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Home My WebLink About2003 [11] Nov 20 {Book 29} · www.cityofstjoseph.com ity of St. Joseph st. Joseph City Council November 20, 2003 25 College Avenue North 7:00 PM PO Box 668 1. 7:00 PM - Call to Order St. Joseph. MN 56374 (320) 363-7201 2. Approve Agenda Fax: (320) 363-0342 ADMINISTRATOR 3. Consent Agenda Judy Weyrens a. MinUtes- Requested Action: Approve minutes of October 16' 2003 b. Bills Payable - Requested Action: Approve check numbers MAYOR c. Variance Request - Requested Action: Approve a 10-foot side yard variance Larry J. Hosch request to Lange excavating to allow the construction of an Industrial Facility. d. Development Agreement - Requested Action: Authorize the Mayor and COUNCILORS Administrator to execute a Development Agreement between the City of St. Joseph and Lange Excavating to allow the construction of a 7,120 square foot building. Alan Rassier e. Development Agreement - Requested Action: Authorize the Mayor and Ross Rieke Administrator to execute a Development Agreement between the City of St. Joseph Gary Utsch and Minnesota Association of Farm Mutual Insurance Companies, LLC to allow the Dale Wick construction of a 3,200 square foot building. 4. 7: 05 PM - Public Comments to the Agenda · 5. 7:05 PM - Community Block Grant Public Hearing- Heidi Pepper 6. 7: 15 PM - Jamie Phenow, BFI- Annual Refuse Report 7. 7:25 PM - Joe Hoffman, Variance Request, 104 1 sl Ave NW 8. 7:35 PM - Brandon Kappes, Interim Use Permit, 32 1st Ave SE 9. 7:45 PM - City Engineer Reports a. Transportation Planning b. Traffic Control- 1 ih Ave SE and Dale St. E c. Other matters 10. Department Head Reports a. Public Works Director 11. Mayor Reports 12. Council Reports 13. Administrator Reports a. Utility Franchise Fee 14. Adjourn to a Closed Session to discuss LELS Labor Negotiations · 15. Reconvene Council Meeting and Adjourn DRAFT . November 6, 2003 Page 1 of5 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, November 6,2003 at 7:00 PM in the St. Joseph City Hall. Members Present: Mayor Larry Hosch. Councilors Gary Utsch, AI Rassier, Dale Wick. Administrator Judy Weyrens. Absent: Ross Rieke. City Representatives Present: City Engineer Joe Bettendorf, Public Works Director Dick Taufen. Others Present: Robbie Robinson Approve Aç¡enda: Wick made a motion'to approve the agenda as presented; seconded by Utsch and passed unanimously by those present. Consent Aç¡enda: Rassier made a motion to approve the consent agenda as follows: a. Minutes - Approve the minutes of October 2, 2003 b. Bills Payable - Approve check numbers c. Change Order - Authorize the Mayor to execute change order #2 for the 2003 Líberly Pointe Improvements. The change order compensates RL Larson Excavating $ 17,300 for additional rock excavation. I d. Application for Payment - Authorize the Mayor to execute Application for Payment #3 for the 2003 Líberly Pointe Improvements and authorize payment in the amount of $ 231,806.18 to R L. Larson Excavating. e. Application for Payment - Authorize the Mayor to execute Application for Payment #3 for the 2003 Norlhland Plat Seven and authorize payment in the amount of $ 20,972.15 to R . L. Larson Excavating. f. Application for Payment - Authorize the Mayor to execute Application for Payment in the amount of $ 4,814. 10 to Shingobee Builders for the 2003 Maintenance Facility. The motion was secondéd by Utsch and passed unanimously by those present. Public Comments to the Aç¡enda: No one present wished to speak. Rental Housinç¡ Report: Rental Housing Inspector Steve Hagman presented the Council with the annual rental housing report. Hagman stated that he has completed inspecting and licensing the rental units in the City and presented the following information: ~ Total number of rental properties licensed - 121 ~ Total number of rental units - 342 ~ Increase / decrease in rental properties from prior year - 2 Hosch questioned Hagman if any licenses were revoked due to unsafe living conditions. Hagman responded that this year no licenses were revoked, but many landlords were required to complete major improvements. Utsch questioned if the Rental Housing Ordinance defines the minimum square footage for a bedroom. Hagman stated the Ordinance makes reference to 70 square feet as the minimum square footage allowed for sleeping quarters. In addition, the Ordinance correlates the required number of parking spaces to the number of bedroom and distinguishes bedrooms over 140 square feet as two bedrooms for the purpose of determining the maximum number of required parking spaces. Rassier made a motion to accept the 2003-2004 Rental Housing Report as presented; seconded by Wick and passed unanimously by those present. . DRAFT . November 6, 2003 . Page 2 of5 CITY ENGINEER REPORTS Northland Plat Eiqht. Feasibility Report: City Engineer Joe Bettendorf presented the Council with the feasibility report for the proposed grading, utility and street construction for Northland Plat Eight. Construction is proposed for spring of 2004 with special assessments proposed for the improvements. Northland Plat Eight is the third and final phase of the Northland Six Preliminary Plat and consists of 23 single family lots. The proposed utilities will connect to the existing utilities installed in the previous two project phases. The proposed improvements will consist of extending a 10-inch water main from the northern edge of Northland Plat Six, along Northland Drive to the northern edge of Northland Plat Eight. An 8-inch water main will be installed on Jasmine Lane. Proposed 1-inch water service pipes will be provided to all lots in Northland Plat Eight. The costs of the improvement will be divided equally among all 23 lots. The table below illustrates the probable cost and assessment. Probable Pr.obable Costs Assessments Site Grading and Street $ 280,893 $ 12,213 Storm Sewer 54,376 2,362 Sanitary Sewer 46,988 2,043 Water Main 86,862 3,776 Soil Borings 3,000 130 Lift Station 600 $ 472,109 $ 21,126 per lot Wick made a motion accepting the feasibility report as presented by Bettendorf and adopted . Resolution 2003-25, Ordering the Improvement and Preparation of Plans for Northland Plat Eight. The motion was seconded by Rassier and passed unanimously by those present. Field Street Study: Bettendorf requested the Council initiate the transportation study for Field Street. The study will be funded in part through Federal Funding, which will be available in 2006. The City can advance fund the study at this time acknowledging that the federal funds will not be received until 2006. Wick questioned if the study will include a "no build" option for all or a portion of the road. Bettendorf stated that some studies result in a "no build" for the entire corridor but seldom is only a section identified as a "no build". Bettendorf stated that the first step for the corridor study is the preparation and submittal of a Project Memorandum outlining the scope of the study to be performed. The Project Memorandum can be completed within three weeks and the preparation cost is estimated at $ 2,000. Bettendorf clarified that SEH will not be completing the study; rather the City will solicit proposals from Transportation Engineers. Utsch made a motion authorizing Bettendorf to prepare the Project Memorandum for the Field Street Study. The motion was seconded by Hosch and passed unanimously by those present. Wobeqon Trail - Welcominq Center: Bettendorf presented the Council with a revised site plan for the Wobegon Trail Welcoming Center. The site plan has been modified, as Stearns County will not allow an ingress/egress from County Road 2 to the facility. Access from County Road 2 has been denied for safety reasons and Bettendorf stated he concurred with the County Engineer. The ingress/egress to the Welcoming Center will be located on 1s1 Avenue NE. It is anticipated that the grand opening for Wobegon Trail will be held between April 26 and April 29, 2004. County Road 121 Street Proiect: Bettendorf reported that the final walk through has been completed for . the County Road 121 Street Project. The County had indicated that only five sidewalk sections will be repaired. Rassier stated it was his understanding that the sidewalk in the project area has 21 sections DRAFT . November 6, 2003 Page 3 of5 with cracks and questioned why they are not being repaired. Bettendorf stated the County Engineer has indicated that their may have been contributing factors that caused the remaining cracks and do not feel the contractor should be held liable for repairing the damage. Rassier stated that it is his opinion that no matter whose fault it is, the cracks should be repaired. Bettendorf agreed to relay the comments to the Stearns County Engineer. Bettendorf stated that the sewer line gaps have not been repaired nor has the contractor agreed to the request of the Council to line the pipe around the gaps. Bettendorf stated that he informed Stearns County that the City will not settle for anything less than lining the areas identified and submitted to the general contractor. Arcon Development: The Council requested an update on the status of the Transportation Planning for the Arcon Development. Bettendorf stated that he has been in contact with the developers engineer and they are still working on finalizing the design. The project engineer is coordinating the alternative corridor routes with the Stearns County Engineer and St. Cloud Area Planning Organization. As soon as the concept plans are completed they will be forwarded to the Council for review and comment. PUBLIC WORKS DIRECTOR REPORTS Sidewalk Snow Removal: Public Works Director Dick Taufen presented the Council with a proposed snow removal sidewalk district. Taufen stated that during preparation of the 2004 Budget, the Council unanimously agreed to reduce the amount of sidewalks whereby the City would remove the snow. The Council had requested that Taufen present a sidewalk snow removal district for the Council to review. Therefore, Taufen presented the Council with the following sidewalk snow removal district: ~ MN Street Wand 2nd Avenue NW, east to MN Street and 1s1 Avenue NE and SE (both sides). . ~ MN Street Wand 1s1 Avenue NW north to County Road 75. ~ Ash Street from 2nd Avenue NW to 1st Avenue NE. ~ College Avenue N from Minnesota Street to Date Street (both sides) Hosch stated that he concurs with the plan with the exception of Ash Street East between 1s1 Avenue NE and College Avenue N. Hosch stated that in his opinion that section of sidewalk is more residential in nature and the City should only be considering commercial areas. The Council was in general agreement with Hosch. Utsch made a motion to accept the recommendation of the Public Works Director identifying the areas stated above as sidewalks whereby the City would remove the snow, with the exception of the one block area between 1st Avenue NE and College Avenue North. The motion was seconded by Rassier and passed unanimously by those present. Maintenance Facility - OSHA Requirements: Taufen presented the Council with a report from the Safety Consultant hired by the City to review the new maintenance facility in regard to OSHA requirements. The report indicates where OSHA could cite the City if they completed a safety inspection. Taufen stated that while some of the items will be completed, there would still be outstanding items. If the City establishes an implementation plan for completing the items, the City would not be in violation of OSHA regulations, as long as the City continually works on completing implementation. The Council requested that Taufen prioritize the list and prepare an implementation schedule for review and consideration. Snow Removal in St. Joseph Township: Taufen reported that he was requested to attend the St. Joseph Township Board meeting regarding snow removal. When the City annexed property only parts of roads were considered leaving one half of the road in the City and one half in the Township. The Township is requesting the City plow 16th Avenue SE in its entirety, including two cul-de-sacs, in exchange for the Township plowing Jade Street and some minor streets near the corporate limits. Taufen stated that he would review the request of St. Joseph Township and report back to the Council for consideration. . DRAFT November 6,2003 . Page 4 of5 MAYOR REPORTS Fire Board: Hosch reported that he recently attended a Fire Board meeting where the following items were discussed: ~ The contract for the sale of the Ladder Truck has expired and the Fire Board agreed to advertise the Truck without the consignment company and accept bids until February of 2004. ~ The Fire Department has applied for a FEMA Grant to assist with the purchase of a new Hearst Extraction Device. The City should be notified shortly if the Fire Department is successful. Council Meetinq Schedule: Hosch requested the Council consider revising the meeting schedule for the Council. It appears as the months October through March are slow months for Council activity, therefore, Hosch requested the Council consider meeting monthly between October and March and follow the regular two monthly meeting schedule for the remaining months. Rassier stated that it is his opinion that the Council should maintain the current schedule for meetings. Residents expect meetings twice a month and have the opportunity to address the Council with concerns. Reducing the meetings would reduce the opportunity for residents to forward concerns. Rassier stated he would prefer canceling a meeting if there were no business rather the adjusting the meeting schedule. Utsch questioned if the City would have difficulty completing land use requests within the 50-day requirement if the Council did not meet twice a month. Weyrens stated that it could become problematic, but the Council would have the ability to meet specially if needed. The Council generally agreed to maintain the existing meeting schedule. However, due to the lack of . activity in December, the 2nd meeting in December will be canceled. COUNCIL REPORTS UTSCH - No Report WICK Recreation Association: Wick reported that the St. Joseph Recreation Association met and reviewed the softball operations for the year 2003. It was determined that the State Tournaments hosted by the Recreation Association were successful and the financial impact was noticed by the area businesses. RASSIER Stearns County Leaque Meetinq: Rassier reported that he recently attended a Stearns County League Meeting where the program included a presentation by the Stearns County Attorney's Office. The County Attorney discussed the financial benefits to Cities contracting with the County for prosecution services. Due to budget constraints some municipalities have already entered into an agreement with the County as a cost saving measure. Historical Society: Rassier reported that the St. Joseph Historical Society is accepting donations of artifacts for display and preservation. ADMINISTRATOR REPORTS Finance Officer Position Update: Weyrens reported that the sub committee for the hiring of a Financial . Officer met and interviewed five candidates. One of the candidates was offered the position, but after consideration it was determined that the Committee would continue the search. Weyrens stated that she has contacted Account Temps who is in the process of checking their data base for available candidates. DRAFT . November 6, 2003 Page 5 of 5 They have indicated that they have one candidate who has govemment experience. Account Temps will notify the City when they have candidates for interview. Utility Franchise Fee: Weyrens reported that the City Attomey has completed the Ordinance/Franchise Amendments required to implement a utility franchise fee. The documents were forwarded to the Utility Companies and they objected to the first draft, but have since agreed to the revised format. The documents will be forwarded to the Council at the next meeting for adoption. Buildinq Inspection Services: Weyrens reported that the City is in the process of requesting proposals for Building Inspection Services for the year 2004. The City is seeking a firm that would contract services and staff the office. Included in the packet was a proposed list of essential functions. It is anticipated that interviews will be conducted on November 19, 2003. Adjourn: Wick made a motion to adjourn at 8:25 PM; seconded by Utsch and passed unanimously by those present. Judy Weyrens Administrator . . . I Attachment: Yes or No I REQUEST FOR COUNCIL ACTION Consent 3(c) DATE: November 20, 2003 Planning ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM Side Yard Variance - Requested Action: Approve a 10 foot side yard variance request to Lange Excavating to allow the construction of an Industrial Facility. PREVIOUS ACTION The Planning Commission conducted a public hearing on Monday, November 10,2003 to consider the application. No one testified before the Planning Commission yea or nay and the Planning Commission unanimously recommended the Council grant a 10 foot variance as requested. . RECOMMENDED BOARD ACTION Adopt the findings of the Planning Commission and approve the 10 foot variance request. FISCAL IMP ACT COMMENTS/RECOMMENDATIONS - - Loso made a motion to recommend the Council approve/deny a ten foot variance of Lange Excavating based on the following findings: RESOLUTION OF FINDING . The request of Lange Excavating for a (10) ten foot variance on the side yard setback came before the Planning Commission at a Public Hearing held on November 10,2003. The purpose of the hearing was to consider a variance to allow additional for the construction of an Industrial Facility . The property is legally described as follows: Lot 6 Block I Rennie Addition St. Joseph Code of Ordinances No. 52.33 Subd 6 Sideyard (a) states side yard shall be at least twenty-five feet from the lot line. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of S1. Joseph, the Planning Commission makes the following findings: S1. Joseph Code of Ordinances 52.07 subd 2 (a) rll states: "That there are exceptional or extraordinary circumstances or conditions applying to the property. in question as to the intended use of the property that do not apply generally to other properties in the same zoning district. The exceptional or extraordinary circumstances must not be the result of actions taken by the petitioner. FINDING: The property 'was platted under Ordinances that only required a ten foot sideyard setback. Therefore the lots are narrow and deep. S1. Joseph Code of Ordinances 52.07 subd. 2 (a) rn "states that the literal interpretation of the provisions of this Ordinance would deprive the petitioner of rights commonly enjoyed by other properties in the same district under the terms of this Ordinance". . FINDING: The Industrial Park in which this property/variance request is located is nearing completion and all the existing buildings in the park are built with a ten foot sideyard setback. St. Joseph Code of Ordinances 52.07 subd. 2 (a) [5]: "states that the condition or situation of a specific piece of property, or the intended use of said property, for which the variance was sought, is not of so general or recurrent a nature as to make reasonably practicable the formulation of a general regulation for such conditions or a situation". Fll\1])ING: The majority of the Industrial Park on 19th Avenue SE is built, therefore there are only a few lots that would require this exception. The new Industrial Parks are designed to accommodate the larger setback. St. Joseph Code of Ordinances 52.07 subd. 2 (a) rn "states that the variance would not be materially detrimental to the purposes of the zoning ordinances or property within the same zoning classification. Fll\1])ING: The 10 foot setback would be consistent with the existing structures and adjoining lots. The motion was seconded by Kalinowski. e www.cityofstjoseph.com ity of St. Joseph . CITY OF ST. JOSEPH 25 College Avenue Nòrth PUBLIC HEARING PO Box 668 5t, Joseph, MN 56374 (320) 363-7201 The Planning Commission for the City of S1. Joseph shall conduct a public hearing on Fax: (320) 363-0342 Monday, November 10, 2003 at 7:00 PM. in the S1. Joseph City Hall, 25 College Avenue North. The purpose of the hearing is to consider a fifteen foot variance on the side yard ADMINISTRATOR setback to allow the construction of an Industrial Facility. Judy Weyrens St. Joseph Code of Ordinances 52.33 subd 6 Side Yard (a): Side yard setback shall be at MAYOR least twenty-five (25) feet from the lot line. Larry J. Hosch The property is legally described as follows: Lot 6 Block 1, Rennie Addition. COUNCILORS Alan Rassier The request for variance has been submitted by GeneLange, 48 North 3rd Street; Waite Ross Rieke Park MN 56387 Gary Utsch Dale Wick Judy Weyrens Administrator . Note: State Law requires mailed notice to all property owners within 350 feet of a variance, special use, interim use òr rezoning request. . I ", ~,' "~" ."~", I I I . I I j - --- --- --- 4-=- - -- - .... 1111 - - --.....- - ---._- -- - - - -t---- --------------.---- I - I \ . I I . I ; I I I I I I - I - - - - I - - - - - - - ~----- - . 0 \~ APPLICATION FOR VARIANCE / CITY OF ST. JOSEPH ., 25 College Avenue NW Fee $ 'SC~ Paid '{( P. O. Box 668 Receipt # ~ St. Joseph, MN 56374 Date ~ (320)363-7201 or Fax (320)363-0342 STATE OF MINNESOTA) )ss COUNTY OF STEARNS) I/We, the undersigned, as owners of the property described below, hereby appeal to the City Council and Planning Commission of the City of St. Joseph, Steams County, Minnesota to grant a variance from the S1. Joseph City Code; (applicants have the responsibility of checking all applicable ordinances pertaining to their application and complying with all ordinance requirements): PROPERTY OWNER NAME(S): 6ef/è' LAtJ6e- PROPERTY OWNER PHONE NUMBER(S): z..S'- - ".s- 2- "2- ADDRESS: ZONING DISTRICT: .:r n d u. os. +v':\ ø.., l LEGAL DESCRIPTION: [or ((1 ~L-O~ C>N~ ~I.s-N ¡\J e- A b 'b IT I ò...v PROPERTY OWNER(S)' SIGNATURE(S): . The request(s) which we desire for our property islare in conflict with the following section(s) of the SI. Joseph City Code: Section 5~·'~:3. <.. Section Section S ,bt: VA~'b Se-T ~Ac::..C. Of t CO~~ }$ I Proposed non-conformance( s): ID . 20. Do any 0 the special conditions and circumstances result from your own actions (if the answer is yes, you may not qualify for a variance)? t? What facts and considerations demonstrate that the literal interpretation of the zoning code would deprive you of rights commonly enjoyed by other properties in the same district under the terms of the zoning code (attach additional pages as needed)? _e . State your reasons for believing that a variance will not confer on you any special privilege that is denied by the zoning code to other lands, structures or buildings in the same district: . · State your reasons for believing that a strict enforcement of the provisions of the zoning code would cause undue hardship, Undue hardship means that the property in question cannot be put to a reasonable use if used under the conditions allowed by the zoning ordinance, Economic considerations alone shall not onstitute an undue hardship under the terms of this code as referenced in state statutes: ¡.¡rN --n IS l..o If" I L.v'1 ¡.. "re-D I- "" L ~¿. / /. 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"- .11 ,vI I ;... .O.VI ~OOQ ,9L X .tot .0-, 10 I ¡;¡ 10 I '" '" .6 ,VI: .r ,S~ à I .".. " z :x. 52 I ~ ;... 0 ~ '0 I ~ .".. I x .... b I "" 10 '0 :ø I ;... I I Q '" ¡¡¡ 0 '" 0 ~ - . I 0 .".. 11. I J< 0 .".. Q J: I tD "" C !oJ m 0: I I:J ;... z e. 0 ~~ à I I .".. J: ~ta: .".. J< 0 !L::> 'r ~ ~~ "" . ID ~ I ;... tD b Q 0:. I I .".. a", .".. x ~ ~::a: Q J: -!oJ' l: I II: m ... ~ a.~ w I " 5: 9- J: ¡... ~ U1 ~ a z w '0 I 0 II: ~ g ::> I {< tD ;,. ID 0 w I II: ... ð. '" I '" .9 ,9 .0 ,vL .9-,1: .0 ,09 . . . I Attachment: Yes or No I . REQUEST FOR COUNCIL ACTION Consent 3(d) DATE: November 20, 2003 Planning ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM Development Agreement - Requested Action: Authorize the Mayor and Administrator to execute a Development Agreement between the City of St. Joseph and Lange Excavating to allow the construction of a 7,120 square foot building. PREVIOUS ACTION The Planning Commission considered the Development request of Lange Excavating to construct a 7,120 square foot facility. In reviewing the applicable Ordinances, the Planning Commission approved the site .-. plan as presented and requested the Council execute a Development Agreement based on the approved plan. - RECOMMENDED BOARDACTION Authorize the Mayor and Administrator to execute the Development Agreement between the City of St. Joseph and Lange Excavating. FISCAL IMPACT COMMENTS/RECOMMENDATIONS The following Development Agreement is a summary of the site plan and is being used for all Commercial and Industrial Development. The Development Agreement includes a deposit to assure that the landscaping and drainage will be completed. To view the site plan please revert back to the variance information. · CITY OF ST. JOSEPH DEVELOPER AGREEMENT THIS AGREEMENT, made and entered into this _ day of ,20_, by and between _Lange Excavating, Inc , hereinafter called "Developer", and the City of St. Joseph, Minnesota, a municipal corporation, hereinafter called the "City". WIT N E SSE T H: -. - WHEREAS, the Developer is the owner of certain real property located within the City limits which is legally describ~d as _Lot 6 Block 1, Rennie Addition according to the plat thereof on file with the Steams County, Minnesota Recorder (the "Property"); and 'WHEREAS, the Developer has submitted to the City for approval the plans and drawings listed on Exhibit A attached hereto ("Development Plan"), which describes the construction project and related facilities ("Project") the Developer proposes to construct on the Property; and WHEREAS, the City's Code of Ordinances allows the City to require a Development Agreement to provide for inspection and review during the construction of the Project; NOW, THEREFORE, in consideration of the mutual covenants expressed herein, IT IS HEREBY AGREED AS FOLLOWS: 1.0 REQUEST FOR AND CONDITIONS OF DEVELOPMENT PLAN APPRO V AL 1.1 Request for Development Plan Approval. The Developer has asked the City to grant final approval of the Development Plan for the Project to be constructed on the Property. 1 · 1.2 Conditions of Development Plan approval. The City, afterrequisite notice and hearing, has granted fmal approval of the Development Plan subject to the tenns and conditions of this Agreement. 1.3 Scope of Agreement. This Agreement, and the tenns and conditions hereof, apply only to the Project. This Agreement does not obligate Developer to construct the Project, but Developer must comply with the Agreement if it goes forward with the Project. If Developer elects or is unable to go forward with the Project, or chooses not to rebuild the Project after a fire or casualty, it may propose to the City a new project or development for the Property, subj ect to the regulations then in effect for development approvals, and the Agreement shall not apply in any manner to such new proposal. 2.0 RIGHT TO PROCEED The Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings, until all the following conditions have been satisfied: (1) this Agreement has been fully executed by both parties and filed with the City Administrator; (2) the escrow required in section 3.12 to secure perfonnance ofthe Developer's landscaping and playground equipment obligations has been received by the City; (3) the City has issued a letter that all conditions have been satisfied and that the Developer may proceed, which letter will not be unreasonably withheld or delayed. 3.0 DEVELOPER CONSTRUCTED IMPROVEMENTS - 3.1 DEVELOPMENT PLAN COMPLIANCE: All buildings and accessory structures shall be - sited and constructed on the Property as shown on the Final Site Plan prepared by Mahler : Associates .dated _10/09/03_ (referred to in Exhibit A) (hereinafter the "Development Plan"), subject to the provisions ofthis agreement. Any deviations from the Development Plan shall require prior approval by the City Planning Commission. 3.2 BUILDING STRUCTURE: Prefinished steel building with perimeter frost footings. 3.3 BUILDING CODE COMPLIANCE. All buildings and accessory structures shall be constructed in accordanèe with the Minnesota State Building Code as adopted and modified by the St. Joseph City Code. 3.4 SITE PREPARATION: The Developer shall comply with any erosion control method ordered by the City for the prevention of damage to adjacent property and the control of surface water runoff. As the development progresses, the City may impose additional erosion control requirements if in the opinion of the City Engineer such requirements are necessary. 3.5 BUILDING ELEV ATION: The proposed building( s) will not exceed the building elevations shown on the Development Plan. 2 3.6 BUILDING EXTERIOR: The building exterior shall consist of --prefinished steel . . Any changes in the exterior materials shall require prior approval by the City Planning Commission. 3.7 INGRESSÆGRESS: Vehicular access to the Property shall be as shown on the Development Plan, dated _10/09/03 , and referred to in Exhibit A. 3.8 SIGNAGE: wall sign and free standing sign not to exceed 50 square feet per face. 3.9 LIGHTING: wall PAC's on exterior of building 3.10 OFF STREET PARKING At'ID LOADING: The Developer shall provide at least off street parking spaces, including _ handicapped spaces and loading area( s), as shown on the Development Plan. The parking lot shall be constructed with a hard surface consisting of asphalt or a similar surface material approved by the City Engineer. 3.11 GRADING/DRAINAGE: The final drainage plans must be approved by both the City Engineer and County Engineer. 3.12 LANDSCAPING/FENCING/SCREENING: As directed by the landscape design, the Property will have rocks and shrubs in the north and east. The vegetation shall be planted as - shown on the landscape design. All lawn sodding and other landscaping shall be substantially complete by the "Completion Date" (See Sec. 3.20). Developer shall post -- $ 2,000 in escrow/letter of credit with the City to ensure compliance with the landscape - - design requirements under this Section. The escrowed funds shall be released to Developer when the landscaping have been installed. The HV AC equipment, dumpsters and off-street parking shall be screened from view as shown on the Development Plan. The City may inspect the Project to ensure that all required vegetation, fencing and screening are installed. 3.13 FIRE HYDRANT/FIRE LANE: As shown on the Development Plan. 3.14 UTILITY PLAN: As shown on the Development Plan. 3.15 ADDITIONAL IMPROVEMENTS: 3.16 NPDES/CITY OF ST. JOSEPH SWPPP: will be provided with building permit application. 3.17 FIRE/SAFETY REQUIREMENTS: Project must be constructed to comply with City Code and statutory requirements. 3.18 REQUIREMENTS FOR BUILDING PERMIT: No building pennit shall be issued for this Property until the Developer has signed and returned this Development Agreement, obtained 3 · any necessary easements and provided the City with a copy ofthe easement documents, and submitted any additional infonnation as directed by the City Engineer. 3.19 REQUIREMENTS FOR CERTIFICATE OF OCCUPANCY: Per State and City building codes. 3.20 CONSTRUCTION SCHEDULE: The Developer shall apply for a building pennit within one year ofthe execution ofthis agreement. Failure to apply within the one year period, shall render this agreement null and void. The improvements shall be substantially completed by the first (18t) anniversary of the date the building pennit for the Project has been issued to Developer, and no later than the second anniversary of the execution of this agreement, subject to reasonable extension for delays due to force majuere causes and material supply shortages beyond the control of Developer (the "Completion Date"). 4.0 GENERAL TERMS AND CONDITIONS 4.1 Title. The Developer hereby warrants and represents to the City, that Developer's interest in the Development is fee owner. 4.2 Binding Effect on Parties and Successors. The tenns and provisions of this Agreement shall be binding upon and accrue to the benefit ofthe heirs, representatives, successors and assigns ~ of the parties hereto and shall be binding upon all future owners of all or any part of the - Development and shall be deemed covenants running with the land. Reference herein to Developer, if there be more than one, shall mean each and all of them. This Agreement, at the option of the City, shall be placed on record so as to give notice hereof to subsequent- purchasers and encumbrances of all or any part of the Property and/or Project and all recording fees shall be paid by the Developer. If the Property and Project are sold or conveyed to a third party, and the third party, in a writing satisfactory to the City, takes an assignment of, and agrees to assume the obligations ofthe Developer under, this Agreement, the prior owner/transferor will, from and after the effective date of the assignment and assumption, be released from any further obligations under this Agreement; provided however, that in no event will _Lange Excavating be released from its obligations under this Agreement prior to the City's issuance of a certificate of occupancy for the Proj ect. 4.3 Notice. Any notices pennitted or required to be given or made pursuant to this Agreement shall be delivered personally or mailed by United States mail to the addresses set forth in this paragraph, by certified or registered mail. Such notices, demand or payment shall be deemed timely given or made when delivered personally or deposited in the United States mail in accordance with the above. Addresses of the parties hereto are as follows: 4 If to the City at: City Administrator/Clerk . City ofSt. Joseph, P.O. Box 668, St. Joseph, MN 56374 If to the Developer at: _Lange Excavating 48 3rd St. North _Waite Park, MN 56387 4.4 Incorporation of Documents by Reference. All of the Development Plan documents identified in attached Exhibit A are incorporated by reference in this Agreement. 4.5 License to Enter Land. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Property to perform inspections deemed appropriate by the City during the development of the Property. 4.6 Certificate of Compliance. This Agreement shall remain in effect until such time as Developer shall have fully performed all of its duties and obligations under this Agreement. Upon the written request of the Developer and upon the adoption of a resolution by the City Council finding that the Developer has fully complied with all the terms of this Agreement and finding that the Developer has completed performance of all Developer's duties mandated by this Agreement, the City shall issue to the Developer on behalf of the City an - appropriate certificate of compliance. The Certificate of Compliance shall be in recordable form and shall constitute prima facie evidence that the Developer has performed its duties - - and obligations under this Agreement. 4.7 Assignment. At any time before a Certificate of Compliance has been issued, this Agreement may not be assigned by Developer except upon obtaining the express written consent of the City. 4.8 Integration. This Agreement contains all of the understandings and agreements between the parties. This Agreement may not be amended, changed, or modified without the express, written consent of the parties hereto. 4.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 4.10 Governed by Minnesota Law. This Agreement shall be interpreted under the laws of the State of Minnesota. 4.11 Representation. Rajkowski Hansmeier Ltd. represents the City with regard to this Agreement. Developer is hereby advised to seek, and has consulted, an independent legal advisor prior to execution of this Agreement. 5 -- 4.12 Additional Terms. The following additional terms are being made a part of this Development Agreement to continue in force and effect as though they were dedications of the Development Plan, unless according to their terms are intended to terminate earlier: 5.0 DEFAULT AND REMEDIES 5.1 Default. Failure by the Developer to observe and perform any covenant, condition, or obligation contained in this Agreement shall be considered a default by the Developer under the Agreement. 5.2 Right to Cure. The City shall give the Developer written notice of any default under this Agreement. The Developer shall have 10 days in which to cure the default (or in which to commence good faith efforts to cure if the default is one which cannot reasonably be cured in 10 days). 5.3 Remedies. If an event of default is not cured by the Developer within the applicable cure period, the City may do any, all or any combination of the following: - (a) halt all further approvals regarding improvements or issuance of building permits or occupancy permits relating to the Development Property; (b) seek injunctive relief; (c) take any other action at law or in equity which may be available to the City. Effective as of the day and year first written above. CITY: ATTEST CITY OF ST. JOSEPH By By Judy Weyrens Larry Hosch City Administrator/Clerk Mayor 6 STATE OF MINNESOTA ) . )ss COUNTY OF STEARNS ) On this _ day of ,20 , before me, a notary public within and for said County, personally appeared Larry Hosch and Judy Weyrens, to me personally known, who, being each by me duly sworn did say that they are respectively the Mayor and the City Administrator/Clerk of the City of St. Joseph, Minnesota, the municipal corporation named in the foregoing instrument, that said instrument was signed on behalf of said municipal corporation by authority of its City Council and said Mayor and City Administrator acknowledged said instrument to be the free act and deed of said corporation. Notary Public DEVELOPER: Randy Lange, President - STATE OF MINNESOTA ) )ss - COUNTY OF STEARNS ) On this _day of , 20_, before me, a notary public within and for said County, personally appeared on behalf of , the Developer named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its Board of Govemors/Directors and said President/CEO acknowledged said instrument to be the free act and deed of said corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Thomas G. Jovanovich - 5284X Susan M. Dege - 0290385 Rajkowski Hansmeier Ltd. 11 Seventh Avenue North P.O. Box 1433 St. Cloud, Minnesota 56302 Telephone: (320) 251-1055 7 · I Attachment: Yes or No I REQUEST FOR COUNCIL ACTION DATE: November 20,2003 Planning ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM Development Agreement - Requested Action: Authorize the Mayor and Administrator to execute a Development Agreement between the City of St. Joseph and Minnesota Association of Farm Mutual Insurance Companies, LLC to allow the construction of a 3,200 square foot building. PREVIOUS ACTION The Planning Commission considered the Development request of Minnesota Association of Farm - Mutual Insurance Companies to construct a 3,200 square foot facility. In reviewing the applicable - Ordinances, the Planning Commission approved the site plan as presented and requested the Council execute a Development Agreement based on the approved plan. RECOMMENDED BOARD ACTION Authorize the Mayor and Administrator to execute the Development Agreement between the City of St. Joseph and Minnesota Association of Farm Mutual Insurance Company. FISCAL IMP ACT None COMMENTS/RECOMMENDATIONS The following Development Agreementis a summary of the site plan and is being used for all Commercial and Industrial Development. The Development Agreement includes a deposit to assure that the landscaping and drainage will be completed. To view the site plan please revert back to variance information. · CITY OF ST. JOSEPH DEVELOPERAGREEMŒNT THIS AGREEMENT, made and entered into this _ day of ,20_, by and between Minnesota Association of Farm Mutual Insurance , hereinafter called "Developer", and the City of St. Joseph, Minnesota, a municipal corporation, hereinafter called the "City". - WIT N E SSE T H: --- WHEREAS, the Developer is the owner of certain real property located within the City limits which is legally described as the westerly 150 feet of Lot 1 Block 2 of Indian Hills Park Plat according to the plat thereof on file with the Steams County, Minnesota Recorder (the "Property"); and WHEREAS, the Developerhas submitted to the City for approval the plans and drawings listed on Exhibit A attached hereto ("Development Plan"), which describes the construction project and related facilities ("Project") the Developer proposes to construct on the Property; and WHEREAS, the City's Code of Ordinances allows the City to require a Development Agreement to provide for inspection and review during the construction of the Project; NOW, THEREFORE, in consideration ofthe mutual covenants expressed herein, IT IS HEREBY AGREED AS FOLLOWS: 1.0 REQUEST FOR AND CONDITIONS OF DEVELOPMENT PLAN APPROVAL 1.1 Request for Development Plan Approval. The Developer has asked the City to grant final approval of the Development Plan for the Project to be constructed on the Property. 1 · 1.2 Conditions of Development Plan approval. The City, after requisite notice and hearing, has granted [mal approval of the Development Plan subject to the tenns and conditions of this Agreement. 1.3 Scope of Agreement. This Agreement, and the tenns and conditions hereof, apply only to the Project. This Agreement does not obligate Developer to construct the Project, but Developer must comply with the Agreement if it goes forward with the Project. If Developer elects or is unable to go forward with the Proj ect, or chooses not to rebuild the Proj ect after a fire or casualty, it may propose to the City a new proj ect or development for the Property, subject to the regulations then in effect for development approvals, and the Agreement shall not apply in any manner to such new proposal. 2.0 RIGHT TO PROCEED The Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings, until all the following conditions have been satisfied: (1) this Agreement has been fully executed by both parties and filed with the City Administrator; (2) the escrow required in section 3.12 to secure perfonnance of the Developer's landscaping and playground equipment obligations has been received by the City; (3) the City has issued a letter that all conditions have been satisfied and that the Developer may proceed, which letter will not be unreasonably withheld or delayed. 3.0 DEVELOPER CONSTRUCTED IMPROVEMENTS 3.1 DEVELOPMENT PLAN COMPLIANCE: All buildings and accessory structures shall be sited and constructed~ on the Property as shown on the Final Site Plan prepared by Mahler : Associates dated 10/20/03 (referred to in Exhibit A) (hereinafter the "Development Plan"), subject to the provisions ofthis agreement. Any deviations from the Development Plan shall require prior approval by the City Planning Commission. 3.2 BUILDING STRUCTURE: 3200 square foot office building consisting of laµ siding and brick. 3.3 BUILDING CODE COMPLIANCE. All buildings and accessory structures shall be constructed in accordance with the Minnesota State Building Code as adopted and modified by the St. Joseph City Code. 3.4 SITE PREPARATION: The Developer shall comply with any erosion control method ordered by the City for the prevention of damage to adjacent property and the control of surface water runoff. As the development progresses, the City may impose additional erosion control requirements if in the opinion of the City Engineer such requirements are necessary. 3.5 BUILDING ELEV A TION: The proposed building( s) will not exceed the building elevations shown on the Development Plan. 2 · 3.6 BUILDING EXTERIOR: The building exterior shall consist of lap siding and brick with 50% of the building exterior finish in decorative material, not consisting of steel siding. Any changes in the exterior materials shall require prior approval by the City Planning Commission. 3.7 INGRESSÆGRESS: Vehicular access to the Property shall be as shown on the Development Plan, dated 10120/03 , and referred to in Exhibit A. 3.8 SIGNAGE: Double faced sign will be located on the south side of the building and the sign will not exceed 200 square feet if double faced. 3.9 LIGHTING: Lighting will be placed in the parking area. 3.10 OFF STREET PARKING AND LOADING: The Developer shall provide at least 24 off street parking spaces, including -L handicapped spaces and loading area( s), as shown on the Development Plan. The parking lot shall be constructed with a hard surface consisting of asphalt or a similar surface material approved by the City Engineer. 3.11 GRADING/DRAINAGE: The [mal drainage plans must be approved by both the City Engineer and County Engineer. 3.12 LANDSCAPJNG/FENCING/SCREENING: As directed by the landscape design, the Property will have a minimum of _trees and _shrubs. The vegetation shall be planted as shown on the landscape design. All lawn sodding and other landscaping shall be substantially complete by the "Completion Date" (See Sec. 3.20). Developer shall post $ 2,000 in escrow/letter of credit with the City to ensure compliance with the landscape - - design requirements under this Section. The escrowed funds shall be released to Developer when the landscaping have been installed. The HV AC equipment, dumpsters and off-street parking shall be screened from view as shown on the Development Plan. The City may inspect the Project to ensure that all required vegetation, fencing and screening are installed. 3.13 FIRE HYDRANT/FIRE LANE: As shown on the Development Plan. 3.14 UTILITY PLAN: As shown on the Development Plan. 3.15 ADDITIONAL IMPROVEMENTS: 3.16 NPDES/CITY OF ST. JOSEPH SWPPP: will be provided with buildingpennit application. 3.17 FIRE/SAFETY REQUIREMENTS: Project must be constructed to comply with City Code and statutory requirements. 3 · 3.18 REQUIREMENTS FOR BUILDING PERMIT: No building permit shall be issued for this Property until the Developer has signed and returned this Development Agreement, obtained any necessary easements and provided the City with a copy ofthe easement documents, and submitted any additional information as directed by the City Engineer. 3.19 REQUIREMENTS FOR CERTIFICATE OF OCCUPANCY: Per State and City building codes. 3.20 CONSTRUCTION SCHEDULE: The Developer shall apply for a building permit within one year ofthe execution ofthis agreement. Failure to apply within the one year period, shall render this agreement null and void. The improvements shall be substantially completed by the first (1 st) anniversary of the date the building permit for the Project has been issued to Developer, and no later than the second anniversary of the execution of this agreement, subject to reasonable extension for delays due to force majuere causes and material supply shortages beyond the control of Developer (the "Completion Date"). 4.0 GENERAL TERMS AND CONDITIONS 4.1 Title. The Developer hereby warrants and represents to the City, that Developer's interest in the Development is fee owner. - 4.2 Binding Effect on Parties and Successors. The terms and provisions of this Agreement shall - be binding upon and accrue to the benefit ofthe heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Development and shall be deemed covenants running with the land.- Reference herein to Developer, ifthere be more than one, shall mean each and all of them. This Agreement, at the option of the City, shall be placed on record so as to give notice hereof to subsequent purchasers and encumbrances of all or any part of the Property and/or Project and all recording fees shall be paid by the Developer. If the Property and Project are sold or conveyed to a third party, and the third party, in a writing satisfactory to the City, takes an assignment of, and agrees to assume the obligations ofthe Developer under, this Agreement, the prior owner/transferor will, from and after the effective date of the assignment and assumption, be released from any further obligations under this Agreement; provided however, that in no event will Minnesota Association of Farm Mutual Insurance Company be released from its obligations under this Agreement prior to the City's issuance of a certificate of occupancy for the Project. 4.3 Notice. Any notices permitted or required to be given or made pursuant to this Agreement shall be delivered personally or mailed by United States mail to the addresses set forth in this paragraph, by certified or registered mail. Such notices, demand or payment shall be deemed timely given or made when delivered personally or deposited in the United States mail in accordance with the above. Addresses of the parties hereto are as follows: 4 If to the City at: City Administrator/Clerk . City ofSt. Joseph, P.O. Box 668, St. Joseph, MN 56374 lito the Developer at: Minnesota Association of Farm Mutual Insurance 325 33rd Ave North Suite 107 St. Cloud, MN 56303-1929 4.4 Incorporation of Documents by Reference. All of the Development Plan documents identified in attached Exhibit A are incorporated by reference in this Agreement. 4.5 License to Enter Land. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Property to perform inspections deemed appropriate by the City during the development of the Property. 4.6 Certificate of Compliance. This Agreement shall remain in effect until such time as Developer shall have fully performed all of its duties and obligations under this Agreement. Upon the written request ofthe Developer and upon the adoption of a resolution by the City Council finding that the Developer has fully complied with all the terms of this Agreement and finding that the Developer has completed performance of all Developer's duties mandated by this Agreement, the City shall issue to the Developer on behalf of the City an - appropriate certificate of compliance. The Certificate of Compliance shall be in recordable - form and shall constitute prima facie evidence that the Developer has performed its duties and obligations under this Agreement. 4.7 Assignment. At any time before a Certificate of Compliance has been issued, this Agreement may not be assigned by Developer except upon obtaining the express written consent ofthe City. 4.8 Integration. This Agreement contains all of the understandings and agreements between the parties. This Agreement may not be amended, changed, or modified without the express, written consent of the parties hereto. 4.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 4.10 Governed by Minnesota Law. This Agreement shall be interpreted under the laws of the State of Minnesota. 4.11 Representation. Rajkowski Hansmeier Ltd. represents the City with regard to this Agreement. Developer is hereby advised to seek, and has consulted, an independent legal advisor prior to execution of this Agreement. 5 · 4.12 Additional Tenns. The following additional tenns are being made a part of this Development Agreement to continue in force and effect as though they were dedications of the Development Plan, unless according to their tenns are intended to tenninate earlier: 5.0 DEFAULT AND REMEDIES 5.1 Default. Failure by the Developer to observe and perfonn any covenant, condition, or obligation contained in this Agreement shall be considered a default by the Developer under the Agreement. 5.2 Right to Cure. The City shall give the Developer written notice of any default under this Agreement. The Developer shall have 10 days in which to cure the default (or in which to commence good faith efforts to cure ifthe default is one which cannot reasonably be cured in 10 days). 5.3 Remedies. If an event of default is not cured by the Developer within the applicable cure period, the City may do any, all or any combination of the following: (a) halt all further approvals regarding improvements or issuance of building pennits or occupancy pennits relating to the Development Property; (b) seek injunctive relief; (c) take any other action at law or in equity which may be available to the City. Effective as of the day and year first written above. CITY: ATTEST CITY OF ST. JOSEPH By By Judy Weyrens Larry Hosch City Administrator/Clerk Mayor 6 STATE OF MINNESOTA ) . )ss COUNTY OF STEARNS ) On this _day of ,20 , before me, a notary public within and for said County, personally appeared Larry Hosch and Judy Weyrens, to me personally known, who, being each by me duly sworn did say that they are respectively the Mayor and the City Administrator/Clerk ofthe City of S1. Joseph, Minnesota, the municipal corporation named in the foregoing instrument, that said instrument was signed on behalf of said municipal corporation by authority of its City Council and said Mayor and City Administrator acknowledged said instrument to be the free act and deed of said corporation. Notary Public DEVELOPER: STATE OF MINNESOTA ) )ss COUNTY OF STEARNS ) On this _ day of ,20_, before me, a notary public within and for said County, personally appeared on behalf of , the Developer named in the foregoing instrument, and that said instrument was signed on behalf of said company by authority of its Board of Govemors/Directors and said President/CEO acknowledged said instrument to be the free act and deed of said corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Thomas G. Jovanovich - 5284X Susan M. Dege - 0290385 Rajkowski Hansmeier Ltd. 11 Seventh Avenue North P.O. Box 1433 S1. Cloud, Minnesota 56302 Telephone: (320) 251-1055 7 i I I APPLICATION FOR PLANNING CONSIDERATION ¡ \ · CITY OF ST. JOSEPH 25 College Avenue NW Fee $ Paid ! P. O. Box 668 Receipt # Date I St. Joseph, MN 56374 (320)363-7201 or Fax (320)363-0342 I STATE OF MINNESOTA) )55 ¡ COUNTY OF STEARNS) NAME: Minnesota Association of Farm Mutual PHON~ 320-255-0909 Insurance Companies, Inc. ADDRESS: 325 33rd Avenue North, Suite 107, St. Cloud, MN 56303-1929 i I/We, the undersigned, hereby make the following application to the City Council and Planning Commission of the City of St. Joseph, Stearns County, ! Minnesota. (Applicants have the responsibility of checking all applicable ordinances pertaining to their application and complying with all ordinance ; í requirements): ! 1. Application is hereby made for: (Applicant must check any/all appropriate items) : _ Rezoning _ Zoning Ordinance Amendment _ Home Occupation Permit I _ Surface Water Management Plan (Grading Permit) PUD _ Building Mover's Permit i - ¡ _ Building Moving - Owner's Permit ~ Development Plan Approval _ Other, please specify: · I 2. Legal description of land to be affected by ap¡Jlication, including acreage or square footage of land involved, and street ! address, if any: * Legal Description Below 45,600 square feet xxxx ~lm ~treet ~ast, lnd~an H~~l tlus~ness ~ark I I B-2 I 3. Present zoning of the above described property is: I 4. Name, address and phone number of the present owner of the above described land: Imperial Properties, LLC ! i 701 Elm Street E.ist, P. O. Box 609, St. Joseph, MN 56374 320-353-0783 ¡ 5. Persons, firms, corporations or other than applicant and present owner who mayor will be interested in the above described ! laW /I proposed improvements within one year after issuance of permit applied for, if granted, are: ( I 6. Attached to this application and made a part thereof are additional material submission data requirements, as I indicated. i Applicant Signature: Date: / t) - øGð - ð.3 I I Owner Signature: Date: 1t) - 2.0-0~ FOR OFFICE USE ONL Y j i i DATE SUBMITTED: DATE COMPLETE: DATE OF PUBLIC HEARING PUBLICATION DATE: Planning Commission Action: _ Recommend Approval _ Recommend Disapproval Date of Action: I I Date ApplicanUProperty Owner notified of Planning Commission Action: i · City Council Action: _ Approved _ Disapproved Date of Action: ! Date ApplicanUProperty Owner notified of City Council Action: 1 *The westerly 150 feet of Lot 1 of Block 2 of Indian Hill Park Addition to the city of St. Joseph, Stearns County, Minnesota. (Dimensions of 150 feet by 304 í feet for a total of 45,600 square feet) ¡ Project: ,Minnesota Association of Farm Mutual Insurance Company Determination: --L- COMPLETE - INCOMPLETE Developer: DM Builders Page 1 of 2 · City of St. Joseph Required Material Submission Development Plan Applications Completed applications for Development Plans and required fees shall be submitted the City of St. Joseph Zoning Administrator at least 10 days prior to the proposed date of consideration by the City. The ten daýs allows the City to review the application and forward the application to olher entities for review when required, Only completed applications will be accepted. It is the applicant's responsibility to submit required materials, If an application is determined to be incomplete, notification, which indicates which portion ofthe application is incomplete, will be mailed to the applicant within 10 days following submission of the application. REQUIRED MATERIALS- The applicant shall provide the following: Requirements Complete Comments 1 Is the proposed use a permitted use NO 2 Lot Area - Minimum Requirement (10,000 sq ft) NO Lot area is 45,385 sq. feet 3 Setback Requirements a) CR 75 -10 foot landscaped setback from the YES II Not applicable highway right of way line. Any structure shall have a 20 foot setback from the ROW. b) Front Yard - 20 feet from the lot line NO The actual setback is 84' c) Side Yard -10 feet from the lot line. If the side The actual side yard setbacks are as follows: yard is adjacent to CR 75 the structure shall have NO West - 28' · a 20 foot setback East - 26' d) Rear Yard - 20 feet, 35 feet if abutting R1 This project abuts an R1 zoning district requiring a 35' setback -The actual sètback exceeds 35 feet 4 Height Requirements - Maximum height 3 stories or 40 NO The building will be 18'11', feet 5 Site Coverage - No structure may cover> 60% NO The building area is 7.05% of the lot area. 6 Parking Lots - paving stones, concrete, bituminous NO The parking lot and drive will be asphalt. The area will curbed as well 7 Loading Docks - Loading docks must be 10' x 50 YES NO There are no loading docks but a service door is located on the east Doors may not face CR 75 of the building 8 Exterior Requirements - 50% of the building exterior NO It appears as the building exceeds the fifty percent exterior must be face brick, natural stone, cultured rock, glass, requirement. vinyl, stucco, 9 Screening of HVAC and refuse container NO The HVAC and refuse container are screened to match the building, 11 Lighting may not be directed towards CR 75 with a NO The final light plan will be submitted with the maximum spillage of .40 candle watts at the property · line 12 Stops and Curbs - 8612 must be used for all automobile NO Curbing is provided Project: Minnesota Association of Farm Mutual Insurance Company Determination: -L- COMPLETE - INCOMPLETE Developer: OM Builders Page 2 of 2 stops and for all drive and parking areas. . 13 Landscaping ~~Ë$. NO Grass and Landscaping (Juniper, Spiraea, Weigela) 14 Development Plan - The following items must be detailed on the site plan. a) Building Location on the lot drawn to size ¥'E$ NO Indicated on Plan b) Building elevations; fron\, rear, side YES NO Indicated on Plan c) Building Exterior material and color YES NO Brick, Efis and Lap siding. The building will be cream and maroon. d) Locations of ingress/egress ~'(~ NO Indicated on Plan e) Dumpster/solid waste areas screened : 'XES NO See comments above D Sign Location and dimensions YES NO A sign will be located in the front of the building, free standing g) Lighting Standard and hood detail YES NO Indicated on the plan h) Parking and loading areas defined 'YES NO Indicated on the Plan i) Drainage by the use of arrmvs and/or contours "YES NO Bettendorf is reviewing preliminary plan j) Screening of HV AC Equipment YES NO Indicated on the Plan k) Landscaping material including the location, type, size eYES NO Indicated on the Plan I) Fire hydrant and fire lane locations YES NO The site is 75 feet from the hydrant on the other side of Northland. . m) Utility Locations YES NO n) Fencing/screening/accessory buildings identified YES NO 0) NPDES Permitting requirements fulfilled XE$ NO Will be submitted with the building permit p) Compliance with state and federal guidelines including, YES NO but not limited to glare, smoke, dust, odors, and noise. q) Required fee YES NO 16 Sign age - Maximum square foot per face, 100 sq ft with YES NO The sign will not exceed 200 square feet a maximum aggregate total of 200 square feet Wall Sign - Cannot exceed one and one-half square feet YES NO Will not exceed the minimum requirements per lineal fro:ìt foot or fifteen percent of the building frontage area or seventy five feet which ever is greatest. 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Joseph, MN 56374 (320) 363-720 I Fax: (320) 363-0342 ADMINISTRATOR The City Council of the City of St. Joseph shall hold a public hearing on Thursday, November Judy Weyrens 20 at 7:00 PM at the St. Joseph City Hall, 25 College Avenue North, St. Joseph, MN. The purpose of the hearing is to provide an opportunity for citizen input on the Small Cities MAYOR Development Program grant funds that were obtained for the County Rd. 121 project and Larry J. Hosch assessment abatement program. Written and oral testimony will be accepted from any person (s) who wish to present such testimony. Written testimony must be submitted to the City COUNCILORS Administrator, PO Box 668, St. Joseph, MN 56374-0668. Alan Rassier Ross Rieke Gary Utsch Dale Wick Judy Weyrens City Administrator Publish: November 8, 2003 . . . I Attachment: Y es or~ I REQUEST FOR COUNCIL ACTION DATE: November 20, 2003 Administration ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM Annual presentation of service report from Jamie Phenow ofBFI, Browning Ferris Industries. PREVIOUS ACTION . RECOMMENDED BOARD ACTION None FISCAL IMP ACT None COMMENTS/RECOMMENDATIONS - - . I Attachment: Yes or No ¡ REQUEST FOR PLANNING COMMISSION ACTION Variance Request - Hoffmann DATE: November 10,2003 AGENDA ITEM Public Hearing -Joseph Hoffmann, Rear/Side Yard and lot coverage variance. PREVIOUS ACTION RECOMMENDED PLANNING COMMISSION ACTION . CO~ENTS!RECOMMENDATIONS In the past the Planning Commission has denied a variance that required the issuance of a second variance. In this case before the Planning Commission at this meeting, the variance for the maximum lot coverage must be issued in order for the Planning Commission to consider the other two variances. In essence you would be granting a variance for a variance. The property owner could move the garage two feet to meet the setback requirements, thereby only needing one variance on the lot coverage. This property is zoned General Business with the use being a non conforming use. Therefore the most restrictive setbacks are used, which is R1. (This was verified with the City Attorney). Enclosed is the format for establishing a variance. In reviewing this matter the desire to reconstruct the garage is reasonable and is a right enjoyed by all R1 property owners. So I believe findings could be made to grant the lot coverage variance, but it appears as though the property owner has the ability to construct the garage without relief rrom the rear and side yard setback. - - Kalinowski made a motion to recommend the Council to deny the two, two foot variances of Joe Hoffmann based on the following findings: RESOLUTION OF FINDING . The request of Joe Hoffman for two, two foot variances on side and rear yard setbacks came before the Planning Commission at a Public Hearing held on November la, 2003. The purpose of the hearing was to consider a variance to allow for the replacement of an accessory building The property is legally described as follows: N54' of the 8116' of Lot 7 Block 12 Townsite ofSt. Joseph 8t. Joseph Code of Ordinances 52.12 8ubd. 1 (a) states: In all residential districts detached accessory buildings shall be located in the rear yard. When located within ten (10) feet of the rear wall of the principal building they shall comply with all yard requirements applicable to the principal building in the district. Where accessory buildings are to be located more than ten (10) feet from a rear wall of the principal building they shall not be located closer than five (5) feet from an adjoining side or rear lot line. All accessory buildings shall setback a minimum of fifty (50) feet from front street right-of-way lines. Accessory buildings are further limited not to exceed over one (1) story of sixteen (16) feet in height. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of8t. Joseph, the Planning Commission makes the following findings: 8t. Joseph Code of Ordinances 52.07 subd 2 (a) f11 states: "That there are exceptional or extraordinary circumstances or conditions applying to the property in question as to the intended use of the property that do not apply generally to other properties in the same zoning district. The exceptional or extraordinary circumstances must not be the result of actions taken by the petitioner. FINDING: There is no hardship present and the property owner has the ability to move the . garage two feet and construct the requested garage. - 8t. Joseph Code of Ordinances 52.07 subd. 2 (a) [21: "states that the literal interpretation of the provisions of this Ordinance would deprive the petitioner of rights cOIllillOnly enjoyed by other properties in the same district under the tenns of this Ordinance". FINDING: The granting of this Variance would grant this property owner rights in contradiction to the Ordinances not granted other property owners in the same zoning district. 81. Joseph Code of Ordinances 52.07 subd. 2 (a) f71: "states that the variance would not be materially detrimental to the purposes of the zoning ordinances or property within the same zoning classification. FINDING: The variance would be inconsistent with the ZÆ>ning Ordinances. The motion was seconded by Deutz. - - Kalinowski made a motion to recommend the Council to approve an eight foot variance of Joe Hoffmann based on the following findings: . RESOLUTION OF FINDING The request of Joe Hoffinan an (8) eight foot variance on the maxnTIlJ?llot coverage in a R1 Zoning District came before the Planning Commission at a Public Hearing held on November 10,2003. The purpose of the hearing was to consider a variance to allow for the replacement of an accèssory building The property is legally described as follows: N54' of the S116' of Lot 7 Block 12 Townsite ofSt. Joseph St. Joseph Code of Ordinances 52.12 Subd. 9 states: No structure shall occupy more than 30% of the lot area. In consideration of the infonnation presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the following [mdings: St. Joseph Code of Ordinances 52.07 subd 2 (a) rI 1 states: "That there are exceptional or exuaordinary circumstances or conditions applying to the property in question as to the intended use of the property that do not apply generally to other properties in the same zoning district. The exceptional or exuaordinary circumstances must not be the result of actions taken by the petitioner. FINDING: The property owner is requesting to reconstruct an existing garage that was built before the current Ordinances were adopted. The garage will be built to the same size as the existing garage. However, due to the small lot the lot coverage will be exceeded. St. Joseph Code of Ordinances 52.07 subd. 2 (a) [21: "states that the literal interpretation of the provisions of this Ordinance would deprive the petitioner of rights commonly enjoyed by other properties in the same . district under the terms of this Ordinance". FINDING: The property owner would be denied the right to have a garage if he could not rebuild his garage, and that right is enjoyed by all property owners in an Rl Zoning District. St. Joseph Code of Ordinances 52.07 subd. 2 (a) [5]: "states that the condition or situation of a specific piece of property, or the intended use of said property, for which the variance was sought, is not of so general or recurrent a nature as to make reasonably practicable the fonnulation of a general regulation for such conditions or a situation". FINDING: The lot was platted as part of the Original Townsite and the lots platted after 1990 were significantly larger. Therefore this will not be a recurring issue. St. Joseph Code of Ordinances 52.07 subd. 2 (a) r7l: "states that the variance would not be materially detrimental to the purposes of the zoning ordinances or property within the same zoning classification. FINDING: The property surrounding the subject property consists of small lots with accessory buildings and the development would be consistent with surrounding property. The motion was seconded by Deutz. -.. . I Attachment: Yes or No ~ REQUEST FOR COUNCIL ACTION 7 - Joe Hoffman, Ýarianc'e Request DATE: November 20, 2003 Planning ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM Variance Request - Joe Hoffman Eight foot lot coverage, 2 foot side and rear yard setback PREVIOUS ACTION The Planning Commission conducted a public hearing on November 10,2003 to consider the variance request of Joe Hoffman. Hoffmann was requesting three variances and nvo variances were dependent upon the fIrst variance. Please see Planning Commission Action Form. The Planning Commission agreed that Mr. Hoffmann should be allowed to rebuild his accessory building and recommended the . Council grant an eight foot variance on the maximum lot coverage to allow such. However, the side and rear yard variances were denied by the Planning Commission. The Property Ovmer has the ability to construct the garage without receiving a variance. While the propert)~ owner indicated he had hoped to use the existing foundation, thereby reducing his cost, the Planning Commission stated that a variance cannot be granted for financial reason. RECOMMENDED BOARD ACTION Accept the findings of the Planning Commission and grant an eight (8) foot Variance to Joe Hoffman on the maximum lot coverage and deny the variances for the side and rear yard based on the attached fmdings. COMMENTSIRECOMMENDATIONS The recommendation to issue the Interim Use Permit was passed by a vote of 6-1. As the decision was not unanimous the item is not placed on the consent agenda. Just a reminder that when a Land Use Application is denied the Council must clarify their reason for voting no and they will become part of the findings. - .- . www.cityofstjoseph.com ity of St. Joseph CITY OF ST. JOSEPH 25 College Avenue North PUBLIC HEARING PO Box 668 St. Joseph. MN 56374 (320) 363-720 I The Planning Commission for the City of St. Joseph shall conduct a public hearing on Fax: (320) 363-0342 Monday, November 1 0, 2003 at 7:20 PM. in the St. Joseph City Hall, 25 College Avenue North. The purpose of the hearing is to consider the following variances: 1) Two foot ADMINISTRATOR variance on the rear yard setback; 2) Two foot variance on the 'side yard setback; 3) Eight Judy Weyrens foot variance on the maximum lot coverage. The variances are being requested to reconstruct the accessory building located at 104 - 1 sl Avenue NW, legally described as: MAYOR N54' of the S116' of Lot 7 Block 12 Townsite of St. Joseph. Larry J. Hosch St. Joseph Code of Ordinances 52.12 Subd. 1 (a) states: In all residential districts COUNCILORS detaèhed accessory buildings shall be located in the rear yard. When located within ten Alan Rassier (10) feet of the rear wall of the principal building they shall comply with all yard Ross Rieke requirements applicable to the principal building in the district. Where accessory buildings Gary Utsch are to be located more than ten (10) feet from a rear wall of the principal building they shall Dale Wick not be located closer than five (5) feet from an adjoining side or rear lot line. All accessory buildings shall setback a minimum of fifty (50) feet from front street right-of-way lines. Accessory buildings are further limited not to exceed over one (I) story of sixteen (16) feet in height. . St. Joseph Code of Ordinances 52.12 Subd. 9 states: No structure shall occupy more than 30% of the lot area. The request for variance has been submitted by Joe Hoffmann, 104 - fSI Avenue NW, St. Joseph MN 56374. Judy Weyrens Administrator Note: State Law requires mailed notice to all property owners within 350 feet of a variance, special use, interim use, or rezoning request. - ~ >~""_____"'_~~____~~.'_:_'.~_ ~ _ _. ~ _ ._. _~, L _ _ _ __ H~ .' ~-,,-,-. ..-""--..."'...:.--. ~-~,--~ .~'.'~". . --.". -00 - ---.-'. , :J ::> W -< I- 0 i w :iN '3N" , '3AV l. YI.:I I I I I ~ I I +-- I / I / J0> I I ,Ii :V \ I \ I -, I I I I APPLICATION FOR VARIANCE . 'CITY OF ST. JOSEPH 25 College Avenue NW Fee $ Paid P. O. Box 668 Receipt # St. Joseph, MN 56374 Date (320)363-7201 or Fax (320)363-0342 STATE OF MINNESOTA) )SS COUNTY Of STEARNS) I/We, the undersigned, as owners of the property desenbed below, hereby appeal to the City Council and Planning Commission of the City of Sf. Joseph, Steams County, Minnesota to grant a variance from the Sf. Joseph City Code; (applicants have the responsibility of checking all applicable ordinances pertaining to their application and complying with all ordinance requirements): PROPERTY OWNER NAME(S): 00je..-ph ~ !.{,I:~'yv-\CkV\. Y\ PROPERTY OWNER PHONE NUMBER(S): '"3JD .- ~b3-7J3) S' ADDRESS:--1 0 Lf J" f Av-t/ /111/(/ ZONING DISTRICT: LEGAL DESCRIPTION: ~;#~ PROPERTY OWNER(S)' SIGNATURE(S): . The request(s) which we desire for our property islare in conflict with the following section(s) of the St. Joseph City Code: Section Section Section Proposed non-conformance(s): Do any of the special condition~ and circumsta~es result from y?ur own actions (ifthe answer is y~s, ¡au may rio,t qualify for a variance)? 1/CJ ~ /!,f1hw tJ, 117 i.v, Å.,.,."t5 A .t1.-U\,(JY +hof' (t'>J What facts and considerations demonstrate that the literal interpretation of the zoning code would deprive you of rights commonly enjoyed by other properties in the same qistrict under the terms of the zoning code (attach additional pages as needed)? 'r: ~: ~+~ .f} \t)'U" " ]c+ Ã-\'\O j.hl,\.s-r- #V\1î th..,..J' 1A..l-t'l"¥'" 5Mv. }fr"o() r ~ 't.h State your reasons for believing that a variance V>'iII not confer on you any special privilege thatJs denied by the zoning code to other lands, structures or buildings in the same district: 1'""'0\;+ Ii+- he. é(o.î'1F¡¿ 1,'5 A.lre.--..lh +- 'h-e.re- 4r-.O '[VIA 6A 1y fte-A!A.lO"l"lj ïN h,"+:5 -4 (~{""·1.()Y t her(Q . - State ro~r reasons for believing that the action(s) you propose to take is~arein keeping with the spirjt and ~tent of th~ oning code? I t5 ,...,.,'('0:, (; t D ~ p, /-lY\()}() wè. ~ kr> (1 A\''\f'I TY\A OI"J·/ aC. P,·~dMI/I<.. Ì1Jí~-t-s .J~:e<:...J?.Y ~l;~~n5J",·"",~ . t\"-t ..y....,~ )? ¡1"('I"V þ1J i'~y\ð) ..:,(\N-¿.., ..4Y\ -e;;ê..snrt:... State your reasons for believing that a strict enforcement of the provisions of the zoning code would cause undue hardship. Undue hardship means that the property in question cannot be put to a reasonable use if used under the conditions allowed by the zoning ordinance. Economic considerations alone shall not constitute an undue hardship under the terms of this code as referenced in state statutes: --.--- ------ -- Attached to this application and made a part thereof are other material submission data requirements, as indicated. Applicant Signature: Date: Owner Signature: Date: FOR OFFICE USE ONLY DATE APPLICATION SUBMITTED: DATE APPLICATION COMPLETE: . Planning Commission Action: _ Recommend Approval _ Recommend Disapproval Date of Action: Date Applicant/Property Owner notified of Planning Commission Action: City Council Action: _ Approved _ Disapproved Date of Action: Date Applicant/Property Owner notified of City Council Action: ~ ZSo-e- . }10 Çç:~\I\M _ <, , . 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I Attachment: Yes or No I REQUEST FOR COUNCIL AC~ION 8 - Brandon Kappes - Interim Use Permit DATE: November 20,2003 Planning ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM Interim Use Permit - Approve an Interim Use Permit to Brandon Kappes allowing an Owner Occupied Rental Unit in a Rl Zoning District. The Interim Use Permit will be limited to one tenant until the property owner can provide additional parking. PREVIOUS ACTION The Planning Commission conducted a Public Hearing on October 6 2003 at which time those present . objected to a rental unit in the neighborhood. The Planning Commission reviewed the parking in relation to the requirements of the Ordinance and determined that if the unit were to be occupied by two person, the parking area would need to be reconfigured. The parking is along the front of the property and the ingress/egress was located on the north end, making the parking on the south not practical. - The Planning Commission requested that Mr. Kappes reconfigure the parking and bring the information back to the Planning Commission. Kappes brought information back to the Planning Commission on November 10, 2003 and after considerable discussion the Planning Commission concurred that the parking presented would not satisfy the requirements for a two bedroom house. Kappes was willing to reduce the maximum occupancy to one tenant with the understanding that if he changed his parking and provided five parking spaces he could increase the occupancy one, allowing for two tenants. RECOMMENDED BOARD ACTION Accept the findings of the Planning Commission and issue an Interim Use Permit to Brandon Kappes allowing a rental unit in an R1 Zoning District with a maximum density of one tenant. COMMENTS/RECOMMENDATIONS , The recommendation to issue the Interim Use Permit was passed by a vote of 6-1. As the decision was not unanimous the item is not placed on the consent agenda. - - Resolution of finding . The request of Brandon Kappes for an Interim Use Permit request came before the Planning Commission at a public hearing held on October 6, 2003. The Public Hearing was closed and the Planning Commission tabled action until November 10, 2003 so that additional information could be provided. The purpose of the hearing was to consider issuance of an Interim Use Permit to allow an owner occupied rental unit in a R1 Zoning District. The property is legally described as The Southerly 17.4 feet of Lot 2 and the Northerly 30.2 feet of Lot 3, in Block 1 Loso's Subdivision of Block 2 of Loso's First Addition, according to the plat and survey thereof on file and of record in the Offìce of the County Recorder in and for the County of Stearns and State of Minnesota located at 32 - 2nd Avenue SE. St. Joseph Code of Ordinances 52.27. subd 5 allows for an Interim Use permit as follows: Residential rental provided the unit is owner occupied and provided the room (s) rented does not contain separate kitchen facilities and is not intended for use as an independent residence. For purposes of establishing if the property is owner occupied, the owner must be a natural person and the owner occupying the property as his or her principal residence and must own a fifty percent (50%) or greater interest in the property. The request for Interim Use has been submitted by Brandon Kappes- 32 _151 Avenue SE St. Joseph MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the . following findings: The proposed use is consistent with the standards for granting an Interim Use Permit, St. Joseph Code of Ordinances 52.07.04 Therefore, based on the above findings, the Planning Commission makes the following recommendation: Approval of the Interim Use Permit to allow an owner occupied rental unit in a R1 Zoning District with the following contingencies: 1. The rental license in non-transferable and if the property is sold or the ownership changes so that the aforementioned no longer owns a 50% or greater interest in the property the Interim Use Permit is null and void. 2. Based on the parking plan submitted, the rental license shall restrict the number of tenants to one (1). If the property owner increases the off street parking, a new plan must be submitted to the Planning Commission and they will reconsider the maximum occupancy. 3. Approval of the Rental Housing Inspector 4. The Planning Commission will review the license annually and revoke the license if the property is in violation of the St. Joseph Code of Ordinances. The motion passed unanimously. ATTEST Gary Utsch, Chair - Judy Weyrens, Administrator - I '>'. 'ló '-~_ o)'! , , . ' ", " I , HOUSIN'G, MAINTENANCE-AND OCCUPANCY CODE ."', ORDINANCE NO. 55, I CITY OF ST. JOSEP,H, MINNESOTA I ,Address: '[.,¥'. ! Addition: , Owner: R f?4 Address; 2.7/ - /) r'...ye?j Manager: Address: ' ' ' , , ì Type of Structure: Single Family "Multiple Apartment ' ¡ '. , , To the owner, lessee, agent or occupånt of the above described premises, -pursuant to the: .,' ;, 1 . . authòrity vested in me by St. Joseph Code of Ordinances No. 55.. you arid. each of you upon.' . ; '. > whom. this ord~r shall be served are hereby ordered within ' . "days to ,make the' ! '< . followIng repaIrs. '¿, , .: .. . ::. ,I " l1()"D' ?:.. ¡:::: (""J n'r.J7JFr-:-<. r '1) 'f" ,'7 (.¡',/ÇI1 /<1 . > . I l f r-'. ~ <.....,... f ~ ~ -- - -- '"../.< I ì ,-. (. - _' . . . \ , ,I , " -IJ'.;f) r;:;;, J 'C/!J .R !?::r~,->~I I 'M~,." ~)./ß>('LT<·· 0 "-=-'7 ,-r f:o~ ,¡ . . _ <' I I~~..",..... 'f .' i < . I ;l" I'.' ./ -. - ." . ." _ " _ - . I , /jDu '·tr ,'l-¿L- 'C'X',fT/7 cfJEJ· 1/1/( c~ ,. .' .. ' : ".n. Á /' ",-,1'1 -:-: '~'f' <... I\)o/- ¡:::-/',tfJ/<//-~{/)4 -,..;-.,', , f ,.¿oJ 7 '":::>c. .~.' ....... I' ~ ( " . - ,. " ., ''"- - ' .' . F,' '0 rR " .' f>FY)/(f"1r>"m;ß' LT· 'Ð I ,r=y-¡-/c {;>.¡^ 1=' I"'::J . , , n ,.¡ '.' -~} 'Ç ^ ('<:, 'h )'- ,~Ð l f {-:;' I f...l;:;.o¡::::::' :' t,,¿/t./ AJL.~S. <; fM ó R F ;).!4!Ú (:,6 7.0 !9-,'~, " " tJ f2.-..r j ~ '--"'" ¡:::- ¡:::- ¡:::::::---.. ' , . , " " .----. " /' , ,i' -: I J. , -ß;:=;oRò(') fl} "I'D Jlyj ¡= ~ . ' h ,'/v/.... . 'I t F 1?~,fI\.I ¡- '(') "¡:::: , AI oV Ç-¡¡6..E a R " : '-:::-y_ : ' < 7 ,. LI CJ '" '-I .0, '. , " . ........~ ¡t.' (URßLUï"'.J/~ ..' . - . . ..4(. : '. . c . ..:' '. .- " .". . :". ". ',fiairú~e to cómplý;with this órder:may,be groundsfÓr. imposition of a fine up·to $1;000 and/or '~suspènsiõn orrevo~tionofyour rentåLlicèÌ1se.bythe 51. Joseph.CîtyCoÜncil, ' ",' '. .' , , . Dated this' 'day of ," " " 2000 ' , . " . . , , . ." . J--. .' c, ",' '. /J~.. ",'... ""'>1/' " ',,: .' ,.' , RE-INSPECTION' DATE . ;,¥;7! ?~, ',I) ','P ff~': ,~ ,,::"_:ö>, , ", ' Sf-Joseph Rental Ho..t1S11"!9 Inspector' \, ,COMpLlANCEDATE. 320-363-.7~Ø'1 ' ./.... . , " .~,-, ',' , . ',>\- . -'". ., .\. ,\ ~l ,. " . ... . '. ..... ! ity of St. Joseph www.cityofstjoseph.com . ,25 College Avenue North City of St. Joseph PO Box 668, Public Hearing St. Joseph. MN 56374 - ,(320) 363-7201 ,Fax: (320) 363-0342 The Planning Commission for the City of St. Joseph will conduct a public hearing on Monday, October 6, 2003 at 7:05 PM in the S1. Joseph City Hall. The purpose of the AD~lINlSTRATOR hearing is to consider an Interim Use Permit to allow an owner occupied rental unit in an R- rudy Weyrens 1, Single Family Zoning District. The property is located at 32 - 1 sf Avenue SE and is legally described as: MAYOR The Southerly 17.4 feet of Lot 2 and the Northerly 30.2 feet of Lot 3, in Block 1 :Larry J. Hosch Loso's Subdivision of Block 2 of Loso's First Addition COUNCILORS S1. Joseph Code of Ordinances 52.27, subd 5 allows for an Interim Use permit as follows: ;Alan Rassier Residential rental provided the unit is owner occupied and provided the room (s) rented 'Ross Rieke does not contain separate kitchen facilities and is not intended for use as an independent Gary Utsch residence. For purposes of establishing if the property is owner occupied, the owner must Dale Wick ' be a natural person and the owner occupying the property as his or her principal residence and must own- a fifty percent (50%) or greater interest in the property. The request for Interim Use has been submitted by Brandon Kappes, 32 - 1st Avenue SE. I . Judy Weyrens Administrator Publish: September 26, 2003 Note: State Law requires mailed notice to all property owners within 350 feet of a variance, special use, interim use or rezoning request. - . Resolution of finding The request of Michael Bader for an Interim Use Permit request came before the Planning Commission at a public hearing held on October 6, 200. The purpose of the hearing was to consider issuance of an Interim Use Permit to allow an owner occupied rental unit in a R1 Zoning District. The property is legally described as The Southerly 17.4 feet of Lot 2 and the Northerly 30.2 feet of Lot 3, in Block 1 Loso's Subdivision of Block 2 of Loso's First Addition Lot Thirteen, Park Terrace, according to the plat and survey thereof on file and of record in the Office of the County Recorder in and for the County of Stearns and State of Minnesota located at 32 - 2nd Avenue SE. St. Joseph Code of Ordinances 52.27. subd 5 allows for an Interim Use permit as follows: Residential rental provided the unit is owner occupied and provided the room (s) rented does not contain separate kitchen facilities and is not intended for use as an independent residence. For purposes of establishing if the property is owner occupied, the owner must be a natural person and the owner occupying the property as his or her principal residence and must own a fifty percent (50%) or greater interest in the property. The request for Interim Use has been submitted by Brandon Kappes- 32 - 2nd Avenue SE S1. Joseph MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan ~nd Ordinances of the City of St. Joseph, the Planning Commission makes the following findings: . The proposed use is consistent with the standards for granting an Interim Use Permit, St. Joseph Code of Ordinances 52.07.04 Therefore, based on the above findings, the Planning Commission makes the following recommendation: Approval of the Interim Use Permit to allow an owner occupied rental unit in a R1 Zoning District with the foil ow~1J.f\ conti n gen cies: ! \ 1 . \ The rental license in non-transferable and if the property is sold or the ownership changes so \that the aforementioned no longer owns a 50% or greater interest in the property the Interim ! \Use Permit is null and void. ( 2. Approval of the Rental Housing Inspector _ \ 3. ¡¡-he Planning Commission will review the license annually and revoke the license ifthe \ property is in violation of the St. Joseph Code of Ordinances. \ 4. trhe City Office will place a notice in the St. Joseph Newsleader when the owner occupied , \\ / rentallice~se~ are reviewed and will acqept pu~lic com~ents. 'ç.~ý 'f:l1.a. c.-- \,þ, 'tth~ V)'\o.. '1(\ VV\U/Y\.- ~Á/~óV\-CU\ IS. Ó\t'IX &c:W.v ~ "Y'\.- The mot¡.e.{¡ passed unanimously. . '\t1.-€ GY1.YYt¿¡/.Ju~c.P<::;'~ éR. tftÝ-l/'--- ~lvt/'.--¿1 - J-S". rp-iòV'deJ ' ATTEST Gary Utsch, Chair Judy Weyrens, Administrator - . 10/13/03 Parking Plan for: 32 SE 1 st Avenue, St. Joseph, l\1N 56374 When the property was first inspected, I assumed I needed one bedroom per renter. So my plan was to turn the spare room upstairs into a 3rd bedroom. After the planning meeting on Monday, October 6th I found out that, because of the size of the master bedroom (over 140 square feet), parking space would need to accommodate 5 people (even though there will be only 3 people living in the house). So, I had the inspector come out again and we went over the parking, situation. In discussing the situation with him, he said that it was permissible to put 2 people in,the same bedroom. Also, I mentioned . to him that the house was listed as a 2 bedroom house when I purchased it (see attached description). So, he said that the present parking pad (20'x40') is sufficient to accommodate the required parking spots. Brandon M. Kappes (320) 271-0092 - J ; ¡ J._ __ ' ~~ , ~ '-~-"'~--'-""-~"~i ---+- '; ',~.......- . ~:_= .. '~', ~'.."-~~ ! ' :,--; ¡.... , · ~~, " .. t- ,I I.... ~ ~_.. , .... . . .,~~. . .- --- ...., 'd. ~~~... . __ L~ : ~,C,,__ . ~ .-' ':_.... i .~.~-~- rf'o ,-.. ",-- . ~: ..... c~_~+~, T-:-._~., .'..., . : - . -.., ~~---, , ,-.., , , ~ .- -----, .=',. -. . -~. . -'~. '--+--~- . . ..... ~~.. .. ,~u ~. ~... - ~ ,... '_~'! ..l,....--.~.:. _ ~~. ' r-.,..~, .~ _, . .. L ~ ~~ ..~ ~. n ' '..=... ''': '... .... . ~ _ ,.~,~ . ..~~ ~:r--'~ c-- . .J; '..I..;, .... . ~.~ .~ ~.~.... ..~.. :.(~-'--'--:="~"¡~§~ -i,m"- ;" , --'.- '--~...... ~"._-'- "...,....'", <::'," ü \! ___\__, , ...~ ~v -"" . "" '. 7\, ' ~ ,~" . Ç: " ,..... , , "...~. <:".) , .... _:. \~a'T',;,;,'f~'~ ___ \.;.;; ':' .... "" ~"';J-. . ~:~. -"", ....' . -Q ~. -. _ ······+·\.T ...~. ---+---- 1... · ,.." "+- ">-'. ". 'f \ .,... ¡ ", ,- .--- ,; ..".,.." ",.. . ~.~..~~ ...~.~ ~. ~..... r-;. ·.,!.-,¥x, .:-, " -:, '" ..~ ~.'~:' :¿.0,' ~ · , t:;/j'-' '~~.~~\. V;'6 ' \"":C-;';-"l2Js;' "l~~ . . : Ð ~ '~+~---T T ¡:, ~. . ~.' ~.. c \ ~. . '--, '. " (fì., ~"'" - '.~.,",,~~ . . , , . ~, . . ',-~ ^ I ~ ''''. " (). ,~~. W ',..- ~-. ..;.---.,-".-., " I -'i-r....:._,..- '6," , _<1'\, .. -- .. '.. ~ "'---' ......; .. '-~, - , .- 'V;-o' ~, ð ' -..- ;. " .. ! r . _ ~. . ;;). __ j .- ~ ~ ' .' ,:, ~...,'" ., ' . I 0- . , . - - . ' . .. " . , . ~ " , - . -.- ! , W': ¡. . , , , ' .... f -- "; ,~..¡ j'l + "-- ~., ~+A... i' . , __1__," f. ð· ...--;-- i- " -'. , .~ I ' '--""1" I _ L_ I---+- . __! . . ' . ~, . /'\~"-""~I"": . : ___:_, .. ~_; ,_ ! ; - .. ,."v' :v ~.. '_~___'. -.. - . -, ,_.. ~ ...- ~ '-, -~.,.,., ...'.. ·d' . -j.- -: --- '-----:. ._ ~. ~. n _. d_' " ", ... -~ - ~..~. - '~.~~ ~ ''', -- , - ~ .., ..... - '....' .. ,--, ,..,..-";' ,_..,- , ~~/ . - ( \.. o 'x; Y>~u 0 \Ç) \ I . /' , . ~ I\¡Ilt rt, \'v' 0 :-tJ ~ 'lI~ ;I' ,~ ~Q~ II v~ ~ 40\ ~ ~ V5 ~ ~ 9- ¡JJqJfj. (þ'x.. 2. 6 \ \..5' ~ 1.,\ ;- ~W\ "---.:;, {j..' . . ~ 11\ . I Attachment: Yes or No I REQUEST FOR COUNCIL ACTION DATE: November 20,2003 Engineering Joe Bettendorf ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM North Bypass PREVIOUS ACTION Submittal to APO for inclusion in federal funding program. . RECOMMENDED BOARD ACTION Add to Capital Improvement Program. FISCAL IMP ACT None COMMENTS/RECOMMENDATIONS Last year we submitted the North Corridor and the South Corridor (Field Street) studies for federal funding. The South Corridor was approved and we are moving forward with the Project Memorandum. The North Corridor was not approved. The APO is developing a priority list for corridor studies and we have been asked if the North Corridor is in the 5-year Capital Improvement Plan (CIP). I would like to reply that it is in our 5-year CIP. Strictly speaking, we have prioritized our CIP, but have not made it a 5-year program. We have used the priority list to take projects on as funding became available. The staff is planning to review issues that need attention in January, and updating the CIP in terms of projects and format is on the list. The Storm Water Management Plan currently underway will dovetail into this with proposed drainage - improvements. For the time being, we simply need to add the North Corridor Study to the list and give it a year for completion. . . "Scott Mareck" To: "Betendorf, Joe" <jbettendorf@sehinc.com>, "Williamson, Sid" . . <mareck@stcloudapo. <swilliamson@bonestroo.com>, "Wotzka, Terry" >.. . ~, org> <twotzka@sehinc.com>, "Kozel, Bob" <bkozel@co.benton.mn.us>, " "Anderson, Mitch" <mitch.anderson@co.stearns.mn.us>. "Foss, Steve" 11/13/200301:25 PM <stoss@ci.stcloud.mn.us> cc: Subject: Corridor Study Prioritization Joe, Sid, Terry, Bob, Mitch and Steve: You may recall that at the November TAC meeting, the TAC asked APO staff to develop a revised prioritization for Metro Area corridor studies that considered if the study was for right-of-way preservation, and also if the project was in a city/county 5 year CIP. Can you tell me if the foIJowing projects are in your respective 5 year CIPs? St. Cloud - Steve Foss > 24th Street South New Alignment > 40th Street South New Alignment > 33rd Street SouthrrH 15 Interchange Stearns County - Mitch Anderson > CSAH 4/CR 120 Intersection Improvements > St. Joseph West Bypass . > 33rd Street SouthrrH 15 Interchange > SarteIJ 2nd Street Extension West to CR 133 Benton Countv - Bob Kozel > CSAH 29/CSAH8 Improvements (TH 10 to Airport) > Benton Drive Extension East of TH 10 Waite Park - Terrv Wotzka > 33rd Street SouthrrH 15 Interchange > 10th Avenue Extension to 33rd Street South > 28th Avenue Extension to CR 137 Sauk Rapids - Terrv Wotzka > Benton Drive Extension East of TH 10 Sartell - Sid Williamson > East/West Collector from Pinecone Road to CSAH 4 > 2nd Street Extension West to CR 133 > 50th Avenue Realignment to CR 134 St. Joseph - Joe Bettendorf > EastiWest New Alignment North of St. Joseph Thank you for your help. - I ~i N~.~aB·~~$=~~~!i!=ii~~I~. ~ ..M&~A~..~..~~.g B g ~ , : ~i¡¡¡itl!¡':,;. ,,: '! I ~ ! ~ ' · . 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N \ \ q¡ ~ ~ '~ .J / ~w \ ~ '" ~ ~ 1\ OJ J I þP (/-J _ L '-^--t.. =1r ~ ~ :::: I A!Ø" ""'- cD ¡¡; 'Î I I . \ ~ J ., '"""~^' r ~~ ~ ~ ~5eJ 1200 25th Avenue South, P.O. Box 1717, St. Cloud, MN 56302-1717 320.229.4300 320.229.4301 FAX architecture . engineering . environmental . transportation · November, 14, 2003 RE: St. Joseph, Minnesota ~top Signs at Dale and 12th SEH No. A-STJOE 0208.00 14 Judy Weyrens Clerk/City Administrator City of St. Joseph 25 College Avenue N P.O. Box 668 St. Joseph, MN 56374-0668 Dear Judy: I have looked at the stop sign arrangement at the intersection of 1 ih A venue SE and East Dale Street. Currently, the traffic on 12th Avenue stops, and Dale Street is a through street from 9th A venue SE to 16th Avenue SE. Residents have expressed concern that speeds are increasing on Dale Street, especially as traffic approaches the hill between lih Avenue SE and Pond View Lane. There is a similar stop sign arrangement at East Baker Street. The traffic on 12th Avenue SE stops, and Baker Street is a through street from ih A venue SE to 16th Avenue SE. · When Pond View Ridge was originally platted, the intent was to make lih Avenue SE the through street. The Developer platted 80 feet of right-of-way and provided a wider street for this purpose. As growth in the area continued, East Baker Street developed more quickly as a through street, and stop signs were placed accordingly. This pattern was repeated at Dale Street. With the,exception of concerns raised recently about Dale Street, we have had few complaints regarding speed in the area. The final designation of 12th A venue SE is still up in the air pending a resolution of the Jade Road connection. Residents are used to the stop sign configuration as it is. For these reasons, I recommend that we leave the stop signs as they are currently configured. Adding stop signs to control speed frustrates a smooth flow of traffic and generally creates other problems. Drivers often ignore them and run the intersection, and speeds go up between intersections as drivers try to make up for lost time. Irecomn'lend that the City consider inCreased enforcement activity on Dale Street for a while if resources permit, and that we revisit this issue when the Jade Road connection is resolved~ Sincerely, ~e:endOrf' PE City Engineèr · cah x:\s.\stjoe\020800\corr\ttaffic.doc Short Elliott Hendrickson Inc. . Your Trusted Resource . Equal Opportunity Employer · I AtlaChment$ or No I - REQUEST FOR COUNCIL ACTION Utility Franchise Fee DATE: November 20, 2003 City Attornev ORIGINATING DEPARTMENT DEPARTMENT APPROVAL AGENDA ITEM þ City Attorney Reports - Franchise Fees PREVIOUS ACTION During budget discussion the City Council discussed the implementation of a utility franchise fee. The fee was established at 2% for all gas and electric customers in the City of St. Joseph. The City Attorney was authorized to prepare the necessary documents to implement the franchise fee. · RECOMMENDED BOARD ACTION - Two actions are required: Authorize the Mayor and Administrator to execute a revised Franchise Ordinance authorizing the implement a franchise fee. The second action required by the Council is a motion authorizing the Mayor and Administrator to execute an Ordinance imposing a franchise fee equal to 2% of the gross earnings of gas and electric revenues for all classes of customers. FISCAL IMPACT Approximately $ 42,000 annually in revenue. COMMENTS/RECOMMENDATIONS The existing franchise agreement between the City and Xce1/Stearns Electric did not allow for the implementation of a franchise fee, the franchise agreement needed to amended first. As you can see both utility companies have been notified of the fee and there is a 60 day waiting period before the collection of the fee can begin. The Ordinance amendment will be published the following Friday to finish the · process. V Rajkowski · 11 Seventh Avenue North ~~~~TA~~~ lid. P.O. Box 1433 St. Cloud, MN 56302-1433 November 13,2003 320,251,1055 - VIA EMAIL AND US MAIL- Toll Feee 800,445,9617 Ms. JudyWeyrens Fax 320-251,5896 St. Joseph Administrator/Clerk 25 North College Avenue St. Joseph, MN 56374 rajhan@rajhan.com \',^'~fw.rajhan.com Re: Franchise Fees Our File No. 22641 Dear Judy: Enclosed, please find the revised versions of the Electric Franchise Ordinance, Gas Franchise Ordinance and Franchise Fee Agreements for Xcel Energy and Steams County Electric. Attached to these documents are letters to David Gruenes and Karen Young · regarding the revisions. - I spoke with David Gruenes on November 11 th regarding the revisions. He was concerned that an 8% franchise fee would be imposed, but I assured him that although the City has authority to charge 8%, it will only charge a 2% fee. The ordinances and fee Frank J. Rajkowski .. agreements are clear on this point. I have left a message with Karen Young, but she has Gordon H. Hansmeier not retumed my call. However, I assume the ordinances and fee agreements should be to her satisfaction, as they were originally proposed by Xcel. Frederick L. Grunke Thomas G. Jovanovich· The ordinances are complete. However, I do need you to fill in the applicable City Paul Å. Rajko\vski· Ordinance number under the rranchise fee agreement. If you have any questions, please do not hesitate to contact me. Kevin F. Gray William J. Cashman Sincerely, Richard W. Sobalvarro ~~H;æ;~TD. Susan M. Dege LeAnne D. Bartishofski By Sarah L. Smith Laurel J. Pugh Troy A. Poetz LJP/lbaz · Joseph M. Bromeland Enclosures Gregory J. Haupert Frank 1. Rajko'Nski and Richard vv. Sobai\'-arro are admitted to practice i'1I'-.'orth Dakotã, Gordon H. Harrsrnefer in t.'orth Da,lwta and V/iscons'n. Paul A Rajkm'/ski and Sarah L Smith in V/isconsin" and V~fi!fiam J, Cashman in 50uth Da.<.ota. .~,~ Tir ~r of -' IT1pri""n' ...."rd o.l Tri=>1 t.'ti"";;1V'~ .rl"-!ifi"rj' f)R t-~~'I1r-! . VRajkOWSki 11 Seventh Avenue North '~~~~~~~~~ Ltd. P.o. Box 1433 St. Cloud, MN 56302-1433 November 5, 2003 320,251-1055 Toll Free BOO-445,9617 Xcel Energy Attn: Karen Young Fax 320,251-5896 P.O. Box 808 St. Cloud, MN 56302 rajhan@rajhan,com Re: City of St. Joe - Franchise Agreements www.rajhan.com File No. 22641 Dear Ms. Young: The City of St. Joseph has revoked the proposed franchise ordinance sent to you on October 27,2003. The City has decided to adopt the original franchise ordinance proposed by Xcel Energy. . Pursuant to Minnesota Statute § 216B.36, the City Council maintains its two percent (2%) franchise fee on all classes of customers. The Franchise Fee Agreement sent on October 27,2003, remains unchang~d and is similar to the original Fee Agreement proposed by Xcel. However, instead of referring to sections in the Franchise Ordinance, the City's version recites the language used in each referenced section. The City's Frank J. Rajkowski" version also references the two percent franchise fee. Gordon H. Hansmeier Enclosed please find the City's revised Electric and Gas Franchise Ordinances and Frederick L. Grunke Electric and Gas Franchise Fee Agreements. If you have any questions regarding this Thomas G. Jovanovich' matter, please do not hesitate to contact me. Paul A. Rajkowski' Sincerely, Kevin F. Gray William J. Cashman RAJKOWSKI H~rR LTD. Richard W. Sobalvarro fLV¡J Susan M. Dege By ¿,. /,1/ , , LeAnne D. Bartishofski Thomas G. J vanovich Sarah L. Smith TGJ/jrk Troy A. Poetz .h M. Brameland Enclosure Gregory J. Haupert Frank ). Rajkowski and Richard w:. Soba/varro are admitted to practice in North Dakota, Gordon H. Hansmeier in North Dakota and Wisconsin Paul A. Rajkowski and Sarah L. Smith in Wisconsin. and William). Cashman in South Dakota. -Member of American Board of Trial Advocates_ -Qualified AOR Neutral. GAS FRANCIllSE ORDINANCE NO. · CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/ A XŒL ENERGY, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCf, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF ST. JOSEPH, MINNESOTA, A GAS DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY EQUIPMENT AND APPURTENAi'\JCES FOR THE FURNISHING OF GAS ENERGY TO THE CITY AND ITS INHABITANTS AND OTHERS AND TRANS:MITTING GAS ENERGY INTO AND THROUGH THE CITY AND TO USE THE PUBLIC \VAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STEARNS COUNTY, :MINNESOTA, ORDAINS: SECTION 1. Definitions Subd. 1. "City" means the Cityof St. Joseph, ColUltyof Steams, State of Minnesota. Subd. 2. "City Ltility System" means the facilities used for providing non-energy related public · utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. - Subd.3. "Company" means Northern States Power Company, a Minnesota cOlporation, d/b/ a Xce1 Energy; its successors and assigns. Subd. 4. "Notice" means a writing served by any party or parties on any other party or patties. Notice to Company shall be mailed to the General ColillSel, Legal Services, 800 Nicollet Mall, Suite 3000, Minneapolis, NfN 55402. Notice to City shall be mailed to the City Clerk, P.o. Box 668, St. Joseph, NfN 56374-0668. Either party may change its respective address for the pwpose of this Ordinance bywritten notice to the other party. Subd. 5. "Public GrolUld" means land owned by the City for park, open space or similar pwpose, which is held for use in cornmon by the public. Subd. 6. "Public Way" means any street, alley, walkway or other public right-of-way within the Cit)~ · 1 . SECtION 2. Grant of Francruse City hereby grants Company, for a period of twenty (20) years from the date hereof, the right to tranSmit and furnish gas energy for light, heat, power and other pmposes for public and private use within and through the limits of City as its bOlUldaries now exist or as they may be extended in the future. For, these pmposes, Company may construct, operate, repair and maintain gas distribution system and gas tranSmission lines, including poles, lines, fixtures, and any other necessary appurtenances in, on, over, lUlder and across the Public Ways and Public GrolUlds of City. Company may do all reasonable things necessary or customary to accomplish these pmposes, subject, however, to the ftuther prowions of this francruse agreement. SECfION 3. Restrictions Subd. 1. Company faciliries included in such gas distribution system, transmission lines and appUltenances thereto, shall be located and constructed so as not to interlere with the safety and convenience of ordinary travel along and over said Public Ways and so as not to disrupt nonnal operation of any Gty Uility System previously installed therein. Company's construction, operation, repair, maintenance and location of such facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the Gtyto the extent not inconsistent with the tenns of this francruse agreement. Company may abandon its lUldergrolUld gas facilities in place, provided, at the eitys request, Company will remove abandoned metal or concrete encased conduit interlering with a City improvement project, but only to the extent such conduit is lUlcovered by excavation as part of the City improvement project. . Subd. 2. Company shall not construct, any new installations within or upon any Public GrolUlds without receiving the prior written consent of an authorized representative of City for each such installation. Subd. 3. In constructing, removing, replacing, repairing, or maintaining said poles, lines, fixtures and appurtenances, Company shall, in all cases, place the Public Ways in, on, lUlder or across vvhich the same are located in as good condition as they were prior to said operation and maintain any restored paved sutface in such condition for two years thereafter. City hereby waives any requirement for Company to post a construction perlonnance bond, cenificate of insurance, letter of credit or any other fmID of security or assurance that may be required, lUlder a separate existing or future ordinance of the Gty, of a person or entity obtaining the eitys permission to install or maintain facilities in a Public Way. SECfION 4. Tree Trimming Companyis also granted the permission and authority to trim all shrubs, trees, including roots, in the Public Ways and Public GrolUlds of City interlering with the proper construction, operation, repair and maintenance of any poles, lines, fixtures or appUltenances installed in pU1'Suance of the authority hereby granted, provided that Company shall save City hannless from any liability in the premises. SECfION 5. Service and Rates . The service to be provided and the rates to be charged by Company for gas service in City are 2 subject to the jurisdiction of the Public UiIities Commission of this State or its successor agency. · SECTION 6. Relocating Subd. 1. Whenever City at its cost shall grade, regrade or change the line of any Public Way; or construct or reconstruct any City Utility S~tem therein and shall, in the proper exercise of its police power, and with due regard to seasonable working conditions, when necessary, and after approval of its final plans have been obtained, order Company to relocate pennanently its lines, services and other property located in said Public Way materially interlering with the Citys planned construction, Company shall relocate its facilities at its own expense. City shall give Company reasonable notice of pJans to grade, regrade or change the line of any Public Way or to construct or reconstruct any City Uility S~tem therein. However, after Company has so relocated, if a subsequent relocation or relocations shall be ordered v.rithin five (5) years from and after first relocation, City shall reÏmb1ille Company for such non-betterment relocation expense which Company may incur on a time and material basis; provided, if subsequent relocations are requested because Company facilities materially and necessarily interlere with the extension of a City Ui1ity S~tem to previously unserved areas, Company may be required to relocate at its own expense. Subd. 2. Nothing contained in this franchise shall require Company to relocate, remove, replace or reconstruct at its own expense its facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City LJtilityS~tem or other City improvement. Subd.3. Any relocation, removal, or rearrangement of any Company facilities made necessary · because of the extension into or through City of a federally· aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.46 as supplemented or amended; and further, it is expressly understood that the right herein granted to Company is a valuable property right and City shall not order Company to remove or relocate its facilities without compensation when a Public Way is vacated, improved or re-aligned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non- betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company. Subd. 4. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applic;ab1e Public Way or Public Ground "WaS established, or Companys rights under state or county penmt. · 3 · SECTION 7. Indemnification Subd. 1. Company shall indemnify, keep and hold the City free and hannless from any and all liability on acc01U1t of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of pennits, or the operation of the gas facilities located in the Public Ways and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work The City shall not be indemnified if the injury or damage results from the performance in a propermanner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's detennination. Subd. 2. In the event a suit is brought against the Gty under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have' control of such litigation, but Company may not settle such litigation without the consent of the Gty, which consent shall not be tm.reasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City, and Company, in defending any action on behalf of the City shall be entitled to assert in any action every defense or immunity that the City could · assert in its own behalf. SECTION 8. Vacation of Public Ways The City shall give Company at least two (2) weeks prior written notice of a proposed vacation of a Public Way. Except where required solely for a City improvement project, the vacation of any Public Way, after the installation of gas facilities, shall not operate to deprive Company of its rights to operate and maintain such gas facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall the City be liable to pay damages to Company for failure to specifically preserve a right-of-way, under Minnesota Statutes, Section 160.29. SECfION 9. Franchise Fee Subd. 1. Fee Schedule. During the te1ll1 of the franchise hereby granted, and in lieu of any pe11I1Ít or other fees being imposed on Company, the City may impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not to exceed the following amounts. · 4 Class Fee Per Month . Residential 8% SmC&1 - Non-Dem 8% Sm C &1 - Demand 8% large C&1 8% Public Street Ltg 8% Muni Pwnping -N/D 8% M1.U1iPumping - Dem 8% Subd. 2. Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City ColU1cil, -which ordinance shall not be adopted lU1ti1 at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective lU1ti1 at least 60 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail Section 11.2 shall constitute the sole remedy for solving disputes between Company and the City in regard to the intetpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance v.rill commence lU1ti1 this Ordinance is effective. A separate ordinance -which imposes a lesser franchise fee on the residential class of customers than the maximum amolUlt set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amolU1t per class as the reduction represented by the lesser fee on the residential class. Subd.3. Terms Defined For the purpose of this Section 9, the following definitions apply: . 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or detennined in Companys gas tariffs on file with the Commission. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its gas tariffs after the effective date of this franchise agreement. Subd.4. Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amolU1t collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for gas service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for gas service in excess of the amolU1ts specificallypennitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amolU1t equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Companys applicable rates for electric . 5 . gas service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to aCCOl.Ultfor uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information -which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was detennined, including information showing any adjustments to the total surcharge billed in the period for -which the payment is being made to account for anyuncollectibles, refunds or error corrections. Subd. 5. Equivalent Fee Requirement. ,The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more, often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee pmposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the pmpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. . SECTION 10. Written Acceptance Company shall, if it accepts this Ordinance and the rights and obligations hereby granted, file a - written acceptance of the rights hereby granted with the City Oerk within ninety (60) days after the final passage and any required publication of this Ordinance. SECfION 11. General Provisions Subd. 1. E very section, provision, or part of this Ordinance is declared separate from every other section, provision or part; and if any section, provision or part shall be held invalid, it shall not affect any other section, provision or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. Subd. 2. If either party asserts that the other party is in default in the perfonnance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within thirty (30) days after first meeting with the selected mediator, either party may commence an action in District Coutt to intetpret and enforce this franchise or for such other relief as may be pennitted by law or equity for breach of contract, or either party may . take any other action pennitted by law. 6 Subd.3. This Ordinance constitutes a franchise agreement between the City and Company as · the only parties and no provlsion of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of anyone or more of the tenns hereof, or otherwise give rise to any cause of action in anyperson not a party hereto. Subd.4. Any change in the f01ID of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company; succeed to all of the rights and obligations of the Cityprovided in this Ordinance. Subd. 5. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Company's facilities while perfonning any activity: SECTION 12. Publication Expense The expense of any publication of this franchise Ordinance required by law shall be paid by Company: SECTION 13. Effective Date This Ordinance is effective as provided by statute or charter and upon acceptance by Company as provided in Section 9. · Pass~d and approved: ,20_ Mcr;vr Anest: Gty CJe;k · 7 r; . ELECTRIC FRANŒIISE ORDINANCE NO. CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/ A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCf, OPERATE, REPAIR .AND MAINTAIN IN THE CITY OF ST. JOSEPH, MINNESOTA, AN ELECfRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY AND ITS INHABITANTS .AND OTHERS .AND TRANSMITTING ELECfRIC ENERGY INTO .AND THROUGH THE CITY.AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR sum PURPOSES. THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA, ORDAINS: SECTION 1. Definitions Subd 1. "City" means the Gtyof St. Joseph, COlUltyof Steams, State of Jv1innesota. . Subd 2. "City Utility System" means the facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, inclucling sewer and water service, but excluding facilities for providing heating, lighting or other fonns of energy. Subd 3. "Company" means Northern States Power Company, a Jv1innesota cOlporation, d/b/ a Xcel Energy, its successors and assigns. Subd 4. "Notice" means a writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to the General ColU1SeL Legal Services, 800 Nicollet Mall, S\Ùte 3000, lvfînneapolis, MN 55402. Notice to City shall be mailed to the Gtyderk, P.o. Box 668, St. Joseph, MN 56374-0668. Either party may change its respective address for the prupose of this Ordinance bywritten notice to the other party. Subd 5. "Public Gro1U1d" means land owned by the City for park, open space or similar prupose, which is held for use in common by the public. Subd 6. "Public Way" means any street, alley, walkway or other public right-of-way within the City. . 1 SECfION 2. Grant of Franchise . City hereby grants Company, for a period of twenty (20) years from the date hereof, the right to tranSmit and furnish electric energy for light, heat, power and other ptuposes for public and private use VlÎthin and through the limits of City as its boundaries now exist or as they may be extended in the future. For these ptuposes, Company may construct, operate, repair and maintain electric distribution system and electric transmission lines, including poles, lines, fixtures, and any other necessary appurtenances in, on, over, under and across the Public Ways and Public Grounds of City. Company may do all reasonable things necessary or customary to accomplish these ptuposes, subject, however, to the further provisions of this franchise agreement. SECTION 3. Restrictions Subd. 1. Company facilities included in such electric distribution system, tranSmission lines and appurtenances thereto, shall be located and constructed so as not to interfere with the safety and convenience of ordinary travel along and over said Public \'V'ay~ and so as not to disrupt no1111al operation of any City Utility S)~em previously installed therein. Company's construction, operation, repair, maintenance and location of such facilities shall be subject to permits if req1.Ùred by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the tenns of this franchise agreement. Company may abandon its underground electric facilities in place, provided, at the eitys request, Cornpanywill remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. . Subd. 2. Company shall not construct any new installations within or upon any Public Grounds VlÎthout receiving the prior written consent of an authorized representative of City for each such installation. Subd. 3. In constructing, removing, replacing, repairing, or maintaining said poles, lines, fixtures and appurtenances, Company shall, in all cases, place the Public Way~ in, on, under or across which the same are located in as good condition as they were prior to said operation and maintain any restored paved surface in such condition for two years thereafter. City hereby waives any req1.Ùrement for Company to post a construction performance bond, certificate of insurance, letter of credit or any other fOlID of security or assurance that may be required, under a separate existing or future ordinance of the Cit)~ of a person or entity obtaining the eitys permission to install or maintain facilities in a Public \'V'ay. SECTION 4. Tree Trimming Company is also granted the permission and authority to trim all shrubs, trees, including roots, in the Public \'V'ays and Public Grounds of City interfering with the proper construction, operation, repair and maintenance of any poles, lines, fixtures or appurtenances installed in pursuance of the authority hereby granted, provided that Company shall save City harmless from any liability in the premises. SECfION 5. Service and Rates The service to be provided and the rates to be charged by Company for electric service in Cit)r are . 2 . subject to the jurisdiction of the Public Utilities Commission of this State or its successor agency. SECTION 6. Relocating Subd. 1. \Xlhenever City at its cost shall grade, regrade or change the line of any Public Way, or construct or reconstruct any City Utility System therein and shall, in the proper exercise of its police power, and with due regard to seasonable working conditions, when necessary; and after approval of its final plans have been obtained, order Company to relocate permanently its lines, services and other property located in said Public Way materially interfering with the Citjs planned construction, Company shall relocate its facilities at its own expense. Cityshall give Companyreasonab1e notice of plans to grade, regrade or change the line of any Public Way or to construct or reconstruct any City Utility System therein. However, after Company has so relocated, if a subsequent relocation or relocations shall be ordered within five (5) years from and after first relocation, Gty shall reimburse Company for such non-betterment relocation expense which Company may incur on a time and material basis; provided, if subsequent relocations are requested because Company facilities materially and necessatily interfere with the extension of a Gty Utility System to previous1yunselVed areas, Company may be required to relocate at 1tS own expense. Subd. 2. Nothing contained in this franchise shall require Company to relocate, remove, replace or reconstruct at its own expense its facilities where such relocation, removal, replacernent or reconstruction is solely for the convenience of the Gty and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement. . Subd. 3. Any relocation, removal, or rearrangement of any Company facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of :M1nnesota Statutes_Section 161.46 as supplemented or amended; and further, it is expressly understood that the right herein granted to Companyis a valuable property right and Cityshall not order Company to remove or relocate its facilities without compensation when a Public Way is vacated, improved or re-aligned because of a renewal or a redevelopment pIan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non- betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company. Subd. 4. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the Gty and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Way or Public Ground was established, or Company's rights under state or county penmt. SECTION 7. Indemnification Subd. 1. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the electric facilities located . in the Public Ways and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's 3 negligence as to the issuance of pennits for, or inspection of, Company's plans or WOlk. The City shall . not be indemnified if the injury or damage results from the perlorrnance in a proper manner of acts reasonably deemed hazardous by Company, and such perlorrnance is nevertheless ordered or directed by City after notice of Company's detennination. Subd. 2. In the event a suit is brought against the City ooder circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Companyis not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation "WÏthout the consent of the City, which consent shall not be unreasonably v,lithheld. 'This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City; and Company, in defending any action on beha1f of the City shall be entitled to assert in any action every defense or immunity that the City could assert in its mvn beha1f. SECTION 8. Vacation of Public Ways The City shall give Company at least two (2) weeks prior written notice of a proposed vacation of a Public Way. Except where required solely for a City improvement project, the vacation of any Public \Vay, after the installation of electric facilities, shall not operate to deprive Company of its rights to operate and maintain such electric facilities, ootil the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall the City be liable to pay damages to Company for failure to specifically preserve a right-of-way, ooder . Minnesota Statutes, Section 160.29. SECTION 9. Franchise Fee Subd. 1. Fee Schedule. During the tenn of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company; the City may impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not to exceed the following amounts. Class Fee Per Month Residential 8% SmC&I - Non-Dem 8% Sm C &1 - Demand 8% Large C &1 8% Public Street Ltg 8% Muni Pumping - NlD 8% MuniPumping - Dem 8% Subd. 2. Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 day; after written . 4 . notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until at least 60 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. Section 11.2 shall constitute the sole remedy for solving disputes between Company and the City in regard to the intetpretation of, or enforcement of, the separate ordinance. No action bythe'Cityto implement a~separate ordinance'will corrnnence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maxmu.un amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer class1£ication is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. Subd 3. Tenns Defined For the putpose of this Section 9, the following definitions apply. 9.3.1 "Customer Class" shall referto the classes listed on the Fee Schedule and as defined or detennined in Companys electric tariffs on file with the Commission. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected 1£ a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. Subd. 4. Collection of the Fee. The franchise fee shall be payable quarterly and shall be based . on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer class1£ication in all customer billings for electric se1VÏce in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more, often than annually and no change shall require a collection from any customer for electric se1VÏce in excess of the amounts spec1£icallypermitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company 1£ Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Companys applicable rates for electric se1VÏce. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any infonnation which would indicate the amount paid by any identifiable customer or customers or any; other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was detennined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for anyuncollectibles, refunds or error corrections. Subd. 5. Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Companyunless it lawfully imposes and the Gtymonthlyor more often collects a fee or . tax of the same or greater equivalent amount on the receipts from sales of energywithin the Gty by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise 5 fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by . comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to sim11ar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. Written Acceptance Company shalL if it accepts this Ordinance and the rights and obligations hereby granted, file a written acceptance of the rights hereby granted with the City derk 'Within ninety (60) days after the final passage and any required publication of this Ordinance. SECTION 11. General Provisions Subd. 1. E very section, provision, or part of this Ordinance is declared separate from every other section, provision or part; and if any section, provision or part shall be held invalid, it shall not affect any other section, provision or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. Subd. 2. If either party asselts that the other party is in default in the perfonnance of any . obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must prompdy meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may joindy select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute \\~ thitty (30) da~ after first meeting with the selected mediator, either patty may commence an action in District Cowt to intetpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action pennitted by law. Subd. 3. This Ordinance constitutes a franchise agreement between the City and Company as the only parties and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of anyone or more of the tellllS hereof, or otherwise give rise to any cause of action in anyperson not a party hereto. Subd. 4. Any change in the fmID of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shalL without the consent of Compan)~ succeed to all of the rights and obligations of the Cityprovided in this Ordinance. Subd. 5. Nothing in this Ordinance relieves anyperson from liability arising out of the failure to exercise reasonable care to avoid damaging Company's facilities while perfonning any activity. . 6 . SECTION 12. Publication Expense The expense of any publication of this franchise Ordlnance required by Jaw shall be paid by Company. SECfION 13. Effective Date This Ordlnance is effective as provided by statute or charter and upon acceptance by Company as provided in Section 9. Passed and approved: ,20_ Mapr Attest: OtyC1erk . . 7 . ORDINANCE NO. AN ORDINANCE 11vlPLEMENTING AN ELECTRIC SERV1CE FR..ANCHISE FEE ON NORTHER..N STATES PO\X1ER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC ENERGY SERVICE \X7ITHIN THE CITY OF ST. JOSEPH THE CITY COUNCIL OF THE CITY OF ST. JOSEPH DOES ORDAIN: SECTION 1. The City of St. Joseph IVfurucipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The St. Joseph City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide electric services within the City of St. Joseph. (a) Pursuant to City Ordinance and Minn. Stat. § 216B .36, a Franchise Agreement between the City of St. Joseph and Northern States Power Company, a Ìvíinnesota corporation, d/b / a Xcd Energy, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors . and assigns, in the amount of eight percent (8%) of its gross earnings from its operations in the City of St. Joseph for all classes of customers, so long as it shall operate in the City. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power Company, a Ivfinnesota Corporation, d/b/a Xcel Energy, its successors and assigns, under its Electric franchise in the amount of two percent (2%). Subdivision 3. Payment. The franchise fee shall be payable quarterly and shall be based on the amount collected by the Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements. The Company agrees to rnake its records available for inspection by the City at reasonable times, provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. The Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information shov;ring any adjustments to the total surcharge billed in the period for "\vhich the payment is being made to account for any uncollectibles, refunds, or error corrections. Subdivision 4. Surcharge. The City recognizes that the I\linnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility . company for the cost of the fee and that Xcd Energy will surcharge its customers in the City the amount of the fee. . Subdivision 5. Record Support for Payment. Xcel Energy shall make each payment when due and, if required by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including infonnation showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds arerror corrections. Subdivision 6. Enforcement. If either party asserts that the other is in default in the performance of any obligation of this agreement, the complaining party shall notify the other party of the default and the desired remedy in writing. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution to the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of said mediator. If a mediator is not used, or if the parties are unable to resolve the dispute within thirty (30) days after meeting with the second mediator, either party may commence an action in District Court to interpret and enforce this agreement or for other such relief as may be permitted by law, equity ar breach of contract. Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to Xcel Energy by certified mail. Passed and approved: ,20_. . Mqyor Attest: City Clerk SEAL . . ORDINANCE NO. AN ORDINANCE HvfPLElvIENTING A GAS SERVICE FRANCHISE FEE ON NORTHERN STATES PO\XlER COl\tIP Al'-i"Y, A IvfINNESOTA CORPORATION, D /B/ A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS SERVICE WITHIN THE CITY OF ST. JOSEPH THE CITY COUNCIL OF THE CITY OF ST. JOSEPH DOES ORDAL.'\!: SECTION 1. The City of St. Joseph Ivfurucipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The St. Joseph City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide gas services within the City of St. Joseph. (a) Pmsuant to City Ordinance and l\1inn. Stat. § 216B.36, a Franchise Agreement between the City of St. Joseph and Northern States Power Company, a Minnesota corporation, d/b/a Xcd Energy, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota c01poration, d/b/a Xcel Energy, its successors . and assigns, in the amount of eight percent (8%) of its gross earnings from its operations in the . City of St. Joseph for all classes of customers, so long as it shall operate in the City. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, d/b / a Xcd Energy, its successors and assigns, under its Gas Franchise in the amount of two percent (2%). Subdivision 3. Payment. The franchise fee shall be payable quarterly and shall be based on the amount collected by the Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for gas service in each class. The payment shall be due the last business day of the month follmving the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements. The Company agrees to make its records available for inspection by the City at reasonable times, provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. The Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information sho\ving any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectib1es, refunds, or error corrections. Subdivision 4. Surcharge. The City recognizes that the Ivfinnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility . company for the cost of the fee and that Xcd Energy will surcharge its customers in the City the amount of the fee. . Subdivision 5. Record Support for Payment. Xcel Energy shall make each payment when due and, if required by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was detennined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Subdivision 6. Enforcement. If either party asserts that the other is in default in the performance of any obligation of this agreement, the complaining party shall notify the other party of the default and the desired remedy in writing. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution to the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of said mediator. If a mediator is not used, or if the parties are unable to resolve the dispute within thirty (30) days after meeting with the second mediator, either party may commence an action in District Court to interpret and enforce this agreement or for other such relief as may be permitted by law, equity or breach of contract. Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to Xce1 Energy by certified mail. Passed and approved: ,20_. . Mqyor Attest City Clerk SEAL . VRajkoWSki . ! 1 Seventh AvenuE North ~~~j~~~~~~':' Ltd. P.O. Box 1433 St. Cloud. f\1N 56302-1433 November 5, 2003 320,251,1055 ïoll Free 800-445,9617 Steams County Cooperative Electric Assn. Attn: Dave Gruenes Fax 320-251,5896 900 East Kraft Avenue Melrose, MN 56352 rajhan@rajhan.com Re: City of S1. Joe - Franchise Agreements l;\'v.¡v.¡.rajhan.com File No. 22641 Dear Mr. Gruenes: The City of St. Joseph has revoked the proposed franchise ordinance sent to you on October 27,2003. The City has decided to adopt the original franchise ordinance proposed by Xcel Energy. Pursuant to Mlimesota Statute § 216B.36, the City Council maintains its nvo percent . (2%) franchise fee on all classes of customers. The Franchise Fee Agreement sent on October 27,2003, remains unchanged and is similar to the original Fee Agreement proposed by Xcel. However, instead of referring to sections in the Franchise Ordinance, the City's version recites the language used in each referenced section. The City's Frank J. Rajko'.-\'ski U version also references the two percent franchise fee. Gordon H, Hansmeier Enclosed please find the City's revised Franchise Ordinance and Franchise Fee Frederick L. Grunke Agreement. If you have any questions regarding this matter, please do not hesitate to Thomas G. Jovanovich- contact me. Paul A. Rajkowski' Sincerely, Kevin F. Gray ErR LTD INil1iam J, Cashman Richard W. Sobalvarro Susan M. Dege ø -V ¡ By ¡ LeAnne D. 8artishofski Thomas Grh Sarah L. Smith TGJ/jrk ïroy A. Poetz Joseph M. Bromeland Enclosure . Gregory J. Haupert Frank J. Rajko~v'Ski and Richard V/. Sobah'arro are admitted to practice in North Dakota, Gordon H. Hammeier in North Dakota and V1Î5consin, Paul A. Raj/(mvski and 53rah L Smith in VIÙconsin, and Hlif/iam J Cashman in South Dakota. -Member of American Board of Trial Ad\'ocates. -Qualified ADR t\eutral. ELECTRIC FRANCIllSE . ORDINANCE NO. CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA AN ORDINANCE GRANTING TO STEARNS COUNTY COOPERATIVE ELECTRIC ASSOCIATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF ST. JOSEPH, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM .AND TRANSMISSION LINES, INŒ..UDING NEŒSSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISIllNG OF ELECTRIC ENERGY TO THE CITY .AND ITS INHABIT ANTS .AND OTHERS .AND TRANSMITTING ELECfRIC ENERGY INTO .AND THROUGH THE CITY AND TO USE THE PUBLIC WAYS .AND PUBLIC GROUNDS OF THE CITY FOR sum PURPOSES. THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA, ORDAINS: SECTION 1. Definitions Subd.1. "City" means the Gtyof St. Joseph, Coootyof Steams, State of Minnesota. Subd. 2. "City Uility System" means the facilities used for providing non-energy related public . utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other fonns of energy. Subd. 3. "Company" means Steams Coooty Cooperative Electric' Association, its successors and assigns. Subd. 4. "Notice" means a writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to the General Counse~ Legal Services, 800 Nicollet Mall, Suite 3000, Minneapolis, MN 55402. Notice to City shall be mailed to the Gty Oerk, P.o. Box 668, St. Joseph, MN 56374-0668. Either party may change its respective address for the ptupose of this Ordinance bywritten notice to the other party. Subd. 5. "Public Groood" means land owned by the City for park, open space or similar putpose, which is held for use in common by the public. Subd. 6. "Public Way" means any street, alley, walkway or other public right-of-way within the City. . 1 SECfION 2. Grant of Franchise City hereby grants Company, for a period of twenty (20) years from the date hereof, the right to . transmit and :fum1sh electric energy for light, heat, power and other putp os es for public and private use within and through the limits of City as its bOlUldaries now exist or as they may be extended in the :future. For these putposes, Company may construct, operate, repair and maintain electric distribution system and electric transmission lines, including poles, lines, fixtures, and any other necessary applUtenances in, on, over, under and across the Public Ways and Public Grounds of at)'; Company maydo all reasonable things necessary or customary to accomplish these putposes, subject, however, to the further provisions of this franchise agreement. SECfION 3. Restrictions Subd. 1. Companyfacilities included in such electric distribution s}~tem, transmission lines and applUtenances thereto, shall be located and constructed so as not to interfere with the safety and convenience of ordinary travel along and over said Public Ways and so as not to disrupt nonnal operation of any aty Utility System previously installed therein. Company's construction, operation, repair, maintenance and location of such facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the aty to the extent not inconsistent with the terms of this franchise agreement. Company may abandon its lUlderground electric facilities in place, provided, at the eitys request, Company will remove abandoned metal or concrete encased conduit interlering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the atyimprovement project. Subd. 2. Company shall not construct any new installations within or upon any Public . GrOlUlds without receiving the prior written consent of an authorized representative of City for each such installation. Subd.3. In constructing, removing, replacing, repairing, or maintaining said poles, lines, fixtures and appurtenances, Company shalL in all cases, place the Public Ways in, on, under or across which the same are located in as good condition as they were prior to said operation and maintain any restored paved surface in such condition for two years thereafter. City hereby waives any requirement for Company to post a construCtÎon perfonnance bond, certificate of llslU'ance, letter of credit or any other f01ll1 of security or assurance that may be required, lUlder a separate existing or future ordinance of the City, of a person or entity obtaining the Citys permission to install or maintain facilities in a Public Way. SECfION 4. Tree Trimming Companyis also granted the permission and authority to trim all shrubs, trees, including roots, in the Public \Vays and Public Grounds of City interfering with the proper construction, operation, repair and maintenance of any poles, lines, fixtures or appurtenances installed in pursuance of the authority hereby granted, provided that Company shall save City hannless from any liability in the premises. SECTION 5. Service and Rates The service to be pro-vided and the rates to be charged by Company for electric service in City are . 2 subject to the jurisdiction of the Public Ui:i1ities Co11111JÍssion of this State or its successor agency. . SECfION 6. Relocating Subd.1. Whenever City at its cost shall grade, regrade or change the line of any Public Way, or construct or reconstruct any City Utility System therein and shall, in the proper exercise of its police power, and with due regard to seasonable working conditions, when necessary, and after approval of its final plans have been obtained, order Company to relocate pennanendy its lines, services and other property located in said Public Way materially interlering with the eitys planned construction, Company shall relocate its facilities at its own expense. City shall give Company reasonable notice of plans to grade, regrade or change the line of any Public Way or to construct or reconstruct any City Uility System therein. However, after Company has so relocated, if a subsequent relocation or relocations shall be ordered within five (5) years from and after first relocation, City shall reimburse Company for such non-bettennent relocation expense which Company may incur on a time and material basis; provided, if subsequent relocations are requested because Company facilities materially and necessarily interlere with the extension of a City Utility System to previously unserved areas, Companymaybe required to relocate at its own expense. Subd. 2. Nothing contained in this franchise shall require Company to relocate, remove, replace or reconstruct at its own expense its facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement. Subd. 3. Any relocation, removal, or rearrangement of any Company facilities made necessary . because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Jvlinnesota Statutes Section 161.46 as supplemented or amended; and further, it is expressly understood that' the right herein granted to Company is a valuable property right and City shall not order Company to remove or relocate its facilities without compensation when a Public Way is vacated, improved or re-aligned because of a renewal or a redevelopment pJan which 15 financjal1y subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non-bettennent costs of such relocation and the loss and expense resulting therefrom are first paid to Company. Subd. 4. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Way or Public Ground was established, or Company's rights under state or county penmt. . 3 · SECTION 7. Indemnification Subd. 1. Company shall indemnify; keep and hold the City free and harmless from any and all liability on account of injruy to persons or damage to property occasioned by the construetion, maintenance, repair, inspection, the issuance of pennits, or the operation of the electric facilities located in the Public Way-> and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the Citys negligence as to the issuance of pennits for, or inspection of, Company's plans or work The City shall not be indemnified if the injruy or damage results from the perlonnance in a proper manner of acts reasonably deemed hazardous by Company, and such perlonnance is nevertheless ordered or directed by City after notice of Company's detennination. Subd. 2. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City; which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the CÏt)s and Company, in defending any action on beha1£ of the City shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 8. Vacation of Public Way:> · The City shall give Companyat least two (2) weeks prior written notice of a proposed vacation of a Public \X1ay. Except v.rhere required solely for a City improvement project, the vacation of any Public Way, after the installation of electric facilities, shall not operate to deprive Company of its rights to operate and maintain such electric facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall the City be liable to pay damages to Company for failure to specifically preserve a right-of--vvay, under 1v1innesota Statutes, Section 160.29. SECTION 9. Franchise Fee Subd. 1. Fee Schedule. During the te1ll1 of the franchise hereby granted, and in lieu of any pennit or other fees being imposed on Company, the City may impose on Company a francruse fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the ÛJmpanyand paid to the CÏt)r in accordance with this Section 9 shall not to exceed the following amounts. · 4 · Oass Fee Per Month Residential 8% SmC&I -Non-Dem 8% SmC&I -Demand 8% Large C&I 8% Public Street Ltg 8% Muni Pumping -N/D 8% MlU1ÏPumpÏng - Dem 8% Subd.2. Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Qmnci1, -which ordinance shall not be adopted tUltil at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective tUltil at least 60 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. Section 11.2 shall constitute the sole remedy for solving disputes between Company and the City in regard to the intetpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence tUltil this Ordinance is effective. A separate ordinance -which imposes a lesser franchise fee on the residential class of customers than the maxnmun amotUlt set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amotUlt per class as the reduction represented by the lesser fee on the residential class. · Subd.3. Terms Defined For the purpose of this Section 9, the followIDg definitions apply. 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or detennÏned in Company s electric tariffs on file with the Commission. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from -which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. Subd.4. Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amotUlt collected by Company during complete billing months during the period for -which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for -which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amotUlts specificallypennitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legallytUlable to first collect an amotUlt equal to the franchise fee from its customers in each applicable class of customers by · imposing a surcharge in Companys applicable rates for electric service. Company may pay the City the 5 fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for · inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Companyagrees to provide at the time of each payment a statement summarizing how the franchise fee payment was detennined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any lUlcollectibles, refunds or error correctlons. Subd. 5. Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions ,vill be waived to the extent of such written consent. SECTION 10. \Vritten Acceptance · Company shall, if it accepts this Ordinance and the -rights and obligations hereby granted, file a written acceptance of the rights hereby granted v..rith the City derk within ninety (60) days after the final passage and any required publication of this Ordinance. SECTION 11. General Provisions Subd. 1. Every section, provision, or part of this Ordinance is declared separate from every other section, provision or part; and if any section, provision or part shall be held invalid, it shall not affect any other section, provision or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail Subd. 2. If either party asserts that the other party is in default in the perlonnance of any obligation hereunder, the complaining party shall notify the other patty of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties v.ill equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within thirty (30) days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law. · 6 . Subd. 3. This Ordinance constitutes a fr.mchise agreement between the City and Company as the only parties and no provision of this fr.mchise shall in any way inure to the benefit of any third per.;on (including the public at huge) so as to constitute any such per.;on as a third party beneficiaty of the agreement or of anyone or more of the tenns hereof, or otherwise give rise to any cause of action in anyper.;on not a party hereto. Subd. 4. Any change in the fOlTIl of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company; succeed to all of the rights and obligations of the Cityprovided in this Ordinance. Subd. 5. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Company's facilities while perfonning any activity. SECTION 12. Publication Expense The expense of any publication of this fr.mchise Ordinance required by law shall be paid by Company. SECTION 13. Effective Date This Ordinance is effective as provided by statute or charter and upon acceptance by Company as provided in Section 9. . Passed and approved: ,20_ May¡r Attest: Gty Oem . 7 · ORDINANCE NO. AN ORDINANCE IlvIPLElvlENTING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES PO\\ŒR COIvIPAN'Y,A MINNESOTA CORPORA..TION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC ENERGY SERVICE WITHIN THE CITY OF ST. JOSEPH THE CITY COUNCIL OF THE CITY OF ST. JOSEPH DOES ORDAIN: SECTION 1. The City of S1. Joseph Municipal Code is hereby amended to include reference to the follmving Special Ordinance. Subdivision 1. Purpose. The St. Joseph City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide electric services within the City of S1. Joseph. (a) Pursuant to City Ordinance and IvIinn. Stat. § 216B.36, a Franchise Agreement between the City of St. Joseph Steams County Cooperative Electric Association, its successors and assigns, the City has the right to impose a franchise fee on Steams County Cooperative Electric Association, its successors and assigns, in the arnount of eight percent (8%) of its gross earnings from its operations in the City of St. Joseph for all classes of customers, so long as it shall · operate in the City. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Steams County Cooperative Electric Association, its successors and assigns, under its Electric franchise in the amount of two percent (2%). Subdivision 3. Payment. The franchise fee shall be payable quarterly and shall be based on the amount collected by the Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements. The Company agrees to make its records available for inspection by the City at reasonable times, provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer 01' customers or any other information regarding identified customers. The Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any un collectibles, refunds, or error corrections. Subdivision 4. Surcharge. The City recognizes that the Ivlinnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility · company for the cost of the fee and that Stearns County Cooperative Electric Association will surcharge its customers in the City the amount of the fee. . Subdivision 5. Record Support for Payment. Steams County Cooperative Electric Association shall make each payment when due and, if required by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Subdivision 6. Enforcement. If either party asserts that the other is in default in the performance of any obligation of this agreement, the complaining party shall notify the other party of the default and the desired remedy in writing. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution to the dispute. If the dispute is not resolved within thirty (30) days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of said mediator. If a mediator is not used, or if the parties are unable to resolve the dispute within thirty (30) days after meeting with the second mediator, either party may commence an action in District Court to interpret and enforce this agreement or for other such relief as may be permitted by law, equity or breach of contract. Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to Steams County Cooperative Electric Association by celi:ified mail. Passed and approved: ,20_. . Mqyor Attest: Ciry Clerk SEAL . League of Minnesota Cities · 145 University Avenue West, St Paul, MN 55103-2044 Løagua of Mjrmesota Cñiu (651) 281-1200 . (800) 925-1122 Fax: (651) 281-1299 · TDD: (651) 281-1290 Cilier promoling e:.:œlkn"" www.lmnc.org Resource Guide For Dealing With Budget Cuts: Strategies for Cities A Supplement to Guidelines for Preparing City Budgets 2004 · Look inside for: 1. "What Alternative Delivery Strategies are Right for your City?" Policy issues related to alternative service delivery methods-cooperation, consolidation, contract-for-service, privatization 2. City examples of cooperation, consolidation, contract-for-service, and privatization 3. Discussion of revenue enhancements and transitional fiscal strategies · AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER League of Minnesota Cities Resource Guide for DeaJing with Budget Cuts: Strategies for Cities . Contents In tro d u cti on.... .............".... ....". ..."".... .....".."....".... ........ ............... .................................................1 Reducing or Eliminating Service ..............................................................3 Communicating with citizens about reductions...............................3 Liability considerations following cutbacks ....................................4 Preparing for layoffs ........... ........... ............ ........ ........................ ......4 League resources...... ........................................................................5 Other resources................................................................................5 Revenue Enhancements: N on-Tax Revenue............................................ 7 Fees and user charges........ ..... .... .............................. .... .'...................7 League resources.............. ...... .... ... ... ..... ..... ........ ... ..... ........ ........7 State and federal gasoline taxes .......................................................7 Transitio nal Fis cal S tra tegi es.............. ......................................................9 Levying for lost aid ........................ ......... ....... .... ..............................9 Using fund balances..... ...................... ..............................................9 Increasing reliance on debt ........ .............................. ......... ........... ....9 Alternative Service Delivery Methods ...................................................11 Cooperative arrangements.. ......... ...... ................ ............. ........... ....11 League surveys on cooperation....... ........... .......................... ....12 League resources......... ........ .............. .... ....... .... ..... ........ ......... ..12 Other resources....................................................................... .13 . City examples ............... .......... ......... ..... .............. .................... .13 Privatization .................. .................................................................1 7 Resources................................ ............................................... ..18 City examples.... ......... ........ ....... ............ .................... ..... ..... ....18 Cautions when hiring contractors ..................................................18 League resources........... ......... ....... ........ ........... ............. .......... .18 What Alternative Delivery Strategies Are Right For Your City .........19 Issues to consider......................................... ................................ ..19 Privatization: Issues to consider..... ........... ......... ......... ........ ...... .....21 Using volunteers .................. .......... ........... ....... ...... ...................... ..22 League r~sources........................................................................... .22 City examples................................................................................ .22 Con soli dation...................................................................."...... ............................................................................................25 League resources.. ............... .................... ............... ...................... ..26 City examples................................................................................ .26 Other Strategies for Efficiency ...............................................................27 Purchasing alliances and joint purchasing .....................................27 League resources......................................................................2 7 Other resources.. ...... ............... ................... ...... ..... ............ .... ...27 City examples ..................... .............................. ...................... .27 Technology applications............ ............. ............. ........................ ..28 League resources.............................. ....................................... .28 Other resources ..................... .............. ...... ............ ................. ..29 . City examples. .................... .................................................... .29 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Introduction For 2004, Minnesota cities are facing the most difficult financial circumstances in decades. Action by the 2003 Legislature has substantially reduced Local Government Aid and Market Value Homestead Credit payments to cities, while at the same time imposing some of the most severe levy limits in history on cities over 2,500 population. Cities will be considering a combination of strategies for meeting these challenges, including: · Reducing or even eliminating some services. · Increasing reliance on user fees and other non-aid, non-tax sources ofreveilUe. · Developing a transitional fiscal strategy. · Pursuing alternative service delivery methods. · Finding more efficient ways to operate the city. Each strategy has attractions, but also complications and pitfalls for the unwary. The League has prepared this supplement to the LMC Guidelines for Preparing City Budgets 2004 information memo to help city officials consider the options carefully, choosing those that make the most sense-not only for short-term budget balancing, but also to achieve the long-term well-being of the community and the city government. . . 1 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Reducing or Eliminating Services As a result ofthe reductions in state aid, cities around the state are contemplating cuts to services, capital improvements, and/or personnel. The League led roundtable discussions at the "Preparing for Cutbacks: The Risks of Making Tough Decisions" information sessions held during spring 2003 where city officials were asked what reductions might occur in city services or in city staff. The Municipal Clerks and Finance Officers Association held similar roundtable discussions. The following are some examples of possible cuts from the discussions: · Eliminating police department positions · Eliminating fire department positions · Reducing or eliminating seasonal positions for summer maintenance work (mowing, etc.) · Eliminating mosquito spraying program · Deferring street maintenance projects · Reducing city hall hours · Closing the library for one week · Reducing library hours · Making layoffs of city staff; instituting a hiring freeze · Eliminating the parks and recreation department · Snowplowing only after minimum of two or three inches · Cutting criminal prosecution positions . · Selling fire equipment · Delaying capital projects and capital equipment purchases · Closing swimming pool; hockey rink (The full list of possible reductions discussed at the League's "Prepare for Cutbacks" . information sessions is available on the Dealing with Cutbacks page of the LMC web site at: www.hnnc.org/lmcit/cutbacksresources.cfm) Each of these examples will impact city residents' daily lives as well as the lives of those who work in or visit a city. In choosing what kinds of cutbacks to make and how severe those cutbacks will be, cities should consider the impact they will have on the community. One way to more fully understand the potential impact of service and/or personnel cuts is to invite community members to give feedback on the possible budget actions. Recently in New Brighton, for example, city officials held a Community Values Forum during which citizens were asked to identify what they valued most in their community. This priority-setting exercise will help city officials make budget cuts that reflect the needs and values of citizens. Communicating with citizens about reductions The League has prepared several tools to help city officials communicate with citizens about the kinds of cuts cities will make in dealing with the state budget cuts. In addition to answers to frequently-asked questions about state aid, levy limits, and debt restrictions, the League's Communications & Strategic Initiatives Department has drafted a sample agenda for a town hall . meeting that city officials can use to guide conversations about cuts with residents. There are also sample letters to the editor and sample resolutions: 3 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities These communication tools are available on the Dealing With Cutbacks page of the LMC web . site at: www.lmnc.ore/lmcitlcutbacksresources.cfm Liability considerations following cutbacks Reducing staff or services can introduce important liability considerations for the city. Service or staff cutbacks could result in a higher risk of accidents and/or injuries and more claims against the city. For example, eliminating fire or police staff positions could increase response times and risk of injuries and delaying sidewalk repairs could increase the chance that someone using the sidewalk falls and is injured. The legal principle of discretionary immunity protects a city from such claims if the city can show that its decisions to reduce services or personnel are planning level decisions that involve a balance of social, political, economic, and safety considerations. This important protection helps ensure that decisions about how to spend scarce resources are made by city officials and not by the judicial system. In order to build strong rationale for claiming protection by discretionary immunity, city officials should do a few things. First, cuts to services or personnel should be legislative decisions made by the city council. Second, all ofthe social, economic, political, and safety considerations must be taken into account during the decision-making process. Third, cities should maintain clear records that cover each step of the process. This includes keeping good minutes of council meetings and including several "whereas" statements in council resolutions so that all of the considerations are clearly stated and on record. More in-depth information about discretionary immunity is available on the LMC web site (see League Resources section below). Preparing for layoffs . The League has prepared a checklist for cities related to layoffs and other staffreductions. It describes the steps a city should take to prepare for layoffs.-It is important for cities to ensure that all the relevant parties are kept informed throughout the process, including the city attorney. Cities should review all existing policies related to layoffs and severance packages. If a severance package is offered to encourage employees to leave voluntarily, offering the package unifonnly is a way to avoid discrimination claims. A city's union contract may stipulate whether or not the city is allowed to subcontract for bargaining unit work in an effort to realize cost savings. Much like in the preparations for using discretionary immunity, cities should keep good records during the layoff process. Cities also need to consult requirements for continuation of group medical benefits. Flexible spending accounts may also be impacted by a layoff decision. The League checklist also includes guidance in determining which positions to eliminate. Cities may consider a hiring freeze instead of layoffs. With a hiring freeze, positions that are critical or are one-person departments may have to be left vacant. This may have serious impacts on the quality and availability of a specific service. Any exceptions to the freeze should be clarified up front. Cities should consider solely business reasons in deciding whom to layoff in order to avoid discrimination suits. Any contracts that the city has related to certain programs, such as building codes and inspections, should be reviewed during the layoff process in order to avoid being out of compliance. The treatment of employees who are veterans is another issue for cities to examine carefully. A city may layoff a veteran if that individual is the least senior employee and the position is . abolished. The veteran's job duties should not be assigned to less senior positions, as this may irnply that the veteran's position was abolished simply to avoid the veteran's right to a hearing. 4- League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . As part of the "Preparing for a Layoff and other Staffing Reductions: A Checklist for Cities" document, the League details a few questions cities should ask when a layoff involves a veteran in order to make sure the decision was made in "good faith." Cities can also consider using early retirement incentives, directed at either the entire city staff or certain groups of employees. The incentive package needs to meet the requirements ofthe Equal Employment Opportunity Commission (EEOC) for "voluntary." To learn more about the requirements, visit the EEOC web site at: www.eeoc.gov/docs/qanda-benefits.html Voluntary termination and voluntary leave are other options. Voluntary termination packages usually include some severance benefit not ordinarily available. Cities should work with their city attorneys to draft the agreements for employees to sign. If pursuing the voluntary leave option, cities need to consider employee morale, the impact on spending, payments for insurance benefits, and the impacts on exempt versus non-exempt employees. Cities in Minnesota, like other employers, are responsible for maintaining unemployment insurance. Unlike private employers, however, most cities pay for unemployment insurance on a reimbursement basis to the Minnesota Unemployment Insurance Trust Fund. This will be an ongoing cost after employees are laid off. In general, the maximum amount of benefit is the lesser of26 times the individual's weekly benefit amount or 1/3 of the individual's total base period wages. The Minnesota Employer's Unemployment Handbook (available online at: www.mnwfc.orgl) provides information on estimating an employee's potential unemployment . benefits. Finall~ keeping accurate records during the entire layoff process is important for building a case for discretionary immunity in the event of claims against the city. Cities are not bound by state or federal laws to give advance notice of layoffs, but each city should consult its own personnel policies, civil service rules, and union contracts. Cities should also detennine their "call-back" criteria in advance of any layoffs. A systematic, consistent method should be used. If a city opts to use volunteers following layoffs, there may be important liability concerns. These are covered in another LMCIT memo, Covering the City's Volunteers (listed below). League resources: · Liability Considerations in Budget Cutbacks: Preserving Discretionary Immunity (pdf) www.lmnc.org/pdfs/preserving%20discretionary%20immunity.pdf · 10 Basic Principles of Discretionary Immunity (pdf) www.lmnc.org/pdfs/principals.discretionary.immunity.pdf · Exercising Discretion-Keeping Records to Support Immunity (pdf) www.lmnc.org/pdfs/discretionaryimmunity.pdf · Preparing for a Layoff and Other Staffing Reductions: A Checklist for Local Governments www.lmnc.org/hr/layoffs.cfm · Covering the City's Volunteers (pdf): www.lmnc.org/pdfs/volart.pdf · LMC infonnation on COBRA: www.lmnc.org/hr/cobramanual.cfm · Minnesota and COBRA Continuation Coverage (pdf): www.lmnc.org/pdfs/Cobra.pdf . Other resources: Minnesota Employer's Unemployment Handbook: www.mnwfc.org Minnesota Department of Economic Security: www.mnwfc.org 5 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Revenue Enhancements: Non-Tax Revenue Fees and user charges In various roundtable discussions sponsored by the League and by the Municipal Clerks and Finance Officers Association, several cities indicated that they are considering instituting new fees and service charges as well as raising existing fees. Some ofthe fees and charges being discussed include those for pools, parks, funeral police escorts, community centers, fire calls, cemeteries, camping, administrative services, inspections, mosquito spraying, franchise fees, gambling fees, and utility fees. Fees should equal the total cost ofthe service, minus any appropriation ftom the general fund to that service program. Cities should have a clear rationale for appropriating a portion ofthe general fund to fee-based service programs. If the service program has impacts on quality oflife for the community as a whole, an appropriation ftom the general fund may make sense. Cities should make sure that the fees it charges for services accurately reflect the full cost of providing those services. A direct relationship between payments made and service delivered is the result of a careful examination of each element that goes into providing the service. It is important to determine the overhead, or fixed, costs of providing the service. Fixed costs include salaries, equipment, and facilities. Another important step is to chart where staff time is directed. Cities should also include overhead or administrative costs for non-direct expenses, such as time . spent by fmance staff and city administrators. By clearly delineating relationships between the fees collected and the services provided, a city can identify opportunities for new user fees and charges. These relationships also allow the city to provide a clear rationale for charging for certain services. Cities are allowed to charge fees for public service enterprises such as hospitals, nursing homes, golf courses and utilities. They also commonly charge fees for: fire protection outside city limits, garbage and refuse disposal, recycling, street lighting, police escorts, sewer maintenance, non- city use of city hall, use of city recreation facilities such as pools or ice arenas, and use of park and picnic facilities. League resources: . LMC Handbookfor Minnesota Cities, Chapter 22: Sources of Revenue www.lmnc.org/library/handbook.cfm State and federal gasoline taxes Gasoline purchases by cities are subject to the state tax on gasoline, currently set at 20 cents per gallon. Cities are eligible for a refund ofthis tax on gasoline used in vehicles for off-highway business use. For more detailed information about this refund and how to claim it, see LMC information memo, Guidelines for Preparing City Budgets 2004. Cities are exempt from paying federal excise taxes on gasoline and most diesel fuel purchased for the exclusive use ofthe city. There are different ways that cities can use this exemption. Details are provided in the LMC . infOlmation memo, Guidelines for Preparing City Budgets 2004. 7 League of Minnesota Cities Res~urce Guide for Dealing with Budget Cuts: Strategies for Cities . Transitional Fiscal Strategies In meeting the challenge of reduced state aids and severe levy limits (for cities over 2,500 population), cities may consider different fiscal strategies. As part of a single- or multi-year strategy, cities could decide to levy for lost aid, use fì.md balances, increase their reliance on debt or pursue a combination of these three options. Levying for lost aid The Legislature passed new levy limits for 2004 for cities over 2,500 population. Cities will be allowed to increase their property tax for up to 60 percent oflost state aid, but levy limits do not include any ofthe traditional levy growth adjustments for inflation, household growth or commercial/industrial growth. The 60 percent is based on the difference between certified 2003 local government aid (LGA) and market value homestead credit (MVHC) and the reduced 2004 LGA and MVHC. If cities have unused levy authority from 2003, they will lose all ofthat unused levy authority for taxes payable in 2004. Cities will also be allowed to levy for debt service payments. Using fund balances While cities may consider depleting their fund balances as way to deal with the budget cuts, there are several important issues to keep in mind about taking this step. Since in many cases cities build up reserve funds for capital improvements and purchases, using reserves for other purposes may mean having to delay critical infrastructure projects or maintenance. Delaying . these projects could increase their cost. Fund balances are also built up so that a city has rainy day funds. Depleting the reserves may mean that a city is unable to mitigate future cash flow problems or respond adequately to natural disasters or other emergencies. Bond rating firms, such as Moody's, take a city's fund balance into account when giving a city a rating. Depleting reserves could lower a city's bond rating, making future borrowing more expensive for taxpayers. Finally, fund balances are one-time dollars, while reductions to aids are in many cases permanent. Cities should exercise caution in using fund balances to cover long- term shortfalls. This will only delay difficult decisions and may put a city in an even more precarious financial situation. Cities should also have plans in place for restoring balances to an appropriate level. The League has prepared a brief overview of fund balances, including how the state auditor reports fund balances, uses for fund balances, and the role of a fì.md balance in a city's overall financial health. The information is available in the Policy Research section of the LMC web site at: \vww.lmnc.or2'/ Increasing reliance on debt Another strategy for dealing with budget shortfalls may be to replace general fì.md expenditures (direct purchasing) with borrowing when possible. An example would be to use dollars from a revolving capital improvement fì.md for one-time spending, and then borrow for capital projects. . Another example is to purchase capital equipment bonds or other legally-authorized instruments for which repayment is outside levy limits. As with depleting fund balances, cities should exercise caution if increasing reliance on debt. Much as a city's fund balance can influence the 9 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities city's bond rating, heavy reliance on debt may result in a lower bond rating since the city will be · bound by future debt obligations and might present a higher risk for lenders. \^lhen considering increasing debt, cities should also carefully analyze how paying off those additional debts will fit into future city budgets. Having too much debt to payoff each year could result in cash flow problems for a city. · · 10 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Alternative Service Delivery Methods Traditionally, services and programs were established when cities recognized a particular need in the community and organized city employees to perform tasks in order to meet that need. With budget cuts, cities are looking at alternative ways to meet the needs of their communities. There are several different ways to deliver services that cities can consider: entering into cooperative agreements or contracts with other units oflocal government, consolidating with other local units, and contracting out to the private sector. For example, the cities in Scott County recently fonnOO the Scott County Alliance for Leadership and Efficiency. City officials meet to discuss potential ways to share equipment and resources. This section discusses these kinds of arrangements and suggests several resources to cities for further information. Examples of cities that have used these alternatives are provided as well. Following the discussion and the examples is a checklist of important issues for cities to examine when considering alternative service delivery methods. Finally, there is a brief section on using volunteers to provide services. Cooperative arrangements Cities in Minnesota have the authority to enter into joint powers agreements with other cities, counties, townships, school districts, and special purpose districts (MS 471.59, Joint Powers Act). The statutes allow cities to exercise collectively any power authorized individually. Some . joint powers agreements create separate joint entities, while others do not. An example of a separate entity is a board fonned by a joint powers agreement to operate and maintain a swimming pool. Beyond the Joint Powers Act, cities also have statutory authority to enter into joint agreements in several specific areas, such as to employ a joint assessor, to jointly maintain public cemeteries, to jointly operate a municipal police department, to contract for police protection or to jointly operate ambulance service. Any ofthese may also be done under a joint powers agreement. Finally, cities can undertake joint programs for administrative functions like sharing personnel such as building inspectors. Other cooperative arrangements are mutual aid agreements and service contracts. Under mutual aid agreements, each participant agrees'to provide assistance and/or equipment in specific circumstances such as a fire emergency. The cities in the Scott County Alliance are looking at fonning a countywide mutual aid agreement for police and/or fire services. Service contracts involve one or more units of local government paying another unit for the provision of some servIce. Cities are also authorized to discharge certain responsibilities by contracting with their county boards. Some examples are contracts for library service, police protection, and planning/land use assistance. In a recent example, the city of Foley voted to eliminate the Foley Police Department and pay the county for police services. The county will hire three full-time deputies to serve . Foley starting in late summer. In addition to entering agreements with their counties, cities can also contract with other cities for library, police, and planning services. 11 League of Minnesota Cities Resource Guide for Dea1ing with Budget Cuts: Strategies for Cities League surveys on cooperation · The League recently completed an informal survey of Minnesota cities and a review of the League's files to learn about the kinds of cooperative agreements in which cities have participated. It is important to point out that these are only the agreements of which the League is aware. It is likely that there are and have been many more fonnal and informal agreements in effect throughout the state. The League did a more comprehensive survey in 1992 and respondents then reported 1,800 cooperative agreements. The 718 agreements (past and current) for which the League has some basic information break: down into the following categories: Type % of Agreements Type % of Agreements Police/Law Enforcement 19% Transit 3% Parks and Recreation 15% Cable/Utilities 2% Fire Services 13% Combined Police and Fire 2% General Government! Admin. 12% Libraries 2% Sanitation 11% Natural Resources 2% Economic Dev./Housing 6% Public Works 2% Streets and Highways 5% Airports 1% Health 5% Roughly one-third of these agreements are joint powers entities, formed most often for public safety, recreation, sanitation, and general government services. Most of the mutual aid agreements and service contracts are for fire and police. League resources: · · Combining Government Services-Issues to Consider (pdf) www.Imnc.org/pdfs/combining%20governmentaI %20services. pdf · Combining Police Departments-Issues to Consider (pdf) www.Imnc.org/pdfs/jointpowersmemo.pdf · Liability Coverage for Joint Powers Agreements (pdf) www.Imnc.org/pdfs/Jtpower.pdf · Model Mutual Aid Agreement (pdf) www.lmnc.org/pdfs/mutuaIaidmodeI.pdf · Fire Department Mutual Aid System for Extraordinary Incidents (pdf) \VWW .Imnc.org/pdfs/mutuaIaidfire. pdf · Sample City-City Service Contract for Law Enforcement Services (pdf) w,,'w .Imn c. org/p dfsl city-cityj p. pdf · Sal11]Jle City-County Service Contract for Law Enforcement Services (pdf) wwv\' .Imnc. org/p dfsl city-coun tyagreement. pdf · Sample Police Department Consolidation Agreement--Centerville, Circle Pines, Lexington (pdf) www.Imnc.org/pdfs/consolidation-ccl.pdf · Sample police department consolidation agreement--Excelsior, Deephaven, Greenwood, Shorewood, Tonka Bay (pdf) ww,",\' .Imnc. org/p dfsl consolidation -edgst. p df · LMC Handbook for j\1innesota Cities, Chapter 19: Intergovernmental Cooperation www.lInnc.org/library/handbook.cfm · 12 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Other resources: . FirelEMS Safety Center: Guidelines for Minnesota Fire Protection Contracts www.firecenter.mnscu.edu . Best practices reviews from the Office of the Legislative Auditor that feature examples of and recommendations for cooperation (fire services, snow and ice removal, 911 dispatching, local e-government) www.auditor.leg.state.mn.us City examples: Sources: LMC City Achievement Award Applications (indicated by year in parentheses); Legislative Auditor Best Practices Reviews; LMC joint powers files. City examples: Public Safety Anoka County Dispatching System Anoka County has agreements with all of the cities within the county for emergency radio services. The arrangement dates back to 1973, when the Anoka County Central Communications started providing services in an effort coordinated by the Anoka County Joint Law Enforcement Council. In 2002, special legislation gave the county the authority to bond for upgrading the radio systems. Anoka County Criminal Investigation . Felony-level investigation services (e.g. homicides, child abuse, hazardous waste crimes) and crime scene processing are provided by the county's criminal investigation division to all the police departments within the county. While local police departments within the county still patról independently, investigations into felonies are jointly performed. Brooklyn Park (2002) The city's fire department provides joint training with the Anoka-Hennepin Technical College for firefighters. Brooklyn Park, Golden Valley, Maple Grove (2002) Along with North Hennepin Community College, the cities provide supervisory training to department supervisors. MnSCU Fire Training Voucher funds are used for the project. Brooklyn Center, Brooklyn Park, Crystal, Maple Grove, New Hope & Plymouth Cities operate a joint animal impound facility, Pets Under Police Security (PUPS). New Hope & Crystal New Hope and Crystal began operating their on-call fire departments as a joint fire district, the West Metro Fire-Rescue District, in 1998. Responses are now based on proximity to the three fire stations, and fire prevention efforts, including code enforcement and fire safety education, are consistent throughout the district. The joint department also established a vehicle replacement program. Recently, the two cities approved a study to examine the impacts of consolidating their police departments. . 13 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities North Suburban Regional Mutual Aid Association · Cities in the Association share specialized expertise when emergencies occur. Decontamination of hazardous materials spills, dive and rescue services, and trench rescues are some of the specialized skills that different cities can offer to each other. Member cities include Fridley, Plymouth, Brooklyn Park, Brooklyn Center, West Metro Fire Department (New Hope and Crystal), and Maple Grove. Northfield, Faribault, Owatonna & Rice and Steele Counties These local units of government fonned a joint powers agreement to merge their Public Safety Answering Points (pSAPs) into one and share in the cost oftechnological improvements to the system. All of the participants were involved in the planning and implementation of this merger process. Thief River Falls & Pennington County The city and county share a law enforcement center for the police and the county sheriff. The local units share in the costs of the dispatch service and maintenance of the general work areas. Winnebago The Winnebago Fire Department participates in joint training of fire fighters with all the fire departments in Faribault County. The joint training allows the departments to be able to afford instructors from the technical college. The departments also participate in mutual aid associations and share a master list of specialized equipment and its location. The departments also participate in j oint purchasing of equipment. · City examples: Parks and Recreation Brooklyn Park (2003 winner) The city and the Osseo School District worked together to improve Zanewood School and Park site as part of the city's development effort for the Zane Avenue Corridor and Brooklyn Boulevard area. The surrounding community had a high immigrant population, creating a need for a facility and programs, including outreach services. The City and District applied for a state grant to renovate the old park building into a new youth center. Both contributed to joint construction of the new center. They fonned ajoint powers to allow district to build on city property Cannon Falls Cannon Falls joined other area cities in ajoint powers agreement to operate and maintain the Cannon Valley Trail. Spring Lake Park & Mounds View (2002) Spring Lake Park co-owns a park with the city of Mounds Vie·w. The cities share in maintenance and development of the park. The local lions club donated funds to the park. · 14 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities · City examples: General Government Montgomery (2003 winner) The city, the school, and the Chamber of Commerce share a school/community resource coordinator. Three organizations had needs for communication, community liaison work, outreach, public relations, and promotion management. They pooled resources to attract and retain a professional with desired skills and experience. The city, school, and chamber all contribute roughly 1I3rd ofthe compensation package. The resource coordinator is building relationships and support networks with city leadership and improving communications with citizens. New Hope & Crystal(2003) New Hope is working with city of Crystal in planning development for the end of the Bass Lake Road Corridor that falls in Crystal's jurisdiction. A Livable Communities Demonstration Grant ITom the Metropolitan Council was awarded to the city in 2000. City is also working with the school district and a non-profit housing developer. Western Area Cities/Counties Cooperative (W ACCO) (1995 winner) Eighteen cities and seven counties in West Central Minnesota [olIDed a joint powers agreement to share equipment, human resources, training, and purchasing. City examples: Transit, Streets, and Highways · Burnsville, Apple Valley, Eagan, Rosemount, Savage, Prior Lake, Shakopee & Inver Grove Heights Cities [olIDed a joint powers agreement for traffic markings, street sweeping and seal coating. Chanhassen, Chaska & Eden Prairie The cities fOlIDed a joint powers entity, Southwest Metro Transit, to provide public transportation in their communities. Crystal & Golden Valley The cities fOlIDed a joint powers agreement for 10ng-telID maintenance of the pedestrian bridge over Highway 100. City examples: Miscellaneous Belle Plaine, Elko, New Market, Jordan, Prior Lake & Savage (1996 winner) Cities in Scott County joined in the Scott-Joint Prosecution Association to share a staff attorney for prosecutorial services. Sharing an attorney has led to faster resolutions, higher fine revenues, more recovered prosecution costs, and increased confidence in the court system. Police departments and the association cooperate well and cities can trust in having an experienced attorney for their cases. Consistency among the different cíties for similar cases and sentencing has improved. · 15 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities Brooklyn Center, Brooklyn Park, Crystal, New Hope & Robbinsdale (1994 winner) · These cities fonned the Co-op Northwest in 1991 as a collaborative initiative of Northwest Hennepin Human Services èouncil to address a range of service needs. The cities coordinate their efforts in order to develop solutions to housing, employment, and human services in their communities. Staff from the Council work with city staff in addressing needs common to each city. The Co-op has worked on reflecting the changing needs of increasingly multicultural communities in the services delivered and has developed a Workforce Initiative to strengthen and diversify the local workforce. Chatfield (2003) The city and the school district collaborated on a project to establish community television. The City provides franchise fee revenues and oversight while the district provides technical support, space and human resources; including student volunteers. Chatfield Community TV (CCTV) has enabled citizens to get accurate infonnation in a timely fashion and to enjoy watching city events. Hutchinson (2002) Hutchinson owns a composting facility and the city, McLeod County, and several surrounding communities joined together to start a recycling initiative. Residents now separate organic waste from other household waste and set on curb in biodegradable bags. City has seen significant savings in landfill charges (reduced landfill dumping by 35%). The project received an Environmental Assistance grant. Mankato (2002) · The city and the Mankato Area Public Schools jointl)' produce communications pieces for community residents, including the public school dates calendar, media handbook, radio talk shows, and community television. RoIlingstone (1996 Winner) Facing the possibility of rural school consolidation, citizens of the city of Rollings tone fanned a committee to seek planning grants and technology funds in order to build their OVin school. The city funded the architectural plan and various groups, including the Jaycees, pledged money to the effort. City offices are included in the school building to lower overall operating costs for both the city and the school. Council meetings, public hearings, and voting are all held in the school. City examples: Service Contracts Source: infonnal2003 LMC survey on contracts Bayport. Bayport paid the city of Oak Park Heights for building inspection services. Gem Lake. Gem Lake paid the city of Vadnais Heights for sewer and water service and snowplowing. Grant & Willernie. Grant and \Villernie paid Mahotmedi for fire services. · Greenfield. Greenfield paid the city of Rockford for fire services. 16 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Hilltop. Hilltop paid the city of Columbia Heights for police services. Landfall. Landfall paid the city of Maple wood for police services. Mendota Heights & South St. Paul. Mendota Heights and South St. Paul paid the city of West St. Paul for dispatch services. Rosemount. Rosemount paid the city of Eagan for dispatching services. Woodland. Woodland paid the city of Deep haven for administrative, planning, and police servIces. Privatization As another strategy, cities may choose to enter service contracts with private or not-for-profit firms. Privatization can bring about savings through more efficient delivery of a service. By opening up local provision of services to competition in the marketplace, cost savings and increased responsiveness may be realized. Further, local governments may be able to access expertise and technology resources available in the private sector. None of these benefits are certainties however, and cities should be cautious when considering privatizing services or functions. According to research by the futemational City/County Management Association, privatization . of public works, public utilities, and some public safety functions, like dispatching, are more likely candidates for privatization with for-profit firms. For-profit privatization, according to this research, works better when the service can be easily specified, there is competition among suppliers, and the service includes indirect elements or steps involved in providing the service that citizens do not directly experience. Privatization of health and human services and services related to the arts most often involve non-profit firms (Dannin, 2001 *). Cities in Minnesota have contracted out a wide range of services, including sewers, waste management, animal control, cemeteries, supplemental snowplowing and snow hauling, towing, and nursing homes. Cities routinely contract with consulting engineers, financial advisors, or urban planning ftrms. Privatizing a service may create new costs for a city because city staff may be needed to monitor or oversee the private firm's performance in order to ensure quality. Whether or not a for-proftt ftrm can truly provide a service at lower cost and still create proftt for their investors is an important issue to examine. If the firm lowers its costs by cutting wages and benefits, worker morale and motivation may suffer, which in turn may lower the quality of the service (Warner and Hefetz, 2001 *). Public employee union members are typically strong opponents of privatization, as their core job responsibilities may change considerably or the positions that they fill may no longer be required. Accountability is an important consideration in privatizing public services. Will the firm sub-contract for some elements of the service? How reliable will the service be and will it be accessible to residents ofthe community? . 17 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities Resources: · · Economic Policy Institute: www.epinet.org · American Federation of State, County, and Municipal Employees: www.afscme.org · Reason Public Policy Institute (think tank on privatization): www.rppi.org City examples: Source: contact with city officials, 2003. Apple Valley. Apple Valley contracts with RlvfR Services, LLC for meter reading services. Breezy Point. Breezy Point has contracted with a private £inn for animal control services within the city for roughly 7 years. Eagan. Eagan contracts with an independent contractor for supplemental snowplowing services during the snow season. The contractor is responsible for three routes in the city and plows whenever the city crews are plowing. The contract allows the city to clear the streets faster and maintain a level of service to its citizens. Hinckley & Sandstone. These cities contract with People Service to do readings of the water meters. People Service, is based out of Nebraska and serves several cities in southern Minnesota as well as cities in Iowa, Illinois, and Nebraska. People Service bought equipment and the cost is amortized over a period of five years in the operating contract. Pine Island, Sandstone, Hinckley, Askov & Finlayson. The cities also contract with People · Service for operation of its water and sewer systems. Caution when hiring contractors Cities hire contractors for a wide range of projects. There are important insurance and liability considerations for cities that do so. One ofthe critical issues is how a contractor is treated in matters of workers' compensation insurance, either as an employee or as an independent contractor. While statutes require contractors to show compliance with state law regarding this insurance, this does not mean that all contractors have the insurance. In order to avoid being held responsible for workers' compensation benefits for contractors who do not have workers' compensation insurance, cities should examine several factors. First, examine who has the right to control the means and manner ofperfonnance. With an independent contractor, the city, as hiring party, only specifies what the final result is to be and the contractor decides on what equipment to use and in what order to complete tasks. Second, independent contractor relationships are usually characterized by payment per project rather than an hourly wage. Third, independent contractors usually bring their own tools and equipment to the job. Fourth, independent contractors may work at their own premises. Finally, relationships with independent contractors cannot generally be tenninated without breaching a contract. League resources: . Insurance and Liability Considerations rVhen Hiring Contractors (pdt) www.lmnc.org/pdfs/Conins.pelf · 18 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . What Alternative Delivery Strategies are Right for Your City Issues to consider There are several important issues to consider regarding alternative service delivery methods. Impact on mission · Is this a core service over which government should maintain strong control? If so, can it best be done with public employees or through a contract or cooperative service arrangement? · What community values are at stake in this decision? Are there ethical concerns? Cities may provide certain services or programs that are seen as integral to community life and as part of the community's identity. Some services may also be ones over which city officials want to maintain strong control in order to ensure quality and meet citizens' expectations. Cities may view these services as core to their mission of contributing to quality oflife and any change in the way they are provided may contradict that mission. Officials will have to weigh these concerns carefully when considering the various issues related to alternative delivery strategies. It will be important to examine these concerns given the possible benefits and costs of contracting out or cooperating with another local government. Impacts on citizens and quality of life · What is the cost to citizens of changing the way a service is provided? . · What are citizens' preferences for the service? Resistance to change and preference for keeping services local are common barriers to cooperative service delivery. It is not safe to as-sume that citizens will view themselves as better served bya cooperative arrangement or service contract. Response time for police and fire emergencies if departments are consolidated are often of particular concern. Local government is part ofthe system in which citizens debate, choose, and explore collective goods. In other words, through local government, citizens learn about, make decisions on, and debate one another about things that will affect everyone in the community. It is important to examine how changing service provision will impact this system of interaction. · How will an alternative delivery method impact the quality of the service? Clearly defining the service is important to maintaining quality. Cities may need to establish monitoring procedures and clearly establish accountability for the quality of the service. Cities will need to determine whether administrative staff has the skills to adequately oversee contracts and joint powers agreements. · How much flexibility will the local government have to respond to changing citizen needs and expectations without bearing undue extra expense? After a city enters into a service contract or cooperative agreement with another local governm,ent, circumstances may change such that the city's citizens' needs for the service are . different. When considering alternative service delivery, city officials should inquire as to how flexible the arrangernent would be and what the process would be for revising some of the details regarding the service. 19 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities For example, if after contracting for police services from another city or the county a city · realizes that its citizens would be better served by having additional patrols, would that be possible and how much additional expense would it involve? Impact on costs · Will there be cost savings? · How can the city council monitor the costs and quality of the service? · Are all costs, including internal administrative costs of monitoring and oversight, being taken into account in cost comparisons between different delivery methods? Often, cooperative agreements allow local units to share equipment and facilities or even personnel. While cooperative agreements can reduce costs and avoid duplication of resources and services, it is not safe to assume they will do so in every case. Under a service contract, the full cost of providing a given service to another local government mayor may not be covered by the payment received. While these kinds of arrangements may in fact bring about cost savings in the long run, there may be initial one-time costs at the outset. Some important new costs to consider would be the staff time to monitor the cooperative arrangement for quality. Staff might need training in contract management or other skills to allow them to adequately evaluate the collaboration or service contract. Another important issue to consider is whether or not there would be significant start-up costs if the city found it necessary to provide the service on its own again. New equipment, training of staff, and hiring new staff could be some of the costs of such a decision. Availability of other local participants · · Are there other local governments nearby that already know how to perform this function well? Other local units may already have specialized equipment or facilities that are required for providing the service in question. Nearby cities' staff may have received training already in certain areas or may have initiated innovative ways of delivering some service. Impact on city staff · How will the workloads of current city employees change? · Can human resources be restructured effectively? If city employees' job functions change considerably once a service is being delivered cooperatively or contracted out to another local unit, employees may need to be reassigned to other duties. Impact on role of government · How does this service delivery decision impact the civic and community building capacity of the city government? · Can service delivery decisions be used to accomplish other city goals, such as economic development or building better relationships with other governments? An important consideration is what impacts the alternative method may have on other goals and objectives the city has. Each alternative service arrangement may also provide an avenue for · building relationships with neighboring local goveDll11ents that would become the foundation for additional cooperative arrangements in the future. 20 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Barriers and constraints a What barriers and constraints to pursuing alternative delivery methods may exist? In general, it is important to keep in mind that forming these kinds of cooperative agreements is not a simple process. Geographic distance between local units of government may prove a serious obstacle to cooperative arrangements. Contiguous local units, therefore, may have more success pursuing cooperative agreements for service delivery. Political barriers to cooperation may also exist. Privatization: Issues to consider In addition to the key questions above, there are several important issues to consider particularly when contemplating contracting out to a private organization. a Is the function similar to one already provided by the private sector? a How available are private vendors to provide the given service? Is there true competition in the marketplace? The theory behind privatization is that competition in the marketplace leads to better quality product and better prices. When considering contracting out to a private firm, city officials need to detennine whether or not the finn has competitors such that its product is of good quality and priced welL It may be that a private finn has a monopoly in the market for a given service, in which case the city may not see cost-savings from opting to contract with that firm. . a In the long term, can public employees learn the skills to be able to provide this service in- house? a Can employees participate in the learning even if the service is contracted out? In some cases of privatization, the city and the private firm share responsibility for delivering a service. A simple example is snowplowing; the city may plow some routes but contract other routes out to a private finn. It may be worth examining whether city employees will be able to gain the skills necessary to deliver the service in-house if the city were to decide to end its contract with the private finn. a If the private vendor goes out of business, what options will the city have? Will there be significant interruptions to service? a If the vendor is lost or the quality is unsatisfactory, what would be the costs to the city of reverting to providing the service in-house? What would the transition time be? If competition in the marketplace becomes too severe or a firm's suppliers leave the area or cease operations, a firm may be unable to continue its contract with the city. In that situation, how long citizens would be unable to depend upon that service is an important issue. Also, if after contracting out to a private firm, the city decides to renew its in-house provision of a service, it is important to consider what costs would be involved. There could be significant training and equipment costs associated with such a shift. . 21 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . How can the city ensure that the interests of citizens do not become secondary to those of · private finns with whom the city does business? . How can the city ensure that friendships and relationships do not get in the way of making good decisions for the city? It is important to consider the motivations of private finns to make a profit and/or perfonn well for their investors. These goals might conflict with providing the quality services that cities are expecting to receive for their citizens. Citizens will continue to expect that their concerns and views are important. Using volunteers Another strategy that cities may pursue to deal with budget cutbacks is to encourage volunteerism and to work with established volunteer organizations in their communities. Volunteers may be able to perfonn some city functions at little or no cost to the city. There may be cost savings and/or improvements to quality. In Burnsville, for example, volunteers do office work for the police department, allowing officers to spend more of their shifts on patrol. In Moorhead, unifonned volunteers drive two retired police cars and issue parking tickets. Using volunteers may allow the city to access expertise in specific areas that the community has tò offer and can build community spirit. The challenges of depending on volunteers can involve recruitment difficulties and opposition from city staff. There may also be some costs associated with using volunteers such as staff time spent monitoring volunteers or assigning volunteers to tasks. Cities should consider their staff capacity to manage volunteers. Certain liability issues may also arise when using volunteers to perfonn services. The League's Insurance Trust · provides infonnation regarding these liability concerns. League resources: . Covering the City's Volunteers (pdf) www.lmnc.org/pdfs/volart.pdf . Accident Coverage for City Volunteers (pdf) wwv.'.lmn c. org/p dfs/volacc. pdf City examples: Source: LMC City Achievement Award applications. City examples: Public Safety Burnsville (2002) The city developed the Community Emergency Response Team (CERT) to train citizens to be emergency responders. Funding for the training classes comes from grants and donations. City examples: Parks and Recreation Houston (2002 winner) Citizen volunteers in the city of Houston planned and researched the development of a nature center at the city's park. Local Eagle Scouts provided park development, including a footbridge, tree plantings, and birdhouses. The project was funded with a TEA-21 grant, state DNR funds, · and donations. The city's debt for the project was just over $110,000. 22 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . City examples: General Government Minnetonka (2001 winner) Senior citizens ofMinnetonka approached the city to offer help in processing water and sewer bills. Now, Minnetonka seniors process 5,000 bills each month and save the city the cost of staff hours to do this work. City examples: Miscellaneous Barnesville (2002) The city's Youth Board provides activities and opportunities for youth to give back to their community. The city operates the Youth Alive Center with grants and donations. The young people perform community service projects, such as painting the city hall, fire hydrants, the police station and cleaning the city cemetery. LeRoy (1994 winner) Along with the county sheriff s boys ranch and the Future Farmers of American proj ect, the city's community service personnel led tree-planting throughout the city. Plymouth (2002) The city created a volunteer program to enable volunteers to fulfill assignments throughout city depártments. A volunteer coordinator seeks these assignments and matches volunteers based on . interests and skills. ! . 23 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Consolidation Minnesota cities are granted the authority to consolidate with other cities and/or with townships (MS 414.041). Consolidation is one way that local units can try to save administrative costs and reduce duplication. By combining to form a larger unit of government, small jurisdictions can achieve economies of scale for providing services. In order to pursue consolidation, cities must share a common boundary with at least one of the other cities participating. Norwood and Young America consolidated as Norwood Young America in 1996 and in 2001; Pleasant Lake, Rockville and Rockville Township consolidated as the city ofRockville. These are two recent examples of consolidations involving more than one city. A recent attempt at consolidation of New London and Spicer failed to garner enough votes to pass. In the case of Norwood Young America, the two cities duplicated many services. Each city had its own volunteer fire department, firefighting equipment, ambulance service, and fire station. Within roughly a year of one another, the two cities had each constructed a water tower. Each city had its own clerk and administrator and developed its own comprehensive plan. The referendum on consolidation passed by two-thirds, with many ofthose opposing the merger fearing a loss of community identity. After the merger, citizens are better served and the delivery of services is much more efficient according to the city administrator*. Taxes for residents of the newly created city stayed level for the first five years following merger. In the 2001 merger of Pleasant Lake, Rockville, and Rockville Township, there was broad . support for consolidation as the three local units faced a dramatic increase in development. The one major concern during the merger process was that the rural areas would become over- developed and residents would lose their sense of living in a rural environment. When the three entities merged, new zoning ordinances were established to address that concern so that the new - city could maintain a focus on planned growth. The township had had no regular office hours and the city of RockYille only had two part-time staff members. Following the merger, the city administrator/clerk describes that people are better served because there is a full-time administrator, a maintenance staff, and a finance director, among other city staff!'*. Now, the consolidated city contracts with the county for police services, provides its own fire and snowplowing services, and hires part-time recreation staff. Since the consolidation was relatively recent, residents are sti11learning about the differencespetween running a city and running a township. Concerns about the future ofthe rural areas as well as representation ofthe rural areas remain among citizens. Concerns about changes in tax burdens wi1llikely be at the forefront of any consolidation discussion. If the local units considering consolidation have very different service levels or tax bases, taxpayers may face significant changes in their local tax burden. The statutes governing consolidation allow for a gradual increase in the levy of a city receiving significantly fewer services before consolidation. The gradual increase can take up to six years. The new name of the consolidated city is also an important consideration. Usually, the name of the most populous unit is used, unless a resolution is passed that provides a different name. The consolidation of departments and changes to personnel are also areas that demand thorough study. When . consolidation means political consolidation as well as service consolidation, residents worry about losing local control of and representation in decisions. 25 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities In case studies of the two successful initiatives to consolidate mentioned above, several key . elements clearly contributed to the success. In each case, advisory committees were fonned to analyze what consolidation would mean for city services and citizens were actively involved in the process. There was also a consensus among the involved officials that consolidation was worth pursuing. In the case of Norwood Young America, communication with residents was key. The local newspaper covered each step of the planning process and the work of the advisory committees. Town meetings were held and residents fonned a committee to educate voters about the consolidation initiative. In the Pleasant Lake-Rockville-Rockville Township case, there was a long history of cooperative arrangements among the three local governments. For example, the city of Rockville already provided fire services and the township already provided plowing services to the others. * Conversation with Thomas Simmons, City Administrator for Norwood Young America, 6/13/03 ** Conversation with Verena Weber, City Administrator/Clerk for Rockville, 6/16/03 League resources: . Handbookfor Minnesota Cities: Chapter 2, Change of Boundaries, Status, and Name www.lmnc.org/Iibrary/handbook.cfm City examples: Source: LMC City Achievement Award applications. Norwood and Young America (1996 winner) . Following a 1993 study into the benefits and costs of a merger of the two cities, the cities began phmning for such a merger and a 1995 election made it official. Residents served on issues committees that researched how merger would affect services. Newsletters and town meetings were important steps in the process. Outside consultants were sought for auditing, legal, and organizational questions. Rockville, Pleasant Lake & Rockville Township (2002 winner) These three entities had a history of cooperatively providing services and facilities. For example, , Rockville provided fire services to the other two and the township plowed roads for the two cities. Each entity's comprehensive plan included the goals ofthe other two. Facing a dramatic increase in development in the area, citizens voted to consolidate into one city, Rockville. . 26 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . Other Strategies for Efficiency Purchasing alliances and joint purchasing Local units of government are granted the authority (MS 471.345 subd. 15) to purchase supplies or equipment without going through the competitive bidding process if they form a joint powers agreement to make purchases through a national municipal association's purchasing alliance or cooperative. The purchases under such an agreement must be made ITom more than one supplier on the basis of competitive bids or quotations. A city can also solicit bids on behalf of other cities with which it has a joint powers agreement. One city, for example, can solicit bids for the desired supplies and the other city or cities in the joint powers agreement can purchase items from the supplier without having to go through the bidding process. According to the Legislative Auditor's Best Practices Review in 1999, roughly 100 fire departments, including West Metro (New Hope and Crystal) and Brooklyn Park, are members of the Minnesota Fire Agency Purchasing Consortium. Fire departments can purchase fire equipment for lower prices since the Consortium accepts bids for high-volume purchases. Cities can also take advantage of joint purchasing programs established by other units of government to make purchases of supplies, equipment or materials. The state operates the Cooperative Purchasing Venture (CPV), which allows members that pay an annual fee to make purchases of different supplies under contracts that the state has established through its bidding processes. This kind of purchasing arrangement allows cities to avoid the competitive bidding . process, which can be burdensome, especially for smaller cities. The membership fee for CPV is set at $ 5 o Of or the period from July 1, 2003 to June 30, 2004. Any local unit of government is eligible for membership in the program. Items commonly purchased through CPV have included vehicles, large tractors and trucks, computers, and office supplies. League resources: . Competitžve Bidding Requirements žn Cities (pdf) (includes section on application of joint powers in purchasing) www .1Innc.org/pdfs/ compeíitivebiddingrequirementsincities. pdf Other resources: Minnesota Cooperative Purchasing Venture: www.mmd.admìn.state.mn.us/cpv2.htm City examples: Sources: Legislative Auditor Best Practices; Ramsey County League of Local Governments (RCLLG). Roseville The city offers combined purchasing services to other cities through its IT department. These purchasing services cover network, Internet, software, and hardware. The cities of Little Canada, Lauderdale, Arden Hills, Shoreview, and Mounds View have taken advantage ofthese services through contracts with Roseville. . 27 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities St. Cloud · The City, Stearns County, and the St. Cloud School District jointly purchased software to enable each participant to allow on-line payments on its website. By purchasing the product together, each party was able to save. The local units had a history of working together with technology- the city and school district's shared file server and the technology solutions for the county-city law enforcement center. Technology applications Cities may also consider various teclmology applications to increase the efficiency of city services. Technology can potentially speed up government processes and improve the quality of services. Automating services can save significant staff time. Further, if services are available on-line at any time, citizens may be able to more easily access infonTIation and services. Ina recent example of automating certain processes, a Woodbury police officer has developed a computer system to allow officers to enter infonTIation from traffic accidents and traffic citations into a computer right in their vehicles. The technology is predicted to reduce the time officers spend doing papenvork and reduce clerical staffhours. Cost-saving technologies can include web-based applications and electronic workflow and document management systems. Since many cities already use computer networks and diverse types of software, collaborative agreements to share specialized equipment and software, jointly purchase software, and share network and software specialists can be another strategy for reducing costs and improving service. While the cost to one city of certain technologies might be · prohibitive, several cities acting together in a coalition may be able to purchase software and equipment at more reasonable costs. Geographical Infonnation System (GIS) software and e-commerce software are some examples oftechllologies that may be suitable for group purchase. Cities could also purchase Internet service together. Outsourcing routine infonnation technology functions is another strategy. Cities can avoid the significant costs of hiring individuals with highly specialized computer skills and training or can purchase expensive equipment by contracting with private vendors. As described in the Contracts section above, this may create oversight and contract management costs for the city. In a recent example, Minneapolis outsourced the management of its IT infrastructure to Unisys. The contract covers roughly 100 servers and 2,700 personal computers. There are a couple of specific technology tools available to Minnesota cities. GovOffice is a tool for cities that the League has developed along with private vendors. It is designed to enable cities to create websites and administer them easily and with flexibility. With GovOffice, cities can post infonnation on city services, provide online forums for citizens to submit information and feedback, and conduct opinion polls online. LOGIS, or Local Government Infonnation Systems, enables cities to share in the costs of data processing. It is a consortium of cities through with members can take advantage of hardware and software purchasing services, consultation and planning services, and installation and monitoring services. Members are also able to receive web site hosting and high-speed Internet access. League resources: · . GovOffice \Veb Site Development Tool: www.Imnc.org/services/webforcities.cfm 28 League of Minnesota Cities Resource Guide for DeaJing with Budget Cuts: Strategies for Cities . Other resources: . University of Minnesota Extension Service: Access E-Government Curriculum (guidance for local governments considering e-government services): www.egov.umn.edu . Local Government Information Systems (LOGIS): www.logis.org City examples: Sources: LMC Minnesota Cities magazine; Legislative Auditor Best Practices Reviews; RCLLG; National League of Cities Examples Database. City examples: Public Safety Multiple Jurisdiction Network Project (LMC Minnesota Cities magazine, 1996) The cities of Crystal, Minneapolis, S1. Paul, Maple Grove, Hennepin County, and the Local Government Information Systems consortium formed a committee to find ways to share police information. They developed a data warehousing system and open connectivity standards that allow them to share access to police data. This eliminated the need for officers to call other jurisdictions to check on records of individuals. City examples: General Government Mantorville In order to save time and increase accuracy, the city purchased a software system that allows it to . process utility bills and calculate employee pay, deductions, benefits, and federal reporting. City examples: GIS Cities of Ramsey County Cities in Ramsey County jointly use the data from the county for various projects. Users pay a fee to the County. Winnebago Winnebago and neighboring cities pooled their resources to install a digital land information system. The participating governments can retrieve and share land information more efficiently. The database contains infrastructure and demographic information on 21 municipalities and over 85,000 parcels. A Land Records Council was formed to ensure that each city's needs are met by the system. City examples: Miscellaneous Duluth Duluth used software to archive documents and store old records electronically. This freed up significant amounts of storage space and allowed city staff to access files more quickly. Staff could also search the electronic documents by index number, vendor name, account number or keyword. . St. Louis Park (LMC Minnesota Cities magazine, 1994) In order to automate the process of collecting recycling participation information, the city's Management Information Systems office used the Geographic Information System (GIS) and bar 29 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities code technology. The customer routes for recycling customers were mapped out using GIS and · recycling containers were bar coded so that the collectors could scan them. This eliminated time- consuming work to manually track who had recycled what. The City used the technology to target low-participating neighborhoods with additional information about recycling efforts. · · 30 League of Minnesota Cities Resource Guide for Dealing with Budget Cuts: Strategies for Cities . . - - Vt!þPlÚlltl!ld 01 PuIJic SeJuJiee AIRPORT PUBLIC WORKS DEPARTMENT PUBLIC UTILITIES 1550 - 45th Avenue S.E. Engineering Water Utility SI. Cloud, MN 56304 400 - 2nd Street South 1000 - 5th Avenue North SI. Cloud, MN 56301 SI. Cloud MN 56303 .RK DEPARTMENT o - 2nd Street South Operation and Maintenance Wastewater Utllfty St. Cloud, MN 56301 1200 - 15th Avenue S.E. 525 - 60th Street South St. Cloud, MN 56304 SI. Cloud MN 56301 Hydroelectric Utility 8 - 11th Street South SI. Cloud, MN 56301 October 20, 2003 Mayor Larry Hosch City of St. Joseph PO Box 372 St. Joseph, MN 56374 RE: Annual Review of Costs Dear Mayor Hosch: The Sewer Use Agreement states that the St. Cloud Public Utilities will provide your City with an annual review of unit costs. The enclosed infonnation is presented to satisfy that . stipulation. ' The budget figures used for 2004 have not been approved by the City Council as of this date. Ifthe Council adopts the budget as presented, the enclosed unit charges will become effective January 1,2004. If there are changes after council adoption of the budget, we will provide you with corrected data. As stated in previous yearly reports, there are two outstanding bonds for the main lift station and biosolids storage facilities. The combined principal and interest payments are shown in Category A Debt Service. Please contact me if you have any questions regarding any of the enclosed items. SinçeI.ely, ~/ " / , ' ,A? ' B ?i;?z.¿'r'Ø4'/é¡.~~~--' Kenneth H. Robinson Director of Public Utilities c Mayor John D. Ellenbecker, City of St. Cloud Chris Hagelie, City Administrator John Nonnan, Finance Director - Steve Gaetz, Public Services Director ~ htlp:/Icl.stcloud.mn. us The City of 51. Cloud, Minnesota will not discriminate on the basis 01 race, color, creed, religion, national origin, sex, disability, age, marital status. status with regard to public assistance, familial status or sexual orientation. Upon request, accommodation wiil be provided to allow individuals with disabilities to participate in all city services, programs and activities. · Development of Cateaorv Unit Charaes . St. Joseph 2004 Budget: Cat. A - Debt Service $714,900 Cat. E - 0, M & R $2,489,035 Flow and Loading to WPCF: Flow: 3,869,000 (1000 gallons) CBOD: 42779 (100 Ibs.) TSS: 50490 (100 Ibs.) Cat. A - Flow: 714900 x 33.3% = $ 0.062 /1000 gals. 3,869,000 (1000 gallons) CBOD: 714900 x 33.3% = $ 5.570 /100 Ibs '. 42779 (100 Ibs.) TSS: 714900 x 33.3% = $ 4.720 /100 Ibs 50490 (100 Ibs.) Cat. E - Flow: 2489035 x 33.3% = $ 0.214 /1000 gals. 3,869,000 (1000 gallons) CBOD: 2489035 x 33.3% = $ 19.395 /100 Ibs 42779 (100 Ibs.) TSS: 2489035 x 33.3% = $ 16.433 /100 Ibs 50490 (100 Ibs.) Per Contract -- $1,800 for General City Administration - ~ . COMPARISON OF UNIT CHARGES 2003-2004 STJOSEPH 2003 Budqet 2004 Budqet Category A $722,350 $714,900 Category E $2,523,500 $2,489,035 2003 Unit Charqes 2004 Unit Charqes Category A - Flow $ 0.068/1000 gals. $ 0.062/1000 gals. CBOD $ 6.219/100 Ibs. $ 5.570/100 Ibs. TSS $ 5.009/100 Ibs. $ 4.720/100 Ibs. . Flow $ 0.239/1000 gals. $ 0.214/1000 gals. Category E - CBOD $ 21.725/100Ibs. $ 19.395/100 Ibs. TSS $ 17.500/100Ibs. $ 16.433/100 Ibs. - -