Loading...
HomeMy WebLinkAboutAgenda Packets - 2017/02/27CITY OF MOUNDS VIEW CITY COUNCIL MEETING AGENDA MOUNDS VIEW CITY HALL Monday, February 27, 2017 7:00 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL: Mueller, Gunn, Hull, Meehlhause 4. APPROVAL OF AGENDA 5. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 6. SPECIAL ORDER OF BUSINESS A. Presentation by the North Suburban Hospital District, represented by Board Chair Gerald Maeckelberg and General Counsel Scott Lepak, and Consideration of Resolution 8716, a Petition For Dissolution of the North Suburban Hospital District 7. COUNCIL BUSINESS A. 7:00 p.m. Public Hearing: Resolution 8721, a Resolution to Consider a Residential Kennel License to allow four (4) dogs at 8144 Pleasant View Court. Applicant: Alison Caldwell B. 7:00 p.m. Public Hearing, Resolution 8722, a Resolution to Consider a Transfer of an Off-Sale Intoxicating Liquor License from from Menbe, Inc. (doing business as ABC Liquor) to AB Liquor, LLC. C. Resolution 8723, Approving a Revised Job Description and Authorization to Advertise for a Seasonal Intern in the Public Works Department D. Resolution 8719, Accepting Bids and Awarding Contract for the Construction of the Public Works Facility E. Resolution 8720, Accept Improvements and Approve Final Payment for 2016 Sanitary Sewer Rehabilitation Project 8. CONSENT AGENDA A. Resolution 8715 Approving Amendments to Section 3.35 and Section 3.45 of the Personnel Manual, Relating to the Sick Leave Policy and the Retirement Health Savings Plan Policy, Respectively B. Resolution 8724, Approving Insurance Contribution Adjustment for Non-Union Employees C. Resolution 8717, Adopting a Post-Issuance Debt Compliance Policy D. Resolution 8718 Certifying the City of Mounds View’s Share of Indebtedness Related to the City of Spring Lake Park’s $1,090,000 General Obligation Equipment Certificates of Indebtedness, Series 2017A, the Proceeds of Which Are to be Used By the Spring Lake Park Fire Department, Inc. City Council Agenda Monday, February 27, 2017 Page 2 9. JUST AND CORRECT CLAIMS 10. APPROVAL OF MINUTES - None 11. REPORTS A. Reports of Mayor and Council B. Reports of Staff C. Reports of City Attorney 12. Next Council Work Session: Monday, March 6, 2017, at 7 p.m. Next Council Meeting: Monday, March 13, 2017, at 7 p.m. 13. ADJOURNMENT Item No: 6B Meeting Date: February 27, 2017 Type of Business: Special Order of Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Presentation by the North Suburban Hospital District, represented by Board Chair Gerald Maeckelberg and General Counsel Scott Lepak, and Consideration of Resolution 8716, a Petition for Dissolution of the North Suburban Hospital District Introduction: North Suburban Hospital District Board Chair Gerald Maeckelberg and General Counsel Scott Lepak are planning a presentation for the City Council regarding the planned dissolution of the Hospital District. The Hospital District is asking the City to approve the attached resolution petitioning for the dissolution of the hospital district. Discussion: Due to Allina’s proposed merger of Unity and Mercy hospitals, the Hospital District Board discussed the changes and possible options at its public meetings beginning on April 13, 2016. It came to the conclusion that the consolidation prevents the Hospital District from spending tax money to fund capital improvements to the Unity campus going forward from the date these changes become effective. The Hospital District's authority to make improvements to Unity is subject to the public purpose doctrine. The Hospital District must make a determination that any expenditure of tax dollars has a public (rather than private) purpose and that such tax dollars are needed for the improvement to occur. With the consolidation of operations under the Mercy Hospital - Unity Campus concept, the Hospital District determined that the five member cities should not be required to pay for a Hospital that served a broader scope of individuals than a traditional stand-alone hospital focused on the care of the residents of those five cities. The consolidation of operations also made it difficult, if not impossible, for the Hospital District to establish that the tax dollars raised by the Hospital District were needed for a specific Unity project. On September 14, 2016, the Hospital District unanimously approved a resolution stating its intention to seek dissolution because Unity is no longer a full service community hospital, and therefore the Hospital District no longer has a public purpose to spend ad valorem tax dollars to fund capital improvement projects for the building. North Suburban Hospital District Report February 27, 2017 Page 2 Recommendation: The Hospital District is asking the City to approve Resolution 8716, a resolution petitioning for the dissolution of the hospital district. If approved, and if the Hospital District Board accepts the petition, the Hospital District must do an accounting of all funds, pay off all creditors, sell off all property it owns, and then finally affect an order of formal dissolution. This is anticipated to be a lengthy process that would go well into 2017. All remaining District funds are to be sent back to the member cities. The Hospital Board has suggested that the money be divided on a per capita basis to the population of the member cities, but it is requesting the City petitioning the Hospital District for dissolution to provide input and suggest the manner of distribution in the petition. The City Council has previously suggested that the distribution of funds be based on a comprehensive accounting of all taxes paid by each member City since 1960. If the Council decides upon an alternative manner of fund distribution, the Resolution will need to be updated accordingly in Item 3 of the Now Therefore clause. Respectfully submitted, ________________________ James Ericson City Administrator Attachments: 1. No. Suburban Hospital District Q & A 2. Resolution 8716 1 RESOLUTION 8716 CITY OF MOUNDS VIEW RAMSEY COUNTY STATE OF MINNESOTA A PETITION FOR DISSOLUTION OF THE NORTH SUBURBAN HOSPITAL DISTRICT WHEREAS, the City of Mounds View is part of the North Suburban Hospital District (hereinafter referred to as the Hospital District); and WHEREAS, the Hospital District is comprised of the cities of Blaine, Fridley, Hilltop, Mounds View and Spring Lake Park; and WHEREAS, the Hospital District has been in existence for over 50 years with a focus on initially building and then providing funding for the physical improvements of Unity Hospital; and WHEREAS, Allina Health has indicated that it is moving forward with operating the Unity campus under the Mercy Hospital license while not renewing the Unity Hospital license, and intends to provide service under a “One Hospital, Two Campuses” approach; and WHEREAS, as a result of the Allina Health decision to consolidate services from Unity Hospital to Mercy Hospital, it will result in a less than a comprehensive stand alone community hospital at the newly reorganized “Mercy Hospital – Unity Campus”; and WHEREAS, the currently planned service offering at “Mercy Hospital – Unity Campus” will no longer meet or fulfill the North Suburban Hospital district’s public purpose to provide a wide range of hospital related medical services at Unity Hospital focused on citizens of the five cities comprising the Hospital District, including the residents of the City of Mounds View; and WHEREAS, on September 14, 2016, the Hospital District’s Board unanimously approved a resolution stating its intention to seek dissolution the District; and WHEREAS, the resolution of intention to seek dissolution made the finding that that the conditions for the creation and continued operation of the North Suburban Hospital District no longer exist; and WHEREAS, North Suburban Hospital District has stated it will not be able to provide tax based funding for necessary improvements to Allina Health under the combined health services approach noted as “Mercy Hospital – Unity Campus”; and WHEREAS, as the North Suburban Hospital District determined it can no longer provide funding for “Mercy Hospital - Unity Campus”, it is the determination of the City of Mounds View to petition for dissolution of the Hospital District under Minn. Stat. § 447.38. 2 Resolution 8716 Page 2 NOW THEREFORE, THE CITY OF MOUNDS VIEW HEREBY PETITIONS THE NORTH SUBURBAN HOSPITAL DISTRICT AS FOLLOWS: 1. Based upon the findings in the aforementioned recitals and findings herein, it is the determination of the City of Mounds View that the conditions for the creation and continued operation of the North Suburban Hospital District no longer exist. 2. The City of Mounds View formally petitions, directs and requests that the District Board and their staff proceed with the requirements of dissolution of the North Suburban Hospital District. 3. The City of Mounds View proposes, pursuant to the requirements of Minn. Stat. 447.38 Subdivision 1, that all funds distributed back to the member cities - upon the final disposition of all outstanding indebtedness, payment of all claims, and sale or transfer of all real and personal property owned by the District - shall be divided by the County Auditor based upon the proportional per capita population of persons residing in each member city. 4. The City Administrator is directed to transmit a certified copy of this petition for dissolution to the Board of the North Suburban Hospital District. ADOPTED by the City of Mounds View on February 27, 2017: IN WITNESS WHEREOF: ____________________ Carol A. Mueller Mayor ` City of Mounds View ATTEST: _______________________ Jim Ericson City Administrator City of Mounds View (seal) 705104-v1 Item No: 07A Meeting Date: February 27, 2017 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Public Hearing, Resolution 8721, a Resolution to Consider a Residential Kennel License for Alison Caldwell located at 8144 Pleasant View Court Background Alison Caldwell owns her home located at 8144 Pleasant View Court. Currently, Alison Caldwell has four (4) dogs (2 Cavalier/Bichon Mix, 1 Maltese/Poodle Mix, and 1 Lab/German Sheppard Mix). All dogs are current on their rabies shots and have been licensed (tagged). Discussion On August 25, 2014, the Mounds View City Council approved Ordinance 890, which revised the requirements for obtaining a kennel license by not requiring residents to present a petition, but instead to have Staff send a public hearing notice to property owners or those occupying the land within five hundred feet (500’) radius at least ten (10) days before the public hearing. The City sent notices of this public hearing to residents within 500 feet radius of 8144 Pleasant View Court more than ten (10) days prior to this public hearing. There are no animal complaints on file at this address by the police department. Alison Caldwell will be present at this meeting to answer any questions. Staff received an email from a resident with concerns about two (2) of Ms. Caldwell’s dogs consistent barking. This email will be provided to the City Council at this meeting. Recommendation Staff recommends opening the public hearing for public comment, and consider Resolution 8721. If approved, this license will expire on June 30, 2017. Respectfully submitted, ____________________ Desaree Crane RESOLUTION NO. 8721 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING A RESIDENTIAL KENNEL LICENSE FOR ALISON CALDWELL LOCATED AT 8144 PLEASANT VIEW COURT WHEREAS, Alison Caldwell applied for a Residential Kennel License located at 8144 Pleasant View Court; and WHEREAS, Alison Caldwell own four (4) dogs; and WHEREAS, the current dogs owned by Alison Caldwell are licensed with the City in accordance with the Mounds View City Code; and WHEREAS, the appropriate paperwork and fees have been submitted to the City; and WHEREAS, in accordance with Ordinance 890, the City sent public hearing notices to registered landowners or those occupying the land within five hundred feet (500’) radius of 8144 Pleasant View Court; and WHEREAS, this license will expire on June 30, 2017. NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council does grant a Residential Kennel License to Alison Caldwell located at 8144 Pleasant View Court. NOW, THEREFORE, BE IT FURTHER RESOLVED that this license will expire on June 30, 2017. Adopted this 27th day of February, 2017. __________________________________ Carol A. Mueller, Mayor ATTEST: ________________________________ James Ericson, City Administrator (seal) Item No: 07B Meeting Date: February 27, 2017 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Public Hearing, Resolution 8722, Approving an Off-Sale Intoxicating License Transfer from Menbe, Inc. (doing business as ABC Liquor) to AB Liquor, LLC., located at 2840 Mounds View Boulevard Background: In accordance with Chapter 502 of the Mounds View City Code, a public hearing is required for all liquor license transfers. Menbe, Inc., is requesting to transfer their Off-Sale Intoxicating Liquor License to AB Liquor, LLC. Representative from AB Liquor, LLC, will be available to answer questions. Discussion: AB Liquor, LLC., submitted all required city liquor license application materials and fees. The following investigations and inspections have been conducted to determine whether there is cause for the City to deny the application: Police Inquiry and Investigations (Mounds View Police Department) Staff submitted a background check application to the Minnesota Bureau of Criminal Apprehension (BCA) on the owner of AB Liquor, LLC., Selam Mebratu, and also submitted a background check on AB Liquor, LLC. All reports have come back satisfactory. City Billing (Mounds View Finance Department) ABC Liquor is up to date on payment of all utility bills. There are no outstanding property taxes. Fire Inspection (Mounds View Fire Marshal) Before the transfer occurs, they would be required to have a fire inspection. This license will be contingent on a satisfactory fire inspection from the Fire Marshal. Recommendation: Staff recommends approving Resolution 8722, approving an Off-Sale Intoxicating Liquor License transfer from Menbe, Inc., (doing business as ABC Liquor) to AB Liquor. LLC, located at 2840 Mounds View Boulevard, contingent a satisfactory fire inspection. If approved, this license will expire on June 30, 2017. Respectfully Submitted, ___________________________ Desaree Crane RESOLUTION 8722 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA Approving a Transfer of Ownership for an Off-Sale Intoxicating Liquor License from Menbe, Inc. (doing business as ABC Liquor) to AB Liquor, LLC. Located at 2840 Mounds View Boulevard WHEREAS, Menbe, Inc., is requesting to transfer their Off-Sale Intoxicating Liquor License to AB Liquor, LLC. located at 2840 Mounds View Boulevard; and WHEREAS, all City of Mounds View business licenses must be approved by the City Council; and WHEREAS, AB Liquor, LLC., submitted all required City and State liquor license application materials and fees; and WHEREAS, staff has reviewed all application materials; and WHEREAS, staff recommends approval of an Off-Sale Intoxicating Liquor License transfer to the AB Liquor, LLC., contingent on a satisfactory fire inspection. NOW, THEREFORE, BE IT RESOLVED, that the Mounds View City Council does hereby approve an Off-Sale Intoxicating Liquor License transfer to AB Liquor, LLC contingent on a satisfactory fire inspection. NOW, THEREFORE, BE IT FURTHER RESOLVED, that this license will expire on June 30, 2017. Adopted this 27th day of February, 2017. ____________________________________ Carol A. Mueller, Mayor ATTEST: ____________________________________ James Ericson, City Administrator (seal) Engineering/GIS Intern Position Description Page 1/3 CITY OF MOUNDS VIEW POSITION DESCRIPTION Position Title: GIS/Engineering/GIS Intern Department: Public Works – Administration/Engineering Division Accountable to: Director of Public Works Status: Internship (seasonal), Part-time, Non-Union PRIMARY OBJECTIVE OF POSITON To assist the Administration/Engineering Division of the Public Works Department with records management, geographical information system (GIS) data and base mapping, engineering, project development, planning, inspections, public requests, and other Division functions. This position is intended for a current or recent college student majoring in Civil Engineering, Geographic Information Systems (GIS). SUPERVISION RECEIVED This position is supervised by and works under the general guidance and direction of the Public Works Director. This position may receive specific guidance and direction from the Engineering/IS Technician as assigned by the Public Works Director. SUPERVISION EXERCISED None. ESSENTIAL DUTES AND RESPONSIBILITIES  Assist with creating, maintaining, and updating the City’s GIS data and base mapping system for citywide infrastructure and lands management.  Collect field measurements, conditions, and other infrastructure information and incorporate into database and mapping systems.  Assist with the management of the City’s electronic and hard copy record drawings, plats, and other as-built inventories.  Prepare various displays, graphics, and exhibits for use in public meetings, reports, and other functions.  Perform field assessments and investigations for use in studies and project development.  Inspect and document construction activities for public improvement projects.  Respond to public requests and inquiries for record drawings, as-built information, permits, and other department functions in a timely and courteous manner.  Coordinate work activities with activities of the Operation and Maintenance Division.  Performs other duties and responsibilities as apparent or assigned by the Public Works Director. MINIMUM QUALIFICATIONS  High School diploma or GED.  Current or recent enrollment in a college or technical school pursuing a degree in Civil Engineering, Geographic Information Systems (GIS), Civil Engineering, or other related field.  Valid Class D Minnesota driver’s license.  Semi-proficient with AutoCAD and/or ArcView computer software programs. Engineering/GIS Intern Position Description Page 2/3 PREFERRED QUALIFICATIONS  Completion of at least one year of college or technical school coursework.  Proficient with ArcView computer software programs.  Familiarity with municipal infrastructure and facilities.  Experience with working with drawings and survey documents.  Semi-proficient with AutoCAD computer software program.  NECESSARY KNOWLEDGE, SKILLS, AND ABILITIES  Skill and knowledge in the operation of AutoCAD and/or ArcView computer software programs.  Skill and knowledge in using computers to maintain records and electronic files; prepare letters, memos, and reports; correspond via e-mail; and research using the internet.  General knowledge of the principals and practices of drafting for construction plans, details, maps, exhibits, and other visual displays.  General knowledge of the principals and practices of geographic information systems (GIS).  Skill and ability to be well organized with a keen attention to details and neatness.  Ability to solve basic math and design problems.  Ability to read and interpret construction plans and specifications, maps, O&M manuals, and other technical documents.  Ability to communicate effectively, in English, both verbally and in writing.  Ability to assist with performing fieldwork, including surveying, utility locates, traffic counts, construction inspection, and other similar activities. SPECIAL REQUIREMENTS None. WORK ENVIRONMENT/PHYSICAL DEMANDS The work environment and physical demands described herein is are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Work for this job is located in both indoor and outdoor environments. The indoor work environment is typically in a HVAC-conditioned office setting with quiet to moderate noise levels. Job duties also require exposure to outdoor conditions year-round, including adverse weather conditions and outdoor areas under heavy/highway, utility, or facility construction. The employee may occasionally work near moving mechanical parts and in high, precarious places and is occasionally exposed to wet and/or humid conditions, fumes or airborne particles, traffic, toxic or caustic chemicals, risk of electrical shock, and vibration. The employee is frequently required to sit; stand; walk; use hands to finger, handle, feel or operate objects, tools, or controls; and reach with hands and arms and occasionally climb or balance; stoop, kneel, crouch, or crawl; taste or smell. Visual acuity sufficient to evaluate field conditions, construction practices and work done, and plans and drawings is necessary, as is the ability to communicate orally in person and over the telephone. Specific vision abilities Engineering/GIS Intern Position Description Page 3/3 include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus. The employee must frequently lift and/or move up to 25 pounds and occasionally up to 100 pounds. SELECTION GUIDELINES Formal application and resume, rating of education and experience, oral interview and reference check; job related tests may be required. The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. The job description does not constitute an employment agreement between the employer and the employee and is subject to change by the employer as the needs of the employer and requirements of the job change. Approval: ____________________________ Approval: ________________________ Supervisor Clerk - Administrator Effective Date: ________________________ Revision History: 02/2017 (Rev.) 02/2010 (Rev.) 05/2006 Item No: 07C Meeting Date: February 27, 2017 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Resolution 8723, Approving a Revised Job Description and Authorization to Advertise for a Seasonal Intern in the Public Works Department Introduction: An engineering intern for the Public Works (PW) Department was first approved by the City Council in June 2006 in lieu of a seasonal maintenance worker to assist with the administrative/engineering staff. This minor shift in staffing was proposed to better enable PW to administer activities associated with the many upcoming public improvement projects planned at that time. The position description was tweaked in February 2010 between internships to include GIS (geographical information systems) duties and to better describe the overall duties and accommodate some shortcomings of the previous version. The GIS Engineering Intern is a temporary, part-time position geared toward current or recent college students in a related field. This employment arrangement allows Public Works to obtain skilled help at a fraction of the cost of hiring a full-time, regular employee. Current PW Staff have extensive experience and skill in working with AutoCAD and ArcGIS, the software programs already owned by the City, which will, in turn, allow a current or recent college student to obtain “real world”, on-the-job experience resulting in a “win-win” situation. The position is fully funded by the Water and Sanitary Sewer Enterprise Funds and has no impact on the General Fund. Discussion: Public Works Director Brian Erickson revised the job description by making it more of a GIS Intern and not an Engineering Intern. According to the Affordable Healthcare Act, there are provisions that require employers to offer health insurance to seasonal employees who work 120 calendar days or more during the year. It further requires that the seasonal employee who is hired to work for 120 calendar days and worked an average of 30 hours per week to be offered insurance on the 90th day of his or her employment, and would be eligible for health insurance benefits for 30 days. In addition to the obvious administrative nightmare and cost associated with insuring an employee for 30 days, this provision can also subject employers to obligations under the Consolidated Omnibus Budget Reconciliation Act (COBRA) upon termination of the employee’s employment, thereby creating even more burdens to the employer. Item 07C City Council Meeting Page 2 Hourly rate for the position is $11.75 in accordance with the 2017 Hourly Pay Plan. This position will start around mid-May and end in August. Staff will be advertising this position on the City’s website, LMC’s website and at local area colleges. Recommendation: Staff recommends that the City Council consider adopting Resolution 8723, which will authorize the advertisement for employment applications for the GIS Engineering Intern position and approve the revised job description. A separate resolution will be presented to City Council upon selection of a suitable finalist for the GIS Engineering Intern position. Respectfully submitted, ________________________ Desaree Crane RESOLUTION 8723 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING A REVISED JOB DESCRIPTION AND AUTHORIZATION TO ADVERTISE FOR A SEASONAL INTERN IN THE PUBLIC WORKS DEPARTMENT WHEREAS, an engineering intern for the Public Works (PW) Department was first approved by the City Council in June 2006 in lieu of a seasonal maintenance worker to assist with the administrative/engineering staff; and WHEREAS, the GIS Engineering Intern is a temporary, part-time seasonal position geared toward current or recent college students in a related field; and WHEREAS, Staff revised the job description focusing more on GIS; and WHEREAS, the hourly rate for this position will be $11.75 in accordance with the 2017 Pay Plan; and WHEREAS, this position will start around mid-May and end in August, not to exceed 119 calendar days. NOW, THEREFORE BE IT RESOLVED THAT the Mounds View City Council approves the proposed revisions to the attached job description, and authorizes the position to be advertised. Adopted this 27th day of February, 2017. ____________________________________ Carol A. Mueller, Mayor ATTEST: ____________________________________ James Ericson, City Administrator (SEAL) Mounds View Public Works Facility- BID TAB 2/21/2017 CONTRACTOR Add. #1 Add. #2 Add. #3 Add. #4 Add. #5 Bid Bond Base Bid Alternate #1 Alternate #2 Alternate #3 Alternate #4 Unit Price #1 Unit Price #2 Unit Price #3 Construction Results Corp. Donlar Construction Ebert Construction X X X X X X $5,156,000.00 $21,910.00 $31,949.00 $58,925.00 $41,623.00 $2,500.00 $700.00 $21.00 Ecco Construction Frerichs Construction Graham Construction Greystone Construction Jorgenson Construction X X X X X X $5,199,000.00 $23,000.00 $33,000.00 $71,000.00 $28,000.00 $4,500.00 $665.00 $23.00 JPMI Construction Kue Contractors X X X X X X $5,290,431.00 $24,000.00 $55,000.00 $84,000.00 $42,000.00 $2,800.00 $750.00 $24.00 LS Black Constructors Met-Con Companies Morcon Construction X X X X X X $5,570,000.00 $8,800.00 $35,000.00 $50,000.00 $34,000.00 $6,500.00 $800.00 $65.00 ProjectOne Construction X X X X X X $5,234,995.00 $23,400.00 $34,118.00 $62,909.00 $31,890.00 $2,650.00 $750.00 $25.00 Ram General Contracting X X X X X X $5,870,000.00 $7,095.00 $34,700.00 $75,600.00 $59,000.00 $2,950.00 $664.00 $21.70 Rochon Corporation X X X X X X $5,364,000.00 $24,000.00 $34,000.00 $32,000.00 $46,000.00 $3,500.00 $650.00 $40.00 Shaw-Lundquist Sheehy Contruction Tarraf Construction X X X X X X $5,555,000.00 $22,000.00 $33,000.00 $56,000.00 $36,000.00 $3,200.00 $900.00 $21.00 Terra General Contractors X X X X X X $5,660,000.00 $22,300.00 $32,600.00 $44,000.00 $34,000.00 $3,000.00 $650.00 $21.00 Versacon X X X X X X $5,446,001.00 $9,435.00 $33,615.00 $48,704.00 $36,163.00 $3,002.40 $734.40 $22.14 W. Gohman Construction X X X X X X $5,358,466.00 $8,900.00 $35,000.00 $54,000.00 $31,800.00 $3,500.00 $603.00 $20.58 Weber, Inc.X X X X X X $5,676,000.00 $9,300.00 $34,100.00 $39,100.00 $36,600.00 $3,280.00 $633.00 $22.00 Westin Construction 1 2 3 Item No: 7D Meeting Date: February 27, 2017 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Erickson, Public Works Director Item Title/Subject: Resolution 8719, Accepting Bids and Awarding Contract for the Construction of the Public Works Facility Introduction: The City Council is asked to approve the attached resolution accepting the bids and awarding the construction contract for the Public Works Facility (City Project No. 2017-C02). Discussion: Since October 2015 the City Council has been moving the project to construct a new Public Works Facility along as shown in the timeline below. • October 12, 2015, Approved Resolution 8461, Approve Public Works Facility Space Needs Study Consultant. • February 22, 2016, Approved Resolution 8524, Accepting Public Works Facility Space Needs Report. • March 14, 2016, Approved Resolution 8533, Approve Public Works Facility Design Services Request for Proposals and Authorize Advertisement. • April 25, 2016, Approved Resolution 8561, Approve Consultant to Perform Design Services Related to the Public Works Facility. • May 9, 2016, Approved Resolution 8566, Declaring the Official Intent of the City of Mounds View, Minnesota, to Reimburse Certain Capital Expenditures of a Project From the Proceeds of Tax Exempt Bonds. • July 11, 2016, Approved Resolution 8606, Approve Contract with American Engineering Testing, Inc. to Provide Asbestos and Regulated Waste Inspection at the Public Works Facility. • July 25, 2016, Approved Resolution 8607, Approve Contract with WSB & Associates, Inc. to Provide Geotechnical Services Related to the Public Works Facility. • November 14, 2016, Held a Public Hearing and Approved Resolution 8658, Adopting a Capital Improvement Plan and Giving Preliminary Approval to the Issuance of General Obligation Capital Improvement Bonds. • November 28, 2016, Approved Resolution 8669, Resolution Approving a Development Review for 2466 Bronson Dr. (Public Works Facility Expansion). • November 28, 2016, Approved Resolution 8670, Resolution Approving a CUP for Open and Outdoor Storage as an Accessory Use for 2466 Bronson Dr. (Public Works Facility Expansion). • November 28, 2016, Approved Resolution 8671, Resolution Approving a CUP for the Storage of Flammable Liquids over 800 Gallons Above Ground for 2466 Bronson Dr. (Public Works Facility Expansion). • January 9, 2017, Approved Resolution 8695, Resolution Authorizing Ehlers & Associates, Inc. and Kennedy & Graven, Chartered to act as Financial Advisor and Bond Counsel for the Issuance of General Obligation Capital Improvement Plan Bonds for Financing the Construction of a Public Works Facility. • January 9, 2017, Approved Resolution 8696, Resolution to Approve Plans and Specifications for Public Works Facility and Authorize Advertisement for Bids The project was advertised in the Sun Focus starting on January 20, 2017 it ran in 4 consecutive papers through February 10, 2017. In addition, the plans and specifications were available at Oertel Architects, the Minnesota Builders Exchange, Dodge Data Analytics, CMD Construction Market Data, Blue Book and on the City of Mounds View’s website. On January 25, 2017 there was a mandatory pre-bid conference that was attended by 25 general contractors and subcontractors. The bid opening was held on February 21, 2017 in the City Council Chambers. There were 12 bids received. As part of the bidding process there were five Addendum issued that clarified questions asked of the architect. The most critical of these provided the contractors with knowledge that the Public Works staff would be vacating the building. This allowed the contractors to plan for demolishing the entire building and not providing any temporary enclosures. The following table provides the bidders names, base bids, alternate bids and unit prices. During the bidding process, there were four alternate bid items along with a unit price request for three items. Bid alternates allow either reduction of work to reduce cost of the building or addition of work that is not critical to the operation of the building. Alternate 1 is additive for painting the vehicle storage area walls. Alternate 2 is additive for providing concrete storage panels for the bulk material storage area. Alternate 3 is deductive for reducing the vehicle storage area by 20 feet in length. Alternate 4 is deductive for reducing the size of the cold storage area by approximately 21 feet in length. Unit prices are for various smaller items of work that can be added (typically in minimum amounts) to the project that provide better functionality or aesthetics. Unit price number 1 is for each additional skylight and the minimum order is 4 units. Unit price number 2 is for each additional section of decorative screen wall fencing, and the minimum order is for 12 sections, each 4 feet in length. Unit price number 3 is for asphalt paving per square yard, and the minimum order is 20 square yards. The current project estimate is presented below along with the bid cost for the construction and other items needed to complete the project. The Final Project Estimate is $6,900,198, and the As Bid cost is $6,161,964. The bid price is shown to the right of the final project estimate. The Base Bid for the low bidder is well below the estimate and staff is recommending that alternates 1 and 2 are awarded with the contract. Additionally, there are some related relocation costs as the public works staff will be vacating the building during the entire construction project. These costs include rental of storage ‘pods’ for a 1 year duration, fencing around the storage area for security, installation of security lighting and additional electrical work to allow the relocation of the air compressor and welder, and the relocation of the SCADA (supervisory control and data acquisition) system for the water system. Also under the relocation costs is the hazardous material abatement work needed to remove the asbestos containing material prior to demolition. Contractor Base Bid Alt. 1 Alt. 2 Alt. 3 Alt. 4 Unit Price 1 Unit Price 2 Unit Price 3 Ebert Construction 5,156,000$ 21,910$ 31,949$ (58,925)$ (41,623)$ 2,500$ 700$ 21$ Jorgenson Construction 5,199,000$ 23,000$ 33,000$ (71,000)$ (28,000)$ 4,500$ 665$ 23$ ProjectOne Construction 5,234,995$ 23,400$ 34,118$ (62,909)$ (31,890)$ 2,650$ 750$ 25$ Kue Contractors 5,290,431$ 24,000$ 55,000$ (84,000)$ (42,000)$ 2,800$ 750$ 24$ W. Gohman Construction 5,358,466$ 8,900$ 35,000$ (54,000)$ (31,800)$ 3,500$ 603$ 20.58$ Rochon Corporation 5,364,000$ 24,000$ 34,000$ (32,000)$ (46,000)$ 3,500$ 650$ 40$ Versacon 5,446,001$ 9,435$ 33,615$ (48,704)$ (36,163)$ 3,002.40$ 734.40$ 22.14$ Tarraf Construction 5,555,000$ 22,000$ 33,000$ (56,000)$ (36,000)$ 3,200$ 900$ 21$ Morcon Construction 5,570,000$ 8,800$ 35,000$ (50,000)$ (34,000)$ 6,500$ 800$ 65$ Terra General Contractors 5,660,000$ 22,300$ 32,600$ (44,000)$ (34,000)$ 3,000$ 650$ 21$ Weber, Inc.5,676,000$ 9,300$ 34,100$ (39,100)$ (36,600)$ 3,280$ 633$ 22$ Ram General Contracting 5,870,000$ 7,095$ 34,700$ (75,600)$ (59,000)$ 2,950$ 664$ 21.70$ Public Works Facility Bids along with Bid Alternates and Unit Prices As shown below the total project cost is approximately $740,000 below the final estimate even when including the relocation costs. Staff would also recommend that the contingency remain at 6% because when compared to a street and utility project, this building construction is more complicated. Recommendation: Public Works and Oertel Architects, Inc. recommend that the City Council adopt the attached resolution to accept the bids and award the contract for the construction of the Public Works Facility (City Project No. 2017-C02). Additionally, staff recommends the approval of the following: • Storage ‘pod’ rental from DART in the amount of $7,080 • Temporary fencing installation by Century Fence in the amount of $5,515 • Electrical work for relocation of the welder, air compressor, and security lighting by Muska Electric in the amount of $7,795 • SCADA relocation by AE2S in the amount of $14,400 Respectfully submitted, Brian Erickson – Public Works Director/City Engineer Final Project Estimate As Bid Difference Design 247,000$ 247,000$ -$ Construction Main Building 4,430,912$ Site Work 871,145$ Auxillary Structures 352,125$ Gen'l Conditions of Construction (5%)282,709$ Base Bid - Building 5,156,000$ Alternate 1 - Paint Vehicle Storage 21,910$ Alternate 2 - Concrete Material Storage 31,949$ Construction Subtotal 5,936,891$ 5,209,859$ (727,032)$ Construction Contingency (6%)339,251$ 312,592$ (26,659)$ Construction Total 6,276,142$ 5,522,451$ (753,691)$ Relocation Costs Storage Pods - 1 year rental 7,080$ Fencing 5,515$ Electrical - welder, air comp., lighting 7,795$ SCADA Relocation 14,400$ Hazardous Material Design 4,000$ Hazardous Material Abatement 4,000$ Relocation Costs Total 42,790$ 42,790$ Other Costs/Allowances 377,056$ 349,723$ (27,332)$ Total Project Estimate 6,900,198$ 6,161,964$ (738,234)$ TOTAL PROJECT ESTIMATE RESOLUTION 8719 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE CONSTRUCTION OF THE PUBLIC WORKS FACILITY WHEREAS, the City Council adopted Resolution 8696 on January 9, 2017 approving the plans and specifications for the Public Works Facility and authorizing advertisement for bids; and, WHEREAS, the advertisement for bids was published in the January 20, January 27, February 3 and February 10, 2017 editions of the Sun Focus; and, WHEREAS, on February 21, 2017 twelve sealed bids were received, opened and publicly read aloud as follows: Rank Contractor Base Bid Alt. 1 Alt. 2 Low Ebert Construction 5,156,000$ 21,910$ 31,949$ 2 Jorgenson Construction 5,199,000$ 23,000$ 33,000$ 3 ProjectOne Construction 5,234,995$ 23,400$ 34,118$ 4 Kue Contractors 5,290,431$ 24,000$ 55,000$ 5 W. Gohman Construction 5,358,466$ 8,900$ 35,000$ 6 Rochon Corporation 5,364,000$ 24,000$ 34,000$ 7 Versacon 5,446,001$ 9,435$ 33,615$ 8 Tarraf Construction 5,555,000$ 22,000$ 33,000$ 9 Morcon Construction 5,570,000$ 8,800$ 35,000$ 10 Terra General Contractors 5,660,000$ 22,300$ 32,600$ 11 Weber, Inc.5,676,000$ 9,300$ 34,100$ 12 Ram General Contracting 5,870,000$ 7,095$ 34,700$ ; and, WHEREAS, the lowest responsible bid of $5,156,000.00 was submitted by Ebert Construction of Corcoran, MN; and, WHEREAS, there is sufficient funding for Alternate Bid Item 1 – paint vehicle storage area walls in the amount of $21,910; and, WHEREAS, there is sufficient funding for Alternate Bid Item 2 – provide pre-cast concrete silo storage panels for bulk material storage in the amount of $31,949; and, WHEREAS, the City Engineer and Oertel Architects recommend awarding a construction contract to Ebert Construction for the base bid and alternates 1 and 2 in the amount of $5,209,859; and, WHEREAS, the City has received a quote of $7,080 from DART Portable Storage, Inc. to provide three 20 foot storage containers and three 40 foot storage containers; and, WHEREAS, the City has received a quote of $5,515 from Century Fence to provide security fencing around the storage containers; and, WHEREAS, the City has received a quote of $7,795 from Muska Electric for electrical modifications to include the relocation of the welder, air compressor and installation of security lighting; and, WHEREAS, the City has received a quote of $14,400 from AE2S for relocating the SCADA system. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Ramsey County, Minnesota as follows: 1. The bid proposal submitted by Ebert Construction with a Base Bid of $5,156,000, Alternate 1 Bid of $21,910 and Alternate 2 Bid of $31,949 for a total amount of $5,209,859 for constructing the Public Works Facility, City Project 2017-C02 is accepted by the City and a construction contract is awarded to Ebert Construction. 2. City staff is directed to have a construction contract prepared for the Project at said price, and the City Attorney is authorized to review the prepared construction contract and any associated documentation submitted by Ebert Construction. 3. Upon satisfactory review of the prepared construction contract and documentation by the City Attorney, the Mayor and City Administrator are hereby authorized and directed, for and on behalf of the City, to execute and enter into said construction contract with Ebert Construction. 4. The Director of Public Works is authorized to make approvals related to contract modifications during construction of the Project up to a combined total of $312,592 (6% contingency) on behalf of the City Council. 5. The proposal from DART Portable Storage, Inc., in the amount of $7,080 to provide three 20 foot storage containers and three 40 foot storage containers is accepted. 6. The proposal from Century Fence in the amount of $5,515 to provide security fencing around the storage containers is accepted. 7. The proposal from Muska Electric in the amount of $7,795 for electrical modifications to include the relocation of the welder, air compressor and installation of security lighting is accepted. 8. The proposal from AE2S in the amount of $14,400 for relocating the SCADA system is accepted. 9. The Mayor and City Administrator are hereby authorized and directed to execute all appropriate documents to effectuate the actions contemplated by this Resolution. 10. The Mayor and City Administrator, staff and consultants are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. Adopted this 27th day of February, 2017 ____________________________________ Carol A. Mueller, Mayor ATTEST: ____________________________________ James Ericson, City Administrator (SEAL) Item No: 7E Meeting Date: February 27, 2017 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian L. Erickson, Public Works Director/City Engineer Michael L. Richie, Public Works Project Coordinator Item Title/Subject: Resolution 8720, Accepting Improvements and Approving Final Payment for the 2016 Sanitary Sewer Rehabilitation Project Background: Lametti & Sons, Inc. (Lametti) submitted the lowest responsive, responsible bid and was awarded the contract for the 2016 Sanitary Sewer Rehabilitation Project (City Project No. 2016-C04) at the May 9, 2016 City Council meeting (Resolution 8564). Construction was substantially complete on February 8, 2017 – the date that the one-year warrantee period begins. Discussion: During the project, one contract modification in the amount of $18,285.00 was required to complete additional sanitary sewer lining. This modification was not within the construction contingency amount of $12,215.00 approved in Resolution 8564. City Council approved the additional funding to complete this work via Resolution 8608. At this point Lametti has completed all project site work in a satisfactory manner in accordance with the contract documents, however they have yet to submit all IC-134 forms and other required project closeout documents. The City has been withholding 5% of the value of all completed work pending completion of the punch list and closeout requirements. The following is a summary of the contract changes: Original Contract Amount: $162,851.00 Change Orders (1): +$18,285.00 Current Contract Amount: $182,665.00 The final payment amount to Lametti is $33,568.20. Recommendation: Public Works recommends that the City Council adopt the attached resolution to accept the construction work and release final payment of $33,568.20 for the 2016 Sanitary Sewer Rehabilitation Project (City Project No. 2016-C04) pending submission of the IC-134 forms and other required project closeout documents. Respectfully submitted, Brian L. Erickson, P.E. – Public Works Director/City Engineer RESOLUTION 8720 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA ACCEPTING IMPROVEMENTS AND APPROVING FINAL PAYMENT FOR THE 2016 SANITARY SEWER REHABILITATION PROJECT WHEREAS, Public Works prepared project documents for the repair work in accordance with industry standards, and a public bid solicitation was sent out with 3 bids being received; and WHEREAS, Lametti & Sons, Inc. of Hugo, Minnesota, submitted the lowest bid in the amount of $162,851.00; and WHEREAS, City Council approved a construction contract with Lametti & Sons, Inc. to perform the sanitary sewer work for $162,851.00 in Resolution 8564; and, WHEREAS, City Council approved additional funding in the amount of $18,285.00 for necessary contract modifications to complete the project in Resolution 8608; and, WHEREAS, Lametti & Sons, Inc. has successfully completed all project construction and met all other contract requirements for the Project with a substantial completion date of February 8, 2017 and a final construction cost of $182,665.00; and WHEREAS, City staff recommends accepting the completed construction work and issuing final payment for $33,568.20 to Lametti & Sons, Inc., pending submission of the IC-134 forms and other required project closeout documents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Ramsey County, Minnesota as follows: 1. All work completed under the contract between the City and Lametti & Sons, Inc. for construction of the 2016 Sanitary Sewer Rehabilitation Project is hereby accepted and approved. 2. The Finance Director is authorized to issue final payment of $33,568.20 to Lametti & Sons, Inc. for completing construction of the Project, pending approval by Brian Erickson, Public Works Director/City Engineer. Adopted this 27th day of February, 2017 ____________________________________ Carol A. Mueller, Mayor ATTEST: ____________________________________ James Ericson, City Administrator (SEAL) Item No: 08A Meeting Date: February 27, 2017 Type of Business: Consent City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 8715, Approving Amendments to Section 3.35 and Section 3.45 of the Personnel Manual, Relating to the Sick Leave Policy and the Retirement Health Savings Plan Policy, Respectively Background: Due to new hires in the non-union group, Staff had a meeting with all non-union employees to review whether the current Retirement Health Savings Plan (RHSP) policy meets the needs of non-union employees. The employees have elected to make some changes to the policy. Discussion: While reviewing the proposed changes to Section 3.45 of the Personnel Manual relating to the Retirement Health Savings Plan, it became apparent that changes would also be necessary in Section 3.35 of the Personnel Manual relating to the Sick Leave policy. The changes in Section 3.35 eliminate reference to “banked” sick leave, since there really are no practical limitations on the number of hours that can be accumulated. In addition, new language is introduced which caps the number of hours that may be paid out through a combination of annual contributions and severance. The new language in Section 3.35 is as follows: While there are no limits imposed upon the actual accrual of sick leave, the number of hours that can be (a) converted annually and (b) contributed via separation into an employee’s Retirement Health Savings Plan (RHSP) shall be capped according to a formula articulated in Section 3.45. The formula added in Section 3.45 of the Personnel Manual replaces “wordy” language that was unnecessarily cumbersome. The formula does not change the number of hours each employee is eligible to receive. For purposes of severance and contribution into an employee’s RHSP, eligible sick leave hours shall be capped based upon the following formulas, where “Y” represents the number of years of service completed by the employee and “M” represents the maximum eligible hours. If Y is equal to or less than 10, then M = 96 * Y. If Y is equal to 11 or more, then M = (Y-10) * 20 + 960. Personnel Manual Revisions February 27, 2017 Page 2 The new language addressing the maximum sick leave hours eligible for contribution to an employee’s Retirement Health Savings Plan applies to employees who began employment after January 1, 2008. Other changes to Section 3.45 are to eliminate language that no longer applies or incorporates new contributions elected by staff. The revisions were reviewed by all non- union employees. Revisions in the two policies are identified either in red (deletions) or blue (additions). Recommendation: Staff recommends approval of Resolution 8715, a resolution approving amendments to Section 3.35 and Section 3.45 of the Personnel Manual, relating to the Sick Leave policy and the Retirement Health Savings Plan policy, respectively. Respectfully submitted, ________________________ James Ericson City Administrator RESOLUTION NO. 8715 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING AMENDMENTS TO SECTIONS 3.35 AND 3.45 OF THE PERSONNEL MANUAL, RELATING TO THE SICK LEAVE POLICY AND THE RETIREMENT HEALTH SAVINGS PLAN POLICY, RESPECTIVELY WHEREAS, due to new hires in the non-union group, revisions are being proposed to Section 3.45 of the Personnel Manual relating to the Retirement Health Savings Plan (RHSP) policy to meet the needs of non-union employees; and, WHEREAS, revisions are also proposed to Section 3.35 of the Personnel Manual relating to the Sick Leave policy; and, WHEREAS, said revisions have been reviewed by non-union staff. NOW, THEREFORE BE IT RESOLVED, that the Mounds View City Council does hereby approve revisions to Section 3.35 of the Mounds View Personnel Manual, relating to the “Sick Leave” policy, as indicated in the attached Exhibit A. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Mounds View City Council does hereby approve revisions to Section 3.45 of the Mounds View Personnel Manual, relating to the “Retirement Health Savings Plan” (RHSP), as indicated in the attached Exhibit B. Adopted this 27th day of February, 2017. ______________________________ Carol A. Mueller, Mayor ATTEST: ______________________________ James Ericson, City Administrator (SEAL) EXHIBIT B. Regular full-time and part-time employees averaging more 20 hours or more per week are eligible to receive sick leave with pay after completion of their initial six-month probationary period. Although new probationary employees are not entitled to use paid sick leave, sick leave hours begin accruing on the first day of employment. Promotional probationary employees may make use of sick leave. However, if the sick leave exceeds a total of five working days, the probationary period shall automatically be extended for an equivalent period of time. A. ACCRUAL Sick leave accrues at the rate of 8 hours per month unless otherwise established by a collective bargaining agreement. Regular part-time employees eligible for paid leave earn it on a pro-rated basis. Sick leave may be accumulated to a maximum of 120 days. While there are no limits imposed upon the actual accrual of sick leave, the number of hours that can be (a) converted annually and (b) contributed via separation into an employee’s Retirement Health Savings Plan (RHSP) shall be capped according to a formula articulated in Section 3.45. B. BANKED SICK LEAVE Employees who have accumulated the maximum 120 days sick leave shall be permitted to accrue an additional "bank" of sick leave at the rate of one day per month. Additional Banked Sick Leave will not be counted in the calculation of severance benefits. C. USE Sick leave should not be considered a privilege or vested right that may be used at an employee’s discretion but shall be considered as a type of insurance used for the case of an illness, disability of the employee, or to receive dental or medical care when approved by the employee’s Supervisor. POLICY: SICK LEAVE SECTION: 3.35 EXHIBIT A. EXHIBIT B. The City of Mounds View offers its employees a Retirement Health Savings Plan (RHSP) pursuant to Internal Revenue Code regulations through a third party administrator selected by the City. For purposes of severance and contribution into an employee’s RHSP, eligible sick leave hours shall be capped based upon the following formulas, where “Y” represents the number of years of service completed by the employee and “M” represents the maximum eligible hours. If Y is equal to or less than 10, then M = 96 * Y. If Y is equal to 11 or more, then M = (Y-10) * 20 + 960. The following contributions will be allowed to the Retirement Health Savings Plan: D A. Upon separation from the City, employees who have completed two or more years of service and leave the City in good standing shall contribute 100% of their eligible sick leave hours, converted at the rate of 50%, to their RHSP, in accordance with the following except as noted below, eligible sick leave is limited to 50% of an employee’s sick leave balance, which is capped as follows: Base cap = 960 hours. The base cap shall be increased by 20 hours per year for each year employed beyond ten years. For example, a 15-year employee’s cap would be 1060 hours and a twenty-year employee’s cap would be 1160 hours. 1. For employees hired after January 1, 2008, sick leave hours paid out as severance shall not exceed the employee’s maximum eligible hours cap less any annual contributions made under Section A. 2. Employees with less than two years of service with the City are not eligible to contribute sick leave hours to the RHSP and have no right to any payout of unused sick leave hours. 3. Employees who had completed ten years of service by January 1, 2008, qualify for enhanced sick leave payout at the rate of 65%. Upon separation, qualifying employees shall contribute 100% of their eligible sick leave hours to their RHSP at the enhanced rate. The enhanced sick leave payout is equal to 65% of an employee’s sick leave balance. (The enhanced conversion rate of 65% applies ONLY to sick leave hours contributed at separation, subject to the maximum cap addressed above.) 4. Sick leave balances in excess of the maximum eligible above described cap as defined above are not eligible for contribution or payout in any form, except as follows: POLICY: RETIREMENT HEALTH SAVINGS PLAN SECTION: 3.45 EXHIBIT B. Employees having accrued a balance of 1,400 or more sick leave hours as of September 1, 2008 shall be eligible for the enhanced payout up to a maximum contribution equivalent to the highest sick leave balance carried during 2008. A. Employees who have a sick leave balance of 600 or more hours shall contribute their excess balance to the RHSP at a 2 to 1 ratio with a maximum annual contribution of 160 hours (80 hours converted) or that amount which brings the employee’s sick leave balance down to 600 hours—whichever is less. The City shall calculate and process the annual employee contribution to the RHSP on the first payroll period of December November of each year. At no point however shall an employee’s cumulative contributions exceed the employee’s maximum eligible hours, as defined above. B. In addition to the provisions listed in Section A, the following below shall apply to non-exempt civilian Police Department employees: 1. Civilian Police Department employees fifty (50) years of age or older shall contribute fifteen (15%) of their salary per payroll towards the RHSP and, in addition, upon separation, employees in this category who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. C. In addition to the provisions listed in Section A, the following table below and terms shall apply to all other non-exempt employees: Group Designation Age + Years of Service Group A Up to 59 Group B 60 to 74 Group C 75 and above 1. Employees in Group A shall contribute 1% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute fifty percent (50%) of accrued vacation compensation to the RHSP. 2. Employees in Group B shall contribute 3% of their salary per payroll towards the RHSP, and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. EXHIBIT B. 3. Employees in Group C shall contribute 5% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. C D. In addition to the provisions listed in Section A, non-union POST Certified employees shall contribute two five percent (2 5%) of their salary per payroll period toward the RHSP, and, in addition, upon separation from the City, employees in this classification who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. Item No: 8B Meeting Date: February 27, 2017 Type of Business: CA Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Administrator Item Title/Subject: Resolution 8724, Approving Insurance Adjustment Contribution Adjustment for Non-Union Employees Background: The L.E.L.S Police Sergeant and Officer unions have settled their contracts with the City, and approved an insurance contribution of $1,050.00. Non-union employees are currently receiving an insurance contribution in the amount of $1,040.00. The City Council has traditionally awarded the same Cost of Living Adjustment (COLA) and insurance contribution to all employee groups in order to maintain internal equity. Discussion: Staff recommends increasing the insurance contribution for non-union employees from $1040 to $1050 a month in order to maintain internal equity. Recommendation: Staff recommends approval of Resolution 8724, approving a monthly insurance contribution of $1050.00, effective January 1, 2017 for all non-union employees. Respectfully submitted, Desaree Crane RESOLUTION 8724 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA APPROVING A INSURANCE CONTRIBUTION ADJUSTMENT FOR NON-UNION EMPLOYEES WHEREAS, the Personnel Compensation Schedule must be annually approved by Council Resolution; and WHEREAS, the City Council has traditionally awarded the same cost of living adjustment and insurance contribution to all employee groups in order to maintain internal equity; and WHEREAS, the L.E.L.S Police Sergeant and Officer unions have settled their contracts with the City and approved an insurance contribution of $1,050.00; and WHEREAS, Staff recommends a monthly insurance contribution adjustment of $1050.00 for all non-union employees, effective January 1, 2017, to maintain internal equity. NOW, THEREFORE, BE IT RESOLVED, that the Mounds View City Council hereby approves a monthly insurance contribution of $1050.00 for all non-union employees, effective January 1, 2017. Adopted this 27th day of February, 2017. ____________________________________ Carol A. Mueller, Mayor ATTEST: ____________________________________ James Ericson, City Administrator (seal) Post-Issuance Debt Compliance Policy The City Council of the City of Mounds View has chosen, by policy, to take steps to help ensure that all tax-exempt debt obligations will be in compliance with all applicable state and federal regulations regarding the obligations. This policy may be amended, as necessary, in the future. Background Tax-exempt debt obligations (debt for which the interest paid to the debt holders is excludable from their gross income for federal income taxes) result in a lower interest cost to state and local governments (the issuer). The tax- exempt status remains throughout the life of the debt obligation provided all applicable state and federal tax laws are satisfied at the time of issuance and throughout the term of the obligation. The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code and most other regulations governing tax-exempt obligations. The IRS expects issuers and beneficiaries of tax-exempt debt to adopt and implement a post-issuance debt compliance policy and procedures to safeguard against post-issuance violations that may result in the loss of the tax-exempt status of the debt. Post-Issuance Debt Compliance Policy Objective The City of Mounds View desires to monitor all of its tax-exempt debt obligations to ensure that all tax-exempt debt obligations remain in compliance with the IRS Code and all other regulations governing tax-exempt obligations. To help ensure compliance, the City of Mounds View has developed a “Policy”. The following Policy shall apply to all tax-exempt debt obligations including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper, or any other form of tax-exempt debt. This Policy primarily applies to governmental bonds; for post-issuance policies specifically related to conduit /private activity bonds, see the Procedure for Application to City of Mounds View, Minnesota for Private Activity Revenue Bond Financing. Post Issuance Debt Compliance Policy The Finance Director of the City of Mounds View is designated as the City’s agent who is responsible for post- issuance compliance of all tax-exempt debt obligations, and is referred to in this policy as the “Compliance Officer.” The Compliance Officer shall assemble all relevant documentation, records and activities required to ensure post- issuance debt compliance as further detailing the “Post-Issuance Debt Compliance Procedures”. At a minimum, the Post-Issuance Debt Compliance Procedures for each tax-exempt debt obligation will address the following: 1. General Post-Issuance Compliance; 2. Proper and timely use of bond proceeds and bond-financed property; 3. Arbitrage yield restrictions and rebate; 4. Timely filings and other general requirements; 5. Additional undertaking or activities that support points 1 through 4 above; 6. Other requirements that become necessary in the future. The Compliance Officer shall apply the Post-Issuance Debt Compliance Procedures to each tax-exempt debt obligation and maintain a record of the results. Further, the Compliance Officer will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis. The Compliance Officer, or any other individuals responsible for assisting the Compliance Officer in maintaining records needed to ensure post-issuance compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance. The compliance Officer will be assisted by other City staff and officials when appropriate. The compliance Officer of the City will also be assisted in carrying out post-issuance compliance requirements by the following organizations: a) Bond Counsel; b) Financial Advisor; c) Paying Agent; and d) Rebate Analyst. The Compliance Officer shall be responsible for assigning post-issuance compliance responsibilities to other staff of the City, Bond Counsel, Paying Agent, and Rebate Analyst. The Compliance Officer shall utilize such other professional service organizations as are necessary to ensure compliance with the post-issuance compliance requirements of the City. The Compliance Officer is authorized to expend funds as needed for training and educational resources for the Compliance Officer and any other City staff who are assigned responsibilities for ensuring compliance with any portion of the post-issuance compliance requirements of this Policy. Post-Issuance Debt Compliance Procedures The Post-Issuance Debt Compliance Policy applies to all tax-exempt debt obligations issued by the City of Mounds View. As directed by the adoption of the Policy, the Finance Director will perform the following Post- Issuance Debt Compliance Procedures for the following tax-exempt debt obligation: __(Title of tax-exempt debt obligation)__ 1. General Post-Issuance Compliance a. Ensure written procedures and/or guidelines have been put in place for individuals to follow when more than one person is responsible for ensuring compliance with Post-Issuance Procedures. b. Ensure training and/or educational resources for post-issuance compliance have been approved and obtained. c. The Finance Director of the City of Mounds View understands that there are options for voluntarily correcting failures to comply with post-issuance compliance requirements (i.e. Treasury Regulations 1.141-12 remedial actions, Tax-Exempt Bonds Voluntary Closing Agreement Program and the ability to enter into a closing agreement under the Tax-Exempt Bonds Voluntary Closing Agreement Program describer in Notice 2001-60). 2. General Recordkeeping a. Retain records and documents for this tax-exempt debt obligation for a period of at least three years following the final payment of the obligation of the final payment of any tax-exempt refunding debt obligation unless otherwise directed by Bond Counsel. b. Retain both paper and electron versions of records and documents for this tax-exempt debt obligation. c. General Records and Documentation to be Assembled and Retained i. Description of the purpose of the tax-exempt debt obligation (referred to as the project) and the state statute authorizing the project. ii. Record of tax-exempt status or revocation of tax-exempt status iii. Any correspondence between the City of Mounds View and the IRS. iv. Audited financial statements. v. Bond transcripts, official statements and other offering documents of tax-exempt debt obligations. vi. Minutes and resolutions authorizing the issuance of tax-exempt debt obligations. vii. Certifications of the issue price of tax-exempt debt obligations. viii. Any formal elections for tax-exempt debt obligations (i.e. election to employ an accounting methodology other than the specific tracing method). ix. Appraisals, demand surveys, or feasibility studies for property financed by tax-exempt debt obligations. x. Documents related to governmental grants, associated with construction, renovations or purchase of property financed with tax-exempt debt obligations. xi. Reports of any prior IRS examinations of the City of Mounds View or City’s tax-exempt debt obligations. 3. Arbitrage Yield Restrictions and Rebate Recordkeeping a. Investment and Arbitrage Documentation to be Assembled and Retained i. An accounting of all deposits, expenditures, interest income and asset balances associated with each fund established in connection with each tax-exempt debt obligations. This includes an accounting of all monies deposited to the Debt Service Account to make debt service payments on the tax-exempt debt obligations, regardless of the source derived. Accounting for expenditure and assets is described in further detail in Section 3b. ii. Statements prepared by Trustee or Investment Provider. iii. Documentation of at least quarterly allocations of investments and investment earnings to each tax-exempt debt obligation (i.e. uncommingling analysis). iv. Documentation for investments made with tax-exempt proceeds such as: 1. Investment contracts (i.e. guaranteed investment contracts). 2. Credit enhancement transactions (i.e. bong issuance contracts). 3. Financial derivatives (swaps, caps, etc). 4. Bidding of financial products. a. Investments acquired with tax-exempt proceeds are purchased at fair market value (i.e. three bids for open market securities needed in advance refunding escrows). b. Computations of the arbitrage yield. c. Computations of yield restriction and rebate amounts including but not limited to: i. Compliance in meeting the “Temporary Period from Yield Restriction Exception” and limiting the investment of funds after the temporary period expires. ii. Compliance in meeting the “Rebate Exception”. 1.Qualifying for the “Small Issuer Exception”. 2.Qualifying for a “Spending Exception”. • 6 Month Spending Exception • 18 Month Spending Exception • 24 Month Spending Exception 3.Qualifying for the “Bona Fide Debt Service Fund Exception”. 4.Quantifying arbitrage on all funds established in connection with the tax-exempt debt obligations in lieu of satisfying arbitrage exceptions (including Reserve Funds and Debt Service Funds). d. Computations of yield restriction and rebate payments. e. Timely Tax Form 8038-T filing, if applicable. i. Remit any arbitrage liability associated with this tax-exempt debt obligation to the IRS at each five year anniversary date of the obligation, and the date in which the obligation is not longer outstanding (redemption or maturity date), whichever comes sooner, within 60 days of said date. f. Timely Tax Form 8038-R filing, if applicable. g. Procedures or guidelines for monitoring instances where compliance with applicable yield restriction requirements depends on subsequent reinvestment of tax-exempt proceeds in lower yielding investments (i.e. reinvestment in zero coupon SLGS). 4. Expenditure and Asset Documentation to be Assembled and Retained a. Documentation of allocations of tax-exempt proceeds to expenditures (i.e. allocation of proceeds to expenditures for the construction, renovation or purchase of facilities owned and used in the performance of exempt purposes). b. Documentation of allocations of tax-exempt proceeds to issuance costs. c. Copies of requisitions, draw schedules, draw requests, invoices, bills and cancelled checks related to tax-exempt proceed expenditures during the construction period. d. Copies of all contracts entered into for the construction, renovation or purchase of facilities financed with tax-exempt proceeds. e. Records of expenditures reimbursements incurred prior to issuing bonds for facilities financed with tax-exempt proceeds (Declaration of Official Intent/Reimbursement Resolutions including all modifications). f. List of all facilities and equipment financed with tax-exempt proceeds. g. Depreciation schedules for depreciable property financed with tax-exempt proceeds. h. Documentation that tracks the purchase and sale of assets financed with tax-exempt proceeds. i. Documentation of timely payment of principal and interest payments on the tax-exempt debt obligation. j. Tracking of all issue proceeds and the transfer of proceeds into the debt service fund as appropriate. k. Documentation that excess earnings from a Reserve Fund is transferred to the Debt Service Fund on an annual basis. Excess earnings are balances in a Reserve Fund that exceed the Reserve Fund requirement. 5. Miscellaneous Documentation to be Assembled and Retained a. Procedures to ensure that the project, while the tax-exempt debt obligation is outstanding, will avoid IRS private business concerns. b. Changes in the project that impact the terms or commitments of the tax-exempt debt obligation are properly documented and necessary certificates or opinions are on file. 6. Additional Undertaking and Activities that Support Sections 1 through 4 above a. The Finance Director will notify the City of Mounds View Bond Counsel, Financial Advisor and Arbitrage Provider of any survey or inquiry by the IRS immediately upon receipt (Usually responses require the review of the above mentioned data and must be in writing. As much time as possible is helpful in preparing the response). b. The Finance Director will consult with the City of Mounds View Bond Counsel, Financial Advisor and Arbitrage Provider before engaging in post-issuance credit enhancement transactions (i.e. bond insurance, letter of credit, or hedging transactions (i.e. interest rate swap, cap). c. The Finance Director will monitor all “qualified tax-exempt debt obligations” within the first calendar year to determine if the limit is exceeded, and if exceeded, will address accordingly. The limit is currently $10,000,000. d. Comply with Continuing Disclosure Requirements i. If applicable, the timely filing of annual information agreed to in the Continuing Disclosure Certificate. ii. Give notice of any Material Event. e. Identify any post-issuance change to terms of bonds which could be treated as a current refunding of “old” bonds by “new” bonds, often referred to as a “reissuance”. f. Confirm whether any “remedial action” in connection with a “change of use” must be treated as a “reissuance”. 7. Compliance with Future Requirements a. Take measure to comply with any future requirements issued beyond the date of these Post-Issuance Debt Compliance Procedures which are essential to preserving the tax-exempt status of this tax- exempt debt obligation. Item No: 8.C. Meeting Date: February 27, 2017 Type of Business: Council Consent Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8717 Adopting a Post-Issuance Debt Compliance Policy Attached is Resolution 8717 adopting a Post-Issuance Debt Compliance policy. The Finance Department informally adopted the attached policy in 2010 when we issued conduit debt to assist Apple Tree Dental acquire and build out their Mounds View location. With the possible issuance of Capital Improvement bonds to finance the construction of a new public works facility, our Financial Advisor (Ehlers) has recommended that the City Council formally adopt this policy. By adopting the attached policy the City Council will demonstrate that the City has taken steps to help insure that all tax-exempt debt obligations will be in compliance with all applicable state and federal regulations regarding the obligations. This policy can be amended at any time and may need to be amended if state or federal regulations change. Staff recommends approval of the attached resolution. Staff has also attached the current compliance procedures list for your review. Respectfully submitted, ________________________ Mark Beer, Finance Director RESOLUTION NO. 8717 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA Adopting a Post-Issuance Debt Compliance Policy WHEREAS, the City Council desires to formally adopt a Post-Issuance Debt Compliance Policy to help insure that all tax-exempt debt obligations will be in compliance with all applicable state and federal regulations regarding the obligations; and WHEREAS, the Finance Director will be designated as the “Compliance Officer” and responsible for administering post-issuance debt compliance; and WHEREAS, the policy can and may need to be amended to reflect changes in state or federal regulations in the future. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View that the Post-Issuance Debt Compliance policy is hereby adopted as provided in the attached policy. Adopted this 27th day of February 2017. __________________________ Carol A. Mueller, Mayor ATTEST: __________________________ Jim Ericson, City Administrator (SEAL) UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MOUNDS VIEW GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF INDEBTEDNESS, SERIES 2017 The City of Mounds View, Minnesota, a duly organized and existing home-rule charter city and political subdivision located in Ramsey County, Minnesota (the “City”), acknowledges itself to be indebted and for value received promises to pay to the City of Spring Lake Park, Minnesota (“Spring Lake Park”) a principal sum not-to-exceed $172,430, plus interest thereon, at the rates set forth in the Resolution (herein defined), but ultimately payable by the City in accordance with the Formula, as defined and located at Exhibit A to that certain Joint Powers Agreement For the Provision of Fire Protection Services, dated December 11, 1990, as amended and supplemented (the “Joint Powers Agreement”). Annual payments of principal and interest hereon, in amounts determined in accordance with the Formula in the aforementioned Joint Powers Agreement, shall be payable February 1 of each year, commencing February 1, 2019. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged and the City Council of the City has obligated itself to levy ad valorem taxes on all taxable property within the City, which taxes may be levied without limitation as to rate or amount. This Certificate is issued pursuant to a resolution adopted by the City Council of the City on February 27, 2017 (the “Resolution”), for the purpose of reimbursing Spring Lake Park for the City’s share of the financing of various items of equipment for fire protection and firefighting purposes by the Spring Lake Park Fire Department, Inc., which is a Minnesota nonprofit corporation providing fire protection and other public safety services to the City, Spring Lake Park, and the City of Blaine, Minnesota. This Certificate is being issued pursuant to and in full conformity with the home-rule charter of the City, and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 412.301 and Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. This Certificate is not subject to optional redemption by the City and is not transferable. The City is also responsible to pay to Spring Lake Park the amount of $4,677.09 before February 1, 2018, which is an amount of interest on this Certificate that is due on said date. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home-rule charter of the City, the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Certificate in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Certificate does not cause the indebtedness of the City to exceed any charter, constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Mounds View, Minnesota, by its City Council, has caused this Certificate to be executed on its behalf by the facsimile or manual signatures of the Mayor and the City Manager and has caused this Certificate to be dated as of the date set forth below. Dated: March 21, 2017. CITY OF MOUNDS VIEW, MINNESOTA City Administrator Mayor 1 RESOLUTION NO. 8718 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION CERTIFYING THE CITY OF MOUNDS VIEW’S SHARE OF INDEBTEDNESS RELATED TO THE CITY OF SPRING LAKE PARK’S $1,090,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2017A, THE PROCEEDS OF WHICH ARE TO BE USED BY THE SPRING LAKE PARK FIRE DEPARTMENT, INC. BE IT RESOLVED By the City Council (the “Council”) of the City of Mounds View, Minnesota (the “City”) as follows: Section 1. Sale of Certificates. 1.01. Background. (a) The City and the cities of Spring Lake Park and Blaine, Minnesota (collectively, the “Cities”) jointly contract for fire protection and other public safety services pursuant to a Joint Powers Agreement For the Provision of Fire Protection Services, dated December 11, 1990 (the “Joint Powers Agreement”). The Joint Powers Agreement has been used in the past to finance the acquisition of various items of equipment for use by the Fire Company, and has been supplemented for a third time (the “Third Supplement”) to authorize the City of Spring Lake Park to issue general obligation equipment certificates of indebtedness to finance the following equipment (the “Equipment”), for use by the Spring Lake Park Fire Department, Inc., which is a Minnesota nonprofit corporation providing fire protection and other public safety services to the Cities: a 75-foot ladder truck equipped with an aerial ladder, fire pump, booster tank, hoses, ground ladders, a “Chief’s” passenger vehicle, and a truck for grass fires. (b) Pursuant to Resolution No. 8714, adopted by this Council on February 13, 2017, the City approved the Third Supplement. The City has been informed by the City of Spring Lake Park that on February 21, 2017 the City of Spring Lake Park sold its General Obligation Equipment Certificates of Indebtedness, Series 2017A, in the original aggregate principal amount of $1,090,000 (the “Certificates”), pursuant to Minnesota Statutes, Section 412.301 and Chapter 475, as amended (collectively, the “Act”). The purpose of this Resolution is to memorialize the sale of the Certificates and certify the City’s obligation to pay a portion of the debt service on the Certificates, pursuant to the payment formula found on Exhibit A to the Joint Powers Agreement (the “Formula”), as such Formula may change from time to time up to the final maturity date of the Certificates on February 1, 2023. 1.02. Interest Rates on the Certificates. The Certificates were sold at a price of $1,144,323.15 (par amount of $1,090,000.00, plus original issue premium of $58,955.65, less underwriter’s discount of $4,632.50), for Certificates bearing interest as follows: 2 Year Interest Rate 2019 3.000% 2020 3.000 2021 3.000 2022 3.000 2023 3.000 1.03. Terms and Principal Amounts of the Certificates. The City of Spring Lake Park will forthwith issue and sell the Certificates pursuant to the Act in the total aggregate principal amount of $1,090,000, originally dated March 21, 2017, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount 2019 $205,000 2020 210,000 2021 220,000 2022 225,000 2023 230,000 1.04. Optional Redemption. The Certificates are not subject to optional redemption or prepayment prior to maturity. Section 2. Form of Mounds View Certificate. 2.01. Execution of the Mounds View Certificate. Under the precepts of the Joint Powers Agreement and Third Supplement thereto, and to evidence its obligation to pay its proportionate share of debt service on the Certificates, this Council finds it is necessary and expedient to the sound financial management of the City to issue its own General Obligation Equipment Certificate of Indebtedness, Series 2017, pursuant to the Act in a principal amount anticipated not to exceed $172,430 (the “Mounds View Certificate”). This Council understands and acknowledges that debt service on the Mounds View Certificate will always be payable by the City in accordance with the final percentages fixed from time to time by the Formula. The Mounds View Certificate will be in substantially the form as attached hereto as Exhibit A. Additionally, the City is responsible to pay to the City of Spring Lake Park the amount of $4,677.09 on February 1, 2018, which is an interest payment due on the Certificates on said date. 2.02. Security. The City of Spring Lake Park has irrevocably pledged its full faith and credit and taxing powers to pay debt service on the Certificates. To reimburse the City of Spring Lake Park for the City’s portion of principal and interest on the Certificates, as evidenced through the Mounds View Certificate, the City hereby irrevocably pledges the full faith and credit and taxing powers of the City, and the City shall levy ad valorem taxes on all taxable property, which taxes may be levied without limitation as to rate or amount. The City will pay principal and interest on the Mounds View Certificate from the general fund of the City, and the general fund may be reimbursed for those advances out of the proceeds of the taxes levied hereto, when collected, and the proceeds of such ad valorem taxes levied are pledged to the payment of the Mounds View Certificate. Taxes levied to pay debt service on the Mounds View Certificate are in the years and amounts as provided for on Exhibit B hereto. 3 2.03. Changes in Formula. The City understands and acknowledges that, as of the date the Certificates were sold, the City’s share of debt service on the Certificates pursuant to the Formula is 15.819%. The City’s contribution to the debt service on the Certificates, as shown on Exhibit A hereto, is $202,343.80. The City further understands and acknowledges that the precise contribution amounts of the City under the Formula may change over time, and the City may be obligated to pay an additional amount, or a reduced amount, of debt service on the Mounds View Certificate if the Formula changes accordingly. Any additional amount of debt service may be provided through the levy of ad valorem taxes, or through payments from the City’s general fund. Any changes in debt service payments under the Mounds View Certificate that differ from the amount provided for in Exhibit A, or through the tax levy chart in Exhibit C, may be made administratively by the City, without further resolution of this Council. 2.04. Certificate as to Registration. The City Administrator is directed to file a certified copy of this Resolution with the Ramsey County Property Records and Revenue Office and to obtain the certificate required by Section 475.63 of the Act. (The remainder of this page is intentionally left blank) S-1 The foregoing resolution was passed and adopted by the City Council of the City of Mounds View, Minnesota, this 27th day of February, 2017. CITY OF MOUNDS VIEW, MINNESOTA ___________________________________ Carol A. Mueller, Mayor Attest: ____________________________________ Jim Ericson, City Administrator EXHIBIT A FORM OF MOUNDS VIEW CERTIFICATE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MOUNDS VIEW GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF INDEBTEDNESS, SERIES 2017 The City of Mounds View, Minnesota, a duly organized and existing home -rule charter city and political subdivision located in Ramsey County, Minnesota (the “City”), acknowledges itself to be indebted and for value received promises to pay to the City of Spring Lake Park, Minnesota (“Spring Lake Park”) a principal sum not-to-exceed $172,430, plus interest thereon, at the rates set forth in the Resolution (herein defined), but ultimately payable by the City in accordance with the Formula, as defined and located at Exhibit A to that certain Joint Powers Agreement For the Provision of Fire Protection Services, dated December 11, 1990, as amended and supplemented (the “Joint Powers Agreement”). Annual payments of principal and interest hereon, in amounts determined in accordance with the Formula in the aforementioned Joint Powers Agreement, shall be payable February 1 of each year, commencing February 1, 2019. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged and the City Council of the City has obligated itself to levy ad valorem taxes on all taxable property within the City, which taxes may be levied without limitation as to rate or amount. This Certificate is issued pursuant to a resolution adopted by the City Council of the City on February 27, 2017 (the “Resolution”), for the purpose of reimbursing Spring Lake Park for the City’s share of the financing of various items of equipment for fire protection and firefighting purposes by the Spring Lake Park Fire Department, Inc., which is a Minnesota nonprofit corporation providing fire protection and other public safety services to the City, Spring Lake Park, and the City of Blaine, Minnesota. This Certificate is being issued pursuant to and in full conformity with the home-rule charter of the City, and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 412.301 and Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. This Certificate is not subject to optional redemption by the City and is not transferable. The City is also responsible to pay to Spring Lake Park the amount of $4,677.09 before February 1, 2018, which is an amount of interest on this Certificate that is due on said date. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home-rule charter of the City, the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Certificate in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Certificate does not cause the indebtedness of the City to exceed any charter, constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Mounds View, Minnesota, by its City Council, has caused this Certificate to be executed on its behalf by the facsimile or manual signatures of the Mayor and the City Manager and has caused this Certificate to be dated as of the date set forth below. Dated: March 21, 2017. CITY OF MOUNDS VIEW, MINNESOTA City Administrator Mayor EXHIBIT B TAX LEVY FOR MOUNDS VIEW CERTIFICATE Year of Tax Levy Year of Tax Collection Amount 2017 2018 $39,481.85 2018 2019 39,290.84 2019 2020 39,905.40 2020 2021 39,639.65 2021 2022 39,348.97 Item No: 8.D. Meeting Date: February 27, 2017 Type of Business: Council Consent Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Resolution 8718 Certifying the City of Mounds View’s Share of Indebtedness Related to the City of Spring Lake Park’s $1,090,000 General Obligation Equipment Certificates of Indebtedness, Series 2017A, the Proceeds of Which Are to be Used By the Spring Lake Park Fire Department, Inc. Introduction: The City as a member of the joint fire department with the Cities of Spring Lake Park and Blaine (SBM Fire Department) from time to time has a need to purchase capital equipment. The three cities have decided that it is in their best interest to finance significant capital purchases with equipment certificates. The City of Spring Lake Park has agreed to be the primary issuer of the equipment certificates. The total cost of equipment to be purchased is $1,109,000. The City Council approved the terms of sale for Equipment Certificates of Indebtedness and a supplement to the Joint Powers Agreement in resolution 8714 on February 13, 2017 which provided authorization to move forward. This is consistent with past bond and certificate issuances. Discussion: The City of Spring Lake Park has generously agreed to act as the conduit for the sale of General Obligation Equipment Certificates of Indebtedness for the three cities. The bond sale has occurred and favorable results will allow the final amount to be reduced to $1,090,000 there was a reoffering premium of $58,956 which covered the issuance costs of $34,340 and the underwriter’s discount of $4,633 and rounding of $983. Each city will pay their pro-rata share based on the formula in the Joint Powers Agreement. Currently our share is 15.819% or $172,427. To formalize the City’s proportionate share of the equipment certificates of indebtedness the City Council would need to adopt the attached resolution and direct the Mayor and City Administrator to sign the attached note acknowledging our obligation to Spring Lake Park for our proportionate share. Recommendation: Staff recommends approval of Resolution 8718. Respectfully submitted, ________________________ Mark Beer Finance Director 495252v1 SJR MU125-11 Kennedy 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis MN 55402-1458 (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com Affirmative Action, Equal Opportunity Employer Graven C H A R T E R E D SCOTT J. RIGGS Attorney at Law Direct Dial (612) 337-9260 Email: sriggs@kennedy-graven.com MEMORANDUM Date: February 23, 2017 To: Jim Ericson, City Administrator From: Scott J. Riggs, City Attorney Re: Mounds View Project Status Report CITY: MU125-11: Administration. General discussions with staff regarding various City matters. Review hospital district resolution and consult with City staff. Matters are presently pending. MU125-14: Public Works Matters. Review eighth amendment to street maintenance joint powers agreement and forward comments/revisions to City staff. Consult with City staff regarding same. Matter is presently pending. MU210-4: Charter Commission Matters. Review Charter language from other cities regarding vacancies and appointments and forward information to City staff. Matter is presently pending. MU210-54: City Code Updates. Awaiting final review by City staff. Work on revision to City Code. Matter is presently pending. MU210-111: General Employment Matters. Agreements have been executed by all parties regarding EEOC matter. Consult with City staff regarding EEOC matter. Consult with City staff regarding personnel matter. Draft administrative leave letter and forward to City staff. Matters are presently pending. & Jim Ericson January 19, 2017 Page 2 495252v1 SJR MU125-11 MU210-221: LMCIT/DVS General. Several notices of legal claims have been presented to the City and have been tendered for defense by the League of Minnesota cities Insurance Trust. Consult with City staff and City Council. Consult with LMCIT attorneys. Consult with City staff regarding settlement matter. Matters are presently pending. MU210-244: G.O. Capital Improvement Bonds, Series 2017. Prepare reimbursement resolution for a possible future capital improvement plan bond. Matter is presently pending. MU210-250: Fire Protection Services JPA/Bond Matter. Review third amendment to joint powers agreement and resolution and provide comments. Consult with City staff and bond counsel regarding matter. Matter is presently pending. MU210-251: Hafiz Azhar Mahmood v. City of Mounds View, et al. This matter has been tendered to the League. Consult with City staff regarding matter. Matter is presently pending. EDA: MU205-47: MWF Housing Project. Review background information regarding project and provide comments to City staff. Matter is presently pending. SJR:jms