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2016-07-05 CC Agenda Packet City of Albertville Council Agenda TUESDAY, July 5, 2016 City Council Chambers 7:00 p.m. 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. M:\Public Data\City Council\Council Agendas\2016 Agenda Packets\2016-07-05 CC Agenda.docx Meeting Date: July 5, 2016 1. Call to Order 2. Pledge of Allegiance – Roll Call 3. Recognitions – Presentations – Introductions 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 20, 2016 regular City Council meeting minutes as presented (pgs 4- 10) B. Authorize the Tuesday, July 5, 2016 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 11) C. Approve Resolution No. 2016-017 appointing additional Election Judges for the August 9, 2016 Primary Election and November 8, 2016 General Election (pgs 12-13) D. Approve the 2nd Quarter Budget to Actual General Fund Summary (pgs 14-15) E. Approve the Accounts Receivable Report (pgs 16-18) 7. Public Hearings – None 8. Department Business A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) Agenda Page 1 City of Albertville Council Agenda TUESDAY, July 5, 2016 Page 2 of 3 M:\Public Data\City Council\Council Agendas\2016 Agenda Packets\2016-07-05 CC Agenda.docx Meeting Date: July 5, 2016 B. Planning/Zoning 1). Request of Leuer Munsterteiger Properties to amend the City of Albertville Zoning Map changing the zoning of Outlot A, Heuring Meadows Addition from B-2, Limited Business to B-2A, Special Business District (pgs 19-27) (Motion to approve Ordinance No. 2016-06A changing the zoning on Outlot A, Heuring Meadows Addition from B-2, Limited Business to B-2A, Special Business District. OR Motion to approve Resolution No. 2016-018 denying the rezoning to B-2A and approving Ordinance No. 2016-06Bchanging the zoning on Outlot A, Heuring Meadows Addition from B-2, Limited Business to PUD/B-2A, Special Business District allowing all B-2A uses and standards excluding hospitality businesses and recreational businesses within the new district.) 2). Deed Covenants - Discussion (pgs 28-34) 3). Neighbor’s CUP Compliance – Update C. Fire 1). Shared Services Study Final Report (pgs 35-58) D. Public Works/Engineering 1). Ballfield Lighting of Central Park Field #3 (pgs 59-60) (Motion to direct staff to contract for field lighting through cooperative purchase with Musco Lighting for the lighting system and structural installation in the amount of $189,881, and to contract with ___(to be filled in at meeting)____, for the underground electrical system in the amount of $___(to be filled in at meeting)____, for a total project cost of $___(to be filled in at meeting)____.) 2). Main Avenue NE BNSF Railroad Contract (pgs 61-66) (Motion to approve the BNSF Crossing Surface Installation Agreement for the grade crossing at Main Avenue NE.) 3). 2017 Street Improvements (pgs 67-69) (Motion to approve Bolton and Menk, Inc. Proposal for Survey) E. Finance 1). Water Fund Presentation F. Legal 1). Towne Lakes 6th Addition Second Amendment to Developer’s Agreement (pgs 70-82) (Motion to approve the Second Amendment to Towne Lakes Planned Unit Development Agreement, Towne Lakes 6th Addition) 2). City Attorney’s Report (pgs 83-84) G. City Clerk – None H. Building – None Agenda Page 2 City of Albertville Council Agenda TUESDAY, July 5, 2016 Page 3 of 3 M:\Public Data\City Council\Council Agendas\2016 Agenda Packets\2016-07-05 CC Agenda.docx Meeting Date: July 5, 2016 I. Administration 1). City Administrator’s Update (pgs 85-86) 9. Announcements and/or Upcoming Meetings July 11 STMA Ice Arena Board, 6:00 p.m. July 12 Planning Commission, 7:00 p.m. July 13 Fire Advisory Committee, 6:00 p.m. July 14 Fire Business Meeting, 8:00 p.m. July 18 City Council, 7:00 p.m. July 25 Joint Powers Water Board, 6:00 p.m. Parks Committee, 8:00 p.m. August 1 City Council, 7:00 p.m. Budget Workshop, Immediately Following Regular Meeting August 8 STMA Ice Arena Board, 6:00 p.m. August 9 Primary Election Day, Polls Open 7:00 a.m. – 8:00 p.m. August 11 Planning Commission, 7:00 p.m. August 15 City Council, 7:00 p.m. Budget Workshop, Immediately Following Regular Meeting August 22 Joint Powers Water Board, 6:00 p.m. August 29 TBD, Joint Governance Meeting JULY AUGUST Su M Tu W Th F Sa Su M Tu W Th F Sa 1 2 CC 1 2 3 4 5 6 3 H 4 CC 5 6 7 8 9 7 Ice 8 ED 9 10 PC11 12 13 10 Ice 11 PC12 FAC 13 FB14 15 16 14 CC 15 16 17 18 19 20 17 CC 18 19 20 21 22 23 21 JP 22 23 24 25 26 27 24 JP25PK 26 27 28 29 30 28 JM29 30 31 31 10. Adjournment Agenda Page 3 Page 1 ALBERTVILLE CITY COUNCIL Monday, June 20, 2016 DRAFT MINUTES ALBERTVILLE CITY HALL 7:00 PM 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Acting Mayor Vetsch called the meeting to order at 7:01 p.m. 2. ROLL CALL Present: Acting Mayor Vetsch and Council members Hudson, Olson, and Sorensen Mayor Hendrickson arrived at 7:03 p.m. Absent: None Staff Present: City Administrator-PWD Adam Nafstad, City Attorney Mike Couri, City Planner Al Brixius, Fire Chief Eric Bullen, and City Clerk Kimberly Olson Others Present: Aaron Cocking, Samara Postuma, and Paul Turpin 3. RECOGNITIONS – PRESENTATIONS – INTRODUCTIONS A. CenterPoint Energy Community Partnership Grant Bullen accepted the grant on behalf of the Albertville Fire Department. The grant will be used to purchase three AED machines for the Public Works Department. One will be placed at the Public Works building and the other two will be placed in Public Works vehicles that are driven by Public Works employees, who also serve on the Fire Department, should they arrive first to a call. B. 2016-2017 Albertville Royalty This item was rescheduled to the July 18, 2016 City Council meeting. C. School District Boundary Working Group Aaron Cocking, member of Uniting STMA, was present to formally request Albertville’s participation in a small working group to discuss possible changes to school boundary lines. He stated they are looking for two elected representatives from the Elk River School Board, two elected representatives from STMA School Board, the mayors or council designee from both Albertville and Otsego, and two members from Uniting STMA. The goal is to get all interested parties in the same room to define issues and impacts for the community and to identify wants and needs of the community. He stated they would like to present their findings to each school board in October. Agenda Page 4 DRAFTCity Council Meeting Minutes Page 2 Regular Meeting of June 20, 2016 Hendrickson stated that based on the rest of the Council’s time commitment for other committees and boards, she is comfortable participating in this group. She stated that if they are going to tackle the issue, they need to look at impacts on all aspects of the community. Vetsch indicated there is a lot of land that is still undeveloped that should be considered. Cocking stated it is difficult to predict development, but they would like the group to work with the best evidence they can and have faith in finding a fair solution for all parties. Motioned by Hudson, seconded by Sorensen, to appoint Mayor Hendrickson to the Elk River- STMA School District Boundary Working Group. Ayes: Hendrickson, Hudson, Sorensen, and Vetsch. Nays: Olson. Absent: None. MOTION DECLARED CARRIED. 4. PUBLIC FORUM – (time reserved 5 minutes) There was no present at the forum. 5. AMENDMENTS TO THE AGENDA Motioned by Sorensen, seconded by Olson, to approve the Agenda as presented. Ayes: Hendrickson, Hudson, Olson, Sorensen, 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 6, 2016 regular City Council meeting minutes as presented B. Approve the June 6, 2016 City Council workshop meeting minutes as presented C. Authorize the Monday, June 20, 2016 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 D. Approve Resolution No. 2016-013 appointing Election Judges for the August 9, 2016 Primary Election and November 8, 2016 General Election E. Approve Resolution No. 2016-014 establishing an absentee ballot board F. Adopt Ordinance 2016-04 establishing a brewery taproom fee G. Adopt Resolution No. 2016-015 a resolution amending exhibits B and C of resolution 2016-002 setting fees for 2016 Motioned by Vetsch, seconded by Hudson, to approve the Consent Agenda as presented. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Agenda Page 5 DRAFTCity Council Meeting Minutes Page 3 Regular Meeting of June 20, 2016 7. PUBLIC HEARINGS – None 8. DEPARTMENT BUSINESS A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) Capital Improvement Task Force Hudson reported their role was better defined for them by the School Board. He stated the goal was to review improvements to be included in a $21 million bond referendum. $8 million of that amount is slated for the second sheet of ice and would be non-negotiable. They would have approximately $4-6 million to work with and the remainder of the $21 million would go to additional space for the Primary School and the High School. He stated that optional technology improvements themselves equal the $4-6 million they have to work with, so it will be difficult to determine the improvements to be included as they have almost $30 million of improvements to review. Hudson stated the task force is not in an enviable position to make those recommendations. Vetsch inquired if the group has looked at grants for technology projects from private businesses or other agencies. Hudson reported the group had not as far as he was aware and stated he will bring it up at their next task force meeting this week. Hendrickson inquired how the $21 million bond amount was determined and Hudson replied that it was a best guess as to what voters may accept for a bond referendum amount. Hudson stated the task force would recommend improvements that fit into the $21 million bond amount, but will also likely provide additional recommended improvements in case the bond amount is increased from $21 million. League of MN Cities Annual Conference Olson reported he attended the conference and there were several good ideas for improvements and savings that he would bring up during budget discussions. STMA Ice Arena Design Committee Nafstad reported the architect has the committee looking at a revised concept that shifted the location of the second sheet. A subgroup of the committee did a walk through tour of the ice arena. The architect felt that a $8.5 million budget may be difficult to meet. Planning Commission Hudson reported the Heuring Meadows property had a public hearing at the last Planning Commission meeting to consider a re-zoning request for the property from B2 to B2A. He stated there were some concerns from the commissioners, but the recommendation was to recommend approval of the rezoning to Council by a three to two vote. Two of the members did not like the concept that was presented to the Council earlier in the year. The other items at the meeting will be discussed tonight. Agenda Page 6 DRAFTCity Council Meeting Minutes Page 4 Regular Meeting of June 20, 2016 B. Planning/Zoning 1). Taco Bell Site and Building Plan, Conditional Use Permits for Joint Parking, Outdoor Dining, Drive-Through Service Lane, and Comprehensive Sign Plan Brixius reported that Border Food has submitted a development application for site and building plans for a Taco Bell for the property located at 6040 Labeaux Avenue NE, the current DJ’s car wash site. They are also applying for conditional use permits for joint parking, outdoor dining, drive-through, and comprehensive sign plan. The restaurant will replace the car wash on the site. DJ’s will still own the land, but Border Foods will have a land lease for the site. Brixius stated there are conditions the applicant will have to meet such as: • Enter into cross easement and parking easements agreement • Enter into an easement encroachment agreement • Provide striped parking and disability parking • Landscaping along CSAH 19 and the drive through service lane • No installation of pedestrian connection until crosswalks are installed Brixius stated there is some concern with clearance of delivery trucks on the site during business hours. Staff recommends night deliveries with a plan to be approved by the City. He stated that the building location was shifted to allow for more stacking in the drive through service and suggested the motion include that change. Hendrickson had concerns about pedestrian access and crossing at the intersection. Nafstad stated that all four legs of the intersection would need to be upgraded to ADA standards and would require getting a quote. He stated it is a bigger job that will also consist of electrical upgrades. The County would not participate in a cost share of the improvement and it would be a City responsibility. Dean Madson and Barbara Schneider from Border Foods were present at the meeting. Schneider reported they hope to start construction in August and to open by October 31. Motioned by Sorensen, seconded by Hudson, to approve Resolution No. 2016-016 approving the site and building plans for Taco Bell restaurant for property located at 6040 LaBeaux Avenue NE, along with conditional use permits for joint parking, outdoor dining, drive-through service lane, and comprehensive sign plan and for the construction and engineer plans be revised to reflect the shift in building location illustrated on engineer drawing titled TACO BELL ALBERTVILLE ALTERNATIVE LAYOUT 2016-06-16 BUILDING SHIFT TO THE EAST 7 CAR DRIVETHRU STACKING. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2). Development Application Requirements Brixius reported that the ordinance before the Council would require property owners submitting a development application to be current on property taxes and fees owed to the City. He stated that if property owners were not current on taxes and their development application incurred costs above and beyond the application fee and escrow, it would be difficult to collect those extra costs. Agenda Page 7 DRAFTCity Council Meeting Minutes Page 5 Regular Meeting of June 20, 2016 Brixius stated this zoning text amendment went before the Planning Commission hearing on June 14, 2016. Concerns raised at the meeting were the impact this would have on residential homes. Brixius reported that with other administrative (staff) decisions, the applicant has the chance to appeal. Council could consider an appeal process or exempting single family homes from this provision. The Planning Commission voted four to one to recommend approval of the zoning text amendment. Olson questioned what types of development applications a single family home owner could submit. Brixius replied it could be a variance, conditional use permit, etc. Hudson clarified the concerns from the Planning Commission member was also for the possibility of hindering undeveloped land from attracting a potential developer. Hudson stated he is fine with the amendment if an appeal process were added to the language. Hendrickson stated that tax payer dollars fund the staff time that is used to review these development applications, so it makes sense. Hudson stated that it should be up to the applicant to pay for their own development application rather than resident tax payers. Olson felt it also benefits the school districts and the County. Hendrickson inquired if other cities do this and Brixius said it is not unique to Albertville; several cities have this in their codes. Olson stated if they are not comfortable with the language, another alternative is to have the applicant pay the application fee and twice the escrow amount. Vetsch was concerned that if an appeal process was included in the language, an applicant may attempt to continue to appeal to Council numerous times. Sorensen stated that he would rather the applicants come to the Council than utilize staff time. Motioned by Olson, seconded by Hudson, to approve Ordinance 2016-05 amending Chapter 100.10 of the Albertville City Code relating to fee acceptable with the additional added language to read: Applicants may appeal to the City Council for an exception to this section. Applicants must demonstrate an acceptable reason as to why such delinquent amounts cannot be paid prior to submitting an application. The City Council may grant the exception at its discretion, and may impose increased escrow amounts or other requirements as a condition of granting such exception. Ayes: Hendrickson, Hudson, Olson, and Sorensen. Nays: Vetsch. Absent: None. MOTION DECLERED CARRIED. C. Public Works/Engineering 1). Resurfacing of Tennis Courts at Oakside Park Nafstad reported the tennis courts at Oakside Park need to be resurfaced and are overdue for that resurfacing. He stated they have received several complaints regarding the condition of the Oakside tennis courts. Sorensen inquired if there are other park improvements that may have a higher priority than the tennis courts. Vetsch stated the Parks Committee had discussed improvements several meetings ago and he asked that the item be discussed by the Parks Committee at a future meeting. The item was tabled until after the next Parks Committee meeting. Agenda Page 8 DRAFTCity Council Meeting Minutes Page 6 Regular Meeting of June 20, 2016 D. Fire 1). Purchase of Genesis Power Extrication Tool Bullen updated the Council on the Fire Department Open House during Friendly City Days and stated they had a very good turnout. Phase I of the memorial project at the Fire Hall is done. He reported three members of the Albertville Fire Department are graduating June 22 from the Elk River Fire Academy. Bullen reported that the extrication tool has been an item on the department’s long range plan. The unit will be portable and used in the new emergency response vehicle, which may arrive on scene prior to the fire trucks arriving. He reported they received a $2,000 grant from Wright County United Way and the remaining $7,445 will come from fire capital reserves. Motioned by Hudson, seconded by Sorensen, to authorize the purchase of a new Genesis Battery Powered Extrication Tool for the bid estimate amount of $9,445. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. E. City Clerk 1). Set Budget Workshops for August 1 and August 15, 2016 Motioned by Sorensen, seconded by Olson, to set budget workshops to immediately follow the regular City Council meetings on August 1, 2016 and August 15, 2016 in the City Council Chambers. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. F. Legal 1). Karston Cove 3rd Addition Couri reported that the Karston Cove 3rd Addition was approved and platted for 43 townhome unit prior to the 2008 housing market crash. The developer did not install any of the improvements and the City had to draw on the letter of credit to cover the cost of infrastructure installation and landscaping. In 2011, the property and rights were transferred to a new group. The City tried to negotiate a modification to the development agreement, but the talks fell through. Now the City must decide whether to enforce the terms of the development agreement by October 31, 2016. Couri recommended the City try to either extend the deadline of the development agreement or have the owner replat the properties and finish the punch list items. The last option would be to initiate Court action to enforce terms of the development agreement. Nafstad inquired if the deadline of the agreement was extended, could the City require an increase to the letter of credit. Couri replied that would be an option, especially to keep up with the price of inflation. Motioned by Vetsch, seconded by Sorensen, directing staff to move forward with Options 1 to work with the owner of Karston Cove Third Addition to install the required improvements or Option 2 to work with the owner of Karston Cove Third Addition to extend the term of the Developer’s Agreement and if neither of the first two options can be accomplished to pursue Option 3 to commence a Court Action seeking a Court order authorizing the City to enter upon the property and install the necessary improvements. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. Agenda Page 9 DRAFTCity Council Meeting Minutes Page 7 Regular Meeting of June 20, 2016 G. Finance – None H. Building – None I. Administration 1). City Administrator’s Update Nafstad reported the final fire shared services report will be included in the July 5, 2016 City Council agenda packet. Nafstad stated the July Planning Commission meeting will have a presentation on the fundamentals of planning and the roles and expectations for commissioners. Hudson excused himself from the meeting. Nafstad reported that road improvements have started on both CSAH 18 and CSAH 19. Sorensen stated he would like to receive more frequent email updates from the Sheriff’s Office in regards to activity in Albertville. 9. ANNOUNCEMENTS AND/OR UPCOMING MEETINGS June 27 Joint Powers Water Board, 6:00 p.m. June 29 Fire Advisory Committee, 6:00 p.m. July 4 City Offices Closed, Independence Day July 5 City Council, 7:00 p.m. July 11 STMA Ice Arena Board, 6:00 p.m. July 12 Planning Commission, 7:00 p.m. July 14 Fire Department Business Meeting, 8:00 p.m. July 18 City Council, 7:00 p.m. July 25 Joint Powers Water Board, 6:00 p.m. Parks Committee, 8:00 p.m. 10. ADJOURNMENT Motioned by Vetsch, seconded by Sorensen, to adjourn the meeting at 9:04 p.m. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Hudson. MOTION DECLARED CARRIED. Respectfully submitted, ___________________________________ Kimberly A. Olson, City Clerk Agenda Page 10 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 Finance Bills Report (RCA).doc Meeting Date: July 5, 2016 June 30, 2016 SUBJECT: CONSENT - FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Tuesday, July 5, 2016 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 Expenses/Vendors (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 determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) Agenda Page 11 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2016-017 A RESOLUTION APPOINTING ADDITIONAL ELECTION JUDGES FOR THE 2016 PRIMARY AND GENERAL ELECTIONS WHEREAS, the City Council is required by Minnesota State Statute 204B.21, Section 2, to officially approve the appointment of election judges; and WHEREAS, the Albertville City Council hereby adopts the judges listed on Exhibit A, hereto attached, as additional Election Judges for the August 9, 2016 Primary Election and the November 8, 2016 General Election, with the understanding that amendments may be necessary to the appointments in order to fill vacancies and meet party balance requirements, and NOW, THEREFORE, BE IT RESOLVED, the City Council appoints the individuals listed on Exhibit A, hereto attached, the 2016 Primary and General Election at a rate depending on qualifications. Exhibit A – Attached Adopted by the City Council of the City of Albertville this 5th day of July, 2016. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Agenda Page 12 City of Albertville Meeting of July 5, 2016 Resolution No. 2016-017 Page 2 Exhibit A Official Election Judges for 2016 Primary and General Elections Patrick Kelly Sandra Miller Jane O’Donnell Michael O’Donnell Noelle Vogt Diane Vossen Agenda Page 13 Mayor and Council Communication M:\Public Data\City Council\Council Packet Information\2016\070516\070516 2nd Quarter 2016 Budget to Actual RCA.docx Meeting Date: July 5, 2016 June 27, 2016 SUBJECT: CONSENT – FINANCE - 2ND QUARTER REPORT – UN-AUDITED 2nd QUARTER BUDGET TO ACTUAL: Attached is the 2nd Quarter 2016 un-audited General Fund summary of revenues and expenditures. Revenues and expenditures should be at 50%. This summary shows operating revenues are at 7.2% and operating expenses are at 22.2%. No action is required at this time. VARIANCES: Revenue: • Property Taxes and LGA - Not received until July and December • Police Aid – Not received until October • Fire Aid – Not received until October • Interest Earnings – Interest on Investments are not allocated until December Expenses: • General Government – using general fund monies not budgeted for sign (currently $24,000 paid ) • Elections – second half of 2016 • City Assessor – paid in full to Wright County for 2016 • City Engineer – consultant fees for work requests not project specific (school crossing, railroad crossing, traffic study) Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachment: 2016 Budget to Actual Agenda Page 14 2016 2016 Actual % of Budget 6/27/2016 Budget 31010 Current Ad Valorem Taxes 1,812,082 4,950 0.3% 32100 Business Licenses & Permits 27,000 26,060 96.5% 32110 Liquor Licenses 29,500 33,969 115.1% 32120 3.2 Liquor Licenses 75 30 40.0% 32150 Sign Permits 1,200 1,055 87.9% 32210 Building Permits 79,000 45,784 58.0% 32240 Animal Licenses 600 1,064 177.4% 33401 LGA Revenue Expected 90,462 - 0.0% 33405 Police Aid 30,000 - 0.0% 33406 Fire Aid 43,000 - 0.0% 33422 Other State Aid Grants 10,000 5,363 53.6% 34000 Charges for Services 2,000 1,683 84.1% 34005 Engineering As Built Fee 3,000 1,200 40.0% 34101 Leases - City Property 1,440 180 0.0% 34103 Zoning & Subdivision Fees 2,000 1,000 50.0% 34103 Plan Check Fee 38,000 21,218 55.8% 34106 Title Searches 2,000 2,060 103.0% 34113 Franchise Fee - Cable 72,000 37,822 52.5% 34202 Fire Protection Contract Charges 253,304 119,754 47.3% 34780 Rental Fees 10,000 6,370 63.7% 34950 Other Revenues 8,000 6,231 77.9% 34110 Arena 12,323 6,162 50.0% 34112 Franchise Fee - Electric 115,000 35,914 31.2% 36210 Interest Earnings 25,000 13 0.1% Total Revenues 2,666,986$ 357,880$ 13.4% 2016 2016 Actual % of Budget 6/27/2016 Budget 41000 General Government 30,000 33,379 111.3% 41100 Council 40,059 16,051 40.1% 41300 Combined Administrator/Engineer 89,858 36,207 40.3% 41400 City Clerk 98,256 46,387 47.2% 41440 Elections 15,500 22 0.1% 41500 Finance 111,757 49,738 44.5% 41550 City Assessor 29,870 28,616 95.8% 41600 City Attorney 40,000 7,238 18.1% 41700 City Engineer 20,000 17,158 85.8% 41800 Economic Development 5,000 2,675 53.5% 41910 Planning & Zoning 41,507 30,576 73.7% 41940 City Hall 131,696 50,510 38.4% 42000 Fire Department 442,808 209,124 47.2% 42110 Police 684,750 343,308 50.1% 42400 Building Inspection 159,144 75,839 47.7% 42700 Animal Control 5,000 2,766 55.3% 43100 Public Works - Streets 301,624 117,570 39.0% 45000 Culture & Recreation 69,809 27,144 38.9% 45100 Parks & Recreation 269,348 108,687 40.4% 43160 Electric street lights 81,000 32,209 39.8% Total Expenditures 2,666,986$ 1,235,202$ 46.3% 2016 2016 Actual % of Budget 6/27/2016 Budget 102 Capital Levy 937,465 - 0.0% Total Revenues 937,465$ -$ 0.0% 2016 2016 Actual % of Budget 6/27/2016 Budget 102 Capital Expenses 937,465 347,306 37.0% Total Expenditures 937,465$ 347,306$ 37.0% 2016 Council Update GENERAL FUND OPERATIONS General Fund Revenue: General Fund Expenditures 2016 Capital Fund Capital Fund 102 Revenues Capital Fund 102 Expenditures data$/Public Data / Finance / Budget/Qtr budget update.xlsx Agenda Page 15 Mayor and Council Communication M:\Public Data\City Council\Council Packet Information\2016\070516\AR Monthly Report RCA0716.doc Meeting Date: July 5, 2016 June 27, 2016 SUBJECT: CONSENT – FINANCE – ACCOUNTS RECEIVABLE REPORT ACCOUNTS RECEIVABLE: Total accounts receivable outstanding through June 27, 2016 is $25,812.86 The percentage of the total due based on the aging report is as follows: 0-30 days outstanding $ 4,201.73 16.28% 30-60 days outstanding $20,930.76 81.09% 60-90 days outstanding $ 559.01 2.17% Over 90 days outstanding $ 121.36 .47% The majority of the over 90 days are related to rental properties and will be assessed to the property in November if the amount is still outstanding. The majority of the outstanding receivables are rental license late fees. PRACTICES/POLICY CONSIDERATIONS: The Mayor and Council review monthly financial reports. FINANCIAL CONSIDERATIONS: There are no financial considerations at this time. 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 Agenda Page 16 Mayor and Council Communication – July 5, 2016 FINANCE – Accounts Receivable Report Page 2 of 3 M:\Public Data\City Council\Council Packet Information\2016\070516\AR Monthly Report RCA0716.doc Meeting Date: July 5, 2016 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over ALBERTVILLE MARKETPLACE LLC $106.88 $106.88 BAHL, RICHARD & PATTY $455.00 $455.00 BCD PROPERTIES, LLC $455.00 $455.00 BORDER FOODS $663.25 $663.25 CUMMINGS, DANIEL $455.00 $455.00 DARKENWALD HOLDING LIMITED $562.65 $4.65 $558.00 DAVIS, DANIEL $455.00 $455.00 FORMOSA PROPERTIES, LLC $910.00 $910.00 FREDRICKSON, NOLAN $455.00 $455.00 FRIENDLY CITY DAYS COMMITTEE $177.60 $177.60 FYCC $496.52 $126.38 $247.77 $1.01 $121.36 GREIG, MITCHELL $455.00 $455.00 GRUIDL, BRANDON & HOMUTH $455.00 $455.00 HERBST, CLINT & DIANE $455.00 $455.00 HOMES MN.COM $455.00 $455.00 HUGHES, TERRANCE & LYNDIA $106.88 $106.88 IH2 PROPERY ILLINOIS LP $910.00 $910.00 IH3 PROPERTY MINNESOTA LP $910.00 $910.00 JOHNSON, GUY & LOIS $455.00 $455.00 JUDKINS, VICTORIA REV TRUST $455.00 $455.00 KESSLER, NANCY $455.00 $455.00 KILPATRICK, CHRISTOPHER $455.00 $455.00 KLA PROPERTIES LLC $455.00 $455.00 LAGERQUIST, TERRY $455.00 $455.00 LOPEZ, RAINER $455.00 $455.00 MARCUS HOMES LLC $455.00 $455.00 MARKSON, TIMOTHY $455.00 $455.00 NAGORSKI, JULIA $455.00 $455.00 PRAUGHT, BETH $455.00 $455.00 SCANNELL PROPERTIES $1,220.50 $1,220.50 SMITH, DAVID & JULIE $455.00 $455.00 STEVENS, JUSTIN $455.00 $455.00 STMA UNITED SOCCER $5,908.58 $3,003.69 $2,904.89 STMA YOUTH BASEBALL $190.00 $190.00 SWANSON, FERN $455.00 $455.00 VAN ROY, TIFFANY $455.00 $455.00 VANDELAY PROPERTIES $455.00 $455.00 VANHOORIK, WILLIAM $455.00 $455.00 VOELLER, NEIL & SHANNON $455.00 $455.00 Agenda Page 17 Mayor and Council Communication – July 5, 2016 FINANCE – Accounts Receivable Report Page 3 of 3 M:\Public Data\City Council\Council Packet Information\2016\070516\AR Monthly Report RCA0716.doc Meeting Date: July 5, 2016 Vendor Amount Due 0-30 Days 30-60 days 60-90 days 90 days & Over WALSH, JUSTIN $455.00 $455.00 WILEY, WESTON $455.00 $455.00 ZACHMAN, LOWELL $455.00 $455.00 Total $25,812.86 $4,201.73 $20,930.76 $559.01 $121.36 Current 0-30 days $4,201.73 16.28% 30-60 days $20,930.76 81.09% 60-90 days $559.01 2.17% over 90 day $121.36 0.47% Agenda Page 18 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2016\070516\Leuer Munsterteiger RCA.docx Meeting Date: July 5, 2016 June 30, 2016 SUBJECT: PLANNING - REQUEST OF LEUER MUNSTERTEIGER PROPERTIES TO AMEND THE CITY OF ALBERTVILLE ZONING MAP CHANGING THE ZONING OF OUTLOT A, HEURING MEADOWS ADDITION FROM B-2, LIMITED BUSINESS TO B-2A, SPECIAL BUSINESS DISTRICT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Consider one of the following options: 1. Motion to approve Ordinance No. 2016-06A changing the zoning on Outlot A, Heuring Meadows Addition from B-2, Limited Business to B-2A, Special Business District. 2. Motion to approve Resolution No. 2016-018 denying the rezoning to B-2A and approving Ordinance No. 2016-06B changing the zoning on Outlot A, Heuring Meadows Addition from B-2, Limited Business to PUD/B-2A, Special Business District allowing all B-2A uses and standards excluding hospitality businesses and recreational businesses within the new district. BACKGROUND: Leuer Munsterteiger Properties has requested a change of zoning for Outlot A, Heuring Meadows Addition. They are seeking a change in zoning to expand the range of potential land uses to market the property for commercial use. They have claimed that the B-2 Zoning District is too limiting. They have, in the past, pursued a rezoning to allow a church on the site and have approached the City Council with a concept for having the western half of the property be developed as multiple family. The rezoning was reviewed in the June 1, 2016 planning report. The Planning Commission met on June 14, 2016, held a public hearing, and recommended approval of the change in zoning. Since the Planning Commission meeting, Council member Olson inquired as to whether the change in zoning may result in the City having some exposure to RLUIPA, Religious Land Use and Institutionalized Person Act. In staff discussions on this matter, City staff determined that the City had some RLUIPA exposure in that the B-2A District hospitality uses and recreational business use includes some assembly land uses that may be argued are similar to churches. As such, City staff has provided the aforementioned zoning options. Agenda Page 19 Mayor and Council Request for Action – July 5, 2016 Leuer Munsterteiger Rezoning Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2016\070516\Leuer Munsterteiger RCA.docx Meeting Date: July 5, 2016 KEY ISSUES: • The site is guided commercial in the City’s Proposed Land Range Land Use Plan and the City’s goal to promote commercial development along County Road 19. • The B-2A District is being sought to expand the range of commercial uses that may be allowed on the property. The B-2A District does not allow for a broader range of uses than the B-2 District, but also requires a greater level of performance standards related to building and site design. • The B-2A District does allow for some hospitality business and recreational business that includes assembly activities (i.e., theater, conference center) that will give the City some RLUIPA exposure. POLICY/PRACTICES CONSIDERATIONS: The Planning Commission recommended approval of the B-2A zoning for the proposed site. The City Council may approve the B-2A zoning or choose to rezone the property to PUD to allow the property owner to expand the range of land uses, but provide RLUIPA protection for the City. FINANCIAL CONSIDERATIONS: The change in zoning is intended to assist in the City’s ambition to promote commercial economic development along County Road 19. LEGAL CONSIDERATIONS: In conversation with the City Attorney, the City Council may act on the Planning Commission recommendation or choose to rezone the site PUD with B-2A uses and performance standards, excluding hospitality or recreational business from the district, without returning this to the Planning Commission. The resolution denies the original request and adopts the PUD District, thus closing out the current application. Responsible Person/Department: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: • June Planning Commission Report • Exhibit A – Ordinance Rezoning to B-2A District • Exhibit B – Resolution Denying B-2A and Approving PUD/B-2A District • Exhibit C – Ordinance Rezoning to PUD/B-2A District Agenda Page 20 NORTHWEST ASSOCIATED CONSULTANTS, INC. __________________________________________________________________ 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.957.1100 Website: www.nacplanning.com 4 PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: June 9, 2016 RE: Albertville – Leuer-Munsterteiger Properties Rezoning – Outlot A Heuring Meadows FILE NO: 163.06 – 16.03 BACKGROUND Leuer-Munsterteiger Properties is requesting consideration to change the zoning on Outlot A, Heuring Meadows from B-2, Limited Business to B-2A, Special Business District. They seek the change in zoning to expand the range of commercial uses that may be acceptable for the site. The current B-2 District uses are limited in scope and nature of development. The City’s B-2A District expands the range of land uses, but also establishes more stringent site and building design standards that provide protections for the nearby residential uses. Attached for reference: Exhibit A: Aerial Photo Exhibit B: Zoning Map ISSUES AND ANALYSIS Chapter 300, Section 300.1.F outlines the following criteria the Planning Commission and City Council must evaluate when considering a zoning map amendment: 1. The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. Comment: The Albertville Vision Study guides this site for future commercial land uses. The change in zoning will maintain this site for commercial Agenda Page 21 5 development. The B-2A zoning purpose and intent is to provide for high quality, limited retail and service businesses. In formulating the B-2A District, the City established more stringent site and building design standards to reflect the quality development called for in the Vision Study. The change in zoning will expand the range of commercial businesses, but will also establish performance standard protections to protect the adjoining residential neighborhoods. This is consistent with the goals and policies of the Albertville Vision Study. 2. The proposed use is or will be compatible with present and future land uses of the area. Comment: The site is bordered by the following land uses: Direction Land Use Zoning North Cottages of Albertville / Single Family R-5 and B-2 South 53rd Avenue / Commercial B-2 East County Road 19 / Commercial B-2 West Single Family Neighborhood R-1 The original Outlot A and the current zoning pattern was created with the Heuring Meadows Subdivision in 1989. At that time, the City Council created a 500 foot corridor along both sides of County Road 19 between I-94 and 50th Street. This land use pattern has been maintained through the current zoning. In the change of zoning from B-2 to B-2A, the range of uses has expanded, however, the City has created design standards to protect the adjoining residential neighborhood. The design standards that will apply will include standards on outdoor lighting, landscape screening, parking lot landscaping, and higher architectural requirements. 3. The proposed use conforms with all performance standards contained herein. Comment: The applicant has presented a concept plan for a combination of commercial and multiple family residential to the City Council. To date, the applicant has not progressed with their concept plan. The requested rezoning encompasses the entire outlot. The applicant has not presented any development plans under the B-2A District zoning. Any future development plans must demonstrate compliance with City zoning performance standards. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. Comment: The commercial land use for this area has been established since 1989. The change in zoning will not change the land use. In this regard, no additional impact is anticipated with the change of use. Agenda Page 22 6 5. The proposed use can be accommodated with existing public services and will not overburden the City’s service capacity. Comment: Utilities in the area have been planned for commercial development of this site. Future development will be within the capacity of available utilities. 6. Traffic generation by the proposed use is within the capabilities of streets serving the property. Comment: As development occurs on this parcel, traffic generation and movements will require study to determine the type and extent of transportation improvements required to address both site access and egress and dispersal of traffic onto County Road 19. CONCLUSION AND RECOMMENDATION The applicant has stated that the current B-2, Limited Business District is too restrictive in its range of uses to attract commercial development interests. The B-2A District expands the range of uses and provides additional performance standards to protect the adjoining residential neighborhoods. Based on the findings outlined in this report, we recommend approval of the zoning map amendment changing the zoning on Outlot A Heuring Meadows to B-2A, Special Business District. c: Kim Olson Meaghan Becker Mike Couri Paul Heins Leuer-Munsterteiger Properties, 4290 Wild Meadows Drive, Medina, MN 55340 Agenda Page 23 EXHIBIT A CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2016-06A AN ORDINANCE AMENDING THE CITY OF ALBERTVILLE OFFICIAL ZONING MAP RELATING TO OUTLOT A, HEURING MEADOWS ADDITION CHANGING THE ZONING FROM B-2, LIMITED BUSINESS DISTRICT TO B-2A, SPECIAL BUSINESS DISTRICT The City Council of the City of Albertville, Minnesota ordains: SECTION 1. The Albertville Zoning Map is hereby amended changing the zoning for the property legally described as Outlot A, Heuring Meadows Addition from B-2, Limited Business District to B-2A, Special Business District. This amendment shall be in full force and effective immediately following its passage and publication. Adopted by the Albertville City Council this 5th day of July 2016. ___________________________________ Jillian Hendrickson, Mayor ATTEST: ______________________________ Kimberly A. Olson, City Clerk Agenda Page 24 Page 1 EXHIBIT B CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2016-018 RESOLUTION DENYING THE REQUEST OF LEUER MUNSTERTEIGER PROPERTIES REQUEST TO REZONE OUTLOT A, HEURING MEADOWS ADDITION FROM B-2, LIMITED BUSINESS DISTRICT TO B-2A, SPECIAL BUSINESS DISTRICT AND APPROVING ORDINANCE NO. 2016-____ REZONING OUTLOT A, HEURING MEADOWS ADDITION TO PUD, PLANNED UNIT DEVELOPMENT/B-2A, SPECIAL BUSINESS DISTRICT ALLOWING B-2A DISTRICT USES AND PERFORMANCE STANDARDS BUT PROHIBITING HOSPITALITY AND RECREATIONAL BUSINESSES WITHIN THIS ZONING DISTRICT WHEREAS, Leuer Munsterteiger Properties has filed an application for a zoning map amendment changing the zoning on Outlot A, Heuring Meadows Addition from B-2, Limited Business District to B-2A, Special Business District; and WHEREAS, City staff has reviewed the application and prepared a planning report dated June 1, 2016; and WHEREAS, the Albertville Planning Commission met on June 14, 2016 and held a public hearing to consider the application, planning report, and take public testimony; and WHEREAS, upon closing the public hearing, the Albertville Planning Commission recommended that the Albertville City Council approve the rezoning request on a vote of 3 to 2; and WHEREAS, the Albertville City Council has received the Planning Commission recommendation, the June 1, 2016 planning report, and raised issues regarding the extent of uses in a B-2A District and whether all these uses are consistent with the City’s land use and Comprehensive Plan goals for this area of the City; and WHEREAS, the City Council wants to allow some expansion of uses for the site, but wishes to prohibit B-2A uses that may not be appropriate; and NOW, THEREFORE, BE IT RESOLVED that the Albertville City Council denies the request to rezone Outlot A, Heuring Meadows Addition to B-2A, Special Business District and approves a change of zoning to PUD/B-2A District per Ordinance No. 2016-____. Agenda Page 25 City of Albertville Resolution No. 2016-____ Meeting of July 5, 2016 Page 2 EXHIBIT B Adopted by the City Council of the City of Albertville this 5th day of July, 2016. Jillian Hendrickson, Mayor ATTEST: Kimberly A. Olson, City Clerk Agenda Page 26 EXHIBIT C CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 2016-06B AN ORDINANCE AMENDING THE CITY OF ALBERTVILLE OFFICIAL ZONING MAP RELATING TO OUTLOT A, HEURING MEADOWS ADDITION CHANGING THE ZONING FROM B-2, LIMITED BUSINESS DISTRICT TO PUD, PLANNED UNIT DEVELOPMENT/B-2A, SPECIAL BUSINESS DISTRICT The City Council of the City of Albertville, Minnesota ordains: SECTION 1. The Albertville Zoning Map is hereby amended changing the zoning for the property legally described as Outlot A, Heuring Meadows Addition from B-2, Limited Business District to PUD, Planned Unit Development/B-2A, Special Business District with the following restriction: Within this PUD, uses and performance standards of the B-2A District shall be applied to the property with the following prohibited uses as defined in Section 200.2 of the Albertville Zoning Code: Prohibited Uses: Hospitality Businesses; Recreational Businesses This amendment shall be in full force and effective immediately following its passage and publication. Adopted by the Albertville City Council this th day of July 2016. ___________________________________ Jillian Hendrickson, Mayor ATTEST: ______________________________ Kimberly A. Olson, City Clerk Agenda Page 27 Mayor and Council Communication M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 Accessory Buildings-Covenants.docx Meeting Date: July 5, 2016 June 30, 2016 SUBJECT: PLANNING - ACCESSORY BUILDINGS/DEED COVENANTS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the and give direction to staff on the following matter: Retain or repeal Section 1000.4, Accessory Buildings, Uses and Equipment, provision 1000.4.B.5 which reads: 5. Design Standards/Covenants: These accessory building performance standards are applicable for all single-family lots in the city, provided, however that these standards shall not be permitted where these design standards will supersede design standards or covenants that have been established as part of an approved residential planned unit development. Property owners shall demonstrate compliance with approved covenants/design standards with the submission of a building permit for an accessory building. BACKGROUND: This provision is unique to Albertville in that most communities do not enforce deed restrictions or covenants. This provision was adopted in response to controlling accessory buildings in planned unit developments where neighborhood restriction of the number and size of accessory buildings were integral to the plat design and appearance (i.e., Cedar Creek along the golf course, Towne Lakes, etc.). In the past, the City was receiving outbuilding requests that were contrary to the established architectural restrictions putting the homeowners association or individual property owners at odds with the City. The homeowners association or property owner would seek enforcement through civil legal means. In 2015, we had a request from the property owner at 4924 Kassel Avenue NE to construct a second outbuilding. This lot is within the Albert Villas 6th Addition which has covenants that limit lots to one outbuilding that may not exceed 120 square feet in area. The property lot is 27,321 square feet in area and abuts Swamp Lake. While the proposed building may have met City zoning standards, the building was prohibited based on Section 1000.4.B.5 above. A second request this June was for a second garage for property located at 10141 49th Street NE. This lot is in Albert Villas 4th Addition. Review of this subdivision reveals that the developer of the 4th Addition did not place the same building restrictions on the 4th Addition as they did in the 6th Addition. This lot is 1.99 acres in size and is eligible for an oversized second accessory building by administrative permit. KEY ISSUES: • The comparison of these two lots within the Albert Villas subdivision demonstrates an inequity in the treatment of properties within the same subdivision. Agenda Page 28 Mayor and Council Communication – July 5, 2016 Accessory Buildings / Deed Covenants Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 Accessory Buildings-Covenants.docx Meeting Date: July 5, 2016 • Other than this zoning provision, the City does not enforce any other deed restrictions or covenants. • Past City treatments contrary to established covenants has presented conflicts between neighbors and between the City and homeowners associations. • In some instances such as along the golf course, the City has not wanted the proliferation of large accessory buildings in the rear yards. This restriction is through the Cedar Creek PUD deed restrictions and Section 1000.5.B.5. • In purchasing a property, a new owner agrees to the terms of the deed restrictions or covenants as a condition of purchase. • Both of the properties in question are larger than standard R-1A lots and have the lot area to accommodate the second oversized outbuilding. POLICY/PRACTICES CONSIDERATIONS: City staff seeks direction from Council as to whether this portion of the accessory building regulations should be amended. FINANCIAL CONSIDERATIONS: None. LEGAL CONSIDERATIONS: Any change in zoning text will need to be processed through the public hearing procedures. Responsible Person/Department: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Exhibit A – Aerial Photo 4924 Kassel Avenue NE Exhibit B – Aerial Photo 10141 49th Street NE Exhibit C – Aerial Photo Albert Villas Exhibit D – Aerial Photo Cedar Creek Exhibit E – Aerial Photo Towne Lakes Agenda Page 29 Agenda Page 30 Agenda Page 31 Agenda Page 32 Agenda Page 33 Agenda Page 34 M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 FD Shared Services Study Final Report RCA.doc Meeting Date: July 5, 2016 Mayor and Council Request for Action _____________________________________________________________________________ July 5, 2016 SUBJECT: FIRE DEPARTMENT- SHARED SERVICES GRANT STUDY FINAL REPORT RECOMMENDATION: It is respectfully requested that the Mayor and City Council consider the following: BACKGROUND: In November 2015, the City Council authorized the Albertville Fire Department to pursue obtaining a State Fire Marshal Division Grant through the Fire and Rescue Shared Services Feasibility Study Grant Program for the purpose of exploring the possibility of forming a Joint Powers Agreement for fire service with the City of Otsego. As part of this initial grant application process, the Cities of Albertville and Otsego both provided letters of support for the grant application. In January 2016, the Fire Department was awarded a grant award of $23,000 for a Shared Services Study by an outside consultant. Springsted Incorporated provided a proposal to evaluate Shared Fire Services as outlined in the grant application and award. In February 2016, both the Cities of Albertville and Otsego authorized and signed a Memorandum of Understanding to proceed with the grant proposal project as provided by Springsted Inc. Springsted Inc. separately met with Staff and members of the Fire Committee from both Cities while gathering initial information for a potential framework of a Joint Powers Agreement and then development of a Draft Report. Springsted Inc. then met with both City Councils separately for input before developing the Final Report. The Final Report was submitted to the State Fire Marshal’s Office on June 23, 2016 to fulfil the requirement that the study be completed by June 30. The Joint Fire Committee met on June 29, 2016 to discuss the Final Report. KEY ISSUES: • The Final Report lays out a potential outline to follow if a Joint Powers Agreement is desired for shared fire services. • The grant award and resulting Final Report was seen by the Fire Committee as a very valuable tool and useful in saving Staff, Council, and Committee time. • There is much agreement between the two Cities on the potential outline, but there are still several areas that would require much discussion to come to an agreement. • The City of Albertville is not tied to any agreements by the grant process or the Final Report. • The Shared Services Grant Program has been finalized by submittal of the Final Report to the State Fire Marshal’s Office. Agenda Page 35 Mayor and Council Request for Action – July 5, 2016 Shared Services Study Grant Final Report Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 FD Shared Services Study Final Report RCA.doc Meeting Date: July 5, 2016 Responsible Person/Department: Fire Chief Bullen, Fire Department Submitted Through: Adam Nafstad, City Administrator-PWD Supplemental Information: Final Report Attached Agenda Page 36 Final Report Cities of Albertville and Otsego, Minnesota Shared Fire Services Study June 17, 2016 Agenda Page 37 1. INTRODUCTION........................................................................ 2 2. BACKGROUND......................................................................... 3 3. CURRENT FIRE SERVICES ........................................................ 4 City of Albertville Fire Department ............................................ 4 City of Otsego Fire Protection .................................................. 5 4. JOINT POWERS AGREEMENT .................................................... 7 Process .............................................................................. 7 Initial Matrix of Terms ............................................................ 7 Value of the City of Albertville’s Fire Equipment ........................... 9 Value of City of Albertville’s Fire Station ................................... 10 Joint Powers Agreement – Second Matrix of Proposed Terms ...... 10 Joint Powers Agreement – Proposed Terms ............................. 14 Alternatives for Shared Services ............................................ 16 5. CONCLUSIONS AND RECOMMENDATIONS................................ 18 Springsted provides high quality, independent financial and management advisory services to public and non-profit organizations, and works with them in the long-term process of building their communities on a fiscally sound and well-managed basis. Table of Contents Agenda Page 38 LETTER OF TRANSMITTAL June 17, 2016 Re: Cities of Albertville and Otsego, Minnesota Shared Fire Services Study Dear Mr. Nafstad: Springsted Incorporated was retained to assist the Cities of Albertville and Otsego with a Shared Fire Services Study. The overall objective of the study was to evaluate the possibility of a joint powers agreement for shared fire services between the two cities. The consultant team’s findings are based on our meetings with each City, an analysis of information provided to us, information drawn from a variety of pertinent documents, reports, and internet resources, and our experience in assisting local governments develop joint powers agreements. The potential terms of a joint powers agreement contained in this report for consideration by the two Cities are based upon our understanding of the terms acceptable to each City and represents what we believe, in our professional judgment, to be in the long-term and best interest of both Cities. The consultant team expresses our thanks to you and to the staff in both the City of Albertville and the City of Otsego for the cooperation and support provided throughout this engagement. Springsted Incorporated hopes that it will be our privilege to serve City of Albertville and the City of Otsego again in the future. I want to thank you for giving us the opportunity to work with you on this study. I hope our services exceeded your expectations. Respectfully submitted, Nicholas R. Dragisich, Executive Vice President Manager of Consulting Services Agenda Page 39 Introduction 2 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study 1. Introduction The City of Albertville Fire Department applied for and was awarded a grant from the State Fire Marshall’s office to contract for a Shared Services Study by an outside consultant to study and evaluate the possibility of a joint powers agreement between the Cities of Albertville and Otsego for a joint Fire Department. The grant specifically required the Shared Services Study to address options for both cities who each identified difficult issues needed to be addressed as part of a joint powers agreement (JPA). These issues were identified to include: • Determining value of existing assets, including an appraisal of the City of Albertville Fire Department property, vehicles, and equipment • Determine the buy-in formulas • The number of voting members/board representation • A process for establishing the annual operating and capital budgets • Dispute resolution • Timing/location of new facilities • Otsego Station location • Ownership of assets, etc. The grant also required a feasibility study be performed by the consultant which was to include ways to increase efficiency, effectiveness and/or cost saving methods through voluntary and cooperative shared services and include possible alternatives for the entities to share fire and rescue services. Agenda Page 40 Background 3 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study 2. Background The City of Albertville Fire Department has been providing fire and rescue services to the City of Otsego for approximately thirty years through a contract for services. As the two cities continue to grow and develop, the working relationship they have built has led them to explore the possibility of entering into a JPA that would create a shared Fire Department with representation from each City. Springsted Incorporated was retained to assist the two cities in the evaluation of a joint powers agreement for a joint Fire Department. The scope of our work included identifying issues that will need to be addressed as part of any JPA and developing options for each city to consider in forming the JPA. These issues include: • Determining value of the City of Albertville’s existing assets: o Fire Department property o Vehicles o Equipment • Buy- in formulas • Board representation and voting members • Budget process • Dispute resolution • Timing/location of new facilities • Ownership of assets • Terms of Dissolution of the JPA The timing and location of the Otsego Fire Station was removed from the scope of services by the City of Otsego because it would have only recommended a location for a Fire Station within the fire district covered by the Albertville Fire Department. The Otsego City Council believed it is important to include the entire city in any Fire Station Location study to ensure the best locations for the entire City are determined. Agenda Page 41 Current Fire Services 4 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study 3. Current Fire Services City of Albertville Fire Department The City of Albertville Fire Department is a well-established department that services the City of Albertville and portions of the City of Otsego. The Department includes thirty paid-on-call firefighters and three reserve firefighters. Each member is trained and state certified to a minimum requirement of Firefighter I and II and Minnesota State Emergency Medical Services Regulatory Board Certified as First Responder or EMT. The Fire Hall, built in 1999, has 5,580 square feet of garage space for the storage of fire equipment and 2,160 square feet of office and training space. City of Albertville Fire Hall The Fire Department’s major equipment includes: • 2011 F250 pickup • 2016 Chevrolet Tahoe Command Vehicle • Gator ATV • 1999 IHC 4900 Ambulance Rescue Truck #5389 • 2002 Spartan Ladder Truck • 1995 IHC Tender • 2006 Spartan Midship Pumper Agenda Page 42 Current Fire Services 5 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study In addition, they have the necessary turn-out gear, hoses, air packs and other equipment needed for their firefighting and life-saving operations. City of Otsego Fire Protection The City of Otsego contracts for fire protection services from three adjoining cities including Albertville, Elk River, and Rogers. The City of Elk River currently provides fire protection to the eastern portion of City which includes the largest area of the City currently developed. The City of Rogers provides fire protection to a small section in the southeast corner of the City. The City of Albertville provides fire protection to the western portion of the City containing some areas with development and large undeveloped areas. The areas served by each of these adjoining cities is shown on the map provided on the following page. Agenda Page 43 Current Fire Services 6 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study City of Otsego, Minnesota Fire Districts Agenda Page 44 Joint Powers Agreement 7 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study 4. Joint Powers Agreement Process The process of developing the terms of a mutually acceptable JPA involved a meetings with each City individually and a joint meeting with the administrative staff of the two cities. The first meeting was with the consultant team and the City of Otsego on March 22, 2016. A similar meeting was held on April 4, 2016 that included the consultant team and the City of Albertville. A joint meeting with the administrative staff of each City and the consultant team was held on May 16, 2016. The terms that were reviewed and discussed included: • Board representation • Board authority • Voting • Budget process • Buy in of the City of Albertville’s current assets o Fire Department equipment o Fire Department property • Timing/location of new Fire Station • Dispute resolution • Support functions o Accounting o Payroll o Human resources o Insurances o Purchasing o Communications o Legal o Annual audit o Other • Cost allocation formula o Operating o Capital • Dissolution The initial meetings with each City individually provided an opportunity for the City Councils and their administrative staff to discuss and consider their position on, concerns with, and acceptability of each these terms. The consultant team offered possible solutions to the above list of terms for inclusion in the JPA based on their experience and research of similar JPA’s for fire services. Initial Matrix of Terms After meeting with each City individually, a matrix was developed to show the areas of agreement and disagreement on the potential terms of a JPA. The matrix from the first round of individual meetings showed some disagreements in the following areas: • Board representation • Board authority • Operating cost formula • Dissolution The specific differences in these four areas as well as areas of agreement are shown in the matrix on the following page. The areas of disagreement are shaded. Agenda Page 45 Joint Powers Agreement 8 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study JPA Term Otsego Albertville Board Representation • 7 total (2 from each City, 1 based on tax base, 1 based on population,1 impartial) • Equal representation from each City • 3/3 would have a majority of each council on board and 1 impartial to break ties Board Authority • Budgets approved by each City Council • Board hires and fires employees • Board develops C.I.P. • Board sets preliminary budget • Goes to City Council for comments • Annual increases of 3% or 5-year average of change in American City and County Municipal Cost Index whichever is higher would need no City approval • Board hires and fires employees • Board develops C.I.P. Fire Stations • Each City builds and owns its own Fire Station • Each City builds and owns its own Fire Station Fire Department Assets • Been in cooperative arrangements for 30 year. • How much of Otsego's contributions were used to pay for assets in the past? • City to review how much of Otsego's contributions have gone into assets Appraisal of the City of Albertville’s Equipment • Acceptable as a basis for payment • Acceptable as a basis for payment Dispute Resolution • Mediation • Mediation Payment for Support Functions • OK as part of cost allocation formula • OK as part of cost allocation formula • City to review costs to include all into formula Operating Cost Formula • Market value not so good • Tax capacity not as good • Lots of agricultural property which is important in cost sharing formula because it requires little or no fire protection • Should value of tax exempt land be included in cost sharing formula? • Based on tax capacity • Ag land already has reduced tax capacity - Ag property classified as 2a tax capacity rate is 1.00% • Commercial-Industrial classified as 3a tax capacity rate is 1.5% of first $150,000 and 2.00% over $150,000 Capital Asset Costs • Equal cost sharing • Based on tax capacity same as operating budget Dissolution • Assets divided on costs paid • Minimum 2 year notice • Assets divided on costs paid • Minimum 5 year notice • Special legislation to convert into fire district if desired or if irreconcilable differences between cities Agenda Page 46 Joint Powers Agreement 9 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study Value of the City of Albertville’s Fire Equipment Valuing the assets of the Albertville Fire Department presented a challenge because we were unable to locate an experienced appraiser of fire equipment in the State of Minnesota. Some of the appraisers we contacted indicated they value the equipment based on photographs. One appraiser we contacted, Paul Batista, who is the owner of Fire Trucks Plus in Rancho Cucamonga, California, advised us that a reasonable value could be estimated using a depreciation curve he developed and which has been published on the FireRescue 1 website. We also researched other depreciation curves for fire equipment including those developed by the United States Bureau of Economic Analysis. All of these depreciation curves provided similar values based on estimated asset lives of approximately 20 years. We decided to use the depreciation curve developed and recommended by Paul Batista to estimate the value of the Albertville fire equipment excluding the 2011 F250 pickup and the 2016 Chevrolet Tahoe Command Vehicle. The depreciation curve is shown in the chart below. The value of the 2011 Ford F250 pickup and the 2016 Chevrolet Tahoe Command Vehicle were determined based on the Kelly’s Blue Book private party values. The total estimated value of the equipment was estimated to be $477,732 based on information related to the cost of each unit provided by the City of Albertville. The table below shows the estimated value for each vehicle and in total. 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Value as a Percent of CostYears In Service Depreciation Rate Agenda Page 47 Joint Powers Agreement 10 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study The values determined above only include the vehicle chassis and do not include the equipment and appurtenances that were subsequently added to the chassis. Value of City of Albertville’s Fire Station The initial scope of work included valuing the City of Albertville’s Fire Station to determine what portion the City of Otsego should pay the City of Albertville for this asset. However, in our initial meeting with the City of Otsego they indicated they would prefer to build and pay the total cost for a new fire station in the City of Otsego for the joint Fire Department and not pay for a portion of the City of Albertville’s Fire Station. Their reasoning was that if each City owned its own fire station it would enable them to have the option of combining it with other City-owned facilities like a community center. In addition, in the event of dissolution of the joint fire department, each City would have its own fire station and these assets would not need to be divided. The timing and location of the Otsego Fire Station was removed from the scope of services by the City of Otsego because it would have only recommended a location for a Fire Station within the fire district covered by the Albertville Fire Department. The Otsego City Council believed it is important to include the entire city in any Fire Station Location study to ensure the best locations for the entire City are determined. The City of Albertville was agreeable to this concept. Joint Powers Agreement - Second Matrix of Proposed Terms Subsequent discussions both within each City and between the Cities attempted to resolve these differences with the proposed terms of a JPA. However, after this second round of discussion there remained some differences in the agreeable terms as shown in the matrix on the following pages. Equipment Value at end of 2015 2011 Ford F250 20,800$ 2016 Chevrolet Tahoe Command Vehicle 41,850$ Gator ATV 8,262$ 1999 IHC 4900 Ambulance Rescue Truck #5389 45,374$ 2002 Spartan Ladder Truck 160,912$ 1995 IHC Tender 9,595$ 2006 Spartan Midship Pumper 190,940$ Total 477,732$ Agenda Page 48 Joint Powers Agreement 11 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study Revised Matrix of JPA Terms JPA Term Otsego Albertville Board Representation • 4 with equal representation from each City • An impartial mediator to break ties • Either 4 or 6 with equal representation from each City • An impartial mediator to break ties Board Authority • Hiring and firing employees • Developing capital improvement program • Developing preliminary budgets for consideration by the two City Councils • Developing operational policies and other policies as needed • Hiring and firing employees • Developing capital improvement program • Developing preliminary budgets for consideration by the two City Councils • Developing operational policies and other policies as needed Budget Impasse • In the event a budget cannot be agreed upon by the two City Councils, the operating costs at the most recent approved budget level and funding for previously purchased but not fully paid for capital equipment of the Fire Department will continue to be funded under the current formula until a new budget is approved by both City Councils. • In the event a budget cannot be agreed upon by the two City Councils, the Fire Department will continue to be funded under the current formula at a level that results in no reduction in the current level fire protection services until a new budget is approved by both City Councils. Fire Stations • Each City builds and owns its own Fire Station(s). Each City is responsible for the operating costs and capital costs of their Fire Station(s). Until Otsego builds its first Fire Station, the operating cost of the Albertville Fire Station will be an operating cost of the Joint Fire Department with the costs shared under the operating cost formula. • The Joint Fire Board will have input into the location of the Otsego Fire Station, but the final decision will be made by the City of Otsego. • Each City builds and owns its own Fire Station. Operating costs are paid by the Joint Fire Department. • Capital Costs (repairs) associated with the Fire Hall would be the responsibility of each individual City, not the Joint Fire Department • The location of the Otsego Fire Station will be approved by the Joint Fire Board. Agenda Page 49 Joint Powers Agreement 12 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study Revised Matrix of JPA Terms (continued) Fire Department Assets • The City of Otsego will compensate the City of Albertville for value of the current assets of the Fire Department based on the current funding formula less any amounts previously paid for by the City of Otsego. The assets will be valued based on original costs less depreciation using the schedule prepared by Springsted. The City of Otsego capital contributions will be valued at their depreciated level using the same formula to be consistent with the value of City of Albertville’s contributions. • The City of Otsego will compensate the City of Albertville for value of the current assets of the Fire Department based on the current funding formula less any amounts previously paid for by the City of Otsego. The assets will be valued based on original costs less depreciation using the schedule prepared by Springsted. The City of Otsego capital contributions will be valued at their depreciated level using the same formula to be consistent with the value of City of Albertville’s contributions. Appraisal of the City of Albertville’s Equipment • Acceptable as a basis for payment • Acceptable as a basis for payment Dispute Resolution • Any disputes that cannot be resolved between the Cities will be submitted to mediation. The Cities will select a mediator acceptable to both Cities. In the event they cannot agree, each City will present the names of three potential mediators. From these, five names shall be selected by lot. Each City will then alternately strike a name until only one name remains. This person will be the mediator. The City to strike the first name will be selected by the flip of a coin. • Any disputes that cannot be resolved between the Cities will be submitted to mediation. The Cities will select a mediator acceptable to both Cities. In the event they cannot agree, each City will present the names of three potential mediators. From these, five names shall be selected by lot. Each City will then alternately strike a name until only one name remains. This person will be the mediator. The City to strike the first name will be selected by the flip of a coin. Payment for Support Functions • OK as part of cost allocation formula • OK as part of cost allocation formula Operating Cost Formula • Costs will be shared based on the total taxable tax capacity in the two Cities with each City’s share determined by their portion of the combined total taxable tax capacity. • Costs will be shared based on the total taxable tax capacity in the two Cities with each City’s share determined by their portion of the combined total taxable tax capacity. Capital Asset Costs • Based on tax capacity same as operating budget • Based on tax capacity same as operating budget Agenda Page 50 Joint Powers Agreement 13 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study Revised Matrix of JPA Terms (continued) Dissolution • A five-year notice will be required for either City to withdraw from the Joint Powers Agreement. • Assets will be divided based on the amount each City contributed to their acquisition. However, the division of assets will not result in either City having a dysfunctional Fire Department. • A five-year notice will be required for either City to withdraw from the Joint Powers Agreement. • Assets will be divided based on the amount each City contributed to their acquisition. However, the division of assets will not result in either City having a dysfunctional Fire Department. Amending JPA • The JPA can only be amended by mutual agreement of the two Cities. • The JPA can only be amended by mutual agreement of the two Cities. Fire District Areas • The Fire Department Service areas in each City covered by the JPA cannot be reduced. Agenda Page 51 Joint Powers Agreement 14 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study Joint Powers Agreement - Proposed Terms Additional discussions were held with each City in an attempt to resolve the differences with the proposed terms of a JPA. Discussions with the City of Albertville took place on June 6, 2016 and discussion with the City of Otsego were held on June 13,2016. The proposed terms are listed below with areas of disagreement noted. Board Representation There remains a small difference of opinion on board representation. The Albertville City Council supports a board with either four or six members with equal representation from each city. The Otsego City Council prefers to limit the board to four members with equal numbers appointed from each City. Both agree that an impartial mediator would be selected to break tie votes. Board Authority The board will have full authority to oversee the operations of the Joint Fire Department including: • Hiring and firing employees • Developing capital improvement program • Developing preliminary budget for consideration by the two City Councils • Developing operational policies and other policies as needed The City Councils differ in how to continue operating the Joint Fire Department in the event a budget cannot be agreed upon by the two City Councils. The Albertville City Council would prefer that the Fire Department would continue to be funded under the current formula at a level that results in no reduction in the current level fire protection services until a new budget is approved by both City Councils. The Otsego City Council would prefer that operating costs at the most recent approved budget level and funding for previously purchased but not fully paid for capital equipment of the Fire Department will continue to be funded under the current formula until a new budget is approved by both City Councils. Fire Stations Some level of difference remains in how to fund and operate fire stations. The Albertville City Council’s position is that each City builds and owns its own Fire Station. Operating costs would be paid by the Joint Fire Department, but capital costs (repairs) associated with the Fire Hall would be the responsibility of each individual City, not the Joint Fire Department. They also believe the location of the new Fire Station in the City of Otsego should be approved by the Joint Fire Board. The Otsego City Council position is that each City builds and owns its own Fire Station(s). Each City is responsible for the operating costs and capital costs of their Fire Station(s). Until the City of Otsego builds its first Fire Station, the operating cost of the City of Albertville Fire Station will be an operating cost of the Joint Fire Department with the costs shared under the operating cost formula. They support the Joint Fire Board having input into the location of the City of Otsego Fire Station, but the final decision will be made by the City of Otsego. Agenda Page 52 Joint Powers Agreement 15 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study City of Albertville Fire Department Assets The City of Otsego will compensate the City of Albertville for value of the current assets of the Fire Department based on the current funding formula less any amounts previously paid for by the City of Otsego. The assets will be valued based on original costs less depreciation using the schedule prepared by Springsted. The City of Otsego capital contributions will be valued at their depreciated level using the same formula to be consistent with the value of City of Albertville’s contributions. Dispute Resolution Any disputes that cannot be resolved between the Cities will be submitted to mediation. The Cities will select a mediator acceptable to both Cities. In the event they cannot agree, each City will present the names of three potential mediators. From these, five names shall be selected by lot. Each City will then alternately strike a name until only one name remains. This person will be the mediator. The City to strike the first name will be selected by the flip of a coin. Payment for Support Functions The City that provides support functions to the Joint Fire Department will be compensated for these support services. A cost allocation of these services will be made to include all direct and indirect costs associated with providing the support. The costs will be part of the Joint Fire Department annual budget. Initially, the City of Albertville will provide these support services. Operating Cost Formula Costs will be shared based on the total taxable tax capacity in the two Cities with each City’s share determined by their portion of the combined total taxable tax capacity. Otsego’s share of cost: City of Otsego’s Total taxable tax capacity (Otsego’s total taxable tax capacity + Albertville’s total taxable tax capacity) Albertville’s share of cost: City of Albertville’s Total taxable tax capacity (Otsego’s total taxable tax capacity + Albertville’s total taxable tax capacity) Capital Asset Costs The cost of new capital assets will be shared based on taxable tax capacity using the operating cost formula. Amending the JPA The JPA can only be amended by mutual agreement of the two Cities. Agenda Page 53 Joint Powers Agreement 16 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study Fire District Areas The Albertville City Council supports the concept that the Fire Department service areas in each City covered by the JPA cannot be reduced. The Otsego City Council is not supportive of this restriction. Dissolution A five-year notice will be required for either City to withdraw from the Joint Powers Agreement. Assets will be divided based on the amount each City contributed to their acquisition; however, the division of assets will not result in either City having a dysfunctional Fire Department. Alternatives for Shared Services The State grant received by the City of Albertville requires that the study include possible alternatives for the cities to share fire and rescue services. The alternatives that exist would include alternatives other than a joint powers agreement between the two cities as well as alternative ways each City could provide fire services. Alternatives to shared fire services between the two Cities would include either the current contractual arrangement or some variation that would define how the contract would change as the two communities grow and develop. The continuation of the current contractual arrangement does not appear to be the most favorable for the City of Otsego because it does not allow them any control or direct input into the management and operation of the Fire Department. The JPA they are currently contemplating gives the City of Otsego a say directly into the management and operation of the Fire Department. This is particularly important based on the projected growth of their City. Another alternative would have the City of Otsego start its own Fire Department and enter a mutual aid agreement with the City of Albertville which would provide for back-up and enable them each to have a somewhat smaller department as they could draw on each other’s resources when needed. This alternative would also allow them to share some equipment reducing each of their capital costs. However, this alternative would be more costly than either the current contractual arrangement or the JPA as it would require duplicating administrative and equipment costs and would eliminate the benefit of a larger pool of potential paid-on-call firefighters. A third alternative would be for the two Cities to have special legislation enacted creating a fire district under statute. That would provide for shared fire services similar to the JPA being contemplated. However, it would also remove the elected City Councils from control of the fire services as control would pass to the directors of the fire district. This concept was not viewed favorable by the two cities as a starting point. The City of Otsego could consider contracting for all its fire services from either the City of Elk River or the City of Rogers since they both provide fire protection to portions of Otsego. This option would leave Albertville to bear the entire cost of its Fire Department which would place a greater financial burden on its taxpayers. In addition, it could reduce the available pool of potential paid-on-call firefighters as those in Otsego would be more likely to enlist with the Fire Department that protects their City. A contract with Elk River or Rogers would also not allow Otsego any direct input into the Fire Department management and operations. That could only come about through a JPA with Agenda Page 54 Joint Powers Agreement 17 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study one of them. In either case, Albertville is left orphaned and would incur significant cost increases to operate its Fire Department. Albertville and Otsego have been working together on fire services for over 30 years. The proposed JPA provides a framework for long-term benefits for both Cities that other alternatives simply cannot match, at least in the near term. A joint powers agreement between the two Cities will strengthen the fire protection their citizens receive and will also enable them to consider expansion of these services through future arrangement with neighboring fire departments to create an even greater regional fire service if that is determined to be desirable and economically beneficial. Agenda Page 55 Conclusions and Recommendations 18 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study 5. Conclusions and Recommendations This study was undertaken to assist the Cities of Albertville and Otsego in evaluating a potential JPA for shared fire services. The intended result was an outline of the major terms of a JPA that would be acceptable to both Cities and that would provide a framework for the drafting of the legal document. However, after several meetings there remains some differences in the position of each city on some of the terms. The study following conclusions were found as a result of this study. 1. The Albertville Fire Department has been providing fire and rescue services to the City of Otsego for approximately thirty years through a contract for services. The two cities have a well-established working relationship that simplifies the transition into a JPA. 2. The City of Albertville Fire Department is a well-established department that services the City of Albertville and portions of the City of Otsego. 3. The total estimated value of the City of Albertville’s Fire vehicles was estimated to be $477,732. This value is for the chassis and does not include any equipment or appurtenances added to the chassis. 4. The City of Otsego will build and pay the total cost for a new fire station in the City of Otsego for the joint Fire Department and not pay for a portion of the City of Albertville’s Fire Station. The terms of a potential JPA which are agreeable to each city include: 1. City of Albertville Fire Department Assets - The City of Otsego will compensate the City of Albertville for value of the current assets (other than the Fire Station) of the Fire Department based on the current funding formula less any amounts previously paid for by the City of Otsego. The assets will be valued based on original costs less depreciation using the schedule prepared by Springsted. The City of Otsego’s capital contributions will be valued at their depreciated level using the same formula to be consistent with the value of City of Albertville’s contributions. 2. Dispute Resolution - Any disputes that cannot be resolved between the Cities will be subject to mediation. The Cities will select a mediator acceptable to both Cities. In the event they cannot agree, each City will present the names of three potential mediators. From these, five names shall be selected by lot. Each City will then alternately strike a name until only one name remains. This person will be the mediator. The City to strike the first name will be selected by the flip of a coin. 3. Payment for Support Functions - The City that provides support functions to the Joint Fire Department will be compensated for these Agenda Page 56 Conclusions and Recommendations 19 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study support services. A cost allocation of these services will be made to include all direct and indirect costs associated with providing the support. The costs will be part of the Joint Fire Department annual budget. Initially, the City of Albertville with provide support services. 4. Operating Cost Formula - Operating costs will be shared based on the total taxable tax capacity in the two Cities with each City’s share determined by their portion of the combined total taxable tax capacity. 5. Capital Asset Cost - The cost of new capital assets will be shared based on taxable tax capacity using the operating cost formula. 6. Dissolution - A five-year notice will be required for either City to withdraw from the Joint Powers Agreement. Assets will be divided based on the amount each City contributed to their acquisition. 7. Amending the JPA - The JPA can only be amended by mutual agreement of the two Cities. The terms of a potential JPA where some disagreement remains include: 1. Board Representation - There remains a small difference of opinion on board representation. a. The Albertville City Council supports a board with either four or six members with equal representation from each city. b. The Otsego City Council prefers to limit the board to four members with equal numbers appointed from each City. Both agree that an impartial mediator would be selected to break tie votes. 2. Board Authority – there is agreement on the authority of the board as it related to overseeing the operations of the Joint Fire Department. The board will have full authority to oversee the operations of the Fire Department including: • Hiring and firing employees • Developing capital improvement program • Developing preliminary budget for consideration by the two City Councils • Developing operational policies and other policies as needed The City Councils differ in how to continue operating the Joint Fire Department in the event a budget cannot be agreed upon by the two City Councils. a. The Albertville City Council would prefer that the Joint Fire Department would continue to be funded under the current formula at a level that results in no reduction in the current level of fire protection services until a new budget is approved by both City Councils. b. The Otsego City Council would prefer that the Joint Fire Department operating costs at the most recent approved budget level and funding for previously purchased but not fully paid for capital equipment of the Fire Department would continue to be Agenda Page 57 Conclusions and Recommendations 20 Cities of Albertville and Otsego, Minnesota - Shared Fire Services Study funded under the current formula until a new budget is approved by both City Councils. 3. Fire Stations – Some level of difference remains in how to fund and operate fire stations. a. The Albertville City Council’s position is that each City builds and owns its own Fire Station. Operating costs would be paid by the Joint Fire Department, but capital costs (repairs) associated with the Fire Hall would be the responsibility of each individual City, not the Joint Fire Department. They also believe the location of the new Fire Station in the City of Otsego should be approved by the Joint Fire Board. b. The Otsego City Council position is that each City builds and owns its own Fire Station(s). Each City is responsible for the operating costs and capital costs of their Fire Station(s). Until Otsego builds its first Fire Station, the operating cost of the Albertville Fire Station will be an operating cost of the Joint Fire Department with the costs shared under the operating cost formula. They support the Joint Fire Board having input into the location of the City of Otsego Fire Station, but the final decision will be made by the City of Otsego. 4. Fire Department Service Areas a. The Albertville City Council’s supports the position that Fire Department service areas in each City covered by the JPA cannot be reduced. b. The Otsego City Council supports Fire Department service areas could be modified in the future. The Cities of Albertville and Otsego have been working together on fire services for over 30 years. The proposed joint powers agreement will provide a framework for long-term benefit for both Cities that other alternatives simply cannot match, at least in the near term. While there are still some terms that the City’s differ on, these can be resolved in the development of the JPA. The conclusions and recommendations contained in this report are based, in part, on information provided to Springsted Incorporated by the Cities of Albertville and Otsego. Agenda Page 58 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2016\070516\Ballfield Lighting RCA.doc Meeting Date: July 5, 2016 June 30, 2016 SUBJECT: PUBLIC WORKS - BASEBALL FIELD LIGHTING, CENTRAL PARK FIELD #3 RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Direct staff to contract for field lighting through cooperative purchase with Musco Lighting for the lighting system and structural installation in the amount of $189,881, and to contract with ___(to be filled in at meeting)____, for the underground electrical system in the amount of $___(to be filled in at meeting)____, for a total project cost of $___(to be filled in at meeting)____. INFORMATION: It is proposed that Albertville’s field #3 in Central Park be improved to include lighting. The recommended lighting is the Musco Light-Structure Green system with eight (8) poles to light the infield to 50 footcandles and the outfield to 30 footcandles. The light- structures consist of a pre-stressed concrete base, galvanized steel pole, remote electrical component enclosure (ballasts, capacitors, fusing, and disconnect) located at a 10' height on the pole, pole wire harness, and pole top luminaire assembly with 1500 watt metal halide lighting. It is proposed the city purchase the lighting system (poles, luminaires, etc.) thru a cooperative purchase program and contract with a local electrician for the underground wiring. Staff has solicited proposals from three local electricians and will have quotes in-hand prior to the meeting. KEY ISSUES: • Currently Albertville does not have a baseball field with lights. • Lighting the field allows for more games to be played at Central Park and helps with the community’s field shortage issues. • The Albertville town team, the Villains, would be able to play in Albertville. • The Albertville Lions have pledged $25,000 over 5-years towards the project. • The Youth Baseball Association has pledged $6,000 over 3-years towards the project. • Installation would take place this fall. • The Parks Committee has recommended the lighting of field #3. FINANCIAL CONSIDERATIONS: Funding available for this project includes Park Dedication (approx. $170,000) and the undesignated capital reserves set aside in 2015 (approx. $300,000). LEGAL CONSIDERATIONS: The City has the authority to make capital purchases on behalf of the City. Agenda Page 59 Mayor and Council Request for Action – July 5, 2016 Baseball Field Lighting Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2016\070516\Ballfield Lighting RCA.doc Meeting Date: July 5, 2016 Submitted through: Adam Nafstad, City Administrator-PWD On-File: Musco Lighting Data Sheets and Design Summaries Cooperative Purchase Contract Electrician Quotes Agenda Page 60 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2016\070516\Main Avenue RR Xing RCA.doc Meeting Date July 5, 2016 June 30, 2016 SUBJECT: MAIN AVENUE NE RAILROAD CROSSING – BNSF AGREEMENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the BNSF Crossing Surface Installation Agreement for the grade crossing at Main Avenue NE. INFORMATION: Attached is the crossing Agreement prepared by the BNSF Railway and required for the City requested improvements. Under this agreement, the Railway will remove the existing timber crossing and install a new concrete crossing and bill the City accordingly. The City will be required to complete all restoration and other improvement items, as identified on the city plan set. The BNSF agreement was received earlier this week and I have requested quotes from local contractors for the other project items. I hope to have the quotes by for the meeting on the July 5. KEY ISSUES: • The crossing is in need of improvement. • This is project is consistent with City’s 5-year Street CIP • The crossing agreement requires the City to close Main Avenue NE while the Railroad is performing their work. • The schedule for the project will be largely determined by the Railroad. • Quotes to complete the street and sidewalk improvements will be presented at the meeting. FINANCIAL CONSIDERATIONS: I estimate the total construction cost to be approximately $120,000, of which approximately $70,000 will be paid to the Railroad. Capital reserves designated for transportation and budgeted pavement funds will be used to fund the project. LEGAL CONSIDERATIONS: The City has the authority to make capital purchases on behalf of the City. Submitted through: Adam Nafstad, City Administrator-PWD On-File: Main Avenue NE Railroad Crossing plan set Agenda Page 61 Agenda Page 62 Agenda Page 63 Agenda Page 64 AUTHORITY FOR EXPENDITURE ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ LOCATION : ALBERTVILLE LINE SEGMENT : 202 AFE NUMBER : PLANITEM NUMBER : 227918000 MILEPOST : 26.8 RFA NUMBER : 5923116 PROPERTY OF : BNSF RAILWAY COMPANY DIVISION : TC CPAR NUMBER : C0000009 OPERATED BY : BNSF RAILWAY COMPANY SUBDIVISION : MONTICELLO BUDGET YEAR : 2016 JOINT FACILITY : CITY OF ALBERTVILLE TRACK TYPE : S BUDGET CLASS : 6 % BILLABLE (+/-) : 80.0 TAX STATE : MN REPORTING OFFICE : 718 SPONSOR : VP ENGINEERING CENTER/ROLLUP : S3551 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ PURPOSE, JUSTIFICATION AND DESCRIPTION PIP - TCE DIV MONTICELLO SUB LS 202 MP 26.8 - DOT # 095667W - 80% BILLABLE TO CITY OF ALBERTVILLE - COMPLETE SURFACE REHAB OF MAIN AVE NE. 96' CONCRETE SURFACE PRIMARY FUNDING SOURCE IS FHWA ** BUY AMERICA(N) APPLIES ** PLAN ITEM LINE SEG BEG MP END MP TRK NBR BEGIN STATION END STATION PROJECT TYPE BUD YEAR 227918000 202 26.8 26.8 S ALBERTVILLE ALBERTVILLE PUBLIC IMPROVEMENT PROJECT 2016 CASH CAPITAL NONCASH CAPITAL OPERATING EXP REMOVAL COSTS BILLABLE TOTALS LABOR COSTS 3,434 0 3,514 0 27,794 34,742 MATERIAL COSTS 9,082 0 0 0 36,326 45,408 OTHER COSTS 1,390 0 35 0 5,697 7,122 TOTALS 13,906 0 3,549 0 69,817 87,272 SYSTEM MAINTENANCE AND PLANNING PRINTED ON: 06/21/2016 ESTIMATE REF. NUMBER: 5923116 ESTIMATED BY: Savard COSTING DATE: 06/21/2016 PRINTED BY: Savard Page 1 of 2Agenda Page 65 - ***** MAINTAIN PROPRIETARY CONFIDENTIALITY ***** BNSF RAILWAY COMPANY FHPM ESTIMATE FOR CITY OF ALBERTVILLE LOCATION ALBERTVILLE DETAILS OF ESTIMATE PLAN ITEM : 227918000 VERSION : 4 PURPOSE, JUSTIFICATION AND DESCRIPTION PIP - TCE DIV MONTICELLO SUB LS 202 MP 26.8 - DOT # 095667W - 80% BILLABLE TO CITY OF ALBERTVILLE COMPLETE SURFACE REHAB OF MAIN AVE NE. 96' CONCRETE SURFACE REQUESTED BY PATRICK PHILIP HOSKINS 7/22/15 REVISION REQUESTED BY PATRICK HOSKINS 5/13/16 REVISION REQUESTED BY KRISTOPHER SWANSON 6/20/16 PRIMARY FUNDING SOURCE IS FHWA ** BUY AMERICA(N) APPLIES ** DESCRIPTION QUANTITY U/M COST TOTAL $ ********** LABOR ********** PLACE FIELD WELDS - CAP 64.0 MH 1,933 REMOVE PUBLIC CROSSING 152.0 MH 4,329 REPLACE PUBLIC CROSSING - TOTAL REHAB 96.0 MH 2,734 UNLOAD CROSSING MATERIAL - PUBLIC - CAP 48.0 MH 1,367 PAYROLL ASSOCIATED COSTS 6,804 DA OVERHEADS 10,061 EQUIPMENT EXPENSES 5,776 INSURANCE EXPENSES 1,738 TOTAL LABOR COST 34,742 34,742 ************* MATERIAL ************* TRACK PANEL, 136 STANDARD RAIL, 80 FT - 10 FT TIES-2.0 EA **23,214 SPIKE, TBR SCREW 3/4"X13", F/ROAD XING 216.0 EA **486 WELDKIT, GENERIC FOR ALL RAIL WEIGHTS 8.0 KT **543 CONC 136 08-SEC WITH FILLER FOR 10' WOOD TIES **96.0 FT **15,312 CONCRETE XING RAMP AND PANEL RESTRAINT,1.0 ST **310 MATERIAL HANDLING 1,991 USE TAX 3,053 OFFLINE TRANSPORTATION 499 TOTAL MATERIAL COST 45,408 45,408 ********** OTHER ********** TOTAL OTHER ITEMS COST 0 0 PROJECT SUBTOTAL 80,150 CONTINGENCIES 6,257 BILL PREPARATION FEE 865 GROSS PROJECT COST 87,272 LESS COST PAID BY BNSF 17,455 TOTAL BILLABLE COST 69,817 Page 2 of 2Agenda Page 66 N:\Proposals\Albertville\2017 Street Improvements\Albt 2017 Street Project - Survey and Public Involvement.docx June 16, 2016 Adam Nafstad, P.E. City Administrator/City Engineer/Public Works Director City of Albertville 5959 Main Avenue NE Albertville, MN 55301 RE: Proposal for 2017 Street Improvements – Topographical Survey and Public Involvement Dear Mr. Nafstad: The 2017 Street Improvements will continue the city’s street program and correct deficiencies in the existing trail system within the project area. Bolton & Menk, Inc. proposes to perform the scope of services as described on the attached sheet on an hourly basis for a fee of $11,374.00. If this proposal is acceptable, please contact me via email or telephone to confirm. Project Area • 57th Street NE – 58th Street NE to Lebeaux Avenue NE • 56th Street NE – Kahler Drive NE to Kalenda Drive NE • Kahler Drive NE – Karston Drive NE to 58th Street NE • Karston Avenue NE – Kahler Drive NE to 500’ east of Kahler Drive NE • 58th Street NE – 57th Street NE to Kalland Avenue NE • Kalland Avenue NE – 58th Street NE to 250’ south of Kalland Drive NE Project Understanding Roadways in the project area have met their service life expectancy and are ready for maintenance and/or reconstruction. Several options for reconstruction will be considered, overlay of the roadway, mill and overlay, or full depth reclamation. Roadways within the project area will be evaluated to determine the most suitable type of reconstruction. After evaluation the type of reconstruction will be determined for the roadways. Several of the roadways have 8-foot bituminous trails abutting the back of curb. The existing trails are cracked and deteriorating, they also have steeper than desired cross slopes. During this project the bituminous trails will be removed and replaced with a concrete walk. A 3-foot boulevard with a 5-foot concrete walk will be installed in place of the bituminous trail. Driveways within the trail area will be reconstructed to allow for the concrete walk. Topographical survey is needed for these areas. Agenda Page 67 Adam Nafstad June 16, 2016 Page 2 N:\Proposals\Albertville\2017 Street Improvements\Albt 2017 Street Project - Survey and Public Involvement.docx Topographical Survey Topographical survey of the project area will include the roadways and curbs. In the areas of trail replacement survey will be shot at the following locations: • Shooting edges and center of driveways to the garage door finished floor of the existing homes • Yards, landscaping, and trees within 20’ of the existing trail • Private utilities within the area (Gopher State One call to be made and coordinated) • City utilities within the area, water main, storm sewer, sanitary sewer Public Involvement The city will host a public meeting to deliver the project information to the home owners and the public. We will prepare preliminary information, project layouts, and exhibits for the public meeting. If requested we will be available to attend the public meeting to assist in answering questions and working with the public. In continued service to Albertville, we are excited at the opportunity to complete the survey and assist in the public involvement for the 2017 Street Improvements project for you. I will personally serve as your Project Manager and lead client contact on this project. Please contact me at 612-756-3440 or codyho@bolton-menk.com if you have any questions regarding our proposal. Respectfully submitted, BOLTON & MENK, INC. Cody Holmes, P.E. Project Manager Agenda Page 68 2017 STREET IMPROVEMENTSSURVEY PROPOSAL / BUDGETPROJECT:2017 Street ImprovementsPROJECT NO.:SERVICE DESCRIPTION:Topo Survey and Public InvolvementDATE:6/16/2016PREPARED BY:Cody HolmesCody H. Karl A. Cody S. Nate S. --- ---$125.00 $113.00 $98.00 $128.00 $105.00 $120.00Line No. NotesTasks(Hours) (Hours) (Hours) (Hours) (Hours) (Hours) (Hours)Survey1Set Control1212$1,440.002Topographical Survey and Boundary4848$5,760.003Survey Drafting22426$2,776.000002246086$9,976.00Public Involvement1Public Involvement64212$1,398.0064200012$1,398.00TOTAL ESTIMATED CONTRACT AMOUNT6422246098$11,374.00% OF TOTAL HOURS6.1%4.1%2.0%2.0%24.5%61.2%100.0%COST PRICE ANALYSIS WORKSHEETTotalTOTAL LABOR COSTLicensed Land SurveyorSurvey CrewEITSenior TechProject SurveyorPublic Involvement Subtotal CHARGE RATES ==========>Project ManagerSTAFF CLASSIFICATION ==========> PROPOSAL / BUDGETSurvey SubtotalAlbt 2017 Topo and Public Involvement Budget.xlsx1Agenda Page 69 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 Towne Lakes 6th RCA.docx Meeting Date: July 5, 2016 June 30, 2016 SUBJECT: LEGAL - SECOND AMENDMENT TO TOWNE LAKES 6TH ADDITION DEVELOPER’S AGREEMENT RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the Second Amendment to Towne Lakes Planned Unit Development Agreement, Towne Lakes 6th Addition. BACKGROUND: In 2005, the City and Contractor Property Developers Company (“CPDC”) entered into a development agreement for the development of Towne Lakes 6th Addition. CPDC installed some of the infrastructure before the housing bust hit and all work was stopped. The bank eventually foreclosed on the property and sold the property to the Kilbur Development Group in 2010. The City and Kilbur entered into an amendment to the Developer’s Agreement which required Kilbur to complete some of the more immediate infrastructure improvements and allowed others to be delayed until residential units are constructed or until 2020. Kilbur has completed all obligations that are required to be completed at this time, and remains in compliance with the Development Agreement. When Kilbur purchased the property it made it clear that it was merely an investment group which intended on holding the property for a period of time until the market recovered and the property could be sold to a developer that would finish the development and construct the homes. Kilbur now proposes to sell the property to a buyer that will complete the development. At this point City Staff is recommending that the City enter into the attached Second Amendment to the Development Agreement which would essentially transfer Kilbur’s development obligations to the new buyer. In addition, upon purchasing the land, the new buyer would dedicate the necessary right of way needed for the construction of Large Avenue and agree to pay half of the costs of constructing Large Avenue at such time as either the Towne Lakes 7th plat is approved or Hunters Pass 3rd Addition is approved. KEY ISSUES: • Other than the changes relating to the dedication of Large Avenue and its future construction, the proposed action merely substitutes a new owner for the Kilbur Development group under the existing developer’s agreement and its subsequent amendments. • The existing letter of credit will either be maintained or replaced in the same amount by the buyer. • The buyer intends on commencing construction on the Towne Lakes 6th Addition plat as soon as possible. Agenda Page 70 Mayor and Council Request for Action – July 5, 2016 Second Amendment To Towne Lakes 6th Addition Developer’s Agreement Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2016\070516\2016-07-05 Towne Lakes 6th RCA.docx Meeting Date: July 5, 2016 POLICY/PRACTICES CONSIDERATIONS: The City has previously allowed owners of unfinished developments to transfer their obligations under developer’s agreements to buyers of the property, provided the City’s security (an acceptable letter of credit) remains in place. FINANCIAL CONSIDERATIONS: The change in ownership will not have any financial impact upon the City. LEGAL CONSIDERATIONS: Except for the dedication of Large Avenue and the agreement to pay half its costs, the transfer of ownership and this Second Amendment will not alter the existing terms of the Developer’s Agreement as amended by the Kilbur amendment. Responsible Person/Department: Mike Couri, City Attorney Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Second amendment to Towne Lakes 6th Addition Developer’s Agreement Agenda Page 71 1 CITY OF ALBERTVILLE SECOND AMENDMENT TO PLANNED UNIT DEVELOPMENT AGREEMENT TOWNE LAKES 6TH ADDITION WHEREAS, the City of Albertville (“City”), a Minnesota municipal corporation, and Contractor Property Developers Company (“Developer”), entered into an Agreement titled “Planned Unit Development Agreement Towne Lakes 6th Addition” (“Developer’s Agreement”) dated September 7, 2005 and recorded as document number 1003634 at the Wright County Recorder’s Office, Wright County, Minnesota; and WHEREAS, Kilber Section 36, LLC (“Kilber”), a North Dakota limited liability company, purchased the property subject to the Developer’s Agreement; and WHEREAS, Kilber and the City executed an Amendment to Planned Unit Development Agreement, Town Lakes 6th Addition (“First Amendment”); and WHEREAS, Kilber has since sold the property that this the subject to the Developer’s Agreement and the First Amendment to _________________; and WHEREAS, ______________ acknowledges that it is bound by the Developer’s Agreement and the First Amendment by virtue of its ownership of the property subject to the Developer’s Agreement and all references hereafter in this Amendment, the First Amendment and in the Developer’s Agreement to “Developer” shall mean ___________________; NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in consideration of each party’s promises and considerations herein set forth, as follows: 1. Paragraph 3A of the Developer’s Agreement is modified to read as follows: A. On or before September 30, 2016, the Developer shall construct those Municipal Improvements located on Said Plat as detailed in the Plans and Specifications for Towne Lakes Sixth Addition, as prepared by Westwood Professional Services dated February 8, 2005 and revised September 22, 2005 and on file with the City Clerk, including completion of all items listed on the attached Exhibit A, except that completion of the following items may be delayed as follows: i. Sidewalks shall be installed consistent with the timeline set out in this subparagraph: a. On the south Side of 68th Street, between Linwood Drive and Wright County State Aid Highway No. 19 (the Shoppes at Towne Lakes 2 plat), the sidewalk shall be installed by Developer when a building is constructed on the lot adjacent to 68th street where there is no sidewalk currently. Agenda Page 72 2 b. On the north Side of 68th Street, between Linwood Drive and Wright County State Aid Highway No. 19 (Outlot A to Said Plat), the sidewalk shall be installed by Developer when a building is constructed on the lot adjacent to 68th street, and such sidewalk shall extend from the western edge of said lot east to the intersection of 68th Street and Linwood Drive. c. On the west side of Linwood Drive north of 68th Street, the sidewalk shall be installed by Developer when a building is constructed on a lot adjacent to Linwood Drive, and such sidewalk shall extend from 70th Street to 68th Street. d. On the east side of Linwood Drive, north of 68th Street, the sidewalk shall be installed by Developer adjacent to the townhomes abutting Linwood Drive prior to the issuance of an occupancy permit for such townhomes, and such sidewalk shall extend south to the intersection of Linwood Drive and 68th Street. e. On the west side of Lancaster Way, north of 68th Street, the sidewalk shall be installed by Developer adjacent to the townhomes abutting Lancaster Way prior to the issuance of an occupancy permit for such townhomes, and such sidewalk shall extend south to the intersection of Lancaster Way and 68th Street. f. Notwithstanding the foregoing, all sidewalks shall be installed no later than the earlier of 1) the time of issuance of the final occupancy permit for the last residence to be constructed on Said Plat or 2) four years from the date of this Agreement. ii. Final finish grading of lots shall be performed prior to issuance of an occupancy permit, but Developer shall ensure that the Subject Property drains in a manner consistent with the grading and drainage plan attached to the Developer’s Agreement and shall immediately correct any areas of the Subject Property that do not drain properly. All such improvements shall be constructed at Developer’s expense according to the standards adopted by the City, along with all items required by the City Engineer. The City Engineer will promptly inspect the Municipal Improvements upon their completion and, when satisfactorily completed, recommend acceptance of such improvements by the City Council. The City Council shall not unreasonably withhold acceptance of such completed Municipal Improvements. 2. Paragraphs 6A and 6B of the Developer’s Agreement is hereby modified to read as follows: A. Developer will provide the City with an irrevocable letter of credit as security that the obligations of the Developer under this contract shall be performed. Said letter of credit or surety shall be in the amount of $________________. Said letter of Agenda Page 73 3 credit or surety must meet the approval of the City attorney as to form and issuing bank. B. The City may draw on said letter of credit or surety to complete work not performed by Developer (including but not limited to on- and off-site improvements, Municipal Improvements described above, landscaping, erosion control, and other such measures), to pay liens on property to be dedicated to the City, to reimburse itself for costs incurred in the drafting, execution, administration or enforcement of this Agreement, to repair or correct deficiencies or other problems which occur to the Municipal Improvements during the warranty period, or to otherwise fulfill the obligations of Developer under this agreement. 3. Paragraphs 7A and 7B of the Developer’s Agreement is hereby modified to read as follows: A. Periodically, as portions of the Municipal Improvements and landscaping are completed, and when it is reasonably prudent, the Developer may request of the City that the surety be proportionately reduced for that portion of the Municipal Improvements and landscaping which have been fully completed and payment made therefor. All such decisions shall be at the discretion of the City Council. The City's cost for processing reduction request(s) shall be billed to the Developer. Such cost shall be paid to the City within thirty (30) days of the date of mailing of the billing. The City may at all times retain the letter of credit in an amount sufficient to complete the unfinished Municipal Improvements and landscaping required by the Developer’s Agreement. B. The Developer may request of the City a reduction or release of any surety as follows: i. When another acceptable letter of credit or surety is furnished to the City to replace a prior letter of credit or surety. ii. When all or a portion of the Municipal Improvements or landscaping have been installed, the letter of credit or surety may be reduced pursuant to paragraph 7A above, except that the City shall retain the letter of credit or surety in the amount of 10% of the estimated construction price of the Municipal Improvements during the first year of the warranty period and 5% of the estimated construction price of the Municipal Improvements during the second year of the warranty period. iii. As to all requests brought under this paragraph, the City Council shall have complete discretion whether to reduce or not to reduce said letter of credit or surety. Agenda Page 74 4 4. The boulevard trees located on the Landscape Plan attached to the Developer’s Agreement shall be installed consistent with the timelines set out in this paragraph: a. On the east side of Linwood Drive, upon the issuance of an occupancy permit for townhomes abutting Linwood Drive, but only from such townhomes south to the intersection of Linwood Drive and 68th Street. b. On the west side of Linwood Drive, when the corresponding trees on the east side of Linwood Drive are required to be planted. c. On 68th Street west of Linwood Drive, upon the construction of a building abutting 68th Street. d. On 68th Street between Linwood Drive and Lancaster Way, upon the issuance of an occupancy permit for any of the townhome units abutting 68th Street. e. On the west side of Lancaster Way, upon the issuance of an occupancy permit for townhomes abutting Lancaster Way, but only from such townhomes south to the intersection of Lancaster Way and 68th Street. f. On the east side of Lancaster Way, upon the issuance of an occupancy permit for a single family home, but only where trees are abutting the lot that contains such single family home. g. Notwithstanding the foregoing, all boulevard trees shall be installed no later than the earlier of 1) the time of issuance of the final occupancy permit for the last residence to be constructed on Said Plat or 2) four years from the date of this Agreement. 5. City and Developer agree that ____________________, as successor to Contractor Property Developers Company under the Developer’s Agreement, shall not be liable for any of Contractor Property Developers Company’s obligations under developer’s agreements pertaining to the Towne Lakes first, second, fourth, or fifth additions, and that ______________________ liability under the developer’s agreement pertaining to Towne Lakes Third Addition, recorded in the Wright County Recorder’s Office as document number 894487, shall arise only to the extent that ___________________ is the successor to Contractor Property Developers Company in the Towne Lakes Sixth Addition Developer’s Agreement. Notwithstanding this paragraph, Developer shall not be released from any liability arising from a wetland permit covering land in the Towne Lakes Sixth Addition, regardless of whether that permit also covers prior Towne Lakes additions. 6. Developer shall take all necessary steps to amend the NPDES permit for Said Plat to make Developer the responsible party under such permit. 7. Developer’s Agreement. Except as specifically altered by this Amendment, the terms of the Developer’s Agreement and the First Amendment shall remain in full force and effect for the properties in Towne Lakes 6th Addition. Dated this ___________ day of July, 2016. Agenda Page 75 5 CITY OF ALBERTVILLE, By_______________________ Its Mayor By_______________________ Its Clerk ___________________________ By_____________________ Its:_____________________ By_____________________ Its____________________ STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____________ day of July, 2016 by Jillian Hendrickson as Mayor of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. ___________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) Agenda Page 76 6 The foregoing instrument was acknowledged before me this ____________ day of July, 2016, by Kimberly Olson, as Clerk of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. ___________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ____________ day of __________________, 2016, by _____________________, the __________________ of ________________________. ___________________________________ Notary Public DRAFTED BY: Couri, MacArthur & Ruppe P.L.L.P. P.O. Box 369 705 Central Avenue East St. Michael, MN 55376 (763) 497-1930 Agenda Page 77 7 EXHIBITS EXHIBIT A Municipal Improvement and Landscaping Items to be Completed EXHIBIT B Townhome Phasing Plan EXHIBIT C Trail Easement EXHIBIT D Drainage and Utility Easements as Shown on the Towne Lakes 7th Addition Plat Agenda Page 78 8 EXHIBIT A WORK TO BE COMPLETED 1. Submit televised logs and video of sanitary sewer system for City review and approval. 2. Submit record drawings for City review and approval. 3. Bituminous street patching and repairs, as required prior to final lifts. 4. Placement of final lifts of bituminous per approved plans. 5. Repair and/or replacement of damaged storm sewer. 6. Adjust castings as required for final lift of pavement. 7. Street striping and signage per approved plans. 8. Grade and restore boulevards and medians within public right-of-way. 9. Finish-grading of lots, ponds and drainage ways per approved plans 10. Remove all silt fence, debris piles, and hay bales from site. 11. Remove inlet protection from all storm sewer structures and clean storm sewer as required. 12. Construct sidewalks per approved plans. 13. Installation of landscaping and plantings per approved plans. Agenda Page 79 9 EXHIBIT C PERMANENT TRAIL EASEMENT THIS INDENTURE, made this ____ day of ______________, 2010, by and between Kilber Section 36, LLC (Grantor); and the City of Albertville, Wright County, Minnesota, (Grantee). WITNESSETH: WHEREAS, Grantor is the owner in fee simple of the real estate hereinafter described. That for good and valuable consideration, the receipt of which is hereby acknowledged, Grantor has this day bargained and sold, and by these presents, does bargain, sell and transfer unto the City of Albertville its successors and assigns the following: A permanent trail easement, for the purpose of constructing, maintaining, and public use of a trail, over, under and across that area shown on the attached Trail Easement Exhibit over that part of Outlot B, Towne Lakes 6th Addition, according to the recorded plat thereof, Wright County, Minnesota, described as follows: Beginning at a point on the southerly line of said Outlot B, also known as the northeast corner of Lot 7, Block 7, TOWNE LAKES 5TH ADDITION; thence North 71 degrees 04 minutes 10 seconds West, along the northerly line of said Lot 7 and its westerly extension, a distance of 197.08 feet; thence North 18 degrees 55 minutes 08 seconds East, a distance of 40.00 feet; thence South 71 degrees 04 minutes 10 seconds East, a distance of 221.26 feet; thence South 18 degrees 55 minutes 50 seconds West, a distance of 40.00 feet to a point which bears South 71 degrees 04 minutes 10 seconds East from the point of beginning; thence North 71 degrees 04 minutes 10 seconds West, a distance of 24.17 feet to the point of beginning. Grantor does hereby covenant with the City of Albertville, that it is lawfully seized and possessed of the real estate above described. IN WITNESS WHEREOF, the said parties have caused this instrument to be executed the day and year first above written. Agenda Page 80 10 Kilber Section 36, LLC ______________________________ By: ______________________ Its: ______________________ STATE OF MINNESOTA ) ) s.s. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ______ day of _____________ 2010, by _______________________ as _______________ of Kilber Section 36, LLC, Grantor. ________________________________ SIGNATURE OF NOTARY This instrument was drafted by: Couri, MacArthur & Ruppe, P.L.L.P. 705 Central Ave. East P.O. Box 369 St. Michael, MN 55376 Agenda Page 81 Agenda Page 82 Page 1 of 2 Couri & Ruppe, P.L.L.P. Memo To: Adam Nafstad, City Administrator; Albertville City Council From: Mike Couri Date: July 5 , 2016 Re: Attorney Report Below is an update of the projects our office has been working on for the City. • I-94 Ramp Easement. The State is asking the City to obtain I-94 ramp easement from Albertville Marketplace using a revised legal description as the State wants clearer language in the deed from the City to the State for the ramp easement. The easement area remains unchanged—the State simply wants its specific language used in the easement document. Adam is trying to reach the owner to get the new deed signed. • Charter Cable. Charter Cable has replied to our request regarding the free cable service it is to provide to the City. Their contention is that the City is only entitled under Federal law to collect a maximum of 5% in franchise fees, which we are already collecting. Charter believes that provision of free cable service to municipal buildings over and above that 5% is prohibited under Federal law. I will check the law on this and see if Charter’s interpretation is correct. • Prairie Run. Fieldstone has closed on nine of the 10 lots on the private street and has closed on two of the 15 lots that went tax forfeit. Home sales have been very good for Fieldstone at this location this year. Agenda Page 83 Page 2 of 2 • City Hall Cleaning Contract. I have been working with Adam on preparing a new City Hall cleaning contract. • Towne Lakes 6th Addition. Kilbur Development, which bought the Town Lakes Sixth Addition property six years ago has found a buyer for the property. This buyer will likely begin building homes on the property soon. I have prepared an amendment to the Developer’s Agreement to transfer responsibility under the Developer’s Agreement from Kilbur to the new buyer. That amendment to the Developer’s Agreement is slated to be on the agenda for the July 5th meeting if everyone signs off on the language of the amendment in time. Agenda Page 84 City Administrator’s Update July 5, 2016 GENERAL ADMINISTRATION Joint Fire Service: The final report is included in this agenda packet for review. Neighbors Eatery and Saloon: The deadline for CUP compliance for Neighbor’s Eatery and Saloon is June 30, 2016. Staff will have an update at the City Council meeting. Ice Arena: The next Arena Design meeting will be on July 13. Planning Commission: With the addition of one new regular and one new alternate member, staff is working on a presentation covering planning fundamentals, roles, and other related items for the July 12 Planning Commission meeting. All Council members are invited to attend. Park Rentals: For Central Park field rentals for league play and tournaments, the City’s practice has been to require liability insurance naming the City as an additional insured during the course of the event(s). Generally, we receive this insurance certificate from organized youth athletic groups or amateur sports leagues. It has come to staff’s attention that this insurance is difficult to obtain for pick-up sports leagues, such as kickball and broomball. City staff has discussed this with the City Attorney and the legal recommendation is that liability insurance would be beneficial, so claims would not be filed against the City’s insurance policy. However, this proves difficult for non-organized teams and is also cost prohibitive. The LMCIT has recommended that the City receives a waiver from each participant if liability insurance cannot be obtained. Staff is seeking Council direction on this policy. 2016 Elections Update: Online voter registration and ability to request an absentee ballot are available to voters now; the information is available on the City’s website. Absentee voting for the Primary Election on August 9 has begun. Filing notice for local offices will be published in mid-July and will begin on August 2 through 5:00 p.m. on August 16. The deadline to withdraw from filing is August 18 at 5:00 p.m. Main Avenue NE Entrance Sign: Color Sign will begin installing the sign the week of the July 4. Once installed, we will have an electrician complete the hook-up and repair the existing service. HOA Covenants: A resident has voiced a complaint regarding the enforcement of covenants within a development. This item is on the agenda for discussion and the resident has been invited to the meeting. Water Rate Study: At the meeting, Tina will present part 1 of our water rate study. Our goal for part 1 is to explain the needed increase, discuss rate increase options, and their associated impact to residential and commercial users. Agenda Page 85 City Administrator’s Update Page 2 of 2 June 30, 2016 STMA School Board Ward Representation: Several individuals have asked about ward representation of the STMA School Board. Staff would like to discuss this with the Council prior to doing further research. ENGINEERING/PUBLIC WORKS 57th Street NE: The final lift of pavement is on and striping is scheduled for the week of July 13. Lachman Avenue NE Rear Yard Drainage: This project is generally complete, with the exception of the trail patch and final grade restoration. I have requested pricing to overlay this small segment of trail since the contractor will already be doing the patch. 57th Street NE and CSAH 19 Intersection Improvements: SRF is finalizing their report and I hope to be able to present it at the second meeting in July. Signal Painting: Painting of the signals at the CSAH 19 intersections of CSAH 37 and the Outlet Mall are complete. 2017 Street Improvements: We are preparing for the 2017 street project. Included on the agenda is a proposal for a topographic survey. CSAH 37 Bridge Re-Striping: On July 11 Albertville, Otsego, Wright County and MnDOT will be meeting to discuss re-striping the CSAH 37 Bridge to include dedicated left turn lanes. UPCOMING EVENTS and ANNOUNCEMENTS: (none) ATTACHMENTS: (none) Agenda Page 86