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HomeMy WebLinkAbout11-07-17 Packet items 1-15 NOTICE OF MEETING City Council Meeting Tuesday, November 7, 2017 7:00 P.M. City of Lake Elmo | 3800 Laverne Avenue North AGENDA A. Call to Order/Pledge of Allegiance B. Approval of Agenda C. Approval of Minutes 1. October 17, 2017 D. Public Comments/Inquires E. Presentations F. Consent Agenda 2. Approve Payment of Disbursements and Payroll 3. Approve Job Description and Authorize Advertising for Finance Director 4. Accept Third Quarter Financials 5. Accept Donation from Lake Elmo Baseball – Resolution 2017-128 6. Authorize Certification of Delinquent Storm Water Utility Bills – Resolution 2017-119 7. Approve Annual Public Service Recognition Event, January 2018 8. Approve Master Joint Powers Agreement Authorized Agency and Court Data Services Subscriber Amendment – Resolution 2017-120 9. Approve Appointment to Central Greenway Regional Trail Technical Advisory Committee 10. CSAH 15 & CSAH 14 Realignment – Approve Resolution of Support for the Local Road Improvement Program Grant Application – Resolution 2017-121 11. Washington County DRAFT 2018-2022 Capital Improvement Plan – City Review and Comments 12. Approve US Solar Subscription 13. Approve Zoning Map Amendment Rezoning City Parks – Ordinance 08-190 14. Approve Massage Therapy License Renewals – Renew/Recover Massage Therapy, Body & Soul 15. Authorize Advertising and Hiring of Warming House Attendants G. Regular Agenda 16. Comprehensive Plan Amendment and Zoning Text Amendment to Amend Language Regarding Allowable Density for Open Space Preservation Developments – Resolution 2017-123; 2017-124 17. 2018 Street Improvements – Accept Feasibility Report. Call Public Improvement Hearing – Resolution 2017- 125 18. 2018 Health Insurance Plan and Rates – Resolution 2017-122 19. Easton Village 2nd and 3rd Addition Development Agreement Amendment Request – Resolution 2017-126; 2017-127 H. Council Reports I. Staff Reports and Announcements J. Adjourn Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner While Preserving the City’s Open Space Character CITY OF LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 CALL TO ORDER/PLEDGE OF ALLEGIANCE Mayor Pearson called the meeting to order at 7:00 pm. PRESENT: Mayor Mike Pearson and Councilmembers Justin Bloyer, Julie Fliflet, Jill Lundgren and Christine Nelson Staff present: Administrator Handt, City Attorney Sonsalla, City Engineer Griffin, Planning Director Becker, and City Clerk Johnson. APPROVAL OF AGENDA Item 11, “Approve Increase to Lake Elmo Fire Relief Benefit” was moved to the beginning of the Regular Agenda. Item 7, “Approve Fall Newsletter” and Item 13, “Approve Conditional Use Permit for Increased Accessory Structures, 11459 60th St. N.” were moved to the Regular Agenda. Councilmember Bloyer, seconded by Councilmember Nelson, moved TO APPROVE THE AGENDA AS AMENDED. Motion passed 5 – 0. ACCEPT MINUTES Minutes of the September 19, 2017 and October 3, 2017 Regular Meetings were accepted as presented. Councilmember Lundgren abstained from approval of the October 3, 2017 minutes due to her absence from the meeting. PUBLIC COMMENTS/INQUIRIES None PRESENTATIONS None CONSENT AGENDA 2. Approve Payment of Disbursements 3. Accept September 2017 Assessor’s Report 4. Accept September 2017 Building Department Report 5. Accept September 2017 Fire Department Report 6. Accept September 2017 Public Works Department Report 7. Approve Fall Newsletter (moved to the Regular Agenda) LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 Page 2 of 7 8. Authorize Issuance of Request for Proposals for Engineering Services 9. Authorize Issuance of Request for Proposals for Landscape Architecture Services 10. Accept Resignation of Public Works Operator Paulson and Authorize Advertising for the position 11. Approve Increase to Lake Elmo Fire Relief Benefit (moved to the Regular Agenda) 12. Adopt Firefighter Declaration Resolution – Resolution 2017-108 13. Approve Conditional Use Permit for Increased Accessory Structures, 11459 60th St N – Resolution 2017-116 (moved to the Regular Agenda) 14. Approve Lake Elmo Lake Improvement Matching Grant 15. Approve Private Development Security Reductions – Village Preserve 2nd Addition and Easton Village 2nd Addition 16. I-94 Lift Station and Sanitary Sewer Improvements – Approve Change Order No. 1 17. Old Village Ph3 Street & Utility Improvements – Approve Change Order 3 18. Old Village Ph3 Street & Utility Improvements – Approve Pay Request No. 4 19. 2017 Mill and Overlay – Approve Compensating Change Order No. 2 20. 2017 Mill and Overlay – Approve Pay Request No. 1 (FINAL) 21. Approve Lions Park Change Order No. 2 Councilmember Nelson, seconded by Councilmember Bloyer, moved TO APPROVE THE CONSENT AGENDA AS PRESENTED. Motion passed 5 - 0. ITEM 7: Approve Fall Newsletter Councilmember Fliflet commented on the winter parking, library and budget articles in the newsletter. Councilmember Fliflet, seconded by Councilmember Lundgren, moved THAT THE CITY BE FULLY TRANSPARENT WITH THE RESIDENTS OF LAKE ELMO REGARDING THEIR TAX LEVY INCREASE, AND REPORT THA THE 2018 PRELMINIARY TAX LEVY WITHOUT TAKING CREDIT FOR A LIBRARY TAX REDUCTION AND ETHICALLY STATE THE TRUE LEVY INCREASE IN TOTAL FOR RESIDENTS WHICH IS OVER 30%. Motion failed 2 – 3. (Pearson, Bloyer, Nelson – nay) Mayor Pearson, seconded by Councilmember Nelson, moved TO APPROVE THE ATTACHED DRAFT AND TO AUTHORIZE PRINTING AND DISTRIBUTION OF THE SOURCE NEWSLETTER FOR THE WINTER OF 2017-2018. Motion passed 3 – 2. (Fliflet, Lundgren – nay) ITEM 13: Approve Conditional Use Permit for Increased Accessory Structures, 11459 60th St. N. City Planner Becker provided a brief overview of the request for a Conditional Use Permit to allow for the continued use of existing accessory structures on a parcel. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 Page 3 of 7 Councilmember Fliflet moved TO ADOPT RESOLUTION 2017-116 APPROVING THE REQUEST FROM RICHARD, EILEEN AND CHAD BERGMANN FOR A CONDITIONAL USE PERMIT TO ALLOW AN EXCESS OF THE PERMITTED TWO ACCESSORY STRUCTURES AND ACCESSORY STRUCTURE SIZE REQUIREMENTS IN THE RURAL RESIDENTIAL ZONING DISTRICT FOR THE PROPERTY LOCATED AT 11459 60TH STREET NORTH SUBJECT TO RECOMMENDED CONDITION OF APPROVAL AND WAIVING THE CONDITIONAL USE PERMIT FEE. Motion died – no second. Mayor Pearson, seconded by Councilmember Bloyer, moved TO ADOPT RESOLUTION 2017-116 APPROVING THE REQUEST FROM RICHARD, EILEEN AND CHAD BERGMANN FOR A CONDITIONAL USE PERMIT TO ALLOW AN EXCESS OF THE PERMITTED TWO ACCESSORY STRUCTURES AND ACCESSORY STRUCTURE SIZE REQUIREMENTS IN THE RURAL RESIDENTIAL ZONING DISTRICT FOR THE PROPERTY LOCATED AT 11459 60TH STREET NORTH SUBJECT TO RECOMMENDED CONDITION OF APPROVAL. Motion passed 5 – 0. ITEM 22: Zoning Text Amendment, Zoning Map Amendment and a Request for CUP to Allow Commercial Boarding Facility as an Accessory Use at 10880 Stillwater Blvd. N. Planning Director Becker reviewed the details of the proposal and points for Council consideration. Richard Rothstein spoke on behalf of the applicant, requesting clarification on points in the staff report prepared for the Council Meeting. Councilmember Bloyer, seconded by Councilmember Nelson, moved TO SUSPEND THE RULES TO ALLOW DISCUSSION PRIOR TO A MOTION ON THIS MATTER. Motion withdrawn. Councilmember Fliflet, seconded by Councilmember Lundgren, moved TO ADOPT ORDINANCE 08-188 APPROVING A ZONING TEXT AMENDMENT TO ALLOW COMMERCIAL BOARDING FACILITY AS A CONDITIONAL ACCESSORY USE WITHIN THE AGRICULTURAL ZONING DISTRICT. Motion failed 2 – 3. (Pearson, Bloyer, Nelson – nay) Councilmember Bloyer, seconded by Mayor Pearson, moved TO ADOPT RESOLUTION 2017-117 DENYING A ZONING MAP AMENDMENT TO REZONE FOR THE PROPERTY LOCATED AT 10880 STILLWATER BLVD N FROM RURAL DEVELOPMENT TRANSITIONAL TO AGRICULTURAL. Motion passed 3 – 2. (Fliflet, Lundgren - nay) Councilmember Boyer, seconded by Councilmember Nelson, moved TO ADOPT RESOLUTION 2017-118 DENYING A ZONING TEXT AMENDMENT TO ALLOW COMMERCIAL BOARDING FACILITY AS A CONDITIONAL ACCESSORY USE WITHIN THE AGRICULTURAL ZONING DISTRICT. Motion passed 3 – 2. (Fliflet, Lundgren – nay) LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 Page 4 of 7 Councilmember Bloyer, seconded by Mayor Pearson, moved TO ADOPT RESOLUTION 2017-106 DENYING A CONDITIONAL USE PERMIT TO ALLOW A COMMERCIAL BOARDING FACILITY AS AN ACCESSORY USE FOR THE PROPERTY LOCATED AT 10880 STILLWATER BLVD. N. Motion passed 3 – 2. (Fliflet, Lundgren – nay) Mayor Pearson, seconded by Councilmember Nelson, moved TO ADOPT RESOLUTION 2017-105 APPROVING A CONDITIONAL USE PERMIT TO ALLOW EXPANSION OF AN EXISTING FEEDLOT WITHIN THE SHORELAND FOR THE PROPERTY LOCATED AT 10880 STILLWATER BLVD. N. SUBJECT TO THE RECOMMENDED CONDITIONS OF APPROVAL. Motion failed 2 – 1 -2. (Bloyer – nay; Fliflet, Lundgren – nay) Councilmember Bloyer, seconded by Mayor Pearson, moved TO RECONSIDER THE MOTION TO ADOPT RESOLUTION 2017-105. Motion passed 5 – 0. Councilmember Bloyer, seconded by Mayor Pearson, moved TO ADOPT RESOLUTION 2017-105 APPROVING A CONDITIONAL USE PERMIT TO ALLOW EXPANSION OF AN EXISTING FEEDLOT WITHIN THE SHORELAND FOR THE PROPERTY LOCATED AT 10880 STILLWATER BLVD. N. SUBJECT TO THE RECOMMENDED CONDITIONS OF APPROVAL. Motion passed 3 – 0 – 2. (Fliflet, Lundgren – abstain) ITEM 23: 2017 Street Improvements - Assessment Hearing, Adoption of Final Assessment Roll City Engineer Griffin reviewed the project details, reported on the final project cost and funding sources. Councilmember Lundgren, seconded by Councilmember Bloyer, moved TO OPEN THE PUBLIC HEARING. Motion passed 5 – 0. No public comments were submitted. Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO CLOSE THE PUBLIC HEARING. Motion passed 5 – 0. Councilmember Lundgren, seconded by Councilmember Bloyer, moved TO ADOPT RESOLUTION 2017-109, ADOPTING THE FINAL ASSESSMENT ROLL FOR THE 2017 STREET IMPROVEMENTS. Motion passed 5 – 0. ITEM 24: Inwood Trunk Watermain Improvements – Assessment Hearing, Adoption of Final Assessment Roll City Engineer Griffin reviewed the improvement project and reported on final project costs and funding sources. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 Page 5 of 7 Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO OPEN THE PUBLIC HEARING. Motion passed 5 – 0. No public comments were submitted. Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO CLOSE THE PUBLIC HEARING. Motion passed 5 – 0. Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO ADOPT RESOLUTION 2017-110, ADOPTING THE FINAL ASSESSMENT ROLL FOR THE INWOOD TRUNK WATERMAIN IMPROVEMENTS. Motion passed 5 – 0. ITEM 25: Old Village Phase 2 Improvements – Assessment Hearing, Adoption of Final Assessment Roll City Engineer Griffin reviewed the scope of the improvements and assessment methodology. Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO OPEN THE PUBLIC HEARING. Motion passed 5 – 0. Barbara Swanson, 11316 30th Street North, stated that residents were told in the past that if farmers developed land residents wouldn’t have to pay for sewer improvements. City Administrator Handt noted two other assessment objections were received by the City prior to the hearing. Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO CLOSE THE PUBLIC HEARING. Motion passed 5 – 0. Councilmember Bloyer, seconded by Councilmember Nelson, moved TO ADOPT RESOLUTION 2017-111, ADOPTING THE FINAL ASSESSMENT ROLL FOR THE OLD VILLAGE PHASE 2 IMPROVEMENTS. Motion passed 5 – 0. ITEM 26: Comprehensive Plan Amendment and Concept Plan for Continental Properties City Planner Becker provided information on the applicant and the proposal for a 300 unit multi-family development. Becker reviewed the comments held at the public hearing and the Planning Commission recommendations and also reported on comments from the Parks Commission and Engineering. Gwen Wheeler, Continental Properties, reviewed the site location, building designs, lighting, neighborhood amenities, resident profile and community benefits to the City. Tucker Pearce, 9811 7th Street North, urged the Council to deny the request and stick to the comprehensive plan. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 Page 6 of 7 Stefany Lorang, 9918 7th Street North, spoke in opposition of the comp plan amendment to increase density. Mike Kobe, 9616 Junco Road North, spoke in opposition of the proposal, stating town homes would be a better fit for the area. Kourtney Bryan, 618 Juniper Court North, asked the Council to follow the comp plan. Mayor Pearson, seconded by Councilmember Nelson, moved TO SUSPEND THE RULES REGARDING TIME ALLOWED FOR COUNCILMEMBERS TO SPEAK. Motion passed 3 – 1 – 1. (Fliflet - nay; Lundgren – abstain. Mayor Pearson, seconded by Councilmember Nelson, moved TO REFER THE CURRENT AGENDA ITEM BACK TO THE PLANNING COMMISSION. Motion passed 5 – 0. ITEM 27: Variance for 8130 Hill Trail Planning Director Becker presented the request for a variance to allow an addition to an existing home and relocation of the septic system. Becker reported on Planning Commission recommendations and conditions of approval. Mayor Pearson, seconded by Councilmember Bloyer, moved TO ADOPT RESOLUTION 2017-115 APPROVING THE REQUEST FROM PETER AND ADRIENNE PAVEK FOR A VARIANCE TO ALLOW EXPANSION OF A NON-CONFORMING STRUCTURE NOT MEETING THE REQUIRED SETBACK FROM THE ORDINARY HIGH WATER LEVEL OR MINIMUM LOT SIZE REQUIRED WITHIN THE RURAL SINGLE FAMILY ZONING DISTRICT, SUBJECT TO RECOMMENDED CONDITIONS OF APPROVAL. Motion passed 5 – 0. Councilmember Nelson, seconded by Mayor Pearson, moved TO ADOPT RESOLUTION 2017-114 APPROVING THE REQUEST FROM PETER AND ADRIENNE PAVEK FOR A VARIANCE FROM THE REQUIRED SETBACKS FOR A SEPTIC SYSTEM FROM PROPERTY LINES, SHORELAND BLUFFLINE, ORDINARY HIGH WATER LEVEL AND NON-OCCUPIED STRUCTURE, SUBJECT TO RECOMMENDED CONDITIONS OF APPROVAL. Motion passed 5 – 0. COUNCIL REPORTS Mayor Pearson: No report. Councilmember Nelson: No report. Councilmember Lundgren: Provided a reminder of the Lake Elmo Jaycees Halloween party. Councilmember Bloyer: No report. Councilmember Fliflet: No report. LAKE ELMO CITY COUNCIL MINUTES OCTOBER 17, 2017 Page 7 of 7 STAFF REPORTS AND ANNOUNCEMENTS Administrator Handt: Ribbon cutting for the Olson Lake Trail project will be held on Saturday, October 21st. City Clerk Johnson: No report. City Attorney Sonsalla: Working on Hidden Meadows plat opinion. Planning Director Becker: No report. City Engineer Griffin: Working on review of three large plats. Meeting adjourned at 10:30 pm. LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Mike Pearson, Mayor _______________________________ Julie Johnson, City Clerk STAFF REPORT -- page 1 -- DATE: November 7, 2017 CONSENT TO: Mayor and City Council FROM: Amy La Belle, Accountant AGENDA ITEM: Approve Disbursements in the amount of $ 902,368.82 REVIEWED BY: Kristina Handt, City Administrator BACKGROUND INFORMATION/STAFF REPORT: The City of Lake Elmo has the fiduciary responsibility to conduct normal business operations. Below is a summary of current claims to be disbursed and paid in accordance with State law and City policies and procedures. FISCAL IMPACT: $255,380.05 Claim # Amount Description ACH $ 61,764.51 Payroll 46586-46667 $ 840,604.31 Accounts Payable $ 0.00 Accounts Payable (Library Checks) NONE TOTAL $ 902,368.82 RECOMMENDATION: If removed from the consent agenda, the recommended motion is as follows: “Motion to approve the aforementioned disbursements in the amount of $902,368.82.” ATTACHMENTS: 1. Accounts Payable – check register STAFF REPORT DATE: November 7, 2017 CONSENT ITEM #: 3 AGENDA ITEM: Approve Job Description and Authorize Advertising for Finance Director SUBMITTED BY: Jake Foster, Assistant City Administrator BACKGROUND: At the September work session Council reviewed existing contracted services, including those for Finance Director. Staff mentioned that some other cities were having success recruiting qualified candidates and expressed an interest in seeing what the market produced for Lake Elmo. Council agreed to have staff work on a posting. ISSUE BEFORE COUNCIL: Should the Council approve the job description and authorizing advertising for a full-time finance director? PROPOSAL: Included in the packet is the proposed job description that was created by DDA during the recent job classification and compensation study. Based on market rate comparisons in the recent DDA study, the proposed salary range for a full-time finance director for the City will be between $76,295 and $99,175 annually. FISCAL IMPACT: The estimated annual fiscal impact is $103,000-$130,000 including salary, taxes, and benefits. The cost would be split 80% general fund, 10% water, 5% sewer, and 5% storm water. RECOMMENDATION: If removed from the consent agenda: “Move to approve the job description and authorize advertising for finance director.” ATTACHMENTS: Job description City of Lake Elmo Job Title: Finance Director Department: Finance Status: Full-time regular position Benefits: Qualifies for full-time benefits Reporting Relationship: Reports to City Administrator Supervisory Duties: This position is responsible for supervising Accountant and Finance Intern Position Details: This position is responsible to plan, develop, and oversee the City financial functions to provide efficient, effective, and accurate reporting. This includes the oversight and coordination in the preparation of the Comprehensive Annual Financial Report and the annual audit. This position is responsible for the investment and reconciliation of all the City funds and making required bond payments and the bond funding recommendations as needed. This position is also responsible for the coordination of the annual budget and CIP reports. This position provides clear communication and technical support to the City Council, Finance Committee, and City Administrator through reports and presentations. Annual Budget:  Supervises all accounting functions, including cash records, control, receivables, payables, subsidiary reports and invoices  Performs cash flow analysis and supervises bank transactions  Prepares and distributes monthly financial statements  Reviews purchase orders and disbursement requests for compliance with City budget  Maintains financial ledgers, journals, and subsidiary reports  Conducts analysis of project financing and refinances, and is responsible for preparation and implementation of financing and refinancing  Supervises the operations and maintenance of computerized accounting system Annual Budget:  Prepares and manages Finance Department budget  Responsible for financial projections and budget estimates as required  Maintains the safety of invested funds while maximizing returns on investment in compliance with investment policies and guidelines  Ensure proper preparation of all withholding reports and deposits, and all monthly and quarterly reports required by law  Anticipates City cash and liquidity needs and invests funds to provide necessary cash flow Utility Billing:  Ensures the proper preparation for utility billing and maintenance of computerized utility billing systems  Prepares assessments for the County Employee Relations:  Responsible for performance of risk management  Ensures proper preparation of payroll disbursements for all City employees and maintenance of employee records  Oversees maintenance of computerized payroll system Supervisory Responsibilities:  Establishes and maintains policies and procedures for the Department  Carries out supervisory duties in accordance with the City’s policies and applicable laws  Responsible for training, planning, assigning and directing work  Responsible for evaluating performance, rewarding employees, disciplining employees  Responsible for responding to grievances, addressing complaints and addressing problems of employees While these are the primary focus of the position, we believe strongly in teamwork and employees will be called upon to perform a variety of duties as part of their role with the City. Position Requirements Knowledge, Skills and Abilities:  Demonstrates ability to prioritize tasks, solve problems and meet deadlines  Works well with internal staff and provides them with accurate and timely financial reports and problem resolution when appropriate  Makes minimal errors completing recurring entries, bank reconciliations, monthly billings, calculations, subsidiary spreadsheets, accounts payable and payroll processing  Ability to perform with minimal supervision  Contributes to the team effort and positive image of the Department by consistently providing a high level of support to internal and external customers  Promptly resolves accounting problems in a constructive and well-documented manner  Maintain internal and external relationships via in-person, phone, or e-mail with residents, vendors, auditors, staff, realty agents and bank professionals Education: four-year degree in Accounting, Finance, Business Administration or related field Requirements: Minimum of five years’ experience related field and experience in municipal finance management and municipal accounting Process basic computers skills, including a good knowledge of and experience using: • E-mail and Microsoft Outlook • Web Browsing • Basic Computer Mapping (Google Maps, Bing) • Adobe PDF Viewer • Microsoft Office Products Desired Qualifications:  CPA  Supervisory experience Physical and Mental Requirements: Positions in this job typically require: sitting, feeling, manual dexterity, grasping, talking, hearing, typing, and seeing. This position encounters unexpected and prolonged workdays and stress and pressure from dealing with emotional issues and conflicts. There is also sustained exposure to computer keyboards and video screens. This positon is generally light-duty and may require the exertion up to 20 pounds of force on occasion and the ability to lift, carry, push, pull and move objects. The individual may encounter unexpected and prolonged workdays and stress and pressure from dealing with emotional issues and conflicts. **The physical demands described here are representative to those that must be met by an employee to successfully perform the essential functions of the job. Reasonable accommodations can be made to enable individuals with disabilities to perform the essential functions. Working Conditions: Most work is performed in an office setting Competencies Common to All City Positions: • Develop, maintain a thorough working knowledge of, and comply with all departmental and applicable City policies and procedures • Demonstration by personal example the spirit of service, excellence, and integrity expected from all staff • Develop respectful and cooperative working relationships with co-workers, including willing assistance to newer staff so job responsibilities can be performed with confidence as quickly as possible • Confer regularly with and keep immediate supervisor informed of all important matters which pertain to the applicable job functions and responsibilities • Represent the City of Lake Elmo in a professional manner to the public, outside contacts and constituencies **The work environment characteristics described here are representative to those an employee encounters while performing essential functions of this job. Reasonable accommodations can be made to enable individuals with disabilities to perform the essential functions. STAFF REPORT DATE: November 7, 2017 REGULAR ITEM #4 - Consent MOTION TO: City Council FROM: Brian A. Swanson – Finance Director AGENDA ITEM: Accept 3rd Quarter Financials REVIEWED BY: Kristina Handt – City Administrator BACKGROUND: The City of Lake Elmo has fiduciary authority and responsibility to conduct normal business operations and report the unaudited financial information to the City Council on a regular basis. QUESTIONS BEFORE THE CITY COUNCIL: 1) Does the City Council have any questions regarding the attached 3rd Quarter Financial information? 2) Is the City Council comfortable approving the 3rd Quarter Financial information for approval? DISCUSSION: As part of informing the City Council and community on the financial position of the City, staff prepared budget to actual information for the General Fund and Utility Funds in the attachment. This format more closely follows the City’s Comprehensive Annual Financial Report (CAFR) by providing budget to actual figures and in similar revenue and expenditure/expense categories. This also aligns with the updated budget worksheets the City Council received during the 2018 budget cycle. On the attachment there are comments outlining key items for the City Council. FISCAL IMPACT: N/A RECOMMENDATION: 1) Motion to recommend approval of the 3rd Quarter Financial Statements which include the General Fund and Utility Funds. ATTACHMENTS: 1) 3rd Quarter Financials – General Fund and Utility Funds CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 1 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments General Fund Revenues: Taxes 101-000-0000-31010 Current Ad Valorem Taxes 2,019,331$ 1,629,875$ 896,685$ 55.02%2nd half in December101-000-0000-31020 Delinquent Ad Valorem Taxes 13,546 15,000 12,410 82.73%2nd half in December 101-000-0000-31030 Mobile Home Tax 14,366 12,000 3,017 25.14%2nd half in December 101-000-0000-31040 Fiscal Disparities 157,096 161,272 111,967 69.43%2nd half in December 101-000-0000-31910 Penalty & Interest on Taxes 185 700 423 60.43%2nd half in December Total Taxes 2,204,523$ 1,818,847$ 1,024,502$ 56.33% Licenses and Permits 101-000-0000-32110 Liquor License 7,025 9,000 8,300 92.22%Due beginning of each year. 101-000-0000-32180 Wastehauler License 1,560 1,000 - 0.00% 101-000-0000-32181 General Contractor License 150 150 - 0.00%Combination permit 101-000-0000-32183 Heating Contractor License 3,450 2,850 800 28.07%Combination permit 101-000-0000-32210 Building Permits 902,690 808,157 866,465 107.21% 101-000-0000-32211 Driveway Permits 10,190 - 14,045 #DIV/0! 101-000-0000-32220 Heating Permits 128,558 44,820 112,435 250.86%101-000-0000-32230 Plumbing Permits 92,752 44,820 84,505 188.54% 101-000-0000-32240 Animal License 1,900 1,720 1,605 93.31%101-000-0000-32250 Utility Permits 60,234 33,000 30,196 91.50% 101-000-0000-32260 Burning Permit 2,035 3,750 1,405 37.47%101-000-0000-32270 Massage Therapy Licenses 75 100 - 0.00% 101-000-0000-35101 Fire Sprinkler Alarm Fees - 15,000 10,835 72.23%New in 2017Total Licenses and Permits 1,210,619$ 964,367$ 1,130,591$ 117.24% Intergovernmental101-000-0000-33418 MSA - Maintenance 123,433 130,838 122,883 93.92%From FOCUS via MNDOT - Feb and July install. 101-000-0000-33420 State Fire Aid 59,136 47,000 - 0.00%October receipt101-000-0000-33422 PERA Aid 2,749 2,749 1,375 50.00%July and December receipt. 101-000-0000-33426 Miscellaneous State Grants 8,367 4,820 541 11.22%101-000-0000-33621 Recycling Grant 15,688 15,688 15,688 100.00% Total Intergovernmental 209,373$ 201,095$ 140,486$ 69.86% Charges for Services 101-000-0000-34103 Zoning & Subdivision Fees 33,490 23,000 44,308 192.64%CUP, code amendments. 101-000-0000-34104 Plan Check Fees 500,965 513,002 487,470 95.02%Based on building permit fees. 101-000-0000-34105 Sale of Copies, Books, Maps 213 280 9 3.13% 101-000-0000-34107 Assessment Searches 4,905 1,395 885 63.44% 101-000-0000-34110 Rent - - 12 #DIV/0! 101-000-0000-34111 Cable Operation Reimbursement 1,600 4,000 1,710 42.75% 101-000-0000-36206 Escrow Administration Fee 2,800 24,900 22,800 91.57%New in late 2016. Total Charges for Services 543,973$ 566,577$ 557,193$ 98.34% Fines and Forfeits 101-000-0000-35100 Fines 49,505 46,500 30,557 65.71%Total Fines and Forfeits 49,505$ 46,500$ 30,557$ 65.71% Investment Earnings101-000-0000-36210 Interest Earnings 20,437 40,000 - 0.00%$4M cash at 1%.- Allocated at year end. Total Investment Earnings 20,437$ 40,000$ -$ 0.00% Miscellaneous 101-000-0000-33622 Cable Franchise Revenue 98,218 72,000 67,178 93.30%2017 Cable Upgrade Rev. - $27K 101-000-0000-36200 Miscellaneous Revenue 28,205 4,000 28,923 723.08%Tax forfeit, misc. accts. Receivable, dev. Fees. CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 2 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 101-000-0000-36204 Reimbursements - Fire 1,500 500 - 0.00%101-000-0000-36207 ISD Service Fee In Lieu of Tax - 31,500 - 0.00%Due in Dec. - 2% incr./yr. - Ends in 2026. 101-000-0000-36230 Donations 10,000 10,000 11,400 114.00%101-000-0000-37180 Tower Rent - 46,000 42,644 92.70%Based on contracts. 101-000-0000-38000 Use of Fund Balance - 150,000 - 0.00% Total Miscellaneous 137,924$ 314,000$ 150,145$ 47.82% Total General Fund Revenues:4,376,355$ 3,951,386$ 3,033,475$ 76.77% General Fund Expenditures: 1110 Mayor & Council Personnel 101-410-1110-41030 Part-time Salaries 25,690 25,690 12,845 50.00%Paid in December for 2nd half. 101-410-1110-41220 FICA Contributions 1,593 1,593 796 49.99%Paid in December for 2nd half. 101-410-1110-41230 Medicare Contributions 373 373 186 49.94%Paid in December for 2nd half. 101-410-1110-41510 Workers Compensation - 300 67 22.46% Total Personnel 27,655$ 27,956$ 13,895$ 49.70% Materials and Supplies 101-410-1110-42000 Office Supplies 72 - 114 #DIV/0! 101-410-1110-42001 Computer Reimbursement - - 1,911 #DIV/0!2017 for paperless packets.101-410-1110-43310 Mileage - 375 - 0.00% Total Materials and Supplies 72$ 375$ 2,025$ 540.00% Charges and Services 101-410-1110-44300 Miscellaneous 15,691 5,250 6,568 125.11%101-410-1110-44330 Dues & Subscriptions 11,986 11,813 3,622 30.66% 101-410-1110-44370 Conferences & Training 520 1,500 180 12.00% Total Charges and Services 28,197$ 18,563$ 10,370$ 55.86% 1110 Total Mayor & Council 55,924$ 46,894$ 26,290$ 56.06% 1320 Administration Personnel 101-410-1320-41010 Full-time Salaries 195,150 153,083 134,052 87.57%Assistant Admin for 1 quarter of '17. 101-410-1320-41030 Part-time Salaries 5,613 - 6,005 #DIV/0!Intern 101-410-1320-41210 PERA Contributions 14,378 11,481 12,592 109.68%Assistant Admin for 1 quarter of '17. 101-410-1320-41220 FICA Contributions 11,823 9,491 11,314 119.21%Assistant Admin for 1 quarter of '17. 101-410-1320-41230 Medicare Contributions 2,765 2,220 2,656 119.64%Assistant Admin for 1 quarter of '17. 101-410-1320-41300 Insurance 28,335 26,787 26,178 97.73%Assistant Admin for 1 quarter of '17.101-410-1320-41510 Workers Compensation 6,252 6,300 693 10.99% Total Personnel 264,317$ 209,362$ 193,490$ 92.42% Materials and Supplies 101-410-1320-42000 Office Supplies 5,113 5,500 3,546 64.47% 101-410-1320-42030 Printed Forms 771 700 84 11.99%Deposit slips & Receipt books 101-410-1320-43040 Legal Services 322,842 170,000 91,403 53.77%3M Litigation now paid by Water Fund for '17-18. 101-410-1320-43090 Newsletter/Website - 8,000 90 1.13% Total Materials and Supplies 328,727$ 184,200$ 95,123$ 51.64% Charges and Services 101-410-1320-43100 Assessing Services 52,049 38,000 29,126 76.65%250 New parcels per year and W.C. charge 101-410-1320-43150 Contract Services 1,019 - 15,080 #DIV/0!Comp. Study, actuarial services and shredding 101-410-1320-43180 Information Technology/Web 470 - 609 #DIV/0! 101-410-1320-43190 Software Programs 2,338 - 2,601 #DIV/0!laser fiche, plan it, adobe, etc CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 3 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 101-410-1320-43210 Telephone 1,574 1,500 1,135 75.67%101-410-1320-43220 Postage 3,741 3,000 (312) -10.40% 101-410-1320-43310 Mileage 418 348 517 148.56%101-410-1320-43510 Legal Publishing 8,003 7,088 2,330 32.87% 101-410-1320-43610 Insurance 26,121 28,000 27,630 98.68% 101-410-1320-43620 Cable Operation Expense - 31,400 - 0.00%Capital one-time expenditure. 101-410-1320-44330 Dues & Subscriptions 1,877 2,500 1,227 49.08%101-410-1320-44370 Conferences & Training 844 2,170 1,346 62.03% Total Charges and Services 98,454$ 114,006$ 81,289$ 71.30% Miscellaneous 101-410-1320-44300 Miscellaneous 538 600 212 35.33% Total Miscellaneous 538$ 600$ 212$ 35.33% 1320 Total Administration 692,035$ 508,168$ 370,114$ 72.83% 1410 Elections Personnel 101-410-1410-41030 Part-time Salaries 7,037 - - #DIV/0! 101-410-1410-41510 Workers Compensation - - - #DIV/0! Total Personnel 7,037$ -$ -$ #DIV/0! Charges and Services 101-410-1410-43150 Contract Services 1,200 1,200 1,660 138.33%Wash. Cty. charges for elections Total Charges and Services 1,200$ 1,200$ 1,660$ 138.33% Capital Outlay101-410-1410-45800 Other Equipment 20 - - #DIV/0! Total Capital Outlay 20$ -$ -$ #DIV/0! Miscellaneous 101-410-1410-44300 Miscellaneous 835 - - #DIV/0! Total Miscellaneous 835$ -$ -$ #DIV/0! 1410 Total Elections 9,092$ 1,200$ 1,660$ 138.33% 1450 Communications Personnel 101-410-1450-41010 Full-time Salaries - - 423 #DIV/0!New Hire - Asst. Admin. 101-410-1450-41030 Part-time Salaries - - - #DIV/0!New Hire - Asst. Admin. 101-410-1450-41210 PERA Contributions - - 32 #DIV/0!New Hire - Asst. Admin. 101-410-1450-41220 FICA Contributions - - 26 #DIV/0!New Hire - Asst. Admin. 101-410-1450-41230 Medicare Contributions - - 6 #DIV/0!New Hire - Asst. Admin. 101-410-1450-41300 Insurance - - - #DIV/0!New Hire - Asst. Admin. 101-410-1450-41510 Workers Compensation - - - #DIV/0! Total Personnel -$ -$ 487$ #DIV/0! Charges and Services 101-410-1450-43090 Newsletter - - - #DIV/0! 101-410-1450-43180 Information Technology/Web 50,580 67,396 37,084 55.02%Roseville IT. Allocated to Utilities now too. 101-410-1450-43210 Telephone 308 - - #DIV/0! 101-410-1450-43220 Postage - - - #DIV/0! 101-410-1450-43310 Mileage - - - #DIV/0!101-410-1450-43510 Public Notices - - - #DIV/0! 101-410-1450-43620 Cable Operations 3,955 - 4,580 #DIV/0!Increased meetings.101-410-1450-44370 Conferences and Training - - - #DIV/0! CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 4 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments Total Charges and Services 54,843$ 67,396$ 41,664$ 61.82% 1450 Total Communications 54,843$ 67,396$ 42,151$ 62.54% 1520 Finance Personnel 101-410-1520-41010 Full-time Salaries 63,053 59,561 53,297 89.48% 101-410-1520-41030 Part-time Salaries 12,702 10,000 10,274 102.74%Intern and former PT person. 101-410-1520-41210 PERA Contributions 5,281 4,835 1,784 36.90% 101-410-1520-41220 FICA Contributions 4,500 3,997 1,702 42.58% 101-410-1520-41230 Medicare Contributions 1,052 935 398 42.57% 101-410-1520-41300 Insurance 10,938 11,994 5,758 48.01% 101-410-1520-41420 Unemployment Benefits - - - #DIV/0! 101-410-1520-41510 Workers Compensation 204 600 315 52.45% Total Personnel 97,731$ 91,922$ 73,527$ 79.99% Materials and Supplies 101-410-1520-42000 Office Supplies 338 600 446 74.30% 101-410-1520-42030 Printed Forms 1,117 375 - 0.00%Checks ordered in Oct. 2016. Total Materials and Supplies 1,456$ 975$ 446$ 45.72% Charges and Services 101-410-1520-43010 Audit Services 29,345 29,500 26,575 90.08%Contract ends in 2017 but paid in 2018. 101-410-1520-43150 Contract Services 114 101 111,738 110631.68%Select $150- CLA Allocated at 75% 101-410-1520-43190 Software Programs - - 6,400 #DIV/0!Accela support 101-410-1520-43210 Telephone 427 900 690 76.67%Roseville IT Phone and VPN access. 101-410-1520-43310 Mileage - 50 - 0.00% 101-410-1520-44330 Dues & Subscriptions 170 670 170 25.37% 101-410-1520-44370 Conferences & Training - 500 254 50.80%MNGFOA and Govt. Acctg. Courses. Total Charges and Services 30,056$ 31,721$ 145,827$ 459.72% Miscellaneous 101-410-1520-44300 Miscellaneous 1,627 220 1,052 478.18%CAFR Cert. Program and ICMA pmt. Total Miscellaneous 1,627$ 220$ 1,052$ 478.18% 1520 Total Finance 130,869$ 124,838$ 220,852$ 176.91% 1910 Planning & Zoning Personnel101-410-1910-41010 Full-time Salaries 149,034 145,407 125,119 86.05% 101-410-1910-41030 Part-time Salaries - - - #DIV/0!101-410-1910-41210 PERA Contributions 11,211 10,906 9,353 85.76% 101-410-1910-41220 FICA Contributions 9,075 9,015 7,367 81.72% 101-410-1910-41230 Medicare Contributions 2,122 2,109 1,723 81.70% 101-410-1910-41300 Insurance 23,249 25,772 22,969 89.12%101-410-1910-41510 Workers Compensation 415 750 658 87.70% Total Personnel 195,105$ 193,959$ 167,189$ 86.20% Materials and Supplies 101-410-1910-42000 Office Supplies 810 1,800 186 10.33%101-410-1910-42030 Printed Forms - 500 - 0.00% Total Materials and Supplies 810$ 2,300$ 186$ 8.09% Charges and Services 101-410-1910-43020 Comprehensive Planning - - 26,530 #DIV/0!Comp Plan - $90K - 60/40 split 2017/2018101-410-1910-43030 Engineering Services 18,688 12,000 6,541 54.51% CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 5 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 101-410-1910-43150 Contract Services 25,133 113,500 5,826 5.13%Sambatech101-410-1910-43190 Software Programs - - 407 #DIV/0!ACAD. 101-410-1910-43210 Telephone 775 1,020 546 53.53%101-410-1910-43220 Postage 6 150 59 39.33% 101-410-1910-43310 Mileage 342 150 103 68.67% 101-410-1910-43510 Legal Publishing - - 840 #DIV/0! 101-410-1910-44330 Dues & Subscriptions 617 390 - 0.00% 101-410-1910-44350 Books - 175 - 0.00% 101-410-1910-44370 Conferences & Training 1,520 1,560 375 24.04%APA - $2160 - Mankato Total Charges and Services 47,081$ 128,945$ 41,227$ 31.97% Miscellaneous101-410-1910-44300 Miscellaneous 31 300 10 3.33% Total Miscellaneous 31$ 300$ 10$ 3.33% 1910 Total Planning & Zoning 243,027$ 325,504$ 208,612$ 64.09% 1930 Engineering Services Charges and Services 101-410-1930-43030 Engineering Services 34,034 36,000 18,097 50.27% 101-410-1930-43210 Telephone 195 - 107 #DIV/0!Roseville IT costs Total Charges and Services 34,229$ 36,000$ 18,204$ 50.57% 1930 Total Engineering Services 34,229$ 36,000$ 18,204$ 50.57% 1940 City Hall Materials and Supplies 101-410-1940-42110 Cleaning Supplies - 50 - 0.00%101-410-1940-42230 Building Repair Supplies 4 300 550 183.33%Menard's charges Total Materials and Supplies 4$ 350$ 550$ 157.14% Charges and Services 101-410-1940-43180 Information Technology/Web - - 185 #DIV/0!Roseville IT costs. 101-410-1940-43210 Telephone 614 900 438 48.67% 101-410-1940-43810 Utilities 3,851 6,500 2,583 39.74%101-410-1940-43840 Refuse 1,129 1,355 1,074 79.26% 101-410-1940-44010 Repairs/Maint Contractual Bldg 21,350 6,000 6,683 111.38%Cleaning service and maintenance supplies.101-410-1940-44040 Repairs/Maint Contractual Eqpt 11,365 15,540 8,978 57.77%New copier lease 101-410-1940-44120 Rentals - Building 30,147 31,992 26,660 83.33%10 months paid through September Total Charges and Services 68,457$ 62,287$ 46,601$ 74.82% Miscellaneous 101-410-1940-44300 Miscellaneous 1,981 1,016 501 49.31% Total Miscellaneous 1,981$ 1,016$ 501$ 49.31% 1940 Total City Hall 70,442$ 63,653$ 47,652$ 74.86% 2100 PoliceCharges and Services 101-420-2100-43150 Law Enforcement Contract 536,330 618,357 290,876 47.04%2nd half paid in December101-420-2100-44300 Misc. - Community Event - 1,000 1,800 180.00% Total Charges and Services 536,330$ 619,357$ 292,676$ 47.25% 2100 Total Police 536,330$ 619,357$ 292,676$ 47.25% CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 6 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 2150 ProsecutionCharges and Services 101-420-2150-43045 Attorney Criminal 44,144 43,200 25,169 58.26% Total Charges and Services 44,144$ 43,200$ 25,169$ 58.26% 2150 Total Prosecution 44,144$ 43,200$ 25,169$ 58.26% 2220 Fire Personnel 101-420-2220-41010 Full-time Salaries 71,918 72,970 59,802 81.95% 101-420-2220-41030 Part-time Salaries 96,663 97,724 67,638 69.21%Includes PT Fire Admin, POC and Chaplain. 101-420-2220-41210 PERA Contributions 14,699 11,821 12,463 105.43% 101-420-2220-41220 FICA Contributions 6,038 6,059 4,194 69.22% 101-420-2220-41230 Medicare Contributions 2,364 2,475 1,780 71.92% 101-420-2220-41300 Insurance 13,673 14,993 12,336 82.28% 101-420-2220-41510 Workers Compensation 12,879 15,000 16,687 111.24% Total Personnel 218,234$ 221,042$ 174,900$ 79.13% Materials and Supplies 101-420-2220-42000 Office Supplies 1,444 1,850 1,298 70.16% 101-420-2220-42080 EMS Supplies 888 5,800 3,819 65.85% 101-420-2220-42090 Fire Prevention 722 3,000 - 0.00% 101-420-2220-42120 Fuel, Oil and Fluids 7,644 11,000 4,748 43.16% 101-420-2220-42400 Small Tools & Equipment 10,539 11,700 5,942 50.79% Total Materials and Supplies 21,237$ 33,350$ 15,807$ 47.40% Charges and Services 101-420-2220-43050 Physicals 4,221 2,400 3,180 132.50%Increased budget for 2018 for staffing change. 101-420-2220-43210 Telephone 3,682 4,200 2,868 68.29% 101-420-2220-43230 Radio 18,917 22,018 12,625 57.34%User fees, pager repair, insurance. 101-420-2220-43310 Mileage 814 500 - 0.00% 101-420-2220-43630 Insurance 7,290 8,300 7,571 91.22%Annual payment completed 101-420-2220-43810 Utility 9,520 15,500 9,996 64.49% 101-420-2220-43840 Refuse 2,948 2,400 2,531 105.46%Increased budget for 2018 based on history. 101-420-2220-44010 Repairs/Maint Bldg 17,938 7,800 7,519 96.40% 101-420-2220-44040 Repairs/Maint Eqpt 41,975 22,967 35,543 154.76%Tanker 1, 2 and E2 repairs. 101-420-2220-44170 Uniforms 5,255 2,500 3,750 150.00%Increased budget for 2018. 101-420-2220-44330 Dues & Subscriptions 3,275 3,733 2,955 79.16% 101-420-2220-44350 Books 230 220 180 81.82% 101-420-2220-44370 Conferences & Training 17,663 19,891 10,504 52.81% Total Charges and Services 133,727$ 112,429$ 99,223$ 88.25% Capital Outlay 101-420-2220-45500 Vehicle - - 64 #DIV/0! Total Capital Outlay -$ -$ 64$ #DIV/0! Miscellaneous101-420-2220-44300 Miscellaneous 2,290 2,000 1,125 56.25% Total Miscellaneous 2,290$ 2,000$ 1,125$ 56.25% 2220 Total Fire 375,488$ 368,821$ 291,118$ 78.93% 2250 Fire Relief Charges and Services 101-420-2250-44920 Fire State Aid 59,136 47,000 - 0.00%Relief Assoc. pass through in Oct./Nov. Total Charges and Services 59,136$ 47,000$ -$ 0.00% CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 7 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 2250 Total Fire Relief 59,136$ 47,000$ -$ 0.00% 2400 Building Inspection Personnel 101-420-2400-41010 Full-time Salaries 167,498 232,801 199,023 85.49% 101-420-2400-41210 PERA Contributions 12,102 15,132 14,927 98.65% 101-420-2400-41220 FICA Contributions 10,062 14,434 12,340 85.49% 101-420-2400-41230 Medicare Contributions 2,353 3,376 2,886 85.49% 101-420-2400-41300 Insurance 24,554 42,432 40,555 95.58% 101-420-2400-41510 Workers Compensation 1,260 4,800 794 16.53% Total Personnel 217,830$ 312,975$ 270,525$ 86.44% Materials and Supplies 101-420-2400-42000 Office Supplies 1,602 1,750 1,641 93.77% 101-420-2400-42030 Printed Forms - 350 - 0.00% 101-420-2400-42120 Fuel, Oil and Fluids 521 3,600 2,086 57.94% Total Materials and Supplies 2,122$ 5,700$ 3,727$ 65.39% Charges and Services 101-420-2400-43030 Engineering 2,465 6,000 248 4.13%Handled in-house by Bldg. Official 101-420-2400-43180 Information Technology/Web 6,010 - 5,674 #DIV/0!i-pads and PermitWorks 101-420-2400-43210 Telephone 1,912 1,800 1,911 106.17%Increased budget in 2018. 101-420-2400-43630 Insurance 178 400 185 46.22% 101-420-2400-44040 Repairs/Maint Eqpt 965 1,000 786 78.58% 101-420-2400-44170 Uniforms 80 1,200 684 57.00%Jackets, shirts, ID's 101-420-2400-44330 Dues & Subscriptions 185 740 310 41.89% 101-420-2400-44350 Books 870 500 345 69.09% 101-420-2400-44370 Conferences & Training 2,596 4,825 870 18.03% Total Charges and Services 15,261$ 16,465$ 11,013$ 66.88% Miscellaneous 101-420-2400-44300 Miscellaneous 266 845 3,793 448.82%Land survey Total Miscellaneous 266$ 845$ 3,793$ 448.82% 2400 Total Building Inspection 235,479$ 335,985$ 289,057$ 86.03% 2500 Emergency Communications Charges and Services 101-420-2500-43150 Contract Services 4,945 5,395 900 16.68%Replace Pole for 2017 Proj. Total Charges and Services 4,945$ 5,395$ 900$ 16.68% 2500 Total Emergency Communications 4,945$ 5,395$ 900$ 16.68% 2700 Animal ControlCharges and Services 101-420-2700-43150 Contract Services 3,086 7,725 6,112 79.12% Total Charges and Services 3,086$ 7,725$ 6,112$ 79.12% 2700 Total Animal Control 3,086$ 7,725$ 6,112$ 79.12% 3100 Public Works Personnel 101-430-3100-41010 Full-time Salaries 253,303 238,857 218,227 91.36%On call pay in 2017 and salary allocations 101-430-3100-41030 Part-time Salaries - 9,680 3,395 35.07% CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 8 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 101-430-3100-41210 PERA Contributions 18,494 18,640 16,232 87.08%101-430-3100-41220 FICA Contributions 15,066 13,312 13,381 100.52% 101-430-3100-41230 Medicare Contributions 3,524 3,604 3,130 86.85%101-430-3100-41300 Insurance 44,655 42,141 47,064 111.68% 101-430-3100-41510 Workers Compensation 12,028 14,000 14,990 107.07% Total Personnel 347,071$ 340,234$ 316,419$ 93.00% Materials and Supplies101-430-3100-42000 Office Supplies 1,666 2,000 598 29.90% 101-430-3100-42120 Fuel, Oil and Fluids 24,049 30,000 20,296 67.65%101-430-3100-42150 Operating Supplies 2,431 3,000 2,017 67.23% 101-430-3100-42210 Repair/Maint. Supplies 3,964 10,350 6,980 67.44%101-430-3100-42240 Street Maintenance & Landscaping - Materials 16,112 445,000 206,229 46.34% 101-430-3100-42250 Street Maintenance 258,223 - 12,775 #DIV/0!Sealcoat, Crackfill, Mill/overlay 101-430-3120-42260 Street Signs 2,389 3,000 3,404 113.47%Sign posts and sign materials 101-430-3125-42290 Sand/Salt 49,616 65,000 74,202 114.16%No purchases needed for rest of 2017. 101-430-3100-42400 Small Tools & Minor Equipment 2,788 3,000 3,633 121.10%Tools and post driver. 101-430-3100-44375 Personal Protection Equipment 1,465 2,400 1,498 62.42% Total Materials and Supplies 362,703$ 563,750$ 331,632$ 58.83% Charges and Services101-430-3100-43030 Engineering Services 4,676 4,800 1,886 39.29% 101-430-3100-43150 Contract Services 24,156 24,350 16,584 68.11% 101-430-3100-43210 Telephone 7,347 7,800 4,942 63.36% 101-430-3100-43230 Radio 1,236 1,300 600 46.15% 101-430-3100-43630 Insurance 15,105 17,000 15,688 92.28%Annual payment completed 101-430-3100-43810 Utilities 34,935 54,400 38,367 70.53% 101-430-3100-43840 Refuse 2,407 2,625 1,395 53.14% 101-430-3100-44010 Repairs/Maint Bldg.10,996 4,000 8,143 203.58%Feeder hose, building repairs. 101-430-3100-44030 Repairs/Maint Imp Other Than Bldg.165 500 1,203 240.60%Spill kits, V-box, pressure washer parts. 101-430-3100-44040 Repairs/Maint Equip 25,364 20,900 9,369 44.83% 101-430-3100-44170 Uniforms 5,886 5,000 4,925 98.50%Increased budget in 2018 101-430-3100-44330 Dues & Subscriptions 294 600 498 83.00% 101-430-3100-44370 Conferences & Training 3,889 4,800 2,092 43.58% 101-430-3100-44380 Clean-up Days 9,557 10,212 14,256 139.60%No more costs in 2017 and doesn't include staff. Total Charges and Services 146,012$ 158,287$ 119,948$ 75.78% Miscellaneous 101-430-3100-44300 Miscellaneous 762 1,450 631 43.52%Asset Management subscription. Total Miscellaneous 762$ 1,450$ 631$ 43.52% 3100 Total Public Works 856,548$ 1,063,721$ 768,630$ 72.26% 5200 Parks & RecreationPersonnel 101-450-5200-41010 Full-time Salaries 70,421 77,429 43,048 55.60%Allocations between PW, PR and utilities.101-450-5200-41030 Part-time Salaries 30,934 48,000 20,969 43.69% 101-450-5200-41210 PERA Contributions 5,798 6,162 3,351 54.38%101-450-5200-41220 FICA Contributions 6,027 7,777 3,835 49.31% 101-450-5200-41230 Medicare Contributions 1,410 1,819 897 49.31% 101-450-5200-41300 Insurance 18,232 19,992 16,197 81.02% 101-450-5200-41510 Workers Compensation 3,735 4,000 3,956 98.89% Total Personnel 136,556$ 165,179$ 92,253$ 55.85% Materials and Supplies101-450-5200-42000 Office Supplies 60 900 304 33.78% 101-450-5200-42150 Operating Supplies 1,338 - 140 #DIV/0! CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 9 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 101-450-5200-42160 Chemicals 1,057 1,500 576 38.40%101-450-5200-42210 Repair/Maint. Supplies 4,505 6,000 3,654 60.90% 101-450-5200-42230 Building Repair Supplies 619 500 100 19.90%101-450-5200-42400 Small Tools & Minor Equipment 2,365 2,150 2,415 112.33%Tools and 55 gallon sprayer. Total Materials and Supplies 9,944$ 11,050$ 7,188$ 65.05% Charges and Services 101-450-5200-43210 Telephone 1,358 1,200 720 60.00%101-450-5200-43630 Insurance 3,079 3,800 3,198 84.15% 101-450-5200-43810 Utilities 6,446 9,600 6,338 66.02%101-450-5200-43840 Refuse 20 1,000 1,106 110.60% 101-450-5200-44010 Repairs/Maint Bldg 63 1,800 130 7.22% 101-450-5200-44030 Repairs/Maint Imp Not Bldgs 2,959 3,000 6,281 209.37%Tennis nets and playground mulch. 101-450-5200-44040 Repairs/Maint Eqpt 2,235 1,500 184 12.27% 101-450-5200-44120 Rentals - Buildings 6,476 6,000 4,384 73.07% 101-450-5200-44170 Uniforms 67 - 58 #DIV/0! 101-450-5200-44301 Events - 5,000 450 9.00% 101-450-5200-44302 Lakes - 40,000 4,578 11.44% 101-450-5200-43150 Contract Services - - 600 #DIV/0! 101-450-5200-44370 Conferences & Training - - - #DIV/0! 101-450-5200-44130 Equipment Rental - - - #DIV/0! 101-450-5200-44375 Personal Protection Equipment 341 1,200 1,209 100.75% Total Charges and Services 23,044$ 74,100$ 29,236$ 39.45% Miscellaneous101-450-5200-44300 Miscellaneous 521 1,200 266 22.16% Total Miscellaneous 521$ 1,200$ 266$ 22.16% 5200 Total Parks & Recreation 170,065$ 251,529$ 128,943$ 51.26% 9000 Compensation Adjustment Personnel 101-460-9000-41010 Compensation Adjustment - 35,000 - 0.00%Incl. in personnel costs for '17 now. Total Personnel -$ 35,000$ -$ 0.00% 9000 Total Compensation Adjustment -$ 35,000$ -$ 0.00% Total General Fund Expenditures:3,575,683$ 3,951,386$ 2,738,139$ 69.30% Total Gen Fund Revs. Over/(Under) Expenditures:800,672$ -$ 295,336$ #DIV/0! 601 Water Fund Water Fund Revenues: 601-000-0000-33422 PERA Pension Revenue 525 - - #DIV/0! 601-000-0000-33426 Miscellaneous State Grants 3,433,298 - - #DIV/0! 601-000-0000-36100 Special Assessments 11,334 16,950 9,320 54.99%2nd half in December 601-000-0000-36205 Refunds and Reimbursements - - 62 #DIV/0! 601-000-0000-36210 Interest on Investments 13,987 20,000 - 0.00%Done at audit. 601-000-0000-37100 Water Sales 275,019 543,689 360,314 66.27% 601-000-0000-37120 Bulk Water 5,423 2,000 448 22.40% 601-000-0000-37140 Water Access Revenue 979,500 1,509,000 1,231,400 81.60% 601-000-0000-37150 Water Connections - Municipal 244,500 369,000 338,147 91.64% 601-000-0000-37170 Meter Sales 244,260 68,000 90,867 133.63% 601-000-0000-37180 Tower Rent 52,526 - - #DIV/0!Moved to G.F for 2017 CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 10 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 601-000-0000-39210 Transfer In (59,872) - - #DIV/0! Total Water Fund Revenues:5,200,500$ 2,528,639$ 2,030,558$ 80.30% Water Fund Expenses: Personnel 601-494-9400-41010 Full-time Salaries 127,902 144,184 88,793 61.58%On call pay of $1667 and salary allocations. 601-494-9400-41210 PERA Contributions 15,792 10,814 6,652 61.51% 601-494-9400-41220 FICA Contributions 7,346 9,012 5,322 59.05%601-494-9400-41230 Medicare Contributions 1,718 2,091 1,245 59.54% 601-494-9400-41300 Insurance 29,467 28,837 14,429 50.04%601-494-9400-41510 Workers Compensation 1,904 5,767 3,980 69.01% Total Personnel 184,130$ 200,705$ 120,421$ 60.00% Materials and Supplies 601-494-9400-42000 Office Supplies 771 700 579 82.71% 601-494-9400-42030 Printed Forms 499 750 247 32.93% 601-494-9400-42160 Chemicals 3,157 13,000 3,587 27.59%601-494-9400-42210 Repair/Maint. Supplies 25,014 25,000 2,080 8.32% 601-494-9400-42300 Water Meters & Supplies 105,477 85,000 117,435 138.16%Replace 200 meters but order 250.601-494-9400-42400 Small Tools & Minor Equipment 3,955 5,000 1,908 38.16% Total Materials and Supplies 138,874$ 129,450$ 125,836$ 97.21% Charges and Services 601-494-9400-43030 Engineering Services - 20,000 14,909 74.55% 601-494-9400-43040 Legal Services 2,323 5,000 93,738 1874.76%3M litigation moved from General Fund. 601-494-9400-43150 Contract Services 7,459 14,000 20,622 147.30%Wellhead protection and Acctg. 10% 601-494-9400-43180 Software Support 5,556 9,600 10,088 105.09% IT costs allocated from General Fund. 601-494-9400-43210 Telephone 793 800 504 63.00%601-494-9400-43220 Postage 1,800 1,880 (1,322) -70.32% 601-494-9400-43310 Mileage 189 - - #DIV/0!601-494-9400-43610 Insurance 8,975 10,000 9,322 93.22%Annual payment completed 601-494-9400-43810 Electric Utility 34,392 30,000 35,523 118.41%Increased budget for 2018.601-494-9400-43820 Water Utility 144,932 - 177,093 #DIV/0!Agreement ends w/ City of Oakdale in 2018. 601-494-9400-44030 Repairs\Maint Imp Not Bldgs 8,617 10,000 4,735 47.35%601-494-9400-44370 Conferences & Training 103 1,500 1,118 74.53% Total Charges and Services 215,140$ 102,780$ 366,330$ 356.42% Capital Outlay 601-494-9400-45300 Improvments Other Than Bldgs - - 22,430 #DIV/0!Well #1 pump rebuild. Total Capital Outlay -$ -$ 22,430$ #DIV/0! Miscellaneous and Non-operating 601-494-9400-43320 Depreciation Expense 612,353 598,971 - 0.00%Done at audit. 601-494-9400-44300 Miscellaneous 3,178 2,000 2,423 121.15% 601-494-9400-46010 Bond Principal - - 279,663 #DIV/0! 601-494-9400-46110 Bond Interest 241,142 273,321 235,319 86.10%601-494-9400-46200 Fiscal Agent Fees - Bond Payments 16,014 800 180 22.50% 601-494-9400-46250 Fiscal Agent Fees - Bond Issuance - 53,811 - 0.00%601-494-9400-47200 Transfer Out 40,427 - - #DIV/0! Total Misc. and Non-operating 913,113$ 928,903$ 517,584$ 55.72% Total Water Fund Expenses:1,451,257$ 1,361,838$ 1,152,601$ 84.64% Total Water Fund Revs. Over/(Under) Expenses:3,749,243$ 1,166,801$ 877,957$ 75.24% 602 Sewer Fund CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 11 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments Sewer Fund Revenues: 602-000-0000-36100 Special Assessments 21,073 62,133 33,535 53.97%2nd half in December. 602-000-0000-36210 Interest on Investments 14,584 12,699 - 0.00%Done at audit. 602-000-0000-37200 Sewer Sales 120,974 177,228 96,416 54.40% 602-000-0000-37220 SAC Early Pay discount/revenue 8,474 - 5,168 #DIV/0! 602-000-0000-37240 Sewer Connecton Fee Revenue 803,000 1,462,000 1,267,620 86.70%SAC 602-000-0000-37260 Sewer Connection Fees Municipal 383,500 466,500 388,480 83.28% Total Sewer Fund Revenues:1,351,605$ 2,180,560$ 1,791,219$ 82.14% Sewer Fund Expenses: Personnel 602-495-9450-41010 Full-time Salaries 39,678 65,606 21,398 32.62%On call pay and salary allocations. 602-495-9450-41210 PERA Contributions 4,270 4,920 1,600 32.52% 602-495-9450-41220 FICA Contributions 1,987 4,068 1,282 31.51% 602-495-9450-41230 Medicare Contributions 464 951 300 31.54% 602-495-9450-41300 Insurance 8,352 13,121 5,342 40.71% 602-495-9450-41510 Workers Compensation 989 2,625 2,004 76.36% Total Personnel 55,739$ 91,291$ 31,926$ 34.97% Materials and Supplies 602-495-9450-42270 Repair/Maint. Supplies 5,873 1,000 1,214 121.40%Increased budget in 2018. 602-495-9450-42400 Small Tools & Minor Equipment 2,860 500 2,344 468.72%Hydrant diffuser and valve wrench. Total Materials and Supplies 8,732$ 1,500$ 3,558$ 237.17% Charges and Services 602-495-9450-43030 Engineering Services - 20,000 4,429 22.14% 602-495-9450-43150 Contract Services 8,059 5,000 32,200 644.01%Gopher State One and Acctg contract allocation. 602-495-9450-43180 Software Support 4,591 6,000 10,088 168.14%IT costs 602-495-9450-43210 Telephone 1,008 1,500 828 55.20% 602-495-9450-43220 Postage - 1,175 - 0.00% 602-495-9450-43310 Mileage - 100 - 0.00% 602-495-9450-43610 Insurance 581 2,000 603 30.17% 602-495-9450-43810 Electric Utility 5,125 5,000 3,985 79.70% 602-495-9450-43820 Sewer Utility - Met Council 16,621 44,514 34,814 78.21% 602-495-9450-44030 Repairs\Maint Imp Not Bldgs 1,391 1,200 31,835 2652.92%LE Ave Forcemain Repair. 602-495-9450-44370 Conferences & Training 80 1,500 3,285 219.00% Total Charges and Services 37,456$ 87,989$ 122,068$ 138.73% Miscellaneous and Non-operating 602-495-9450-43320 Depreciation Expense 132,265 86,561 - 0.00%Done at audit. 602-495-9450-44300 Miscellaneous Expenses 26,036 300 310 103.33% 602-495-9450-46010 Bond Principal - - 220,000 #DIV/0! 602-495-9450-46110 Bond Interest 116,715 85,337 124,318 145.68% 602-495-9450-46250 Fiscal Agent Fees 3,707 42,313 - 0.00% 602-495-9450-47200 Transfer Out 102,678 - - #DIV/0! Total Misc. and Non-operating 381,401$ 214,511$ 344,628$ 160.66% Total Sewer Fund Expenses:483,328$ 395,291$ 502,179$ 127.04% Total Sewer Fund Revs. Over/(Under) Expenses:868,277$ 1,785,269$ 1,289,039$ 72.20% 603 Storm Water Fund Storm Water Fund Revenues: 603-000-0000-36100 Special Assessments - 5,000 - 0.00%2nd half in December. CITY OF LAKE ELMO SEPTEMBER 30, 2017 FINANCIAL STATEMENTS General Fund and Utility Funds 12 2016 2017 2017 2017 Account Number Description Actual Adopted YTD - Sept. 30 Percent Used Comments 603-000-0000-36210 Interest on Investment 15,933 2,603 - 0.00%Done at audit.603-000-0000-37100 Surface Water Utility Sales 185,858 282,360 185,598 65.73% 603-000-0000-37140 SW Review Fee Revenue 27,375 29,375 29,350 99.91% Total Storm Water Fund Revenues:229,166$ 319,338$ 214,948$ 67.31% Storm Water Fund Expenses: Personnel 603-496-9500-41010 Full-time Salaries 20,591 36,630 10,174 27.78%Salary allocations. 603-496-9500-41210 PERA Contributions 2,408 2,747 756 27.52% 603-496-9500-41220 FICA Contributions 1,129 2,271 602 26.49%603-496-9500-41230 Medicare Contributions 264 531 141 26.49% 603-496-9500-41300 Insurance 5,856 7,326 5,165 70.50%603-496-9500-41510 Workers' Compensation - 1,465 1,150 78.52% Total Personnel 30,247$ 50,970$ 17,988$ 35.29% Materials and Supplies 603-496-9500-42000 Office Supplies 499 500 247 49.40%603-496-9500-42270 Repair/Maint. Maint Supplies 3,972 1,000 44 4.45% 603-496-9500-42400 Small Tools & Minor Equipment - 1,000 329 32.90% Total Materials and Supplies 4,471$ 2,500$ 620$ 24.82% Charges and Services 603-496-9500-43030 Engineering Services 11,827 20,000 4,875 24.38% 603-496-9500-43150 Contract Services 2,400 10,000 7,270 72.70%Acctg Contract - 5% 603-496-9500-43180 Software Support 4,067 8,400 5,426 64.60%IT cost allocation too. 603-496-9500-43220 Postage 1,800 1,645 - 0.00% 603-496-9500-43610 Insurance - 1,500 - 0.00% 603-496-9500-44010 Street Sweeping 10,318 20,000 14,842 74.21%603-496-9500-44030 Repairs/Maint Not Bldg 1,368 3,000 - 0.00% 603-496-9500-44370 Conferences & Training 2,500 2,500 1,250 50.00% Total Charges and Services 34,280$ 67,045$ 33,662$ 50.21% Capital Outlay 603-496-9500-45300 Improvements Other Than Bldgs - 20,000 - 0.00% Total Capital Outlay -$ 20,000$ -$ 0.00% Miscellaneous and Non-operating 603-496-9500-43320 Depreciation Expense 15,963 85,090 - 0.00%Done at audit. 603-496-9500-44300 Miscellaneous Expenses 20,577 400 677 169.25% 603-496-9500-46010 Bond Principal - - - #DIV/0! 603-496-9500-46110 Bond Interest 44,765 62,171 62,171 100.00% Total Misc. and Non-operating 81,305$ 147,661$ 62,848$ 42.56% Total Storm Water Fund Expenses:150,303$ 288,176$ 115,119$ 39.95% Total Storm Water Fund Revs. Over/(Under) Expenses:78,863$ 31,162$ 99,829$ 320.36% STAFF REPORT DATE: November 7, 2017 CONSENT #5 AGENDA ITEM: Lake Elmo Baseball Association’s Donation TO: Mayor and City Council SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: State statute requires that cities accept donations via resolution. The Lake Elmo Baseball Association has donated $5,400 to the City of Lake Elmo to be used for the expansion of the baselines at Lion’s Park to 75 feet. ISSUE BEFORE COUNCIL: Should Council accept the donation of $5,400 from the Lake Elmo Baseball Association? PROPOSAL: The Lake Elmo Baseball Association donated $5,400 so that the baselines could be extended from the typical 60 feet to 75 feet at Lions’ Park. The Council approved the change order at the October 3, 2017 meeting. FISCAL IMPACT: The donation covers the cost of the change order. If costs come in less than the change order, the left over funds would be returned to Lake Elmo Baseball per the monetary donation form (attached). OPTIONS: 1) Approve Resolution No 2017-128 2) Amend and then Approve Resolution No 2017-128 3) Don not accept the donation from the Lake Elmo Baseball Association RECOMMENDATION: Motion to approve Resolution No 2017-128 ATTACHMENTS: • Resolution No 2017-128 • Monetary Donation Form CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-128 A RESOLUTION ACCEPTING DONATED FUNDS FROM THE LAKE ELMO BASEBALL ASSOCIATION WHEREAS, Minnesota Statues Section 465.03 provides that donations to the City be accepted by resolution of the City Council; and WHEREAS, the City is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the Lake Elmo Baseball Association has donated $5,400 to the City of Lake Elmo for baseline extensions at Lions Park; and WHEREAS, the City Council of the City of Lake Elmo agrees that said contribution would be of benefit to the citizens of Lake Elmo; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Elmo, Minnesota, does hereby acknowledges and agrees to accept said donation of $5,400 from the Lake Elmo Baseball Association on behalf of the citizens of Lake Elmo. BE IT FURTHER RESOLVED that the City Council of the City of Lake Elmo designates the funds should be allocated only for baseline extensions at Lions Park. Any remaining funds will be returned to Lake Elmo Baseball. APPROVED by the Lake Elmo City Council on this 7th day of November, 2017. By: __________________________ Mike Pearson Mayor ATTEST: ________________________________ Julie Johnson City Clerk STAFF REPORT DATE: November 7, 2017 CONSENT ITEM #6 RESOLUTION - #2017-119 TO: City Council FROM: Brian A. Swanson – Finance Director Amy LaBelle - Accountant AGENDA ITEM: Authorize Certification of Delinquent Storm Water Utility Bills REVIEWED BY: Kristina Handt – City Administrator BACKGROUND: Annually, Storm Water utility bills are sent to property owners who receive this utility service. In addition, past practice is that delinquent property owners are sent another notice stating payment is due. Based upon this, delinquent property owners have until November 27, 2017 to make payment in full. For those amounts that remain unpaid, the City of Lake Elmo has authority under Minnesota State Statute 444.075, subdivision 3, to certify the delinquent balance to the property owner. For those property owners to be certified, the City prepares an assessment roll, and sends it to Washington County in November 2017. Upon receipt, Washington County will then certify the amount to the property owner as part of their property taxes for payment in 2018. QUESTIONS BEFORE THE CITY COUNCIL: 1) Does the City Council approve of certifying delinquent storm water amounts to Washington County for payment on the 2018 property taxes? DISCUSSION: The Storm Water Fund is one of three utility funds the City operates, which are enterprise funds and therefore meant to operate similar to a business enterprise. As such, utility rates are reviewed on a regular basis and are set based on full and timely payment. The certification process is a tool that enables the City to receive payment for the storm water services it provides for those accounts that become delinquent. For storm water, all parcels in the City are charged a fee, which varies by property type. FISCAL IMPACT: As of November 1, 2017, the number of properties that will be certified for storm water is 368 for a total of $39,609.41. As payments continue to be made this number will decrease until the cutoff date of November 27, 2017. For reference, below are the certified number of accounts and amounts for the last 3 years based on tax year for storm water: Pay 2017: Number of accounts: 154 – Amount: $14,430.87 Pay 2016: Number of accounts: 182 – Amount: $16,903.66 Pay 2015: Number of accounts: 198 – Amount: $22,667.47 RECOMMENDATION: 1) “Motion to Adopt Resolution No. 2017-119 authorizing certification of delinquent storm water utility bills to be sent to Washington County, MN, which will be assessed on property owners taxes payable in 2018.” ATTACHMENTS: 1) Resolution No. 2017-119 – authorizing certification of delinquent storm water utility bills to be sent to Washington County, MN, which will be assessed on property owners for taxes payable in 2018. 2) Delinquent Storm Water Accounts as of 11-1-17. CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-119 RESOLUTION AUTHORIZING CERTIFICATION OF DELINQUENT STORM WATER UTILITY BILLS TO BE SENT TO WASHINGTON COUNTY, MN, WHICH WILL BE ASSESSED ON PROPERTY OWNERS TAXES PAYABLE IN 2018 WHEREAS, Minn. Stat. 444.075, subdivision. 3, permits certification of unpaid charges to the county auditor for collection with taxes payable; WHEREAS, the Municipal Code for the City of Lake Elmo contains a provision to certify delinquent accounts to the County Auditor for the collection with taxes payable. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE ELMO, MINNESOTA, THAT: 1. The list of delinquent accounts, a copy of which is attached hereto as “Delinquent Storm Water Accounts as of 11-1-17”, and made part hereof, is hereby accepted and shall be certified to the Washington County Auditor for collection with taxes payable. 2. The certified amount shall be payable over a period of one year. 3. The owner of the property may at any time prior to certification to the County Auditor, pay the delinquent storm water amount to the City of Lake Elmo. 4. The City Finance Director shall forthwith transmit information to the County Auditor to be extended on the property tax lists of Washington County. Such delinquent accounts shall be collected and paid over in the same manner as other municipal taxes. ADOPTED, by the Lake Elmo City Council on the 7th day of November, 2017. ______________________________ Mike Pearson Mayor ATTEST: __________________________________ Julie Johnson City Clerk CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00031650-00-0 1402921320024 $ 1,836.42 146.91$ 1,983.33$ 05-00031350-00-9 3402921340004 874.23 69.94 944.17 05-00030060-00-2 3302921440036 832.02 66.56 898.58 05-00000370-00-7 1002921120002 409.39 32.75 442.14 05-00000950-00-3 1502921410001 393.28 31.46 424.74 05-00030820-00-6 1602921420002 346.16 27.69 373.85 05-00024180-00-8 2702921420004 335.79 26.86 362.65 05-00029410-00-3 2702921410003 335.79 26.86 362.65 05-00029420-00-6 2702921140004 335.79 26.86 362.65 05-00029520-00-3 2702921420002 335.79 26.86 362.65 05-00029530-00-6 2702921420003 335.79 26.86 362.65 05-00029580-00-1 2702921430004 335.79 26.86 362.65 05-00029590-00-4 2702921430006 335.79 26.86 362.65 05-00029600-00-4 2702921430006 335.79 26.86 362.65 05-00029610-00-7 2702921430007 335.79 26.86 362.65 05-00029680-00-8 2702921440005 335.79 26.86 362.65 05-00029690-00-1 2702921440006 335.79 26.86 362.65 05-00029700-00-1 2702921440007 335.79 26.86 362.65 05-00029710-00-4 2702921440008 335.79 26.86 362.65 05-00029720-00-7 2702921440009 335.79 26.86 362.65 05-00000420-00-9 1002921420001 251.38 25.00 276.38 05-00000410-00-6 1002921310001 231.07 25.00 256.07 05-00020920-00-0 2202921220014 220.00 25.00 245.00 05-00026990-00-5 0402921330015 182.05 25.00 207.05 05-00027020-00-0 0502921440016 182.05 25.00 207.05 05-00000880-00-5 1402921430001 168.64 25.00 193.64 05-00025630-00-7 3502921340001 165.00 25.00 190.00 05-00027060-00-2 0702920220004 165.00 25.00 190.00 05-00027070-00-5 0702920230010 165.00 25.00 190.00 05-00028300-00-4 1202921140009 165.00 25.00 190.00 05-00028370-00-5 1202921420014 165.00 25.00 190.00 05-00001200-00-8 3302921120003 164.29 25.00 189.29 05-00001180-00-5 3302921110002 164.23 25.00 189.23 05-00001170-00-2 3302921110001 164.19 25.00 189.19 05-00001190-00-8 3302921120001 160.47 25.00 185.47 05-00000960-00-6 1502921420004 157.00 25.00 182.00 05-00000300-00-6 0402921130002 138.16 25.00 163.16 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00013610-00-0 1202921210003 115.50 25.00 140.50 05-00014090-00-1 1202921420028 115.50 25.00 140.50 05-00023920-00-7 2602921110002 115.50 25.00 140.50 05-00026800-00-1 0202921140026 115.50 25.00 140.50 05-00030030-00-3 3602921240001 114.09 25.00 139.09 05-00001330-00-4 3502921430001 113.03 25.00 138.03 05-00000380-00-0 1002921130002 105.36 25.00 130.36 05-00000170-00-3 0202921310005 99.45 25.00 124.45 05-00031810-00-2 0402921140004 97.35 25.00 122.35 05-00029270-00-7 2402921130004 92.65 25.00 117.65 05-00031780-00-6 0102921220002 88.18 25.00 113.18 05-00001320-00-1 3502921420001 88.15 25.00 113.15 05-00000180-00-6 0202921320002 84.13 25.00 109.13 05-00015860-00-7 1302921340025 83.41 25.00 108.41 05-00000350-00-1 0402921410003 76.03 25.00 101.03 05-00002410-00-4 0202921120006 72.05 25.00 97.05 05-00030270-00-9 1302921230046 70.00 25.00 95.00 05-00001340-00-7 3502921440006 69.23 25.00 94.23 05-00030210-00-1 1302921230018 68.61 25.00 93.61 05-00021680-00-6 2402921140007 66.00 25.00 91.00 05-00029840-00-0 2802921140002 62.46 25.00 87.46 05-00024920-00-6 3402921120009 61.05 25.00 86.05 05-00004870-00-8 0402921220020 60.50 25.00 85.50 05-00007180-00-9 0602920310025 60.50 25.00 85.50 05-00012810-00-5 1102921420009 60.50 25.00 85.50 05-00017270-00-6 1502921320032 60.50 25.00 85.50 05-00026760-00-2 0202921140022 60.50 25.00 85.50 05-00030800-00-0 1602921410031 59.48 25.00 84.48 05-00001900-00-7 2802921110010 55.00 25.00 80.00 05-00002090-00-0 0102921230008 55.00 25.00 80.00 05-00002190-00-7 0102921340002 55.00 25.00 80.00 05-00002300-00-4 0102921440020 55.00 25.00 80.00 05-00002350-00-9 0102921440025 55.00 25.00 80.00 05-00002400-00-1 0202921110012 55.00 25.00 80.00 05-00002460-00-9 0202921230001 55.00 25.00 80.00 05-00002590-00-5 0202921410012 55.00 25.00 80.00 05-00002640-00-7 0202921430001 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00002880-00-3 0302921120003 55.00 25.00 80.00 05-00003070-00-3 0302921140009 55.00 25.00 80.00 05-00003150-00-4 0302921210008 55.00 25.00 80.00 05-00003330-00-2 0302921310011 55.00 25.00 80.00 05-00003370-00-4 0302921320003 55.00 25.00 80.00 05-00003510-00-0 0302921320018 55.00 25.00 80.00 05-00003550-00-2 0302921330003 55.00 25.00 80.00 05-00003580-00-1 0302921330006 55.00 25.00 80.00 05-00003710-00-4 0302921340001 55.00 25.00 80.00 05-00003930-00-4 0302921410009 55.00 25.00 80.00 05-00003960-00-3 0302921420004 55.00 25.00 80.00 05-00004010-00-4 0302921420009 55.00 25.00 80.00 05-00004020-00-7 0302921420010 55.00 25.00 80.00 05-00004100-00-8 0302921430010 55.00 25.00 80.00 05-00004240-00-7 0302921440011 55.00 25.00 80.00 05-00004470-00-0 0402921120014 55.00 25.00 80.00 05-00004610-00-6 0402921210011 55.00 25.00 80.00 05-00004720-00-6 0402921220005 55.00 25.00 80.00 05-00004750-00-5 0402921220008 55.00 25.00 80.00 05-00004760-00-8 0402921220009 55.00 25.00 80.00 05-00004990-00-1 0402921230010 55.00 25.00 80.00 05-00005000-00-0 0402921230011 55.00 25.00 80.00 05-00005030-00-9 0402921230015 55.00 25.00 80.00 05-00005450-00-3 0402921330038 55.00 25.00 80.00 05-00005470-00-9 0402921330044 55.00 25.00 80.00 05-00005690-00-9 0402921440017 55.00 25.00 80.00 05-00005810-00-9 0502921110009 55.00 25.00 80.00 05-00005900-00-3 0502921130003 55.00 25.00 80.00 05-00005950-00-8 0502921140006 55.00 25.00 80.00 05-00005980-00-7 0502921140009 55.00 25.00 80.00 05-00006090-00-6 0502921410003 55.00 25.00 80.00 05-00006220-00-9 0502921420014 55.00 25.00 80.00 05-00006300-00-0 0502921420022 55.00 25.00 80.00 05-00006600-00-1 0502921430024 55.00 25.00 80.00 05-00006680-00-5 0502921440005 55.00 25.00 80.00 05-00006830-00-4 0502921440028 55.00 25.00 80.00 05-00006860-00-3 0502921440032 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00007170-00-6 0602920310024 55.00 25.00 80.00 05-00007240-00-4 0602920310032 55.00 25.00 80.00 05-00007490-00-3 0602920320019 55.00 25.00 80.00 05-00007670-00-1 0602920320044 55.00 25.00 80.00 05-00007900-00-1 0602920320067 55.00 25.00 80.00 05-00008120-00-0 0602920330022 55.00 25.00 80.00 05-00008130-00-3 0602920330023 55.00 25.00 80.00 05-00008270-00-2 0802921110011 55.00 25.00 80.00 05-00008490-00-2 0902921110004 55.00 25.00 80.00 05-00008640-00-1 0902921110022 55.00 25.00 80.00 05-00008690-00-6 0902921130004 55.00 25.00 80.00 05-00008950-00-5 0902921220007 55.00 25.00 80.00 05-00008990-00-7 0902921220012 55.00 25.00 80.00 05-00009000-00-6 0902921220013 55.00 25.00 80.00 05-00009010-00-9 0902921220014 55.00 25.00 80.00 05-00009020-00-2 0902921220015 55.00 25.00 80.00 05-00009120-00-9 0902921230006 55.00 25.00 80.00 05-00009400-00-4 0902921310006 55.00 25.00 80.00 05-00009640-00-0 0902921320003 55.00 25.00 80.00 05-00009710-00-8 0902921320010 55.00 25.00 80.00 05-00009880-00-6 0902921320030 55.00 25.00 80.00 05-00010030-00-7 0902921330016 55.00 25.00 80.00 05-00010070-00-9 0902921330020 55.00 25.00 80.00 05-00010200-00-2 0902921340013 55.00 25.00 80.00 05-00010870-00-5 0902921430018 55.00 25.00 80.00 05-00010920-00-7 0902921430023 55.00 25.00 80.00 05-00011140-00-6 0902921440014 55.00 25.00 80.00 05-00011190-00-1 0902921440019 55.00 25.00 80.00 05-00011200-00-1 0902921440020 55.00 25.00 80.00 05-00011240-00-3 0902921440024 55.00 25.00 80.00 05-00011260-00-9 0902921440026 55.00 25.00 80.00 05-00011430-00-4 1002921210015 55.00 25.00 80.00 05-00011730-00-5 1002921220023 55.00 25.00 80.00 05-00011760-00-4 1002921240009 55.00 25.00 80.00 05-00011850-00-8 1002921240020 55.00 25.00 80.00 05-00011950-00-5 1002921310002 55.00 25.00 80.00 05-00012120-00-9 1002921320009 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00012200-00-0 1002921410018 55.00 25.00 80.00 05-00012250-00-5 1002921410003 55.00 25.00 80.00 05-00012310-00-0 1102921140005 55.00 25.00 80.00 05-00012450-00-9 1102921310010 55.00 25.00 80.00 05-00012510-00-4 1102921330004 55.00 25.00 80.00 05-00012800-00-2 1102921420008 55.00 25.00 80.00 05-00012950-00-4 1202921110008 55.00 25.00 80.00 05-00013080-00-9 1202921110021 55.00 25.00 80.00 05-00013090-00-2 1202921110022 55.00 25.00 80.00 05-00013120-00-8 1202921110025 55.00 25.00 80.00 05-00013340-00-8 1202921120020 55.00 25.00 80.00 05-00013400-00-3 1202921130011 55.00 25.00 80.00 05-00013480-00-7 1202921140012 55.00 25.00 80.00 05-00013630-00-6 1202921220005 55.00 25.00 80.00 05-00013830-00-0 1202921410019 55.00 25.00 80.00 05-00013950-00-3 1202921410032 55.00 25.00 80.00 05-00014000-00-4 1202921420019 55.00 25.00 80.00 05-00014120-00-7 1202921420031 55.00 25.00 80.00 05-00014140-00-3 1202921420033 55.00 25.00 80.00 05-00014190-00-8 1202921420038 55.00 25.00 80.00 05-00014320-00-1 1202921430018 55.00 25.00 80.00 05-00014450-00-7 1302921120005 55.00 25.00 80.00 05-00014480-00-6 1302921230008 55.00 25.00 80.00 05-00014620-00-2 1302921230042 55.00 25.00 80.00 05-00015040-00-5 1302921320038 55.00 25.00 80.00 05-00015060-00-1 1302921320040 55.00 25.00 80.00 05-00015290-00-4 1302921320084 55.00 25.00 80.00 05-00015350-00-9 1302921330004 55.00 25.00 80.00 05-00015390-00-1 1302921330009 55.00 25.00 80.00 05-00015450-00-6 1302921330018 55.00 25.00 80.00 05-00015660-00-3 1302921340004 55.00 25.00 80.00 05-00015680-00-9 1302921340007 55.00 25.00 80.00 05-00015760-00-0 1302921340015 55.00 25.00 80.00 05-00015780-00-6 1302921340017 55.00 25.00 80.00 05-00015900-00-6 1302921340029 55.00 25.00 80.00 05-00015970-00-7 1302921430003 55.00 25.00 80.00 05-00015980-00-0 1302921430007 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00016010-00-5 1302921430010 55.00 25.00 80.00 05-00016530-00-6 1402921410012 55.00 25.00 80.00 05-00016570-00-8 1402921410016 55.00 25.00 80.00 05-00016630-00-3 1402921410027 55.00 25.00 80.00 05-00016660-00-2 1402921420002 55.00 25.00 80.00 05-00016760-00-9 1402921440009 55.00 25.00 80.00 05-00016770-00-2 1402921440010 55.00 25.00 80.00 05-00016790-00-8 1402921440012 55.00 25.00 80.00 05-00016870-00-9 1402921440020 55.00 25.00 80.00 05-00016880-00-2 1402921440021 55.00 25.00 80.00 05-00017140-00-0 1502921320033 55.00 25.00 80.00 05-00017170-00-9 1502921320013 55.00 25.00 80.00 05-00017250-00-0 1502921320022 55.00 25.00 80.00 05-00017300-00-2 1502921320027 55.00 25.00 80.00 05-00017370-00-3 1502921330005 55.00 25.00 80.00 05-00017420-00-5 1502921330012 55.00 25.00 80.00 05-00017470-00-0 1502921330018 55.00 25.00 80.00 05-00017480-00-3 1502921330019 55.00 25.00 80.00 05-00017500-00-6 1502921330021 55.00 25.00 80.00 05-00017530-00-5 1502921330027 55.00 25.00 80.00 05-00017560-00-4 1502921330040 55.00 25.00 80.00 05-00017610-00-6 1502921340002 55.00 25.00 80.00 05-00017640-00-5 1502921340006 55.00 25.00 80.00 05-00017660-00-1 1502921420003 55.00 25.00 80.00 05-00017830-00-6 1602921130017 55.00 25.00 80.00 05-00017860-00-5 1602921130020 55.00 25.00 80.00 05-00018090-00-7 1602921140015 55.00 25.00 80.00 05-00018230-00-3 1602921140029 55.00 25.00 80.00 05-00018380-00-5 1602921210008 55.00 25.00 80.00 05-00018490-00-5 1602921210019 55.00 25.00 80.00 05-00018500-00-5 1602921210020 55.00 25.00 80.00 05-00018620-00-8 1602921220011 55.00 25.00 80.00 05-00018800-00-6 1602921220031 55.00 25.00 80.00 05-00018890-00-3 1602921340019 55.00 25.00 80.00 05-00018900-00-3 1602921340020 55.00 25.00 80.00 05-00018950-00-8 1602921410005 55.00 25.00 80.00 05-00019020-00-5 1602921410012 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00019260-00-1 2102921120009 55.00 25.00 80.00 05-00019280-00-7 2102921120011 55.00 25.00 80.00 05-00019360-00-8 2102921120022 55.00 25.00 80.00 05-00019700-00-8 2102921130004 55.00 25.00 80.00 05-00019830-00-4 2102921130019 55.00 25.00 80.00 05-00019880-00-9 2102921140008 55.00 25.00 80.00 05-00020220-00-1 2102921220007 55.00 25.00 80.00 05-00020310-00-5 2102921230006 55.00 25.00 80.00 05-00020320-00-8 2102921230007 55.00 25.00 80.00 05-00020450-00-4 2102921240006 55.00 25.00 80.00 05-00020670-00-4 2102921340004 55.00 25.00 80.00 05-00020732-00-1 2102921340014 55.00 25.00 80.00 05-00020900-00-4 2202921220012 55.00 25.00 80.00 05-00021070-00-1 2302921110004 55.00 25.00 80.00 05-00021140-00-9 2402921110010 55.00 25.00 80.00 05-00021580-00-9 2402921120041 55.00 25.00 80.00 05-00021690-00-9 2402921140008 55.00 25.00 80.00 05-00021700-00-9 2402921140009 55.00 25.00 80.00 05-00021760-00-7 2402921210007 55.00 25.00 80.00 05-00021920-00-9 2402921210024 55.00 25.00 80.00 05-00021980-00-7 2402921220004 55.00 25.00 80.00 05-00022200-00-3 2402921310003 55.00 25.00 80.00 05-00022210-00-6 2402921310004 55.00 25.00 80.00 05-00022260-00-1 2402921310009 55.00 25.00 80.00 05-00022440-00-9 2402921320013 55.00 25.00 80.00 05-00022600-00-1 2402921330012 55.00 25.00 80.00 05-00022790-00-5 2402921420014 55.00 25.00 80.00 05-00022850-00-0 2402921420020 55.00 25.00 80.00 05-00022860-00-3 2402921420021 55.00 25.00 80.00 05-00022930-00-1 2402921430003 55.00 25.00 80.00 05-00022980-00-6 2402921430009 55.00 25.00 80.00 05-00023140-00-7 2402921440004 55.00 25.00 80.00 05-00023280-00-6 2402921440018 55.00 25.00 80.00 05-00023440-00-8 2502921320023 55.00 25.00 80.00 05-00023490-00-3 2502921320029 55.00 25.00 80.00 05-00023540-00-5 2502921330005 55.00 25.00 80.00 05-00023670-00-1 2502921330018 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00023700-00-7 2502921340002 55.00 25.00 80.00 05-00023810-00-7 2502921340013 55.00 25.00 80.00 05-00023930-00-0 2602921330001 55.00 25.00 80.00 05-00023980-00-5 2602921430002 55.00 25.00 80.00 05-00024230-00-0 2702921420013 55.00 25.00 80.00 05-00024480-00-9 2802921120021 55.00 25.00 80.00 05-00024690-00-6 2802921140007 55.00 25.00 80.00 05-00024700-00-6 2802921140008 55.00 25.00 80.00 05-00024830-00-2 2802921440002 55.00 25.00 80.00 05-00024870-00-4 3402921120004 55.00 25.00 80.00 05-00025050-00-1 3402921210014 55.00 25.00 80.00 05-00025100-00-3 3402921220001 55.00 25.00 80.00 05-00025360-00-5 3402921240004 55.00 25.00 80.00 05-00025370-00-8 3402921240005 55.00 25.00 80.00 05-00025530-00-0 3502921110004 55.00 25.00 80.00 05-00025550-00-6 3502921110006 55.00 25.00 80.00 05-00025580-00-5 3502921120003 55.00 25.00 80.00 05-00025590-00-8 3502921120004 55.00 25.00 80.00 05-00025610-00-1 3502921140004 55.00 25.00 80.00 05-00025670-00-9 3502921410005 55.00 25.00 80.00 05-00025750-00-0 3502921420005 55.00 25.00 80.00 05-00025820-00-8 3502921440007 55.00 25.00 80.00 05-00025850-00-7 3602921320007 55.00 25.00 80.00 05-00025960-00-7 0102921110017 55.00 25.00 80.00 05-00026050-00-0 0102921130012 55.00 25.00 80.00 05-00026130-00-1 0102921130021 55.00 25.00 80.00 05-00026220-00-5 0102921130030 55.00 25.00 80.00 05-00026270-00-0 0102921140001 55.00 25.00 80.00 05-00026280-00-3 0102921140004 55.00 25.00 80.00 05-00026420-00-9 0102921140021 55.00 25.00 80.00 05-00026460-00-1 0102921440005 55.00 25.00 80.00 05-00026530-00-9 0202921110006 55.00 25.00 80.00 05-00026720-00-0 0202921140018 55.00 25.00 80.00 05-00026810-00-4 0202921140027 55.00 25.00 80.00 05-00026910-00-1 0302921210007 55.00 25.00 80.00 05-00027030-00-3 0602920310011 55.00 25.00 80.00 05-00027080-00-8 0802921110009 55.00 25.00 80.00 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00027240-00-0 0902921240018 55.00 25.00 80.00 05-00027320-00-1 1002921240002 55.00 25.00 80.00 05-00027350-00-0 1002921240008 55.00 25.00 80.00 05-00027410-00-5 1002921410016 55.00 25.00 80.00 05-00028040-00-5 1102921330018 55.00 25.00 80.00 05-00028060-00-1 1102921330021 55.00 25.00 80.00 05-00028070-00-4 1102921330022 55.00 25.00 80.00 05-00028400-00-1 1202921430013 55.00 25.00 80.00 05-00028410-00-4 1202921430014 55.00 25.00 80.00 05-00028430-00-0 1202921440010 55.00 25.00 80.00 05-00028590-00-5 1302921330003 55.00 25.00 80.00 05-00028750-00-7 1502921310007 55.00 25.00 80.00 05-00028780-00-6 1602921140007 55.00 25.00 80.00 05-00028980-00-0 2202921210017 55.00 25.00 80.00 05-00029000-00-2 2202921210019 55.00 25.00 80.00 05-00029290-00-3 2402921220003 55.00 25.00 80.00 05-00033100-00-8 3402921420013 55.00 25.00 80.00 05-00033110-00-1 3402921420012 55.00 25.00 80.00 05-00033180-00-2 3402921420018 55.00 25.00 80.00 05-00033190-00-5 3402921420007 55.00 25.00 80.00 05-00033220-00-1 3402921420016 55.00 25.00 80.00 05-00033290-00-2 3402921410011 55.00 25.00 80.00 05-00033360-00-0 3402921410014 55.00 25.00 80.00 05-00033550-00-1 3402921420032 55.00 25.00 80.00 05-00034070-00-1 3402921410050 55.00 25.00 80.00 05-00034100-00-7 3402921410053 55.00 25.00 80.00 05-00034110-00-0 3402921410054 55.00 25.00 80.00 05-00038410-00-7 3402921330016 55.00 25.00 80.00 05-00028310-00-7 1202921230002 54.50 25.00 79.50 05-00000830-00-0 1402921310001 53.22 25.00 78.22 05-00008290-00-8 0802921140065 50.00 25.00 75.00 05-00014420-00-8 1202921440016 50.00 25.00 75.00 05-00022910-00-5 2402921430001 50.00 25.00 75.00 05-00023010-00-1 2402921430012 50.00 25.00 75.00 05-00000320-00-2 0402921140005 49.97 25.00 74.97 05-00000840-00-3 1402921310002 46.74 25.00 71.74 05-00028420-00-7 1202921430015 46.25 25.00 71.25 CITY OF LAKE ELMO DELINQUENT STORM WATER ACCOUNTS AS OF NOVEMBER 1, 2017 ACCOUNT PROPERTY ID BALANCE CERT. FEE TOTAL 05-00019990-00-9 2102921210001 45.00 25.00 70.00 05-00031790-00-9 0102921230004 44.83 25.00 69.83 05-00017130-00-7 1502921320004 39.65 25.00 64.65 05-00037000-00-7 3602921320016 38.33 25.00 63.33 05-00000340-00-8 0402921410002 35.92 25.00 60.92 05-00037210-00-4 3602921320036 34.17 25.00 59.17 05-00005320-00-7 0402921330014 32.15 25.00 57.15 05-00006950-00-7 0502921440041 30.00 25.00 55.00 05-00030340-00-7 1302921230063 28.40 25.00 53.40 05-00029970-00-6 3602921120001 22.99 25.00 47.99 05-00030620-00-2 1302921320049 22.68 25.00 47.68 05-00009370-00-8 0902921310002 22.30 25.00 47.30 05-00010420-00-2 0902921410019 21.67 25.00 46.67 05-00027000-00-4 0402921330018 20.19 25.00 45.19 05-00020100-00-8 2102921210014 17.50 25.00 42.50 05-00017540-00-8 1502921330029 17.20 25.00 42.20 05-00026970-00-9 0402921330012 17.04 25.00 42.04 05-00026980-00-2 0402921330013 17.04 25.00 42.04 05-00030690-00-3 1602921410018 16.53 25.00 41.53 05-00008510-00-5 0902921110007 16.40 25.00 41.40 05-00001210-00-1 3302921420002 16.36 25.00 41.36 05-00028840-00-1 1602921340017 14.92 25.00 39.92 05-00012170-00-4 1002921430005 14.38 25.00 39.38 05-00000470-00-4 1102921140003 14.00 25.00 39.00 05-00026380-00-0 0102921140016 13.33 25.00 38.33 05-00022960-00-0 2402921430007 13.03 25.00 38.03 05-00023290-00-9 2402921440019 12.86 25.00 37.86 05-00000890-00-8 1402921440022 12.61 25.00 37.61 05-00009900-00-9 0902921330001 11.96 25.00 36.96 05-00030330-00-4 1302921230062 11.44 25.00 36.44 05-00001310-00-8 3502921340003 11.12 25.00 36.12 05-00015440-00-3 1302921330017 10.03 25.00 35.03 05-00006700-00-8 0502921440007 10.00 25.00 35.00 05-00011780-00-0 1002921240011 10.00 25.00 35.00 05-00015750-00-7 1302921340014 10.00 25.00 35.00 TOTALS:30,158.01$ 9,451.40$ 39,609.41$ STAFF REPORT DATE: November 7, 2017 CONSENT ITEM #: 7 AGENDA ITEM: Approve Annual Public Service Recognition Event, January 2018 SUBMITTED BY: Jake Foster, Assistant City Administrator REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: Per the Employee Recognition Policy adopted in December 2016, an annual event may be held to recognize the public service of City staff, Council members, and members of City committees, commissions and boards. The event must be preapproved by the City Council. An amount not to exceed $500 will be provided for the annual event and must be expended as necessary to achieve the objectives of the City’s Employee Recognition Policies. Immediate family or significant others of City staff, Council members, or members of City committees, commissions or boards may attend the annual recognition event at their own cost. Expenditure of public funds to purchase alcohol for the annual recognition event shall not be permitted. ISSUE BEFORE COUNCIL: Should the Council approve the Annual Public Service Recognition Event to take place in January 2018? PROPOSAL: Staff is seeking Council approval to spend up to $500 for the annual recognition event. The funds would be used for the purchase of food and beverage. The suggested date is Thursday, January 18th at 6:00pm. If approved, staff would work to finalize the details and send out invites. FISCAL IMPACT: $500 from the general fund OPTIONS: 1) Approve $500 for the annual public service recognition event in January 2018 2) Approve a lessor amount for the annual public service recognition event in January 2018 3) Approve a different date for the annual public service recognition event 4) Do not approve the annual recognition event. RECOMMENDATION: If removed from the consent agenda: “Move to approve the Annual Public Service Recognition Event in January 2018 and the expenditure of up to $500.” STAFF REPORT DATE: November 7, 2017 CONSENT ITEM #: 8 TO: Mayor and City Council FROM: Jake Foster, Assistant City Administrator AGENDA ITEM: Adopt the Proposed Resolution 2017-120 to Approve State of MN Master Joint Powers Agreement Authorized Agency, and Court Data Services Subscriber Amendment to CJDN Subscriber Agreement BACKGROUND: The City’s prosecuting attorney firm, Johnson and Turner has requested that the City Council adopt a Resolution 2017-120 approving the State of MN Master Joint Powers Agreement Authorized Agency, and Court Data Services Subscriber Amendment to CJDN Subscriber Agreement. These agreements are required to continue to permit Johnson and Turner to utilize and electronically access court records and court documents through the State’s Criminal Justice Data Communications Network (“CJDN”). ISSUE BEFORE COUNCIL: Should the city adopt the Resolution 2017-120 to approve the State of MN Master Joint Powers Agreement Authorized Agency, and Court Data Services Subscriber Amendment to CJDN Subscriber Agreement? PROPOSAL DETAILS/ANALYSIS: The State of MN Master Joint Powers Agreement Authorized Agency, and Court Data Services Subscriber Amendment to CJDN Subscriber Agreement allow the City’s prosecuting attorney to access court documents electronically on behalf of the City. The City Council has approved these documents before; this request is to reapprove the Master Joint Powers Agreement and the Amendment to the CJDN Subscriber Agreement. FISCAL IMPACT: None RECOMMENDATION: Staff recommends adoption of Resolution 2017-120 to approve the State of MN Master Joint Powers Agreement Authorized Agency, and Court Data Services Subscriber Amendment to CJDN Subscriber Agreement. If this request is removed from the Consent Agenda, the following motion may be used: “Motion to adopt the Resolution 2017-120 to approve the State of MN Master Joint Powers Agreement Authorized Agency, and Court Data Services Subscriber Amendment to CJDN Subscriber Agreement” Resolution 2017-120 CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA RESOLUTION 2017-120 RESOLUTION APPROVING STATE OF MINNESOTA JOINT POWERS AGREEMENTS WITH THE CITY OF LAKE ELMO ON BEHALF OF ITS CITY ATTORNEY AND ARRESTING AGENCY WHEREAS, the City of Lake Elmo on behalf of its Prosecuting Attorney and Arresting Agency desires to enter into Joint Powers Agreements with the State of Minnesota, Department of Public Safety, Bureau of Criminal Apprehension to use systems and tools available over the State’s criminal justice data communications network for which the City is eligible. The Joint Powers Agreements further provide the City with the ability to add, modify and delete connectivity, systems and tools over the five year life of the agreement and obligates the City to pay the costs for the network connection. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota as follows: 1. That the State of Minnesota Joint Powers Agreements by and between the State of Minnesota acting through its Department of Public Safety, Bureau of Criminal Apprehension and the City of Lake Elmo on behalf of its Prosecuting Attorney and Arresting Agency, are hereby approved. 2. That the Washington County Sheriff, William M. Hutton, or his or her successor, is designated the Authorized Representative for the Arresting Agency. The Authorized Representative is also authorized to sign any subsequent amendment or agreement that may be required by the State of Minnesota to maintain the City’s connection to the systems and tools offered by the State. 3. That the City Prosecutor, Sarah B. Sicheneder, or her successor, is designated the Authorized Representative for the Prosecuting Attorney. The Authorized Representative is also authorized to sign any subsequent amendment or agreement that may be required by the State of Minnesota to maintain the City’s connection to the systems and tools offered by the State. To assist the Authorized Representative with the administration of the agreement, Sarah B. Sicheneder, David K. Snyder, or any attorney at Johnson/Turner Legal is appointed as the Authorized Representative’s designee. 4. That Mike Pearson, the Mayor for the City of Lake Elmo, and Julie Johnson, the City Clerk, are authorized to sign the State of Minnesota Joint Powers Agreements. Passed and Adopted by the Council on this _____ day of _________, 2017. Resolution 2017-120 CITY OF LAKE ELMO _________________________________ By: Mike Pearson Its Mayor ATTEST:____________________________________ By: Julie Johnson Its City Clerk STAFF REPORT DATE: November 7, 2017 CONSENT ITEM #: 9 AGENDA ITEM: Central Greenway Regional Trail Technical Advisory Committee SUBMITTED BY: Emily Becker, Planning Director BACKGROUND: The County put together a Request for Proposal (RFP) for the development of a master plan for the Central Greenway Regional Trail: Lake Elmo Segment and is currently under contract negotiations with SRF Consulting Firm. The RFP indicates that a Technical Advisory Committee (TAC) composed of professional staff and citizen representatives who will provide input on the planning of the Trail. The TAC will be formed to assist in the planning process and will include two Washington County Public Works Staff, one Washington County Parks and Open Space Commission Member, one City of Lake Elmo Staff, One City of Lake Elmo City Council, Planning Commission, or Parks Commission member, one Watershed District Staff, one Metropolitan Council Staff, and one Metropolitan Council Parks and Open Space Commission member. SRF Consulting Firm had proposed that there will be at least five TAC meetings plus possible other open houses, pop-up meetings, etc., though these dates and times are unknown. The study should be completed by December 31, 2018. The entire project is projected to take about five years. ISSUE BEFORE COUNCIL: Does the Council approve of the recommended TAC members? PROPOSAL: Staff is recommending that Ben Prchal, City Planner represent City of Lake Elmo Staff and that John Mayek of the Parks Commission represent City of Lake Elmo City Council, Planning Commission or Parks Commission member. FISCAL IMPACT: None OPTIONS: 1) Approve of recommended members to represent City of Lake Elmo on the Central Greenway Regional Trail TAC. 2) Appoint different representative to represent City of Lake Elmo on the Central Greenway Regional Trail TAC. RECOMMENDATION: If removed from the consent agenda: “Move to approve recommended members to represent City of Lake Elmo on the Central Greenway Regional Trail TAC.” ATTACHMENTS: • None STAFF REPORT DATE: November 7, 2017 CONSENT #10 AGENDA ITEM: CSAH 15 (Manning Avenue) and CSAH 14 (Stillwater Blvd) Realignment – Approve Resolution of Support for the Local Road Improvement Program Grant Application SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Chad Isakson, Assistance City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve a Resolution of Support for the Local Road Improvement Program (LRIP) grant application for the City local cost share of the CSAH 15 (Manning Avenue) and CSAH 14 (Stillwater Blvd) Realignment Improvements by Washington County? BACKGROUDN AND PROPOSAL DETAILS/ANALYSIS: As part of Washington County’s Capital Improvement Program, the County intends to reconstruct and realign County State Aid Highway 15 (Manning Avenue) and County State Aid Highway 14 (Stillwater Boulevard) located in the City of Lake Elmo, with said construction to be initiated in 2018. The improvements represent Phase 2 of a multi-phased project for the County State Aid Highway 15 (Manning Avenue) Corridor Management and Safety Improvement Project. The project intends to improve operations and safety along the County Highway 15 corridor by completing intersection improvements and realignments; improving access to several neighborhoods, schools, businesses, the Lake Elmo airport and the County Fairgrounds; improving mobility and direct access between Trunk Highway 36 (an Interregional Corridor route) and I-94; and increasing capacity with a 4-lane expansion to accommodate current and future traffic levels. Traffic and transportation studies have found that the current volume of traffic on County Highway 15 is nearing a point at which a two-lane roadway can no longer operate efficiently and safely. The Phase 1 improvements were constructed in 2016 consisting of the roundabout intersection at CSAH 15 and CSAH 10. FISCAL IMPACT: It is the City’s goal to apply for and secure Local Road Improvement Program (LRIP) grant funding through MnDOT in the amount of $500,000 to be used to pay all of the City’s local share of the project. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, a Resolution supporting the Local Road Improvement Program grant application for the Washington County CSAH 15 (Manning Avenue) and CSAH 14 (Stillwater Blvd) Realignment Improvements. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Resolution No. 2017-121 Supporting the Local Road Improvement Program grant application for the Washington County CSAH 15 (Manning Avenue) and CSAH 14 (Stillwater Blvd) Realignment Improvements.” ATTACHMENTS: 1. Resolution No. 2017-121 Supporting the Local Road Improvement Program grant application for the Washington County CSAH 15 (Manning Avenue) and CSAH 14 (Stillwater Blvd) Realignment Improvements. CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-121 A RESOLUTION OF SUPPORT FOR THE LOCAL ROAD IMPROVEMENT PROGRAM (LRIP) GRANT APPLICATION FOR COUNTY STATE AID HIGHWAY 15 (MANNING AVENUE) AND COUNTY STATE AID HIGHWAY 14 REALIGNMENT IMPROVEMENTS BY WASHINGTON COUNTY WHEREAS, Washington County intends to reconstruct and realign County State Aid Highway 15 (Manning Avenue) and County State Aid Highway 14 (Stillwater Boulevard) located in the City of Lake Elmo, with said construction to be initiated in 2018; and WHEREAS, the realignment of County State Aid Highway 15 (Manning Avenue) and County State Aid Highway 14 (Stillwater Boulevard) has a positive regional impact to the area, including improved safety and access, and including a positive impact to Trunk Highway 36, an Interregional Corridor (IRC) route; and WHEREAS, items included in the construction contract require Lake Elmo City cost participation in accordance with “Washington County Cost Participation Policy #8001 for Cooperative Highway Improvement Projects”; and WHEREAS, the City of Lake Elmo understands that it will be responsible for all local cost participation required by the County as detailed in the Cooperative Agreement between the County and City that is not covered by LRIP funding. NOW, THEREFORE, BE IT RESOLVED, 1. The City of Lake Elmo supports the Washington County project to reconstruct and realign County State Aid Highway 15 (Manning Avenue) and County State Aid Highway 14 (Stillwater Boulevard); said project to be reconstructed and realigned by Washington County in 2018; and 2. The City of Lake Elmo supports the City’s pursuit and application for Local Road Improvement Program (LRIP) funding to assist in paying the local share of the trunk highway project costs, and authorizes staff to prepare and submit such application. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE SEVENTH DAY OF NOVEMBER, 2017. CITY OF LAKE ELMO By: __________________________ Mike Pearson (Seal) Mayor ATTEST: ________________________________ Julie Johnson, City Clerk STAFF REPORT DATE: November 7, 2017 REGULAR Item #: 11 AGENDA ITEM: Washington County DRAFT 2018-2022 Capital Improvement Plan – City Review and Comments SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Emily Becker, Planning Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council submit comments for consideration by Washington County regarding the County’s DRAFT 2018-2022 Capital Improvement Plan? BACKGROUND AND PROPOSAL DETAILS/ANALYSIS: On October 11, 2017 City staff received notice from Washington County that the DRAFT 2018-2022 Capital Improvement Plan was available for review and comment with comments due no later than November 22, 2017. The County will be holding a public hearing on its DRAFT 2018-2022 CIP on December 12th, 2017 prior to adopting the final document. Staff has reviewed the County’s DRAFT 2018-2022 CIP and from this review and subsequent conversations with Washington County we are confident that the City’s needs have been incorporated. Therefore staff has no comments to submit on the DRAFT 2018-2022 CIP. The attached packet highlights the substantial projects included within or adjacent to Lake Elmo, however this summary does not attempt to itemize the Park and Public Facilities projects located within the Lake Elmo Park Preserve. It should also be noted that the County completes intersection control projects and pavement preservation projects each year, however the specific work related to these improvements are not identified within the CIP document. Staff contacted the County with specific questions related to this annual work and has confirmed that the County is still proposing to install a signalized intersection at CSAH 19 and Hudson Boulevard in 2018 as part of their Intersection Control Projects. The pavement preservation projects include Lake Elmo Avenue, CR17B, from Hudson Boulevard to 10th Street North in 2018, and CSAH 13 (Inwood Avenue) from 10th Street to Stillwater Blvd (Old TH5) in 2019. The CR17B pavement preservation project includes turn lanes at 5th Street for the Hunters Crossing and Southwind subdivisions. Other notable projects are as follows; • CSAH 15 Phase 2 Improvements (CSAH 15 & CSAH 14 intersection realignment) are still proposed for construction in 2018. This project is listed in the CIP document for supplemental funding amounts only. The full project funding is not shown since the funds were mostly secured by the County in their 2016 Bond. The CSAH 15 Phase 2 Improvements includes center left turn lanes at 30th Street and at Manning Trail since this segment of the Manning Avenue (Phase 3) is not likely to occur until the year 2023. • CSAH 17 (Lake Elmo Avenue) Improvements from 10th Street to 30th Street includes the turn lane improvements for the Royal Golf Development at CSAH 17 and CSAH 10. The City has secured reimbursement for the turn lanes through the development agreement. • CSAH 13 Phase 2 Improvements from CSAH 14 to 44th Street is scheduled for 2022 construction but could be completed as early as 2019 if the County is successful with their grant application, or if Oakdale development occurs quickly. • CSAH 14 Downtown Lake Elmo is a new project showing up in the CIP for the first time. This project includes improvements to Stillwater Boulevard (Old TH5) through Downtown and is tentatively scheduled for 2023 construction with preliminary work starting in 2022. FISCAL IMPACT: None at this time. However, County improvement projects completed within the City of Lake Elmo often contain a local cost participation by the City. RECOMMENDATION: Staff is recommending that the City Council accept staff’s report, as part of the Consent Agenda, on the Washington County DRAFT 2018-2022 Capital Improvement Plan and accept staff’s recommendation that no comments need to be submitted. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to accept staff’s report on the Washington County DRAFT 2018-2022 Capital Improvement Plan and recommendation that no comments need to be submitted.” ATTACHMENTS: 1. Summary packet of the Washington County DRAFT 2018-2022 Capital Improvement Plan to highlight Lake Elmo projects. MINNESOTA Capital Improvement Plan 2018 -2022 Draft October 2017 Table of Contents Page # Capital Improvement Plan ............................................................................................................................................... 1 Graphics .............................................................................................................................................................................. 6 Summary Information Summary Tables Category Summary .......................................................................................................................................................... 13 Projects by Category ....................................................................................................................................................... 14 Funding Source Summary ............................................................................................................................................... 16 Projects by Funding Source ............................................................................................................................................. 17 Expenditure Type Summary ............................................................................................................................................ 21 Projects by Year .............................................................................................................................................................. 22 Detail Information Parks and Land Projects by Category ....................................................................................................................................................... 26 Projects by Funding Source ............................................................................................................................................. 27 Project Descriptions ......................................................................................................................................................... 28 Public Facilities Projects by Category ....................................................................................................................................................... 42 Projects by Funding Source ............................................................................................................................................. 43 Project Descriptions ......................................................................................................................................................... 44 Road and Bridge Projects by Category ....................................................................................................................................................... 54 Projects by Funding Source ............................................................................................................................................. 55 Project Descriptions ......................................................................................................................................................... 58 Index ..................................................................................................................................................................................... 99 Capital Improvement Plan Washington County, Minnesota PROJECTS BY CATEGORY 2018 2022thru Total20182019202020212022CategoryProject # Parks & Land PARK-1002 90,00090,000Parks Visitor Signage PARK-1003 1,250,000250,000 250,000 250,000 250,000 250,000Park Facilities/Infrastructure Improvement Program PARK-2013 300,000200,000 100,000Big Marine Park Reserve Playground PARK-3006 400,000400,000Lake Elmo Park Reserve Eagle Point Trail & Access PARK-3007 450,000150,000 300,000Lake Elmo Park Reserve Playground Improvements PARK-3008 1,455,7001,455,700Lake Elmo Park Swim Pond Improvements PARK-3009 1,150,0001,150,000Lake Elmo Park Maintenance Facility PARK-3011 350,000350,000LEPR - Archery Range Upgrade PARK-3012 50,00050,000LEPR - Group Camp #4 - Pavilion Renovation PARK-4004 1,250,0001,250,000Ravine Regional Park Improvements - Phase II PARK-8012 805,100805,100SCB Regional Park Maintenance Facility Improvement PARK-8013 300,000300,000St. Croix Bluffs Playground Improvements PARK-8014 500,000500,000St. Croix Bluffs Pavement and Trails PARK-8015 900,000900,000SCB - Conference Cottage Conversion 9,250,8001,545,100 1,855,700 2,100,000 2,100,000 1,650,000Parks & Land Total Public Facilities BSD-1002-012 70,00070,000Gov Ctr Exterior Envelope Study BSD-1005-023 1,100,0001,100,000Law Enforcement Center Ramp/Deck Waterproofing BSD-CW-1601 500,000250,000 250,000Law Enforcement Center Space Modifications BSD-CW-2001 2,951,000955,000 984,000 1,012,000Facility Condition Improvement Projects BSD-LL-1901 800,00075,000 725,000Valley Branch Library Renovation BSD-ODL-1701 150,000150,000Oakdale Library Building Automation Replacement BSD-ODL-1702 90,00090,000Oakdale Library Exterior Envelope Repairs BSD-PWN-2001 60,00060,000Gun Range Renovation BSD-WSL-2001 1,000,000500,000 500,000Stafford Library Building Improvements HC-1048-027 125,00025,000 25,000 25,000 25,000 25,000Interior and Exterior Renovations 6,846,0001,450,000 1,370,000 1,480,000 1,509,000 1,037,000Public Facilities Total Road & Bridge BOND-2019 30,000,00030,000,000Proposed Bond Sale - 2019 RB-2201 2,100,000420,000 420,000 420,000 420,000 420,000Intersection Control Projects RB-2203 500,000100,000 100,000 100,000 100,000 100,000Misc. Safety/Traffic Capacity Projects RB-2204 27,408,5005,481,700 5,481,700 5,481,700 5,481,700 5,481,700Pavement Preservation & Rehab RB-2216 1,750,000350,000 350,000 350,000 350,000 350,000Structures RB-2512 6,850,000200,000 650,000 6,000,000CSAH 18 - CSAH 13 to CSAH 38 RB-2541 2,430,0002,430,000CSAH 24 - N/S of TH 36 RB-2577 3,500,0003,000,000 500,000CSAH 21 - 40th Street to CSAH 14 RB-2578 500,000500,000St. Croix Valley Jurisdictional Study RB-2581 8,500,0001,200,000 2,800,000 500,000 4,000,000CSAH 12 - TH 244 to CSAH 9 RB-2587 3,467,400100,000 3,367,400CSAH 13 - I-94 Pedestrian Bridge RB-2588 25,000,0001,000,000 3,000,000 3,000,000 18,000,000CSAH 15 & TH 36 Interchange RB-2589 18,857,0003,681,000 15,176,000CSAH 35 & TH 36 Interchange RB-2590 125,00025,000 100,000CSAH 13 - Central Park Pl to Afton Rd/Pioneer Dr Page 14Washington County, MN Total20182019202020212022CategoryProject # RB-2591 220,000200,000 20,000CSAH 9 - Gateway Trail Crossing RB-2592 385,00035,000 350,000CSAH 18 - I-494 Crossing RB-2593 1,019,400184,700 834,700CSAH 19 - CSAH 18 to Ravine Park RB-2599 1,600,0001,000,000 600,000CSAH 23 - E Walnut St to E Chestnut St RB-2601 7,750,000750,000 7,000,000CSAH 19 - Tamarack to I-94 RB-2607 1,100,0001,100,000CSAH 5 - Croixwood Blvd to Pine Tree Trail RB-2609 1,500,000500,000 1,000,000CSAH 32 - CSAH 33 (Everton Ave) to US TH 61 RB-2611 1,600,000600,000 1,000,000CSAH 33 - CSAH 32 to CSAH 2 RB-2613 2,900,000400,000 2,500,000CSAH 5 - CR 64 to Sycamore St W RB-2615 3,150,000400,000 2,750,000CSAH 13 & CSAH 22 Intersection RB-2619 3,150,0002,150,000 1,000,000CSAH 17 - CSAH 10 to 30th Street RB-2621 6,450,000450,000 1,000,000 5,000,000CR 65 - CSAH 10 to CSAH 14 RB-2622 2,200,0002,200,000CSAH 15 & CSAH 14 Intersection RB-2623 4,250,000500,000 250,000 3,500,000CSAH 13 - CSAH 14 to 44th St - Phase II RB-2625 7,800,0001,000,000 800,000 6,000,000CSAH 19 - Dale Road to CSAH 18 RB-2627 1,200,000700,000 500,000CSAH 15 - CSAH 10 to CSAH 14 RB-2629 1,000,000500,000 500,000CSAH 21- I-94 to 40th Street RB-2631 600,000600,000Southwest Arterial Study RB-2633 5,500,000500,000 1,000,000 4,000,000CR 50 - US TH 61 to CSAH 15 RB-2635 600,000600,000CSAH 13 - CSAH 20 to CSAH 18 RB-2637 250,000250,000CSAH 17 - TH 36 to CSAH 12 RB-2639 6,500,000500,000 1,000,000 5,000,000CSAH 5 - Sycamore St to TH 96 RB-2641 200,000200,000CSAH 3 - CSAH 7 to CSAH 4 RB-2643 850,000850,000CSAH 14 - Downtown Lake Elmo RB-2645 500,000200,000 300,000CSAH 13 - Ideal Avenue RRA-2297-09 50,00050,000Red Rock Corridor Development RRA-2297-11 100,500,0005,000,000 6,000,000 19,000,000 36,500,000 34,000,000Gateway Gold Line Bus Rapid Transit (BRT) 293,812,30031,607,400 79,449,800 51,851,700 73,751,700 57,151,700Road & Bridge Total GRAND TOTAL 309,909,10034,602,500 82,675,500 55,431,700 77,360,700 59,838,700 Page 15Washington County, MN Description The project scope includes an annual program for intersection control upgrades determined to be needed, but not incorporated as part of a larger roadway improvement project. Projects under this program would typically be individually identified and programmed through the County's Intersection Control Ranking System. This program assumes one intersection improvement is programmed per year at a cost of $420,000. Project #RB-2201 Justification High-level intersection controls (roundabouts and traffic signals) may be constructed at county highway intersections meeting criteria set forth in the county Intersection Control Ranking System. The county proactively plans for the installation of intersection controls to improve the safety and efficiency of traffic flow on the County Highway System. The annual Intersection Control Ranking System determines the priority of these installations. The number of projects programmed varies depending on actual budget funding, the availability of matching funds, unforeseen development, or intersection safety problems. Budget Impact/Other The typical traffic signal costs $1,500 per year to operate and maintain. This cost to the public is off-set by the increased traffic flow efficiency and enhanced safety. Useful Life 5+ years Project Name Intersection Control Projects Category Road & Bridge Type Improvement Total Project Cost:$2,100,000 Contact PWD Department Capital Road & Bridge Projects Location Various Roads District #Multiple Total20182019202020212022Expenditures 100,00020,000 20,000 20,000 20,000 20,000Planning / Design 2,000,000400,000 400,000 400,000 400,000 400,000Construction 420,000 420,000 420,000 420,000 420,000 2,100,000Total Total20182019202020212022Funding Sources 1,050,000210,000 210,000 210,000 210,000 210,000Local Contributions 1,050,000210,000 210,000 210,000 210,000 210,000State Aid 420,000 420,000 420,000 420,000 420,000 2,100,000Total Page 59Washington County, MN Description The project scope includes an annual program comprised of pavement preservation projects including: 1. Seal coating 2. Crack filling 3. Pavement milling 4. Overlays 5. Cold-in-place recycling 6. Hot-in-place recycling 7. Pavement reclaim 8. Full depth reclamation 9. Paving gravel shoulders 10. Minor subgrade corrections 2018 will include: 1. County State Aid Highway (CSAH) 6 - Trunk Highway (TH) 120 to Grenada 2. CSAH 10 - CSAH 15 to CSAH 21 3. County Road (CR) 17B - CSAH 10 to Interstate 94 4. CSAH 3 - CSAH 4 to County Line 5. CR 52 - TH 97 to TH 95 Project #RB-2204 Justification These projects are scheduled to interrupt the normal deterioration of highways in order to extend the pavement life. Pavement condition is measured/calculated annually and reported as the system wide Pavement Condition Index (PCI) that assigns a value to each roadway segment on a scale of 1-100, with higher numbers equating to better pavement condition. Public Works Performance Measures set two goals: 1.) System wide average PCI = 72 or greater, and 2) no roadway PCI should be lower than 40. Budget Impact/Other County Program Aid funding refers to funding contingent on continued County Program Aid from the State of Minnesota. If this funding falls through, there will be reductions in the pavement program accordingly. Projects completed under the Pavement Preservation Program reduce operation and maintenance costs. Useful Life 5+ years Project Name Pavement Preservation & Rehab Category Road & Bridge Type Improvement Total Project Cost:$27,408,500 Contact PWD Department Capital Road & Bridge Projects Location Various Roads District #Multiple Total20182019202020212022Expenditures 27,408,5005,481,700 5,481,700 5,481,700 5,481,700 5,481,700Construction 5,481,700 5,481,700 5,481,700 5,481,700 5,481,700 27,408,500Total Total20182019202020212022Funding Sources 6,408,5001,281,700 1,281,700 1,281,700 1,281,700 1,281,700County Program Aid 10,000,0002,000,000 2,000,000 2,000,000 2,000,000 2,000,000State Aid 11,000,0002,200,000 2,200,000 2,200,000 2,200,000 2,200,000Wheelage Tax 5,481,700 5,481,700 5,481,700 5,481,700 5,481,700 27,408,500Total Page 61Washington County, MN Description The project scope includes a pedestrian bridge over Interstate (I) I-94, adjacent to the County State Aid Highway (CSAH 13) (Inwood Avenue/Radio Drive) bridge in the cities of Woodbury, Lake Elmo, and Oakdale. Project #RB-2587 Justification Currently, pedestrians and cyclists cross I-94 in this area via a narrow section of the existing CSAH 13 bridge. This section does not meet current design standards for two- way trail traffic, and the approaches do not meet Americans with Disabilities Act standards. A new pedestrian bridge will accommodate all trail users, and will also provide the ability to repurpose the space on the bridge to allow for a third southbound travel lane. Traffic studies indicate this third lane will be needed in the near future. Repurposing of the existing space on the I-94 bridge to accommodate three southbound lanes, will thereby provide additional roadway capacity. Budget Impact/Other The project will increase operations and maintenance costs because of the added infrastructure. This project requires Federal funds. If Federal funding is not available, this project may be delayed or deferred. Useful Life 5+ years Project Name CSAH 13 - I-94 Pedestrian Bridge Category Road & Bridge Type Construction Total Project Cost:$4,134,900 Contact PWD Department Capital Road & Bridge Projects Location Various Roads District #Multiple Total20182019202020212022Expenditures 3,367,4003,367,400Construction 100,000100,000Right-of-Way 100,000 3,367,400 3,467,400Total Prior 667,500 Total Total20182019202020212022Funding Sources 2,847,8002,847,800Federal Grants 100,00050,000 50,000Local Contributions 519,60050,000 469,600State Aid 100,000 3,367,400 3,467,400Total Prior 667,500 Total Page 68Washington County, MN Description The project scope includes a grade separated interchange on County State Aid Highway (CSAH) 15 (Manning Avenue N) at the intersection with Trunk Highway (TH) 36, and the addition of a south frontage road. Project #RB-2588 Justification This intersection currently operates an at-grade intersection controlled by a fully actuated traffic control signal. Growing traffic demands on both TH 36 and CSAH 15 require a grade separated interchange. Budget Impact/Other The project will increase operation and maintenance costs because of added infrastructure associated with the interchange. It is expected that local agencies, the State of Minnesota, and Federal Aid will provide funding for this project. If this funding is not obtained, this project would be delayed. Useful Life 5+ years Project Name CSAH 15 & TH 36 Interchange Category Road & Bridge Type Construction Total Project Cost:$25,569,600 Contact PWD Department Capital Road & Bridge Projects Location Various District #Multiple Total20182019202020212022Expenditures 2,000,0001,000,000 1,000,000Planning / Design 18,000,00018,000,000Construction 5,000,0002,000,000 3,000,000Right-of-Way 1,000,000 3,000,000 3,000,000 18,000,000 25,000,000Total Prior 569,600 Total Total20182019202020212022Funding Sources 7,000,0007,000,000Federal Grants 5,000,0005,000,000Local Contributions 6,000,0006,000,000State Aid 7,000,0001,000,000 3,000,000 3,000,000State Bonds 1,000,000 3,000,000 3,000,000 18,000,000 25,000,000Total Prior 569,600 Total Page 69Washington County, MN Description The project scope includes the following improvements on County State Aid Highway (CSAH) 17 (Lake Elmo Avenue) from CSAH 10 (10th Street North) to 30th Street North: 1) New pavement 2) Improved surface water management 3) Evaluation of improved pedestrian accommodations Project #RB-2619 Justification The current pavement along this corridor is in poor condition. Additionally, the presence of numerous utility cuts and patches has created a roadway surface that is uneven and does not provide adequate ride quality. This project is also an opportunity to evaluate and address concerns related to surface water management. The road is adjacent to Lake Elmo, so improved water management will help maintain high water quality in the lake. Additional concerns have been raised relating to pedestrian safety and accessibility in this area. The roadway is a popular cycling and pedestrian route. This project will evaluate options to improve pedestrian accommodations. Budget Impact/Other The project will increase operation and maintenance costs because of the added infrastructure. Useful Life 5+ years Project Name CSAH 17 - CSAH 10 to 30th Street Category Road & Bridge Type Construction Total Project Cost:$3,358,800 Contact PWD Department Capital Road & Bridge Projects Location Lake Elmo District #3 Total20182019202020212022Expenditures 150,000150,000Planning / Design 3,000,0002,000,000 1,000,000Construction 2,150,000 1,000,000 3,150,000Total Prior 208,800 Total Total20182019202020212022Funding Sources 3,150,0002,150,000 1,000,000State Aid 2,150,000 1,000,000 3,150,000Total Prior 208,800 Total Page 82Washington County, MN Description The project scope includes realignment of the intersection of County State Aid Highway (CSAH) 15 and CSAH 14. Funds were also budgeted in a prior CIP for this project under project #RB-2562. Project #RB-2622 Justification The roadway has served its useful life and will need to be reconstructed because of poor pavement quality, lack of capacity of current and future projected traffic volumes, lack of pedestrian facilities, and the need for additional safety improvements. Budget Impact/Other The project will increase operations and maintenance costs because of added pavement widths and infrastructure. Useful Life 5+ years Project Name CSAH 15 & CSAH 14 Intersection Category Road & Bridge Type Construction Total Project Cost:$2,200,000 Contact PWD Department Capital Road & Bridge Projects Location Lake Elmo District #3 Total20182019202020212022Expenditures 2,200,0002,200,000Construction 2,200,000 2,200,000Total Total20182019202020212022Funding Sources 2,200,0002,200,000State Grants 2,200,000 2,200,000Total Page 84Washington County, MN Description The project scope for Phase II includes the following improvements on County State Aid Highway (CSAH) 13 (Ideal Avenue) from approximately 44th Street to County State Aid Highway 14: 1. Two-lane highway construction 2. Construction of trails on the west side of the highway 3. Drainage improvements including stormwater treatment facilities 4. Intersection control improvement at CSAH 13 and 40th Street and 36th Street Preliminary design along with public engagement was completed with the corridor study and will need to be reviewed due to the fact there is large scale development potential to the west of CSAH 13 that will require coordination. A final project scope, right-of-way acquisition required, and cost estimates will be refined prior to starting final design. The estimated cost is based on the corridor study. Project #RB-2623 Justification CSAH 13 is a north-south minor arterial serving regional traffic in Oakdale and Lake Elmo. Land development in the area continues to have a lot of activity including requests for new access onto CSAH 13. Providing for increased capacity and allowing appropriate access is critical for regional traffic. Phase I was constructed in 2017 and included highway reconstruction with the addition of a trail on the west side, sanitary sewer, and stormwater treatment facilities. Budget Impact/Other The project funding is contingent on receiving state grants through a competitive process managed by the Minnesota Department of Transportation. If this project is not selected it will need to be delayed. Useful Life 5+ years Project Name CSAH 13 - CSAH 14 to 44th St - Phase II Category Road & Bridge Type Construction Total Project Cost:$4,250,000 Contact PWD Department Capital Road & Bridge Projects Location Lake Elmo District #Multiple Total20182019202020212022Expenditures 500,000500,000Planning / Design 3,500,0003,500,000Construction 250,000250,000Right-of-Way 500,000 250,000 3,500,000 4,250,000Total Total20182019202020212022Funding Sources 725,000100,000 125,000 500,000Local Contributions 3,525,000400,000 125,000 3,000,000State Aid 500,000 250,000 3,500,000 4,250,000Total Page 85Washington County, MN Description The project scope includes the following improvements on County State Aid Highway (CSAH) 15 between CSAH 10 and CSAH 14: 1) Expansion to a four lane divide highway 2) Access Management 3) Intersection Control 4) Separate Multi-Use Trail 5) Landscaping and Aesthetics Project #RB-2627 Justification CSAH 15 is the backbone of the County's transportation system, thus is an important north-south route connecting I-94 to Lake Elmo, Stillwater and beyond. These improvements are necessary to ensure the ongoing safe and efficient operation of this highway segment. Budget Impact/Other The project will increase operations and maintenance costs because of added pavement widths and infrastructure. Useful Life 5+ years Project Name CSAH 15 - CSAH 10 to CSAH 14 Category Road & Bridge Type Construction Total Project Cost:$15,200,000 Contact PWD Department Capital Road & Bridge Projects Location Various District #3 Total20182019202020212022Expenditures 700,000700,000Planning / Design 500,000500,000Right-of-Way 700,000 500,000 1,200,000Total Future 14,000,000 Total Total20182019202020212022Funding Sources 100,000100,000Local Contributions 1,100,000600,000 500,000State Aid 700,000 500,000 1,200,000Total Future 14,000,000 Total Page 87Washington County, MN Description The project scope includes the following improvements to County State Aid Highway (CSAH) 14 (Stillwater Blvd) through Lake Elmo downtown area: 1) Safety improvements 2) Access management 3) Pavement improvement 4) Turn lane and intersection improvements 5) Pedestrian and non-motorized accommodations 6) Drainage improvements that align with the regional drainage plan developed in 2015 Project #RB-2643 Justification CSAH 14 is a two lane arterial highway that runs through the heart of the City of Lake Elmo. There are numerous access points, a lack of turn lane accommodations and minimal pedestrian accommodations throughout this approximately 1.5 mile segment.. Additionally, surface water management is accomplished via a series of ditches and culverts, many of which have partially collapsed or filled in. The result is localized flooding and standing water issues. This entire corridor needs to be reconstructed to better accommodate traffic demand, while serving pedestrians and providing reasonable and safe access to local businesses and residents. Budget Impact/Other The project will increase operation and maintenance costs associated with additional pavement, trails, and sidewalk infrastructure which will require additional resources to own, operate and maintain. Useful Life 5+ years Project Name CSAH 14 - Downtown Lake Elmo Category Road & Bridge Type Construction Total Project Cost:$9,650,000 Contact PWD Department Capital Road & Bridge Projects Location Lake Elmo District #3 Total20182019202020212022Expenditures 850,000850,000Planning / Design 850,000 850,000Total Future 8,800,000 Total Total20182019202020212022Funding Sources 350,000350,000Local Contributions 500,000500,000State Aid 850,000 850,000Total Future 8,800,000 Total Page 95Washington County, MN Description The project scope includes the following improvements to County State Aid Highway (CSAH) 13 (Idea Avenue) located in Oakdale and Lake Elmo: 1) Safety improvements 2) Pavement improvement 3) Turn lane and intersection improvements 4) Pedestrian and non-motorized accommodations 5) Drainage improvements Project #RB-2645 Justification This segment of Idea Avenue was constructed in 2002, prior to major commercial developments in this area. These developments and their need for safe and efficient turn lanes and access, drive the need to reconstruct this roadway to better accommodate the balance between access and mobility. Additionally, the railroad crossing is in need of upgrades, including widening. This area is also a nexus for regional surface water drainage, thus the design needs to work toward improving regional surface water management. Budget Impact/Other The project will increase operation and maintenance costs associated with additional pavement, drainage and sidewalk infrastructure. Useful Life 5+ years Project Name CSAH 13 - Ideal Avenue Category Road & Bridge Type Construction Total Project Cost:$3,000,000 Contact PWD Department Capital Road & Bridge Projects Location Various District #Multiple Total20182019202020212022Expenditures 200,000200,000Planning / Design 300,000300,000Land Acquisition 200,000 300,000 500,000Total Future 2,500,000 Total Total20182019202020212022Funding Sources 500,000200,000 300,000State Aid 200,000 300,000 500,000Total Future 2,500,000 Total Page 96Washington County, MN STAFF REPORT DATE: November 7, 2017 CONSENT ITEM# 12 AGENDA ITEM: US Solar Sunscription TO: Mayor and City Council SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: At their September meeting, the Environmental Committee, reviewed the proposal from US Solar to buy a subscription to a community solar garden. They recommended approval of the subscription subject to review by the City Attorney. ISSUE BEFORE COUNCIL: Should Council approve the agreement with US Solar? PROPOSAL: Included in your packet is the US Solar Flat Rate Sunscription Agreement that includes some changes attorney Doug Shaftel was able to negotiate and he offers the comments in the following paragraphs. US Solar agreed to some minor revisions, but rejected revisions that would have given the City an opportunity to terminate in the event of severe underproduction. US Solar feels that the City is getting a good deal on the financial terms and, therefore, is unwilling to further alter the conditions of early termination. This version does includes a “production guarantee” that provides for a $1,000 payment from US Solar to the City when production drops below 85% of estimated energy for any single year after year three, which is not something typically found in other recent agreements they have. The City’s financial penalties for breaking the contract before the end of the 25-year term will be so severe that it will be financially infeasible to do so. Unless US Solar or the City can find a replacement subscriber, to get out of the contract, the City must make a balloon payment of all remaining payments due for projected energy for the remainder of the term (minus any amount Xcel pays US Solar for the City’s allotment). If the subscription becomes financially undesirable to the City, others are unlikely to assume the City’s obligations. The only circumstance under which the City could terminate early without penalty (other than by transferring its allotted energy to another subscriber) would be if the project does not produce any energy for more than six months or, if due to an act of nature, the project is damaged and does not produce energy for more than one year. A few other issues: 1. Taxes. Under ¶5.6, the City is currently not responsible for any taxes associated with the production of solar energy from the assigned garden(s). In the event that the legislature ever imposes a tax on the City’s receipt of bill credits, the City is responsible for their payment. 2. Publicity. Under ¶8.3 of the agreement, if the City wants to advertise to the public that it is using solar power, it will need to give US Solar the opportunity and review and comment on the proposed materials. 3. Assignment of the garden. Under ¶7.1, US Solar can effectively assign the City’s subscription agreement to any other party without the City’s consent, as long as that party assumes its obligations. Therefore, the City may find itself, as early as year one of the term, making payments to an entity with no relationship to US Solar. 4. Limitation of City remedies for underperformance. Under ¶10.7, the City’s remedies, in the event that the garden is severely underperforming are limited to the $1,000 annual payment. In sum, the City may have good reasons for entering into this agreement, such as promoting alternative energy. This presents an opportunity to do so with no up-front financial costs. But the real cost to the City is that it must make a 25-year commitment to pay its allocated amount of energy produced by the garden, regardless of whether the projected savings are realized. US Solar informed Doug that due to early snow, construction of US Solar’s gardens may be pushed back to the spring. That will impact the timing of when US Solar assigns the City to one or more gardens. But it shouldn’t impact the potential financial benefits of the agreement unless the delay causes US Solar to assign the City to a new garden that lacks interconnection approval. Therefore, the attorney recommends that, if Council desires to approve of the agreement, the Council condition its approval on US Solar assigning it to a project for which Xcel has already granted interconnection approval. FISCAL IMPACT: The City may save about $127,000 over the 25 year term of the contract but that is not guaranteed. It is based upon an assumption that energy will increase at 2.5% annually. While that has been the case over the last decade or so, there’s no guarantee for the future. OPTIONS: 1) Approve the US Solar Flat Rate Sunscription Agreement as presented 2) Amend and then Approve the US Solar Flat Rate Sunscription Agreement 3) Do not Approve the US Solar Flat Rate Sunscription Agreement RECOMMENDATION: If removed from the consent agenda: “Motion to approve the US Solar Flat Rate Sunscription Agreement subject to US Solar assigning it to a project for which Xcel Energy has already granted interconnection approval.” ATTACHMENTS: • US Solar Flat Rate Sunscription Agreement • Sunscription Overview • Sunscription Proposal PROPRIETARY AND CONFIDENTIAL © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 US Solar Flat Rate SunscriptionSM Agreement This Flat Rate SunscriptionSM Agreement (this “Agreement”) is entered into by and between US Solar LLC (together with its successors and assignees, “US Solar” or “we”) and the Subscriber described below (together with any permitted transferees, “Project Subscriber” or “you”) (each a “Party” and collectively the “Parties”) and is effective as of the date signed by the Parties (the “Effective Date”). Project Subscriber: US Solar℠: Name and Address City of Lake Elmo 3800 Laverne Ave N Lake Elmo, MN 55042 Attention: Kristina Handt Name and Address US Solar LLC 100 N 6th Street, Suite 218C Minneapolis, MN 55403 Attention: MN CSG Notices Phone 651-747-3905 Phone (612) 294-6978 E-mail KHandt@lakeelmo.org E-mail info@us-solar.com Premises and Account Numbers Account Premise 51-4504807-7 303135351 302177887 302271471 51-5356323-8 303567606 303035927 51-4580376-5 304120112 302429100 Community Solar Garden Allocation An amount expected to produce up to 129,678 kWh, equal to 120% of Project Subscriber's average annual electricity consumption (“AAEC”) (net of any other distributed generation resources serving a relevant Premises) over the prior twenty-four (24) months with respect to its eligible Account and Premises numbers, allocated to multiple projects. Project Subscriber’s AAEC is equal to approximately 108,065 kWh. This Agreement sets forth the terms and conditions of your subscription to the Community Solar Garden(s) described in Exhibit B (individually and collectively, as context requires, a “Project”) and installed at the Community Solar Garden Site(s) described in Exhibit B (individually and collectively, as context requires, a “Project Site”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Standard Contract for Solar Rewards Community contract (“SRC Contract”). The exhibits listed below are incorporated by reference and made part of this Agreement. Exhibit A Definitions Exhibit B Project(s) and Project Site(s) Exhibit C Bill Credit Types, Current Bill Credit Rates, and Current SunscriptionSM Rates Exhibit D Estimate of Subscribed Energy PROPRIETARY AND CONFIDENTIAL 2 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 Exhibit E [Reserved] Exhibit F Form of SRC Contract Exhibit G Form of Agency Agreement Exhibit H Project Subscriber Data ARTICLE 1 SUBSCRIPTION 1.1 Subscribing to Project Capacity. You are subscribing to the Community Solar Garden Allocation (“CSG Allocation”) identified for each Project on the front page of this Agreement on the terms and conditions set forth herein. 1.2 Bill Credit Value. As more fully detailed in the SRC Contract, your CSG Allocation entitles you to receive a Bill Credit against your monthly retail electrical bill equal to the product of (i) the amount of your Subscribed Energy for each Production Month, and (ii) your applicable Bill Credit Rate. Bill Credits are the dollar amounts paid by NSP to you as a credit on your retail electric bill to compensate you for your beneficial share of the solar electricity produced by the Project and delivered to NSP from the Project. 1.3 Bill Credit Rate. Bill Credit Rates are found in the CSG Tariff. The Bill Credit Rates in effect as of the Effective Date are as follows: Customer Class Bill Credit Type Bill Credit Rate per kWh (AC) for Energy Delivered to Company Standard $0.12798 Enhanced – Solar Gardens > 250kW (AC) $0.14798 Standard $0.10296 Enhanced – Solar Gardens > 250kW (AC) $0.12296 Your Bill Credit Rate will be updated annually (or otherwise as provided by order of the MPUC) during the Term only to reflect any updates in the applicable retail rate (labeled the “Standard” rate in the chart above) with respect to your customer class, as reflected in the CSG Tariff. The amount of the CSG “Enhanced” rate premium over the Standard rate reflects the value of the Project’s RECs sold and delivered by us to NSP. Per the CSG Tariff, the amount of CSG “Enhanced” rate premium over the Standard rate will not change over the Term. Please see Exhibit C for your account by account Bill Credit Type, current Bill Credit Rates, and current SunscriptionSM Rates. 1.4 Subscribed Energy. The estimated amount of Subscribed Energy produced by your CSG Allocation over the Term is set forth in Exhibit D. 1.5 SunscriptionSM Rate and Payments. (a) Your SunscriptionSM Rate for each Project for each Production Month shall be equal to $0.1199/kWh for each of your General Service accounts and $0.1444/kWh for each of your Small General Service accounts. Please see Exhibit C for additional details about Bill Credit types, current Bill Credit Rates, and current SunscriptionSM Rates. PROPRIETARY AND CONFIDENTIAL 3 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 (b) The monthly payment amount you owe to US Solar (each, a “SunscriptionSM Payment”) is equal to the product of (i) your Subscribed Energy produced in a given Production Month, and (ii) your SunscriptionSM Rate. (c) SunscriptionSM Payments will be invoiced monthly, beginning the first month after the Date of Commercial Operation (“COD”) of each particular Project, and you agree to make the full monthly SunscriptionSM Payment within forty (40) days of receiving our invoice. (d) We shall provide you with written notice of the Date of Commercial Operation. 1.6 No Additional Funds. The SunscriptionSM Payments represent full payment by you for your CSG Allocation subscription, and we shall not have any right to compel you to advance or pay any additional funds for the construction or maintenance of the Project or your CSG Allocation. 1.7 Ownership Limitation. Project Subscriber is not purchasing, and US Solar is not selling or transferring to Project Subscriber: (a) Any ownership or lien in any specific modules or tangible component of the Project; (b) Any ownership or membership interests or rights in US Solar or any entity which owns or may subsequently own the Project (for each Project, a “Project Owner”) or any financial rights or distributions associated with such ownership; (c) Any right to any payment by NSP to US Solar or the Project Owner with respect to Unsubscribed Energy; (d) Any right to manage, direct, control or operate the Project, US Solar or Project Owner; or (e) Any RECs produced by the Project or any payment by NSP to US Solar or Project Owner with respect to the RECs. 1.8 Term. The term of the Agreement (“Term”) shall begin on the Effective Date and shall end, with respect to each Project, twenty five years after the COD of such Project unless otherwise provided for in this Agreement.. ARTICLE 2 STANDARD CONTRACT FOR SOLAR REWARDS COMMUNITY 2.1 SRC Contract. With respect to each Project, US Solar or the applicable Project Owner will enter into the SRC Contract once offered by NSP. Please see Exhibit F for the form of SRC Contract. Among other things, the SRC Contract provides for the following: (a) US Solar acting as the Community Solar Garden Operator; (b) Sale and delivery to NSP of all electricity and RECs generated by the Project for a term of twenty five (25) years; (c) Allocation to Subscribers by NSP of Bill Credits in exchange for delivery by US Solar, or the applicable Project Owner, of the electricity and RECs generated by the Project; and PROPRIETARY AND CONFIDENTIAL 4 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 (d) US Solar ensuring compliance with the Community Solar Garden Statutory Requirements (“Eligibility Requirements”), which include eligibility requirements relating to both the Project and Subscribers. 2.2 Subscriber Agency Agreement and Consent Form. Attached to the SRC Contract is a Subscriber Agency Agreement and Consent Form (“Agency Agreement”) that you will be required to sign. Please see Exhibit G for the form of Agency Agreement. Among other things, the Agency Agreement provides for the assignment of energy and RECs to NSP and provides information regarding the following: (a) Data access, control, and disclosure; (b) Contacting NSP about certain questions regarding your Bill Credits; and (c) Contacting US Solar about questions regarding this Agreement, NSP’s data policies, and Project-related items. ARTICLE 3 ELIGIBILITY AND EXCESS BILL CREDIT PURCHASE 3.1 Eligibility Data. You acknowledge that the account data contained in Exhibit H is complete and accurate and that US Solar may use the data for purposes of confirming your conformance with the applicable Eligibility Requirements. You agree to provide US Solar and the applicable Project Owner with any additional information we request to determine, verify, or confirm your eligibility at any time during the Term. 3.2 Authorization to Access Data. You authorize US Solar and the applicable Project Owner to use all eligibility data set forth in Exhibit H, as well as your electric bills for each Eligible Address for the most recent twenty-four (24) months, to assist US Solar and the applicable Project Owner in confirming your eligibility. 3.3 Credit Information. Subject to the confidentiality and privacy provisions of Section 8.1, you agree to provide US Solar with information reasonably necessary for US Solar, the Project Owner, or its Financing Parties to confirm your creditworthiness. 3.4 Excess Bill Credit Purchase. As per the SRC Contract, any excess Bill Credits (i.e., Bill Credits in a billing period that exceed the amount you owe NSP for your regular retail service in that period) will be carried forward and credited against all charges for at least a twelve (12) month cycle. Under the SRC Contract, NSP will be required to purchase from you all such Bill Credits with the billing statement that includes the last day of February and restart the credit cycle the following period with a zero credit balance. ARTICLE 4 US SOLAR RESPONSIBILITIES 4.1 Design and Implementation. We agree to develop, design, finance and construct the Project(s), including, but not limited to, site acquisition, the filing of interconnection applications and procurement of an interconnection agreement with NSP, the selection and procurement of Project components, and the installation and testing of all Project components. PROPRIETARY AND CONFIDENTIAL 5 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 4.2 Application Process. We shall submit each Project to NSP for approval as a Community Solar Garden (“CSG”) in accordance with the CSG Tariff and shall provide all information required by NSP to determine the completeness of our application and technical viability of each Project. Once offered by NSP, we (or the applicable Project Owner) shall enter into the SRC Contract, interconnection agreement, and other agreements with NSP that may be necessary to qualify each Project as a CSG and for the Project to operate and deliver energy to NSP. 4.3 Timeliness. In keeping with the time requirements set forth in the SRC Contract, we shall use commercially reasonable efforts to finish construction and installation of each particular Project within twenty four (24) months after NSP has deemed complete our CSG application with respect to such Project. 4.4 Eligibility Compliance. US Solar is responsible for confirming compliance with the Eligibility Requirements, including verification of the eligibility information you have provided to US Solar. 4.5 Maintenance. We will maintain the Project in a prudent manner and in accordance with industry standards throughout the Term. We will provide you with notice of any material repair or replacement event that is reasonably anticipated to exceed one hundred eighty (180) days. 4.6 Insurance. We will maintain insurance consistent with the requirements of the SRC Contract and Interconnection Agreement and/or any Financing Party, and shall use commercially reasonable efforts to name Project Subscriber as an additional insured with respect to commercial general liability insurance procured in connection therewith. 4.7 Performance Ratio Guarantee. Commencing at the end of the third calendar year following the year in which the last Project reaches COD, we guarantee that the average annual Subscribed Energy produced during the prior (3) calendar years (“Average Annual Production”), shall not be less than eighty-five percent (85%) of your Estimate of Subscribed Energy, as enumerated in Exhibit D, and as adjusted for Force Majeure Events (“Guaranteed Production”), for the applicable calendar year. In any year in which your Average Annual Production does not equal or exceed the Guaranteed Production, we will pay you an amount equal to one thousand dollars ($1,000.00) within forty five (45) days following the end of the applicable calendar year. ARTICLE 5 FURTHER INFORMATION 5.1 Unsubscribed Energy. Unsubscribed Energy will be purchased by NSP from the Project in accordance with the SRC Contract and Applicable Laws. 5.2 Reserves. US Solar will establish reserve funds available for use to maintain the Project and pay Project operating expenses such as taxes, maintenance, insurance, and management services for the Term. 5.3 Other Agreements and Documents. (a) Upon your request we will provide the following when and as available: PROPRIETARY AND CONFIDENTIAL 6 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 i. Copy of the SRC Contract between NSP and the Project Owner; ii. Copy of the solar module warranty; iii. Certificate(s) of insurance; and iv. Long-term maintenance plan. (b) We will provide you with any other information that you may request, or that we may be required to deliver, under the CSG Tariff. (c) You agree to sign an acknowledgment of receipt of any such materials. 5.4 Information Sharing. The Parties acknowledge the Agency Agreement contains certain provisions relating to “Subscriber Account Information” and “Subscriber’s Energy Use Data” and agree to adhere to those provisions. 5.5 Fair Disclosure. You acknowledge that, prior to entering into this Agreement and becoming a Subscriber, we provided you with a copy of the SRC Contract. US Solar will comply with all other requirements of the MPUC and CSG Tariff with respect to communications with you. 5.6 Taxes. You recognize that neither we nor NSP makes any representations or warranties concerning the taxable consequences, if any, to you with respect to your Bill Credits, your SunscriptionSM Payments, or your participation in the Project. We are responsible for paying the Minnesota Solar Energy Production Tax, if any, under Minnesota Statutes 272.0295 and all amendments thereto. We are also responsible for all income, gross receipts, ad valorem, personal property or real property or other similar taxes and any and all franchise fees or similar fees assessed against us due to our ownership of the Project. We are not obligated for any taxes payable by or assessed against Project Subscriber based on or related to Project Subscriber’s overall income or revenues. You are responsible to either pay or reimburse us for any and all other Taxes assessed on the sale, delivery, or consumption of your Bill Credits. 5.7 Securities Laws. Neither we nor NSP makes any representations or warranties concerning the implication of any federal or state securities laws with respect to this Agreement or your CSG Allocation. Neither this Agreement nor your CSG Allocation has been registered under the Securities Act of 1933, as amended, or any state securities laws. US Solar does not believe this Agreement or the CSG Allocation constitute a security governed by such laws but, in the event any such securities laws may apply, Project Subscriber represents that, as of the Effective Date, it is an “accredited investor” as that term is defined in Rule 501 of the Securities and Exchange Commission under the Securities Act of 1933, as amended. Project Subscriber agrees that it is not entering into this Agreement or acquiring the Bill Credits for the purpose of making a market in such interests or trading them on any securities market or equivalent thereof which might fall within the scope of such laws. You are urged to seek your own professional advice on these matters. ARTICLE 6 TRANSFERABILITY 6.1 General. This Agreement and your Bill Credits are your personal property. Your ability to continue to receive Bill Credits is dependent upon your continuing compliance with the applicable Eligibility Requirements and your payment of the SunscriptionSM Payments. This Agreement and the Bill Credits are transferable only as set forth below. This Agreement and the PROPRIETARY AND CONFIDENTIAL 7 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 Bill Credits are not transferable by you, whether voluntarily or by operation of law, at any time when you are in default under this Agreement, unless as approved by US Solar. 6.2 Sale or Transfer to Other Eligible Subscribers. You may voluntarily sell or transfer this Agreement, or any portion of your CSG Allocation (but not less than the minimum set by Eligibility Requirements), for any reason (but not more than once in any twelve (12) month period) and to any person or entity who, at the time of the sale or transfer meets applicable Eligibility Requirements for the relevant Project(s). Any amounts you collect from a transferee in respect of your transfer of this Agreement, or any portion of your CSG Allocation, belongs to you. Neither US Solar nor a Project Owner will have any claim or right to any such amounts you may receive. Your sale or transfer of your CSG Allocation for any Project is expressly conditioned upon: (a) US Solar receiving at least ninety (90) days’ prior written notice identifying the prospective purchaser or transferee, providing the physical address at which it takes electric service from NSP, the NSP account number and all other information needed to determine its eligibility to be a Subscriber, as well as any other subscriptions in the relevant Project or other CSGs held by the proposed transferee, and any solar facility owned or leased by the proposed transferee at the address associated with the proposed transfer; (b) Receipt by US Solar of authorizations from the proposed transferee needed to access their NSP account data, and receipt by US Solar of usage data at the proposed transferee’s address needed to calculate its historic electrical usage; (c) Determination by US Solar that the proposed transferee is eligible to be a Subscriber in the relevant Project and that its participation as a Subscriber will not cause the Project to fail any Eligibility Requirement or otherwise fail to comply with any Applicable Laws or contractual obligations to NSP; (d) The proposed transferee’s (i) express written assumption of this Agreement or execution and delivery of a new subscription agreement with US Solar as to the CSG Allocation on terms acceptable to US Solar, including the cure of any prior defaults arising under this Agreement; and (ii) execution of an Agency Agreement or any other document reasonably required by US Solar or NSP to effectuate the transfer and maintain compliance with the Eligibility Requirements; (e) The proposed transferee meeting our credit requirements; and (f) US Solar receiving any applicable Cover Cost Amount from Project Subscriber. US Solar shall notify NSP of any such transfer so that NSP may change the applicable Subscriber benefits to apply to the transferee’s retail NSP electric account. 6.3 Relocation/Sale of Eligible Address. (a) If during the Term you move from an Eligible Address and are no longer the NSP account-holder at that address, you may transfer all or part of your CSG Allocation to another Eligible Address of yours (new or existing) conditioned on the following: PROPRIETARY AND CONFIDENTIAL 8 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 i. You provide us with at least ninety (90) days’ notice of such transfer; and ii. We determine that the new address, including the prior electrical usage at that address, will allow for the transferred CSG Allocation to continue to meet the applicable Eligibility Requirements. (b) If during the Term you move from or sell an Eligible Address and are no longer the NSP account-holder at that address, and you are not relocating to a new Eligible Address or do not have sufficient subscription capacity an another Eligible Address, before moving you must either: i. Sell or transfer the relevant portion of your CSG Allocation in accordance with Section 6.2. If requested by you, we will use commercially reasonable efforts for up to one hundred eighty (180) days to assist you in this process; or ii. Cancel the relevant portion of your CSG Allocation pursuant to Section 10.1 (a)(iii) below. (c) You are obligated to maintain compliance with the applicable Eligibility Requirements and to notify us if you plan to be out of compliance. You acknowledge that your failure to maintain compliance with the applicable Eligibility Requirements may result in NSP not paying you Bill Credits and our cancellation of the relevant CSG Allocation. (d) This Agreement confers to us no right to interfere with, or require our consent to, your sale or transfer of your real property. ARTICLE 7 FINANCING 7.1 Consent. We may, without your prior consent, in whole or in part, (i) assign, mortgage, pledge or otherwise collaterally assign our interests in this Agreement and the Project to any Financing Party, (ii) directly or indirectly assign this Agreement and the Project to a Project Owner or an affiliate or subsidiary of ours, (iii) assign this Agreement and the Project to any entity through which we are obtaining financing or capital for the Project; and (iv) assign this Agreement and the Project to any person succeeding to all or substantially all of our assets. In the event of any such assignment (other than a collateral assignment), we shall be released from all our liabilities and other obligations under this Agreement (only upon assumption of our obligations hereunder by the assignee). However, any assignment of our rights and/or obligations under this Agreement shall not result in any change to your rights and obligations under this Agreement. A Financing Party may assign its interest at any time, and without your consent, to another person or another Financing Party. If the Financing Party or its successor becomes the owner of our interest by foreclosure or otherwise, it may sell or transfer that interest to any third party without your consent. Notwithstanding anything to the contrary in this Agreement, we must provide notice to you notice of any assignment or reassignment of this Agreement within ten (10) days of such event, although our failure to do so shall not invalidate an assignment or reassignment otherwise authorized under this Agreement. 7.2 Changes. You acknowledge that we may obtain construction and long-term financing from one or more Financing Parties. Both Parties agree in good faith to consider and PROPRIETARY AND CONFIDENTIAL 9 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 to negotiate changes or additions to this Agreement that may be reasonably requested by the Financing Parties; provided, that such changes do not alter the fundamental terms of this Agreement. In connection with any assignment by us (or the Financing Parties, as described below), you agree to execute any consent, estoppel or acknowledgement in form and substance reasonably acceptable to such Financing Parties (in no event shall you be required to sign such consent, estoppel or acknowledgement if it indirectly modifies the fundamental terms of this Agreement). If this Agreement applies to more than one Project, you also agree to execute a separate Agreement for each Project if requested by us in connection with such assignment. 7.3 Notice and Opportunity to Cure. You may not terminate or suspend your performance due to our Event of Default unless you have given the Financing Parties prior written notice of your intent to so terminate or suspend this Agreement. In your notice you will describe the circumstances giving rise to our default, and provide the Financing Parties with the opportunity to cure the default within thirty (30) days after receipt of such notice or any longer period provided for in this Agreement. If our default reasonably cannot be cured by the Financing Parties within the period provided and the Financing Parties commence and pursue to cure of such default within that period, the period for cure will be extended for a reasonable period of time under the circumstances, but not to exceed an additional sixty (60) days. The Parties’ respective obligations under this Agreement will otherwise remain in effect during the cure period. If the Financing Parties or an assignee (including any buyer or transferee) acquires title to or control of our assets and within the applicable time periods cures all defaults under this Agreement existing as of the date of such change in control in the manner required by this Agreement and which are capable of cure by a third party or entity, then such Financing Parties or third party transferee will no longer be in default under this Agreement, and this Agreement will continue in full force and effect. ARTICLE 8 PRIVACY; CONFIDENTIALITY; PUBLICITY 8.1 Subscriber Data. Other than in accordance with the Agency Agreement, US Solar will not disclose Project Subscriber’s Account Information, Subscriber Energy Usage Data, Bill Credits or any other personal information of Project Subscriber to any person except (i) to NSP, to the extent required by Applicable Laws or the SRC Contract, for the purpose of administration of the Project, Project CSG eligibility, and Project Subscriber CSG eligibility; (ii) to attorneys, accountants, advisors, and agents of US Solar to the extent necessary for them to render advice or perform professional services associated with the Project or this Agreement; (iii) as otherwise required by Applicable Laws. US Solar is not requesting, and Project Subscriber agrees not to provide US Solar without US Solar’s consent, any “private data on individuals,” “confidential data on individuals” or other “not public data” on individuals, as those terms are used and defined the Minnesota Data Practices Act. 8.2 Trade Secret Information. We may provide data that we designate as trade secret to you. Under Minnesota Statutes section 13.37, subdivision 1(b), you are responsible for determining whether data marked as trade secret by us qualifies as trade secret under the law. For data that you determine is trade secret, you will not share the data with any other person or entity except as required by law. If you receive a request under the Minnesota Government Data Practices Act for access to data that we designated as trade secret but you have determined is not trade secret, then you will use best efforts to give us 10 days’ notice before releasing the data in order to permit us to exercise whatever legal remedies are available to prevent disclosure. PROPRIETARY AND CONFIDENTIAL 10 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 8.3 Publicity. The Parties shall endeavor to coordinate and cooperate with each other when making public announcements related to the execution and existence of this Agreement or related to Project Subscriber’s participation in a Project, and each Party shall have the right to promptly review, comment upon and approve any publicity materials, press releases or other written public statements by the other Party that refer to, or that describe any aspect of, this Agreement. Notwithstanding the foregoing, the Parties agree to the use each other’s logos in their respective marketing materials in the context of listing counterparties with whom a Party has transacted. ARTICLE 9 DISPUTE RESOLUTION 9.1 NSP Disputes. (a) Any dispute or question which you have with respect to the application by NSP of the Bill Credits to your retail electric bill, in particular the applicable Bill Credit Rate that NSP used to determine the amount of your Bill Credits, shall be directed by you to NSP for resolution. You may request that US Solar assist you in this respect. You acknowledge that your obligation to make your SunscriptionSM Payments is independent of the amount of your Bill Credits. (b) All disputes arising with respect to the contract between NSP and US Solar shall be resolved by negotiation and, in the absence of a resolution, by the Minnesota Public Utilities Commission (“MPUC”), as per the SRC Contract. Any issue or dispute identified by you with respect to NSP’s actions with respect to the Project or the Bill Credits other than as described in Section 9.1(a) shall be referred to US Solar. If the dispute or question is not resolved to the Project Subscriber’s satisfaction, you have the right to refer the issue directly to the MPUC at the following address: Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, MN 55101 Tel: (651) 296-7124 Toll free: (800) 657-3782 Fax: (651) 297-7073 consumer.puc@state.mn.us 9.2 Disputes between Parties. (a) Any dispute or issue a Party may have arising from or related to this Agreement, which are not resolved by communications between Project Subscriber and US Solar representatives in person, over the phone, or electronically shall be submitted to the other Party in writing. Each Party shall assign an officer or senior management executive to address or negotiate a resolution with the other Party. The Parties agree to attempt to reach a resolution of such dispute within ten (10) days or such longer period as the Parties may agree. PROPRIETARY AND CONFIDENTIAL 11 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 (b) We shall perform any calculation called for hereunder and do so in a commercially reasonable manner and in accordance with industry accepted standards. Any dispute regarding the results of any such calculation shall be resolved by having an independent consultant having nationally recognized credentials, such as Navigant Consulting, Inc. or Leidos, Inc., perform the calculation at the disputing party’s expense, unless the calculation is found to be in error by an amount greater than or equal to three percent (3%), in which case we shall incur the independent consultant’s costs. Such consultant’s results shall be binding on the Parties absent manifest error. (c) Failing resolution of any dispute by the Parties in accordance with the provisions of Section 9.2(a), such dispute shall be subject to litigation in a court of competent jurisdiction in Hennepin County, Minnesota. As a condition precedent to filing or pursuing any legal or equitable remedy, the Parties agree to participate in good faith in non-binding mediation through the use of a mutually acceptable neutral mediator. Each Party shall pay one-half (1/2) the cost of the mediator. Each Party shall be responsible for its own costs related to such mediation. If the Parties have not resolved their dispute within 30 calendar days after the request for mediation, any Party may resort to any available legal remedies. ARTICLE 10 CANCELLATION EVENTS; EVENTS OF DEFAULT; REMEDIES 10.1 Cancellation Events. (a) You may cancel all or part of your CSG Allocation relating to a particular Project to the extent that: i. Construction of that Project is not completed within twenty-four (24) months of our receipt of NSP determining that Project’s CSG application is complete, as extended by Force Majeure Events, and additional Project capacity does not exist; ii. That Project becomes ineligible, in whole or in part, as a CSG during the Term and the related SRC Contract is terminated, and additional Project capacity does not exist; or iii. You become aware that, due to relocation or other material changes, your CSG Allocation will no longer satisfy the applicable Eligibility Requirements and you elect not to sell or transfer, or cannot sell or transfer, your CSG Allocation to another eligible NSP customer. iv. Before the Project’s CSG application is deemed complete by NSP, if the legislature, MPUC, NSP, or any other entity significantly reduces the credit base rate, or basis of escalation of that rate from that anticipated at the time of acceptance of the proposal by you. v. You provide 15 day’s written notice to US Solar of a your intent to cancel when a Force Majeure Event has caused the interruption of the production of any power from the Project for a period of 365 consecutive days or longer. If within 15 days’ of delivery of your notice to cancel we repair or replace the Project such that it is producing at least 50% of the estimated production enumerated in Exhibit D to this Agreement, your cancellation shall be deemed ineffective. PROPRIETARY AND CONFIDENTIAL 12 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 (b) We may cancel all or part of your CSG Allocation relating to a particular Project to the extent that: i. You fail to meet the applicable Eligibility Requirements at any time during the Term; ii. Your CSG Allocation is transferred by operation of law as defined in Section 10.7 to an ineligible person or entity and is not sold to an eligible transferee within the time provided; iii. Prior to the start of Project construction, we are not able to confirm your creditworthiness; or iv. Prior to the start of Project construction, we determine we are unable to develop the Project under commercially reasonable terms, including, but not limited to, NSP disallowing the development of Project(s), NSP imposes costs in excess of the average for approved Projects, or additional Project capacity does not exist. (c) Cancellation will be effective upon written notice by the cancelling Party to the other Party, including a description of the circumstances giving rise to the Cancellation Event and the specific portion of CSG Allocation canceled. 10.2 Events of Default. Each of the following events shall be an Event of Default under this Agreement: (a) A Party breaches any material representation or warranty or fails to perform a material obligation set forth in this Agreement and does not cure such breach or failure within thirty (30) days of written notice of the breach from the non-defaulting Party. (b) With respect to Project Subscriber, failure to make any SunscriptionSM Payment when due, and failure to cure the default within thirty (30) days after written notice of such failure from US Solar. 10.3 Cancellation Remedies. (a) In the case of a cancellation pursuant to Sections 10.1(a)(i), (ii) or (v) or 10.1(b)(iii) or (iv), you will owe nothing with respect to the amount of CSG Allocation cancelled. (b) In the case of a cancellation pursuant to Sections 10.1(a)(iii) or 10.1(b)(i) or (ii) (each, a “Covered Cancellation Event”), you will be responsible for paying the Cover Cost Amount, if any, with respect to the amount of CSG Allocation cancelled, subject to the following: i. We will use commercially reasonable efforts for up to one hundred eighty (180) days after such cancellation (“Cancellation Replacement Period”) to secure one or more Eligible Transferee who will subscribe to the entire cancelled portion of your CSG Allocation at no less than your SunscriptionSM Rate. If we are successful, your Cover Cost Amount will be zero. PROPRIETARY AND CONFIDENTIAL 13 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 ii. To the extent during the Cancellation Replacement Period we are unsuccessful in securing one or more Eligible Transferees who will subscribe to the entire cancelled portion of your CSG Allocation, the Unsubscribed Energy rate provided for in the CSG Tariff will be used in lieu of a transferee SunscriptionSM Rate for purposes of determining the Cover Cost Amount. (c) During the Cancellation Replacement Period and before paying any Cover Cost Amount or other cancellation related amounts, you will be responsible for making SunscriptionSM Payments that will be deemed to equal the full amount of your SunscriptionSM Payments had no cancellation occurred. (d) At the end of the Cancellation Replacement Period, we will determine the Cover Cost Amount and other amounts owing by you and provide you written notice of same. These amounts will become due and payable by you within thirty (30) days of your receipt of this notice. (e) After paying the Cover Cost Amount, your remaining SunscriptionSM Payments will reflect your appropriately reduced CSG Allocation. (f) You will be responsible for reimbursing us for any costs we reasonably incur in identifying an Eligible Transferee who will subscribe to the cancelled portion of your CSG Allocation and in the execution of related documentation. (g) Upon cancellation of the entire CSG Allocation, we may terminate this Agreement in its entirety. 10.4 Default Remedies. In the event a defaulting Party fails to cure an Event of Default within the applicable cure period, the non-defaulting Party may: (a) With respect to an Event of Default by Project Subscriber: i. We may terminate this Agreement immediately by notifying you in writing. ii. We may direct NSP to remove you as a subscriber with respect to the Project, and you will no longer receive Bill Credits associated with the CSG Allocation. iii. You will owe the Cover Cost Amount, if any. 1. We will use commercially reasonable efforts for one hundred and eighty (180) days after your Event of Default (“Default Replacement Period”) to secure one or more Eligible Transferee who will subscribe to your entire CSG Allocation at no less than your SunscriptionSM Rate or a lesser rate as agreed by the Parties. If we are successful, your Cover Cost Amount will be zero. 2. To the extent during the Default Replacement Period we are unsuccessful in securing one or more Eligible Transferee who will subscribe to your entire CSG Allocation, the Unsubscribed Energy rate provided for in the CSG Tariff will be used in lieu of a transferee SunscriptionSM Rate for purposes of determining the Cover Cost Amount. PROPRIETARY AND CONFIDENTIAL 14 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 iv. You will owe an amount equal to the SunscriptionSM Payments that would have been payable by you during the Default Replacement Period absent the Event of Default. v. Once one or more Eligible Transferee(s) have been located but no later than at the end of the Default Replacement Period, we will determine the Cover Cost Amount and other default-related amounts owing by you and provide you with written notice of same. These amounts will become due and payable immediately by you upon your receipt of this notice. vi. You will be responsible for reimbursing us for any costs we reasonably incurred in attempting to identify an Eligible Transferee and in the execution of related documentation. vii. Upon termination of this Agreement, we shall have no further obligations to you hereunder. (b) With respect to an Event of Default by US Solar: i. Prior to the COD of the final Project, you may terminate this Agreement at any time by notifying us in writing. ii. After the COD of the final Project, you may terminate this Agreement only if our default results in your CSG Allocation not producing any Subscribed Energy for one hundred eighty (180) consecutive days or more. iii. Upon termination, you shall have no further obligation to us except for obligations arising or accruing prior to termination. 10.5 Duty to Mitigate Damages. Notwithstanding anything to the contrary in this Agreement, but without extending any specific timelines prescribed herein, both parties recognize that they have a duty to mitigate any damages, costs, expenses, or fees incurred as a result of a breach or default or early termination of this Agreement. 10.6 No Consequential Damages. No Party shall be liable to the other Party for any indirect, special, punitive, exemplary, incidental, or consequential damages, whether arising in contract, tort, under statute, or in equity, and each Party waives its rights to any such damages. In no event will the Cover Cost Amount constitute, or be deemed to constitute, indirect, special, punitive, exemplary, incidental, or consequential damages. 10.7 No Warranty; Exclusive Remedies. NO WARRANTY OR REMEDY, WHETHER STATUTORY, WRITTEN, ORAL, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE SHALL APPLY. The remedies set forth in this Agreement shall be the Parties’ sole and exclusive remedies for any claim or liability arising out of or in connection with this Agreement, whether arising in contract, tort (including negligence), strict liability or otherwise. 10.8 Involuntary Transfers. Upon transfer of title or control of the Eligible Address or your CSG Allocation, or portion thereof, due to bankruptcy, foreclosure or operation of law for other reasons, you or the transferee must notify US Solar immediately. During any period of time in which a trustee, receiver, or creditor is in possession of the Eligible Address and assumes responsibility as the account-holder with NSP at the Eligible Address, such transferee shall be deemed to have succeeded to your rights and obligations under this Agreement at the Eligible PROPRIETARY AND CONFIDENTIAL 15 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 Address during the period of its possession. Upon the transfer of title to the property at the Eligible Address and the CSG Allocation to a creditor or other third party, the transferee shall notify US Solar of the transfer. If the transferee(s) meet all relevant Eligibility Criteria, the transfer shall be treated as a sale or transfer of the CSG Allocation to such transferees upon completion of the conditions set forth in Section 6.2. If the transferee does not meet the transfer conditions, then the transferee(s) shall be required immediately to sell or transfer the CSG Allocation or applicable portion to an eligible buyer in accordance with Section 6.2. ARTICLE 11 MISCELLANEOUS 11.1 Notices. Notices, or other documents required or permitted by this Agreement must be given by personal delivery, reputable overnight courier, email, or U.S. certified mail postage prepaid and shall be sent to the respective parties at the address listed on the first page of this Agreement. Notice shall be deemed delivered (i) the day of delivery, if delivered by hand during the receiving party’s regular business hours or by e-mail before or during the receiving party’s regular business hours, (ii) upon the date of actually delivery or refusal shown on the courier’s delivery receipt if sent by overnight courier, and (iii) on the fourth business day after deposit in the U.S. mail if sent by certified mail. Any party may change the address for notice by notice to the other party. 11.2 No Third Party Beneficiaries. Nothing in this Agreement shall be construed to create any duty to, or standard of care with reference to, or liability to, any person not a party to this Agreement. Excepting the rights of Financing Parties and assignees expressly provided for herein, no provision of this Agreement is intended to nor shall it in any way provide any rights to any third party or inure to the benefit of any third party so as to constitute any such person a third party beneficiary under this Agreement, or of any one or more of the terms of this Agreement, or otherwise give rise to any cause of action in any person not a party to this Agreement. 11.3 Entire Agreement; Amendments. It is mutually understood and agreed that this Agreement, and the Exhibits attached hereto, constitutes the entire agreement between Project Subscriber and US Solar and supersedes any and all prior oral or written understandings, representations or statements, and that no understandings, representations or statements, verbal or written, have been made which modify, amend, qualify or affect the terms of this Agreement. This Agreement may not be amended except in a writing executed by both parties; provided, however, that, US Solar may amend Project and Project Site information and allocate your CSG Allocation among Projects and Project Sites (prior to relevant CODs) without Project Subscriber’s prior consent, subject to the Eligibility Requirements for the quantity of Project Subscriber’s Subscribed Energy and location of NSP account(s) as per this Agreement. 11.4 Governing Law. This Agreement is made in Minnesota and shall be governed by the laws of the State of Minnesota without regard for any conflict of law provisions. 11.5 SRC Contract and CSG Tariff. This Agreement contains summaries of, and makes reference to, certain provisions of the SRC Contract and CSG Tariff. While we believe these summaries and references to be accurate and fair, any conflict between such summaries and references shall be resolved in favor of the relevant provisions contained in SRC Contract and CSG Tariff. You are urged to review these documents. PROPRIETARY AND CONFIDENTIAL 16 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 11.6 Waiver. Neither Party shall be deemed to have waived any provision of this Agreement or any remedy available to it unless such waiver is in writing and signed by the Party against whom the waiver would operate. Any waiver at any time by either Party of its rights with respect to any matter arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent or other matter. 11.7 Relationship of Parties. The duties, obligations and liabilities of each of the Parties are intended to be several and not joint or collective. This Agreement shall not be interpreted or construed to create an association, joint venture, fiduciary relationship or partnership between the Parties or to impose any partnership obligation or liability or any trust or agency obligation or relationship upon either Party. US Solar and Project Subscriber shall not have any right, power, or authority to enter into any agreement or undertaking for, or act on behalf of, or to act or be an agent or representative of, or to otherwise bind, the other Party. 11.8 Severability. Should any provision of this Agreement be or become void, illegal or unenforceable, the validity or enforceability of the other provisions of the Agreement shall not be affected and shall continue in full force. The Parties will, however, use commercially reasonable efforts to agree on the replacement of the void, illegal or unenforceable provisions with legally acceptable clauses which correspond as closely as possible to the sense and purpose of the affected provision and the Agreement as a whole. 11.9 Counterparts. This Agreement may be executed in two or more counterparts and by different parties on separate counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original. 11.10 Audit. To the extent required by Minnesota Statutes, section 16C.05, subdivision 5, our records, books, documents, and accounting procedures and practices relating to work performed pursuant to this Agreement shall be subject to examination by the Project Subscriber and the Legislative Auditor or State Auditor. We shall permit the Project Subscriber or its designee to perform such examination at a mutually agreeable time during regular business hours. 11.11 Successors and assigns. This Agreement and the rights and obligations under the Agreement are binding upon and shall inure to the benefit of US Solar and Project Subscriber and their respective successors and permitted assigns. (SIGNATURE PAGES TO FOLLOW) PROPRIETARY AND CONFIDENTIAL 17 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 City of Lake Elmo Signature: Printed Name: Title: Date: US Solar LLC Signature: Printed Name: Title: Date: PROPRIETARY AND CONFIDENTIAL 18 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT A DEFINITIONS 1. Applicable Laws. Any law, statute, rule, regulation, ordinance, order (including orders issued by the MPUC), tariff, judgment, or other legally binding restriction or ruling issued by a governmental authority which is applicable to the Project, US Solar, Subscribers, CSGs or this Agreement. 2. Bill Credit Rate. A dollar amount per kilowatt-hour reflected in the CSG Tariff with respect to specific classes of NSP customers to be used for determining a Subscriber’s Bill Credit. 3. Cancellation Event. One or more event described in Section 10.1(a)-(b). 4. Cover Cost Amount. (a) With respect to a sale or transfer by you pursuant to Section 6.2, the positive difference, if any, of: i. the net present value (using a discount rate of 4%) of the projected payments by you over the Term post-transfer with respect to the transferred portion of your CSG Allocation, had this Agreement remained unchanged for the remaining Term (plus any other amounts previously accrued and owed by you); minus ii. the net present value (using a discount rate of 4%) of the projected payments to be made by your transferee with respect to the transferred portion of your CSG Allocation over the remaining Term. (b) With respect to a Covered Cancellation Event, the positive difference, if any, of: i. the net present value (using a discount rate of 4%) of the projected payments by you over the Term post-cancellation with respect to the cancelled portion of your CSG Allocation, had this Agreement remained unchanged for the entire Term (plus any other amounts previously accrued and owed by you); minus ii. the net present value (using a discount rate of 4%) of the projected payments to be made by an Eligible Transferee (or, as applicable, by NSP for the Unsubscribed Energy associated with the portion CSG Allocation not transferred) with respect to the cancelled portion of your CSG Allocation over the remaining Term. (c) With respect to an Event of Default by you, the positive difference, if any, of: i. the net present value (using a discount rate of 4%) of the projected payments by you over the Term post-default, had this Agreement remained unchanged with respect to your entire CSG Allocation for the entire Term (plus any other amounts previously accrued and owed by you); minus ii. the net present value (using a discount rate of 4%) of the projected payments to be made by an Eligible Transferee (or, as applicable, by NSP for the Unsubscribed Energy associated with the portion CSG Allocation not transferred) with respect to the entire CSG Allocation over the remaining Term. PROPRIETARY AND CONFIDENTIAL 19 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 5. CSG Tariff. The Solar Rewards Community Program tariff of NSP’s rate book, as amended or updated and any successor thereto. 6. Eligible Address. A Subscriber’s NSP service address that meets the Eligibility Requirements. 7. Eligible Transferee. A person or entity who meets the applicable Eligibility Requirements and meets the conditions set for in Section 6.2(a)-(e) 8. Financing Party. A person or persons providing construction or permanent financing in connection with construction, ownership, operation and maintenance of the Project, or if applicable, any person to whom the ownership interest in the Project has been transferred, subject to a leaseback of the Project from such person. 9. Force Majeure Event. Any act or event that prevents the affected Party from performing its obligations in accordance with the Agreement, if such act or event is beyond the reasonable control, and not the result of the fault or negligence, of the affected Party and such Party had been unable to overcome such act or event with the exercise of due diligence (including the expenditure of reasonable sums). Subject to the foregoing conditions, “Force Majeure Event” shall include the following acts or events: (i) natural phenomena, such as storms, hurricanes, floods, lightning, volcanic eruptions and earthquakes; (ii) explosions or fires arising from lightning or other causes unrelated to the acts or omissions of the Party seeking to be excused from performance; (iii) acts of war or public disorders, civil disturbances, riots, insurrection, sabotage, epidemic, terrorist acts, or rebellion; (iv) strikes or labor disputes (except strikes or labor disputes caused solely by employees of Operator or as a result of such Party’s failure to comply with a collective bargaining agreement); (v) action or inaction by a Governmental Authority (unless Subscriber is a Governmental Authority and Subscriber is the Party whose performance is affected by such action nor inaction); and (vi) any Force Majeure Event under this Agreement. A Force Majeure Event shall not be based on the economic hardship of either US Solar or the Subscriber. 10. MPUC. Minnesota Public Utilities Commission. 11. NSP. Northern States Power Company, a wholly owned subsidiary of Xcel Energy Inc. 12. SunscriptionSM Rate. A dollar amount per kilowatt-hour with respect to the Subscribed Energy produced by Project Subscriber’s CSG Allocation, as set forth in Section 1.5(a), used for determining Project Subscriber’s SunscriptionSM Payments. 13. Taxes. Any federal, state, or local ad valorem, property, occupation, generation, privilege, sales, use, consumption, excise, or transaction tax, other taxes, regulatory fees, surcharges, or other similar charges, but does not include any income taxes imposed on US Solar for payments made by you and received by us under this Agreement. Any conflict in the meaning of a term used both herein term and in the SRC Contract shall be resolved in favor of the meaning given to such term in the SRC Contract. PROPRIETARY AND CONFIDENTIAL 20 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT B PROJECT(S) AND PROJECT SITE(S) PROPRIETARY AND CONFIDENTIAL 21 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT C BILL CREDIT TYPES, CURRENT BILL CREDIT RATES, CURRENT SUNSCRIPTIONSM RATES Account Number Premise Number Account Type 51-4504807-7 303135351 Small General Service 302177887 Small General Service 302271471 Small General Service 51-5356323-8 303567606 General Service 303035927 General Service 51-4580376-5 304120112 Small General Service 302429100 Small General Service General Service subscription rate: $0.1199/kWh Small General Service subscription rate: $0.1444/kWh Bill Credit Value. We make no representation or warranty as to the likelihood that any Bill Credits will create any specific amount of economic benefit at any time or over any period of time or over the Term of this Agreement as a whole, or that the Bill Credits will create a positive economic benefit to you. The estimate of potential benefits contained herein are based on a number of assumptions about estimated Subscribed Energy Bill Credit Rates, Applicable Laws currently in place, NSP’s retail electrical rates, and a number of other factors beyond the control of US Solar. Any estimate by US Solar herein or elsewhere given to Project Subscriber as to any expected benefit to Project Subscriber from the Bill Credits at any time or over any period of time is purely an estimate based on the information available to US Solar and related assumptions at the time and is not a guarantee that any positive economic benefit will accrue to Project Subscriber from the Bill Credits or that any specific amount of benefits will accrue to Project Subscriber at any time, or over any period of time, or over the Term of the Agreement. PROPRIETARY AND CONFIDENTIAL 22 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT D ESTIMATE OF SUBSCRIBED ENERGY Year Expected Subscription (in kWh) 1 129,679 2 129,031 3 128,386 4 127,744 5 127,105 6 126,469 7 125,837 8 125,208 9 124,582 10 123,959 11 123,339 12 122,723 13 122,109 14 121,498 15 120,891 16 120,286 17 119,685 18 119,087 19 118,491 20 117,899 21 117,309 22 116,723 23 116,139 24 115,558 25 114,981 Production. Other than as provided under Section 4.7 of the Agreement, US Solar makes no representation or warranty as to the likelihood that the Project will generate any specific amount of electricity or sufficient electricity so as to create any specific or minimum Bill Credits to Project Subscriber during any period of time or over the Term of the Agreement as a whole. The production estimate described herein is based on a number of assumptions about expected solar insolation at the Project Site, and performance of the modules and other Project equipment, the accuracy of production estimating software and other factors affecting possible production which are not within the control of US Solar. Circumstances experienced at the Project will deviate from historical data and other assumptions and projections. The actual production of energy of electricity by the Project and delivery of energy, including Subscribed Energy, by the Project is also subject to lack of sunlight, other adverse weather, equipment failures, curtailments or outages by NSP, Force Majeure Events, and other events beyond the control of US Solar. The production estimate and any other estimate communicated by US Solar to Project Subscriber of expected energy production from the Project at any time or over any period of time is purely an estimate based on the information available to US Solar at the time and is not a guarantee that any such production will occur or that any particular amount of Subscribed Energy will be received by Project Subscriber at any time or over any period of time, including the Term of this Agreement. PROPRIETARY AND CONFIDENTIAL 23 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT E [RESERVED] PROPRIETARY AND CONFIDENTIAL 24 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT F FORM OF SRC CONTRACT This is a standard contract from Xcel (template can be found on Xcel’s website at https://www.xcelenergy.com/staticfiles/xe/Marketing/Files/MN-SRC-Standard-Contract.pdf). To be executed and inserted as Projects near construction. PROPRIETARY AND CONFIDENTIAL 25 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT G FORM OF AGENCY AGREEMENT This is a standard contract from Xcel (template can be found on Xcel’s website at https://www.xcelenergy.com/staticfiles/xe/Marketing/Files/MN-SRC-Subscriber-Agency-Agreement.pdf). To be executed and inserted as Projects near construction. PROPRIETARY AND CONFIDENTIAL 26 © Copyright 2017 United States Solar Corporation 508840v2 DDS LA515-1 EXHIBIT H PROJECT SUBSCRIBER DATA 1. Project Subscriber (name as shown on NSP account) LAKE ELMO CITY OF 2. NSP service address (Eligible Address): 3800 Laverne Ave N Lake Elmo, MN 55042-9629 3. NSP account number: 51-4504807-7, 51-5356323-8, 51-4580376-5 4. Average annual electrical consumption: 108,065 kWh (“AAEC”) 5. 120% of AAEC: 129,678 kWh 100 N 6th Street, Suite 218C Minneapolis, MN 55403 612.294.6978 www.us-solar.com SUNSCRIPTIONSM OVERVIEW Sunscription Introduction US Solar’s flat-rate Sunscription allows the City of Lake Elmo (“Lake Elmo”) to save an estimated $127,674 by locking in its energy rate for the next 25 years. There is no upfront cost. Savings for General Service Rate Class Meters: Savings for Small General Service Rate Class Meters: Existing Subscribers Our agreement has been vetted by dozens of public entities. Here is a list of public entities that have signed the same agreement we offer to you: • City of St. Cloud • City of Minneapolis • City of Chanhassen • City of Rogers • City of Robbinsdale • City of Edina • City of St. Anthony • Met Council Transit • Met Council Enviro • Hopkins Schools • Sartell-St. Stephen Schools • Buffalo-Hanover-Montrose Schools • Becker Schools • Orono Schools • Robbinsdale Schools • University of Minnesota Cost-Benefit Analysis 2017 Bill Credit Rate for General Service Rate Class Meters $0.12296/kWh 2017 Bill Credit Rate for Small General Service Rate Class Meters $0.14798/kWh 30-Yr Average Annual Escalator 2.75% Sunscription Rate for General Service Rate Class Meters $0.1199/kWh Sunscription Rate for Small General Service Rate Class Meters $0.1444/kWh Sunscription Annual Escalator 0% PROPRIETARY AND CONFIDENTIAL BEYOND THE ROOFTOP SUNSCRIPTIONSM PROPOSAL: LAKE ELMO November 2, 2017 Page | 2 COVER LETTER November 2, 2017 Kristina Handt, City Administrator City of Lake Elmo 3880 Laverne Ave N Lake Elmo, MN 55042 Dear Kristina, Thank you for the opportunity to present this offsite solar and SunscriptionSM introduction to you and your team. We at United States Solar Corporation (“US Solar”) are thrilled to help the City of Lake Elmo lock in the significant, long-term savings opportunity currently available under Minnesota’s community solar program. US Solar is a turnkey solar developer and owner/operator. We coordinate all project details – development, permits, finance, construction, management, insurance, maintenance, and monitoring. The enclosed proposal includes details about our company, our strategic alliance partners, and our Sunscription proposal. The US Solar team provides an unparalleled combination of broad experience and strong local roots. Our team has a proven track record of building and financing distributed solar projects. US Solar’s principals have developed and financed commercial solar projects and residential solar programs with a notional value of over $1 billion. We ensure that each one of our solar projects is built to the highest capital markets standards in order to maximize the savings available to our subscribers. Please contact us with any questions, comments, or points of clarification. We look forward to working with you. Sincerely, Reed Richerson - COO United States Solar Corporation 100 N 6th St., Suite 218C Minneapolis, MN 55403 W: (612) 260-2230 C: (916) 704.2720 E: reed.richerson@us-solar.com This letter is intended solely as a basis for providing indicative pricing and terms and for engaging in further discussion. It does not evidence any agreement to make an investment or any other binding commitment on the part of US Solar or any other party. Such investment or other binding commitment will arise only upon the execution of definitive, binding agreements. Any subscriber transaction would be contingent on prior credit review. US Solar requests that the recipient keep the terms of this letter confidential. Page | 3 SUNSCRIPTIONSM SunscriptionSM [suhn-skrip-shuhn] noun 1. a contract with US Solar designed to provide you with significant, long term savings 2. an opportunity to enjoy solar benefits without the planning and logistical hassles of an onsite solar project 3. a way to exercise your new right to choose an alternative energy partner The Solar*Rewards Community program recently launched in Minnesota is the first scalable community solar program in the US and has immediately established the country’s smartest solar regime. Schools, towns, businesses, and nonprofits throughout the Xcel service territory have embraced the opportunity to fix costs for the long term by “subscribing” to a solar garden and benefitting from cost efficiencies of scale, while also avoiding the siting, construction, and maintenance complexities of an onsite system. US Solar’s ability to connect subscribers with solar projects located offsite allows us to develop projects of the ideal scale at ideal sites, where we can optimize the orientation, spacing, and tilt of our solar modules to deliver the most solar energy at the lowest cost. Now, US Solar is offering the City of Lake Elmo the opportunity to lock in savings for years to come with a Sunscription Agreement. HOW COMMUNITY SOLAR AND A SUNSCRIPTION WORK • US Solar builds a local Solar Garden at an ideal offsite location. • The Solar Garden produces energy that is delivered to Xcel. • Xcel continues to deliver Subscriber all electricity required onsite. • Xcel credits Subscriber’s bill for value of Solar Garden energy. Page | 4 HOW DO YOU SAVE MONEY? We estimate the City of Lake Elmo would gain a net value of $127,674 for no upfront cost. By contracting for a Sunscription with US Solar, you can expect to save money over time as the Bill Credit rate that Xcel pays you increases higher and higher above your Sunscription rate with US Solar. The tables below show the expected savings the City of Lake Elmo will achieve based on a Sunscription sized to 129,679 kWh, assuming 103,398 kWh are allocated to General Service rate class meters and 26,281 kWh are allocated to Small General Service rate class meters. The expected savings also assumes the relevant Applicable Retail Rate (“ARR”, described below) increases at 2.5% per year. With your Sunscription in place, Xcel will continue to deliver you all of your grid electricity, with no interruption of service. For an example of how a Bill Credit will appear on your utility bill, please see Appendix A. Our subscribers receive Bill Credits that are valued using two components: the ARR, equal to the average revenue per kWh that Xcel received in the prior year, plus a financial premium representing the value of the solar renewable energy certificates (“RECs”), which are sold to Xcel. For a community solar project of over 250 kW (like most US Solar Gardens under development), the REC enhancement is fixed at $0.02/kWh. As shown in the table below, a subscriber to a typical US Solar Solar Garden will receive the “Enhanced Bill Credit” rate $0.1199/kWh for General Service meters and $0.1444/kWh for Small General Service meters. Selling the RECs to Xcel increases the value of Bill Credits you will receive from Xcel. Your Sunscription with US Solar supports the development of nearby Solar Gardens, and secures your right to receive payments from Xcel for supporting local renewable energy. You can expect a Sunscription to save you money simply because the Bill Credit rate you receive from Xcel is expected to be higher than your Sunscription rate. For an overview of pricing and Sunscription product types, see Our Proposal to the City of Lake Elmo below. Page | 5 Page | 6 OUR PROPOSAL FOR CITY OF LAKE ELMO At US Solar, we strive to offer subscribers not just savings, but also flexibility. While the great majority of our subscribers find our Flat Rate Sunscription to offer the best value, we are happy to work with you in customizing a product that works best for you. Flat Rate Sunscription • The rate you pay US Solar is flat, with absolutely no escalator. • The rate is set at about today’s Bill Credit Rate. The rate stays flat and the Bill Credit Rate is expected to increase. • We are offering the City of Lake Elmo a Sunscription Rate of $0.1199 per kWh for General Service Rate Class Meters and $0.1444 per kWh for Small General Service Rate Class Meters. Fixed Rate Sunscription • Expect about 15% year one savings, depending on rate class and usage. • Over time, the rate steps up with a modest escalator that is fixed on day one. • This structure is used by the majority of solar projects in the US today. • We can offer City of Lake Elmo Fixed Rate Pricing upon request. With either structure: • You reduce the impact of future utility rate spike surprises. • The more utility rates increase, the more you save. • You lock in a large portion of your operating costs for 25 years. Page | 7 INSIGHT INTO YOUR OFFSITE SOLAR GARDEN Offsite solar solutions save you the logistical issues of planning, constructing and maintaining a solar project on your property. However, we can provide you with the same ability to view and monitor the Solar Garden, as you would expect from an onsite system. US Solar is designing a customized platform for our Solar Garden subscribers, one of the first platforms designed specifically to monitor community solar projects. Our online portal will not only provide subscribers with performance information once systems are up and running, but it will also provide you with status reports regarding project development and construction. We can also provide you with a customized monitoring portals, allowing you to display information regarding the Solar Garden performance – energy and environmental – on video monitors or kiosks anywhere in the company. These customized portals can be tailored to inform and educate your executives, employees and customers about the performance and benefits of the Solar Gardens you are supporting. OPTIONAL ADDED BENEFIT: EMPLOYEE SUBSCRIPTIONS While a Sunscription has long-term, financial benefits for City of Lake Elmo, US Solar also has the potential to provide long-term benefits to its employees. US Solar is preparing to launch a residential Sunscription product in association with select affinity partners. We would be thrilled to offer an exclusive period for your employees to subscribe to a Solar Garden for no upfront cost, saving them money and driving employee engagement and loyalty. If this opportunity interests you, US Solar can work with your team to schedule “Lunch and Learn” or similar events to explore the benefits Solar Gardens can provide your employees. We are also happy to work with you on interesting ways our Sunscription may fit within your overall employee benefits portfolio. Page | 8 FREQUENTLY ASKED QUESTIONS •A: Subscribing requires no upfront payment whatsoever. Q: How much does it cost upfront? •A: Your Sunscription is fully transferrable. You can allocate subscription capacity to a new building of yours within Xcel Energy's service territory, or you can transfer it to another eligible Xcel Energy customer. Is my Sunscription transferrable? •A: Our Solar Gardens can produce energy in all seasons and all weather. Solar Garden output will vary from day-to-day and season-to-season, as does your electric usage. Your Solar Garden SunscriptionSM will be sized to account for this variability and designed to greatly reduce, or even eliminate, your utility bill over the course of each year. Q: What happens in the winter or when it’s rainy? •A: Solar Garden energy is delivered directly to Xcel’s grid, not your facility. Our Solar Gardens are simply one of the sources feeding the grid, and you will continue to receive 100% of your electricity from Xcel with no interruption of service. Q: Will my facility be connected to the Solar Garden? •A: Your historic, annual electricity usage determines the size of your SunscriptionSM. This is another advantage –our Solar Garden subscribers receive solar benefits that are not limited by the size and/or quality of their roof. Q: How will my Solar Garden subscription be sized? •A: US Solar and its investor partners will receive the tax credit benefits for funding the capital costs of each Solar Garden, lowering the SunscriptionSM rates we are able to offer subscribers. Q: Are there tax benefits? •A: Once your assigned Solar Garden begins delivering energy to the grid, you receive bill credits from Xcel Energy and a bill from US Solar for the same amount of kWh. We will notify you as that date approaches and keep you updated along the way. Q: When do I start seeing bill credit benefits? Page | 9 US SOLAR: EXPERIENCE AND QUALIFICATIONS BROAD EXPERIENCE: THERE IS NO SUBSTITUTE US Solar is a turnkey solar developer and owner/operator. We seek to make solar energy accessible with simple, money-saving, long-term solutions that are as good for our partners as they are for the environment. US Solar’s management team brings a wealth of solar leadership and expertise from the commodities divisions of industry-leading firms such as Morgan Stanley and Bear Stearns, as well as the project development teams of BayWa R.E. and REC Solar. Community solar development and finance requires a wide range of skills that few solar companies possess. US Solar is uniquely positioned with deep experience in all facets of this market segment. Additionally, US Solar draws on a unique set of strategic partnerships. US Solar’s platform is comprised of best-in-class providers within engineering, procurement, and construction; solar equipment manufacturing; energy management; legal services; development; and finance and investment. Project Development: The US Solar team has extensive experience in solar project development. This, along with support from our strategic alliance and partners, allows for the delivery of large-scale projects – on time and within budget. Community Solar: US Solar has broad experience in the siting, development, and subscription of community solar projects in Minnesota. Our principals have worked with Fortune 500 companies, municipalities, public and private schools, and utilities across the country. We have contracted with a number of large counties, towns, school districts, and corporations in Minnesota for Solar Garden subscriptions. Project Finance: Less experienced solar providers frequently underestimate the challenge of financing the construction and operation of a portfolio of solar projects. US Solar is currently developing and financing over $150 million of projects in Minnesota, and the US Solar principals have raised project capital for projects and programs with a notional value of over $1 billion. Page | 10 LEADERSHIP TEAM The US Solar team is truly one of the most experienced teams in Minnesota. Our successful experiences span across the utility-scale, commercial, and residential markets. At the intersection of successful experiences and deep alliance partner relationships, US Solar is uniquely positioned to provide City of Lake Elmo with the highest value. Furthermore, our Minneapolis office is comprised of professionals who were raised in Minnesota, understand the community, and have been involved in Minnesota community solar from the very beginning. Martin Mobley, CEO. Marty started US Solar after forming and leading the Solar Desk at Morgan Stanley Commodities, where he led the group into the US commercial market (~40MW from ~100 rooftop/ground mount/parking canopy projects), the US residential market (three separate US residential financing programs) and the Ontario market (~30MW in from 75+ rooftop projects). Prior to Morgan Stanley, Marty was an attorney at McDermott, Will & Emery in Washington, DC. Robert Oden, EVP. Rob brings broad experience in energy tax structuring and climate markets. He has served as Director of Business Development at American Capital (Solar) Energy and as a Managing Director at Bear Stearns in New York and Houston, where principal energy investments included over $300 million in tax-credit qualified energy assets. Reed Richerson, COO. Reed brings 8+ years of solar industry project development experience in multiple market segments. He previously served as the VP of Sales and Business Development for BayWa r.e. and the National Key Account Manager for Upsolar America. Notable accomplishments include: land acquisition and development portfolio of over 180 MW, EPC of over 56 MW, and acquisition/co-development portfolio of 21 MW. Reed is a Minnesota native and has a BS in Economics from the University of Minnesota. NEXT STEPS While this proposal may seem too good to be true, there is a catch - subscription demand tremendously outweighs subscription capacity. We can provide a Sunscription Agreement to go over more specifics. Please contact us with any questions, comments, or feedback you may have in response to this proposal Thank you – we look forward to providing the City of Lake Elmo with significant, long-term energy savings through a Sunscription. Page | 11 APPENDIX A: EXAMPLE OF BILL CREDIT Xcel has provided Minnesota ratepayers with this example of a Bill Credit (note that it shows a hypothetical subscriber that is a gas and power customer with Xcel’s Public Service of Colorado subsidiary, not Northern States Power) STAFF REPORT DATE: November 7, 2017 CONSENT ITEM #: 13 MOTION TO: City Council FROM: Emily Becker, Planning Director AGENDA ITEM: Zoning Map Amendment – Rezoning City Parks REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: A number of developments have dedicated City parkland, though these parcels have not yet been properly rezoned to Public and Quasi-Public Open Space. Rezoning these parcels will more clearly indicate on the Zoning Map that these parcels are to be used for public and quasi-public open space. Other parks in the City are zoned Public and Quasi-Public Open Space. This is a “housekeeping” item. ISSUE BEFORE COUNCIL: The Council is being asked to consider a request by the City of Lake Elmo for a Zoning Map Amendment to rezone parcels that have been dedicated as City parkland. REVIEW/ANALYSIS: Parcels Proposed to be Rezoned. The following PID#s are proposed to be rezoned: PID# Development/Description 33.029.21.11.0005 Inwood 13.029.21.41.0055 Easton Village 13.029.21.31.0018 Parcel north of Reid Park 13.029.21.42.0026 Parcel east of Reid Park 13.029.21.43.0013 Parcel east of Reid Park 01.029.21.13.0004 Sanctuary 34.029.21.31.0085 Savona 34.029.21.42.0096 Savona 12.029.21.33.0052 Village Preserve/Wildflower Park 12.029.21.34.0053 Village Preserve Wildflower Park 13.029.21.23.0029 Lions Park (Parcel with Arts Building Note: The outlot that will be dedicated for parkland for the Boulder Ponds development has not yet been platted and therefore was not included on this list. City Council Item # Meeting date: 11/7/2017 Page 2 Consistency with the Comprehensive Plan. The Comprehensive Plan’s Land Use Plan does not guide these specific area for Public/Park. The Comprehensive Park and Recreation Plan, however, show areas for Neighborhood Parks, and these parcels are located within these areas. Planning Commission Review. The Planning Commission reviewed the proposed Zoning Map Amendments at its August 28, 2017 meeting. One person spoke at the public hearing asking for clarification if the rezoning would affect maintenance of City parks, and it was clarified that this will have nothing to do with maintenance; the rezoning is a housekeeping item to align zoning of these new parks with the zoning of already-established parks within the City. Staff received a number of similar questions prior to the public hearing. The Planning Commission voted 6-0 to recommend approval of the proposed rezoning. FISCAL IMPACT: None. OPTIONS: The Council may: 1) Adopt Ord. 08-190 as presented. 2) Amend Ord. 08-190 and adopt Ord. 08-190 as amended. 3) Do not adopt Ord. 08-190. RECOMMENDATION: Staff and the Planning Commission recommend the Council adopt Ord. 08- as presented, approving a Zoning Map Amendment that rezones PID#s 13.029.21.23.0029, 12.029.21.33.0052, 12.029.21.34.0053, 34.029.21.31.0085, 34.029.21.42.0096, 01.029.21.13.0004, 13.029.21.41.0055, 33.029.21.11.0005 to PF – Public and Quasi-Public Open Space. “Move to adopt Ord. 08-190 approving a Zoning Map Amendment that rezones PID#s 13.029.21.23.0029, 12.029.21.33.0052, 12.029.21.34.0053, 34.029.21.31.0085, 34.029.21.42.0096, 01.029.21.13.0004, 13.029.21.41.0055, 33.029.21.11.0005 to PF – Public and Quasi-Public Open Space.” ATTACHMENTS: • Ord. 08-190 • Zoning Map Exhibit City Council Item # Meeting date: 11/7/2017 Page 2 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 08-190 AN ORDINANCE TO AMEND THE LAKE ELMO CITY CODE BY AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF LAKE ELMO The City Council of the City of Lake Elmo ordains that Lake Elmo City Code, Section 154.032 Zoning District Map, of the Municipal Code, shall be amended by adding Ordinance No. 08-190, as follows: Section 1: Zoning Map Amendment. The following property, PID# 33.029.029.21.11.0005 is hereby rezoned from LDR-PUD – Urban Low Density Residential-Planned Unit Development to PF- Public and Quasi-Public Open Space: Outlot L, Inwood Section 2: Zoning Map Amendment. The following property, PID# 13.029.21.41.0055 is hereby rezoned from LDR – Urban Low Density Residential to PF- Public and Quasi-Public Open Space: Outlot D, Easton Village Section 3: Zoning Map Amendment. The following property, PID# 01.029.21.13.0004 is hereby rezoned from RR – Rural Residential to PF- Public and Quasi-Public Open Space: Outlot D, St. Croix’s Sanctuary Section 4: Zoning Map Amendment. The following property, PID# 34.029.21.31.0085 is hereby rezoned from LDR – Urban Low Density Residential to PF- Public and Quasi-Public Open Space: Outlot D, Savona 4th Addition Section 5: Zoning Map Amendment. The following property, PID# 34.029.21.42.0096 is hereby rezoned from LDR – Urban Low Density Residential to PF- Public and Quasi-Public Open Space: Outlot A, Savona 3rd Addition Section 6: Zoning Map Amendment. The following property, PID# 12.029.21.33.0052 is hereby rezoned from LDR – Urban Low Density Residential to PF- Public and Quasi-Public Open Space: Outlot E, Village Preserve Section 7: Zoning Map Amendment. The following property, PID# 12.029.21.34.0053 is hereby rezoned from MDR-PUD – Urban Medium Density – Planned Unit Development to PF- Public and Quasi-Public Open Space: Outlot K, Wildflower at Lake Elmo Section 8: Zoning Map Amendment. The following property, PID# 13.029.21.23.0029 is hereby rezoned from RS - Rural Single Family PF- Public and Quasi-Public Open Space: Lots 1 to 4, Colverdale Addition Section 9: The City Council of the City of Lake Elmo also hereby ordains that the Zoning Administrator shall make the applicable changes to the official zoning map of the City of Lake Elmo. Section 10: Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. This Ordinance No. 08-190 was adopted on this ___ day of ___ 2017, by a vote of __ Ayes and __ Nays. _____________________________ Mike Pearson, Mayor ATTEST: ___________________________ Julie Johnson, City Clerk STAFF REPORT DATE: November 7, 2017 CONSENT #14 AGENDA ITEM: Approve Massage Therapy License Renewals TO: Mayor and City Council SUBMITTED BY: Julie Johnson, City Clerk BACKGROUND: The City of Lake Elmo instituted a city license structure in December of 2012 in order to better regulate the practice of therapeutic massage in Lake Elmo. Licenses are subject to renewal each year. ISSUE BEFORE COUNCIL: Should Council approve the requested license renewals? PROPOSAL: The City has received a Massage Therapy License Renewal Form from Renew & Recover Massage Therapy and Body & Soul Massage Therapy. The appropriate fees have been paid and all required documentation has been provided. FISCAL IMPACT: Renewal fee for each license in the amount of $50 has been received. OPTIONS: 1) Approve license renewals 2) Deny license renewals RECOMMENDATION: If removed from Consent Agenda: Motion to approve massage therapy license renewals for Renew & Recover Massage Therapy and Body & Soul Massage Therapy. MAYOR AND COUNCIL COMMUNICATION DATE: 11/7/2017 CONSENT ITEM # 15 AGENDA ITEM: Authorization to Advertise and Hire Part-Time Warming House Attendants SUBMITTED BY: Rob Weldon, Public Works Director REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: Each year during the winter months the Public Works Department hires part-time staff to operate and supervise the warming house and ice rink at Lions Park. Historically the warming house is staffed and operated 45 hours each week by part-time staff. These positions will begin as soon as weather permits and end as temperatures increase and conditions to keep a solid ice surface are no longer favorable. ISSUE BEFORE COUNCIL: Should the City Council authorize posting and hiring of up to three (3) part-time employees to staff the Lions Park Warming House during the ice skating season? PROPOSAL DETAILS/ANALYSIS: Through the proposed advertising and hiring of part-time warming house attendants the city assures adequate staffing and services provided to ice rink and warming house users. Utilization of multiple employees allows the warming house to be open for more hours without the need to pay overtime while offering a flexible schedule over nights, weekends and holidays. FISCAL IMPACT: Funds for these positions are included in both 2017 & 2018 General Budgets. Hourly pay range would be $10-11, depending on experience. These positions are not eligible for benefits. OPTIONS: • Authorize advertising and hiring of up to three (3) part time Warming House Attendants. • Do not authorize advertisement and hiring of three (3) part time Warming House Attendants. • Table for further discussion. RECOMMENDATION: If removed from the consent agenda: “Motion to advertise and hire up to three (3) part time Warming House Attendants for the 2017-2018 winter season.”