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2019-07-15 City Council Agenda Packetlbcrtvijje Small living. flfg life. City of Albertville Council Agenda Monday, July 15, 2019 City Council Chambers 7:00 p.m. 6:00 p.m. — Haley Rogers Reception, Multipurpose Room — City Hall PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings, are invited to do so under Public Forum and are asked to fill out a "Request to Speak Card". Presentations are limited to five (5) minutes. 1. Call to Order 2. Pledge of Allegiance — Roll Call 3. Recognitions — Presentations — Introductions A. Recognition of Haley Rogers, Queen of the Lakes and Former 2017-2018 Miss Albertville B. Employee Years of Service Recognition — Tina Lannes C. Long Range Financial Plan — Presented by Andy Berg, ABDO (Separate Cover) 4. Public Forum — (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the June 17, 2019 regular City Council meeting minutes as presented (pgs 4- 7) B. Authorize the Monday, July 15, 2019 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request (pg 8) C. Accept Fire Department Update (pgs 9-12) D. Accept 2'rd Quarter Budget to Actual Report (pgs 13-15) E. Accept Accounts Receivable Report (pgs 16-18) F. Approve A Temporary Outdoor Music Permit for the 152 Club, Inc for September 14, 2019 from 8:00-11:59 p.m. (pgs 19-25) P:ACity Council\Council Agendas\2019 Agenda Packets\2019-07-15 City Council Agenda.docx Meeting Date: July 15, 2019 Agenda Page 1 City of Albertville Council Agenda Monday, July 15, 2019 Page 2 of 3 G. Approve A Temporary Outdoor Music Permit for the 152 Club, Inc for September 28, 2019 from 4:00-11:59 p.m. (pgs 26-29) H. Approve Partial Pay Estimate No. 2 to Valley Paving, Inc. in the amount of $80,493.82 for 2019 Street Improvements project 7. Public Hearings — None 8. Department Business A. Finance 1). General Obligation Sanitary Sewer Revenue Bonds Series 2019A (pgs 30-70) • (Motion to Accept the Finance Plan for the General Obligation Sanitary Sewer Revenue Bonds Series 2019A) • (Motion to Approve the Municipal Advisory Agreement between the City and Northland Securities for the General Obligation Sanitary Sewer Revenue Bonds Series 2019A.) • (Motion to Adopt Resolution No. 2019-028 for the issuance and sale of approximately $5, 720, 000 General Obligation Sanitary Sewer Revenue Bonds, Series 2019A.) • (Motion to Approve Resolution No. 2019-029 for the issuance of General Obligation Sanitary Sewer Revenue Bonds Series 2019A covenanting and obligating the city to be bound by and use the provisions of Minnesota statues, section 446A.086 to guarantee the payment of the principal and interest on the bonds) 2). Tort Liability Insurance Renewal (pgs 71-78) (Motion to not waive the City's monetary limits on tort liability established by Minnesota Statues, Section 466.04.) B. Planning/Zoning 1). PS Deck Site Plan and CUP for Limited Light Industrial Use (pgs79-89) (Motion to Adopt Resolution Number 2019-030 Approving a Site Plan and Conditional Use Permit for PS Deck for Limited Light industrial Use at 6737 Labeaux Avenue NE. ) 2). Rigs to Rods Site and Building Plans, CUP and Interim Use Permit (pgs 90- 105) (Motion to Adopt Resolution Number 2019-031 Approving Rigs to Rods Site and Building Plans, Conditional Use Permit and Interim Use Permit 6737 Labeaux Ave NE.) P:ACity Council\Council Agendas\2019 Agenda Packets\2019-07-15 City Council Agenda.docx Meeting Date: July 15, 2019 Agenda Page 2 City of Albertville Council Agenda Monday, July 15, 2019 Page 3 of 3 C. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) D. City Clerk 1). Waiver of License Fee for Centennial Celebration Mobile Food Trucks (Motion to authorize waiver of application fee for Mobile Food Trucks only participating in the Centennial Celebration.) E. Fire — None F. Public Works/Engineering — None G. Building — None H. Legal —None I. Administration 1). City Administrator's Update (pgs 106-107) 9. Announcements and/or Upcoming Meetings July 25 Fire Business Meeting, 8:00 p.m. July 30 Fire Advisory Committee, 6:00 p.m. July 22 Joint Powers Water Board, 6:00 p.m. Centennial Planning, 7:00 p.m. August 5 City Council, 7:00 p.m. August 12 STMA Ice Arena Board, 6:00 p.m. August 13 Planning Commission, 7:00 p.m. August 19 City Council, 7:00 p.m. August 26 Joint Powers Water Board, 6:00 p.m. Parks Committee/Centennial Planning, 7:00 p.m. Su M Tu W Th F Sa 1 CC 2 3 "4 5 6 7 IOe 8 10 11 12 13 14 cc 15 16 F7 18 19 20 21 22JP 23 24 26 27 28 29 31 AUGUST Su M Tu W Th F Sa 1 2 3 4 cc 6 7 8 9 10 11 ICe 12 Pc 14 15 16 17 18 cc 19 20 21 22 23 24 25 PK 26JP 27 28 29 30 31 10. Preliminary Budget Discussion (Separate Cover) 11. Adjournment P:ACity Council\Council Agendas\2019 Agenda Packets\2019-07-15 City Council Agenda.docx Meeting Date: July 15, 2019 Agenda Page 3 Albertville Smog T— IMnq. eq Cky ui.. ALBERTVILLE CITY COUNCIL Monday, June 17, 2019 DRAFT MINUTES ALBERTVILLE CITY HALL 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:00 p.m. 2. ROLL CALL 7:00 PM Present: Mayor Hendrickson and Council members Cocking, Halling, Olson and Vetsch Absent: None Staff Present: City Administrator-PWD Adam Nafstad, City Attorney Mike Couri, and Fire Chief Eric Bullen Others Present: None 3. RECOGNITIONS — PRESENTATIONS — INTRODUCTIONS 4. PUBLIC FORUM There was no one present for the forum. 5. AMENDMENTS TO THE AGENDA There were no amendments to the agenda. Motioned by Olson, seconded by Cocking, to approve the Agenda as presented. Ayes: Hendrickson, Cocking, Halling, Olson and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 6. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the June 3, 2019 regular City Council meeting minutes as presented B. Authorize the Monday, June 17, 2019 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been Page 1 Agenda Page 4 provided to City Council as a separate document and is available for public view at City Hall upon request C. Authorize the purchase of 2 Blitzfire nozzles for the Fire Department Motioned by Vetsch, seconded by Hendrickson, to approve the Consent Agenda as presented. Ayes: Hendrickson, Cocking, Halling, Olson and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 7. PUBLIC HEARINGS — None 8. DEPARTMENT BUSINESS A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) D.C. Triz� Cocking reported he was in Washington D.C. last week and met with Senator Klobuchar's and Smith's office staff as well as with Representative Emmer to thank them for their assistance with and support of the I-94 project. STMA Ice Arena Board Nafstad reported the Board has been discussing water treatment options for the old sheet of ice. The first option was to utilize the new equipment purchased for the second rink. Nafstad reported the Arena Board made a motion to move forward with that option so long as the School District is made whole within two years. He reported that the district paid $26,000 for the water heater. He stated the Arena Board would need to pay for using the water heater and Cocking reported the school district offered no charge now if the two cities would commit to funding 1/3 of the cost of new water heater/reverse osmosis equipment when needed. Cocking was not in favor of that arrangement and Nafstad stated that it is also not in line with the management agreement for the arena or shared equipment which is based on a specific formula. Hendrickson asked for clarification of what treatment system was used in the past. Nafstad reported that the old sheet of ice used reverse osmosis and the new sheet uses hot water. Cocking stated that the decision was made by the district to remove from the contract the relocation of the reverse osmosis system without the Arena Board discussion or decision Nafstad stated that in terms of reimbursement, they need to decide whether the Arena Board capital reserves should be used or if the entities each pay their share. Cocking explained his concerns with the option 1 and felt the reverse osmosis system designed for both rinks would extend the life of equipment and reduce costs. Olson also felt decisions previously made, such as substituting a sand floor, also add to increased costs and he felt that these items are snowballing. Nafstad replied that the Board did discuss the last minute requests for additional funding for items. Vetsch felt there may be some difficult discussions to be had at future meetings but they need to find a way to make it work. Cocking felt that the way decisions have been made cannot continue. Couri suggested that Council stay with the formula as outlined in the management City Council Meeting Minutes Page 2 Regular Meeting of June 17, 2019 Agenda Page 5 agreement. Olson inquired how capital would be paid for in the future. Nafstad replied the old sheet of ice would be 1/3 for all entities, but the new sheet would be 100% the school district as outlined in the agreement. Cocking reported on what capital funds have been used for to date this year and part of the concern is building that capital fund back up. Couri stated that funds to the school be authorized by the Arena Board and not from each city. Nafstad stated the proposed resolution had reimbursement for two years. He suggested reaching out to the entities to have the Arena Board authorize funding the school back from capital funds. Council discussed limited balance of arena capital and expressed a willingness to contribute if desired by the other entities. Council direction is for arena board to reimburse school for water heater consistent with management agreement, which would pay the school approximately $13,000 or 50% of the cost of the heater using arena capital reserves. Olson inquired if there would be additional items related to the new arena that will be coming to the Council. B. Fire — None C. Finance — None D. City Clerk — None E. Public Works/Engineering — None F. Planning/Zoning — None G. Building —None H. Legal —None I. Administration 1). City Administrator's Update Nafstad stated that the trash enclosure doors are off again at Neighbor's Saloon & Eatery and he stated that an administrative notice will be sent again. Nafstad stated staff is working with the owners of Hana and insurance companies to get the building taken down. Nafstad reported a lot of residents are utilizing the driveway replacement program during the street improvement project. Unfortunately that is holding up some of the paving work. However, Hendrickson felt the program is a real benefit to that neighborhood to improve the properties. Nafstad stated that improvements to Westwind Park are coming along and the gazebo is looking nice. Olson felt there should be a few locations in the wetland area around the boardwalk that should be excavated to hold water. Hendrickson reported she has received some comments about spraying for mosquitos but not being a member of the Metropolitan Council that oversees the Mosquito Control Division, it is not an option for them unless Wright Council would want to spray over a large area of the county. City Council Meeting Minutes Page 3 Regular Meeting of June 17, 2019 Agenda Page 6 9. Announcements and/or Upcoming Meetings June 24 Joint Powers Water Board, 6:00 p.m. Parks Committee/Cent, 6:00 p.m. July 1 City Council, CANCELLED July 4 City Offices Close, Independence Day July 8 STMA Ice Arena Board, CANCELLED July 9 Planning Commission, 7:00 p.m. July 15 City Council, 7:00 p.m. July 17 Fire Advisory Committee, 6:00 p.m. July 22 Joint Powers Water Board, 6:00 p.m. Parks Committee/Centennial Celebration, 7:00 p.m. 10. ADJOURNMENT Motioned by Vetsch, seconded by Olson, to adjourn the meeting at 8:13 p.m. Ayes: Hendrickson, Cocking, Halling, Olson and Vetsch. Nays: None. Absent: None. MOTIONDECLARED CARRIED. Respectfully submitted, Kimberly A. Hodena, City Clerk City Council Meeting Minutes Page 4 Regular Meeting of June 17, 2019 Agenda Page 7 A\1bertville Mayor and Council Request for Action Smolt LWing. Big Ufs. July 11, 2019 SUBJECT: CONSENT - FINANCE— PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, July 15, 2019 payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: Account codes starting with 810 are STMA Arena ExpensesNendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City's policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party deten-nines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) P:ACity Council\Council Packet Information\2019\071519\2019-07-15 Finance Bills Report (RCA).docx Meeting Date: July 15, 2019 da Page 8 0�gERTVlLZF FINE f 1 , CI Fire Department Update gfSUE July 15, 2019 GENERAL ADMINISTRATION: • Calls for Service: o 2019 (Through June 30): 212 ■ Albertville: 116 54.72% ■ Otsego: 88 41.51% ■ St. Michael: 6 2.83% ■ Other: 2 0.94% • Hiring Process o One applicant going through the final step in the hiring process o Look to bring him on in August should he pass everything GENERAL BUSINESS: • Fire Department Capital Update o Both trucks should be delivered either Friday, July 12 or Monday, July 15 o Department -wide training begins Monday, July 15 o Plan is to get the new Engine 11 in-service in 4 weeks, then start training on the new Tower 11 • ISO Visit —April 2 completed o Final scoring should be back by the fall • Upcoming Meetings: o Relief Association / Business Meeting = Thursday, July 25 at 6:00 / 8:00 p.m. o Joint Fire Advisory Subcommittee Meeting = Tuesday, July 30 at 6:30 p.m. • Open Grant Requests: 0 2018 FEMA AFG: ■ $58,014 grant request for 18 portable radios and chargers o MN DNR Rural Fire Department Assistance: ■ $5,000 matching grant request for Wildland gear for new members ATTACHMENTS: • Albertville Fire Breakdown by Major Incident Types - January 1 to June 30, 2019 • Albertville Fire Incident Statistics - January 1 to June 30, 2019 Agenda Page 9 Albertville Fire Department Albertville, MN This report was generated on 7/10/2019 8:35:08 AM Li Breakdown by Major Incident Types for Date Range Zone(s): All Zones I Start Date: 01/01/2019 1 End Date: 06/30/2019 Rescue & Emergency Medic 51.4 Fires 8.02% ondition (No F 9.4 alse Alarm & False Call .55% Service Call 1.42% I Intent Call '% MAJOR INCIDENT TYPE # INCIDENTS % of TOTAL Fires 17 8.02% Rescue &Emergency Medical Service 109 51.42% Hazardous Condition (No Fire) 20 9.43% Service Call 3 1.42% Good Intent Call 47 22.17% False Alarm & False Call 16 7.55% TOTAL 212 100.00% Only REVIEWED incidents included. Summary results for a major incident type are not displayed if the count is zero. Agenda Page 10 GEMERGENCY REPORTING emergencyreporting.com Doc Id: 553 Page # 1 of 2 Detailed Breakdown by Incident Type INCIDENT TYPE # INCIDENTS % of TOTAL 100 - Fire, other 1 0.47% 111 - Building fire 5 2.36% 113 - Cooking fire, confined to container 3 1.42% 131 - Passenger vehicle fire 3 1.42% 132 - Road freight or transport vehicle fire 2 0.94% 143 - Grass fire 3 1.42% 311 - Medical assist, assist EMS crew 4 1.89% 321 - EMS call, excluding vehicle accident with injury 93 43.87% 322 - Motor vehicle accident with injuries 12 5.66% 411 - Gasoline or other flammable liquid spill 1 0.47% 412 - Gas leak (natural gas or LPG) 9 4.25% 424 - Carbon monoxide incident 7 3.30% 440 - Electrical wiring/equipment problem, other 1 0.47% 441 - Heat from short circuit (wiring), defective/worn 1 0.47% 444 - Power line down 1 0.47% 542 - Animal rescue 1 0.47% 551 - Assist police or other governmental agency 1 0.47% 571 - Cover assignment, standby, moveup 1 0.47% 611 - Dispatched & cancelled en route 40 18.87% 631 - Authorized controlled burning 2 0.94% 651 - Smoke scare, odor of smoke 5 2.36% 714 - Central station, malicious false alarm 1 0.47% 733 - Smoke detector activation due to malfunction 4 1.89% 735 - Alarm system sounded due to malfunction 4 1.89% 741 - Sprinkler activation, no fire - unintentional 1 0.47% 743 - Smoke detector activation, no fire - unintentional 1 0.47% 744 - Detector activation, no fire - unintentional 1 0.47% 745 - Alarm system activation, no fire - unintentional 2 0.94% 746 - Carbon monoxide detector activation, no CO 2 0.94% TOTAL INCIDENTS: 212 100.00% Only REVIEWED incidents included. Summary results for a major incident type are not displayed if the count is zero. Agenda Page 71 EMERGENCY �+ REPORTING emergencyreporting.com Doc Id: 553 Page # 2 of 2 Albertville Fire Department Albertville, MN This report was generated on 7/10/2019 8:32:43 AM i Incident Statistics Start Date: 01/01/2019 1 End Date: 06/30/2019 INCIDENT COUNT INCIDENT TYPE EMS FIRE TOTAL # INCIDENTS 109 103 212 TOTAL TRANSPORTS (N2 and N3) APPARATUS # of APPARATUS # of PATIENT TRANSPORTS TRANSPORTS OTAL PRE -INCIDENT VALUE _ $1,812,283.00 424 - Carbon monoxide incident 746 - Carbon monoxide detector activation, no CO TOTAL Aid Type Aid Given Aid Received CO CHECKS MUTUAL AID 0j%ERTVI(jF F�AE �FSC�E TOTAL # of PATIENT CONTACTS LOSSES $1,059,400.00 7 2 9 Total 8 7 OVERLAPPING CALLS # OVERLAPPING % OVERLAPPING 24 11.32 LIGHTS AND SIREN - AVERAGE RESPONSE TIME (Dispatch to Arrival) Station EMS FIRE Albertville Fire Department 0:08:26 0:12:08 AVERAGE FOR ALL CALLS LIGHTS AND SIREN - AVERAGE TURNOUT TIME (Dispatch to Enroute) Station EMS FIRE Albertville Fire Department 0:05:07 0:07:42 FOR ALL CALLS AGENCY Albertville Fire Department AVERAGE TIME ON SCENE (MM:SS) 64:44 Only Reviewed Incidents included. CO Checks only includes Incident Types: 424, 736 and 734. # Apparatus Transports = # of incidents where apparatus transported. # Patient Transports = # of PCR with disposition "Treated, Transported by EMS". # Patient Contacts = # of PCR contacted by apparatus. This report now returns both NEMSIS 2 & 3 data as appropriate. Agenda Page 12 EMERGENCY REPORTING emergencyreporting.com Doc Id: 1645 Page # 1 of 1 �1bertvi j le Mayor and Council Communication July 8, 2019 SUBJECT: CONSENT - FINANCE — 2ND QUARTER BUDGET TO ACTUAL REPORT — UN- AUDITED 2nd QUARTER BUDGET TO ACTUAL: Attached are the 2nd Quarter 2019 un-audited General Fund summaries of revenues and expenditures. Revenues are expected be at 50%. Expenses are expected to be at 50%. This summary shows operating revenues are at 49.50% and operating expenses are at 47%. VARIANCES: Revenue: • Fire Aid — Not received until October • Police Aid — Not received until October • Charges for Services - $8,488 payments for first responder billings • Interest allocated semi-annually Expenses: • Assessor services completed April 2019 • Capital expenses are above budget due to planned purchases using capital reserve funds. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: 2019 Budget to Actual P:ACity Council\Council Packet Information\2019\071519\2019-07-15 2nd Quarter 2019 Budget to Actual RCA.docx Meeting Date: July 15, 2019 13 2019 Actual Ytd % General Fund Department Expenditures: 2019 Budget 06/30/19 Budget 41000 General Government 30,000 $19,723 65.74% 41100 Council 40,524 $19,467 48.04% 41300 Combined Administrator/Engineer 144,672 $58,068 40.14% 41400 City Clerk 112,152 $51,497 45.92% 41440 Elections 20,000 $5 0.03% 41500 Finance 109,503 $52,145 47.62% 41550 City Assessor 36,000 $35,538 98.72% 41600 City Attorney 40,000 $10,455 26.14% 41700 City Engineer 25,000 $4,486 17.94% 41800 Economic Development 6,000 $3,591 59.85% 41910 Planning & Zoning 46,507 $33,317 71.64% 41940 City Hall 151,950 $41,056 27.02% 42000 Fire Department 491,341 $281,426 57.28% 42110 Police 761,390 $380,695 50.00% 42400 Building Inspection 229,886 $104,069 45.27% 42700 Animal Control 7,000 $2,851 40.73% 43100 Public Works - Streets 360,762 $129,251 35.83% 45000 Culture & Recreation 81,091 $47,269 58.29% 45100 Parks & Recreation 347,367 $158,724 45.69% 43160 Electric street lights 88,511 $37,186 42.01% Total Expenditures 3,129,656 1,470,820 47.00% 2019 Council Update Capital Fund 2019 Actual Ytd % Capital Reserve Fund Revenues 2019 Budget 06/30/19 Budget 31010 1 Current Ad Valorem Taxes 1 1,367,473 $683,737 50.00% 2019 Council Update Capital Fund 2019 Actual t o Capital Reserve Fund Expenditures 2019 Budget 06/30/19 Budget 300 Professional Services 1,367,473 $1,584,828 115.89% Agenda Page 14 2019 Council Update General Fund Operations 2019 Actual Ytd % General Fund Revenue: 2019 Budget 06/30/19 Budget 31010 Current Ad Valorem Taxes 2,075,403 $1,131,863 54.54% 32100 Business Licenses & Permits 27,000 $20,787 76.99% 32110 Liquor Licenses 33,000 $29,670 89.91 % 32120 3.2 Liquor Licenses 75 $0 0.00% 32150 Sign Permits 1,000 $210 21.00% 32210 Building Permits 100,000 $47,848 47.85% 32240 Animal Licenses 700 $865 123.57% 33401 LGA Revenue expected 112,015 $16,453 14.69% 33405 Police Aid 41,000 $0 0.00% 33406 Fire Aid 64,000 $0 0.00% 33422 Other State Aid Grants 11,500 $5,258 45.72% 34000 Charges for Services 5,000 $12,031 240.63% 34005 Engineering As Built Fee 3,000 $375 12.50% 34101 Leases - City Property 2,600 $720 0.00% 34103 Zoning & Subdivision Fees 2,500 $1,000 40.00% 34104 Plan Check Fee 65,000 $19,693 30.30% 34107 Title Searches 3,600 $1,400 38.89% 34113 Franchise Fee - Cable 74,000 $35,377 47.81 % 34202 Fire Protection Contract Charges 319,846 $167,342 52.32% 34780 Rental Fees 15,000 $8,775 58.50% 34950 Other Revenues 15,000 $5,197 34.65% 34110 Arena 18,417 $6,510 35.35% 34112 Electric Franchise Fee 115,000 $37,7211 32.80% 36210 1 Interest Earnings 25,000 $65 0.260/c Total Revenues 3,129,656 1,549,161 49.50% Agenda Page 15 Nlbertville Mayor and Council Communication s„a T... wk a. ft Lity ut- July 8, 2019 SUBJECT: CONSENT - FINANCE — ACCOUNTS RECEIVABLE REPORT ACCOUNTS RECEIVABLE: Total accounts receivable outstanding through July 8, 2019 is $133,014.49. The percentage of the total due based on the aging report is as follows: 0-30 days outstanding $105,241.17 79.12% 30-60 days outstanding $4,711.91 3.54% 60-90 days outstanding $3,582.80 2.69 % Over 90 days outstanding $19,478.61 14.64% PRACTICES/POLICY CONSIDERATIONS: The Mayor and Council review quarterly financial reports. FINANCIAL CONSIDERATIONS: There are no financial considerations at this time. Outstanding invoices over sixty days past due, and are attached to an Albertville property, will be assessed to the taxes payable 2020 in November. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to review and direct staff to take action regarding all financial matters. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment(s): Accounts Receivable Report P:ACity Council\Council Packet Information\2019\071519\AR Monthly Report RCA0719.doc Agenda Page 16 Meeting Date: July 15, 2019 Mayor and Council Communication - July 15, 2019 Finance - Accounts Receivable Report Page 2 of 3 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over Olvido Acosta -Dominguez $510.64 $3.96 $3.96 $3.96 $498.76 Roxanne Affeldt $919.28 $155.01 $160.01 $152.13 $452.13 Albertville Marketplace Assoc $107.38 $107.38 Albertville Meadows $915.00 $302.50 $300.00 $312.50 Albertville Phase III, LLC $107.38 $107.38 Alexis Investments $107.38 $107.38 Michael Anderson $919.28 $155.01 $160.01 $152.13 $452.13 Gary & Shelly Barthel $919.28 $155.01 $160.01 $152.13 $452.13 Jay & Alicia Benzinger $919.28 $155.01 $160.01 $152.13 $452.13 BNI Business Network $260.00 $260.00 Nancy Cagle $494.56 $3.84 $3.84 $3.84 $483.04 Capital Land Investments LLC $919.28 $155.01 $160.01 $152.13 $452.13 CJN Properties LLC $919.28 1 $155.01 1 $160.01 1 $152.13 1 $452.13 DDG Properties LLC $107.38 $107.38 Douglas A Carlson Development $292.50 $292.50 Lucas Farrand $919.28 $155.01 $160.01 $152.13 $452.13 Finest Quality Homes $919.28 $155.01 $160.01 $152.13 $452.13 FYCC $120.40 $120.40 Sherry Haarsager $744.00 $6.00 $6.00 $6.00 $726.00 Jeremy Hager $919.28 $155.01 $160.01 $152.13 $452.13 Luke Hamilton $919.28 $155.01 $160.01 $152.13 $452.13 Homes by Legacy $157.50 $1.25 $1.25 $1.25 $153.75 HP Minnesota LLC $600.00 $600.00 HSB Ventures $816.30 $361.30 $455.00 IH2 Property Illinois $305.00 $150.00 $155.00 Insure on the Spot $1,250.36 $10.09 $10.09 $10.19 $1,219.99 ISD 885 $15,000.00 $15,000.00 Stacy Janicki $200.00 $200.00 Heidi Jiang $403.34 $201.67 $1.67 $200.00 Todd Kerber $818.37 $205.01 $5.01 $3.34 $605.01 Douglas Lallak $818.37 $205.01 $5.01 $3.34 $605.01 Michael Leclair $1,250.36 $10.09 $10.09 $10.09 $1,220.09 Chuck Maeyaert $756.00 $6.00 $6.00 $6.00 $738.00 Nathan Mcghee $919.28 $155.01 $160.01 $152.13 $452.13 Nichole Miller $919.28 $155.01 $160.01 $152.13 $452.13 Kris Moen $919.28 $155.01 $160.01 $152.13 $452.13 Mold Tech, Inc $107.38 $107.38 P:ACity Council\Council Packet Information\2019\071519\AR Monthly Report RCA0719.doc Agenda Page 17 Meeting Date: July 15, 2019 Mayor and Council Communication - July 15, 2019 Finance - Accounts Receivable Report Page 3 of 3 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over Julia Nagorski $722.65 $153.38 $160.01 $152.13 $257.13 Pathlight Property Management $1,311.52 $305.76 $315.76 $300.00 $390.00 Edward Pelzer $3,063.74 $24.69 $26.35 $26.35 $2,986.35 Pleasant Creek HOA $214.75 $214.75 Razor Sharp Hockey $1,063.01 $1,063.01 Renters Warehouse $919.28 $155.01 $160.01 $152.13 $452.13 Chris & Laura Rooker $919.28 $155.01 $160.01 $152.13 $452.13 Cody & Kristi Schulte $919.28 $155.01 $160.01 $152.13 $452.13 Jeff & Angie Stillwell $768.03 $153.76 $160.01 $2.13 $452.13 STMA United Soccer Club $2,350.00 $2,350.00 Jeremy Tiedeken $818.37 $205.01 $5.01 $3.34 $605.01 Darrin Voeller $919.28 $155.01 $160.01 $152.13 $452.13 Shawn Wahlstrom $919.28 $155.01 $160.01 $152.13 $452.13 Wright County Highway Dept $79,702.44 $79,702.44 Jon & Janet Wymer $203.34 $1.67 $1.67 $200.00 Total $133,014.49 $105,241.17 $4,711.91 $3,582.80 $19,478.61 Current 0-30 days $105,241.17 79.12% 30-60 days $4,711.91 3.54% 60-90 days $3,582.80 2.69% over 90 day $19,478.61 14.64% P:ACity Council\Council Packet Information\2019\071519\AR Monthly Report RCA0719.doc Agenda Page 18 Meeting Date: July 15, 2019 �lbcrtvi j jc S-1T..UNng.ftCity Lft. Mayor and Council Request for Action July 11, 2019 SUBJECT: CONSENT -CITY CLERK— TEMPORARY OUTDOOR MUSIC PERMIT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve a Major Temporary Outdoor Music Permit for the 152 Club, Inc. for September 14, 2019 located at 5794 Main Avenue NE. BACKGROUND: The City Council revised its Temporary Outdoor Music ordinance in 2013. The revision more clearly defined the definitions of both a Major and Minor Temporary Outdoor Music Permit and the requirements that must be met for each type of permit. The applicant, Trish Stevens of 152 Club, Inc., has applied for a Major Temporary Outdoor Music Permit for September 14, 2019. A Major Temporary Outdoor Music Permit must meet the following requirements: 1. Any person, organization, and/or entity shall be limited to a maximum of two (2) major permits per year. No commercial property shall host more than three (3) major events in a calendar year. 2. The permit applicant must pay a permit fee as set by the City Council by ordinance and provide information and/or a plan(s) that demonstrates that the site event will comply with the performance standards of this code. 3. The permit applicant must demonstrate that there will be adequate sanitary facilities for the event. 4. The permit applicant must demonstrate that there will be adequate security and fencing to control access to the event at the location of the outdoor musical performance. 5. The permit applicant must have sufficient off-street parking. The music event shall not occupy required parking for the principal use of the site. 6. The major outdoor musical performance must not interfere with other commercial and governmental activities or with the quiet enjoyment of residential property. 7. The stage, performers, speakers and amplifiers are located three hundred feet (300') from any residence located in a residential zoning district. 8. The stage, speakers, and amplifiers are arranged in a design and manner that does not directly broadcast music at or toward a residence within three hundred feet (300') of the stage. 9. Major outdoor music events shall be allowed between May 15t1i and October 1511' and the live outdoor musical performance shall only occur on the dates and during the hours designated by the City Council. 10. Major outdoor music events shall not perform beyond 12:00 midnight. 11. The volume of the outdoor musical performance must be reasonable. The permit holder shall comply with all requests of the Sheriff's Department to reduce volumes to mitigate nuisance complaints. P:ACity Council\Council Packet Information\2019\071519\2019-07-15 Outdoor Music Permit for 152 Club - Benefit.docx Meeting Date: July 15, 2019 19 Mayor and Council Request for Action — July 15, 2019 152 Club, Inc. Outdoor Music Event Page 2 of 2 12. Failure to abide by these standards or the receipt of nuisance complaints may be grounds for denial of future major outdoor music permits for the property. The applicant has previously held both Major and Minor Temporary Outdoor Music Permits and is familiar with the requirements that must be met. KEY ISSUES: • The applicant has submitted a site plan showing the location of speakers, fencing and security, and has indicated adequate sanitary facilities as well as parking. • The event is a special event for the establishment and music will be played from 8:00 p.m. — 11:59 p.m. • The applicant has indicated they will abide by the noise requirements. • The applicant has submitted the fee. POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority to approve or deny any Temporary Outdoor Music Permit. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the music permit. Responsible Person/Department: Kimberly A. Hodena, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Temporary Outdoor Music Application P:ACity Council\Council Packet Information\2019\071519\2019-07-15 Outdoor Music Permit for 152 Club - Benefit.docx Meeting Date: July 15, 2019 Agenda Page 20 5959 Main Avenue NE A�Ibcrtvflle P.O. Box 9 Albertville, MN 55301 Smell Uving. Big , UFO. APPLICATION FOR TEMPORARY OUTDOOR MUSIC Temporary Outdoor Music Application must be submitted a minimum of 14 business days prior to a Council meeting. Office Use Only V 'd'ash.ailed: 1. Applicant Name and/or Contact � " i 1. i Email Address: ■ 3. Date(s) th;,Outdoor Musical Performance will take place: 4. Hours of the Outdoor Musical Performance: CHECKLIST OF ITEMS NEEDED WHEN SUBMITTING AN APPLICATION TO THE PLANNING DEPARTMENT FOR A TEMPORARY OUTDOOR MUSIC PERMIT Staff will review Section 5-5-3 of the City Code in determining whether to grant the request for temporary outdoor musical performance. Applicants should review this section of the Ordinance to understand conditions the City places on outdoor musical performances. In addition, permit approval will be based upon the applicants providing the following information for review by City staff Agenda Page 21 The applicant shall demonstrate that the event site can satisfy the requirements the City has set forth with regards to holding an outdoor music event. They shall submit a written narrative and/or site plan addressing the following: t v v Anticipated number of people at the outdoor music event. X The provision of sanitary facilities for the music event. The provision of security and/or fencing to control access to the music event. The location of off-street parking for the music event. The location and orientation of the proposed stage, speakers, amplifiers, and performers. In addition, applicants shall indicate the distance between these entities and any residence/building in a residential zoning district, which must be a minimum of 300 feet. 1 �-f��' D -� l.� A calendar of days in the week wh,En outdoor music events may occur. A description of the type of musical performance '.e. instrumental, coustic, etc.) Applicant's Signature 7-l0 0 Date Agenda Page 22 5794 Main Avenue Northeast, Albertville, MN - Google Maps Page I ot'l *N Ow dolift ON we vlsft on k"Ool1 To owC I Op VLC) (C&PeV!CIJ Y? FVI Lt Z Cl +C. t1cl L11 �<L 41 I L I ,L, jay ��i 'i/ �f2'� ol-�' 'ILTI(LI L L -k +ry GIf-L https: //maps. goog)e. com/maps?hl=en&q=5794'I Main+Avenue+N'orIlheast,:VA lberivil le,+M... 9/1112012 Agenda Page 16 Agenda Page 23 (4.,Beacon Wright County, MN 10114100101 1 199 4441 S ` 1 1141001020 ,e , .., f 4L, 101141001030 1 rrs c r. "+ate W or z tf 10101800 Q ' 115 ft I Parcel ID 101141001020 Alternate ID n/a Sec/Twp/Rng 01-120-024 Class 233-COMM LAND& BLDGS Property Address 5794 MAIN AVE NE Acreage n/a ALBERTVILLE District 0102 C ITY OF ALBERTVILLE 885 Brief Tax Description Sect-01Twp-120 Range-024ALBERTVILLE RAILWAY EXCHANGE Lot-002 Block-001 (Note: Not to be used on legal documents) Date created:7/10/2019 Last Data Uploaded: 7/10/2019 3:33:56 AM Developed by" Schneider r.( C`c C4 f A l Overview Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate State Hwy US Hwy Cityfrownship Limits ❑c ❑t r- 1 Parcels Owner Address n/a Agenda Page 24 9 Main Aire NE Albertville MN 55301 7634973384 Transaction 3785.9168 07/ 10/2019 11 -* 4 7am Tracey POS1 i -HP Temp Music Permit 152 Club Incl, Temp Music Permit 152 Club Receipt Total 50 . ()(.1 Sept. 14, 2019 :5 . 0 Agenda Page - 00 A,lbertville Small Town UWng. Big City Lft. Mayor and Council Request for Action July 11, 2019 SUBJECT: CONSENT -CITY CLERK— TEMPORARY OUTDOOR MUSIC PERMIT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve a Major Temporary Outdoor Music Permit for the 152 Club, Inc. for September 28, 2019 located at 5794 Main Avenue NE. BACKGROUND: The City Council revised its Temporary Outdoor Music ordinance in 2013. The revision more clearly defined the definitions of both a Major and Minor Temporary Outdoor Music Permit and the requirements that must be met for each type of permit. This music pen -nit if for the 152 Club's annual Oktoberfest. The applicant, Trish Stevens of 152 Club, Inc., has applied for a Major Temporary Outdoor Music Permit for September 28, 2019. A Major Temporary Outdoor Music Permit must meet the following requirements: 1. Any person, organization, and/or entity shall be limited to a maximum of two (2) major permits per year. No commercial property shall host more than three (3) major events in a calendar year. 2. The permit applicant must pay a permit fee as set by the City Council by ordinance and provide information and/or a plan(s) that demonstrates that the site event will comply with the performance standards of this code. 3. The permit applicant must demonstrate that there will be adequate sanitary facilities for the event. 4. The permit applicant must demonstrate that there will be adequate security and fencing to control access to the event at the location of the outdoor musical performance. 5. The permit applicant must have sufficient off-street parking. The music event shall not occupy required parking for the principal use of the site. 6. The major outdoor musical performance must not interfere with other commercial and governmental activities or with the quiet enjoyment of residential property. 7. The stage, performers, speakers and amplifiers are located three hundred feet (300') from any residence located in a residential zoning district. 8. The stage, speakers, and amplifiers are arranged in a design and manner that does not directly broadcast music at or toward a residence within three hundred feet (300') of the stage. 9. Major outdoor music events shall be allowed between May 151h and October 151h and the live outdoor musical performance shall only occur on the dates and during the hours designated by the City Council. 10. Major outdoor music events shall not perform beyond 12:00 midnight. P:ACity Council\Council Packet Information\2019\071519\2019-07-15 Outdoor Music Permit for 152 Club - Oktobei%st.docx Meeting Date: July 15, 2019 26 Mayor and Council Request for Action — July 15, 2019 152 Club, Inc. Outdoor Music Event Page 2 of 2 11. The volume of the outdoor musical performance must be reasonable. The permit holder shall comply with all requests of the Sheriff's Department to reduce volumes to mitigate nuisance complaints. 12. Failure to abide by these standards or the receipt of nuisance complaints may be grounds for denial of future major outdoor music permits for the property. The applicant has previously held both Major and Minor Temporary Outdoor Music Permits and is familiar with the requirements that must be met. KEY ISSUES: • The applicant has submitted a site plan showing the location of speakers, fencing and security, and has indicated adequate sanitary facilities as well as parking. • The event is a special event for the establishment and music will be played from 8:00 p.m. — 11:59 p.m. • The applicant has indicated they will abide by the noise requirements. • The applicant has submitted the fee. POLICY/PRACTICES CONSIDERATIONS: The Mayor and City Council have the authority to approve or deny any Temporary Outdoor Music Permit. FINANCIAL CONSIDERATIONS: There is minimal financial revenue collected from the applicant for the music permit. Responsible Person/Department: Kimberly A. Hodena, City Clerk Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Temporary Outdoor Music Application P:ACity Council\Council Packet Information\2019\071519\2019-07-15 Outdoor Music Permit for 152 Club - Oktoberfest.d0ex Meeting Date: July 15, 2019 Agenda Page 27 5959 Main Avenue NE lbcrtvi C P.O. Box 9 Albertville, MN 55301 Smd Town UWng. Big City Ufa. APPLICATION FOR TEMPORARY OUTDOOR MUSIC Temporary Outdoor Music Application must be submitted a minimum of 14 business days prior to a Council meeting. Office Use Only Dat Rec'd: �l/011 a e Cash: 70 ZO ertr t mailed: 1. Applicant Name and Contact Person: Address: Day -time Phone No. Amount Pd: Mtg Date: -7//S-119 Sheriff notified: Address: 2. Address of where the Outdoor Musical Performance will take 3. Date(sAthe Outdoor Music I Performance will take place: 4. Hours }o�f'the Outdo/or Musical Performance: `7 f)LAA I / 11111 CHECKLIST OF ITEMS NEEDED WHEN SUBMITTING AN APPLICATION TO THE PLANNING DEPARTMENT FOR A TEMPORARY OUTDOOR MUSIC PERMIT Staff will review Section 5-5-3 of the City Code in determining whether to grant the request for temporary outdoor musical performance. Applicants should review this section of the Ordinance to understand conditions the City places on outdoor musical performances. In addition, permit approval will be based upon the applicants providing the following information for review by City staff Agenda Page 28 N The applicant shall demonstrate that the event site can satisfy the requirements the City has set forth with regards to holding an outdoor music event. They shall submit a written narrative and/or site plan addressing the following: 2oDAnticipated number of people at the outdoor music event. Y^ The provision of sanitary facilities for the music event. Y The provision of security and/or fencing to control access to the music event. The location of off-street parking for the music event. The location and orientation of the proposed stage, speakers, amplifiers, and performers. In addition, applicants shall indicate the distance between these entities and any residence/building in a residential zoning district, which must be a minimum of 300 feet. A calendat of days in the wee when outdoor music events may occur. A description of the type of musical performance (i.e. 4;rumeDntal,ustic, etc.) 's Signature -�-10-0 Date Agenda Page 29 City of Albertville, Minnesota $5,720,000.00 G.O. Sanitary Sewer Revenue Bonds, Series 2019A (Preliminary State Enhanced Rates as of 7/2/19) Sources & Uses Dated 09/24/2019 1 Delivered 09/24/2019 Sources Of Funds Par Amount of Bonds $5,720,000.00 State Contribution 2,000,000.00 Total Sources $7,720,000.00 Uses Of Funds Deposit to Project Construction Fund 7,615,000.00 Total Underwriter's Discount (1.000%) 57,200.00 Costs Of Issuance 46,500.00 Rounding Amount 1,300.00 Total Uses $7,720,000.00 GO Rev 19A 20yr I SINGLE PURPOSE 1 7/ 3/2019 1 8:45 AM Northland Securities, Inc. Public Finance Page 1 City of Albertville, Minnesota $5,720,000.00 G.O. Sanitary Sewer Revenue Bonds, Series 2019A (Preliminary State Enhanced Rates as of 7/2/19) Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 09/24/2019 - - - - - 02/01/2020 315,000.00 1.400% 43,144.72 358,144.72 358,144.72 08/01/2020 - - 58,945.00 58,945.00 - 02/01/2021 240,000.00 1.450 % 58,945.00 298,945.00 357,890.00 08/01/2021 - - 57,205.00 57,205.00 - 02/01/2022 245,000.00 1.450% 57,205.00 302,205.00 359,410.00 08/01/2022 - - 55,428.75 55,428.75 - 02/01/2023 245,000.00 1.500% 55,428.75 300,428.75 355,857.50 08/01/2023 - - 53,591.25 53,591 25 - 02/01/2024 250,000.00 1.550% 53,591.25 303,59125 357,182.50 08/01/2024 - - 51,653.75 51,653.75 - 02/01/2025 255,000.00 1.650% 51,653.75 306,653.75 358,307.50 08/01/2025 - - 49,550.00 49,550.00 - 02/01/2026 260,000.00 1.750% 49,550.00 309,550.00 359,100.00 08/01/2026 - - 47,275.00 47,275.00 - 02/01/2027 265,000.00 1.850% 47,275.00 312,275.00 359,550.00 08/01/2027 - - 44,823.75 44,823.75 - 02/01/2028 265,000.00 1.950% 44,923.75 309,823.75 354,647.50 08/01/2028 - - 42,240.00 42,240.00 - 02/01/2029 275,000.00 2.050% 42,240.00 317,240.00 359,480.00 08/01/2029 - - 39,421.25 39,421.25 - 02/01/2030 280,000.00 2.150% 39,42125 319,421.25 358,842.50 08/01/2030 - - 36,411 25 36,411.25 - 02/01/2031 285,000.00 2.250% 36,41125 321,411.25 357,822.50 08/01/2031 - - 33,205.00 33,205.00 - 02/01/2032 290,000.00 2.350% 33,205.00 323,205.00 356,410.00 08/01/2032 - - 29,797.50 29,797.50 - 02/01/2033 295,000.00 2.450% 29,797.50 324,797.50 354,595.00 08/01/2033 - - 26,183.75 26,183.75 - 02/01/2034 305,000m 2.550% 26,183.75 331,183.75 357,367.50 08/01/2034 - - 22,295.00 22,295.00 - 02/01/2035 315,000.00 2.600% 22,295.00 337,295.00 359,590.00 08/01/2035 - - 18,200.00 18,200.00 - 02/01/2036 320,000.00 2.650% 18,200.00 338,200.00 356,400.00 08/01/2036 - - 13,960.00 13,960.00 - 02/01/2037 330,000.00 2.700% 13,960.00 343,960.00 357,920.00 08/01/2037 - - 9,505.00 9,505.00 - 02/01/2038 340,000.00 2.750% 9,505.00 349,505.00 359,010.00 08/01/2038 - - 4,830.00 4,830.00 - 02/01/2039 345,000.00 2.800°% 4,830.00 349,830.00 354,660.00 Total $5,720,000.00 - $1,432,187.22 $7,152,187.22 - Date And Term Structure Dated 9/24/2019 Delivery Date 9/24/2019 First available call date 2/01 /2027 Call Price 100.000% Yield Statistics Bond Year Dollars $59,417.89 Average Life 10.388 Years Average Coupon 2.4103637 % Net Interest Cost (NIC) 2.50663 10% True Interest Cost (TIC) 2.50402861/. All Inclusive Cost (AIC) 2.5972823 % IRS Form 8038 Net Interest Cost (NIC) 2.5066310 % Weighted Avenge Maturity 10.388 Years Bond Yield for Arbitrage Purposes 2.3908445% GO Rev 19A 20yr I SINGLE PURPOSE 17/ 3/2019 1 8:45 AM Northland Securities, Inc. Public Finance Page 2 A�C��MQ ■ -to- Y ■ City of Albertville, Minnesota $5,720,000.00 G.O. Sanitary Sewer Revenue Bonds, Series 2019A (Preliminary State Enhanced Rates as of 7/2/19) 105% Levy Less: Equals: Utility Revenue from Sewer Availablility Charges Levy Collection Date Total P+I 105%, Levy (SAC)- City Net Levy Year Year 02/01/2020 358,144.72 376,051.96 376,051.96 - - - 02/01/2021 357,990.00 375,784.50 150,00090 225,784.50 2019 2020 02/01/2022 359,410.00 377,380.50 150,000.00 227,380.50 2020 2021 02/01/2023 355,857.50 373,650.39 150,000.00 223,650.38 2021 2022 02/01/2024 357,182.50 375,041.63 150,000.00 225,041.63 2022 2023 02/01/2025 358,307.50 376,222.88 150,000.00 226,222.88 2023 2024 02/01/2026 359,100.00 377,055.00 150,000.00 227,055.00 2024 2025 02/01/2027 359,550.00 377.527.50 150,000.00 227,527.50 2025 2026 02/01/2028 354,647.50 372,379.88 150,000.00 222,379.88 2026 2027 02/01/2029 359,480.00 377.454.00 150,000.00 227,454.00 2027 2028 02/01/2030 358,842.50 376,784.63 150,000.00 226,784.63 2028 2029 02/01/2031 357,822.50 375,713.63 150,000.00 225,713.63 2029 2030 02/01/2032 356,410.00 374,230.50 150,000.00 224,230.50 2030 2031 02/01/2033 354,595.00 372,324.75 150,000.00 222,324.75 2031 2032 02/01/2034 357,367.50 375,235.88 150,000.00 225,235.88 2032 2033 02/01/2035 359,590.00 377,569.50 150,000.00 227,569.50 2033 2034 02/01/2036 356,400.00 374,220.00 150,000.00 224,220.00 2034 2035 02/01/2037 357,920.00 375.816.00 150,000.00 225,816.00 2035 2036 02/01/2038 359,010.00 376,960.50 150,000.00 226,960.50 2036 2037 02/01/2039 354,660.00 372,393.00 150,000.00 222,393.00 2037 2038 Total $7,152,187.22 $7,509,796.58 $3,226,051.96 $4,283,744.63 The City anticipates using revenue from Sewer Availability Charges (SAC) and revenues from the Sewer Utility Fund to reduce the overall levy. The City may determine to levy a greater amount or lesser amount based on annual revenue from SAC. GO Rc, 19A 20y, I SINGLE PURPOSE. 17/ 3/2019 19:45 AM Northland Securities, Inc. Public Finance Page 3 Agenda Page 32 Finance Plan City of Albertville, Minnesota $5,7201000 General Obligation Sanitary Sewer Revenue Bonds, Series 2019A July 15, 2019 NORTHLAND ��r� SECURITIES 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC I Registered with SEC and MSRS Executive Summary Issue Overview Purpose................................................................................................................................................................2 Authority............................................................................................................................................................. 2 Structure.............................................................................................................................................................. 2 Security and Source of Repayment........................................................................................................ 2 PlanRationale...................................................................................................................................................2 IssuingProcess................................................................................................................................................. 3 Attachment 1- Preliminary Debt Service Schedules....................................................................................4 Attachment 2 - Related Considerations BankQualification..................................................................................................................................6 ArbitrageCompliance...........................................................................................................................6 ContinuingDisclosure..........................................................................................................................6 Premiums.................................................................................................................................................... 7 Rating............................................................................................................................................................ 7 Attachment 3 - Calendar of Events......................................................................................................................8 Attachment4 - Risk Factors.....................................................................................................................................9 Northland Securities, Inc. Agenda Page 34 Page 2 Executive Summary The following is a summary of the recommended terms for the issuance of $5,720,000 General Obligation Sanitary Sewer Revenue Bonds, Series 2019A (the "Bonds' or "2019A Bonds"). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 2 - Related Considerations. Purpose Proceeds from the Bonds will be used to fund the rehabilitation of a wastewater treatment plant. Security The Bonds will be a General Obligation of the City. The City will pledge ad valorem taxes and net revenues of the City's sewer utility for payment of the Bonds. Repayment Term The Bonds will mature annually each February 1 in the years 2020 - 2039. Interest on the Bonds will be payable on February 1, 2020 and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate Average coupon: 2.41 % True interest cost (TIC): 2.50% Prepayment Option Bonds maturing on and after February 1, 2028 will be subject to redemption on February 1, 2027 and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Moody's Investors Service (Moody's). The City's general obligation debt is currently rated "Aa3" by Moody's. The Bonds will also receive the State Credit Enhancement Program rating of "Aa2" through the Minnesota Public Facilities Authority (PFA). Tax Status The Bonds will be tax-exempt, bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 4. Type of Bond Sale Public Sale - Competitive Bids Proposals Received Monday, August 19, 2019 @ 10:30 A.M. Council Consideration Monday, August 19, 2019 @ 7:00 P.M. Northland Securities, Inc. Agenda Page 35 Page 1 Issue Overview Purpose Proceeds from the Bonds will be used to fund the rehabilitation of a wastewater treatment plant. The Bonds have been sized based on the actual construction bids awarded on May 20, 2019 for the wastewater treatment plant project. The City also expects to receive a $2,000,000 one-time grant by the Minnesota Public Facilities Authority (the "State Contribution') to finance a portion of the treatment plant project. The table below contains the sources and uses of funds and preliminary interest rates for the bond issue. Sources Of Funds Par Amount of Bonds $5,720,000.00 State Contribution 2,000,000.00 Total Sources $7,720,000.00 Uses Of Funds Deposit to Project Construction Fund 7,615,000.00 Total Underwriter's Discount (1.000%) 57,200.00 Costs of Issuance 46,500.00 Rounding Amount 1,300.00 Total Uses 72 Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapters 475, 444, and 115.46. Structure The Bonds have been structured to result in relatively level annual debt service payments over the 20-year life of the Bonds. The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 1. Security and Source of Repayment The Bonds will be general obligations of the City. The Bonds will also be secured by the State of Minnesota Credit Enhancement Program, which guarantees the payment of debt service if the City fails to make a payment. The City will adopt a resolution entering into the Program and submit an application. The application will include a higher estimated par amount than is currently in the finance plan. This cushion will allow the City to not have to submit a new application, in the event that additional funds are needed for the Project. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: Utility Revenues and Property Taxes. As shown in Attachment 1, the City plans to use net revenues of the City's sewer utility, available from the City's Sewer Availability Charges (SAC), to pay debt service on the Bonds, that when combined with the property tax levies will produce the statutory requirement of 105% of debt service. The initial projections show fiscal year 2020 debt service will be paid 100% from the City's sewer utility (SAC) revenues. Fiscal years 2021 through 2039 will be paid from a combination of the City's sewer utility revenues (SAC) and property tax levies. The City projects that $150,000 of net utility revenues (SAC) will be available annually to pay a portion of the debt service between years 2021 through 2039. The levy may be adjusted annually based on utility Northland Securities, Inc. Agenda Page 36 Page 2 revenues (SAC) collections and additional monies in the debt service fund. The initial levy is projected to be made in 2019 for taxes payable in 2020. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland's knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Sanitary Sewer Revenue Bonds provides the best means of achieving the City's objectives and cost effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids to purchase the Bonds on Monday, August 19, 2019 at 10:30 AM. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 3. Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Kennedy & Graven, Chartered, Minneapolis, Minnesota Paying Agent: Northland Trust Services, Inc., Minneapolis, Minnesota Northland Securities, Inc. Agenda Page 37 Page 3 Attachment 1- Preliminary Debt Service Schedules Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 09/24/2019 - - - - - 02/01/2020 315,000.00 1.400% 43,144.72 358,144.72 358,144.72 08/01/2020 - - 58,945.00 58,945.00 - 02/01/2021 240,000.00 1.450%n 58,945.00 298,945.00 357,890.00 08/01/2021 - - 57,205.00 57,205.00 - 02/01/2022 245,000.00 1.450% 57,205.00 302,205.00 359,410.00 08/01 /2022 - - 55,428.75 55,428.75 - 02/01/2023 245,000.00 1.500% 55,428.75 300,428.75 355,857.50 08/01/2023 - - 53,591.25 53,591.25 - 02/01/2024 250,000.00 1.550% 53,591.25 303,591,25 357,182.50 08/01/2024 - - 51,65.3.75 51,653.75 - 02/01/2025 255,000.00 1.650% 51,653.75 306,653.75 358,307.50 08/01/2025 - - 49,550.00 49,550.00 - 02/01/2026 260,000.00 1.750% 49,550.00 309,550.00 359,100.00 08/01/2026 - - 47,275.00 47,275.00 - 02/01/2027 265,000.00 1.850% 47,275.00 312,275.00 359,550.00 08/01/2027 - - 44,823.75 44,823.75 - 02/01/2028 265,000.00 1.950% 44,823.75 309,823.75 354,647.50 08/01/2028 - - 42,240.00 42,240.00 - 02/01 /2029 275,000.00 2.050% 42,240.00 317,240.00 359,480.00 08/01/2029 - - 39,421.25 39,421.25 - 02/01/2030 280,000.00 2.150% 39,421.25 319,421.25 358,842.50 08/01/2030 - - 36,411.25 36,411.25 - 02/01/2031 285,000.00 2.250% 36,411.25 321,411.25 357,822.50 08/01/2031 - - 33,205.00 33,205.00 - 02/01/2032 290,000.00 2.350% 33,205.00 323,205.00 356,410.00 08/01/2032 - - 29,797.50 29,797.50 - 02/01 /2033 295,000.00 2.450% 29,797.50 324,797.50 354,595.00 08/01/2033 - - 26,183.75 26,183.75 - 02/01/2034 305,000.00 2.550% 26,183.75 331,183.75 357,367.50 08/01 /2034 - - 22,295.00 22,295.00 - 02/01/2035 315,000.00 2.600% 22,295.00 337,295.00 359,590.00 08/01/2035 - - 18,200.00 18,200.00 - 02/01/2036 320,000.00 2.650% 18,200.00 338,200.00 356,400.00 08/01/2036 - - 13,960.00 13,960.00 - 02/01/2037 330,000.00 2.700% 13,960.00 343,960.00 357,920.00 08/01/2037 - - 9,505.00 9,505.00 - 02/01/2038 340,000.00 2.750% 9,505.00 349,505.00 359,010.00 08/01/2038 - - 4,830.00 4,830.00 - 02/01/2039 345,000.00 2.800% 4,830.00 349,830.00 354,660.00 Total $5,720,000.00 - $1,432,187.22 $7,152,187.22 - Date And Term Structure Dated 9/24/2019 llellyery L)ate First available call date Call Price Yield S tatistics 9/24/2019 2/01 /2027 100.000% Bond Year Dollars $59,417.89 Average Life 10.388 Years Average Coupon 2.4103637% Net Interest Cost (NIC) 2.5066310% True Interest Cost (TIC) 2.5040286% All Inclusive Cost (AIC) 2.5972823% Northland Securities, Inc. Agenda Page 38 Page 4 105% Levy Less: Equals: Utility Revenue from Sewer Avail ablility Charges Lely Collection Date TotalP+l 105%Levy (SAC)* City Net Levy Year Year 02/01/2020 358,144.72 376,051.96 376,051.96 - - - 02/01/2021 357,890.00 375,784.50 150,000.00 225,784.50 2019 2020 02/01/2022 359,410.00 377,380.50 150,000.00 227,380.50 2020 2021 02/01/2023 355,857.50 373,650.38 150,000.00 223,650.38 2021 2022 02/01/2024 357,182.50 375,041.63 150,000.00 225,041.63 2022 2023 02/01/2025 358,307.50 376,222.88 150,000.00 226,222.88 2023 2024 02/01/2026 359,100.00 377,055.00 150,000.00 227,055.00 2024 2025 02/01/2027 359,550.00 377,527.50 150,000.00 227,527.50 2025 2026 02/01/2028 354,647.50 372,379.88 150,000.00 222,379.88 2026 2027 02/01/2029 359,480.00 377,454.00 150,000.00 227,454.00 2027 2028 02/01/2030 358,842.50 376,794.63 150,000.00 226,784.63 2029 2029 02/01/2031 357,822.50 375,713.63 150,000.00 225,713.63 2029 2030 02/01/2032 356,410.00 374,230.50 150,000.00 224,230.50 2030 2031 02/01/2033 354,595.00 372,324.75 150,000.00 222,324.75 2031 2032 02/01/2034 357,367.50 375,235.88 150,000.00 225,235.88 2032 2033 02/01/2035 359,590.00 377,569.50 150,000.00 227,569.50 2033 2034 02/01/2036 356,400.00 374,220.00 150,000.00 224,220.00 2034 2035 02/01/2037 357,920.00 375,816.00 150,000.00 225,816.00 2035 2036 02/01/2038 359,010.00 376,960.50 150,000.00 226,96M0 2036 2037 02/01/2039 354,660.00 372,393.00 150,000.00 222,393.00 2037 2038 Total $7,152,187.22 $7,509,796.58 $3,226,051.96 $4,283,744.63 * The City anticipates using revenue from Sewer Availability Charges (SAC) and revenues from the Sewer Utility Fund to reduce the overall levy. The City may determine to levy a greater amount or lesser amount based on annual revenue from SAC. Northland Securities, Inc. Agenda Page 39 Page 5 Attachment 2 - Related Considerations Bank Qualification We understand the City (in combination with any subordinate taxing jurisdictions or debt issued in the City's name by 501(c)3 corporations) anticipates issuing $10,000,000 or less in tax-exempt debt during this calendar year. Therefore the Bonds will be designated as "bank qualified" obligations pursuant to Federal Tax Law. Arbitrage Compliance The Bonds are expected to qualify for the "18-month spending" exemption related to arbitrage rebate. Other aspects of arbitrage regulations will apply to the investment of bond proceeds and the debt service fund. Project/ Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the "18-month spending" exemption. Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter's purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the "Undertaking") is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake "full" continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain "material events." Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of "financial obligations" (such as PFA loans or bank placements) must be reported within ten business days of occurrence. The report contains annual financial information and operating data that "mirrors" material information presented in the Official Statement. The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement. Northland currently serves as dissemination agent for the City, assisting with the annual reporting. The information for the Bonds will be incorporated into our reporting. Northland Securities, Inc. Agenda Page 40 Page 6 PrPmiiimc In the current market environment, it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects the bidder's view on future market conditions, tax considerations for investors and other factors. Ultimately, the true interest cost ("TIC") calculation will determine the lowest bid, regardless of premium. A premium bid produces additional funds that can be used in several ways: • The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff on the sale day to determine use of premium (if any). Rating A rating will be requested from Moody's Investors Service (Moody's). The City's general obligation debt is currently rated "AaY by Moody's. In addition, the City will enter into the Minnesota PFA's State Credit Enhancement Program, which is currently rated "Aa2" for the Bonds. The State Credit Enhancement Program guarantees the payment of debt service if the City fails to make a payment. The rating process will include a conference call with the rating analyst. Northland will assist City staff in preparing for and conducting the rating call. Northland Securities, Inc. Agenda Page 41 Page 7 Attachment 3 - Calendar of Events Wed Thu Fri Sat Sun 3 4 5 6 77879 10 11 12 13 141 15 161 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Sun Mon September Tue Wed 2019 Thu Fri 11 Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 181 191 201 211 221 231 24 25 261 271 281 291 30 31 Sun I Mon October2019 Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Action ResponsibleDate May 2011, Award Construction Bids City Council Action July 81h Set Sale Resolution for 2019A Bonds Sent to City for Northland, Bond Counsel Council Packets Finance Plan for 2019A Bonds Sent to the City July 151h City Council approves Set Sale Resolution for 2019A City Council Action, Bonds Northland, Bond Counsel July 161h Preliminary Official Statement Sent to City for Sign Northland, City Off and to Rating Agency (Moody's) Week of July 29th Rating Conference Call Northland, City, Rating Agency August 511, Rating Received Rating Agency, City, Northland August 1911, Bond Sale -10:30 a.m. City Council Action, Northland, Bond Counsel Authorizing Resolution Adopted - 7:00 p.m. September 241h Closing on the Bonds (Proceeds available) Northland, City Staff, Bond Counsel Northland Securities, Inc. Agenda Page 42 Page 8 Attachment 4 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Utility Revenues: The City pledges the net revenues of the water, sewer, and storm water utilities to the payment of principal and interest on the Bonds. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax - exemption. Northland Securities, Inc. Agenda Page 43 Page 9 MUNICIPAL ADVISORY SERVICE AGREEMENT BY AND BETWEEN THE CITY OF ALBERTVILLE, MINNESOTA AND NORTHLAND SECURITIES, INC. This Agreement made and entered into by and between the City of Albertville, Minnesota (hereinafter "City") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSF). WITNESSETH WHEREAS, the City desires to have NSI provide it with advice on the structure, terms, timing and other matters related to the issuance of the General Obligation Sanitary Sewer Revenue Bonds, Series 2019A (the "Debt") serving in the role of municipal (financial) advisor, and WHEREAS, NSI is a registered municipal advisor with both the Securities and Exchange Commission ("SEC') and the Municipal Securities Rulemaking Board ("MSRB") (registration # 866-00082-00), and WHEREAS, NSI will act as municipal advisor in accordance with the duties and responsibilities of Rule G-42 of the MSRB, and WHEREAS, the MSRB provides a municipal advisory client brochure on its website (www.msrb.org) that describes the protections that may be provided by the MSRB rules, including professional competency, fair dealing, duty of loyalty, remedies for disputes and how to file a complaint with an appropriate regulatory authority, and WHEREAS, the City and NSI are entering into this Agreement to define the municipal advisory relationship at the earliest opportunity related to the inception of the municipal advisory relationship for the Debt, and WHEREAS, NSI desires to furnish services to the City as hereinafter described, NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NSI NSI shall provide the City with services necessary to analyze, structure, offer for sale and close the Debt. The services will be tailored to meet the needs of this engagement and may include: Planning and Development 1. Assist City officials to define the scope and the objectives for the Debt. 2. Investigate and consider reasonably feasible financing alternatives. 3. Assist the City in understanding the material risks, potential benefits, structure and other characteristics of the recommended plan for the Debt, including issue structure, estimated debt service payments, projected revenues, method of issuance, bond rating, sale timing, and call provisions. Agenda Page 44 Municipal Advisory Service Agreement 4. Prepare a schedule of events related to the issuance process. 5, Coordinate with bond counsel any actions needed to authorize the issuance of the Debt. 6. Attend meetings of the City Council and other project and bond issue related meetings as needed and as requested. Bond Sale 1. Assist the City with the preparation, review and approval of the preliminary official statement (POS). 2. Assist the City and bond counsel with preparing and publishing the Official Notice of Sale if required by law. 3. Prepare and submit application for bond rating(s) and assist the City with furnishing the rating agency(s) with any additional information required to conduct the rating review. Assist the City with preparing and conducting the rating call or other presentation. 4. Assist the City in receiving the bids, compute the accuracy of the bids received, and recommend to the City the most favorable bid for award, 5. Coordinate with bond counsel the preparation of required contracts and resolutions. Post -Sale Support 1. Assist the City with the preparation of final official statement, distribution to the underwriter and posting on EMMA. 2. Coordinate the bond issue closing, including making all arrangements for bond printing, registration, and delivery. 3. Furnish to the City a complete transcript of the transaction, if not provided by bond counsel. There are no specific limitations on the scope of this agreement. COWENSATION For providing these services with respect to the Debt, NSI shall be paid a lump sum of $26,250. The fee due to NSI shall be payable by the City upon the closing of the Bonds. NSI agrees to pay the following expenses from its fee: Out-of-pocket expenses such as travel, long distance phone, and copy costs. Production and distribution of material to rating agencies and/or bond insurance companies. Preparation of the bond transcript. The City agrees to pay for all other expenses related to the processing of the bond issue(s) including, but not limited to, the following: • Engineering and/ or architectural fees. • Publication of legal notices. • Bond counsel and local attorney fees. • Fees for various debt certificates. • The cost of printing Official Statements, if any. • City staff expenses. • Airfare and lodging expenses of one NSI official and City officials when and if traveling for rating agency presentations. • Rating agency fees, if any. • Bond insurance fees, if any. • Accounting and other related fees. 2 Agenda Page 45 Municipal Advisory Service Agreement It is expressly understood that there is no obligation on the part of the City under the terms of this Agreement to issue the Debt. If the Debt is not issued, NSI agrees to pay its own expenses and receive no fee for any municipal advisory services it has rendered pursuant to this Agreement. CONFLICTS OF INTEREST NSI is not aware of any material conflicts of interest that could reasonably be anticipated to impair NSI's ability to provide advice to or on behalf of the City in accordance with the standards of conduct for municipal advisors. The compensation for services provided in this Agreement is customary in the municipal securities market, but may pose a conflict of interest. Since the fee is payable at closing and only if the Debt is issued, NSI may have an incentive to encourage issuance. Compensation linked to the size of the transaction may provide incentive to increase the amount of the Debt. Compensation considerations will not impair NSI's ability to provide unbiased and competent advice or to fulfill its fiduciary duty to the City. In executing this Agreement, the City acknowledges and accepts the potential conflicts of interest posed by the compensation to NSI. Northland Capital Holdings is the parent company of NSI. Another subsidiary of Northland Capital Holdings is Northland Trust, Inc. Northland Trust provides paying agent services to issuers of municipal bonds. The City is solely responsible for the decision on the source of paying agent services. Any engagement of Northland Trust is outside the scope of this Agreement. No compensation paid to Northland Trust is shared with NSI. NSI does not provide executive search, organizational development, compensation systems or other management consulting services that may directly or indirectly affect City staff that recommend the engagement of municipal advisor services and may pose a conflict of interest. LEGAL AND DISCIPLINARY ACTIONS There are no legal or disciplinary events reported by the Securities and Exchange Commission contained in Form MA or Form MA -I. The City can find information about these forms and accessing information related to NSI at www.sec.gov/municipal/oms-edgar-Iinks. The terms and provisions of this Agreement are binding upon and inure to the benefit of the City and NSI and their successors or assigns. 3 Agenda Page 46 Municipal Advisory Service Agreement TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the City or NSI and it shall terminate sixty (60) days following the closing date related to the issuance of the Debt. Dated this 5th day of June, 2019. Northland Securities, Inc. By: Michael Hart, Managing Director City of Albertville, Minnesota By: Its: 4 Agenda Page 47 Extract of Minutes of Meeting of the City Council of the City of Albertville, Wright County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was held at the City Hall in the City on Monday, July 15, 2019, commencing at 7:00 P.M. The following members of the Council were present: and the following were absent: The following resolution was presented by Councilmember who moved its adoption: RESOLUTION NO. 2019-028 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY $5,720,000 GENERAL OBLIGATION SANITARY SEWER REVENUE BONDS, SERIES 2019A BE IT RESOLVED By the City Council of the City of Albertville, Wright County, Minnesota (the "City") as follows: 1. Back ram. It is hereby determined that: (a) the City engineer has recommended the rehabilitation of a wastewater treatment plant in the City (the "Project"). 589473v1AL141-69 Agenda Page 48 (b) the City is authorized by the Minnesota Statutes, Sections 115.46 and 444.075 and Minnesota Statutes, Chapter 475, as amended (together the "Act'), to finance all or a portion of the cost of the Project (the "Project Costs") by the issuance of general obligation bonds of the City payable from net revenues of the sewer utility system of the City and from the imposition of ad valorem taxes (c) it is necessary and expedient to the sound financial management of the affairs of the City to issue approximately $5,720,000 General Obligation Sanitary Sewer Revenue Bonds, Series 2019A (the "Bonds") pursuant to the Act to provide financing for the Project. 2. Sale of Bonds. To finance the Project pursuant to the Act, the City will therefore issue and sell the Bonds in the proposed aggregate principal amount of $5,720,000, which amount is subject to adjustment in accordance with the official Notice of Sale attached hereto as EXHIBIT A (the "Notice of Sale"). The Bonds will be issued, sold, and delivered in accordance with the Notice of Sale. 3. Authority of Municipal Advisor. Northland Securities, Inc. is authorized and directed to negotiate the Bonds in accordance with the foregoing Notice of Sale. The City Council will meet at 7:00 P.M. on Monday, August 19, 2019, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. 4. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City, is authorized to act as bond counsel and to assist in the preparation and review of necessary documents, certificates and instruments relating to the Bonds. The officers, employees and agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such documents, certificates, and instruments. 5. Covenants. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. 6. Official Statement. In connection with the sale of the Bonds, the officers or employees of the City are authorized and directed to cooperate with Northland Securities, Inc. and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. (The remainder of this page is intentionally left blank.) 589473v1AL141-69 2 Agenda Page 49 EXHIBIT A NOTICE OF SALE $5,720,000* GENERAL OBLIGATION SANITARY SEWER REVENUE BONDS, SERIES 2019A CITY OF ALBERTVILLE, MINNESOTA (Book -Entry Only) NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms: TIME AND PLACE: Proposals (also referred to herein as "bids") will be opened by the City's Administrator, or designee, on Monday, August 19, 2019, at 10:30 A.M., CT, at the offices of Northland Securities, Inc. (the City's "Municipal Advisor"), 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402. Consideration of the Proposals for award of the sale will be by the City Council at its meeting at the City Offices beginning Monday, August 19, 2019 at 7:00 P.M., CT. SUBMISSION OF PROPOSALS Proposals may be: a) submitted to the office of Northland Securities, Inc., b) faxed to Northland Securities, Inc. at 612-851-5918, c) for proposals submitted prior to the sale, the final price and coupon rates may be submitted to Northland Securities, Inc. by telephone at 612-851-5900 or 612-851-5915, or d) submitted electronically. Notice is hereby given that electronic proposals will be received via PARITYTM, or its successor, in the manner described below, until 10:30 A.M., CT, on Monday, August 19, 2019. Proposals may be submitted electronically via PARITYTM or its successor, pursuant to this Notice until 10:30 A.M., CT, but no Proposal will be received after the time for receiving Proposals specified above. To the extent any instructions or directions set forth in PARITYTM, or its successor, conflict with this Notice, the terms of this Notice shall control. For further information about PARITYTM, or its successor, potential bidders may contact Northland Securities, Inc. or i-Deal® at 1359 Broadway, 2"a floor, New York, NY 10018, telephone 212-849-5021. Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITYTM' or its successor. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. BOOK -ENTRY SYSTEM The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. 589473v1AL141-69 3 Agenda Page 50 The Bonds will be issued by means of a book -entry system with no physical distribution of bond certificates made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the City through Northland Trust Services, Inc. Minneapolis, Minnesota (the "Paying Agent/Registrar"), to DTC, or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of the Bonds, will be required to deposit the bond certificates with DTC. The City will pay reasonable and customary charges for the services of the Paying Agent/Registrar. DATE OF ORIGINAL ISSUE OF BONDS Date of Delivery (Estimated to be September 24, 2019) AUTHORITY/PURPOSE/SECURITY The Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475 and Section 115.46. Proceeds will be used to finance the rehabilitation of a wastewater treatment plant. The Bonds are payable from net revenues of the City's sewer utility, and ad valorem taxes. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the debt service account established for this issue. In addition, the City has covenanted and obligated itself to be bound by the provisions of Minnesota Statutes, Section 446A.086, which provides for payment by the State of Minnesota, in the event of a potential default of certain city debt obligations, of the principal and interest on the Bonds when due. INTEREST PAYMENTS Interest is due semiannually on each February 1 and August 1, commencing February 1, 2020, to registered owners of the Bonds appearing of record in the Bond Register as of the close of business on the fifteenth day (whether or not a business day) of the calendar month preceding such interest payment date. MATURITIES Principal is due annually on February 1, inclusive, in each of the years and amounts as follows: Year Amount Year Amount Year Amount 2020 $315,000 2027 $265,000 2034 $305,000 2021 240,000 2028 265,000 2035 315,000 2022 245,000 2029 275,000 2036 320,000 2023 245,000 2030 280,000 2037 330,000 2024 250,000 2031 285,000 2038 340,000 2025 255,000 2032 290,000 2039 345,000 2026 260,000 2033 295,000 589473v1AL141-69 4 Agenda Page 51 Proposals for the Bonds may contain a maturity schedule providing for any combination of serial bonds and teen bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. INTEREST RATES All rates must be in integral multiples of 1/20th or 1/8th of 1%. The rate for any maturity may not be more than 1.00% less than the rate for any preceding maturity. Bonds of the same maturity must bear a single uniform rate from date of issue to maturity. ESTABLISHMENT OF ISSUE PRICE (HOLD -THE -OFFERING -PRICE RULE MAY APPLY — BIDS NOT CANCELLABLE) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at closing an "issue price" or similar certificate setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the City by the City's Municipal Advisor and any notice or report to be provided to the City may be provided to the City's Municipal Advisor. The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining "competitive sale" for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the "competitive sale requirements") because: (1) the City shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest cost), as set forth in this Notice of Sale. Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. In the event that the competitive sale requirements are not satisfied, the City shall promptly so advise the winning bidder. The City may then determine to treat the initial offering price to the public as of the award date of the Bonds as the issue price of each maturity by imposing on the winning bidder the Hold - the -Offering -Price Rule as described in the following paragraph (the "Hold -the -Offering -Price Rule"). Bids will not be subject to cancellation in the event that the City determines to apply the Hold -the - Offering -Price Rule to the Bonds. Bidders should prepare their bids on the assumption that the Bonds will be subject to the Hold -the -Offering -Price Rule in order to establish the issue price of the Bonds. By submitting a bid, the winning bidder shall (1) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the "Initial Offering Price"), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the Hold -the -Offering Price Rule shall 589473v1AL141-69 5 Agenda Page 52 apply to any person at a price that is higher than the Initial Offering Price to the public during the period starting on the award date for the Bonds and ending on the earlier of the following: (1) the close of the fifth (51h) business day after the award date; or (2) the date on which the underwriters have sold at least 10% of a maturity of the Bonds to the public at a price that is no higher than the Initial Offering Price to the public (the "10% Test"), at which time only that particular maturity will no longer be subject to the Hold -the -Offering -Price Rule. The City acknowledges that, in making the representations set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule, if applicable to the Bonds, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third -party distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule, if applicable to the Bonds, as set forth in the third -party distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule, if applicable to the Bonds, and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker -dealer that is a party to a third -party distribution agreement to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold -the -Offering -Price Rule if applicable to the Bonds. By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each third -party distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker - dealer that is a party to such third -party distribution agreement, as applicable, (A) to comply with the Hold -the -Offering -Price Rule, if applicable if and for so long as directed by the winning bidder and as set forth in the related pricing wires, (B) to promptly notify the winning bidder of any sales of Bonds that to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker -dealer, the winning bidder shall assume that each order submitted by the underwriter, dealer or broker -dealer is a sale to the public, and (ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter or dealer that is a party to a third -party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a party to such retail distribution agreement to comply with the Hold -the -Offering -Price Rule, if applicable, in each case if and for so long as directed by the winning bidder or the underwriter and as set forth in the related pricing wires. Notes: Sales of * any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute 589473v1AL141-69 Agenda Page 53 sales to the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale: (1) `public" means any person other than an underwriter or a related party, (2) "underwriter" means (A) any person that agrees pursuant to a written contract with the City (or withh the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third party distribution agreement participating in the initial sale of the Bonds to the public). (3) a purchaser of any of the Bonds is a "related party" to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation or another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than SO% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (4) "sale date" means the date that the Bonds are awarded by the Citv to the winning bidder. 589473v1AL141-69 7 Agenda Page 54 ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments shall be made promptly after the sale and prior to the award of Proposals by the City and shall be at the sole discretion of the City. The successful bidder may not withdraw or modify its Proposal once submitted to the City for any reason, including post -sale adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. OPTIONAL REDEMPTION Bonds maturing on February 1, 2028 through 2039 are subject to redemption and prepayment at the option of the City on February 1, 2027 and any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and principal amounts within each maturity to be redeemed shall be determined by the City and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the successful bidder. DELIVERY Delivery of the Bonds will be within forty days after award, subject to an approving legal opinion by Kennedy and Graven, Chartered, Bond Counsel. The legal opinion will be paid by the City and delivery will be anywhere in the continental United States without cost to the successful bidder at DTC. TYPE OF PROPOSAL Proposals of not less than $5,662,800 (99.00%) and accrued interest on the principal sum of $5,720,000 must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. Proposals for the Bonds should be delivered to Northland Securities, Inc. and addressed to: Adam Nafstad, City Administrator 5959 Main Ave. NE P.O. Box 9 Albertville, MN 55301 589473v1AL141-69 8 Agenda Page 55 A good faith deposit (the "Deposit") in the amount of $114,400 in the form of a federal wire transfer (payable to the order of the City) is only required from the apparent winningbidder, and must be received within two hours after the time stated for the receipt of Proposals. The apparent winning bidder will receive notification of the wire instructions from the Municipal Advisor promptly after the sale. If the Deposit is not received from the apparent winning bidder in the time allotted, the City may choose to reject their Proposal and then proceed to offer the Bonds to the next lowest bidder based on the terms of their original proposal, so long as said bidder wires funds for the Deposit amount within two hours of said offer. The City will retain the Deposit of the successful bidder, the amount of which will be deducted at settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to comply with the accepted Proposal, said amount will be retained by the City. No Proposal can be withdrawn after the time set for receiving Proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each Proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The City will reserve the right to: (i) waive non -substantive informalities of any Proposal or of matters relating to the receipt of Proposals and award of the Bonds, (ii) reject all Proposals without cause, and (iii) reject any Proposal which the City determines to have failed to comply with the terms herein. INFORMATION FROM SUCCESSFUL BIDDER The successful bidder will be required to provide, in a timely manner, certain information relating to the initial offering price of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. OFFICIAL STATEMENT By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide to the senior managing underwriter of the syndicate to which the Bonds are awarded, the Final Official Statement in an electronic format as prescribed by the Municipal Securities Rulemaking Board (MSRB). FULL CONTINUING DISCLOSURE UNDERTAKING The City will covenant in the resolution awarding the sale of the Bonds and in a Continuing Disclosure Undertaking to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as required by SEC Rule 15c2-12. BANK QUALIFICATION The City will designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BOND INSURANCE AT UNDERWRITER'S OPTION 589473v1AL141-69 9 Agenda Page 56 If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the successful bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the successful bidder of the Bonds. Any increase in the costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the successful bidder, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the successful bidder. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the successful bidder shall not constitute cause for failure or refusal by the successful bidder to accept delivery on the Bonds. The City reserves the right to reject any and all Proposals, to waive informalities and to adjourn the sale. Dated: July 15, 2019 BY ORDER OF THE ALBERTVILLE CITY COUNCIL /s/ Adam Nafstad City Administrator Additional information may be obtained from: Northland Securities, Inc. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 Telephone No.: 612-851-5900 589473v1AL141-69 10 Agenda Page 57 EXHIBIT A (ISSUE PRICE CERTIFICATE —COMPETITIVE SALE SATISFIED) The undersigned, for and on behalf of [NAME OF PURCHASER/REPRESENTATIVE] (the ["Purchaser"] ["Representative," on behalf of itself and other underwriters listed below (collectively, the "Underwriting Group")], with respect to the sale and issuance of the General Obligation Sanitary Sewer Revenue Bonds, Series 2019A (the "Bonds"), issued by the City of Albertville, Minnesota (the "Issuer"), in the original aggregate principal amount of $ , certifies as follows: Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the [Purchaser] [Underwriting Group] are the prices listed in EXHIBIT A attached hereto (the "Expected Offering Prices"). The Expected Offering Prices are the prices of the Maturities of the Bonds used by the [Purchaser] [Underwriting Group] in formulating its bid to purchase the Bonds. Attached hereto as EXHIBIT B is a true and correct copy of the bid provided by the [Purchaser] [Underwriting Group] to purchase the Bonds. (b) The [Purchaser] [Underwriting Group] was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by the [Purchaser] [Underwriting Group] constituted a firm offer to purchase the Bonds. (d) Capitalized terms that are used herein that are otherwise not defined shall have the meanings assigned to such terms in Section 5 hereof. 2. Purchase Price. The [Purchaser] [Representative] acknowledges that it is purchasing the Bonds for an aggregate purchase price of $ (par amount of Bonds of $ , plus original issue premium of $ , less original issue discount of $ less [a Purchaser's] [an underwriter's] discount of $ ), plus accrued interest in the amount of $ 3. Receipt of Bonds. The undersigned hereby acknowledges receipt of $ in original aggregate principal amount of the Bonds from the Issuer, frilly executed and authenticated. [The [Purchaser] [Representative] has paid to [NAME OF INSURER] the sum of $ as a premium for an insurance policy for the Bonds.] 4. Representations. The representations set forth in this Certificate of Purchaser (the "Certificate") are limited to factual matters only. Nothing in this Certificate represents the interpretation by the [Purchaser] [Representative] of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. The undersigned understands that the foregoing information will be relied upon by: (i) the Issuer with respect to certain of the representations set forth in a tax certificate of the Issuer executed on the date hereof with respect to compliance with the federal income tax rules affecting the Bonds; and (ii) Kennedy & Graven, Chartered, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Information Return for Tax -Exempt Governmental Obligations, Form 8038-G (Rev. September 2018), and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. Defined Terms. (a) "Maturity" means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (b) "Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" 589473v1AL141-69 I I Agenda Page 58 for purposes hereof generally means any two or more persons who have greater than fifty percent (50%) common ownership, directly or indirectly. (c) "Sale Date" means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is August 19, 2019. (d) "Underwriter" means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). IN WITNESS WHEREOF, the undersigned officer has executed this Certificate of Purchaser as of the date and year first written above. [PURCHASER] [REPRESENTATIVE] Name Its [Account Members:] (ISSUE PRICE CERTIFICATE — HOLD THE OFFERING PRICE RULE APPLIES) The undersigned, for and on behalf of [NAME OF PURCHASER/REPRESENTATIVE] (the ["Purchaser"] ["Representative," on behalf of itself and other underwriters listed below (collectively, the "Underwriting Group")], with respect to the sale and issuance of the General Obligation Sanitary Sewer Revenue Bonds, Series 2019A (the "Bonds"), issued by the City of Albertville, Minnesota (the "Issuer"), in the original aggregate principal amount of $ , certifies as follows: Initial Offering Price for the Bonds. (a) The [Purchaser] [Underwriting Group] offered each Maturity of the Bonds to the Public for purchase at the respective initial offering prices listed in EXHIBIT A attached hereto (the "Initial Offering Prices"). A copy of the pricing wire or equivalent communication for the Bonds is attached hereto as EXHIBIT A. Capitalized terms used herein that are otherwise not defined shall have the meanings assigned to such terms in Section 5 hereof (b) As set forth in the [Notice of Sale] [Terms of Proposal] and the bid award, the [Purchaser has] [members of the Underwriting Group have] agreed in writing that, (i) for each Maturity of the Bonds, [it] [they] would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "Hold -the -Offering -Price Rule"), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker -dealer who is a party to the retail distribution agreement, to comply with the Hold -the -Offering -Price Rule. Pursuant to such agreement, no Underwriter has offered or sold any Maturity of the Bonds at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 589473v1AL141-69 12 Agenda Page 59 2. Purchase Price. The [Purchaser] [Representative] acknowledges that it is purchasing the Bonds for an aggregate purchase price of $ (par amount of Bonds of $ , plus original issue premium of $ , less original issue discount of $ less [a Purchaser's] [an underwriter's] discount of $ ), plus accrued interest in the amount of $ 3. Receipt of Bonds. The undersigned hereby acknowledges receipt of $ in original aggregate principal amount of the Bonds from the Issuer, fully executed and authenticated. [The [Purchaser] [Representative] has paid to [NAME OF INSURER] the sum of $ as a premium for an insurance policy for the Bonds.] 4. Representations. The representations set forth in this Certificate of Purchaser (the "Certificate") are limited to factual matters only. Nothing in this Certificate represents the interpretation by the [Purchaser] [Representative] of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. The undersigned understands that the foregoing information will be relied upon by: (i) the Issuer with respect to certain of the representations set forth in a tax certificate of the Issuer executed on the date hereof with respect to compliance with the federal income tax rules affecting the Bonds; and (ii) Kennedy & Graven, Chartered, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Information Return for Tax -Exempt Governmental Obligations, Form 8038-G (Rev. September 2018), and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. 5. Defined Terms. (a) "Holding Period" means, with respect to each Maturity of the Bonds, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date, or (ii) the date on which the [Purchaser has] [Underwriters have] sold at least ten percent (10%) of such Maturity to the Public at prices that are no higher than the Initial Offering Price for such Maturity. (b) "Maturity" means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) "Public" means any person (including an individual trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" for purposes of this Certificate generally means any two or more persons who have greater than fifty percent (50%) common ownership, directly or indirectly. (d) "Sale Date" means the fast day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is August 19, 2019. (e) "Underwriter" means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). 589473v1AL141-69 13 Agenda Page 60 IN WITNESS WHEREOF, the undersigned officer has executed this Certificate of Purchaser as of the date and year first written above. [Account Members:] [PURCHASER] [REPRESENTATIVE] t Name Its 589473v1AL141-69 14 Agenda Page 61 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the resolution was declared duly passed and adopted. 589473v1AL141-69 Agenda ;age 62 STATE OF MINNESOTA ) COUNTY OF WRIGHT ) CITY OF ALBERTVILLE ) I, the undersigned, being the duly qualified and acting City Administrator of the City of Albertville, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, July 15, 2019, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of approximately $5,720,000 General Obligation Sanitary Sewer Revenue Bonds, Series 2019A of the City. WITNESS My hand as City Administrator and the corporate seal of the City this day of , 2019. City Administrator City of Albertville, Minnesota (SEAL) 16 589473v1AL141-69 Agenda Page 63 CERTIFICATION OF MINUTES RELATING TO GENERAL OBLIGATION SANITARY SEWER REVENUE BONDS, SERIES 2019A; COVENANTING AND OBLIGATING THE CITY TO BE BOUND BY AND TO USE THE PROVISIONS OF MINNESOTA STATUTES, SECTION 446A.086 TO GUARANTEE THE PAYMENT OF THE PRINCIPAL AND INTEREST ON THE BONDS ISSUER: City of Albertville, Minnesota BODY: City Council KIND, DATE, TIME AND PLACE OF MEETING: A regular meeting held on Monday, July 15, 2019, at 7:00 p.m., in the City Offices MEMBERS PRESENT: MEMBERS ABSENT: Documents Attached: Extract of Minutes of said meeting. RESOLUTION NO. 2019-029 RESOLUTION APPROVING THE ISSUANCE OF GENERAL OBLIGATION SANITARY SEWER REVENUE BONDS, SERIES 2019A; COVENANTING AND OBLIGATING THE CITY TO BE BOUND BY AND TO USE THE PROVISIONS OF MINNESOTA STATUTES, SECTION 446A.086 TO GUARANTEE THE PAYMENT OF THE PRINCIPAL AND INTEREST ON THE BONDS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS MY HAND officially as such recording officer on July 15, 2019. Clerk Agenda Page 64 Extract Of Minutes Of A Meeting Of The City Council Of The City Of Albertville, State Of Minnesota HELD: Monday, July 15, 2019 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Albertville, State of Minnesota, was duly held on Monday, July 15, 2019 at 7:00 p.m. Member adoption: introduced the following resolution and moved its RESOLUTION NO.2019-029 RESOLUTION APPROVING THE ISSUANCE OF GENERAL OBLIGATION SANITARY SEWER REVENUE BONDS; SERIES 2019A; COVENANTING AND OBLIGATING THE CITY TO BE BOUND BY AND TO USE THE PROVISIONS OF MINNESOTA STATUTES, SECTION 446A.086 TO GUARANTEE THE PAYMENT OF THE PRINCIPAL AND INTEREST ON THE BONDS BE IT RESOLVED by the City Council of the City of Albertville, State of Minnesota (herein, the "City"), as follows: l . The City Council hereby finds and declares that it is necessary and expedient for the City to sell and issue its fully registered general obligation sanitary sewer revenue bonds in the total aggregate principal amount of approximately $5,750,000 (herein, the "Bonds"). The proceeds of the Bonds will be used, together with any additional funds of the City which might be required to finance (i) the rehabilitation of a wastewater treatment plant, and (ii) to pay the costs associated with issuing the Series 2019A Bonds. 2. Minnesota Public Facilities Authority Credit Enhancement Program The following documents have been submitted to the Council and are on file in the office of the City Administrator: A. Form of Minnesota Public Facilities Authority (the "PFA") Credit Enhancement Program Agreement (the "Agreement"); and B. Application for Participation in the PFA Credit Enhancement Program (the "Application"). The Agreement and the Application are authorized and approved in substantially the forms presented to the Council. Submission of the Application to the PFA and payment of related fees are approved. The Agreement shall be prepared for execution in accordance with the approved forms and shall be signed by the manual signature of the Mayor and attested by the manual signature of the City Administrator. Agenda Page 65 The City hereby covenants and obligates itself to be bound by the provisions of Minnesota Statutes, Section 446A.086, as it may be amended from time to time (the "Credit Enhancement Act"). The City understands that as a result of its covenant to be bound by the provisions of the Credit Enhancement Act, the provisions of the Credit Enhancement Act shall be binding as long as any Bonds of this issue remain outstanding. The City further covenants to comply with all procedures now or hereafter established pursuant to the Credit Enhancement Act by the PFA and otherwise to take such actions as necessary to comply with the Credit Enhancement Act. The Mayor or City Administrator is authorized to execute any applicable PFA forms and to provide for the payment of the City's application fee of $500.00 payable to the Authority which fee is required to be submitted with the executed forms. The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Agenda Page 66 MINNESOTA PUBLIC FACILITIES AUTHORITY CREDIT ENHANCEMENT PROGRAM AGREEMENT This Credit Enhancement Program Agreement, dated as of , ("the Agreement"), is made between the Minnesota Public Facilities Authority (the "Authority") and City of Albertville, Minnesota (the "Governmental Unit"), in order to comply with the requirements of Minnesota Statutes, Section 446A.086 (the "Act"). The Governmental Unit has passed a resolution dated July 15, 2019, (the "Resolution) authorizing the issuance of its $5,750,000 General Obligation Sanitary Sewer Revenue Bonds, Series 2019A (the "Bonds"), the proceeds of which will be used to provide funds for rehabilitation of a wastewater treatment plant. The Governmental Unit represents that the Resolution authorizes the Governmental Unit to enter into this Agreement and obligates the Governmental Unit to be bound by the provisions of the Act. The Governmental Unit and the Authority agree as follows: Section 1. The Governmental Unit will deposit with Northland Trust Services, Inc. (and any subsequent paying agent) (the "Paying Agent") three business days before the date on which each payment is due on the Bonds an amount sufficient to make that payment. Section 2. The Governmental Unit will notify the Authority not less than 15 business days prior to the date a payment is due on the Bonds if the Governmental Unit will be unable to make all or a portion of the payment. Notification shall be provided by faxing and mailing a completed and executed Notification of Potential Default form to the Authority. Section 3. The Governmental Unit will include a provision in its agreement with the Paying Agent for the Bonds that requires the Paying Agent to immediately inform the Minnesota Commissioner of Management and Budget, with a copy to the Authority, if the Paying Agent becomes aware of a default or potential default in the payment of principal or interest on the Bonds or if, on the day two business days before the date a payment is due on the Bonds, there are insufficient funds on deposit with the Paying Agent to make the payment. For purposes of this paragraph and the Act, funds invested in a refunding escrow account established under Minnesota Statutes, Section. 475.67 that are to become available to the Paying Agent on a principal or interest payment date are deemed to be on deposit with the Paying Agent three business days before the payment date. Section 4. The provisions of this Agreement are binding with respect to the Bonds as long as the Bonds remain outstanding. Section 5. According to its terms, the Act is a contract with bondholders and may not be amended or repealed for the covered bonds so long as the covered bonds are outstanding. Section 6. The Governmental Unit agrees to provide the Authority with a copy of the final debt service schedule for the Bonds within 30 days of the closing date and an estimate of the interest savings that will be achieved by participation in the program. CE Program Agreement (rev. 1/17) Agenda Page 67 Pagel of 3 Section 7. The Authority has reviewed the application of the Governmental Unit dated July 15, 2019, and, based solely upon the application, the opinion of bond counsel and the provisions of this Agreement, verifies that the Bonds are participating in the Credit Enhancement Program established pursuant to the Act, and that if the Governmental Unit is unable to make any portion of the payment on the Bonds on or before the date due, the State of Minnesota, acting through the Authority, shall make such payment in its place pursuant to the Act, providing that funds are available in the State General Fund. The obligation to make a payment under the Act is not a general obligation of the State of Minnesota. The Act does not obligate the legislature to provide for the availability of funds in the General Fund for this purpose. Section 8. The Authority will provide to the Governmental Unit upon request, or to its duly authorized agent, any information which the State of Minnesota files with the Nationally Recognized Municipal Securities Information Repositories pursuant to the State's obligations under rule 15c2-12. Section 9. The Governmental Unit agrees to notify the Authority if the Paying Agent is replaced by a subsequent paying agent and to provide to the Authority a certification by the subsequent paying agent in the form set forth for the original paying agent below. IN WITNESS WHEREOF, the Authority and the Governmental Unit acknowledge their assent to this Agreement and agree to be bound by its terms and the terms of the Act through their signatures entered below. 1. CITY OF ALBERTVILLE, MINNESOTA: 2. PUBLIC FACILITIES AUTHORITY: By: Title: Mayor Date: July 15, 2019 By: Title: City Administrator Date: July 15, 2019 By (auth. signature): Title: Executive Director Date: 3. COMMISSIONER OF ADMINISTRATION: As delegated to: Office of State Procurement By (auth. signature): Date: Admin ID: CE Program Agreement (rev. 1/17) Agenda Page 68 Page 2 of 3 PAYING AGENT CERTIFICATION The undersigned Paying Agent for the bonds of the City of Albertville, Minnesota in the original principal amount of $ 5,750,000 referred to in the Agreement to which this certification is attached acknowledges, understands, and agrees to be bound by the procedures contained in Minnesota Statutes, Section 446A.086 and the Agreement which, in part, requires that the Paying Agent notify the Minnesota Commissioner of Management and Budget, with a copy to the Minnesota Public Facilities Authority if it becomes aware of a default or a potential default in the payment of principal or interest on those debt obligations, or if, on the day two business days prior to the date a payment is due on those debt obligations, there are insufficient funds to make the payment on deposit with the Paying Agent. Notification shall be provided by faxing and mailing a completed and executed Paying Agent Notification of Potential Default form to the Commissioner of Management and Budget and the Authority. I, Scott Miles, do hereby certify that I am a Chief Operating Officer duly appointed and acting as such, of the Paying Agent, and am authorized to execute this Certificate on behalf of the Paying Agent. W. Signature - Paying Agent Authorized Representative Date: July 15, 2019 TO BE COMPLETED BY THE PAYING AGENT Naive of Paying Agent Northland Trust Services, Inc. Address City State Zip 150 South Fifth Street, Suite 3300 Minneapolis MN 55402 Paying Agent Contact Person Title Telephone Number Fax Number Scott Miles Chief Operating Officer/Cashier 612-851-5914 612-851-4933 Paying Agent's Name of Bank Paying Agent's Bank Account Name Wells Fargo Bank, National Association Northland Trust Services, Inc. Bank Association Number Paying Agent Bank Account Number 121000248 143-6412710 Paying Agent Federal Tax ID State Tax ID 20-1369079 7134229 CE Program Agreement (rev. 1/17) Agenda Page 69 Page 3 of 3 CREDIT ENHANCEMENT APPLICATION FOR m MINNeSOTA PROGRAM PARTICIPATION PUBLIC FACILITIES AUTHORITY GENERAL INFORMATION AND INSTRUCTIONS: Minnesota Statutes, Section 446A.086 provides a procedure for the State to preclude default on general obligation bonds issued by cities and counties for certain specified purposes. The governmental unit must enter into an agreement with the Public Facilities Authority under which it covenants and obligates itself to be bound by this statute prior to the issuance of debt obligations in order to participate in this program. The purpose of this application is to: (1) inform the Minnesota Public Facilities Authority ("PFA") that participation in the program is desired, (2) request that the PFA execute the Credit Enhancement Program Agreement. TO BE COMPLETED BY THE GOVERNMENTAL UNIT Name of Governmental Unit Address City Zip Code City of Albertville 5959 Main Ave. NE, P.O. Box 9 Albertville 55301 Name of City/County Contact Person Title Telephone Number Fax Number Adam Nafstad City Administrator 763-497-3384 763-497-3210 Title/Description of Bonds Total Amount to be Issued: General Obligation Sanitary Sewer Revenue Bonds, Series 2019A $ 5,750,000 BOND Purpose for which bonds are being issued: ISSUE rehabilitation of a wastewater treatment plant INFORMATION Dated Date Expected Sale/Pricing Date Filial Maturity Date September 24, 2019 August 19, 2019 February 1, 2039 BOND COUNSEL INFORMATION Bond Counsel Firm Address Kennedy & Graven, Chartered 470 U.S. Bank Plaza, 200 South 6"' Street City State Zip Code Minneapolis Minnesota 55402 Bond Counsel Contact Person Telephone Number Fax Number Martha Ingram 612-337-9231 612-337-9310 Application Submittal Date: July 15, 2019 * This date should be at least two weeps prior to expected sale/pricing date. If less time, please contact the PFA. THIS COMPLETED APPLICATION FORM MUST BE ACCOMPANIED BY: 1. A nonrefundable application fee of $500 in the form of a check made payable to the Minnesota Public Facilities Authority. 2. Four copies of the fully completed Credit Enhancement Program Agreement, executed with original signatures by the Governmental Unit and the Paying Agent. The form of agreement provided by the Public Facilities Authority must not be altered. 3. An opinion of bond counsel in the form required. 4. Copy of resolution authorizing the governmental unit to enter into the Credit Enhancement Program Agreement and obligating the governmental unit to be bound by the provisions of Minnesota Statutes Section 446A.086. PLEASE RETURN TO: Minnesota Public Facilities Authority lsr National Bank Building, Suite W820 332 Minnesota Street St. Paul, MN 55101-1378 Attn: Jennie Brown Phone: 651-259-7469 Fax: 651-296-8833 1-17 Agenda Page 70 A\1bertville Mayor and Council Request for Action Smolt LWing. Big Ufs. July 15, 2019 SUBJECT: FINANCE — TORT LIABILITY INSURANCE RENEWAL RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Not waive the City's monetary limits on tort liability established by Minnesota Statues, Section 466.04 BACKGROUND: The City decided not to waive the monetary limits the past few years. Waiving the monetary limits increases exposure and raises the premium on an average of 3%. The League of Minnesota Cities Insurance Trust (LMCIT) requires "Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort limits to the extent of the coverage purchased. This decision must be made by the City Council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage." The City Council must make a decision to waive or not waive the statutory limits prior to the October 1, 2019 expiration/renewal date per LMCIT requirements in order for coverage to continue beyond that date. Upon submission of this "signed and dated" Waiver Form, the LMCIT will issue an Extension of Coverage Binder effective with a 10/1/2019 effective date. It usually takes more than thirty (30) days for the LMCIT to process a renewal application. The Extension of Coverage Binder assures the City of coverage beyond the 10/1/2019 renewal date. POLICY/PRACTICES CONSIDERATIONS: It is the City's policy to review and approve tort liability options annually. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends not waiving the tort liability. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to contract for insurance coverage including waiving the statutory tort liability limit. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, Administrator -PWD P:ACity Council\Council Packet Information\2019\071519\2019-07-15 Tort Liability RCA.docx Meeting Date: July 15, 2019 71 LEAGUE OF MINNESOTA CITIES CONNECTING & INNOVATING SING 1913 RISK MANAGEMENT INFORMATION LMCIT LIABILITY COVERAGE OPTIONS Liability Limits, Coverage Limits, and Waivers LMC1Tgives cities several options for structuring their liability coverage. The city can choose either to waive or not to waive the monetary limits the statutes provide, and the city can select from among several liability coverage limits. This memo discusses these options and identifies some issues to consider in deciding which of the options best meets the city's needs. What are the statutory limits on municipal tort liability? The statutes limit a city's tort liability to a maximum of$500,000 per claimant and $1,500,000 per occurrence. These limits apply whether the claim is against the city, against the individual officer or employee, or against both. What are the coverage limits for LMCIT's basic primary liability coverage? For coverage written or renewed on or after November 15, 2014, LMCIT's liability coverage will provide a limit of $2,000,000 per occurrence. Besides the overall coverage limit of $2,000,000 per occurrence, there are also annual aggregate limits (that is, limits on the total amount of coverage for the year regardless of the number of claims), for certain specific risks. Aggregate limits apply to the following: Products $3,000,000 annually Failure to supply utilities $3,000,000 annually Data security breaches $3,000,000 annually EMF $3,000,000 annually Limitedpollution* $3,000,000 annually Mold $3,000,000 annually Employers liability (work comp) $1,500,000 annually Land use/special risk litigation" $1,000,000 annually Activities in outside organizations $100,000 annually * Includes sudden and accidental releases of pollutants; h erbicide and pesticide application; sewer ruptures, overflows and backups; and lead and asbestos claims. Dredging or excavation claims are subject to a $250,000 sublimit. These limits apply to both damages and defense costs. ** Coverage is provided on a sliding scale percentage basis, which is based on participation in LMC1T's online land use training. Coverage applies to both damages and litigation costs. LEAGUE OF MINNESOTA CITIES 145UNIVIRMYAvr.WFST riio.vr:(G5I)281•i2o0 rAx:(651)281.1298 INSURANCE T ItU ST 5T. PAUL. MN 55 to3-2044 rvi1. fRtr: (800) 925-1 E22 � L�t WW%VtMCORc Agenda Page 72 Why does LMCIT provide higher coverage limits than the statutory limit? The reason is to give member cities better protection. The statutory liability limit caps the city's liability for many types of claims. But some liability claims, which are listed in the next section, aren't covered by the statutory Iimit, so the city's potential liability is unlimited, The higher limit also protects against a major incident in which many people might be injured. The $2,000,000 per occurrence coverage limit gives the city better protection for these types of claims, and makes it less likely the city could end up with liability exceeding its coverage limit. Another reason to provide higher limits is because it's increasingly more common to see contracts require more than the statutory limit of$1,500,000; a more common figure is a $2,000,000 limit. LMCIT's higher limits will now meet this requirement, but if even higher limits are required, there is the option to carry LMCIT's excess coverage to meet the additional requirements. LMCIT can also issue an endorsement to increase the city's coverage limit only for claims relating to a particular contract. If the statute limits our liability and LMCIT is already providing higher limits than required, why purchase even more limits? There are four good reasons why cities should strongly consider carrying LMCIT's excess coverage, which provides higher limits of liability coverage. Excess coverage is available in $1,000,000 increments, up to a maximum of$5,000,000. 1. The statutory tort limits either do not or may not apply to several types of claims The following are the types of claims the statutory limits do not apply to. LMCIT's higher limit of $2,000,000 will definitely provide better protection against these types of claims, but there could be cases where even that limit might not be enough. • Claims underfederal civil fights lams. These include Section 1983, the Americans with Disabilities Act, etc. • Clainns for tort liability that the city has assumed by contract. This occurs when a city agrees in a contract to defend and indemnify a private party. • Claims for actions in another state. This might occur in border cities that have mutual aid agreements with adjoining states, or when a city official attends a national conference or goes to Washington to lobby, etc. Clahns based on liquor sales. This mostly affects cities with municipal liquor stores, but it could also arise in connection with beer sales at a fire relief association fund-raiser, for example. Claims based on a "taking" theory. Suits challenging land use regulations frequently include an "inverse condemnation" claim, alleging that the regulation amounts to a "taking" of the property. 2. hMC1T`s primary liability coverage has annual limits on coverage for a few specific risks The table on page I lists the liability risks to which aggregate coverage limits apply. If tine city has a loss or claim in one of these areas, there might not be enough limits remaining to cover the city's fig 11 exposure if there is a second loss of the same sort during the year. 2 Agenda Page 73 Excess liability coverage gives the city additional protection against this risk as well. There are, though, a couple important restrictions on how the excess coverage applies to risks that are subject to aggregate limits: The excess coverage does not apply to the following types of risks: a Failure to supply utilities. o Mold. o "Limited pollution" claims if either the pollutant release or the damage is below ground or in a body of water. o Auto no-fault claims. o Uninsured/underinsured motorist claims. o Workers' compensation, disability, or unemployment claims. o Claims under the medical payments coverage. • The excess coverage does not automatically apply to liquor liability unless the city specifically requests it. 3. The city maybe required by contract to carry higher coverage limits LMCIT's limit of$2,000,000 will meet most contract requirements, but if even higher limits are required, LMC1T's excess coverage is an option. LMCIT can also issue an endorsement to increase the city's coverage limit only for claims relating to a particular contract. 4. There may be more than one political subdivision covered under the city's coverage An HRA, EDA, or port authority is itself a separate political subdivision. If the city EDA, for example, is named as a covered party on the city's coverage and a claim were made that involved both the city and the EDA, theoretically the claimant might be able to recover up to $1,500,000 from both the city and the EDA, since there are two political subdivisions involved. Excess coverage is one way to provide enough coverage limits to address this situation. Another solution is for the HRA, EDA, or port authority to carry separate liability coverage in its own name. This issue of multiple covered parties can also arise is if the city has agreed by contract to name another entity as a covered party, or to defend and indemnify another entity. Who needs excess liability coverage? If anything, excess Iiability coverage is even more important to a small city rather than to a large city. If a city ends up with more liability than it has coverage, the city will have to either draw on existing funds or go to its taxpayers to pay that judgment. A large city faced with, say, $1,000,000 of liability over and above what its LMCIT coverage pays might be able to spread that cost over several thousand taxpayers. The small city by contrast might be dividing that same $1,000,000 among only a couple hundred taxpayers. $1,000,000 divided among 5,000 taxpayers is $200 apiece -- annoying but probably at least manageable for most taxpayers. $1,000,000 divided among 200 taxpayers is $5,000 apiece — enough to be a real problem for many. What's the effect of waiving the "per claimant" statutory liability limit? For cities that choose to waive the statutory limits, the city is choosing to waive the protection of the statutory limits, up to the amount of coverage the city has. Someone with a claim against a 3 Agenda Page 74 city that has waived the statutory limits would be able to recover up to $2,000,000 (of course the individual would have to prove to the court or jury that he or she really does have that amount of damages), rather than the statutory lit -nit of $500,000 per claimant. Because the waiver increases the exposure, the premium i rou hl 3%higher for coverage under the waiver option. For cities that choose not to waive the statutory limits, the city's liability is limited by the statute to no more than $500,000 per claimant and $1,500,000 per occurrence. LMCIT's higher coverage Iimits would only come into play on those types of claims that aren't covered by the statutory liability limit. Why would the city choose to pay more for the waiver -option coverage? The statutory liability limit only comes into play in a case where: • The city is in fact liable. • The injured party's actual proven damages are greater than the statutory limit. Very literally, applying the statutory liability limit means an injured party won't be fully compensated for his or her actual, proven damages that were caused by city negligence. Some cities, as a matter of public policy, may want to have more assets available to compensate their citizens for injuries caused by the city's negligence. Waiving the statutory liability limits is a way to do that. Other cities may feel that the appropriate policy is to minimize the expenditure of the taxpayers' funds by taking full advantage of every protection the legislature has decided to provide. There's no right or wrong answer on this point. It's a discretionary question of city policy that each city council needs to decide for itself. What's the effect of waiving the statutory limits if the city has excess coverage? If the city has $1,000,000 of excess coverage and chooses to waive the statutory tort limits, the claimants (whether it's one claimant or several) could then potentially recover up to $3,000,000 in damages in a single occurrence. If the city carries higher excess coverage limits, the potential maximum recovery per occurrence is correspondingly higher. Carrying excess coverage under the waiver option is a way to address an issue that some cities find troubling: the case where many people are injured in a single occurrence caused by city negligence. Suppose, for example, that a city vehicle negligently runs into a school bus full of children, causing multiple serious injuries. $1,500,000 divided 50 ways may not go far toward compensating for those injuries. Excess coverage under the waiver option makes more fiords available to compensate the victims in that kind of situation. The cost of the excess liability coves e is about 25% greater if the city waives the statutory tort limits. The cost difference is proportionally greater than the cost difference at the primary level ' ` Necause for a city that carries excess coverage, waiving the statutory tort limits increases both the per- claimant exposure and the per -occurrence exposure. Is there an increase in risk if the city waives the statutory tort liability limits? There is no increase in risk for the city to end up with liability if LMCIT doesn't cover it. The waiver form specifically says the city is waiving the statutory tort liability limits only to the extent of the city's coverage. 4 Agenda Page 75 Of course, that's not to say there is no risk the city's liability could exceed its coverage limits. Listed earlier in this memo are a number of ways that could happen to any city, but the waiver doesn't increase that risk. Can the city waive the statutory tort limits for the primary coverage but not for the excess coverage? No. If the city decides to waive the statutory tort limits, that waiver applies to the Rill extent of the coverage limits the city has. The city cannot partially waive the statutory limits. Is there a simple way to summarize the options? It's not necessarily simple, but the table on the following Your-LeagueResource page is a shorthand summary of what the effect would be CallII thee UnUnderwriting of the various coverage structure options in different Department at 651.281.1200 circumstances, or 800.925.1122 with any questions. Agenda Page 76 b 0 0 3 ti +., c, O U O aa a� d O Q O O O O O O O O b9 6N9 bM9 coq ccncts U � 4-4 v m v 0 o U U Q O d Q O CD O Oco O b O ;� rn o ao o a a Q 0 o a oQ 0 � � (oq =sml Lol :--' ;--� 00 U O U U 0 .:w CO) U U U y lu #�A o 0 c � 3 C) 0 ., U o �� 0 0 0 cd o td QQ A3 xQ x3 Agenda Page 77 LEAGUE OF CONNECTING & INNOVATING MINNESOTA ITIES SINCE 11; C LIABILITY COVERAGE - WAIVER FORM LMCIT members purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. Please return the completed form to your underwriter or email to pstech@Imc.org This decision must be made by the member's governing body every year. You may also wish to discuss these issues with your attorney. League of Minnesota Cities Insurance Trust (LMCIT) members that obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: 0 if the member does not waive the statutory tort limits, an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits apply regardless of whether the city purchases the optional excess liability coverage. If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $2,000,000 for a single occurrence. (Under this option, the tort cap liability limits are waived to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2 million.) The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. 7 If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. City of Albertville & FDA LMCIT Member Name Check one: ❑ The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes, Section 465.04. ❑ The member WAIVES the monetary limits on municipal tort liability established by Minnesota Statutes, Section 466.04 to the extent of the limits of the liability coverage obtained from LMCIT. Date of city counci[/governing body meeting Signature 14S UNIVERSITY AVE. WEST ST. PAUL. M.N 55103-2044 Position PHONE- (651) 281-1200 &UG (651) 291-1299 TOLL ME: (800) 925-1122 wEB: www.Lmc.oRG Agenda Page 78 bertvill A\le S-1T..UNng.ftCity Lft. Mayor and Council Request for Action July 11, 2019 SUBJECT: PLANNING - PS DECK SITE PLAN AND CUP FOR LIMITED LIGHT INDUSTRIAL USE IN A PUD/B-2A ZONING DISTRICT LOCATED AT 6737 LABEAUX AVE NE RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution Number 2019-030 Approving a Site Plan and Conditional Use Permit for Limited Light industrial Use at 6737 Labeaux Avenue NE. BACKGROUND: PS Deck has filed an application for a Site Plan review and a Conditional Use Permit for limited light industrial use for a furniture and finishing business on the property located at 6737 Labeaux Ave NE in Albertville. On the June 3, 2019 the property was rezoned to PUD/B-2A district to allow for limited light industrial use. The property owner, Randy Stangler, is proposing a Conditional Use Permit to allow for PS Deck to begin occupancy. KEY ISSUES: Zoning. The site is zoned PUD/B-2A, Special Business District. A Conditional Use Permit would allow limited light industrial use on the property which is allowed as a conditional use in the PUD/B-2A Zoning District. Building and Fire Code. The building must meet all building and fire code requirements written in the building inspector's letter dated June 5, 2019 and obtain a certificate of occupancy prior to business occupancy. Utility Services. The applicant must demonstrate that current well and septic systems meet applicable code to serve the building tenants without issues. The building must also connect to the city's municipal water as elected to do so. Outdoor Storage. No outdoor storage is approved with this application. Paint/Spray Booth. All painting and or spraying must be conducted in the approved booth and no exterior fumes or by product may occur. Parking. Of the existing building, PS Deck will occupy half of it, 6,500 square feet. Parking stalls of the amount of 10 is adequate considering the limited number of employees and customers. All stalls must be paved, dimensioned and striped per city code. One disability parking stall must be designated and striped. Parking shall only occur within the appropriate paved stalls. P:ACity Council\Council Packet Information\2019\071519\RCA - PS Deck.docx 79 Meeting Date: July 15, 2019 Mayor and Council Request for Action — (July 15, 2019) PS Deck Site Plan and CUP Page 2 of 2 Summary of Conditional Use Permit — Limited Light Industrial Use. The applicant is seeking a Conditional Use Permit to allow for limited light industrial use. Conditional Use Permit approval will be conditioned on the following: 1. The building must meet all building and fire code requirements written in the building inspector's letter dated June 5, 2019 and obtain a certificate of occupancy prior to business occupancy. 2. The applicant shall demonstrate adequate and up to code utility services for the proposed uses. 3. The parking shall be consistent with the submitted Site Plan dated June 20, 2019. Parking shall only occur within the appropriate paved stalls. 4. No outdoor storage is approved with this application. 5. All painting and spraying must be conducted in the approved booth and no exterior fumes may occur. POLICY/PRACTICES CONSIDERATIONS: In accordance with State Law, public notice was published, and a public hearing held on July 9, 2019 by the Planning Commission for the Site Plan and the Conditional Use Permit. The Commission recommended that the City Council approve the application based on the findings and recommendations of the July 2, 2019 Planner's Report. FINANCIAL CONSIDERATIONS: The applicant shall be responsible for all costs associated with the Site Plan and Conditional Use Permit. There are no significant financial issues related to the Site Plan and Conditional Use Permit. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority approve the Site Plan, grant the Conditional Use Permit, which requires a majority vote of the City Council and becomes effective upon publication. Department/Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2019-030 Planning Report dated July 2, 2019 P:ACity Council\Council Packet Information\2019\071519\RCA - PS Deck.docx 80 Meeting Date: July 15, 2019 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2019- 030 RESOLUTION APPROVING A SITE PLAN AND CONDITIONAL USE PERMIT FOR A FURNITURE AND FINISHING BUSINESS WITHIN A PUD/B-2A ZONING DISTRICTLOCATED AT 6737 LABEAUX AVENUE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS, the City of Albertville has recently approved a PUD/13-2A zoning for property at 6737 Labeaux Ave NE, which allows limited light industrial uses by conditional use permit within this district: and WHEREAS, PS Deck has submitted an application for a site plan and conditional use permit for limited light industrial use with a PUD for a furniture finishing business at the property located at 6737 Labeaux Ave NE with Parcel Identification number 101-500-351-402 and 101-500-351-404; and WHEREAS, City Staff has reviewed submitted plans and prepared a planning report dated July 2, 2019; and WHEREAS, the Albertville Planning and Zoning Commission met and held a public hearing on July 9, 2019, to consider the application for a site plan and conditional use permit; and WHEREAS, upon considering the application materials, the July 2, 2019 planning report, and public testimony the Planning Commission closed the public hearing and recommended that the City Council approve the site plan and approve the CUP based on the submitted plans with conditions of the July 2, 2019 planning report as amended by the Planning Commission; and WHEREAS, the Albertville City Council met on July 15, 2019 to consider the site and building plan and conditional use permit applications; and WHEREAS, the Albertville City Council has received PS Deck's application materials including a site plan; staff review documents; the Planning Commission recommendation; and agrees with the findings and recommendation of the Planning Commission and the July 2, 2019 planning report. NOW, THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the site plan and conditional use permit for a furniture and finishing business based on the plans dated June 20, 2019 subject to the following conditions. 1. The building shall meet all building and fire code requirements and obtain a certificate of occupancy prior to business occupancy. Agenda Page 81 City of Albertville Meeting of July 15, 2019 Resolution No, 2019-030 Page 2 2. The applicant shall demonstrate on -site septic and well systems and meet applicable code requirements to serve the proposed tenants. 3. The parking shall be consistent with the submitted site plan dated June 20, 2019 with the following conditions: a. The paved parking area shall be dimensioned and striped per city code. Disability parking shall be designated and striped according. Parking shall occur only within the appropriate paved stalls. b. The parking area on the east side of the building is not approved and any expansion or change of use from existing conditions shall be processed through the appropriate development applications called for by the Albertville Zoning Ordinance. c. All areas beyond the approved paved parking areas shall be grassed and landscaped to define the boundaries of the approved parking area. Applicant shall provide a landscape plan that establishes a schedule for establishment of these turfed areas. 4. No outdoor storage is approved with this application. 5. All painting and or spraying must be conducted in the approve booth and no exterior fumes or byproduct may occur. Adopted by the Albertville City Council this 15th day of July, 2019. ATTEST: Kimberly A. Hodena, City Clerk Jillian Hendrickson, Mayor Agenda Page 82 NORTHWEST ASSOUATEP CONSULTANTS, MC., 4,150 Wson Meirnw iiall Iiii lhway, Ste. 320, Golden vaIIIIey, MN 55422 TeIlepIhone: 7G3.957.1100 We[jsite: www.inac:IpIlainniiin .c:cjirn TO: Adam Nafstad FROM: Al Brixius / Lexi Weihe DATE: July 2, 2019 RE: PS Deck CUP FILE NO: 163.06 19.05 PROPERTY ADDRESS: 6737 Labeaux Ave NE BACKGROUND PS Deck is a furniture finishing and painting company, which applies paint and finishes to cabinets and furniture. PS Deck has submitted a development application for a CUP for the allowance of limited light industrial use in a PUD/132-A zoning district. PS Deck is located in the Stangler Building at 6737 Labeaux Ave NE, Albertville Minnesota. PS Deck would occupy 6,500 square feet of the Stangler Building. The Stangler Building has recently been rezoned to a PUD/132-A Special Business District in order to broaden the allowable uses for the building and accommodate potential future tenants. This new zoning district allows for limited light industrial uses by conditional use permit. Attached for reference: Exhibit A: Site Plan 1 Exhibit B: Site Plan 2 Exhibit C: Building Inspector Letter - June 5t" 2019 AgendaEPage 83 ANALYSIS The rezoning of the property to a PUD with underlying 132-A (Special Business District) standards created a zoning district specific to the property. Performance standards were created for this district which would allow for light manufacturing as a CUP. Lot Size and Width The subject site is located on two separate parcels, with the building on the larger parcel to the north and a smaller parcel running parallel to 67t" Street NE. The parcel containing the building is 2 acres in area and the parcel parallel to 67t" Street NE is 1 acre in area. The site meets the minimum lot area and minimum lot width standards. The approximate width of the lot is 580 feet and the total area of the two parcels put together is 3 acres or 130,680 square feet. The site does not abut a Residential District, but it is recommended that screening be included surrounding the proposed fence. With this screening acting as a buffer, this would be an acceptable provision made to control and reduce noise. Conditional Uses — Limited Light Industrial: Light manufacturing is listed as a Conditional Use in the PUD/132-A zoning district with the conditions listed below: Light Industrial or assembly of a wide variety of products; provided, that: A. Tenants shall meet all building and fire code requirements for their building occupancy classification prior to occupancy. Comment: See the building inspector's letter in exhibit C for the requirements. The building must meet building and fire code and receive a certification of occupancy before entering the building. B. On site loading and delivery shall meet the conditions of chapter 1300 of the Albertville Zoning Code. Comment: The applicant has designated a loading zone on the east side of the building. This zone must only be used for loading and delivery and designated as a no parking zone. C. The applicant shall demonstrate adequate utility services for the proposed uses. If the private systems do not meet code, then connection to city utilities will be required. Comment: The applicant has elected to connect to the city municipal water. They must also maintain current well and septic systems. The well and septic system must meet code. Agenda age 84 D. Provisions are made to control and reduce noise, as well as, not producing exterior noise, glare, fumes, obnoxious products, byproducts or wastes or creates other objectional impacts or nuisances on the adjoining properties or the environment. Comment: The CUP submitted addresses the need for paint/spray booth due to the nature of the business. The application of paint and or finishes will be conducted with a Col -Met paint booth. According to the PS Deck, the spray booth is designed with exhaust filters and paint overspray arrestors to capture overspray vapors and odors before air is exhausted from the shop. The spray booth is designed not to generate fumes or odors to adjoining properties. All painting must be conducted in the approved paint booth. E. Required parking for the use shall be of paved surface, dimensioned and striped per city code. Disability parking shall be designated and striped accordingly. Comment: 10 parking stalls is adequate based on the small number of employees and the limited number of customers that would physically come to the business. One stall on the south side of the building is designated as a disability stall. See the site plan 1 in exhibit A for more details. Vehicles may only be parked in the approved designated, paved parking stalls. F. All trash and or recycling equipment shall be located within a trash enclosure or within the building. Comment: The site plan does not show any outdoor trash or recycling equipment, therefore, all dumpsters shall be within the building except for on trash pick-up days. Outdoor Storage No outdoor storage is approved with this application. Consideration of the outdoor storage shall be under a separate future interim use permit that is accompanied with a plan that details the response to the performance standards for this use. Only existing conditions with this application are approved, no future building expansions, permitted accessory uses or land uses are allowed. Any change of use from existing conditions shall be processed through the appropriate development applications called for by the Albertville Zoning Ordinance. RECOMMENDATION Staff recommends the approval of the PS Deck Conditional Use Permit to allow for limited light industrial use in this PUD/132-A zoning district at 6737 Labeaux Ave NE in Albertville. Agendas Page 85 Said approval is for the application and plans dated June 20t", 2019 with the following conditions: 1. The building shall meet all building and fire code requirements and obtain a certificate of occupancy prior to business occupancy. (See building inspector's letter, exhibit C) 2. The applicant shall demonstrate adequate and up to code utility services for the proposed uses. 3. The parking shall be consistent with the submitted site plan dated June 20t", 2019 with the following conditions: a. The paved parking area shall be dimensioned and striped per city code. Disability parking shall be designated and striped according. Parking shall occur only within the appropriate paved stalls. b. The parking area on the east side of the building is not approved and any expansion or change of use from existing conditions shall be processed through the appropriate development applications called for by the Albertville Zoning Ordinance. c. All areas beyond the approved paved parking areas shall be grassed and landscaped to define the boundaries of the approved parking area. Applicant shall provide a landscape plan that establishes a schedule for establishment of these turfed areas. 4. No outdoor storage is approved with this application. 5. All painting and or spraying must be conducted in the approve booth and no exterior fumes or byproduct may occur. CC. Paul Heins Sandy Stangler Randy Stangler Maeghan Becker Kim Hodea AgendatPage 86 a Ol L. ,I AgendalPage 87 IFR vew ff '7/ L7 Agendas Page 88 A�Ibcrtvillc Sir Town Wing. big Ubj Ulu. June 5, 2019 Randy Stangler 6737 Labeaux Avenue NE Albertville, MN 55301 RE: Conditions for Complete Submittal of Building Permit City of Albertville 5959 Main Avenue NE P. 0. Box 9 Albertville, MN 55301 (763) 497-3384 1. Building permit required for change of use and/or alterations. 2. State statute requires plans to be designed by a professional .architect or engineer for a change of use and/or alterations. 3_ Submitted floor plans must indicate location of spray booth, and all existing spaces and their use, including restrooms. Building floor plan shall be drawn to scale by the architect or professional engineer. 4. Alteration to a primary function or change of occupancy to a portion of the building shall be required to apply up to 20% of the building permit valuation for accessibility compliance. 5. Separate permits are required for electrical, fire suppression, fire alarm, HVAC system, plumbing and city water connection. 6. City water pen -nit will include WAC fee, water meter and inspection fee to be paid at the time of pick up. 7. Any alteration of electrical shall require a permit from the State of MN and inspection by the state inspector. Existing electrical system shall be reviewed by a licensed electrician to verify the existing electrical system will meet the current codes. 8. The proposed spray booth shall be approved by a MN licensed engineer, and shall include a fire suppression system, an approved exhaust system and make-up air system. 9. The existing ventilation system shall be verified by a licensed mechanical contractor or mechanical engineer to ensure the ventilations for breathing zones are code compliant: Must provide outdoor air calculations based on total square feet of the space. Any alteration of the mechanical system shall be designed by a mechanical engineer. 10. The existing 2-hour fire wall including parapet wall shall remain in place and any penetration shall be fire stop. Any duct work that passed through the fire wall shall have a fire damper installed. Paul Heins Building Official 763-416-7916 Exhibit C AgendalPage 89 bertvill A\le So.Tw.UNn9.f9City Lft. Mayor and Council Request for Action July 15, 2019 SUBJECT: PLANNING— RIGS TO RODS SITE PLAN REVIEW, CUP FOR MINOR AUTO REPAIR, AND INTERIM USE PERMIT FOR 6737 LABEAUx AVENUE NE RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Adopt Resolution Number 2019-031 Approving Rigs to Rods Site and Building Plans, Conditional Use Permit and Interim Use Permit 6737 Labeaux Ave NE. BACKGROUND: Rigs to Rods has filed an application for Site Plan review, a Conditional Use Permit for minor auto repair and an Interim Use Permit for outdoor storage on property located at 6737 Labeaux Ave NE in Albertville. The Stangler Building, in which Rigs to Rods operates out of, has recently been rezoned to PUD B-2A. A minor auto repair shop is an allowed use in this zoning district with a Conditional Use Permit. Rigs to Rods is looking to obtain a CUP for their business and has submitted Site and Building Plans to city staff for review. Rigs to Rods is also seeping to add a fenced outdoor storage area to the west of the building in order to store materials and vehicles that are being serviced. An Interim Use Permit is needed prior to the construction of the outdoor storage area. KEY ISSUES: Zoning. The site is zoned PUD B-2A, Special Business District. A minor auto repair shop is allowed with a Conditional Use Permit and outdoor storage is allowed as an interim use in the PUD B-2A Zoning District. Landscaping and Screening. The outdoor storage area must be completely screened from view of the public street and adjoining properties. This screen may consist of a privacy screened fence or landscaping. A chain link fence with slats within the fence is not an acceptable screen fence. Applicant will need to determine the type of screening they choose to pursue and provide a plan set that may be reviewed and approved by city staff. Within the screening area, the stacking of materials that exceed the height of the screening / fence shall be prohibited. U-Haul Open or Outdoor Display Area. Open or outdoor display areas outside of the storage area are limited to 10 percent of the tenant's gross floor area of the principal building on site. Rigs to Rods operates out of a 5,000 sf space, and would, therefore, be allowed 500 sf of an open or outdoor display area for the business' U-Haul rental trucks and trailers. P:ACity Council\Council Packet Information\2019\071519\RCA - Rigs to Rods.docx Meeting Date: July 15, 2019 Agenda Page 90 Mayor and Council Request for Action — July 15, 2019 (Rigs to Rods) Page 2 of 2 Surfacing and Parking. Outdoor storage areas will be surfaced with asphalt, concrete, or crushed rock (granite) to control dust or mud surfaces. Parking for the business shall be located only on paved surfaces and shall be prohibited on dirt or grassed areas of the site. Noise Mitigation. All business operations are to occur within the building, with the doors closed to prevent an overabundance of noise. Trash Equipment. All trash and recycling equipment for the business shall be kept within the building except for trash pick-up days. Building and Fire Code. The building must meet all building and fire code requirements and obtain a certificate of occupancy. Conditions. The Planning Commission has approved all conditions outlined in the July 3, 2019 Planner's Report for outdoor storage and a minor auto repair shop in a PUD / B-2A zoning district. POLICY/PRACTICES CONSIDERATIONS: In accordance with State Law, public notice was published and a public hearing held on Tuesday, July 9, 2019 by the Planning Commission for the Site and Building Plans, Conditional Use Permit and Interim Use Permit. The Commission recommended that the City Council approve the application based on the findings and recommendations of the July 3, 2019 Planner's Report. FINANCIAL CONSIDERATIONS: The applicant shall be responsible for all costs associated with the Site and Building Plans, Conditional Use Permit and Interim Use Permit. There are no significant financial issues related to the Site and Building Plans, Conditional Use Permit and Interim Use Permit. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to approve the Site and Building Plans, grant the Conditional Use Permit and Interim Use Permit, which requires a majority vote of the City Council and becomes effective upon publication. Department/Responsible Person: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2019-031 Planning Report dated July 3, 2019 P:ACity Council\Council Packet Information\2019\071519\RCA - Rigs to Rods.docx Meeting Date: July 15, 2019 91 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2019-031 RESOLUTION APPROVING A SITE AND BUILDING PLAN, CONDITIONAL USE PERMIT FOR AN AUTO REPAIR SHOP AND AN INTERIM USE PERMIT FOR OUTDOOR STORAGE LOCATED AT 6737 LABEAUX AVE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS, the Stangler Building located at 6737 Labeaux Ave NE has been rezoned to PUD / B-2A, allowing for an auto repair shop as a conditional use permit and outdoor storage as an interim use permit; and WHEREAS, Rigs to Rods has submitted an application for a site and building plan, conditional use permit for a minor auto repair shop and an interim use permit for outdoor storage at the property located at 6737 Labeaux Ave NE with Parcel Identification Numbers 101-500- 351-402 and 101-500-351-404; and WHEREAS, City Staff has reviewed submitted plans and prepared a planning report dated July 3, 2019; and WHEREAS, the Albertville Planning and Zoning Commission met and held a public hearing on July 9, 2019, to consider the application for a site and building plan, conditional use permit and interim use permit; and WHEREAS, upon considering the application materials, the July 3, 2019 planning report, and public testimony the Planning Commission closed the public hearing and recommended that the City Council approve the site and building plan and conditions of the July 3, 2019 planning report as amended by the Planning Commission; and WHEREAS, the Albertville City Council met on July 15, 2019 to consider the site and building plans, conditional use permit and interim use permit applications; and WHEREAS, the Albertville City Council has received Rigs to Rods' application materials including a site plan; staff review documents; the Planning Commission recommendation; and agrees with the findings and recommendation of the Planning Commission and the July 3, 2019 planning report. NOW, THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the site and building plans, conditional use permit for a minor auto repair shop and an interim use permit for outdoor storage based on the plans dated June 10, 2019 subject to the following conditions. Auto Repair CUP: l . The business parking shall be located on a paved surface; parking on dirt or grassed areas of the site is prohibited. The parking area shall be striped to provide Agenda Page 92 City of Albertville Meeting of July 15, 2019 Resolution No. 2019-031 Page 2 15 parking stalls and 1 disability parking stall shall be properly dimensioned to meet city code. 2. All business operations and repairs shall occur within the building. No outdoor automobile repairs. Trash and recycling handling equipment shall be kept within the building or the approved screened outdoor storage area except for trash pick-up days. 4. The business's tenant bay shall meet all building and fire codes and receive a certificate of occupancy. Outdoor Storage Interim Use Permit: 1. Outdoor storage will be allowed as an interim use permit. The outdoor storage interim use permit will expire with a change of use for the tenant bay, or the redevelopment of the building or site. 2. The applicant shall provide the following additional information pertaining to the outdoor storage permit to be reviewed and approved by city staff prior to its installation. a. Site plan showing the location, size, setbacks and access to the outdoor storage area. b. Fence detail showing the fence type, material, height and gate details C. Screening plan for the outdoor storage area. This is either a screen fence or landscape plan. d. Outdoor storage area surfacing plan that meets the surfacing requirements of the city. e. Until the outdoor storage area is approved and constructed the current illegal outdoor storage is removed from the site. f. Stacking of materials within the outdoor storage area above the height of the provided screening shall be prohibited. g. Outdoor storage beyond the approved and constructed outdoor storage area is prohibited. h. The items stored in the outdoor storage area shall be limited items related to the operation of Rigs to Rods. Outdoor storage of hazardous materials is prohibited. Agenda Page 93 City of Albertville Meeting of July 15, 2019 Resolution No. 2019-031 Page 3 Open or Outdoor Display of Merchandise: l . Submission of a site plan that illustrate the location and size of the display area. The display area is limited to 10% of the tenant bay floor space (500 sq. ft.) 2. The display area must be on a bituminous surface. Product display on dirt or grassed areas is prohibited. The display area must be accessed from the existing paved parking area. Adopted by the Albertville City Council this 151h Day of July, 2019. ATTEST: Kimberly A. Hodena, City Clerk Jillian Hendrickson, Mayor Agenda Page 94 NORTHWEST ASSOCIATED CONSULTANTS, INC, 4,150 C) II s o iri M e irn w° ii a II Il ii h w a y , TeIlepIh oirie: 7G3.957.1100 TO: Adam Nafstad FROM: Al Brixius / Ryan Saltis DATE: July 3, 2019 RE: Rigs to Rods CUP FILE NO: 163.06 19.03 PROPERTY ADDRESS: 6737 Labeaux Ave NE Ste. 320, Goldeiri VaIllley, MN 5422 IV°j s ii e : w w w . iri a c: II a iri iri ii iri . c: o irri WIC[1yf~7iI*1072EARMSTit"ti[�yN7iI�k�'i�[[�L! BACKGROUND Rigs to Rods, an auto repair shop located in the Stangler Building at 6737 Labeaux Ave NE, has submitted a development application for a CUP for the allowance of a minor auto repair shop and an interim use permit for outdoor storage in a PUD / B-2A zoning district. The Stangler Building has recently been rezoned to a PUD / B-2A Special Business District in order to broaden the allowable uses for the building and accommodate potential future tenants. This zoning district does allow for minor auto repair shops with a Conditional Use Permit. The site plans submitted also addresses the need for outdoor storage on the property due to the nature of the business. Rigs to Rods is an automotive repair shop providing services such as oil changes, tire repair, brakes, minor collision work, boat and RV mechanical work and cleaning services. The business also includes a U-Haul rental service with moving trucks and trailers, as well as retail sales of boxes and other moving items. It is proposed that the outdoor storage area will be used for customer drop-off and pick-up of their vehicles as well as storage for materials of the business. It is intended that by having a designated fenced -in outdoor storage area on the property, there will be proper boundaries set and will provide fluidity of traffic. The site plans propose a U-Haul area that will be used to display rental trucks and trailers and will be classified as an accessory use of open or outdoor display areas. 15 Agenda Page 95 Attached for reference: Exhibit A: Site Plans Exhibit B: Building Plans Exhibit C: Narrative ANALYSIS The rezoning of the property to a PUD with underlying B-2A (Special Business District) standards created a zoning district specific to the property. Performance standards were created for this district which would allow for a minor auto repair shop as a CUP and outdoor storage as an Interim Use Permit. Minor automobile repair is listed as a Conditional Use in the B-2A zoning district with the conditions listed below: 4350.4 Conditional Uses: The following are conditional uses in a B-2A district, subject to additional requirements set forth in this ordinance: (Requires a conditional use permit as regulated by chapter 400 of this ordinance.) Automobile repair - minor; provided, that: A. The site consists of a minimum lot area of twenty thousand (20,000) square feet and minimum lot width of one hundred fifty feet (150'). • The approximate width of the lot is 580 feet and the total area of the two parcels put together is 3 acres or 130,680 square feet. B. Landscaping and screening not less than five feet (5') in width shall be provided at the boundaries abutting an R district in compliance with section 1000.7 of this ordinance. • The site does not abut a Residential District but screening is required of the area surrounding the proposed outdoor storage. The applicant must provide site plans illustrating screening by either a privacy fence or with landscaping. C. Parking or automobile storage space shall be screened from view of abutting R districts in compliance with section 1000.7 of this ordinance. • Parking shall be limited to the paved surfaces on the south side of the building or within the proposed outdoor storage area. No parking shall be allowed in grassed or landscaped areas. Rigs to Rods have 16 paved parking spaces along the building and P.S Deck has 10 parking spaces. One disability parking 16 Agenda Page 96 stall is required by the ADA for the building (Minimum Requirements: 1 per 25 stalls). All parking must be dimensioned and striped to meet City Code. D. Provisions are made to control and reduce noise. All operations of the business are internal within the building to reduce noise. Operations shall be conducted with the doors closed to avoid nuisance noise issues. Outdoor Storage. Currently the lease of the building prohibits outdoor storage. This use is not allowed in the 13-2A district and is illegal under the previous zoning. However, after the rezoning to a PUD/ 13-2A, outdoor storage is not allowed as an interim use permit. Until the interim use permit is approved and the outdoor storage area is constructed the current outdoor storage on the lot remains illegal and must be removed. The owner of the building willing to make some accommodation for future outdoor storage, staff included the following conditions specific to this PUD: Outdoor Storage is allowed as an Interim Use Permit within the PUD/ B-2A district under the conditions that the applicant provides site plans and construction details that address location, fencing type, surfacing, lighting and screening. To date the applicant has only provided a site plan showing the proposed location of the outdoor storage area. Additional plans and construction details are required to demonstrate that they will meet the following zoning requirements. A. Outdoor storage will be allowed as an interim use permit. • Any change of use of the tenant bay or redevelopment of the building or site will result in the expiration of the interim use permit for outdoor storage. B. Outdoor storage shall not be allowed in the front yard (east side of the building) shall be setback 35 feet from the south lot line and setback 10 feet from the west and north lot lines. • The proposed outdoor storage area per the submitted site plan meets the setback standards in the B-2A Zoning District: Building Setbacks Setbacks Required Proposed Compliance Front (East) Prohibited Prohibited Yes Side (North) 10 ft. 10 ft. Yes Side (South) 35 ft. 55 ft. Yes Rear (West) 20 ft. 10 ft. No 17 Agenda Page 97 C. Outdoor storage shall be fenced around the entire storage area. No storage shall occur outside of the approved storage area. Applicant must provide a construction detail for the proposed fence illustrating fence type, materials, height and construction details. The plan must also illustrate the gate design and location receiving access from the paved parking area. Fence within a commercial property may be up to 8 feet in height. Fences over six feet in height must be engineered. Said fence design shall be reviewed and approved by the city staff. D. Within the PUD, outdoor storage area shall be screened (landscaping or screen fence) from the public street and adjoining properties. The outdoor storage area must be total screened from view of the public street and adjoining properties. This screen may consist of a privacy screened fence or landscaping. If a chain link fence with slats within the fence is not acceptable screen fence. Applicant will need to determine the type of screening they choose to pursue and provide a plan set that may be reviewed and approved by city staff. Within the screening area, the stacking of materials that exceed the height of the screening / fence shall be prohibited. E. Outdoor storage areas will be surfaced with asphalt, concrete, or crushed rock (granite) to control dust or mud surfaces. • The applicant has not provided any information on the proposed surfacing of the outdoor storage area. The applicant shall provide information on how the outdoor storage area will be surface with material that meets code and can be approve by City Staff. F. The site plan will be required to illustrate access and egress to the outdoor storage area that does not interfere with the required parking. The access and egress to the outdoor storage area is not illustrated on the site plans. Future plans must include where vehicles will be accessing and circulating around the outdoor storage area and property. New site plans must be submitted to determine a location for entering/exiting the outdoor storage area. Said access and exiting shall occur via a paved surface. Access and traffic circulation for the outdoor storage area via a grassed or unpaved surface is prohibited. m Agenda Page 98 Based on our review of the outdoor storage request staff; is comfortable in having the planning commission and council approve the western outdoor storage area with conditions that the applicant provide additional information that demonstrates full compliance with the performance standards for outdoor storage outlined in the City zoning code and subject to City staff approve of the submitted information.. Site plans show another proposed outdoor storage area to the north of the building. This area is not part of the current application and is not being considered. A separate application will be required in the future if this outdoor storage area will be pursued. Open or Outdoor Display of Merchandise: Site plans also illustrates a U-Haul area located south of the fenced outdoor storage area. This would fall into the category of a permitted accessory use as an open or outdoor display of merchandise and shall follow the standards set in the B-2A zoning district: Open or outdoor display of merchandise for sale or rent as an accessory use; provided, that: A. Outdoor display of merchandise connected with the principal use is limited to ten percent (10%) of the gross floor area of the principal building or tenant bay, as applicable. • Rigs to Rods has 5,000 sf of the building on site. Ten percent of 5,000 would equal 500 sf of outdoor display of merchandise that would be allowed. Currently the site plans illustrate greater than 500 sf that would be the U-Haul display area. Site plans must be modified to show a display area of 500 sf or less. B. The use does not take up parking space as required for conformity to this ordinance. • The location of the U-Haul display area does not interfere with current parking on site. However, the proposed display area on the site plans must be altered to 500 sf or less in area. Staff suggests that the relocation of the U-Haul display area shall continue to not interfere with existing parking on site. C. The outdoor display area is surfaced with bitumen. • The outdoor display cannot occupy a grass or dirt area of the site. Any outdoor display area must be on a bituminous surface and meet the dimensional restriction noted above. 19 Agenda Page 99 D. The applicant demonstrates that pedestrian circulation is not disrupted as a result of the outdoor display area by providing the following: Outdoor display area shall be segregated from through pedestrian circulation by means of temporary fencing, bollards, ropes, plantings, or other methods. 2. Minimum clear passage zone for pedestrians at the perimeter of the outdoor display area shall be at least five feet (5') without interference from parked motor vehicles, bollards, trees, tree gates, curbs, stairways, trash receptacles, streetlights, parking meters, or the like. • The location of the 500 sf or less display area will not disrupt pedestrian circulation on site. Site plans must be modified to reflect a location, size and surfacing of the U-Haul display area. RECOMMENDATION Auto Repair CUP: Staff recommends the approval of the Conditional Use Permit to allow for an auto repair shop in this PUD B-2A zoning district with the following conditions: 1) The business parking shall be located on a paved surface; parking on dirt or grassed areas of the site is prohibited. The parking area shall be striped to provide 15 parking stall and 1 disability parking stalls shall be properly dimensioned to meet city code. 2) All business operations and repairs shall occur within the building. No outdoor automobile repairs. 3) Trash and recycling handling equipment shall be kept within the building except for trash pick-up days. 4) The business's tenant bay shall meet all building and fire codes and receive a certificate of occupancy. Outdoor Storage Interim Use Permit: Staff recommends approval of an interim use permit for the outdoor storage area on the west side of the building per the site plan with the following conditions: 1) Outdoor storage will be allowed as an interim use permit. The outdoor storage interim use permit will expire with a change of use for the tenant bay, or the redevelopment of the building or site. 20 Agenda Page 100 2) The applicant shall provide the following additional information pertaining to the outdoor storage permit. a) Site plan showing the location, size, setbacks and access to the outdoor storage area. b) Fence detail showing the fence type, material, height and gate details c) Screening plan for the outdoor storage area. This is either a screen fence or landscape plan. d) Outdoor storage area surfacing plan that meets the surfacing requirements of the city. e) Until the outdoor storage area is approved and constructed the current illegal outdoor storage is removed from the site. f) Stacking of materials within the outdoor storage area above the height of the provided screening shall be prohibited. g) Outdoor storage beyond the approved and constructed outdoor storage area is prohibited. h) The items stored in the outdoor storage area shall be limited items related to the operation of Rigs to Rods. Outdoor storage of hazardous materials is prohibited. The aforementioned information shall be submitted for the review and approval of city staff prior to construction and use of the outdoor storage area. The aforementioned items shall be imposed as conditions for the operation and use of the interim use permit. Outdoor Display of Merchandise: Within the PUD/B-2A zoning district limited outdoor display of merchandise is allowed as an accessory use. While the site plan identifies a display area, it does not meet the city performance standards. Staff does not recommend approval of the display area as illustrated on the site plan. The applicant may pursue this through staff review and approval with the submission of the following information. 1) Submission of a site plan that illustrate the location and size of the display area. The display area is limited to 10% of the tenant bay floor space (500 sq. ft.) 2) The display area must be on a bituminous surface. Product display on dirt or grassed areas is prohibited. 3) The display area must be access from the existing pave parking area. Cc Maeghan Becker Paul Hiens Kim Hodea Robert Spring Rigs to Rods Randy Stangler. 21 Agenda Page 101 I 9� � F t t4 _ ' Agenda Page 102 _ 0 x LU N N If A Agenda..Page 103 M N Business narrative Name Rigs to Rods Location 5737 Labeaux Ave. Suite 4Alb.ertviile, MN To Whom it may concern Rigs to Rods is a automotive repairfaciiity, providing services such asoil changes, brake service, tire repairand service, suspension service, performing Minor automotive repairand Maintenace. We provide minorcollision work replacingbroken bumpersfenders etc. We also provide service on trailers ( tires and wheel bearings) and minor mechanical workon RV's and boats ( tune ups, exhaust work, carburetor cleaning). Our facilityalso cleans hand washes and vacuums customers cars In our designated cleaning bays (for after repairwork cleaning customervehicles) Our facility also houses a Uhaul rental service providingour community with a much needed rental service far movingtruck and trailers as well as retail sales of boxes and other moving items. Ourfadlity if approved will support3-6 employees including the owneras well as 3 service bays with hoist for mechanical repair, aswell as4 flat bays for inside customerwork and or short term storage (while waiting on parts for customer cars some custom order parts take time and require the vehicle to be stored indoors). We also have 2 flat bays for cleaning of customers cars after repairwork is finished. Ourfacility houses50DO sg ftof shop space, and 5W sgftof office retail space, our proposed outside storage space of 18,300 sgftof outdoor storage and uhaul parking; outdoor storage used for temporay customer work parking/ or drop off work (customers at times have vehicles dropped offelther by person or tow with no expected time of completion so we can work Intoour schedule) Exhibit C Agenda*age 104 Outdoor storage proposal Name Rigs to Rods Location 6737 Labeaux Ave. Suite 4 Albertville, MN To Whom it.may concern Rigs to Rods in accordance with approval of outdoor storage site plan Our facility is looking to have outdoor storage.upon approval of the city our outdoor storage area per the property owner would Include 14,300sq ft.of outdoor storage. We would propose a fence either chain link privacy fence or wooden privacy fence of 6 ft tall on the proposed site plan lines for the fenced area. Our parking surface would he graded for proper waterrun.off and crushed asphalt applied to the proposed storage areato provide pI proper base for any and all vehicles stored temporaraly on site during the repair process. Current.lighting is already attached to the building for the proposed area no need for additional lighting would.,b.e needed at this point. Rigs to Rods under approval of the city for the storage area would ask for 5 months to complete this project to provide ample time for proper quotes and permits If needed for.this construction process as well as to work with other local businesses on scheduling for time and material delivery and installation. Exhibit C Agenda *age 105 Nbertvill-c GENERAL ADMINISTRATION City Administrator's Update July 11, 2019 Arena Board: The July meeting was cancelled. Centennial Planning: Work is progressing well and the next meeting is scheduled for Monday, July 22, 2019 at 7:00 p.m. Budget Workshops: Staff is tentatively planning on the first budget meeting to be on July 15 at the end of the regular meeting, followed by two workshops in August. Hana Building: A hazardous building letter was sent to the owners to take action on removing the building and cleaning up the site. Planning Commission Items: Items that were at the July Planning Commission meeting included PS Deck CUP, Rigs to Rods CUP and Federated Coop PUD Amendment. Staff will have an update at the meeting on these items. Long Range Plan: Financial consultant, Andy Berg, with Abdo, Eick and Meyers will be at the meeting to review the city's current long range plan. 1-94 Corridor Coalition: The Coalition was excited to learn that two federal BUILD grants will be submitted for 1-94 projects. One is for completion of the 610 interchange and the other for completion of the 6-lane gap between Albertville and Monticello. The two grant applications will be the focus of the D.C. Fly- in later this month. Also, the Coalition is currently evaluating lobbying services for 2020. ENGINEERING/PUBLIC WORKS 70th Street Project (Kadler to CSAH 19): Albertville and Otsego have both approved the partnership agreement with MnRoad. I expect to have a construction schedule soon. WWTP Forcemain Project: We have received the MPCA permit from the state and held the pre - construction conference with the contractor on July 10. Construction will begin later this month with direction drilling on CSAH 19. 1-94 Improvements Update: The design build HCPCi/Mead & Hunt is working on schedule and coordination of the project. We will have better understanding of a schedule in early August. Work is planned to begin on the west side of CSAH 19 and with construction of the EB C-D road and bridge . During bridge construction, the existing WB C-D road will be used for mainline traffic and there will be periods where the eastbound exit ramps need to be temporarily closed. Agenda Page 106 2019 Street and Trail Improvements: Progress of the project has been slow due to weather conditions but we anticipate all concrete work will be complete by early next week with driveway and boulevard restoration to follow. The driveway replacement option for those driveways impacted by the project has been received well; however, the number of driveways being replaced has caused some delay to the overall project. We have a link to a project webpage on the city's website: www.ci.albertville.mn.us/2019-improvements. Westwind Park: The gazebo will be complete the week of July 15 and Omann's will be paving the trails and doing final grading and seeding as soon as it dries out. CSAH 19 and 70th Street: The project will be re -bid in November or so, and specify that the work will begin in 2020. 11435 58th Street NE House Demo: The agreement for the demolition has been executed and is scheduled to occur later this month. As part of the project, the site needed to be inspected for asbestos. A few materials, such as some flooring and siding containing asbestos were discovered and will be removed prior to demo. Street Striping: City wide street striping is scheduled to be completed later this month. St. Michael Sewer Extension: As part of the sewer extension to Fieldstone Passage in St. Michael, staff is working with Lennar on a sign easement agreement for the HOA to have a monument sign on the pond lot owned by Albertville. Miscellaneous Drainage Improvements: Staff is working on a number of drainage projects that will require storm sewer improvements. Upcoming Events: July 24-26, 1-94 Coalition DC Fly -In Attachments: None City Administrator's Update Page 2 of 2 July 11, 2019 Agenda Page 107