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HomeMy WebLinkAboutCity Council Packet 06-16-2003 SpecialAgenda City of Plymouth Special City Council Meeting Monday, June 16, 2003 7:00 p.m. Council Chambers 1. Call to Order 2. County Road 73 Area and Possible Transit Grant 3. Bassett Creek Water Management Organization 4. Schedule future study session topics 5. Update with City Manager 6. Adj ourn Agenda Number: a DATE: June 6, 2003 for the Special City Council Meeting of June 16, 2003 TO:/Dwight D. Johnson, City Manager through 6 Daniel L. Faulkner, P.E., Director of Public Works FROM: Pat J. Qvale, Public Services Manager SUBJECT: SPECIAL CITY COUNCIL MEETING OPTIONS FOR HIGHWAY 55/COUNTY ROAD 73 PARK AND RIDE BACKGROUND: Plymouth Metrolink recently completed the 2002 Public Facilities Study. This study documented the need for additional park and ride capacity and designated the Highway 55/County Road 73 intersection as a priority site for a Park and Ride facility. The Public Facilities Study was completed by LSA Design of Minneapolis. Over the past 13 years, LSA Design has specialized in planning and architectural services in the areas of transit facilities and parking. They have focused their efforts on transit and governmental agencies that seek to build more effective and efficient transit systems, reduce congestion and enhance the image of mass transit. LSA Design has significant experience in developing transit facilities ranging in size from $8,000 individual bus shelters up to $15 million transit stations and parking structures. DISCUSSION: The proposed City of Plymouth project is to build a transit Park and Ride facility near th-e intersection of Highway 55/County Road 73. The City of Plymouth has an existing Park and Ride in the Southeast corner. The facility is located within MnDOT right-of-way and has 65 parking spaces. We are proposing a multi-level parking structure to accommodate 300 to 500 parking spaces with a cost range from $5 to $8 million. The City of Plymouth Engineering, Planning and Transit staff have met with LSA Design to discuss the pros and cons of the County Road 73 southeast comer (existing site) and the County Road 73 southwest corner (vacant parcel). Engineering staff believes this project will have no impact on the proposed County Road 73 alignment, but some realignment of the frontage road may be necessary. Based on an initial analysis, staff feels the southwest parcel (vacant parcel) offers the greatest opportunity for a successful Park and Ride facility due primarily to the potential for future mixed use development which can support and attract transit riders. Alternatively, the existing Park and Ride site could be significantly improved to meet additional transit demand, but the site may be too small for any ancillary uses. Discussions have started with MNDOT to partner O:\Enginccring\TRANSIPRESOL\2003\CC Mcmo re Specia[Session CR73 P&R_061603.d« SUBJECT: SPECIAL CITY COUNCIL MEETING OPTIONS FOR HIGHWAY 55/COUNTY ROAD 73 PARK AND RIDE Page 2 in the project. In addition, this project is on the regional Team Transit project list, which recognizes the project as a regional transit asset. A site recommendation and a preliminary design is required prior to proceeding with the federal funding Transportation Equity Act for the 215` Century/Congestion Mitigation Air Quality (TEA- 21/CMAQ) request. The 2003 solicitation for federal funding TEA-21/CMAQ application is due to Metropolitan Council in September 2003. These funds will be available for the 2007 — 2008 construction year. The last two solicitation processes were in 1999 for 2001 — 2004 construction and 2002 for 2005 — 2006 construction. LSA Design has enclosed their Scope of Work and Fee Proposal for the Planning and Design of the Transit Station Project and the TEA-21/CMAQ grant preparation. BUDGET IMPACT: The estimated total multiple year project cost range is $5 to $8 million. The federal funding component could fund up to 80% with a maximum of $5.5 million with a local match. The matching funds could be regional capital transit funding through the Metropolitan Council. Transit staff has also applied for funding up to $3.5 million through the recently approved 2003 legislative state bond funding for improvements in a trunk highway corridor. We have received a favorable verbal response from Metropolitan Council for funding this project. The attached proposal for the planning and the design of the Transit Station Project and the TEA- 21/CMAQ grant preparation from LSA Design could be up to $50,000. Staff will seek clarification of the scope of services to determine if all activities are necessary. This cost would be financed from the City of Plymouth Transit Fund. The current Transit Fund balance is approximately $1,200,000. RECOMMENDATION: Staff is recommending proceeding with the LSA planning, design, and TEA-21/CMAQ grant preparation proposal for the County Road 73 southwest corner (vacant parcel). Staff would plan to prepare the motion to accept the proposal for the Jurie 24`h council meeting. - Pat Y Ov—ale Public Services Manager attachments: LSA Memorandum LSA Scope of Work and Fee Proposal LSA Transit Station Project Development Packet 0:\Engincering\TRANSITRESOL\2003\CC Memo re SpccialSe sion CR73 P&R_h1603 d« MEMORANDUM D f S 1 G n To: Pat Qvale From: Jo Ann Olsen/Jim Lasher Project: Highway 55/County Road 73 Park and Ride Subject: Site Selection/Work Program Date: May 28, 2003 Background Plymouth Metrolink recently completed a 2002 Public Facilities Study. This study documented a need for additional park and ride capacity and designated the Highway 55/County Road 73 intersection as a priority site for a Park & Ride facility. The study referred to two potential sites at this location. The first is the existing 55/73 Park & Ride facility, which is located at the southeast corner of Highway 55 and County Road 73. The second site is located at the southwest corner of Highway 55 and County Road 73. Site Selection There is a 2003 Solicitation for Federal Funding (TEA-21/CMAQ) that could be used towards development of a Park & Ride Facility. The 2003 TEA -21 Solicitation application is due September 2003. Plymouth Metrolink has initiated preliminary review of the two sites to determine which site will be used in the TEA -21 Solicitation. The preliminary review included a meeting with PML staff and Plymouth Planning and Engineering staff. At this meeting LSA Design presented the steps necessary to produce a successful grant application and examples of Park & Ride facilities funded by through the TEA -21 process. (An outline of this presentation and a project example has been included as an attachment). After discussion of the pros and cons for each site, it was agreed that the preferred site was the southwest parcel (the vacant parcel, not including the existing shopping center). The following is. a summary of the discussion on each site: Southeast Corner (existing site) Pros: Existing Park & Ride facility (score points for improving an existing facility). Potentially no costs for land (Mn/DOT right-of-way could be transferred to the City of Plymouth at no post). Cons: Poor access to the site for buses and cars. Require a structure to provide increase in capacity (cost factor). No room for expansion or mixed use. Planning I Architecture I Urban.Design I Landscape.Architecture LSA DESIGN, INC. 1 250 Third Ave. North, Suite 600 1 Minneapolis, MN 55401 1 612.339.3729 1 Fax: 612.339.7433 I mall@isadesigninc.com — Southwest Corner (vacant parcel) Pros: Potential for transit oriented mixed-use development. (Points for mixed- use) Source of income to maintain site Springboard for redevelopment of area Improved access for buses and cars. (Points for efficiency, etc.) Park & Ride Expansion potential Can begin as surface lot and expand with a structure (Points for increased number of cars off congested roadway) Cons: Cost of property — purchase from private landowner. New transit facility/site Work Program In order to proceed with a 2003 TEA -21 Solicitation, PML must proceed with Site Development of the chosen site, along with neighborhood input and preliminary approvals. The attached proposal provides a scope of work and fee proposal for the steps necessary to develop a Park & Ride/Transit Oriented Development that will score well in the solicitation process. Attachments A. Scope of Work and Fee Proposal for TH 55/73 Transit Station Project Development B. TH 55/73 Transit Station Project Development Packet cc: James Lasher - LSA File (0313.03/20030604_PQvale.mem.doc ) ATTACHMENT A — SCOPE OF WORK AND FEE PROPOSAL The following are the next steps necessary to complete planning and preliminary design efforts for a Mixed -Use Transit Station in the southwest quadrant of CR 73 and TH 55. The basic program elements of this project includes a 500 car Park and Ride Facility, a Passenger Waiting Space and Commercial/Retail spaces that are suitable for this area as well as providing added benefit and convenience to transit users. Phase 1— Planning & Design 1. Programming & Site Selection — work with city staff to determine the exact size and extent of land available for the project, specific listing of site uses and sizes of each use, access/egress from adjacent roads, and basic transit service required to serve the facility. 2. Mixed -Use Master Planning — Upon completion of Task 1, we will prepare two concept design alternatives that address all program elements and meet the project requirements. Deliverables include: Site Plan at 1" = 50', Architectural Elevations and Sketches indicating proposed improvements and typical cross-sections indicating the relationships of this project on the surrounding land uses. 3. Council Work Session/Neighborhood Meeting — Upon completion of the Master Planning task, we will convene a meeting with City Council to review concepts and begin to build consensus for the project. At this point, we could either conduct an informal Neighborhood Meeting or request that the Planning Commission conducts a public hearing at a scheduled Planning Commission meeting for neighbors to attend and comment. 4. Upon review of all comments and suggestions obtained in Task 3, we will modify the plans accordingly and complete a Land Development Application to the City to secure "Preliminary Approvals" of the project concept and authorize the preparation of a TEA -21 Congestion Mitigation/Air Quality grant to the Metropolitan Council. This stage will not signify final approval of the overall project but will seek to confirm Council support and authorization to submit the grant). Phase II — Grant Preparation 1. Upon authorization to prepare the TEA -21 CMAQ grant, we will complete the grant application including all necessary graphics and calculations necessary for the submittal. 2. We will prepare requests for Letters of Support" from interested parties to be included in the grant package. Fee Proposal Phase I - $40,000 plus normal reimbursable expenses Phase II - $10,000 (if approved after completion of Phase I work) plus normal reimbursable expenses City of Plymouth Mixed -Use Transit Station Fee Proposal LSA Design Inc. TH55/73 Transit Station Project Development LSA Design, Inc. MOBILITY Moving People, Goods & Services throughout Your Community Key Decision Factors Project Strategies & Policy Decisions Site Selection and Grant Criteria Implementation Process r i dd fir• ,, t>• . ' S 1 a Project Strategies & Policy Decisions Integrate Transit with Mixed -Land Uses Highest & Best Transit Use FTA Guidance Development Guidelines & Incentives Overall Project Governance Financial Goals & Objectives J+Tf: 'I : - ? _' 1.+,Wyk. .,' V y1 ' - 1,. _ -.f} fir J Aw'40. f''• _ i .•f } t n F i TH55/73 Site Selection & Grant Criteria Transit as a Community Asset Site Selection based on Approved Criteria Site Access Visibility Route Proximity Demand Analysis Joint -Use Potential Develop Master Plan in Association with Transit and Selected Developer Input Integrated Planning Process/NEPA Project Maturity/Municipal Project Approvals MPO/MnDOT/Hennepin County Concurrence MARKET / LEGAL / POLICY CITY OF PLYMOUTH ESTABLISH PROGRAM ESTABLISH ADMINISTRATIVE GOALS 8 OBJECTIVES FRAMEWORK PLYMOUTH METROLINK MNDOT /MET COUNCIL MARKET ANALYSIS LEGAL ANALYSIS SITE DEVELOPMENT POLICIES SITE SELECTION PROGRAMMING SITE PLANNING DESIGN CONCEPT DESIGN ALTERNATIVES PROJECT APPROVALS GRANT CMAQ / STP / TE APPLICATION GRANT APPLICATION PRIORITY RANKING METHODOLOGIES DEVELOPMENT METHODOLOGIES PRIVATE SECTOR TESTING SITE ACCESS DESIGN AMENITY PACKAGE NEIGHBORHOOD MEETINGS PUBLIC HEARINGS Next Steps Select Development Type Joint -Use or Single Use Facility Programming & Site Selection Park & Ride Stalls Housing Retai 1 Develop Concept Master Plan Present Concepts at City Council Work Session Conduct Neighborhood Meeting/Public Hearing City Council Presentation and Concept Stage Approvals CMAQ Grant Application Eagan Transit Station & Deck I Eagan, MN D f S I G I7 Scope Station Area Planning; A/E design (site, station & deck) Transfer of development rights from Mn/DOT to MVTA Rezoning & Municipal Approvals Federal grant submittal and administration of award 5.5 M in CMAQ funds) Construction administration Features 850 car / 3 -level parking structure 15,000 s.f. mixed-use retail space t a Client Minnesota Valley Transit Authority Reference Beverley Miller, Executive Director Minnesota Valley Transit Authority 100 East Highway 13 Burnsville, MN 55337 952.882.7500 P l a n n i n g I A r c h i t e c t u r e I E n g i n e e r i n g I L a n d s c a p e A r c h i t e c t u r e D f S 1 6 n P•Ic,nFng ( Architect,ure rti,giear,..g ancsc pe e'ectur x.. ,w, . .. , .. a u ... ..,, ,,s D f S 1 G n Pn;'iAhch.fu.r E'ng Reaecrn Land`supe- lrcktecta-`r'e. n- 9 M.. - f e, c... .... DATE: June 12, 2003 for the City Council Meeting of June 16, 2003 TO: Dwight D. Johnson, City Manager through Daniel L. Faulkner, P.E., Director of Public Works FROM: Ronald S. Quanbeck, P.E., City Engineer SUBJECT: BASSETT CREEK WATERSHED MANAGEMENT COMMISSION CAPITAL IMPROVEMENTS PROGRAM FUNDING PROPOSAL For the past several months the Bassett Creek Watershed Management Commission (BCWMC) has been working on developing a Capital Improvements Program (CIP). The CIP includes two major areas. The first is identifying projects and proposing the timing for construction. The second is the source of funding for the projects. The City Council has reviewed aspects of the BCWMC CIP in the past and provided comments to the Commission. Earlier this year the Commission requested comments from the cities on various funding proposals. Attached is a summary of comments received. They indicate a wide range of opinion on funding the CIP. The Steering Committee met and reviewed the comments from the cities and provided a recommendation to the Commission. Attached is a memorandum describing the Steering Committee's recommendations. The Steering Committee recommended that the Commission pay the entire cost of the projects and that the funds be raised by a watershed -wide ad valorem tax. On May 12, 2003, a joint meeting of the BCWMC Policy Advisory Group (PAC) and Steering Committee was held. Representatives from all nine cities in the BCWMC were in attendance. Plymouth was represented by Councilmember Ginny Black, City Manager Dwight Johnson, and myself. The group generally appeared to agree with the ten year project schedule proposed. A copy of the CIP project schedule is attached to this memo. The issue of funding the projects appears to be much more difficult. A memorandum distributed at that meeting regarding funding capital projects is also attached. The group seemed in general agreement that the BCWMC should construct projects and the projects and timing listed were acceptable. It appeared that a majority of cities present were in favor of the BCWMC paying the entire cost of the projects and using a watershed -wide ad valorem tax to fund the projects. In addition there appeared to be support for studying the governance structure of the Commission. O:\Engineering\GENERAL\MEMOS\RON\2003\CC_BCWMC CIP_FundingProp.doc SUBJECT: BASSETT CREEK WATERSHED MANAGEMENT COMMISSION CAPITAL IMPROVEMENTS PROGRAM FUNDING PROPOSAL Page 2 The Commission has discussed the CIP, including the Steering Committee's recommendations. The Commission, to date, has not taken action on the item. Most recently the issue was discussed at the May 15, 2003 meeting and deferred to June 19, 2003, to allow Commissioners time to consult with the member cities. There appears to be significant sentiment of the Commission to act on the matter at the June 19 meeting. AD VALOREM FUNDING: Several formulas to fund CIP project have been considered by the BCWMC including: 1. the City in which the projects are located would pay the entire cost, 2. the BCWMC would pay the entire cost, 3. dividing the cost between the cities and BCWMC using various percentages for each, 4. based on a determination of who benefits from improvement and who is causing the problem requiring the improvement. Concern has been expressed with any funding method that does not comply with the existing Joint Powers Agreement since varying from it would require unanimous agreement by all the member cities. The three methods listed in the Joint Powers Agreement for charging the cities for projects are: 1. based 50% on tax capacity and 50% on land area within the BCWMC like the administrative budget funding, 2. negotiated allocation agreed to by all affected member cities, 3. a variation of the first method where the Commission can increase the proportion paid be one city if the city receives a disproportionate benefit. In addition the Joint Powers Agreement allows other funding sources such as grants or using the County's ability to levy an ad valorem tax. The Steering Committee has recommended and a number of cities have expressed support for an ad valorem tax levy to pay for the projects. The ad valorem funding option involves levying a tax throughout the watershed based on the cities' tax capacity. The ad valorem tax would actually be levied by Hennepin County and paid to the watershed for the project. The BCWMC currently has legal authority to fund capital projects by this method. The ad valorem levy can only be used for capital projects, not the administrative budget. Minnehaha Creek Watershed District which includes a portion of Plymouth currently funds projects by this method. To be eligible for funding by this method a project must be included in a CIP approved by Hennepin County. The County has the authority to decline to use this funding method and in all cases requires a public hearing. Attached is a series of tables which compares the cost within each City for each year of the CIP for three different funding options, the current BCWMC formula based on 50% drainage area, 50% tax capacity, according to tax capacity alone which would be the amount for a watershed -wide ad valorem tax, and the cost of projects located within the boundaries of each city. Also attached are two memorandums describing the average annual cost to various types of property of a watershed -wide ad valorem tax sufficient to fund the CIP. It estimates that the average annual cost for each individual residential unit would be $3.78. This is based on 45 % O:\Engineering\GENERAL\MEMOS\RON\2003\CC_BC W MC_CIP_FundingProp.dm SUBJECT: BASSETT CREEK WATERSHED MANAGEMENT COMMISSION CAPITAL IMPROVEMENTS PROGRAM FUNDING PROPOSAL Page 3 estimated percentage that is residential) of the overall average annual assessment divided by 32,750 residential units (0.45 x $275,000 / 32750 = $3.78). Home values in Plymouth may be higher then the watershed average which would result in a somewhat higher cost for the average Plymouth residence. There are several positive and negative aspects for using the ad valorem tax to fund CIP projects. Negatives for using ad valorem tax include: 1. The current governance structure does not provide equitable representation for the taxpayers in the watershed. 2. Special purpose taxes, such as this, add to the confusion on the tax bill reducing the ability for the taxpayers to understand what their money pays for. Positives for using ad valorem tax include: 1. The issue of who pays how much for what project is settled, and therefore, future disputes are greatly reduced. 2. The ad valorem tax would be outside the City's Water Resources Management Fund, and therefore, free up funds for other water resources projects such as cleaning water quality ponds, which appears to be an emerging potential future obligation for the City. EFFECT ON CITY PROJECTS: Several projects within the City of Plymouth are identified in the BCWMC CIP, including construction of the water quality ponds proposed along the southeast shore of Medicine Lake. A Preliminary Engineering Report has been prepared by the City for these ponds. To be eligible for funding by the BCWMC, the watershed must hold a public hearing for the project. If the City proceeds and constructs the project prior to the public hearing, it would not be eligible for BCWMC funding according to the Joint Powers Agreement. The CIP is part of the BCWMC Second Generation Plan. If issues involving the CIP are quickly resolved, the plan could begin the extensive review process in the next few months. This process will likely extend into 2004, the earliest funds could be secured for projects would be 2005. A public hearing on the Plymouth project cannot be held until after adoption of the plan. An alternative being pursued by BCWMC is to make a minor plan amendment to the existing BCWMC Watershed Plan. The existing Watershed Plan's CIP includes general reference to water quality projects for Medicine Lake. A minor plan amendment to more clearly define the projects as these two ponds and to identify funding sources could be made. The funding source identified is an ad valorem tax levy. If this effort proceeds, the required public hearings could be held this summer and portions of construction may begin late this year. The request for minor plan amendment has been forwarded to the Board of Water and Soil Resources, and a meeting held with a Hennepin County staff member to discuss the potential for using the ad valorem tax. GOVERNANCE: The issue of governance was raised at the Joint Steering Committee/PAC meeting. Currently, each of the nine member cities of the BCWMC has one vote regardless of O:\Engineering\GENERAL\MEMOS\RON\2003\CC_BCW MC__CIP_FundingProp.dm SUBJECT: BASSETT CREEK WATERSHED MANAGEMENT COMMISSION CAPITAL IMPROVEMENTS PROGRAM FUNDING PROPOSAL Page 4 the city's size or prominence within the watershed. Plymouth constitutes 46.77% of the area of the watershed and 47.18 % of the tax capacity. While Plymouth and Golden Valley together comprise 73.04% of the area, they only have two of the nine votes on the Commission. Conversely, if voting were determined by watershed area, Plymouth would only need to get cooperation from one other city to dominate the Commission. It was noted that Golden Valley, Crystal, and New Hope are exploring creative forms of governance as they investigate forming a joint water supply system which may address both concerns. The representatives of the cities present seemed to be amenable to investigating forms of governance to address these issues and it was suggested that direction to study the governance be acted on at the same time as the CIP. At the May BCWMC meeting the two issues were raised. The City Council may wish to suggest language that the City's commissioner could use for a motion. Governance was also discussed in a meeting between Plymouth and Golden Valley and the Mayors of Plymouth, Golden Valley, and New Hope met to discuss the issue. Conversations also have taken place with the Mayor of Minnetonka. SUMMARY: If the cities' commissioners vote consistently with the indication of the various cities at the Steering Committee/PAC meeting, it appears likely that the Steering Committee's recommendation that projects be funded by BCWMC using an ad valorem tax levied by the County will be adopted. In addition, it appears the Commission may approve a study on the governance of the watershed. Change in the governance will require modification of the Joint Powers Agreement which would require the unanimous approval of all nine member cities. The motion to study the governance issue could influence the type of study performed. The Council should consider whether they would like the Commission to perform the study perhaps by appointing a subcommittee or whether they would like the Commission to encourage the cities to study the governance issue in which case the cities would take the lead. Ronald S. Quanbeck, P.E. City Engineer attachments: BCWMC CIP Project Schedule dated April 2003 (Table 1) Memorandum: Re: Funding Capital Projects dated May 9, 2003 Memorandum: Re: Summary of Capital Improvement Program Comments dated March 6, 2003 Memorandum: Re: Steering Committee Recommendations on Funding of Capital Projects Costs dated March 20, 2003 BCWMC CIP Funding Options dated May 2003 (Table 4) Memorandum: Re: Capital Improvement Plan - Assessment per Residential Unit dated April 4, 2003 Memorandum: Re: Capital Improvement Plan - Annual Assessment per Property Types dated May 12, 2003 O: \Engineering\GENERAL\MEMOS\RON\2003\CC_BCWMC_CIP_Fund ingProp. dm Table 1 Bassett Creek Water Management Commission DRAFT Water Quality Management and Flood Control 10 -Year Capital Improvements Program April 2003 PVM7'051V--A-sed C1P0,f-0,i-03.XLS T.U.1.1-10,CIP A-1 2003 Year Map IDs 20061 20061 20071 2006 20091 20101 20111 20121 20131 2014 NOTES: W Other potential projects that the CIO" may Implement will be evaluated at the time the projects 3 Cws'wet wet detention pond for subwatershed BC94BI (Option a in Medicine Lake become more definite. Plan) so 0 ML -2 Reduce Gooss, Loadings by 75% (Option 17 in Medicine Lake Plan) 102,500 34,170 $34,170 $34,1601 Capital C..tcicesnot include land acquisition costs, but does Include legal, administration, and 25% ML 3, Reroute flows from subwatershed BC94 to a larger wet detention pond for BC92 90.2001 additional for contingencies. Option 9a in Medicine Lake Plan) & dredging of accumulated sediment 104.100 13.900 3 - Already consimcited K-4 Medicine Lake East Beach wet detention pond for subwatershed 8C107 (Option 11 in 5347.950 This project Includes dredging of accumulated sediment, as recommended by the City of Plymouth'sMedicinLakePlan) & dredging of accumulated sediment 401.850 53P900 Medicine Lake Watershed Implementation and Management Plan. The dredging cost Is the ML -5 4.1 Con Inict wet detention pond for subwatersheds BC98, BC9aA and BC98B (Option 5272540 cost shown below the line. 10a in Medkine Lake Plan) & dredging of accumulated sediment 314.740 MnDC1T sound wall construction In New Hope will require relocation A resixing of atom sewer ML -6 Construct wet detention pond for subwatershed subwatershed BC94132 (Option 6 in In this watershed, which couild Mad to City of New Hope participation In this project. Medicine Lake Plan) 510,800 10.800 MIL -7 in -Lake Herbicide Treatment (Option 18 in Medicine Lake Plan) 195.000 90.0011 5105.000 Th. Commission will consider Including repair of the existing control structure as part of the PwkeniX feasibility study for this project. Project Is In City of Golden Valley's CIP. PL -6 Improvements to stormwater basin in PL -A13 near Circle Park (from the City off S31.350 S31.350PlyrooidiParkersLakeImplementationPlan) Project costs may be offset by $150,000 LCMR grant, I I is In Ciry of 0 "Valloy'a CIP. WTH.Is' Dredging subwatershed FR -5 detention pond (Option 2 in Wirth Lake Plan) 40,000 1 540.0001 I P., Is not Included In the Cfty of Golden Valley's CIP. WTH-2 Highway 55 detention pond (Option 3 in Wirth Lake Plan) 151.200 1 $75,6001 $75,6001 The City of St. Louis Park supports a scaled-down, fees costly project that Includes park and WTH-3 In -lake alum treatment (Option I in Wirth Lake Plan) rt 1145.6130 1 W.6001 1 playground Improvements. The city " agrees with the Commlaslon's proposed schedule, but suggests -r-!uatIon of the Commisslon's water quality goal for Westwood Lake. JNone - site Table 2. Potential Future Water Qualk Capital Igroverfulnit Projects The City of New Hope has constructed NB -3W B. C. but not to the same degree as proposed In the lake and watershed management plan. NB -29A & 0 have hot been corustructed. These TW -I' Pond Expansion (Option I in Twin Lake Plan) 552,700 improvements will need to be re-evaluated as part of the feasibility study. Costs shown am for uwpj - NO -29A & 8 only. WST-I'* Flag Avenue cletentiorilskinvnirig facility (Option I in Westwood Lake Plan) 41413,800 231,9001 The City of New Hope has already constructed NB- 28A & B. The city will be constructing ponds N847A & NB -38A In the next year. Pond NB -36A may be constructed In conjunction with a church None - seat Table 2. Polemist Future Water Quality Capital Improvement Projects SO expansion project. These Improvements will need to be re-evalusted as part of the feasibility study. Costs shown me for NS -36A, NB -37A A NB -38A only. NLA " Construct ponds NB-35A.B.0 AND NB-29A.B (Option 4 in Northwood Lake Plan) 74,300 project to be completed as, put of the Boons Avenue and Broolorlew Golf Course Improvement NL -2 Dredge pond NB -07 (Option 2 in Northwood Lake Plan) 725.700 5241,900 5241,900 This 5241,900 projects In 2004. NL -3 own Lancaster Lane atom sewer (Option 31n Northwood Lake Plan) 45.200 45,200 • This project should be feasible as Paul of the City of Robblinsdes's street reconstruction project NLI " Construct ponds NB -36A, NEI -37A. NB -38A, & 145-28A, B (Option 5 in Northwood taking piece in the near futures. Lake Plant 141.100 141,100 Funding Is from remaining flood control project construction funds ($700,000). The floodprocifing BC _I 13 Pond BC -10-3 (Option 4 in Bassett Creek Main Stem Plan) 215,300 215,300 funds are proposed to be allocated as follows: 2003 - $100,000, 2004 - $200,000, 2005 - $300,000 andMiilFiNA2006 - $100,000. These arriounts are the Commission costs, at the 65% level of funding. Sea GR -21' Gimes Pond wet detention paid (Option 4 in Rice and Grunts, Ponds Plan) 1 80,000 S80,000J I Table Ill. CL -1 Ramada Inn detentbnJskimming facility (Option I in Crane Lake Plan) 89,100 CL -2 Jo Lane Wel Detumfion, Pond IAN. s2 585.100 585.1 None -see Table 2- Potential Future Water Qua' CVftw Improve P None -see Table 2. Potential Future Water Ouality Capital improvement Projects Year M !2 ID 0 Flood Control Improvement Option 20071 20081 20091 20101 20111 20121 2013 201 abn9It- system so! SO Sol i I 1 11 11 AL IWS339.14701 r $323260 I '-$24Z7001 $231.9001x4241,90014$294;6001 241:900 PVM7'051V--A-sed C1P0,f-0,i-03.XLS T.U.1.1-10,CIP A-1 2003 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 612) 337-9300 telephone 612)337-9310 fax hlrl2:/,'wunv.k,.nnedy-y aven.com CHARTERED CHARLES L. LEFEvERE Attorney at Law Direct Dial (612) 337-9215 email: clefevere@kennedy-graven.com MEMORANDUM May 9, 2003 To: Bassett Creek WMO Commissioners From: Charlie LeFevere C- Xle Re: Funding of Capital Projects I. INTRODUCTION The Commission has requested that I prepare a letter describing options available to the Commission related to the construction and funding of capital improvements. The Metropolitan Surface Water Management Act, Minnesota Statutes, Sections 103B.201 to 103B.252 (the "Act") requires that watershed management organizations WMOs") be formed to take jurisdiction over all watersheds in the Metropolitan area. The Act allows two kinds of WMOs. One is a traditional watershed district, organized under Minnesota Statutes, Chapter 103D. Watershed districts are governed by commissioners appointed by the county board and have powers specified in Minnesota Statutes for watershed districts and WMOs. The other form of WMO is a joint powers organization under Minnesota Statutes. Section 471.59. Joint powers WMOs are created by member municipalities and are governed as provided in the joint powers agreements between the municipalities, subject to the requirements of the Act and the rules of the Minnesota Board of Water and Soil Resources ("BWSR"). The cities of the Bassett Creek Commission decided in 1968 to form a joint powers organization rather than to allow the county to form a watershed district, and entered into a joint powers agreement for the creation of the Bassett Creek Watershed Management Commission CLL -231416v1 1 BA295-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 Watershed districts and joint powers WMOs have essentially the same duties for planning and management of surface water within their jurisdictions in the Metropolitan area. Among these duties are the preparation and implementation of surface water management plans. The Commission is currently in the process of preparing an updated surface water management plan as required by the Act and BWSR Rules. This is the so called "second generation plan," which will replace the current surface water management plan. A second generation plan is required to conform to current requirement of BWSR. A part of the surface water management plan is the capital improvement program ("CIP"). As a part of the planning process, the Commission will have to decide 1) whether to include construction of capital projects in the CIP, and 2) if so, how to pay for them. II. WHETHER TO CONSTRUCT CAPITAL PROJECTS. In the past, the Commission has undertaken one significant capital project. Between the late 70's and the mid 90's, the Commission organized and accomplished the construction of a flood control project for the watershed at a total cost of approximately $45 million, much of which was paid for by the United States Corps of Engineers and Mn/DOT. The Commission's CIP now under consideration includes projects that are primarily water quality projects. Whether to construct capital projects is a matter within the discretion of the Commission. Some watershed management organizations such as the Lower Rum do not have capital projects in their CIPs. Current drafts of the second generation plans for Shingle Creek and West Mississippi do not include capital projects. Other WMOs are undertaking construction of substantial capital projects. The Hennepin County staff reported capital expenditures in 2002 for the Lower Minnesota River Watershed District of $279,050, for the Nine Mile Creek Watershed District of $1,065,000 and for the Riley Purgatory Creek Watershed District of 2,300,000. Jack Frost of the Ramsey Washington Metro Watershed District reported that that watershed district has a budget of between $1 and $2 million per year, or about $20 to 25 per household per year. The Middle Mississippi Watershed Management Organization, a joint powers organization, plans to levy for capital projects of over $3 million per year through the year 2011. The Minnehaha Creek Watershed District constructed capital projects of $1.85 million this year. CLL -231416.1 BA295-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 If the Commission decides not to undertake capital projects, no decision will have to be made about funding. However, if the Commission decides to include capital projects inL- its CIP, several options for funding are available. III. FUNDING OPTIONS AND ALLOCATIONS OF COSTS. The Commission has three primary options under the joint powers agreement and state law for funding capital projects: 1) an ad valorem tax levied within the watershed by the Commission, 2) an ad valorem tax levied within the watershed by the county, and 3) a charge to member cities under the joint powers agreement. A. Tax Levy by Commission. State laws do not currently allow joint powers watershed management organizations to levy ad valorem taxes directly. However, the Commission could seek special legislative authority for such a levy. This course was chosen by the Middle Mississippi River Watershed Management Organization, a joint powers WMO that was authorized by a special law in 2001 to levy ad valorem taxes throughout that watershed. B. Tax Levy by Hennepin County. The Act authorizes watershed districts and joint powers WMOs to finance capital projects in their CIPS by having the County levy an ad valorem tax within the watershed. This kind of levy is more fully described in my memorandum of January 8, 2003, a copy of which is attached. This is the method used by the Minnehaha Creek Watershed District for its capital projects. C. Charge Member Cities under the Joint Powers Agreement. Under joint powers agreement, charges to member cities for capital projects of this kind are allocated on the basis of one of three methods, or formulas. These are: A negotiated allocation agreed to by all affected city members. 2. A formula in which 50% of the project cost is prorated among the members on the basis of land area of that member city within the watershed and 50% of the project cost is allocated on the basis of the net tax capacity of that city within the watershed (the "50/50 formula"). The CLL -231416v1 3 BA'_95-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 Commission's administrative charges are allocated among cities on this basis. 3. The third formula is a variation on the "50/50 formula." The Commission can increase the proportion of the cost paid by one city if that city receives a benefit that is so disproportionate as to require a modification to the 50/50 formula in a sense of fairness. One of these methods must be used by the Commission to allocate costs among member cities unless there is an amendment, agreed to by all cities, to the joint powers agreement. The procedure to be used for undertaking a capital project and determining the allocation of costs under the joint powers agreement is described in my memorandum of January 12, 2000, a copy of which is attached. The city may raise funds to pay for its share of the project in a number of ways including a city-wide ad valorem tax, a special district ad valorem tax, storm sewer utility charges, and in some cases, special assessments. See attached page labeled BUDGETING AND FINANCING OPTIONS." D. Considerations in Selecting Options The option of a direct ad valorem tax levy by the Commission is not available without a change in state law. Additionally, a levy by the Commission and a levy by the county would be identical except for the procedures followed. Therefore the two primary options for purposes of comparison are 1) charges to the member cities under joint powers agreements (or "sending the bill to the cities") and 2) a county ad valorem tax levy (or "sending the bill to the county"). The factors distinguishing the two options include the following: 1. Allocation among cities. Under the two options, there will be a difference between the total amount paid by the citizens and taxpayers of the member cities. This results from the fact that if the bill is sent to the county, the project cost is paid on the basis of the tax capacity of that part of each city within the watershed. However, if the bill is sent to the cities, the formula would generally call for an allocation among cities that is based 50% on tax capacity and 50% on area. Therefore, because land area does not correlate exactly with tax capacity, these two methods will yield different results. These differences can be seen on "Table IV" prepared by Barr Engineering. 2. Allocation among individuals. The two options will also result in a different allocation among individual landowners or taxpayers. This difference will vary from city to city depending on the method used by that CLL -331416v1 4 BA:95-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 city to pay its share of project costs if the Commission sends the project bill to the cities. For example, if the city pays for this cost by levying ad valorem taxes, a more expensive house will pay a higher share of the cost than a less expensive house. However, under a typical storm sewer utility program, each of two houses would pay the same cost. 3. Tax levy and levy limits. If the bill is sent to the county, .the tax levy would not be included in the city levy so that city taxes would be available for other uses. This is may be particularly important in a city that is currently levying up to its levy limits. In cities that pay Commission charges through storm sewer utility charges, the effect of using a county tax levy would be that those charges could be reduced, or city storm sewer utility funds could be devoted to other purposes. 4. Tax deductibility. If the bill is sent to the county, the ad valorem taxes levied would be deductible by individuals from their income. If the bill is sent to the cities, whether the payment by an individual is deductible for income tax purposes would depend on whether the city pays its share by an ad valorem tax levy (in which case the payment would be deductible) or a storm sewer utility charge (in which case the payment would not be deductible). In considering these differences, it should be kept in mind that the average estimated cost per household per year as determined in the Barr analysis for the proposed CIP would be about $3.78. Therefore, the impact of selecting one option or the other as felt by a typical household would be less than one dollar per year. N. OTHER ISSUES In discussions relating to capital projects and how they should be funded, a number of other ideas and issues have been presented, including the following. A. Allocation of Costs Among Members. A number of ideas were expressed about the appropriate allocation of costs among members. These included formulas such as 100% Commission funding (of course Commission funding simply means that costs are spread among member cities), 80% paid by the Commission and 20% paid by the city in which the improvement is constructed, 20% paid by the Commission and 80% paid by the city in which the improvement is constructed, and 100% paid by the individual cities within which the improvement is constructed. It was also suggested that a formula or CLL -231416v1 5 BA295-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 method should be followed that requires those who benefit from an improvement to pay for it or those who are causing the problem necessitating an improvement to pay for it. The legal authority of the Commission is limited. It can finance projects by using a county tax levy or by using the formula set forth in the joint powers agreement. Whether to amend the joint powers agreement is a political question to be addressed by the member cities. The Commission cannot unilaterally change the formula agreed to by the cities and set forth in the joint powers agreement. Therefore, whatever the merits of the various formulas that might be used for allocation of costs, the Commission is not in a position to decide unilaterally to change the formula. B. Voting Power of Member Cities. Concern has been expressed by several people about the fact that each city has only one vote on the Commission although some cities provide substantially more financial support for the Commission's activities. If the member cities are interested in changing the voting procedures, they may do so by unanimous agreement among all member cities. However, again, the Commission does not have the authority to change the appointment process or number of appointees for each city. C. Taxation by Unelected Officials. Several people expressed concern about decisions that have an effect on taxation being made by the Commission, a body that is not elected. The legislature provides for only two kinds of WMOs. Neither a watershed district nor a joint powers watershed management organization is an elected body. The legislature has provided for a number of public bodies that are not elected but have the authority to either levy tax directly or compel other entities to levy taxes. These include watershed districts under chapter 103D, sanitary districts under Minnesota Statutes, Section 115.18 to 115.37, regional sanitary sewer districts under Minnesota Statutes, Section 115.61 to 115.67, regional railroad authorities under Minnesota Statutes, Chapter 398A., regional development commissions under Minnesota Statutes, Section 462.381 to 462.398: port authorities under Minnesota Statutes, Section 469.048 to 469.068, the Metropolitan Council under Minnesota Statutes, Section 473.123 to 473.549, the Metropolitan Airports Commission under sections 473.601 to 473.680, the Middle Mississippi Watershed Management Organization under sections 103B.211 and 103B.241, Emergency Medical Services special taxing districts under sections 144F.01 and CLL -231416v1 6 BA295-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 the Lake Minnetonka Conservation District under Minnesota Statutes, Chapter 103B.601 to 103B.645. It may be that the fact that WMOs are not elected bodies has caused the legislature to provide for such extensive public involvement in the decision making process relating to capital projects. First, for a capital project to be financed with a county levy, it must be included in the CEP. The CEP is a part of the surface water management plan, which is prepared with substantial public involvement and review. For some time, the Commission has conducted open public meetings and open houses, and has formed a citizen advisory committee, a technical advisory committee, and a policy advisory group to assist in development of the plan. Several requests have been made directly to cities for input on specific matters. The public has been notified and given an opportunity to participate in the process of development of the plan. And, of course, every Commission meeting is attended by one or more representatives of each city. All of this public review and comment has occurred before the formal adoption process specified by state law has even begun. Once the Commission has decided it is ready to submit a draft plan for comment and review, the plan must be submitted to cities, counties, the Met Council, state review agencies, the Board of Water and Soil Resources, and Hennepin Conservation District. Those entities have 60 days to review and comment on the draft plan and the Commission is required to respond to concerns expressed by the review agencies within 30 days. Later, the commission is required to hold a public hearing within 30-45 days of the end of the 60 day review period. After the public hearing, the draft plan, any amendments and written comments received, the record of the public hearing and a summary of all changes incorporated as a result of the review process are submitted to the Metropolitan Council, state review agencies and BSWR for final review. After the state review agencies and others have completed this review and changes are incorporated in the plan, BSWR makes a final review of the plan for compliance with the requirements of the surface water management act. That all occurs, before a project is even included in the CIP. If the Commission proposes to finance a project by a county tax levy, the Commission is required to hold an additional public hearing to initiate the county financing. The Commission must forward a copy of the plan for the improvement to the county and conduct a public hearing following notice as required by the CLL -231416v1 B A295-4 Memo to: Bassett Creek WMO Commissioners May 9, 2003 Minnesota Statutes. It should also be noted that the county board has the authority to disapprove funding a project by a county tax levy, although I understand that Hennepin County has not disapproved any such project in the past. In addition to the county hearing process, the joint powers agreement requires a hearing following mailed notice to the clerk of each member city. Even then, a resolution ordering an improvement requires a two-thirds vote of all Commission members, the highest voting requirement allowed by law. Despite all of this openness in the decision-making process and involvement by the public at large and by other agencies, the decision is still made by a non- elected body. However, it is not within the power of the Commission, or for that matter within the power of the member cities, to make the Commission into an elected body. Such a change would require action by the Minnesota Legislature. V CONCLUSION If the Commission decides to undertake capital projects, it must decide how those projects will be funded. Unless there is a change in state law or a change in the joint powers agreement approved by all member cities, there are two basic options available to the Commission. One is to charge member cities under the formula set forth in the joint powers agreement. The other is to charge the county, in which case the county will levy an ad valorem tax on all properties within the watershed. There are two primary differences between these options. The first is that the option chosen will affect how much each individual taxpayer or landowner will pay toward a project. That in turn will depend on whether the Commission sends the bill to the county or to the city. If the bill is sent to the cities, the cost incurred by each landowner or taxpayer would in turn depend on the method or methods used by each city to raise its share of the project costs. The second primary difference between these two options is that the county tax levy is outside of city levies and outside of city levy limits. CLL:sez Attachments (2) CLL -231416v1 8 B A295-4 Barr Engineering Company 4700 West 77th Street • Minneapolis, MN 55435-4803 R Phone: 952-832-2600 •Fax: 952-832-2601 BABAR Minneapolis, MN • Hibbing, MN • Duluth, MN • Ann Arbor, MI • Jefferson City, MO Memorandum To: Steering Committee — Bassett Creek Water Management Commission From: Baa Engineering Company Subject: Summary of Capital Improvement Program Comments Date: March 6, 2003 Project: 23/27-0512003 061 c: Charlie IeFevere On November 1, 2002, seven tables relating to the Proposed Capital Improvements and Non -Structural Programs that will likely be included in the Commission's draft Second Generation Plan were sent to the BCWMC commissioners for presentation to their respective cities for discussion. Comments were due back to the Commission by January 31, 2003. Each city was requested to review and comment on the following. Proposed capital improvement program (CIP), which is summarized in Tables 1, 2, and 3. Tables 2 and 3 will require ongoing Commission action (along with the capital improvements projects). CIP funding options — three cost sharing scenarios are depicted in:.Table 1A. Additional projects that should be added to Table ii. Watershed tax levy options. Minnesota Statute Chapter 103B authorizes the Commission to request the County to levy ad valorem taxes throughout the watershed for capital projects listed in an approved plan. There is some question as to whether this authority is legally effective. The Commission staff is looking into whether this funding mechanism is, in fact, available. There are a few items for the member cities to consider. 1. If it is currently possible for the County, at the request of the Commission, to levy a watershed - wide tax to pay for projects, then the following questions need to be answered: Should the proposed C1P be financed 100% using this levy (Yes or No)? Should the Commission pursue legislation to allow such a levy to also be used to fund the Commission's administrative activities (Yes or No)? ODMA\PCDOCS\DOCS\239209\ 1 To: Steering Committee — Bassett Creek Water Management Commission From: Barr Engineering Cody Subject: Summary of Capital Improvement Program Comments Date: March 6. 2003 Project: 23/27-051 2003 061 c: Charlie LeFevere Page 2 2. If it is not currently possible for the County, at the request of the Commission, to levy a watershed - wide tax, should the Commission pursue legislation that would allow the Commission to use such a levy? on January 8, 2003, Charlie LeFevere submitted a memorandum to the Commission regarding the probability of a County tax levy within the watershed to pay for Commission projects. In summary, Mr. LeFevere reported that the Commission can only certify to the County payment of the costs of projects that are a part of the Commission's approved CIP and no certification can occur until the Commission's watershed management plan and its CIP have been finally approved Additionally, to initiate the County financing, the Commission will need to take the following steps: (1) a copy of the plan for the improvement will need to be forwarded to the County, (2) hold a public hearing following notice as required by the statute, and (3) adopt a resolution with appropriate findings, determining the cost of the improvement and certifying the cost to the County.] Below is a summary of the cities' comments received for your review prior to the March 18th Steering Committee meeting. Crystal Crystal submitted a resolution approving the 80% (City) and 20% (Commission) funding mechanism of the CIP. Crystal did not offer any comments concerning the watershed tax levy options. Golden Valley The city has no concerns or issues related to the proposed 10 -year CIP, but notes that each actual project scope may change once the project is developed beyond a concept level stage. The city supports the 0% Commission funding option and believes that each community should be responsible for funding projects in their own community and assessing the costs to residents as the community sees appropriate. No additional projects to add to Table ii. The city supports the Commission's effort to research opportunities to raise funding for water quality and administrative activities through an authorized taxing authority or through Hennepin County. The city is not interested in relinquishing the member cities' participation in the Commission, or the member cities' right to approve or disapprove Commission projects. To: Steering Committee — Bassen Creek Water Management Commission From: Barr Engineering Company Subject: Summary of Capital Improvement Program Comments Date: March 6, 2003 Project: 23r 7-05 1 2003 061 page 3 e: Charlie LeFevere Medicine Lake The city offered no specific objections or comments to the November 1, 2002 CIP. Minneapolis The city supports the 20% (Commission) and 80% (City) funding scenario. No additional capital improvements are scheduled that would affect the water quality of Bassett Creek aside from Wirth Lake). Table 1 comments: WTH-2: Minneapolis staff believes it would be appropriate for the state Department of Transportation to contribute to the construction of the detention pond along Highway 55 near Wirth Lake (WTH-2) and encourages the Commission to pursue such support. Further, will Wirth Lake improvements remain in the CIP even if the Legislative Commission on Minnesota Resources funding is not available? BC -10 (removed from CIP): Staff is comfortable with the removal of the plan to dredge the pond near the intersection of Wirth Parkway and Plymouth Avenue. However, they note that it is not clear that sedimentation is a problem at this location. Also suspended solids inflow will be reduced by the construction of a stormwater detention pond at Logan Avenue North from 27m Avenue North to 29m Avenue North. Construction of the pond will be complete in the summer of 2003 and city staff will be glad to provide an implementation report on the project to the Commission. Table is Minneapolis staff requests clarification as to how the $50,000 will be spent annually by the Commission on erosion control and sedimentation projects will be allocated. The same question is relevant to long-term maintenance of flood control projects (i.e., will the Commission or city staff initiate such work?). Minneapolis staff would need to see detailed information about the impact on taxpayers before considering the option of financing the CIP entirely through a watershed -wide tax. The city is not in favor of the Commission pursuing legislation to allow a watershed -wide levy to fund Commission administrative activities. The Commission should pursue authority for a watershed -wide tax, levied by the County, only as part of a coalition of watershed organizations. To: Steering Committee — Bassett Geek Water Management Commission From: Barr Engineering Company Subject: Summary of Capital Improvement Program Comments Date: March 6, 2003 Project. 23127-0512003 061 c: Charlie 1tFeve=e Page 4 Minneapolis staff requests clarification concerning the Minneapolis homes recently added to the 100 - year floodplain and if they will be given funding assistance from the Commission for flood proofing or be flood proofed by the Commission? Minnetonka The city accepts the proposed CIP (tables 1, 2, 3, i and iii). The city supports 100% Commission funding of projects. The city favors BCWMC financing of these projects through ad valorem taxing process (pursue BCWMC taxing authority). It would be acceptable to finance BCWMC administrative costs using the ad valorem taxing process. Table ii (Water Quality Practices) should not be included in the CIP or the Second Generation Plan as a BCWMC initiative. Those efforts more respectfully should remain city obligations. Should the Commission decide to include the water quality practices in the Plan, the city recommends that they be listed as 100% city/local funding. New Hope No additional structural projects were recommended at this time. New Hope will continue to implement some nonstructural improvements according to past practice. The city supports the 20% (Commission) and 80% (City) funding mechanism. Those cities creating the water quality issues associated with the project, as well as those cities benefiting from the project should fund the remaining 80%. All maintenance and nonstructural improvements should be funded locally. If the Commission selects the 20/80 cost sharing option, New Hope questioned whether or not credit for construction of past CIP projects would be given. The city supports the option to fund improvements via the Hennepin County levy process. Plymouth Plymouth does not favor 100% financing of the CIP using a watershed -wide Hennepin County levy. Plymouth is not in favor of the Commission pursuing legislation to allow such a levy to be used to fund Commission administrative activities. To: Steering Committee — Bassett Creek Water Management Commission From: Barr Engineering Company Subject: Summary of Capital Improvement Program Comments Date: March 6, 2003 Project: 23/27-0512003 061 c: Charlie L.eFevere Page 5 Plymouth does not favor the Commission pursuing legislation for such a levy if it is not currently allowed. The city is concerned that using these methods of funding capital projects will move the Commission one step closer to functioning as a watershed district type of organization, which the city does not favor. Plymouth believes taxing residents to fund the organization are actions that should be made by elected officials of the city rather than by appointed commissioners. Table ii: requests Commission consideration of the additional projects on Medicine and Parkers lakes at the earliest date possible. Table ii: add a program to clean existing water quality ponds. This would be an ongoing annual program rather than individual projects. It is reasonable to assign some portion of the cost of each project to the BCWMC as a whole, but the majority of the costs should be apportioned based on the contributors to the problem and the benefits gained from the solution. The proposed funding formulas do not appear to accomplish this, especially when designating the non-BCWMC funding responsibility to the city in which the project is located. This will likely require examining several projects individually. The city believes it would be better to build equity into the Joint Powers Agreement by changing the funding formulas than to proceed with an inequitable funding formula. This should extend beyond funding CIP projects to include governance of the watershed. Robbknsdale The city supports the 100% CIP Commission funding option. The city supports the Commission initiating a tax levy for the Bassett Creek watershed capital projects. St. Louis Park The city accepts the proposed CIP (tables 1, 2, 3, i and iii). The city supports 100% Commission funding. Financing of projects should be raised via the ad valorem taxing process pursued through BCWMC taxing authority. The city accepts the concept of financing BCWMC administrative costs using the ad valorem taxing process. 1 To: Steering Committee — Bassett Creek Water Management Commission From: Barr Engineering Company Subject Summary of Capital Improvement Program Comments Date: March 6.2003 Project 23/27-051 2003 061 c: Charlie LeFevere Page 6 Table ii (Water Quality Practices) should not be included in the CIP or the Second Generation Plan as a BCWMC initiative. Those efforts more respectfully should remain city obligations. Should the Commission decide to include these in the Plan, the city provided a list of Water Quality Practices with associated costs to add to Table ii. 470 Pillsbur v Center 200 South Sixth Street Minneapolis NIN ,402 612) 337-9300 telephone 612) 337-9310 fax C H A R T E R E D http://www.kennedv-graven.com CHARLES L. LEFEVERE Attorney at Law Direct Dial (612) 337-9215 email: clefevere@kennedy-graven.com MEMORANDUM March 20, 2003 To: Bassett Creek WMO Commissioners From: Charlie LeFevere Q j Re: Steering Committee Recormnendation on Funding of Capital Projects Costs The second generation plan Steering Committee requested that I provide the Board with a memorandum describing the Committee's recommendation for funding of capital projects in the second generation plan and some of the matters considered by the Committee in making that recommendation. A. Allocation Of Costs Under the Joint Powers Agreement. For purposes of discussion, we have sometimes referred to the "Commission share" and the "city share." It must be kept in mind that under the current joint powers agreement, the Commission share is also paid by the member cities (unless there is a county tax levy). Under the joint powers agreement, charges to member cities for capital projects are allocated on the basis of one of three methods, or formulas. These are: A negotiated allocation agreed to by all affected city members. 2. A formula in which 50% of the project cost is prorated among the members on the basis of land area of that member city within the watershed and 50% of the project cost is allocated on the basis of the net tax capacity of that city within the watershed the "50/50 formula"). The Commission's administrative charges are allocated among cities on this basis. 3. The third formula is a variation on the "50/50 formula." The Commission can increase the proportion of the cost paid by one city if that city receives a benefit that is so disproportionate as to require a modification to the 50/50 formula in a sense of fairness. One of these methods must be used by the Commission to allocate costs among member cities unless there is an amendment to the joint powers agreement. CLL -229081 v1 BA29=-4 Memo to: Bassett Creek WMO Commissioners March 20. 2003 B. Other Allocation Formulas Considered. The Steering Committee considered a number of other formulas including 80% paid by the city in which an improvement is constructed and 20% paid by the Commission (i.e., 200io would be allocated to member cities on the basis of the 50150 formula), 20% individual city and 80% Commission, 100% Commission, 0% Commission, and allocations based on what city contributes to a problem of pollution and what city receives a benefit from a project. Comments from member cities showed that there was some support for each of these formulas. C. Steering Committee Recommendation On Formula For Allocation. A majority of the Steering Committee members recommend that the formula for allocation set forth in the joint powers agreement be used for capital projects. In part, this recommendation is based on the practical fact that the joint powers agreement dictates this formula. A new formula could be specified by an amendment to the joint powers agreement. However, amendment of the agreement would require unanimous consent of all member cities. Given the wide divergence of opinions on alternative formulas, unanimous agreement to a chance does not seem likely. Departing from the formula in the joint powers agreement is not within the authority of the Commission. A decision to use another formula could be made by unanimous agreement of all member cities, but it is not within the authority of the Commission. D. Steering Committee Recommendation On Funding. In the past, the cost of Commission activities has been allocated among cities in accordance with the joint powers agreement formula. Cities can raise money to pay their share of these costs by a city-wide tax levy, a special district tax levy, storm sewer utility charges, and in some cases special assessments. The city-wide tax levies and special storm sewer tax district levies could be subject to levy limits imposed by the legislature. One alternative means of funding that was considered was to seek special legislation, as the Middle Mississippi Watershed Management Organization has done, authorizing the commission to levy a tax directly as an independent taxing authority. There did not seem to be a great deal of interest in seeking such authority from the Legislature. The final alternative considered by the Steering Committee for funding of capital projects was to direct Hennepin County to levy a tax within the watershed in accordance with Minnesota Statutes, Section 103B.251. This method of funding is recommended by a majority of the members of the Steering Committee and appears to be favored by a majority of the member cities. CLL --'2908 I v I BA295-4 Memo to: Bassett Creek WMO Commissioners March 20, 2003 During Steering Committee discussions, a number of advantages of this funding method were identified. These included: 1. The county levy would be outside of city tax levies thereby freeing the member cities to either lower their tax levies or use their levy authority for other public purposes. For cities paying their share of the commission charges by a storm sewer utility charge, charges could be reduced or utility funds could be made available for other city projects. 2. The county ad valorem tax would be deductible by individuals for income tax purposes while utility charges paid to city storm sewer utilities would not. It was suggested that using 100% commission funding and using a county tax levy would reduce city control, make the organization more like a watershed district, or allow taxation by an unelected body. However, the joint powers agreement currently gives the Commission the authority to order a project and charge cities, using the formula in the agreement. City consent is not required. Requiring individual cities to pay a higher share, such as 20% or 80% of the project cost, would not increase city control. If the Commission orders a project under the joint powers agreement, cities are required to pay for it, and will have to raise monies to pay these charges either by ad valorem taxes, special assessments, or storm sewer utility charges. Cities do not control Commission projects or decide whether to fund those projects. To this extent, the Commission is like a watershed district. The difference is that watershed district commissioners are appointed by the county board while joint powers WMO commissioners are appointed by member cities. Additionally, the city has the right to appoint city staff members to the Commission's Technical Advisory Committee. These facts lead to a much greater decree of deference to city input and consideration of city concerns; but individual cities do not have the authority to veto a project or dictate who will pay for it. If Commission projects are paid by county levy, the impact (i.e., what any city or any one citizen or landowner will pay for project expenses) will vary somewhat from the charge imposed under the 50/50 formula of the joint powers agreement. Under the joint powers agreement, the cost allocated to any city is allocated partly on the basis of area within the watershed and partly on the basis of tax capacity, With a county levy, the part of project expenses paid by citizens in any one city would be determined entirely by tax capacity. Additionally, under a county levy, charges against any one propertv would be based entirely on tax capacity. If a project were paid for under the 50/50 formula of the joint powers agreement CLL -22908 l v 1 3 BA295-4 Memo to: Bassett Creek WMO Commissioners March 20, 2003 and charged to cities, each city could pay its share on some basis other than property valuation. For example, neither special assessments nor storm sewer utility charges are based on property valuation. Therefore, the amount paid by the citizens of one city and the amount paid by any one tax payer will vary somewhat if capital project costs are paid for by county tax levy rather than charges against the city under the joint powers agreement 50/50 formula. CLL:sez CLL-229081vl BA295-4 Crystal Golden Valle Medicine Lake Minneapolis Minnetonka New Ho Plymouth Robbinsdal St. Louis Par Table 4 Bassett Creek Water Management Commission DRAFT Water Quality Management and Flood Control 10 -Year Capital Improvements Program Funding Options May 2003 A_ Cost Solit. According to BCWMC Formula (50% Area + 50% Tax Capacity) - Draft 2003-2004 Adjusted Tax Capacity City Share of Project Costs Hope e Percent Difference 2,914 1.67% 54,395 6.45% 4,988 22.67% 26,059 12.83 Total Per Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 174,350 47,043 12,981 17,566 16,727 12,558 12,000 12,517 15,244 12,517 15,197 842,793 227,402 62,750 84,911 80,857 60,706 58,005 60,506 73,688 60,506 S73,463 22,002 5,937 1,638 2,217 2,111 1,585 1,514 1,580 1,924 1,580 1,918 203,155 54,815 15,126 20,468 19,490 14,633 13,982 14,585 17,762 14,585 17,708 165,541 44,666 12,325 16,678 15,882 11,924 11,393 11,885 14,474 11,885 14,430 188,519 50,866 14,036 18,993 18,086 13,579 12,975 13,534 16,483 13,534 16,432 1,582,745 427,055 117,842 159,461 151,847 114,005 108,932 113,629 138,384 113,629 137,961 51,939 14,014 3,867 5,233 4,983 3,741 3,575 3,729 4,541 3,729 4,527 138,396 37,342 10,304 13,943 13,278 9,969 9,525 9,936 12,100 9,936 12,063 909,140 250,870 339,470 323,260 242,700 231,900 241,900 294,600 241,900 293,7001 Crystal Golden Valley Medicine Lake Minneapolis' Minnetonka New Hope Plymoutt Robbinsdaie St. Louis Parl B Cost Solit According to Tax Capacity - Draft 2003-2004 Adiusted Tax Capacity City Share of Project Costs Percent Difference 2,914 1.67% 54,395 6.45% 4,988 22.67% 26,059 12.83 Total Per Year 2005 2006 20071 2008 2009 2010 2011 20121 2013 2014 177,264 47,829 13,198 17,8591 17,006 12,768 12,200 12,726 15,4991 12,726 15,451 788,398 212,725 58,700 79,431 75,638 56,788 54,261 56,601 68,932 56,601 68,721 17,015 4,591 1,267 1,714 1,632 1,226 1,171 1,222 1,488 1,222 1,483 177,096 47,784 13,186 17,842 16,990 12,756 12,189 12,714 15,484 12,714 15,437 180,805 48,785 13,462 18,216 17,346 13,023 12,444 12,980 15,808 12,980 15,7 207,230 55,915 15,429 20,878 19,881 14,927 14,2621 14,878 18,119 14,878 18,063 i $1,589,748 428,945 118,364 160,167 152,519 114,509 109,414 114,132 138,996 114,132 138,572 I $57,085 15,403 4,2501 5,7511 5,477 4,112 3,929 4,0981 4,991 4,098 4,976 174,798 47,164 13,0151 17,6111 16,770 12,591 12,030 12,5491 15,283 12,549 15,236 909,140 250,8701 339,470 3239260 242,700 231,900 2411,9001 294,600 241,900 293,7 Crystal Golden Valley Medicine Lake Minneapolis Minnetonka New Hope Plymouth Robbinsdale St. Louis Par$ c enst cnn_ city pays fer 100'x, of Prosect Costs when Prolect is Located in the City City Share of Project Costs Percent Difference 2,914 1.67% 54,395 6.45% 4,988 22.67% 26,059 12.83 Total Per Year 2005 2006 20CY71 2006 2009 2010 2011 2012 2013 2014 0 0 0 0 0 0 0 0 0 0 0 504,800 161,200 75,600 215,300 0 0 0 0 52,700 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 174,200 0 0 0 0 0 0 0 0 0 174,200 215,400 0 141,100 0 0 0 0 0 01 0 74,300, 1,931,240 747,940 34,1701 124,170 243,260 10,800 0 241,900 241,900 241,900 45,200 80,000 0 0 0 80,000 0 0 0 0 0 463,800 0 0 0 0 231500 231,900 0 0 0 909,1401 250,8701 339,470 3239260 242,700 231,900 00 $241,9 294,60OF 241,900 293,7 Crystal Golden Valley Medicine Lake Minneapolis Minnetonka New Hope Plymouth Robbinsdaie St. Louis Park D. Cost Difference Between Table B and Table A Dollar Difference Percent Difference 2,914 1.67% 54,395 6.45% 4,988 22.67% 26,059 12.83 15,264 9.22% 18,711 9.93% 7,003 0.44% 5,146 9.91 36,403 26.30% Minneapolis computations based on 2002-2003 adjusted tax capacity P:\23\27\051\plan\CIP Funding Options I EP Barr Engineering Company 4700 West 77th Street • Minneapolis, MN 55435-4803 Phone: 952-832-2600 • Fax: 952-832-2601 Minneapolis, MN • Hibbing, MN • Duluth, MN • Ann Arbor, MI • Jefferson City, MO Memorandum To: Bassett Creek Water Management Commission From: Barr Engineering Company Subject: Capital Improvement Plan — Assessment per Residential Unit Date: April 4, 2003 Project: 23/27 0512003 060 In accordance to the Commission direction during the March 2003 meeting, we have prepared an estimate of the cost per residential unit for several proposed capital improvement plan (CIP) assessments. Total CIP Residential CIP Crystal (2) Assessment Per Assessment Assessment (1) Total Residential Units (2) Individually Owned Parcels Residential Unit 275,000(3) 123,750 32,750 3.78 Avtt".7—. 9 h h is " f 1) Residential assessment = 45% of total assessment. 2) Residential units include homes, condominiums and townhouses. Residential units do not include apartments. 3) Average estimated project cost 2006-2014. The following table provides the basis for determining total residential units: Community No. of Individually Owned Residential Units 3 Crystal (2) 3,010 Golden Valley (1) 7,450 Medicine Lake (1) 150 Minneapolis (2) 4,700 Minnetonka (1) 910 New Hope (1) 2,400 Plymouth (1) 11,640 Robbinsdale (2) 1,300 St. Louis Park (1) 1,190 TOTAL 32,750 1) Parcel numbers obtained from Hennepin County. 2) Parcel numbers estimated. 3) Residential units include homes, condominiums and townhouses. Residential units do not include apartments. ODMA\PCDOCS\DO CS\2? 39676\ 1 Barr Engineering Company 4700 West 77th Street • Minneapolis, MN 55435-4803 Phone: 952-832-2600 • Fax: 952-832-2601 Minneapolis, MN • Hibbing, MN • Duluth, MN • Ann Arbor, MI • Jefferson City, MO Memorandum To: Bassett Creek Water Management Commission From: Barr Engineering Company Subject: Capital Improvement Plan — Annual Assessment per Property Types Date: May 12, 2003 Project: 23/27 051 2003 060 In accordance to the Commission direction during the March 2003 meeting, we have prepared an estimate of the cost per residential unit for several proposed capital improvement plan (CIP) assessments. TABLE 1 ANNUAL ASSESSMENT PER PROPERTY TYPE PROPOSED CIP ASSESSMENT Total CIP Assessment 275,000 1 CIP Assessment CIP Assessment (2) Total Property Units (3) Parcels Annual Assessment Per Unit Residential 45% 123,750 32,750 3.78 Apartment 5% 13,750 202 68.07 Commercial 30% 82,500 598 137.96 Industrial 20% 55,000 457 120.35 Total 100% 275,000 34,007 1) Average estimated project cost 2006-2014. 2) CIP Assessment = ($275,000)(percent), Example: Residential assessment = 45% of $275,000 3) Total property units from Table 2 0DMA\PCD0CS\D0CS\239676\2 The following table provides the basis for determining total property units: TABLE 2 TOTAL PROPERTY PARCELS 1) Parcel numbers obtained from Hennepin County. 2) Parcel numbers estimated. 3) Residential units include homes, condominiums and townhouses. Residential units do not include apartments. 4) No. of apartment properties or complexes (not number of apartment living units) 5) Commercial business (not commercial zoned land) 6) Industrial business (not industrial zoned land) ODMA\PCDOCS\DOCS\239676\2 Agenda Number TO: Dwight D. Johnson, City Manager FROM: Laurie Ahrens, Assistant City Manager/` SUBJECT: Set Future Study Sessions DATE: June 12, 2003, for Council study session of June 16, 2003 1. ACTION REQUESTED: Review the pending study session topics list and, if desired, establish future special meetings or amend the topics list. 2. BACKGROUND: Attached is the list of pending study session topics, as well as calendars to assist in scheduling. Pending Study Session Topics at least 3 Council members have approved the following study items on the list) Pond and Drainage Issues (late summer) Speed tubes used for speed studies Council Tour of Hennepin County Workhouse (fall) Other requests for study session topics: Recycling Program — future program initiatives (requested by EQC; after legislative session) Administrative fines OFFICIAL CITY MEETINGS Tune 2003 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8:00 AM TOUR 7:00 PM 7:00 PM HUMAN OF ZACHARY WATER TREATMENT PLANNING COMMISSION, Council Chambers RIGHTS COMMISSION - Council Chambers PLANT, 4425 Zachary Lane 8 9 10 11 12 13 14 7:30 PM YOUTH ADVISORY COUNCIL, Council Chambers 5:30 PM SPECIAL COUNCIL MEETING:DISCUSS IVES/JONQUIL LANE DRAINAGE ISSUES, Public Safety Training Room 7:00 PM EVIRONMENTAL QUALITY COMMITTEE EQC), Plymouth Creek Center 7:00 PM PARK & REC ADVISORY COMMISSION PRAC), Council Chambers Flag Day 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 15 16 17 18 19 20 21 7:00 PM PLANNING COMMISSION, Council Chambers 8:00 PM -8:30 PM FIRE DEPARTMENT FAMILY NIGHT, Fire Stafion 111, 3300 Dunkirk Lane 7:00 PM HOUSING & REDEVELOPMENT AUTHORITY (HRA), Medicine Lake Room 7:00 PM SPECIAL COUNCIL MEETING: DISCUSS BASSETT CREEK WATER MANAGEMENT ORGANIZATION; CO. RD. 73 & POSSIBLE TRANSIT GRANT, Council Chambers Cloud Civic CenterLEAGUEOFMINNESOTACITIESANNUALCONFERENCE, St. 22 23 24 25 26 27 28 7:30 PM YOUTH ADVISORY COUNCIL, Council Chambers 5:30 PM SPECIAL COUNCIL MEETING: MEET WITH MET COUNCIL REP; DISCUSS 2002 AUDITED FINANCIAL STATEMENTS, Public Safety Training Room 7:00 PM PLYMOUTH ADVISORY COMMITTEE ON TRANSIT (PACT) - Medicine Lake Room 9:15 AM MUSIC IN PLYMOUTH 5k RUN 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 29 2:00 PM -4:00 PM MILLENNIUM GARDEN RIBBON -CUTTING CEREMONY, Plymouth Creek Center 30 Ju12003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 May 2003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 13 14 15 16 17 18 19 18 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 28 29 30 31 27 28 29 30 31 modified on 6/12/2003 OFFICIAL CITY MEETINGS AN 2003 Sunday I Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 Jun 2003 S M T W T F S 5:15 PM MUSIC INDEPENDENCE IN PLYMOUTH, DAY - City 1 2 3 4 5 6 7 Hilde Offices Closed 8 9 10 11 12 13 14 Performance 15 16 17 18 19 20 21 Center 22 23 24 25 26 27 28 29 30 6 7 8 9 10 11 12 7:00 PM REGULAR COUNCIL 7:00 PM EVIRONMENTAL QUALITY COMMITTEE (EQC), 7:00 PM PARK & REC ADVISORY COMMISSION MEETING, Council Plymouth Creek PRAC), Council Chambers Center Chambers 7:00 PM PLANNING COMMISSION, Council Chambers 13 14 15 16 17 18 19 7:30 PM YOUTH ADVISORY 7:00 PM HOUSING & REDEVELOPMENT AUTHORITY (HRA), COUNCIL, Council Medicine Lake Room Chambers 20 21 22 23 24 25 26 11:45 AM PLYMOUTH-MTKA BUSINESS COUNCIL, 7:00 PM PLANNING COMMISSION, Council BORN Conference Room, Chambers 701 Carlson Parkway, 4th floor 7:00 PM PLYMOUTH ADVISORY COMMITTEE ON TRANSIT (PACT) - 7:00 PM REGULAR Medicine Lake Room COUNCIL MEETING, Council Chambers 27 28 29 30 31 Aug 2003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 modified on 6/12/2003 OFFICIAL CITY MEETINGS August 2003 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sep 2003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2Ju12003 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3 4 5 5:30 PM NATIONAL NIGHT OUT 6 7:00 PM PLANNING COMMISSION, Council Chambers 7 8 9 10 11 7:30 PM YOUTH ADVISORY COUNCIL, Council Chambers 12 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 13 7:00 PM EVIRONMENTAL QUALITY COMMITTEE EQC), Plymouth Creek Center 14 7:00 PM HUMAN RIGHTS COMMISSION, Medicine Lake Room 7:00 PM PARK 8 REC ADVISORY COMMISSION (PRAC), Council Chambers 15 16 17 18 19 20 7:00 PM PLANNING COMMISSION, Council Chambers 21 7:00 PM HOUSING 8 REDEVELOPMENT AUTHORITY (HRA), Medicine Lake Room 22 23 24 25 26 7:00 PM REGULAR COUNCIL MEETING, Council Chambers 27 7:00 PM PLYMOUTH ADVISORY COMMITTEE ON TRANSIT (PACT) - Medicine Lake Room 28 29 30 31 modified on 6/12/2003