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5.0. 6.0. 7.0. 8.0. 9.0. EDSR 12-14-1998 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM TO: Economic Development Authority ROM: Paul Steinman, Director of Economic Development DATE: December 14, 1998 SUBJECT: Agenda Memo for December 14, 1998 Meeting 5. Consider Resolution 98- Approving Budget Modification Tax Increment District No. 9 Issue The issue before the EDA at this time is to consider a resolution • approving a budget modification to Tax Increment District No. 9 - Tescom. This budget modification increases the overall expenditures of tax increment dollars from this District, therefore requiring that notices be mailed to the county and school district and a public hearing be held before the City Council. This public hearing is scheduled to be held before the City Council on December 21, 1998. Background The proposed modification will increase tax increment expenditures from TIF District No. 9 by a maximum of$90,000. This amount is detailed as follows: • Land purchase $24,000 • Administration 6,000 • Public improvements 60,000 Total $90,000 Land Purchase The city will be using tax increment dollars to reimburse itself for additional costs associated with the land purchase for this project which was completed in the fall of 1993. At that time • the project costs did not include a piece of land which was later purchased by the EDA for the project. 13065 Orono Parkway• P. O. Box 490 • Elk River, MN 55330-1743• (612) 441-7420 • Fax (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment Economic Development Agenda Memo December 14, 1998 Page 2 410 Administration - The city has the authority to utilize tax increment dollars to pay a portion of its administrative costs regarding this TIF District. The proposed budget modification identifies that the city will use $6,000 of tax increment for this purpose. Public.Improvements - Staff has proposed two public improvement projects in the Elk River Industrial Park utilizing tax increment dollars from TIF District No. 9. These projects include the construction of a sidewalk on the interior side of Industrial Boulevard and the modification/rehabilitation of the Elk River Industrial Park entrance sign. Staff is estimating the cost of construction of the sidewalk will be approximately $35-$45,000. There is no estimate for improvements to the Industrial Park signage at this time. Attachments • Resolution 98-1 • TIF No. 9 Budget Modification Recommendation Staff recommends approval of the attached Resolution 98- regarding a budget modification to the Tax Increment Plan for Tax Increment Financing District No. 9. 6. Consider Resolution 98- Approving Administrative Budget Modification - Tax Increment District No. 18 Issue The issue for the EDA to consider at this time is a resolution approving an administrative budget modification to the Tax Increment Financing Plan for Tax Increment District No. 18. A public hearing and county/school district notification process is not required for this budget modification due to the fact that the total maximum tax increment expenditures are not proposed to change. This budget modification simply redistributes the costs within the previously adopted budget. Economic Development Agenda Memo December 14, 1998 Page 3 Background TIF District No. 18 was established to aid in the development of the Morrell Companies project. The project is currently moving forward, thereby making it appropriate to adopt a more specific budget for this District. The current budget is as follows: • Land acquisition $0 • Site improvements 300,000 • Public improvements (includes local contribution) 355,000 • Interest 25,000 • Administration (up to 10 percent) 68,000 Total $748,000 The proposed budget modification is as follows: • Land acquisition $0 • Site improvements 0 0 • Public improvements (includes local contribution) 550,000 • Interest 130,000 • Administration 68,000 Total $748,000 The purpose for this administrative budget modification is simply to reallocate costs within the current budget. The cost of public improvements increased substantially due to a new estimation of the cost of completing the controlled railroad crossing on 171st Avenue. The cost of this railroad crossing construction is now estimated at approximately $450 - $550,000. Attachments • Resolution 98- • TIF No. 18 Budget Modification Recommendation Staff recommends approval of Resolution 98-_regarding an administrative budget modification to the Tax Increment Plan for Tax Increment District No. 18. Economic Development Agenda Memo December 14, 1998 Page 4 7. Consider Resolution 98- Requesting the Council to Call a Public Hearing for TIF District No. 21 Issue The EDA is being requested at this time to consider a resolution asking the City Council to call a public hearing for the establishment of a new economic development tax increment district in the West Business Park. This would be Tax Increment Financing District No. 21. Background Several months ago the EDA discussed a similar concept for a West Business Park project with a company planning to expand out of Minneapolis. That project did not proceed. Since that time, however, staff has discussed a similar concept with a company looking at Elk River to expand its business operations. This company has now made formal application to the city/EDA for tax increment financing and a micro loan to aid in their planned expansion project in the Elk River West Business Park. The purpose of this agenda item is to start the tax increment schedule and to authorize staff to begin to prepare the necessary documents and plans to put a tax increment district in place. The EDA will have several future opportunities to discuss the specific tax increment plan and details of the development agreement with the business prospect. The incentive package concept being discussed at this time is as follows: • 6 acres of land provided by the EDA up-front to the project $280,000 (app.) • Allowance for site improvements/grading/fill 25,000 • Allowance for construction of a berm along the south/southwest lot lines of the site 35,000 • Incentive loan at interest rate of 6.5% &term of 10 years 50,000 Project Assumptions • Phase I -Minimum building size of 50,000 s.f. • Phase II - Future expansion -minimum building size of 20-35,000 s.f. • Business Park,standards for construction • Specific standards to be met for creating new jobs vs relocation of existing jobs Economic Development Agenda Memo December 14, 1998 Page 5 Other issues/activities to be completed as part of this project include: • execute purchase agreement with Tony Emmerich • Tony Emmerich to complete plat of property • negotiate details of Development Agreement • coordinate a developer/EDA worksession to discuss details of project • EDA to consider Developer Agreement at February meeting • determine funding sources for up-front dollars • review micro loan application with EDA Finance Committee • EDA to consider micro loan at February meeting • close deal in March 1999 Attachments • Resolution 98- • Tax Increment District No. 21 Schedule Recommendation Staff recommends approval of Resolution 98-=requesting the Council to call a public hearing for TIF District No. 21. 8. Discuss Economic Development Assistant Position Staff recently had a discussion with Jim Brimeyer, The Brimeyer Group, regarding scheduling an opportunity for him to appear before the EDA to provide an update on the activities associated with the Economic Development Strategic Plan. It is likely that he will be available to do this after completion of the department's 1998 Annual Report in approximately March or April 1999. Also discussed with Mr. Brimeyer was the possibility of having him provide some job search services for the economic development assistant to be hired in March or April 1999. City Administrator.Pat Klaers has been discussing using Mr. Brimeyer's services to help fill the position of city planner at approximately the same time next year. Mr. Brimeyer felt there would be some advantages in possibly increasing the potential field of candidates for both positions if they were advertised at the same time through his office. The scenario discussed was that for a small fee his office would be responsible for acting as a clearinghouse for the economic development Economic Development Agenda Memo December 14, 1998 Page 6 • assistant applications, and once received, would simply turn these applications over to city staff and allow our internal employee selection process to take place. Mr. Brimeyer is proposing a full scale provision of services for the city planner search due to that position being a higher level department head position. In addition, Mr. Brimeyer would help develop a "position profile" for the economic development assistant, thereby further defining that persons roles and responsibilities. Mr. Brimeyer's expertise also lies in being able to promote and "sell" the community for which he is completing a position search. Staff has had discussions with a couple other communities who have hired for similar economic development assistant positions and they have indicated a real difficulty attracting qualified candidates for such positions. Staff feels it would be very beneficial to use Brimeyer's services to help attract a larger, more qualified field of candidates for the economic development assistant position in addition to the position of city planner. Mr. Brimeyer indicated he may be able to complete his services for the economic development assistant position for approximately $5,000. He has proposed a fee of$13,000 for the full scale city planner search. Recommendation Staff recommends the EDA approve proceeding with negotiation with Mr. Brimeyer to utilize a limited level of services in the search for an economic development assistant at a cost of approximately $5,000. 9. Associated Developer's (Hohlen) Project At the meeting, staff will provide an update on the negotiation progress regarding the commercial and industrial components of this project. Staff proposes to have draft development agreements available for review and discussion at the EDA meeting on January 11, 1999. ITEM 5 RESOLUTION 98 - • ECONOMIC DEVELOPMENT AUTHORITY CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION MODIFYING THE BUDGET IN TAX INCREMENT FINANCING DISTRICT NO. 9 BE IT RESOLVED by the Board of Commissioners (the "Board") of the City of Elk River Economic Development Authority ("EDA") of the City of Elk River, Minnesota ("City") as follows: Section 1. Recitals. 1.01. It has been proposed that the EDA modify the budget ("Budget Modification") in Tax Increment Financing District No. 9 ("District No. 9"), pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.090 through 469.1081 and 469.174 through 469.179, inclusive, as amended, all as reflected in the Budget Modification and presented for the Board's consideration. • 1.02. The Board has investigated the facts relating to the Budget Modification and has caused the Budget Modification to be prepared. 1.03. The EDA has performed all actions required by law to be performed prior to the adoption of the Budget Modification by the City, including, but not limited to, notification of Sherburne County and School District No. 728 having taxing jurisdiction over the property included in District No. 9, review of and written comment on the Budget Modification by the City Planning Commission, and a request that the Council schedule a public hearing on the Budget Modification upon published notice as required by law. Section 2. - Findings for the Adoption and Approval of the Budget Modification. 2.01. The Board hereby finds that District No. 9 is in the public interest and is an "Economic Development District" under Minnesota Statutes, Section 469.174, subd. 12, and finds that the adoption of the proposed Budget Modification will advance the EDA's and City's objectives of encouraging development within Development District No. 1. 2.02. The EDA further finds that the Budget Modification, is intended and, in the judgment of the EDA, the effect of such actions will be, to provide an impetus for development in the public purpose and accomplish certain objectives as specified • in the Budget Modification, which are hereby incorporated herein. Section 3. - Approval and Adoption of the Budget Modification. 3.01. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Budget Modification as presented to the EDA on this date, is hereby approved, established, and adopted: 3.02. The staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Budget Modification and for this purpose to negotiate, draft, prepare, and present to this Board for its consideration all further Plans, Resolutions, Documents, and Contracts necessary for this purpose. Approval of the Budget Modification does not constitute approval of any project or a Development Agreement with any developer. 3.03. Upon approval of the Budget Modification by the City Council, the Executive Director of the EDA is authorized to forward a copy of the Budget Modification to the Sherburne County Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes, Section 469.175, subd. 2. Approved by the Board of Commissioners of the Elk River Economic Development Authority this 14th day of December, 1998. Henry A. Duitsman, President ATTEST: Paul T. Steinman, Executive Director • TAX INCREMENT FINANCING PLAN BUDGET MODIFICATION FOR • TAX INCREMENT FINANCING DISTRICT NO. 9 City of Elk River, Minnesota November 9, 1998 • • TAX INCREMENT FINANCING PLAN BUDGET MODIFICATION TO TAX INCREMENT FINANCING DISTRICT NO. 9 This will be a modification to Section E (1) Tax Increment Financing District No. 9 cost estimates - budget. This budget modification to Tax Increment Financing District No. 9 will provide for additional expenditures in the maximum amount of$90,000 as follows: • Land purchase $24,000 • Administration 6,000 • Public improvements 60,000 Total: $90,000 This budget modification is being undertaken for the primary purpose of • constructing a sidewalk in the Elk River Industrial Park and to complete improvements to the Industrial Park entrance signage. i • • IMPACT ON TAX RATES CURRENT PERCENT ENTITY'S POTENTIAL IMPACT ON ENTITY TAX RATE OF TOTAL TOTAL NET TC TAXES ON TAX RATE Sherburne County .27253 .24 58,246,430 $21,600 (.00037) City of Elk River .26255 .24 12,383,123 $21,600 (.00174) School District No. 728 .56539 .51 26,390,619 $45,900 (.00174) Other .01475 .01 12,383,123 $ 900 (.00007) TOTAL 1.11504 1.00 $90,000 (.00392) The estimates listed above display impact on tax rates upon expenditure of tax increment to a maximum amount of$90,000. The tax rates are the payable 1998 figures for all jurisdictions. • shrdoc\eda\tif\budmod9.doc • \ \ 1 C. TY ROAD NO.1 ..., SERvics DR 285.01 410.81 777. 40:5i.S.•:•:/'::::: 200.00 200.00 1 :'• ::::::::.:::::::::1.:::::: :::::: 2 1 g 2.3i A.C. -; •...•''...':';?$.4.;f:15.i.::::::::.;i3 1.14 Arl 1.16 A.C. 0 410.00 ..gni...0...:A i R 2 'i 31145 . 4 >'...:4.6.6.t....'...? 2°1/0021505 MI A.C. ,4mm ••••:•::::::::::::..;:if::::::::::::: $ 0 .44.4-14 ::' :::::::::::::::;:• ::: eA 10' % VP 3 410.00 I. 4:•::::::i2.9A: ::::::.it 322A.CO322CØ.. - 239 AC t 1 NORTH 3 - *-:•:::•:•:•:•:••••••;•:•::....;.fr 527_,P , . 1.28 A.C. a.,4-.• _ -2141**Litii. 250.00 •V ' :::::::::::::.:::.:::::::.**:' . g 3 - Le A.C. 410.98 U '::::::.*:::::::::::::1::::.•:.:::IN ..r. :.4.1 5 c• 454.97 - ,..6 4 0 ". ',.•'•:•:;; ;::4 R *4 ; 2.18A.0 0 174 lii.::::::•:•:•:•:•:•.-.... 2.09 A.0 S41'. :.• A.N.J 2.117 A.C. ' •)' +. •................... ••.....• • 2113.72 . (bi /96DUSTRIAL Bui, 'be 4 •:A :r . 825.91 20124 . 1 520.06 3 10 4 li1/41‘k .0 4.13 A.C. ?AN ?r• s .0 7 6.34A.0 a 4mAc r-. -9 4. 4S7AC. z.- - -1- .45.72 • 4° lik0'\- •-, ...SI ESN aft MBIURRNUW UNTMoNN Imftitik 43 jo 1.2,„„,... 3.227A.0 • • %4 _.4 :14,11_41,7 ) A11N. 6 .3 A .0 . . 4, 4/ N, Ak. 111 -.._ -k_ -k. N Nk,. 11 . 7% ( % 4!cro 15S,e% • Nk. • . , EXHIBIT B-2 • TAX INCREMENT DISTRICT NO. 9 ITEM 6 RESOLUTION 98 - • CITY OF ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION MODIFYING THE BUDGET IN TAX INCREMENT FINANCING DISTRICT NO. 18 BE IT RESOLVED by the Board of Commissioners (the "Board") of the City of Elk River Economic Development Authority ("RDA") of the City of Elk River, Minnesota ("City") as follows: Section 1. - Recitals. 1.01. It has been proposed that the EDA modify the budget (Budget Modification) in Tax Increment Financing District No. 18 ("District No. 18"). 1.02. The Board has investigated the facts relating to the Budget Modification and has caused the Budget Modification to be prepared. 1.03. The Board has determined that an administrative Budget Modification is appropriate, and that a public hearing and notification of Sherburne County and School District No. 728 are not required. 1.04. The EDA has performed, or will perform, all actions required by law to be performed prior to the adoption of the Budget Modification by the City. Section 2. - Findings for the Adoption and Approval of the Budget Modification. 2.01. The Board hereby finds that District No. 18 is in the public interest and is an "Economic Development District" under Minnesota Statutes, Section 469.174, sub d. 12, and finds that the adoption of the proposed Budget Modification will advance the EDA's and City's objectives of encouraging development within Development District No. 1. 2.02. The EDA further finds that the Budget Modification, is intended and, in the judgement of the EDA, the effect of such actions will be, to provide an impetus for development in the public purpose and accomplish certain objectives as specified in the Budget Modification, which are hereby incorporated herein. • • Section 3. - Approval and Adoption of the Budget Modification. 3.01. Conditioned upon the approval thereof by the City Council, the Budget Modification as presented to the EDA on this date, is hereby approved, established, and adopted. 3.02. The staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Budget Modification and for this purpose to negotiate, draft, prepare, and present to this Board for its consideration all further Plans, Resolutions, Documents, and Contracts necessary for this purpose. Approval of the Budget Modification does not constitute approval of any project or a Development Agreement with any developer. 3.03. Upon approval of the Budget Modification by the City Council, the Executive Director of the EDA is authorized to forward a copy of the Budget Modification to the Sherburne County Auditor and the Minnesota Department of Revenue pursuant to Minnesota Statutes, Section 469.175, sub d. 2. Approved by the Board of Commissioners of the Elk River Economic Development Authority this 14th day of December, 1998. 41111 Henry A. Duitsman, President ATTEST: Paul T. Steinman, Executive Director I 0 TAX INCREMENT FINANCING PLAN BUDGET MODIFICATION FOR TAX INCREMENT FINANCING DISTRICT NO. 18 0 City of Elk River, Minnesota December 14, 1998 ID TAX INCREMENT FINANCING PLAN BUDGET MODIFICATION TO TAX INCREMENT FINANCING DISTRICT NO. 18 This will be a modification to Section G - Estimate of Public Costs - Use of Funds This budget modification to Tax Increment Financing District No. 18 will provide for a redistribution of costs in the following manner, but will not change the maximum dollar amount of tax increment to be spent from this District: • Land acquisition $ 0 • Site improvements 0 • Public improvements (includes local contribution) 550,000 • Interest 130,000 • Administration (up to 10 percent) 68,000 Total: $748,000 • n1171 I -1 -I i i I, ir _, .,, ' . , , l I 1 1 , r , I NM 1 11111111MILIIIIIIMM=-4 olint el ,I•a ., if-ii.., Eamistrmiyaucir ,,,,_ _____:-- ....,_ ,._...., a , :.woirrosi-mirierz.gre-},, ,m-srmmi ..)16140 munnuromitioniamporacimictiiiiimaggivarnsiow . M 11 74Wr \ ,,,a rem,e41 w 42—F C--rig wir-nme. — iimisEM .--* 1&111- 1112----gillWANIIIRAllk ifilatria&AIA' agliampiii _"'-' �n ICS .� -'��I,��'�`�isX11""' � f��f e � � Erapia J I. 111=1/ MiliMMI1 161."PliPerjr"lirtr-1111111.11..11.11- IPP:211MITISMVIrillille 0A r reoli , `�> #474-3•nm�ll�o��o �•' \�_ 1GiLLLLul\fop =oarl>, •.,� e ow. U. ii!.1,,,...z... — A \ \ / 1173RD AVENUE ili., 15-,,,,,,A, 1 . , jT :Lo L OUTLOT A 7 ADS TION 1/4, A ,L,imm y. r_ 777-T AVENUE ':.::::,,:.:1-.....,;',. _ ��1tr T 61 3TH AVE. f r T , '','-':'",-, 41:,'::;/; , 0 I s I !t.\ \ LEGEND T I F BOUNDARY e* TIF 18 City of SITE LOCATION MAP Elk iver ITEM 7 • RESOLUTION 98 - ECONOMIC DEVELOPMENT AUTHORITY CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA A RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF ELK RIVER TO CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 21 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Elk River, Minnesota (the "EDA"), as follows: WHEREAS, the City Council ("the Council") of the City of Elk River, Minnesota (the "City") established Municipal Development District No. 1 pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and, WHEREAS, the EDA is proposing the modification of the Development Program for Municipal Development District No. 1 and the establishment of Tax Increment Financing District No. 21, pursuant to and in accordance with Minnesota Statutes, Sections 469.090 through 469.1081 and Sections 469.174 through 469.179, inclusive, as amended. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on February 8, 1999, to consider the proposed adoption of the Modification to the Development Program for Municipal Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 21 (collectively, the "Program and Plan") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Program and Plan to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Program and Plan are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. S S 3. The Executive Director of the EDA is hereby directed to submit a copy of the Program and Plan to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Program and Plan to the Sherburne County and Independent School District No. 728 in which Tax Increment Financing District No. 21 is located not later than January 8, 1999. Passed and adopted by the Board this 14th day of December, 1998. ATTEST: Paul Steinman, Executive Director Henry A. Duitsman, Mayor THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AND THE ELK RIVER CITY COUNCIL FOR THE ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 21 (an economic development district) Schedule December 14, 1998 EDA requests City Council to call for a public hearing to be held on February 8, 1999 to establish Tax Increment Financing District No. 21. December 14, 1998 City Council calls for a public hearing to be held on February 8, 1999 to establish Tax Increment Financing District No. 21. December 18, 1998 Complete Tax Increment Plan. December 22, 1998 Planning Commission reviews Plan for compliance with the comprehensive plan. (alternate January 26, 1999) January 4, 1999 Plan forwarded to School District and County Board(at least 30 days prior to public hearing) January 11, 1999 EDA approves Plan. January 20, 1999 Send public hearing notice and map to local paper January 27, 1999 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to public hearing) February 8, 1999 City Council holds public hearing on the establishment of Tax Increment Financing District No. 21 and passes resolution approving Plan. February 9, 1999 Send Plan to County/State for certification TI21sch itW oR ATT • J L Planning Director of City of Elk River, Minnesota A PROPOSAL SUBMITTED BY: THE BRIMEYER GROUP, INC. EXECUTIVE SEARCH CONSULTANTS 904 MAINSTREET, SUITE 205 HOPKINS, MN 55343 November 30, 1998 City of Elk River • Page One Introduction The Brimeyer Group is a full-service executive search and consulting firm working primarily in the public sector to assist boards, councils, and commissions in recruiting individuals for top management positions including managers, administrators, department heads, and other key staff positions. We also are experienced in recruiting administrative staff for non-profit organizations and private corporations. In addition, we provide services in the areas of team building, strategic planning, goal setting, and organizational and management studies for selected clients. Our approach to executive search promotes maximum client input in the search process. The client is the final authority in the selection of candidates. In addition to our milestone meetings with the client, we will provide periodic updates to keep you informed of our progress. The Brimeyer Group, Inc., is committed to accurately portraying all candidates to the client so that the client's satisfaction may be assured. We also strive to accurately portray the position to the candidates to prevent unrealistic expectations. We maintain continual contact with the client throughout the search and keep the candidates informed as the search progresses. We offer to perform a performance evaluation for the new Planning Director that is designed to assess the first 6 months on the job and to identify issues to work on over the next 12 months. This service is provided at no additional fee. • Consultant James L. Brimeyer Jim has twenty years of experience in public sector management and has been involved in executive search since July, 1988. Mr. Brimeyer served in public administration in four cities, three as City Manager, including his last position in St. Louis Park, Minnesota (pop. 45,000), with a budget of$28 million and 230 employees. He also served in Worthington, Ohio, and Wood Dale, Illinois. He began his career as Assistant City Manager in Park Ridge, Illinois after obtaining a Master's degree in Public Administration from Northern Illinois University. His Bachelor's degree is from Loras College in Dubuque, Iowa. Mr. Brimeyer is past President of the Ohio City Management Association. He belongs to the International City Management Association, the Metropolitan Area Management Association, the Minnesota City Management Association, the National Forum for Black Public Administrators, and the Minnesota Municipal Utilities Association. He is active in the TwinWest Chamber of Commerce. He is Past President of the St. Louis Park Rotary and Past President of the Rotary Foundation Board. In January, 1996 Mr. Brimeyer began a four-year term as City Council Member at-large in St. Louis Park, Minnesota. City of Elk River Page Two The Search Process We anticipate the search for the Planning Director for the City of Elk River will take from three to four months (90 to 120 days) from the time we are retained to the time the City Council makes an offer. This is somewhat dependent on the time required to screen candidates, and the availability of the City Administrator and the City Council to review consultant reports and conduct final interviews. We have prepared a preliminary timetable which corresponds to the various steps in the process. After further discussions with the City Administrator and the City Council we will refine the timetable and develop a target date for the reporting of the new Planning Director. PHASE I Position Profile A successful search begins with a thorough definition and agreement by the City on each aspect of the position to be filled. During this initial phase our consultants will meet with the City Administrator, City Council, Department Heads, and key staff to learn more about your goals and objectives. Critical factors to be determined include position responsibility and authority; reporting relationships; educational and experience requirements; personal and leadership qualities; management style, and organizational priorities. The listing of priorities serves a two-fold purpose: It assists the hiring authority in developing a consensus on what is important for the organization and it alerts potential candidates to the important issues of the organization. Of equal importance to the success of the search is identifying the community priorities and environment in which the Planning Director must function. We would expect to meet with selected representatives from the community to further assess the climate within which the selected candidate will most effectively perform. This may be accomplished through individual interviews or through a public forum. Prior to our meetings we will supply an Ideal Candidate Profile Survey to assist the interviewees in assembling their ideas on what should be included in the Position Profile. As a result of the meetings we will reach an understanding of the critical specifications of the position and we will draft a Position Profile. A great deal of emphasis is placed on the agreement of this analysis. Without this information, it is difficult to determine how potential candidates will affect the City's plans and organizational team. The final Position Profile becomes the document against which we evaluate prospective candidates. During the meeting with the City Council agreement will be reached concerning the number of 411 qualified candidates that will be interviewed before making a final decision. City of Elk River Page Three PHASE II Place Announcements - Recruit Candidates After the Profile is approved, we will conduct a comprehensive program to contact candidates and determine sources of candidates. In addition to placing announcements in the appropriate professional and trade journals, we will identify potential candidates through personal contacts with public sector professionals and other members of similar organizations. In addition, we will use our research staff to identify comparable organizations from which key individuals can be contacted. Often we are able to identify candidates from similar assignments who may be appropriate for the position. We will directly recruit specific individuals with established patterns of talent, stability, and success. Review Resumes and Screen Candidates Numerous prospects will be screened against the Position Profile. From these individuals we will compile a broad list of prospects for the job. An initial confidential telephone contact will be made to promising candidates to determine their suitability and interest. After our research and sourcing is completed, several qualified candidates emerge for 411 evaluation and comparison. Thorough, intensive, one-on-one interviews will be conducted with the leading candidates by our staff. Our in-depth evaluation and appraisal techniques will cover issues such as work experience, education, professional development and achievement, career objectives, accomplishments, suitability, and specific interest in the Elk River position. Progress Report Following the screening and evaluation, we will prepare a Progress Report that will provide information on 7 to 9 candidates who have been judged to meet or exceed the requirements of the position. This Progress Report will provide specific information on the individuals' educational and work history; accomplishments and growth potential; strengths and possible limitations. We will personally deliver and review these reports with the City Administrator and the City Council. On the basis of this review, four to six candidates will be selected for further consideration. At this time we will propose a schedule for interviewing the candidates. PHASE III Background Checks Prior to the interviews, we will investigate the backgrounds of the finalist candidates through discreet telephone and personal reference checks. We will talk with peers and former • associates of these candidates. It is our practice to speak directly with individuals who are, or have been, in positions to evaluate the candidates' job performance. We will verify the finalist candidates' credentials through an educational, criminal, and credit check. City of Elk River • Page Four Assessment (No additional fee) The Brimeyer Group has the authorization and the ability to administer an assessment tool entitled "The DiSC Behavioral Management System" designed to assist individuals in understanding their style and to assess the environment in which they operate most effectively. The finalist candidates will be provided with a questionnaire from which an extensive computer report is generated. The report is very specific and covers the following areas: 1. Internal motivation 2. Self-management strategies 3. Identification and management of conflict The City will learn insights into the strengths, weaknesses, and likelihood of success for each final candidate before hiring and how to best manage and work effectively with each candidate. The above assessment is available at the option of the City. Client Interview and Selection Process • The interview schedule will allow the candidates to get acquainted with the community and community leaders and visit with the staff on an informal basis. We culminate the process with individual and group interviews. Prior to the interviews we will provide the interviewers with some helpful material on interviewing techniques and will discuss the proposed procedures to be used in the selection process including an evaluation form and a list of questions for possible use by the interviewers. Extensive material including background and reference checks will be provided on each candidate prior to the interview. If possible, all interviews will be scheduled within a period of one to two days depending upon the desire of the City. A consultant will be present at each interview. Selection After the interviews we will meet with the City Administrator and Councilmembers to review the individual ratings and assist in determining the top candidate. The consultant will assist in this process to the extent requested by the City. We take responsibility for notifying all unsuccessful candidates at each stage of the process. Negotiating Compensation Package The Brimeyer Group, Inc., will take great care that the City of Elk River secures an acceptance from the most desired individual. We will recommend a compensation package calculated to attract the finalist and will participate in the final negotiations. If any concerns arise in the • final hour, by working as a third-party intermediary we can resolve important details of the offer which may have significant bearing on its final acceptance or rejection. City of Elk River • Page Five Additional Services A. If requested by the City, The Brimeyer Group, Inc., can act as a spokesperson with the media, when appropriate, in order to maintain the integrity of the selection process as well as to protect the confidentiality and privacy of the candidates who are not hired. B. Lifestyles, personal values, and dual career households are factors that influence an individual's decision to change jobs. We pay careful attention to all circumstances arising from a job change including adjustments in compensation and benefits, spouse careers, real estate issues, family concerns, and relocation details. C. After the candidate is employed, we will follow up with both the City and the candidate to insure a smooth transition and satisfactory completion of the assignment. We will make contact to assess the fit from both the City's and the candidate's points of view. In the unlikely event that unexpected concerns have developed, this follow-up contact is intended to identify potential issues early so that adjustments can be made, if necessary. • Work Program (Performance Evaluation) If requested by the City Administrator, we agree to assist the City and the Planning Director in developing a Work Program after a six-month period that outlines the expectations of the City and the Planning Director. The only cost incurred for this service will be expenses. The Work Program will contain objectives for the Planning Director to accomplish in the ensuing 12 to 18 months. Guarantee If the City utilizes the entire process, Phase I, Phase II, and Phase III, as described, The Brimeyer Group offers an 18-month guarantee on the effectiveness of the Planning Director. Should the City determine it necessary to terminate the Planning Director due to failure to adequately perform the duties as specified in the Profile and as represented by the process, we will refill the position at no additional fee and will charge expenses only. We offer this assurance because of our confidence in the thoroughness and accuracy of the process. Should there be substantial changes in the political situation at the City of Elk River and a decision is made to terminate the Planning Director for reasons other than failure to perform the duties as specified in the Position Profile, this guarantee is subject to negotiations between • the City and The Brimeyer Group. PageCity ofSix Elk River • Costs EXPENSES The Brimeyer Group, Inc., will bill expenses directly related to the assignment withthe City's prior approval. Necessary. expenses include announcements, travel, meals and lodging; long distance telephone; printing; credential verifications; courier service; and administrative expenses. Our expenses for this assignment would be $1,500 to $2,000. This estimate does not include any costs associated with candidates' expenses for the final interview. FEE FOR SERVICE To complete the assignment, we propose a flat fee of$13,000. The fee includes the following services: Phase I Meet with City Council, City Administrator, Department Heads, and key staff Meet with selected representatives from the community • Develop Position Profile Draft Position Profile Present Profile for approval Phase II Place Announcements Direct Recruiting Contact Sources Review Resumes Screen and evaluate candidates Prepare and present Progress Report Phase III Background/reference checks Administer assessment instrument (included in base fee) Schedule and coordinate candidates' interviews with the City Participate in interviews Develop compensation package Participate in negotiations Counseling Develop Work Program (six months after employment) City of Elk River • Page Seven PAYMENT Our payment policy on searches is one-third of the fee due upon signing this agreement; one- third after presentation of the Progress Report; and the balance due 10 days after the search has successfully been completed, whether the agreement is oral or written. In the event the City terminates this agreement during the search we will retain the progress payments to that point. - 1113oile C?:itA4Aes L. Brimeyer 8-An U Date President The Brimeyer Group, Inc. • Date City of Elk River • • City of Elk River Planning Director Suggested Search Timetable 12/7/98 Authorization to Proceed 12/9 to 1/3/99 Gather Information for Profile Interview Council, staff, community, etc. 1/8/99 Place Announcement 1/18/99 Approve Profile 1/11 to 2/14/99 Recruit Candidates • 2/15/99 Deadline for Applications 2/17 to 3/10/99 Review and Screen Candidates 3/15/99 Progress Report and Selection of Finalists 3/17 to 3/31/99 Background and Reference Check 4/1 and 4/2/99 Interviews May, 1999 Start Date The meetings for which the Council and Administrator need to be present are underlined in the above timetable. .