CR 10-132 Adoption of Resolution 2010-080, Authorizing the Approval of Amendment 1 to Hen Cty Municipal Recycling Grant Agreement 2008-2010, Extending Duration of Agreement thru 12/31/2011GITY OF
Id
• December 1, 2010 HOPKINS Council Report 2010-132
ADOPTION OF RESOLUTION 2010-080
AUTHORIZING THE APPROVAL OF AMENDMENT 1
TO THE HENNEPIN COUNTY MUNICIPAL RECYCLING GRANT AGREEMENT 2008-2010
EXTENDING THE DURATION OF AGREEMENT THROUGH 12/31/2011
Proposed Action.
Staff recommends adoption of the following motion: "Move to Adopt Resolution No. 2010-080
Authorizing the Approval of Amendment 1 to the Hennepin County Recycling Grant Agreement 2008-
2010 which will extend the duration of the Agreement through 12/31/2011."
Overview.
In February of 2008 the City approved the 2008-2010 Residential Grant Agreement with Hennepin
County. This grant agreement allows us to receive funds to support our curbside residential recycling
programs. In order to receive these grant funds again in 2011, the City must adopt a resolution to
approve Amendment 1 that will extend the length of the Grant Agreement for one year changing the
expiration date to 12/31/2011. Amendment 1 also requires the same annual report be filed for the
additional year.
• Primary Issues to Consider
• Is adoption of Resolution 2010-080 in the best interest of the City of Hopkins?
Council has already approved prior resolutions, which authorized submittal of a grant application for
years 1995-2010. Approval of Amendment 1 will allow us to continue to receive funding from
Hennepin County through 2011 for our recycling programs. Each municipality will receive SCORE
(Select Committee on Recycling and Environment) funds proportional to the number of eligible
residential housing units in its curbside collection program on January 1 of each funding year relative
to the total number of eligible residential housing units in the county that are served by curbside
recycling service. Hopkins received $25,195.00 in SCORE funds for recyclables collected in 2009.
SCORE Funds are based on revenue received by the State of Minnesota from a sales tax on
garbage collection and disposal fees. In the event that SCORE funds are eliminated from the State
budget or significantly reduced, the County will consult with municipalities at that time and develop a
subsequent recommendation to the County Board on continuation of this policy and future funding of
curbside recycling programs.
Supporting Information
• Resolution 2010-080
• Copy of Amendment 1
• Copy of Hennepin County Residential Recycling Grant Agreement 1/1/2008 to 12/31/2010
��AA " 0.
• Penny A. Cleve, W Coordinator
Financial Impact: $23,000.00 R Budgeted: Y Source: Refuse Utility
Related Documents (CIP, ERP, etc.): None
• CITY OF HOPKINS
RESOLUTION NO. 2010-080
AUTHORIZING THE APPROVAL OF AMENDMENT 1 TO THE HENNEPIN COUNTY
RESIDENTIAL RECYCLING GRANT AGREEMENT 2008-2010
EXTENDING THE DURATION OF AGREEMENT THROUGH 12/31/2011
WHEREAS, the City of Hopkins and Hennepin County entered into a three-year
Residential Recycling Agreement for a residential recycling grant effective January 1,
2008 through December 31, 2010; and
WHEREAS, the County Board, by Resolution No. 10-0486, adopted on November
16, 2010, approved the Hennepin County Residential Recycling Funding Policy for the
period 1/1/2008 through 12/31/2011, and authorized grant funding for municipal recycling
programs consistent with said policy; and
WHEREAS, to be eligible to receive these County funds the City must amend the
Residential Recycling Agreement with Hennepin County to extend the term of the
Agreement to 12/31/2011 to meet the conditions set forth in the "Hennepin County
Residential Recycling Funding Policy"; and
WHEREAS, the City of Hopkins desires to receive these County funds;
NOW, THEREFORE, BE IT RESOLVED, that the City of Hopkins, City Council
authorizes the adoption of Resolution 2010-080 to approve Amendment 1 to the
Residential Recycling Grant Agreement between Hennepin County and the City of
Hopkins which will extend the agreement term through 12/31/2011; and further authorizes
the City Manager or his designee to execute Amendment 1 to such grant agreement with
the County.
Adopted by the City Council of the City of Hopkins this 7t" day of December, 2010.
ATTEST:
Terry Obermaier, City Clerk
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Eugene J. Maxwell, Mayor
0 Amendment 1 to Contract No: A081233
AMENDMENT 1 TO RESIDENTIAL RECYCLING GRANT AGREEMENT
This Amendment 1 to Residential Recycling Grant Agreement (the "Amendment") is
between the COUNTY OF HENNEPIN, STATE OF MINNESOTA (the "COUNTY") A-2300
Government Center, Minneapolis, Minnesota 55487, on behalf of the Hennepin County
Department of Environmental Services, 417 North Fifth Street, Minneapolis, Minnesota
55401-1397 ("DEPARTMENT") and the CITY OF HOPKINS, 11100 Excelsior Boulevard,
Hopkins, Minnesota 55343 ("CITY").
WHEREAS, the COUNTY and the CITY entered into a three-year Residential Recycling
Grant Agreement, Contract No. A081233 (the "Agreement"), for a residential recycling grant
commencing on January 1, 2008; and
WHEREAS, the County Board, by Resolution No. 10-0486, adopted on November 16,
2010, approved the Hennepin County Residential Recycling Funding Policy for the period
January 1, 2008, through December 31, 2011, and authorized grant funding for municipal
recycling programs consistent with said policy; and
WHEREAS, the parties desire to amend the Agreement to extend the term.
• NOW, THEREFORE, in consideration of the mutual promises and agreements contained
herein, the parties agree as follow:
1. Paragraph a. of Section 1, TERM AND COST OF THE AGREEMENT, shall be
amended to read as follows:
This Agreement shall commence on execution and terminate on
December 31, 2011, unless terminated earlier pursuant to the
provisions set forth herein.
2. Paragraph b.4. of Section 2, SERVICES TO BE PROVIDED, shall be amended to read
as follows:
The CITY shall submit, on forms provided by the COUNTY, a
Final 2008 Report by February 15, 2009; a Final 2009 Report by
February 15, 2010; a Final 2010 Report by February 15, 2011; and
a Final 2011 Report by February 15, 2012. The CITY shall submit
an updated Grant Application by February 15 of each year.
3. Except as hereinabove amended, the terms, conditions and provisions of the Agreement
• shall remain in full force and effect.
COUNTY BOARD AUTHORIZATION
Reviewed by the County Attorney's
Office
Assistant County Attorney
Date:
Recommended for Approval
By:
Director, Department of Environmental Services
Date:
COUNTY OF HENNEPIN
STATE OF MINNESOTA
By:
Chair of Its County Board
ATTEST:
Deputy/Clerk of County Board
Date:
By:
Richard P. Johnson, County Administrator
Date:
By:
Assistant County Administrator, Public Works
Date:
CITY OF HOPKINS
CITY warrants that the person who executed
this Agreement is authorized to do so on behalf of
CITY as required by applicable articles,
bylaws, resolutions or ordinances.*
Signature:
Printed Name:
Date:
*CITY shall submit applicable documentation (articles, bylaws, resolutions or ordinances) that coniums the signatory's
delegation of authority. This documentation shall be submitted at the time CONTRACTOR returns the Agreement to the
COUNTY. Documentation is not required for a sole proprietorship.
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ORIGINAL
Contract No: A081233
RESIDENTIAL RECYCLING GRANT AGREEMENT
This Agreement is between the COUNTY OF HENNEPIN, STATE OF MINNESOTA
(the "COUNTY") A-2300 Government Center, Minneapolis, Minnesota 55487, on behalf of the
Hennepin County Department of Environmental Services, 417 North Fifth Street, Minneapolis,
Minnesota 55401-1397 ("DEPARTMENT") and the CITY OF HOPKINS, 11100 Excelsior
Boulevard, Hopkins, Minnesota 55343 ("CITY").
WITNESSETH:
WHEREAS, the County Board, by Resolution No. 07-539, adopted on November 27,
2007, approved the Hennepin County Residential Recycling Funding Policy -for the period
January 1, 2008, through December 31, 2010, and authorized grant funding for municipal
recycling programs consistent with said policy; and
WHEREAS, the CITY operates a municipal curbside residential recycling program and
other waste reduction and recycling activities (the Recycling Program) as described in their grant
application referred to in Section 2 below; and
WHEREAS, said Recycling Program is consistent with Minnesota Statutes, Chapter
115A; the Office of Environmental Assistance Solid Waste Management Policy Plan; Hennepin
County's Solid Waste Management Master Plan; and Hennepin County's Residential Recycling
Funding Policy.
NOW, THEREFORE, in consideration of the mutual undertakings and agreements
hereinafter set forth, the COUNTY, on behalf of the DEPARTMENT, and the CITY agree as
follows:
TERM AND COST OF THE AGREEMENT
a. This Agreement shall commence upon execution and terminate on December 31,
2010.
b. The initial grant payment for the year 2008 shall be equal to twenty-four thousand
seven hundred seventy-six dollars ($24,776). Grant payments for subsequent
years shall be calculated as set forth in Section 3.
2. SERVICES TO BE PROVIDED
a. The CITY will operate its Recycling Program as more fully described in the Grant
Application that was submitted by the CITY and kept on file with the COUNTY.
The CITY agrees to submit an updated Grant Application each year of the term of
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this Agreement in order to be eligible for future grant funds. The terms of the
Grant Application, as updated each year, are incorporated herein by reference.
b. In addition to the services referred to above, the CITY agrees as follows:
1. On an annual basis, the CITY must demonstrate that the average pounds
of recyclables collected from households participating in their curbside
residential recycling program must equal or surpass the 2007 base year
figure. The base year figure is determined by dividing total pounds of
recyclables collected in 2007 by the total number of households
participating in the curbside recycling program in 2007. Failure to achieve
this annual goal will result in the requirement that a plan be submitted for
COUNTY approval that specifies the efforts the CITY will undertake to
increase the recycling percentage within 90 days of the submittal of the
municipal year-end report. The CITY may also be required to participate
in COUNTY sponsored waste and recycling sorts to identify recovery
levels of various recyclables in their community and to participate in
efforts to increase recovery of target select recyclable materials being
discarded in significant quantities. If the average pounds per household in
any given year decreases from the base year by more than ten percent
(10%), the COUNTY reserves the right to withhold the CITY's grant
funds until the COUNTY is satisfied that reasonable efforts have been
made to maintain the base year pounds per household.
2. At a minimum, the CITY shall collect the following materials at curbside:
a. Newspaper and inserts;
b. Cardboard boxes;
C. Glass food and beverage containers;
d. Metal food and beverage containers;
e. All plastic bottles, except bottles that previously contained
hazardous materials or motor oil;
f. Magazines and catalogs;
g. Cereal, cracker, pasta, cake mix, shoe, gift, and electronics boxes;
h. Boxes from toothpaste, medications, and other toiletries; and
i. Mail, office, and school papers.
3. The CITY must estimate its participation rate in the curbside recycling
program during the month of October of each year. Methodology for
measuring participation must be approved by the COUNTY.
4. The CITY shall submit, on forms provided by the COUNTY, a Final 2008
Report by February 15, 2009; a Final 2009 Report by February 15, 2010;
and a Final 2010 Report by February 15, 2011. The CITY shall submit an
updated Grant Application by February 15 of each year.
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• 5. All grant funds accepted by the CITY from the COUNTY pursuant to this
Agreement shall be used to operate its Recycling Program, including
capital and operating expenses related thereto, in the year granted. The
CITY shall not retain any grant funds in excess of actual Recycling
Program expenses.
The CITY may not charge its residents through property tax, utility fees,
or any other method for that portion of the costs of its Recycling Program
that is funded by COUNTY grant funds.
The CITY shall establish a separate accounting mechanism, such as a
project number, activity number, cost center, or fund that will separate
recycling and waste reduction revenues and expenditures from all other
municipal activities, including solid waste and yard waste activities.
8. Recycling and waste reduction activities, revenues, and expenditures are
subject to audit by the COUNTY.
9. If the CITY does not contract for curbside services, the CITY will receive
grant funds provided that at least ninety percent (90%) of the grant funds
are credited back to residents and the CITY meets all minimum program
requirements. The additional ten percent (10%) of grant funds may be
used for CITY administrative and promotional expenses.
3. METHOD OF PAYMENT
a. The COUNTY will distribute grant funds annually only to the extent the
COUNTY has received SCORE funds from the State of Minnesota. SCORE
funds are based on revenue received by the State of Minnesota from a sales tax on
garbage collection and disposal fees and are subject to change based on revenue
received and allocated by the State. The CITY will receive grant funds per the
formula below:
# of Households
Serviced Curbside by Total SCORE Grant Funds
CITY Revenue
X Received by = Distributed to
COUNTY from State CITY
of Minnesota
Total # of
Households Serviced
Curbside in
COUNTY
• b. Under no circumstances will the COUNTY's distribution of grant funds exceed
the CITY's proportion of SCORE fund revenues received by the COUNTY.
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C. The initial grant fund payment will be forwarded after the County Board receives
and approves this Agreement signed by an authorized official of the CITY.
Provided the CITY is otherwise in compliance with the terms of this Agreement,
future grant fund payments will be made after submittal by the CITY and
approval by the COUNTY of the updated Grant Application and Final Report as
described in Section 2 and receipt by the COUNTY of SCORE funds from the
State of Minnesota.
4. INDEPENDENT CONTRACTOR
CITY shall select the means, method, and manner of performing the services. Nothing is
intended or should be construed as creating or establishing the relationship of co-partners
between the parties or as constituting CITY as the agent, representative, or employee of
the COUNTY for any purpose. CITY is and shall remain an independent contractor for
all services performed under this Agreement. CITY shall secure at its own expense all
personnel required in performing services under this Agreement., Any personnel of CITY
or other persons while engaged in the performance of any work or services required by
CITY will have no contractual relationship with the COUNTY and will not be considered
employees of the COUNTY. The COUNTY shall not be responsible for any claims that
arise out of employment or alleged employment under the Minnesota Economic Security
Law or the Workers' Compensation Act of the State of Minnesota on behalf of any
personnel, including, without limitation, claims of discrimination against CITY, its
officers, agents, contractors, or employees. CITY shall defend, indemnify, and hold
harmless the COUNTY, its officials, officers, agents, volunteers, and employees from all
such claims irrespective of any determination of any pertinent tribunal, agency, board,
commission, or court. Such personnel or other persons shall neither require nor be
entitled to any compensation, rights, or benefits of any kind from the COUNTY,
including, without limitation, tenure rights, medical and hospital care, sick and vacation
leave, Workers' Compensation, Re-employment Compensation, disability, severance pay,
and retirement benefits.
INDEMNIFICATION AND INSURANCE
A. CITY agrees to defend, indemnify, and hold harmless the COUNTY, its officials,
officers, agents, volunteers and employees from any liability, claims, causes of
action, judgments, damages, losses, costs, or expenses, including reasonable
attorney's fees, resulting directly or indirectly from any act or omission of CITY,
a subcontractor, anyone directly or indirectly employed by them, and/or anyone
for whose acts and/or omissions they may be liable in the performance of the
services required by this Agreement, and against all loss by reason of the failure
of CITY to perform any obligation under this Agreement.
B. In order to protect CITY and those listed above under the indemnification
provision, CITY agrees at all times during the term of this Agreement, and
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beyond such term when so required, to have and keep in force the following
insurance, either under a self-insurance program or insurance policies as follows:
Limits
1. Commercial General Liability on an occurrence
basis with contractual liability coverage:
General Aggregate $2,000,000
Products—Completed Operations Aggregate 2,000,000
Personal and Advertising Injury 1,000,000
Each Occurrence—Combined Bodily
Injury and Property Damage 1,000,000
2. Workers' Compensation and Employer's Liability:
Workers' Compensation Statutory
If CITY is based outside the State of Minnesota,
coverage must apply to Minnesota law. In
accordance with Minnesota law, if CITY is a sole
proprietor, it is exempted from the above
Workers' Compensation requirements. In the
event that CITY should hire employees or
subcontract this work, CITY shall obtain the
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required insurance.
Employer's Liability. Bodily injury by:
Accident—Each Accident 500,000
Disease—Policy Limit 500,000
Disease—Each Employee 500,000
C. An umbrella or excess policy over primary liability insurance coverages is an
acceptable method to provide the required insurance limits.
The above establishes minimum insurance requirements. Upon written request,
CITY shall promptly submit copies of insurance policies to the COUNTY.
6. DATA PRACTICES
CITY, its officers, agents, owners, partners, employees, volunteers and subcontractors
shall abide by the provisions of the Minnesota Government Data Practices Act,
Minnesota Statutes, Chapter 13 (MGDPA), the Health Insurance Portability and
Accountability Act and implementing regulations, if applicable, and all other applicable
state and federal laws, rules, regulations and orders relating to data privacy or
confidentiality. CITY agrees to defend, indemnify and hold harmless the COUNTY, its
• officials, officers, agents, employees, and volunteers from any claims resulting from
CITY's officers', agents', owners', partners', employees', volunteers', assignees' or
subcontractors' unlawful disclosure and/or use of such protected data, or other
• noncompliance with the requirements of this section. CITY agrees to promptly notify the
COUNTY if it becomes aware of any potential claims, or facts giving rise to such claims,
under the MGDPA. The terms of this section shall survive the cancellation or
termination of this Agreement.
RECORDS — AVAILABILITY/ACCESS
Subject to the requirements of Minnesota Statutes Section 16C.05, Subd. 5, CITY agrees
that the COUNTY, the State Auditor, the Legislative Auditor or any of their authorized
representatives, at any time during normal business hours, and as often as they may
reasonably deem necessary, shall have access to and the right to examine, audit, excerpt,
and transcribe any books, documents, papers, records, etc., which are pertinent to the
accounting practices and procedures of CITY and involve transactions relating to this
Agreement. CITY shall maintain these materials and allow access during the period of
this Agreement and for six (6) years after its termination or cancellation.
SUCCESSORS SUBCONTRACTING AND ASSIGNMENTS
A. CITY binds itself, its partners, successors, assigns and legal representatives to the
COUNTY for all covenants, agreements and obligations contained in the contract
documents.
• B. CITY shall not assign, transfer or pledge this Agreement and/or the services to be
performed, whether in whole or in part, nor assign any monies due or to become
due to it without the prior written consent of the COUNTY. A consent to assign
shall be subject to such conditions and provisions as the COUNTY may deem
necessary, accomplished by execution of a form prepared by the COUNTY and
signed by CITY, the assignee and the COUNTY. Permission to assign, however,
shall under no circumstances relieve CITY of its liabilities and obligations under
the Agreement.
C. CITY shall not subcontract this Agreement and/or the services to be performed,
whether in whole or in part, without the prior written consent of the COUNTY.
Permission to subcontract, however, shall under no circumstances relieve CITY of
its liabilities and obligations under the Agreement. Further, CITY shall be fully
responsible for the acts, omissions, and failure of its subcontractors in the
performance of the specified contractual services, and of person(s) directly or
indirectly employed by subcontractors. Contracts between CITY and each
subcontractor shall require that the subcontractor's services be performed in
accordance with the terms and conditions specified.
MERGER AND MODIFICATION
A. It is understood and agreed that the entire Agreement between the parties is
• contained herein and that this Agreement supersedes all oral agreements and
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negotiations between the parties relating to the subject matter. All items that are
referenced or that are attached are incorporated and made a part of this
Agreement. If there is any conflict between the terms of this Agreement and
referenced or attached items, the terms of this Agreement shall prevail.
B. Any alterations, variations, modifications, or waivers of provisions of this
Agreement shall only be valid when they have been reduced to writing as an
amendment to this Agreement signed by the parties.
10. DEFAULT AND CANCELLATION
A. If CITY fails to perform any of the provisions of this Agreement or so fails to
administer the work as to endanger the performance of the Agreement, it shall be
in default. Unless CITY's default is excused by the COUNTY, the COUNTY
may upon written notice immediately cancel this Agreement in its entirety.
Additionally, failure to comply with the terms of this Agreement shall be just
cause for the COUNTY to delay payment until CITY's compliance. In the event
of a decision to withhold payment, the COUNTY shall furnish prior written notice
to CITY.
B. Upon early termination or cancellation of this Agreement, the CITY shall itemize
any and all grant funds expenditures up to the date of termination or cancellation
and return such grant funds not yet expended.
C. Notwithstanding any provision of this Agreement to the contrary, CITY shall
remain liable to the COUNTY for damages sustained by the COUNTY by virtue
of any breach of this Agreement by CITY. Upon notice to CITY of the claimed
breach and the amount of the claimed damage, the COUNTY may withhold any
payments to CITY for the purpose of set-off until such time as the exact amount
of damages due the COUNTY from CITY is determined. Following notice from
the COUNTY of the claimed breach and damage, CITY and the COUNTY shall
attempt to resolve the dispute in good faith.
D. The above remedies shall be in addition to any other right or remedy available to
the COUNTY under this Agreement, law, statute, rule, and/or equity.
E. The COUNTY's failure to insist upon strict performance of any provision or to
exercise any right under this Agreement shall not be deemed a relinquishment or
waiver of the same, unless consented to in writing. Such consent shall not
constitute a general waiver or relinquishment throughout the entire term of the
Agreement.
F. This Agreement may be canceled with or without cause by either party upon
thirty (30) day written notice.
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G. In the event the COUNTY does not receive any SCORE funds, this Agreement
• will be terminated upon written notice by the COUNTY.
H. Provisions that by their nature are intended to survive the term, cancellation or
termination of this Agreement include but are not limited to: INDEPENDENT
CONTRACTOR; INDEMNIFICATION AND INSURANCE; DATA
PRACTICES; RECORDS-AVAILABILITY/ACCESS; DEFAULT AND
CANCELLATION; PROMOTIONAL LITERATURE; and MINNESOTA LAW
GOVERNS.
11. CONTRACT ADMINISTRATION
In order to coordinate the services of the CITY with the activities of the Department of
Environmental Services so as to accomplish the purposes of this contract, Dave McNary,
Solid Waste Division Manager, or his or her successor, shall manage this contract on
behalf of the COUNTY and serve as liaison between the COUNTY and the CITY.
12.. COMPLIANCE
CITY shall comply with all applicable federal, state and local statutes, regulations, rules
and ordinances currently in force or later enacted.
13. PAPER RECYCLING
• The COUNTY encourages CITY to develop and implement an office paper and
newsprint recycling program.
14. NOTICES
Any notice or demand which must be given or made by a party under this Agreement or
any statute or ordinance shall be in writing, and shall be sent registered or certified mail.
Notices to the COUNTY shall be sent to the County Administrator with a copy to the
originating Department at the address given in the opening paragraph of the Agreement.
Notice to CITY shall be sent to the address stated in the opening paragraph of the
Agreement or to the address stated in CITY's Form W-9 provided to the COUNTY.
15. PROMOTIONAL LITERATURE
CITY agrees that the terms "Hennepin County" or any derivative shall not be utilized in
any promotional literature, advertisements of any type or form or client lists without the
express prior written consent of the COUNTY.
16. MINNESOTA LAWS GOVERN
The Laws of the State of Minnesota shall govern all questions and interpretations
• concerning the validity and construction of this Agreement and the legal relations
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between the parties and their performance. The appropriate venue and -jurisdiction for
any litigation will be those courts located within the County of Hennepin, State of
Minnesota. Litigation, however, in the federal courts involving the parties will be in the
appropriate federal court within the State of Minnesota. If any provision of this
Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be
affected.
THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK
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Reviewed the CountyAttomey's
Office
Assistant County Attorney
Date: kzl3/CS'
CITY OF HOPKINS*
Signature:
COUNTY BOARD AUTHORIZATION
COUNTY OF HENNEPIN
STATE OF MINNESOTA
By: Z,4, 4� C
Chair of Its o my Board
ATTESTP)erk
of Co ty Board
By:
Richard P. Johnson, Coun dministrator
Date: C�,— `�, �(— U
By:
Assistant County Administrator, Public Works
Daie: /,0 - / 7 — `) g
Recommended for Approval
By: dzALw�z- —
Director, Department of Environmental Services
Date:
CITY OF H KINS
Signature:
Name: Eugene J Maxwell Name: Richard B. Getschow
(Printed Name) (Printed Name)
Title: Mayor Title: City Manager
(Printed Title) (Printed Title)
Date:
Date:
* CITY shall submit upon request by COUNTY documentation (articles, bylaws, resolutions, or
ordinances) that confirms the signatory's delegation of authority.
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CITY OF HOP'KINS
MEMORANDUM
Date: December 7, 2010
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2011 Budget Hearing
FINANCE DEPARTMENT
The December 7, 2010 council meeting will include discussion of the city budget and will allow
the public to comment. This is a change from past years when a formal budget hearing was
required. An announcement was made at the September 7th meeting setting December 7th as the
date we would accept public comments on the 2011 budget. This information was forwarded to
Hennepin County to include on the parcel specific notices that were mailed in mid November.
For the budget hearing we have established the following agenda:
1. Power point presentation
2. Questions from council
3. Questions from public
4. Close the budget hearing
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Public Hearing for the
2011 Levy and Budget
December 7, 2010
Taxation Process
• Preliminary Levy was set in September
• Proposed tax notices mailed
• Public hearing for final proposed levy
and general fund budget.
• Final adoption of budget and levy
a December 21 st council meeting.
To discuss the City's budget
To discuss how the city budget impacts
the city portion of your taxes
The focus of the hearing is on the
budget and levy, not property valuations
v Property valuation discussions are held
each spring
caw Your City and County Property
Taxes Are
Determined
................... .
Tod
Proposed Local
BWp]1
A..`ao
Market Valu]
-minus
I NI RanIrapedy
Tax Re an
Tax Shift
iw...n.r.n..
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PP.rty m
R
(L Y)
_ equals
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$12,000
• equals
P-rty
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$10,000
-.,
❑2000
r `
$8r000
;
112007
$8,000
❑ 2008
■ 2009
$4,000
",
E-
02010
$2,000
aa.
® 2011
50
Residential
Commllndus Apartments
Tax Capacity Values
To discuss the City's budget
To discuss how the city budget impacts
the city portion of your taxes
The focus of the hearing is on the
budget and levy, not property valuations
v Property valuation discussions are held
each spring
caw Your City and County Property
Taxes Are
Determined
................... .
Tod
Proposed Local
BWp]1
A..`ao
Market Valu]
-minus
I NI RanIrapedy
Tax Re an
: (me]
stay
M deed
LI]]s R]b]
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Tax Capacity Comparison
$25,000,000
$70,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2002 2003 7004 2005 2006 2007 2008 2008 2010
+RnWe dal • Ape0me6 CA Other+Taal
Tax Increment Financing
Decertification of TIF District 2-1
Added over $521,000 to the tax base
Spreads taxes over a greater value
Reduces taxes for all taxpayers
Fiscal Disparities
Spreads commercial growth among all
metro cities and benefits cities that are
not experiencing commercial growth
Hopkins had been a net "gainer" — we
received more than we contributed
Hopkins is now a net "contributor' —
meaning we contribute more that we
receive
Results in higher tax rate
Smart Growth and Development
High st Tax Capacity Per Acres Cities
Net
2009 Total
2009 Tax
3,324,078
city
Acres
Tax Ca itv
Ca /Acre Rank
Minnea olis
36,726
$482,224,534
$13,130
1
Edina
10,225
$122,532,149
$11,983
2
St. Louis Park
6,914
$69,704,856
$10,082
3
Spring Park
387
$3,594,331
$9,281
4'°
Richfield
4,455
$39,122,878
$8,782
5
Excelsior
554
$4,838,446
$8,733
6
Ho kin$
2,616
$21,687,774
$8,290111
7
High st Tax Capacity Per Acres Cities
Net
2009 Total
2009 Tax
3,324,078
city
Acres
Tax Ca itv
Ca /Acre Rank
Minnea olis
36,726
$482,224,534
$13,130
1
Edina
10,225
$122,532,149
$11,983
2
St. Louis Park
6,914
$69,704,856
$10,082
3
Spring Park
387
$3,594,331
$9,281
4'°
Richfield
4,455
$39,122,878
$8,782
5
Excelsior
554
$4,838,446
$8,733
6
Ho kin$
2,616
$21,687,774
$8,290111
7
Effect of TIF 2-1 Decertification
Proposed Tax Rate = 55.673%
Rate if TIF 2-1 had NOT been
decertified = 57.561%
Lowered tax rate by 1.888%
On a home valued at $225,000 this
equates to $43 less in CITY taxes
Fiscal Disparities Changes
Changes in the Fiscal Disparities Program
affects the tax rate for Hopkins properties.
Net
Year Contribution Distribution GainllLossl
2011
3,324,078
2,645,025
(679,053)
2010
2,858,921
2,913,208
54,287
2009
2,766,202
2,840,070
73,868
2008
2,450,063
2,405,483
(44,580)
2007
2,116,466
1,997,455
(119,011)
2006
1,952,996
1,836,753
(116,243)
2005
1,526,509
1,673,106
146,597
•
0
Fiscal Disparities Effect
Proposed Tax Rate = 55.673%
Rate if Fiscal Disparities had remained
the same as 2010 = 53.508%
Effect — increased tax rate by 2.165
On a home valued at $225,000 this
equates to $50 more in CITY taxes
2011 Proposed Tax Levy
Gadls.Ytl
fa.,aBf,. fa�.0,0
: asaa,oa.
Capital Levy Reinstated
,��
,ao.000
Sp. ILIA..
P— L
�.
Property Taxes
lyy
M, 1-75
888,850
bYl fa.d.l L.vl..-Oa.r
wCt L.d.c
R� Bona
f a;fa. f n
f M'®
1 GO P.mlma
ReNrtiy BON, - PeM 8 Rec
30080001mprovR.Nw,gBae4
ao .000
�fi9.000
-
59.000
2m78;1—Rnwrge
mP,.IImPa.,,,.tlB�d.
175000 1&5,000
,7z,000
3QIOABOntl.
15.02%
,00.000
r. .IL.
s.ew . weu.d.,
f,,97,aao s,,m.oso
s ,a,,oao
toambl ap.tl.l Yd..
f ,.90.fOD i
75,000
TOTAL I.—
f 0.661,1,1 f 0.69,686
f 10.,39,616
Inrn.a ov.r pilar r.r
f a94T3. f T3,f71 f 31],79
P.ronlaa. Incrlwal�Todl
afOY. afaft T.s1Y.
2011 Proposed
General Fund Budget and Levy
General Fund Budqet
$10,299,327
This is an increase
from the 2010 budget
of 2.25%.
2011 Lew
$10,138,414
This is an increase
over the current year's
levy of $212,729 or
2.14% and no change
from the preliminary
certified levy.
Tax Levy Changes
General Levy Increase
$155,054
Capital Levy Reinstated
100,000
Special Levy Decrease
( 16,325)
(For MVHC unallotment)
Property Taxes
Debt Levy Decrease
26 000
Total Levy Change
$212,729
Revenue Budget
2010
2011
%
General Fund
Budget
Budget
Incrf(Decr)
Property Taxes
$ 8,470,018 $ 8,630,584
1.90%
Intergovernmental Revenue
440,725
442,070
0.31%
Licenses, Permits & Fees
632,910
544,790
-13.92%
Charges for SeMce
140,150
161,200
15.02%
Miscellaneous Revenue
314,400
314,900
0.16%'.. `
Interest Earnings
75,000
75,000
0.00%
Use of Reserves
-
130,803
0.00%
Total Revenues
$ 10,073,203 $ 10,299,347
2.26% ">'.
•
General Fund — Sources of Revenue
t00x
s1r. Nd
'0'02011
Budget %
General Fund
Budget
Budget
Incr/(Decr)
City Council
$ 73,147 $
71,547
-2.19%
Administrative Services
433,314
W%
4.24%
Finance
190,039
203,243
6.95%
Legal
135,000
70%
0.00%
Municipal Building
306,284
294,818
-3.74%
Receptionist
46,576
sax
-5.16%
Assessing
168,065
167,236
-0.49%
City Clerk
107,958
Sax
-7.91%
i"I'lil
599,705
616,607
2.82%
Police
4,366,178
M% -
2.71%
Fire
794,517
838,258
5.51%
Public Works
2,146,475
30%
1.30%
Recreation
197,640
199,721
1.05%
Activity Center
326,416
20%
2.16%
Planning & Zoning
121,687
125,182
2.87%
Other Financing Uses
60,000
10%
0.33%
Total Expenditures
$10,073,003 $ 10,299,327
- 2.25
ox
2002
2002 2004
2005 2006
2007
2009
2009
2010
2011
General Fund Budget
Three Year Comparison
Year Budget Incr/Decr % Change
2009 $ 10,075,492
2010 $ 10,073,003 $ (2,489) -0.02%
2011 $ 10,299,327 $ 226,324 2.25%
Change over three year period = 2.22%
Average change over three years is less than 1 % per
year
Savings & Efficiencies
*Grants/Donations
Over $5.0 Million Since 2005
Expenditure Budget
'0'02011
Budget %
General Fund
Budget
Budget
Incr/(Decr)
City Council
$ 73,147 $
71,547
-2.19%
Administrative Services
433,314
451,670
4.24%
Finance
190,039
203,243
6.95%
Legal
135,000
135,000
0.00%
Municipal Building
306,284
294,818
-3.74%
Receptionist
46,576
44,172
-5.16%
Assessing
168,065
167,236
-0.49%
City Clerk
107,958
99,415
-7.91%
Inspections
599,705
616,607
2.82%
Police
4,366,178
4,484,387
2.71%
Fire
794,517
838,258
5.51%
Public Works
2,146,475
2,174,400
1.30%
Recreation
197,640
199,721
1.05%
Activity Center
326,416
333,471
2.16%
Planning & Zoning
121,687
125,182
2.87%
Other Financing Uses
60,000
60,200
0.33%
Total Expenditures
$10,073,003 $ 10,299,327
- 2.25
General Fund Budget
Expenditure Solutions
Over Last Two Years
* Wage freezes for most employees
Debt Savings/Refinancing
a Delayed hiring of vacant positions
Eliminated non-critical capital items
a "Every little bit adds up" — small cuts
across all city departments
Savings & Efficiencies
Innovation
Partnerships- Hopkins School District,
Hennepin County, Neighboring Cities, Three
Rivers Park District, Watershed Districts, etc.
a "Go Green"
•
•
•
Savings & Efficiencies
Go Green
Implemented police vehicle fuel monitoring
system to save on fuel costs
• Building and Facility Changes have saved
over $15,000 annually
• Organics recycling
• Scanning of documents to digital storage
• Paperless Packets
LED Lighting Improvements
Long -Range Planning
Capital Improvement Plan
Equipment Replacement Plan
Both are 20 year plans for major expenditures
• Focus is on next 5 years
. Allows us to plan for funding of major
projects and equipment purchases
Budget Challenges
• Loss of significant revenue sources
MVHC
Inspection revenues
Decline in investment income
• Health care costs
• PERA rate increase — state mandated
• Inflation
• Energy costs
r Fuel & fuel related projects
a Property & liability insurance
0
•
0
Value for Taxes
24 -Hour Police and Fire Protection
Emergency medical treatment and management services
* Well Maintained Streets, Trails, and Sidewalks
Refuse and Recycling Services
* Elections
Boulevard Tree and Forestry Program
High Quality Recreation programs
a Hopkins Activity Center and Hopkins Depot
* Hopkins Center for the Arts
e Community and Economic Development
* Housing Services and Programs
*� Building Inspections, Licensing, and Code Enforcement
o Beautiful Parks and Open Space
Where My Taxes Go
Property Tax Breakdown
�r
on Home Valued at
'•
$225,000
*City $1,252
*County $1,041
*School District $ 544
*Special Districts 236
Total Taxes $3,073
This does not include referendum market
value taxes levied by the school district(s) or
reduction for market value homestead credit.
�Ac
Value for Taxes
24 -Hour Police and Fire Protection
Emergency medical treatment and management services
* Well Maintained Streets, Trails, and Sidewalks
Refuse and Recycling Services
* Elections
Boulevard Tree and Forestry Program
High Quality Recreation programs
a Hopkins Activity Center and Hopkins Depot
* Hopkins Center for the Arts
e Community and Economic Development
* Housing Services and Programs
*� Building Inspections, Licensing, and Code Enforcement
o Beautiful Parks and Open Space
Where My Taxes Go