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Home My WebLink AboutCouncil Information Memorandum 03-22-2012CITY OF PLYMOUTH rp COUNCIL INFO MEMO March 22, 2012 EVENTS/MEETINGS March, April, May 2012 Official City Meeting Calendars................................................................. Page 1 Tentative List of Agenda Items for Future City Council Meetings ..................................................... Page 4 CORRESPONDENCE Letter to Property Owner, RE: Variance for Carlson Real Estate Company 2012009 ........................ Page 5 Letter to Property Owner, RE: Variance for Damien & Julie Mickchl 2012017 ............................... Page 6 Letter to Property Owner, RE: Kingsview Heights Edge Mill & Overlay Project 12002 ................... Page 7 Irish giant pays $300 million for Plymouth medical firm, StarTribune............................................ Page 11 State of the Cities 2012: City Fiscal Conditions, LMC..................................................................... Page 13 Provision of Police Services Across Minnesota, LMC...................................................................... Page 30 MINUTES CICC Executive Committee Meeting Minutes 03/14/12.................................................................. Page 34 Planning Commission Meeting, 2/15/12............................................................................................ Page 37 City of Plymouth Adding Quality to Life March 2012 Modified on 03122112 Page 1 1 2 3 9:00 AM - 12:00 PM CITY SAMPLER Plymouth City Hall 4 5 6 7 7:30 AM 8 7:00 PM 9 10 STATE OF THE POLICE DEPT. CITY MEETING ANNUAL Council Chambers RECOGNITION EVENT Cancelled Plymouth Creek PLANNING Center COMMISSION MEETING Council Chambers 11 12 13 5:30 PM 14 15 16 6:30 PM 17 SPECIAL 7:00 PM FIRE DEPT. COUNCIL MEETING ENVIRONMENTAL ANNUAL Fire Study Medicine Lake Room QUALITY RECOGNITION COMMITTEE (EQC) EVENT 6:30 PM HRA MEETING Kelly Inn SPECIAL MEETING Medicine Lake Room Council Chambers Plymouth 7:00 PM Daylight Savings REGULAR COUNCIL Time Begins MEETING Council Chambers 18 19 20 21 7:00 PM PLANNING 22 6:0o—s:oo PM 23 24 COMMISSION ENVIRONMENTAL MEETING QUALITY FAIR Council Chambers Kimberly Lane Elementary School 7:00 PM PLYMOUTH ADVISOR COMMITTEE ON 7:00 PM TRANSIT (PACT) HRA MEETING STUDY SESSION Medicine Lake Room Medicine Lake Room 25 26 27 28 29 30 31 7:00 PM REGULAR COUNCIL MEETING Council Chambers Modified on 03122112 Page 1 City of Plymouth Adding Quality to Life April 2012 1 2 3 4 5 6 7 7:00 PM PLANNING COMMISSION MEETING Council Chambers Passover Begins at Sunset 8 9 10 6:00 PM 11 12 13 5:00-9:00 PM 14 BOARD OF 7:00 PM 5:00-9:00 PM PRIMAVERA 10:00 AM -4:00 P. EQUALIZATION ENVIRONMENTAL PRIMAVERA Plymouth Fine PRIMAVERA Council Chambers QUALITY Arts Council Show Plymouth Fine Art COMMITTEE Plymouth Fine Plymouth Creek Council Show Immediately (EQC) MEETING Arts Council Center Plymouth Creek Cent( Following BOE Council Chambers Show Plymouth Creek 6:00-8:00 PM 1:00 PM REGULAR COUNCIL Center YARD Et GARDEN EXPO YARD Et GARDEN YAR Et Easter SundayPlymouth MEETING Creek EXPO Council Chambers Center Fieldhouse Plymouth Creek Cent( 15 16 17 18 7:00 PM 19 20 21 1:00-4:00 PM 10:00 AM -4:00 PM PLANNING PRIMAVERA 7:00 PM -8:30 PM COMMISSION Plymouth Fine PRIMAVERA MEETING Arts Council Plymouth Fine Council Chambers Show Arts Council Plymouth Creek Show Center Plymouth Creek Center 22 23 246:00 PM BOARD OF 25 26 27 28 6:00 PM 7:00 PM 7:00 PM WALK EQUALIZATION PLYMOUTH HRA MEETING WITH THE MAYOR Reconvened ADVISORY Medicine Lake Room Plymouth if Necessary COMMITTEE ON Creek Center Council Chambers TRANSIT (PACT) Immediately STUDY SESSION Following BOE Medicine Lake Room REGULAR COUNCIL MEETING Council Chambers 29 30 Modified on 03122112 Page 2 City of Plymouth Adding Quality to Life May 2012 Page 3 1 5:00 PM 2 7:00 PM 3 7:00 PM 4 5 SPECIAL COUNCIL PLANNING HUMAN RIGHTS MEETING COMMISSION COMMITTEE Development Tour MEETING MEETING With Planning Council Chambers Medicine Lake Room Commission Meet at City Hall 6 7 8 7:00 PM 9 7:00 PM 10 7:00 PM 11 12 8:00 AM -1:00 PM REGULAR COUNCIL ENVIRONMENTAL PARK Et REC Plymouth MEETING QUALITY ADVISORY Fire Department Council Chambers COMMITTEE COMMISSION Annual Waffle (EQC) MEETING (PRAC) MEETING Breakfast Council Chambers Council Chambers Fire Station 3 13 14 15 16 17 18 19 7:00 PM PLANNING 7:30 AM -2:00 PA COMMISSION SPECIAL MEETING DROP OFF DAY Council Chambers Plymouth Maintenance Facility 20 21 22 23 7:00 PM 24 7:00 PM 25 26 7:00 PM PLYMOUTH HRA MEETING REGULAR COUNCIL ADVISORY Medicine Lake Room MEETING COMMITTEE ON Council Chambers TRANSIT (PACT) MEETING Medicine Lake Room 27 28 29 30 31 MEMORIAL DAY Observed CITY OFFICES CLOSED Page 3 Tentative Schedule for City Council Agenda Items April 10, Board of Equalization, 6:00 p.m., Council Chambers April 10, Regular, Immediately following Board of Equalization, Council Chambers • Project and Assessment hearing on 2012 Street Reconstruction, Circle Park (12001) • Presentation by Hennepin County Commissioner Jeff Johnson April 24, Board of Equalization (if necessary), 6:00 p.m., Council Chambers April 24, Regular, Immediately following Board of Equalization, Council Chambers May 1, 5:00 p.m. • Development tour with Planning Commission May 8, Regular, 7:00 p.m., Council Chambers May 22, Regular, 7:00 p.m., Council Chambers June 12, Regular, 7:00 p.m., Council Chambers June 26, Regular, 7:00 p.m., Council Chambers Page 4 Plymouthr� Adding Quality to Life March 23, 2012 SUBJECT: VARIANCE FOR CARLSON REAL ESTATE COMPANY (2012009) Dear Property Owner: Pursuant to the provisions of the Plymouth Zoning Ordinance, this letter is to inform you of a request by Carlson Real Estate Company, under File No. 2012009, for a site plan amendment and variances to allow a 1,872 -square foot detached accessory building at One Carlson Parkway. The variances would allow the accessory building within a front yard and would allow a 24 -foot side setback from the north property line, where 75 feet is required by the zoning ordinance. While a formal public hearing is not required, it is the City's policy to inform adjacent property owners/occupants of such applications. Hennepin County records indicate your property is within 200 feet of the site of this proposal. You are hereby notified of and cordially invited to attend a meeting to be held by the Plymouth Planning Commission at 7:00 p.m., Wednesday, April 4, 2012 in the Council Chambers at the Plymouth City Hall, 3400 Plymouth Boulevard. The public will be invited to offer questions and comments concerning this application at that time, or feel free to call the city planning department at (763) 509-5450 for more information. You may submit comments in writing. All written comments will become part of the public record. INFORMATION relating to this request may be examined at the community development information counter (lower level of City Hall), on Mondays and Wednesday through Friday from 8:00 a.m. to 4:30 p.m., and Tuesdays from 8:00 a.m. to 6:00 p.m., except holidays Sincerely, 4l Barbara G. Thomson, AICP Planning Manager 2012009pmpnotice 3400 Plymouth Blvd • Plymouth, Minnesota 55447-9482 • Tel: 763-509-5000 • www.d.plymouth.mn.us Page 5 rp) City of Plymouth Adding Quality to Life March 23, 2012 SUBJECT: VARIANCE FOR DAMIEN AND JULIE MICKCHL (2012017) Dear Property Owner: Pursuant to the provisions of the Plymouth Zoning Ordinance, this letter is to inform you of a request by Damien and Julie Mickehl, under File No. 2012017, for a variance to allow a detached accessory building within a front yard for property located at 17330 1 Ph Avenue North. While a formal public hearing is not required, it is the City's policy to inform adjacent property owners/occupants of such applications. Hennepin County records indicate your property is within 200 feet of the site of this proposal. You are hereby notified of and cordially invited to attend a meeting to be held by the Plymouth Planning Commission at 7:00 p.m., Wednesday, April 4, 2012 in the Council Chambers at the PIymouth City Hall, 3400 Plymouth Boulevard. The public will be invited to offer questions and comments concerning this application at that time, or feel free to call the city planning department at (763) 509-5450 for more information. You may submit comments in writing. All written comments will become part of the public record. INFORMATION relating to this request may be examined at the community development information counter (Iower level of City Hall), on Mondays and Wednesday through Friday from 8:00 a.m, to 4:30 p.m., and Tuesdays from 8:00 a.m. to 6:00 p,m., except holidays Sincerely, Barbara G. Thomson, AICP Planning Manager 2412017propnotice 12TH AVE N s - O cc 11TH AVE N `-�--- u. ~r_.. FF- 3400 Plymouth Blvd • Plymouth, Minnesota 55447-9482 • Tel: 763-509-5000 • www.ci.plymouth.mn.us Page 6 rp) City of Plymouth Adding Quality to Life March 20, 2012 SUBJECT: KINGSVIEW HEIGHTS EDGE MILL AND OVERLAY PROJECT CITY PROJECT NO. 12002 Dear Property Owner: Due to the condition of your street an edge mill and overlay project is proposed on the streets shown on the attached map. This project will involve a contractor removing (milling) an inch of pavement on the edges of the street, then applying 1.5 inches of new asphalt over the entire roadway. If the project proceeds, it is estimated that construction would begin in August, 2012 and be completed within a month. In addition, city crews will be in the area performing repairs to the watermain, storm sewer, sanitary sewer, concrete curb and gutter, and minor subgrade corrections to the roadway. Due to the warm weather, you may see this work in beginning in the next few days and lasting until June. This work will be phased so the utility repairs will be completed first, followed by any concrete curb and gutter replacement with the asphalt patching as the last item. The City Council has adopted an assessment policy that assesses adjacent, benefitting property owners a portion of the cost of the improvement. At this time, the estimated cost per property owner is $1,000 for this work. Information regarding payment options and proposed assessments will be provided with the notice sent prior to the public hearing. At this meeting, the City Council will consider ordering the improvement, adopting the assessments, and awarding a contract for the work related to the milling and paving. Attached is question and answers that other residents have had with this project in the past. There is also additional information, including before and after pictures from previous projects available on the City's website at www.piiMouthmn.gov/index.aspx`'page=657. If you have any questions or concerns, please contact meat 763-509-5541 or jrenneberg@plymouthmn.gov. Sincerely, 5 �z (� James Renneberg, P.E. Assistant City Engineer enclosures Cc: Judy Johnson, Councilmember Ward 1 Doran Cote, P.E., Public Works Director 3400 Plymouth Blvd • Plymouth, Minnesota 55447-1482 - Tel: 763-509-5000 • www.plymouthmn.gov Page 7 O: Projects Current Projects 2010-21119 12002 Letters Prnposel Aojea Kingvimr 121102.dot ......... March 2012 Kingsview Heights Edge Mill & Over J-. Location Map CP 12002 §C�tjMJDT LAKE RU I j2 City of Pjym(ftgeWnesota EDGE MILL AND OVERLAY PAST QUESTION AND ANSWERS What does this project include? The project includes milling the edges of the pavement and then overlaying the entire surface of the pavement. This is NOT a complete reconstruction project and things will not be perfect when completed. These streets are in such poor condition. Why isn't a reconstruction project planned? Reconstruction projects are extremely invasive projects that take the entire summer to construct and project costs would be about 7 times higher (including assessments). Will I be charged for any of the costs of the project? Benefited properties will be assessed 40% of the actual project cost. The minimum assessed amount will be $1,000 except that the total assessed amount exceed the actual project cost. How can l pay for this assessment? Exact details of the payment options will be provided prior to the assessment hearing but the property owner has a number of options. Note: The standard interest rate for 2012 is 2.44% for assessments under $5,000. • Option 1 -Full payment within 30 days of the assessment hearing with no interest • Option 2 -Full payment after 30 days of the assessment hearing but prior to November 15, 2012 with interest to the date of the payment • Option 3 -Full payment between November 15, 2012 and November 15, 2013. Interest on this option will be for the entire year regardless of when the balance is paid off. • Option 4 -Payment over the standard assessment term, which is 5 years. Payments would be included in your property taxes. • Option 5 -Partial prepayment within 30 days of the assessment hearing (minimum amount of $100). The remaining balance would be paid under Option 4. Will cracked or damaged curb be replaced with the project? Only curb and gutter that is in extremely bad condition will be replaced as determined by city staff. Curb that is to be replaced will be marked in the spring using pink paint. What does the paint mean? Most of the paint in the area will be used for locating purposes. For example, blue paint in the boulevards is used to indicate where a water service to a home is located. Two exceptions are pink paint, which generally indicates concrete curb and gutter removals, and white paint, which generally indicates utility removals near a sewer manhole or watermain valve. Will I be able to get in and out of my driveway during the project? For the utility work, the majority of the residents will not have a problem getting in and out of their driveway; the exceptions will be if work is done next to a sewer manhole or watermain valve, or if concrete curb and gutter will be replaced next to your driveway. For the paving operation, milling in front of a driveway generally takes about 20 minutes and paving may take up to an hour, but contractors in the past have been willing to work with residents to get vehicles in and out with minimal wait, Will my driveway or boulevard be impacted? No, unless concrete curb and gutter is replaced or if there is a utility repair next to your property. Driveway patching or seeding would be included with the project. -over- Page 9 How long will the project last? Work such as watermain valve and storm sewer repair, curb and gutter replacement and patching will begin by city crews in the spring and last two months. The milling of the roadway and paving by a contractor will take one month. However, the contractor is required to pave a street within two weeks once it is milled. There is standing water in the street, will this be corrected? Standing water in the asphalt will likely be corrected with this project but water in the curb line may not be corrected although each case could be reviewed. 'please contact the project engineer asap to provide the location of the standing water in the curb. How long will the new street last? It is estimated that the new street will last 7-10 years, if not longer. The city's first edge mill and overlay project was in 2005 on streets that were in similar condition to the streets in this neighborhood. Those streets are still performing very well. Will there be maintenance on the streets once the overlay is completed? Yes, the city will come back in one to two years to seal cracks in the roadway (cracks in asphalt are common on any project). Who should l contact if 1 have questions now or during construction? You may contact Jim Renneberg at 763-509-5541 or jrenneberg@plymouthmn.gov for any questions about the project. Page 10 March 20, 2012 Irish giant pays $300 million for Plymouth medical firm JAMES WALSH, Star Tribune SuperDimension, a medical device company whose U.S. operations are centered in Plymouth, has agreed to a $300 million acquisition by the Irish health care giant Covidien. SuperDimension, whose headquarters are in Israel, makes and markets minimally invasive pulmonology devices that enable the diagnosis and, potentially, the treatment of lung disease. The company's i•Logic System uses GPS -like technology to probe deep into the lungs in a minimally invasive way. Covidien spokesperson Marta Newhart said Monday that the acquisition adds a "new growth platform" for Covidien and brings technology that addresses an unmet need. "It's an impressive company, obviously, or we would not have looked into acquiring them," she said. The deal marks the second time in less than two years that Dublin -based Covidien has acquired a medical device firm with Minnesota operations. In June 2010, Covidien announced the acquisition of ev3, a Plymouth -based medical device company, for $2.6 billion. Said Newhart: "We like Minneapolis." The SuperDimension acquisition is expected to close in the second quarter of 2012, Covidien said Lung cancer is the deadliest form of cancer in the United States, killing more than 160,000 people this year -- more than breast, colon, prostate and pancreatic cancers combined, according to the National Cancer Institute. Despite advances in medical technology, the mortality rate for lung cancer has remained high over the past 30 years. That's because lung cancer is difficult to detect in its earliest stages. A traditional bronchoscopy - - sticking a tube down the nose or mouth -- can only go so far, and exploratory surgery might damage the lungs. I•Logic uses what SuperDimension calls Electromagnetic Navigation Bronchoscopy to extend the reach of conventional bronchoscopes. The product has annual sales of approximately $30 million. Reached while traveling Monday, SuperDimension CEO Dan Sullivan said: "We are very excited about this merger. Covidien is a very stable company with 40,000 employees and sales in over 140 countries, and this will allow us to expand our global footprint much more rapidly. This represents a great opportunity for patients, our doctor -and -hospital customers and our employees." SuperDimension employs 50 people in outside sales in the United States and an additional 57 in Minnesota. It also has 22 employees in Israel and several distributors in Europe and Australia. Page 11 "We are approved and actively selling in the United States, Europe and Australia," Sullivan said. "We have performed 30,000 procedures in over 400 hospitals, most of them in the U.S." James Walsh • 612-673-7428 Page 12 State of the Cities 2012: City Fiscal Conditions Introduction This marks the ninth consecutive year that the League of Minnesota Cities has asked member city officials to report on the kinds of fiscal challenges faced in their cities and to describe the strategies used to address those challenges (see the League's website for the 2012 survey instrument). A total of 449 cities participated in the survey for a response rate of 54 percent. It is important to remember that survey results must be considered as a snapshot of conditions at a specific point in time. Cities responded to the 2012 survey from December 6, 2011, through January 12, 2012. This year city officials responded to four questions that have been asked every year as well as to several new questions about how police services are provided in their community. This report will discuss the responses to these four base questions, comparing them with data from prior years. City officials were also asked questions about police services, and a separate report explores those responses. View report on Provision of Police Services Across Minnesota (pdf) Cities continue to face recession and recovery -related challenges The Great Recession and its slow recovery have been difficult for cities. Many problems that arose during the recessionunemployment, foreclosures, delayed or cancelled development, a weak housing market, and business closures—have become ongoing challenges. The state's continued budget difficulties (as demonstrated by yet another budget deficit during the 2011 legislative session) have also influenced city fiscal conditions. Many cities are making a variety of changes to adjust to the so-called "new normal." Signs of recovery at the state level are slowly emerging. Minnesota's net general fund revenues in November and December were greater than forecast, due largely to stronger than projected individual income tax payments.' In contrast, sales tax collections were approximately $1 million less than forecast (A recent nationwide report found that overall state revenues are now back above pre -recession levels but are still below their peak levels. 2) The state, however, continues to struggle to balance its budget. The 2011 regular legislative session opened with the state facing a $5 million deficit and ended without a budget agreement. Failure of the Legislature and governor to reach an agreement by the end of the biennium resulted in a state government shutdown beginning July 1, 2011. A court ruling was issued that ordered 1 "January 2012 Economic Update," Minnesota Management and Budget (MMB), Jan. 2012. 2 Dadayan, Lucy. "Tax Revenue Keeps Rising, But Growth Again Ticks Downward," Nelson A. Rockefeller Institute of Government, Jan. 2012. Page 13 specific state functions relating to the health and safety of Minnesotans to continue. Payment of city aid and market value credit reimbursement was included in this order. Gov. Dayton and legislative leaders came to agreement on major funding bills, a bonding bill, and tax bill on July 19. 2011. The governor called for a special session that afternoon, and all bills were signed into law the next day, officially ending the shutdown. Cuts to city aid and credit reimbursement payments were included in the final budget agreement. While not as dire as some originally predicted, cities collectively lost $102 million in local government aid (LGA) and $48 million in market value homestead credit (MVHC) in 2011. The total LGA appropriation for 2012 and beyond was frozen at $426 million. The MVHC program was eliminated beginning in 2012 and replaced with a homestead market value exclusion program (HMVE). Under the new program, a portion of a homeowner's market value will be excluded from property taxes. The exclusion is calculated similarly to MVHC, but will shift taxes to all other property. Some challenges cities have dealt with over the last several years may be lessening or at least not worsening. Levy limits, which have been in place for cities with populations over 2,500 since 2009, expired with taxes payable in 2011. There have been slight improvements in job numbers and the state's unemployment rate. Jobs were up slightly in the second quarter of 2011; overall wages were also up from 2010.3 The state's unemployment for December fell to 5.7 percent from 6.9 percent the year prior.4 While foreclosures still plague many communities, data suggests that their numbers may be decreasing. Data from the second quarter 2011 shows a decline in foreclosures statewide over the same period in 2010.5 However, the foreclosure crisis and recession continue to affect the real estate market in general. The statewide median sales price in 2011 was down 8 percent compared to a year earlier.6 Total market value in cities was down almost 6 percent in 2011 compared to 2010.7 Despite these challenges, cities continue to provide services that many expect and rely on. As they make decisions about how to meet the community's needs given resource constraints, city officials employ various budget -balancing strategies, including cutting spending, collaborating with other local governments, and increasing property taxes or fees. As cities continue to navigate the new normal, strategies for addressing needs may change from those used in the past. Share of cities reporting an improved ability to meet financial needs increases for second year in a row Highlights of this section 3 "Quarterly Census of Employment and Wages," Minnesota Department of Employment and Economic Development (DEED), Jan. 2012. 4 "State and National Employment and Unemployment," DEED, Jan. 2012. 5 check Housing Link in Feb. for Q3 data 6 "Local Market Update for December 201 l," Minnesota Association of Realtors, Feb. 2012. 7 "2011 Property Tax Report," Minnesota Cities, Sept. -Oct. 2011. Page 14 • The share of cities that reported an increased ability to meet needs rose for the second year in a row, from 23 percent in 2010 to 30 percent in 2011. • Looking to 2012, 31 percent of cities predict more favorable conditions. The share of cities that reported being better able to meet financial needs during the past year grew from 23 percent in 2010 to 30 percent in 20118 (see Chart A). This is the second time since 2006 that this figure has increased. Looking to next year, a slightly larger share of cities, 31 percent, predicts an easier time meeting needs in 2012. While the mix of cities responding to the survey changes each year and must be considered when comparing responses from multiple years, 59 cities have responded to the survey in all nine years. Data from this group show a similar trend with 31 percent reporting improved conditions in 2011, and 27 percent predicting better times in 2012. Chart A: Ability of Minnesota cities to meet financial needs 100% 80% — — — 60% 40% ME 20% 0% mm 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (predict) ■ % of cities better able to meet financial needs ■ % of cities less able to meet financial needs The proportion of cities reporting an improvement in conditions increased annually between 2003 and 2006, when roughly half of cities reported being better able to meet needs. From 2007 to 2009 this share declined, until just 17 percent of cities reported more favorable conditions. This share edged upward in both 2010 and 2011; it remains to be seen whether this growth will continue. It is important to remember that "better able" does not mean that conditions are good, just that they're more favorable than in the prior year. Also, cities are working to adapt to the "new normal." Cities may be becoming more adept at meeting needs with fewer resources. Cities may now be accustomed to confronting problems that arose during the recession and may be less surprised by these challenges. Actions taken over the last several years may have improved their ability to meet needs now. 8 The measure of "better" or "less able" is a relative comparison between a city's fiscal condition in the current year and in the prior year. In other words, a response of "better able" does not imply that a city's financial circumstances are good, only that they improved over the previous year. Cities are not asked how well they're able to meet needs in any given year. 9 The share of cities reporting an increased ability to meet needs and the share reporting a decreased ability may not sum to 100 percent. Cities are not required to answer all questions on the survey. Cities often leave no response if they are unsure of how to answer or if the question does not apply to their city. Many cities that leave the question regarding ability to meet fiscal needs blank do so because they feel that there is no change in this ability between years. Page 15 Likewise, a recent survey conducted by the National League of Cities (NLC) suggests that city officials nationwide may be adjusting their assessment and expectations of meeting fiscal conditions to reflect the new normal. 10 The survey, conducted in the spring of 2011, shows that 43 percent of city officials were better able to meet needs in 2011 than in 2010. Just 13 percent reported more favorable conditions on the 2010 nationwide survey. Cities have now been subject to aid and credit reimbursement cuts for four years. Many of these cuts have occurred midyear, beginning with then -Gov. Pawlenty's unallotment in December 2008, which reduced aid and credit reimbursement payments to cities over 1,000 in population. The now - ratified unallotment cuts for 2009 and 2010 were announced during the summer of 2009; additional cuts were enacted in 2010. Cities did have time to prepare for the 2010 and 2011 reductions, but have had to meet these challenges in the midst of addressing problems related to the recession such as a shrinking tax base and increased resistance to property taxes. Survey responses reveal very few differences between cities that lost LGA payments each year since 2008 and those that did not experience cuts in each year. Roughly 30 percent in each group reported being better able to meet needs in 2011. The gap widens slightly when looking to 2012, with 29 percent of cities that did not have cuts in all four years predicting an easier time meeting needs, and 34 percent of cities with cuts each year doing so. Again, cities are likely adjusting to operating in the new normal and have reset their expectations for revenues and expenditures. Cities have prepared by making cuts, instituting layoffs, and implementing other reductions for the last several years. The share of a city's revenue that is comprised of LGA varies from city to city. The LGA program was designed to equalize property tax bases around the state and ensure that Minnesotans in all communities have access to services without having to pay unreasonably high property taxes. The LGA formula measures a city's need against its capacity to pay for those needs. Some cities do not receive any LGA. For other cities, LGA is a very important revenue source. On this year's survey, 47 percent of cities that did not receive any LGA in 2011 reported being better able to meet needs. Over three-quarters of these cities have not been certified to receive LGA since 2008 and, thus, have not had to plan for a potential cut in aid. A smaller share, 27 percent, of cities that did receive LGA in 2011 reported an easier time meeting needs. Levy limits were in place for cities with populations over 2,500 for 2009, 2010, and 2011. On last year's survey 24 percent of cities not governed by levy limits reported an improved ability to meet needs while 19 percent of cities bound by levy limits did so. This year cities that were restricted by levy limits were more likely to report an increased ability to meet needs than cities that were not subject to levy limits (36 percent and 27 percent, respectively) (see Chart B). This difference is likely due in part to population size (see next section). 10 Hoene, Christopher W. and Michael A Pagano. "Research Brief on America's Cities: City Fiscal Conditions in 2011," National League of Cities, Sept. 2011. Page 16 1000 60%f �ff 20% Chart B: Percentage of Minnesota cities better able to meet financial needs (by levy limit status) 2009 2010 2011 IL 2012 (pred) ■ Cities not subject to levy limits ■ Cities subject to levy limits Trends by size follow pattern of cities overall Highlights of this section • The increase in the proportion reporting more favorable conditions from 2010 to 2011 is greatest among the largest cities. However, this share grew across all size categories. • There is no clear trend in the share of cities predicting an easier time meeting needs in 2012. Cities in three size categories showed a decrease while the others showed an increase in the share predicting an improved ability to meet needs in 2012. Just as the share of cities overall reporting an improved ability to meet needs in 2011 grew, so too did this share across all population size categories. For the past two years the proportion of cities with populations between 301 and 650 reporting positive conditions has fallen from the prior year. This year, the share grew ever so slightly, from just under 24 percent in 2010 to just over 24 percent in 2011 (see Chart Q. 100% 80% 60% 40% 20% 0% Chart C: Percentage of Minnesota cities better able to meet financial needs (by population size) 0-300 301-650 651-1300 1301-3 000 3,001-10,000 10,000+ All Cities ■ 2003 ■ 2004 ■ 2005 ■ 2006 ■ 2d07 ■ 2608 ■ L009 ■ 2010 2011 ■ 2012 prediction The increase in the proportion reporting more favorable conditions from 2010 to 2011 is greatest among the largest cities. This share also experienced a large jump in 2010. Since 2009 cities of all sizes have been subject to aid and credit reimbursement cuts. Looking ahead there is no clear trend Page 17 in the share of cities predicting an easier time meeting needs in 2012. Three size categories—the smallest cities, the largest cities, and those between 651 and 1,300—showed a decrease while the others showed an increase in the share predicting an improved ability to meet needs. Trends by region vary from overall trends Highlights of this section • Metro cities were more likely to report an improvement in conditions than Greater Minnesota cities. • Across the state, all but two regions showed an increase over last year in the proportion of cities reporting an increase ability to meet needs. Like last year, the share of cities reporting being better able to meet needs is larger for cities in the seven -county metro area than for Greater Minnesota cities (44 percent and 27 percent, respectively). The same trend is true among cities classified as metropolitan statistical areas compared with those that are notal (see Table A). Because population is a component in MSA status, it is not surprising, given the trends by population discussed above, that MSA cities are more likely to report improved conditions. This trend continues when looking to 2012, with 32 percent of MSA cities predicting more favorable conditions compared to 29 percent of non -MSA cities. Table A: Percentage of Minnesota cities better able to meet needs (by MSA status) Across the state, all but two regions showed an increase over last year in the proportion of cities reporting an increased ability to meet needs. Both the Southwest Central and the Southwest region experienced a decrease in this share. These regions did experience an increase in this share from 2009 to 2010. The percentage of cities reporting an improvement in ability to meet needs did not change from 2010 to 2011 in the West Central region (see Figure 1). 11 A metropolitan statistical area (MSA) is defined by the U.S. Census Bureau as a geographical area containing at least one urbanized area of at least 50,000 inhabitants with a total area population of at least 100,000. The area consists of one or more counties. As of December 2009, there are eight MSAs that include at least one Minnesota county: Duluth, Fargo, Grand Forks, La Crosse, Mankato -North Mankato, Minneapolis -St. Paul -Bloomington, Rochester, and St. Cloud. Page 18 2005 2006 2007 2008 2009 2010 2011 reddMSA cities 35% 48% 57% 46% 24% 15% 25% 36% ;20122004 %All Cities 31% 45% 53% 40% 26% 17% 23% 30% % Non -MSA cities 29% 43% 50% 34% 27% 20% 21% 26% 29% Across the state, all but two regions showed an increase over last year in the proportion of cities reporting an increased ability to meet needs. Both the Southwest Central and the Southwest region experienced a decrease in this share. These regions did experience an increase in this share from 2009 to 2010. The percentage of cities reporting an improvement in ability to meet needs did not change from 2010 to 2011 in the West Central region (see Figure 1). 11 A metropolitan statistical area (MSA) is defined by the U.S. Census Bureau as a geographical area containing at least one urbanized area of at least 50,000 inhabitants with a total area population of at least 100,000. The area consists of one or more counties. As of December 2009, there are eight MSAs that include at least one Minnesota county: Duluth, Fargo, Grand Forks, La Crosse, Mankato -North Mankato, Minneapolis -St. Paul -Bloomington, Rochester, and St. Cloud. Page 18 Figure 1: Percentage of cities better able to meet needs in 2010/2011 (by region) Northwest 20142% Headwaters 33160°1° i Central P20% Upper MN North Central 14/28% Central 23,128%, Arrowhead 21126% East C 2613 'alley Southwest 7 -Count 20/27% Central Metro 1503% 32;44% = Percentage reporting improvement in 2011 is less than percentage reporting improvement in 2010 =Percentage reporting improvement in 2011 is more than percentage reporting improvement in 2010 r-7 Percentage reporting improvement in 2011 is the same as percentage reporting improvement in 2010 uthwest South Central Southeast 25113% 'IB21132/° g�31'°I° —. ° Looking to 2012, the portion predicting more favorable conditions is larger than the share reporting better conditions in 2011 for five regions (see Figure 2). Seven regions show a decline in this share and one, the Southwest Central region, shows no change. The regions in the southwestern corner of the state see an increase while the regions along the southeastern border of the state see a decrease. Page 19 Figure 2: Percentage of cities predicting improved conditions for 2012 (by region) Headwaters 50% Arrowhead 34% North Central antral 38% East Central 25% Central 24% Upper MN Valley Southwest Cau Il Central 7- 33% 13% Me 40 Southwest South Central Southeast 25% 38% 28% =Percentage predicting improvement in 2012 is less than percentage reporting improvement in 2011 = Percentage predicting improvement in 2012 is more than percentage reporting improvement in 2011 =Percentage predicting improvement in 2012 is the same as percentage reporting improvement in 2011 Share of cities reporting shortfalls declines in all categories Highlights of this section • Last year the only major revenue source associated with a decline in the share of cities reporting a shortfall was fees and charges; this year fewer cities saw a drop in each source. • More than half of all cities saw property taxes and state revenues fall below expectations in 2011. Page 20 For 2011, smaller shares of cities reported shortfalls in all revenue sources (see Table B). For some revenue sources, such as property taxes and state revenues, the share has not decreased in many years. Cities may have lowered their expectations of aid and credit reimbursement payments from the state after several years of reductions. Last year the only major revenue source where there was a decline was fees and charges. It remains to be seen whether this decline in revenue shortfalls will continue into the future. The shares of cities reporting shortfalls in property taxes and state revenues remain over 50 percent. Table B: Percentage of Minnesota cities reporting revenue shortfalls* * Combines shortfalls of greater than and less than 10 percent of expected revenues The portions of cities reporting shortfalls in the four main revenue sources (property taxes, fees and charges, state revenues, and federal revenues) have generally grown each year since 2006. The slight dip this year may be another sign that cities are becoming accustomed to operating in the new normal. Many problems brought about by the recession and slow recovery are no longer new. Cities may also have adjusted expectations and made changes to how they operate. After multiple years of state aid and MVHC reimbursement cuts, some cities are starting to budget for less than their certified LGA amount. Others have planned on receiving less than their certified levy due to a reduction in MVHC reimbursement payments or may have levied above what was needed in order to net the necessary amount. Reduced MVHC reimbursement payments are one reason cities may report a shortfall in property taxes. 12 Cities may experience delinquent property tax payments as residents struggle with the economic recession. Cities may have experienced business closures, stalled development, and foreclosures, all of which can result in property tax revenue shortfalls. Shortfalls in revenue from fees and charges may also stem from problems associated with the recession and slow recovery. However, the drop in this share from 2010 suggests some of these effects may be stabilizing as cities adapt to the new normal. 12 Some cities may report a loss of MVHC reimbursement as a loss of property taxes, as it accounts for a portion of their property tax levy, while others report it as a shortfall in state revenue. Page 21 Property taxes Fees and charges Sales tax Local income tax Lodging and restaurant taxes State revenues Federal revenues 2003 28% 17% 3% n/a 5% 82% 12% 2004 27% 24% 1% 0% 3% 55% 8% 2005 40% 25% 3% 2% 4% 39% 12% 2006 40% 33% 4% 2% 4% 31% 13% 2007 43% 36% 6% 3% 5% 35% 15% 2008 54% 41% 7% 3% 8% 41% 14% 2009 62% 57% 8% 3% 12% 61% 16% 2010 68% 51% 8% 3% 11% 73% 22% 2011 1 67% 1 43% 1 4% 1 2% 1 7% 1 65% 17% * Combines shortfalls of greater than and less than 10 percent of expected revenues The portions of cities reporting shortfalls in the four main revenue sources (property taxes, fees and charges, state revenues, and federal revenues) have generally grown each year since 2006. The slight dip this year may be another sign that cities are becoming accustomed to operating in the new normal. Many problems brought about by the recession and slow recovery are no longer new. Cities may also have adjusted expectations and made changes to how they operate. After multiple years of state aid and MVHC reimbursement cuts, some cities are starting to budget for less than their certified LGA amount. Others have planned on receiving less than their certified levy due to a reduction in MVHC reimbursement payments or may have levied above what was needed in order to net the necessary amount. Reduced MVHC reimbursement payments are one reason cities may report a shortfall in property taxes. 12 Cities may experience delinquent property tax payments as residents struggle with the economic recession. Cities may have experienced business closures, stalled development, and foreclosures, all of which can result in property tax revenue shortfalls. Shortfalls in revenue from fees and charges may also stem from problems associated with the recession and slow recovery. However, the drop in this share from 2010 suggests some of these effects may be stabilizing as cities adapt to the new normal. 12 Some cities may report a loss of MVHC reimbursement as a loss of property taxes, as it accounts for a portion of their property tax levy, while others report it as a shortfall in state revenue. Page 21 As in past years, smaller cities were generally more likely than larger cities to report shortfalls in property taxes. The reverse is typically true for significant shortfalls in revenue from fees and charges, as larger cities generally have more options for implementing fees. However, this year, cities between 1,301 and 3,000 in population, followed closely by the smallest cities, were least likely to report significant shortfalls in fee revenue (see Chart D). The share of larger cities reporting shortfalls in fee revenue was much smaller than in 2010. Cities have likely adjusted their expectations for fee revenues. For example, cities may now budget for less fee revenue from building permits as development activity has slowed. Just 14 percent of cities reported an increase in the service needs of new development over the last year. 100% 80% — 60% 40% 20% ()0/- 0 % Chart D: Percentage of Minnesota cities reporting revenue shortfalls greater than 10 percent of expected revenue (by population size and revenue type) Under 300 301-600 601-1,300 1,301-3,000 3,001-10,000 Over 10,000 ■ Property taxes ■ Fees and charges ■ State revenues ■ Federal revenues Greater Minnesota cities were more likely than metro cities to report shortfalls of 10 percent or more in property tax revenue (19 percent vs. 6 percent). The gap is much smaller when looking at significant shortfalls in state revenues -29 percent of metro cities and 33 percent of Greater Minnesota cities reported a shortfall of 10 percent or more in state revenues. All cities were subject to aid and credit reimbursement cuts in 2010 and 2011. The pattern in significant shortfalls of fee revenue changes this year, with 10 percent of metro cities and 13 percent of outstate cities reporting a significant shortfall. Last year 28 percent of metro cities and 18 percent of Greater Minnesota cities reported a gap of 10 percent or more in expected fee revenue. Larger shares of cities reporting no change in many budget factors Highlights of this section • Two years ago roughly one-third of cities saw increasing tax bases while another third experienced an actual decrease in value. Last year the share reporting an actual decline jumped to just under 50 percent. This year that share rose further, to 59 percent. The share reporting an increase in value in 2011 was just 16 percent. • The five budget factors identified by the most cities as having increased in 2011 were prices, cost of living, and inflation; infrastructure needs; cost of employee health benefits; public safety needs; and cost of employee wages and salaries. Page 22 • The top factors identified as having at least a moderate impact on cities' budgets in 2011 are prices, inflation, and cost of living; tax base changes; infrastructure needs; local economic health; and employee wages and salaries. The annual survey asks cities to indicate whether a wide variety of budget factors increased, decreased, or remained the same compared to the prior year. Many of this year's findings follow trends seen in prior years. However, in many factors the share indicating no change increased over the share doing so in 2010. This gives further support to the idea that cities have prepared for and are adjusting to life in the new normal. For some factors this shift is due to a smaller share of cities reporting an increase. For example, the share reporting an increase in the restrictiveness of tax and expenditure limits fell from 15 percent in 2010 to just 8 percent in 2011. This is likely due to the fact that levy limits for cities over 2,500 in population expire after taxes payable in 2011. Other factors saw smaller shares of cities reporting decreases, such as in public safety needs (0.4 percent in 2011 vs. 4 percent in 2010). Last year there was a new pattern of reported changes in the value of the tax base (see Chart E). In 2009 roughly one-third indicated an increase in value while another third reported a decrease. In 2010, the share reporting an actual decline jumped to almost 50 percent while the portion that saw an increase fell to 23 percent. This pattern is seen again this year with 59 percent reporting a decrease in the value of the tax base and just 16 percent indicating an increase in value. This is likely due to the lag between residential assessed values and continued erosion of the housing market. Assessors determine market values by January of the year before taxes are payable. In other words, values for taxes payable in 2011 were determined in January 2010. Thus, the effects of the steep declines experienced by the housing market over the last several years are finally being seen on tax bases. 100% 80% 60% 40% 20% 0% Chart E: Changes in the value of city tax base (2006- 2011) 2006 2007 2008 2009 2010 2011 ■ % of cities reporting increase ■ % of cities reporting decrease Prices, cost of living, and inflation; infrastructure needs; cost of employee health benefits; public safety needs; and cost of employee wages and salaries were the five budget factors identified by the most cities as having increased in 2011. The same top factors were identified in 2009 and 2010, with the exception of public safety needs, which replaced the cost of employee pensions. The portion of cities reporting an increase in the latter factor dropped from 56 percent in 2010 to Page 23 just 37 percent in 2011. This drop is likely due to the interplay of several factors including retirements, declines in the size of the city workforce, and several years of pay freezes. For the leading factors overall, the size of these shares changed very little over 2010. The shares reporting an increase in prices, cost of living, and inflation; infrastructure needs; and cost of employee wages and salaries increased in 2011, while the shares reporting increases in the other two factors decreased. Many of these top factors were also the leading factors identified by city officials across the U.S. in the recent NLC survey. Pension costs was included in the top five instead of cost of employee wages and salaries. The shares identifying an increase in each factor were larger among city officials nationwide than for officials in Minnesota cities. The share of cities reporting an increase in population grew to 36 percent in 2011, up from 23 percent last year. The share reporting a decrease also rose this year, from 24 percent in 2010 to 26 percent in 2011. This may be due to the fact that cities received 2010 Census data during the last year. Between Census years, cities rely on population estimates. The share of cities reporting an increase in population grows as population size grows. The inverse is generally true as well; the smallest cities were more likely than the largest cities to experience population decline. Across all size categories, the share reporting an increase in 2011 is much larger than the share doing so in 2010. Little difference was observed between years in the shares reporting population decline. Roughly 36 percent of cities in the metro area and in Greater Minnesota reported a population increase in 2011. The share reporting a decrease was much larger among outstate cities (28 percent vs. 17 percent in the metro). The percentage of cities reporting a decline in the health of the local economy fell for the second year in a row, from 53 percent in 2010 to 41 percent in 2011. With 46 percent of cities reporting no change in this factor, it appears that many of the broad economic problems challenging cities are not worsening. Cities may also have adjusted expectations for the local economy as the new normal unfolds. How well cities are able to meet fiscal needs is influenced in part by changes in each budget factor (see Chart F). Changes in these factors affect cities differently depending on their unique circumstances. Cities less able to meet needs were more likely to report negative changes in many budget factors. However, cities that reported being better able to meet needs in 2011 were more likely to report a decrease in the value of the tax base. Page 24 In addition to indicating how a particular budget factor changed over the last year, cities are also asked whether each factor had a moderate, major, or no impact on their 2011 budget. Just five of the budget factors saw an increase in the proportion of cities reporting at least a moderate impact on their budget in 2011 over the share doing so in 2010. The greatest increase is in the share reporting at least a moderate impact due to changes in employee wages and salaries (56 percent in 2011 vs. 50 percent in 2010). The largest decline between 2010 and 2011 was in the share reporting at least a moderate impact due to changes in the cost of employee pensions (53 percent in 2010 vs. 41 percent in 2011). The top factors identified as having at least a moderate impact on cities' budgets in 2011 are prices, inflation, and cost of living (72 percent); tax base changes (71 percent); infrastructure needs (68 percent); local economic health (57 percent); and employee wages and salaries (56 percent). Except for employee wages and salaries, which replaced the cost of employee health benefits, the same leading factors were identified in 2010 and in 2009. A city's ability to meet fiscal challenges is affected not only by the combination of problems it faces, but also by how great an impact budget factors actually have on the city. For all budget factors, the share of cities reporting no impact on the budget was greater for those cities that reported being better able to meet needs in 2011. Except for the cost of employee pensions, the share of cities indicating a major impact was greater among cities that indicated a tougher time meeting needs in 2011. A similar pattern was observed last year. Percentage of cities taking action in broad categories down in 2011 Highlights of this section • Almost all cities (95 percent) reported taking at least one strategy in 2011. The average number of strategies utilized by a city was 3.16. • Except for drawing down reserves, the portion of cities taking action in each category remained the same or fell slightly when compared to 2010. Page 25 Chart F: Minnesota cities less able to meet needs were more likely to report changes in many budget factors 100% 80% 60% 0% 20% 0% Increased Increased Increased cost Increased Decreased Decreased infrastructure prices, of employee education needs value of tax health of local needs inflation, cost pensions base economy of living ■ All cities ■ Cities better able to meet needs ■ Cities less able to meet needs In addition to indicating how a particular budget factor changed over the last year, cities are also asked whether each factor had a moderate, major, or no impact on their 2011 budget. Just five of the budget factors saw an increase in the proportion of cities reporting at least a moderate impact on their budget in 2011 over the share doing so in 2010. The greatest increase is in the share reporting at least a moderate impact due to changes in employee wages and salaries (56 percent in 2011 vs. 50 percent in 2010). The largest decline between 2010 and 2011 was in the share reporting at least a moderate impact due to changes in the cost of employee pensions (53 percent in 2010 vs. 41 percent in 2011). The top factors identified as having at least a moderate impact on cities' budgets in 2011 are prices, inflation, and cost of living (72 percent); tax base changes (71 percent); infrastructure needs (68 percent); local economic health (57 percent); and employee wages and salaries (56 percent). Except for employee wages and salaries, which replaced the cost of employee health benefits, the same leading factors were identified in 2010 and in 2009. A city's ability to meet fiscal challenges is affected not only by the combination of problems it faces, but also by how great an impact budget factors actually have on the city. For all budget factors, the share of cities reporting no impact on the budget was greater for those cities that reported being better able to meet needs in 2011. Except for the cost of employee pensions, the share of cities indicating a major impact was greater among cities that indicated a tougher time meeting needs in 2011. A similar pattern was observed last year. Percentage of cities taking action in broad categories down in 2011 Highlights of this section • Almost all cities (95 percent) reported taking at least one strategy in 2011. The average number of strategies utilized by a city was 3.16. • Except for drawing down reserves, the portion of cities taking action in each category remained the same or fell slightly when compared to 2010. Page 25 How a city responds to fiscal challenges is dependent on a variety of factors. Its response may be shaped by its local tax base, resident needs and preferences, services provided and their delivery methods, local ordinances and policies, state laws and mandates, and opportunities for raising revenue. A city's response is also shaped by the unique mix of challenges it must respond to. Some of these challenges create cost pressures while others result in less revenue. Not every strategy is workable for all cities. Cities have lost state aid and credit reimbursement payments annually since 2008. With repeated cuts, many of which occurred mid -year, some cities have adjusted how they prepare budgets. Some have developed budgets that minimize or even eliminate reliance on these payments. Others have prepared budgets that can be adjusted if mid -year cuts occur. Cities may also undertake new strategies as they struggle to meet needs amidst numerous fiscal challenges. Cities were asked to identify the strategies taken in 2011 to prepare for 2012. Almost all cities (95 percent) reported taking at least one strategy in 2011. The average number of strategies utilized by a city was 3.16, slightly lower than in past years (see Table C). Cities may indicate no change on a particular strategy. Compared to 2010, the share of cities that did not take action in 2011 increased for most strategies. Almost 60 percent of cities reported undertaking between one and three strategies in 2011. This is slightly higher than in 2010 and 2009 when roughly half reported three or fewer strategies. Table C: Number of budget -balance actions employed by Minnesota cities in 2011 Most of the strategies cities are asked about can be grouped into broad categories. Trends in these categories for the past 9 years are shown in Table D. Property tax increases and increases in fees, charges, and license fees make up the revenue increases category. The spending category is comprised of cuts in infrastructure, public safety, and other spending as well as reductions in the overall growth rate of spending. Increases to productivity levels, contracting out or privatizing, and increasing inter -local agreements are included in the increasing efficiencies category. Table D: Budget -balancing actions taken by Minnesota cities (2003-2011) Implemented in 2011 Average number of strategies per city 3.2 1 - 3 strategies 263 cities, 59% respondents 4 - 6 strategies 129 cities, 29% respondents 7 - 10 strategies 36 cities, 8% respondents No reported strategies 21 cities, 5% respondents Most of the strategies cities are asked about can be grouped into broad categories. Trends in these categories for the past 9 years are shown in Table D. Property tax increases and increases in fees, charges, and license fees make up the revenue increases category. The spending category is comprised of cuts in infrastructure, public safety, and other spending as well as reductions in the overall growth rate of spending. Increases to productivity levels, contracting out or privatizing, and increasing inter -local agreements are included in the increasing efficiencies category. Table D: Budget -balancing actions taken by Minnesota cities (2003-2011) Page 26 Revenue increases Spending decreases Increasing efficiencies Workforce cuts Service cuts Draw down reserves FY2003 85% 55% 33% 26% 20% 60% FY2004 84% 47% 34% 22% 15% 46% FY2005 83% 12% 32% 5% 9% 33% FY2006 83% 11% 31% 5% 3% 31% Page 26 FY2007 85% 12% 32% 6% 6% 32% FY2008 76% 32% 26% 15% 13% 47% FY2009 70% 46% 29% 26% 16% 44% FY2010 71% 35% 30% 25% 16% 35% FY2011 68% 32% 30% 20% 11% 40% Except for drawing down reserves, the portion of cities taking action in each category remained the same or fell slightly when compared to last year. The share drawing down reserves grew after decreasing for two years. Cities may be left with only this option after exhausting all other budget - balancing actions viable for the community. The state auditor recommends that cities maintain a fund balance of roughly 35 to 50 percent of operating revenues or no less than five months of operating expenditures. 13 Additionally, a city may set a policy regarding the minimum fund balance allowed. Cities may also utilize reserves transferred from enterprise funds such as a liquor store that turns a profit. While the share of cities implementing spending decreases fell for the second year in a row, this does not mean that cities are spending more. Almost 80 percent of cities reported no change in at least one of the actions that comprise the spending decreases category. Some cities may not be able to continually cut spending in certain areas without compromising service levels. Many cities have already implemented spending cuts and are already operating at bare bone levels. The shares of cities reporting increases in infrastructure and public safety spending grew slightly over 2010 (see Table E). Some cities have experienced increased costs associated with continually delaying infrastructure improvements. Other cities have utilized grant money to fund projects or services such as public safety. Table E: Specific budget -balancing actions taken by Minnesota cities (2007-2011) The proportion of cities implementing tax increases is down for the fourth year in a row. Cities with populations over 2,500 were subject to levy limits for taxes payable in 2009, 2010, and 2011. However, cities of all sizes have made the policy decision to reduce or hold taxes steady out of recognition of the economic challenges facing taxpayers. For 2012, city levies statewide increased just 0.9 percent, the smallest levy increase in at least 15 years. 14 Changes in the share that reported taking actions are very slight for many categories. This may be partially reflective of the fact that a 13 "Statement of Position: Fund Balances for Local Governments (GASB 54 Version)," Office of the State Auditor, Dec. 2010. 14 "Certified Property Tax Increase at Near Record Low Levels," Cities Bulletin, Feb. 8, 2012. Page 27 Increase in taxes Increase in fees/charges Decrease in growth rate of spending Decrease in infrastructure spending Decrease in public safety s endin Decrease in other spending Increase m number/scope of inter -local agreements FY2007 79% 36% 5% 6% 3% 4% 12% FY2008 67% 36% 14% 20% 11% 18% 13% FY2009 61% 35% 30% 21% 17% 33% 13% FY2010 60% 37% 20% 14% 13% 23% 14% FY2011 55% 33% 18% 12% 10% 17% 17% The proportion of cities implementing tax increases is down for the fourth year in a row. Cities with populations over 2,500 were subject to levy limits for taxes payable in 2009, 2010, and 2011. However, cities of all sizes have made the policy decision to reduce or hold taxes steady out of recognition of the economic challenges facing taxpayers. For 2012, city levies statewide increased just 0.9 percent, the smallest levy increase in at least 15 years. 14 Changes in the share that reported taking actions are very slight for many categories. This may be partially reflective of the fact that a 13 "Statement of Position: Fund Balances for Local Governments (GASB 54 Version)," Office of the State Auditor, Dec. 2010. 14 "Certified Property Tax Increase at Near Record Low Levels," Cities Bulletin, Feb. 8, 2012. Page 27 different mix of cities responds to the survey each year. It may also provide further support of the idea that cities are adjusting to the new normal and adapting to meeting different challenges. The share of cities implementing efficiencies increased over the share doing so in 2010. While cities have engaged in these types of activities for years, there has been renewed push for cities to examine these types of strategies. Innovation and redesign have become hot topics in recent years. Cities may pursue new ways of doing things or engage in collaboration with other entities instead of or in addition to other budget -balancing strategies. However, barriers to collaboration can be difficult to overcome, and not all strategies are viable for all cities. Human resource -related reductions are another way cities may meet budget challenges. The share of cities implementing these types of actions fell to 61 percent from 70 percent in 2010 (see Table F). The share of cities taking each action in 2011 fell for the second year in a row. After several years of not increasing employee wages, some cities are beginning to implement increases again. The share of cities granting a wage increase in 2011 grew to 50 percent from 35 percent in 2010. One in five cities reported a workforce reduction in 2011. This may be done through layoffs or by not filling positions left open by retirement or resignation. Table F: Percentage of cities making HR -related budget -balancing reductions 2009 2010 2011 Reduced workforce 26% 25% 20% Cut or maintained wage levels 65% 63% 48% Increased use of furloughs 6% 3% 1% Reduced employee benefits 11% 9% 8% Made at least one HR action 74% 70% 61% The recent NLC survey asked cities about actions taken to address budget challenges. 15 The most common spending -related actions reported by officials nationwide were personnel -related cuts, capital project delays or cancellations, and cuts to services other than public safety and human - social services (72 percent, 60 percent, and 42 percent). The leading revenue -related actions were increases to the level of fees, increases to the number of fees, and property tax increases (41 percent, 23 percent, and 20 percent). Conclusion The share of cities reporting an improvement in fiscal conditions climbed upward for the second year in a row. It must be remembered that the ability to meet needs is a relative measure and does not indicate how well a city is able to meet needs. In other words, conditions may be better than last year but still not "good." After several years of fiscal challenges, cities may have adjusted expectations for their ability to meet needs. Cities have also taken actions—cutting spending, reducing staff, or doing things differently—that have influenced their ability to meet needs going forward. The specific needs may also have changed. After operating in a down, and now recovering, economy for several years, cities are adapting to the new normal. 15 The list of actions cities were presented with differed from that on the Minnesota survey. Cities in different states may have different actions and strategies available to them. Page 28 Like cities overall, the share of cities in each size category reporting an increased ability to meet needs edged upward in 2011. Metro cities were more likely to report better conditions in 2011 than were cities in Greater Minnesota. Cities subject to levy limits in 2011 and those that did not receive LGA were also more likely to report better conditions than those not subject to levy limits and those that did receive LGA. The share of cities reporting a shortfall in 2011 fell across all revenue sources. For some, such as property taxes and state revenues, this share has not decreased in many years. However, for these two sources over 50 percent of cities saw a shortfall. How well a city is able to meet fiscal needs is influenced by changes in a variety of budget factors. This year, the share indicating no change increased over the share doing so in 2010 for many factors. However, the share reporting a decrease in the value of the city tax base increased from just under 50 percent to just under 60 percent in 2011. Just 16 percent of cities saw an increase in the value of the tax base. A city's ability to meet fiscal needs is influenced by how much changes in budget factors impact the city. The top factors identified as having at least a moderate impact on cities' budgets in 2011 are prices, inflation, and cost of living; tax base changes; infrastructure needs; local economic health; and employee wages and salaries. How a city responds to fiscal challenges is dependent on a variety of factors. Cities were asked to identify the strategies taken in 2011 in preparation for 2012. Almost all cities reported undertaking at least one strategy. Except for drawing down reserves, the share of cities taking action in each category remained the same or fell slightly when compared to last year. Page 29 2012 Fiscal Conditions Survey Provision of Police Services Across Minnesota In the last few years, the annual fiscal conditions survey has posed questions related to a topic or topics garnering a lot of attention in the media and at the Legislature. Previous surveys have featured questions on fund balances; ability to secure financing through issuing bonds; mandates; and unintended consequences of budget -balancing actions. For 2012, the survey included questions related to police service. Specifically, city officials answered questions about how their city provides police services. How cities provide police services Nearly all of the city officials who completed the four main questions that have made up the fiscal conditions survey since it began in 2003 answered this question: Please indicate which of the following statements describes how police services are provided in your city. That statement was followed with a list of different service delivery methods, complete with examples to make each option as clear as possible. Chart A below shows how the 443 responses break out: Almost 40 percent of responding cities have their own police department and that department serves only their community. Roughly a third of cities have no police department of their own but do contract with their county sheriff for law enforcement services. We did not ask for specifics related to county contracts such as cost of the contract and what services are included. One in five Page 30 Chart A: How Minnesota cities provide police services 45% 40 35 30% 25 20% 15% 10% 5% 0% Own department; serves only city Own department, other cities contract for services Joint No No Own department department, department, department contract for contract with plus county service with county contract city No department or county contract, just basic county Almost 40 percent of responding cities have their own police department and that department serves only their community. Roughly a third of cities have no police department of their own but do contract with their county sheriff for law enforcement services. We did not ask for specifics related to county contracts such as cost of the contract and what services are included. One in five Page 30 cities has neither their own department nor a contract with their county sheriff for protection. Instead, these cities rely on whatever baseline services the county provides to communities within county boundaries. City size plays an important role in determining how a city provides police services. Looking at cities with populations above and below 2,500, you notice some key differences, as Chart B shows. As a group, large cities (those over 2,500 in population) are much more likely to have their own police department that serves only their community. About two-thirds of these large cities provide police services in this way. Roughly 20 percent of these large cities do not have a department and instead maintain a contract with their county sheriff. Only 1 percent of cities over 2,500 in population do not maintain a city police department, instead relying on basic county services. By contrast, roughly one out of every three cities under 2,500 in population opts to rely on the services the county provides and does not have a department or a county contract. Another third do not have their own department but do contract with the sheriff. In total, therefore, more than 60 percent of the responding cities under 2,500 in population do not have their own department. Only 25 percent of cities under 2,500 in population do operate a city police department. Looking at cities with populations above and below 500 that responded to the survey (there are 360 Minnesota cities with fewer than 500 residents, according to 2010 census data) shows an even more stark divide. Fully 86 percent of cities under 500 in population do not have their own department. Only 40 percent of these maintain a contract with the county sheriff for law enforcement services. About 56 percent of cities over 500 in population have their own police department. Only 3 percent of cities over 500 in population rely on basic county services with no contract and no department of their own. 80% 70% 60% 50% 40 30% 20% 10% 0% Chart B: Police service in cities over and under 2,500 population Own Own Joint No No Own No department; department, department department, department, department department serves only other cities contract for contract plus county or county city contract for service with with county contract contract, services city just basic ■ over 2,500 ■ under 2,500 Page 31 Chart C shows the pattern of police service division by geographical location—whether a city is in the seven -county metro area or in Greater Minnesota. Nearly half of the metro cities responding to the survey (46 percent) report having their own police department serving only their city. In outstate Minnesota, that figure is slightly lower at 38 percent. The more significant difference comes when looking at cities that don't have any department. Greater Minnesota cities are more likely to not have their own police department. A quarter of cities in outstate Minnesota gave this response. Only 4 percent of metro cities did so. Responses in the other categories of police provision were fairly similar between metro and greater Minnesota cities. 50 45 40 35% 30 25% 20 15% 10% 5% 0% Chart C: Police services in metro and in greater Minnesota cities Own Own Joint No No Own No department; department, department serves only other cities city contract for services ■ 7 -County Metro Area department, department, department department or contract for contract with plus county county service with county contract contract, just city basic county ■ Greater Minnesota Past police service changes The 2012 survey also asked city officials to indicate whether the way in which they provide police services has changed over the last 10 years. Sixty-seven percent (296) of the responding cities indicated that they have not made changes to the way service is provided over the last 10 years. A third (33 percent) of cities reported that police service provision in their communities has changed. As shown in Chart D, 180 cities offered some comments on the nature of those changes. The most common change was a reduction in staff, including paid officer positions. Sixteen percent of the cities that reported making changes indicated that this had occurred in their communities. Twelve percent indicated that their city had entered into a new contract with their county for law enforcement services, and 10 percent described a new cooperative agreement for police services, often with at least one other city. Equal numbers mentioned decreasing and increasing service coverage within their cities. Eight percent of cities seeing change over the last 10 years commented that they had improved the service. Some of the improvements described included streamlining operations, adding new prevention programs, and using new technologies. Page 32 Chart D: Changes to police services over last 10 years Ended contract with the county Added positions Improved service (e.g., added new program) Eliminated department Increased coverage Decreased coverage Entered cooperative agreement Entered new contract with the county Cut positions 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Future police service changes Very few of the cities that responded to the police service questions indicated that they were considering future changes to the way that police service is provided. Only 18 percent are looking at making adjustments. Of the 81 cities looking to make possible changes, 20 of them are considering cutting back on service coverage. Ten cities mentioned cutting officer positions. A quarter of the cities are considering a new cooperative agreement with another local government, and 14 percent are looking at contracting with their county. A handful of cities mentioned changes like using new technologies and adding positions. Conclusion The topic of how cities provide police protection in their communities is one often visited by legislators and the media. This survey was one attempt at gaining some understanding of the different ways that cities deliver police services. Further research is needed to learn about the details of the contractual and cooperative arrangements that cities have in place. In particular, determining the population served and how the costs of police services are spread among different entities and taxpayers would be useful. Page 33 MINUTES WAYZATA COMMUNITIES IN COLLABORATION COUNCIL March 14, 2012 PRESENT Becca Fink, Kristin Tollison, Amy Parnell, Cheryl Polzin, Gloria Lundberg -Jorgenson, Susan Sommerfeld, Brenda Heim, Linnea Fonnest, Maria Sanchez, Katie Jackelen, Donna Marget, Warren Watson, Charlene Barghim, Angela Haseman, Rochelle Olson, Christina Ruiz, Becky Halvorson, Judy Hanson, Marcia Treno, Alison Nisbet, and Margy Herbert. CALL TO ORDER • Becca Fink called the meeting to order, welcomed guests and speakers, and invited everyone to introduce themselves at their tables. FEBRUARY MINUTES • The minutes were approved, as written. THE STATE OF CHEMICAL HEALTH IN THE WAYZATA SCHOOL DISTRICT • Alison Nisbet, ACL (Alternative Learning Center) Coordinator: Students referred to ALC, struggling for various reasons. Goal is for students to be successful, individualized programs. • MN State Statute identifies ALC students as performing below peers, struggling with emotional/social health, referred by school programs. • Students assigned Student Assistant Teams, professional group decides good placement and goals for a student to be successful. • Continued Learning Plans, required by law, different at each level, trying to create new system, more user friendly, compliance throughout. • Elementary program targeted to before and after school, summer school o Reinforce academic, social and emotional skills o Summer School alternates sites each year, services 400-500 students, not enrichment but reinforcement. • Middle School program targeted after school services, summer school, EMAP/CMAP o Reinforce academic, social and emotional skills 0 7th and 8th grade program, smaller class sizes, math, reading and advisory o Targeted services available, funded by State • High School program consists of Focus (9-10 grade), T.A.P. (11-12 grade), Independent Study and Summer School. Page 34 o Focus (91h -101h grade): Less Block scheduling than traditional programs, classes might run all year, shorter time in core classes (skinnies), same credits, moving forward on track, limited to 60 students total, smaller class sizes. o T.A.P. (11th -12th grade): Majority of students spend half time in ALC, half in traditional programs. Core classes, skinnier, smaller class sizes, all classes on terms, allows students to join or leave as necessary, credits given in smaller increments to create winning streaks, new enrollees take class designed to instruct on what it means to be a WHS student. Future planning for success and career. • Judy Hanson, Wayzata School District Chemical Health Coordinator: Youth and Learning and Prevention, Binge Drinking at WPS. • SAP, Substance Abuse Prevention Modules, overview of adolescent use, identify risk factors, prioritizing problems. • MN and Wayzata lower than average abuse across states. • 6 out of 24 students abusing • Cross tabulating the Student Data results will help identify which students abuse more often and help create programs to lower number of students using substances. • Younger abuses risk cognitive development, anxiety and depression, emotional health issues, more likely to be abused and neglected, participate in risky behaviors. • 40% of youth using before age 14 become dependent. • Non abusing students need to speak up for their rights to non -disruptive education, teams, sports, clubs, etc. Perceived that many are using drugs, alcohol. • Co -Occurring problems, mental illness and substance abuse are common in majority of struggling students. • Depression and suicide higher in drinkers versus non drinkers. • Family History of abuse and ADHD generally means higher risk for abuse for youth. • Consequences of under age drinking, death, accidents, growth, crime, academics. • College level prescription drug abuse effecting HS abuse • Trend of synthetic drugs, caffeine/energy drink abuse • Adult/Parent disapproval stronger deterrent for students in substance abuse. • Alcohol more accepted as social norm, students abuse more often. COMMUNITY UPDATES Hennepin County Library (Plymouth) • Linnea Fonnest stated that the spring season programs are beginning. o Citywide Read Kick Off began March 3rd, "Under a Flaming Sky" by Daniel James Brown, Hinckley Fire Museum Tour, Saturday March 10th, Book Discussion Saturday March 24th, Literary Night/Meet the Author, Sunday April 15tH www.plymouthartscouncil.org o Paint it Green, Inventors' Workshop, Sunday, March 25, 1-2 p.m., grades 3-6. o Creative Writing for Kids: First Pages for Kids series, www.hclib.org Page 3 5 CfKI 11 ►�_1 o Mothers Who Write: A panel discussion, April 24, 7 p.m. o More information on all of these programs can be found at www.hclib.org CfKI Breakfast will be held Thursday, May 3rd, 2012, at the Wayzata Country Club. Speaker is Art Rolnick. Middle School Y Nights for 2011-2012 - Volunteer Opportunities Available: 6:30pm — 9:00pm, Friday, April 13, 2012. Contact Amy Shadis for more information: amy.shadisgymcatwincities.org 952-582-8278. Volunteers needed from 6:30-9:30, contact Becca Fink for additional information or to volunteer. CfKl 6'h Annual Breakfast, Wayzata Country Club, Thursday, May 3, 2012, 7:15-8:30AM Speaker: Mr. Art Rolnick former Federal Reserve Bank Mpls. Senior VP of Research and currently Senior Fellow at U. of M. Humphrey Institute. Mr. Rolnick speaks of the investment in quality early childhood programming as economic investment with a high rate of return. Ridgedale YMCA Cycle-a-Thon, March 24`h from 1:00 — 3:00 Cyclers are encouraged to raise $100 to participate and can cycle for 25 minutes up to 100 minutes! Contact Peggy for more info at peggy.kellemskymcatwincities.org Book Sale, March 23 — 31, Y Partners Fund Raiser Come to buy books or donate your old books now! Healthy Kids Day, April 281h 9:00 — noon Healthy Activities for the whole family! Everyone is welcome. Next Meeting- Wednesday April 11, 2012, Andi Egbert, Minnesota State Demography Department. The meeting was adjourned at 4:00 PM. Respectfully submitted, Margy Herbert Page 36 Approved Minutes City of Plymouth Planning Commission Meeting February 15, 2012 MEMBERS PRESENT: Chair James Davis, Commissioners Dick Kobussen, Gordon Petrash, Bryan Oakley, Scott Nelson and Marc Anderson MEMBERS ABSENT: Commissioner Nathan Robinson STAFF PRESENT: Planning Manager Barbara Thomson, Senior Planner Shawn Drill, Senior Planner Marie Darling, Senior Planner Joshua Doty, Public Works Director Doran Cote and Office Support Representative Janice Bergstrom 1. CALL TO ORDER - 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. PUBLIC FORUM 4. APPROVAL OF AGENDA Planning Manager Thomson added Item 7.A. Cancellation of March 7, 2012 Planning Commission Meeting. MOTION by Commissioner Petrash, seconded by Commissioner Kobussen, to approve the modified February 15, 2012 Planning Commission Agenda. Vote. 6 Ayes. MOTION approved. 5. CONSENT AGENDA A. APPROVAL OF THE FEBRUARY 1, 2012 PLANNING COMMISSION MEETING MINUTES MOTION by Commissioner Petrash, seconded by Commissioner Kobussen, to approve the February 1, 2012 Planning Commission Meeting Minutes. Vote. 6 Ayes. MOTION approved. 6. PUBLIC HEARING A. GWS LAND DEVELOPOMENT OF PLYMOUTH LLC (2011095) Chair Davis introduced the request by GWS Land Development of Plymouth, LLC for rezoning to RSF-3 and preliminary plat for "Terra Vista" for 128 single family lots at the southeast corner of County Road 47 and Dunkirk Lane. Page 37 Approved Planning Commission Minutes February 15, 2012 Page 2 Senior Planner Darling gave an overview of the staff report. Senior Planner Darling discussed the revised resolution which reflects the applicant's proposal to construct Dunkirk Lane in phases. She said the revised resolution also affects future street access to the properties at 5915 and 5955 Dunkirk Lane. She said the applicant reviewed the steep grades on the east side of the existing Dunkirk Lane and said they cannot construct a roadway to meet city standards for this short road segment. She said the applicant proposes a full right-of-way to the adjacent property owner's where the existing driveways are located. Senior Planner Darling said the grade situation is better and either property owner would be able to construct a roadway when they choose to develop. Chair Davis introduced the developer, Dave Gonyea, GWS and Gonyea Company who thanked staff and said they did a good job. Commissioner Nelson asked if the developer would bear the cost of rebuilding the extension of the two affected driveways. Mr. Gonyea answered affirmatively. Commissioner Nelson asked if there is any activity on the land between Terra Vista and Spring Meadows 2 and if it is privately owned. Mr. Gonyea said they have a preliminary plat on the north half of the Spring Meadows development, there are three 10 -acre privately owned parcels, and the city owns a parcel. Commissioner Anderson asked what the grade would be after the Dunkirk Lane rebuilding. Bob Molstad, Sathre-Berquist, Inc. said the resulting grade would be 6%. Mr. Gonyea stated they would be adding turn lanes at County Road 47. Commissioner Kobussen asked when the driveways and street construction would occur. Mr. Gonyea said their intention is to put in the driveway and leave the right-of-way there. He said he is unsure how 5915 Dunkirk Lane will develop and said that access could be extended from the south if everyone develops at the same time. Mr. Gonyea said they will leave enough right-of-way on Dunkirk Lane so that the owner of 5915 Dunkirk Lane could curve the new road and save the house and develop around it. Commissioner Kobussen said there doesn't seem to be an advantage of having the emergency exit right-of-way. He said the likelihood of it ever being used is low, and it may be better to construct it down the narrow strip of land that goes to Vicksburg Lane. Mr. Gonyea said if the road ever got blocked, there is another way in and out of the development. He said the narrow strip to Vicksburg is proposed to be dedicated for the Northwest Greenway. Page 38 Approved Planning Commission Minutes February 15, 2012 Page 3 Commissioner Kobussen asked about the three outlots proposed. He asked if Outlet A would be connected to another lot at this time. Mr. Gonyea said two outlots would contain park trails. He said they would need to show access to the larger outlot in the 3rd phase of development. Senior Planner Darling said that with the third phase the developer would have to show the outlet combined with one adjacent lot to the south so there would be public access or show access with the property to the east if it has developed. Commissioner Petrash asked about the time frame between phases of the project. Mr. Gonyea said they anticipate working on Phase 1 - the north piece- in 2012, Phase 2 — the southern piece — in 2013, and Phase 3 — the eastern side — in 2014. Mr. Gonyea said this is an estimate, and it is based on selling the lots. Commissioner Nelson asked if grading would be completed by phase or all at once. Mr. Gonyea said they would grade all of Phase 1 and part of Phase 2 as some of the dirt from the hill in Phase 2 would be needed to balance the Phase 1 area. Commissioner Nelson noted there will be a highly elevated area which will be disturbed and expose dirt; he asked how the dust and dirt would be controlled. Mr. Gonyea said the grading permit has requirements that turf has to be re-established. He said there would be a silt fence around the wetlands and the entire site. Chair Davis asked about the city property and the future park. Senior Planner Darling said the property to the southwest was acquired for an extension of the Northwest Greenway. She said the parcel across the street and a portion of the western lot provide some additional land for buffering from the dog park. Senior Planner Darling said the trail corridor will wrap around the large wetland basin and as land is acquired, the trail will be extended through the two city parcels and eventually across Vicksburg Lane. Senior Planner Darling said the comprehensive plan identified a neighborhood park further south which would be accessed by Dunkirk Lane. Planning Manager Thomson added that the city has looked into purchasing the Begin property on the southeast side of this plat for the 10th playfield. Commissioner Kobussen asked about sewer and pond access, particularly the southwest pond. Mr. Gonyea said two storm ponds would have access from County Road 47. Mr. Molstad said the southwest pond would be accessed off the trail. Page 39 Approved Planning Commission Minutes February 15, 2012 Page 4 Commissioner Kobussen said he assumes all dead end streets will have turnarounds until the streets are connected. Mr. Gonyea said Fire Inspector Stan Scofield said if they are less than 150 feet from where you can get a hammerhead, then you do not need a temporary cul-de-sac but the others would have turn-arounds. Chair Davis opened the public hearing. Chair Davis introduced Paul Hetchler, 5855 Dunkirk Lane. Mr. Hetchler said he and Steve Roell, 5915 Dunkirk Lane, have discussed their driveways and access. Mr. Hetchler said he heard access to his property would be an extension of 59th Avenue so access to Mr. Roell's future lots would not affect his house. He said on February 13, 2012 something changed regarding that issue. He stated the explanation given was that the grade change was too much to make it workable, but he seriously doubted that. Mr. Hetchler asked what the grade maximum change is. Mr. Hetchler said from a safety perspective, he and his neighbors thought the proposal that included eventual alignment with a road to Roell's by way of coming across at 59th Avenue seemed to be a good proposal. Mr. Hetchler said he had spoken to staff about the possibility of putting a "T" on his driveway to eliminate backing out onto a curve and a higher volume traffic roadway. He requested that we leave the gravel so he can make a turnaround and access Dunkirk Lane resulting in improved safety conditions for his family. Mr. Hetchler said he hopes to maintain a second driveway as it accesses the barn, and they can move equipment in and out as they currently do. Chair Davis introduced Paul Wardell, 16395 County Road 47. Mr. Wardell said currently the water flow goes north, northeast across the property 16405 County Road 47, then onto his property and into a pond. Mr. Wardell said he is concerned that replacing dirt with hard surfaces and filling a wetland will cause erosion on his property. Mr. Wardell said farming practices on the subject property resulted in open water being filled in and now there is only swamp. Mr. Wardell said it is hard to determine the post development and pre -development runoff rate when there were 100 inches of snow last year compared to this year. Mr. Wardell asked about runoff during development. Mr. Wardell said he is not opposed to the development, but said he is concerned that if there is damage to his and Mr. Reinke's properties by this water runoff that the city will say we did some damage and will compensate. Chair Davis introduced Bob Schoeneberger, 16845 County Road 47. Mr. Schoeneberger said on February 13, 2012 he was told that 59th Avenue would be continued so it would be possible for his property to have access from extended 59th Avenue rather than County Road 47. Mr. Schoeneberger said the county has talked about closing off as many driveways as possible for safety which necessitates an alternative access, probably Dunkirk Lane. Mr. Schoeneberger said once there are dwellings on the northwest corner, there is no longer an option to access Dunkirk Lane for further development. Mr. Schoeneberger said for the three property owners along County Road 47, the possibility of developing becomes more difficult if there is no old Dunkirk Lane. Mr. Schoeneberger said these are the implications and asked why the roadway location changed so recently. Page 40 Approved Planning Commission Minutes February 15, 2012 Page 5 Chair Davis introduced Sarah Amelotte, 5905 Terraceview Lane. Ms. Amelotte said she has noticed a lot of building in the area and has general concerns about traffic on Vicksburg Lane and County Road 47. Ms. Amelotte noted that Maple Grove appears to have prebuilt the roads and has a four -lane roadway and stop lights ready to handle traffic. She said that she has heard Plymouth would need federal funding for the railroad tracks but that won't happen until 2014 and now there could be another 128 homes. Ms. Amelotte asked how school district communication occurs when another 128 homes are built in the Wayzata School District. She said she was unable to find all day kindergarten at Plymouth Creek and had to send her child to a private school. Chair Davis closed the public hearing. Planning Manager Thomson asked about the grade change maximum on 59th Avenue. Senior Planner Darling stated the maximum grade change for local streets is 7%. Senior Planner Darling discussed the safety issue at 59th Avenue. She said previously the road was to be continued to provide a stub to 5915 Dunkirk Lane. She said the applicant has pointed out grades make it very challenging to get a road to 5915 Dunkirk Lane and then into that property. Senior Planner Darling said the applicant proposed to place a 50 -foot right-of-way further south where grades are more amenable to construct a road to city standards to serve either of those properties or further west if they develop in the future. She said the Engineering Department has no concerns with Mr. Hetchler keeping a segment of Dunkirk Lane as a turnaround for both property owners, and suggested Mr. Hetchler discuss that with the applicant. Commissioner Petrash said it would be challenging to continue 59th Avenue and asked if it can be done. Public Works Director Cote responded that generally speaking there is nothing that can't be done - but how difficult and how costly would it be. He said in this case, putting in the access roadway across from 59th Avenue when taking into consideration the property to the west and what the roadway has to do beyond Dunkirk Lane proves to be more challenging. Public Works Director Cote said what the applicant has proposed would be easier with respect to developing the properties to the west. Commissioner Nelson asked if moving the extension further to the south assumes that the house has to go when that development occurs. Public Works Director Cote said there are some opportunities between the Lot 5 house pad and these two houses to curve a road so that it could continue to the north similar to the old Dunkirk Lane, and then to the west. Commissioner Oakley said the applicant's grading plan indicates that a drop from the end of the proposed road to the property line is four feet aiming at a ridge. He said the alternative is to move the road south and then curve north to end up in the same place. Commissioner Oakley Page 41 Approved Planning Commission Minutes February 15, 2012 Page 6 said it is more difficult to make the second alternative work than the first alternative. He said if 59th Avenue is extended there is still potential curving back to the south as opposed to the new proposal pointing straight north at a grade that is impossible to build on. Commissioner Oakley said he thinks staff had it right the first time and said the alternative is not an improvement over the situation. Commissioner Kobussen said he looked at the site and said there is a 50 -foot drop on the west side of Dunkirk Lane where 59th Avenue would go through. Commissioner Kobussen said he didn't think there is a way to put a road in at that point and suggested moving it further south. Commissioner Kobussen said he would like to see the southern driveway tied into the street right-of-way and make a wide enough turnaround for backing in and out to access Dunkirk Lane straight on. Commissioner Anderson noted there are ghost plats on the properties to the east and said intelligent thought was put into how roads and cul-de-sacs tie into those properties. He asked why we are not seeing a ghost plat with this proposal for development to the west. Planning Manager Thomson addressed the safety issue and said Dunkirk Lane is a minor collector and would not present a large safety concern. Public Works Director Cote concurred. Mr. Gonyea discussed water flow and said all the sites are designed to accommodate any additional runoff. He indicated there are NURP ponds and drain tile hooked back to the storm sewer. Mr. Gonyea stated that the site is designed so post development runoff, including that in the northeast area, should be less than what you are seeing now. Commissioner Anderson said runoff rules are to be equal or less for post development runoff, and asked if that is true specifically in this case for those properties. Mr. Gonyea said there are rain gardens, catch basins and extra effort has been put in to make sure there is no extra water flowing east, northeast. Mr. Molstad, Sathre-Berquist (the developer's consulting engineer) added there are two infiltration basins, plus they have extended storm sewer in both back yards to drain directly north to a pond. They have modeled this separately and have completed and sent in the storm water model to the city and watershed for review and comments. Commissioner Anderson asked if the runoff rate is equal or less than the current runoff in that location. Mr. Molstad answered affirmatively. Mr. Gonyea commented that part of the roadway issue is the 60 feet of fall to the west; to bring a road around the house at 5915 Dunkirk Lane would take a monumental amount of dirt. He said they can provide additional right-of-way so they can get a road alignment to curve and line up with the old Dunkirk alignment and still keep a full setback from the two existing houses to the new road. If we continued 59th Avenue, a road may never get extended to the west and you'd have a road running between two houses. Page 42 Approved Planning Commission Minutes February 15, 2012 Page 7 Mr. Gonyea said the zoning to the west of the proposed development is one lot per acre, and he said as a developer they would not envision doing a ghost plat there with the amount of fill that would be required. He said they could do some ghost platting but would not put a road through a 50 -foot ravine. Commissioner Petrash asked if there have there been alternative plats that would address moving 59th further south. He said it seems like we are working into a point where there is a problem and suggested solving the problem to make the plat work. Mr. Gonyea said they were not aware of any conditions connecting the road to the west until a week ago. He said they would never envision putting a road into those type of grades. He said there are properties every 300 feet on Dunkirk Lane; they tried to accommodate a solution for the neighbors if that did happen and not leave a dead end road sitting there for the city if this property develops in a different direction. Commissioner Petrash said as a developer you would ideally develop the road further south. He asked if a plat could be developed that has 59th Avenue moved further south so it becomes more of a straight in access to a ghost plat. Mr. Gonyea said moving the road further south would not affect Mr. Hetchler as this property would continue to be directly accessible to Dunkirk Lane. This stub is strictly to accommodate the neighbor at 5915 Dunkirk Lane. Planning Manager Thomson clarified the issue is providing access to the singular property. She said others still have access to Dunkirk Lane. Planning Manager Thomson said because these are five -acre parcels, it would take everyone working together to form a single plat. Commissioner Oakley asked about the storm water runoff during construction. Mr. Gonyea said there would be silt fences and culverts protected by bales until the storm sewer is in. Mr. Molstad said as we prepare a final grading plan for Phase I we will have an erosion control plan that would be submitted to the city for review, an NPDES storm water permit from the PCA, an erosion control review with the watershed, and there would be a weekly site walk with the city and after every half-inch rainfall. Planning Manager Thomson said that Mr. Schoeneberger would have access provided to his property in the future, but it would not come necessarily from this property. Public Works Director Cote discussed traffic and roadway development in the city, and said the city's five-year capital improvement program includes upgrades to Peony Lane and Vicksburg Lane. He said that County Road 47 is a county road and the city cannot control when upgrades are made. Public Works Director Cote said there have been discussions regarding jurisdictional transfer of County Road 47 to a city street, but that has not taken place. He said the City Council is very aware of the situation in northwest Plymouth and has asked staff to come back in the next Page 43 Approved Planning Commission Minutes February 15, 2012 Page 8 six to eight months with a full infrastructure review north of the existing development and west of Dunkirk Lane. Commissioner Petrash discussed how quickly the city is expanding with development, and asked if the infrastructure such as schools and traffic are lagging. He said we are dealing with the development piece by piece and questioned the commission's responsibility on how to put the pieces together. Commissioner Petrash said he is concerned about Vicksburg Lane and the roads are difficult to navigate at times. He said it seems like we are creating a greater problem by looking at pieces separately without looking at the big picture. Planning Manager Thomson said the 2030 comprehensive plan did look at development based on the type of land uses proposed and the kinds of improvement needed. She said transportation improvements generally follow development, and added in this case there are plans to make upgrades to accommodate the growth that would be anticipated in the area in the upcoming years. Commissioner Petrash asked if there have been traffic studies done on these roads as there is a variety of vehicles and speeds and there are nervous people on the same road. He said we should find some way to express ourselves. Commissioner Anderson said he is concerned about County Road 47 and said portions of County Road 47 were upgraded and funded by the developer when Legacy Park went in. He asked what is happening on County Road 47 west of Vicksburg in terms of the city collecting anything from developers. Commissioner Anderson said the county has put their head in the sand and they want to give the road to the city. Public Works Director Cote said this applicant is required to upgrade the intersection where they access County Road 47. He said the Taryn Hills development did upgrade County Road 47 as they were the first one in and it was required to be upgraded that time. Public Works Director Cote said this parcel is not necessitating an improvement to the Vicksburg Lane intersection. Chair Davis asked if there would be a traffic light at Dunkirk Lane and County Road 47. Public Works Director Cote said not at this time. Chair Davis asked if a signal would be put in as development progresses in this area. Public Works Director Cote said the threshold for a traffic signal on county roads is very high. He said 128 homes would not dictate the need for a traffic signal. Public Works Director Cote said when this road connects to Schmidt Lake Road, it may dictate a need for a traffic signal. Planning Manager Thomson said that the city and school district are in communication regarding development occurring in the city. Page 44 Approved Planning Commission Minutes February 15, 2012 Page 9 Senior Planner Darling said Mr. Hetchler asked about retaining the second driveway connection on the west side. She said there would be no changes to close off that particular. Chair Davis asked if the second driveway would need to be upgraded to a paved surface after Phase I. Senior Planner Darling responded that gravel is considered an acceptable driveway for single family homes. Commissioner Petrash asked Mr. Gonyea if potential home buyers are aware that Plymouth people are not getting into the Wayzata schools. Mr. Gonyea said there are in constant contact with the school district. He clarified that the all day kindergarten is not available to everyone, but there is plenty of capacity for other students. He said if there were issues and there was demand, a new school could be built on property the school district owns to the north and west. Chair Davis asked about the plan for development on the west side. Senior Planner Darling said the four parcels on County Road 47 are guided LA -R2 and can have two to four units per acre. She said Mr. Hetchler's property and those further south are LA -RT which could have one unit per acre. Planning Manager Thomson added for development to happen to the west, the property owners would have to work together as grading issues complicate development. Commissioner Petrash reiterated that the concerns and a sense of urgency regarding the developments, streets and schools should be carried to the county or city council. He said he is concerned about us looking at all the little pieces and what if the puzzle doesn't come together. Commissioner Oakley said the issue with the road concerns him; he said after listening to comments he agrees with the developer that it is easier to access a conglomerate of properties further south on Dunkirk Lane. He said he is disturbed to hear there would be two types of land uses at a good access point but this could be changed if a group of property owners carne together. Planning Manager Thomson said the guiding on the west side was driven by property owners' desires at the time we did the comprehensive plan. She said if a property owner wants to develop in a different fashion, we would look at that. Commissioner Oakley said he wished this detail would have been addressed here as the rest of the plan is well thought out. Commissioner Oakley said he appreciates the engineer's explanation of the storm water system, both finished and during construction. He said there would not be a problem of too many houses in too small of a space. Commissioner Oakley said he would support the proposal even though the road is not exactly where he wished it was. Commissioner Anderson said he sees a lot of things he likes such as the emergency access points and trails. He said he is not concerned about runoff as that would be regulated and the ponds Page 45 Approved Planning Commission Minutes February 15, 2012 Page 10 will handle runoff adequately. Commissioner Anderson discussed the driveway location and said we can't land lock anyone. He said the new location further south of 59th Avenue and swinging a road to the north means it would hit perpendicular on the slopes. He said if 5911' Avenue were continued to the west and curved to the south, there would be an opportunity to do something. But the slopes behind that house are excessive. Commissioner Anderson said no matter where the road is, the house would have to come out, possibly squeezing in a couple lots. Commissioner Anderson acknowledged this is a tough situation and said he thinks the extension from 59th Avenue may give it greater flexibility, which is the desire of Mr. Roell. Commissioner Anderson said he would like to see it in that location and he supports the rest of the proposal. MOTION by Commissioner Nelson, seconded by Commissioner Kobussen, to approve the request by GWS Land Development of Plymouth, LLC for rezoning to RSF-3 and preliminary plat for "Terra Vista" for 128 single family lots at the southeast corner of County Road 47 and Dunkirk Lane. Motion for an amendment by Commissioner Anderson, seconded by Commissioner Oakley, to approve the extension into the Roell property from the extension of 59th Avenue. Roll Call Vote. 3 Ayes. Amendment failed. Commissioners Kobussen, Petrash and Chair Davis voting nay. Chair Davis said he is not against the proposed idea, but it is such a major idea that plans would have to be reworked and he is not prepared to throw out the proposal for just that. Commissioner Anderson said moving the road 100 feet north is not a big change. He said his point is that the commission is mixed on this issue and that should be passed on to the City Council. Commissioner Anderson said we should move ahead with the proposal. Chair Davis said he sees the benefit of the road on 59th going across and being a possible connector but he is also cognizant of the grading issue. He said he is not a civil engineer and he is hesitant to impose a requirement like that. Roll Call Vote. 6 Ayes. MOTION approved unanimously. B. ALLINA HOSPITALS AND CLINICS (2011099) Chair Davis introduced the request by Allina Hospitals and Clinics for a PUD amendment for an expansion to the WestHealth building and preliminary plat for one new lot at 3005 Campus Drive. Senior Planner Darling gave an overview of the staff report. Chair Davis introduced the applicant, Bob Solfelt, Director of Real Estate Development for Mortenson, who said he and his staff are in agreement with the staff report. Page 46 Approved Planning Commission Minutes February 15, 2012 Page 11 Commissioner Nelson noted they would be busiest after medical offices are closed, and asked if that is the nature of the emergency business or the urgent care. Daryl Schroeder, Allina Health, said they have partnered with North Memorial for the past 17 years and have been running a very busy urgent care center that accommodates 32,000 visits per year. Mr. Schroeder said these visits now are from 8-10 p.m. This emergency department would provide access from 10 p.m. until 6 a.m. Commissioner Nelson asked if patients in this facility would be transported to North Memorial. Mr. Schroder explained that of existing patients that arrive, 5-15% need to be transferred to a location of the patient's choice. He said a patient at this emergency facility would have Abbott Northwestern certified physicians and then they would become patients of Abbott Northwestern hospital. The patient has the choice to disconnect from Abbott Northwestern, but as a rule a patient would elect to continue and go to the next level of care at Abbott. Commissioner Nelson asked if an ambulance service would be coming into this facility. Mr. Schroder said they will work with the North and Allina Health System ambulances who will determine their capabilities as patients are serviced and transferred. The EMT, the ambulance operator, and the patient will determine where they would go, with a tendency to direct them to the closest site. Commissioner Nelson said there is one main drive coming in, and asked if there would be any rules or issues for emergency service vehicles using this entrance. He asked if they would be relegated to one entrance. Senior Planner Darling said there is an ambulance garage on the north side of the building and incoming patients would be triaged directly from the ambulance garage. She said police and fire staff asked that all drive aisles connecting with the main entry have signage, "Yield To Emergency Vehicles" so they will always have the right-of-way in these areas. Senior Planner Darling said there would be two accesses to Campus Drive. Commissioner Petrash asked if the ambulances would be restricted to the north drive or could both drives be utilized. Senior Planner Darling said there are no limitations on ambulance access to the property, but the most convenient and fastest access would be through the northerly drive aisle. She noted the southerly drive aisle is more circuitous and would have more traffic during the day, making it an unlikely ambulance access. Commissioner Kobussen asked who would determine the need for additional parking spaces. Senior Planner Darling explained there would be two options: the applicant can add parking as they find it necessary for their use. She said if parking issues are documented, staff would also Page 47 Approved Planning Commission Minutes February 15, 2012 Page 12 initiate discussions with the property owner to expand parking on site. If there is no response, the council can order changes. Chair Davis questioned why the addition would be on its own lot. Mr. Solfelt said Allina is trying to maintain the most flexibility on the site for future growth and development, and ownership of both the medical office buildings and urgent care. Commissioner Anderson said the new plat has the new building on Lot 1, Block 1, and the rest of the site is Block 2. He said there has to be parking to make it work, so why isn't the parking on Lot 1. Commissioner Anderson said if these had different ownerships and were financed in a different way, somebody could default on the parking lot, resulting in no parking. Senior Planner Darling said the city is requiring cross access parking and maintenance agreements recorded against each of the properties. The agreement would be amended to include the new lot as well. Senior Planner Darling added this type of plat is no different than townhouse or condo plats, where common properties are maintained jointly. Planning Manager Thomson added that the city previously approved the existing buildings on a separate lot. She said this is the same situation as at Lifetime Fitness and the Ice Center. Commissioner Anderson said the proposal would involve removal of many trees, and asked if the tree requirement is for the whole site or specifically for this area being developed. Senior Planner Darling said this property was originally subdivided prior to current tree preservation requirements. She said the PUD looked at tree preservation as a whole through the development and the city council elected to preserve trees primarily along Plymouth Creek north and east of this property. Trees on this property were originally indicated to be removed. Commissioner Anderson said when the pond expands to accommodate, resulting tree removal is grandfathered in. Planning Manager Thomson answered affirmatively. She added when the entire Northwest Business Campus was developed, it was determined which areas would be most important to preserve trees and this area was not one of them. Commissioner Anderson asked if the cell tower is on this property. Senior Planner Darling clarified the cell tower is on this property and is accessed from the property to the north. Commissioner Anderson said he is pleased to see the Allina expansion in our city, and a 24-hour emergency service is a good and needed service for the area. Chair Davis opened and closed the public hearing as there was no one present to speak on the item. Page 48 Approved Planning Commission Minutes February 15, 2012 Page 13 MOTION by Commissioner Oakley, seconded by Commissioner Petrash, to approve the request by Allina Hospitals and Clinics for a PUD amendment for an expansion to the WestHealth building and preliminary plat for one new lot at 3005 Campus Drive. Chair Davis said he hopes to never use this facility but is glad it will be there if he does need it. Commissioner Kobussen agreed it will be a great addition to the community, and said he has used this facility, but had to be moved to another hospital because they did not have the emergency facility at that time. Roll Call Vote. 6 Ayes. MOTION approved unanimously. C. PERFORMANCE POOL & SPA, INC. (2012002) Chair Davis introduced the request by Performance Pool & Spa, Inc. for a conditional use permit to allow accessory retail within an existing industrial building at 2405 Annapolis Lane. Senior Planner Doty gave an overview of the staff report. Chair Davis introduced the applicant, Brett MacNally, who thanked Senior Planner Doty and said he was great to work with. Mr. MacNally said he is excited to come to Plymouth. He said their facilities at Oakdale, Woodbury and Burnsville employ local people, and the Plymouth location would complete the loop of I- 694/494. Commissioner Nelson asked if the other stores have this common layout in an industrial area. Mr. MacNally answered affirmatively, and said access to the freeway frontage is more important than location. He said most customers don't come into the store as they go to the site for pool maintenance. Mr. MacNally said this is a design -type showroom. Commissioner Nelson asked if there is an actual pool in the showroom. Mr. MacNally said it is a 13 -foot x 26 -foot pool, which is smaller than a yard pool. He said the city had an issue with pool depth and this pool will show jets, fountains, and display. Commissioner Anderson asked how the 25% or less retail requirement is determined. Senior Planner Doty said this business clearly has both retail and wholesale elements. He explained retail sales are cash and carry. Senior Planner Doty said the pool, spa, paver samples and display areas indicate a wholesale showroom function, and he said the 25% is essentially the front of the store. Commissioner Kobussen asked if there would be any hazardous chemicals. Page 49 Approved Planning Commission Minutes February 15, 2012 Page 14 Mr. MacNally said yes and the Material Safety Data Sheets (MSDS) will be provided to the fire inspector. He said he assumed Plymouth would have yearly inspections and the records would be on file. Mr. MacNally added these materials would be in extremely small quantities. Senior Planner Doty added that would be part of the building permit process. Chair Davis opened and closed the public hearing as there was no one present to speak on the items. MOTION by Commissioner Kobussen, seconded by Commissioner Anderson, to approve the request by Performance Pool & Spa, Inc. for a conditional use permit to allow accessory retail within an existing industrial building at 2405 Annapolis Lane. Roll Call Vote. 6 Ayes. MOTION approved unanimously. D. CITY OF PLYMOUTH (2011080) Chair Davis introduced the request by the City of Plymouth for the annual update to the zoning ordinance and city code. Senior Planner Drill gave an overview of the staff report. Commissioner Kobussen asked how a restaurant with sit down, take out and drive through is defined. Senior Planner Drill said if a restaurant has a drive-through service window, then it is considered a drive-through restaurant. Chair Davis asked for an example of a homeowner association owned amenity lot. Senior Planner Drill said an example would be the private pool in Terra Vista and other developments where the developer sets aside a lot to be owned and maintained in common by the homeowner's association. He said they often include a pool and a pool house, a jungle gym or other private amenities for the development. Commissioner Kobussen said there is a reference to approval by the "board" for variances, and asked who that is specifically. Senior Planner Drill said the city council is acting as the Board of Adjustments and Appeals when approving variances. Commissioner Kobussen asked if this wording could be changed to City Council. Planning Manager Thomson answered negatively. Senior Planner Drill noted it is referenced elsewhere in the code that the Board of Adjustments and Appeals is the City Council. Page 50 Approved Planning Commission Minutes February 15, 2012 Page 15 Commissioner Petrash said the proposed signage language would be significantly improved. He said he is more conscious of signage and said he sees signage that doesn't meet requirements. Planning Manager Thomson said the basic impetus behind the signage change is it makes sense that every business have a sign. The change eliminates a variance situation, where common sense tells you that a business should be allowed to have a sign by their main entrance. Chair Davis opened and closed the public hearing as there was no one present to speak on the item. MOTION by Commissioner Nelson, seconded by Commissioner Petrash, to approve the request by the City of Plymouth for the annual update to the zoning ordinance and city code. Roll Call Vote. 6 Ayes. MOTION approved unanimously. Commissioner Kobussen commended Senior Planner Drill on getting this organized. 7. NEW BUSINESS Planning Manager Thomson indicated there are no items for the March 7, 2012 Planning Commission meeting. Chair Davis recommended cancelling the meeting. Vote. 6 Ayes. 8. ADJOURNMENT MOTION by Chair Davis, with no objection, to adjourn the meeting at 9:24 p.m. Page 51