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City Council Agenda Packet 07-28-2014AGENDA(revised) REGULARMEETING–MONTICELLOCITYCOUNCIL Monday,July28,2014–7p.m. MississippiRoom,MonticelloCommunityCenter Mayor:ClintHerbst CouncilMembers:LloydHilgart,TomPerrault,GlenPosusta,BrianStumpf 1.CalltoOrderandPledgeofAllegiance 2A.ApprovalofMinutes–July14,2014SpecialMeeting 2B.ApprovalofMinutes–July14,2014RegularMeeting 3.Considerationofaddingitemstotheagenda 4.Citizencomments,publicserviceannouncements A.CitizenComments: B.PublicServiceAnnouncements: 1)2014-15MonticelloRoyaltyintroductions 2)MovieinthePark“Gravity”(8/1) 3)CityCandidateFiling(7/29)andPrimaryElection(8/12) 5.ConsentAgenda: A.ConsiderationofapprovingpaymentofbillsforJuly28th B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments C.ConsiderationofadoptingResolution#2014-071toacceptcontributionsfrom Schlenner,Wenner&Co.andOmniVision&Learning/UptownEyecaretoMCC forMovieintheParkevents D.Considerationofapprovingapplicationsfora2-daytemporaryliquorlicenseand acharitablegamblingpermitfortheChurchofStHenry’sfallfestivalon September20-21,2014 E.Considerationofapprovinganapplicationforacharitablegamblingpermitfora raffletobeconductedbyWrightCounty/WestMetroWhitetailsonSeptember7, 2014 F.ConsiderationofadoptingResolution#2014-073statingintenttoreimbursefrom bondproceedsforPhosphorousReductionandOtherImprovementstothe WastewaterTreatmentFacilityandSystem,CityProjectNo.ZZPHOS SPECIALMEETING 6p.m.-Bus TransitWorkshop G.ConsiderationofadoptingResolution#2014-074authorizingsubmissionofa PointSourceImplementationGrant(PSIG)applicationforPhosphorous ReductionandOtherImprovementsfortheWastewaterTreatmentFacilityand System,CityProjectNo.ZZPHOS H.ConsiderationofadoptingResolution#2014-075authorizingpreparationofplans andspecificationsforPhosphorousReductionandOtherImprovementstothe WastewaterTreatmentFacilityandSystem,CityProjectNo.ZZPHOS I.ConsiderationofacceptingproposalandawardingcontracttoWrightHennepin Servicesfor2014StreetLightingImprovements(West7th StreetbetweenElmSt andCR39),CityProjectNo.14C001 J.ConsiderationofadoptingResolution#2014-072approvingLot1,Block1,90th StreetThirdAddition (PID155-185-001010),ataxforfeitparcel,tobereleased forpublicsale/auction K.ConsiderationofadoptingResolution#2014-076amendingthedelegationof authoritytopaycertainclaimstothepositionofFinanceDirectorandinhis/her absencetothepositionofAssistantFinanceDirectorasestablishedinResolution #2013-089 L.ConsiderationofchangingDMVHoursofOperationsonSaturdays M.ConsiderationofreleasingFNMGeneralManagerBrianEstremfromhiscontract effectiveJuly31,2014 6.Considerationofitemsremovedfromtheconsentagendafordiscussion 7.RegularAgenda: A.Considerationofaccepting2014DNROutdoorRecreationGrantaward, authorizingappraisals,andapprovingacorrespondinglocalmatchforaPhase VIIIacquisitionattheBertramChainofLakesRegionalPark B.Considerationofauthorizingappraisalsandapprovingacorrespondinglocal matchforaPhaseVIIacquisitionattheBertramChainofLakesRegionalPark C.Considerationofapprovingone-yearextensiontothetermsoftheagreement governingpurchaseofKrutzigpropertyatLot2,Block1,JeffersonCommons1st Addition D.ConsiderationofauthorizingsubmissionofRequestforProposaltotheCityof Annandaleforprovisionofbroadbandservices E.ConsiderationofreleasingFNMGeneralManagerBrianEstremfromhiscontract effectiveJuly31st (Thisitemismovedtoconsent#5M) F.ConsiderationofofferingacontracttocandidateLanceAddisonforgeneral managementservicesforFiberNet (Thisitemisremoved–see#5M) G.ConsiderationofadoptingResolution#2014-070approvingtheJointPowers AgreementforpublictransitservicethroughtheWrightCountyArea Transportation(WCAT)JointPowersBoardorauthorizinganotheroptionforcity busservice 8.Addeditems 9.Adjournment City Council Special Meeting Minutes – July 14, 2014 Page 1 MINUTES SPECIAL WORKSHOP MEETING – MONTICELLO CITY COUNCIL Monday, July 14, 2014 – 5:45 p.m. Mississippi Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None Others: Wayne Oberg, Jeff O’Neill 1. Call to Order Mayor Herbst called the special meeting to order at 5:46 p.m. 2. Purpose of Workshop: Review of 2013 Audit Wayne Oberg gave a short presentation about some of the items covered in the 2013 audit. He reviewed some of the 2012 audit adjustments leading into 2013. Regarding the investment horizon, he noted that our investment values go down when interest rates go up. He showed a comparison between 2011 and 2012 investment portfolios. Lloyd Hilgart asked if Wayne Oberg had sold some of the investments, and Wayne explained that he had brought the long term investments down to reduce the risk, but none were sold at a loss. Wayne Oberg noted that there will be some additional changes in investments during the next year. Wayne Oberg discussed the prior period adjustments in 2012 and 2013. There was an adjustment made in 2012 for developer escrow deposits in the amount of about $600,000. For 2013, there was an adjustment made for special assessments to bring them into balance with the county. The adjustment was in the amount of $3,282,241; however, this did not affect the city cash balances as this was a change in deferred revenues with an offset to assets. Wayne Oberg explained that there was a change in accounting principles that affected the city’s financial statements. This was a write-off of unamortized deferred charges related to the bond issue for FiberNet in the amount of about $430,000. This had been shown as an asset, which was determined should be considered an expense under the new GASB Statement No. 65. Wayne Oberg noted some fund reclassifications from 2013:  Cemetery Fund changed from Enterprise to Special Revenue  Deputy Registrar Fund changed from Special Revenue to Enterprise  Parks & Pathway Fund changed from Special Revenue to Capital Project  Water and Sewage Access Funds closed to respective utility funds  Capital Revolving Fund closed to Capital Projects and Internal Services  Created Internal Service Funds for equipment purchases and IT services management City Council Special Meeting Minutes – July 14, 2014 Page 2 3. Adjournment TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 6:09 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5-0. Recorder: Catherine M. Shuman ____ Approved: Attest: __________________________ City Administrator City Council Minutes – July 14, 2014 Page 1 MINUTES REGULAR MEETING – MONTICELLO CITY COUNCIL Monday, July 14, 2014 – 7 p.m. Mississippi Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None 1. Call to Order and Pledge of Allegiance Mayor Herbst called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was recited. 2A. Approval of Minutes – June 23, 2014 Special Meeting BRIAN STUMPF MOVED TO ACCEPT THE JUNE 23, 2014 SPECIAL MEETING MINUTES AS PRESENTED. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0. 2B. Approval of Minutes – June 23, 2014 Regular Meeting GLEN POSUSTA MOVED TO ACCEPT THE JUNE 23, 2014 REGULAR MEETING MINUTES AS PRESENTED. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5-0. 3. Consideration of adding items to the agenda  Otter Creek park parking (Glen Posusta)  Mowing compliance (Glen Posusta)  FNM update (Jeff O’Neill) 4. Citizen comments, public service announcements A. Citizen Comments: None. B. Public Service Announcements: 1) Movie in the Park (7/26 & 8/1) – Rachel Leonard announced there are two upcoming shows for Movie in the Park. “Lego Movie” will be shown on Saturday, July 26th and “Gravity” is rescheduled to Friday, August 1st. The Lego Movie is sponsored by Omni Vision and Gravity is sponsored by the Monticello Times. Rachel answered questions about the costs for the movies. 2) Fishing Clinics (7/19 & 8/2) – Rachel Leonard announced that the DNR MinnAqua Fishing Clinics will be offered at Bertram Chain of Lakes Regional Park from 9 to 11:30 a.m. on July 19th and on August 2nd for City Council Minutes – July 14, 2014 Page 2 children of all ages. The community center is looking for adult volunteers with fishing licenses to help. 5. Consent Agenda: A. Consideration of approving payment of bills for July 14th. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. B. Consideration of approving new hires and departures for City departments. Recommendation: Ratify new hires and terminations for MCC, DMV, FiberNet, Finance, and Water Department. C. Consideration of adopting Resolution #2014-068 approving an Assessment Agreement and certifying special assessments for 503 Maple Street (PID 155- 010-010060) to the Wright County Auditor for tax year payable 2015. Applicant: SRCS Building Company, o/b/o Swan River Montessori. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. D. Consideration of appointing additional election judges to serve for the 2014 elections. Recommendation: Appoint the following election judges for the 2014 elections. Richard Borque Linda Buchmann Rodney Byholm Charlotte Ludwig Rose Peters Marilyn Stickfort Sandy Suchy Carrie Theisen E. Consideration of approving a license for on-sale intoxicating liquor and Sunday liquor for the Monticello VFW at 713 Cedar Street. Applicant: USS Dorchester VFW Post 8731. Recommendation: Approve the application for an on-sale liquor license and Sunday liquor for the USS Dorchester VFW Post 8731 at 713 Cedar Street, contingent on receiving a signed application and revised certificate of insurance. F. Consideration of adopting Resolution #2014-069 calling for a public hearing regarding the issuance of a revenue obligation for the benefit of the Monticello Youth Hockey Program, Inc. and providing preliminary approval of the issuance. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA. G. Consideration of authorizing secondary digester cover cleaning, condition inspection, and time-sensitive repair and primary digester mixer repair. Recommendation: Authorize the following improvements to the WWTF digester: secondary digester cover cleaning, condition inspection, time-sensitive repair, and primary digester mixer repair. H. Consideration of adopting Resolution #2014-031A rescinding the previously- adopted legal description for Pine View Addition and replacing with an amended City Council Minutes – July 14, 2014 Page 3 legal description for vacated street right-of-way. Recommendation: Adopt Resolution #2014-031A rescinding the previously-adopted legal description for Pine View Addition and replacing with an amended legal description for vacated street right-of-way as identified in the resolution. I. Consideration of approving a contract with WSB for Market Matching economic development services. Recommendation: Approve a contract with WSB & Associates for Market Matching Economic Development Services for July 2014 through June 2015. LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEMS A, C, AND F. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-0. 6. Consideration of items removed from the consent agenda for discussion 5A. Consideration of approving payment of bills for July 14th Glen Posusta expressed concern about paying FiberNet General Manager Brian Estrem in advance for his work. Jeff O’Neill explained that it is common with consultant contracts to pay them before the month is completed. Glen Posusta asked about payment for a fence repair for the MCC. Kitty Baltos explained that this was a repair to the existing fence that was put back in place following the MCC Natatorium Improvements. Glen Posusta asked if he could remove the invoice to NAC to vote on it separately since it included an item for AMAX Storage which is his business. It was decided that was not necessary for approval of the bills. LLOYD HILGART MOVED TO APPROVE THE BILL AND PURCHASE CARD REGISTERS FOR A TOTAL AMOUNT OF $821,193.16. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-0. 5C. Consideration of adopting Resolution #2014-068 approving an Assessment Agreement and certifying special assessments for 503 Maple Street (PID 155-010- 010060) to the Wright County Auditor for tax year payable 2015. Applicant: SRCS Building Company, o/b/o Swan River Montessori Glen Posusta asked for an explanation on what is allowed to be included in an assessment agreement. He was concerned about the amount of the sewer fees. Angela Schumann noted that the majority of the cost is sewer access with a smaller amount for water access and some miscellaneous charges. Swan River is aware of the charges and asked for consideration of having this placed as a special assessment against the property. GLEN POSUSTA MOVED TO ADOPT RESOLUTION #2014-068 APPROVING AN ASSESSMENT AGREEMENT FOR SRCS BUILDING COMPANY FOR PID 155- 010-010060 AND CERTIFYING THE SPECIAL ASSESSMENTS IN THE AMOUNT City Council Minutes – July 14, 2014 Page 4 OF $29,001.35 TO THE WRIGHT COUNTY AUDITOR FOR TAX YEAR PAYABLE 2015. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5-0. 5F. Consideration of adopting Resolution #2014-069 calling for a public hearing regarding the issuance of a revenue obligation for the benefit of the Monticello Youth Hockey Program, Inc. and providing preliminary approval of the issuance Glen Posusta asked Wayne Oberg to explain the purpose behind the public hearing for another entity. Wayne Oberg explained that the law allows for the city to serve as a conduit for bond issuance for a non-profit entity. He verified that the city is at no risk for this type of bonding and it does not affect the city’s bond rating. Wayne Oberg noted that the bonding does count against the total bonding limit for the city this year, but the city does not intend to issue a large bond this year that would affect this. BRIAN STUMPF MOVED TO ADOPT RESOLUTION #2014-069 CALLING FOR A PUBLIC HEARING ON AUGUST 11, 2014 AT 7 P.M. REGARDING THE ISSUANCE OF A REVENUE OBLIGATION FOR THE BENEFIT OF THE MONTICELLO YOUTH HOCKEY PROGRAM, INC. AND PROVIDING TEMPORARY APPROVAL TO THE ISSUANCE; STAFF IS DIRECTED TO PUBLISH NOTICE ACCORDINGLY. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5-0. 7. Regular Agenda: A. Consideration of accepting 2013 Audit Report Jim Eichten of Malloy, Montague, Karnowski, Radosevich & Co. (MMKR) introduced himself and provided a presentation for Council regarding the 2013 Audit. He noted that three documents were provided to Council with their council packets: Special Purpose Audit Reports, Management Report, and Comprehensive Annual Financial Report (CAFR). In the Management Report, the audit firm gives their opinion on the financial statements, comments on testing of internal controls and compliance, and addresses any single audits of federal grants (there were none in 2013), and provides an audit summary. MMKR found that the financial statements were fairly presented in accordance with U.S. accounting standards and gave an unmodified (or clean) opinion. GASB Statement No. 65 on Items Previously Reported as Assets and Liabilities was implemented this year. An internal control finding was related to a prior period adjustment regarding accounting for special assessments. Since Wright County serves as the paying agent, it made sense for the city to align their records with Wright County’s records, resulting in a prior period adjustment of $3,282,241. There were several minor legal compliance findings: signed declarations were missing on community City Council Minutes – July 14, 2014 Page 5 center payroll transactions and there was one invoice that was not paid within the required 35 day period after receipt of invoice. Jim Eichten discussed some of the findings from 2012 that were not an issue during 2013 such as required contract language for subcontractors. MMKR had two recommendations for best practices: provide written contingency planning for IT and develop written policies and cross-training for segregation of duties related to finances in community center duties. Jim Eichten then reviewed the financial statements addressed in the audit. He noted that taxable market values had been decreasing since 2010; however, the total market value increased in 2013. He correlated this to tax rates across the state which showed the city’s tax rate was slightly higher than average in 2012 but lower than average in 2013. Next he compared average revenues statewide to Monticello’s. The city generates much higher property taxes than other cities; however intergovernmental revenues, which includes Local Government Aid (LGA) received by other cities, is much lower. On the expense side, the city spends more per capita than the statewide average in several areas including debt service. Jim Eichten discussed individual fund balances and showed a graph of the general fund showing balances at 61% of the General Fund annual expenditures, which is within the required levels. Jim Eichten also compared general fund revenues and expenditures by function. Jim Eichten went on to review the enterprise funds: water, sewer, liquor, fiber optics, and deputy registrar. The fiber optics fund continues to display unpaid interest on the bonds until that is fully resolved. Jim Eichten showed operating income with and without depreciation in water, sewer and liquor funds. The fiber optic fund continues to show an operating loss of over $1.5 million. The city’s financial position is impacted negatively by that operating loss and again shows a decline for 2013. Jim Eichten commented on the investment return which shows as a loss. This is related to the increase in interest rates and most cities are seeing this same thing. Jim Eichten noted that the City will again apply for the CAFR award. Glen Posusta asked if all cities are required to have an outside audit, why do some cities, such as Detroit, run into huge financial problems. Jim Eichten explained that some other states have different requirements for auditing and reporting, and may run into issues due to unfunded liabilities. For example, Detroit’s pension plans became a large part of their financial problems, when they were required to include those values as unfunded liabilities. Wayne Oberg pointed out that some of the cities that have run into problems, did not have good accounting policies in City Council Minutes – July 14, 2014 Page 6 place years ago that contributed to their problems later. Many cities now have standards in place that help prevent those problems. LLOYD HILGART MOVED FOR ALTERNATIVE #1 ACCEPTING THE 2013 AUDIT REPORT AS PRESENTED. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0. B. Consideration of providing direction to staff relating to public auction of tax- forfeited lots in the City of Monticello and letter of recommendation to Wright County Angela Schumann gave a presentation to Council related to the public auction of tax forfeit lots in Hillside Farm 3rd and 4th Additions. The County is holding a valuation meeting tomorrow, July 15th, to determine valuations on all lots that will go to public auction this year. Angela Schumann reviewed the staff recommendations that Council is asked to approve as part of a letter to go to Wright County officials relative to the public auction. These recommendations include a request to auction Lots 1 through 6, Block 1 of Hillside Farm 3rd Addition as a block. These are the lots that will require a retaining wall due to the slope of the hill at the back of these lots. Clint Herbst noted that the city intends to reassess any unpaid cancelled assessments on lots that are purchased at auction. Council indicated that they hope buyers will be alerted that there may be additional future assessments if the lots are not valued to adequately cover all new and cancelled assessments. Glen Posusta asked about the sale of lots in blocks rather than individually. Angela Schumann explained that there is one group of lots that it would be best to sell in a block so that the developer is aware of the need for a retaining wall along the north side of those lots. Other than that group, city staff did not have a specific recommendation on auctioning lots in groups or individually. Glen Posusta thought that it might be better to sell all lots in Hillside Farms 3rd and 4th together so that the developer could spread the cost of the retaining wall over all lots. Clint Herbst asked if there was something that could be done to grade those lots differently to decrease the cost of a retaining wall. Shibani Bisson commented on some possible options that could be used to accommodate the slope; currently the developer contract calls for a 10 ft high retaining wall. Glen Posusta asked about Step #5 listed in the state’s Tax Forfeit Rules which has to do with taking a portion of the sale proceeds for a park fund. Angela Schumann pointed out that those are the state rules and not the county’s. Angela pointed out that according to the rules, the City would be reimbursed new assessments and cancelled assessments prior to Step #5 if the valuation is set high enough. City Council Minutes – July 14, 2014 Page 7 Glen Posusta feels that it would probably be better to sell these lots as an entire block. Brian Stumpf stated that he would prefer to let the lots go to auction individually with the exception of the group of lots that need a retaining wall. He wants all builders to have an opportunity on these lots. Council discussed possible scenarios for selling the lots and recovering the costs associated with special assessments. Jeff O’Neill commented that it is possible there may not be a need for a retaining wall if the developer finds another solution for addressing the drainage issues on those six lots. Jeff would recommend that the retaining wall lots be sold in a block. TOM PERRAULT MOVED FOR ALTERNATIVE #1 DIRECTING STAFF TO SUBMIT A LETTER OF RECOMMENDATION TO WRIGHT COUNTY REGARDING PREFERENCES FOR PUBLIC AUCTION OF TAX FORFEIT PARCELS WITHIN THE CITY, INCLUDING THE SALE OF LOTS 1-6, BLOCK 1, HILLSIDE FARM 3RD ADDITION AS A BLOCK. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED 5-0. C. Consideration of selecting project area for 2014 Street Lighting improvements, City Project No. 14C001 Shibani Bisson presented several areas for potential street lighting improvements for 2014. She reviewed the city’s street lighting program which was implemented in 2006. She showed several lighting styles along commercial and residential corridors. The areas evaluated for lighting this year are:  West 7th Street between CR39 and Elm Street  Elm Street between 7th Street and 6th Street  Chelsea Road between CR 39 and 90th Street  Oakwood Drive and Cedar Street (between Oakwood Drive and Chelsea Road)  Meadow Oak Avenue between CSAH 18 and Broadway  6th Street- mid-block lighting between TH 25 and Linn Street  Cul-de-sacs continue to the driven by resident petition City staff narrowed this to two areas: (a) 7th Street West from CR 39 to Elm St plus the Elm Street section from 7th to 6th Street and (b) Chelsea Road West from CR 39 to 90th Street. Shibani Bisson talked about the lighting installations that are recommended. She noted that Xcel Energy would install the lights on Elm Street and then the City would be charged a monthly electric charge. Shibani Bisson explained that the light poles on West 7th Street would alternate on both sides of the road. Brian Stumpf stated that he prefers to go with 7th Street West lighting plus having Xcel add the lights on Elm Street. City Council Minutes – July 14, 2014 Page 8 BRIAN STUMPF MOVED FOR ALTERNATIVE #1 SELECTING WEST 7TH STREET BETWEEN CR 39 AND ELM STREET ALONG WITH ELM STREET BETWEEN 7TH AND 6TH STREETS FOR THE 2014 STREET LIGHTING IMPROVEMENTS, CITY PROJECT NO. 14C001; CITY STAFF IS DIRECTED TO PRESENT A PROJECT CONTRACT FOR APPROVAL AT AN UPCOMING COUNCIL MEETING. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED 5-0. D. Consideration of authorizing up to $30,000 for Pathway System Improvements along CSAH 75 (Chestnut Street to West River Street) Shibani Bisson introduced this item with an explanation of the city’s pathway system. The City has about 17 miles of pathways and plows about 7 miles during the winter. The Parks Department has inspected the pathway system over the past 4-5 years and rated the condition of the pathways. They have identified areas, which are recommended for maintenance at this time, along CSAH 75 between Chestnut Ave and West River Street. This would include a micro-surfacing product to extend the life of the pathway beyond the current maintenance methods. The product that they are planning to use, called T-Mat, is used by the Three Rivers Park District and some other entities. T-Mat is a mixture of asphalt emulsion, aggregate and chemical additives in a liquid form, applied in two layers. Clint Herbst stated that this seems like a good product and at a reasonable cost. LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO AUTHORIZE UP TO $30,000 FOR PATHWAY SYSTEM IMPROVMENTS ALONG CSAH 75 FROM CHESTNUT STREET TO WEST RIVER STREET AND ENTER INTO AN AGREEMENT WITH ASPHALT CONTRACTORS, INC. FOR THE ESTIMATED AMOUNT OF $27,478.68. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5-0. E. Consideration of adopting Resolution #2014-070 approving the Joint Powers Agreement for public transit service through the Wright County Area Transportation (WCAT) Joint Powers Board Jeff O’Neill commented that the city is continuing to look at the costs that the city might pay as a partner on the Wright County Area Transportation Board. The city is also looking into the potential for contracting with Hoglund Transportation to provide a city transit system. Clint Herbst indicated that there may be a need to call a special meeting to address this as the city is not ready to consider this tonight. No action was taken. City Council Minutes – July 14, 2014 Page 9 8. Added items  FNM update – Jeff O’Neill reported that Brian Estrem has put in a request to be relieved of his contract as he received an offer with another company. About the same time, Lance Addison contacted the city and is interested in negotiating a contract with the city to provide general management services. Dan Olsen of Windomnet will continue to provide services to FiberNet. BRIAN STUMPF MOVED TO AUTHORIZE CITY ADMINISTRATOR JEFF O’NEILL TO NEGOTIATE A CONTRACT WITH LANCE ADDISON TO PROVIDE GENERAL MANAGEMENT SERVICES FOR FIBERNET. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5-0. Glen Posusta expressed his concern about setting up a contract that allows someone to leave with no consequences. He also feels that the contract should be longer term and there should be some kind of penalty assessed if the manager would leave early. Clint Herbst suggested that the terms should specify the limited reasons that the contract could be terminated. He would expect Jeff to discuss all of these concerns with Mr. Addison.  Otter Creek Parking – Glen Posusta stated that he would like to investigate the possibility of putting in a small parking area for Otter Creek Park. Glen Posusta suggested talking to Wright County to see if they would allow an entrance off CSAH 75. Brian Stumpf suggested looking at possible cul-de-sac parking in Par West Addition. Council directed Tom Pawelk to check into some options.  Mowing blight compliance – Glen Posusta wanted a further explanation of the notification process used for mowing blights and wants to know how other cities handle this. Angela Schumann explained that this process was recommended by the City Attorney and they work with a number of other cities. Glen Posusta reiterated that he would like to know what area cities are doing and asked staff to check into that.  Glen Posusta asked if Council members could contact city staff directly about spelling or grammatical corrections to minutes rather than bring them to a council meeting. Jeff O’Neill said that was acceptable, but should be a council member’s choice.  Mayor Herbst complimented streets and parks employees for the great job they did for Riverfest and commented positively on the new look of Pioneer Park.  Light in Hillside Park - Tom Perrault mentioned that a resident living in this area has asked for the light in this park to be turned on again. Jeff explained that the City does not flood a rink in the parking lot anymore so they had Xcel discontinue lighting the area. Council directed staff that the light could be turned on if there is a good reason to justify the light. City Council Minutes – July 14, 2014 Page 10  Mayor Herbst also noted that the evergreen tree in Hillside cemetery that had served as a Christmas tree is no longer there. He would like to see another evergreen tree planted so that it can eventually be lighted for the Christmas season. 9. Adjournment Mayor Herbst adjourned the meeting at 9:05 p.m. Recorder: Catherine M. Shuman ____ Approved: Attest: __________________________ City Administrator CityCouncilAgenda:7/28/14 1 5A.ConsiderationofapprovingpaymentofbillregistersforJuly28th (WO) A.REFERENCEANDBACKGROUND: Citystaffsubmitstheattachedbillregistersandpurchasingcardregistersforapprovalby Council.Thebillregisterscontainallinvoicesprocessedandthepurchasingcard registerscontainallcardpurchasesmadesincethelastCouncilmeeting.SubjecttoMN Statutes,mostinvoicesrequireCouncilapprovalpriortoreleasingchecksforpayment. ThedayfollowingCouncilapproval,paymentswillbereleasedunlessdirected otherwise.AcreditpurchasingagreementandpolicywasapprovedbyCouncilinitially andcardpurchasesmustcomplywiththepolicy. IfCouncilhasnoquestionsorcommentsonthebillandpurchasecardregisters,thesecan beapprovedwiththeconsentagenda.Ifrequested,thisitemcanberemovedfrom consentanddiscussedpriortomakingamotionforapproval. A1.BudgetImpact:None A2.StaffWorkloadImpact:Noadditionalworkrequired B.ALTERNATIVEACTIONS: 1.Motiontoapprovethebillandpurchasecardregistersforatotalamountof $390,885.11. 2.MotiontoapprovetheregisterswithchangesdirectedbyCouncil. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1or#2,perdirectionofCouncil. D.SUPPORTINGDATA: Billregisters PurchaseCardregisters User: Printed:07/14/2014 - 9:12AM Ann.Zimmerman Computer Check Proof List by Vendor Accounts Payable Batch:00205.07.2014 - 205.07.2014 AP Invoice No Description Amount Payment Date Acct Number Reference Vendor:3231 COMMISSIONER OF REVENUE Check Sequence: 1 ACH Enabled: False Parcel #1 Tax forfeit PID 155-123-000030 State Deed Fee 250.00 07/14/2014 101-41520-443990 250.00Check Total: Vendor:3231 COMMISSIONER OF REVENUE Check Sequence: 2 ACH Enabled: False Parcel #2 Tax forfeit PID 155-142-000010 State Deed Fee 250.00 07/14/2014 101-41520-443990 250.00Check Total: Vendor:3231 COMMISSIONER OF REVENUE Check Sequence: 3 ACH Enabled: False Parcel #3 Tax forfeit PID 155-160-000030 State Deed Fee 250.00 07/14/2014 101-41520-443990 250.00Check Total: Vendor:3231 COMMISSIONER OF REVENUE Check Sequence: 4 ACH Enabled: False Parcel #4 Tax forfeit PID 155-177-000010 State Deed Fee 250.00 07/14/2014 101-41520-443990 250.00Check Total: Vendor:2645 WRIGHT CO AUDITOR-TREAS Check Sequence: 5 ACH Enabled: False Parcel #1 Tax forfeit PID 155-123-000030 Deed Tax 6.65 07/14/2014 101-41520-431990 6.65Check Total: Vendor:2645 WRIGHT CO AUDITOR-TREAS Check Sequence: 6 ACH Enabled: False Parcel #2 Tax forfeit PID 155-142-000010 Deed Tax 6.65 07/14/2014 101-41520-431990 6.65Check Total: Vendor:2645 WRIGHT CO AUDITOR-TREAS Check Sequence: 7 ACH Enabled: False Parcel #3 Tax forfeit PID 155-160-000030 Deed Tax 6.65 07/14/2014 101-41520-431990 6.65Check Total: AP-Computer Check Proof List by Vendor (07/14/2014 - 9:12 AM)Page 1 Invoice No Description Amount Payment Date Acct Number Reference Vendor:2645 WRIGHT CO AUDITOR-TREAS Check Sequence: 8 ACH Enabled: False Parcel #4 Tax forfeit PID 155-177-000010 Deed Tax 6.65 07/14/2014 101-41520-431990 6.65Check Total: Vendor:1581 WRIGHT CO RECORDER Check Sequence: 9 ACH Enabled: False Parcel #1 Tax forfeit PID 155-123-000030 Recording fee 46.00 07/14/2014 101-41520-431990 46.00Check Total: Vendor:1581 WRIGHT CO RECORDER Check Sequence: 10 ACH Enabled: False Parcel #2 Tax forfeit PID 155-142-000010 Recording fee 46.00 07/14/2014 101-41520-431990 46.00Check Total: Vendor:1581 WRIGHT CO RECORDER Check Sequence: 11 ACH Enabled: False Parcel #3 Tax forfeit PID 155-160-000030 Recording fee 46.00 07/14/2014 101-41520-431990 46.00Check Total: Vendor:1581 WRIGHT CO RECORDER Check Sequence: 12 ACH Enabled: False Parcel #4 Tax forfeit PID 155-177-000010 Recording fee 46.00 07/14/2014 101-41520-431990 46.00Check Total: Total for Check Run: Total of Number of Checks: 1,210.60 12 AP-Computer Check Proof List by Vendor (07/14/2014 - 9:12 AM)Page 2 The preceding list of bills payable was reviewed and approved for payment. Date: 7/28/14 Approved by: _____________________________________ Mayor Clint Herbst User: Printed:07/16/2014 - 10:16AM Debbie.Davidson Computer Check Proof List by Vendor Accounts Payable Batch:00302.07.2014 - 00302.07.2014 PR Invoice No Description Amount Payment Date Acct Number Reference Vendor:1592 IRS Check Sequence: 1 ACH Enabled: True PR Batch 00302.07.2014 Federal Income Tax 12,608.98 07/15/2014 101-00000-217010 PR Batch 00302.07.2014 Federal Income Tax PR Batch 00302.07.2014 FICA Employee Portion 9,445.33 07/15/2014 101-00000-217030 PR Batch 00302.07.2014 FICA Employee Portion PR Batch 00302.07.2014 FICA Employer Portion 9,445.33 07/15/2014 101-00000-217030 PR Batch 00302.07.2014 FICA Employer Portion PR Batch 00302.07.2014 Medicare Employee Portion 2,245.30 07/15/2014 101-00000-217030 PR Batch 00302.07.2014 Medicare Employee Portion PR Batch 00302.07.2014 Medicare Employer Portion 2,245.30 07/15/2014 101-00000-217030 PR Batch 00302.07.2014 Medicare Employer Portion 35,990.24Check Total: Vendor:1593 MN DEPT OF REVENUE - ACH Check Sequence: 2 ACH Enabled: True PR Batch 00302.07.2014 State Income Tax 5,773.28 07/15/2014 101-00000-217020 PR Batch 00302.07.2014 State Income Tax 5,773.28Check Total: Vendor:1594 PERA - ACH Check Sequence: 3 ACH Enabled: True PR Batch 00302.07.2014 PERA Coord Employee 7,909.36 07/15/2014 101-00000-217040 PR Batch 00302.07.2014 PERA Coord Employee PR Batch 00302.07.2014 PERA Coord Additional 1,265.50 07/15/2014 101-00000-217040 PR Batch 00302.07.2014 PERA Coord Additional PR Batch 00302.07.2014 PERA Coord Employer 7,909.36 07/15/2014 101-00000-217040 PR Batch 00302.07.2014 PERA Coord Employer PR Batch 00302.07.2014 PERA DCP Employee 125.00 07/15/2014 101-00000-217040 PR Batch 00302.07.2014 PERA DCP Employee PR Batch 00302.07.2014 PERA DCP Employer 125.00 07/15/2014 101-00000-217040 PR Batch 00302.07.2014 PERA DCP Employer 17,334.22Check Total: Vendor:1597 AMERITAS VARIABLE LIFE INS CO Check Sequence: 4 ACH Enabled: False PR Batch 00302.07.2014 Def Comp - Ameritas 725.00 07/15/2014 101-00000-217050 PR Batch 00302.07.2014 Def Comp - Ameritas PR Batch 00302.07.2014 Def Comp - Ameritas (%) 440.78 07/15/2014 101-00000-217050 PR Batch 00302.07.2014 Def Comp - Ameritas (%) 1,165.78Check Total: Vendor:1598 VANTAGEPOINT TRANSFER AGENTS-301962 Check Sequence: 5 ACH Enabled: True PR Batch 00302.07.2014 Def Comp - ICMA 1,750.00 07/15/2014 101-00000-217050 PR Batch 00302.07.2014 Def Comp - ICMA 1,750.00Check Total: AP-Computer Check Proof List by Vendor (07/16/2014 - 10:16 AM)Page 1 Invoice No Description Amount Payment Date Acct Number Reference Vendor:1599 TASC Check Sequence: 6 ACH Enabled: True PR Batch 00302.07.2014 FSA - Child Care 153.84 07/15/2014 101-00000-217200 PR Batch 00302.07.2014 FSA - Child Care PR Batch 00302.07.2014 FSA - Medical 136.15 07/15/2014 101-00000-217300 PR Batch 00302.07.2014 FSA - Medical 289.99Check Total: Vendor:1601 COLONIAL SUPPLEMENTAL INS - ACH Check Sequence: 7 ACH Enabled: True PR Batch 00301.07.2014 Colonial Life after tax 180.79 07/01/2014 101-00000-217990 PR Batch 00301.07.2014 Colonial Life after tax PR Batch 00301.07.2014 Colonial Insurance before Tax 103.49 07/01/2014 101-00000-217990 PR Batch 00301.07.2014 Colonial Insurance before Tax PR Batch 00302.07.2014 Colonial Life after tax 19.09 07/15/2014 101-00000-217990 PR Batch 00302.07.2014 Colonial Life after tax 303.37Check Total: Vendor:1602 INTL UNION OF OPER ENGINEERS Check Sequence: 8 ACH Enabled: False PR Batch 00302.07.2014 Union Dues 429.00 07/15/2014 101-00000-217070 PR Batch 00302.07.2014 Union Dues 429.00Check Total: Vendor:2405 WELLS FARGO - HSA Check Sequence: 9 ACH Enabled: True PR Batch 00302.07.2014 Health Ins - Employee HSA 4,326.72 07/15/2014 101-00000-217064 PR Batch 00302.07.2014 Health Ins - Employee HSA 4,326.72Check Total: Vendor:2646 US DEPARTMENT OF EDUCATION Check Sequence: 10 ACH Enabled: False PR Batch 00302.07.2014 Dept of Education 112.99 07/15/2014 101-00000-217090 PR Batch 00302.07.2014 Dept of Education 112.99Check Total: Total for Check Run: Total of Number of Checks: 67,475.59 10 AP-Computer Check Proof List by Vendor (07/16/2014 - 10:16 AM)Page 2 The preceding list of bills payable was reviewed and approved for payment. Date: 7/28/14 Approved by:______________________________________ Mayor Clint Herbst User: Printed:07/24/2014 - 8:36AM Debbie.Davidson Computer Check Proof List by Vendor Accounts Payable Batch:00206.07.2014 - 206.07.2014 AP Invoice No Description Amount Payment Date Acct Number Reference Vendor:1018 ALLIED BLACKTOP COMPANY Check Sequence: 1 ACH Enabled: False 19248 2014 Street Seal Coat(paying 95% -remaining for 8/11 cc approv) 108,064.42 07/29/2014 101-43120-440990 108,064.42Check Total: Vendor:1040 ARAMARK UNIFORM SERVICES AUS MPLS MC LOCKBOX Check Sequence: 2 ACH Enabled: False 629-8022538 uniform rental 25.48 07/29/2014 101-45201-441700 629-8022538 uniform rental 11.74 07/29/2014 602-49490-441700 629-8022538 uniform rental 11.74 07/29/2014 601-49440-441700 629-8022538 uniform rental 36.25 07/29/2014 101-43120-441700 629-8022538 towel rental 39.79 07/29/2014 101-43127-421990 6298004411 uniform rental 25.47 07/29/2014 101-45201-441700 6298004411 uniform rental 11.48 07/29/2014 602-49490-441700 6298004411 uniform rental 11.48 07/29/2014 601-49440-441700 6298004411 uniform rental 35.99 07/29/2014 101-43120-441700 6298004411 towel rental 39.28 07/29/2014 101-43127-421990 6298008992 uniform rental 25.33 07/29/2014 101-45201-441700 6298008992 uniform rental 11.34 07/29/2014 602-49490-441700 6298008992 uniform rental 11.34 07/29/2014 601-49440-441700 6298008992 uniform rental 38.10 07/29/2014 101-43120-441700 6298008992 towel rental 22.89 07/29/2014 101-43127-421990 62980134766 uniform rental 11.33 07/29/2014 602-49490-441700 62980134766 uniform rental 11.33 07/29/2014 601-49440-441700 62980134766 uniform rental 35.34 07/29/2014 101-43120-441700 62980134766 towel rental 24.88 07/29/2014 101-43127-421990 62980134766 uniform rental 25.32 07/29/2014 101-45201-441700 6298018037 uniform rental 25.31 07/29/2014 101-45201-441700 6298018037 uniform rental 11.32 07/29/2014 602-49490-441700 6298018037 uniform rental 11.32 07/29/2014 601-49440-441700 6298018037 uniform rental 35.33 07/29/2014 101-43120-441700 6298018037 towel rental 23.87 07/29/2014 101-43127-421990 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 1 Invoice No Description Amount Payment Date Acct Number Reference 573.05Check Total: Vendor:1065 BELLBOY CORPORATION Check Sequence: 3 ACH Enabled: True 43833700 re sale 2,802.82 07/29/2014 609-49750-425100 43833700 freight 33.59 07/29/2014 609-49750-433300 90477900 freight 1.06 07/29/2014 609-49750-433300 90477900 re sale 154.99 07/29/2014 609-49750-425400 90477900 6 pack ring 75.00 07/29/2014 609-49754-421990 3,067.46Check Total: Vendor:1067 BERNICK'S Check Sequence: 4 ACH Enabled: False 24781 re sale 16.40 07/29/2014 609-49750-425500 24781 re sale 71.60 07/29/2014 609-49750-425400 24782 re sale 379.80 07/29/2014 609-49750-425200 49820 re sale 21.80 07/29/2014 609-49750-425400 49821 re sale 2,386.25 07/29/2014 609-49750-425200 49822 re sale -20.00 07/29/2014 609-49750-425500 2,855.85Check Total: Vendor:1083 BRAUN INTERTEC CORPORATION Check Sequence: 5 ACH Enabled: True B002674 12C008 - CCOSTS - consulting services 1,642.75 07/29/2014 400-43300-459010 1,642.75Check Total: Vendor:1749 CALIX NETWORKS INC Check Sequence: 6 ACH Enabled: True 1071824 utx - hardware Advance Exchange - in Warranty 245.00 07/29/2014 656-49877-421800 1071987 utx - 7 position power connector 50.43 07/29/2014 656-49877-421800 295.43Check Total: Vendor:1106 CENTRAL MCGOWAN INC Check Sequence: 7 ACH Enabled: False 23111 tank rental 48.09 07/29/2014 226-45122-441500 48.09Check Total: Vendor:2654 CENTURYLINK Check Sequence: 8 ACH Enabled: False R97006006014182 voice - 7/1-31/14 monthly access charges 142.13 07/29/2014 655-49860-430910 142.13Check Total: Vendor:2654 CENTURYLINK Check Sequence: 9 ACH Enabled: False R720106106-1418 voice - 7/1-31/14 monthly access charges 600.00 07/29/2014 655-49860-430910 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 2 Invoice No Description Amount Payment Date Acct Number Reference 600.00Check Total: Vendor:2654 CENTURYLINK Check Sequence: 10 ACH Enabled: False L04003703714182 voice - 7/1-31/14 monthly access charges 124.90 07/29/2014 655-49860-430910 124.90Check Total: Vendor:1120 CONCRETE PRODUCTS NEW LONDON Check Sequence: 11 ACH Enabled: False 43686 ZPARKS- (10) 20' flex edging w/ couplers 69.70 07/29/2014 101-45201-422500 43696 ZPARKS- 2oz typar standard 6' x 300' 85.96 07/29/2014 101-45201-422500 43720 ZPARKS - (2) boxes 6 x 1 x 6 sod staple 53.20 07/29/2014 101-45201-422500 208.86Check Total: Vendor:2476 CSI DIGITAL INC Check Sequence: 12 ACH Enabled: True 102478 Trouble Tickets - #3148 6/27-30/14; #3123 6/20/14 420.00 07/29/2014 655-49870-432500 102493 Annual STB license support 3,315.00 07/29/2014 655-49870-443700 3,735.00Check Total: Vendor:1129 DAHLHEIMER BEVERAGE LLC Check Sequence: 13 ACH Enabled: True 1113153 re sale 52.80 07/29/2014 609-49750-425200 1113160 re sale 400.00 07/29/2014 609-49750-425200 94090 re sale 30,546.60 07/29/2014 609-49750-425200 94184 re sale 33.00 07/29/2014 609-49750-425400 94184 re sale 1,445.75 07/29/2014 609-49750-425200 94581 re sale -155.40 07/29/2014 609-49750-425200 94582 re sale 600.95 07/29/2014 609-49750-425200 94717 re sale 829.00 07/29/2014 609-49750-425200 94717 re sale 16.50 07/29/2014 609-49750-425400 33,769.20Check Total: Vendor:1134 DAY DISTRIBUTING COMPANY Check Sequence: 14 ACH Enabled: True 759573 re sale 3,747.15 07/29/2014 609-49750-425200 3,747.15Check Total: Vendor:1141 DIAMOND VOGEL PAINT Check Sequence: 15 ACH Enabled: False 813118355 (25) 50# glass bead bags; (3) 5 Gallon yellow 1,013.45 07/29/2014 101-43120-421510 1,013.45Check Total: Vendor:1680 EPIC PRODUCTS INC Check Sequence: 16 ACH Enabled: False AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 3 Invoice No Description Amount Payment Date Acct Number Reference 0449907 re-sale 152.83 07/29/2014 609-49750-425400 152.83Check Total: Vendor:3318 FIBERNET MONTICELLO Check Sequence: 17 ACH Enabled: False 7/11/14 Bullseye 7/11/14 461.61 07/29/2014 655-49870-443980 461.61Check Total: Vendor:1179 FIRE SAFETY USA INC Check Sequence: 18 ACH Enabled: False 70493 (2) replacement bulb - 500 watt 30.00 07/29/2014 101-42200-421990 30.00Check Total: Vendor:3790 HEATER RENTAL SERVICES - HRS Check Sequence: 19 ACH Enabled: False 4441 Electric scissorlift 432.84 07/29/2014 226-45122-424100 432.84Check Total: Vendor:2591 BRIAN HELLMAN Check Sequence: 20 ACH Enabled: False 2873 2 mowing; clean up grave materials 1,200.00 07/29/2014 101-45501-431050 2877 (4) mowing 160.00 07/29/2014 101-45501-431050 2878 (4) mowing 140.00 07/29/2014 101-45501-431050 1,500.00Check Total: Vendor:1259 JJ TAYLOR DISTRIBUTING Check Sequence: 21 ACH Enabled: False 2237117 re sale 941.10 07/29/2014 609-49750-425200 941.10Check Total: Vendor:1260 JME OF MONTICELLO INC Check Sequence: 22 ACH Enabled: True SYS47123 Ladder 1 main shop preventative maintenence 115.50 07/29/2014 101-42200-421990 115.50Check Total: Vendor:1263 JOHNSON BROS WHOLESALE LIQUOR Check Sequence: 23 ACH Enabled: False 1892398 freight 1.39 07/29/2014 609-49750-433300 1892398 re sale 166.10 07/29/2014 609-49750-425100 1892399 re sale 368.00 07/29/2014 609-49750-425300 1892399 freight 9.73 07/29/2014 609-49750-433300 1893629 freight 43.77 07/29/2014 609-49750-433300 1893629 re sale 4,330.23 07/29/2014 609-49750-425100 1893630 re sale 1,583.74 07/29/2014 609-49750-425300 1893630 freight 40.07 07/29/2014 609-49750-433300 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 4 Invoice No Description Amount Payment Date Acct Number Reference 1893631 re sale 52.00 07/29/2014 609-49750-425200 1896559 re sale 805.00 07/29/2014 609-49750-425100 1896559 re sale 12.51 07/29/2014 609-49750-433300 1896560 re sale 1,073.20 07/29/2014 609-49750-425300 1896560 freight 26.41 07/29/2014 609-49750-433300 1898112 re sale 2,074.95 07/29/2014 609-49750-425100 1898112 freight 28.92 07/29/2014 609-49750-433300 1898113 freight 49.69 07/29/2014 609-49750-433300 1898113 re sale 1,446.88 07/29/2014 609-49750-425300 1898113 re sale 82.70 07/29/2014 609-49750-425400 1899426 freight 25.32 07/29/2014 609-49750-433300 1899426 re sale 2,138.17 07/29/2014 609-49750-425100 1899427 re sale 1,029.05 07/29/2014 609-49750-425300 1899427 re sale 40.00 07/29/2014 609-49750-425400 1899427 freight 21.60 07/29/2014 609-49750-433300 15,449.43Check Total: Vendor:1631 LANO EQUIPMENT INC Check Sequence: 24 ACH Enabled: False 02-157765 Repair parts Bob cat skid loader #215 244.93 07/29/2014 101-45201-422100 244.93Check Total: Vendor:1229 MAJIRS ADVERTISING & DESIGN INC Check Sequence: 25 ACH Enabled: True 1069 (6) sets business cards 291.45 07/29/2014 217-41990-420990 291.45Check Total: Vendor:3745 MANSFIELD OIL COMPANY Check Sequence: 26 ACH Enabled: True 705701 573 gallons diesel 2,026.65 07/29/2014 101-43120-421200 705702 680 gallons unleaded 2,315.81 07/29/2014 101-43120-421200 4,342.46Check Total: Vendor:1328 MIDWAY IRON & METAL CO INC Check Sequence: 27 ACH Enabled: False 240062 ZParks - (15) sheet bending; 11 ga steel 120.25 07/29/2014 101-45201-421990 240259 ZParks - ((2) D-rign; (2) threaded rod 45.02 07/29/2014 101-45201-421990 165.27Check Total: Vendor:1355 MN MUNICIPAL BEVERAGE ASSOCIATION Check Sequence: 28 ACH Enabled: False 07/2014-07/2015 Annual Dues July 2014-July 2015 2,350.00 07/29/2014 609-49754-443300 2,350.00Check Total: AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 5 Invoice No Description Amount Payment Date Acct Number Reference Vendor:1359 MN RURAL WATER ASSOCIATION Check Sequence: 29 ACH Enabled: False Member 2014-15 August 2014-15 Option B Associate Membership 225.00 07/29/2014 601-49440-443300 Member 2014-15 August 2014-15 (2) extra mailings 20.00 07/29/2014 601-49440-443300 245.00Check Total: Vendor:1375 MONTICELLO PRINTING INC Check Sequence: 30 ACH Enabled: True 07/01/2014 (100) ncident; (25) Training Reports; (35) Bylaws booklets 209.55 07/29/2014 101-42200-420300 07/01/2014 utx - (1000) Channel Guide Flyers 240.00 07/29/2014 655-49870-420300 449.55Check Total: Vendor:1382 MOON MOTOR SALES INC Check Sequence: 31 ACH Enabled: False 4671449 switch-key 77.99 07/29/2014 101-42200-421990 77.99Check Total: Vendor:2112 MPELRA Check Sequence: 32 ACH Enabled: False 07012014 August 13-15/2014 Summer Conference - Tracy Ergen 235.00 07/29/2014 101-41800-433200 235.00Check Total: Vendor:2072 NATIONAL TELCO TELEVISION CONSORTIUM Check Sequence: 33 ACH Enabled: True 2387 NTTC - June 2014 29,466.29 07/29/2014 655-49860-430920 29,466.29Check Total: Vendor:1098 NATIONWIDE CLEC LLC Check Sequence: 34 ACH Enabled: True 1199 June 2014 - (3.5) hr; fixed billing 2,580.00 07/29/2014 655-49870-431990 2,580.00Check Total: Vendor:1150 NCH CORPORATION Check Sequence: 35 ACH Enabled: True 20796551 (5) Cryobit with flats; (250) cable tie black heavy 306.30 07/29/2014 101-43127-421990 306.30Check Total: Vendor:2082 NEUSTAR INC Check Sequence: 36 ACH Enabled: True Account 20313 Invoice M-10721385 charges 6/1-30/2014 1.47 07/29/2014 655-49870-431990 Account 20313 Invoice M-10721385 charges 6/1-30/2014 124.02 07/29/2014 655-49870-431990 Account19894 Invoice M-10721272 charges 6/1-30/2014 345.00 07/29/2014 655-49870-431990 470.49Check Total: Vendor:2287 NORTH AMERICAN NUMBERING PLAN Check Sequence: 37 ACH Enabled: False AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 6 Invoice No Description Amount Payment Date Acct Number Reference IN069665 FCC Filer ID 828118 Number Admin in N AM - FNM share for 2014 25.00 07/29/2014 655-49870-431990 25.00Check Total: Vendor:1411 OLSON & SONS ELECTRIC INC Check Sequence: 38 ACH Enabled: True 49458 ZPARKS - pioneer - photo eye knuckle & labor 111.34 07/29/2014 101-45201-422500 111.34Check Total: Vendor:1412 OMANN BROTHERS INC Check Sequence: 39 ACH Enabled: False 10906 (10.04) SPWEA240B 534.13 07/29/2014 101-43120-422400 10909 (9.99) spwea240b 531.47 07/29/2014 101-43120-422400 10921 (5.05) spwea240b 268.66 07/29/2014 101-43120-422400 1,334.26Check Total: Vendor:1419 PAN O GOLD CO ST CLOUD Check Sequence: 40 ACH Enabled: True 0100004419108 (1/6) block party party food 32.48 07/29/2014 101-45175-443990 0100004419108 (1/6) block party party food 32.48 07/29/2014 226-45127-421980 0100004419108 (1/6) block party party food 32.48 07/29/2014 655-49870-434600 0100004419108 (1/6) block party party food 32.48 07/29/2014 101-41940-443990 0100004419108 (1/6) block party party food 32.48 07/29/2014 101-42800-443990 0100004419108 (1/6) block party party food 32.48 07/29/2014 101-00000-362900 194.88Check Total: Vendor:1273 PAUSTIS & SONS WINE CO Check Sequence: 41 ACH Enabled: False 8456247 re sale 616.74 07/29/2014 609-49750-425300 8456247 freight 12.50 07/29/2014 609-49750-433300 629.24Check Total: Vendor:1427 PHILLIPS WINE & SPIRITS CO Check Sequence: 42 ACH Enabled: False 2631526 freight 116.76 07/29/2014 609-49750-433300 2631526 re sale 6,715.87 07/29/2014 609-49750-425100 2631527 re sale 1,322.50 07/29/2014 609-49750-425300 2631527 freight 38.92 07/29/2014 609-49750-433300 2632294 re sale 2,064.14 07/29/2014 609-49750-425100 2632294 freight 34.40 07/29/2014 609-49750-433300 2632295 freight 13.90 07/29/2014 609-49750-433300 2632295 re sale 662.95 07/29/2014 609-49750-425300 2634203 re sale 533.80 07/29/2014 609-49750-425100 2634203 freight 8.34 07/29/2014 609-49750-433300 2634204 freight 15.29 07/29/2014 609-49750-433300 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 7 Invoice No Description Amount Payment Date Acct Number Reference 2634204 re sale 1,377.66 07/29/2014 609-49750-425100 2634205 re sale 226.80 07/29/2014 609-49750-425300 2634205 freight 8.34 07/29/2014 609-49750-433300 2635107 freight 50.41 07/29/2014 609-49750-433300 2635107 re sale 4,508.80 07/29/2014 609-49750-425100 2635951 re sale 998.35 07/29/2014 609-49750-425100 2635951 freight 12.96 07/29/2014 609-49750-433300 2635952 freight 34.56 07/29/2014 609-49750-433300 2635952 re sale 978.00 07/29/2014 609-49750-425300 2635952 re sale 41.95 07/29/2014 609-49750-425400 19,764.70Check Total: Vendor:3792 QUICKSILVER EXPRESS COURIER Check Sequence: 43 ACH Enabled: False 6499827 delivery First American Title Insurance 85.29 07/29/2014 101-41940-432200 85.29Check Total: Vendor:1450 RAILROAD MANAGEMENT CO III LLC Check Sequence: 44 ACH Enabled: False 310421 License #306033 10/16-15/2014 Rent Sewer Crossing 146.16 07/29/2014 265-49200-431990 310428 License #306033 10/16-17/2014 Rent Monticello Carver 146.16 07/29/2014 265-49200-431990 292.32Check Total: Vendor:3688 SOURCEONE SOLUTIONS LLC Check Sequence: 45 ACH Enabled: True 4231 July billing 2,006.71 07/29/2014 655-49870-431800 4231 July billing- postage 536.81 07/29/2014 655-49870-431800 2,543.52Check Total: Vendor:3309 SOUTHERN WINE & SPIRITS OF MINNESOTA Check Sequence: 46 ACH Enabled: False 1180537 freight 15.08 07/29/2014 609-49750-433300 1180537 re sale 1,211.87 07/29/2014 609-49750-425100 1180538 re sale 40.12 07/29/2014 609-49750-425400 1180538 freight 1.35 07/29/2014 609-49750-433300 1180539 re sale 1,967.00 07/29/2014 609-49750-425300 1180539 freight 24.30 07/29/2014 609-49750-433300 3,259.72Check Total: Vendor:1497 SPECTRUM SUPPLY COMPANY Check Sequence: 47 ACH Enabled: True 243143 (4) mops; (3) towels 210ct; mop bucket; detergents 643.68 07/29/2014 101-45201-421990 243313 33 gal liners case 26.19 07/29/2014 217-41990-421100 243314 33 gallon liners 27.99 07/29/2014 655-49870-421990 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 8 Invoice No Description Amount Payment Date Acct Number Reference 243317 (4) mops; (3) towels 210ct; mop bucket; detergents 242.89 07/29/2014 101-45201-421650 940.75Check Total: Vendor:1522 THORPE DISTRIBUTING COMPANY Check Sequence: 48 ACH Enabled: True 833139 re sale 16,352.75 07/29/2014 609-49750-425200 834505 re sale 148.35 07/29/2014 609-49750-425400 834506 re sale 47.20 07/29/2014 609-49750-425300 16,548.30Check Total: Vendor:3791 TRI STATE BOBCAT Check Sequence: 49 ACH Enabled: False S16567 2014 Bandit 12" Drum Style Brush Chipper 27,727.94 07/29/2014 703-00000-165010 27,727.94Check Total: Vendor:1544 US POSTAL SERVICE Check Sequence: 50 ACH Enabled: False 07/18/14 PI 42 - UB Qrt 2 2014 (3896 pcs) (1/2) 896.08 07/29/2014 601-49440-432200 07/18/14 PI 42 - UB Qrt 2 2014 (3896 pcs) (1/2) 896.08 07/29/2014 602-49490-432200 1,792.16Check Total: Vendor:2534 VAULTAS ALEXANDRIA LLC Check Sequence: 51 ACH Enabled: True 1862 gigabit Transport & cross connect 2,500.00 07/29/2014 655-49860-430930 1862 November 2013 cross connect; racks 349.00 07/29/2014 655-49860-430930 1862 June 2014 cross connect: private line 1,900.00 07/29/2014 655-49860-430930 4,749.00Check Total: Vendor:1552 VIKING COCA COLA BOTTLING CO Check Sequence: 52 ACH Enabled: True 1417930 re sale 307.20 07/29/2014 609-49750-425400 1422868 re sale 205.70 07/29/2014 609-49750-425400 512.90Check Total: Vendor:1684 VINOCOPIA Check Sequence: 53 ACH Enabled: True 102265 re sale 1,252.00 07/29/2014 609-49750-425300 102265 freight 19.50 07/29/2014 609-49750-433300 1,271.50Check Total: Vendor:1567 WES OLSON ELECTRIC LLC Check Sequence: 54 ACH Enabled: False 6694 Labor - Ellison Park Gazebo 130.00 07/29/2014 601-49440-440440 6694 Parts - Ellison Park Gazebo (4) red wing wire; (2) led fixtures; 234.54 07/29/2014 601-49440-440440 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 9 Invoice No Description Amount Payment Date Acct Number Reference 364.54Check Total: Vendor:1572 THE WINE COMPANY Check Sequence: 55 ACH Enabled: True 366711 re sale 858.00 07/29/2014 609-49750-425300 366711 freight 18.15 07/29/2014 609-49750-433300 876.15Check Total: Vendor:1573 WINE MERCHANTS INC Check Sequence: 56 ACH Enabled: False 510588 re sale 716.48 07/29/2014 609-49750-425300 510588 freight 7.64 07/29/2014 609-49750-433300 724.12Check Total: Vendor:1209 WIRTZ BEVERAGE MINNESOTA WINE & SPIRITS Check Sequence: 57 ACH Enabled: False 1080202645 re sale 4,655.35 07/29/2014 609-49750-425100 1080202645 re sale 822.00 07/29/2014 609-49750-425300 1080202645 re sale 84.00 07/29/2014 609-49750-425400 1080202645 freight 71.91 07/29/2014 609-49750-433300 2080046905 re sale -24.41 07/29/2014 609-49750-425100 2080049606 re sale -27.59 07/29/2014 609-49750-425100 5,581.26Check Total: Vendor:1583 WRIGHT HENNEPIN COOP ELECTRIC ASSOCIATION Check Sequence: 58 ACH Enabled: True 40710177100 06/01-07/01/2014 41.95 07/29/2014 602-49490-438100 40710177100 Sept 2014 service 19.95 07/29/2014 217-41990-431900 40710177100 Sept 2014 service 36.45 07/29/2014 101-45201-431900 40710177100 Sept 2014 service 27.95 07/29/2014 101-42200-431900 40710177100 Sept 2014 service 19.95 07/29/2014 601-49440-431900 40710177100 utx - Sept 2014 service 27.95 07/29/2014 226-45122-431900 40710177100 Sept 2014 service 32.95 07/29/2014 601-49440-431900 40710177100 Sept 2014 service 29.95 07/29/2014 601-49440-431900 40710177100 Sept 2014 service 19.95 07/29/2014 601-49440-431900 40710177100 Sept 2014 service 19.95 07/29/2014 101-45201-431900 40710177100 Sept 2014 service 1,477.44 07/29/2014 101-43160-438100 1,754.44Check Total: Vendor:1584 WSB & ASSOCIATES INC Check Sequence: 59 ACH Enabled: True 198 General Ph 6 2014 (6th of 12) 7,500.00 07/29/2014 101-43111-430300 198 General Ph 6 2014 meeting 147.00 07/29/2014 101-43111-430300 198 PREDSN-PLNEXP - General Ph 6 2014 meeting 483.00 07/29/2014 101-41910-430300 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 10 Invoice No Description Amount Payment Date Acct Number Reference 198 ZUNION-PLESCR - Union Crossing 6th add eview 69.00 07/29/2014 101-00000-220110 198 General Ph 6 2014 138.00 07/29/2014 101-41910-430300 8,337.00Check Total: Vendor:1907 XO COMMUNICATIONS LLC Check Sequence: 60 ACH Enabled: True 004000000156812 Date - Internet access 7/1-7/31/14 2,381.71 07/29/2014 655-49860-430930 2,381.71Check Total: Vendor:1588 ZEE MEDICAL SERVICE Check Sequence: 61 ACH Enabled: True 54096869 (3) first aid kits restocking 201.10 07/29/2014 101-43127-420650 201.10Check Total: Total for Check Run: Total of Number of Checks: 322,198.92 61 AP-Computer Check Proof List by Vendor (07/24/2014 - 8:36 AM)Page 11 The preceding list of bills payable was reviewed and approved for payment. Dat: 7/28/2014 Approved by: ____________________________________ Mayor Clint Herbst CityCouncilAgenda:7/28/2014 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 Samantha Murray Life Guard MCC 7/1/14 PT Conner Bird Life Guard MCC 7/17/2014 PT Leanne Holker League Manager MCC 7/21/2014 PT Tracy Falk DMV Clerk DMV 7/22/14 PT Kathryn Brisbois DMV Clerk DMV 7/29/14 PT Julie Cheney Finance Assistant Finance 8/4/14 FT Name Reason Department Last Day Class Matthew Spangler Involuntary MCC 6/28/2014 PT NEW EMPLOYEES TERMINATING EMPLOYEES New Hire and Terms City Council 2014: 7/22/2014 CityCouncilAgenda:7/28/14 1 5C.ConsiderationofadoptingResolution#2014-071toacceptcontributionsfromSchlenner, Wenner&Co.andOmniVision&Learning/UptownEyecaretoMCCforMovieinthe Parkevents KB A.REFERENCEANDBACKGROUND: Thisisthefifthyearthatthecommunitycenter,withthehelpoftheSherburneWrightCable Commission,ispresentingourMovieintheParkseries.Wehavethreegreatmoviesthis summerandthreegreatsponsors. WealreadyidentifiedtheMonticelloTimesasoneofoursponsors.Ourothertwosponsors areSchlenner,Wenner&CompanyandOmniVision&LearningCenter/UptownEyecare. SchlennerWenner&Coisalocalaccountingfirmthatprovidesaccounting,payrollandtax services.ThisistheirsecondyearasaMovieintheParksponsor.OmniVision&Learning Center/UptownEyecareisaneyecareandeyewearfirm.Dr.MaryGregoryisanowneror partownerinthebusinessandisoursponsorforthefirsttimeforMovieinthePark.We’re excitedtohaveallthreeofthesebusinessasasponsorsforourmovies. A1.BudgetImpact:The$500sponsorshipcoversthecostofthemovie,thepublicplay licenseandmosquitospraying.Thecommunitycenteroffersconcessionstocoverthe staffcosts.TheSWCCdoesnotchargeustousethemoviescreenasapartnerinthe commission. A2.StaffWorkloadImpact:It’sabusydaypreparingforthemovie:puttingthescreen up,settingupconcessions,sellingconcessions,parkingassistance,securitythrough themovieandthenteardown. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-071approvingthetwo$500sponsorship contributionfromthesebusinesses:SchlennerWenner&CoandOmniVision& Learning/UptownEyecare. 2.Motiontodenyacceptanceofthetwo$500sponsorshipcontributions. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1. D.SUPPORTINGDATA: Resolution#2014-071 ContributionFormsfrom: SchlennerWenner&Co. OmniVision&LearningandUptownEyecare CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-071 RESOLUTIONAPPROVINGCONTRIBUTIONS WHEREAS,theCityofMonticelloisgenerallyauthorizedtoaccept contributionsofrealandpersonalpropertypursuanttoMinnesotaStatutesSections 465.03and465.04forthebenefitofitscitizensandisspecificallyauthorizedtomaintain suchpropertyforthebenefitofitscitizensinaccordancewiththetermsprescribedbythe donor.SaidgiftsmaybelimitedunderprovisionsofMNStatutesSection471.895. WHEREAS,thefollowingpersonsandorentitieshaveofferedtocontribute contributionsorgiftstotheCityaslisted: DONOR/ENTITYDESCRIPTIONVALUE SchlennerandWenner,Co.Cash$500 OmniVision&Learning Center/UptownEyeCare Cash$500 WHEREAS,allsaidcontributionsareintendedtoaidtheCityinestablishing facilities,operationsorprogramswithinthecity’sjurisdictioneitheraloneorin cooperationwithothers,asallowedbylaw;and WHEREAS,theCityCouncilherebyfindsthatitisappropriatetoacceptthe contributionsoffered. NOWTHEREFOREBEITRESOLVED bytheCityCouncilofMonticelloas follows: 1.ThecontributionsdescribedaboveareherebyacceptedbytheCityof Monticello. 2.Thecontributionsdescribedabovewillbeusedasdesignatedbythe donor.Thismayentailreimbursingorallocatingthemoneytoanother entitythatwillutilizethefundsforthefollowingstatedpurpose: DONOR/ENTITYRECIPIENTPURPOSE SchlennerandWenner,Co.CommunityCenterSponsorMovieinthePark OmniVision&Learning Center/UptownEyeCare CommunityCenterSponsorMovieinthePark AdoptedbytheCityCouncilofMonticellothis28thdayofJuly,2014. CITYOFMONTICELLO ______________________________ ClintHerbst,Mayor ATTEST: ______________________________________ JeffO’Neill,CityAdministrator CouncilAgenda:07/28/14 1 5D.Considerationofapprovingapplicationsfora2-daytemporaryliquorlicenseanda charitablegamblingpermitfortheChurchofStHenry’sfallfestivalonSeptember 20-21,2014 (CS) A.REFERENCEANDBACKGROUND: TheChurchofStHenryisrequestingapprovalofanapplicationfora2-daytemporary on-saleliquorlicenseinconjunctionwiththeirannualFallFestivaleventonSeptember 20-21,2014.Inaddition,theyarerequestingapprovalofanapplicationforacharitable gamblingpermitforbingo,rafflesandpull-tabsinconjunctionwiththeFallFestival. Theactivitieswilltakeplaceonthechurchparkinglotandgrounds. StHenry’shasalsoprovidedacertificateofinsuranceshowingliquorliabilitycoverage forthetemporaryon-saleliquorlicense. ToreceiveapermitfromtheState,theCitymustapprovetheapplication.Inthepastthe Cityhasnotopposedtheseexemptgamblinglicenseapplicationsforcharitableevents. A1.BudgetImpact:NA A2.StaffWorkloadImpact:MinimalstafftimetoprocessapplicationwithState AlcoholandGamblingDivisionforapproval. B.ALTERNATIVEACTIONS: 1.Motiontoapprovetheapplicationsforatemporary2-dayliquorlicenseand charitablegamblingpermitfortheChurchofStHenry’sFallFestivaltobeheld onchurchgroundsonSeptember20-21,2014. 2.Motiontonotapprovetheapplicationsfortemporaryliquorlicenseandcharitable gamblingpermit. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1forapprovaloftheapplications. D.SUPPORTINGDATA: Applicationfortemporaryliquorlicense Applicationforcharitablegamblingpermit Copyofcertificateofinsurancefortheevent CityCouncilAgenda:07/28/14 1 5E.Considerationofapprovinganapplicationforacharitablegamblingpermitfora raffletobeconductedbyWrightCounty/WestMetroWhitetailsonSeptember7, 2014 (CS) A.REFERENCEANDBACKGROUND: TheWrightCounty/WestMetroWhitetailsgrouphasappliedforatemporarycharitable gamblingpermitforaraffletobeheldonSunday,September7,2014inconjunctionwith afundraisingeventatRiverCityExtreme.Theyhaveheldasimilarfundraiserfora numberofyearsinMonticello. ToreceiveapermitfromtheState,theCitymustapprovetheapplication.Inthepastthe Cityhasnotopposedtheseexemptgamblinglicenseapplicationsforcharitableevents. B.ALTERNATIVEACTIONS: 1.Motiontoapprovetheapplicationforacharitablegamblingpermitforaraffleto beconductedbytheWrightCounty/WestMetroWhitetailsonSeptember7, 20134atRiverCityExtreme. 2.Motiontodenytheapplicationforacharitablegamblingpermit. C.STAFFRECOMMENDATION: StaffsupportsAlternative#1andisnotawareofanyreasonwhythisapplicationshould notbeapproved. D.SUPPORTINGDATA: ApplicationforExemptGamblingPermit CityCouncilAgenda:07/28/14 1 5F.ConsiderationofadoptingResolution#2014-073statingintenttoreimbursefrom bondproceedsforPhosphorousReductionandOtherImprovementstothe WastewaterTreatmentFacilityandSystem,CityProjectNo.ZZPHOS (WO) A.REFERENCEANDBACKGROUND: TheInternalRevenueServicerequirestheCitytoadoptaresolutiondeclaringtheofficial intenttoreimbursecertainprojectexpendituresfrombondproceeds,iftheCityplansor wouldissuebondstofinanceprojectcosts.Bypassingthisresolutionitwouldallowthe Citytoincludethephosphorousreductionandotherimprovementstothewastewater treatmentfacilityandsysteminafuturebondissue.Withouttheresolution,theproject couldnotbefundedbybonds.AtthistimetheCityisplanningonissuingbondsto financethisproject. A1.BudgetImpact:Byadoptingtheresolution,theCitywouldhavetheabilityto includethephosphorousreductionandotherimprovementstothewastewater treatmentfacilityandsysteminafuturebondissue. A2.StaffWorkloadImpact:Therewouldbenoimpactonthestaffbythisaction. WhentheCityissuesbondstherewouldbestafftimeandconsultantcostsrelated tothebondissue. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-073statingintenttoreimbursefrombond proceedsforthePhosphorousReductionandOtherImprovementstothe WastewaterTreatmentFacilityandSystem,CityProjectNo.ZZPHOS. 2.Motiontonotadoptaresolutiondeclaringtheofficialintenttoreimburse expendituresfromtheproceedsofbondsatthistime. C.STAFFRECOMMENDATION: CitystaffsupportsAlternative#1. D.SUPPORTINGDATA: Resolution#2014-073 1 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-073 DECLARINGTHEOFFICIALINTENTOFTHECITYOFMONTICELLOTO REIMBURSECERTAINEXPENDITURESFROMTHEPROCEEDSOFBONDSTOBE ISSUEDBYTHECITYFORTHEPHOSPHOROUSREDUCTIONANDOTHER IMPROVEMENTSTOTHEWASTEWATERTREATMENTFACILITYANDSYSTEM, CITYPROJECTNO.ZZPHOS WHEREAS,theInternalRevenueServicehasissuedTreas.Reg.§1.150-2providingthat proceedsoftax-exemptbondsusedtoreimbursepriorexpenditureswillnotbedeemedspent unlesscertainrequirementsaremet;and WHEREAS,theCityexpectstoincurcertainexpenditureswhichmaybefinancedtemporarily fromsourcesotherthanbonds,andreimbursedfromtheproceedsofabond; WHEREAS,theCityhasdeterminedtomakethisdeclarationofofficialintent(“Declaration”)to reimbursecertaincostsfromproceedsofbondsinaccordancewiththeReimbursement Regulations. NOW,THEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFTHECITYOF MONTICELLO(THE“CITY”)ASFOLLOWS: 1.TheCityreasonablyintendstomakeexpendituresfortheprojectsdescribedinExhibitA (the“Projects”),andreasonablyintendstoreimburseitselfforsuchexpendituresfromthe proceedsofdebttobeissuedbytheCityinthemaximumprincipalamountdescribedin ExhibitA.Allreimbursedexpenditureswillbecapitalexpenditures,costsofissuanceof thebonds,orotherexpenditureseligibleforreimbursementunderSection1.150-2(d)(3) oftheReimbursementRegulations. 2.ThisDeclarationhasbeenmadenotlaterthan60daysafterpaymentofanyoriginal expendituretobesubjecttoareimbursementallocationwithrespecttotheproceedsof bonds,exceptforthefollowingexpenditures:(a)costsofissuanceofbonds;(b)costsin anamountnotinexcessof$100,000or5percentoftheproceedsofanissue;or(c) “preliminaryexpenditures”uptoanamountnotinexcessof20percentoftheaggregate issuepriceoftheissueorissuesthatfinanceorarereasonablyexpectedbytheCityto financetheprojectforwhichthepreliminaryexpenditureswereincurred.Theterm “preliminaryexpenditures”includesarchitectural,engineering,surveying,bondissuance, andsimilarcoststhatareincurredpriortocommencementofacquisition,constructionor rehabilitationofaproject,otherthanlandacquisition,sitepreparation,andsimilarcosts incidenttocommencementofconstruction. 3.ThisDeclarationisanexpressionofthereasonableexpectationoftheCitybasedonthe factsandcircumstancesknowntotheCityasofthedatehereof.Theanticipatedoriginal expendituresfortheProjectandtheprincipalamountofthebondsdescribedinparagraph 1areconsistentwiththeCity’sbudgetaryandfinancialcircumstances.Nosourcesother thanproceedsofbondstobeissuedbytheCityare,orarereasonablyexpectedtobe, reserved,allocatedonalong-termbasis,orotherwisesetasidepursuanttotheCity’s budgetorfinancialpoliciestopaysuchprojectexpenditures. 4.TheCityAdministratorisauthorizedtodesignateappropriateadditionstoExhibitAin circumstanceswheretimeisoftheessence,andanysuchdesignationshallbereportedto theCouncilattheearliestpracticabledateandshallbefiledwiththeofficialbooksand recordsoftheCityasprovidedinSection3. 5.Thisresolutionisintendedtoconstituteadeclarationofofficialintentforpurposesof Treas.Reg.§1.150-2andanysuccessorlaw,regulation,orruling. ADOPTEDBY theCityCouncilthis28thdayofJuly,2014. CITYOFMONTICELLO __________________________________ ClintHerbst,Mayor ATTEST: __________________________________ JeffO’Neill,CityAdministrator 3 EXHIBITA TOOFFICIALINTENTRESOLUTIONNO.2014-073 ADOPTEDJuly28,2014 DATEOF DECLARATION DESCRIPTIONOFPROJECT MAXIMUM PRINCIPAL AMOUNTOFDEBT FORPROJECT 7/28/14 PHOSPHOROUSREDUCTIONAND OTHERIMPROVEMENTSTOTHE WASTEWATERTREATMENTFACILITY ANDSYSTEM-including,butnotlimitedto, constructionofimprovementsandindirect costs,suchaslegal,engineering, administrative,rightofwayacquisition(land, etc.)andfinancingcosts.Engineeringcosts includessurvey,feasibilitystudy, environmentaldocuments,permitting, preliminaryandfinaldesign,preparationof plansandspecs,biddingadministration, constructionmanagement,staking,inspection andmaterialtesting. $2,500,000 CityCouncilAgenda:7/28/14 1 5G.ConsiderationofadoptingResolution#2014-074authorizingthesubmissionofa PointSourceImplementationGrant(PSIG)applicationforPhosphorusReduction andOtherImprovementstotheWasteWaterTreatmentFacilityandSystem,City ProjectNo.ZZPHOS (WSB) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoconsiderauthorizingsubmissionofaPSIGapplicationfor thephosphorusreductionimprovementsatthewastewatertreatmentfacility(WWTF). ThePSIGprogrammakes50%grantsforimprovementsrelatedtophosphorusreduction. BecausetheCitymustremoveadditionalphosphorusastheresultoftheLakePepin TotalMaximumDailyLoad(TMDL)Study,theCityiseligibletoparticipateinthePSIG program. ThePSIGprogramhasbeenfunded$9millionforfiscalyear2015whichishigher thanthenorm.BoththeMinnesotaPollutionControlAgency(MPCA)andthePublic FacilitiesAuthority(PFA)feelthattheCitymayhavesufficientprioritytobe awardedagrantforphosphorusreductionimprovementsatthewastewatertreatment facility(WWTF). ThePSIGapplicationdeadlineisJuly31,2014.Oneoftheconditionsoftheapplication istheconditionthattheCityCounciladoptaresolutionauthorizingthePSIGapplication. ThegrantswillbeawardedbytheendofAugust,2014. ProjectBackground ThecurrentNPDESpermitfortheWWTFrequiresthatadditionalphosphorusbe removednolaterthanDecember31,2018.Otherpermitconditionsinclude: SubmittalofaFacilityPlantotheMPCAnolaterthanFebruary28,2014 SubmittalofdrawingsandspecificationstotheMPCAnolaterthanMarch30, 2015 Initiationofconstructionofthephosphorusreductionimprovementsnolaterthan June1,2017 TheFacilityPlanwassubmittedbytheduedateandtheMPCAhasissuedapreliminary approvalletter. TheFacilityPlanrecommendedthatchemicaladditionbeinitiatedtoremovethe additionalphosphorusrequiredbytheNPDESpermit.Thefollowingcostestimate appearedintheFacilityPlanforthechemicaladditionsystem. CityCouncilAgenda:7/28/14 2 TableNo.1 ChemPCapitalCost DESCRIPTION ESTIMATED COST($) SixMixers$220,000 ChemicalStorage/FeedSystem$400,000 NewDiffuserMembranes$208,000 Subtotal $828,000 Contingency(20%)$166,000 Subtotal $994,000 Engineering,Legal,Fiscal,andAdministrative(15%)$149,000 TOTALCAPITALCOST $1,143,000 Thecoststhatappearinthetableabovewerebasedon2013pricing.However,bids receivedforwaterandwastewaterworkinothercommunitiesfor2014arerunning significantlyhigherthanlastyear.TheruraldevelopmentengineerfromtheUSDAwas consultedandheindicatedthatcostsforwastewaterworkhaveincreasedsignificantly duetotheincreasedvolumeofwaterandwastewaterworkbeingbid.Therefore,itis anticipatedthatthehigherpricingwillcontinuein2015. ThefollowingcostestimatewillbeusedforPSIGapplicationpurposes: RevisedTableNo.1 ChemPCapitalCost DESCRIPTION ESTIMATED COST($) SixMixers$275,000 ChemicalStorage/FeedSystem$650,000 NewDiffuserMembranes$260,000 Subtotal $1,185,000 Contingency(20%)$237,000 Subtotal $1,422,000 Engineering,Legal,Fiscal,andAdministrative(17.5%)$250,000 TOTALCAPITALCOST $1,672,000 CityCouncilAgenda:7/28/14 3 A1.BudgetImpact:ThecostforWSBtocompletethePSIGapplicationisinthe rangeof$500to$750.Thegrantapplicationwillbecompletedundertheprevious authorizationfortheFacilityPlan. A2.StaffWorkloadImpact:FilingthePSIGapplicationwillnotincreaseCitystaff workload. B.ALTERNATIVEACTIONS: 1.MotionadoptingResolution#2014-074authorizingsubmissionofthePSIG applicationforPhosphorusReductionandOtherImprovementstotheWaste WaterTreatmentFacilityandSystem,CityProjectNo.ZZPHOS. 2.MotiondenyingadoptionofResolution#2014-074atthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsapprovingAlternate#1.AgrantthroughthePSIGprogramwould lowertheCity’scostsofimplementingthemandatedphosphorusreduction improvements. D.SUPPORTINGDATA: Resolution#2014-074 PSIGapplicationnoticeandforms CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-074 AUTHORIZINGSUBMISSIONOFAPOINTSOURCEIMPLEMENTATIONGRANT APPLICATONTOTHEMINNESOTAPUBLICFACILITIESAUTHORITY(PFA) WHEREAS,thePointSourceImplementationProgram,establishedinMinnesotaStatutes 446A.073,asamended,providesfundsforconstructionprojects;and WHEREAS,theCityofMonticelloisherebyapplyingtotheMinnesotaPublicFacilities AuthorityforfundstobeusedforeligiblecostsforPhosphorusReductionandOther ImprovementstotheMonticelloWasteWaterTreatmentFacilityandSystem,CityProjectNo. ZZPHOS; NOWTHEREFORE,BEITRESOLVED,thattheCityofMonticellohasthelegalauthorityto applyforthegrant;andthefinancial,technical,andmanagerialcapacitytoensureproper construction,operation,andmaintenanceoftheprojectforitsdesignlife;and BEITFURTHERRESOLVED,thatuponapprovalofitsapplicationbythePFA,theCityof MonticellomayenterintoanagreementwiththePFAforsaidproject,andtheCityof Monticellocertifiesthatitwillcomplywithallapplicablelawsandregulationsasstatedinall contractagreementsdescribedinthecompliancelistingofthegrantapplication;and BEITFURTHERRESOLVED,theMayorandtheCityAdministrator,ortheirsuccessorsin office,areherebyauthorizedtoexecutesuchagreements,andamendmentsthereto,asare necessarytoimplementsaidprojectonbehalfoftheCityofMonticello. ADOPTEDBY theMonticelloCityCouncilthis28thdayofJuly,2014. CITYOFMONTICELLO _________________________________ ClintHerbst,Mayor ATTEST: ________________________________ JeffO’Neill,CityAdministrator CERTIFICATION STATEOFMINNESOTA COUNTYOFWRIGHT IherebycertifythattheforegoingisatrueandcorrectcopyofResolution#2014-074 dulypassed,adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingon July28,2014andrecordedinminutesofsaidmeeting. ____________________________________ CatherineM.Shuman,DeputyClerk NotaryPublic:_______________________________ Date:___________________________ (STAMP) Minnesota Public Facilities Authority 1st National Bank Building • 332 Minnesota St., Suite W820 • Saint Paul, MN 55101-1378 • USA 651-259-7469 • 800-657-3858 • Fax: 651-296-8833 • TTY/TDD: 651-296-3900 www.mn.gov/deed/pfa An equal opportunity employer and service provider Date: June 20, 2014 Notice: Applications Being Accepted For Point Source Implementation Grant Program Beginning July 1, 2014 through July 31, 2014, the Minnesota Public Facilities Authority (PFA) will accept applications for the Point Source Implementation Grant Program for grant awards in FY 2015. A total of $9.0 million has been appropriated for this program for FY 2015 by the Minnesota Legislature, and the PFA expects unspent funds from previous appropriations to also be available. All eligible projects that expect to be ready for construction by the summer of 2015 are encouraged to apply The Point Source Implementation Grant Program (Minnesota Statutes, Section 446A.073 as amended) provides 50% grants up to $3 million to governmental units to assist with the cost of wastewater treatment or stormwater projects necessary to: • meet wasteload reductions prescribed under a total maximum daily load (TMDL) plan required by Section 303(d) of the federal Clean Water Act; • reduce the discharge of total phosphorus to one milligram per liter or less; • meet any other water quality-based effluent limit established under section Minnesota Statute Section 115.03, subd 1, (e)(8), that is incorporated into a permit issued by MPCA that exceeds secondary treatment limits; or • meet a total nitrogen limit of ten milligrams per liter or less for a land based treatment system. General Requirements This program is jointly administered by the PFA and the Minnesota Pollution Control Agency (MPCA). Eligible projects must be ranked on the MPCA’s 2015 Project Priority List (PPL), and the PFA will reserve funds for applications according to the PPL priority order. To remain eligible for these funds and receive a grant award, Point Source Implementation grant applicants must submit as- bid costs to the PFA and MPCA and receive MPCA certification of the grant eligible portion of the project by June 30, 2015. The determination of eligible costs will include a calculation by the MPCA of the Essential Project Component (EPC) percentage based on existing versus future wastewater needs, which may result in some projects qualifying for less than 50% grants. Grant application forms are available on the PFA website at www.mn.gov/deed/pfa. Completed applications must be postmarked or sent via e-mail no later than July 31, 2014. Questions regarding project eligibility and MPCA certification requirements should be directed to Bill Dunn at 651-757-2324 (bill.dunn@state.mn.us). For questions regarding funding and the application process, contact the appropriate PFA loan officer shown on the enclosed map. Minnesota Public Facilities Authority 1st National Bank Building • 332 Minnesota St., Suite W820 • Saint Paul, MN 55101-1378 • USA 651-259-7469 • 800-657-3858 • Fax: 651-296-8833 • TTY/TDD: 651-296-3900 www.mn.gov/deed/pfa An equal opportunity employer and service provider Minnesota Public Facilities Authority Region PFA Loan Officer 8, 11 Becky Sabie 651-259-7470 rebecca.sabie@state.mn.us 6E, 7E, 7W Kathe Barrett 651-259-7464 kathe.barrett@state.mn.us 9, 10 Anita Gallentine 651-259-7466 anita.gallentine @state.mn.us 1, 2, 3 Nancy Johnson 651-259-7467 nancy.lc.johnson@state.mn.us 4, 5, 6W Steve LaFontaine 651-259-7471 stephen.lafontaine@state.mn.us General Program Questions Becky Sabie 651-259-7470 rebecca.sabie@state.mn.us Feb 2011 Clean Water Fund Point Source Implementation Grant Program FY 2015 Application Minnesota Public Facilities Authority First National Bank Building, Suite W820 332 Minnesota Street Saint Paul, MN 55101-1378 www.mn.gov/deed/pfa FY 2015 Pt. Source Implementation Grant Application June 2014 3 of 18 MINNESOTA PUBLIC FACILITIES AUTHORITY POINT SOURCE IMPLEMENTATION GRANT PROGRAM The Point Source Implementation Grant (PSIG) Program is jointly administered by the Minnesota Public Facilities Authority (PFA) and the Minnesota Pollution Control Agency (MPCA). APPLICATIONS MUST BE POSTMARKED OR SENT VIA E-MAIL NO LATER THAN JULY 31, 2014. The Point Source Implementation Grant Program (Minnesota Statutes, Section 446A.073 as amended) provides 50% grants up to a maximum of $3 million to governmental units to assist with the cost of wastewater treatment or stormwater projects necessary to meet: 1) Wasteload reductions prescribed under an approved total maximum daily load (TMDL) plan; 2) A phosphorus concentration or mass limit that requires discharging one milligram per liter or less at permitted design flow, which is incorporated into a permit issued by the MPCA; 3) Any other water quality-based effluent limit established under Minnesota Statute Section 115.03, Subd 1, (e)(8), that is incorporated into a permit issued by MPCA that exceeds secondary treatment limits; or 4) A total nitrogen limit of ten milligrams per liter or less for a land based treatment system. Eligible projects must be ranked on the MPCA’s 2015 Project Priority List (PPL). The PFA will reserve funds for applications according to PPL priority order. To remain eligible for these funds, Point Source Implementation Grant applicants must submit as-bid costs to the PFA and MPCA and must receive MPCA certification of the grant eligible portion of the project by June 30, 2015. Basic Program Requirements o Applicants must submit the forms and information identified in the top half of the application checklist (page 13). The checklist also identifies items to be submitted prior to grant award and disbursement. o The PFA will reserve grant funds based on the estimated total eligible cost submitted in the application. If as-bid costs are higher, grant awards will be based on the higher cost if sufficient funds are available at the time of award. o Applicants must submit as-bid costs to the MPCA and PFA prior to grant award. As-bid costs are needed by MPCA to certify the project and determine grant eligible construction costs. The determination of eligible costs includes a calculation by the MPCA of the Essential Project Component (EPC) percentage based on existing versus FY 2015 Pt. Source Implementation Grant Application June 2014 4 of 18 future wastewater needs, which may result in some projects receiving less than 50% grants. The MPCA certification is needed prior to grant award. o PFA can reimburse grantees for eligible PSIG non-construction costs as long as those costs have not been paid by other PFA funds. o PFA can reimburse eligible PSIG construction costs back to the date the application was received by PFA. o Construction contingencies are not included in the grant calculation. o Applicants must document that total project funding is in place before the PFA can award the grant. o Grantees must follow the state Uniform Municipal Contracting Law and other applicable requirements (bidding, special requirements for out-of-state contractors, workers compensation, etc.) in the construction of the project. State prevailing wage rates apply to the project (available from the Minnesota Department of Labor and Industry (DOLI), Labor Standards Division 651/284-5091 (www.DOLI.state.mn.us). The DOLI contract conditions included in Appendix A of this Application must be included in all construction contracts for projects that receive PSIG funding. o Grant recipients must pay an application fee to the PFA equal to one-half of one percent of the grant amount. Fees are due at the time of execution of the grant agreement. The fee is not a grant eligible cost. o Grantees must display a sign with the Clean Water Legacy logo at the project site or other public location identifying that the project was built with assistance from the Clean Water, Land, & Legacy Amendment. If it is not practicable to display the sign at the project site, the sign may be displayed in a public location at the Grantee’s office along with a photograph of the project. An example sign layout is contained in this application package. The logo and specifications can be found at: http://www.dnr.state.mn.us/legacylogo/index.html Coordination with PFA Clean Water Revolving Fund Loans Applicants with projects seeking PFA loans though the Clean Water Revolving Fund (also known as the State Revolving Fund, or SRF) in addition to PSIG funds must also follow the CWRF loan application process, including being listed on PFA’s Intended Use Plan (IUP) within fundable range. A separate CWRF loan application must be submitted by the deadline stated in the IUP. FY 2015 Pt. Source Implementation Grant Application June 2014 5 of 18 For Additional Information Minnesota Public Facilities Authority: Contact the appropriate PFA loan officer as shown on the map on the PFA website at www.mn.gov/deed/pfa. Minnesota Pollution Control Agency: Contact the MPCA review engineer for your project or Bill Dunn at the MPCA at 651-757-2324, or see the MPCA web site at www.pca.state.mn.us/PPL for additional information. Application Submittal This file may be saved to your computer and the forms filled out electronically. The forms can then be printed. Applications may be submitted electronically as an e-mail attachment to the appropriate PFA loan officer by July 31, 2014, or by mail (postmarked no later than July 31, 2014) to: MN Public Facilities Authority, 1st National Bank Building, 332 Minnesota Street, Suite W820, St. Paul, MN 55101-1378. If application is submitted as a paper copy, provide 2 copies. Minnesota Public Facilities Authority First National Bank Building, Suite W820 332 Minnesota Street Saint Paul, MN 55101-1378 Phone 651-259-7469 or 1-800-657-3858 (Outside Metro Area) TTY/TDD: 651-296-3900 FAX: 651-296-8833 APPLICATIONS MUST BE POSTMARKED OR SENT VIA E-MAIL NO LATER THAN JULY 31, 2014 FY 2015 Pt. Source Implementation Grant Application June 2014 7 of 18 MINNESOTA PUBLIC FACILITIES AUTHORITY Point Source Implementation Grant Program Form 1 – General Information 1. If the project is not listed on the current (2014) Project Priority List (PPL) Has Applicant submitted a 2015 Project Priority List request for this project? Yes No 2. Applicant Name: DUNS Number: Applicant Contact Person: County: Contact Person Title: Phone: Address: City, Zip: Fax: Authorized Official: E-mail: Does the applicant have an official seal? Yes No Title: 3. Consultants and Advisors Consulting Engineer Name: Phone: Engineering Firm: Fax: Address: City, State, Zip: E-mail: Other Consultant: Phone: Firm: Fax: Address: City, State, Zip: E-mail: 4. MPCA Engineer: Phone: 5. Will a Public Utilities Commission be responsible for operation & maintenance of the project? If yes, provide information below: Yes No PUC Contact Person: Phone: Contact Person Title: Fax: Address: City, Zip: E-mail: 6. Is there a contract/agreement with another entity to operate or manage the sewer system (i.e. private operator agreement)? Yes No 7. Other Proposed Sources of Project Financing (in addition to the Point Source Implementation Grant) Source Amount Requested Contact Person/Phone Status FY 2015 Pt. Source Implementation Grant Application June 2014 8 of 18 MINNESOTA PUBLIC FACILITIES AUTHORITY Point Source Implementation Grant Program Form 2 – Project Information (attach additional sheets if necessary) Brief Description of project to be financed: Check which applies to the project seeking funding: Wasteload reduction prescribed under a TMDL Plan: Phosphorus limit of 1 mg/L or less in MPCA permit: Other water quality-based effluent limit (exceeds secondary treatment limits): Total Nitrogen limit of 10 mg/L or less (land based treatment): Receiving Water: Title and year of Approved TMDL (if applicable): Identify/name pollutant: Project timeframe. Provide estimated or actual dates for: Submission of Plan and Specification to PCA: Advertising for Bids: Open bids: Award bids: Start Construction: End Construction: Specify the sources of revenue that will be used to operate and maintain the system. Include copy of current sanitary and storm sewer rate ordinances. Does the applicant have a contract with a private vendor to operate the facility? If so, please identify who the contract is with and the duration of the contract. FY 2015 Pt. Source Implementation Grant Application June 2014 9 of 18 Minnesota Public Facilities Authority Point Souce Implementation Grant Program Form 3 - Point Source Implementation Project Costs Applicant:Date: Project: COLUMN A COLUMN B COLUMN C Start Date End Date 1.Non-Construction Costs Planning -$ Engineering Design -$ Other Engineering/Inspection -$ Legal/Financing Related Fees -$ Land -$ Non-Construction Subtotal -$ -$ -$ 2.Construction Costs Treatment -$ Collection -$ Other: -$ Other: -$ Service Connections(1)-$ Construction Subtotal -$ -$ -$ 3.-$ Total -$ -$ -$ Estimated Pt. Source Impl Grant: 50% of Column A(3) -$ Notes: (1)In some cases, service connections may be eligible. Discuss with PFA loan officer. (2)Construction Contingencies not eligible for Point Source Implementation Grant Funds. (3)Grant calculation subject to MPCA Essential Project Component (EPC) percentage, which may result in some projects receiving less than 50% grants. Point Souce Implementation Grant Program Eligible Costs Other Project Costs (Non-PSIG Costs) Total Project Costs Contingencies (2) ATTACH A DETAILED BREAKDOWN of the estimated construction costs for the Point Source Implementation project on a separate sheet (see next page). The Minnesota Pollution Control Agency will determine the grant eligible portion of the total construction costs. The PFA will determine the final grant amount. Use the “Other” budget columns to identify costs not associated with the Point Source Implementation eligible costs (i.e. costs associated with a larger project or items not within the scope of the Point Source Implementation project) COLUMN A: Include the TOTAL ESTIMATED COSTS necessary to comply with the TMDL; to reduce the discharge of total phosphorus to one milligram per liter or less; to address the water quality-based effluent limits; or to meet a total nitrogen limit of 10 mg/L for land based treatment. COLUMN B: Identify other ESTIMATED PROJECT COSTS not related to meeting the Point Source Implementation Grant Program requirements. COLUMN C: Identify the TOTAL ESTIMATED PROJECT COSTS FY 2015 Pt. Source Implementation Grant Application June 2014 10 of 18 Estimated Construction Cost Breakdown for Point Source Implementation Projects (Attach additional sheets if needed) If the overall project involves more than just PSIG related work, please identify how various construction cost categories (mobilization, buildings, etc.) are attributed to Point Source Implementation eligible activities. Please use whatever format best describes the Point Source Implementation costs. Briefly describe how the Point Source Implementation project costs are related to:  an established TMDL wasteload allocation or permit limit  a phosphorus concentration or mass limit  other water quality-based effluent limit  a total nitrogen limit of 10 mg/L or less for land-based treatment FY 2015 Pt. Source Implementation Grant Application June 2014 11 of 18 MINNESOTA PUBLIC FACILITIES AUTHORITY Point Source Implementation Grant Program Form 4 – Compliance with Laws, Rules and Regulations Point Source Implementation grantees are required to comply and ensure their contractor(s) comply with certain state laws, rules and regulation s including but not limited to those described below which will be invoked as a condition of the grant. 1. Minnesota Statutes, Section 16B.31, subdivision 2 requires that all project funding be in place prior to execution of grant agreement. 2. Minnesota Statutes, Section 181.59, discrimination on account of race, creed, or color prohibited in contracts. Minnesota Statutes, Section 363A.08 prohibits unfair discrimination practices related to employment or unfair employment practices. 3. Minnesota Statutes, Section 471.345 Uniform Municipal Contracting Law. 4. Minnesota Statutes Chapter 363 Minnesota Human Rights Act. Requires that all public services be operated in such a manner that does not discriminate against any person in the access to, admission to, full utilization of or benefit from such public service. 5. Minnesota Statutes, Sections 176.181 - 176.182. Requires recipients and subcontractors to have worker's compensation insurance coverage. 6. Minnesota Statutes, Sections 177.41-177.43, prevailing wage rate law. Requires contractors to pay laborers and mechanics prevailing wages established by the Minnesota Department of Labor and Industry for public works projects. 7. Minnesota Statutes 290.9705. Requires that 8 percent of payments made to out-of-state contractors be withheld once cumulative payments made to the contractor for work done in Minnesota exceed $50,000 in a calendar year, unless an exemption is granted by the Department of Revenue. 8. Laws of Minnesota 2014 Chapter 253. Responsible Contractor Requirements. Solicitation documents must include the specified language for all contracts advertised after January 1, 2015 (https://www.revisor.mn.gov/laws/?id=253&doctype=Chapter&year=2014&type=0). 9. Laws of Minnesota 2010 Chapter 361, article 3, section 5(b). Clean Water Fund sign posting requirements. The certifies that it has or will comply with the above requirements. (Name of Grantee) (Signature of Authorized Official) Date FY 2015 Pt. Source Implementation Grant Application June 2014 13 of 18 MINNESOTA PUBLIC FACILITIES AUTHORITY Point Source Implementation Grant Program Checklist – Form 5 SUBMITTAL ITEMS REQUIRED BY JULY 31, 2014: Grant Application Forms  Form 1 - General Information  Form 2 - Project Information  Form 3 – Point Source Implementation Grant Project Costs (excel document)  Form 4 - Signed Compliance with Laws, Rules & Regulations  Form 5 - Point Source Implementation Grant Checklist Resolution of governing body of the municipality authorizing submission of the application (example attached) Project schedule indicating that construction will begin prior to June 30, 2015 Identification of the estimated construction cost breakdown and related costs necessary to comply with the: Total Maximum Daily Load wasteload reduction, or Phosphorus concentration/mass limit 1 mg/L in the MPCA permit, or Total nitrogen limit of 10 mg/L or less (for land treatment), or Other water quality-based effluent limit that exceeds secondary treatment limits in MPCA permit SUMBITTAL ITEMS REQUIRED PRIOR TO GRANT AWARD (NOT REQUIRED BY JULY 31, 2014): MPCA submittal items: Project plans and specifications (for review and approval) As-bid cost documentation (for determination of eligible construction costs) PFA submittal items (for PFA approval) prior to grant award: Documentation that complete project funding is in place As-bid costs and bid tabulations Copy of adopted/enacted sewer service charge system and ordinance Inter-municipal Agreement (enacted) if more than one municipality is involved in project Management Contract: If the borrower has engaged a private contract operator to manage its wastewater system, submit a copy of the management contract. MPCA project certification (provided by MPCA) PFA SUBMITTAL ITEMS REQUIRED PRIOR TO GRANT DISBURSEMENT (NOT REQUIRED BY JULY 31, 2014): Payment of application fee (one-half of one percent of grant amount) Disbursement Request Form and supporting documentation for eligible expenses FY 2015 Pt. Source Implementation Grant Application June 2014 17 of 18 APPENDIX A Minnesota Public Facilities Authority Point Source Implementation Grants State of Minnesota Prevailing Wages Include this language in all construction contracts: Pursuant to Minnesota Statutes 177.41 to 177.44 and corresponding Rules 5200.1000 to 5200.1120, this contract is subject to the prevailing wages as established by the Minnesota Department of Labor and Industry. Specifically, all contractors and subcontractors must pay all laborers and mechanics the established prevailing wages for work performed under the contract. Failure to comply with the aforementioned may result in civil or criminal penalties. The applicable wage determination must be incorporated into proposals and all contracts. Payrolls/Records The contractor and subcontractor shall furnish to the OWNER copies of any or all payrolls not more than 14 days after the end of each pay period. The payrolls must contain all of the data required by Minnesota Statutes Section 177.30. Subcontractors must furnish payrolls to the contractor. The OWNER may examine all records relating to wages paid laborers or mechanics on work to which Minnesota Statutes Sections 177.41 to 177.44 apply. Posting of Wage Rates/Required Posters Each contractor and subcontractor performing work on a public project shall post on the project the applicable prevailing wage rates and hourly basic rates of pay for the county or area within which the project is being performed, including the effe ctive date of any changes thereof, in at least one conspicuous place for the information of the employees working on the project. The information so posted shall include a breakdown of contributions for health and welfare benefits, vacation benefits, pension benefits, and any other economic benefits required to be paid. For more information regarding prevailing wage and its application, contact: Minnesota Department of Labor and Industry Prevailing Wage unit 443 Lafayette Road N. St. Paul, MN 55155 Phone: (651) 284-5091 E-mail: dli.prevwage@state.mn.us Web: www.DOLI.state.mn.us FY 2015 Pt. Source Implementation Grant Application June 2014 18 of 18 This project is financed by the Minnesota Public Facilities Authority including funds from the Clean Water, Land, and Legacy Amendment CityCouncilAgenda:07/28/14 1 5H.ConsiderationofadoptingResolution#2014-073authorizingpreparationofplans andspecificationsandconstructionservicesforPhosphorusReductionandOther ImprovementstotheWasteWaterTreatmentFacilityandSystem,CityProjectNo. ZZPHOS (WSB) A.REFERENCEANDBACKGROUND: ThecurrentNPDESpermitforthewastewatertreatmentfacility(WWTF)requiresthat additionalphosphorusberemovednolaterthanDecember31,2018.Otherpermit conditionsinclude: SubmittalofaFacilityPlantotheMinnesotaPollutionControlAgency(MPCA) nolaterthanMarch1,2014 Submittalofplansandspecificationsforthephosphorusreductionimprovements totheMPCAnolaterthanMarch30,2015 Initiationofconstructionofthephosphorusreductionimprovementsnolaterthan June1,2017 TheFacilityPlanwasapprovedbytheCityCouncilattheFebruary24,2014meetingand submittedtotheMPCAbytheduedate.TheMPCAhasreviewedtheFacilityPlanand hasissuedapreliminaryapprovalletter.TheFacilityPlanrecommendedthatchemical additionbeinitiatedtoremovetheadditionalphosphorusrequiredbytheNPDESpermit. Asnotedabove,anNPDESpermitrequirementisthatplansandspecificationsforthe phosphorusreductionimprovementsmustbesubmittedtotheMPCAnolaterthanMarch 30,2015.Inordertomeetthatdate,authorizationtoproceedwithpreparationofthe plansandspecificationsisneeded.Also,incommunicationwithKatheBarrettofthe PFA,itwaslearnedthatoneoftherequirementstoreceiveanFY2015PSIG(seeAgenda Item#5G)isreadinesstoproceedtoconstructionbyearlysummerof2015.Tomeetthat requirement,plansandspecificationsshouldbesubmittedtotheMPCAbytheendof 2014.Theenclosedletterproposalthatdetailsthenextstepstocompletetheplansand specifications.Constructionservicesisalsoincludedintheproposaltoidentifythe completeservicesneedtoconstructtheproject. A1.BudgetImpact:Theestimatedfeetoprepareplansandspecificationsand performconstructionservicesis$197,070.00asdetailedintheenclosedletter proposal. Theestimatedprojectcostwhichincludes20%contingencycostsand15% indirectcostsforengineering,legal,fiscal,andadministrativeis$1,672,000.The CitymaybeeligibleforalowinterestloanthroughthePublicFacilitiesAuthority (PFA).WSBhasworkedwiththeMPCAtoplacethephosphorusreduction improvementsprojectontheprojectprioritylist(PPL)foraPFAloan.However, withapointtotalofonly41points,theprojectmaynotbeeligibleforanFY2015 PFAloan.Asnotedabove,theprojectmaybeeligibleforanFY2015PSIG, though,duetothehigherthannormalamountofPSIGprogramfundingavailable CityCouncilAgenda:07/28/14 2 forFY2015.IfthecombinationofPFAloanandthePSIGarenotadequateto covertheprojectcostof$1,672,000,thesaleofgeneralobligationbondsisthe remainingfinancingalternative. A2.StaffWorkloadImpact:StafffromtheEngineering,WastewaterTreatment PlantandFinanceDepartmentswillbeimpactedbythisprojecttovarying degrees. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-073authorizingpreparationofplansand specificationsandconstructionservicesforPhosphorusReductionandOther ImprovementstotheWasteWaterTreatmentFacilityandSystem,CityProject No.ZZPHOS. 2.Motiontodenyauthorizationtoprepareplansandspecsatthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsapprovingAlternative#1giventheNPDESpermitrequirementof submittalofplansandspecificationsbyMarch30,2015andtheneedtohavetheproject readytoproceedtoconstructionbyearlysummerof2015ifagrantthroughthePSIG programissecured. D.SUPPORTINGDATA: Resolution#2014-075 WSBLetterofProposal ExcerptfromFebruary24,2014CityCouncilminutes CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-073 AUTHORIZINGPREPARATIONOFPLANSANDSPECIFICATIONSANDPERFORM CONSTRUCTIONSERVICESFORPHOSPHORUSREDUCTIONANDOTHER IMPROVEMENTSTOTHEWASTEWATERTREATMENTFACILITYANDSYSTEM CITYPROJECTNO.ZZPHOS WHEREAS,theCity’sNPDESpermitfortheWastewaterTreatmentFacilityrequiresannual massloadingofphosphorustotheMississippiRiverbereducedtonomorethan5,740pounds peryearnolaterthanDecember31,2018;and WHEREAS,theMonticelloCityCouncilheldaPublicHearingonFebruary24,2014,wherea PhosphorusReductionFacilityPlanAmendment,tomaintaincompliancewithNPDESpermit requirements,wasconsideredandapprovedandsaidPlanAmendmentwassubmittedtothe MinnesotaPollutionControlAgencypriortoMarch1,2014;and WHEREAS,theCityproposestomakeimprovementstotheWastewaterTreatmentFacilityand SystemforphosphorusreductionandotherrelatedimprovementsasidentifiedinthePhosphorus ReductionFacilityPlanAmendment; NOWTHEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFMONTICELLO, MINNESOTA: 1.Saidimprovementsarenecessary,cost-effective,andfeasibleasidentifiedinthe PhosphorusReductionFacilityPlanAmendment. 2.Theconsultingengineers,WSB&Associates,Inc.areherebydirectedtoprepareplans andspecificationsforsaidimprovementsandperformconstructionservicesdetailedin theirproposalatanestimatedcostof$197,070. 3.WSB&Associates,Inc.shallcomplywiththeadditionalrequirementsoftheNPDES permitindirectingthisproject: Submittalofthedrawingsandspecificationsforthephosphorusreduction improvementstotheMinnesotaPollutionControlAgencyforreviewnolaterthan March30,2015. InitiationofconstructionoftheimprovementsnolaterthanJune1,2017. 4.ProjectcostsforthePhosphorusReductionandOtherImprovementstotheWasteWater TreatmentFacilityandSystem,CityProjectNo.ZZPHOSareestimatedat$1,672,000 whichincludes20%contingencyand15%forindirectcosts. ADOPTEDBY theMonticelloCityCouncilthis28thdayofJuly,2014. CITYOFMONTICELLO _________________________________ ClintHerbst,Mayor ATTEST: ________________________________ JeffO’Neill,CityAdministrator engineering planning environmental construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 Equal Opportunity Employer wsbeng.com K:\01494-730\Admin\Docs\Agenda Items\LTR PROP-07182014 Phosphorus Reduction-hmcc-07182014 SKB.doc July 23, 2014 Honorable Mayor and City Council City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Proposal for Design, Bidding, and Construction Services of Wastewater Treatment Facility (WWTF) Improvements for Phosphorus Reduction City of Monticello, MN Dear Honorable Mayor and City Council: WSB & Associates, Inc. (WSB) is pleased to present this proposal for professional engineering services as they relate to the design, bidding, and construction of the phosphorus reduction improvements. The proposed scope of services presented in this proposal is based on our discussions with City staff and the following project understanding. PROJECT UNDERSTANDING The City’s NPDES permit for the WWTF requires that the annual mass loading of phosphorus to the Mississippi River be reduced to no more than 2,608 kilograms (5,740 pounds) per year no later than December 31, 2018. Currently, the WWTF discharges approximately 15,300 pounds of phosphorus to the river annually. Therefore, the WWTF will have to remove an additional 9,560 pounds of phosphorus per year, or 62% of the current discharge. Additional requirements of the NPDES permit include:  Submittal of the drawings and specifications for the phosphorus reduction improvements to the Minnesota Pollution Control Agency for review no later than March 30, 2015  Initiation of construction of the improvements no later than June 1, 2017 The Phosphorus Reduction Facility Plan Amendment prepared by WSB recommended that either aluminum sulfate (alum) or ferric chloride be added to the sequencing batch reactor (SBR) basins to precipitate the additional phosphorus that must be removed. The proposed chemical addition system will consist of the following items:  A small building to house the chemical storage/feed system  Two 3,000 gallon bulk storage tanks  Day tank  Containment for the bulk storage and day tanks  Scale to weigh the amount of chemical being fed  Chemical feed pumps Honorable Mayor and City Council July 28, 2014 Page 2 K:\01494-730\Admin\Docs\Agenda Items\LTR PROP-07182014 Phosphorus Reduction-hmcc-07182014 SKB.doc  Chemical feed lines to each of the three SBR basins  Two mixers in each of the SBR basins Although replacement of the aeration diffuser membranes in the SBR basins is not required to remove additional phosphorus, the manufacturer of the membranes has recommended that they be replaced due to their age (the membranes went into service in 1997). The scope of the phosphorus reduction improvements also includes membrane replacement. PROJECT APPROACH/SCOPE OF SERVICES WSB’s project scope and proposed work plan are based on our understanding of the project, discussions with City staff, and experience on similar projects. The work plan has been separated into key components which are discussed below: 1. Project Management and Coordination 1.1 Project Management Project management is a key task included in each phase of the project. For each phase, this task consists of management and administration, project coordination and communication with the City of Monticello. Additional work included as part of this task involves attending meetings with City staff, WSB, subconsultants of WSB, and Veolia staff, as well as City Council meetings for acceptance of the plans and specifications, authorization to bid the project, and award of the contract. Proper completion of this task will allow for open lines of communication and routine updates on project issues, as well as keeping the project on schedule and within budget. 2. Phosphorus Reduction Improvements 2.1 Preliminary Design The first step during preliminary design will be to conduct jar testing of the wastewater in the SBR basins to determine whether alum or ferric chloride should be fed. Wastewater samples will be taken from the SBR basins during the settling step of the SBR sequence. Alum and ferric chloride will then be added to the wastewater samples at various doses. Following mixing and reaction time, the samples will be tested for phosphorus concentration. Sludge production will also be monitored. Based on the amount of chemical being added and the cost thereof, settling characteristics, and sludge production, either alum or ferric chloride will be selected as the most cost-effective chemical to be added. The filtrate from the screw press is high in phosphorus. Jar testing will also be conducted on the filtrate to determine if it would be cost-effective to add either alum or ferric chloride to the filtrate prior to it being pumped back to the SBR basins for treatment. The annual volume of filtrate will be approximately six million gallons (mg) following chemical addition. The annual volume of wastewater processed is approximately 400 mg. It may prove to be cost-effective to install a small chemical feed system in the screw press building to treat this much smaller volume than to re- introduce it with its high phosphorus concentration into the much greater wastewater volume and then treat for phosphorus. Honorable Mayor and City Council July 28, 2014 Page 3 K:\01494-730\Admin\Docs\Agenda Items\LTR PROP-07182014 Phosphorus Reduction-hmcc-07182014 SKB.doc The preliminary design phase of the phosphorus reduction improvements project will consist of the following tasks directly performed by WSB and sub-consultants:  Conduct jar testing of the wastewater and screw press filtrate  Select either alum or ferric chloride as the chemical to be fed  Provide site surveying and base map preparation  Prepare a preliminary site and building layout for the chemical storage/feed building  Prepare preliminary layouts for chemical feed line and mixer installation 2.2 Final Design The final design phase of the phosphorus reduction improvements project will consist of the following tasks performed directly by WSB and sub-consultants:  Prepare final construction drawings and specifications based upon preliminary design conclusions and discussions with City staff  Review final construction drawings and specifications with City staff  Provide an opinion of probable construction cost to reflect specified equipment, structural components, and final design details  Submit the final construction drawings and specifications to the Minnesota Pollution Control Agency (MPCA) for review. Respond to questions and comments from the MPCA and receive approval of the drawings and specifications 2.3 Bidding The bidding phase of the phosphorus reduction improvements project will consist of the following tasks performed directly by WSB and sub-consultants:  Print bidding documents, construction drawings, and specifications  Distribute bidding documents, construction drawings, and specifications to prospective bidders  Maintain bidders list  Respond to bidder questions  Issue addenda if required.  Attend bid opening and prepare bid tabulation  Evaluate bids  Recommend award of contracts 2.4 Construction Administration The construction phase of the phosphorus reduction improvements project will consist of the following tasks performed directly by WSB and sub-consultants:  Organize, coordinate, lead, and attend the preconstruction conference and regular progress meetings during construction. Provide and distribute meeting minutes  Assist the City in procuring testing services as defined in the contract documents  Establish reference points for construction staking of the project by Contractor (one time)  Review Contractor submittals (shop drawings) for products and equipment Honorable Mayor and City Council July 28, 2014 Page 4 K:\01494-730\Admin\Docs\Agenda Items\LTR PROP-07182014 Phosphorus Reduction-hmcc-07182014 SKB.doc  Respond to Contractor requests for information (RFIs). Issue contract document clarifications as required  Process contract change order requests  Review Contractor-submitted construction progress schedules  Process Contractor pay requests  Provide part-time construction observation services during the construction of the facilities  Provide substantial completion punch list for the Contractor and issue certificate of substantial completion when appropriate for the facility construction  Review final submittals from the Contractor with respect to conformance with the contract documents  Process final pay request and project close-outs 2.5 Equipment Start-up The start-up phase of the phosphorus reduction improvements project will consist of the following tasks performed directly by WSB and sub-consultants:  Assist with equipment start-up  Provide assistance in refining or adjusting equipment and/or systems  Provide assistance in developing procedures for recordkeeping for the equipment 2.6 Post Construction Phase Engineering Services The post construction phase of the phosphorus reduction improvements project will consist of the following tasks performed by WSB and sub-consultants:  Provide record drawings  Assemble an operation & maintenance manual for the facility  Visit the project to observe any apparent defects in the completed work and assist the City in working with the Contractor to correct defects  Along with City staff, perform an end of correction period warranty inspection of the project in the 23rd month following final completion of the project to determine if items of construction are subject to correction  Complete and submit a one-year performance certification report to the MPCA  Complete a two-year certification report for the facility CITY OF MONTICELLO TASKS In order to complete our tasks, WSB will need the City to provide the following:  Provide a designated project contact person  Provide answers to specific project questions, provide requested information, and make decisions regarding project direction during the course of the project  Choose facility configuration early in the project  Provide permitting and governmental review fees that may be necessary  Attend meetings when requested  Procure necessary testing services as defined in the contract documents Honorable Mayor and City Council July 28, 2014 Page 5 K:\01494-730\Admin\Docs\Agenda Items\LTR PROP-07182014 Phosphorus Reduction-hmcc-07182014 SKB.doc ASSUMPTIONS WSB tasks and estimated fees are based on the following assumptions:  The architectural finish of the chemical storage/feed building will be similar to that of the SBR building  An operation & maintenance manual, beyond the information supplied by the Contractor, is not included in the project  Potential bidders will be charged a fee for each copy of the bidding documents. WSB will retain this fee  Part-time field construction observation assumes a 9-month construction period. Eighty hours are estimated for this work, however these hours could be increased or decreased, dependent on the timeframe of construction and contractor performance.  Periodic field construction observation by project design team members assumes periodic site visits over a 9-month construction period WSB SUBCONSULTANTS WSB subconsultants and their area of responsibility are indicated below:  Barr Engineering (electrical)  Wentz Associates, Inc. (HVAC and plumbing)  DJ Medin (architectural)  AET (geotechnical investigation and recommendations) Our scope includes the management of the sub -consultants and their efforts. Sub-consultant billings pass through WSB without mark -up. SCHEDULE In consideration of the effort required to complete the project as presented and based on discussions with City staff, the following preliminary schedule is proposed. This schedule may be revised as the project progresses. City Council Authorizes Design .......................................................................................... July 28, 2014 Prepare Drawings and Specifications....................................................... August 2014—December 2014 City Council Approves Plans and Specifications/Authorizes Ad for Bid and Submit to MPCA if PSIG approved ................................................................................................. December 2014 Bids Received .......................................................................................................................... April 2015 City Council Awards Contract .................................................................................................. May 2015 Construction Start ..................................................................................................................... June 2015 Substantial Completion (Phosphorus Reduction Equipment Operating) ............................... March 2016 Final Completion (Site Restoration) ......................................................................................... June 2016 Honorable Mayor and City Council July 28, 2014 Page 6 K:\01494-730\Admin\Docs\Agenda Items\LTR PROP-07182014 Phosphorus Reduction-hmcc-07182014 SKB.doc PROPOSED FEE WSB will complete the design, bidding, and construction services for the phosphorus reduction system on an hourly basis with a not-to-exceed fee of $197,070.00 which includes $4,600 in sub-consultant fees. We will review our progress monthly and will not exceed this amount without your prior approval. This letter represents our entire understanding of the project scope. If you are in agreement, please sign on the space provided and return one original signed copy to us for our records. We will start immediately upon receipt of the signed agreement. If you have any questions concerning the work plan or fee as discussed herein, please feel free to contact me at 763-541-4800. We look forward to working with you and greatly appreciate the opportunity to assist the City in the completion of this project. Sincerely, WSB & Associates, Inc. Bret A. Weiss, PE Thomas A. Roushar, PE President Senior Project Manager Attachment srb ACCEPTED BY: City of Monticello Name Title Date CityCouncilAgenda:07/28/14 1 5I.ConsiderationofacceptingproposalandawardingcontracttoWrightHennepin Servicesfor2014StreetLightingImprovements(West7th StreetbetweenElmStand CR39),CityProjectNo.14C001 (SB) A.REFERENCEANDBACKGROUND: OnJuly14,2014,theCityCouncilreviewedremainingareasrecommendedforstreet lighting.TheCouncilselectedmovingforwardwithinstallingLEDstreetlightingonW 7th StreetbetweenCR39aspartofthe2014StreetLightingImprovementproject.This projectisacontinuationoflightingmajorstreetcorridorsandthelightingof7th Street betweenMinnesotaStreetandElmStreetthatoccurredin2013. TheCouncilalsoselectedlightingElmStreetbetween6th Streetand7th Street.Xcel EnergyownsandmaintainstheexistinglightingalongElmStreetanditisrecommended tohaveXcelEnergyinstalllightfixturesontheexistingpolestomatchwhatalready existsalongElmStreet.Uptothreelightsarerecommendedtolightthecorridor.The lightswouldnotbeLED,buthighpressuresodiumlightingwithacobraheadtype fixture(seeenclosedpicture).XcelEnergywouldfurnishandinstallthelightswiththe Citypayingonlythemonthlyelectricchargesofapproximately$10perlight. StaffreceivedaquotefromWrightHennepinElectricServicesfor$118,194forlighting 7th StreetbetweenCR39andElmStreet.Thisincludes13LEDlightassemblies(130 watt)thatare25-feettallwithaluminumpolesalternatingonbothsidesofthestreet.The lightfixtureswouldmatchtheexistinglightsalongthenewW7th Streetwith approximately200-footspacing.Thestreetlightswouldbewiredandwouldincludea brackettoaccommodatefuturesidewalklightingforfuturedevelopmentonthenorthand southsidesofW7th Street. A1.BudgetImpact:TheestimatedconstructioncosttofurnishandinstallLED lightingonW7th Streetis$118,194asdescribedabove.Approximately$130,000 isallocatedeachyearforstreetlightingimprovementsthroughtheelectric franchiseagreementstofundtheCity’sstreetlightingprogram.Thefundbalance intheStreetLightingImprovementFundisapproximately$800,000.Finance recommendsmaintainingalevelofsustainableannualexpendituresforstreet lightingimprovements. TheCitycanalsoenterintoamaintenancecontractwithWHServicesthatwill startone-yearafteracceptanceoftheproject.Thecontractisfora5-yearperiod howevertheCitycanoptoutofthemaintenancecontractwithoneyear’swritten noticetoWHServices.PublicWorksiscontinuingtoevaluateifitisbeneficial tocontinuethemaintenancecontractwithWHElectricServicesorcontractwith anelectricianonanannualbasisforallLEDlightingmaintenanceneeds. WrightHennepinElectricServicesisproposingtomaintainthe13proposedLED lightsalong7th Streetatarateof$8.50permonthperlight,whichtotals$110.50 permonth.Staffrecommendsdelayingenteringintoamaintenancecontractwith WHServicesuntiltheprojectiscompleteandaccepted. CityCouncilAgenda:07/28/14 2 A2.StaffWorkloadImpact:EngineeringandPublicWorksstaffwillcontinueto managetheproject. B.ALTERNATIVEACTIONS: 1.Motiontoacceptproposalandawardingcontractintheestimatedamountof $118,193.75toWrightHennepinServicesfor2014StreetLightingImprovements (West7th StreetbetweenElmStandCR39),CityProjectNo.14C001. 2.Motiontodenyawardingacontractatthistime. C.STAFFRECOMMENDATION: StaffrecommendsAlternate#1.SincetheextensionofW7th Streetin2013,therehas beenanincreaseintrafficalong7th StreetbetweenElmStreetandCR39andElmStreet northof7th Street.Futuredevelopmentintheseareaswillgeneratemoretrafficandit wouldbeadvantageoustofinishlightingofthe7th Streetcorridorwhilealsomeetingthe City’sobjectiveoflightingallcollectorroadwayareas. StaffwillcoordinatewithXcelEnergytohavelightinginstalledontheexistingpoles alongElmStreetbetween6th Streetand7th Street. D.SUPPORTINGDATA ProposalfromWright-HennepinServices PictureofexistinglightingalongElmStreet CityCouncilAgenda:07/28/14 1 5J.ConsiderationofadoptingResolution#2014-072approvingLot1,Block1,90th StreetThirdAddition (PID155-185-001010),ataxforfeitparcel,tobereleasedfor publicsale/auction (AS/CS) A.REFERENCEANDBACKGROUND: Councilisaskedtoapprovethereleaseofavacantparcelof1.58acres,describedasLot 1,Block1of90th StreetThirdAddition,togothroughthetaxforfeitauctionprocess. Citystaffhasreviewedpotentialusesandfeelsthatthispropertyisbestsuitedforprivate development;thusarecommendationthattheparcelshouldbereleasedbacktoWright Countyforpublicauction/sale.TheparcelislocatedalongChelseaRoadWestonthe southwestcorneroftheQualityRVdealership.Itislikelythatthis1.58acreparcel wouldbepurchasedforfuturedevelopment,puttingthepropertybackonthetaxrolls. Thisvacantparcelwaspreviouslyvaluedatover$200,000bytheCounty. TheCityfirstreceivednotificationfromWrightCountyoftaxforfeitedparcelson February4th.Thisparcel,previouslyownedbyJacob’sHolding,wasincludedinthe grouptobeputupforpublicauctionorconveyedtotheCity.OnMarch10th,Council approvedholdingthislotforsixmonthstoresearchthepossibilityofusingthisparcelfor afuturepublicpurpose(i.e.cityfacility/infrastructure).The“hold”expiresSeptember 10,2014,whichallowsadequatetimetomakeadecisionandsendtheappropriate paperworktoWrightCountytoreleasethisparcelbacktothetaxforfeitlist,ifthatisthe directionofCouncil. ItshouldbenotedthattheCityownsasmallparcelof.27acresimmediatelyadjacentto thelargertaxforfeitparcel.Thismayhavepotentialinfuturedevelopmentofthelarger parcel.Anaerialofthetaxforfeitparcelandsurroundinglotsisincludedwithsupporting data. A1.BudgetImpact:Noneatthistime. A2.StaffWorkloadImpact:Minimalstafftimeforreview. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-072approvingthereleaseofLot1,Block1, 90th StreetThirdAddition(Parcel155-185-001010)forpublicauction/saleby WrightCounty. 2.MotiontodenyResolution#2014-072atthistimeanddirectstafftotakeother action. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1. CityCouncilAgenda:07/28/14 2 D.SUPPORTINGDATA: Resolution#2014-072 AerialofLot1,Block1,HillsideFarm3rd andsurroundingparcels ExcerptfromMNRulesforDelinquentRealPropertyTaxes–authorizedpublicuse CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-072 APPROVINGRELEASEOFLOT1,BLOCK1,90th STREETTHIRDADDITION TOWRIGHTCOUNTYFORPUBLICSALE/AUCTION PID155-185-001010 WHEREAS,Lot1,Block1of90th StreetThirdAdditionlocatedintheCityofMonticelloand identifiedasPID155-185-001010hasbeenforfeitedtotheStateofMinnesotafornon-payment oftaxesandiseligibleforpublicauctionunderMNStateStatutes,Chapter282;and WHEREAS,theCityofMonticellohasreviewedthisparcelanddeterminedthatanauthorized publicuseasidentifiedintheStateofMinnesotaRulesforDelinquentRealPropertyTaxes cannotbeestablishedatthistime; NOWTHEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFMONTICELLO, MINNESOTA:thatthefollowingtaxforfeitparcelisherebyreleasedfromholdforpublic auction/sale: Lot1,Block1,90th StreetThirdAddition. ADOPTEDBY theMonticelloCityCouncilthis28th dayofJuly,2014. CITYOFMONTICELLO _________________________________ ClintHerbst,Mayor ATTEST: ________________________________ JeffO’Neill,CityAdministrator CERTIFICATION STATEOFMINNESOTA COUNTYOFWRIGHT IherebycertifythattheforegoingisatrueandcorrectcopyofResolution#2014-072 dulypassed,adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingon July28th,2014,andrecordedinminutesofsaidmeeting. ____________________________________ CatherineM.Shuman,DeputyCityClerk NotaryPublic:_______________________________ Date:___________________________ (STAMP) Wright County, MN Date Created: 7/24/2014 Parcel ID 155185001010 Sec/Twp/Rng 10-121-25 Property Address Alternate ID n/a Class 983 - COUNTY ADMINISTERED Acreage n/a Owner Address STATE OF MN TAX FORFEITURE %WRIGHT CTY AUDITOR 10 2ND ST NW ROOM 230 BUFFALO, MN 55313 District n/a Brief Tax Description Sect-10 Twp-121 Range-025 90TH STREET 3RD ADDN Block-001 TH PRT OF LT 1 BLK 1 WH LIES NELY OF VACATED CHELSEA COURT AS DEDICATED IN 90TH ST ADD (Note: Not to be used on legal documents) Last Data Upload: 7/24/2014 9:44:38 AM 226 ft Overview Legend Roads CSAHCL CTYCL MUNICL PRIVATECL TWPCL City/Township Limits c t Parcels CityCouncilAgenda:07/28/14 1 5K.ConsiderationofadoptingResolution#2014-076amendingthedelegationof authoritytopaycertainclaimstothepositionofFinanceDirectorandinhis/her absencetothepositionofAssistantFinanceDirectorasestablishedinResolution #2013-089 (WO) A.REFERENCEANDBACKGROUND: Withsomeexceptions,statelawrequirescouncilapprovalpriortodisbursementof fundsforpaymentofclaims.Forexample,priorcitycouncilapprovalisnotrequired topayclaimswheretheexactamountoftheclaimhasbeenfixedbyjudgment, previouslyapprovedcontract,orstatelaw. Thefollowingaretypesofclaimswherecouncilapprovalisnotrequiredbefore paymentismade:Judgments,principalorinterestonobligationswheretheexact amountshavebeenpreviouslyfixedbycontract,rent,otherfixedchargesdetermined underacontractthatthecouncilhaspreviouslyauthorized,wagesthathavebeen previouslysetbyeitherthecouncilorstatelaw.Nonetheless,reportsonsuch expendituresshouldroutinelybegiventothecouncilbytheclerkortreasurer(or financedirector). TheCouncilcandisbursefundsforsmalleramountsthroughacouncil-authorizedpetty cashaccount.Additionally,aclaimcanbepaidifamajorityofthecouncilendorsesthe claimpriortothenextcouncilmeeting.Finally,thelaw(Minn.Stat.412.271,subd.8) allowsacitycounciltodelegateitsauthoritytopaycertainclaims.Thisauthoritymay begivenbythecounciltoacityadministrativeofficial.Cityadministrativeofficials includeacitymanager,administrator,treasurer,seniorfiscalofficer,clerkorclerk- treasurer.Inordertodelegatethisauthority,acitymustdothefollowing: Adoptaresolution.Citiesdelegatingauthoritytopayclaimsmustadopta resolutionspecifyingthetypeofclaimstobepaidandtheadministrativeofficialto whomthisauthorityisgranted. Establishinternalaccountingandadministrativecontrolprocedures.These proceduresmustensuretheproperdisbursementofpublicfunds.Theymust includefrequentperiodiccouncilreviewoftheadministrativeofficial’sactions. Whenmoneyisdisbursedundertheseprocedures,alistofexpendituresmustbe submittedforthecouncil’sinformationatthenextmeeting. Prepareannualauditedfinancialstatements.Citiesdelegatingauthority,as describedhere,mustalsoprepareannualauditedfinancialstatements.Moreover, thesestatementsmustbecertifiedbyanindependentpublicaccountantorthestate auditor.Citiesthatdonotpreparesuchstatementsmaynotdelegateauthorityin thismanner. AppendixAtotheresolutionprovidescontextualelementsforthepaymentofclaims. Theproposedchangetoitem13oftheAppendixadds:water,sewageandtelephone utilities;FiberNetcontentandaccessproviders. CityCouncilAgenda:07/28/14 2 A1.BudgetImpact:Thisactionhasnobudgetimpactunlessdiscountsareforgoneor interestandpenaltiesareappliedtodelinquentaccounts. A2.StaffImpact:Thereisnostaffimpactforthisitem. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-076amendingthedelegationofauthoritytopay certainclaimstothepositionoffinancedirectorandinhis/herabsencetotheposition ofassistantfinancedirectorasestablishedinResolution#2013-089. 2.Motiontonotamenddelegationofauthoritytopaycertainclaimsatthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsapprovingAlternative#1fordelegatingauthority. D.SUPPORTINGDATA: ResolutionNo.2014-076 CopyofResolution#2013-089 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-076 AMENDINGTHEDELEGATIONOFAUTHORITYTOPAYCLAIMSTOTHE POSITIONOFFINANCEDIRECTORANDINHIS/HERABSENCETOTHE ASSISTANTFINANCEDIRECTOR WHEREAS,MinnesotaStatutesSection412.271Subdivision1providesthattheCity CouncilhasfullauthorityovertheCity'sfinancialaffairs,includingthedisbursementof publicfunds;and WHEREAS,MinnesotaStatutesSection412.271Subdivision8allowsaCityCouncilto delegateitsauthoritytopaycertainclaims;and WHEREAS,theMonticelloCityCounciladoptedResolutionNo.2013-089onOctober28, 2013delegatingauthoritytopaycertainclaimstothepositionofFinanceDirectorand,in his/herabsence,totheAssistantFinanceDirector;and WHEREAS,theFinanceDirectorisrecommendingseveraladditionstotheclaimsthatcanbe paidbythefinancedirectorpositionor,inhis/herabsence,theassistantfinancedirector position. NOW,THEREFOREBEITRESOLVED,bytheCityCouncilofMonticellothattheauthority topaycertainclaimsshallbeamendedtoincludewater,sewage,andtelephoneutilitiesand FiberNetcontentandaccessprovidersasshowninamended“AppendixA;and BEITFURTHERRESOLVED,thatclaimslistsofallclaimspaidwillbepresentedtothe CityCouncilforinformationalpurposesatthenextregularmeetingafterpaymentofthe claims. ADOPTEDBY theMonticelloCityCouncilthis28th dayofJuly,2014. CITYOFMONTICELLO _____________________________ ClintHerbst,Mayor ATTEST: ______________________________ JeffO’Neill,CityAdministrator APPENDIXA INTERNALACCOUNTINGANDADMINISTRATIVECONTROLPROCEDURES RELATEDTOTHEPAYMENTOFCLAIMS ItistheintentoftheCityofMonticellotopayclaimsinthemostefficientandeffectivemanner possible,consistentwiththeappropriateregulationsandpolicies.Authorizationforpaymentand thedisbursementofallpublicfundsbytheCitywillbecontrolledbythefollowing: 1.AllpaymentswillbemadesubjecttoapplicableStateandFederallaws,theCity CodeandallappropriateCitypolicies. 2.Purchasingandbudgetarycontrolforeachdepartmentaretheresponsibilityof theindividualdepartmentheads.Disbursementswillbemadeupontheapproval forpaymentbyadepartmentheadorbyanyotheremployeedesignatedbythe departmenthead. 3.Disbursementswillbemadeupondepartmentapprovalthatgoodsand/or servicesbeingpaidforhavebeenreceived,goodsand/orservicesbeingpaidfor arenecessary,noduplicatepaymentsaremade,andanyprepaymentsaremade onlyinthebestinterestoftheCity. 4.Disbursementswillbemadeuponreceiptoftheappropriatedocumentationthat willbecomeapartofthefile.Disbursementswillbemadeusingthecorrect accountingcodes. 5.Alldisbursementsincludingchecks,electronictransfers,creditcardsand procurementcards,willberecordedintheCity'saccountingrecordsinatimely mannerandimmediatelybecomepartofthefinancialrecordsoftheCity. 6.Whenpractical,disbursementswillbemadefromoriginal(notcopiedorfaxed) documents. 7.Paymentswillbemadefromeitherinvoicesorstatementsinthebestinterestof theCity. 8.Paymentswillbemadeinatimelyfashiontoavoiddelinquenciesandtotake advantageofearlypaymentdiscounts. 9.Claimslistswillbereviewedandinitialedpriortothereleaseofthechecks. 10.Adetailedreviewmatchingchecksandsupportingdocumentationwillbe completedpriortofilingthechecksandsupportingdocumentation. 11.ClaimslistsofallclaimspaidwillbepresentedtotheCityCouncilfor informationalpurposesatthenextregularmeetingafterpaymentoftheclaims. 12.RequestsfromtheCityCouncilforadditionalinformationwillberespondedto inatimelymanner. 13.Typeofclaimsallowedbythisresolution:gasandelectricutilities;liquorstore andcommunitycenterinventorypurchasedforresale;water,sewage,and telephoneutilities;FiberNetcontentandaccessproviders. (Endoflist) (Amended7/28/14) CityCouncilAgenda:07/28/14 1 5L.ConsiderationofchangingDMVHoursofOperationsonSaturdays (WO) A.REFERENCEANDBACKGROUND: TheDMViscurrentlyopenonSaturdayfrom9:00AMto1:00PM.Thebusiesthouron Saturdaystartsat9:00AMwithcustomerswaitingforthedoorstoopen.Consequently, openingonehourearlierat8:00AMwouldimprovecustomerserviceandpossibly increasetotalrevenue.TheDMVwillmonitortrafficfortheremainderoftheyearbefore seekingtomakethechangepermanentthroughtheannualresolutionsettinghoursof operationsforotherservices. TheMonticelloDMVhasregionalcompetitors.However,ourDMVdrawsahealthy numberofcustomersfromothercities,accordingtoourclerks.Thedataisanecdotal. TheDMVtypicallyhasthreeclerksworkingonSaturday.DMVclerksearn approximately$15to$20perhour.Thereare20Saturdaysremaining.Theextrahour coststhecityapproximately$1,250. TheDMVwillmonitortheimpactofnewscheduleoncustomertrafficandadjust staffingascircumstancewarrant. A1.BudgetImpact:The$1,250costsminusadditionalrevenue. A2.StaffWorkloadImpact:Informationdissemination(updatingFacebookand website),whichisminor.Additionalworkloadcitedabove. B.ALTERNATIVEACTIONS: 1.MotiontoincreaseSaturdayhourofoperationsbyonehourtoopenat8AM. 2.MotiontodenyincreaseSaturdayhourofoperationsbyonehour. C.STAFFRECOMMENDATION: ThecitystaffsupportsAlternative#1. D.SUPPORTINGDATA: ScheduleofSaturdayDMVtransactions City of Monticello Schedule of Saturday DMV Transactions Date Transactions 1/4/2014 79 1/11/2014 83 1/18/2014 46 1/25/2014 63 2/1/2014 181 2/8/2014 119 2/15/2014 94 2/22/2014 101 3/1/2014 271 3/8/2014 106 3/15/2014 113 3/22/2014 107 3/29/2014 180 4/5/2014 133 4/12/2014 152 4/19/2014 91 4/26/2014 126 5/3/2014 150 5/10/2014 26 DNR only (state site down) 5/17/2014 104 5/24/2014 107 5/31/2014 190 6/7/2014 93 6/14/2014 69 6/21/2014 86 6/28/2014 127 7/5/2014 69 7/12/2014 97 YTD Total 3163 CityCouncilAgenda:07/28/14 (THISITEMWAS7E) 1 5M.ConsiderationofreleasingFiberNetGeneralManagerBrianEstremfromhis contracteffectiveJuly31st,2014 (JO) A.REFERENCEANDBACKGROUND: Asyouknow,BrianEstremisrequestinghisreleasefromhiscontractwhichdoesnot officiallyenduntilDecember31,2014.ThedaterequestedisJuly31,2014.Inhisnote requestingrelease,BrianindicatesthatdaytodaybusinessiswellinhandwiththeCSR’s processingbusinessasusual.Thetechsattheheadendareclickingandhehas confidenceintheirabilitytomanagethedailyworkload.Toaccommodatearecent increaseinorders,wehavebroughtonacontractinstallerthatisalsoslatedtostart August4th.DanOlsenofWindomnetwillcontinuetoprovidetechnicaland managementsupportimplementingtheupgradesthatareinprocess.Brianalsonoted thathewillbeavailableforprovidingtransitionsupportafterhisenddate. Inarelatedmatter,satisfactorytermswerenotachievedastheresultofnegotiationswith LanceAddisonandLancehasmovedontootheropportunities.Inresponse,DanOlsen hasakeenunderstandingofthebusinessoperationfromamanagementandtechnical perspectiveandwillbeworkingwithBrianinpreparingoptionsforourreview.Itis recommendedthatweholdoffonpostingforthepositionuntilwereviewoptions. B.ALTERNATIVEACTIONS: 1.MotiontoreleaseBrianEstremfromhiscontractasFNMgeneralmanager effectiveJuly31,2014 2.Motionofother. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1.BrianandDanhavedoneagreatjobinlending stabilitytothetechnologyandorganizationoverthepastfewmonths.Althoughweare disappointedtoseeamemberoftheteamleave,wealsowishBrianthebestwithhisnew opportunity.CitystaffseesnoreasontoholdBrianbackandwearegratefulforthe contributionhehasmadetoputtingFNMinagoodpositionmovingforward. D.SUPPORTINGDATA: None CityCouncilAgenda:07/28/14 1 7A.Considerationofaccepting2014DNROutdoorRecreationGrantaward, authorizingappraisals,andapprovingacorrespondinglocalmatchforaPhaseVIII acquisitionattheBertramChainofLakesRegionalPark (AS/JO) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoconsideracceptinga2014DNROutdoorRecreationGrant award,authorizerelatedappraisals,andapprovetheuseofCityfundsfora2015property acquisitionattheBertramChainofLakesRegionalPark. ThePhaseVIIIacquisitionfundingrequestismadeinordertoutilize $100,000.00in awardedgrantfunds.AsCouncilwillrecall,staffrequestedauthorizationtosubmit thegrantapplicationinFebruaryof2014.InJuly,theCitywasnotifiedofthegrant award,whichrepresentsthemaximumamountoffundingforasinglegrantapplicant throughtheOutdoorRecreationGrantprogram.TheCityhadsubmittedtwogrant applicationstotheOutdoorRecreationprogramforthisgrantround:thefirstforthe remaining10.62acresjustnorthofthe40.17acresofathleticcomplexarea purchasedinJuneofthisyear,aswellasagrantapplicationforthe20acres immediatelyadjacenttotheeastofthe40.17acres.TheDNRawardedfundsonly forthe10.62acregrantatthistime.(TheOutdoorRecreationgrantfundhadjust over$300,000intotaltograntstatewide.) The2014OutdoorRecreationgrantprogramisadministeredbytheDepartmentof NaturalResourceswithfundsallocatedthroughtheFederalLandandWater ConservationFund(LAWCON). Asnoted,theparceltobeacquiredis10.62landacresandrepresentsthesecond proposedacquisitionwithintheactiverecreationportionoftheBertramChainofLakes projectarea.Theacquisitionofthisacreagewouldsupplementtheexistingathletic complexacreageforatotalof50.79acres.Theconceptplanforthe10.62acresofthe complexcurrentlyincludesathleticfields,trails,parkingarea,andaccessfacilities. Aspartofplanningforfuturegrantapplicationsandpotentialacquisitions,Shenohan AppraisalServicescompletedanappraisalofthefullpropertyin2011.Theappraisal, authorizedbytheCityCouncilandWrightCountyBoardofCommissioners,lookedat thevaluationoftheentireparkbasedonchangesinthelandvaluemarket,aswellasthe valuationsofeachremainingindividualparceltobepurchased.Basedonthatappraisal, parcel1oftheBCOLRegionalParkwasvaluedat$1,004,250.The10.62acres representsaportionofwhatwasparcel1(thebalancewaspurchasedwiththelast acquisitioninJune),andisthereforeestimatedforgrantpurposestobevaluedat $265,500.00. TheOutdoorRecreationGrantisa50%matchgrantprogram,withanotedmaximum awardof$100,000.Assuch,theCityandCountyareaskedtoconsidercommitting $165,500combined,or$82,750each.Inaddition,theCouncilisaskedtocommitan additional$10,000infundingtocovertheestimatedcostsoftheappraisal,review CityCouncilAgenda:07/28/14 2 appraisalandclosingcosts.Anewappraisalofthisparcelisagrantrequirement.The appraisalmustbewrittentofederalstandardsandthenmustbeconfirmedbya reviewappraisal. Aswiththepreviousacquisition,itishopedthatthepurchaseofthis10.62acrescanbe pairedwithacquisitionofanotheradjacentparcelatBertram.(SeePhaseVIILegacy GrantitemofthisCouncilagenda.)Thiswillcreateefficienciesrelatedtotitle,closing andlegaldocumentwork.AnamendedMemorandumofUnderstandingandpurchase agreementwillbepreparedaspartofthePhaseVIIIacquisitionprocess.Oncedrafted, thesewillbepresentedtoCouncilforreviewandapproval.Additionally,anyapplicable SharedUseAgreementswillalsobepresentedforCouncilreviewandapproval. A1.BudgetImpact:Recenthousingpermitactivityhascreatedacashbalanceinthe parkdedicationfundofanestimated$153,190. StaffthereforeproposesthatthefundingforthePhaseVIIIacquisitioncomefrom theParkDedicationfund.Asthefundcontinuestoreboundwithincreased housingpermitactivity,theCouncilcanalsodirectviafutureactionthe repaymentoftheCapitalProjectFundforpreviouspurchasesatBertram. A2.StaffWorkloadImpact:IftheCityCouncilauthorizesacceptanceofthegrant, appraisalsandlocalfundingmatch,CitystaffandtheCityAttorneywillwork withWrightCountytobegindraftingthenecessarypurchaseagreement documentationinpreparationforaclosingin2015. B.ALTERNATIVEACTIONS: 1.Motiontoaccepta2014DNROutdoorRecreationGrantawardintheamountof $100,000foraPhaseVIIIacquisitionattheBertramChainofLakesRegional ParkinconjunctionwithWrightCounty,including:authorizationtoenterinto grantcontract,authorizationforrequiredappraisals,approvalofthe correspondinglocalacquisitionandclosingcostsestimatedat$92,750,andto directstafftoprepareappropriateclosingandpurchasedocumentation. 2.Motiontodenygrantmatchfundingfora2014DNROutdoorRecreationGrant awardatthistime. C.STAFFRECOMMENDATION: ThePhaseVIIIacquisitionbringstheCityastepclosertotherealizationofstatedgoals outlinedinthe2008ComprehensivePlan,theadopted2011ParkandPathwayPlanand theadoptedCapitalImprovementPlan. Thisparticularacquisitionrepresentsthesecondstageinfulfillmentoftheneedfor athleticfieldspacewithinthecommunity.Atpresent,626.4landacresofpropertyis jointlyownedandoperatedbytheCityandCountyandisfullyaccessibletothepublic. CityCouncilAgenda:07/28/14 3 TheauthorizationtofundthegrantmatchfortheBertramChainofLakesRegionalPark isalsoconsistentwithpreviousCouncilactionsandwiththeprovisionsoftheapproved MemorandumofUnderstandingbetweentheCity,CountyandtheYMCA.Assuch,staff supportsfundingthematchforthisacquisition. D.SUPPORTINGDATA: A.GrantAwardLetter B.BertramChainofLakesParcelAcquisitionMap C.ProposedPhaseVIIIAcquisitionMap D.BertramChainofLakesFundingTable 5A 5 3 6 7 4 9 8 1 2 12 10 11 Wright County Parks Created by: Wright County GIS, Office of the County Surveyor May, 2008 08001,600400 Feet Parcel #Land AcresWater AcresTotal Acres% of Value 140.17040.175.90% 239.89039.896.00% 3203.032.33205.3610.90% 4132.7523.96156.7119.60% 5203.9577.61281.5612.41% 5A104.3339.7144.0312.99% 6174.640174.645.30% 7121.0948.23169.3211.10% 834.27.9542.1510.20% 99.5746.2755.840.20% 109.8132.3742.180.90% 110.3400.340.00% 1241.870.3342.24.50% Bertram Chain of Lakes The YMCA of Metropolitan Minneapolis 1250.37 Acres = 12 Parcels 2008 Acquisition 2008 Acquisition YMCA Owned Br i a r w o o d A v e n u e Br i a r w o o d A v e n u e Br i a r w o o d A v e n u e Park EntrancePark EntrancePark Entrance Park EntrancePark EntrancePark Entrance MonticelloMonticelloMonticello 90th S t r e e t 90th S t r e e t 90th S t r e e t CSAH 39 90th S t r e e t In t e r s t a t e I -9 4 TH 2 5 LEGEND Primary Access Routes Regional Park Boundary Proposed Acquisition Area PhaseLandAcresYearFundedGrant$Non-LocalFundingSourceCounty$City$TotalStatus/Result 12008$1,000,000LCCMR/EnvironmentandNaturalResourcesTrustFund$1,000,000$1,000,000$3,000,000Phase1CompletedDecember,2008 12008$200,000DNR-MetroGreenways/EnvironmentandNaturalResourcesTrustFund$200,000$200,000$600,000Phase1CompletedDecember,2008 1 279.31 Total2008 $1,200,000 Parcel5A,11and6 $1,200,000$1,200,000$3,600,000 2 40.66 2010 $549,628 DNR-MetroGreenways/EnvironmentandNaturalResourcesTrustFund $274,814$274,814$1,099,256 PhaseIICompletedJune2010 Parcel5B 3 80.88 Aug-08$266,249DNR-Non-MetroRegionalParks/LAWCON(Federal)$148,101$148,101$562,451Phase3,CompletedDecember2011 3Jan-10$400,000DNR-LegacyPark/Amendment(LegacyAmendmentFunds)(PL09-001)$222,500$222,500$845,000Phase3,CompletedDecember2011 3Sep-10$334,725DNR-Non-MetroRegionalParks/LAWCON(Federal)$167,363$167,363$669,451Phase3,CompletedDecember2011 3Sep-10$76,000DNR-LegacyPark/Amendment(LegacyAmendmentFunds)(PL10-001)$61,299$61,299$198,598Phase3,CompletedDecember2011 Total2011 $1,076,974 Parcel7A $599,263$599,263$2,275,500 4 61.25 2011-2012$833,333$500kLegacyPark,$333,333Non-MetroRegionalPark$204,002.00$204,002.00$1,241,337.00Phase4,CompletedDecember2014 $833,333 Thisincludesparcel12,10,9 $204,002.00$204,002.00$1,241,337.00 5 40.17 2012-2013$369,713OutdoorRecreationGrant$317,268.50$317,268.50$1,004,250.00GrantAwarded&Encumbered,LocalShareSecured $369,713 Thisincludesparcel1 $317,268.50$317,268.50$1,004,250.00 2013(Phase6) 6 100.53 2013-2014$1,528,925ParkLegacyGrantSubmitted9-21-12-Parcel7and5$328,288$328,288$2,185,500GrantAwarded,LocalShareSecured 6 23.6 2013-2014$333,333RegionalParkGrantSubmitted9-2-12-Parcel8$144,084$144,084$621,501GrantAwarded,LocalShareSecured total 124.13$1,862,258$472,372$472,372$2,807,001 2013Phase7) 7 124$1,400,000 ParkLegacyGrantSubmittedforportionofparcel4 $436,410$436,410$2,272,820 Grantawarded,localmatchtobeconsidered total$1,400,000 $2,272,820 TODATEFUNDING$7,291,906$3,504,129$3,504,129$14,300,164 2013(Phase8) 8 10.62 2014$100,000$82,750$82,750 $265,500 Pendinggrantsubmittalauthorization 8 20 2014$100,000$200,000$200,000 $500,000 Pendinggrantsubmittalauthorization total30.62$200,000$282,750$282,750 $765,500 2015ProposedFundingBALANCEOFPARK 9 48.422015$1,387,336Parcel4(remaining)$1,387,336 9203.32015$3,550,000Parcel3$3,550,000 1019.892015$497,250Parcel2(remaining)$497,000 1052.63 $20,500,000 2013(Phase5)ProposedFundingGrantsandLocalMatches ProposedFunding&LocalMatches ProposedFunding&LocalMatches ProposedFunding&LocalMatches BertramChainofLakesRegionalPark-AcquisitionProjectFundingHistoryandNeeds PhaseIFunding(2008) Phase2Funding(2010) Phase3Funding(June2011) Phase4Funding(December,2013) CityCouncilAgenda:07/28/14 1 7B.Considerationofauthorizingappraisalsandapprovingacorrespondinglocalmatch foraPhaseVIIacquisitionattheBertramChainofLakesRegionalPark (AS/JO) A.REFERENCEANDBACKGROUND: TheCityCouncilisaskedtoconsiderauthorizingtheuseofanestimated$446,410in Cityfundsforaproposed2015propertyacquisitionattheBertramChainofLakes RegionalPark. ThePhaseVIIacquisitionfundingrequestismadeinordertoutilize $1.4millionin awarded2013Park&TrailLegacygrantfunds.This$1.4milliongrantwasthe singlelargestgrantawardedinthe2013Park&TrailLegacygrantcycle.Thegrant receivedwasbasedonpurchaseofaportionofparcel4oftheregionalpark,asshownon theattachedmap. Aspartofplanningforgrantapplicationsandpotentialacquisitions,ShenohanAppraisal Servicescompletedanappraisalfortheregionalparkareain2011.Theappraisal consideredthevaluationoftheentireparkbasedonchangesinthelandvaluemarket,as wellasthevaluationsofeachremainingindividualparceltobepurchased.Basedonthat appraisal,theestimatedvalueoftheacquisitionareaforPhaseVIIis$2,272,820.Anew appraisaloftheproposedacquisitionparcelisrequiredbythegrantfundingto confirmthisvaluation. Basedonthe2011appraisal,theCity’sshareofthematchfortheproposed acquisitionis$436,410.Councilisalsoaskedtoapproveanadditional$10,000in matchfundingforcompletionofrequiredappraisalsandclosingdocuments.The WrightCountyBoardofCommissionershasalreadyvoted5-0toapprovethe County’sshareofthematchingfunding. ThePhaseVIIareatobeacquiredtotalsapproximately124landacres.Theparcelliesto theeastoftheproposedathleticcomplexatthepark,northofLongLakeandis conceptuallyplannedtoincludethecampgroundfacilityfortheregionalpark. Currently,636landacresofpropertyisjointlyownedandoperatedbytheCityand Countyandisfullyaccessibletothepublic. AswiththeacquisitioncompletedonJune5th,2014,itishopedthatthepurchaseofthis approximately124acrescanbepairedwithacquisitionofanotheradjacentparcelat Bertram.(SeetheOutdoorRecreationitemincludedwiththisCouncilagenda).This willcreateefficienciesrelatedtotitle,closingandlegaldocumentwork.Anamended MemorandumofUnderstandingandpurchaseagreementwillbepreparedaspartofthe PhaseVIIacquisitionprocess.Oncedrafted,thesewillbepresentedtoCouncilfor reviewandapproval.Additionally,anyapplicableSharedUseAgreementswillalsobe presentedforCouncilreviewandapproval.TheGroundLeaseandOperations AgreementfortheYMCACampManitouisinplaceandeffectiveasoftheJune5th, 2014acquisitionatthepark. CityCouncilAgenda:07/28/14 2 A1.BudgetImpact:Thefundingforthispurchaseisproposedtocomeinpartfrom theParkDedicationFund,withthebalanceoffundingfromtheCapitalProjects Fund.TheParkDedicationFundwouldhaveanestimated$60,440available(to- date)afterthe10.62acreacquisitionproposedintheOutdoorRecreation acquisitionitemofthisagenda.TheFinanceDirectorhasindicatedthatthe ClosedBondportionoftheCapitalFundhasacashbalanceofapproximately $1,500,000asofJuly24th,2014. A2.StaffWorkloadImpact:IftheCityCouncilauthorizesthematchand acquisition,CitystaffandtheCityAttorneywillworkwithWrightCountyto begindraftingthenecessarypurchaseagreementdocumentationinpreparationfor closing. B.ALTERNATIVEACTIONS: 1.Motiontoauthorizerequiredappraisalsandapprovethecorrespondinglocal acquisitionandclosingcostmatchestimatedat$446,610foraPhaseVII acquisitionattheBertramChainofLakesRegionalPark,andtodirectstaffto prepareappropriateclosingandpurchasedocumentation 2.Motiontodenygrantmatchfundingfora 2013ParksandTrailsLegacy grantat thistime. C.STAFFRECOMMENDATION: TheauthorizationtofundthegrantmatchfortheBertramChainofLakesRegionalPark isalsoconsistentwithpreviousCouncilactionsandwiththeprovisionsoftheapproved MemorandumofUnderstandingbetweentheCity,CountyandtheYMCA.Assuch,staff supportfundingthematchforthisacquisition.Theacquisitionisconsistentwiththe 2008ComprehensivePlan,theadopted2011ParkandPathwayPlanandtheadopted CapitalImprovementPlan. D.SUPPORTINGDATA: A.BertramChainofLakesParcelAcquisitionMap B.ProposedPhaseVIIAcquisitionMap C.BertramChainofLakesFundingTable 5A 5 3 6 7 4 9 8 1 2 12 10 11 Wright County Parks Created by: Wright County GIS, Office of the County Surveyor May, 2008 08001,600400 Feet Parcel #Land AcresWater AcresTotal Acres% of Value 140.17040.175.90% 239.89039.896.00% 3203.032.33205.3610.90% 4132.7523.96156.7119.60% 5203.9577.61281.5612.41% 5A104.3339.7144.0312.99% 6174.640174.645.30% 7121.0948.23169.3211.10% 834.27.9542.1510.20% 99.5746.2755.840.20% 109.8132.3742.180.90% 110.3400.340.00% 1241.870.3342.24.50% Bertram Chain of Lakes The YMCA of Metropolitan Minneapolis 1250.37 Acres = 12 Parcels 2008 Acquisition 2008 Acquisition YMCA Owned O t t e r C r e e k Forestry Project Savanna Reclamation Project Area Scenic Overlook Connection to City Trail Connection to Residential Trail First Beaver Pond Long Bertram Mud Wright County GIS Office of the County Surveyor October, 2013 Recreation Site Plan Bertram Chain of Lakes Acquisition Phase VII Item #6 01,400700 Feet Legend Future Facilities Owned byOwned by City of MonticelloCity of Monticello RuralRural ResidentialResidential ResidentialResidential Agricultural/Agricultural/ CommercialCommercial ResidentialResidential Trail AgriculturalAgricultural AgriculturalAgricultural Created for: Existing or Planned (721.55 Acres) Future Acquisition City of Monticello Amphitheater Beach Rental Chalet Canoe Access Park Road Park Road Trail (79.95 Acres) Phase VII Boat Access Camping Day Use Fishing Pier Park Office Day Camp Program Area & Facilities PhaseLandAcresYearFundedGrant$Non-LocalFundingSourceCounty$City$TotalStatus/Result 12008$1,000,000LCCMR/EnvironmentandNaturalResourcesTrustFund$1,000,000$1,000,000$3,000,000Phase1CompletedDecember,2008 12008$200,000DNR-MetroGreenways/EnvironmentandNaturalResourcesTrustFund$200,000$200,000$600,000Phase1CompletedDecember,2008 1 279.31 Total2008 $1,200,000 Parcel5A,11and6 $1,200,000$1,200,000$3,600,000 2 40.66 2010 $549,628 DNR-MetroGreenways/EnvironmentandNaturalResourcesTrustFund $274,814$274,814$1,099,256 PhaseIICompletedJune2010 Parcel5B 3 80.88 Aug-08$266,249DNR-Non-MetroRegionalParks/LAWCON(Federal)$148,101$148,101$562,451Phase3,CompletedDecember2011 3Jan-10$400,000DNR-LegacyPark/Amendment(LegacyAmendmentFunds)(PL09-001)$222,500$222,500$845,000Phase3,CompletedDecember2011 3Sep-10$334,725DNR-Non-MetroRegionalParks/LAWCON(Federal)$167,363$167,363$669,451Phase3,CompletedDecember2011 3Sep-10$76,000DNR-LegacyPark/Amendment(LegacyAmendmentFunds)(PL10-001)$61,299$61,299$198,598Phase3,CompletedDecember2011 Total2011 $1,076,974 Parcel7A $599,263$599,263$2,275,500 4 61.25 2011-2012$833,333$500kLegacyPark,$333,333Non-MetroRegionalPark$204,002.00$204,002.00$1,241,337.00Phase4,CompletedDecember2014 $833,333 Thisincludesparcel12,10,9 $204,002.00$204,002.00$1,241,337.00 5 40.17 2012-2013$369,713OutdoorRecreationGrant$317,268.50$317,268.50$1,004,250.00GrantAwarded&Encumbered,LocalShareSecured $369,713 Thisincludesparcel1 $317,268.50$317,268.50$1,004,250.00 2013(Phase6) 6 100.53 2013-2014$1,528,925ParkLegacyGrantSubmitted9-21-12-Parcel7and5$328,288$328,288$2,185,500GrantAwarded,LocalShareSecured 6 23.6 2013-2014$333,333RegionalParkGrantSubmitted9-2-12-Parcel8$144,084$144,084$621,501GrantAwarded,LocalShareSecured total 124.13$1,862,258$472,372$472,372$2,807,001 2013Phase7) 7 124$1,400,000 ParkLegacyGrantSubmittedforportionofparcel4 $436,410$436,410$2,272,820 Grantawarded,localmatchtobeconsidered total$1,400,000 $2,272,820 TODATEFUNDING$7,291,906$3,504,129$3,504,129$14,300,164 2013(Phase8) 8 10.62 2014$100,000$82,750$82,750 $265,500 Pendinggrantsubmittalauthorization 8 20 2014$100,000$200,000$200,000 $500,000 Pendinggrantsubmittalauthorization total30.62$200,000$282,750$282,750 $765,500 2015ProposedFundingBALANCEOFPARK 9 48.422015$1,387,336Parcel4(remaining)$1,387,336 9203.32015$3,550,000Parcel3$3,550,000 1019.892015$497,250Parcel2(remaining)$497,000 1052.63 $20,500,000 2013(Phase5)ProposedFundingGrantsandLocalMatches ProposedFunding&LocalMatches ProposedFunding&LocalMatches ProposedFunding&LocalMatches BertramChainofLakesRegionalPark-AcquisitionProjectFundingHistoryandNeeds PhaseIFunding(2008) Phase2Funding(2010) Phase3Funding(June2011) Phase4Funding(December,2013) CityCouncilAgenda:07/28/14 1 7C.Considerationofapprovingone-yearextensiontothetermsoftheagreement governingpurchaseofKrutzigpropertyatLot2,Block1,JeffersonCommons1st Addition (JO) A.REFERENCEANDBACKGROUND: CityCouncilisaskedifitwishestograntaone-yearextensiontothetermsofthe agreementgoverningpurchaseoftheKrutzigpropertyatLot2,Block1,Jefferson Commons1st Addition.InJulyof2012,CityCouncilapprovedandexecutedthe purchaseoftheKrutzigpropertyunderthefollowingarrangement.Acopyofthe purchaseagreementisincludedwithsupportingdata. TheCitypurchasedthepropertyintheamountof$679,000,whichwastheamount KrutzigowedtoKleinBankandincludingtaxesduetoWrightCounty.Inexchange,the agreementwiththeCityprovidedMr.Krutzigwith24monthstobuybacktheparcelat theoriginalpurchasepriceplusadditionalinterestandcostsitemizedinthepurchase agreement.IntheeventMr.Krutzigwasunabletopurchasethepropertybackduring thistimeperiod,theCitywouldbefreetosellthepropertytoothers.Therepurchase termsintheagreementexpireJuly30,2014. Krutzighasbeenworkinghardatmarketingthepropertyandhasnotedthepresenceof potentialdevelopmentproposals.Herequeststheextensionoftheagreementand associatedtermsforanotheryearwhichwouldprovidehimtimenecessarytoreapthe benefitsofhiswork.Underthisextension,theCitybenefitsfromKrutzig’seffortsto developthepropertyviaadditionaltaxbase,andtheCityobtainsareturnoninvestment throughtheinterestpayback. B.ALTERNATIVEACTIONS: 1.Motiontoapproveaone-yearextensionofthetermsofthepurchaseagreement fortheKrutzigpropertyatLot2,Block1,JeffersonCommons1st Addition. 2.Motiontodenyanextensiontothepurchaseagreementterms. C.STAFFRECOMMENDATION: CouncilshouldselectAlternative#1unlessthereisachangeindirectiondesiredasa resultofnewinformationorpassingoftime. D.SUPPORTINGDATA: A.CopyofpurchaseagreementfrompropertyclosingonJuly19,2012 B.LetterofrequestfromMikeKrutzigdated6/6/2012 CityCouncilAgenda:07/28/14 2 C.Aerialmapofproperty D.Krutzigpropertyinformation E.CouncilMeetingMinutes–June11,2012&July9,2012 F.EDAMeetingminutes–June20,2012&June28,2012 2.7 AC CityCouncilAgenda:07/28/14 1 7D.ConsiderationofauthorizingsubmissionofRequestforProposaltotheCityof Annandaleforprovisionofbroadbandservices (JO) A.REFERENCEANDBACKGROUND: Perpreviousdirectionanddiscussionregardingenhancementofrevenueopportunities, BrianEstremhasbeenworkingonpreparationofaprogramforprovidingsupporttothe CityofAnnandale.Asyouknow,internetandphoneserviceislackinginAnnandale andthecommunityhastakenactiontoimprovetheirsituation.Annandalehasmadea significantefforttoreviewtheiroptionsincludingcompletionofadetailedfeasibility study.AnnandalewasverymuchpartoftheefforttoconvincetheStateLegislatureto set$25millionasidefordevelopmentofhighspeedbroadbandintheStateofMinnesota. Inresponsetothefindinginthefeasibilitystudy,Annandaletalkedtoanumberof privatecompaniesandalsoinvitedMonticellotoprepareconceptfinancialplans.In addition,AnnandaleinvitedMayorHerbstandLloydHilgarttovisitanddiscussthe opportunitytopartner. Afewdaysago,AnnandaleissuedanRFPtothetelecommunicationscommunity requestingproposalsfromentitieswishingtopartnerwithAnnandaletoprovideinternet serviceonly.ThedeadlineforsubmittaloftheRFPisAugust1st. ThisistoinformCouncilthatstaffisseekingauthorizationtocompletetheRFPandto submitaproposalforreviewbyAnnandale.CityAdministratorKellyHinnencamphas informedmethataproposalsubmittedbytheCitywouldbeunderstoodtobeinconcept formonlyandsubjecttoreviewandapprovalbytheMonticelloCityCouncil. DanOlsenisveryawareofthisopportunityforAnnandaleandMonticellotopartner,and believesthatMonticellohasthecapacitytocontinuetheinitiativestartedbyBrian Estrem.ItshouldbenotedthatDanOlsenspearheadedtheefforttoadd11separate citiestothenetworkservedbyWindomsoheisveryexperiencedinthisarea.Windom’s financialsuccesshasbeenenhancedthroughservingnearbycommunities.Finally,the draftfinanceplanpreparedbyEstremandsupportingtheRFPisforoperationalsupport onlyanddoesnotincludeMonticello’sfundingofcapitalorotherstart-upexpenses. A1.BudgetImpact:Nobudgetimpactrelatingtoprovidingthesubmittal.Ifthe projectmovesforwardthereisanopportunityforimprovedutilizationof FiberNetcapacitythusresultinginimprovedefficiencies.Inaddition,theproject wouldyieldadditionalsystemrevenues. A2.StaffWorkloadImpact:StafftimenecessarytocompleteRFPform,whichis estimatedataboutsixhours.Notethatspreadsheetsandbusinessplans supportingtheproposalarealreadyinplace. CityCouncilAgenda:07/28/14 2 B.ALTERNATIVEACTIONS: 1.MotiontoauthorizesubmissionofaRequestforProposaltotheCityof Annandaletoprovidebroadbandservices. 2Motiontotable,pendingapresentationbyStaff. StaffunderstandsthatthistimeframedoesnotprovidetheCityCouncilwitha chancetoreviewthedetailsofthedraftserviceplan.Asanalternativetogranting authorizationsightunseen,CouncilmaywishtoaskAnnandaleforanextension orcallforaspecialmeetingonThursday,July31st. 3.MotiontodenyauthorizingsubmissionofanRFPatthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1or#2.Alternative#1servestoexpeditethe processbutitisunderstoodthatCouncilmayprefertoreviewtheserviceconceptplanso Alternative#2shouldworkaswell. D.SUPPORTINGDATA: (BrianEstremwillbepresenttoanswerquestions) CityCouncilAgenda:07/28/14 1 7G.ConsiderationofadoptingResolution#2014-070approvingtheJointPowers AgreementforpublictransitservicesthroughtheWrightCountyArea Transportation(WCAT)JointPowersBoardorauthorizinganotheroptionforcity busservice (JO) A.REFERENCEANDBACKGROUND: CityCouncilisaskedtoconsiderenteringajointpowersagreementwithWrightCounty citiesthathaveformedacoalitionknownasWCAT(WrightCountyArea Transportation).Asyouknow,WCATwasidentifiedbytheMnDOTOfficeofTransit andSibley/McLeodcounties(TrailblazerTransit)asthe“localpartner”representing WrightCountycitizensintheadministrationandoperationofthe5311serviceplan.The 5311programfeaturesstatefundingat85%withfarerevenueandlocalgovernment sharesplittingthebalance UnderTrailblazer/WCATorganizationstructure,the5311serviceplan,providingtransit toMonticello,wouldbedevelopedbytheTrailblazerTransitBoardofwhichWCAT wouldhavetwoseatsatthetable.Thisboardiscurrentlycomprisedoffivemembers, twofromSibleyCountyandthreefromMcLeodCounty;twomemberswouldbeadded fromWrightCounty(WCAT).TheJointPowersagreementincludesafiveyearterm, andifadoptedbyMonticello,wouldlikelyassureaservicelevelthatmeetsorexceeds previouslevels,butalsoopensthedoortoafiveyearfinancialcommitmentthatwillbe setbyaboardoverwhichtheCitywouldhaveonlyindirectinfluence.Concernsover servicelevelsandfinancialobligationsmadebythegroupaffectingMonticelloare somewhatmitigatedbythefactthattheWCATorganizationsharesacommoninterestto operateanefficientsystem.Policiesarealreadyinplaceforterminatingservicethatdoes notproducemorethan3ridesperhourandingeneraltheorganizationhasnothingto gainbymaintainingexpensiveroutes.Nonetheless,nomatterhowimportanttheservice, itmaybediscomfortingtorelinquishthepurseforfiveyearstoanorganizationover whichonehasindirectinfluence. Asofthepreparationofthismemo,Otsegoistheonlycitythathasvotedagainstjoining. Monticellotabledactionpendingtwomeetingsonthistopicinthepriormonth.Since thenSaintMichael,HanoverandAlbertvilleelectedtojoin.TheCityofClearwaterhas notbeeninvolvedintheprocessandhasnotconsideredthematter.AllotherWright CountycitieshavesignedtheJointPowersAgreement. Decisionmakingforallthecitiesinvolvedinthistopichasbeeninfluencedbytheirpast experiencewithdevelopmentoftransitfortheircitizens.Monticellohashaditgood, whileothercitiesnotquitesogood.ViaHeartlandExpressandRiverRider,ourcitizens havebecomeaccustomedtogoodservicewhilethecitycontributionwasnominalduring HeartlandExpressdaysandeventuallyceasedentirelywhenRiverRidertookover.The Monticellosettingfeaturinghigherpopulationdensityandshortridesresultsingood systemefficienciesandhealthyrevenues.AlthoughIhavenotseenthebooks,Ilearned thatfarerevenuefromtheMonticelloportionoftheRiverRideroperationplusthestate sharecreatedapositivecashflowfortheoperation.Iamawareofthispositivecashflow CityCouncilAgenda:07/28/14 2 situationbecauseitwasthismoneythatwasusedtobuyareplacementbus,andnotthe funds($3,000)thattheCityhadbeenpreviouslyaskedtobudgetforbusreplacement fromitsgenerallevy. WhileMonticellohashaditgood,andthuslessinclinedforchange,itismy understandingthatothercitiesinWrightCountyhavenotbeenabletogettheservicethat theircitizensdesire.Additionally,thefrustrationforthesecommunitiesappearedtobe mountinginlightofthefactthatstatefundswereavailableforexpandingserviceand RiverRiderhadreservesavailableforcoveringthelocalshareonexpansionofservice. Theopportunityforthesecitiestogainserviceandtheassociatedbenefitsofthestate 85%matchviaanestablishedsystem,despitealloftheunansweredquestionsisa positivemovefortheircommunities. TheMonticellosituationisdifferentthantheothercitiesandwillrequireacceptanceof changeandsomesacrificeinordertoretainservicelevelsthatthecommunityhascome toenjoy.Whatisthechange?Inessence,undertheWCAT/Trailblazeroperation,the financialstrengthfromthehighpopulationdensityofMonticellointheformofrelatively reasonablecostperridewillbeintegratedandblendedintoalargerorganizationthatwill benefitfromMonticello’seconomyofscale.TheCityofMonticellowillbecome responsibleforpayingapro-rataportion(localshare)ofdeficitsnotcoveredbythebus faresorcontracts,thissharetobebasedonridershipfigures. Asnotedabove,Monticelloefficienciesgetdistributedtoalargerorganizationservinga lessdensepopulation.Ontheotherhand,beingpartofanorganizationservingalarger, lessdenseterritorydoesnotnecessarilymeanthatthelocalsharepaidbyMonticellowill increase;thereareotherfactorsthatcanresultinimprovedefficiencyforalargersystem, suchasreducedoverheadpercapitaandimprovedaccesstocontractrevenuesources.It shouldbenotedthatthissituationforMonticellowillbethesameforcitieslikeDelano andBuffalowhowillbesharingtheireconomyofscalewiththesmallercitiesinthe moreruralareas.Similarly,Hutchinson,whichislocatedintheTrailblazerterritory,is sharingitseconomyofscalewithitsoutlyingarea.Leadershipinthesecitiesbelieve thatspreadingthewealthissomethingtheyarewillingtodoinordertoimproveservice intheircitiesandWrightCountyoverall. Finally,undertheJointPowersAgreement,eachWCATcitywillhaveonevotethrough January2015.Afterthat,thevotingnumberchangeswitheachcityhavingonevoteplus anothervoteforevery3,000ridesoriginatinginthatCity.Thisvotingstructuredoes servetoshiftthepowertothecommunitiesthatgeneratethemostrides.Theassociated liabilityforpayinglocalshareshouldestablishanaturalgovernoronexpandingthe systeminaninefficientmanner. FactorstoConsider Pleasenotethatthefactorsbelowandassociatedanalysisarefuzzybecausemuchofthe informationonfuturecostrelyheavilyondecision-makingyettocome.Councilneeds toreviewitspositioninthecontextofwhatitwishestoprovidefortransportation CityCouncilAgenda:07/28/14 3 service,balancedagainsttheexposurethatcomesfromenteringanagreementwithouta firmunderstandingoftheultimatecostsandatthesametimehavingonlyindirect influenceondecisionmaking. Financialcommitmentwithoutagoodunderstandingofcostwithregardstotheongoing annualcost Startingin2015,eachcitywillpayitspro-ratashareofthedifferencebetweenthetotal costandtherevenuethatcomesfromthe85%share,contractfees,andfarerevenue.The pro-rataamountforeachcitywillbebasedonthenumberofridesoriginatingineach city.Thisdoesnotseemlikemuchofafinancialriskbecausewehavebeentoldthatthe averagecostperrideis$10.38perride.WiththeStateofMNpaying85%ofthiscost ($8.83),andadding$2.00forFareRevenuetocoverthebalance,andcostsappeartobe covered.Thismeansverylittleexposuretocitiesconcernedaboutfundingalocalshare. However,itshouldbenotedthat,theTrailblazerBoardcurrentlycanbudgetforatotal servicelevelthatexceedswhattheStatewillpayunderthe85%program.Forinstance, Trailblazercanaddoncoststocovercontractsthatmightbeself-fundedbytherevenue comingoffthecontracts.Theadditionalcommitmentincostabovethe85%state subsidywouldbeexpectedtobetiedtoaspecificrevenuesourceandnotpassedonto WCATcities.SucharrangementswouldneedtobeidentifiedbetweenWCATandthe TrailblazerBoardatsuchtimethattheWCATjoinsTrailblazer. CostEstimates Asnotedabove,costimpactsaredifficulttodiscernandcanonlybepresentedatbestin theformofarange.Belowismybestexplanationofthepotentialcosts,andIapologize inadvancetoTrailblazer,StateofMNandcurrentWCATmembersifImisstate anythinginthisreport.Iwelcomeanycorrectionfromothersaccordingly. TrailblazerStart-upCostsforWCAT:MonticelloShare-$20,000to$40,000spread between2016and2020. InexchangingvoiceandemailswithPhilKern,actingChairmanofWCAT,thisiswhatI havelearnedregardingstart-upcosts.Philstates:“Withrespecttothe‘loan’from MnDOT,I[Kern]understandittobea$180,000advance.MnDOTofficialshavesaid therewouldbeapaybackperiod,likelyaround5years,butwithoutalocalpartner(even today),there’snoonethat’ssteppeduptosayyes,we’llpaythatback.’I[Kern] understandthediscussionstohaveleftoffhere: WCATisawarethatMnDOTisplanningtoimposea$180,000“loan”forthis transition MnDOTstatedattheJune12WCATmeetingthatanyexcessWrightCounty fundsfromthedissolutionofassetsofRiverRidershouldgotothis“loan” first.WhatthefinallumpsumofassumedMnDOT“loan”is,we’llfindthatout movingforward. MnDOTisassumingoncetheWCATentityisonitsfeet,therepaymentcan begin.Idon’tknowiffromMnDOT’sperspectivethatmeans2015-2019or2016- CityCouncilAgenda:07/28/14 4 2020.AsonememberofWCAT,IknowDelanowillbepushingforanyagreed- uponloantoberepaidfrom2016-2020ifit’safive-yearperiod.Ithink2015is toosoonwithmanycitiesjustbudgetingfortransitforthefirsttime. Iamalsoundertheunderstanding,listeningtoMnDOTofficialsdiscussthisat theWCATmeetings,thattherepaymentwouldbeover5years.TheWCATBoard willneedtodetermineiftherepaymentamounteachyearwillbeincludedwithin thatyear’soperatingcosts,andthereforepayablebasedonthepreviousyear’s ridership.ThatwouldbeDelano’svote(sothatasridershipchangesinfuture years,theloanrepaymentpercentageschangeaccordinglyandaren’tfixedat ridershiplevelsinyear1). Hopethatanswersyourquestion.” SotorestatePhilKern’sobservation,thetotalamountofthestart-upcostsisyettobe determinedbutwillbelessthan$180,000dependingontheamountofmoneyleftover fromRiverRider.IfMonticellojoinsWCAT,IwouldconcurwithPhilKern’soutlineas tobestmethodforfairlytiminganddistributingthecost. ItshouldbenotedthatifMonticellojoinsWCAT,itwouldnotbepayingtwiceforstart- upcosts.Althoughtherewascapitalexpenseintheservicefeecharge,Heartland Expresswasoperatedunderaservicecontractandnodirectpurchasesofabuswereever madethatwouldhavebeentransferredtoRiverRider.Similarly,Monticellodidnot contributetothecostofthebusoperatedinMonticellobyRiverRider.Itisnotknown howmuchofthemoneythatremainsintheRiverRiderbanktonowbeusedtopaystart- upcostswouldhavecomefromMonticellofarerevenue. Costs–LocalShareforTrailblazer:AnnualEstimate-$15,000to$35,000annually Similarly,itisdifficulttopindownthelocalsharethatMonticellomightpaysothebestI candoistopresentarange.Firstoff,thelocalshareprojectedforWrightCountybythe TrailblazerBoardissetat$150,000whichrepresents25%ofthelocalshare responsibilityforallthreecounties.Ifonedistributesthisnumberbasedonpopulation, thecosttoMonticellocomesinatanannualcostof$23,938.Notealsothatthis percentageisnotguaranteedpastthefirst18monthsofoperation.Herearethefactors yetthatcouldimpactthatnumber: TheTrailblazerBoardcouldinthefutureincreasetheWrightCountysharetoa percentagehigherthan25%.WrightCountyactuallycomprises70%ofthetotal populationofthethreecountiessoitwouldseemlike25%shouldgoup.Onthe otherhand,SibleyandMcLeodcountieshavestrongrevenuesourcesfromtheir respectivecountygovernmentsthatcoveralargeportionoftheirlocalshare. OnewouldhavetotrusttheBoardtomadeadjustmentstothepercentagebased onwhatisfairtoeachCountybasedonrevenuesourcesavailable. Monticellocouldgeneratemoreridesonapercapitabasisthanother communities.ThiswouldresultinMonticellopayingmorethantheestimated amountabove.Additionally,moreridesgenerallymeansmoreefficientandless CityCouncilAgenda:07/28/14 5 expensivecostperride.However,thewayWCATissetup,thebenefitsthat comefromproducingahigherrateperhourisspreadacrosstheallthecitiesand doesnotaccruetothecitythatisgeneratingmorerides/dollar. ThetotalbudgetprojectedfromwiththeWrightCountylocalshare($150,000) couldchangesubstantiallydependingonWCAT/Trailblazerdiscussions.Itcould dropdependingonhowmuchserviceWCATwishestoprovide.Inaddition, establishmentofcontractsbetweenTrailblazerandotherusers,suchasWright CountyHumanServices,coulddropthelocalsharequiteabit.Introductionof futurecontractsintothefinancescouldreallyservetodrivedownthelocalshare requirement. AfterinputfromtheTrailblazerDirectorandlookingatvariousscenarios,itismy viewthat$15,000wouldbethelowerendoftherangewiththehighendinthe neighborhoodof$35,000.Thehighendwouldincludeprovisionofadditional busesandahighervolumeofrides.Note,thiswouldbeaddedtotheinitialstart- upcostofabout$4,000to$8,000peryear. TotalCost:Afterreviewingthelocalshareandstart-upcostprojectionsalongwiththe methodfordistributingcosts,itisestimatedthattheannualcostthrough2020willrange somewherebetween$19,000to$43,000peryear. TrailblazerPerformanceandService Whenreviewingthecosts,considerationsoneshouldkeepinmindthatTrailblazer Transitserviceisexcellent.Itisawell-runorganizationthatconsistentlyoperatesin compliancewithrequiredstateandfederalstandards.Transitservicewouldinclude pointsoforiginationanddestinationsacrosstheentirecountyandnotjustMonticello. Thebusesareverycleanandthesystembenefitsfromacompletelycomputerized dispatchutilizingGPStechnology.IfMonticellojoinstheWCATorganizationthere wouldbecompleteassurancethatregularservicewouldbeprovided. Trailblazer/WCATSummary Insum,theTraiblazer/WCAToptionwouldresultinaservicelevelthatwillmeetand likelyexceedserviceprovidedbyHeartlandExpressandRiverRider.However,itis difficulttoprovideagoodestimateofcost.TheTrailblazer/WCATbudgetpreparationis atveryearlystagesandcouldstayinastateoffluxovertimewhichcontributestothe financialuncertainty.Inaddition,theWCATlocalshareandstart-upcostdistribution appearstiltedtobenefitlowridevolume/highcostperrideserviceareasoverhighride volume/lowcostperrideareassuchasMonticello. Fromapolicydevelopmentstandpoint,eachCitywithinWCATandWCATitselfasa memberoftheTrailblazerBoardwillhaveaminorityposition.Giventhegovernance model,acityorcitiesthatdisagreewithdecisionsoftheWCATorTrailblazerBoard regardingservicelevelandcostdistributionwouldhavenorecoursebuttoacceptand CityCouncilAgenda:07/28/14 6 paybasedonpoliciessetbytheparentgroup.TheJointPowersAgreementtermisfor fiveyears. OtherOptions HoglundTransportation/City/CommunityPartnership TheCityofMonticelloreceivedaproposalfromHoglundTransportationforproviding dial-a-rideserviceonweekdaysbetween9AMand2PMatatotalcostof$60,000.Under thisarrangement,itisestimatedthat10,000ridesat$2/ridewouldresultin$20,000in revenue.Thedifferenceof$40,000wouldbemadeasapaymenttoHoglund Transportation.Ifrevenuesfallshortorexceed$20,000,theCityandHoglund Transportationwouldsplitthedeficitortheextrarevenue.Pleasenotethatthe$2per rideisforfivehoursonlybetween9AMand2PM.Forridesbeforeandafterthatslot, thecostofthefarewouldbesethigherandHoglundTransportationwouldretainthese revenues.Underthisprogram,theCityandHoglundmightconsiderworkingwith charitableorganizationsinseekingrevenueforfundingtheprogram.Thereareanumber ofdetailsthatneedtobeworkedoutifCouncilpreferstogointhisdirectionbutit certainlyisanoption. SeekServicefromTriCapTransitConnection Tri-Cap(TriCountyCommunityActionProgram)istheorganizationthatiscurrently providingservicetoSherburneCounty.IhavebeeninformedbytheTri-CapTransit Directorthattheiroperationiscurrentlyatmaximumcapacityandwouldhaveadifficult timeservingMonticellowhilemaintainingthecurrentservicelevelforitsarea.The Directornotedthattheprocessforobtainingservicewouldbetopresenttheconceptto theExecutiveDirectorandthenontotheTriCapBoardofDirectors.Somewhereinthe processs,theStateofMNwouldprovideinputontheanyproposaltoenlargetheTriCap boundariestopick-upMonticello.Forthisoptiontobecomeareality,bothTriCapand theStateofMinnesotawouldneedtobeinsupport.Asyouknow,theStateofMN encouragedallofWrightCountytogowithTrailblazer.IdonotknowiftheStatewould getbehindtheconceptofMonticelloshiftingtotheTriCapservicearea.Itwouldappear thattheshiftingtoTriCapisaplausibleideafromageographicstandpointsoitmightbe worthaskingthequestion.Also,itisprobablethattheCityofMonticellowouldneedto coveralocalshareunderthisscenarioandofcoursethispotentialamountisnotknown. FolllwingisadescriptionoftheTriCapPublicTransitBusServicesastakenfromtheir website. Phone800-600-7498/320-202-7824 PUBLICTRANSITBUSSERVICES ThemissionofTri-CAP'sTransitConnectionandVolunteerDriverProgramisto providesafe,dependable,affordableandcourteoustransportationservicesforthegeneral publicinruralBenton,MorrisonandStearnsCounties. CityCouncilAgenda:07/28/14 7 TheTransitConnectionhasbusesoperatinginRuralBenton,MorrisonandStearns Countiesfivedaysperweek.Thebusserviceisavailabletothegeneralpublicwithno ageorincomerequirements.Allbusesarehandicappedaccessible.Busreservationscan bemadeuptotwoweeksinadvance.Busfaresare$1.25perboardingwithin communitiesand$3.00perboardingforruraltocommunitytrips.Schedulesaresubject tochangewithoutnotice.ViewtheTri-CAPTransportationServicePolicyfordetailed informationonserviceoperations. Busschedulesandservicehoursvarybyservicearea.Scheduleavailabilitycanchange dailyandisalwaysdependentonhowquicklytimeslotsarefilledbypassengersina givenarea. FinalOption AlastoptioncouldbetorelyontransitneedmarketdemandinMonticellotoattractbus servicefromTrailBlazerTransit.Underthisconcept,Councilwouldrelyonthe economicbenefitstoTrailblazerTransitassociatedwithservingMonticello.IfCouncil madethischoice,itwouldbeonthebeliefthatridershipwouldberelativelyhighin Monticello,andaTrailblazerbusoperatinginthiscommunitywouldhaveaneconomic advantagethatwoulddriveservicedelivery.UnderthisscenariotheCityofMonticello wouldnotbeunderanyobligationtopayalocalshareorberesponsibleforstart-up costs.Ontheotherhand,WCAT/Trailblazerwouldbeundernoobligationtoserve Monticelloeveniftheeconomicsjustifyprovidingservice. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-070approvingtheJointPowersAgreementfor publictransitservicesandmembershipintheWrightCountyAreaTransportation (WCAT)JointPowersBoard.Underthisalternative,theCitywillbeentitledto appointtworepresentativestotheWCATBoardfor2014;oneshallserveasthe votingrepresentativeandtheotherasanalternate. WCAThasprovidedAugust1st asthedeadlineforjoiningtheorganization.This deadlinefromWCATisnotarbitraryas5311ManagementPlansfor2015 TrailblazerTransitmustbedevelopedbyAugust15th.MembershipinWCAT willdrivediscussionsregardingserviceareaandresourcesrequestsfor Trailblazer.OnceWCATknowswhichcitiesareintheservicearea,the managementplancanbedevelopedaccordingly. 2.MotiontonotapprovetheJointPowersAgreementwithWCATanddirectstaff todevelopaprogramutilizingHoglundTransportationfortransitservicesas identifiedintheconceptplanmentionedabove. 3.Motiontotablethematterandexploreoptionsforothertransitservices,suchas fromTriCap. CityCouncilAgenda:07/28/14 8 C.STAFFRECOMMENDATION: IftheCityCouncildesirescomprehensivetransitservicethroughWrightCountyand believesthat,despitetheunknowns,therearesufficientcommonfactorsandreasonsfor theWCATandTrailblazerorganizationstooperateinafairmannerthattakesinthebest interestsofall,thenCouncilshouldselectAlternative#1. IfCouncilbelievesthattheformulafordistributionofcostswiththeJointPowers Agreementistroublesomeortherearejusttoomanyunknownsrelatingtothebudgetand governancestructure,thenCouncilshouldexploreotheroptionsforobtainingtransit servicesforitscitizens. D.SUPPORTINGDATA: A.Resolution#2014-070 B.JointPowersAgreement C.Minutesfrom6/30/14transitmeetinginSt.Michael CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-070 APPROVINGTHEJOINTPOWERSAGREEMENTFORPUBLICTRANSITSERVICE THROUGHTHEWRIGHTCOUNTYAREATRANSPORTATION(WCAT)BOARD WHEREAS,theCityofMonticellonolongerreceivespublictransitserviceupondissolutionof theRiverRidercontractfortransitserviceseffectiveJune30,2014;and WHEREAS,theCityofMonticellowishestocontinueprovidingpublictransportationtothe residentsoftheCityofMonticelloinconjunctionwithotherWrightCountycities; NOWTHEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFMONTICELLO, MINNESOTA: 1.ThattheCityofMonticelloshallenterintoaJointPowersAgreementforpublictransit servicethroughtheWrightCountyAreaTransportation(WCAT)JointPowersBoard. 2.ThattheMayorandCityAdministratorareherebyauthorizedtosigntheJointPowers Agreement. 3.ThattheCityCouncilshallapproveavotingrepresentativeandanalternatetoserveon theWrightCountyAreaTransportationBoard. ADOPTEDBY theMonticelloCityCouncilthis28th dayofJuly,2014. CITYOFMONTICELLO _________________________________ ClintHerbst,Mayor ATTEST: ________________________________ JeffO’Neill,CityAdministrator CERTIFICATION STATEOFMINNESOTA COUNTYOFWRIGHT IherebycertifythattheforegoingisatrueandcorrectcopyofResolution#2014-070 dulypassed,adoptedandapprovedbytheMonticelloCityCouncilattheirscheduledmeetingon July28th,2014,andrecordedinminutesofsaidmeeting. ____________________________________ CatherineM.Shuman,DeputyClerk NotaryPublic:_______________________________ Date:___________________________ (STAMP) WRIGHT COUNTY AREA TRANSPORTATION JOINT POWERS AGREEMENT The parties to this Agreement are municipal corporations under the laws of the State of Minnesota and located in Wright County, Minnesota (the parties to this Agreement are hereafter referred to individually as a “City” and collectively as the “Cities”). RECITALS WHEREAS, Minnesota Statute §471.59 authorizes the joint and cooperative exercise of powers common to the Cities. WHEREAS, the Cities desire to provide for an agreement between and among them to establish a joint powers board for Transportation for the purpose of providing a coordinated service delivery and funding source for public transportation; and WHEREAS, each City has adopted a Resolution finding that it is in the best interests of the citizens of each City to enter into this Agreement. NOW THEREFORE, IT IS MUTUALLY AGREED AND UNDERSTOOD AS FOLLOWS: 1. General Purpose. Pursuant to the authority of the Joint Powers Act, the Cities desire and intend to provide affordable Public Transportation to their communities. The goal of the Cities is to provide people in their communities with mobility and access to employment, community resources, medical care and recreational opportunities, while reducing the impact of road congestion, travel times, air pollution, the cost of road maintenance and repair, and energy and oil consumption for their communities. 2. Joinder of Wright County Political Subdivisions. The undersigned Cities hereby agree to join together for the purpose of coordinating the delivery of public transportation services and establishing a joint funding source for said services through establishment of a Wright County Area Transportation Joint Powers Board (“WCAT Board”). This Agreement shall become effective upon adoption of a resolution by the governing body of no less than three Cities, and shall be binding on all the Cities who have joined through adoption of a resolution by their respective governing bodies through December 31st, 2019, unless otherwise extended or amended by the Cities that have signed this Agreement. 3. WCAT Board Composition. Each City shall appoint annually a representative to the WCAT Board. Each City may appoint an alternate representative who may act in the place and stead of an absent representative from that City. 4. Funding. The WCAT Board is authorized to procure such State and Federal funding as is available toward financing the costs of providing public transportation services for the Cities. Each City agrees to pay a proportionate share (the “Pro Rata Share”) of the WCAT Board’s remaining unfunded operating expenses and capital expenditures based upon the number of rides originating in the City during the prior year as compared to the total number of rides originating in all of the Cities during the prior year (the “Ride Share”). Each City shall also pay an annual fee to provide for the proper operations of the WCAT Board. Each City shall pay an initial $1,000 fee to cover the WCAT Board’s projected expenses during the first year of operation. For 2015 only, operating and capital expenses shall be based upon the projected total number of rides during 2015 as determined by the WCAT Board prior to January 1, 2015 and such expenses shall be allocated proportionately among the Cities with each City paying its Pro Rata Share. Within _____days after December 31, 2015, the WCAT Board shall perform a reconciliation of operating and capital expenses based upon each City’s actual 2015 Ride Share, and funds shall be payable from or reimbursed to each City based upon the difference between each City’s initial payments and reconciled 2015 Ride Share amounts. The WCAT Board may from time to time adjust the operating and capital expenses as it deems appropriate. 5. Meetings. The WCAT Board shall meet at least annually on a schedule determined by the WCAT Board. All meetings of the WCAT Board shall be conducted in a manner consistent with the Minnesota Open Meeting Law, Minn. Stat. §13D.01, et. seq., as amended. Special meetings may be called by the WCAT Board Chair or upon written request of three (3) or more members of the WCAT Board. Written notice of any special meetings shall be sent to all WCAT Board members and to the City Clerk of each City to comply with posting requirements. 6. Powers and Duties. The powers and duties of the WCAT Board include, but are not limited to, expending funds for the purpose of establishing, funding, coordinating, administering and operating a public transportation service including: a. Apply for, receive and expend State and Federal funds available for said purpose, as well as funds from other lawful sources, including fares, donations or gifts for the purpose of providing public transportation services and such supplemental services deemed advisable by the WCAT Board. b. Approve an annual budget. c. Adopt and implement a management plan to carry out the WCAT Board’s purpose. d. Enter into contracts with public or private entities as the WCAT Board deems necessary to accomplish the purpose for which the WCAT Board is organized, including, but not limited to, the hiring of any consultants. e. Obtain such insurance as the Board deems necessary for the protection of the WCAT Board, members of the WCAT Board, member cities, and its property. f. Exercise all other lawful powers necessary and incidental to the implementation of public transportation services and the purposes and powers set forth herein. h. The WCAT Board has no authority to obtain or operate an independent transit service without the express approval of a majority of the Cities. i. The WCAT Board has no authority to levy taxes or issue debt for operating capital or debt service purposes unless prior approval in writing is given by all of the Cities. j. The WCAT Board has no authority to issue debt that exceeds the term of this Agreement. 7. Voting. Prior to January 1, 2015, each City shall have one vote on the WCAT Board. Beginning January 1, 2015, each City shall be entitled to one vote plus one vote per 3,000 rides originating in that City during the previous year. Prior to the first meeting in March the Secretary of the WCAT Board shall determine the number of votes for each City in accordance with this section and certify the results to the Chair. A quorum shall consist of a simple majority (51%) of representatives from the Cities. A simple majority vote of the WCAT Board members present at the meeting with a valid quorum shall be required by the WCAT Board to take action unless otherwise provided in this Agreement or by law. 8. Officers. There shall be a chair, a vice chair, and a secretary elected from the members of the WCAT Board at the initial meeting of each year. The officers shall be elected from different member Cities. The WCAT Board may elect or appoint such other officers as it deems necessary to conduct its meetings and affairs. 9. Effective Date/Termination. This Agreement shall become effective upon execution by all of the Cities after adoption of an authorizing resolution by the City Council of each City and shall continue in effect for Five Years after the date of execution of the last City to execute this Agreement. This Agreement shall remain in effect until a party hereto gives notice to the WCAT Board of its intention to withdraw. Notice of withdrawal must be given by April 1 of a given year. Termination will be effective at the conclusion of the calendar year. This Agreement shall remain in effect as to the remaining members provided that there are three or more members who desire to continue operating the WCAT Board. The withdrawing member shall not be entitled to compensation or distribution of any assets of the WCAT Board. In the event of dissolution of the WCAT Board, any property owned or held by the WCAT Board shall be sold for fair market value. All remaining funds after satisfaction of all WCAT Board debt, payments and other financial obligations shall be returned to the Parties in the same manner in which the Parties contributed funding to the WCAT Board in the last full calendar year prior to dissolution. 10. No Waiver. Nothing herein shall be construed to waive or limit any immunity from, or limitation on, liability available to any City , whether set forth in Minnesota Statutes, Chapter 466 or otherwise. 11. Severability. If any section, subdivision or provision of this Agreement shall be held invalid or unenforceable for any reason, the invalidity or unenforceability of such section, subdivision or provision shall not invalidate or render unenforceable any of the remaining provisions. 12. Amendment. Any amendments to this Agreement must be in writing, signed by all of the Cities, following approval of their respective City Councils. 13. Governing Law. This Agreement shall be interpreted in accordance with the laws of the State of Minnesota. 14. Liability and Insurance. Each City shall be liable for its torts and the torts of its employees, agents and consultants in undertaking its respective individual responsibilities as described in this Joint Powers Agreement. Notwithstanding any language to the contrary, the Cities agree that liability arising out of the activities of the WCAT Board and the Cities shall be subject to the requirements of Minnesota Statutes §471.59, subdivision 1(b), as it may be amended. The Cities intend that the WCAT Board be insured for its tort liability and general liability as a Joint Powers Board. Nothing herein shall be construed to waive or limit any immunity from, or limitation on, liability available to any City, whether set forth in Minnesota Statutes, Chapter 466 or otherwise. 15. Disputes. The Cities agree that they will submit any disputes under this Agreement to mediation prior to resorting to an action in Court. By signing this Agreement, the parties hereto certify that the same has been approved by their respective City Councils. By_____________________________________ By____________________________________ Mayor Mayor ATTEST: ATTEST: _______________________________________ _______________________________________ City Administrator City Administrator By_____________________________________ By____________________________________ Mayor Mayor ATTEST: ATTEST: _______________________________________ _______________________________________ City Administrator City Administrator JOINTTRANSITMEETING CITIESOFALBERTVILLE,HANOVER,MONTICELLO,ANDST.MICHAEL JUNE30,2014 ThecitiesofAlbertville,Hanover,Monticello,andSt.MichaelmetinajointsessiononMonday, June30,2014,at6:00p.m.intheSt.MichaelCouncilChamberstodiscusspublictransportation inWrightCounty. CityofAlbertvillepresent:MayorJillianHendrickson(inat6:55p.m.);CouncilorsRobOlson, LarrySorenson,JohnVetsch,andDanWagner;andCityAdministratorAdamNafstad. CityofHanoverpresent:MayorChrisKauffman;CouncilorKenWarpula;andCity AdministratorAnnitaSmythe. CityofMonticellopresent:MayorClintHerbst;CouncilorsLloydHilgart,TomPerrault,and GlenPosusta;CityAdministratorJeffO’Neill;andDeputyClerkCathyShuman. CityofSt.Michaelpresent:MayorJerryZachman(inat6:25p.m.);Councilors:KevinKasel, JoeMarx,NadineSchoen,andChrisSchumm;CityAdministratorSteveBot;andCityClerk DianaBerning Alsopresentwere:OtsegoMayorJessicaStockamp,WaverlyMayorConnieHolmes;Buffalo CityAdministratorMertonAuger;TrailblazerTransitExecutiveDirectorGaryLudwig;MnDOT OfficeofTransitDirectorTomGottfried;MnDOTOfficeofTransitProgramCoordinatorBev Herfindahl;CrowRiverSeniorCenterDirectorVonnieWaters;CountyCommissionersMark DaliedenandMikePotter,andseveralresidentsfromthecommunities. ActingSt.MichaelMayorKevinKaselcalledthemeetingtoorderat6:03p.m. Introductionsweremade. MeetingPurpose.St.MichaelAdministratorBotreviewedtheproposedagendaandpurposeof themeeting,statingthismeetingistoanswerquestionsaboutTrailblazerTransitandwhatitcan offertoWrightCountycitiesaswellastohelptheCityelectedofficialsdecideiftheywantto jointheCitiesJointPowersAgreement(JPA).TrailblazerTransitislookingforapartnerin WrightCountyandseveralWrightCountycitieshavealreadyjoinedaJPAtoestablishaWright CountyCitiesAreaTransit(WCAT)jointpowersboardtocoordinateandfundpublic transportation.ThedeadlineforothercitiestojointheJPAisAugust1st. TrailblazerTransit.GaryLudwig,theExecutiveDirectorforTrailblazerTransit,waspresent toexplainwhatTrailblazerisandtheserviceitisproposingforWrightCountycities.Hesaid June30th wasthefirstdayofserviceinWrightCountyanditwasasuccessfulday.Thereare currentlythreebusesinserviceforWright,withtheplantoaddfourmorebytheendoftheyear. LudwigsummarizedthehistoryofTrailblazerTransitandexplainedthetwoservicesthatfall undertheumbrellaoftheTrailblazerJointPowersBoard.ThefirstisTrailblazerTransit,which JointTransitMeetingMinutes–Page2 isaMnDOTmanagedprogramthatprovidesgeneralpublictransportationservicestoalmost anyoneforalmostanyreasonMonday-Friday,exceptcertainholidays.TheTrailblazerTransit serviceareaincludesthecountiesofMcLeod,Sibley,andnowWrightanduptoonemile beyondthosecountyborders.Theserviceisdoortodoor,sothedriverwillopenthedoortothe frontoftheresidenceanddropapersonoffatthefirstdoubledoortoanyfacility.Thesecond serviceisSMART-RIDE,whichisanon-MnDOTmanagedprogramthatprovidesridesto anyone,7daysaweekandwillprovidearideanywhereinthestateofMinnesota.Thefaresfor SMART-RIDEarechargedperloadedmile.LudwigexplainedtheWrightCountyAreaTransit JointPowersBoard(WCAT)willhavetheoptiontoparticipateinSMART-RIDEoroptoutifit doesnotwanttoofferthatservice.(Zachmanin) LudwigexplainedtherearecertaincriteriausedtodeterminehowthebusroutesforTrailblazer arescheduled.Eachrouteneedstomeetminimumperformancestandards,whichincludesa minimumnumberofridesperhour.Trailblazertriestobalancetheneedfortransitwiththecost fortheservice.Currently,thereare14busroutesoperatingintheSibleyandMcLeodcounties, whichhaveacombinedpopulationof45,000.Thereareabout125,000peopleinWrightCounty andcurrentlytherearethreeroutes,withanotherfouranticipatedtobeaddedsoon.Wherever thehighestdemandis,thatiswherethebuseswillbescheduled. MonticelloMayorHerbstaskedwhythereisthedelayinaddingthefouradditionalroutes. LudwigstatedTrailblazerisintheprocessofhiringadditionalstaffandmaintainingthebuses thatwerereceivedfromRiverRider.Newcameras,radios,andsecuritysystemsneedtobe installedandtheyneedtobere-lettered.EverythingtakestimeandTrailblazerisworkingas quicklyasitcantohavethosebusesfunctionalandontheroad.Herbstsaiditistotallywrong thatitishappeningthiswayandthatthereisthedelay.LudwigexplainedtheTrailblazerboard ofcommissionersandMnDOTstaffarewatchingtheprocesstomakesureeverythingisdone correctly. Next,Ludwigwentoverthebudgetstructurewiththegroupandexplainedwherethefundingfor Trailblazercomesfrom.MnDOTpersonnelworkwithTrailblazerstafftocomeupwithan approvedbudgetamount,andthenperstatestatute,85%oftheapprovedbudgetiseligiblefor fundingthroughMnDOT.Trailblazercanapproveanannualbudgetamountovertheamount approvedbyMnDOT,butonly85%oftheapprovedMnDOTbudgetiseligibleforthefunding. Anyadditionalamountiscoveredbyridership,servicecontracts,orlocal(countyorcity) government.(Hendricksonin.)TheTrailblazerboardhasanagreementinplacewhereany budgetunderageissplitbypercentagebetweentheparticipatingentitiesthatmakeuptheboard. For2015,withtheadditionofWCAT,theproposedsplitwilllikelybe25%SibleyCounty,25% WrightCounty,and50%McLeodCounty. Ludwigansweredquestionsofthegroup.Thelong-termvisionwouldbetorevisitWright Countyoperatingthisservicein3-5years,withtheWCATJPAbeingdissolved.Thecostinthe budgetiscapitalandoperatingcosts.ItwasalsoexplainedthatWCATwouldberesponsiblefor JointTransitMeetingMinutes–Page3 100%ofthecostsforbeingaddedtotheprogram.Thebudgetfor2015hasnotbeendetermined yetandTrailblazerisworkingwithMnDOTtocomeupwithanapprovedbudgetthatincludes WrightCounty.Howthe25%portionfromWrightCountyispaidwouldbedependentonhow theWCATJPAissetup.TrailblazerhasacontractinplacetotakecareoftheFunctional IndustriescontractsinWrightCounty,buttheyarelookingforapartnerinWrightCounty. TherewasdiscussionaboutserviceforcitiesnotincludedintheWCATJPA.Itwouldbeupto theTrailblazerboardtodeterminehowtheservicewouldcontinue.OnceWCATjoins Trailblazer,theboardwillbesplitwith2membersofSibleyCounty,2membersofMcLeod County,and2membersofWCAT.Itcouldbethatforresidentsincitieswhoarenotpartof WCAT,theywouldhavetopaythepublishedfaretoridethebusandwouldnotgetthe subsidizedfeeormaynothaveserviceatall. Aquestionwasaskedwhatthelocalsharefor2014isanditisestimatedthat$300,000willbe neededtocoverthelocalshare;SibleyCountywillpay$101,000andMcLeodCountywillpay $202,000.ThereisconsiderablegrowthforpublictransportationinWrightCounty,butifthings donotworkout,WCATwillalwayshavetheoptiontooptoutoftheservice.IfWrightCounty HumanServicesworkswithTrailblazerfortransportation,itwouldbebilledthepublishedrate whichis$12/ride.Thatisthenon-subsidizedrate,butitisstilllessthanwhatWrightCountyis currentlypaying. MnDOTOfficeofTransit.TomGottfriedandBevHerfindahlwithMnDOTwerepresentto answerquestionsregardingtheprogrammingandfundingfortransit.GottfriedsaidAugust31st istheapplicationdeadlineforsubmittingabudgettoMnDOT,whichislikelywhythereisthe August1st deadlineforcitiestojointheJPA.Herfindahlansweredquestionsaboutpartnerships betweencitiesandcounties.Trailblazerhasofferedtochangethedynamicofitsboardtomake sureWrightCountyisafullpartnerofthesystem.Thereisa$150,000buy-intotheprogram thatprovidesworkingcapital.MnDOThasbackedthe$150,000buy-inforWrightCountyand WCATwouldhaveuptofiveyearstopaybackthatamount.Ifthereisanymoneyremaining afterRiverRideriscompletelydissolved,itwouldbeputtowardthe$150,000;although,itisnot anticipatedtherewillbemuchleftafterunemploymentbenefitsandauditfeesarepaid. ThegroupdiscussedtheincentiveforSibley&McLeodcountiestobewillingtopartnerwith WrightCounty.ItwasexplainedtheeconomyofscaleswouldbeworkinginTrailblazer’sfavor. TherewouldnotbeahugeamountofaddedadministrativestafftocoverWrightCountyandthe othercountiesfeeltherewouldbebenefitstoexpandingtheprogramtocovermoreareaand population.Gottfriedsaidpublictransportationisnotrequired,butifthereispublictransit offered,thereneedstobealocalpartnerandthereareanumberofrequirementstofollow.It wouldbeuptotheTrailblazerboardtodeterminethebudgetandhowtospendthemoney,which for2015wouldincluderepresentationfromthosecitiesthatarepartofWCAT. WrightCountyCitiesAreaTransitJointPowersAgreement.MertonAugerfromBuffalo andConnieHolmesofWaverlywerepresentastherepresentativesoftheWCATJPA.They JointTransitMeetingMinutes–Page4 revieweddetailsoftheJPAwiththegroupandansweredquestions.Itwasstatedtheformulafor providingthenecessarylocalsharewouldbebasedontheridesoriginatingineachofthecities participatinginWCAT.Itwillbefairandequitableforeachofthecities.Therearecurrently eightcitiesthathavejoinedWCATandthedeadlineforothercitiestojoinisAugust1st.After August1st,thecitiesparticipatinginWCATwillcreateaboardanddeterminetwo representativestobeontheTrailblazerboard.Itwasmadeclearthatcitiesthatwerenotpartof theJPAwouldnothavetheirtransitneedsprioritizedandmaynotreceiveanytransitserviceat all.ThecitieswereencouragedtodiscusstheJPAateachoftheirnextcouncilmeetingsto decidewhethertojoinornot. Afterbriefadditionaldiscussion,themeetingwasadjournedat8:46p.m. Attest: _____________________________________________________________ CityClerkMayor