HomeMy WebLinkAbout2012-06-05_WORK SESSIONCity of Edina
Street Reconstruction Finance Study
City Council Work Session
June 5, 2012
NORTHLAND SECURITIES
Member FINRA and SIPC
The information presented at this meeting is intended solely for financial planning purposes. Northland Securities is not providing advice on the timing,
terms, structure or similar matters related to a specific bond issue.
1
• Explain study approach
• Explain funding alternatives
• Offer observations from work to date
• Answer questions and obtain guidance from Council
members
• Determine next steps
z
• NOT proposing immediate changes in policy
— Use current project data solely to provide
meaningful analysis
• Focus on assessments and overall cost to City
— Additional work needed to create plan to best
manage additional City costs
• No "right" answer /best practice
,, Approach based on Edina considerations
• Actual data for 2011 projects to be assessed in
2012
— Do not include final contractor payment
• Existing methodology for calculating costs to
be assessed
• Estimated annual assessment is average
o u nt
;ity assesses with equal annual principal
4
• Reduction in amount assessed from current =
increase in City cost
• Assume all additional City cost paid with
bonds
— Annual City cost =debt service
5
Other
827,387
5%
Storm Sewer
3,079,330
19%
Total Project Costs (2011/12)
Sanitary Sewer
1,799,228
11%
Water Main
3,199,512
20%
Total Cost
$16,125,905
Street (assessed)
6,325,227
39%
Street (state aid)
895,221
6%
FA
J
Other City Funds
9,800,678
61%
Total Project Costs (2011/12)
Assessed
6,325,227
39%
J
• Significant share of current funding not
assessed
• Costs not assessed borne by municipal utilities
and road state aid
• Additional "City" costs likely require property
tax levy
S
Actual street construction cost
+ Miscellaneous (design., inspection, supplies)
+ Publication
+ Finance expense
+ LaborCOSt (City Staff)
= Total costs assessed
+ 100% of sanitary sewer service line
E
• Assessments spread on "unit" basis
• Basic unit =lot /parcel
• Assessment =Total costs assessed /total units
• Payment overtime
— 10 years
— Equal annual principal
nterest on balance
nterest rate 2% over bond rate
0t
• Minnehaha Blvd Neighborhood Improvements
• Golf Terrace Neighborhood Improvements
• W. 70th Street Improvements
• Carson's Hill Neighborhood Improvements
• Killarney Shores Neighborhood Improvements
• McCauley Heights Improvements
• Oscar Roberts Neighborhood Improvements
' "' 44th Street Improvements
ge Road Improvements
11
Costs 2,003,496 11260,236 435,310 1,140,363 472,281
Assessed
Units 192.00 91.00 137.90 161.00 77.00
Assess 10,435 13,849 3,157 7,083 6,134
Per Unit
Average 1,271 1,686 384 862 747
Annual
144,138 358,059 235,109 276,235
26.20 81.00 107.57 24.67
5,501 4,420 2,186 11,197
670 538 266 1,363
f%
16.1000
141000
121000
10,000
8,000
6,000
41000
21000
0
Minnehaha
McCauley
Assessil_
. .........
■ Golf Terrace 70th Street
Oscar Roberts 44th Street
Carson's Hill
Ridge Road
Ir Killarney
• Assess less than 100% of street costs
— Not apply to State Aid projects
—Only assess 20% under current policy
• Cap /Set maximum assessment
• Flat rate for all projects
• Assess share of total project costs
'y terms of existing assessments
14
• 7 options analyzed and
presented
1) 80% of Street costs
assessed
2) 50% of Street costs
assessed
3) 20% of Street costs
assessed
Maximum assessment -
$9,000 /unit
5) - Flat $7,000 per unit
6) 25% of Total Project
costs assessed
7) Current with 15 year
term and 1% interest
mark -up
• Details of analysis at
end of handout (pages
29-35)
15
Current
101435
13,849
3,157
7,083
6,134
5,501
4,420
2,186
11,197
80% of Street
8,348
11,079
3,157
5,666
4,907
4,401
3,536
2,186
8,958
50% of Street
5,217
6,924
3,157
3,541
3,067
2,751
2,210
2,186
5,599
20% of Street
2,087
2,770
3,157
1,417
1,227
1,100
884
2,186
2,239
Maximum
$9,000
9,000
9,000
3,157
7,083
6,134
5,501
4,420
2,186
9,000
Flat $7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
25% of Total
5,928
6,778
5,325
2,804
3,049
2,072
1,975
4,375
6,937
Modified
Terms
10,435
13,849
3,157
7,083
6,134
5,501
4,420
2,186
11,197
16
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Current 80% of Street 50% of Street 20% of Street Maximum Flat $7,000 25% of Total Modified
$9,000 Terms
Minnehaha E Golf Terrace 70th Street Carson's Hill Killarney
McCauley Oscar Roberts 44th Street Ridge Road
Avera
1,271
1,686
384
862
Annual
670
Payrne
266
1,363
80% of Street
1,016
1,349
NY
690
597
536
431
a
1,091
50% of Street
635
843
384
431 '
nt
335
269
266
682
20% of Street
254
337
384
172
149
134
108
266
�.
i
$9,000um
A,
hi��
384
862
747
Current
1,271
1,686
384
862
747
670
538
266
1,363
80% of Street
1,016
1,349
384
690
597
536
431
266
1,091
50% of Street
635
843
384
431 '
373
335
269
266
682
20% of Street
254
337
384
172
149
134
108
266
273
$9,000um
1,096
1,096
384
862
747
670
538
266
1,096
Flat $7,000
852
852
852
852
852
852
852
852
852
25% of Total
686
784
616
324
353
240
229
506
803
Modified
906
1,202
274
615
533
478
384
190
972
Terms
4:j
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Current 80% of Street 50% of Street 20% of Street Maximum Flat $7,000 25% of Total Modified
$9,000 Terms
Minnehaha
McCauley
Golf Terrace 70th Street
Oscar Roberts 44th Street
Carson's Hill
Ridge Road
Killarney
1 3 5 7 9 11 13 15
a. Current
X10 YR / Level
Annual / +1%
Current @ 15
YR
X15 YR / Level
Annual /
+1 %2
Current
Modified
Current @ 15
Modified
1,600
Amount
$10,000
$10,000
$10,000
$10,000
Interest Rate
3.75%
2.75%
4.50%
3.50%
1,400
Term
10
10
15
15
Year
1,200
1
1,375
1,157
1,117
868
1,000
2
1,338
1,157
1,087
868
3
1,300
1,157
1,057
868
800
4
1,263
1,157
1,027
868
5
1,225
1,157
997
868
600
6
1,188
1,157
967
868
7
1,150
1,157
937
868
400
8
1,113
1,157
907
868
9
1,075
1,157
877
868
200
10
1,038
1,157
847
868
11
817
868
0
12
787
868
13
757
868
14
727
868
15
697
868
1 3 5 7 9 11 13 15
a. Current
X10 YR / Level
Annual / +1%
Current @ 15
YR
X15 YR / Level
Annual /
+1 %2
80% of Street
400,699
25211047
0
228,073
94,456
28,828
71,612
0.
55,247
1,130,961
50% of Street
1,001,748
630,118
0
570,181
236,140
72,069
179,029
0
138,118
2,827,404
20% of Street
1,602,797
1,008,189
0
912,290
377,824
115,310
286,447
0
220,988
4,523,846
Maximum
$9,000
275,496
441,236
0
0
0
0
0
0
54,205
770,938
Flat $7,000
659,496
6231236
(529,990)
13,363
(66,719)
(39,262)
(208,941)
(517,881)
103,545
36,847
25% of Total
865,365
643,448
(299,048)
688,967
237,523
89,848
198,086
(235,539)
105,101
2,293,751
Modified
Terms
0
0
0
0
0
0
0
0
0
0
21
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
�ee'� �ee'� teems 00 tp
o� o� o �
�a
a�
OO O o
�e�
B <
22
80% of Street
44,027
27,694
0
25,060
10,378
3,167
7,868
0
6,070
124,265
50 % "of Street
110,067
69,234
0
62,649
25,946
7,919
19,671
0
15,176
310,662
20% of Street
176;108
110,775
0
100,238
41,514
12,670
31,473
0
24,281
497,059
Maximum
$9,000
30,270
48,481
0
0
0
0
0
0
5,956
84,707
Flat $7,000
72,462
68,478
(58,233)
1,468
(7,331)
(4,314) -
(22,958)
(56,902)
11,377
4,049
25% of Total
90,146
67,029
(31,152)
71,771
24,743
9,360
20,635
(24,536)
10,948
238,943
Modified
Terms
0
0
0
0
0
0
0
0
0
0
23
600, 000
Maximum
• Additional costs are cumulative
—Only one year shown
— New costs added each year
• Have not yet evaluated means of managing
additional costs
25
ahawwv,non-,�
• Lower percent assessed reduces all regardless
of "need"
• Maximum limit targets largest assessments
• Flat rate has most variation from current
policy
— Easier to administer
— Could "tier" based on lot size
• Changing terms of current policy makes more
affordable without additional City cost
26
• Questions and clarifications
• Policy considerations
—What seek to achieve by change in policy?
• Other options
• Additional analysis
—What information is needed for decision making?
Kt steps
27
• Recap key outcomes and next steps
Assess
Per Unit
8,348
11,079
3,157
Annual
Payment
1,016.45
1,348.99
384.37
Add. $ to
400,699
252,047
0
City
Annual
Debt Levy
44,027
27,694
0
5,666
4,907
4,401
3,536
689.95
597.46
535.89
430.59
228,073 94,456
25,060 10,378
28,828 71,612
3,167 7,868
2,186 8,958
266.13 1,090.71
0 55,247
0 6,070
`•4:]
Assess
5,217
6.,924
3,157
3,541
31067
2,751
2,210
2,186
5,599
Per Unit
Annual
635.28
843.12
384.37
431.22
373.41
334.93
269.12
266.13
681.69
Payment
Add. $ to
1,001,7._48.
6301118
0
570,181
236,140
72,069
179,029
0
138,118
City
Annual
Debt Levy
110,067
69,234
0
62,649
25,946
7,919
19,671
0
15,176
30
Assess
2,087
2,770
Per Unit
Annual
254.11
337.25
Payment
Add. $ to
City
1,602,797
1,008,189
Annual
Debt Levy
176,108
110,775
3,157 1,417 1,227 1,100 :884
384.37 172.49 149.36 133.97 107.65
9
912,290 377,824 115,310 286,447
2,186
266.13
0
100,238 41,514 12,670 31,473 . 0
2,239
272.68
220,988
24,281
31
Assess
Per Unit
9,000
9,000
3,157
7,083
6,134
Annual
Payment
1,095.85
1,095.85
384.37
862.44
746.82
Add. $ to
275,496
441,236
0
0
0
City
Annual
Debt Levy
30,270
48,481
0
0
0
5,501 4,420 2,186 9,000
669.86 538.24 266.13 1,095.85
0 0 0 54,20S
0 0 0 5,956
32
Assess
Per Unit
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
7,000
Annual
Payment
852.33
852.33
852.33
852.33
852.33
852.33
852.33
852.33
852.33
Add. $ to
City
659,496
623,236
(529,990)
13,363
(66,719)
(39,262)
. (208;941)
(517,881)
103,545
Annual
Debt Levy
72,462
68,478
(58,233)
1,468
(7,331)
(4,314)
(22,958)
(56,902)
11,377
33
Assess
Per Unit
5,928 _
6,778
5,325
2,804
3,049
2,072
1,975
4,375
6,937
Annual
Payment
686.08
784.47
616.35
324.50
352.87
239.83
228.58
506.39
802.88
Add. $ to
City
865,365
643,448
(299,048)
688,967
237,523
89,848
198086
(235,539)
105,101
Annual
Debt Levy
90,146
67,029
(31,152)
71,771
24,743
9,360
20,635 -
(24,536).
10,948
34
Assess
Per Unit
Annual
Payment
Add. $ to
City
Annual
Debt Levy
10,435
13,849
3,157
7,083
6,134
5,501
41420
2,186
11,197
906.01
1,202.42
274.08
614.98
532.54
477.66
383.81
189.77
972.20
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
35
PURPOSE
EDINA PUBLIC ART COMMITTEE GUIDELINES 12012
EDINA PUBLIC ART COMMITTEE
GUIDELINES
The purpose of the Edina Public Art Committee is to promote and enhance the aesthetic
quality of life in Edina through the enjoyment of art in the City's public spaces.
All City of Edina sponsored public art projects shall require City Council approval.
GOALS AND DUTIES OF THE EDINA PUBLIC ART COMMITTEE
• Serve in an advisory capacity to the City of Edina in all public art- related matters.
• Oversee installation of City of Edina - approved projects.
• Build awareness and pride in community heritage and neighborhood identity.
• Promote public education in the visual arts.
• Encourage cooperation among public and private sectors, city government and
the arts community.
• Make recommendations for creative fund - raising mechanisms to fund public art
displays.
• Promote economic development through the arts.
• As a subcommittee of the Edina Art Center board, coordinate with the Art Center
on all programs and initiatives.
DEFINITIONS OF TERMS
Art - A visual, two or three dimensional creation including but not limited to sculpture,
painting, murals, mosaics, glass works, photography, and crafts in clay, fiber, textiles,
wood, metal, or a combination of forms considered mixed media.
Public Places - All privately or publicly owned spaces (indoors or outdoors) which are
accessible to the public.
Public Art -Art in public places. Public art may possess functional as well as aesthetic
qualities and may include both permanent and temporary works.
1 The Edina Public Art Committee is a committee of the Edina Art Center Board
EDINA PUBLIC ART COMMITTEE GUIDELINES 12012
COMPOSITION AND STRUCTURE OF THE EDINA PUBLIC ART COMMITTEE
The Edina Public Art Committee (EPAC) shall be a standing committee of the Edina Art
Center Board. The Edina Art Center Board shall appoint the members of EPAC which will
consist of a minimum of seven persons ideally including:
• One professional artist representative.
• One Edina Community Foundation representative.
• One member of the Edina Art Center Board.
• One community member with an interest in the arts.
• One staff liaison from the Edina Art Center (staff will not have voting privileges).
• One person may fulfill more that one of these requirements.
When at all possible, the Chair of EPAC shall be a board member of the Edina Art Center
and act as liaison to the Art Center.
EPAC members shall receive no compensation for their services.
EPAC members shall be members of the Edina Art Center.
FUNDING PROCEDURES
The Edina Public Art Committee may receive private and corporate donations on behalf
of the City.
The Edina City Council must approve all donations made to the City of Edina.
Donations may be given directly to the City of Edina or the Edina Community
Foundation specifically for the Public Art Committee (EPAC). Donations to the City of
Edina become part of the public record. Donors may remain anonymous when a
donation is made to the Edina Community Foundation.
The City may periodically allocate funds as requested by EPAC and authorized by the
City Council.
The City receives Edina resident donations through an insert in the quarterly utility bill
which includes a provision for adding one, five, or ten or more (as determined by the
individual) dollars to the actual dollar amount of the bill.
The Edina Art Center shall initiate and oversee one fund - raising activity per year which
benefits both the Art Center and the Edina Public Art Committee.
Other fund - raising methods may be considered and approved at any time.
2 1 The Edina Public Art Committee is a committee of the Edina Art Center Board
EDINA PUBLIC ART COMMITTEE GUIDELINES 12012
SITE SELECTION FOR PUBLIC WORKS OF ART
The site may be public or private property and should be situated in such a way that it is
visible and accessible to the greatest possible number of members of the community.
The following items shall be considerations in site selection:
• Artwork should not unnecessarily disrupt the flow of pedestrian or
vehicular traffic
• Potential obstruction of growing trees /shrubs or future construction shall
be taken into account
See separate item of relocation of artwork under Gifts, Loans, Commissions and
Purchases.
CRITERIA FOR SELECTION OF ARTWORK
The Edina Public Art Committee shall consider, but not be bound by any one of, the
following guidelines in choosing works to recommend to the Edina City Council for
approval:
• Does the artwork represent excellence in design of public art?
• Does the artwork represent workmanship of the highest quality?
• Does it raise awareness of community heritage or have historical value?
• Does the piece appeal to a broad range of people?
• Does the piece relate to the unique identity of the City?
• Is the artwork true to the original goals of the project?
• Is it appropriate for public display?
• Is it original, compelling and creative work?
• Is the piece safe for public interaction?
• Is the piece durable under year -round weather conditions, if an outdoor piece?
• What is the likely maintenance requirement?
CRITERIA AND PROCEDURES FOR ARTIST SELECTION
Artists chosen by EPAC shall be active artists who are recognized in their field either
locally, regionally, nationally or internationally. The body of work, exhibits and shows,
awards and sales history of artist candidates shall be considered.
Artists may be contacted by the following methods:
• Open Competition -
3 1 The Edina Public Art Committee is a committee a the Edina Art Center Board
EDINA PUBLIC ART COMMITTEE GUIDELINES 12012
An open competition for public art projects will be advertised in the local media,
arts media, or local, regional and national arts organizations.
• Limited Competition -
Selected artists may be invited by EPAC to submit an RFQ, Request for
Qualifications, for the creation of public art pieces.
EPAC shall act as a jury and review and evaluate all submissions. Additional members of
the jury panel may be appointed from the community at the discretion of the
committee. When appropriate, a limited number of finalists from the pool of
submissions shall be chosen to interview. EPAC's final selection will be submitted to the
City Council for approval.
CONTRACTING WITH ARTISTS
Upon completion of the art/artist selection process for a purchase, loan, or gift, the
Edina Public Art Committee shall enter into a contractual agreement with the artist. The
contract shall be signed by the artist before the work is installed. The contract may
contain the following stipulations:
• The art is original and does not infringe on any copyright.
• The execution and fabrication of the art will be performed in a professional and
timely manner.
• The art will be free of defects in material and craftsmanship.
• In the case of a loaned piece of art, the artist will be responsible for installing
and insuring the work.
• In the case of a purchased piece of art, the rights with respect to the work that
the City shall acquire (e.g., copyright etc.) shall be specified.
• A method and schedule of payment to the artist.
• Final payment will be made only after review and acceptance by the City.
• Conditions may warrant the removal or relocation of a piece. (See
"Deaccessions" Below).
• For Open Competition sculpture selections, the artist agrees by signed contract
to leave the artwork on the EPAC selected site for the duration of the display
period of twelve months, May of said year through May of the following year.
• For Open Competition sculpture selections, the artist shall be paid a stipend of
$500 if selected by the EPAC jury panel for the sculpture loan. The payment is
specified in the Art Work Loan Agreement.
• If an offer to purchase artwork is made by an individual during the annual display
period, the buyer will approach EPAC, the City of Edina and the artist to make
arrangements for purchase.
• The City of Edina, the Edina Art Center and the Edina Public Art Committee will
make every attempt to accommodate a sale of artwork. However, approval by
4 1 The Edina Public Art Committee is a committee of the Edina Art Center Board
EDINA PUBLIC ART COMMITTEE GUIDELINES 12012
the Edina Public Art Committee is needed for early removal of the artwork as the
stipend is paid for a display period of one year.
• Every consideration will be made by all parties in regards to a prompt response
in the process of year -end gifting for tax purposes.
GIFTS, LOANS, AND COMMISSIONS AND PURCHASES
The City of Edina will seek the advice of the Edina Public Art Committee on the
appropriateness of all public art gifts and purchases that are intended to be
permanently placed on City of Edina -owned public property.
Gifts, loans and purchases of public art intended to be placed temporarily on City of
Edina -owned public property may be accepted by the City of Edina only if deemed
appropriate by the Edina Public Art Committee.
DONATIONS AND MEMORIALS
The Edina Public Art Committee will work in conjunction with the buyer or donor, Edina
Art Center and the City of Edina on plaques and plaque placement. The City of Edina
Donations /Memorial Policy of June 20, 2000 will prevail.
PUBLICITY AND PRESS
The Edina Public Art Committee will publicly acknowledge all gifts of public arts and
donations that make public art possible in our community.
The Public Art Committee will work with Art Center, Parks & Recreation Department and
Communications & Technology Services Department staff to ensure the gifts and
donations are recognized in an appropriate manner. Such recognition may be in the
form of a formal letter of acknowledgement, press release, website or social media
content, plaques on or near the artwork and /or recognition at public meetings or
gatherings. Donations may also be given anonymously with no credit given if the
donation is made through the Edina Community Foundation.
INSTALLATION
Installation of public art in the City of Edina will be coordinated by the artist and the City
of Edina staff and the Edina Public Art Committee. All installations shall be supervised by
City of Edina staff and at least one Public Art Committee member.
5 The Edina Public Art Committee is a committee of the Edina Art Center Board
EDINA PUBLIC ART COMMITTEE GUIDELINES 12012
DEACCESSION
The deaccession of a piece of public art should be a deliberate and seldom -used
procedure. Works should not be disposed of simply because they are not currently in
fashion or because their worth is called in to question by a few individuals.
The following conditions are to be considered before any deaccession:
• The City Council determines that the site is needed for another public use
• The work has deteriorated beyond a reasonable means of conservation
• The authenticity of the piece has been determined to be false or fraudulent
• The artwork possesses faults of design or fabrication that challenge its artistic
merit
In the event of deaccession:
If appropriate, the artist shall be given the first option to purchase
If not purchased by the artist, the work may be sold through auction, gallery
resale or direct bid by and individual or donated to another appropriate entity,
i.e. museum, school etc. Proceeds from the sale are to be used for future public
art projects.
• If none of the above options are viable, the work may have to be destroyed.
The recommendation to dispose of a work should be made by EPAC after careful review
(which may include the services of a professional conservator) and a majority vote of
the committee. Final decision for deaccession will be granted by the City Council.
MAINTENANCE
Permanent public works of art shall be maintained and preserved by the City of Edina in
the best possible condition by regular inspection and cleaning. Repair may be necessary
when the work needs to be returned to its original condition and integrity in the event
of neglect, aging, damage or vandalism.
Works of art selected through the annual competition will be maintained by the artist.
The artist will be notified by members of EPAC or City staff in the event of any
maintenance required, damage or vandalism.
PUBLIC EDUCATION AND COMMUNITY OUTREACH
Informing the public about a work of art is crucial to the success and public acceptance
of the piece. When at all possible, the community should participate in the public art
process.
The Edina Public Art Committee is a committee of the Edina Art Center Board
EDINA PUBLIC ART COMMITTEE GUIDELINES
1 2012
The following activities may encourage the public's awareness and involvement
• Presentations about the artwork to community groups, government agencies,
citizen committees, local businesses and corporate service groups.
• Inclusion of community residents on the jury panel in the art/artist selection
process.
• Site visits by citizen representatives.
• Community = initiated neighborhood gateway projects.
• Extensive media coverage.
• School education programs which will incorporate visual and writtenL materials
about public art in general and the importance of the public artwork in our
community:
Revised March 2012