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City Council Agenda Packet 08-22-2011AGENDA REGULARMEETING–MONTICELLOCITYCOUNCIL Monday,August22,2011–7p.m. Mayor:ClintHerbst CouncilMembers:LloydHilgart,TomPerrault,GlenPosusta,BrianStumpf 1.CalltoOrderandPledgeofAllegiance 2A.ApprovalofMinutes–August8,2011SpecialMeeting 2B.ApprovalofMinutes–August8,2011RegularMeeting 3.Considerationofaddingitemstotheagenda 4.Citizencomments,publicserviceannouncements,andstaffupdates a.CitizenComments: 1)IntroductionofMonticelloRoyalty b.PublicServiceAnnouncements: 1)MovieinthePark(9/10) c.StaffUpdates: 5.ConsentAgenda: A.ConsiderationofapprovingpaymentofbillsforAugust22nd B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments C.ConsiderationofadoptingResolution#2011-76approvingcontributionfromTom PerraultfortheGeneralFund D.ConsiderationofadoptingResolution#2011-78callingforaPublicHearingon theproposedadoptionofamodificationtotheRedevelopmentPlanforCentral MonticelloRedevelopmentProjectNo.1andtheproposedmodificationofthe TaxIncrementFinancingPlanforTaxIncrementFinancingDistrictNo.1-5 E.ConsiderationofappointingarepresentativetotheMonticelloEconomic DevelopmentAuthoritytoservetheremainingtermofanopenseat F.Considerationofauthorizingpurchaseofantennaandreceiverequipmentfor FiberNettoaddservicesforpotentialsubscribers SPECIALMEETING 4p.m.-DepartmentBudgetWorkshop G.ConsiderationofapprovingchangeordertoauthorizeuseofTrafficPatternsXD thermoplasticcrosswalkmarkingsattheintersectionof7th StreetWest&Walnut StreetaspartofCityProjectNo.11C001 H.ConsiderationofadoptingResolution#2011-80providingfortheSaleofBonds toRefundtheSeries2005AImprovementBonds I.ConsiderationofadoptingResolution#2011-77approvingfinalplatforOtter CreekCrossings4th Addition(SuburbanManufacturing) J.ConsiderationofapprovingawaiveroftheBuildingPlanReviewFeeforthenew NAPAStoreinaccordancewiththeBusinessExpansionIncentivePilotProgram 6.Considerationofitemsremovedfromtheconsentagendafordiscussion 7.PublicHearing–ConsiderationofadoptingResolution#2011-81approvingthe modificationtotheRedevelopmentPlanforCentralMonticelloRedevelopmentProject No.1andtheestablishmentofTIFDistrictNo.1-39thereinandtheadoptionoftheTIF Plan;Applicant:SuburbanManufacturing 8.ConsiderationofadoptingResolution#2011-79authorizingpreparationofplansand specificationsforMCCNatatoriumImprovements,CityProjectNo.11C006 9.ConsiderationofapprovingLaserficheconceptplanandpurchasesofadditionalsoftware licensesandequipment 10.Considerationofapprovingequipmentspecificationsandauthorizingpurchaseofa tractorformowingandsnowremovalbasedonstatecontractpricing 11.Addeditems 12.Adjournment CityCouncilAgenda:08/22/11 1 5A.ConsiderationofapprovingpaymentofbillregistersforAugust22nd (TK) A.REFERENCEANDBACKGROUND: TheattachedbillregisterscontainallinvoicesprocessedsincethelastCouncilmeeting. SubjecttoMNStatutes,mostinvoicesrequireCouncilapprovalpriortoreleasingchecks forpayment.ThedayfollowingCouncilapproval,paymentswillbereleasedunless directedotherwise. IfCouncilhasnoquestionsorcommentsonthebillregisters,thesecanbeapprovedwith theconsentagenda.Ifrequested,thisitemcanberemovedfromconsentanddiscussed priortomakingamotionforapproval. A1.BudgetImpact:None A2.StaffWorkloadImpact:Noadditionalworkrequired B.ALTERNATIVEACTIONS: 1.Motiontoapprovethebillregistersforatotalamountof$378,331.63. 2.MotiontoapprovethebillregisterswithchangesdirectedbyCouncil. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1or#2,perdirectionofCouncil. D.SUPPORTINGDATA: Billregisters CityCouncilAgenda:08/22/11 1 5B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments (TE) A.REFERENCEANDBACKGROUND: TheCouncilisaskedtoratifythehiringanddeparturesofemployeesthathaveoccurred recentlyinthedepartmentslisted.ItisrecommendedthattheCouncilofficiallyratifythe hiring/departureofalllistedemployeesincludingpart-timeandseasonalworkers. A1.BudgetImpact:(positionsaregenerallyincludedinbudget) A2.StaffWorkLoadImpact:Ifnewpositions,theremaybesometraining involved.Ifterminatedpositions,existingstaffwouldpickupthosehours,as needed,untilreplaced. B.ALTERNATIVEACTIONS: 1.Motiontoratifythehire/departuresoftheemployeesasidentifiedontheattached list. 2.Motiontodenytherecommendedhiresanddepartures. C.RECOMMENDATION: BystatutetheCityCouncilhastheauthoritytoapproveallhires/departures.Citystaff recommendsAlternative#1,fortheCounciltoapprovethehiresand/ordeparturesas listed. D.SUPPORTINGDATA: Listofnew/terminatedemployees Name Title Department Hire Date Class Ryan Parnell Sales Asst.FNM 8/8 LT Temp Anna Jones Life Guard MCC 8/12 PT Chenaniah Feliciano Liquor Store Clerk Liquor Store 8/11 PT Name Reason Department Last Day Class Beth Erickson Voluntary MCC 8/16 PT NEW EMPLOYEES TERMINATING EMPLOYEES Book1: 8/16/2011 CityCouncilAgenda:08/22/11 1 5C.ConsiderationofadoptingResolution#2011-75toacceptcontributionfromTom PerraultfortheGeneralFund (CS) A.REFERENCEANDBACKGROUND: TomPerraultiscontributing$250forAugusttogointotheGeneralFund.Asrequired bystatestatute,iftheCityacceptsthedonationoffunds,theCityCouncilneedstoadopt aresolutionspecifyingtheamountofthedonationanditsuse. A1.BudgetImpact:None A2.StaffWorkloadImpact:Staffaccountsforandreconcilesdonationscontributed throughtheCity. B.ALTERNATIVEACTIONS: 1.Approvethecontributionsandauthorizeuseoffundsasspecified. 2.Donotapprovethecontributionsandreturnthefundstothedonors. C.STAFFRECOMMENDATION: Staffrecommendationistoadopttheresolutionacceptingthecontributions. D.SUPPORTINGDATA: ResolutionNo.2011-75 CityofMonticello RESOLUTIONNO.2011-75 APPROVINGCONTRIBUTIONS WHEREAS,theCityofMonticelloisgenerallyauthorizedtoaccept contributionsofrealandpersonalpropertypursuanttoMinnesotaStatutesSections 465.03and465.04forthebenefitofitscitizensandisspecificallyauthorizedtomaintain suchpropertyforthebenefitofitscitizensinaccordancewiththetermsprescribedbythe donor.SaidgiftsmaybelimitedunderprovisionsofMNStatutesSection471.895. WHEREAS,thefollowingpersonsandorentitieshaveofferedtocontribute contributionsorgiftstotheCityaslisted: DONOR/ENTITYDESCRIPTIONVALUE TomPerraultCash$250 WHEREAS,allsaidcontributionsareintendedtoaidtheCityinestablishing facilities,operationsorprogramswithinthecity’sjurisdictioneitheraloneorin cooperationwithothers,asallowedbylaw;and WHEREAS,theCityCouncilherebyfindsthatitisappropriatetoacceptthe contributionsoffered. NOWTHEREFOREBEITRESOLVED bytheCityCouncilofMonticelloas follows: 1.ThecontributionsdescribedaboveareherebyacceptedbytheCityof Monticello. 2.Thecontributionsdescribedabovewillbeusedasdesignatedbythe donor.Thismayentailreimbursingorallocatingthemoneytoanother entitythatwillutilizethefundsforthefollowingstatedpurpose: DONOR/ENTITYRECIPIENTPURPOSE TomPerraultCityofMonticelloGeneralfund(Aug) AdoptedbytheCityCouncilofMonticellothis22nddayofAugust,2011. CITYOFMONTICELLO ______________________________ ClintHerbst,Mayor ATTEST: ______________________________________ JeffO’Neill,CityAdministrator CityCouncilAgenda:08/22/11 1 5D.ConsiderationofadoptingResolution#2011-78callingforaPublicHearingonthe proposedadoptionofamodificationtotheredevelopmentplanforCentral MonticelloRedevelopmentProjectNo.1andtheproposedadoptionofa modificationtotheTaxIncrementFinancingPlanforTaxIncrementFinancing DistrictNo.1-5,ARedevelopmentDistrict (MBL) A.REFERENCEANDBACKGROUND: TIFDistrict1-5wasoriginallycreatedforthedevelopmentof72apartmentunitsin 1985.Thedistrictencompassespropertylocatedoffof7th AvenueandFallonAvenue, alsoknownastheMonticelloBluffs.District1-5issettodecertifyonDecember31of 2012.Itisestimatedthattherewillbeafundbalanceof$489,490attheendofthelifeof thedistrict.TheCityhastheopportunitytoutilizethesefundspriortodecertifying.This districtwascreatedpriortopoolingrestrictionswereestablishedbythelegislature, thereforetheCityhastheopportunitytoutilizethesurplusTIFforlandpurchasesand siteimprovementsoutsideofthedistrictboundaryline.Inordertoaccessthesefundsthe EDAandCityCouncilarerequiredtoamendtheTIFPlanBudget. Thefirststepintheamendmentprocessistocallforapublichearing.TheEDAadopted aresolutiononAugust15,2011askingtheCityCounciltocallforapublichearingto consideramendingthebudgetplanforTIFDistrict1-5.Atthetimeofthepublichearing aspecificmodificationrequestofhowtoutilizethefundswillbebroughtforward.The actionbytheCityCouncilforthisitemistosimplycallforapublichearingdateof September26,2011. A1.BudgetImpact:Therearenoimmediatebudgetimpacts,howeverifthedistrict weretodecertifywithabalanceoffunds,thosefundswouldbereturnedtothe CountyforredistributiontoalltaxingentitiesintheCityofwhichtheCitywould receiveabout35%to40%ofthefunds. A2.StaffWorkloadImpact:TheEconomicDevelopmentDirectorwillworkwith KennedyandGravenandEhlerstodrafttheState-requireddocuments. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2011-78callingforapublichearingtobeheldon September26,2011,toconsidertheproposedModificationtotheRedevelopment PlanforCentralMonticelloRedevelopmentProjectNo.1andtheproposed adoptionofamodificationtotheTaxIncrementFinancingPlanforTIFDistrict 1-5. 2.MotiontodenycallingforaPublicHearingatthistime. CityCouncilAgenda:08/22/11 2 C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1.TIFDistrict1-5hasavailablesurplusTIFdollars theEDAandCityCouncilcanutilizeforafutureidentifiedproject.Callingforthepublic hearingisthefirststepintheprocessofaccessingthefunds.Atthetimeofthepublic hearingCityStaffandtheEDAwillbringforwardrecommendationsofeligibleprojects toutilizethesesurplusfunds. D.SUPPORTINGDATA: Resolution#2011-78 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2011-78 CALLINGFORAPUBLICHEARINGONTHEPROPOSEDADOPTION OFAMODIFICATIONTOTHEREDEVELOPMENTPLANFOR CENTRALMONTICELLOREDEVELOPMENTPROJECTNO.1AND THEPROPOSEDADOPTIONOFAMODIFICATIONTOTHETAX INCREMENTFINANCINGPLANFORTAXINCREMENTFINANCING DISTRICTNO.1-5,AREDEVELOPMENTDISTRICT BEITRESOLVED bytheCityCouncil(the"Council")fortheCityofMonticello,Minnesota (the"City"),asfollows: Section1.PublicHearing.PursuanttoarequestbytheCityofMonticelloEconomic DevelopmentAuthority(the“Authority”),thisCouncilshallmeetonSeptember26,2011,at approximately7 P.M.toholdapublichearingontheproposedadoptionofaModificationtothe RedevelopmentPlanforCentralMonticelloRedevelopmentProjectNo.1andtheproposed adoptionofaModificationtotheTaxIncrementFinancingPlanforTaxIncrementFinancing DistrictNo.1-5(together,the“Modifications”),pursuanttoMinnesotaStatutes,Sections 469.090to469.1082andSections469.174to469.1799,asamended,inanefforttoencourage thedevelopmentandredevelopmentofcertaindesignatedareaswithintheCity. Section2.NoticeofPublicHearing,FilingofModifications.CityandAuthoritystaff andconsultantsareauthorizedanddirectedtopreparetheModificationsandtoforward documentstotheappropriatetaxingjurisdictionsincludingWrightCountyandIndependent SchoolDistrictNo.882.TheCityAdministratorisauthorizedanddirectedtocausenoticeofthe hearing,togetherwithanappropriatemapasrequiredbylaw,tobepublishedatleastonceinthe officialnewspaperoftheCitynotlessthan10normorethan30dayspriortothepublichearing, andtomakeacopyoftheModificationsavailableforinspectionbythepublicintheCity Administrator’sofficeatCityHall. ADOPTEDBY theCityCounciloftheCityofMonticellothis22nddayofAugust,2011. CITYOFMONTICELLO ____________________________________ Mayor ATTEST: ___________________________________ CityAdministrator CityCouncilAgenda:08/22/11 1 5E.ConsiderationofappointingarepresentativetotheMonticelloEconomic DevelopmentAuthoritytoservetheremainingtermofanopenseat (MBL) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoappointarepresentativetotheEDAtofillacurrent vacancy.TheEDAmetandinterviewedtwocandidatesonMonday,August15.Based oninformationobtainedduringtheinterviewstheEDAisrecommendingtheapprovalof Mr.Hammond. Mr.HammondisaresidentandbusinessownerofMonticello.Hehasavarietyofpast volunteerexperienceinMonticello.Mostnotableishismanyyearsofserviceonthe HospitalBoard.TheEDAbelievesMr.Hammondwouldprovideawideperspectiveof knowledgeontheEDAbasedonbeingaresidentandsmallbusinessownerinthe communityformanyyears. Mr.HammondwouldbeservingtheremainderofapreviousEDAterm,whichissetto expireonDecember31,2011. B.ALTERNATIVEACTIONS: 1.MotiontoapprovetheappointmentofBruceHammondtotheMonticello EconomicDevelopmentAuthoritywiththetermendingDecember31,2011. 2.Motiontonotapprovetheappointment. C.STAFFRECOMMENDATION: CityStaffandtheEDArecommendAlternative#1. D.SUPPORTINGDATA: CopyofresumeforBruceHammond CityCouncilAgenda:08/22/11 1 5F.Considerationofauthorizingpurchaseofantennaandreceiverequipmentfor FiberNettoaddservicesforpotentialsubscribers (JO/BR) A.REFERENCEANDBACKGROUND: Councilisaskedtoapprovethepurchaseofantennaandreceiversenablingprovisionof internetservicestopotentialcustomerswithinthecommunity,whereitisnotfeasibleto provideserviceviadirectfiberopticconnection.Thisrequestincludesauthorizationto purchaseadditionalequipmentonanincrementalbasisaswarrantedbydemand. A1.BudgetImpact:Thecostoftheinitialequipmentisis$22,400whichwould service160customers.Thisequatesto$140percustomerresultinginapayback onapercustomerbasisoffivemonths.Itisanticipatedthatdemandwillbe equaltoorgreaterthan160customerssoitisourviewthatthisisagood investment. A2.StaffWorkloadImpact:HBChasbeenoperatingthistechnologysuccessfully intheWinonaarea.CurrentstaffandHBCarewillbeinvolvedin implementationofthesystemandinstallationtocustomers. B.ALTERNATIVEACTIONS: 1.Motiontoauthorizepurchaseofantennaandreceiverequipmentatacostof $22,400andauthorizepurchaseofadditionalequipmentaswarrantedbydemand. 2.Motiontodenyauthorizingpurchaseofantennaandreceiverequipmentatthis time. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1. D.SUPPORTINGDATA: None City CouncilAgenda:8/22/11 1 5G.ConsiderationofapprovingchangeordertoauthorizeuseofTrafficPatternsXD thermoplasticcrosswalkmarkingsattheintersectionof7th StreetWest&Walnut StreetaspartofCityProjectNo.11C001 (BW/JO) A.REFERENCEANDBACKGROUND: CityCouncilisaskedtoconsideraddinginstallationofTrafficPatternsXDthermoplastic crosswalkmarkingsattheintersectionof7th StreetWestandWalnutStreetwiththe upcomingimprovementproject.Thisisthesamecrosswalkdesignrecentlyapprovedfor theWalnutStreet/MCCcrosswalks.Thischangeorderisproposedforthesakeof improvingsafety,reducinglongtermmaintenancecosts,andtobeconsistentwiththe recentlyapprovedmarkingsinfrontoftheCommunityCenter. TheintersectionofWest7th StreetandWalnutStreetiscurrentlybeingreconstructedas partofCityImprovementProjectNo.11C001.Asyouknow,improvementswillconsist oftheadditionofdedicatedleftturnlanesonbothlegsofWest7th Street,aswellas dedicatedrightturnandthrough-leftturnlanesonthenorthlegofWalnutStreet.Figure 1,whichisattachedassupportingdata,showstheproposedimprovements. Newpedestrianfacilitiesthatwillbeconstructedwiththeprojectincludenewsidewalk, signing,striping,ADAcomplaintpedestriancurbramps,andsolar-powered,pedestrian activatedblinkingLEDpedestriancrosswalksignsoneachendoftheWest7th Street crosswalkmeanttoincreasethevisibilityofthe7th Streetcrosswalk,especiallyatnight. OnJuly25th Councilapprovedtheinstallationofaggregatereinforcedthermoplastic crosswalkmarkings,calledTrafficPatternsXD,overstampedbituminouspavementfor thetwopedestriancrosswalksattheintersectionofWalnutand5½Streets.These markingswillcloselymatchthecolor,patternandtextureofthestamped,colored concretebeinginstalledintheboulevardsalongWalnutStreetwithCityImprovement ProjectNo.11C003.Thesearethesamepavementmarkingsrecentlyinstalledatthe intersectionofHighway’s10&25inBigLake.Picturesofthesepavementmarkingsare attachedassupportingdata. DecorativePavementMarkings(DPM)willbeinstallingtheTrafficPatternsXDmarkings atWalnutand5½StreetsafterPublicWorksremovestheexistingpavercrosswalksand pavestheresultingvoids.DPMwarrantiesthenewcrosswalkmarkingsforaperiodof one-yearfromdateofinstallation.Thatsaid,staffisawareofseveralTrafficPatternsXD crosswalkmarkingsthathavebeeninplaceforseveralyearsandunderstandtherehave beennoissueswiththedurabilityofthemarkingsbasedonnormalwearandteardueto traffic,snowplows,sweepersandotherstreetand/orsidewalkmaintenanceequipment. DPMisoftheopinionthattheTrafficPatternsXDmarkingsshouldlastfor10+years. IftheTrafficPatternsXDmarkingsdolastfor10yearsormore,theywillbesaferandless costlytomaintainsincethemarkingswillnotfadeawayandneedtobereplacedevery1 to5yearslikeourtypicalcrosswalkmarkingsdo,dependingonpaintandmaterialtype andlocation. City CouncilAgenda:8/22/11 2 DPMsaidtheywillhonortheirdemoprojectunitcostof$16.50persquarefootforthe TrafficPatternsXDmarkingsforthetwocrosswalksatWest7th andWalnutStreets. Basedonan8-footwidth,thecrosswalkareastotal770squarefeet,resultinginatotal costof$12,705toinstalltheTrafficPatternsXDmarkings.Aftersubtractingthebidcost of$3,380forthewhitezebracrosswalkmarkingsoriginallyproposedforthecrosswalks, thetotaladditionalcosttotheprojectwillbe$9,325. IfCouncilwishestoprovideuniformcrosswalkmarkingsalongWalnutStreetstaff recommendsinstallingtheTrafficPatternsXDmarkingsinplaceoftheproposedwhite zebracrosswalkmarkings. A1.BudgetImpact:Asisnotedabove,basedonthequotereceivedfromDecorative PavementMarkingsitwouldcostapproximately$9,325toreplacetheproposed whitezebracrosswalkmarkingswithTrafficPatternsXDthermoplasticpavement markingsonbothcrosswalksatWest7th andWalnutStreets.Themarkings wouldbeaddedintoandpaidthroughthe2011StreetReconstructionprojectasa changeorder. A2.StaffWorkloadImpact:Staffimpactswillbenegligibleforthisitem. B.ALTERNATIVEACTIONS: 1.MotionapprovingchangeordertoauthorizeuseofTrafficPatternsXD thermoplasticcrosswalkmarkingsattheintersectionof7th StreetWest&Walnut StreetaspartofCityProjectNo.11C001. 2.MotiondenyingapprovalofchangeordertoauthorizeuseofTrafficPatternsXD thermoplasticcrosswalkmarkingsattheintersectionof7th StreetWest&Walnut StreetaspartofCityProjectNo.11C001atthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1ifCouncilwantsthecrosswalksatWalnutand West7th StreetstomatchthecrosswalkmarkingsattheintersectionofWalnutand5½ Streets.Asisnotedabove,theTrafficPatternsXDmarkingsareexpectedtoprovidean increasedlevelofsafetyandreducedmaintenancecostsoverthelifeofthemarkings,but sincewedon’tknowexactlyhowlongtheirusefullifewillbeitisimpossibleto determinemaintenancecostsavings. D.SUPPORTINGDATA: Figure1–ProposedImprovementstoWest7th StreetandWalnutStreet TwopicturesofTrafficPatternsXDcrosswalksatTH25&Hwy10 QuotefromDecorativePavementMarkingLLC WarrantyTermsandConditionsfromDecorativePavementMarkingLLC CityCouncilAgenda:8/22/11 1 5H.ConsiderationofadoptingResolution#2011-80providingfortheSaleofBondsto RefundtheSeries2005AImprovementBonds (TK) A.REFERENCEANDBACKGROUND: TheCityissued$25,150,000inG.O.Bonds,Series2005A,whichfinancedanumberof projectsincludingCSAH18Interchangeproject.Thisbondhascurrentinterestrates between4.00%and4.25%.ThesebondsarecallableonFebruary1,2013.Dueto currentinterestratesitisproposedthattheCitydowhatiscalledanadvancerefundingof thisdebt.TheCitywouldissueaG.O.RefundingBondintheamountof$11,005,000. Itisestimated,basedoncurrentinterestratesandtheCity’scurrentbondratingfrom Moody’sInvestorServices,thatthenewbondswouldhaveaninterestraterangingfrom 0.60%upto3.05%andresultinginaninterestsavingsof$598,229.73. ThePre-salereportfromEhlersisattachedoutliningthedetailsoftheproposedsale. A1.BudgetImpact:Thereisnoimmediatebudgetimpact,butbeginningin2013the newlowerinterestrateswillbeineffectand,overthelifeofthebond,savethe Cityabout$598,000.00ofwhichsomeispaidwithapropertytaxlevy. A2.StaffWorkloadImpact:Therewouldbelittletonoimpactonstaff. B.ALTERNATIVEACTIONS: 1.AdoptResolution#2011-80providingforthesaleof$11,005,000G.O. RefundingBonds,Series2011A. 2.Donotadopttheresolutionprovidingforthesaleof$11,005,000G.O. RefundingBonds,Series2011A. C.STAFFRECOMMENDATION: TheCitystaffsupportsAlternative1. D.SUPPORTINGDATA: Resolution#2011-80 Pre-SaleReportfor$11,005,000G.O.RefundingBonds,Series2011A CITYOFMONTICELLO WRIGHTCOUNTYMINNESOTA RESOLUTIONNO.2011-80 PROVIDINGFORTHESALEOF$11,005,000GENERALOBLIGATION REFUNDINGBONDS,SERIES2011A WHEREAS,theCityCounciloftheCityofMonticellohasheretoforedeterminedthatitis necessaryandexpedienttoissuetheCity’s$11,005,000GeneralObligationRefundingBonds, Series2011(the“Bonds”),tocrossoverrefundtheCity’soutstandingGeneralObligationBonds, Series2005A;and WHEREAS,theCityhasretainedEhlersandAssociates,Inc.,inRoseville,Minnesota (“Ehlers”),asitsindependentfinancialadvisorfortheBondsandisthereforeauthorizedto solicitproposalsinaccordancewithMinnesotaStatutes,Section475.60,Subdivision2(9); NOWTHEREFORE,BEITRESOLVED bytheCityCounciloftheCityofMonticello, Minnesotaasfollows: 1.Authorization;Findings.TheCityCouncilherebyauthorizesEhlerstosolicitproposals forthesaleoftheBonds. 2.Meeting;ProposalOpening.TheCityCouncilshallmeetat7:00p.m.onSeptember26, 2011,forthepurposeofconsideringproposalsforandawardingthesaleoftheBonds. 3.OfficialStatement.Inconnectionwithsaidsale,theofficersoremployeesoftheCityare herebyauthorizedtocooperatewithEhlersandparticipateinthepreparationofan officialstatementfortheBondsandtoexecuteanddeliveritonbehalfoftheCityupon itscompletion. ADOPTEDBY theMonticelloCityCouncilthis22nddayofAugust,2011. CITYOFMONTICELLO ___________________________________ ClintHerbst,Mayor ATTEST: ____________________________________ JeffO’Neill,CityAdministrator VOTINGINFAVOR: VOTINGINOPPOSITION: CityCouncilAgenda:08/22/11 1 5I.ConsiderationofadoptingResolution#2011-77approvingOtterCreekCrossing4th AdditionFinalPlatandestablishingdrainageandutilityeasements.Applicant: MonticelloEconomicDevelopmentAuthority (AS) A.REFERENCEANDBACKGROUND: TheMonticelloEconomicDevelopmentAuthorityisrequestingCityCouncilapprovalof afinalplatforOtterCreekCrossing4th Addition,asinglelotindustrialsubdivision locatedalongChelseaRoadjusteastofCountyRoad39. TheplatisareplatofportionsofOtterCreekCrossing2nd and3rd Additions.The propertyisownedbytheCityofMonticello.Thefinalplatisproposedtofacilitatethe relocatingofSuburbanManufacturing. Thelotbeingcreatedis193,364squarefeet,or4.439acres.Withtheexceptionofthe plattedLot1,Block1,thebalanceofthepropertywillbereplattedasoutlots.The proposedOutlotAisbeingplattedseparatelyforpotentialfuturedevelopment.OutlotA is5.276acresinarea.OutlotBcoversbothawetlandcomplexandaregionalstormwater retentionpond,includingtheoutletsfromDaltonCourtandDaltonAvenue.Thewetland hasbeendelineatedandtheproposedOutlotBcoverstheentirenon-buildableareafor thewetland.OutlotBitselfis2.665acresinarea.TheCitywillretainownershipofboth OutlotAandB. Therequired12’drainageandutilityeasementsareinplacealongthenorthandeast propertylines,and20’ofdrainageandutilityeasementisinplacealongthesouth propertylinetoaccommodatetheextensionofthestormseweroutletfromDalton Avenuetotheregionalstormwaterpond.Thestandardrequired12’drainageandutility easementisnotrequiredonthewesternpropertyline/platedgeadjacenttoOutlotB,as theCitywillcontinuetoownandmaintainthewetlandandstormwaterpond. ThepropertytobeplattedislocatedinanI-1(LightIndustrial)District,whichrequiresa lotwidthof100feet.Lot1,Block1meetsthisrequirement,withlotwidthsofover200 feetalongChelseaand239feetalongDaltonAvenue.TheI-1Districtalsorequiresa baselotareaof20,000feet,whichiseasilymetforLot1,Block1. AccesstoLot1,Block1willprovidedfromDaltonAvenue,asaccessfromChelsea wouldbeprohibitivegiventhenorthernlotwidthanddistancetothecornerofChelsea andDaltonAvenue. TheCityEngineerhasreviewedthefinalplatandhasfoundthattheplatmeetsallother requirementsfordrainageandutilitypurposes. TheCityCouncilandEDAwillbereviewingtheproposedpurchaseagreementandTIF PlanattheirSeptembermeetings. CityCouncilAgenda:08/22/11 2 A1.BudgetImpact:Thecostsrelatedtothewetlanddelineationandplattingofthe propertyfortheproposedindustrialuserisincludedinthelandsaletransaction andTIFagreement. A2.StaffWorkloadImpact:Staffreviewofthefinalplathasbeencompletedand costsforsuchreviewwillbecoveredunderthelandsaletransactionandTIF agreement.Staffwillprovidenecessarysupportforfinalplatexecutionand recording. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2011-77,approvingtheFinalPlatofOtterCreek Crossing4th Addition. 2.MotiontodenyadoptionofResolution#2011-77,approvingtheFinalPlatof OtterCreekCrossing4th Addition. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1forapprovaloftheFinalPlat. D.SUPPORTINGDATA: A:Resolution2011-77 B:ProposedFinalPlat,OtterCreekCrossing4th Addition C:OtterCreekCrossing2nd Addition D:OtterCreekCrossing3rd Addition CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2010-77 APPROVINGFINALPLAT–OTTERCREEKCROSSINGS4THADDITION WHEREAS,thePlanningCommissionheldapublichearingonNovember1,2004,forthe considerationofthepreliminaryplatoftheOtterCreekCrossings;and WHEREAS,aftertakingpubliccomment,thePlanningCommissionrecommendedapprovalof thepreliminaryplatoftheOtterCreekCrossingstotheCityCouncil;and WHEREAS,theCouncilreviewedtherecommendationofthePlanningCommissionand approvedthepreliminaryplatoftheOtterCreekCrossings4thAdditiononNovember24,2004; and WHEREAS,thefinalplatoftheOtterCreekCrossings4thAdditionisconsistentwiththe approvedpreliminaryplat. NOWTHEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFMONTICELLO, MINNESOTA,thatthefinalplatoftheOtterCreekCrossings4thAddition,withdrainageand utilityeasementsasrequired,isherebyapprovedcontingentuponmeetingallconditionsofthe subdivisionordinance. ADOPTEDBY theMonticelloCityCouncilthis22nddayofAugust,2011. CITYOFMONTICELLO _______________________________ ClintHerbst,Mayor ATTEST: _______________________________ JeffO’Neill,CityAdministrator CityCouncilAgenda:8/22/11 1 5J.ConsiderationofapprovingawaiveroftheBuildingPlanReviewFeeforthenew NAPAStoreinaccordancewiththeBusinessExpansionIncentivePilotProgram (MB) A.REFERENCEANDBACKGROUND: TheCouncilauthorizedaBusinessExpansionIncentiveprograminJanuaryof2011. Theapprovedprogramstructureallowedforapplicantstoreceiveupto$5,000in buildingorplanningfeereductions.Theassistancewouldbeappliedonlytotheplan reviewcomponentofthebuildingpermitcost,planningapplication,ordemolition permits. Toqualifyfortheprogram,applicantsneedtobeanexistingbusinessseekingtoexpand attheircurrentlocationorexpandatanewlocationnMonticello.Theapplicantalso needstodemonstrateanabilitytomeetatleasttwoofthefollowingcriteria: 1.Createorretainjobs. 2.Redevelopment,expansion,orrenewalofexistingvacantunderutilized existingcommercialorindustrialproperties/buildings,includingoneofthe following: a)Increasebuildingsquarefootage b)Increasebuildingvaluation c)Increasedvisualappearanceorfunctionoffacility d)Productorserviceexpansion e)OccurswithintheCentralCommunityDistrict CityStaffreceivedanapplicationfromtheNAPArequestingtoutilizethebusiness expansionincentiveprogramtoreceiveawaiverofthebuildingpermitplanreviewfee fortheconstructionofanewretailstore.Theapplicantisproposingtocompletethebuild outofanewNAPAstorewithintheLandmarkCenterbuildinglocatedoffofCedar Street.Itisanticipatedthenewfacilitywillgeneratesixtoeightadditionaljobsin Monticello. TheBuildingOfficialhasestimatedthebuildingpermitplanreviewfeeat$800.53. ConstructionoftheoutershellofthebuildinghasalreadycommencedandtheNAPA buildoutisanticipatedtooccurbytheendofAugusttobeginningofSeptember. A1.BudgetImpact:ThecurrentcashbalanceoftheBusinessExpansionaccountin theLiquorStoreFundis$19,764.UponapprovaloftheNAPAapplication,the fundbalancewillbe$18,964.39. A2.StaffWorkloadImpact:Staffworkloadrequirementsconsistedofwritingthe Councilstaffreport. CityCouncilAgenda:8/22/11 2 B.ALTERNATIVEACTIONS: 1.Motiontoapprovewaivingtheestimated$800.53buildingplanreviewfeeonthe buildingpermitforthebuildoutofanewNAPAretailstoreaspartofthe BusinessExpansionIncentivePilotProgram. 2.Motiontodenywaivingthebuildingpermitplanreviewfee. C.STAFFRECOMMENDATION: StaffrecommendsAlternative#1.Theproposedprojectmeetstheobjectivesofthe approvedBusinessExpansionIncentivePilotprogrambyaddingsquarefootage,creating additionaljobs,andincreasingbuildingvaluationinMonticello.Furthermore,theCity Councilhasapprovedpreviouswaiverrequests(Belde,Aroplax,DLLK,Monticello-Big LakePetHospital,LandmarkCenter). D.SUPPORTINGDATA: BusinessExpansionIncentivePilotApplicationforNAPA CityCouncilAgenda:08/22/11 1 5K.AddedItem–ConsiderationtoapproveAmendedResolution2011-054,Approving VacationofaportionofdrainageandutilityeasementsforOutlotA,Monticello BusinessCenter5th Addition (AS) A.REFERENCEANDBACKGROUND: InreviewingtheResolution2011-54inconjunctionwiththenewlysubmittedplatof MonticelloBusinessCenter6th Addition,theWrightCountySurveyor’sOfficehas indicatedconcernwithaspecificclauseintheoriginalresolution,whichreferredtothe publichavinganon-goingrighttoutilizethevacatedarea.Thatlanguageisprovided below. WHEREAS,anyperson,corporationorpublicbodyowningorcontrolling easementscontaineduponthepropertyvacated,reservestherighttocontinue maintainingthesameortoenteruponsuchwayorportionthereofvacatedto maintain,repair,replaceorotherwiseattendthereto; TheSurveyor’sofficehasindicatedthatinordertoproperlyestablishtheneweasements andrelinquishallpubliceasementrightsovertheareatobeplatted,theamended resolution,whicheliminatestheproblematicclause,mustbeadoptedbytheCityCouncil. A1.BudgetImpact:Asecondrecordingfeefortheamendedresolutionwillbe required. A2.StaffWorkloadImpact:Minorstafftimehasbeenneededtoadjustresolution. B.ALTERNATIVEACTIONS: 1.MotiontoapproveAmendedResolution#2011-54,ApprovingVacationofaportion ofdrainageandutilityeasementsforOutlotA,MonticelloBusinessCenter5th Addition. 2.MotiontodenyapprovaloftheAmendedResolution#2011-54atthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1. D.SUPPORTINGDATA: AmendedResolution#2011-054 CITYOFMONTICELLO WRIGHTCOUNTYMINNESOTA AMENDEDRESOLUTIONNO.2011-54A APPROVINGVACATIONOFAPORTIONOFDRAINAGEANDUTILITY EASEMENTSFOROUTLOTA,MONTICELLOBUSINESSCENTER5THADDITION UPONPETITIONOFTHEPROPERTYOWNER,QUADDEVELOPMENTLLC WHEREAS,onMay31,2011,anapplicationandpetitionsignedbythepropertyownerofsaid property,toconsidervacationofdrainageandutilityeasementsasdescribedbelow,wasreceived intheofficeoftheCityClerk;and WHEREAS,anoticeofPublicHearingwaspublishedonJune9and16,2011,pursuantto MinnesotaStateStatutes412.851;and WHEREAS,anoticeofPublicHearingwasmailedonJune16,2011,toallpropertyownersthat couldbeaffectedbysaideasementvacation;and WHEREAS,aPublicHearingonthevacationofdrainageandutilityeasementsoverandacross thefollowingdescribedpropertywasheldonJune27,2011at7p.m.attheMonticelloCity CouncilChambers: OutlotA,MonticelloBusinessCenter5thAddition,accordingtotherecordedplat thereof,CityofMonticello,WrightCounty,Minnesota. NOWTHEREFORE,BEITHEREBYRESOLVED,thattheCityCounciloftheCityof Monticelloordainsthattheabovedescribeddrainageandutilityeasementsarevacated;and BEITFURTHERRESOLVED,thattheneededdrainageandutilityeasementsshallbe reestablishedontheplatofMonticelloBusinessCenter6th Addition,accordingtotheplatthereof andapprovedbytheCityCounciloftheCityofMonticelloonJune13th,2011. ADOPTEDBY theMonticelloCityCouncilthis22nd dayofAugust,2011. CITYOFMONTICELLO ________________________________ ClintHerbst,Mayor ATTEST: ___________________________________ JeffO’Neill,CityAdministrator CERTIFICATION STATEOFMINNESOTA COUNTYOFWRIGHT Iherebycertifythattheforegoingisatrueandcorrectcopyofaresolutiondulypassed, adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingonJune27, 2011andAugust22,2011,andrecordedinminutesofsaidmeeting. ____________________________________ JeffO’Neill,CityAdministrator NotaryPublic:_______________________________ Date:___________________________ (STAMP) CityCouncilAgenda:08/22/11 1 7.PublicHearing:ConsiderationofadoptingResolution#2011-81modifyingthe RedevelopmentPlanforCentralMonticelloRedevelopmentProjectNo.1and approvingtheestablishmentofTaxIncrementFinancingDistrict1-39(Suburban Manufacturing)(MBL) A.REFERENCEANDBACKGROUND: SuburbanManufacturingiscurrentlylocatedat301ChelseaRoad.Thecompanyis experiencingtremendousgrowthanddesirestoexpandtheircurrentfacility.Bradand MaryBarger,ownersofSuburbanManufacturing,areproposingtorelocatetheir businessandconstructa39,216squarefoot office,machining,andwarehousefacilityin theMonticelloBusinessCenter.Theproposedprojectwillbring12-14newfull-time permanentlivablewagejobstoMonticello.Theproposedmanufacturingbuilding complieswiththecovenantsestablishedfortheMonticelloBusinessCenter.Adetailed analysisofthesiteplanandbuildingwillbecompletedatthetimeofbuildingpermit submittal. AspartoftheconsentagendatheCitywillbeaskedtoapproveafinalplatsubdividinga portionofOtterCreekintoa4.4acreparceltofacilitatethedevelopmentofSuburban Manufacturing’snewfacility.ItisanticipatedtheparcelwouldbeconveyedtoSuburban ManufacturingoritsparentLLCinSeptember.Theproposednewlotmeetsallthe requiredplattingregulationsestablishedinCityCode. TheapplicanthasrequestedTaxIncrementFinancing(TIF)assistanceinordertomake theexpansionbecomeareality.AspartoftheTIFprocesstheEDAandCityCouncilare requiredtoholdapublichearingtoconsiderthecreationofanewTIFdistrictand approveaTIFBudget.TheCityCouncilisbeingaskedtoadoptResolution2011-81 establishingTIFDistrict1-39forthepurposeofassistingSuburbanManufacturingin theirrelocationandexpansionneeds. TheEDAopenedandcontinuedtherequiredpublichearingtoconsidercreatingTIF District1-39,approvingaTIFPlan,andconveyingpropertytotheapplicantattheir August15,2011meeting.Thecontinuationwasbasedonthefactthatconsultants,City staff,andtheapplicantareworkingthroughdetailedlanguageinthebusinesssubsidy agreement.GenerallyspeakingallpartiesagreetotheTIFassistancepackageasitrelates towritingdownlandcostsandaddressingtrunkfees.However,banksrequire substantiallydifferentloantovaluetermsinthiseconomyandthereforeweareforcedto takeamoredetailedanalysisonhowwe“value”landinthesubsidyandlandconveyance agreement.TheEDAisresponsibleforapprovingthefinalbusinesssubsidyand conveyanceoflandagreementandthereforeitseemedappropriatetocontinuethepublic hearinguntilafinalagreementwasbroughtforward. TheCityCouncilisresponsibleforholdingapublichearingtocreateanewTIFdistrict. StaffisconfidentthatEhlers,KennedyandGraven,andtheapplicantwillbeableto workthroughthesemanticsoflanguageinthesubsidyagreement.AdraftTIFPlan summaryhasbeenattachedtothisagendaitem.TheTIFPlanlaysoutgenerallyhowthe CityCouncilAgenda:08/22/11 2 TIFfundswillbeallocated(i.e.land,siteimprovements,etc.)andthenthesubsidy agreementoutlinesthedetailsofassistancerelatedto:priceofland,trunkfees,building standards,jobcreationrequirements,etc. A1.BudgetImpact:Theapplicantwillberequiredtopayforexpensesincurred fromtheCity’sfinancialandlegalconsultants. A2.StaffWorkloadImpact:TheEconomicDevelopmentDirectorwillprocessthe applicationandTIFplanincoordinationwiththeCity’sfinancialandlegal consultants. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2011-81approvingaModificationtothe RedevelopmentPlanforCentralMonticelloRedevelopmentProjectNo.1andthe establishingTaxIncrementFinancingDistrict1-39(SuburbanManufacturing). 2.MotiontodenyadoptingResolution#2011-81. 3.Motiontocontinuethepublichearingtoallowforfurtherresearchanddiscussion ontheproposedTIFPlan. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1.SuburbanManufacturingisalocalcompany desiringtoexpandtheircurrentfacilityintheEDA/Cityownedindustrialpark.The companywillcreateadditionallivablewagejobsandexpandtheCity’staxbaseinthe future.TheCityandEDAhaveapprovedmanyrequestssimilartoSuburban Manufacturing’s(i.e.Karlsburger,DahlheimerDistribution,UMC).TheCityandEDA haveshownandstatedadesiretosupportlocalbusinessexpansions.Therefore,staff believescreatingTIFDistrict1-39isinaccordancewithpastpracticeanddesiredCity Councildirectiontosupportlocalbusinessexpansions.EhlersandKennedyandGraven areworkingondetailedbusinesssubsidylanguageanditisstaff’sbelievebyMonday eveningallpartieswillbeinagreementandwecancontinuetomovethroughtheTIF process.SuburbanManufacturingwouldliketobeginconstructionbymidSeptember; thereforeitisimportanttokeeptheTIFprocessmovingforwardinatimelymanner. D.SUPPORTINGDATA: Resolution#2011-81 ProposedTIFPlanSummary CITYOFMONTICELLO WRIGHTCOUNTY STATEOFMINNESOTA RESOLUTIONNO.2011-81 ADOPTINGAMODIFICATIONTOTHEREDEVELOPMENTPLAN FORCENTRALMONTICELLOREDEVELOPMENTPROJECTNO.1; ANDESTABLISHINGTAXINCREMENTFINANCINGDISTRICTNO. 1-39THEREINANDADOPTINGATAXINCREMENTFINANCING PLANTHEREFOR BEITRESOLVED bytheCityCouncil(the"Council")oftheCityofMonticello, Minnesota(the"City"),asfollows: Section1.Recitals. 1.01.TheBoardofCommissionersoftheCityofMonticelloEconomicDevelopment Authority(the"EDA")hasheretoforeacceptedjurisdictionoverCentralMonticello RedevelopmentProjectNo.1andtheRedevelopmentPlantherefore.Ithasbeenproposedby theEDAandtheCitythattheCityadoptaModificationtotheRedevelopmentPlan(the "RedevelopmentPlanModification")forCentralMonticelloRedevelopmentProjectNo.1(the "ProjectArea")andestablishTaxIncrementFinancingDistrictNo.1-39(the"District")therein andadoptaTaxIncrementFinancingPlan(the"TIFPlan")therefor(theRedevelopmentPlan ModificationandtheTIFPlanarereferredtocollectivelyhereinasthe"Plans");allpursuantto andinconformitywithapplicablelaw,includingMinnesotaStatutes,Sections469.001to 469.047,Sections469.090to469.1082andSections469.174to469.1799,allinclusive,as amended,(the"Act")allasreflectedinthePlans,andpresentedfortheCouncil'sconsideration. 1.02.TheEDAandCityhaveinvestigatedthefactsrelatingtothePlansandhave causedthePlanstobeprepared. 1.03.TheEDAandCitywillperformallactionsrequiredbylawtobeperformedprior tocertificationoftheDistrictandtheadoptionandapprovaloftheproposedPlans,including,but notlimitedto,notificationofWrightCountyandIndependentSchoolDistrictNo.882having taxingjurisdictionoverthepropertytobeincludedintheDistrict,areviewofandwritten commentonthePlansbytheCityPlanningCommissiononAugust2,2011,approvalofthe PlansbytheEDA,andtheholdingofapublichearinguponpublishednoticeasrequiredbylaw. 1.04.Certainwrittenreports(the''Reports")relatingtothePlansandtotheactivities contemplatedthereinhaveheretoforebeenpreparedbystaffandconsultantsandsubmittedtothe Counciland/ormadeapartoftheCityfilesandproceedingsonthePlans.TheReportsinclude data,informationand/orsubstantiationconstitutingorrelatingtothebasisfortheotherfindings anddeterminationsmadeinthisresolution.TheCouncilherebyconfirms,ratifiesandadoptsthe Reports,whichareherebyincorporatedintoandmadeasfullyapartofthisresolutiontothe sameextentasifsetforthinfullherein. 1.05.TheCityisnotmodifyingtheboundariesoftheProjectArea,butishowever, modifyingtheRedevelopmentPlantherefor. Section2.FindingsfortheAdoptionandApprovaloftheRedevelopmentPlanModification. 2.01.TheCouncilapprovestheRedevelopmentPlanModification,andspecifically findsthat:(a)thelandwithintheProjectareawouldnotbeavailableforredevelopmentwithout thefinancialaidtobesoughtunderthisRedevelopmentPlan;(b)theRedevelopmentPlan,as modified,willaffordmaximumopportunity,consistentwiththeneedsoftheCityasawhole,for thedevelopmentoftheProjectbyprivateenterprise;and(c)thattheRedevelopmentPlan,as modified,conformstothegeneralplanforthedevelopmentoftheCityasawhole. Section3.FindingsfortheEstablishmentofTaxIncrementFinancingDistrictNo.1-39. 3.01.TheCouncilherebyfindsthattheDistrictisinthepublicinterestandisan "economicdevelopmentdistrict"underMinnesotaStatutes,Section469.174,Subd.12ofthe Act. 3.02.TheCouncilfurtherfindsthattheproposeddevelopmentwouldnotoccursolely throughprivateinvestmentwithinthereasonablyforeseeablefutureandthattheincreased marketvalueofthesitethatcouldreasonablybeexpectedtooccurwithouttheuseoftax incrementfinancingwouldbelessthantheincreaseinthemarketvalueestimatedtoresultfrom theproposeddevelopmentaftersubtractingthepresentvalueoftheprojectedtaxincrementsfor themaximumdurationoftheDistrictpermittedbytheTaxIncrementFinancingPlan,thatthe PlansconformtothegeneralplanforthedevelopmentorredevelopmentoftheCityasawhole; andthatthePlanswillaffordmaximumopportunityconsistentwiththesoundneedsoftheCity asawhole,fortheredevelopmentordevelopmentoftheDistrictbyprivateenterprise. 3.03.TheCouncilfurtherfinds,declaresanddeterminesthattheCitymadetheabove findingsstatedinthisSectionandhassetforththereasonsandsupportingfactsforeach determinationinwriting,attachedheretoasExhibitA. Section4.PublicPurpose. 4.01.TheadoptionofthePlansconformsinallrespectstotherequirementsoftheAct andwillresultinincreasedemploymentinthestateandtherebyservesapublicpurpose.Forthe reasonsdescribedinExhibitA,theCitybelievesthesebenefitsdirectlyderivefromthetax incrementassistanceprovidedundertheTIFPlan.Aprivatedeveloperwillreceiveonlythe assistanceneededtomakethisdevelopmentfinanciallyfeasible.Assuch,anyprivatebenefits receivedbyadeveloperareincidentalanddonotoutweightheprimarypublicbenefits. Section5.ApprovalandAdoptionofthePlans. 5.01.ThePlans,aspresentedtotheCouncilonthisdate,includingwithoutlimitation thefindingsandstatementsofobjectivescontainedtherein,areherebyapproved,ratified, established,andadoptedandshallbeplacedonfileintheofficeoftheExecutiveDirectorofthe EDA. 5.02.ThestaffoftheCity,theCity'sadvisorsandlegalcounselareauthorizedand directedtoproceedwiththeimplementationofthePlansandtonegotiate,draft,prepareand presenttothisCouncilforitsconsiderationallfurtherplans,resolutions,documentsand contractsnecessaryforthispurpose. 5.03TheAuditorofWrightCountyisrequestedtocertifytheoriginalnettaxcapacity oftheDistrict,asdescribedinthePlans,andtocertifyineachyearthereaftertheamountby whichtheoriginalnettaxcapacityhasincreasedordecreased;andtheMonticelloEconomic DevelopmentAuthorityisauthorizedanddirectedtoforthwithtransmitthisrequesttothe CountyAuditorinsuchformandcontentastheAuditormayspecify,togetherwithalistofall propertieswithintheDistrict,forwhichbuildingpermitshavebeenissuedduringthe18months immediatelyprecedingtheadoptionofthisresolution. 5.04.TheEDADirectorisfurtherauthorizedanddirectedtofileacopyofthePlans withtheCommissionerofRevenueandtheOfficeoftheStateAuditorpursuanttoMinnesota Statutes469.175,Subd.4a. ADOPTEDBY theMonticelloCityCouncilthis22nd dayofAugust,2011. CITYOFMONTICELLO ___________________________ ClintHerbst,Mayor ATTEST: _____________________________ JeffO’Neill,CityAdministrator VOTINGINFAVOR: VOTINGINOPPOSITION: CERTIFICATION STATEOFMINNESOTA COUNTYOFWRIGHT Iherebycertifythattheforegoingisatrueandcorrectcopyofaresolutiondulypassed, adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingonAugust22, 2011,andrecordedinminutesofsaidmeeting. ____________________________________ JeffO’Neill,CityAdministrator NotaryPublic:_______________________________ Date:___________________________ (STAMP) EXHIBITA RESOLUTIONNO.2011-81 ThereasonsandfactssupportingthefindingsfortheadoptionoftheTaxIncrementFinancing PlanforTaxIncrementFinancingDistrictNo.1-39asrequiredpursuantto M.S.,Section 469.175,Subd.3 areasfollows: 1.FindingthattheTaxIncrementFinancingDistrictNo.1-39isaneconomicdevelopment districtasdefinedinM.S.,Section469.174,Subd.12. TaxIncrementFinancingDistrictNo.1-39isacontiguousgeographicareawithintheCity's CentralMonticelloRedevelopmentProjectNo.1,delineatedintheTIFPlan,forthe purposeoffinancingeconomicdevelopmentintheCitythroughtheuseoftaxincrement. TheDistrictisinthepublicinterestbecauseitwillfacilitateconstructionofan approximately40,000squarefootmanufacturingfacilitywhichwilldiscouragecommerce, industry,ormanufacturingfrommovingtheiroperationstoanotherstateormunicipality;it willincreaseemploymentinthestate,andpreserveandenhancethetaxbaseofthestate. 2.Findingthattheproposeddevelopment,intheopinionoftheCityCouncil,wouldnot reasonablybeexpectedtooccursolelythroughprivateinvestmentwithinthereasonably foreseeablefutureandthattheincreasedmarketvalueofthesitethatcouldreasonablybe expectedtooccurwithouttheuseoftaxincrementfinancingwouldbelessthantheincrease inthemarketvalueestimatedtoresultfromtheproposeddevelopmentaftersubtractingthe presentvalueoftheprojectedtaxincrementsforthemaximumdurationofTaxIncrement FinancingDistrictNo.1-39permittedbytheTIFPlan. Theproposeddevelopment,intheopinionoftheCity,wouldnotreasonablybeexpectedto occursolelythroughprivateinvestmentwithinthereasonablyforeseeablefuture:This findingissupportedbythefactthatthedevelopmentproposedinthisplanisa manufacturingfacilitythatmeetstheCity'sobjectivesforeconomicdevelopment.Poorsoil conditionsinthelocationhaverequiredextraordinarysiteimprovementsandutilitycosts resultinginhighlandacquisitioncoststoprospectiveprivatedevelopers.Thesehighcosts makedevelopmentofthefacility,inthislocation,infeasiblewithoutpublicassistance. Therefore,theCityandEDAhaveservedasthelanddeveloperandhavebuiltthe infrastructuretosupportprivatedevelopment.TheEDAwillsellthepropertyata subsidizedcost,usingtaxincrementsgeneratedbythedevelopmenttorepayitselfforthese coststhroughaninterfundloan,ratherthanpassingthesecostsontothedeveloper.The developerwasaskedforandprovidedaletterandaproformaasjustificationthatthe developerwouldnothavegoneforwardwithouttaxincrementassistance(seeattachmentin AppendixF). Theincreasedmarketvalueofthesitethatcouldreasonablybeexpectedtooccurwithout theuseoftaxincrementfinancingwouldbelessthantheincreaseinmarketvalueestimated toresultfromtheproposeddevelopmentaftersubtractingthepresentvalueoftheprojected taxincrementsforthemaximumdurationoftheTIFDistrictpermittedbytheTIFPlan:This siteispartofanewindustrialpark,withhighstart-upcostsincurredbytheEDAtoacquire andgradelandandinstallinfrastructure.IftheEDAattemptedtosellthelandataprice reflectingthevalueofallinfrastructurecostsincurred,itwouldbeunlikelytofindwilling buyers.Allparcelspreviouslysoldinthisindustrialparkalsorequestedtaxincrement assistanceandtheCityexpectsthatfuturesaleswillrequiresimilarincentives.Therefore, theCityreasonablydeterminesthatnootherdevelopmentofsimilarscopeisanticipatedon thissitewithoutsubstantiallysimilarassistancebeingprovidedtothedevelopment. Therefore,theCityconcludesasfollows: a.TheCity'sestimateoftheamountbywhichthemarketvalueoftheentireDistrictwill increasewithouttheuseoftaxincrementfinancingis$0. b.Iftheproposeddevelopmentoccurs,thetotalincreaseinmarketvaluewillbe$2,275,993 (seeAppendixDandFoftheTIFPlan) c.ThepresentvalueoftaxincrementsfromtheDistrictforthemaximumdurationofthe districtpermittedbytheTIFPlanisestimatedtobe$375,736(seeAppendixDandF oftheTIFPlan). d.Evenifsomedevelopmentotherthantheproposeddevelopmentweretooccur,the Councilfindsthatnoalternativewouldoccurthatwouldproduceamarketvalue increasegreaterthan$1,900,257(theamountinclauseblesstheamountinclausec) withouttaxincrementassistance. 3.FindingthattheTIFPlanforTaxIncrementFinancingDistrictNo.1-39conformstothe generalplanforthedevelopmentorredevelopmentofthemunicipalityasawhole. ThePlanningCommissionreviewedtheTIFPlanandfoundthattheTIFPlanconformsto thegeneraldevelopmentplanoftheCity. 4.FindingthattheTaxIncrementFinancingPlanforTaxIncrementFinancingDistrictNo.1- 39willaffordmaximumopportunity,consistentwiththesoundneedsoftheCityasawhole, forthedevelopmentofCentralMonticelloRedevelopmentProjectNo.1byprivate enterprise. TheprojecttobeassistedbytheDistrictwillresultinincreasedemploymentintheCityand theStateofMinnesota,increasedtaxbaseoftheState,andaddahighqualitydevelopment totheCity. As of August 17, 2011 Draft for Public Hearing Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 and the Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 1-39 (an economic development district) within Central Monticello Redevelopment Project No. 1 City of Monticello Economic Development Authority City of Monticello Wright County State of Minnesota Public Hearing: August 22, 2011 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Section 1 - Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 Foreword.............................................................1-1 Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 Subsection 2-1.Foreword...............................................2-1 Subsection 2-2.Statutory Authority........................................2-1 Subsection 2-3.Statement of Objectives...................................2-1 Subsection 2-4.Redevelopment Plan Overview ..............................2-1 Subsection 2-5.Description of Property in the District and Property To Be Acquired .2-2 Subsection 2-6.Classification of the District.................................2-2 Subsection 2-7.Duration and First Year of Tax Increment of the District ...........2-3 Subsection 2-8.Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ......2-3 Subsection 2-9.Sources of Revenue/Bonds to be Issued ......................2-4 Subsection 2-10.Uses of Funds ...........................................2-5 Subsection 2-11.Business Subsidies.......................................2-5 Subsection 2-12.County Road Costs .......................................2-6 Subsection 2-13.Estimated Impact on Other Taxing Jurisdictions.................2-6 Subsection 2-14.Supporting Documentation .................................2-8 Subsection 2-15.Definition of Tax Increment Revenues ........................2-8 Subsection 2-16.Modifications to the District.................................2-9 Subsection 2-17.Administrative Expenses ...................................2-9 Subsection 2-18.Limitation of Increment...................................2-10 Subsection 2-19.Use of Tax Increment....................................2-11 Subsection 2-20.Excess Increments......................................2-11 Subsection 2-21.Requirements for Agreements with the Developer ..............2-12 Subsection 2-22.Assessment Agreements.................................2-12 Subsection 2-23.Administration of the District...............................2-12 Subsection 2-24.Annual Disclosure Requirements ...........................2-12 Subsection 2-25.Reasonable Expectations .................................2-13 Subsection 2-26.Other Limitations on the Use of Tax Increment.................2-13 Subsection 2-27.Summary..............................................2-13 Appendix A Project Description......................................................A-1 Appendix B Map(s) of Central Monticello Redevelopment Project No. 1 and the District ..........B-1 Appendix C Description of Property to be Included in the District ............................C-1 Appendix D Estimated Cash Flow for the District........................................D-1 Appendix E Minnesota Business Assistance Form .......................................E-1 Appendix F Findings Including But/For Qualifications.....................................F-1 Monticello Economic Development Authority Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 1-1 Section 1 - Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 Foreword By resolution in October, 2007, pursuant to Minnesota Statutes ("M.S.") Section 469.094, Subd. 2, the City Council of the City of Monticello (the "City") transferred the control, authority and operation of any project defined in M.S. Section 469.174, Subd. 8 (relating to tax increment financing for such projects) and any other project or program administered by the Housing and Redevelopment Authority in and for the City of Monticello (the "HRA") from the HRA to the City of Monticello Economic Development Authority (the "EDA"). The EDA accepted responsibility for the control, authority and operation of each project and program of whatever nature herefore established or administered by the HRA. The following text represents a Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Central Monticello Redevelopment Project No. 1. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 1-39. For further information, a review of the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 is recommended. It is available from the Executive Director of the EDA at the City of Monticello. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Central Monticello Redevelopment Project No. 1. Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-1 Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 Subsection 2-1.Foreword The EDA, the City, staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 1-39 (the "District"), an economic development tax increment financing district, located in Central Monticello Redevelopment Project No. 1. Subsection 2-2.Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the EDA and City have certain statutory powers pursuant to M.S., Sections 469.090 to 469.1082, inclusive, as amended, and M.S., Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1. Subsection 2-3.Statement of Objectives The District currently consists of a portion of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate the construction of an approximately 40,000 square foot manufacturing facility in the City. Please see Appendix A for further District information. The EDA has not entered into an agreement but has described Suburban Manufacturing, Inc., or a related entity as the developer at the time of preparation of this TIF Plan. Development is likely to occur in the fall of 2011. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Central Monticello Redevelopment Project No. 1. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Central Monticello Redevelopment Project No. 1 and the District. Subsection 2-4.Redevelopment Plan Overview 1.Property to be Acquired - Property located within the District is owned by the City and is further described in this TIF Plan. 2.Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3.Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4.The EDA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-2 5.The City proposes both public and private infrastructure within the District. The proposed reuse of private property within the District will be for a manufacturing facility, and there will be continued operation of Central Monticello Redevelopment Project No. 1 after the capital improvements within Central Monticello Redevelopment Project No. 1 have been completed. Subsection 2-5.Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City currently owns the property to be included in the District. Subsection 2-6.Classification of the District The EDA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District to be established, is an economic development district pursuant to M.S., Section 469.174, Subd. 12 as defined below: "Economic development district" means a type of tax increment financing district which consists of any project, or portions of a project, which the authority finds to be in the public interest because: (1)it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or (2)it will result in increased employment in the state; or (3)it will result in preservation and enhancement of the tax base of the state. The District is in the public interest because it will meet the statutory requirement from clause 2. Pursuant to M.S., Section 469.176, Subd. 4c, revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (1)The manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (2)Warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3)Research and development related to the activities listed in items (1) or (2); (4)Telemarketing if that activity is the exclusive use of the property; (5)Tourism facilities; or (6)Qualified border retail facilities; (7)Space necessary for and related to the activities listed in items (1) to (6) In meeting the statutory criteria the EDA and City rely on the following facts and findings: The facilities in the District meet the conditions of Purposes 1, 2, and 7. The District is being created to assist in the construction of a manufacturing facility for Suburban Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-3 Manufacturing, Inc. The proposed facility will be used for manufacturing and related activities. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7.Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 8 years after receipt of the first increment by the EDA or City. The date of receipt by the City of the first tax increment is expected to be 2013. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2021, or when the TIF Plan is satisfied. If first increment is received in 2014, the term of the District will be 2022. The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8.Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2011 for taxes payable 2012. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2013) the amount by which the original value has increased or decreased as a result of: 1.Change in tax exempt status of property; 2.Reduction or enlargement of the geographic boundaries of the district; 3.Change due to adjustments, negotiated or court-ordered abatements; 4.Change in the use of the property and classification; 5.Change in state law governing class rates; or 6.Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2012, assuming the request for certification is made before June 30, 2012. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Central Monticello Redevelopment Project No. 1, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2013. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-4 Project Estimated Tax Capacity upon Completion (PTC)$53,250 Original Estimated Net Tax Capacity (ONTC)$7,730 Estimated Captured Tax Capacity (CTC)$45,520 Original Local Tax Rate1.14565 Pay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate)$52,150 Percent Retained by the EDA100% Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and determined that no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9.Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The EDA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by an interfund loan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment$467,600 Interest $7,400 TOTAL$475,000 The EDA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $391,100. Such bonds may be in the form of pay-as-you- go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-5 Subsection 2-10.Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of a manufacturing facility. The EDA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition$329,340 Site Improvements/Preparation$5,000 Utilities$5,000 Other Qualifying Costs$5,000 Administrative Costs (up to 10%)$46,760 PROJECT COST TOTAL$391,100 Interest $83,900 PROJECT AND INTEREST COSTS TOTAL$475,000 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Appendix D. Estimated capital and administrative costs listed above are subject to change among categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. Further, the EDA may spend up to 20 percent of the tax increments from the District for activities (described in the table above) located outside the boundaries of the District but within the boundaries of the Project (including administrative costs, which are considered to be spend outside the District), subject to all other terms and conditions of this TIF Plan. Subsection 2-11.Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2)Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-6 it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The EDA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-12.County Road Costs Pursuant to M.S., Section 469.175, Subd. 1a, the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the EDA or City within forty- five days of receipt of this TIF Plan. In the opinion of the EDA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The EDA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-7 Subsection 2-13.Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 2010/Pay 2011 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) Upon Completion Percent of CTC to Entity Total Wright County 126,611,79545,520 0.0360% City of Monticello16,429,52145,520 0.2771% Monticello ISD No. 88222,973,63845,520 0.1981% IMPACT ON TAX RATES Pay 2011 Extension Rates Percent of Total CTC Potential Taxes Wright County 0.39306034.31%45,520 17,892 City of Monticello0.46729040.79%45,520 21,271 Monticello ISD No. 8820.27029023.59%45,520 12,304 Other0.015010 1.31%45,520 683 Total 1.145650100.00%52,150 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2011 rate. The total net capacity for the entities listed above are based on actual Pay 2011 figures. The District will be certified under the actual Pay 2012 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $467,600; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is expected. The City currently contracts with the Wright County Sheriff’s Office for police services. The Wright County Sheriff's Office tracks all calls for service. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or require that the City expand its contract with Wright County. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The city does not expect the Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-8 development to require any new capital investments or hiring of additional staff. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute to sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $110,307; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $160,433; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-14.Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the EDA and City's findings: •Application for Business Assistance Financing. Subsection 2-15.Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1.Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Section 469.177; 2.The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-9 3.Principal and interest received on loans or other advances made by the Authority with tax increments; 4.Interest or other investment earnings on or from tax increments; 5.Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6.The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-16.Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1.Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd. 4(e); 2.Increase in amount of bonded indebtedness to be incurred; 3.A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4.Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5.Increase in the estimate of the cost of the District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6.Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S., Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If an economic development district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 12 must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The EDA or City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-17.Administrative Expenses In accordance with M.S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the EDA or City, other than: 1.Amounts paid for the purchase of land; 2.Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3.Relocation benefits paid to or services provided for persons residing or businesses located in the District; or 4.Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-10 pursuant to M.S., Section 469.178; or 5.Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits of M.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-18.Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-11 has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The EDA or City or a property owner must improve parcels within the District by approximately August 2015 and report such actions to the County Auditor. Subsection 2-19.Use of Tax Increment The EDA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1.To pay the principal of and interest on bonds issued to finance a project; 2.to finance, or otherwise pay the cost of redevelopment of the Central Monticello Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082; 3.To pay for project costs as identified in the budget set forth in the TIF Plan; 4.To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5.To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of Central Monticello Redevelopment Project No. 1 by a developer; 6.To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7.To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Wright County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for EDA or City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-20.Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1.Prepay any outstanding bonds; 2.Discharge the pledge of tax increment for any outstanding bonds; 3.Pay into an escrow account dedicated to the payment of any outstanding bonds; or Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-12 4.Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The EDA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the EDA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Central Monticello Redevelopment Project No. 1 or the District. Subsection 2-21.Requirements for Agreements with the Developer The EDA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances. The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the EDA or City concluded an agreement for the development of the property acquired and which provides recourse for the EDA or City should the development not be completed. Subsection 2-22.Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the EDA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. The EDA currently intends to enter into an assessment agreement with the developer. Subsection 2-23.Administration of the District Administration of the District will be handled by the Executive Director of the EDA. Subsection 2-24.Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. 5, 6, and 6b the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Monticello Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 2-13 Subsection 2-25.Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-26.Other Limitations on the Use of Tax Increment 1.General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of the Central Monticello Redevelopment Project No. 1 pursuant to M.S., Sections 469.090 to 469.1082. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2.Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3.Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. Subsection 2-27.Summary The City of Monticello Economic Development Authority is establishing the District to preserve and enhance the tax base, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697-8500. Appendix A-1 Appendix A Project Description The City will be selling 7.1 acres of land to a local company, Suburban Manufacturing, Inc. or a related entity, relocating from another site in the City for a better location to expand. The 40,000 square foot manufacturing facility will be built by the end of 2011. The assistance is in the form of a write down of land and site improvements. The value of the building and land is estimated at $2,700,000. The company will pay $0.65 per square foot of land for 4.4 acres at closing. An additional 2.7 acres will be conveyed to the company at no additional cost. The City originally financed land acquisition for the site through an interfund loan. The City also incurred debt to install infrastructure to the site. The tax increment will be used to reimburse the City for these obligations. Appendix B-1 Appendix B Map of Central Monticello Redevelopment Project No. 1 and the District Appendix C-1 Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Number Owner a portion of 155191000030*City of Monticello *This parcel will be subdivided and re-platted prior to request for certification of the TIF District. Appendix D-1 Appendix D Estimated Cash Flow for the District 7/ 1 3 / 2 0 1 1 Base Value Assumptions - Page 1 Su b u r b a n M a n u f a c t u r i n g - N o I n f l a t i o n Ci t y o f M o n t i c e l l o E D A , M i n n e s o t a Ma n u f a c t u r i n g P r o j e c t AS S U M P T I O N S A N D R A T E S Di s t r i c t T y p e : E c o n o m i c D e v e l o p m e n t Ma x i m u m / F r o z e n L o c a l T a x R a t e : 1 1 4 . 5 6 5 % P a y 2 0 1 1 Di s t r i c t N a m e / N u m b e r : 1 - 3 9 Cu r r e n t L o c a l T a x R a t e : ( U s e l e s s e r o f C u r r e n t o r M a x . ) 1 1 4 . 5 6 5 % P a y 2 0 1 1 Co u n t y D i s t r i c t # : T B D St a t e - w i d e T a x R a t e ( C o m m . / I n d . o n l y u s e d f o r t o t a l t a x e s ) 4 9 . 0 4 3 0 % P a y 2 0 1 1 Fi r s t Y e a r C o n s t r u c t i o n o r I n f l a t i o n o n V a l u e 2 0 1 1 Ma r k e t V a l u e T a x R a t e ( U s e d f o r t o t a l t a x e s ) IS D 8 8 2 0.21721%Pay 2011 Ex i s t i n g D i s t r i c t - S p e c i f y N o . Y e a r s R e m a i n i n g N A In f l a t i o n R a t e - E v e r y Y e a r : 0. 0 0 % P R O P E R T Y T A X C L A S S E S A N D C L A S S R A T E S : In t e r e s t R a t e : 4. 0 0 % Ex e m p t C l a s s R a t e ( E x e m p t ) 0 . 0 0 % Pr e s e n t V a l u e D a t e : 1- F e b - 1 2 Co m m e r c i a l I n d u s t r i a l P r e f e r r e d C l a s s R a t e ( C / I P r e f . ) Fi r s t P e r i o d E n d i n g 1 - A u g - 1 2 F i r s t $ 1 5 0 , 0 0 0 1 . 5 0 % Ta x Y e a r D i s t r i c t w a s C e r t i f i e d : Pa y 2 0 1 1 Ov e r $ 1 5 0 , 0 0 0 2 . 0 0 % Ca s h f l o w A s s u m e s F i r s t T a x I n c r e m e n t F o r D e v e l o p m e n t : 2 0 1 3 C o m m e r c i a l I n d u s t r i a l C l a s s R a t e ( C / I ) 2 . 0 0 % Ye a r s o f T a x I n c r e m e n t 9 R e n t a l H o u s i n g C l a s s R a t e ( R e n t a l ) 1 . 2 5 % Ass u m e s L a s t Y e a r o f T a x I n c r e m e n t 2 0 2 1 Aff o r d a b l e R e n t a l H o u s i n g C l a s s R a t e ( A f f . R e n t a l ) 0 . 7 5 % Fi s c a l D i s p a r i t i e s E l e c t i o n [ O u t s i d e ( A ) , I n s i d e ( B ) , o r N A ] NA No n - H o m e s t e a d R e s i d e n t i a l ( N o n - H R e s . ) 1 . 2 5 % In c r e m e n t a l o r T o t a l F i s c a l D i s p a r i t i e s In c r e m e n t a l Ho m e s t e a d R e s i d e n t a l C l a s s R a t e ( H m s t d . R e s . ) Fi s c a l D i s p a r i t i e s C o n t r i b u t i o n R a t i o 0 . 0 0 0 0 % P a y 2 0 1 1 F i r s t $ 5 0 0 , 0 0 0 1 . 0 0 % Fi s c a l D i s p a r i t i e s M e t r o - W i d e T a x R a t e 0 . 0 0 0 0 % P a y 2 0 1 1 O v e r $ 5 0 0 , 0 0 0 1 . 2 5 % Agr i c u l t u r a l N o n - H o m e s t e a d 1 . 0 0 % Pe r c e n t a g e T a x Y e a r P r o p e r t y C u r r e n t C l a s s A f t e r La n d B u i l d i n g T o t a l O f V a l u e U s e d O r i g i n a l O r i g i n a l T a x O r i g i n a l A f t e r C o n v e r s i o n Ma p # P I D O w n e r A d d r e s s M a r k e t V a l u e M a r k e t V a l u e M a r k e t V a l u e f o r D i s t r i c t M a r k e t V a l u e M a r k e t V a l u e C l a s s T a x C a p a c i t y C o n v e r s i o n O r i g . T a x Cap.Area/Phase 15 5 1 9 1 0 0 0 0 3 0 C i t y o f M o n t i c e l l o O t t e r C r e e k 7 1 6 , 1 0 0 0 7 1 6 , 1 0 0 5 9 % 4 2 4 , 0 0 7 P a y 2 0 1 1 E x e m p t - C / I P r e f . 7 , 7 3 0 71 6 , 1 0 0 0 7 1 6 , 1 0 0 42 4 , 0 0 7 0 7 , 7 3 0 No t e : 1. L a n d V a l u e h a s b e e n p r o r a t e d t o r e p r e s e n t 4 . 5 b u i l d a b l e a c r e s . B a s e V a l u e s n e e d t o b e r e f i n e d f o r t a x e s p a y a b l e 2 0 1 2 a n d m ay b e h i g h e r w h e n t h e C o u n t y a s s i g n s a v a l u e u p o n t r a n s f e r . B A S E V A L U E I N F O R M A T I O N ( O r i g i n a l T a x C a p a c i t y ) Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ M o n t i c e l l o \ H o u s i n g - E c o n o m i c - R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ T I F 1 - 3 9 \ T I F R u n s \ M o n t i c e l l o T I F R u n 7/ 1 3 / 2 0 1 1 Base Value Assumptions - Page 2 Su b u r b a n M a n u f a c t u r i n g - N o I n f l a t i o n Ci t y o f M o n t i c e l l o E D A , M i n n e s o t a Man u fac t u r ing Pro jec t Pr o p e r t y Pe r c e n t a g e P e r c e n t a g e P e r c e n t a g e P e r c e n t a g e F i r s t Y e a r To t a l M a r k e t V a l u e M a r k e t T a x P r o j e c t C o m p l e t e d C o m p l e t e d C o m p l e t e d C o m p l e t e d F u l l T a x e s Ar e a / P h a s e N e w U s e S q . F t . / U n i t s S q . F t . / U n i t s Val u e C l a s s T a x C a p a c i t y 20 1 1 2 0 1 2 2 0 1 3 2 0 1 4 P a y a b l e Ma n u f a c t u r i n g 4 5 , 0 0 0 6 0 2 , 7 0 0 , 0 0 0 C / I P r e f . 5 3 , 2 5 0 1 0 0 % 1 0 0 % 1 0 0 % 1 0 0 % 2 0 1 3 TO T A L 2, 7 0 0 , 0 0 0 5 3 , 2 5 0 Su b t o t a l R e s i d e n t i a l 0 0 0 Su b t o t a l C o m m e r c i a l / I n d . 4 5 , 0 0 0 2 , 7 0 0 , 0 0 0 5 3 , 2 5 0 No t e : 1. M a r k e t V a l u e i s b a s e d u p o n e s t i m a t e s f r o m D e v e l o p e r . To t a l F i s c a l L o c a l L o c a l F i s c a l S t a t e - w i d e M a r k e t Ta x D i s p a r i t i e s T a x P r o p e r t y Di s p a r i t i e s P r o p e r t y Val u e T o t a l T a x e s P e r Ne w U s e Ca p a c i t y Ta x C a p a c i t y Ca p a c i t y Ta x e s T a x e s T a x e s T a x e s T a x e s S q . F t . / U n i t Ma n u f a c t u r i n g 5 3 , 2 5 0 0 5 3 , 2 5 0 6 1 , 0 0 6 0 2 6 , 1 1 5 5 , 8 6 5 9 2 , 9 8 6 2 . 0 7 TO T A L 5 3 , 2 5 0 0 5 3 , 2 5 0 6 1 , 0 0 6 0 2 6 , 1 1 5 5 , 8 6 5 9 2 , 9 8 6 No t e : 1. T a x e s a n d t a x i n c r e m e n t w i l l v a r y s i g n f i c a n t l y f r o m y e a r t o y e a r d e p e n d i n g u p o n v a l u e s , r a t e s , s t a t e l a w a n d o t h e r f a c t o r s w h i c h c a n n o t b e p r e d i c t e d . To t a l P r o p e r t y T a x e s 9 2 , 9 8 6 Cu r r e n t M a r k e t V a l u e - E s t . 4 2 4 , 0 0 7 le s s S t a t e - w i d e T a x e s ( 2 6 , 1 1 5 ) Ne w M a r k e t V a l u e - E s t . 2 , 7 0 0 , 0 0 0 le s s F i s c a l D i s p . A d j . 0 D i f f e r e n c e 2 , 2 7 5 , 9 9 3 le s s M a r k e t V a l u e T a x e s ( 5 , 8 6 5 ) Pr e s e n t V a l u e o f T a x I n c r e m e n t 3 7 5 , 7 3 6 le s s B a s e V a l u e T a x e s ( 8 , 8 5 6 ) D i f f e r e n c e 1 , 9 0 0 , 2 5 7 An n u a l G r o s s T I F 5 2 , 1 5 0 Va l u e l i k e l y t o o c c u r w i t h o u t T a x I n c r e m e n t i s l e s s t h a n : 1, 9 0 0 , 2 5 7 W H A T I S E X C L U D E D F R O M T I F ? M A R K E T V A L U E B U T / F O R A N A L Y S I S TA X C A L C U L A T I O N S PR O J E C T I N F O R M A T I O N ( P r o j e c t T a x C a p a c i t y ) Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ M o n t i c e l l o \ H o u s i n g - E c o n o m i c - R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ T I F 1 - 3 9 \ T I F R u n s \ M o n t i c e l l o T I F R u n 7/ 1 3 / 2 0 1 1 Tax Increment Cashflow - Page 3 Su b u r b a n M a n u f a c t u r i n g - N o I n f l a t i o n Ci t y o f M o n t i c e l l o E D A , M i n n e s o t a Ma n u f a c t u r i n g P r o j e c t Ma n u f a c t u r i n g P r o j e c t Pr o j e c t O r i g i n a l F i s c a l C a p t u r e d L o c a l Ann u a l S e m i - A n n u a l S t a t e Adm i n . S e m i - A n n u a l S e m i - A n n u a l P E R I O D % o f Ta x T a x D i s p a r i t i e s T a x T a x G r o s s T a x G r o s s T a x Aud i t o r at N e t T a x P r e s e n t E N D I N G T a x P a y m e n t OT C C a p a c i t y Ca p a c i t y In c r e m e n t a l C a p a c i t y Ra t e I n c r e m e n t I n c r e m e n t 0 . 3 6 % 1 0 % I n c r e m e n t ValueYrs.YearDate - - - - 0 8 / 0 1 / 1 2 - - - - 0 2 / 0 1 / 1 3 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 2 , 0 3 4 0.5201308/01/13 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 4 3 , 6 3 6 1201302/01/14 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 6 4 , 8 1 5 1.5201408/01/14 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 8 5 , 5 7 9 2201402/01/15 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 1 0 5 , 9 3 5 2.5201508/01/15 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 1 2 5 , 8 9 2 3201502/01/16 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 1 4 5 , 4 5 8 3.5201608/01/16 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 1 6 4 , 6 4 0 4201602/01/17 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 1 8 3 , 4 4 6 4.5201708/01/17 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 0 1 , 8 8 3 5201702/01/18 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 1 9 , 9 5 9 5.5201808/01/18 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 3 7 , 6 8 0 6201802/01/19 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 5 5 , 0 5 4 6.5201908/01/19 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 7 2 , 0 8 7 7201902/01/20 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 2 8 8 , 7 8 7 7.5202008/01/20 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 3 0 5 , 1 5 8 8202002/01/21 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 2 6 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 3 2 1 , 2 0 9 8.5202108/01/21 10 0 % 5 3 , 2 5 0 ( 7 , 7 3 0 ) - 4 5 , 5 2 0 1 1 5 % 5 2 , 1 5 0 26 , 0 7 5 ( 9 4 ) ( 2 , 5 9 8 ) 2 3 , 3 8 3 3 3 6 , 9 4 5 9202102/01/22 T o t a l 46 9 , 3 4 9 ( 1 , 6 9 0 ) ( 4 6 , 7 6 6 ) 4 2 0 , 8 9 3 Pr e s e n t V a l u e F r o m 0 2 / 0 1 / 2 0 1 2 P r e s e n t V a l u e R a t e 4 . 0 0 % 3 7 5 , 7 3 6 ( 1 , 3 5 3 ) ( 3 7 , 4 3 8 ) 3 3 6 , 9 4 5 Pr e p a r e d b y E h l e r s & A s s o c i a t e s , I n c . - E s t i m a t e s O n l y N: \ M i n n s o t a \ M o n t i c e l l o \ H o u s i n g - E c o n o m i c - R e d e v e l o p m e n t \ T I F \ T I F D i s t r i c t s \ T I F 1 - 3 9 \ T I F R u n s \ M o n t i c e l l o T I F R u n Appendix E-1 Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFForm.htm for information and forms. Appendix F-1 Appendix F Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1.Finding that the Tax Increment Financing District No. 1-39 is an economic development district as defined in M.S., Section 469.174, Subd. 12. Tax Increment Financing District No. 1-39 is a contiguous geographic area within the City's Central Monticello Redevelopment Project No. 1, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate construction of an approximately 40,000 square foot manufacturing facility which will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; it will increase employment in the state, and preserve and enhance the tax base of the state. 2.Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 1-39 permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a manufacturing facility that meets the City's objectives for economic development. Poor soil conditions in the location have required extraordinary site improvements and utility costs resulting in high land acquisition for potential development. These high costs make development of the facility, in this location, infeasible without City assistance. The EDA is the land developer and is charging only enough to cover its costs plus interest to build the infrastructure to support this development. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance (see attachment in Appendix F). The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: This site is part of a new industrial park, with high start-up costs incurred by the EDA to acquire and grade land and install infrastructure. If the EDA sold the land at its true value, it would be unlikely to find willing buyers. All parcels previously sold in this industrial park also requested tax increment assistance and the City expects that future sales will require similar incentives. Therefore, the City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a.The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b.If the proposed development occurs, the total increase in market value will be $2,275,993 (see Appendix D and F of the TIF Plan) Appendix F-2 c.The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $375,736 (see Appendix D and F of the TIF Plan). d.Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $1,900,257 (the amount in clause b less the amount in clause c) without tax increment assistance. But-For Analysis Current Market Value424,007 New Market Value - Estimate2,700,000 Difference2,275,993 Present Value of Tax Increment375,736 Difference1,900,257 Value Likely to Occur Without TIF is Less Than: 1,900,257 3.Finding that the TIF Plan for Tax Increment Financing District No. 1-39 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4.Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 1-39 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Central Monticello Redevelopment Project No. 1 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and add a high quality development to the City. CityCouncilAgenda:8/22/11 1 8.ConsiderationofadoptingResolution#2011-79authorizingpreparationofplans andspecificationsforMCCNatatoriumImprovements,CityProjectNo.11C006 (RH,KB) A.REFERENCEANDBACKGROUND: TheCityCouncilisbeingaskedtoconsiderexpendingasignificantamountofmoneyto makemajorimprovementsintheNatatoriumattheMonticelloCommunityCenter. Earlyoninthehistoryofthecommunitycenter,themaintenancedepartmentrecognized thatthefacilitywasexperiencingdifficultieswiththeairqualityforthenatatorium.At thispoint,weembarkedonamulti-yearinvestigationtryingtoidentifytheproblemswith variousfacilityvendorsandtheirsuggestionsforimprovements.Wedidhavean Engineeringfirmdoasmallstudyoftheproblemsandidentifiedalargescalefix,upsize theairhandlingunit,aswellassmallerfixesthatcouldpotentiallyprovidethe improvementsthatwewanted.Someofthesesmallerrecommendationsthatwe implementedwere;changingwheretheairexhaustsoutofthebuilding,addingceiling fans,installingaUVsystem,addingamotorizeddampertohelpmaintainnegative pressure,testingandbalancingtheairhandlingequipment,andinstallingwindowshades. Whilewedidnotseethelargescaleimprovementsthatwehadhopedfor,theydid positivelyimpacttheoverallairqualityofthefacility. In2008orso,wehadwinddamagethattooksomeofthecoppersidingoffthebuilding onthewestside.Duringthebuildingrepairs,itwasnotedthatwehadsignificantwater damageunderthesiding.Thiswasaperplexingproblemwithmanyrecommended solutionstofixtheproblem.FortunatelyCouncilMemberPosusta,duetohis background,recommendedthatamorethoroughinvestigationbedonetogettotheroot oftheproblemandensurethatanyrepairsmadewouldresolvetheproblemsforthelong- term. WiththeCouncil’sauthorization,thefirmofWoldArchitectswasselectedtodothe buildinganalysis,makesolutionrecommendations,preparethedesignplans,assistwith thebidsfortheproject,andultimately,overseetheprojecttocompletion.Atthissame time,theCouncilidentifiedaBuildingCommitteetoreviewWold’sworkandbringany recommendationstothefullCouncilforapproval.MemberofthiscommitteeareGlen Posusta,LloydHilgart,JeffO’Neill,RonHackenmueller,BruceWestby,BobPaschke, TomKelly,BrianWeldonandKittyBaltos.Wehavemetanumberoftimestoreview therecommendationsandaskquestionstoclarifyinformationandultimatelydetermine therecommendationsthatthecommitteefeltshouldbebroughtforwardtotheCouncil. TheBuildingCommittee’srecommendationswerealsobroughttotheCommunityCenter AdvisoryBoardfortheirreviewandrecommendation. TherewereanumberofrecommendationsthatwereproposedbyWold.Attachedisa detailedspreadsheetidentifyingtheoptionsproposed,potentialcosttoimplement, Wold’srecommendationandtheBuildingCommittee’srecommendationwhichhasbeen color-coded. CityCouncilAgenda:8/22/11 2 Thestudyidentifiedthatourcurrentairhandlingsystemisunabletomaintainappropriate spacestaticpressureisthemostsignificantcontributingfactortotheexteriorwall failures.TherecommendationfromWoldistoreplacethepool’smechanicalsystemto correctthisproblem.Theyalsorecommendanautomationsystemfortheairhandling unitstoallowforincreasedefficiency.Bothoftheseitemshavebeenidentifiedfor potentialrebatesfromExcelEnergy.Othernotablerecommendations,theBuilding Committeeisrecommendingchangingtheexteriorenvelopefinishfromthecopper sidingtoanEFIS(exteriorinsulationandfinishsystem)material.Thiswillreducethe overallcostsyetprovideforanattractiveexteriorfinish.Also,theyarerecommending reducingthewindowwallonthesouthsideofthenatatoriumtoallowforreducedheat lossandabilitytomaintainappropriateroomtemperatures.Therewouldstillbea numberofwindowslookingtothesouthtomaintainthelightopenfeelingthatthepool currentlyhas,however,alargeportionofthewallwouldbetheEFISexterioras proposedforthebuildingenvelope. ManyoftheitemsbeingrecommendedwillprovideforrebatesfromExcelEnergyor CenterPointEnergyoradecreaseinenergyconsumptionoverallallowingforapayback onthecosttoimplement.TheCityandWoldareworkingwithbothfirmstodetermine whatrebateswecouldbeeligibletoreceive,however,mostofthemwouldbecustom programsthatrequiretheirengineerstoreviewplansbeforetheycandeterminetherebate amounts.Wedoknowmanyitemsrequirelessenergytorun.Thoseitemshavebeen identifiedonthespreadsheetattachedas(Ener)forreducedenergyneededwithnew system. Oneofthesub-contractorsforWoldwasUSAquatics.TheBuildingCommittee referencedairqualityissuesthatthepoolisexperiencingthatwouldnotbeimproved withchangestotheairhandlingequipmentalone.Forthisreason,improvementsare recommendedforchangestothepoolsorspasthatwillnotonlyhelpwithairquality,but alsocustomersatisfactionandreducedutilityandchemicalcosts.Forexample,we currentlyemptyandrefillthefamilyspaatleastonceperdayandtheadultspaatleast everyotherday.Thisequatestoalmost34,000gallonsofwaterpermonth.Thereisalso thetimerequiredforthemaintenancepersontoemptyandmanuallyrefillandtoadjust thechemicals.Thisisgenerallyatwoandahalfhourshutdownofthespaforour patrons.Whileoftentheworkontheadultspacanhappenovernight,thefamilyspa usuallyhastobetakenoutofserviceduringbusinesshours.ThenewUVsystemwould reducetheneedtoemptythesespasasoftenbybettercontrollingthecombined chloramines. TheMCCAdvisoryBoardwillberecommendingtotheCounciltoincludethesecond floorfitnesscenteradditionasapartofthisimprovementpackage.Inthecommunity centerCIP,capitalimprovementplan,theyhadidentified$250,000additiontobedonein 2012.Atthetime,theyweremostinterestedineitherasplashparkorafitnesscenter addition.TheParkandTrailsurveydoneearlierthisyear,showedthattheonecriticism ofthecommunitycenteristhatitistoocrowded.Theovercrowdingcomplaintscome mostlyfromthefitnesscenterusers.Whatisbeingproposedisansecondfloorbeadded overthewestendofthemainhallway,immediatelyadjacenttothecurrentfitnesscenter. Suchanadditionwouldgainalittleover1,000squarefeet. CityCouncilAgenda:8/22/11 3 Onefinalrecommendationthathasnotbeenclearlydefinedittheneedtomakeexterior andinteriorrepairsinthewestendvestibule.Thatareahassufferedfromwaterdamage duetoitsproximitytothepoolarea,however,thetruerootoftheproblemhasnotbeen identified.WoldArchitectswillmakeamorecompletepresentationonthisparticular areafortheCouncilatthemeeting. Thebenefitsthatwillbeseeniftherecommendationsmadeare: Resolvethebasicproblemwiththeairhandlingandthebuildingenvelope. Increasedenergyefficiencieswhichwillresultinlowerutilityand chemicalcostsintothefuture. Rebatesavailablefromutilitycompaniesbasedoncreatingamoreenergy efficientfacility. Increasedcustomercomfortandtheresultinggood“talk”aboutthe communitycenter. Adownsidewouldbe: Theoverallexpense.Theseequipmentreplacementsorrepairswould mostlikelyhavebeennecessaryatsomepointinthefuturebasedonthe limitedlifeofequipment,theyarejusthappeningearlierthananticipated. Thearchitecturalchangestothefacility;changingthecoppertoEFISand thelossofthewindowsinthepoolarea.Theyarehighlyrecognizedin thecommunity. A1.BudgetImpact:TherecommendationsfromtheBuildingCommitteeandthe MCCAdvisoryBoardthatwouldincludetheoptiontoaddthesecondfloor fitnesscenter,whichisprojectedat$1,385,700.Thisfigurewouldhavea1.2 multipliertocovertheprojectcostsforWoldArchitects,bringingtheprojected totalto$1,662,840. Ifthesecondfloorfitnesscenteradditionwerenottobeincludedintheproject, theprojectedcostswouldbe$1,195,700or$1,434,840afterthecostsforWold Architectsareaddedin. TomKellyhashadtheresponsibilityofdeterminingthebestwaytopayforthe improvementsneeded.Heisproposingthatthecommunitycenter’sreservesof approximately$900,000beusedtopayforalargepartoftheimprovements.He hasidentifiedahighertaxlevyforthecommunitycenterfor2012by$400,000 andwilltransfer$500,000fromtheLiquorstorefundtocovertheexpensesofthe improvements. A2.StaffWorkloadImpact:TheChiefBuildingofficialandtheMaintenance Supervisorwouldbethemostheavilyimpactedintheirregularreviewofthe workbeingaccomplished.Thepublicimpactwouldbeapproximatelytwo weeks,hopefullyinMay2012,wherethepoolwillbeshutdownforaperiodto removeandreinstallthenewairhandlingequipment.Thisshutdownwillbe carefullyscheduledsoastonotimpactourgroupuseschedule. CityCouncilAgenda:8/22/11 4 B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2011-79approvingPreparationofPlansand SpecificationsbyWoldArchitectsand,inaddition,toaccepttheStudyReport andtoapprovetherecommendationsoftheBuildingCommitteeandtheMCC AdvisoryBoardforNatatoriumimprovementstoincludethesecondfloorfitness centeraddition,foraproposedtotalamountof$1,662,840. 2.MotiontoadoptResolution#2011-79approvingPreparationofPlansand SpecificationsbyWoldArchitectsand,inaddition,toaccepttheStudyReport andtoapprovetherecommendationsoftheBuildingCommitteeandtheMCC AdvisoryBoardforNatatoriumimprovementstonotincludethesecondfloor fitnesscenteraddition,foraproposedtotalamountof$1,434,840. 3.MotiontoadoptResolution#2011-79approvingPreparationofPlansand SpecificationsbyWoldArchitectsand,inaddition,toaccepttheStudyReport andtoapproveadifferentcombinationofimprovementsbasedonCityCouncil discussion. 4.Motiontodenythisitematthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1or#2.TheBuildingCommitteehasnotmadea definitiverecommendationonthesecondfloorfitnesscenteraddition,however,the CommunityCenterAdvisoryBoardisstronglyrecommendingtheinclusionofthe secondfloorbuildingadditionalongwiththeotherimprovementsrecommendedbythe BuildingCommittee. IftheCouncilshoulddecidetotabletheitem,itmayimpacttheprojectschedulemoving therepairsbacktoSeptember2012.Whilethehopeistomakethenecessaryrepairsas soonaspossible,thenecessityofmovingtheprojectbackwouldnotcreatesignificant problemsfortheCommunityCenteranditsusers. Althoughitisunfortunatetohavetobemakingtheseimprovements,itwillresolvethe problemsfromconstructionandwillresultincostefficienciesandamorepleasant environment. D.SUPPORTINGDATA: Resolution#2011-79 Spreadsheetofoptionsidentified,potentialcosts,andBuildingCommittee’s recommendationstoCouncil StudyReportforNatatoriumImprovementssubmittedbyWoldArchitects CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2011-79 AUTHORIZINGPREPARATIONOFPLANSANDSPECIFICATIONS MONTICELLOCOMMUNITYCENTERNATATORIUMIMPROVEMENTS CITYPROJECTNO.11C006 WHEREAS,onJanuary24,2011,theMonticelloCityCouncilauthorizedtheMCCNatatoriumsub- committeetosubmitaRequestforProposaltoselectarchitecturalfirmstostudyandidentifythe problemsinthenatatoriumarea,identifyareastoberepaired,recommenddesignimprovements,and assistwithidentifyingpotentialfundingsources;and WHEREAS,onApril11,2011,theMonticelloCityCouncilacceptedquotesfromthreearchitectural firmsandawardedacontracttoWoldArchitectsfortheMCCNatatoriumstudy;and WHEREAS,itwasdetermined,uponcompletionofthestudybyWoldArchitects,thattheMonticello CommunityCenterwouldbenefitfromimprovementsinanumberofareasincludingtheairhandling unitforthepoolareaandstructuralrepairsontheinteriorandexteriorofthebuilding;and WHEREAS,onAugust22,2011,theMonticelloCityCouncilwaspresentedwiththeresultsofthe studyandadescriptionofthemethodologyandrecommendationsforMCCNatatoriumimprovements. NOWTHEREFORE,BEITRESOLVED bytheCityCounciloftheCityofMonticello,Minnesota asfollows: 1.TheCityCouncilacceptsthestudyascompleteandhassufficientlymetstudyrequirements. 2.Saidimprovementsarenecessary,cost-effective,andfeasibleasdetailedinthereport submittedbyWoldArchitects. 3.Itisadvisable,expedientandnecessarythatsaidimprovementsasdescribedandrecommended bytheMCCNatatoriumsub-committeebeconstructed,andthesameareherebyorderedmade. 4.Theimprovementsdescribedinsaidstudyareherebydesignatedandshallbeknownasthe MCCNatatoriumImprovements,CityProjectNo.11C006. 5.WoldArchitectsisherebydirectedtopreparefinalplansandspecificationsforsaid improvements. ADOPTEDBY theMonticelloCityCouncilthis22nd dayofAugust,2011. CITYOFMONTICELLO ___________________________________ ClintHerbst,Mayor ATTEST: ____________________________________ JeffO’Neill,CityAdministrator OPTIONS Item #DESCRIPTION INFORMATION PRICE PRIORITY WOLD 1 New Pool Air Handling Unit Improve Space Pressure Issues, includes automation system for this unit.$490,000 Yes Pg 18 X New Variable Speed Exhaust Fan Repairs, but not replace the AHU system $70,000 No Pg 18 2 Repair/Replace deteriorating Mechanical materials Oxidation of Materials, piping, sprinkler heads, and ferrous material. Equipment, piping, hangers, etc. $30,000 Yes Pg 18 X 3 Increase Heating Capacity Heating Systems up to 10% efficiency improvements $80,000 Yes Pg 18 (Ener)X 4 Upgrade Building Automation System Building Automation system, allow for remote access, more immediate fixes. This would be for outside the natatorium facility. Rebates available $35,000 Yes Pg 19 X 5 Duct Work system improved Ventilation System Opt. 1, Reuse the existing supply ductwork, but improve diffuser type and config.$25,000 Yes Pg 19 X Opt. 2 Provide new duct or/diffusers with optimal distribution strategy $100,000 No Pg 19 Opt. 3 Reconfigure return air to add to return grille lower to more effectively capture pool off-gassing $20,000 Yes Pg 19 X Modify Return ductwork to more effectively capture air from west end of pool $23,000 No Pg 19 6 Mechanical Room Corrosion Opt. 1 Seal Mechanical Room $8,500 Yes Pg 19 X Opt. 2 Add Mechanical Room Ventilation $20,000 Yes Pg 19 Ener^X 7 Power Factor Correction Install Power Factor Correction Capacitor $12,000 Yes Pg 19 (Ener)X 8 Testing, Balancing and Commissioning Testing and Balancing Natatorium $10,500 Yes Pg 20 (Ener)X Commission, natatorium $6,000 No Pg 20 (Ener) Commissioning Entire Building $50,000 Yes Pg 20 (Ener)X 9 Life Cycle Replacements Water Heater Replacement for domestic water heating system $31,000 Yes Pg 20 X 10 Add UV Disinfection to Spas $20,000/ spa $40,000 Yes Pg 21 (chem)X 11 Add Web Based Chemical control system One control for all three bodies of water. $4,000 No Pg 21 X 12 Reduce Bio Film, increase water and air quality Add Sphagnum Moss to pools/Spa $7,000 Yes Pg 21 /yr X 13 Increase size of Sand filters for Spas Upgrade the filtration on Spas to handle small body of water $10,000 Yes Pg 22 X Install regenerative media filters on spas $80,000 No Pg 22 X 14 Correct the low alkalinity of the Water in place of existing acid feed system CO2 Feed System $2,500 Yes Pg 22 X 15 Change Spas Adult spa become family spa and is enlarged, currently family spa becomes adult spa remains same size $67,000 No Pg 23 X 16 Install Variable Frequency Drive, Pool/Spa Controlling water flow using discarge valves on $13,500 Yes Pg 24 (Ener)X 17 Waterslide safety Slide retrofit/ remodel $60,000 No Pg 24 X Rplace Water Slide $200,000 No Pg 24 18 Demolition to correct existing problems Removal of existing wall system down to CMU $23,000 Yes Pg 25 X Parapet Reconstruction $22,500 Yes Pg 25 X Impermeable Vapor Barrier Installed $19,300 Yes Pg 25 X Masonry Core Filled Insulation $4,400 Yes Pg 26 (Ener)X 19 Roof Insulaton Reroofing with 4" R-22 Code $130,500 No Pg 26 Reroofing with 6" R-33 Insulation $140,700 No Pg 26 Reroofing with 8" R-44 Insulation $150,800 No Pg 26 (Ener) 20 Exterior Cladding Reinstallation of Existing Copper Shingles $135,000 No Pg 27 X Installation of New Copper Shingles $208,000 No Pg 27 Installation of New Corrugated Metal Panel $98,600 No Pg 27 Installtion of New Rain Screen Metal Panel $210,000 No Pg 28 Installation of New EFIS $62,000 Yes Pg 28 Installation of New Brick Cavity Wall System $157,000 No Pg 29 21 Decrease Solar Heat Gain Photochromic Glass $147,000 No Pg 29 22 Reduce Area of Glass Installation of New CMU Back up Wall $13,800 Yes Pg 30 X Intallation of New Wall Cladding $36,800 Yes Pg 30 X Installation of New Translucent Clerestories $28,800 Yes Pg 30 X Installtaion of Two New Storefront Doorways $3,600 Yes Pg 30 X Installation of Four New Windows $9,500 Yes Pg 30 X Integral Sunshading Device $14,400 No Pg 30 External Sunshading device $108,000 No Pg 31 23 Window Recaulking Remove existing joint sealants $7,000 Yes Pg 31 X 24 Corroded Stucture and Metals establish allowance Repair Corroded structure $20,000 Yes Pg 32 X Replacement of Corroded Doors and Frames $14,000 No Pg 32 X Replacement of slide landing and guardrails $25,000 Yes Pg 32 X Add 1 Second floor addition for fitness center $190,000 Maybe Pg 32 Add 2 Fix West Vestibule Water damage in west vestibule $35,000 Yes Yes $1,195,700 $1,195,700 Unknown Second Floor Fitness Center Addition $190,000 $1,195,700 $1,385,700 $1,434,840 $1,662,840 designers and researchers for public environments 305 Saint Peter Street Saint Paul, MN 55102 Joel Dunning // AIA, LEED AP Partner-In-Charge jdunning@woldae.com tel 651 227 7773 fax 651 223 5646 Monticello Community Center Natatorium Improvements Study Report Draft June 29, 2011 !" ! #"$" % &’ " ()*+!,"- ! 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Theimmediateexpensesrequestedforfundingatthistimeamountto$15,000plustax andmaintenancefees. HISTORY TheCityofMonticellooriginallypurchasedLaserfichesoftwareandlicensesin2005 fromCrabtreeCompaniesatacostofapproximately$12,500.Ascannerwasalso purchasedatthattimefor$4,600andhasproducedover1millionscansthroughmid 2009.Thisscannerisnolongerusablewiththenewertechnologythathasevolvedover thelast5years. Ourpreviousdeputyclerkscannedmanyofthepermanenthistoricalrecordsthrough mid-2009,whichnowresideinLaserfiche.Thesearestoredinaformatthatconformsto theStateofMinnesotarecordretentionlawsforpublicentities.Fortheoriginal implementationprocess,theformerdeputyclerkwasbasicallytheonlypersontrainedin Laserficheandshehandledalloftherecordsprocessing.Someemployeeshaveonly accesstoviewandretrieverecords,whichisdoneonaregularbasis.Ourplanisto expandthebaseofemployeestrainedforscanningandenteringrecordsintoLaserfiche withtheDeputyClerk/ProjectCoordinatorinchargeofrecordsmanagement. AnultimategoalistohavethemajorityofinternalstaffusingtheLaserfichesystemfor retrievalofrecordsandmakepublicrecordsandinformationaccessibletoexternalusers throughthecity’swebsite.Laserfichewilleventuallyserveastheprimarysourceforthe city’srecordsandshouldreplaceallofourpermanentpaperfiles.Oncestaffistrained, recordsmanagementwillbecomepartofthejobprocesswhenrecords/filesarecreatedor receivedbytheCity. BACKGROUND RecordsManagementisdefinedasthepracticeofmaintainingrecordsforan organizationfromthetimetheyarecreateduptotheireventualdisposal.MNstatelaw andpracticesspecifytherequirementsformanagementofpublicentityrecords.TheCity adoptedtheStaterecordsretentionschedulein2007andthatnowservesasourguidefor theproperstorageanddisposalofcityrecords. CityCouncilAgenda:08/22/11 2 Laserfichewasdesignedtostorerecordsinelectronicformatthusmakingiteasierand moreefficienttoretrievehistoricalrecordsandsignificantlyreducetheamountof physicalstoragespacerequiredforrecordsandfiling.Theoriginalpurchaseof LaserfichewasfromCrabtreeCompanies,whohasbeeninbusinessforover30years andserves8countiesand80citiesinMinnesota.70%ofmunicipalitiesintheUnited StatesselectedLaserficheforelectronicstorageofrecords. Laserfichehasabuiltinsecuritysystem,whichallowsstafftolimitaccesstothose individualswhohaveproperauthorizedaccess.Staffcanalsocontrolthelevelofaccess, whichallowsthepublicaccessofCityrecordsthroughtheCity’swebsite.OurSharp printershavetheabilitytoserveasauxiliaryscannersfortheLaserfichesystem,and LaserfichecanalsobeintegratedwithothercitysystemssuchasSpringbrookand PermitWorks.OurimplementationplanincludesapilotprojectinvolvingAccounts Payable(Springbrook)andbuildingpermits(PermitWorks). HavingLaserfichewillbelikehavingourowninternal“googlesearch”functionatfor findingCityrecords.Laserficheutilizeseitherkeywordtextsearchormetadatafield searchforfindingandretrievingrecords.Fulllicenseuserscanquicklyscandocuments usinganumberoffeaturesinLaserficheandcanbuildtemplatesthatwouldmatch commondocumentstoastandardstorageformat,suchasmeetingminutesandagendas. CrabtreeCompaniesprovideswebinarandonlinetrainingatnocosttoitsclients.There wouldbeanhourlychargeforon-sitetrainingduringimplementationofthenewmodules andequipment(budgetedfor10hours). BENEFITSOF IMPLEMENTATIONOFTHE ULTIMATE PLAN SomeofthebenefitsofFullLaserficheimplementationcanbesummarizedasfollows: MeetsStateofMinnesotalawsandstandardsforelectronicrecordsretention– electronicrecordsareacceptedasareplacementforpaperoriginals,takingupless space,storedinasecuremanner,andprovidingeasyaccessandretrieval. TheCityinvestedabout$17,000inLaserfichewhenitwaspurchasedin2005– thissystemisstillviableexceptforthescannerwhichwouldneedtobereplaced. ShouldtheCityimplementpartsofLaserficheovertime,suchaspurchasingthe AvanteversionofLaserficheinthefuture,wewouldreceiveacreditforthe modulespreviouslypurchased. Laserficheistherecordretentionsoftwareofchoice–ofthosemunicipalities acrossthecountrythatmovedtoelectronicrecordsstorage,70%selected Laserfiche.CrabtreeCompanieshasbeenintheLaserfichebusinessforover30 yearsandwasthetopchoiceofmanygovernmentsandbusinesses. CitycopierswillbeintegratedwithLaserfichetoserveasauxiliaryscanners– thiswillbehelpfulinencouragingdepartmentsoutsideofcityhalltoparticipate inmanagingtheirrecordselectronically.Citystaffhasutilizedthelargeformat printer/scannerforscanningmapstobestoredelectronically;theintentistomove themintoLaserfiche.Therewillbemanybenefitstothisincludingquickerand easieraccesstomapsonemployees’computerdesktops,noneedtostorehuge CityCouncilAgenda:08/22/11 3 quantitiesofpapermaps,allmapsizescanbescannedandstoredwiththis machine,andeventualaccessforoutsideusersthroughthecitywebsite. LaserfichetrainingcanbeprovidedatreasonableornocostthroughCrabtree Companies.ItshouldbenotedthatCrabtreeCompanieshasputinasignificant numberofhoursatnoextrachargetohelpusgetbackontrackwithrecords managementplanning,includingon-sitemeetings,severalconferencecalls,anda reviewofrecordsineachdepartment.ClayBaerfromCrabtreeofferedtoattend theCouncilmeetingtodemonstratesomefeaturesofLaserfiche. LaserfichehasaWeblinksmodulethatwillallowustolinkLaserficheandthe citywebsite,thuscreatinganinteractiveaccesstorecordsandinformationforcity residentsandotherexternalusers.Someexampleswillbedemonstratedduring theCouncilmeeting. Laserfichecanprovidemappingcapabilitiesforbothinternalandexternalusers utilizingourGISsystem.ThisGeolinkfeaturehasbeenacollaborativeeffort betweenCrabtreeandWSB.SincetheCityisalreadyaGISclientofWSB,the costtointegratethesystemsshouldbeminimal.Externaluserssuchascity residents,theSheriffandFireDepartments,andothercustomerscouldutilize mappingthroughinteractivewebaccessonthecitywebsite.We’lldemonstrate thisattheCouncilmeeting. CONCEPT PLAN OVERVIEW ThesearethestepsthathavebeenidentifiedtofullyimplementLaserficheasarecords managementsystemfortheCity. Activitiesthatwillbeconductedoritemspurchasedwiththisimmediaterequestare: RecordsRetention–establishaworkgroupwithrepresentativesfromcity departmentstobetrainedinLaserficheandrecordsmanagement;ataminimum wouldneedtopurchaseandimplementthreemodules,Quickfields,BarCode Validation,Real-timeLookup,pluspurchaseadditionallicensesandascanner (i)Identifyfilestobestoredelectronically(basedonadoptedretention scheduleanddepartmentalrequest) (ii)EstablishstoragehierarchyinLaserfiche (iii)Identifymethodforrecordscanningthatwilluseeitherkeywordtext searchormetadatafields (iv)Createtemplatesfordocumentsthatarerepetitiveinnature Usersearches–makeLaserficheavailabletoallcityemployeesthatreference cityrecordsandprovidenecessarytraining;themoduleslistedunderRecords Retention(above)wouldprovideemployeeaccesstoLaserfiche Copierintegration–trainkeyusersonuseofcopiersasanauxiliaryscanning sourceforLaserfiche;mayneedsomeminorconfigurationchangesoncurrent printers Largeformatcopier/printer/scanner–continueusingthismachineforscanning mapswhichwillbestoredelectronicallyinLaserfiche;withupgradetoAvante versionandWeblinkswecangiveaccesstomapsforexternalusersthroughour citywebsite. CityCouncilAgenda:08/22/11 4 Systemsintegration–identifyprocessesinexistingsoftware(i.e.Springbrook, PermitWorks)thatcanbeprogrammedtointegratedirectlywithLaserfichefor recordsstorage;theremaybeminimalcostsforprogramming Activitiesthatwillbeconductedoritemsrecommendedforfuturefundingare: Website–purchaseandimplementWeblinksmoduleforinterfacebetweencity websiteandLaserfiche;eventuallyrecordsinLaserfichewillbemadeaccessible tocityresidentsandotherexternaluserswithupgradetoAvanteversion GIS–workwithWSBtoimplementGeolinkinterfacebetweencity’sGISsystem andLaserfiche;employWeblinksfeaturetoactivateinteractivewebaccess betweenGISandLaserfiche Workflow–ifupgradedtoAvanteversion,coulddeploythismodulefor establishingworkflowproceduresthatcanbeusedbetweenalldepartmentsto enhancetheuseofLaserfiche SUMMARY Thereareanumberofreasonssupportingimplementationofthistechnologyatthistime. Improvescapacitytoefficientlycomplywiththedatapracticesact.TheState ofMinnesotahaslawsregardingtheretention,storageanddestructionofrecords forpublicentities.TheStatehasadoptedprovisionstoallowfortheuseof electronicrecordsmanagement,whichprovidesasimplifiedmeanstosavetime andspaceinvolvedwithprocessingandretrievingrecords. Enhanceserviceresponsivenessandaccuracy.WiththeuseofLaserfiche,city staffhastheopportunitytomanagerecordsmoreefficientlyandtimely,plus makerecordsavailabletothepublic.Laserfichehasanumberoffeaturesbuilt intoittoassistuserswithdocumenthandlingsuchasbatchscanning,merging, useofbarcodes,markrecognition,auto-rotate,andblankpagedeletion,allof whichallowstafftomanagerecordsmoreefficiently. Thistechnologyhasbeenimplementedsuccessfullybyothers,providinga frameworkandtechniquesthatwillassistinthetransition.Manycities throughoutthestatehaveinvestedinLaserfiche,twoofwhichincludeStMichael andBuffalo.BothStMichaelandBuffalohavelinkedtheirLaserficherecordsto theirwebsitetoallowaccesstorecordsforexternalusers. A1.BudgetImpact:FullimplementationoftheLaserfischesystemprovidingallof thebenefitsnotedpreviouslyisnotproposedbystaffatthistime.The incrementalstepproposedatthistimeis$15,000plustaxandmaintenance.This includesadditionalLaserfichemodulesandlicenses,aheavydutyscanner, consultanttrainingtime,andtemporaryhelp. IfweweretopurchasetheAvanteversionofLaserfichewithadditionalmodules forfullintegration,expenditureswouldamountto$62,135includingcreditsfor tradeinofcurrentsoftware.Thefullintegrationpriceincludestwoscannersfor variousdepartmentstoworksimultaneously. CityCouncilAgenda:08/22/11 5 Staffmayneedtorequestthehiringofsometemporaryhelptocatchupwiththe pastrecords,whichcouldhavesomebudgetimpactthatisunknownatthistime. TheCitycurrentlybudgetsforannualmaintenancefeesonsoftwareand equipmentandwouldcontinuetodosoforeachoftheproposedpurchases.With fullintegration,annualmaintenancewouldbeanticipatedtorunabout$12,000; withpartialimplementationthosecostswouldbereduced. ThereisalsoaleaseoptionofferedbyCrabtreeCompaniesatthecostof $1650.37permonthplustaxfor5years.Thiscostcoversthefullintegrationof theLaserfichesystemandincludesthefirstyearofmaintenancefees.With interestthisaddsuptoalmost$100,000soitisnotfeltthatthisisafeasible option. Nomatterwhichoptionisauthorized,thefundswouldcomefromtheCapital RevolvingFund. A2.StaffWorkloadImpact:Citystaffwouldbeinvolvedintrainingand implementingLaserficheforrecordsmanagement.Theimmediatefocusforkey staffwillbetotrainontheLaserfichesystemandlearnthebestmethodsto managecurrentandnewlycreatedrecords.Oncethistaskiscompletedstaffwill addresstheworkloadrequiredtocatchuponthehugebacklogofpaperfilesthat needtobeclassified,stored,scannedand/ordestroyed,whichcouldresultinthe needforsometemporaryhelp. B.ALTERNATIVEACTIONS: 1.MotiontoapprovetheconceptplanforLaserficheand,asanincrementalstep, authorizepurchaseofsoftware,licenses,trainingandascannerattheestimated amountof$15,000for2011fromCrabtreeCompanieswithfundsfromthe CapitalRevolvingFund. AdditionalitemsrequiredforfullintegrationofLaserfiche,totaling$50,000, wouldbereviewedwithfutureyearbudgets. 2.MotiontoapprovethefullintegrationconceptplanforLaserficheandauthorize purchaseoftheAvantesoftwareandassociatedmodules,licenses,training,and equipmentintheamountof$62,135plustaxandmaintenancefor2011from CrabtreeCompanieswithfundsfromtheCapitalRevolvingFund. 3.MotiontodenypurchasesofLaserfichesoftwareandequipmentatthistimeand directstaffaccordingly. C.STAFFRECOMMENDATION: CityCouncilAgenda:08/22/11 6 CitystaffrecommendsAlternative#1.Theincrementalpurchasetoexpandour Laserfichesystemisproposedbystaffatthistime.Thiswillenableustogetourrecords managementprocessingbackontrackutilizingLaserficheforscanning,storageand accessofrecords. AlthoughfullintegrationofthesystemunderAlternative#2wouldallowformost efficientimmediateuseofthesystembythelargestnumberofusersandofferthemost flexibleandcompletetrainingoptions,itmaybepreferredtospreadthecostover multipleyears. D.SUPPORTINGDATA: CrabtreePriceQuotation Laserfichebudget–incrementalpurchase Laserfichechart Laserficheproductinformation Picturesofcityrecordstobeprocessed Item #Description Quantity Price Extended 1 LF Avante Server for MS SQL with Workflow Software 1 $5,000 $5,000 2 LF Full User Client with Workflow, WebAccess, Advance Audit Trail 50 $700 $35,000 3 LF Starter Public Portal (WEBLINK) 10 connections 1 $15,000 $15,000 4 Quickfields 1 $595 $595 5 QF Bar Code & Validation (Bar Code, 2D Bar Code, Pattern Matching 1 $1,695 $1,695 6 QF Real Time Lookup & Validation (Real Time, Pattern Matching)1 $595 $595 7 QF Zone OCR & Validation (Zone OCR, Pattern Matching)1 $2,795 $2,795 8 Scan Connect - (one needed per scanner)2 $165 $330 Software Subtotal $61,010 Item Description Quantity Price Extended 1 LF Avante Server for MS SQL with Workflow LSAP billed annually 1 $1,000 $1,000 2 LF Full User, Workflow ,WebAccess, Advance Audit Trail LSAP billed annually 50 $140 $7,000 3 LF Starter Public Portal (WEBLINK) 10 connections LSAP billed annually 1 $3,000 $3,000 4 Quickfields LSAP billed annually 1 $120 $120 5 QF Bar Code & Validation LSAP billed annually 1 $340 $340 6 QF Real Time Lookup & Validation LSAP billed annually 1 $120 $120 7 QF Zone OCR & Validation LSAP billed annually 1 $560 $560 8 Scan Connect LSAP billed annually 2 $33 $66 Support Subtotal $12,206 1st year of LSAP's Must be purchased Item Description Quantity Price Extended 1 Software Total 1 $61,010 $61,010 2 Support Total 1 $12,206 $12,206 3 Installation, Consulting, End User and Administrator Training *10 $155 $1,550 4 Canon DR-7550c color scanner 1 $4,995 $4,995 5 Canon DR-6010c color scanner 1 $3,280 $3,280 Credit for trade in of your current Laserfiche software 1 ($8,700)($8,700) Credit for trade in of your current Laserfiche software pro rated LSAP 1 TBD TBD sales tax is not included Project Total $74,341 * This labor is limited to 10 hours. More time can be purchased if necessary to help you create workflow rules. Server Hardware Not Included Sales tax (if applicable) are additional on hardware and software. Payment A deposit of 50% of the total quote and a signed sales order is due when authorization and acceptance of the project is signed. The balance of the payment id due once the software and hardware have been installed and training has begun. Payments can also be made using Visa, MasterCard or American Express. Lease Payment Option $1,650.37 per month plus tax Lease 5 years term with 1 year LSAP * This lease structure offers the lessee the option to purchase the equipment and software at the end of the lease term for $1.00. Customers that want to conserve their cash resources and credit line favor this lease structure. * Customer may lease additional years of LSAP if requested. LASERFICHEBUDGETPROPOSAL–INCREMENTALOPTION Multi-yearbudget current2011Future(2012-2014) Licenses/Software Laserfiche Annualmtc $8419 $1450 Add’llicenses(5) annualmtc $2850 $570 Weblinks Annualmtc $7995 $1590 Add’llicenses(4) Annualmtc $1540 $450 Quickfields Annualmtc $595 $120 Avante Annualmtc $5000 $1000 BarCodeValid. Annualmtc $1695 $340 Workflow,Web Access,AuditTrail (50users) Annualmtc $35,000 $7000 Real-timeLookup Annualmtc $595 $120 Equipment Scanner (outdated-nolonger usable) $4600 Scanner7550c 1license Annualmtc $4995 $165 $33 Scanner5010c 1license Annualmtc $3280 $165 $33 Personnel(temp)$20/hrX100hrs $2000 Training (inclinitialset-up)$2500 $139X10 hrs $1390 Setting the standard in local government document and records management, Laserfiche helps thousands of government agencies around the world meet the challenges of 21st-century public service. Consider your growing workload. Responding to demands for instant access to public records. Keeping those records secure. Maintaining archives of maps and drawings, and providing access to engineers and emergency personnel. As you face these demands in the Clerk's Office, in Public Works, in your Police and Fire Departments— throughout local government—what is the impact of paper- and microforms-based records management on budget, productivity and quality of service? Protect documents, streamline agenda creation and provide efficient access to public records Document Management for Local Government Meet the Challenges of Great Public Service Run SmarterSM Learn More Inside Enforce Consistent Records Procedures with DoD-5015.2-certified Tools Find Information Faster Protect Documents and Records Simplify Agenda Processes Improve Access to Public Records Streamline Integration and Deployment Universal Accessibility and Long-Term Records Preservation Department Files Finance Human Resources Public Records Laserfiche for Tax Accessors Laserfiche for Courts Laserfiche for Special Districts Laserfiche for Municipal Clerks Capture documents from: Scanners Digital Audio &Video Fax E-mail Electronic Documents Multifunction Peripherals A/R A/P Applications Credentials and Certification Department Reports Case Documents Supporting Notes (Audio, Photos, Video) Agendas Ordinances E-size Drawings, Blueprints and Maps Tax Assessment Forms City Officials The Press The Public Increase public access to information with secure, dynamic Web publication. Simplify retention schedule management with DoD-5015.2- certified tools. Local Government State Government Augment revenue through GIS integration for faster, more accurate billing and tax collection. Judges and Court Officials Government Agencies Attorneys Lower the cost of information sharing and trial preparation by copying case documents to CDs. Repair Crews First Responders Enhance first response and homeland security initiatives by linking supporting documents to GIS and other applications. Challenges of the Status Quo Hours spent responding to public information requests Time-consuming document retrieval from records rooms and off-site storage Administering complex records retention, accession and destruction procedures Manual compilation, approval and distribution processes for agendas Challenges of preserving public records for the future Difficulty controlling access to and distribution of sensitive records The Laserfiche®Potential Easy, secure Web publishing to save time and labor Instant document retrieval to improve productivity Simplified, consistently enforced records policies organization-wide Cost-effective agenda creation and distribution Secure, reliable archiving on CDs, DVDs and other media Enhanced records protection and security Laserfiche, Serving the Public Servant “I received a request yesterday from the state retirement board for all the payroll records on an employee who started here in 1977. We had to send a clerk up to the attic. It was about two hours’ work. If we'd had it on Laserfiche, the clerk could have tapped a few keys and handed it to me in less than a minute.” Leonard Verrastro, Town Clerk, Mamaroneck, New York Consider the Cost of Providing Maps and Drawings to Engineers What are the physical storage costs for large-format maps and drawings? How much staff time is lost searching for documents in file rooms or off-site storage? How long must engineers and first responders wait for mission-critical plans? What are the risks to historical drawings from repetitive handling? What are the cumulative costs in terms of budget, staff hours and quality of public service? Now Consider Meeting Those Demands with Laserfiche Scan historical maps and import AutoCAD®files into a secure digital archive. Index maps and drawings with customizable templates for precision retrieval. Give engineers instant access while reducing paper reproduction costs and alleviating the retrieval burden on planning department staff. Field personnel access critical information on-site from wireless-enabled laptops. This is just one example of how Laserfiche software helps improve public service. Designed for rapid deployment, scalability and seamless integration, Laserfiche delivers solutions for today’s local government. Local government agencies and departments use high- speed scanners to capture budgets, maps, employee records, the municipal code, police reports—documents of varying types and sizes—into single or multiple Laserfiche databases. You can also import text files and other electronic documents, including e-mail and digital audio and video files, with automated import tools or simple drag-and-drop actions. Comprehensive security measures safeguard your digital archive with individualized protective measures for spe- cific departments. Original documents can be removed or destroyed. Digital backups can be stored safely off-site. Authorized personnel then search and retrieve docu- ments instantly with Laserfiche’s Intelligent Search. Users view, print and e-mail documents from their desktops. Documents may be archived to CD or DVD, or dynamically posted to your intranet or the Internet without HTML coding. Laserfiche at Work in Local Government “What I like most is that crews can start fixing problems immedi- ately, without waiting for somebody to go to a remote office and look for documentation. Before Laserfiche, [locator] cards went missing, often just as they were needed to repair a major disaster such as a flood.” John Whelan, Supervisor, Works & Emergency Services Staff, Toronto, Canada “We were about 20% automated when I began here. We had an antiquated retrieval system that took a very long time— nowhere near the level of service I wanted to give our citizens. With Laserfiche, we are 99% automated.” Valerie Burrowes, City Clerk, Sacramento, California Protect Documents and Records Maintaining, moving and protecting paper and micro- form records are expensive tasks. Disaster and theft threaten the integrity of archives. Photocopying for off- site storage is labor-intensive and costly. Digital media also raise concerns: Will evolving technol- ogy allow future generations access to public records? Digital archiving with Laserfiche resolves these concerns while facilitating disaster recovery planning. Store entire document repositories on durable, royalty-free CDs or DVDs. Built-in search and viewing capabilities promote more effective operations continuity in the event of a disaster. Maintain future accessibility with non-proprietary ASCIIand TIFF file storage formats. Easily reconstruct destroyed or damaged archives from digital backups. Safeguard information from the repository level to that of individual words. Real-World Benefits from the Clerk’s Office to Special Districts Enforce Records Procedures with DoD-5015.2-certified Tools Records management for local government must be many things. Reliable. Unfailing. Secure, but accessible to authorized staff. Comprehensive, but sensitive to departmental demands. Designed to help you achieve those goals in the real world, the Laserfiche Records Management Edition provides dependable, total life- cycle digital records management. Enforce consistent records policies for both physical and digitized records. Manage records and documents, including e-mail and digital video and audio, from a single application. Easily implement your file plan with a customizable folder structure. Assure proper filing with mandatory metadata acquisi- tion and automated extraction of e-mail metadata. Streamline retention and disposition configuration. Find Information Faster Laserfiche Intelligent Search retrieves documents instantly, allowing staff to find and distribute informa- tion with unparalleled speed. With the flexibility of full-text and customizable index searches, Laserfiche allows on-demand access to documents. Locate documents instantly with Laserfiche Intelligent Search. Unlockyourdocuments’contentswithfull-text searches. Combine searches for precision document retreival. Easily generate disposition eligibility and other reports with specialized records management searches. Find documents using fuzzy search capabilities even if you are unsure of the search term’s spelling. Retrieve image-only documents, such as maps and drawings, with customizable index field searches. Streamline Integration and Deployment Scalability allows local governments to budget for departmental installations and then expand organization-wide, minimizing implementation risks. Support for multiple servers allows administrators to configure separate repositories for individual departments while maintaining a controlled environment. Repositories can reside in separate physical locations and be protected with individualized security measures. The Laserfiche administration console is fully integrated with the Microsoft®Management Console (MMC) environment, with complete support for snap-in tools. Open architecture simplifies integration with standard applications, such as GIS and others used in your Finance, Human Resources, Public Works and Public Safety departments. Non-proprietary file storage formats maintain future accessibility. Configure access and feature rights by users and groups. The system leverages COM (Component Object Model) technology to facilitate customization. Support for industry-standard Microsoft®SQL ServerTM and Oracle database platformssimplifies integration and delivers maximum scalability. 3 45 6 7 8 9 J J J J J J J BASELINE FOOTHILL AVE HARRISON AVE BONITA AVE ARROW HWY GA R EY A V E TO W NE A V E MO U N T A I N A VE IN D I A N H I L L B L VD MI L L S A V E MO N T E V I S T A A VE TR A V E R S S T 6TH ST SCRIPPS AVE MIRAMAR AVE RADCLIFF DR DA N BU R Y R D GR A N D A VE FO R BE S A V E BO N N I E B A R B A VE CHAMP PARK SHELTON PARK OAK PARK CEMETARY EL MONTE PARK MEMORIAL PARK VAIL PARK LA PUERTA SPORT PARK HUNTS PARK LEWIS PARK CAMILLA PARK “Our Laserfiche document management system was working so well for City Hall we decided to try it in the Police Department. It took half an hour to get Laserfiche working with the law enforcement CAD/RMS system. Next up for us, the public will be able to access all Laserfiche documents relating to a property by accessing a map and clicking on a land parcel.” Steve Senkle, Information Systems Manager, Claremont, California Improve Access to Public Records As the demand grows for instant access to public information, local government needs an efficient, cost- effective Internet solution. Laserfiche WebLinkTM is an e-government solution that provides a secure way to publish documents on an intranet or the Internet. Multiple departments, remote offices and the general public can search budget information, public safety guidelines and other documents without increasing your staff’s workload. Efficiently publish documents to the Web without HTML coding. Deliver improved access to public records while saving time and resources. Provide security for digital archives—records manage- ment staff maintain complete access control. Easily customize WebLink to match the look and feel of your existing Web site. Platform independence provides widespread access via standard Web browsers. Simplify Agenda Processes Labor-intensive planning of regular meetings for councils and other bodies impacts personnel in every department. Last-minute changes, gathering approvals and preparing minutes consume staff hours and create massive paper-handling and storage burdens.Laserfiche Agenda Manager™ automates agenda compilation and approvals workflow for efficient agenda building, faster distribution and easier posting of agendas and support- ing materials to the Web. Ease the agenda compilation process with automatic notifications to contributors. Speed approvals with automated document routing. Reduce costs and relieve the paper burden with effi- cient electronic distribution. Improve public service with instant Web availability for citizens and the media. Simplify the preparation and distribution of minutes. Your Next Step Call (800) 985-8533 to arrange a demonstration. Also e-mail info@laserfiche.com or visit www.laserfiche.com/gov for more product details or to request your free Laserfiche demo CD. 3545 Long Beach Blvd. Long Beach, CA 90807 USA Tel: (562) 988-1688 Fax: (562) 988-1886 www.laserfiche.com/gov info@laserfiche.com About Laserfiche Solutions A resource for over 21,000 organizations since 1987, Laserfiche creates elegant document management solutions that help organizations run smarter. Dedication to customer-driven innovations has built a suite of products and services that address organization-wide business problems from executive, records management, information technology and end-user perspectives. Laserfiche manages mission-critical information in local, state and federal agencies; financial services firms; healthcare organizations; educational institutions; and other public- and private-sector organizations around the world. © 2005 Compulink Management Center, Inc. All rights reserved. Laserfiche is a division of Compulink Management Center, Inc. Laserfiche is a registered trademark of Compulink Management Center, Inc. All other trademarks are properties of their respective companies. Due to continuing product development, prod- uct specifications and capabilities are subject to change without notice. Printed in the USA. Item No. 7227. Run SmarterSM Laserfiche Product Suite Laserfiche Document Management Platform These core products help you organize, protect and retrieve information. Laserfiche UnitedTM and Laserfiche TeamTM Laserfiche Records Management EditionTM Laserfiche Web AccessTM Document and Information Capture These tools bring paper and electronic documents into your digital system. Laserfiche Quick FieldsTM Laserfiche Import AgentTM Laserfiche SnapshotTM Document Distribution Provide secure, efficient document access to users across the office and around the world. Laserfiche WebLinkTM Laserfiche PlusTM Laserfiche E-mail Plug-inTM Laserfiche COLDTM Business Process Management Streamline document-centered processes and track activity for regulatory compliance. Laserfiche Workflow SuiteTM Laserfiche Agenda ManagerTM Laserfiche Audit TrailTM Integration and Customization Tools and packaged solutions facilitate image enabling and back-end integrations. Laserfiche Integrator’s ToolkitTM Integration ExpressTM Integration Express-GISTM Software Assurance Manage change and protect your investment. Laserfiche Software Assurance Plans (LSAPTM) About Laserfiche CityCouncilAgenda:08/22/2011 1 10.Considerationofapprovingequipmentspecificationsandauthorizingpurchaseofa tractorformowingandsnowremovalbasedonstatecontractpricing (TM,BP) A.REFERENCEANDBACKGROUND: Councilisaskedtoconsiderapprovingequipmentandcomponentspecificationsand authorizingpurchaseofsaidequipmentandcomponents.AttheFebruary28,2011 SpecialCouncilMeetingheldatthePublicWorksfacility,PublicWorksaskedcouncilto reviewandconsiderreplacinga1987Fordditchmowingtractor.Thisgavecouncila chancetoviewthetractorandaskquestionsaboutitsuseandoperations.Afterviewing anddiscussingdifferentoptions,amotionwasapprovedforstafftosolicitquotesfor contractmowingandpurchaseorleaseofequipment,withthepossibilityoftradingin twotractorsforonewithatractorequippedtodomowingandsnowremoval.Bydoing thiswewouldreducethefleetbyonetractorandbemoreefficient.Thesetwooptions weretothenbebroughtbacktoCouncilforconsideration. Twoquoteswerereceivedforcontractmowing,onewasfor$75.00peracreandthe otherwas$60.00peracre.PublicWorksestimatesthecosttomowin-housewith purchasinganewmowingtractortobe$43.16peracre.AsdirectedbyCouncil,we discussedthepossibilityoftradingintwotractorswithstaff,andfeltthiswouldbeavery goodoption. Onceayear,theStateofMinnesotaopensabidprocesstoallvendersacrossthestateto bidonvehicles,equipment,andmanyothersuppliestooperatethestate.TheEquipment Sectionisresponsiblefordepartmentequipmentpurchasing,whichincludesdevelopment ofdetailedtechnicalspecifications.Procurementcontractsarepreparedtonotonlyserve MN/DOTinternalcustomersbutalsootherunitsoflocalgovernmentthroughout Minnesota.Thissimplifiestheprocessforusandsavesthecitymoney.Wehavechosen TruemanWeltersofBuffalo,DiamondMowersofSiouxFalls,SD,andSt.Joseph EquipmentofElkRiverasourvendersfromtheStateBidContract. PublicWorksisnowrequestingauthorizationtoreplacethe1987Ford4610mowing tractorand1999HewHollandsnowplowtractorwitha2011Case-IHFarmallUtractor. ThistractorwillincludearearandsidemountDiamondflailmower,aVernigfront mountedreversibleVsnowplowandaSchulterearmounted3-pointsnowblower.This willgiveusthecapabilityofbeingmoreefficientbyusingonlyonetractoryearround. TruemanWeltershasagreedtotakethe1987Ford4610mowingtractorandthe1999 NewHollandtractorasatrade-inallowanceat$21,350.Wewillalsobeadvertisingthe tractorstothepubliconsealedbidspriortothetradeindateasthismaygiveusan opportunityforabetterprice.Wealwayshavetheoptiontotradeinthetractors. ThefrontmountedVernigreversibleVsnowplowwillbepurchasedfromSt.Joseph Equipment.ThisplowwillbemountedbyPublicWorkstosaveoncosts.Thefrontand CityCouncilAgenda:08/22/2011 2 sidemountedmowerswillbepurchasedfromDiamondMowersandmountedbythem. BoththesecompaniesarevendorsontheStateBidContract. ThepricefromTruemanWeltersforthetractorandsnowblowerwithtrade-insis $33,074.18,thepricefromDiamondMowersforthemoweris$23,626.86andtheprice fromSt.JosephEquipmentforthesnowplowis$4,363.71.Thetotalpriceforthe completepackagewithtaxincludedis$61,064.75. A1.BudgetImpact:Inpreparationforthispurchase,theStreetDepartmenthas budgetedappropriatefundsof$80,000,whichcomeoutoftheCapitalRevolving Fund.Weareunderbudgetduetothefactweareaskingtotradeintwotractors. Whenfirstbudgetedtheintentionwastojustreplacethe1987Fordmowing tractor. A2.StaffWorkloadImpact:Thestaffworkloadimpactofthisnewunitwillbevery positive.Whatweareaccomplishingbytradingintwotractorsisreducingthe fleetthereforereducingmaintenancecostsandutilizingatractoryeararound. B.ALTERNATIVEACTIONS: 1.Motiontoapprovethespecificationsandauthorizethesepurchasesforagrand totalof$61,064.75: Case-IHFarmallUtractorwithaSchulte3-pointsnowblowerfrom TruemanWeltersfor$52,385.40andtradeinthe1987Ford4610tractor andthe1999NewHollandtractorforadiscountof$21,350.00withtotal costofthetractorwithtaxat$33,169.08;Citywouldreservetheoptionto advertiseonsealedbidspriortothetrade-indatefortheopportunityfora betterprice. FlailmowersfromDiamondMowersfor$23,626.86 ReversibleVsnowplowfromSt.JosephEquipmentfor$4,363.71 2.Motiontodenythereplacementofthe1987Ford4610tractorandthe1999New Hollandtractoratthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1fortheCityCounciltoauthorizethereplacement ofthe1987Ford4610tractorandthe1999NewHollandtractor,asoutlined,atatotal costtotheCityofMonticelloof$61,064.75.Aspreviouslyindicated,wehaveplacedan amountof$80,000.00inthebudgetforthispurchase.Thistractorisessentialtothe operationsofthePublicWorksDepartment.Bypurchasingthistractorwewillreducethe fleetbyonetractorandreducethecostofmaintenanceinthedepartment.Wedefinitely willincreasetheefficiencyofthePublicWorks. CityCouncilAgenda:08/22/2011 3 D.SUPPORTINGDATA: StateBidsforallequipment Equipmentspecsandpictures CostestimateforstreetROWmowing MowingQuote EquipmentReplacementPolicy Photosofoldtractorstobetradedinorsoldonbids F:\ADMIN\WORDPROC\POLICIES\VEHICLE REPLACEMENT POLICY PROPOSAL 2005.DOCX: 2/10/05 - Page 1 of 2 - VEHICLE REPLACEMENT POLICY PROPOSAL PUBLIC WORKS DEPARTMENT January 21, 2005 (Revised November 19, 2008) The purpose of the guidelines is to create a means by which the department can efficiently evaluate the replacement of the department’s equipment. The goal is to maintain all equipment in good/safe/efficient operating condition and replace equipment before it becomes a detriment or safety problem for the city. PROPOSAL: All equipment will be evaluated at least two years before a possible replacement year. This will allow us to plan ahead for future budgets and will give the city the flexibility of de laying replacement of equipment if necessary. Pickups (2 ton, 3/4 ton and 1 tons) and light duty trucks are evaluated after 8 years of service for expected replacement at age 10 to 12 years. This includes a vehicle inspection by the city=s mechanic or a reliable dealership, a trade in value of the vehicle is determined, and an estimate of how much longer the vehicle will perform efficient service for the city. This will help decide when it will be most cost efficient to replace the vehicle. The vehicle will be inspected and evaluated every two years after the initial eight year inspection. Other smaller motorized equipment such as tractors, skid steers, lawn mowers, etc. will be assessed after 5 years and every two years after the initial inspection, with expected replacement at age 7 to 9 years. Attachments will be assessed annually as to usage, wear, safety, and performance. If any piece of equipment is found to have possible safety issues or excessive miles/hour associated with operation, that piece of equipment will have first priority for replacement. Each year at the departmental budget meetings the replacement schedule will be re-evaluated and shared with other departments. The equipment replacement priority list will be determined at that time. Additional new equipment purchases will be done when it has been shown that departmental inefficiencies are occurring due to lack of equipment or that the city’s public service needs are being negatively affected. Compact 4 x 4 pickups commonly used for off road construction inspection will be evaluated after 6 years with possible replacement at 8 years. The city will attempt to sell all vehicles and equipment outright through a bid process once trade-in values are known. Projected growth may require keeping better trade-ins for backup use or transportation service. F:\ADMIN\WORDPROC\POLICIES\VEHICLE REPLACEMENT POLICY PROPOSAL 2005.DOCX: 2/10/05 - Page 2 of 2 - Large dump trucks: evaluated at 10 years of age for replacement at 12 or 14 years. Small loaders (non skid steer) and street sweepers: evaluated at 8 years of age with replacement at 10 to 12 years. Large loaders: evaluated at 10 years of age with replacement at 12 to 16 years. Motor grader: continue to buy late model used; evaluate at 18 years of age with replacement at 20 to 22 years. All trailers: inspect yearly with replacement as needed. Specialized equipment: Inspect yearly with replacement as needed. Vac-Con sewer cleaner: Evaluate yearly with estimated replacement at 12 - 16 years as well as other wastewater treatment plant heavy duty rolling stock such as trucks, trailers and applicators.