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City Council Agenda Packet 07-28-2008AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday July 28, 2008 - 7 p.m. NOTE: Special meeting at 5 p.m. -Facilities Planning Mayor: Clint Herbst Council Members: Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski 1. Call to Order and Pledge of Allegiance 2A. Approve minutes of July 14, 2008 Regular Meeting. 2B. Approve minutes of July 14, 2008 Special Meeting -Human Resources Director 2C. Approve minutes of July 15, 2008 Special Meeting -Economic Development Director 3. Consideration of adding items to the agenda. 4. Citizen comments, petitions, requests and concerns. 5. Consent Agenda: A. Consideration of ratifying hires and departures MCC and Streets. B. Consideration of approving one-day charitable gambling license for St. Michael-Albertville and Monticello Rotary Club. C. Consideration of Final Acceptance and Payment for the Meadow Oaks and CSAH 39 Lift Stations and Forcemain Improvement Project, city Project No. 2003-02C. D. Consideration of Final Acceptance and payment for the Realignment of Territorial Road, city Project No. 2005-21C. E. Consideration of approving revised capital asset policy. F. Consideration of accepting contribution for National Night Out. G. Consideration of approving a Non-DOT Drug and Alcohol Policy for City of Monticello employees. H. Consideration of appointment to fill Economic Development Director position. 6. Consideration of items removed from the consent agenda for discussion. 7. Public Hearing on Delinquent Utility Bills and certification to County Auditor. Consideration of accepting bids and awarding contract for fiber optic loop system 9. Consideration of accepting feasibility report and call for public hearing for street improvements to Kevin Longley Drive and Jerry Liefert Drive, City Project No. 2008-1OC. Agenda Monticello City Council July 28, 2008 Page Two 10. Consideration of approving the purchase of a DMV staff vehicle. 11. Consideration of approving payment of bills for July, 2008. 12. 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FC W z I C7 FC U\ ~ fx a V1\ ~ ~ I r-IHMr~OOO~0HN01H Lfl H ~ ~ I W O Ur Q,'O (~ I Ga I OHe-ir-IN d'O COOOOIfl lfl HNNNNNd'a'~~~10~ O H CO W I C7 H F z w a o ~., A W O a a A A . W ~ 0.1 3 A W W a ~ w o ~ x ~+ a a ~ a a H GQ W O H ' H a t~ z H A • W U W P' a w N Q • • • Council Minutes: 7/14/08 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday July 14, 2008 - 7 p.m. Members Present: Clint Herbst, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: Wayne Mayer 1. Call to Order and Pledge of Allegiance Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2A. Approve minutes of June 23, 2008 Regular Meeting. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE JUNE 23, 2008 REGULAR MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 2B. Approve minutes of June 23, 2008 Special Meeting. SUSIE WOJCHOUSKI MOVED TO APPROVE THE MINUTES OF THE JUNE 23, 2008 SPECIAL MEETING ON THE ANNUAL AUDIT. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 3. Consideration of adding items to the agenda. An update on the closing of River Street at TH 25 and a report on animal control issues were added to the agenda. City Engineer Bruce Westby requested that agenda item #10, the feasibility report for Kevin Longley Drive, Jerry Liefert Drive and Hawthorne Place North be removed from the agenda. 4. Citizen comments, petitions, requests and concerns. No one spoke under citizens comments. At this time Cathy Shuman reported on animal control related issues noting the increase in complaints about barking dogs. She met with Patty Salzwedel, the Animal Control Officer and Dan Anselment from the Wright County Sheriff's Department the City in an effort to come up with a plan for better coordination of handling dog complaints and problems during the hours there is not coverage by the Animal Control Officer. The Animal Control Officer will be meeting with the people who have filed animal related complaints to update them on the status of the complain. The idea is to follow up on complaints quickly and to work in close coordination with the Wright County Sheriff s Department. This matter will also be discussed at the July Police Commission meeting. Brian Stumpf asked if the Animal Control Officer is responsible for emergency calls during non- working hours citing an instance where the Animal Control Officer was called for an emergency but did not respond. Ultimately the Sheriff's Department had to open up the animal shelter. Council Minutes: 7/14/08 Clint Herbst felt it was important that the Animal Control Office calls back even if she does not physically respond to the emergency. It was felt there was a need to come up with processes to be followed in handling complaints and emergencies during the working hours of the Animal Control Officer and by the Sheriff s Department during the hours of the Animal Control Officer is not on duty. 5. Consent Agenda: A. Consideration of ratifying hires and departures MCC, Liquor and Parks. Recommendation: Ratify the hires and departures as identified. B. Consideration of vacating a portion of Dundas Road right of way as related to the Amax Addition plat and vacating a portion of Old State Highway Trunk No. 25 right of way. Recommendation: Adopt a resolution vacating a portion of Dundas Road and retaining a drainage and utility easement as related to the Amax Addition plat and vacating a portion of Old State Highway Trunk No. 25 right-of--way as shown on Exhibit A. Res. #2008-55. C. Consideration of approving a temporary liquor license for the Monticello Lions Club. Recommendation: Approve the temporary liquor license for the Monticello Lions Club for July 24, 2008. D. Consideration of accepting improvements and authorizing final payment for the Fallon Avenue Pathway, City Project No. 2007-12C. Recommendation: Accept the improvements and approve the final payment of $3,105.93 to Rum River Contracting Company for the Fallon Avenue Pathway Project No. 2007-12C. Res. #2008-57. E. Consideration of approving liquor license for Buffalo Wild Wings Grill & Bar. Recommendation: Approve the Sunday and On-Sale liquor license for Buffalo Wild Wings for 9221 Cedar Street. F. Consideration of authorization to proceed with the hiring process for utility locator position. Recommendation: Authorize proceeding with hiring process for Seasonal Locator/Field Technician position. G. Consideration of accepting donation from VFW Post #8731, Dick Slais, Monticello Lions Club, Ryan & Kelly Kadelbach and Jennifer and Dave Mathieu. Recommendation: Approve the contribution and authorize use of funds as specified. Res. #2008-53 H. Consideration of approving one day charitable gambling license for Ducks Unlimited Chapter #256. Recommendation: Adopt a resolution authorizing the State Gambling Control Board to issue the charitable gambling license to Ducks Unlimited Chapter #256 to conduct charitable gambling activities at River City Extreme, 3875 School Boulevard on October 9, 2008. Res. #2008-54. I. Consideration of appointment of election judges for primary election on September 9, 2008. Recommendation: Approve the following as election judges contingent upon meeting eligibility requirements and completion of training: Fred Anderson Gregory Ashfeld Gladys Bitzer 2 Council Minutes: 7/14/08 Joan Bondhus Richard Bourque Sandra Brambink Joan Brandon Donna Brauch Ron Broekemeier Jane Bromberg Rodney Byholm David Carlson Lucille Clausen Edith Custer Rosemary Dahl Mary Daniels Agnes DeMarais Kristi DeMarais Richard Doucette Roseanne Duran Jamie Fisher Kay Gauthier Lynnea Gillham Robert Grabinski Alice Grant Cynthia Hamond Harvey Kendall Ara Lotzer Pat Markling Florence Mayer Arlene McIntire Judy Moody MerriJo Nesland Richard Quick Eleanor Rademacher James Sanborn Cynthia Schmitt Patricia Schmits Jeanette Smith Randy Smith Darlene Solberg Rita Soltau Patricia Sonju-Thielman Jim Stevenson Opal Stokes Sandy Suchy Diane Wefel Donna Wimmer Lorraine Wolff 6. J. Consideration of a request for amendment to the Monticello Zoning Ordinance Section 3-9 regulating signage for the purpose of promoting or selling a development project. Applicant: City of Monticello. Recommendation: Approve the amendment to the Monticello Zoning Ordinance Section 3-9 as proposed based on a finding that signage for the purpose of promoting or selling a development is consistent with permitted use sign activities. K. Consideration of a request for a conditional use permit for a sign promoting or selling a development project. Recommendation: With the approval of agenda item #SJ this becomes a permitted use and no action is required. L. Consideration of approving resolution requesting speed study on Chelsea Road from CSAH 18 to TH 25 and on Edmonson Avenue from 87 Street to Chelsea Road. Recommendation: Adopt Resolution #2008-56 requesting MnDOT to conduct the speed study. M. Consideration of approving closure of street for a neighborhood block party. Recommendation: Approve the temporary closing of Farmstead Avenue from Park Drive to Farmstead Court for August 5, 2008 from 7 p.m. to 9 p.m. for a neighborhood block park. Tom Perrault requested the removal of items #SJ, #SL and #SM. SUSIE WOJCHOUSKI MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS #SJ, #SL AND #SM AND THE REMOVAL OF ITEM #10 FROM THE REGULAR AGENDA. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 Consideration of items removed from the consent agenda for discussion. #SJAmendment to Monticello Zoning Ordinance regulating signage for the purpose of promoting or selling a developmentprojec~ Tom Perrault asked how they determined the 95% threshold. Angela Schumann Community Development Director stated the language of the ordinance did not change. The amendment merely changes the signage from a conditional use to a permitted use. The question may up as to what constitutes development and this issue will be discussed in the overall 3 Council Minutes: 7/14/08 update of the sign ordinance. Tom Perrault asked if a property had multiple frontages would they be allowed more than one sign. Angela Schumann responded that the number of signs allowed is based on acreage not street frontages. However if the Council felt multiple frontages should be a factor in considering the number of signs allowed in this situation it is something that can be discussed in the overall review of the sign ordinance. SUSIE WOJCHOUSKI MOVED TO AMEND THE MONTICELLO ZONING ORDINANCE SECTION 3-9 AS PROPOSED BASED ON A FINDING THAT SIGNAGE FOR THE PURPOSE OF PROMOTING OR SELLLING A DEVELOPMENT PROJECT IS CONSISTENT WITH PERMITTED USE SIGN ACTIVITIES. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION AS HE FELT FRONTAGE SHOULD BE CONSIDERED IN DETERMINING THE NUMBER OF SIGNS. 3-1 #SL Speed study on Chelsea Road from CSAH 18 to TH 25 and on Edmonson Avenue from 87th Street to Chelsea Road. Tom Perrault questioned why the speed limit study didn't extend to 85th Street. Bruce Westby responded that the request covered the street segment within the city limits. He did not believe the City could request a speed study for areas outside their jurisdiction. The Council expressed their desire to avoid speed limit changes mid-way in a street section. Tom Perrault felt 85~' Street was a logical point to have covered in the speed study. Bruce Westby will check into this and report back to the Council. BRIAN STUMPF MOVED TO ADOPT RESOLUTION 2008-56 REQUESTING MNDOT TO CONDUCT A SPEED STUDY ON CHELSEA ROAD FROM CSAH 18 TO TH 25 AND ON EDMONSON AVENUE FROM 87TH STREET TO CHELSEA ROAD NOTING THERE IS NO COST TO THE CITY FOR CONDUCTING THE SPEED STUDY. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 #SM Closure of street for neighborhood block party. Tom Perrault stated he was happy to see this taking place for the National Night Out and while he did not want to discourage this practice, he did wonder about the cost to the City for putting up and taking down the barricades. Street Superintendent Tom Moores indicated that communities handle it in different ways. Some cities have their employees responsible for the erection and removal of the barricades and other cities have the individuals requesting the closure be responsible for the barricades. Tom Moores stated that the street closure involves the placement of some cones and A-barricades. Clint Herbst felt it made sense to have the individuals requesting the street closing be responsible for setting up and removing the barricades. Tom Moores added that the City specifies that no alcohol is to be brought out onto the city street. Susie Wojchouski asked if the City had any established guidelines determining who could block off the street and for what purpose. Tom Moores indicated they could draft some policy language but for now the National Night Out is all they are looking at. Jeff O'Neill asked the Council if the policy restricts street closing to certain types of activities if staff could administer the policy. Any use not identified in the policy would have to come back before the Council. TOM PERRAULT MOVED TO APPROVE THE TEMPORARY CLOSING OF FARMSTEAD AVENUE FROM PARK DRIVE TO FARMSTEAD COURT FOR AUGUST 5, 2008 FROM 7 P.M. TO 9 P.M. FOR A NEIGHBORHOOD BLOCK PARTY. SUSIE WOJCHOUSKI SECONDED 4 Council Minutes: 7/14/08 THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 7. Public Hearing -Consideration of a request for anneal of denial for variance from Chanter 3, Section 5 of the Monticello Zoning Ordinance regulating off-street narking requirements. This item was tabled at the last meeting to allow staff to meet with the applicant regarding additional parking spaces. A number of options came out of that meeting for Council consideration. These options include: 1) Proof of parking agreement for the 8 parking stalls needed and 2) Require a cross easement. Option #1 would require the applicant to agree to a 2 year parking analysis. At the end of the two year period the Council would do a formal review of the parking demand. The period could be extended beyond two years if the site doesn't meet the parking regulations. If at some point in the two year period the Council feels the site is deficient in parking, the applicant could either pay into the parking fund or apply for a cross easement to allow parking at the Cub/Kmart facilities. Staff was recommending approval of Option #1 and recommended approval of the Planning Commission's action in denying the variance request because the applicant has not shown a hardship that was not economic in nature. Brian Stumpf asked about the crosswalks in the area. Clint Herbst asked if any contact had been made with the apartment owner to the north to see if any agreement could be reached for additional parking. Susie Wojchouski stated the applicant indicated he had discussed this with the property owner but they were not interested. Clint Herbst said if the City does not have any place to put the parking stalls the applicant should not have to pay into the fund. Clint Herbst asked if the City has a responsibility to Rancho Grande to make sure their parking stall needs are maintained because if there is a problem Rancho Grande's parking would be affected. Brian Stumpf felt if there was a parking problem people would not go to that business. Clint Herbst said in this case if parking is a problem it will affect the library and MCC. Brian Stumpf felt there was enough parking in the area without requiring the applicant to pay into the fund. Mayor Herbst opened the public hearing on the appeal of the variance. No one spoke for or against the appeal. Mayor Herbst then closed the public hearing. Tom Perrault asked if the City allowed a cross easement for the eight stalls needed would this area be striped and designated for that use. Since a cross easement is a conditional use, the City could impose requirements they feel necessary. Clint Herbst reiterated his belief that the City should only be collecting money if they have a plan to put the stalls in. It was suggested that if the applicant uses the library parking lot to meet the 8 stalls needed, the City could when maintenance is needed on the parking lot charge the applicant for a portion of the cost based on the number of stalls. BRIAN STUMPF MOVED TO APPROVE THE APPEAL FOR THE VARIANCE TO THE PARKING REGULATIONS IN THE CCD ZONING DISTRICT BY ALLOWING A RESTAURANT EXPANSION WITHOUT THE REQUIRED PARKING CONSTRUCTION OR FEE IN LIEU OF. SUSIE WOJCHOUSKI SECONDED THE MOTION. Brian Stumpf emphasized his motion was for approval of the variance and not for the proof of parking agreement or cross easement. He felt the applicant had parking stalls available to him using the Cub/Kmart site and/or the library site. Jeff O'Neill stated there is something in the ordinance that allows for a reduction in the number of stalls. Brian Stumpf said there is adequate 5 Council Minutes: 7/14/08 parking for the site. Tom Perrault questioned the use of the library site for the applicant's parking and felt the there should be a cross easement. UPON VOTE BEING TAKEN THE MOTION CARRIED WITH TOM PERRAULT VOTING IN OPPOSITION. 3-1 8. Consideration of Directing Staff to Present to TDS with Opportunities for Sharing Telecommunication Development Related Expenses and Cooperative/Efficient Use of City Rights of Way. Jeff O'Neill stated they are asking Council to direct staff to work with TDS in an effort to save costs in construction of the fiber optic systems and to cooperate in the use of the right-of--way for utility placement. In addition to construction costs savings there could also be some saving of time since the City has already designed the entire system. The City's consultants on the fiber optic system indicated that by installing lines on a joint basis the City and TDS could save $1,600,000 each. The other benefit to this approach is the efficient use ofright-of--way by utilizing the same conduit thus saving space and cost. There has been some indication from TDS that they are willing to work cooperatively. Clint Herbst said the amount of utilities placed in the right of way is considerable and it is important how the existing right-of--way is utilized. Brian Stumpf asked what level of staffwould be working with TDS. Jeff O'Neill responded that it would be primarily in the engineering area but since there is currently litigation taking place there maybe attorney involvement as well. Jeff O'Neill said the City would try to move as quickly as possible. Susie Wojchouski asked if TDS is already laying fiber. Clint Herbst thought TDS was putting lines in conduit that TDS already has in place. Bruce Westby indicated that East of TH 25 and North of 3`~ Street is the area where TDS has been installing fiber. BRIAN STUMPF MOVED TO AUTHORIZE STAFF TO WORK WITH TDS IN FINDING OPPORTUNITIES FOR COST SAVING THROUGH JOINT INSTALLATION OF FIBER OPTIC FACILITIES. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 9. Consideration of approving plans and specifications and authorizing advertisement for bids for Fire Department pumper. Steve Joerg and Brad Fyle from the Fire Department were present to answer any questions on the specifications for the new pumper. The Fire Department has been budgeting for several years for this truck and at this time they are prepared to go out for bids. Tom Kelly, Finance Director indicated that thus far $369,000 has been set aside in previous budgets for the truck. It is estimated that an additional $160,000 would need to be budgeted. While Tom Kelly thought this could be done he did note that the levy limits would make it a little more difficult. Steve Joerg noted that by going out for bids at this time the City would have a better idea of what amount needs to be budgeted. TOM PERRAULT MOVED TO APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZE ADVERTISEMENT FOR BIDS ON A PUMPER TRUCK. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 6 Council Minutes: 7/14/08 10. Consideration of accepting feasibility report and call for public hearing for street improvements to Kevin Longley Drive, Jerry Liefert Drive and Hawthorne Place North, City Proiect No. 2008-1OC. REMOVED FROM AGENDA. 11. Consideration of award of bids for 2008 Sealcoating Proiect. Street Superintendent Tom Moores provided information on the bid results for the 2008 Sealcoating Project. Since this was a maintenance project there was no feasibility report prepared by the engineer. The areas covered by the Sealcoating work are the streets that were reconstructed in 2003 as part of the first Core Street Reconstruction Project. Also covered in this project are the remainder of the streets in the Cardinal Hills development that were not completed last year and four parking lots: 1) Community Center/City Hall, 2) Hi-Way Liquor parking lot; 3) Fire Hall parking lot and 4) The Veit property adjacent to the liquor store site. Two bids were received with Allied Blcktop of Maple Grove being the low bidder at a cost of $117,972.54. Clint Herbst asked if it was unusual to get only two bids for this type of project. Tom Moores stated he was surprised that there were not more bidders. Tom Moores explained the steps in the Sealcoating process which includes emulsion oil being placed on street and with crushed granite material being applied and rolled. The material stays on the street about a week and any excess is then removed. Funds for the work were budgeted in the Street Department funds. Brian Stumpf asked about theVeit parking lot and if they were in agreement with what they would be paying for their portion of the parking lot. Tom Moores indicated they were. Clint Herbst suggested that in future projects if there are businesses whose needs could be met as part of a city project, the City should look at that possibility. Generally the larger the project the better unit prices there is. Brian Stumpf asked about Vine Street from the railroad tracks to 4~' Street and if that was a public street or if it had been vacated. Staff indicated it was a public street with a temporary cul-de-sac, Brian Stumpf suggested the City make contact with the property owner prior to doing the work since it is their primary access. BRIAN STUMPF MOVED TO AWARD THE CONTRACT FOR THE 2008 SEALCOATING PROJECT TO THE LOW BIDDER ALLIED BLACKTOP COMPANY OF MAPLE GROVE MINNESOTA 1N THE AMOUNT OF $117,972.54 WITH AN ESTIMATED COMPLETION DATE OF AUGUST 24, 2008. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 Closing of River Street: Tom Moores reported that signs had been placed earlier indicating that River Street would be closed. On July 14 Public Works staff along with MnDOT representatives closed the street. Things seem to be going well so far. Since it is a City project, the Public Works Department will be the primary contact for anything that happens. The authorities have been notified that if any of the barricades are down or removed, the City needs to be contacted. Tom Moores noted that MnDOT required that the signs be up at least one week prior to closing of the street and they also required that a press release be issued. The City fulfilled these requirements. 12. Department Report -Building Department. Deb Ward from the Building Department gave a brief update on the activities of the department since 7 Council Minutes: 7/14/08 the storm that took place in May. Generally with roof and siding permits the staff is looking at a minimum of four inspections. The Council asked about the time frame to get the permits and to get inspections on the work. The Building Department has added two part-time inspectors which should allow them to keep up with the inspections as well as the blight notices. They are making every effort possible with existing staff to meet the demands. They have made adjustments to staff working hours to allow inspections later into the day. It is estimated that 3000 homes were damaged in the storm and thus far 906 addresses had pulled permits. 3000 homes is about 80% of the City's housing structures. Clint Herbst asked if they had encountered any problems thus far. Deb Ward indicated they have caught some contractors operating without a permit. It is important for the homeowner to verify that the contractor has pulled a permit. Susie Wojchouski asked for example of blight and Deb Ward stated that blight would be like uncut tall weeds and grass, unlicensed or inoperable vehicles or debris and garbage in a yard. Jeff O'Neill wanted to get authorization from Council to hire additional staff for the building department. 13. Consideration of approving payment of bills for July, 2008. Tom Perrault requested clarification on a planning bill. Staff indicated it was for apre-design meeting with a local church. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF THE BILLS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 Riverfest Celebration: Brian Stumpf thanked all the staff and volunteers for making Riverfest a success. Susie Wojchouski pointed out all the assistance provided by the Street and Parks Departments in getting things ready and in getting everything cleaned up so quickly after the event. 14. Adiourn BRIAN STUMPF MOVED TO ADJOURN AT 8:35 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4-0 Recording Secretary 8 Special Council Meeting Minutes: 7/14/08 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, July 14, 2008 - 5 p.m. Members Present: Clint Herbst, Tom Perrault, Brian Stumpf and Susie Wojchouski Members Absent: Wayne Mayer 1. Interview Candidates for Human Resources Position. The Special Council Meeting was called to order by Mayor Clint Herbst at 5 p.m. Jeff O'Neill explained the process for the second interviews of selected candidates for Human Resources Director. Council and Staff interviewed three candidates for the Human Resources Director position. After the interviews, a discussion of the candidates' qualifications and references took place. Mayor Herbst noted that he was impressed with all three of the candidates. SUSIE WOJCHOUSKI MOVED TO OFFER THE POSITION OF HUMAN RESOURCES DIRECTOR TO TRACY ERGEN INCLUSIVE OF 25 HOURS PER WEEK AT THE SALARY AS ADVERTISED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2. Adiourn The special meeting was adjourned by Mayor Clint Herbst at 6:48 p.m. Recording Secretary Special Council Minutes: 7/15/08 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Tuesday July 15, 2008 - 5:30 p.m. Members Present: Clint Herbst, Tom Perrault and Susie Wojchouski. Members Absent: Wayne Mayer and Brian Stumpf. Also Present : Bill Demules, Lynn Dahl, Jeff O'Neill, Angela Schumann 1. Call to Order. The special meeting of the Council was called to order at 5:30 p.m. for the purpose of interviewing candidates to fill the vacant Economic Development Director position. Two candidates were interviewed. It was the consensus that both candidates were excellent with one candidate having an advantage due to level of experience as described. After the interview process was completed an evaluation of the candidates was done by Council. CLINT HERBST MOVED TO AUTHORIZE EMPLOYMENT OF JEFFREY SCHLINGMANN FOR THE ECONOMIC DEVELOPMENT DIRECTOR POSITION CONTINGENT UPON COLLLECTION AND REVIEW OF REFERENCE AND ADDITIONAL BACKGROUND INFORMATION. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3-0. 2. Adiourn. The special meeting adjourned at 8:00 p.m. Recording Secretary Council Agenda: 7/28/08 SA. Consideration of approving new hires and departures for MCC and Streets, (JO) A. REFERENCE AND BACKGROUND: The Council is asked to ratify the hiring and departures of employees that have occurred recently at the MCC and Street Department. It is recommended that the Council officially ratify the hiring/departure of all new employees including part-time and seasonal workers. A.1 BUDGET IMPACT: None A.2 STAFF WORK LOAD IMPACT: Until the positions are filled again, existing staff would pick up those hours. B. ALTERNATIVE ACTIONS: Ratify the hire/departures of the employees as identified on the attached list. C. RECOMMENDATION: By statute the City Council has the authority to approve all hires/departures. There is no other recommendation but for the Council to exercise the authority given to them by state statute. D. SUPPORTING DATA: List of new employees. NEW EMPLOYEES Name Title Department Hire Date Class Nichole Kranzler Lead Guest Service MCC 07/09/2008 PT TERMINATING EMPLOYEES Name Reason Department Last Day Class Matthew Bushnell Voluntary Streets 07/07/2008 Temp council_employee list.xls: 7/22/2008 Council Agenda: July 28, 2008 SB. Consideration of approving aone-day charitable gambling license for a raffle for the St. Michael-Albertville Rotary Club. (JO) A. REFERENCE AND BACKGROUND: The St. Michael-Albertville Rotary Club has applied for a permit for a temporary charitable gambling license to conduct a raffle at the Monticello County Club on Monday September 15, 2008. The proceeds from the event will help fund various programs for both the Monticello Rotary and the St. Michael-Albertville Rotary. The net revenue from previous events of this nature has run about $800-$900. In order for the State Gambling Control Board to issue this temporary gambling license, a resolution of the City either approving or denying the application needs to be submitted. B. ALTERNATIVE ACTIONS: 1. Adopt a resolution authorizing the State Gambling Control Board to issue the charitable gambling license to St. Michael-Albertville Rotary Club to conduct a raffle on September 15, 2008 at the Monticello Country Club. 2. Do not approve the charitable gambling request. C. STAFF RECOMMENDATION: Staff is not aware of any reason why the Council would not allow the State to issue this gambling license. D. SUPPORTING DATA: Resolution approving charitable gambling license. CITY OF MONTICELLO RESOLUTION N0.2008-60 RESOLUTION AUTHORIZING THE ISSUANCE OF A ONE DAYCHARITABLE GAMBLING LICENSE WHEREAS, the St. Michael-Albertville Rotary Club has submitted an application to the City Council of Monticello for aone-day charitable gambling license for a raffle at the Monticello Country Club on September 15, 2008,. WHEREAS, the Council is not opposed to the gambling license being issued by the State Gambling Control Board, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the application by the St. Michael-Albertville Rotary Club for aone-day charitable gambling license for September 15, 2008 to conduct charitable gambling activities at the Monticello Country Club is hereby approved and the State Gambling Control Board is authorized to process the application. Adopted by the Monticello City Council this 28th day of July, 2008. Clint Herbst, Mayor ATTEST: Jeff O'Neill, City Administrator Council Agenda: 7/28/08 5C. Consideration of Accepting Improvements and Authorizing Final Payment for the Meadow Oaks and CSAl3 39 Lift Stations Forcemain Im rovements Ci Pro'ect No. 2003-02C. (WSB) A. REFERENCE AND BACKGROUND: The project included the reconstruction of the Meadow Oaks and CSAH 391ift stations and the construction of forcemain and gravity sanitary sewer to reroute flows from the southeast service area of Monticello to the wastewater treatment facility. Reconstruction of these two sanitary sewer lift stations was necessary to accommodate the increasing flows due to expansion of the projected service area. Extension of watermain was also included in the project along CSAH 75 to provide a loop between the existing watermain systems on the east and west sides of CSAH 39. The project was substantially completed in July 2007 with final punch list items and paving completed in June 2008. The Council is being requested to accept the project as complete and authorize final payment to Barbarossa & Sons, Inc. in the amount of $27,564.67. The following paperwork has been recently submitted for final payment to be released: 1. Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax (IC134 forms). 2. Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured (lien waivers). 3. Consent of Surety to Final Payment certification from the contractor's surety. 4. Two-year maintenance bond. It should be noted that the maintenance bond will start and extend two years from the date of final acceptance of the project by the City Council. The final payment request represents the final quantities completed on the contract and the release of the retainage on the contract. All punch list items assembled for this project have been completed, and WSB & Associates, Inc. is indicating the project is complete and ready for final payment in accordance with the contract and City of Monticello Engineering and Construction Standards. B. ALTERNATIVE ACTIONS• 1. Motion to accept the improvements and authorize final payment of $27,564.67 to Barbarossa & Sons, Inc. 2. Motion to deny accepting the improvements and authorizing final payment. Council Agenda: 7/28/08 C. STAFF RECOMMENDATION: Staff recommends selecting Alternative No. 1. D. SUPPORTING DATA: Copy of Construction Pay Voucher No. 8 (Final) Letter from WSB & Associates, Inc. wsB & Associates, Inc. Infrastructure 1 Engineering 1 Planning 1 Construction July 23, 2008 Honorable Mayor and City Council City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Attn: Ms. Dawn Grossinger, Deputy City Clerk Re: Construction Pay Voucher No. 8 (Final) Meadow Oaks and CSAH 39 Lift Stations City of Monticello Project No. 2003-02C WSB Project No. 1501-00 Dear Mayor and Council Members: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Te1:763-541-4800 Fax:763-541-1700 Please find enclosed the final Construction Pay Voucher No. 8 for the above-referenced project in the amount of $27,564.67. Also enclosed is the following documentation required for processing final payment for the above-referenced project: 1. Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax (IC134 forms). 2. Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured (lien waivers). 3. Consent of Surety to Final Payment certification from the contractor's surety. 4. Two-year maintenance bond. It should be noted that the maintenance bond will start and extend two years from the date of final acceptance of the project by the City Council. Please make payment in this amount to Barbarossa and Sons, Inc. at your earliest convenience. Thank you. Sincerely, WSB & Associates, Inc. •~~~ ~ ~~~ Kevin F. Newman, PE Project Manager Enclosures cc: Tom Kelly, City of Monticello Jeff O'Neill, City of Monticello Bruce Westby, City of Monticello Tom Bose, City of Monticello Paul Flykt, Barbarossa and Sons, Inc. Ih ACEC 2008 Firm of the Year Minneapolis 1St. Cloud Equal Opportunity Employer r•.uvrivivvsor•oo~c~~..nman~~~~vrxvoaF,vtrn•n~••onios-~.F,~n~~ JUL-23-2008 10:41 WSB & ASSOCIATES JUL-23-2008 10:12 Barbarossa & Sons u ~ gut-vv - t t1r r vt~w+v~ v Owner: City o+f Monticelb 505 Walnut St Monitcefto, M111 X362-1147 ~~ For Period: 1/1712008 ~ 71'9!2008 Contractor: Barbarossg ~ Sons, Inc. dt.~ao~rlRS, ~;. 19000 93rd Ave H Osseo, MN 55;169 Pay Voucher Meadow Oaks and CSAH 39 Lilt Stations Client Contract No.: Project No.: 01501-00 Client Project No.: 2003-02C 7635411700 P.03i06 763 425 0797 P.003 Date: 7/912008 Request No.: $ 8~ FINAL Prot ect SummaOt 1 Original Conbad Amount $1,480,493.20 2 Contract Changes -Addition $1gg,O47.85 3 Contrail Changes - peduction $p,00 4 Revised Contract Amount $1,678,541.05 5 Value Completed to t7ate $1,697,568.39 6 Material on Hand $0.00 7 Amount Eamed $1~gg7~~g,gg 8 Less Retalnage $0.00 9 Subtotal $1,697,568.39 10 Less Amount Paid Previously $1,670,003.72 11 Liquidated Damages $O.pO 12 AMOUNT' pUE THIS PAY VOUCHER N0.8 S FINAL $27,584,87 HEREBY CERTIFY THAT A FINAL EXAMINATION HAS BEEN MADE OF THE ABOVE NOTEO CONTRACT, THAT THE CONTRACT HAS BEEN COMPLETED, THAT THE ENTIRE AMOUNT OF WORK SHOWN IN THE FINAL VOUCHER HAS 8EEN PERFORMED AND THE TOTAL VALUE OF THE WORK i'IERFORMED IN ACCORDANCE WITH, AND PURSUANT TO, THE TERMS OF THE CONTRACT IS AS SHOWN IN THIS FINAL VOUCHER. Recommended for Approval by: WSB 8 Associates, InG. ' ~oved by Contractor. ~9 roses 8 Sow, Inc„ n Specified Contract Completion Date: 1 9 006 Comment Construction Observer. Approved by Owner. City of Monticello Date: t of 4 JUL-23-2008 10:41 ~JSB & ASSOCIATES JTJL-23-2008 10:12 Barbarossa & Sons Project Material Status 7635411700 P.04i05 763 425 079? P.004 Item No. Item peacription Unke UnlPriao Contras Qua,MkY Quarnlty~a Dote Current Quantify Amount to Data Schedule A - Meatlow Oaks Lift 5tadon 1 2021.301 MOBfUTJlT1CN LUMP SUM ;15,000.00 t 1 4 515,OOD.00 2 2101.511 CLEARING ANO GRUBBING WMP SUM 57.00 1 0 0 SD.00 3 270a.50i REMOVECUR6ANDGUTTETt L1Nh"f 53.00 Sat 381 0 51,143.00 4 2104bO5 REMp1(EBtSUNgNOUSPAVEAAENT SQYp 52.00 902 902 0 51,004.00 6 2106.bOt COMMQN EXCAVATION GU YD ;e.~ 1500 1000 0 56,000.00 S 2211.507 AOGRI=GATE SASE CLASS 5 MOD TCN 517'.00 400 400 0 36,800.40 7 2350SD1 TYPE LV 4 ViIEARINO COURSE MUtTURE (8) TON 568.20 12T 127 22 58,661.4D 8 2350.502 TYPE LV 3 NON IMEARtN3 GOURSE MlXTt1RE (B) TON 568.90 127 130.6 0 58,737.14 9 2357.502 BITUMINOUS MATERIAL FOR TACK COAT QA4,LON 33.00 68 0 0 30.00 10 2506.601 CONSTRUCT ur'"P57ATION LUMP SUM 5281,300.00 1 1 0 5281,300.10 11 2531,541 CONCRETE CURB JL GUTTER DESIC3N 9612 LiN FT 576.40 482 578 0 56,901.20 tZ 2564.537 SIGN PANELS TYPE C SOt FT ;90.D0 2 2 2 5180.00 13 2564.802 PAVEMENTMESSA3E (HAtvDICAPPEDSYMBOI) EPOXY EACH 5125.00 1 t 0 ;125.00 14 2584.803 4- SOLID LINE WMITE•EPOXY UN F1' S1.OD 421 327 0 53,21.00 15 2573.502 SILT FENCE, TYPE MACHINE SLICED UN t-r 53.00 802 600 0 57.800.00 7B 2575.805 SF~DING, MIX 240 (INCL. TOPSOLI, b FERTILIZER) ACRE 54,500.00 03 0.5 0 5'1,2$0.40 Totals For SoCtiOn Schedulb A - Moetlow Oaks LIR Statbn; 5343,022.74 Schedgle B -Sanitary SQWRr, ROtee Main, and Water Ma1n 17 2071501 MOBlL12ATiON LUMP SUM 523,600.00 1 7 0 523,600.00 18 2101.571 CLEARING, AND GRUBBING LUMP SUM ;1,500.00 7 0 0 50.40 19 21 D1,501 REMOVE CURB AND GUTTER LIN FT 53.00 346 295.3 0 5886,50 20 Z104.SD5 Rt:MO1fE BITUMINOUS PAVEMENT SO YD 52.00 730 889,$ 0 Sf,7?9.00 21 2104.50'9 fYE1V10VEMANHPLE(SJWITARY) t3AC1i $2StS.OD S s 0 ;1250,00 2Z 2104,603 A$ANt?ON PIPE FORCLMAIN LIN FT 54.50 2000 1943 0 58,868.50 23 2105.801 DEWATERIPtG fiJMP SUM 578,400.00 1 1 0 . ;18,1X10.00 2~ 2360.804 817UMINOUS MIXTURE FpR t7RIVEYYAY SQ YO Sf 250 234 2l99 0 : ;2,882.78 25 2350.804 BITUMINOUS MIXTURE FOR STREET SQ Y4 519.20 482 889;8 0 672,856.32 26 ' 2503.517 2P AVC PIPE SEINER UN FT 11179,00 2296 2306 0 6274.652.00 2T 2503.802 CONNECT TO EXiSTiNG SANITARY St_NfER EACH 1i1$,p00A0 2 2 0 ;36,00090 2B 2543.602 CONNECT TO E705TlNCi FORCE MAIN EACH $3.300.00 3 3 0 36,900.00 29 2503.603 12' FORCE MAIN DUCTILE IRON CL 50 L1N FT 552 GO 1020 1030 0 553,560,00 30 2503.803 TELEVISE SANITARY SEWER LIN FT 51.50 2296 2208 0 53,312.00 31 2503.803 8'• FORCE MAIN DUCTILE IRON CL SZ UN FT ;32.D0 1248 1280 0 540,960.00 32 2504.802 CONNECT'tU EXISTINt3 WATER MAIN EACH 3800.40 2 2 0 51,500.00 33 2504.602 HYDRAM EACH 52,700.00 t t 0 52,700.00 34 2504.602 6" GATS= VALVE AND t30D( EACH ;800.00 1 t 4 5800.00 35 250x,603 6" WATER MAIN~it`,'C IRON CL 52 LIN RT 7130.00 8 8 0 3130.00 3B 2504.603 12-WATER MANV-0UCTILE IRON CLASS 50 UN F1' 538.00 945 907 0 534,488.00 37 2504.603 24' STEEL CASING'PIPE (JACIQ=D) UN RT 52x0.00 92 it3 0 ;27,72D.00 38 2504.803 36' STEEL CASING PIPE (JACKER) UN P7 5370.D0 314 314 0 51 f6,t80.OD ~ 2504,608 OUCTILE IRAN FITTINGS POUND 53.20 2000 1915 0 34.273.00 40 2506.842 CASTING ASSEMBLY(S/WITARY) EACH 5320,00 8 9 0 52,880.00 11 2$06,803 CONST 48- CIA SAN SEINER MANHOLE UN FT 5790.00 105 113.13 0 521,484,70 42 2531.507 CONCRETE CURS d, GUTTER DESIGN 8618 LIN FT 578.00 34d 352.1 O 55,8 1313.80 ~ 2 $33,644 CONCRETE MEDIAN BARRtt:R DESIGN 8307 LIN PT 512.00 2805 2805 0 533,680.00 44 2 383.801 TRAFFIC CONTROL LUMP SUM ;22,000.00 1 1 0 522,000.00 45 2 $73,$02 SILT FENCE, TYPE MACHINE SUCED LIN FT 55.00 120 0 0 SD.00 46 2 573.530 S NLET PROTECTION TYPE D F.ACIi 515090 2 0 0 SOAO 47 2 57$,601 EROSION CONTROL LUMP Still 52,500.00 1 1 0 52,500.00 48 2 575805 St_EDING, MIX 240 (INCL. TOPSOIL 3 FERTILRER) ACRE 52500,00 3S 4.89 0 512,225.00 2 of 4 JUL-23-2008 10:41 IJSB & ASSOCIATE5 7635411700 P.05i06 JUL-23-2008 10:13 Barbarossa & Sons 763 425 0797 P.005 wcarlesuay, JWy'L~, zUC}~ Item No. ILIm Derrliption t.laila Unit Price Corrtr~ct Ouantny to Current Amount t0 49 90530 SALVAGE AND REINSTALL PIPE CULVERT Vim- SIZ$S) tJN FT 522 00 Quantify Date Ouentiry Late 50 91>73 TRACER WIRE MARKER EACH . aD 675 133 11 0 D SD.OD . 3 1 6376.00 Totals FaSectton Sehedute B - San~Te ry Sewer, Forco Main, and captor Main: 5773 404 40 Std Anernate #1-CSAH SB Llti Stagon , . 51 2021.501 MOBILIZATION LUMP SUM 315,000,00 7 1 5Z 2101.511 CLEARitdG AND GRUt38INp LUMP SUM 6500 00 0 S15,000.OD 53 2704,$07 REMOVE SEWER PIPE (570W1r!) LM FT . 574 00 1 0 0 50.00 54 21D4.S01 REMOVE FENCE . 100 16D D 52,240.DD 55 2104.605 REMOVE B[171MINOUS PAVEMENT LIN FT ~ ~ x.00 iT8 0 p 50.00 Sf7 2105.501 COMMON IXCAVATtON CtJ YD 52.50 271 21 i 0 S52T.50 57 2211.507 AGGREGATl: BASE CLASS S MOD TON 5$.00 1000 SOD D S2,SOO,DD 56 2350.501 TYPE LV 4 WEARING COURSE MIXTURE (B) TON 518.00 265 256 0 54,608.00 39 2350.502 TYPE LV 3 NON WEARING COURSE MIXTURE (~ TON 576.80 70 46.5 b6.5 55,107.20 60 2357 502 BITUMINOUS ~M T 375.50 TO pg.4 0 37,304.70 . A ERtAL FOR TACK COAT vauoN oo 6a se 61 2501.521 44- SPAN RC PIKE ARCM CULVERT CLASS nw LIN 1T . St 75 00 2D0 D D so.oo ~ 2501.6?5 44° SPAN RC PIPPARCH APR[NV , 20D D 523,t700.p0 ~ 2307.602 TRASH QUARD FOR 44• SPAN RIPE APRON F.AC71 51,460.00 • { 0 .65,800.00 64 2506.607 CONSTRUCT LtFTSTATION EACH 57,300.00 4 4 0 S$,gQ0.00 45 2511 501 RAt~IOC~IVt RlPRAp CLASS iV .GROUTED LtlltAP SUM 5289,000.00 1 1 0 5289,000.00 66 25tt,515 GE07B)(7ILE FILIt:R TYPE fV Cv YD ;110m 54 54 0 SS 94D.00 67 2673.502 SILT FENCE, TYPE MACHINff SLICED ~ ~ ~.~ ~ ~ 0 6~'~ e$ 2575,523 EROSION CONT'ROI BLANKETS CATEGORY 3 UN ~ 53.00 425 400 D 51,20D.00 ~ , SQ YO 2575.605 SEEDING, MIX 440 (INCtr FERT., MULCH DISC ANCHOR) ACRE ~ ~ C~ 615~ ~ , 64,6pD_DD ° 2 ' Change Ordsr 1 Yatats For Section Bb Alternate iN - CSAH 3ti Llil Slalion; 5984:412.~p TO 2021.501 MOBILIZATION LUAAP SUM 513,000 OD 1 1 71 2503.BDZ CONNECT TO EXIS71NCi3ANITARYS4WER EACH . 000 00 63 0 513,000,00 72 2503.511 30" CCFRPM RIPE SEWER LIN FT , . 5387 00 T 205 7 0 S3,OOD.00 ~ 2621.601 DEWATERING . 201 0 577,787.00 74 2503.803 TELEVISE SANITARY SEINER WMP SUM 676,DDOAO 7 1 0 576,000.00 75 2506.602 CASTING ASSEMBLY (MAIdh10( E~ LuV FT A 51.50 205 207 D ~OT,50 ~ . 25o6.6D3 CONST 80" OTA SAN SEWER MANHOLE E CH S3SO.DD 1 1 D 5350.00 77 ?504.902 CONNECT TQ EXISTING WATER MAIN LIN FT S24D.00 3P.5 37.5 0 58,ODD.Op 78 25x.603 16' WATER MAIN DUCT IRON Gl SO EACH 385D 00 1 7 0 5850.00 7a 25pq,~ TEMPORARY HYDRANT UN FT 647.DD 175 180 0 68,480.00 ~ 2503.620 DUCTtLE IRON FITTINGS L4CH 62.60D.oD T 1 0 52,600.00 PauNO 64.so s7D s7o a Sz,62z.~ Ctlaaga Ordor 2 Totals Far ChanQa OtrJbr 1: 5193,970.5D 81 2506.601 LIFT STAt'tON SOFT START BYPASS LtIMR SUM 758 62 35 , . 1 1 1 $2,758.35 ---- TotalgForChsnAeOrder2: 52.758.35 3 of ~• JUL-23-2008 10 41 WSB & ASSOCIATES JUL-23-2008 10:13 Barbarossa & Sons Project payment Status Owner. City of Monticello Client Project No.: 2003-02C Client Contract No.: Protect No.: 07501-00 contractor: Barbarossa ~, Sons, Inc. 7635411700 P.06i06 763 425 0797 P.006 rr ~.uub.D~, q~ , JUl" LJ, LVVU Contract Chan No. Type hate Description Amount C01 Change 8006 Additional contract quantities (utility extension past the Karlsburger Foods site Order - WSB Project Na 1627-45). $195,289.50 Cb2 Change 7/2312008 Add soft start b Order Ypass switches for the lift station control panels. $2,758.35 Change prder Totals: $198,047.85 Payment Summary No. From pate To Date Payment Tots! Payment Retainage Per Payment Total Retainage Completed 1 7/1/2006 713//2006 $784,271,97 $184,271.97 $9,698.53 59,698.53 $193,970.50 2 811!2006 9/30/2006 $303,305,55 $4$7,577.52 $15,963.45 $25,fi61.98 $513,239.50 3 10!1/2006 70137/2006 5935,447.67 $1,423,015.19 $49,234.08 $74,896.06 $1,497,921,25 4 11/1/2006 1/9/2007 $91,373.99 $1,514,398.18 $4,809.16 $79,705.22 $1,594,104.40 5 1/70/2007 7/3112007 $54,421.89 $1,568,821.07 $2,864,31 5$2,569,53 $1,651,390.60 6 8/1/2007 1220/2001 $33,707.75 51,602,528.$2 51,774.08 $84,343.62 $1,686 872 44 7 122112007 1/76!2008 567,474.90 •$1,670,003,72 ($67,474.90) $16,868.72 , . $1,686,872.44 $ &.F1NAL 11'1712008 7/912008 $27,564.67 $1,697,568.39 ($16,868.72) $0.00 $1,697,568.39 Payment Totals: $1,697,568.39 $0.00 $1,697,568,39 PLoj`eCt Sun'^~a^! Material Orti Hand: Total Payment to Date: Total Retainage: Total Amount i_arned: $0.00 $9,fi97,588,39 Original Contract: $0.00 Contract Changes: $1.697,568.39 Revised Contract: $1,480,493.20 $198,047.85 $1,678,541.05 4 of 4 TOTAL P.006 TOTAL P.06 Council Agenda: 7/28/08 SD. Consideration of Accepting Improvements and Authorizing Final Payment for the Realignment of Territorial Road, City Proiect No. 2005-21C. (WSB) A. REFERENCE AND BACKGROUND: This project included the realignment of Territorial Road due to the railroad crossing closure agreement with BNSF. The roadway was constructed with a 12-foot wide gravel surface within an easement obtained from the Busch property. The roadway was accessible by June 30, 2008, which was the deadline to complete construction as per the BNSF agreement. Public Works has installed barricades on either side of the railroad tracks at the old Territorial Road crossing. The Council is being requested to accept the project as complete and authorize final payment to Schluender Construction, Inc. in the amount of $16,087.00. The following paperwork is still required for final payment to be released: Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax (IC 134 forms). 2. Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured (lien waivers). 3. Consent of Surety to Final Payment certification from the contractor's surety. 4. Two-year maintenance bond. It should be noted that the maintenance bond will start and extend two years from the date of final acceptance of the project by the City Council. The final payment request represents the final quantities completed. All punch list items assembled for this project have been completed, and WSB & Associates, Inc. is indicating the project is complete and ready for final payment in accordance with the contract and City of Monticello Engineering and Construction Standards. B. ALTERNATIVE ACTIONS: 1. Motion to accept the improvements and authorize final payment of $16,087.00 to Schluender Construction, Inc. contingent upon receipt of the final paperwork. 2. Motion to deny accepting the improvements and authorizing final payment. C. STAFF RECOMMENDATION: Staff recommends selecting Alternative No. 1. D. SUPPORTING DATA: Copy of Construction Pay Voucher No. 1 (Final) Letter from WSB & Associates, Inc. NrsB ~ ,r~.~.~,~. Infrastructure 1 Engineering 1 Planning 1 Construction July 23, 2008 Honorable Mayor and City Council City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Attn: Ms. Dawn Grossinger, Deputy City Clerk Re: Construction Pay Voucher No. 1 (Final) Territorial Road Realignment City of Monticello Project No. 2005-21 C WSB Project No. 1627-16 Dear Mayor and Council Members: Please find enclosed the final Construction Pay Voucher No. 1 for the above-referenced project in the amount of $16,087.00. Also enclosed is the following documentation required for processing final payment for the above-referenced project: 1. Satisfactory showing that the contractor has complied with the provisions of Minnesota Statutes 290.92 requiring withholding state income tax (IC134 forms}. 2. Evidence in the form of an affidavit that all claims against the contractor by reasons of the contract have been fully paid or satisfactorily secured {lien waivers). 3. Consent of Surety to Final Payment certification from the contractor's surety. 4. Two-year maintenance bond. It should be noted that the maintenance bond will start and extend two years from the date of final acceptance of the project by the City Council. Please make payment in this amount to Schluender Construction, Inc. at your earliest convenience. Thank you. Sincerely, WSB 8c Associates, Inc. • JL • ; ss~- Shibani K. Bisson, PE Project Manager Enclosures 70] Xenia Avenue South Suite 300 Minneapolis, MN 55416 Te1:763-541-4800 Fax: 763-541-1700 cc; Tom Kelly, City of Monticello Jeff O'Neill, City of Monticello Bruce Westby, City of Monticello Tom Bose, City of Monticello Robert Schluender, Schluender Construction Pending: 07/28/09 04/01/10 ACFC 2008 Firm of the Year Minneapolis 1St. Cloud lh Equal Opportunity Employer a~~„e.~.iF•,am,,,,,r,,,n,,.~~.M.~.a,.r,.crnro~r.~cr~re«H,-a~~e~w...r~na,~..,~,K JUL-23-2008 1?:26 WSB 8 ASSOCIATES 07-23-2008 16:59 5C1-SLENDER CONSTRUCTION 763 295 5544 JLi.`C rCKIJ LG~LV W.JY Y 1"M~Ier4171W v{ Vi f ~l V - ~ M, • VaWaaVa a ~' ~~~ Monde' MM 6~-114y F0~ Peelod: iNf~000 ba OOa Cbr: 6ahiwnOrr CorNrfn+abion X331 i01h Seraat irlF Moetlaello, MIN NMI2 MONT • Ter+ola-fei Rwli~run~.M CNeru Canffsai Na.: Pn~jad Na.: Oily-18 CNad Pro)eot No.: 7635411700 P.01i01 PAGE1 _ . .-..._ ~.~y....~ .. .-___ D~Ot: 7Mi110Y41 f~egwst No.: 1 i RgMAL 1 C.onbra~Anro~NN i"t7,310.00 2 Conirad Chrpas - Addlllon 10.00 3 Cantraot - Datls~lion X0.00 4 ReviNd ConO'rotAnaunt 517,910.00 6 b DMe i1tl,00T.00 S Ma~~ on H~ s0.00 r Ariount EeNrnd ~~e,067.00 ~ L«s ~o.oo a sv~odl s~aos7.oo 1o Laas a~o~,nc Ps1d so.oo ~~ I.galdal.a saoo ~z AMOUNT DUE THI8 PAY V!Oit1CHER NO. ~ a FlMAL :1iI,097.00 1 hIQIEBY CERTIFY THAT A FINAL EXAMINATION WAS BEEN MI1gE OF THE ABOVE NOTlrD CUNTRAC'i', TWAT THE CONTRACT HAS BEEN COMpI~, THAT THE ENTIti1: AMOUNT' OP WiORK ~IO>+NV NV 1'FE FINAL VOUCH&t HAS BEF,~! PERFORAAEb AND THE Tt7TAL VALUE OF THE WORK PERFOHMEQ IN ACCOROrWCE WITFI, AND PURSUANT TO, THE TERIYIS OF THE CONTRACT ~ A$ SHO'WM Mr THIS PIFIAI. VOEIC~R. R br ApprouoU by: YIISO i A ~ ,Ina ,_~ I ~ ~,,~ 7L t r 1 ~ .S~ ~~ , Approvrd by C.anbrac3pr: r sprciMd Canaact Compfetlon oala: TL1l~~ Comment Conan Obrervar Cad Mo ItOello Dabs: 1 of 3 H?-?3- 94s 4~ ~! ~R !~?l~'TIQ-~! ?63 TOTAL P.01 01627-16 -Pay Voucher 1 Project Material Status Wednesday, July 23, 2008 Item Item Description Units Unit Pr)ce Contract Quantity to Curcent Amount to No. Quantity Date Quantlty Date SCHEDULE A -STREET IMPROVEMENTS 1 2 3 2021.501 2104.501 2104 501 MOBILIZATION REMOVE CURB AND GUTTER REMOVE RETAINING WALL LUMP SUM LtN FT $250.00 $10.00 1 20 1 20 1 20 $250.00 $200.00 4 . 2105 501 COMMON EXCAVATION LIN FT $1.00 75 75 75 $75.00 5 B 7 8 9 10 11 . 21 D5.522 2112.501 2241.501 2531.507 2573.502 2575.805 2575.505 SELECT GRANULAR BORROW {GV) SUBGRADE PREPARATION AGGREGATE BASE CLASS 7 8" CONCRETE DRIVEWAY PAVEMENT SILT FENCE, TYPE HEAW DUTY SEEDING, MIX 240 {INCL. FERT., MULCH, DISC ANCHOR) SODDING, TYPE LAWN (INCL. TOPSOIL 8 FERT.) CU YD CU YD ROAD STA TON SQ YD LIN FT ACRE SO YD $8.00 $9.50 $100.00 $10.00 $100.00 $2.00 51,000.00 $2.50 190 360 4 300 12 800 0.1 450 502 380 4 374 12 250 D.1 0 502 380 4 374 12 250 0.1 0 53,012.00 $3,610.00 $400.00 $3,740.00 $1,200.00 $SD0.00 $100.00 $0.00 12 2101.501 CLEARING ANO GRUBBING LUMP SUM $3,000.00 1 1 t $3,000.00 Totals For SCHEDULE A -STREET IMPROVEMENTS: $16,087.00 Project Totals: $18,087.00 Z of 3 01627- i 6 -Pay Voucher 1 Project Payment Status Owner: City of Monticello Client Project No.: Client Contract No.: Project No.: 01627-16 Contractor: Schluender Construction Con r ct Chan Wednesday, July 23, 2008 No. Type Date Description Amount Change Order Totals: $0.00 Pavme.nt Summary No. i & FINAL From Date 6/1/2008 To Date 6/30/2008 Payment $16,087.00 Total Payment $16,087.00 Retainage Per Payment $0.00 Total Retainage $0.00 Completed $16,087.00 Payment Totals: $16,087.00 $0.00 $16,087.00 P~ ce t Summary Material On Hand: Total Payment to Date: Total Retainage: Totat Amount Earned: $o.oo $16,087.00 Original Contract: $0.00 Contract Changes: $76,087.00 Revised Contract: $17,310.00 $0.00 $17,310.00 3 of 3 Council Agenda: 07/28/08 SE. A. Consideration of CaAital Asset Policy. (KT & TK) REFERENCE AND BACKGROUND: Financial policies are guidelines for operational and strategic decision making related to financial matters. Financial policies identify acceptable and unacceptable courses of action, establish parameters in which the City can operate, and provide a standard against which the City's fiscal performance can be judged. Policies offer guidance to staff and council unfamiliar with a government's finances. Financial policies also serve as an ongoing context for management decisions, thereby providing consistency and quality control. The attached revised/updated draft of the City's Capital Asset Policy, which guides the finance staff and other personnel on the procedures to be followed in regards to capital assets. The policy outlines what is a capital assets, how they will be depreciated, tracked and disposed of. This policy is important not only because it guides the City finance staff on record keeping of capital assets for financial reporting purposes, but also provides an internal control function to help protect the City from theft or misuse of City assets (see item 4 of section 3). This policy revised some of the useful life time periods on the depreciation schedule to be more consisted, added discussion of the handling of projects and construction in progress (item #2 of section 3) for financial reporting and the addition of inventory of assets (item 4 of section 3). Al. Budget Impact: The Capital Asst Policy should have little budget impact as it's a guide on how to handle the financial reporting of these assets. A2. Staff Workload Impact: The inventory of the assets will require some staff time, but this should be some what minimal. B. ALTERNATIVE ACTIONS Approve the Capital Asset Policy as presented. C. 2. Approve the Capital Asset Policy with City Council adjustments. 3. Table the Capital Asset Policy. STAFF RECOMMENDATION: The City Administrator, Finance Director, and staff have reviewed the policy and support, Alternative 1, to approve attached policy. D. SUPPORTING DATA: Draft Capital Asset Policy. CITY OF MONTICELLO Accounting Policies and Procedures Manual Capital Assets City of Monticello, MN CAPITAL ASSET POLICY 1. Purpose The capital asset policy is designed to provide guidance to City staff involved in purchasing, recording, tracking, and disposing of capital assets by specifying procedures to be followed. 2. Goals The goals of the capital asset policy aze: A. To ensure that capital assets aze tracked and recorded consistently and according to policy. B. To provide an internal control structure over capital assets. C. To provide accurate capital asset values and records to annual financial statements and reporting. 3. Procedure A capital asset is determined to be an asset or item with a cost of at least $5000 per asset and a life expectancy of greater than one yeaz. Assets with a cost of less than $5000 will be classified as supply expenditure. The classes of capital assets will be: land, parking lots, buildings, infrastructure, improvements (other than buildings), machinery and equipment, office equipment and furniture, and motor vehicles. Construction in Progress will be recognized as an asset but is not eligible to be depreciated until the project is completed and/or asset is transferred to the city. Thresholds applied to capitalized assets will be at least $5000 with the following exception: Art collections and historical treasures will be considered exempt from capitalization if they aze held for public exhibition or education, is protected and preserved, and is subject to a policy that proceeds from the sale of collectible items aze used to acquire other collectibles. Donations of capital assets from an individual or entity aze recorded at estimated fair mazket value at the date of acquisition for purposes of capitalizing the asset. Depreciation is the allocation of the cost of a depreciable capitalized asset over its estimated useful life. Straight-line depreciation will be the method used to allocate the cost on a monthly basis. Land, easements and construction in progress aze not considered depreciable assets. The determination of useful lives was made utilizing the following tables: CITY OF MONTICELLO Accounting Policies and Procedures Manual Capital Assets CITY OF MONTICELLO CAPITAL ASSETS DEPRECIATION SCHEDULE USEFUL LIFE REAL PROPERTY -CLASS CODE DESCRIPTION MONTHS YEARS INFRASTRUCTURE 300 25 Infrastructure: Fencin and ates 240 20 Infrastructure: Im rovements 240 20 Infrastructure: Load Area 240 20 Infrastructure: Pazking Lots 120 10 Infrastructure: Pathwa s 240 20 Infrastructure: Roads/Streets curb, tter, sidewalk, street/si nal li hts) 480 40 Infrastructure: Sani Sewer 120 10 Infrastructure: Si a e 240 20 Infrastructure: Stormwater 480 40 Infrastructure: Watermain VEHICLES 96 8 Dum Trucks, Street De artment Trucks 240 20 Fire Trucks 120 10 Snow Plows, Street Swee ers, Slud a Trucks, Slud a Trailer 84 7 ATV 144 12 Tractor ,Streets and Pazks 60 5 All other vehicles WASTEWATER TREATMENT PLANT 180 15 Gravi Belt Thickener, Chlorinator, Di ester Cover 480 40 WWTP Ex ansion UTILITIES 300 25 Booster Station, Water Tower, Wells 300 25 Lift Station MACHINERY & E UIPMENT 120 10 Bike Pazk, Indoor Pla Structure/MCC 84 7 Black To Hot Mix 96 8 Brush Cutter, Lo Slitter, Trailer with Lift, Dum Box, Flatbed 60 5 Cash Re ister S stems 144 12 Crane, Tractor 120 10 Election E ui ment, Securit S stem , Si nal Control 120 10 Fire Rescue Tool 120 10 Fuel Tanks, Stora a Tanks 84 7 Generator, Com ressors, Air Tanks 240 20 Irri ation S stems 240 20 Office Cubicles, City Hall 180 15 Office Cubicles, MCC & DMV 240 20 Library Book Shelving, Storage Shelving, Reception & Checkout Counters 120 10 Loader, Skid Steere, Black top Planer, Backhoe, Paver 84 7 Mower , Truckster 60 5 Playground Equipment/, Skate Pazk Ramps, Pool Fixtures/Toys CITY OF MONTICELLO Accounting Policies and Procedures Manual Capital Assets USEFUL LIFE REAL PROPERTY -CLASS CODE DESCRIPTION MONTHS YEARS MACHINERY & E UIPMENT continued 48 4 Seeder, S ra er, Salt Brine mixer 84 7 Trailer 84 7 Snow Blower, Genie Lift, Jet Roddin Machine 120 10 Walk-In Cooler, Wine Racks, Shelvin 60 5 Router, Compactor, Sewer Camera 120 10 Wheel Loader, Chemical In'ection/Iron Filtration E ui ment BUILDINGS 360 30 Animal Control, Public Works Sho ,Old Libr , Warmin House 480 40 Buildin Ex ansion Li uor Store, Ori final Li uor Store 480 40 Communi Center 480 40 Fire Hall 480 40 Libr ,New 360 30 Pole Buildin and Gaza es 480 40 WWTP Administration and Slud a Buildin s 264 22 Pazk Concession Stand and Shelters, Chamber Office, Hel Center, PW Office 240 20 Pazk Gazebo 240 20 Pazk Lo Shelter 360 30 Rental House IMPROVEMENTS 180 15 Climbin Wall, Wood Floor (MCC ), Li htin S stems 300 25 Fencin & Gates, Retainin Walls 120 10 Guard Hut skate azk), Swan Scul tore, Landsca in 144 12 Hocke Rink, Ball field Bleachers 240 20 Sound roofm Tiles (MCC) TECHNOLOGY 36 3 Software s stems 36 3 Computer E uipment CITY OF MONTICELLO Accounting Policies and Procedures Manual Capital Assets Classification of Buildings versus Improvements (related to building_sl BUILDINGS can be purchased or constructed. Costs to be capitalized for a purchased building can include: • original purchase price • expenses incurred to make it ready for the intended purpose • environmental compliance • professional fees • unpaid or accrued taxes to date of purchase • cancellation or buyout of existing leases • other costs associated with placing the asset into operations Costs to be capitalized for a constructed building can include: • project costs • interest accrued during construction • excavation, grading or filling of land • preparation of plans • building permits • professional fees • temporary buildings used during construction • unanticipated costs such as rock blasting • permanently attached fixtures or machinery that cannot be removed without impairing the use of the building • additions to buildings (expansions, extensions, enlargements) IMPROVEMENTS to buildings should only be capitalized if part of a major repair or rehabilitation project, which increases the value and/or useful life of the building. Each determination should be handled on a case-by-case basis. These guidelines can be utilized for capitalizing costs as improvements rather than expensing as repair and maintenance: • The costs exceed the capitalization threshold ($5000), and • One of the following criteria is met: a. the estimated life of the asset is extended by more than 25% b. the cost results in an increase in the capacity of the asset c. the efficiency of the asset is increased by more than 10% Improvement values can include: • conversion of attics, basements, etc to usable business space • structures attached to existing buildings (such as patios, garages, enclosed stairwells) • installation or upgrade of heating and cooling systems • installation or upgrade of wall or ceiling coverings (such as carpeting, tiles, paneling) • structural changes such as reinforcement of floors or walls, installation or replacement of beams, rafters, or other interior framing • installation or upgrade of windows or doors and frames • interior renovation associated with casings, light fixtures, ceiling trim, etc. • exterior renovation such as installation or replacement of siding, roofing, masonry, etc. • installation or upgrade of plumbing and electrical wiring • installation or upgrade of phone or television systems, networks, fiber optic or wiring for installation of equipment that will remain in the building • other costs associated with the above improvements CITY OF MONTICELLO Accounting Policies and Procedures Manual Capital Assets 2. Projects and Construction in Pro ress (CIP) The City designates projects for significant new assets or upgrades to existing assets, which may consume a considerable amount of time and/or dollars. Projects may involve infrastructure, buildings, and/or improvements. These projects may also be public (city) or private (developer). A unique project code is assigned during the planning phase of each project. Projects that are public (city) are assigned a project code with a "C", i.e. 2004-1OC, and projects that are private (developer) are assigned a project code with a "P", i.e. 2004-04P. This coding mechanism allows the two types of projects to be distinguished from one another. This code will be used to track project costs from start to finish. If a public (city) project is not completed by December 31 of any given year, the accumulated costs will be capitalized as the value for the asset at that point in time. One asset number will be assigned to the project and designated as Construction in Progress (CIP) until fmal. Finalization requires approval of City Council and assurance by the finance department that all payments have been made. Once the project is fmalized the CIP asset will be disposed of and a depreciable asset will be added to replace it. For many projects, more than one asset may be added to replace the project. For example, a project may include streets, sewer and water infrastructure. Therefore, each type of asset is assigned a value based on appropriate documentation and added to the capital asset system. If a project's total cost is over the $5000 capitalization limit; however, the individual components of the project are all under $5000, the assets will not be added as a capital asset but expensed. Also if one asset is over $5000 and another is not, all assets associated with the project will be capitalized to account for the entire project. A private project (developer contract) will not be capitalized until the project is fmal and accepted by the City Council. The developer should be responsible for establishing the value of the project with the city. Disposals - Accounting_and Reportin Ig slues Department heads shall be responsible for reporting disposal of capital items to the finance department. The fmance department will record the disposal in the capital asset system. When the entries are interfaced to the general ledger, additional entries will need to be determined to record possible gains or losses. BUSINESS-TYPE (ENTERPRISE) FUNDS: Gains will be receipted to an account designated as an "Other Source" in the appropriate enterprise fund. Losses will be recorded against an account designated as an "Other Use" in the appropriate enterprise fund. Gains and/or Losses in enterprise funds will be reported together on the Statement of Activities under General Revenues as Gain/Loss on sale of capital assets. GOVERNMENT-TYPE (998) FUNDS: Gains are receipted to the appropriate account number at the fund level. (Example: Sale of City Property-Public Works). These receipts do not need to be recorded in Fund 998. Losses will be recorded against "Investment in Fixed Asset" account in Fund 998. CITY OF MONTICELLO Accounting Policies and Procedures Manual Capital Assets Capital Asset Inventory The fmance department will distribute a list of inventory, by department, to each department head annually during the fall of each year. This list will show what each department should have regarding capital assets. It will be the department head's responsibility to verify the inventory form, accounting for any changes in their department's inventory, and return it to the finance department. The fmance department will then do any necessary adjustments, transfers, or disposals to the capital assets system, to account for these changes. A physical inventory of the City's capital assets will be conducted at least every four years by the fmance department staff in conjunction with the various departments. Random inventories maybe conducted by staff at any time also. The appropriate adjustments will be made to the capital asset system. Any significant variances will be investigated and policies and procedures will be adjusted accordingly, if necessary. This Capital Asset Policy is effective Capital Asset Policies. and supersedes all previous City Adopted by the City Council of Monticello this day of _, 2 Attest: Mayor City Administrator Council Agenda: 7/28/08 5F. Consideration of approving contributions. (JO) A. REFERENCE AND BACKGROUND: The City has received donation of $100 from Goldberg Bonding to use for expenses relating to National Night Out. As required by state statute, if the City accepts the donation of funds, the City Council needs to adopt a resolution specifying the amount of the donation and its use. A.1. Budset Impact: The donation has negligible impact. A.2 Staff Workload Impact: None A.3 Council Priority: Not applicable B. ALTERNATIVE ACTIONS: 1. Approve the contribution and authorize use of funds as specified. 2. Do not approve the contributions and return the funds to the donors. C. STAFF RECOMMENDATION: Staff recommendation is to adopt the resolution accepting the contributions. D. SUPPORTING DATA: Resolution No. 2008-58 City of Monticello RESOLUTION N0.2008-58 RESOLUTION APPROVING CONTRIBUTIONS WHEREAS, the City of Monticello is generally authorized to accept contributions of real and personal property pursuant to Minnesota Statutes Sections 465.03 and 465.04 for the benefit of its citizens and is specifically authorized to maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Said gifts maybe limited under provisions of MN Statutes Section 471.895. WHEREAS, the following persons and or entities have offered to contribute contributions or gifts to the City as listed: DONOR/ENTITY DESCRIPTION VALUE Goldber Bondin Cash donation $100.00 WHEREAS, all said contributions are intended to aid the City in establishing facilities, operations or programs within the city's jurisdiction either alone or in cooperation with others, as allowed by law; and WHEREAS, the City Council hereby finds that it is appropriate to accept the contributions offered. NOW THEREFORE BE IT RESOLVED by the City Council of Monticello as follows: 1. The contributions described above are hereby accepted by the City of Monticello. 2. The contributions described above will be used a~ designated by the donor. This may entail reimbursing or allocating the money to another entity that will utilize the funds for the following stated purpose: DONOR/ENTITY RECIPIENT PURPOSE Goldber Bondin Monticello Communi Center National Ni t Out Adopted by the City Council of Monticello this 28th day of July, 2008. Mayor, Clint Herbst ATTEST: Jeff O'NeBl, City Administrator contributions block patty resoiutioadoc: 7/"22/2008 SG. Consideration of approving_a Non-DOT Drug_and Alcohol Policy for City of Monticello emploYees• (KB) A. REFERENCE AND BACKGROUND: As part of our continuing efforts to update the employee policies for the City of Monticello, it was important to formally develop the City's Drug Free Workplace Policy. This policy will provide a clear understanding of the City's position on the detrimental effects of drug and/or alcohol use while on the job. It will serve as an educational piece as well as clear guidelines as it pertains to the employee and the employee's job with the City of Monticello. The original push to move this policy forward came from the Public Works department for their seasonal and temporary employees. As a start, our policy will define this group for pre-employment testing, however, the policy will also identify that all employees can be tested for reasonable suspicion, accident or injury. Our employees who carry a commercial drivers license have their testing requirements covered by the federal DOT program. This policy has been reviewed by our Human Resource consultant, Sherrie Le as well as Joel Jamnik our City Attorney. Both of them have identified that this policy is ready for Council approval and then implementation. Implementation will be in the hands of our new Human Resource Manager to educate all supervisors and employees on this new policy and finalize any details, such as ordering testing kits, etc. Budget: The Public Works department hires at the high end 18 seasonal and temporary employees per year. Each sample collection fee is $27 each at the Monticello Clinic and the MedTox Laboratory analysis cost will be $15 each. Included in this $15 will be the testing kits and all forms needed. There maybe additional costs incurred if there is a positive test requiring a confirmatory test. This will have an approximate annual charge of $756 for preemployment testing with additional costs required if the need for testing based on reasonable suspicion, accident or injury. Staff Impact: This program will be administered by our Human Resource Manager as a part of her job description. Samples will be collected at the Monticello Clinic and sent to MedTox for laboratory services. They will respond back to our Human Resource Manager for follow up. B. ALTERNATIVE ACTIONS: 1. To approve the City's Drug Free Workplace, Drug and Alcohol policy as submitted. 2. To not approve the City's Drug Free Workplace, Drug and Alcohol policy. C. STAFF RECOMMENDATION: All staff and the City will benefit from a safe, drug and alcohol free workplace, therefore the staff recommend alternative 1. D. SUPPORTING DATA: A copy of the Drug Free Workplace, Drug and Alcohol Policy. CITY OF MONTICELLO DRUG-FREE WORKPLACE, DRUG AND ALCOHOL POLICY I. Purpose The City of Monticello recognizes that alcohol and drug abuse adversely affects employees' job performance and the kind of work they can perform and may affect their opportunities for continued employment. It is the intent of this document to provide employees with our policy regarding the use of drugs and alcohol. The policy provides guidelines for consistent handling throughout the City of alcohol and drug abuse occurrences. The City does not intend to intrude upon the private lives of its employees. The City is concerned, however, about the use of alcohol and/or drugs where such use adversely interferes with an employee's job performance, adversely affects the job performance of other employees, endangers the employee, the public or other staff, or is detrimental to the City's ability to provide consistent high quality service. II. Scope The pre-employment testing portion of this policy applies to all finalists for seasonal or temporary employment in the Public Works department, excluding clerical employees. Pre-employment drug testing will only be required after a conditional offer of employment is made. The reasonable suspicion portion of this policy applies to all City employees. The policy is applicable at all City facilities and whenever City employees are performing City business. Employees are expected and required to report to work on time and in appropriate mental and physical condition for work. It is the City's intent and obligation to provide adrug- and alcohol-free, safe work environment. The use of alcohol or drugs may seriously affect an employee's performance. They may also endanger the employee's health and safety as well as the safety of other employees. It is, therefore, appropriate that guidelines be established for the control of alcohol and drugs as they pertain to the employee and the employee's job with the City of Monticello. This policy supplements, but does not replace, the Drug and Alcohol Testing Program required by the Federal Highway Administration Rules and Regulations for employees who are required by the City to hold a commercial driver's license. III. Definitions A. "Work Related Alcohol and Other Drug Abuse" is defined as the use ofmood-altering drugs, including all forms of alcohol, narcotics, depressants, stimulants, hallucinogens, marijuana, or the use of prescription drugs when resulting behavior or appearance adversely affects work performance. B. "Adversely Affect Work Performance" and "Under the Influence" shall be determined to be present if the employee is perceptively impaired, has impaired alertness, coordination, reactions, responses, or efforts; if the employee's condition threatens the safety ofhimself/herself or others; or if the employee's condition or behavior presents the appearance of unprofessional or irresponsible conduct detrimental to the public's perception of the City as an employer as determined by the supervisor or manager or other staff member observing the employee. C. "Controlled Substances" means those substances whose distribution is controlled by regulation or statute, including but not limited to: narcotics, depressants, stimulants, hallucinogens, and marijuana. D. "Mood-Altering" or "alter" means changed behavior which may limit an employee's ability to safely and efficiently perform his/her job duties or which poses a threat to the safety of the employee or others. N. Non-Discrimination The City recognizes that disabled individuals should be protected from discriminatory treatment. Under Minnesota law, a disabled person is someone who has a medical or psychological condition that materially impairs major life activities. However, in accordance with Minnesota law, disability does not include any condition resulting from alcohol or other drug abuse which prevents a person from performing essential functions of the job or which creates a direct threat to property or the safety of individuals. V. Prohibitions A. No employee shall report to work under the influence of alcohol, marijuana, controlled substances or other drugs that affect his/her alertness, coordination, reaction, response, judgment, decision-making, or safety. B. When employee is taking medically authorized drugs or other substances, which may alter job performance, the employee is under an affirmative duty to notify the appropriate supervisor of his/her temporary inability to perform the job duties of his/her position or of any work-related restrictions that apply. Unless a prescribed drug is taken strictly as prescribed by a licensed physician, it may not be kept or taken on City premises, including parking lots, or in any City vehicle or any vehicle being used for City business. The ability to retain prescription drugs, or other controlled substances as evidence for legitimate law enforcement purposes is not affected by this provision. C. No employee shall unlawfully manufacture, distribute, dispense, possess, transfer, sell, purchase or use a controlled substance in the workplace or wherever the City's work is being performed. Possession, transfer and storage of drugs as approved for legitimate law enforcement purposes is excluded from this prohibition. D. No employee shall operate, use, or drive any City equipment, machinery, or vehicle while under the influence of alcohol, marijuana, controlled substances or other mood-altering drugs. Such employee is under an affirmative duty to immediately notify his/her supervisor that he/she is not in an appropriate mental or physical condition to operate, use, or drive the City's equipment. E. The City shall notify the appropriate law enforcement agency when it has reasonable suspicion to believe that an employee may have illegal drugs in his/her possession at work or on City premises. When appropriate, the City shall also notify licensing boards. F. Alcohol must not be kept or consumed in any City building, office, vehicle or on City premises, including parking lots*, except as approved for legitimate law enforcement purposes. The Monticello Community Center has a limited exemption from this requirement for events as authorized by the City Administrator. Other exceptions for special events maybe authorized by the City Administrator. * Alcohol can be kept in an employee's personal vehicle consistent with state law, although employees cannot consume alcohol in their vehicles, or on City premises unless it is for an approved function that allows alcohol. G. Alcoholic beverages must not be consumed anywhere during work time, rest breaks, meal breaks, or off-duty time if the employee is to work thereafter on the same workday. No employee who is under the influence may work or report for work within 4 hours after using alcohol. In addition, no employee shall report for work while having any measurable alcohol in his or her system. VI. Consequences of Violations of this Policy Violations of this policy may result in disciplinary action, up to and including termination, and may have legal consequences. Possible discipline includes reprimands, suspensions and dismissals. Sanctions will reflect the particular violation and its severity and will take into account other relevant factors including prior discipline, past violations of this or other City policies and potential danger to the employee, coworkers and the public. The City recognizes that alcoholism and drug addiction may affect employees. The City urges employees to voluntarily refer themselves for treatment. The City reserves the right to refer an employee for drug or alcohol testing, at City expense, where management believes there is a suspicion of improper alcohol or drug use as defined by this policy. The employee has the right to have a second assessment opinion by a qualified professional at his/her own expense, but this right will not delay any required drug or alcohol test. VII. Alcohol and Drug_Testin~ A. In order to carry out the City's commitment to an alcohol and drug-free workplace, the City reserves the right to require that applicants and employees submit to testing in accordance with the provisions of Minn. Stat. §§ 181.950-181.957. This policy represents the notice required under Minnesota Statute and will be provided to all applicants and employees who are requested to undergo testing. B. Types of Testing 1. Pre-employment -The City may require that all finalists for employment, as identified by section II, who have received conditional offers of employment be tested. If the offer of conditional employment is subsequently withdrawn, the City will notify the individual of the reason for the withdrawal. 2. Reasonable Suspicion Testing -The City may require any City employee to be tested when there is a reasonable suspicion that the employee: a. is under the influence of drugs or alcohol; b. has violated the City's policy prohibiting drug and alcohol use; has sustained or caused another employee to sustain personal injury; or d. has caused awork-related accident or was operating or helping to operate machinery, equipment, or vehicles involved in awork-related accident. In order for "reasonable suspicion" to exist, there must be a basis for forming a belief that testing is justified based on specific facts and rational inferences drawn from those facts. The observations must be confirmed by a second management employee. C. Conducting the Testing Consent. All persons to be tested will be required to complete and sign the employee consent form (Sample attached as Appendix A). Substance abuse testing will not be performed unless a signed consent is in the possession of the City. Each form must also be witnessed by a City supervisor. 2. Refusal to Participate. An employee or job finalist has the right to refuse testing. However, a refusal of testing will be treated the same as a positive test and may result in withdrawal of a job offer or, in the case of employees, disciplinary action up to and including termination of employment. See section on "Disciplinary Action In Response to a Positive Test Result" below. Location of Collection. The employee will be directed to the collection site at the Monticello Clinic. The employee will be transported in the case of testing due to reasonable suspicion. Employees who refuse to be transported to a collection site will be considered to have refused the test. 4. The Laboratory. The laboratory, MedTox, selected to perform testing is certified by the National Laboratory Certification Program. Test Results. a. Negative Tests f passed testl. Negative test results on an initial test will be provided in writing to the City within three working days after the test result. An employee or job applicant will receive written notification of the test result within three working days after the City is notified of the result. b. Positive Tests [failed testsl. A confirmatory test will be performed on all samples with a positive test result on an initial test. Positive test results will be provided in writing to the City within three working days of a confirmatory test. An employee or job applicant will be sent written notification of a confirmatory test result within three working days after the City is notified of the result. In the case of a positive test result on a confirmatory test, the tested individual may explain the result to the medical review officer within three working days after notice of the test result. An employee may request a confirmatory retest of the original sample at the individual's own expense. If a confirmatory retest is requested, the individual must notify the City in writing, within five working days after notice of the confirmatory test result, of his or her intention to obtain a retest. Right to Test Result. An employee or job applicant has the right to request and receive from the City a copy of the test result report on any drug or alcohol test. D. Costs. Costs related to alcohol and drug testing will be paid by the City, with the exception of confirmatory retests, which must be paid for by the employee or job applicant requesting the retest. E. Disciplinary Action in Response to a Positive Test Result Interim Disc~linary Action: The City reserves the right to transfer an employee with a positive test to another position at the same rate of pay or to temporarily suspend the employee, without pay, pending the outcome of the confirmatory test (and, if requested, the confirmatory re-test) if the City believes that it is reasonably necessary to do so to protect the health and safety of the employee, co-employees or the public. An employee who is suspended without pay will be reinstated with back pay and no loss of benefits if the confirmatory test or re-test is negative. In the case of job applicants, a positive initial test result must be verified by a confirmatory test before a conditional offer of employment will be withdrawn. 2. First Failed Test -- Discipline: The City reserves the right to take any other disciplinary action, including discharge, which it deems warranted in the event of an employee's first positive confirmatory test result, consistent with State and Federal law. Second Failed Test: The Department Head may recommend discharge of an employee to the City Administrator when an employee tests positive on a confirmatory test and has previously had a positive confirmatory test result. F. Privacy of Test Results Test results and other information acquired as a result of the testing program are private data and will not be disclosed by the City or the test laboratory to another employee or to third party individuals, government agencies, or private organizations without written consent of the employee or applicant being tested, unless otherwise required by law or there is a legitimate need to know. 2. Evidence of a positive test result on a confirmatory test maybe used in an arbitration proceeding pursuant to a collective bargaining agreement, an administrative hearing, or a judicial proceeding, provided the information is relevant to the hearing or proceeding. Such evidence may also be disclosed to any federal agency or other unit of the United States government as required under federal law, regulation, or order. Evidence of a positive test result on a confirmatory test may also be disclosed to a medical review officer, substance abuse treatment facility or provider for the purpose of evaluation or treatment, with the consent of the employee. Upon request, the City will provide an employee with access to information in the employee's file relating to positive test result reports and other information acquired in the testing process as well as conclusions drawn from or actions taken based upon such information. Drug and alcohol testing results will be maintained separate from the employee's personnel file. However, records of disciplinary action related to a positive test will be placed in the employee's personnel file. 4. Employees must, as a condition of employment, abide by the terms of this policy and report any conviction under a criminal drug statute for violations occurring on City premises or while conducting City business. A report of a conviction must be made within five (5) days after the conviction. APPENDIX A ACKNOWLEDGMENT AND INFORMATION FORM TO BE PROVIDED BEFORE REQUESTING TESTING 1. I acknowledge that I have been provided with a written copy of the City of Monticello Drug- Free Workplace policy. 2. I have read this policy and understand its contents. I understand what conduct is prohibited by the policy and the consequences of engaging in prohibited conduct. I understand my rights under the policy, the consequences if I exercise those rights, and that certain events as described in the policy may result in negative personnel decisions including discipline, termination, or the withdrawal of a conditional offer of employment. I hereby voluntarily consent to submit to testing for alcohol or drugs including submitting necessary urine and/or blood samples. I further voluntarily consent that the entity selected by City may conduct testing on the sample provided by me and may disclose to the City test result data. Date: Signature of Individual to be Tested Printed Name of Individual to be Tested Signature of Designated Authority at City (All supervisors are authorized to sign here) ACKNOWLEDGMENT I have read and understand the terms of the City's Drug-Free Workplace Policy. I have been given the opportunity to ask any questions that I had regarding this policy. Employee Name (Please Print) Employee Signature Date Upon completion please return this form to the Human Resource Department. Council Agenda: 7/28/08 SH. Consideration of Making an Appointment to the Position of Economic Development Director. A. REFERENCE AND BACKGROUND: As directed by Council staff conducted additional checking on candidate background and references. Staff and Personnel Committee have reviewed the information and have come to the conclusion that Megan Barnett provides the best fit for the organization. As you recall, Megan was deemed as a great prospect during the interview process and was identified as a "close second" at that time. In the opinion of the Personnel Committee and staff Megan should be moved to the front by virtue of her exceptional references and thorough verification of her capabilities. B. ALTERNATIVE ACTIONS: 1. Motion to direct the City Administrator to offer the position of Economic Development Director to Megan Barnett. 2. Motion to deny authorization to direct the City Administrator to offer the position of Economic Development Director to Megan Barnett C. STAFF RECOMMENDATION: Staff and Personnel Committee recommend alternative 1. Staff is excited about the prospect of adding Megan to the team. We project her to be a hard worker and a great contributor toward our effort to encourage Economic Development in the City of Monticello! D. SUPPORTING DATA: Application materials available to Council members upon request. Council Agenda: 1/28/08 7. Public Hearing-Consideration of a resolution adopting proposed assessment roll for delinquent utility bills and certification of assessment roll to County Auditor. (JO) A. REFERENCE AND BACKGROUND: The City Council is again asked to adopt an assessment roll for utility billing accounts which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on next year's real estate taxes. The delinquent utility accounts that are included with the agenda are accounts that are at least 60 days past due and include all new delinquents from the last time we certified them. In addition to the delinquent amount, the Council also previously approved the establishment of an administrative fee of $50 per account that is added to each delinquent assessment. The amounts shown on the enclosed delinquent utilities list include the additional $50 administration fee for the preparation of the assessment roll. It is recommended that the delinquent accounts be put on an assessment roll for certification at an interest rate of 6% as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, they can be paid without the additional interest. After 30 days, payments will be charged interest. A.1 Budget Impact: Certification of delinquent utility accounts for first quarter 2008 is collection of revenue the City should have received in 2008 but because of the non-payment will not be collected until 2009 when it will appear on the tax rolls. A.2 Staff Workload -The process for collecting delinquent utility amounts is time consuming with preparing and mailing delinquent notices; preparing and mailing notices of the public hearing on the assessment of delinquent notices as well as other clerical work in preparing the amounts for certification. The most time consuming step of the process is verifying the delinquent account data against Wright County property tax records. The $50 fee that is added to the delinquent accounts helps defray the cost of staff time and publication expenses. B. ALTERNATIVE ACTIONS: 1. Adopt the assessment roll for the delinquent charges as presented. 2. Based on public hearing input, adjust the assessment roll as required. C. STAFF RECOMMENDATION: It is staff recommendation that the Council adopt the assessment roll as presented. All of the accounts are at least 60 days past due and have been given proper notice of this assessment hearing and ample opportunity to pay the accounts in full. All utility accounts were notified that there would be an additional $50 administrative fee attached to each outstanding balance if the account was not paid by noon on July 8, 2008. D. SUPPORTING DATA: Copy of resolution adopting assessment roll Complete listing of delinquent accounts to be certified. Council Agenda: 1/28/08 CITY OF MONTICELLO RESOLUTION N0.2008-59 RESOLUTION ADOPTING ASSESSMENT ROLL FIRST QUARTER 2008 WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for delinquent utility account charges, NOW, THEREFORE, BE IT RESOL VED BY THE CITY COUNCIL OF MONTICELLO, MINNESOTA: Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessments against the parcels named herein, and each tract of land therein included is hereby found to be benefitted by the assessment levied against it. 2. Such assessment shall be payable in one (1) annual installment payable on or before the first Monday in January 2008 and shall bear interest at the rate of 6 percent per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2009. 3. The owner of the property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property with interest accrued to the date of payment, to the City Treasurer, except that n interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the proper tax list of the county, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Monticello City Council this 28`~ day of July, 2008. 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N N 'i N 'i N N N N N .. .. N N H N N N .. .-I .-I .. N .. N N N N N .~, .. .i fi N N .. N N iF O O C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O rl O O O O O O O o 0 0 N 0 0 0 N O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o F .i U N1 .i m w ~ rl In N In a~.i N ti ti o c In o 00 0000000000 000000 U 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m a oti.i.i arc aln ul~moly rlacln rl ul lnm~l~~NOOtoromrrNOmlo to m.iNmna O r r r r r r r r r r r m O N N N N N M O O .-1 N M M M O O M p r N N t+1 M Ill m m W O O O O O O O O O O O N .-1 .i O O N Ill Ill 1f1 N Ill l11 m m m m m m 0 0 0 0 0 0 0 0 \ O O O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 O N N N N N N N N N N N N N N .-1 .-1 o N N N N N N N N N N N N M rvl NI M l+1 C C C C d~ C C C C r N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O N n r m N pF .F7 R Q zF wo Council Agenda: 7/28/08 8. Consideration of Accepting Bids and Awarding Contract for the Fiber Loop project, City Proiect No. 2006-32C. (B.W.) A. REFERENCE AND BACKGROUND: The City Council is being asked to consider awarding the contract for the Fiber Loop which includes construction of 11.19 miles of fiber optics that is an important subset of the larger FiberNet Monticello project. The Fiber Loop connects important commercial, industrial and civic facilities thereby allowing commercial and industrial users to have access to high-speed fiber optics thus contributing toward the achievement of economic development goals, while connecting the City Hall, Community Center and Public Works facilities to improve communication/data speeds and reduce Internet access expenses. The loop also passes by the Otter Creek Business Park thus providing another important asset in marketing this property. The service provided at this time would include high speed data only and no TV or telephone. Council should also be aware that this project includes the ability to connect to up to 200 of the 400 businesses or so that it will pass, which includes all of the downtown area and most of the Industrial Park. Bids for this project were received and opened on Tuesday, July 22, 2008 and are good for a period of 45 days. The City received a total of 6 bids, which were competitive. MP Nexlevel of Maple Lake, Minnesota submitted the low bid at $1,071,967 which is almost $80,000 less than the Engineer's Estimate of $1,150,000. Spectrum Engineering Corporation, the design engineer, has reviewed all bids for math errors and omissions. Attached as supporting data is their Letter of Recommendation and a copy of the Bid Respondents Summary. Construction is anticipated to commence on August 4, 2008, with completion on or before November 29, 2008. However, final completion will depend on the head-end building construction schedule which is proposed to be completed by December 12, 2008. As previously mentioned, there are no legal implications that staff is aware of relating to this project since Revenue Bonds will not be utilized. A.1 Budget Impact: Funds for constructing this project will be drawn from existing reserves. Revenues from the system will be sufficient to replenish the reserves over time, or when the full FiberNet project moves forward and Revenue Bond funds are released from escrow, these funds can be used to replenish the reserves. One full-time Construction Inspector will be required for this project. Since this is a specialized type of construction that our Construction Inspectors have little or no experience with, it is recommended that one of the inspectors previously identified for the FiberNet project be hired to inspect this project. Based on a billable rate of $66 per hour, and assuming 50 hour work weeks from August 4th to November 29th, it is estimated that this position will result in an additional cost of $52,800. Council Agenda: 7/28/08 Operational expenses for this service will be minimal, and will require one full-time technician and one full-time service/sales representative, both of whom could work out of the head-end building. These positions will need to be better identified and filled prior to the fiber loop being lit for service. A.2 Staff Impact: This project will require the services of one of the City's Construction Inspector's on a quarter to half-time basis. B. ALTERNATIVE ACTIONS: Motion to accept the bids and award the contract to MP Nexlevel in the amount of $1,071,967.00. 2. Motion to not award the contract at this time. C. STAFF RECOMMENDATION: It is the recommendation of Staff and the Fiber Optics Committee to move forward on accomplishing the City's goals of enhancing economic development and providing choice through development of this Fiber Loop. The project is projected to be financially self-supporting and can be integrated into the FiberNet Monticello system both financially and physically once it is constructed. The presence of this system will assure choice and thus result in optimum ability to provide critical data transfer service to business at a reasonable cost. Such a setting in important to achieving important economic development goals which include: • Local business expansion • Relocation of business to Monticello • Job creation. It will also provide interconnectivityhetween existing governmental facilities thus enhancing performance and reducing long term cost to connect to the Internet and provide Otter Creek Business park with a very important asset. D. SUPPORTING DATA: Letter of Recommendation Bid Respondents Summary ~,~~~~ ElVl;tNEfRING GORf'ORATION July 24, 2008 Bruce Westby, City Engineer City of Monticello 505 Walnut Suite #1 Monticello, Minnesota 55362 RE: Recommendation to select Outside Plant (OSP) Contractor Dear Mr. Westby, A total of six Unit Price Bids and two No Bids were received on July 22nd, 2008. These Bids were based on the total number of Units the Engineer conservatively estimates are needed to complete the outside plant portion of the project. The Bidders included: Bidder Price • Grady Crawford Construction Company, Inc., Baton Rouge, LA $1,439,766.00 • MasTec -Twin Cities, Hugo, MN $1,491,771.37 • Michael's Corporation, Brownsville, Wisconsin $1,250,337.62 • MP Nexlevel, LLC., Maple Lake, MN $1,071,967.00 • Spalj Construction, Deerwood, MN $1,619,415.52 • TelCom Construction $1,263,344.92 • Atlantic Engineering of Braselton, Georgia No Bid • North Central Service, Inc., Clearbrook, MN No Bid All Bids were carefully reviewed for conformance with the Bid Documents. To insure that due diligence was performed, the Engineer requested additional information and clarification from some of the Bidders. Based on the submitted documents, and follow-up information, Spectrum recommends the City of Monticello issue "Intent to Award subject to successful financing and contract negotiation" to MP Nexlevel, LLC., Maple Lake, MN in the Not-to-Exceed amount of ONE MILLION, SEVENTY-ONE THOUSAND, NINE HUNDRED SD~TY- SEVEN AND 00/100THS DOLLARS ($1,071,967.00) US. Respectfully submitted, Mike Wannemacher Telecom Manager Spectrum Engineering Corp. dmw 5524 North County Line Road, Aubum, Indiana 46706 • 260-627-8888 • 260-627-8102 Fax • Email address: dmwannemacher@spectrumeng.com I ' It >,f,:~i ,ilu ACV "~'~~~ F IRL',l; I ~(~~' (_l~l~l c ~I Ai~;~~ I I~'f:! ; ~ ~ i't?~.'~~i;i ,h,cum~~ i.nJ-.u~~r S}?I' h .?.*nm.-,~6,ui~,ri_f I~u~_1 r.,,i. 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O~ O~ O~ O~ O~ O~ _ S° O~ r ~ N ~ ~ N r M r Z N W ~ Z O O + A7 O A + ~y,/ O t0 ~ ~_ f0 W V ~O V 1'17 N A. M ("):~ V7 ~ V V + O~1 W ~ N N O N V O v ° ~ ~ ~ ~ m ~s o 0 T 0 n w N rn ~: N Z Z Z Z Z 3 Y j K Z Z Z Z Z Z A g, O a D a a 6 D a n m aT 0 n o ~~ Z T T T to ~ T T O f,D Cl ma` °m m m _ ~ G m c o O 4.~ vo o ~O ~:t0 0 3 O »'~ 8 ?' N g ° aN v y Z ~ v. N ~> j ~. °mm~ v H m 3 a - 0 ~~- g'~ Z ~ e ~~ q Q B v, 3 a v ~ v ~ ~ m °° ° 0 A ~: sm ~a a ppn a ga a co, s - . y ao o W a o ~,gO-=o= 0 o n o T T W z ~ _ = = W ~ ~ O ~ ~ _ N ~ v to ~ ~ y - ~ y ~ ~N v ~ Q 0 n 3 da v a ~ o ~a ~. ~a v a ~ o 3~ a< e ~ m , = ~ y W o ~ d ~ a m a i m ~ p. ~ a . ci n a m m W U1 ~ N ~ ~ ~ ~ ~ n ~ O O O A 0 N O O ~_ W m O O 0 n "~ ~m0 ~ ~ m ~' ~O 3Z z -~ n m r r O L m n Council Agenda: 7/28/08 9. Consideration of accepting Feasibility Report and call for Public Hearing for street improvements to Kevin Longley Drive and Jerry Liefert Drive, City Project No. 2008-1OC. (BW) A. REFERENCE AND BACKGROUND: On May 27, 2008 the City Council authorized staff to prepare the attached Feasibility Report for City Project No. 2008-1OC. This project includes 6,190 square yards of 1'/ inch edge milling and placing an average of 1 % inches of bituminous overlay on Kevin Longley Drive and Jerry Liefert Drive in the northwest corner of the City. Additionally, 8501inear feet of curb and gutter will be replaced, and 67 cracks in existing curb and gutter panels will be repaired. Council also directed staff to evaluate the condition of the pavement on Hawthorne Place North, located in the southeast corner of the City, including looking into some localized groundwater issues. This is in progress, but since no assessments will be proposed for that work it will be brought to the Council on August 11, 2208. At the time this mill and overlay project is bid the work on Hawthorne Place North can be added to this project so that we can keep unit costs as low as possible due to economies of scale. Kevin Longley Drive and Jerry Liefert Drive were both originally constructed in 1984 and have been seal coated twice since, once in 1987 and again in 1995. Milling and overlaying both these streets this year will allow the City to get at least another 15 years of useful life out of the pavement sections, assuming that regular maintenance activities (patching, crack sealing, seal coating, etc.) are performed on the streets during that time. However, should regular maintenance activities not be performed these streets will deteriorate more rapidly. A.1 Budget Impact: The estimated cost to construct the proposed improvements is $270,675. Staff is recommending that 50-percent of the project be funded through special assessments to benefitting property owners, which is consistent with past practice, most recently on Kenneth Lane during the 2007 Core Street project. The Street Department also budgeted $125,000 for this project in 2008, any remaining funds that are needed can be taken from the Street Reconstruction funds. In order to keep costs at a minimum City staff has prepared the attached Feasibility Report, and will look at combining this project with the reconstruction of Hawthorne Place North should Council authorize that project. A.2 Staff Impact: This project will require the services of one City construction inspector on apart-time basis. Council Agenda: 7/28/08 B. ALTERNATIVE ACTIONS: 1. Motion to accept Feasibility Report and call for Public Hearing for City Project No. 2008-1OC on August 11, 2008. 2. Motion to deny acceptance of Feasibility Report for City Project No. 2008-1 OC. C. STAFF RECOMMENDATION: City staff recommends approving Alternative Action No. 1. D. SUPPORTING DATA: Feasibility Report for City Project No. 2008-1OC. FEASIBILITY REPORT MILL AND OVERLAY OF KEVIN LONGLEY DRIVE (PRAIRIE ROAD TO JERRY LIEFERT DRIVE) & JERRY LIEFERT DRIVE (KEVIN LONGLEY DRIVE TO CSAH 75) CITY PROJECT N0.2008-1OC MONTICELLO, MINNESOTA July 24, 2008 Prepared By: Bruce West6y City Engineer Feasibility Report Kevin Longiey Drive/Jerry Liefert Drive Street Facility Improvements City of ,Yfonticello Project N'o. 2008-I DC July 28, 2008 Honorable Mayor and City Cauncil City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Feasibility Report, City of Monticello Project No. 2008-1OC Mill and Overlay of Kevin Longley Drive & Jerry Liefert Drive Dear Mayor and City Council Members: Transmitted herewith is a Feasibility Report for a mill and overlay project within City right-of- way along Kevin Longley Drive from Jerry Liefert Drive to Prairie Road, and along Jerry Liefert Drive from Kevin Longley Drive to CSAH 75. This project is being recommended in order to maintain the pavement in as cost-effective a manner as possible. I would be happy to discuss this report with you at your convenience. Please call me at 763-271- 3236 should you have any questions. Sincerely, City of Monticello /~.~ ~~, Bruce Westby, P.E. City Engineer c: Jeff O'Neill, City Administrator John Simola, Public Works Director Tom Moores, Street Superintendent Enclosure brw CERTIFICATION I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. C...,~ Bruce R. VGestby, P.E. Date: July 28, 2008 Lic. No. 40116 Feasibility Report Kevin Longley Drive/Jerry Liefert Drive Street Facility /mprovements City of:Y/onticello Project No. 2008-IOC TABLE OF CONTENTS TITLE SHEET LETTER OF TRANSMITTAL CERTIFICATION SHEET TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ................................................................................................ 3 2. INTRODUCTION .............................................................................................................. 4 2.1 Authorization .............................................................................................................. 4 2.2 Scope ........................................................................................................................... 4 2.3 PCI Ratings .................................................................................... .4 3. GENERAL BACKGROUND ............................................................................................ 5 3.1 Project Location .......................................................................................................... 5 3.2 Existing Conditions ..................................................................................................... 5 4. PROPOSED IMPROVEMENTS ..................................................................................... 6 4.1 Street Facilities ............................................................................................................ 6 4.2 Drainage ...................................................................................................................... 6 4.3 Utilities ........................................................................................................................ 6 4.4 Permits/Approvals ....................................... ................................................................ 6 4.5 Right-of--Way/Easements ............................................................................................ 6 5. FINANCING ....................................................................................................................... 7 5.1 Opinion of Cost ........................................................................................................... 7 5.2 Funding ....................................................................................................................... 7 6. PROJECT SCHEDULE .................................................................................................... 8 7. FEASIBILITY AND RECOMMENDATION ................................................................. 9 Appendix A Project Location Map Appendix B Opinion of Probable Costs Feasibility Report Kevin Long[ey Drive/Jerry Liefen Drive Street Facility Improvements Ciry of Monticello Project ~Y'o. 1008-I DC 1. EXECUTIVE SUMMARY City Project No. 2008-1 OC provides for the construction of pavement improvements within the City's right-of--way along Kevin Longley Drive from Prairie Road to Jerry Liefert Drive, and along Jerry Liefert Drive from Kevin Longley Drive to CSAH 75. A project location map is included in Appendix A. The City Council authorized preparation of this report on May 27, 2008. This improvement project includes milling 1'/Z inches of bituminous pavement for a width of 8- feet along the outside edge of each street. A bituminous overlay with an average depth of 1 inches will then be placed over the entire surface of Kevin Longley Drive from Prairie Road to Jerry Liefert Drive (1,620 feet), and over Jerry Liefert Drive from Kevin Longley Drive to CSAH 75 (1,862 feet). Also, a substantial amount of deteriorated curb and gutter will be patched or replaced. Sod will then be installed behind all curb that is replaced. The engineer's opinion of probable costs for the proposed improvements, including 10% for contingency costs and 20% for indirect costs, is included in Appendix B. These improvements will be financed using a combination of special assessments to benefitting property owners for fifty-percent of the project costs, $125,000 that was budgeted for this project in 2008 by the Street Department, and any remaining funds will come from the Street Reconstruction fund. The construction of all improvements proposed in this Feasibility Report will be completed by the end of the 2008 construction season. This project is feasible, necessary, and cost-effective from an engineering standpoint, and can be constructed as proposed herein. Feasibility Report Kevin Longley Drivel Jerry Liefert Drive Street Facility Improvements City of:bfonticello Project No. 1008-IOC Page 3 2. INTRODUCTION 2.1 Authorization This feasibility report was authorized by the City Council on May 27, 2008. This improvement project has been designated as City Project No. 2008-1OC. 2.2 Scope This report addresses pavement management improvements within the City's right-of--way along Kevin Longley Drive from Prairie Road to Jerry Liefert Drive, and along Jerry Liefert Drive from Kevin Longley Drive to CSAH 75. A project location map is included in Appendix A. The proposed project includes the construction of 8501inear feet of concrete curb and gutter, 1,440 tons of bituminous pavement mixture, 6,190 square yards of 1 `/ inch bituminous edge mill, and other miscellaneous quantities. All required pavement striping will be completed by Public Works crews to save costs. The engineer's opinion of probable cost for the associated improvements is included in Appendix B. 2.3 Pavement Condition Index (PCI) Ratings PCI ratings are determined using a collaborative effort between City and WSB staff. City staff first performs an initial on-site pavement assessment, then WSB runs the numbers generated during the pavement assessment through a computer analysis to determine the actual PCI rating. A PCI rating between 0 and 40 typically indicates that the road is in poor condition and will require total reconstruction, aPCI rating between 40 and 80 typically indicates that a mill and overlay is required, and a PCI rating between 60 and 100 indicates that a sealcoat maybe considered. It should be noted that there is some overlap between the sealcoat and. mill and overlay ranges. When this occurs, life-cycle costs are determined for each type of treatment and the treatment that provides the greatest benefit-cost ratio is typically chosen. The PCI ratings for the proposed project are as follows: Roadway Segment PCI Jerry Liefert Dr, from Kevin Longley (W) to Kevin Longley (E) 74 Jerry Liefert Dr, from Kevin Longley (E) to CSAH 75 68 Kevin Longley, from Prairie Rd to Jerry Liefert Dr (W) 51 Kevin Longley, from Jerry Liefert (W) to Jerry Liefert (E) 68 Feasibility Report Kevin Longley Drive/Jerry Liefert Drive Street Facility Improvements Ciry of Moruicello Project No. 2008-1OC Page 4 GENERAL BACKGROUND 3.1 Project Location The proposed project is located within the City's right-of--way along Kevin Longley Drive from Prairie Road to Jerry Liefert Drive, and along Jerry Liefert Drive from Kevin Longley Drive to CSAH 75. A project location map is included in Appendix A. 3.2 Existing Conditions Kevin Longley Drive -Prairie Road to Jerry Liefert Drive This road was originally constructed in 1984 with 8 inches of class 5 aggregate base, 1 %2 inches of bituminous base course and 1'/z inches of wear course. In 1987, a seal coat was placed and crack seal operations were performed in 1995. There are four sanitary manholes and three valve boxes in the roadway. Jerry Liefert Drive -Kevin Longley Drive to CSAH 75 This road was originally constructed in 1984 with 8 inches of class 5 aggregate base, 1 %i inches of bituminous base course and 1 %2 inches of wear course. In 1987 a seal coat was placed and crack seal operations were performed in 1995. There are seven sanitary manholes, two valve boxes and four storm manholes in the roadway. Much of the concrete curb and gutter is in poor shape, and there is considerable deterioration at the joints. Feasibility Report Kevin Longley Drive/Jerry Liefert Drive Street Facility /mprovements City of~Nonticello Project No. 2008-1OC Page 5 4. PROPOSED IMPROVEMENTS 4.1 Street Facilities Kevin Lon~ley Drive -Prairie Road to Jerr~Liefert Drive A few areas of alligator cracking exist which will first be fixed using full-depth patching. The outside edge of both sides of the roadway will then be milled 1'/ inches for a width of 8 feet. The entire road will then receive approximately 1'h inches of bituminous overlay as needed to achieve a 2 % cross slope to provide adequate drainage. Casting adjustments will be required for four sanitary manholes and three valve boxes in the roadway. A good deal of the concrete curb and gutter is in poor shape and will either require replacement or crack repair. The existing concrete valley gutters east of the intersection with Prairie Road will also be replaced. Jerry Liefert Drive -Kevin Longley Drive to CSAH 75 A few areas of alligator cracking exist which will first be fixed using full-depth patching. The outside edge of both sides of the roadway will then be milled 1'/ inches for a width of 8 feet. The entire road will then receive approximately 1'/z inches of bituminous overlay as needed to achieve a 2 % cross slope to provide adequate drainage. Casting adjustments will be required for seven sanitary manholes, two valve boxes and four storm manholes in the roadway. A good deal of the concrete curb and gutter is in poor shape and will either require replacement or crack repair. Some striping will also be required. 4.2 Drainage Drainage improvements for this project will consist of the construction of curb and gutter around the two radii at the west end of Kevin Longley Drive where it intersects with Prairie Road. This curb and gutter will collect stormwater runoff from Prairie Road and route it to the drainage ditch north of Kevin Longley Drive and east of Prairie Road. 4.3 Utilities No utilities will be impacted by this project with the exception of the need to adjust several sanitary manhole and storm catch basin castings, as well as several water valve boxes. 4.4 Permits/Approvals Right-of--way permits will be required from both the City and Wright County prior to the start of construction. 4.5 Right-of-Way/Easements No right-of--way and/or easements will need to be acquired to complete the improvements as proposed. Feasibility Report Kevin Longley Drivel Jerry Liefert Drive Street Facility improvements City of Monticello Project !Vo. 2008-1OC Page 6 5. FINANCING 5.1 Opinion of Cost A detailed opinion of cost for the proposed improvements is located in Appendix B of this report. These opinions of cost incorporate 2008 construction costs and include 10% contingency costs and 20% indirect costs for administrative, engineering and legal fees. The opinion of probable costs for constructing the proposed improvements along Kevin Longley Drive and Jerry Liefert Drive is $270,675. 5.2 Funding The improvements outlined in this report are proposed to be financed by assessing all benefitting property owners 50% of the project costs, with the City picking up the remaining 50% of the costs using $125,000 that was budgeted for this project in the Street Department funds, with the remaining funds coming from the 2008 Street Reconstruction funds. A special assessment rate of 50% is consistent with the assessments levied against property owners along Kenneth Lane, which received a mill and overlay during the 2007 Core Street project. Feasibility Report Kevin Longley Drive/Jerry Liefert Drive Street Facility Improvements City of:Yfonticello Project No. 1008-IOC Page 7 6. PROJECT SCHEDULE If the City Council approves the improvement project proposed in this Feasibility Report, the anticipated project schedule is as follows: Approve Feasibility ReportJCall for Public Hearing ........................................July 28, 2008 Hold Public Hearing/ Order Plans & Specifications ............................... .....August 11, 2008 Approve Plans and Specifications/Order Ad for Bid ............................... .....August 25, 2008 Receive Bids ............................................................................. September 18, 2008 Award Contract .......................................................................... .September 22, 2008 Begin Construction ...................................................................... September 29, 2008 Final Completion ....................................................................... .November 14, 2008 Assessment Hearing .................................................................... .November 24, 2008 Feasibility Report Kevin Longley DriveJJerry Liefert Drive Street Facility Improvements City of ~Nonticel[o Project No. 2008-IOC Page S 7. FEASIBILITY AND RECOMMENDATION It is the recommendation of the City Engineer that City Project No. 2008-1OC as outlined in this Feasibility Report is feasible, necessary, and cost-effective from an engineering standpoint. Feasibility Report Kevin Long[ey Drive/Jerry Liefert Drive Street Facility Ineprovemenrs City of rYlontice[Io Project No. 2008-/OC Page 9 APPENDIX A Project Location Map Feasibility Report Kevin Longley Drivel Jerry Liefert Drive Street Facility /~nprovenrents City of;Y(onticello Project :V"o. 2008-1OC O a i c,r ,? 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Consideration of Courier Vehicle for the DMV. (AJ & TK) A. REFERENCE AND BACKGROUND: Currently the DMV provides courier service to the various auto dealers in the area for their licensing needs. In addition they make trips to the bank, post office and city hall. They currently use their personal vehicles. This creates issues with wear and tear on their personal vehicles and insurance issues. Also since one employee had a serious accident last year while making the dealer trips, staff is a little concerned about using their vehicles for these trips. While the City reimburses the employees for mileage for these trips the IRS allowable mileage reimbursement rate doesn't always cover the true cost of these trips on personal vehicles. Last year and through the first half of this year the DMV employees drove 2,198.50 miles and have been reimbursed $1,028.34 for these trips. If a vehicle were purchase, this vehicle could be used by other City staff from time to time to carry out other City business, such as, the liquor store could use it for trips to the Metro area to pick up products that can not be delivered to the store or used by other staff to attend meetings. The vehicle should have the City logo and DMV information on it, which would advertise this City operation. The vehicle could be used to expand the courier service to dealers outside of Monticello, thus increasing DMV revenues. Attached is a summary from the DMV manager outlining the trips and the reasons why a vehicle would be beneficial for the City. In addition it provides quotes she received on various vehicles from various dealers. The Ford Focus would meet the needs of the DMV and would provide the City with the best gas mileage of the vehicles quoted. A1. Budget Impact: The 2008 DMV budget included $12,000 for the possible purchase of a vehicle. With funds above the $12,000 coming from DMV fund reserves. It would also eliminate the approximately $800 a year for mileage reimbursement the City currently is paying staff for these trips. A2. Staff Workload Impact: There would be no impact on staff workload with this purchase. B. ALTERNATIVE ACTIONS Approve the purchase of the 2008 Ford Focus from Denny Hecket's Monticello Ford-Dodge at a cost of $12,517.00 plus sales tax and license. Council Agenda: 7/28/08 2. Approve the purchase of one of the other vehicles and/or from one of the other dealers. 3. Do not approve the purchase of a vehicle. C. STAFF RECOMMENDATION: The City staff supports Alternative 1. D. SUPPORTING DATA: Ann Johnson's memo on the courier vehicle with attachments. Deputy Registrar Courier Vehicle Daily Courier Runs July 18, 2008 Deputy Registrar Operations were discussed during a special City Council meeting Thursday, December 21, 2006. Providing courier service, among other things, was discussed. It was decided that this should begin as soon as possible. We began courier service on January 2007. One of the City Council members questioned "at what point would the Deputy Registrar need a city vehicle?" We have reached that point. The Deputy Registrar's courier service is M-F; six or more stops a day. We do this with our personal vehicles. Our runs include: 1) West Metro Dealership 2) DH Ford/Dodge Dealership 3) Hoglund Bus Dealership 4) First MN Bank 5) City Hall 6) Post Office 7) Extra small town dealers as needed 8) Extra bank, city hall or post office runs as needed Courier days and times: Every courier run is done Monday thru Friday. We combine as many runs as possible. 1) The dealer and city hall run is between 9:15 am and 10:00 am. We bring the dealers their completed work and receive a check. A dealer may need us to come later, earlier or a second time, for various reasons. If they request this of us, we accommodate the request. 2) The bank run is done after the dealer run, because we need the dealer checks to complete the daily deposit. This is done between 1:00 pm and 2:00 pm. At this time, we receive the State Treasurer's deposit slip. 3) We need to include the State Treasurer's deposit slip in our report, so the post office and second city hall run is done after the bank around 4:00 pm. a) The daily report must be hand delivered to a postal carrier due to its size. I tried to eliminate this run by asking Monticello's Post Master to have the carrier to come into our office for pickup and delivery. He stated "a contract and a postage meter is necessary for this service." We do not qualify for a contract and do not have a postage meter. Deputy Registrar mileage for 2007 to June 2008: Ann Johnson: 1,647.50 Diane Jacobson: 302 Rebecca Hagedon: 191 Sue Lensing: 13 Amanda Washkuhn: 45 Total: 2,198.50 Information to Consider This city vehicle would be available to all departments. Courier service to the dealers is a service the City Administration, City Council, and the Deputy Registrar feel is necessary to be competitive in offering the best customer service possible. The Deputy Registrar could go outside the city and recruit other dealership business. Using our personal vehicles puts limits on this. There will be garage space available for this vehicle when the new facilities space is completed. It would be kept in the Deputy Registrar parking lot until then. We would also have the city's logo on the vehicle; this would be a rolling billboard advertising the Deputy Registrar's office. 2 Personal Vehicle vs. City Vehicle: When using a personal vehicle for business use these are some of the issues that need to be addressed. It is true the city reimburses for mileage, using our personal vehicles on a regular basis costs us, as employees, more than what the mileage allowance gives back. 1) Insurance: Attached is a copy of an email received from my insurance agent regarding liability and coverage. Using our personal vehicles on a regular Monday thru Friday basis creates insurance questions and issues. a. Most personal auto policies do not cover business use. Special insurance coverage would have to be purchased for these courier runs to cover our vehicles. 2) Wear and Tear: Attached is a copy of an email I received from a CEO of several American Tire and Auto shops in the metro area. This explains some hardships on a vehicle during city driving vs. highway driving. a. There are also more frequent changes to oil, tires, brakes, spark plugs, filters etc. 3) Leased Vehicles: One of the Deputy Registrar's employees has a leased vehicle. a. The lease contract allows 1,000 miles a month. b. An additional $.25 per mile is charged for every mile over. c. If the vehicle gets any dents or dings during a courier run, the leasing company will put a claim against her insurance company. We are back to the insurance liability issue. *On January 22, 2008, during the courier run, an employee had a serious accident with her vehicle. This accident caused hardships on her family for several months. Her family would not have encountered these hardships if a city vehicle had been available. Making an employee vehicle is available for courier use can be difficult. *One employee's vehicle has developed an electrical problem that affects the starter. At one point, she was stranded at a dealership. 3 *One employee's vehicle is shared with a family member. *One employee's vehicle is in need of repair. Professional Courier Services: I have checked with the state, regarding the possibility of using a professional courier service. The state strongly advises against using a courier service. We are legally responsible for the license plates and registration stickers from the time they are delivered to us, to the time they are delivered to the dealership. This liability would include replacement cost of the missing license plates and registration tabs, legal liability to the dealership and customers whose plates and registration are stolen. Due to this great legal liability, using a courier service is not a viable option. State of Minnesota Materials Management Purchase Program: Denny Hecker's Monticello Ford-Dodge is a local dealership involved with this program. According to Lonni, in government sales. The 2008 sign up period has ended, however they have two vehicles left. Documents sent 2008 Ford Focus $12,517 2008 Ford Escape $17,057 If we act quickly, we can purchase one of these. Otherwise we will have to wait for the 2009 contract to begin and the prices will go up. DH Ford- Dodge may not be participating in the state program for 2009. Without the State Purchase Program: I contacted local and non-local dealerships and asked for quotes regarding slightly used vehicles apart from the state's program. Dealershiu Vehicle Miles Cost Verbal quotes: Lloyd -General Mngr -with the remainder of the factory warranty Monticello West Metro 2007 Pontiac G6 32,000 $12,000 2007 Pontiac GS 29,000 $12,000 4 Caleb -salesman working with Lonni -government sales - 3 year balance of 100,000 (which ever is first) warranty on power train. Monticello DH Ford 2008 Ford Focus 8,000 $14,600 2007 Ford Focus 48,800 $13,300 2007 Ford Escape 52,364 $12,000 Cameron -salesman referred by Mark -Used Car Mngr -remainder of 5 year 100,000 mile warranty = 13,000 mile bumper to bumper, 80,000 on the power train Monticello Goulds 2007 Chevy Cobalt 27,000 $12,487 Document and Verbal Danny -Used Car Mngr -remainder of 5 year, 100,000 mile warranty with $100.00 deductible. Elk River Ford/Dodge 2007 Ford Focus 40,610 $10,500 2007 Ford Focus 28,069 $12,500 The Deputy Registrar has $12,000 in the 2008 budget for a courier service vehicle. The needs of the Deputy Registrar would be filled with either a Focus from one of the dealerships or the 2007 Escape from Monti. DH Ford/Dodge. Attachments: Insurance agent statement CEO of several metro American Goodyear Tire & Auto Shops statement State Liaison statement regarding courier services Invoices on 2008 Focus and Escape from DH Ford-Dodge Estimate on 2007 Focuses from Elk River Ford-Dodge-Jeep Ann Johnson Deputy Registrar Manager ~~~~ Anr1 Jq~tason. _ From: Burton Insurance Agency, Inc. [burtonin@frontiernet.net] Sent: Friday, June 20, 2008 5,26 PM To: Ann Johnson Cc: dan1962@frontiernet.net Subject: Re: City vs highway driving wear and tear RE: Employees Using Personal Vehicles On Company Business Dear Ann: This is in response to your email to me today. I can only provide you with a response as to how rates are determined for a personal automobile policy and potential coverage issues for both an employee & employer when an employee uses their personal auto on company business. I have forwarded your email to the Chief Financial Officer of American Tire and Auto Company which is a chain of six Goodyear stores in the Minneapolis/St. Paul area. He would be better versed in responding to your questions regarding the wear and tear on a vehicle-City vs. Highway driving. When determining the rates for individuals on a personal auto policy the following is taken into consideration. 1.. The age of driver. 2.. Location vehicle is being garaged. 3.. Use of vehicle.how far is the vehicle being driven to or from work one way. 4.. The type of vehicle being driven. 5.. The driving record of the driver. 6.. The annual miles being driven. 7.. The insurance score of the individual. A personal auto policy does not take into consideration the additional miles an employee might be driving their vehicle while on company business. To the extent that most auto insurance carriers will exclude coverage under the personal auto policy for business use. Employers are vicariously liable for the acts of their employees. In order for an employer to be properly covered for an employee driving their personal auto on company business, they must carry Non-Owned Auto Coverage under their own insurance policy. Non-Owned Auto Coverage provides the employer with liability coverage in the event that an employee is in an auto accident while driving their vehicle on company business. This coverage will not pay to repair the employee's vehicle but covers bodily injury and property damage that the employer may be held nSU~r~n ~ ~J~ ~' vicariously liable for in the event of an at fault automobile accident. The employer would need to carry Non-Owned Physical Damage Coverage to pay for repairs to an employee's vehicle should it be damaged while driving on company business. 1 would caution any person who is using their personal vehicle on company business to contact their own insurance carrier to find out if they are covered when running errands for an employer. In most cases, coverage will be excluded. I hope answers at least part of your questions. Please let me know if I can be of further assistance. Sincerely, Kitty-Jo Burton, CPCU, AIS President Burton Insurance Agency, Inc. 210 Eldorado Dr., Jordan MN 55352 Phone: (952) 492-2262 Fax: (952) 492-3074 burtoninCa frontiernet.net NOTICE: This message (including any attachments) is intended for a specific individual and may contain information that is either confidential or legally protected. If you believe that it has been sent to you in error, please reply to the sender that you have received the message in error, then delete it. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Thank you. ---- - Original Message ----- From: "Ann Johnson" Ann.JohnsonCa~cimonticello:mn.us> To: <burtonin(a~frontiernet.net> Sent: Friday, June 20, 2008 3:56 PM Subject: City vs highway driving wear and tear Hello As my insurance agent, I have a question for you that you may be able to answer. When insuring a vehicle do you consider the area an individual will be driving when you determine their rates? Does the insurance world differentiate between city and highway? If so, do you have information stating what the differences are and what, if any, differences there are regarding the wear and tear of a vehicle being driven in the city vs highway? Thank You Ann Johnson Deputy Registrar Manager Monticello #002 763-271-3241 ~4nn Johnson r _ .. ,. From: Dan Burton [dan1962@frontiernet.net] ~ - Sent: Sunday, June 22, 2008 5:27 PM To: Ann Johnson Subject: Fw: City vs highway driving wear and tear Ann: City driving is notoriously much harder on engines verses highway driving. Stop and go driving, and idling at stoplights create carbon deposits on the engine valves, pistons, and in the combustion chamber. This is harmful to your engines longevity and will decrease your miles per gallon. Engines are designed to be run between 1200 and 1700 r.p.m.s depending on what vehicle you drive. There is a reason why your mileage is less when driving in the city, your car is not operating at its most efficient level. During winter, short trips along with stop and go driving are the absolute worst on your vehicles engine. Because your engine does not completely warm up the water vapor in the engine is not expelled and can create rust on your engines vital internal parts over time. If you have any questions I can be reached at 612-532-3021. Dan Burton CEO-American Tire and Auto NOTICE: This message (including any attachments) is intended for a specific individual and may contain information that is either confidential or legally protected. If you believe that it has been sent to you in error, please reply to the sender that you have received the message in error, then delete it. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Thank you. ---- - Original Message ---- From: "BiirtQn IOS:urance Agency, Iric," <burtoninCDfrontiernet.net> To: <dan1962(p~frontiernet.net> Sent: Saturday, June 21, 2008 9:28 PM Subject: Fw: City vs highway driving wear and tear Dan- Could you please review and respond to Ann regarding city vs. highway driving and the effects of wear and tear on a vehicle. Thank you for your assistance. Sincerely, Kitty-Jo Burton, CPCU, AIS Burton Insurance Agency, Inc. 210 Eldorado Dr., Jordan MN 55352 Phone: (952) 492-2262 Fax: (952) 492-3074 burtonin(a~frontiernet. net NOTICE: This message (including any attachments) is intended for a specific individual and may contain information that is either confidential or legally protected. If you believe that it has been sent to you in error, please reply to the sender that you have received the .., _, Aran Johnson _ ,, From: Yanta, Bill [BiII.Yanta@state.mn.us] Sent: Tuesday, June 24, 2008 1:14 PM To: Ann Johnson Subject: RE: 2 questions Hi Ann, Sorry but it has been a little nuts around here. If Denny would like to administer the tests that will be wonderful. Once we get a tentative date set and number of test takers, we can make arrangements with Denny to get the tests out to him. I would not advise using a courier service to transport or deliver plates or stickers. Your staff could certainly deliver plates or stickers after the transaction has been completed in your office. Transporting inventory by a "third" party out of a secured area like your office does not appear to be advisable. Thanks Ann. BILL YANTA BUSINESS LIAISON Vehicle Services Phone (651) 296-3290 Ext. 1 Fax (651) 797-1213 BILL.YANTACa~STATE.MN.US ----Original Message---- ~roK1: Ann Johnson I'mailto;Ann.JohnsonCc~ci.monticello:mn.usl Sent: Friday, June 20, 2008 1:17 PIVI To: Bill Yanta (E-mail) Subject: 2 questions Hello Happy Friday; We are considering hiring a courier service to pick up and deliver our plates and title deals to our dealers. Is this something that the state has any policies on? I know there are regulations regarding having the license plates and registration stickers locked up and out of contact from the public in our office. Would this regulation follow thru as far as allowing a "third" party such as a courier access to this stuff? Have a wonderful weekend :) Thank You Ann Johnson Deputy Registrar Manager Monticello #002 763-271-3241 i4 2008 12:04PM DH Goverment Sale4 • : ,:,~; :`. t;: =°55-2702 p. 1 L CON 43 Custorner ~ E # B RACT # 564 I ~ Name: e ~ - ~enny ~ac~Ce~ f MONTICELLO FORD-DQDGE ~ ~./~.e c.,t~ 1005 Hwy. 25 South • Monticello. MN 55362 Phone 763.271-8301 • Fax 7B3-296-2702 lonny®dennyhedter.com GOVERNMENT SALES ? Date: -O I ~ Year M k a e Model En ine 7Y'ansmission 2008 , FORD heel B FOCUS P35 2,0 DOHC AUTOMATIC ase Cab to Axie Color Tires P195/60R158S 1 2008 FORD FOCUS 4-DOOR SEDAN SE S eclat Bid Price: $12,517.00 Included O Ions AUTO ATIC SAFETY CANOPY I ENGIN BLOCK HEATER ~ ~ CLOTH SEATS AM-F CRU1S RADI0ICD CONTROL DRIVER & PASSENGER AIR BAGS SIDE AIR BAGS i TILT DAYTI EERING WHEEL 4-WHEEL ABS BRAKES E RUNNING LIGHTS TRACTION CONTROL- . 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I~a~~d ~ Advanced Search . ~"~Qns ~ Y `~D ~t''i ~ ~1 ~ T.~ Search Results uJ/ ~1~~ d ~.~~~~.~le ~ Year ~~ Ascendin ~? (4 Vehicles Found) Page 1 of 1 Sort Results by: ; ~ 9 i __; i r ` - 2007 Ford Focus SES Sedan 4D i Stock#: P5012 Engine: 4-Cyl. 2.0 Liter Mileage: 40,610 Color: Maroon Asking Price: ~ $10,999.00 i CI ~~_ ~'~ ~~OD _ ~ 2007 Ford Focus SE Sedan 4D Asking Price: Stock#: p4805 Engine: 4-Cyl. 2.0 Liter Mileage: 32,013 Coior: Gold $12,999.00 __._. _ i _ .._.. ____________-_..._ .__ __.._~..._ ~_ _.______._~_.~_..- .TI 2007 Ford Focus SE Sedan 4D ~ 5tock#: p4803 Engine: 4-Cyl. 2.0 Liter Mileage: 28,069 Coior: Red I E 2007 Ford Focus SES Sedan 4D f4 Stock#: p4898 Engine: 4-Cyl. 2.0 Liter Mileage: 32,041 Color: Silver I Asking Price: ' $12,999.00 ~ o. ~ (4 Vehicles Found) Page 1 of i 1 Disclaimer: All vehicles subject to prior sale. We reserve the right to make changes without notice, and are not responsible for errors or omissions. All prices exclude government fees and taxes, any finance charges, any dealer document preparation charge, and any emissions test charge. _.~ Asking Price: ' $12,999.00 http://www.cdmdata.com/cdmdigitallot/Vehicles.aspx 7/18/2008