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HomeMy WebLinkAbout12-14-2021 Council Packet CITY OF OAK PARK HEIGHTS CITY COUNCIL MEETING AGENDA TUESDAY, DECEMBER 14, 2021 AT 6:00 PM This meeting will be conducted in person at City Hall Council Chambers AND by video/telephone conference due to the ongoing COVID-19 health pandemic. The meeting will follow the provisions of Minnesota Statute § 13D.021. Members of the public may either attend the meeting in person at City Hall in the Council Chambers or may remotely listen to the meeting as provided in 13D.021, Subd. 3, subject to such person paying for any added cost incurred by the City as a result of the additional connection. The open meeting can be viewed remotely online at: https://us02web.zoom.us/j/4786278054 or by calling (312-626-6799)and entering meeting ID 4786278054. Please contact the City at 651-439-4439 or jpinski@cityofoakparkheights.com in advance of December 14, 2021 if you have any questions about attendance or access. 6:00 p.m. L Call to Order/Approval of Agenda Estimated times 6:00 p.m. IL Council/Staff Reports A. Mayor McComber B. Councilmember Dougherty C. Councilmember Johnson D. Councilmember Liljegren E. Councilmember Runk 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). 6:05 p.m. IV. Consent Agenda (Roll Call Vote) A. Approve Bills & Investments B. Approve City Council Minutes—November 23, 2021 (pg. 5) C. Adopt Resolution for 2022 Liquor, Tobacco, and Amusement License Renewals (pg. 11) D. Approve Spring and Fall Clean-up Dates for 2022 —May 7 and October 1 (pg. 15) E. Adopt Resolution Designating the Polling Location for 2022 Elections in the City of Oak Park Heights (pg. 17) F. Approve Resolution for Certification of Delinquent Taxes (pg. 19) G. Approve Resolution Designating 2022 Checking and Bank Depositories (pg. 21) H. Approve Budget Adjustment Resolution for Unexpected 2021 Expenditures and the Funding Sources (pg. 23) I. Approve 2022 Area Charge for Connection to Water, Sewer and Storm Sewer(pg. 27) J. Approve 2022 Engineering Rates (pg. 31) K. Approve Salary Adjustment for Exempt Employees (pg. 35) L. Approve the Purchase of New Police Vehicle (pg. 37) M. Approve Purchase of Replacement Police Rifles (pg. 39) Page 1 of 118 6:05 p.m. V. Public Hearings A. Truth in Taxation Hearing—2022 Budget Presentation (pg. 43) 6:15 p.m. VL Old Business A. Sidewalk Improvements —58th Street(East of Osgood Ave.) (pg. 51) 6:20 p.m. VII. New Business A. Resolution Approving the 2022 Budget(pg. 59) B. Resolution Approving the 2022 Tax Levy (pg. 63) C. 2022 Water and Sewer Rate Study and Review of Storm Water Rates (pg. 65) D. Adopt Amended CC 102 Master Fee Schedule (pg. 10 1) E. Council Appointments - 2022 (pg. 105) F. Redistribution of 2021 ARPA Funds (pg. 107) G. Sanitary Sewer Pipe Segment Lining (pg. 111) 7:00 p.m. VIII. Other Council Items or Announcements 7:00 p.m. IX. Adjournment Page 2 of 118 Tw q Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Recycling Award Time Req. 0 Agenda Placement Staff Reports Originating Department/Requestor Administration/Jennifer Pinski 1 Requester's Signature 1 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 118 4kCity of Oak Park Heights 14168 Oak Park 8hrd.N•Oak Park Heights,MN 55082+Phone(651)439-4439.Fax{651)439-0574 December 2, 2021 Robin Anthony 13992 551h Street N Oak Park Heights, MN 55082 Dear Robin: 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 2, 2021, 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 TREE CITY U.S.A. Page 4 of 118 WT44 Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Approve City Council Minutes November 23, 2021 Time Req. 0 Agenda Placement Consent Originating Department/Requestor Administration/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. Page 5 of 118 CITY OF OAK PARK HEIGHTS TUESDAY, NOVEMBER 23, 2021 CITY COUNCIL MEETING MINUTES HELD AT CITY HALL AND VIA VIDEO CONFERENCE PER MN STAT. 13D.021 I. Call to Order/Approval of Agenda: Mayor McComber called the meeting to order at 6:02 p.m. Present: Councilmembers Dougherty, Johnson, Liljegren and Runk. Staff present: City Administrator Johnson, Police Chief Hansen, Assistant City Administrator/City Clerk Pinski, City Attorney Sandstrom, City Planner Richards, and City Engineer Mann. Absent: None. Mayor McComber added "Joint Powers Agreements & Resolutions Relating to Criminal Justice Data Communications with the State of Minnesota"to the Consent Agenda as Item H. Councilmember Dougherty, seconded by Councilmember LiIjegren,moved to approve the Agenda as amended. Carried 5-0. II. Council/Staff Reports: A. Mayor McComber: She reported she attended the NLC Conference the previous week, the bonding tour on November 18, and the Bayport Fire Department meeting on November 10; the next JAZB meeting was set for December 1; and the Coalition of Utility Cities meeting was set for December 14. B. Councilmember Dougherty: He reported he attended the Cable Commission on November 15, the ribbon cutting for St. Croix Event Center, and the bonding tour.. C. Councilmember Johnson: She reported that she attended the bonding tour and that the November Parks and Trails Commission meeting was cancelled. D. Councilmember Liljegen: He reported he attended the Planning Commission meeting on November 18, and the next JAZB meeting was set for December I from 3:00—4:30 p.m. E. Councilmember Runk: He reported he attended the Middle St. Croix Watershed Management Organization meeting, the bounding tour, and the CVB meeting. He said that the CVB director was leaving at the end of her contract, and the CVB would be meeting to discuss that position. F. Staff. Police Chief Hansen reported there had been an increase in stolen vehicles in the area and reminded residents to lock their vehicle doors. He said there was a Toys for Tots drive at City Hall and Joseph's Restaurant. Page 6 of 118 City Council Meeting Minutes November 23, 2021 Page 2 of 4 He also provided a report on behalf of Fire Chief Eisinger: Santa would be coming through the City on Friday, November 26 on the fire truck, and there were increases in fires during the holiday season due to cooking and holiday lighting so residents should practice care. City Attorney Sandstrom reported that the City Council met in a closed session at the end of their last meeting to discuss pending litigation against Paul Sinz. He said Council gave direction, and no official action was taken during the closed session. Assistant City Administrator/City Clerk Pinski reported that Ann Vick of 5691 Oren Avenue was chosen as the recycling award winner. III. Visitors/Public Comment: None IV. Consent A$Zenda: A. Approve Bills & Investments B. Approve City Council Minutes—October 26, 2021 C. Approve Redpath and Company, Auditing Services for December 31, 2021 D. Approve Home Occupation Permit Renewals for 2022 E. Approve 2022 Taxi Licenses for F.D.S. Enterprises dba A Taxi F. Approve Settlement Offer--W Lookout Trail Tree Damages G. Approve Order for Replacement Police Dept Issued Tasers H. Joint Powers Agreements & Resolutions Relating to Criminal Justice Data Communications with the State of Minnesota Councilmember Runk, seconded by Councilmember Johnson, moved to approve the Consent Agenda. Roll call vote taken. Carried 5-0. V. Public hearings: None VI. Old Business: VII. New Business: A. Water Meter Replacement: Public Works Director Kegley reported that the City had funding in place for a water meter replacement project. He said the project was complex and staff requested Stantec prepare a proposal for assistance in planning and bidding. Councilmember Liljegren, seconded by Councilmember Dougherty, moved to approve Stantec's proposal to assist the City with a water meter replacement project not to exceed $49,300. Carried 5-0. Page 7 of 118 City Council Meeting Minutes November 23, 2021 Page 3 of 4 B. 2022 Mill and Overlay— .Area 7: Councilmember Runk, seconded by Councilmember Johnson, moved to approve Public Works Director Kegley's request for authorization for Stantec to design and bid a 2022 Mill and Overlay project for Area 7 not to exceed $43,500. Carried 5-0. C. 2022 City Council Meeting, Dates: Assistant City Administrator/City Clerk Pinski presented the City Council with a calendar marked with the regular meeting dates of the second and fourth Tuesday of each month and noted some conflicts on certain dates in 2022. Councilmember Liljegren, seconded by Councilmember Dougherty, moved to approve the City Council meeting dates with the following changes: cancel the first regular meetings of the month in each of June, July, and August; cancel the second regular meeting in December; and reschedule the first regular meeting in November to Monday,November 14 to canvass election results. Carried 5-0. D. Scope and Fee Amendment for Engineering Services—NorelI Avenue/60th Street Reconstruction: City Administrator Johnson reported that MNDOT asked if the City would agree to the installation of a trail in the Norell Avenue project along the north side of the frontage road that was not included in the original scope of the project. Councilmember Dougherty, seconded by Councilmember Runk, moved to approve Stantec's scope and fee amendment for engineering; services for design and bidding of a trail and modifications to 60"' Street. Carried 5-0. E. Bayport Fire Services Agreement— Request for Further Discussion: City Administrator Johnson reported that the City of Bayport was requesting a meeting with the City of Oak Park Heights and other parties to review their concerns with the Bayport Fire Department Service Agreement. He suggested that if the City wanted to participate they should appoint two members of the City Council and the Chief of Police and Finance Director to a discussion delegation for the purpose of learning about the issues the City of Bayport presented and discussing options to address the issues. Councilmember Johnson, seconded by Councilmember Dougherty, moved for Mayor McComber and Councilmember Liljegren, with Councilmember Runk as an alternate, to be appointed as discussion delegates along with Finance Director Caruso and Police Chief Hansen and to attend not more than two meetings before February 2022. Carried 5-0. F. Lookout Trail Reconstruction—Consider Change Order#2: Councilmember Runk, seconded by Councilmember Liljegren, moved to approve Change Order#2. Carried 5-0. Page 8 of 118 City Council Meeting Minutes November 23, 2021 Page 4 of 4 G. LCI Landscapes— Land_Reclaination & Grading Conditional Use Pen-nit — 5675 Newell Circle: City Planner Richards reviewed his planning report. Councilmember Dougherty, seconded by Councilmember Runk, moved to approve the Resolution. Roll call vote taken. Carried 5-0. H. Comments on Washington County Capital Im_prov_ement Plan(2022- 2026): Councilmember Liljegren, seconded by Councilmember Dougherty, moved to approve the Resolution and letter with comments. Roll call vote taken. Carried 5-0. I. Osgood Ave—Westbound Turn Lane Onto STH 36—Request to State and Washington County: Mayor McComber suggested the City Council ask Washington County and the State of Minnesota to explore the possibility of installing an additional westbound turn lane from northbound Osgood Avenue and Highway 36. City Administrator Johnson suggested that Stantec could run some geometries. Mayor McComber said those could be included to back up the request. Councilmember Johnson, seconded by Councilmember Dougherty, moved to direct staff to send a letter. Carried 5-0. VIII. Other Council Items or Announcements: Councilmember Runk announced that he and Councilmember Johnson had been coordinating a thank you surprise for City staff. IX. Adiourn: Councilmember Liljegren, seconded by Councilmember Johnson, moved to adjourn at 7:13 p.m. Carried 5-0. Respectfully submitted, Approved as to Content and Form, Jennifer Pinski Mary McComber City Clerk Mayor Page 9 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 10 of 118 Jak Park Heights : eazzest for Council Action Meeting Date December 14, 2021 Agenda Item Adopt Resolution for 2022 Liquor, Tobacco, and Amusement License Renewals Time Req. 0 Agenda Placement Consent Originating Department/Requester Ad 'nistration/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 Resolution. All fees have been paid and the background checks were completed by the Oak Park Heights Police Department. I recommend approval of the attached Resolution. Page 11 of 118 CITY OF OAK PARK HEIGHTS RESOLUTION 21-12-37 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 2022 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 14te day of December, 2021. Mary McComber Mayor Attest: Eric A. Johnson City Administrator Page 12 of 118 EXHIBIT A CITY OF OAK PARK HEIGHTS 2022 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 Club Tara Hideaway Letru Inc. dba Stillwater Bowl & Lounge Lo, Inc. dba Joseph's Family Restaurant Muddy Cow Oak Park Heights dba Muddy Cow Edgar Alexis Gomez Alcocer dba Fiesta Mexican Grill 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 Lo, Inc. dba Joseph's Family Restaurant Muddy Cow Oak Park Heights dba Muddy Cow Edgar Alexis Gomez Alcocer dba Fiesta Mexican Grill Club Liquor License VFW 323 dba Greeder-Hinds Comfort Post On-Sale Wine License Tan's, Inc. dba Golden Crown Restaurant On-Sale Non-Intoxicating Liquor License Tan's, Inc. dba Golden Crown Restaurant Page 13 of 118 City of Oak Park Heights 2022 Licenses Page 2 Off-Sale Non-intoxicating Liquor License Kowalski Companies Inc. dba Kowalski's Market 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 LRS Enterprises dba Sodie's Cigar&Pipe Northern Tier Retail LLC dba Speedway#4549 Wal-Mart Stores, Inc. dba Wal-Mart Store#1861 Walgreens #06916 Keep it Growing LLC dba Keep it Growing Page 14 of 118 M l Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Approve Spring and Fall Clean-up Dates for 2022 —Max 7 and October 1 Time Req. 0 Agenda Placement Consent Originating Department/Requestor Administration/Jennifer Pinsk] Requester's Signature Action Requested Approve Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). Staff has reserved Saturday, May 7 and Saturday, October 1 with the City's garbage hauler and Andersen Coij)oration for the Spring and Fall Clean-up events. The time would remain the same as last year: 7:30am to 1:OOpm. I request approval of those dates. Page 15 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 16 of 118 Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Adopt Resolution Designating the Polling Location for 2022 in the City of Oak Park Heights Time Req, 0 Agenda Placement Consent Originating Department/Request rLdministration/Jennifer Pinski i Requester's Signaturd� Action Requested Approve Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 17 of 118 RESOLUTION 21-12-38 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION DESIGNATING THE POLLING LOCATION FOR 2022 ELECTIONS IN THE CITY OF OAK PARK HEIGHTS WHEREAS, there was a change made during the 2017 legislative session to State Statute 204B.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 2022 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 14" day of December, 2021 Mary McComber ATTEST: Mayor Eric A. Johnson City Administrator Page 18 of 118 off" Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Time Required: I minute Agenda Item Title Certification of Delinquent Utility Biilin�', Agenda Placement Consent Originating Department/Requestor Finance—Betty Caruso, Finance Director Requester's Signature Action Requested .Approve the attached Resolution App1-oving Certification of Delinquent Utility Charges to the County Auditor for Collection With the 2022 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 3c and the city ordinance of 1001.04 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 2022 tax billing. The list may be subject to changes due to payments being accepted through 12/10/21 and the payments that may arrive at the city through the mail. 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 19 of 118 CITY OF OAK PARK HEIGHTS COUNTY OF WASHINGTON AND STATE OF MINNESOTA RESOLUTION 21-12-39 A RESOLUTION APPROVING CERTIFICATION OF DELINQUENT UTILITY CHARGES TO THE COUNTY AUDITOR FOR COLLECTION WITH THE 2022 TAX BILLS WHEREAS, the following properties have delinquent utility bills as of December 14, 2021 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, 2021; 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, be certified to the County Auditor for Collection with the 2022 Tax Bill. Passed by the City Council of Oak Park Heights this 14th day of December, 2021. Mary McComber Mayor Attest: Eric A. Johnson City Administrator Page 20 of 118 W LA Oak Park Heights Request for Council Action Meeting Date: December t4, 2021 Agenda Item Title: Approve Resolution Designating 2021 Checking and Bank Depositories Time Required 1 minute Agenda Placement. Consent Originating Department/Requestor Betty Caruso, Finance Director Requester's Signature Action Requested : .Approve Resolution designating 2022 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 remaining institutions hold the other city investments: First State Bank and Trust, First Resource Bank, RBC Wealth Management, 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. 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 First State Bank and Trust Wells Fargo Advisors, LLC US Bank (Bank used by 4M for transactions) First Resource Bank Oppenheimer& Co. Inc (not presently used) RBC Wealth Management Minnesota Municipal Money Market Fund (4M) Page 21 of 118 CITY OF OAK PARK HEIGHTS RESOLUTION 21-12-40 A RESOLUTION DESIGNATING 2022 CHECKING& BANK DEPOSITORIES MidWestOne Bank—Checking and Investments First State Bank and Trust-- Investments US Bank—Investments Minnesota Municipal Money Market Fund- 4M Fund—Investments Wells Fargo Advisors, LLC—Investments First Resource Bank—Investments RBC Wealth Management—Investments Oppenheimber& Co, Inc - Investments Passed by the City Council of Oak Park Heights this 14th day of December 2021. Mary MCComber, Mayor ATTEST: Eric A. Johnson Administrator Page 22 of 118 Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Time Required: 1 zein Agenda Item Title: Approve Budget Adjustment Agenda Placement Consent Originating Department/Requestor Betty Caruso -Finance Director Requester's Signature & ' -1 Action Requested Approve Budget Adjustment Resolution Unexpected 2021 Expenditures and the Funding Sources Background/,Justification (Please indicate if any previous action has been taken or if other public bodies have advised): The City 2021 Budget was adopted in December of 2021, since adoption the following changes have occurred: 1) During 2021 expenditures outside the normal budget were incurred as listed: • Costs of Illegal Tree Removal $9,700 • Storm Damage — Tree/Brush Removal $6,600 • ARPA Premium Pay $12,498 • Police Training- refunded by the County $3,043 2) During 2021 revenue outside the normal budget was received as listed: • Small Cities Grant $73,500 • Legal Settlement- Sinz tree removal $96,000 • ARPA funding of Premium Pay $12,498 • Donations $ 715 • Washington County training Reimbursement $ 3,043 The items listed above affects the line items of departments budgets and can cause shortages of the funds available for the regular operations of the city. The budgets should be adjusted to reflect the amounts and also for the policy of transferring funds such as the Small Cities Grant to Budgeted Projects Fund to be utilized for street maintenance with in the state guidelines, along with the ARPA funds for premium pay and the donations received for the police to be used for police promotions. The list of adjustments includes the line item account numbers that affected by these amounts. The purpose of the adjustments is to reflect the city's acknowledgement of these expenses and revenues and their uses. Action Request: Adopt the Resolution for the Budget Adjustments and use of $6600 Fund Balance- Contingency for the storm damage that was incurred dur 2021. Page 23 of 118 UST OF 2021 BUDGET ADJUSTr,,IENTS 12/14/21 ADOPTED ADJ USTED BUDGET BUDGET CHANGE SPvl ALL CITIES GRA ; S- L L C- E S (73.5W) (73 5001 PROJEC-S E 74500 7- '-ans' —:—i--sforuse on Sreez P-C S'a,e QerM5SC w USA- SI NZ -UAL ZS3�om 45.00G 6000 '- om i56,000 _EG,AL 7 3011 30,000 3Aom V- - i 1 150 900 70D IULCH Assn ng-07expenfes,ncurred due tothe � Im3a ---a 7EE�,,J%- PJG C7JAL 45000 51.600 6 60(3 J f PJC C F 9173 om 966.400 6m) ARPA TRANSFER FOR PRE%lWool PAY E 77 (4.999) (4 9 (3.000) (�oxl 7,,NSH-�&J-,.-DPA FUND 12,498 :DC.11"A- ONS �:---:sc M) (715) (715) 7-R-N S F E R-0 B J X E-E?-", P R OJ EC 7S :a-I L 3 715 715 ADJUSTMENT FOR VvIASH COJNTY FUNDING OFFICER aO43 RE FUN C* (ZO43) Record re:und L- - Page 24 of 118 RESOLUTION 21-12- CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING ADJUSTMENTS TO THE 2021 BUDGET WHEREAS, The City Council adopted the 2021 budget for calendar year on December 8, 2020, and, WHEREAS, the City Council for the City of Oak Park Heights during the 2021 incurred expenditures for storm damage, illegal tree removal, and payments for premium pay from COVID -ARPA funds, and additional police training. WHEREAS, the City Council for the City of Oak Park Heights recognizing ARPA grant revenue reimbursement for premium pay, Small Cities Grant funds, Legal Settlement for the tree removals, county reimbursements for police training and fund balance contingency funds as funding sources for the unexpected expenditures; NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Oak Park Heights to adjust the 2021 General Fund Budget for the following list of adjustments: Page 25 of 118 LIST OF 20121 BUDGET ADJUSTMENTS 12/14/21 ADOPTED ADJUSTED BUDGET BUDGET CHANGE SMALL CITIES GRANT SMALL CITIES FUNDING 101-36120-100 - (73,500) (73,501) TRANSFER TO BUDGET PROJECTS 101-44444-920 1,746,450 1,819,950 73,5010 To transfer funds for use on Street Projects-per state permissble use SINZ TREE PLANTING-CONTRACTUAL 101-42520-212 39,000 45,000 6,000 REFUNDS-REIMBURSMENT 101-38050-000 60,000 156,000 (96,000) LEGAL 101-40200-103 27,000 30,000 3,000 OMG-MIDWEST HYDRO MULCH 101-42040-311 150 900 700 Funding of expenses incurred due to the illegal Tree Removal TREE PLANTING-CONTRACTUAL 101-42520-212 45,000 51,600 6,600 FUND BALANCE-CONTINGENCY 101-39999-000 973,000 966,400 (6,600) Funding of storm damage-tree removals ARPA TRANSFER FOR PREMIUM PAY TRANSFER IN-GENERAL 101-39020-000 - (3,999) (3,999) TRANSFER IN-WATER 705-39020-000 (4,999) (4,999) TRANSFER IN-SEWER 706-39020-000 - (3,000) (3,000) TRANSFER IN-STORM 707-39020-000 (500) (500) TRANSFER OUT ARPA FUND 209 44444-920 - 12,498 12,498 Transfer ARPA funds for employee permium pay DONATIONS 401-39020-000 (715) (715) TRANSFER TO BUDGETED PROJECTS 101-44444 920 715 715 Transfer Donations to the Police Department to Budgeted Projects Fund per policy ADJUSTMENT FOR WASH COUNTY FUNDING-OFFICER TRAINING POLICE TRAINING 101-41510-203 3,043 REFUNDS AND REIMBURSEMENTS 101-38050-000 (3,043) Record refund from Wash County to pay for OfficerTraning Passed by the City Council for the City of Oak Park Heights this 14th day of December 2021. Attest: Mary McComber, Mayor Eric A. Johnson Administrator Page 26 of 118 fir AL Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Title Approve 2_022 Area Charge for Connection to Water, Sewer and Storm Sewer Systems _ _ Time Required I min Agenda Placement Consent Originating Department/Requestor_ Finance —Betty Caruso, Finance Director Requester's Signature ` Action Requested Approve the 2022_Arca Charge for Connections to Municipal Water Systems, Sanitary Sewer Svstems and Storm Sewer Svstems Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). The City Engineer has calculated the City's utility area charges for 2022 and is recommending an 8.4% increase in the area charges for water, sanitary sewer, and storm sewer. This increase percentage is based on the Construction Cost Index. I recommend approval of the area charges for sanitary sewer, water main, storm sewer and TSMP area storm sewer as of January 1, 2022 per the attached recommendation from the City Engineer. Page 27 of 118 2335 Highway 36 West,St.Paul MN 55113-3819 ta rite November 22, 2029 File: 193801828 Attention: Eric Johnson City of Oak Park Heights 14168 Oak Park Blvd, N. Oak Park Heights, MN 55082 Reference: Utility Area Charges Dear Eric, The City has established a system of area charges to assist in financing trunk utility improvements. These charges should be adjusted from time to time to recover additional costs incurred due to inflation, capitalized interest, or revisions/updates to trunk facilities. The table on the following page is a tabulation of the current area charges and those proposed for development initiated after January 1, 2022. Adjustments to the City's utility area charges are tied to the ENR national Construction Cost Index (CCI), which is a benchmark of the current cost of materials and labor in the construction industry. The City's utility area charges were last updated in November 2020. From the third quarter of 2020 to the third quarter of 2021, the CCI has increased 8.4%, which is the current increase we are recommending to the City's area charges. If you have any questions or require further information, please call me at (612) 712-2085. Regards, Stantec Consulting Services Inc. Lee M. Mann, P.E. Principal Phone: 612-712-2085 lee.mann@stantec.com Attachments: Utility Area Charge Updates for 2022 ENR Sep 2021 Cost Index ENR CCI Partial History c. Betty Caruso, Julie Hultman —City of Oak Park Heights Kevin Sandstrom —City Attorney Design wif,°,co-orn:n4y in rn7 nd Page 28 of 118 O co to M y co W) O co y OD 1' V tp _ O N w to C4 r C N M r C 3.m fl1 (U 0. tR 69 69 44 L I- ti N co _ M m c7 n N Co N N O X M r UJ N} El=l Qj (�9 N O r E- -Q M M O [l to V O e- A o N M N N '- :_ N ❑ LL 4'1 to 40- EH a N N n l0 �- Z (,oOD00 M CD .fl) r*7 CO O to X r N L (1) 19t N C- 1f) N J (0) r CA M V! tp _ L O _ a 0 .� N (p � 0 V,_ O C4 r r W (V (V am L EA40, ❑ "a ER �: N m co LO N O aCL J N r W � X r (� W ER of Eta Ef} O o y N V W CO) V y CD cc Q 00 a) O O t0 w .N (V O N M r N r L = � oN 49 2 D m c, N M N CO LO r T r- E �_ ��— cc ao M r E@ N V N O o 07 X r r U ln� W (fl Efl vn EH m Q L1 ❑ a) (1) U) U) ("D E E o O (1) WIW T N 4 N N T T Page 29 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 30 of 118 W V. Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Approve 2022 Engine nRates Time Req. 0 Agenda Placement Consent Originating Department/Requestor AdMinistration/Jennifer Pinski Requester's Signature -� = Action Requested Approve engineering rate schedule for 2022 Background/Justification(Please indicate any previous action has been taken or if other public bodies have been advised). Attached is the 2022 Rate Schedule for Stantec Consulting Services Inc. which is used for the City and for private development review and inspection services. Stantec is proposing an increase of no more than 3.8% over the 2021 rates. Page 31 of 118 Stantec Consulting Services Inc. 733 Marquette Avenue Suile 1000 Minneapolis MN 55402-2309 (S StantecTel: (612) 712-2000 December 9, 2021 File: 193801828 Attention: Eric Johnson City of Oak Park Heights 14168 Oak Park Boulevard N Oak Park Heights, MN 55082 Reference: 2022 Stantec Rates Dear Eric, We wish to thank the City of Oak Park Heights for allowing us to partner with you in planning and implementing your municipal projects. To help you prepare for projects next year, we are enclosing our 2022 hourly rate schedules for municipal services and for standard (private development) review and inspection services. Stantec is committed to employing excellent people; keeping our technical capabilities innovative and effective to serve you best. As such, we are proposing to hold your Stantec team's rates in Oak Park Heights to an increase of no more than 3.80. We continue to strive internally to minimize cost increases and look for cost saving measures in our day-to-day operations with staff to provide the greatest value for your engineering investment. We are very grateful for our relationship with Oak Park Heights. Your Stantec Team is dedicated to providing the City with high quality service while working within your budget constraints. We look forward to continuing to partner with you in 2022. If you have any questions or require further information, please call me at (612) 712-2085. Regards, STANTEC CONSULTING SERVICES INC. Lee M. Mann, P.F. Principal Attachments: Municipal Rate Table Standard Rafe Table (for Private work) Page 32 of 118 2022 RATE SCHEDULE (Municipal) Classification 2022 Senior Principal $ 168.00 - $ 207.00 Principal $ 160.00 - $ 196.00 Specialist* $ 148.00 - $ 277.00 Project Manager $ 156.00 - $ 205.00 Senior Engineer I Scientist I Architect Landscape Architect I Planner $ 150.00 - $ 198.00 Architect I Landscape Architect $ 135.00 - $ 165.00 Land Surveyor $ 119.00 - $ 177.00 Engineer I Planner j Scientist $ 116.00 - $ 165.00 Designer I GIS I Landscape Designer Graphics I Senior Technician $ 116.00 - $ 166.00 Engineering Technician $ 92.00 - $ 134.00 Project Technician $ 62.00 - $ 88.00 Field Supervisor $ 125.00 - $ 196.00 Inspector $ 95.00 - $ 129.00 1-Person Survey Crew $ 162.00 2-Person Survey Crew $ 232.00 *Specialist: Experts in highly technical disciplines including Principal Planners, Market Analyst and Certified Industrial Hygienist These rates are adjusted annually in accordance with the normal review procedures of Stantec. Page 33 of 118 2022 STANTEC RATE SCHEDULE (Standard) Classification 2022 Senior Principal $ 220.00 - $ 256.00 Principal $ 208.00 - $ 243.00 Specialist* $ 208.00 - $ 266.00 Project Manager $ 164.00 - $ 220.00 Senior Engineer I Scientist I Architect Landscape Architect I Planner $ 179.00 - $ 220.00 Architect I Landscape Architect $ 144.00 - $ 251.00 Land Surveyor $ 144.00 - $ 179.00 Engineer I Planner I Scientist $ 132.00 - $ 188.00 Designer I GIS I Landscape Designer Graphics I Senior Technician $ 132.00 - $ 188.00 Engineering Technician $ 132.00 - $ 179.00 Project Technician $ 105.00 - $ 144.00 Field Supervisor $ 154.00 - $ 220.00 Inspector $ 105.00 - $ 179.00 1-Person Survey Crew $ 162.00 2-Person Survey Crew $ 232.00 *Specialist: Experts in highly technical disciplines including Principal Planners, Market Analyst and Certified Industrial Hygienist These rates are adjusted annually in accordance with the normal review procedures of Stantec. Page 34 of 118 Oak Park Heights Request for Council Action Meeting Date December 14th, 2021 Time Required: 1 minute Agenda Item Title: Approve Salary Adjustment for Exempt Employees Agenda Placement Consent Agenda Originating Department/Requestor Eric Johnson, City Administrator Requester's Signature Action Requested Approve Salary Adjustments for Exempt Employees for 2022 —effective 1/1/22. 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 3.0% wage increase for the City Clerk / Asst. City Admin. and the Accountant 11 positions. The 2022 Budget as currently proposed does have adequate funding for 3.0% increase and is expected to 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 2021 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% 2019 was 2.75% 2020 was 3.00% 2021 was 3.00% 2022 3.0%is proposed Page 35 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 36 of 118 Oak Park Heights Request for Council Action Meeting Date December 14th Time Required: Agenda Item Title: Approve the purchase of new police vehicle Agenda Placement Consent Originating Department/Requestor Chief of Police Steve Hansen Requester's Signature Action Requested Approval to order and purchase new police vehicle through the State Contract bid. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Earlier this year we ordered and replaced 3 of our patrol vehicles along with 2 admin/unmarked vehicles, all which exceeded their lifespan. Maintenance costs were substantial this year for those older vehicles and overall reliability became a concern. Thankfully all of those new squads have finally been put into service as of last month after numerous delays. I am hoping to move forward with completing the fleet change out next year and developing an appropriate rotation schedule. I am requesting the approval to order and purchase 1 police vehicle (fully marked patrol squad car) to replace our current 2017 Ford Explorer Interceptor patrol vehicle. Our current rotation for patrol vehicles is 4 years and the typical lifespan of an active patrol vehicle is 3-5 years. This rotation benefits the City in maintenance costs and improved resale value. I would like to place the order now as the anticipated delivery date will be considerably delayed until fall of 2022. The micro chip shortage and supply chain delays have also caused considerable disruption affecting sourcing issues along with inflation of electronic components. Thus, I would like to get the order in sooner rather later and also take advantage of potential cost savings now for new equipment in the squad car that needs to replaced such as lighting equipment, radio, and laptop computer. 2022-(1) Ford Interceptor Patrol Vehicle $35,000 Emergency lighting package $15,000 Squad Radio $ 5,000 Squad graphics removal/install $ 1,400 Squad computer laptop $ 4,000 Estimated total budgeted project $60,400 This has been reviewed by Finance Director Caruso and funds will be coming from the budgeted projects fund and the police computer replacement fund. Page 37 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 38 of 118 Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Time Required: Agenda Item Title: Replacement of Police Rifles Agenda Placement Consent Originating Department/Requestor Chief of Police Steve Hansen Requester's Signature Action Requested Approval to order and purchase 7 new rifles Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Currently the Police Dept has 5 surplus M-16 rifles on loan from the U.S. Federal Government.These are old 1968 production models from the Vietnam War Era. Back in 2007 OPHPD acquired these rifles under the LESO (Law Enforcement Support Office)program. Approximately 15 years ago these army surplus rifles were acquired by hundreds of law enforcement agencies and were placed into squad cars across the USA. It was a quick affordable option to allow law enforcement to achieve or match firepower capabilities against possible threats, active shooters,or acts of terrorism. Unfortunately,these rifles came with some short comings.These old rifles are much bigger and heavier than even current updated rifles that modern militaries or law enforcement use now. These older rifles and the magazines have had several malfunctions during training including misfeeding of ammo, ejection of ammo and parts falling off.They have no way of mounting an optic and can only be used with fixed iron sights.This can be problematic for accuracy and night time deployments. Updated rifles are lighter, shorter, and come with better optics capabilities for all day/night use deployments.Additionally,with updated rifles we can also fit the gun to the individual officers of all sizes. Rifles are important to have for long range lethal capabilities if needed and they are a go to perimeter weapon which allow for high velocity round penetration or stand-off capabilities if needed.To improve overall response capabilities, I am recommending each squad to have a rifle assigned to it. The police department has field tested several different rifles and options that would best fit our department. I am requesting approval to order and purchase 7 new rifles from the vendor Bravo Company Manufacturing and additional components or attachments from various other vendors which include optics,lights, suppressors, slings. 7- BCM Carbine 610-75o rifles 5.56/223 $7,500 7- OSS HXQD 556k suppressor $5,600 7- Aimpoint Rifle Optic red dots $2,800 7- Flashlight attachment $ 750 7 Sling attachments $ 700 Budgeted project estimates $17,350 Funded by the budgeted project funds Page 39 of 118 aN E E o 0 0 T a m mornv 0 c m o oNot9Q aL-+ ^ v T i o �- u - = c 4-; m m tD 0 s=c6 u > ° Coa7 N c o Lv>Oh -ovv F, N - -1 i -O m Om ° U C °U O Cai @cO U o o u. cu > O O o > v v Um i L mo .c �" v s o v U p -a -a m co c v m i N Cd C �+ >, L O C OD i O u O Q N a O c + O M v O T• 7 f- > O 01 m > O @ .O C u a) v c n m a C7 c a 3 m Y v a ° E o o L 3 m c y oo a) o o u m U o 0 o v c 0 > m m m d m 3 mL >az E v m o e amo 0 E c N 3 0 ca N 3 n T a) u m o a n v1 c a o m o �' a o ° E x '� -T a m 0 0 o N U o o a = o a a c T v v p a m a m N •= i -vmi E N@ y m u v v a c U m a L E o m cu o m ,° ° a fl- Q a o T a o a ° ' a m a c p c T T m m` > c m ,� p E o c > a c C7 v a- a N a v v p `^ m p d > u Q v o c T a m a s m c c V.a m '° E Y Q E m o aco m y v ° v 3 v a. v o v ° o f on v v v u m s c O E o o c v o m u m 3 m - c c@ � o -8 o c E a o E a ° ti m m a N o - .n c co a m o a n o c v Y O a v c E C!7 v v+'i ,�: m N a al m c _6 U io yr 'co O '� U w Ou '° a m o m O O Q a o m m L m v LL ` > 0 a E E > v o a) a V a) Y 4, � m, U X (D Y V m n m o a 'al x aj a` a o n -° a c = v T v 3 v v O Y o o y o 3 v c m E Q o .3 m a o 2 o• oa v ticn Y U o '�_ 'Y Y v v v E a=_ m e au) a o O � v E t U o "° v OoL n o = o c- �a > o N o u ® O O E E v a) U a o i 7 m ° ° N v - N c0 Q O v 30 +oa O /aA/ ) o Q 2i m�M ac °q L Y m o o m �a o > 3 Lo O v/ O H -C i _O m lmL L ++ U y c O .O m y.+ E 4- no ° v E c c -a c (7 0 m o T m a) U -i c I -a • a o -o m v°- .E i s .n co � Y ° c c T a-7 a C a a) o a) w O -a m m LV U c to c O 1� o c E m a o E v t� m o v a s o > m c v o o m E O N c.v ° x *n v a a m no o o°u > (� `o =O 5--� a m m o y - c O �n C7 a) a c m m `p o p 4 Ap a o n o aco > p a L a o v .E _ - a a o a � v o u a aQ) E o a E m m x a s a v m U L >' i (a �' m h U a u- O U C �n N o 7 am o 3 m w> 3 s T v o o ° a o Y m m rrI c E a m y a s c m ao m o c m a c m �- m ai o ,� m a) 'a 3 -a m ,,, o °- c c o 0 v 0 v v v m o o L E a v y E a o m ' L N m v c v `o > o ° .� o v a ao > v oE v E a o m` -mo m E (D . 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TNT Hearing Notices were mailed to taxpayers in the city on November 12th, giving them notice of their proposed property taxes for 2022. The TNT hearing is scheduled for December 14, 2021, 6:00 p.m. City Hall, 14168 Oak Park Blvd. N., for public input and information. The city council adopted a proposed budget$6,499,473 on September 14, 2021 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 the preliminary TAX LEVY of $6,034,373. Action Request Hold the Public Hearing Page 43 of 118 12/10/2021 CITY OF OAK PARK HEIGHTS 2022 Truth-In-Taxation Budget Meeting December 14, 2021 2022 Budget Services P—Ided Who Cay: Public Works General Government Street Maintenance Mayor and Council Snow Removal Administration and Finance Street L%hting and Signs Planning,Zoning and Engineering Tree Removal Insurance Sanitation(Garbagel) Parks and Recreation Public Safety Police Protection Capital Improvements Fire Protection Street Maintenance Program-Seal Coating/Mill and Overlay Building Inspection/Permits Storm Sewer Replacement Animal Control • Equipment and Vehicle Replacement Emergency Management Parks Buildings and Equipment Page 44 of 118 1 12/10/2021 2022 , EXPENDITURE CATEGORY (DECItIE-ASW�1 Expenditure Budget GENERAL GOVERNMENT $ 1,589,000 $ 1,653,000 $ 64,000 ROUNDED TO$1,000 PUBLIC SAFETY 1,967,000 2,125,000 158,000 PUBLIC WORKS 394,000 400,000 6,000 PARKS AND RECREATION 186,000 191,000 5,000 SANITATION 235,000 252,000 17,000 TOTAL GENERAL OPERATIONS $ 4,371,000 $ 4,621,000 $ 250,000 TRANSFERS-CAPITAL IMPROVEMENTS 1,167,000 1,299,000 132,000 TRANSFERS-DEBT 579,000 579,000 0 TOTAL EXPENDITURES $ 6,117,000 $ 6,499,000 $ 382,000 2022 Revenue 1 R Budget 1 CATEGORY Rol \D1.1)u)$ TAXES-PROPERTY $5,691,000 $ 6,034,000 $ 343,000 TAXES-OTHER 66,000 66,000 0 BUSINESS LICENSE-PERMITS 45,000 39,000 (61000) NONBUSINESS LICENSES- PERMITS 45,000 65,000 20,000 FINES&FORFEITS 45,000 35,000 (10,0001, INTERGOVERNMENTAL REVENUES 110,000 124,000 14,000 CHARGES FOR SERVICES 35,000 27,000 (81000) MISC REVENUES 74,000 109,000 35,000 FUND BALANCE USED 6,000 0 (6,000) TOTAL REVENUES $ 6,117,000 $ 6,499,000 $ 382,000, Page 45 of 118 2 12/10/2021 EXPENDITURES SUMMARY OF CHANGES EXPENDITURES: SALARIES/SHIFT CHANGES/OVERTIME $ 132,800 TO 2022 BUDGET CONTRACTUAL 12,500 (COMPARED TO THE 2021 TRAINING 26,000 FIRE 9,000 BUDGET) SANITATION 17,000 EVENT 10,000 INSURANCE-GENERAL/WC 16,400 REVENUE INSURANCE-HEALTH (13,200) SOCIAL WORKER 20,000 REVENUES: SUPPLIES 9,500 BUILDING PERMITS $ 2D,000 OTHER ACCUMULATED CHANGES 10,700 LICENSING (6.2DD) TOTALOPERATIONS CHANGES $ 25D,70D INTERGOVERNMENT-POUCEAID/SAFE SOBER 13,900 CAPITAL IMPROVMENIS: COURTFINES/CHARGES (23.700) FUNDING STREET PROGRAM $ 36,500 SRO BILLING 35,OD0 FUNDING EMERALD ASH BORE 50,000 TOTAL REVENUE CHANGES $ 39,DD0 VEHICLE AND EQUIPMENT-REALLOCATION 45,100 TOTAL CAPITAL IMPROVEMENT CHANGES $ 131,600 TOTAL CHANGESTO 2022BUDGET/TAX LEVY $ 343,300 2022 PROPOSED TAX LEVY 2022 2021 PROPOSED INCREASE %CHANGE LEVY TAX LEVY TAX LEVY OVER 2020 2022 OPERATIONS $ 3,944,562 $ 4,156,373 $ 211,811 5.37% TRANSFERS $ 1,167,450 $ 1,299,000 $ 131,550 11.27% DEBTSERVICE $ 579,000 $ 579,000 $ - 0.00% TOTAL TAX LEVY $ 5,691,012 $ 6,034y373 $ 343,361 6.03% i Page 46 of 118 3 12/10/2021 TAXES- WHO PAYS BASED ON VALUES ` IF THE TAX LEVY WAS$?00.00: WHO PAYS: VALUES FOR THE 2021 TAX LEVY (moat mmnt"lueamlkbk) • PUBLIC UTILITY(XCEL) $34.00 F COMMERCIAL $30.00 RESIDENTIAL $35.00 ALL OTHER 1,00 TOTAL $100.00 PROPERTY VALUES - CHANGES FROM 2021-2022 • FINAL VALUES FOR 2022 TAXES AVAILABLE IN FEBRUARY 2022 • COUNTY ESTIMATES(avg) • RESIDENTIAL INCREASES 3.2% • COMMERCIAL INCREASE 9.46% • PUBLIC UTILITY VALUES ESTIMATED INCREASE 9.96% (ACTUAL 2.1%INCREASE) • TOTAL TAX CAPACITY VALUE INCREASE FROM 20215% • TNT NOTICE—COUNTY USE OF OVERSTATE VALUE UNDERSTATES TAXES ° TNT NOTICE TAX RATE 50.029 VS ACTUAL 51.230 ' ACTUAL INCREASE IN TAXES—TNT NOTICE 1.5%UECREASE Page 47 of 118 4 12/10/2021 PROPOSED 2022 BUDGET 2022 TAX IMPACT FOR-RESIDEN'T'IAL PROPERTY ESTIMATED CITY TAXES HOMEVALUE 2021 ACTUAL 2022ACTUAL INCREASE VALUE BUDGET %CHANGE $ 200,000 $ 884.60 $ 926.06 $ 4L46 $ (8.32) $ 49.78 4.69% $ 250,000 $ 1,152.80 S 1,204.98 S 52.18 $ (12.59) $ 64.77 4.53% $ 300,000 $ 1,421.56 $ 1,484.48 $ 62.92 $ (16.87) $ 79.79 4.43% $ 320,000 $ 1,521.85 $ 1,588.79 $ 66.94 $ (18.47) $ 85.40 4.40% $ 400,000 $ 1,958.51 $ 2,042.88 $ 84.37 $ (25.44) $ 109.81 WHERE DOES THE THE PROPERTY TAX GO? a.ms a n�xw �'y �y PoR11l1.Ot�t�lY� IW GG C 1,J am. .. �. 0,w+r. .. t t5•r,n. h'.li i f C8123025 D PUBLIC SAFETY PUBLIC GENERAL PARKS AND CAPITAL SANITATION DEBT $0.30 WORKS GOVERNMENT RECREATION IMPROVEMENT $0.04 $0.09 $0.07 $0.26 $0.03 $0.21 Page 48 of 118 5 12/10/2021 SUMMARY BUDGET • 2022 BUDGET EXPENDITURES INCREASED $382,291 OR 6.25% • 2022 BUDGETED REVENUES OTHER THAN TAXES INCREASE$38,930 • TOTAL 2022 BUDGET$6,499,473 TAX LEVY • 2021 TAX LEVY$6,034,373-INCREASE $343,361 OR 6.03% PROPERTY VALUES • VALUES SHIFTS FROM RESIDENTIAL TO COMMERICAL SLIGHTLY • OVERALL INCREASE IN RESIDENTIAL TAXES 4.5% QUESTIONS? Page 49 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 50 of 118 Oak Park Heights Request for Council Action Meeting Date December 14th 2021 Time Required: 10 Minutes Agenda Item Title: Sidewalk Improvements—58' Street(East of Osgood Ave.) AGENDA PLACEMENT OLD BUSINESS ORIGINATING DEPARTMENT/Requestor: Eric Johnson, City Administrator Requester's Signature: _ ✓ Action Requested: Discussion. Possible Action. Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): In October of this year,the Council authorized some pre-liminary studies and cost estimates for the 58th Street Trail/Sidewalk extension-lying east of Osgood Ave.That is report is enclosed for review and discussion from Lee Mann of STANTEC.It generally discusses the following: • Preparation of memorandum to discuss proposed improvements. Memo shall contain the following: o Review of existing conditions and summary of proposed improvements o Identification conflicts with proposed walk/trail, including utility conflicts o Identification of potential easement areas o Identification of required permits o Preparation of preliminary cost estimate o Concept drawing identifying proposed improvements and key components Ultimately,the Council could disucss if it desireso- 62nd St N to proceed to construction, some further surveying is needed. Washington county �a Government Center j Funding could be derived from the City's Park and Trail Dedication fund. - which exceeds $500,000 in unallocated balance. It is ---1 � " possible that this project could be bid as an ALTERNATE to one of the City's 60th St N - 60th St N projects in 2022 - such as Mill & Overlay or z possibly the NorellAve Project. n 6 a a Such a link would be valuable to connect theti--- 0 t "Ra mie Johnson" area o the City's networks , 58th St w 58th St 3' �' tkAndersen Windows Corp Office lying to the west and linking trails from Swager Park to the east. - - 5 Page 51 of 118 Stantec Consulting Services Inc. ® Stantec 733 Marquette Avenue Suite 1000, Minneapolis MN 55402-2309 December 9, 2021 File: 193805462 Attention: Honorable Mayor and City Council City of Oak Park Heights 14168 Oak Park Boulevard Oak Park heights, MN 55082 Dear Mayor and Council: Reference: 58th Street Walk Analysis and Cost Estimate Introduction On October 26, 2021, the City Council authorized Stantec to prepare a preliminary engineering analysis and cost estimate for proposed sidewalk improvements along the north side of 58th Street N, from Osgood Avenue to 57th Street N and the existing trail entrance to Valley View Park. This engineering analysis summarizes the existing conditions and identifies proposed improvements to provide the pedestrian connection identified. Also included is a preliminary cost estimate for the proposed improvements. Existing Conditions The project area extends from Osgood Avenue N on the west to 57th Avenue N on the east. There is an existing north-south concrete sidewalk along the east side of Osgood Ave N, and an existing 8' wide bituminous trail on the east end that provides pedestrian access to Valley View Park from 58th Street N. There are 5 driveway entrances along the north side of 58th Street N that provide access to the adjacent apartment buildings, several town homes, and a church. There is currently a narrow, bituminous pathway along a portion of the north side of 58th Street N. This pathway, which is 3.5' to 4'wide, extends from Osgood Ave N to approximately 510' east of Osgood Ave N. Other existing items in the project area include mailbox banks, utility pedestals/transformers, and a fire hydrant. In general, the terrain along the north side of 58th Street N is relatively flat, with wide boulevards. The primary exception would be approximately 425' east of Osgood Ave N where there is a fairly steep grade extending north of the curb, adjacent to a stormwater pond. There is a small, block retaining wall along a portion of the existing walk. This wall is approximately 20' long and 2' in height. The existing right of way width along 58th Street N is 60'. There is approximately 13' of right of way north of the northerly curb line to accommodate construction of a wider path. Design with community in mind Page 52 of 118 December 9,2021 Honorable Mayor and City Council Page 2 of 3 Reference: 58th Street Walk Analysis and Cost Estimate Proposed Improvements To provide a connection between the two existing pedestrian routes on either end of the project area, we would recommend construction of a 6' wide pedestrian path that extends from the existing pedestrian ramp at Osgood Ave N to the existing bituminous trail at 57th Street N. The walk could be constructed adjacent to the back of the curb and be constructed of either concrete or bituminous pavement. The attached Figure 1 illustrates the proposed improvements. It is recommended that pedestrian curb ramps with truncated domes be constructed at each of the 5 driveway entrances. This will provide added pedestrian safety, and conform to other areas in Oak Park Heights where pedestrian ramps have been constructed where trails cross drive entrances. In general, a minimal amount of grading would be required to accommodate a proposed 6' wide walk. However, a retaining wall will need to be constructed behind the walkway adjacent to the existing stormwater pond identified in the existing conditions. This wall would be roughly 3'-4' in height and be approximately 140' long. Just east of this proposed wall location, there is an existing hydrant that is approximately 5' behind the curb. This hydrant will need to be relocated, and possibly replaced due to its apparent age. Relocation should be coordinated with Public Works staff. There are also several mailbox banks, small utility pedestals and a transformer which will likely need to be relocated to accommodate the proposed walk. The relocation of these facilities will need to be coordinated with the facility owners. There appears to be sufficient right of way available along the north side of 58th Street N to accommodate a 6' path the entire length, as well as a retaining wall along the north side of the walk at the location indicated. Temporary construction easements may be required to accommodate proposed grading beyond the walk/retaining wall and will be identified during the design phase. Estimated Project Costs Estimated Project Costs for both a 6' wide bituminous path and a 6'wide concrete walk are provided below. Cost estimates include a 15% construction contingency, and additional indirect (legal, engineering, administrative) costs. Detailed cost breakdowns are attached to this analysis. Table 1: Estimated Project Costs 6' Wide Concrete Walk 6' Wide Bituminous Walk Estimated Construction Cost $172,000 $142,000 15% Construction Contingency $26,000 $22,000 Subtotal Construction Cost $198,000 $164,000 Indirect Costs $50,000 $50,000 Estimated Total Project Cost $248,000 $214,000 Page 53 of 118 December 9,2021 Honorable Mayor and City Council Page 3 of 3 Reference: 58th Street Walk Analysis and Cost Estimate Next Steps If the Council wishes to proceed based on the information provided in this analysis, we will provide a proposal for preliminary survey, design and bidding services for the proposed walk extension at the first meeting in January 2022. Regards, Stantec Consulting Services Inc. MN, WI, CA MN City Engineer Senior Associate Phone: 612-712-2085 Phone: 612-712-2125 Lee.mann@stantec.com Kellie.schlegel@stantec.com Attachment: Figure 1 —Project Location,Cost Estimates c. 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(9Z db Off) N 3At/dOOJSOCL 0 LO Page 55 of 118 PRELIMINARY OPINION OF PROBABLE COST 58th STREET WALK EXTENSION 6' WIDE CONCRETE WALK OAK PARK HEIGHTS, MN DECEMBER 2021 No. Item Units Qty EE Unit Price EE Total Price 6' WIDE CONCRETE WALK 1 MOBILIZATION LS 1 $8,000.00 $8,000.00 2 TRAFFIC CONTROL LS 1 $2,000.00 $2,000.00 3 TEMPORARY MAILBOXES LS 1 $2,000.00 $2,000.00 4 STREET SWEEPER WITH PICK UP BROOM WITH HR 20 $150.00 $3,000.00 5 SILT FENCE, MACHINE SLICED LF 500 $4.00 $2,000.00 6 INLET PROTECTION EA 6 $250.00 $1,500.00 7 SALVAGE AND REINSTALL SIGN EA 5 $250.00 $1,250.00 8 RELOCATE EXISTING HYDRANT LS 1 $8,000.00 $8,000.00 9 REMOVE CONCRETE CURB &GUTTER LF 400 $4.00 $1,600.00 10 REMOVE CONCRETE WALK SF 150 $4.00 $600.00 11 REMOVE MODULAR BLOCK RETAINING WALL SF 80 $10.00 $800.00 12 REMOVE BITUMINOUS PATH SY 185 $5.00 $925.00 13 REMOVE BITUMINOUS PAVEMENT SY 140 $10.00 $1,400.00 14 SAWCUT BITUMINOUS PAVEMENT LF 400 $4.00 $1,600.00 15 REMOVE CONCRETE APRON SY 36 $15.00 $540.00 16 SALVAGE AND REINSTALL MAILBOX BANK EA 6 $400.00 $2,400.00 17 COMMON EXCAVATION CY 400 $20.00 $8,000.00 18 AGGREGATE BASE, CLASS 5, 100% CRUSHED TN 300 $21.00 $6,300.00 19 CONCRETE CURB &GUTTER LF 400 $22.00 $8,800.00 20 BITUMINOUS PAVEMENT PATCHING SY 140 $40.00 $5,600.00 21 4" CONCRETE WALK SF 5600 $8.00 $44,800.00 22 CONCRETE PEDESTRIAN CURB RAMP SF 800 $13.00 $10,400.00 23 TRUNCATED DOME PANEL SF 120 $50.00 $6,000.00 24 MODULAR BLOCK RETAINING WALL SF 650 $55.00 $35,750.00 25 TOPSOIL BORROW (LV) CY 150 $35.00 $5,250.00 26 SEED WITH BLANKET SY 1200 $2.50 $3,000.00 CONSTRUCTION SUBTOTAL $171,515.00 15% CONTINGENCY $25,727.25 CONSTRUCTION TOTAL $197,242.25 INDIRECT $50,000.00 ESTIMATED TOTAL PROJECT COST $247,242.25 Page 56 of 118 PRELIMINARY OPINION OF PROBABLE COST 58th STREET WALK EXTENSION 6' WIDE BITUMINOUS WALK OAK PARK HEIGHTS, MN DECEMBER 2021 No. Item Units Qty EE Unit Price EE Total Price 6' WIDE BITUMINOUS WALK 1 MOBILIZATION LS 1 $8,000.00 $8,000.00 2 TRAFFIC CONTROL LS 1 $2,000.00 $2,000.00 3 TEMPORARY MAILBOXES LS 1 $2,000.00 $2,000.00 4 STREET SWEEPER WITH PICK UP BROOM WITH HR 20 $150.00 $3,000.00 5 SILT FENCE, MACHINE SLICED LF 500 $4.00 $2,000.00 6 INLET PROTECTION EA 6 $250.00 $1,500.00 7 SALVAGE AND REINSTALL SIGN EA 5 $250.00 $1,250.00 8 RELOCATE EXISTING HYDRANT LS 1 $8,000.00 $8,000.00 9 REMOVE CONCRETE CURB &GUTTER LF 400 $4.00 $1,600.00 10 REMOVE CONCRETE WALK SF 150 $4.00 $600.00 11 REMOVE MODULAR BLOCK RETAINING WALL SF 80 $10.00 $800.00 12 REMOVE BITUMINOUS PATH SY 185 $5.00 $925.00 13 REMOVE BITUMINOUS PAVEMENT SY 140 $10.00 $1,400.00 14 SAWCUT BITUMINOUS PAVEMENT LF 400 $4.00 $1,600.00 15 REMOVE CONCRETE APRON SY 36 $15.00 $540.00 16 SALVAGE AND REINSTALL MAILBOX BANK EA 6 $400.00 $2,400.00 17 COMMON EXCAVATION CY 400 $20.00 $8,000.00 18 AGGREGATE BASE, CLASS 5, 100% CRUSHED TN 300 $21.00 $6,300.00 19 CONCRETE CURB &GUTTER LF 400 $22.00 $8,800.00 20 BITUMINOUS PAVEMENT PATCHING SY 140 $40.00 $5,600.00 21 BITUMINOUS WEAR COURSE FOR WALK TN 120 $125.00 $15,000.00 22 CONCRETE PEDESTRIAN CURB RAMP SF 800 $13.00 $10,400.00 23 TRUNCATED DOME PANEL SF 120 $50.00 $6,000.00 24 MODULAR BLOCK RETAINING WALL SF 650 $55.00 $35,750.00 25 TOPSOIL BORROW (LV) CY 150 $35.00 $5,250.00 26 SEED WITH BLANKET SY 1200 $2.50 $3,000.00 CONSTRUCTION SUBTOTAL $141,715.00 15% CONTINGENCY $21,257.25 CONSTRUCTION TOTAL $162,972.25 INDIRECT $50,000.00 ESTIMATED TOTAL PROJECT COST $212,972.25 Page 57 of 118 To: Eric Johnson, City Administrator From: Lee M. Mann, PE City of Oak Park Heights City Engineer File: 193805462 Date: December 10, 2021 Reference: 58th Street Walk— Preliminary Survey Eric, We have prepared a cost to conduct a preliminary design survey for the 58th Street Trail. We have indicated that if the City Council wishes to move forward with the project, we would provide a proposal for the design and bidding at the first meeting in January. However, if the Council wishes to move forward with the project, it would be advantageous to get going on the survey as soon as practical. The estimated cost to perform the survey is $1,960. This should be a conservative estimate which takes into account the possibility of snow cover when our crew gets out there. Snow cover, and how significant it is, will impact the time it takes to complete the work. Let me know if you have any questions. Stantec Consulting Services Inc. ,ee M. Mann, PE MN,WI,CA Principal 612-712-2085 Lee.Mann@stantec.com c. file Kellie Schlegel,Stantec Page 58 of 118 Oak Park Heights Request for Council Action Meeting Date December 14 2021 Agenda Item Title Resolution Approving the 2022 Budge Time Required I Minutes Agenda Placement New Business Originating Department/Requestor Finance-Betty Caruso Finance Director Requester's Signature _ Action Requested Approve Resolution for 2022 Budge Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). Attached is: • Resolution Approving the 2022 Budget • Summary of the 2022 Budgeted Revenues • Summary of the 2021 Budgeted Expenditure A full copy of the 2022 Budget is in your council mailbox at City Hall. The total General Fund Budget as Proposed is $6,499,473. 2022 General Fund Budgeted Expenditures increased by$382,291, or 6.25% compared to 2021. • $250,691 or 5.74% increase in Operations • $131,600 or 11.27 % increase in the Transfer of funds for capital projects • $ 0 change in the Debt portion of the levy Information regarding this and the changes in revenue mix are included in the 2022 Annual Budget. The proposed tax levy for the City is $6,034,373 for the General Levy and $0 for the Debt Levy. This Levy is a $343,361 increase as compared to 2021 levy a 6.03% increase. The levy increase is due to $382,291 increase in expenses and $38,930 increase in other 2022 revenues. I have prepared the resolutions for the 2022 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 2022 Budget for General Fund of$6,499,473 or as adjusted by council. Page 59 of 118 RESOLUTION 21-12- CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE 2022 BUDGET WHEREAS, the City Staff has prepared and submitted to the City Council the proposed budget for calendar year 2022, 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 2022 budget is hereby approved as presented by the City Finance Director in the total General Fund amount of 6,499,473 Passed by the City Council for the City of Oak Park Heights this 14th day of December 2021. Mary McComber, Mayor Attest: Eric A. 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Z F-- F w 0 O O V' N V, Z Z z F F LD Lu Q cr n In V) w H- H H N W ¢ O Z co w Z 0 b Z r Z K K Z > V N 0 0 0LL LU o � z 0 w V 0 u F Z o x o o o � o o zz z Q Z w H z z w w_ Lu p w J I W w w w w CJ ec O O V < Ln LU U Li w K z O °-'-' O a. W W W W OO ¢ Q z a H z w Z Z v¢i U a a 3 ��r O w Z Y w z Z Z ' r z L¢ � awJ ~ g � o � zNzo " 0z > » ma � Lona < < < Q G Z C7 J w U a W U 4 _ ¢ w U m a W CO w Q m a a a Q Ln H C n- F W WU' Oa a a 0 O Page 62 of 118 fir Oak Park Heights Request for Council Action Meeting Date_December 14, 2021 Agenda Item Title Resolution Approvinthe 2022 Tax Levy Time Required 1 Minutes Agenda Placement Neve Business Originating Department/Requestor_ Finance-Betty Caruso Finance Director Requester's Signature _ Action Requested Approve Resolution for 2022 Tax Levies Background/Justification (Please indicate any previous action, financial implications including budget information and recommendations). The Proposed 2022 Tax Levy is $6,034,373. This represents a 6.03% increase to the 2021 tax levy. The Tax Levy will be Certified as follows: The General Fund Tax Levy - $6,034,373 The General Obligation Debt Levies for 2022 are: • 2012 G O Capital Improvement Bonds - $0. ($475,000 Scheduled- paid for by General Fund Levy) 2014 G O Capital Improvement Bonds - $O ($42,000 Scheduled-paid for by General Fund Levy) (Scheduled Bonded Debt Levies are Cancelled and are levied for in the General Fund Tax Levy then transferred to the Debt Funds). Attached is a copy of the Resolution for the 2022 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 2022 Tax Levy 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 Resolution for the 2022 Tax Levy with the Corresponding Budget Resolution and include any changes as directed by council. Page 63 of 118 RESOLUTION 21-12- CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE 2022 GENERAL FUND LEVY, AND THE CANCELATION OF THE BONDED INDEBTEDNESS LEVY FOR 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 2022; 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 eights: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 2022 in the amount of $6,034,373. 27hat the City Administrator is also authorized and directed to cancel the scheduled tax levy of$475,000 for the General Obligation Capital Improvement Bonds of 2012; and $42,000 of the General Obligation Bonds of 2014. Passed by the City Council for the City of Oak Park Heights this 14th day of December, 2021. Mary McComber, Mayor Attest: Eric A. Johnson Administrator Page 64 of 118 e Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Title 2022 Water and Sewer Rate Study and review of Storm Water Rates Time Required 5 Minutes Agenda Placement New Business Originating Department/Requestor Finance-Betty Caruso,Finance Director Requester's Signature Action Requested 1)Approve Rate Study, 2)Approve Recommendations for No Rate Change for Water Utility and Storm Sewer Utility; 3)Approve Recommendation and adopt the Resolution for Rate Change Sewer Utility and; 4) fund the budgeted deficits with Unrestricted Utilijy Funds Background/Justification(Please indicate any previous action, financial implications including budget information and recommendations). See attached Memo and Rate Study and Resolution. Page 65 of 118 RESOLUTION NO. 21-12- CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING SEWER USAGE RATES WITHIN THE CITY OF OAK PARK HEIGHTS EFFECTIVE January 1, 2022 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, 2022, the City of Oak Park Heights shall establish a municipal sewer rate for all users as follows: a. A quarterly rate $5 . 40 per 1, 000 gallons of water used for the first 15, 000 gallons, with a per quarter minimum charge of $81. 00 . b. A rate of $5 . 87 per 1, 000 gallons of water used over 15, 000 gallons up to 50, 000 gallons . C. A rate of $6. 12 per 1, 000 gallons of water used over 50, 000 gallons Page 66 of 118 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 14th day of December 2021 . Mary McComber, Mayor ATTEST: Eric A. Johnson Administrator Page 67 of 118 12/1/2021 CITY OF OAK PARK HEIGHTS 2022 UTILITY RATE STUDY Utility Rates Water Sewer Storm Sewer Page 68 of 118 1 12/1/2021 Water Utility Budget rDDRdedto$1,000 11 2020 2021 2022 ACTUAL EST ACTUAL BUD F REVENUES CUSTOMER BILLINGS $ 819,000 $ 891,000 $ 844,000 OTHER REVENUES 35,000 13,000 5,000 TOTALREVENUES $ 854,000 $ 904,000 $ 849,000 EXPENDITURES OPERATIONS AND MAINTENANCE $ 356,000 $ 425,000 $ 458,000 RENEWAL AND REPLACEMENT 243,000 256,000 252,000 DEBT SERVICE 105,000 106,000 107,000 CAPITALOUTLAY 87,000 85,000 81,000 TOTAL EXPENSES $ 791,000 $ 872,000 $ 898,000 NET REVENUE $ 63,000 $ 32,000 $ (49,000) ry Water Usage WATER USAGE BILLED BY YEAR 195,= Average annual usage 180,000,000 gallons a ias,aao I z 2021 ACTUAL 191,000,000 gallons 175.000 2020 Usage is lower than normal 176,000,000 _m� gallons 2017 2018 2019 2020 2021 WATER BILLED BY 185,196 191,643 177,006 17GA81 191,370 YEAR Page 69 of 118 2 x / /221. Water Summary Last Increase in Rates was 2020 Budget Shortage for 2022 estimated at $49,000. Usage shifts due to COVID19 for 2020 and drought in 2021- what is normal? (180,000,000 used for study) Surplus Funds available from prior years. No rate increase for 2022 and review for 2023 Sewer Utility Budget roundedtc$1,0o 7512.0 2021 2022 ACTUAL EST ACTUAL BUDGET REVENUES CUSTOMER BILLINGS $ 950,000 $ 963,000 $ 963,000 OTHER REVENUES 39,000 10,000 10,000 TOTALREVENUES $ 989,000 $ 973,000 $ 973,000 EXPENDITURES OPERATIONS AND MAINTENANCE $ 241,000 $ 277,000 $ 310,000 MCES 460,00D 474,000 492,000 REN EWAL AN D REPLACEMENT 178,000 172,000 173,000 CAPITALOUTLAY 48,000 47,000 46,000 TOTAL EXPENSES $ 927,000 $ 970,000 $ 1,021,000 NET REVENUE $ 62,000 $ 3,000 $ (48,000) I Page 70 of 118 12/1/2021 Sewer Summary Revenues and Expenditures for 2021 less than expected but still estimating $3,000 surplus. Billing flows reduced due to COVIDI9, 150,000,000 gallons usually billed. 2020 and 2021 -142,000,000 gallons billed.(5% reduction) Revenues using current rate for 2022 insufficient to fund expenditures. Estimated loss of$48,000. Last rate change was 2018— sewer rate decrease. Increase rates by 3%- generates $28,000 of additional revenue. Fund remaining estimated loss $20,000 with surplus funds available from prior years. Review flows for pre-Covid flow rates 2022 / 2023 rate study Proposed Sewer Rate Compared to Current Rate CURRENT RATES 2021 EXAMPLES 4500,000 1501000 2000 MINIMUM SEWER LARGEUSER MID USER RESIDENTIAL RESIDENTIAL Tien /1000GAL MINIMUM 0-15,599 $ 78.50 $ 71150 $ 78.50 $ 7&50 16,000.54999 S 199.50 $ 199.50 $ 2&50 $ - 51,000.999,999 S 26A77.50S 595.OD $ $ $ 26,755.50 S 873.00 $ 107.00 $ 78.50 PROPOSED 2022 3%RATE INCREASES SEWER ilgg /1000GAL MINIMUM 0.15,999 $ 81.00 $ 6100 S 81.00 S 61.00 16,000-50,999 $ 205.45 $ 205.45 $ 29.35 $ - 51,0013o-999,999 27234.00 $ 612.00 $ - $ TOTAL $ 27,520A5 $ 69&45 $ 110.35 $ 81.00 %INC OVER 2021 RATE 2.86% 2.92% 3.13% S. Page 71 of 118 12/1/2021 Storm Sewer Utility Budget roundedm51,000 2 E9tActual BUDGET REVENUES CUSTOMER BILLINGS $ 97,000 $ 97,000 $ 97,000 OTHER REVENUES 4,000 11000 11000 TOTAL REVENUES $ 101,000 $ 98,000 $ 98,000 EXPENDITURES OPERATIONS AND MAINTENANCE $ 54,000 $ 61,000 $ 93,000 ADMIN FEE 5,000 6,000 6,000 CAPITALOUTLAY 5,000 6,000 7,000 TOTAL EXPENSES $ 64,000 $ 73,000 $ 106,000 NETREVENUE $ 37,000 $ 21000 $ (8,000) Storm Sewer Summary Estimated Loss for 2022 $8000— Sufficient funds from prior year to fund loss should it happen. °Last rate change was 2020 -No rate increase and review for 2021/2022 Page 72 of 118 IWATER AND SBAtR RATE STUDY 2022 i CITY OF OAK PARK HEIGHTS Page 73 of 118 TABLE, OF CONTENTS Table of Contents Introduction 1 Water User Charges 2 General 2 Water Usage Estimates 2 Customer Base 3 Consumption 6 Water department expenditures 7 Water rates 9 Summary 11 Sewer User Charges 12 General 12 System flow estimates 12 Sewer department expenditures 15 Sewer rates 17 Summary 18 Storm Sewer User Charges 20 General 20 CONCLUSIONS AND RECOMMENDATONS 22 Water 22 Sewer 22 Storm sewer 23 EXHIBIT A-Proposed Sewer Rates 24 EXHIBIT B-Proposed Sewer Rates• Customer Impacts 25 Page 74 of 118 Introduction The City of Oak Park Heights annually reviews the water and sewer rate schedule to assure the receipt of adequate funding for the operation of the utility systems. This updated report is a summary of the data for the purpose to determine the user rates required are adequate and equitably finance the proposed 2022 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. While the report focuses on the Water and Sewer Utilities, a review of the Storm Sewer Utility Charges is also included for 2022. Page 1 Page 75 of 118 WATER USER CHARGES Water User Charges GENER14L 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 water sales as well as 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. The City bills its customers based on the amount of water that is consumed during a calendar quarter. The amount consumed is billed on a tier system. The base rate for all customers is the same for all customers who use 15,000 gallons or less per quarter. The tiers rates increase with the usage. The customers are varied and a small percentage utilize the highest tier rate. The following analysis will explain in more detail each of these aspects of the billing system. 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. Billed consumption for the last 5 years is reflected in CHART A. The gallons billed over these 5 years fluctuate from 176,000,000 to 191,000,000. Variations from year to year can be due to individuals practicing conservation, climate conditions and possible malfunctioning water meters. In 2020 a reduction in use can partially be attributed to the COVID 19 Pandemic and the "Stay at Home" executive order from the governor. 2021 has increased usage which may be due to the summer drought conditions. A conservative estimate of 180,000,000 gallons is the amount that will be used for calculating the estimated 2021 rates. Page 2 Page 76 of 118 CHART A Yearly Tier Consumption Cor r 2017-2021 ,00 200,000 000 r 100,000 if r d�lf �II (.s uuii� I�I !r ` 105 di 2)17 553 :!. t 5, 1311 19iC22 b7,109 185,196 2018 56.034 29,7 BILLING TiERS m 2017 2020 m2021 Water usage in the four tiers(0-200)fluctuates minimally. The upper tier of usage>200 million gallons is affected by the changes in climate and causes the greatest fluctuation in usage from year to year. CUSTOMER BASE The city's customer base consists of residential, commercial/industrial, public institution and sprinkler-irrigation accounts. The total of the regular accounts is approximately 1310 and 40 for the irrigation accounts (which are generally billed June through September). For the purpose of the study 1300 customers are used. Page 3 Page 77 of 118 1156 Residential users are 88%of the water customers, 144 Commercial users are 11%while 7 Public Institutions are.5%,and 40 Irrigation (Sprinklers)accounts are.5%of the total customers billed. (Chart B) While residential users are 88%of the water customers,they consume 54%of the water usage billings. The other users Commercial, Public Institution and Sprinkler generate the remaining 46%of the water billings. (Chart C) CHART B-2021 Customer Type CHART C-2021 Consumption by Customer Type PUBLIC INSTITUTION SPRINKLER 0.5% PUBLIC INTI I U FION 12% COMMERCIAL 14% 11% SPRINKLER 0.5% 'l COMMERCIAL 20% RESIDENTIAL RESIDE:NTIAI. 88% 5410 RESIDENTIAL COMMERCIAL RESIDENTIAL ■COMMERCIAL PUBLIC INSTITUTION SPRINKLER ■ PUBLIC INSTITUTION a SPRINKLER 2021 BILLING DARTER TOTAL RESIDENTIAL COMMERCIAL PUBLIC INSTITUTION SPRINKLER Jan-March $ 161,297 $ 86,682 $ 41,554 $ 26,086 $ 6,975 April-June $ 236,346 $ 120,876 $ 50,762 $ 40,412 $ 24,296 July-Sept $ 321,165 $ 137,337 $ 50,756 $ 56,606 $ 76,466 Oct-Dec 2020 $ 172,462 $ 96,422 $ 42,526 $ 30,152 $ 3,362 $ 891,270 $ 441,316 $ 185,599 $ 153,256 $ 111,099 Percent of Total 100.00% 49.52% 20.82% 17.20% 12.47% 2021 CONSUMPTION QUARTER TOTAL RESIDENTIAL COMMERCIAL PUBUC INSTITUTION SPRINKLER Jan-March 33,710 19,291 8,593 4,590 1,236 Arpil-June 52,613 29,307 10,681 7,021 5,604 July-Sept 68,647 33,042 10,731 9,761 15,113 Oct-Dec 2020 36,400 22,204 8,909 5,287 0 191,370 103,844 38,914 26,659 21,953 Percent of Total 100.00% 54.26% 20.33% 13.93% 11.47% Page 4 Page 78 of 118 MI.......................�')) nnnnnnnnnnn 110�000....................... nn. 1156 Residential customers generate 50% of the water revenue while the remaining 151 customers generate the other 50% revenue. Residents tend to use less gallons than commercial or public institution customers. In a tiered rate structure, the vulnerability in the division of customers is that 151 customers or 12% (those other than residential)generate 50% of the water revenue and when a large user (Commercial/Public Institution/ Sprinkler) has a change in usage it can have a large impact on the revenues generated. In 2021 there was higher usage due to the drought, resulting in the Sprinkler billing increase of 72%or$46,500. Customer Type Consumption 2017-2021 120,000 100,000 x,532 80,000 o li a60,000 p a. 2 40,000 40,390 29,647 20,000 ° + 16 750 0 RESIDENTIAL COMMERCIAL PUBLIC SPRINKLER Years 2017 ■2018 M 2019 I$2020 2021 *Average The above chart reflects the change in usage by customer type comparing it to the average. Two observations for changes in 2020 and 2021 is the impact of the covid pandemic and the drought. During 2020,the pandemic caused the residential usage to increase as people were ordered to "Stay at Home". The pandemic also caused Commercial and Public usage to drop as schools were closed and virtual learning was practiced and many commercial businesses closed or worked at a reduced capacity. 2021 continued lower usage for Commercial as Covid and staff shortages continues to create challenges. Public usage remained lower as the schools Page 5 Page 79 of 118 were not open during the first part of 2021. However, Sprinkler and Residential increased in 2021 significantly due to the drought and yard watering. CONSUMPTION 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 quarterly billing periods. The current consumption tier levels per quarter are: • 0-15,000 gallons • 16,000-50,000 gallons • 51,000-99,000 gallons • 100,000-200,000 gallons • >200,000 gallons Projected consumptions are used to estimate revenues for funding the current year budget. The projected consumption for 2021 was 180,000,000 and for 2020 was 182,000,000. The actual consumption in 2021 is projected to be 191,000,000 and actual consumption in 2020 was 176,000,000. Estimating consumption to establish rates to generate revenue to fund the budget can result in fluctuations. The actual amount of loss or gain in revenue depends upon the consumption by rate tiers, especially the higher priced tiers. The following tables reflect Projected usage and revenues compared to Actual usage and revenues for 2021 and 2020. 2021 PROJeCTED ACTUAL PKII ACTUAL Rate Tier WATER USAGE WATER BILLING /1,000 gal usage REVENUE 0-15,999 55,000 56,410 $211,484 $215,770 16,000-50,999 26,000 31,489 $91,000 $111,300 51,000-99,999 15,000 16,749 $60,750 $68,200 10,000-200,999 19,000 19,579 $95,150 $98,000 201,000-999,999 65,000 67,143 $385,450 $398,000 Total 180,000 191,370 $843,834 $_891,270 Page 6 Page 80 of 118 2020 PROJECffil) ACTUAL PROIFCTFD ACTUAL WATER USAGE WATER BILLING Rate Tier /1,000 gal usage REVENUE 0-15,999 55,000 55,382 $215,691 $213,487 16,000-50,999 26,000 28,374 $91,000 $99,334 51,000-99,999 15,000 14,750 $60,750 $59,778 100,000-200,999 19,000 17,963 $9,5,150 $9Q, 201,000-999,999 67,000 60,012 $397,350 $355,871 Total 182,000 176,481 $854,941 $878,971 The tiered revenue amounts in the tables show the greatest amount of revenue is generated from the>200,000,000 gallons. This is due to two reasons,the rate charged for this tier is 118% greater than the lowest tier, and the usage in this tier is the highest. The revenue generated is approximated 45%and 43%of the total revenue for 2021 and 2020 respectively. Shifts of usage from this tier have the greatest impact on revenue generated. The 2020 loss of $40,970 expected revenue ($859,941 projected compared to the $818,513 estimated) is from the loss of revenues related to the > 200,000 tier. The expected 2021 gain of $42,700 ($843,834 projected compared to the $886,591 estimated) is due in part to the highest tier but also reflected in the 16,000-50,000 tier. This is attributable to the residential lawn/garden watering during the drought. Fluctuations will always occur, but budgeting based on usage in "normal' years will help stabilize the rates charged. The average quarterly water usage per customer account for 2021 is: • Residential 22,500 gallons (includes apartments, duplexes, condo, and individual) • Commercial 67,500 gallons • Public Institution 952,100 gallons • Sprinkler (seasonal) 137,000 gallons Because of the limited number of customers, such as 7 Public Institution customers and 40 Sprinkler customers, and the disparity from the average usage, changes incurred by this small group will have the largest financial impact to water revenue. WATER DEPARTMENT 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: Page 7 Page 81 of 118 a. Operation and maintenance b. Capital Outlay 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 to fund the future improvements and replacement of facilities and infrastructure. The following is a financial statement of the Water Fund from 2017 Actual through 2022 Budget. WATERFUND 2017 2018 2019 2020 2021 2021 2022 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTACTUAL BUDGET REVENUES CUSTOMER BILLINGS $ 773,617 $ 873,146 $ 799,397 $ 818,971 $ 843,900 $ 8911000 $ 844,000 OTHERRFVENUFS 33,494 26,564 59,859 34,844 5,000 12,845 5,000 TOTALREVENUES $ 807,111 $ 899,710 $ 859,256 $ 853,815 $ 848,900 $ 903,845 $ 849,000 EXPENSES PERSONNEL $ 180,730 $ 184,085 $ 202,563 $ 200,482 $ 221,750 $ 205,380 $ 228,700 CONTRACTUAL 138,583 119,329 118,504 121,656 (1) 182,320 193,850 196,600 MATERIAL AND SUPPLIES 26,419 25,407 22,614 34,010 35,000 26,000 32,500 CAPITAL OUTLAY 95,900 90,100 86,600 87,100 85,000 85,000 81,100 TRANSFER CAPITAL IMP 250,815 252,002 247,905 242,592 255,179 256,079 252,079 TRANSFER FOR DEBT 102,000 103,000 104,000 105,000 106,000 106,000 107,000 TOTAL EXPENSES $ 794,447 $ 773,923 $ 782,186 $ 790,840 $ 88.5,249 $ 872,309 $ 897,979 NETREVENUE $ 12,664 $ 125,787 $ 77,070 $ 62,975 $ (36,349) $ 31,536 $ (48,979) Based on estimated consumption of 180,000,000 gallons and 2021 water rates, 2022 reflects a revenue of $844,000 and Net Revenue loss of$(48,979). The projected loss is based on the 2022 Budgeted Expenses. (1)Contractual Expenses have increased since 2020. This is largely due to Utilities Expense for Well 1 that were previously allocated to the General Fund. A method of allocation based on Well 2's usage was implemented for allocating Well 1's cost to the Water Fund instead of the General Fund beginning in 2021. This raised the cost of utilities from $25,000 to $49,000, but reflects the cost of energy for pumping from 2 wells while prior years reflect only 1 well. The expenditure for Contractual fluctuates from year to year. This is primarily due to the repairs of water main breaks which is a result of the weather or the aging of the infrastructure. Five major Page 8 Page 82 of 118 USERILLAR breaks and watermain repairs occurred in 2021 which cost $54,000. This expense and the reallocation of utilities are reflective of the increase to 2021 actual expense as compared to 2020. Expenditures for capital improvement transfers is budgeted in 2022 based on the depreciation expense. 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 $107,000-$110,000/year for 2022-2025 (Total remaining of$434,000). 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 83 of 118 WATER 2022 BUDGETED EXPENDITURES PER UNIT COST (180,000 gallons) (1300Cust) 11,000 GALLONS /CUSTOMER Operation&Maintenance $ 457,800 $ 2.54 $ 352.15 Renewal &Replacement 252,079 $ 1.40 $ 193.91 Debt Service 107,000 $ 0.59 $ 82.31 Capital Outlay 81,100 $ 0.45 $ 62.38 Total $ 897,979 $ 4.99 $ 690.75 Calculated Minimum quarterly bill 15,000 gallons/ or based on per customer cost $ 74.83 $ 172.69 Actual minimum quarterly bill-volume base $ 40.67 $ 40.67 A per unit cost is$4.99/1,000 gallons($897,979/180,000,000 gallons)or$690.75 per customer. This would result in a minimum quarterly bill based on 15,000 gallons of usage of$74.83 or a minimum quarterly bill "per customer" of$172.69. Our current minimum bill based on 15,000 gallons is$40.67. The difference as to the cost per 1,000 gallons per the chart($74.83)and the actual amount charged for a minimum quarterly bill ($40.67) 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 $9.72 per water connection per year to the State of Minnesota for water connection service fees. The Current established water rates for are as follows: $2.43/quarter for State Water Connection Fee- Per Connection Minimum Charge $40.67/quarter for up to 15,000 gallons $3.50/1,000 gallons for usage from 16,000 to 50,000 gallons/qtr. $4.05/1,000 gallons for usage from 51,000 to 99,000 gallons/qtr. $5.01/1,000 gallons for usage from 99,000 to 200,000 gallons/qtr. $5.93/1,000 gallons for usage over 200,000 gallons/qtr. The 2022 Revenue is estimated in the present tier billing rates as indicated in the following chart based on the 3 year average usage in the individual tiers. Water Rates were last increased in 2020 by an average of 4%. Page 10 Page 84 of 118 2022 REVENUES FROM PRESENT RATES 2022 Rate Tier 1000 gal Rate Estimated Revenue 0-15,999 55,000 $40.67/acct $211,600 16,000-50,999 26,000 $3.50 $91,000 51,000-99,999 15,000 $4.05 $60,750 10,000-20,999 19,000 $5.01 $95,200 201,000-999,9999 65,000 $5.93 $385,450 Total 180,000 $844,000 For budget 2022, $844,000 is not sufficient to fund the 2022 estimated expenditures of $897,979. A projected shortfall of$48,979 is estimated. SUMMARY The review of the water fund reflects that the continued rate structure using a conservative usage will not generate enough revenue to fund the expenditures as budgeted for in 2022, resulting in a loss of$48,979. In 2021 as the budget and the expenses were reviewed it was projected to also have a loss of $36,349, however due to an increase in usage and billing for 2021, it is projected to end with a $31,500 gain. 2021 had high usage/billings due to an unusually dry summer season, while 2020 had low usage/billings due to the Covid-19 nandemic. These events are hard to predict or plan for, however both years saw a net gain in revenues over expenditures as reflected in the financial information on page 7. The Customer base continues to be volatile as so few customers provide 50% of the revenue needed to fund the Water expenses. Irrigation provides 12%of the revenues and can fluctuate causing losses and gains. A review of the Water Utility over a 5-year period reflects usage changes and is averaged to even out the fluctuations so rates need not be adjusted every year. The fluctuations will continue as there are so few users in the high-end tiers. Rates could possibly be adjusted forthe expected loss; however, history reflects funds available to use toward this loss should it occur. The Water Fund Unrestricted (available) Fund Balance is $1,199,200, or 133%of the 2022 Budgeted Expenditures . Page 11 Page 85 of 118 SEWER USER CHARGES 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 2022. 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 2022 annual billing amount, the calculation is based on flows from January 1, 2020 and ending December 31, 2020. The annual charge is a flat rate and billed to the city in equal monthly installments. The sewer flow of 175,260,000 gallons is the MCES measurement for the city during 2020 and is used for the calculation of the 2022 charges due the MCES. The total amount of water billed for 2020 was 163,500,000 (Excludes Sprinkler Billed). The difference can be attributed to unbilled water,such as broken meters,unmetered usage(use of winter water usage to calculate summer sewer bills) and if the city has any Inflow and Infiltration of storm/ground water. The total amount of water pumped for 2020 was 209,626,000. The MCES flows are 83%of the water pumped. The amounts of MCES Flow compared to Well Pump amounts are being Page 12 Page 86 of 118 1—Z . No OM ,1, compared periodically. The MCES has a lag of about 3-6 months in the data being provided which makes it harder to catch discrepancies on a timely basis. The MCES is STILL working to shorten the data lag. The MCES daily flow calculations will continue to be monitored by city staff and compared to the City's water pump reports. 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 2021 is 145,000,000 gallons. 2021 billed flow is estimated at 142,000,000. For 2022, 142,000,000 will be used for calculating the rates. Historical, 2012-2019, billing flows of 150,000,000-156,000,000 was consistent which generated a steady amount of revenues. However, 2020 billed flow was 141,000,000 and the current year of 142,000,000, this merits a new estimate of 142,000,000 gallons. 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 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 million gallons (mg) of sewer for each type of user for the 2021 year. 2021 Estimated Flow by Customer (mg) RESIDN>3 COMM/PUB-VARIABLE K RESIDENTIAL-FIXED Page 13 Page 87 of 118 w SEWER USER CHARGES 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 an approximate total of 1300 customers, 200 customers are billed actual water usage (commercial/residential >3units/public institution) and 1,100 billed the entire year on winter water usage (fixed residential). Due to the COVID19 pandemic there was a shift in sewer usage billed which was similar to the shift in water. This is reflected in the chart below in 2020 and 2021. This is reasonable as the sewer usage for commercial, who services were temporarily closed or reduced, is billed on water usage. Residents billed on winter usage is similar to prior years. The following graph reflects the change in usage. USAGE (FLOW)BILLED 120,000 100,000 fA z80,000 o - J J Q 60,000 Z O J J 40,000 20,000 — 2017 2018 2019 2020 2021 *RESIDN>3 COMM/PUB- 103,423 106,435 100,064 94,977 95,857 VARIABLE i RESIDENTIAL-FIXED 47,326 50,093 45,620 46,713 46,069 BILLED USAGE BY YEAR AND CUSTOMER TYPE ®RESIDN>3 COMM/PUB-VARIABLE ■RESIDENTIAL-FIXED Page 14 Page 88 of 118 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 2021 and 2022 along with actual expenditures for 2017- 2020 and estimated 2021 are in the following table. SEWERFUND 2017 2018 2019 2020 2021 2021 2022 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET ESTACTUAL BUDGET REVENUES CUSTOMER BILLINGS $ 972,017 $ 1,030,293 $ 974,950 $ 949,846 $ 973,750 $ 962,750 $ 963,000 REBATE $ (103,275) $ - OTHER REVENUES 45,398 20,548 49,047 38,802 10,000 10,000 10,000 TOTAL REVENUES $ 1,017,415 $ 947,566 $1,023,997 $ 988,648 $ 983,750 $ 972,750 $ 973,000 EXPENSES PERSONNEL $ 118,289 $ 121,371 $ 127,532 $ 132,010 $ 136,000 $ 136,000 $ 130,320 CONTRACTUAL 102,075 123,452 128,792 99,532 156,875 125,875 163,700 MCES 498,930 421,608 445,828 460,043 473,500 473,500 491,690 MATERIAL AND SUPPLIES 13,853 7,962 7,555 9,535 15,450 15,450 15,950 CAPITAL OUTLAY 49,725 51,725 47,777 47,625 46,525 46,525 45,650 TRANSFER CAPITAL IMP 171,303 173,061 183,085 178,122 171,750 171,750 173,700 TOTALEXPENSES $ 954,175 $ 899,179 $ 940,569 $ 926,867 $ 1,000,100 $ 969,100 $ 1,021,010 NETREVENUE $ 63,240 $ 48,387 $ 83,428 $ 61,781 $ (16,350) $ 3,650 $ (48,010) The 2018 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. Revenues have provided sufficient amounts to fund the expenditures for 2017 through projected 2021. The Budget for 2022 reflects a deficit of $48,010 or (5.0%) based on the proposed budget expenditures of$1,021,010. 2022 Revenues are based on billed flows of 142,000,000 gallons. 2021 Budget was based on 145,000,000 gallons billed. This reduction of flow billing results in Page 15 Page 89 of 118 SEWE a reduction of $11,000 in estimated revenue for 2021. 2022 Budgeted Expenditures are estimate to increase by$20,910 or 2.0%over the 2021 Budget The Metropolitan Council Environmental Services fee will be $491,690 for 2022 as compared to $473,500 for the year 2021. This represents a 3.8% increase in the MCES fee. The MCES charges since 2011 are in the following chart. MCES CHARGES BASED ON FLOWS AND BUDGET CHANGES OPH%of % MCES OPH TOTAL %INC IN MCES INCREASE Years TOTAL FLOW FLOWS FLOWS MCES BUDGET BUDGET ANNUALCHG DECREASE 2011 85,293.98 201.05 0.23571% 172,784,609 3.21% $407,277.81 4.40% 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% 2020 87,891.72 171.60 0.19524% 235,629,000 3.60% $460,042.61 3.19% 2021 96,967.05 191.00 019697% 240,342,000 2A0% $ 473,411.56 2.91% 2022 89,095.42 175.26 0.19671% 249,955,000 4.00% $491,687.60 3.86% The chart shows an increase in the MCES budget for 2022 of 4.0%, however the percentage increase in the annual MCES charge for the city for 2021 is 3.86%. This is due to the City's flow in relation to the total MCES flow percentage of.19671%. 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 90 of 118 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. 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 2022 BUDGETED EXPENDITURES PER UNIT COST (142,000 gallons) 13CO /1,000 GALLONS /CUSTOMER Operation &Maintenance $ 308,970 $ 2.18 $ 237.67 NXES 491,690 $ 3.46 $ 378,22 Capital Improvements 173,700 $ 1.22 $ 133.62 Capital Outlay 46,650 $ 0.33 $ 35.88 Total $ 1,021,010 $ 7.19 $ 785.39 Minimum quarterly bill 15,000gallons based on per unit cost $ 106.35 $ 196.35 Actual minimum quarterly bill-volume base $ 78.50 $ 78.50 A per unit cost is $7.19/1,000 gallons ($1,021,010/142,000,000 gallons) or $785.39 per customer ($1,021,010/1300 customers). This would result in a minimum quarterly bill based on 15,000 gallons of usage of $106.35 or a minimum bill "per customer" of $196.35. Our current minimum bill based on 15,000 gallons is$78.50 The current established quarterly sewer rates are as follows: Minimum Charge $78.50/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 17 Page 91 of 118 USER CHARGE!�-q The projected revenue for 2021 is estimated to be at $963,000, the budgeted amount was $973,750. The 2021 budget was based on 145,000 mg while the projected 2021 is 142,OOOmg. Even though this decrease of $37,100 in revenues for 2021, it is estimated that 2021 expenditures are$30,110 less than budget and therefore enough revenue will be generated to cover the 2020 expenditure budget, with an approximate $17,500 surplus. The following tables reflects the actual rates and estimated revenue for 2021 and 2022 based on the estimate of 142,000,000 gallons of flow and 2022 estimate utilizing the current rates with the projected billed flow of 142,000,000. 2021 and 2022 Estimated Actual Rate Tier 1000 gal Rate Estimated Revenue 0-151999 48,000 $78.50/acct $408,200 16,000-50,999 19,000 $5.70 $108,300 51,000-999,999 75.000 $5.95 W6,250 Total 142,000 $962,750 If rates for 2022 were to remain the same as 2021 there would be an approximate loss of $48,010 for the 2022 budget. SUMMARY Budgets are an estimate of income and expenses for a set period of time. The estimated Budget for 2022 is based on a reduction in billing flows and a 2% increase over 2021 Budgeted Expenses. Expenditures can vary based on large expenses planned for backups and maintenance that may be required to the infrastructure and equipment. The City has a sound policy on renewal and replacement of both, but occasionally there may be an unexpected major expense. The contractual budget which includes sewer cleaning,televising and pumping expenses, is expected to be $20,000 under budget for 2021, and is the reason that 2021 reduced revenues will still meet the expenses with an estimated $3,300 surplus. 2021 is not atypical year due to the COVID19 pandemic. Usages/Flows changed due to closures of businesses and schools, people working from home and reductions of hours of service for many commercial businesses. The economic impact is not expected to correct back to pre- pandemic any time soon. In order to meet the 2022 cost of operating the Sewer utility rates Page 18 Page 92 of 118 ui mm�o ,� m ��Im1ia.... t'.... nn. "Olf MMOb a should be adjusted. In order to cover the expected loss of$48,010, the present rates would need to be raised by 5%. Understanding there is uncertainty to the flow predictions and when/if the economy may return to pre-pandemic status, an overall 3% rate adjustment is proposed to alleviate a portion of the expected loss of$48,010. This would raise the revenues by$29,000 based on the 2021 flow billing. An analysis of 2022 flow billing and actual expenses, it may become necessary to raise the rates again in 2023. The last rate change was in 2019 when the minimum bill was reduced to$78.50 from the$81.00. The last increase was in 2018. The following charts reflect a 3% increase and a 5% increase. 202iRates-16/6 Increase Rate Tier stimated Revenue; 0-15,999 04 .. 16,000-50,999 $, $57 1 ,5 0 51,000-999,999 is-SOO $E,12 Total 142, A) 2022 Rates-5% Increase Rate Tier 1000 gal Rate Estimated Revenue 0-15,999 48,000 82.5 $429,000 16,000-50,999 19,000 $5.98 $113,620 511000-999,999 75,000 $6.25 $468,750 Total 142,000 $1,011,370 The Unrestricted Funds that Sewer has available are $1,449,418. This is 141% of the 2022 budget and can be utilized should 2022 incur a loss as expected. The fund balance is an accumulation of revenues $1,001,188 that have exceeded expenditures in the past, the unallocated balance of$331,435 from the MCES refund for overcharging the City and$116,795 of prior year SAC credits the City received from MCES for the St. Croix Cleaners. Page 19 Page 93 of 118 STORM SEWER USER CHARGES Storm Sewer User Charges GENERAL Storm Sewer Charges were established by the City in 1999. The purpose of all funds derived from the storm water drainage utility is to pay for all or part of the construction, reconstruction, repair, enlargement, improvement, regulatory response, maintenance, operation and use of the storm sewer utility as established by the City of Oak Park Heights. The following is 2017-2020 Actual Revenue and Expenditures, along with 2021 Budget, Estimate and 2022 Budget: STORM SEWER FUND 2017 2018 2019 2020 2021 2021 2022 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET Est Actual BUDGET REVENUES CUSTOMERBILLINGS $ 82,732 $ 83,907 $ 83,469 $ 97,766 $ 97,600 $ 97,600 $ 97,600 OTHER REVENUES 3,454 3,668 6,002 3,943 500 500 500 TOTALREVENUES $ 86,186 $ 87,575 $ 89,471 $ 101,709 $ 98,100 $ 98,100 $ 98,100 EXPENSES PERSONNEL $ 21,568 $ 21,934 $ 39,271 $ 26,075 $ 45,700 $ 24,500 $ 47,000 CONTRACTUAL 26,299 46,255 24,284 26,930 42,845 34,000 43,390 MATERIALAND SUPPLIES 1,754 1,360 2,357 993 2,050 2,350 2,350 ADM FEE 5,350 5,350 51500 5,500 6,350 6,350 6,350 CAPITALOUTLAY 13,850 36,600 36,600 5,100 5,750 5,925 7,450 TOTAL EXPENSES $ 68,821 $ 111,499 $ 108,012 $ 64,598 $ 102,695 $ 73,125 $ 106,540 NETREVENUE $ 17,365 $ (23,924) $ 18,541) $ 37,111 $ 4,595) $ 24,975 $ (8,440) The fees are established as: Residential $4.50 per quarter per unit(up to 4 units) Vacant Land $2.0 per quarter Developed Commercial, Industrial & High Density Residential $33.00 per acre per quarter Undeveloped Commercial, Industrial & High Density Residential $5.00 per acre per quarter Presently the fees generate$98,100 revenue,and the budgeted expenses for 2022 are$106540 causing a $8,440 deficit. The actual expenses for 2021 is estimated at$73,125, while revenue Page 20 Page 94 of 118 is estimated at $98,100, providing a surplus of$24,975.Actual expenses have historically been under budget. No changes are recommended as there are sufficient funds available to meet this deficit,should it occur. Unrestricted Balance for Storm Sewer is $230,630. Rates were last adjusted in 2020. Page 21 Page 95 of 118 CONCLUSIONS 1► RECOMMENDATONS CONCLUSIONS AND RECOMMENDATONS The Study reflects that there is a budgeted loss for 2022 Water Fund. 2020 and 2021 were unusual years, from the 2020 Covid pandemic and the 2021 severe drought. Usage billed had a significant impact on the revenues needed to fund the expenses. However, both years are expected to end with a surplus. 2022 budgeted loss of$48,979 is based on 180,000,000 gallons of water billed. This is an estimate subject to fluctuations as seen in the recent years. Because 2020 and 2021 were unusual years, it should not be used as a standard for developing rates for the Water Utility. However,it should be seen as a source for an analysis of the volatility of the tiered rate structure. Using an average of the last 5-7 years, ignoring the years with large variances has generated enough revenue to result in a gain for the water fund for each of the last 5 years. The average method should result in gains and losses that can be absorbed by the years. At this time, the estimated loss of$48,979 for 2022 should be funded with the prior 5 year accumulated gains of$310,000. The other consideration is that the Transfer for Debt of $107,000 will no longer need funding after 2025. This should be a consideration as each year is reviewed in the future. Recommend to address the budget shortfall: 1) Leave the 2022 Budget as is and fund the anticipated deficit of$48,000 with fund balance. The fund balance is in a strong position- the Unrestricted Fund Balance is $1,199,200. SEWER Sewer Rates should be increased to fund at least part of the expected deficit of$48,000. MCES continues to raise the expense charged to the City and the flow billings are not sufficient to provide for all the budgeted expenses. Understanding there is uncertainty to the flow predictions and when/if the economy may return to pre-pandemic status, an overall 3%rate adjustment is proposed to alleviate a portion of the expected loss of$48,010. This would raise the revenues by$28,000 based on the 2021 flow billing. An analysis of 2022 flow billing and actual expenses, it may become necessary to raise the rates again in 2023. Page 22 Page 96 of 118 Exhibit A and B are reflecting a 3%and a 5% increase and the impact on various customers. Recommend to address the budget shortfall: 1) Increase the Rates by 3% (Alternative 2) and fund the remainind anticipated deficit of $20,000 with the fund balance. Unrestricted Fund Balance is $1,449,418. 2022 flows should be reviewed for anticipated increases and how it may affect 2023. ( The $28,000 of estimated revenue that will increase with this rate increase should help to fund the increase in MCES expenses since 2020 of$31,700.) STORM SEWER No change in rates recommended. The budgeted loss of$8,440 is fundable with unallocated funds available of$230,630. Recommend to address the budget shortfall: 1) Leave the 2022 Budget as is and fund the deficit with fund balance. The fund balance is in a strong position, the Unrestricted Fund Balance is$230,630. Page 23 Page 97 of 118 CONCLUSIONS i - EXHIBIT A SEWER RATE ALTERNATIVES CURRENT RATES 2021 SEWER /1000 Estimated Tiers /1000GAL MINIMUM Gallons Revenue 0-15,999 $ 5.23 $ 78.50 48,000 $ 408,200 16,000-K999 $ 5.70 19,000 $ 108,300 51,000-999,999 $ 5.95 75,000 $ 446,250 142,000 $ 962,750 PROPOSED 2022 ***Fully Fund $48,000 shortage ALTERNATIVE#1-5%INC IN RATE BY TIER Provides$48,000 in additional revenue SEWER /1000 Estimated Tiers /1000GAL MINIMUM Gallons Revenue 0-15,999 5.5L, 82.50 48,000 $ 429,000 16,000-50,999 $ 5.98 19,000 $ 113,620 51,000-999,999 $ 6,?",' 75,000. $ 468,750 TOTAL 142,000 $ 1,011,370 %INC OVER 2021 RATE 5.05% PROPOSED 2022 ***Parially Fund $48,000 shortage ALTERNATIVE#2-3%INC IN RATE BY TIER Provides$29,000 additional revenue SEWER /1000 Estimated Tiers /1000 GAL MINIMUM Gallons Revenue 0-15,999 $ 5.40 $ E 48,000 $ 421,200 16,000-50,999 $ 5.87 19,000 $ 111,530 51,000-999,999 $ 6.12 75,000 $ 459,000 TOTAL 142,000 $ 991,730 %INC OVER 2021 RATE 3.01% Page 24 Page 98 of 118 CONCLUSIONS A EXHIBIT B SEWER RATE ALTERNATIVES- EXAMPLES OF CUSTOMER BILLS CURRENT RATES 2021 EXAMPLES 4,500,000 150,000 20,000 MINIMUM SEWER LARGE USER MID USER RESIDENTIAL RESIDENTIAL Tiers /1000GAL MINIMUM 0-15,999 $ 5.23 $ 78.50 $ 78.50 $ 78.50 $ 78.50 $ 78.50 16,000-50,999 $ 5.70 $ 199.50 $ 199.50 $ 28.50 $ - 51,000-999,999 $ 5.95 $ 26,477.50 595.00 $ - $ - $ 26,755.50 $ 873.00 $ 107.00 $ 78.50 PROPOSED 2022 EXAMPLES ALTERNATIVE#1-5%RATE INCREASE 4,500,000 150,000 20,000 MINIMUM SEWER LARGE USER MID USER RESIDENTIAL RESIDENTIAL Tiers /1000GAL MINIMUM 0-15,999 $ 5.50 $ 82.50 $ 82.50 $ 82.50 $ 82.50 $ 82.50 16,000-50,999 $ 5.98 $ 209.30 $ 209.30 $ 29.90 $ - 51,000-999,999 $ 6.25 S 27,812.50 625.00 S- $ - TOTAL $ 28,104.30 $ 916.80 $ 112.40 $ 82.50 %INC OVER 2021 RATE 5.04% 5.02% 5.05% 5.10% ALTERNATIVE#2-3%RATE INCREASES SEWER Tiers /1000GAL MINIMUM 0-15,999 $ 5.40 $ 81.00 $ 81.00 $ 81.00 $ 81.00 $ 81.00 16,000-50,999 $ 5.87 $ 205.45 $ 205.45 $ 29.35 $ - 51,000-999,999 $ 6.12 $ 27,234.00 $ 612.00 $ - $ - TOTAL $ 27,520.45 $ 898.45 $ 110.35 $ 81.00 %INC OVER 2021 RATE 2.86% 2.92% 3.13% 3.18% Page, Page 99 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 100 of 118 .w Oak Park Heights Request for Council Action Meeting Date December 14, 2021 Agenda Item Approve Changes to City Ordinance 102 —Master Fee Schedule Time Req. 5 Agenda Placement New Business Originating Department/Requestor Administration/Jennifer Pinski ' Re uesters Si nature Requester's g �\y - Action Requested Consider and Adopt Amended CC 102 Master Fee Schedule Background/Justification(Please indicate any previous action has been taken or if other public bodies have been 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, March 24, 2021. Attached is a summary of proposed Master Fee Schedule amendments. Changes being proposed include: 1. Sewer Usage Quarterly Rates as approved at the December 14, 2021 City Council meeting. 2. Area Connection Charges as approved at the December 14, 2021 City Council meeting. 3. Removal of language in the Plumbing and Mechanical sections of the fee schedule that was repealed at the State level and is no longer applicable. I recommend that the summary of fee amendments to CC 102 Master Fee Schedule be adopted as proposed, with any amendments made by the City Council. Page 101 of 118 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY,MINNESOTA ORDINANCE NO.2021-102-05 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: Schedule of Fee Amendments: Area Connection Charges: For Undeveloped/Unconnected Land(Utility Area Charge) Land Use: Commercial/Industrial& Retail/Business Centers: Sanitary Sewer From$2,852 per acre to$3,092 per acre Water Main From$14,819 per acre to $16,064 per acre Storm Sewer From$2,312 per acre to $2,506 per acre Storm Sewer-TSMP Area From$10,778 per acre to $11,683 per acre Land Use: Low Density Residential: Sanitary Sewer From $2,718 per acre to $2,946 per acre Water Main From $14,135 per acre to $15,322 per acre Storm Sewer From $1,272 per acre to$1,379 per acre Storm Sewer-TSMP Area From $9;740 per acre to $10,558 per acre Land Use: Medium Density Residential: Sanitary Sewer From$3,672 per acre to $3,932 per acre Water Main From$18,847 per acre to $20,430 per acre Storm Sewer From$1,846 per acre to $2,001 per acre Storm Sewer-TSMP Area From$10,311 per acre to $11,177 per acre Land Use: High Density Residential: Sanitary Sewer From$6,347 per acre to $6,880 per acre Water Main From$32,987 per acre to $35,758 per acre Storm Sewer From $2,312 per acre to $2,506 per acre Storm Sewer-TSMP Area From $10,778 per acre to $11,683 per acre Sewer Usage Rates(Quarterly) *Residential rates determined by amount of water used in the March quarter of each year. *Commercial, Industrial, Institutional& High.Density Residential rates are based upon actual usage each quarter. Up to 15,000 gallons From $78.50 to $81.00 Page 102 of 118 + Each 1,000 gallons above 15,000 gallons From $5.70 to $5.$7 up to 50,000 gallons Each 1,000 gallons above 50,000 gallons From $595 to $6.12 Section 2. Removal of Lang_uage. That Chapter 102 of the Code of Ordinances of the City of Oak Park Heights is hereby amended to remove the following language in both the Plumbing and HeatingNentilation/Colling Permits (Mechanical) sections: Residential: Minor Improvement * * Eg. pre-wired dishwasher, water softener, and minor repair meeting the following: • Does not modify gas or electrical service; 5%of job valuation ($15.00 min.) + MIS • Does not exceed total labor cost of State Surcharge $500; and • Is improved, installed or replaced by the homeowner or a licensed contractor Section 3. Effective Date. This Ordinance shall be in full farce and effect January 1, 2022, 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 14a`day of December, 2021. CITY OF OAK PARK HEIGHTS Mary McComber, Mayor Attest: Eric A. Johnson, City Administrator Page 103 of 118 THIS PAGE INTENTIONALLY LEFT BLANK Page 104 of 118 Oak Park Heights Request for Council Action Meeting Date December 14th, 2021 Time Required: 5 Minutes Agenda Item Title: Council Appointments - 2022 Agenda Placement New Business Originating Department/Requestor: Mayor McComber Requester's Signature Action Requested: See Below Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Attached is the listed Appointments for 2021; I would like to discuss the Council's requests for 2022 and for possible approval - all open for discussion. Some immediate thoughts are, although mostly similar to 2021 are as follows: Deputy Mayor- Chuck Dougherty Civil Defense - Steve Hansen Park Commission Liaison - Chuck Dougherty (This was the only request I received) Browns Creek Watershed - Chuck LeRoux (This is a County Appointment— Oust a FYI) Coalition of Utility Cities - Mary McComber Alternate - Chuck Dougherty 2nd Alternate - Jennifer Pinski Data Compliance - Betty Caruso JAZB - Mary McComber and Mike Liljegren Alternate - Jim Kremer Page 105 of 118 Page lOOofll8 Oak Park Heights Request for Council Action Meeting Date December 14th, 2021 Time Required: 5 Minutes Agenda Item Title: Redistribution of 2021 ARPA Funds Agenda Placement New Business Originating Department/Requestor: Eric Johnson, City Administrator Requester's Signature Action Requested: See Below Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): The City was recently informed by the State Office of Management and Budget(MMB)that cities under 50,000 population are receiving an additional deposit of American Rescue Plan Act(ABPA)Funds, directly deposited into cities' bank accounts. These funds represent the share of unclaimed ARPA funds available to non-entitlement units of government(government entities below 50,000 population). Guidelines and requirements for redistributed funds are the same as for the first distribution. The second distribution of funds will be made in 2022. While City Staff believes no further action is necessary for such distribution,the City may adopt a resolution accepting such additional funds and committing to their use consistent with established ARPA rules. Staff would also forward this to the State. The City has already received its first distribution - $8,668.24. NOTE: The City secured$525,315 in ARPA funds June, 2021 and allocated such funds in City Resolution 21-06-24—attached. Page 107 of 118 RESOLUTION 21-12-45 A RESOLUTION BY THE CITY COUNCIL FOR THE CITY OF OAK PARK HEIGHTS TO ACCEPT THE REDISTRIBUTION OF UNREQUESTED CORONAVIRUS LOCAL FISCAL RECOVERY FUNDESTABLISHED UNDER THE AMERICAN RESCUE PLAN ACT WHEREAS, Congress adopted the American Rescue Plan Act in March 2021 ("ARPA")which included $65 billion in recovery funds for cities across the country. WHEREAS,ARPA funds are intended to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in their communities,residents, and businesses. WHEREAS,The Fiscal Recovery Funds provides for$19.53 billion in payments to be made to States and territories which will distribute the funds to non-entitlement units of local government(NEUs). WHEREAS,NEUs generally have populations below 50,000. WHEREAS,The ARPA requires that States and territories allocate funding to NEUs in an amount that bears the same proportion as the population of the NEU bears to the total population of all NEUs in the State or territory. WHEREAS, after the deadline of October 11,2021,passed for NEUs to request ARPA funds,nearly$12 million of the$377 million available to Minnesota's NEUs remained unrequested. WHEREAS, as allowed by the U.S. Treasury,the State of Minnesota has redistributed these remaining funds amongst eligible local governments who requested ARPA funds. WHEREAS,the redistribution amount is approximately$3.47 per capita,capped at 75%of the most recent budget adopted as of January 27,2020. WHEREAS, an initial distribution of$8,668.24 has been allocated to the City of Oak Park Heights("City") pursuant to the ARPA(Redistribution)and which may approach a total amount of approximately$17,000.00 when a second distribution is received in 2022. WHEREAS,the Redistribution will be distributed in two disbursements with half received in 2021 and the second half in 2022. WHEREAS,the United States Department of Treasury has adopted guidance regarding the use of ARPA funds. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Oak Park Heights,MINNESOTA AS FOLLOWS: 1. The City accepts the Redistribution of coronavirus local fiscal recovery fund established under the ARPA to be used in a manner consistent with guidance adopted by the United State Department of Treasury. 2. The City Administrator and Mayor are authorized to take actions to secure the Redistribution for the City,if necessary. Adopted by the City Council of the City of Oak Park Heights this 14t1 day of December,2021 Mayor Mary McComber Attested: City Clerk Page 108 of 118 RESOLUTION^14 A RESOLUTION TO ACCEPT THE CORONAVIRUS LOCAL FISCAL RECOVERY FUND ESTABLISHED UNDER T14E AMERICAN RESCUE PLAN ACT WHEREAS, since the first case of coronavirus disease 2019(COVID-19)was discovered in the United States in January 2020,the disease has infected over 32 million and killed over 575,000 Americans (`Pandemic''). The disease has impacted every part of life: as social distancing became a necessity, businesses closed,schools transitioned to remote education,travel was sharply reduced, and millions of Americans lost their jobs; WHEREAS,as a result of the Pandemic cities have been called on to respond to the needs of their communities through the prevention,treatment,and vaccination of COVID-19. WHEREAS,city revenues,businesses and nonprofits in the city have faced economic impacts due to the Pandemic. WHEREAS,Congress adopted the American Rescue Plan Act in March 2021 ("ARPA")which included $65 billion in recovery funds for cities across the country. WHEREAS,ARPA funds are intended to provide support to state, local, and tribal governments in responding to the impact of COVID49 and in their efforts to contain COVID-19 in their communities, residents, and businesses. WHEREAS, an estimated $525,315 has been allocated to the City of Oak Park Heights("City")pursuant to the ARPA ("Allocation''). WHEREAS,the United States Department of Treasury has adopted guidance regarding the use of ARPA funds. WHEREAS,the City,in response to the Pandemic,has had expenditures and anticipates future expenditures consistent with the Department of Treasury's ARPA guidance. WHEREAS,the State of Minnesota will distribute ARPA funds to the City because its population is less than 50,000. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS MINNESOTA THAT IT SHALL UNDERTAKE FOLLOWING 1. The City intends to collect its share of ARPA funds from the State of Minnesota to use in a manner consistent with the Department of Treasury's guidance; and, 2. City Staff are hereby authorized to take reasonable actions necessary to receive the City's share of ARPA funds from the State of Minnesota for expenses incurred because of the Pandemic; and, 3. The City Council does outline the following targeted uses for such ARPA funds: a. Up to $15,000 for retroactive pay for essential workers who have not already received additional compensation for their service during the pandemic. This is permitted under US TREASURY GUIDANCE as: Premium Pay-Retroactive pay for the essential workers who performed essential work during the initial COVIDI9 pandemic,at heightened risk due to in-person interaction and handling of items that were handled by others. Page 109 of 118 b. $10,000 for allocation($5,000 each)to the Greater Stillwater Chamber of Commerce and the Oak Park Heights - Stillwater Convention and Visitors Bureau which shall utilize such funds to benefit all local business during the continuing recovery and ensure their operations remain consistent with COVID-19 protocols. This is permitted under US TREASURY GUIDANCE, as: Public Health and Economic Impacts—Assistance in Tourism and promotion of local business due to hardships and consequences of COVIDI9 pandemic c. $12,000 for allocation ($4,000 each)to the Youth Service Bureau and Community Thread and Valley Outreach which shall utilize funds to benefit the community as a whole and ensure their operations remain consistent �N ith COVID-19 protocols. This is permitted under US TREASURY GUIDANCE as: Public Health and Economic Impacts—Assistance in Non-profits with declines in revenues and assistance with ongoing operating costs. d. $10,000 for City computer/website remote service enhancements This is permitted under US TREASURY GUIDANCE as: Investment in Infrastructure-Broadband: Providing access to city programs remotely with additional interactive user capabilities. e. $479,315 (OR REMAINDER)to be allocated for investments in City Water Utility Improvements—specifically. Replacement of City Water Utility Customer Meters. This is permitted under US TREASURY GUIDANCE as: Investment in Infrastructure—Water: Assisting in production of high-quality infrastructure to advert disruptive services and promote efficiency 4. City staff are requested to make recommendations to the City Council for other future expenditures or reasonable amendments should other eligible projects become apparent and necessary and that may be reimbursed with ABPA funds. Adopted by the City Council of the City of Oak Park Heights Minnesota this 22nd day of June,2021. �U M or ry eComber tteste f ity A inistrator t Page 110 of 118 0 Oak Park Heights Request for Council Action Meeting Date: Tuesday December 14, 2021 Agenda Item : Sanitary Sewer Pipe Segment Linin Time Req. 3 Minutes Agenda Placement:New business Originating Department/Requestor: d Ke ev,Public Works Director Requester's Signature Action Requested: A rove/Ac t Stantec's Pro o to design and bid sanitga sewer linin project Background/Justification(Please indicate any previous action has been taken or if other public bodies have been advised). See attached memo. Page 111 of 118 i Is City of Oak Park Heights 14168 Oak Park Blvd Me Oak Park Heights,MN 55082•Phone(651)439-4439•Fax 439-0574 Memorandum To: Eric Johnson,Administrator Cc: Mayor and Council VL From: Andrew Kegley, Public Works Director Date: 12/14/2021 Re: Sanitary Sewer Lining Sanitary sewer cleaning and televising records indicate 1947 linear feet of sewer pipe is damaged and needs to be repaired. The proper repair for the types of cracks, breaks and root intrusion at joints shown on the sewer televising reports is pipe lining. It is expected that the pump lining portion of the project might cost an ESTIMATED $45 per linear foot or roughly$90,000 before engineering and soft costs are calculated. Stantec provided a proposal to design and bid the project for a not to exceed $21,800 and will provide construction service costs when the scope of work is more clear.The project will be funded from the City's renewal and replacement fund which has a balance of$2,328,000. t am requesting Council accept Stantec's proposal to design and bid the project for$21,800. Page 112 of 118 as E N d M N t0 0 m eh f� ry p -%p W N N ` 0 Lq 00c 0 C t to Ln3 C C N C' m m C7 7 7 7 � Y `I IL N C C W W- C7 C C VG N p - C C `p `p + W �t O O O -0 -0 C m m m m m m � 4+ 41 41 O O W i O O. = = sF F- 0 O Q to N (C0 M N O N ei N M N M L E w 00 w 00 00 00 W 0 L Q- OL OL CL CL d CL d C u u u u u u u '>-J u x ami 0 N n In 00 N O 00 O O O O to o q' M tp rl ri ei l0 a--I a--I ei (A a-1 a-I a-I a-I rl ei N 3 0 0 x E t0 0 <n m M an N O .-i N O O ei N N to to H Q M Z Z N Z Z Z 7 10 Q X X X L L fQj L2 r_ O O O@ Lf0 Q' YH O + �n O ^ N to M to OO ai 1, ri r� x J -0i Z W U3 tD 'i I Lfl ei N 00 O 00 t0 pNp WN 0 Q. N go Go 000 0000 Tq 4m OA 01 'a Page 113 of 118 Stantec Consuh...n .— Stantec 733 Marquette Avenue Suite 1000,Minneapolis MN 55402-2309 December 9, 2021 File: 193880119 Attention: Mr. Eric Johnson,City Administrator City of Oak Park Heights 14168 Oak Park Boulevard Oak Park Heights, MN 55082 Reference: Proposal for Engineering Services—2022 Sanitary Sewer Lining Project Dear Eric, This letter constitutes the Scope of Services for Professional Services between the City of Oak Park Heights and Stantec Consulting Services Inc. for providing design and bidding services for the 2022 Sanitary Sewer Lining project. The improvements generally include repair and rehabilitation of several existing sanitary sewer pipe segments through the City via cured-in-place-pipe(CIPP) lining, a trenchless sewer pipe repair method. The total length of pipe to be CIPP lined as part of this project is approximately 1,950 linear feet. The pipe segments are identified on the attached project map and vary in diameter from 8"to 12". The total estimated hourly not-to-exceed (without prior authorization)fee for the design and bidding is $21,800, including expenses. A proposal for construction services will be forwarded for the City's review toward the end of the design phase. Task descriptions and a fee summary are provided below. Task 1: Design Services The design services for the project include the following: • Project Kick-Off. Meeting with City staff to confirm elements to be included in the project. • Pipe Investigation: Stantec staff will review all televising reports and videos provided by the City to identify pipe size, length, as well as cracks, areas of infiltration, and other issues. • Design: Prepare construction plans and an opinion of probable cost. Present and discuss plans and specifications with City staff at progress meeting to be held at 90% plan completion. • Construction documents: Preparation of construction plan set and project specifications. • Mileage and printing. Task 2: Bidding Services The bidding services for the project include the following: • Package Bid Documents and Issue Ad for Bids • Respond to contractor questions and issue addenda as needed • Attend bid opening and review/compile a tabulation of all bids received Page 114 of 118 December 9,2021 Mr.Eric Johnson,City Administrator Page 2 of 3 Reference: Proposal for Engineering Services-2022 Sanitary Sewer Lining Project • Prepare award letter/recommend award of project The fees for the tasks outlined above are as follows: Task 1 —Design Services $17,300 Task 2—Bidding Services $4,500 Total Estimated Fee $21,800 Proposed Schedule A potential schedule for this project is as follows: December 14, 2022 Authorization to prepare Plans and Specifications February 8, 2022 Approve plans and specifications/Authorize Bidding March 3, 2022 Receive Bids March 8, 2022 Council Reviews Bids, Considers Award Summer/Fall 2022 Begin Construction December 2022 Substantial/Final Completion This letter and Scope of Services described above represent the understanding between the City and Stantec in respect to the Project and may only be modified in writing signed by both of us and is subject to the current Master Services Agreement between the City and Stantec. If this letter satisfactorily sets forth conditions of our Agreement, please sign in the space below and return one copy to our office. CITY OF OAK PARK HEIGHTS By Print Name and Title Date Page 115 of 118 December 9,2021 Mr.Eric Johnson,City Administrator Page 3 of 3 Reference: Proposal for Engineering Services-2022 Sanitary Sewer Lining Project If you have any questions, need additional information, or wish to discuss this matter in greater detail, please contact us. Thank you for the opportunity to provide these services. Regards, I,tantec Consulting Services Inc. MN,WI, CA .Schlegei, r MN City Engineer Senior Associate Phone: 612-712-2085 Phone: 612-712-2125 Lee.mann@stantec.com Kellie.schlegel@stantec.com attachment: Project Area Map c. file Andrew Kegley, Public Works Director Page 116 of 118 { Y - 00 ri „ .. . ,.... ... L - :. �.. '. a' e f t 4 , 7 � „ • F d �J o w V " jo y jt •l !t � � a4° ✓,. ,m �-...�.. ,, i�� ,,. a � s 3. 1d,. 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