Loading...
HomeMy WebLinkAbout12-11-2018 Council PacketCITY OF OAK PARK HEIGHTS TUESDAY, DECEMBER 11, 2018 CITY COUNCIL MEETING AGENDA 6:00 P.M. AT CITY HALL 6:00 p.m. L Call to Order/Pledge of Allegiance/Approval of Agenda Estimated times 6:05 p.m. IL Council/Staff Reports A. Mayor McComber B. Councilmember Dougherty C. Councilmember Liljegren D. Councilmember Runk E. Councilmember Swenson F. Staff • Recycling Award (pg. 3) 6:05 p.m. III. Visitors/Public Comment This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda (Please limit comments to 3 minutes in length). 6:10 p.m. IV. Consent Agenda (Roll Call Vote) A. Approve Bills & Investments B. Approve City Council Worksession Notes — November 27, 2018 (pg. 5) C. Approve City Council Minutes — November 27, 2018 (pg. 7) D. Adopt Resolution Designating the Polling Location for 2019 in the City of Oak Park Heights in the Event of a Special Election (pg. 11) E. Adopt Resolution for 2019 Liquor, Tobacco, and Amusement License Renewals (pg. 13) F. Approve License to Sell Tobacco, Tobacco Products, or Tobacco Related Devices for LRS Enterprises Inc. (pg. 17) G. Approve 2019 Taxi Cab Licenses for F.D.S. Enterprises dba A. Taxi (pg. 19) H. Approve Resolution for Certification of Delinquent Utilities (pg. 21) L Approve Resolution Designating 2019 Checking and Bank Depositories (pg. 23) J. Approve Letter of Understanding for the Animal Humane Society - 2019 (pg. 25) K. Approve Proclamation Supporting National School Choice Week (pg. 31) L. Approve Salary Adjustment for Exempt Employees (pg. 39) M. Adopt Amended CC 102 Master Fee Schedule (pg. 41) N. Approve Allocation of General Fund Unassigned Balance and Non -Budgeted Fund Transfers (pg. 45) O. Approve Policy Relating to Placement of Civic Organization Signage (pg. 47) 6:15 p.m. V. Public Hearings A. Truth in Taxation — 2019 Budget Presentation (pg. 49) B. Consider Special Home Occupation Permit — 14860 Upper 55th Street: Stillwater Premier Bengals (pg. 57) Please mute or silence any cell phones, computers or other devices during meeting — Thank You. Page 1 of 158 6:25 p.m. VI. Old Business 6:25 p.m. VII. New Business A. 2019 Water and Sewer Rate Study (pg. 101) B. Resolution Approving the 2019 Budget (pg. 137) C. Resolution Approving the 2019 Tax Levy (pg. 157) 6:35 p.m. VIII. Other Council Items or Announcements 6:35 p.m. IX. Adjourn City Council Agenda December 11, 2018 Page 2 Page 2 of 158 IPA Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Recycling Award Time Req. 0 Agenda Placement Staff Reports Originating Department/Requestor Administration/Jennifer Pinski Requester's Signature Qr, Action Requested _ Receive Information Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 3 of 158 November 23, 2018 John Taylor 5866 Penrose Avenue North Oak Park Heights, MN 55082 Dear Mr. Taylor: Thank you for participating in the City's recycling program. As an incentive to recycle and to increase fire prevention awareness, the City rewards two residents each month with their choice of an award of $25.00 or a fire extinguisher and/or smoke detector(s). Your residence was checked on Thursday, December 6, to determine if you had your recycling bin out with your regular garbage. Your recycling was out and ready for collection; therefore, you are one of this month's winners. Please contact me via phone at 439-4439 or email at jpinski@cityofoakparkheights.com to let me know your choice of award. On behalf of the Oak Park Heights City Council, thank you for participating in the City's recycling program. Congratulations! Jennifer Pinski City Clerk Page 4 of 158 ArA Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Approve City Council Worksession Notes — November 27, 2018 Time Req. Agenda Placement Consent Originating Department/Requestor dministration/Jennifer Pinski Requester's Action Requested Approve Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 5 of 158 [a CITY OF OAK PARK HEIGHTS CITY COUNCIL WORKSESSION NOTES TUESDAY, NOVEMBER 27, 2018 Present: Mayor McComber, Councilmembers Dougherty, Liljegren, and Runk; City Administrator Johnson; City Attorney Sandstrom; City Engineer Mann; Finance Director Caruso; and City Clerk Pinski. Also Present: Councilmember-Elect Johnson. 1. Call to Order: Mayor McComber called the meeting to order at 5:00 p.m. 2. 2019 Street Reconstruction: City Administrator Johnson reviewed his memo that was included in the worksession packet for that evening and a spreadsheet on assessments. Councilmember Dougherty said he did not want to spend a large sum of money if the County was going to acquire land. He suggested the City Council revisit the issue in a year once the County had an idea what they were going to do with Manning and Highway 36. He said the City should go ahead with striping at 581 and Stillwater Boulevard. City Engineer Mann said he asked Washington County if they would know by next August, and they said they would. Mayor McComber said the shoulders should be enhanced at that intersection and the striping done in 2019 to have a third lane. Mann said he would Iook into the most minimalist approach and bring it back at the next City Council meeting. McComber said the assessment policy should be consistent with what it had been in the past. No action was taken. 3. Adjourn: The meeting was adjourned at 5:45 p.m. Page 6 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Approve City Council Minutes — November 27, 2018 Time Req. 0 _ Agenda Placement Consent Originating Department/Requestor Anistration/Jennifer Pinski Requester's Signature Action Requested Approve Background/Justification (PIease indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 7 of 158 CITY OF OAK PARK HEIGHTS TUESDAY, NOVEMBER 27, 2018 CITY COUNCIL MEETING MINUTES I. Call to Order/Pledge of Allegiance/Approval of Agenda: Mayor McComber called the meeting to order at 6:00 p.m. Present: Councilmembers Dougherty, Liljegren, and Runk. Staff present: City Administrator Johnson, City Clerk Pinski, City Attorney Sandstrom, and City Engineer Mann. Absent: Councilmember Swenson and City Planner Richards. Councilmember Runk, seconded by Councilmember Liljegren, moved to approve the Agenda. Carried 4-0. IL Council/Staff Reports: A. Mayor McComber: She reported that she attended a meeting at the Stillwater Prison and the League of Minnesota Cities/Metro Cities meeting. She announced a ribbon cutting at Oak Ridge Place on November 28 and a ribbon cutting at Bell Bank on December 7. She thanked the Bayport Fire Department for bringing Santa through the City on November 23. B. Councilmember Dougherty: No report. C. Councilmember Liljegren: He reported that the Parks Commission met on November 19 at 6:00 p.m. D. Councilmember Runk: No report. E. Councilmember Swenson: Absent. F. Staff: City Clerk Pinski reported that Manila and Jacqueline Shaver of 13751 55th Street North were chosen as the recycling award winner. III. Visitors/Public Comment: IV. Consent Agenda: A. Approve Bills & Investments B. Approve City Council Worksession Notes — November 13, 2018 C. Approve City Council Minutes — November 13, 2018 D. Approve 2019 Area Charge for Connection to Water, Sewer, and Storm Sewer Systems E. Approve Resolution Thanking Councilmember Mark Swenson for his Approve Change Order #2 — Palmer Station & Utility Improvements Relating to Time Extension F. Appoint Mayor McComber and Councilmember Liljegren to the Joint Airport (Commission) Zoning Board Page 8 of 158 City Council Meeting Minutes November 27, 2018 Page 2 of 3 Councilmember Runk, seconded by Councilmember Dougherty, moved to approve the Consent Agenda. Roll call vote taken. Carried 4-0. V. Ptzblix Ilearinac: None VI. (ilii Rusines$: A. No Wake Zone Request — Sunnyside Marina: City Administrator Johnson reported that the City received responses from the Washington County Sheriff's Department and the Minnesota DNR regarding enforcement on the St. Croix River. He said he provided a communication to those who attended the Public Hearing at Oak Park Heights City Hall and provided their email address. Cheri Dexter and Kyle Schenck of the Washington County Sheriffs Department were present at the meeting. Councilmember Runk asked if a no wake zone was enforceable. Sergeant Schenck responded that it was enforceable, however, it was difficult to prove in court. He said he pulled records of any medicals or damage to property at Sunnyside Marina back to May 1 and there were none. Councilmember Dougherty presented a draft of a revised Resolution. Councilmember Dougherty, seconded by Mayor McComber, moved to approve the revised Resolution. Roll call vote taken. Failed 2 — 2, Liljegren and Runk opposed. Councilmember Liljegren, seconded by Councilmember Runk, moved to approve the original Resolution. Roll call vote taken. Failed 2 — 2, McComber and Dougherty opposed. Councilmember Dougherty, seconded by Mayor McComber, moved to bring the item back to the first meeting in 2019. Failed 2 — 2, Liljegren and Runk opposed. B. Feasibility Study 58th Street and Memorial Ave.: City Engineer Mann discussed the Feasibility Study that was brought to the City Council. He said that in light of the discussion with the County and the future work they may do, the City Council discussed waiting until the County knew what they would be doing. He said the City Council looked at lane configurations and the part of the Feasibility Study for a third lane, and they suggested the City Engineer come back to the next City Council meeting with a cost estimate for reconfiguring the intersection of 58" Street at Stillwater Boulevard. Councilmember Dougherty, seconded by Councilmember Liljegren, moved to approve the Feasibility Study as presented. Carried 4-0. Page 9 of 158 City Council Meeting Minutes November 27, 2018 Page 3 of 3 VII. New Business: VIII. Other Council Items or Announcements: None IX. Adiourn: Councilmember Liljegren, seconded by Councilmember Runk, moved to adjourn at 6:19 p.m. Carried 4-0. Respectfully submitted, Jennifer Pinski City Clerk Approved as to Content and Form, Mary McComber Mayor Page 10 of 158 Meeting Date }.... Oak Park Heights Request for Council Action December 11, 2018 Agenda Item Adopt Resolution Designating the Polling Location for 2019 in the City of Oak Park Heights in the Event of a Special Election Time Req. 0 Agenda Placement Consent Originating Department/Requestor Requester's Signature Action Requested Approve ennifer Pinski Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 11 of 158 RESOLUTION 18-12-43 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION DESIGNATING THE POLLING LOCATION FOR 2019 ELECTIONS IN THE CITY OF OAK PARK HEIGHTS WHEREAS, there was a change made during the 2017 legislative session to State Statute 204.16 which discusses polling place designations; and WHEREAS, state law now requires municipalities to designate precinct polling places for all elections for the year by December 31 of the prior year; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Oak Park Heights hereby designates one precinct polling location for 2019 elections in the City of Oak Park Heights at the following location: Oak Park Heights City Hall, 14168 Oak Park Boulevard North Passed by the City Council of Oak Park Heights this 11th day of December, 2018. ATTEST: Eric A. Johnson City Administrator Mary McComber Mayor Page 12 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Adopt Resolution for 2019 Liquor, Tobacco, and Amusement License Renewals Time Req. 0 Agenda Placement Consent Originating Department/Requestor inistration/Jennifer Pinski Requester's Signature Action Requested Approve Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. All fees have been paid and the background checks were completed by the Oak Park Heights Police Department. I recommend approval. Page 13 of 158 CITY OF OAK PARK HEIGHTS RESOLUTION 18-12-42 A RESOLUTION APPROVING PROPOSED ANNUAL LIQUOR, TOBACCO, AND AMUSEMENT LICENSES WHEREAS, the City Council for the City of Oak Park Heights has received applications for the year 2019 liquor, tobacco, and amusement licenses from businesses located within the City limits. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Oak Park Heights that the licenses outlined in Exhibit A are hereby approved. Passed by the City Council of Oak Park Heights this 11th day of December, 2018. Mary McComber Mayor Attest: Eric A. Johnson City Administrator Page 14 of 158 EXHIBIT A CITY OF OAK PARK HEIGHTS 2019 LICENSES Off -Sale Liquor Licenses Kowalski Companies Inc. dba Kowalski's Market LaPalao Companies LLC dba Liquor Time Wal-Mart Stores, Inc. dba Wal-Mart Store #1861 On -Sale Liquor Licenses Apple Minnesota LLC dba Applebee's Neighborhood Grill & Bar Dailey Incorporated dba Carbon's Pizzeria & Pub Phil's Tara Hideaway Inc. dba CIub Tara Hideaway Letru Inc. dba Stillwater Bowl & Lounge Bridge Banquet, LLC dba Heights Hall and Club Lo, Inc. dba Joseph's Family Restaurant Edgar Alexis Gomez Alcocer dba Fiesta Cancun Stillwater Muddy Cow Oak Park Heights dba Muddy Cow On -Sale Sunday Liquor Licenses Apple Minnesota LLC dba Applebee's Neighborhood Grill & Bar Dailey Incorporated dba Carbones Pizzeria & Pub Phil's Tara Hideaway Inc. dba Club Tara Hideaway Letru Inc. dba Stillwater Bowl & Lounge VFW 323 dba Greeder-Hinds Comfort Post Bridge Banquet, LLC dba Heights Hall and Club Lo, Inc. dba Joseph's Family Restaurant Edgar Alexis Gomez Alcocer dba Fiesta Cancun Stillwater Muddy Cow Oak Park Heights dba Muddy Cow Club Liquor License VFW 323 dba Greeder-Hinds Comfort Post Ori -Sale Wine License Chipotle Mexican Grill of Colorado LLC dba Chipotle Mexican Grill Tan's, Inc. dba Golden Crown Restaurant Page 15 of 158 City of Oak Park Heights 2019 Licenses Page 2 On -Sale Non -Intoxicating Liquor License Chipotle Mexican Grill of Colorado LLC dba Chipotle Mexican Grill Tan's, Inc. dba Golden Crown Restaurant Off -Sale Non -Intoxicating Liquor License Northern Tier Retail LLC dba Speedway #7036 Kwik Trip Inc. dba Kwik Trip #111 LaPalao Companies LLC dba Liquor Time Northern Tier Retail LLC dba Speedway #4549 Wal-Mart Stores Inc. dba Wal-Mart Supercenter # 1861 Amusement Licenses Letru Inc. dba Stillwater Bowl & Lounge Wal-Mart Store #1861 Tobacco Licenses Northern Tier Retail LLC dba Speedway #7036 Holiday Stationstore #237 Kwik Trip, Inc. dba Kwik Trip #111 LaPalao Companies LLC dba Liquor Time Northern Tier Retail LLC dba Speedway #4549 Wal-Mart Stores, Inc. dba Wal-Mart Store #1861 Walgreens #06916 Page 16 of 158 Oak Park Heights Request for Council Action Meeting Date i)ttk,cfri'oer 11, 2018 Agenda Item Approve License to Sell Tobacco, Tobacco Products, or Tobacco Related Devices For LRS Enterprises Inc. Time Req. 0 Agenda Placement Consent Originating Department/Requestor Administration/Jennifer Pinski Requester's Action Requested Discussion and Possible Action Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). Luke Sodergren and Scott Sodergren of LRS Enterprises Inc have made application for a license to sell tobacco, tobacco products, or tobacco related devices for Sodie's Cigar & Pipe to be located at 5950 Osgood Avenue North in Oak Park Heights. The file has been sent to the City Attorney's office for review. I recommend approval of the license pending no issues with the review. Page 17 of 158 THIS PAGE INTENTIONALLY LEFT BLANK Page 18 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Approve 2019 Taxi Cab Licenses for F.D.S. Enterprises dba A. Taxi Time Req. 0 Agenda Placement Consent Originating Department/Requestor Requester's Signature Action Requested ennifer Pinski and Possible Action Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). I recommend approval pending passage of inspections with the City of Oak Park Heights Police Department, submission of requirement materials, and payment of the license fee. Page 19 of 158 THIS PAGE INTENTIONALLY LEFT BLANK Page 20 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 — Time Required: 1 minute Agenda Item Title Certification of Delinquent Utili Billin Agenda Placement Consent Originating Department/Requestor Finance — Betty Caruso, Finance Director Requester's Signature Action Requested Approve the attached Resolution Approving Certification of Delinquent Utility Charges to the Cointy Auditor for Collection With the 2019 Tax Bills Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): In accordance with MS 444.075 subd 3e and the city ordinance of 1UU1.U4 I am requesting that the council approve the listing of delinquent bills as a lien against the property and authorize that they be sent to the County Auditor for collection with the 2019 tax billing. Due to scheduling of December council meetings, the list has been prepared as of December 7, 2018, however, in accordance with policy, the City will accept payments on the delinquent amounts through December 14, 2018. Therefore, I request that Council adopt the list and give me authority to adjust the amounts for payments or corrections that may be received prior to certification to the County Auditor. Page 21 of 158 CITY OF OAK PARK HEIGHTS COUNTY OF WASHINGTON AND STATE OF MINNESOTA RESOLUTION 18-12-44 A RESOLUTION APPROVING CERTIFICATION OF DELINQUENT UTILITY CHARGES TO THE COUNTY AUDITOR FOR COLLECTION WITH THE 2019 TAX BILLS WHEREAS, the following properties have delinquent utility bills as of December 11, 2018 and require collection; SEE ATTACHED LIST WHEREAS, the City Staff for the City of Oak Park Heights has complied with the collection procedures for the utility billing and the above accounts remain delinquent as of December 14 2018; and, WHEREAS, the City is allowed by statute to use certification to the County for inclusion on the real estate tax collection system as the collection mechanism. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Oak Park Heights that delinquent utility charges included on the list supplied by the Finance Director and as reduced for payments between December 7, 2018 and December 14, 2018, be certified to the County Auditor for Collection with the 2019 Tax Bill. Passed by the City Council of Oak Park Heights this 1 Ith day of December, 2018. Mary McComber Mayor Attest: Eric A. Johnson City Administrator Page 22 of 158 Ir- %' ,W:. -.: Oak Park Heights Request for Council Action Meeting Date December 11,2018 Agenda Item Title: -Approve Resolution Designating 2019 Checking and Bank Depositories Time Required 1 minute Agenda Placement Consen Originating Department/Requestor Belt Caruso Finance Director Requester's Signature Action Requested: Approve Resolution designating 2019 checking and bank depositories Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). The City currently has its checking and some investments with MidWestOne Bank. The bank continues to serve the city well. The remaining institutions hold the other city investments: First State Bank and Trust, Morgan Stanley SB, UBS Financial Services, Wells Fargo Advisors, LLC and the 4M Fund. There are some institutions that I have included on the list that I am not presently investing with, however, I may be using them in the future depending upon the rates offered and if they are willing to pledge securities for any deposits above FDIC limits. Morgan Stanley Smith Barney will not be investing for government institutions after April 2019. 1 will be transferring the investments held there to the same agent that I was using but she has moved to RBC Wealth Management. If we were to invest with any new financial institution, Finance would review bank ratings and financial criteria before investing, along with consulting with other cities regarding the broker. The list of depositories is as follows: MidWestOne Bank UBS Financial Services Wells Fargo Advisors, LLC Morgan Stanley Smith Barney US Bank First State Bank and Trust First Resource Bank League of MN Cities 4M Funds RBC Wealth Management(not presently using) Wells Fargo Bank (not presently used) Bremer Bank (not presently used) Page 23 of 158 CITY OF OAK PARK HEIGHTS RESOLUTION 18-12-45 A RESOLUTION DESIGNATING 2019 CHECKING & BANK DEPOSITORIES MidWestOne Bank — Checking and Investments First State Bank and Trust — Investments US Bank — investments Wells Fargo Bank — Investments Bremer Bank - Investments League of Minnesota Cities 4M Fund — Investments Morgan Stanley Smith Barney — Investments UBS Financial Services — Investments Wells Fargo Advisors, LLC — Investments First Resource Bank — Investments RBC Wealth Management - Investments Passed by the City Council of Oak Park Heights this I 1 th day of December 2018. ATTEST: Eric A. Johnson Administrator Page 24 of 158 g,gx, Oak Park Heights Request for Council Action Meeting Date _ December 11"'. 2018„ Time Required: 1 Minute Agenda Item Title: Animal Humane Society — Letter of Understanding - 2019 Agenda Placement Originating Requester's Signature Action Requested Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): The City of Oak Park Heights does have a continuing relationship with the Animal Humane Society to accept animals secured by the City, (typically the City's Police Department). The AHS is seeking a written agreement between the City that is consistent with past practices and anticipated fee structures. The AHS is typically the only convenient and reliable resource available to the City to provide these animal shelter/possible recovery resources. Fee structures as noted are reasonable and consistent with past years. Staff does recommend the approval of the Letter of Understanding for Impound Housing services for 2019. Page 25 of 158 anlmaL humane society November 1, 2018 City of Oak Park Heights 14168 Oak Park Blvd N Oak Park Heights, MN 55082 Dear Municipal Administrator, RECEIVED City of Oak Park Height AM PM As you know, Animal Humane Society partners with local cities to improve the lives and welfare of animals as well as the impact they have on people in our community. We look forward to continuing our partnership with you in 2019. We reviewed our costs associated with this partnership, and we are updating fees so that they cover these costs while the animals are in our care. When animals are returned to their owners through our facility, we will charge a $21 admin fee to the municipality. We will charge $190 for dogs and cats that remain in our care and are not returned to their owner. We will charge $45 for critters and other small companion animals. These costs cover their housing, feeding, vaccination, and other veterinary care. Two copies of your 2019 contract are enclosed. We anticipate no operational changes that will impact our municipal contracts, so the language in the new agreement is consistent with the one you signed for 2018 with the exception of our billing updates. If you have any questions about the program in general, please feel free to contact me at the email or phone number below. If you have any questions about specific billing issues or animals, please contact Brian Munro, our site manager in Woodbury. We have simplified the process this year by already signing our part of the contract. Please sign both copies of the contract and return one of them to the Woodbury address below. We appreciate your partnership as we seek to serve both the people and animals of our communities. Sincerely, Graham Brayshaw, DVM Director of Animal Services, Animal Humane Society RbrayshawC@animalhumanesociety.or>s (763) 489-2224 Animal Humane Society, Woodbury c/o Brian Munro, Site Manager 9785 Hudson Rd Woodbury, MN 55125 bmunro(@animalhumanesociety.ore (651) 788-4675 Coon Rapids • Golden Valley • St. Paul • Woodbury 952-435-7738 animalhumanesociety.org Page 26 of 158 Animal Humane Society and City of Oak Park Heights, MN Letter of Understanding for Impound Housing Services 2019 1. Animal Humane Society (AHS) agrees to provide the following services: a. Housing for stray or abandoned animals that are retrieved or legally seized by your municipality's community service officer (CSO) or animal control officer (ACO), or for stray animals that are brought into the shelter by a citizen and verbal permission is given by your agency via phone for intake. Housing includes kennel space, daily cleaning, food and water. b. Herd management vaccination following our standard vaccination protocols, as well as medically necessary and/or emergency care for sick or injured animals impounded during regular business hours. c. Euthanasia services as deemed necessary by an AHS veterinarian. These services may be provided at the end of the legally required holding period or in the case of a medical situation that requires immediate euthanasia. d. Adoption services as deemed appropriate by AHS veterinary staff. The animals will be evaluated for these services at the end of the legally required holding period. e. Euthanasia services and body disposal as deemed appropriate by AHS veterinary staff. The animals will be evaluated for these services at the end of the legally required holding period. f. Provide animal rabies quarantine or diagnostic service for stray felines or canines that have bitten a person. g. Hold animal for the legally required stray holding period: 5 days in MN, 4 Days in WI if a live release, 7 days in WI if euthanized or until reclaimed by owner within this holding period. h. AHS will follow internal policy and best practice for unclaimed animals. The City of Oak Park Heights may request and view AHS policies at any time. 2. AHS expectations: a. AHS is not responsible for sick or injured animals that are left after hours. Outside treatment must be sought for these animals by the animal control officer or community service officer prior to leaving the animals at the AHS facility when veterinary staff members are not on duty. b. AHS has the sole authority to disposition all animals that have not been reclaimed upon the expiration of the legally designated holding period. 1 Page 27 of 158 c. AHS will not accept feral cats seized under municipal authority by your municipality's CSO or ACO. d. AHS is not responsible for collecting any fees from an owner for a municipality. 3. The City of Oak Park Heights agrees to: a. Adhere to the drop off procedure set forth by AHS including animal housing at the shelter and paperwork. Drop off procedures and paperwork training for community service or animal control officers will be provided. b. Adhere to state laws and local ordinances that apply to the handling of stray or abandoned animals and the seizure and return of animals to their owners. c. Direct citizens where to take stray animals when not receiving permission for impoundment at AHS. d. Seek care for injured or sick animals prior to drop off in the event that it is after hours and/or AHS veterinary staff is not on duty. e. Pay the designated fees for each animal cared for from your municipality. AHS will charge a standard fee of $190 per canine or feline and a $45 fee per "other" domestic animals (rabbits, guinea pigs, birds etc.) not reclaimed by its owner. AHS will charge a $21 administrative/processing fee to the municipality for each animal reclaimed by its owner in place of the standard fee. In these instances AHS will charge the owner reclaim fees. Fees for animals seized by the municipality (such as rabies quarantine) may vary due to the differing nature of their holding periods and services required. f. Adhere to AHS policy and best practice for unclaimed animals. The City of Oak Park Heights may request and view AHS policies at any time. g. Adhere to building access rules and ensure that the service access door is closed and locked after use in an after hours drop off. h. Ensure that the municipality's CSO/ACO uses his/her discretion in the field as to whether or not to impound an animal. AHS is not responsible for those decisions. i. Be available to members of your community to resolve their concerns related to the actions of your ACO/CSO officers and your municipality's procedures, policies and requirements. j. Release AHS from all liability of claims resulting from or related to providing impound housing services. The City of Oak Park Heights accepts responsibility for the CSO/ACO while in the course of impounding animals at AHS. 4. Administration a. AHS will bill the municipality at the end of each quarter on a fiscal calendar year. Billing will be mailed in the first month following the end of the quarter. Payment is expected within 30 days of receipt of billing. b. AHS will assign a contact person who should be contacted in the event of any problems, concerns or to receive feedback regarding the program. c. Any billing disputes must be raised within 10 days of receipt of billing. 2 Page 28 of 158 This agreement is based on a one year commitment, which is renewed annually from the date your administrator signs the agreement below. The agreement can be ended at anytime by either party with a 30 day notice. This agreement is entered into on the day of , 201_ by Animal Hu#aane Society & CEO Signed on behalf of Municipal Authority Printed Name and Title Page 29 of 158 3 THIS PAGE INTENTIONALLY LEFT BLANK Page 30 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Time Required: 1 Minutes Agenda Item Title: Approve Proclamation Supporting — National School Choice Week Agenda Placement Consent Agenda Originating Requester's Action Regi Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): I would like the Council to adopt the enclosed Proclamation. Supporting information also enclosed. Page 31 of 158 PROCLAMATION CITY OF OAK PARK HEIGHTS THE CITY OF OAK PARK HEIGHTS SUPPORTS SCHOOL CHOICE WEEK WHEREAS, all children in Oak Park Heights should have access to the highest -quality education possible; and, WHEREAS, Oak Park Heights recognizes the important role that an effective education plays in preparing all students in Oak Park Heights to be successful adults; and, WHEREAS, quality education is critically important to the economic vitality of Oak Park Heights; and, WHEREAS, Oak Park Heights and the surrounding community is home to a multitude of high-quality public and nonpublic schools from which parents can choose for their children, in addition to families who educate their children in the home; and WHEREAS, educational variety not only helps to diversify our economy, but also enhances the vibrancy of our community; and, WHEREAS, Oak Park Heights has many high-quality teaching professionals in all types of school settings who are committed to educating our children; and, WHEREAS, School Choice Week is celebrated across the country by millions of students, parents, educators, schools and organizations to raise awareness of the need for effective educational options; NOW, THEREFORE, I, do hereby recognize January 20-26, 2019 as Oak Park Heights School Choice Week, and I call this observance to the attention of all of our citizens. THIS PROCLAMATION IS APPROVED AND ADOPTED this 11'' day of December 2018 by the Mayor and City Council for the City of Oak Park Heights Mayor Mary McComber Attest: Eric Johnson City Administrator Page 32 of 158 National School Choice Week FAQ WHAT IS NATIONAL SCHOOL CHOICE WEEK? Held every January, National School Choice Week shines a spotlight on Page 1 of 4 effective education options for children. Featuring tens of thousands of events and celebrations, NSCW is the world's largest celebration of opportunity in education. The goal of NSCW is to raise awareness about the K-12 education options available to children and families, while spotlighting the benefits of school choice. WHAT TYPES OF SCHOOL CHOICE DOES NATIONAL SCHOOL CHOICE WEEK CELEBRATE? We celebrate all types of K-12 options, including traditional public schools, public charter schools, public magnet schools, private schools, online academies, and homeschooling. NSCW does not preference one type of education option over another. We trust parents to make the best choices for their individual children. WHO PLANS NATIONAL SCHOOL CHOICE WEEK EVENTS, MEETINGS, AND ACTIVITIES? Page 33 of 158 https:Hschoolchoiceweek.com/faq/ 12/5/2018 National School Choice Week Page 2 of 4 Anyone can plan an NSCW event, meeting, or activity. NSCW events are independently planned by thousands of schools, homeschool groups, organizations, coalitions and individuals across the country. These schools, groups, and individuals decide how they want to celebrate NSCW and plan the types of events, meetings, or activities that best meet their objectives. ARE THERE ANY FEES TO PLAN AN EVENT, MEETING, OR ACTIVITY DURING NATIONAL SCHOOL CHOICE WEEK? No. We do not charge any licensing fees for people who want to plan events, meetings or activities to celebrate NSCW. In fact, if you are interested in planning an event during NSCW, you may be able to receive free NSCW supplies by using one of our sign up forms. Of course, event planners are responsible for any incidental costs they choose to incur to enhance their events (such as snacks, A/V equipment, etc.) HOW CAN I FIND OUT WHAT EVENTS ARE HAPPENING IN MY AREA DURING NATIONAL SCHOOL CHOICE WEEK? In January, visit our website and look at our online events map. Please note that not every event planned for NSCW is posted to our map. Some events, meetings, or activities, such as ones designed for students at a specific school, might not be posted. WHEN IS NATIONAL SCHOOL CHOICE WEEK IN 2019? National School Choice Week 2019 is held from January 20 to January 26, 2019. WHY IS NATIONAL SCHOOL CHOICE WEEK HELD IN JANUARY? Page 34 of 158 https:Hschoolchoiceweek.com/faq/ 12/5/2018 National School Choice Week Page 3 of 4 January is an ideal time for parents to start looking at schools for their children. If parents start searching for schools in January, they should have enough time to enroll their children for the following school year. HOW CAN I RECEIVE SUPPLIES TO CELEBRATE NATIONAL SCHOOL CHOICE WEEK? National School Choice Week supplies, including our signature yellow fleece scarves, are provided at no cost. To receive these supplies, schools and organizations must request them using one of our sign up forms, however, these supplies are limited; Are you interested in receiving supplies? Then please kindly sign up to receive them by October 1. WHAT IS THE SIGNIFICANCE OF THE YELLOW SCARVES AND DO I NEED NSCW SUPPLIES TO PARTICIPATE? NSCW's yellow fleece scarves have become one of America's most recognized symbols of opportunity in education. We recognize that while every event, meeting, or activity during NSCW focuses on different aspects of school choice, the scarves provide a bright, colorful, and energetic way to link these unique events together. Furthermore, this helps show all events as part of a broader national celebration. You are not required to use supplies to participate but we encourage you to sign up to receive supplies so that you can affiliate your event with the overall national celebration. 1 JUST RECEIVED A BOX OF NSCW SUPPLIES. WHY DID THEY GET SENT TO ME? Page 35 of 158 https://schoolchoiceweek.com/faq/ 12/5/2018 National School Choice Week Page 4 of 4 If you received a box of NSCW supplies, someone associated with your school, homeschool group, chamber of commerce, or organization signed up to receive these supplies. Please ask your colleagues to identify the person who should receive the box. DOES NATIONAL SCHOOL CHOICE WEEK ADVOCATE FOR SCHOOL CHOICE LEGISLATION? No. National School Choice Week is nonpartisan and nonpolitical, and we do not advocate for or against any government action. Page 36 of 158 https://schoolchoiceweek.com/faq/ 12/5/2018 National School Choice Week About National School Choice Week HELD EVERY JANUARY, NATIONAL SCHOOL CHOICE WEEK (NSCW) SHINES A SPOTLIGHT ON EFFECTIVE EDUCATION OPTIONS FOR CHILDREN. Pagel of 3 During NSCW, schools, homeschool groups, organizations and individuals plan tens of thousands of independent events. These celebratory events raise public awareness of the different K-12 education options available to children and families while also spotlighting the benefits of school choice. NSCW recognizes all K-12 options, including traditional public schools, public charter schools, public magnet schools, private schools, online academies, and homeschooling. Started in 2011, NSCW is now the world's largest annual celebration of opportunity in education. Over the past seven years, more than 58,000 NSCW events have been planned across the country and around the world. NSCW is a nonpartisan, nonpolitical, independent public awareness effort. Therefore we are not associated with any legislative lobbying or advocacy. Page 37 of 158 https://schoolchoiceweek.com/aboutt 12/5/2018 National School Choice Week Sabre Semana Nacional de Eleccion de Escuela DISCOVER MORE • Frequently Asked Questions • Look Back — NSCW Over the Years • 2018 Recap Video • Meet NSCW President Andrew Campanella Follow us on Facebook, Twitter, Instagram, Snapchat, and YouTube • Social Media Profile Picture: Show that you're celebrating NSCW to your friends and family by adding our stamp to your profile picture. • Download the NSCW Logo Page 2 of 3 • Share Your Photos and Videos: Please upload your photos or videos from your event, meeting, or activity by clicking here, or just e-mail us at photos@schoolchoiceweek.com. We try to share as many photos and videos on our social platforms, videos, and website as possible! • View all resources • Official Dance: Watch our tutorial to learn all the moves to the official NSCW 2018 dance, set to"Better When I'm Dancin"' by Meghan Trainor. • Sign Up for E-mail News Updates https://schoolchoiceweek.com/aboutl Page 38 of 158 12/5/2018 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Time Required: 1 minute Agenda Item Title: Approve SaIM Adjustment for Exem t Employees Agenda Placemen Originating Depar Requester's Signal Action Requested Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Typically, the City Council considers a wage adjustments on an annual basis for exempt (non - represented employees). The Action requested at this time is to approve a 2.75% wage increase for the City Clerk and the Accountant II positions. The 2019 Budget as currently proposed does have adequate funding for 2.75% increase and does mirror increases for other employees found in Unions. In addition, these positions would similarly follow the health care contribution increases and cost sharing by the represented employees. Based on 2018 LMC Salary Survey data., these positions are generally above the average of their metro peers, but are not unreasonably out of line with the current market conditions and — I believe -what is commensurate with their total roles the City expects them to continue to perform. 2011 was 0.0% 2012 was 1.5%. 2013 was 3.0% 2014 was 3.0% 2015 was 2.75% 2016 was 2.75% 2017 was 2.75% 2018 was 2.75 % Page 39 of 158 THIS PAGE INTENTIONALLY LEFT BLANK Page 40 of 158 Oak Park Heights Request for Council Action Meeting Date December 11 2018 Time Required: 1 minute Agenda Item Title: Cily Code of Ordinances — Update CC 102 Master Fee Schedule Agenda Placement Consent Originating Department/Requestor Administration/Julie Hultman Requester's Signa Action Requested Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): In May of 2006, the City Council reviewed and adopted City Ordinance CC 102 -Master Fee Schedule which was created in such a manner that it could be revised on an as needed basis without re -adoption of the city code and/or publication. The schedule was last updated, with changes adopted December 12, 2017. Consideration is requested for proposed Master Fee Schedule amendments to include: 2019 Area Charge for Connection to Water, Sewer, and Storm Sewer Systems as approved by City Council on November 27, 2018. 2. Sewer Rates as reviewed and approved by City Council earlier this meeting. 3. Fire Protection Permit Fee. Currently permit fees are based on job valuation and often results in a permit fee that is not commensurate to resources expended for the processing and inspection of the fire protection work. I propose that fire protection permit fees continue to be based on job valuation but that a minimum permit fee of $50 plus the MN State Surcharge be established. I recommend that the summary of fee amendments to CC -102 Master Fee Schedule be adopted as above proposed, with any amendments made by the City Council. The amendment to the schedule shall be published as required by law with an effective date of January 1, 2019. Page 41 of 158 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA ORDINANCE NO. 2018-102-10 AN ORDINANCE AMENDING CHAPTER 102 CODE OF ORDINANCES OF THE CITY OF OAK PARK HEIGHTS SPECIFICALLY RELATED FEE CHANGES THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA, DOES ORDAIN: Section 1. Amendment. That Chapter 102 of the Code of Ordinances of the City of Oak Park Heights is hereby amended to add the following changes in fees, providing as follows: Schedule of Fee Amendments: • Sewer Usage Rates (Quarterly) based on gallons of water used: As Approved By City Council on 12-11-2018 * Residential rates determined by amount of water used in the March quarter of each year. * Commercial, Industrial, Institutional and High Density Residential rates are based upon actual usage each quarter. Up to 15,000 gallons From $81.00 to $78.50 + Each 1,000 gallons above 15,000 gallons up to 50,000 gallons No Change + Each 1,000 gallons above 50,000 gallons No Change • Area Connection Charges: For Undeveloped/Unconnected Land (Utility Area Charge) Land Use: Commercial/industrial & Retail/Business Centers: • Sanitary Sewer From $2,682 per acre to $2,768 per acre • Water Main From $13,938 per acre to $14,3 84 per acre • Storm Sewer From $2,174 per acre to $2,244 per acre • Storm Sewer - TSMP Area From $10,138 per acre to $10,462 per acre Land Use: Low Densily Residential: 4 Sanitary Sewer ■ Water Main • Storm Sewer • Storm Sewer - TSMP Area Land Use: Medium Denst Residential: • Sanitary Sewer • Water Main • Storm Sewer • Storm Sewer -- TSMP Area Land Use: High Density Residential: • Sanitary Sewer • Water Main • Storm Sewer • Storm Sewer - TSMP Area As Approved By City Council on II -27-2018 From $2,557 per acre to $2,639 per acre From $13,296 per acre to $13,721 per acre From $1,197 per acre to $1,235 per acre From $9,161 per acre to $9,454 per acre From $3,411 per acre to $3,520 per acre From $17,727 per acre to $18,294 per acre From $1,736 per acre to $1,792 per acre From $9,699 per acre to $10,009 per acre From $5,970 per acre to $6,161 per acre From $31,027 per acre to $32,020 per acre From $2,174 per acre to $2,244 per acre From $10,138 per acre to $10,462 per acre Page 42 of 158 • Fire Protection Permit Fee: Based on job value, but not less than $50. State Surcharge will be charged. Plan review fee will be charged, if applicable. Section 2. Effective Date. This Ordinance shall be in full force and effect January 1, 2019, after its passage and publication according to law. Passed and adopted by the City Council of the City of Oak Park Heights, Washington County, Minnesota, on this I Ph day of December, 2018. Attest: Eric A. Johnson, City Administrator CITY OF OAK PARK HEIGHTS Mary McComber, Mayor Page 43 of 158 THIS PAGE INTENTIONALLY LEFT BLANK Page 44 of 158 ITO Oak Park Heights Request for Council Action Meeting Date December 11 2018 Time Required: 1 Min Agenda Item Title: AD rove Allocation of General Fund Unassigned Balance and Non - budgeted Fund Transfers Placement: Consent Originating Department/Requestor Finance -Betty Caruso Finance Director Requester's Signature Action Requested: Approve Resolution for transfer of funds from the 2017 General Fund Balance and the Unbud eted Transfers for 2018 for the closing of the Connection Fee Funds to the Renewal and Replacement Funds. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): During the 2019 Budget sessions, there were discussions of the General Fund Balance as of 12/31/2017 that should be allocated in accordance with our Fund Balance Policy. After complying with the funds maintained in the General Fund for Cash Flow needs, Contingencies and Compensated Absences, the City has funds of $608,000 unassigned. In addition to the items of General Fund allocations, general housekeeping of Funds would recommend the closing of funds if restrictions do not exist. If a fund doesn't have a continuous revenue stream nor a designation of expenses, the Fund should be closed and managed within other Funds. I am proposing to do so with the Water, Sanitary and Storm Connection Funds. The Funds would be transferred and managed from the appropriate Renewal and Replacement Funds. This can be a sub -account of the present fund and would be appropriate to be part of the funds for the renewal and replacement of the city's present infrastructure. The Closing of funds and the transfers for General Fund Balance are listed on the Proposed Resolution. Page 45 of 158 RESOLUTION 18-12-48 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING INTERFUND TRANSFERS AND FUND DESIGNATIONS WHEREAS, The City Council adopted the 2018 budget for calendar year on December 13, 2017; and, WHEREAS, The 2017 Annual Financial Report had a favorable fund balance of unassigned funds of $608,270; and WHEREAS, the City Council for the City of Oak Park Heights has determined that funds from the General Fund should be allocated in accordance with the Fund Balance Policy as adopted by the Council; NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Oak Park Heights to approve the following transfers and designations of the 2017 unassigned fund balance. ALLOCATION OF THE 2017 FUND BALANCE 12/31/2019 AND, THEREFORE BE IT FURTHER RESOLVED, by the City Council for the City of Oak Park Heights to approve the following 2018 unbudgeted transfers . UNSUDGETED TRANSFERS AND FUND CLOSING TRANSFER AND CLOSE FUNDS TRANSFER AAE SANITARY SEWER CONNECTIONS TO RENEWALAND REPLACMENT 771 710 $ 594,300.00 EST TRANSFER AAE WATERWORKS CONNECTIONS TO RENEWALAND REPLACMENT 772 710 $ 727,000.00 EST TRANSFER AAE STORM SEWER CONNECTIONS TO STORM SEWER RENEWALAND REPLACEMENT 773 712 $ 1,050,500.00 EST Passed by the City Council for the City of Oak Park Heights this 11th day of December, 2018. Attest: Eric A. Johnson Administrator Mary McComber, Mayor Page 46 of 158 FUND FUNDTO AMOUNT TRANSFER OUT- 2017 FUND BALANCE ALLOCATION ALLOCATION TO THE 2019 BUDGET $ 203,666.00 TRANSFER TO CAPITAL BOND 2009 - CALLED AND RETIRED 101 527 $ 136,949.26 TRANSFER TO BUDGET PROJECTS- TRAVEL BUDGET RESERVE 101 401 $ 4,000.00 TRANSFERTO STREET RECONSTRUCTION - UNFUNDED STREET 101 565 $ 150,000.00 AND, THEREFORE BE IT FURTHER RESOLVED, by the City Council for the City of Oak Park Heights to approve the following 2018 unbudgeted transfers . UNSUDGETED TRANSFERS AND FUND CLOSING TRANSFER AND CLOSE FUNDS TRANSFER AAE SANITARY SEWER CONNECTIONS TO RENEWALAND REPLACMENT 771 710 $ 594,300.00 EST TRANSFER AAE WATERWORKS CONNECTIONS TO RENEWALAND REPLACMENT 772 710 $ 727,000.00 EST TRANSFER AAE STORM SEWER CONNECTIONS TO STORM SEWER RENEWALAND REPLACEMENT 773 712 $ 1,050,500.00 EST Passed by the City Council for the City of Oak Park Heights this 11th day of December, 2018. Attest: Eric A. Johnson Administrator Mary McComber, Mayor Page 46 of 158 Oak Park Heights Request for Council Action Meeting Date .. _ December 11, 2018 _ Time Required: 1 Minutes Agenda Item Title: Approve PoliMRelating to Placement of Civic Organization. Stege. Agenda Placement Consent Agenda Originating Department/Requestor: Council Member Dou henry Requester's Signature Action Requested Approve Polia Relating to Placement of Civic Organization Signage Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): I would like the Council to adopt the enclosed policy related to the placement of civic organizational signage on City identification signs as installed by MNDOT. Page 47 of 158 C' - CITY OF OAK PARK HEIGHTS A POLICY RELATING TO THE PLACEMENT OF CIVIC ORGAINZATION SIGNAGE The City Council does encourage its citizenry and businesses to participate in the advancement of public discourse, balanced engagement and community service. Such values can be advanced through benevolent civic organizations such as the Order of Elks, Kiwanis Club, Rotary Club and other similar organizations that are secular, non-profit and are focused on giving back to the community as a whole. Considering this position, the City may concur the placement of reasonable signage for such organizations on MNDOT placed City identification signage and that may be located in public right of way(s). A request to place such signage should be addressed in writing to the City Administrator for consideration and that also details information of the requesting organization. The City will be required to affirm the following: That the requesting organization is a secular, non-profit entity; Can be definitively identified as a benevolent community service organization and has a functional and active local management structure. The requesting parry shall provide any requested signage it is sole expense for review and approval by the City Administrator. All signage must be made of durable materials suitable for outdoor use in a highway corridor environment. Should a sign be damaged and/or need replacement the City will request a new sign from such entity at the entity's expense. The City shall not be responsible for any specific maintenance or provide a guaranty that such sign shall remain in place for any duration. All signage is subject to the final approval and rules of the State of Minnesota. The City cannot guarantee that all requests may be accommodated as there is limited opportunity for any such signage. Current total capacity at any sign location is three (3) signs. Individual signage should be no larger than 27" X 27". Page 48 of 158 �T;A Oak Parr Heights Request for Council Action Meeting Date . December 11, 2018 Agenda Item Title Truth in Taxation — 2019 Budget Presentation Time Required 10111111 Agenda Placement Public Hearin Originating Department/Requester Finance-BettyCarusoFinance Director I Requester's Signature /�,, C, -F Action Requested Hold Public TINT Hearing for Taxpayers Comments and Information Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). TNT Hearing Notices were mailed to taxpayers in the city between November 10 -24th giving them notice of their proposed property taxes for 2019. The TNT hearing is scheduled for December 11, 2018, 6:00 p.m. City Hall, 14168 Oak Park Blvd. N., for public input and information. The city council adopted a proposed budget $5,280,246 on September 11, 2018 and the information given to the taxpayers is based on that budget. Changes to the budget can be made through adoption, however the Council cannot make changes to exceed this preliminary TAX LEVY amount. Action Request Hold the Public Hearing Page 49 of 158 Page 50 of 158 Page ey1a ¥ � c � � m � u c 2 w buO f = $ 2 $ L c k � g 7 a.0 o 0 = � O ° 7 o u \ J k 2� 2 c a § '§.F � S § 2 bD u (D k 7§= § Qu%= 2 ® r cL J E Li k J k 0.� co< .� ƒ 2 E kU . . . . . . . . UJ §2 7 2 > M §M �_ $ 0[ k g c c 0 c A § - CL2 § 0 a E c bb 0 c E' R ci 3 2 2 2 7 R 7 2 V Qj cu 0 A % m k k U . . . . . CL w . . . . Page ey1a ¥ c � u c 2 w f = $ 2 $ L k g 7 a.0 o 0 4� = U -6§ g O ° o ƒ \ k 3 a § '§.F � S 2 bD (D k 7§= § Qu%= E W Li k J k 0.� co< a 3 ƒ . . . . . . . . . Page ey1a F='O r 00 O pop 00 0 0 Ln ujO a1 z> 0 L6 LU 4-j D 4-j 9 LO z 0 Page 52 of 158 O pop 00 0 0 Ln Page 52 of 158 Ln 0 0 ujO a1 Ln 0 cu LU 4-j D 4-j (U C Q) 0- V) (D X z u V) 44— WLU 4� C) x Z3 LLI a- CL o Page 52 of 158 Page 53 of 158 K� � U ct � U ct4-1 Q cc U � O • � O C� • U (40cz ct cC ct bo ct ctcc U O c� '� O C� C) bA O ct U 9:: > ate--+ ct GJ +j • �' ^ U . a--' '•d U \ U '� N ct U q� bA _� Ct �.� Cd cC U O U > bt b ?C p U ticCCS Cid cn a� a� . C U -i--� `t U "'' �t C U .0 bA p rn '� ct 4-1 bUACZ U U � U ct � �. G� O O O (� • •-` O"R�' o '� •' 4 ° O ° cv > ° ° Q Page 53 of 158 Page 54 of 158 v c� N U O O O O 4-j Qy O N e� r- (M co -,7 L(1 GO 11, N0) 41 V 00 6, 1-1 of N e -t CD 117 M Go .--� N N c rri LD Q V.►�,J Ulv, Liz C1 I 11+ Lij m C C a, v, , � eY h W n N -1 O N f,4 � 3 v �✓ 4--J .n 75 ct a) LIS v, A m D Q 0 m 4—d .-Z o ~ a � v r t6 iv o� LA kb co W co Y-1 Lli �'l `i;` n ` . o co o a eC� Ql t] -1 rn Q 0 q R-) ©M It fes. rte: fes. E� m m 06 C CO e -y 4 tU m I� O to co �1— LO O a O w O IFS- Q Q 4 L �4 U ^,< ILJ LU 11.1, a Q UA Z Q �_ U U ceLL Q X 11 tv u V N ? H O u �1 L1. LU a MCt N u 7 4 Q Q CC DC O •fid 4-j Page 54 of 158 � � � / Page 55 ¥12 u�* OR .. x N I 00 00 O� W,co v Ll� cq °D x o z I r co c) ' i 1 N C 3 G.m) C4 j) rto -C6 CiS i i p p o I p A o CCU o o f o 0 c� N' o O i L ' ( o I N O N d &� b9 cn- VD- G Page 56 of 158 x W,co Ll� cq °D o N > f%.r -C6 CiS Q, i Q "✓G` M U � � O o O O CV N M bt G {ft f vj. Page 56 of 158 0-,. Oak Park Heights Request for Council Action Meeting Date December 11 ". 2018 Time Required: 5 Minutes Agenda Iter. Agenda Placei Originating Requester's Action Requ Background/jusuncatnon (rlease indicate if any previous action has been taken or if other public bodies have advised): Please see the attached memo dated 12/7/18 Page 57 of 158 City of Oak Park Heights 14168 Oak Park Blvd. N • Oak Park Heights MN 55082 • Phone (651) 439-4439 • Fax (651) 439-0574 1217/18 MEMO TO: Mayor and City Council FROM: Eric Johnson, City A ini RE: Special Home Occupation Lic n Request -14860 Upper 55th Street N Summary: The Corey and Michelle Lorenz, (the Applictants) the owner of 14860 Upper 55th Street have been operating a cat breeding business "Stillwater Premier Bengal Cats" inside the garage of their property for approximately the last 12 months_ Thp Applicants were unaware that such a use — a commercial operation - is not permitted in the City without a review and the possible issuance of a Home Occupation Permit. In this particular case a SPECIAL HOME OCCUPATION PERMIT. They have now applied for under such permit under City Ord. 401.15 M.2.b. The Applicants breed "Bengal cats", a domestic breed identified by the American Cat Fancier Association - http://www.cfa.org/Breeds/BreedsAB/Benoal aspx The Applicant's sell such kittens for approximately $1,000 each and are apparently desirable due to their markings and temperament. Attachments: 1. Application and Breed Information 2. Photos from Site Visit made on 12/6/18. 3. MN Statutory elements 4. City Ordinances: 601 Kennel and 4015.15 M - Special Home Occupations 5. Copy of Public Hearing Notice Site Visit: The Applicants keep the cats inside their attached garage which is approximately 400 square feet, (two -car garage). Such garage is insulated and heated. At the time of the visit ,the cats appeared to be healthy, friendly and in good condition. Each cat (except the breeding pair) is contained in a large two-level cage. The garage was warm, tidy with less odor than expected; the Applicants have installed a HEPA air filtration system in the garage. The garage is just off -the kitchen in a rambler -style home. NOTE: The Applicants also have a Kennel Permit for the three companion dogs. Kennels: City Ord. 601 does reference and require a Kennel permit when there are three or more dogs located on the premises. However, the definitions in the City's ordinances does only apply for dogs — noted below. In effect, there is not specific "limit" on the number of cats in a home. 601.08 Kennels: It shall be unlawful to operate any kennel unless a permit to operate the same has been secured from the City Council in advance. Page 58 of 158 1. °Commercial Kennel" means a kennel where dons are bred and/or sold for re -sale, individually or in litter lots, whether ornot any of these animals are also kept for personal use and where the business maybe a primary source of income. Commercial kennels are also places where dogs are boarded, groomed, or trained for a fee. L. 'Kennel' means any place where three (3) doQss or more (or up to the number of dogs permitted as an accessory use within the City's Zoning Codes and within the limitations therein provided) over four (4) months of age are kept, raised, sold, boarded, bred, shown, treated, or groomed. However, it is the element of the commercial activity being conducted in the home - the act of operating a business, per -se (as these are not companion animals) and having people come to the property for the viewing and purchase of such animals that triggers such review. Special Home Occupation and State Licensure: City Ord. 401.15 M 3.c.2 does allow a SPECIAL HOME OCCUPATION to be conducted in an Accessory Structure (garage), assuming compliance with the other related elements found in 401.15 M. a & b; the latter which outlines exterior storage, prohibition of outside employees, prohibition of signage, application of building codes, and hours of operation. The Applicants have provided proof of their registration # 849420 with the State of Minnesota and which also requires a site inspection by State personnel and verification by a veterinarian. Both reviews are intended to prevent improper conditions. Recommendation: The Applicant's proposal and uses does not appear that it would alter the residential character of the neighborhood as all operations would be indoors and visits to the site from prospective buyers of the cats would likely be very limited and of non-commercial vehicle types. Staffs larger concern is that of animal welfare, but for which the City must heavily rely on the reviews outlined by the State of MN. Therefore, STAFF would recommend approval with the following conditions. Conditions for Approval: In addition to those requirements found in City Ordinances including but not limited to 401.15 M.3.a and b (parts 1 & 2) the following shall be conditions of approval as noted below (1-11); if non-compliance is found by the City it shall be immediate grounds for Permit revocation and all animals shall be removed from the City within 72 hours: The Applicant shall provide the City Staff immediate access to the property for the purposes of site inspection and animal welfare check at any -time, including access to all animal monis. 2. The Applicant's State licensure shall remain in proper order and in -effect, 3. All cats and dogs kept at the property shall be duly licensed over the age of 6 months; no exceptions. 4. The Applicant shall maintain a medical /welfare file of any animal on the premises over 14 weeks old. Such data shall include status of medical examinations with signatures by a licensed veterinarian including but not limited to, proof of vaccinations and other records so as to reasonably ascertain health and wellness. 5. The Applicant shall comply with State Statute(s) associated with any animals kept on the property, including but not limited to MN STAT. 343.20, 343.21, 343.24, 343.27, 343.28 & 343.31 and 346.35; 346.36, 346.37 & 346.39 6. No more than two (2) males and (8 females) cats may be kept on the property. Litters of kittens under the age of 24 weeks are not included in this calculation. A HEPA air filtration system shall remain fully -operable and utilized at all times. 7. No cats may be maintained outdoors or outside the primary home or its attached garage. All cats shall have reasonable time outside of their respective caged area to free roam within the garage area and not less than 1 hour per day to do so. 8. Boarding, keeping or maintaining of other cats and dogs not specifically owned by the Applicant is prohibited. Page 59 of 158 All animal waste shall be maintained in fashion so that it does not create a noxious odor or visual impairment to the neighborhood. The Applicant shall additionally pay a $75.00 annual fee to the City to offset the estimated tonnage associated with cat litter disposal. 10. Should the Applicant's move from the premises, yet decide to retain ownership of the home and rent out such space, this permit would be void. The Applicant must maintain the home as their primary domicile and occupy such home. 11. The Applicant shall agree that any enforcement action deemed necessary by the City shall be immediately complied with and any subsequent enforcement (including impoundment and/or boarding costs) shall be billable to the Applicant and non-payment of which shall be fully assessable to the property as a tax lien. Page 60 of 158 k1ThL(4AtCJVr NF1 ki City of Oak Park Heights 14168 Oak Park Blvd. Boer 2007 Oak Park Heights, MN 55082 Phone (651) 439-4439 -Fax(651)439-0574 www.cityofoakparkheights.com HOME OCCUPATION PERMIT APPLICATION V WV— Cvs1-353-1ZZg Pbrsoncj Applicant:m yr se 1'Pf?,2_ Phone # IiLp?�-L421p a"]-7 Street Address: j rr) rl Cir ('v 4 tszip -SG5g-Z Email: 'V1}+ I Jcx uh - le -If MCU, C nay Pursuant to MN Statute 270.072 Tax Clearance; Issuance of Licenses, the licensing J authority is required to provide the Minnesota Commissioner of Revenue your Minnesota business tax identification number and social security number of each license applicant. Please provide the following information as it applies to your home occupation: Business Name: KNj S Minnesota Tax Identification Number.- Federal Tax Identification Number: 82- 34 -109 ,Z Personal Information (Name): MjCj"lip LD�-erj Social Security Number: For application property: Street Address: I:u.d r 55-tn at City00-V _.. zip Legal Description of the property: Zoning District: Is the property connected to the City water and sewer system? ) Yes — No Page 61 of 16a (If additional space is needed to adequately answer the following, please accurately number and answer the responses on the back of these sheets.) �" Describe the home occupation (type of home business) being proposed: Describe the character of the existing surrounding property: T2s i �l.er��-=i c� �1 e i ai�cr I�Dod Who is to be employed in proposed occupation? -MChO UD i areal Will any person(s) be employed that does not live at the occupation address listed in this application? Yes No In what part of the structure will the occupation be located? Page 62 of 158 How many customers will be served at one time? What are the intended days and hours of this occupation? It yourie-s,b Q -f i i - rJ What service will this occupation provide? Is off street parking available? �<_ Yes No If yes, describe location, capacity and type of surface: U-IV2 WhU Will there be a need for street parking? Yes )— No If yes, how much space will be needed? Page 63 of 158 Will the occupation require the use of an accessory building? Yes V_ No If yes, please justify the need of an accessory building and describe the facility: Will the home occupation require or involve any equipment not normally found in a dwelling unit? Yes X No If yes, please describe the equipment: Will the occupation involve over-the-counter sale of merchandise produced off the premises? Yes X No If yes, please describe the merchandise to be sold: How long do you anticipate the occupation be carried on at this address? 5 qea rs 4 Page 64 of 158 How much of an investment in the premise is required for this occupation? If an investment is required, does it include alteration? Interior Exterior If so, Please describe the required alteration: Are other governmental licenses or permits required to legally conduct business in this occupation? _) Yes No If yes, please list the licenses and/or permits below: M N board of a -n f ma -1 hea Rh For Gmincrna f 8reec[erc The City reserves the right upon issuing any home occupation permit to inspect the premises in which the occupation is being conducted to insure compliance with the provisions of Zoning Ordinance 401.15.M "Home Occupations." May the City inspect the premise during the application process? Yes If no, please explain: 5 No Page 65 of 158 Is there any additional information regarding this application that the City should be aware of concerning the occupation? lit By signing this application, I declare that I have read all applicable City Ordinances. I affirm that all information provided to the City of Oak Park Heights on this application, or as a part thereof, is true and accurate to the best of my knowledge. Date: Signature of Applicant Please Check One: Fee shall be submitted with complete application. New: Special Home Occupation —Fee: $100 (Ordinances 401.03 & 401.15.M) New: Permitted Home Occupation Fee: $ 25 (Ordinance 401.15.M) Home Occupation Renewal (Annual) - Fee: $ 15 Page 66 of 158 N N N r I Page 67 of 158 S2 c N 0 F OI c V. m U) 4-+ ca U 15 ^0 _ L � N � c cu L N "c 0 a, L O N CD W— Y C O z 2 M) 0 D. m cc 0 m U f0 CD C N m N m ► O C N a t :3 N rn G in a p1 y N d ms N c Y C CD c e m O U3 a cc W t5 N a L aT+ cr N W Cl LO LO z 2 a� 3 Z' N L U5 N a d O 00 Hl a a / ca r0 s cn LO N d a%0 o e xp a U m m CU E a f0 U) N m fn ► ZZ o G 0 � C :a E ++ LL f6 � U LC � C: N O a m L Cc; ° i o: o �I W U O c N m T m � o• N � N a0 U O m � C C c y ► in cc "a a N o c :3N U L - G_ o O y f6 Y c 0 U co N O _p eJ ai O ai v N aY w- = E U cn W N y rO i0 L di o 45 _ c .x O a c GI m M Q O (� fc y E E •O •p N rn� O Od. C a W C N v O E t p m N r a N m Ul ca m C cu U O z � o d Z D N N_ 7 LL o a G E �_ 0 O N N = aci fA *' d 0 L3 r- d W ch L CO m t LL N 4 3 Y m L N N W o N d o ca VO tm E-• v w y 3 U L c0 ca W06 Y > o n N c c`i O 0 O m O (� ((a .� S Cn CO N ac0i a = 0o c� O 3 O d 7O a N CY Ix a N N W W of Y N T U U rn c U ° o m t E N v w m U o d o F- 0 m C O W C V C U o CC Wc L tm m N N d C m d m �7 n m 12-1 CU 0 L O �] a 0 (U 0 Ol ca N c M U m CO cuW CO ` C N rn E O a 's;, m m t F= N O1 W U O c N m T N � N a0 U O m � C C c y ► in cc "a a N o c :3N U L - G_ W11 A O (D f6 Y c 0 U co O _p eJ ai O ai v N aY +- 2! f) U 111 O1 ; U cn W N y rO i0 L {p C m o 45 _ c .x O a c GI m M Q O (� fc y E E •O •p N rn� O Od. C a W C N v O E t p C -a7CL � m m Ul ca m C cu U O z U p1 C N •D Z D N N_ 7 LL o a G E �_ m rn W O N N = aci fA *' d 0 L3 r- O d N 0 ch L ,C W F m t LL N 4 3 Page 68 of 158 Cl) Page 69 of 158 Breed Profile: The Bengal (http://www.cfa.org/Home.aspx) Page 1 of 6 DNA ttees�n ihttt //www.catdnatest.or eCat Online htt s://ecat.cfa.or /) I Herman g ( P� g) I ( P g (http://hol.cfa.org/) I Secure CFA (https://secure.cfa.org) I Catalog (http://catalog.cfa.org) I FAQs About CRMboutCFA/FAQs.aspx) I Cor&eVoAboutCFA/Contacts.aspx) I Home (/Home.aspx) (Http://Www.cfa.org/AboutCFA.aspx)(Http:// Www.cfa.org/Breeds.aspx) Shows Registration (Http://Www.cfa.org/Shows.aspx) (Http://Www.cfa. org/Registration.aspx) Owners Breeders (Http://Www.cfa.org/Owners.aspx)(Http://Www.cfa.org/Breeders.aspx) Legislative Exhibitors (Http://Www.cfa.orgILegislativelLegislativeGroup.aspx)(Http://Www.cfa.org/Exhibitors.aspx) (/Breeds/BreedsAB/Bengal.aspx) Page 70 of 158 http://www.cfa.orgBreeds/BreedsABBengal.aspx 12/7/2018 Breed Profile: The Bengal Page 2 of 6 About the Bengal Loved by those who appreciate its inquisitive and loving nature, the Bengal is a medium to large domestic cat most renowned for its richly colored, highly contrasted coat of vivid spots or distinctive marbling. The Bengal is the only domestic cat breed that can have rosettes like the markings on Leopards, Jaguars and Ocelots. Bengals are generally confident and devoted companions. They get along well with other pets when properly introduced and enjoy being part of a family. Active and interactive, Bengals are curious and athletic and maintain a kitten -like energy and attitude well into their senior years. These affectionate cats engage their owners in play, learn tricks, learn house -rules, or just like to be close. Some Bengals are generally talkative while others prefer to wait for the right time to communicate. Many Bengal Cats have an affinity for water and will enjoy watching you brush your teeth, while others are keen to join you in the shower. The charm of the Bengal personality may only be eclipsed by its beauty. While the most recognized color and pattern is the brown spotted or rosetted tabby (which is reminiscent of a Leopard -like color and pattern) Bengals come in two basic pattern flows: the spotted/rosetted and the marbled. The marbled pattern looks more like the extended blur of a Clouded Leopard's markings. Many people are captivated by the wild expression on a cuddly kitten that comes from the distinctive tabby facial markings and large oval, nocturnal eyes. The highly contrasted markings appear in all Bengals no matter the pattern and color, even in the seal lynx point or black silver tabby with their "snow leopard" Page 71 of 158 http://www.cfa.orgBreedsBreedsABBengal.aspx 12n/2ol8 Breed Profile: The Bengal Page 3 of 6 appearances. While most Bengals have green, yellow or gold eyes, the lynx points have blue eyes and the minks have aqua eyes. Some Bengals have "glitter," a sparkle at the tips of the hairs visible when the light catches them. To mimic the look of a wild cat, Bengals have wide noses with prominent nose leather (the skin on the tip of the nose), and the muzzle is completed with prominent whisker pads. With too many color and pattern combinations to fully describe here, it is safe to say that everyone will have their favorite and there are enough varieties to tickle each person's fancy. But wait until you feel a Bengal. First, you will encounter the pelt -like plush coat that is like the coat on no other domestic cat. Ranging from rabbit -like softness to the resilience of the densest hand -tied rug, the Bengal fur is an unexpected treat. Underneath that plush, patterned coat, Bengals are well -muscled -even the females, which are smaller than the males -with long bodies and thick tails to provide balance. Observing the Bengal Cat in motion is the best way to appreciate its unique combination of strength and elegance. More like a basketball player than a gymnast, the grace of a Bengal cannot be denied when it is simply walking across the back of your sofa or getting ready to pounce on the teaser toy in interactive play. And yes, the Bengal can take a spectacular spill, just like that basketball player landing after an amazing dunk. Like all domestic cats, the Bengal Cat traces its origins to non-domestic ancestors. However today's domestic Bengal Cat comes only from breeding Bengals to other Bengals and requires no specialized care. You need only open a fashion or style Page 72 of 158 http://www.cfa.orgBreedsBreedsABBengal.aspx 12/7/2018 Breed Profile: The Bengal magazine to appreciate that throughout history there are indications of a profound human fascination with the large and small wild felines that inhabit the jungles and forest of the world. In 1963, jean S. Mill crossed the domestic cat with the Asian Leopard Cat, a spotted, five to twelve pound, shy non-domestic cat species from Asia. This was the first effort to use hybrid offspring to create a breed of domestic cat with the loving nature of the best fireside tabby and the striking look of Leopards, Ocelots and jaguars. The modern Bengal breed traces to cats bred by Mrs. Mill in the early 1980's. Page 4 of 6 When searching for your own Bengal companion, look for a breeder well versed in feline health, including genetic health, particularly as it applies to Bengals. Expect detailed questioning to help the breeder make a match between you and a Bengal cat or kitten. The breeder should expect your questions as well, and so do your breed research and approach breeders with your enthusiasm and thoughtful questions about the breed and feline care. Going to shows is a great way to see a variety of Bengal cats and meet breeders who can help you learn more. Breeders will usually allow their kittens to go to their new homes at between 12 and 16 weeks of age.For more information, please contact the Breed Council Secretary (/Breeds/BreedCouncils/BCSecretaries.aspx) for this breed. Bengal Links JRQR code breed tag (/Portals/0/documents/breed s/QRtags/Benga1.pdf) Breed Standard (/Portals/0/documents/breeds/standards/bengal.pdf) figBreed Presentation (/Portals/0/documents/judges-ce/Bengal.pdf) 19 Registration Rules (/Portals/0/documents/breed s/rules/benga1.pdf) Page 73 of 158 http://www.cfa.orgBreedsBreedsABBengal.aspx 12/7/2018 Ali --waWAM ?WAN s 1►" „ '� r lilt am*ts a�r11 �rlr IIw� � '� ..�. «•• n.n....,�....... ,,.. •�.r..,...r. �' �� .V $010 111t Ift It lt�rr was _ v , I b e I .fir �•� ���. r 1 �• el mr i1� ��r �J /r�•�J'��F�• j��r %✓`�A� ...�.v-.•.-..�.,w,. � Ana �.•..w._.—v,.. _d r° /f / r� •/rfx /1" yi _ e I AIR wAr W -?F Ak PA AID. "O *461%11 IPA MEM Allm I 1 160111114 mvil AH All A" 1 Commercial Dog and Cat Breeders (Supplement) 2 3 4 Data Privacy 5 6 13.643 Subd. 6. Animal premises data. (a) The following data collected and maintained by the Board of 7 Animal Health related to registration and identification of premises and animals under chapter 35, are 8 classified as private or nonpublic: (1) the names and addresses; (2) the location of the premises where 9 animals are kept; and (3) the identification number of the premises or the animal. 10 (b) Except as provided in section 347.58, subdivision 5, data collected and maintained by the Board of 11 Animal Health under sections 347.57 to 347.64 are classified as private or nonpublic. 12 (c) The Board of Animal Health may disclose data collected under paragraph (a) or (b) to any person, 13 agency, or to the public if the board determines that the access will aid in the law enforcement process or 14 the protection of public or animal health or safety. 15 16 17 Cruelty to Animals 18 19 343.20 Definitions. 20 Subdivision 1. Application. Except as otherwise indicated by the context, for purposes of sections 43.20 21 to 346.36, the terms defined in this section have the meanings given them. 22 Subd. 2. Animal. "Animal" means every living creature except members of the human race. 23 Subd. 3. Torture; cruelty. "Torture" or "cruelty" means every act, omission, or neglect which causes or 24 permits unnecessary or unjustifiable pain, suffering, or death. 25 Subd. 4. Impure milk. "Impure and unwholesome milk" means all milk obtained from diseased or 26 unhealthy animals, or from animals fed on any substance which is putrefied or fermented. 27 Subd. 5. Animal control officer. "Animal control officer" means an officer employed by or under contract 28 with an agency of the state, county, municipality, or other governmental subdivision of the state which is 29 responsible for animal control operations in its jurisdiction. 30 Subd. 6. Pet or companion animal. "Pet or companion animal" includes any animal owned, possessed 31 by, cared for, or controlled by a person for the present or future enjoyment of that person or another as a 32 pet or companion, or any stray pet or stray companion animal. 33 Subd. 7. Service animal. "Service animal" means an animal trained to assist a person with a disability. 34 Subd. 8. Substantial bodily harm. "Substantial bodily harm" means bodily injury which involves a 35 temporary but substantial disfigurement, or which causes a temporary but substantial loss or impairment 36 of the function of any bodily member or organ, or which causes a fracture of any bodily member to a 37 service animal or a pet or companion animal. 38 Subd. 9. Great bodily harm. "Great bodily harm" means bodily injury which creates a high probability of 39 death, or which causes serious permanent disfigurement, or which causes a permanent or protracted loss 40 or impairment of the function of any bodily member or organ, or other serious bodily harm to a service 41 animal or a pet or companion animal. 42 43 343.21 Overworking or mistreating animals; penalty. 44 Subdivision 1. Torture. No person shall overdrive, overload, torture, cruelly beat, neglect, or unjustifiably 45 injure, maim, mutilate, or kill any animal, or cruelly work any animal when it is unfit for labor, whether ,it 46 belongs to that person or to another person. 47 Subd. 2. Nourishment; shelter. No person shall deprive any animal over which the person has charge 48 or control of necessary food, water, or shelter. 49 Subd. 3. Enclosure. No person shall keep any cow or other animal in any enclosure without providing 50 wholesome exercise and change of air. 51 Subd. 4. Low feed. No person shall feed any cow on food which produces impure or unwholesome milk. 52 Subd. 5. Abandonment. No person shall abandon any animal. 53 Subd. 6. Temporary abandonment. No person shall allow any maimed, sick, infirm, or disabled animal 54 to lie in any street, road, or other public place for more than three hours after receiving notice of the 55 animal's condition. Commercial Dog and Cat Breeders - Supplement Page 1 Page 78 of 158 1 Subd. 7. Cruelty. No person shall willfully instigate or in any way further any act of cruelty to any animal 2 or animals, or any act tending to produce cruelty to animals. 3 Subd. 8. Caging. No person shall cage any animal for public display purposes unless the display cage is 4 constructed of solid material on three sides to protect the caged animal from the elements and unless 5 the horizontal dimension of each side of the cage is at least four times the length of the caged animal. 6 The provisions of this subdivision do not apply to the Minnesota State Agricultural Society, the Minnesota 7 State Fair, or to the county agricultural societies, county fairs, to any agricultural display of caged animals 8 by any political subdivision of the state of Minnesota, or to district, regional or national educational 9 livestock or poultry exhibitions. The provisions of this subdivision do not apply to captive wildlife, the 10 exhibition of which is regulated by section97A.041. 11 Subd. 8a. Harming a service animal. No person shall intentionally and without justification do 12 either of the following to a service animal while it is providing service or while it is in the custody of 13 the person it serves: (1) cause bodily harm to the animal; or (2) otherwise render the animal unable 14 to perform its duties. 15 Subd. 9. Penalty. (a) Except as otherwise provided in this subdivision, a person who fails to comply with 16 any provision of this section is guilty of a misdemeanor. A person convicted of a second or subsequent 17 violation of subdivision 1 or 7 within five years of a previous violation of subdivision 1 or 7 is guilty of a 18 gross misdemeanor. 19 (b) A person who intentionally violates subdivision 1 or 7 where the violation results in substantial bodily 20 harm to a pet or companion animal may be sentenced to imprisonment for not more than one year or to 21 payment of a fine of not more than $3,000, or both. 22 (c) A person convicted of violating paragraph (b) within five years of a previous gross misdemeanor or 23 felony conviction for violating this section may be sentenced to imprisonment for not more than two years 24 or to payment of a fine of not more than $5,000, or both. 25 (d) A person who intentionally violates subdivision 1 or 7 where the violation results in death or great 26 bodily harm to a pet or companion animal may be sentenced to imprisonment for not more than two years 27 or to payment of a fine of not more than $5,000, or both. 28 (e) A person who violates subdivision 8a where the violation renders the service animal unable to 29 perform its duties is guilty of a gross misdemeanor. 30 (f) A person who violates subdivision 8a where the violation results in substantial bodily harm to a service 31 animal may be sentenced to imprisonment for not more than two years or to payment of a fine of not 32 more than $5,000, or both. 33 (g) A person who intentionally violates subdivision 1 or 7 where the violation results in substantial bodily 34 harm to a pet or companion animal, and the act is done to threaten, intimidate, or terrorize another 35 person, may be sentenced to imprisonment for not more than two years or to payment of a fine of not 36 more than $5,000, or both. 37 (h) A person who violates subdivision 8a where the violation results in death or great bodily harm to a 38 service animal may be sentenced to imprisonment for not more than four years or to payment of a fine of 39 not more than $10,000, or both. 40 (i) A person who intentionally violates subdivision 1 or 7 where the violation results in death or great 41 bodily harm to a pet or companion animal, and the act is done to threaten, intimidate, or terrorize another 42 person, may be sentenced to imprisonment for not more than four years or to payment of a fine of not 43 more than $10,000, or both. 44 Subd. 9a. Harm to service animals; mandatory restitution and civil remedies. (a) The court 45 shall order a person convicted of violating subdivision 8a to pay restitution for the costs and 46 expenses resulting from the crime. Costs and expenses include, but are not limited to, the service 47 animal user's loss of income, veterinary expenses, transportation costs, and other expenses of 48 temporary replacement assistance services, and service animal replacement or retraining costs 49 incurred by a school, agency, or individual. If the court finds that the convicted person is indigent, 50 the court may reduce the amount of restitution to a reasonable level or order it paid in installments. 51 (b) This section does not preclude a person from seeking any available civil remedies for an act that 52 violates subdivision 8a. 53 Subd. 10. Restrictions. If a person is convicted of violating this section, the court shall require that pet or 54 companion animals that have not been seized by a peace officer or agent and are in the custody or 55 control of the person must be turned over to a peace officer or other appropriate officer or agent unless 56 the court determines that the person is able and fit to provide adequately for an animal. If the evidence Commercial Dog and Cat Breeders - Supplement Page 2 Page 79 of 158 I indicates lack of proper and reasonable care of an animal, the burden is on the person to affirmatively 2 demonstrate by clear and convincing evidence that the person is able and fit to have custody of and 3 provide adequately for an animal. The court may limit the person's further possession or custody of pet or 4 companion animals, and may impose other conditions the court considers appropriate, including, but not 5 limited to: (1) imposing a probation period during which the person may not have ownership, custody, or 6 control of a pet or companion animal; (2) requiring periodic visits of the person by an animal control officer 7 or agent appointed pursuant to section 343.01, subdivision 1; (3) requiring performance by the person of 8 community service; and (4) requiring the person to receive psychological, behavioral, or other counseling. 9 10 343.24 Cruelty in transportation. 11 Subdivision 1. Penalty. Any person who does any of the following is guilty of a misdemeanor: (a) carries 12 or causes to be carried, any live animals upon any vehicle or otherwise, without providing suitable racks, 13 cars, crates, or cages in which the animals can both stand and lie down during transportation and while 14 awaiting slaughter; 15 (b) except as provided in subdivision 2, paragraph (a), carries or causes to be carried, upon a vehicle or 16 otherwise, any live animal having feet or legs tied together, or in any other cruel or inhumane manner; 17 (c) transports or detains livestock in cars or compartments for more than 28 consecutive hours without 18 unloading the livestock in a humane manner into properly equipped pens for rest, water, and feeding for a 19 period of at least five consecutive hours, unless requested to do so as provided in subdivision 2, 20 paragraph (b), or unless prevented by storm or unavoidable causes which cannot be anticipated or 21 avoided by the exercise of due diligence and foresight; or 22 (d) permits livestock to be crowded together without sufficient space to stand, or so as to overlie, crush, 23 wound, or kill each other. 24 Subd. 2. Exceptions. (a) A person may carry or cause to be carried, upon a vehicle or otherwise, a 25 cloven-hoofed animal having legs tied together, if: (1) the person transporting the animal is the animal's 26 owner or an employee or agent of the owner; (2) the animal weighs 250 pounds or less; (3) the tying is 27 done in a humane manner and is necessary for the animal's safe transport; and (4) the animal's legs are 28 tied for no longer than one-half hour. 29 (b) A person or corporation engaged in transporting livestock may confine livestock for 36 consecutive 30 hours if the owner or person with custody of that particular shipment of livestock requests in writing that 31 an extension be allowed. That written request shall be separate from any printed bill of lading or other 32 railroad form. 33 34 343.27 Poisoning animals. 35 Any person who unjustifiably administers any poisonous, or noxious drug or substance to any animal, or 36 procures or permits it to be done, or unjustifiably exposes that drug or substance with intent that the drug 37 be taken by any animal, whether the animal is the property of the person or another, is guilty of a gross 38 misdemeanor. 39 40 343.28 Animal with infectious disease. 41 An owner or person having charge of any animal who knows the animal has any infectious or contagious 42 disease, or knows the animal has recently been exposed to an infectious or contagious disease, who 43 sells or barters the animal, or knowingly permits the animal to run at large or come into contact with any 44 other animal, or with another person without that person's knowledge and permission shall be guilty of a 45 misdemeanor. 46 47 343.31 Animal fights and possession of fighting animals. 48 Subdivision 1. Penalty for animal fighting; attending animal fight. (a) Whoever does any of the 49 following is guilty of a felony: (1) promotes, engages in, or is employed in the activity of cockfighting, 50 dogfighting, or violent pitting of one pet or companion animal as defined in section 346.36, subdivision 6, 51 against another of the same or a different kind; (2) receives money for the admission of a person to a 52 place used, or about to be used, for that activity; (3) willfully permits a person to enter or use for that 53 activity premises of which the permitter is the owner, agent, or occupant; or (4) uses, trains, or possesses 54 a dog or other animal for the purpose of participating in, engaging in, or promoting that activity. 55 (b) Whoever purchases a ticket of admission or otherwise gains admission to the activity of cockfighting, Commercial Dog and Cat Breeders - Supplement Page 3 Page 80 of 158 1 dogfighting, or violent pitting of one pet or companion animal as defined in section 346.36, subdivision 6, 2 against another of the same or a different kind is guilty of a gross misdemeanor. 3 (c) Whoever possesses any device or substance with intent to use or permit the use of the device or 4 substance to enhance an animal's ability to fight is guilty of a gross misdemeanor. 5 (d) This subdivision shall not apply to the taking of a wild animal by hunting. 6 Subd. 2. Presumption of training a fighting dog. There is a rebuttable presumption that a dog has been 7 trained or is being trained to fight if: (1) the dog exhibits fresh wounds, scarring, or other indications that 8 the dog has been or will be used for fighting; and (2) the person possesses training apparatus, 9 paraphernalia, or drugs known to be used to prepare dogs to be fought. This presumption may be 10 rebutted by a preponderance of the evidence. 11 Subd. 3. Presumption of training fighting birds. There is a rebuttable presumption that a bird has been 12 trained or is being trained to fight if. (1) the bird exhibits fresh wounds, scarring, or other indications that 13 the bird has been or will be used for fighting; or (2) the person possesses training apparatus, 14 paraphernalia, or drugs known to be used to prepare birds to be fought. This presumption may be 15 rebutted by a preponderance of the evidence. 16 Subd. 4. Peace officer duties. Animals described in subdivisions 2 and 3 are dangerous weapons and 17 constitute an immediate danger to the safety of humans. A peace officer or animal control authority may 18 remove, shelter, and care for an animal found in the circumstances described in subdivision 2 or 3. If 19 necessary, a peace officer or animal control authority may deliver the animal to another person to be 20 sheltered and cared for. In all cases, the peace officer or animal control authority must immediately notify 21 the owner, if known, as provided in subdivision 5. The peace officer, animal control authority, or other 22 person assuming care of the animal shall have a lien on it for the actual cost of care and keeping of the 23 animal. If the owner or custodian is unknown and cannot by reasonable effort be ascertained, or does not, 24 within ten days after notice, redeem the animal by paying the expenses authorized by this subdivision, the 25 animal may be disposed of as provided in subdivision 5. 26 Subd. 5. Disposition. (a) An animal taken into custody under subdivision 4 may be humanely disposed of 27 at the discretion of the jurisdiction having custody of the animal ten days after the animal is taken into 28 custody, if the procedures in paragraph (c) are followed. 29 (b) The owner of an animal taken into custody under subdivision 4 may prevent disposition of the animal 30 by posting security in an amount sufficient to provide for the actual costs of care and keeping of the 31 animal. The security must be posted within ten days of the seizure inclusive of the date of the seizure. If, 32 however, a hearing is scheduled within ten days of the seizure, the security amount must be posted prior 33 to the hearing. 34 (c) (1) The authority taking custody of an animal under subdivision 4 must give notice of this section by 35 delivering or mailing it to the owner of the animal, posting a copy of it at the place where the animal is 36 taken into custody, or delivering it to a person residing on the property and telephoning, if possible. The 37 notice must include: (i) a description of the animal seized; the authority and purpose for the seizure; the 38 time, place, and circumstances under which the animal was seized; and the location, address, and 39 telephone number of a contact person who knows where the animal is kept; (ii) a statement that the 40 owner of the animal may post security to prevent disposition of the animal and may request a hearing 41 concerning the seizure and impoundment and that failure to do so within ten days of the date of the notice 42 will result in disposition of the animal; and (iii) a statement that all actual costs of the care, keeping, and 43 disposal of the animal are the responsibility of the owner of the animal, except to the extent that a court or 44 hearing officer finds that the seizure or impoundment was not substantially justified by law. The notice 45 must also include a form that can be used by a person claiming an interest in the animal for requesting 46 a hearing. (2) The owner may request a hearing within ten days of the date of the seizure. If requested, 47 a hearing must be held within five business days of the request to determine the validity of the 48 impoundment. The municipality taking custody of the animal or the municipality from which the animal 49 was seized may either (i) authorize a licensed veterinarian with no financial interest in the matter or 50 professional association with either party, or (ii) use the services of a hearing officer to conduct the 51 hearing. An owner may appeal the hearing officer's decision to the district court within five days of the 52 notice of the decision. (3) The judge or hearing officer may authorize the return of the animal if the judge 53 or hearing officer finds that (i) the animal is physically fit, (ii) the person claiming an interest in the animal 54 can and will provide the care required by law for the animal, and (iii) the animal has not been used for 55 violent pitting or fighting. (4) The person claiming an interest in the animal is liable for all actual costs of 56 care, keeping, and disposal of the animal, except to the extent that a court or hearing officer finds that the Commercial Dog and Cat Breeders - Supplement Page 4 Page 81 of 158 I seizure or impoundment was not substantially justified by law. The costs must be paid in full or a mutually 2 satisfactory arrangement for payment must be made between the municipality and the person claiming an 3 interest in the animal before the return of the animal to the person. 4 Subd. 6. Photographs. (a) Photographs of animals seized during an investigation are competent 5 evidence if the photographs are admissible into evidence under all the rules of law governing the 6 admissibility of photographs into evidence. A satisfactorily identified photographic record is as admissible 7 in evidence as the animal itself. 8 (b) A photograph must be accompanied by a written description of the animals seized, the name of the 9 owner of the animals seized, the date of the photograph, and the name, address, organization, and 10 signature of the photographer. 11 Subd. 7. Veterinary investigative report.(a) A report completed by a Minnesota licensed veterinarian 12 following an examination of an animal seized during an investigation is competent evidence. A 13 satisfactorily identified veterinary investigative report is as admissible in evidence as the animal itself. (b) 14 The veterinary investigative report may contain a written description of the animal seized, the medical 15 evaluation of the physical findings, the prognosis for recovery, and the date of the examination and must 16 contain the name, address, veterinary clinic, and signature of the veterinarian performing the 17 examination. 18 19 343.37 Decompression chambers prohibited. 20 A person may not use a decompression chamber to destroy an animal. A violation of this section is a 21 misdemeanor. 22 23 343.40 Dog houses. 24 Subdivision 1. In general. A person in charge or control of any dog which is kept outdoors or in an 25 unheated enclosure shall provide the dog with shelter and bedding as prescribed in this section as a 26 minimum. 27 Subd. 2. Building specifications. The shelter shall include a moistureproof and windproof structure of 28 suitable size to accommodate the dog and allow retention of body heat. It shall be made of durable 29 material with a solid, moisture-proof floor or a floor raised at least two inches from the ground. Between 30 November 1 and March 31 the structure must have a windbreak at the entrance. The structure shall be 31 provided with a sufficient quantity of suitable bedding material consisting of hay, straw, cedar shavings, 32 blankets, or the equivalent, to provide insulation and protection against cold and dampness and promote 33 retention of body heat. 34 Subd. 3. Shade. Shade from the direct rays of the sun, during the months of May to October shall be 35 provided. 36 Subd. 4. Farm dogs. In lieu of the requirements of subdivisions 2 and 3, a dog kept on a farm may be 37 provided with access to a barn with a sufficient quantity of loose hay or bedding to protect against cold 38 and dampness. 39 Subd. 5. Zoning. All shelters required by this section shall be subject to all building or zoning regulations 40 of any city, township, county, or state. 41 Subd. 6. Penalty. Whoever violates the provisions of this section is guilty of a petty misdemeanor. 42 43 44 Pet and Companion Animal Welfare Act 45 46 346.35 Citation. 47 Sections 346.35 to 346.44 may be cited as the "Pet and Companion Animal Welfare Act." 48 49 346.36 Definitions. 50 Subdivision 1. Scope. Sections 346.35 to 346.44 shall only apply to veterinarians, animal boarding 51 facilities, and commercial animal facilities. As used in sections 346.35 to 346.44 the terms defined in this 52 section have the meanings given them. 53 Subd. 2. Abuse. "Abuse" means intentionally causing unnecessary pain, injury, suffering, or harassment 54 to a pet or companion animal. 55 Subd. 3. Cruelty. "Cruelty" means causing or allowing unnecessary pain, suffering, or unjustlfiable injury 56 or death to a pet or companion animal. Commercial Dog and Cat Breeders - Supplement Page 5 Page 82 of 158 1 Subd. 4. Expert opinion. "Expert opinion" means the opinion of at least one licensed Minnesota 2 veterinarian selected by an investigating officer. 3 Subd. 5. Neglect. "Neglect" means failure to provide the minimum care required for the health and well - 4 being of a pet or companion animal. 5 Subd. 6. Pet or companion animal. "Pet" or "companion animal" means a nonhuman mammal, bird, or 6 reptile impounded or held for breeding, or possessed by, cared for, or controlled by a person for the 7 present or future enjoyment of that person or another. 8 Subd. 7. Shelter; confinement area. "Shelter" or "confinement area" means an enclosure provided to 9 protect or confine a pet or companion animal when it is not in transit. 10 11 346.37 General provisions. 12 Subdivision 1. Abandoned animals. (a) If an animal is left with a veterinarian, boarding facility, or 13 commercial facility pursuant to a written agreement with the owner or person in possession of the animal 14 and the owner or lawful possessor of the animal has not claimed the animal within ten days after notice in 15 accordance with paragraph (b) or (d), the animal is abandoned and the owner has no further rights or 16 claim to the animal. 17 (b) The notice required under paragraph (a), must be given by the veterinarian, boarding facility, or 18 commercial facility to the owner or the owner's agent at the person's last known address by certified mail, 19 return receipt requested, or may be served upon the owner or owner's agent in the manner that a 20 summons is served in a civil court action in the district courts. The notice must notify the owner or 21 owner's agent that the animal may be redeemed by paying all prior expenses incurred within ten days or 22 the animal is abandoned and will be disposed of in accordance with this subdivision. 23 (c) If the animal is not claimed within ten days, the veterinarian, boarding facility, or commercial facility 24 becomes the owner of the animal and the animal may be disposed of by the veterinarian, boarding 25 facility, or commercial facility as they consider proper. Upon the veterinarian, boarding facility, or 26 commercial facility becoming the owner of the animal, the veterinarian, boarding facility, or commercial 27 facility is relieved of any liability for disposal of the animal. 28 (d) If the notice under paragraph (c) is not given to the owner or owner's agent, or if the address of the 29 owner or owners agent is not known, notice must be given by the veterinarian, boarding facility, or 30 commercial facility by publishing one notice in a legal newspaper circulated in the county where the 31 animal was delivered to the veterinarian, boarding facility, or commercial facility not less than ten days 32 before the animal is to become the property of the veterinarian, boarding facility, or commercial facility 33 under paragraph (c). The published notice must contain the information required in paragraph (b). 34 (e) Each veterinarian, boarding facility, or commercial facility shall warn its patrons of the provisions of 35 this subdivision by a conspicuously posted notice or by conspicuous type in a written document delivered 36 to the owner or the owner's agent. 37 Subd. 2. Good Samaritans. A person is not liable for rendering humane assistance to an injured pet or 38 companion animal. 39 Subd. 3. Cruel training or handling. A person may not inflict cruelty on a pet or companion animal by 40 the use of a cruel training or handling device or method. 41 Subd. 4. Health care. Adequate health care, including parasite and pest control, must be provided to 42 each pet or companion animal. 43 Subd. 5. Interpretation of terms. A dispute as to the meaning of "abuse," "cruelty," or "neglect" shall be 44 resolved by an expert opinion. 45 Subd. 6. Reports of abuse, cruelty, or neglect. A veterinarian must report known or suspected cases 46 of abuse, cruelty, or neglect to peace officers and humane agents as provided in 343.12 and 343.29. 47 48 346.39 Dogs and cats. 49 Subdivision 1. Food. Dogs and cats must be provided with food of sufficient quantity and quality to allow 50 for normal growth or the maintenance of body weight. Feed standards shall be those recommended by 51 the National Research Council. 52 Subd. 2. Water. Dogs and cats must be provided with clean, potable water in sufficient quantity to satisfy 53 the animal's needs or supplied by free choice. Snow or ice is not an adequate water source. 54 Subd. 3. Transportation and shipment. When dogs or cats are transported in crates or containers, the 55 crates or containers must be constructed of nonabrasive wire or a smooth, durable material suitable for Commercial Dog and Cat Breeders - Supplement Page 6 Page 83 of 158 1 the animals. Crates and containers must be clean, adequately ventilated, contain sufficient space to 2 allow the animals to turn around, and provide maximum safety and protection to the animals. Exercise 3 for 20 to 30 minutes and water must be provided at least once every eight hours. Food must be provided 4 at least once every 24 hours or more often, if necessary, to maintain the health and condition of the 5 animals. 6 Subd. 4. Shelter size. A confinement area must provide sufficient space to allow each animal to turn 7 about freely and to easily stand, sit, and lie in a normal position. Each confined animal must be provided 8 a minimum square footage of floor space as measured from the tip of its nose to the base of its tail, plus 9 25 percent, expressed in square feet. The formula for computing minimum square footage is: (length of 10 animal plus 25 percent) times (length of animal plus 25 percent), divided by 144. A shaded area must be 11 provided sufficient to protect the animal from the direct rays of the sun at all times during the months of 12 May to October. 13 Subd. 5. Exercise. All dogs and cats must be provided the opportunity for periodic exercise, either 14 through free choice or through a forced work program, unless exercise is restricted by a licensed 15 veterinarian. 16 Subd. 6. Group housing and breeding. Animals housed together must be kept in compatible groups. 17 Animals must not be bred so often as to endanger their health. 18 Subd. 7. Temperature. Confinement areas must be maintained at a temperature suitable for the animal 19 involved. 20 Subd. 8. Ventilation. An indoor confinement area must be ventilated. Drafts, odors, and moisture 21 condensation must be minimized. Auxiliary ventilation, such as exhaust fans, vents, and air conditioning, 22 must be used when the ambient temperature rises to a level that may endanger the health of the 23 animal. 24 Subd. 9. Lighting. An indoor confinement area must have at least eight hours of illumination sufficient to 25 permit routine inspection and cleaning. 26 Subd. 10. Confinement and exercise area surfaces. Where applicable, the interior surfaces of 27 confinement and exercise areas, including crates or containers, must be constructed and maintained so 28 that they are substantially impervious to moisture and may be readily cleaned. They must protect the 29 animal from injury and be kept in good repair. 30 Subd. 11. Drainage. Where applicable, a suitable method must be used to rapidly eliminate excess fluids 31 from confinement areas. 32 Subd. 12. Sanitation. Food and water receptacles must be accessible to each animal and located so as 33 to minimize contamination by excreta. Feeding and water receptacles must be kept clean. Disposable 34 food receptacles must be discarded when soiled. Measures must be taken to protect animals from being 35 contaminated with water, wastes, and harmful chemicals. Wastes must be disposed of property. Where 36 applicable, flushing methods and a disinfectant must be used periodically. Bedding, if used, must be kept 37 clean and dry. Outdoor enclosures must be kept clean and base material replaced as necessary. 38 Commercial Dog and Cat Breeders - Supplement Page 7 Page 84 of 158 krw1kric" #0 601 AN ORDINANCE REGULATING DOGS AND CATS WITHIN THE CITY, INCLUDING THE KEEPING THEREOF AND PROVIDING FOR THEIR LICENSING THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA, DOES ORDAIN: Sec. 601.01 Definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. A. "Abandoned" means to leave a dog or cat at large within the City without intending to return to or recover it. It shall also mean to purposefully leave a dog or cat in the possession of the Animal Warden to avoid paying impoundment and/or boarding costs. B. "Altered" means any female dog or cat that has been spayed or any male dog or cat that has been castrated. C. "Animal Control Officer" means the City Council and/or any persons or agencies designated by the City Council. D. "Animal Warden" means any person or agency designated by the City Council to house, hold, confine, or board dogs or cats seized and/or impounded herein. The Animal Warden shall be appointed and serve at the pleasure of the City Council. The Animal Warden shall also be construed to include the City Police Department and any other law enforcement agency routinely engaged in law enforcement within the City. E. "At Large" means off the premises of the owner and not under control by leash affixed to the dog's collar, designed or that type of animal, and held by the owner or other person entrusted to have custody of the animal off the owner's premises. F. "Bona Fide Livestock" operation means a farm (of forty (40) acres or more in size) on which horses, cows, swine, poultry, sheep, goats, or other common farm animals are kept, raised bred, or sold as a part of a business enterprise. G. "Cat" means any animal wholly or in part of the species Felis Domesticus. H. "Dog" means any animal wholly or in part of the species Canis Familiaris. I. "Commercial Kennel" means a kennel where dogs are bred and/or sold for re -sale, individually or in litter lots, whether or not any of these animals Page 85 of 158 are also kept for personal use and where the business may be a primary source of income. Commercial kennels are also places where dogs are boarded, groomed, or trained for a fee. J. "Dangerous Dog" and "Potentially Dangerous Dog" have the meaning ascribed to those terms by M. S. §347.50, and specifically as follows: 1. "Dangerous Dog" means any dog that has: a. Without provocation, inflicted substantial bodily harm on a human being on public or private property; b. Killed a domestic animal without provocation while off the owner's property; or, C. Been found to be potentially dangerous, and after the owner has noticed that the dog is potentially dangerous, the dog aggressively bites, attacks, or endangers the safety of humans or domestic animals. 2. "Potentially Dangerous Dog" means any dog that: a. When unprovoked, inflicts bites on a human or domestic animal on public or private property; b. When unprovoked, chases or approaches a person upon the streets, sidewalks, or any public property in an apparent attitude of attack; or, C. Has a known propensity, tendency, or disposition to attack, unprovoked, causing injury or otherwise threatening the safety of humans or domestic animals. The terms "Dangerous Dog" and "Potentially Dangerous Dog" shall also be construed to include similar classifications from other statutes or ordinances which are substantially in conformity with Minnesota Statutes §347.50, whether or not the same words are used. K. "Hobby Kennel" means a kennel where dogs are kept primarily for personal companionship, for recreational use, or for performance events in addition to the purpose of improving the physical soundness and temperament of such dogs, and where the breeding and selling of animals is incidental to occupancy of the premises for residential purposes, and is not a primary source of income. Page 86 of 158 L. "Kennel" means any place where three (3) dogs or more (or up to the number of dogs permitted as an accessory use within the City's Zoning Codes and within the limitations therein provided) over four (4) months of age are kept, raised, sold, boarded, bred, shown, treated, or groomed. M. "Owner" means any person or the parents or guardians of a person under eighteen (18) years of age who owns, harbors, keeps, or has custody of a dog or cat. N. "Person" means any individual, partnership, corporation, firm, or group, however organized. 601.02 Exemptions. Except where duties are expressly stated, this article does not apply to hospitals, clinics, and other premises operated by licensed veterinarians exclusively for the care and treatment of dogs or cats. 601.03 Animal Control Officer. The Animal Control Officer shall have police powers necessary for enforcement of this Chapter, including authority to issue complaints for violations. 601.04 Animal Warden. The City Council may appoint an Animal Warden and establish compensation for said position. Such person or agency shall serve at the pleasure of the City Council. The City Council shall annually review the work and compensation of the Animal Warden. No person or agency shall be appointed Animal Warden unless that person or agency has a microchip scanner for use in the identification of animals using such means of identification. 601.05 Interference with Enforcement. No unauthorized person shall break open the Animal Warden's pound or attempt to do so, or to take or let out any animals therefrom, or to take or attempt to take from any Animal Control Officer or Animal Warden any dog or cat taken up by him in compliance with the City ordinance or statute, or in any manner to interfere with or hinder such officer or warden in the discharge of their duties. 601.06 Dog or Cat License. A. No person shall own, keep, or harbor any dog or cat of more than six (6) months of age without first securing a license from the City Clerk, who shall keep a record of all licenses issued and shall issue a durable identification tag for such licenses. Upon receipt of an application reciting the name and address of the owner, the address where the dog or cat will be kept, and the sex, breed, age, color, and markings of the dog or cat for which a license is sought, and upon payment of the license fee established by resolution, the City Clerk shall issue a license in the form of a metal identification tag for each animal. Page 87 of 158 B. The terms of a license shall run concurrently with a dog's or cat's rabies vaccination schedule. Specifically, a dog or cat license expires (and must be renewed) when a new rabies vaccination is needed. Failure to renew the license within thirty (30) days of a new rabies vaccination will result in a late license penalty fee being owed to the City in the amount established by resolution. C. Failure to purchase a license within sixty (60) days of establishing residence in the City, within sixty (60) days of acquiring a dog or cat, or within sixty (60) days of a dog or cat reaching the age of six (6) months during any calendar year will result in the late license penalty fee being owed to the City. D. Dog or cat licenses are not required for dogs or cats that are kept in the City for thirty (30) days or fewer. Such dogs or cats shall be known as "visiting dogs" or "visiting cats". Visiting dogs or cats must be kept in an enclosure or on a leash at all times. 601.07 Reserved For Future Use. 601.08 Kennels. It shall be unlawful to operate any kennel unless a permit to operate the same has been secured from the City Council in advance. 601.09 Rabies Inoculation of Dogs and Cats. A. All dogs and cats in the City over the age of six (6) months shall be inoculated for rabies and shall be re -inoculated according to standard veterinary practices thereafter. Such vaccination must be performed by or under the direct supervision of a veterinarian duly licensed to practice veterinary medicine in the state in which the vaccine is administered. A certificate from the veterinarian inoculating said dogs or cats shall be exhibited to the Animal Control Officer upon demand, and will be required as written proof of such vaccination at the time a dog or cat license is obtained from the City. B. Each dog or cat shall wear a sturdy collar for aid in identification with the veterinarian's metal tag showing proof of said current rabies vaccination. At the owner's discretion, a tattoo or implanted microchip may be used in lieu of the collar and tag if the tattoo and chip identification numbers are placed on file at the City at the time of license application. 601.10 Animal Bites and Animals Exposed to Rabies. A. Any law enforcement officer or the Animal Control Officer may enter upon the private property of any person while in pursuit of any dog or cat under probable cause to believe that such dog or cat has bitten a person or animal, or that such dog or cat is rabid. Page 88 of 158 B. Subsection (A) notwithstanding, whenever any person who owns, possesses, or harbors any dog or cat within the City learns that the dog or cat has bitten any human being, such person shall immediately quarantine such dog or cat for a period of at least ten (10) days, keeping it apart from other animals until it is determined whether the dog or cat has rabies. The quarantine may be by the person owning the dog or cat if such dog or cat has a current license and rabies vaccination at the time the bite occurred. If the dog or cat does not have a current license and rabies vaccination at the time the bite occurred, the dog or cat must be impounded at a licensed pound or with a licensed veterinarian at the owner's expense. After the required ten (10) day quarantine, the dog or cat shall be examined by a licensed veterinarian to insure that there are no clinical signs of rabies. If the dog or cat is found to be rabid, it shall be humanely euthanized. C. If the dog or cat owner cannot be located or advised of the dog or cat bite within two (2) hours of the occurrence, or if the owner fails to quarantine the dog or cat as required by this Ordinance, the Animal Control Officer or Animal Warden shall cause the dog or cat to be impounded and so quarantined. After the required ten (10) day quarantine, if the dog or cat is still unclaimed, the dog or cat shall be humanely euthanized and tested for rabies; if claimed, the dog or cat shall be examined by a licensed veterinarian to insure there are no clinical signs of rabies. If no signs of rabies are observed, the dog or cat can be released to the owner as specified in Section 601.18 of this Ordinance. If the dog or cat is found to be rabid, it shall be humanely euthanized. D. The Animal Warden, Animal Control Officer, or other designate of the City shall have the authority to verify if the dog or cat is properly quarantined. Any veterinarian quarantining an animal shall notify the Animal Warden before the release of such animal. E. Any dog or cat to have been bitten by a rabid dog or cat or to have been exposed to rabies shall be impounded. If, however, the dog or cat is at large and cannot be apprehended after reasonable effort, the dog or cat may be immediately destroyed. After impoundment, if proof of rabies immunization is furnished and booster injections are given by a licensed veterinarian at the expense of the owner, the dog or cat may be released to the owner as specified in Section 601.18 of this Ordinance. If it cannot be proven that the animal has a current rabies immunization, the owner may, at his discretion, make provision for a suitable quarantine for a period of not less than six (6) months. 601.11 Running at Large Prohibited. A. No person shall allow a dog or cat to run at large at any time. All dogs and cats off the premises of the owner must be under restraint by leash, designed for that type of animal, affixed to the animal's collar and held by the owner or other person entrusted to have custody of the animal off the Page 89 of 158 owner's premises. Every owner or custodian of a dog or cat must exercise reasonable care and take all necessary steps and precautions to protect other people, property, and animals from injuries or damage which might results from the dog's behavior, regardless of whether such behavior is motivated by playfulness or ferocity. B. Subsection (A) notwithstanding, this provision shall not apply to dogs used as a necessary element of a bona fide livestock operation. Dogs used in bona fide livestock operations shall be issued license tags of a different color than regular licensed dogs. Said tags shall be called "farm dog licenses" and shall be worn at all times. C. No person shall apply for a farm dog license unless their dog(s) is(are) a necessary element of a bona fide livestock operation. 601.12 Abandonment Prohibited. No person shall abandon any dog or cat within the City. 601.13 Nuisances. A. The following are public nuisances and unlawful: Any dog or cat that damages property (that is not the property of the owner), including plantings, lawns or structures, or that deposits fecal matter off of the owner's property that the owner fails to remove promptly. 2. Any dog or cat that, without provocation, chases, molests, or approaches pedestrians or bicyclists in a threatening manner upon the streets, sidewalks, right-of-way, or any public property, or habitually chases automobiles on the public streets or highways. 3. Any dog or cat that is kept under unsanitary and/or inhumane conditions such that the maintenance or keeping of the animal creates odors to the annoyance of the public in the vicinity. 4. Any dog or cat that kills or attacks another domestic animal or livestock without provocation while off the owner's property. 5. The owning, keeping, or harboring of any dog or cat which shall, by any noise, unreasonably and/or excessively disturb the peace and quiet of any person in the vicinity. The phrase "unreasonably and/or excessively disturb the peace and quiet" shall include, but is not limited to, the creation of any noise by a dog or cat which can be heard by any person, including an Animal Control Officer or law enforcement officer, from a location off the dog or cat owner's property where the dog or cat is being kept, and which noise occurs repeatedly over at least a five (5) minute period of time with Page 90 of 158 one (1) minute or less lapse of time between each animal noise during the five (5) minute period. This provision shall not apply to dogs or cats that are responding to trespassers or to dogs or cats that are teased or similarly provoked to bark or meow. B. Any person seeking immediate relief may, by telephone, notify the City Clerk, Animal Control Officer, or law enforcement officer of an alleged violation of this Ordinance. A telephone call does not, however, constitute a formal complaint to initiate the citation process. All formal complaints shall be submitted in writing to the attention of the City Clerk and shall describe the dog or cat, state the acts committed by the dog or cat, the name and address of the person owning or harboring the dog or cat, and the name and address of the person making the complaint. The City Clerk shall then promptly notify the person owning or harboring the dog or cat of the acts complained of, either by letter or door tag, and shall request that the nuisance be abated or eliminated within a specified time period. The City Clerk shall also cause the Animal Control Officer or law enforcement offer to investigate and file a report on the complaint. C. Upon receipt of a second complaint of a violation of this Ordinance, the City Clerk shall cause the Animal Control Officer or law enforcement officer to investigate and file a second report on the complaint. If the offense is corroborated by the investigation, the City Clerk shall, by certified letter, notify the person owning or harboring the dog or cat of the violations complained of, and require that the nuisance be abated or eliminated within twenty-four (24) hours or some other reasonable time specified in the letter. A copy of the letter shall be mailed to the Animal Control Officer and a copy shall be mailed to the person making the complaint. D. If the owner fails to take corrective action within twenty-four (24) hours (or within the time specified in the letter), the City Clerk shall contact the appropriate law enforcement agency and/or the City Attorney, inform them of the alleged violation, and request that the owner be cited. 601.14 Dangerous Doiz Provision. A. It shall be illegal for any person to own, keep, possess, or harbor any dog that has been declared a dangerous dog or potentially dangerous dog. This prohibition shall apply whether said declaration has occurred in the City or in some other jurisdiction. This prohibition shall also apply whether said declaration was made pursuant to M.S. §347.50 or pursuant to another statute or ordinance which is substantially similar to M.S. §347.50. If a dangerous dog or potentially dangerous dog has bitten a person, then the dog shall first be quarantined according to the provisions of Section 601.18. Following said quarantine period, then the provisions of paragraphs (2) and (3) shall apply. Page 91 of 158 2. The Animal Control Officer or law enforcement officer shall immediately seize and impound any dangerous dog or potentially dangerous dog that is found within the City. The dog will be kept no fewer than ten (10) calendar days. The owner has until the end of this time period to provide written verification that the dog will be legally removed from the City, or that the dog will be euthanized. The owner must pay all associated impounding and boarding costs prior to the release of the dog. Upon its release, the dog shall be immediately transported to a location outside the City. 3. Any such dog that is not properly claimed within ten (10) calendar days shall be humanely euthanized. The owner of the dog that is euthanized shall be responsible to pay the impounding, boarding, and euthanization costs. 4. The owner of any dog declared a "potentially dangerous dog" shall cause the removal of the dog from the City as outlined in 601.14 A. After a minimum of ten days following the removal of the dog, the owner may appeal to the City Administrator to again keep or maintain the dog in the City. Such appeal shall include the following: a. Provide in writing to the City the request to return the dog to the City. This letter must be signed (or cosigned) by the property owner. b. Provide veterinarian documentation on all required vaccinations being complete and up to date for such dog. c. Provide documentation that the dog (and any other dog or cat in the home) is duly licensed. d. Provide detailed third -party written certification that the dog has passed a "Canine Good Citizen" obedience training test and program as approved by the American Kennel Club; which must be taken (or retaken) after the "potentially dangerous dog" finding has been made. Such certification will include written and signed documentation showing the professional entity the examiner is representing along with proof of liability insurance. The examiner and certifying entity will attest that the dog has shown no signs of aggression or similar behavior, and the dog does not chase or otherwise leave the homeowners property or act in an aggressive manner. This certification Page 92 of 158 will include the credentials of the examiner from the AKC showing current standing and type of certification. e. Provide documentation from the property owner's insurance provider that such homeowner's (or other) policy does for liability purposes cover the dog residing in the residence. f. Provide a written signed statement that the dog has not been kept in the City during this appeal process. g. Provide a $50.00 fee payable to the City to the cover City costs for review of the appeal and its related elements. h. Provide verification that dog will be kept inside a fenced yard capable of containing the animal at all times while outside of the residence. Electronic control fences will not meet the criteria of this ordinance. If the dog is taken outside the home and fenced area or removed from the property within this City; the dog will be under control by static leash and muzzle by a person competent to control the animal. B. The City Administrator shall consider this submitted documentation and if all items are complete and in satisfactory condition, the City Administrator shall issue a written finding that the dog may be returned to the City. C. Should the dog subsequently be found as a potentially dangerous dog for a second event, the dog shall be removed from the City consistent with this ordinance and the City shall not afford a secondary appeal process to again return the dog to the City. D. Notwithstanding the provisions found in this Section, in all circumstances the dog, owner and property must be compliant with all other rules and ordinances of the City. E. This Section (601.14) shall not apply to police dogs under the control of a licensed law enforcement officer during the performance of official police activities. 601.15 Females in Heat. Every female dog or cat in heat shall be confined in a building or other secure enclosure in such manner that such female cannot come in contact with another dog or cat, respectively, except for the express purpose of planned breeding, and shall be controlled on a leash while being exercised. 601.16 Sanitation. Page 93 of 158 Any person who owns, keeps, or harbors any dog or cat is responsible to keep his property clean of all fecal matter from the dog or cat. All dog or cat waste shall be removed daily so as to keep the surrounding area free from obnoxious odors. 601.17 Appointing of an Animal Warden. The City Council may appoint an Animal Warden and establish compensation for said position. Such person shall serve at the pleasure of the City Council. The City Council shall annually review the work and compensation of the Animal Warden. 601.18 Seizure of Dogs and Cats — iMpounding. The Animal Warden, any law enforcement officer, the Animal Control Officer, or any other person may seize, impound, or restrain any dog or cat found running at large, any dog or cat without a veterinarian's metal tag attesting to its rabies vaccination and/or any dog or cat without its City license tag. Any person or officer (other than the Animal Warden) impounding or restraining such dog or cat shall immediately deliver the same to the Animal Warden. If the animal is collarless, the Animal Warden shall immediately ascertain whether the dog or cat has a tattoo or embedded microchip as a means of identification. The Animal Warden shall thereupon give notice of the impoundment to the owner or, if the owner is unknown, shall post notice of the impoundment at the City Hall (and at such other places as may be designated by the City Council). If such dog or cat is not claimed within ten (10) calendar days of such posted notice and all fees and charges paid, the Animal Warden shall place the dog or cat in the custody of a suitable person or shall humanely euthanize the animal. Any dog or cat restrained or impounded shall receive humane treatment and sufficient food, water, and shelter. 601.19 Impounding and Boarding Fees. A. The Animal Warden may charge such reasonable impounding fees for the care and board of any dog or cat restrained or impounded and any and all such fees imposed shall be paid to the Animal Warden at the time of reclamation of the dog or cat. The City Council shall annually review all fees so imposed by the Animal Warden to determine their reasonableness and may, by resolution, impose such additional fees reasonably related to the necessary and reasonable expenses incurred by the City for the capture, transportation, and/or care of impounded dogs or cats. All such fees must be paid to the Animal Warden prior to the release of the animal. The Animal Warden shall issue a receipt to the owner evidencing such payment. Additionally, the Animal Warden may not release any dog or cat until the owner provides written proof that the dog or cat is currently vaccinated against rabies and that the dog or cat has received a current license from the City. B. In the case where any dog or cat has -been impounded whose rabies vaccination and dog or cat license are not current, said dog or cat shall not be released unless the owner first obtains a City dog or cat license and Page 94 of 158 provides written evidence, from a licensed veterinarian, that arrangements have been made to have the dog or cat vaccinated upon its release. Any written evidence submitted pursuant to this provision shall be deemed inadmissible in any criminal court action against the owner of the dog or cat. 601.20 Coordination with Veterinarians. The City may enter into Agreements with veterinarians to assist in the administration of the provisions of this Ordinance. Said agreements shall insure that an orderly system is set up to coordinate the licensing, vaccination, impoundment, quarantine, and/or euthanization, as needed, of dogs or cats within the City. Said agreement shall also provide for a reasonable method of compensating veterinarians for the service that they provide to the City. 601.21 Constitutional If any portion of this Ordinance is for any reason held invalid or unconstitutional, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions thereof. 601.22 Penalty. Any person, firm or corporation violating any of the provisions of this Ordinance shall be guilty of a misdemeanor. 601.23 Effective Date. This Ordinance shall be in full force and effect from and after its passage and publication, according to law, and licenses required herein must be secured within thirty (30) days thereafter by persons owning, harboring, or keeping dogs or cats at the time of such passage and publication. 601.24 R eal. The former Chapter 601, dated October 28, 1997 is hereby repealed in its entirety and replaced by this Ordinance. Amended 11/11/2014 by the City Council as to Section E of 601.01 and Section A of 601.11 Amended 09/27/2016 by the City Council as to Section A through Section E of 601.14 Page 95 of 158 401.15.M. Home Occupations. 1. Purpose. The purpose of this Section is to maintain the character and intearity nf residential areas and to provide a means through the establishment of specific standards and procedures by which home occupations can be conducted in residential neighborhoods without jeopardizing the health, safety and general welfare of the surrounding neighborhood. In addition, this Section is intended to provide a mechanism enabling the distinction between permitted home occupations and special or customarily "more sensitive" home occupations, so that permitted home occupations may be allowed through an administrative process rather than a legislative hearing process. 2. Procedures and Permits. a. Permitted Home Occupation. Any permitted home occupation as defined in this Ordinance, and subject to the performance standards of this Section, may be conducted solely within a single family detached dwelling (excluding attached garage space and/or any accessory structures). The permitted home occupation shall require a "permitted home occupation permit". Such permits shall be issued subject to the conditions of this Section, other applicable City Ordinances and State law. This permit may be issued by the Zoning Administrator based upon proof of compliance with the provisions of this Section. Application for the °permitted home occupation permit" shall be accompanied by a fee as adopted by the City Council. If the Zoning Administrator denies a permitted home occupation permit to an applicant, the applicant may appeal the decision to the City Council. The permit shall remain in force and effect until such time as t ere as been a change in conditions or until such time as the provisions of this Section have been breached. An annual fee, as set byte City Council, will e c arge o e applicant. At such time as the City has reason to believe that either event has taken place, a public hearing shall be held before the Planning Commission, following the price ural provisions o a con i zona use permit in Section 401.03 of this Ordinance. The City Council shall make a final decision on whether or not the permit holder is entitled to the permit. p.I Special Home Occupation. Any home occupation which does not meet the specific requirements for a permitted home occupation as defined in this G Section shall require a "s ed I home occu ationpermit"' which shall be applied for reviewed .any- disposed on in accordance with the procedural t5rovisions of a conditional use permit found- in ection a3 j cf t}fs Ordinance. C. Declaration of Conditions. The City Council may impose such conditions on the granting of a special home occupation permit as may be necessary to carry out the purpose and provisions of this Section. 15-77 Page 96 of 158 d. Transferability. Permits shall not run with the land and shall not be transferable. e. Lapse of Special Home Occupation Permit by Non -Use. Wheneverwithin one (1) year after granting a permit the use as permitted by the permit shall not have been initiated, then such permit shall become null and void unless a petition for extension of time in which to complete the work has been granted by the City Council. Such extension shall be requested in writing and filed with the Zoning Administrator at least thirty (30) days before the expiration of the original permit. There shall be no charge for the filing of such petition. The request for extension shall state facts showing a good faith attempt to initiate the use. Such petition shall be presented to the City Council for a decision. Reconsideration. Whenever an application for a permit has been considered and denied by the City Council, a similar application for a permit affecting substantially the same property shall riot be considered again by the Planning Commission or City Council for at least six (6) months from the date of its denial unless a decision to reconsider such matters is made by not less than four-fifths (4/5) vote of the City Council. 3. Requirement -General Provisions. All home occupations shall comply with the following general provisions and according to definition, the applicable requirement provisions. a. General Provisions. 1) No home occupation shall produce light, glare, noise, odor, vibration, smoke, dust, heat, or hazardous or toxic material shall not be produced, stored, or kept on the premises that will in any way have an objectionable effect upon adjacent or nearby property. 2) No equipment shall be used in the home occupation which will create electrical interference to surrounding properties. 3) Any home occupation shall be clearly incidental and secondary to the residential use of the premises, should not change the residential character thereof, and shall result in no incompatibility or disturbance to the surrounding residential uses. 4) No home occupation shall require internal or external alterations or involve construction features not customarily found in dwellings except where required to comply with local and state fire and police recommendations. 15-78 Page 97 of 158 5) There shall be no exterior storage of equipment or materials used in the home occupation, except personal automobiles used in the home occupation may be parked on the site. 6) The home occupation shall meet all applicable fire and building codes. 12 7) All signing and informational or visual communication devices shall be in compliance with Section 401.15.G of this Ordinance. 8) All home occupations shall comply with the provisions of the City Code. 9) No home occupation shall be conducted between the hours of 10:00 pm. and 7:00 am. unless said occupation is contained entirely within the principal building, excluding attached garage space, and will not require any on -street parking facilities. 10) No commodity shall be sold on the premises. 11) Not over twenty-five (25) percent of any one story can be used for a home occupation. b. Requirements -Permitted Home Occupations. 1) No person other than those who customarily reside on the premises shall be employed. 2) The general public shall not come to the premises in question for purposes pertaining to the conduct of the home occupation. 3) All permitted home occupations shall be conducted entirely within the principal dwelling, excluding attached garage space, and may not be conducted in an accessory building. C. Requirements -Special Home Occupation. 1) No person other than a resident shall conduct the home occupation 1.32 2) Special home occupations shall be limited to only those activities of a non-residential nature which are specified as allowed"by state statute or regulation such as day care group nursery or which comply with Sections a and b above (except for b.2), but are conducted entirely within the principal building, attached garage space, or detached accessory building. 15-79 Page 98 of 158 3) Special home occupations may be allowed to accommodate their parking demand through utilization of on -street parking. In such cases where on -street parking facilities are necessary, however, the City Council shall maintain the right to establish the maximum number when and where changing conditions require additional review. 32 4). The general public shall be permitted to come to the pMmismin questions s pertaining to e conduct of the home occupation. 384. Transient Lodging. Transient Lodging shall be considr d in all Residential Districts with the suance of a Conditional Use Permi according to Section 401.03.A,7 and that Vie following criteria are satisfactoril met. a. General Provisi transient lodging 1) The facility shy service, and /c and fire codes Official. The compliant. Only a detached single fa ily home may be utilized for istent with the terms anq conditions found herein: have a State issue license for lodging and/or food :omply with and m intain all health, safety, building Vinay be require or applicable by the Building r is respons' le to ensure the facility is code 2) The owner may or mayof oc upy the structure while such facility is being utilized as a transie t I dging facility. There shall be a limit of three (3) transient guests er bedroom and a limit of three (3) bedrooms for transient lod in the facility. 3) All bedroom units shall bestablished within a principal structure or accessory structure. / 4) No transient lodging fa lity shall be I ated closer than at least five hundred (500) feet fro other bed a breakfast facilities and/or transient lodging as m asured from prop r, in lines. 5) Dining and other faci ties shall not be open to the public but shall be used exclusively y the registered guests the facility. 6) Two (2) off-street p rking spaces shall be provid for the facility use plus one (1) for e h bedroom over two (2) bed r oms. No parking spaces shall be to ted in the front yard of the prope , other than on an existing drive ay. All parking areas shall be proved with asphalt, concrete r materials suitable to control dust an rainage as approved by the ity Engineer. 15-80 Page 99 of 158 NOTICE OF PUBLIC HEARING �-wkcxj,fEj� IS ON APPLICATION FOR A SPECIAL HOME OCCUPATION LICENSE TO ALLOW A SMALL BUSINESS TO OPERATE IN A HOME THAT WILL INCLUDE BREEDING & SALE OF BENGAL CATS LOCATED AT 14860 Upper 55th Street CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council for the City of Oak Park Heights, Washington County, Minnesota shall hold a public hearing, at the direction of the City Administrator, upon the application of Ms. Michelle Lorenz to allow a small business for CAT BREEDING AND SALES OF BENGAL CATS located at 14860 Upper 55h Street., City of Oak Park Heights, County of Washington and State of Minnesota, legally described as follows: BREKKE HEIGHTS, Lot 7, Block 1 Washington County Property Number: 0402920140008 The public hearing shall be held before the City Council on Tuesday, December 11, 2018 at 6:00 o'clock pm. at the City Hall, 14168 Oak Park Blvd. N., Oak Park Heights, Minnesota 55082. All written and oral comments will be considered. Following such review, the City Council may take further action including but not limited to approval, denial or continuance. Dated this 2/h th day of November, 2018. BY ORDER OF THE CITY COUNCIL Eric Johnson, City Administrator Page 100 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Title 2019 Water and Sewer Rate Study Time Required 5 Minutes Agenda Placement New Business Originating Department/Requestor Finance -Betty Caruso, Finance Director Requester's Signature Action Requested Approve Rate Study and Rate Change for Sanitary Sewer Utility by Adoption of the Resolution for the Sanitary Sewer Rate Change Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). See attached memo, rate study and resolution. Based on the rate study Staff recommends the following: No Change for Water Rates Water rates at the present is anticipated generate enough revenue to fund the 2019 proposed budget and related allocations. Therefore, no change to the rate is recommended at this time. Reduce Sewer Rates by 3.1% (minimum billing) Due to the reductions in the Met Council billings which are expected for 2019 and into the future based on the corrected flow errors, the recommendation would be to adjust the rates DOWNWARD slightly. The recommendation is to adjust the minimum billing from $81.00 to $78.50, (2017 Rate). Though it is not a large reduction, it is a reduction to all customers. Even with this reduction noted, this change will result in a 3.5% net revenue for 2019. These net revenues are maintained in the Sewer Fund. If the Council wishes to change the rate for Sewer as noted above a resolution is attached for your approval. Page 101 of 158 SEWER - Al RESOLUTION NO. 18 -12 - CITY OF OAR PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING SEWER USAGE RATES WITHIN THE CITY OF OAK PARK HEIGHTS EFFECTIVE January 1, 2019 WHEREAS, the City of Oak Park Heights by resolution and ordinance regulates sewer usage rates within the City for all users; and, WHEREAS, a rate study has been conducted and completed by the Finance Director recommending a sewer rate increase to accommodate the cost for administrating, managing, and providing municipal sewer services to the citizens of the City of Oak Park Heights and all properties connected thereto; and, WHEREAS, the City Council has reviewed said rate increase and determined the same to be fair and equitable. WHEREAS, the city ordinances provide for the implementation of rate increases by resolution. NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Oak Park Heights as follows: That effective January 1, 2019, the City of Oak Park Heights shall establish a municipal sewer rate for all users as follows: a. A quarterly rate $5.23 per 1,000 gallons of water used for the first 15,000 gallons, with a per quarter minimum charge of $78.50. b. A rate of $5.70 per 1,000 gallons of water used over 15,000 gallons up to 50,000 gallons. C. A rate of $5.95 per 1,000 gallons of water used over 50,000 gallons Page 102 of 158 SEWER Al d. Residential sewer rates are determined by the amount of water used in the March quarter of each year. Commercial, industrial, institutional and high density residential sewer rates are based on actual usage. Passed by the City Council for the City of Oak Park Heights this 11th day of December 2018. ATTEST: Eric A. Johnson Administrator Mary McComber, Mayor Page 103 of 158 �... Memo December 3, 2018 To: Mayor and Council From: Betty Caruso, Finance Director Re: 2019 Water and Sewer Rate Study Proposed For December 11, 2018 Council Meeting Attached is the 2019 Water and Sewer Rate Study. The rate study is based on estimated revenue and expenses for 2018 and budgeted revenues and expenses for 2019. Findings of the study include: Water Fund: 2019 budget expenditures and rate/revenues indicates that we do not need to increase the water rates for 2019. This is primarily due to an average 8% increase in the rates for 2018. The same rate for 2019 should generate enough revenue to support the 2019 Budget. If the estimate does not meet the expectation there is a net revenue of $49,000 from 2018 that could be utilized to support the 2019 budget. This surplus is due to water consumption billed being higher than expected for 2018 by 9,000,000, or $42,000. Sewer Fund: The study indicates a rate increase is not necessary to generate sufficient revenue for the operation of the Sanitary Sewer Utility Fund for 2019. Due to Met Council downward adjustment to the City's actual flow volume, the charge for 2019 is less than was expected when establishing the rates for 2018. This and higher flows billed by the City has produced a net revenue of $134,000 of which the City rebated to the customers $103,000. The 2018 rate is estimated to produce a 2019 net revenue of $43,000. Recommendation: No Change for Water Rates Reduce Sewer Rates Due to the reductions in the Met Council billings which are expected for 2019 and into the future based on the corrected flow errors the recommendation would be to adjust the rates as presented in Exhibit A -Alternative 1. Though it is not a large reduction, it is a reduction to all customers. This change will result in a net revenue for 2019 of 3.5%. Page 104 of 158 Page 105 of 158 Table of Contents Introduction 1 Water User Charges 2 General 2 Water Usage Estimates 2 Customer Base 3 Consumption 4 Water Expenditures g Water Rates 9 Sewer User Charges 12 General 12 System Flow Estimates 12 Sewer Department Expenditures 15 Sewer Rates 17 CONCLUSIONS AND RECOMMENDATONS 19 Water 19 Sewer 19 General .... 19 EXHIBIT A 2019 POSSIBLE RATE INCREASE 20 Page 106 of 158 Introduction The City of Oak Park Heights annually reviews the water and sewer rate schedule to assure adequate funding for the operation of the utility systems. This report represents the results of a study undertaken to review the costs to operate and maintain the water and sewer systems in the City of Oak Park Heights and the revenue needed to support the costs. The purpose of the study is to determine the user rates required to adequately and equitably finance the proposed 2019 operating budgets of the Water and Sewer Funds. This report contains an update to the analysis of the past and projected flows, usages, and system connections as well as a review of costs and projected expenditures for operation and maintenance. In summary, this report contains a review of the past and present schedules and practices relating to water and sewer user charges in the City and recommendations for rates which will produce the required revenues in a fair and equitable manner. Page 1 Page 107 of 158 Water User Charges GENERAL It is necessary to periodically review the water user rates to determine if adequate revenue is being generated to operate the water supply and distribution system and to meet other financial obligations for capital improvements and for the renewal and replacement of infrastructure. The following sections of this report reviews projected water sales as well as budgeted expenditures and other financial obligations. Using this information, rates are computed to produce sufficient revenue to operate and maintain the water system for the coming year. WATER USAGE ESTIMATES Each dwelling and structure connected to the City water system is equipped with a water meter to measure water usage. Each well supply is also equipped with a water meter to measure water produced. These two sources are then used to verify and estimate water consumption. It can be difficult to predict water usage with great accuracy for a given year because usage will vary greatly depending upon climatic conditions during the summer growing season. The five year average billed water consumption is 183,000,000 gallons. Variations from year to year can be due to individuals practicing conservation, climate conditions and possible malfunctioning water meters. Actual consumption billed for 2017 was 187,000,000 while 2018 is estimated at 191,000,000 gallons. A conservative estimate of 185,000,000 gallons is the amount that will be used for calculating the estimated 2019 rates. Billed consumption for the last 10 years is reflected in CHART A. Page 2 Page 108 of 158 CHART A - GALLONS BILLED BY YEAR 225 200 175 150 z 0 ~a 125 a 100 z 0 a 75 d 50 25 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 GALLONS BILLED BY YEAR 211,106 188,830 187,985 194,315 196,398 173,395 184,453 180,649 186,957 191,025 CUSTOMER RASE The city's customer base of 1295 customers, consists of residential, commercial/industrial and public institution. Sprinkler -irrigation accounts are seasonally billed for the quarters ending in June and September. Sprinkler -irrigation accounts total 40 customers. For the purpose of the study 1295 customers are used. 1149 Residential users are 87% of the water customers, 138 Commercial users are 10% while 7 Public Institutions are 1%, and 40 Irrigation (Sprinklers) accounts are 2% of the total customers billed. (CHART B) Although residential users are 87% of the water customers, they generate 46% of the water usage billings. The other users Commercial, Public Institution and Sprinkler generate the remaining 54% of the water billings. (CHART C). Page 3 Page 109 of 158 CHART B CUSTOMER TYPE PUBLIC INSTITUTION 1% COMMERCIAL 10% SPRINKLER 2% RESIDENTIAL 87% ■ RESIDENTIAL COMMERCIAL PUBLIC INSTITUTION ■ SPRINKLER CHART C - REVENUE BY CUSTOMER TYPE PUBLIC INSTITUTION 22% SPRINKLER 9% LUMIAMIAL 23% RESIDENTIAL 46% ■ RESIDENTIAL u COMMERCIAL • PUBLIC INSTITUTION a SPRINKLER O- l]' i 11 Presently water billings are based on tiers of consumption. The higher the usage the higher the rate per gallon. Consumption can vary in the rate tiers during a quarterly billing Page 4 Page 110 of 158 period, but the total annual consumption has remained fairly consistent from 2014 through 2017. 2018 reflects an increase in billed consumption. The Rate Tiers are 0- 15,000; 16,000-50,000; 51,000-99,000; 100,000-200,000; and greater than 200,000 gallons. The following chart is reflecting the consumption by the various rate tiers for the years 2014-2018. The largest tier of >200,000 gallons/quarter is consumed primarily by the public institutions. An average of 867, or 66% of our customers used 15,000 gallons (minimum billing level) or less of water per quarter in 2018. An average of 30 customers use above 200,000 gallons per quarter. WATER CONSUMPTION FOR 2014-2018 BY CA z 0 J Q z J J C m n o Ln co OD rn n a N N Ln N Ln OLn cn N -4 m m a N N N N N 0-15,999 i 16,000-50,999 2014 Page 5 RATE TIER co 00 m CA m 00 n a 00 a� 1 � 1 51,000-99,999 RATE TIERS (CON ■ 2015 ; Ln (n N L' en M 00 ti L00,000-200,999 SLIMPTION GALLON .016 W20 Ln O Ln `� n a N '2t- ri aoLn��n uQ'i ■ 101,000-999,999 S) L7 ■ 2018 Ln MNo a Ch ib '4 mti 00.y m � n ANNUALTOTAL Page 111 of 158 As the chart reflects, 2014 through 2017 are very similar in usage throughout all the tiers. 2018 consumption is estimated to be 191,000,000. This is unusual, as seen in the annual total column, therefore 185,000,000 gallons is being used for rate calculations. Water consumption by customer type is fairly consistent. The following chart shows the usage by year from 2014-2018 for the various customer types. Though the chart reflects the Residential Customer uses the most water the average quarterly water usage per customer account is: • Residential 21,300 gallons (includes apartments, duplexes, condo, and individual) • Commercial 76,400 gallons • Public Institution 1,208,000 gallons • Sprinkler (seasonal) 214,000 gallons 2 Pag WATER CONSUMPTION BY CUSTOMER TYPE FOR 2014-2018 RESIDENTIAL COMMERCIAL PUBLIC INSTITUTION SPRINKIER 2014 ■ 2015 412016 ■ 2017 02018 Page 112 of 158 `a 'nN Ct 01 eY1 C1 C1 00 o N N N O n to M en M en r eM'fl 1MA I M ^ N N � N N RESIDENTIAL COMMERCIAL PUBLIC INSTITUTION SPRINKIER 2014 ■ 2015 412016 ■ 2017 02018 Page 112 of 158 A summary of 2018 activity from the preceding charts is as follows: Although the number of customers for water sales is 87% residential, the amount consumed 51% is actually billed 46% of the total billings. This is due to a tiered rate structure and residents tend to use less gallons than commercial or public institutions. The vulnerability in the division of customers is that 13% of the customers (those other than residential) use 49% of the water and should a large user (Commercial/Public Institution/ Sprinkler) start to dramatically conserve or move from the service area, there would be a large drop in revenue. This could cause the remaining customers to pay at a higher rate to cover the loss of revenue. The increased or decreased usage due to climate changes or conservation can have a substantial impact on the revenue that is generated. If it is a dry year, consumption generally runs higher and generates more revenue due to the higher rate structure, likewise when it is a wet/rainy year, consumption drops and less revenue is generated. 2018 was an average to dry year as compared with 2017. Page 7 Page 113 of 158 Consumption Customer Type CustomerType # of Customers Million Gallons Residential Billings Residential 1,149 97,866 $ 402,003 Commercial 138 42,188 $ 195,673 Public 7 33,841 $ 190,378 Sprinkler(avg) 20 17.130 $ 80.785 Total 1,314 191,025 $ 868,839 Although the number of customers for water sales is 87% residential, the amount consumed 51% is actually billed 46% of the total billings. This is due to a tiered rate structure and residents tend to use less gallons than commercial or public institutions. The vulnerability in the division of customers is that 13% of the customers (those other than residential) use 49% of the water and should a large user (Commercial/Public Institution/ Sprinkler) start to dramatically conserve or move from the service area, there would be a large drop in revenue. This could cause the remaining customers to pay at a higher rate to cover the loss of revenue. The increased or decreased usage due to climate changes or conservation can have a substantial impact on the revenue that is generated. If it is a dry year, consumption generally runs higher and generates more revenue due to the higher rate structure, likewise when it is a wet/rainy year, consumption drops and less revenue is generated. 2018 was an average to dry year as compared with 2017. Page 7 Page 113 of 158 Consumption Customer Type %of Customers Million Gallons Billings Residential 87.44% 51.23% 46.27% Commercial 10.50% 22.09% 22.52% Public 0.53% 17.72% 21.91% Sprinkler 1.52% 8.97% 9.30% Total 100% 100% 100% Although the number of customers for water sales is 87% residential, the amount consumed 51% is actually billed 46% of the total billings. This is due to a tiered rate structure and residents tend to use less gallons than commercial or public institutions. The vulnerability in the division of customers is that 13% of the customers (those other than residential) use 49% of the water and should a large user (Commercial/Public Institution/ Sprinkler) start to dramatically conserve or move from the service area, there would be a large drop in revenue. This could cause the remaining customers to pay at a higher rate to cover the loss of revenue. The increased or decreased usage due to climate changes or conservation can have a substantial impact on the revenue that is generated. If it is a dry year, consumption generally runs higher and generates more revenue due to the higher rate structure, likewise when it is a wet/rainy year, consumption drops and less revenue is generated. 2018 was an average to dry year as compared with 2017. Page 7 Page 113 of 158 WATER EXPENDITURES To determine a water usage rate schedule, it is necessary to estimate the amount of the expenditures anticipated and revenue required. Expenditures can be generally classified in the following categories: a. Operation and maintenance b. Reserve for capital improvements c. System renewal and replacement d. Debt Service Operation and maintenance costs are to be included in the rate calculation and are taken directly from the City Budget. The City presently plans for current and future improvements within the current budget. Funds for current capital outlay are transferred to the Budgeted Projects Fund. Funds for capital improvements are transferred to the Capital Project Funds for Tower, Well and Renewal and Replacement for the future improvements and replacement of facilities and infrastructure. The following is a financial statement of the Water Fund. WATER FUND REVENUES CUSTOMER BILLINGS OTHER REVENUES TOTALREVENUES EXPENSES PERSONNEL CONTRACTUAL MATERIAL AND SUPPLIES CAPITAL OUTLAY TRANSFER CAPITAL IMP TRANSFER FOR DEBT TOTAL EXPENSES NET REVENUE 2016 2017 2017 2018 2018 2019 ACTUAL BUDGET ACTUAL BUDGET ESTACTUAL BUDGET $ 750,552 $ 750,000 $ 773,617 $ 826,860 $ 868,000 $ 840,000 41,472 5,000 33,494 6,000 6,000 6,000 $ 792,024 $ 755,000 $ 807,111 $ 832,860 $ 874,000 $ 846,000 $ 185,037 $ 183,000 $ 180,730 $ 193,410 $ 191,000 $ 200,625 126,227 161,000 138,583 161,915 155,000 166,385 15,685 35,000 26,419 35,000 35,000 35,000 91,934 95,900 95,900 90,100 90,100 86,600 238,979 210,000 250,815 238,479 250,815 252,079 101,000 102,000 102,000 103,000 103,000 104,000 $ 758,862 $ 786,900 $ 794,447 $ 821,904 $ 824,915 $ 844,689 $ 33,162 $ (31,900) $ 12,664 $ 10,956 $ 49,085 $ 1,311 Based on normal consumption and 2018 water rates, 2019 reflects a revenue of $840,000 and net revenue of $1,311. Water Rates were increased in 2018 by an average of 8%. Page 8 Page 114 of 158 The expenditures for capital improvement transfers is budgeted in 2019 for the actual amount that was transferred in 2017. This increase was due to the major infrastructure reconstruction in the 2014-2016 Street Improvement Projects in which the water mains were replaced. It has been City policy to transfer funds equal to infrastructure depreciation to the Renewal and Replacement Fund for future construction. A continuing analysis of the policy helps to determine what would be an appropriate amount to set aside for replacement within an acceptable fee base for the users of the system. The City did a street reconstruction project during 2014 and 2015 that utilized the funds in the Utility Renewal and Replacement Fund to partially fund the water infrastructure replacement that was required. The total amount needed to fund the water improvement portion of the project was also funded with a utility revenue bond. The future debt service of this bond is approximately $100,000 per year for 11 years. The water utility rates have included this expenditure into the rate structure for 2015 and forward for the term of the bond issue. Since 2012 Council directed that the Administrative Charge (7% of current expenditures) be allocated to the Renewal Replacement Fund. In prior years this was transferred to the General Fund for the Utility's share of administration, accounting and billing. This reallocation of funds does not increase the expenditures of the water fund. This amount is still calculated and transferred out to the Renewal and Replacement Fund instead of the General Fund. WATER RATES The estimated unit cost to produce and supply water in the City of Oak Park Heights can be determined by dividing the estimated operating expenditures by the assumed flow. The budgeted expenditure cost per unit is summarized in the following chart: Page 9 Page 115 of 158 2019 BUDGETED EXPENDITURES PER UNIT COST Minimum quarterly bill 15,000 gallons/ or based on per customer cost $ 68.49 $ 163.07 Actual minimum quarterly bill -volume b $ 38.41 $ 38.41 A per unit cost is $4.57/1,000 gallons ($844,689/185,000,000 gallons) or $652.27 per customer. This would result in a minimum quarterly bill based on 15,000 gallons of usage of $68.49 or a minimum bill "per customer" of $163.07. Our current minimum bill based on 15,000 gallons is $38.41. The difference as to the cost per 1,000 gallons per the chart ($68.49) and the actual amount charged for a minimum quarterly bill ($38.41) is funded by the tiered rate structure which incorporates volume billing rates. In addition to the unit cost, the City is also required to submit $6.36 per water connection per year to the State of Minnesota for water connection service fees. The Current established water rates for are as follows: $1.59/quarter for State Water Connection Fee- Per Connection Minimum Charge $38.41/quarter for up to 15,000 gallons $3.35/1,000 gallons for usage from 16,000 to 50,000 gallons/qtr. $3.90/1,000 gallons for usage from 51,000 to 99,000 gallons/qtr. $4.86/1,000 gallons for usage from 99,000 to 200,000 gallons/qtr. $5.78/1,000 gallons for usage over 200,000 gallons/qtr. The 2019 Revenue is estimated in the present tier billing rates as indicated in the following chart based on the 3 year average usage of the individual tiers. Page 10 Page 116 of 158 (185,000 gallons) (1295 Cust) /1.000 GALLONS /CUSTOMER Operation & Maintenance $ 402,010 $ 2.17 $ 310.43 Renewal & Replacement 252,079 $ 1.36 $ 194.66 Debt Service 104,000 $ 0.56 $ 80.31 Capital Outlay 86,600 $ 0.47 $ 66.87 Total $ 844,689 $ 4.57 $ 652.27 Minimum quarterly bill 15,000 gallons/ or based on per customer cost $ 68.49 $ 163.07 Actual minimum quarterly bill -volume b $ 38.41 $ 38.41 A per unit cost is $4.57/1,000 gallons ($844,689/185,000,000 gallons) or $652.27 per customer. This would result in a minimum quarterly bill based on 15,000 gallons of usage of $68.49 or a minimum bill "per customer" of $163.07. Our current minimum bill based on 15,000 gallons is $38.41. The difference as to the cost per 1,000 gallons per the chart ($68.49) and the actual amount charged for a minimum quarterly bill ($38.41) is funded by the tiered rate structure which incorporates volume billing rates. In addition to the unit cost, the City is also required to submit $6.36 per water connection per year to the State of Minnesota for water connection service fees. The Current established water rates for are as follows: $1.59/quarter for State Water Connection Fee- Per Connection Minimum Charge $38.41/quarter for up to 15,000 gallons $3.35/1,000 gallons for usage from 16,000 to 50,000 gallons/qtr. $3.90/1,000 gallons for usage from 51,000 to 99,000 gallons/qtr. $4.86/1,000 gallons for usage from 99,000 to 200,000 gallons/qtr. $5.78/1,000 gallons for usage over 200,000 gallons/qtr. The 2019 Revenue is estimated in the present tier billing rates as indicated in the following chart based on the 3 year average usage of the individual tiers. Page 10 Page 116 of 158 2019 REVENUES FROM PRESENT RATES 2019 Rate Tier 1000 al Rate Estimated Revenue 0-15,999 55,000 $38.41/acct $201,882 16,000-50,999 28,000 $3.35 $93,800 51,000-99,999 15,000 $3.90 $58,500 10,000-200,999 19,000 $4.86 $92,340 201,000-999,9999 68,000 $5.78 $393,040 Total 185,000 $5.78 $839,562 For budget 2019, $840,000 along with other budgeted water revenues will be sufficient to fund the 2019 budgeted expenditures of $844,700. 2018 REVENUES (ESTIMATED) BASED ON ACTUAL VOLUMES 2018 Rate Tier Estimated Revenue 1000 gal Rate 0-15,999 56,000 $38.41/acct $201,882 16,000-50,999 28,000 $3.35 $93,800 51,000-99,999 15,000 $3.90 $58,500 100,000-20,999 20,000 $4.86 $97,200 201,000-999,9999 72,000 $5.78 $416,160 Total 191,000 $867,542 The Budgeted Revenue for 2018 is $826,000. It is estimated that $868,000 will be generated from all billings in 2018. This will be $50,000 more that needed to meet 2018 Budgeted Expenditures. As mentioned previously, 2018 consumption is estimated to be 191,000,000. The 2018 Water Rates were estimated using 182,000,000 gallons. The increase in consumption, along with the increase of consumption in the higher tiered rates in 2018 is responsible for the additional revenue over the budgeted revenue. No increase in water rates is needed for 2019 water operations. If the revenue for 2019 should be less than estimated using the 2018 rate structure, the excess funds collected in 2018 could be applied to fund the budget. Page 11 Page 117 of 158 Sewer User Charges GENERAL The City of Oak Park Heights regularly reviews, adopts, and/or modifies its sewer user rate schedule to assure that sufficient revenue is being generated for the payment of all expenditures associated with the operation and maintenance of the sewage collection system and treatment facilities. This review is also undertaken to verify that all classification of sewer users are charged for service in a manner which is fair and equitable as defined in State and Federal regulations. The following sections of this report will describe the system usage, financial obligations, and budgeted expenditures as well as a suggested rate schedule to provide adequate revenues to operate and maintain the system in 2019. SYSTEM FLOW ESTIMATES Utility user rates can be established by equating the amount of service sold to the estimated expenditures anticipated by the utility. In the case of a sanitary sewer system, the use or service can be measured by sewage flow with projections for future use being dependent upon growth by number and type of connections to the system. The Metropolitan Council Environmental Services (MCES) maintains flow -measuring devices which are used to total all sewage flows from the entire City. The MCES utilizes a "firm flow" allocation method in order to stabilize the flow revenue for the MCES and the charges to the municipalities. This means instead of estimating a system flow, the MCES uses the last known flow numbers to allocate their budget for the coming year. To determine the 2019 annual billing amount, the calculation is based on flows from January 1, 2017 and ending December 31, 2017. The annual charge is a flat rate and billed to the city in equal monthly installments. The City has continuously questioned the accuracy of the MCES measurement of the sewer flows. During 2018 the MCES revised the City's Flow Allocation Volumes from 2011 through 2016. This resulted in a credit of 204,140,000 gallons to the billed 1,200,780,000 for that period. The following table summarizes the credit of $463,620.25 that MCES calculated to the City's past billings. Page 12 Page 118 of 158 The MCES paid the City for the credit of $463,620 because of the error in flow measurement. The City rebated the current year customers $80 which was equal to the 2018 overcharge of $103,000. The sewer flow of 176,400,000 gallons is the MCES measurement for the city 2017 and is used for the calculation of the 2019 charges due the MCES. This is more in line with the total amount of water billed which was 169,000,000 for 2017. (Excludes Sprinkler Billed). The difference can be attributed to unbilled water, such as broken meters, unmetered usage and if the city has any Inflow and Infiltration of storm/ground water. The total amount of water pumped from the City's wells during this time was 220,000,000. This includes amounts used by sprinklers, residents watering the lawns, water used for parks and rinks and the flushing of hydrants. The MCES daily flow calculations will continue to be monitored by city staff and compared to the City's water pump reports. This is to catch any discrepancies/errors that may return. Assumptions and estimates must be used to apportion flows and resulting costs to the various types of users on the system. The budgeted billable flow for sewer for 2017 is 150,000,000 gallons. Actual 2018 billed flow is estimated at 156,000,000. For 2019, 150,000,000 will be used for calculating the rates. This is a based on historical billing flows of 150,000,000 for the last 5 years. The increase for 2018, like water consumption is from the commercial/public institution use in the higher rate tiers. This is unusual and should not be relied upon for determining rates for 2019. Sewage flows from residential connections are assumed to be equal to the quarterly water usage experienced during the winter months when no lawn sprinkling occurs. Actual Page 13 Page 119 of 158 Cost Implied Original Volume Revised Correction to Monitoring Allocation Rate Allocaed Adjustment Allocated Billed Year Year ($/MG) Volume (MG) (MG) Volume (MG) Amount ($) 2011-2012 2013 2029.00 194.48 -17.64 176.84 -$35,781.98 2012-2013 2014 2141.55 190.66 -29.98 160.68 -$64,214.12 2013-2014 2015 2084.38 199.01 -44.32 154.69 -$92,382.41 2014-2015 2016 2348.25 199.01 -35.02 163.99 -$82,235.27 2015 2017 2484.71 200.80 -34.44 166.36 -$85,576.01 2016 2018 2421.54 216.82 -42.74 174.08 -$103.430.46 Total Adjustment 1200.78 -204.14 996.64 -$463,620.25 The MCES paid the City for the credit of $463,620 because of the error in flow measurement. The City rebated the current year customers $80 which was equal to the 2018 overcharge of $103,000. The sewer flow of 176,400,000 gallons is the MCES measurement for the city 2017 and is used for the calculation of the 2019 charges due the MCES. This is more in line with the total amount of water billed which was 169,000,000 for 2017. (Excludes Sprinkler Billed). The difference can be attributed to unbilled water, such as broken meters, unmetered usage and if the city has any Inflow and Infiltration of storm/ground water. The total amount of water pumped from the City's wells during this time was 220,000,000. This includes amounts used by sprinklers, residents watering the lawns, water used for parks and rinks and the flushing of hydrants. The MCES daily flow calculations will continue to be monitored by city staff and compared to the City's water pump reports. This is to catch any discrepancies/errors that may return. Assumptions and estimates must be used to apportion flows and resulting costs to the various types of users on the system. The budgeted billable flow for sewer for 2017 is 150,000,000 gallons. Actual 2018 billed flow is estimated at 156,000,000. For 2019, 150,000,000 will be used for calculating the rates. This is a based on historical billing flows of 150,000,000 for the last 5 years. The increase for 2018, like water consumption is from the commercial/public institution use in the higher rate tiers. This is unusual and should not be relied upon for determining rates for 2019. Sewage flows from residential connections are assumed to be equal to the quarterly water usage experienced during the winter months when no lawn sprinkling occurs. Actual Page 13 Page 119 of 158 quarterly water meter readings are used for sewage discharge billing for all commercial, industrial, institutional and high end residential connections (> 3 units). The following chart reflects the billed sewer for each type of user for the 2018 year. 2018 ESTIMATED SEWER FLOWS BY CUSTOMER (mg) ■ RESIDENTIAL >3 UNITS COMMERCIAL/PUBLIC ■ RESIDENTIAL Water meters exist at each connection which measures the water purchased, but does not provide information on the quantity discharged to the sewer. Generally, almost all water purchased enters the sewer system with the exception of that water used for lawn irrigation. Lawn sprinkling is primarily confined to single family, townhouse, and similar land uses. Where large institutional facilities or other users have high irrigation demands, separate meters are becoming common so that sewer billing is limited to the non -sprinkler water usage only. There is approximate total of 1300 customers, 200 commercial and public institution who are billed on actual water usage and 1,100 billed on winter water usage. Page 14 Page 120 of 158 SEWER DEPARTMENT EXPENDITURES In addition to estimating the volume of sewage flow, the other basic factor required in establishing user rates is the amount of expenditures anticipated and revenue required. Expenditures can be generally classified in the following categories: a. Metropolitan Council Environmental Services billing b. Local operation and maintenance c. Capital Outlay d. System renewal and replacement The Sewer Utility Budgets for 2018 and 2019 along with actual expenditures for 2016, 2017 and estimated 2018 are in the following table. SEWER REVENUES CUSTOMER BILLINGS REBATE OTHER REVENUES TOTAL REVENUES EXPENSES PERSONNEL CONTRACTUAL MCES MATERIAL AND SUPPLIES CAPITAL OUTLAY TRANSFER CAPITAL IMP TOTAL EXPENSES NET REVENUE 2016 2017 2018 2018 2019 ACTUAL ACTUAL BUDGET ESTIMATED BUDGET $ 908,570 $ 972,017 $ 999,300 $ 1,033,224 $ 995,000 $ - $ (103,275) 22,265 45,398 i 10,000 10,000 10,000 $ 930,835 $ 1,017,415 $ 1,009,300 $ 939,949 $ 1,005,000 $ 105,569 $ 118,289 $ 122,900 $ 120,000 $ 127,420 111,727 102,075 148,298 130,000 156,760 458,379 498,930 524,849 421,608 445,828 12,772 13,853 14,850 14,850 14,850 46,400 49,725 51,725 51,725 47,625 161,987 171,303 142,700 171,303 169,140 $ 896,834 $ 954,175 $ 1,005,322 $ 909,486 $ 961,623 $ 34,001 $ 63,240 $ 3,978 $ 30,463 $ 43,377 The revenues reflect a rebate given by the City for the credit that was received from MCES for 2018. This was a onetime $80.00 reduction in each sewer customer's bill. Page 15 Page 121 of 158 The Metropolitan Council Environmental Services fee is based on the "firm flow" allocation method and will be $445,828 for 2019 as compared to $421,614 for the year 2018. This represents a 5.7% increase in the MCES fee. The MCES charges since 2010 are in the following chart. MCES CHARGES BASED ON FLOWS AND BUDGET CHANGES The chart shows an increases in the MCES budget for 2019 of 3.50%, however the percentage increase in the annual MCES charge for the city for 2019 is 5.74%. This is due to the City's flow increase to 176.4 and the total MCES flow reduction to 88,991.18. These two factors increase the City's share and thus a higher percentage of cost sharing. Local operation and maintenance costs for sewer are incorporated into the rate structure and have been taken directly from the City Budget or from actual expenditures when available. The City presently plans for current and future improvements within the current budget. Since 2012 Council directed that the Administrative Charge (7% of current expenditures) be allocated to the Renewal Replacement Fund. In prior years this was transferred to the General Fund for the Utility's share of administration, accounting and billing. This reallocation of funds does not increase the expenditures of the sewer fund. This amount is still calculated and transferred out to the Renewal and Replacement Fund instead of the General Fund. Page 16 Page 122 of 158 OPH % of % MCES OPH TOTAL % INC IN MCES INCREASE Years TOTAL FLOW FLOWS FLOWS MCES BUDGET BUDGET ANNUALCHG (DECREASE) 2010 84,519.05 196.95 0.23302% 167,410,000 3.77% $ 390,106.13 6.53% 2011 85,293.98 201.05 0.23571% 172,784,609 3.21% $ 407,277.81 4.400/6 2012 93,680.78 194.90 0.20805% 173,649,000 0.50% $ 361,271.44 -11.30% 2013 88,133.97 176.84 0.20065% 178,823,786 2.98% $ 358,808.28 -0.68% 2014 86,007.24 160.68 0.18682% 184,188,500 3.00% $ 344,103.68 -4.10% 2015 91,494.90 154.69 0.16907% 190,710,000 3.54% $ 322,432.51 -6.30% 2016 85,601.13 163.99 0.19157% 201,013,000 5.40% $ 376,143.46 16.66% 2017 85,298.36 166.36 0.19503% 211,941,538 5.44% $ 413,356.06 9.89% 2018 90,747.95 174.11 0.19186% 219,749,756 3.68% $ 421,614.26 2.00% 2019 89,991.18 176.40 0.19602% 227,440,997 3.50% $ 445,828.05 5.74% The chart shows an increases in the MCES budget for 2019 of 3.50%, however the percentage increase in the annual MCES charge for the city for 2019 is 5.74%. This is due to the City's flow increase to 176.4 and the total MCES flow reduction to 88,991.18. These two factors increase the City's share and thus a higher percentage of cost sharing. Local operation and maintenance costs for sewer are incorporated into the rate structure and have been taken directly from the City Budget or from actual expenditures when available. The City presently plans for current and future improvements within the current budget. Since 2012 Council directed that the Administrative Charge (7% of current expenditures) be allocated to the Renewal Replacement Fund. In prior years this was transferred to the General Fund for the Utility's share of administration, accounting and billing. This reallocation of funds does not increase the expenditures of the sewer fund. This amount is still calculated and transferred out to the Renewal and Replacement Fund instead of the General Fund. Page 16 Page 122 of 158 Like the Water Utility Fund, it has been City policy to transfer funds equal to depreciation to the Renewal and Replacement Fund for future construction. This amount is reviewed and analyzed on occasion along with policy to determine if funding for future renewal and replacement of infrastructure is sufficient to achieve the expected capital improvement. The amount transferred, per present policy, has increased after the Highway 36 Bridge Project was complete and replacement costs of new infrastructure was built into the budget. SEWER RATES Sewer costs can be computed by simply dividing the various operating costs by the estimated flow. This generates a per unit cost. The present rates based on per unit and volume billing are calculated in the chart. SEWER 2019 BUDGETED EXPENDITURES PER UNIT COST Minimum quarterly bill 15,000gallons based on per unit cost $ 96.15 $ 184.93 Actual minimum quarterly bill -volume b $ 81.00 $ 81.00 A per unit cost is $6.41/1,000 gallons ($961,623/150,000,000 gallons) or $739.71 per customer ($961,623/1300 customers). This would result in a minimum quarterly bill based on 15,000 gallons of usage of $96.15 or a minimum bill "per customer" of $184.93. Our current minimum bill based on 15,000 gallons is $81.00 The current established quarterly sewer rates are as follows: Page 17 Minimum Charge $81.00/quarter for up to 15,000 gallons $5.70/1,000 gallons for usage over 15,000-50,000 gallons $5.95/1,000 gallons for usage above 50,000 gallons Page 123 of 158 (150,000 gallons) 1300 /1,000GALLONS /CUSTOMER Operation & Maintenance $ 299,030 $ 1.99 $ 230.02 MCES 445,828 $ 2.97 $ 342.94 Capital Improvements 169,140 $ 1.13 $ 130.11 Capital Outlay 47,625 $ 0.32 $ 36.63 Total $ 961,623 $ 6.41 $ 73971 Minimum quarterly bill 15,000gallons based on per unit cost $ 96.15 $ 184.93 Actual minimum quarterly bill -volume b $ 81.00 $ 81.00 A per unit cost is $6.41/1,000 gallons ($961,623/150,000,000 gallons) or $739.71 per customer ($961,623/1300 customers). This would result in a minimum quarterly bill based on 15,000 gallons of usage of $96.15 or a minimum bill "per customer" of $184.93. Our current minimum bill based on 15,000 gallons is $81.00 The current established quarterly sewer rates are as follows: Page 17 Minimum Charge $81.00/quarter for up to 15,000 gallons $5.70/1,000 gallons for usage over 15,000-50,000 gallons $5.95/1,000 gallons for usage above 50,000 gallons Page 123 of 158 The projected revenue for 2018 is estimated to beat $1,030,660, the budgeted amount was $999,300. This overage of revenue is attributable to the increase in the gallons billed for 2018 as compared to the estimate for 2018. The following tables reflects the actual rates and revenue for 2018 based on the estimate of 156,000,000 gallons of flow and 2019 estimate utilizing the current rates with the projected billed flow of 150,000,000. 2018 Rate Tier 1000 al Rate Estimated Revenue 0-15,999 1000 gal Rate $418,000 0-15,999 52,200 $81.00/acct $418,000 16,000-50,999 19,800 $5.70 $112,860 51,000-999,999 84.000 $5.95 $499,800 Total 156,000 $1,030,660 2019 Rate Tier 1000 al Rate Estimated Revenue 0-15,999 52,200 $81.00/acct $418,000 16,000-50,999 19,800 $5.70 $112,860 51,000-999,999 78,000 $5.95 $464,100 Total 150,000 $994,960 If rates for 2019 were to remain the same as 2018 there would be an approximate surplus of $43,000. The rates for 2018 were established including the $524,849 of MCES Charges which is prior to the credit of $106,235 given for 2018. The 2019 MCES Charge of $445,828 is $79,021 less than the budget amount for 2018 and $24,214 more than the adjusted MCES charge for 2018. The projected revenue for 2019 is sufficient to support the expected expenditures for 2019. EXHIBIT A at the end of the study gives possible rate changes for the 2019 Sewer Rates. Page 18 Page 124 of 158 CONCLUSIONS AND RECOMMENDATONS WATER Based on the study and review of rates, it is concluded that a rate increase will be NOT be required to generate adequate revenue for the Water Fund for 2019. Being the estimate for 2019 is just enough to cover the 2019 expenditures, it may be necessary to utilize some of the 2018 revenue overage for the 2019 budgeted expenditures. SEWER An increase for 2019 is NOT necessary to generate enough revenue for the operations of the Sanitary Sewer Fund. Due to the reductions in the MCES billings, the present rate generates sufficient revenue to support the 2019 budget. The reduction in MCES expense could merit a reduction in the present rates. See EXHIBIT A for an example. GENERAL Utility Rates should include costs for the renewal and replacement of infrastructure. The proposed rates include the amount that has been set by policy. This amount may not be sufficient to pay for all future replacement construction. It would be prudent to do a long term analysis and review of policy to determine results that the city would like to obtain. A study of the rates, structure and future construction needs should be undertaken to determine the most reasonable method to charge customers for the services and to continue to prepare for future needs. Page 19 Page 125 of 158 EXHIBIT A 2019 POSSIBLE RATE INCREASE EXHIBIT A SEWER RATE ALTERNATIVES CURRENT RATES 2018 POSSIBLE RATE CHANGE *** Revenue needed $965,000 ALTERNATIVE #1 SEWER /1000 Estimated Tiers /1000GAL MINIMUM Gallons Revenue 0-15,999 $ 5.40 $ 81.00 52,200 $ 418,000 16,000-50,999 $ 5.70 19,800 $ 112,860 51,000-999,999 $ 5.95 78.000 $ 464.100 POSSIBLE RATE CHANGE *** Revenue needed $965,000 ALTERNATIVE #1 SEWER SEWER /1000 Tiers Estimated Tiers /1000GAL MINIMUM Gallons $ 5.23 $ 78.50 Revenue 0-15,999 $ 5.23 $ 78.50 52,200 $ 408,200 16,000-50,999 $ 5.70 19,800 $ 112,860 51,000-999,999 $ 5.95 78,000 $ 464.100 TOTAL 150,000 $ 985,160 ALTERNATIVE #2 Page 20 Page 126 of 158 SEWER /1000 Estimated Tiers /1000GAL MINIMUM Gallons Revenue 0-10,999 $ 5.23 $ 78.50 52,200 $ 408,200 16,000-50,999 $ 5.58 19,800 $ 110,484 51,000-999,999 $ 5.83 78,000 $ 454.740 TOTAL 150,000 $ 973,424 Page 20 Page 126 of 158 158 MILLION GAI.LON5 �ID v • D :D7N (C) —� (Q — JC O Q'? Q �p Q ��Q Ln 3(D Co00� 0' 7 0 0C� C L/) O O = � C7 CD O 0 Q m 3 Q cD Q Q Q :3 @ CDS OO :D CU � 158 W � Vi. d ih 'N1. i/1. 00 CD 0 a -a x -v ..i =rcA C m C 70r M v N m0; A M C m m m x .P O cn G M- �0 3 � C a S� 0 � = =1 3 c< F, w m (n 00 V (Ln N V W �IIUJ O O W m a fD 4�h T w N N . m tD c O VI W V O N 00 V m A H 3 M O) r A (D 158 W {/1 Vi. 4�:h ih 'N1. i/1. 00 N NJ Ul kD I� O W O N W N .P O cn to r0 O UD W A F, w p- 00 V (Ln N V W �IIUJ O O W N N O� 4�h V w N N tD O VI W V O N7 00 V 158 W Fi 4�:h �O O 00 N NJ Ul kD O W N lOC W Vf N I" cn P r0 O UD O O O V W O O O O 000 N O Ull 0000 w 158 W Fi 4�:h �O O 00 N O O kD O W N lOC V w (L O w O O O V W O Ln O 00 158 W 4�:h �O O 00 N O O 158 n <J rm 0 3: x >0 mrn 24A 0 ;v m > tA rn m I a n C/) (1/1 -< rn M rn 0 0-0 :E:z 0 3: x >0 mrn 24A 0 ;v m > tA rn m I a n C/) ;;u x r TI m Q CJ m rn z z � a V C.s C z n 0 m m C) C N 0 m C m Z C m T 0 G 0 LTi m ►1 �3 0 X. 3 1 0 L � C1 0 rn z z � a r vv W 0 n 0 SO co CD CJ n (ls 0 3 N 0 Les m m n 0 m �J Ln n .% 7 0 Ql V)3 3 �D rn Q. Q. V n Q C a C CT 0 m C m Z C m T 0 G 0 LTi m ►1 �3 0 X. 3 1 0 L � C1 0 rn z z � a r vv W 0 n 0 SO co CD CJ n (ls 0 3 N 0 Les m m n 0 m �J Ln W oou Q co 0 a -10 1-0 01 Nv 0 0 0 Q D I {/i V (D f^a ►J 0 `•J L/ 1N 0 3 CD CRY v 0 0 Q 0 O 0 ►J m -�: Q n {g M �-- n CD 0 o (D n too 0' O CT Vim^t. V I N CD �•, J co Q_ CQ Q n m Q CD -• W 0 Q 158 THIS PAGE INTENTIONALLY LEFT BLANK Page 136 of 158 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Title Resolution Ap rn owing the 2019 Budget Time Required 1 Minutes Agenda Placement New Business Originating Department/Requestor_ Finance -Betty Caruso Finance Director Requester's Signature R Action Requested Apurove Resolution for 2019 Budget Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). Attached is: • Resolution Approving the 2019 Budget • a summary of the 2019 Budgeted Revenues • a summary of the 2019 Budgeted Expenditure, • the Annual Budget Report. A full copy of the 2019 Budget is in your council mailbox at City Hall. The total General Fund Budget as Proposed is $5,800,888. 2019 General Fund Budgeted Expenditures decreased by $7,550, or (.12%) compared to 2018. • $117,370 or 2.92% increase in Operations • $(100,920) or (4.94) % decrease in the Transfer of funds for capital projects • $ (24,000) or (3.98)% decrease in the Debt portion of the levy Information regarding this and the changes in revenue mix are included in the 2019 Annual Budget Report. The proposed tax levy for the City is $5,090,246 for the General Levy and $0 for the Debt Levy. This Levy is $(235,255) or a (4.47)% decrease as compared to the 2018 levy. I have prepared the resolutions for the 2019 Budget Adoption based on the present budget. If during the TNT hearing any changes are made by the council, I will change the resolution accordingly. Action Request Adopt the Resolution for the 2019 Budget for General Fund of $5,800,888 or as adjustedAV CRYQ0!58 RESOLUTION 18-12-46 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE 2019 BUDGET WHEREAS, the City Staff has prepared and submitted to the City Council the proposed budget for calendar year 2019; and, WHEREAS, the City Council for the City of Oak Park Heights has determined that the proposed budget as submitted by the City Staff is in the best interests of the citizens of the City of Oak Park Heights. NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Oak Park Heights: That the 2019 budget is hereby approved as presented by the City Finance Director in the total General Fund amount of $ 5,800,888 Passed by the City Council for the City of Oak Park Heights this 11th day of December 2018. Attest: Eric A. Johnson Administrator Mary McComber, Mayor Page 138 of 158 GENERAL FUND REVENUE SUMMARY Page 139 of 158 12/7/2018 2019 SUMMARY OF GENERAL FUND REVENUE PAGE 1 2018/2019 2016 2017 2018 2019 Budget Actual Actual Budget Budget Inc (Dec) Taxes Operations $ 4,682,211 $ 4,590,661 $ 4,725,501 $ 4,511,246 $ (214,255) -4.53% Debt Levy Total Taxes 608,000 603,000 603,000 579,000 (24,000) -3.98% Tax Abatements $ 5,290,211 $ 5,193,661 $ 5,328,501 $ 5,090246 $ (238,255) -4.47% (23,549) (3,279) Other Taxes 81,981 97,073 74,500 72,500 _ (2,000) -2.68% Business Licenses -Permits 47,302 44,587 43,610 41,280 (2,330) -5.34% Non -Business Licenses -Permits 166,880 128,149 64,000 89,000 25,000 39.06% Fines & Forfeits 40,864 50,023 40,000 40,000 - 0.00% Intergovernmental Revenues 111,140 138,645 115,527 103,396 (12,131) -10.50% Charges for Services 81,510 90,762 52,600 54,000 1,400 2.66% Miscellaneous Revenues 191,085 177,330 89,700 106,800 17,100 19.06% Fund Balance Total Revenues - $ 5,987,424 $ - 5,916,951 - $ 5,808,438 203,666 $ 5,800,888 203,666 $ (7,550) -0.13% Page 139 of 158 12/7/2018 2019 SUMMARY OF GENERAL FUND REVENUE PAGE 1 GENERAL FUND EXPENDITURE BUDGET SUMMARY Page 140 of 158 12/6/2018 GENERAL FUND EXPENDITURE BUDGET SUMMARY Page 2 2016 2017 2018 2019 INCREASE ACTUAL ACTUAL BUDGET BUDGET (DECREASE) % GENERAL GOVERNMENT GENERAL MANAGEMENT & BUILDING $166,313 $149,357 $167,275 $165,616 ($1,659) -1.11% MAYOR & COUNCIL $86,166 $91,633 $109,504 $108,487 $27,000 ($1,017) ($3,000) -1.11% -13.10% LEGAL $19,276 $6,120 $22,898 $1,660 $30,000 $6,300 $830 ($5,470) -329.52% ELECTIONS CITY ADMINISTRATION $268,577 $276,103 $284,673 $290,720 $6,047 2.19% PLANNING & ZONING $27,873 $37,256 $31,500 $31,100 $254,705 ($400) $41,715 -1.07% 20.87% FINANCE $194,040 $36,724 $199,898 $35,760 $212,990 $47,700 $44,000 ($3,700) -10.35% COMPUTER $25,246 $32,800 $34,000 $35,000 $1,000 3.05% AUDIT INSURANCE $352,279 $388,797 $424,042 $468,205 $44,163 11.36% ASSESSING $23,068 $24,039 $25,000 $26,000 $1,000 4.16% ENGINEERING $18,833 $24,274 $30,000 $25,000 ($5,000) -20.60% COUNCIL CONTINGENCY $768 $786 $15,000 $15,000 $0 0.00% PUBLIC SAFETY $1,288,956 $1,297,433 $1,463,775 $1,527,550 $63,775 4.92% POLICE FIRE PROTECTION $235,587 $246,982 $257,000 $263,200 $6,200 2.51% BUILDING INSPECTIONS $97,900 $98,752 $108,614 $108,015 ($599) ($500) -0.61% -22.58% EMERGENCY MANAGEMENT $97 $2,214 $920 $1,620 $1,650 $1,120 $700 ($950) -103.26% ANIMAL CONTROL $178 PUBLIC WORKS PUBLIC WORKS -STREET MAINTENANCE $57,701 $66,322 $105,675 $81,670 ($24,005) -36.19% PUBLIC WORKS -SNOW REMOVAL $93,779 $114,437 $152,000 $153,000 $1,000 0.87% PUBLIC WORKS -STREET LIGHTING $65,232 $61,438 $70,600 $66,000 ($4,600) -7.49% ARBORIST 5430 $623 $5,855 $855 ($5,000) -802.57% SANITATION & WASTE $204,434 $203,997 $217,000 $222,600 $5,600 2.75% TREE REMOVAL $33,735 $34,725 $35,000 $35,000 $0 0.00% PARKS AND RECREATION $164,311 $142,813 $180,345 $183,115 $2,770 1.94% PARKS OTHER EXPENDITURES TRANSFERS OUT $2,142,004 $2,528,949 $1,791,320 $1,666,400 ($124,920) -4.94% TOTAL GENERAL FUND EXPENDITURE $5,609,627 $6,084,866 $5,808,438 $5,8001888 ($7,550) -0.12% Page 140 of 158 12/6/2018 GENERAL FUND EXPENDITURE BUDGET SUMMARY Page 2 City of Oak Park Heights 2019 Annual Budget PayeaW11of 158 2019 Annual Budget Table of Contents City Officials 3 Budget Process 4 General Fund Revenues 6 General Fund Expenditures 8 Tax Levies, Tax Capacity and Tax Capacity Rate 9 Utility Fund Revenues and Expenditures 13 Debt Service Funds 14 Budgeted Projects Fund 15 Exhibit A- General Fund Expenditure Budget Summary 16 Pagta2;f 158 Oak Park Heights City Officials Position Mayor Mary McComber Councilmember Chuck Dougherty Councilmember Mike Liljegren Councilmember Mike Runk Councilmember Mark Swenson Councilmember Elect Carly Johnson City Staff Eric A. Johnson — City Administrator Betty Caruso — Finance Director Brian DeRosier — Police Chief Andrew Kegley— Public Works Director David Mol — City Auditor Mark Vierling — City Attorney Lee Mann — City Engineer Term Expires 12/31/2020 12/31/2020 12/31/2022 12/31/2020 12/31/2018 12/31/2022 Page�3 of 158 Budget Process The annual budget process is a thorough review of all City revenues and expenditures for the current and upcoming year. There are many uncontrollable factors the City must comply with that affect both the amount of revenues the City receives and the amount the City must expend in order to provide the current level of services. There are also numerous unfunded mandates the City must comply with, such as: Revenues • Tax exempt property — City must still maintain police/fire protection, streets, etc. • Limitations of local special assessments. • Local improvement feasibility reports requirements. • Limitation of maximum penalties and fines for ordinance violations. • Truth in taxation requirements. • Limitation on fees for licenses, i.e. off -sale and Sunday on -sale liquor, fireworks. Expenditures • Pay equity, implementation and reporting. • Worker's compensation. • Public pensions. • Continuation of health and life insurance coverage. • Prevailing wages paid on public contracts. • Veteran's preference. • Mandatory binding arbitration for employee classes such as police and firefighters. • Various public safety requirements i.e. Peace officer standards and training, confined space entry, suspense file reduction, tobacco compliance checks. • Building code administration and limits to permit fees for minor improvements. • Numerous environment requirements i.e., wastewater treatment standards Wetland Conservation Act, recycling programs, waste collection practices, drinking water standards, surface water management plans, Federal Clean Water Act, Wellhead Protection, Wastewater permit requirements, and storing of hazardous substances reporting. • Planning requirements for land use, zoning, building codes. • Comprehensive plan updates. • Conducting elections including paying judges, absentee ballots and recounts. • Record keeping requirements for Data Practices Act and retention schedules. • Competitive bidding. • Open Meeting Law notices, agendas and minutes. • Various financial reporting requirements, i.e. budget, audit reports, TIF reports, building inspection fee reporting, business subsidy reports, outstanding debt reports, continuing disclosure reports. Budget Process PagvvAif 158 The City Council and staff engage in a thorough budget process each year in order to present a fair and balanced budget for the citizens of Oak Park Heights. 1. The annual budget process commences in June/July of each year with the Finance Director distributing budget worksheets to the department heads for completion. The City Council is requested to inform the Finance Director of any special requests they may have for the budget. 2. The department heads determine the anticipated expenditures and budget requests for the upcoming year. These requests are submitted to the Finance Director and Administrator for review by the end of July. 3. The Finance Director compiles a draft of the preliminary budget and submits it to the City Council. 4. The City Council schedules workshops for discussion and review of the preliminary budget. There are usually 2 to 3 workshops held during the month of August and the first week in September. All workshops are public meetings and the public is welcome to attend. 5. After all input and requests have been considered, the Finance Director makes revisions to the preliminary budget and submits it to Council for approval of the proposed budget and tax levy. Per Minnesota State Statute this must be completed and certified to the County no later than September 30. 6. The City Council sets the date for the Truth in Taxation meeting requirements. The City is required to hold a meeting in which the public is allowed to speak and the budget and levy is discussed. The hearing may be a part of a regularly scheduled meeting. The dates must be certified to the County no later than September 30. 7. Council conducts additional workshops to discuss any additional changes to the budget due to updated revenue and/or expenditure information, i.e. insurance rates, contract fees, etc. 8. The Truth in Taxation meeting is held. 9. The final budget and levy must be certified to the County by December 28, 2018 and to the Minnesota Department of Revenue after the levy is adopted. Pagta* bf 158 General Fund Revenues Historically the City relies on tax revenue to fund the City's budget. Other sources of revenues are limited due to the nature of city business. State and Federal government regulations limit the ability to raise additional revenues, such as charges for licensing and permits. The 2019 budget is supported by a $5,090,246 tax levy or 92.24% of the total revenue budget. Some factors affecting revenues are: • Revenues from Licenses and Permits have increased due to expected development for commercial and housing in 2019 • Intergovernmental Revenue decreased primarily due to the loss of the Small Cities Grant from the State • Other Revenue, includes funding for the School Liaison Officer and in 2019 has been increased to reflect time billed for general police protection such as attendance at football games. The following is a summary of the revenue dollars which fund the city operations from 2016 through budgeted 2019. Taxes Operations Debt Levy Total Taxes Tax Abatements Other Taxes Business Licenses -Permits Non -Business Licenses -Permits Fines & Forfeits Intergovernmental Revenues Charges for Services Miscellaneous Revenues Total Revenues General Fund Revenue Summary 2018/2019 2016 2017 2018 2019 Budget Actual Actual Budget Budget Inc (Dec) $ 4,682,211 $ 4,590,661 $ 4,725,501 $4,511,246 $(214,255) 608,000 603,000 603,000 579,000 (24,000) $ 5,290,211 $ 5,193,661 $ 5,328,501 $ 5,090,246 $ (238,255) (23,549) (3,279) 3,279 81,981 97,073 74,500 72,500 (2,000) 47,302 44,587 43,610 41,280 (2,330) 166,880 128,149 64,000 89,000 25,000 40,864 50,023 40,000 40,000 - 111,140 138,645 115,527 103,396 (12,131) 81,510 90,762 52,600 54,000 1,400 191,085 177,330 89,700 106,800 17,100 $ 5,987,424 $ 5,916,951 $ 5,808,438 $5,597,222 $(207,937) The debt levy is budgeted for in the General Fund and transferred to Debt Service Funds to make the debt payments for the various bond issues. For 2018, the debt levy of $579,000 was added to General Fund Levy with a corresponding transfer expenditure of $579,000 to the debt service funds. The total 2019 Revenue Budget is $5,597,222. This is a decrease of 3.55% or $207,937 under the 2018 Revenue Budget. The 2019 Tax Levy of $5,090,246 is a decrease of $238,255 or 4.47% decrease from the 2018 Tax Levy of $5,328,501. Page �f158 The following chart shows the percentage of revenue sources to fund the 2016 and 2017 expenditures and the budgeted amounts for 2018 and 2019. Actual Actual Budget Budget Revenue Source 2016 2017 2018 2019 Taxes 89.72% 89.42% 93.02% 92.24% Taxe Abatements -0.39% -0.06% 0.00% 0.00% Licenses/Permits 3.58% 2.92% 1.85% 2.33% Fines & Forfeits 0.68% 0.85% 0.69% 0.71% Intergovernmental Revenue 1.86% 2.34% 1.99% 1.85% Charges for Services 1.36% 1.53% 0.91% 0.96% Other Revenue 3.19% 3.00% 1.54% 1.91% 2019 REVENUE SOURCES PERCENTAGE OF TOTAL REVENUE a Taxes 92.249eo ■ Licenses/Permits 2.33% Fines & Forfeits .71% ■ Intergovernmental Revenue 1.85% ■ Charges for Services .96% Other Revenue 1.91% Tax Abatement adjustments from the county for commerical properties during 2016- 2017 have reduced the amount of revenue that the city collects annually. The total amount of abatments for 2018 is not reflected in the above percentages nor in the revenue summary as the total amount is unknown at this time. However, major adjustments are forthcoming during 2018 and 2019 due to the County granting reductions in property values for 2015- 2019 on petitioned commercial properties in the City. The estimate for 2018 at this time is $40,000 of tax abatements. The petitions from the commericial properties continue to be filed and if granted, may have an impact on the future tax revenues collected. Papp of 158 General Fund Expenditures The Proposed 2019 budget for General Fund Expenditures is $5,800,888. This includes expenditures for operations and transfers for capital projects and debt service. The 2019 operations budget is $4,134,488 as compared to the 2017 operating budget of $4,017,118, a 2.83% increase. Transfers for Debt Service and Capital Projects for 2019 are $1,666,400 which compares to $1,791,320 for 2018 a 6.97% decrease . This decrease includes a reduction in debt levy transfer of $24,000, a $26,500 reduction for funding the comprehensive plan, and a reduction of $50,000 for park building replacement, funding is maintained for the street maintenance fund for the future mill and overlay of many of the City roadways over the next several years. The total decrease in expenditures for the 2019 budget as compared to 2018 is $7,550 or -.13%. The following is a Summary of Actual and Budgeted Expenditures by category: For a list of department expenditures see Exhibit A- 2018 General Fund Expenditure Budget Summary. The General Fund Operations Expenditures are distributed as follows. (This is reflective of operations only and does not include the transfers to other funds.) 2016 2017 2018 2019 INCREASE 2018/2019 EXPENDITURE CATEGORY ACTUAL ACTUAL BUDGET BUDGET (DECREASE) % CHG GENERAL GOVERNMENT $ 1,225,283 $ 1,285,261 $ 1,417,984 $ 1,491,663 $ 73,679 5.20% PUBLICSAFETY 1,622,718 1,646,301 1,832,659 1,900,585 67,926 3.71% PUBLIC WORKS 250,877 277,545 369,130 336,525 (32,605) -8.83% PARKS AND RECREATION 164,311 142,813 180,345 183,115 2,770 1.54% SANITATION 204,434 203,997 217,000 222,600 5,600 2.58% TOTAL GENERAL OPERATIONS 3,467,623 3,555,917 4,017,118 4,134,488 117,370 2.92% TRANSFERS-CAPTIAL 1,522,004 1,925,949 1,188,320 1,087,400 (100,920) -8.49% TRANSFERS -DEBT 620,000 603,000 603,000 579,000 24,000 -3.98% TOTALTRANSFERS 2,142,004 2,528,949 1,791,320 1,666,400 124,920 -6.97% TOTAL EXPENDITURES $ 5,609,627 $ 6,084,866 $ 5,808,438 $ 5,800,888 $ (7,550) -0.12% For a list of department expenditures see Exhibit A- 2018 General Fund Expenditure Budget Summary. The General Fund Operations Expenditures are distributed as follows. (This is reflective of operations only and does not include the transfers to other funds.) The chart below indicates where the City will incur its expenditures in the 2019 budget year. P&Wof 158 2016 2017 2018 2019 EXPENDITURE CATEGORY ACTUAL ACTUAL BUDGET BUDGET GENERAL GOVERNMENT 35.33% 36.14% 35.30% 36.08% PUBLIC SAFETY 46.80% 46.30% 45.62% 45.97% PUBLIC WORKS 7.23% 7.81% 9.19% 8.14% PARKS AND RECREATION 4.74% 4.02% 4.49% 4.43% SANITATION 5.90% 5.74% 5.40% 5.38% TOTAL GENERAL OPERATIONS 100.00% 100.00% 100.00% 100.00% The chart below indicates where the City will incur its expenditures in the 2019 budget year. P&Wof 158 2019 Operation Expenditure Distribution GENERAL GOVERNMENT 36.08% PUBLIC SAFETY 45.97% PUBLIC WORKS 8.14% PARKS AND RECREATION 4.43% ■ SANITATION 5.38% Tax Levies, Tax Capacity and Local Tax Rate Tax Levies The proposed payable 2019 levy for the City of Oak Park Heights that was submitted to Washington County for the TNT parcel specific notices was $5,280,246. Since the preliminary adoption of the tax levy, changes have been made to reduce the tax levy. This was due to the values of Xcel Energy being reduced by $19,653,600 a 7.6% reduction. The reduction would have a noteworthy impact on the City's tax capacity and therefore increase residential property taxes between 3.2% and 6.4% depending upon the value of their home. Due to the fact that this reduction of value occurred after the preliminary tax levy was adopted, the TNT notices mailed to the property owners would be incorrectly stating that property taxes for the City would remain the same and have a 0% increase for 2019. It was decided to reduce the tax levy by $190,000 to $5,090,246 to try and achieve the matching information that was mailed in the TNT notice. This was achieved with additional budget cuts and a decision to utilize $203,666 of the unallocated General Fund Balance to supplement the 2019 Budget. The tax levy of $5,090,246 includes the amount for operations of $4,511,246 and the general obligation debt levies of $579,000. Beginning in 2012 the City included the total Special Debt Levy in the General Tax Levy as a planning strategy should levy limits be implemented by the state. This would allow the City to build its tax base from which levy limits are calculated on. The comparison levy for 2018 and 2019 is as follows: 2018 2019 Inc ec General Fund $4,725,501 $4,511,246 $(214,255) Debt Levy added to Gen Fund 603,000 579,000 24 000 Total General Fund Levy $5,328,501 $5,090,246 $(238,255) A Summary of the proposed decrease of the levy for 2019 is made up of the following changes to the 2018 Budget: PZ940,f158 SUMMARY OF CHANGES TO LEVY/BUDGET REVENUES CHANGES IN REVENUE INC PERMITS (BLG)/ LICENSE 25,000 DEC INTERGOVERNMENTAL REVENUE- SMALL CITIES ASSISTANCE (16,500) INC INTERGOVERNMENTAL REVEUE- RECYCLING GRANT 4,400 INC MISC REVENUE (SRO & POLICE OT WAGES) 18,000 OTHER CHANGES (3,861) TOTAL CHANGES IN REVENUES $ 27,039 EXPENDITURES CHANGES IN EXPENDITURES PERSONAL SERVICES SALARIES CONTRACTUAL 72,600 RELATED PAYROLL TAXES 25,000 FINANCE - REPLACEMENT HIRE TRANSITION 32,500 PARKS PARTTIME WAGES (2,000) ELECTION SALARIES (4,000) CONSULTANT FEES - ARBORIST (5,000) CONSULTANT FEES -ENGINEER (5,000) OTHER CONSULTANTS, LEGAL, AUDIT, ASSESSOR 1,000 CONTRACTUAL TRAVEL AND CONFERENCE -MAYOR AND COUNCIL (4,000) TRAVEL AND CONFERENCE -ALL OTHER DEPARTMENTS (8,000) FIRE CONTRACT 3% PLUS FORMULA = 4 % 5,600 POLICE TRAINING - COLLEGE TUITION (8,300) POLICE -MAINT BODY CAMERAIWASH COUNTY CONTRACT 12,000 STREET MAINTENACE (22,500) SANITATION 6,300 PARKS CONTACTUAL PESTS/HVAC/PRARIE 3,700 OTHER DEPARTMENT CONTRACTUALS (10,716) SUPPLIES REDUCTION IN POLICE UNIFORMS -VESTS (4,000) REDUCTION IN POLICE FUEL (5,000) REDUCTION BUILDING INSP SUPPLIES (1,200) PARKS MAINTENANCE SUPPLIES 1,700 OTHER DEPARTMENT SUPPLIES (5,754) INSURANCE GENERAL INSURANCE 8,800 WORKMAN'S COMP 1,800 HEALTH INSURANCE 33,600 OTHER MINOR BUDGET CHANGES (1,780) TRANSFERS FOR CAPITAL PURCHASES STREET/STORM RENEWAL FUNDS 14,300 DEBT FUNDS (24,000) BUDGETPROJECTS DECREASES: COPY MACHINE (5,000) PARKS BUILDING (50,000) CIVIL DEFENSE SIRENS (7,000) TENNIS COURTS (10,000) COMPREHENSIVE PLAN (26,500) VEHICLES/COMPUTERS (8,200) SMALL CITIES GRANT (16,500) INCREASES: TRAIL EQUIPMENT 8,000 OTHER CAPITAL EXPENSE NEEDS TOTAL 2019 BUDGET INCREASE $ (7,550) USE OF FUND BALANCE (203,666) TOTAL DECREASE FOR PRELIMINARY LEVY $ (238,255) RtV950'of 158 Tax Cayacity The City's estimated 2019 tax capacity value is $9,607,799 (adjusted for the change in Xcel values) This represents a 3.2% increase in tax capacity value over the 2018 final value of $9,305,847. This value is used to calculate property taxes for individual properties. The total tax levy is distributed over the total tax capacity of all the properties. Tax capacity value is market value, adjusted for the Market Value Homestead Exclusion, multiplied by the class rates. Class rates are established by the State of Minnesota and have not changed since 2002. The current class rates for residential property is 1% of taxable market value for the first $500,000 of value and then 1.25% on the remaining value of the property — Example of a $250,000 home's tax capacity value calculation is as follows: Market Value Market Val ue Exclusion Calculation Market Value of Residential Home Exclusion of the first $76,000 X 40% Add Back Remainingat9% Taxable Market Value Tax CanacitV Calculation Class Rate 1% Firs t $500,000 of Value Cl a s s Ra to 1.25% > $500,000 Total Tax Ca pa city Market Value After MVHE $ 250,000 $ 250,000 $ (76,000) $ (30,400) $ 174,000 $ 15,660 $ 235,260 $ 2,353 $ 2,353 The current class rates for commercial property is 1.5% of market value for the first $150,000 of taxable market value and then 2% on the remaining value of the property — Example of a $250,000 and a $600,000 commercial business tax capacity is calculated below. The median market value for residential property is estimated to have increase by 7.10% for 2019 as compared to 2018. Commercial Property increased 2.5%, and Public Utility values have decreased by 7.6%. AaPP,f 158 Mkt Value Tax Cap Mkt Value Tax Cab Commercial Property Mkt Value $250,000 $600,000 1.5% of first $150,000 (150,000) $2,250 (150,000 $2,250 Balance at 2% 100,000 2,000 450,000 9,000 Total Tax Capacity $4,000 $11,250 The median market value for residential property is estimated to have increase by 7.10% for 2019 as compared to 2018. Commercial Property increased 2.5%, and Public Utility values have decreased by 7.6%. AaPP,f 158 The Total Tax Capacity for 2018 and 2019 Tax Years is calculated in the following chart: TAX CAPACITY The Tax Capacity is composed of Residential, Commercial and Public Utility properties. The graph reflects the 2017/2018 values (latest available) by each class of property. 2018 TAX CAPACITY RESIDENTIAL COMMERCIAL PUBLIC UTILITY OTHER A change in valuation in anyone of the separate classes can have an impact on the remaining properties. The downward adjustment of 7.6% to the Public Utilities with the 7.1 % increase in residential properties values for 2019 is estimated to shift the share of the tax capacity for residential properties from 30.41% to 32.77%. This calculates to a 3% - 6% increase in property taxes for residential taxpayers. The unique total tax capacity of the city that is shared by residential, commercial and public utility on approximately 1/3 basis for each. The result of this shared capacity for residential property means that 2/3 of the tax burden is shared by the commercial property along with the public utility, Xcel Energy. Local Tax Rate The City's Tax Rate for the general levy for 2019 is estimated to be 50.139% per $1,000 of tax capacity value. This represents a decrease of 7.9% from 2018 rates of 54.462%. The Tax Rate is applied to the tax capacity value of the property to calculate the property taxes due. An increase in tax rate would mean an increase in taxes if the tax capacity value PBWSPof 158 ADJUSTED TNT NOTICES XCEL VALUES 2017/201 2018/20 2018/20 TAXABLE MARKET VALUE 770,896,100 821,180,600 799,115,700 TAX CAPACITY 12,105,871 13,082,756 12,661,756 FISCAL DISPARITY CONTRIBUTION 2,570,152 2,813,723 2,813,723 TIF 229,872 240,234 240,234 NET TAX CAPACITY 9,305,847 10,028,799 9,607,799 The Tax Capacity is composed of Residential, Commercial and Public Utility properties. The graph reflects the 2017/2018 values (latest available) by each class of property. 2018 TAX CAPACITY RESIDENTIAL COMMERCIAL PUBLIC UTILITY OTHER A change in valuation in anyone of the separate classes can have an impact on the remaining properties. The downward adjustment of 7.6% to the Public Utilities with the 7.1 % increase in residential properties values for 2019 is estimated to shift the share of the tax capacity for residential properties from 30.41% to 32.77%. This calculates to a 3% - 6% increase in property taxes for residential taxpayers. The unique total tax capacity of the city that is shared by residential, commercial and public utility on approximately 1/3 basis for each. The result of this shared capacity for residential property means that 2/3 of the tax burden is shared by the commercial property along with the public utility, Xcel Energy. Local Tax Rate The City's Tax Rate for the general levy for 2019 is estimated to be 50.139% per $1,000 of tax capacity value. This represents a decrease of 7.9% from 2018 rates of 54.462%. The Tax Rate is applied to the tax capacity value of the property to calculate the property taxes due. An increase in tax rate would mean an increase in taxes if the tax capacity value PBWSPof 158 of the property remained the same from one year to the next, while a decrease in tax rate should decrease the taxes. With the proposed General Fund budget of $5,800,888 supported by a tax levy totaling $5,090,246 - residential properties in the City will see no change in their city taxes. This decrease is a direct result of reductions to the 2019 Budgeted Expenditures and use of Fund Balance to balance the 2019 budget. See the following comparison of taxes for a Median Value Oak Park Heights Residence. COMPARISON OF RESIDENTIAL TAXES 2014-2019 2014 2015 2016 2017 2018 2019 MEDIAN VALUE PER COUNTY $167,200 $195,441 $205,800 $208,800 $210,300 $ 225,600 INC (DEC) IN MKTVALUE (PER COUNTY) 1.10% 17.80% 0.50% 1.40% 1.00% 7.10% TAX CAPACITY $7,667,355 $8,405,616 $8,614,478 $8,804,586 $9,305,847 $ 9,607,727 TAX RATE 59.641 56.804 57.725 56.143 54.462 50.14 CALCULATED TAXES $864.84 $1,062.70 $1,078.05 $1,068.69 $1,047.98 $ 1,046.56 Utility Funds Revenues and Expenditures WATER UTILITY Operating expenditures in the Water Utility Fund for 2019 budget increased by 3% to $402,010. Capital Expenditures increased to reflect the adjustments in transfers to the Renewal and Replacement Capital Fund which reflect the actual deprecation. This amount increased due to the replacement of water infrastructure in the past few years. City policy is to transfer and amount to the Capital Project Fund that is equal to the depreciation expense for the current year. This is to assist in the cost of future infrastructure replacements. Rates were increased by 10.0% to meet the needs of the Water Fund for 2018. The expected revenue for 2018 and 2019 is enough to support the budgets and no rate increase is necessary. SEWER UTILITY The Sewer Utility Fund expenditures for 2019 are anticipated to decrease $66,039, -8.86% as compared to 2018. Charges from Metropolitan Council Environmental Services were decreased $79,021 or 15.06%. This was the result of a correction by MCES to the flow data for the City. Corrections to the City's billings were made from 2013-2018. Sewer Rates were increased in 2018 based on the incorrect billing from MCES for that period. The MCES credit of $103,430 for 2018 incorrect billings was refunded to the City's sewer customers with a onetime $80 rebate. The increase in sewer rates for 2018 generates surplus revenue to support the expenditures for 2019. It is recommended to decrease the rates for 2019. STORM WATER UTILITY The Storm Sewer Utility Fund revenues will remain the same for 2019, while expenditures are expected to decrease $26,895. This decrease is due to a reduction in funds needed to support the Comprehensive Plan Study. The study is near completion and should require no additional funding from the Sewer Utility. There is no proposed change to rates for 2019. Pr&MY,f 158 As MS4 regulations for storm water management are implemented, the expenditures are expected to increase. Future rates will need to be reviewed to determine if the required expenses will be met with the present rate system. UTILITY FUND BUDGET SUMMARY Utility Fund Budget Summary 2012GO CIP REFUNDING BONDS 2014GO CAP IMP BONDS 2018 2019 $ Increase % Increase Budget Budget Decrease Decrease Water Utility Fund $ 1,057,904 $ 1,094,689 $ 36,785 3.48% Sewer Utility Fund $ 1,085,622 $ 1,079,623 $ (5,999) -0.55% Storm Water Utility Fund $ 111,555 $ 84,660 $ (26,895) -24.119'0 For additional information see the 2019 Utility Rate Study. Debt Service Funds As of December 31, 2018 the City will have outstanding debt, including interest, in the amount of $7,729,087. The following chart reflects the future scheduled debt payments for the following bond issues: SCHEDULED DEBT YEAR ENDING 2012GO CIP REFUNDING BONDS 2014GO CAP IMP BONDS TOTAL TOTAL 31 -Dec PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST P&I 2019 340,000 92,258 375,000 57,800 715,000 150,058 865,058 2020 360,000 85,458 375,000 50,300 735,000 135,758 870,758 2021 380,000 78,258 350,000 42,800 73Q000 121,058 851,058 2022 400,000 70,658 350,000 35,800 750,000 106,458 856,458 2023 430,000 62,658 325,000 28,800 755,000 91,458 846,458 2024 455,000 54,058 325,000 19,050 780,000 73,108 853,108 2025 495,000 44,958 310,000 9,300 805,000 54,258 859,258 2026 525,000 35,058 - - 525,000 35,058 560,058 2027 545,000 24,295 - 545,000 24,295 569,295 2028 585,000 12,578 - 585,000 12,578 597,578 4,515,000 560,237 2,410,000 243,850 6,925,000 804,087 7,729,087 The city sold $5,140,000 Advance Refunding Crossover Bonds to prepay the GO Capital Improvement Bonds of 2008. This reduced the future scheduled tax levies for debt by $495,000. The 2008 Bonds were called and paid in 2016. The Refunding bonds are scheduled to be retired in 2028. The G.O. Capital Improvement Bonds of 2009 were issued in 2009 to provide additional financing for the construction of the City Hall. This bond is scheduled to be repaid by a General Obligation Debt Levy. The bonds are scheduled to retire in 2019. The City called the bonds in 2018 and paid them in full. During 2014 the City issued $3,775,000 General Obligation Bonds for the 2014/2015 Street Reconstruction projects. This bond is scheduled to be repaid by General Obligation Debt Levy, Special Assessments, and a transfer from the Water Utility Fund. The bonds will be paid off in 2025. Aa*9444of 158 Budgeted Projects Fund The Budgeted Projects Fund was established to fund capital purchases for public works, police, administration, etc. The revenues received in this fund are transfers in from the General Fund and the Utility Funds. Revenue received for tree replacement and occasionally revenue received as donations are also deposited in this fund. For the year 2019 the City has budgeted transfers from the General Fund Budget in the amount of $596,500 and transfers in from the Utility Fund in the amount of $139,975. The anticipated expenditures for 2019 are $368,821 for sealcoat/crack seal, park and trail improvements and maintenance, police vehicles and radios, tree planting, computers and software and other items. PagLF4of158 "EXHIBIT A GENERAL GOVERNMENT GENERAL MANAGEMENT & BUILDING MAYOR & COUNCIL LEGAL ELECTIONS CITY ADMINISTRATION PLANNING & ZONING FINANCE COMPUTER AUDIT INSURANCE ASSESSING ENGINEERING COUNCIL CONTINGENCY PUBLIC SAFETY POLICE FIRE PROTECTION BUILDING INSPECTIONS EMERGENCY MANAGEMENT ANIMAL CONTROL PUBLIC WORKS PUBLIC WORKS -STREET MAINTENANCE PUBLIC WORKS -SNOW REMOVAL PUBLIC WORKS -STREET LIGHTING ARBORIST SANITATION & WASTE TREE REMOVAL PARKS AND RECREATION PARKS OTHER EXPENDITURES TRANSFERS OUT TOTAL GENERAL FUND EXPENDITURE GENERAL FUND EXPENDITURE BUDGET SUMMARY 2016 2017 2018 2019 INCREASE ACTUAL ACTUAL BUDGET BUDGET (DECREASE) % $166,313 $149,357 $167,275 $165,616 ($1,659) -1.11% $86,166 $91,633 $109,504 $108,487 ($1,017) -1.11% $19,276 $22,898 $30,000 $27,000 ($3,000) -13.10% $6,120 $1,660 $6,300 $830 ($5,470) -329.52% $268,577 $276,103 $284,673 $290,720 $6,047 2.19% $27,873 $37,256 $31,500 $31,100 ($400) -1.07% $194,040 $199,898 $212,990 $254,705 $41,715 20.87% $36,724 $35,760 $47,700 $44,000 ($3,700) -10.35% $25,246 $32,800 $34,000 $35,000 $1,000 3.05% $352,279 $388,797 $424,042 $468,205 $44,163 11.36% $23,068 $24,039 $25,000 $26,000 $1,000 4.16% $18,833 $24,274 $30,000 $25,000 ($5,000) -20.60% $768 $786 $15,000 $15,000 $0 0.00% $1,288,956 $1,297,433 $1,463,775 $1,527,550 $63,775 4.92% $235,587 $246,982 $257,000 $263,200 $6,200 2.51% $97,900 $98,752 $108,614 $108,015 ($599) -0.61% $97 $2,214 $1,620 $1,120 ($500) -22.58% $178 $920 $1,650 $700 ($950) -103.26% $57,701 $66,322 $105,675 $81,670 ($24,005) -36.19% $93,779 $114,437 $152,000 $153,000 $1,000 0.87% $65,232 $61,438 $70,600 $66,000 ($4,600) -7.49% $430 $623 $5,855 $855 ($5,000) -802.57% $204,434 $203,997 $217,000 $222,600 $5,600 2.75% $33,735 $34,725 $35,000 $35,000 $0 0.00% $164,311 $142,813 $180,345 $183,115 $2,770 1.94% $2,142,004 $2,528,949 $1,791,320 $1,666,400 ($124,920) -4.94% $5,609,627 $6,084,866 $5,808,438 $5,800,888 ($7,550) -0.12% 12/7/2018 EXHIBITA GENERAL FUND EXPENDITURE BUDGET SUMMARY Page 156 of 1 gage 16 Oak Park Heights Request for Council Action Meeting Date December 11, 2018 Agenda Item Title Resolution A pproving the 2019 Tax Levy Time Required 1 Minutes Agenda Placement New Business Originating Department/Requestor Finance -Betty Caruso Finance Director Requester's Signature��` Action Requested Approve Resolution for 2019 Tax Levies Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). The Proposed 2019 Tax Levy is $5,090,246. This represents a 4.47% decrease to the 2018 tax levy. The Tax Levy will be Certified as follows: The General Fund Tax Levy - $5,090,246 The General Obligation Debt Levies for 2018 are: a 2012 G O Capital Improvement Bonds - $0. ($430,000 Scheduled- paid for by General Fund Levy) a 2009 G O Capital Improvement Bonds - $0. ($145,000 Scheduled- BOND WAS CALLED IN 2018.) a 2014 G O Capital Improvement Bonds - $0 ( $40,000 Scheduled -paid for by General Fund Levy) Attached is a copy of the Resolution for the 2019 General Fund Levy, and the cancellation of the Bonded Indebtedness Levy For General Obligation Capital Improvement Bonds as listed above. I have prepared the resolutions for the 2019 Tax Levy based on the present budget. If during the TNT hearing any changes are made by the council, l will change the resolution accordingly. Action Request Adopt Resolution for the 2019 Tax Levy with the Corresponding Budget Resolution and include any changes as directed by council. Page 157 of 158 RESOLUTION 18-12-47 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE 2019 GENERAL FUND LEVY, AND THE CANCELATION OF THE BONDED INDEBTEDNESS LEVY FOR GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS OF 2009, GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS OF 2012 AND GENERAL OBLIGATION CAPTIAL IMPROVEMENT BONDS OF 2014 WHEREAS, the City Staff has prepared and submitted to the City Council the proposed general fund levy for calendar year 2019; and, WHEREAS, the City Council for the City of Oak Park Heights has determined that the proposed general fund levy as submitted by the City Staff is in the best interests of the citizens of the City of Oak Park Heights. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Oak Park Heights: 1.That the City Administrator is hereby authorized and directed to certify to the Washington County Tax Accounting and Research Department the General Fund levy for the City of Oak Park Heights for calendar year 2019 in the amount of $5,090,246. 2.That the City Administrator is also authorized and directed to cancel the scheduled tax levy of $430,000 for the General Obligation Capital Improvement Bonds of 2012; $145,000 for the General Obligation Bonds of 2009; and $40,000 of the General Obligation Bonds of 2014. Passed by the City Council for the City of Oak Park Heights this 11th day of December, 2018. Attest: Eric A. Johnson Administrator Mary McComber, Mayor Page 158 of 158