City Council Agenda Packet 08-10-2009AGENDA
REGULAR MEETING – MONTICELLO CITY COUNCIL
Monday, August 10, 2009 – 7 p.m.
Mayor: Clint Herbst
Council Members: Tom Perrault, Glen Posusta, Brian Stumpf, Susie Wojchouski
1. Call to Order and Pledge of Allegiance.
2A. Approve minutes of July 27, 2009 special meeting.
2B. Approve minutes of July 27, 2009 regular meeting.
2C. Approve minutes of July 31, 2009 special meeting.
2D. Approve minutes of August 4, 2009 special meeting.
3. Consideration of adding items to the agenda.
4. Citizen comments, public service announcements and Council updates.
a. Public Service Announcements, if any:
1)
b. Council Updates:
1)
5. Consent Agenda:
A. Consideration of approving new hires and departures for MCC, Parks, City
Hall and Streets.
B. Consideration of approving a neighborhood block party and closure of 86th
Street cul-de-sac.
C. Consideration of granting one hour deviation to City Ordinance 6-1-10 Noise
Regulation for the Monticello Nuclear Generating Plant on specified training
dates.
D. Consideration of compensating former Deputy City Clerk Dawn Grossinger for
overtime hours.
E. Consideration of ratifying appointment for vacant Monticello Police Advisory
Commission seat.
F. Consideration of approving Plans and Specifications, authorizing
Advertisement for bids, and calling for a Public Hearing for Fallon Avenue
Pavement Rehabilitation, City Project No. 09C005 (2009-05C).
6. Consideration of items removed from the consent agenda for discussion.
7. PULLED FROM AGENDA
8. Consideration of awarding contract for School Boulevard signing and striping improvements,
City Project No. 08C008 (2008-08C).
9. Consideration of authorizing expenditures to gather GIS data from located utilities during
FiberNet construction.
10. Consideration of granting a decrease to the individual pension for Monticello Volunteer
Firefighters Relief Association.
11. Consideration of awarding bid for purchase of a Dial Tone Switch for FiberNet Monticello.
12. Consideration of adopting amended Management Services Agreement between the City of
Monticello and Hiawatha Broadband Communications Inc.
13. Consideration of scheduling 2010 budget workshop/meeting.
14. Discussion of options relating to establishment of retail office space for FiberNet Monticello.
14. Approve payment of bills for August 10th.
15. Adjournment.
Council Agenda: 8/10/09
1
5A. Consideration of approving new hires and departures for MCC, Parks, City Hall and
Streets. (TE)
A. REFERENCE AND BACKGROUND:
The Council is asked to ratify the hiring and departures of employees that have occurred
recently in various departments of the City. It is recommended that the Council officially
ratify the hiring/departure of all new employees including part-time and seasonal workers.
A.1 Budget Impact: None
A.2 Staff Work Load Impact: Until the positions are filled again, existing staff would
pick up those hours.
B. ALTERNATIVE ACTIONS:
1. Ratify the hire/departures of the employees as identified on the attached list.
C. RECOMMENDATION:
By statute the City Council has the authority to approve all hires/departures. There is no
other recommendation but for the Council to exercise the authority given to them by state
statute.
D. SUPPORTING DATA:
List of new and terminating employees.
Name Title Department Effective Date Class
Brian Rousselow Seasonal Parks Worker Parks 7/20/09 Seasonal
Timothy Ernst Streets Maintenance Operator Streets 7/22/09 Temp
Karri Burri Receptionist City Hall 7/29/09 PT
Nicole Tienter Guest Services MCC 7/27/09 PT
Kayla Tibboel Child Care Attendant MCC 7/27/09 PT
Jessica Hiltz Guest Services MCC 7/27/09 PT
Name Reason Department Last Day Worked Class
Nate Iverson Voluntary MCC 7/27/09 Part-Time
Jessica Burns Voluntary MCC 7/1/09 Part-Time
Jennifer Knapp Voluntary MCC 7/31/09 Part-Time
NEW EMPLOYEES
TERMINATING EMPLOYEES
City Council Agenda: 08/10/09
1
5B. Consideration of approving a neighborhood block party and closure of 86th Street NE
cul-de-sac. (CS)
A. REFERENCE AND BACKGROUND:
The City of Monticello recently received a request to close off the cul-de-sac street at 86th
Street NE on Saturday, August 15th from 4 to 11 p.m. to hold a neighborhood block party.
City Council is asked to approve the request for this occasion only. Currently, City
Ordinance does not address closing streets for this type of request. As with previous requests,
the City Council has granted approval on a case-by-case basis.
The Public Works Department will take responsibility for putting up and taking down the
barricades. The Wright County Sheriff’s Department would not have an objection to closing
city streets. However, they will be notified of the date and time of any street closings so they
can monitor the activity. Since a county road is not affected, a permit would not need to be
obtained from the county to block a road.
As previously noted, City staff is currently reviewing policies and procedures used in other
cities for permitting block parties. We anticipate bringing a policy and/or ordinance revision
related to block parties to Council later this summer.
B. ALTERNATIVE ACTIONS:
1. Motion to approve the temporary closing of 86th Street as proposed on Saturday,
August 15th from 4 to 11 p.m. for a neighborhood block party.
2. Motion to deny the request to close the street.
C. STAFF RECOMMENDATION:
City staff does not object to closing the street on this date and time for a neighborhood block
party. Public Works and Wright County Sheriff’s Department will be notified of the event.
City support of these types of requests will encourage neighbors to get to know one another
and create livable neighborhoods.
D. SUPPORTING DATA:
Aerial Illustration
City Council Agenda: 08/10/09
1
5C. Consideration of granting one hour deviation to City Ordinance 6-1-10 Noise Regulation
for the Monticello Nuclear Generating Plant on specified training dates. (JO,CS)
A. REFERENCE AND BACKGROUND
The City of Monticello recently received a request from the Monticello Nuclear Generating
Plant (MNGP) requesting approval for a one hour deviation from the City’s Noise regulations
as noted in City Ordinance 6-1-10 from 10:00 p.m. to 11:00 p.m. They plan to conduct
training of security officers on the dates as shown below. The training includes regulatory
requirements for shooting events to be conducted under low light conditions (after dark).
There is a slight possibility that the firing of weapons could be heard within the surrounding
area and they are seeking approval to hold the training beyond the time allowed in the
ordinance.
The following dates in 2009 have been selected for training. If they would need to reschedule
any of these dates, the City would be notified in advance and could post the information at our
City website.
August 26, 27
September 1, 2, 3
September 8, 9, 10
September 15, 16, 17
September 22, 23, 24
September 29, 30
October 1
A1. Staff Workload Impact: City Staff would notify the Wright County Sheriff’s
Department of the training dates, if approved, and post the information on our City website.
B. ALTERNATIVE ACTIONS
1. Motion to authorize the Monticello Nuclear Generating Plant security forces to conduct up
to 18 low-light shooting training events, ending no later than 11:00 p.m. on the dates
requested, or on substituted dates following notice to the City of the rescheduled dates.
If Council desires, staff could send a notice to residents in advance regarding the training.
2. Motion to deny the request to vary from the 10:00 p.m. regulation of the City Noise
Ordinance 6-1-10.
C. STAFF RECOMMENDATION
Staff recommends approval of the request per Alternative #1 above. Plant facilities include an
on-site shooting range, which is located close to a mile from city residential neighborhoods. It
is not likely that weapons firing will be heard by residents. Staff at MNGP have offered to
provide a tour of their shooting range, if so desired.
City Council Agenda: 08/10/09
2
D. SUPPORTING DATA
July 17, 2009 Letter from Xcel Energy
Copy of City Ordinance Section 6-1-10
Aerial Illustration
City Council Agenda: 8/10/09
1
5D. Consideration of compensating former Deputy City Clerk Dawn Grossinger for
overtime hours. (JO, TE)
A. REFERENCE AND BACKGROUND
On April 12, 2008, as a result of the pay equity study conducted by Sherrie Le, the
Deputy City Clerk position was re-classified from exempt (salaried) to non-exempt
(hourly). It was noted at that time that Grossinger’s job had not changed recently and
that, for some time, the City may have been inadvertently compensating her under the
wrong classification; and therefore, this is cause to consider providing some back pay for
overtime hours in order to make it right.
Coincidentally, well over three years ago before initiation of the pay equity study, Dawn
Grossinger had requested that Rick Wolfsteller examine her position to determine if the
position was classified appropriately. Wolfsteller recently reported to Jeff O’Neill that at
the time of Grossinger’s initial request, he had reviewed Grossinger’s position and
determined that is was properly classified as exempt. Although Wolfsteller confirmed
that he reviewed her status and determined the position was exempt, there is some
question as to whether Grossinger was indeed classified appropriately at that time.
Grossinger noted that Rick Wolfsteller did not adequately respond to her initial request to
have her position reviewed and it was not fully reviewed and reclassified until adoption
of the pay equity study in April of 2008.
Although the issue goes back further than two years, the City has been advised by
attorney Susan Hansen that, if Grossinger were to file an official Fair Labor Standards
Act (FLSA) complaint, the City could be required to pay overtime back wages up to two
years prior to the re-classification along with attorney fees and possible liquidated
damages.
The Personnel Committee working with Dawn Grossinger have reviewed that matter and
jointly agree on a overtime compensation package going back two years prior to the re-
classification to non-exempt on April 12, 2008. The result is a gross amount of
$21,842.50 for 545.5 hours of overtime.
B. ALTERNATIVE ACTIONS:
1. Motion to pay Dawn Grossinger overtime back wages in the amount of
$21,842.50 (545.5 hours of overtime) for the two year time period prior to her
reclassification on April 12, 2008.
2. Motion to deny payment to Dawn Grossinger of overtime back wages in the
amount of $21,842.50.
City Council Agenda: 8/10/09
2
C. STAFF RECOMMENDATION:
The Personnel Committee has actively been working with Grossinger to settle this matter
in a fair and equitable manner. We have consulted with attorney Susan Hansen on this
matter and feel that a payment of $21,842.50 for overtime back wages owed is deserved
and appropriate.
D. SUPPORTING DATA:
Copy of email as verification of Grossinger’s acceptance of financial arrangement.
Council Agenda: 8/10/09
1
5E. Consideration of ratifying appointment for vacant Police Advisory Commission
seat. (BW)
A. REFERENCE AND BACKGROUND:
City Ordinance Title 2, Chapter 7 is attached as supporting data and states that the
Police Advisory Commission shall consist of five voting members, which includes
one voting City Council member and four general voting members, who shall be any
adult resident of the City as appointed by the City Council. It also states that should
one of the four general members resign, the City Council shall appoint a new general
member to serve the remainder of the term.
On April 15, 2009, Commissioner David Gerads, who had been on the Commission
since its inception, resigned due to a conflict between his work schedule and the
schedule of the Police Advisory Commission meetings. This vacancy was
immediately advertised in the Monticello Times and notices were posted on bulletin
boards in the Community Center seeking applicants to fill the vacant position.
On Thursday, July 30th and Monday, August 3rd the Police Advisory Commission
interviewed the only two (2) candidates who applied for the position, with the intent
being that the winning candidate would fill the vacant Police Advisory Commission
seat for the remainder of Mr. Gerads term, which would have ended on December
31, 2009. Immediately following the second interview the four remaining voting
members voted to appoint candidate Jason Roubinek to fill the vacant seat. The vote
passed two to one, with one voting member abstaining from the vote since he was a
neighbor of one of the candidates.
The Police Advisory Commission also voted to request that the City Council
consider whether any new members of the Commission should be required to pass a
criminal background check prior to being appointed to the Commission, considering
it is the duty and function of the Commission to offer recommendations to the City
Council in areas pertaining to public safety and general police work, including their
coverage hours and budget.
A.1 Budget Impact: The only impact to the budget associated with this item
would be if the Council determines that background checks should be
performed on Police Advisory Commission applicants, which would cost the
City $25 per background check.
A.2 Staff Workload: There are no anticipated impacts to City staff, with the
exception being that if the Council determines that background checks
should be performed on Police Advisory Commission applicants the HR
Director will need to expend about 15 minutes completing each background
check.
Council Agenda: 8/10/09
2
B. ALTERNATIVE ACTIONS:
1. Motion to ratify the Police Advisory Commission’s recommended appointment
of Jason Roubinek to the vacant Police Advisory Commission seat, contingent on
the applicant passing a criminal background check.
2. Motion to immediately ratify the Police Advisory Commission’s recommended
appointment of Jason Roubinek to the vacant Police Advisory Commission seat.
3. Motion to deny ratification of Jason Roubinek to the vacant Police Advisory
Commission seat.
4. Motion of other.
C. STAFF RECOMMENDATION:
The Police Advisory Commission recommends approving Alternative Action No. 1
or Alternative Action No. 2, depending on whether the City Council feels a criminal
background check should be required for all appointments to this Commission.
D. SUPPORTING DATA:
City Ordinance 2-7, Police Advisory Commission
Jason Roubinek Position Application
Council Agenda: 8/10/09
1
5F. Consideration of approving Plans and Specifications, authorizing Advertisement
for Bids, and calling for a Public Hearing for Fallon Avenue Pavement
Rehabilitation, City Project No. 09C005 (2009-05C). (B.W.)
A. REFERENCE AND BACKGROUND:
On May 26th Council authorized preparation of a Feasibility Report to explore costs for
improving Fallon Avenue between School Boulevard and Chelsea Road. Council
instructed staff to investigate proposed projects consisting of reclaiming and repaving
the road as a rural section, which is its current condition, as well as constructing a deep
sanitary sewer interceptor line and reconstructing Fallon Avenue as an urban section.
On July 13th staff presented the completed Feasibility Report to Council, at which time
Council accepted the report and authorized staff to prepare Plans and Specifications for
an improvement project consisting of reclaiming and repaving Fallon Avenue as a 24-
foot wide rural section, while also allowing for an alternate bid for a 28-foot wide rural
section to better accommodate existing and future traffic, which includes higher than
average percentages of bus and truck volumes.
Staff has since completed Plans and Specifications, including the requested bid alternate,
and is hereby asking Council to approve the Plans and Specifications, to authorize
Advertising for Bids, and to call for a Public Hearing on September 14, 2009, at which
time the estimated project costs will be presented to the Council and all benefitting
property owners in detail. Staff is currently exploring all potential assessment scenarios
and will discuss them in detail with Council on August 24th, which should allow staff the
necessary time to address Council’s comments before the Public Hearing.
As previously discussed with Council, the existing bituminous pavement is in extremely
poor condition but the City has been waiting to reconstruct Fallon Avenue until such
time that the deep sanitary sewer trunk line needed to be extended to the south under
Fallon Avenue to serve future development. Staff currently anticipates that this sanitary
sewer trunk line will likely not be needed for 8 or more years so we recommend that
Council approve the Plans and Specifications and authorize Advertising for Bids so this
pavement rehabilitation project can be completed this year yet.
The cost estimate for the base 24-foot wide rural roadway is $288,486, and the estimate
for the alternate 28-foot wide rural roadway is $343,230, both of which include 20%
indirect costs for administrative, legal and engineering fees.
A.1 Budget Impact: The 2009 budget includes roughly $1,800,000 in the Street
Reconstruction Fund which can be used for all or a portion of this improvement
project. As previously discussed, assessments to benefitting properties should
also be considered for potential funding sources.
A.2 Staff Workload: Impacts to City staff will include time as needed for
administrative, project management, and construction inspection work tasks.
Council Agenda: 8/10/09
2
B. ALTERNATIVE ACTIONS:
1. Motion to approve Plans and Specifications, to authorize Advertisement for Bids,
and to call for a Public Hearing on Monday, September 14, 2009 for City Project No.
09C005, Fallon Avenue Pavement Rehabilitation.
2. Motion to deny approval of Plans and Specifications for City Project No. 09C005,
Fallon Avenue Pavement Rehabilitation, at this time.
3. Motion of other.
C. STAFF RECOMMENDATION:
City staff recommends approving Alternative Action No. 1. This will allow for more
time for future development south of the City to occur, at which time those developers
can help pay for construction of the deep sanitary sewer trunk line.
D. SUPPORTING DATA:
None.
Council Agenda: 8/10/09
1
8. Consideration of awarding contract for School Boulevard Signing and Striping
Improvements, City Project No. 08C008 (2008-08C). (B.W.)
A. REFERENCE AND BACKGROUND:
This project consists of various signing and striping improvements along School Boulevard
from CSAH 18 to the Extreme Bowling Center west of TH 25, as well as some minor
striping improvements on 7th Street west of TH 25, and on East Broadway east of CSAH 18.
Most of the improvements were previously discussed with Council and are being proposed
for the following purposes:
a. The existing speed limits on Chelsea Road between TH 25 and Fallon Avenue, on
Edmonson Avenue between Chelsea Road and 87th Street, and on School Boulevard
between CSAH 18 and TH 25 need to be reposted to comply with the results of
recent Mn/DOT speed studies (see attached green sheet update from 5/11/09).
b. The City Council requested that staff remove all unnecessary signing on School
Boulevard between Edmonson Avenue and TH 25 to reduce sign clutter. It has
since been determined that 12 signs can be removed from this corridor and that
several other signs should be relocated.
c. The School District requested that the City review the signing and striping on
School Boulevard between CSAH 18 and Fallon Avenue to determine if the existing
crosswalks and lane configurations can be revised to provide safer pedestrian and
vehicle access and egress at each of the schools. Staff completed their review of the
corridor and developed the plans that are attached as supporting data. Staff
discussed these plans with Jim Johnson and the school principals and they approve
of the plans as shown. This includes removing parking along School Boulevard
between CSAH 18 and Stoneridge Drive, and removing the mid-block pedestrian
crosswalk in front of Monticello High School to provide for better vehicle access
and egress at the High School. The pedestrian crossing was shifted to the west to
Eider Lane since only 5 High School students used this crossing on any single day.
d. The pedestrian crossing across School Boulevard at Deegan Avenue is not striped,
and drivers are not following their lane assignments through the intersection. As
such this improvement project includes the installation of zebra crosswalk striping
across School Boulevard east of Deegan Avenue, and additional striping within the
intersection to assist drivers to stay within their lanes.
e. The pedestrian crossing across East Broadway, east of CSAH 18, is not currently
striped. This crosswalk connects the sidewalk west of CSAH 18 along the Union
Crossings commercial development with the bituminous pathways east of CR 39
along the Broadway Market commercial development and south of East Broadway.
f. The lane line and pedestrian crossing striping on 7th Street west of TH 25 is worn
and requires restriping. It should be noted that no striping is being proposed at the
Council Agenda: 8/10/09
2
intersection of Walnut and 7th Streets since this intersection cannot be striped with
dedicated turn lanes until such time that the southerly curb line on 7th Street west of
Walnut is relocated to the south to allow dedicated left turn lanes on both sides of
the intersection to directly oppose each other.
Following preparation of the attached plans, staff obtained a quote from AAA striping in the
amount of $49,715.86 for the proposed striping improvements as described herein and on
the attached plans. This cost includes $7,678.50 for removals of existing striping on School
Boulevard between CSAH 18 and Fallon Avenue. Since the Streets Department was
planning on budgeting for a sealcoat project on this section of School Boulevard in 2010,
and since there is just enough money left in the budget for this year’s sealcoat project to
complete this work, staff is proposing to sealcoat this section of School Boulevard to save
the $7,678.50 in striping removal costs. This would reduce the costs for the proposed
striping improvements to $42,037.36.
All proposed signing improvements can be completed by our Streets Department staff. The
estimated cost for the necessary signing improvements is $3,500 which includes reposting
all the speed limits as noted above and installing signs identifying the proposed center two-
way turn lane, designated left and right turn lanes, and pedestrian crossings on School
Boulevard. Staff will of course salvage and reinstall signs whenever possible. This signing
work would need to be completed immediately following any striping improvements.
The improvements proposed herein can all be completed before schools open on September
8th should Council vote to approve these improvements this evening.
A.1 Budget Impact: Funds for the striping improvements could be taken from
the City’s consolidated bond fund and/or the Street Reconstruction Fund.
Funds for the signing improvements would be taken from the Street
Department’s maintenance budget.
A.2 Staff Workload: Impacts to City staff will include impacts to Streets
Department staff who will install the signs and posts as outlined herein and
on the attached plans. In addition, some Engineering Department staff time
will be required for administrative, project management and construction
inspection work tasks.
B. ALTERNATIVE ACTIONS:
1. Motion to authorize expenditures for School Boulevard Signing and Striping
Improvements, City Project 08C008, including awarding a contract with AAA Striping
in the amount of $42,037.36.
2. Motion to deny expenditures for said improvements at this time.
3. Motion of other.
Council Agenda: 8/10/09
3
C. STAFF RECOMMENDATION:
City staff recommends approval of Alternative Action No. 1 in order to provide safer
pedestrian crossings and to allow for safer vehicular access and egress to the schools. If
Council chooses not to proceed with this project this year, staff will defer seal coating this
section of School Boulevard until next year, at which time it will then need to be restriped.
D. SUPPORTING DATA:
Signing and Striping Improvement Plans
Quote from AAA Striping
Council Agenda: 8/10/09
1
9. Consideration of authorizing expenditures to collect GPS data from located utilities
during FiberNet construction. (BW)
A. REFERENCE AND BACKGROUND:
During construction of our FiberNet system the vast majority of underground utilities within
City limits, including both public and private utilities, will be located on the surface of the
ground using spray paint and flags. This will represent a rare opportunity for the City to
collect this existing utility data through the use of Global Positioning System (GPS) data
collectors. Currently the City utilizes available as-built information within our Geographic
Information System (GIS) to identify where our underground utilities are located. This
information is used by City staff primarily during the design of public improvement projects
and when reviewing private utility permit applications to ensure there are no conflicts with
our public utilities. In addition, this information is shared with private developers to allow
them to properly design the utility connections to serve their developments. Therefore, the
more accurate our existing utilities information is the better we can ensure that all new
infrastructure will be adequately and cost-effectively designed, and that new private utilities
will be constructed with minimal conflicts and impacts to existing utilities.
Until now, using our utility as-builts was the only means we had for determining where the
existing utilities are. The main issue with the use of as-built information is that our as-builts
are sometimes incomplete, especially when it comes to older improvement projects. As
such, a certain level of error is assumed when using or sharing our as-built information.
Therefore, if we are able to collect the utility locate information generated during
construction of the FiberNet project we would be more confident in using and sharing our
utility information and we could ensure that our designs would contain fewer errors, and
that fewer conflicts and impacts would occur during construction, which would both result
in long-term cost savings.
Staff has identified a couple of ways this data collection process could occur. One way
would be for the City to purchase another GPS data collection unit. We currently own one
GPS unit, which was purchased through the Sewer and Water Department last year, but this
unit is used extensively by their staff for the purpose of locating utilities in the field and as
such staff is not recommending using that unit exclusively for collecting utility locate data
during the FiberNet project since construction will continue through 2010. The cost of a
new GPS unit that would have the level of accuracy needed for locating utilities (sub-foot)
is approximately $14,000. City staff would collect the utilities locate data during
construction of the FiberNet project. The purchase process would likely take about two
weeks, but during that time we could share our other GPS unit as needed to collect the data.
Alternatively, the City could rent a GPS unit and utilize City staff to complete the data
collection, similar to the first option. While this is an option, staff would not recommend
this option as the City will need to purchase a second GPS unit in the near future anyway so
the money spent on renting a unit would be better spent on the purchase of a new one.
Council Agenda: 8/10/09
2
Another option would be to utilize WSB and Associates to collect the data. They provided
us with a quote of $50,000 to collect all the utilities locate data throughout construction of
the FiberNet project. This amount assumes their surveyors can collect 1-1/2 miles of data
per day, and that they will spend between 40 and 45 days collecting the data in the field.
This amount also includes all required CAD work, and 1 week of quality assurance/quality
control work prior to delivering the final product to the City. It should be noted that this
amount reflects a discounted hourly rate of $105 per hour for their survey crew, which they
normally charge $140 per hour for. This option would of course reduce impacts to City
staff time since WSB’s crews would be collecting and downloading the data themselves.
Council could also consider a combination of the above options by directing staff to
purchase a new GPS unit and collect as much of the data as we can ourselves, with the
understanding that if staff found they didn’t the time to collect all the data that WSB could
assist in collecting the data, using the hourly rates as outlined herein.
A.1 Budget Impact: Staff has identified several possible sources of funding for
this work. The work could be paid for by splitting the costs between the
sewer and water funds and the stormwater department since all would
benefit by our collecting data on those systems. We could also open
discussions with the private utilities to see if they would be willing to
contribute to the costs since we could provide data on their systems back to
them, which as I understand it most of them do not have accurate as-built
information currently.
A.2 Staff Workload: Impacts to City staff will vary depending on which option
Council approves. If City staff is exclusively used to collect the data it will
result in extensive impacts to Engineering Department staff time, but if
WSB is utilized on a full or part-time basis the impacts to City staff would
be reduced accordingly, depending on WSB’s actual level of involvement.
B. ALTERNATIVE ACTIONS:
1. Motion to authorize purchase of a new GPS data collector at a not-to-exceed amount of
$14,000 and to authorize staff to collect all of the utilities locate data during
construction of the FiberNet project.
2. Motion to authorize purchase of a new GPS data collector at a not-to-exceed amount of
$14,000 and to authorize staff to collect as much of the utilities locate data during
construction of the FiberNet project as possible and to utilize WSB to collect remaining
data if needed.
3. Motion to authorize WSB and Associates to collect all of the utilities locate data during
construction of the FiberNet project at a not-to-exceed amount of $50,000.
Council Agenda: 8/10/09
3
4. Motion to deny expenditures related to utilities data collection during construction of the
FiberNet project.
C. STAFF RECOMMENDATION:
City staff recommends approving Alternative Action No. 2 due to the timeliness of this
request since construction of the FiberNet project is already underway. This would allow
staff to enlist WSB’s assistance to help collect data while we await delivery of the new GPS
unit if the existing City-owned GPS unit is unavailable, and in case staff’s workload
increases during construction of the FiberNet project.
D. SUPPORTING DATA:
None.
City Council Agenda: 8/10/09
1
10. Consideration of granting a decrease to the individual pension for Monticello Volunteer
Firefighters Relief Association. (MJ, TK)
A. REFERENCE AND BACKGROUND:
The Firefighters Relief Association membership is requesting the City Council approve one of
three options, all of which result in a decrease in their retirement benefit from the present
$3,500 per year of service for members with more than 20 years of service on the fire
department. The three benefit options to consider would be as follows
Option 1: A benefit level of $2,675, which would require a City contribution of $2,611.
Option 2: A benefit level of $2,650, which would require a City contribution of $984.
Option 3: A benefit level of $2,625, which would not require a City contribution.
The following is a summary of the previous benefit changes that have been approved:
Year Benefit Amount
2000 $2,085
2001 $2,175
2003 $2,225
2004 $2,625
2005 $3,050
2006 $3,275
2007 $3,950
2008 $3,500
By August 1st of each year, the Fire Relief Association is to present to the City Council a
schedule of the proposed benefits and the total liabilities associated with the proposed benefit
in comparison to the assets of the association. The schedules enclosed with the agenda
indicate the decreased benefit amount to members and resulting City contributions required.
The Monticello Relief Association is recommending option 2, which would decrease the
benefit level by $850.00 to $2,650 and would require a City contribution of $984.00.
Most of the income for the Association relates to the State Aid, which for 2009 is projected to
be $76,300 compared to $88,750 in 2008. The State Aid must be used entirely to support the
pension of the Relief Association. Investment earnings from the Association’s assets are also
down from prior years.
In the past, City Council has generally approved an adjustment to the yearly pension if the
association has sufficient income projected to cover the increase. In other words, the State
Aid and interest earnings on investments needed to be at a sufficient level to cover normal
costs of the pension calculations and would require no additional City contribution. Only
option 3 at $2,625 meets this criteria.
City Council Agenda: 8/10/09
2
It should be noted that, as the benefit amount increases, the active member liability of the
Relief Association increases, thus creating a larger projected deficit for the Association. If the
City desires to eliminate or reduce the deficit, the City would need to approve a lower benefit
amount and provide a contribution to the fund balance or investment accounts of the
Association.
A1. Budget Impact: The 2009 budget contains a contribution of State Aid Fire Relief of
$101,000 and offsetting revenues of $101,000. The estimated amount is only $76,300.
The additional contribution for option 1 or 2 was not budgeted.
A2. Staff Workload Impact: There is no staff impact with this decision.
B. ALTERNATIVE ACTIONS:
1. Approve benefit level of $2,650 and a City contribution of $984 (option 2).
2. Approve benefit level of $2,625 and no City contribution (option 3).
3. Approve benefit level of $2,675 and a City contribution of $2,611 (option 1).
4. Approve a different benefit level and possible City contribution.
C. STAFF RECOMMENDATION:
The Monticello Fire Relief Association recommends Alternative #1, which results in a benefit
level of $2,650 and a City contribution of $984. City staff has no recommendation.
D. SUPPORTING DATA:
Schedule Forms for various Lump Sum Pension Plans options, Reporting Year 2009.
City Council Agenda: 8/10/09
1
11. Consideration of awarding bid for purchase of a Dial Tone Switch for FiberNet
Monticello. (DP, JO)
A. REFERENCE AND BACKGROUND:
On August 6, 2009, the City received a bid from MetaSwitch for the purchase of the Dial-
tone Switch supporting FiberNet telephone service. MetaSwitch was the single bidder
among four potential bidders capable of providing the equipment. Although only one bid
was submitted, the amount of the bid ($420,000) was significantly below the budgeted
figure ($550,000). Please note that the specifications were written in a fashion assuring a
high quality instrument without being so tight as to indirectly cause to exclude other
vendors. Please also note that it is proposed that the level of training identified in the bid
be reduced to better match the needs of HBC/City staff. Accordingly, the actual bid
award amount, minus the level of training proposed, results in a proposed contract in the
amount of $379,534.
Please note that two additional instruments will be purchased soon at an estimated cost of
$70,000. Vendors selling these items will be selected via a quote process and brought to
the City Council for purchase at a later date in accordance with city and state purchasing
guidelines. In sum, the cost of the Metaswitch plus projected cost of additional items
amounts to approx $450,000. The original budget for these articles as identified in the
business plan is $550,000.
B. ALTERNATIVE ACTIONS:
1. Motion to accept the bid and authorize execution of a contract with Metaswitch
on the purchase of a Dialtone Switch in the amount of $379,534.00.
2. Motion to table or deny request.
C. STAFF RECOMMENDATION:
Staff recommends Alternative #1.
D. SUPPORTING DATA:
MetaSwitch company information and specifications of electronics equipment
City Council Agenda: 8/10/09
1
12. Consideration of Adopting Amended Management Services Agreement between the
City of Monticello and Hiawatha Broadband Communications Inc. (JO)
A. REFERENCE AND BACKGROUND:
The City Council is asked to consider adopting modifications to the original agreement
that are being proposed in conjunction with submittal of an application for membership in
the NCTC (National Cable Television Cooperative). Under the original agreement
approved in May of 2008, it was anticipated that the City would obtain television
programming via HBC and its associated membership in the NCTC. Subsequent to
adoption of this agreement, the NCTC opened up membership to others which now
provides the City with the opportunity to become a member directly. Although
obtaining television from NCTC through HBC is acceptable, being a direct member of
NCTC is preferred as direct membership provides greater latitude for operating Fibernet
independent of a management services contract at some point in the future. Once the
modification as proposed is made, the revised agreement will be attached to the
application for City membership in the NCTC as important supporting data. Please note
that HBC/Don Patton will continue to represent the City acting as the City’s agent in
dealings with the NCTC.
In an email, Joel Jamnik noted that he is comfortable with the redlined amendments from
a legal perspective. In my opinion, they conform well with the parties’ current plan to
have NCTC membership in the City’s name.
B. ALTERNATIVE ACTIONS:
1. Motion to adopt amended Management Services Agreement between the City of
Monticello and Hiawatha Broadband Communications Inc.
2. Motion to deny adoption of amended Management Services Agreement between
the City of Monticello and Hiawatha Broadband Communications Inc.
C. STAFF RECOMMENDATION:
Staff recommends Alternative #1.
I am completely comfortable with the redlined amendments from a legal perspective. In
my opinion, they conform well with the parties current plan to have NCTC membership
in the City’s name. If we have to alter the plan and go with one of our contingency plans,
we can re-insert the red-line language or modify it to reflect the changed circumstances.
D. SUPPORTING DATA:
Copy of proposed amended Management Services Agreement
Copy of original Management Services Agreement
1
AGREEMENT
This agreement is by and between Hiawatha Broadband Communications, Inc., a corporation under the laws
of the State of Minnesota, with offices at 58 Johnson Street, Winona, MN 55987 ("HBC"), and City of
Monticello, a municipal corporation and political subdivision under the laws of Minnesota, with offices at 505
Walnut Street, Monticello, MN 55362, acting through its communications enterprise known as FiberNet
Monticello (“FiberNet”).
Recitals
A. HBC owns and operates a communications system providing video, voice and data services
to customers in Winona, Minnesota and other communities.
B. FiberNet intends to build and operate a fiber to the premise (“FTTP”) communications
system capable of delivering video, voice and data services to customers in Monticello,
Minnesota (the “System”).
C. The parties have agreed that HBC will provide certain services, as more particularly
described herein and upon the terms and subject to the conditions stated herein.
The parties therefore agree as follows.
1. This Agreement will commence on the date of its execution, and shall continue in effect for an initial
term ending three (3) years after the System first launches commercial service to customers.
Thereafter this Agreement may be extended for such period and upon such terms as the parties
agree in writing. This Agreement may be terminated as provided in paragraph 15 hereof.
2. FiberNet shall be responsible for and shall bear the costs of designing, building, maintaining and
operating the System, including the FTTP network, all voice and data switching and routing
equipment, all customer premise equipment and wiring, and all offices and other facilities. HBC shall
be consulted and shall provide advice and assistance with respect to system design and
specifications, mapping, equipment and vendor selection, and other matters bearing on the
successful performance and operation of the System.
3. HBC will provide management services for operation of the System. The management
responsibilities will include:
a. Hiring a general manager for the system.
b. Recommending the hiring of other System personnel, and training and supervising them.
c. Preparing an annual business plan, including budgets of operating revenues and
expenses and capital expenditures.
d. General management of System operations, in accordance with the annual business plan
and in compliance with Governance Ordinances for FiberNet.
d. Preparing periodic financial and operational reports.
4. The general manager shall be employed and compensated by HBC. Selection of the general
manager shall be with the assent of FiberNet and FiberNet may request the removal of the general
manager. All other employees of the System shall be employed and compensated by FiberNet.
2
They shall be selected and recommended for employment by the general manager, who shall be
responsible for their training, supervision, evaluation, discipline and termination, subject to any legal
requirements applicable to public employees of FiberNet.
5. In addition to general management of the System, HBC shall provide the following services during
the periods indicated:
a. Training and support of customer service personnel and operations, during the three months
following employment of the initial customer service personnel.
b. Training and support of employed installers and general supervision of contract installers,
during System construction.
c. Planning and supervision of marketing and business promotion, during the term of the
Agreement.
These services shall be provided without charge to FiberNet for the periods indicated. HBC will
provide the services described in subparagraphs a. and b. above, after the periods indicated, if
requested by FiberNet, for the charges provided in paragraph 12(b).
6. HBC shall manage the video content. This shall consist of negotiating and administering
agreements with content providers, processing license fee payments, channel lineup development
and regulatory filings. The video content of the System shall be selected by the FiberNet Advisory
Board from available programming and mutually agreed by the parties, subject to the ability of HBC
to secure necessary agreements or authorization for retransmission to System subscribers. HBC
shall not be responsible to FiberNet or to any subscriber for the refusal of a content provider to enter
into an agreement or grant authorization, for the termination or suspension of any agreement or
authorization by a content provider, nor for any failure or interruption of the signal of a content
provider.
7. Video signals shall be delivered to System subscribers over the FTTP network.
8. HBC shall provide billing services for the System, employing automated billing software to
generate customer bills for video, voice and data services. FiberNet will be responsible for
terminals and connection to the HBC computer system, and for initial setup and training. Bills
shall be printed and mailed by HBC or its mail fulfillment vendor. Payments shall be directed to
FiberNet, and FiberNet shall be responsible for collections.
9. All revenues from operations of the System shall be received by FiberNet and applied by FiberNet
to payment of (a) the HBC charges specified herein, (b) franchise and regulatory fees, content
charges, and other operating expenses, and (c) debt service on bonds issued for the System.
FiberNet shall be entitled to any surplus of revenues over such expenses, and shall bear the risk
of losses not covered by revenues.
9. The fees and charges of HBC for the services to be provided by it hereund er shall consist of the
following:
a. For general management services, a fee of $15,000.00 per month, beginning with the
commencement of construction of the System or, if earlier, employment of the general
manager. Before the occurrence of either event, HBC will provide consultation by its
management team at their customary hourly charges.
b. For training and support services, a fee of $75.00 per hour of HBC staff time plus
reasonable expenses or allowances for travel and subsistence.
3
c. For NOC services, a fee of $100.00 per hour of HBC staff time.
d. For technical support services, a fee of $1.25 per subscriber per month.
e. For video content management, a monthly fee based on subscriber services and market
penetration, calculated as follows:
1) Less than 15% market penetration
$3.00 per month for each single-service customer
$4.00 per month for each two-services customer
$5.00 per month for each three-services customer
2) Greater than 15% but less than 30% market penetration
$2.00 per month for each single-service customer
$3.00 per month for each two-services customer
$4.00 per month for each three-services customer
3) Greater than 30% market penetration
$1.00 per month for each single-service customer
$2.00 per month for each two-service customer
$3.00 per month for each three-service customer
In calculating market penetration, the market will equal the number of potential services
(three times the total number of customer passings, including MDU units). Penetration
will equal total services in place divided by the market. For example, if the System
passes 1,000 potential customers and three services are available, the market would
equal 3,000. If 500 subscribers took an average of 2 services, total services in place
would equal 1,000 and penetration would equal 33⅓ % (3,000 ÷ 1,000).
f. For billing services, a fee equal to $2.50 per customer per month. This fee includes
envelopes, paper and postage and up to three inserts furnished by FiberNet. The fee is
subject to adjustment to reflect changes in the cost to HBC of such items. Any
modifications or additions to HBC’s billing software requested by FiberNet would subject
to agreed additional charges.
g. For use of OSS systems, a fee equal to $2.00 per customer per month..
10. The number of subscribers and services shall be determined as of the last day of each month.
On commercial bulk units (hospitals, hotels, motels, etc), the number of subscribers shall be
calculated by dividing the monthly bulk payment by the standard subscriber rate for the programs
and services provided. The fees specified in section 12 hereof shall be paid on or before the 15th
day of the next month.
11. Neither HBC nor FiberNet makes any warranty of any kind, expressed or implied, to the other or to
any subscriber or other person, as to the condition or quality of any service to be provided hereunder,
including any implied warranty of fitness of any service for a particular purpose. In case of any
interruption of the service provided hereunder, caused solely by fault or neglect of HBC or FiberNet,
the sole liability of the responsible party shall be to credit customers for such interruption with a
portion of the monthly charge for the service, on a prorated basis. Neither HBC nor FiberNet shall
have any other responsibility for any loss or damage suffered by the other or any subscriber or other
person, including but not limited to property damage, delays or interruptions of service, or loss of
business or profits, whether caused by the negligence or other fault of HBC or FiberNet or any other
cause.
4
12. This Agreement may be terminated as follows:
a. By written agreement of the parties.
b. By either party for cause, consisting of a material default by the other party that is not
remedied within 30 days after written notice specifying the default, or within a reasonable
time if the condition constituting the default is not capable of being remedied within 30 days,
and if the party in default promptly undertakes and diligently pursues action to remedy the
condition.
c. By either party, without stated cause, by written notice given at least 90 days before the end
of the initial term or any renewal term.
13. Upon termination of this Agreement for any reason, unless otherwise agreed by the parties:
a. Neither party shall, for a period of two years following such termination, employ any person
employed by the other party at the time of termination.
b. The parties will comply with applicable legal requirements concerning customer information.
c. Neither party will use or disclose to others any confidential or proprietary information of the
other acquired as a result of this Agreement.
14. The parties hereby agree that all disputes arising out of this Agreement shall be submitted to
binding arbitration in accordance with procedures and by an arbitrator mutually agreeable to the
parties or, if no such agreement is reached within 30 days after a demand for arbitration, in
accordance with the Rules for Non-Administered Arbitration of the CPR Institute for Dispute
Resolution then in effect. The location for any arbitration shall, unless otherwise agreed, be in St.
Paul, Minnesota.
In Witness Whereof, the parties have entered into this agreement, effective this ____ day of
_____________, 2009.
HIAWATHA BROADBAND CITY OF MONTICELLO
COMMUNICATIONS, INC.
By __________________________ By____________________________
Its ___________________________ Its ___________________________