09/12/2005 - City Council Speciala;,~_ ~.~
SPECIAL CITY COUNCIL WORKSHOP
MONDAY, SEPTEMBER 12, 2005
5:30 P.M.
EAGAN MUNICIPAL CENTER-EAGAN ROOM
AGENDA
I. ROLL CALL AND AGENDA ADOPTION
II. VISITORS TO BE HEARD
~',1 III. COMMITTEE UPDATE ON FULL TIME FIRE CHIEF POSITION
DESCRIPTION AND CONVERSION OF BYLAWS TO STANDARD
OPERATING PROCEDURES
~ ~ IV. COMPREHENSIVE GUIDE PLAN-PARK DESIGNATION OPTIONS
P ~ ~ V. IN HOME MASSAGE THERAPY LICENSING
p 3~ VI. HOUSING IMPROVEMENT DISTRICT
t~l~ VII. 2006-2010 PART II CIP
VIII. OTHER BUSINESS
IX. ADJOURNMENT
Agenda Information Memo
September 12, 2005
III. COMMITTEE UPDATE ON FULL TIME FIRE CHIEF POSITION DESCRIPTION
AND CONVERSION OF BYLAWS TO STANDARD OPERATING PROCEDURES
A. Full-time Fire Chief Position
ACTION TO BE CONSIDERED:
To acknowledge the Full-time Fire Chief position description presented by the Fire Department's Full-time Fire
Chief Committee and to provide direction to staff on whether to proceed with the recruitment of a Full-time Fire
Chief in the fall of 2005.
FACTS:
- The Full-time Fire Chief Committee, which is made up of a cross section of the Eagan Fire Department,
has been meeting for the past 2-3 years to discuss the merits of having a Full-time Fire Chief. The
committee has now completed their work, and thus is prepared to present their recommendation to the City
Council.
- The Full-time Fire Chief position was included in the proposed 2006 General Fund Operating Budget,
which was preliminarily approved at the September 6, 2005 City Council meeting.
- Per the request of the City Council at the August 23, 2005 Special City Council meeting, a position
description for the Full-time Fire Chief is enclosed for the Council's consideration.
- One of the co-chairs of the Fire Department's Full-time Chief Committee will be present at the September
12 Special City Council meeting, along with the Chief Kriha and the Battalion Chiefs.
ATTACHMENTS:
- Enclosed on page through ~ is the position description for the proposed Full-time Fire Chief.
B. Conversion of Fire Department Bylaws to Standard Operating Procedures (SOP)
ACTIONS TO BE CONSIDERED:
To acknowledge the conversion of the Fire Department bylaws to Standard Operating Procedures, and to approve
the process of replacing the bylaws with Standard Operating Procedures, including review and recommendations
by the Fire Department's appointed committee and Human Resources Manager.
FACTS:
- The League of Minnesota Cities Insurance Trust (LMCIT) recently held a symposium for fire departments
across the state. Included in the symposium was clear direction from the LMCIT stating that a fire
department currently operating under bylaws must modify their organizational structure, policies, and
procedures in order that they are transitioning from their own organizational entities to City departments.
- The LMCIT strongly encouraged cities to abolish Fire Department bylaws, and rather, adopt Standard
Operating Procedures (SOP) in order that the Fire Department operates in a manner consistent with other
City departments.
- Following the recommendations of the LMCIT, the City Administrator, City Attorney, and Human
Resources Manager met with the executive board of the Fire Department to communicate why the bylaws
must be converted to SOP.
- The Board acknowledges the need to change from bylaws to SOP.
Agenda Information Memo
September 12, 2005
Page 2
- It is suggested that the committee of the Fire Department, along with the City's Human Resource Manager,
review the SOP over the next several months to clarify the intent and make any necessary updates to the
SOP.
ATTACHMENTS:
- Enclosed on page is a memo from the City Attorney dated August 22, 2003, which communicates to
the then Fire Chief, Craig Jenson, the LMCIT's position regarding the conversion of the bylaws into a form
consistent with the City of Eagan's overall administration.
- Enclosed on page ~ is a memo from City Attorney Dougherty summarizing the legal rationale for the
change from the bylaws to the SOP.
- Enclosed on pages ~ through (~ is correspondence from Fire Chief Kriha and a memo from Battalion
Chief Diloia regarding the proposed change from the bylaws to the SOP.
City of Eagan, Minnesota
FILL-IN-ON-LINE JOB DESCRIPTION QUESTIONNAIRE (JDQ)
1. POSITfON SUMMARY` ~ ~ ~.;
Briefly state a summary of your position and also identify its most important impact on the organization:
The Fire Chief is responsible for the overall operation, function and administration of the Eagan Fire Department fo
ensure the protection of citizens' life and property, including; fire fighting, firef-ghter training, emergency medical care,
rescue, disaster response and services, fire prevention, inspecfion/invesfigafion, and public education.
~1L ESSENTIAL JOB DUTIES AND RESPONSIBILITIES `' ~
Identify the essential duties and responsibilities of this position. Also explain the expected outcomes (results) from performing
such duties and responsibilities and how those outcomes (results) are measured.
ESSENTIAL DUTIES AND
RESPONSIBILITIES
Plans, directs, manages and
coordinates the activities of the Eagan
Fire Dept; (training, purchasing, budget,
human resource mgmt) to provide
quality service fo the community,
utilizing available resouroes.
Develops, coordinates, and supervises
the preparation, presentation and
implimenfation of the annual budget fo
ensure adequate funding fo meet the
needs of the department.
Directs and manages the fire inspection
process in all buildings within the City of
Eagan. Recommends and advocates for
the acquisition and construction of new
structures, or the remodeling or building
of new apparatus.
5/2004
EXPECTED OUTCOMES (RESULTS) ~ HOW ARE OUTCOMES EVALUATED
Staff are competent in fin: fighting skills
& express satisfaction with leadership.
State of the art equipment & fleet is
aquired and maintained.
Mgmt efforts result in effective and
efficient use of capital equipment &
human resources.
Sufficient funding is available to
purchase & maintain high quality
equipment facilities, vehicles, fleet &
staff.
100% compliance with State and local
codes and ordinances.
100% enforcement of all City
ordinances and codes related to
buildings and city structures. Ensure
safe structures and healthy work
environments.
Coordinates construction/remodeling
with Community Development Dept,
Supervises and directs the City Fire
Marshall and City Fire Inspector/s.
Directs Fire Marshall and Fire
Inspector/s to develop, implimenf and
update (Fire) Preplans for all
appropriate city structures on an
identified rotating basis .
Fire Depf Committee members including
Department Truck Committee.
Inspection standards shall be developed
& implimenfed to ensure incident
mitigation.
May establish, maintain, and command
large scale emergancy operations. May
6e responsible for coordinating multi-
jurisdicfional agency involvement.
May assume command of any frre
scenelncident as required and
personally directs frrefighting acfvities
through subordinate officers.
Chief is responsible to maintain the 24
hr/day, 7 day/wk department operation.
The Chief will be available by pager or
other communication methods 24/7.
Directs, manages, supervises and
provides for the recuitment, selection,
hiring, training, performance evaluation,
and discipline of all fire department
personnel in accordance with City and
Fire Dept guidelines and policy.
Promotes community relations through;
development of community awareness
programs and fire prevention programs.
Ensure command structure is created &
implimenfed. Command and formal
authority is established at the onset of
the incident by the Chief or designee.
Fire personnel are on site in a timely
manner and proper performance is
maintained.
Chief/designee responds in a Timely
manner to alt requested assistance.
Proper performance and readiness of all
staff is ensured through compliance with
regard to attendance at training,
performance evaluations are completed
in a timely manner.
Grievances and complaints are resolved
of the lowest level possible, following
City/Depf policy/practice .
Representatives of the Eagan Fire Depf
portray a positive image that fosters
cooperation and support fo the public,
media and government agencies.
New programs are initiated to address
fire prevention. Staff participate in
events such as demonstrations,
presentations fo community groups,
schools and other organizations or
insfitufions.
An effective working relationship will be
established and maintained with the
City's Communications Director.
Proper mitigation is accomplished with
minimal negative impact on Dept
resources. MinimaUno injuries to
equipment or personal property.
Persons! accountability and safety
practices are adhered to. Equipment is
properly utilized & available.
Stakeholders such as Police, ~ other
City officials will express satisfaction
with communication between Them and
the Fire Depf .
Supervision end effective leadership
results in a competent, professional
sfaff.May participate in Inspections of
commerical buildings in order to support
incident mitigation & provide feedback
to assigned Inspectors.
Media and public express positive
working relationships with Fire Dept.
Information disseminated from the Fire
Dept to the media/public is timely, well-
defined and accurate.
Fire Prevention Officer is seen as a
resource to the community.
5r2oo4
II. ESSENTIAL JOB bUTIES AND RESPONSIBILITIES -continued
Identify the essential duties and responsibilities of this position. Also explain the expected outcomes (results) from performing
such duties and responsibilities and how those outcomes (results) are measured.
ESSENTIAL DUTIES AND
RESPONSIBILITIES EXPECTED OUTCOMES (RESULTS) HOW ARE OUTCOMES EVALUATED
~lll. FORMAL PREPARATION J EXPERIENCE
'Please answer the following based on the most representative combination of formal preparation and relevant experience to
ual' for this position:
1. Formal academic preparation (or equivalent) to uali for this position.
Bachelor's Degree required in Management, Fire Science, or related freld.
2. Length and type of relevant experience required to uali for this position.
Minimum of 10 years of experience as a Fire Fighter, including a minimum of 5 years as a Fire Offrcer.
3. Identify any licenses or certifications required to uali for this position. (Be Speck)
Fire Fighter Il or equivalent state recognized cert~cafion. First Responder, Hazardous Materials Operations, MN
CDL -within 6 months of employment.
4. Note the additional training, if any, that is desirable for this position. (If none, put none)
Successful completion of at least 10 or more State or National Training classes and proof of attendance within the
past 5 years.
5/2004
IV. DECISION MAK{NG ` ~` "
Please identify the most important decisions you make in performing the essential duties and responsibilities of this position.
Also identify who, if anyone, reviews these decisions and what the intended impact of these decisions is on the department
and/or other departments.
WHO, tF ANYONE, REVIEWS WHAT IS THE INTENDED IMPACT OF
EXAMPLES OF DECISIONS THESE DECISIONS? THESE DECISIONS?
Must be competent to make decisions City Administrator, City Council Financial respurces are allocated to
regarding a budget involving $ 1.1 maintain operations.
million annualty.
To Employment related and disciplinary Fire Board of Directors. Decisions are in compliance with all
decisions of 1 DO + paid volunteers. City AdmtntstrationMuman Resources Federal and State taws.
as necessary
Strategic Management decisions for the Fire Board of Directors To ensure appropriate vision and
current and future operations of the Fire mission of the department.
Department.
~~%. THINKING CHALLENGES AND PROBLEM SOLYI~NG
Please identify typical examples of thinking challenges you face and problems you solve on a regular basis in perfonning
essential responsibilities of this position. Also identify other work colleagues, if any, that are regularly involved in facing and
solving these same challenges and / or problems.
5/2004
Vl WORK RELAT~ONSHfPS
Please identify the most typical work relationships you develop and maintain with individuals, functions or organizations (inside
or outside the organization) in performing the essential responsibilities of this position. Also identify the purpose of these work
relationships, i.e. information exchange, project completion /coordination, getting or giving work direction or supervision, etc.
TYPICAL WORK RELATIONSHIPS PURPOSE OF THE RELATIONSHIP
Fire Fighters, Fire Administrative employees
City Officials, Department Directors
Public
Media
Police
Emergency Personnel
Fire Inspectors
VII. WpRK ENVIRONMENT ~ -:
Please check below the ical characteristics of the regular, ongoing work environment of this position. Estimate percentages
,where requested:
® Inside (sheltered) 90 % ®Noise ®Travel required
® Outside work 10 % ®Fumes, odors
® Temperature extremes ®Hazards(Examples)
® Required attendance at evening /off-hours meetings
® Other (Explain) Reouired attendance at evening and weekend training events. Hours of work expected will typically
exceed 40 hours per week.
Are there special physical requirements to regularly perform your position, e.g. hand/eye coordination, visual acuity,
strength, etc.
® Yes ^ No
If yes, explain: Must meet the physical testing requirements for a Fire Fighter established by the department.
5/2004
VIII:.. SUPERVISION /.MANAGEMENT. _,
~ Identify below any direct, ongoing responsibility for work direction, training, project management or true supervision of others:
Do you:
YES NO
Directly Supervise Others? ® ^
Plan, conduct and sign off on Performance Reviews? ® ^
Do project management? ® ^
Provide regular, ongoing training to others? ® ^
What are the titles of the positions, if any, you directly supervise? Fire Fighters. Office Staff. Fire Marshall, Flre
Insaector/s.
How many individuals hold these positions, if any, that you directly supervise? 100+
If you are not a supervisor, do you:
Provide regular and ongoing work direction to others? YES ^ NO ^
If yes, to whom and for what purpose?
1X. 'ADDITIONAL RELEVANT INFORMATION ON'YOUR`POSITION ' - .
Please provide additional relevant information, other than what is already included in this questionnaire, that you believe is
required to fully understand the essential responsibilities of this position.
5/2004
SEVERSON, SHELDON, DOUGHERTY
& MOLENDA, P.A.
TO: Craig Jensen, Fire Chief
FROM: Michael G. Dougherty, City Attorney
DATE: August 22, 2003
RE: LMCIT -Fire Department Constitution and Bylaws
Recently, the League of Minnesota Cities Insurance Trust (LMCIT), the City of Eagan's
insurance carrier, provided its insureds with information outlining issues that may involve cities
and volunteer fire departments. Within the information from LMCIT, as it affects the City of
Eagan, is the concern that the City recognize the fire department as a department of the City and
not as a separate organizational entity. As I mentioned to you, our office agrees with the position
of the LMCIT, and as such, have advised the City Administration about the need to convert the
organizational structure and the fire department's policies and procedures into a form that
conforms to and is consistent with the City of Eagan's overall administration.
The purpose behind the LMCIT's position is to recognize the potential exposure and liability of
the City in matters that may involve the fire department, its training, response, administration
and the protection of the taxpayers' assets. Over the•next several months, with the department's
assistance and the efforts of the human resource department, we hope to outline the effects of the
transition from a organizational entity to a City department, and to present the City Council with
a proposal to reflect as near as possible the present operation, but under the City administration.
As we go forward with the process, if you have any questions, please do not hesitate to be in
contact with our office.
MGD/j It
cc: Tom Hedges, City Administrator
Holly Duffy, Human Resources Director
9
SEVERSON, SHELDON, DOUGHERTY
& MOLENDA, P.A.
TO: Tom Hedges, City Administrator
FROM: Michael G. Dougherty, City Attorney
DATE: September 9, 2005
RE: Fire Department Bylaws
ACTION TO BE CONSIDERED
To approve (deny) the process of replacing the Fire Department's Bylaws with standard
operating procedures.
Over the years, the Fire Department has operated under Bylaws. The Bylaws contain
such things as qualification for membership and grievance procedures, etc. Recently,
members of the Fire Department attended a seminar hosted by the League of Minnesota
Cities which included discussion concerning the legality and functionality of independent
bylaws. In order to avoid and lessen potential liability issues, the League of Minnesota
Cities Insurance Trust strongly recommends that fire departments operate within the
framework of the city through the use of standard operating procedures. The City
Attorneys' office also strongly recommends that the Bylaws be revoked and that pertinent
provisions therein that relate to the operation of the Department be structured within
standard operating procedures.
Under the City Code, the City Council is responsible for the internal structural
organization of the Fire Department, including the written rules and regulations for the
Department. The executive committee of the Fire Department has voted to proceed with
writing standard operating procedures. The ultimate objective of the process is to provide
for an operating mechanism for the Fire Department in concert with other policies and
procedures of the City and to eliminate the Bylaws so as to reduce the City's exposure to
liability.
MGD/j It
l~
Fire Department
September 8, 2005
Robert Kriha
CHIEF
Dave Diloia Mr. Tom Hedges
BATTALION CHIEF City Administrator
City of Eagan
Patrick Diloia 3830 Pilot Knob Road
BATTALION CHIEF Eagan, MN 55122
Dear Mr. Hedges:
3795 Pilot Knob Road The Executive Board of the Eagan Fire Department has unanimously agreed
Eagan MN 55122 to incorporate the department Bylaws into our existing Standard Operating
s51.s75.5soo pnone Procedures (SOP) Manual. The Board received a recommendation from both
651.675.5910 fax the League of Minnesota Cities and our City attorney to make these changes
651.675.5086TDD in order to conform to current Minnesota State law regarding this issue.
Www.cityofeaga".°°m We (the Board) are looking to the City Council for the authority to proceed with
this incorporation. We would then be able to proceed with committee and
Board participation in the coming months to update said SOP Manual and
Pat Geagan bring that back to the Council for their final approval.
MAYOR
Thank you for your attention to this matter.
Peggy Carlson
Cyndee Fields Sincerely,
Mike Maguire /,~'r_ ' ~y
Meg Tilley ~c-~" V ~ ~
COUNCIL MEMBERS
Robert J. Kriha
Fire Chief
Thomas Hedges
CtTr ADMINISTRATOR RJK/pjs
enc.
THE LONE OAK TREE
The symbol of
strength and growth
in our community.
Eagan Fire Department
MEMO
DATE: September 8, 2005
T0: Tom Hedges
FROM: Battalion Chief Dave Diloia
SUBJECT: Bylaws/SDP's
Per our conversation yesterday, I just wanted to clarify my vision for how the incorporation of the Bylaws
and SOP's would transpire.
If the City Council gives us approval for the incorporation, we would have involvement both from a
committee and the Executive Board in the process.
2. The committee in charge of this change would meet at least monthly to review SOP's and suggest
any changes they deem necessary.
3. The committee would submit a packet of suggested changes to the Executive Board each month
at their regularly-scheduled meeting. They would then have 30 days to review the packet and
discuss at their meeting the following month.
4. Once the SOP manual has been thoroughly reviewed, the Board and the department would
submit the manual to the City Council for their approval.
Using this scenario, the firefighters would have at least four avenues for input into any changes to the
SOP Manual using our existing chain of command, which is:
1. Talk to an Officer
2. Talk to their Station Commander
3. Talk to a Battalion Chief
4. Talk to the Executive Board
5. Talk to the Chief
If you need any further information or have any questions regarding my take on the process, please feel
free to call me.
David Diloia
Battalion Chief
1~
Agenda Information Memo
September 12, 2005 Special City Council Meeting
IV. COMPREHENSIVE GUIDE PLAN-PARK DESIGNATION OPTIONS
ACTIONS TO BE CONSIDERED:
To discuss possible modifications to Permitted Uses in the Park (P) Zoning District.
To direct staff to initiate an Ordinance Amendment based on discussion at the Special Council
meeting.
FACTS:
- The City Council, City Attorney and the LMCIT attorney have discussed the possibility
of amending the City Code to provide additional permitted uses in the Park (P) Zoning
District.
- The City Attorney's office has offered the following as possible additional permitted
uses:
o Nursery
o Churches
o Schools (with discussion ofadding universities and co/%ges)
o Single family "executive" lots containing not less than 4 acres and a 5%
maximum lot coverage, provided it is located in an area outside of 60
DNL
- If very low residential use were to be considered, the Council may wish to discuss the
merits of requiring or permitting clustering as a means of concentrating improvements
and maximizing open space.
ATTACHMENTS (1):
Current Park (P) Zoning District City Code Section on pages ~ through
~~
LAND USE REGULATIONS (ZONING) § 11.60
15. Effect of final planned development approval.
a. Except as provided in this section, no building permit shall be i~s~ued for any
building on land for which a plan for a planned development has been
approved which does not conform to the approved final plan.
4
b. Except as provided in this section, development of land~for which a planned
development has been approved which does notseonform to the approved
final plan shall only be allowed after one of the' following:
1. Amendment to the approved final plark`of the planned development by
the city council in the same manner as required for approval of a
planned development. f~-'Y
,y
2. Term of the approved planned' development by the city council after
r
notice and public hearing in the same manner as required for approval
of the planned development. The council may further condition the
vacation of a planned„development in order to better protect the public
health, safety and welfare.
16. Termination. Upon expiration of the specific time period approved by the city for
total development of a planned development, the subject area shall become a
permanent planned development district, and the conditions, provisions and
restrictions of the final development plan shall continue to govern the use of the
land. Provided~~fevertheless, that if a planned development is not completed
within the rewired time period, the planned development district classification
shall automatically terminate as to that portion of the district that has not been
developed`.~'The requirements and provisions of the underlying zoning classifica-
;
tion i}x its entirety shall thereafter apply to the undeveloped area. Any factual
disputes arising under this subsection shall be presented to and determined by a
,.
ffi'ajority vote of the city council.
,c,~:
17r~;'' Penalties for violation. Each provision of this Code is separable, and a judicial
sr~'r~ declaration of invalidity of any one provision thereof shall not invalidate the
y.~~' remainder. Any person who shall violate any of the provisions of this Code shall
be guilty of a misdemeanor and upon conviction thereof shall be punished by a
-~--_
. , ~. s:~-E<-firm-tfo~exceedin "minimums as adopted by Minnesota State Statute.
Subd. 19. P Park District.
A. Purpose. The Park District is intended for public and private park uses and related
facilities.
B. Permitted uses.
Camping grounds.
Freestanding satellite dishes, subject to the regulations thereof elsewhere in this
chapter.
Golf courses.
Supp. No. 10
CD11:71
I~-
§ 11.60
EAGAN CODE
4. Parks.
5. Playgrounds.
6. Public structures.
7. Swimming pools.
8. Tennis courts.
C. Conditional uses.
1. Freestanding towers.
2. On-sale beer associated with golf course clubhouses.
3. Temporary on-sale beer.
4. Gun clubs.
D. Permitted accessory uses.
1. Temporary outdoor events, subject to regulations thereof elsewhere in this
chapter.
Subd. 20. PF Public Facilities District.
,~ - - -
.. ,,;:
A. ,~urpnse:. They purposes of 'this`-district is for city, `state; and- federal governn~nt
buildings, public and private schools and hospitals.
B. Permitted uses.
1. Antennae on a city water reservoir tank or tower and public utility tower
antennae, subject to regulations thereof elsewhere in this chapter.
2. Building mounted antennae, subject to regulations thereof elsewhere in this
chapter.
3. Churches.
4. Freestanding satellite dishes, subject to the regulations thereof elsewhere in this
chapter.
5. Governmental buildings.
6. Hospitals.
7. Public utility structures and equipment.
8. Satellite dishes, subject to regulations thereof elsewhere in this chapter.
,.
9. Schools.
B.[1]. Conditional uses. ~'%'
1. Daycare facilities associated with churches.
2. Electrical substations and other public utility facilities.
~.
3. Freestanding~ower and wind energy conversion systems, subject to regulations
thereof elsewhere in this chapter.
Supp. No. 10 CD11:72
~~
Agenda Information Memo
September 12, 2005, Eagan City Council
V. IN HOME MASSAGE THERAPY LICENSING
ACTION TO BE CONSIDERED:
• To provide direction to staff regarding the citizen request for an ordinance
amendment to allow in home massage therapy licensing and a provision to allow
massage therapy students to practice in Eagan.
FACTS:
• At the June 7, 2005 Listening Session Rebecca Guthrie, massage therapist
teacher, requested the Council consider allowing massage therapists to conduct
business out of their homes and Council directed staff to place the item on a
future workshop agenda.
• Ms. Guthrie presented a proposal providing for Business Regulation and
Licensing for Therapeutic Massage in the City of Eagan, Minnesota.
The proposal represents elements of ordinances from surrounding cities that are of
importance to Ms. Guthrie. It differs from Eagan's current regulation in that it
provides for: 1) "In Home" licensing (licensed as therapy establishments); 2)
availability of "call out" massages to businesses or private homes; and 3) a
provision allowing students or interns to practice massage therapy. While not
specifically noted in the proposal Ms. Guthrie has expressed interest in a City
exam for licensing therapists patterned after one in St. Paul, although with
different testing standards.
• Eagan has amended its Code provisions covering Massage Therapy and Massage
Therapist Establishments a number of times over the years primarily to reflect
changes in the industry and in response to requests of practitioners. The most
recent discussions centered on the cost of doing business in Eagan compared to
other cities. Previous to that, education/training requirements for therapists were
changed and the provision to allow temporary off-site massage therapy was
added. Provisions pertaining to enforcement have not been revised since the first
adoption of the licensing requirements.
• The survey cities include those suggested by Ms. Guthrie; Bloomington, Inver
Grove Heights, Rosemount, Prior Lake, Savage, and Burnsville and some added
by staff to include other larger cities; Edina, Plymouth, Coon Rapids, and
Minnetonka and St. Paul because of the reference to their testing.
~-P
• Eagan currently has 70 licensed therapists and 9 licensed therapy establishments.
• Ms. Guthrie has been notified of the meeting and plans to be in attendance.
ISSUES:
• The proposal as presented does not seem to provide for the licensing of "Massage
Therapy Establishments" but only for the licensing of "Massage Therapists." As
a result of a subsequent telephone conversation, it seems that establishments
should be licensed and should include "In home" businesses.
• Land use/zoning concerns when licensing "homes" as Massage Therapy
Establishments.
• Impact on current licensed "Massage Therapy Establishments" operating in
commercial or industrial districts.
• City Council expectations of public safety monitoring of establishments/licensees.
Eagan's current Code calls for access by Police Officers that would probably not
be available in "In Home" establishments and certainly not available in "call out"
situations.
ATTACHMENTS:
• Enclosed on pages ~ through ~ 1 is a copy of a memo from
Deputy City Clerk Pepper summarizing a survey of Massage Therapy
Establishment and Massage Therapist Licensing in selected cities.
• Enclosed on page ~~ is a copy of a summary of Eagan's current City Code
provisions covering Massage Therapy Establishment and Massage Therapist
Licensing.
• Enclosed on pages c~ 1_ through ~_ is a copy of Eagan's current City
Code provisions covering Massage Therapy Establishment and Massage Therapist
Licensing.
• Enclosed on pages ~ through ~~ is a copy of the proposal from Ms.
Guthrie.
1~
City of Eagan ~
To: GENE VANOVERBEKE, DIRECTOR OF ADMINISTRATIVE SERVICES
From: MIRA PEPPER, ADMINISTRATIVE SECRETARY /DEPUTY CLERK ~~
Date: AUGUST 5, 2005
Subject: MASSAGE THERAPY ESTABLISHMENT AND
MASSAGE THERAPIST LICENSING
Per your request, I conducted a survey involving eleven (11) metro area cities regarding
licensing regulations for massage therapy establishments and massage therapists.
A grid is attached detailing the information from each city.
A summary of the information is as follows:
• Nine (9) cities license massage therapy establishments.
o The City of Edina has a limit offour licensed establishments within the city.
• Seven (7) cities allow massage therapy businesses to be conducted as in-home
businesses.
• Seven (7) cities allow call-out or in-home massages.
• Nine (9) cities license massage therapists.
o One (1) city only registers the therapists and one (1) does not require any type of
license or registration.
• One (1) city allows student or intern practitioners.
• One (1) city conducts testing for massage therapist applicants.
A copy of each city's Code pertaining to massage therapy establishments and massage therapist
licensing is also attached.
Let me know if you need any further information.
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Massage Therapy
Establishment and Therapist Licensing
Brief Summary -See Complete Code Sec. 6.39
July 21, 2005
Eagan Licensing Requirements-General
- Certain prohibited establishments or operations
1. Sauna
2. Rap parlor or conversation parlor or adult encounter group or adult
sensitivity group, etc.
3. Escort service or modeling service or dancing service or hostess
service, etc.
4. Similar adult-oriented service
Massage Therapy Establishment
- Massage therapy establishment must be licensed
1. Investigation fee covering the establishment and one massage
therapist of $300 (2005)
2. Fixed premise in commercial or industrial district
3. Only massage therapists licensed by Eagan may practice massage
4. Numerous physical requirements/limitations on premise
5. Cannot be open for business between the hours of 10:00 p.m. and
6:00 a.m.
6. Does not apply to a health care facility within certain parameters
7. Requires on-premises manager or agent
8. Annual licensing fee of $300 for 2005 (rate includes the annual
license fee for one massage therapist)
- Temporary off-site permitting
Massage Therapist
- Massage therapist license required
1. Investigation fee of $100 (2005)
2. License fee of $25 (2005)
3. Education/training requirements
Temporary off-site permit
- Application fee $15 (2005)
- Restricted to permitted premise
- Subject to all provisions of the code section covering establishments and
therapists
- Short term promotional or contract events (not to exceed seven
consecutive days)
OTHER BUSINESS REGULATION AND LICENSING § 6.39
Sec. 6.39. Massage therapy establishment and massage therapist licenses.
Subd. 1. Statement of policy. The city recognizes and accepts therapeutic massage, as
distinguished from other forms of massage, as a scientific health care and/or maintenance
technique or procedure for the human muscles, tendons, tissues and the like. The city,
however, equally recognizes the potential for illicit massage operations or establishments in
the wake of legitimate, professional therapeutic massage establishments. Accordingly, in order
to prevent or protect against the existence of illicit massage establishments or operations in
the city and to protect the public's health, safety and welfare, the city deems it necessary to
regulate therapeutic massage establishments and massage therapists through the licensing
process.
Subd. 2. Definitions. As used in this section, the following words and terms shall have the
meanings stated:
A. Massage therapy or therapeutic massage means a scientific health care or health
maintenance technique or procedure carved out by a massage therapist involving the
massaging and kneading of human skin, muscles and tissues for the purpose of easing
mental and physical tension, the breaking up of fatty tissues and muscle spasms, and
the improvement of circulation through the body.
B. Massagetherapy establishment means any room or rooms wherein persons may, for a
fee or other consideration paid either directly or indirectly, receive a therapeutic
massage.
G Massage herapist means a person, other than a person licensed as a medical doctor,
chiropractor, osteopath, podiatrist, licensed nurse, physical therapist, athletic director
or trainer, or beautician or barber who confines his treatment to the scalp, face and
neck, who for compensation practices and provides therapeutic massage.
Subd. 3. Prohibited establishments or operations. Any use, establishment, operation or
business whose massage therapy services include sessions offered to adults, conducted in
private by members of the same or the opposite sex, and employing personnel with no
specialized training and susceptible- to operation in a manner contravening, subverting or
endangering the morals of the community by being the site of acts of prostitution, illicit sex
and occasions of violent crimes are prohibited, including but not limited to:
A. A sauna, defined as any public facility used for the exclusive purpose of bathing,
reducing or relaxing, utilizing steam as a cleaning, reducing or relaxing agent.
B. A rap parlor or conversation parlor or adult encounter group or adult sensitivity group,
defined as any person, establishment or business advertising, offering, selling, trading
or bartering the services of itself, its employees or agents as nonprofessional counse-
lors, teachers or therapists who may talk to, discuss or have conversation with patrons
or who deal in any way with patrons' physical senses, whether or not other goods or
services are simultaneously advertised, offered, sold, traded or bartered and regard-
less of whether said goods or services are also required to be licensed.
Supp. No. 10 CD6:23
~r
§ 6.39
EAGAN CODE
C. An escort service or modeling service or dancing service or hostess service are defined
as any person, establishment or business advertising, offering, selling, trading or
bartering the services of itself, its employees or agents as hostesses, models, dancers,
escorts, dates or companions, whether or not goods or services are simultaneously
advertised, offered, sold, traded or bartered and regardless of whether said goods or
services are also required to be licensed.
D. Any other similar adult-oriented service that falls within the uses or establishments
described in this subdivision but that are operated under different names.
Subd. 4 Massage therapy establishment.
A. License required. It is unlawful for any person to operate a massage therapy
establishment without a license therefore from the city. It is unlawful for any person
to practice therapeutic massage therapy in any place except upon a licensed premises,
unless a temporary off-site permit is issued in accordance with the provisions of this
Section.
B. License application. All initial applications for licenses to operate massage therapy
establishments shall be accomplished by a nonreturnable investigation fee. This fee
shall also cover the investigation fee for one massage therapist. Applications shall
contain the names and addresses of the owners, lessees and operators of the applicant,
together with a description and location of the premises. The application shall also
include information as to any convictions of any crime or offense committed by
applicant, together with such other information as the city may require before
consideration of the application. All applications by corporations shall include the
names and addresses of all persons having a beneficial interest therein. An investiga-
tion by the building inspector shall be conducted of all premises proposed to be licensed
before consideration by the city. The police department shaIl conduct an investigation
of all persons proposed to be licensed before consideration by the city. All applications
shall thereafter be considered by the city.
C. Restrictions and regulations.
1. Licenses shall be granted only for operation on fixed premises which must be
located in a commercial or industrial district as established by the zoning chapter.
2. Licenses shall be granted only upon a showing of compliance with all laws of
sanitation.
3. No beer, liquor, narcotic drug or controlled substances, as such terms are defined
by state statutes or the City Code, shall be permitted on licensed premises.
4. Volation of any law or regulation relating to building, safety or health shall be
grounds for revocation of any license.
5. No doors of massage rooms, when occupied by one or more persons, shall be
locked. All locks, if any, shall be keyed only from the exterior of the massage
rooms.
Supp. No. to CD6:24
OTHER BUSINESS REGULATION AND LICENSING § 6.39
6. Only massage therapists who are licensed by the city shaIl practice therapeutic
massage.
7. No massage therapy establishment shall discriminate between persons on the
basis of race, color, creed, seg or national origin or ancestry.
8. All massage therapy establishment licensees must comply with any and all
amendments to this chapter. Failure to do so shall be grounds for revocation of
any license.
D. Unlawful acts.
It is unlawful for any licensee to fail to at all times observe all restrictions,
regulations and maintenance requirements contained in this section.
It is unlawful for any licensee to be open for business between the hours of 10:00
p.m. and 6:00 ~a.m. of any day.
E. License condition and unlawful acts.
All premises licensed under this section shall, during all operating hours, be open
to inspection by any health or police officer to determine whether or not this
section and all other laws are being observed. All persons, as a condition to being
issued such license, consent to such inspections by such officers and without a
warrant for searches and seizures.
2. It is unlawful for any licensee or agent or employee of a licensee to hinder or
prevent a police or health officer from making such inspection.
F. Exception. This section shall not apply to a health care facility (1) owned by a
municipal corporation organized under the laws of the state, or (2) owned by the state
or any of its agencies, or (3) licensed by the state.
G. Manager or agent. Before a license is issued under this section to an individual who is
a nonresident of the city, to more than one individual whether or not they are residents
of the city, or to a corporation, partnership, or association, the applicant or applicants
shall appoint in writing a natural person as its on-premises manager or agent. Such
on-premises manager or agent shall, by the terms of his written consent, (1) take full
responsibility for the conduct of the licensed premises, and (2) serve as agent for
service of notices and other process relating to the license. Such manager or agent
must be a person who, by reason of age, character, reputation, and other attributes,
could qualify individually as a licensee. If such manager or agent ceases to be located
at the licensed premises or ceases to act in such capacity for the licensee without
appointment of a successor, the license issued pursuant to such appointment shall be
subject to revocation or suspension.
H. License fee. The annual license fee shall be determined by resolution of the city council.
This fee shall also cover the annual license fee for one massage therapist.
Supp. No. 10 CD624.1
§ 6.39
EAGAN CODE
Subd. 5. Massage therapist license.''
A. License required. It is unlawful for any person to practice therapeutic massage therapy
without a license therefor from the city.
B. License application. All initial applications shall be accompanied by a nonreturnable
investigation fee. Applications shall be on a form provided by the city and contain all
information requested thereon and shall contain such other information as the city
may, from time to time, require. All applicants shall be at least 18 years of age.
C. Restrictions and regulations.
1. A massage therapist license shall not be issued unless the applicant provides
proof of the following:
(a) A diploma or certificate of graduation from 'a school approved by the
American Massage Therapist Association or other similar reputable mas-
sage association; or
(b) A diploma or certificate of graduation from a school, which is either
accredited by a recognized educational accrediting association or agency or
is licensed by the state or local government agency having jurisdiction over
the school; or
(c) A certificate of National Certification for Therapeutic Massage and Body
Work by the National Certification Board of Therapeutic Massage and Body
Work, an affiliate of the American Massage Therapy Association.
D. License fee. The annual license fee shall be determined by resolution of the city council.
Subd. 6. Temporn~y of f--site permit.:':'
A. Notwithstanding the provision regulating a massage therapy establishment license
hereunder, a massage therapist licensed by the City may provide massage therapy on
non-residential premises other than the licensed premises upon the issuance of a
temporary off-site permit by the City Council. An application for a temporary off-site
permit, which shall be on a form provided by the City, shall be completed with all
information requested thereon and submitted to the City.
B. A temporary off-site permit shall be subject to the following requirements:
1. The off-site massage therapy shall be conducted only at the premises under the
permit.
2. The permit shall be subject to all provisions of this Section governing licensed
massage therapy establishments and licensed massage therapists.
3. The permit may be issued only for short term (not to exceed seven consecutive
days) promotional or contract events. A copy of the contract must be provided at
the time of permit application. The permit runs concurrent with the massage
therapist license year.
(Code 1983, § 6.39, eff. 1-1-83; Ord. No. 79, 2nd series, eff. 4-14-89; Ord. No. 186, 2nd series,
eff. 10-13-94; Ord. No. 229, 2nd series, eff. 3-4-97; Ord. No. 261, §§ 1-4, 6-25-98; Ord. No. 316,
2nd series, §§ 1, 2, eff. 8-30-01; Ord. No. 358, 2nd series, eff. 5-29-03)
Supp. No. 10 CD6:24.2
~~
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Proposal Z~~ ~6h(15~1 C~S~- 3(~ -~' ~ ~
Business Regulation and Licensing for
Therapeutic Massage
In the City of Eagan, Minnesota
Section I: PURPOSE.
The purpose of this proposal is to protect the health, safety and welfare of the
community. In order to accomplish this it is necessary to provide for the regulation and
licensing of persons who administer massages.
Section II: FINDINGS.
The City of Eagan makes the following findings regarding the need to license therapeutic
massage therapists and to prohibit all other types of massage businesses and services to
the public:
(a) Persons who have a bona fide and standardized training in therapeutic massage,
health, and hygiene can provide a legitimate and necessary service to the general
public
(b) Health and sanitation regulations governing massage therapists can minimize the
risk of the spread of communicable diseases and can promote overall health and
sanitation.
(c) License qualifications for the restrictions on massage therapists can minimize the
risk that such businesses and persons will facilitate prostitution and other criminal
activity in the community.
(d) The training of professional massage therapists at accredited institutions is an
important means of ensuring the fullest measure of protecting the public health,
safety and welfare.
Section III: DEFINITIONS.
As used in this proposal, the following words and terms shall have the following
meanings unless the context clearly indicates otherwise:
Massage Therapy or Therapeutic Massage - a scientific health care or health
maintenance technique or procedure carried out by a massage therapist involving the
kneading, rubbing, stroking, tapping, vibrating, stimulating or rolling of the external parts
of the human body with the hands or with the aid of any mechanical or electrical
apparatus, or other appliances or devices for the purpose of easing mental and physical
tension, the breaking up of fatty tissues and muscle spasms and the improvement of
circulation through the body.
~~
Massage Therapist - an individual, other than a person licensed as a medical doctor,
chiropractor, osteopath, podiatrist, licensed nurse, physical therapist, athletic director or
trainer, or beautician or barber who confines his treatment to the scalp, face and neck,
who practices or administers therapeutic massage to the public and who can demonstrate
to the Issuing Authority that he or she:
(a) is at least eighteen (18) years of age.
(b) has completed five hundred (500) hours of certified therapeutic massage training
from an accredited institution that has been approved by the Issuing Authority, or
has two (2) years of experience practicing massage therapy as established by an
affidavit and can document within one (1) year of obtaining the license that he or
she has completed five hundred (500) hours of certified therapeutic massage
training from an accredited institution. If no such documentation can be
established at the time of license renewal, the license shall not be renewed and the
individual who received the license based upon experience is precluded from
receiving a license in the future unless the individual has the requisite certified
hours.
(c) has current insurance coverage of one million dollars ($1,000,000) for
professional liability in the practice of massage;
Accredited Institution - an educational institution holding accredited status from the
North Central Association of Colleges and Schools (NCA) or another regional
accrediting agency approved by the United States Department of Education.
Issuing Authority -the City of Eagan, Minnesota -License Section.
Massage Therapist License - It shall be unlawful for any individual to practice,
administer, or provide massage services to the public within the City without first having
obtained a massage therapist license from the City of Eagan.
Section IV: EXCEPTIONS.
A Therapeutic Massage License is not required for the following persons and places:
(a) Persons licensed by this state to practice medicine, surgery, osteopathy,
chiropractic, physical therapy or podiatry, provided the massage is administered
in the regular course of the medical business and not provided as part of a
separate massage business.
(b) Persons licensed by this state as beauticians or barbers, provided such persons do
not hold themselves out as giving massage treatments and provided the massage
by the beautician is limited to the head, hand, neck and feet and the massage by
the barber is limited to the head and neck.
(c) ' Students of an accredited institution who are performing massage services in the
course of a clinical component of an accredited program of study, provided the
students are identified to the public as students of massage therapy. Students of
an accredited institution who perform massage services at clinics or other
~~
facilities located outside of the accredited institution must have at least one
hundred fifty (150) hours of certified therapeutic massage training prior to
performing the service outside of the institution and must be identified to the
public as a student of massage therapy.
Section V: LICENSE APPLICATION.
No person shall engage in the practice of massage nor shall any person administer or
practice massage commercially or for hire, or for the exchange of any valuable
consideration without first having obtained a license from the city. An application for a
massage therapist license shall be made on a form supplied by the Issuing Authority and
shall contain the following information:
(1) The applicant's name, date of birth, current address and home telephone number.
(2) The applicant's current employer.
(3) The applicant's employers for the previous five (5) years, including the
employer's name, address and dates of employment.
(4) The applicant's addresses for the previous five (5) years.
(5) Whether the applicant has ever been convicted of any felony, crime, or violation
of any ordinance other than a minor traffic offense and, if so, the time, place, and
offense for which convictions were had.
(6) Whether the applicant is a U. S. citizen or resident alien or has the legal authority
to work in the United States.
(7) Whether the applicant has ever used or been known by a name other than the
applicant's name, and if so, the name or names and information concerning dates
and places where used.
(8) Whether the applicant has met the definition of massage therapist in Section III
of this proposal.
Section VI: LICENSE FEES.
The annual fee for a massage therapist license shall be fifty dollars. All initial
applications shall be accompanied by a nonrefundable investigation fee of one hundred
dollars. Each application for a license shall be accompanied by payment in full of the
required license and investigation fees, if applicable.
Section VII: PERSONS INELIGIBLE FOR LICENSE.
No massage therapist license shall be issued to a person who:
(1) Is not eighteen (18) years of age or older at the time the application is submitted;
(2) Has been convicted of any crime directly related to the occupation licensed as
prescribed by Minnesota Statutes, Section 364.03, subdivision 2, and who has not
shown competent evidence of sufficient rehabilitation and present fitness to
perform the duties and responsibilities of a licensee as prescribed by Minnesota
Statutes, Section 364.03, subdivision 3;
~7
(3) Is not a citizen of the United States or a resident alien, or is legally prohibited
from working in the United States;
(4) Is not of good moral character or repute;
(5) Has knowingly misrepresented or falsified information on the license application;
(6) Cannot meet the definition of massage therapist in Section III of this proposal.
Section VIII: LICENSE RESTRICTIONS.
(a) Posting of License. A person licensed as a massage therapist shall have on such
person at all times therapeutic massage services are rendered the photo
identification card issued by the Issuing Authority.
(b) Licensed Premises. A massage therapist license shall entitle the licensed
therapist to perform on-site massage at a business, public gathering, private home,
or other site.
(c) Transfer of License Prohibited. The license issued is for the person named on
the approved license application. No transfer of a license shall be permitted.
(d) Coverage of Genitals During Massage. The licensee shall require that the
person who is receiving the massage shall at all times have his or her genitals
covered with anon-transparent material or clothing.
(e) Therapist Clothing Requirements. Any therapist performing massage shall at
all times have his or her breasts, buttocks, anus, and genitals covered with anon-
transparent material or clothing.
(fj Effect of License Suspension or Revocation. No licensee shall solicit business
or offer to perform massage services while under license suspension or revocation
by the City.
(g) Massage of Certain Body Parts Prohibited. At no time shall the massage
therapist intentionally massage or offer to massage the penis, scrotum, mons
veneris, vulva, or vaginal area of a person.
Section IX: SANITATION AND HEALTH.
(a) Paper/Linen Requirements. A licensed massage therapist shall provide single
service disposable paper or clean linens to cover the massage table, chair,
furniture, or area on which the patron receives the massage. If the massage table,
chair or furniture on which the patron receives the massage is made of material
impervious to moisture, such table, chair, furniture shall be properly sanitized
after each massage.
(b) Washing of Hands Required. The massage therapist shall wash his or her hands
and arms with water and soap, anti-bacterial scrubs, alcohol, or other disinfectants
prior to and following each massage service performed. '
Section X: LICENSE VIOLATIONS.
(a) Suspension or Revocation. The City Council may suspend or revoke a license
for a violation of:
~~
{1) Fraud, misrepresentation, or false statement contained in a license
application or a renewal application.
(2) Fraud, misrepresentation, or false statement made in the course of carrying
on the licensed occupation or business.
(3) Any violation of this proposal or state law.
(4) A licensee's criminal conviction that is directly related to the occupation
or business licensed as defined by Minnesota Statutes, Section 364.03,
subdivision 2, provided that the licensee cannot show competent evidence
of sufficient rehabilitation and present fitness to perform the duties of the
licensed occupation or business as defined by Minnesota Statutes, Section
364.03, subdivision 3.
(5) Conducting the licensed business in an unlawful manner or in such a
manner as to constitute a menace to the health, safety or general welfare of
the community.
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Agenda Information Memo
September 12, 2005 Eagan City Council
VI. HOUSING IlVIPROVEMENT DISTRICT
ACTION TO BE CONSIDERED:
To receive information concerning the potential adoption of a Housing Improvement
District Policy and direct action to a future Council agenda.
FACTS:
- The City Council was approached by the Cedar Bluffs Homeowners Association at a
listening session regarding the possibility of the City considering the establishment of a
Housing Assistance District/Area that would permit the Association to perform
improvements of private common property of the homeowners association and finance it
through City sponsored borrowing.
- Such districts are permitted under Minnesota Statutes and ,while they aze unique from
special assessments, function in a similaz manner, with the repayment of the cost of the
fmanced improvements being paid as a part of the property taxes for the units within the
association.
- The Cedar Bluffs Homeowners Association has met with staff from the City and Dakota
County CDA to discuss the possible application of the tool and whether other CDA
programs would be available to assist in the improvements. The Association continues
to consider its options in this regard, but has not yet submitted a petition at this time.
- To have a basis for considering such petitions, if and when they would be received, the
City Council authorized staff on August 16, 2005 to prepare a draft policy for
consideration.
- In reviewing the application of this tool, CDA staff indicated that the City of St. Louis
Pazk has a well developed program and policy. The draft City of Eagan policy makes
use of the St. Louis Park model.
- Like St. Louis Pazk policy, the City of Eagan draft policy requites a petition from a
minimum of 50% of the property owners, while the statute only requires a petition from
2S%. City and CDA staff believe that the higher requirement would be appropriate to
insure that there is strong support for the use of the tool by a majority of affected
property owners. In addition, statute permits the establishment of a district to be stopped
by submission of a petition by 35% of the affected property owners. The higher
requirement for initiation will minimize the likelihood of the submission of an opposing
petition.
ATTACHMENTS:
- Policy Draft on pages ~~~
- St~ ark Example of Fact Sheet and Application Process Outline on pages
'3~
CITY OF EAGAN
SEPTEMBER 12, 2005 DRAFT
HOUSING IMPROVEMENT AREA POLICY
I. PURPOSE
The purpose of this policy is to establish the City's position relating to the use
of Housing Improvement Area (HIA) financing for private housing
unprovements. This policy shall be used as a guide in processing and
reviewing applications requesting HIA financing. The City shall have the
option of amending or waiving sections of this policy when determined
necessary or appropriate.
II. POLICY
It is the policy of the City of Eagan to use HIA financing to assist private
property owners only in those circumstances in which the proposed private
projects address one or more of the following goals:
A. To promote neighborhood stabilization and revitalization by the removal
of blight and/or the upgrading of the existing housing stock in the
neighborhood.
B. To correct housing or building code violations as identified by the City
Code Enforcement Staff.
C. To maintain or obtain FHA mortgage eligibility for a particular
condominium or townhome association or single family home within the
designated HIA.
D. To increase or prevent the loss of the tax base of the City in order to
ensure the long-term ability of the City to provide adequate services for its
residents.
E. To stabilize or increase the owner-occupancy level within a neighborhood
or association.
F. To meet other uses of public policy, as adopted by the City of Eagan from
time to time, including promotion of quality urban design, quality
architectural design, energy conservation, decreasing the capital and
operating costs of local government, etc.
III. PROCEDURE
In order to be eligible for HIA financing through the City of Eagan the
association is to submit an application along with application fee as set from
time to time by resolution of the City Council. All HIA financed through the
City of Eagan should meet the following minimum approved criteria.
However, it should not be presumed that a project meeting these criteria
would automatically be approved. Meeting these criteria creates no
contractual rights on the part of any association.
A. The project must be in accordance with the Comprehensive Plan and
Zoning Ordinances, or required changes to the Plan and Ordinances must
be under active consideration by the City at the time of approval.
B. The HIA financing shall be provided within applicable state legislative
restrictions, debt limit guidelines, and other appropriate financial
requirements and policies.
C. The project should meet one or more of the goals stated in the Policy
section of this document.
D. The term of ht HlA should be the shortest term possible while still making
the annual fee affordable to the association members. The term of any
bonds or other debt incurred for the azea should mature in 20 yeazs or less.
E. The association in a HIA should provide adequate financial guarantees to
ensure repayment of the HIA financing and the performance of the
administrative requirements of the development agreement. Financial
guarantees may include, but are not limited to the pledge of the
association's assets including reserves, operating funds and/or property.
F. The proposed project, including the use of HIA financing, should be
supported by a majority (51%) of the owners within the association. The
association should include the results of a membership vote along with
petitions that indicate a 51% owner support to create the azea.
G. The association must have adopted a financial plan that provides for the
association to finance maintenance and operation of the common elements
within the association and along-range plan to conduct and finance capital
improvements therein, which does not rely on the subsequent use of the
HIA tool.
H. HiA financial assistance is a last resort financing and should not be
provided to projects that have the financial feasibility to proceed without
the benefit of HlA financing. Evidence that the association has sought
other financing for the project should be provided and should include an
explanation and verification that an assessment by the association is not
feasible along from letters from private lenders or other evidence
indicating lack of financing options.
I. The homeowner's association must be willing to enter into a development
agreement, which may include, but is not limited to, the following terms:
a. Establishment of a reserve fund
b. Staffing requirements
c. Annual reporting requirements
d. Conditions of disbursement
e. Required dues increases
f. Notification to new owners of levied fees
J. The improvements financed through the HIA should primarily be exterior
improvements and other improvements integral to the operation of the
project, e.g. boilers. In the case of a homeowner's association, the
improvements should be restrigted to common areas. The improvements
must be of a permanent nature. The association must have a third party
conduct a facility needs assessment to determine and prioritize the scope
of improvements.
K. HIA financing should not be provided to those projects that fail to meet
good public policy criteria as determined by the City Council, including:
poor project quality; projects that are not in accord with the
Comprehensive Plan, zoning, redevelopment plans and the City policies;
projects that provide no significant improvement to the neighborhood
and/or the City; and projects that do not provide a significant increase in
the tax base and/or prevent the loss of tax base.
L. The financial structure of the project should receive a favorable review by
the City's Financial Advisor and Bond Counsel. The review will include a
review of performance and level of outstanding debt of previous HIAs.
M. The average market value of units in the association should not exceed the
maximum home purchase price for existing homes under the State's first
time homebuyer program.
IV. RESPONSIBILITY
The Community Development Department shall have primary responsibility
for implementation and coordination of this policy.
V. AUTHORITY
The City of Eagan has the authority to establish HIAs under 1994 Minesota
laws, Chapter 587, Article 9, Section 22 through 31, and extended in 2005,
M.S. 428A.21
Within the HIA, the City has the authority to:
A. Make housing improvements
B. Levy fees and assessments
C. Issue bonds to pay for improvements
The City Council has the authority to review each HIA application which
includes scope of improvements, association's finances, long-term financial
plan, and at least 51 % membership support.
Date of Approval:
Signed:
Pat Geagan, Mayor
~~-
Housing Improvement Area
Finance Tool for Townhome and Condo Association
improvements.
A Housing Improvement Areas (HIA) is a defined area within a city where housing
improvements are made and the cost of the improvements are paid in whole or in part
from fees imposed on the properties within the area.
• Basically, the Association borrows low interest money from the City;
• Permanent, common area improvements aze completed; and
• Unit owners repay the loan through fees imposed on their properties, and collected
with property tax payments.
This tool can assist with the preservation of the city's existing housing stock.
Townhouses and condominiums were constructed primarily in the 1970's and 80's, and
comprise 12% of the City's housing stock. The City's Comprehensive Plan notes that
"there is a concern that maintenance may be underftfnded for some townhouse
associations and maintenance issues may arise in the future." As most of the buildings
are going on 30 years, deferred maintenance issues are becoming a concern.
Highlights of the HIA
• Associations must initiate the request.
Improvements must be common area improvements.
• This is last resort financing, used when associations have no other viable options for
raising money for improvements.
• Over 50% of the owners must sign a petition requesting the City Council to conduct a
public hearing to consider implementing the housing improvement area.
• A veto period exists where 35% of the owners can stop the process.
• The average market value for units must be at or less than the value of homes in the
first time homebuyer programs, in 2004, this is $270,000.
If your Association is interested in learning more about this finance tool, please review
the application procedure and policy and call the Housing Programs Coordinator at 952-
924-2196.
City of St. Louis Park
Community Development Dept.
APPLICATION PROCEDURES FOR ESTABLISHING A
HOUSING IMPROVEMENT AREA
1. Meet with appropriate City staffto discuss the scope of the project, member
participation, time schedule and other information as may be necessary.
2 Complete Preliminary Application for the Establishment of a Housing
Improvement Area. This form should be submitted to the Housing Programs
Coordinator along with the other required documents.
3. The request shall be reviewed by City staff on a preliminary basis as to the
feasibility of the project.
4. Staff will prepare a report for the City Council and the applicant which will
include a financial and legal analysis of the project.
5. If the proposal receives a favorable review by City Council, the association must
then submit the required petitions (minimum of 50% of owners must sign petition
form.) At the time the petitions are received, the City must have the final
Association Financial Plan which identifies how both maintenance and operation
of the common elements will be paid for and along-range plan to conduct and
finance capital improvements.
6. Upon receipt of an adequate number of valid petitions, the City will have prepared
the Plan for the HIA and the proposed Development Agreement.
7. City will schedule public hearings on the creation of the district and the setting of
the fees (two separate public hearings may be required.)
8. City Council will approve or deny the creation of the HIA and the associated fees.
If approved, the Development Agreement will be executed subject to the
successful passage of the veto period. (If 35% or more of the owners file a
written objection within the veto period, the City cannot provide financing
through a Housing Improvement Area.)
9. It is understood that City Staff or City Council may from time to time determine
that a different process which is outlined is more appropriate, given the
circumstances of each individual request.
3(Q
CITY OF ST. LOUIS PARK
PRELINIINARY APPLICATION
HOUSING IMPROVEMENT AREA FINANCING
Legal Name of Association
Mailing Address
Name of Contact Person:
Phone:
Name of Management Firm/Agent (if different than contact person)
Phone
Legal Description of the Project Site:
REQUESTED INFORMATION
Addendum shall be attached hereto addressing in detail the following:
1. Give a general description of the project.
2. Explain how the project will meet the goals of the City council as identified in
Section 3.01 of the City of St. Louis Pazk HIA Policy.
3. Provide a proposed timeline for the project including the dates of membership
meetings to discuss a project, submittal of required petitions, public hearings,
construction start, submission of first draw request and project completion.
4. List of improvements and estimated project budget.
5. Explain why Housing Improvement Area financing is necessary to undertake the
project. Attach any documentation regazding efforts to secure private financing.
6. Explain the process used to determine the scope of the proposed project and the
desire for HIA financing among the association members. Provide any
documentation regarding owner meetings discussing project.
3`7
Attach a copy of the following:
Association Bylaws
Audited financial statements for the last two years
Association Financial Plan which identifies how both maintenance and
operation of the common elements will be paid for and along-range plan to
conduct and finance capital improvements.
What is the proposed term of the HIA? Years.
How do you propose the fee to be charged to the affected property owners?
Equally among all properties
Other: for example-based on unit size, percent interest in association or value.
Please identify:
Amount of loan anticipated: $
Are there any properties within the HIA which should be exempt from the fee?
No Yes -Explain
REQUIREMENTS FOR HOUSING IlVIPROVEMENT AREA (HIA) FINANCING
To apply for HIA financing, the owners within the association must agree to the
following:
1. Must use City's choice of Bond Counsel and Financial Advisor(s).
2. Disbursements of bond/loan proceeds must be made through an escrow agent to be
selected by the City of St. Louis Park.
3. Payment of an administrative fee to the City of one half percent of the bond issue
(if City issues bonds) or flat fee of $5,000, which ever is greater.
4. City staff or its agents will review the performance and level of outstanding debt
of previous HIAs before recommending the approval of additional HIA debt.
5. The bond (s) shall be for an issue not less than $250,000, other City sources may
be used, and the City determines if bonds aze to be used.
By signing this application hereby agree to the following:
1. I have read and will abide by all the requirements of the City for taxable bond
financing. I will also commit all contractors, subcontractors, and any other major
contributors to the project to all segments applicable to them.
2. The above information is true and correct.
3. The Association will pay all costs involved in the legal and fiscal review of this
project. These costs include the Bond Counsel, Financial Advisor and City
Attorney, and ail costs involved in the issuance of the bonds to finance the
project.
4. I understand that the City reserves the right to deny final approval, regardless of
preliminary approval of the application.
Signature of Representative
Date
39
Agenda Information Memo
September 12, 2005, Eagan City Council
VII. 2006-2010 CIP PART II (VEHICLES AND EQUIPMENT)
ACTION TO BE CONSIDERED:
• To provide direction on the Part II (Vehicles and Equipment) section of the 2006
- 2010 Capital Improvement Program (CIP).
FACTS:
• The first year of this CIP (2006) is considered as a budget with the four out years
(2007 - 2010) being presented only as a general plan.
• For the most part, vehicles and equipment costing more than $10,000 are
budgeted in this section of the CIP with items costing less than $10,000 budgeted
in departmental operating budgets.
In 1993 the City Council established a policy whereby each year an amount is
allocated to the Equipment Revolving Fund (ERF) for non-enterprise fund CIP
Part II purchases. The allocation is based on an initial amount of $500,000 used
in 1993 that is increased annually by population growth and inflation factors. The
2006 allocation was increased by 3.5% from the 2005 allocation to $932,921. An
amount of $379,174 is being carried forward from 2005 generating a total
available balance of $1,312,095 for 2006 purchases.
• The ERF is funded through an annual ad valorem property tax levy.
• The schedule for this consideration is timed to allow for coordination with various
purchasing/bidding options to provide for the best possible prices, the necessary
lead times for ordering the equipment, and the desire to place the equipment in
service during 2006.
• A management meeting was held at which time staff from each department had an
opportunity to discuss their proposals and challenge other department proposals in
attempts to prioritize overall City capital equipment needs, the attached list of
purchases totaling $787,309 from the ERF was reached by consensus. This
allocation allows for a carry forward to 2007 of $524,786. The carry forward
balance illustrates the desire to maximize the City's resources by stretching
equipment and vehicle use and not to just spend the total available balance.
• Vehicles proposed for purchase were evaluated through the use of the revised
Vehicle Acquisition, Use & Replacement Policy approved by the City Council in
February of 2004.
• The funding sources for the total 2006 Part II CIP allocation of $920,838 include
$787,309 from the ERF, $62,000 from the City's Utility Fund, $46,529 from
retained franchise fees, and $25,000 from the DUI forfeiture account.
• Upon City Council consideration, this item will be placed on a subsequent
consent agenda for approval.
ATTACHMENTS:
Attached on page is a copy of the summary of the equipment proposed
for purchase through t e 2006 CIP Part II along with the funding source for each
item.
• Attached on page _~~ is a copy of the summary of the overall proposed
2006 - 2010 Part II CIP.
~~
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