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11-20-18 Full Meeting Packet
NOTICE OF MEETING City Council Meeting Tuesday, November 20, 2018 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. Public Comments/Inquires D. Presentations E. Consent Agenda 1. Approve Payment of Disbursements and Payroll 2. Accept Fire Department October 2018 Report 3. Accept Public Works October 2018 Report 4. Approve Special Assessment Policy Amendments – Resolution 2018-130 5. Appointments to Joint Airport Zoning Board 6. Approve Winter 2018 Newsletter 7. Approve 2018 Street Improvements – Payment Request No. 4. 8. Approve Old Village Ph4 Street & Utility Improvements – Pay Request No. 4. 9. Approve Development Security Reductions for Hammes 1st and 2nd Additions 10. Approve Letter of Credit Reduction for Village Preserve 11. Approve Massage Therapy License Renewal 12. Approve Liquor License Renewals 13. Approve 2018 Audit Contract F. Regular Agenda 14. 2019 Streets – Improvement Hearing; Authorize Plans and Specifications – Resolution 2018-131 15. Redemption of the Outstanding G.O. Refunding Bonds, Series 2009A – Resolution 2018-132 16. 2019 LMCIT Renewal 17. Snow Removal from Sidewalks – Ordinance 08-216 18. Chapter 32 of the City Code: Parks Commission – Ordinance 08-217 G. Council Reports H. Staff Reports and Announcements I. Adjourn Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner While Preserving the City’s Open Space Character STAFF REPORT -- page 1 -- DATE: November 20, 2018 CONSENT TO: Mayor and City Council FROM: Amy La Belle, Accountant AGENDA ITEM: Payments & Disbursements 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: Claim # Amount Description ACH $ 89,436.98 Payroll 11/08/18 48123 – 48193 $ 1,112,405.50 Accounts Payable 11/20/18 TOTAL $ 1,201,842.48 RECOMMENDATION: If removed from the consent agenda, the recommended motion is as follows: “Motion to approve the aforementioned disbursements in the amount of $ 1,201,842.48”. ATTACHMENTS: 1. Accounts Payable – proof list(s) STAFF REPORT DATE: November 20, 2018 CONSENT ITEM #: 4 TO: City Council FROM: Greg Malmquist, Fire Chief AGENDA ITEM: Month End Fire Department Update for October 2018 REVIEWED BY: Kristina Handt, City Administrator ISSUE BEFORE COUNCIL: Review month end activity update from fire department. Advise on any additional information requested. PROPOSAL DETAILS/ANALYSIS: We had 33 calls in September: 2 Fire Alarms 1 CO Alarm 1 Traffic Control (assistance requested by Law Enforcement) 2 Cancelled en route 18 Medicals 6 Car accidents with injuries 1 Gas Leak 1 Electrical / Wiring Problem 1 Water Rescue 33 Total A Command vehicle did not respond on 6 calls for a response rate of 82%. Our average response time was 7.1 minutes from alarm to arrival. 26 calls had 3 or less responders minus the Duty Officer with 8 calls having only 1 personnel on the first due apparatus. 10 calls this month had only shift personnel for responders. Drills for the Month: #1 - CEU – Ice and Cold Water Rescue #2 - Hoseline Advancement #3 - Annual Ability Test Points of Interest: - 1 new PT Fire Fighter started and is now in the rotation. - 2 new PT Fire Fighters are moving through the process for hiring. - 1 POC recruit is in the process of joining. - Staffing continues to be an issue on the POC side but it looks like all PT positions may be filled within the next month barring any unforeseen circumstances. - Both Chiefs attending the MSCFA Conference in Saint Paul. - Several personnel assisted Bayport Fire with a house burn activity. - AFG Grant application was completed requesting funds for SCBA replacements next year. Results of the request are pending. - PT personnel have begun a new training program during shifts where a variety of practical drills are conducted. All drills are timed and help to ensure the most efficient response possible during the real event. - Finalized details for hydrant labeling program with Public Works and will be moving forward with labeling. Part Timer Accomplishments: - Groundskeeping and landscaping at both stations. - Cleaning and general maintenance at both station. - Practical drills as assigned during shifts. - Hosted Lake Elmo Elementary students for Fire Prevention week. - Vehicle repairs - several vehicles required service at Oakdale Public Works. - Assisted Ancom with radio repair of T2. Completed from last month. - Put all replacement helmets in service for the entire department. - Vehicle and equipment inspections. - Assisted with Burn Permit applications. - Attended Fire Prevention event at local Day Care. - Installed new Mailbox at station. - Assisted FireCat with hose testing for entire department. - Replaced all wet hose with dry hose on all apparatus from hose testing. MAYOR AND COUNCIL COMMUNICATION DATE: 11/20/2018 CONSENT ITEM #: 5 AGENDA ITEM: Public Works Director Report SUBMITTED BY: Rob Weldon, Public Works Director REVIEWED BY: Kristina Handt, City Administrator ISSUE BEFORE COUNCIL: City Council is asked to review and accept, as part of Consent Agenda, a brief description of activities that have taken place in the Public Works Department in the month of October 2018. PROPOSAL DETAILS/ANALYSIS: • Sewer trace wire mtg with Focus Eng and Building Dept • Water Feasibility mtg. • Inwood Tower Punchlist inspection • Water Rate Discussion mtg. w/ Oakdale • Hunter Crossing Irrigation Inspection • Well # 1 Advisory Study • Fire Hydrant repair training with American Flow Control • Staff attended MNDot Fall Expo/Training • Wildflower walkthrough inspection • Mike Coleman Class C water license • Royal Golf walkthrough inspection • Lake Elmo Ave PRV pressure decrease • Plumbing repairs in Water Tower #2 • Plows on trucks • Street Sign Mngmt. Class – Gustafson, Wier, Effinger • Pickups serviced • Zip line and curb installation at Savona Park • Footings poured, walls set for salt shed • Savona warranty inspection • Pothole patching • Prep for salt shed paving RECOMMENDATION: Base on the activities listed above, City Council is respectfully asked to accept the October 2018 Public Works Report. STAFF REPORT DATE: November 20, 2018 REGUALR ITEM #4 – Consent MOTION TO: Honorable Mayor and City Councilmembers FROM: Sue Iverson – Finance Director AGENDA ITEM: Special Assessment Policy Amendments REVIEWED BY: Kristina Handt – City Administrator BACKGROUND: The Special Assessment Policy was last updated on October 4, 2016. As part of the 2018 Finance Committee Work Plan, the Finance Committee was to review the Special Assessment Policy. The Finance Committee reviewed this at its October 30, 2018 meeting. ISSUE BEFORE THE CITY COUNTL: Should the City Council approve changes to the Special Assessment Policy? DISCUSSION: Staff and the Finance Committee has reviewed the attached policy and proposes the following changes: •Section V, Item E. – change the interest rate to read “one percent” as it refers to the typed number 1 but says two percent. This is consistent with what the City Council is assessing. •Section VIII, first paragraph – change “10-year period” to “15-year period” as this is the practice being followed by the City Council. •Section VIII, Item F, first paragraph – change “10-year period” to “15-year period” to be consistent with the policy as reference above. FISCAL IMPACT: Regularly analyzing, discussing and updating policies and procedures helps to ensure sound financial management. Further, review helps to ensure the policies and procedures are in congruence with the goals of the City. OPTIONS: 1) Approve the attached Special Assessment Policy and adopt Resolution 2018-130. 2)Amend and then approve the attached Special Assessment Policy and adopt Resolution 2018- 130. 3)Do not approve the attached Special Assessment Policy. RECOMMENDATION: If removed from consent agenda: Motion to adopt Resolution 2018-130, a resolution adopting revisions to the City of Lake Elmo Special Assessment Policies and Procedures for Public Improvements. ATTACHMENTS: 1) Redlined copy of the Special Assessment Policy CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2018-130 A RESOLUTION ADOPTING REVISIONS TO THE CITY OF LAKE ELMO SPECIAL ASSESSMENT POLICIES AND PROCEDURES FOR PUBLIC IMPROVEMENTS WHEREAS, the City of Lake Elmo undertakes public improvement projects from time to time, and may desire to defray all or a portion of the cost of the improvements against the benefiting properties; and WHEREAS, on November 10, 2010, the City adopted the Special Assessment Policies and Procedures for Public Improvements manual, to serve as the general guide for a systematic assessment process for public improvements in Lake Elmo; and WHEREAS, on June 17, 2014, the City Council readopted and perfected in Ordinance 08-108 to clarify how properties would be charged lateral benefit fees for water improvements; and WHEREAS, the Finance Commission is recommending amendments to the policy; and NOW, THEREFORE, BE IT RESOLVED, 1. The Special Assessment Policies and Procedures for Public Improvements manual, amended November 20, 2018, a copy of which is attached hereto and made a part hereof, is hereby approved and adopted. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE TWENTIETH DAY OF NOVEMBER 2018. CITYOF LAKE ELMO By: ______________________________ Mike Pearson Mayor (Seal) ATTEST: __________________________________ Julie Johnson City Clerk CITY OF LAKE ELMO SPECIAL ASSESSMENT POLICIES AND PROCEDURES FOR PUBLIC IMPROVEMENTS Amended by Resolution No. 2018-XXX on: November 20, 2018 Amended by Resolution No. 2016-83 on: October 4, 2016 Amended by Resolution No. 2014-45 on: June 17, 2014 Amended by Resolution No. 2013-109 on: December 17, 2013 Adopted by Resolution No. 2010-063 on: November 16, 2010 2 TABLE OF CONTENTS SECTION I: GENERAL POLICY STATEMENT ........................................................................ 3 SECTION II: DEFINITION OF IMPROVEMENTS ELIGIBLE FOR SPECIAL ASSESSMENT .. 5 SECTION III: INITIATION OF PUBLIC IMPROVEMENT PROJECTS ...................................... 7 SECTION IV: PUBLIC IMPROVEMENT PROCEDURES ......................................................... 8 SECTION V: GENERAL ASSESSMENT POLICIES ...............................................................10 SECTION VI: METHODS OF ASSESSMENT .........................................................................14 SECTION VII: POLICIES OF REASSESSMENT ....................................................................17 SECTION VIII: DETERMINATION OF ASSESSABLE COSTS ...............................................18 3 SECTION I. GENERAL POLICY STATEMENT A special assessment is a levy on a property to defray the cost of public improvements. Chapter 429 of the Minnesota Statutes grants cities the authority to use special assessments as a mechanism to finance a broad range of public improvements. The primary purpose of special assessments is to have the properties that benefit from the public improvements pay as much of the cost of the improvements as reasonable, thereby reducing a city’s reliance on general property taxes. However, Chapter 429 of the Minnesota Statutes limits the amount that may be assessed to the increase in the market value of the property being assessed as a result of the public improvement. The purpose of this Special Assessment Policy is to establish a fair and equitable manner of recovering and distributing the cost of public improvements. The procedures used by the City of Lake Elmo ("City") for levying special assessments are those specified by Minnesota Statutes § Chapter 429, which provides that "all or a part of the cost of improvements may be assessed against benefiting properties." This assessment policy is intended to serve as a general guide for a systematic assessment process in the City of Lake Elmo. Special Assessments must meet the following criteria: A. The land must have received special benefit from the improvement. B. The amount of the assessment must not exceed the special benefit. C. The assessment must be uniform in relation to the same class of property within the assessment area. It is important to recognize that the actual cost of extending an improvement past a particular parcel is not the determining factor in determining the amount to be assessed. However, in most cases the method for determining the value of the benefit received by the improvement, and therefore the amount to be assessed, shall be the cost of providing the improvement, as long as the cost does not exceed the increase in the market value of the property being assessed. The entire project shall be considered as a whole for the purpose of calculating and computing an assessment rate. In the event City staff has doubt as to whether or not the costs of the project 4 may exceed the special benefits to the property, the City Council may obtain such appraisals as may be necessary to support the proposed assessment. The City must recover the expense of installing public improvements undertaken, while ensuring that each parcel pays its fair share of the project cost in accordance with these assessment guidelines. While there is no perfect assessment policy, it is important that assessments be implemented in a reasonable, consistent and fair manner. There may be exceptions to the policy or unique circumstances or situations that may require special consideration and discretion by City staff and the City Council. 5 SECTION II. DEFINITION OF IMPROVEMENTS ELIGIBLE FOR SPECIAL ASSESSMENT This policy shall be applicable to those types of public improvements that are allowable under Minnesota Statutes §429.021. Generally the improvements include: A. Street and sidewalk improvements: Acquisition, construction, reconstruction, extension and major maintenance of any street and sidewalk and improvement of streets and sidewalks including base and subbase, pavement, gutters, curbs, and vehicle parking stripes, paver cross walks, pedestrian crossings, medians, beautification amenities, and street and sidewalk drainage systems. B. Street lighting systems. Installation, replacement, extension, and maintenance of street lights, street lighting systems, and special lighting systems. C. Parks, trails, open space areas, playgrounds, and recreational facilities. Acquisition and improvement of land, and purchase of equipment and facilities, and the construction, reconstruction, and extension of trails. D. Street trees. Planting, trimming, care, and removal. E. Potable waterworks systems. Construction, reconstruction, extension, and maintenance of water supply wells and pump houses, water treatment facilities, storage tanks, and all components of the watermain distribution system network and related appurtenances. F. Sanitary sewer systems. Acquisition, development, construction, reconstruction, extension, and maintenance of sanitary sewer conveyance and treatment systems. This may include sanitary sewers, interceptor mains, lift stations, treatment facilities and treatment systems, service connections, and other appurtenances of a sanitary sewer system. G. Storm sewer and drainage systems. Acquisition, development, construction, reconstruction, extension, and maintenance of storm water management facilities and storm sewer systems. This may include outlets, culverts, pipe systems, catch basins, 6 holding areas and ponds, infiltration basins, rain gardens, treatment plants, pumps, lift stations, service connections, and other appurtenances of a storm sewer system. H. Nuisance abatement. Includes, but is not limited to, draining and filling swamps, marshes, and ponds on public or private property. I. Dikes and other flood control works. Construction, reconstruction, extension, and maintenance. J. Retaining and area walls, including highway noise barriers. Acquisition, construction, reconstruction, improvement alteration, extension, and maintenance. K. Malls, plazas, or courtyards. Acquisition, construction, improvement, alteration, extension, operation, maintenance, and promotion of public malls, plazas, and courtyards. L. Parking lots. Acquisition or construction of parking facilities. 7 SECTION III. INITIATION OF PUBLIC IMPROVEMENT PROJECTS Public improvement projects may be initiated in the following ways: A. A public improvement project may be initiated by petition of at least 35% of the affected property owners. B. Public improvements may be initiated by the City Council when, in its judgment, such action is required. A resolution ordering any Council initiated improvements requires a 4/5th vote, rather than a simple majority. 8 SECTION IV. PUBLIC IMPROVEMENT PROCEDURES The following is the general procedure that will be followed by the City Council for all public improvement projects from initiation of such a project through certification of the assessment role to the County Auditor. The City Council reserves the right to alter the procedure on a case- by-case basis and within the context of Minnesota Statues § Chapter 429. Improvements of different kinds anywhere in the City may be included in a proceeding and conducted as one or more improvements. Thus, a single proceeding may encompass sidewalk, curb and gutter, and water and sewer mains installed anywhere in the City. A. Staff reviews petition for local improvements from property owners and submits the petition to the City Council, or the City Council passes a resolution ordering a Feasibility Report on the improvement. B. Council accepts or rejects the petition. If accepted, the Council orders the preparation of a Feasibility Report on the improvement. The Council may condition further action on the recovery of costs associated with the project and/or Feasibility Report. C. Staff prepares a Feasibility Report on the proposed improvements, or reviews the report submitted by another agency/representatives. D. Council accepts or rejects the Feasibility Report. If accepted, the Council orders a public hearing on the improvements. E. Staff publishes a hearing notice and mails notices to the affected property owners. F. Council conducts improvement hearing and adopts or rejects a resolution ordering the improvement and the preparation of plans and specifications. Bonds to finance project costs may be issued at any time after the improvements are ordered. G. Staff prepares final plans for Council approval. Council approves the plans and authorizes the advertisement of the improvements and the opening of Bids. 9 H. Staff receives bids, prepares a bid tabulation, and makes a recommendation to the City Council for Award. Council rejects the bids or awards a contract based on the bids received. I. Performance of the work under contract is completed. Staff supervises construction, prepares payments, and completes the improvement project. J. Staff prepares an assessment roll and presents it to the Council. K. Council reviews the assessment schedule and orders an assessment hearing. L. Staff publishes a hearing notice, mails the notice of hearing date and the proposed assessments to the affected property owners. M. Council conducts assessment hearing, adopts, revises, or rejects the resolution adopting the assessment roll. If adopted, Council authorizes certification of the assessment to the County Auditor. N. Staff certifies the assessments to the County Auditor. * Note: At Council's discretion, Item G may be carried out in advance of the improvement hearing. * Note: At Council's discretion, Items J-N may be carried out in advance to Council award and constructing the improvements. 10 SECTION V. GENERAL ASSESSMENT POLICIES The cost of any improvement shall be assessed upon property benefited by the improvements, based upon the benefits received. The following general principles shall be used as a basis of the City's assessment policy: A. It is the general policy of the City of Lake Elmo to require future development in accordance with the City Comprehensive Plan and for new areas of development in an orderly manner, typically contiguous to existing development areas. It is also the general policy of the City of Lake Elmo to require all new development areas to provide for adequate public infrastructure at the Developer's sole expense, and in accordance with the City Comprehensive Plans and Design Standards. B. The use of special assessments will typically be employed by the City to finance needed public improvements (e.g. parks and trails, sidewalks, water, sewer, and street improvements) in certain areas that have previously been developed without all needed infrastructure, or to repair and/or replace aging infrastructure. C. The "project cost" of an improvement includes the costs of all necessary construction work required to accomplish the improvement, plus engineering, legal, administrative, financing, and other contingent costs, including acquisition of right-of-way, easements and other property. The financing charges include all costs of financing the project. These costs include, but are not limited to, financial consultant's fees, bond attorney's fees, and capitalized interest. When the project is started and funds are expended prior to receiving the proceeds from a bond sale, the project may be charged interest on the funds expended from the date of expenditure to the date the bond proceeds are received. The interest rate charged will be the average interest rate earned by the City's investments during the six months preceding the receipt of the bond proceeds. The interest charged to the project shall be included as financing charges. D. The "assessable cost" of an improvement is equal to the "project cost" minus the "City cost". E. The City of Lake Elmo will charge interest on Special Assessments at a rate specified in the resolution. If bonds were sold to finance the improvement project, the interest rate 11 shall be two one percent (1%) more than the average coupon interest rate of the bonds, rounded to the nearest quarter of a percent. If no bonds were sold, the interest rate shall be set at the rate allowed by State law. F. Pre-payment. The City will certify each year's collection (principal and interest) to the County Auditor by November 30th. The owner of any property that is assessed may pay their assessment in full, interest free for a period of 30 days after the adoption of the assessment. After such period interest shall be computed from the date specified in the assessment resolution. The owner of any property that is assessed may also, at any time prior to certification of the assessment or the first installment thereof to the county auditor, pay the whole of the assessment on such property to the City, with interest accrued to the date of payment. In any subsequent year, the owner may at any time prior to November 15, prepay to the City, the whole assessment remaining due with interest accrued to December 31 of the year in which said prepayment is being made. G. Where an improvement is designed for service of an area beyond that of direct benefit, increased project costs due to such provisions for future service extensions may be paid for by the City. The City will levy assessments to cover this cost when a new improvement is installed as an extension of the existing improvement. As an alternative, the City may assess these costs to the area of future benefit immediately. H. Where the project cost of an improvement is not entirely attributable to the need for service to the area served by said improvement, or where unusual conditions beyond the control of the owners of the property in the area served by the improvement would result in an inequitable distribution of special assessments, the City, through the use of other funds, may pay such "City cost" which, in the opinion of the City Council, represents the excess cost not directly attributable to the area served. I. If financial assistance is received by the City from the Federal Government, from the State of Minnesota, the County, or from any other source to defray a portion of the costs of a given improvement, such aid will be used first to reduce the "City cost" of the improvement. If the financial assistance received is greater than the normal "City cost", the remainder of the aid will be applied according to the terms of the assistance program or at the Council’s discretion. 12 J. City-owned properties, including municipal building sites, parks and playgrounds, but not including public streets and alleys, shall be regarded as being assessable on the same basis as if such property was privately-owned. K. Improvements specifically designed for or shown to be of direct benefit to one or more properties may be constructed by the City. The costs for these improvements will be assessed directly to such properties, and not included in the assessments for the remainder of the project. An example of this would be utility service lines running from the main lines to the property. L. Benefit Appraisals: In the event that City staff has doubt as to whether or not the proposed assessments exceed the special benefits to the property in question (increased property value as defined by State law), the City Council may order benefit appraisals as deemed necessary to support the proposed assessments. M. A property owner may elect to offset Special Assessments against condemnation awards by executing a Net Assessment Agreement with the City Council. N. Assessment Deferral Procedure for Green Acres Parcels: In cases where improvement projects are determined to benefit properties that have been certified to qualify for Green Acres exemption, the City will determine that portion of the project cost that benefits those properties, and finance that portion of the project cost as a system cost. During the period of deferral, interest shall be applied annually to the unpaid principal balance of the deferred amount at the rate established on the original special assessment, or as adopted by resolution of the City Council at the time the original assessment is adopted. Once the benefiting properties no longer qualify for Green Acres status, the City may recover the unpaid principal balance plus interest either through assessments or connection charges. O. Assessment Deferral for Hardships: The City Council will consider deferment for the payment of special assessments on any homestead property, owned by a person 65 years of age or older, or retired by virtue of permanent and total disability. A hardship may be deemed to exist when the annual principal installment of all assessments levied against the property exceeds two percent (2%) of the adjusted gross income of the applicant as evidenced by the applicant’s most recent federal income tax return, and 13 total assets (excluding the homestead property) do not exceed six times the adjusted gross income. The City Council may also determine, on a case by case basis, the existence of a hardship on the basis of exceptional and unusual circumstances not covered by these standards and guidelines, if done in a non-discriminatory manner and without giving the applicant an unreasonable preference or advantage over other property owners. During the period of deferral, interest shall be applied annually to the unpaid principal balance at the rate established on the original special assessment, or as adopted by resolution of the City Council at the time the original assessment is adopted. The deferment shall terminate and all principle and interest becomes due and payable upon the occurrence of any of the following events: (1) The death of the owner when there is no spouse whom is eligible for deferment, (2) The sale, transfer or subdivision of the property or any part thereof, (3) The property should lose its homestead status, (4) The City Council should determine that the hardship no longer exists. A review of the hardship will be conducted every three to five years. 14 SECTION VI. METHODS OF ASSESSMENT A. GENERAL POLICY STATEMENT The City of Lake Elmo has adopted the following three methods for assessment of public improvements: fixed cost unit, adjusted front footage, and by area method. For any particular project one of these methods will more adequately reflect the true benefits received in the assessment area than the other methods. The City Engineer, in his Feasibility Study to the Council, will recommend one or a combination of these methods for each project, based upon past practices and the method that would best reflect the benefit received for the area to be assessed. The City Council will select the preferred method of calculating the assessments at the time the project is ordered. The general rule is to assess platted residential lots using the “unit” assessment basis; however, where platted residential lots do not reflect a general similar size and shape, consideration will be given to an adjusted front footage basis. Commercial, institutional, and industrial lots will be assessed on an adjusted front footage basis; however, consideration will be given to a "unit" assessment if the special benefit to the property in the district is essentially the same. The methods of assessment outlined within this policy are not intended to be an exhaustive list of acceptable approaches. The Council may adopt alternative approaches as they deem necessary to fairly and equitably allocate assessments for unique situations. B. ASSESSMENT METHODS The following methods of assessment, as described and defined below, are hereby established as the official methods of assessment in the City of Lake Elmo: 1. Fixed Cost "Unit" Method of Assessment When it has been determined to assess by the "unit" method, all lots within the benefited area shall be assessed equally for the improvements. The "fixed cost per unit" shall be defined as a quotient of the "assessable cost" divided by the total assessable lots or parcels benefiting from the improvement. 15 For the purpose of determining the "units" or "parcels", all parcels, including governmental agencies, shall be included in such calculations. When large lots can be subdivided into more than one lot, the number of assessable lots attributed to that parcel will be determined from the number of potential future lots that could be obtained using current subdivision regulations. For multi-family, commercial, industrial and institutional properties, the number of fixed units assigned to the property may be determined by an equivalent “residential” factor representing the properties use compared to a single family residential home (e.g. SAC units,WAC units, or standard traffic generation units). 2. "Adjusted Front Footage" Method of Assessment When it has been determined to assess by the "Adjusted Front Footage" method, the "cost per adjusted front foot", or assessment rate, shall be defined as the quotient of the "assessable cost" divided by the total assessable frontage benefiting from the improvement. The assessment for each parcel is then obtained by multiplying the assessment rate times the adjusted front footage for each property. For the purpose of determining the "assessable frontage", all properties, including governmental agencies, shall have their frontages included in such calculation. The actual physical dimensions of a parcel abutting an improvement (i.e., street, sewer, water, etc.) shall NOT be construed as the frontage utilized to calculate the assessment for a particular parcel. Rather, an "adjusted front footage" will be determined. In the Adjustment Front Footage method, odd shaped lots are adjusted to an average footage that would be the equivalent to the frontage of a rectangular shaped lot of the same area and depth. The purpose of this method is to equalize assessment calculations for lots of similar size. 3. "Area" Method of Assessment When it has been determined to assess by the "area" method, the area shall be defined as the number of square feet or acres within the boundaries of the appropriate property lines of the areas benefiting from the project. The assessment rate (i.e. cost per square foot) shall be calculated by dividing the 16 total assessable cost by the total assessable area. The assessment for each parcel is then obtained by multiplying the assessment rate times the benefitting area of the parcel. On large lots, the City Engineer may determine that only a portion of the lot receives the benefit and may select a lot depth for the calculations equal to the benefit received. For the purposes of defining assessable areas, all properties included in the benefited area, including other governmental areas, churches, etc. shall be included in the assessable areas. The following items may not be included in area calculations: public right-of-ways, natural waterways, swamps and lakes or other wetlands designated by the Mn/DNR. The City Engineer will make the recommendation on the benefited area in the Feasibility Report. 17 SECTION VII. POLICIES OF REASSESSMENT The City of Lake Elmo, in constructing or reconstructing any public improvement, shall design such improvement to last for a defined period. The life expectancy or service life shall be as stated in the policy statement of this section, or if different, shall be as stated in the Resolution ordering the improvement and preparation of plans. When such project needs renewing or replacement prematurely, the amount to be assessed against the property owner shall be limited to an amount determined by dividing the actual life of the original improvement by the expected service life of the original improvement. A. POLICY STATEMENT The following are hereby established as the "life expectancies" or "service lives" of public improvements unless otherwise stated in the Resolution ordering improvement and preparation of plans, in which case, the life set forth in the Resolution shall govern. 1. Sidewalks and Trails - 15 years 2. Street Improvements, including surfacing and curb and gutter - 20 years 3. Street Lighting - 20 years 4. Water Mains and Appurtenances - 40 years 5. Sanitary Sewers and Appurtenances - 40 years 6. Storm Sewers and Appurtenances - 40 years 7. Mechanical and Electrical Systems, Pumps and Controls - 15 years 18 SECTION VIII. DETERMINATION OF ASSESSABLE COSTS A. STREET IMPROVEMENTS Street Improvement assessments, including paving, curb and gutter, and related street drainage systems are normally levied over a 10-year15-year period. Single family residential properties will be assessed if the property has direct access to the improvement. High Density Residential, Commercial, and Industrial Properties will be assessed if the property abuts the improvement. Large lots and undeveloped properties may be assessed additional units in accordance with Section VI. B. Corner Lots: A corner property having direct access to two public streets shall be assessed 50% of the per unit basis when each public street is improved. When one street is a collector street, the property shall be assessed 70% of the per unit basis for the higher class street. 1. New Street Improvement Construction and Paving All new street improvements will be assessed 100% to the benefited properties when the improvement includes a “New” street. For new storm drainage systems, adding curb and gutter, and paving gravel roadways, the “New” improvement will be assessed 100%, while the base, subbase and other in place elements will be assessed as defined under Street Reconstructions. 2. Local Street Improvements Local street improvements and paving shall be assessed based on the minimum City design standard detail and pavement section and will normally be assessed by the unit method; however, other methods may be considered. Oversizing costs which are incurred in excess of the above may be paid by: (1) State Aid Funds, (2) larger assessment rates to properties, (3) general obligation bonds, or (4) any other method or combination of methods authorized by the City Council 3. Collector and Arterial Street Improvements In general, collector and arterial street improvements are considered a community wide benefit and will be paid for through various City funds such as 19 municipal state aid funds. Residential properties with private access to collector and arterial streets will be assessed for access benefit, equivalent to the cost for a local City standard street determined by removing street oversize costs and additional costs associated with higher traffic volumes. All street-oversizing costs associated with collector streets will not be assessed directly to residential properties. Oversizing costs may be assessed to a broader property benefitting area with the area to be determined by the City and approved by the City Council. 4. Street Reconstruction Improvements All residential street reconstructions shall be 30% assessed to the benefitting properties and will normally be assessed by the unit method. Street reconstruction improvements in Commercial, Business District, Institutional and Industrial areas shall be assessed 100% of the total project costs or determined on a project-by-project basis. 5. Street Maintenance Overlays and Seal Coating Bituminous overlay projects, bituminous seal coats, patching, crack sealing, fog sealing, and filling potholes will not be assessed when completed as part of the street system’s “life cycle” maintenance activities. B. SIDEWALKS, TRAILS, AND BIKEWAYS Assessments for sidewalk, trails and bikeway improvements are levied over a 10-year period. The City may install sidewalks, trails or bikeway improvements in accordance with the City Comprehensive Plan for the community, or for City Council directed purposes, in which case the City may not assess the improvements. At City Council discretion, sidewalk, trail and bikeway improvements may be fully or partially funded as part of a street construction/reconstruction assessment, through park dedication fees, using Municipal State Aid funding, Capital Infrastructure funding, or general tax levy funds. 20 1. New Construction New sidewalks, trails, and bikeway improvements will be 100% assessed to the benefitting properties based upon the adjusted front footage. 2. Reconstruction Replacement sidewalks, trails and bikeway improvements will be assessed 30% to the abutting residential properties and assessed 100% to the abutting commercial, industrial, and institutional properties. C. LANDSCAPING / STREET BOULEVARD TREES Landscaping and street boulevard tree improvements may be assessed as determined by the Council for each specific project. D. STREET LIGHT IMPROVEMENTS Street Light improvements may be assessed as determined by the Council for each specific project. E. TRANSPORTATION IMPROVEMENTS All costs associated with traffic and transportation related improvements, such as widening of a roadway for turn lanes, additional driving lanes, on-street parking, traffic calming, and traffic signalization may be assessed 100% to the benefiting properties. F. STORM SEWER AND DRAINAGE FACILITY IMPROVEMENTS Storm sewer and drainage facility improvements shall be considered and incorporated as part of street improvement projects and assessed as part of the project and levied over a 10-year15-year period. Storm sewer and drainage facility improvements completed as independent projects will normally be assessed by the area method taking into account each parcels land use and rate of runoff as determined by the City Engineer. 1. New Storm Sewer and Drainage Facility Improvements New storm sewer and drainage facility improvements installed in conjunction with new street construction where no storm sewer previously existed will be 21 assessed 100% and be included in the street assessment to benefiting properties. If the facilities are oversized to accommodate drainage from areas outside the street improvement assessment area, the additional costs may be assessed to the properties in the contributing area. Their assessment will be determined by the area method based on the contributing area of the parcel(s) taking into account the land use and rate of runoff. 2. Replacement and Major Maintenance of Storm Sewer Improvements Any replacement costs or reconstruction of existing storm sewers and drainage facilities in conjunction with street reconstruction projects will be assessed 30% and be included in the street assessment to benefiting properties. If the facilities are oversized to accommodate drainage from areas outside the street improvement assessment area, the additional costs may be assessed to the properties in the contributing area. Their assessment will be determined by the area method based on the contributing area of the parcel(s) taking into account the land use and rate of runoff. G. SANITARY SEWER IMPROVEMENTS Assessments for sanitary sewer improvements shall be based upon the cost of construction of 8-inch sewer mains. Oversizing costs due to larger mains and larger appurtenances and/or extra depths required to service future development, and major trunk sewers or interceptors will not be assessed and will be “City system costs” funded out of the Sanitary Sewer Reserve Fund. Normally, sanitary sewers will be assessed using an adjusted per lot method; with the adjustment made using the Metropolitan Council calculation to establish a residential equivalent unit (REC). Normally, sanitary sewer system assessments are levied over a 20-year period, or as otherwise set by the City Council. Street improvements and major street maintenance that are completed as part of utility replacement projects and has effectively accelerated the replacement of the street before it’s expected useful life, shall be funded through the Sanitary Sewer Reserve Fund in proportion to the remaining design life of the street. 22 1. Interceptor Sewer System The Metropolitan Council Environmental Services (MCES) is responsible for the construction of the regional interceptor sewer system and for the wastewater treatment facility to treat the sewage generated in the City of Lake Elmo. The MCES has established a Sewer Availability Charge (SAC) that is collected from each unit connected to the sanitary sewer system. The current charge per residential equivalent unit (REC) is collected, in full, by the City at the time of connection or the issuance of the building permit as part of the City’s Sewer Availability Charge. The City collects this charge and passes the required portion of this fee on to the MCES. 2. Trunk Sanitary Sewer System The Trunk Sanitary Sewer System is constructed to serve the entire community or a larger service area and therefore is deemed to be of community-wide benefit. Trunk sanitary sewers, lift stations, and other trunk sewer system facilities shall be financed by a City Sewer Availability Charge (SAC) to be paid at the time of connection to the City system with a City trunk system component and a pass through component to the MCES. The City portion of the Sewer Availability Charge (SAC) and City Connection fees on units existing at the time of construction may be paid in normally not more than 20 annual installments of principal plus interest on the unpaid principal balance at an interest rate set by the City Council. The Sewer Availability Charge (SAC) on units built after the sewer construction should be paid in full at the time the building permit is issued. 3. Lateral Sanitary Sewer System The costs for lateral sanitary sewers shall be fully assessed 100% to the benefiting properties. Commercial, institutional, industrial and multiple land uses and undeveloped lands are converted into equivalent residential units for assessment purposes. Any building unit which is served directly by an interceptor or trunk sewer and therefore requires no lateral sewer, is levied a lateral benefit assessment which is equal to the Sewer Lateral Benefit Charge as set in the latest adopted City Fee Schedule. 23 The replacement of existing sanitary sewer mains and service lines within the right-of-way will not be assessed, but rather financed from the Sanitary Sewer Reserve Fund or other funding sources identified by the City Council. Each property shall pay for the replacement of the service line on their private property, from the right-of-way to the building/home. H. WATERMAIN IMPROVEMENTS Assessments for new water main improvements shall be based upon the cost of construction of 8-inch water mains. Oversizing costs due to larger mains and larger appurtenances will not be assessed and will be “City system costs” funded out of the Water Reserve Fund. Normally, water mains will be assessed using an adjusted per lot method; with the adjustment made using the Metropolitan Council sewer calculation to establish a residential equivalent unit (REC). Normally, water system assessments are levied over a 20-year period, or as otherwise set by the City Council. Street improvements and major street maintenance that is completed as part of utility replacement projects and has effectively accelerated the replacement of the street before it’s expected useful life, shall be funded through the Water Reserve Fund in proportion to the remaining design life of the street. 1. Trunk Water Mains, Supply, Storage, and Treatment Facilities The Trunk Water System Facilities are constructed to serve the entire community or a larger service area and therefore deemed to be of community- wide benefit. Trunk water mains, pump stations, wells, storage tanks, and treatment facilities shall be financed by a Water Availability Charge (WAC) to be paid at the time of connection to the City system. Water Availability Charge (WAC) and City Connection fees on units existing at the time of construction may be paid in normally not more than 20 annual installments of principal plus interest on the unpaid principal balance at an interest rate set by the City Council. Water Availability Charge (WAC) on units built after the water main construction should be paid in full at the time the building permit is issued. 24 2. Lateral Water Mains The costs for lateral water mains shall be fully assessed 100% to the benefiting properties. Commercial, institutional, industrial and multiple land uses, and undeveloped lands are converted into equivalent residential units for assessment purposes. Any building unit in a municipal urban service area (those areas guided for municipal sanitary sewer service) which is served directly by a trunk water main and therefore requires no lateral water main, is levied a lateral benefit assessment which is equal to 1.0 times the Watermain Lateral Benefit Charge as set in the latest adopted City Fee Schedule. The building unit must connect to the municipal water system within two years of the service being made available. Any building unit outside of a municipal urban service area (those areas not guided for municipal sanitary sewer service) which is served directly by a trunk water main and therefore requires no lateral water main, is levied a lateral benefit assessment which is equal to 0.5 times the Watermain Lateral Benefit Charge as set in the latest adopted City Fee Schedule and a service stub shall be installed for the building unit. An additional 0.5 times the Watermain Lateral Benefit Charge shall be charged with the permit at the time of connection to the water system if the property chooses to make a connection. The later charge shall be made using the Watermain Lateral Benefit Charge as set in the latest adopted City Fee Schedule at the time of the connection. The replacement of existing water mains and service lines within the right-of -way will not be assessed, but rather financed from the Water Reserve Fund or other funding sources identified by the City Council. Each property shall pay for the replacement of the service line on their private property, from the right-of-way to the building/home. STAFF REPORT DATE: November 20, 2018 CONSENT AGENDA ITEM: Appointments to Joint Airport Zoning Board (JAZB) SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The city has received notice from the Metropolitan Airports Commission that they will be creating a Joint Airport Zoning Board (JAZB) for the Lake Elmo Airport as provided in state statute. They are requesting two representatives from each affected community to participate in the JAZB. ISSUE BEFORE COUNCIL: Who should Council appoint to the JAZB? PROPOSAL: In talking with other communities, they are leaning towards appointing a combination of elected and staff members to the JAZB. The city also has the option not to participate in the process. Staff would recommend against that given the proximity of the airport to the city. I would recommend Council member Bloyer and Planning Director Roberts be appointed as the two Lake Elmo representatives. FISCAL IMPACT: NA OPTIONS: 1) Appoint Council Member Bloyer and Director Roberts to the JAZB 2) Appoint two different individuals to the JAZB 3) Do not participate in the JAZB RECOMMENDATION: If removed from the consent agenda: “Motion to appoint Council Member Bloyer and Director Roberts to the JAZB.” ATTACHMENTS: • MAC Letter 10-26-18 STAFF REPORT DATE: November 20, 2018 CONSENT ITEM #: 6 AGENDA ITEM: Winter 2018 newsletter SUBMITTED BY: Jake Foster, Assistant City Administrator BACKGROUND: At the October 17, 2017 meeting, Council approved the printing and distribution of The Source newsletter for Fall/Winter of 2017. During that meeting, Council also approved future printings to be done on a bi- annual basis. As part of this bi-annual printing schedule, the newsletter is due to be printed and distributed again this fall/winter. Please note that images will be added for Planning Director, Ken Roberts and Public Works Operator, Mike Belde prior to the newsletter being printed and distributed. ISSUE BEFORE COUNCIL: Should the City approve and distribute a new edition of The Source for winter 2018? PROPOSAL DETAILS/ANALYSIS: Staff recommends that the attached draft is approved, and it is authorized to be printed and distributed. FISCAL IMPACT: The estimated cost of the printing, preparation, and mailing of each edition of The Source is $2,000. RECOMMENDATION: If removed from the consent agenda: “Move to approve the attached draft and to authorize the printing and distribution of The Source newsletter for the winter of 2018.” ATTACHMENTS: Draft of The Source for winter 2018 Winter 2019 City Hall - 3800 Laver ne Avenue Nor th - Lake Elmo, Minnesota 55042 (651) 747-3900 2019 Budget Update City Hall - 3800 Laver ne Avenue Nor th - Lake Elmo, Minnesota 55042 (651) 747-3900City Hall - 3880 Laverne Avenue North - Lake Elmo, MN 55042 (651) 747-3900 On September 18, 2018, the City Council adopted a 2019 Preliminary General Fund Budget of $4,189,837 which is an increase of $593,236 or 16.5%. The City’s Preliminary Tax Rate was set at 22.902% which is a 2% increase over 2018. 2019 Preliminary General Fund Budget The operating budget has increased revenues of $1,000,275 over the 2018 budget. This increase is due to the increase in the property tax levy for the General Fund, building permits as the City is still in an expan- sion phase, Cable Franchise revenue as the City builds out, and two additional leases on the water tower for cell phone antennas. The operating budget for expenditures has an overall increase of $930,275. The major changes to this are an increase in Assessing Services as we are now contracting with Washington County, Keats Avenue Acceleration Lane, Sealcoating and Crack Sealing to maintain our roads, and an additional Public Works employee. Transfers have also been added to this budget for the Vehicle Replacement Fund of $610,076 to build reserves and reduce future borrowing, and transfer to debt service funds to replace revenue due to the reduction in special assessments for Old Village Phase 3. 2019 Preliminary City Property Tax Rate The tax rate is calculated using the City’s Taxable Value on property divided by the levy. The levy is made up of the General Fund property tax levy needed to balance the budget and the City’s required debt levies on its outstanding bonds. This table below shows the impact on this to various home values in the City. ...Article continues on page 2 2 Winter 2018 Snow Plowing in Lake Elmo Winter weather is never a popular subject, especially for plow operators who are trying to keep roads clear and safe for traffic. The follow- ing are a few tips and information that will hope- fully make winter a little easier for everyone. • Do not deposit or push snow across any street (MN State Statute 160.2715) • Please keep garbage and recycling containers off the roadway. • Make sure your mailbox is at its legal height and properly secured. The city will only replace mailboxes that are physically hit by city plows. • Priority will be given to roads with higher amounts of traffic. Roads serving residential areas and cul-de-sacs will be plowed secondary. • Depending on snowfall timing, crews will begin operations between 2am and 4am. • Please leave plenty of room when following plows. These units do frequent turning and backing. Remember, “If you cannot see their mirrors, they cannot see you” Finance Staff: Sue Iverson, Finance Director siverson@lakeelmo.org 651-747-3909 Amy LaBelle, Accountant alabelle@lakeelmo.org 651-747-3916 2019 Budget Continued Public Hearing on the 2019 Budget and 2019 Final Tax Levy A public hearing is scheduled on December 4, 2018 at the Regular City Council meeting at 7:00 p.m. After the hearing the City Council will con- sider adopt the Final Budget and Tax Levy for 2019. Winter Parking Ordinance Now in Effect Winter Parking Ordinance Prohibits Parking on Lake Elmo Streets from Nov. 1 through March 31 between 2:00 AM and 7:00 AM. Public Works can't clear the roadways with cars blocking their paths! 3 Winter 2018 New City Council Members Council Member, Dale Dorschner Lisa McGinn is a retired police officer, and has been serving on the City’s Public Safety Commit- tee and the Comprehensive Plan Advisory Panel prior to being elected to the Lake Elmo City Council. Council Member, Lisa McGinn Dale Dorschner has been a Lake Elmo resident for over 20 years, and his family has roots in the area for generations. Pri- or to being elected to the Lake Elmo City Council, Dale was a meber of the City’s Planning Commission. 2018 City Council Election Results The 2018 election included local races for two City Council seats. City Council elections are nonpartisan and the candidates run for their seats at-large. Terms for these Coucnil positions are fours years begin- ning in January of 2019 and ending January 2, 2023. The candidates filed for the two seats. The election results are provided below. 4 Winter 2018 New City Staff Ken Roberts started in Lake Elmo in early November. Ken has over 25 yeasr of experi- ence working in municiple government in a plan- ning capacity. Most recently he was the planner for Chisago County. Ken Roberts, Planning Director Mike Belde, Public Works Mike Belde joined the City of Lake Elmo as a Public Works Operator in September. Prior to coming to Lake Elmo, Mike worked as a Ground Equipment Mangaer for Minneapolis Public Schools. Mike currently lives in Lake Elmo with his wife and children. The City has been participating in workgroups related the the Minnesota 3m PFC Settlement since July. Summaries of the workgroup meetings of the Government and 3M Working Group and the Citizen-Business Group are now posted on the 3M Settlement website. Also available is a presentation from the Minnesota Department of Health on the spatial extent of the PFAS contamination. Information on these workgroups, past meetings, or other details relating to the 3M PFC Settlement can be found on the settlement website at: https://3msettlement.state.mn.us/. The next workgroup meetings are scheduled for December 18 and 19. Meeting agendas will be available soon. All 3M Settlement work group meetings are open to the public, and time is reserved at each meeting for questions from attendees. 5 Winter 2018 Will Your Mailbox Survive the Winter? Below are proper installation instructions from the USPS 1) Position your mailbox 41” to 45” from the road surface to the bottom of the mailbox or point of mail entry. 2) Place your mailbox 6” to 8” back from the curb. If you do not have a raised curb, contact your local post- master for guidance. 3) Put your house or apartment number on the mailbox. 4) If your mailbox is on a different street from your house or apartment, put your full street address on the box. 5) If you are attaching the box to your house, make sure the postal carrier can reach it easily from your sidewalk, steps, or porch. Street Light Outages City Staff has recently been receiving an increased volume of calls relating to street lights that have burnt out throughout the City. These lights are the respon- sibility of Xcel Energy to maintain and replace. If you notice a street light that is no longer working, please visit: https://www.xcelenergy.com/outages…/ Outdoor_Lighting_Outages to report the outage. You will need to provide the approximate address, or gen- eral area, where the light is located. 6 Winter 2018 Fire Department Update Your Lake Elmo Fire Department by the Numbers: As of 10/31/2018, we responded to 381 emergency calls. 8 Structure Fires 27 Wildland and other fires 22 CO and Fire alarms 221 Medicals 103 Car accidents and other Misc. Rescue calls STAFFING is an ongoing struggle with an upward trend of emergency call volume. Our current staffing is as follows: • 14 (32 allotted) Active Paid On-Call Personnel, with 1 on Leave of absence and 2 new recruits in training. • 4 of 6 Part Time Firefighters with 2 in the hiring process. They provide minimal daytime response. • 1 Full Time Chief Your Lake Elmo Fire Department needs you as a Paid-on-Call Firefighter, now more than ever. If you’ve ever wondered what it takes, give us a call. We are “neighbors helping neighbors”. SAFE HAVEN is a simple residential self-assessment of home safety and security jointly sponsored by the Lake Elmo Fire Department and Washington County Sheriff’s Office. Our goal is for you to be as safe as possible in your own home. We hope the only time you see a fire truck is during a parade and avoid the need to call us for an emergency, by providing these home safety tips. We can accomplish this best through education, prevention, and an ongoing partnership as your Fire Department. That is exactly what Safe Ha- ven is about. If you have questions or know that you would like some services, please call the Lake Elmo Fire Department at 651-770-5006. Hope to hear from you soon. In the meantime, have a GREAT and SAFE winter! Winter tips: With the cold and snowy conditions of winter, come many related safety concerns. While too numerous to list, we have some of the more common ones below along with links for more information. • Slips, trips, and falls - So make sure you keep your walk and driveways clean and clear of snow and ice. • Never discard hot ashes or coals into a combustible container, use a metal pail. They may seem cool, but could re-ignite and start a fire. • Smoke Alarms - https://dps.mn.gov/divisions/sfm/for-families/Documents/Fact%20sheets/Smoke-alarm- fact-sheet-final.pdf • Carbon Monoxide Detectors - https://dps.mn.gov/divisions/sfm/for-families/Documents/Fact%20sheets/ CO-alarm-fact-sheet.pdf Additional safety tips can be found with the MN State Fire Marshals, Fire Facts and Tips – https://dps.mn.gov/divisions/sfm/for-families/Pages/fire-facts-tips-what-you-need-to-know.aspx FIRE HYDRANTS – along with the snow comes the need to make sure fire hydrants are accessible at all times. If you are able, please clear the snow from around any hydrants near your home and neighborhood. Our Part Time Firefighters will also be out clearing snow from hydrants. Thank you in advance. 7 Winter 2018 Online Bill Pay Now Available! Lion’s Park Signs The City is taking orders for new signs at Lion’s Park for the 2019 season. If you’d like to purchase a sign to advertise on the Lion’s Park ballpark fence, or renew your current sign, the deadline to do so is April 1, 2019. The cost of the signs are $500 per year for a 4’x8’ sign, and $900 per year for a 4’x16’ sign. To begin work on designing your sign, email Kathy Weeks at weeksendsigns@aol. com. For all other questoins contact City Administrator, Kristina Handt at khandt@lakeelmo.org or 651-747-3905. The City of Lake Elmo has launched a new online bill pay option for utility bills. To pay your bill online, visit the City’s website at: www.lakeelmo.org. Once on the website, click on the “Online Bill Pay Now Available” article under the City News & Events heading. Click the “Pay Online” button and create new account using the “First-time User” button on the next page. Once your account is created you will be able to login with your email address and your newly created password. Please note that your “Utility Account Number” will be required to create a new login, so have your utility bill ready! 8 Winter 2018 Mayor Mike Pearson Council Justin Bloyer Julie Fliflet Jill Lundgren Christine Nelson City Administrator Kristina Handt Internet: www.lakeelmo.org Email: comments@lakeelmo.org POLICE-FIRE Emergency: 9-1-1 Non-emergency: (651) 439-9381 A publication of the City of Lake Elmo 3880 Laverne Ave. N., Lake Elmo MN 55042 • 651-747-3900 PRSTD STD US POSTAGE PAID PERMIT NO. 19 LAKE ELMO, MN 3880 Laverne Ave. N. Lake Elmo, MN 55042 POSTAL PATRON LAKE ELMO MN 55042 www.facebook.com/LakeElmoMN Public Works Contact Info:Winter activities in Lake Elmo Parks Public Works: 651-747-3940 Emergency: Monday – Friday: 8:00 a.m. – 4:30 p.m. City Hall: 651-747-3900 All other hours and weekends, Washington County Dispatch: 651-439-9381 Are you looking for something to do outdoors this winter? Below are a few activities you can enjoy doing in Lake Elmo City Parks. • Ice Skating – Lion’s Park has a Hockey and Pleasure Rink along with a Warming House. The rinks will open once the weather becomes cold enough to sustain hard ice. Warming House hours are 3-9pm Monday-Friday and 12-9pm Saturday-Sunday and days when school is out. • Cross Country Skiing/Hiking/Sledding – Sunfish Lake Park has groomed trails for those that enjoy skiing, snow shoeing and hiking. You can also enjoy the sledding hill located in the park. • Sledding – Tablyn Park boasts a sledding hill that is a popular spot for many to come and test their skills at downhill sledding STAFF REPORT DATE: November 20, 2018 CONSENT ITEM #: 7 AGENDA ITEM: 2018 Street Improvements – Pay Request No. 4 SUBMITTED BY: Amanda Groh, Project Engineer REVIEWED BY: Kristina Handt, City Administrator Jack Griffin, City Engineer Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve Pay Request No. 4 for the 2018 Street Improvements? BACKGROUND: Valley Paving, Inc. was awarded a construction contract on May 15, 2018 to complete the 2018 Street Improvements project. Construction work remains in progress. On October 2, 2018, the contractor was granted a three-week extension from their original completion date of September 21, 2018. The current substantial completion date for the project is October 12, 2018. PROPOSAL DETAILS/ANALYSIS: Valley Paving, Inc., has submitted Partial Pay Request No. 4 in the amount of $361,542.17. The request has been reviewed and payment is recommended in the amount requested. In accordance with the contract documents, the City has retained 5% of the total work completed. The amount retained is $45,770.66. FISCAL IMPACT: None. Partial payment is proposed in accordance with the Contract for the project. Payment remains within the authorized scope and budget. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, Pay Request No. 4 for the 2018 Street Improvements. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Pay Request No. 4 to Valley Paving, Inc. in the amount of $361,542.17 for the 2018 Street Improvements project”. ATTACHMENTS: 1. Partial Pay Estimate No. 4 PARTIAL PAY ESTIMATE NO. 4 2018 STREET IMPROVEMENTS CITY OF LAKE ELMO, MINNESOTA PROJECT NO. 2017.156 QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT 1 LS 1 $36,000.00 $36,000.00 0.00 $0.00 1.00 $36,000.00 2 LS 1 $4,000.00 $4,000.00 0.00 $0.00 1.00 $4,000.00 3 LF 500 $4.50 $2,250.00 0.00 $0.00 16.00 $72.00 4 EA 30 $135.00 $4,050.00 10.00 $1,350.00 20.00 $2,700.00 5 EA 5 $230.00 $1,150.00 0.00 $0.00 0.00 $0.00 6 HR 30 $150.00 $4,500.00 12.50 $1,875.00 29.50 $4,425.00 7 EA 10 $450.00 $4,500.00 0.00 $0.00 4.00 $1,800.00 8 EA 10 $150.00 $1,500.00 0.00 $0.00 4.00 $600.00 9 EA 88 $100.00 $8,800.00 22.00 $2,200.00 67.00 $6,700.00 10 LF 1,400 $2.00 $2,800.00 650.00 $1,300.00 1,130.00 $2,260.00 11 LF 460 $4.10 $1,886.00 392.00 $1,607.20 392.00 $1,607.20 12 SY 800 $5.50 $4,400.00 447.00 $2,458.50 743.00 $4,086.50 13 SY 300 $14.00 $4,200.00 362.00 $5,068.00 362.00 $5,068.00 14 LF 270 $9.00 $2,430.00 0.00 $0.00 121.00 $1,089.00 15 SF 36 $15.00 $540.00 0.00 $0.00 42.00 $630.00 16 CY 500 $24.00 $12,000.00 0.00 $0.00 0.00 $0.00 17 SY 32,255 $1.40 $45,157.00 0.00 $0.00 30,766.00 $43,072.40 18 CY 2,130 $7.00 $14,910.00 0.00 $0.00 2,317.00 $16,219.00 19 RS 102 $170.00 $17,340.00 0.00 $0.00 102.00 $17,340.00 20 TN 3,630 $49.00 $177,870.00 2,347.00 $115,003.00 3,353.00 $164,297.00 21 TN 2,722 $53.50 $145,627.00 2,612.00 $139,742.00 2,612.00 $139,742.00 22 GAL 1,921 $1.50 $2,881.50 950.00 $1,425.00 1,000.00 $1,500.00 23 SY 800 $21.00 $16,800.00 460.00 $9,660.00 756.00 $15,876.00 24 SY 300 $70.00 $21,000.00 362.00 $25,340.00 362.00 $25,340.00 25 TN 10 $55.00 $550.00 0.00 $0.00 17.50 $962.50 26 LF 6,300 $2.32 $14,616.00 0.00 $0.00 0.00 $0.00 27 LF 13,810 $11.00 $151,910.00 0.00 $0.00 13,103.00 $144,133.00 28 LF 6,425 $10.00 $64,250.00 0.00 $0.00 6,496.00 $64,960.00 29 LF 110 $21.00 $2,310.00 0.00 $0.00 98.00 $2,058.00 30 SY 40 $72.00 $2,880.00 0.00 $0.00 46.00 $3,312.00 31 SF 100 $7.00 $700.00 70.00 $490.00 115.00 $805.00 32 EA 4 $575.00 $2,300.00 0.00 $0.00 4.00 $2,300.00 33 LS 1 $2,900.00 $2,900.00 0.00 $0.00 0.50 $1,450.00 34 LF 300 $21.00 $6,300.00 0.00 $0.00 0.00 $0.00 35 EA 6 $500.00 $3,000.00 0.00 $0.00 0.00 $0.00 36 EA 9 $900.00 $8,100.00 2.00 $1,800.00 10.00 $9,000.00 37 EA 1 $1,500.00 $1,500.00 0.00 $0.00 3.00 $4,500.00 38 LF 246 $9.00 $2,214.00 0.00 $0.00 261.00 $2,349.00 39 EA 6 $350.00 $2,100.00 0.00 $0.00 6.00 $2,100.00 40 EA 5 $900.00 $4,500.00 0.00 $0.00 5.00 $4,500.00 41 EA 6 $2,400.00 $14,400.00 0.00 $0.00 6.00 $14,400.00 42 EA 1 $2,400.00 $2,400.00 0.00 $0.00 1.00 $2,400.00 43 EA 3 $4,500.00 $13,500.00 0.00 $0.00 3.00 $13,500.00 44 EA 6 $3,100.00 $18,600.00 0.00 $0.00 6.00 $18,600.00 45 EA 1 $3,650.00 $3,650.00 0.00 $0.00 1.00 $3,650.00 46 LF 94 $46.00 $4,324.00 0.00 $0.00 95.00 $4,370.00 47 LF 370 $48.00 $17,760.00 0.00 $0.00 365.00 $17,520.00 48 LF 112 $56.00 $6,272.00 0.00 $0.00 109.00 $6,104.00 49 EA 2 $1,100.00 $2,200.00 0.00 $0.00 2.00 $2,200.00 50 EA 3 $1,250.00 $3,750.00 0.00 $0.00 3.00 $3,750.00 51 CY 17 $116.00 $1,972.00 0.00 $0.00 15.00 $1,740.00 52 LF 340 $9.00 $3,060.00 0.00 $0.00 290.00 $2,610.00 53 CY 2,260 $21.50 $48,590.00 1,040.00 $22,360.00 1,525.00 $32,787.50 54 SY 1,500 $1.80 $2,700.00 821.00 $1,477.80 821.00 $1,477.80 55 SY 12,100 $5.80 $70,180.00 3,225.00 $18,705.00 3,225.00 $18,705.00 56 EA 13 $50.00 $650.00 0.00 $0.00 0.00 $0.00 $1,020,729.50 $351,861.50 $880,667.90 1 TN 3,630 $6.00 $21,780.00 2,347.00 $14,082.00 3,353.00 $20,118.00 2 TN 2,722 $5.60 $15,243.20 2,612.00 $14,627.20 2,612.00 $14,627.20 3 LF -6,300 $2.32 -$14,616.00 0.00 $0.00 0.00 $0.00 SEEDING, FERTILIZER, AND EROSION CONTROL BLANKET SODDING SALVAGE AND REINSTALL SIGN 15" RCP STORM SEWER, CLASS 5 18" RCP STORM SEWER, CLASS 5 CLASS 3 RIP RAP WITH FABRIC DITCH GRADING IMPORT AND PLACE TOPSOIL BORROW (LV) SAW & SEAL STREET (40' INTERVALS) B418 CONCRETE CURB & GUTTER CONCRETE RIBBON CURB SURMOUNTABLE CONCRETE CURB AND GUTTER CONCRETE VALLEY GUTTER TYPE SP 9.5 BITUMINOUS WEARING COURSE MIXTURE (2,B) [SPWEA230B] BITUMINOUS MATERIAL FOR TACK COAT BITUMINOUS DRIVEWAY PAVEMENT 6" CONCRETE DRIVEWAY PAVEMENT (HIGH EARLY) PATCH GRAVEL DRIVEWAY TRAFFIC CONTROL SILT FENCE, HAND INSTALLED INLET PROTECTION DITCH CHECK STREET SWEEPING CLEARING GRUBBING SALVAGE AND REINSTALL MAILBOX ALTERNATE NO. 1 BITUMINOUS MIXTURE SPNWB230C IN LIEU OF SPNWB230B (ADD / DEDUCT TO BASE BI BITUMINOUS MIXTURE SPWEA230C IN LIEU OF SPWEA230B (ADD / DEDUCT TO BASE BID SUBTOTAL - BASE BID 4' DIA CBMH WITH CASTING PER DETAIL 406 CONCRETE MATURITY TESTING BASE BID MOBILIZATION DELETE BID ITEM 25 - SAW & SEAL STREET (40' INTERVALS) SAWCUT BITUMINOUS PAVEMENT SAWCUT CONCRETE PAVEMENT REMOVE AND DISPOSE OF EXISTING BITUMINOUS PAVEMENT (DRIVEWAY) REMOVE AND DISPOSE OF EXISTING CONCRETE PAVEMENT (DRIVEWAY) REMOVE AND DISPOSE OF EXISTING CONCRETE CURB AND GUTTER REMOVE AND DISPOSE OF MODULAR BLOCK RETAINING WALL SUBGRADE CORRECTION (CV) RECLAIM EXISTING BITUMINOUS AND BASE MATERIALS, 8" DEPTH HAUL EXCESS RECLAIMED MATERIAL OFF SITE (LV) SUBGRADE PREPARATION OF RECLAIMED SURFACE TYPE SP 12.5 BITUMINOUS NON WEARING COURSE MIXTURE (2,B) [SPNWB230B] 15" RCP FLARED END SECTION INCL TRASH GUARD 18" RCP FLARED END SECTION INCL TRASH GUARD ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE DRAINTILE CLEANOUT REMOVE AND REPLACE CASTING AND RINGS 6" CONCRETE FLUME HIGH CAPACITY CONCRETE APRON REMOVE AND REPLACE 4' DIA BARREL SECTION REMOVE AND DISPOSE OF EXISTING STORM SEWER PIPE REMOVE AND DISPOSE OF EXISTING STORM SEWER STRUCTURE CONNECT TO EXISTING STORM SEWER PERFORATED PVC EDGE DRAIN 2' X 3' CATCH BASIN WITH CASTING PER DETAIL 404 27" DIA MH WITH CASTING 4' DIA CBMH WITH SUMP AND CASTING PER DETAIL 405 4' DIA MH WITH CASTING PER DETAIL 409 12" RCP STORM SEWER, CLASS 5 QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE $22,407.20 $28,709.20 $34,745.20 TOTALS - BASE CONTRACT $1,043,136.70 $380,570.70 $915,413.10 SUBTOTAL - ALTERNATE NO. 1 STAFF REPORT DATE: November 20, 2018 CONSENT ITEM #: 8 AGENDA ITEM: Old Village Phase 4 Street, Drainage & Utility Improvements – Pay Request #4. SUBMITTED BY: Chad Isakson, Project Engineer REVIEWED BY: Kristina Handt, City Administrator Jack Griffin, City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve Pay Request No. 4 for the Old Village Phase 4: Street, Drainage and Utility Improvements? BACKGROUND: A-1 Excavating, Inc. was awarded a construction contract on June 5, 2018 to complete the Old Village Phase 4: Street, Drainage, and Utility Improvements. PROPOSAL DETAILS/ANALYSIS: A-1 Excavating, Inc., has submitted Partial Pay Request No. 4 in the amount of $309,805.00. The request has been reviewed and payment is recommended in the amount requested. In accordance with the contract documents, the City has retained 5% of the total work completed. The amount retained is $67,598.41. FISCAL IMPACT: None. Partial payment is proposed in accordance with the Contract for the project. Payment remains within the authorized scope and budget. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, Pay Request No. 4 for the Old Village Phase 4: Street, Drainage, and Utility Improvements. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Pay Request No. 4 to A-1 Excavating, Inc. in the amount of $309,805.00 for the Old Village Phase 4: Street, Drainage, and Utility Improvements project”. ATTACHMENTS: 1. Partial Pay Estimate No. 4. PROJECT PAY FORM PARTIAL PAY ESTIMATE NO. PERIOD OF ESTIMATE TO PROJECT OWNER:CONTRACTOR: 1. Original Contract Amount 2. Net Change Order Sum 3. Revised Contract (1+2) 4. *Work Completed 5. *Stored Materials 6. Subtotal (4+5) 7. Retainage* 8. Previous Payments 9. Amount Due (6‐7‐8) *Detailed Breakdown Attached START DATE:ON SCHEDULE SUBSTANTIAL COMPLETION: FINAL COMPLETION:X ENGINEER'S CERTIFICATION: FOCUS ENGINEERING, Inc. DATE CONTRACTOR'S CERTIFICATION:CONTRACTOR DATE APPROVED BY OWNER:CITY OF LAKE ELMO, MINNESOTA DATE DATE No.Approval Date Amount $1,698,744.21 Additions Deductions $31,511.00 2 10/16/2018 $6,993.00 $1,351,968.12 1 6/5/2018 $24,518.00 $1,730,255.21 $1,351,968.12 $0.00 $974,564.72 $67,598.415.0% CONTRACT TIME TOTALS $31,511.00 $0.00 $309,805.00 NET CHANGE $31,511.00 CONTRACT CHANGE ORDER SUMMARY PAY ESTIMATE SUMMARY 4 10/31/201810/1/2018FROM OLD VILLAGE PHASE 4 IMPROVEMENTS PROJECT NO. 2017.157 CITY OF LAKE ELMO 3880 LAVERNE AVENUE NORTH LAKE ELMO, MN 55042 ATTN: JACK GRIFFIN, CITY ENGINEER A‐1 EXCAVATING INC. 408 26TH AVENUE PO BOX 90 BLOOMER, WI 54724 ATTN: AL GINGRAS 7/23/2018 6/21/2019 REVISED DAYS REMAINING 333 0 233 10/20/2018 ORIGINAL DAYS BY BY YES NO The undersigned Contractor certifies that to the best of their knowledge, information and belief the work covered by this payment estimate has been completed in accordance with the contract documents, that all amounts have been paid by the contractor for work for which previous payment estimates was issued and payments received from the owner, and that current payment shown herein is now due. The undersigned certifies that the work has been reviewed and to the best of their knowledge and belief, the quantities shown in this estimate are correct and the work has been performed in accordance with the contract documents. ENGINEER BY 11/09/2018 FOCUS Engineering, inc.PROJECT PAYMENT FORM 11/13/18 PARTIAL PAY ESTIMATE NO. 4 OLD VILLAGE PHASE 4 IMPROVEMENTS CITY OF LAKE ELMO, MINNESOTA PROJECT NO. 2017.157 QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT 1 LS 1 $85,000.00 $85,000.00 0.00 $0.00 0.75 $63,750.00 2 ACRE 0.2 $11,000.00 $2,200.00 0.00 $0.00 0.25 $2,750.00 3 TREE 17 $550.00 $9,350.00 0.00 $0.00 20.00 $11,000.00 4 EACH 3 $220.00 $660.00 0.00 $0.00 3.00 $660.00 5 SY 516 $3.00 $1,548.00 0.00 $0.00 516.00 $1,548.00 6 LF 1284 $8.00 $10,272.00 0.00 $0.00 1,215.00 $9,720.00 7 LF 100 $5.00 $500.00 7.00 $35.00 7.00 $35.00 8 LF 300 $5.00 $1,500.00 0.00 $0.00 300.00 $1,500.00 9 LF 460 $5.00 $2,300.00 0.00 $0.00 620.00 $3,100.00 10 LF 1100 $5.50 $6,050.00 0.00 $0.00 0.00 $0.00 11 SY 5743 $3.00 $17,229.00 0.00 $0.00 5,743.00 $17,229.00 12 SY 1710 $2.50 $4,275.00 0.00 $0.00 1,710.00 $4,275.00 13 SY 2266 $2.50 $5,665.00 502.00 $1,255.00 2,356.00 $5,890.00 14 SY 369 $2.50 $922.50 90.00 $225.00 336.00 $840.00 15 SF 88 $2.50 $220.00 0.00 $0.00 41.40 $103.50 16 LF 50 $11.00 $550.00 50.00 $550.00 120.00 $1,320.00 17 LF 115 $12.00 $1,380.00 12.00 $144.00 127.00 $1,524.00 18 EACH 2 $125.00 $250.00 0.00 $0.00 2.00 $250.00 19 EACH 2 $225.00 $450.00 0.00 $0.00 2.00 $450.00 20 EACH 5 $350.00 $1,750.00 0.00 $0.00 5.00 $1,750.00 21 EACH 1 $7,000.00 $7,000.00 0.00 $0.00 1.00 $7,000.00 22 EACH 4 $350.00 $1,400.00 0.00 $0.00 4.00 $1,400.00 23 LF 180 $12.00 $2,160.00 180.00 $2,160.00 180.00 $2,160.00 24 LF 950 $8.00 $7,600.00 0.00 $0.00 865.00 $6,920.00 25 LF 276 $5.00 $1,380.00 131.00 $655.00 267.00 $1,335.00 26 LF 1265 $3.50 $4,427.50 823.00 $2,880.50 1,062.00 $3,717.00 27 LF 40 $25.00 $1,000.00 0.00 $0.00 20.00 $500.00 28 EACH 2 $55.00 $110.00 0.00 $0.00 0.00 $0.00 29 EACH 10 $250.00 $2,500.00 0.00 $0.00 5.00 $1,250.00 30 EACH 16 $225.00 $3,600.00 0.00 $0.00 8.00 $1,800.00 31 EACH 4 $950.00 $3,800.00 0.00 $0.00 4.00 $3,800.00 32 EACH 1 $350.00 $350.00 0.00 $0.00 1.00 $350.00 33 SF 50 $30.00 $1,500.00 0.00 $0.00 0.00 $0.00 34 CY 8030 $13.00 $104,390.00 2,859.00 $37,167.00 8,030.00 $104,390.00 35 CY 600 $18.00 $10,800.00 0.00 $0.00 122.30 $2,201.40 36 CY 5221 $14.20 $74,138.20 2,466.00 $35,017.20 5,221.00 $74,138.20 37 CY 420 $20.00 $8,400.00 0.00 $0.00 0.00 $0.00 38 SY 3493 $2.50 $8,732.50 0.00 $0.00 2,386.00 $5,965.00 39 CY 2085 $21.80 $45,453.00 938.00 $20,448.40 2,085.00 $45,453.00 40 HOUR 40 $145.00 $5,800.00 8.00 $1,160.00 28.00 $4,060.00 41 GAL 265 $1.50 $397.50 70.00 $105.00 70.00 $105.00 42 TON 447 $93.00 $41,571.00 0.00 $0.00 0.00 $0.00 43 TON 60 $93.00 $5,580.00 0.00 $0.00 0.00 $0.00 44 TON 147 $75.00 $11,025.00 0.00 $0.00 0.00 $0.00 45 TON 357 $79.00 $28,203.00 0.00 $0.00 0.00 $0.00 46 TON 119 $1.10 $130.90 0.00 $0.00 0.00 $0.00 47 TON 194 $72.00 $13,968.00 181.00 $13,032.00 181.00 $13,032.00 48 TON 378 $76.85 $29,049.30 357.14 $27,446.21 357.14 $27,446.21 49 TON 216 $88.96 $19,215.36 0.00 $0.00 0.00 $0.00 50 LF 495 $3.70 $1,831.50 0.00 $0.00 0.00 $0.00 51 LF 748 $10.00 $7,480.00 0.00 $0.00 462.00 $4,620.00 52 LS 1 $7,000.00 $7,000.00 0.50 $3,500.00 1.00 $7,000.00 53 EACH 4 $975.00 $3,900.00 0.00 $0.00 4.00 $3,900.00 54 EACH 3 $1,060.00 $3,180.00 0.00 $0.00 3.00 $3,180.00 55 EACH 1 $1,180.00 $1,180.00 0.00 $0.00 1.00 $1,180.00 56 LF 2455 $11.00 $27,005.00 250.00 $2,750.00 1,407.00 $15,477.00 57 LF 60 $16.50 $990.00 0.00 $0.00 0.00 $0.00 58 EACH 25 $405.00 $10,125.00 3.00 $1,215.00 9.00 $3,645.00 59 EACH 8 $620.00 $4,960.00 2.00 $1,240.00 2.00 $1,240.00 60 LF 1496 $47.00 $70,312.00 0.00 $0.00 1,520.00 $71,440.00 61 LF 176 $51.00 $8,976.00 0.00 $0.00 155.00 $7,905.00 62 LF 293 $54.00 $15,822.00 0.00 $0.00 277.00 $14,958.00 63 LF 412 $59.00 $24,308.00 0.00 $0.00 478.00 $28,202.00 64 LF 575 $151.00 $86,825.00 0.00 $0.00 575.00 $86,825.00 65 LF 116 $142.00 $16,472.00 0.00 $0.00 116.00 $16,472.00 66 LF 45 $162.00 $7,290.00 0.00 $0.00 45.00 $7,290.00 67 EACH 2 $3,230.00 $6,460.00 0.00 $0.00 2.00 $6,460.00 68 EACH 1 $1,550.00 $1,550.00 0.00 $0.00 1.00 $1,550.00 69 EACH 2 $2,060.00 $4,120.00 0.00 $0.00 2.00 $4,120.00 70 EACH 3 $2,490.00 $7,470.00 0.00 $0.00 3.00 $7,470.00 71 EACH 1 $8,325.00 $8,325.00 0.00 $0.00 1.00 $8,325.00 72 EACH 1 $3,380.00 $3,380.00 0.00 $0.00 1.00 $3,380.00 73 EACH 3 $3,780.00 $11,340.00 0.00 $0.00 3.00 $11,340.00 74 EACH 1 $9,080.00 $9,080.00 0.00 $0.00 1.00 $9,080.00 75 EACH 1 $11,050.00 $11,050.00 0.00 $0.00 1.00 $11,050.00 76 EACH 1 $23,000.00 $23,000.00 0.00 $0.00 1.00 $23,000.00 77 EACH 7 $325.00 $2,275.00 0.00 $0.00 7.00 $2,275.00 78 EACH 5 $370.00 $1,850.00 0.00 $0.00 5.00 $1,850.00 42" RC Pipe Sewer, Des 3006 CL III 18" RC Pipe Sewer, Des 3006 CL V 44" Span RC Pipe‐Arch Sewer, CL IIA Connect to Existing Sanitary Sewer Construct Drainage Structure 27" (w/ Casting) Construct Drainage Structure 2'x3' (w/ Casting) 12" RC Pipe Sewer, Des 3006 CL V Construct Drainage Structure Des. CC ‐ 48" (w/ Casting) Construct Drainage Structure Des. CC ‐ 48" Special (w/ 4' Sump, MH Baffle Construct Drainage Structure Des. CC ‐ 60" (w/ Casting) Construct Drainage Structure Des. CC ‐ 72" (w/ Casting) Construct Drainage Structure Des. CC ‐ 84" (w/ Casting) Construct Drainage Structure Des. CC ‐ 96" (w/ Casting) Construct Drainage Structure Des. CC ‐ 120" (w/ Casting) 8"X4" PVC Wye, SDR 26 8"X6" PVC Wye, SDR 26 Geotextile Fabric, Type V Agg. Base, Cl. 6 (CV) (P) Street Sweeping Bit. Material for Tack Coat Type SP 9.5 Wearing Course Mix (2,B) (Parking Lots, Driveways & Bike Trails Type SP 12.5 Wearing Course Mix (3,C) Bituminous Wedge Paving Saw & Seal Joint (40' Intervals) Pipe Foundation Rock Trench Drain and Grate System Type SP 9.5 Wearing Course Mix (2,B) (Pickleball Courts) Type SP 9.5 Wearing Course Mix (3,B) Type SP 9.5 Wearing Course Mix (3,C) Type SP 12.5 Wearing Course Mix (2,B) (Pickleball Courts) Type SP 12.5 Wearing Course Mix (3,B) Draintile Cleanout Draintile Cleanout Casting (R‐1914‐A) 8" PVC Pipe Sewer (SDR 26) 12" RC Pipe Apron w/Trash Guard 15" RC Pipe Apron w/Trash Guard 18" RC Pipe Apron w/Trash Guard 4" PVC Perf. Edge Drain w/ Backfill & Wrap 4" PVC Pipe Sewer 36" Span RC Pipe‐Arch Sewer, CL IIA Salvage Lighting Unit 15" RC Pipe Sewer, Des 3006 CL V Remove Playground Edging Remove Tennis Court Fencing Remove Conductors and Conduit Pulverize Bituminous Pavement (P) Remove Retaining Wall Remove Bollards Remove Bituminous Tennis & Basketball Court Pavement Remove Concrete Driveway Pavement Remove Concrete Walk Remove Culvert Salvage and Install Wooden Fence & Archway Salvage Sign (Type C or Street Name Sign) Salvage & Install Sign Type C Salvage & Install Mailbox Assembly Remove Bituminous Driveway & Parking Lot Pavement Salvage Basketball Hoop & Pole Assembly Remove Gate Valve & Box Salvage & Install Landscape Steps (Incl. Mulch & Steps) Common Excavation (P) Subgrade Correction (EV)(Includes Select Granular Borrow ‐ Mod 5%) Select Granular Borrow ‐ Mod. 5% (CV) (P) Volleyball Court Sand (18" Depth) ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE DIVISION 1 Mobilization Clearing & Grubbing Clearing & Grubbing Remove Hydrant Remove Service Cabinet Remove Light Foundation Abandon Culvert Pipe Abandon Water Main Sawing Concrete Pavement (Full Depth) Sawing Bit Pavement (Full Depth) Grub Stump Remove Mulch Remove Concrete Curb & Gutter Remove Water Main Pipe QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE 79 EACH 1 $2,000.00 $2,000.00 0.00 $0.00 1.00 $2,000.00 80 EACH 10 $105.00 $1,050.00 0.00 $0.00 10.00 $1,050.00 81 EACH 10 $645.00 $6,450.00 0.00 $0.00 10.00 $6,450.00 82 LF 233 $37.00 $8,621.00 0.00 $0.00 264.00 $9,768.00 83 LF 164 $39.00 $6,396.00 0.00 $0.00 181.00 $7,059.00 84 LF 335 $36.00 $12,060.00 0.00 $0.00 297.00 $10,692.00 85 LF 625 $32.00 $20,000.00 0.00 $0.00 630.00 $20,160.00 86 EACH 22 $85.00 $1,870.00 0.00 $0.00 0.00 $0.00 87 EACH 6 $3,750.00 $22,500.00 0.00 $0.00 6.00 $22,500.00 88 LF 1496 $1.50 $2,244.00 0.00 $0.00 1,496.00 $2,244.00 89 SY 18 $36.00 $648.00 0.00 $0.00 10.60 $381.60 90 LF 200 $25.00 $5,000.00 0.00 $0.00 0.00 $0.00 91 LS 1 $8,000.00 $8,000.00 0.00 $0.00 1.00 $8,000.00 92 EACH 19 $200.00 $3,800.00 0.00 $0.00 21.00 $4,200.00 93 EACH 5 $490.00 $2,450.00 0.00 $0.00 4.00 $1,960.00 94 EACH 19 $360.00 $6,840.00 0.00 $0.00 20.00 $7,200.00 95 EACH 5 $680.00 $3,400.00 0.00 $0.00 4.00 $2,720.00 96 EACH 4 $1,700.00 $6,800.00 0.00 $0.00 5.00 $8,500.00 97 EACH 24 $200.00 $4,800.00 0.00 $0.00 22.00 $4,400.00 98 EACH 3 $180.00 $540.00 0.00 $0.00 0.00 $0.00 99 EACH 8 $4,290.00 $34,320.00 0.00 $0.00 7.00 $30,030.00 100 EACH 9 $1,300.00 $11,700.00 0.00 $0.00 9.00 $11,700.00 101 EACH 2 $1,650.00 $3,300.00 0.00 $0.00 5.00 $8,250.00 102 LF 705 $38.00 $26,790.00 0.00 $0.00 711.00 $27,018.00 103 LF 170 $45.00 $7,650.00 0.00 $0.00 130.00 $5,850.00 104 LF 128 $51.00 $6,528.00 0.00 $0.00 92.00 $4,692.00 105 LF 2120 $54.00 $114,480.00 0.00 $0.00 2,051.00 $110,754.00 106 LB 925 $8.00 $7,400.00 0.00 $0.00 1,393.00 $11,144.00 107 CY 10 $100.00 $1,000.00 0.00 $0.00 6.00 $600.00 108 SF 1605 $5.05 $8,105.25 1,492.30 $7,536.12 1,492.30 $7,536.12 109 SF 50 $6.75 $337.50 80.00 $540.00 80.00 $540.00 110 EACH 50 $7.40 $370.00 40.00 $296.00 40.00 $296.00 111 LF 400 $24.50 $9,800.00 250.00 $6,125.00 250.00 $6,125.00 112 LF 966 $14.50 $14,007.00 1,052.00 $15,254.00 1,052.00 $15,254.00 113 LF 2400 $14.00 $33,600.00 2,167.00 $30,338.00 2,167.00 $30,338.00 114 LF 630 $12.50 $7,875.00 557.00 $6,962.50 557.00 $6,962.50 115 LF 390 $28.00 $10,920.00 47.00 $1,316.00 659.00 $18,452.00 116 LF 300 $34.00 $10,200.00 0.00 $0.00 0.00 $0.00 117 SY 355 $67.00 $23,785.00 617.40 $41,365.80 617.40 $41,365.80 118 SY 500 $77.00 $38,500.00 274.00 $21,098.00 274.00 $21,098.00 119 SY 150 $58.00 $8,700.00 154.00 $8,932.00 154.00 $8,932.00 120 SF 20 $71.00 $1,420.00 20.00 $1,420.00 20.00 $1,420.00 121 EACH 1 $10,400.00 $10,400.00 1.00 $10,400.00 1.00 $10,400.00 122 EACH 1 $5,240.00 $5,240.00 0.00 $0.00 0.00 $0.00 123 EACH 1 $1,340.00 $1,340.00 1.00 $1,340.00 1.00 $1,340.00 124 EACH 4 $1,660.00 $6,640.00 4.00 $6,640.00 4.00 $6,640.00 125 EACH 4 $1,400.00 $5,600.00 4.00 $5,600.00 4.00 $5,600.00 126 LF 280 $12.40 $3,472.00 300.00 $3,720.00 300.00 $3,720.00 127 LF 950 $2.50 $2,375.00 900.00 $2,250.00 900.00 $2,250.00 128 LF 960 $1.45 $1,392.00 864.00 $1,252.80 864.00 $1,252.80 129 LS 1 $5,500.00 $5,500.00 0.05 $275.00 0.80 $4,400.00 130 SF 36 $60.00 $2,160.00 0.00 $0.00 0.00 $0.00 131 EACH 2 $385.00 $770.00 0.00 $0.00 0.00 $0.00 132 LF 80 $8.80 $704.00 0.00 $0.00 0.00 $0.00 133 LF 1250 $1.00 $1,250.00 0.00 $0.00 0.00 $0.00 134 LS 1 $6,600.00 $6,600.00 0.00 $0.00 0.00 $0.00 135 EACH 4 $1,650.00 $6,600.00 0.00 $0.00 0.00 $0.00 136 EACH 4 $4,400.00 $17,600.00 0.00 $0.00 0.00 $0.00 137 LF 360 $3.50 $1,260.00 0.00 $0.00 140.00 $490.00 138 EACH 8 $150.00 $1,200.00 0.00 $0.00 0.00 $0.00 139 CY 2382 $30.00 $71,460.00 0.00 $0.00 0.00 $0.00 140 SY 7563 $5.30 $40,083.90 0.00 $0.00 0.00 $0.00 141 ACRE 0.06 $10,450.00 $627.00 0.00 $0.00 0.00 $0.00 142 SY 250 $3.00 $750.00 0.00 $0.00 0.00 $0.00 143 SY 463 $8.60 $3,981.80 0.00 $0.00 0.00 $0.00 144 LF 750 $3.00 $2,250.00 0.00 $0.00 0.00 $0.00 145 SY 675 $9.00 $6,075.00 0.00 $0.00 0.00 $0.00 146 SY 45 $5.50 $247.50 0.00 $0.00 0.00 $0.00 147 EACH 3 $1,200.00 $3,600.00 0.00 $0.00 3.00 $3,600.00 $1,698,744.21 $323,646.52 $1,325,286.12 TOTALS ‐ BASE CONTRACT $1,698,744.21 $323,646.52 $1,325,286.12 CHANGE ORDER NO. 1 CO1‐1 LF 262 $59.00 $15,458.00 0.00 $0.00 262.00 $15,458.00 CO1‐2 EACH 2 $2,490.00 $4,980.00 0.00 $0.00 2.00 $4,980.00 CO1‐3 EACH 1 $3,780.00 $3,780.00 0.00 $0.00 1.00 $3,780.00 CO1‐4 EACH 2 $150.00 $300.00 0.00 $0.00 0.00 $0.00 TOTALS ‐ CHANGE ORDER NO. 1 $24,518.00 $0.00 $24,218.00 Erosion Control Blanket Category 3N Turf Reinforcement Mat Category 1 Sediment Control Log Wood Playground Chips (12" Depth) Wood Landscape Mulch (4" thick) Sign, Type Special (Street Name) 4" Solid Line White Epoxy 4" Double Solid Yellow Epoxy Color Coating for Pickleball Courts Pickleball Court Striping Epoxy Pickleball Net and Post System Silt Fence, Preassembled Storm Drain Inlet Protection Common Topsoil Borrow (Pulverized) (LV) Light Foundation Install Lighting Unit 2" Non‐Metallic Conduit Underground Wire 1/C 8 AWG Underground Wire 1/C 12 AWG Traffic Control Sign Panels, Type C Sodding, Type Mineral Seeding (Seed Mixture Type 33‐261) B6 Concrete Curb B612 Concrete Curb & Gutter 2" Pressure Cleanout & Curbstop Assembly 2"x1‐1/4" Fused Tee 1‐1/4" Curb Stop & Box 4" PVC Sanitary Service Pipe ‐ Sch40 6" PVC Sanitary Service Pipe ‐ Sch40 1‐1/4" HDPE Service Pipe Construct Drainage Struct Des. CC‐48" (w/ Casting) SUBTOTAL ‐ DIVISION 1 Construct Drainage Struct Des. CC‐72" (w/ Casting) Storm Sewer Drain Inlet Protection Service Equipment Equipment Pad B618 Concrete Curb & Gutter 18" Concrete Ribbon Curb 24" Concrete Edging (Pickleball Court) Surmountable Concrete Curb (Playground) 6" Concrete Driveway Pavement 8" Concrete Driveway Pavement 2" HDPE Pressure Pipe Tracer Wire Box ‐ (at property line) Sanitary Sewer Manhole (10' Deep) Sewer Televising 2" Rigid Insulation Relocate Irrigation System Temporary Water Service 1" Corporation Stop 2" Corporation Stop 6" Concrete Pavement Truncated Domes Service Cabinet 18" RC Pipe Sewer, Des 3006 CL V 1" Curb Stop & Box 2" Curb Stop & Box Connect to Existing Water Main Water Main Fittings Random Rip‐Rap, Class III (includes Geotextile Fabric) 5" Concrete Walk 6" Concrete Walk ‐ Pedestrian Ramp Epoxy‐Coated Reinforcement Bars Temporary Rock Construction Entrance Connect to Existing Water Service Adjust Gate Valve Box Hydrant 6" Gate Valve & Box 8" Gate Valve & Box 1" Type K Copper Pipe 2" Type K Copper Pipe 6" Water Main DIP ‐ CL 52 (Poly Encased) 8" Water Main DIP ‐ CL 52 (Poly Encased) QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE CHANGE ORDER NO. 2 CO2‐1 LF 350 $12.94 $4,529.00 0.00 $0.00 0.00 $0.00 CO2‐2 CY 70 $35.20 $2,464.00 70.00 $2,464.00 70.00 $2,464.00 TOTALS ‐ CHANGE ORDER NO. 2 $6,993.00 $2,464.00 $2,464.00 TOTALS ‐ REVISED CONTRACT $1,730,255.21 $326,110.52 $1,351,968.12 Split Rail Fence High Early Concrete Mix STAFF REPORT DATE: November 20, 2018 CONSENT ITEM #: 9 AGENDA ITEM: Approve Development Security Reductions for Hammes 1st & 2nd Additions SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Ken Roberts, Planning Director Chad Isakson, Assistance City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve development security reductions for the Hammes 1st and Hammes 2nd Additions? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed requests to reduce the development security in accordance with the various development projects. These requests have been reviewed and the following reductions are being recommended for approval: Current Security Amount Proposed Security Amount 1. Hammes 1st Addition $1,636,912 $1,441,912 2. Hammes 2nd Addition $ 890,789 $ 323,900 Work within each of these developments have progressed in accordance with the respective development agreement and to the extent necessary to support a reduction in the security as detailed in this report. FISCAL IMPACT: It is the City’s goal to retain at all times during the subdivision improvements a security amount that is adequate to ensure completion of all elements of the improvements as protection to the City tax payers against the potential of developer default. With this reduction, the remaining security amount held by the City remains sufficient to complete the remaining improvements. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, the security reductions for the Hammes 1st and Hammes 2nd Additions as detailed in this report and supporting documentation. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve security reductions for the Hammes 1st and Hammes 2nd Additions as detailed in the attached Security Reduction Worksheet.” ATTACHMENTS: 1. Security Reduction Worksheet – Hammes 1st Addition. 2. Security Reduction Worksheet – Hammes 2nd Addition. HAMMES 1ST ADDITION Time of Performance: October 31, 2017 DEVELOPMENT AGREEMENT AMOUNTS CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6 Grading $156,000 $195,000 $195,000 Sanitary Sewer $413,076 $516,345 $387,259 Watermain $298,624 $373,280 $279,960 Storm Sewer (w/pond structures) $492,748 $615,935 $461,951 Streets $430,598 $538,247 $403,685 Sidewalks/Trails $111,360 $139,200 Surface Water Facilities NA NA Street Lighting $54,000 $67,500 Street Signs and Traffic Control Signs $6,300 $7,875 Private Utilities (electricity, natural gas, telephone, and cable) Landscaping $244,922 $306,153 Tree Preservation and Restoration NA NA Wetland Mitigation and Buffers $50,000 $62,500 Monuments $5,700 $7,125 Erosion Control $195,986 $244,982 Boardwalk $66,500 $83,125 Record Drawings $10,000 $12,500 TOTALS $2,535,813 $3,169,767 RELEASED AMOUNTS:$1,532,855 $195,000 CUMMULATIVE AMOUNTS:$1,532,855 $1,727,855 SECURITY AMOUNT REMAINING:$1,636,912 $1,441,912 DATE:9/5/2017 11/20/2018 REDUCTIONS HAMMES 2ND ADDITION Time of Performance: October 31, 2017 DEVELOPMENT AGREEMENT AMOUNTS CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6 Grading NA NA Included in Phase 1 Sanitary Sewer $121,909 $152,386 $114,290 Watermain $107,523 $134,404 $100,803 Storm Sewer (w/pond structures) $139,803 $174,754 $131,065 Streets + Sidewalks $235,446 $294,308 $220,731 Bituminous Trails $7,783 $9,729 Surface Water Facilities NA NA Street Lighting $18,000 $22,500 Street Signs and Traffic Control Signs $1,000 $1,250 Private Utilities (electricity, natural gas, telephone, and cable) Landscaping $53,588 $66,985 Tree Preservation and Restoration NA NA Wetland Mitigation and Buffers NA NA Monuments $3,700 $4,625 Erosion Control $18,878 $23,598 Miscellaneous Facilities NA NA Record Drawings $5,000 $6,250 TOTALS $712,630 $890,789 RELEASED AMOUNTS:$566,888 $222,697.13 CUMMULATIVE AMOUNTS:$566,888 SECURITY AMOUNT REMAINING:$323,900 DATE:11/20/2018 REDUCTIONS STAFF REPORT DATE: November 20, 2018 CONSENT ITEM #: 10 AGENDA ITEM: Approve Development Security Reductions for Village Preserve 1st & Village Preserve 2nd Additions SUBMITTED BY: Ben Prchal, City Planner REVIEWED BY: Kristina Handt, City Administrator Ken Roberts, Planning Director Jack Griffin, City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve development security reductions for the Village Preserve 1st and 2nd Additions? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed requests to reduce the development security in accordance with the various development projects. These requests have been reviewed and the following reductions are being recommended for approval: The landscaping improvements have been fully completed including all punch list items and the two-year warranty period has been initiated. Therefore, the landscaping development security may be reduced by 75% with the remaining 25% held through the warranty period. Current Security Amount Proposed Security Amount 1. Village Preserve 1st Addition $ 441,789 $ 342,927 2. Village Preserve 2nd Addition $ 210,007 $ 184,933 (Please see the attached for a more detailed breakout) FISCAL IMPACT: It is the City’s goal to retain at all times during the subdivision improvements a security amount that is adequate to ensure completion of all elements of the improvements as protection to the City tax payers against the potential of developer default. With this reduction, the remaining security amount held by the City remains sufficient to complete the remaining improvements. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, the security reductions for the Village Preserve 1st and 2nd Additions as detailed in this report and supporting documentation. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve security reductions for the Village Preserve 1st and Village Preserve 2nd Additions as detailed in the attached Security Reduction Worksheet.” ATTACHMENTS: 1. Security Reduction Worksheet – Village Preserve 1st Addition. 2. Security Reduction Worksheet – Village Preserve 2nd Addition. VILLAGE PRESERVE 1ST ADDITION Time of Performance: November 20, 2018 DEVELOPMENT AGREEMENT AMOUNTS CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6 Grading $79,860 NA Shared Wildflower Improvements $255,801 $319,751.25 Grading $456,502 $570,627.50 $570,628 100% Sanitary Sewer $227,849 $284,811.25 $213,608 75%$71,203 25% Watermain $224,251 $280,313.75 $210,235 75%$70,078 25% Streets (includes sidewalks/trails)$727,995 $909,993.75 $163,799 18%$518,696 75% Surface Water Facilities $225,248 $281,560.00 $140,780 50%$70,390 75% Erosion Control $27,970 $34,962.50 $26,222 Sidewalks/Trails NA NA Included in Streets Street Lighting NA NA By Xcel Energy Street Signs and Traffic Control Signs $3,600 $4,500.00 $3,375 Landscaping $105,453 $131,816.25 $98,862 Tree Preservation and Restoration NA NA included in Erosion Control Wetland Mitigation and Buffers NA NA LOC Through VBWD Monuments $4,600 $5,750.00 $4,313 Miscellaneous Facilities NA NA None Record Drawings + PL $2,500 $3,125.00 $2,344 TOTALS $2,005,968 $2,507,460.00 RELEASED AMOUNTS:$728,423 $589,086 $570,628 $36,253 $141,281 $98,862 $484,208 CUMMULATIVE AMOUNTS:$728,423 $1,317,509 $1,888,137 $1,924,390 $2,065,671 $2,164,533 SECURITY AMOUNT REMAINING:$1,779,037 $1,189,951 $619,323 $583,070 $441,789 $342,927 DATE:3/15/2016 8/2/2016 9/6/2016 12/19/2017 6/5/2018 11/20/2018 REDUCTIONS Site Grading Agrmt: Assumed Replaced Never Received: Provided by Wildflower VILLAGE PRESERVE 2ND ADDITION Time of Performance: November 20, 2018 DEVELOPMENT AGREEMENT AMOUNTS CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6 Grading $60,786 $75,983 $75,983 Sanitary Sewer $60,734 $75,918 $56,938 Watermain $120,071 $150,089 $112,567 Storm Sewer (w/pond structures)$41,671 $52,089 $26,044 $13,022 Streets $219,972 $274,965 $137,483 $68,741 Sidewalks/Trails $58,525 $73,156 $54,867 Surface Water Facilities NA NA Street Lighting $36,000 $45,000 $33,750 Street Signs and Traffic Control Signs $2,540 $3,175 $2,381 Private Utilities (electricity, natural gas, telephone, and cable) Landscaping $26,745 $33,431 $25,073 Tree Preservation and Restoration NA NA Wetland Mitigation and Buffers NA NA Monuments $4,500 $5,625 $4,219 Erosion Control $18,525 $23,156 $17,367 Miscellaneous Facilities NA NA Record Drawings $2,500 $3,125 $2,344 TOTALS $652,569 $815,712 RELEASED AMOUNTS:$333,032 $75,983 $81,763 $114,928 $25,073 $184,932 CUMMULATIVE AMOUNTS:$333,032 $409,014 $490,778 $605,706 $630,779 SECURITY AMOUNT REMAINING:$482,681 $406,698 $324,935 $210,007 $184,933 DATE: 2/21/2017 5/16/2017 10/17/2017 12/19/2017 11/20/2018 REDUCTIONS STAFF REPORT DATE: CONSENT November 20, 2018 #11 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 approval by the City Council. ISSUE BEFORE COUNCIL: Should Council approve the requested license? PROPOSAL: The City has received renewal requests from Roxanne Fogard and Michelle Merkling. Appropriate fees have been paid and all required paperwork has been submitted. FISCAL IMPACT: Renewal fee: $50.00 per license OPTIONS: 1) Approve license renewal 2)Deny license renewal RECOMMENDATION: If removed from Consent Agenda: “Motion to approve massage therapy license renewals for Roxanne Fogard and Michelle Merkling.” STAFF REPORT DATE: CONSENT November 20,2018 #12 AGENDA ITEM: Approve 2019 Liquor License Renewals TO: Mayor and City Council SUBMITTED BY: Julie Johnson, City Clerk BACKGROUND: According to State Statute and City Code, each year, all Liquor Licenses must be renewed. All renewals are contingent upon approval by the Washington County Sheriff’s Department and review by the Minnesota Department of Public Safety, Alcohol and Gambling Enforcement. ISSUE BEFORE COUNCIL: Should Council approve the requested license renewals? PROPOSAL: The City has received liquor license renewal applications for 2018 from the following establishments: •Kwik Trip •Lake Elmo Inn •Lake Elmo Inn Event Center •Machine Shed •T&B Given, Inc. (Royal Golf) •Twin Point Tavern •Village Wine and Spirits The appropriate fees have been paid and all required documentation has been provided. Staff is not aware of any violations at any of the aforementioned establishments. FISCAL IMPACT: Renewal fee for each license been received totaling $5,850. OPTIONS: 1) Approve license renewals 2)Deny license renewals RECOMMENDATION: If removed from Consent Agenda: “Motion to approve 2019 Liquor License Renewals as presented.” STAFF REPORT DATE: November 20, 2018 Consent ITEM #13 TO: Honorable Mayor and City Councilmembers FROM: Sue Iverson – Finance Director AGENDA ITEM: 2018 Audit Contract REVIEWED BY: Kristina Handt – City Administrator BACKGROUND: The City last went out for competitive bids for Auditing Services in 2013. Smith Schafer & Associates has been performing the audit of the financial statements for the City of Lake Elmo for 6 years. The initial contracting period was for three years and has extended through 2017. The Government Finance Officers Association (GFOA) recommends that government entities should undertake a full-scale competitive process for the selection of independent auditors at the end of the term of each audit contract. ISSUE BEFORE THE CITY COUNTL: Who should the Council select for auditing services? DISCUSSION: As directed by the City Council on October 2, 2018, an RFP was issued to obtain competitive quotes for audit services. The GFOA best practice on Audit procurement states: 1. “Ideally, auditor independence would be enhanced by a policy requiring that the independent auditor be replaced at the end of the audit contract, as is often the case in the private sector.” 2. “The audit procurement process should be structured so that the principal factor in the selection of an independent auditor is the auditor’s ability to perform a quality audit. In no case should the price be allowed to serve as the sole criterion for the selection of an independent auditor.” 3. “Governmental entities should enter into multiyear agreements of at least five years in duration when obtaining the services of independent auditors. Such multiyear agreements can take a variety of different forms (e.g., a series of single-year contracts), consistent with applicable legal requirement. Such agreements allow for greater continuity and help to minimize the potential for disruption in connection with the independent audit. Multiyear agreements can also help to reduce audit costs by allowing auditors to recover certain “startup” costs over several years, rather than over a single year.” Five firms expressed interest, with four firms providing all the specifications of the bid. All firms were experienced in Governmental Audits and qualified. Of those four, two were reviewed in depth by the Finance Director; Smith Schafer & Associates, Ltd. and Redpath and Company, Ltd. Both firms quoted an annual rate significantly lower than the other 3 firms at $28,075 (Smith Schafer & Associates, Ltd.) and $29,450 (Redpath and Company, Ltd.). The budget for 2019 audit costs was set at $31,946, so both bids would result in a savings in 2019. The price difference between the two bids averages over the five years at about $1,232 a year. While both firms are extremely professional and competent, based on the GFOA recommended practice for audit procurement, Redpath and Company, Ltd., would be the appropriate choice for several reasons: 1. Follows best practices and rotate auditors. 2. Their bid is competitive with the current auditors bid. 3. The bid is within the current budget amount for 2019. 4. Would give a fresh set of eyes to look at the City’s books and financial records. FISCAL IMPACT: The bid for the audit from Redpath and Company, Ltd. is a savings of $2,496 from the 2019 budget of $31,946 or 7.8%. OPTIONS: 1) Approve entering into a contract with Redpath and Company, Ltd. to audit the financial statements for fiscal year ending December 31, 2018 with the option of auditing its financial statements for each of the four subsequent fiscal years. 2) Approve entering into a contract with Smith Schafer & Associates, Ltd. to audit the financial statements for fiscal year ending December 31, 2018 with the option of auditing its financial statements for each of the four subsequent fiscal years. 3) Do not approve entering into an audit contract. RECOMMENDATION: Motion to approve entering into a contract with Redpath and Company, Ltd. to audit the financial statements for fiscal year ending December 31, 2018 with the option of auditing its financial statements for each of the four subsequent fiscal years. ATTACHMENTS: 1) Proposal for Audit Services – Redpath and Company, Ltd. 2) Proposal for Audit Services – Smith Schafer & Associates, Ltd. Dollar Cost Proposal • City of Lake Elmo, Minnesota • December 31, 2018 through 2022 November 2, 2018 55 Fifth Street East, Suite 1400 | Saint Paul, MN 55101 | P: 651.426.7000 | F: 651.426.5004 | www.redpathcpas.com Andy P. Hering, CPA Director ahering@redpathcpas.com 651.407.5877 Submitted By: Peggy A. Moeller, CPA Partner pmoeller@redpathcpas.com 651.407.5832 Redpath and Company | Dollar Cost Proposal I hereby certify that I am entitled to represent Redpath and Company, Ltd. I am empowered to submit the bid, and I am authorized to sign a contract with the City of Lake Elmo. Peggy A. Moeller, Partner Redpath and Company, Ltd. Schedule of Professional Fees and Expenses Total All-Inclusive Maximum Price Year(1)Audit Single Audit(2) Annual Financial Statement Preparation Total 2018(3) 1)$24,950 $3,750 $4,500 $33,200 2019(1)(3)25,700 3,750 4,635 34,085 2020(1)(3)26,500 3,750 4,775 35,025 2021(1)(3)27,300 3,750 4,925 35,975 2022(1)(3)28,150 3,750 5,075 36,975 Total $132,600 $18,750 $23,910 $175,260 (1) Assumes no significant changes in accounting and auditing standards. (2) Quote is for one major program. (3) Required “consent and citation of expertise” or “comfort letters” will be at quoted hourly rates for hours incurred. Schedule of Professional Fees and Expenses For the Audit of the 2018 Financial Statements 2018 Hours Standard Hourly Rate Quoted Hourly Rate Total Director 20 $300 $300 $6,000 Manager 65 215 215 14,105 Senior auditor 70 180 180 12,600 Audit staff 70 125 125 8,750 Other: Support staff 5 90 90 450 Subtotal 230 $41,905 Out-of-pocket expenses/other/rounding Realization adjustment—audit ($16,955) Meals and lodging 0 Transportation 0 Preparation of CAFR 4,500 Quarterly task list meetings 0 Routine phone calls 0 Total all-inclusive maximum price for 2018 audit (not including single audit)$29,450 Single audit (if needed) maximum price for 2018 $3,750 City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Schedule of Professional Fees and Expenses For the Audit of the 2019 - 2022 Financial Statements: Total all-inclusive (not including single audit) maximum price for: Year(1)Audit 2019(1)$30,335 2020(1)$31,275 2021(1)$32,225 2022(1)$33,225 (1) Assumes no significant changes in accounting and auditing standards. Total Single Audit (if needed) maximum price for: Year(1)Single Audit(2) 2019(2)$3,750 2020(2)$3,750 2021(2)$3,750 2022(2)$3,750 (2) Quote is for one major program. Redpath and Company Core Values Caring - Clients and colleagues must know we care—they must feel it. Committed - To the firm, the firm’s vision, clients, and colleagues. Continuously Improving - Always striving to be better, learn more, and offer more. Confident - In ourselves, our colleagues, and our firm. Connected - Awareness of the world and our surroundings, developing relationships, and articulating ideas. Philanthropic Culture Redpath and Company and its employees are committed to giving back. For over ten years our employees have had the option to donate a portion of their salaries to a company-designated charity each year. Each employee’s contribution is then matched by the company. Over the years, we have donated to many organizations from small, local groups to large, nationally recognized organizations. In 2017, Redpath and Company donated $15,000 to Junior Achievement of the Upper Midwest. Since 2011, Redpath and Company has contributed over $170,000 in charitable donations or sponsorships. In addition to financial contributions, Redpath and Company also provides paid time off for employees to volunteer at a favorite charitable organization. Supported Organizations 2018 - TreeHouse 2017 - Junior Achievement of the Upper Midwest 2016 - Second Mile Haiti 2015 - Make A Wish Foundation 2014 - Newtrax 2013 - Make A Wish Foundation 2012 - Minnesotan’s Military Appreciation Fund 2011 - Angel Foundation 2010 - Gillette Children’s Specialty Healthcare 2009 - Twin Cities Habitat for Humanity 2008 - Spare Key 2007 - White Bear Lake Area Emergency Food Shelf ©2018 Redpath and Company, Ltd. All Rights Reserved. Redpath and Company, Ltd is a member firm of the AICPA’s Governmental Audit Quality Center Proposal for: Independent Professional Audit Services • City of Lake Elmo, Minnesota • December 31, 2018 through 2022 November 2, 2018 55 Fifth Street East, Suite 1400 | Saint Paul, MN 55101 | P: 651.426.7000 | F: 651.426.5004 | www.redpathcpas.com Andy P. Hering, CPA Director ahering@redpathcpas.com 651.407.5877 Submitted By: Peggy A. Moeller, CPA Partner pmoeller@redpathcpas.com 651.407.5832 Redpath and Company | Proposal for Independent Professional Audit Services2 3City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Section Page Letter of Transmittal .................................................................................................4 I. Why Redpath and Company? ..............................................................................6 II. Industry Experience ...........................................................................................12 III. Independence ...................................................................................................13 IV. License to Practice in Minnesota ......................................................................14 V. Firm Qualifications and Experience ...................................................................15 VI. Partner, Supervisory, and Staff Qualifications and Experience ........................17 VII. Prior Engagements with the City of Lake Elmo ...............................................24 VIII. Similar Engagements with Other Government Entities ..................................26 IX. Specific Audit Approach ...................................................................................28 X. Identification of Anticipated Potential Audit Problems .......................................34 XI. Report Format ..................................................................................................35 XII. Acknowledgment of Scope/Schedule..............................................................36 Appendix A - Peer Review Report .......................................................................37 Appendix B - Proposer Guaranties and Warranties .............................................38 Appendix C - Redpath Task List ...........................................................................39 Appendix D - Sample Reports..............................................................................40 TA B L E OF C O N T E N T S Redpath and Company | Proposal for Independent Professional Audit Services4 LE T T E R OF T R A N S M I T T A L November 2, 2018 Susan Iverson Finance Director City of Lake Elmo 3880 Laverne Avenue North Suite 100 Lake Elmo, MN 55042 Dear Ms. Iverson: It is our pleasure to present this proposal for the City of Lake Elmo. We are excited about this opportunity and understand your expectations. Redpath and Company has a process of delivering value where your client manager is held accountable to deliver on our promise by spending time with you to identify issues and solutions. Your client manager will meet with you each quarter to discuss City activity and keep you up to date on changing accounting standards. This proactive approach and immersion into your industry differentiates us from other CPA firms. The professionals assigned to lead fieldwork on your audit will be senior level and experienced. Five members of the team proposed for the City of Lake Elmo are current or former certificate reviewers with extensive experience preparing and submitting Comprehensive Annual Financial Reports for the Certificate of Achievement for Excellence in Financial Reporting award program. Our goal is to deliver field results to the audit director within 10 days of fieldwork completion and then deliver the initial audit report draft to you within another 10 days. Director review will be conducted on site during final fieldwork. We understand that the City of Lake Elmo will require flexibility in scheduling the 2018 audit, and that it may be necessary to reschedule fieldwork to accommodate City workload demands. We commit to being flexible with fieldwork dates and will work with the City to determine potential fieldwork dates during a collaborative planning process. Our understanding of the work to be done is outlined in Section XII of this proposal. We commit to perform the work within the time period outlined in the Request for Proposal. The proposal is a firm and irrevocable offer for 60 days. Thank you for your consideration of Redpath and Company. We look forward to working with you. Sincerely, Peggy A. Moeller, CPA Andy P. Hering, CPA Partner Director 5City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Redpath and Company | Proposal for Independent Professional Audit Services6 1. Client Manager and Proven Process Redpath has a process of delivering value—where your client manager is held accountable to deliver on our promise by spending time with you to proactively identify issues and solutions. Your compliance requirements will be met with on-time deliverables, thorough communication, and a solid understanding of your operations and goals. We are a good fit for organizations that appreciate this kind of attention and access to their Redpath team year-round. The Redpath and Company staff assigned to your account will meet monthly to review a “task list” customized to you. The “task list” meetings keep the entire team informed of all compliance deadlines, your expectations, and your needs. Your client manager will then meet with key members of your team approximately once per quarter. These meetings provide an opportunity to identify and discuss financial, accounting, and audit topics that can help with fiscal year planning, annual audit preparation, and improvements to your processes and procedures. Continual interaction with you also provides an opportunity for accounting staff, administrators, and council members to discuss audit and accounting service questions—reducing the potential for unexpected issues or surprises. This high level of attention means you stay informed and up-to-date with changing regulations, accounting standards, and industry conditions that affect your operations. The quoted fees also provide access to your audit team throughout the year. If you have routine questions, assistance is only a phone call or email away—and all inquiries must be returned within 24 hours or sooner. Your client manager is held accountable for: • Delivering on our promise. • Meeting with you at regular intervals. • Making themselves—and staff—available to you throughout the year. • Understanding your industry, operations, and goals. • Active management, monitoring, and timely delivery of service. • Scheduling all compliance and planning meetings. • Providing continual guidance regarding new standards and regulations. 2. Experienced Staff With turnover that is lower than industry averages, you can be sure that the senior staff assigned to your audit are experienced and part of our dedicated government industry practice area. They are expected to understand your organization and build relationships with your team to help ensure a smooth and efficient audit process year after year. This enables your team to focus on core job functions and priorities versus educating new audit staff every year regarding your organization’s unique processes, procedures, and goals. Assigned staff members are also experts in their service areas, rather than generalists—unlike some firms that require their employees to have broad expertise so they can be reassigned to different practice areas as necessary. Your engagement team will also be led by senior staff members including a manager with 5 years of experience and a director with 18 years of experience, providing your audit review. Your CAFR preparation will also be handled as diligently as your audit. Redpath and Company has extensive experience preparing the CAFR, and over 85% of our clients take advantage of our preparation services each year. I. W H Y R E D P A T H AN D C O M P A N Y ? City of Lake Elmo, Minnesota | December 31, 2018 through 2022 7 Industry Practice Groups Association Involvement Thought Leadership Being Connected 1 Immersion in the Ecosystem Partnership That Works Feedback Welcome Anytime Exceeding Your Expectations 5 Evaluating the Relationship Client Selection Accounts as Trusted Advisors Long-Term Relationship 2 Finding the Right Fit CLIENT MANAGEMENT Monthly Task List Moving Beyond Compliance 4 Delivering Proactive Services Listening Understanding Your Business Helping You Succeed 3 Identifying Client Goals Client Manager Responsible For Delivering on Our Promise Relationship Management Creates a Professional and Personal Relationship by gaining in-depth knowledge of the client’s industry Services Collaborates with the Client to Determine Needs, Solutions, and Actively Manages the Services Provided The Client Feels the Difference Redpath and Company | Proposal for Independent Professional Audit Services8 I. W H Y R E D P A T H AN D C O M P A N Y ? 3. 10 + 10 Goal Your audit engagement will come with a 10 + 10 Goal, whereby field results are delivered to the audit director within 10 days of fieldwork completion. The draft report is delivered to you within another 10 days. Within the time period of the 10 + 10 Goal, a second partner review will be conducted. The 10 + 10 Goal means your audit due date will be achieved as long as all information is provided as requested. The 10 + 10 promise: • Holds your Redpath and Company engagement team accountable for running an efficient audit. • Sets expectations for both organizations to collaborate and deliver documents as requested. • Ensures on-time delivery of the audit and report. 4. Certificate of Achievement for Excellence in Financial Reporting Redpath and Company staff members have a deep understanding of what it takes to be recognized in the Certificate of Achievement for Excellence in Financial Reporting program: 1) we audit 16 entities whose CAFRs receive the Certificate of Achievement for Excellence in Financial Reporting each year, and 2) we have 12 staff members that are current or former reviewers in the CAFR Program. This includes five members of the proposed team for the City of Lake Elmo audit: Peggy Moeller, Andy Hering, David Jackson, Melissa Johnson, and Lyndsey Peck. 5. Audit Modernization Initiatives Continuous Audit Continuous audit is an audit methodology that places more reliance on internal controls and testing of inputs, rather than testing of outputs. It provides a different level of assurance on interim financial reporting. Under this method, many of the transactions which would typically be tested during final fieldwork (three months after year-end) would instead be tested closer to when they actually occurred. This will provide organizations an opportunity to address any areas of concern sooner versus looking back at transactions that may have occurred over a year prior to the audit. We have a contractual relationship with the firm Account-ability Plus, LLC to assist with refining our audit process and approach. Account-ability Plus, LLC is run by Al Anderson, CPA, who is a former member of the AICPA’s Assurance Services Executive Committee. We are currently working with Mr. Anderson to develop and pilot a continuous audit approach. AICPA Audit Strategy Initiative The AICPA has several initiatives to improve audit quality, including developing software for employee benefit plan audits and other services. Redpath and Company is a subcontractor providing beta-testing services. Data Analytics While the “audit of the future” is yet to be defined, it’s certain to include more real-time auditing and a greater use of data analytics. Redpath and Company has been using data mining software for several years. The information gathered through the software provides more powerful insights and recommendations for organizational improvement opportunities. Trends, patterns, outliers, and correlations are more easily identified and detected for more efficient and accurate audit results. Redpath and Company is also a member firm in the A & A Leadership Leagues. Member firms are committed to audit excellence and are currently developing data analytics for use in future audits. City of Lake Elmo, Minnesota | December 31, 2018 through 2022 9 Firm Overview, Size, and Structure Redpath and Company is a full-service public accounting firm helping individuals and organizations— including local governments, not-for-profits, and privately-held businesses—make better and more informed decisions that contribute to their financial well-being. The firm ranks as the largest certified public accounting firm in St. Paul, Minnesota and one of the largest in the Twin Cities metro area. Year founded: 1971 International Affiliation: HLB International Headquarters: St. Paul, Minnesota 2nd Office: White Bear Lake, Minnesota Ownership: 100% ESOP owned Management model: EOS (“Traction”) Total employees: 170 Total tax professionals: 68 Total audit and accounting professionals: 74 Administrative/support staff: 28 Total partners: 16 Top industries served: Government, Not-For-Profit, Manufacturing and Distribution, Construction, Real Estate and Engineering, ESOP, Technology Redpath and Company, Ltd is a member firm of the AICPA’s Governmental Audit Quality Center Specialized Services • Audit and Assurance Services • Financial Statement Audit • Federal Single Compliance Audit • GASB Implementation • CAFR Preparation Assistance, Including Government-Wide Conversion • Debt Services Studies • Utility Rate Studies • Cost Allocation Studies • Sales and Use Tax Compliance • Payroll Services • Internal Control Studies • Forensic Accounting Services • Employee Benefits • Agreed-Upon Procedures Entities Served • Cities / Towns • Counties • School Districts / Charter Schools • HRAs / EDAs • Fire Relief Associations • Watersheds / Special Districts • Tribal Government Similar Clients (not all-inclusive) • Blaine • Chanhassen • Lino Lakes • Oakdale • Waconia Redpath and Company | Proposal for Independent Professional Audit Services10 Why We Do What We Do We care about your success, are fun to work with, and love to bring value. We have the right systems, resources, and talent in place to exceed your expectations: • Proactive. Attentive client managers—backed by a system followed by all—are held accountable for delivery on our promise. • Innovative. Practical and efficient approach to delivering solutions instead of a larger firm’s bureaucracy and protocol. • Value-Driven Services. Focused on delivering value by solving, not selling. I. W H Y R E D P A T H AN D C O M P A N Y ? City of Lake Elmo, Minnesota | December 31, 2018 through 2022 11 Redpath and Company | Proposal for Independent Professional Audit Services12 II . I N D U S T R Y E X P E R I E N C E Industry Involvement We train our staff to be thinkers, not robots. Thinkers understand government finance and apply their understanding to determine the right procedures and services for clients. There are many good accountants that follow governmental accounting standards, but in today’s world, governmental services should be treated as more than a commodity. Our professionals participate in local, regional, and national associations to be proactive in understanding the issues this industry faces. • Minnesota Government Finance Officers Association • 2016 Thomas J. Moran Award (David Mol and Peggy Moeller) • GFOA Certificate Review Program • AICPA Governmental Audit Quality Center • AICPA Single Audit Resource Center • Minnesota Association of County Officers • Minnesota Association of County Auditors, Treasurers, and Financial Officers AICPA Governmental Audit Quality Center The Center is a national community of CPA firms that demonstrate a commitment to governmental audit quality and raise awareness about the importance of governmental audits. The Center provides members with best practices, guidelines, and tools CPAs need to perform quality governmental audits and better serve their clients. Members of the Center demonstrate their commitment by voluntarily agreeing to adhere to Center membership requirements, including designating an officer responsible for its governmental audit practice, establishing quality control programs, performing annual internal inspection procedures, and making the firm’s peer review report publicly available. GFOA’s Certificate of Excellence Program Six staff members currently participate in the GFOA’s certificate review program. Additionally, six staff members are former reviewers. Certificate reviewers perform reviews of four to six CAFRs each year from governmental audits throughout the United States. David Mol and Peggy Moeller have also provided seminars on the certificate program. Of the December 31, 2016 CAFRs submitted with Redpath and Company assistance, 100% of them received the award. Minnesota GFOA Six staff members are members of MNGFOA. Our participation includes committee membership, attendance at monthly meetings and annual conferences, seminar presentations, and governmental accounting training. David Mol and Peggy Moeller have taught the Advanced Accounting class for the past several years and were recipients of the Thomas J. Moran Award in September 2016. David also presents a GASB update at the annual conference. Minnesota Society of CPAs Our participation includes staff members active in the MNCPA. 13City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Statement of Independence We are independent with respect to the City of Lake Elmo, the City’s agencies, and the City’s component units, as defined by generally accepted auditing standards and Government Auditing Standards. We have no knowledge of any business, investment, or personal relationships with the City, their officials, appointed employees or department heads, and personnel of our firm that would impair our independence or would cause a conflict of interest. Redpath and Company complies with the requirements of the AICPA’s peer review program. A copy of our most recent external quality control review report, on which we received an unqualified opinion, is included in Appendix A. This review included specific government engagements. II I . I N D E P E N D E N C E Redpath and Company | Proposal for Independent Professional Audit Services14 Firm License and Partner Certificates Our firm is licensed and in good standing with the State of Minnesota. Our annual license is in effect from January 1, 2018 to December 31, 2018. We renew the license annually. Our license number is 359. The partners of our firm hold the following certificates issued by the Minnesota State Board of Accountancy: Name Certificate No. James S. Redpath 5846 David J. Mol 9129 D. Kenneth George 7601 Norman C. Longsdorf 8423 Steven J. Wahlin 8160 Mark C. Gibbs 11326 Thomas W. Hodnefield 12890 Paul W. Longsdorf 12957 Peggy A. Moeller 5515 Brian J. Sweeney 19549 Gloria J. McDonnell 18891 Joel C. Newby 18904 Sue M. Weiskopf-Larson 11565 Megan K. Johnson 19180 John R. Kammerer 23585 Jill M. Noack 22558 All key employees assigned to the audit (managers, senior managers and directors) are properly licensed to practice in Minnesota. IV . L I C E N S E TO P R A C T I C E IN M I N N E S O T A 15City of Lake Elmo, Minnesota | December 31, 2018 through 2022 V. F I R M Q U A L I F I C A T I O N S AN D E X P E R I E N C E About Redpath and Company, Ltd. Redpath and Company is a leading accounting firm providing proactive, innovative, and value-driven CPA services. We serve government entities, closely-held businesses, and not-for-profit organizations in the areas of audit and attest, tax, benefits and compensation administration, international consulting, mergers and acquisitions, succession and estate planning, and valuation services. Our offices are located in White Bear Lake, Minnesota and St. Paul, Minnesota (headquarters) and have 170 employees. The work on this engagement will be performed by the St. Paul office. In addition to government expertise, we have a full range of services at your disposal including: • Sales tax • Employee benefit plans • Payroll • Regulatory audit assistance • Temporary outsourcing and troubleshooting • Internal control • Assistance with the implementation of new accounting standards With over a century of accumulated experience at the senior professional level, we have a pool of knowledgeable government auditors who understand this sector’s audit process. In addition to the leadership identified below, there are approximately 12 staff level professionals dedicated to this industry. Your engagement will be consistently staffed with qualified experts. Name Title Government Experience David J. Mol, CPA Partner 38 Years Peggy A. Moeller, CPA Partner 35 Years Andrew P. Hering, CPA Director 18 Years Cathy A. Lydon, CPA Director 13 Years Jeffrey L. Wilson, CPA Senior Manager 34 Years Jackie M. Kotilinek, CPA Senior Manager 10 Years Our firm’s professional demographic is as follows: Classification Total Staff Government Services Staff Partners 16 2 Directors 11 2 Senior Managers 26 2 Managers 16 3 Professional staff 73 6 Other staff 28 2 Total 170 17 Redpath and Company | Proposal for Independent Professional Audit Services16 Redpath and Company’s quality control is subject to peer review under the AICPA’s Private Companies Practice Section. We are pleased to continue our history of receiving unqualified opinions on our peer review reports. Our most recent peer review report is included as Appendix A. This review includes specific government engagements. Redpath and Company has not had any federal or state reviews of its audits or disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations. V. F I R M Q U A L I F I C A T I O N S AN D E X P E R I E N C E 17City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Partner, Supervisory, and Staff Qualifications and Experience Redpath and Company has been dedicated to the government industry since our inception in 1971. We have extensive background and success in working with cities, housing authorities, relief associations, charter schools and other government entities. With more than 40 years of experience servicing governmental entities, Redpath and Company is well-positioned and eager to deliver value to the City of Lake Elmo. Team Assignment We believe in developing long-term relationships and strive to maintain consistency in key assigned staff assigned from year-to-year. As part of our personal brand of service, you will deal one-on-one with senior Redpath and Company staff. Your engagement will be staffed by the following Redpath and Company senior professionals: Peggy A. Moeller, CPA – Partner As the firm’s Government Audit Service Area leader, Peggy is available for consultation on accounting and/ or auditing issues that may arise. Peggy will be the assigned Client Service Manager. Andy P. Hering, CPA – Director Participates in planning meeting(s) with City staff. Assists field auditors with complex technical issues, final review and signing of reports, exit and final report presentation to the City Council. David D. Jackson, CPA – Manager Participates in planning meeting(s) with City staff. David is responsible for coordinating and performing fieldwork, supervision of audit staff, and reviewing audit work. Melissa F. Johnson, CPA, MBA – Manager Melissa is responsible for coordinating and performing fieldwork on the Federal Single Audit. Melissa holds the AICPA Advanced Single Audit Certificate. Lyndsey K. Peck, CPA – Senior Lyndsey is responsible for performing fieldwork. In addition to the above staff, we anticipate assigning one other staff auditor (to be determined once scheduling of audit confirmed) on a full-time basis. VI . T E A M Q U A L I F I C A T I O N S AN D E X P E R I E N C E Redpath and Company | Proposal for Independent Professional Audit Services18 Dedicated Client Manager The City of Lake Elmo can expect the following from their Redpath and Company client service manager: • Understanding of your organization. • Active management, monitoring, and timely delivery of services provided. • Deep knowledge of all Redpath and Company services and products to recommend solutions as ad hoc needs arise. • Coordination of a year-end planning meeting. • Quarterly meetings to discuss City activities and GASB standard changes. Equal employment opportunities and the value of diversity is an essential part of our business practices and principles. This commitment to equal employment opportunities extends to the assignment of staff to engagements. Redpath and Company is 100-percent employee-owned. The employee owners in our firm have a financial interest in the Company and therefore, are heavily invested in delivering a high level of service that is aligned with our core values. Women and people of color make up sixty percent of our employee owners. All partners and professional staff of our firm are required to attain a minimum of 40 hours per year of continuing professional education (CPE). Included in the 40 hour per year requirement, partners and staff who work in the governmental area are required to have at least 24 hours of CPE directly related to the governmental environment and governmental auditing in a two-year period, in accordance with government audit standards. A summary of specialized training in governmental auditing and accounting for assigned personnel is as follows: Hours of qualified “Yellow Book” CPE in GOV/ NFP auditing and accounting over the past three years ending June 30, Personnel Position 2016 2017 2018 Total Peggy A. Moeller, CPA Partner 71 55 49 175 Andy P. Hering, CPA Director 37 29 35 101 David D. Jackson, CPA Manager 41 13 14 68 Melissa F. Johnson, CPA Manager 44 36 23 103 Lyndsey K. Peck, CPA Senior 38 20 17 75 VI . T E A M Q U A L I F I C A T I O N S A N D E X P E R I E N C E City of Lake Elmo, Minnesota | December 31, 2018 through 2022 19 Peggy A. Moeller, CPA Audit Partner MN Certificate Number: 5515 Peggy Moeller leads the Government/Not-for-Profit service area at Redpath and Company. She specializes in audit and management advisory services for local governments, assisting organizations with quality financial reporting and special projects such as debt studies, cash flow projections, and utility rate studies. She is a national reviewer of the Government Finance Officers Association’s Certificate of Achievement in Financial Reporting Program and is a frequent presenter. Peggy has over thirty years of governmental audit experience. Governments audited for the year ended December 31, 2017 include the Cities of Blaine, Oakdale, Andover, St. Anthony Village and Columbus, Metropolitan Emergency Services Board, Metropolitan Mosquito Control District, Minnesota Valley Transit Authority, St. Cloud Housing and Redevelopment Authority and a number of Watershed Districts, Relief Associations and Cable Commissions. Peggy is a holder of the Intermediate Single Audit Certificate issued by the AICPA. The Intermediate Single Audit Certificate tests the auditor’s ability to plan, perform, and evaluate single audits in accordance with the latest requirements of the Uniform Guidance. Relevant continuing professional education includes AICPA’s Annual Governmental Auditing and Accounting Conference and the GFOA’s Annual Governmental GAAP Update. Education • University of Minnesota, B.A., Accounting Recognition • 2016 Thomas J. Moran Award (MNGFOA) Professional Activities • American Institute of Certified Public Accountants • Minnesota Society of Certified Public Accountants • Minnesota Government Finance Officers Association (MNGFOA) • Minnesota Government Finance Officers Association (MNGFOA) Conference Committee ▪National Reviewer: Certificate of Achievement in Financial Reporting Program Presentations / Training • “Advanced Governmental Accounting,” MNGFOA, 2015–2018 • “Certificate of Achievement for Excellence in Financial Reporting Update,” MNGFOA, 1998–2013 Redpath and Company | Proposal for Independent Professional Audit Services20 Andy P. Hering, CPA Audit Director MN Certificate Number: 21932 Andy is a Director at Redpath and Company. Andy specializes in governmental and not-for-profit organizations, including cities, charter schools, special districts, tribal governments, and housing authorities. Andy oversees all of our firm’s charter school audits and has been with Redpath and Company since 2000. In addition to performing audits, Andy trains staff to ensure they also understand the nuances of local governments and not-for-profit, as well as the corresponding accounting standards. Andy is a holder of the Intermediate Single Audit Certificate issued by the AICPA. The Intermediate Single Audit Certificate tests the auditor’s ability to plan, perform, and evaluate single audits in accordance with the latest requirements of the Uniform Guidance. Relevant continuing professional education includes the GFOA’s Annual Governmental GAAP Update. Education • University of Minnesota, B.S., Accounting Professional Activities • American Institute of Certified Public Accountants • Minnesota Society of Certified Public Accountants • Minnesota Government Finance Officers Association (MNGFOA) • Former GFOA Special Reviewer Committee Member for the Certificate Program VI . T E A M Q U A L I F I C A T I O N S A N D E X P E R I E N C E City of Lake Elmo, Minnesota | December 31, 2018 through 2022 21 David D. Jackson, CPA Manager MN Certificate Number: 28867 David is a manager in the governmental and not-for-profit service area at Redpath and Company and assists clients with audited and reviewed financial statements and accounting services. He works with a variety of governmental and not-for-profit entities including cities, special districts, charter schools, housing authorities and not-for-profit organizations. David has been with Redpath and Company since 2013. Relevant continuing professional education includes the GFOA Annual Governmental GAAP Update and the AICPA Governmental Accounting and Auditing Update Conference. Education • University of Wisconsin - Eau Claire, B.B.A., Accounting Professional Activities • American Institute of Certified Public Accountants • Minnesota Society of Certified Public Accountants • Minnesota Government Finance Officers Association (MNGFOA) • Minnesota Association of County Auditors, Treasurers, and Finance Officers (MACATFO) • Minnesota Association of County Officers (MACO) ▪National Reviewer: Certificate of Achievement in Financial Reporting Program Redpath and Company | Proposal for Independent Professional Audit Services22 VI . T E A M Q U A L I F I C A T I O N S A N D E X P E R I E N C E Melissa F. Johnson, CPA, MBA Manager MN Certificate Number: 22308 Melissa Johnson, CPA, MBA, is a manager at Redpath and Company, where she specializes in the government/not-for-profit audit and accounting services area. Melissa has over 15 years of experience working with federal awards for governmental, not-for-profit, and commercial organizations. Prior to joining the Redpath and Company team, Melissa worked with the U.S. Defense Contract Audit Agency providing contract audit services to various governmental agencies. Melissa has served as a committee member for the National Seminar for Government Contracts and has provided training on federal compliance requirements, application of cost accounting standards, and internal control requirements necessary to administer federal contracts. Melissa is a holder of the Advanced Single Audit Certificate issued by the AICPA. The Advanced Single Audit Certificate requires the ability to evaluate and analyze the core concepts related to client acceptance, engagement planning, engagement analysis, concluding an engagement, and guiding principles for single audits at an advanced level as outlined in the AICPA Competency Framework: Governmental Auditing. Additionally, she has also provided single audit training at the MNCPA Audits of Local Governments Conference. Relevant continuing professional education includes the GFOA Annual Governmental GAAP Update and AICPA’s Governmental and Not-For-Profit Training Program. Education Concordia College, B.A., Accounting Keller Graduate School of Management, M.B.A. Professional Activities • American Institute of Certified Public Accountants • Minnesota Society of Certified Public Accountants • Minnesota Government Finance Officers Association (MNGFOA) ▪Former National Reviewer: Certificate of Achievement in Financial Reporting Program City of Lake Elmo, Minnesota | December 31, 2018 through 2022 23 Lyndsey K. Peck, CPA Senior MN Certificate Number: 30168 Lyndsey is a senior auditor in the governmental service area at Redpath and Company. She assists clients with audited and reviewed financial statements in addition to providing accounting services. Lyndsey works with a variety of governmental entities including cities, special districts and housing authorities. She has been with Redpath and Company since 2014. Relevant continuing professional education includes the GFOA Annual Governmental GAAP Update and Reality Based Learning—provided by a former member of the Auditing Standards Board and NASBA approved continuing professional education courses. Education • University of Wisconsin - River Falls, B.S., Accounting Professional Activities • American Institute of Certified Public Accountants • Minnesota Society of Certified Public Accountants ▪National Reviewer: Certificate of Achievement in Financial Reporting Program Redpath and Company | Proposal for Independent Professional Audit Services24 VI I . P R I O R E N G A G E M E N T S W I T H TH E C I T Y Prior Engagements With the City of Lake Elmo During the previous five years, we have not provided audit or non-audit services to the City of Lake Elmo. Redpath and Company did provide audit and financial statement preparation services to the City of Lake Elmo in prior years. The relationship ended with the completion of the December 31, 2000 audit. 25City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Redpath and Company | Proposal for Independent Professional Audit Services26 VI I I . S I M I L A R E N G A G E M E N T S Similar Engagements With Other Government Entities Our firm has been involved in providing audit and other services to governmental clients since 1971. The following is a list of Minnesota governmental entities which we have audited in the past year: Local Governments Andover1 Blaine1 Cambridge1 Champlin1 Chanhassen1 Columbia Heights1 Columbus Fridley1,2 Lino Lakes1 Grand Rapids1 Oakdale1 Oak Park Heights Pine City Roseville1 St. Anthony Village2 St. Louis Park1, 2 Waconia1 Charter Schools Best Academy Dugsi Academy Duluth Public Schools Academy2 Harvest Preparatory School Hiawatha Academies2 High School for Recording Arts Parnassus Preparatory School Partnership Academy Rochester Math & Science Rochester STEM Academy Seven Hills Preparatory Academy Spectrum High School The Mastery School Urban Academy Specialty North Suburban Hospital District Metropolitan Emergency Services Board Minnesota Valley Transit Authority1,2 Metropolitan Mosquito Control District Three Rivers Park District1,2 1 GFOA Certificate Holder 2 Required a federal single audit for 2017 Authorities Cambridge HRA Columbia Heights EDA/HRA Fridley HRA St. Cloud HRA2 Washington County CDA1,2 St. Louis Park Housing Authority2 Fire Relief Brooklyn Park Chanhassen Cohasset Grand Rapids Lake Elmo Little Canada Lower St. Croix Valley Maplewood Newport St. Anthony White Bear Lake Woodbury Joint Ventures Central St. Croix Valley Joint Cable Communications Commission Quad Cities Cable Communication Commission Anoka-Champlin Fire Department Watersheds / Water Management Carnelian-Marine-St. Croix Lower Minnesota River Minnehaha Creek Mississippi Water Management Organization Nine Mile Creek Ramsey-Washington Metro Rice Creek Riley Purgatory Bluff Creek Valley Branch City of Lake Elmo, Minnesota | December 31, 2018 through 2022 27 References We encourage you to contact the references below to inquire of their experience working with us. Entity Contact Services Provided for the year ended: December 31, 2017 Budgeted Hours City of Oakdale Engagement Partner: Peggy A. Moeller Suzzane Warren 651-730-2714 • Financial audit • State legal compliance audit • GASB 68 (pension) workpaper assistance • CAFR preparation • CAFR submitted to GFOA 412 City of Blaine Engagement Partner: Peggy A. Moeller Joe Huss 763-717-2677 • Financial audit • State legal compliance audit • GASB 68 (pension) workpaper assistance • CAFR submitted to GFOA 356 City of Lino Lakes Engagement Director: Andy P. Hering Sarah Cotton 651-982-2410 • Financial audit • State legal compliance audit • GASB 68 (pension) workpaper assistance • CAFR preparation • CAFR submitted to GFOA 338 City of Chanhassen Engagement Partner: David J. Mol Greg Sticha 952-227-1149 • Financial audit • State legal compliance audit • GASB 68 (pension) workpaper assistance • CAFR preparation • CAFR submitted to GFOA 336 City of Waconia Engagement Partner: David J. Mol Engagement Director: Andy P. Hering Nicole Meyer 952-442-3108 • Financial audit • State legal compliance audit • GASB 68 (pension) workpaper assistance • CAFR preparation • CAFR submitted to GFOA 315 Redpath and Company | Proposal for Independent Professional Audit Services28 IX . S P E C I F I C A U D I T A P P R O A C H Audit Approach Overview Every audit requires individual attention. Whether we are auditing the entity two years in a row, or two different entities of similar size, each audit receives individual attention and a customized approach. This approach is necessary to deliver a quality audit and to provide assurance. Auditing should never be mechanical using the same procedures and processes over and over again. Listed below are some of the steps we take to insure every audit receives customized attention: • Encourage staff to think “outside-of-the-box.” • Evaluate risk of a material misstatement by conducting interviews with staff inside and outside the Finance Department. This approach gives us a more thorough understanding of what’s happening throughout the organization. • Use audit programs as a menu of potential procedures, not as a checklist. We evaluate risk of misstatements first and then identify and perform procedures that respond to the identified risk. • Focus on transactions and use data mining software for assistance to uncover red flags in payroll and disbursements. • Employ sampling methods in areas where it is deemed efficient and effective. Client/Audit Firm Relationship Our firm approaches each audit with the understanding that we work for the City Council and that we work with the City staff to obtain the necessary information to conduct the audit. Our working relationship with the City Council will include the following: • Issuance of annual engagement letter (contract). The engagement letter addresses auditor responsibilities, management’s responsibilities, scope of services, and fees. • Available throughout the year. Audit staff is available throughout the audit cycle and throughout the entire year to respond to inquiries. • Presentation of audit results. This presentation includes a review of all reports issued. Our working relationship with the City staff will include the following: • Internal task list meetings. The Redpath and Company team assigned to the audit meets monthly to ensure client needs are met. Our firm prepares a “task list” customized for each client (see Appendix C). • Task list meetings with client staff. The client manager coordinates periodic meetings with the City Finance Director. The purpose of these meetings is to identify and discuss financial, accounting and audit topics. New GASB Statements are discussed well in advance of implementation dates and training on new standards is built into the client manager meetings. These meetings are generally held quarterly. • Audit planning meeting. Prior to year end, the client manager, director, and manager meet with the City staff to discuss the upcoming audit. This meeting includes establishing a timeline for each audit segment. Our firm uses Microsoft Office and uses secure email and/or a secure Client Portal for transmitting files. City of Lake Elmo, Minnesota | December 31, 2018 through 2022 29 Audit Effectiveness and Efficiency Redpath and Company is committed to continuously improving the effectiveness and efficiency of our audits. This commitment is evidenced by the following: • Use of Citrix™ servers enabling staff to connect to our main server from any location. • Employment of data mining techniques to identify unusual transactions, search for duplicate payments, sort financial data for audit test purposes, and analyze payroll and vendor payments. • Enhanced use of trial balance and document management software to more efficiently and easily link trial balance data to create electronic workpapers. • Empower our employees with information to provide better client service through a Client Relationship Management (CRM) system. • Client portal system facilitating the secure and efficient exchange of documents. • Contract relationship with the firm Account-ability Plus, LLC to assist with refining our audit process and approach. Account-ability Plus, LLC is headed-up by Al Anderson, CPA, who is a former member of the AICPA’s Assurance Services Executive Committee. Transition Process and Schedules Needed for Audit Please be assured that if selected, the transition from your current auditor will be handled efficiently and smoothly by Redpath and Company staff. One of our goals during the transition process is to educate our team about your organization and the engagement so we can hit the ground running and make you feel like we’ve been working on the account for years. We have a transition plan to make the process seamless. This process includes the following: • Upon your lead and notification to the former audit firm of the change, we schedule a site visit with the former auditor to review workpapers, applicable reports and documents. • We will provide you with a detailed list of information needed for the audit. We will use reports your system currently provides and provide additional templates as needed. • Our staff will gain knowledge about your organization and operation by reviewing budget documents, prior financial reports and other documents you deem important. Service Approach We take the approach that we provide a service, not a commodity. We will look into details. Our approach is a good fit for organizations that expect high quality services. Our clients value our responsiveness to their needs and the assurance provided by our services. Please feel free to contact our client references who can comment on their experience with Redpath and Company. Process and Efficiency Improvements Through Technology SuraLink File Portal In order to provide a more efficient and secure document exchange while continuing to promote a paperless work environment, Redpath and Company recently upgraded to the SuraLink file portal. SuraLink provides a more transparent way to request and receive information, is updated in real-time, and adds an additional level of clarity and organization of information. SuraLink allows for: • A single source of requests to replace multiple email trails. • Client access to deliverables 24/7. • More visibility of what information is requested and what is provided by both firm and client perspectives. • More accountability on both sides, which includes an audit trail of exchanges. • More monitoring capabilities on the status of engagements through the use of dashboards and reporting. Redpath and Company | Proposal for Independent Professional Audit Services30 IX . S P E C I F I C A U D I T A P P R O A C H Data Mining The use of data-mining software allows for analysis of 100% of a population of a class of transactions— rather than selection of a small sample of the population. Examples include the following: 1. Check Register Data mining allows for an analysis of the entire year’s check register that includes sorting checks by vendor, gaps in check numbers, identification of new vendors, and checks dated on non-business days, or other analysis based on identified risks. 2. Journal Entries Posting a journal entry is a common method used to cover up an error or fraud. Data mining allows for the analysis of entries that have different attributes, such as 1) a “credit” or reduction to cash, 2) report on the number and dollar amount of entries posted to each financial statement line item, 3) journal entries posted during non-business hours, and 4) entries posted by person. The information gathered through the software also provides for more powerful insights and recommendations for business improvement opportunities. Trends, patterns, outliers, and correlations are more easily identified and detected for more efficient and accurate audit outcomes. Audit Timeline We strive to build efficiency in our execution and timing of our audit engagements. We commit to perform the work within the time period outlined in the Request for Proposal. We will work with the City to determine a time table for the City audit and we anticipate the following segments: Segment Level of Staff General Audit Hours 1. Audit planning and customize audit programs to meet the particular needs of the engagement.All Levels 12 2. Interim fieldwork, scheduling of appropriate support personnel and internal control evaluation, inventory observation, walkthroughs and risk assessment and legal compliance. Manager, Senior, and Staff 24 3. Final fieldwork (including substantial review, and preparation of financial statements and draft audit reports).All Levels 146 4. Final reviews, edits of reports and exit conference (to review drafts of all reports). Presentation to City Council.All Levels 48 Specifically, the engagement, for the City is anticipated to have the following timeline: November 2018: Execute engagement letter. The schedule for interim and final fieldwork will be agreed upon by Redpath and Company and the City. Detail of the proposed segments are as follows: November 2018: Entrance conference with Finance Director. City of Lake Elmo, Minnesota | December 31, 2018 through 2022 31 December 2018: Audit planning complete – Includes the refining of audit programs to meet the particular needs of the engagement, conducting internal planning meetings to review audit strategy, and scheduling of appropriate engagement personnel. A list of schedules to be prepared by the City will be provided by the audit team. January 2019: Receive preliminary City trial balance by January 15, 2019 and prepare audit lead schedules – Redpath and Company software enables the assigning of each account on the trial balance to a specific line item in the financial statements. Once all accounts have been assigned, the audit lead schedules and fund financial statements can be produced upon receiving a final trial balance. Our desire is to receive the final trial balance one week prior to the start of fieldwork. Preliminary fieldwork complete by January 31, 2019 – Includes audit tasks which will alleviate final fieldwork requirements, SAS 104-111 audit procedures such as client interviews, internal control testing and walkthroughs, and legal compliance testing. Expected to be one day utilizing three Redpath personnel. April / May 2019: Final fieldwork anticipated to be the week of May 6, 2019 – Expected to be four to five days on site in duration utilizing three to four Redpath personnel. Final workpaper review and report preparation – Our approach is to have substantially all Director reviews completed by the end of fieldwork. Our goal is to have the audit to the Director for final review within 10 days of final fieldwork and schedule the exit conference within another 10 days. A second partner review will also occur prior to the exit conference. May / June 2019: Exit conference – Draft audit report presentation to the Finance Director. (Typically a draft audit report and any audit findings are reviewed and discussed with appropriate staff prior to this meeting.) Presentation of audit report: June 4, 2019 – Presentation of the final audit report by the audit Director to the City Council. Audit Areas of Emphasis For many years we have used a risk-based approach which more recently has been mandated by auditing standards. Using this approach we develop a preliminary audit strategy based on risk and continually evaluate the approach throughout the engagement. This process results in a dynamic engagement rather than a canned approach. Areas of emphasis may change from year-to-year and some procedures are altered every year to guard against complacency. Understanding of Your Internal Control We will request copies of policies and procedures manuals. We will also interview the appropriate staff to gain a further understanding of the design of the internal control structure. Redpath and Company | Proposal for Independent Professional Audit Services32 IX . S P E C I F I C A U D I T A P P R O A C H Sampling We will use sampling methods in any area where it is deemed efficient and effective. Typically, we use sampling for disbursements (check, ACH, credit card), payables, and other areas. We follow the guidance set by AICPA standards when determining our sample size. Analytical Procedures Our firm uses analytical procedures in the planning and final review stages as required by audit standards. We also use analytical procedures as substantive testing in areas which we believe such procedures are effective. Laws and Regulations Laws and regulations that are subject to audit test include applicable statutes as compiled by the Office of the State Auditor in the Minnesota Legal Compliance Audit Guide. Communication During the planning stage, we establish two-way communication with management and those charged with governance. We will ask if you have any preferred method of communication, concerns or requests. All draft audit reports will be reviewed with you prior to issuance. The exit conference provides a forum to discuss issues raised during the engagement and to obtain an understanding of all audit reports prior to issuance. Proactive Service We strive to build efficiency in our execution and timing of our audit engagements. Our goal is to deliver field results to the audit Director within 10 days of fieldwork completion. The audit Director will then deliver the initial audit draft to you after another 10 days. We avoid delays and last minute changes by conducting a thorough review in the field. Additionally, we will complete as much work as possible on an interim basis. City of Lake Elmo, Minnesota | December 31, 2018 through 2022 33 Redpath and Company | Proposal for Independent Professional Audit Services34 X. I D E N T I F I C A T I O N OF A U D I T P R O B L E M S Identification of Anticipated Potential Audit Problems We are not aware of any specific anticipated problems. However, should any situations arise during the course of our audit, our approach to resolving these problems generally is as follows: Situation is defined by audit team. Is inquiry with client likely to resolve problem? Audit partner is advised of facts and circumstances. Research and audit team meeting will determine if client’s position is acceptable. Does acceptance of client position resolve conflict? Client is advised of audit position and the matter is discussed. If situation requires additional work by client staff, audit staff, or other resources, a plan of action is agreed upon and schedules are adjusted as required. Client is advised of audit acceptance. Situation is resolved. Situation is discussed with appropriate level of client staff. Is problem resolved? NO NO YES YES YES NO 35City of Lake Elmo, Minnesota | December 31, 2018 through 2022 XI . R E P O R T F O R M A T Required Report Formats Required report formats (for such reports as audit opinion, internal control, etc.) regarding content is dictated by professional standards. Our management letter will include the required communication to those charged with governance (significant accounting policies, significant estimates, significant audit adjustments—if any, etc.). See Appendix D for Sample Reports. Redpath and Company | Proposal for Independent Professional Audit Services36 XI I . A C K N O W L E D G M E N T OF S C O P E / S C H E D U L E Auditing/Reporting Requirements We understand that the work to be performed is as stated in the Scope of Work to be Performed section of the Request for Proposal on Auditing Services, key elements of which are as follows: • Financial Audit and issuance of Independent Auditor’s Report. • Legal Compliance Audit and issuance of Minnesota Legal Compliance Report. • Report on Internal Control. • Communication with Those Charged with Governance. • Preparation of Annual Financial Report (City to prepare transmittal letter, narrative portion of MD&A, and statistical tables). • Single Audit (if required). We commit to perform the work within the time period outlined in the Request for Proposal. We believe our estimate of professional hours and fees to be competitive yet allow us to be responsive to your needs and provide high-quality service. We will respond to routine questions from City personnel during the year at no additional charge. Our proposed fee is based on the anticipated scope of services. An increase in the scope of service will necessitate an addendum (change order) to this agreement. Examples of an increase in the scope of service include additional audit procedures resulting from certain accounting issues or events, new contractual agreements, new accounting and auditing standards, if there is an indication of misappropriation or misuse of public funds, or difficulties encountered due to lack of accounting records, incomplete records, inaccurate records or turnover in the City’s staff. Value Added Services Additional services provided as part of doing business with Redpath and Company: • Proprietary client management system to maximize engagement efficiency. • Professionals who are able to communicate, interpret, and educate highly sophisticated financial concepts to a less technical audience in understandable terms. Detail on fees is presented in the Dollar Cost Proposal. 37City of Lake Elmo, Minnesota | December 31, 2018 through 2022 AP P E N D I X A - P E E R R E V I E W R E P O R T Redpath and Company | Proposal for Independent Professional Audit Services38 Proposer Guaranties The proposer certifies that it can and will provide and make available at a minimum, all services set forth in Section II, Nature of Services Required. Proposer Warranties 1. Proposer warrants that it is willing and able to comply with State of Minnesota laws with respect to foreign (non-state of Minnesota) corporations. 2. Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts or omissions of any officers, employees or agents thereof. 3. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Lake Elmo. 4. Proposer warrants that all information provided in connection with this proposal is true and accurate. Signature of Official: Name (Typed): Title: Firm: Date: Peggy A. Moeller, CPA Partner Redpath and Company, Ltd. November 2, 2018 AP P E N D I X B - G U A R A N T I E S AN D W A R R A N T I E S 39City of Lake Elmo, Minnesota | December 31, 2018 through 2022 Redpath Task List Client: City of Lake Elmo Client Manager: Peggy Moeller Date: November 2, 2018 Task Redpath Person Assigned Due Date Status Comments Determine scope of 2018 audit and issue engagement letter Peggy M.11/2018 Annual review of non-attest services with attest director/partner to determine whether independence is impaired and to determine the appropriate language required by the AICPA in the non-attest engagement letter Peggy M.11/2018 Schedule next month internal task review meeting (change due date each meeting)Peggy M.11/2018 Schedule audit with the City Andy H.11/2018 Annual meeting to review any required GAAP/SAS/Minnesota Statute changes and reminders Peggy M.12/2018 Schedule annual audit planning meeting with Sue Iverson Peggy M.12/2018 Plan December 31 audit procedures David J. / Lindsey P.12/2018 Audit planning Andy H. / David J. / Lyndsey P. 12/2018 Audit fieldwork – interim David J.1/2019 Assign trial balance accounts to financial statement line items David J.1/2019 Review status of audit confirmations David J.Jan or Feb 2019 Schedule quarterly meeting with Sue Iverson Peggy M.3/2019 Audit fieldwork - final David J.5/2019 Complete audit fieldwork David J.5/2019 Review final fieldwork Andy H. / David J.5/2019 Schedule quarterly meeting with Sue Iverson Peggy M.6/2019 Schedule audit exit meeting with client and Council meeting date Peggy M.6/2019 AP P E N D I X C - R E D P A T H T A S K L I S T Redpath and Company | Proposal for Independent Professional Audit Services40 AP P E N D I X D - S A M P L E R E P O R T S INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Members of the City Council City of Lake Elmo, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City of Lake Elmo, Minnesota’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. City of Lake Elmo, Minnesota | December 31, 2018 through 2022 41 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota, as of December 31, 2018, and the respective changes in financial position, and where applicable, cash flows thereof, and the budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note ___ to the financial statements, in 2018, the City adopted new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the OPEB related schedules, and pension related schedules on pages X-X and XX-XX be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lake Elmo, Minnesota’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards Redpath and Company | Proposal for Independent Professional Audit Services42 AP P E N D I X D - S A M P L E R E P O R T S generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated ____________, 2019, on our consideration of the City of Lake Elmo, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Lake Elmo, Minnesota’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Lake Elmo, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota ______________, 2019 City of Lake Elmo, Minnesota | December 31, 2018 through 2022 43 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council and management City of Lake Elmo, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City of Lake Elmo, Minnesota’s basic financial statements, and have issued our report thereon dated _____________, 2019. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Lake Elmo, Minnesota’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Lake Elmo, Minnesota’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Lake Elmo, Minnesota’s internal control. A d eficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during out audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Redpath and Company | Proposal for Independent Professional Audit Services44 AP P E N D I X D - S A M P L E R E P O R T S Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Lake Elmo, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota __________________, 2019 City of Lake Elmo, Minnesota | December 31, 2018 through 2022 45 MINNESOTA LEGAL COMPLIANCE REPORT Honorable Mayor and Members of the City Council City of Lake Elmo, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City of Lake Elmo, Minnesota’s basic financial statements, and have issued our report thereon dated __________, 2019. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. Section 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financings. Our audit considered all of the listed categories, except we did not test for compliance with the provisions of tax increment financing because the City does not have tax increment financing districts. In connection with our audit, nothing came to our attention that caused us to believe that the City of Lake Elmo, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we preformed additional procedures, other matters may have come to our attention regarding the City of Lake Elmo, Minnesota’s noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota _______________, 2019 Redpath and Company | Proposal for Independent Professional Audit Services46 AP P E N D I X D - S A M P L E R E P O R T S COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE Honorable Mayor and Members of the City Council City of Lake Elmo, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota (the City) for the year ended December 31, 2018. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated ________________, 2019. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note __ to the financial statements, the City changed accounting policies related to Postemployment Benefits Other than Pensions by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions in 2018. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Activities and the Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were management’s estimates of the net pension liability (asset), pension related deferred outflows and inflows of resources, and pension expense. Management’s estimates relating to the net pension liability (asset), pension related deferred outflows and inflows of resources and pension expense are based on actuarial studies. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. City of Lake Elmo, Minnesota | December 31, 2018 through 2022 47 Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosures most likely to be considered sensitive are Note __ – Employees’ Retirement Systems and Pension Plans and Note __– Prior Period Adjustments. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. There were no corrected misstatements identified during the audit. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated _______________, 2019. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Redpath and Company | Proposal for Independent Professional Audit Services48 AP P E N D I X D - S A M P L E R E P O R T S Other Matters We applied certain limited procedures to the management’s discussion and analysis, the schedule of changes in the City’s net OPEB liability and related ratios, the pension schedules, and the notes to required supplementary information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund financial statements and schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We are not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. NOTE – This section would also include any recommendation or other matters identified during the audit, performance/efficiency of the City compared to prior year or comparable governments, and potential need for a single audit. We work with City staff to identify areas of particular importance to the City and customize this section for each entity. Restriction of Use This information is intended solely for the information and use of the City of Lake Elmo, Minnesota’s City Council and management, and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota __________________, 2019 Redpath and Company Core Values Caring - Clients and colleagues must know we care—they must feel it. Committed - To the firm, the firm’s vision, clients, and colleagues. Continuously Improving - Always striving to be better, learn more, and offer more. Confident - In ourselves, our colleagues, and our firm. Connected - Awareness of the world and our surroundings, developing relationships, and articulating ideas. Philanthropic Culture Redpath and Company and its employees are committed to giving back. For over ten years our employees have had the option to donate a portion of their salaries to a company-designated charity each year. Each employee’s contribution is then matched by the company. Over the years, we have donated to many organizations from small, local groups to large, nationally recognized organizations. In 2017, Redpath and Company donated $15,000 to Junior Achievement of the Upper Midwest. Since 2011, Redpath and Company has contributed over $170,000 in charitable donations or sponsorships. In addition to financial contributions, Redpath and Company also provides paid time off for employees to volunteer at a favorite charitable organization. Supported Organizations 2018 - TreeHouse 2017 - Junior Achievement of the Upper Midwest 2016 - Second Mile Haiti 2015 - Make A Wish Foundation 2014 - Newtrax 2013 - Make A Wish Foundation 2012 - Minnesotan’s Military Appreciation Fund 2011 - Angel Foundation 2010 - Gillette Children’s Specialty Healthcare 2009 - Twin Cities Habitat for Humanity 2008 - Spare Key 2007 - White Bear Lake Area Emergency Food Shelf ©2018 Redpath and Company, Ltd. All Rights Reserved. Redpath and Company, Ltd is a member firm of the AICPA’s Governmental Audit Quality Center CONSISTENT SERVICE. GENUINE SOLUTIONS. PROPOSAL CONTACTPROPOSAL CONTACT Jason C. Miller, CPAJason C. Miller, CPA 952-920-1455952-920-1455 | j.miller@smithschafer.com| j.miller@smithschafer.com 7500 Highway 55, Suite 3507500 Highway 55, Suite 350 | Minneapolis, MN | 55427| Minneapolis, MN | 55427 www.smithschafer.comwww.smithschafer.com PROPOSAL FORPROPOSAL FORPROFESSIONALPROFESSIONAL SERVICESSERVICES City of Lake ElmoCity of Lake Elmo November 2018November 2018 TRANSMITTAL LETTERTRANSMITTAL LETTER PAGE 2PAGE 2 GENERAL INFORMATIONGENERAL INFORMATION PAGE 3PAGE 3 FIRM QUALIFICATIONS & EXPERIENCEFIRM QUALIFICATIONS & EXPERIENCE PAGE 3PAGE 3 LICENSE TO PRACTICE IN MINNESOTALICENSE TO PRACTICE IN MINNESOTA PAGE 3PAGE 3 QUALIFICATIONS OF SMITH SCHAFER STAFFQUALIFICATIONS OF SMITH SCHAFER STAFF PAGES 4 -PAGES 4 -77 REFERENCESREFERENCES PAGE 8PAGE 8 SPECIFIC AUDIT PROCESSSPECIFIC AUDIT PROCESS PAGES 9-10PAGES 9-10 FIRM INDEPENDENCEFIRM INDEPENDENCE PAGE 10PAGE 10 REPORT FORMATREPORT FORMAT PAGE 11-12PAGE 11-12 PEER REVIEWPEER REVIEW PAGE 13PAGE 13 PROPOSER GUARANTIES AND WARRANTIESPROPOSER GUARANTIES AND WARRANTIES PAGE 14PAGE 14 PROFESSIONAL FEESPROFESSIONAL FEES PAGE 15PAGE 15 11 TABLE OF CONTENTS Smith Schafer &Associates,Ltd.is pleased to submit our proposal to continue to provide professional services to the City of Lake Elmo. Smith Schafer is a community-orientedcommunity-oriented public accounting and business consulting firm offering a thoughtful advisory relationship to cities, businesses and individual clients.Our experience with the City of Lake Elmo and providing governmentgovernment accountingaccounting servicesservices inin MinnesotaMinnesota over the last 45 yearsover the last 45 years, provides us with a solid understanding of your business environment and needs. OUR GOAL IS TO CONTINUE TO PROVIDE THE CITY OF LAKE ELMO WITH HIGH-QUALITY, TIMELY AND VALUE-ADDED SERVICES. UNDERSTANDING OF WORK TO BE PERFORMED Smith Schafer understands the work to be performed in the timeline outline below.Our services will include the following: •Audit of the financial statements •Review of and assistance with the preparation of the Comprehensive Annual Financial Report •Single audit (if necessary) TIMELINE Detailed audit plan provided - December 2018 Audit fieldwork - April 2019 Draft reports - May 2019 Final reports - May 2019 Presentation to the City Council - June 2019 WHY SMITH SCHAFER •Smith Schafer is a recognized leader in providing accounting,auditing and consulting services to the governmental industry.Our Government Service Group,comprised of numerous professionals,is committed to serving over 7070 MinnesotaMinnesota governmentgovernment entitiesentities. Our team's deep experience with governments and member organizations reduces staff time and expensereduces staff time and expense. •Smith Schafer was recognized as a TopTop WorkplaceWorkplace inin MinnesotaMinnesota in 2018 by Energage.We possess a firm culture and environment stressing an entrepreneurial approach to business and continued professional growth.We believe these core factors support our veryvery low staff turnoverlow staff turnover. •We are a mid-sized firm with the expertiseexpertise andand resourcesresources ofof aa largelarge firmfirm,but with the personalpersonal contactcontact andand closeclose relationshipsrelationships you would expect from a smaller firm.With approximately 100 employees,we are large enough to have resources to keepkeep upup withwith constantly changing rules and regulationsconstantly changing rules and regulations. •Smith Schafer has provided highhigh quality,quality,responsiveresponsive serviceservices to the City of Lake Elmo since the audit of the City's 2012 financial statements.In addition,Smith Schafer assisted the City with obtaining its first Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association in 2013 and every year since,as well as providing significant amounts of accounting services for which the City was not billed. In summary,we will use our years of experience with the City of Lake Elmo,training and knowledge to provide proactive,dedicated,value- added and cost-effective services.We have developed this proposal that follows with the City of Lake Elmo in mind,providing information that is most relevant to your current business needs. This proposal is a firm irrevocable offer for 60 days. Please call if you need further information or clarification. Thank you for the opportunity to present this proposal. Sincerely, SMITH, SCHAFER & ASSOCIATES, LTD. Jason C. Miller, CPA Principal 22 TRANSMITTAL LETTER 33 OFFICE PRINCIPALS SENIOR MANAGERS MANAGERS SENIOR ACCOUNTANTS STAFF ACCOUNTANTS ADMIN. STAFF TOTAL Twin Cities 12 2 7 11 7 10 49 Rochester 9 4 1 8 8 8 38 Red Wing 2 1 0 1 1 2 7 TotalTotal 2323 77 88 2020 1616 2020 9494 CPAsCPAs 2323 77 88 1212 44 11 5555 HISTORY & STRUCTURE OF SMITH SCHAFER Smith Schafer is a certified public accounting and consulting firm with offices in the Twin Cities,Rochester and Red Wing,providing accounting, auditing,tax and consulting services.Smith Schafer is one of Minnesota'sMinnesota's TopTop 2525 AccountingAccounting FirmsFirms with an exceptional level of knowledge,insight and experience.We have approximately 100 staff who are skilled in understanding unique issues confronting our clients.Smith Schafer's Government Services Group has provided consulting as well as auditing and attest servicesservices toto numerousnumerous governmentalgovernmental organizationsorganizations sincesince 19711971.Smith Schafer's industry specialization allow us to stay on the leading edge of industry developments,regulations and opportunities,and will permit us to efficiently and effectively provide services tailored to the City of Lake Elmo's needs and requirements.This level of specialization makes us uniquelyuniquely qualifiedqualified to provide the high-quality audit services the City of Lake Elmo expects and deserves to receive. PRIMEGLOBAL Smith Schafer is a member of PrimeGlobal,the third largest association of independent accounting firms in the world,giving us access to a wide range of specialists with government accounting experience and affording our staff the opportunity to provide these special skills to other member firms within the PrimeGlobal network. LICENSE TO PRACTICE IN MINNESOTA Smith Schafer and each of the certified public accountants employed by Smith Schafer are licensed to practice public accounting in the State of Minnesota. SMITH SCHAFER STAFF ASSIGNED TO THE CITY OF LAKE ELMO The engagement team assigned to the City of Lake Elmo will remain the same as previous years.They are highly-qualifiedhighly-qualified and possess the appropriate experience and expertise to effectively serve you.You will have continuous access to your engagement team.We encourage you to reach out whenever you have questions and additionaladditional feesfees WILLWILL NOTNOT bebe chargedcharged unlessunless significantsignificant researchresearch isis involvedinvolved.The value in retaining our firm comes not only with the audit,but from our experience with the City of Lake Elmo and the education we can provide.The proposed engagement team would consist of the following members of our staff, all full-time staff employed out of our Twin Cities office. Individual bios to follow. •Jason Miller, CPA - Principal •Jill Schultz, CPA - Manager •Jenna Innes - Senior Accountant •Ben Hangsleben, CPA - Senior Accountant GENERAL INFORMATION 44 ENGAGEMENT TEAM WeWe recognizerecognize thethe importanceimportance ofof staffstaff continuitycontinuity whenwhen performingperforming anan efficientefficient andand effectiveeffective auditaudit ofof thethe CityCity ofof LakeLake ElmoElmo's's financialfinancial statements.statements.Therefore,Therefore,wewe makemake everyevery efforteffort toto keepkeep thethe samesame staffstaff assignedassigned toto thethe auditaudit engagementengagement fromfrom yearyear toto year.year.IfIf therethere isis aa needneed toto changechange personnelpersonnel onon thethe engagement,engagement, thethe replacementreplacement staffstaff willwill havehave similarsimilar oror betterbetter qualificationsqualifications andand experience.experience.YourYour engagementengagement teamteam willwill continuecontinue toto provideprovide youyou thethe openopen andand timelytimely communicationscommunications essentialessential forfor effectiveeffective engagementengagement planning,planning, performance and implementation.performance and implementation. Jason C. Miller, CPA AUDIT PRINCIPAL Learn a little about Jason...Learn a little about Jason... ExpertiseExpertise •Audit and attestation services •Employee benefit plan audits •Retirement plan consultation •Business consultation How Jason got hereHow Jason got here •Bachelor of Arts degree in Accounting from the University of Wisconsin, Superior •Joined the Twin Cities practice in December 1994 Current Governmental ClientsCurrent Governmental Clients •City of Lake Elmo •City of Hugo •City of St. Paul Park •City of St. Augusta •City of Spring Lake Park •Township of Linwood MemberMember •AICPA •MNCPA •North Metro Chamber of Commerce •White Bear Area Chamber of Commerce •Club Secretary - Mounds View/New Brighton Rotary Club How Jason approaches workHow Jason approaches work "You cannot provide the highest quality of service to clients by taking shortcuts.Take time to find the source of problems and help fix them.Stay sensitive to the client's needs and be respectful of their time." 55 Jill L. Schultz, CPA AUDIT MANAGER Learn a little about Jill...Learn a little about Jill... ExpertiseExpertise •Audit and attest services •Financial statement presentation •Retirement plans and audits How Jill got hereHow Jill got here •Bachelor of Arts degree in Accounting from Luther College •Joined the Twin Cities practice in December 2004 Current Governmental ClientsCurrent Governmental Clients •City of Lake Elmo •City of Hugo •City of St. Paul Park •City of St. Augusta •City of Spring Lake Park •Township of Linwood MemberMember •AICPA •MNCPA •MNCPA Young Professionals •Minnesota Council of Nonprofits •Minneapolis Chamber of Commerce How Jill approaches workHow Jill approaches work "Every client deserves to feel like they are your most important client and that their project is the most important thing you are working on." 66 Jenna P.G. Innes SENIOR ACCOUNTANT Learn a little about Jenna...Learn a little about Jenna... ExpertiseExpertise •Audit and attest services •Financial statement presentation •Retirement plans and audits How Jenna got hereHow Jenna got here •Bachelor of Accounting from Winona State University •Joined the Twin Cities practice in 2012 Current Governmental ClientsCurrent Governmental Clients •City of Lake Elmo •City of Hugo •City of St. Paul Park •City of St. Augusta •City of Spring Lake Park •Township of Linwood MemberMember •Minnesota State High School Mathematics League Board of Directors •ComMUSICation volunteer bookkeeper How Jenna approaches workHow Jenna approaches work "I strive to make my clients feel valued and important while providing solutions in a timely manner." 77 BENJAMIN A. HANGSLEBEN, CPA SENIOR ACCOUNTANT Learn a little about Ben...Learn a little about Ben... ExpertiseExpertise •Audit, review and other attest services •Financial statement services •Nonprofit accounting •401(k) Plan audits How Ben got hereHow Ben got here •Bachelor of Accounting from Metropolitan State University •Bachelor of Communications from University of Minnesota •Joined the Twin Cities practice with the merger of BPKZ in January 2017 Current Governmental ClientsCurrent Governmental Clients •City of Lake Elmo •City of St. Paul Park •Township of Linwood MemberMember •AICPA •MNCPA •Minneapolis City of Lakes Rotary Club How Ben approaches workHow Ben approaches work "My goal is to ensure every client understands that we have a vested interest in their success. I personally enjoy taking the complexity out of accounting and taxation to discuss matters in terms clients more readily identify with." Smith Schafer is a recognized leader in providing accounting,auditing and consulting services to government entities.Our Government Service Group,comprised of numerous professionals,is committed to servingserving overover 7070 MinnesotaMinnesota governmentsgovernments.There is no greater way to define our industry expertise than through the clients we serve.We have veryvery minimalminimal clientclient turnoverturnover which speaks volumes as to our expertise and client service.The following are some of our governmental clients: SAMPLE OF ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES City of Hugo City of Spring Lake Park City of St. Augusta City of Chatfield City of Rochester City of St. Paul Park Linwood Township City of Spring Valley City of Stewartville City of Kellogg City of Caledonia City of Wanamingo CITY OF HUGO RON OTKIN, FINANCE DIRECTOR 651-762-6314 CITY OF SPRING LAKE PARK DANIEL BUCHHOLTZ, CITY ADMINISTRATOR 763-784-6491 CITY OF ST.AUGUSTA BILL MCCABE, CITY ADMINISTRATOR 320-654-0387 88 REFERENCES AUDIT METHODOLOGY Our approach demonstrates our experience with the City of Lake Elmo.We will continue to work closely with your management team during all phases of the audit process.We utilize a non-disruptive approach and coordinate in detail with the accounting department personnel and adapt to your business protocols rather than dictate our processes. A successful audit engagement requires the auditor's understanding of the business environment,as well as your understanding of our audit approach and work plan.From the start,your Smith Schafer engagement team will place an emphasis on detailed and thorough planning and strengthening our relationship with the City of Lake Elmo.We will listen to what you have to say and what your financial statements are telling the reader.We will make sure you understand exactly what we are doing at every step of the engagement and that you are pleased with the budget,the assigned staff,schedule and the delivery of our products. AUDIT PLANNING PHASE At Smith Schafer,we emphasize planning in order to ensure an audit engagement with a minimalminimal levellevel ofof disruptiondisruption to the City of Lake Elmo staff. The audit planning phase will be performed by the Principal and Manager. During this phase we will: •Assess current year activity. •Review expectations of client assistance. •Develop a schedule for the completion of the audit fieldwork and reporting phases of the engagement. •Perform preliminary materiality determinations and risk assessment. •Perform preliminary assessment of fraud factors. •Assess control risk. •Determine type and extent of substantive transaction and analytical review testing based on assessed level of control risk. •Make inquiries of management and other employees regarding fraud in accordance with Auditing Standards. This is an excellent time for the City of Lake Elmo personnel to resolve any questions they have regarding the audit.The value in retaining our firm comes from not only the audit,but from our experience with your organization and the education we can provide.As questions and concerns arise throughout the year, we encourage the City of Lake Elmo personnel to contact us and draw on our knowledge and experience. AUDIT FIELDWORK PHASE We assess risks,design procedures and obtain evidence to support financial statement amounts and disclosures during fieldwork.We utilize a methodologymethodology designeddesigned forfor governmentalgovernmental unitsunits.Our process emphasizes continuous communicationcommunication andand trainingtraining with your staff.The audit fieldwork phase will be performed by all members of the engagement team. During this phase we will: •Perform preliminary analytical review of account balances including budget variations. •Document and test internal accounting controls through review of accounting procedure manuals and discussion with the City of Lake Elmo. •Update depreciation records for capital asset additions and retirements, as necessary. •Review account reconciliations and related detail. •Test the propriety of all material account balances. •Perform substantive testing of transactions of selected accounts, sample sizes to be based on assessed level of control risk. •Obtain permanent file documentation. •Perform general audit procedures including compliance questionnaires and management inquires. 99 SPECIFIC AUDIT PROCESS POST-FIELDWORK PHASE The reporting phase will be completed by all members of the engagement team. During the reporting phase we will: •Prepare and/or assist the City of Lake Elmo in preparing the city's Comprehensive Annual Financial Report (CAFR)using the audited trial balance, review the CAFR for compliance with GAAP and the City of Lake Elmo financial statement policies. •Provide drafts of the audit report and our audit management letter. •Review the CAFR, management letter and governance letter with management and make any adjustments/changes. •Provide all recommendations,revisions to the CAFR and/or accounting policies and procedures,and other suggestions for improvement to the City of Lake Elmo personnel. •Present Power Point financial summary (management report) and historical financial activity to the Council for the City of Lake Elmo. AUDIT SAMPLES FOR PURPOSES OF TESTS OF COMPLIANCE Since each client is different and may differ from year to year,we use a variety of statistical designs in our compliance testing.The size of the sample considers many factors:size,maturity,complexity,level of oversight and prior audit findings.Ultimately,our professional judgement determines that a representative number of transactions have been selected. ANALYTICAL PROCEDURES Evaluations of financial information made by a study of plausible relationships around both financial and non-financial data are required in the planning and final review stage, but our firm encourages staff to use such procedures in substantive testing wherever possible. IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS At this time,we do not anticipate any potential audit problems.If problems do arise,Smith Schafer will work carefully with management to resolve the matter. FIRM INDEPENDENCE Smith,Schafer &Associates,Ltd.has performed the audit for the City of Lake Elmo since 2012.However,Smith Schafer and its employees are considered independent of the City of Lake Elmo under generally accepted auditing standards.We do not know of any professional or personal relationships between the City of Lake Elmo and Smith Schafer,or any of Smith Schafer's employees that would be considered a conflict of interest. Although no other professional relationships are contemplated,if Smith Schafer enters into any such relationships during the period of the proposed engagement, written notice will be given to the City of Lake Elmo. 1010 SPECIFIC AUDIT PROCESS 1111 REPORT FORMAT 1212 REPORT FORMAT Click to add content... 1313 PEER REVIEW PROPOSER GUARANTIES The proposer certifies it can and will provide and make available,as a minimum,all services set forth in the Nature of Service Required section of the Request for Proposals for Professional Auditing Services. PROPOSER WARRANTIES 1.Proposer warrants that it is willing and able to comply with State of Minnesota laws with respect to foreign (non-State of Minnesota) corporations. 2.Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. 3.Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Lake Elmo. 4.Proposer warrants that all information provided by it in connection with this proposal is true and accurate. Jason C. Miller, CPA (Printed Name) Principal (Title) Smith Schafer & Associates, Ltd. (Firm) November 2018 (Date) 1414 PROPOSER GUARANTIES AND WARRANTIES 1515 AUDIT OF THE 2018 FINANCIAL STATEMENTS HOURS STANDARD HOURLY RATE QUOTED HOURLY RATE TOTAL Partner 25.00 340.00 205.00 $5,125.00 Manager 60.00 240.00 145.00 $8,700.00 Supervisory Staff 70.00 175.00 115.00 $8,050.00 Staff 30.00 175.00 100.00 $3,000.00 SubtotalSubtotal $24,875.00 Preparation of CAFR $3,200.00 TOTAL ALL-INCLUSIVE MAXIMUM PRICE FOR 2018 (NOT INCLUDING SINGLE AUDIT)$28,075.00 Single Audit (if needed) maximum price for 2018 $4,100.00 TOTAL ALL-INCLUSIVE (NOT INCLUDING SINGLE AUDIT) MAXIMUM PRICE FOR:TOTAL ALL-INCLUSIVE (NOT INCLUDING SINGLE AUDIT) MAXIMUM PRICE FOR: 2019 $28,975.00 2020 $29,95000 2021 $31,100.00 2022 $32,250.00 TOTAL SINGLE AUDIT (IF NEEDED) MAXIMUM PRICE FOR:TOTAL SINGLE AUDIT (IF NEEDED) MAXIMUM PRICE FOR: 2019 $4,225.00 2020 $4,350.00 2021 $4,500.00 2022 $4,675.00 MANNER OF PAYMENT Progress payments will be made on the basis of hours of work completed during the course of the engagement in accordance with the firm's dollar cost bid proposal. Interim billings will cover a period of not less than a calendar month. PROFESSIONAL FEES 1616 CONTACT US SmithSmith SchaferSchafer isis veryvery interestedinterested inin continuingcontinuing toto workwork withwith thethe CityCity ofof LakeLake ElmoElmo andand wouldwould lovelove toto setset upup aa meetingmeeting withwith youyou toto answeranswer anyany questionsquestions youyou maymay havehave andand determinedetermine thethe nextnext stepssteps in this process.in this process. Jason C. Miller, CPA PRINCIPAL SMITH SCHAFER & ASSOCIATES, LTD. 952-920-1455 | j.miller@smithschafer.com952-920-1455 | j.miller@smithschafer.com 7500 Highway 55, Suite 350 | Minneapolis, MN | 554277500 Highway 55, Suite 350 | Minneapolis, MN | 55427 www.smithschafer.comwww.smithschafer.com STAFF REPORT DATE: November 20, 2018 PUBLIC HEARING Item #: 14 AGENDA ITEM: 2019 Street and Utility Improvements – Public Improvement Hearing; Resolution Ordering the Preparation of Plans and Specifications; Approve Engineering Services Contract SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sue Iverson, Finance Director Sarah Sonsalla, City Attorney Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: The City Council is respectfully requested to open the Public Improvement Hearing for the 2019 Street and Utility Improvements; and following the Hearing, consider adopting a Resolution Ordering the Preparation of Plans and Specifications; and awarding a Professional Engineering Design and Construction Support Services Contract. BACKGROUND: Pursuant to Minnesota Statutes, Section 429.011 to 429.111, a Public Improvement Hearing was noticed for November 20, 2018, to consider making the improvements necessary to reconstruct approximately 1.5 miles of local streets including 36th Street North, from Jamaca Avenue to Irwin Avenue, 37th Street North, from Jamaca Avenue to Irwin Avenue, Irwin Avenue North, from 36th Street to 37th Street, 38th Street North, from Innsdale Avenue to Ideal Avenue (CSAH 13), 39th Street North, from Innsdale Avenue to Ideal Avenue (CSAH 13), and Innsdale Avenue North, from 38th Street to 39th Street. The attached notice was published in the official newspaper and individual notifications were sent to each address that will be wholly or partially assessed for the improvements. A feasibility report was adopted by the City Council on October 16, 2018 in order to ready these improvements for 2019 construction. The feasibility report is needed to meet state statutory requirements if any portion of the project is to be assessed. The report identifies the necessary improvements, the estimated project costs, the assessment methodology and preliminary assessment amounts to be levied against benefitting properties. PROPOSAL DETAILS/ANALYSIS: The total estimated project cost is $3,674,500. The street and drainage improvements are estimated to be $2,317,100 and the watermain improvements are estimated to be $1,357,400. The improvements would be partially assessed against the benefitting properties consistent with the City’s Special Assessment Policy. Residential street improvements are assessed 30% of the total project costs while watermain improvements are assessed 100% to the benefitting properties after deducting City oversize costs. The City’s general tax levy is used to cover the bond payments for the remaining street improvements. The Water Enterprise Fund is used to cover the watermain oversize or trunk costs. A lateral benefit assessment would be levied against properties along the proposed trunk watermain on Ideal Avenue. Residential properties along 36th Street North, 37th Street North, Irwin Avenue North, 38th Street North, 39th Street North, and Innsdale Avenue North with direct access to the street are included as benefitting properties. Each property is assessed one unit unless the property has the ability to be subdivided using the current underlying land use and zoning regulations. The planning department reviews larger parcels to determine if a parcel can be subdivided and the number of lots that could be obtained. The preliminary assessment rolls detailing each property’s proposed assessment amount are included in the Appendix of the report and are attached to this agenda report. Assessments for street and drainage improvements are levied over 15 years while assessments for watermain improvements area levied over 20 years. Assessments are charged an interest rate of 1% over the bond rate for the project. To complete the engineering design, the City Engineer prepared and sent out a Request for Proposal (RFP) for the Engineering Support Services that include topographic survey, the preparation of plans and specifications; plan printing, distribution and bidding services; construction administration support to the City Engineer, and construction staking. FOCUS Engineering will provide council communication, project management, and construction administration and observation services for the project. FOCUS will also oversee the project design standards and documents to be incorporated with the project plans and specifications. The RFP was sent to three firms from the city’s Engineering Consultant Pool, including Bolton and Menk, TKDA and SEH. Proposals were received on November 8, 2018 and were ranked as follows: • Project Team Qualifications with a focus on a Project Manager capable of leading and delivering a cost effective street reconstruction and utility improvement project. • Demonstrated understanding and experience with the project and understanding of the critical success factors. • Understanding the scope of work and roles and responsibilities of the Consultant. • Collaboration of skills and responsiveness demonstrated during the RFP submittal process and: • Engineering Fees, indicating a detailed breakdown that is consistent with the Consultant’s written proposal and the needs for delivery of a successful project. The attached exhibit provides the Proposal Fee Summary as received by the responding consultants. The Proposal Fees ranged from $128,775 to $162,926 for the full scope of the proposed improvements. Engineering Fees are subtotaled for each project phase including project management, plans and specifications, bidding, and construction support services including construction staking. The City Engineer is recommending a contract be awarded to SEH, Inc. They have assigned a qualified team appropriate for the level of work required for this project and have previous work experience on similar projects. SEH also identified a thorough understanding of the work to be performed, they are aware of key issues related to the project and assigned the appropriate level of work effort required for construction staking services. FISCAL IMPACT: The 2019 Street and Utility Improvements is an estimated $3,674,500 infrastructure project that will be partially assessed against the benefitting properties consistent with the City’s Special Assessment Policy. The project is funded through the issuance of general obligation bonds and special assessments. Authorizing the preparation of plans and specifications commits the City to incur the engineering costs necessary to complete detailed design and receive contractor bids to ready the project for construction in 2019. The Council will be asked to order the improvements and award a contract for construction in April 2019, at which time the City would be asked to commit to the remaining project costs. OPTIONS: 1. Adopt the Resolution and motions as presented to proceed with the preparation of plans and specifications for the 2019 Street and Utility Improvements as outlined in the Feasibility Report approved on October 16, 2018. 2. Following public input, amend any portion of the recommended improvements or recommendations of the Feasibility Report and adopt an amended Feasibility Report along with an amended Resolution and/or motions accordingly. 3. Take no action thereby cancelling the 2019 Street and Utility Improvements and direct staff for reprogramming these improvements within the Capital Improvement Plan. RECOMMENDATION: Staff is recommending that the City Council adopt a Resolution Ordering the Preparation of Plans and Specifications for the 2019 Street and Utility Improvements. The recommended motion for this action is as follows: “Move to adopt Resolution No. 2018-131 Ordering the Preparation of Plans and Specifications for the 2019 Street and Utility Improvements.” Staff is also recommending that the City Council award a Professional Engineering Design and Construction Support Services Contract for the 2019 Street and Utility Improvements. Staff is recommending SEH, Inc. be awarded the contract in a not to exceed amount of $162,926, or $150,200 if no watermain is authorized for the Bordners Garners Farmettes neighborhood. The recommended motion for this action is as follows: “Move to approve a Professional Engineering Design and Construction Support Services Contract to SEH, Inc. for the 2019 Street & Utility Improvements in the not to exceed amount of $____________.” ATTACHMENTS: 1. Resolution Ordering the Improvements and the Preparation of Plans and Specifications. 2. Notice of Hearing on Improvement. 3. Preliminary Assessment Roll. 4. Location Map. 5. Project Schedule. 6. Engineering Proposal Fee Summary Worksheet. CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2018-131 A RESOLUTION ORDERING THE OF PLANS AND SPECIFICATIONS FOR THE 2019 STREET AND UTILITY IMPROVEMENTS WHEREAS, pursuant to City Council authorization, adopted on October 16, 2018, the Council ordered a hearing on improvement for the 2019 Street and Utility Improvements; and WHEREAS, ten days mailed notice and two weeks published notice of the hearing was given, and the hearing was held thereon on the 20th day of November 2018, at which all persons desiring to be heard were given the opportunity to be heard thereon; and WHEREAS, the feasibility report prepared by FOCUS Engineering, Inc., and dated October 2018 states that the project is necessary, cost-effective, and feasible. NOW, THEREFORE, BE IT RESOLVED, 1. Such improvement is deemed necessary, cost-effective, and feasible as detailed in the Feasibility Report dated October 2018. 2. The City Engineer is hereby designated as the engineer for making this improvement. The engineer, and his consultants, shall oversee the preparation of the Plans and Specifications for the making of such improvement. 3. The City Engineer shall retain the services of a consulting engineering firm to assist, where needed, to prepare Plans and Specifications for the making of such improvement and to assist the City Engineer during the construction phase of the improvement as requested. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE TWENTIETH DAY OF NOVEMBER, 2018. CITY OF LAKE ELMO By: __________________________ Mike Pearson (Seal) Mayor ATTEST: ________________________________ Julie Johnson City Clerk CITY OF LAKE ELMO NOTICE OF HEARING ON IMPROVEMENT 2019 STREET AND UTILITY IMPROVEMENTS Notice is hereby given that the City Council of Lake Elmo will meet in the council chambers of the city hall at or approximately after 7:00 P.M. on Tuesday, November 20, 2018, to consider the making of the following improvements, pursuant to Minnesota Statutes, Sections 429.011 to 429.111; The improvements consist of the reconstruction of the existing streets, drainage and storm sewer improvements, and watermain improvements within the Bordners Garner Farmettes and Kenridge Addition neighborhoods, along the following street segments: • 36th Street North, from Jamaca Avenue to Irwin Avenue. • 37th Street North, from Jamaca Avenue to Irwin Avenue. • Irwin Avenue North, from 36th Street to 37th Street. • 38th Street North, from Innsdale Avenue to Ideal Avenue (CSAH 13). • 39th Street North, from Innsdale Avenue to Ideal Avenue (CSAH 13). • Innsdale Avenue North, from 38th Street to 39th Street. The area proposed to be assessed for these improvements include properties abutting the above referenced streets or properties that gain direct driveway access from the above referenced streets. The estimated total cost of the street and drainage improvements is $2,317,100 and the estimated total cost of the watermain improvements is $1,357,400. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desiring to be heard with reference to the proposed improvements will be heard at this meeting. DATED: October 16, 2018 BY ORDER OF THE LAKE ELMO CITY COUNCIL Mike Pearson, Mayor (Published in the Oakdale/Lake Elmo Review on October 24, 2018 and October 31, 2018) CITY OF LAKE ELMO, MN. OCTOBER 2018 2019 STREET IMPROVEMENTS BORDNERS GARNER FARMETTES NEIGHBORHOOD PRELIMINARY ASSESSMENT ROLL STREET AND WATERMAIN IMPROVEMENTS PAGE 1 of 1 NO. NAME PID TOTAL ASSESSMENT AMOUNT STREET AND DRAINAGE ASSESSMENT AMOUNT WATERMAIN ASSESSMENT AMOUNT 1 JOHNSON DONALD J & SHIRLEY E 8050 39TH ST N 8050 39TH ST N LAKE ELMO MN 55042 1602921220005 $22,400.00 $9,600.00 $12,800.00 2 PAULSON LAWRENCE W 8080 39TH ST N 8080 39TH ST N LAKE ELMO MN 55042 1602921220006 $22,400.00 $9,600.00 $12,800.00 3 SPREEMAN DOUGLAS P & LISA M 8120 39TH ST N 8120 39TH ST N LAKE ELMO MN 55042 1602921220007 $22,400.00 $9,600.00 $12,800.00 4 COUGHLIN WILFRED L & CHERIE L 8140 39TH ST N 8140 39TH ST N LAKE ELMO MN 55042 1602921220008 $22,400.00 $9,600.00 $12,800.00 5 BLOSSOM SUSAN M 8170 39TH ST N 8170 39TH ST N LAKE ELMO MN 55042 1602921220009 $22,400.00 $9,600.00 $12,800.00 6 BROMBACK KATHRYN M & ERIK D HULS 8234 39TH ST N 8234 39TH ST N LAKE ELMO MN 55042 1602921220011 $22,400.00 $9,600.00 $12,800.00 7 SCHMIDT RYAN M 8268 39TH ST N 8268 39TH ST N LAKE ELMO MN 55042 1602921210001 $22,400.00 $9,600.00 $12,800.00 8 BARKWELL MICHAEL E & JENNIFER M SEEBACK 8320 39TH ST N 8320 39TH ST N LAKE ELMO MN 55042 1602921210002 $22,400.00 $9,600.00 $12,800.00 9 LAU PATRICIA 8370 39TH ST N 8370 39TH ST N LAKE ELMO MN 55042 1602921210003 $22,400.00 $9,600.00 $12,800.00 10 SMITH TAYLOR B & ANGELA M 8390 39TH ST N 8390 39TH ST N LAKE ELMO MN 55042 1602921210004 $22,400.00 $9,600.00 $12,800.00 11 JACKLE MARLIES A & ARLENE A FISHER 8420 39TH ST N 8420 39TH ST N LAKE ELMO MN 55042 1602921210005 $22,400.00 $9,600.00 $12,800.00 12 DEMKO JAMES T & PENNY J 3929 INNSDALE AVE N 3929 INNSDALE AVE N LAKE ELMO MN 55042 1602921210007 $22,400.00 $9,600.00 $12,800.00 13 FRID KEVIN D & KATIE J 3909 INNSDALE AVE N 3909 INNSDALE AVE N LAKE ELMO MN 55042 1602921210008 $22,400.00 $9,600.00 $12,800.00 14 LAMBERT ROBERT A & LYNN C 3889 INNSDALE AVE N 3889 INNSDALE AVE N LAKE ELMO MN 55042 1602921210006 $22,400.00 $9,600.00 $12,800.00 15 JOHN H JACK ZWICKEY REV TRS 3817 INNSDALE AVE N 3817 INNSDALE AVE N LAKE ELMO MN 55042 1602921210009 $22,400.00 $9,600.00 $12,800.00 16 BREHEIM BARRY B & GERALDINE 8415 38TH ST N 8415 38TH ST N LAKE ELMO MN 55042 1602921210010 $22,400.00 $9,600.00 $12,800.00 17 VANG ROGER & MAI XIONG 8375 38TH ST N 8375 38TH ST N LAKE ELMO MN 55042 1602921210011 $22,400.00 $9,600.00 $12,800.00 18 MESSNER LISA A 8321 38TH ST N 8321 38TH ST N LAKE ELMO MN 55042 1602921210012 $22,400.00 $9,600.00 $12,800.00 19 PINZ DONALD & BARBARA 8309 38TH ST N 8309 38TH ST N LAKE ELMO MN 55042 1602921210013 $22,400.00 $9,600.00 $12,800.00 20 GHORMLEY ADAM R & MEGAN M 8261 38TH ST N 8261 38TH ST N LAKE ELMO MN 55042 1602921210014 $22,400.00 $9,600.00 $12,800.00 21 ANDERSON MICHAEL R & DEBRA A 8229 38TH ST N 8229 38TH ST N LAKE ELMO MN 55042 1602921220012 $22,400.00 $9,600.00 $12,800.00 22 MILLER DAVID R & CONSTANCE L 8171 38TH ST N 8171 38TH ST N LAKE ELMO MN 55042 1602921220013 $22,400.00 $9,600.00 $12,800.00 23 MILLER GREGORY & PAMELA 8139 38TH ST N 2685 BARCLAY ST N MAPLEWOOD MN 55109 1602921220014 $9,600.00 $9,600.00 $0.00 24 OLSON DAVID J & KAY 8089 38TH ST N 8089 38TH ST N LAKE ELMO MN 55042 1602921220015 $22,400.00 $9,600.00 $12,800.00 25 MORIS RICHARD W 3797 IDEAL AVE N 3797 IDEAL AVE N LAKE ELMO MN 55042 1602921220017 $22,400.00 $9,600.00 $12,800.00 26 DIESSLIN ZACHARY J 8030 38TH ST N 8030 38TH ST N LAKE ELMO MN 55042 1602921220018 $22,400.00 $9,600.00 $12,800.00 27 BERNSTETTER DENNIS P & LYNN 8001 39TH ST N 8001 39TH ST N LAKE ELMO MN 55042 1602921220032 $22,400.00 $9,600.00 $12,800.00 28 SWANSON ROGER D & DEBORAH R 8011 39TH ST N 8011 39TH ST N LAKE ELMO MN 55042 1602921220021 $22,400.00 $9,600.00 $12,800.00 29 GLANTZ JERALD & DEBRA CASPERS 8085 39TH ST N 8085 39TH ST N LAKE ELMO MN 55042 1602921220022 $22,400.00 $9,600.00 $12,800.00 30 MARKUSON JUDY M 8121 39TH ST N 8121 39TH ST N LAKE ELMO MN 55042 1602921220023 $22,400.00 $9,600.00 $12,800.00 31 SCHMITT ALFRED J & SANDRA A 8173 39TH ST N 8173 39TH ST N LAKE ELMO MN 55042 1602921220024 $22,400.00 $9,600.00 $12,800.00 32 WHITAKER FRANKLIN D & YVONNE 8193 39TH ST N 8193 39TH ST N LAKE ELMO MN 55042 1602921220025 $22,400.00 $9,600.00 $12,800.00 33 WRIGHT LIVING TRS 8225 39TH ST N 8225 39TH ST N LAKE ELMO MN 55042 1602921220026 $22,400.00 $9,600.00 $12,800.00 34 WILKES DENNIS F & MARY M 8271 39TH ST N 8271 39TH ST N LAKE ELMO MN 55042 1602921210015 $22,400.00 $9,600.00 $12,800.00 35 TANEY LEONARD J 8309 39TH ST N 8309 39TH ST N LAKE ELMO MN 55042 1602921210016 $22,400.00 $9,600.00 $12,800.00 36 VAN AMPTING ANDREA & DANIEL 8367 39TH ST N 8367 39TH ST N LAKE ELMO MN 55042 1602921210017 $22,400.00 $9,600.00 $12,800.00 37 ADAMS PAULA D 3948 INNSDALE AVE N 3948 INNSDALE AVE N LAKE ELMO MN 55042 1602921210018 $22,400.00 $9,600.00 $12,800.00 38 PETERSON GREGORY LAWRENCE 8388 38TH ST N 8388 38TH ST N LAKE ELMO MN 55042 1602921210019 $22,400.00 $9,600.00 $12,800.00 39 RASSETT JESSE 8350 38TH ST N 8350 38TH ST N LAKE ELMO MN 55042 1602921210020 $22,400.00 $9,600.00 $12,800.00 40 HOFF GARY W & PATRICIA J 8332 38TH ST N 8332 38TH ST N LAKE ELMO MN 55042 1602921210021 $22,400.00 $9,600.00 $12,800.00 41 RASMUSSEN CARISA & ANDREW 8312 38TH ST N 8312 38TH ST N LAKE ELMO MN 55042 1602921210022 $22,400.00 $9,600.00 $12,800.00 42 ANDERSON RICHARD A & JANICE 8290 38TH ST N 8290 38TH ST N LAKE ELMO MN 55042 1602921210023 $22,400.00 $9,600.00 $12,800.00 43 FELDKAMP MARK W & KAREN M 8254 38TH ST N 8254 38TH ST N LAKE ELMO MN 55042 1602921220027 $22,400.00 $9,600.00 $12,800.00 44 WULFING DONNAMARIE E 8196 38TH ST N 8196 38TH ST N LAKE ELMO MN 55042 1602921220028 $22,400.00 $9,600.00 $12,800.00 45 CONLIN PATRICK & KRISTIN M 8160 38TH ST N 8160 38TH ST N LAKE ELMO MN 55042 1602921220029 $22,400.00 $9,600.00 $12,800.00 46 VUE SEE 8110 38TH ST N 8110 38TH ST N LAKE ELMO MN 55042 1602921220030 $22,400.00 $9,600.00 $12,800.00 47 LY KOU & JOUA Y 8080 38TH ST N 8080 38TH ST N LAKE ELMO MN 55042 1602921220031 $22,400.00 $9,600.00 $12,800.00 48 FRIEDRICH STEVEN &FARRAH D ALEXANDER 3765 IDEAL AVE N 3765 IDEAL AVE N LAKE ELMO MN 55042 1602921220016 $5,800.00 $0.00 $5,800.00 TOTAL $1,045,800.00 $451,200.00 $594,600.00 ADDRESS MAILING ADDRESS CITY OF LAKE ELMO, MN. OCTOBER 2018 2019 STREET IMPROVEMENTS KENRIDGE ADDITION NEIGHBORHOOD PRELIMINARY ASSESSMENT ROLL PAGE 1 of 1 NO. NAME PID TOTAL ASSESSMENT AMOUNT STREET AND DRAINAGE ASSESSMENT AMOUNT 1 JOHNSON GORDON G & MARGARET 8804 37TH ST N 8804 37TH ST N LAKE ELMO MN 55042 1602921140013 $10,300.00 $10,300.00 2 HARTUNG TIMOTHY & LINDSEY 8834 37TH ST N 8834 37TH ST N LAKE ELMO MN 55042 1602921140012 $10,300.00 $10,300.00 3 SKRIEN DOUGLAS S 8862 37TH ST N 8862 37TH ST N LAKE ELMO MN 55042 1602921140011 $10,300.00 $10,300.00 4 OHRT JOANN R 8894 37TH ST N 841 RICE CREEK TERR NE FRIDLEY MN 55432 1602921140006 $10,300.00 $10,300.00 5 AMERICAN'S GOT TALENT LLC 8914 37TH ST N 985 HILLWIND RD NE FRIDLEY MN 55432 1602921140005 $10,300.00 $10,300.00 6 MCCLELLAN LYNN J 8938 37TH ST N 8938 37TH ST N LAKE ELMO MN 55042 1602921140004 $10,300.00 $10,300.00 7 HARRINGTON DELBERT A & CAROL S 3740 JAMACA AVE N 3740 JAMACA AVE N LAKE ELMO MN 55042 1602921140002 $10,300.00 $10,300.00 8 BOCHE RAYMOND M & VICKI 8801 37TH ST N 8801 37TH ST N LAKE ELMO MN 55042 1602921140019 $10,300.00 $10,300.00 9 WELTER LARRY & LISA 8831 37TH ST N 8831 37TH ST N LAKE ELMO MN 55042 1602921140020 $10,300.00 $10,300.00 10 WILLIAMSON GLEN A & LINDA L 8861 37TH ST N 8861 37TH ST N LAKE ELMO MN 55042 1602921140021 $10,300.00 $10,300.00 11 SANNER LISA M 8891 37TH ST N 8891 37TH ST N LAKE ELMO MN 55042 1602921140010 $10,300.00 $10,300.00 12 DRAGER STEVEN & CHRISTY 8909 37TH ST N 8909 37TH ST N LAKE ELMO MN 55042 1602921140009 $10,300.00 $10,300.00 13 BELAK SHARON L 8939 37TH ST N 8939 37TH ST N LAKE ELMO MN 55042 1602921140008 $10,300.00 $10,300.00 14 TERRI L FRANZWA LIVING TRS 8961 37TH ST N 8961 37TH ST N LAKE ELMO MN 55042 1602921140007 $10,300.00 $10,300.00 15 STREGE RAYMOND M & GLENDA L 8808 36TH ST N 8808 36TH ST N LAKE ELMO MN 55042 1602921140018 $10,300.00 $10,300.00 16 WALDO MARK 8838 36TH ST N 8838 36TH ST N LAKE ELMO MN 55042 1602921140017 $10,300.00 $10,300.00 17 RANTILA REINO J & JOHANNA H 8890 36TH ST N 8890 36TH ST N LAKE ELMO MN 55042 1602921140016 $10,300.00 $10,300.00 18 FLEISCHMAN ROBERT E & NATASHA 8928 36TH ST N 8928 36TH ST N LAKE ELMO MN 55042 1602921140015 $10,300.00 $10,300.00 19 GREISING RICK M 8968 36TH ST N 8968 36TH ST N LAKE ELMO MN 55042 1602921140014 $10,300.00 $10,300.00 20 WINTER ROBERT C & SANFRA M 8809 36TH ST N 8809 36TH ST N LAKE ELMO MN 55042 1602921140026 $10,300.00 $10,300.00 21 MANN JOSEPH & MARK G 8839 36TH ST N 8839 36TH ST N LAKE ELMO MN 55042 1602921140025 $10,300.00 $10,300.00 22 SCHIMEROWSKI DAVID A & MARTINA U JOHNTZ 8879 36TH ST N 8879 36TH ST N LAKE ELMO MN 55042 1602921140024 $10,300.00 $10,300.00 23 QUINN RICHARD K & DIANE L 8929 36TH ST N 8929 36TH ST N LAKE ELMO MN 55042 1602921140023 $10,300.00 $10,300.00 24 POSEL RICHARD L & SUSAN M 8969 36TH ST N 8969 36TH ST N LAKE ELMO MN 55042 1602921140022 $10,300.00 $10,300.00 TOTAL $247,200.00 $247,200.00 ADDRESS MAILING ADDRESS PROJECT SCHEDULE CITY OF LAKE ELMO 2019 STREET AND UTILITY IMPROVEMENTS PROJECT NO. 2018.130 FOCUS ENGINEERING, inc. Cara Geheren, P.E. 651.300.4261 Jack Griffin, P.E. 651.300.4264 Ryan Stempski, P.E. 651.300.4267 Chad Isakson, P.E. 651.300.4283 OCTOBER 2018 AUGUST 21, 2018 Council oders preparation of Feasibility Report. OCTOBER 16, 2018 Presentation of Feasibility Report. Council accepts Report and calls for Improvement Hearing. NOVEMBER 20, 2018 Public Improvement Hearing. Council orders the preparation of Plans and Specifications. MARCH 5, 2019 Council approves Plans and Specifications and orders Advertisement for Bids; Declares Costs to be Assessed and Calls for Hearing on Assessment. APRIL 2, 2019 Receive Contractor Bids. APRIL 16, 2019 Final Assessment Hearing. Council Orders the Improvement (4/5 th vote); accepts Bids and awards Contract; and adopts the Final Assessment Roll. MAY 15, 2019 Conduct Pre‐Construction Meeting and issue Notice to Proceed. SEPTEMEBER 28, 2019 Substantial Completion. NOVEMBER 2, 2019 Final Completion. CITY OF LAKE ELMO, MINNESOTA 2019 STREET AND UTILITY IMPROVEMENTS PROJECT NO. 2018.130 DATE RECEIVED: NOVEMBER 8, 2018 Consulting Firm Total Engineering Project Management P&S Bidding Construction Bolton & Menk, Inc.Without Bordners watermain $163,091 $3,576 $89,326 $2,395 $67,794 With Bordners watermain $182,811 $3,576 $101,482 $2,395 $75,358 TKDA, Inc.Without Bordners watermain $117,700 $3,900 $88,000 $1,900 $23,900 With Bordners watermain $128,800 $3,900 $98,210 $1,900 $24,790 SEH, Inc.Without Bordners watermain $150,200 $4,100 $94,600 $3,100 $48,400 With Bordners watermain $162,925 $4,100 $100,654 $3,100 $55,071 PROPOSAL FEE SUMMARY 2019 36th and 37th Streets North, Irwin Avenue Improvements Lake Elmo, Minnesota Public Hearing Written Comments November 13, 2018 Ray & Glenda Strege 8808 36th St N Lake Elmo MN 55042 S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 2 The 36th and 37th Streets North pavements have reached the end of their useful life. If replaced, removal and replacement in kind is recommended, adhering to the Valley Branch Watershed District’s (VBWD) Best Management Practices (BMP). The Feasibility Report recommended solution for the decades-old storm water problem at 8929 36th Street North appears to be feasibile. Other parts of the project need further evaluation. Too many “red flags” currently remain. City Council authorization of additional preliminary engineering without authorizing detailed plans and specifications is recommended in order to address basic, unresolved issues before proceeding with the most expensive phase of preconstruction—detailed design. If some of these issues remain after proceeding into the design phase, correction could be more expensive than if addressed sooner. Implementing the Feasibility Report proposed development will cause the neighborhood to negatively, and substantially, deviate from the VBWD Best Management Practices that follows. For 45 years the Kenridge Addition has complied with the Valley Branch Watershed District’s (VBWD) Best Management Practices (BMP): Encourage stormwater infiltration through the use of curbless road designs and overland drainage conveyance systems. On low-traffic streets, narrow the pavement and allow grass shoulders to function as an occasional parking lane. S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 3 Implementing the Feasibility Report recommendations will cause flooding worse than that which was experienced from 1975 to 1995 to the four private properties on the west end of 36th and 37th Streets. Between 1975 and 1995, the homes at 8808 36th Street and 8801 37th Street were flooded seven times during spring thaws or heavy rains. This included flooding of the septic systems on some occasions, which caused sewage to back up into the lower levels of the homes. Flooding between 36th and 37th Streets at Irwin Avenue. The flooding situation was alleviated in 1995 when three apron inlets were piped into the Valley Branch Watershed District Storm Sewer manholes at the Irwin Avenue 36th & 37th Street intersections manholes. The Feasibility Report recommended channeling storm and spring thaw runoff through a series of curbs, gutters, and storm sewers, and then retarding the water flow in an artificial infiltration area in the 8808 36th Street right-of-way. This will bring a larger area of water, faster, into the artificial infiltration area, where it will be retarded. This will cause the water to overflow onto private property. As stated previously, this will cause flooding worse than that which was experienced from 1975 to 1995. Correction of the resulting private property flooding after construction is completed will be expensive and time consuming. The obvious correction would be to return to that which worked previously—curbless roads, overland drainage, narrow pavements and grass shoulders functioning as occasional parking lanes. The correction would require removal of curb, gutter, storm sewers, and artificial infiltration areas—an expensive correction. Neither the 5-year storm nor the 100-year storm has resulted in the worst flooding to the properties on the west end of 36th and 37th Streets. Rather, it has been the spring thaws that have caused the worst flooding. A computer model will likely not provide as accurate of a prognostication of flooding to private properties as historical information. Multiple factors affect the amount and rate of spring thaw runoff: Soil moisture Snow depth and water content Rate and duration of temperature rise about freezing Amount of concurrent sunshine Amount of rainfall occurring concurrently with the above The best case study available for the 36th and 37th Streets project is the 45-year Kenridge history. Past behavior is the best predictor of future behavior. Author unknown. S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 4 Removing a natural turf infiltration area and replacing it with an artificial infiltration area is basically flawed. The Feasibility Report recommends channeling several acres of runoff into an artificial infiltration area of less than 0.1 acre and retarding the outflow. This will result in the flooding of the adjacent private properties. No infiltration area has been in use in Lake Elmo for more than three years. Infiltration areas can be especially problematic. While they make sense in concept, they have not been around long enough for engineers to determine how they function in the long term. What I've seen on the projects we've designed is that major storm events, ones that carry higher levels sediment in their run off, will clog the bio material or geofabric that is installed within the basin. I've personally seen several projects where we've had to correct initial designs as the basins simply failed to drain. (Problem at airports when geese and ducks congregate in pond areas.) Most of those problem projects have had clayey soil. For infiltration basins, there is no way to "maintain" those areas when performance degrades. Only way to improve is to excavate and reinstall. — Paul R. Strege, P.E. Infiltration area in use for 4 years (Note sediment build-up) S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 5 Without adequate and timely preventative maintenance, a 50-year pavement life expectancy is a myth. There has not been adequate, consistent, and timely pavement maintenance within the Kenridge Addition during the past 43 years. In addition to pavement crack sealing and seal coating, the proposed project will also require maintenance of the curb and gutter, storm sewer, subdrain systems, and artificial infiltration areas, adding significantly to the City’s preventative maintenance costs. Deer Pond Trail and Court demonstrate that needed preventive maintenance is not occurring. These two streets have received no preventative maintenance since they were constructed in 2014. Cracks have not been sealed, water has run into these cracks compromising both the bituminous pavement and aggregate base. Debris accumulates in the gutters and catch basins. Maintenance of the storm drain and pavement subdrain systems is also questionable. Without preventative maintenance, the proposed Feasibility Report pavement system could deteriorate faster than the simple VBWD Best Management Practices for low traffic streets infrastructure. Curb and gutters, along with partially clogged catch basins, storm sewers, and artificial infiltration areas, will hold water on the pavement surface longer, allowing more water to enter the aggregate base and subbase. This will cause an erosion of the base course aggregate, followed by pavement cupping and secondary cracking, leading to pavement raveling between the cracks. A saturated subbase would also reduce pavement structure strength. Deer Pond Court 2014 (Less than 1-month old) S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 6 The City needs to determine if it truly desires a “50-year pavement.” If so, a major pavement maintenance program and budget needs to be established and perpetuated each year. A “50-year pavement life” will only be wishful thinking without adequate pavement and ancillary infrastructure maintenance every year. Deer Pond Court 2018 (4 years old) Random cracking. Sinking pavement. S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 7 Deer Pond Court 2018 (4-years old) Random Bituminous Cracking Along Concrete Curb Deer Pond Trail & Court Intersection 2018 (4 years old) Debris on catch basin. Random cracking not sealed. S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 8 Deer Pond Trail 2018 (4-year old pavement) Looking Uphill Random crack is not sealed. Damp pavement (darker color) on uphill side of crack, dry pavement (lighter color) on downhill side, indicating that water is running into the crack. S:\City Council\City Council Packets\2018\11-20-18\2019 Street Improvements\2019 Hearing Written Comments.doc 9 A pavement subdrain system is not needed and could actually accelerate deterioration of the pavement structure if the subdrains are not adequately maintained in a timely manner. The Feasibility Report states: Due to the presence of frost susceptible subgrade soils, the geotechnical report further recommends the placement of a sand subbase drainage layer. The geotechnical report actually stated: Local subgrade correction could be done as needed, or subgrade strength limitations could be offset with thicker pavement sections, but the confidence level of performance success would be reduced versus the sand subbase improvement approach. I have not observed any frost heaves in the 36th Street pavement in 43 years and in more than 30,000 trips over the pavement. Three elements must be present for frost heave to occur: Frost susceptible materials Freezing temperatures Water The 2014 American Engineering Testing Geotechnical Exploration and Review stated that four test borings were drilled to a 6-foot depth and one boring was drilled to an 11-foot depth. The water level was not reached in any of the borings. Without water, frost heaves cannot occur. This historical pavement performance information should enhance the confidence level, thereby allowing consideration of less complex pavement substructures. In general, the simpler, the better. Increasing the aggregate base depth could be more cost effective than constructing a more complex sand subbase and pavement subdrain system. The simpler design would also require less future maintenance expenditure. The original 36th and 37th Streets construction and preventative maintenance was minimal, yet the pavements have served the residents for 45 years. To the extent possible, this same simplicity should be incorporated into the current project. “Red flag” items should be addressed and/or resolved before entering into detailed design. STAFF REPORT DATE: November 20, 2018 REGULAR ITEM #15 TO: Honorable Mayor and City Councilmembers FROM: Sue Iverson – Finance Director AGENDA ITEM: Redemption of the Outstanding G.O. Refunding Bonds, Series 2009A REVIEWED BY: Kristina Handt – City Administrator BACKGROUND: The City Council issued $1,050,000 General Obligation Refunding Bonds, Series 2009A, dated May 1, 2009. The bonds have a call provision which allows the City the option to prepay the bonds on December 1, 2017 and on any date thereafter. ISSUE BEFORE THE CITY COUNCIL: Should the City Council call $150,000 of the outstanding bonds maturing in years 2019 through 2021? DISCUSSION: Annually the Finance Director and the City’s Financial Consultant review the City’s outstanding debt issues and reserves to determine if it is desirable and in the best interest of the City to call a debt issue. It has been determined that the 2009A series can be called and that the City has adequate reserves in the water fund to call this issue. By calling this now it would remove the issue from the City of Lake Elmo’s balance sheet as of December 31, 2018. The Finance Committee will be considering this and making a recommendation at its meeting prior to the City Council meeting. The City’s Financial Consultant, Tammy Omdal from Northland, will be present to answer any questions the Council may have. FISCAL IMPACT: The outstanding balance of the bonds is $150,000 plus accrued interest. There are adequate funds in the Water Fund to call this bond and reduce debt. RECOMMENDATION: 1) Motion to adopt Resolution 2018-132, a resolution calling for the redemption of the outstanding General Obligation Refunding Bonds, Series 2009A. 2) Motion to amend and then adopt Resolution 2018-132, a resolution calling for the redemption of the outstanding General Obligation Refunding Bonds, Series 2009A. 3) Do not adopt Resolution 2018-132 ATTACHMENTS: Resolution 2018-132 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF LAKE ELMO, MINNESOTA Held: November 20, 2018 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lake Elmo, Washington County, Minnesota, was duly called to order on November 20, 2018, at 7:00 P.M. The following members were present: and the following members were absent: Member __________ introduced the following resolution and moved its adoption: RESOLUTION 2018-132 RESOLUTION CALLING FOR THE REDEMPTION OF THE OUTSTANDING GENERAL OBLIGATION REFUNDING BONDS, SERIES 2009A WHEREAS: A. The City Council of the City of Lake Elmo, Minnesota issued $1,050,000 General Obligation Refunding Bonds, Series 2009A, dated May 1, 2009; and B. All of said bonds maturing or subject to mandatory redemption on December 1, 2018 through 2021, inclusive, are subject to redemption, in whole or in part, and prepayment at the option of the City on December 1, 2017, and on any date thereafter at par plus accrued interest, all as provided in the resolution of the City authorizing the issuance of said bonds; and C. The City deems it desirable and in the best interest of the City to call $150,000 of the outstanding bonds maturing or subject to mandatory redemption in the years 2019 through 2021, inclusive, for redemption on December 27, 2018, in accordance with said resolution authorizing the issuance of said bonds, and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota as follows: 1. $150,000 of the General Obligation Refunding Bonds, Series 2009A, dated May 1, 2009, of the City of Lake Elmo, Minnesota, maturing or subject to mandatory redemption in the years 2019 through 2021, inclusive, shall be redeemed and prepaid on December 27, 2018, at 100% of their principal amount plus accrued interest for each such bond called. 2. The City Administrator is hereby authorized and directed to give mailed notice of call to the bank where said bonds are payable and said bank shall provide such notice to the holders of the bonds as may be required by law. Said notice shall be in substantially the attached form. 3. The City Administrator is hereby authorized and directed to deposit with the bank where said bonds are payable prior to said call date sufficient funds to pay all principal and interest due on the bonds as of the call date. The motion for the adoption of the foregoing resolution was duly seconded by member __________ and upon a vote taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF LAKE ELMO I, the undersigned, being the duly qualified and acting City Administrator of the City of Lake Elmo, Washington County, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the preceding extract of minutes of a meeting of the City Council of said City held on the date therein indicated with the original minutes thereof on file in my office and that the same is a full, true and correct transcript thereof insofar as said minutes relate to the topic described in the title of the resolution set forth in the extract. WITNESS my hand officially and the official seal of the City on November 20, 2018. ____________________________________ City Administrator (SEAL) NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION REFUNDING BONDS, SERIES 2009A DATED: MAY 1, 2009 CITY OF LAKE ELMO, MINNESOTA NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Lake Elmo, Minnesota, there have been called for redemption and prepayment on DECEMBER 27, 2018 those outstanding bonds of the City designated as General Obligation Refunding Bonds, Series 2009A, dated May 1, 2009, maturing or subject to mandatory redemption in the years 2019 through 2021, inclusive, totaling $150,000 in principal amount and with the following CUSIP numbers: Maturity Principal Amount CUSIP 2019 $50,000 509624HY1 2021 100,000 509624HZ8 The bonds are being called for redemption at a price of 100% of their principal amount plus accrued interest to December 27, 2018, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment to Northland Trust Services, Inc., 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402, on or before December 27, 2018. Dated: November 20, 2018 BY ORDER OF THE CITY COUNCIL /s/ Kristina Handt City Administrator Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time of the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. Additional Information may be obtained from: NORTHLAND SECURITIES, INC. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 Attn: Public Finance Phone: 612-851-5900 or 800-851-2920 STAFF REPORT DATE: November 20, 2018 REGULAR ITEM #: 16 TO: Mayor and City Council FROM: Jake Foster, Assistant City Administrator AGENDA ITEM: 2019 LMCIT Renewal BACKGROUND: The decision to waive, or not waive the statutory municipal tort limits for LMCIT members is typically required to be made by the members governing body. At the November 21, 2017 meeting, Council provided authorization to elect not to waive the statutory municipal tort limits. If the member does not waive the statutory tort limits, an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits apply regardless of whether the city purchases the optional excess liability coverage. If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $2,000,000 for a single occurrence. (Under this option, the tort cap liability limits are waived to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2 million.) The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Additionally, the 2016 special underwriting conditions will be removed for the City’s January 1, 2019 renewal. The special underwriting conditions raised the City’s deductible to $200,000 from $500 for liability and land use claims. LMCIT then lowered the special underwriting conditions deductible from $200,000 to $100,000 for the 2018 renewal siting improvement amongst Council and related to staff turnover. Upon additional progress regarding these matters, and limited losses, LMCIT will remove these conditions entirely for 2019. As Council approved the increase of the deductible to $1,000 last year, if conditions are kept consistent, the liability and land use deductible will be $1,000 down from $100,000. ISSUE BEFORE COUNCIL: Should the Council provide authorization for the City to not waive the municipal tort limits for liability coverage from LCMIT and maintain the $1,000 deductible for Property and Liability coverage? PROPOSAL DETAILS/ANALYSIS: Staff recommends that Council elect not to waive the statutory municipal tort limits, and approve the Liability Coverage Waiver Form as such. Staff also recommends maintaining the $1,000 deductible for the LCMIT property and liability coverage as it was increased in 2017 for 2018 Property and Liability coverage. FISCAL IMPACT: As referenced above, if the City maintains the same deductible, the liability and land use claims will carry a deductible of $1,000. If the Council does not waive the statutory tort limits, an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. If Council waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $2,000,000 for a single occurrence. OPTIONS: Liability Coverage – Waiver Form: 1) Waive statutory municipal tort limits 2) Do not waive statutory municipal tort limits Property/Liability Deductible: 1) Maintain current deductible for property/liability coverage 2) Increase deductible for property/liability coverage 3) Decrease deductible for property/liability coverage RECOMMENDATION: “Move to approve maintaining the current $1,000 deductible for the City’s property and liability insurance, and authorize election to not waive the statutory tort limits.” ATTACHMENTS: • LMCIT’s Liability Coverage – Waiver Form LIABILITY COVERAGE – WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before the member’s effective date of coverage. Return completed form to your underwriter or email to pstech@lmc.org. The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: • If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. • If the member waives the statutory tort limits and does not purchase excess liability cove rage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit i s $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LMCIT Member Name: __________________________________________________________________________ Check one: o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. o The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member’s governing body meeting: __________________________________________________________ Signature: _______ Position: _______________ STAFF REPORT DATE: November 20, 2018 CONSENT AGENDA ITEM: Sidewalk Snow Removal Ordinance Amendment SUBMITTED BY: Rob Weldon, Public Works Director REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: The Council discussed changes to the current city ordinance relating to the timing of snow removal from public sidewalks during the November 7, 2018 City Council Meeting. Staff has included an amended ordinances which currently falls within Chapter 96, Nuisances affecting Peace and Safety section of the City Code and is proposing an additional language be added to the Streets and Sidewalks, Chapter 93, of the city code to further cover the intent of sidewalk sow removal. ISSUE BEFORE COUNCIL: Should the City Council amend the existing ordinances related to snow removal from public sidewalks? PROPOSAL DETAILS/ANALYSIS: Included in your packet is a redlined ordinance to show the proposed changes to Chapter 96, along with additional language to be included in Chapter 93 of the City Code. Both ordinances are consistent in language and directly address the removal of snow from public sidewalks abutting city streets. OPTIONS: • Approve amendment of City Code as it relates to sidewalk snow removal • Amend and approve amendment of City Code as it relates to sidewalk snow removal • Deny amendment of City Code as it relates to sidewalk snow removal RECOMMENDATION: “Motion to approve Ordinance Amendment 08-216 amending Chapters 96 and 93 regarding Snow Removal from Sidewalks.” ATTACHMENTS: • Ordinance Amendment 545010v1 SJS LA515-1 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 08-216 AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE OF ORDINANCES BY AMENDING CHAPTERS 96 AND 93 REGARDING SNOW REMOVAL FROM SIDEWALKS SECTION 1. The City Council of the City of Lake Elmo hereby amends Title IX, Chapter 96, Nuisances, Section 96.03, paragraph (A)(23) by deleting the stricken language and adding the underlined language as follows: § 96.03 PUBLIC NUISANCES AFFECTING PEACE AND SAFETY. (A) The following are declared to be nuisances affecting peace and safety. (23) Snow on streets and sidewalks. All snow and ice not removed from public sidewalks 12 24 hours following after the termination of any snow and or ice formation has stopped precipitating. Snow plowed or shoveled into a public street shall also be declared a nuisance; SECTION 2. The City Council of the City of Lake Elmo hereby amends Title IX, Chapter 93, Streets and Sidewalks, by adding a new Section 93.50, Sidewalks which shall read as follows. SIDEWALKS § 93.50 SIDEWALK SNOW REMOVAL. (A) Removal of snow and ice from sidewalks. The owner or occupant of any property within the city’s corporate limits that fronts upon any public street that has an abutting sidewalk must remove any snow or ice from the sidewalk within 24 hours following the termination of an y snow or ice formation. The owner or occupant of the property abutting the sidewalk must keep the abutting sidewalk reasonably clear and free of any snow or ice. (B) Nuisance. Failure by the owner or occupant of the property abutting the sidewalk to comply with this section shall constitute a nuisance and the nuisance may be abated by the city in accordance with Chapter 96 of the city code. SECTION 3. Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. 545010v1 SJS LA515-1 SECTION 4. Adoption Date. This Ordinance 08-216 was adopted on this ______ day of ___ 2018, by a vote of ___ Ayes and ___ Nays. LAKE ELMO CITY COUNCIL _________________________________ Mike Pearson, Mayor ATTEST: _________________________________ Julie Johnson, City Clerk This Ordinance 08-216 was published on the ___ day of _________________, 2018. STAFF REPORT DATE: November 20th, 2018 REGULAR MOTION TO: City Council FROM: Ben Prchal, City Planner AGENDA ITEM: Revision of Parks Commission Ordinance. Chapter 32 REVIEWED BY: Kristina Handt – City Administrator BACKGROUND: Upon an email from the City Administrator back in February about Commission procedure, a member of the Parks Commission asked the City to review the Parks Commission Ordinance and that it either be followed or revised as needed. The City Administrator agreed that a review of the ordinance would be a good idea. ISSUE BEFORE THE COUNCIL: Would the Council like to accept the recommended amendments to Chapter 32 as it pertains to the Parks Commission? PROPOSAL: In preparation of review of Lake Elmo’s Parks Commission Ordinance, staff gathered examples from other Washington County communities and did some comparisons and analysis. Staff has proposed amendments to the ordinance in order to shorten and further clarify the objectives of the chapter. There are many corrections to the chapter but staff has chosen to highlight some of the amendments below. In addition to the amendments, staff would propose creating a set of bylaws for the Parks Commission. If the commission is supportive of having bylaws, draft bylaws could be brought to them at a future meeting for their review. 32.082 Composition Comparable communities have 5 - 7 voting members. Staff also noticed that Lake Elmo code restricts members to two consecutive terms. Placing term limits was not a trend in the surveyed communities. Because of this this language is being proposed for removal from the City Code. 32.085 Officers There is no longer a need to elect a secretary for the purpose of keeping minutes. This task has been removed from the commission since there are staff members who have been hired to perform that duty. 32.086 Annual Meeting The current ordinance reads “The commission shall hold an annual meeting the first Monday of January…” Staff no longer believes this to be a necessary requirement, and if strictly adhered to may become unnecessarily burdensome. Instead the proposed language leaves it as flexible as requiring election to happen during the first available meeting. I have underlined the sections relating to the Hugo 7 voting members Stillwater 7 voting members with 1 non-voting council representative Oak Park Heights 5 voting members with 2 alternates Mahtomedi 7 voting members Oakdale 7 voting members Parks Commission Page 2 election of officers from the other communities; if needed their code allows them a degree of flexibility which ours does not. This has also been moved to 32.088 Meetings. Hugo “…shall be appointed annually from the membership…” Stillwater “At the beginning of each calendar year the commission must select a chairperson.” Oak Park Heights A chair and vice chair shall be elected every year. (Paraphrased section 205.02 Composition) Mahtomedi “At its first meeting every April, the members of the Park Commission shall appoint...” Oakdale “…at its first meeting of each year.” 32.087 Annual Work Plan This section has been completely removed and is being abbreviated to section 32.097 Powers and Duties. 32.088 Regular Meetings and 32.089 Special Meetings Staff believes there is no need to have two sections dedicated to meetings and special meetings. Combining the sections makes the code more useable while still making note of how to proceed if a special meeting is needed. Many of the other communities do not address special meetings. 32.094 Agenda This is not something that should be kept in an ordinance. Instead it is more procedural and should be regulated through bylaws. 32.095 Records It would be ideal to have minutes and outcomes delivered within 7 days to the Council and public. Though, it seems unreasonable considering the potential for vacation, sick time, etc. Instead minutes are to be approved at a future meeting and recommendations and findings will still be presented to the Council at the next regular meetings. Including language that references a future meeting is consistent with the language used for Council meeting minutes. FISCAL IMPACT: Staff does not foresee a fiscal impact with the proposed ordinance changes. RECOMMENDATION AND STAFF COMMENTS: Staff City staff is supportive of the amended changes too Chapter 32 as it pertains to the Parks Commission. In terms of how positions should be reduced, Staff recommends removing the two alternate positions at the end of the year. Parks Commission Comments The commission did not amend any section of the proposed ordinance except what was necessary to make the language cohesive. The Parks commission recommends approval of the proposed ordinance 5-2. “Motion to approve amendments to chapter 32 as outlined in Ordinance 08-217” ATTACHMENTS: • Proposed Ordinance. • Cities used for comparison o Hugo, Mahtomedi, Oak Park Heights, and Oakdale CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 08-XX217 AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE OF ORDINANCES BY AMENDING CHAPTER 32 TO REDUCE THE NUMBER OF COMMISSIONERS AND SIMPLIFY THE CHAPTER. SECTION 1. The City Council of the City of Lake Elmo hereby amends Title III, Chapter 32, City Organizations, Sections 32.080-32.097, Parks Commission by amending the following language: § 32.080 ESTABLISHMENT. A Parks Commission of the city is hereby continued. (1997 Code, § 225.01) § 32.081 PURPOSE. The Parks Commission is established to review and make recommendations to the Council on the future development of city parks, including the establishment of and improvements to the parks, and to make recommendations to the Council on policies governing the maintenance and public use of the parks within the city. (1997 Code, § 225.02) (Am. Ord. 08-092, passed 10-15-2013) § 32.082 COMPOSITION. The Parks Commission shall consist of 7 voting members and 2 alternate members. The voting members shall be appointed by the City Council for a 3-year term. Voting members may not serve more than 2 consecutive terms. Appointment to an additional term(s) will be considered with the available applicant pool. Alternate members shall be appointed to serve until there is a vacancy on the Parks Commission. The City Council shall appoint a first alternate and a second alternate who shall become voting members in the order of their appointment. In its discretion, the City Council may adjust the lengths of terms of office for Parks Commission members so that no more than one-half of the terms expire in any given year. (1997 Code, § 225.03) (Am. Ord. 97-148, passed 2-15-2005; Am. Ord. 08-038, passed 1-25-2011) § 32.083 QUALIFICATIONS. Each member and alternate member shall be a resident of the city. Each member shall be a resident of the City and Wwherever possible, Commission members should represent all geographical areas of the city and a cross-section of the population of the city at the time of appointment. (1997 Code, § 225.04) § 32.084 REMOVAL. Any member or alternate member may be removed by a 4/5 majority vote of the Council, for cause. Cause shall include but not be limited to having more than 3 consecutive unexcused absences or being absent from more than 1/3 of the meetings in any 1 calendar year. The Council may consider exceptional circumstances when applying this rule. (1997 Code, § 225.05) § 32.085 OFFICERS. The Commission shall elect a Chairperson, and a Vice Chairperson, and may elect a Secretary from among its appointed members at the annual meeting each year beginning of the New Year, for a term of 1 year. The Chairperson shall preside at all meetings of the Commission, if present, and shall perform all other duties and functions assigned by the Commission or the Council. The Vice Chairperson shall perform these duties in the absence of the Chairperson. If a vacancy occurs in the Chairperson's office, the Vice Chairperson shall assume the Chairperson's duties for the remainder of the year; and a new Vice Chairperson shall be elected by the Commission at a special election to be held at the next regularly scheduled Commission meeting., after at least 2-days written notice to each Commission member. A recording Secretary shall be appointed by the Council to take and keep the minutes and records of the Commission. (1997 Code, § 225.06) § 32.086 ANNUAL MEETING. The Commission shall hold an annual meeting the first Monday in the month of January in each year, unless the first Monday is New Year's Day, in which case the annual meeting shall be held at the first regularly scheduled meeting of the Commission in the month of January in each year. The meeting shall be devoted to the election of officers and other business as shall be scheduled. (1997 Code, § 225.07) § 32.087 ANNUAL WORK PLAN. The Parks Commission shall meet with the Council at their first meeting in April each year to develop an annual work plan, including a list of projects, points of interaction on projects, programs, and goals for the year. (1997 Code, § 225.08) § 32.0868 REGULAR MEETINGS. (A) The first available meeting of the New Year, with a quorum, shall be devoted to the election of officers and other business as scheduled. (AB) The date, place, and time of regular meetings of the Parks Commission will be specified by the Council as a policy statement that will be included in the city's policy book. The intent of this section is to allow the Parks Commission meetings to be set by city policy rather than by ordinance. Regular Commission meetings shall be held monthly, or more often as required. The time and place of all regular meetings shall be posted in the City Hall. The chairperson may call special meetings following three days’ posted notice at the City Hall. (BC) No action shall be taken in the absence of a quorum, except to adjourn the meeting to a subsequent date. A regular meeting may be canceled or rescheduled by the Commission at a prior meetingChair if there are no scheduled agenda items on the Thursday prior to the meeting. All action taken by the Commission shall be by the affirmative vote of a majority of the members present. (1997 Code, § 225.09) § 32.089 SPECIAL MEETINGS. (A) Special meetings of the Commission shall be held in the City Hall at a time and place designated or at a public place at a time designated and shall be called by the Chairperson. (B) Upon the written request of at least 4 members, the Chairperson shall be required to call a special meeting to be held within 7 days of the request. (C) Written notice of the special meeting shall be given to all members not less than 72 hours in advance of the meeting. (1997 Code, § 225.10) § 32.08790 REQUIRED NUMBER OF MEMBERS PRESENT TO CONDUCT MEETINGS QUORUM. A meeting can be conducted if 54 members of the Commission are present. (1997 Code, § 225.11) (Am. Ord. 97-114, passed 9-17-2002) § 32.08891 VOTING. Each member attending any meeting shall be entitled to cast 1 vote. Voting shall be by voice vote. If any member has a personal interest of any kind in the matter then before the Commission, the member shall disclose this interest and be disqualified from voting upon the matter. The Secretary shall record in the minutes that no vote was cast by the member. Alternate members shall be entitled to cast 1 vote in the absence of any member. The second alternate shall be entitled to cast 1 vote in the absence of any 2 members. (1997 Code, § 225.12) § 32.092 PROCEEDINGS. At any regular meeting of the Commission, the following shall be the regular order of business: (A) Roll call; (B) Minutes of the preceding meeting; (C) Public hearings as scheduled on the agenda; (D) Old and new business as scheduled on the agenda; (E) Communications; and (F) Adjournment. (1997 Code, § 225.13) § 32.08993 RULES OF PROCEDURE. All meetings of the Commission shall be conducted in accordance with the Revised Robert's Rules of Order. (1997 Code, § 225.14) § 32.094 AGENDA. The Chairperson shall cause all items to be considered at any meeting to be placed on a written agenda by the City Administrator. The City Administrator shall advise the Chairperson of any matters the Commission must consider by Council directive, ordinance, or statute and shall have prepared and mailed a written agenda of all meetings to all Commission members, the Council, and the public, no less than 4 days before each meeting. (1997 Code, § 225.15) § 32.0905 RECORDS. Each formal action of the Commission shall be embodied in full upon the minute book as a formal motion or resolution after an affirmative vote as provided in this section. The minutes of each meeting shall be provided to each member, the Council, and the public no more than 7 days after the date of each meeting. approved at a future meeting. The recommendations and findings of the Commission shall be presented to the Council at the next regularly scheduled Council meeting. The records of meetings and actions and recommendations shall be transmitted to the City Administrator Clerk for keeping and distribution. (1997 Code, § 225.16) § 32.0916 TRAINING. Commission members shall be encouraged to avail themselves of training courses offered by the city, the state, and other government and public training agencies and the Council shall budget for the reimbursement of expenses incurred in training each year. (1997 Code, § 225.17) § 32.0927 POWERS AND DUTIES. (A) The Commission shall prepare, hold hearings on, and recommend to the Council the plans, programs, and policies as it deems necessary to carry out the purposes of §§ 32.080 et seq. (B) The powers shall include but not necessarily be limited to studying and recommending to the Council on the following: (1) Land acquisition for park, trails, and recreation purposes; (2) Plans for major improvements in city parks and trails; (3) Rules and requirements for conduct of and in parks and recreation facilities; (4) Plans and programs relating to the design and programming of city parks; (6) Development of a Capital Improvement Plan for the City’s parks and recreation system; (7) Annual Work Plan; and (8) The other plans and programs as may be assigned from time to time. (C) The Commission shall not be considered a park board under Minnesota Statutes and shall have no powers to acquire or lease land, employ personnel, enter into contracts or leases, or any similar powers authorized a park board by Minnesota Statutes. (1997 Code, § 225.18) SECTION 2. Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. SECTION 3. Adoption Date. This Ordinance 08-XX 217 was adopted on this ______ day of ___ 2018, by a vote of ___ Ayes and ___ Nays. LAKE ELMO CITY COUNCIL ________________________________ Mike Pearson, Mayor ATTEST: ________________________________ Julie Johnson, City Clerk This Ordinance 08-____ was published on the ____ day of ___________________, 2018. DIVISION 3. - PARKS, RECREATION AND OPEN SPACE COMMISSION Sec. 2-195. - Purpose and intent. The city recognizes the importance of adequate, useful and attractive parks and open areas to promote public health and fitness, provide for leisure activities, maintain property values and sustain a high quality of life in the community. Both a master park plan and a park development fund have been created for the city to provide for park development. In order to assist the city council in setting park development and open space preservation policies, establish design and operating standards for the city 's park system, efficiently allocate resources, and implement the city 's master park plan, the parks, recreation and open space commission is hereby established for the city. (Prior Code, § 185-020) Sec. 2-196. - Duties and responsibilities. The city parks, recreation and open space commission shall provide the city council recommendations and advice for the development, maintenance and operation of parks, recreation and open space programs in the city. The commission shall have the following duties: (1) Periodically review and make recommendations to the city council on necessary, prudent, or desirable changes to the city's master park plan and parks, recreation and open space policies. (2) Monitor, and annually report to the city council regarding the city's success in implementing its master park plan and the city's contribution toward meeting the community's parks, recreation, and leisure needs. (3) Prepare, and annually update for city council approval, a five-year capital improvement plan for the development of the city's parks and recreation system. (4) Annually prepare and recommend to the city council a parks and recreation capital improvement budget for the following year. (5) Prepare for city council approval, standards for park development to assure the public's safety, provide for adequate service, create a unified and identifiable design for the city's parks, and promote their efficient maintenance and operation. (6) Recommend to the city council necessary, prudent, and desirable rules and regulations for park use to ensure the public's safety, enhance system use, discourage vandalism, maintain cost-effective operations, and to resolve conflicts in park use. (7) Coordinate the development and operation of recreation programs with governmental agencies, civic groups, and other organizations promoting or assisting recreation activities in the community. (8) Communicate the city's parks and recreation goals, plans and programs to the public. (9) Perform such other duties regarding the city's parks and recreation system, as may be requested by the city council from time to time. (Prior Code, § 185-040) Sec. 2-197. - Organization and membership. (a) Members appointed. The parks, recreation and open space commission shall consist of seven members, all eligible voters in the city. All members shall be appointed by the mayor with city council approval. Consideration in making appointments shall be given to having one or more residents residing in each ward and school district of the city appointed to the commission, though representation from each such section of the city is not required. (b) Terms of service. All members appointed by the mayor with council approval shall be appointed for staggered three-year terms. (c) Removal from office. Commission members may be removed from office by the city council for: (1) Changing their place of residence to a location outside the corporate boundaries of the city, or otherwise not meeting the requirements for office; (2) Failure to perform their official duties, including not attending called and noticed meetings; (3) Behavior disruptive to the good order and efficiency of the commission; (4) Committing an act of moral turpitude. (d) Vacancies. Appointments made to fill a vacancy on the commission that occurs during a normal term of office shall be made for the balance of the term remaining. (e) Officers. A chairperson and vice-chairperson shall be appointed annually from the membership of the commission by the mayor, with approval of the city council. The commission may appoint a secretary, who need not be a member of the commission. The chairperson, or vice-chairperson in the absence of the chairperson, shall: (1) Preside over meetings of the commission. (2) Represent the commission, or appoint a person to represent the commission before the city council on matters pertaining to the commission. (3) Certify official written documents of the commission. (f) Individual commissioners as petitioners. No commissioner shall take part in the consideration of any matter in which he or she is the applicant, petitioner, or appellant, nor in the consideration of any action in which he or she has a direct financial interest. (g) Compensation. Commissioners shall serve without compensation. (Prior Code, § 185-050; Ord. No. 2007-411, § 1, 9-4-2007; Ord. No. 2013-467, 12-2-2013) Sec. 2-198. - Rules and procedures. (a) The commission shall adopt such rules and procedures as are consistent with this division and as may be necessary for the proper execution and conduct of their duties and responsibilities. (b) Regular meetings of the commission shall be held monthly, or more often as required. The time and place of all regular meetings shall be posted in the city hall. The chairperson may call special meetings following three days' posted notice at the city hall. (Prior Code, § 185-060; Ord. No. 2013-467, 12-2-2013) Sec. 2-199. - Staffing. In order to allow commission members to concentrate on policy development and issues of general concern, and relieve them of administrative detail, the city council shall provide adequate staff to assist the parks, recreation and open space commission with their assigned duties. (Prior Code, § 185-070) State Law reference— Open meeting requirements, Minn. Stats. ch. 13D. Secs. 2-200—2-221. - Reserved. Chapter 2 - 6 charge of all physical evidence relating to the cause of the fire and pursue the investigation to its conclusion. A report shall be submitted to the Fire Chief of all facts and findings relative to each investigation. 10. Mutual Aid and Automatic Aid Agreements. The City Council may enter into such mutual aid and automatic aid agreements it deems appropriate, consistent with the Fire Department’s obligations under this Chapter. Such agreements shall be premised on the condition that the Fire Department shall not send personnel, equipment, and apparatus for fire protection to property owned, leased, or represented by persons, organizations or political subdivisions outside the City if the Fire Chief determines that such equipment and manpower is needed for service within the City. 11. Budget. The Fire Chief shall submit to the City Administrator an outline of the Fire Department’s work program for the current budget period. 12. Compensation. Members of the Fire Department shall receive compensation for services rendered at a rate to be established by the City Council. 2.09 ANIMAL CONTROL OFFICER. The City Council may designate, appoint, hire, or contract with such persons as they deem necessary and appropriate to act as Animal Control Officers to enforce and administer Chapter 3 of this Code. The Animal Control Officer is authorized to issue citations and take all other necessary actions in accordance with Minnesota Statutes to enforce and administer the provisions of Chapter 3 and other relevant provisions of this Code. 2.10 PARK COMMISSION. 1. Appointment. The City Council shall appoint a Park Commission made up of seven (7) members. Members shall serve a three (3) year term on the Commission. Each member of the Commission shall be a resident of the City and shall serve without compensation. At its first meeting every April, the members of the Park Commission shall appoint from among their membership a chairperson for a term of one (1) year. The chairperson shall preside at all meetings of the Commission if present and shall perform all other duties and functions assigned by the Commission or the City Council. The members of the Commission may appoint from among the membership a vice-chairperson to act for the chairperson during his or her absence. 2. Vacancies. If a commission member is absent from three (3) meetings during a one (1) year period, unless excused in advance by the Chairperson, that commission member will be considered to have abandoned their position, creating a vacancy. In the event of a vacancy, the City Council shall appoint a successor to fill the vacant position for the remainder of the unexpired term. Chapter 2 - 7 3. Meetings. The Park Commission shall meet at such times and places as it shall designate and may adopt and amend rules and procedures governing its proceedings. Unless otherwise provided, any action taken by the Commission shall be by the affirmative vote of a majority of the members present. The Commission shall keep a public record of its meetings, resolutions, findings, and reports. 4. Duties. The Park Commission shall prepare and recommend to the City Council such plans, programs, and reports as it deems necessary to carry out the purposes of this Section and to establish an integrated program for the creation, improvement, maintenance, and management of parks, parkways, and recreational facilities within the City. In furtherance of these general duties, the Commission shall: A. Review and recommend land acquisition for park and recreational purposes; B. Review and recommend plans and procedures for the construction of roadways, paths, buildings, fountains, docks, boathouses, bathhouses, refreshment booths, amusement houses, pavilions, and other necessary structures and improvements in parks; C. Recommend reasonable rules and regulations for the conduct of parks and recreational facilities, including charges and fees for public use of constructed premises; D. Recommend the purchase of necessary materials, supplies, equipment, and services to carry out the purposes of this Section; E. Recommend plans and programs relating to (i) the design of parks, parkways and public grounds; (ii) care, maintenance, and landscaping of parks, parkways and recreational facilities; and (iii) care, trimming, and removal of trees and shrubbery on public lands; F. Prepare such other plans and programs as the Commission may deem necessary and proper to carry out the provisions of this Section 5. Commission Not a Park Board. The Commission shall not be considered a Park Board under Minnesota Statutes Sections 412.491 through 412.531, and shall have no powers to acquire land, employ personnel, enter into contracts or leases, or any similar powers authorized a Park Board by Minnesota Statutes Sections 412.491 through 412.531. 1 205 AN ORDINANCE ESTABLISHING A PARKS, PLAYGROUNDS, AND RECREATION COMMISSION FOR THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA. THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA, DOES HEREBY ORDAIN; 205.01 Establishment of a Commission. A City Parks, Playgrounds, and Recreation Commission for the City of Oak Park Heights, Washington County, Minnesota, is hereby established. 205.02 Composition. That parks, playgrounds and recreation commissions shall consist of five (5) voting members. The five members shall be appointed by the City Council to serve for three (3) year terms, or as otherwise approved by the City Council. Both original and successive appointees shall hold office until their successors are appointed and shall have qualified. The City Council shall also appoint two (2) alternate members to serve as alternates who shall have the ability to fill the position of Park Commission member and cast votes in the event of absence of any member of the Park Commission. The members of the Commission shall elect one member as Chairperson and one member as Vice-Chairperson of said Commission, who shall be elected every year. Vacancies on the Commission during a term shall be filled by the City Council for the unexpired term of said vacancy. Every appointed member shall, before entering upon the disposition of his or her duties, take an oath that he or she will faithfully perform the duties of that office. Except as otherwise established by resolution of the City Council, all members of the Park Commission shall be compensated $25.00 for each month of service, but must be present at the Park Commission to qualify for such compensation. Any member of the Park Commission may be removed by the Mayor with the Consent of the City Council for cause after a hearing. The Commission shall additionally operate under the auspices of official “Park Commission By-Laws” which shall be approved by the City Council. Current By-Laws adopted October 14, 2008. 205.03 Duties. It shall be the duty of the Commission to study and recommend to the City Council: (1) the needed and necessary parks and recreational facilities in said City, and (2) also to study and recommend provisions for the utilization and maintenance of present and future facilities that may be created from time to time by the City 2 Council. Said recommendations shall then be acted upon within a reasonable length of time by the City Council. 205.04 Budget. The Parks, Playgrounds, and Recreation Commission shall propose an annual budget which shall be considered and acted upon by the City Council annually. Amended: Section 205.02. Passed October 14, 2008. Oakdale MN Code of Ordinances: Chapter 15 - Page 1 CHAPTER 15 PARKS AND RECREATION Article I Parks and Recreation Commission Article II Open Space Preservation Article III Use of Facilities Regulated Article IV Tanner's Lake Article V Dog Park ARTICLE I. PARKS AND RECREATION COMMISSION Sec. 15-01. Commission Established. A Parks and Recreation Commission for the City of Oakdale is hereby established. The commission serves as an advisory board for the City Council, City Administrator, and Recreation Superintendent. All conclusions reached by the commission shall serve as recommendations and powers of execution shall be vested in the City Council. Sec. 15-02. Functions and Duties of Commission. The Parks and Recreation Commission shall act in an advisory capacity to the City Council, City Administrator, and the Recreation Superintendent in all matters pertaining to parks and recreation planning and programming. Specific responsibilities of the commission shall be: (a) To establish plans, policies, and procedures in matters relating to the development and use of parks, trails, open space, and recreational facilities. (b) To advise and assist the City Council in planning the development and use of parks and recreational facilities. (c) To plan for the best use of the city’s natural resources with minimal adverse effect on the environment. (d) To help develop a diversity of recreational opportunities for the maximum benefit of all residents. (e) To cooperate with various athletic organizations with the city to achieve common goals related to parks and recreation. (f) To work with parks and recreation agencies outside the city, including the state, counties, schools, and municipalities to minimize duplication of services and maximize use of land and regional recreational facilities. Sec. 15-03. Composition of Commission; Appointment to Commission. The Parks and Recreation Commission shall consist of seven (7) regular members, appointed by the City Council. Four (4) serving members shall constitute a quorum. Vacancies shall be filled by City Council appointment for the remainder of the unexpired term. Resignation of Parks and Recreation members shall be submitted in writing to the City Council. At their discretion, the City Council may appoint up to two (2) student representatives to serve on the commission; such individuals shall serve in an advisory role without voting privileges and do not need to meet the residency requirements for a commissioner. (Ord. 836, 02/27/18) Sec. 15-04. Terms of Members. Members of the Parks and Recreation Commission shall be appointed by the City Council for three (3) year terms. Terms, in general, begin July 1 of each year. Members that have served on one commission for three consecutive terms shall be given the option of submitting an application to be considered for appointment to another advisory commission or to Oakdale MN Code of Ordinances: Chapter 15 - Page 2 submit an application to be considered for appointment to the same commission the following June. Exception: at the sole discretion of the City Council, seated commissioners that have served on one commission for three or more consecutive terms may be reappointed to the same commission when the continuation of their service on said commission is deemed vital to projects and/or programs under the purview of the commission. The initial term for appointments to the commission shall be staggered so that only three (3) new appointment or reappointments need to be made in any one year. (Ord. 833, 10/10/17) Sec. 15-05. Organization of Commission . The Parks and Recreation Commission shall elect from its membership, a Chairperson and Vice-Chairperson annually at its first meeting of each year. The election of Chairperson is subject to veto by the Mayor. The Parks and Recreation Commission shall adopt its own Rules of Order and Bylaws for the purpose of governing procedure. Sec. 15-06. Commission Meetings and Records. The Parks and Recreation Commission shall hold regular meetings as established in the bylaws. These meetings shall be open to the public. The Parks and Recreation Commission shall submit copies of its meeting minutes to the City Council following each scheduled meeting and shall submit periodic reports when requested by the City Council. Sec. 15-07. Removal of Commission Members. Commission members may be removed, at will, by action supported by a majority of the City Council. Also, given that the City Council expects diligence in attendance by the members of the Parks and Recreation Commission at commission meetings, excessive absences will be considered as grounds for removal from the commission. Sec. 15-08. Residency Requirement. No person appointed to represent the residents shall continue to serve on the commission once that member has taken residence outside of the corporate limits of Oakdale. A written resignation shall be submitted to the City Council in this instance. ARTICLE II. OPEN SPACE PRESERVATION Sec. 15-09. Purpose. The city recognizes that open space not otherwise designated as parkland, owned by the city is a resource that is intended to benefit, because of its status as publicly owned land, all residents of the city. City-owned open space (hereinafter “open space”) generally serves a number of functions, including conservation of natural resources and environmentally sensitive land; screening and buffering of residents from other land uses and developments; preservation of scenic vistas and rural characteristics; and recreational areas. These functions are usually best accomplished through the preservation of open space in a natural state. The following ordinance, rules and regulations are designed and intended to accomplish the purposes described herein. Sec. 15-10. Definitions. The following words and terms, whenever they occur in this section, are defined as follows: Natural State means land that is undisturbed by human intrusions, including but not limited to: construction; filling or excavation; removal or destruction of trees, shrubs or vegetation (live or dead); and activities detrimental to drainage, flood control, water conservation, erosion control, soil conservation or the preservation of wildlife. Open Space means any publicly-owned parcel or area of land or water essentially unimproved except under circumstances noted within this section and set aside, dedicated, designated or reserved for public use or enjoyment.