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HomeMy WebLinkAbout07.05.22 CITY OF ST. JOSEPH www.cityofstjoseph.com 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 St. Joseph City Council July 5, 2022 6:00 PM **The City Council meeting will be conducted in-person in the council chambers of the St. Joseph Government Center. Members of the public can attend in-person or via Zoom. Zoom attendees wanting to speak during item 2. Public Comments, contact City Clerk Kayla Klein (320) 229-9421, kklein@cityofstjoseph.com by noon on the day of the meeting. This will ensure that you will be heard at the appropriate time during the meeting.** Join Zoom Meeting https://us06web.zoom.us/j/82125448629?pwd=MGpXa2RQVnhVMjB6QkdyZFhhMG1Pdz09 Meeting ID: 821 2544 8629 Passcode: 133101 One tap mobile +19292056099,,87352747456#,,,,*182736# US (New York) +13017158592,,87352747456#,,,,*182736# US (Washington DC) Dial by your location +1 929 205 6099 US (New York) +1 301 715 8592 US (Washington DC) +1 312 626 6799 US (Chicago) +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) 1. 6:00 PM Call to order - Pledge of Allegiance 2. Public Comments Up to 3 speakers will be allowed for up to 3 minutes each to address the council with questions/concerns/comments (regarding an item NOT on the agenda). No Council response or action will be given/taken other than possible referral to Administration. 3. Approve Agenda 4. Consent Agenda a. Bills Payable – Requested Action: Approve Check Numbers 059197-059246, Account Payable EFT #002061; Payroll EFT 112255-112260, Regular Pay Period 13 and 13.01. b. Approval of Fire Study – Requested Action: Approve Personal Service Contract with Emergency Services Consulting International (ESCI) as proposed. c. Fire Department – PERA, Request for Cost Analysis – Requested Action: Approve cost analysis for PERA for the St. Joseph Fire Department. d. Equipment Certificate Reimbursement Declaration – Requested Action: Adopt Exhibit A, the Declaration of Intent to reimburse costs relating to the general capital equipment with future certificate proceeds. e. Loader Replacement – Requested Action: Approve the purchase of a John Deere 544H loader with plow and wing. f. Election Judge Appointments – Requested Action: Appoint Election Judges for the August 9th Primary Election and November 8rd General Election and authorize the City Clerk the ability to assign additional judges to be trained and assigned, if necessary. 5. Public Hearing, Proposed Property Tax Abatement – Community Center Bonds 6. Tammy Omdal, 2022A Bond Issue 7. City Photos CITY OF ST. JOSEPH www.cityofstjoseph.com 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 8. Engineer Reports a. Morningside Acres Drainage Study b. MnDOT Master Partnership Contract 9. Mayor Reports 10. Adjourn Council Agenda Item 4a MEETING DATE: July 5, 2022 AGENDA ITEM: Bills Payable SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: See below BACKGROUND INFORMATION: The council approved staff to make the following payments through the payroll contracts, regular monthly invoices with due dates prior to the next scheduled council meeting, or actions taken at previous council meetings. The information here is to provide you all checks and electronic payments made for verification of the disbursement completeness. BUDGET/FISCAL IMPACT: Bills Payable – Checks Mailed Prior to Council Approval Regular PP 13, 13.01 $55,604.34 Payroll EFT #112255 - #112260 $59,084.01 Account Payable EFT #002061 $3,448.94 Check Numbers #059197 - #059 219 $53,066.28 Total $171,203.57 Bills Payable – Checks Awaiting Council Approval Check Numbers #059220 - #059246 $16,009.95 Total $16,009.95 Total Budget/Fiscal Impact: $187,213.52 Various Funds ATTACHMENTS: Bills Payable – Checks Mailed Prior to Council Approval REQUESTED COUNCIL ACTION: Approve the bills payables as presented. Check#Date Search Name Comments Amount FUND DEPART OBJ ACH 29-Jun-22 PAYROLL Regular PP 13, 13.01 $55,604.34 002061 6/24/2022 SENTRY BANK-CREDIT CARD Security Bit Set $15.99 101 41942 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Chemicals - WTP 1 $143.43 601 49420 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Chemicals - WTP 1 $40.08 601 49420 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Styrofoam Cups $2.29 601 49421 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Reward Points Redeemed ($200.00)101 41430 36300 002061 6/24/2022 SENTRY BANK-CREDIT CARD Light Bulbs $59.97 602 49480 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Quick Grip C Clamp $19.98 601 49440 240 002061 6/24/2022 SENTRY BANK-CREDIT CARD New Locks for Bike Share Bikes $1,460.00 101 45201 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Bleach $12.18 602 49480 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Supplies - Summer Rec Soccer $234.25 101 45204 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Hunter Head, Hose Saddle, Kwikseal $52.11 101 45202 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Quick Release Clamps for Flower Hangers $82.52 101 43120 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD #92 - Fuel (Speedway Card Denied - Over Limit)$171.49 101 45202 235 002061 6/24/2022 SENTRY BANK-CREDIT CARD Bleach $17.18 101 45202 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Poly 1" Coupling $3.58 101 45202 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Bulk Fasteners $12.01 101 45201 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD SJPD Pre-paid Envelopes $352.50 101 42120 322 002061 6/24/2022 SENTRY BANK-CREDIT CARD Bessey C Clamp $13.98 601 49440 240 002061 6/24/2022 SENTRY BANK-CREDIT CARD Velcro $4.59 101 45201 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD High Temp Grease $59.80 101 43120 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Ballast $22.99 101 45202 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Bulk Fasteners $5.45 101 45201 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Hole Saw, Couplng $30.51 101 45202 240 002061 6/24/2022 SENTRY BANK-CREDIT CARD Metal & Masonry Cutting Wheels $30.68 101 45201 240 002061 6/24/2022 SENTRY BANK-CREDIT CARD Cutoff Blade $21.75 101 45201 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Trash Bags, Plug $16.58 101 45202 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Taser Class Cancelled - J. Luethmers ($375.00)101 42120 171 002061 6/24/2022 SENTRY BANK-CREDIT CARD Coax Cable, Coax Adapter $55.16 101 45201 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Marking Wand/Paint - Summer Rec Soccer $64.47 101 45204 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Soap, Bags $25.97 101 45202 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Battery $14.98 101 45202 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Weed/Grass Killer $117.82 101 45202 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Stencil Court - Summer Rec Basketball $48.42 101 45201 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Rubber Tee Bats; Bas Set - Summer Rec T-ball $129.10 101 45204 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Training Supplies - Summer Rec T-ball $43.00 101 45204 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Filter Hose Washer $3.99 101 45201 220 002061 6/24/2022 SENTRY BANK-CREDIT CARD Air Freshner $5.97 101 45202 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Lunchroom Paper Plates $32.67 101 41942 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Annual Amazon Prime Membership $139.00 101 41430 433 002061 6/24/2022 SENTRY BANK-CREDIT CARD Uniform Cleaning - Dwight Pfannenstein $28.64 101 42120 171 002061 6/24/2022 SENTRY BANK-CREDIT CARD Trail Camera for Schneider Field (5/17/22 - 6/16/22)$10.75 101 42120 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD #17 - Fuel (Speedway Card Denied Over Limit)$198.87 101 43120 235 002061 6/24/2022 SENTRY BANK-CREDIT CARD GoJo Wipes for Fingerprinting $78.68 101 42120 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Ice Mountain Bottled Water $5.52 101 41942 210 002061 6/24/2022 SENTRY BANK-CREDIT CARD Mo. Beacon $1.00 101 41430 300 002061 6/24/2022 SENTRY BANK-CREDIT CARD Mo. Zoom $16.02 101 41950 215 002061 6/24/2022 SENTRY BANK-CREDIT CARD Mo. Adobe - Bartlett, Wenner-Roth $36.57 101 41530 300 002061 6/24/2022 SENTRY BANK-CREDIT CARD Mo. Adobe - Klein, Haffner $36.57 101 41430 300 002061 6/24/2022 SENTRY BANK-CREDIT CARD Mo. Adobe - Keller $18.29 101 41910 300 002061 6/24/2022 SENTRY BANK-CREDIT CARD Flashlight Battery - Matt Johnson $26.59 101 42120 171 112255 6/29/2022 SENTRY BANK HSA w/h Reg PP 13 (2nd Half 2022 ER Contrib)$22,950.00 101 21715 112256 6/29/2022 EFTPS FICA w/h Reg PP 13, 13.01 $8,461.48 101 21703 112256 6/29/2022 EFTPS Fed w/h Reg PP 13, 13.01 $7,298.18 101 21701 112257 6/29/2022 COMMISSIONER OF REVENUE State w/h Reg PP 13 $3,320.19 101 21702 112258 6/29/2022 PERA PERA w/h Reg PP 13, 13.01 $15,129.16 101 21704 112259 6/29/2022 VOYA FINANCIAL Deferred Comp w/h Reg PP 13 $1,675.00 101 21705 112260 6/29/2022 AMERICAN FUNDS 529 Svgs w/h Reg PP 13 $250.00 101 21705 EFT Total $118,137.29 CITY OF ST JOSEPH EFT's & Payroll - Paid Prior To Council Approval Check#Date Search Name Comments Amount FUND DEPART OBJ 059197 6/24/2022 BANYON DATA SYSTEM UB Meter Swap File Md $297.50 602 49490 215 059197 6/24/2022 BANYON DATA SYSTEM UB Meter Swap File Md $297.50 601 49490 215 059198 6/24/2022 BATTERY WHOLESALE, INC.# 5 - Firefighter Flashlight Battery $6.83 105 42220 210 059199 6/24/2022 BONACCI, DOMINIC Parts for Pressure Washer (Northern Tool)$75.32 105 42220 210 059199 6/24/2022 BONACCI, DOMINIC Parts for Pressure Washer (Northern Tool)$49.91 105 42220 210 059200 6/24/2022 CENTRACARE Pre-empl Physical - C. Palmer $238.00 105 42210 305 059200 6/24/2022 CENTRACARE Pre-empl Physical - T. Salzer $263.00 105 42210 305 059200 6/24/2022 CENTRACARE Pre-empl Physical - C. Holland $318.00 105 42210 305 059200 6/24/2022 CENTRACARE Respiratory Assessment - C. Pallmer $135.00 105 42210 305 059200 6/24/2022 CENTRACARE Pre-empl Physical - C. Staneart $348.00 105 42210 305 059200 6/24/2022 CENTRACARE Spirometry Test - T. Salzer $55.00 105 42210 305 059200 6/24/2022 CENTRACARE Pre-empl Screens - New Members $246.00 105 42210 305 059201 6/24/2022 CENTRAL MCGOWAN, INC Medical Oxygen $30.25 101 42120 210 059201 6/24/2022 CENTRAL MCGOWAN, INC Medical Oxygen $30.26 105 42270 210 059202 6/24/2022 CLEARGOV INC.Budget Software Renewal - 6/01/22 - 5/31/23 $7,000.00 101 41530 215 059203 6/24/2022 COLLEGE & MINNESOTA, LLC Concrete Porch Addition - BFA Grant (109 Ash St W)$1,000.00 150 46500 588 059203 6/24/2022 COLLEGE & MINNESOTA, LLC Door & Window Set - BFA Grant (109 Ash St W)$2,000.00 150 46500 588 059204 6/24/2022 CUSTOMIZED FIRE RESCUE TRAIN FF1, FF2, Haz Mat Traiining - Jack Taufen $1,370.00 105 42240 443 059205 6/24/2022 DAMA COMPANY Dama Boxes $2,405.00 105 42220 210 059206 6/24/2022 GALLS, INC Dress Vest - N. Vossen $270.00 101 42120 171 059206 6/24/2022 GALLS, INC BVP Program - ARA-Shock Plate - N. Vossen $61.56 101 42120 171 059206 6/24/2022 GALLS, INC All-weather Pen - E. Brutger $20.97 101 42120 171 059206 6/24/2022 GALLS, INC BVP Program - Ballistic Package - N. Vossen $1,016.92 101 42120 171 059206 6/24/2022 GALLS, INC Rotating Sidebreak Scabbard - Matt Johnson $41.48 101 42120 171 059206 6/24/2022 GALLS, INC Credit - Radio Holder, Duty Holster - N. Gossen ($193.80)101 42120 171 059206 6/24/2022 GALLS, INC ATAC Boot $110.00 101 42120 171 059207 6/24/2022 HOFFMAN, JUNE May & June 2022 - Fire Hall Cleaning $90.00 105 42281 300 059208 6/24/2022 MARCO, INC Admin SHARP Copier - 5/10/22 - 6/10/22 $503.38 101 41430 210 059208 6/24/2022 MARCO, INC Admin KONICA Copier - 5/10/22 - 6/10/22 ($322.73)101 41430 210 059208 6/24/2022 MARCO, INC Admin KONICA Copier - 6/10/22 - 7/10/22 $428.38 101 41430 210 059209 6/24/2022 O REILLY AUTO PARTS Unit #4 Repairs $52.47 105 42260 230 059209 6/24/2022 O REILLY AUTO PARTS Unit #4 Repairs $45.98 105 42260 230 059209 6/24/2022 O REILLY AUTO PARTS Unit #4 Repairs $78.09 105 42260 230 059210 6/24/2022 OFFICE DEPOT Toner Cartridge $55.45 601 49490 200 059210 6/24/2022 OFFICE DEPOT Writing Pads $19.89 101 41430 200 059210 6/24/2022 OFFICE DEPOT Toner Cartridge $55.44 602 49490 200 059210 6/24/2022 OFFICE DEPOT Toner Cartridge, Address Labels $90.43 101 41430 200 059210 6/24/2022 OFFICE DEPOT Toner Cartridge $55.44 603 43230 200 059211 6/24/2022 PRECISE REFRIGERATION INC Vacuum Breaker Replacement/Labor $176.92 105 42280 220 059212 6/24/2022 QUADIENT POSTAGE FUNDING Postage Machine Refill $500.00 101 41430 322 059213 6/24/2022 SEH, INC Sanitary Sewer $102.50 602 49450 303 059213 6/24/2022 SEH, INC Morningside Drainage/Storm Water/MS4-GIS Updates $600.50 651 49900 303 059213 6/24/2022 SEH, INC Parks/Trails General $306.60 101 45202 303 059213 6/24/2022 SEH, INC Rivers Bend 4 Development $4,017.30 101 43131 303 059213 6/24/2022 SEH, INC Jade Road Event Center $1,019.70 101 43131 303 059213 6/24/2022 SEH, INC Trobecs Bus $957.00 101 43131 303 059213 6/24/2022 SEH, INC Addressing/CIP/MSAS General $964.16 101 43131 303 059213 6/24/2022 SEH, INC APO $205.00 101 43131 303 059213 6/24/2022 SEH, INC 2021 Street & Utility Improvement $14,703.92 411 43120 530 059213 6/24/2022 SEH, INC 2022 Sstreet Improvements $2,512.50 415 43120 530 059213 6/24/2022 SEH, INC Old Fire/Police Hall Plat - Stake Lot $735.42 101 41910 303 059213 6/24/2022 SEH, INC Wellhead Protection Plan WHPP $591.50 601 49434 303 059214 6/24/2022 ST. CLOUD AREA PLANNING ORG. 2nd Half 2022 Member Assessment $3,574.50 101 41110 433 059215 6/24/2022 ST. CLOUD TIMES Notice of Public Hearing - 2022 Street Impr - Proposed $371.05 415 43120 530 059215 6/24/2022 ST. CLOUD TIMES Notice of Public Hearing - Trobec's Abatement $232.58 150 46500 300 059215 6/24/2022 ST. CLOUD TIMES City Storm Water Permit Notice $62.53 651 49900 340 059215 6/24/2022 ST. CLOUD TIMES Notice of Public Hearing - Special Event Permits - Sal's $73.27 101 41430 340 059216 6/24/2022 ST. JOSEPH NEWSLEADER, INC 2021 TIF Report Summary $39.60 159 46500 340 059216 6/24/2022 ST. JOSEPH NEWSLEADER, INC 2021 TIF Report Summary $39.60 157 46500 340 059216 6/24/2022 ST. JOSEPH NEWSLEADER, INC 2021 TIF Report Summary $39.60 153 46500 340 059216 6/24/2022 ST. JOSEPH NEWSLEADER, INC 2021 TIF Report Summary $79.20 150 46500 340 059217 6/24/2022 THE BRIDGE-WORLD LANGUAGE CTR.Multilingual Teleconferencing $104.00 101 42120 210 059218 6/24/2022 TIREMAXX SERVICE CENTERS Unit #704 - Tire Installation Package $949.08 101 42152 230 059218 6/24/2022 TIREMAXX SERVICE CENTERS Unit #705 - Oil Change & Tire Rotation $64.42 101 42152 230 059219 6/24/2022 UNUM LIFE INSURANCE July 2022 - Disability Insurance $1,398.91 101 21713 CITY OF ST JOSEPH Bills Payable – Paid Prior To Council Approval Check#Date Search Name Comments Amount FUND DEPART OBJ CITY OF ST JOSEPH Bills Payable – Paid Prior To Council Approval Total Bills Payable - Mailed Prior to Council Approval $53,066.28 Check#Date Search Name Comments Amount FUND DEPART OBJ 059220 6/29/2022 AFSCME COUNCIL 65 July 2022 Federation Dues $653.95 101 21707 059221 6/29/2022 ALEX AIR APPARATUS, INC Annual Compressor Air Quality Test $787.01 105 42220 300 059222 6/29/2022 BEE LINE SERVICE, INC.#35 - Test and Install Fuel Switch $149.48 602 49450 230 059223 6/29/2022 BRAUN INTERTEC 2021 Street Improvements - Services thru 6/3/2022 $5,316.00 411 43120 530 059224 6/29/2022 BRUNO PRESS July 2022 CVB Marketing $750.00 220 46500 300 059225 6/29/2022 CENTRAL MCGOWAN, INC Medical Oxygen $30.76 105 42270 210 059225 6/29/2022 CENTRAL MCGOWAN, INC Medical Oxygen $30.75 101 42120 210 059226 6/29/2022 CENTRAL MOTORCAR SPECIALTIES #29 - Replace Tommy Gate Spring $163.75 101 45202 230 059227 6/29/2022 COLD SPRING CO-OP Lawn Seed $374.50 101 45202 210 059228 6/29/2022 DEZURIKS PORTABLE BLACK SIGN Sign Rental 5/17/22-6/17/22 - Firefighters Wanted Advertising $350.00 105 42210 340 059228 6/29/2022 DEZURIKS PORTABLE BLACK SIGN Sign Rental 4/17/22-5/17-22 - Firefighters Wanted Advertising $350.00 105 42210 340 059229 6/29/2022 DVS RENEWAL #705 - Registration Renewal $29.75 101 42152 446 059230 6/29/2022 FLEET SERVICES May 2022 Squad Lease #10186 $643.55 101 42152 414 059231 6/29/2022 GALLS, INC Glock Training Gun $55.20 101 42120 210 059232 6/29/2022 HOFFMAN, JUNE Fire Hall Cleaning - Additional June 2022 $30.00 105 42281 300 059233 6/29/2022 JACOBSON, KEN Kitchen Utensils - Community Room (Dollar General)$44.13 105 42281 210 059234 6/29/2022 LAW ENFORCEMENT LABOR July 2022 Federation Dues $650.00 101 21707 059235 6/29/2022 MSFDA MEMBER BENEFITS 2022 Membership Dues $290.00 105 42240 433 059236 6/29/2022 MVTL LABORATORIES, INC Wastewater Testing $461.00 602 49480 312 059237 6/29/2022 NORTHLAND BUSINESS Surveillance Camera Contract 7/22/22-7/21/23 $2,094.75 101 42151 321 059238 6/29/2022 O REILLY AUTO PARTS # 26, #27, #29 - Oil Filters $23.55 101 43120 230 059239 6/29/2022 PAT SCHNEIDER SALES T-shirts/Screen Print - Youth Programs $622.55 101 45204 210 059240 6/29/2022 POWERHOUSE OUTDOOR EQUIP Cutting Wheel for Gas Cut Off Saw $257.59 101 43120 240 059241 6/29/2022 QUADIENT LEASING 3rd Qtr 2022 Postage Machine Lease $47.66 603 43230 410 059241 6/29/2022 QUADIENT LEASING 3rd Qtr 2022 Postage Machine Lease $47.67 101 41430 410 059241 6/29/2022 QUADIENT LEASING 3rd Qtr 2022 Postage Machine Lease $47.66 601 49490 410 059241 6/29/2022 QUADIENT LEASING 3rd Qtr 2022 Postage Machine Lease $47.66 602 49490 410 059242 6/29/2022 SHIFT TECHNOLOGIES, INC.Fire Chief Remote Issue $370.00 105 42210 215 059243 6/29/2022 SILENT RUN ADVENTURES Deposit - Jan 2023 Event $750.00 101 45204 308 059244 6/29/2022 SPECTRUM SUPPLY Case of Paper Towels $36.89 105 42280 210 059245 6/29/2022 SPEEDWAY June 2022 Motor Fuel $55.47 101 45202 235 059245 6/29/2022 SPEEDWAY Excise Tax Credit ($3.30)601 49440 235 059245 6/29/2022 SPEEDWAY Excise Tax Credit ($3.31)101 45202 235 059245 6/29/2022 SPEEDWAY Excise Tax Credit ($3.31)101 43120 235 059245 6/29/2022 SPEEDWAY Excise Tax Credit ($3.30)602 49450 235 059245 6/29/2022 SPEEDWAY Excise Tax Credit ($15.32)101 42152 235 059245 6/29/2022 SPEEDWAY June 2022 Motor Fuel $55.47 602 49450 235 059245 6/29/2022 SPEEDWAY June 2022 Motor Fuel $55.47 601 49440 235 059245 6/29/2022 SPEEDWAY June 2022 Motor Fuel $55.47 101 43120 235 059245 6/29/2022 SPEEDWAY June 2022 Motor Fuel $305.80 101 42152 235 059246 6/29/2022 WOLF, CRAIG 2022-618 - Compost Overpayment Refund $5.00 603 00000 3200 Total Bills Payables - Waiting Council Approval $16,009.95 EFTs & Payroll 118,137.29 Bills Paid Prior to Council 53,066.28 Bills Waiting for Council 16,009.95 Total Bills Payable 187,213.52 Summary: CITY OF ST JOSEPH Bills Payable – Checks Not Mailed Awaiting Council Approval Council Agenda Item 4b MEETING DATE: July 5, 2022 AGENDA ITEM: Fire Study SUBMITTED BY: Administration STAFF RECOMMENDATION: Approve Fire Study PREVIOUS COUNCIL ACTION: The council has discussed completing a regional fire study at previous city council work sessions/meetings and approved this expense in the 2022 budget. BACKGROUND INFORMATION: The City Administrator and Fire Chief have been working with the area cities of Waite Park, Sartell and St. Cloud to complete a regional fire study. The purpose of the study will be to complete a review of the fire service needs in each community and provide recommendations on how to address challenges. The study will also look at opportunities for shared services between the cities. The recommendation is to is work with Emergency Services Consulting International (ESCI). The total cost of the proposal is $60,177 with each participating city contributing equally in the cost. St. Cloud’s fire department has agreed to be the fiscal agent given they have more staffing resources. BUDGET/FISCAL IMPACT: $15,044.25 budgeted – Fund 390 ATTACHMENTS: ESCI Personal Service Contract REQUESTED COUNCIL ACTION: Approve Personal Service Contract with ESCI as proposed. PERSONAL SERVICES CONTRACT This agreement made this day of 2022, by and between City of St. Cloud, Minnesota acting as Agent for Partners City of Sartell, City of Waite Park, City of St. Joseph, and City of St. Cloud and Emergency Services Consulting International doing business as an Oregon corporation in Wilsonville, Oregon, hereinafter called ESCI. WITNESSETH: For and in consideration of the payment, agreements, and scope of work herein attached as Attachment A to be made and performed, Agent and ESCI hereby agree to commence and complete the consultation, to provide the work described for the four partnering agencies and comply with the terms of the contract to conduct a Cooperative Services Study. 2.ESCI will furnish labor, materials, and other services necessary to complete the Project for the Partners as listed above, and Partners shall provide to ESCI the information, data, and assistance required as specified in the attached scope of work. 3.Fees: The Agent on behalf of the Partners shall pay ESCI a sum not to exceed Sixty Thousand One Hundred Seventy- Seven Dollars ($60,177) including expenses. Agent shall pay ESCI according to the following schedule: A.10% due at contract signing B.Monthly payments as work progresses C.Payment shall be made within 30 days of receipt of invoice 4.Partnership Share: The four Partner cities listed above (City of Sartell, City of Waite Park, City of St. Joseph, and City of St. Cloud) shall be equal Partners in the Project and shall each be billed for 25% of the project total by the Agent (City of St. Cloud) who shall act on their behalf as the Agent with respect to the provisions of this Agreement. 5.This agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 6.The laws of Minnesota shall govern this agreement. 7.ESCI shall comply with all federal, state, and local laws applicable to the work under this agreement. 8.Termination. Agent may terminate this agreement for any reason upon thirty (30) days written notice to ESCI. Payment for all work completed and expenses incurred up to the time of termination shall be due immediately upon termination by Agent. 9.Amendment. This agreement may be amended by mutual written agreement of all parties. 10.Independent Contractor. ESCI is engaged as an independent contractor and will be responsible for any federal or state taxes applicable to the payments under this agreement. ESCI is not currently employed by Agent and will not be under the direct control of Agent. Because ESCI is an independent contractor, Agent will not be liable for any tax withholding, social security payments, state workers’ compensation insurance, unemployment insurance, retirement system payments, or other similar expenses normally payable on behalf of employees of Agent. 11.Indemnification. ESCI agrees to indemnify, defend, and hold harmless Agent and its officers, agents and employees, from and against any and all claims, losses, actions, or judgments for damages or injury to persons or property arising out of or in connection with the acts and/or any performances or activities of ESCI, ESCI’s agents, employees, or representatives under this Agreement. 12.Attorney Fees. If suit, action, or arbitration is brought either directly or indirectly to enforce the terms of this agreement, the prevailing party shall recover, and the losing party hereby agrees to pay, reasonable attorney’s fees incurred in such proceeding, in the trial and appellate courts, as well as costs and disbursements as ordered by a court of competent jurisdiction. 13. This agreement is an integrated writing, executed by the parties after negotiation and discussions of all material provisions. None of the parties to this agreement have relied upon inducements, concessions, or representations of fact, except as set forth in this agreement. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, the agreement in two (2) copies, each of which shall be deemed an original, on the first date written above. City of St. Cloud, Minnesota (Agent on behalf of equal Partners City of Sartell, City of Waite Park, City of St. Joseph, and City of St. Cloud) By: Title: Date: Signature Emergency Services Consulting International By: Title: Date: Signature Emergency Services Consulting International Providing Expertise and Guidance that Enhances Community Safety Attachment A Scope of Work Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota Project Understanding The Cities of Sartell, Waite Park, St. Joseph and St. Cloud, Minnesota wish to retain an outside consultant experienced in the provision of fire protection services to evaluate the benefits and risks of increased cooperation and opportunities for shared services between the four municipal fire agencies. Each of the municipalities is facing growth pressures from residential through commercial and industrial growth and changing risk profiles will increase fire protection service demand. Several of the departments are faced with increasing staffing pressures due to volunteer recruitment and retention issues. The equal partners in this study are looking for alternatives to the status quo that will provide optimal service levels across the service area with an equitable distribution of resources and costs that are sustainable well into the future. EMS first response service is currently provided by the Sartell and Waite Park police departments in their respective cities which is placing increased demand on them as EMS call volume continues to climb. The study should also examine options that will decrease duplication of services. While one scenario may be full consolidation, the study is designed to address many options from the end members of a status quo option through a fully consolidated system. Various potential options will be analyzed exploring advantages, disadvantages, and opportunities of each. The study will begin with an examination of each agency in detail followed by an analysis of each available option and will focus on improving efficiency and effectiveness of service delivery throughout the St. Cloud Metro Area study area considering the challenges posed by the growing communities. Specific issues of concern that will be addressed in the study include, but are not limited to the following:•Laws impacting formation of a new, single district •Steps involved in district formation •Tax rate that should be considered under various service level scenarios •Potential offset to current city tax rates under new district •Asset allocation between partners (facilities, land, apparatus, and equipment) •Governance structure(s) under alternative scenarios •Organizational structure under alternative scenarios •Process for fire code administration •Delineation of all assumptions used in various scenarios •Impact of growth on resources needed •Staffing model under various scenarios to include cost •Service level variations by zone in potential new district and impact on staffing needs •Potential for cost savings •Revenue and expense projections for five years for various service level scenarios •Short-, Mid-, and Long-Range financial impacts on each partner of consolidated/merged entity to include cost allocation models and funding alternatives •Additional support needs of new district and timeline for implementation Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota Cooperative Services Feasibility Study – Scope of Work Phase I: Project Initiation and Site Visit Task 1-A: Project Initiation & Work Plan Development ESCI will develop a project work plan based on the scope of work and converse with the project team to gain a comprehensive understanding of the background, goals, and expectations for the project. This work plan will be developed, identifying: •Primary tasks to be performed •Person(s) responsible for each task •Timetable for each task to be completed •Method of evaluating results •Resources to be utilized •Possible obstacles or problem areas associated with the accomplishment of each task This project initiation meeting will establish working relationships, make logistical arrangements, determine lines of communication, and finalize contractual arrangements. Other agenda items will include data collection, interview plan and tentative schedule, interim milestones, meetings, deliverables, and transfer of pertinent reports and background material. ESCI proposes an iterative approach to vet project findings and conclusions which will involve virtual meetings with the client project team throughout the process. These meetings may be scheduled on a biweekly or other basis as preferred by the client team to provide adequate opportunity for feedback. Task 1-B: Acquisition & Review of Background Information ESCI will request pertinent information and data from the project manager. Similar data will be requested from each of the four parties to the study. This data will be used extensively in the development and analysis of fire service alternatives. The documents and information relevant to this project will include, but not be limited to, the following: •Past or current studies, research, or reports including 2020 ESCI St. Cloud Master Plan •City Comprehensive Plan documents, including current and future land use information •Local census and demographic data •Zoning maps and zoning codes •Financial data, including debt information, long-range financial plans, and projections •Department administrative policies and procedures •Standard Operating Guidelines (SOGs) and service delivery practices •Current service delivery objectives and targets •Facility and apparatus inventories •Automatic and mutual aid agreements •Records management data, including National Fire Incident Reporting System (NFIRS) incident data •Computer-Aided Dispatch (CAD) incident records •Local Geographic Information Systems (GIS) data, where available Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota Task 1-C: Site Visit & Stakeholder Input The ESCI project team will perform a site visit to gather information about each department and respective community served and to conduct interviews with key personnel, including: •Elected or appointed officials of the four cities •Fire department chief officers, managers, and other key staff •City finance directors/managers and/or accounting service providers •City planning staff •City human resource directors/managers •Employee groups •Volunteer groups •External fire and EMS agencies adjacent to the study area •Medical facilities, EMS medical director •Others that may contribute to the project The project team will interview key stakeholders of any organization that may be associated with this study. At a minimum, members of the project team will interview appropriate community officials, fire department officials, and others that the project team deems necessary. From these interviews, ESCI will obtain additional perspectives on operational, financial, and policy issues facing each study participant as they relate to the provision of fire, rescue, and EMS services. Phase II: Baseline Agency Evaluations The initial phases of the study focus on baseline assessments of the current organizational conditions for each agency and current service performance. ESCI will conduct organizational reviews of each department based on the elements included in the following tasks. The purpose of this evaluation is to assess agency operations in comparison to industry standards and best practices, as well as to create a benchmark against which the options for future service delivery can be measured. Task 2-A: Organizational Overview An overview of each organization and community will be developed discussing: •Service area population and demographics •History, formation, and general description of the fire department •Description of the current service delivery infrastructure •Governance and lines of authority •Foundational policy documents •Organizational design •Operating budget, funding, fees, taxation, and financial resources Task 2-B: Management Components Each department’s basic management processes will be reviewed, including: •Mission, vision, strategic planning, goals, and objectives •Internal assessment of critical issues •Internal assessment of future challenges •Internal and external communications processes Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota • Document control and security • Reporting and recordkeeping • Information technology systems Task 2-C: Capital Assets and Capital Improvement Plans ESCI will review status of current major capital assets (facilities and apparatus) and analyze needs relative to the existing condition of those assets and their viability for continued use in future service delivery, including: Facilities – Tour and make observations in areas related to station efficiency and functionality. Items to be contained in the report include: • Design • Code compliance • Construction • Staff facilities • Safety • Efficiency • Environmental issues • Future viability Apparatus/Vehicles – Review and make observations regarding inventory of apparatus and equipment. Items to be reviewed include: • Age, condition, and serviceability • Distribution and deployment • Maintenance • Regulatory compliance • Future needs Task 2-D: Staffing and Personnel Management ESCI will review each department’s staffing levels. Areas to be considered include: • Review and evaluate administration and support staffing levels • Review and evaluate operational staffing levels • Review staff allocation to various functions and divisions • Review staff scheduling methodology • Analyze current standard of coverage and staffing performance for incidents • Review firefighter/EMS staff distribution • Review utilization of career and volunteer companies, where applicable • Review responsibilities and activity levels of personnel • Personnel management systems of the department will also be reviewed, focusing on: • Human resources policies and handbooks • Quality and status of job descriptions • Personnel reports and recordkeeping • Compensation systems • Disciplinary process • Counseling services • Application and recruitment processes • Testing, measuring, and promotion processes • Member retention efforts and programs Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota • Health and wellness programs Task 2-E: Service Delivery and Performance ESCI will review and make observations in areas specifically involved in, or affecting, service levels and performance of each department, either individually or when operating in concert with one another in the study area (the collective jurisdiction of all organizations included in the study). Areas to be reviewed shall include, but not necessarily be limited to: • Service Demand Analysis—  Analysis of current service demand by incident type and temporal variation  Analysis and geographic display of current service demand density • Resource Distribution Study—  Overview of the current facility and apparatus deployment strategy, analyzed through Geographical Information Systems software, with identification of service gaps and redundancies. Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota • Resource Concentration Review—  Analysis of geographic display of the response time necessary to achieve full effective response force arrival in the study area using existing distribution of all organizational resources  Analysis of company and staff distribution as related to effective response force assembly • Response Reliability Study—  Analysis of current workload, including unit hour utilization (to the extent data is complete)  Review of actual or estimated failure rates (to the extent data is complete)  Analysis of call concurrency and impact on effective response force assembly • Response Performance Analysis—  Analysis of actual system response time performance, analyzed by individual companies (to the extent data is available). • Mutual and Automatic Aid Systems Task 2-F: Support Programs ESCI will review and make overall observations involving support programs for the critical areas of training, life safety services, and communications. Items to be reviewed include: Training • General training competencies • Training administration • Training schedules • Training facilities • Training procedures, manuals, and protocols • Training recordkeeping Life Safety Services (Fire Prevention) • Code enforcement activities • New construction inspection and involvement • General inspection program • Fire and life-safety public education programs • Fire investigation programs • Pre-incident planning • Statistical collection and analysis Communications • Alarm systems and communications infrastructure • PSAP and Dispatch Center capabilities and methods • Dispatch center staffing Task 2-G: Planning for Fire Protection and Emergency Medical Services The planning processes within each agency shall be reviewed. Key components include: Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota • Review and evaluate the adequacy of the current planning process • Review elements of tactical planning within each organization • Review operational planning within each organization • Review strategic planning practices • Review long range or other planning efforts • Make recommendations relative to future planning process needs Task 2-H: Emergency Medical Services Support and System Oversight Evaluate Emergency Medical Services support and oversight mechanisms to include, but not limited to, the following: • Review of logistical support services • Review of current medical control and oversight • Review of quality assurance/quality improvement mechanisms in place • Review of system integrity regarding required credentialing Task 2-I: Technical Rescue and Hazmat Services Support and Response Capability Evaluate departmental capabilities regarding technical rescue and hazardous materials incident response to include, but not limited to, the following: • Review of physical and personnel resources • Review of training and educational compliance • Review of historical staffing performance regarding technical rescue and hazardous materials responses Phase III: Future Opportunities for Cooperative Efforts ESCI will use the completed baseline assessment of each agency to identify opportunities and feasibility for cooperative efforts. The project team will identify areas of duplication that can be reduced through consolidation efforts, as well as potential service improvements that can be accomplished. Experience has shown that this frequently becomes the overriding influence for public fire service consolidation efforts. Items in this section of the report include but are not limited to the areas listed below. The detailed information provides department heads and elected officials with the information necessary to make important decisions regarding emergency services consolidation. Included are: Task 3-A: General Partnering Strategies The various partnering strategies are described, beginning with a do-nothing or status quo approach, and ending with complete consolidation of the agencies into a new emergency service provider. The following alternatives will be evaluated and discussed: • Complete autonomy • Advanced auto aid systems • Functional consolidation • Operational consolidation • Legal unification or merger Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota Task 3-B: Options for Shared Services The study considers the many shared issues that face each agency, and how such matters affect the effort to construct a regional model for efficient service. These issues are identified and analyzed. Within each presented option for shared services, ESCI will evaluate and discuss the following: • Level of cooperation • Estimated timeline for completion • Affected section, i.e. Administration, Operations, Support Services • Affected stakeholders • Objective of strategy • Summary of strategy • Guidance • Fiscal considerations • Social considerations • Policy actions Task 3-C: Fiscal Analysis ESCI uses computer-driven model budgets for each agency to allow a comparative examination of the actual public costs for each fire agency, and as a tool for analyzing the financial effects of any type of consolidation. Budget modeling is also used to measure the effects of the proposed change(s). Funding mechanisms are Identified financial outcomes are provided for each consolidation strategy offered. • Review and analyze department budgets and revenues • Review separate budgets • Develop projected consolidated budget extending to a minimum of five years • Identify financial issues of consolidation • Identify areas of short and long-term savings and costs Fiscal analysis is an important component of the emergency services evaluation. Long-term survival of an emergency services system requires that the system be adequately funded. ESCI determines the fiscal state of each agency and develops recommendations on improving the financial resources available for emergency services. All recommendations are consistent with the financial capability to provide adequate, cost-effective services to citizens. In addition, budgeting practices are thoroughly examined, and alternate methodologies may be suggested. In addition to the fiscal state evaluation of each agency, ESCI will present an evaluation of various funding alternatives to assist the region in the sharing of the cost of providing any consolidated or merged emergency services. Presented alternatives will include, but not necessarily be limited to, the following: • Funding based on:  Redirected funds  Charitable foundations  Mill levy • Cost allocation based on:  Area Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota  Assessed value  Deployment  Service demand  Fixed rate  Population  Multiple variables Task 3-D: Findings, Recommendations, and Implementation Plan Any cooperative venture among the agencies presents the organizational leaders with a series of challenges. Successful implementation of this proposal will require that significant matters be addressed regardless of which form of consolidation is chosen. Those issues will be identified here. • Findings  Feasibility of each option will be presented • Preferred Option  The preferred option or options will be presented and discussed at length • Policy Action  Necessary policy action by the elected bodies will be described • Timelines  The recommendations outlined in this section provide general completion timelines offered to guide the agencies in developing a more detailed listing during the formal planning process • Process Issues  Strategic planning, legal considerations, management and governance, funding, and other issues will be provided in detail Phase IV: Development, Review, and Delivery of the Cooperative Services Study Task 4-A: Development and Review of Draft Project Report ESCI will develop and produce an electronic version of the draft written report for review by the four-agency project team. Client feedback is a critical part of this project, and adequate opportunity will be provided for review and discussion of the draft report prior to finalization. The report will include: • Detailed narrative analysis of each report component structured in easy-to-read sections and accompanied by explanatory support to encourage understanding by both staff and civilian readers • Clearly designated recommendations highlighted for easy reference and cataloged as necessary in a report appendix • Supportive charts, graphs, and diagrams, where appropriate • Supportive maps, utilizing GIS analysis as necessary Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota Task 4-B: Delivery and Presentation of Final Project Report ESCI will complete any necessary revisions of the draft and produce five publication-quality bound, final versions of the written report along with an electronic copy in PDF file format. A formal presentation of the project report will be made by ESCI project team member(s) to staff, elected officials, and/or the public as necessary and will include the following: • A summary of the nature of the report, the methods of analysis, the primary findings, and critical recommendations • Supportive audio-visual presentation • Review and explanation of primary supportive charts, graphs, diagrams, and maps, where appropriate • Opportunity for questions and answers, as needed • All presentation materials, files, graphics, and written material will be provided to the client at the conclusion of the presentation(s) Cooperative Services Feasibility Study Completion Timelines ESCI offers the following project timeline, which is subject to change based upon the mutual agreement of the four agencies participating in the study and ESCI. The timeline will not begin until ESCI has been provided with all information and data necessary for the successful completion of the project. ESCI estimates a timeline of 180 days from the completion of fieldwork. Project Phase Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Phase I: Project Initiation & Site Visit Phase II: Baseline Agency Evaluations Phase III: Future Opportunities for Cooperative Efforts Phase IV: Development, Review, and Delivery of Final Report Cooperative Services Feasibility Study Proposed Project Fee Emergency Services Consulting International is pleased to present the following formal cost proposal for the project outlined in the Scope of Work. The fee ESCI is proposing to perform this study is inclusive of expenses as follows: Project Phase Consulting Fees Expenses Total Phase I: Project Initiation & Site Visit $14,895 $5,003 $19,898 Phase II: Baseline Agency Evaluations $17,608 $0 $17,608 Phase III: Future Opportunities for Cooperative Efforts $11,378 $0 $11,378 Phase IV: Development, Review, and Delivery of the Final Project Report $9,405 $1,888 $11,293 Total Cost (Not to exceed): $60,177 Cooperative Services Feasibility Study SOW St. Cloud Metro Area, Minnesota ESCI Hourly Rates Senior Level Project Oversight, Senior Data Engineer/SME ........................................... $200/hr. Project Manager, Senior Developer, GIS, BIA, mid-level Systems Engineer ..................... $170/hr. Senior Data Analyst ........................................................................................................ $150/hr. Mid-level Data Analyst .................................................................................................... $125/hr. Admin Support ................................................................................................................ $90/hr. Proposed Payment Schedule • 10% payment due upon signing of the contract. • Monthly invoicing thereafter as work progresses. Council Agenda Item 4c MEETING DATE: July 5, 2022 AGENDA ITEM: SJFD – PERA, Request for Cost Analysis SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The St. Joseph Fire Relief Association is recommending approval of the Request for Cost Analysis to PERA. PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: The Fire Department would like to review joining PERA for their retirement plan. In order to do that, PERA requires a Request for Cost Analysis be completed which requires approval of the city council. There is no cost or requirement to join PERA by completing the cost analysis. BUDGET/FISCAL IMPACT: ATTACHMENTS: PERA - Enrollment Process Statewide Volunteer Firefighter Retirement Plan REQUESTED COUNCIL ACTION: Approve cost analysis for PERA for the St. Joseph Fire Department Enrollment Process Statewide Volunteer Firefighter Retirement Plan Legislation passed in 2009 created a Statewide Volunteer Firefighter Retirement Plan (SVFRP, referred to as “the Plan” in this document) for volunteer firefighters who provide service to a municipal fire department or an independent nonprofit firefighting corporation. The Plan is voluntary, and open to fire departments as a replacement of their existing volunteer firefighter retirement plan. It is also open to municipalities currently without a volunteer firefighter retirement plan. The Plan is codified as Minnesota Statutes Chapter 353G. This document will provide information needed for a relief association and municipality or independent nonprofit firefighting corporation to: (1) request an estimate of annual costs expected to be incurred as a result of joining the Plan, (2) act on that information, (3) elect enrollment in the Plan, and (4) move assets and liabilities into the Plan. Request a Cost Analysis The decision to participate in the Plan is made jointly by the entity operating the fire department and the volunteer firefighter relief association (if one exists). Individual firefighters can not join the Plan on their own, nor can an entity pick and choose which volunteer firefighters will be enrolled. The process for electing coverage of volunteer firefighters by the Plan is initiated by a request to PERA for a cost analysis of the prospective retirement coverage. The cost analysis will provide the entity operating the fire department an estimate of future annual contributions that will be required to provide the level of benefits selected. There is no charge for this service. The steps for requesting a cost analysis are described in Minnesota statutes 353G.05. They are as follows: 1. If the volunteer firefighters are covered by an existing relief association, the secretary of the relief association must ask the relief association board to approve a request for a cost analysis from PERA. Whether or not there is an existing relief association, the chief administrative officer of the municipality or non-profit fire corporation that sponsors the fire department must seek approval from the city council or the non-profit’s board to request a cost analysis. 2. If the municipality’s council or the non-profit’s board (and the relief association board, if one exists) approve of a cost analysis, the secretary of the relief association (if one exists) and chief administrative officer of the entity that sponsors the fire department jointly submit a request to PERA’s executive director for estimates of costs of the potential retirement coverage using PERA’s Cost Analysis Request Form. If the volunteer fire department is associated with more than one municipality or non-profit, the chief Volunteer Firefighter Retirement Plan 2 administrative officer of each sponsoring entity of the volunteer fire department must jointly execute the request. 3. Once PERA receives the Cost Analysis Request Form, staff will either contact the fire department or the State Auditor’s Office to receive demographic information required to calculate costs. That information includes data about individual members (birth dates, years of service in any existing plan), proposed benefit level(s), asset values, and a copy of the relief association bylaws (if a relief association exists). 4. Once the demographic information is received, PERA will run a cost analysis. Depending on the backlog, it may take a couple of weeks to run the analysis. Once the analysis is complete, the results will be sent to those who initiated the request. 5. At the same time, if a relief association exists and has a special fund established, the State Board of Investment (SBI) will review the investment portfolio of the special fund and determine which assets could be transferred to SBI and which must be sold before December 31st should the entity elect to join the Plan. Results will be communicated back to the relief association. In most cases, assets will have to be sold. Respond to the Cost Analysis/Elect Enrollment Upon receipt of the cost analysis from PERA, the governing body of the municipality (or municipalities) or the independent nonprofit corporation associated with the fire department has 120 days to approve coverage in the Plan. If the retirement coverage change is not acted upon within 120 days, it is deemed to be disapproved. If coverage in the Plan is not approved, no change is made and firefighters will not be enrolled in the Plan. Entities may request an additional cost analysis at any time in the future using the same procedure as outlined above. If the retirement coverage is approved by the applicable governing body, a board or council resolution should be written stating that coverage has been approved, and a copy of the resolution sent to PERA. PERA will notify SBI, and SBI will work with the owner of the assets so that there is a smooth transfer of assets on December 31st of that year. PERA will also work with the record holder to set up a separate account, enroll members, and collect the information we need to administer the plan. Coverage by the Plan is effective on the next following January 1st. On the date immediately prior to the effective date of the coverage change, the special fund of the applicable volunteer firefighters’ relief association, if one exists, will cease to exist as a pension fund of the association and legal title to the assets of the special fund will transfer to SBI, with the beneficial title to the assets of the special fund remaining in the applicable volunteer firefighters. Volunteer Firefighter Retirement Plan 3 What Paperwork Will Be Required In The Future? Once coverage by the Plan is effective, PERA will certify the existence of coverage in the Plan on an annual basis for each participating fire department in order to fulfill the requirements in Minnesota Statutes 69.011, subd. 2. The applicable fire chief, however, will need to continue certifying the fire personnel and fire department equipment as of the prceding December 31 on an annual basis in accordance with MS 69.011, subd. 2(b). The State Auditor’s Office will require one more financial report and audit in accordance with MS 69.051, subd. 1 for those relief associations that have assets of at least $200,000. The board of each volunteer firefighters relief association that is not required to file a financial report and audit under subdivision 1 must prepare one last detailed statement of the financial affairs for the preceding fiscal year of the relief association’s special fund in accordance with MS 69.051, subd. 1a. Each municipality which has an organized fire department but which does not have a firefighters’ relief association shall prepare one last detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year in accordance with MS 69.051, subd. 3. Annually, by March 31, the fire chief of the fire department with firefighters who are active members of the retirement plan will certify to PERA the good time service credits earned by each firefighter for the previous year. That information will be used to determine required contributions for the following calendar year and to provide benefits to those who retire during the year. Relief Association Changes Minnesota Statutes 353G.06 contains detailed information about what happens to the relief association once the firefighters are covered by the Plan. On December 31, the special fund of the relief association, if one exists, ceases to exist as a pension fund of the association and legal title to the assets of the special fund transfers to the State Board of Investment. The relief association membership may elect to retain the relief association upon the effective date of the change in volunteer firefighter retirement coverage, but the following changes will take place:  The relief association board membership will be reduced to five people;  The relief association may only maintain a general fund;  The relief association may no longer receive state aid or municipal funds; and  The relief association may no longer pay any service pension or benefit that was not authorized as a general fund disbursement under the articles of incorporation or bylaws of the relief association in effect prior to the plan coverage election process. 5.15.2017 Council Agenda Item 4d MEETING DATE: July 5, 2022 AGENDA ITEM: Equipment Certificate Reimbursement Declaration SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: City Council adopted resolution 2020-032 establishing procedures relating to compliance with reimbursement bond regulations under Internal Revenue Code. The resolution provides a blanket approval to reimburse project costs prior to bond issues. For each project that is moved forward with a potential bond issue, council can just consider approving a declaration of intent to reimburse itself for the project once bond proceeds are received. BACKGROUND INFORMATION: Staff request council’s consideration to declare intent to reimburse itself for general city equipment to be partially financed by the 2023 equipment certificates. The declaration would allow ordering equipment and take delivery prior to issuing the equipment certificates. The general equipment fund will be reimbursed by the certificate proceeds. BUDGET/FISCAL IMPACT: None ATTACHMENTS: Resolution 2020-031 Resolution Establishing Bond Reimbursements Procedures Exhibit A Declaration of Intent REQUESTED COUNCIL ACTION: Adopt Exhibit A the Declaration of Intent to reimburse costs relating to the general capital equipment with future certificate proceeds. EXHIBIT A DECLARATION OF OFFICIAL INTENT The undersigned, being the duly appointed and acting Finance Directorof the City ofSt. Joseph,Minnesota (the "City"), pursuant to and for purposes of compliance with Treasury Regulations, Section 1.150-2 (the "Regulations"), under the Internal Revenue Code of 1986, as amended, hereby states and certifies on behalf ofthe City asfollows: 1.The undersigned has been and is on the date hereof duly authorized by the City Council of the City to make and execute this Declaration of Official Intent (the "Declaration") for and on behalf of the City. 2. This Declaration relates to the Community Center project (the "Project") and the costs thereof to befinanced: 3.The City reasonably expects to reimburse itself for the payment of certain costs of the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds") to be issued after the date of payment of such costs. As of the date hereof, the City reasonably expects that 15,000,000is the maximum principal amount of the Bonds which will be issued to finance the Project. 4. Each expenditure to bereimbursed from the Bonds is or will be a capital expenditure or a cost ofissuance, or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Regulations. 5. As of the date hereof, the statements and expectations contained in this Declaration are believed to be reasonable and accurate. Date: September 7, 2021. Lori Bartlett Finance Director City of St. Joseph, Minnesota A-1 CouncilAgenda Item thMEETINGDATE: September 7, 2021 AGENDA ITEM: Public Hearing - Vacation ofAlley onBlock7 (between lot 9and10) SUBMITTED BY: Community Development STAFF RECOMMENDATION: Consider thevacation ofthenorth-south alley onBlock 7, Townsite of St. Joseph PREVIOUS COUNCIL ACTION: TheCity Council initiated the vacation ofthenorth-south alleyon Block 7between Lots9and10ofTownsite ofSt. Joseph andsetthepublic hearing attheirAugust 2, 2021 meeting tobeheldonSeptember 7, 2021. BACKGROUND INFORMATION: Council directed stafftoprocess thevacation forthealleyway on Block 7between lots 9and10ofTownsite ofSt. Joseph. Thealleyway isbordered tothewestandeast bytwoproperties. Staff reached outtothetwoadjacent owners toinform themoftheproposal. To-date staffhasonlyheard fromtheproperty owner totheeast (211Minnesota St WKathryn Krebsbach) who wasnotinsupport ofvacating thealleyway. Staff alsosentandposted public hearingnotices toproperty owners within 350’ andto-dateno comments have beenreceived. During thepublic forum atthecity council meeting onAugust 2, 2021, two properties commented asfollows: rdTimBorresch, 113AveNW, commented thatheisnot infavor ofclosing thealleyway thatrunsnorth ndrdandsouthbetween2and3Avenue. Hefeels thathisconcerns have notbeenheard bytheCouncil and thatclosing thealleyisawaste oftaxpayer money. Hefeelsthealleyprovides good accessforpedestrian andvehicle traffic inthearea. Borresch addedhe isfrustrated withtheapproach theCityhastakento projects like this. Stephen May, 211 Minnesota StW, spokeagainst closing theentry toblock seven. Hestatedthat thearea willbecome more dangerous ifthere isnotaneasyexitonthesouth side aspeople parkonthat alley when theyareattheballfield. Hementioned other safety hazards thatwillbecreated byclosing thatpart ofthealley, suchasrenters having tomove inandoutofthevarious rental properties using thebusier Minnesota Street instead ofthat alleyway. Headded thatsnow removal willbeachallenge anddrifting of snow builtupinthealleywould beanissue. Hewould liketheCouncil toreconsider. Ifthevacation isapproved bytheCouncil, staffrecommends thatthe twoadjacent property owners (211 MNST Wand 215MNST W) secure andrecord anagreed upon private easement toguarantee continued access rights tobothproperties. Drainage andUtility Easement: Thecity willneedtoretain adrainage andutility easement duetothesanitary sewer line. Theeasement willbethesame length andwidth astheexisting alleyway andisshown intheattached exhibit. ATTACHMENTS: Alley Vacation Exhibit Permanent Drainage and Utility Easement Resolution 2021-052Vacating Alley Right ofWay REQUESTED COUNCIL ACTION: Motion 1: Approve the Permanent Drainage andUtilityEasement Motion 2: Approve Resolution 2020-052Vacating theAlley PERMANENT DRAINAGE AND UTILITY EASEMENT TheCity ofSt. Joseph, Minnesota, owner, amunicipal corporation, doesherebygrant andconvey totheCityofSt. Joseph, Minnesota, forever, aperpetual drainage andutility easement overandunder thatpartdescribed asfollows: Allthat partofthe north-south alleyinBlock 7, SAINT JOSEPH, according totherecorded platthereof, StearnsCounty, Minnesota, lying adjacent toandbetween Lots 9and10 ofsaidBlock 7, described as follows: Beginning atthenorthwesterly corner ofsaidLot 10; thence southeasterly, along thesouthwesterly line of saidLot10tothesouthwesterly corner ofsaidLot10; thence southwesterly tothesoutheasterly corner of saidLot9; thence northwesterly, alongthenortheasterly lineofsaidLot9tothenortheasterly corner of saidLot9; thence northeasterly tothepoint ofbeginning. thAdoptedbytheCityCounciloftheCityofSt. Joseph this7day of September, 2021. CITY OFST. JOSEPH By_________________________________ RickSchultz, Mayor By _________________________________ Therese Haffner, CityAdministrator STATE OFMINNESOTA ) ss. COUNTY OFSTEARNS ) Theforegoing wasacknowledged before methe _____ dayof ____________, 2021, byRick Schultz andTherese Haffner, theMayor andCityAdministrator, respectively, oftheCityofSt. Joseph, a Minnesota municipal corporation, onbehalf ofsaidmunicipal corporation. Notary Public DraftedBy: CityofSt. Joseph 75CallawayST. E St. Joseph, MN56374 A-1 EXHIBIT A DECLARATION OF OFFICIAL INTENT The undersigned, being the duly appointed and acting Finance Director of the City of St. Joseph, Minnesota (the "City"), pursuant to and for purposes of compliance with Treasury Regulations, Section 1.150-2 (the "Regulations"), under the Internal Revenue Code of 1986, as amended, hereby states and certifies on behalf of the City as follows: 1. The undersigned has been and is on the date hereof duly authorized by the City Council of the City to make and execute this Declaration of Official Intent (the "Declaration") for and on behalf of the City. 2. This Declaration relates to the 2023 general capital equipment purchases (the "Project") and the costs thereof to be financed: 3. The City reasonably expects to reimburse itself for the payment of certain costs of the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds") to be issued after the date of payment of such costs. As of the date hereof, the City reasonably expects that $400,000 is the maximum principal amount of the Bonds which will be issued to finance the Project. 4. Each expenditure to be reimbursed from the Bonds is or will be a capital expenditure or a cost of issuance, or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Regulations. 5. As of the date hereof, the statements and expectations contained in this Declaration are believed to be reasonable and accurate. Date: July 5, 2022. _______________________________________ Lori Bartlett Finance Director City of St. Joseph, Minnesota Council Agenda Item 4e MEETING DATE: July 5, 2022 AGENDA ITEM: Loader SUBMITTED BY: Public Works BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: The council approved the 5-year capital equipment plan showing the 2002 loader replacement in 2023. BACKGROUND INFORMATION: Public Works loader #19 is a 2002 John Deere 544H and the equipment certificate for this piece of equipment is up in July 2023. Loaders are out a minimum of 6 months and with this said I would like to take advantage of the 2022 state contract pricing and order the loader replacement now. Delivery and payment would not take place until 2023. This loader is a very important and dependable piece of equipment in our snow removal process and is important that we upgrade. As a piece of equipment gets older it is also costlier to operate. This machine is 22 years old and is showing wear. The hydraulic hoses are deteriorating, hydraulic cylinders are leaking, pins and bushings need replacing. A major breakdown like a transmission could potentially cost in the $40,000.00 range. The current trade-in value is set at $49,000.00 for this current year and hours on the machine, this would decrease with added hours and years. Due to the high cost of loaders, we program the replacements with one of the two equipment certificate issues. The next equipment certificate issue is scheduled for summer 2023. The second certificate will issue in 2025. They rotate on a 5-year basis to help minimize spikes in the general levy. Pushing back the 2002 loader replacement to 2025 does not work since we have other pieces of equipment planned for replacement in that year. If postponed, the next equipment certificate that would have room for the loader would be 2028. BUDGET/FISCAL IMPACT: $201,315.00 ATTACHMENTS: State contract pricing from RDO REQUESTED COUNCIL ACTION: Approve the purchase order for a John Deere 544H loader with plow and wing. Council Agenda Item 4f MEETING DATE: July 5, 2022 AGENDA ITEM: 2022 Primary & General Election Judge Appointment SUBMITTED BY: Administration BACKGROUND INFORMATION: Below are the names of Election Judges for the Primary Election on August 9, 2022, and the General Election on November 8, 2022. Certain staff will be working the Election and providing backup as needed. Names in bold signify the Head Judges. Due to the fact that emergencies may occur or availabilities may change, staff is requesting that Council give the City Clerk the ability to assign additional judges to be trained and assigned, if necessary. Carol Anderson Kayla Klein Grace Ann Asheim Kay Lemke Kent Asheim Angie Loecken Judy Barg Kathy Lyon Lori Bartlett Brian Murphy Charisse Burgett Tracy Ophoven Susan Counter Deb Reber Tamara Cowan Debra Reber Lisa Finken Ann Scherer Vicky Granite Jean Schirmers Bernie Heurung Barb Schloemer Mark Hoeschen Joan Struzyk Mitchell Hogan Susan Sink Michaeline Hollander John Spillers Charity Hunter Karen Storkamp Linda Jernberg Kim Wenner-Roth ATTACHMENTS: None REQUESTED COUNCIL ACTION: Appoint Election Judges for the August 9th Primary Election and November 3rd General Election and authorize the City Clerk the ability to assign additional judges to be trained and assigned, if necessary. Council Agenda Item 5 MEETING DATE: July 5, 2022 AGENDA ITEM: Public Hearing – Proposed Property Tax Abatement – Community Center Bonds SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: Council ordered the tax abatement hearing. BACKGROUND INFORMATION: Staff has been working with Tammy Omdal, Northland Securities, and Mary Ippel, Taft Attorneys, on financing the community center. The City secured $4 million from Minnesota State Bonding and approved $6 million from local option sales tax funds. The local option sales tax funds will be collected through 2038. The capital campaign is on-going for the next several months. With the local option sales tax collections over a period of time, the funding mechanism is GO Tax Abatement bonds. The city identifies taxing parcels to abate taxes to make bond payments. There will be a debt levy shown, but the debt levy will actually be paid for with the local option sales taxes. This is the best funding option for these types of projects and is recommended by bond counsel. Part of the process to issue GO Tax Abatement bonds is to conduct a public hearing with the parcels identified. Staff intends to issue the bonds in two parts; one part with 2022A street improvement bonds for the $6 million local option sales tax portion, and one part in later 2023 when the capital campaign and final project design costs are known. The GO Tax Abatement bonds hearing proposed will cover both bond issues versus expending costs for two separate hearings. The GO Tax Abatement bonds can go up to $13 million per voter authority, so the hearing will cover up to $13 million. BUDGET/FISCAL IMPACT: Annual Average Estimated Abatement (Sales Tax Revenue) $720,000 ATTACHMENTS: Resolution 2022-036 Approving Property Tax Abatements Abatement Public Hearing Notice REQUESTED COUNCIL ACTION: Authorize Resolution 2022-036 approving property tax abatements. 74011004v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA HELD: JULY 5, 2022 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Joseph, Stearns County, Minnesota, was duly called and held at the City Hall in St. Joseph, Minnesota, on July 5, 2022, at 6:00 p.m., for the purpose, in part, of approving tax abatements to finance the construction of a community center in the City. The following members were present: and the following were absent: Member ______________________ introduced the following resolution and moved its adoption: RESOLUTION NO. 2022-036 APPROVING PROPERTY TAX ABATEMENTS BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota (the "City"), as follows: WHEREAS, the City proposes to approve tax abatements to finance the cost of the construction of a community center (collectively, the "Project"). The City proposes to use the abatement for the purposes provided for in the Abatement Law (as hereinafter defined), including the Project. The proposed term of the abatement will not exceed twenty (20) years in an amount not to exceed $13,000,000. The abatement will apply to the City's share of the property taxes (the "Abatement") derived from the property described by tax parcel identification numbers in the table below (the “Property”); and 84.53350.0000 84.53645.0000 84.53300.0354 84.53470.0230 84.53733.0177 84.53470.0106 84.53470.0242 84.53735.0000 84.53794.0012 84.53470.0241 84.53735.0020 84.53794.0014 84.53794.0032 84.53797.0398 84.53794.0016 84.53800.0003 84.53798.0505 84.53794.0018 84.53794.0024 84.53799.0500 84.53794.0030 84.53945.0050 84.53799.0501 84.53800.0000 84.53794.0008 84.53851.0000 84.53794.0000 84.53794.0026 84.53855.0000 84.53794.0002 84.53945.0060 84.53734.0011 84.53794.0004 84.53425.0000 84.53734.0012 84.53794.0006 84.53425.0004 84.53794.0400 84.53794.0028 74011004v1 2 84.53451.0000 84.53734.0013 84.53470.0240 84.53470.0310 84.53300.0281 84.53794.0034 84.53475.0200 84.53300.0282 84.53733.0110 84.53475.0201 84.53300.0295 84.53733.0100 84.53475.0202 84.53300.0323 84.53733.0105 84.53547.0000 84.53300.0324 84.53432.0089 84.53547.0001 84.53300.0351 84.53350.0100 84.53547.0550 84.53300.0352 84.53572.0000 84.53300.0353 WHEREAS, the City has requested, in writing, that Independent School District No. 742 (St. Cloud Area School District) (the “School District”) grant an abatement for the Project. The School District has declined, in writing, to grant an abatement and therefore the City has the authority to grant an abatement for up to 20 years; and WHEREAS, on the date hereof, the Council held a public hearing on the question of the Abatement, and said hearing was preceded by at least 10 days but not more than 30 days prior published notice thereof; and WHEREAS, the City Council proposes to issue its general obligation bonds, a portion to be designated the abatement portion of the bonds (the “Abatement Portion of the Bonds”) in an amount not to exceed $13,000,000 to finance the Project; and the Abatement will be pledged to the payments of the Bonds; and WHEREAS, the Abatement is authorized under Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the "Abatement Law"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota, as follows: 1. Findings for the Abatement. The City Council hereby makes the following findings: (a) The Council expects the benefits to the City of the Abatement to at least equal or exceed the costs to the City thereof. (b) Granting the Abatement is in the public interest because it will: (i) provide employment opportunities in the political subdivision; (iii) provide or help acquire or construct public facilities; (iv) help redevelop or renew blighted areas; 74011004v1 3 (c) The Property is not and will not be located in a tax increment financing district during the Abatement period. (d) In any year, the total amount of property taxes abated by the City by this and other existing abatement resolutions, shall not exceed ten percent (10%) of net tax capacity of the City for the taxes payable year to which the abatement applies or $200,000, whichever is greater (the "Abatement Limit"). The City may grant other abatements permitted under the Abatement Law after the date of this resolution, provided that to the extent the total abatements in any year exceed the Abatement Limit the allocation of the Abatement limit to such other abatements is subordinate to the Abatement granted by this resolution. 2. Terms of Abatement. The Abatement is hereby approved. The terms of the Abatement are as follows: (a) The Abatement shall be for up to a twenty (20) year anticipated to commence for the taxes payable in the year 2023. The City reserves the right to modify the commencement date, but the abatement period shall not exceed twenty (20) years. (b) In accordance with Section 469.1815 of the Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. (c) The City will abate the City's share of property tax amount which the City receives from the Property, cumulatively not to exceed $13,000,000. (d) The Abatement shall be subject to all the terms and limitations of the Abatement Law. The motion for the adoption of the foregoing resolution was duly seconded by Member _____________________________ and, after a full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: 74011004v1 4 STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH I, the undersigned, being the duly qualified and acting City Administrator of the City of St. Joseph, Stearns County, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the approval of property tax abatements. WITNESS my hand this 5th day of July, 2022. ___________________________________ City Administrator CITY OF ST. JOSEPH NOTICE OF PUBLIC HEARING REGARDING PROPOSED PROPERTY TAX ABATEMENTS NOT{CE IS HEREBY GIVEN that the City Council of the City of St. Joseph, Minnesota(the City") will hold a public hearing at a meeting of the Council beginning at 6:00 P.M., on Tuesday, July 5, 2022, to be held at the St. Joseph City Hall, 75 Callaway St E, St. Joseph, Minnesota, on the proposal that the City abate property taxes levied by the City on the following property identified by the tax parcel identification numbers listed below (the "Property"): 84.53350.0000 84.53645.0000 84.53300.0354 84.53470.0230 84.53733.0177 84.53470.0106 84.53470.0242 84.53735.O Q0 84.53794.OQ12 84.53470.0241 84.53735.0020 84.53794.0014 84.53794.0032 84.53797.0398 84.53794.0016 84.53800.0003 84.53798.0505 84.53794.0018 84.53794.0024 84.53799.0500 84.53794.0030 84.53945.005Q 84.53799.0501 84.53800.0000 84.53794.0008 84.53851.0000 84.53794.0000 84.53794.0026 84.53855.0000 84.53794.0002 84.53945.0060 84.53734.0011 84.53794.0004 84.53425.0000 84.53734.0012 84.53794.0006 84.53425.0004 84.53794.0400 84.53794.0028 84.53451.0000 84.53734.0013 84.53470.0240 84,53470.0310 84.53300.0281 84.53794.0034 84.53475.0200 84.53300.0282 84.53733.0110 84.53475.0201 84.53300.0295 84.53733.0100 84.53475.202 84.53300.0323 84.53733.0105 84.53547.0000 84.53300.0324 84.53432.0089 84.53547.0001 84.53300.0351 84.53350.0100 84.53547.0550 84.53300.0352 84.53572.0000 84.53300.0353 The total amount of the taxes proposed to be abated by the City on the Property for up to a 20 year period is estimated to be not more than $13,000,000. The City Council will consider the property tax abatement to finance the construction of a community center in the City(the "Project"). The City proposes to issue (i) General Obligation Bonds, Series 2022A in the aggregate principal amount not to exceed $6,125,000, and (ii) General Obligation Bonds, Series 2023A in the aggregate principal amount not to exceed $6,875,000 to finance the Project. The City will use property tax abatements to pay the principal of the bonds to be issued. All interested persons may appear at the Tuesday, July 5, 2022 public hearing and present their views orally or in writing. BY ORDER OF THE CITY COUNCIL slTherese Haffner C7GCI0900262-01 City Administrator Council Agenda Item 6 MEETING DATE: July 5, 2022 AGENDA ITEM: Tammy Omdal - 2022A Bond Issue SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: Council ordered improvements for the 2022 street improvements and the pumper/tanker fire truck. Council ordered the abatement public hearing for the community center bonds. BACKGROUND INFORMATION: Tammy Omdal, bond financial advisor, will be present to discuss the 2022A bond issue. The upcoming bond issue includes the 2022 street overlays in the Graceview neighborhood, and 17th and 18th Ave SE. The fire dept pumper/tanker equipment certificates are included. The truck is planned to be delivered in Jan. 2023. The final part of the bond issue is the first part of the community center bonds that will be paid for with the local option sales tax. The truck and community center bonds are issued now to save on separate issuance costs and interest savings. Attached you will find the following documents related to your upcoming bond issuance for consideration at the council meeting: -Trigger Resolutions – Authorizes the Mayor and Administrator to approve the 2022A bond pricing. This allows the bond sale to occur and lock into the best rate. The bond sale summary will be presented at the August 1st council meeting. -Finance Plan – Provides a detailed overview of the series 2022A bond issue (for reference only; no action needed). BUDGET/FISCAL IMPACT: Up to $7,700,000 bond issue for 2022A Bonds ATTACHMENTS: Resolution 2022-035 Approving the Issuance of GO Bonds,Series 2022A Financing Plan 2022A REQUESTED COUNCIL ACTION: Consider adoption of Resolution 2022-035 Approving the Issuance of General Obligation Bonds, Series 2022A. CERTIFICATION OF MINUTES RELATING TO GENERAL OBLIGATION BONDS, SERIES 2022A ISSUER: City of St. Joseph, Minnesota BODY: City Council KIND, DATE, TIME AND PLACE OF MEETING: A regular meeting held on Tuesday, July 5, 2022, at 6:00 p.m., in the City Offices MEMBERS PRESENT: MEMBERS ABSENT: Documents Attached: Extract of Minutes of said meeting. RESOLUTION 2022-035 APPROVING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 2022A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS MY HAND officially as such recording officer on July 5, 2022. City Clerk EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STATE OF MINNESOTA HELD: Tuesday, July 5, 2022 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Joseph, State of Minnesota, was duly held on Tuesday, July 5, 2022 at 6:00 p.m. Member ___________________ introduced the following resolution and moved its adoption: RESOLUTION 2022-035 APPROVING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 2022A BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota (herein, the “City”), as follows: 1. The City Council hereby finds and declares that it is necessary and expedient for the City to sell and issue its fully registered general obligation bonds in the total aggregate principal amount not to exceed $7,700,000 (herein, the “Bonds”). The proceeds of the Bonds will be used to finance a portion of a new community center, the purchase of a fire truck and the City’s 2022 street improvements, and the costs of issuing the Bonds. 2. The City Council desires to proceed with the sale of the Bonds by direct negotiation with Northland Securities, Inc. (herein, “NSI”). NSI will purchase the Bonds in an arm’s-length commercial transaction with the City. 3. The Mayor and City Administrator are hereby authorized to approve the sale of the Bonds in an aggregate principal amount not to exceed $7,700,000 and to execute a bond purchase agreement for the purchase of the Bonds with NSI, provided the true interest cost is less than 5.50%. 4. Upon approval of the sale of the Bonds by the Mayor and the City Administrator the City Council will take action at its next regularly scheduled or special meeting thereafter to adopt the necessary approving resolutions as prepared by the City's bond counsel. 5. NSI is authorized to prepare an Official Statement related to the sale of the Bonds. 6. If the Mayor and the City Administrator have not approved the sale of the bonds to NSI and executed the related bond purchase agreement by December 31, 2022, this resolution shall expire. The motion for the adoption of the foregoing resolution was duly seconded by Member __________________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted by City Council this 5th day of July, 2022. CITY OF ST. JOSEPH Rick Schultz, Mayor ATTEST Therese Haffner, Administrator Finance Plan City of St. Joseph, Minnesota $7,645,000 General Obligation Bonds, Series 2022A July 5, 2021 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB Northland Securities, Inc. Page 2 Contents Executive Summary ........................................................................................................................................................... 1 Issue Overview .................................................................................................................................................................... 2 Purpose ................................................................................................................................................................ 2 Authority ............................................................................................................................................................. 2 Structure .............................................................................................................................................................. 3 Security and Source of Repayment ........................................................................................................ 3 Plan Rationale ................................................................................................................................................... 4 Issuing Process ................................................................................................................................................. 4 Attachment 1 – Preliminary Debt Service Schedules ........................................................................................ 5 Attachment 2 – Estimated Levy Schedules ............................................................................................................. 8 Attachment 3 – Related Considerations ................................................................................................................ 10 Bank Qualified ........................................................................................................................................ 10 Arbitrage Compliance ......................................................................................................................... 10 Continuing Disclosure ........................................................................................................................ 10 Premiums .................................................................................................................................................. 10 Rating .......................................................................................................................................................... 11 Attachment 4 – Calendar of Events .......................................................................................................................... 12 Attachment 5 - Risk Factors ......................................................................................................................................... 14 Northland Securities, Inc. Page 1 Executive Summary The following is a summary of the recommended terms for the issuance of $7,645,000 General Obligation Bonds, Series 2022A (the “Bonds”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations. Purpose Proceeds from the Bonds will be used to finance the City’s 2022 street improvement projects, a portion of a new community center, and a new fire truck, and to pay costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties, an abatement levy and ad valorem taxes. Repayment Term The Bonds will mature annually each December 15 in the years 2023 through 2042. Interest on the Bonds will be payable on June 15, 2023 and semiannually thereafter on each June 15 and December 15. Estimated Interest Rate True interest cost (TIC): 4.21% Prepayment Option Bonds maturing on and after December 15, 2031 will be subject to redemption on December 15, 2030 and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Standard and Poor’s (S&P). The City’s general obligation debt is currently rated "AA-" by S&P. Tax Status The Bonds will be tax-exempt, bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Negotiated Sale Estimated Pricing Day Monday, August 1, 2022 Council Consideration Monday, August 1, 2022 at 6:00 p.m. Northland Securities, Inc. Page 2 Issue Overview Purpose Proceeds from the Bonds will be used to finance the following: • The City’s 2022 street improvement projects (the “Improvement Portion”); • A portion of the new community center (the “Tax Abatement Portion”); and • A new fire truck (the “Equipment Portion”). Proceeds of the Bonds will also be used to pay costs associated with the issuance of the Bonds. The Bonds have been sized based on estimates provided by City staff as of June 7, 2022. The City anticipates applying prepaid assessments collected through July 6, 2022 to reduce the size of the Improvement Portion of the Bonds. The par amount of the Bonds will be revised after application of the prepaid assessments. The table below contains the sources and uses of funds for the bond issue. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Sections 469.1812 through 469.1815, Section 412.301 and Chapters 429 and 475. Improvement Portion Under Chapter 429, an Improvement means any type of improvement made under authority granted by section 429.021, which includes, but is not limited to, improvements to streets and sidewalks, storm and sanitary sewer systems, and street lighting systems. Before issuing bonds under Chapter 429, the City must hold a public hearing on the improvements and the proposed bonds and must then pass a resolution ordering the improvements by at least a 4/5 majority. A public hearing was held and the resolution ordering the improvements was adopted with a 4/5 majority at the meeting. Tax Abatement Portion Sections 469.1812 through 469.1815 does not authorize the actual “abatement of taxes.” Instead, the City will have the authority to levy a property tax (an abatement levy) that is equivalent to taxes that could be abated. At time of issuance, the City will certify abatement levies to pay the principal on the Bonds and debt service levies to pay interest (together “the tax levies”). Tax Abatement Community Center Equipment Fire Truck Street Improvements Issue Summary Sources Of Funds Par Amount of Bonds $6,125,000.00 $715,000.00 $805,000.00 $7,645,000.00 Total Sources $6,125,000.00 $715,000.00 $805,000.00 $7,645,000.00 Uses Of Funds Total Underwriter's Discount (1.450%)88,812.50 10,367.50 11,672.50 110,852.50 Costs of Issuance 30,925.45 3,610.07 4,064.48 38,600.00 Deposit to Project Construction Fund 6,005,262.05 700,000.00 788,750.00 7,494,012.05 Rounding Amount -1,022.43 513.02 1,535.45 Total Uses $6,125,000.00 $715,000.00 $805,000.00 $7,645,000.00 Northland Securities, Inc. Page 3 A public hearing will be held on July 5, 2022, and following the hearing the City Council will consider adoption of a resolution approving the property tax abatements and issuance of the Bonds. The maximum annual abatement levy to be certified for the Bonds is estimated to be approximately $440,000. Based on the City’s 2022 net tax capacity, the City has authority to approve total maximum annual abated levies in the amount of $592,997 (the “statutory maximum”). The City has one other issue outstanding applicable to the debt limit for a bus garage. This debt is expected to be retired in 2030. In addition, the City has a joint project with the School District. While the debt for the bus garage and the joint project with the School District is outstanding, the maximum annual abatement levy for the outstanding issues and the Bonds is estimated to be approximately $ 511,670, which is less than the total amount of abatement levies the City may approve pursuant to State Law. Equipment Portion Under Section 412.301, Capital Equipment includes, but is not limited to, road construction and maintenance equipment, public safety equipment and computer hardware and software, which must have a useful life at least as long as the term of the debt issued to finance the equipment. The term of the Bonds cannot exceed 10 years from the date of issuance. If the amount of the Equipment Portion of the Bonds exceeds 0.25% of the estimated market value of the taxable property in the City, a reverse referendum provision applies. The City’s estimated market value for taxes payable in 2022 is $531,941,900 ($531,941,900 x 0.0025 = $1,329,854). Since the Equipment Portion of the Bonds does not exceed $1,329,854, the reverse referendum provision does not apply. Structure The Tax Abatement Portion of the Bonds is structured to result in relatively level debt service payments over 20 years and based on a total set par amount of $6,125,000. The Improvement Portion is structured to result in relatively level debt service payments over 15 years. The Equipment Portion is structured to result in relatively level debt service over 9 years, which is within the 10-year maximum term allowed by State Statute. The assessments associated with the Improvement Portion of the Bonds have been structured with equal principal payments over the term of the Improvement Portion, resulting in an increasing levy. The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 1 and the estimated levy is illustrated in Attachment 2. Security and Source of Repayment The Bonds will be a general obligation of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: Special Assessments. The City is expected to levy special assessments against benefited properties in the amount of $161,000. The assessments are structured for level annual principal payments with interest charged at a rate that is 2.00% over the Average Coupon. The assessments will be levied in 2022 for first payment in 2023. The City anticipates applying pre-paid assessments collected through July 15, 2022 towards the Improvement Portion of the Bonds. • Abatement Levy. The City will pledge abatement levies for payment of the Tax Abatement Portion of the Bonds. As required by statute for issuance of Tax Abatement Bonds, the Northland Securities, Inc. Page 4 annual City taxes on the parcels to be included within the abatement project area are estimated, at a minimum, to equal the annual principal over the 20-year term of the Tax Abatement Portion of the Bonds. Properties within the abatement project area will pay the same amount (rate) for City taxes as property outside of the abatement project area. Inclusion within the abatement project area has no tax implications for these properties. There is no different impact on individual property tax statements for properties within the tax abatement project area as compared to other properties within the City as a whole. • Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show an annual tax levy ranging from approximately $42,790 to $331,701for the Tax Abatement Portion, $56,002 to $65,226 for the Improvement Portion, and an average levy of approximately $99,285 for the Equipment Portion, is needed to produce the statutory requirement of 105% of debt service, after accounting for assessments. The levies may be adjusted annually based on actual special assessment collections and additional monies in the debt service fund. The initial tax levies will be made in 2022 for taxes payable in 2023. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland’s knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Bonds provides the best means of achieving the City’s objectives and cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process The City has engaged Northland to act as underwriter for the Bonds pursuant to federal securities regulations. Northland will purchase the Bonds in an “arm’s length” negotiated sale. The calendar of events for the issuing process can be found in Attachment 4. In authorizing the issuance, the City Council will adopt a trigger (parameters) resolution. The resolution authorizes the Mayor and the City Administrator to execute a bond purchase agreement when the True Interest Cost of the Bonds is less than a level predetermined by the City Council on a date other than a regular City Council meeting date. If the trigger resolution is utilized, the bond purchase agreement will be ratified by the City Council at its next meeting. This approach gives the City greater flexibility in selling the Bonds when market conditions produce the desired results, rather than accepting the conditions that exist on a specific Council meeting date. Underwriter: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Taft Stettinius & Hollister, LLP, Minneapolis, Minnesota Paying Agent: Northland Trust Services, Inc. Minneapolis, Minnesota Northland Securities, Inc. Page 5 Attachment 1 – Preliminary Debt Service Schedules Combined *Based on estimated bank qualified rates as June 23, 2022, plus 0.50%. Date Principal Coupon Interest Total P+I Fiscal Total 08/30/2022 ----- 06/15/2023 --231,142.92 231,142.92 - 12/15/2023 250,000.00 2.750%145,985.00 395,985.00 627,127.92 06/15/2024 --142,547.50 142,547.50 - 12/15/2024 345,000.00 2.900%142,547.50 487,547.50 630,095.00 06/15/2025 --137,545.00 137,545.00 - 12/15/2025 350,000.00 3.050%137,545.00 487,545.00 625,090.00 06/15/2026 --132,207.50 132,207.50 - 12/15/2026 360,000.00 3.150%132,207.50 492,207.50 624,415.00 06/15/2027 --126,537.50 126,537.50 - 12/15/2027 375,000.00 3.250%126,537.50 501,537.50 628,075.00 06/15/2028 --120,443.75 120,443.75 - 12/15/2028 385,000.00 3.400%120,443.75 505,443.75 625,887.50 06/15/2029 --113,898.75 113,898.75 - 12/15/2029 400,000.00 3.550%113,898.75 513,898.75 627,797.50 06/15/2030 --106,798.75 106,798.75 - 12/15/2030 420,000.00 3.650%106,798.75 526,798.75 633,597.50 06/15/2031 --99,133.75 99,133.75 - 12/15/2031 425,000.00 3.700%99,133.75 524,133.75 623,267.50 06/15/2032 --91,271.25 91,271.25 - 12/15/2032 350,000.00 3.800%91,271.25 441,271.25 532,542.50 06/15/2033 --84,621.25 84,621.25 - 12/15/2033 365,000.00 3.900%84,621.25 449,621.25 534,242.50 06/15/2034 --77,503.75 77,503.75 - 12/15/2034 375,000.00 4.050%77,503.75 452,503.75 530,007.50 06/15/2035 --69,910.00 69,910.00 - 12/15/2035 395,000.00 4.100%69,910.00 464,910.00 534,820.00 06/15/2036 --61,812.50 61,812.50 - 12/15/2036 405,000.00 4.150%61,812.50 466,812.50 528,625.00 06/15/2037 --53,408.75 53,408.75 - 12/15/2037 425,000.00 4.200%53,408.75 478,408.75 531,817.50 06/15/2038 --44,483.75 44,483.75 - 12/15/2038 370,000.00 4.300%44,483.75 414,483.75 458,967.50 06/15/2039 --36,528.75 36,528.75 - 12/15/2039 385,000.00 4.350%36,528.75 421,528.75 458,057.50 06/15/2040 --28,155.00 28,155.00 - 12/15/2040 405,000.00 4.400%28,155.00 433,155.00 461,310.00 06/15/2041 --19,245.00 19,245.00 - 12/15/2041 420,000.00 4.450%19,245.00 439,245.00 458,490.00 06/15/2042 --9,900.00 9,900.00 - 12/15/2042 440,000.00 4.500%9,900.00 449,900.00 459,800.00 Total $7,645,000.00 -$3,489,032.92 $11,134,032.92 - Yield Statistics Bond Year Dollars $85,559.79 Average Life 11.192 Years Average Coupon 4.0778885% Net Interest Cost (NIC)4.2074500% True Interest Cost (TIC)4.2104582% Bond Yield for Arbitrage Purposes 4.0399780% All Inclusive Cost (AIC)4.2706823% IRS Form 8038 Net Interest Cost 4.0778885% Weighted Average Maturity 11.192 Years Optional Redemption 12/15/2030 @100.000% Northland Securities, Inc. Page 6 Tax Abatement Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/30/2022 ----- 06/15/2023 --189,241.98 189,241.98 - 12/15/2023 150,000.00 2.750%119,521.25 269,521.25 458,763.23 06/15/2024 --117,458.75 117,458.75 - 12/15/2024 225,000.00 2.900%117,458.75 342,458.75 459,917.50 06/15/2025 --114,196.25 114,196.25 - 12/15/2025 230,000.00 3.050%114,196.25 344,196.25 458,392.50 06/15/2026 --110,688.75 110,688.75 - 12/15/2026 240,000.00 3.150%110,688.75 350,688.75 461,377.50 06/15/2027 --106,908.75 106,908.75 - 12/15/2027 245,000.00 3.250%106,908.75 351,908.75 458,817.50 06/15/2028 --102,927.50 102,927.50 - 12/15/2028 255,000.00 3.400%102,927.50 357,927.50 460,855.00 06/15/2029 --98,592.50 98,592.50 - 12/15/2029 265,000.00 3.550%98,592.50 363,592.50 462,185.00 06/15/2030 --93,888.75 93,888.75 - 12/15/2030 275,000.00 3.650%93,888.75 368,888.75 462,777.50 06/15/2031 --88,870.00 88,870.00 - 12/15/2031 280,000.00 3.700%88,870.00 368,870.00 457,740.00 06/15/2032 --83,690.00 83,690.00 - 12/15/2032 295,000.00 3.800%83,690.00 378,690.00 462,380.00 06/15/2033 --78,085.00 78,085.00 - 12/15/2033 305,000.00 3.900%78,085.00 383,085.00 461,170.00 06/15/2034 --72,137.50 72,137.50 - 12/15/2034 315,000.00 4.050%72,137.50 387,137.50 459,275.00 06/15/2035 --65,758.75 65,758.75 - 12/15/2035 330,000.00 4.100%65,758.75 395,758.75 461,517.50 06/15/2036 --58,993.75 58,993.75 - 12/15/2036 340,000.00 4.150%58,993.75 398,993.75 457,987.50 06/15/2037 --51,938.75 51,938.75 - 12/15/2037 355,000.00 4.200%51,938.75 406,938.75 458,877.50 06/15/2038 --44,483.75 44,483.75 - 12/15/2038 370,000.00 4.300%44,483.75 414,483.75 458,967.50 06/15/2039 --36,528.75 36,528.75 - 12/15/2039 385,000.00 4.350%36,528.75 421,528.75 458,057.50 06/15/2040 --28,155.00 28,155.00 - 12/15/2040 405,000.00 4.400%28,155.00 433,155.00 461,310.00 06/15/2041 --19,245.00 19,245.00 - 12/15/2041 420,000.00 4.450%19,245.00 439,245.00 458,490.00 06/15/2042 --9,900.00 9,900.00 - 12/15/2042 440,000.00 4.500%9,900.00 449,900.00 459,800.00 Total $6,125,000.00 -$3,073,658.23 $9,198,658.23 - Northland Securities, Inc. Page 7 Equipment Portion Improvement Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/30/2022 ----- 06/15/2023 --18,655.63 18,655.63 - 12/15/2023 65,000.00 2.750%11,782.50 76,782.50 95,438.13 06/15/2024 --10,888.75 10,888.75 - 12/15/2024 75,000.00 2.900%10,888.75 85,888.75 96,777.50 06/15/2025 --9,801.25 9,801.25 - 12/15/2025 75,000.00 3.050%9,801.25 84,801.25 94,602.50 06/15/2026 --8,657.50 8,657.50 - 12/15/2026 75,000.00 3.150%8,657.50 83,657.50 92,315.00 06/15/2027 --7,476.25 7,476.25 - 12/15/2027 80,000.00 3.250%7,476.25 87,476.25 94,952.50 06/15/2028 --6,176.25 6,176.25 - 12/15/2028 80,000.00 3.400%6,176.25 86,176.25 92,352.50 06/15/2029 --4,816.25 4,816.25 - 12/15/2029 85,000.00 3.550%4,816.25 89,816.25 94,632.50 06/15/2030 --3,307.50 3,307.50 - 12/15/2030 90,000.00 3.650%3,307.50 93,307.50 96,615.00 06/15/2031 --1,665.00 1,665.00 - 12/15/2031 90,000.00 3.700%1,665.00 91,665.00 93,330.00 Total $715,000.00 -$136,015.63 $851,015.63 - Date Principal Coupon Interest Total P+I Fiscal Total 08/30/2022 ----- 06/15/2023 --23,245.31 23,245.31 - 12/15/2023 35,000.00 2.750%14,681.25 49,681.25 72,926.56 06/15/2024 --14,200.00 14,200.00 - 12/15/2024 45,000.00 2.900%14,200.00 59,200.00 73,400.00 06/15/2025 --13,547.50 13,547.50 - 12/15/2025 45,000.00 3.050%13,547.50 58,547.50 72,095.00 06/15/2026 --12,861.25 12,861.25 - 12/15/2026 45,000.00 3.150%12,861.25 57,861.25 70,722.50 06/15/2027 --12,152.50 12,152.50 - 12/15/2027 50,000.00 3.250%12,152.50 62,152.50 74,305.00 06/15/2028 --11,340.00 11,340.00 - 12/15/2028 50,000.00 3.400%11,340.00 61,340.00 72,680.00 06/15/2029 --10,490.00 10,490.00 - 12/15/2029 50,000.00 3.550%10,490.00 60,490.00 70,980.00 06/15/2030 --9,602.50 9,602.50 - 12/15/2030 55,000.00 3.650%9,602.50 64,602.50 74,205.00 06/15/2031 --8,598.75 8,598.75 - 12/15/2031 55,000.00 3.700%8,598.75 63,598.75 72,197.50 06/15/2032 --7,581.25 7,581.25 - 12/15/2032 55,000.00 3.800%7,581.25 62,581.25 70,162.50 06/15/2033 --6,536.25 6,536.25 - 12/15/2033 60,000.00 3.900%6,536.25 66,536.25 73,072.50 06/15/2034 --5,366.25 5,366.25 - 12/15/2034 60,000.00 4.050%5,366.25 65,366.25 70,732.50 06/15/2035 --4,151.25 4,151.25 - 12/15/2035 65,000.00 4.100%4,151.25 69,151.25 73,302.50 06/15/2036 --2,818.75 2,818.75 - 12/15/2036 65,000.00 4.150%2,818.75 67,818.75 70,637.50 06/15/2037 --1,470.00 1,470.00 - 12/15/2037 70,000.00 4.200%1,470.00 71,470.00 72,940.00 Total $805,000.00 -$279,359.06 $1,084,359.06 - Northland Securities, Inc. Page 8 Attachment 2 – Estimated Levy Schedules Tax Abatement Portion Equipment Portion Date Total P+I 105% Levy Less: Abatement Levy Net Levy Levy Year Collection Year 12/15/2022 ---- 12/15/2023 458,763.23 481,701.39 150,000.00 331,701.39 2022 2023 12/15/2024 459,917.50 482,913.38 225,000.00 257,913.38 2023 2024 12/15/2025 458,392.50 481,312.13 230,000.00 251,312.13 2024 2025 12/15/2026 461,377.50 484,446.38 240,000.00 244,446.38 2025 2026 12/15/2027 458,817.50 481,758.38 245,000.00 236,758.38 2026 2027 12/15/2028 460,855.00 483,897.75 255,000.00 228,897.75 2027 2028 12/15/2029 462,185.00 485,294.25 265,000.00 220,294.25 2028 2029 12/15/2030 462,777.50 485,916.38 275,000.00 210,916.38 2029 2030 12/15/2031 457,740.00 480,627.00 280,000.00 200,627.00 2030 2031 12/15/2032 462,380.00 485,499.00 295,000.00 190,499.00 2031 2032 12/15/2033 461,170.00 484,228.50 305,000.00 179,228.50 2032 2033 12/15/2034 459,275.00 482,238.75 315,000.00 167,238.75 2033 2034 12/15/2035 461,517.50 484,593.38 330,000.00 154,593.38 2034 2035 12/15/2036 457,987.50 480,886.88 340,000.00 140,886.88 2035 2036 12/15/2037 458,877.50 481,821.38 355,000.00 126,821.38 2036 2037 12/15/2038 458,967.50 481,915.88 370,000.00 111,915.88 2037 2038 12/15/2039 458,057.50 480,960.38 385,000.00 95,960.38 2038 2039 12/15/2040 461,310.00 484,375.50 405,000.00 79,375.50 2039 2040 12/15/2041 458,490.00 481,414.50 420,000.00 61,414.50 2040 2041 12/15/2042 459,800.00 482,790.00 440,000.00 42,790.00 2041 2042 Total $9,198,658.23 $9,658,591.14 $6,125,000.00 $3,533,591.14 Date Total P+I 105% Levy Levy Year Collection Year 12/15/2022 -- 12/15/2023 95,438.13 100,210.04 2022 2023 12/15/2024 96,777.50 101,616.38 2023 2024 12/15/2025 94,602.50 99,332.63 2024 2025 12/15/2026 92,315.00 96,930.75 2025 2026 12/15/2027 94,952.50 99,700.13 2026 2027 12/15/2028 92,352.50 96,970.13 2027 2028 12/15/2029 94,632.50 99,364.13 2028 2029 12/15/2030 96,615.00 101,445.75 2029 2030 12/15/2031 93,330.00 97,996.50 2030 2031 Total $851,015.63 $893,566.41 Northland Securities, Inc. Page 9 Improvement Portion Date Total P+I 105% Levy Less: Special Assessment Revenue*Net Levy Levy Ye a r Collection Year 12/15/2022 ---- 12/15/2023 72,926.56 76,572.89 20,570.44 56,002.45 2022 2023 12/15/2024 73,400.00 77,070.00 19,523.94 57,546.06 2023 2024 12/15/2025 72,095.00 75,699.75 18,896.04 56,803.71 2024 2025 12/15/2026 70,722.50 74,258.63 18,268.14 55,990.49 2025 2026 12/15/2027 74,305.00 78,020.25 17,640.24 60,380.01 2026 2027 12/15/2028 72,680.00 76,314.00 17,012.33 59,301.67 2027 2028 12/15/2029 70,980.00 74,529.00 16,384.43 58,144.57 2028 2029 12/15/2030 74,205.00 77,915.25 15,756.53 62,158.72 2029 2030 12/15/2031 72,197.50 75,807.38 15,128.63 60,678.75 2030 2031 12/15/2032 70,162.50 73,670.63 14,500.73 59,169.90 2031 2032 12/15/2033 73,072.50 76,726.13 13,872.83 62,853.30 2032 2033 12/15/2034 70,732.50 74,269.13 13,244.93 61,024.20 2033 2034 12/15/2035 73,302.50 76,967.63 12,617.03 64,350.60 2034 2035 12/15/2036 70,637.50 74,169.38 11,989.13 62,180.25 2035 2036 12/15/2037 72,940.00 76,587.00 11,361.23 65,225.77 2036 2037 Total $1,084,359.06 $1,138,577.01 $236,766.60 $901,810.41 *Special assessment revenue is based on assessments totaling $161,000 (20% of the Improvement Portion) assessed at a rate of 5.85% (2% over the average coupon, rounded to the nearest 0.05%), with equal annual principal payments. Northland Securities, Inc. Page 10 Attachment 3 – Related Considerations Bank Qualified We understand the City (in combination with any subordinate taxing jurisdictions or debt issued in the City’s name by 501(c)3 corporations) anticipates issuing $10,000,000 or less in tax-exempt debt during this calendar year. Therefore, the Bonds will be designated as “bank qualified” obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exception the City expects to qualify for is the “24-month spending exemption.” Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain “material events.” Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease agreements) must be reported within ten days of occurrence. The report contains annual financial information and operating data that “mirrors” material information presented in the Official Statement. The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement. Northland currently serves as dissemination agent for the City, assisting with the annual reporting. The information for the Bonds will be incorporated into the reporting. Premiums In the current market environment, it is likely that the proposed pricing will include premiums. A premium price occurs when the underwriter pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects the underwriter’s view on future market conditions, tax considerations for investors and other Northland Securities, Inc. Page 11 factors. Ultimately, the true interest cost calculation (“TIC”) will indicate the overall cost to the City, regardless of premium. A premium price produces additional funds that can be used in several ways: • The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the day of pricing to determine use of premium (if any). Rating A rating will be requested from Standard and Poor’s (S&P). The City’s general obligation debt is currently rated "AA-" by S&P. The rating process will include a conference call with the rating analyst. Northland will assist City staff in preparing for and conducting the rating call. Northland Securities, Inc. Page 12 Attachment 4 – Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Date Action Responsible Party May 27 City confirms parcels to be included for Tax Abatement for Recreation Center Project City Staff May 31 General Information Certificate Sent to City Northland June 1 Resolution calling for Tax Abatement public hearing and notice of hearing sent to City Letter sent to school district on behalf of City seeking taxing jurisdiction(s) to decline in writing to participate, which will provide authority for the City to approve Tax Abatement for term of 20 years Bond Counsel June 6 Resolution calling for Tax Abatement public hearing adopted Construction bids for street improvement project awarded City Council Action June 10 General Information Completed and Returned to Northland City Staff June 24 Preliminary Official Statement Sent Rating Agency and to City for Sign Off Northland June 2022 July 2022 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 1 2 5 6 7 8 9 10 11 3 4 5 6 7 8 9 12 13 14 15 16 17 18 10 11 12 13 14 15 16 19 20 21 22 23 24 25 17 18 19 20 21 22 23 26 27 28 29 30 24 25 26 27 28 29 30 31 August 2022 September 2022 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 9 10 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 Holiday Important Date Northland Securities, Inc. Page 13 Date Action Responsible Party June 25 Deadline for publication of notice of property tax abatement public hearing (must publish at least once more than 10 days prior to hearing date) City Staff June 27 Resolution approving Tax Abatement and authorizing issuance of Tax Abatement Bonds sent to City Trigger Resolution and Finance Plan sent to City Northland, Bond Counsel July 1 Confirm school district have declined in writing to participate in the Tax Abatement City Staff, Northland, Bond Counsel Week of July 4 or July 11 Rating Call Northland, City, Rating Agency July 5 Tax Abatement public hearing held Adopt Trigger Resolution and Review Finance Plan – 6:00 p.m. City Council Action July 6 RFP for Pricing Opinion Sent to Potential Municipal Advisors City Staff July 15 City to confirm project costs to be financed and provides pre-paid assessment amount to Northland City Staff July 20 RFP for Pricing Opinions Due, Municipal Advisor Selected Debt Study sent to City City Staff, Northland July 22 Rating Received Northland, City Staff, Rating Agency July 25 Awarding Resolution sent to City Northland, Bond Counsel August 1 Pricing Date Presentation of Debt Study Bond Purchase Contract Signed and Awarding Resolution adopted – 6:00 p.m. City Council Action August 30 Closing on the Bonds (Proceeds Available) Northland, City Staff, Bond Counsel Regular city council meeting dates Northland Securities, Inc. Page 14 Attachment 5 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, have not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Tax Abatement: The tax abatement levy needs to be calculated annually in accordance with the abatement resolution. The abatement levy must be included in the preliminary levy used for annual Truth in Taxation hearings. A tax abatement levy was authorized as a special levy (not subject to levy limits) under the most recent legislation. Levy limits are not currently enacted. The status of a tax abatement levy under future levy limitations (if any) cannot be predicted. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. • Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. Council Agenda Item 7 MEETING DATE: July 5, 2022 AGENDA ITEM: City Photos SUBMITTED BY: Administration PREVIOUS BOARD ACTION: None PREVIOUS COUNCIL ACTION: Council adopted the 2022 budget that includes contracting for staff/council photos. Council approved purchasing an ID maker for staff badges. BACKGROUND INFORMATION: The City hired Brad Veenstra to photograph council and committee members to post on public media. The photos are now outdated with past members and can no longer be used. Included in the 2022 budget are line items to update photos of council and city staff. The photos can be used on public sites such as the City’s website, Facebook page and ClearGov software if individuals signed the Consent for Release of Media form. In addition, the individual photos can be used to create staff badges with the new ID maker purchased earlier this year. The photos help the public identify who council members and the staff member(s) they are working with. Councilmember Beniek is a professional photographer who can assist with taking the photos. BUDGET/FISCAL IMPACT: ATTACHMENTS: None REQUESTED COUNCIL ACTION: Approve Councilmember Beniek to photograph council and staff. Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 2351 Connecticut Avenue, Suite 300, Sartell, MN 56377-2485 320.229.4300 | 800.572.0617 | 888.908.8166 fax SEH is 100% employee-owned | Affirmative Action–Equal Opportunity Employer June 28, 2022 RE: St. Joseph, Minnesota 2022 Morningside Acres Drainage Study SEH No. STJOE P-167739 10.03 Honorable Mayor and City Council c/o Mrs. Therese Haffner, Administrator City of St. Joseph 75 Callaway St E St. Joseph, MN 56374 Dear Mayor and Members of the Council: This letter supplements the Agreement for Professional Services between City of St. Joseph, Minnesota, Owner, and Short Elliott Hendrickson Inc. (SEH) dated July 1, 2006, and addresses providing Report Phase services in connection with studying drainage conditions and potential improvements in the Morningside Acres neighborhood (Lots 5-8, Block 1), hereinafter called the “Project”. Our services will consist of conducting an investigation, conducting a topographic survey of the flood-prone areas of the Project area, developing a 1D/2D computer model (XPSWMM) of the storm sewer network down to the storm sewer outlet to the existing pond, preparing a summary memo of the model findings and recommendations for alternatives for flood mitigation, and preparing planning-level opinion of probable costs for the top 2-3 alternatives, all as set forth in this letter and the Agreement for Professional Services between SEH and City of St. Joseph, Minnesota, dated July 1, 2006. We will also furnish such Additional Services as you may request or as required. Additional Services that may be provided, but are not included in the proposed scope of work, include: Boundary surveys. Wetland delineation, reporting, and permitting. Design and Construction Phase Services. You will pay us a fee for our services, currently estimated to be $21,690, in accordance with Exhibit C-2, Lump Sum method. Payment for additional services shall be based on the time required to perform the services and the billable rates for the principals and employees engaged directly on the Project, plus charges for expenses and equipment, all in accordance with Exhibit C-1. We will start our services promptly after receipt of your authorization. We estimate our services will be completed after 1.5 months. If there are delays in the Project that are beyond our control, you agree to grant additional time to complete the services. Honorable Mayor and City Council June 28, 2022 Page 2 Your budgetary limitations for construction of the Project should be provided to us in writing at an early date. We will endeavor to work within those limitations. Where appropriate, if the estimated cost exceeds the budget, we will either request an adjustment in the budget or suggest a revision in the extent or quality of the Project to assist in bringing construction cost back within the budget. We do not guarantee that our opinions of probable construction cost will not differ materially from negotiated prices or bids. If you wish greater assurance as to probable construction cost or if you wish formal estimates, an independent cost estimator should be employed as provided in Section IV.A. of the Agreement and in Exhibit B. This letter and the Agreement for Professional Services dated July 1, 2006, along with Exhibits A, B, C-1, and D represent the entire understanding between you and us in respect of the Project and may only be modified in writing signed by both of us. If it satisfactorily sets forth your understanding of our agreement, please sign the enclosed copy of this letter in the space provided below and return it to us. Sincerely, SHORT ELLIOTT HENDRICKSON INC. Randy Sabart, PE Principal (Lic. MN) mrb x:\pt\s\stjoe\167739\1-genl\10-setup-cont\03-proposal\2022.06.28 supplemental ltr agreement.docx Accepted by: City of St. Joseph, Minnesota By: Date: Authorized Client Signature Council Agenda Item 8b MEETING DATE: July 5, 2022 AGENDA ITEM: MnDOT Master Partnership Contract SUBMITTED BY: Engineer BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: Council approved the MnDOT Master Partnership Contract. BACKGROUND INFORMATION: Every several years, MnDOT re-executes this agreement with State-Aid cities. In St. Joseph’s case, it’s most commonly referenced on our State-Aid Construction contracts where MnDOT verification material testing is required. This agreement, though it has other “partnership” potentials (particularly in emergency events), is necessary in order for the State to perform the required lab testing and to invoice the City. I believe this instance may be the third or fourth instance of the agreement during my association with St. Joseph. BUDGET/FISCAL IMPACT: none ATTACHMENTS: Resolution 2022-037 Executing Master Partnership Contract-MnDOT MnDOT Master Partnership Contract REQUESTED COUNCIL ACTION: Approve Resolution 2022-037 executing the Master Partnership Contract with MnDOT. Sample Resolution 1 Updated 01/30/2020 RESOLUTION 2022-037 EXECUTING THE MASTER PARTNERSHIP CONTRACT WITH MNDOT WHEREAS, The Minnesota Department of Transportation wishes to cooperate closely with local units of government to coordinate the delivery of transportation services and maximize the efficient delivery of such services at all levels of government; and WHEREAS, MnDOT and local governments are authorized by Minnesota Statutes sections 471.59, 174.02, and 161.20, to undertake collaborative efforts for the design, construction, maintenance and operation of state and local roads; and WHEREAS: the parties wish to able to respond quickly and efficiently to such opportunities for collaboration, and have determined that having the ability to write “work orders” against a master contract would provide the greatest speed and flexibility in responding to identified needs. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: 1. That the City of St. Joseph enter into a Master Partnership Contract with the Minnesota Department of Transportation, a copy of which was before the Council. 2. That the proper City officers are authorized to execute such contract, and any amendments thereto. 3. That the City Engineer is authorized to negotiate work order contracts pursuant to the Master Contract, which work order contracts may provide for payment to or from MnDOT, and that the City Engineer may execute such work order contracts on behalf of the City of St. Joseph without further approval by this Council. ADOPTED by the City Council this 5th day of July, 2022. CITY OF ST. JOSEPH Rick Schultz, Mayor ATTEST Therese Haffner, Administrator  MnDOT Contract Number: 1050330  Master Partnership Contract Template 1  Updated 02/09/2022  STATE OF MINNESOTA  MASTER PARTNERSHIP CONTRACT    This master contract is between the State of Minnesota, acting through its Commissioner of Transportation in this  contract referred to as the “State” and the Saint Joseph City, acting through its City Council, in this contract referred to  as the “Other Party.”  Recitals  1. The parties are authorized to enter into this contract pursuant to Minnesota Statutes, §§15.061, 471.59 and 174.02.   2. Minn. Stat. § 161.20, subd. 2, authorizes the Commissioner of Transportation to make arrangements with and  cooperate with any governmental authority for the purposes of constructing, maintaining and improving the trunk  highway system.   3. Each party to this contract is a “road authority” as defined by Minn. Stat. §160.02, subd. 25.  4. Minn. Stat. § 161.39, subd. 1, authorizes a road authority to perform work for another road authority. Such work  may include providing technical and engineering advice, assistance and supervision, surveying, preparing plans for  the construction or reconstruction of roadways, and performing roadway maintenance.   5. Minn. Stat. §174.02, subd. 6, authorizes the Commissioner of Transportation to enter into contracts with other  governmental entities for research and experimentation; for sharing facilities, equipment, staff, data, or other  means of providing transportation‐related services; or for other cooperative programs that promote efficiencies in  providing governmental services, or that further development of innovation in transportation for the benefit of the  citizens of Minnesota.   6. Each party wishes to occasionally purchase services from the other party, which the parties agree will enhance the  efficiency of delivering governmental services at all levels. This Master Partnership Contract (MPC) provides a  framework for the efficient handling of such requests. This MPC contains terms generally governing the relationship  between the parties. When specific services are requested, the parties will (unless otherwise specified) enter into a  “Work Order” contracts.  7. After the execution of this MPC, the parties may (but are not required to) enter into “Work Order” contracts. These  Work Orders will specify the work to be done, timelines for completion, and compensation to be paid for the specific  work.  8. The parties are entering into this MPC to establish terms that will govern all of the Work Orders subsequently issued  under the authority of this Contract.  Contract  1. Term of Master Partnership Contract; Use of Work Order Contracts; Survival of Terms  1.1. Effective Date: This contract will be effective on July 1st, 2022, or upon the date last signed by all State  officials as required under Minn. Stat. § 16C.05, subd. 2, whichever occurs last. The Other Party must not  begin work under this Contract until ALL required signatures have been obtained and the Other Party has  been notified in writing to begin such work by the State’s Authorized Representative.  1.2. Expiration Date. This Contract will expire on June 30, 2027.  1.3. Exhibits. Exhibit A is attached and incorporated into this agreement.  1.4. Work Order Contracts. A work order contract must be negotiated and executed (by both the State and the  Other Party) for each particular engagement, except for Technical Services provided by the State to the  Other Party as specified in Article 2. The work order contract must specify the detailed scope of work and  deliverables for that project. A party must not begin work under a work order until the work order is fully   MnDOT Contract Number: 1050330   2  executed. The terms of this MPC will apply to all work orders contracts issued, unless specifically varied in  the work order. The Other Party understands that this MPC is not a guarantee of any payments or work  order assignments, and that payments will only be issued for work actually performed under fully‐executed  work orders.  1.5. Survival of Terms. The following clauses survive the expiration or cancellation of this master contract and all  work order contracts: 12. Liability; 13. State Audits; 14. Government Data Practices and Intellectual  Property; 17. Publicity; 18. Governing Law, Jurisdiction, and Venue; and 22. Data Disclosure. All terms of this  MPC will survive with respect to any work order contract issued prior to the expiration date of the MPC.  1.6. Sample Work Order. A sample work order contract is available upon request from the State.  1.7. Definition of “Providing Party” and “Requesting Party”. For the purpose of assigning certain duties and  obligations in the MPC to work order contracts, the following definitions will apply throughout the MPC.  “Requesting Party” is defined as the party requesting the other party to perform work under a work order  contract. “Providing Party” is defined as the party performing the scope of work under a work order  contract.  2. Technical Services  2.1. Technical Services include repetitive low‐cost services routinely performed by the State for the Other Party.  If requested and authorized by the Other Party, these services may be performed by the State for the Other  Party without the execution of a work order, as these services are provided in accordance with standardized  practices and processes and do not require a detailed scope of work. Exhibit A – Table of Technical Services  is attached.   2.1.1. Every other service not falling under the services listed in Exhibit A will require a work order contract  (If you have questions regarding whether a service is covered under 2.1.1, please contact Contract  Management).   2.2. The Other Party may request the State to perform Technical Services in an informal manner, such as by the  use of email, a purchase order, or by delivering materials to a State lab and requesting testing. A request  may be made via telephone, but will not be considered accepted unless acknowledged in writing by the  State.   2.3. The State will promptly inform the Other Party if the State will be unable to perform the requested Technical  Services. Otherwise, the State will perform the Technical Services in accordance with the State’s normal  processes and practices, including scheduling practices taking into account the availability of State staff and  equipment.   2.4. Payment Basis. Unless otherwise agreed to by the parties prior to performance of the services, the State will  charge the Other Party the State’s then‐current rate for performing the Technical Services. The then‐current  rate may include the State’s normal and customary additives. The State will invoice the Other Party upon  completion of the services, or at regular intervals not more than once monthly as agreed upon by the  parties. The invoice will provide a summary of the Technical Services provided by the State during the  invoice period.  3. Services Requiring a Work Order Contract  3.1. Work Order Contracts: A party may request the other party to perform any of the following services under  individual work order contracts.   3.2. Professional and Technical Services. A party may provide professional and technical services upon the  request of the other party. As defined by Minn. Stat. §16C.08, subd. 1, professional/technical services  “means services that are intellectual in character, including consultation, analysis, evaluation, prediction,  planning, programming, or recommendation; and result in the production of a report or completion of a  task.” Professional and technical services do not include providing supplies or materials except as incidental  to performing such services. Professional and technical services include (by way of example and without  limitation) cultural resources, engineering services, surveying, foundation recommendations and reports,  environmental documentation, right‐of‐way assistance (such as performing appraisals or providing   MnDOT Contract Number: 1050330   3  relocation assistance, but excluding the exercise of the power of eminent domain), geometric layouts, final  construction plans, graphic presentations, public relations, and facilitating open houses. A party will  normally provide such services with its own personnel; however, a party’s professional/technical services  may also include hiring and managing outside consultants to perform work provided that a party itself  provides active project management for the use of such outside consultants.  3.3. Roadway Maintenance. A party may provide roadway maintenance upon the request of the other party.  Roadway maintenance does not include roadway reconstruction. This work may include but is not limited to  snow removal, ditch spraying, roadside mowing, bituminous mill and overlay (only small projects), seal coat,  bridge hits, major retaining wall failures, major drainage failures, and message painting. All services must be  performed by an employee with sufficient skills, training, expertise or certification to perform such work,  and work must be supervised by a qualified employee of the party performing the work.   3.4. Construction Administration. A party may administer roadway construction projects upon the request of  the other party. Roadway construction includes (by way of example and without limitation) the  construction, reconstruction, or rehabilitation of mainline, shoulder, median, pedestrian or bicycle pathway,  lighting and signal systems, pavement mill and overlays, seal coating, guardrail installation, and  channelization. These services may be performed by the Providing Party’s own forces, or the Providing Party  may administer outside contracts for such work. Construction administration may include letting and  awarding construction contracts for such work (including state projects to be completed in conjunction with  local projects). All contract administration services must be performed by an employee with sufficient skills,  training, expertise or certification to perform such work.  3.5. Emergency Services. A party may provide aid upon request of the other party in the event of a man‐made  disaster, natural disaster or other act of God. Emergency services includes all those services as the parties  mutually agree are necessary to plan for, prepare for, deal with, and recover from emergency situations.  These services include, without limitation, planning, engineering, construction, maintenance, and removal  and disposal services related to things such as road closures, traffic control, debris removal, flood protection  and mitigation, sign repair, sandbag activities and general cleanup. Work will be performed by an employee  with sufficient skills, training, expertise or certification to perform such work, and work must be supervised  by a qualified employee of the party performing the work. If it is not feasible to have an executed work  order prior to performance of the work, the parties will promptly confer to determine whether work may be  commenced without a fully‐executed work order in place. If work commences without a fully‐executed work  order, the parties will follow up with execution of a work order as soon as feasible.  3.6. When a need is identified, the State and the Other Party will discuss the proposed work and the resources  needed to perform the work. If a party desires to perform such work, the parties will negotiate the specific  and detailed work tasks and cost. The State will then prepare a work order contract. Generally, a work order  contract will be limited to one specific project/engagement, although “on call” work orders may be prepared  for certain types of services, especially for “Technical Services” items as identified section 2.1.. The work  order will also identify specific deliverables required, and timeframes for completing work. A work order  must be fully executed by the parties prior to work being commenced. The Other Party will not be paid for  work performed prior to execution of a work order contract and authorization by the State.  4. Responsibilities of the Providing Party  4.1. Terms Applicable to ALL Work Order Contracts. The terms in this section 4.1 will apply to ALL work order  contracts.  4.1.1. Each work order will identify an Authorized Representative for each party. Each party’s authorized  representative is responsible for administering the work order, and has the authority to make any  decisions regarding the work, and to give and receive any notices required or permitted under this  MPC or the work order.  4.1.2. The Providing Party will furnish and assign a publicly employed licensed engineer (Project Engineer),  to be in responsible charge of the project(s) and to supervise and direct the work to be performed  under each work order contract. For services not requiring an engineer, the Providing Party will   MnDOT Contract Number: 1050330   4  furnish and assign another responsible employee to be in charge of the project. The services of the  Providing Party under a work order contract may not be otherwise assigned, sublet, or transferred  unless approved in writing by the Requesting Party’s authorized representative. This written consent  will in no way relieve the Providing Party from its primary responsibility for the work.   4.1.3. If the Other Party is the Providing Party, the Project Engineer may request in writing specific  engineering and/or technical services from the State, pursuant to Minn. Stat. Section 161.39. The  work order Contract will require the Other Party to deposit payment in advance. The costs and  expenses will include the current State additives and overhead rates, subject to adjustment based  on actual direct costs that have been verified by audit.  4.1.4. Only the receipt of a fully executed work order contract authorizes the Providing Party to begin work  on a project. Any and all effort, expenses, or actions taken by the Providing Party before the work  order contract is fully executed are considered unauthorized and undertaken at the risk of non‐ payment.  4.1.5. In connection with the performance of this contract and any work orders issued, the Providing  Agency will comply with all applicable Federal and State laws and regulations. When the Providing  Party is authorized or permitted to award contracts in connection with any work order, the  Providing Party will require and cause its contractors and subcontractors to comply with all Federal  and State laws and regulations.  4.2. Additional Terms for Roadway Maintenance. The terms of section 4.1 and this section 4.2 will apply to all  work orders for Roadway Maintenance.  4.2.1. Unless otherwise provided for by contract or work order, the Providing Party must obtain all permits  and sanctions that may be required for the proper and lawful performance of the work.  4.2.2. The Providing Party must perform maintenance in accordance with MnDOT maintenance manuals,  policies and operations.  4.2.3. The Providing Party must use State‐approved materials, including (by way of example and without  limitation), sign posts, sign sheeting, and de‐icing and anti‐icing chemicals.  4.3. Additional Terms for Construction Administration. The terms of section 4.1 and this section 4.3 will apply to  all work order contracts for construction administration.  4.3.1. Contract(s) must be awarded to the lowest responsible bidder or best value proposer in accordance  with state law.  4.3.2. Contractor(s) must be required to post payment and performance bonds in an amount equal to the  contract amount. The Providing Party will take all necessary action to make claims against such  bonds in the event of any default by the contractor.  4.3.3. Contractor(s) must be required to perform work in accordance with the latest edition of the  Minnesota Department of Transportation Standard Specifications for Construction.  4.3.4. For work performed on State right‐of‐way, contractor(s) must be required to indemnify and hold the  State harmless against any loss incurred with respect to the performance of the contracted work,  and must be required to provide evidence of insurance coverage commensurate with project risk.  4.3.5. Contractor(s) must pay prevailing wages pursuant to applicable state and federal law.  4.3.6. Contractor(s) must comply with all applicable Federal, and State laws, ordinances and regulations,  including but not limited to applicable human rights/anti‐discrimination laws and laws concerning  the participation of Disadvantaged Business Enterprises in federally‐assisted contracts.  4.3.7. Unless otherwise agreed in a work order contract, each party will be responsible for providing rights  of way, easement, and construction permits for its portion of the improvements. Each party will,  upon the other’s request, furnish copies of right of way certificates, easements, and construction  permits.   MnDOT Contract Number: 1050330   5  4.3.8. The Providing Party may approve minor changes to the Requesting Party’s portion of the project  work if such changes do not increase the Requesting Party’s cost obligation under the applicable  work order contract.  4.3.9. The Providing Party will not approve any contractor claims for additional compensation without the  Requesting Party’s written approval, and the execution of a proper amendment to the applicable  work order contract when necessary. The Other Party will tender the processing and defense of any  such claims to the State upon the State’s request.  4.3.10. The Other Party must coordinate all trunk highway work affecting any utilities with the State’s  Utilities Office.  4.3.11. The Providing Party must coordinate all necessary detours with the Requesting Party.   4.3.12. If the Other Party is the Providing Party, and there is work performed on the trunk highway right‐of‐ way, the following will apply:  a. The Other Party will have a permit to perform the work on the trunk highway. The State may  revoke this permit if the work is not being performed in a safe, proper and skillful manner, or if  the contractor is violating the terms of any law, regulation, or permit applicable to the work. The  State will have no liability to the Other Party, or its contractor, if work is suspended or stopped  due to any such condition or concern.  b. The Other Party will require its contractor to conduct all traffic control in accordance with the  Minnesota Manual on Uniform Traffic Control Devices.  c. The Other Party will require its contractor to comply with the terms of all permits issued for the  project including, but not limited to, National Pollutant Discharge Elimination System (NPDES)  and other environmental permits.  d. All improvements constructed on the State’s right‐of‐way will become the property of the State.  5. Responsibilities of the Requesting Party  5.1. After authorizing the Providing Party to begin work, the Requesting Party will furnish any data or material in  its possession relating to the project that may be of use to the Providing Party in performing the work.  5.2. All such data furnished to the Providing Party will remain the property of the Requesting Party and will be  promptly returned upon the Requesting Party’s request or upon the expiration or termination of this  contract (subject to data retention requirements of the Minnesota Government Data Practices Act and other  applicable law).  5.3. The Providing Party will analyze all such data furnished by the Requesting Party. If the Providing Party finds  any such data to be incorrect or incomplete, the Providing Party will bring the facts to the attention of the  Requesting Party before proceeding with the part of the project affected. The Providing Party will  investigate the matter, and if it finds that such data is incorrect or incomplete, it will promptly determine a  method for furnishing corrected data. Delay in furnishing data will not be considered justification for an  adjustment in compensation.  5.4. The State will provide to the Other Party copies of any Trunk Highway fund clauses to be included in the bid  solicitation and will provide any required Trunk Highway fund provisions to be included in the Proposal for  Highway Construction, that are different from those required for State Aid construction.  5.5. The Requesting Party will perform final reviews and inspections of its portion of the project work. If the  work is found to have been completed in accordance with the work order contract, the Requesting Party will  promptly release any remaining funds due the Providing Party for the Project(s).  5.6. The work order contracts may include additional responsibilities to be completed by the Requesting Party.  6. Time  6.1. In the performance of project work under a work order contract, time is of the essence.  7. Consideration and Payment   MnDOT Contract Number: 1050330   6  7.1. Consideration. The Requesting Party will pay the Providing Party as specified in the work order. The State’s  normal and customary additives will apply to work performed by the State, unless otherwise specified in the  work order. The State’s normal and customary additives will not apply if the parties agree to a “lump sum”  or “unit rate” payment.  7.2. State’s Maximum Obligation. The total compensation to be paid by the State to the Other Party under all  work order contracts issued pursuant to this MPC will not exceed $100,000.00.  7.3. Travel Expenses. It is anticipated that all travel expenses will be included in the base cost of the Providing  Party’s services, and unless otherwise specifically set forth in an applicable work order contract, the  Providing Party will not be separately reimbursed for travel and subsistence expenses incurred by the  Providing Party in performing any work order contract. In those cases where the State agrees to reimburse  travel expenses, such expenses will be reimbursed in the same manner and in no greater amount than  provided in the current "MnDOT Travel Regulations” a copy of which is on file with and available from the  MnDOT District Office. The Other Party will not be reimbursed for travel and subsistence expenses incurred  outside of Minnesota unless it has received the State’s prior written approval for such travel.  7.4. Payment  7.4.1. Generally. The Requesting Party will pay the Providing Party as specified in the applicable work  order, and will make prompt payment in accordance with Minnesota law.  7.4.2. Payment by the Other Party.   a. The Other Party will make payment to the order of the Commissioner of Transportation.   b. IMPORTANT NOTE: PAYMENT MUST REFERENCE THE “MNDOT CONTRACT NUMBER” SHOWN ON  THE FACE PAGE OF THIS CONTRACT AND THE “INVOICE NUMBER” ON THE INVOICE RECEIVED  FROM MNDOT.   c. Remit payment to the address below:  MnDOT   Attn: Cash Accounting  RE: MnDOT Contract Number 1050330W[XX] and Invoice Number:  00000[#####]  (see note above)  Mail Stop 215  395 John Ireland Blvd  St. Paul, MN 55155  7.4.3. Payment by the State.  a. Generally. The State will promptly pay the Other Party after the Other Party presents an itemized  invoice for the services actually performed and the State's Authorized Representative accepts the  invoiced services. Invoices must be submitted as specified in the applicable work order, but no  more frequently than monthly.   b. Retainage for Professional and Technical Services. For work orders for professional and technical  services, as required by Minn. Stat. § 16C.08, subd. 2(10), no more than 90 percent of the  amount due under any work order contract may be paid until the final product of the work order  contract has been reviewed by the State’s authorized representative. The balance due will be  paid when the State’s authorized representative determines that the Other Party has  satisfactorily fulfilled all the terms of the work order contract.   8. Conditions of Payment  8.1. All work performed by the Providing Party under a work order contract must be performed to the  Requesting Party’s satisfaction, as determined at the sole and reasonable discretion of the Requesting  Party’s Authorized Representative and in accordance with all applicable federal and state laws, rules, and   MnDOT Contract Number: 1050330   7  regulations. The Providing Party will not receive payment for work found by the Requesting Party to be  unsatisfactory or performed in violation of federal or state law.  9. State’s Authorized Representative and Project Manager  9.1. The State's Authorized Representative for this master contract is the District State Aid Engineer, who has the  responsibility to monitor the State’s performance.  9.2. The State’s Project Manager will be identified in each work order contract.   10. Other Party’s Authorized Representative and Project Manager  10.1. The Other Party’s Authorized Representative for administering this master contract is the Other Party’s  Engineer, and the Engineer has the responsibility to monitor the Other Party’s performance. The Other  Party’s Authorized Representative is also authorized to execute work order contracts on behalf of the Other  Party without approval of each proposed work order contract by its governing body.  10.2. The Other Party’s Project Manager will be identified in each work order contract.   11. Assignment, Amendments, Waiver, and Contract Complete  11.1. Assignment. Neither party may assign or transfer any rights or obligations under this MPC or any work order  contract without the prior consent of the other and a fully executed Assignment Contract, executed and  approved by the same parties who executed and approved this MPC, or their successors in office.  11.2. Amendments. Any amendment to this master contract or any work order contract must be in writing and  will not be effective until it has been executed and approved by the same parties who executed and  approved the original contract, or their successors in office.  11.3. Waiver. If a party fails to enforce any provision of this master contract or any work order contract, that  failure does not waive the provision or the party’s right to subsequently enforce it.  11.4. Contract Complete. This master contract and any work order contract contain all negotiations and contracts  between the State and the Other Party. No other understanding regarding this master contract or any work  order contract issued hereunder, whether written or oral may be used to bind either party.  12. Liability  12.1. Each party will be responsible for its own acts and omissions to the extent provided by law. The Other  Party’s liability is governed by Minn. Stat. chapter 466 and other applicable law. The State’s liability is  governed by Minn. Stat. section 3.736 and other applicable law. This clause will not be construed to bar any  legal remedies a party may have for the other party’s failure to fulfill its obligations under this master  contract or any work order contract. Neither party agrees to assume any environmental liability on behalf of  the other party. A Providing Party under any work order is acting only as a “Contractor” to the Requesting  Party, as the term “Contractor” is defined in Minn. Stat. §115B.03 (subd. 10), and is entitled to the  protections afforded to a “Contractor” by the Minnesota Environmental Response and Liability Act. The  parties specifically intend that Minn. Stat. §471.59 subd. 1a will apply to any work undertaken under this  MPC and any work order issued hereunder.  13. State Audits  13.1. Under Minn. Stat. § 16C.05, subd. 5, the party’s books, records, documents, and accounting procedures and  practices relevant to any work order contract are subject to examination by the parties and by the State  Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this MPC.  14. Government Data Practices and Intellectual Property  14.1. Government Data Practices. The Other Party and State must comply with the Minnesota Government Data  Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this MPC and any work  order contract, and as it applies to all data created, collected, received, stored, used, maintained, or  disseminated by the Other Party under this MPC and any work order contract. The civil remedies of Minn.  Stat. § 13.08 apply to the release of the data referred to in this clause by either the Other Party or the State.  14.2. Intellectual Property Rights   MnDOT Contract Number: 1050330   8  14.2.1. Intellectual Property Rights. The Requesting Party will own all rights, title, and interest in all of the  intellectual property rights, including copyrights, patents, trade secrets, trademarks, and service  marks in the Works and Documents created and paid for under work order contracts. Works means  all inventions, improvements, discoveries (whether or not patentable), databases, computer  programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications,  materials, tapes, and disks conceived, reduced to practice, created or originated by the Providing  Party, its employees, agents, and subcontractors, either individually or jointly with others in the  performance of this master contract or any work order contract. Works includes “Documents.”  Documents are the originals of any databases, computer programs, reports, notes, studies,  photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials,  whether in tangible or electronic forms, prepared by the Providing Party, its employees, agents, or  contractors, in the performance of a work order contract. The Documents will be the exclusive  property of the Requesting Party and all such Documents must be immediately returned to the  Requesting Party by the Providing Party upon completion or cancellation of the work order contract.  To the extent possible, those Works eligible for copyright protection under the United States  Copyright Act will be deemed to be “works made for hire.” The Providing Party Government assigns  all right, title, and interest it may have in the Works and the Documents to the Requesting Party. The  Providing Party must, at the request of the Requesting Party, execute all papers and perform all  other acts necessary to transfer or record the Requesting Party’s ownership interest in the Works  and Documents. Notwithstanding the foregoing, the Requesting Party grants the Providing Party an  irrevocable and royalty‐free license to use such intellectual property for its own non‐commercial  purposes, including dissemination to political subdivisions of the state of Minnesota and to  transportation‐related agencies such as the American Association of State Highway and  Transportation Officials.  14.2.2. Obligations with Respect to Intellectual Property.  a. Notification. Whenever any invention, improvement, or discovery (whether or not patentable) is  made or conceived for the first time or actually or constructively reduced to practice by the  Providing Party, including its employees and subcontractors, in the performance of the work  order contract, the Providing Party will immediately give the Requesting Party’s Authorized  Representative written notice thereof, and must promptly furnish the Authorized Representative  with complete information and/or disclosure thereon.  b. Representation. The Providing Party must perform all acts, and take all steps necessary to ensure  that all intellectual property rights in the Works and Documents are the sole property of the  Requesting Party, and that neither Providing Party nor its employees, agents or contractors retain  any interest in and to the Works and Documents.   15. Affirmative Action  15.1. The State intends to carry out its responsibility for requiring affirmative action by its Contractors, pursuant  to Minn. Stat. §363A.36. Pursuant to that Statute, the Other Party is encouraged to prepare and implement  an affirmative action plan for the employment of minority persons, women, and the qualified disabled, and  submit such plan to the Commissioner of the Minnesota Department of Human Rights. In addition, when the  Other Party lets a contract for the performance of work under a work order issued pursuant to this MPC, it  must include the following in the bid or proposal solicitation and any contracts awarded as a result thereof:  15.2. Covered Contracts and Contractors. If the Contract exceeds $100,000 and the Contractor employed more  than 40 full‐time employees on a single working day during the previous 12 months in Minnesota or in the  state where it has its principle place of business, then the Contractor must comply with the requirements of  Minn. Stat. § 363A.36 and Minn. R. Parts 5000.3400‐5000.3600. A Contractor covered by Minn. Stat. §  363A.36 because it employed more than 40 full‐time employees in another state and does not have a  certificate of compliance, must certify that it is in compliance with federal affirmative action requirements.   MnDOT Contract Number: 1050330   9  15.3. Minn. Stat. § 363A.36. Minn. Stat. § 363A.36 requires the Contractor to have an affirmative action plan for  the employment of minority persons, women, and qualified disabled individuals approved by the Minnesota  Commissioner of Human Rights (“Commissioner”) as indicated by a certificate of compliance. The law  addresses suspension or revocation of a certificate of compliance and contract consequences in that event.  A contract awarded without a certificate of compliance may be voided.   15.4. Minn. R. Parts 5000.3400‐5000.3600.   15.4.1. General. Minn. R. Parts 5000.3400‐5000.3600 implement Minn. Stat. § 363A.36. These rules include,  but are not limited to, criteria for contents, approval, and implementation of affirmative action  plans; procedures for issuing certificates of compliance and criteria for determining a contractor’s  compliance status; procedures for addressing deficiencies, sanctions, and notice and hearing; annual  compliance reports; procedures for compliance review; and contract consequences for non‐ compliance. The specific criteria for approval or rejection of an affirmative action plan are contained  in various provisions of Minn. R. Parts 5000.3400‐5000.3600 including, but not limited to, parts  5000.3420‐5000.3500 and 5000.3552‐5000.3559.   15.4.2. Disabled Workers. The Contractor must comply with the following affirmative action requirements  for disabled workers:   a. The Contractor must not discriminate against any employee or applicant for employment  because of physical or mental disability in regard to any position for which the employee or  applicant for employment is qualified. The Contractor agrees to take affirmative action to  employ, advance in employment, and otherwise treat qualified disabled persons without  discrimination based upon their physical or mental disability in all employment practices such as  the following: employment, upgrading, demotion or transfer, recruitment, advertising, layoff or  termination, rates of pay or other forms of compensation, and selection for training, including  apprenticeship.  b. The Contractor agrees to comply with the rules and relevant orders of the Minnesota  Department of Human Rights issued pursuant to the Minnesota Human Rights Act.  c. In the event of the Contractor's noncompliance with the requirements of this clause, actions for  noncompliance may be taken in accordance with Minn. Stat. Section 363A.36, and the rules and  relevant orders of the Minnesota Department of Human Rights issued pursuant to the Minnesota  Human Rights Act.  d. The Contractor agrees to post in conspicuous places, available to employees and applicants for  employment, notices in a form to be prescribed by the commissioner of the Minnesota  Department of Human Rights. Such notices must state the Contractor's obligation under the law  to take affirmative action to employ and advance in employment qualified disabled employees  and applicants for employment, and the rights of applicants and employees.  e. The Contractor must notify each labor union or representative of workers with which it has a  collective bargaining agreement or other contract understanding, that the Contractor is bound by  the terms of Minn. Stat. Section 363A.36, of the Minnesota Human Rights Act and is committed  to take affirmative action to employ and advance in employment physically and mentally  disabled persons.  15.4.3. Consequences. The consequences for the Contractor’s failure to implement its affirmative action  plan or make a good faith effort to do so include, but are not limited to, suspension or revocation of  a certificate of compliance by the Commissioner, refusal by the Commissioner to approve  subsequent plans, and termination of all or part of this contract by the Commissioner or the State.  15.4.4. Certification. The Contractor hereby certifies that it is in compliance with the requirements of Minn.  Stat. § 363A.36 and Minn. R. Parts 5000.3400‐5000.3600 and is aware of the consequences for  noncompliance.  16. Workers’ Compensation   MnDOT Contract Number: 1050330   10  16.1. Each party will be responsible for its own employees for any workers compensation claims. This MPC, and  any work order contracts issued hereunder, are not intended to constitute an interchange of government  employees under Minn. Stat. §15.53. To the extent that this MPC, or any work order issued hereunder, is  determined to be subject to Minn. Stat. §15.53, such statute will control to the extent of any conflict  between the contract and the statute.   17. Publicity  17.1. Publicity. Any publicity regarding the subject matter of a work order contract where the State is the  Requesting Party must identify the State as the sponsoring agency and must not be released without prior  written approval from the State’s Authorized Representative. For purposes of this provision, publicity  includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices  prepared by or for the Other Party individually or jointly with others, or any subcontractors, with respect to  the program, publications, or services provided resulting from a work order contract.   17.2. Data Practices Act. Section 17.1 is not intended to override the Other Party’s responsibilities under the  Minnesota Government Data Practices Act.  18. Governing Law, Jurisdiction, and Venue  18.1. Minnesota law, without regard to its choice‐of‐law provisions, governs this master contract and all work  order contracts. Venue for all legal proceedings out of this master contract or any work order contracts, or  the breach of any such contracts, must be in the appropriate state or federal court with competent  jurisdiction in Ramsey County, Minnesota.  19. Prompt Payment; Payment to Subcontractors  19.1. The parties must make prompt payment of their obligations in accordance with applicable law. As required  by Minn. Stat. § 16A.1245, when the Other Party lets a contract for work pursuant to any work order, the  Other Party must require its contractor to pay all subcontractors, less any retainage, within 10 calendar days  of the prime contractor's receipt of payment from the Other Party for undisputed services provided by the  subcontractor(s) and must pay interest at the rate of one and one‐half percent per month or any part of a  month to the subcontractor(s) on any undisputed amount not paid on time to the subcontractor(s).  20. Minn. Stat. § 181.59.  20.1. The Other Party will comply with the provisions of Minn. Stat. § 181.59 which requires: Every contract for or  on behalf of the state of Minnesota, or any county, city, town, township, school, school district, or any other  district in the state, for materials, supplies, or construction shall contain provisions by which the Contractor  agrees: (1) That, in the hiring of common or skilled labor for the performance of any work under any  contract, or any subcontract, no contractor, material supplier, or vendor, shall, by reason of race, creed, or  color, discriminate against the person or persons who are citizens of the United States or resident aliens  who are qualified and available to perform the work to which the employment relates; (2) That no  contractor, material supplier, or vendor, shall, in any manner, discriminate against, or intimidate, or prevent  the employment of any person or persons identified in clause (1) of this section, or on being hired, prevent,  or conspire to prevent, the person or persons from the performance of work under any contract on account  of race, creed, or color; (3) That a violation of this section is a misdemeanor; and (4) That this contract may  be canceled or terminated by the state, county, city, town, school board, or any other person authorized to  grant the contracts for employment, and all money due, or to become due under the contract, may be  forfeited for a second or any subsequent violation of the terms or conditions of this contract.   21. Termination; Suspension  21.1. Termination by the State for Convenience. The State or commissioner of Administration may cancel this  MPC and any work order contracts at any time, with or without cause, upon 30 days written notice to the  Other Party. Upon termination, the Other Party and the State will be entitled to payment, determined on a  pro rata basis, for services satisfactorily performed.  21.2. Termination by the Other Party for Convenience. The Other Party may cancel this MPC and any work order  contracts at any time, with or without cause, upon 30 days written notice to the State. Upon termination,   MnDOT Contract Number: 1050330   11  the Other Party and the State will be entitled to payment, determined on a pro rata basis, for services  satisfactorily performed.  21.3. Termination for Insufficient Funding. The State may immediately terminate or suspend this MPC and any  work order contract if it does not obtain funding from the Minnesota legislature or other funding source; or  if funding cannot be continued at a level sufficient to allow for the payment of the services covered here.  Termination or suspension must be by written or fax notice to the Other Party. The State is not obligated to  pay for any services that are provided after notice and effective date of termination or suspension.  However, the Other Party will be entitled to payment, determined on a pro rata basis, for services  satisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if  the master contract or work order is terminated because of the decision of the Minnesota legislature or  other funding source, not to appropriate funds. The State must provide the Other Party notice of the lack of  funding within a reasonable time of the State’s receiving that notice.  22. Data Disclosure  22.1. Under Minn. Stat. §270C.65, subd. 3, and other applicable law, the Other Party consents to disclosure of its  federal employer tax identification number, and/or Minnesota tax identification number, already provided  to the State, to federal and state tax agencies and state personnel involved in the payment of state  obligations. These identification numbers may be used in the enforcement of federal and state tax laws  which could result in action requiring the Other Party to file state tax returns and pay delinquent state tax  liabilities, if any.   23. Defense of Claims and Lawsuits  23.1. If any lawsuit or claim is filed by a third party (including but not limited to the Other Party’s contractors and  subcontractors), arising out of trunk highway work performed pursuant to a valid work order issued under  this MPC, the Other Party will, at the discretion of and upon the request of the State, tender the defense of  such claims to the State or allow the State to participate in the defense of such claims. The Other Party will,  however, be solely responsible for defending any lawsuit or claim, or any portion thereof, when the claim or  cause of action asserted is based on its own acts or omissions in performing or supervising the work. The  Other Party will not purport to represent the State in any litigation, settlement, or alternative dispute  resolution process. The State will not be responsible for any judgment entered against the Other Party, and  will not be bound by the terms of any settlement entered into by the Other Party except with the written  approval of the Attorney General and the Commissioner of Transportation and pursuant to applicable law.  24. Additional Provisions  24.1. NONE  [THE BALANCE OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK]    MnDOT Contract Number: 1050330   12    OTHER PARTY  The Other Party certifies that the appropriate person(s)  have executed the contract on behalf of the Other Party  as required by applicable articles, bylaws, resolutions or  ordinances.  By:    Title:     Date:     By:     Title:     Date:     COMMISSIONER OF TRANSPORTATION  By:     Date:     Title:       COMMISSIONER OF ADMINISTRATION  By:     Date:     Exhibit A – Table of Technical Services Master Partnership Contract Program FY 2023-2027 Date: 3/28/2022 Source Code Title Description 1735 Bituminous Plant Inspection Performing QA/QC physical testing at the plant; sampling and transporting of materials from the plant to the lab for lab testing, plant reviews, and operations; investigating plant discrepancies; and other technical services in the plant or office associated with bituminous plant inspection. 2830 Bridge Bearing Assemblies All tasks related to the repair and maintenance of fixed or expansion-bearing assemblies on bridges. Includes related traffic 2819 Bridge Curb, Walk And Railing Repairing and maintaining bridge curb, walk, rail, coping, and fencing connected to the rail. Includes glare screen and median barriers on bridges. Includes related traffic control. 2820 Bridge Deck Work associated with bridge deck and slab repair regardless of removal depth or type of material used for patching. Includes deck or slab overlays and replacements and underside deck delamination. Includes related traffic control. 2838 Bridge Deck Crack Sealing All tasks related to deck crack sealing. Includes related traffic control. 2827 Bridge Expansion, Relief Joints All maintenance tasks associated with bridge expansion joints, except joint reestablishment. Includes tightening expansion device bolts and replacing seal glands. Includes related traffic control. 2855 Bridge Inspection Direct Support Activities that support bridge inspection, but are not direct production (i.e., leadership, technical, administrative assistance. 2828 Bridge Inspection-Federal Fund All bridge inspection tasks for non-MnDOT bridges funded by the federal Fracture-Critical Bridge Program (Project Code will begin with TSL and with the local bridge number). Includes related inspection reports. For MnDOT Trunk Highway bridges (Project Code begins with TSO followed by the bridge number) and local and Department of Natural Resources (DNR) (bridge number begins with 9A follow by bridge number) bridge inspections to be billed to the local government or Department of Natural Resources (DNR) use Source Code 2824. 2824 Bridge Inspection-Non-Federal All tasks related to inventory, inspection, and load capacity rating work done on trunk highway bridges to meet the requirements of the National Bridge Inspection System and/or Minnesota Bridge Safety Inspection Program or for billing to local governments. Includes related inspection reports and deck condition surveys. 1421 Bridge Management System Operation/Administration/Data Use for tasks related to the Bridge Management System, including operations, administration, or data entry. 2847 Bridge Poured/ Relief Joint Seal All tasks associated with resealing bridge construction joints. Includes related traffic control. Related source type codes: Activities that support bridge inspection, but are not direct production (i.e., leadership, technical, administrative assistance). 2829 Bridge Superstructure All tasks to repair any bridge component above the bridge seat that is not included in other source codes. Includes repairs to all types of bridge superstructure elements such as girders, beams, floor beams, trusses, stringers, t-beams, precast channels, and box girders. Includes related traffic control. 2316 Brush & Tree Removal Maintaining, watering, trimming, and removing highway right of way tree and brush. Includes chipping of tree limbs and stump removal/grinding. Includes related traffic control. 0032 Business Unit Management All expenses of business/office managers for general management and administration of support functions. includes administering central facilities maintenance and facilities capital budgets. 3000 Class Of Frequency Coordination Use for frequency coordination done with APCO, AASHTO or FCCA. Page 1 of 5 Source Code Title Description 1733 Concrete Plant Inspections Performing QA/QC physical testing at the plant; sampling and transporting of materials from the plant to the lab for lab testing, plant reviews, and operations; investigating plant discrepancies; and other technical services in the plant or office associated with stationary concrete plants or mobile concrete paving plant inspection. 1734 Construction Materials Inspections Performing construction phase material inspection and engineering, for structural steel, precast and pre-stressed concrete, reinforcement steel, and electrical products and related technical services in the field and office for materials to be used in multiple projects. Includes travel time, sampling, and sample delivery. Includes tasks related to reviewing shop drawings furnished by suppliers or fabricators and contractor working drawings or calculations, and for tasks related to structural metals inspection (materials surveys, physical and chemical laboratory testing, material inspection and engineering, and technical services in the field and offices). 1802 Construction Surveying Use for surveys to provide staking for the contractor's operations and for any other construction phase surveying 2106 Crack Sealing All surface crack sealing, crack filling, or rout and seal operations. Includes related materials, hauling, stockpiling, and traffic control. 3023 Elec Comm Eq Rep - Miles 0400 Equipment Calibration-Mat Insp Use when performing periodic equipment calibration for equipment used in the materials lab or on construction projects. 1800 Field Inspection All construction project field inspection (not cyclical inspection of assets), including preparatory plans & spec review, measurement, and verification other than environmental monitoring. Includes field inspection of materials such as gradations, densities/DCP, proctors, compaction, slump tests, and field air tests. Witnessing claims, determination and computation of pay quantities, materials control and certification for progress vouchers, but not for final payments. Includes collecting and transporting samples for lab tests, but not the actual laboratory verifications. Includes all construction phase project related activities for project and resident engineers such as problem resolution, guidance and direction to field technicians. Includes all miscellaneous field engineering expenses used by district offices such as space rental, utilities, or other costs charged to the construction project Includes all work associated with evaluation of implementation of intelligent compaction devices to determine if construction contract terms have been met. 1040 Final Design Surveys All district field and office tasks needed to respond to supplemental "Requests for Survey Data" and add the data to the surveys base map or DTM. 0601 Gen Training Preparation - Delivery Use for time, materials, and travel expenses when developing or delivering training. includes course preparation, designing materials, and managing training records. 2210 Guardrail-Install/Repair/Maintenance Install, repair, or maintain low tension cable, plate beams, and end treatments; cable tension adjustments; and reflector replacement. includes related traffic control. 2624 Indirect Expense Indirect shop expenses and shop equipment. Allocate to mobile equipment. 1871 Lighting Maintenance & Utilities All work related to installing, maintaining, restoring, or removing highway lighting systems and fixtures. Includes repairing, maintaining, or replacing supports necessary for roadway lighting luminaries. Includes patrol highway lighting, inspect lighting structures, electrical service for highway lighting, re-lamping, pump stations, anti-icing systems, truck roll-over warning systems and electrical repairs. Includes traffic control in support of roadway lighting activities. Use for tasks related to public inquiries/complaints, review utility billings, provide data, and conduct field reviews. Page 2 of 5 Source Code Title Description 1875 Locate One Call Finding and marking locations of buried conduit, cables, hand holes, loops, etc. in order to maintain or repair the traffic management system, signal systems, or roadway lighting systems. 1732 Material Testing & Inspection Performing construction phase and research physical and chemical laboratory testing, and related technical services in the districts and central labs, and for performing research and construction phase non-destructive testing materials surveys, and related technical services in the field and offices. Includes detour surveys. Non-destructive tests include, skid resistance and falling weight deflectometer (FWD) testing. 2660 Misc Revenue Used only by Office of Financial Management for billing and deposit transactions and to record payments to the department for gravel sold to contractors and others. 2822 Miscellaneous Bridge Maintenance Miscellaneous maintenance tasks performed on a specific bridge or structure not covered by other source codes. Includes work on items such as stairways, drains, fencing, light bases, transient guards, and access doors. Includes transient removal, ordering materials, and picking up equipment. Includes related traffic control. 3049 On Call Electronic Communications Infrastructure Maintenance To be used by Statewide Radio Communications personnel to record on-call time. 2142 Overhead Sign Panel Maintenance Work related to the repair and replacement of overhead sign panels, extruded sign panels mounted on I-beams, and overhead sign structures. Includes related cable locates and traffic control. Does not include structural work. 2102 Patching Related source type codes: 2103-Heavy patching, 2104-Bituminous paving, 2105-Blow patching 1520 Pavement Management System For tasks related to the operation of the pavement management system, including development and maintenance/technical support. Includes tasks to meet needs external to MnDOT. 2406 Plowing & Material Application Shoulder to shoulder snow removal operation, winging back, snow blowing drifts, and the application of de-icing chemicals using mobile equipment. Includes changing cutting edges during event and related traffic control. 3005 Radio - Mobile Equipment Use for the repair and preventative maintenance of all equipment associated with wireless two-way radio communications systems (includes mobile radios, portable radios, base stations, console workstations, recorders, etc.). Non-MnDOT equipment - Must use Project number assigned to requesting agency (State Patrol, DNR, BCA, Fire Marshall). See OSRC Project Code list. 3027 Radio Programming Creating or modifying radio frequency programs and programming mobile and portable radios. Does not include mobile radios used as fixed base radios as part of the Inter-OP System (Use 3009). 3002 Radio/Electronic Infrastructure Use for the repair and preventative maintenance of all equipment associated with wireless two-way radio communications systems (includes mobile radios, portable radios, base stations, console workstations, recorders, etc.). Non-MnDOT equipment - Must use Project number assigned to requesting agency; Department of Public Safety (DPS) includes State Patrol (SP) Bureau of Criminal Apprehension (BCA), Fire Marshall); does not include Department of Natural Resources (DNR). See OSRC Project 3007 Radio/Electronic System Engineering Use for design of microwave, radio and miscellaneous electronic systems. 3009 Radio/Electronic System Upgrade & Installation Use for the installation and other services needed to provide major system upgrades or improvements to wireless or electronic systems. Use for all work performed to correct or repair deficiencies found in a new installation. 1716 Record Sampling Used by Materials and Research Section and district materials staff to verify inspector" sampling and testing procedures and checking inspectors' equipment during project construction as required by FHWA. Use when performing field tests on split sample. Page 3 of 5 Source Code Title Description 2222 Sign/Delineation/Marker Repair Replacing, repairing, and washing signs (including temporary stop signs). Includes re-sequencing intersection signing and repair/replace overhead and extrude signs mounted on I-beams. Includes related cable locates and traffic control. 1182 Soils/Foundation Field/Laboratory Tests All laboratory testing necessary to provide geotechnical information to complete roadway soils recommendations and approvals for use in the development of Final Design Plans and Special Provisions. Lab work includes R-value, resilient modulus, soil classification, gradation, proctor testing, unconfined compression, consolidation, direct simple shear, direct sheer, permeability and triaxial tests. 1879 State Furnished Materials Use to record labor hours, equipment usage, and material costs to supply state furnished materials to a state road construction project with federal participation. 1738 State Project - Specific Materials Inspection Performing material inspection and engineering for materials designated for a specific construction project (SP). Generally applies to inspection of such things as structural steel, prestressed concrete items, and most precast concrete items and related technical services in the field and offices when related to a particular SP. Use for SP specific tasks related to performing the review of shop drawings furnished by suppliers or fabricators and contractor working drawings or calculations, and for tasks related to structural metals inspection (materials surveys, physical and chemical laboratory testing, material inspection and engineering and technical services in the field and offices). 1434 Structural Metals Inspection-Non DOT Reviewing shop drawings furnished by suppliers, fabricators, and contractors (working drawing or calculations), and for tasks related to structural metals inspection (materials surveys, physical and chemical laboratory testing, material inspection and engineering, and technical services in the field and offices) for local agency projects. 2629 Supplies & Small Tools Shop tools, small equipment, and supplies that cannot be directly charged to a mobile equipment unit. 0152 Support Services Work that supports general office management, system management such as entering data into SWIFT, PPMS, PUMA and other MnDOT systems, attending staff meetings and other indirect support activities. 1312 Tech Assist-Outside MnDOT Use when providing technical assistance to an organization external to MnDOT. 3025 Tower/Building Maintenance Use for all tasks related to the maintenance of a tower building or site. Includes towers, buildings, generators, LP system, fencing, landscaping, grounding, ice bridge, cable management, climbing ladders, card key systems, and HVAC. 1876 Traffic Counting Use to record labor, equipment usage, and material costs for activities related to traffic counts made for statewide traffic monitoring or traffic operations. Includes all activities related to traffic counting, such as taking requests, assigning priorities, collecting field data, processing data, and developing new techniques for collection. 1501 Traffic Management System (TMS) Used by traffic operations staff for all tasks that support the RTMC's operations center (or TOCC) providing traveler information, managing incidents and monitoring the FMS. Includes dynamic message sign maintenance, ramp meter maintenance, camera maintenance, and loop detection activities. Includes maintenance activities related to any ITS or TMS device such as RTMC cables, monitor wall, switchers, routers, or modems. Use to record all costs for maintenance activities related to traffic management fiber optics. Use for tasks related to maintaining traffic operations software including minor software enhancements and fixes. Use when providing traffic operations technical assistance external to MnDOT. Use with Page 4 of 5 Source Code Title Description 1513 Traffic Management System (TMS) Integration For tasks associated with the incorporation of new and existing TMS devices (cameras, loops, DMS, and other ITS devices) into existing infrastructure to ensure proper operation. Use with the Construction/Program Delivery Appropriation. 1500 Traffic Mgt System Maintenance Used by staff to maintain various Intelligent Transportation System (ITS) devices such as dynamic message signs, ramp meters, cameras, detection, cables, RICWS, video wall monitors, switches, routers or modems. Used to record all costs for maintenance activities related to traffic management fiber optics. Not to be used for Lighting or Traffic Signal maintenance. 1721 Traffic Sign Work Orders Use for work involved in preparing work orders for traffic signs. Use only with Maintenance Operations appropriation (T790081). 2863 Traffic Signal Inspection Work related to cyclical structural and electrical inspection and preventive maintenance checks of traffic signal systems/structures. Includes labor, equipment, materials, and traffic control. 1870 Traffic Signal Maintenance Work related to the structural repair and replacement of traffic signal system structures and all electrical maintenance for traffic signal systems including electrical power, labor, equipment materials, GSOC locates, traffic control and responses to public inquiries. 2834 Waterway Maintenance All tasks related to waterway maintenance for deck bridges. Includes debris removal, waterway cleanup, channel repair, and channel protection repair that is not part of slope protection. Includes related traffic control. Page 5 of 5