HomeMy WebLinkAbout2019.11.04 CC PacketCITY OF
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EST. 1906
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14669 Fitzgerald Avenue North • Hugo, MN 55038
A. CALL TO ORDER
B. ROLL CALL
C. PLEDGE OF ALLEGIANCE
D. APPROVAL OF MINUTES
1. October 21, 2019, City Council Meeting
E. APPROVAL OF AGENDA
F. APPOINTMENTS/PRESENTATIONS
Agenda
HUGO CITY COUNCIL MEETING
HUGO CITY HALL
MONDAY, NOVEMBER 4, 2019 — 7 P.M.
1. Recognition of the Hugo Yellow Ribbon Network — State Representative Bob Dettmer
2. Washington County Historical Society Presentation on New Heritage Center
G. CONSENT AGENDA
All matters listed under the Consent Agenda are considered to be routine by the City Council
and will be enacted by one motion and a roll call vote. If a member of the City Council or the
public wishes to discuss an item, that item will be removed from the Consent Agenda and will
be considered separately.
1. Approval of Claims
2. Approve Annual Performance Review for Public Works Worker Kraig Pettee
3. Approve Annual Performance Review for Community Development Assistant Emily
Weber
4. Approve Resolution Establishing Water and Sewer Rates for 2020
H. UNFINISHED BUSINESS
1. None Scheduled
I. NEW BUSINESS
1. Approve Purchase Agreement Option for City Owned Property
2. Proposed Property Donation - Rich Kettler
J. VISITOR PRESENTATIONS
1. None Scheduled
K. COUNCIL PRESENTATIONS
1. Yellow Ribbon Network Update
L. ADMINISTRATIVE PRESENTATIONS
1. White Bear Lake School District Election on Tuesday, November 5, 2019
2. Public Works Facility Workshop on Tuesday, November 12, 2019
3. White Bear Chamber Legislative Reception on Wednesday, November 13, 2019
4.
M. ADJOURNMENT
BACKGROUND MEMO FOR THE HUGO CITY COUNCIL MEETING
MONDAY, NOVEMBER 4, 2019
DA 1. October 21, 2019, City Council Meeting
Staff recommends Council approve the minutes for the City Council meeting held on October
21, 2109, as presented
F.1 Recognition of the Hugo Yellow Ribbon Network — State Representative Bob Dettmer
State Representative Bob Dettmer will be in attendance to recognize the Hugo Yellow Ribbon.
F.2 Washington County Historical Society Presentation on New Heritage Center
The Washington County Historical Society has launched a $5 million capital campaign for a
Heritage Center to be located at 1862 South Greeley Street in Stillwater. The facility will include
exhibit spaces, climate -controlled storage areas, research library, and space for educational
programs. WCHS Board Treasurer Tom Simonet and Executive Director Brent Peterson will
present their plan to the Council and answer questions.
G.1 Approval of Claims
Staff recommends Council approve the Claims Roster as presented.
G.2 Approve Annual Performance Review for Public Works Worker
Kraig Pettee was hired as a Public Works Maintenance Worker starting November 12, 2018.
Kraig had worked the three previous summers as a seasonal worker. Public Works Director
Scott Anderson recommends Council approve the annual performance review of Public Works
Worker Kraig Pettee.
G.3 Approve Annual Performance Review for Community Development Assistant Emily
Weber
Emily Weber was hired as a Community Development Assistant starting November 26, 2018.
Community Development Director Rachel Juba recommends Council approve the annual
performance review of Community Development Assistant Emily Weber.
GA Approve Resolution Establishing Water and Sewer Rates for 2020
Last year the City Council adopted a resolution approving a pro -forma financial guide for water
and sanitary sewer operations and established service rates. The Finance Department was
directed to update the financial guide and review service rates on an annual basis going forward.
The Finance Director has updated the pro -forma for the 2020 fiscal year and the service rates
needed to fund operations. Staff recommends Council approve the resolution adopting the pro -
forma financial guide for water and sanitary sewer operations for the 2020 fiscal year and the
recommended rate schedule.
I.1 Approve Option/Purchase Agreement for City Owned Property
At its Tuesday, October 15, 2019, meeting the EDA was presented with a concept for the City
owned property across from City Hall by Tony and Michele Harmening. The Harmenings would
like to develop and own a steak house restaurant on the City owned property along Egg Lake and
asked the EDA to enter into a purchase agreement for the City owned property. The EDA agreed
that the concept generally met the development criteria the City has for the property and directed
staff to negotiate a purchase agreement with the Harmenings for City Council approval. Staff has
been working with the City Attorney on the option/purchase agreement. Staff recommends the
City Council approve the draft option/purchase agreement subject to the City Attorney review
and approval.
I.2 Proposed Property Donation - Rich Kettler
Rich Kettler is proposing to donate two lots, located north of 140th Street North and west of
Fenway Boulevard North, to the City of Hugo. Staff will present findings to the City Council at
the meeting. Staff recommends the City Council discuss the proposed donation and recommends
the City Council direct staff to draft a quit claim deed to accept the property donation from Rich
Kettler.
K.1 Yellow Ribbon Network Update
Council Member Chuck Haas and Phil Klein will report to Council on the Yellow Ribbon
Network activities held recently.
1.1 White Bear Lake School District Election on Tuesdav, November 5, 2019
The White Bear Lake School District will be holding an election on Tuesday, November 5, 2019.
Hugo residents in the WBL School District (ISD 624) can cast their vote at their normal polling
location from 7 a.m. to 8 p.m. Absentee voting can be done at the Headwaters Service Center
until Monday, November 4th at 5:00 p.m. On the ballot are three school board member seats and
a bond issue question.
1.2 Public Works Facility Workshop on Tuesday, November 12, 2019
Council has scheduled a workshop for Tuesday, November 12 at 5:00 p.m. at the Rice Lake
Centre to discuss the space needs study performed by Oertel Architects, Ltd. Architect Jeff
Oertel will report the findings of the space need study and present options for an expansion of
the current building.
1.2 White Bear Chamber Legislative Reception on Tuesday, November 13, 2019
The Council has scheduled a meeting to attend the White Bear Area Chamber of Commerce
Legislative Reception to be held Wednesday, November 13, 2019, from 5-7:30 p.m. at the Tria
Restaurant in North Oaks.
M. Adiournment
00
14669 Fitzgerald Avenue North - Hugo. MN 55038
Call to Order
Minutes
HUGO CITY COUNCIL MEETING
HUGO CITY HALL
MONDAY, OCTOBER 21, 2019 - 7 P.M.
Mayor Weidt called the meeting to order at 7:00 p.m.
PRESENT: Haas, Klein, Miron, Petryk, Weidt
ABSENT: None
ALSO PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney
Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau
October 4, 2019, National Manufacturing Day at Wilson Tool
Miron made motion, Klein seconded, to approve the minutes for the National Manufacturing
Day events at Wilson Tool on October 4, 2019, as presented.
All Ayes. Motion carried.
October 5, 2019, Citywide Bus Tour
Klein made motion, Miron seconded, to approve the minutes for the Citywide Bus Tour held on
October 5, 2019, as presented.
All Ayes. Motion carried.
October 5, 2019, Fire Department Open House
Klein made motion, Petryk seconded, to approve the minutes for the Fire Department Open
House held on October 5, 2019, as presented.
All Ayes. Motion carried.
October 7, 2019, City Council Meeting
Klein made motion, Miron seconded, to approve the minutes for the regular City Council
meeting held on October 7, 2019, as presented.
All Ayes. Motion carried.
October 8, 2019, JD3 Repair Project Informational Meeting
Klein made motion, Petryk seconded, to approve the minutes for the Informational Meeting on
the JD3 Repair Project held on October 8, 2019, as presented.
All Ayes. Motion carried.
Hugo City Council Meeting Minutes for October 21, 2019
Page 2 of 6
October 9, 2019, Press Publications Open House
Miron made motion, Klein seconded, to approve the minutes for the Press Publications Open
House held on October 9, 2019, as presented.
All Ayes. Motion carried.
Approval of Agenda
Weidt made motion, Klein seconded, to approve the agenda as presented.
All Ayes. Motion carried.
Donation by The Fry Group to the Hugo Yellow Ribbon Network
A free BBQ Cookout and Fundraiser was held in Lions Park on September 28, 2019, sponsored
by the Dave and Monica Fry. The Fry Group presented money to the Hugo Yellow Ribbon
Network that was collected in donations at the event.
Approval of the Consent Agenda
Klein made motion, Petryk seconded, to approve the following Consent Agenda:
Approve Claims Roster
2. Approve Annual Performance Review for Finance Coordinator Anna Wobse
3. Approve Resolution Declaring Polling Place Locations for 2020
4. Approve Pay Voucher No. 4 to Dresel Contracting for 130th Street Improvement Project
5. Approve Pay Voucher No. 6 to CB&I, LLC, for Water Tower No. 4
6. Approve Resolutions Approving Site Plan and PUD Amendment for Heartland Credit
Union
All Ayes. Motion carried.
Approve Claims Roster
Adoption of the Consent Agenda approved the Claims Roster as presented.
Approve Annual Performance Review for Finance Coordinator Anna Wobse
Anna Wobse was hired as the City's Accounting Clerk on October 27, 2008, and has worked
under the direction of Finance Director Ron Otkin in accounts payable and payroll functions. At
its March 19, 2018, meeting, Council approved Anna as the new Finance Coordinator. Adoption
of the Consent Agenda approved the annual performance review for Finance Coordinator Anna
Wobse.
Hugo City Council Meeting Minutes for October 21, 2019
Page 3 of 6
Approve Resolution Declaring Polling Place Locations for 2020
State Statute requires municipalities to designate precinct polling places for all elections for the
year by December 3lst of the prior year. Adoption of the Consent Agenda approved
RESOLUTION 2019-42 DESIGNATING PRECINCT POLLING LOCATIONS FOR THE
2018 ELECTIONS IN THE CITY OF HUGO.
Approve Pay Voucher No. 4 to Dresel Contracting for 130th Street Improvement Project
The City had received Pay Voucher No. 4 from Dresel Contracting for work done on the 130th
Street Improvement Project. Staff had reviewed the pay request and found it acceptable for work
certified through September 30, 2019. Adoption of the Consent Agenda approved payment in
the amount of $36,000.17 to Dressel Contracting for the 130th Street Improvement Project
Approve Pay Voucher No. 6 to CB&I, LLC, for Water Tower No. 4
The City had received Pay Voucher No. 6 from CB&I, LLC, for work on the Water Tower No.4
project. Staff had reviewed the pay request and found it acceptable for work certified through
September 30, 2019. Adoption of the Consent Agenda approved payment in the amount of
$226,852.70 to CB&I, LLC, for the Water Tower No. 4 project.
Approve Resolutions Approving Site Plan and PUD Amendment for Heartland Credit
Union
LaMacchia Group, on behalf of Heartland Credit Union, had requested site plan approval and a
PUD amendment for a 2,470 square foot retail bank branch building. The property is located on
the corner of Victor Hugo Boulevard North and Frenchman Road and is within the Victor
Gardens North Village development. At the October 10, 2019, Planning Commission meeting,
the Planning Commission recommended approval of the site plan and PUD amendment to the
City Council, subject to the conditions listed in the resolution. Adoption of the Consent Agenda
approved RESOLUTION 2019-43 APPROVING A SITE PLAN AND PUD AMENDMENT
FOR LAMACCHIA GROUP FOR A HEARTLAND CREDIT UNION BANK ON THE
PROPERTY LOCATED NORTH OF FRENCHMAN ROAD/CSAH 8 AND EAST OF
VICTOR HUGO BOULEVARD NORTH.
Update on Carnelian -Marine -St. Croix Watershed District
City Administrator Bryan Bear had attended the meeting on Wednesday, October 9, 2109, held
by the Carnelian -Marine -St. Croix Watershed District to present their proposed 2020 fiscal year
budget and levy for the district, which was said to have increased significantly. As directed by
Council at their October 7th meeting, Bear invited the CMSCWD Administrator Mike Isensee to
attend a Council meeting to present information and answer questions.
Insensee was in attendance with Board Managers Wade Johnson, President, and Kristin Tuenge,
Treasurer. There were currently two vacant positions on the board. Isensee provided background
on the watershed district and their ten year management plan that focused on water quality
projects (60% of their budget) and water quality protection and improvements. He stated that the
district had been very successful in securing large grants and needed an $180,000 levy increases
Hugo City Council Meeting Minutes for October 21, 2019
Page 4 of 6
to meet the matches for their grant dollars. He provided information on the proposed projects
and stated that even with the proposed increase, the CMSCWD is still the lowest levied district
in Washington County. He talked about how the levy had maintained a conservative budget over
the years, but now there are upcoming grant funds available that need to be matched. The
proposed 2020 budget is $1,296,088, and subtracting $466,900 in grants, the proposed levy
would be $770,000, an $180,000 increase.
There was discussion on how the CMSCWD could spread out projects over time to avoid huge
levy increases. Insensee stated their goal was to improve their success with grants; partnerships
and external funding sources will be the way to keep them moving forward. The Council
encouraged transparency credited them for what they are doing.
CSAH 8 Trail Improvements & Stormwater Reuse
City Engineer Mark Erichson explained how the CSAH 8 Stormwater Reuse Project is related to
the City's goal to reduce the use of potable drinking water drawn from the aquifer for irrigation
purposes. This project would irrigate approximately six acres of the median and boulevard for
the length of the County road from Elmcrest to Highway 61. It was estimated to utilize
approximately 4-million gallons of stormwater annually for irrigation. In 2017, the City had
received a $60,000 grant from the Rice Creek Watershed District as part of their Urban
Stormwater Remediation Cost -Share Program that needed to be used by 2019. Erichson stated
that the district would likely provide an extension. The City was recently notified they received
$50,000 as part of a Metropolitan Council Stormwater Grant. The total anticipated project cost
was $545,000 with a total of $110,000 secured in grants to offset the City share of the costs. The
unfunded amount was $435,000. This project did not have a reimbursement component as other
projects do. Erichson stated he had discussions with the finance director who indicated there
would be enough money in the stormwater fund, but it would limit the ability to do stormwater
pond maintenance. Erichson said they were still looking for grant opportunities and can bring
back to Council more details of the stormwater fund in relation to this project.
Council questioned what Lino Lakes was doing on their end of the county road, whether the
Washington County could contribute to the project, and if this project could be connected to
future projects. Staff responded that there was not much landscaping in the Lino Lakes portion of
the boulevard. Washington County could be asked to help with the project, but it's not their
obligation to do the landscaping. Also, there was a sizing component to connecting to other
developments, but it could be evaluated moving forward.
There was a consensus to move forward with asking the Rice Creek Watershed for an extension
of the Urban Stormwater Remediation Cost -Share Program Grant.
Road Capital Improvement Plan and 2020 Project Selection
City Engineer Mark Erichson presented information on the proposed 2020-2025 Capital
Improvement Plan. He explained the staff had evaluated City streets by conducting pavement
condition ratings and road tours to prioritize improvement projects. The Capital Improvement
Plan (CIP) provided a schedule for the various roadway improvements that are necessary to
maintain the City streets in an effective and efficient manner. Erichson highlighted the proposed
areas and described what each project would be and the costs based on type of improvements
anticipated with the projects. Erichson stated he had met with the City's finance director and
Hugo City Council Meeting Minutes for October 21, 2019
Page 5 of 6
there would be funding to do these projects without bonding.
Erichson talked about the reclamation of Goodview Avenue as the improvement project
identified to be completed in 2020. If this was approved by Council, a public information
meeting would be held in November, 2019, and construction would begin in spring, 2020.
Miron made motion, Klein seconded, to approve RESOLUTION 2019-44 APPROVING THE
2020 — 2025 CAPITAL IMPROVEMENT PLAN.
All Ayes. Motion carried.
Klein made motion, Petryk seconded, to approve RESOLUTION 2019 -45 ORDERING
PREPARATION OF A FEASIBILITY REPORT FOR PUBLIC IMPROVEMENTS TO ALL
OR PORTIONS OF ROADWAYS IDENTIFIED AS THE 2020 GOODVIEW AVENUE
STREET IMPROVEMENT PROJECT.
All Ayes. Motion carried.
ADUrove Advertisement for Ouotes for JD 2 Minor Maintenance Proiect
City Engineer Mark Erichson explained that the City has an agreement with the Rice Creek
Watershed District (RCWD) pertaining to the maintenance of Judicial Ditch 2. Every year the
District dedicates $40,000 to Hugo for maintaining the ditch, keeping it free of obstructions and
operating as originally intended. Hugo had periodically performed maintenance, but no
significant projects had been completed recently. The City has approximately $150,000
available to perform maintenance, and if the project proceeds into 2020, an additional $40,000
would be available. The RCWD had indicated it might have some annual maintenance funds
available as well. Plans and specifications had been completed for the entire section of ditch
Hugo has yet to maintain, which is from 3/4 mile east of Harrow Avenue to TH 61 then
southeast to 165th Street. The project specifications are set up to limit the contractor to available
funds, yet maximize how much the City can complete with this contract. Erichson stated doing a
larger project was a more cost effective approach.
Miron made motion, Klein seconded, to approve RESOLUTION 2019-46 APPROVING
PLANS AND SPECIFICATIONS AND ORDERING QUOTE REQUEST FOR THE 2019
JUDICIAL DITCH 2 MAINTENANCE PROJECT.
All Ayes. Motion carried.
Yellow Ribbon Network Update
Council Member Chuck Haas and Council Member Phil Klein reported to Council on the Yellow
Ribbon Network activities held recently. The next Burger Night will be sponsored by the
Highway Federal Credit Union. Haas shared photos including one of a letter from Health
Partners stating Jeff Loeks received a grant of $1,000 to donate to any charity, and the Loeks
chose the Hugo YRN. The YRN received a thank you from the 133rd Airwing for care packages
from the Lutheran Bible Camp. Fleetfarm is donating a pallet of care packages and 3M is
donating more command hooks. The YRN is receiving many requests for snowplowing and
meals.
Schedule Workshop to Discuss Possible Public Works Facility Expansion
Consistent with the Council's goals and authorized by the Council, staff had been working with
Hugo City Council Meeting Minutes for October 21, 2019
Page 6 of 6
Oertel Architects, Ltd. on a space needs study for the Public Works Department. City
Administrator Bryan Bear requested the City Council schedule a workshop with Architect Jeff
Oertel who will report the findings of the space need study and present options for an expansion
of the current building.
Petryk made motion, Kelan seconded, to schedule a workshop for Tuesday, November 12 at 5:00
p.m. at the Rice Lake Centre.
All Ayes. Motion carried.
Adjournment
Klein made motion, Petryk seconded, to adjourn at 8:13 p.m.
All Ayes. Motion carried.
Respectfully submitted,
Michele Lindau,
City Clerk
Preserving 7:) Tomorrow's
� HISTORY �
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Ac
WASHINGTON COUNTY HISTORICAL SOCIETY
In 1934 a group of individuals gathered at
the Stillwater Public Library to "investigate
and study the history of Washington County"
and to "provide for the collection and
preservation" of our history and the
Washington County
Historical Society
was formed.
For more than
ninety years, WCHS
has focused on
purchasing historic
buildings and land
in order to tell the
stories of the area. Initially storing collections in a
room in the library, it quickly became necessary
to expand. After incorporating in 1941, the
Warden's House of the Stillwater Prison was
purchased from the State of Minnesota. The
Warden's House is the only Minnesota Territorial
building remaining, as well as the second
oldest continuously operating house museum
in the state. It was added to the National
Register of Historic Places in 1974.
During the 1970s, the Historical Society took
over the tours at the Hay Lake School building
and later purchased the school from the Forest
Lake School District. At the same time, an 1868
log house, constructed by Johannes Erickson,
a Swedish immigrant, was moved onto the site.
Both these buildings have also been added to
the National Register of Historic Places.
In 1996, with the collections growing rapidly,
the WCHS reconstructed the Warden's House
carriage house for use as storage and a
research facility. Now, twenty years later,
the collections again have grown to a point
to where more storage is needed. More
importantly, the organization is now ready to
expand its offerings to provide a substantial
resource currently lacking in this community:
a Heritage Center, to include dedicated
exhibit space, up-to-date research facilities,
and classroom/meeting areas. This new Center
will confirm the role Washington County played
in both the early days of statehood as well
as allow new opportunities to highlight the
important role it continues to play in the
ongoing developments of our state and
nation. It is to this end that the Board of Director's
approved launching a $5 million capital
campaign in
January, 2019. - , rx
{
f -
OUR MISSION
and OFFERINGS
The Historical Society operates
three historic sites that showcase
19th century heritage of Washington
County, Minnesota:
WCHS's mission is to collect, preserve, and disseminate
Warden's House Museum, Stillwater -
the history of Washington County and the State of
Minnesota. The ultimate goal is to provide the
guilt in 1853 as the residence of the
opportunity for all to learn about and enjoy this area's
Minnesota Territorial Prison warden,
unique history and build a sense of community heritage.
the Museum consists of 14 rooms
decorated in the late 19th and
T WCHS: Collects and preserves
early 20th century style.
cultural artifacts and
Sponsors - vintage documents for future
Hay Lake School and Erickson
baseball t'- generations
Log Home, Scandia - The buildings
illustrate pioneer life of the
Offers to help
area's 19th-century
expertise
community- • - Writes and publishes books
Scandinavian immigrants.
conserve • - • about County history
9
I
Maintains an informative
history web site
(www.wchsmn.org)
Curates 150 years of history
in the Carriage House
library collection
w
I
Eder School Museum, located at
the Oakdale Nature Center, offers
programs by the Historical Society
during the summer.
THE ISSUES FACING
W C H S TODAY
While WCHS's house and school museums
provide excellent interpretation of pioneer
and Victorian life, early schooling, and even
life behind bars, these facilities do not
have space to adequately highlight other
parts of Washington County, its business
and agricultural history, and events that
occurred before and after the mid- to late
nineteenth century. The interpretive sites
can not tell the stories of Native American
populations, railroads, logging, agriculture,
women's suffrage, or prohibition in the
County, all of which have had colorful and
important roles in the area.
Most of the artifacts and records collected by WCHS
are stored at the Warden's House Museum and
Carriage House but most are not available for display
and are not properly stored for conservation. Some of
the issues are:
Currently, the Washington County Historical Society is the only organization
that is collecting the history of Washington County and preserving its stories.
In the near future, our present facilities will run out of space, which will
severely affect our ability to collect, preserve, and exhibit the County's
historical artifacts and records. In addition, there is no centralized location
to create exhibits to showcase the history of this area or to bring in
traveling exhibits that will complement our collection.
�k�
OUR FUTURE PLANS
The WCHS purchased a building at 1862
South Greeley Street in 2013. Fortunately,
part of the purchase included a contract
with MNDOT to rent the building while the
new bridge over the river was being built,
helping to completely pay off the building.
The remaining cost of the building was
provided by the Margaret Rivers Fund,
the Hardenbergh Foundation, Washington
County, the City of Stillwater, and many
generous donors. This building offers
14,000 square feet of space as well
as ample parking and easy access to
Highway 36. The new building will allow the
Historical Society to become an even
greater resource to the County and all its
visitors. The Heritage Center will include:
N
Three exhibit galleries
which will provide
permanent and
temporary exhibit space
showcasing local history
Multiple display
areas to highlight
smaller exhibits
Expanded space
for larger and more
comprehensive
education programs
Outright gifts:
Checks are
payable
to the
WCHS.
Long Term Pledges:
Pledges payable over a
period of three or five years
are imperative to reaching
our goal, An initial investment
of 10% is encouraged, with
the balance to be paid in
monthly, quarterly,
semi-annual or annual
installments at the
donor's discretion.
7
■
IRA contributions:
You may contribute
directly from your
IRA, eliminating
any taxes on
appreciated
investments.
Non -cash Gifts: Gifts such
as securities (stocks, bonds),
real estate (homes,buildings,
land) and personal property
(autos, artwork, antiques,
etc.) are also anyoption. A
gift of stock, for example,
allows you to avoid capital
gains taxes andgives you a
tax deduction for the current
value of your stock. Please
consult youraccountant or
personal financial advisor
for the tax advantages of
non -cash gifts.
EXAMPLES OF POSSIBLE GIFT PAYMENTS
Total gift 10% Semi -Annual Quarterly Monthly
Initial Gift
o
JOiiN BUNK
J
�o
r
NAMING OPPORTUNITIES
Several opportunities are available for individuals or
businesses wishing to identify themselves with a particular
area in the new building. These include: Three Exhibit
halls, Classroom, Lobby and the building itself. Additional
information is available.
WASHINGTON COUNTY HISTORICAL SOCIETY
City of Hugo Claims
November 4, 2019
G. 1
Vendor Invoice Amount Description Department
Alex Air Apparatus Inc INVA0232 $ 2,205.00 Veridian Turnout Coat & Pants Fire Dept
Allied 100 LLC - AED Superstore 1499822 $ 460.81 . AED Heart Smart Pads & Batteries Fire Dept
Allstream 16441178 $ 93.10 Fax Lines Administration
Aspen Mills
245700
104.90
Alpha Zip Boots
Fire Dept
Aspen Mills
-.-$
245701
$ 208.89
EMS Pants, Shirt, Patches & Zip Boots
Fire D2pt
Aspen Mills
246006
$ 32.50 Zipper Replacement
Fire Dept
_
Baller, Scott
CLAIM
$ 275.00 Annual Institute for Bldg Officials - Septic Systems
Building Inspections
Battery Products Inc
Bieniek, Bob
59521
_
$ 192.27 Batteries
Fire Dept
CLAIM
$ 800.14 MSFCA Chiefs Conference Expenses
$ 144.55 Medical Supplies
Fire Dept
Bound Tree Medical LLC
83384904
Fire Dept
Capstone Public Sector Solutions
1068
$ 450.00 Firefighter Officer Training
Fire Dept
Century College
711340
$ 675.00 CEU Program - RIT/Survival/Collapse . Fire Dept
$ 68.97 Fire Station Phone Lines `Fire Dept
$ 109.99 Work Boot Reimbursement Street Dept
$ 1,006.14 Laserfiche License Administration
$ 372.00 2019 Facility Wi-Fi Various
$ 180.00 Calibration of Gas Monitors Fire D t
$ 651.90 MSFCA Chiefs Conference Expenses Fire Dept
$ 2.25 Business Internet thru November 14) Fire Dept
$ 160.06 Business Internet (thru November 27) Fire Dept
$ 597.23 MSFCA Chiefs Conference Expenses Fire Dept
Century Link
Christianson, Paul
651 429-3212
CLAIM
City of Roseville
227043
City of Roseville
227056
Clare 's Safety Equipment Inc
184891
Colvard, Kevin
CLAIM
Comcast
10/5/2019
Comcast
10/18/2019
Compton Jr, Jim
CLAIM
Core & Main LP
L376061
$ 1,117.04 Repair Parts
Water Utility
Care & Main LP
L424822
_Hydrant
$ 163.15 Repair air Clams
I Water Utility
Custom Cap & Tire LLC
270022290
$ 1,560.00
Tires - Unit #103
1 Parks Dept
Custom Cap & Tire LLC
270022290
$ 1,560.00
Tires - Unit #110 Parks Dept
Custom Cap & Tire LLC
270022290
$ 1,560.00
Tires - Unit #115 Street Debt
Custom Cap & Tire LLC
270022290
1 $ 440.00
Tires - Unit #316 Stormwater Fund
Drew, Matt
CLAIM
$ 64.12
_
Hose Testing Drill Supplies 'Fire Dept
MSFCA Chiefs Conference Expenses Fire De t
Tracer Lights & Installation - Unit #CV2 Fire Dept
Tracer Lights & Installation - Unit #U1 _ Fire Dept
SCBA Replacement Lens & Testing Fire Dept _
Cold Weather Gear Engineering Dept
Synfilm Oil (Lift Station Pumps) Sewer Utility
Warning L' . ht - Lift Station No. 4 Sewer Utility
Duncanson, Gina
CLAIM
$ 844.10
Emergency Automotive Technol ies Inc
DL081919-21 $ 1,771.20
- DL081919-21 $ 1,771.20
.Emergency Automotive Technologies Inc
EmergencTReseonse Solutions
13843
$ 216.09
Finn an, Liz
CLAIM
$ 109.99
General Repair Service
70528
$ 603.50
Grainger
9331321167
$ 98.41
H & L Mesabi
4684
$ 663.08
Parts - Unit #304-C
Street Dept
Hach Comp'a
11675405
$ 167.41
Water Testing Supplies
Water Utility
Fire Dept
Hisdahl Inc
16800
$ 7.35
Par Ta s
Hoernemann, Ross
CLAIM
$ 967.65
MSFCA Chiefs Conference Expenses
Fire Dept
Parks Dept
Holiday Companies
134644002
$ 25.73
Firewood for Outdoor Movie Night _ _
Lumber & Nails - Catch Basin Repairs
Home Depot Credit Services
4020750
$ 50.23
Stormwater Fund
Hugo Equipment Company
140521
IN2713164
$ 435.00
Vent Master Saw Blades
Fire Dept
Innovative Office Solutions LLC
$ 67.23
Envelope Glue & Correction Tape _
Breakroom Supplies
Administration
Gen Gov't Bldgs
Innovative Office Solutions LLC
IN2713164
$ 104.71
Innovative Office Solutions LLC
IN2715332
$ 80,19
Markers, Pencils, Adding Machine Ribbons
Administration
Innovative Office Solutions LLC
IN2715332
$ 335.37
Storage Boxes
Water Bacteria Testing
Finance Dept
Water Utility
Instrumental Research Inc
2146
$ 150.00
Jensen, David
CLAIM
$ 814.58
MSFCA Chiefs Conference Expenses Fire Dept
Portable Toilet Rental - Lions Park Parks Dept
Jimmy's Johnnys Inc
156197
$ 328.00
Jimm 's Johnnys Inc
156198
$ 127.00
Portable Toilet Rental - Oakshore Park Parks Dept
Jimmy's Johnnys Inc
156199
$ 127.00
Portable Toilet Rental - Oneka Lake Park Parks Dept
Jimmy's Johnnys Inc
156200
$ 127.00
Portable Toilet Rental - Beaver Ponds Park Parks Dept
Portable Toilet Rental - Diamond Point Park Parks Dept
Portable Toilet Rental - Frog Hollow Park Parks De t
Portable Toilet Rental - Hanifl Park Parks D t
Jimmy's Johnnys Inc
156201
$ 127.00
Jimmy's Johnnys Inc
156202
$ 127.00
Jimmy's Johnnys Inc
156203
$ 508.00
Jimmy's Johnnys Inc
156204
$ 127.00
Portable Toilet Rental - Valjean Park
Parks Dept
Jimmy's Johnnys Inc
156205
$ 127.00
Portable Toilet Rental - Arbre Park
Parks Dept
Parks Dept
Parks Dept
Jimmy's Johnnys Inc
156206
$ 127.00
Portable Toilet Rental - Heritage Ponds Park
Jimmy's Johnnys Inc
156207
$ 127.00
Portable Toilet Rental - McCollar Park
Justin Taylor Companies LLC
294246
$ 150.00
Black Dirt - Catch Basin Repairs
Stormwater Fund
Kindelberger, Brian
CLAIM
$ 577.84
MSFCA Chiefs Conference Exp2nses
Fire Dept
Kirvida Fire
8266
$ 2,869.58
Water Tank & Install - Unit #ATV1
Fire Dept
Laughlin's Pest Control
30222
$ 85.00
October Pest Control Service (CH)
Gen Govt Bldgs
League of Minnesota Cities
311565
$ 55.00
LMC/Metro Cities Regional Meeting - Bryan Bear
Administration
League of Minnesota Cities
311565
$ 30.00
MAMA Meeting - Bryan Bear
Administration
Light Switch LLC
1235
$ 1,142.52
Replacement L hts Well Houses
Water Utility
Light Switch LLC
1238
$ _ 45.00
$ 199.80
$ 52.32
Light Brackets (CH)
Gen Gov't Bldgs
Water Utility
Light Switch LLC
1242
Replacement Lights (Water Tower No. 3
Meeting Mileage
Lindau, Michele
CLAIM
City Clerk
Page 1
City of Hugo Claims
November 4, 2019
G. 1
Vendor
Lindau, Michele
MailFinance _
MailFinance
Invoice Amount Description Department
3
CLAIM $ 15.42 HDMI Cables jAmazon Administration
N7974108 $ 68.99 Meter Rental - September Administration
N7974108 $ 68.99 . Meter Rental - October Administration
MailFinance
N7974108
$ 68.99 Meter Rental - November
Administration
McCullough, Ryan
CLAIM
$ 99.99 Cold Weather Gear
$ 824.14 MSFCA Chiefs Conference Expenses
$ 144.09 Concrete & Bituminous Ins ections - 130th Street
Parks Dept
Millard, Doug
I CLAIM
Fire Dept
MN Dept of Transportation
P00010843
Street Reconstruction
North Memorial
8885020
$ 577.50 EMIR Refresher Course 22
Fire Dept
Palm uist, Jason
I CLAIM
$ 778.19 Training Room & Active 911 Technology Upgrades
Fire Dept
Rihm Kenworth �_
3036844G
_
$ 682.36 Parts - Unit #209 Sewer Utility
$ 1,100.35 Asphalt Street Dept
Schifsk T.A.). & Sons Inc 65288
Schifsk T.A. & Sons Inc 65329
$ 1,175.72
$ 1,021.40
$ 2,851.80
Asphalt Street Dept
Tech Labor - Lift Station No. 5 Sewer Utility,
Tech Labor & Parts - Lift Station No. 7 Sewer Utilif
Schroeder Process Automation LLC
2052
Schroeder Process Automation LLC
2053
Schroeder Process Automation LLC
2059
$ 306.40
Tech Labor - Lift Station No. 5
Sewer Utility
Silver Star Industries Radco - Blaine
BLN-58860-01
$ 799.95
Cap -Pack Storage Unit - Unit #CV2
Fire Dept
SiteOne Landscape Supply.LLC
94983600-001
$ 152.49
Irrigation Hardware
Parks Dept
SiteOne Landscape Supply LLC
94983600-001
95335495-601
$ 88.90
Suction Pumps - Catch Basins
Stormwater Fund
SiteOne Landscape Supply LLC
$ 370.63
$ 838.75
Irrigation Hardware
Disability Premium
Parks Dept
Finance Dept
Sun Life Financial
November
S nchrony Bank
287LEHVKHYS
$ 34.76
Shop Supplies
Public Works
T-Mobile
870254054
$ 1,816.68
Cellular Phone Char es
Various
T-Mobile
870254054
$ 535.62
Equipment Purchases
Public Works
Toshiba Financial Services
5007699471
$ 175.23
November Copier Lease Payment
Overage Charges (B & W)
Overage Charges (Color)
Parts - Unit #304
Cellular Phone Charges
Fire Dept
Toshiba Financial Services
5007699471
5007699471
$ 1.74
Fire D . -)t
Toshiba Financial Services
$ 14.23
$ 230.80
$ 40.02
Fire Dept
Street Dept
Fire Dept
Tri-State Bobcat
A63784
Verizon Wireless
9840399684
Walser Polar Chevrolet
40692P22
$ 104.95
Parts - Unit #106-13
Water & Sewer
Walser Polar Chevrolet 408361322 $ 185.97
Washington County 1 165195 $ 4,429.86
White Bear Area Chamber of Commerce_ 15206 $ 540.00
WSB & Associates August $ 101 246.00
Total Claims for November 4, 2019 $ 153,115.00
Parts - Unit #108-04
Parks Dept
800 Radio User Fees - July thru September
Fire D2pt
MembershipRenewal
Dues/Memberships
Engineering,Fees - See Attached Breakdown
Various
Page 2
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EST. 1506
14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.ci.hugo.mn.us
TO: Honorable Mayor Tom Weidt and Members of the City Council
FROM: Ron Otkin, Finance Director
SUBJECT: 2020 Water and Sewer Service Rates
DATE: For the City Council Meeting of November 4, 2019
DESIRED COUNCIL ACTION
Adoption of Resolution Approving a Pro Forma Financial Guide for Water and Sanitary Sewer Operations for the 2020
Fiscal Year and Establishing Service Rates.
BRIEF HISTORY
Over the last two years the Finance Department has prepared the water and sewer rate schedules rather than
outsourcing the task to a consulting firm. The Finance Department spent a considerable amount of hours collecting,
organizing, and analyzing water usage information. With the help of Billing Clerk Jodie Guareschi and Finance
Coordinator Anna Wobse, staff is ready to recommend water and sanitary sewer rates for the 2020 fiscal year.
PRO FORMA FINANCIAL GUIDE
In order to develop service rates staff developed a pro forma financial guide (basically a budget) for the water and
sewer departments. Staff feels that the spending items identified in the guide reflect the true and actual expenses for
the services being provided. Funds for large repair items (such as pump repairs, water main breaks, lift station rebuilds)
have been identified separately. The water budget includes funds to continue the radio read meter change out
program. Funds have also been allocated for the purchase of smart irrigation system controllers that could be sold at a
discount to property owners to help them manage outdoor water use more efficiently. Staff is hoping that grant funds
will be awarded by the Met Council that could kick-start this program.
The wages portion of the water and sewer operating budget includes two full-time maintenance workers and a portion
of the accounting clerk/administrative assistant position. This clerical position contends with the paperwork and
increasing number of a -mails and phone calls and has certainly freed up the public works director's time to attend to
more pressing matters.
RAINFAI_I
Mother Nature dropped 19.40 inches of rain during the peak outdoor usage period (June thru September) in 2019,
compared with 17.91 during the same period in 2018. The average rainfall for this period is 15.67 inches.
2020 Water and Sewer Rates Memo
AVERAGE QUARTERLY USAGE LEVELS AND PRICE POINTS
Water rates have been crafted around the quarterly residential usage levels from 2017 and 2018. These usage levels
and rates are as follows:
Average Winter Usage:
11,648 gallons
First 11,000 gallons billed at $1.00 per thousand gallons
Average Spring Usage:
20,635 gallons
Next 9,000 gallons billed at $2.00 per thousand gallons
Average Summer Usage:
29,438 gallons
Next 9,000 gallons billed at $3.00 per thousand gallons
Average Fall Usage:
12,101 gallons
Over 29,000 gallons billed at $4.88 per thousand gallons
The base charge will increase from $31 per quarter to $34. This revenue will offset annual depreciation and allows us to
keep lower usage rates for low -end water users.
TRUE CONSERVATION RATES
A true conservation rate schedule seeks to reward low -end users with the lowest rate while encouraging everyone to
use water efficiently. The recommended water rate schedule will allow for the recapture of all operating and
depreciation expenses.
With the recommended rate schedule, all 3,320 residential accounts will experience an annual increase of $12 in their
water bills due to the increase in the quarterly base charge. Of course, their quarterly bills will fluctuate based on water
usage.
MULTI -FAMILY RESIDENTIAL RATES
The City has 187 Multi -Family accounts that contain 1,301 dwelling units. Prior to 2018 these accounts were billed the
same as single-family residential accounts. But my analysis shows that these accounts use 45% less water since their
irrigation is metered separately (and billed at the highest rate). Staff is recommending retaining just one rate level -
$2.00 per thousand gallons.
With the recommended rate schedule, multi -family accounts will see an annual increase of $12 in their water bills due
to the increase in the quarterly base charge.
COMMERCIAL AND INDUSTRIAL RATES
The only change is in the higher base charge for depreciation. The 101 accounts in this category will only experience a
$3 increase per quarter.
SANITARY SEWER RATES
The largest expense item in the sewer department is for sewage treatment. These charges are imposed by and paid to
MCES. For 2020, MCES charges will amount to $630,280, an increase of $71,749 or 12.79%. When combined with
depreciation and funds for lift -station rebuilds, staff is recommending an increase in the SAC portion of the rate
schedule. The amount charged for flow (metered water use) will remain the same. Also, residential sewer charges will
continue to be based on water used in the winter quarter (January, February, and March).
For residential customers, the amount per SAC unit will increase from $60 per quarter to $61. All other customers will
also see an increase of $1 per SAC unit per quarter.
2020 Water and Sewer Rates Memo
DIRECTION TO STAFF
The attached resolution adopts the pro forma assembled by the Finance Department and approves the recommended
rate schedules. It also directs the Finance Department to develop a pro forma financial guide and service rates on an
annual basis going forward.
Upon approval, a notice of the new rates will be provided to all municipal utility customers.
Film IFTTII:IMI1:1010
Resolution Adopting the Pro Forma and Rate Schedule
2020 Water and Sewer Rate Schedule (year to year comparison)
Water and Sewer Pro Forma for 2020
RESOLUTION 2019 -
RESOLUTION ADOPTING A PRO FORMA FINANCIAL GUIDE FOR WATER
AND SANITARY SEWER OPERATIONS FOR THE 2020 FISCAL YEAR AND
ESTABLISHING SERVICE RATES
WHEREAS, the Finance Department has developed a pro forma financial guide for
water and sanitary sewer operations for the 2020 fiscal year; and
WHEREAS, it is necessary to provide adequate revenue for water and sanitary sewer
operations as contained in the pro forma financial guide; and
WHEREAS, the water and sanitary sewer service rates recommended herein reflect
the true and actual expenses incurred by the city for the services being provided.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hugo, Minnesota, as follows:
1. The pro forma financial guide for water and sanitary sewer operations for the
2020 fiscal year, attached hereto and made a part of this resolution, is hereby
approved.
2. The water and sanitary sewer service rates for the 2020 fiscal year, attached
hereto and made a part of this resolution, are hereby approved and shall remain in
effect until altered by resolution of the City Council or until otherwise altered by
law.
3. The Finance Department is hereby directed to provide notice to all municipal
utility customers advising them of the water and sanitary sewer service rates
approved herein.
4. The Finance Department is hereby directed to develop a pro forma financial guide
and recommended service rates on an annual basis going forward.
Upon roll call, the following Members voting AYE:
Upon roll call, the following Members voting NAY:
Whereupon said resolution was declared passed and adopted this 4 h day of November,
2019.
Tom Weidt, Mayor
ATTEST:
Michele Lindau, City Clerk
CITY OF HUGO, MINNESOTA
WATER SERVICE RATES
1. Municipal water service rates for residential customers shall be as follows: The
quarterly charge shall consist of a $34.00 depreciation charge plus: Usage up to
11,000 gallons per quarter shall be billed at $1.00 per thousand gallons or part
thereof. Usage over 11,000 gallons up to 20,000 gallons per calendar quarter
shall be billed at $2.00 per thousand gallons or part thereof. Usage over 20,000
up to 29,000 gallons per calendar quarter shall be billed at $3.00 per thousand
gallons or part thereof. Usage over 29,000 gallons per calendar quarter shall be
billed at $4.88 per thousand gallons or part thereof.
2. Municipal water service rates for multi -family residential customers shall be as
follows: The quarterly charge shall consist of a $34.00 depreciation charge plus:
All usage for a calendar quarter shall be billed at $2.00 per thousand gallons or
part thereof.
3. Municipal water service rates for churches, educational, institutional, commercial
and industrial customers shall be as follows: The quarterly charge shall consist of
a $34.00 depreciation charge plus: Usage up to 5,000 gallons per quarter shall be
billed at $1.00 per thousand gallons or part thereof. Usage over 5,000 gallons per
calendar quarter shall be billed at $1.65 per thousand gallons or part thereof.
4. Municipal water service rates for irrigation meters shall be set at $4.88 per
thousand gallons or part thereof.
SANITARY SEWER SERVICE RATES
1. Sanitary sewer service rates for residential customers, including multi -family
buildings, who are connected to the city water system, and having the city water
usage metered, shall be charged the sum of $61.00 multiplied by the number of
Sewer Availability Charges (SAC) plus 100% of the water usage at $1.85 per
thousand gallons over 9,000 gallons or part thereof per calendar quarter. The
number of gallons charged for residential sewer service shall be the same for all
quarters and shall be determined by the amount of water used during the winter
quarter (January, February and March).
2. Sanitary sewer service rates for churches, educational, institutional, commercial
and industrial customers shall be charged the sum of $19.00 multiplied by the
number of Sewer Availability Charges (SAC) plus 100% of the water usage at
$1.85 per thousand gallons over 3,000 gallons or part thereof per calendar quarter.
3. Sanitary sewer users not connected to the city water system shall be charged the
sum of $61.00 multiplied by the number of Sewer Availability Charges (SAC),
the amount so established to be charged quarterly.
Rates effective January 1, 2020
City of Hugo Utility Rates Effective January 1, 2020
2019 Rates 2020 Rates
2019 Single -Family Residential Water
2020 Single -Family Residential Water
Gallons/Qtr.
Rate
Gallons/Qtr.
Rate
_
Base Rate:
S31.00 per quarte-
Base Rate:
S34.00 per quarter
Volume Rate:
Volume Rate:
1- 11,000
$1.00 per thousand
1-11,000
$1.00 per thousand
11,001- 20,000
$2.00 per thousand
11,001- 20,000
$2.00 per thousand
20,001- 29,000
$3.00 per thousand
20,001- 29,000
$3.00 per thousand
29,000+
$4.88 per thousand
29,000+
$4.88 per thousand
2019 Multi -Family Residential Water
2020 Multi -Family Residential Water
Gallons/Qtr.
Rate
Gallons/Qtr.
Rate
Base Rate: $31.00 per quarter
Volume Rate:
All Gallons $2.00 per thousand
2019 Commercial, Industrial and Institutional Water
Gallons/Qtr. Rate
Base Rate: 531.00 per quarte
Volume Rate:
Volume Rate:
1- 5,000 $1.00 per thousand
5,001+ $1.65 per thousand
Base Rate: $34.00 per quarter
Volume Rate:
All Gallons $2.00 per thousand
0020 Commercial, Industrial and Institutional Water
Gallons/Qtr. Rate
Base Rate: 34.00 per quarter
Volume Rate:
1- 5,000 $1.00 per thousand
5,001+ $1.65 per thousand
2019 Irrigation (Metered Separately) 2020 Irrigation (Metered Separately)
Gallons/Qtr. Rate Gallons/Qtr. Rate
All Gallons $4.88 per thousand
2019 Residential Sewer
Gallons/Qtr. Rate
Charge for Each SAC Unit $60.00 per quarter
Single Family =1 SAC Unit
Multi -Family =1 SAC Unit per Dwelling
Volume Rate:
Volume Rate:
All Gallons $4.88 per thousand
2020 Residential Sewer
Gallons/Qtr. Rate
Charge for Each SAC Unit $61.00 per quarter
Single Family =1 SAC Unit
Multi -Family =1 SAC Unit per Dwelling
Volume Rate:
1- 9,000 No Charge 1- 9,000 No Charge
9,001+ $1.85 per thousand 9,001+ $1.85 per thousand
The number of gallons charged for residential sewer service shall be the same for all quarters and shall be determined
by the amount of water used during the winter quarter (January, February and March)
2019 Commercial, Industrial and Institutional Sewer
Gallons/Qtr. Rate
Charge for Each SAC Unit $18.00 per quarter
SAC Units Vary by Building
Volume Rate:
1- 3,000 No Charge
3,000+ $1.85 per thousand
2019 rates were used to calculate the bill you received in
January, 2020 (for the October, November and December Quarter)
2 220 Commercial, Industrial and Institutional Sewer
Gallons/Qtr. Rate
Charge for Each SAC Unit $19.00 per quarter
SAC Units Vary by Building
Volume Rate:
1- 3,000 No Charge
3,000+ $1.85 per thousand
2020 rates will first apply to the bill you receive in
April, 2020 (for the January, February and March Quarter)
2020 Water and Sewer Business Pro -Forma
ACCOUNT
DESCRIPTION
WATER REVENUES:
Water Billings:
• Residential
Multi Family
2019 1
Adopted L
Budget
$ 848,484.00
$ 124,980.00
2019
J
1 2020
Proposed
Budget
Notes
Projected
Projected
$ 747,541.42
$ 790,379.16
$ 127,D00.12
$ 219,457.90
$ (24,575.68)
$ 28,596.69
$ 13,906.13
$ 2,527.95
j_ $ 1,157,292.2L
1 $
Base Fees = $ 491,520 (depreciation = $497,248)
Usage Fees = $ 665,772
Total Fees = $1,157,292
I Small adjustments to accounts receivable
$ 124,756.46
Irrigation
j $ 280,753.00
$ 219,457.90
- Less City Irrigation Accounts
$ (31,295.00)7
$ (24,575.68)
- Commercial
$ 28,457.00
$ 27,570.26
-Industrial
$ 13,138.00
$ 13,594.13
- Educational
$ 2,656.00
$ 2,503.95
Water Billings (Revenue Requirement)
$ 1,267,173.00
$ 1,110,848.44
Account Adjustments
$ -
$ (194.69)
Hydrant Water Sales
$ 600.00
$ 1,836.00
$ 1,800.00
Truck loads of unmetered hydrant water
Water Penalties
$ 15,598.00
$ 25,000.00
$ 1,308,371.00 i
_ $ 14,593.00
$ 25,252.40
. $ 1,152,335.15
$ 15,045.00 1
$ 16,000.00
$ 1,190,137.26
Budget
Approximately 1.3%of water billings
$320 x 50 new homes (net of sales tax)
Water Meters
TOTAL WATER REVENUES
WATER EXPENSES:
Operation & Maintenance
Wages:
Budget
Projected_
_
Public Works Director - Anderson
$ 38,290.00
$ 38,290.00
$ 39,439.00
'33% of Pay Grade 10 Maximum
Compensated Absences -Anderson
Maintenance Worker - Smith
Compensated Absences - Smith
Maintenance Worker - Pettee
Compensated Absences - Pettee
In Lieu of Health Insurance
Standby Pay
Overtime (104 hours at overtime rate) - Smith
Overtime (104 hours at overtime rate) - Pettee
Fringe Benefits:
$ 1,000.00
$ 31,873.00 .
$ 1,000.00 !
$ 26,717.00
$ 1,000.00
$ 2,880.00
$ 8,060.00
$ 4,781.00
$ 4,008.00
$ 119,609.00 _
$ 1,000.00
$ 31,873.00
$ 1,000.00
$ 26,717.00
$ 1,000.00
$ 2,880.00
$ 8,060.00
$ 4,781.00
$ 4,008.00
$ 119,609.00
.
_
$ 1,000.00
$ 32,829.00
$ 1,000.00
$ 28,757.00
$ _ 1,000.00
$ 2,880.00
$ 8,320.00
$ 4,924.OD
$ 4,314.00
$ 124,463.00 _
1 133%of increase in PTO Bank
50%of Pay Grade 5 Maximum
50%of increase in PTO Bank
50%of Pay Grade 5 Step 3
50%of increase in PTO Bank
. $240/month for waived coverage
50%of $320/week
104 hours (10%) @overtime rate
104 hours (10%) @ overtime rate
Pera- Anderson
$ 2,872.00
$
2,872.00:
$ 2,958.00
17.5%of Salary
Pera - Smith
$ 2,749.00.1
$
2,749.00
:
$ 2,831.00
$ 2,480.00
$ 624.00
7.5%of Salary & Overtime
Pere - Pettee
$ 2,304.00
$ 2,304.00
7.5%of Salary & Overtime
7.5%of Standby Pay
Para - Standby Pay
$ 605.00
$ 605.00
Fica- Anderson
$ 2,374.00
$
2,374.00
_
$ 2,445.00
6.2%of5alary
_
Fica - Smith
$ 2,273.00 .
$
2,273.00
2,341.00 .
6.2%of Salary & Overtime
Fica - Pettee
$ 1,905.00
$ 500.00
$ 555.00
$
$
$
1,905.00
500.00
555.00
i
_$
$ 2,050.00
$ 516.00
1 $ 572.00
6_.2%of Salary & Overtime
6.2%of Standby Pay
1.45%of Salary
1.45%of Salary & Overtime
1.45%of Salary&Overtime _
1.45%of Standby Pay
Fica - Standby Pay
Medicare -Anderson
Medicare - Smith
$ 531.00
$ 531.00 $ 547.00
Medicare -Pettee
Medicare -Standby Pay
Health Insurance -Anderson
Health Insurance- Pettee
Dental Insurance -Anderson
Dental Insurance -Smith
Dental Insurance -Pettee
Worker's Compensation - Anderson
Worker's Compensation -Smith
Worker's Compensation -Pettee
Worker's Compensation - Standby Pay
Supplies:
Cleaning Supplies
$ 446.00
$ 117.00
$ 8,480.00
$ 5,077.00
$ 470.00
$ 705.00
$ 267.00
$ 3,703.00
$ 3,544.00
$ 2,971.00
$ -
$ 42,448.00
_
$ 1,940.00
$ 446.00
$ 117.00
$ 8,347.00
$ 4,717.00
$ 470.00
$ 705.00
$ 267.00
$ 2,481.00
$ 2,241.00
$ 2,248.00
$ -
$ 38,707.00
$ 2,200.00
_
$ 480.00
$ 121.OD
$ 9,198.00
$ 5,077.00
$ 470.00
$ 705.00
$ 267.00
_ $ 3,814.00
$ 3,651.00
$ 3,198.00
$ -
$ 44,345.00
$ 2,460.00
33%of Health Partners High -Deductible Plan
50%of Health Partners High -Deductible Plan
33%of Delta Dental Plan
50% of Delta Dental Plan
50% of Delta Dental Plan
$39,439/100-$9.67
$37,753/100•$9.67
$33,071/100'$9.67
Exempt from work comp
1 Catchall accountfor rags, firstaid supplies....
Chemicals
$ 40,000.00
$ 30,000.00
$ 30,000.00
$ 99.00
$ 3,200.00
$ 50,000.00
$ 1,200.01
$ 16,250.00
$ 50,000.00
$ 113,209.00
$ 35,O00.00
$ 24,000.00
$ 20,000.00
$ 6,400.00
$ -
$ 3,000.00
$ 1,000.00 }]Performed
Added at 5 wells (chlorine, fluouride...)
This is an absolutely ridiculous fee
Water Department's shareof bulkfuel purchases
Shop tools, shelving, cold -weather gear...
$100/month
Purchase and sell 350 at discount to home owners
1,175 existing meters to convert to radio reads
Lubricants, shop supplies, vehicle maim
3 watermain breaks @ $8,000
Contingency budget if well pump fails
Non-specific building repairs
Hoping this won't happen again]
$250/month
Public works site and water towers
- Hazardous Waste Generators License
$ 120.00
$ 99.00
Motor Fuels
$ 2,656.00
$ 2,565.00
Small Tools & Equipment
$ 50,000.00
$ 10,000.00
Uniforms $ 2,040.00
Smart Controllers (far irrigation systems) $ 10,000.00
Water Meters $ 100,000.00
$ 166,756.00
Repairs & Maintenance:
Repairs & Maintenance $ 30,000.00
- Watermain Breaks $ 32,000.00
Well Pump Repairs $ 25,000.00
Building Repair & Maintenance $ 5,000.00
$ 1,140.00
$ -
$ 65,000.00
.....$
$ 111,004.00
35,000.00
$ 24,000.00
$ 20,000.00
$ 6,400.00
Vandalism Repairs - Well No. 3 (net of insurance)
-Septic System Pumping _
Weed Control
HVAC Repairs
_
$
$ (1,955.00)
f $ 3,000.OD
$ 867.00
$ 4,400.00
$ _ 3,000.00
$ 850.00
$ 4,400.00
'
$ 4,400.00
by NAC Mechanical
$$ 300,250.00
$ 91,712.00
$ 93,800.00
Page 1
2020 Water and Sewer Business Pro -Forma
ACCOUNT
DESCRIPTION
Professional Services:
Water Bacteria Testing
Random Personnel Testing
Building Cleaning Services (contract)
Scada System Troubleshooting
Safety Training
Engineering - Non-specific engineering fees
Engineering- Implement Well Head Prot. Plan
2019 2019 2020_
Adopted 1 Projected Proposed
J$
- I
!$ 100.00j
$
$ 2,100.00 r
$ _
2,004.00
. $
$
650.00
$
650.00
$
_ $
1,515.00
$
1,544.00
$
$
5,765.00
$
5,798.00
. $
$
12,500.00
$_
1,669.00
$
$
5,000.00
_
$
7,820.00 $
$
17,500.00
$
9,489.00 $
_
�.
Electricity:
I
Xcel - Public Works Facility
$
4,220.00
$ 4,055.00
Xcel - Well No. 2 & Tower No. 2
$
4,485.00
$ 5,360.00
- Xcel - Well No. 3
Xcel - Tower No. 3
$
7,520.00
$ 6,586.00
__
$ 3,280.D0
$ 3,353.00
Xcel - Well No. 4
$
6,280.00
$ 7,840.00
Xcel - Well No. 5
$
6,095.00
$ 4,353.00
- Xcel - Well No. 6
$
4,046.00
$ 4,413.00
BHE - Well No. 2 (solar garden contract)
$
_
7,630.00
$ 6,608.00
- BHE - Well No. 3 (solar garden contract)
$
14,495.00
$ 12,529.OD
BHE - Well No. 4 (solar garden contract)
BHE - Well No. 5 (solar garden contract)
BHE - Well No. 6 (solar garden contract)
Gas for Public Works Facility
Refuse Disposal
Communications: `
Cellular Phone Charges
$
$
$
$
$
$
$
$
17,445.00 $ _ 14,693.00
13,255.00 $ 11,937.00
11,205.00 $ 9,845.00
99,856.00 $ 91,572.00
2,823.00 $ 3,033.00
4,220.00 $ 3,680.00
106,899.00 1 $ 98,285.0D
3,600.00 $ 2,142.00
Business Internet- Comcast (upgraded speed)
$
2,100.00
$ 1,950.00
$ 360.00
Line 651653-1154 583 Scada-360.00
Notes
500.00 $125/month _
100.00 I New personnel policy provision
100.00 $175/month
650.00 1 Contingency budget
$ 4,260.00
15% Increase above projected
$ 5,630.00
5% Increase above projected
$ 6,915.00
5% Increase above projected
$ 3,520.00
15% Increase above projected
5% Increase above projected_
$ 8,235.00
$ 4,570.00
15% Increase above projected
$ 4,635.00
5% Increase above projected
$ 6,940.00
5% Increase above projected
$ 13,155.00
5% Increase above projected
$ 15,430.00
5% Increase above projected
$ 12,535.00 5% Increase above projected
$ 10,340.00 5% Increase above projected
$ 96,165.00 _
$ 3,185.00 5% Increase above projected
$ 4,200.00 1 Gene's Disposal
$ 103,550.00
360.00
100mb service (up from 20mb
$ 6,060.00
$ 4,452.00
$ 4,620.00
Travel & Training:
Training Classes
$ 1,650.00
$ 2,200.00
$ 2,200.00
Water school, exams, and certificate renewals
$ 1,650.00
$ 2,200.00
$ 2,200.00
Professional Memberships:
Dues
$ 85.00
$ 85.00 1
$ 85.00
American Public Works Assn
Dues
$
$ 137.00
$ 150.00
Minnesota Rural Water Assn
Dues
$ -
$ 315.00
$ 315.00.
�American Waterworks Assn
$ 85.00_
$ 537.00
$ 550.00
Administration
_
_.
_ .
CityAdministrator
] $ 40,889.00
$ 40,889.00
43,372.0
$ 32,829.00
el4Step4
50%of Pay Grade 5 Maximum
Billing Clerk
$ 30,489.00
$ 30,489.00
Compensated Absences _
$ 1,000.00
$ 1,000.00
$ 1,000.00 _
50% of increase in PTO Bank
$ 10,874.00
$ 10,874.00
Administrative Assistant
$ 11,704.00
25%of Pay Grade 4 Minimum Step 1
$ 1,000.00
$ 500.00
Compensated Absences -
$ 500.00
25% ofincrease PTO Bank
$ 84,252.00
$ 83,752.00
$ 89,405.00:
_in
Fringe Benefits:
$ 3,253.00
7.5%of Salary
Para - City Administrator $ 3,067.00 $ 3,067.00
Pera - Billing Clerk
$ 2,287.00
$ 2,287.00
(
$ 2,462.00
7.5%of Salary
Pera- AdministrativeAssistant
$ 816.00
$ 816.00
-
$ 878.00
_
7.5%of Salary
Fica-CityAdministrator
$ 2,050.00
$ 2,050.00
$ 2,689.00
6.2%of Salary
Fica - Billing Clerk _
l $ 1,890.00
$ 1,890.00
$ 2,035.00
6.2%of Salary
Fica-Administrative Assistant
$ 674.00
$ 674.00
$ 726.00
6.2%of Salary
Medicare-CityAdministrator
$ 593.00
$ 593.00
$ 629.00
1.45% of Salary
Medicare - Billing Clerk
$ 442.00
$ 442.D0
$ 476.00
1.45%of Salary
Medicare -Administrative Assistant
$ 158.00
$ 158.00
$ 170.00
1.45%of Salary
iealth Insurance- Billing Clerk
$ 11,802.00
$ 11,655.00
$ 13,113.00
50%of HealthPartners High -Deductible Plan
Health Insurance -Administrative Assistant
$ 1,356.00
$ 1,334.00
$ 1,459.00
25%of Health Partners High -Deductible Plan
Dental Insurance - Billing Clerk _
Dental Insurance -Administrative Assistant
$ 517.00
1 $ 134.60
t
$ 517.00
$ 134.00
$ 517.00
$ 134.00 -
$ 236.00
$ 84.00
$ 28,861.00
$ 4,000.00
$ 1,000.00
$ 150.00
$ 1,000.00
6,0.00
$15
50% of Delta Dental Plan
25%of Delta Dental Plan
$32,829/100"$0.72
$11,704/100•$0.72
Utility bills and envelopes, standard supplie
Outsourced to Graphic Resources Inc
Needed to operate FundBalance Software
Electronic equipment replacement
Worker's Compensation - Billing Clerk
$ 220.00
$ 164.00 .
Worker's Compensation - Administrative Assistant
$ 78.00
$ 81.00
$ 26,084.00
$ 25,862.00
Supplies:
_
Office Supplies
$ 3,976.00
$ 3,976.00
Utility Bill Printing & Mailing (outsourced)
$ 975.00
$ 975.00
Pervasive Software Upgrade
$ 140.00
i}
$140.00
- Desktop Computer Systems
1_ $ 1,000 00
$ 1,000.00
$ 6,091.00
$ 750.00
_
$ 6,091.00
$ 750.00
Breakroom Supplies
_ _
$ 750.00
1 Includes supplies for Rice lake Centre
Page 2
2020 Water and Sewer Business Pro -Forma
ACCOUNT
DESCRIPTION
Water Brochures
Professional Services:
Audit
Accounting Services
Legal Fees - WBL Restoration Litigation
Legal Fees - Miscellaneous Issue
Contractual Maintenance:
Software Maintenance Agreements - Fund Balance
Software Maintenance Agreements - UB Scan
Software Maintenance Agreements - Scada
Software Maintenance Agreements - Sensus
Communications:
IT Support Services:
Computer Technical Support- Metro Inet
Replace WiFi Access Points (PW facility)
Telephone Support - City of Roseville
Insurance:
Liability
Property _
Automobile
Lease
Miscellaneous:
Water Appropriation Fees (DNR)
Gopher State Service Charges
Truck License Tabs
Assessment Collection Fees
Depreciation
Estimated Depreciation
Estimated Contributed Depreciation
TOTAL WATER EXPENSES
NET INCOME - WATER
Water Fund Share of PW Facility Bonds
SEWER REVENUES:
Sewer Billings
Residential
Multi Famili
Commercial
Industrial
- Educational
Penalties
SEWER REVENUES
SEWER EXPENSES:
Operation & Maintenance
Wages:
Public Works Director - Anderson
Compensated Absences - Anderson
Maintenance Worker - Smith
Compensated Absences - Smith
Maintenance Worker- Pettee
Compensated Absences - Pettee
In Lieu of Health Insurance
Standby Pay
Overtime (104 hours at overtime rate) - Smith
Overtime (104 hours at overtime rate) - Pettee
Fringe Benefits:
2019 2019 2020
Adopted Projected _ Proposed Notes
�,$
$ 50.00 : 34.00 $ 50.00 Department of Health requirement
$ 6,891.00 $ 6,875.00 $ 6,950.00
$ 7,100.00 $ 7,108.00 $ 7,300.00 Annual auditfees
$ 2,900.00 $ 2,867.00 $ 3,100.00 Implement GASB pronouncements
$ 6,000.00 $ 1,000.OD _} $ 11,000.00 WBL Restoration Litigation
$ 1,000.00 . $ 1,000.00 $ 1,000.00 . Miscellaneous Water Issues
$ 17,000.00
$ 11,975.00
_�
$ 12,400.00
$ 736.00
1
$ 737.00
$ 750.00
$ 150.00
Software upgrades & troubleshooting
Software upgrades & troubleshooting
$
$ 125.00
$ 125.00
$ 125.00
Water level alarm system -towers and wells
$ 125.00
$ 1,300.00
$ 1,150.00
$ 1,200.00
reading software upgrades
_Meter
$ 1,961.00 $ 2,137.00 $ 2,225.00
1
$ 3,7DO.00 $ 3,950.00 $ 4,100.00 Mail utility bills, rate schedules, watersamples...
$ 3,7DO.00 $ 3,950.00 $ 4,100.00
$ 3,950.00 $ 3,589.00 $ 3,950.00 IT services from City of Roseville
$ - $ 191.001 1 $ 200.00 Replace WiFi Access Points (PW facility)
$ 363.00 $ 357.00 $ 363.00 IT services from City of Roseville
$ 4,313.00
$ 4,137.00 $ 4,513.00
$ 16,527.00 l $ 18,000.00 Assumes no year-end dividends
$ 16,972.00
$ 12,357.00
$ 10,834.00
$ 12,357.00 Assumes no year-end dividends
$ 475.00 Assumes no year-end dividends
$ 30,832.00
$ 493.00 Ricoh USA copier
$ 150.00 Copies in excess of allowed amount
$ 643.00
$ 475.00
$ 207.00
$ 29,804.00
$ 27,568.00
$ 493.00
$ 493.00
$ 50.00
$ 143.00
$ 543.00 $ 636.00
$ 6,166.00 $ 5,257.00
$ 6,166.00 Water appropriation permit fees _
$ 1,535.00 $ 1,900.00
$ 1,950.00 Centralized locate reporting service (required)
$ - $ -
$ 100.00.1 Every two years
$ 8,216.00
$ 7,701.00 $ 7,157.00
$ 1,000.00 $ 818.00
$ 1,000.00 J
Charged by Washington County
$ 8,701.00 $ 7,975.00 $ 9,216.00
$ 242,314.00 $ 232,341.00 $ 317,780.00_ Depreciation on city installed assets
$ 179,468.00 $ 179,468.00 $ 179,468.00 Depreciation on developer installed assets
$ 421,782.00 $ 411,809.00 $ 497,248.001 1
$ 1,172,053.00 $ 1,068,469.00 $ 1,189,055.00.
$
136,318.00
$
83,866.15
$
1,082.
$
54,314.00
$
54,314.00
$
55,000.
$
82,004.00
$
29,552.15
$
(53,917.
$
908,399.00
$
928,452.13
1 $
950,638.
$
427,628.00
$
429,707.89
$
435,423.
$
41,484.00
$
40,755.29
$
42,033.
$
23,662.00 .
$
25,610.25
! j $
26,286.
bonds and new issue in 2020
__$
8,012.00 :
$
7,842.15 ;
1$
13,138.151
�Base Fees = $1,233,612
FlowFees = $ 228,907
$
1,409,185.00
$
1,432,367.71
$
1,462,519.32
Total Fees = $1,462,519
$
12,994.00
$
14,031.42
$
14,333.00
Approximately 0.98% of sewer billings
$
1,422,179.00
$
1,446,399.13
$
1,476,852.32
I_
$ 38,290.00
$ 38,290.00
$ 39,439.00
33% of Pay G rade 10 Maximum
$ 1,000.00
$ 1,000.00
$ 1,000.00 1
133%of increase in PTO Bank
$ 31,873.00
$ 31,873.00
$ 32,829.00
50%of Pay Grade 5 Maximum
$ 1,000.00
$ 26,717.00
$ 1,000.00
$ 2,880.00
$ 1,060.00
$ 1,0DD.00
$ 28,757.00
$ 1,000.00
$ 2,880.00
$ 8,320.00
$ 4,924.00
$ 4,314.00
50%of increase in PTO Bank
50%of Pay Grade 5 Step 3
5D%of increase in PTO Bank
$240/month for waived coverage
50% of $320/week
i 104 hours (10%) @ overtime rate
11D4 hours (10%) @ overtime rate
_
$ 26,717.00
$ 1,000.00
$ 2,880.00
$ 8,060.00
$ 8,060.00
$ 4,781.00
$ 4,781.00
$ 4,008.00
$ 119,609.00
$ 4,008.00
$ 119,609.00
$ 124,463.00
Page 3
2020 Water and Sewer Business Pro -Forma
ACCOUNT
DESCRIPTION
Pera -Anderson
Pera -Smith
Pera - Pettee
2019
Adopted
$ 2,872.00 i
2019
Projected L
$ 2,872.00 1^.
2020
-Proposed
$ 2,958.00
$ 2,831.00
$ 2,480.00
$ 624.00
$ 2,445.00
$ 2,341.00
$ 2,050.00
Notes
7.5%of Salary
7.5%%of Salary & Overtime
7.5%of Salary & Overtime _
7.5% of Standby Pay
6.2%of Salary
6.2%of Salary & Overtime
6.2% of Salary & Overtime
$ 2,749.00
$ 2,749.00
$ 2,304.00
] $ 605.00
$ 2,374.00
$ 2,273.00
$ 1,905.00
$ 2,304.001
Pera - Standby Pay
f $ 605.00
$ 2,374.00
$ 2,273.O0
I $ 1,905.00
Fica- Anderson
Fica - Smith
Fica - Pettee
Fica-Standby Pay
$ 500.00
$
500.00
$ 516,00.
L6.2%of Standby Pay
Medicare -Anderson
$ 555.00
$
$
555.00
531.00
$ 572.00
1.45%of Salary
Medicare - Smith
Medicare -Pettee
Medicare -Standby Pay
Health Insurance -Anderson
Health Insurance -Pettee
$ 531.00
$ 547.00
1.45%of Salary & Overtime
$ 446.00
$ 446.00
$ 480.00
1.4591of Salary & Overtime
1.45%of Standby Pay
33% of HealthPartners High -Deductible Plan
150%ofHealthPartnersHigh-Deductible Plan
$ 117.00
$ 117.O0
$ 121.00
$ 9,198.00
$ 5,077.00
$ 8,480.00
$ 8,347.O0
$ 4,717.00
$ 5,077.00
Dental Insurance -Anderson
$ 470.00
$
470.00
$ 470.00
33%of Delta Dental Plan
Dental Insurance -Smith
$ 705.00
$
705.00
$ 705.00
50%of Delta Dental Plan
Dental Insurance- Pettee
$ 267.00
$ 3,703.00
$
$
267.00
2,481.00
$ 267.00
50%of Delta Dental Plan
Worker's Compensation - Anderson
Worker's Compensation - Smith
$ 3,814.00
$39,439/100*$9.67
$ 3,544.00
$ 2,241.00
$ 3,651.00
$ 3,198.00
$
_$37,753/100*$9.67
$33,071/100*$9.67
Exemptfrom work comp
Worker's Compensation - Pettee
$ 2,971.00
$ 2,248.00
Worker's Compensation - StandbyPay
Supplies:
$ $
$ 42,448.00 $ 38,707.00
$ 44,345.00
Cleaning Supplies
$ 1,940.00
$ 2,656.00
$ 10,000.00
$ 2,040.00
$ 2,200.00
$ _ 2,565.00
$ 10,000.00
$ 1,140.00
li
j _
$ 2,460.00
$ 3,200.00
$ 10,000.00
$ 1,200.00
$ 16,860.00
$ 30,000.00
$ 22,000.00
$ 40,ODO.00
$ 5:000.00
$ 3,000.00
$ 300.00
$ 4,400.00
_ $ 104,700.00
$ 5,000.00
Catchall account for rags, first aid supplies....
Water Department's share of bulk fuel purchases
Shop tools, shelving, cold -weather gear...
$100/month _
_
Lubricants, shop supplies, vactor maint....
j Budget one pump replacement per year
. Budget for one rebuild per year
Non-specific building repairs
$250/month
Public works site and lift stations
Performed by NAC Mechanical Inc
Annual costs ofsoftware module
Motor Fuels
Small Tools & Equipment
Uniforms
Repairs & Maintenance:
$ 16,636.00 $ 15,905.00
_
$ 57,890.00 $ 25,000.00
Repairs & Maintenance
Submersible Pumps for Lift Stations
- Lift Station Rebuilds
$ 22,000.00
$
$ 40,000.00.E
$
Building Repair & Maintenance
$ 5,OOD.00 .
$ 3,000.00 I
$ 300.00
$ 4,400.00
$ 5,000.00
$ 3,OOO.00
Septic System Pumping
Weed Control
$ 236.00
$ 4,400.00
- HVAC Repairs _ _ _
Professional Services:
Data Collection & Maintenance Tracking (WSB)
Building Cleaning Services (contract)
$ 132,590.00 _
$ -
$ 37,636.00
$ 5,000.00
$ 2,100.00 I
$ 2,004.00
$ 2,100.00
$175/month
Random Personnel Testing
$ -
$ 100.00
$ 100.00
New personnel policy provision
Scada System Troubleshooting
$ 650.00
$ 1,515.00
$ 4,265.00
$ 650.00
$ 1,544.00
$ 9,298.00
$ 650.00
$ 1,575.00
Contingency budget
Safety Training
OSHA required safety training
_
$ 9,425.00
Sewage Treatment:
Increase of $71,749 or 12.79%
Metro Council Environmental Services
Utilities:
$ 558,801.00
$ 558,801.00
$ 630,280.00
$ 558,801.00
$ 558,801.00
$ 630,280.00
Electricity:
5% Increase above projected _
5% Increase above projected
-Lift Stations
$ 9,415.00 5,159.00
$ 5,236.00
PWFacility
$ 4,220.00
$ 13,635.00
$ 2,823.00
$ 4,220.00. I
_$
$ 4,055.00
$ 9,214.00
$ 3,033.00
$ 3,680.00
$ 4,260.00
_ $ 9,496.00
$ 3,185.00
$ 4,200.00
Gas for Public Works Facility
Refuse Disposal
Communications:
Cellular Phone Charges
Business Internet - Comcast (upgraded speed)
Line 651 653-1154 583 Scads
5% Increase above projected
Gene's Disposal _
$180/month ~
300mb service (up from tomb service)
$30/month
_
Sewer school, exams, and certificate renewals
American Public Works Assn
Minnesota Rural Water Assn _
$ 20,678.00
$ 15,927.00
$ 16,881.00
$ 2,142.00
$ 1,950.00
$ 360.00
$ 3,600.00
.$ 2,160.00
_ _$ 2,100.00
$ 360.00
$ 2,000.00
_
$ 360.00
$ 5,960.00
$ 4,452.00
$ 4,620.00
Travel & Training:
$ 4,300.00 _.
$ 4,300.00
I_
$ 85.00
$ -
$ 4,802.00
$ 4,802.00
1 $ 85.00
$ 138138 00
_
$ 5,000.00
$ 5,000.00
$ 85.00
Training Classes
_
Professional Memberships:
Dues
Dues
$ 150.00
Administration
Wages: - - -
$ 85.00
-
$ 40,889.00
$ 30,489.00
$ 1,000.00
$ 10,874.00
$ 1,000.00
$ 223.00
$ 40,889.00
$ 30,489.00
$ 1,000.00
$ 10,874.00
$ 1,000.00
$ 235.00
- -
$ 43,372.00
$ 32,829.00
$ 1,000.00
$_ 11,704.00
$ 1,000.00
City Administrator
25%of Pay Grade 14 Step 4
Billing Clerk
50%of Pay Grade 5 Maximum
Compensated Absences
I
5_0%of increase in PTO Bank
25%of Pay Grade 4 Minimum Step 1
25%of increase in PTO Bank
Administrative Assistant
Com: ensated Absences
Page 4
2020 Water and Sewer Business Pro -Forma
ACCOUNT
2019
2019
2020
DESCRIPTION
Adopted
T,
Projected I
Proposed
Notes
$ 84,252.00 _
$ 84,252.00
$
89,905.00
_
Fringe Benefits:
Pere-CityAdministrator
$ 3,067.00.1
$ 3,067.00
$
3,253.00
7.5%ofSalary
Para - Billing Clerk
$ 2,287.00
$ 2,287.00
$
2,462.00
_
7.5%of Salary
Para -Administrative Assistant
$ 816.00
$ 816.00
$
878.00
7.5%of Salary
Fica - CityAdministrator
$ 2,050.00
$ 2,050.00
$
2,689.00
6.2%of Salary
Fica - Billing Clerk
$ 1,890.00
$ 1,890.00
$
2,035.00
6.2%of Salary
Fica - Administrative Assistant
$ 674.00
$ 674.00
$
726.00
6.2%of Salary
Medicare-CityAdministrator
$ 593.00
$ 593.D0
$
629.00
1.45%ofSalary
Medicare - Billing Clerk j $
442.00
$ 442.00
$
476.00
_
1.45%of Salary
Medicare - Administrative Assistant
$ 158.00
$ 158.00
$
170.00
1.45%of Salary
Health Insurance - Billing Clerk
$ 11,802.00
$ 11,655.00
$
13,113.00
50%of Health Partners High -Deductible Plan
Health Insurance -Administrative Assistant
$ 1,356.00
$ 1,334.00
$
1,459.00
25%of Health Partners High -Deductible Plan
Dental Insurance- Billing Clerk
I $ 517.00
$ 517.00
$
517.00
50%of Delta Dental Plan
Dental Insurance-AdministrativeAssistant
$ 134.00
$ 134.00
$
134.00
25% of Delta Denta I Plan
Worker's Compensation - Billing Clerk
$ 220.00
$ 164.00
$
236.00
$32,829/100•$0.72
Worker'sCompensation- AdministrativeAssistant
$ 78.00
$ 81.00
$
84.00
$11,704/100*$0.72 4
_ $ 26,084.00
$ 25,862.00
$
28,861.00
Supplies:
_
_
Office Supplies
$ 3,976.00
$ 3.976.00
$
4,OOO.OD
Utility bills and envelopes, standard supplies
- Utility Bill Printing & Mailing (outsourced)
$ 975.00
$ 975.00 1
] $
1,000.00
Outsourced to Graphic Resources Inc
Pervasive Software Upgrade
$ 140.00
$ 140.00
$
150.00
Needed to operate FundBalance Software
Desktop Computer Systems
$ 1,000.00
$ 1,000.00
$
1,OOO.OD
Electronic equipment replacement
$ 6,091.00
$ 6,091.00
$
6,150.001
Breakroom Supplies
$ 750.00
$ 750.00
$
750.0D
_
Includes supplies for Rice Lake Centre
_$
6,841.00
$ 6,841.00
$
6,900.00
Professional Services:
Audit
$ 7,100.00
$ 7,108.00
$
7,300.00
Annual audit fees
Accounting Services
$ 2,900.00
$ 2,867.00
$
3,100.00
Implement GASB pronouncements
$ 10,000.00
$ 9,975.00
$
10,400.00
^_
IT Support Services:
Computer Technical Support - Metro Inet
$ 3,950.00
$ 3,589.00
$
3,950.00
IT services from City of Roseville
Replace WIN Access Points (PW Facility)
$
$ 191.00
$
200.00
Replace WiFi Access Points (PW facility)
Telephone Support - City of Roseville
$ 363.00
$ 357.00
$
363.00
IT services from City of Roseville
$ 4,313.00
$ 4,137.00
$
4,513.00_IT
Contractual Maintenance:
Software Maintenance Agreements- Fund Balance
$ 736.00
$ 737.00
$
750.00
Software upgrades & troubleshooting
Software Maintenance Agreements - UB Scan
$ 736.00
$ 125.00
$
150.OD
_
Software upgrades & troubleshooting
Software Maintenance Agreements -Scada
: $ 125.00
$ 125.00
$
125.00
Water level alarm system -towers and wells
Software Maintenance Agreements - Sensus
$ 1,100.00
_
$ 1,150.00
$
1,200.00
Meter reading software upgrades
$ 2,697.00
$ 2,137.00
$
2,225.001
Communications:
Postage
$ 3,700.00
$ 3,950.00
$
4,100.00
Mail utility bills, rate schedules, water samples...
$ 3,700.00
$ 3,950.00
$
4,100.00
_
Insurance:
Liability
$ 16,972.00
$ 16,527.00
$_
18,000.00
Assumes no year-end dividends
Property �_$
12,357.00
$ 5,253.00
$
5,821.00
Assumes no year-end dividends
Automobile
$ 475.00
$ 1,151.00
$
1,694.00
Assumes no year-end dividends
$ 29,804.00
$ 22,931.00
$
_
25,515.00 _
Rentals:
Copier Lease Payments
$ 493.00
$ 493.00
$
493.00
Ricoh USA copier
Copier Overage Charges
$ 50.00
$ 143.00
$
150.00
Copies in excess of allowed amount
_
$ 543.00
$ 636.00
$
643.00
_
Miscellaneous:
Gopher State Service Charges
$ 1,535.00
$ 1,800.00
$
1,850.00
Centralized locate reporting service (required)
Truck License Tabs
$ -
$
$
100.00
Every two years
Discharge Permit - Vactor Truck
$ 425.00
$ 425.00
$
425.00
Another ridiculous fee
_ f
$ 1,960.00 _
_ $ 2,225.00 _
_ $
2,375.00
Assessment Collection Fees
$ 1,000.00
$ 818.00
$
1,000.00 j
Charged by Washington County
$ 2,960.00
$ _ 3,043.00
$
3,375.00
Depreciation
Estimated Depreciation
$ 89,247.00 1
$ 89,247.00
$
89,247.00
Depreciation on city installed assets
_
Estimated Contributed Depreciation
$ 202,713.00
$ 202,713.00
$
202,713.00
Depreciation on developer installed assets
$ 291,960.00
$ 291,960.00
$
291,960.00 j
TOTAL SEWER EXPENSES
$ 1,368,526.00
$ 1,261,084.00
$
1,425,206.00
NET INCOME - SEWER
$ 53,653.00
$ 185,315.13
$
51,646.32
Sewer Fund Share of PW Facility Bonds
. $ 54,314.00
$ 54,314.00
$
55,000.01)
$ (661.00)
$ 131,001.13
$
(3,353.68)
WATER& SEWER NET INCOME
$ 189,971.00
. $ 269,181.28
$
52,728.58
Wellhead Protection Grant (State of Minnesota)
$ -
$ 9,056.00
$
One-timegrant
Returned Check Fees
$ 540.00
$ 540.00
$
540.00
18 fees @ $30
Special Assessments
S 825.00 I
S 825.00
S
825.00
S5 fee ner special assessment I1 Fr accountO
Page 5
2020 Water and Sewer Business Pro -Forma
ACCOUNT
2019
2019
2020
DESCRIPTION
Adopted
Projected
Proposed
Notes
L
Investment Earnings:
- Interest Income
$
50,000.00
$
152,648.00
$
50,000.00
Change in Value of Investments
$
-
$
-
$
-
Flucuates with changes in interest rates
Rents & Royalties:
T Mobile Base Rent
$
35,740.00
$
35,741.00
$
37,528.00
5%escaltorclause in lease agreement
- ConnexusEnergyAnnualTowerLease
$
3,510.00_
$
3,510.00
$
3,616.00
3% escaltor clause in lease agreement
Transfer to PW Facility Bond Sinking Fund _
$
(108,628.00)
$
(108,628.00)
$
(110,000.00)
_ Water & Sewer share of PW Facility Bonds
CHANGE IN RETAINED EARNINGS
$
171,958.00
$
362,873.28
$
35,237.58
Contributed Depreciation
$
382,181.00
$
382,181.00
$
382,181.00
_
TOTAL CHANGE IN RETAINED EARNINGS
$
554,139.00
$
i I
745,054.181
I
$
417,418.58
Page 6
Return To:
David K. Snyder, Esq.
JoHNsoN / TURNER LEGAL
56 East Broadway Avenue, Suite 206
Forest Lake, MN 55025
DRAFT NO.4
CITY OF HUGO
WASHINGTON COUNTY, MINNESOTA
OPTION AGREEMENT
THIS OPTION AGREEMENT ("Agreement") is made effective this , 2019,
("Effective Date") by and between The City of Hugo, a Minnesota Municipal Corporation (the
"City" of "The City" or "Seller"), and Cattle House, LLC, a Minnesota Limited Liability
Company. ('Buyer").
Recitals
WHEREAS, Seller is the owner of real property located in the County of Washington,
State of Minnesota and legally described on Exhibit A-1 attached hereto (the "Real Property" or
"the property"). The Seller has assembled this Real Property over many years with the desire
and intention that it be later offered for sale to a developer that will develop it carefully and in
accordance with the guidelines and direction of the City and to create a variety of uses which are
of direct, substantial and specific benefit to the City and its residents, including the provision of
necessary amenities;
WHEREAS, Buyer is desirous of securing an exclusive option for the overall purchase of
the property for the initial development of a restaurant upon part of it with subsequent phases to
include other land uses, subject to the review and discretion of the City; and
WHEREAS, the City is willing to convey to Buyer an option to acquire the Real
Property, in phases, to permit its sale and (approved) development in accordance with the City's
development requirements contingent upon satisfaction of terms and conditions. It is specifically
noted by the parties that although the financial consideration to be exchanged hereunder is
apparently nominal, it is of the utmost importance and consideration that the property be
developed in accordance with the City's guidelines and approval requirements and, thus, it is
mutually understood and agreed that the City's discretion to approve or disapprove any
development upon the property shall be unfettered and, for example, it shall not be limited to
approving uses for development upon the land that are otherwise permissible because they are
permitted or conditional uses under zoning provisions otherwise applicable to the Real Property
identified herein. Instead, the City may require different or more particularized uses within the
categories permitted by its zoning ordinance and that is one of the reasons why the financial
consideration to be paid is limited.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained (and including the foregoing clauses which are operative parts of this agreement) and
other good and valuable consideration in hand paid by the Buyer to the Seller as more fully set
forth below, the receipt and sufficiency of which is hereby acknowledged by the Seller, it is
hereby agreed as follows:
1. PropertyOptioned. The Seller hereby grants to the Buyer the exclusive right and
option ("Option") to be exercised on or before the end of the option term ("Option Term")
(defined below) to purchase the following property:
(A) All that real property consisting of approximately 4.5 acres located in the
County of Washington, and State of Minnesota, more particularly described in Exhibit
"A-1" attached hereto and hereby made a part hereof, together with all buildings and
improvements situated thereon, and all rights and benefits pertaining to the real property,
and together also with all hereditaments and appurtenances thereunto belonging or in any
way appertaining.
(B) The Real Property includes improvements which are conveyed AS IS. The
Seller may choose to (or not to) remove any buildings equipment and fixtures prior to the
Closing, provided if it does so that Seller completely remove the outbuildings or attached
equipment and fixtures and does not leave any improvements in a hazardous condition.
The Seller agrees to maintain the condition of the improvements, to the extent required
by law. The Seller will remove all debris and personal property from the Real Property
prior to Closing.
2. Option Payment and Term. The Seller hereby acknowledges the receipt of
payment of $1.00 in Option Payments which will permit an Option Term of (April 30, 2020)-
Phase 1, and (April 30, 2020)-Phase 2, (April 30, 2021) unless earlier terminated as set forth
herein.
3. Develo ers Agreement. The obligations of the Buyer under this Agreement are
contingent upon the Seller and Buyer entering into a Development Agreement relating to the
Property according to terms agreeable to Buyer and Seller on or before the Option Expiration
2
Date listed in paragraph 5 below as well as the other requirements herein. Buyer's exercise of the
Option is contingent upon the Buyer satisfying all express and implied conditions hereunder.
4. Exercise of Option/ClosiM Date. Buyer shall exercise the Option during the
Option Term and before the Option Expiration Date by providing written notice to Seller of the
exercise of the Option. The notice of exercise of Option shall be made by buyer by delivering
written notice to the Seller at its address below. The written notice of exercise of Option shall
constitute exercise of the Option on the Real Property. Thereafter, subject to submission of
development plans, City review and (receipt of necessary) approvals the purchase and closing of
the Real Property by Buyer from Seller shall occur no more than ten (10) days after the a
building permit is issued for the Real Property and the City of Hugo has approved land use
applications and a development agreement, all documents are recorded, issued a building permit,
and issued a notice to proceed. In the alternative, if the City of Hugo has not approved land use
applications, then the option shall expire upon 10 days of the date of issuance of its findings.
a. Incremental Exercise of Option: It is expressly understood and agreed that the
exercise of the option shall be in phases (Phases land 2) as set forth herein unless waived by the
City in writing. Specifically, the following deadlines for exercise and performance must be met:
(1.) Phase 1-shall consist of not less than 1 acre and not more than 2 acres of the Real
Property. The option must be fully and properly exercised not later than April 30, 2020 (Option
Expiration Date). In addition, all approvals shall be sought and, if issued at all, issued not later
than April 30, 2020. Construction of public and private improvements shall be substantially
complete as determined by the City not later than December 31, 2020.
(2.) Phase 2-shall consist of the remaining acreage of the Real Property. The option
must be fully and properly exercised not later than April 30, 2021 (Option Expiration Date). In
addition, all approvals shall be sought and, if issued at all, issued not later than April 30, 2021.
Construction of public and private improvements shall be substantially complete as determined
by the City not later than December 30, 2021.
5. Additional ARproval Criteria: Additional criteria for approval of any option
phase herein shall include, but not be limited to:
a. Whether the architectural quality, building plans, site plan, and proposed use of
the Property meets the Downtown Design Guidelines or the development criteria as determined
by the City Council outlined below:
b. A full service restaurant or some form of event center or family entertainment
venue is desired, situated so that the customers and public will benefit from views over the lake
according to plans approved by the city council. Secondary retail, service and housing uses may
be considered.
C. A development and phasing plan is required and agreed to in writing with all
development complete within 3 years.
3
d. Quality architecture, building materials, and site design, exceeding requirements
of the Downtown Design Guidelines are utilized in form approved by the city council in its sole
discretion.
C. Construction of public amenities, including pedestrian connections, a gathering
place near Egg Lake, and public parking on terms acceptable to the city council in its sole
discretion.
f. Buyer shall have obtained approval from the Minnesota Department of
Transportation for an additional access to the Real Property from Highway 61 at the north end of
the Real Property on or before the Closing Date. Alternatively, the buyer could propose to use
the existing access from Highway 61.
6. Additional Approvals Required: This agreement is expressly conditioned upon the
Buyer receiving land use application and follow-up Development Agreement approval by the
City Council as well as all development and connection fees per the City's fee schedule shall be
paid.
7. Time is Of the Essence: Time shall be of the essence as to all the required
conditions and undertakings herein. Failure to meet any deadline herein shall constitute a
default hereunder.
8. The "Contingency Date" shall be the date that the contingencies are met but not
later than 30-Days from the Option Expiration Date. If Buyer is not satisfied with its inspection
of the Property on or before the Contingency Date or if title is not found acceptable to Buyer, or
made acceptable, in accordance with the requirements and terms of Section 6 or in the event of
casualty or condemnation under the terms of Section 9, then the Earnest Money shall be returned
promptly to Buyer, and Buyer will execute and deliver to Seller a termination of this Agreement
in a form acceptable to Seller, and Seller and Buyer shall have no further liability or obligations
with respect to this Agreement. If Buyer gives Seller notice on or before the Contingency Date
that the contingencies described in this Section required to be satisfied by the Contingency Date
are either satisfied or waived by Buyer, then the parties will proceed to close the transaction
contemplated hereby and, except as specifically set forth herein, the Earnest Money will be non-
refundable to Buyer but applicable to the Purchase Price is exercised, the Purchase Price for the
Real Property is: One Dollar ($1.00).
9. Possession of Property
Seller has a right to possess and occupy the property until a closing on it is held.
10. Place of Closin . The place of closing shall be at Land Title, Inc. 4661 U.S. Hwy
61 N. #104 White Bear Lake, MN 55110.
11. Title and Survey. In lieu of all other evidence of title, the Seller will provide the
Buyer with a commitment for title insurance for the Real Property, committing to insure the
Buyer on Closing as the owner of the Real Property in an amount equal to the Purchase Price for
the Real Property, free of all liens, encumbrances and adverse claims except only the Permitted
Encumbrances. The Permitted Encumbrances shall only be those encumbrances listed on the
4
attached Exhibit "C". Seller agrees that it will, throughout the term of the Option, keep the Real
Property free from any liens, encumbrances and adverse claims and agrees not to enter into any
leases for the Real Property, except for leases which may be terminated on thirty (30) days'
written notice. In the event there are any liens, encumbrances or adverse claims, other than the
Permitted Encumbrances, Seller agrees to promptly remove the same and authorizes the Buyer to
deduct from the Purchase Price such sums as are necessary to remove any liens, encumbrances or
adverse claims, other than the Permitted Encumbrances. In the event Seller is unable to convey
marketable title to the Real Property, subject only to the Permitted Encumbrances, Seller shall be
considered in default under this Agreement and Buyer may, at Buyer's option, terminate this
Agreement and, upon such termination, the Initial Option Payment and all subsequent Option
Payments paid by Buyer to Seller shall be promptly refunded to Buyer.
The Seller shall pay for the cost of the title commitment and any cost necessary to update
the commitment within thirty (30) days from the date of the Closing. Buyer shall have ten (10)
days from the receipt of the updated commitment to make any additional objections with respect
to any new liens, encumbrances or other matters reflected on the updated title commitment. The
Buyer shall be responsible for the cost of the premium for the owner's and lender's title policy.
Seller has, at its expense, provided Buyer with an ALTA survey of the Real Property.
12. Real Estate Taxes and Assessments. Seller shall be responsible for payment of
the real estate taxes due and payable through the date of closing. Real estate taxes due and
payable in the years prior to the Closing on the Real Property shall be paid by the Seller on or
before the Closing. Seller shall also pay at Closing all deferred real estate taxes or assessments,
including so-called "Green Acres" taxes and assessments resulting from or due to the sale of the
Real Property, if any. Seller makes no representations or predictions concerning the amount of
real estate taxes or special assessments that may be levied against the Real Property or the
classification of the Real Property. Special assessments, if any, shall be prorated to the Effective
Date of this Agreement, with Seller paying all special assessments levied prior to the Effective
Date of this Restated Agreement and Buyer paying all special assessments levied after the
Effective Date of this Agreement.
13. Closing Documents. Subject to performance by the Buyer and the Seller of their
respective obligations hereunder, the Buyer and the Seller agree to fully execute, as necessary,
and deliver at the Closing the following:
(A) Warranty Deed conveying marketable title to Buyer to the conveyed land,
free and clear of all liens and encumbrances except the Permitted Encumbrances.
(B) Buyer shall pay the mortgage registry tax due on any mortgage placed on
the Real Property by the Buyer.
(C) An affidavit by Seller indicating that on the date of Closing there are no
outstanding unsatisfied judgments, tax liens, or bankruptcies against or involving the
Seller and that there are no leases, maintenance agreements or other agreements in force
as to the Real Property, and that the Seller knows of no unrecorded interests in the Real
Property of any kind, together with whatever standard owner's affidavit may be required
by the Buyer.
5
(D) Buyer shall pay the premium for the title insurance policy referred to
herein.
(E) Buyer shall pay the state deed tax and all taxes and assessments to be paid
by the Buyer pursuant to this Agreement.
(F) A marked -up title insurance commitment, subject only to the Permitted
Encumbrances described above.
(G) All other documents affecting title to or possession of the Real Property
and necessary to convey marketable title to the Real Property to Buyer, free and clear of
all liens, charges, and encumbrances, other than the Permitted Encumbrances.
(H) Seller shall execute and deliver at the Closing, a bring down certificate
certifying that the representations and warranties of the Seller contained herein shall be
true and correct as of the date of the Closing.
14. Access to the Premises. Buyer is hereby given access to the Real Property, with
reasonable notice, in order to conduct such soil, topographical, environmental, and engineering
exploration as Buyer reasonably deems appropriate. Buyer will work with Seller to prevent
damage to the property during said investigations. As additional consideration for the rights
granted in this the Buyer agrees to have the results of all such investigations certified to the
Seller and shall deliver copies to the Seller within 10 days of receipt by the Buyer. The Buyer
shall indemnify the Seller from any claims arising out of said investigations and shall prior to
entering the Real Property provide Seller with proof of insurance covering liability in the amount
of $1,000,000.00 and workers compensation insurance in form and amount satisfactory to the
Seller.
15. Brokerage Fees. Each party hereto warrants that it has not incurred any real estate
brokerage fees, finders' fee, loan brokerage fees, or any other fees to any third party as a result of
this transaction. In the event any third party institutes legal action in an effort to recover such
fees, the party who is alleged to have agreed to pay said fees shall defend such action and
indemnify and hold the other party to this Restated Agreement harmless from any and all claims
arising out of or relating thereto.
16. No Partnership or Joint Venture Created Hereby. Nothing in this Restated
Agreement shall be interpreted as crating a partnership or joint venture between the Buyer and
the Seller relative to the Real Property.
17. No Merger; Entire Agreement. The terms, covenants, and conditions to be
performed, or which may be performed, subsequent to the date of Closing, shall not merge with
any of the documents exchanged at Closing.
18. Liens: Buyer shall not permit any liens, including mechanics liens to attach to the
Real Property and shall furnish the City with a sworn construction statement and proof of
satisfaction of any contractor bill or lien upon written request. Buyer shall indemnify, hold
2
harmless and defend the City from all claims of contractors, including but not limited to
mechanics liens.
19. Remedies/Termination: If Buyer defaults under this Agreement, Seller shall have
the right to terminate this Agreement in accordance with the applicable Minnesota Statues. If
Buyer fails to cure such default within the statutory cure period, this Agreement will terminate,
and upon such termination Seller may retain the Earnest Money as liquidated damages, time
being of the essence of all provisions this Agreement. Notwithstanding the foregoing, Seller
shall have all rights a law or equity to correct, enjoin or remedy any breach hereof. The
provisions of this agreement shall survive any statutory cancellation to the full extent necessary
to protect Seller's interests. If Seller defaults under this Agreement, Buyer shall have the right to
return of its Earnest Money.
20. Representations and Warranties of Seller. Seller hereby represents and warrants
to Buyer, as follows:
(A) Hazardous Substances. That, to the best of their knowledge, no hazardous
substances, as that term is defined herein, are located in, under or upon the Real Property
and the Real Property has not been used for the generation, disposal, release,
transportation or production of any Hazardous Substances. The Real Property has been
used for farming purposes and farm chemicals, including fertilizers and pesticides, have
been used on the Real Property in accordance with the manufacturer's specifications.
The term "Hazardous Substances" shall mean all substances, wastes,
contaminants, pollutants and materials defined or designated as hazardous, extremely or
imminently hazardous, dangerous or toxic pursuant to (i) any applicable statute, code,
ordinance, rule, regulation, or policy of any local or state governmental authority within
the State of Minnesota; (ii) Sections 307 and 311 of the Clean Water Act, as amended, 33
U.S.C. ee 1317, 132; (iii) Section 1004 of the Resource Conservation and Recovery Act,
as amended, 42 U.S.C. 7412; (iv) Section 101 of the Comprehensive Environmental
Response and Liability Act, as amended, 42 U.S.C. 9601; (v) Section 112 of the Clean
Air Act, as amended, 42 U.S.C. 7412; (vi) Section 7 of the Toxic Substances Control Act,
as amended, 15 U.S.C. 2606; (vii) Sections 103 and 104 of the Hazardous Materials
Transportation Act, as amended, 49 U.S.C. 1802, 1803, or (viii) regulations promulgated
pursuant to any of the foregoing, and includes all substances, wastes, contaminants,
pollutants, and materials defined, . designated or identified as, or containing,
polychlorinated biphenyl's ("PCBs"), asbestos, or petroleum.
(B) Authori . The City has fee simple title to the Real Property. The City
has not entered into any other contract for the option, sale or other conveyance or transfer
of any right, title or interest in the Real Property. There are no unrecorded interests in the
Real Property and no tenants on the Real Property, other than as disclosed herein:
(C) No o Pending Proceedings. There is no litigation, arbitration or other legal
proceeding threatened or pending with respect to the Real Property. Seller has received
no notice that the Real Property is in non-compliance with any applicable governmental
law, ordinance, rule or regulation. Seller has received no notice of any proposed or
7
pending special assessments against the Real Property. Seller has received no notice of
any curtailed or any restricted access to the Real Property. Seller has received no notice
of any threatened or pending condemnation or eminent domain proceeding affecting the
Real Property.
(D) Operation of Real Propertx. During the Term of this Option, Seller shall
not grant any mortgage or otherwise permit any lien or encumbrance against the Real
Property. Seller shall not enter into any leases of the Real Property, except such lease as
may be terminated upon thirty (30) days' written notice.
(E) No Other Warranties. Other than those expressly stated in this Restated
Agreement, the Seller has made no other warranties or representations, and the Buyer has
not relied on any warranties or representations, express or implied, relative to the
condition of the Real Property or any other matter relative to this Restated Agreement
except as set forth in this Restated Agreement. The Buyer hereby acknowledges that it
has thoroughly inspected the Real Property and, other than the representations and
warranties set forth above, which representations and warranties shall survive the Closing
and delivery of the Warranty Deed, is purchasing the same in its "as is" condition as of
the date hereof.
21. Cumulative Rights. Except as may otherwise be provided elsewhere herein, no
right or remedy herein conferred on or reserved to the Buyer or the Seller is intended to be
exclusive of any other right or remedy provided herein or by law, but such rights and remedies
shall be cumulative in and in addition to every other right or remedy given herein or elsewhere or
hereafter existing at law, in equity, or by statute.
22. Consent. Whenever the Seller's consent shall be required herein including
applications to regulatory authorities for plats, permits, zoning or comprehensive plan
amendments, such approval or consent shall be subject to the sole and unqualified discretion of
the City.
23. Notices. Except as otherwise provided herein, all communications, demands,
notices, or objections permitted or required to be given or served under this Agreement shall be
in writing and shall be deemed to have been duly given or served if delivered in person or
deposited in the United States mail, postage prepaid, for mailing by registered or certified mail
addressed to a party to this Agreement to the address designated by a party to this Agreement in
the foregoing manner. Any party may change its address by giving notice, in writing, stating its
new address, to any other party as provided in the foregoing manner. Commencing on the tenth
(loth) day after the giving of such notice, such newly designated address shall be such party's
address for the purposes of all communications, demands, notices or objections permitted or
required to be given or served under this Restated Agreement. Notices shall be deemed given on
the date of delivery, if delivered, or on the date of deposit in the U.S. Mail, if mailed.
Notices may be delivered or mailed to the following addresses:
If to Seller:
City of Hugo
14669 Fitzgerald Avenue North
Hugo, MN 55038
With a copy to:
David K. Snyder
Johnson/Turner Legal
56 East Broadway Avenue, Suite 206
Forest Lake, MN 55025
If to Buyer:
Cattle House, LLC
With a copy to:
[contact/address]
24. Binding Effect. This Restated Agreement shall be binding on and shall inure to
the benefit of the parties hereto and to the assigns, executors, personal representatives, heirs, and
successors of the parties.
25. Destruction of the Real Property. In the event any structure on the Real Property
is destroyed or substantially damaged by fire or other cause before the date of Closing, Seller
agrees to clean up all debris and remove the remaining structure(s). If the damage allows
continued use of any structure, the Seller must secure the structure from any hazardous
conditions.
26. Condemnation. In the event any condemnation or eminent domain proceeding is
threatened or commenced against the Seller or the Real Property, Seller shall provide written
notice to Buyer within five (5) days from the date such proceeding is commenced or threatened.
Seller shall provide Buyer with all documentation received by Seller in connection with any such
proceeding. Notwithstanding anything else in this Agreement to the contrary, Buyer shall have
the right to terminate this Agreement by written notice to Seller within thirty (30) days from
Buyer's receipt of written notice from Seller, in which event the Initial Option Payment and all
subsequent Option Payments shall be promptly refunded to Buyer. Buyer shall also have the
right to exercise the Option for that portion of the Real Property which is subject to the
condemnation or eminent domain proceeding by providing Seller with written notice thereof
within thirty (30) days from Buyer's receipt of written notice from Seller. If Buyer does not
provide Seller with written notice within said thirty (30) days of its intent to either purchase the
Real Property which is subject to condemnation or terminate this Agreement, Buyer's right to do
so shall terminate and Seller may take such actions with respect to the condemnation as Seller
deems appropriate. The Option for the remainder of the Real Property which is not subject to the
condemnation shall continue in full force and effect.
W]
27. Amendment, Modification and Waiver. No amendment, modification, or waiver
of any condition, provision, or term shall be valid or of any effect unless made in writing, signed
by the party or parties to be bound or a duly authorized representative, and specifying with
particularity the extent and nature of such amendment, modification, or waiver. Any waiver by
any party of any default of another party shall not affect or impair any right arising from any
subsequent default.
28. Ca )tions. Headings or Titles. All captions, headings, or titles in the paragraphs or
section of this Restated Agreement are inserted for convenience of reference only and shall not
constitute a part of this Restated Agreement as a limitation of the scope of the particular
paragraphs or sections to which they apply.
29. Reference to Gender. Where appropriate, the feminine gender may be read as the
masculine gender or the neuter gender, the masculine gender may be read as the feminine gender
or the neuter gender, and the neuter gender may be read as the masculine gender or the feminine
gender.
30. Recording of Agreement. Buyer and Seller agree to execute and record a
memorandum of this Agreement, or to record this Agreement, in the office of the Washington
County Recorder or Registrar of Titles.
31. Minnesota Law. This Restated Agreement shall be construed and enforced in
accordance with the laws of the State of Minnesota. Any litigation shall be exclusively venued
in the Washington County District Court, Stillwater, Minnesota.
32. Breach Not Severable: A failure to comply with any condition herein including
failure to satisfy any condition required as to any foregoing listed phase shall preclude exercise
of any option to acquire or develop any subsequent phase.
33. Assignment. Neither party may assign its interest hereunder, provided, however,
that the City may assign its interests to its Economic Development Agency.
34. Entire Agreement. This Agreement constitutes the entire agreement by and
between the parties and incorporates all terms and conditions of the agreement between the
parties as they related to the Real Property. This Agreement supersedes all prior Agreements
between the parties.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and
effective the day and year first set forth above.
[SIGNATURES ON FOLLOWING PAGES]
10
STATE OF MINNESOTA
) ss.
COUNTY OF WASHINGTON)
SELLER:
CITY OF HUGO
By: Tom Weidt
Its: Mayor
The foregoing instrument was acknowledged before me this day of ,
2019, by Tom Weidt, the Mayor of the City of Hugo, a Minnesota municipal corporation, on behalf
of said City with full authority so to do.
OFFICIAL SEAL OF NOTARY PUBLIC
SIGNATURE OF NOTARY PUBLIC
11
By:
Its:
STATE OF MINNESOTA
) ss.
COUNTY OF WASHINGTON)
On this day of
County, personally appeared
sworn did say that he/she is the
company on behalf of the company.
OFFICIAL SEAL OF NOTARY PUBLIC
DRAFTED BT
David K. Snyder, Esq.
JoHNsoN / TURNER LEGAL
56 East Broadway Avenue, Suite 206
Forest Lake, MN 55025
(651) 464-7292
BUYER:
Cattle House, LLC
2019, before me, a Notary Public within and for said
_, to me personally known, who being by me duly
of Cattle House, LLC, a Minnesota limited liability
SIGNATURE OF NOTARY PUBLIC
12
Exhibit A-1
Legal Description
Exhibit B
Special Assessment Search
Exhibit C
Permitted Encumbrances
1. A restrictive covenant that Buyer shall have completed construction of an approved
development, public and private infrastructure and buildings pursuant to City approvals not later
than December 31, 2020 for Phase 1.
2. In the event that Buyer has not completed the improvement s by December 31, 2020, then the
City, at its option, may pay the Buyer the sum of $1.00 ("Repurchase Price").
3. Upon payment from the City to the Buyer of the Repurchase Price, the Buyer shall deliver to
City a Warranty Deed conveying the Real Property to the City free and clear of encumbrances.
4. A restrictive covenant that Buyer shall have completed construction of an approved
development, public and private infrastructure and buildings pursuant to City approvals not later
than December 31, 2021 for Phase 2.
5. In the event that Buyer has not completed the improvement s by December 31, 2021, then the
City, at its option, may pay the Buyer the sum of $1.00 ("Repurchase Price").
6. Upon payment from the City to the Buyer of the Repurchase Price, the Buyer shall deliver to
City a Warranty Deed conveying the Real Property to the City free and clear of encumbrances.
7.Upon final approval from the City of the completion of the improvements, City shall execute
and deliver to Buyer a waiver of these deed restrictions which may be recorded as evidence that
these restrictions are fully satisfied and of no further force and effect.
8. The Real Property and the rights and liabilities created under these deed restrictions may not
be assigned by Buyer without express written approval of City. Any assignment which is not so
approved before these restrictions are removed or without City approval shall be void and of no
effect.
9. Buyer agrees to pay all costs and disbursements including reasonable attorney's fees incurred
by the City in any litigation arising out of or relating to these deed restrictions.
10. Easements and encumbrances of record. Zoning approvals and regulations.
Agenda Item: I.2
CITY OF HUGO
MEMORANDUM
TO: Bryan Bear, City Administrator
FROM: Emily Weber, Community Development Assistant
SUBJECT: Rich Kettler — Proposed Property Donation
DATE: October 31, 2019, for the City Council meeting on November 4, 2019.
1. BACKGROUND:
Rich Kettler is proposing to donate two lots totaling 5.94 acres to the City of Hugo. The
properties are located north of 1401h Street North and west of Fenway Boulevard North.
2. OVERVIEW OF PROPERTIES:
Kettler Construction gained final plat approval from the City Council in August 2002 for Fenway
Place, a 34 unit twin home development located west of Fenway Avenue North and north of
140th Street North. The development includes two outlots, Outlot A and Outlot B, that were
planned as future phases but were not approved for development. Outlot A is 3.94 acres and staff
has noted that there is a significant amount of wetlands on the property and potential
development is very limited on site. Outlot B is 2.17 acres, shows wetlands on site, has an
infiltration pond and a lift station on site, and also has a portion of upland. Staff has noted that
access to both properties would require the construction of 1401h Street North.
Rich Kettler, the property owner, is proposing to donate Outlot A and Outlot B to the City of
Hugo for a non -determined use. Staff did a site visit on the property and did not note any
concerns.
Outlot A has an estimated market value of $118,200 and Outlot B is valued at $31,800 per
Washington County assessor's office. The table below shows the remaining amount due for 2019
property taxes, which would be required to be paid by the City should the property donation be
accepted. The City would also be responsible for paying property taxes in 2020. Since the
property values are remaining the same in 2020, the total estimated property taxes for both
parcels is $2,169. Overall, the City would be responsible for paying $3,295.32 in property taxes
for 2019 and 2020 on the proposed donated properties. After 2020, the City can apply to be tax
exempt for these two properties.
Page 2
Property Tax Totals
2019
Net Tax
Total Paid
Penalty
Amount Due
Outlot A
$1,709.00
$853.00
$34.12
$887.12
Outlot B
$460.00
$230.00
$9.20
$239.20
2020
Outlot A
$1,709.00
$0.00
$0.00
$1,709.00
Outlot B
$460.00
$0.00
$0.00
$460.00
Total
$3,295.32
3. CONCLUSION:
It is in staff's opinion that the properties would be a good addition to the City owned property
and did not find a reason to not accept the donation. Staff recommends the City Council discuss
the proposed donation of Outlot A and B Fenway Place. Staff recommends the City Council to
direct staff to draft a quit claim deed to accept the property donation from Rich Kettler.
Attachments:
1. Location Map
�CI-FY OF
i a V EST.
�
Rich Kettler
Proposed Property Donation
Location Map
Hugo, MN
N
0 200
Feet
1 in = 200 feet
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