2014.02.03 Work Session Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696
CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CRYSTAL
Posted: January 30, 2014
CRYSTAL CITY COUNCIL
WORK SESSION AGENDA
Monday, February 3, 2014
To immediately follow the Regular City Council Meeting
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the work session of the Crystal City Council was held at p.m. on Monday,
February 3, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota.
I. Attendance
Council members Staff
Peak Norris
Selton Therres
Adams Mathisen
Budziszewski Hansen
Deshler Revering
Hoffmann Serres
Libby
II. Agenda
The purpose of the work session is to discuss the following agenda items:
■ Council Chambers update
■ Crystal's share of the emergency water supply system
■ DeCola Ponds update
■ Funds for Community Mediation Services
III. Adjournment
The work session adjourned at p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Memorandum
CITY of
CRYSTAL
DATE: January 29, 2014
TO: Mayor and Council
FROM: Charlie Hansen, Finance Director
Nancy Johnson, IT Manager
Tom Mathisen, Public Works Director/City Engineer
Kim Therres, Assistant City Manager/Human Resources Manager
SUBJECT: Council Chambers
The audio-visual/cable broadcast system equipment and lighting in the Council
Chambers are scheduled to be replaced and updated this year. Most of the currect
equipment was installed in the early 1990's when City Hall was remodeled.
There is $200,000 in the 2014 Permanent Improvement Revolving (PIR) fund for this
project. A staff committee is working with Tim Gaffron from Northwest Community
Television along with consultants from Emanuelson-Podas Consulting Engineers on the
design and equipment for the chambers.
Several upgrades and improvements have been identified, including changing out the
dais lighting, replacing the audio/speaker system and switching out the dais monitors.
In addition, the projector display may be replaced with large display monitors and the
Crestron system that controls the room lighting and display scources may be replaced.
The timeline for completion of the project is:
➢ January — February: Preparation of bid documents and advertising for bids
➢ March 17: Bid opening
➢ April 1: City approval of bidder
➢ June 18 — July 14: Installation of equipment
Depending on how the installation progresses, the July 15 City Council meeting may
need to be relocated or broadcasted in a different manner.
At the February 3 City Council work session, the committee and Tim Gaffron will be
available for questions. The committee is also interested in council feedback regarding
the changes and improvements to the chambers.
Memorandum
.Cffvw
nrsTn�
DATE: January 29, 2014
TO: Mayor and City Council
Anne Norris, City Manager
FROM: Charles Hansen, Finance Director
SUBJECT: Discuss Financing Options for JWC Emergency Water Supply
Background:
The Joint Water Commission (JWC) has committed to add wells as an emergency
water supply backup. Two options for financing Crystal's share of the project have
been discussed. One was to participate in bonds that Golden Valley was going to issue
to finance the project. The other is to pay Crystal's share from cash on hand in the
Water Fund. Golden Valley has decided not to issue bonds on behalf of the JWC.
Crystal could still issue debt on its own to pay for its share of the project.
Crystal will pay a share of the project costs based on the water used by Crystal
customers compared to the total water used by all JWC customers. This share
fluctuates from year to year since water usage changes over time. This recently has
been in the range of 27% to 27.5%. It has been as high as 30% in past years. A 30%,
30%, 40% split (with Crystal being 30%) was cited at the joint city council meeting. The
final split for this project has yet to be determined.
Financing the CIP using cash to pay Crystal's share up -front, Alternative #1
Crystal could use the Water Fund's cash on hand to pay its share (about $1,215,000) of
the project.
The cash on hand scenario is shown in the Alternative #1 budget. The JWC — Capital
line is $1,215,000 higher than the 2014 Adopted Budget to reflect paying up -front.
Impact on the cash & investments is substantial. Even with faster rate increases in
2016 through 2018, cash & investments fall to about zero at the end of 2018.
Financing the emergency wells using bonds or an internal loan, Alternative #2
The City could issue bonds or set up an internal loan from another city fund to finance
its share of the emergency wells. There would be interest expense with either bonds or
an internal loan. Bonds would also incur some issuance costs.
A possible debt structure for bonds is shown on Attachment A. I assumed a ten year
life for the bonds. This minimizes total interest expense but results in higher annual
debt service payments than were contemplated with the Golden Valley bonds. I
assumed an average 2.5% interest rate. This is probably high, but there will be no way
to know until bonds are sold.
A possible debt structure for an internal loan could look similar with the same
assumptions for interest expense and annual payments. Interest should be paid since
the fund making the loan will lose investment income on the money that is loaned to the
Water Fund.
In this scenario, Crystal's water rates can increase at the same pace over the next five
years as proposed in the 2014 Adopted Budget. However, cash and investments will
be about $132,000 at the end of 2018, compared to about $1,068,000 in the 2014
Adopted Budget.
Other Unanticipated Capital Projects
Crystal's infrastructure is aging. It is probable that unanticipated breakdowns will
happen, causing additional capital projects besides the ones currently identified. This
will put additional financial stress on the Water Fund no matter which financing
alternative is chosen for the emergency wells.
Conclusion:
Each of the alternatives has drawbacks. Selling bonds requires payment of substantial
interest expense. Paying cash up front requires rapid water rate increases to generate
cash to take the place of bond financing. Future water rate increases may well exceed
the rate increases shown in any of the alternatives due to unanticipated capital projects.
2014 Ado ted Budget
Alternative #1 Budget
Alternative #1 Budget
Rate
Increase
from prior
year
Estimated
Year-end
Cash
Balance
Rate Estimated
Increase Year-end
from prior Cash
year Balance
Rate Estimated
Increase Year-end
from prior Cash
year Balance
2014
5.15%
$2,306,030
5.15% $1,041,955
5.15% $2,256,955
2015
3.92%
$1,916,023
3.92% $700,486
3.92% $1,796,836
2016
0.00%
$1,923,890
3.77% $283,484
0.00% $1,142,761
2017
2.83%
$1,482,436
3.64% $53,619
2.83% $643,128
2018
0.92%
$1,068,192
6.140/o $-1,739
0.92%1 $132,080
Other Unanticipated Capital Projects
Crystal's infrastructure is aging. It is probable that unanticipated breakdowns will
happen, causing additional capital projects besides the ones currently identified. This
will put additional financial stress on the Water Fund no matter which financing
alternative is chosen for the emergency wells.
Conclusion:
Each of the alternatives has drawbacks. Selling bonds requires payment of substantial
interest expense. Paying cash up front requires rapid water rate increases to generate
cash to take the place of bond financing. Future water rate increases may well exceed
the rate increases shown in any of the alternatives due to unanticipated capital projects.
WATER UTILITY RATE STUDY
2014 Adopted Budget
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
REVENUES
Water usage charges
2,600,000
2,760,000
2,880,000
2,880,000
2,970,000
3,000,000
Fixed service charges
150,000
150,000
150,000
150,000
150,000
150,000
Penalties
57,000
60,000
60,000
60,000
60,000
60,000
Special Assessments
60,000
60,000
60,000
60,000
60,000
60,000
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
34,590
38,320
48,097
44,473
Miscellaneous
57,000
57,000
59,000
59,000
59,000
59,000
State testing fee billed
50,000
50,000
50,000
50,000
50,000
50,000
3,013,000
3,172,300
3,305,590
3,309,320
3,409,097
3,435,473
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
JWC - Capital
229,500
309,150
432,000
205,200
193,050
200,000
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
TOTAL EXPENSES
2,974,243
3,167,351
3,372,598
3,228,874
3,302,074
3,401,717
NET INCOME or -LOSS
38,757
4,949
-67,008
80,447
107,024
33,756
ENDING FUND BALANCE
7,494,8881
7,499,837
7,432,830
7,513,276
7,620,300
7,654,056
2,163,732
2,262,611
2,306,030
1,916,023
1,923,890
1,482,436
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
4,949
-67,008
80,447
107,024
33,756
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
Deduct Capital Outlay
123,554
145,0001
513,0001
267,579
748,478
658,000
2,262,611
2,306,030
1,916,023
1,923,890
1,482,436
1,068,192
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.50
$4.65
$4.70
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$4.90
$5.05
$5.10
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.30
$5.45
$5.50
Rate increase from prior year
2.11%1
5.15%
3.92%
0.00%
2.83%
0.92%
WATER UTILITY RATE STUDY
2014 Adopted Budget, Alternative #1
Pay Emergency Water Supply Share Up -front
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
REVENUES
Water usage charges
2,600,000
2,760,000
2,880,000
3,000,000
3,120,000
3,330,000
Fixed service charges
150,000
150,000
150,000
150,000
150,000
150,000
Penalties
57,000
60,000
60,000
60,000
60,000
60,000
Special Assessments
60,000
60,000
60,000
60,000
60,000
60,000
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
15,629
14,010
7,087
1,609
Miscellaneous
57,000
57,000
59,000
59,000
59,000
59,000
State testing fee billed
50,000
50,000
50,000
50,000
50,000
50,000
3,013,000
3,172,300
3,286,629
3,405,010
3,518,087
3,722,609
TOTAL REVENUES
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
JWC - Capital
229,500
1,573,225
364,500
725,760
90,450
128,250
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
TOTAL EXPENSES
2,974,243
4,431,426
3,305,098
3,749,434
3,199,474
3,329,967
NET INCOME or -LOSS
38,757
-1,259,126
-18,469
-344,424
318,613
392,642
ENDING FUND BALANCE
7,494,8881
6,235,76216,217,29315,872,8701
6,191,4831
6,584,125
2,163,732
2,262,611
1,041,955
700,486
283,484
53,619
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-1,259,126
-18,469
-344,424
318,613
392,642
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
Deduct Capital Outlay
123,5541
145,0001
513,0001
267,579
748,4781
658,000
2,262,6111
1,041,9551
700,4861
283,484
53,619
-1,739
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.70
$4.90
$5.25
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$5.10
$5.30
$5.65
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.50
$5.70
$6.05
Rate increase from prior year
2.11%,
5.15%
3.92%
3.77%
3.64%
6.14%
WATER UTILITY RATE STUDY
2014 Adopted Budget, Alternative #2
Crystal Issues $1,250,000 Bonded Debt
PROFIT & LOSS
2013
2014
2015
2016
2017
2018
REVENUES
Water usage charges
2,600,000
2,760,000
2,880,000
2,880,000
2,970,000
3,000,000
Fixed service charges
150,000
150,000
150,000
150,000
150,000
150,000
Penalties
57,000
60,000
60,000
60,000
60,000
60,000
Special Assessments
60,000
60,000
60,000
60,000
60,000
60,000
JWC reimbursement
12,000
12,000
12,000
12,000
12,000
12,000
Investment Income
27,000
23,300
33,854
35,937
28,569
19,294
Miscellaneous
57,000
57,000
59,000
59,000
59,000
59,000
State testing fee billed
50,000
50,000
50,000
50,000
50,000
50,000
Bond sales
1,215,000
TOTAL REVENUES
3,013,000
4,387,300
3,304,854
3,306,937
3,389,569
3,410,294
EXPENSES
Salaries & Wages
230,449
235,494
241,381
247,416
253,601
259,941
Fringe Benefits
81,183
89,084
93,538
98,215
103,126
108,282
JWC - Operations
1,908,730
2,013,304
2,069,677
2,127,627
2,187,201
2,248,443
JWC - Capital
229,500
1,573,225
364,500
725,760
90,450
128,250
JWC 2 cents/1,000 gal. fee
12,000
12,000
12,000
12,000
12,000
12,000
Professional/Contractual
94,568
97,755
100,688
103,708
106,820
110,024
Utilities
4,200
4,140
4,264
4,392
4,524
4,660
Repair & Maintenance
38,100
37,800
38,934
40,102
41,305
42,544
Supplies
50,500
50,500
52,015
53,575
55,183
56,838
Communications & Printing
7,600
3,500
3,605
3,713
3,825
3,939
Insurance & Training
16,265
12,703
13,084
13,477
13,881
14,297
Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
Admin. Service Charge
117,472
118,451
121,412
124,448
127,559
130,748
Debt Service Payments
136,875
139,000
141,250
143,375
2,974,243
4,431,426
3,441,973
3,888,434
3,340,724
3,473,342
TOTAL EXPENSES
NET INCOME or -LOSS
38,757
-44,126
-137,119
-581,497
48,845
-63,048
ENDING FUND BALANCE
7,494,8881
7,450,762
7,313,643
6,732,147
6,780,992
6,717,944
2,163,732
2,262,611
2,256,955
1,796,836
1,142,761
643,128
CASH FLOW
Cash & Investments, Beg. of Year
Net income
38,757
-44,126
-137,119
-581,497
48,845
-63,048
Add back Depreciation
183,676
183,470
190,000
195,000
200,000
210,000
Deduct Capital Outlay
123,5541
145,000
513,000
267,579
748,478
658,000
2,262,6111
2,256,955
1,796,836
1,142,761
643,128
132,080
Cash & Investments, End of Year
Retail Rate per 1,000 gallons, Tier 1
4.05
$4.30
$4.50
$4.50
$4.65
$4.70
Retail Rate per 1,000 gallons, Tier 2
4.45
$4.70
$4.90
$4.90
$5.05
$5.10
Retail Rate per 1,000 gallons, Tier 3
4.85
$5.10
$5.30
$5.30
$5.45
$5.50
Rate increase from prior year
2.11%,
5.15%
3.92%
0.00%
2.83%
0.92%
Emergency Wells Debt Structure
$1,250,000 Debt
Proceeds for construction $1,215,000
Bond issuance costs $35,000
Total bond issue $11250,000
Term: 10 years
Assume 2.5% interest rate
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Principal
0
90,000
110,000
115,000
120,000
120,000
125,000
135,000
140,000
145,000
150,000
Interest
0
46,875
29,000
26,250
23,375
20,375
17,375
14,250
10,875
7,375
3,750
Total
Debt
Service
0
136,875
139,000
141,250
143,375
140,375
142,375
149,250
150,875
152,375
153,750
Total 1,250,000 199,500 1,449,500
Attachment A
Balance
1,250,000
1,160, 000
1,050,000
935,000
815,000
695,000
570,000
435,000
295,000
150,000
0
Memorandum
CITY of
CRYSTAL
DATE: January 29, 2014
TO: Mayor and City Council
f) %_�
11
FROM: Anne Norris, City Manager � "
Tom Mathisen, Public Works Director
SUBJECT: Study Regarding DeCola Ponds/Winnetka Avenue and Medicine Lake
Road Flooding
There are flooding issues in the DeCola Ponds and Winnetka Avenue/Medicine Lake
Road area in Golden Valley and New Hope. Several years ago Golden Valley hired
Barr Engineering to complete a study of possible engineering/public works solutions to
reduce or temper flooding in that area. The study report contained several public works
solutions which are cost -prohibitive and so, not realistic. Further discussions between
Golden Valley and Barr Engineering led to the conclusion the flooding issues needed to
be approached as a land use issue which would involve working with neighbors Crystal
and New Hope.
Barr Engineering is prepared to do a study of the land use issues, the cost of which
would be shared among the three cities (Crystal, Golden Valley and New Hope).
Since Crystal is at the proverbial top of the hill, we do contribute water to this area. In
the mid -1990's when the Crystal storm sewer work was done as part of those street
reconstruction projects, the idea was primarily to get storm water off roads and
driveways as quickly as possible. This doesn't necessarily address managing large
amounts of storm water that go to Golden Valley (or anywhere else) with such tools as
retention ponds. The only retention pond that Crystal built in this area as is the small
ponding area that was created in Yunkers Park.
The proposed study would evaluate:
- Reducing impervious surfaces;
- Options for absorbing more water before it gets to Medicine Lake Road and
DeCola Ponds area;
- Long term land uses;
- More green space;
- Reduced road widths and parking areas; and
- Acquiring properties that may currently be impacted by flooding.
Based on discussion at a work session last May, Crystal sent a letter to Golden Valley
stating concerns and offering to pay $11,000 towards the cost of the study. The cities
of Golden Valley and New Hope requested the Bassett Creek Watershed Commission
to initiate mediation to try to resolve this matter. A mediation committee was created
and two meetings were held to discuss Crystal's concerns as well as the positions of
Golden Valley and New Hope. Members of the negotiating committee met with the
Crystal City Council on October 15 to hear concerns of the Crystal Council firsthand.
In November, the Mediation Committee recommended to Bassett Creek Watershed
that:
- The cost share formula for participation in the study should mirror the cost
share formula used for assessing annual watershed costs;
- Include language in the agreement for the study that participation in the study
does not set a precedent for cost sharing in any future studies or projects that
are identified in the study; and
- The contingency in the study proposal be eliminated and that any additional
costs beyond the original scope of study would need to be negotiated
between all 3 cities before those costs are incurred.
Attached is a revised Cooperative Project Agreement reflecting the recommendations
of the Mediation Committee.
The study costs have been updated and revised and the total cost of the study is
$110,400. Based on the cost share formula recommended by the Mediation
Committee, Crystal's share is $25,392. Below is the calculation of the three cities'
participation in the study.
city
Area in Square Feet
Percentage
Crystal
6,050,932
23%
Golden Valley
12,954,918
49%
New Hoe
7,342,403
28%
Totals
26,348,253
100%
City
Property Count
Tax Capacity
Percent Tax
Ca acit
Crystal
403
$787,326
23%
Golden Valle
392
$1,725,389
50%
New Hoe
392
$942,304
27%
Totals
1,187
$3,455,019
100%
Funds for Crystal's share of the study would be paid out of the Storm Sewer Utility.
Attach:
Combined
Crystal
23%
$25,392
Golden Valley
49.5%
$54,648
New Hoe
27.5%
$30,360
Totals
100%
$110,400
Funds for Crystal's share of the study would be paid out of the Storm Sewer Utility.
Attach:
Item 41.
BCWMC 11-20-13
Bassett Creek `r atershed Management Commission
DATE: November 12, 2013
TO: Bassett Creek Board of Commissioners
FROM: The BCWMC Dispute Resolution Committee (tinny Black, Jim de Lambert, Jacob Millner)
RE, Medicine Lake Road and DeCola Ponds - Recommendations regarding the dispute between the
cities of Golden Valley, New Hope and Crystal.
The following is a brief summary of events and recommendations prepared by the BCWMC Dispute
Resolution Committee (Committee) with regards to the Medicine Lake Road and DeCola Ponds flooding
issue.
Summary of Events
Section 12.1.1.3 (Dispute Resolution Process) of the Commission 2004 Water Management Plan (WMA)
contains language that allows cities to request the Commission's involvement in resolving disputes
between cities within the watershed. The cities of Golden Valley, New Hope and Crystal came to the
Commission and asked for assistance regarding the distribution of costs for a Phase 11 study evaluating
flooding issues In the Medicine Lake Road and DeCola Ponds area. Per the requirements in the 2004
WMP, the commission appointed three commissioners (the Committee) to hear the dispute and make
recommendations to the full Board of commissioners.
On August 14, 2013, the Committee met with the staff of all three cities' staff to discuss the areas of
disagreement and the preferred process. In addition to hearing the concerns from city staff, the
outcoMe of that meeting was 1) that a round table type discussion process would be implemented to
address the cities' concerns (as opposed to a hearing type process) and 2) the recommendations of the
Committee to address the issues would not be binding on the parties. A second meeting was held on
September 9, 2013 with city staff, and at this meeting it was decided that the Committee would meet
with the city of Crystal City Council, and with the councils of other cities, if desired, to discuss their
concerns.
The Committee met with the Crystal City Council on October 15, 2013 and identified Crystal's three
primary issues:
e The cost share formula for the financial participation of each city In the Phase II study Is unfair to
Crystal
o The City's concern that participation in the Phase II study would obligate it, or set a precedent,
for future cost sharing in any project(s) recommended In the Phase 11 study; and
e The high amount of contingency (25 percent) for the Phase II study.
4349980 BA295-1
Recommendations
The Committee met on October 28, 2013 to discuss the issues, the information presented to the
Committee and the concerns raised at the October 15, 2013 meeting. The following are the
recommendations of the Committee;
The committee. encourages the BCWMC member cities to develop their own cooperative agreements
for jointly conducting studies and projects. The following recommendations are intended to address
this specific dispute between the cities of Golden Valley, New Hope and Crystal.
The cost share formula for the Phase II study should mirror the cost share formula used by the
Commission to assess annual BCWMC costs, but determined on the basis of the contributing
sub -watershed (50% based on the net tax capacity of all a member city's properties within the
boundaries of the contributing sub -watershed and 50% based on the total area of a member city
within the boundaries of the contributing sub -watershed);
2. Include language in the agreement for the Phase II study stating clearly that participation in the
Phase 11 study does not set a precedent for cost sharing or obligate any city to participate in
future studies or projects Identified in the Phase If recommendations; and,
3. Remove the 25 percent contingency from the proposal for the study and include language that
any additional costs, associated with Items outside of the initial scope of work, would need to be
negotiated between the three cities before the costs could be incurred.
Respectfully Submitted,
AeT
F
rn de Lambert, Chair
BCWMC Dispute Resolution Committee
434F99M BA295-1
COOPERATIVE PROJECT AGREEMENT
FOR
PHASE 2 DeCOLA PONDS AND MEDICINE LAKE ROAD AREA
FLOOD MITIGATION STUDY
This AGREEMENT is made this day of , 2014 by and between
the CITY OF CRYSTAL, a Minnesota municipal corporation ("Crystal"), the CITY OF
GOLDEN VALLEY, a Minnesota municipal corporation ("Golden Valley"), and the CITY
OF NEW HOPE, a Minnesota municipal corporation ("New Hope") (collectively
hereinafter, "the Cities").
RECITALS
WHEREAS, Minnesota statute § 471.59, et. seq., authorizes cities to enter into
cooperative project agreements; and
WHEREAS, The Cities each contribute storm water runoff to the following areas:
1. DeCola Ponds, located south of Medicine Lake Road, east of Winnetka
Avenue, and north of Duluth Street ("DeCola Ponds Area"); and
2. Medicine Lake Road, located in the Cities of Golden Valley and New
Hope, between Winnetka Avenue North and Rhode Island Avenue North
("Medicine Lake Road Area"); and
WHEREAS, Crystal and New Hope contribute storm water runoff to Terra Linda
Drive and Rosalyn Court, located in New Hope in the northeast quadrant of Medicine
Lake Road and Winnetka Avenue North ("Terra Linda Area"); and
WHEREAS, the DeCola Ponds Area, the Medicine Lake Road Area, Terra Linda
Drive Area are all prone to significant flooding during heavy rainfall events; with a
history of property damage resulting from this flooding; and
WHEREAS, the City of New Hope completed a Report for Terra Linda Drive,
Rosalyn Court and Medicine Lake Road — Local Flood Improvement Project, dated
July 2006 and revised in November 2006, to investigate flood mitigation measures. New
Hope has since implemented measures from this report to begin addressing flooding
issues in these areas; and
WHEREAS, Golden Valley has completed the DeCola Ponds Area Flood
Mitigation Study, prepared by Barr Engineering Company and dated April 2012
("Phase 1 Study") to investigate the cause of the flooding in these areas that includes a
recommendation to further study flood mitigation measures within the contributing
watershed to the flood -prone areas to reduce flood -related property damage; and
WHEREAS, the Cities desire to work cooperatively to determine the most
cost-effective measures to minimize flood damages.
NOW, THEREFORE, in consideration of the mutual covenants herein, and
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, Crystal, Golden Valley, and New Hope hereby agree as follows:
1. Golden Valley will be the lead City, including contract administration and
coordination among the Cities, for the preparation of the Phase 2 DeCola Ponds and
Medicine Lake Road Area Flood Mitigation Study ("Phase 2 Study").
2. Golden Valley has obtained a proposal for professional engineering services to
perform the Phase 2 Study from Barr Engineering Company dated
December 19, 2013. A copy of the Phase 2 Study proposal is attached to this
agreement as Exhibit 1.
3. The not to exceed cost to perform the Phase 2 Study is $110,400.
a. The Cities agree to prorate the costs of the Phase 2 Study with 50% of the
cost prorated based upon the net tax capacity of properties within the
contributing watershed and 50% based upon the total area within each city in
the contributing watershed. Cost participation is calculated as follows:
City
Area in Square Feet
Percentage
Crystal
6,050,932
23%
Golden Valley
12,954,918
49%
New Hope
7,342,403
28%
Totals
26,348,253
100%
City
Property Count
Tax Capacit
Percent Tax
Capacity
Crystal
403
$787,326
23%
Golden Valle
392
$1,725,389
50%
New Hope
392
$942,304
27%
Totals
1,187
$3,455,019
100%
b. The cities agree that any additional costs for work deemed necessary not
included in December 19, 2013 Barr proposal will be prorated among the
cities based upon a negotiated split prior to commencement of the extra work.
Combined
Crystal
23%
$25,392
Golden Valley
49.5%
$54,648
New Hope
27.5%
$30,360
Totals
100%
$110,400
b. The cities agree that any additional costs for work deemed necessary not
included in December 19, 2013 Barr proposal will be prorated among the
cities based upon a negotiated split prior to commencement of the extra work.
c. Participation in this study by the cities does not set a precedent for cost
participation for any capital improvement projects deemed feasible for flood
mitigation as part of the study. Cost participation for these improvements will
be determined on a project -specific basis prior to implementation of the
projects.
4. Payment. Partial payments will be made by the City of Golden Valley to Barr
Engineering Company on a monthly basis for work completed. The Cities of Crystal
and New Hope shall, within 30 days of receipt of invoice, submit partial payment to
the City of Golden Valley in the amount so invoiced.
5. Authorized Agents. The City of Crystal's Authorized Agent for the purpose of
administration of this agreement is Tom Mathisen, City Engineer/Director of Public
Works, or his successor or assign. The Authorized Agent's current address and
telephone number is: 4141 Douglas Drive, Crystal, MN, 55422; 763.531.1160.
The City of Golden Valley's Authorized Agent for the purpose of administration of
this agreement is Jeannine Clancy, Director of Public Works, or her successor or
assign. Her current address and telephone number is: 7800 Golden Valley Road,
Golden Valley, MN, 55427; 763.593.8035.
The City of New Hope's Authorized Agent for the purpose of administration of this
agreement is Bob Paschke, Director of Public Works, or his successor or assign. His
current address and telephone number is: 4401 Xylon Avenue North, New Hope,
MN, 55428; 763.592.6766.
6. Successor and Assiqns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, provided,
however, that neither Crystal, Golden Valley, nor New Hope shall have the right to
assign its rights, obligations, and interests in or under this Agreement to any other
party without the prior written consent of the other parties hereto.
7. Amendment, Modification or Waiver. No amendment, modification, or waiver of any
condition, provision, or term of this Agreement shall be valid or of any effect unless
made in writing and signed by the party or parties to be bound, or its duly authorized
representative(s). Any waiver by a party shall be effective only with respect to the
subject matter thereof and the particular occurrence described therein, and shall not
affect the rights of any other party with respect to any similar or dissimilar
occurrences in the future.
8. Saving Provision. If any provision of this Agreement shall be found invalid or
unenforceable with respect to any entity or in any jurisdiction, the remaining
provisions of this Agreement shall not be affected thereby, and such provisions
found to be unlawful or unenforceable shall not be affected as to their enforcement
or lawfulness as to any other entity or in any other jurisdiction, and to such extent the
terms and provisions of this Agreement are intended to be severable.
9. Notices. Any notice given under this Agreement shall be deemed given on the first
business day following the date the same is deposited in the United States Mail
(registered or certified) postage prepaid, addressed as follows:
If to Crystal: City Engineer/Director of Public Works
City of Crystal
4141 Douglas Drive
Crystal, MN 55422
If to Golden Valley: Director of Public Works
City of Golden Valley
7800 Golden Valley Road
Golden Valley, MN 55427
If to New Hope Director of Public Works
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
10. Termination. This Agreement shall remain in effect until the earlier of (a) termination
by mutual consent of the Cities, or (b) 60 days after completion of the Phase 2 Study
as demonstrated by final payment by Golden Valley to Barr Engineering Company.
IN WITNESS WHEREOF, Crystal, Golden Valley, and New Hope have entered
into this Agreement as of the date and year first above written.
CITY OF GOLDEN VALLEY
in
IN
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
Shepard M. Harris, Mayor
Thomas D. Burt, City Manager
The foregoing Cooperative Project Agreement was acknowledged before me this
day of , 2014 by Shepard M. Harris and Thomas D. Burt,
respectively the Mayor and City Manager of the City of Golden Valley a municipal
corporation, on behalf of the City.
Notary Public
CITY OF CRYSTAL
By:
It's Mayor
By:
It's City Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing Cooperative Project Agreement was acknowledged before me this
day of , 2014 by , and
, respectively the Mayor and City Manager of the City of
Crystal, a municipal corporation, on behalf of the City.
Notary Public
STATE OF MINNESOTA
COUNTY OF HENNEPIN
The foregoing
day of
CITY OF NEW HOPE
By:
It's Mayor
By:
It's City Manager
ss.
Cooperative Project Agreement was acknowledged before me this
2014 by , and
respectively the Mayor and City Manager of the City of New
Hope, a municipal corporation, on behalf of the City.
Notary Public
Memorandum
CITY of
CRYSTAL
DATE: January 29, 2014
TO: Mayor and City Council
'�A� �
FROM: Anne Norris, City Manager ;,LC✓`""J
SUBJECT: Request for Funding Community Mediation Services
Several years ago, the Council adopted Resolution #2008-56, a policy regarding use of
charitable gambling proceeds. The policy outlines the type of services or organizations
that may receive funds from charitable gambling proceeds and is based on language in
Minnesota Statutes, Section 349.12, Subd. 25. This allowed the Council to provide funds
to local food shelves serving Crystal residents and Community Mediation Services. In
2009, 2010, and 2011, the Council approved funding of $1,000, and in 2012, $1,100, to
Community Mediation Services (CMS).
Recently I received the attached invoice (dated April 2013) from CMS requesting $2,000 in
2013. The 2013 caseload included 27 cases involving 46 residents of Crystal. In addition
to mediation services, CMS provides training to Crystal apartment managers and property
owners through Crime Free Housing. CMS also serves as a resource to the Robbinsdale
School District and Hennepin County's Juvenile Advisory Council.
Other cities supporting Community Mediation Services include:
Brooklyn Center
Brooklyn Park
Corcoran
Golden Valley
Hopkins
Maple Grove
Minnetonka
Mound
New Hope
Plymouth
Robbinsdale
St. Louis Park
Community Mediation Services, Inc., is a 501(c)(3) organization and as such, is qualified
to receive charitable gambling proceeds so the Council could use some of its lawful
gambling 10% fund in City Initiative Fund for this request. There are funds in the City
Initiatives Fund for this request (see attached fund balance as of December 31).
The Council should discuss whether to continue to fund Community Mediation Services
and if so, in what amount, from the City Initiatives Fund.
Attach:
Community Mediation & Restorative Services
9220 Bass Lake Road, Ste 270
New Hope MN 55428
BILL TO:
Crystal
Invoice
DATE INVOICE #
04/08/13 408
P.O. NUMBER
TERMS
PROJECT
QUANTITY
DESCRIPTION
RATE
AMOUNT
Mediation Services
2,000.00
2,000.00
TOTAL $2,000.00
C:\Users\anorris\HppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\14J4XDUB\[4th Qtr 2013.x1s]1-17-14
Run Date: 01/21/14
City of Crystal
City Initiatives Fund (Fund 240)
YTD Summary As Of December 31, 2013
All expenses are initially coded to 0018.6883 - the Neighborhood Outreach Office line item in the Police Dept. (General Fund).
Donations will be coded to BU 3724 - the Neighborhood Outreach Office line item in the City Initiatives Fund . At the end of
each quarter, a review of BU 3724 will be made. If donations were received, any expenses incurred will be reclassified from
the Police Dept. to the City Initiatives Fund to bring the Neighborhood Outreach office line item to zero. This keeps the
net cost of operating the Neighborhood Outreach Office recorded in the Police Dept.
Tax levy dollars may be allocated to the DARE program from the General Fund, up to the amount budgeted for the year
(if any). Such allocation would be made at the end of July and December, to coincide with receipt of tax settlements from
Hennepin County. If donations are sufficient to cover expenses, no allocation will be made.
JDE
Balance
Disburse- Interfund
Balance
BU
Description
01/01/13
Receipts
ments Transfers
12/31/13
3707
Admin - Airport Open House
7,681.81
3,850.00
4,366.47
7,165.34
3704
Admin - "Beyond the Yellow Ribbon" Prog
0.00
3,308.00
3,308.00
0.00
3709
Admin - Lawful Gambling 10% "Fund"
3,794.65
1,150.00
3,000.00
1,944.65
3719
Police - Canine Unit
25,356.93
4,535.00
18,100.32
11,791.61
3721
Police - Citizen On Patrol Program
603.00
603.00
3722
Police - Chaplain's Fund
362.60
100.00
462.60
3724
Police - Neighborhood Outreach Office
0.00
0.00 "
3726
Police - DARE
(0.00)
2,731.04
2,731.04
(0.00)
3729
Police - Explorer's Program
3,597.85
4,916.64
5,478.45
3,036.04
3738
Police - Reserve
2,137.41
500.00
2,637.41
3750
Parks - In General
3,924.72
1,000.00
1,047.38
3,877.34
3753
Parks - Becker Park Rewards
659.04
659.04
3770
Recreation - In General
7,217.16
2,800.00
659.13
9,358.03
3773
Recreation - Activity Assistance
5,253.16
3,472.00
3,573.20
5,151.96
3776
Recreation - Becker Arts & Ent.
6,611.38
500.00
6,111.38
3782
Recreation - Safety Camp
2,139.38
578.95
1,560.43
0240
Unencumbered
4,689.95
4,689.95
74,029.04
59,048.78
28,362.68
43,342.94 0.00
All expenses are initially coded to 0018.6883 - the Neighborhood Outreach Office line item in the Police Dept. (General Fund).
Donations will be coded to BU 3724 - the Neighborhood Outreach Office line item in the City Initiatives Fund . At the end of
each quarter, a review of BU 3724 will be made. If donations were received, any expenses incurred will be reclassified from
the Police Dept. to the City Initiatives Fund to bring the Neighborhood Outreach office line item to zero. This keeps the
net cost of operating the Neighborhood Outreach Office recorded in the Police Dept.
Tax levy dollars may be allocated to the DARE program from the General Fund, up to the amount budgeted for the year
(if any). Such allocation would be made at the end of July and December, to coincide with receipt of tax settlements from
Hennepin County. If donations are sufficient to cover expenses, no allocation will be made.
CITY OF CRYSTAL
RESOLUTION #2008- 56
POLICY REGARDING CHARITABLE GAMBLING PROCEEDS
WHEREAS, the City of Crystal receives a 10% fee from organizations conducting
charitable gambling within the city; and
WHEREAS, undesignated charitable gambling fees are deposited in the City
Initiatives Fund; and
WHEREAS, charitable gambling fees may be used for lawful city purposes as
defined in Minnesota Statutes, Section 349.12, Subd. 25; and
WHEREAS, the City Council determines how charitable gambling fees are spent,
based on State law and this policy.
NOW, THEREFORE, BE IT RESOLVED by the Crystal City Council as follows:
Charitable gambling fees may be used towards services provided to area residents as
long as such services are permitted by the following lawful purposes:
1. Relieving effects of poverty or disability;
2. Festival organizations (501(c)(3) or 501(c)(4) including the Crystal Frolics;
3. Scholarship funds;
4. Activities by an organization that recognize military service to the country,
state or community;
5. Activities and facilities for youth;
6. Expenditures for police, fire and other emergency or public safety related
services or equipment;
7. Nutritional programs, food shelves and congregate dining programs primarily
for persons age 62 or older or disabled;
8. Community arts organizations;
9. Humanitarian service — recognizing volunteerism or philanthropy; or
10. Other lawful purposes designated by the City Council or state statutes.
Approved this 17 day of June , 2008.
ATTEST:
Janet LAvis, City Clerk