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Council Information Memorandum 10-17-2008
CITY OF PLYMOUTH rp) COUNCIL INFO MEMO October 17, 2008 UPCOMING MEETINGS AND EVENTS PACTAgenda 10/22/08........................................................................................................................Page 1 HRAAgenda 10/23/08.................................................................................................. . Page 2 September, October, November 2008 Official City Meeting Calendars ............................................. Page 3 Tentative List of Agenda Items for Future City Council Meetings ..................................................... Page 6 INFORMATION News Articles, Releases, Publications, Etc ... Plymouth Residents Should Apply by Nov. 14 for Commission Seats, News Release ....................... Page 7 A Bus Transit Power Struggle, Article, Star & Trib............................................................................. Page 9 Local Governments Weathering the Financial Storm—So Far, Article, Star & Trib.......................... Page 11 Feeling the Burn Over Back -Yard Fires, Article, Star & Trib............................................................ Page 14 Property Tax Levy Capped, Article, Bemidji Pioneer ............. ....... Page 17 MEETING MINUTES Planning Commission Minutes 10/01/08....................................................... ........ Page 21 STAFF REPORTS ,Engineering Dept. Active & Pending Public Improvement Projects 10/14/08 ................................. Page 36 Hennepin County Adult Correctional Facility Population Report 10/13/08.......................................Page 40 CORRESPONDENCE Letter from Plymouth Middle School, RE: Renovations................................................................... Page 4I Memo from Park & Rec, RE: Plymouth Creek Center Catering Contracts ....................................... Page 42 Letter from Northstar Commuter Rail, RE: Update on the Northstar Commuter Rail Project .......... Page 45 ATTACHMENTS National League of Cities' City Fiscal Conditions in 2008.........................................................................47 Street Lighting Review from Suburban Rate Authority ................................................................... Attached AGENDA PLYMOUTH ADVISORY COMMITTEE ON TRANSIT Medicine Labe Room (upper level of City Hall) Wednesday, October 22, 2008 at 7:00 p.m. Note: PACT Members, please RSVP to the Transit Coordinator at 763-509-5535 or bmaciejL� ci.PV111OUth.mn.us. Action Items- ]. Conduct Dial -A -Ririe Sur vev in Decentber 2. Driver awards in December (with DAR & faxed route sur ve}ys) 3. Route reviews — due in Februeny to PACT for review (776, NW Plpnouth) 4. Measurements ofstartlstop times on Route 776 a.nr. and p.m. in November (tinge to be determined when A VLs are working on buses) .i_ Safety and security issues downtown 1. 7:00 Approval of Agenda 2. 7:03 Approval of September 24, 2008 Minutes (attached) 3. 7:08 Review Action Items from September Meeting (see above) 4. 7:18 December Surveys (will be distributed at meeting) * Dial -A -Ride Survey * Driver Awards * Fixed Route Survey 5. 7:30 Education and Training (Work Plan) James Clark, Messerli & Kramer 6. 8:30 Develop Proposed 2009 Work Plan 7. 8:45 Fleet Update 8. 8:47 Minneapolis (Downtown) Access Plan Update 9_ 8:49 Plymouth Transit Performance Measurements for July (attached) 10. 8:52 Identify areas of concern and/or recommendations (Aug/Sept complaint logs attached) 11. 9:00 Adjournment Page 1 PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY AGENDA THURSDAY, OCTOBER 23, 2008 - 7:00 p.m. INHERE: Medicine Lake Room City of Plymouth 3400 Plymouth Boulevard Plymouth, MN 55447 CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Housing and Redevelopment Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner, citizen or petitioner so requests, in which event the item will be removed from the consent agenda and considered in normal sequence on the agenda. 1. CALL TO ORDER - 7:00 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes from September 25, 2008. B. Plymouth Towne Square. Accept Monthly Housing Reports. C. Vicksburg Crossing. Accept Monthly Housing Reports. 3. NEW BUSINESS A. Vicksburg Crossing. Marketing Report. B. Vicksburg Crossing. Review 2009 Budget. C. Plymouth Towne Square. Review 2009 Budget. 5. ADJOURNMENT Page 2 City of Plymouth mnm%�� Adding Quality to Life 5 7 12 9 19 26 ENVIRONMENTAL 7:00 PM Daylight Savings QUALITY Ends Set Clocks Back 1 Hour Modified on 10/17/08 October 20001 1 7:00 PM PLANNING COMMISSION MEETING Council Chambers 2 3 Absentee Voting Begins for General Election 127 I 5:30 PM :LOSED COUNCIL MEETING _abor Negotiations Mooney lake Room 7:00 PM =GULAR COUNCIL MEETING Council Chambers 7:00 PM 7:00 PM PLYMOUTH HRA MEETING ADVISORY Medicine Lake Room COMMITTEE ON TRANSIT (PACT) MEETING Medicine Lake Room A 29 30 31 5:30-8:30 PM Halloween on the Creek Plymouth Creek Center 4 1:00 PM Plymouth On Parade Celebration City Center Area 11 12;00-4:00 PM Fire Dept, Open House Fire Station III 18 25 CHANGES ARE NOTED IN RED Page 3 7 9 10 6:30-8:30 PM ENVIRONMENTAL 7:00 PM Volunteer QUALITY PARK Et REC Recognition Event COMMITTEE ADVISORY COM - Plymouth Creek (EQC) MEETING MISSION (FRAC) Center Cancelled MEETING Council Chambers YOM KIPPUR ins at Sunset 13 14 15 16 17 7:00 PM 7:00 PM REGULAR COUNCIL PLANNING COLUMBUS DAY MEETING COMMISSION Observed Council Chambers MEETING Council Chambers PLYMOUTH PUBLIC WORKS DIVISION CLOSED 20 21 22 23 24 127 I 5:30 PM :LOSED COUNCIL MEETING _abor Negotiations Mooney lake Room 7:00 PM =GULAR COUNCIL MEETING Council Chambers 7:00 PM 7:00 PM PLYMOUTH HRA MEETING ADVISORY Medicine Lake Room COMMITTEE ON TRANSIT (PACT) MEETING Medicine Lake Room A 29 30 31 5:30-8:30 PM Halloween on the Creek Plymouth Creek Center 4 1:00 PM Plymouth On Parade Celebration City Center Area 11 12;00-4:00 PM Fire Dept, Open House Fire Station III 18 25 CHANGES ARE NOTED IN RED Page 3 r�Plymouth Adding Quality to Life November 2008 Page 4 1Elf`:8:00AM- - 3:00 PM Absentee Voting 2 3 � 4 111111� 5 6 7 8 8:00 Am- 7:00 AM - 7:00 PM 7:00 PM 6:00 PM 8:00 PM PLANNING HUMAN RIGHTS Absentee General COMMISSION COMMISSION Voting Election MEETING MEETING Council Chambers Parkers Lake Conference Room 9 10 6:00 PM 11 12 13 14 15 SPECIAL COUNCIL 7:00 PM 7:00 PM MEETING ENVIRONMENTAL PARK ft REC Update With City VETERANS DAY QUALITY ADVISORY COM - Manager COMMITTEE MISSION (FRAC) Medicine Lake Room Observed (EQC) MEETING MEETING Medicine Lake Room Council Chambers 7:00 PM CITY OFFICES REGULAR COUNCIL CLOSED MEETING Council Chambers 16 17 18 19 20 21 22 7:00 PM 7:00 PM PLANNING HRA MEETING COMMISSION Medicine Lake Room MEETING Council Chambers 23 24 25 26 27 28 29 5:30 PM 7:00 PM SPECIAL COUNCIL PLYMOUTH MEETING ADVISORY Utility Rate Study COMMITTEE ON THANKSGIVING THANKSGIVING Medicine Lake Room TRANSIT (PACT) HOLIDAY HOLIDAY MEETING 7:00 PM Medicine Lake CITY OFFICES CITY OFFICES 30 REGULAR COUNCIL Room A CLOSED CLOSED MEETING Council Chambers Modified on 10/17108 Page 4 City of Plymouth Adding Quality to Life December 2008 Modified an 10/17/08 Page 5 1 2 3 4 5 6 7:00 PM 7:00 PM SPECIAL COUNCIL PLANNING MEETING COMMISSION Council Chambers MEETING Truth in Taxation Council Chambers Hearing 9 7 8 10 11 12 13 z:oa—s:oo PM 7:00 PM 7:00 PM 7:00 PM Old Fashioned Christ- REGULAR. COUNCIL ENVIRONMENTAL PARK Et REG mas MEETING QUALITY ADVISORY COM - Plymouth Historical Society Building Council Chambers COMMITTEE MISSION (PRAC) (EQC) MEETING MEETING Medicine Lake Room Council Chambers 14 15 16 17 18 19 20 7:00 PM 7:00 PM PLANNING HRA MEETING COMMISSION Medicine Lake Room MEETING 23 Council Chambers 21 22 24 25 jj� 26 27 CHRISTMAS EVE CHRISTMAS DAY CITY OFFICES CITY OFFICES CHANUKAH CLOSED AT CLOSED Begins at Sunset NOON 28 29 30 31 6:00-9:00 PM New Years Eve Event Plymouth Ice Center Modified an 10/17/08 Page 5 Tentative Schedule for City Council Agenda Items October 28, Closed, 5:30 p.m., Mooney Lake Conference Room • Discuss labor negotiations October 28, Regular, 7:00 p.m., Council Chambers • Special Assessment Hearing for 2008 Street Reconstruction Project, City Project #8101 • Special Assessment Hearing for 2008 Mill and Overlay Project, City Project #8109 • Adopt 2009-2013 Capital Improvement Program • Announcement of General Election • Oath of Office to Firefighters Blaine Duncan, Blaine Howe, and Brandon Johnson • Approve rezoning from B -C (Business Campus) to O (Office) and site plan amendment for four small additions. The proposal would allow the two existing town -office buildings located southeast of Old Rockford Road and 45"' Avenue to be converted to a senior memory care facility with 45 rooms. Schuett Real Estate Group. (2008077) • Approve zoning ordinance text amendment that would allow outside storage of inoperable vehicles awaiting repair in the C-3 (Highway Commercial), C-4 (Community Commercial), C-5 (Commercial industrial), 1-1 (Light Industrial), I-2 (General Industrial), and I-3 (Heavy Industrial) zoning districts. City ofPlyrrroarth. (2008098) • Approve termination of a 1990 conditional use permit that allowed stockpiling of dirt for property located at 3500 Holly Lane. Plyynrouth Panels Developer:exit II, LLC • Approve grant award from the U.S. Department of Justice for the COPS Secure Our Schools Grant for School District 281 November 10, Special, 6:00 p.m., Medicine Lake Conference Room • Update with City Manager November 10, Regular, 7:00 p.m., Council Chambers November 25, Special, 5:30 p.m., Medicine Lake Conference Room • Discuss Utility Rate Study November 25, Regular, 7:00 p.m., Council Chambers December 1, Truth in Taxation Hearing, 7:00 p.m., Council Chambers December 8, Truth in Taxation Hearing Continuation, 7:00 p.m., Council Chambers December 9, Regular, 7:00 p.m., Council Chambers Note: Special Meeting topics have been set by Council: all other topics are tentative. Page 6 City of Plymouth News Release For Immediate Release Contact: October 15, 2008 Sandy EngdahI, 763.509.50$0 Plymouth residents should apply by Nov. 14 for commission seats Plymouth residents looking for a way to contribute to their community should consider applying to serve on a citizen advisory board. Several citizen groups advise the Plymouth City Council on a variety of issues. If you're interested in applying to serve on one of them, now is the time to apply. Applications will be accepted until Fri., Nov. 14. The City Council will interview applicants and make appointments later this year for tends beginning in early 2009. The following lists boards that may have openings and the times they typically meet. Environmental Quality Committee (EQC): Second Weehiesdm-, 7p. in. The EQC makes recommendations to the City Council on a variety of environmental issues. Housing and Redevelopment Authority (HRA): Third 77m sday, 7 p.m. The HRA: works with Plymouth's housing and community development programs: administers federal, state, and local grants for housing programs; and manages a residential apartment building for seniors. Human Rights Commission (HRC): Fust Thursdny, 7 p.ni. The HRC provides education on human rights issues and offers mediation services for human rights problems. Park and Recreation Advisory Commission (PRAC): Second Thursday. 7 p.m. PRAC oversees plans and proposals for the City's park s_ystern and recreation programs. Page 7 Planning Commission: First and Third [Vet ieSdav, 71mn. The Planning Commission reviews land development applications to ensure they conform to the Comprehensive Plan and Zoning Ordinance. Plymouth Advisory Committee on Transit (PACT): Fourth Wednesday-, 7 p.m. PACT advises the Council on the City -operated Metrolink bus system, which provides commuter/reverse commuter service between Plymouth and downtown Minneapolis and a shared, curb -to -curb service. For an application, call Sandy Engdahl at 763-509-5080 or download an application from the City web site, www.ci.plymouth.ann.us. Page 8 A bus transit power svii-1 le htrp: `hx % �%.starti-ibu:ie.com/templatcs,'Print= Fliis_Story'sid-309$5=119 StarTribune.com MINNEAPOLIS -ST. PAUL. MINNESOTA A bus transit power struggle By JOY POWELL, Star Tribune October 15, 2008 A long fight over control of the south -metro bus system flared Tuesday in Burnsville, fanned by a dispute over whether a new transit station in Apple Valley would fall under local or regional control. It is a power struggle that pits Metropolitan Council President Peter Bell and his agency against local officials who intend to kill any move toward a centralized transit system. South metro communities want to retain the local authority they have had since the 1990s. Back then, the suburbs contended they were paying a lot in taxes without getting bus service, so the Legislature gave them authority to "opt out" of the Metro Transit system under the Met Council. The suburbs have lobbied effectively as a group since then, although their autonomy and trust in regional government have eroded since 2000, said some officials, such as Ruth Grendahl, an Apple Valley City Council member. Grendahl serves on the Minnesota Valley Transit Authority -- the public transportation provider for Apple Valley, Burnsville, Eagan, Savage and Rosemount. Bell said he's not trying to get rid of the "opt outs," but he wants regional uniformity as the system expands. "In candor, there's trust issues on both sides, and we need to work on those issues," Bell told the group. Local officials pointed to the Met Council's attempt a year ago to override MVTA officials who began Rosemount's first express bus service. Rosemount had been in the MVTA transit taxing district for many years but had no direct bus service. "Met Council had come down and said, 'No, you cannot sustain this, and you cannot provide service to Rosemount,"' Grendahl said. "Once again, appointed people and staff people overrode elected officials." That bus began running Sept. 8 between Rosemount and Minneapolis. Now, plans to build a Cedar Avenue bus transit station in Apple Valley on land owned by the MVTA has started a quarrel. The Met Council wants title to the land and to own and design the station. But MVTA officials want local ownership and control. The state Finance Department would issue the bonds for that $19 million transit station project, which includes the cost of the land. But the wording of past legislation for that bonding caused problems. It said bonding money would go to the Met Council, rather than I of 3 10;1 1-0 Page 9 A btts transit power stt-ti&gle lrttp:,w%vw.startribune.com/teniplates/Print Tllis_Story?sid=30985 419 pass through to local governments. Tuesday, Sen. Jim Carlson, DFL -Eagan, said he would introduce a bill that would authorize the Met Council to transfer ownership of the land and building to the MVTA for a nominal amount. For some local officials, the Met Council's intentions to make the transit station a regional facility signal a move to centralize the governance of transit. "The MVTA members believe that this goes to the basic authority that we have to provide service in our territory and that year after year, we see it eroding," Grendahl said. Bell said that's not the case, though there must be regional coordination, including for bus maintenance schedules. "Without a uniform, regional government overseeing bus operations," he said, "we will have a tower of Babel," with various delegations going to the Capitol and "fighting like cats and dogs" for their areas. Bell said that would pit communities such as Apple Valley against Farmington, and Forest Lake against Minneapolis. MVTA owns transit stations in Eagan, Burnsville, Savage and Apple Valley, with no operating deficit. The Met Council transit, which faces a $38 million deficit for the 2010-11 biennium, just raised fares by 25 cents and is eying another increase next year. Burnsville Mayor Elizabeth Kautz, who chairs the MVTA, said with fewer buses in the local fleet, and a greater effect if one goes out of commission, suburbs want the flexibility to service buses more frequently than the Met Council does. Rep. Sandra Masin, DFL -Eagan, was angered during the meeting. The former Eagan City Council member and former chairwoman of the MVTA helped begin the Suburban Transit Association. After Bell told the group that he answers to the governor, Masin suggested that perhaps Met Council officials should be elected, rather than appointed. Joy Powell • 952-882-9017 ® 2008 Star Tribune. PJI rights reserved. Page 10 of � lU/l �/?0U Local governments Nveath.ering the financial storm - so far Page 1 of') SarTf Ibunexom MINNEAPOLIS -ST. PAUL. MINNESOTA Local governments weathering the financial storm _ so far By MARY JANE SMETANKA, Star Tribune October 13, 2008 The eyes of nervous city financial managers around the country were on Bloomington last week as the city sailed into uncertain financial waters to put $9.6 million in general obligation bonds up for bid. Bloomington was one of the first cities to venture back into the municipal bond market after two weeks in which some of the biggest buyers of bonds went out of business. Who would bid, and what kind of interest would they offer? There were six bids, and Bloomington sold its 20 -year bonds for street and sidewalk improvement at an interest rate of 4.46 percent. City leaders were pleased -- and relieved. "That was great in this market," said Lori Economy-Scholler, Bloomington's finance director. The sale meant she didn't have to resort to a last-minute defense tactic: a same-day resolution she had already prepared for the City Council that would have delayed the sale for up to a month in the hope that a volatile market would settle down. While some cities outside of Minnesota and states like California are in crisis because of their inability to access the municipal bond market, Minnesota cities seem to be coping with the upheaval. Officials in several cities said that while they are staying on top of the markets and staying in touch with financial advisers, none was in trouble. One reason is that Minnesota, unlike some other states, allows cities and counties to issue general obligation bonds for things such as new buildings or street improvements without holding a referendum. The state's tougher security laws also allow investors to feel more confident about buying bonds here, said Mark Ruff, executive vice president of Roseville -based Ehlers and Associates Inc., which advises cities and other public clients on debt planning. Strong interest in Bloomington's bonds is linked to the city's stellar AAA rating by three rating firms. It's part of what investors call "fleeing to quality" -- cashing in equity for safer investments like treasury and municipal bonds. "We're not going to be merged or consolidated or go out of business," Economy -Scholler said. Ruff said the absence of big firms that traditionally bought large amounts of debt would make him nervous if he were trying to sell $200 million in bonds. http://vYA"v.startr1bune.com/templates/Print_This_Story?slid— 3092,5' 4 10 page l l Local oovernments weathering the financial storm - so far But most cities issue bonds worth between $1 million and $15 million. Ruff said he is "calming people and talking them through this." "We have postponed a few sales two to three weeks, just letting the market settle down a little bit," he said. "This week, we've seen a pretty good appetite from the bond market for general obligation bonds and other very secure forms of debt issued by Minnesota cities and counties." But there are changes in the market. Economy-Scholler said the six bidders for Bloomington's bonds included 18 different financial institutions, some of them acting in consortiums. There were fewer banks and more institutional investors. And a month ago, interest rates were slightly lower. But Economy-Scholler said the accepted bid is well within the average for the city's bonds over the last 20 years. Edina, Richfield and Chanhassen all expect to enter the bond market during the next few months to help pay for new city facilities. Officials in those cities said they were watchful but not worried, Before last week, "If anybody was going to try to sell, the market was so shaky that people had to delay bond sales until things stabilized," said Chanhassen City Manager Todd Gerhardt. He said Chanhassen officials still plan to sell $8 million in bonds on Oct. 27 but could hold back if the bond market worsened. Paue 2 of 3 Waiting can pay off. In February, Hennepin County saved $2 million in interest payments by delaying a bond sale, said Dave Lawless, county finance director. Two weeks ago, Lawless was considering three bond issues totaling about $90 million. Last week, the county sold one of those three -- a $15 million, 10 - year issue to finance a new financial and human resources system. There were five bidders; the county accepted a bid with a 3.728 percent interest rate. "It was a way to test the market," Lawless said. "Maybe a year ago, we would have had one or two more bidders.... This is having an impact on us, but it's not incredibly severe. Everybody's just a little more cautious about picking their timing. We have the flexibility to wait." In Duluth, where the city has pared a 2008 budget deficit of $6.5 million to $600,000 and anticipates an $8.5 million deficit next year, tumult in the bond market adds to the city's financial problems. The city has already laid off about 150 full- and part-time employees. For now, it has shelved controversial plans to sell a 100 -year-old Tiffany stained-glass window, but it is proceeding with the sale of four residential lots in the city's Park Point area on Lake Superior worth a total of almost $2 million. http:llw�ti,%u.startrihtine.eom/templates/Print_Tllis_Story?sid-10923 24 i s Page 12 Local governments weathering the financial storm - so far Next year, city officials planned two major infrastructure improvements: a $2.5 million improvement to a water pump station, and $2.8 million of work on water, gas and sanitary sewer systems. "We obviously don't have the cash on hand to pay for that out of pocket, and the uncertainty in the bond market makes these questionable," said Mayor Don Ness. "The challenge before us is difficult enough.... The burden of the greed and irresponsibility at the national level has trickled down to communities and households like those in Duluth." Many city officials said they are willing to sit tight and wait out the market if they can. But Ruff said there is danger in sitting on the sidelines too long. "There might be a glut in the market when things settle down," he said. "Interest rates could go up." Mary Jane Smetanka + 612-673-7380 O 2008 Star Tribune. All rights reserved. Page 3 of 3 Page 13 http://v"Nw.startribune.com/templates/Print_ This Story?sid=30923524 1 Fechn5u the burn over back -yard fires hap: '.%Nti aa.startribune.cotnitemplates/(Print This_Stor-y?sid-30870774 StarTribune.com MINNEAPOLIS - ST_ PAUL, MINNESOTA Feeling the burn over back -yard tires By TOM MEERSMAN, Star Tribune October 12, 2008 On Judy Peterson's block in south Minneapolis, back -yard fires are a neighborly event. Every weekend, someone has a fire in a back -yard pit or metal bowl, and friends wander over to visit and have a beer- "You een "You get the smell of camping in the outdoors without having to rough it or go out of town," said Peterson. "You get the country in the city." Those words are just what the outdoor patio industry wants to hear. Their fire pits, fire rings, portable metal saucers and chimney -shaped fireplaces have become big sellers in recent years. But as back -yard recreational burning has spread, so have complaints about the smoke wafting into bedrooms and living rooms next door or across the alley. What started as mere irritation at a smell some consider a nuisance has turned into concerns about a health threat to people with breathing problems triggered by smoke. Maplewood is reviewing its policies on burning. Health groups warn that airborne particles from the fires can irritate lungs. An environmental group is advocating a ban. "When the window is open I taste it," said Connie Sullivan, who lives in the southeast Como neighborhood near the University of Minnesota. One neighbor burns outdoors frequently, she said, and on Labor Day weekend, the wind channeled the smoke directly into her home. "The whole house reeked of it: the rugs, the draperies, the clothes, everything," she said. When Sullivan spoke to the neighbor, he told her to close her windows. "It's that kind of attitude that worries me," she said. "It's become a problem for people who are no nburners." "Some people smell wood and immediately their minds go back to those childhood days with their parents and their aunts and their uncles and their grandparents, and it's nothing but a good feeling," said Mike O'Rourke of the North Central Hearth, Patio and Barbecue Association. But while one group of friends gathers around glowing embers on a chilly autumn evening, roasting marshmallows for the last s'mores of the year, the next-door neighbor may be rushing around the house shutting windows and reaching for an inhaler. Lungs stressed The problem with wood smoke„ said Dr. Norman Edelman, chief medical officer for the American Lung Association, is that it contains hundreds of toxic chemicals, almost like I of') Page 14 Feeling the barn over back -yard fires lhttp:% w .startribune.conn/templales/ Pritit—Thi s_Story'sid=+0870774 cigarette smoke. Burning also releases lots of fine particulates, he said. Some get stuck in the nose and throat and cause irritation and coughing. But extremely fine particles penetrate into the deepest part of the lungs, Edelman said, causing inflammation that provokes acute breathing problems for those who have asthma, bronchitis or other respiratory diseases. Concerns about wood smoke from recreational burning are similar to workplace complaints about people who wear strong fragrances, he said. "People have a right not to have their health and well- being impaired by what other people do, especially if what other people are doing is not necessary," Edelman said. John Seitz, air policy supervisor for the Minnesota Pollution Control Agency, said that it's not necessary for the state to regulate recreational burning, because ambient air quality is generally good. However, he said, that doesn't hold true for someone just downwind of a smoky fire who is getting a heavy dose of pollutants. "In individual nuisance situations, cities will have to try and work them out," Seitz said. It's difficult to quantify the extent of the complaints because they filter into a wide variety of government agencies. But as communities hear more complaints linked to health concerns, some are responding. Maplewood recently established a task force to review its policies, spearheaded by Council Member Will Rossbach. There are strong feelings on both ends of the spectrum, said Rossbach, and he doesn't know whether the group will reach a consensus. "If it turns out that only a few in the city have real problems, does that mean that we should do something to give them protection, or do we say: Tough Luck, move somewhere else?" Rossbach said. Late-night burning Existing local rules about wood smoke focus mainly on safety concerns, not health. Many suburbs, including Minnetonka, St. Louis Park, Edina and Woodbury, require residents to obtain a free annual permit for recreational fires. The purpose is to make people read rules that set limits on hours for burning, what may and may not be burned, the size of fires and other conditions. Minneapolis and St. Paul do not require permits, but have similar rules for burning. Minneapolis Fire Marshal Bryan Tyner said that most trouble seems to be from fires not extinguished by 10 p.m. or the burning of prohibited materials, such as brush and garbage. Julie Mellum, Midwest director of Clean Air Revival, a California-based environmental group, advocates a ban on back -yard wood burning. Mellum, who lives in the Linden Hills neighborhood of south Minneapolis, said that she and many others are extremely sensitive to outdoor smoke, and sometimes need to wear masks or remain indoors to avoid getting sick_ Page 15 -' of 1 10/13/20 Feeling; the burn over back -yard fires http.1/w%v%v.startribtine.com/templates Print_Tliis Story?sid-30870774 City air already has too many pollutants from traffic, indoor fireplaces and other sources, Mellum said, without allowing more. "To pollute for fun just doesn't cut it," she said. "It's just not neighborly to smoke people out." Back -yard burning has others concerned about the safety of their homes. Natalie Reciputi said that even small, legal fires are simply too risky in many urban neighborhoods, with their narrow lots and with only a few feet between houses. "I live in a house that's wood and it's 100 years old," she said. "One spark and there goes my entire life's investment." Tom Meersman • 612-673-7388 © 2008 Star Tribune. All rights reserved. 3 of 3 10/13/200 Page 16 Property tax levy capped: Pawlenty says governments need to live with in means Brad Swenson Bemidji Pioneer Published Wednesday, October 15, 2008 Ilttp:/'\v\\ w.bemidjipioncer.cotii/articles/index.cfin'icl=I8856tiion=nCNN S Cities and counties planning next year's budgets find that they can't go to property taxpayers to maintain public services, as the 2008 Minnesota Legislature capped what they can raise. Democrats say local governments might have to cut services or let roads go unless state aid is increased to snake up the difference. Otherwise, they'll seek in 2009 to repeal the levy limits, which are in place for three years. But Gov. Tim Pawlenty, who insisted on the levy limits in session -ending budget negotiations, says local governments as well as the state must learn to live within their means. To repeal levy limits "is yet another item in the unstoppable train of bad ideas that will get passed into law if the Democrats take control and are able to override my veto without sufficient votes from Republicans," Pawlenty said during a campaign event in Bemidji on Monday, "We fought like the dickens in the last few years to get a property tax cap," the Republican governor said. "I'd like to put it in the Constitution. I'd like to have the people of the state of Minnesota be able to vote on it like they do in many other states to say we're going to cap how fast property taxes can go up on anybody's house or business in a given year." Pawlenty said the DFL -controlled Legislature wouldn't put it on the ballot "because they're afraid of it." Instead, the property tax cap is statutory put in state law — which a future Legislature could change. "For three years, levies can't go up more than 3.9 percent," Pawlenty said. "We wanted 3 percent, but we compromised at 3.9 percent, which by the way is about twice as fast as the private economy is growing." Exceptions to the levy cap were made for "important things" such as police and fire. he said. "If anybody tells you that the cap is unreasonable, tell them to go fish because the rest of the economy is growing anywhere near that fast." He noted that several high-ranking Democrats a week earlier in Bemidji said they would repeal the levy limit if Local Government Aid for cities or County Program Aid for counties isn't given inflationary increases_ Page 17 The Democrats "want to go back to the days of 6. 9, 121 15 percent levy increases_" Pawlenty said, looking at a partisan crowd gathered in Bemidji Regional Airport's conference room. "I don't know about you.. but I don't know many Minnesotans who think that's a good idea.`' Placing a levy limit on local governments "was not our first choice, although Minnesota is no stranger to levy limits," House Speaker Margaret Anderson Kelliher said last week in an interview while she was in Bemidji. '`It really was the governor who wanted it," she said, adding levy limits wasn't a priority of either the House or Senate. `'And when the governor wants something, governors have a history of getting the things they want, at least partially. "And with that, we really still feel that local control and local decision-making is one of the most important things," Kelliher said. "A levy limit starts to impinge on that, and can really affect that relationship of the local control versus the state telling locals what to do." She said it "was very clear to us when we were talking in the end of negotiations that if the Local Government Aid inflationary increase cannot be followed through on because of budget reasons or any other reason, that that then is an opening for everyone to renegotiate the whole levy limit issue, because we are not able to hold up our budget end of that deal, then we have to give some flexibility." The "us" Kelliher referred to included Senate Majority Leader Larry Pogemiller, DFL - Minneapolis, Senate Taxes Chairman Tom Bakk, DFL -Cook, and House Taxes Chairwoman Ann Lenczewski, DFL -Bloomington, she said. Pawlenty also defended the use of locally approved property tax referendums for schools, simply because the state can't afford to pick up the full cost. "In terms of the state's portion of school funding, at the peak of the Minnesota Miracle, 60 percent of the total for K-12 carne from the state," the Republican governor said. "We're now well above that. We're at an all-time high three or four years ago, and it's receded a few points from that." He referred to the Minnesota Miracle of the 1970s in which the state assumed more K-12 funding from local property taxes, and created a state sales tax to pay for it. "The state is providing, as a percent, more of the K-12 funding than almost any other time in modern history, including the peak of the Minnesota Miracle," Pawlenty said. The levies, however, were to be used for capital expenditures such as new school buildings, but not to be relied upon to fund classroom costs, he said. Page 18 *"In terms of operating referendums, I don't think you want to have school districts to have to rely on them substantially, but I do think you want to leave some local option in the system because there's local preferences," he said. Asked about the ability of a property -poor school district to get voter -approved operational levies, Pawlenty said the state equalizes them to a point with funding. "Focusing on more frilly or additionally equalizing levies so that the playing field is level — in other words, a dollar levied in one district is the same or similar to a dollar levied in another district.." The state shouldn't take that option away from local school districts, he said. "It shouldn-t be the main funding source, but I think it could be used as a supplement." Equaling levies "is a good goal." Pawlentyy said. Bakk, however, says the current Ievies are way out of whack, that the gap is growing in Minnesota between wealthy districts which can vote extra money to poor districts that struggle and can't provide funding. "We're generating huge disparities in neighboring districts, because for a whole bunch of different reasons, some districts can pass excess operating levies and others can't." Bakk said last week while he was in Bemidji. Different demographics and tax capacities plus the number of season recreational properties that aren't on the tax rolls help define whether a referendum will pass, Bakk said. Bemidji School District voters will face that issue Nov. 4 as they will be asked to extend an existing operating levy of $501 per student. Bakk said many rural levies fail because of a large amount of non-taxable public land and a high number of people on fixed incomes, such as senior citizens. "We've got a lot of seniors with pretty meager pensions, some with none," he said. "It isn't right that they have to sit down at their kitchen table the day before the vote and decide to pick their school or other things that they really need." That's not a good choice, Bakk said. -And Nve're creating huge finding disparities. If we don't correct this, there's going to be a lawsuit because I don't care if you're from Hallock or Bemidji or Eagan ... a young person should have the same kind of opportunity to get a good start in life." While Bemidji worries about continuing a $501 per student levy, some metro suburbs have $1,500 per student levies, Bakk said. "Some districts it's really easy to pass.... If we really care about developing a workforce and making sure the young people get their start on life. this whole notion that we're going to fiend schools with voter -approved levies is wrong." Page 19 The governor. lie said, "is wrong about this. He is just wrong, that when it comes to finding schools the only way you can get money there is if people vote for it." Page 20 Approved Minutes City of Plymouth Planning Commission Meeting October 1, 2008 MEMBERS PRESENT: Vice Chair James Davis, Commissioners Terry Jaffoni, Erik Aamoth, Karl Neset and Scott Nelson MEMBERS ABSENT: None STAFF PRESENT: Planning Manager Barbara Scnness, Senior Plariner Marie Darling, Plarnler Joshua Doty, City Engineer Bob Moberg, Director of Parks and Recreation Eric Blank, and Office Support Representative Janice Bergstrom 1. CALL TO ORDER - 7:00 P.M. 2. OATH OF OFFICE Planning Manager Senness administered the oath of office to Gordon Petrash who was sworn in as a Planning Commissioner for the City of Plymouth. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC FORUM S. APPROVAL OF AGENDA MOTION by Commissioner Nelson, seconded by Commissioner Jaffoni, to approve the October 1, 2008 Planning Commission Agenda. Vote. 6 Ayes. MOTION approved. b. CONSENT AGENDA A. APPROVAL OF THE SEPTEMBER 17, 2008 PLANNING COMMISSION MINUTES MOTION by Commissioner Neset, seconded by Commissioner Aamoth, to approve the September 17, 2008 Planning Commission Minutes. Vote. 6 Ayes. MOTION approved. B. JP & CO. (2008091) MOTION by Commissioner Neset, seconded by Commissioner Aamoth, to approve the request by JP & Co. for variances for setback and impervious surface area coverage to allow construction of a new house and detached garage for property located at 2740 Larch Lane North. Vote. 6 Ayes. MOTION approved. Page 21 Approved Planning Commission Minutes October 1, 2008 Page 2 7. PUBLIC HEARING A. CITY OF PLYMOUTH (2008075) Vice Chair Davis introduced the request by the City of Plymouth for a site plan amendment and conditional use permits for a multi -use park recreation building for Nest Medicine Lake Park located at 1920 West Medicine Lake Drive. Planner Doty gave an overview of the staff report. Planner Doty added that the proposed metal roof has been changed to a shingled roof. Vice Chair Davis introduced Barry Wanner, Senior Vice President of SRF Consulting Group. Mr. Warner said the proposed building is oriented slightly to the northeast to capture views of the bay and plain body of Medicine Lake. He said there is a strong relationship between the parking lot to the north and the building which would provide a hub of activity with existing trails, motor vehicles, pedestrian and bicycles. Mr. Warner said the building is situated on a slight knoll with an elevation of 899 which is 10 feet above the ordinary high water mark. He said the primary entrance would be on the northwest side, and the coffee shop area and terraces would be on the north side. Mr. Warner said that the plazas on the east side will help delineate recreation purposes inside and out. Mr. Warner reviewed the landscaping plan, which would have good seasonal color. He said they would provide fire life safety, and the only change to the parking lot would be to broaden the turning radius of the road for fire tricks. Mr. Warner said there would be stonnn water treatment from permeable pavers within the terrace. Mr. Warner said the wetland impact would include mitigation replacement at 2:1 and would occur in the same park area. He reviewed parking and signage. Vice Chair Davis introduced Park and Recreation Director Blank, who reviewed the 28 - year planning history for the W. Medicine Lake area. He said in 1982 this park was identified as one of the four major parks, and sketch plans were developed. Park and Recreation Director Blank said an acquisition program over a period of 12 years resulted in the purchase of the marsh area on the west side and 6 single-family homes. He said in 1994 a master plan for the park was developed by the City Council, residents and staff. The next phase was relocation of W. Medicine Lake Boulevard in 1995 which took two years due to soil issues. Park and Recreation Director Blank said the developinental phase included the covered bridge, dredging of the beach area, and parking lot. Park and Recreation Director Blank said they were following the model of Parkers Lake which had the winter wannning house, but 10 years later after evaluating skating on lakes they have moved away from the concept of an outdoor rink. He stated there would be one major rink and that would be at Parkers Lake. Park and Recreation Director Blank said the main features of the building on the first floor include a multipurpose room, activity room, restroom, storage, small conference room, offices, and mechanical rooms. There would be a bathroom for the outdoor beach users. He said the second story would have two Page 22 Approved Planning Commission illinutes October 1, 2008 Page 3 classrooms and storage. He said the coffee house would be rented to a tenant and the City will inten iew this winter to find the right vendor. Park and Recreation Director Blank said this vendor will be part of the revenue stream of the building to help offset the cost of operation. The 900 -square foot coffee house would be finished by the tenant based on their needs and activities. Park and Recreation Director Blank said there will be no kitchen, ovens or exhaust fans in this facility and added that the Plymouth Creek Center has a full kitchen. Food would be prepared offsite and served at this facility. Park and Recreation Director Blank reiterated that the main purpose is to service the park visitors, with the ability to get a beverage or ice cream cone, sit on the decks, use the beach and restrooms. He said secondly, many recreational indoor programs such as pottery, arts and crafts, dance classes are offered seven months of the year. Park and Recreation Director Blank stated this building is designed to serve the residents on the east side of Plymouth, and the City would like to have a strong presence on the east side. He reviewed the building drawings and said the glass, wood, and stone would have a warming feeling and would not overpower the lake shore. Cormnissioner Nelson asked about the hours of operation and if this would operate on a year round plan. Park and Recreation Director Blank responded that the City's portion would be year round. He stated there are 1,800 programs which operate typically between 9 a.m. and 9 p.m. Park and Recreation Director Blank said staff will be cognizant of beach operation time, to allow parking associated with beach operations. He said the vendor could decide if they wanted to remain open outside of the 9 a.m. -9 p.m. window. Park and Recreation Director Blank added that weddings would have the same criteria as the Plymouth Creek Center and end by midnight. Vice Chair Davis opened the public hearing. Vice Chair Davis introduced Eve Perlman, 11911 23rd Avenue North, who said her house backs up to the parkland. She said the proposed building looks beautiful, but she is totally against another beautiful facility on Medicine Lake. Ms. Perlman said we already have French Regional Park and it would be overkill to have another massive facility. She said she is not sure what the need is. Ms. Perlman said she had heard nothing about the proposed facility and stated that the construction of another building, is a blight infringing on the naturalness. Ms. Perlman said she does not want another coffee shop, and added one of the Starbucks in Plymouth is closing. She said, as a resident on the eastern side of Plymouth, she feel her needs are being met and knows she can go just across the freeway for services. Vice Chair Davis introduced Steve Chase, 11901 23rd Avenue N. Mr. Chase said he is a retired federal engineer, a state certified fire instructor, and a long time neighbor who in 1993 discussed this plan. Mr. Chase said the neighbors agreed they wanted a quiet area for Page 23 Approved Planning Commission Minutes October 1, 2008 Page 4 the park. Mr. Chase questioned who this park is for and only property owners within 500 feet of the park know about this plan. He said the City of Medicine Lake requested they be notified of any park development as it directly affects them. He said notification should be given to the DNR and Sioux Indians, to research possible Indian mounds. Mr. Chase said there was no fire protection, hydrants or fire system indicated on the proposed plan. He said the site is dangerous with the proposed layout. Mr_ Chase said this building is not needed for recreation as the Medicine Lake Community Club, which is used for games and weddings, is steps away. Mr. Chase said the plan does not meet LEED standards which are building standards for "_green". He said the proposed design is a 1982 concept with a high cost for operation, high vaulted ceilings, and enormous energy consumption. Mr. Chase said he doesn't think a coffee shop should be in the building. He questioned the City trying to acquire the Community Club and then the City would end up with two buildings. Mr. Chase said this plan does not meet the concept of the residents. He said a wetland impact statement was not included. Mr. Chase said we don't need another recreation building, we need to be able to use this Class A lake. Mr. Chase said the trails and memorial benches are very important to people. Mr. Chase said he is insulted that there is a plan to put a building where his son's bench is. Mr. Chase said the 2009 proposed budget is cutting temporary workers and vehicles and asked who would maintain these projects if there are no temporary workers. Mr. Chase concluded that this is not a time to be adding to the budget for line item recreation we don't need and asked that this be tabled and sent back to the community for development. Vice Chair Davis introduced Fred Moore, 1820 Ives Lane. Mr. Moore said. Medicine lake is the second largest lake in Hennepin County and has been classified by the PCA as an impaired lake. Mr. Moore pointed out there was never a site plan approval for this park. He said there was much input and a park master plan was approved. Mr. Moore addressed the water quality issue and said the City has spent thousands of dollars on improvement projects for Medicine Lake. He said the proposed improvements for this project could exceed SIM, which hopefully the Basset Creek Management would finance. Mr. Moore added 60% of that cost would be borne by the City of Plymouth. Mr. Moore said the proposed plan provides minimum improvements with regard to water quality. Mr. Moore said city staff does not feel the wetland buffer requirements apply because it was created after the ordinance went into effect in 1995. He said this is a high quality wetland, and the wetland buffers would be 40 -foot minimum and 60 -foot maximum. He said the boundary of the wetland with a 40 -foot buffer would go through the proposed patio area. Mr. Moore said an additional 15 -foot setback is required for any building, and there has been no attempt to put buffers here. Mr. Moore said this a very constrained narrow piece of property to fit in this size of community center building. Mr. Moore said the City's shoreland regulation affects all properties within 1,000 feet of the lake and 1,000 feet on either side of Plymouth Creek, and the total impervious area shall not exceed 25% of total area lying above the high water mark. Mr. Moore said this mark is key and that the staff report used the entire property for calculations. He said this property is over 90% flood plain. Mr. Moore said the eastern side of the roadway and most of the property is a Page 24 Approved Planning Commission Minutes October 1, 2008 Page 5 wetland, and you can't count that property. Mr. Moore said you can only count along the lakeshore and guessed that the proposed building, patios and recreational area are 50-60 percent impervious surface and are all located in a very critical area. Mr. Moore stated this facility is not mentioned anyplace in the City's Comprehensive Plan. He said except for the existing building, there is only a slight reference in the implementation plan. Mr. Moore said no study has been done to show these facilities are demonstrated to be needed in this park. Vice Chair Davis introduced Thomas Stout, 11917 23rd Avenue North. Mr. Stout questioned why this proposed project is needed and stated four out of five neighbors on 23rd Avenue are opposed and he wonders what this would do to the neighborhood. Mr. Stout said the City should reach out beyond 500 feet for notification, and have more open meetings with more neighbors. He said he uses the park all the time; it has a lovely hillside and beautiful space for Frisbee throwing and kids to play. Mr. Stout said he doesn't want to see the whole area being taken up by a huge building. He said the picnic shelter would be taken out and one of his favorite walks and mediation areas are right where the building would be. He said a coffee shop won't work for him, and the neighbors want the natural area and wetlands. Mr. Stout said the neighborhood feels hopeless and that somebody in the City has decided to push this project in spite of all the neighbors saying they don't want it. Mr. Stout said this is not his idea of good community building. Mr. Stout said he picks up trash all the time because he is a good neighbor and asked who is going to pick up wrappers and cups from the coffee shop. Mr. Stout concluded he is against this project, even though Park and Recreation Director Blank made the building look compelling_ Vice Chair Davis introduced Janet Pfaffinger, 1815 Ives Lane N. Ms. Pfaffinger said her family uses the park nearly daily to run, walk, bike, kayak, and use the entire Medicine Lake path system. She said she was heartbroken and shocked to see the proposed size. Ms. Pfaffinger said it is a beautiful building, and she is a supporter of the arts, but not on this site.. She said the Parkers Lake and French Park conference rooms could be used as they are not used very often. Ms. Pfaffinger reiterated comments by neighbors and added she feels strongly about the wetland being filled, increased traffic, increased litter, and upsetting the eco system. Ms. Pfaffinger said she is mainly concerned about the visual aspect. She said the increased use will bring cars which is a concern as she is a biker and runner. Ms. Pfaffinger said we should exercise more and less car use would decrease our dependency on foreign oil. She said there is very limited free space and the proposed building will take care of that and bring in more traffic. Ms. Pfaffinger said this started as a 2,000 square foot structure, and is now 12,000 square feet. Ms. Pfaffinger said there was no public process for input and she is opposed. Vice Chair Davis introduced Bob Demeules, 1749 W. Medicine Lake Drive. Mr. Demeules said he had given input on all the plans, and now there is a grandiose building proposed which is too big for the site. He questioned the hours of a cafe coffeehouse. and asked who is the intended audience and what traffic impact would occur. He said a parking page 25 Approved Planning Commission Minutes October 1, 2008 Page 6 study was done, but he lives close and cars are constantly parked on 18,h Avenue. He said the parking lot would not be adequate for summer weekend weddings. Mr. Derneules said there is no lighting to cross the pathway at night to the parking lot nor adequate lighting for increased traffic on the roadway curve. Mr. Demeules concluded that lie would like to see sone building but this is too big for what is needed. Vice Chair Davis introduced Sharon Halvorsen, 268 Peninsular Road, Medicine Lake. Ms. Halvorsen said she loves the way the park is and has donated a bench and a memorial tree. She said she does not want to argue about the building, but hopes the City can preserve as many mature trees as possible. Planning Manager Senness asked Park and Recreation Director Blank to respond to the questions about whether there has been a demonstrated need for this facility. Park and Recreation Director Blank said the Comprehensive Plan addresses continuing development of recreation as needed. He said with 73,000 people in the city, we experience a 6% growth in activities annually. Park and Recreation Director Blank stated that available space has been maximized. He acknowledged that this is the neighborhood park, but it is prominent on Medicine Lake and is attractive to everyone which is why it has a city wide park designation. Park and Recreation Director Blank said staff is seeing the need of people wanting to register for year round activities. He said people do call and say why do we have to travel across town. Park and Recreation Director Blank said data is constantly gathered from people who sign up for recreation programs to determine if location, time, and rooms are good for the attendees. Planning Manager Senness asked Park and Recreation Director Blank to respond to the question of what would happen to the benches placed along the trail. Park and Recreation Director Blank said the benches will not be relocated. He said the lakeshore trail will stay exactly the same. Park and Recreation Director Blank said the trail will be repaved and may be realigned, but that will not affect benches. He added that they anticipate there will be more benches in the park. Planning Manager Senness asked Park and Recreation Director Blank what percentage of Plymouth residents take advantage of the programs offered and facilities at the park. Park and Recreation Director Blank said of the 1,800 city-wide classes offered, 60 — 70% are Plymouth residents. He said because there is no charge for using the park, trails or beach, there are no statistics on park usage. Planning Manager Senness asked why the food service is built in to the plan. Wage 26 Approved Planning Commission Minutes October" 1, 2008 Page 7 Park and Recreation Director Blank said the City wants park guests to receive typical service of a lakeside facility, such as snacks and beverages, and restrooms. He said the revenue stream for a private vendor would allow revenue to offset building operation costs. Park and Recreation Director Blank said notification was sent to City of Medicine Lake residents. Additionally, the Historical Society determined that no Indian mounds are on the site, and they granted a permit. Planning Manager Senness added the City sends notifications in excess of state law requirements. She said signage was also placed on the property to let people know of the proposed development. Park and Recreation Director Blank said the building would be completely handicapped accessible acid would have an elevator. Planner Doty said that the building would be sprinkiered. Planning Manager Senness asked for clarification on the wetland buffers and shoreland questions. Planner Doty said the wetland buffers are required when platting and subdividing a new property. One of the conditions in the resolution is that the park property be platted as a way of consolidating the park into a lesser number of properties. He added that this could be done through a consolidation at Hennepin County which requires no City review. Staff suggested a plat in this instance because of the number of properties {33}, but reiterated that the wetland buffer is not required with this project because there is no subdivision of land. Planning Manager Senness asked what features are addressed for water quality, PIanner Doty said the water quality improvement is related to the amount of the new impervious surface. He said treatment would occur through the use of an infiltration basin, and with pervious pavers. Mr. Warner added that an analysis was prepared and submitted to Basset Creek Watershed to show compliance. The results will be shared at the City Council. Planner Doty said when the City has an application for a project next to a lake or wetland, notice is sent to the DNR to ensure compliance with wetland mitigation and shoreland regulations. Planner Doty said the impervious surface is measured from the high water level mark, and the majority of the park property is wetland. Planner Doty clarified that although large amounts of wetland exist on the property, the portion of impervious surface is relatively small and there are upland areas along the peripheries of the park. Planning Manager Senness asked City Engineer Moberg to address traffic. Page 27 Approved Planning Commission Minutes October 1, 2008 Page 8 City Engineer Moberg said the W. Medicine Lake Drive classification is such that it would handle additional traffic. He said 18`h Avenue and W. Medicine Lake Drive is a stop controlled intersection and would accomplish a certain amount of traffic control and calming in this area. Planning Manager Senness asked Planner Doty to respond to questions about parking. Planner Doty discussed the two parking lots which have 70 and 62 parking spaces respectively. He said the zoning ordinance requirements for a community center are one space for every 300 square feet or 40 spaces for the building. Planner Doty said the parking study was completed to deterniine the spaces needed for general park use and occurred during midsummer months, and concluded the maximum number of spaces used was 47, confirming there would be enough parking spaces. Planning Manager Senness asked if the proposed Iighting would be sufficient, and what lighting additions would occur with the proposed plan. Planner Doty said the existing parking lots have lighting. One fixture would be added to each lot to achieve the right amount of lighting for safety and reduce any obtrusive light. Planner Doty said there would be some new trail lighting as well as lighting around the building to provide safe light levels within the park. He said the trail lighting would be acorn -style fixtures, similar to those at Parkers Lake park. Planning Manager Sexiness said the proposed structure does not meet LEED standards as the City of Plymouth has not adopted a policy that would require public buildings to meet LEED standards. Planner Doty said this building would require a building permit and the building code would detennine the number of required accessible stalls, and require handicap accessibility. Planner Doty added that would meet all fire safety requirements as regulated by the fire code. Vice Chair Davis asked about the issue of the site plan amendment. Planning Manager Senness clarified that initial improvements were done in 1995 1997 to construct the parking lots. She said at that time we did not require a site plan for those amendments. Commissioner Nelson asked about the wetland buffers and asked if the DNR commented on that. Page 28 Approved Planning Commission Minutes October 1, 2008 Page 9 Planner Doty said the DNR did not comment because the requirement for xvetland buffers is a city requirement. He said the plat consolidation would reduce the number of parcels down to one or two. Commissioner Nelson asked about the parking lot being located within the setback. Planner Doty said the wetland setback is 15 feet, unless subdividing a property. This plan meets the 15 -foot setback requirement. Commissioner Nelson asked if staff thinks that the 15 -foot setback is adequate. Park and Recreation Director Blank said to now impose a buffer, you would impose it on a parking lot that has been there for 12 years. He added that even without constructing the building, we continue to have a parking lot and trail theoretically within a buffer. In the real world, the trail and parking lot were there before the City thought about having a wetland buffer. Vice Chair Davis said the City is tightening the budget, and asked how this project fits in. Park and Recreation Director Blank said they have developed an operational budget, trying to establish revenue, rental rates for the space, and other revenue generated by the building. Commissioner Neset asked if there has been any progress to improve drainage downstream from two ponds in the 26`x' Avenue area. City Engineer Moberg said they are doing what they can within the limitations and easements as part of this year's street reconstruction projects. They are being utilized as drainage facilities and will continue after the street reconstruction. He said they did see a net reduction of impervious surface overall, with a narrower street. City Engineer Moberg said they would work with affected homeowners to get their permission to install rain gardens in the area. He said the two ponds technically are wetlands, and that limits what can be done. Commissioner Neset asked about the water retention on the north side of the building, and if there would be a NUTtP pond. Mr. Warner said the north side of the building has a depressed Swale with an engineered soil below, allowing water to percolate through, but catch any hard sediments. In this case, permeable pavers would also be used in the terraced area. Commissioner Neset restated there would not be a pond with open water along a trail with children. Page 29 Approved Planning Commission Minutes October 1, 2008 Page 10 Mr. Warner confirmed Commissioner Neset asked the square footage of the Parkers Lake facility. Park and Recreation Direction Blank said it is 3,000 square feet. Commissioner Petrash asked if any other sites were considered or if alternative sites on this location were an option. He asked if other profiles were considered for the building. Park and Recreation Director Blank said they did not consider other sites outside of this park. The park soil conditions dictated that this is the best building site using standard footings. Commissioner Petrash asked about alternative designs which would have a lower profile and less obstruction. Park and Recreation Director Blank said that to have a lower profile, the building ,got too long, and the goal was to leave trails around the building. He added the trail on the west side will now be an eight -foot wide concrete walkway capable accommodating fire truck access. Commissioner Neset asked what buildings or facilities similar to the proposal are available on the southeast end of Plymouth, specifically the East Medicine Lake park. Park and Recreation Director Blank said the East Medicine Lake park has restroom facilities. He said part of that property was donated by the Ryerson Steel Co. with limitations. Park and Recreation Director Blank said the parking area was reduced by half when the City put in the large NURP pond. Commissioner Neset asked what type of space is used for proposed activities east of I-494. Park and Recreation Director Blank responded that the major park is the Bass Lake playf eld, and the others are neighborhood parks. Commissioner Petrash asked if the priority is to put a facility in this location or to get the square footage to meet the needs of recreation. If the goal is square footage, lie asked if two locations could be used for building. Park and Recreation Director Blank said they could do either, but are trying to serve park visitors first and foremost. He said the secondary usage is putting programming and a gathering spot on the east side of the I-494. Park and Recreation Director Blank said the City can have all active presence on that side of the community, and added that the delivery of governmental services is changing. He said the building could be used for neighborhood Page 30 Approved Planning Commission Minutes October 1, 2008 Page A l meetings, AMLAC meetings, and ward council meetings. Park and Recreation Director Blank said the police department could conduct neighborhood crime watch training and would have better attendance. He said to keep an open mind that this building would be there 50 years from now, and asked what is the future of governmental services. Park and Recreation Director Blank said the City is trying to have a positive impact, and enhance and provide a facility that will be recognized as a focal point. Commissioner Aamoth asked if there is a high percentage of senior population in this part of the community, and what services would be provided for seniors. Park and Recreation Director Blank advised that the senior programs are currently focused at the Plymouth Creek Center, with one staff person located at that location. He added the new terminology for seniors is "active adult", as they are taking dance and yoga classes, joining the bike club, and bridge clubs. Commissioner Jaffoni suggested design alternatives be looked at such as using the porous pavers in other areas, and possibility reducing parking lot impervious surface to make the project more "green". Commissioner JaffOni said she has trouble knowing the condition Medicine Lake is in, and this new impervious area is being put right at that lake front, without buffers. Park and Recreation Director Blank said any building can be sized down, and from an economic point of view the second story could be removed. He said he is hesitant to reduce the parking lot because any spillover does get into the neighborhood. He pointed out that Parkers Lake has overflow parking on the north side of the park, but once you exceed the parking lot boundaries at the W. Medicine Lake park, you are in the neighborhood. Commissioner Jaffoni asked if the walkway porous pavers could be used on the west side of the building. Mr. Waaler said part of that area is designated to accommodate the weight of a fire truck. He said the remainder could use permeable pavers, but there would be a cost implication as these systems are twice as expensive because of the water treatment subgrade below. City Engineer Moberg cautioned the use of pervious pavers which have a lot of joints, which could pose safety concerns for pedestrian, bikers, and roller bladers. Commissioner Aamoth asked if this project had been discussed at the comprehensive plam-ting and public meetings. Page 31 Approved Planning Commission Minutes October 1, 2008 Page 12 Planning Manager Senness said this particular project was not discussed, but added the building was contemplated in the existing comprehensive plan and also the newly updated comprehensive plan. Commissioner Aaunoth asked if there was a process to engage citizens' opinions on this proposal or if it was a park survey. Park and Recreation Director Blank said the focus for the comprehensive plan update was on the rural area and the community meetings focused on northwest Plymouth, not the developed area ofPlyniouth. This park was complete, with the exception of a building. Vice Chair Davis asked the net effect of the tree removal. Mr. Warner said 16 trees in varying degrees of condition would be removed and 16 trees would be planted as part of the landscape plan. Commissioner Neset said he lived in this area for six years and often utilized the park. He said it is a special time as you wind through that woodsy part, and he appreciated that it is an interesting space. Commissioner Neset said he is trying to visualize that path, and questioned how those particular evergreens and that wooded hallway feeling would be preserved. Commissioner Neset said lie has concerns about the root zones of the trees being damaged. Mr. Warner said the project will not impact the trail and that area. He explained the grading would go inward from the existing trail edge to provide a flat area for building. Commissioner Nelson said as a resident on Medicine Lake you want to take ownership for the area around you, but there are also 73,000 people that like to use our parks. Commissioner Nelson said we have great parks in this city, which is one of the benefits of living in Plymouth. He said the city planners and people who oversee the parks do an unbelievable job creating spaces for the city's needs. Commissioner Nelson said not everyone is a biker or boater but they like to be in an area with a nice facility. He said he will vote in favor of the site plan amendment. Commissioner Petrash said being "green' is not required but being a public building, we should at least try to make it as "green" as possible. He said he did not know what the additional cost would be, but it might be worth it to show as a leadership model for what we want to see in the rest of Plymouth. Commissioner Neset agreed with Commissioner Nelson and will support the project, but he said he has concerns about retaining a natural state at the one wooded section along the trail. He said he is uncomfortable with the size of the building. Commissioner Neset said he enjoyed living on the southeast side of Plymouth, but always drove to Parkers Lake, as Page 32 Approved Planning Commission Minutes October 1, 2008 Page 13 there is not much going on on that side of the city. Commissioner Neset said long teen. this is important for the people east of I-494. He reiterated that he wanted care taken to preserve the beauty of the wooded area. Commissioner Aamoth said he has empathy for the neighborhood residents as this would change the area from a neighborhood park to a city-wide park. He said we have an obligation to balance neighborhood and citizen needs and do what is best and provide needed services for the entire city. Commissioner Aamoth said we can learn from this process to see better dialogue with neighborhoods and to be more proactive with outreach for future projects. He said he would feel more positive if he sensed there was a huge desire from the community for this building. Commissioner Aamoth said our role is to deternline if the proposal meets the criteria and will support it so the process continues. Commissioner Jaffoni concurred with the earlier comments regarding resident involvement in the process as they will have to see this building every day and not be able to walk through it and get the same feelings. She said she has strong reservations about that. Commissioner Jaffoni said the City prides itself of being very cognizant of wetland issues and taking care of our lakes. Medicine Lake has always been a primary concern to improve water quality and this proposed building won't help much in that regard. Commissioner Jaffoni said she would like to see this building smaller and more "green". She said she will vote to approve so it moves forward, but encouraged city officials to look at addressing the objections by adding on to other locations or making it smaller and making it as green as possible. MOTION by Commissioner Nelson, seconded by Commissioner Neset, to approve the request by the City of Plymouth for a site plan amendment and conditional use permits for a multi -use park recreation building for West Medicine Lake Park located at 1920 West Medicine Lake Drive. Rall Call Vote. 6 Ayes. MOTION approved. Vice Chair Davis recessed the meeting at 9:17 p.m. for a five-minute break. D. LCS DEVELOPMENT (2005085) Vice Chair Davis introduced the request by LCS Development for an amendment to the Planned Unit Development (FUD) general plan and preliminary plat for "Trillium Woods", a continuing care retirement community to be located on property at the southeast corner of the intersection of County Road 47 and Juneau Lane. Senior Plarmer Darling gave an overview of the staff report. Commissioner Jaffoni asked about the wetland impact from the southernmost townhomes. Page 33 Approved Planning Commission Minutes October 1, 2008 Page 14 Senior Planner Darling said the applicant had not proposed to impact this wetland, but there was a retaining wall in the buffer which would have to be moved. She said this retainin4 wall was removed with the grading change. Vice Chair Davis asked how many trees would have to be removed as a result of the proposed change. Senior Planner Darling said the percentage of tree removal remains at approximately 50%. Vice Chair Davis introduced the applicant, Steven Nornes, Project Development Manager for LCS. Mr. Nornes said this requested change is market driven. He explained that focus groups viewed the plan as favorable. Mr. Nornes said people had put 51000 down to be on the list indicating where they wanted to be and there was a good distribution with sign ups for the Woodland Terrace apartment units. He said now they want to be in the main building because of winter conditions and they want to be part of the community. He said there were over 70 sales, but no sales of the Woodland Terrace units. Mr. Nornes said they view this an opportunity to stop and take a look at that the fact that people have a preference to be in the main building. Mr. Nomcs said they are now over 50% sold and ahead of their projection; they are on target to start construction Spring, 2009. Vice Chair Davis introduced Mike Miller, Rice Fergus Miller Architects, who stated the number of trees being removed would be reduced from 393 to 379. He reviewed the original layout of the buildings, and showed revisions which break up the long facade of the main building. Mr. Miller said a selling feature has been design and the modern interpretation of the prairie style architecture. Vice Chair Davis opened and closed the public hearing as there was no one present to speak oil the item. Vice Chair Davis said this project has already been approved, and a reflection of the market requires that some changes be made to the plan. He said lie was a little disappointed that additional trees will be disappearing, but this is still a good project and a benefit to the community, and lie would be approving the change. MOTION by Commissioner Nelson, seconded by Commissioner Neset, to approve the request by LCS Development for an amendment to the Planned Unit Development (PUD) general plan and preliminary plat for "Trillium Woods a continuing care retirement community to be located on property at the southeast corner of the intersection of County Road 47 and Juneau Lane. Roll Cali Vote. b Ayes. MOTION approved. page 34 Approved Planning Commission IN-Iinutes October 1, 2008 Page 15 8. NEW BUSINESS 9. ADJOURNMENT MOTION by Vice Chair Davis, without objection, to adjourn the meeting at 9:51 p.m. Page 35 Revised: 10/14/08 City of Plymouth Engineering Department Active and Pending Public Improvement Projects Proj. orCIP Proj. Proj. Estimated No, Type Project Description Manager Consult Total Cast Current dotes Active Public Improvement Projects 1013 S Fernbrook Ln. - 27th to 34th - DC/BM SRF $5,741,000 Construction started on 7116/07. Utilility cordination for 2008 held Design & ROW & Construction on 3/4108_ Xcel Energy has relocated the two power poles south of Hwy 55 as of April 1. Eureka Construction is antcipating starting the remaining work beginning the week of April 14. all work except for restoration with seed sod and plantings south of Hwy 55 to be complete on or before 6127108. All underground work and retaining wall south of hwy 55 completed as of 516/08. Sidewalk and trail north of TH 55 completed on 5/23. Base paving south of TH 55 completed on 5123. All concrete work expected to be completed by 6118. Final bituminous layer and pavement marking expected to be completed by 6127.Final paving and striping completed 7/7/08. 10115/08 Contractor completing punch list items. 3105 WR Plymouth Creek Pond DA Wenck $900,000 Westwood is preparing the wetland replacement plan application. There are discussions with BARR Eng regarding a feasability study for the Plymouth Creek stream restoration project which may be able to be used for part of the wetland replacement requirement, Staff has a meeting with the Army Corps of Engineers on July 29th to discuss wetland mitigation. Permit applications are expected to be submitted to the Army Corps, DNR, and Bassett Creek Watershed by the end of September. Westwood has provided a draft Wetland Permits Application. That application was reviewed with the USACOE, BWSR, and Hennepin County. The final Wetland Permits Application should be ready in the next couple of weeks. 4135 WR CR 61/CR 9 Erosion Site DC BRA $350,000 Contract awarded to G.F.Jedlicki, Inc. on 5/13. Preconstruction meeting held on 5/29108. Clearing and grubbing of trees north of Co. Rd 9 along with installation of silt fence and orange safety fencing. As of 8115/08, 95% of work including restoration completed north of Co. Rd 9. All pipe work, pond dredging and riprap drainways compleded as of 9/12/08 south of Co Rd 9. Live stake lantin s to be installed after 10/15. 4145 S S_ Shore Drive Bridge JR BRA $350,000 Final plans have been approved by MnDOT. Waiting to see when Replacement funding becomes available. 5102 S CR 101, CR 6 to CR 24 DC/BM Henn. Co. $17,000,000 Preliminary layout of CR 101 approved by City Council on 10/11105. The plan is 30% complete. Met with Hennepin County 4/4/06. City staff will do engineering for watermain replacement. EAW comments received and approved by County. The plan is 90% complete. The County has sent out property acquisition letter to affected property owners. City working on watermain replacement plan. Condemnation has been initiated by the County. Current schedule anticipates receiving Bids in May 2008 and starting construction in August, 2008. City Council Orders Improvement of Co. Road 101 on 2/26 and special assessments become pending. County revises schedule to a bid opening on 8112/08 with construction starting on 10113108. Xcel Energy started relocating both its undergroung and overhead lines the end of March. Some clearing of trees was also necessary to facilitate thier work. Environmental assessment public hearing was held on 5/14/08 at Hennepin County Public Works facility in Medina. County staff indicated the project will be bid in December 2008 with construction to be in April 2009_ Page 1 C:1Documents and Setting sllbairdlocaI SettingslTemporary Internet FileslOLK1811Active Pendmg_Proj_Rpt_10 Page 36 Revised: 10/14108 City of Plymouth Engineering Department Active and Pending Public Improvement Projects Proj. or CIP Proj. Proj Estimated No. Type Project Description Manager Consult Total Cost Current Notes 5122 S CR 24, Olive Ln. to 32nd Ave. DC/BM Henn. Co. $2,500,000 Preliminary layout approved by City Council 6114105. Construction scheduled for 2008. Design in progress. Received Draft Layout 2121106. Met with Hennepin County design staff on 512106. City staff will do design engineering for watermain replacement. Met with utility companies on 5/24/06. Received draft plan on 5123106_ City watermain replacement plan completed and submitted to the County. Project has been put on inde5nate hold by Hennepin County. 6103 WR Repair Erosion - Wood Crk. DA/BM Wenck $425,000 Project is complete, with the exception of minor punchlist items. 6108 S Intersection Imp. - CR 47 & CR DC $1.2 million Curb and gutter is complete and base course paving has been 61 done. Intersection (including the new turn lanes) is open for traffic for the winter. Next spring the concrete islands will be installed, the final lift paved and all restoration completed. Median curbs are scheduled to be placed the week of 5126. All concrete work expected to be completed by 6120. Final paving and striping completed 6/28108. Minor punch list items to be completed by 10117. 6113 WR Wickman Erosion Project JR $250,000 Contractor has performed all punchlist items. 7101 S 2007 Street Reconstruction JR $3,620,000 Project is complete, with the exception of minor punchlist items. Project - Hawthorne Ponds Area, 7107 S 2007 Street Reconstruction JR $4,245,000 Project is complete, with the exception of minor punchlist items. Pro ect - City View Acres 7111 WR Mooney Lake Pump Project DT/BM Wenck $250,000 Project was included in MCWD GIP for 2007. A cooperative agreement with MCWD was executed. Final park planting restorat8on work was done along with the bike trail repair. Construction has been completed including final electrical power connections from Excel Energy, and a start-up test. Start up successfully completed on 1019. 7114 W Well 16 and Watermain SN ERA $1,710,000 Wellhouse plans are going to Planning Commission on 517/08. Watermain plans are 75% done and in for comment. Wellhouse site plans to be considered by City Council on 5127. Well plans are completed and construction bids will be considered for approval by Council on 718108. Well construction contract was awarded 7/8108 and construction is underway. Raw watermain contract is out for bids and is scheduled for opening of bids on 1011108. Wellhouse plans are 90% complete. Award of water main contract to be considered by City Council on 10114. Well drilling is 30% com late. 7135 WR Wild Wings Wetland Cleaning DA $175,000 Comments on the EAW were recieved from the MN DNR, MPGA, and Metropolitan Council. Several residents spoke in favor of the project at the public hearing. Permit applications have been submitted. Staff has drafted responses to comments for consideration at the September 23, 2008 City Council meeting. Council adopted a declaration of Need" for an Environmental Impact Statement based on the EAW, therefore the 30 day permit review by the DNR is initiated. Page 2 CADocuments and SetlingsllbairdlLocal SettingsUemporary Internet FileslOLK1811Active_Pending_Proj_Rpt_I Page 37 Revised: 10/14/08 City of Plymouth Engineering Department Active and Pending Public Improvement Projects Proj. or CIP Proj. Proj. Estimated No Type Project Description Manager Consult Total Cost Current Notes 7138 WR TH 55 Culvert Replacement DA S.E.H. $485,000 Design is near completion and initial submittal to MnDOT has been and Wetland Cleaning Proejct done. SEH will be reviewing downstream effects of pipe size increase and recommending channel cleaning parameters downstream. Permits have been submitted to the DNR and USACOE. A permit to the BCWMC is required. 90% Plans have been submitted to Mn/DOT for review. Rights of Entry have been secured from the property owners on the north side of TH 55. Cooperative agreement with MnIDOT to be considered by City Council on 5/27. Construction plans to be considered for approval by City Council on 718/08. Construction contract awarded 8126108 with Change Order No.1 to be considered by Council on 919108. Preconstruction meeting scheduled for 9/12/06_ Construction to be done as weekend work in September 1 October 2008. Permits have been recieved from the Army Corps of Engineers. Bassett Creek Watershed permit has been obtained for the culvert replacement. Culvert replacement to begin 10116 and will be completed 10120, weather permitting. Highway 55 to be closed 8101 S 2008 Street Reconstruction JP $8,100,000 The final lift of asphalt is scheduled to be installed on the Project entire west side of the project on 10120 and 10121. In the next week, all final concrete work will be completed on the east side of the project. Sodding and final cleanup should be completed on the job in the next two weeks. A punch list for the job will be created in the near future, and those items will be addressed as soon as possible. 8104 S 36th Avenue Street JR $550,000 Project delayed until 2009 due to Library and private development Reconstruction construction. 8105 S Hwy. 169 Frontage Road RIR DC $80.000 Council approves agreement with UP Rail on 2112108. Construction Crossing Replacement expected to begin Thur. 10116 and be complete by Wed. 10122. 8106 S 2008 Temporary Overlay JR $370,000 Project has been completed by Northwest Asphalt. Project 8107 WR 26th Avenue Bridge JR BRA $250,000 Bridge Funds are not available this year. This project will be Replacement delayed until next year, when MnDOT funding is expected to be available. 8108 SS 28th Ave. Lift Station Upgrade JR/SN BRA $600,000 Engineering Construction & Innovations, Inc. is the low bidder. Forcemain installation has been completed. Wet well construction to resume on 8127. Wet well construction completed. Electrical work is underwa . 8109 S Niagara Lane Mili & Overlay DC $600,000 Plans and specifications approved on 2112108. Bid opening is Project March 20 at 10am. Lowest bidder is ASTECH Corp. Contract awarded on 418108_ Construction began 7/17108. All concrete work completed by 8122108. Project is complete except for pavement markings and sodding of boulevard areas. All items complete except for 25% of boulevard restoration and minor cleanup. 8110 S Fire Station #1 Parking Lot JR $145,000 Hardrives is complete with Phase A of the project and currently Reconstruction workin on Phase B. 8111 SS 2008 Sanitary Sewer Lining JR $373,000 Veit has completed the contruction and has submitted the video of the fining. Staff preparing a punchlist for the project. 8112 P Old Rockford Road Trail JR $155,000 DMJ has completed the project with the exception the sign installation. Page 3 CADocuments and Set ling sklbairdkLocal SettingsUemporary Intemet FlleskOLK1811Active_Pending_Proj_Rpt_10 Page 38 Revised: 10114/08 City of Plymouth Engineering Department Active and Pending Public Improvement Projects Proj. orCIP Proj. Proj. Estimated No. Type Project Description Manager Consult Total Cost Current Notes 8113 WR 2008 Minor Drainage Impr. DTIDA WSB $200,000 These include 805 Ithaca, Cimarron Ponds, Camelot Overlook, 305 Magnolia, 315 Alvarado, 12th/Harbor LN, 41st & Goldenrod and Chelsea Woods. The 315 Alvarado site and the Camelot Overlook sites have completed plans and watershed approvals. 30 day tree removal notification letters will soon be sent out for the Cimarron Ponds and Alvarado sites with work expect to begin in late November. The Camelot work is expected to commence in late - winter. Complete projects include 805 Ithaca and 305 Magnolia. On September 9, 2008 the City Council rejected all bids on the Chelsea Woods and Mission View sites. The 12thlHarbor LN site will be done concurrently with a 2010 street recon project. 8115 WR Timber Creek Improvements JRIDA $375,000 A neighborhood meeting is scheduled for Monday June 16th at bpm in the Council Chambers to hear neighborhood concerns and review the wetland and survey information. Staff had a second neighborhood meeting on August 4th to review draft plans with the residents. Staff was on-site for the 3rd neighborhood meeting on August 27th to discuss proposed tree removals with residents. Permit applications have been submitted to the Army Corps, MN DNR, and Bassett Creek. Final plan sets are due in the next 2 weeks for consideration by the City Council at the first scheduled meeting in October. Council is considering approval of pians and specifications at the October 14, 2008 City Council meeting. Pending Public Improvement Projects ..... W-2 W Watermain -Vicksburg Ln. - *... $750,000 Dependent on development. A portion of the water main is CR 47 to Schmidt Lake Road anticipated to be installed pending approval of the Wood Crest development. Construction of the Wood Crest portion will begin in September. W-3 W Watermain - Cheshire Ln. - $370.000 Dependent on development. Construction is anticipated to be Glacier Vista to CR 47 started in 2009. BB jBud Broekema SS Sanitary BM lBob Moberg P Parks DC JDan Campbell W Water DT I Dave Taylor WR Water JP Joe Paumen S Street JR Jim Renneberg SN Scott Newberger Unassigned Page 4 C:1Documents and Settingsllbaird\Local Settings\Temporary Internet Files1OLK1811Active_Pending_Proj_Rpt_1014 Page 39 700 - eao Sao 400 u 4 30° 200 ,00 0 117 CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447 DATE: October 13, 2008 TO: Laurie Ahrens, City Manager cc: Steve Juetten Vii`-) FROM: Barbara Senness, Planning Manager SUBJECT: Hennepin County Adult Correctional Facility (HCACF) Population Report Hennepin County Community Corrections staff has submitted their monthly report on average daily population for the month of September, 2008. The average daily population reported for the Plymouth facility was 570, less than the occupancy limit of 601 set by the Conditional Use Permit. The chart below shows the average monthly population since June of 2000 HCACF Monthly Population Report n � MonuvYea r i a nverae I Page 40 I�i V i MonuvYea r i a nverae I Page 40 O DlgkQ CT 481 6 V 4' 0 ROD D I ON LE area schoots October 8, 2008 Dear Neighbor: PLYMOUTH MIDDLE SCHOOL 10011 36TH Avenue North . Plymouth MN 55441 . 763-504-7100 • Fax (763) 504-7131 Bruce K. Beidelman, Principal Erick D. Norby, Assistant Principal Robbinsdale Area Schools is pleased to announce the substantial completion of the renovation work at Plymouth Middle School (PMS). We would like to thank all of you for being so patient with the ongoing construction work which began during the spring of 2006. The work has included the renovation and reroofing of the 40 year old, approximately 200,000 square foot facility including new plumbing, heating, air handling and lighting systems to address deterioration and regulatory compliance to produce an efficient and healthy learning environment. To save funds and minimize the overall length of the disruption, the construction timeline was shortened by continuing work during the school year. The sixth grade relocated to the Olson School building for the 2007-08 year, while the seventh and eighth grades occupied two of the three PMS wings and revolved as work progressed. By shortening the timeline and enabling continuation of contractor activity, the district saved taxpayers an estimated $5 million in labor and materials costs. While the building is now being fully occupied by students and staff, some work remains to be completed over the coming year including landscaping and sod installation, striping of the east parking area, completion of metal roof counter flashings, new aluminum doors at building entrances, paving parking areas, and sidewalk placement and repair. Now that the major renovation items have been completed, we would like to invite you to an open house to tour the school, meet staff and enjoy refreshments. You are invited! What: Plymouth Middle School Open House Where: 10011361h Ave. N, Plymouth When: Tuesday, October 21, 6 p.m. — 7:30 p.m. Why: An opportunity for residents to see this newly completed public investment For those of you celebrating Shemini Atzeret, we apologize that we could not avoid this holiday. Please contact me to schedule a tour at your convenience. We thank you for your patience during the revitalization of our school which will serve our community for years to come. Please feel free to contact me at 763-504-7101 with questions or concerns. Sincerely, Bruce Beidelman Principal, Plymouth Middle School Robbinsdale Area Schools www.rdale.k12.mn.us Page 41 CITY OF PLYMOUTH 3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447 DATE: October 16, 2008 T0: ayor and City Council, Laurie Ahrens, City Manager FROM: a Evans, Superintendent of Recreation through Eric Blank, it ctor of Parks and Recreation SUBJECT: Plymouth Creek Center Catering Contracts Brief Background: On November 15, 2007, Suzanne's Cuisine closed their business after a seven year relationship with the City of Plymouth. As a result, the City initiated an in-depth RFP process from which twelve interested companies were paired down to three exclusive caterers: Medina Entertainment Center (Medina), Town and Country Catering (Plymouth) and Mintahoe Hospitality Group (Minneapolis). At the November 27, 2007, City Council Meeting, staff was authorized to enter into a one year contract with the option for a three year extension with each of the three catering companies. The three year extension is automatically renewed until December 31, 2011 if the contract is not terminated. Current Status: The Plymouth Creek Center and our catering partners have hosted 90 catered events (January -September, 2007). The events have included weddings, small meetings, special events, Bat/Bar Mitzvahs, and City functions. Based on survey data from the rentals (attachment), all of the caterers have done an outstanding job. As well, staff have received very few complaints, are happy with the variety of options available to patrons, and have developed a professional business relationship with each of the caterers. In addition, we have seen an increase in both rebate revenue and the number of catered events. Therefore, staff will allow the automatic extension (through the year 2011) to be activated. Per the contract, the City of Plymouth and/or the caterer has a 30 day written termination clause in place to accommodate service/ performance issues. DE Page 42 Plymouth Creek Center Review of Catering Contracts 2, to a �+ L L ro ?*an TOWN Et COUNTRY CATERING a u o W _ CATERED EVENTS v,< Q z LnG Catering Coordinator Communication Timely COMPANY JAN FEB MAR APR MAY JUN JUL AUG SEPT TOTAL Town & Country 2 3 1 1 2 7 4 4 3 27 Medina 2 2 3 5 11 6 4 9 4 46 Mintahoe 0 1 0 0 3 3 4 3 3 17 86% 4 6 4 6 16 16 12 16 10 90 2007 - 61 Catered Events through September REBATES COMPANY CATERING PAYMENT (Thru 8131107) Town Ft Country $12,167.88 Medina $11,241,55 Mintahoe $12,313.96 $35,723.39 (8131/07 Comparison - $29,507) SURVEY DATA SATISFIED CUSTOMERS 97% Comments: Very friendly, Just excellent -would use them again, They had two different companies to work with -more affordable, Misty was more than accomodating and was the best vendor we worked with for our wedding, The pricing -very reasonable, Most economical choice -we were really happy with customer service, They kept throwing drinks away that people were drinking -but dancing Page 43 2, to a �+ L L ro ?*an TOWN Et COUNTRY CATERING a u o W _ v,< Q z LnG Catering Coordinator Communication Timely 86% 14% Catering Staff Availabile to Assist 71% 29% Menu Options Et Fees Clearly Provided 71% 29% Food Selection Et Pricing were Acceptable 57% 43% Beverage Selection Et Pricing were Acceptable 71% 15% 14% Food Presentation Met Expectations 86% 14% Food Quality was Excellent 86% 14% Food Quantity was Acceptable 86% 14% Service Staff were Professional Et Courteous 71% 15% 14% SATISFIED CUSTOMERS 97% Comments: Very friendly, Just excellent -would use them again, They had two different companies to work with -more affordable, Misty was more than accomodating and was the best vendor we worked with for our wedding, The pricing -very reasonable, Most economical choice -we were really happy with customer service, They kept throwing drinks away that people were drinking -but dancing Page 43 SATISFIED CUSTOMERS 82% Comments: Medina responded in a timely manner, Communication was excellent, Responsive -flexible pricing, Staff did a great all-around job!, Best price and easiest to communicate with, Beverage pricing was very high, The food was excellent, Missy was fabulous, Charged for deCaf Coffee and we wanted regular W ar L. a, MEDINA CATERING N a z c a`n J o Catering Coordinator Communication Timely 86% 7% 1296 7% Catering Staff Availabile to Assist 57% 14% 7% 14% Menu Options Et Fees Clearly Provided 50% 43% 12,% 7% Food Selection Et Pricing were Acceptable 64% 15% 14% Beverage Selection Et Pricing were Acceptable 57% 7% 14% 21% Food Presentation Met Expectations 65% 21% 7% 7% Food Quality was Excellent 71% 14% 1490 Food Quantity was Acceptable 71% 140% 1490 Service Staff were Professional Et Courteous 74% 7% 77/a 7% SATISFIED CUSTOMERS 82% Comments: Medina responded in a timely manner, Communication was excellent, Responsive -flexible pricing, Staff did a great all-around job!, Best price and easiest to communicate with, Beverage pricing was very high, The food was excellent, Missy was fabulous, Charged for deCaf Coffee and we wanted regular SATISFIED CUSTOMERS 85% Comments: The prices were most reasonable, When we went for the taste testing - everything was presented beautifully, Overall we had a very good experience, Good price Et menu selection, Website appeal, quick response to initial inquires, We would have liked more contact with staff at the end. Page 44 a anon ad a, a, MINTAHOE CATERING o a o, a � z 0�a v►c Catering Coordinator Communication Timely 25% 63% 1296 Catering Staff Availabile to Assist 25°0 38% 37% Menu Options Et Fees Clearly Provided 25% 63% 12,% Food Selection Et Pricing were Acceptable 38% 50% 12% Beverage Selection Et Pricing were Acceptable 25% 38% 25°0 120/0 Food Presentation Met Expectations 250//0 75 % Food Quality was Excellent 38% 62% Food Quantity was Acceptable 38% 62% Service Staff were Professional Et Courteous 63°4 12% 25% SATISFIED CUSTOMERS 85% Comments: The prices were most reasonable, When we went for the taste testing - everything was presented beautifully, Overall we had a very good experience, Good price Et menu selection, Website appeal, quick response to initial inquires, We would have liked more contact with staff at the end. Page 44 October 14, 2008 The Hon. Kelly Slavik City Of Plymouth 3400 Plymouth Blvd Plymouth MN 55447-1482 Dear Mayor Slavik, 0 C T 1 A 2008 I am pleased to share with you that the Northstar Commuter Rail Project is on time, on budget and is maintaining a strong safety record as we prepare to launch the state's first commuter rail service late next year. The locomotives and coach cars are being manufactured and the first locomotive was delivered to the Vehicle Maintenance Facility on October 3. Nearly 60 percent of project construction is complete. Elected officials' continued support of Northstar has been instrumental to the project's success. Meanwhile, Northstar Commuter Rail enjoys continued strong public support and anticipation — better than 80 percent — which we expect to grow along with continued high gas prices and traffic congestion in the region. Commuters and businesses from Big Lake to downtown Minneapolis soon will have a cost-effective, fast, safe and reliable transportation alternative. Northstar has reached many significant milestones in the last year thanks to the hard work of local, state and federal policy makers, the business community and Northstar supporters. Here are some of those milestones and progress to come: Station Construction Begins, Downtown Minneapolis Connection Progresses This summer, we broke ground at Northstar stations in Anoka, Coon Rapids, Big Lake and Elk River, where construction is approximately 37% complete and expected to be finished this calendar year. Also, crews have completed preliminary work for the future Fridley station by building tunnel infrastructure at the site. We are hopeful the station will qualify for construction funding from the new metro sales tax provided by 2008 legislation and approved by the metro area counties joint powers board (the Counties Transit Improvement Board or CTIB). Meanwhile, in downtown Minneapolis, workers are continuing work started last fall on Northstar station platforms and train tracks that will allow for connecting service between Northstar and the Hiawatha Light Rail Transit Line at the site of the new Twins' ballpark. At no extra charge, Northstar passengers will be able to connect to LRT, with service to the Metrodome, the airport and the Mall of America, as well as to the metro area bus system. The downtown ballpark station also will provide access to the Minneapolis skyway system. This work is 54% complete. (over) Northstar Corridor Development Authority 2100 3rd Avenue, Anoka, Minnesota 55303-2265 1-888-478-NSTAR (6782) (763) 323-5700 Fax: (763) 323-5682 www.mn-GetOnBoard.com Page 45 In the future, the downtown station will become increasingly important as other transit corridors are developed and as the Northstar Corridor Development Authority and the CTIB continue to consider opportunities to expand Northstar and link it to other transit systems. Maintenance Facility Construction Moves Along Workers have made notable progress on the vehicle maintenance facility in Big Lake since they broke ground last fall. The facility is approximately 80% complete. The structure's exterior and mechanical work will be substantially complete early in November, and crews are laying train tracks next to the BNSF Railway main line tracks to allow Northstar vehicles to reach the facility for fueling, cleaning and routine maintenance. Northstar Locomotives and Passenger Cars on Order On October 3, we received the first of Northstar's five locomotives. The remaining four locomotives will be delivered over the next several months. The delivery of 17 passenger cars will begin in the spring. The vehicles feature a design that includes interlocking arcs of red, yellow and white on a blue background, leading to a bold yellow star. The design incorporates the original Northstar star icon and complements the current design of the Hiawatha LRT Line, which will connect with Northstar in downtown Minneapolis to form a 51 -mile transit corridor. The Legislature's 2008 approval of a sales tax exemption for Northstar vehicles will allow the project to save about $3.3 million. Northstar Launches New Web Site Last, but certainly not least, Northstar recently launched a new web site that provides Minnesotans valuable information about what to expect when commuter rail service begins. Visitors are encouraged to plan their trips, learn how to use the service, become familiar with commuter rail safety and view photos, project updates and new animations. Please visit the site at wAw.mn-OetOnBoard.com. Northstar officials are happy to provide you with further information about progress on the project. Please contact us at 763-323-5700 if you have questions or concerns as we get ready to ride the line in 2009! Sincerely, Dan Erhart Chair, Northstar Corridor Development Authority Page 46 ro strengthen and promote cities as centers of opporrunify leadership, and governance Q" September 29, ?008 National League of Cities Calvin Portner 1301 Pennsylvania Ave., N -W. Admin Svcs Director, Plymouth Washington, DC 20004-1763 3400 Plymouth Blvd 202-626-3DOO Plymouth' MN 55147 Fax: 202-626-3043 wWW.nlc.Drg Dear Calvin Portner: m orrt:ers President I am pleased to present NLC's City Fiscal Conditions in 2008 research brief. Thanks Cynthia McCollum to your response, and those of your colleagues in other cities and towns, we were able Council Member Madison. Alabama to compile a clear picture of the overall state of municipal finances in the United First Vice President States in 2008. Kathleen M. Novak Mayor Norttlglenn,Colorado This month, NLC released the findings of the report, summarized in the research Second Vice President brief, to the news media. The survey results were covered by the Associated Press, Ronald D. Loveridge Mayor Mor CNN Money, U.S. News & World Report, other large media outlets, and a variety of Riverside, California regional and local press. This annual report and its findings are regularly used by Immediate Past President federal, state, and local decision makers as the authoritative source of information on Jamas C. Hunt Councilmember the financial health and circumstances of America's cities and towns. Clarksburg, West Virginia Fxecot"e°irEctor Thank you for your help on this important report_ We will be conducting the 2009 Donald J_ Brinit survey of city fiscal conditions next Summer, and we thank you in advance for your continued support of our work on behalf of America's cities. If you have any questions, please contact me hoene@nlc.org. Once again, thank you for your participation. Very truly yours, e& a apher w. xuaw Christopher W. Hoene Director, Policy and Research Enclosure Past Presidents. Clarence E Anthony, Mayor, South Hay, Florida • Jahn DeStefano. Jr., Mayor, New Hanan, Connecticut • Brien J. O'Neill, Councilman, Philadelphia, Pennsylvania Direcrerec John S. Brenner, Mayor. York, Pennsylvania • Carl Brower, Mayor, WoNia, Kansas • Susan Burgess, Maynr PmTem. Charlotte, North Carolina • Susan J. Cave, Executive Director, Ohio ItlumcipaP League • Malcom Chapman, Aldemean, Rapid City, South Dakora • Miguel M. Chavez, CouncdoriMayor Pro Tem, Santa Fe. Neu Mexico • Marshand K. Crisler, Counatmember, Jackson„ Mississippi • Joseph A. Cotialone, Mar, Somerville, Massachusetts • Deborah Denard Delgado, Councilwoman, Hattiesburg, Mississippi • Doug Echols, Mayer, Rock Hill. South Carafina • Pat Eklund., yo Mayor Pro Tem, Novato, California • James J. Finley, Jr, Executive Director and CFO, Connecucut Conference of Municipalities • John P. Franklin, Councilmember, Chattanooga, Tennessee • J. David Fraser, Executive Director, Nevada league of Cities and Municipalities • Donald A. Greesser, Mayor. ilaision, Nebraska • Jeanne Harris, Cournourtember, Vancouver, Wasninglon • Doun S. Hester, Codocilwoman, Nadelk. Virginia • Deborah Aa Hill. Council Member. Warrensville Heights, Ohio • Michael E Johnson, Cru almember, Phoenix. Arizona • Bobby G. Kilgore, Mayor, Munive. Noris Carofirra • Jennifer L Kim, Cmriciimemher, Austin. Texas • SyMFa L Lovely, Executive director. Kentucky League of Cities, Inc. • Robin Lowe, Council Member. Hemel, California • Daisy W. trouts, Commissioner, Odanda, Florida • Margaret H. Mahery, Executive Dire€tar, Tennessee Municipal League • Sam Mamet Fxecutive Director, Colorado Municipal League • Henry F Me, Councimember, Gaiuretsburq, Maryland • Tom Ed McHugh, Executive Director, Louisiana Municipal Association • Frank C. Oink, Mayor Pembroke Pines, Florida + Tzeitel Peres -Carat Member, Duane. California • Elizabeth C. Paterson, Mayor, Mansfield, Connecticut • Daniel S. Poeek, Mayor, Bedford, Ohio • Debbie W. Quina, Coun€Amembec Fauhope. Alabama • Sar Page Mayor Pro Tem. Normal. Minis • L Lynn Res, EcecuM Director League of Nebraska Municipalities • Snrglo Rodriguez Alderman, New Hoven, Connecticut • Steve Salazar, Coun€ilmem 47 'i'l�rtiaf.°apar Tzxas • Audwin M. Samuel, Councilmembeinvlayor Pro Tem, Beaumont Texas • James Taylor, Councilman, Littleton. Ccroiado • Dennis P. Zine, Councilman, Los Angeres, Calirumia September 2008 Confronted with declining economic conditions driven by downturns in housing, consumer spending, and jobs and income, city finance officers report that the fiscal condition of the nation's cities has weakened dramatically in 2008.' Among the findings of the National League of Cities' latest annual survey of city finance officers are: Two in three city finance officers (64%) report that their cities are less able to meet fiscal needs in 2008 than in the previous year; Final tallies for 2007 reveal that city revenues, when accounting for inflationary factors, remained flat (growth of 0.1%), while spending increased by 3.0%; As finance officers look to the close of 2008, they predict that revenues and spending will decline in inflation-adjusted terms, with revenues decreasing by 4.3% and spending decreasing by 1.5%; Property tax revenues increased by 6.3% in 2007, but are predicted to decline by 3.6% by the close of 2008; Spending pressures stem from rising costs, such as energy and fuel prices, public safety and infrastructure needs, and employee -related costs for health care, pensions, and wages; To balance annual budgets and meet ongoing spending needs, many cities are increasing fees and charges for services; and, Ending balances, or "reserves," remain at high levels and will provide a buffer against the current downturn. Ability to Meet Fiscal Needs In 2008, nearly two in three (64%) city Finance officers report that their cities are less able to meet fiscal needs than in 2007. City finance officers' assessment of their cities' fiscal conditions in 2008 has decreased significantly from their 2007 assessment, when 70 percent of city finance officers said their cities were better able to meet fiscal needs than in 2006. Pessimism about the ability to meet city fiscal needs in 2008 is similar to levels reported during previous periods of economic decline from 2002-04 and 1990-93 period. Finance officers in cities that are reliant upon property taxes are more likely to say that their cities are less able to meet fiscal needs in 2008 (75%) than finance officers in cities reliant upon sales taxes (52%) or income taxes (60%). City Issue 1008-1 City Fiscal Conditions in 2008 Michael A. Pagano Christopher W. Hoene I I M ichad A. Pagano is Dean of the College of Urban Planning and Public Administration at the University of Illinois at Chicago. He has written the annual City Fiscal Conditions report for NLC since 1991. Christopher Hoene is Director of the Center for Policy and Research at the National League of Cities. Christiana McFarland Research Manager at NLC. coordinated the conduct of the survey and edited the report. The authors would like to acknowledge the 319 respondents to this year's fiscal survey. The commitment of these cities' finance officers to this project is greatly appreciated. 2 All references to specific years are for fiscal years as defined by the individual cities. The use of 'cities' or -city- in this report refers to municipal corporations. b The city fiscal Conditions Survey is a national mail survey of finance officers in U.S. cities conducted in the spring of each year. This is the 23nd edition of the survey, Page 48 which began in 1985. National League of Cities FIGURE I Percent of Cities that Are "Better Able/Less Able" to meet Financial Needs in FY 2008 FIGURE_ IA By Taxing Authority Better Able Less Able FIGURE 113 By Region finance officers in the West (74%) are most likely to say that their cities are worse off in 2008, compared to cities in the Midwest (67%), Northeast (61%), and South (53%).' Approximately two in three finance officers in cities with populations greater than 300,000 (69%), between 100,000-299,999 (68%), and between 50,000-99,999 (6S%) report lessening ability to meet fiscal needs. Three in five (60%) finance officers in cities with populations below 50,000 say they are less able to meet needs. Revenue and Svendin _ Trends 3 Regional classifications are based on US Census- definedregions,'Northeast- includes cities in CT ME, NIA. NH. NI. NY. PA. Rl. VT. -Midwest- includes IN. Cities closed the books on 2007 with solidrowth in vear-to- ear general fund g y cities in IL IA. K5. MI. MN. MO. NE. ND. ON. SD. WL'South-includes J revenues, but that growth was eroded by the influence of inflationary factors in cities in -AL AR. DE. DC. FL GA. KY. LA. MD. MS. NC. -'West' the State and local sector. 100% government g AZ, CA, CO. NI. ID. MT. NV, NNI, OR. LIT. WA, 4%'Y 80°l0 68% 69% 73% 70% 65% fi51 60% 58 %° 54% 56% 45% 40% 33% 37% 36% 2i% 221 19% a� 20% v 0% q Irl - -20% - .' r 25% •: t -40% 3294 -31w -37% -35% ti- -42%a -afi1 ° -44 /o , � -60% -60% M Better able 0 ° -67/a G` Less able r. -63% -641 80% -79% -100°4 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 FIGURE I Percent of Cities that Are "Better Able/Less Able" to meet Financial Needs in FY 2008 FIGURE_ IA By Taxing Authority Better Able Less Able FIGURE 113 By Region finance officers in the West (74%) are most likely to say that their cities are worse off in 2008, compared to cities in the Midwest (67%), Northeast (61%), and South (53%).' Approximately two in three finance officers in cities with populations greater than 300,000 (69%), between 100,000-299,999 (68%), and between 50,000-99,999 (6S%) report lessening ability to meet fiscal needs. Three in five (60%) finance officers in cities with populations below 50,000 say they are less able to meet needs. 4 The General Fund is the largest and most common In current dollars, not adjusted for inflation, theyear-to year change in general fund fund or all cities, accounting for approximately two- revenues in 2007 was 4-S% over 2006 revenues. Looking to the close of 2008, city thirds of city revenues across the municipal sector. finance officers are expecting year-to-year revenue growth to slow to 1.1%. r Page 49 Revenue and Svendin _ Trends 3 Regional classifications are based on US Census- definedregions,'Northeast- includes cities in CT ME, NIA. NH. NI. NY. PA. Rl. VT. -Midwest- includes IN. Cities closed the books on 2007 with solidrowth in vear-to- ear general fund g y cities in IL IA. K5. MI. MN. MO. NE. ND. ON. SD. WL'South-includes J revenues, but that growth was eroded by the influence of inflationary factors in cities in -AL AR. DE. DC. FL GA. KY. LA. MD. MS. NC. -'West' the State and local sector. OK, SC, TN. TX. VA. WV, includes cities in W. government g AZ, CA, CO. NI. ID. MT. NV, NNI, OR. LIT. WA, 4%'Y 4 The General Fund is the largest and most common In current dollars, not adjusted for inflation, theyear-to year change in general fund fund or all cities, accounting for approximately two- revenues in 2007 was 4-S% over 2006 revenues. Looking to the close of 2008, city thirds of city revenues across the municipal sector. finance officers are expecting year-to-year revenue growth to slow to 1.1%. r Page 49 -A 5.0% pt0p State Funcis % - 15% .Fe Fa & Charges rya 11 % EbkL 1Sales 14% Taxes other Taxes Income Taxes 40, F C C O 4.2% 3.9% 4.0% N 4.0% % U3 L) N 3.0% 3.0% 2.7% 2.6% 2.5"0 2.6% 'ye 2.3% 2_3% 2.0% 1.$% % 1.4% 1.3,5% 1.4, 1.4% 1.2% , 1.0%2% 0.9% 1.1% 1.0% , 0.7% 5+0 0.3 � 0.2 � � D.1 D.0°/ p-1 0.0% rh g g W CIE (q W � A � � O O _11.01/6n Gam? A N N N O N O N O O N N -0.6% q 0 -2.0% -!7 `I -z.z% -3A% -4A% ■ Change in Constant Dollar Revenue (General Fund) i Change in Constant Dollar Expenditures (General Fund) 4390 -5.0% While the 2007 current -dollar revenue results suggest a positive picture of city finances, the purchasing power of city revenues was actually smaller than it appears. When adjusting for inflationary factors, the constant dollar, year-to- year increase in city revenues from 2006 to 2007 was 0.1%.' The 2007 level represents the Fifth year in a row that city revenues increased at relatively slow rates, or actually declined, from one year to the next. For 2008, city finance officers project that general fund revenue growth will decline at a more significant level - by 4.3% in constant dollars. Current -dollar growth in city spending for 2007 was 7.4%, resulting in actual year-to-year growth in constant -dollar spending of 3.0%. Yet, projected spending growth for 2008 is 3.8% over 2007 levels in current dollars, or in constant -dollar terms, spending levels are projected to actually decrease by 1.5%. Taken together, city finance officers' projections for 2008 revenue and spending point to a budget gap of 2.8% (4.3% decrease in revenues and a 1.5% decrease in spending) in constant dollars. Since city governments are reQuired to balance their budgets under state law, this budget gap suggests that many city governments are confronted with decisions in 2008 about raising revenues, reducing spending, or dipping into their reserves. Tax Revenues and the Econom The fiscal condition of individual cities varies greatly depending on differences in local tax structure and reliance. While an overwhelming majority of cities have access to a local property tar, many are also reliant upon local sales taxes and some are reliant upon local income taxes. ConseQuently, it is also worthwhile to understand the differing performance of these tax sources and the connections to broader economic conditions. FIGURE 2 Year -to -Year Change in General Fund Revenues and Expenditures (Constant dollars) Federal Dii er pt0p State Funcis % - 15% .Fe Fa & Charges rya 11 % EbkL 1Sales 14% Taxes other Taxes Income Taxes 40, F FIGURE 3 Municipal General Fund Revenue Composition 5 -Constant dollars- refers to inflation-adjusted dollars. -Current dollars refers to non -adjusted dollars. To calculate constant dollars, ive adjust current dollars using the US_ Bureau or Economic Analysis (BEA) National Income and Product Account INIPAI estimate For inflation in the state and local government sector. Constant dollars are a more accurate source of comparison over time because the dollars are adjusted to account for differences in the costs of state and local government. 6 For more information on variation in local and state tax structures_ we Cities and State Fiscal Structure. NLC 120081 at htlp-L//%".,vale org/restaures_for_citics"pabiication5/1637_ aspx- Page 50 Focal property tax revenues are driven primarily by the value of residential and commercial property, with property tax bills determined by local governments` assessment of the value of property- Property tax collections lag the real estate market because local assessment practices take time to catch up with changes in the market. As a result. current property tax bills and property tax collections typically reflect values of property from eighteen months to two years ago. 6% ■ Sales Tax Collections ■ Income Tax Collections Property Tax Collections 6.3% 6.0% fill. 4.4% 4.0% 4% 3.6% 3'47. 2..4% 2. 2% 3`>< 2.0% 2.8°0 _ 1.3`� 2" -� 1 4 0 •'.� .8% 1.QE6 1.096 �- 0.65.6 0.596 .I%�1 .0.1°6 -0.2af lI 1995-96 1996-97 1997-96 1996-99 1999-2000 - 1 2 3 2 04 -05 2005-06107-0-{6u -290 F.3-3.4% -2.3% -2.5% -3. 4.2% -4.7% -5.3% 5.1% RGURE 4 The effects of the well-publicized downturn in the real estate market over the Year -to -Year Change in General past year are becoming increasingly evident in city property tax revenues. Fund Tax Receipts Collections for 2007 revealed strong revenue growth as assessments caught up (Constant Dollars) with the previous growth in the real estate market. Property tax revenues increased in 2007 by 107% compared to 2006 levels, or in constant dollars, an increase of 6.3%. Projected property tax collections for 2008, however, point to the impact of the downturn in real estate values. Property tax revenues for 2008 are projected to grow in current dollars by 1.8%. which amounts to an actual decline of 3.6% in constant -dollar terms. The projected decline in property tax revenues in 2008 is noteworthy because it represents evidence of the impact of the subprime and housing Finance problem and declining real estate values- The survey asked finance officers for information on the number of foreclosures in cities for each year from 2006 to 2008- Many cities do not have this information readily available because the information is collected by another level of government (counties, for instance) or because they have not tracked this information in the past. Forty cities responded with information for the period in Question. For these 40 cities. the number of foreclosures increased by 60% from 2006 to 2008. While the response rate makes generalizing about these results difficult, the stark increase in foreclosures in these 40 communities provides a snapshot of the difficulties facing cities on the housing front during this period. Page 51 Looking forward, it is likely that the full effects of changing housing conditions will not be felt by cities for another six to twelve months las the subprime impact on city finances began to be experienced approximately 12 months ago) and that the negative impact on property tax revenues will continue through 2009-10 as property tax assessments and revenues catch up to changes in the market. Changes in economic conditions are also evident in terms of changes in city sales tax collections. When consumer confidence is high, people spend more and city governments with sales -tax authority reap the benefits through increases in sales tax collections. For much of this decade consumer spending was also fueled by a strong real estate market that provided additional wealth to homeowners. Evidence of the struggling economy and the declining real estate market can now be seen in lower levels of consumer confidence, resulting in less consumer spending and, as a result, slower growth or decline in sales tax revenues. City sales tax receipts improved in 2007 over previous year receipts by 4.1% in current dollars or a slight decline of 0.3% in constant dollars- Projections for 2008 are for only 1.2% current -dollar growth, which represents a decline of 4.2% in constant dollars - City income tax receipts have been fairly flat, or have declined, for most of the past decade in constant dollars- Income tax revenues are driven primarily by income and wages. The lack of growth in these revenues suggests that economic recovery following the 2001 recession was, as many economists have noted, a recovery characterized by a lack of growth in jobs, salaries and wages- In current dollars. 2007 city income tax revenues increased by 1.9% (a decline of 2.5% in constant dollars). Projections for 2008 are for current dollar growth of 2.1%, or constant -dollar decline of 3.3%. City finance officers are therefore predicting a decline in all three major sources of tax revenue for cities in 2008 With national economic indicators pointing to continued struggles, the impacts of those economic conditions on local revenue sources, and the lag between declining economic conditions and local revenue impacts, all indications point to worsening city fiscal conditions in 2009 and 2010 - Factors Influencing 0t) Budgets A number of factors combine to determine the revenue performance, spending levels, and overall fiscal condition of cities. The survey presented city finance directors with a list of 18 factors that affect city budgets.' Respondents were asked whether each of the factors had increased or decreased between 2007 (regardless of fiscal -impact) and 2008 and whether the change is having a positive or negative influence on the city's overall fiscal picture. Leading the list of factors that finance officers say have increased over the previous year is prices and inflation (98%), such as enemy and fuel prices that impact the cost of delivering city services. Infrastructure (859©) and public safety (83%) are specific service needs noted as increasing. Employee -rated costs, including wages 195%1, health benefit costs (86%) and pensions (79%I also increased over the previous year - 7 The 18 factors include: infrastructure needs, public safety needs, human service needs, education needs. empfoyee wages. employee pension costs, employee health benefit costs. prices and inflation. amount of federal aid amount of state aid, federal non -environmental mandates, federal environmental mandates. state non -environmental mandates state environmental mandates. state tax and expenditure limitations, population, city lax base. and the health or the local economy Page 52 Leading factors that city finance officers report to have decreased are the health of the local economy (52%), the amount of federal aid (40%) and the amount of state aid (35%). 100% 98% 95°S 90% 85°1: 86% 83% 80% 1 ■ 1 79% ® Increased w Decreased 72% 70% 61% 60% 55% 52". 50% 40% 40% 359. 35% 29'a 3i% 30% 26% 26 °b 18 20% 19 1440 J4% 10% 7% 1 °la 2% % e °/a �� 46 5 % % % %2%0% % �ell. �e`a��oy a�e�S`oS a%eB`"o� 11 S�v`w a�`a`\QRa`d Was� bsw \���a�vQ �S- Q-®g01kv 4�a\r`coc� �ozp �as�`eNo��o � �+�o *141, \ FIGURE 5 When asked about the positive or negative impact of each factor on city finances Change in Selected Factors in 2008, nine in ten city finance officers cite prices and inflation (91%) as having a From FY 2007 negative impact. with infrastructure (78%) and public safety (78%) again leading the way in terms of service needs. Employee -related costs for wages (89%). health FIGURE_6 benefits (84l) and pensions (77%) are also freQuently cited by city finance Impact of Selected 'Factors on FY officers as negatively impacting city budgets_ Nearly six in ten (58%) report that 2008 Budgets & Ability to Meet the health of the local economy is having a negative impact on city finances. Cities' Overall Needs 100% 89% 91% 90% 84% 80% 76% 7a% 77% ■Positive Impact Negative Impact i 70% 66% 60% 68% AH 50% `8% 0 43% 40% 35% 35% 31 % 32% 30% 26% 0 27% 22 21 20 20% 17 18% 10% 4% 6% 6% 7% 5% 356 3% 1% 2°% 1% 0% Qu�s�x®�Qi\a� ee�5�a0dar4a0a�Se�y���aa��4 ����a�� Q�d �pao�460\FG�� rage 53 When city officials were asked to identify three items that are having "the most negative impact- on their agility to meet city needs, the top vote -getters are the costs of city workers' health benefits icited by 54% of city finance officers), employee wages (42%). and infrastructure (3.4%) and public safety (32%) needs. Fiscal Actions City finance officers were also asked about specific revenue and spending actions taken in 2008. The most common action taken to boost city revenues during 2008 has been to increase the levels of fees for services. Half (49%) of the responding city finance officers report that their city has taken this step. One in four cities also increased the number of fees (28%) or the level of impact and development fees (23%)_ City finance officers are eQually likely to report increases (24%) and decreases (24%) in city property tax rates_ Increases in sales tax rates (5%), income tai rates (0%), and other tax rates (8%) are less common. 49% 50% A Increased Q Decreased 45% 40% 35% 30% 28% 24% 24% a 0 25% 23% 20% 15% 10% 8% 8% 0 5% 2% - 3°r° 3°/° 3% ° 4% A ;A 0% -. . Fee Levels Property Number of Level of Other Tax Tax Base Sales Tax Number of Income Tax Tax Rate Fees Impact Fees Rate Rate Other Taxes Rate On the spending side, three in four (7395) city finance officers report increases in FeouRE 7 public safety spending in 2008, 52 percent report increases in Revenue Actions in 2008 infrastructure/capital spending, and 35 percent report increases in human service spending. Forty-two percent say that their cities' general operating spending has increased and 33 percent cite increases in spending on the municipal workforce - 7 Page 54 80% 73% 70% 60% K Oecreased ! Increased 52% 50% 42% 40% 37% 33% 35% c^.v 30% 22 21% 18° 20% ° 20%° 11 13% 10°a 5% 0% Pub. Capital/Infra Operations Workforce Human Serv. Productivity Centractirg Interlocal Seri. Lev. Education Safety FIGUIU 8 Endin Balances Expenditure Actions in 2008 One way that cities prepare for future fiscal challenges is to maintain high levels of general fund ending balances, or what are often referred to as "reserves." Ending balances are similar to states' "rainy day funds" in that they provide a financial cushion for cities, but unlike states' rainy day funds, there is typically no 'trigger' for the automatic disbursement of the reserves. Despite recent cyclical changes in economic and fiscal conditions, city ending balances have grawn in recent years. In 2007, as cities began preparing for the coming downturn, city ending balances, as a percentage of general fund expenditures, reached an historical high for the NLC survey of 28 percent. City finance officers budgeted ending balances for 2008 at just over 24 percent of general fund expenditures. Ending balances, which are transferred forward to the next fiscal year in most cases, are maintained for many reasons. For example, cities build up healthy balances in anticipation of unpredictable events such as natural disasters and economic downturns. But they are also built up deliberately, much like a personal savings account, to set aside funds for planned events such as construction of water treatment facilities or other capital projects. Bond underwriters also look at reserves as an indicator of fiscal responsibility, which can increase credit ratings and decrease the costs of city debt, thereby saving the city money. Finally, as federal aid to cities has become a small proportion of city revenues while state aid has remained stable or declined slightly, cities have become more self-reliant and as such are much more likely to set aside funds for emergency or other purposes. Page 55 Lookine to _2009-10 2008 represents a critical marker in city fiscal conditions_ The impacts of the current economic downturn are evident in city finance officers' assessments of their ability to meet fiscal needs, in projections for 2008 revenues, and in the actions taken in response to changing conditions. Since city fiscal conditions tend to lag national economic conditions, the effects of a declining real estate market that most experts think has yet to hit bottom, low levels of consumer confidence, and little growth in jobs, wages, and income will likely play out in cities well into future years_ National economic forecasts are not projecting immediate and substantial improvements in the nation's economic conditions, meaning that the nation's cities will most likely still be realizing the effects of the current downturn in 2009 and 2010. The outlook for the nation's cities in the next year includes a number of concerns_ City tax bases and collections for 2008 are declining and inflationary factors, such as energy and fuel prices, will continue to increase costs and reduce the purchasing power of city revenues. The real estate market tends to be slow to recover from downturns, meaning that a rapid rebound in property tax revenues in the future cannot be expected in the next few years. Other economic conditions - consumer spending, jobs, and income growth - are also struggling and will weigh heavily on future city revenues. Federal and state budget difficulties mean that additional aid to local governments is unlikely. Three of the factors that city finance officers report as having the largest negative impact on their ability to meet needs are employee -related costs for FIGURE 9 Ending Balances as a 'Percentage of Expenditures (General Fund) 9 Page 56 30 28.0 25 24.0 23,7 -*- Actual Ending Balance --M- Budgeted Ending Balance 21.6 24.d as m 20 18.0 18.5 18.3 19.6 19.1 19.1 4 a 15.0 15.7 16.2 16.1 .0 M 15 13.4 12`3 12.7 13.2 7.1 16.6 169 17.2 16.0 16.9 N 41.5 71.1 17.8 12.0 10.5 14.1 15.3 14.3 10 11.6 12.2 12.3 12.2 70.3 9.0 9'° 9.9 10.5 6.9 5 0 pre ryp�h ppp IqP y �ppp ,tOp� app LOp� ,LOp rypp� ��p�O �1 pp ti Lookine to _2009-10 2008 represents a critical marker in city fiscal conditions_ The impacts of the current economic downturn are evident in city finance officers' assessments of their ability to meet fiscal needs, in projections for 2008 revenues, and in the actions taken in response to changing conditions. Since city fiscal conditions tend to lag national economic conditions, the effects of a declining real estate market that most experts think has yet to hit bottom, low levels of consumer confidence, and little growth in jobs, wages, and income will likely play out in cities well into future years_ National economic forecasts are not projecting immediate and substantial improvements in the nation's economic conditions, meaning that the nation's cities will most likely still be realizing the effects of the current downturn in 2009 and 2010. The outlook for the nation's cities in the next year includes a number of concerns_ City tax bases and collections for 2008 are declining and inflationary factors, such as energy and fuel prices, will continue to increase costs and reduce the purchasing power of city revenues. The real estate market tends to be slow to recover from downturns, meaning that a rapid rebound in property tax revenues in the future cannot be expected in the next few years. Other economic conditions - consumer spending, jobs, and income growth - are also struggling and will weigh heavily on future city revenues. Federal and state budget difficulties mean that additional aid to local governments is unlikely. Three of the factors that city finance officers report as having the largest negative impact on their ability to meet needs are employee -related costs for FIGURE 9 Ending Balances as a 'Percentage of Expenditures (General Fund) 9 Page 56 health care coverage, pensions, and wages. Health care and pension costs, in particular, are increasing at a faster rate than city revenues. This reality is unlikely to change in the near future, placing added fiscal strain on city budgets_ Facing revenue and spending pressures, cities are likely to tap into ending balance levels that are at historically high levels. Public reactions to declining economic conditions often are manifested in increased resistance to government taxes and spending, often limiting the tools available to public officials to offset declining fiscal conditions. Amid these concerns, it is not surprising that four in five (79%) city finance officers forecast that their cities will be less able to meet needs in 2009 than in 2005. The economic downturn will continue to translate into reduced city revenues, while demand for services and increases in costs will continue to put pressure on the spending side of the ledger. The fiscal health of the nation's cities represents more bad news for the national economy. With state fiscal and economic conditions also struggling, the state - local sector of the economy, representing 13 percent of U.S. gross domestic product (GDP), is now in the midst of a downturn - Faced with these pressures, local, state, and federal leaders will need to work together to ensure that their responses help to stabilize the economy and do not exacerbate the difficult conditions already confronting the nation's leaders. ,about the Survey The City Fiscal Conditions Survey is a national mail survey of finance officers in U.S_ cities. Surveys were mailed to a sample of 1,055 cities, including all cities with populations greater than 50,000 and, using established sampling techniQues, to a randomly generated sample of cities with populations between 10,000 and 50,000. The survey was conducted from April to lune 200$_ The 2005 survey data are drawn from 319 responding city finance officers, for a response rate of 30.2%. The responses received allow us to generalize about all cities with populations of 10,000 or more. Throughout the report the data are compared for cities of different population sizes, regions of the country, and with different tax structures. The response rates for these categories are provided in the table below. ti Tt.Tse Yale 7V Page 57 >300,000 59 27 45.8% 100,000-299,999 179 €8 38.0% 50,000-99,999 315 99 31.4% 10,000-49,999 502 125 24.9% Northeast 222 33 14.9% Midwest 302 75 24.8% South 277 108 39.0% West 254 103 40.6% a Property f 384 95 24.7% Sales & Property 534 201 37.6% Income & Property 110 23 37.6% 7V Page 57 It should be remembered that the number and scope of governmental functions influence both revenues and expenditures. For example, many Northeastern cities are responsible not only for general government functions but also for public education. Some cities are rewired by their states to assume more social welfare responsibilities than other cities. Some assume traditional county functions. Cities also vary according to their revenue -generating authority. some states, notably Kentucky, Michigan, Ohio and Pennsylvania, allow their cities to tax earnings and income. Other cities, notably those in Colorado, Louisiana, New Mexico, and Oklahoma, depend heavily on sales tax revenues. Moreover, state laws may reQ—uire cities to account for funds in a manner that varies From state to state. Therefore, much of the statistical data presented here must also be understood within the context of cross -state variation in tax authority. Functional responsibility, and state laws. City taxing authority, functional responsibility, and accounting systems vary across the states. For more information on differences in state -local fiscal structure, see Cities and State Fiscal Structure (NLC 2008) at www.nic.org. The dollar amounts presented in this report are in either current or constant dollars_ Constant dollars are adjusted using the state and local government implicit price deflators from the National Income and Product Accounts reported by the U.S. Bureau of Economic Analysis (www.bea.gov). When we report on Fiscal data such as general fund revenues and expenditures we are referring to all responding cities' aggregated fiscal data included in the survey. As a conseQuence, it should be noted that those aggregate data are influenced by the relatively larger cities that have larger budgets and that deliver services to a preponderance of the nation's cities' residents. When asking for fiscal data, we ask city finance officers to provide information about the fiscal year for which they have most recently closed the books (and therefore have verified the final numbers), which we generally refer to as FY 2007, the year prior (FY 2006), and the budgeted (estimated) amounts for the current fiscal year (FY 2008). When we report on non -fiscal data (such as finance officers' assessment of their ability to meet fiscal needs, fiscal actions taken, or factors affecting their budgets). we are referring to percentages of responses to a particular Question on a one - response -per -city basis. Thus, the contribution of each citys response to these Questions is weighted eQually. The Lae Between Economic & City Fiscal Conditions We often refer to the lag between changes in the economic cycle and the impact on city fiscal conditions. What does this mean? The lag refers to the gap between when economic conditions change and when those conditions have an impact on city revenue collections. in fact, cities likely feel the impacts of changing economic conditions sooner_ However, because reporting of city fiscal conditions occurs, in most cases, can an annual basis, whether through annual budget reporting or NLC's annual survey, those impacts tend to not become evident until some point after the changes have started to occur. hi Page 58 National League of Cities 1301 Pennsylvania Avenue, NW Washington, DC 20004 www.nlc.org How long is the lag? The lag is typically anywhere from eighteen months to two years and it's related in large part to the lag in property tax collections. Because property tax bills usually refer to the value of the property in the previous year, a downturn in real estate prices may not be noticed until one to two years after the downturn began_ Moreover, property tax assessment practices are not uniform and are also not annual. Consequently, property tax collections, as reflected in property tax assessments, lag economic changes (both positive and negative) by some period of time_ Figure 2 (pg. 3), which shows year-to-year change in city general fund revenues and expenditures, also includes markers for the official U.S. recessions that occurred in 1991, with a low point, or "trough" in March 1991, and 2001, with a trough of November 2001 according to the National Bureau of Economic Research (NBER). Comparing the dates of the recessions to the low point of city revenue and expenditures as reported in NLC's annual survey (typically conducted between March and lune of every year), we see that the low point for city revenues and expenditures after the 1991 recession occurred in 1993, approximately two years after the trough of the U.S. economic recession (March 1991 to March 1993). After the 2001 recession, the low point for city revenues and expenditures occurred in 2003, approximately eighteen months after the trough of the U.S_ economic recession (November 2001 -April 2003). Our reporting on this lag is dependent upon when the annual NLC survey is conducted. meaning that there is some degree of error in the length of the lag - for instance, had the survey been conducted in November of 1992, rather than April of 1993, we might have picked the effects of changing economic conditions earlier. Nevertheless, our point, that the evidence of the effects of changing economic conditions tend to take 18-24 months to become evident, is borne out by the available data. Page 59 Suburban Rate Authority (SRA) Street Lighting Review Executive Summary SRA municipalities all face decisions regarding their street lighting systems. Many of their systems are approaching 25 -year replacement and other city projects, such as road re -construction, will require changes in street lighting. In the past, the only options for cities were city -owned or utility provided street lights. Today multiple, alternative lighting providers are in business, anxious to enter the regional municipal market. Several_ new lighting technologies are emerging and merit consideration for improved quality of light, decreased frequency of outages and energy efficiency. Information management tools are now more readily available to help lower maintenance costs and speed lamp -out replacements. To help city management consider its options for street lighting replacements, this report provides some guidance for the decision process. It includes some background information, a decision template, questions to ask internally and questions to ask of potential providers. Many of the issues and questions are the same whether the city is replacing an existing or installing a new street lighting system. Here are several separate, but related, questions that city management might consider: I . Even if the city is generally satisfied with the service and cost provided by Xcel Energy, what are some strategies that the city might follow to improve service from Xcel and lower costs to the city? How might the cities leverage their collective clout to get some changes since the services are under Minnesota Public Utilities Commission (PUC) purview? See Chapter 3, Appendix C. 2. If the city is not satisfied with Xcel, what options does the city want to consider, such as owning and maintaining a city --owned street lighting system or contracting street lighting services from an alternative provider? How should the city go about evaluating the different options and providers? See Chapter 3 and Appendices D and E. 3. What about new lighting technologies - LED, induction, plasma - and information management systems - asset management, outage response systems and preventive maintenance programs? Are any worthwhile? Can the city benefit through lower costs (energy efficiency, less maintenance and Xcel lighting rebates) or through improved service (quality of (fight and reducing lamp - out times)? See Chapters 2 and 4. This report will help guide a city through the issues that the above questions raise but each city must evaluate the options based on their own values and specific needs. To help illustrate the process, an example decision for a 29 -light system replacement is shown in Chapter 5 and Appendix F. The report is organized as follows: Chapter 1 Introduction I Appendix A 2008 SRA Member Cities 2 This report was prepared by HPC, LLC for the Suburban hate Authority HPC, LLC: 952-567-7472 /www.hpe-Ilc.corn Suburban Rate Authority: 612-337-9233 Chapter 2 Emerging Technologies and Issues Appendix S Consultant Qualifications Chapter 3 Street Lighting Service Providers Appendix C Xcel Energy Recommendations Regarding Chapter 4 Grants and Rebates Appendix D List of Street Lighting Providers Chapter 5 Decision Making Tool Appendix E References for Alternative Street Lighting Providers Chapter 6 Key Findings and Recommendations Appendix F Decision Making Tool Worksheets Appendix G General Findings This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-Ile.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Table of Contents Chapter 1 Introduction 4 Chapter 2 Emerging Technologies and Issues 6 Chapter 3 Street Lighting Service Providers 8 Chapter 4 Grants and Rebates. 9 Chapter 5 Decision Making Tool 10 Chapter 6 Key Findings and Recommendations 14 Appendix A 2008 SRA Member Cities 15 Appendix B Consultant Qualifications 16 Appendix C Recommendations Regarding Xcel Energy 17 Appendix D List of Street Lighting Providers 22 Appendix E References for Alternative Street Lighting Providers 35 Appendix F Decision Making Tool Worksheets . 53 Appendix G General Findings 58 4 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721www.hpc-llc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Chapter 1 - Introduction HPC prepared this report for the Suburban Rate Authority (SRA). The Suburban Rate Authority is a municipal joint powers organization formed under Minnesota Statutes, Section 471.59. It consists of 31 Twin Cities suburban cities (Appendix A is the current member list). The SRA is chartered to participate in matters relating to electricity, gas, telecommunications, and water and sewer utilities. The SRA was formed in 1963 as a regulatory body and was reconstituted in 1975 when the Legislature formed the Public Utilities Commission as the state regulator of rates and services for investor-owned electricity, gas and telephone companies. HPC provides management services and consulting for energy-related initiatives, ventures and companies and has extensive experience in energy and utilities. Stephen Caskey was the lead consultant on this engagement with additional consulting support provided by Elsie Martin. (Appendix B contains consultant backgrounds and qualifications). Engagement HPC was retained by the SRA to review street lighting options, technologies and issues due to concerns with the offerings, performance and commitment of the incumbent provider for most SRA cities, Xcel Energy. This review included an assessment of specific issues and concerns that most of the member cities had with Xcel Energy. The resulting report provides information and tools that each member of the SRA can use for future street lighting decisions. Current Situation The subject of this report is municipal street lighting equipment and services. Street lighting equipment and services have been deregulated by the PUC since 1992. In Xcel's service territory, however, the provision of street lighting equipment and services are tariffed setting forth charges based on lighting technology and whether the city owns its own equipment or leases equipment from Xcel. Cities may own and maintain their own street lighting facilities or retain Xcel or other third -party providers to maintain that equipment. The extent of legal commitment a city has with Xcel or other provider for equipment lease or maintenance services is a matter for each city to review on a case-by-case basis. Process HPC consultants conducted extensive interviews in order to understand the issues, the opportunities and the complexities involved in decision making around street lighting. The interview process included multiple interviews of • representatives of various SRA member cities, • representatives of Xcel Energy, • multiple alternative street lighting service providers and their references, and 5 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.lipe-lic.com Suburban Rate Authority: 612-337-9233 a several manufacturers of street lighting technologies. HPC also conducted a review and analysis of lighting technologies and related research. Through this process, but especially from the discussions with SRA members, HPC was able to develop a set of decision objectives important to street lighting decisions. These objectives are shown here below and in Chapter 5. This set of criteria provides a guide for future decision making and is the foundation for the Decision Making Tool described in Chapter 5. Suburban Rate Authority (SRA) Importance Criteria for evaluating Street Lighting Options Maximize Customer Service Minimize Health & Safety Comply wl Minimize Maximize Minimize Maximize Maximize Life -cycle of City Laws & Lamp -out Security of Environmental Aesthetics of Stakeholder Costs employees & Regulations Time Public Impacts Fixtures Relations contractors HPC identified and validated the availability of a number of street lighting service providers as viable alternatives to the incumbent provider. Similarly, HPC identified several lamp technologies that are now feasible options to the currently predominate high pressure sodium lamps. The following chapters lay out these options and provide a framework for assessing them. 2 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7972 / www.lipe-lie.com Suburban Rate Authority. 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Chapter 2 -- Emerging Technologies and Issues Municipal street lighting is beginning to be influenced by technological change driven by cost, service quality and environmental issues. For so long, low cost off-peak energy to run street lighting did not make this an area for innovation. Small incremental changes in lamps and fixtures were sufficient to satisfy customers. As cities' budgets have gotten tighter and energy efficiency has become one strategy to save money, more attention is being paid to street lighting. Besides more efficient lamps, vendors are offering a variety of automation technologies to improve the overall cost of operating and maintaining street lighting systems and to provide better overall quality of service. Lamps The table below compares the currently predominate lamp for street lighting, high pressure sodium, to a variety of new or emerging lighting technologies. The common characteristics of the alternative technologies are that they provide "white light" for better visibility, lower energy consumption for comparable lighting, and less hazardous waste (mercury) generation. A couple of the newer technologies, Induction and LED, also promise considerably longer lamp life that significantly reduces life cycle costs although they have not been on the market long enough to verify the expectations. Ceramic metal halide and induction lighting are commercially available and cost competitive today although they are not available in as many fixtures as HP Sodium. LED and plasma lamps are available but are still considered emerging technologies where significant development will need to. take place to make them reliable and cost competitive alternatives. IES (Illuminating Engineering Society of North America - www.iesna.ora) sets lighting standards that impact how lighting applications are designed. Changes in IES standards will need to be made to get the full energy efficiency benefits through lower lamp sizes or fewer lamps per mile. Automation Recognizing that street lights represent a significant investment in assets that are scattered geographically, vendors are beginning to offer information management tools as well as automation technologies, such as wireless communications systems, for managing these types of assets. These coupled with geographic information systems generally installed by cities can provide better information and control of street lighting to reduce energy consumption, provide more timely lamp and fixture replacements, and provide faster emergency response. A non utility street lighting provider, Reluminate, offers a software tool that records the various street lighting assets by location and enables the customer to send directly to them the location of a lamp outage for them to replace. They are also looking to provide wireless mesh communications systems for monitoring and control of the street lighting system. Utility street lighting providers generally include street lighting into their outage management systems but generally not into their GIS systems. 7 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-11c.com Suburban Rate Authority: 612-337-4233 Solar As street lighting becomes more efficient, the viability of powering it by photovoltaic sources increases since the amount of energy storage needed would be substantially less. This may not eliminate the need for a utility supply but may be able to significantly reduce the amount of energy purchased from the utility. Vendors are developing small scale solar systems for commercial applications. Environmental Issues For lighting quality and energy efficiency, it is expected that high pressure sodium lamps will eventually be phased out of the market place just like concerns about hazardous waste generation and energy efficiency are causing mercury vapor lamps and incandescent bulbs to be phased out in the near future. Cities need to be aware of legislation that may make the majority of their existing street lights obsolete. Movement away from high pressure sodium may be a good strategy for cities as they replace older systems. Light pollution is not a new issue but one that continues to be present. Some cities may already have "dark sky" ordinances requiring fixtures to minimize the amount of light directed skyward. States may take actions to establish standards for such ordinances. There will continue to be pressure to make outdoor lighting more task -oriented to minimize unnecessary lighting of the outdoors. Comparison of New and Emerging Lighting Technologies HP Ceramic Metal Induction LED Plasma Sodium Halide Commercial current Emerging Developing Availability std now n°'^' 2-5 yrs 5-7 yrs Power Usage (watt) 118 85 55 78 49 (est*) Efficiency 60 106 63.6 57.5 120 lumens/watt Energy Savings (%)vs HPS 0 28 53 34 58 (est*) Lamp Life (hours) 30,000 24,000 60,000 100,000 30,000 Color Rendition CRI 21 70 80+ 90+ 95 S/P Ratio 0.57 1.57 1.62 1.9 2 Mercury (milligrams) 11-13 1.2-2.4 5.4-7.3 0 some Lamp Cost versus HPS Ix 2x 3-5x 6-8x Sources: Lighting Research Center, Rensselaer Polytechnic Institute, January, 2008 City of Oakiand Study, January, 2008 N This reportwas prepared by HPC, GLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / mmbpe-11c.com Suburban Rate Authority: 612-337-9233 Philips Lighting, August, 2008 (HPS, ceramic metal halide and induction technologies) AITI Corporation, August, 2008 (induction lighting technology) Luxim Corporation, August, 2008 (plasma lighting technology) CRI: A measure of how well the artificial light will render color, on a scale of 1- 100 with 100 being perfect color rendering S/P Ratio: ratio of scotopic lumens (what the eyes see) to photopic lumens (what is traditionally measured by a light meter), the higher the number the better the night visibility * extrapolated data from a 180 watt lamp comparison ** manufacturer claims cost effective for applications requiring 10,000 lumens or greater 9 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.l►pc-Ilc.conz Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Chapter 3 - Street Lighting Service Providers Historically, street lighting was a monopoly service provided by electric utilities. This service was one of the first applications for electricity when.the electric utility business began. Street lighting is still dominated by electric utilities nationally and within the Twin Cities metropolitan area. It is one of the few end uses of electricity still marketed and sold directly by utilities. For the purpose of this report, street lighting services encompass design, installation, maintenance, and repair of street light systems. Xcel Energy Xcel Energy, the incumbent utility provider of street lighting services to most of the SRA member cities, expects to continue in the street lighting services business. The majority of their street lighting services are sold under various tariffs regulated by the PUC. Over the last 5 years or so, Xcel has begun to limit the number of fixture and lamp options they provide in an effort to lower cost. SRA members have perceived a decline in service response and performance and have questioned Xcel's long term commitment to the street lighting business. Appendix C contains a summary of HPC's discussion with Xcel related to services, tariffs and policies. Even if they begin today to move to other providers, SRA cities will continue for some time to come to have street lighting provided by Xcel Energy. And, there are sound reasons why some cities may desire to continue indefinitely to purchase their street lighting from Xcel. However, the cities need to work with Xcel to bring about improvements in communications and quality of service. Specific recommendations for SRA consideration are contained in Appendix C. Alternative Providers Over the years, competitive options for providing street lighting services have become available. These alternative providers perform some or ail of the services required. The competitors to incumbent utilities fall into the following categories: 1. Other utilities expanding beyond their existing service territories 2. Commercial lighting companies expanding into municipal lighting 3. Dedicated municipal lighting companies 4. Cities who manage their own street lighting expanding beyond their city limits 5. Electrical contractors that have experience with various providers Appendix D contains a listing of the alternative providers that were contacted as part of this process and information obtained during the discussions with them. Appendix E contains follow up conversations with references provided by some of the providers. i[7 This report was prepared by FTPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/wwmhpc-11c.com Suburban Rate Authority: 612-337-4233 This list is not meant to be complete but is a representative sample of alternative street lighting service providers and their capabilities. It is meant to demonstrate that competitive options are available to SRA member cities if they desire to change providers. This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, ULC: 952-567-74721 www.lipe-Ile.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Chapter 4 - Grants and Rebates Deploying new technologies will require the cities to make some additional upfront investment. To improve the payback, cities can take advantage of a variety of programs to lower the upfront costs or to reduce financing costs. Some examples of programs cities can consider are listed below. Rebates Xcel Energy is looking into providing lighting rebates for high efficiency street lighting, such as induction lighting and LED, as they do for indoor lighting. This program is currently under consideration and will likely take months to develop and obtain regulatory approvals. It is not a given that these rebates will be available to cities who continue to receive their street lighting services from Xcel. In the interim, cities may be able to take advantage of Xcel's custom energy efficiency program. Xcel offers rebates of up to $200/kW saved. These rebates need to be applied for prior to procurement and installation of equipment. This program is applicable where cities are doing major projects involving. hundreds of lamps to make it worth the time to do the paperwork. The PUC is setting increasingly higher conservation goals for Xcel. The Conservation Improvement Program (CIP) will need to be significantly expanded to meet these goals. There is an opportunity to propose programs around reducing energy demand for street lighting that can provide funds to reduce the cities' cost for newer, more efficient systems. Grants The cities individually or through the SRA may want to pursue funding for major trial systems deploying more efficient street lighting technologies by way of Xcel's renewable development fund (RDF). More efficient lighting technologies coupled with photovoltaics may be an attractive proposal for RDF funding. Loans Lighting manufacturer AITI indicates they can provide very low cost loans (3%) to purchase their induction lighting. Their product is qualified under the Clinton Climate Initiative which allows them to tap into this low cost financing made available by 5 major banks. Revenue It is expected that carbon emissions will become a tradable commodity. Cities may be able to obtain carbon credits for reducing energy consumption from street lighting. These credits could be another source of funding for installing more efficient street lighting technologies in the future. If cities are already a part of the Chicago Climate Exchange or other such organizations, they have the ability now to create a new revenue stream for reducing energy consumption. 12 This report was prepared by HPC, LLC for the Suburban Rate Authority [-IPC, LLC: 952-567-7472 / www.hpc-lic.eom Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Chapter 5 - Decision Making Tool This section and the accompanying worksheets in Appendix F are a guide, or decision making tool, to help cities breakdown and consider the many complex issues that are involved in making a decision about street lighting. This tool will help cities ask and answer the pertinent questions needed to make a complete and informed decision regarding replacement of an existing street lighting system or installation of a new street lighting system. The cities will likely have additional issues they will want to consider but this tool and these questions are meant as a starting point for discussion. All these worksheets and guides follow the logic of multi -objective decision analysis, a methodology based in the science of operations research. Operations research is the discipline of applying advanced analytical methods to help make better decisions. Here are the steps to help breakdown a complex decision into manageable pieces: 1. Frame the problem What is in scope, what is out of scope? This project's scope was defined to include a review of street lighting options for cities in the SRA. It was not to include a review of other municipal services such as traffic lights, or street maintenance. Nor was it to include indoor lighting. Defining what is in scope helps to bound a large, intractable problem by taking out some details and eliminating over -arching assumptions that are not negotiable. For example, the breadth of city services was not a debatable subject; cities could not decide to eliminate street lighting service. 2. Structure objectives What are the SRA cities' objectives for Street Lighting? What do cities want and value from Street Lighting? identify objectives by determining what is important to the city and its constituents. The scope of the project and time constraints among city public works managers did not allow members of the SRA to be directly involved in the development of the value criteria listed below in Table 1 "Objectives". The criteria were derived from HPC consultants' conversations with SRA members and their understanding of street lighting. The criteria should be used as a starting point for each city as they talk about what is most important when evaluating Street Lighting options. This step is critically important! Take time to talk about what is fundamentally important within the scope of the decision BEFORE generating a list of options or ideas for what can be done. Decision makers often jump directly to figuring out what to do without clearly articulating what is wanted and needed. Each city has a unique set of values and its leadership should debate and clarify those Values. Keep in mind that some of 13 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.lipe-Ile.com Suburban Rate Authority: 612-337-9233 these wants and objectives will be in conflict, for example minimizing costs and maximizing aesthetics. That conflict is appropriate and will be incorporated into the review in a later step. Table 1 "Objectives" Suburban Rate Authority (SRA) Importance Criteria for evaluating Street Lighting Options Minimize I I Health & Safety Comply wI Life -cycle of City Laws & Costs employees & Regulations contractors Design & Installation costs (inct fixture cost) Maintenance costs (Inc[ warranty of fixtures► Energy costs Disposal costs Recovery of costs from knock -downs Admin work for Cities Is this one needed? Are there crew safety issues that would he relevant when Comparing street tlghling options from Xcel vs. cily-owned vg from alternative pravKlers? Key Prracfpres to, Objecfis Niemrrhy • Comprehensfve • Fundarrrenfat (ends nor means) Retevanf • Nonaeduwdant. no overtop • Measurable • Independent F4infmatin number NOTE Boxes are NOT equally important City County State Federal Maximize Customer Service Minimize Maximize Minimize Maximize Maximize Lamp -out Security of Environmental Aesthetics of Stakeholder Time Public I Impacts Fixtures Relations Preventive maintenance Lamp life Lumen depreciation Frequency of knock -downs Trouble response time Accuracy of maps Availability of crews & equipment September 5. 2008 Roadway safety citizen personal security Quality of light: Color rendition {CRI] & &P ratio • Dispersion of light # & Location of poles 3. Define performance measures Construct measurable scales for the objectives. Energy efficiency: powerusage (watts) & lumens I watt 'Dark sky' light pollution Hazardous waste (e.g.. mercury in lamps} Choices or with City Council Fixtures with Residents Look of with St Lighting fixtures providers with City employees This step may be abbreviated, especially if there is a general understanding of what is meant by each objective. The financial objective, however, must include appropriate measures of life -cycle costs. 4. Assess importance weights What decision criteria (objectives) are very important (HIGH), somewhat important (MED) and not very important (LOW)? This step incorporates the conflicts between objectives into the review. Evaluate the relative importance of the various objectives shown in Table 1 "Objectives". Rank the criteria. Ranking will often be different for each city. For example, how important is speed of responding compared with aesthetics of lamp fixtures? For some cities, 14 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpallc.com Suburban Rate Authority: 612-337-9233 aesthetics is very important; for other cities, the look of a fixture is less important. What tradeoffs must be made? In the example replacement decision shown in the worksheets of Appendix F, the rankings are as follows: HIGH 1) Minimize Life -cycle costs 2) Minimize Lamp -out Time MED 3) Maximize Security of Public 4) Maximize Aesthetics of fixtures 5) Minimize Environmental Impacts LOW 6) Comply with Laws & Regulations 7) Maximize Stakeholder Relations 3. Build alternatives What are street lighting options? In this step, decision participants should list decisions and brainstorm different alternatives for each of the individual decisions. The "Decisions" worksheet in Appendix F provides an example list of decisions (row 7) and their accompanying decision alternatives (rows 10 through 22 under columns B through J). Each city should look at these categories and add to or subtract from them. Add columns if there are more decisions, fill in more alternatives down the columns. Do not worry about feasibility of the alternatives in this brainstorming step. The purpose is to generate lots of ideas. Next, pick some strategies (or groups of decisions) that the city would like to evaluate. Build a strategy set by choosing possible alternatives in each column. In this manner, do consider feasibility and only chose those alternatives that "make sense" and merit further review and analysis. An example set of five strategies for a 29 -light system replacement is framed with a box in the "Strategies" worksheet. The strategies are named and numbered: Replace02_Xcel_prepay Replace03Xcellease Replace04InfraS Replace05_Relum Replace06_Sig&WH Resp 6. Evaluate alternatives How do the different alternatives compare? Assess the risks and benefits. 15 This report was prepared by HPC, LLC for the Suburban. Rate Authority HPC, LLC: 952-567-7472/www.hpc-11c.com Suburbau Rate Authority: 612-337-9233 Compare individual strategies within the group by going through the checklist in the "Issues & Questions" worksheet. Answer questions, fill in available data. Evaluate the pluses and minuses of the different options - of staying with Xcel, of managing a city -owned system, of choosing an alternative provider with preventive maintenance. The questions and answers for the 29 -light system replacement example, shown in the "issues & Questions" worksheet, are hypothetical to help illustrate the process. Spend the most time with questions around the objectives that are most important to the city. 7. Pert it all together Finally, step back from the details. Are you ready to make a decision? Have you talked about what is most important? Have you researched your concerns? Does it "feel" right? Do you need to do more research or cost analysis? 16 This report was prepared by HPC, LLC for the Suburban ]tate Authority HPC, LLC: 952-567-7472 / wi,ii,w.hpc-llc.coni Suburban Rate Authority 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Chapter 6 - Key Findings and Recommendations Key Findings Cities that have relied on Xcel for the bulk of their street lighting are generally unfamiliar with the life -cycle costs as well as the technological and political issues that are emerging around this service. In addition, street lighting' decisions will only become more complex as cities balance tradeoffs - such as reducing installation costs, lowering energy costs, shortening response times, improving light quality, minimizing hazardous waste, and improving fixture aesthetics. Changes in lighting technologies add an even greater complexity to these decisions. Xcel will likely continue to offer street lighting services. Those services, however, may only include a limited range of options and services. Absent action by the Cities, Xcel's performance will likely stay the same or even decline. Alternative street lighting providers are available in the Twin Cities' market as an option to Xcel or city -owned systems. Some new lighting and information technologies are commercially available today; others are in developmental stages. These technologies can provide better overall cost and performance of street lighting systems. The current lighting choice - high pressure sodium -will become obsolete in the not too distant future due to cost competition and environmental concerns. The newer lighting technologies provide "white light" - which has better light quality, more energy efficiency and lower mercury content than high pressure sodium. (A detailed listing of general findings is available in Appendix G) Recommendations 1. At a minimum, cities need to become more involved in street lighting management. They cannot rely on Xcel to "do it all" and expect good service and multiple lighting options unless they engage in active dialogue with Xcel. 2. Cities need to start planning now for lighting systems requiring replacement in the next couple years. This report provides some information and tools to help with that planning process. 3. Leveraging the collective efforts of the cities with Xcel and the PUC can bring about improvements from Xcel. The opportunity for joint action is part of the advantage that SRA cities have over other individual municipalities. 4. If cities want to deploy new technologies or to have a broader range of lighting fixtures, they may need to partner with alternative street lighting providers or own the systems themselves. Even with joint action, the cities may not be able to make big changes at Xcel. Xcel's core business is not street lighting and it is unlikely that the company will be out in front offering new technologies unless if puts a renewed focus on this business. 5. In order to make an orderly transition away from soon-to--be-obsolete high pressure sodium, cities need to begin transitioning to newer lighting technologies. 17 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpe-11e.com Suburban Rate Authority: 612-337-9233 Induction and ceramic metal halide lamps should be seriously considered in the near term. Cities need to stay aware of changing legislation that might impact outdoor lighting. SO This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 wwiv.hpc-Elc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Appendix A - 2008 SRA MEMBER CITIES Bloomington Maple Grove Brooklyn Park Maple Plain Burnsville Maplewood Chanhassen Minnetonka Circle Pines Mound Columbia Heights Oakdale Deephaven Orono Eden Prairie Plymouth Edina Robbinsdale Fridley Roseville Golden Valley Shakopee Hastings Shoreview Hopkins Spring Lake Park Lauderdale Spring Park Long Lake Wayzata Woodbury a This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / wwtiv.hpc-IIc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Appendix B - Consultant Qualifications Stephen Caskey, vice president/general partner of HPC, LLC, has assisted a variety of clients in areas of utility operations, contracting and renewable energy development since HPC was formed in 2003. He was a 30 year utility veteran with NSP and Xcel Energy with a background in electric supply, electric transmission, and gas and electric distribution. The last position held at the utility was as managing director of business strategy For Xcel's Energy Delivery Unit. He holds a BS in Electrical Engineering from the University of Minnesota and is a graduate of the Minnesota Management Institute at the Carlson School of Management. (More background is available on www.hpc- Ilc.com) Elsie Martin, president, Myers Martin Consulting, LLC has collaborated with HPC on a number of engagements. She assists organizations in priority setting and decision analysis to solve strategic challenges. She has over 25 years of experience working as an internal consultant at a large, investor-owned electric and gas utility (NSP and Xcel Energy). She holds a BA in Mathematics from Carleton College, a MAT from Northwestern University and a MS in Operations Research and Systems Analysis from the University of North Carolina. (More background is available on www.myersmartinconsulting.com) 20 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.bpc-IIc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Appendix C - Recommendations regarding Xcel Energy The following recommendations could benefit all members of the SRA and pursuing them as a group may have some advantages. Recommendations: 1. Request improved accountability for street lighting performance. 2. Request improved communications and monitoring related to the ongoing preventive maintenance program. 3. Request city specific service metrics. 4. Request improvement to street lighting outage reporting processes and systems (phone and web) to better direct outage reporting to Xcel. 5. Request, at a minimum, annual reporting to each city on performance and status of lighting systems. 6. Request funding to assess and pilot emerging lighting technologies to enable more rapid deployment of new technologies, especially more energy efficient technologies. 7. Request a change in policy such that "Group V" system ownership reverts back to the city after 25 years. 8. Request that street lighting rebates be developed so that all cities can benefit from them, whether or not Xcel provides the lighting service. 1. Accountability Xcel's Community Relations organization is generally the cities key contact with Xcel. It act as Xcel's "sales" organization for the municipal market. Its level of involvement with selling street lighting services can vary depending upon the particular community service representative. Much of the selling and account servicing of street lighting falls on the Xcel's street lighting operating department. This can create disconnects and lack of clear accountability for performance. The SRA members should consider requiring Xcel to provide annual performance reports to the cities based on establishing agreed to performance standards. The SRA members should consider negotiating with Xcel the establishment of penalties if performance standards are not met. If Xcel is unwilling to provide this, the SRA can request that the PUC establish such standards, reporting and penalties. Suggested measures are, • Number of hours to get lighting back in service • Number of outages per 100 lamps • Percentage of planned lamp, pole and circuit replacements achieved (preventive maintenance program) • Time to resolve complaints 21 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-11c-com Suburban Rate Authority: 612-337-9233 2. Preventive Maintenance The cities perceive that Xcei tends to operate in a reactive mode rather than proactively doing lamp replacements. If Xcel is doing any preventive maintenance, it is generally unknown to the cities. The SRA members should consider working with Xcel to improve communications relative to preventive maintenance programs, develop an agreed upon preventive maintenance objective and method of monitoring. 3. Performance Measures The cities do not know how well Xcel street lighting department is performing within their communities. This makes it difficult to reconcile between citizen complaints and Xcel's position on issues of service quality. The SRA members should consider requesting that Xcel report quarterly service quality performance by city. These measures should _be consistent with any agreed to performance standards discussed earlier. 4. Outage Reporting Cities do not like to field street light outage calls when they have no responsibility for responding. Xcei has not made it easy for the cities in this regard and, therefore, the process can delay getting the street lights back in service. The SRA should consider working with Xcel to develop street light outage reporting systems and processes that can improve the outage reporting process and minimize the cities' involvement while also improving performance. Improvements are needed especially where extra steps in phone answering and relaying of outage reports only cause delays. Features to consider are, ® A dedicated Xcel phone number for street light outages clearly communicated to residents ® City phone systems set up to automatically direct outage tails to the dedicated Xcei phone number ® Improvements in the web -based reporting system established by Xcel so cities can establish links to it on their web sites ® Systems set up to properly direct outage reports between the city and Xcel to get them directed to the party with the responsibility S. Annual Reporting The cities get little regular information on the status and performance of the street lighting systems within their communities that are managed by Xcel. As lighting systems age, there will be an increasing need to make decisions on replacements. Currently, the cities are generally caught by surprise when Xcel recommends that a replacement needs to be done soon. They are not prepared to make replacement decisions nor have they properly budgeted for them. 22 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/�viiiv.iipe-lic.com Suburban Rate Authority: 612-337-9233 The SRA should consider requiring that at least annually Xcel provide a report that summarizes system performance, adherence to the preventive maintenance program and upcoming needs for specific system replacement. 6. Emerging Technologies As energy costs rise and communities pursue strategies to reduce their environmental impacts, cities are looking at opportunities to deploy new technologies for street lighting and want their street lighting providers to be diligently exploring new technologies. The SRA should work to get Xcel's commitment to invest in assessing and piloting new street lighting technologies, especially those that are more efficient. Xcel needs to increase spending on conservation programs. SRA may want to pursue funds for research and piloting from Xcel's Conservation Improvement Program (CIP) to push along the implementation of new technologies. 7. Policy Changes The current Xcel policy regarding "Group W installations results in the cities losing control of the asset even though they have paid for it up front and are obligated to pay for replacement when Xcel requests it. The SRA should work with Xcel to develop changes to the "Group V" tariff that at a minimum provide an option of having the assets revert back to the cities after the 25 years (the contract term). 8. Rebates Xcel has begun the process to develop lighting rebates for street lighting as part of their Conservation Improvement Program (CIP). These programs require regulatory approvals. It is not clear whether access to the program will be available to Xcel's street lighting customers since they are not directly purchasing the lamps. In other words, can Xcel's street lighting business, which supplies a large percentage of the street lighting systems in their service territory, offer the rebates to its customers? Lack of access to those rebates would put Xcel's street lighting business at a cost disadvantage. The SRA should support a means by which cities who continue to use Xcel's as their street lighting provider can access the same lighting rebates as those who use alternative providers. 23 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpe-llc.eom Suburban Rate Authority: 612-337-9233 Meeting on Xcel Street Lighting Services and Tariffs June 10, 2005 Attendees: Steve Caskey (HPC), Steve Huso (Xcel), Bob Schommer (Xcel) Xcel stresses that cities need to be sure to look at the lite -cycle costs (installation, maintenance and replacement over systems life time). Besides lamp replacement, maintenance includes dealing with locating, knockdowns and underground issues of replacement and repair. Xcel believes some cities don't want to be in the street lighting business. Others have been but now don't know what to do about their system. Xcel knows it cannot provide a lowest cost design/installation (first cost) but believes it offers a competitive life -cycle cost and a certain amount of convenience to its customers. Its business model is to • Provide a limited set of lighting fixtures and lamps that meet the majority of the needs • This limited set of options enables volume purchasing to provide very cost competitive maintenance services • Do not participate in RFP's since they are driven by lowest first cost decisions (it knows they are not competitive so why spend the time bidding) • Where a city wants to work with them directly, it will provide services, some of them regulated. • Balance the number of offerings with the cost to maintain. Too many fixture and lamp options increase the amount of component inventory and make it harder to perform maintenance since field techs may not be familiar with all of the variations. • Provides responsive lamp replacement service, Damp replacements within 72 hrs (pe(formance has improved from S1%within 72 hrs in '06 to 85% within 72 hrs in '07 to 8517o of the service calls within 24 hrs) Eighteen Xcel employees are dedicated to street lighting in the metro area plus the use contractors. The field workers are dispersed at service centers throughout the metro area. It operates a call center and administrative office is in St Paul. Xcel believes LED technology is not be ready for prime time. Some manufacturers have gone out of business and GE and Philips have advised that it isn't quite there yet. Heat dissipation is the problem that needs to be solved. Xcel is planning to partner with Brooklyn Park on an LED trial this year to test the current technology and get community reaction. The very white light will be quite a bit different than HP sodium which residents may or may not like. LED technology can put out a more focused light which may be beneficial for addressing dispersion issues and "dark sky" requirements. The upfront cost is high but they are forecast to last 20 years and use substantially less energy. Deploying this technology will require Xcel to redo some of its tariffs. 24 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpc-11c.coi1n Suburban Rate Authority: 612-337-9233 The main street lighting tariffs are summarized below: Tariffs - Leased system Xcel designs, installs and maintains as long as a city desires for the flat monthly fee per fixture/lamp. This is a regulated service with pricing based on embedded costs. Xcel will replace as needed at no additional cost to the city except as the replacement costs push up the overall embedded cost over time. This can be a perpetual service. The city has to initiate any change, a replace to a different fixture or removal. Xcel believes that a city is locked in for about 5-10 years after an initial installation or full replacement of a lighting circuit so it can reasonably recover their costs Tariff - Prepaid (Group V) Xcel or another entity designs and installs a system to Xcel standards and using Xcel standard components. The city pays for it upfront. Xcel does the maintenance and is responsible for notifying the city when replacement is necessary. At time of replacement, the city has a decision point. If city wants to proceed without Xcel, Xcel has the responsibility for removal of the existing system. Tariff A32 This tariff is used where Xcel provides maintenance on a non-regulated basis for a city owned system that meets Xcel's standards. This tariff is just for the energy for non - metered systems. For all non -metered tariffs, an energy consumption value is calculated for the purpose of applying fuel adjustment clauses and other riders. Xcel does not provide a flat rate, non -metered energy service for systems on which they do not perform maintenance. They have no way of monitoring changes to the system, such as added fixtures or relamping, and therefore -lack the ability to reasonably estimate energy charges. By internal policy, Xcel does not sell its assets. It is protecting its rate base as well as its limiting liability for problems on systems they may sell. It's not clear if Xcel would seriously entertain selling these assets. Xcel operates under the National Electric Safety code while the cities and others operate under the Nationa[ Electric Code. This can create differences in how a system is built such that cities might have additional costs in addition to the metering requirements if they took over one of the utility -built systems. Xcel technically cannot do maintenance on systems built by others that fall under the National Electric Code since these require licensed electricians to work on aspects of them. Xcel would have to hire that out since their field workers are not licensed electricians. 25 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 452-567-7472 / www.hpc-1111c.coin Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Appendix D e List of Street Lighting Providers Name Contact. Strengths Weaknesses Serving Utility Xcel Energy Bob Schommer, One-stop Standard fixtures interest in doing Street Lighting shopping, low only, complaints maintenance work manager, 651-229- cost?, will handle of poor service 2402 everything for city, response times, no Pat Cline, able to finance preventive Wright Hennepin Community One-stop maintenance Response Relations, 612-337- shopping, wide located, limited 2102 variety of fixture experience Adjacent Utilities looking to expand Connexus Lee Offerman, 763- One-stop Not as centrally interest in doing 323-2711 shopping, wide located, limited maintenance work variety of fixture experience options, able to outside their finance/lease service territory Wright Hennepin Phil Glawe, 763-477- One-stop Not as centrally Response 3096 shopping, wide located, limited variety of fixture experience options, able to outside their finance/lease service territory Regional Cities looking to expand City of Saint Paul has Paul St Martin, 651- Pxtensive Only an option for interest in doing 266-6118 experience communities maintenance work response time, adjacent to St Uses info mgmt sys, Paul Regional companies in. commercial lighting looking to expand into municipal lighting Reluminate Joe Brady, 612-378- Track record of No experience 1677 good outage with response time, municipalities, Uses info mgmt sys, doesn't offer Interested in trying financing/leases new technologies at this time a This report was prepared by HPC, LLC For the Suburban Rate Authority HPC, LLC: 992-567-7472/ww-*v.hpc-lic.com Suburban Rate Authority: 6I2-337-9233 Rtanional municinal liahtina comoanv Signature Lighting John Olson, 763-753- John Olson worked Small operation, 8157 at Xcel street not able to offer lighting and knows financing/leases business well 27 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.lipe-lic.coni Suburban Rate Authority: 612-337-9233 Regional Electrical Contractors who can do specific construction and maintenance services but need to do so under direction of cit InfraSource Bill Boyle, 320-656- Experience Not a full service 0018 installing street provider lighting systems for area other, including Xcel Many others maintenance National full service lighting companies looking to expand in region Republic ITS Tracy Wierzbicki, 817- National firm, do No presence in 633-5300 physical audits, the Twin Cities offer financing & area ownership as well as long-term maintenance M This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpe-11e.eom Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Conversation with an Alternative Lighting Provider Alternative Lighting Provider Connexus Energy Name of employees Leo Offerman, 763-323-2711 Date of conversation / meeting July 26, 2008 with Elsie Martin What type of lighting provided installed outdoor lighting systems. How long in business They now do street lighting for cities outside their electric Other comments He wants to meet with Gene Dietz and others in SRA. He thinks Connexus would be a good fit, he wants to hear what their needs are and explain what he offers. installation Connexus is an electric utility, they only use state licensed electrical contractors. Similar to Xcel, they own and maintain installed outdoor lighting systems. They now do street lighting for cities outside their electric service territory. They have been getting calls from cities in Xcel's service territory. They are not actively seeking markets Outage replacement from Xcel but where they are asked, they will serve (trade Preventive courtesy). They are a co-op, non-profit. It is not their goal to maintenance aggressively take over business from Xcel but if the territory is Locating not too far away, they will do it. Current customers in Xcel Underground cable territory include: repair City of Hugo (they serve electricity to parts of Hugo, Xcel other parts), Sartell, Coon Rapids, Blaine, Ramsey, Andover SPrvirPa nrovided Design They do design installation Connexus comes in and does the install and maintains the system. The difference from others is that Connexus would own the lights, all maintenance costs are theirs. The city has a fixed cost per year with its monthly fee. Contractors would need bid specs. They are not subject to state bid requirements on the initial install. Outage replacement Preventive They put all lights on a re -lamp schedule to minimize outage maintenance calls Locating Underground cable repair 29 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www-hpe-11c.com Suburban Rate Authority: 612-337-9233 Customer Service Service response time 48 hours for lights out, 72 hours if lighting system is outside their service territory Reports on response times fixtures, they also offer custom. They like to sit down with the Average response time Connexus would do locating Communications They have a few LED, they are testing them. The color is not Knock downs What happens? Connexus would cover knock downs Who makes the insurance claims? Locatina Who is responsible for Customers have choices. They do have a group of standard the taking the call? fixtures, they also offer custom. They like to sit down with the Who is responsible for Connexus would do locating performing the locate? They have a few LED, they are testing them. The color is not Choices for fixtures and lamas Decorative and Customers have choices. They do have a group of standard contemporary fixtures, they also offer custom. They like to sit down with the customer. Fixtures must be utility grade. Experience with new They have a few LED, they are testing them. The color is not technologies such as there, the energy efficiency is not there. The technology is still LED, solar, induction changing. They have tested some induction but there is no energy savings, there is labor savings but the cost payback is not there yet. Interest in new technologies Understanding of availability and time frame of new technologies System replacement and ownership Whose responsibility? I Connexus Metering I The lighting systems are metered by the serving utility -Experience with other li Ming providers Xcel outdoor lighting Others 30 This report was prepared by HPC, LLC foi- the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-11c.eom Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Conversation with an Alternative Lighting Provider Alternative Lighting Provider Reluminate, Inc Name of employees Joe Brady & Ted Fleener, 612-378-1677 Date of conversation / June 13, 2008 with meeting Steve Caskey & Elsie Martin What type of lighting Currently they provide outdoor and indoor lighting provided installation and maintenance for commercial Outage replacement customers, such as banks, shopping centers and Preventive property mana ement com anies. How long in business 5 years? Other comments Reluminate has been dealing with cities for 2 years in an attempt to get into the municipal lighting market. They had a meeting with SRA cities on January 16. They are planning to expand locally but continue to have all field work done by their own company technicians. Installation They believe they can cut costs and are cheaper than Xcel. Outage replacement They believe their software is a major competitive advantage Preventive over Xcel and others in its ability to better manage service maintenance orders and preventive maintenance programs. A future use will be using their software in conjunction with city maps. They can overlay them with Reluminate's software to locate lights. EMERGING ISSUE: "Dark sky" legislation has passed in the state of Minnesota encouraging cities to adopt ordinance to minimize light pollution. They believe this may become a bi er issue for cities. Services provided Design They offer a portfolio of services - design, installation (underground and overhead circuitry), ongoing maintenance, including preventive. They would maintain the poles, including re -painting, outage replacement, re -lamp service calls. Installation Yes Outage replacement Yes Preventive They believe their competitive strength is their software maintenance program for monitoring all aspects of the lights, managing the lighting assets. They presently use it to identify each pole and where it is located, height of pole, type of blob, and voltage. It gives a portfolio of their inventory. The software tracks invoicin and when the lamp is put in. The software displays a 31 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpe-11c.com Suburban Rate Authority: 612-337-9233 Customer Service Service response time light (green, yellow or red) based on hours of operation. The Reports on response hours of operation are calculated based on 3,000 hour life, times assuming 10 hours per day use. In addition, guys in the field Average response time can take pictures of anomalies with their cell phones and Communications send them in, such as a knockdown. These photos are then online for the customer and can be sent to an insurance company. They replace 1/3, 1/3, 1/3 as part of their preventive maintenance program, re -camping everything over 3 years. Once a lamp starts to re -cycle, it's going bad and will shorten the life of the ballast. There is a big difference in cost between the ballast and lamp. It costs $160-180 to replace a ballast, and they can get that cost down. The ballast has a 12 to 15 year life. By re-lamping, they save the life of the ballast. A cycling lamp will cut the life of a ballast and increase the cost to replace it to $300-$400. This is one way Reluminate believes they can save money for the cities. They also have a product line of 250 W and 400 W metal halide lamps (EYElamp) that can be direct replacements for HP Sodium without having to change the ballasts. Locating If it is their underground cable, they would be responsible for locating. They would subcontract it out. Underground cable Yes repair Customer Service Service response time Within 24 hours Reports on response On-line times Average response time Communications On-line Minneapolis Public Schools use Reluminate. For changing a ballast inside a building, Reluminate could do it in one hour versus 8 hours with 2 guys for a school to do it in house. This is another way that Reliminate can save the cities money. They retro fit inside and do complete analysis and paperwork. Knock downs What happens? For knockdowns, they would charge time and materials. They have knockdowns now in parking lots but they don't handle the insurance claim. They can document what happened and will bill the insurance company. The step they can't do is taking the process from the accident to filing with the insurance company. They will take it from time pole is hit to when it is put back up. 32 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7172 / www.hpc-llc.com Suburban Rate Authority: 612-337-9233 Who makes the City insurance claims? Locatina Who is responsible for City the taking the call? show box, acorn fixtures. Who is responsible for If it is their underground cable, they would be responsible for performing the locate? locating. They would subcontract it out. Choices for fixtures and lamas Decorative and They carry a complete line and wide variety of decorative, contemporary show box, acorn fixtures. Experience with new They are testing LED at the Mall of America in parking ramps. technologies such as LED lights have been around for 20 years but we don't really LED, solar, induction know how they will last. 100,000 hours means 20 years with no replacement of ballast or bulbs. They are extremely expensive but could be a real deal in the next 5 years. LED cuts energy costs by 60-80% and they don't have to be replaced. Interest in new Lighting systems off the grid, a pole that runs off solar power. technologies There is an army base in Texas and manufacturing company in Wisconsin with these light systems. LED is 12 volt and a solar panel is uife feasible. Understanding of availability and time frame of new technologies System replacement and ownership Whose responsibility? Reluminate said that they would be willing to buy assets from Xcel, own them for 10 years and sell them to city for $1. They would be interested in owning lighting systems, financing it. Metering Metering Experience with other liahtina providers Xcel outdoor lighting Others When asked about who are their competitors, they said 90% are gypsy, non -licensed electricians. They mentioned Xcel, BLO as selling lighting and changing lighting, Suburban Lighting and Amfec. We were surprised that they didn't mention others. 33 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 452-567-74721 www.lipe-tic.com Suburban Rate Authority: 612-337-4233 Suburban Rate Authority - Street Lighting Review Conversation with an Alternative Lighting Provider Alternative Lighting Provider Republic ITS Name of employees Tracy Wierzbicki, 817-633-5300 Date of conversation / meeting August 20, 2008 with Elsie Martin What type of lighting provided Specializes in streetlight and traffic signal maintenance, public infrastructure services, including financing & ownership. How long in business Owner consulting in street lighting since 2001 Other comments They are willing to come to the Twin Cities to meet with the SRA cities. Services provided Design YES Installation YES Outage replacement YES Preventive maintenance YES Locating YES Underground cable -repair YES Customer Service Service response time It is different with each community and they would negotiate Who makes the insurance claims? depending on the needs of the community. For some it is 48 hours, others in might be 5 days, it varies Reports on response times Average response time Communications Knock downs What happens? Republic ITS would fix it. Who makes the insurance claims? The insurance claims are made by the cities. Locating 34 This report was prepared by HPC, LLC for the Suburban Rate Authority 11PC, LLC: 952-567-7472 /wwiv.1ape-11c.com Suburban Date Authority: 612-337-9233 Who is responsible for The communities take the locating call. the taking the call? standard. They can provide whatever the city wants Who is responsible for Republic ITS would perform the locate. performing the locate? some induction lighting in Florida. They work with all the Choices for fixtures and amps Decorative and it depends on the city, the can go with the community's contemporary standard. They can provide whatever the city wants Experience with new They are piloting with LED in several communities. They have technologies such as some induction lighting in Florida. They work with all the LED, solar, induction manufacturers. Interest in new technologies Understanding of LED is not ready yet but they want communities to get availability and time experience with the technology. frame of new technologies System replacement and ownership Whose responsibility? It depends on the community. They would do an audit, look at the level of service needed and work with the utility. It is different with every community Metering Metering They work with the community and the serving utility Experience with other lighting providers Xcel outdoor lighting Others 35 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.itpe-fle.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority e Street Lighting Review Conversation with an Alternative Lighting Provider Alternative Lighting Provider Signature Lighting Reference Name, Company John Olson, 763-753-8157 Date of conversation June 27, 2008, with Steve Caskey What type of lighting provided Provides design, installation and maintenance How long Since 2004 Other comments Has provided a quote to the City of Eden Prairie for a replacement system. They teamed with WHResponse in bidding a complete package of services. Installation They see cities expanding their community lighting especially along access roads to developments where the developers have installed lighting. They also see that cities want pretty as Outage replacement well as safe street lighting. Fewer and fewer cities are satisfied with the utilitarian systems. Preventive Signature has a couple of employees responsible for sales, maintenance design, procurement and installation project management. Locating The hovo done work for cities as well as developers Services provided Design They do design, it's their forte. Installation They manage the installation process. They contract with Qualify Underground Construction for installation services. (Quality does similar work for Xcel) Outage replacement They do some maintenance work. This work is also performed by Quality and others depending upon location. Preventive maintenance Locating Can provide via contractors such as Quality Underground cable Can provide via contractors such as Quality repair Customer Service Service response time Their clients, who own their own lighting systems, often hold a spare street light for emergency replacement. Signature will then automatically procure a replacement when the spare goes into service. Reports on response 36 This report was prepared by HPC, LLC for the Suburban Rate Authority IUPC, LLC: 952-567-7472 1 www.lipe-Ile.coni Suburban Rate Authority: 612-337-9233 times -Average response time Communications Knock downs What happens? Who makes the insurance claims? Locatina Who is responsible for They provide a wide variety of lighting options and they see the taking the call? municipalities desiring more options. They will work with Who is responsible for customers to find the fixtures that best meet their needs. performing the locate? They have not provided any LED systems to -date but are Choices for fixtures and lamps Decorative and They provide a wide variety of lighting options and they see contemporary municipalities desiring more options. They will work with customers to find the fixtures that best meet their needs. Experience with new They have not provided any LED systems to -date but are technologies such as staying on top of this emerging technology. The current cost LED, solar, induction of LED's are about 7X conventional lamps. They believe the costs need to get down to 2-3X before the market will move to it. They understand that heat issues still need to be worked out. Interest in new There are some control systems for lighting on the market that technologies may be of interest. These systems allow a city to move away from just photocell control. Ideal for situations where some lighting can be turned off in low traffic times. Understanding of Appears to be generally knowledgeable. availability and time frame of new technologies System replacement and ownership Whose responsibility? Signature has had a few inquires on this although they are not convinced that leasing the system is in the best interest of the city. Experience with other lig ting providers Xcel outdoor lighting John had worked for many years in Xcel's outdoor lighting group. He started Signature Lighting when he left Xcel during the time Xcel was considering getting out of the street lighting business. Others 37 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpc-lic.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Conversation with an Alternative Lighting Provider Alternative Lighting Provider WHResponse Reference Name, Company Phil Glawe, 763-477-3096 Date of conversation June 27, 2008, with Steve Caskey What type of lighting provided They are able to provide a full range of maintenance services (outage response, Preventive preventative, knockdown maintenance re air/re lacement, pole maim). How long For the last 3+ yrs have been offering street lighting services outside their service area (Wright -Hennepin Electric Cooperative Other comments Has provided a quote to the City of Eden Prairie for Installation maintenance services for a replacement system. They Outage replacement teamed with Signature Lighting in bidding a complete package of services. They see cities expanding their community lighting especially Preventive along access roads to developments where the developers maintenance have installed lighting. They also see that cities want pretty as Locating well as safe street lighting. Fewer and fewer cities are satisfied with the utilitarians stems. They have been doing street lighting within their service area for many years. It has been a struggle for them to get long Underground cable term maintenance agreements such as those Xcel gets. Services provided Design Yes Installation Yes Outage replacement They do some maintenance work. This is their forte. This work is performed generally by outside contractors but they can also fa WHE €field crews. Preventive Their preventative maintenance program calls for a 5 yr maintenance relamping schedule. Locating They are willing to provide locating services. This would be an added cost. There are also a number of issues related to the processing of the locating ticket that needs to be worked out with a city to make it work. Underground cable Yes repair This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-1Jc.coni Suburban Rate Authority: 612-337-9233 Customer Service Service response time They commit to a 72 hour outage response time and the taking the call? generally achieve it within 48 hours. Between distributors and Who is responsible for the subcontractors, adequate lamp and ballast inventories Who makes the are maintained for the large variety of lighting system. Reports on response times response time -Average Communications Generally aware Knock downs What happens? They take full responsibility for insurance claims on the taking the call? knockdowns. They city only needs to provide the police Who is responsible for report. Who makes the They will insurance claims? Locatina Who is responsible for They will the taking the call? Who is responsible for They use Quality and LBP out of Maple Lake to do locating. performing the locate? Choices for fixtures and lamps Decorative and They provide a wide variety of lighting options contemporary Experience with new Not aware of any technologies such as LED, solar, induction Interest in new technologies Understanding of Generally aware availability and time frame of new technologies System replacement and ownership Whose responsibility? They are willing to provide a full maintenance package for a flat per fixture monthly fee just like the Group V maintenance. Mete Exnerience with other liahtina providers Xcel outdoor lightinq Have worked in communities served by Xcel Others 39 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721www.hpc-IIc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Appendix E - References for Alternative Street Lighting Providers Lighting Provider Reference City or Company Contact Conversation, see separate pages below Connexus Energy Leo Offerman, 763-323-2711 July 26, 2008, E Martin Connexus Energy City of Andover Dave Berkowitz, 763-767-5130 July 28, 2008, E Martin Connexus Energy City of Hugo Chris Petree, 651-762-6316 Connexus Ener City of Sartell Brad Borders, Public Works Director, 320-258-7304 InfraSource, A Quanta Services Bill Boyle, 320-656-0018 July 24, 2008, Company bilf.boyle@infrosourceinc.com E Martin fnfraSource City of Prior Lake Steve Albrecht, 952-447-9890 InfraSource City of Savage John Wickman, 952-882-2660 Reluminate Joe Brady & Ted Fleener, 612- 378-1677 Jun 13, 2008, S Caskey & E Martin Reluminate Wells Fargo Ted Narveson, 612-667-0703 July 23, 2008, E Martin Reiuminate USBank Terry Stade, 763-536-5303 July 24, 2008, E Martin Republic ITS Tracy Wierzbicki, 817-633-5300 Aug 20, 2008, E Martin Republic ITS See brochure (pdf file) for listing of references Signature Lighting John Olson, 763-753-8157 Jur? 27, 2008, S Caskey Signature Chisago City John Pechman, Administrator, 651-257-4162 July 31, 2008, E Martin -Lighting Signature Lighting City of Crystal Mick Cyert, Project Manager, 763-531-1161 July 31, 2008, E Martin Signature More references listed below. -Lighting Wright Hennepin Response Phil Glawe, 763-477-3096 Jun 27, 2008, S Caskey WH City of Farmington Kevin Scharzman, City July 28, 2008, 40 This report 1was prepared by HPC, LLMC for the Suburban Rate Authority HPC, LLC: 952-967-74721www.lipe-lic.coni Suburban Rate Authority: 612-337-9233 Response WH Response has Engineer, 651-463-1600 E Martin completed 2 outdoor decorative lighting turnkey projects for Farmington, one project in 2006 and another Project in 2007. (We have maintenance contracts on both of theseprojects) WH K Hovnanian Homes Shawn Siders, Community Aug 1, 2008, Response WH Response Planning Manager, 952-253- E Martin completed 4 separate 0460 outdoor decorative lighting contracts in K Hovnanian`s Maple Grove- Rush Creek Develo meat In 2007 WH City of Monticello John Simola, Public Works Response WH Response has Director, 763-295-3170 completed 4 outdoor decorative lighting turnkey projects for Monticello since 2005, (we also have maintenance agreements on all 4 of these ro'ects). WH City of Lino Lakes Mike Grochola, Director of Response WH Response has Economic Development, 651 - completed 1 outdoor 982-2427 decorative lighting turnkey project for Lino Lakes - 2006 -Legacy at Woods Edge and is currently finishing up a change order - Legacy at Woods Edge -phase 2. (We will have maintenance contracts on both these projects WH Backes Companies Dennis Backes, Owner, 763 - Response WH Response 566-1524 completed 1 outdoor decorative streetlight project for one of his 41 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpc-llc.com Suburban Rate Authority: 612-337-9233 Signature Lighting Client and Industry References UTILITIES Xcel Energy - Ms. Sarah Conners, Director 1999 - 2004 Wright Hennepin Electric, Mr. Phil Glawe, Manager - 763-477-3000 - current Polk -Burnet Cooperative, Mr. Steve Stroshane, Operations Engineer 715-646-2191 - current River Falls Public Utility, Mr. Chuck Beranek, Operations Superintendent 715-425-0928 CITIES Mr. Dave Gromr-nesch, Engineering, City of Burnsville 952-895-4508 Mr. John Pechman, Administrator, Chisago City 651-257-4162 Mr. Mick Cyert, Project Manager, City of Crystal 763-531-1161 Mr. Lee Marro - City Engineer, City of Farmington 651-463-1601 Mr. Dave Iverson, Administrator, City of Glenwood 320-634-5433 Mr. Scott Anderson, Engineering, City of Hugo 651-762-6326 Mr. Mike Grochala, Director of Economic Developinent, City of Liao Lakes 651-982-2427 Mr. Brent Aretz, Public Works Director, City of Norwood Young America 952-467-1830 Mr. Brian Hilgardner, City Engineer, Empire Township (Bolton and Menk) 952-890-0509 Mr. Ton? Hammitt, Engineering, City of Shoreview 651-490-4654 Mr. Bill Marx, Administrator, City of Spooner WI 715-635-8769 Mr. Mike Buchite, Mayor, City of Taylors Falls, 651-465-5133 Mr. John Simola, Public Works Director, City of Monticello 763-295-3170 Mr. Dave Hall, Bridge Architectural Specialist, MNDOT 651-747-2174 DEVELOPERS Mr. Ryan Benson, Senior Land Manager, Pulte Homes 651-255-7151 Mr. Gordie Howe, President, Masterpiece Homes of Minnesota, MN 651-484-3244 Mr. Scott Dahlke, Land Manager, Quality Site Designs 763-550-9056 Mr. Joluz Caroon, Land Coordinator, Ryland Homes 952-229-6000 Ms. Deb Ridgeway, Land Development, Rottlund Homes 651-638-0517 42 This report was prepared by 11PC, LLC for the Suburban Rate Authority UPC, LLC: 952-567-7472 / www.hpe-fic.com Suburban Rate Authority: 612-337-9233 Developments in the city of Delano WH City of St. Michael Marc Weigle, Community Response WH Response has an Development Director, 763 - outdoor decorative 497-2041 lighting maintenance contract on 3 fights as a pilot project. Signature Lighting Client and Industry References UTILITIES Xcel Energy - Ms. Sarah Conners, Director 1999 - 2004 Wright Hennepin Electric, Mr. Phil Glawe, Manager - 763-477-3000 - current Polk -Burnet Cooperative, Mr. Steve Stroshane, Operations Engineer 715-646-2191 - current River Falls Public Utility, Mr. Chuck Beranek, Operations Superintendent 715-425-0928 CITIES Mr. Dave Gromr-nesch, Engineering, City of Burnsville 952-895-4508 Mr. John Pechman, Administrator, Chisago City 651-257-4162 Mr. Mick Cyert, Project Manager, City of Crystal 763-531-1161 Mr. Lee Marro - City Engineer, City of Farmington 651-463-1601 Mr. Dave Iverson, Administrator, City of Glenwood 320-634-5433 Mr. Scott Anderson, Engineering, City of Hugo 651-762-6326 Mr. Mike Grochala, Director of Economic Developinent, City of Liao Lakes 651-982-2427 Mr. Brent Aretz, Public Works Director, City of Norwood Young America 952-467-1830 Mr. Brian Hilgardner, City Engineer, Empire Township (Bolton and Menk) 952-890-0509 Mr. Ton? Hammitt, Engineering, City of Shoreview 651-490-4654 Mr. Bill Marx, Administrator, City of Spooner WI 715-635-8769 Mr. Mike Buchite, Mayor, City of Taylors Falls, 651-465-5133 Mr. John Simola, Public Works Director, City of Monticello 763-295-3170 Mr. Dave Hall, Bridge Architectural Specialist, MNDOT 651-747-2174 DEVELOPERS Mr. Ryan Benson, Senior Land Manager, Pulte Homes 651-255-7151 Mr. Gordie Howe, President, Masterpiece Homes of Minnesota, MN 651-484-3244 Mr. Scott Dahlke, Land Manager, Quality Site Designs 763-550-9056 Mr. Joluz Caroon, Land Coordinator, Ryland Homes 952-229-6000 Ms. Deb Ridgeway, Land Development, Rottlund Homes 651-638-0517 42 This report was prepared by 11PC, LLC for the Suburban Rate Authority UPC, LLC: 952-567-7472 / www.hpe-fic.com Suburban Rate Authority: 612-337-9233 Mr. Ian Peterson, Director of Land Development, Centex Homes - 952-988-8210 Mr. David Hempel, Project Manager, CPDC 651-556-4525 VENDORS Mr. Dan DeLong, President, Architectural Lighting Designs, Minneapolis MN (Manufacturers Representative) 612-252-4100 Mr. Brandon Smith, Senior Representative, Holophane Lighting. Stillwater, MN (Manufacturers Representative) 651-275-1936 Mr. Jeff McCammon, US Sales Manager, Cooper Lighting, Peachtree GA (Manufacturer) 707-486-4800 Mr. Paul Piasha, President, Mountain States Lighting Inc. Utah (Manufacturers Representative) 303-838-4430 Mr. Mark Dean, US Sales and Marketing Manager, Lumec, Inc. (Manufacturer) 815-467-7005 Mr. Ken Taillon, Senior Lighting Designer, Short Elliott Hendrickson Inc. (Engineer) 651-765-2980 Mr. Tom Vavra, President, JT Services, North Mankato, MN (Material Suppler) 507-387-5962 Mr. David DeLaittre, Sales, Crescent Electric, St. Paul, MN (Material Supply) 651-227-0172 Mr. Clare Otto, Quotes Specialist, Minneapolis, MN (Material Supply) 1-800-582-5293 CONTRACTORS Quality Underground Services, Jay Osborne, President, 651-365-7344 Specialize in all underground pipe installation for utilities and Signature Lighting, Inc. Outdoor Lighting Services, Shawn Nasby, President, 612-819-5410. Lighting Maintenance Michel's Underground, Torn Osborne, General Manger, Joint Trench contractor 43 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.lipe-Ile.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority m Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider Connexus Energy Reference Name, Company City of Andover, Dave Berkowitz, 763-767- 5130 Date of conversation July 28, 2008 with Elsie Martin What type of lighting provided Outdoor streef lighting How long Yes, Connexus is power company Services provided Design Yes Installation Yes Outage replacement Yes, they have yearly contract with a monthly fee per fixture Preventive maintenance Yes Locating Yes, Connexus is power company Underground cable repair Yes, Connexus is power company Other comments City owns one commercial/industrial system but they now have a maintenance agreement with Connexus. It takes the headache away from him, he doesn't understand the business. Four years ago they had a big go around with a lighting manufacturer with wafer getting in the fixture. Connexus would have taken care of all that. Customer Service and Cost Service response time They call a contact person and they fix it in a couple days. Reports on response No times Average response time Don't know for sure Communications They have superior service, he is very happy, Leo is good to deal with. They are the local electric company and hard to beat. Knock downs What happens? Connexus takes care,of everything, it is all part of the monthly fee Who makes the insurance claims? 44 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-11c.eom Suburban Rate Authority: 612-337-9233 Locating Who is responsible for They are happy with choices, they like to keep it simple. the taking the call? When they purchased the fixtures directly, they had a lot of Who is responsible for Connexus performing the locate? care of all the issues. Choices for fixtures and lamps Decorative and They are happy with choices, they like to keep it simple. contemporary When they purchased the fixtures directly, they had a lot of issues with the manufacturer. Connexus is very good at taking care of all the issues. Experience with new No technologies such as priced out improvements that we haven't had the dollars to LED, solar, induction _ Interest in new No technologies Understanding of No interest at this time availability and time frame of new technologies System re lacement and ownership Whose responsibility? City owns only one commercial/industrial system, Connexus owns the other commercial systems. Developer puts in residential systems, city owns but Connexus does the billing directly to the customer. MeTeFinq ror Aces Metering Connexus handles the metering. They can meter it or include a dollar amount per month. For the private lights, they worked out a deal. Experience with other lighting providers Xcel outdoor lighting No Others The only experience is with the private companies that put in the poles. It was not successful, issues blow up. With Connexus, they take care of it. Leo at Connexus is great to work with, very responsive. He has priced out improvements that we haven't had the dollars to follow through with. 45 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpc-Ile.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider Reluminate Reference Name, Company First Bank/US Bank, Terry Stade, 763-536- 5303, cell 612-850-1977 Date of conversation July 24, 2008 with Elsie Martin What type of lighting provided Outdoor Now long 5 years, know owner for several years Services provided Design Not used. Reluminate is involved with city ordinances; they Reports on response times can do work to meet city standards. Joe made a proposal for Average response time the bank's drive up canopies but bank has not done them Communications yet. Reluminate has done layouts for parking lots. The bank has not moved forward on a $100,000 project Installation No, although Reluminate did do change outs. Outage replacement Yes Preventive Yes, state of the art on-line system for managing lighting, he maintenance can go into system and look at one pole for each of his 50 branches Locating Yes Underground cable Yes repair Other comments Reluminate is not the most economical on repair work, he can get it done cheaper. Reluminate always has 2 licensed electricians on the truck, lights can be changed by any guys unless there is a problem. Joe Brady has convinced him of the value of having the electricians. They have state of the art equipment and carry bulbs on the truck, they are very efficient in terms of time Their bulbs have a 2 year warrant Customer Service Service response time very good, will survey lighting system and catch bulbs when c clin to save ballast Reports on response times yes Average response time US Bank requires within 24 hours, they meet that Communications on-line survey system is neat, state of the art, don't know how This report was prepared by HPC, LLC for the Suburban Rate Authority HPC,ILLC: 952-567-7472/www.hpc-IIc.eoni Suburban Rate authority: 612-337-9233 would they would do it for city street lighting, however Knock downs What happens? Reluminate can do the pole, the bank subcontracts out the the taking the call? concrete work Who makes the bank insurance claims? time. Reluminate filled that niche in outdoor lighting. Other Locatina Who is responsible for bank the taking the call? rebates Who is responsible for Reluminate for their cables performing the locate? time. Reluminate filled that niche in outdoor lighting. Other Choices for fixtures and lamps Decorative and Happy so for with choices contemporary rebates Experience with new No technologies such as time. Reluminate filled that niche in outdoor lighting. Other LED, solar, induction companies not very big, can't respond to multiple sites. Bank Interest in new Not interested, too expensive now, using LED on Open/Close technologies signs at banks, he is not sure LED is good for parking lot lighting, Understanding of LED is a technology that is coming but not practical yet availability and time frame of new technologies m replacement and owners I Whose resoonsibilifv? I Bank Metering for Xcel Meterin Li htin is not metered separately from building Experience with other lighting providers Xcel outdoor lighting lots of $s to Xcel but no repair or installation of lighting, only for rebates Others Electric Sign & Lighting does same thing but tough response time. Reluminate filled that niche in outdoor lighting. Other companies not very big, can't respond to multiple sites. Bank has large area 47 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7972 / www.lipc-ile.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority ® Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider Reluminate Reference Name, Company Wells Fargo, Ted Narveson, 612-667-0703 Date of conversation July 23, 2008 with Elsie Martin What type of lighting provided Outdoor, all exterior How long 3 years Services provided Design Yes Installation Yes Outage replacement Yes Preventive maintenance Yes Locating Go thru Gopher State, if it is private, Reluminate does do it Underground cable repair _ Yes Other comments On a monthly basis, Reluminate visits all their locations, they have information on their locations in Minnesota and Reports on response Wisconsin times Reluminate is good value for the price, the contract is built Average response time that way. It is a one-year contract and he will look at it at the Communications end of the year. If costs are like this, he will continue with them. He has no complaints, he likes the staff, they are very professional. Customer Service Service response time For their security lighting, it must be replaced within 24 hours. Reliminate meets that goal, they are very good. Reports on response times Average response time Communications Reliminate provides reports on-line and their invoices tell who, what, time, etc. They rely on the web site for communications. It has not been an issue. Knock downs What happens? They don't get many, someone backs into a pole and it 48 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC; 952-567-7472/www.hpc-11c.com Suburban Rate Authority: 61.2-337-9233 Locatina Who is responsible for bends over or a snow plow runs into it. There has been only the taking the call? one since Reluminate has worked for them. He used Who is responsible for someone else, another contractor, to replace it. Who makes the bank insurance claims? locate. Reluminate would do the locates for their cable. Locatina Who is responsible for He is happy with choices, they have installed different lamps. the taking the call? but if a lamp burns out, good luck. Xcel just can't do it. If it is Who is responsible for They have a lot of underground cable - cameras, fiber optics. performing the locate? They call in a private company where there is need for a LED, solar, induction locate. Reluminate would do the locates for their cable. Choices for fixtures and lamps Decorative and He is happy with choices, they have installed different lamps. contemporary but if a lamp burns out, good luck. Xcel just can't do it. If it is Experience with new They are trying out LED and induction but not solar. technologies such as Reluminate got the supplier involved. LED, solar, induction Interest in new technologies Understanding of availability and time frame of new technologies System replacement and ownership Whose responsibility? The bank has that responsibility. When they do re -tamping, it will be a bid process, about every 5 years for exterior lighting. Now it is just outages. meTering Tor icei Metering Metering is all within the building package. They do not have separate metering for lighting. Experience with other liahtina providers Xcel outdoor lighting YES, they have Xcel in a few locations. Xcel is a great value but if a lamp burns out, good luck. Xcel just can't do it. If it is security lighting, he won't use Xcel. Others This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpc-I1c.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider Signature Lighting Reference Name, Company John Pechman, Administrator Chisago City, 651-257-4162 Date of conversation July 31, 2008 with Elsie Martin What type of lighting provided Outdoor street lighting How long Since John Olson was at Xcel Services provided Design Yes, John Olson has done most of the work with developers and for a few city projects. Several developments are in process. Installation Yes Outage replacement Yes, as needed Preventive No, they have not take John Olson's maintenance option, but maintenance he could be hired Locating No, Xcel does Underground cable No repair Doesn't know. None of their street lights are mission critical, all Other comments Customer Service and Cost Service response time They don't have a standard. He would rate John Olson's customer service as very good. He hasn't shopped lights in a while but they believe that quality materials are important. If they install with the best products, it delays the maintenance problems. They beefed up installation so they don't need maintenance contracts. For outages, the city contracts with John Olson or a local electrician. Or Xcel, for theirs stems. Reports on response No times Average response time Doesn't know. None of their street lights are mission critical, all suburban developments. Xcel has a 72 hour response goal but does not meet it. Communications Knock downs What happens? City gets call, does work or calls Xcel depending on what light 50 This report was prepared by HPC, LLC for the Suburban Rate Authority HIPC, LLC: 952-567-7472 / wwiv.1ipc-11e.cont Suburban Rate Authority: 612-337-9233 Locatina Who is responsible for it is. City would call John Olson to install pole if it is one of his. Who makes the insurance claims? City Locatina Who is responsible for City the faking the call? the approved fixtures that Xcel will maintain. Xcel used to Who is responsible for City or Xcel performing the locate? that Xcel dropped. Now Xcel seems to be building back up Choices for fixtures and lam s Decorative and John Olson uses fixtures in city's standards book that includes contemporary the approved fixtures that Xcel will maintain. Xcel used to have more choices. When John left Xcel, he offered the ones Others that Xcel dropped. Now Xcel seems to be building back up again. Experience with new None technologies such as LED, solar, induction Interest in new He has some interest but has had no new street lighting jobs in technologies 2 years. Looking at a small project on highway 8. Understanding of availability and time frame of new technologies replacement and owners Whose responsibility? I City for Xcel Metering I John Olson has to place the meter for Xcel I Exnerience with other liahtina providers Xcel outdoor lighting They have used Xcel, meet with them occasionally, they seem understaffed now. John Olson is much more responsive to them than Xcel. Others 51 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472) vvww.hpc-Ile.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider Signature Lighting Reference Name, Company Mick Cyert, Project Manager, City of Crystal, 763-531-1161 Date of conversation July 31, 2008 with Elsie Martin What type of lighting provided Outdoor street lighting installation How long One recent project (I forgot to ask date) Services provided Design John Olson was consultant and subcontractor to Quality Reports on response Underground Services who did the installation of 38 times decorative street lights in downtown Crystal. Mick is not Average response time certain of John's role but he ordered the lights, did the design Communications and la out, was lead person on the project. Installation No, Quality did construction Outage replacement No Preventive No, Quality wanted to provide but city does that maintenance Locating No Underground cable No repair Other comments I This was the first city street lighting project. Customer Service and Cost Service response time Reports on response times Average response time Communications John Olson met him met him several times on the sight. He would rate John as very good on customer service and communications. He was on top of everything, quick to get him answers, and they were always the right answers. Knock downs What happens? City has responsibility Who makes the insurance claims? 52 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpc-11c.com Suburban Rate Authority: 612-337-9233 Locatin Who is responsible for In house, the city the taking the call? The city only owns the 38 -light project. They do have some Who is responsible for City engineer is looking at, know it's out there but they are not performing the locate? ready to try. Choices for fixtures and lamps Decorative and He is very happy with the finished product. contemporary The city only owns the 38 -light project. They do have some Experience with new City engineer is looking at, know it's out there but they are not technologies such as ready to try. LED, solar, induction Mick C ert worked with Connexus when he worked in Blaine Interest in new technologies Understanding of availability and time frame of new technologies System replacement and ownership Whose responsibility? City -- they create performance specs, put it out for bids, Quality of bid Metering for Xcel Metering Adequate for Xcel Exnerience with other lighting providers Xcel outdoor lighting Xcel owns majority of lights in Crystal, they have no choice. The city only owns the 38 -light project. They do have some issue with Xcel regarding construction, they don't keep their schedules Others Mick C ert worked with Connexus when he worked in Blaine 53 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.hpc-llc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider W H Response Reference Name, Company City of Farmington, Kevin Scharzman, 651- 463-1600 Date of conversation July 28, 2008 with Elsie Martin What type of lighting provided Street lighting How long 2 outdoor lighting projects, one in 2006 and another in 2007 Services provides) Design No, city does design themselves Installation No, installed through a project (K€€mer Electric), city owns Outage replacement Yes, 15 year maintenance contract with monthly fee Preventive maintenance Yes Locating Doesn't know Underground cable repair Doesn't know, there are certain things that the maintenance contract includes, an underground fault would probably not be covered, cify must pay to have them fix Other comments Street fighting in the city's subdivisions is the developer's responsibility to install, then the city takes over. This is where they run into Dakota Electric and Xcel as providers. WH Response does not serve electricit to city of Farmington. Where they have used WH Response is in city reconstruct Reports on response projects where instead of regular over heads, they use times Cobras. They will put in decorative lighting. They bid it out as alternative provider. Whoever installs the lighting must come up with a 15 -year maintenance contract. Kilmer Electric did the install and has a relationship with WH Response. Customer Service and Cost Service response time He does not have many street lighting issues with WH Response. They have a 72 hour window and are usually have lights fixed within 24-36 hours. They are longer only if they need to order a part. They do a pretty good job. They are not outside the cost range - not more but also not less. Reports on response times 54 This report was prepared by HPC, LLC for the Suburban bate Authority HPC, LLC: 952-54`7-7472 I rvii,W.hpe-llc.Co►n Suburban Rate authority: 612-337-9233 Average response time Don't know, hasn't been any knockdowns, only one with Xcel Communications I He gets what they need, has had no problems Knock downs What happens? Don't know, hasn't been any knockdowns, only one with Xcel the faking the call? see below Who makes the In Xcel's case, Xcel did everything, insurance claims? Dakota Electric does a good job, on par with RH Response Locatina Who is responsible for Don't know the faking the call? the pole was finally replaced in September after numerous Who is responsible for No -Performing the locate? Dakota Electric does a good job, on par with RH Response Choices for fixtures and lamps Decorative and They installed what we wanted, an acorn type fixture contemporary the pole was finally replaced in September after numerous Experience with new No technologies such as Dakota Electric does a good job, on par with RH Response LED, solar, induction Interest in new No technologies Understanding of Not interested now availability and time- frame of new technologies System replacement and ownership Whose responsibility? I City Metering for Xcel Metering WH Response does not provide electricity, there is separate metering for Xcel and Dakota Electric Ex erience with other lighting roviders Xcel outdoor lighting Dissatisfied with Xcel. The knockdown occurred last February; the pole was finally replaced in September after numerous calls Others Dakota Electric does a good job, on par with RH Response 55 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-11e.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority - Street Lighting Review Reference Check for Alternative Lighting Provider Alternative Lighting Provider WH Response Reference Name, Company K Hovnanian Homes, Maple Grove, Shawn Siders, 952-253-0460 Date of conversation August 1, 2008, with Elsie Martin What type of lighting provided Street lighting, joint trench, external lighting for developments including club house, resort in Maple Grove How long 3 years Services provided Design Yes Installation Yes Outage replacement Yes Preventive maintenance Yes Locating Yes Underground cable repair Yes Other comments WH Response offers a full complement of design, installation, service, which is one reason they decided to go with them. WH is very good, professional, and quick to respond. It was a Reports on response very complicated project and they are very nimble. He has times worked with Xcel but Xcel is unwilling to do what they want, Average response time WH is very flexible. Customer Service and Cost Service response time Shawn turned over service contracts to his management company so he doesn't know directly how the maintenance part is going. However, he has not heard any complaints. Reports on response times Average response time Communications Very good _ Knock downs What happens? Who makes the 56 This report was prepared by HPC, LLC for the Suburban [tate Authority HPC, LLC: 952-567-7472/www.hpc-11c.coin Suburban Rate Authority: 612-337-9233 insurance claims? Locating Who is responsible for The developer decided to upgrade and WH has city - the taking the call? approved specs, they did not need special approval for the Who is responsible for u rades. performing the locate? They installed more efficient lighting with the tennis courts, WH Choices for fixtures and lamps Decorative and The developer decided to upgrade and WH has city - contemporary approved specs, they did not need special approval for the u rades. Experience with new They installed more efficient lighting with the tennis courts, WH technologies such as helped them with the homes close to the courts so the light LED, solar, induction would angle away from the homes, they made fine adjustments to the lighting. Interest in new Interest in more efficiency so lowers cost in long run. technologies Understanding of availability and time frame of new technologies System replacement and ownership Whose responsibility? City of Maple Grove and WH Response. They (the developer) paid a fee to the city so the city has replacement responsibility. Metering for Xcel Meterin Meterin is for WH Response, who serves Maple Grove Experience with other lighting providers Others Shawn has experience with Xcel, MN Valley Electric Coop (Carver Co) and Centre Pointe Energy. WH Response and MNVEC are best for response. He is able to get a hold of someone if there is a problem with lighting. Those two companies are good and he highly recommends them. Xcel outdoor lighting Xcel doesn't care 57 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpc-llc.com Suburban Rate Authority: 612-337-4233 Suburban Rate Authority (SRA) Street Lighting Review Appendix F s Decision Making Too! Worksheets M This report was prepared by HPC, LLC For the Suburban Rate Authority HPC, LLC: 952-567-7=472 / wwNv.hpc-Eic.eoin Suburban Rate Authority: 612-337-92.33 Please insert page from the Microsoft Office Excel file named "St Light Review Appendix F Decision Making Tool", worksheets: "Decisions" - one page, 11 by 17 inches 59 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpc-ltc.com Suburban Rate Authority: 612-337-9233 Please insert page from the Microsoft Office Excel file named "St Light Review Appendix F Decision Making Tool", worksheets: "Strategies" - one page, 1 1 by 17 inches 60 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 9:52-567-7472/www.hpe-IIe.eom Suburban Rate Authority: 612-337-9233 Please insert page from the Microsoft Office Excel file named "St Light Review Appendix F Decision Making Tool", worksheets: "Issues & Questions" - First page, 11 by 17 inches a This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472/www.hpc-11c.com Suburban Rate Authority: 612-337-9233 Please insert page from the Microsoft Office Excel file named "St Light Review Appendix F Decision Making Tool", worksheets: "Issues & Questions" — Second page, 1 1 by 17 inches 62 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.lipc-llc.com Suburban Rate Authority: 612-337-9233 Suburban Rate Authority (SRA) Street Lighting Review Appendix G - General Findings Other Findings • Street lighting is a small part of a city's operation. • Street lighting is an even smaller part of Xcel's operation and is outside of Xcel's core business. • Street lighting is becoming a bigger issue for cities due to the upcoming need to replace existing systems, the increasing demand for lighting and higher energy costs. • Cities have multiple, separate street lighting systems of different ages and sizes (one light to over 20 lights). For several cities, many of their street lighting systems are approaching 25 years of life and replacement decisions for each of these systems will need to be made in the near term. • Cities have different ways to pass on some or all of the cost of street lighting to its residents. This impacts how cities make street lighting related decisions. • Street lighting decisions are unique city to city and even within a city from lighting system to lighting system depending on what tariff the particular system is under. • In making decisions about street lighting, cities must continue to consider a number of factors beyond costs, such as service response, technology options and aesthetics. • Total life cycle costs need to be assessed before making a decision on a new or replacement system. Previous analyses have not always factored in underground circuit locating costs, costs to deal with knockdowns, and preventive maintenance cost and benefits. • Alternative street lighting providers are viable and anxious to enter the municipal market. • New technologies are available and more are emerging and merit consideration. Xcel Energy's Street Lighting Business • Xcel indicates it is intending to stay in the street lighting business for the long term • Xcel has decided that it cannot do everything for everyone but offers street lighting services around high volume products. • Xcel's street lighting services are meant to provide convenience to cities through a one-stop shop that has PUC oversight. Some cities value this convenience. • Xcel offers three basic options: o Prepaid (Group V) - city pays up front the installation costs, city pays a monthly per fixture maintenance and energy charge, generally not metered, Xcel retains ownership. o Leased - city pays a monthly per fixture fee that covers the lease of the equipment plus maintenance and energy, generally not metered, Xcel owns the system. 63 This report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-74721 www.hpe-llc.com Suburban Rate Authority: 612-337-9233 o Xcel Maintained only- city owns the system, city pays a monthly per fixture maintenance and energy charge, must conform to Xcel's standards For equipment, may or may not be metered. ® The Prepaid (Group V) option was first available in 1989. ® After 25 years, Xcel is the sole determiner of the timing of replacement for those systems that they own. For Leased systems, they will replace at their cost. For Prepaid systems, the city is responsible for the replacement, or alternatively, the city can agree to do a replacement under a leased approach. • To -date Xcel does not allow the cities to take over maintenance of the systems, even when the prepaid systems reach 25 years in age and Xcel does not want to continue to do maintenance. Technically Xcel employees cannot perform maintenance on systems designed to the National Electric Code since they are not licensed electricians. Utility designed and installed systems fall under the National Electric Safety Code. a Significant confusion exists around what happens after an Xcel owned system reaches its 25 -year life. Some of this confusion was brought on by Xcel in its communications with cities and due to the general lack of communications with the cities. ® Xcel has not always provided complete and clear information relating to their street lighting assets or services to cities. The cities can do a few things proactively to improve service response by Xcel. For example, o Provide Xcel with GIS mapping of their assets, if available, for use in identifying specific lights o Demand regular meetingss with Xcel street lighting to review service response specific to their communities o Monitor Xcel's preventive maintenance programs o Request Xcel to establish a schedule for replacement to enable proper budgeting Brooklyn Park's internal analysis has shown that Xcel's Prepaid option (Group V) is preferable to city owned due to the cost of locating and dealing with pole knockdowns. Alternative Street Lighting Providers ® Third party providers are trying to enter the market, cut costs for the cities and provide good services that compete with Xcel. ® If the city desires unique lighting fixtures, they need to look to at parties other than Xcel at this time. Other street lighting service options are available but are not fully equivalent to Xcel's one-stop shop offerings. All non-Xcel options will require metering. Non metered energy services are not provided by Xcel for systems they do not maintain due to their inability to monitor the number and size of the lamps. ® Taking over previously non -metered street lighting systems will require the cities to pay for the purchase and installation of circuit disconnect cabinets with appropriate meter sockets. ME This report was prepared by HPC, LLC for the Suburbau Rate Authority HPC, LLC: 952-567-7472/www.hpe-11c.coui Suburban Rate Authority: 612-337-9233 If the city proceeds with a non-Xcel alternative, they need to decide what they want to manage internally and what they want the outside contractor to do. They must assess alternative service providers not only on cost but also on service capabilities, preventive maintenance practices and their street lighting information management capabilities. An advantage of being in the SRA is that the experiences of one city with an alternative provider can be shared with all SRA cities. In other words, others can learn and gain benefit from one city's experience. Emerging Technologies and Issues • The cities,have positive experience with LED technology for traffic signals. The technology is not yet fully developed for municipal lighting applications. Adequate heat dissipation is the hurdle. If this isn't solved, the long life expectancy needed to make it competitive will not be realized. • Cities need to recognize that the "white light" and the light dispersion pattern from LED and other "white light" sources will look different to citizens. Piloting, education and transition will be needed for public acceptance, much like what happened with HP sodium. • There are other "white light" options commercially available today, ceramic metal halide and induction. Both offer energy savings over high pressure sodium. Induction lighting offers twice the lamp life. • Plasma lighting is just beginning to be considered for street lighting applications. This emerging technology expects to offer superior energy efficiency with lamp life similar to high pressure sodium. For street lighting applications, it is behind LED at this time. • Solar driven street lighting is developing. This technology could eliminate the connection with Xcel, their energy charges, and metering requirements. It might eliminate some of the wiring of the lights. This option does not eliminate the maintenance and knockdown issues. Energy storage and its impact on upfront costs is the critical issue. • Aesthetics, energy efficiency and environmental concerns will drive the desire of cities to deploy new lighting technologies. • Hazardous waste generation needs to be considered when making lighting choices. Mercury is present in all but LED lighting. Mercury vapor lighting is no longer an option for street lighting primarily due to hazardous waste issues. • Cities need to stay on top of potential legislation regarding light pollution, the "dark sky" issues. ' • Cities also need to be aware of energy efficiency policy legislation that might impact street lighting, such as relatively recent legislation that requires the phase out of mercury vapor lights. • Decisions for both new or replacement system should anticipate the potential for changing legislation. IS This.report was prepared by HPC, LLC for the Suburban Rate Authority HPC, LLC: 952-567-7472 / www.lipe-lle.com Suburban Rate Authority: 612-337-9233