CR 2013-097 Resolution Approving Transfer of Excess Fee RevenuesOctober 1, 2013 Council Report 2013-097
RESOLUTION APPROVING TRANSFER OF EXCESS FEE REVENUES
Proposed Action
Staff recommends that the Council approve the following motion: Move to approve Resolution 2013-059
transferring excess Revenue Fees to Supplemental Project Funds.
Overview
In 1995, the City of Hopkins and Meadow Creek entered into an agreement to fund certain improvements at
Meadow Creek. The original projects have been completed along with the rear exterior door and smoke
detector/fire alarm projects approved in resolution 2012-049. Following those projects there remains
approximately $36,600 available for additional projects. The Council again has the choice as to whether the
City wants to tell the Association what improvements should be made or whether it should allow the
Association to make this decision.
Included in the June 19, 2012 council meeting packet was a Meadow Creek board approved list of capital
improvements that they will be spending money on no matter what the City decides to do with the excess fee
revenues. In addition, the rear door project which is an approved project cost a total of $77,964 of which
$65,000 was reimbursed leaving a balance of $12,964 that could potentially be reimbursed. Also on the list
and an approved expenditure is replacement of light fixtures for which they submitted invoices totaling
$9,110. The balance of the door project and the light fixtures total $22,074 leaving approximately $14,500
for other approved expenses.
Primary Issues to Consider
• What projects are authorized by the original agreement and Ordinance 95-759?
• What options does the Council have for distributing excess Fee Revenues?
• Is there a deadline for distributing the excess Fee Revenues?
• What additional improvements could the City Council include in a project fund?
Supporting Information
• Resolution 2013-059
• Meadow Creek Condominiums Approved Reserve Expenses
• Meadow Creek letter dated 9-18-2013 requesting release of remaining funds
• Meadow Creek board minutes of 8-31-2013 approving letter requesting remaining funds
Christine M. Harkess, CPA, CGFM
Finance Director
Council Report 2013-097
Page 2
Primary Issues to Consider
What improvements are authorized by the original agreement and Ordinance 95-759?
Rehabilitation of garages Installation of new signage
Rebuilding of trash and recycling areas Parking lot repairs
Upgrading of building exteriors Site Improvements
Replacement of lighting fixtures
What options does the Council have for distributing excess Fee Revenues?
The Council has two options for distributing the excess fee revenues:
The Council can pass a resolution disbursing all or part of the excess funds to the Association to be deposited
in an 'Excess Revenue Subaccount" of a Replacement Reserve Fund. Money in the Excess Revenue
Subaccount could only be spent for improvements, authorized by Ordinance 95-759, as determined by the
Association. The Association would have to submit plans and written estimates to the City Building Official
prior to undertaking the improvements.
and/or
The Council can pass a resolution specifying additional improvements, as authorized by Ordinance 95-759,
and transfer all or a portion of the excess money into a supplemental project fund. This fund would be used
to reimburse the Association for the money it spent on the specified improvements.
Is there a deadline for distributing the excess Fee Revenues?
There is no deadline in the Agreement or the Ordinance on when the excess Fee Revenues need to be
disbursed.
What additional improvements could the City Council include in a project fund?
Should the City Council wish to specify additional improvements, there are a number of projects already
planned or contemplated for Meadow Creek. The Meadow Creek Board of Directors approved a list of
projects which would meet the criteria set out in Ordinance 95-759. (See Meadow Creek Condominiums
Approved Reserve Expenses).
There currently is only one governing body for the Meadow Creek Condominiums, the Westbrook
Condominium Association and it is the only body empowered to undertake repairs and upgrades to the
Meadow Creek buildings and grounds. The current board has approved a list of capital expenditures which
the current owners will have to pay for. Transfer of the excess fee revenues will help defray the cost of these
capital projects.
Staff is recommending that the balance of the funds be turned over to the Meadow Creek Condo
Association for expenses which would meet the criteria set out in Ordinance 95-759.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2013-059
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA
TRANSFERRING EXCESS FEE REVENUES
WHEREAS, by Ordinance No. 95-759 adopted March 21, 1995, the City Council established
Housing Improvement Area No. 1 in order to facilitate certain improvements to property known
as the Meadow Creek Condominiums, and
WHEREAS, Minnesota State Statutes authorized the City to issue Housing Improvement Bonds
(the 'Bonds") in the amount necessary to defray the expense to be incurred in making the
housing improvements; and
WHEREAS, the City of Hopkins, in May 1995, entered into a Development Agreement (the
"Agreement") with Westbrooke Condominium Association, D.B.A. Meadow Creek
Condominiums (the "Association"); and
WHEREAS, Bonds were issued and fees were charged to each housing unit in Housing
Improvement Area No. 1 in order to finance certain improvements as defined in Ordinance No.
95-759; and
WHEREAS, the Housing Improvements that were funded by the Bonds have been completed
and paid for; and
WHEREAS, the Bonds have been paid in full and the City has determined that it has excess Fee
Revenues as defined in the Agreement; and
WHEREAS, the City Council may, by resolution, specify additional housing improvements (as
defined in Ordinance No. 95-759) and transfer all or any portion of such excess Fee Revenues
into a project fund (the "Supplemental Project Fund"); and
WHEREAS, amounts in the Supplemental Project Fund shall be disbursed to the Association to
pay the cost of the housing improvements specified by the City; and
WHEREAS, City staff specified in Resolution 2012-049 specific Housing Improvements at
Meadow Creek Condominiums that should be completed;
WHEREAS, the projects specified in Resolution 2012-049 have been completed and excess fee
revenue remains;
NOW, THEREFORE, the City Council of the City of Hopkins, Minnesota hereby resolves as
follows:
The City of Hopkins shall transfer all such excess Fee Revenues that remain following the
projects specified in Resolution 2012-049 to the Meadow Creek Condo Association to be used
for projects specified by Ordinance No. 95-759 adopted March 21, 1995. All remaining funds
shall be disbursed in accordance with the provisions of the Agreement.
Adopted by the City Council of Hopkins, Minnesota, this 1" day of October 2013.
CITY OF HOPKINS, MINNESOTA
Eugene J. Maxwell, Mayor
ATTEST:
Kristine A. Luedke, City Clerk
June 18, 2012
Meadow Creek Condominiums
Approved Reserve Expenses
Cost
Replace 67 rear doors
$77,964
Replace 67 rear light fixtures
$14,320
Replace 8 front doors
$19,200
Insulate 21 building attics
$63,000
Total $174,484
Meadow Creek Condominiums
823 Old Settlers Trail
Hopkins, MN 55343
September 18, 2013
Christine M. Harkess, CPA, CGFM
Finance Director
City of Hopkins
1010 First St S,
Hopkins, MN 55343-7558
Subject: Housing Improvement Project Funds
We are respectfully requesting that the City transfer all remaining funds to the Association to be used for the
purposes outlined in the original agreement and ordinance: This includes;
Rehabilitation of garages
Rebuilding of trash and recycling areas
Upgrading of building exteriors
Replacement of lighting fixtures
Sincerely,
Meadow Creek Condominium Association
Board of Directors
Installation of new signage
Parking lot repairs
Site improvements
DRAFT
Westbrooke Condominium Association dba
MEADOW CREEK CONDOMINIUMS
Minutes of Meadow Creek Board Meeting
Meadow Creek Office Center Conference Room
Wednesday, August 31, 2013
ATTENDING: John Ward, Enrique Torrano, Cecelia Timm, Veronica Virtue,
Sandy Miller, Anne Denelsbeck, Pam Brabender-Kley
ABSENT: Doug Harbrecht
STAFF (Rockford): Lisa Jean Thompson, Pete Rocheford
GUESTS: Todd Bacon, Mary Sorenson.
1. Call to order:
The meeting was called to order by President, John Ward, at 6:05 pm.
2. Member concerns:
Todd Bacon requested the Board discuss the status of filling vacant seat on the Board.
He was informed that the Board would be discussing applications in the closed session
following the meeting.
Brian Lerman 932-6: Expressed concern regarding noise from his unit to the unit below.
There was discussion concerning the lack of insulation between floors and sound channel
issues. It was noted that it is the responsibility of the owner of the first floor unit to
insulate; however it was suggested that Brian could offer to split the cost of insulation. It
was also noted that the association will screw down the sound channels at no cost to the
2nd floor unit owner if it is done when the carpet is replaced. Brian was given Tim Mix's
name as the person to contact to repair the ceiling after insulation is completed. Brian
will contact the owner of the unit below to remedy this matter.
Todd Bacon: Expressed concerns about activity at the pool: drinking, smoking, eating,
disruptive behavior. He was advised that residents should contact the Meadow Creek
office and report all violations at the time they occur so Management can address them.
Todd also expressed concerns about crime on Meadow Creek property. He was reminded
that he should call 911 if he witnesses criminal activity.
3. Approval of the Agenda:
Motion: Sandy Miller. Second: Enrique Torrano. Passed.
4. Approval of Minutes from Last Meeting:
Sandy Miller noted one correction in the Minutes concerning the name and address of
one resident. Motion to approve with correction: Veronica Virtue. Second: Pam
Brabender-Kley. Enrique Torrano abstained. Passed.
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5. Collection Update:
The collection issues detailed in the Board packet were reviewed and action was taken as
follows:
A. Resolved to initiate foreclosure.
Motion: Sandy Miller. Second: Cecelia Timm. Passed.
B. No action.
C. Resolved to initiate foreclosure.
Motion: Enrique Torrano. Second: John Ward. Passed.
D. No action.
E. No action.
F. No action.
G. No action.
H. Resolved to rent unit out 1029-5 on month to month basis for $890+; with garage
for an additional $90-95/mo.
Motion: Sandy Miller. Second: John Ward. Passed.
I. Resolved to accept offer of $2,000.
Motion: John Ward. Second: Sandy Miller. Passed.
J. No action.
K No action.
L. No action.
M. No action.
N. No action.
O. No action.
6. Treasurer's Report:
Enrique Torrano summarized account balances as of July 31, 2013 as shown on the
Balance Sheet:
Operating Checking balance:
$ 3,917.90
Operating Reserve balance:
$ 13,864.11
Replacement Reserve balance:
x$575,573.40
Total cash on hand:
$593,355.41
7. Management Report:
a. Asphalt Repairs:
The repairs are completed; potholes are patched.
b. Concrete Repairs:
Resolved to accept bid from Molco Inc.
Motion: John Ward. Second: Pam Brabender-Kley. Passed.
C. Proposal for Cleaning Gutters:
Proposals were received from Centennial Exteriors, McPhillips Bros., and
Central Roofing. Resolved to accept bid from Centennial for $6,500 and have
the work done after the leaves fall in late October. (Their bid was the lowest of
the 3.)
Motion: Cecelia Timm. Second: Pam Brabender-Kley. Opposed: Enrique
Torrano. Passed.
d. Dirt and Seed Proposal:
Discussion concerning lack of grass along some sidewalks due to salt and sand,
in shady areas, and areas of erosion. Agreed that in these areas we need to either
MCC Board Meeting — August 21, 2013
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plant hosts or shady grass. We should also aereate and add fabric and mulch
under some trees. The worst areas are near the 702-708, 802,804, 806, 808,
1002, 1004, and 1006 buildings. Pete will get a new proposal from Lunseth to
complete half the work now and half later. Motion: By Enrique Torrano to do
the areas near the 1002, 1004 and 1006 buildings now not to exceed $5,000.
Second: Sandy Miller. Passed.
e. Pool Monitor:
A new pool monitor has been hired. The pool will close after Labor Day.
f. Insurance:
American Family will provide the association's property insurance again next
year with coverage in the amount of $60 million for the buildings; last year we
had coverage for $59 million. Our policy renews in November. American
Family will also provide D&O insurance for $2,500. The Chubb premium was
about the same.
g. Smoke Detectors:
The smoke detectors have all been installed. All the buildings have new wiring.
We haven't received the bill yet but it will be slightly over budget because some
buildings needed more work than anticipated. The City inspector has inspected
them. We will ask the City to release funds to the Association as agreed.
h. Roofs and Gutters:
We received the final bill from McPhillips for $6,400 for the final roof project.
We will pay it when the gutter work and downspouts are moved. John noted
there are some issues with the new fascia; Pete will address these.
i. After hours phone calls:
We have a new phone number for after hours emergencies; it isn't in use yet.
The phone will travel with the on-call Building Tech. The phone number will be
posted in all buildings soon.
k. City Held Funds:
The Board approved a letter drafted to the city requesting the remainder of the
funds held by the city with respects to the bonding program.
S. Old Business:
The vacant Board position will be discussed in closed session tonight.
9. New Business:
• Front Doors: About 20 are done. John Ward suggested a few more be done this
fall, specifically buildings 926, 1004 and 1005 due to their deteriorating
condition. The current doors are hollow; we should select steel doors that are
foam filled doors to improve energy efficiency. The estimated cost of each door
is $2500-3500 plus installation; maximum cost per door $4,000. The doors come
primed; we should paint them this fall. The doors that won't be replaced this fall
need to have the sills painted; the building techs can do this. We need to finish
installing security on some doors; about 4 are in very poor condition and should
be replaced now. If we do 6 doors now, we could use $24,000 from the $135,000
the City will be refunding to us. (We've already earmarked about $60,000 for
roofs and $40,000 for electrical work that has to be done.)
• Exterior railings: The two railings outside the office building weren't painted
and the railings in front of the 1013 and 1015 bldgs are rusty. Pete will ask Rich
Hames to paint them.
• Bids for the Community room kitchen and bathrooms: Bids have been
obtained. The Board reviewed colors and materials for tile, wood, etc.
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Management is working with Value Plus Flooring on this project. (This is the
same company that did the office center remodel.) The recommendation is to
completely remodel the kitchen, remove that closet and install new wood
cabinets with raised panel doors, high resolution counters, carpet baseboards.
Floors: luxury vinyl tile in high traffic areas and carpet.
Estimated cost to remove floor in community room and install carpet and vinyl is
$18,175. Estimated cost to replace kitchen cabinets and countertops is $5,733
plus the cost to remove existing. Appliances would be additional. Estimated
cost to replace both bathroom marble vanity tops and cabinets is $1,554; cost to
put ceramic tile on the floors and walls with deco trim pieces, replace both toilets
with high toilets and add handicap bars is $3,950. We have budgeted the cost to
complete all except the bathrooms in the 2013 budget. We can do the bathrooms
in 2014.
Todd Bacon offered to give Management the name of the contractor he works
with; as soon as he does, they will be contacted.
• Mary Sorenson and Veronica Virtue reported hearing a constant buzzing sound
in the office that has lasted all weekend on occasion. Management will
investigate.
Meeting adjourned at 8:32 pm.
Respectfully submitted,
Anne Denelsbeck, Acting Secretary
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