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HomeMy WebLinkAbout01-16-18-WSAGENDA ITEMS Update On Legislative Initiatives State Representative Randy Jessup MEMO.PDF Utility Rate Study Ehlers MEMO.PDF ATTACHMENT A.PDF City Attorney Attendance At Council Meetings Dave Perrault, City Administrator MEMO.PDF WSB Contract - Engineering Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF Fee Based System (Fire, Police, Ambulance) Joel Jamnik, City Attorney MEMO.PDF ATTACHMENT A.PDF Personnel Discussion –Finance Director Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF Restructuring Departments Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF Hiring And Termination Authority Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF Highway 96/Lexington Avenue Gateway Sign Matthew Bachler, City Planner Sue Polka, Public Works Director/City Engineer MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF Communications Work Plan Dawn Skelly, Communications Coordinator MEMO.PDF Local Union No. 49 Labor Agreement (Closed Per M.S. 13D.03, Subd. 1(B) And 179A.01 To 179A.25) Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF COUNCIL/STAFF COMMENTS ADJOURN Mayor: David Grant Councilmembers: Brenda Holden Fran Holmes Dave McClung Steve Scott      City Council Work Session (Open) with Closed Session to Follow Agenda January 16, 2018 5:00 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651 -792 -7800 Website : www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play. CALL TO ORDER 1. 1.A. Documents: 1.B. Documents: 1.C. Documents: 1.D. Documents: 1.E. Documents: 1.F. Documents: 1.G. Documents: 1.H. Documents: 1.I. Documents: 1.J. Documents: 1.K. Documents: 2. AGENDA ITEMSUpdate On Legislative InitiativesState Representative Randy Jessup MEMO.PDFUtility Rate StudyEhlers MEMO.PDFATTACHMENT A.PDFCity Attorney Attendance At Council MeetingsDave Perrault, City Administrator MEMO.PDFWSB Contract - EngineeringDave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF Fee Based System (Fire, Police, Ambulance) Joel Jamnik, City Attorney MEMO.PDF ATTACHMENT A.PDF Personnel Discussion –Finance Director Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF Restructuring Departments Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF Hiring And Termination Authority Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF Highway 96/Lexington Avenue Gateway Sign Matthew Bachler, City Planner Sue Polka, Public Works Director/City Engineer MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF Communications Work Plan Dawn Skelly, Communications Coordinator MEMO.PDF Local Union No. 49 Labor Agreement (Closed Per M.S. 13D.03, Subd. 1(B) And 179A.01 To 179A.25) Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF COUNCIL/STAFF COMMENTS ADJOURN Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungSteve Scott     City Council Work Session (Open) with Closed Session to Follow Agenda January 16, 2018 5:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.1.A.Documents:1.B.Documents:1.C.Documents:1.D. Documents: 1.E. Documents: 1.F. Documents: 1.G. Documents: 1.H. Documents: 1.I. Documents: 1.J. Documents: 1.K. Documents: 2. AGENDA ITEMSUpdate On Legislative InitiativesState Representative Randy Jessup MEMO.PDFUtility Rate StudyEhlers MEMO.PDFATTACHMENT A.PDFCity Attorney Attendance At Council MeetingsDave Perrault, City Administrator MEMO.PDFWSB Contract - EngineeringDave Perrault, City Administrator MEMO.PDFATTACHMENT A.PDFFee Based System (Fire, Police, Ambulance)Joel Jamnik, City Attorney MEMO.PDFATTACHMENT A.PDFPersonnel Discussion –Finance Director Dave Perrault, City Administrator MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFRestructuring DepartmentsDave Perrault, City Administrator MEMO.PDFATTACHMENT A.PDFHiring And Termination AuthorityDave Perrault, City Administrator MEMO.PDFATTACHMENT A.PDFHighway 96/Lexington Avenue Gateway SignMatthew Bachler, City PlannerSue Polka, Public Works Director/City Engineer MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFATTACHMENT C.PDFCommunications Work PlanDawn Skelly, Communications Coordinator MEMO.PDF Local Union No. 49 Labor Agreement (Closed Per M.S. 13D.03, Subd. 1(B) And 179A.01 To 179A.25) Dave Perrault, City Administrator MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF COUNCIL/STAFF COMMENTS ADJOURN Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungSteve Scott     City Council Work Session (Open) with Closed Session to Follow Agenda January 16, 2018 5:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.1.A.Documents:1.B.Documents:1.C.Documents:1.D.Documents:1.E.Documents:1.F.Documents:1.G.Documents:1.H.Documents:1.I.Documents:1.J. Documents: 1.K. Documents: 2. DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Representative Jessup Update Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider State Representative Randy Jessup will be present at the meeting to discuss the upcoming legislative session, no Council action will be necessary. Background N/A Attachment N/A AGENDA ITEMS –1A MEMORANDUM DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Utility Rate Study Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The Council should provide further direction on the utility rate study presentation provided by Ehler’s. Background A rate study has been conducted by Ehler’s to assess the health of our utility funds, and to project necessary rate increases for future years. A presentation will be given by Ehler’s to the City Council. Attachment Attachment A: Ehler’s Presentation AGENDA ITEMS –1B MEMORANDUM City of Arden Hills Utility Rate Study Recommendations Stacie Kvilvang & Jeanne Vogt January 16, 2018 1 Utility Funds •They are Enterprise Funds 1.Should pay for Capital Outlays Operations Replacement Reserves Debt 2.Should be “flush” with cash 3.Have a minimum of: 6 months of operations Following year’s bond/debt payments, if any Funding for capital equipment Flexibility to accommodate unforeseen repairs 2 Purpose of Study 1.Review rate structure and usage rates for Water, Sewer and Storm Water –Prepare base model for existing operations and capital requirements –Once base model is approved, complete impact analysis of TCAAP •Water Fund & Sewer Fund •Biggest issue is paying for water tower that is needed today –Review rates annually to determine if they need to be adjusted based upon actual water usage and how TCAAP builds out 2.Eliminate standby fee and incorporate into rates or other charge -Line item on each bill and used to pay for maintenance costs associated with fire protection (i.e. hydrants, sprinkler systems, etc.) 3.Eliminate undeveloped surface water management fee –Confusing and cumbersome to calculate, without generating a lot of revenue (approximately $5,200/year) 3 •Goals when designing a water rate structure –Evaluate who is using the system and when •Are land uses billed similarly •Are certain users paying more or less than they should –Fixed vs. variable costs of the system –“Revenue neutral” •All options generate same amount of revenue •Revenue needed to sustain enterprise funds into the future –Conservation rates –Ease of administration –Understood by rate payers Goals Findings 1.Water Fund has a sufficient cash balance, but needs some work •Capital projects for existing infrastructure 2.Sewer Fund has insufficient cash balance, needs increases •Interfund loan from PIR Fund •Capital projects for existing infrastructure 3.Storm Water Fund is sufficient 4.Should eliminate undeveloped surface water management fee 5.Can eliminate standby fee and incorporate into meter charge (flat fee) 5 Fixed Costs •What are they? –Staff –Equipment/vehicles –Supplies –Cost to send out the bills –Meters for resale and meter repair/maintenance (water fund only) •Why important? –Need to make sure these costs are covered by base charges and not subject to usage of the system Water Fund -Wet Versus Dry Years •Revenue Stability: Ensure meter charges are high enough to provide stability during a “wet” year. Sources:Minnesota Department of Natural Resources City of Arden Hills 0 5 10 15 20 25 30 35 40 0 50 100 150 200 250 300 350 400 450 2007 2008 2009 2010 2011 2012 2013 2014 2015 In c h e s Mi l l i o n G a l l o n s Annual Rainfull Compared to Usage Total Water Delivered Precipitation •Quarterly Billing •Water use is billed as follows: –Meter charge –varies by meter size –Standby charge –varies by service line size –Usage Charges: •Fixed Costs –Existing Meter and Standby Charge $586,411/year –Actual Fixed Costs = $470,154/year Water Fund -How are we doing things now? Tiers 2017 Rates 0 –10,000 gallons $2.73/1,000 gallons 10,001 –35,000 gallons $3.52/1,000 gallons Over 35,000 gallons $6.22/1,000 gallons Residential Rate Tiers –No Change to Existing 9 - 50 100 150 200 250 1 , 0 0 0 2 , 0 0 0 3 , 0 0 0 4 , 0 0 0 5 , 0 0 0 6 , 0 0 0 7 , 0 0 0 8 , 0 0 0 9 , 0 0 0 1 0 , 0 0 0 1 1 , 0 0 0 1 2 , 0 0 0 1 3 , 0 0 0 1 4 , 0 0 0 1 5 , 0 0 0 1 6 , 0 0 0 1 7 , 0 0 0 1 8 , 0 0 0 1 9 , 0 0 0 2 0 , 0 0 0 2 1 , 0 0 0 2 2 , 0 0 0 2 3 , 0 0 0 2 4 , 0 0 0 2 5 , 0 0 0 2 6 , 0 0 0 2 7 , 0 0 0 2 8 , 0 0 0 2 9 , 0 0 0 3 0 , 0 0 0 3 1 , 0 0 0 3 2 , 0 0 0 3 3 , 0 0 0 3 4 , 0 0 0 3 5 , 0 0 0 3 6 , 0 0 0 3 7 , 0 0 0 3 8 , 0 0 0 3 9 , 0 0 0 4 0 , 0 0 0 4 1 , 0 0 0 To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To Winter Quarter, 2017 Residential Water Use (in gallons) Approx.55% of customers use 10,000 gallons or less. Approx. 75% of customers use 13,000 gallons or less Median Usage is 9,300 gallons / Quarter Average Usage is 10,000 gallons / Quarter Residential Rate Tiers –No Change to Existing 10 - 20 40 60 80 100 120 140 160 1 , 0 0 0 2 , 0 0 0 3 , 0 0 0 4 , 0 0 0 5 , 0 0 0 6 , 0 0 0 7 , 0 0 0 8 , 0 0 0 9 , 0 0 0 1 0 , 0 0 0 1 1 , 0 0 0 1 2 , 0 0 0 1 3 , 0 0 0 1 4 , 0 0 0 1 5 , 0 0 0 1 6 , 0 0 0 1 7 , 0 0 0 1 8 , 0 0 0 1 9 , 0 0 0 2 0 , 0 0 0 2 1 , 0 0 0 2 2 , 0 0 0 2 3 , 0 0 0 2 4 , 0 0 0 2 5 , 0 0 0 2 6 , 0 0 0 2 7 , 0 0 0 2 8 , 0 0 0 2 9 , 0 0 0 3 0 , 0 0 0 3 1 , 0 0 0 3 2 , 0 0 0 3 3 , 0 0 0 3 4 , 0 0 0 3 5 , 0 0 0 3 6 , 0 0 0 3 7 , 0 0 0 3 8 , 0 0 0 3 9 , 0 0 0 4 0 , 0 0 0 4 1 , 0 0 0 4 2 , 0 0 0 4 3 , 0 0 0 4 4 , 0 0 0 4 5 , 0 0 0 To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To Summer Quarter, 2016 Residential Water Use (in gallons) 50%90%37% Median Usage is 12,500 gallons / Quarter Average Usage is 17,000 gallons / Quarter Commercial Tiers –No Change to Existing 11 - 2 4 6 8 10 12 14 16 18 5 , 0 0 0 1 0 , 0 0 0 1 5 , 0 0 0 2 0 , 0 0 0 2 5 , 0 0 0 3 0 , 0 0 0 3 5 , 0 0 0 4 0 , 0 0 0 4 5 , 0 0 0 5 0 , 0 0 0 5 5 , 0 0 0 6 0 , 0 0 0 6 5 , 0 0 0 7 0 , 0 0 0 7 5 , 0 0 0 8 0 , 0 0 0 8 5 , 0 0 0 9 0 , 0 0 0 9 5 , 0 0 0 1 0 0 , 0 0 0 1 0 5 , 0 0 0 1 1 0 , 0 0 0 1 1 5 , 0 0 0 1 2 0 , 0 0 0 1 2 5 , 0 0 0 1 3 0 , 0 0 0 1 3 5 , 0 0 0 1 4 0 , 0 0 0 1 4 5 , 0 0 0 1 5 0 , 0 0 0 1 5 5 , 0 0 0 1 6 0 , 0 0 0 1 6 5 , 0 0 0 1 7 0 , 0 0 0 1 7 5 , 0 0 0 1 8 0 , 0 0 0 1 8 5 , 0 0 0 1 9 0 , 0 0 0 1 9 5 , 0 0 0 2 0 0 , 0 0 0 2 0 5 , 0 0 0 2 1 0 , 0 0 0 2 1 5 , 0 0 0 2 2 0 , 0 0 0 2 2 5 , 0 0 0 To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To To Spring Quarter, 2017 Commercial Water Use (in gallons) 50%33%18% Median Usage is 84,000 gallons / Quarter Average Usage is 245,000 gallons / Quarter Summary of Who is using the water system and when Quarterly Consumption Winter Quarter Residential Summer Quarter Residential 10,000 gallons 55%of customers 37% of customers 13,000 gallons 75% of customers 50% of customers 35,000 gallons 90% of customers Quarterly Consumption Spring Quarter Commercial 10,000 gallons 18% of customers 35,000 gallons 33% of customers 85,000 gallons 50% of customers Key Findings –Water Utility •Water Rates 1.Existing tiers are appropriate 2.Lack of sufficient cash balances to pay for future capital needs and/or have adequate balance for unforeseen issues 3.Not every user has a meter charge •22 accounts are “sewer only” and only have a Standby Charge 4.Current usage rates •Meets Conservation standards per statute •Generates insufficient revenues •Take Away: 1.Current cash balances are inadequate to pay for needed system upgrades so need to issue debt in 2018 2.Current rate increases don’t allow for payment of debt or allow for adequate reserves in the future 13 Key Assumptions for Water Analysis •Utilized 1 year of data –½ of 2016 and ½ of 2017 •3% inflation on City’s operating expenses •2% increase on other revenues •Future Capital Improvements for existing infrastructure •Debt assumptions –10-Year Terms –Interest rate range of 3% -5% 14 Capital Projects –Water Fund 15 •Significant projects in 2018 •Water Fund does not have sufficient cash to pay for capital projects without external borrowing Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE & PROJECTS Water Tower Repair & Repainting 12-W-001 520,000 CR E2 Water Replacement/Old Hwy 10 Loop 17-W-001 855,000 Booster Station Repair/Upgrade (Roseville)18-W-001 400,000 154,000 County Road F Watermain Replacement 18-W-002 300,000 Future PMP 18-Str-005 400,000 400,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 751,000 Watermain Replacement 250,000 250,000 250,000 250,000 Total Existing Infrastructure & Projects 2,826,000 404,000 650,000 250,000 650,000 Actual CIP (2017 Dollars)2017 2,826,000 404,000 650,000 250,000 650,000 Percent Inflation 3%3%3%3%3% 2,910,780 428,604 710,273 281,377 753,528 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 3,000,000 0 1,200,000 0 1,100,000 15-Year Term 0 0 0 0 0 Impact on Water Fund -No Changes 16 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Changes to Water Fund •Issue debt for Capital Projects •Combine Meter Charges and Standby Charges –Removes appearance of duplicity –Continue to charge 22 Sewer Only accounts a Standby Charge •These accounts would not have a Meter Charge –New Meter Charges would generate sufficient revenues to cover 100% of Fixed Costs of the system. •No Changes to Existing Tiers –Rates would be adjusted to capture 100% of Variable Costs of the system •Rate Changes are “Revenue Neutral” •Minimal impact on average users 17 Impact on Water Fund –With Changes 18 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Residential Water Rates 19 2017 Rates per 1,000 gallons 2018 Rates per 1,000 gallons Tier 1 Tier 2 Tier 3 0 –10,000 gallons 10,001 –35,000 gallons Over 35,000 gallons $2.73 3.52 6.22 $3.11 4.01 7.09 Meter Charge ¾” Meter $24.36 $30.35 Standby Charge 1” Service Line $8.32 N/A* *Note: For 22 “Sewer Only” accounts, the Standby Charge would be $8.65 Proposed Commercial Water Rates 20 2017 Rates per 1,000 gallons 2018 Rates per 1,000 gallons Tier 1 Tier 2 Tier 3 0 –10,000 gallons 10,001 –35,000 gallons Over 35,000 gallons $2.73 3.52 6.22 $3.11 4.01 7.09 Meter Charge 1” Meter 1.5” Meter 2” Meter 3” Meter 4” Meter 6” Meter 8” Meter 10” Meter 12” Meter $58.84 124.46 200.51 436.45 654.26 1,089.82 2,196.99 3,122.56 4,429.34 $75.88 151.75 242.80 455.25 758.75 1,517.50 2,428.00 3,490.25 6,525.25 Standby Charge 1.25” Service Line 1.5” Service Line 2” Service Line 3” Service Line 4” Service Line 6” Service Line 8” Service Line 10” Service Line 12” Service Line $12.02 16.56 25.31 57.09 101.81 228.28 406.26 635.48 913.31 N/A N/A N/A N/A N/A N/A N/A N/A N/A Changes to Water Fund Charges Existing 2017 Rates Recommended 2018 Rates Meter Charges $380,707 $470,243 Standby Charges 205,703 761 Usage Charges 1,444,237 1,645,958 Total Revenues $2,030,647 $2,116,962 Pros: •Fixed Charges pay for fixed costs of the system •Eliminates majority of Standby Charges •Ease of administration •Easy to explain to rate payers Cons: •Any changes to rate structure will cause some shifts in burden of who pays •Quarterly Billing •Sanitary Sewer use is billed as follows: •Fixed Costs –Existing Base Charge generates $911,719/year •Only generates $110,300 if you exclude accounts that use less than 15,000 gallons –Actual Fixed Costs are $542,046/year Sewer Fund -How are we doing things now? Base Charge - Includes 15,000 gallons 92.61$ Mobile Homes 100.16 Consumption Charge - Residential 5.33 Consumption Charge - Commercial 5.77 Key Findings -Sewer •Future Projected Sewer Rate Increases 1.Need to repay interfund loan to PIR Fund and begin to build cash reserves 2.Significant capital projects over next 5-10 years 3.4% annual increases in sewer treatment charges expected over next 5 years •Take Away: 1.Existing users of less than 15,000 gallons/quarter are paying more than their fair share 2.Commercial and mobile homes are not contributing to fixed costs 3.Sanitary sewer treatment cost increases and existing interfund loan are driving future rate increases 4.Need to issue debt to pay for capital projects 23 Key Assumptions for Sewer Analysis •All CIP needs identified •3% inflation on City’s operating expenses •2% increase on other revenues •$53,900 increase in MCES fees between 2017 and 2018 •MCES and existing bonds: –4% increase in MCES fees beyond 2018 •Debt assumptions –10-Year Terms –Interest rate range of 3% -5% 24 Capital Projects –Sewer Fund •Sewer fund does not have sufficient cash to pay for projects without external borrowing 25 Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE PROJECTS Sewer Lining/Rehabilitation 09-Sew-002 200,000 400,000 400,000 Reconstruct Lift Station 11 10-Sew-003 Future PMP 18-Str-005 400,000 400,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 50,000 Lift Stations 125,000 125,000 Actual CIP (2017 Dollars)2017 375,000 525,000 400,000 400,000 400,000 Percent Inflation 3%3%3%3%3% Inflated Project Costs 386,250 556,973 437,091 450,204 463,710 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 450,000 0 1,100,000 0 900,000 15-Year Term 0 0 0 0 0 Impact on Sewer Fund -No Changes 26 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Changes to Sewer Fund •Issue debt for Capital Projects •Base Fee for all accounts –Remove 15,000 gallon minimum –Include commercial and manufactured home accounts –Sufficient to cover fixed costs of the system •Consumption Charge –Same rate for residential and commercial accounts •Flat Fee for Manufactured Homes –Calculated as above assuming 17,000 gallons/quarter •Rate Changes are “Revenue Neutral” •Minimal impact on average users 27 28 Impact on Sewer Fund -With Changes Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Sewer Rates 29 Proposed 2018 Rate Usage Included 1 Base Charge - All Users 46.41$ - 2 Consumption Charge - All Users 5.15 N/A 3 Mobile Homes 133.96 17,000 Proposed Rate Structure Changes to Sewer Fund Charges Existing 2017 Rates Recommended 2018 Rates Base Charge $928,323 $965,412 Manufactured Homes 113,782 118,337 Usage Charges 681,335 708,472 Total Revenues $1,723,440 $1,792,221 Pros: •Fixed Charges pay for fixed costs of the system •Eliminates minimum usage •Customers pay for what they use •Ease of administration •Easy to explain to rate payers Cons: •Any changes to rate structure will cause some shifts in burden of who pays •Quarterly Billing •Storm Water charges are billed as follows: Storm Water Fund -How are we doing things now? Existing 2017 Rate 1 Residential (Per Lot)14.72$ 2 Townhomes (Per Lot)19.08 3 Apartments (Per Acre)120.11 4 Condos (Per Acre)120.11 5 Commercial (Per Acre)187.52 6 Bethel University (Per Acre)187.52 7 Boston Scientific (Per Acre)187.52 8 Undeveloped (Per Acre)22.06 9 Undeveloped Residential (Per Acre)22.06 Current Rate Structure Key Findings –Storm Water •Fund has sufficient reserves 1.Significant capital projects over next 5-10 years 2.Elimination of Undeveloped Storm Water Fee •Take Away: 1.Elimination of Undeveloped Storm Water Fee has minimal impact on fund balance 2.No need to issue debt to pay for capital projects 32 Capital Projects –Storm Water Fund •Storm Water fund has sufficient cash to pay for projects. 33 Projects Project Number 2018 2019 2020 2021 2022 EXISTING INFRASTRUCTURE PROJECTS Storm Pond Maintenance 09-Storm-001 50,000 Storm Water Inlet/Outlet Repairs 13-Storm-001 25,000 Storm Water BMP Study/Construction 17-Storm-001 Old Snelling Ave PMP w/ Bridge Reconstruction 17-Str-004 50,000 Future PMP 18-Str-005 200,000 200,000 Indian Oaks/Floral Dr PMP - 2018 PMP 18-Str-065 350,000 Surface Water Project (Undetermined)18-Storm-001 200,000 Actual CIP (2017 Dollars)2017 550,000 125,000 200,000 0 200,000 Percent Inflation 3%3%3%3%3% Inflated Project Costs 566,500 132,613 218,545 - 231,855 Total Projects to be Bonded for:5-Year Term 0 0 0 0 0 10-Year Term 0 0 0 0 0 15-Year Term 0 0 0 0 0 Impact on Storm Water Fund 34 Target Cash = 6 mos. operating expenses, plus next year’s debt plus contingency Note: Does NOT include assumption for future TCAAP capital Proposed Storm Water Rates 35 Existing 2017 Rate Proposed 2018 Rate 1 Residential (Per Lot)14.72$ 15.01$ 2 Townhomes (Per Lot)19.08 19.46 3 Apartments (Per Acre)120.11 122.51 4 Condos (Per Acre)120.11 122.51 5 Commercial (Per Acre)187.52 191.27 6 Bethel University (Per Acre)187.52 191.27 7 Boston Scientific (Per Acre)187.52 191.27 8 Undeveloped (Per Acre)22.06 - 9 Undeveloped Residential (Per Acre)22.06 - Current Rate Structure Proposed Bonding –Sewer and Water 36 Year Water Fund Sewer Fund Storm Water Fund Total All Funds 2017 -$ -$ -$ -$ 2018 3,000,000 450,000 - 3,450,000 2019 - - - - 2020 1,200,000 1,100,000 - 2,300,000 2021 - - - - 2022 1,100,000 900,000 - 2,000,000 2023 - - - - 2024 - - - - 2025 - 500,000 - 500,000 2026 - - - - TOTAL 5,300,000$ 2,950,000$ -$ 8,250,000$ Sample Bill Impact –Residential Accounts 37 Type Low Median High Very High Sample 2017 Usage 5,883 12,506 19,172 40,917 Winter Average 4,462 8,424 22,973 42,548 Meter Size 5/8"5/8"5/8"5/8" Water Portion 48.74$ 68.80$ 92.27$ 184.78$ Sewer Portion 92.61 92.61 135.11 239.44 Storm Sewer Portion 14.72 14.72 14.72 14.72 Total Utility Bill 156.07$ 176.13$ 242.10$ 438.94$ Total Water 48.65$ 71.50$ 98.23$ 203.65$ Total Sewer 69.39$ 89.79$ 164.72$ 265.53$ Total Storm Sewer 15.01$ 15.01$ 15.01$ 15.01$ Total Bill 133.05$ 176.30$ 277.96$ 484.19$ 2018 Option: Combine Water Meter & Standby Charges; New Sewer Structure Residential Accounts Existing 2017 Rate Structure Sample Bill Impact –Residential Accounts Sample Bill Impact –Commercial Accounts 39 Type Low Median High Very High Large Meter Sample 2017 Usage 28,009 86,190 737,440 2,148,168 6,511,731 Winter Average 28,009 86,190 737,440 2,148,168 5,629,331 Meter Size 3/4"1.5"3.0"6.0"2.0", 3.0" & 10.0" Water Portion 123.37$ 964.42$ 5,149.21$ 14,450.83$ 45,044.24$ Sewer Portion 161.61 497.32 4,255.03 12,394.93 32,481.24 Storm Sewer Portion 131.98 745.96 988.87 3,442.87 34,534.54 Total Utility Bill 416.96$ 2,207.70$ 10,393.11$ 30,288.63$ 112,060.02$ Total Water 133.67$ 646.04$ 5,566.90$ 16,631.21$ 50,239.67$ Total Sewer 190.66$ 490.29$ 3,844.23$ 11,109.48$ 29,130.28$ Total Storm Sewer 134.62$ 760.88$ 1,008.65$ 3,511.73$ 35,225.23$ Total Bill 458.95$ 1,897.21$ 10,419.78$ 31,252.42$ 114,595.18$ Existing 2017 Rate Structure 2018 Option: Combine Water Meter & Standby Charges; New Sewer Structure Commercial Accounts Conclusions –“Base Model” •Annual 2% rate increases for all funds is not sufficient. –Sewer fund has interfund loan –Unable to pay for capital projects, except in Storm Water Fund •City will need to issue debt to pay for capital projects related to existing infrastructure •Water and Sewer funds will require rate increases –New water rate structure will eliminate Standby Charges –Sewer rates will stabilize revenue with higher minimum charges •Undeveloped storm water charges eliminated •Does NOT include TCAAP at this time 40 Next Steps 1.Incorporate proposed rate increases for all utility funds for 2018 as shown 2.Ehlers will take this “Base Model” and use it to build the “Development Model” that incorporates TCAAP –Water tower construction –Other new infrastructure –Projected new development –Impacts on utility funds 3.Ehlers will come back to Council to discuss “Development Model” 41 (651) 697-8506 skvilvang@ehlers-inc.com Stacie Kvilvang Sr. Municipal Advisor/Director (651) 697-8571 jvogt@ehlers-inc.com Jeanne Vogt Sr. Financial Specialist 42 DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: City Attorney Attendance at Council Meetings Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The City Council should consider providing further direction regarding expected City Attorney attendance at future meetings. Background The City Council has renewed a contract with Campbell and Knutson for City Attorney services. City Council and Staff both discussed having more City Attorney attendance at Council meetings, but a consensus was not reached. Council may provide further direction to the City Attorney; City Staff would recommend the City Attorney be present at least one meeting per month, or more depending on subject matter. Attachment N/A AGENDA ITEMS –1C MEMORANDUM DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: WSB Contract - Engineering Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The Council should provide further direction on the WSB contract for engineering services that was pulled from the December meeting. Background The City Council pulled the attached agreement with WSB for engineering services for further discussion. This position is to provide engineering support to the Public Works Director/City Engineer, as the City has eliminated the full-time City Engineer position. Currently, the City has budgeted $101,081 for City Engineering duties in other professional services; this contract would expect to cost the City $62,400, which does not include time allocated to projects. Attachment Attachment A: Memo and Contract with WSB AGENDA ITEMS –1D MEMORANDUM Page 1 of 1 CONSENT ITEM – 5G MEMORANDUM DATE: December 11, 2017 TO: Honorable Mayor and City Councilmembers William S. Joynes, Sr., City Administrator FROM: Dave Perrault, Interim Director of Finance and Administrative Services SUBJECT: Updated Contract for Professional Services with WSB Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The City Council should consider entering into a new Professional Services Agreement (PSA) with WSB to provide engineering and other support services as needed to the City of Arden Hills. Background In 2016, the City entered into an agreement, which was updated in 2017, for engineering and other support services with WSB. Subsequently, The City has hired a Director of Public Works/City Engineer; however, there is still a need to provide engineering project support up to twenty hours a week, and other support services on an as needed basis. WSB has agreed to provide the twenty weekly hours at a reduced rate, with any hours beyond that at the normal rate. This agreement is supported by both parties, and will supersede the previous PSA. Attachment Attachment A: Professional Services Agreement with WSB 701 Xenia Avenue South | Suite 300 | Minneapolis, MN 55416 | (763) 541-4800 Building a legacy – your legacy. Equal Opportunity Employer | wsbeng.com G:\00-MUNICIPAL\Clients - Cities - Counties\Arden Hills\Agreements - Contracts\20171211 Proposal Letter for Project Engineer and PSA.docx December 6, 2017 Mr. Bill Joynes City Administrator City of Arden Hills 1245 Highway 96 W Arden Hills, MN 55112 Re: Professional Service Agreement and Proposal to Provide Professional Services for Project Engineer Services Dear Mr. Joynes: We are pleased to provide the attached Professional Service Agreement and this scope of service for WSB & Associates, Inc. to provide Project Engineer services for the City of Arden Hills. Based on our recent discussions, we are proposing that Kelsey Gelhar continue to serve as the Project Engineer for the City of Arden Hills. Kelsey’s familiarity with the City of Arden Hills from her past year of working with Ms. Polka and City staff will allow her to continue to be a valuable resource for the City. Following is a proposed scope of services and activities. A.1 GENERAL SCOPE OF SERVICES AS PROJECT ENGINEER The City intends to retain WSB & Associates, Inc. (Engineer) as the Project Engineer and to provide general engineering and other related professional services. Typical general services (not all-inclusive) are listed below. A.1.1 Office Hours. The Engineer will generally maintain office hours at City Hall an average of twenty (20) hours per week, Monday through Friday, with a maximum of eighty (80) hours per month. The Engineer and Director of Public Works/City Engineer will evaluate the office hours required to provide service as needed and make adjustments agreeable to both parties. A.1.2 Municipal State Aid System Administration. The Engineer will assist with responsibilities related to maintaining the City’s Municipal State Aid Street System. Duties include but are not limited to performing annual mileage certification, mapping updates, and completing all current MnDOT administrative requirements, and coordinating traffic counts. A.1.3 Building and Site Plan Reviews. The Engineer will assist with the administration and coordination of the plan review process for non-development projects. These projects would include projects that are administered by a site plan approval and/or building permit issuance that do not include a plat and subdivision agreement. A.1.4 General Engineering Support. The Engineer will provide general engineering support as requested by the Director of Public Works/City Engineer and other departments. Mr. Bill Joynes December 6, 2017 Page 2 G:\00-MUNICIPAL\Clients - Cities - Counties\Arden Hills\Agreements - Contracts\20171211 Proposal Letter for Project Engineer and PSA.docx B.1 FEE FOR ENGINEER SERVICES B.1.1 For activities associated with general Project Engineer duties as identified in A.1.2 to A.1.4, the Engineer will be compensated at an hourly rate of $65.00 per hour for 2018 and $70.00 per hour for 2019. For all other project activities and additional hours beyond eighty (80) hours per month of the Project Engineer the Engineer shall be compensated based on our current fee schedule. C.1 TERM OF CONTRACT FOR ENGINEERING SERVICES C1.1 The term of services under this contract shall terminate on December 31, 2018 unless extended by an amendment to this agreement. C.1.2 The term may be extended for one (1) year, January 1, 2019 to December 31, 2019 with personnel to be mutually agreed upon by both parties. C.1.3 The contract may be terminated by the City at any time with a ninety (90) day separation notice. We appreciate the opportunity to share this proposal with you, and look forward to continuing to work with you and the City of Arden Hills. If you are in agreement with the scope of services and proposed fee, please sign in the appropriate space below and return one copy to us. Should you have any questions about this proposal, please contact me at (763)287-7191 or abrotzler@wsbeng.com. Sincerely, WSB & Associates, Inc. Andy Brotzler, P.E. Principal/Senior Project Manager AB/jmh Attachment cc: Sue Polka, City of Arden Hills Dave Perrault, City of Arden Hills ACCEPTED BY: The City of Arden Hills I hereby authorize WSB & Associates, Inc. to complete the services identified above for the hourly rates identified. Name Signature Date Professional Services Agreement 08.01.16 Page 1  WSB & ASSOCIATES, INC. PROFESSIONAL SERVICES AGREEMENT This Professional Services Agreement (the “Agreement”) is made as of the ___ day of December 2017, by and between the City of Arden Hills with an address of 1245 Highway 96 West, Arden Hills, Minnesota (“Client”), and WSB & Associates, Inc. with offices located at 701 Xenia Avenue South, Suite 300, Minneapolis, Minnesota 55416 (“Consultant”). Client and Consultant, for the consideration enumerated herein, do hereby agree as follows: SECTION 1 / GENERAL CONTRACT TERMS AND CONDITIONS The General Contract Terms and Conditions shall be as set forth in Exhibit A. SECTION 2 / SCOPE OF WORK The scope of work to be performed by Consultant is set forth in Exhibit B. The work and services to be performed hereunder and described in Exhibit B shall be referred to herein and in the General Contract Provisions as the “Project”. SECTION 3 / COMPENSATION The amount, method and timing for payment to the Consultant shall be in accordance with Exhibit C. SECTION 4 / WORK SCHEDULE The preliminary schedule of the work, if required, is set forth in Exhibit B. SECTION 5 / CLIENT RESPONSIBILITIES The client responsibilities are set out in Exhibit F. SECTION 6 / SPECIAL CONDITIONS Special conditions, if any, are as set forth in Exhibit G. SECTION 7 / EXHIBITS The following Exhibits are attached hereto and made a part of this Agreement: X Exhibit A General Contract Provisions X Exhibit B Scope of Work X Exhibit C Compensation X Exhibit D Insurance Schedule X Exhibit E Rate Schedule X Exhibit F Client Responsibilities Exhibit G Special Conditions All references to the “Agreement” in this Document and the Exhibits shall mean this Agreement and all of the Exhibits as one integrated Agreement SECTION 8 / ACCEPTANCE OF AGREEMENT Upon written acceptance of this Agreement by Client, Consultant shall commence the work. The undersigned hereby accept the terms and conditions of this agreement and Consultant is hereby authorized to perform the services described herein. CLIENT: CITY OF ARDEN HILLS CONSULTANT: WSB & ASSOCIATES, INC. ADDRESS: 1245 HIGHWAY 96 WEST ADDRESS: 701 XENIA AVENUE SOUTH ARDEN HILLS, MN 55112 SUITE 300 MINNEAPOLIS, MN 55416 BY: BY: SIGNATURE: SIGNATURE: TITLE: TITLE: Exhibit A – General Contract Provisions 11.01.16 Page 2 EXHIBIT A GENERAL CONTRACT PROVISIONS ARTICLE 1 – PERFORMANCE OF THE WORK Consultant shall perform the services under this Agreement in accordance with the care and skill ordinarily exercised by members of Consultant’s profession practicing under similar circumstances at the same time and in the same locality. Consultant makes no warranties, express or implied, under this Agreement or otherwise, in connection with its services. ARTICLE 2 – ADDITIONAL SERVICES If the Client requests that the Consultant perform any services which are beyond the scope as set forth in the Agreement, or if changed or unforeseen conditions require the Consultant to perform services outside of the original scope, then, Consultant shall promptly notify the Client of cause and nature of the additional services required. Upon notification, Consultant shall be entitled to an equitable adjustment in both compensation and time to perform. ARTICLE 3 – SCHEDULE Unless specific periods of time or dates for providing services are specified in a separate Exhibit, Consultant’s obligation to render services hereunder will be for a period which may reasonably be required for the completion of said services. The Client agrees that Consultant is not responsible for damages arising directly or indirectly from any delays for causes beyond Consultant’s control. For purposes of this Agreement, such causes include, but are not limited to, strikes or other labor disputes; severe weather disruptions, or other natural disasters or acts of God; fires, riots, war or other emergencies; any action or failure to act in a timely manner by any government agency; actions or failure to act by the Client or the Client’s contractor or consultants; or discovery of any hazardous substance or differing site conditions. If the delays outside of Consultant’s control increase the cost or the time required by Consultant to perform its services in accordance with professional skill and care, then Consultant shall be entitled to a reasonable adjustment in schedule and compensation. ARTICLE 4 – CONSTRUCTION OBSERVATION If requested by Client, Consultant shall visit the project during construction to become familiar with the progress and quality of the contractors’ work and to determine if the work is proceeding, in general, in accordance with plans, specifications or other contract documents prepared by Consultant for the Client. The Client has not retained the Consultant to make detailed inspections or to provide exhaustive or continuous project review and observation services. Consultant neither guarantees the performance of any Contractor retained by Client nor assumes responsibility for any Contractor’s failure to furnish and perform the work in accordance with the construction documents. Client acknowledges Consultant will not direct, supervise or control the work of contractors or their subcontractors, nor shall Consultant have authority over or responsibility for the contractors’ means, methods, or procedures of construction. Consultant’s services do not include review or evaluation of the Client’s, contractor’s or subcontractor’s safety measures, or job site safety. Job Site Safety shall be the sole responsibility of the contractor who is performing the work. For Client-observed projects, the Consultant shall be entitled to rely upon and accept representations of the Client’s observer. If the Client desires more extensive project observation or full-time project representation, the Client shall request such services be provided by the Consultant as an Additional Service. Consultant and Client shall then enter into a Supplemental Agreement detailing the terms and conditions of the requested project observation. ARTICLE 5 – OPINIONS OF PROBABLE COST Opinions, if any, of probable cost, construction cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance costs, collectively referred to as “Cost Estimates,” provided for are made or to be made on the basis of the Consultant's experience and qualifications and represent the Consultant's best judgment as an experienced and qualified professional design firm. The parties acknowledge, however, that the Consultant does not have control over the cost of labor, material, equipment or services furnished by others or over market conditions or contractor's methods of determining their prices, and any evaluation of any facility to be Exhibit A – General Contract Provisions 11.01.16 Page 3 constructed or acquired, or work to be performed must, of necessity, be viewed as simply preliminary. Accordingly, the Consultant and Client agree that the proposals, bids or actual costs may vary from opinions, evaluations or studies submitted by the Consultant and that Consultant assumes no responsibility for the accuracy of opinions of Cost Estimates and Client expressly waives any claims related to the accuracy of opinions of Cost Estimates. If Client wishes greater assurance as to Cost Estimates, Client shall employ an independent cost estimator as part of its Project responsibilities. ARTICLE 6 – REUSE AND DISPOSITION OF INSTRUMENTS OF SERVICE All documents, including reports, drawings, calculations, specifications, CADD materials, computers software or hardware or other work product prepared by Consultant pursuant to this Agreement are Consultant’s Instruments of Service and Consultant retains all ownership interests in Instruments of Service, including copyrights. The Instruments of Service are not intended or represented to be suitable for reuse by the Client or others on extensions of the Project or on any other project. Copies of documents that may be relied upon by Client are limited to the printed copies (also known as hard copies) that are signed or sealed by Consultant. Files in electronic format furnished to Client are only for convenience of Client. Any conclusion or information obtained or derived from such electronic files will be at the user’s sole risk. Consultant makes no representations as to long term compatibility, usability or readability of electronic files. If requested, at the time of completion or termination of the work, the Consultant may make available to the Client the Instruments of Service upon (i) payment of amounts due and owing for work performed and expenses incurred to the date and time of termination, and (ii) fulfillment of the Client’s obligations under this Agreement. Any use or re-use of such Instruments of Service by the Client or others without written consent, verification or adaptation by the Consultant except for the specific purpose intended will be at the Client’s risk and full legal responsibility and Client expressly releases all claims against Consultant arising from re-use of the Instruments of Service without Consultant’s written consent, verification or adaptation. The Client will, to the fullest extent permitted by law, indemnify and hold the Consultant harmless from any claim, liability or cost (including reasonable attorneys' fees, and defense costs) arising or allegedly arising out of any unauthorized reuse or modification of these Instruments of Service by the Client or any person or entity that acquires or obtains the reports, plans and specifications from or through the Client without the written authorization of the Consultant. Under no circumstances shall transfer of Instruments of Service be deemed a sale by Consultant, and Consultant makes no warranties, either expressed or implied, of merchantability and fitness for any particular purpose. Consultant shall be entitled to compensation for any consent, verification or adaption of the Instruments of Service for extensions of the Project or any other project. ARTICLE 7 – PAYMENTS Payment to Consultant shall be on a lump sum or hourly basis as set out in the Agreement. Consultant is entitled to payment of amounts due plus reimbursable expenses. Client will pay the balance stated on the invoice unless Client notifies Consultant in writing of any disputed items within fifteen (15) days from the date of invoice. In the event of any dispute, Client will pay all undisputed amounts in the ordinary course, and the Parties will endeavor to resolve all disputed items. All accounts unpaid after thirty (30) days from the date of original invoice shall be subject to a service charge of 1-1/2% per month, or the maximum amount authorized by law, whichever is less. Consultant reserves the right to retain instruments of service until all invoices are paid in full. Consultant will not be liable for any claims of loss, delay, or damage by Client for reason of withholding services or instruments of service until all invoices are paid in full. Consultant shall be entitled to recover all reasonable costs and disbursements, including reasonable attorney fees, incurred in connection with collecting amounts owed by Client. In addition, Consultant may, after giving seven (7) days’ written notice to Client, suspend services under this Agreement until it receives full payment for all amounts then due for services, expenses and charges. Payment methods, expenses and rates may be more fully described in Exhibit C and Exhibit E. ARTICLE 8 – SUBMITTALS AND PAY APPLICATIONS If the Scope of Work includes the Consultant reviewing and certifying the amounts due the Contractor, the Consultant’s certification for payment shall constitute a representation to the Client, that to the best of the Consultant’s knowledge, information and belief, the Work has progressed to the point indicated and that the quality of the Work is in general accordance with the Documents issued by the Consultant. The issuance Exhibit A – General Contract Provisions 11.01.16 Page 4 of a Certificate for Payment shall not be a representation that the Consultant has (1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed construction means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received from Subcontractors and material suppliers and other data requested by the Client to substantiate the Contractor’s right to payment, or (4) ascertained how or for what purpose the Contractor has used money previously paid on account of the Contract Sum. Contractor shall remain exclusively responsible for its Work. If the Scope of Work includes Consultant’s review and approval of submittals from the Contractor, such review shall be for the limited purpose of checking for conformance with the information given and the design concept. The review of submittals is not intended to determine the accuracy of all components, the accuracy of the quantities or dimensions, or the safety procedures, means or methods to be used in construction, and those responsibilities remain exclusively with the Client’s contractor. ARTICLE 9 – HAZARDOUS MATERIALS Notwithstanding the Scope of Services to be provided pursuant to this Agreement, it is understood and agreed that Consultant is not a user, handler, generator, operator, treater, arranger, storer, transporter, or disposer of hazardous or toxic substances, pollutants or contaminants as any of the foregoing items are defined by Federal, State and/or local law, rules or regulations, now existing or hereafter amended, and which may be found or identified on any Project which is undertaken by Consultant. The Client agrees to indemnify Consultant and its officers, subconsultant(s), employees and agents from and against any and all claims, losses, damages, liability and costs, including but not limited to costs of defense, arising out of or in any way connected with, the presence, discharge, release, or escape of hazardous or toxic substances, pollutants or contaminants of any kind, except that this clause shall not apply to such liability as may arise out of Consultant’s sole negligence in the performance of services under this Agreement arising from or relating to hazardous or toxic substances, pollutants, or contaminants specifically identified by the Client and included within Consultant’s services to be provided under this Agreement. ARTICLE 10 – INSURANCE Consultant has procured general and professional liability insurance. On request, Consultant will furnish client with a certificate of insurance detailing the precise nature and type of insurance, along with applicable policy limits. Additional Insurance requirements are listed in Exhibit D. ARTICLE 11 – TERMINATION OR SUSPENSION If Consultant’s services are delayed or suspended in whole or in part by Client, or if Consultant’s services are delayed by actions or inactions of others for more than sixty (60) days through no fault of Consultant, Consultant shall be entitled to either terminate its agreement upon seven (7) days written notice or, at its option, accept an equitable adjustment of rates and amounts of compensation provided for elsewhere in this Agreement to reflect reasonable costs incurred by Consultant in connection with, among other things, such delay or suspension and reactivation and the fact that the time for performance under this Agreement has been revised. This Agreement may be terminated by either party upon seven (7) days written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. In the event of termination Consultant shall be compensated for services performed prior to termination date, including charges for expenses and equipment costs then due and all termination expenses. This Agreement may be terminated by either party upon ninety (90) days written notice without cause. Consultant shall upon termination only be entitled to payment for the work performed up to the Date of termination. In the event of termination, copies of plans, reports, specifications, electronic drawing/data files (CADD), field data, notes, and other documents whether written, printed or recorded on any medium whatsoever, finished or unfinished, prepared by the Consultant pursuant to this Agreement and pertaining to the work or to the Project, (hereinafter "Instruments of Service"), shall be made available to the Client upon payment of all amounts due as of the date of termination. All provisions of this Agreement allocating Exhibit A – General Contract Provisions 11.01.16 Page 5 responsibility or liability between the Client and Consultant shall survive the completion of the services hereunder and/or the termination of this Agreement. ARTICLE 12 – INDEMNIFICATION The Consultant agrees to indemnify and hold the Client harmless from any damage, liability or cost to the extent caused by the Consultant’s negligence or willful misconduct. The Client agrees to indemnify and hold the Consultant harmless from any damage, liability or cost to the extent caused by the Client’s negligence or willful misconduct. ARTICLE 13 – WAIVER OF CONSEQUENTIAL DAMAGES The Consultant and Client waive claims against each other for consequential damages arising out of or relating to this contract. This mutual waiver includes damages incurred by the Client for rental expenses, for loss of use, loss of income, lost profit, project delays, financing, business and reputation and for loss of management or employee productivity or of the services of such persons; and (2) Damages incurred by the Consultant for principal office expenses including the compensation for personnel stationed there, for losses of financing, business and reputation and for loss of profit except anticipated profit arising directly from the Work. The Consultant and Client further agree to obtain a similar waiver from each of their contractors, subcontractors or suppliers. ARTICLE 14 – WAIVER OF CLAIMS FOR PERSONAL LIABILITY It is intended by the parties to this Agreement that Consultant’s services shall not subject Consultant’s employees, officers or directors to any personal legal exposure for the risks associated with this Agreement. Therefore, and notwithstanding anything to the contrary contained herein, the Client agrees that as the Client’s sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against Consultant, and not against any of Consultant’s individual employees, officers or directors. ARTICLE 15 – ASSIGNMENT Neither Party to this Agreement shall assign its interest in this agreement, any proceeds due under the Agreement nor any claims that may arise from services or payments due under the Agreement without the written consent of the other Party. Any assignment in violation of this provision shall be null and void. Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Consultant or Client. This Agreement is for the exclusive benefit of Consultant and Client and there are no other intended beneficiaries of this Agreement. ARTICLE 16 – CONFLICT RESOLUTION In an effort to resolve any conflicts that arise during the design or construction of the project or following the completion of the project, the Client and Consultant agree that all disputes between them arising out of or relating to this Agreement shall be submitted to nonbinding mediation as a precondition to any formal legal proceedings. ARTICLE 17 – CONFIDENTIALITY The Consultant agrees to keep confidential and not to disclose to any person or entity, other than the Consultant’s employees, subconsultants and the general contractor and subcontractors, if appropriate, any data and information furnished to the Consultant and marked CONFIDENTIAL by the Client. These provisions shall not apply to information in whatever form that comes into the public domain, nor shall it restrict the Consultant from giving notices required by law or complying with an order to provide information or data when such order is issued by a court, administrative agency or other authority with proper jurisdiction, or if it is reasonably necessary for the Consultant to complete services under the Agreement or defend itself from any suit or claim. ARTICLE 18 – AVAILABLE INSURANCE PROCEEDS AND LIMITATION OF LIABILITY Consultant maintains professional liability insurance with a liability limit of not less than $2,000,000 per claim. The Consultant’s total liability to Client shall not exceed the total available insurance policy limits per claim available to Consultant under its professional liability insurance policy. Client hereby agrees that to the fullest extent permitted by law, the Consultant’s total liability to Client for any and all injuries, claims, losses, expenses or damages whatsoever arising out of or in any way related to or arising from this Agreement from any cause or causes including, but not limited to, Consultant’s negligence, errors, Exhibit A – General Contract Provisions 11.01.16 Page 6 omissions, strict liability, breach of contract or breach of warranty (Client’s Claims) shall not exceed the total policy limits available to Consultant under its professional liability insurance policy for settlement or satisfaction of Client’s Claims under the terms and conditions of the Consultant’s professional liability insurance policy applicable hereto. Notwithstanding the language above, Client agrees that with regard to any claim arising from or relating to Consultant’s provision of geotechnical engineering services, construction materials testing, special inspections, and/or environmental engineering services, including but not limited to environmental site assessments, that Consultant’s liability for any claims asserted by or through Client shall be limited to $50,000. Client and Consultant each further agree that neither will be responsible for any incidental, indirect, or consequential damages (including loss of use or loss of profits) sustained by the other, its successors or assigns. This mutual waiver shall apply even if the damages were foreseeable and regardless of the theory of recovery plead or asserted. ARTICLE 19 – CONTROLLING LAW This Agreement is to be governed by the laws of the State of Minnesota. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, including but not limited to claims for negligence or breach of warranty, that is not settled by nonbinding mediation shall be settled by the law of the state of Minnesota. ARTICLE 20 – LOCATION OF UNDERGROUND IMPROVEMENTS Where requested by Client, Consultant will perform customary research to assist Client in locating and identifying subterranean structures or utilities. However, Consultant may reasonably rely on information from the Client and information provided by local utilities related to structures or utilities and will not be liable for damages incurred where Consultant has complied with the standard of care and acted in reliance on that information. The Client agrees to waive all claims and causes of action against the Consultant for claims by Client or its contractors relating to the identification, removal, relocation, or restoration of utilities, or damages to underground improvements resulting from subsurface penetration locations established by the Consultant. Exhibit B – Scope of Services Page 1 EXHIBIT B SCOPE OF WORK GENERAL SCOPE OF SERVICES ARTICLE B.1 - PRELIMINARY REPORT/STUDY PHASE Subject to further clarification and refinement on a project-by-project basis, the Consultant shall in proper time and sequence: B.1.1 Consult with the City representative to determine the requirements of the project, review available data, attend necessary conferences, and be available for general consultation. B.1.2 Advise the City as to the necessity of the City’s providing or obtaining from others data or services and assist the City in obtaining such data and services. B.1.3 Identify and analyze requirements of governmental authorities having jurisdiction to approve the design of the project and participate in consultations with such authorities. B.1.4 Make such preliminary studies, layouts, or field surveys to verify and supplement existing elevation and topographic information and preliminary cost estimates to clearly identify potential construction or financing problems. B.1.5 Assist the City in obtaining all required subsurface investigations as required for the preparation of the feasibility report. B.1.6 Prepare a feasibility report on the preliminary engineering study of the project in sufficient detail to indicate the problems involved. The report shall include the desired phased program, if required, and the appropriate alternate solutions. The report will also include schematic layouts, sketches, conceptual design criteria with appropriate exhibits to indicate the considerations involved (including applicable requirements of governmental authorities having jurisdiction over the project), preliminary estimate of project cost, typical examples of proposed assessments preliminary identification of right-of-way and easement requirements, and the Consultant’s conclusions and recommendations. B.1.7 Furnish copies of the feasibility report documents and review the feasibility report with City staff. B.1.8 If required, the Consultant shall present the feasibility report to the proper reviewing agencies and to the City Council. The Consultant shall attend the public hearing for the project. ARTICLE B.2 – FINAL DESIGN PHASE Subject to further clarification and refinement on a project-by-project basis, the Consultant shall, in proper time and sequence: B.2.1 On the basis of the accepted preliminary design documents and the current opinion of probable cost, prepare contract documents consisting of final drawings and specifications to show and describe the scope, extent, and character of the work to be furnished and performed by Contractor(s) including Advertisement for Bids, Instructions to Bidders, Bid Form, Form of Agreement, Performance and Payment Bond Form, General Conditions, Special Conditions, and Technical Specifications. B.2.2 Provide technical criteria, written descriptions and design data for use in filing applications for routine permits or obtaining approvals of such governmental authorities as have jurisdiction to approve the design of the project, and assist the City in consultations with appropriate authorities. The Consultant shall prepare and submit all permit applications to the appropriate agencies. The City shall be responsible for all permit fees. Exhibit B – Scope of Services Page 2 B.2.3 Advise the City of any adjustments to the latest opinion of probable cost caused by changes in extent or design requirements of the project and furnish a current opinion of probable cost based on the drawings and specifications. B.2.4 Prepare for review and approval by the City, its legal counsel and other advisors contract agreement forms, general conditions, supplementary conditions, bid forms, advertisement for bid and instructions to bidders, and assist in the preparation of other related documents. B.2.5 Attend necessary conferences and be available for general consultation. B.2.6 Furnish three (3) copies of the above documents and of the drawings and specifications and present and review them in person with the City, along with completing a plans-in-hand site inspection. Make minor revisions and adjustments as required following review by the City. ARTICLE B.3 – BIDDING PHASE Subject to further clarification and refinement on a project-by-project basis, the Consultant shall in proper time and sequence: B.3.1 Furnish plans and specifications for agency review and furnish copies to the City for bidding and construction purposes as a part of this Contract. B.3.2 Issue addenda as appropriate to interpret, clarify, or expand the bidding documents. B.3.3 Assist the City in obtaining and evaluating bids and awarding contracts for the construction of the project. B.3.4 Consult with and advise the City as to the acceptability of subcontractors, suppliers, and other persons and organizations proposed by the prime contractor(s) (herein called “Contractor(s)”) for the portions of the work as to which such acceptability is required by the bidding documents. B.3.5 Consult with and advise the City concerning and determining the acceptability of substitute materials and equipment proposed by Contractor(s) when substitution prior to the award of contracts is allowed by the bidding documents. B.3.6 Attend bid opening and prepare bid tabulation sheets. ARTICLE B.4 – CONSTRUCTION PHASE Subject to further clarification and refinement on a project-by-project basis, the Consultant shall: B.4.1 Consult with and advise the City and act as the City’s representative as provided in the contract documents, which may not be modified to affect Consultant’s responsibilities except by written agreement signed by the City and the Consultant. B.4.2 Conduct pre-construction conference to be attended by the Contractor, City, and others as may be requested by the City. B.4.3 Make visits to the site at intervals appropriate to the various stages of construction to observe as an experienced and qualified design professional the progress and quality of the executed work of the Contractor(s), and to determine if such work is proceeding in accordance with the contract documents. During such visits and on the basis of the on-site observations, the Consultant will keep the City informed of the progress of the work and will endeavor to identify for the City defects and deficiencies in the work of the Contractor(s). This agreement does not require the Consultant to evaluate contractor’s safety methods. It is agreed that safety matters are Contractor’s responsibility and that the Consultant shall be responsible only for the acts or omissions of its own employees. The Consultant may disapprove work as failing to conform to the contract documents. The Consultant shall not have control or charge of and shall not be responsible for construction means, methods, techniques, sequences or Exhibit B – Scope of Services Page 3 procedures, or for safety precautions and programs in connection with the work. The Consultant shall be obligated, however, to disclose known dangerous circumstances to the City. B.4.4 Review samples, schedules, shop drawings, the result of tests and inspections, and other data which the Contractor is required to submit, but only for the conformance with the design concept of the project and compliance with the information given in the contract documents, (but such review shall not extend to means, methods, sequences, techniques, or procedures of construction or to safety precautions and programs incidental thereto). The Consultant shall receive and review (for general content as required by the specification), maintenance and operating instructions, schedules, guarantees, bonds, and certificates of inspection which are to be assembled by the Contractor in accordance with the contract documents. B.4.5 Issue all instructions of the City to Contractor; issue necessary interpretations and clarifications of the contract documents and in connection therewith prepare change orders as required for the City’s approval and have authority, as the City’s representative, to require special inspection or testing of the work. B.4.6 Review the Contractor’s application for payment, determine the amount owing the Contractor and make recommendations to the City regarding the payment thereof. The Consultant’s recommendations are based on on-site observations as an experienced and qualified design professional. The recommendations by the Consultant constitute a representation to the City that to the best of their knowledge, information and belief, the work has progressed to the point indicated on said application and the quality of work is in accordance with the contract documents, subject to the results of any subsequent test called for by the contract documents and any qualifications stated in his recommendations. B.4.7 Conduct, in the presence of the designated representative, a site visit to determine if the project is substantially complete and conduct a final site visit to determine if the work has been completed in accordance with the contract documents. Such site visits may include representatives from the City and/or other involved governmental agencies. If the Contractor has fulfilled all of his obligations, the Consultant shall give written notice to the City and the Contractor that the work is acceptable for final payment. B.4.8 The Consultant shall not have control or charge of and shall not be responsible for construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the work. The Consultant shall be obligated, however, to disclose known dangerous circumstances to the City. B.4.9 The Consultant shall furnish the City with a list detailing final quantities and costs in a letter stating to the best knowledge of the Consultant that the work is in compliance with the plans, specifications and change orders. ARTICLE B.5 – SCOPE OF SERVICES FOR DEDICATION PROJECTS Subject to further clarification and refinement on a project-by-project basis, the Consultant shall: B.5.1 Following written notice from the City Council, review the platting, concept, design, plans and specifications for each Dedication Project to determine that they comply with those written City Standards that have been approved by the City Council for such projects. Require the developer or his Consultant to submit the plans to appropriate utility companies and other concerned agencies for their review, concurrence and issuance of permits as required. Upon completion of the review, submit a written report to the City Council to assist the Consultant and the City Council in approving or disapproving the proposed Dedication Project. B.5.2 Submit a written progress report to the City Council for each Dedication Project under construction. The report should include budget, schedule and progress information. B.5.3 Submit a written report to assist the City Council in determining that the project has been Exhibit B – Scope of Services Page 4 satisfactorily completed. The Consultant shall acquire from the developer or the developer’s engineer five (5) sets of plans of the work that have been revised to show “as constructed” conditions, said plans to be submitted to the City within 90 days following completion of the project. ARTICLE B.6 – SCOPE OF ADDITIONAL SERVICES AS THE CONSULTANT If authorized in writing by the City, the Consultant shall furnish additional services of the following type: B.6.1 Providing services of professional subconsultants as required for a particular project. B.6.2 Providing the type of surveying or related engineering services necessary for preparation of permanent and/or temporary easements, boundary surveys, or plat documents. B.6.3 Review of developer’s plats and concept plans. Provide assistance to the developer in preparing a plat for improvement projects. B.6.4 Additional services in connection with the project not otherwise provided for in this Agreement. Exhibit C - Compensation Page 8 EXHIBIT C COMPENSATION The Client shall pay the Consultant for Basic Services rendered on the basis of a negotiated lump sum fee, on an hourly basis, or as a percentage of the construction cost, as mutually agreed to and deemed fair and reasonable for the particular work to be performed. The method of payment will be determined at the start of the project. Consultant’s current fee schedule with hourly rates is attached to this contract as Exhibit E. The rate schedule is for 2018, and will remain in effect for services rendered through December 31, 2018. The fee schedule will be evaluated on an annual basis by the Consultant and adjusted to account for inflation and other factors. The Consultant will submit a revised fee schedule prior to December 31 on an annual basis. ARTICLE C.1 – PROJECT WORK Compensation for specific studies or the design and construction administration of City improvements will be determined on a project-by-project basis. The proposed compensation will be detailed within a written letter proposal submitted by the Consultant to the Client prior to beginning work. If the scope of the project changes after it is authorized, the Consultant will discuss it with the Client and determine an appropriate fee modification. Typically, project fees are billed hourly. ARTICLE C.2 – DEVELOPMENT/APPLICATION REVIEW Services related to development applications review will be billed on an hourly basis. ARTICLE C.3 – INDEPENDENT CONSULTANTS The cost of services performed by independent consultants or agencies for environmental evaluation, soil testing, laboratory services, or other services will be billed to the Client at the Consultant’s cost with no markup. ARTICLE C.4 – PAYMENT FOR REVISIONS OR OTHER WORK If the Client directs that revisions be made to the plans and specifications following approval of the plans and specifications by the Client or if the City Council directs Consultant to perform other work, the Consultant shall be compensated for the cost of such revisions at the hourly fee. The Consultant shall be given additional compensation when additions consist of enlargement or extension of the project. Additional compensation will be on the same basis as agreed to for the original plans and specifications. ARTICLE C.5 – RECEIPT OF PAYMENT In order to receive payment for services, the Consultant shall submit monthly invoices describing in detail the services performed in accordance with this contract. Separate statements shall be submitted for each project or a detailed breakdown shall be furnished showing the distribution of charges to each project. The Client shall pay Consultant upon receipt of each monthly invoice. For hourly and percentage of construction cost contracts, the personnel who worked on the project shall be included. Construction services shall include daily reports detailing the time for each day that the individual was working on the project. All invoices will include the Client representative who authorized the work. ARTICLE C.6 – EXPENSES Consultant shall be reimbursed for reasonable expenses related to the scope of services of this contract and/or individual projects. The Consultant shall be reimbursed for the actual cost of the expenses, without markup. Typical expenses include, but are not limited to, the following:  Permit fees  Plan and specification reproduction fees  Costs related to the development of project photos The following shall not be considered reimbursable expenses:  Mileage  Mobile phone usage  Computer equipment time  Preparation and reproduction of common correspondence  Mailing Exhibit D – Insurance Schedule 10.01.17 Page 9 EXHIBIT D INSURANCE SCHEDULE GENERAL LIABILITY Carrier: Phoenix Insurance Company Type of Insurance: Commercial General Liability Coverage: General Aggregate $2,000,000 Products-Comp/Ops Aggregate $2,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence $1,000,000 Damage to Rented Premises $1,000,000 Medical Expenses (Any one person) $5,000 AUTOMOBILE LIABILITY Carrier: Travelers Indemnity Company Type of Insurance: Any Auto Hired Autos Non-Owned Autos Coverage: Combined Single Limit $1,000,000 UMBRELLA Carrier: Travelers Indemnity Company Coverage: Each Occurrence/Aggregate $5,000,000 WORKER'S COMPENSATION AND EMPLOYERS' LIABILITY Carrier: Travelers Casualty Insurance Coverage: Statutory Each Accident $ 1,000,000 Disease-Policy Limit $ 1,000,000 Disease-Each Employee $ 1,000,000 PROFESSIONAL LIABILITY (Errors and Omissions) Carrier: XL Specialty Insurance Company Coverage: Each Claim $ 5,000,000 Annual Aggregate $ 10,000,000 Certificates of Insurance will be provided upon request. 2018 Rate Schedule Building a legacy – your legacy. Equal Opportunity Employer | wsbeng.com Billing Rate/Hour Principal $163-$182 Associate / Sr. Project Manager / Sr. Project Engineer $147-$182 Project Manager $128-$142 Project Engineer $112-$142 Graduate Engineer $85-$105 Sr. Landscape Architect / Sr. Planner / Sr. GIS Specialist $115-$142 Landscape Architect / Planner / GIS Specialist $68-$107 Engineering Specialist / Sr. Environmental Scientist $97-$139 Engineering Technician / Environmental Scientist $56-$92 Construction Observer $92-$116 Pavement Coring One-Person Crew $170 Two-Person Crew $255 Survey One-Person Crew $140 Two-Person Crew $185 Three-Person Crew $198 Office Technician $50-$90 Costs associated with word processing, cell phones, reproduction of common correspondence, and mailing are included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by contract. Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit fees; delivery costs; etc. Multiple rates illustrate the varying levels of experience within each category. Rate Schedule is adjusted annually. EXHIBIT E Exhibit F – Client Responsibilities 08.01.16 Page 10 EXHIBIT F CLIENT RESPONSIBILITIES The Client’s responsibilities related to the services to be provided by Consultant are generally as set out below. These responsibilities can be modified through Supplemental Agreements. In order to permit the Consultant to perform the services required under this Agreement, the Client shall, in proper time and sequence and where appropriate to the Project, at no expense to the Consultant: ARTICLE F.1 Provide available information as to its requirements for the Project, including copies of any design and construction standards and comprehensive plans which the Client desires Consultant to follow or incorporate into its work. ARTICLE F.2 Guarantee access to and make all provisions for the Consultant to enter upon public and private lands to enable the Consultant to perform its work under this Agreement. ARTICLE F.3 Provide such legal, accounting and insurance counseling services as may be required for this Project. ARTICLE F.4 Notify the Consultant whenever the Client observes or otherwise becomes aware of any defect in the Project construction or design. ARTICLE F.5 Designate a Client Representative with authority to transmit and receive instructions and information, interpret and define the Client’s policies with respect to services rendered by the Consultant, and authority to make decisions as required for Consultant to complete services required under this Agreement. ARTICLE F.6 Act promptly to approve all pay requests, Supplemental Agreements, or request for information by Consultant as set out below. ARTICLE F.7 Furnish data (and professional interpretations thereof) prepared by or services performed by others, including where applicable, but not limited to, previous reports, core borings, sub-surface explorations, hydrographic and hydrogeologic surveys, laboratory tests and inspection of samples, materials and equipment; appropriate professional interpretations of the foregoing data; environmental assessment and impact statements; property, boundary, easement, right-of-way, topographic and utility surveys; property description; zoning, deed and other land use restrictions; and other special data. ARTICLE F.8 Require all Utilities with facilities in the Client’s Right of Way to Locate and mark said utilities upon request, Relocate and/or protect said utilities as determined necessary to accommodate work of the Project, submit a schedule of the necessary relocation/protection activities to the Client for review and comply with agreed upon schedule. ARTICLE F.9 Review all reports, sketches, drawings, specifications and other documents prepared and presented by the Consultant, obtain advice of legal, accounting and insurance counselors or others as Client deems necessary for such examinations and render in writing decisions pertaining thereto. ARTICLE F.10 Where appropriate, endeavor to identify, remove and/or encapsulate asbestos products or materials or pollutants located in the project area prior to accomplishment by the Consultant of any work on the Project. Exhibit F – Client Responsibilities 08.01.16 Page 11 ARTICLE F.11 Provide record drawings and specifications for all existing physical plants of facilities which are pertinent to the Project. ARTICLE F.12 Provide the foregoing in a manner sufficiently timely so as not to delay the performance by the Consultant of the services in accordance with the Contract Documents. ARTICLE F.13 Consultant shall be entitled to rely on the accuracy and completeness of information or services furnished by the Client or others employed by the Client. Consultant shall endeavor to verify the information provided and shall promptly notify the Client if the Consultant discovers that any information or services furnished by the Client is in error or is inadequate for its purpose. ARTICLE F.14 Client shall bear all costs incidental to compliance with the requirements of this article. DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Fee Based System For Public Safety Services Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The Council should provide direction on the City Attorney’s presentation. Background The City Council requested the City Attorney provide a presentation on a fee based system for public safety services. Please see the attached from the City Attorney regarding the fee based system, the City Attorney will be present to talk-thru the memo and answer any questions. Attachment Attachment A: City Attorney Memo on Fee Based Public Safety Services AGENDA ITEMS –1E MEMORANDUM Page 1 of 2 DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Personnel Decisions – Finance Director Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The Council should provide further direction on the hiring of a Finance Director. Background The City currently has the following openings: Finance and Administrative Services Director, Community Development Director, and Public Works Working Foreman. Following discussions with the Personnel Committee, the most immediate need is for a Finance Director. The other positions, unless otherwise directed by Council, will be considered in the following manner: The Community Development Director will be discussed at the Council Retreat, and the foreman, per the recommendation of Public Works, will be revisited mid-year. There is a current recommendation by the City Administrator to reorganize the Finance and Administration Department to separate the administration duties, with the exception of payroll and related functions, from the Finance Department and move them back to the Administration Department. Assuming this recommendation is approved by the City Council, then the City Administrator is recommending the immediate hire of a Finance Director in place of the Finance and Administrative Services Director, please see the attached updated job description to reflect duties assigned to the Finance Director. There is a need to have a Finance Director in place as the City will soon begin its preliminary audit (March) and final audit (April), and as the budget cycle starts in April. A salary comparison done in 2017 is also included for similar roles in surrounding cities. The role is currently budgeted at Grade 20, it is recommended the role be hired within in this same salary range. AGENDA ITEMS –1F MEMORANDUM Page 2 of 2 Grade 20 Min Max $95,391.00 $120,838.00 Attachment Attachment A: Updated Finance Director Job Description Attachment B: Salary Comparison 1 CITY OF ARDEN HILLS POSITION DESCRIPTION Position Title: Finance Director Department: Finance Department Accountable to: City Administrator Positions Supervised: Accounting Analyst, Accounting Clerk Status: Regular Full Time January 2018 PRIMARY OBJECTIVES Performs complex professional work in the overall administration and management of the City services and operations City’s Finance Department to include, but not limited to, planning and developing fiscally sound financial and accounting practices, ensuring compliance with State and Federal laws related to Human Resources finance and accounting, keeping the City current with efficient and cost effective technology , providing services to City departments to assure compliance with the City’s policies, goals, and programs and related duties as apparent or assigned. Work involves setting policies and goals under the direction of the City Administrator relating to finance and accounting. Departmental supervision is exercised over Finance Analyst and City Clerk. Limited oversight is exercised over the Accounting Analyst, Accounting Clerk, Deputy Clerk, Office Support Specialist and the Customer Service Specialist. the Accounting Analyst and Accounting Clerk. QUALIFICATION REQUIREMENTS To perform this job successfully, an individual must be able to perform each essential function satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. ESSENTIAL FUNCTIONS OF THE POSITION Provides the overall administration and management direction for the daily financial affairs of the City. Oversees, designs and manages policies and procedures for bill payment, deposit of monies, utility billing, payroll, fixed assets and selection of the City’s banking services. Provides detailed guidance and direction in the preparation of the annual budget for the City; assists with budget implementation. Oversees the monthly and quarterly budget reports and the development of the ten (10) year fin ancial plan. Performs, prepares and oversees long-range financial management plans and annual forecasts to create a strategic context for evaluating the annual budget and for measuring the long -term effect of decisions for evaluating future revenues, exp enditures, cash flows and fund balances. Prepares and oversees the preparation of the City’s Annual Budget Document, ensuring the report is prepared in accordance with the Distinguished Budget Presentation Awards Program criteria sponsored by the GFOA. Prepares and oversees the preparation of the City’s Comprehensive Annual Financial Report (CAFR), Popular Annual Financial Report (PAFR), ensuring the reports are prepared in accordance with the Certificate of Conformance programs sponsored by GFOA. Provides for the investment of all City funds and oversee the administration of the City’s debt. 2 Acts as Treasurer for the City and assumes all statutory requirements of the position. Serves as Treasurer of the Economic Development Authority. Administers and oversees human resource functions including compensation, benefit administration, employee relations, worker’s compensation, participates on the labor negotiation team, training, risk management, wellness programs and personnel systems and procedures. Administers and oversees the payroll function of human resource including compensation, benefit administration, participates on the labor negotiation team , and personnel systems and procedures. Coordinates implementation of information technology rel ating to accounting and payroll syst em s. Oversees the development of a City-wide safety program including coordination of monthly safety meetings. Serves as the Acting City Administrator in his/her absence. Represents the City on various boards and to various state, metropolitan and county agencies. Staff liaison to the Financial Planning and Analysis Committee. Attends all City Council meetings, Financial Planning and Analysis Committee meetings, Economic Development Authority meetings, and other meetings as appropriate. EDUCATION and/or EXPERIENCE Bachelor's degree and considerable experience in finance, accounting, or equivalent combination of education and experi ence. Previous supervisory experience required. Master’s degree preferred; CPA or Certified Public Finance Officer (CPFO) designation preferred. KNOWLEDGE, SKILLS AND ABILITIES Comprehensive knowledge of general laws and administrative policies governing agency financial practices and procedures; comprehensive knowledge of the principles and practices of public sector accounting; thorough knowledge of the principles and practices of a public purchasing system; thorough knowledge of the practices, methods and laws relating to public personnel management; general knowledge of the principles, practices and equipment of data processing; ability to evaluate complex financial systems and efficiently formulate and install accounting methods, procedures, forms and records; ability to communicate complex ideas effectively both orally and in writing. ability to prepare informative financial reports; ability to plan, organize, direct and evaluate the work of subordinate employees; ability to establish and maintain eff ective working relationships with public officials, Authority Board members, associates and the general public. PHYSICAL DEMANDS This work requires the occasional exertion of up to 25 pounds of force; work regularly requires sitting, speaking or hearing, using hands to finger, handle or feel and repetitive motions, frequently requires standing, walking and reaching with hands and arms and occasionally requires climbing or balancing, stooping, kneeling, crouching or crawling, pushing or pulling and lifting; work has standard vision requirements; vocal communication is required for expressing or exchanging ideas by means of the spoken word; hearing is required to perceive information at normal spoken word levels; work requires preparing and analyzing written or computer data, using of measuring devices, operating machines, operating motor vehicles or equipment and observing general surroundings and activities; work occasionally requires exposure to outdoor weather conditions; work is generally in a moderately noisy location (e.g. business office, light traffic). SPECIAL REQUIREMENTS Minnesota Driver's License. 3 SELECTION GUIDELINES Formal application, rating of education and experience; oral interview and reference check; job related tests may be required. The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. CITY OF ARDEN HILLS IS AN EQUAL OPPORTUNITY EMPLOYER ___________________________________________________________________ NON-DISCRIMINATION POLICY The City of Arden Hills does not discriminate on the basis of handicapped status in the admission or access to or treatment or employment in its programs and activities. __________________________________________________________________ DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Restructuring Departments Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider City Council should provide feedback or direction on the restructuring of the Finance and Administration Department as proposed by the City Administrator. Background Under the current department structure both finance and administration duties fall to the Director of Finance and Administrative Services. It is the City Administrator’s recommendation that the administration department be reorganized to fall under the City Administrator to include the human resources function. Under this change the Administration Department personnel, to include but not limited to the City Clerk, Deputy Clerk, front desk, would report to the City Administrator for their respective department head. The Director of Finance would still retain the administration and implementation of the payroll system and associated reporting functions. A proposed organizational chart has been attached to this memo for reference. Attachment Attachment: Updated Organizational Chart AGENDA ITEMS –1G MEMORANDUM City Administrator Administration (City Administrator) Finance (Director of Finance) Public Works (Director of PW) Community Development (Director of Comm Dev) City Clerk Deputy City Clerk Customer Serv Spec Office Support Spec Communications Coord Accounting Analyst Accounting Clerk Public Works Sup. Public Works Maint. Staff Bldg . Official City Planner Bldg. Inspector DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Hiring and Termination Policy Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider City Council should provide feedback or direction on the attached policy regarding hiring and termination procedures. Background The City Council had previously given direction to bring forward a written policy regarding the hiring, discipline, and termination procedures for non-salaried (non-exempt), budgeted employees with the City of Arden Hills. The intent was to delegate the hiring, discipline, and termination authority to the City Administrator for day-to-day operations with the City Council ultimately approving the given actions. The written policy is attached to this memo, it has been reviewed by the City Attorney and is supported by the Personnel Committee. Attachment Attachment: Hiring and Termination Policy AGENDA ITEMS –1H MEMORANDUM CITY OF ARDEN HILLS HIRING AND TERMINATION AUTHORITY This document will establish a process for the hiring and termination of employees and the City Administrator, Personnel Committee, and City Council’s respective roles in that process. The City of Arden Hills is organized as a “Statutory A” City, meaning all personnel decisions must be ultimately approved by the City Council. To ensure efficiency in operations and timely decision making, the City Council hereby authorizes the City Administrator to undertake the selection process and make hiring decisions for non-salaried positions that have been budgeted for in the current budget year, and to implement employee evaluation, discipline and/or termination decisions for all aforementioned employees following employment. All decisions of the Administrator will be presented to the City Council for ratification, typically on the next regular meeting’s consent calendar. Regarding seasonal employment, the City Council shall grant authority to make personnel decisions regarding seasonal employment to the City Administrator for budgeted positions and will not need to seek City Council approval unless otherwise directed. All other personnel decision must be first brought forward to the Personnel Committee and the full City Council for direction and approvals. It is expected the City Administrator will keep the Personnel Committee informed on relevant personnel issues, and will defer decisions per the Personnel Committee ’s or City Council’s request. Purpose By instituting this procedure, it will help ensure City operations continue with fewer disruptions, and aid in making sure positions are filled in a timely manner. Furthermore, it outlines the roles of the City Administrator, Personnel Committee, and City Council in the hiring and termination process. Page 1 of 2 DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Matthew Bachler, City Planner Sue Polka, Public Works Director/City Engineer SUBJECT: Highway 96 and Lexington Avenue Gateway Sign Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Review conceptual plans for the Highway 96 and Lexington Avenue gateway sign and provide direction to staff. Background The adopted 2018-2022 Capital Improvement Plan includes $80,000 for gateway sign construction in 2018. At their work session on June 19, 2017, the City Council discussed using the funds budgeted in 2018 for a gateway sign at Highway 96 and Lexington Avenue. In August 2017, staff began working with WSB & Associates on a concept design plan and cost estimate for the gateway sign. Staff from WSB will be in attendance at the work session on January 16, 2018 to present the concept design plan. To date, gateway signs have been installed at the following locations: • County Road E2 at Cleveland Avenue • County Road D at Cleveland Avenue • County Road D at New Brighton Road/Lake Johanna Boulevard (Triangle Property) The approximate cost of the signs for these past projects has been $10,000. The project at the Triangle Property included additional landscaping and irrigation improvements, and staff has estimated the total cost of this project (including the sign) at between $30,000 and $45,000. Staff had anticipated the cost of the gateway sign at Highway 96 and Lexington Avenue to be more than these previous signs due to the larger scale of the project. AGENDA ITEM 1I MEMORANDUM Page 2 of 2 Discussion Location Staff evaluated the feasibility of locating a gateway sign in the northwest or southwest corner of the intersection of Lexington Avenue and Highway 96. The southwest corner was selected due to a significant grade change at the northwest corner from the road to a wetland. WSB completed a topographical survey of the area to locate curb lines, walkways, lights, utilities, trees, and right- of-way. The sign would be located in Ramsey County right-of-way and coordination with the County would be required. Concept Design WSB prepared a concept design for the gateway sign for the City Council to consider (Attachment B). Staff provided information on past design plans so that the sign is consistent in style with other monument signs. The plans took into consideration the following: • Travel speed • Size of sign/text for readability • Setbacks from roadway curb and walkways • Viewing orientation • Constructability The sign would be oriented towards the intersection to maximize visibility and would be setback approximately 30 feet from the public trail along Highway 96 and Lexington Avenue. The sign would have a curved face running 40 feet in length with a height of 10 feet. A perennial planting bed is shown in front of the sign and a mix of aspen and coniferous trees and shrubs behind the sign. Electrical service would be provided to illuminate the sign lettering. Cost Estimates WSB has provided an estimate of the construction cost in Attachment C. The estimate includes the cost of the sign itself, site preparation, landscaping, and electrical service. This subtotal cost is estimated at $193,150. With contingencies and construction administration included, the estimated total is $260,753. WSB has identified two potential cost reduction items: replacing the proposed stone veneer with simulated concrete stone, and reducing the length of the sign from 40 feet to 22 feet. The associated cost savings with these changes are included in Attachment C. Potential add-on items include sign wing walls (shown in the concept plan rendering), uplighting, and irrigation. These items are not included in the current estimated total. Attachments A. Aerial Map B. Concept Plan C. Cost Estimate This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. © Ramsey County Enterprise GIS 300.0 THIS MAP IS NOT TO BE USED FOR NAVIGATION NAD_1983_HARN_Adj_MN_Ramsey_Feet Feet300.00150.00 1,8001: ARDEN HILLS GATEWAY SIGN Concept 1 Maximum sign height = Approx. 10’ View looking south on Lexington Avenue Arden Hills, Minnesota 11/20/2017 | 010661-000 20 SCALE IN FEET 100 40 A A A’ A’ EXISTING UTILITY POLES WING WALL SHOREVIEW MONUMENT SIGN MONUMENT SIGN WING WALL PERENNIAL BED CONIFEROUS TREES SHRUBS QUAKING ASPEN TREES L E X I N G T O N A V E N HWY 96 K: \ 0 1 0 6 6 1 - 0 0 0 \ C a d \ E x h i b i t s \ 0 1 0 6 6 1 - 0 0 0 A r d e n H i l l s C o n c e p t s City Monument Sign Concept One Estimated Construction Cost By: SF Item Description QTY ESTIMATED COST 1 Mobilization 1 $ 9,200 2 Earthwork and erosion control 1 $ 25,500 3 40' long by 10' high masonry monument sign including central wall with veneer on front face only, sign lettering, lighting of lettering 1 $ 110,000 4 Electrical service 1 $ 15,000 5 Sodding 1500 $ 12,000 6 Concrete edging 215 $ 6,450 7 Tree, shrub and perennial planting 1 $ 15,000 Subtotal $ 193,150 Recommended Contingency (20%) $ 38,630 Estimated Design through Construction Administration (15%) $ 28,973 Estimated Total $ 260,753 RED.1 RED.2 ADD.1 Monument Sign Wing Walls with veneer on front face only 1 $ 63,000 ADD.2 Uplighting 1 $ 10,000 ADD.3 Irrigation System 1 $ 15,000 Note: WSB Project #010661-000 December 14th, 2017 This estimate is based on concept planning level design work for the purpose of budgeting. It should be anticipated that cost the estimate will need to be refined as the design progresses with greater detail. Base Items Potential Add-On Items Potential Cost Reduction Items Replace stone veneer with simulated stone pattern concrete wall resulting in a cost reduction of $16,000. Reduce size of sign wall to 22' long by 10' high and replace stone veneer with simulated stone pattern concrete wall resulting in a cost reduction of $46,600. 12/14/2017 K:\010661-000\Quantity\Preliminary\010661-000 City Monument Sign at Hwy 96 & Lexington Page 1 of 2 AGENDA ITEM – 1J MEMORANDUM DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Dawn Skelly SUBJECT: Communication Priorities Next Steps Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Review the suggested next steps of action for the Communication Priorities outlined at the 11/27/17 Council Special Work Session and provide feedback. Background At the Nov. 27 Council special work session, The City Council ranked several items of importance related to City communication and identified three priorities: 1. Admin Update 2. City Newsletter 3. Website redesign Ranking of communication priorities by Council Priority 1s 2s 3s Total Admin Update 5 0 0 5 Newsletter 4 1 0 6 Website redesign 3 2 0 7 Page 2 of 2 Additional rankings Community Engagement 0 3 2 12 Community Recognition 0 4 1 11 Media Relations Protocols 1 3 1 10 Digital Storytelling/notifying 0 0 5 15 Annual Report 0 2 3 13 Printed New Resident Guide 2 1 2 10 2018 Duties, not ranked Discussion Staff suggest the following next steps regarding the priorities: Admin Update and Council/Staff Communications 1. A larger discussion regarding Council communications to and from staff, as well as protocols for tracking resident questions of Councilmembers and staff follow-up will take place at the March retreat. 2. In the meantime, the Admin update will continue to be compiled and sent weekly. Arden Hills Notes 1. The newsletter will be produced in house beginning with the January-February 2018 issue. 2. The Communications Committee will serve in an advisory capacity, as needed and as volunteers emerge. 3. Additional discussion about plans for the City newsletter and communications committee will be held at a separate Council work session. City of Arden Hills Website 1. Clean up current website content. 2. Identify volunteers from web user audiences—residents, staff, business—to help plan and test changes in site navigation. 3. Decide on website features and brand elements and begin redesign with Civic Plus. 4. Develop web governance. 5. Launch new website by August 2019. Attachments None DATE: January 16, 2018 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Local Union No. 49 Labor Agreement Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider City Council should provide feedback or direction on the proposed Union Contract for 2018- 2019. Background The City Council pulled the Union Contract from the December Regular Council meeting for further discussion. The item has been brought to this work session (Attachment B), it should be noted that since the December meeting another Memorandum of Understanding (MOU) has been added to the contract to clarify a question regarding overtime. New language has been highlighted in yellow (for MOU’s only the header is highlighted) and deleted language has been red-lined. Please see below for overall changes to the contract: -2.0% COLA in 2018 and a 2.5% COLA in 2019 -Insurance premiums will be paid at 80% of the cost of the premium (same as non-union employees) or $992.00; prior contracts set a dollar amount, for 2017 this amount was $781.46 (69%) -Two MOU’s have been added to clarify the uniform expectations and the overtime pay rules Note, the budget impact of the new contract equates to a 20% increase over 2017, or $103,774. This is primarily due to the addition of the Public Works Working Foreman, which equates to $75,396 of the increase. Without the foreman, the increase equates to a 6% increase, or $28,376, for salary and benefits. Attachments Attachment A: Memo on Union Contract from the Regular City Council Meeting December 11, 2017 Attachment B: Redline Contract for Local Union No. 49 AGENDA ITEMS –1K MEMORANDUM CONSENT ITEM – 5C MEMORANDUM DATE: December 11, 2017 TO: Honorable Mayor and City Councilmembers FROM: William S. Joynes, Sr., City Administrator SUBJECT: Approval of 2018-2019 Union Contract Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A City Council Should Consider City Council should consider approving the 2018-2019 Labor Agreement with the City of Arden Hills and I.U.O.E Local 49. Background and Discussion City Staff entered into negotiations with the I.U.O.E Local 49 to negotiate a contract for our union employees. The contract covers calendar years 2018 and 2019. The union has voted and approved the attached agreement. The contract has been previously given to the Personnel Committee. The changes in the agreement include: -2.0% COLA in 2018 and a 2.5% COLA in 2019 -The City will contribute 80% of the premium costs for Union employees insurance coverage -An updated memo and uniform policy have been attached with a Memorandum of Understanding No other changes have been made to the contract. Attachments Attachment A: 2018-2019 Labor Agreement with the I.U.O.E Local 49 0 LABOR AGREEMENT BETWEEN THE CITY OF ARDEN HILLS AND INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL NO. 49 AFL-CIO JANUARY 1, 2018 THROUGH DECEMBER 31, 2019 0 TABLE OF CONTENTS ARTICLE NO. DESCRIPTION PAGE NO. I PURPOSE OF AGREEMENT ................................................................ 1 II RECOGNITION .................................................................................... 1 III UNION SECURITY ................................................................................ 1 IV EMPLOYER AUTHORITY ..................................................................... 2 V EMPLOYEE RIGHTS/ GRIEVANCE PROCEDURE .............................. 2 VI DEFINITIONS ....................................................................................... 4 VII SAVINGS CLAUSE .............................................................................. 5 VIII WORK SCHEDULES ............................................................................ 5 IX OVERTIME PAY ................................................................................... 6 X STANDBY AND CALL BACK ................................................................ 7 XI LEGAL DEFENSE ................................................................................ 7 XII RIGHT OF SUBCONTRACT ................................................................. 7 XIII DISCIPLINE AND DISCHARGE ........................................................... 8 XIV SENIORITY .......................................................................................... 8 XV LAY-OFF .................................................................................... 8 XVI PROBATIONARY PERIODS ................................................................ 8 XVII SAFETY ..................................................................................... 9 XVIII JOB POSTING ..................................................................................... 9 XIX PERSONAL TIME OFF CONVERSION ................................................ 9 XX FUNERAL LEAVE ................................................................................ 9 XXI PERSONAL TIME OFF (PTO) .............................................................. 9 XXII GROUP INSURANCE ........................................................................... 11 XXIII HOLIDAYS ........................................................................................... 11 XXIV UNIFORM ALLOWANCE ...................................................................... 12 XXV MILEAGE REIMBURSEMENT FOR TRAINING ................................... 12 XXVI INJURY ON DUTY ................................................................................ 12 XXVII UNUSED SICK LEAVE PAY ................................................................. 12 XXVIII WAIVER ..................................................................................... 13 XXIX CENTRAL PENSION FUND ................................................................. 13 XXX POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 14 XXXI DURATION 15 SIGNATURES ............................................................................ 15 APPENDIX A - WAGES AND CLASSIFICATIONS, LICENSE PAY INCENTIVE ..................................................................................... 16 COMMERCIAL DRIVERS LICENSE MOU……………………………………18 CELEBRATING ARDEN HILLS - MOU………………………………………..19 OVERTIME CLARIFICATION -MOU…………………………………………..20 UNIFORM POLICY- MOU………………………………………………… 21-24 1 LABOR AGREEMENT Between CITY OF ARDEN HILLS And INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL NO. 49 ARTICLE I — PURPOSE OF AGREEMENT THIS AGREEMENT is entered into between the CITY OF ARDEN HILLS, hereinafter called the EMPLOYER, and LOCAL NO. 49, INTERNATIONAL UNION OF OPERATING ENGINEERS, AFL-CIO, hereinafter called the UNION. The intent and purpose of this AGREEMENT is to 1.1 Establish certain hours, wages, and other conditions of employment; 1.2 Establish procedures for the resolution of disputes concerning this AGREEMENT'S interpretation and/or application; 1.3 Specify the full and complete understanding of the parties; and 1.4 Place in written form the parties' agreement upon terms and conditions of employment for the duration of the AGREEMENT. The EMPLOYER and the UNION, through this AGREEMENT, continue their dedication to the highest quality of public service. Both parties' recognize t his AGREEMENT as a pledge of this dedication. ARTICLE II — RECOGNITION The EMPLOYER recognizes the UNION as the exclusive representative for all job classifications included herein whose employment services exceed the lesser of fourteen (14) hours per week, or thirty-five percent (35%) of the normal work week, and more than sixty - seven (67) work days per year, excluding supervisory, confidential and all other employees. ARTICLE III — UNION SECURITY In recognition of the UNION as the exclusive representative, the EMPLOYER shall: 3.1 Deduct each payroll period an amount sufficient to provide the payment of dues established by the UNION from the wages of all employees authorizing in writing such deduction, and 3.2 Remit such deduction to the appropriate designated officer of the UNION. 2 3.3 Provide or designate a bulletin board, or a portion thereof, for posting of notices of UNION affairs. 3.4 The UNION may designate one employee from the bargaining unit to act as Steward, and shall inform the EMPLOYER in writing of such choice. 3.5 The UNION agrees to indemnify and hold the EMPLOYER harmless against any and all claims, suits, orders, or judgments brought or issued against the City as a result of any action taken or not taken by the City under the provisions of this Article. ARTICLE IV — EMPLOYER AUTHORITY 4.1 The UNION recognizes the prerogative of the EMPLOYER to operate and manage its affairs in all respects in accordance with existing and future laws and regulations of appropriate authorities including municipality personnel policies and work rules. 4.2 The prerogatives and authority which the EMPLOYER has not officially abridged, delegated or modified by the AGREEMENT are retained by the EMPLOYER. ARTICLE V — EMPLOYEE RIGHTS/ GRIEVANCE PROCEDURE 5.1 Definition of a Grievance A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this AGREEMENT. 5.2 Union Representatives The EMPLOYER will recognize representatives designated by the UNION as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The UNION shall notify the EMPLOYER in writing of the names of such UNION representatives and of their successors when so designated. 5.3 Processing of a Grievance It is recognized and accepted by the UNION and the EMPLOYER that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the employees and shall therefore be accomplished during normal working hours only when consistent with such employee duties and responsibilities. The aggrieved employee and the UNION representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the EMPLOYER during normal working hours, provided the employee and the UNION representative have notified and received approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work programs of the EMPLOYER. 5.4 Procedure Grievances, as defined by Section 5.1 shall be resolved in conformance with the following procedure: 3 Step 1. An employee claiming a violation concerning the interpretation or application of this AGREEMENT shall, within ten (10) calendar days after such alleged violation has occurred present such grievance to the employee's supervisor as designated by the EMPLOYER. The EMPLOYER-designated representative will discuss and give an answer to such Step 1 grievance within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2 shall be placed in writing setting forth the nature of the grievance, the facts on which it is based, the provision or provisions of the Agreement allegedly violated, and the remedy requested, and shall be appealed to Step 2 within ten (10) calendar days after the EMPLOYER-designated representative's final answer in Step 1. Any grievance not appealed in writing to Step 2 by the UNION within ten (10) calendar days shall be considered waived. Step 2. If appealed, the written grievance shall be presented by the UNION and discussed with the EMPLOYER-designated Step 2 representative. The EMPLOYER- designated representative shall give the UNION the EMPLOYER'S Step 2 answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten (10) calendar days following the EMPLOYER-designated representative's final Step 2 answer. Any grievance not appealed in writing to Step 3 by the UNION within ten (10) calendar days shall be considered waived. Step 3. If appealed, the written grievance shall be presented by th e UNION and discussed with the EMPLOYER-designated Step 3 representative. The EMPLOYER - designated representative shall give the UNION the EMPLOYER'S answer in writing within ten (10) calendar days after receipt of such Step 3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10) calendar days following the EMPLOYER-designated representative's final answer in Step 3. Any grievance not appealed in writing to Step 4 by the UNION within ten (10) calendar days shall be considered waived. Step 4. A grievance unresolved in Step 3 and appealed to Step 4 shall be submitted to the Minnesota Bureau of Mediation Services. A grievance not resolved in Step 4 may be appealed to Step 5 within ten (10) calendar days following the EMPLOYER'S final answer in Step 4. Any grievance not appealed in writing to Step 5 by the UNION within ten (10) calendar days shall be considered waived. Step 5. A grievance unresolved in Step 4 and appealed to Step 5 shall be submitted to arbitration. The arbitration proceeding shall be conducted by an arbitrator to be selected by mutual agreement of the EMPLOYER and the UNION within seven (7) calendar days after the request for such action. If the parties fail to mutually agree upon an arbitrator within the said seven (7) day period, either party may request the Director, Bureau of Mediation Services, to provide a panel of five (5) arbitrators. Both the EMPLOYER and the UNION shall have the right to strike two (2) names from panel. The party requesting arbitration sh all strike the first name, the other party shall then strike one (1) name and the process will be repeated and the remaining person shall be the arbitrator. The decision of the arbitrator shall be final and binding upon the parties. The arbitrator shall be requested to issue a decision within thirty (30) calendar days after the close of the record unless the parties mutually agree to an extension. 5.5 Arbitrator's Authority A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to or 4 subtract from the terms and conditions of this AGREEMENT. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the EMPLOYER and the UNION, and shall have no authority to make a decision on any other issue not so subm itted. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way, the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following the close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to any extension. The decision shall be binding on both the EMPLOYER and the UNION and shall be based solely on the arbitrator's interpretation or application of the express terms of this AGREEMENT and to the facts of the grievance presented. C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the EMPLOYER and the UNION, provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings, the cost shall be shared equally. 5.6 Waiver If a grievance is not presented within the time limits set forth above, it shall be considered "waived". If a grievance is not appealed to the next step within the specified time limit or agreed extension thereof, it shall be considered settled on the basis of the EMPLOYERS last answer. If the EMPLOYER does not answer a grievance or an appeal thereof within the specified time limits, the UNION may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual agreement of the EMPLOYER and the UNION. ARTICLE VI — DEFINITIONS 6.1 UNION The International Union of Operating Engineers, Local No. 49, AFL-CIO. 6.2 EMPLOYER The City of Arden Hills, Ramsey County. Minnesota, a Minnesota municipal corporation. 6.3 UNION MEMBER A member of the International Union of Operating Engineers, Local No. 49, AFL-CIO. 6.4 EMPLOYEE A member of the exclusively recognized bargaining unit. 6.5 BASE PAY RATE The employee's hourly pay rate exclusive of longevity or any other special allowance. 5 6.6 SENIORITY Length of continuous service in any of the job classifications covered by ARTICLE II RECOGNITION. Employees who are promoted from a job classification covered by this AGREEMENT and return to a job classification covered by this AGREEMENT shall have their seniority calculated on the length of service under this AGREEMENT for purposes of promotion, transfer, and lay off and total length of ser vice with the EMPLOYER for other benefits under this AGREEMENT. 6.7 STEWARD Employee whose responsibilities are limited to receiving complaints from its members of violations of the AGREEMENT, checking status of membership in the unit reporting safety problems and service as a communication link. 6.8 OVERTIME Work performed at the express authorization of the EMPLOYER in excess of either eight (8) hours within a twenty-four (24) hour period (except for shift changes) or more than forty (40) hours within a seven (7) day period. 6.9 HOLIDAY OVERTIME Employees required to work on an observed Holiday (refer to Article )0011) shall be compensated one and one-half (1.5) times their base hourly pay rate for each hour worked. Employees required to work on the actual holiday shall be compensated two (2) times their base hourly pay rate for each hour worked. 6.10 CALL BACK Return of an employee to a specified work site to perform assigned duties at the express authorization of the EMPLOYER at a time other than an assigned shift. An extension of or early report to an assigned shift is not a call back. ARTICLE VII — SAVINGS CLAUSE This AGREEMENT is subject to the laws of the United States, the State of Minnesota, and the City of Arden Hills In the event any provision of this AGREEMENT shall be held to be contrary to law by a court of competent jurisdiction from whose final judgment or decree no appeal has been taken within the time provided, such provision shall be void. All other provisions of this AGREEMENT shall continue in full force and effect. The voided provision may be renegotiated at the request of either party. ARTICLE VIII — WORK SCHEDULES 8.1 The EMPLOYER has the sole authority in the preparation of work schedules. The normal work day for an employee shall be eight (8) hours. The normal work week shall be forty (40) hours. 8.2 Service to the public may require the establishment of regular shifts for some employees on a daily, weekly, seasonal, or annual basis other than the normal work day or week. The EMPLOYER shall give at least two (2) working days advance notice to the employees affected by the establishment of work days different from the employee's normal work day or week. The EMPLOYER will first ask for volunteers to staff these changes to the normal work week or day. If there are not enough volunteers to fill the 6 shift change, the EMPLOYER will assign personnel to fill the shift based on seniority. Those employees with the least seniority will be assigned first until all shifts are assigned. 8.3 The employees shall be allowed one coffee break in the morning of thirty (30) minutes in duration inclusive of driving time to and from the Public Works building if required, and no coffee break in the afternoon. They shall be allowed a lunch period of thirty (30) minutes for which they will receive no pay. The thirty (30) minutes unpaid lunch break will exclude driving time to and from the work site to the City garage. This driving time will be limited to driving to and from the City garage and the work site(s); interim stops will not be perm itted. It is understood that the EMPLOYER or designated representative may require that the thirty (30) minutes unpaid lunch break be taken at the work site when warranted for reasons of business necessity. 8.4 In the event that work is required because of unusual circumstances such as (but not limited to) fire, flood, snow, sleet, or breakdown of municipal equipment or facilities, no advance notice need be given. It is not required that an employee working other than the normal work day be scheduled to work more than eight (8) hours; however, each employee has an obligation to work overtime or call backs if requested unless unusual circumstances prevent the employee from so working. 8.5 Service to the public may require the establishment of regular work weeks that schedule work on Saturdays and/or Sundays. 8.6 No involuntary time off without pay (temporary lay-off) will be implemented for regular employees while temporary or part-time employees are on the payroll, with the exception of the employee doing janitorial work at City Hall and the "On the Job Training" students. 8.7 In the event that the EMPLOYER initiates a temporary interruption in employment the EMPLOYER may provide employees in the affected unit an opportunity to voluntarily request leaves of absence without pay. Such temporary interruptions in employment shall not be considered a lay-off. While on unpaid leave of absence due to temporary interruption in employment the employee will continue to accrue seniority. ARTICLE IX — OVERTIME PAY 9.1 For the purposes of determining overtime pay, each day will be the twenty-four (24) hour period beginning at 12:01 a.m. and ending at midnight, while each week will be the seven (7) day period beginning on Saturday and ending on Friday. 9.2 Hours worked in excess of eight (8) within a twenty-four (24) hour period (except for shift changes) or more than forty (40) within a seven (7) day period will be compensated for at one and one-half (1-1/ 2) times the employee's regular base pay. All hours worked on an actual holiday will be compensated for at two (2) times the employee's regular base pay. (Refer to definitions found in Article VI, section 6.9) For purposes of this section, "hours worked" shall include hours designated as holiday, personal time off, or compensatory time-off. 9.3 At the discretion of the EMPLOYER, an employee may receive compensatory time off in 7 lieu of overtime pay at the rate of one and one-half (1-1/ 2) times the employee's regular base pay or two (2) times the employee's regular b ase pay for hours worked on an actual holiday, or be paid for overtime worked. 9.4 Maximum compensatory time accumulated shall not exceed forty (40) hours. If the maximum is exceeded, the employee will receive overtime pay to reduce the accumulation to the maximum allowed. ARTICLE X — STANDBY AND CALL BACK 10.1 The EMPLOYER will establish a seven (7) day rotating schedule of standby assignments. The employee on standby status will be available during that period for call back and the EMPLOYER will call that employee first should any call back be necessary. The employee will be paid one (1) hour at time and one-half the regular rate of pay for that employee for standby on weekdays. The employee will be paid two (2) hours at time and one-half the regular rate of pay for that employee for standby on weekends and observed holidays. 10.2 At the discretion of the EMPLOYER, an employee may receive compensatory time off in lieu of standby pay or be paid on the basis of one and one -half (1-1/ 2) hours compensatory time off for each twenty-four (24) hour period on standby status Monday through Friday; three (3) hours compensatory time off for each twenty -four (24) hour period on standby status on weekends and those dates recognized by the EMPLOYER as observed holidays. Such compensatory time accumulation shall be part of the maximum allowed under Section 9.4. 10.3 An employee called in for work at a time other than the employee's normal scheduled shift will be compensated for a minimum of two (2) hours' pay at one and one-half (1-1/2) times the employee's base pay rate, or two times the base rate on the actual holiday. Special weekend and holiday schedules for lift checking shall be treated as call backs. 10.4 Special weekend and holiday schedules for lift station checking shall be treated as a call back. ARTICLE XI — LEGAL DEFENSE 11.1 Employees involved in litigation because of negligence, ignorance of laws, non - observance of laws, or as a result of employee judgmental decision shall not receive legal defense by the City. 11.2 Except as provided in Section 11.1 hereof, any employee who is charged with a traffic violation, ordinance violation or criminal offense arising from acts performed within the scope of employment, when such act is performed in goo d faith and under direct order of the supervisor, shall be reimbursed for reasonable attorney's fees and court costs actually incurred by such employee in defending against such charge. ARTICLE XII — RIGHT OF SUBCONTRACT 12.1 Nothing contained in this AGREEMENT shall prohibit or restrict the right of the 8 EMPLOYER from subcontracting work performed by employees covered by this AGREEMENT. ARTICLE XIII — DISCIPLINE AND DISCHARGE 13.1 The EMPLOYER retains the sole right to discipline and discharge employees. ARTICLE XIV — SENIORITY 14.1 Seniority will be the determining criterion for transfers, promotions and lay -offs only when all other qualification factors are equal. ARTICLE XV — LAY-OFF 15.1 If a lay-off is deemed necessary by the EMPLOYER, the affected employees will be notified in writing at least four (4) weeks prior to the effective date. ARTICLE XVI — PROBATIONARY PERIODS 16.1 All newly hired or rehired employees will serve a minimum of six (6) months probati onary period. If the EMPLOYER extends the initial probationary period beyond six (6) months, the employee's base pay rate will not change until the employee has successfully completed the designated probationary period. The extended probationary period wil l not exceed three (3) months. 16.2 An employee will serve a probationary period in any job classification for which the employee has not served one previously. 16.3 At any time during the probationary period, the probationary employee may be discharged at the sole discretion of the EMPLOYER. 16.4 At any time during the probationary period, a promoted or reassigned employee may be demoted or reassigned to the employee's previous position at the sole discretion of the EMPLOYER. 16.5 At least three (3) weeks prior to the completion of the probationary period, the City Administrator/Clerk shall review the performance of the probationary employee, and notify the Council of the City Administrator/Clerk's recommendations. The matter shall be placed on the Council agenda for the next regular meeting, at which time the Council shall consider the recommendation and make a determination as to whether the employee shall be terminated at the end of the probationary period. If the employee is not to be continued beyond the end of the probationary period, the employee shall be so notified before the end of such period. 9 ARTICLE XVII — SAFETY 17.1 The EMPLOYER and the UNION agree to jointly promote safe and healthful working conditions, to cooperate in safety matters and to encourage employees to work in a safe manner. ARTICLE XVIII — JOB POSTING 18.1 The EMPLOYER and the UNION agree that permanent job vacancies within the designated bargaining unit shall be filled based on the concept of promotion from within provided that applicants: 18.11 have the necessary qualifications to meet the standards of the job vacancy; and 18.12 Have the ability to perform the duties and responsibilities of the job vacancy. 18.2 Employees filling a higher job class based on the provisions of this Article, shall be subject to the conditions of ARTICLE XV I, "PROBATIONARY PERIODS". 18.3 The EMPLOYER has the right of final decision in the selection of employees to fill posted jobs based on qualifications, abilities, and experience. 18.4 Job vacancies within the designated bargaining unit will be posted for five (5) work days so that members of the bargaining unit can be considered for such vacancies. ARTICLE XIX — PERSONAL TIME OFF CONVERSION 19.1 All employees hired before June 29, 2002, will convert their current sick leave accrued hours to Personal Time Off (PTO). The conversion will be calculated by adding current accrued sick leave and current accrued vacation and subtracting two hundred forty hours (240) as PTO. The remainder of the sick leave will be added to the "Bank". "Bank" is defined as accrued hours which may be used only when the employee qualifies under Short Term Disability, Long-Term Disability or when accrued PTO is exhausted. For allowed accruals over the maximum refer to Article XXI, section 21.3. ARTICLE XX — FUNERAL LEAVE 20.1 Each employee shall be entitled to three (3) paid days of funeral leave for a death in the immediate family of the employee. 20.2 "Immediate family" shall mean an employee's spouse, children, siblings, parents, grandparents, aunts, uncles, nephews nieces, in-laws or grandchildren. ARTICLE XXI — PERSONAL TIME OFF (PTO) 21.1 Personal Time Off (PTO) is authorized absence from duty. 10 Employees working an average of 40 hours per week on an annual basis are eligible for Personal Time Off. Employees may not use Personal Time Off until successful completion of their probationary period although Personal Time Off accumulates during this time. The following chart provides information regarding Personal Time Off. Years of service are calculated from the anniversary date of employment. PERSONAL TIME OFF SCHEDULE Completed years of Service Personal Time 0 — 5 Years 7 hours bi-weekly 6 10 Years 9 hours bi-weekly After 10 Years 10 hours bi-weekly Benefit year for Personal Time Off is March 1 t through February 28th. A maximum of 240 hours of Personal Time Off may be carried over from benefit year to benefit year. Carryover beyond 240 hours of Personal Time Off will only be made in accordance with Section 21.3 or under special circumstances with approval from the City A dministrator. Any employee leaving the service of the City in good standing will be compensated 100% for Personal Time Off up to 240 hours or amount allowed in Section 21.3 accrued to the day of separation provided said employee has served at least twelve (12) consecutive months prior to separation. Such pay for accumulated Personal Time Off will be at the same rate as the hourly rate of the employee's base salary. Personal Time Off may not be used to extend an employee's actual termination date. When a paid holiday falls on a working day during an employee's Personal Time Off, the day of the holiday will not be counted as a day of Personal Time Off. One (1) day of Personal Time Off shall equal eight (8) hours for full -time employees. 21.2 Personal Time Off may not be used by an employee until the end of the employees probationary period. 21.3 A regular employee cannot carry into the next year more accrued PTO benefits than forty (40) hours in excess of the maximum of two hundred forty (240) hours. In unusual or extenuating circumstances in order to accomplish the work programs of the EMPLOYER, the employee may be allowed to carry accrued, unused PTO beyond two-hundred eighty (280) hours into the next benefit year with the prior approval of the Department Head. 21.4 All requests for PTO of five (5) or more consecutive work days shall be submitted by April 1st of each year, and posted for five (5) consecutive work days. In case of any conflict for a preferred PTO period(s), the senior employee will be given preference. Any PTO requests of less than five (5) consecutive work days that are submitted more than four (4) weeks in advance shall be posted for three (3) work days. Any conflicts in scheduling shall be resolved by seniority. Any PTO requests which are not posted shall be considered on a "first come, first served" basis. 11 ARTICLE XXII — GROUP INSURANCE 22.1 Effective January 1, 2018, the EMPLOYER will contribute the same contribution as approved for non-union employees an amount equal to 80% of the current premium rate to the Operating Engineers, Local 49 Health and Welfare Administrators for Group Health and Dental Insurance. Employees may participate, at their own expense, in additional life, short -term, and long-term disability insurance as add-ons to City sponsored plans approved under the EMPLOYER'S current insurance provider. 22.2 In the event that an employee resigns, retires, or is otherwise separated from employment for any reason, the EMPLOYER will deduct from the employee's final paycheck the EMPLOYER-paid portion of the group insuranc e premium for the remainder of the quarter following the employee's date of separation from employment. 22.3 It is understood that the EMPLOYER'S only obligation is to pay the EMPLOYER contribution for group insurance premiums as agreed to herein. The EMPLOYER is not liable for claims as a result of a denial of insurance benefits by an insurance carrier. ARTICLE XXIII — HOLIDAYS 23.1 The EMPLOYER will provide twelve (12) paid holidays as follows: Holiday New Year’s Day Martin Luther King Day Presidents' Day Memorial Day Independence Day Labor Day Veterans Day Thanksgiving Day Day After Thanksgiving Day Christmas Eve Day Christmas Day New Year's Eve Day Observance Day January 1 Third Monday in January Third Monday in February Last Monday in May July 4 First Monday in September November 11 Fourth Thursday in November Fourth Friday in November December 24 December 25 December 31 12 23.2 In the event that New Year's Day, Independence Day, Veteran's Day, or Christmas Day fall on a Sunday, the following Monday shall be a paid holiday. If any of the preceding holidays fall on a Saturday, the preceding Friday shall be a paid holiday. 23.3 Employees required to work on a designated holiday shall be comp ensated one and one-half (1.5) times their base hourly pay rate for each hour worked, plus Holiday pay. Employees required to work on the actual holiday shall be compensated two (2) times their base hourly pay rate for each hour worked plus holiday pay if the actual holiday qualifies for holiday pay in section 23 1. ARTICLE XXIV — UNIFORM ALLOWANCE 24.1 The EMPLOYER shall provide each employee with an annual uniform allowance of two hundred seventy-five dollars ($275). 24.2 Employees shall purchase uniforms and jackets from the same vendor semi-annually not to exceed the maximum allowance. 24.3 Receipts are required for all items purchased. 24.4 Please see attached Uniform MOU for additional guidance. ARTICLE XXV — MILEAGE REIMBURSEMENT FOR TRAINING 25.1 An employee must have the prior approval of the Public Works Superintendent to attend training to enhance job-related knowledge and skills. 25.2 An employee using a privately owned vehicle to travel to and from the locatio n of approved training will receive mileage reimbursement at the federal rate which is adopted by the EMPLOYER annually. ARTICLE XXVI — INJURY ON DUTY 26.1 If an injury on duty results in an employee missing work, the EMPLOYER will pay the employee's regular base pay rate. The amount paid by the Worker's Compensation Insurance will be turned over by the employee to the EMPLOYER. 26.2 This injury on duty benefit would be provided up to a maximum of twenty-six (26) days. 26.3 No Personal Time Off shall be charged for payment of this benefit ARTICLE XXVII — UNUSED SICK LEAVE PAY 27.1 Regular full-time employees who have completed ten (10) or more years of continuous service with the EMPLOYER and who leave in good standing, will receive 33-1/3% of unused, accumulated sick leave upon their separation. Regular full-time employees who 13 have completed twenty (20) or more years of continuous service with the EMPLOYER and who leave in good standing, will receive 50% of unused, accumulat ed sick leave upon their separation. To qualify for this benefit an employee must have an established sick leave bank resulting from the conversion to the PTO program. (Refer to Article XXIX section 19.1.) Any benefit paid under this Article shall be paid into the employee's Post- Employment Health Care Savings Plan (Refer to Article XXX (section 30.4). ARTICLE XXVIII — WAIVER 28.1 Any and all prior agreements, resolutions, practices, policies, rules and regulations regarding terms and conditions of employm ent, to the extent inconsistent with the provisions of this AGREEMENT, are hereby superseded. 28.2 The parties mutually acknowledge that during the negotiations which resulted in this AGREEMENT, each had the unlimited right and opportunity to make demands and proposals with respect to any term or condition of employment not removed by law from bargaining. All agreements and understandings arrived at by the parties are set forth in writing in this AGREEMENT for the stipulated duration of this AGREEMENT. The EMPLOYER and the UNION each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this AGREEMENT, or with respect to any term or condition of employment not specifically referred to or covered by this AGREEMENT, even though such terms or conditions may not have been within the knowledge or contemplation of either or both parties at the time this contract was negotiated or executed. ARTICLE XXIX — CENTRAL PENSION FUND The EMPLOYER and the UNION agree that an amount designated herein that would otherwise be paid in salary or wages will be contributed instead to the Central Pension Fund (CPF) as pretax employer contributions. A pension contrib ution of ninety-six cents ($0.96) per hour will be made for each employee, for a maximum of two thousand eighty hours (2080) per calendar year. The hourly contribution rate will be applied to every hour compensated (ie. Hours worked, PTO, and holidays) except for overtime hours worked. The EMPLOYER shall deduct seventy- six dollars and eighty cents ($76.80) every eight (80) hour pay period. The EMPLOYER shall pay this contribution directly to the IUOE Central Pension Fund. The UNION agrees to indemnify and hold the EMPLOYER, its Officers, Agents, and employees harmless against any claims, suits, orders or judgments, brought against the EMPLOYER as a result of any action taken or not taken by the EMPLOYER on the specific provisions of this Article. This "hold harmless" clause does not hold the EMPLOYER harmless for failing to transfer the agreed contributions to the IUOE Central Pension Fund. It is agreed that for purposes of determining future wage rates, the EMPLOYER shall first restore the amount of the wage reduction, which is currently the CPF contribution rate of $0.96 per hour, then apply the applicable wage multiplier, then reduce the revised wage by the CPF contribution rate. It is further agreed that for purposes of calculating overtime compensation th e EMPLOYER shall first restore the amount of the wage reduction ($0.96/ hr.) then apply the applicable 1.5 or 2.0 wage multiplier required under the Fair Labor Standards Act and the collective bargaining agreement, then pay the resulting amount for overtim e worked. 14 The contribution of $0.96 per hour prevents an employee's annual CPF contributions from exceeding $2,000.00 in a year and therefore complies with limitations set forth under Minnesota Statute § 356.24, sub. 1(9) as amended in 2002. The CPF Plan of Benefits and the Agreement and Declaration of Trust will serve as the governing documents. The CPF is a supplemental Pension Fund authorized by Minnesota Statutes, 356.24, subdivision 1(9). ARTICLE XXX — POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 30.1 The City of Arden Hills Local 49ers employees are eligible to participate in the Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minnesota Statutes, section 352.98 (Minn. Supp. 2001) and as outlined in the Minnesota State Retirement System's Trust and Plan Documents. 30.2 All funds collected by the EMPLOYER (City of Arden Hills) on the behalf of the employee (Public Works Local 49ers) will be deposited into the employee's Post Employment Health Care Savings Plan Account through Minnesota State Retirement System. 30.3 All employees with 0 years to 5 years of service shall contribute 2% of pay. All employees with 5 or more years of service shall contribute 4% of pay. 30.4 The EMPLOYER has agreed to contribute payroll deductions to th e Post Employment Health Care Savings Plan (HCSP) with Minnesota State Retirement Systems as described below: A. All City of Arden Hills Public Works Local 49ers employees who are eligible for the unused sick leave severance payout, outlined in Article XXV II section 27.1 of the contract, will contribute to the Post Employment Health Care Savings Plan as described below:  All employees who have an eligible sick leave balance upon separation shall have 100% of those eligible hours converted into cash, and the dollars shall be deposited into their Post-Employment Health Care Savings Account (HCSP) on their final check. B. All City of Arden Hills Public Works Local 49ers employees who are eligible for the unused Personal Time Off (PTO) severance payout, outlined in Article XXI section 21 1 of the contract will contribute to the Post Employment Health Care Savings Plan as described below:  All employees who have an eligible vacation (PTO) leave balance upon leaving the City of Arden Hills shall have 100% of those hours converted into cash and deposited into their Post-Employment Health Care Savings Account (HCSP) on their final check. C. In the event of the employees death, any payments owed to this employee by the City of Arden Hills, may not be contributed into the Post -Employment Health Care Savings Account (HCSP). Upon death of the employee, all payments owed to this employee will be paid to the employees beneficiaries. 15 ARTICLE XXXI — DURATION This AGREEMENT shall be effective as of the date of its signing and shall remain in full force and effect January 1, 2018 through December 31, 2019. It shall continue in full force and effect from year-to-year, unless terminated or renegotiated in the manner provided by the Public Employment Labor Relations Act of 1971 as amended. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this ______ day of ________________, 2017. CITY OF ARDEN HILLS INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL No. 49 By: ______________________________ By:____________________________________ Mayor Business Manager/ Financial Secretary By: ______________________________ By: ____________________________________ City Administrator Area Business Representative By: ____________________________________ Union Steward 16 Appendix A WAGES AND CLASSIFICATIONS A. Effective at the signing of this contract, the following wage schedule will be in effect for the Public Works Maintenance Worker, effective January 1 of each year. 2016 2017 Start 18.97 19.49 Six (6) Months 20.25 20.81 One (1) Year 21.54 22.13 Two (2) Years 24.10 24.76 Three (3) Years 26.63 27.36 2018 2019 Start $ 19.88 20.38 Six (6) Months $ 21.23 21.76 One (1) Year $ 22.57 23.13 Two (2) Years $ 25.25 25.88 Three (3) Years $ 27.91 28.61 Wages for 2008 included a one-time $0.48 hour market adjustment. In 2005 wages included a one-time roll-in of $0.20/hour in recognition of the requirement for a Class D Systems Operator's License, and a Class SD Wastewater Systems Operator's License or a Class SC Wastewater Systems Operator's License. B. New Employees B-1 A newly-hired employee shall be paid a starting base pay rate as determined by the EMPLOYER. This starting base pay rate must be equal to at least seventy percent (70%) of the top base pay rate for the Public Works Maintenance Worker Classification. B-2 The base pay rate of a newly-hired employee who has successfully completed the probationary period shall be increased at the discretion of the EMPLOYER to at least seventy-five percent (75%) of the top base pay rate for the Public Works Maintenance Worker Classification. B-3 After the first year of employment, the employee's base pay rate shall be increased at the discretion of the EMPLOYER to a base pay rate which is equal to at least eighty percent (80%) of the top base pay rate for the Public Works Maintenance Worker Classification. 17 B-4 After the second y ear of employment, the employee's base pay rate shall be increased at the discretion of the EMPLOYER to a base pay rate which is equal to at least ninety percent (90%) of the top base pay rate for the Public Works Maintenance Worker Classification. B-5 The new base pay rates provided under B -2, B-3 and B-4 shall not exceed base pay rates paid to current regular employees in the Public Works Maintenance Worker Classification. B-6 After the third year of employment the employee's base pay rate shall be increased to the top base pay for the Public Works Maintenance Worker Classification. C. Employees employed by the EMPLOYER on a temporary basis for no more than nine hundred-sixty hours (960) per calendar year, either in a full -time or part-time capacity, will be paid at an hourly rate as determined by the EMPLOYER for the term of their employment. Such employees will not be eligible for any rights or benefits under this AGREEMENT, including Article V, "Employee Rights/ Grievance Procedure". D. License Pay Incentive Any employee who has or completes training for and receives from the Minnesota Department of Transportation Certification as a Minnesota Commercial Vehicle Inspector, or receives from the State of Minnesota Certification as both a Tree and Weed Inspector shall receive an hourly incentive of $0.10/hour to their base wage. 18 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF ARDEN HILLS, MN AND I.U.O.E., LOCAL 49 Commercial Driver's License The purpose of this Memorandum of Understanding is to assist both Labor and Management in applying the new rules for Commercial Drivers License (CDL) holders. The following conditions will apply to no more than one (1) Public Works employee with fifteen (15) years of service or more in the Local 49 Bargaining Unit at any given time, and allows only one revocation per person. 1. If an employee temporarily loses his/her driver's license and CDL, the employee must obtain a valid work permit that allows them to drive non -commercial vehicles during work hours. An employee that has no valid license may be required to use paid leave until they are able to obtain a valid work permit. An employee who does not obtain a drivers license within ninety (90) days will be terminated. 2. In the opinion of the Depa rtment Head, there must be sufficient bargaining unit work that does not require a CDL and the impacted employee shall possess the skills and abilities to successfully undertake those tasks. 3. If there is sufficient work, the Employer will accommodate an emp loyee who temporarily loses his/her CDL license for a period not to exceed one (1) year. The one (1) year period begins as of the date of his/her license revocation. If the employee does not have their CDL reinstated within one (1) year, the employee will be terminated. 4. If the temporary loss of a driver's license is the result of an alcohol -related offense, the employee will be required to comply with the recommendations of a Substance Abuse Professional. Proof of compliance with the Substance Abuse Professional recommendations will be provided to the Employer. 5. This agreement applies to driving violations outside the work place. This agreement does not include positive test results from the Department of Transportation's required random testing. 6. A twenty-five percent (25%) decrease in pay will begin as of the revocation date. Any lost wages during the revocation of the employee's drivers license/CDL will not be reimbursed regardless of the outcome of any subsequent contesting of the revocation. This Memorandum of Understanding will remain in effect from January 1, 2018 through December 31, 2019. As of January 1, 2020 the Letter may be eliminated at the request of either party. CITY OF ARDEN HILLS INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL No. 49 By: ______________________________ By: ____________________________________ By: ______________________________ By: ____________________________________ By: ____________________________________ Dated ________________ 19 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF ARDEN HILLS, MN AND I.U.O.E., LOCAL 49 Celebrating Arden Hills WHEREAS, every year the City of Arden Hills holds its annual City festival, "Celebrating Arden Hills". and WHEREAS, it is necessary for the success of this event that City employees work a shift during the event; and WHEREAS, the Public Works employees of the City of Arden Hills are required to work at least one shift a this annual event, which is held on a Saturday in September each year; and WHEREAS, the City desires to clearly state the work requirements as they relate to this event. THEREFORE, this Memorandum of Understanding is written to summarize the City and bargaining unit's expectations regarding the "Celebrating Arden Hills" event:  All employees are required to work at least one assigned shift during the festival;  In return for time worked, to the extent that it is outside normal work hours, the employees may be compensated for time worked at o One and one -half times the normal rate of pay; or o Accrual of compensatory time at one and one -half times the normal rate of pay; or o The group as a whole may desire to arrange a set amount of time off as a group, as agreed upon between the union and the City Administrator. This Memorandum of Understanding: will remain in effect from January 1, 2018 through December 31. 2019 As of January 1, 2020 the Letter may be eliminated at the request of either party. MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF ARDEN HILLS, MN AND I.U.O.E., LOCAL 49 Uniform Agreement CITY OF ARDEN HILLS INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL No. 49 By: ______________________________ By: ______________________________ By: ______________________________ By: ______________________________ By: ______________________________ Dated _____________________________ 20 CITY OF ARDEN HILLS, MN AND I.U.O.E., LOCAL 49 Overtime Clarification WHEREAS, the Labor Agreement between I.U.O.E., Local 49 and the City of Arden Hills stipulates when the EMPLOYER will pay overtime, THEREFORE, this Memorandum of Understanding is written to summarize the City and bargaining unit’s expectations regarding overtime pay: o Depending on the schedule set by the EMPLOYER, bargaining unit EMPLOYEES will be eligible for overtime pay after eight hours worked on a normally scheduled day, or forty hours in a work week; however, during times when the regularly scheduled work day goes beyond eight hours, such as summer hours, the employee will be paid overtime during hours worked outside of the set schedule. For exa mple, during summer hours an EMPLOYEE is expected to work between 6:30 am and 4:00 pm, the EMPLOYEE would be eligible for overtime outside of those hours assuming the EMPLOYEE had “hours worked” during t he scheduled hours. This Memorandum of Understanding will remain in effect from January 1, 2018 through December 31, 2019. FOR CITY OF ARDEN HILLS FOR IUOE, LOCAL NO. 49 By ________________________ By __________________________ By ________________________ By __________________________ By ________________________ By __________________________ Dated ______________________ Dated ________________________ 21 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF ARDEN HILLS, MN AND I.U.O.E., LOCAL 49 Uniform Agreement WHEREAS, the Labor Agreement between I.U.O.E., Local 49 and the City of Arden Hills stipulates the EMPLOYER shall provide a uniform allowance, THEREFORE, this Memorandum of Understanding is written to summarize the City and bargaining unit’s expectations regarding the Uniform purchasing expectations: o The City and bargaining unit employees shall follow the attached uniform agreement updated June 1, 2017. This Memorandum of Understanding will remain in effect from January 1, 2018 through December 31, 2019. FOR CITY OF ARDEN HILLS FOR IUOE, LOCAL NO. 49 By ________________________ By __________________________ By ________________________ By __________________________ By ________________________ By __________________________ Dated ___________________ Dated ________________________ 22 Uniform Memo June 1, 2017 Scope This memo applies to both full time and seasonal Public Works employees. Purpose As a City employee it is essential to establish a professional image both to the public and other agencies. The purpose of this memo is to create uniformity and promote a high level of pride within the department. This memo will address the mandatory dress code adopted by the city to be enforced and executed by the public works superintendent. In addition, there are OSHA and safety guidelines that are mandatory and must be followed by Public Works employees. Purpose It is the intention of this memo to create an expectation of excellence and professionalism. Taking into account safety concerns and vendor availability, the public works superintendent may deviate from the following guidelines at his/her discretion. 1. Employees are required to wear approved city logoed garments on the most outer layer. 2. To maintain a professional image, clothing shall remain free of rips, excessive stains, and modifications of any type. 3. In the event a city logoed shirt or sweatshirt becomes excessively worn or damaged from on the job duties, a replacement will be provided at the discretion of the superintendent. 4. The superintendent will maintain an inventory of on-hand clothing stock. 5. Employees are required to wear a light tan or dark brown cargo style work pant. During the summer months shorts are permitted in tan or dark brown (excludes assignments requiring pants due to safety). Shorts are required to fall just above the knee and shall not be excessively small or large fitting. 6. All Public works employees are expected to follow MN OSHA safety standards for reflectivity on the job regardless of extreme temperatures. 23 7. Steel or composite toe work boots are provided by the city and required while on the job. Purchasing will be done through a vendor chosen by the superintendent. Purchasing The City provides each full time employee with up to $175 safety boot allowance (annually), and $275 reimbursement (annually) for City-approved clothing (see approved list below). In addition the table below, the column “Union Staff” indicates the city’s annual purchase of logoed clothing for full-time employees. Seasonal employee annual allowance includes up to $125 for safety boots, in addition to the “seasonal staff” column from the table below for logoed clothing (no clothing allowance). Safety vests will be provided when the current vest is no longer compliant with MN OSHA safety guidelines. All allowances listed above do not carry over from year to year, and are for Items approved by the public works superintendent or within this memo. The table below breaks down what the city will contribute to the uniform purchase per employee. This is in addition to the above boot allowance and the full time employee city approved clothing allowance. Quantities listed below are purchased annually unless otherwise indicated and are subject to availability. Full time employees will have the opportunity to purchase a larger quantity when an order is placed up to twice a year, using personal clothing allowance funds. Logoed Clothing Description Union Staff Quantity Seasonal Staff Quantity Logoed safety t shirt Or logoed reflective t shirt 7 or 4 5 Logoed reflective safety pull over sweatshirt 2 1 Logoed mesh safety vest 1 1 Logoed/ named 3-in-1 reflective safety jacket 1 (every other year) Initial cost $97 0 Logoed knit winter cap 1 0 Logoed baseball cap 2 1 Reflective safety flagger/rain suit 1 (every third year) Initial cost $119 0 (provide standard rain suit) Total city contribution per employee *Based on current pricing $441 (1st year) (future avg. $352 annually) $104.50 (annually) Clothing Allowance Full time public works employees are permitted to use additional funds totaling $275 annually from a personal clothing allowance (per current union contract). The employee 24 may choose the vendor for purchasing from their personal clothing allowance and must submit an itemized receipt for reimbursement. In addition to the list below, employees may use their clothing allowance funds to order from the cities vendor additional logoed garments from the table above. In the event any city issued garments are no longer compliant with this memo the employee can use funds from their clothing allowance for replacement garments. This excludes OSHA required reflective safety vests that fall under the requirements set by MN OSHA. In the event a reflective safety vest is no longer compliant a new vest will be issued to the employee. These funds will come from the safety budget. The following is an approved list of clothing allowance items. The superintendent may in special circumstances, approve items on a case by case basis. Solely based on job related needs. -Tan or dark brown cargo style work pants. -Tan or dark brown work shorts. -Work and driving gloves. -Winter outer wear, Insulated pants/bibs, insulated hats, insulated work gloves, insulated boots, sweatshirts, and insulated work jackets. -Work socks. -Steel toe safety boots -Rubber boots. -Hip boots/ waders -Rain jacket and pants. -ice cleats. Safety Equipment The City of Arden Hills and the public works department support a safe work place. There are a variety of job related hazards employees encounter. The public works superintendent shall purchase safety equipment and keep an annual safety equipment inventory for each employee. Employees are expected to report any deficiencies to their personal protective equi pment (PPE) to the superintendent. Employees are required to use their PPE while on the job per current MN OSHA standards, and the city shall provide the training to all department employees to understand such standards. 25