HomeMy WebLinkAbout01-14-2008El
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MINUTES
MAPLEWOOD CITY COUNCIL
7:00 p.m., Monday, January 14, 2008
Council Chambers, City Hall
Meeting No. 1-08
CALL TO ORDER
A meeting of the City Council was held in the City Hall Council Chambers and was called
to order at 7:00 p.m. by Mayor Longrie.
PLEDGE OF ALLEGIANCE
ROLL CALL
Diana Longrie, Mayor Present
Erik Hjelle, Councilmember Present
Kathleen Juenemann, Councilmember Present
John Nephew, Councilmember Present
Will Rossbach, Councilmember Present
D. APPROVAL OF AGENDA
Councilmember Hjelle requested to remove agenda items K8 and L4 due to legal issues.
Councilmember Hjelle requested the addition of M1. Council Presentations, a discussion
regarding Joe Plant and City Manager, Greg Copeland.
Councilmember Nephew requested to add M2. Council Presentations, Fire at Wipers
Recycling, M3. Orientation and M4. Council Staff Retreat. He also suggested item L5.
New Business be moved ahead of Public Hearings due to the attention of the subject
matter.
Councilmember Rossbach requested the addition of M5. Council Presentations, South
Leg meeting and M6. Ramsey County League of Government.
Councilmember Juenemann moved to approve the agenda as amended.
Mayor Longrie made a friendly amendment L5. New Business should come after the
public hearing since that is the timeframe the city advertises the public hearing to be
heard.
Councilmembers Nephew and Juenemann accepted the Friendly amendment.
Seconded by Councilmember Nephew
The motion passed.
Ayes — Mayor Longrie,
Councilmembers Juenemann
Nephew & Rossbach
Na — Councilmember Hjelle
E.
APPROVAL OF MINUTES
Mayor Longrie had a correction to the December 10, 2007, city council meeting minutes
on page 24 under the Adoption of 2008 City Budget. The motion should read as follows:
Councilmember Rossbach moved to approve the Adoption of the 2008 City Budget.
However, the council is sending the 2008 City Budget back to city staff to be reviewed
again to make reductions across the board as staff finds appropriate in order to create
enough funding in the 2008 City Budget that does not remove any existing
Maplewood personnel from employment in the City of Maplewood including to
retaining the two Planning positions and the Business License Specialist position that
was proposed to be removed.
Councilmember Rossbach moved to approve the December 10, 2007, city council
meeting minutes as amended.
Seconded by Mayor Longrie.
The motion passed.
Ayes — Mayor Longrie,
Councilmembers Hjelle,
Juenemann, & Rossbach
Abstain — Councilmember Nephew
Councilmember Rossbach moved to approve the December 27, 2007, Special City
Council Meeting minutes.
Seconded by Councilmember Juenemann
The motion passed.
Ayes — Mayor Longrie,
Councilmembers Hjelle,
Juenemann, & Rossbach
Abstain — Councilmember Nephew
Councilmember Rossbach recommended moving H. Appointments/Presentations
items H1 and H2 ahead of the Public Hearing because it wasn't time to begin the
public hearing vet.
Seconded by Councilmember Juenemann. Ayes — All
The motion passed.
APPOINTMENTS/PRESENTATIONS (approved to be heard out of order)
1. Community Outreach Commission Update. Karen Guilfoile, Citizen
Services Manager. City Clerk, Citizen Services Manager presented the report
regarding the Community Outreach Commission and upcoming information for
new Businesses and Residents in Maplewood.
January 14, 2008 City Council Minutes
2. Two lifesaving awards
a. Fire Chief, Steve Lukin gave the report and presented lifesaving awards to
James Behrens and Maraaret Behrens for their heroic efforts in 2006.
F. PUBLIC HEARINGS
1. Priory Public Improvements, City Project 07-24
a. Public Hearing 7:15 p.m. or later
b. Resolution Ordering Improvement After Public Hearing (requires 4 votes)
C. Public Works Director, Chuck AN presented the report.
d. Mayor Longrie opened the Public Hearing at 7:30 p.m.
1. Ron Cockriel, 943 Century Avenue, Maplewood.
2. Kris Eiden, Member of the Board of Trustees for Hill -Murray
School.
3. Ann Fosberg, 2516 Idaho Avenue East, Maplewood.
Mayor Longrie closed the Public Hearing.
Councilmember Rossbach moved to approve the resolution ordering the improvement of
the Priory Public Improvements, City Project 07-24. (addition to the resolution is in bold
and underlined.)
RESOLUTION 08-01-001
ORDERING IMPROVEMENT AFTER PUBLIC HEARING
WHEREAS, a resolution of the city council adopted the 10th day of December,
2007, fixed a date for a council hearing on the proposed street improvements for the
Priory Public Improvements, City Project 07-24.
AND WHEREAS, ten days mailed notice and two weeks published notice of the
hearing was given, and the hearing was duly held on January 14th, 2008, and the
council has heard all persons desiring to be heard on the matter and has fully
considered the same;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
MAPLEWOOD, MINNESOTA, as follows:
1. That it is necessary, cost-effective and feasible, as detailed in the
feasibility report, that the City of Maplewood make improvements to Priory Public
Improvements, City Project 07-24.
2. Such improvement is hereby ordered as proposed in the council
resolution adopted the 14th day of January 2008.
3. The city's consultant, Short Elliott Hendrickson Inc., is the designated
engineer for this improvement and is hereby directed to prepare final plans and
specifications for the making of said improvement.
4. The city will retain the right to assess Hill -Murray School in the
future for the cost of the trail.
January 14, 2008 City Council Minutes
5. The finance director is hereby authorized to make the financial transfers
necessary to implement the financing plan for the project. A project budget of
$1,212,089 shall be established. The proposed financing plan is as follows:
Special Assessments: $ 1,144,487
City—GO Improvement Bonds: $ 67,602
Mayor Longrie made a Friendly amendment that the city should retain the right to assess
Hill -Murray School in the future for the cost of the trail.
The Friendly amendment was accepted by both Councilmember Rossbach and Nephew.
Seconded by Councilmember Nephew. Ayes - All
The motion passed.
(The council agreed to move item L. 5. ahead due to the attention of the subject
matter.)
L. NEW BUSINESS
5. Consideration of process options available for replacement of a City
Manager — Councilmember Rossbach — No Report.
Councilmember Rossbach spoke regarding how to proceed with replacing the current
City Manager, Greg Copeland. Councilmember Rossbach said a possible course of
action would be to consider putting Mr. Copeland on paid administrative leave. This
would give the council the opportunity to seek outside guidance which the council needs.
Until the council gets the information and knows all the options that are available to the
council, it would be improper and too soon for the council to make a motion to terminate
Mr. Copeland. The prudent approach is for the council to have the opportunity to sit
down and discuss the information. Councilmember Rossbach said he was open to
hearing what the other councilmembers had to say.
Councilmember Nephew agreed with this approach. He said when he campaigned for
office he campaigned very explicitly for change in city hall and felt he had to live up to
his first campaign promise to do something about this. Councilmember Nephew said he
wanted to make sure the council does things in a careful manner, particularly with
respect to the legal complications. He said he has done some checking into this process
and that he isn't a lawyer but, state law clearly has particular restrictions and clauses
relating to the City Manager's position.
Councilmember Nephew said he understood the council doesn't have a written contract
with Mr. Copeland to give guidance to the council so the council will be dealing with the
interpretation of statute and public employment law. Councilmember Nephew said if the
council gets someone with the expertise in that area it may be a very short conversation
with them but he thinks it's a conversation the council should have to allow for the proper
procedure for removal to occur.
January 14, 2008 City Council Minutes 4
Councilmember Rossbach said it would be important that the council does not use the
current city attorney to advise the council in this matter. There is a political climate that
will take some time to settle down so even if City Attorney, Mr. Kantrud was giving the
council the best advice it could be that his advice could be viewed as skewed one way
or the other. In order to protect Mr. Kantrud, he believed the council would want to bring
in an outside attorney for this consultation. The League of Minnesota Cities might be one
option to bring an attorney in to guide the council to ensure that the council doesn't
make any mistakes that could make the council look bad in the future.
Councilmember Hjelle said the League of Minnesota Cities stood the city up for the
Special City Council Meeting that the league themselves called for at 2:30 p.m. Friday
for the 5:30 p.m. meeting this evening. Councilmember Hjelle said he wasn't sure the
League of Minnesota Cities was the best solution at this point.
Councilmember Rossbach said he too was disappointed that the attorneys for the
League of Minnesota Cities didn't show up for the 5:30 p.m. meeting, however they are
the city's source for legal advice so the fact that the league missed one meeting doesn't
cancel out the league's history with the city.
Councilmember Juenemann said she agrees that the council needs to take cautious
action and get outside advice. She agrees with both Councilmember Rossbach and
Hjelle's comments. She too doesn't appreciate being stood up by people who called the
meeting. However, that meeting was over current litigation. One primary role of the
league is to consult and advise. The league might be a place for the council to start; it
might not be the only place the council could seek such advice but the council needs
advice how to precede appropriately. She said from her standpoint the city needs a
redirection in management.
Councilmember Nephew said he would like to see this process proceed as a series of
motions. When you look at the past couple of years he thinks the council needs to look
for opportunities to build larger majorities on decisions. If the council can parse it out
and allow people to disagree on specific disagreements then the council can come
together on agreement on the other parts of it. Such as a motion to put someone on
administrative leave. That may not have as broad as support as specific decisions that
follow that up such as, how to direct the city attorney or staff to proceed. He thinks this
discussion should be broken into a series of motions.
Mayor Longrie said typically when there is an item on the agenda the person whose
agenda item it is prepares a report so the majority of the councilmembers can be part of
that discussion. There are two councilmembers that she knows do not have any
materials that have been discussed with regard to what these motions and decisions
might be and what might be formulated.
Mayor Longrie said she is not suggesting there has been a violation of the open meeting
law because the council knows that if you have two councilmember's speaking to each
other it is not a violation of the open meeting law. Mayor Longrie said if you have two
councilmember's who are speaking together with the person who has not yet taken
office in the city and they have decided how they want to do things, it is not a violation.
But on the other hand, two of the councilmembers do not have the benefit of having any
written materials in front of them with regard to what is being proposed here.
January 14, 2008 City Council Minutes
Mayor Longrie said if the council wants to hark back to April of 2006 and talk about that
day, that council all had a packet of information, a copy of the statute, a copy of the
resolution, and a copy of the legal basis. The council doesn't have that here tonight so
the council can have this discussion but it's hardly completely informed without having
had any written information whatsoever in the packet. Perhaps if Councilmember
Rossbach has a handout for the council at this time she would like to read it.
Councilmember Rossbach said there is intentionally no report because if there was a
report that would indicate that there had been a lot of pre -thought given to this whole
subject. There is no report, no councilmember has a report. The council is discussing it
and hearing it at the same time. He said he had been chastised for preparing a report
and in some cases you just can't win. It is what it is and he suggested moving forward
because there is no sense in lingering.
Councilmember Nephew said he was going to say much the same that was said by
Councilmember Rossbach. The argument supports this approach. After winning the
election he thought about how he tries to implement the change that he campaigned for
and not run afoul of the open meeting law; wanting to get good advice; not being sure as
just a council member elect for instance, what he was entitled to have access to as far
as discussions and so forth. Councilmember Nephew said that was precisely why rather
than taking action as Mayor Longrie did after the special election the Mayor made a
motion and issues came up at that meeting regarding conflict of interest topics and the
city attorney brought forward; which whether or not they were justified, they resulted in a
mess in public and a second meeting. At which time the Mayor did prepare that report
with sections of statute. He said he went back and reviewed the council meeting and
minutes and read the state statute and now the Mayor comes to the conclusion that
rather than him coming to discuss this as the council is and taking a path forward to find
someone in the area of expertise to make sure the council does it right there should
have been a written report.
Mayor Longrie said she would propose the council put together a Citizen's Committee of
7 citizens to assist the council in what they would like to see with regard to a CEO of the
city.
Councilmember Rossbach said he would agree but he would say it should be more than
7 citizens. That could take place when we determine "who it is" and "what it is" as far as
qualifications for a person to lead the council forward.
Councilmember Juenemann said the council is putting the cart before the horse. The
council isn't having a discussion about the process right now. We need to have one. The
discussion should be fairly extensive as will the process be. Yes we need to be inclusive
and we need to have attention to detail but she thinks that is what the council is trying to
get to at this point. Councilmember Juenemann felt like the council was talking about the
person that's in the room as a third party. She said or cease and assist all the great
ideas the council has about how the council is going to do it.
Councilmember Juenemann moved that the council place Mr. Copeland on immediate
administrative leave, suspending access in his current duties while the council seeks
counsel for details appropriate to transitioning the city manager position.
January 14, 2008 City Council Minutes
Seconded by Councilmember Rossbach. Ayes — Councilmembers Juenemann
Nephew and Rossbach
Nays — Mayor Longrie &
Councilmember Hjelle
The motion passed.
Councilmember Nephew said the League of Minnesota Cities gave him two legal
counsel names that he wanted to share with the council so everyone on the council has
the same information.
Councilmember Rossbach asked if the idea was to pass this information onto Mr.
Kantrud and add other names for Mr. Kantrud to check to see if any of these individuals
are available to assist the council with advice?
Councilmember Nephew said the council could expand the list by adding names. He
liked the fact that these two names were suggested by the League of Minnesota Cities
but he wasn't sure of their availability to assist the council with advice. Perhaps Mr.
Kantrud could speak to that if the chair so directed.
Councilmember Rossbach commented that Councilmember Nephew mentioned that he
had never met these people that were mentioned to him by the league. In looking at
these names he said he had never met them which are somewhat relevant because the
council would be better off in some of the upcoming proceedings to deal with people that
have no particular connection to the city. As the council makes other decisions, the
council will need to make sure the council can forego the part about a councilmember
shouldn't know a lawyer because of a conflict of interest. Councilmember Rossbach
proposed to turn over the two names to Mr. Kantrud and if there are other resources that
Mr. Kantrud has a way to check on or has some idea of names of law firms that
specialize in this area of law, Mr. Kantrud could bring those names and information
forward to the council. The council would also need to know monetary information for
the use of their services. All of this information should be done in four to five weeks.
Councilmember Nephew said the timeframe should be shorter and it should be possible
to find out if legal counsel is available and get some consultation prior to the next council
meeting. Mr. Kantrud being the city's legal counsel has something to say and he was
interested in hearing what he has to say under the rules.
Mr. Kantrud said if he is going to approach individual lawyers he would like to know
specifically what the council is going to need the lawyers to do. Mr. Kantrud said that
information would be helpful in narrowing down "who" to ask and for "how long the
engagement would be for' and if the council is talking about a process that would take a
long period of time the council could run into a potential conflict if the city is going to
spend over a certain amount of money. Mr. Kantrud said if this is a quick contract
interpretation in terms of what the city can do with the current city manager going
forward, that's one thing. If the council is talking about engaging someone throughout
the process, that's another. He asked that the terms be spelled out specifically for him.
January 14, 2008 City Council Minutes
Councilmember Rossbach said the two major questions would be to ask for advice
regarding "what to do if there is a termination for cause" verses just the "at will employee
with no cause involved". He said there is no way that he wants the city in another court
case so he wants the city to be advised by a lawyer how to make sure that doesn't
happen.
Councilmember Nephew said timeliness is of the essence from reading the state statute
regarding a city manager position. The council could find them in a situation. From the
election campaign, the attention was pretty clear to the public and state statute which
allows for a hearing process with a specific time table. If the council finds themselves
where they have constructively taken an action that starts the clock ticking then the
council can't be waiting a month because that could create the kind of legal jeopardy the
council is trying to avoid.
Councilmember Rossbach made a motion to direct Mr. Kantrud to investigate possible
outside counsel that could advise the city council on the process for terminating the citX
manager.
Mr. Kantrud said he would try to bring two to five names of legal counsel, their
availability and their rates back to the council and this could take 1 to 1'/2 weeks
depending on how quickly individuals communicate with him.
Seconded by Councilmember Nephew.
Councilmember Nephew offered a Friendly amendment that specifically addresses the
question of whether there is an employment contract or not and what are the legal
requirements under the law regarding this position of public employment so that the city
take action in an appropriate manner.
Councilmember Rossbach agreed to the Friendly amendment.
Ayes — Councilmembers Juenemann
Nephew and Rossbach
Nays — Mayor Longrie &
Councilmember Hjelle
The motion passed.
Councilmember Rossbach said the city needs to have an "Acting" City Manager put in
place and not an Interim City Manager since Mr. Copeland hasn't been terminated.
Councilmember Rossbach said he previously spoke to the Public Works Director, Chuck
AN regarding if the council meeting came to this and if he or the council were to ask Mr.
AN if he would be interested in filling the role as "Acting" City Manager so he wouldn't
waste time if Mr. AN wasn't interested. Mr. AN said he would be interested in serving as
"Acting" City Manager. Councilmember Rossbach asked Mr. AN if he would fill the role
as "Acting" City Manager?
Mr. AN replied, yes he would.
January 14, 2008 City Council Minutes
Councilmember Nephew moved to appoint Chuck AN as "Acting' City Manager effective
immediately.
Seconded by Councilmember Rossbach.
Mayor Longrie said personally she has reservations about Mr. AN being the Acting City
Manager because she had expressed during many council meetings various issues that
have occurred that concern her. Such as escrow accounts being insufficient and not
covering issues that remain on various properties in the city. Not knowing what the fund
balances was in the Environmental Utility Tax and using those funds and borrowing from
other accounts until the money came in, which of course costs the city additional money.
These are things that she still shares concerns about. She knows the majority of the
council doesn't share those same concerns but she is putting those concerns on the
record. There are several other instances that she could list, but won't.
Councilmember Hjelle asked if Chuck AN was still in the management union?
Mr. AN said yes.
Councilmember Hjelle asked how the city can appoint someone that is in the union
without having the union's approval because the city got in trouble for doing that once
before.
Councilmember Rossbach said Mr. AN would serve as Public Works Director and serve
as the "Acting" City Manager.
Councilmember Nephew said the MCSA is engaged in litigation and contract
negotiations with the city right now so he would suggest amending the motion to build a
wall that keeps Mr. AN from any potential conflict of interest issues that may arise during
the "Acting" City Manager period for a union that employee would be going back into.
Mr. Kantrud said he is not the Human Resources Attorney and therefore is not
comfortable answering that question. He said he could get an answer to that question
very quickly. However, just for the council's information the city is still in negotiations with
a few unions.
Councilmember Nephew asked who the council would consult with the union to get an
answer to that question?
Mr. Kantrud said a union representative.
Councilmember Nephew asked if the council could take a break and make a phone call
since time is of the essence?
Mr. Kantrud said its now 8:15 p.m. but he could get back to the council with an answer
on Tuesday.
Councilmember Nephew said when this situation was being discussed almost two years
ago, it is important to have a union representative here. Since a representative for the
union is present at this meeting perhaps the council should call a short break.
January 14, 2008 City Council Minutes
Mayor Longrie asked Mr. Kantrud if the city has the authority to engage in conversation
as a council with the union in a Plan B city?
Mr. Kantrud said he would not recommend they do that here as an open discussion.
Councilmember Juenemann asked if the council did take a break is the union
representative allowed to have a conversation with the council in private?
Mr. Kantrud said he could have that conversation but he would be reliant on the union
representative than with his own knowledge of Labor Relations Law so he wouldn't feel
comfortable giving that advice tonight. He said he could consult with others and get back
to the council. He said the city has an attorney for that situation. (who was not present)
Councilmember Rossbach said the city needs an "Acting" City Manager for two to three
weeks. He said he can only think of three people that don't fall into the problem of being
in a union. Karen Guilfoile, Bob Mittet and Bob Dollerschell. He asked if Ms. Guilfoile
would be willing to fill the position to serve as "Acting" City Manager?
Ms. Guilfoile said she doesn't have a contract with the city and she has been paying
union dues for 1 year although she is supposed to be one of the managers and has
been fulfilling the role as a manager, the union considers her a member.
Councilmember Rossbach asked Bob Mittet if he would accept the role as "Acting" City
Manager?
Mr. Mittet said he would briefly accept the role.
Councilmember Nephew withdrew his original motion for Chuck AN as the "Acting" City
Manager.
Councilmember Rossbach moved to appoint Bob Mittet as the "Acting' City Manager.
Seconded by Councilmember Nephew. Ayes — Councilmembers Juenemann
Nephew and Rossbach
Nays — Mayor Longrie &
Councilmember Hjelle
The motion passed.
Mayor Longrie said she voted no - not because she doesn't believe Mr. Mittet can
do the job, she objected to the transaction being done.
Councilmember Juenemann said her motion was to place Mr. Copeland on immediate
administrative leave to take place immediately. Mr. Copeland must turn his keys in and
pack his belongings.
Mr. Copeland then left the building.
January 14, 2008 City Council Minutes 10
G.
*The council took a break at 8:30 p.m.
*The council reconvened at 8:40 p.m.
VISITOR PRESENTATIONS
1. Bob Zick, 2515 White Bear Avenue, Maplewood.
2. Christine Stone, 2727 Hazelwood Street, Maplewood.
3. Peter Rekstad, 2380 Legion Lane, Lake Elmo. He presented the council with a
written statement for the permanent record regarding the Cottages of
Maplewood.
4. Nancy Lazaryan, residing in various areas of Minnesota.
5. Richard Currie, 1937 Kenwood Avenue East, Maplewood.
6. Patty Gearin, 2575 Carver Avenue, Maplewood.
7. Bill Schriener, 1098 Beaver Creek Parkway, Maplewood.
8. Ron Cockriel, 943 Century Avenue, Maplewood.
Mayor Longrie closed Visitor Presentations.
Mayor Longrie made a motion to direct staff to put together a report regarding the Village
on Woodlyn also known as the Cottages of Maplewood to bring back to the council in a
month with the outcome. In the meantime the money owed to the city from the sale
should go into an escrow to be held until which time the council will revisit this issue in a
month.
Seconded by Councilmember Rossbach. Ayes — All
The motion passed.
H. APPOINTMENTS/PRESENTATIONS
(This item was moved before Public Hearings because there was time to wait for the
public hearing to begin after 7:15 p.m.)
CONSENT AGENDA
1. Councilmember Juenemann moved to approve items 1, 2, 3, 5, 8, 9, 11, 15, 16, &
17.
Seconded by Councilmember Hjelle.
Ayes — Mayor Longrie,
Councilmembers Juenemann
Nephew & Rossbach
Abstain — (Councilmember Hjelle
abstained only for item
17)
2. Councilmember Juenemann moved to approve item 4.
Seconded by Mayor Longrie. Ayes — All
January 14, 2008 City Council Minutes
11
3. Mayor Longrie moved to approve item 6.
Seconded by Councilmember Nephew. Ayes - All
4. Councilmember Juenemann moved to approve item 7.
Seconded by Mayor Longrie. Ayes — All
5. Mayor Longrie moved to approve item 10.
Seconded by Councilmember Nephew. Ayes — All
6. Mayor Longrie moved to approve item 12.
Seconded by Councilmember Rossbach. Ayes — All
7. Mayor Longrie moved to approve item 13.
Seconded by Councilmember Rossbach. Ayes - All
8. Councilmember Juenemann moved to approve item 14.
Seconded by Councilmember Hjelle. Ayes - All
1. Approval of Claims
Councilmember Juenemann moved Approval of Claims.
ACCOUNTS PAYABLE:
$ 1,284,814.48 Checks # 74263 thru # 74318
$ 433,397.81 Disbursements via debits to checking account
Dated 11/29/07 thru 12/07/07
$ $ 736,403.33 Checks # 74319 thru # 74415
$ 106,712.40 Disbursements via debits to checking account dated 12/07/07-12/13/07
$ 2,561,328.02 Total Accounts Payable
PAYROLL
$ 468,805.54 Payroll Checks and Direct Deposits dated 12/14/07
$ 2,628.90 Payroll Deduction check # 1004039 thru # 1004041 dated 12/14/07
$ 471,434.44 Total Payroll
$ 3,032,762.46 GRAND TOTAL
January 14, 2008 City Council Minutes 12
ACCOUNTS PAYABLE:
$ 294,825.85 Checks # 74416 thru # 74486 dated 12/18/07 to 12/24/07
$ 270,433.50 Disbursements via debits to checking account dated 12/13/07
thru 12/20/07
$ 394,080.91 Checks # 74487 thru # 74510
$ 99,399.75 Disbursements via debits to checking account dated 12/20/07-12/27/07
$ 1,058,740.01 Total Accounts Payable
PAYROLL
$ 465,043.16 Payroll Checks and Direct Deposits dated 12/28/07
$ 2,652.23 Payroll Deduction check # 1004159 thru # 1004161 dated 12/28/07
$ 467,695.39 Total Payroll
$ 1,526,435.40 GRAND TOTAL
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
2. Authorization to make payment for Eden Systems yearly support contract.
Councilmember Juenemann moved to approve Authorization to make payment for Eden
Systems yearly support contract.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
3. Authorization to make payment for ESRI for Arc GIS Server and ArcView yearly
support.
Councilmember Juenemann moved to approve the Authorization to make payment for
ESRI for Arc GIS Server and ArcView yearly support.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
January 14, 2008 City Council Minutes 13
4. Conditional Use Permit Review — St. Paul Regional Water Services Materials
Recycling (Sandy Lake — County Road B).
a. Senior Planner, Tom Ekstrand addressed the council and referred further
questions to Mr. Blackstone with the SPRWS.
b. John Blackstone, Project Engineer for St. Paul Regional Water Services
Materials Recycling. He said they ran out of funding and had to discontinue the
capping project. They worked an arrangement out for Frattalone & Sons to
complete the project. He met with Todd Olin the construction supervisor for
Frattalone last week. He informed him that they had two projects that they would
have had more than enough material to finish the project but the funding fell
through. 80% of the project is completed. They seeded about 13 acres of the
project so dust shouldn't be a problem this spring.
Councilmember Juenemann moved to approve the Conditional Use Permit Review — St.
Paul Regional Water Services Materials Recycling (Sandy Lake — County Road B).
Seconded by Mayor Longrie. Ayes — All
The motion passed.
5. Conditional Use Permit Review— CarMax/Mogren Addition (Beam Avenue and
Country View Drive).
Councilmember Juenemann moved to approve the Conditional Use Permit Review —
CarMax/Mogren Addition (Beam Avenue and Country View Drive
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
6. Regent at Legacy Village — Release of Obligation (Kennard Street and Legacy
Parkway).
a. Senior Planner, Tom Ekstrand answered questions of the council.
b. Administration and Finance Manager, Bob Mittet answered questions of the
council.
Mayor Longrie moved to approve the Regent at Legacy Village — Release of Obligation
(Kennard Street and Legacy Parkway.
CITY OF MAPLEWOOD
RAMSEY COUNTY, MINNESOTA
RELEASE OF OBLIGATIONS UNDER
MASTER DEVELOPMENT AGREEMENT
(Regent Senior Housing)
January 14, 2008 City Council Minutes 14
I. Recital.
1.1 The Effective Date of this Agreement is January 14„ 2008.
1.2 The Parties to this Agreement are City of Maplewood, Minnesota, a Minnesota
statutory city ("City"), Legacy Holdings -MW LLC, a Minnesota limited liability company
("Master Developer") and Regent at Maplewood, LLC, a Minnesota limited liability company
("Successor Developer").
1.3 City and Master Developer are parties to a Master Development Agreement with
an effective date of September 8, 2003, recorded November 21, 2003 as Document No. 3704070
in the Office of the Ramsey County Recorder and recorded November 21, 2003 as Document
No. 1791278 in the Office of the Ramsey County Registrar of Titles, as amended by First
Amendment to Development Agreement with an effective date of February 9, 2004 and as
amended by a Second Amendment to Development Agreement with an effective date of April
26, 2005 ("Master Development Agreement").
1.4 Various real estate parcels are subject to the Master Development Agreement and
Successor Developer has entered into an Agreement with Master Developer to purchase one of
the parcels subject to the Master Development Agreement for the purpose of developing
residential senior/assisted living housing (the "Regent Senior Development"). Such parcel is
legally described as:
Lots 1, Block 3, LEGACY VILLAGE AT MAPLEWOOD, Ramsey County,
Minnesota, according to the recorded plat (the "Subject Parcel").
1.5 In connection with the acquisition of the Subject Parcel, Successor Developer has
requested that the Subject Parcel and the Successor Developer be released from the terms and
conditions of the Master Developer Agreement pursuant to Section 9.2(c) of the Master
Development Agreement and Master Developer has requested to be released from the terms and
conditions of the Master Development Agreement as to the Subject Parcel pursuant to Section
9.3 of the Master Development Agreement.
1.6 City has approved the Subject Parcel for use consistent with the Regent Senior
Development, on that basis, City is willing to release both the Successor Developer and Master
Developer from the terms and conditions of the Master Development Agreement subject to
Master Developer's acknowledgement of its obligations under Section 6.2 of the Master
Development Agreement to pay a part of the special assessments attributable to the Subject
Parcel as set forth on Exhibit F to the Master Development Agreement and its continuing
obligations as to other parcels that remain subject to the Master Development Agreement.
THEREFORE, IT IS AGREED AS FOLLOWS:
II. Agreement.
2.1 Given Successor Developer's proposed Regent Senior Development as set forth
above, City agrees that:
January 14, 2008 City Council Minutes 15
(a) The Subject Parcel is released from the Master Development Agreement
and therefore the Master Development Agreement no longer encumbers the Subject
Parcel.
(b) Successor Developer has no liability or obligations under the Master
Development Agreement; provided however, this Agreement does not release the
Successor Developer from its obligations to timely pay City fees and charges due in the
ordinary course of development and building construction.
2.2 Successor Developer will commence and complete the Regent Senior
Development as approved by the City.
2.3 From and after the effective date set forth above, Master Developer is released
from its obligations under the Master Development Agreement as to the Subject Parcel subject to
the following:
(a) Master Developer will comply with the terms of Section 6.2 of the
Master Development Agreement in connection with the payment of special assessments
attributable to the Subject Parcel; and
(b) Master Developer remains liable under the Master Development
Agreement as to all other parcels subject to the Master Development Agreement that
are not released hereby or previously released.
2.4 All notices require or permitted under this Agreement shall be in writing and shall
be deemed to have been duly given or served if delivered, in person or deposited in the United
States mail, postage prepaid, for mailing by certified or registered mail, return receipt requested
or of telegram, by prepaid telegram, telex, FAX or telecopier, and addressed, to a party to this
Agreement, to the address set forth herein:
If to Master Developer: Legacy Holdings — MW, LLC
Attn: John C. Brandt
1300 Wells Fargo Plaza
7900 Xerxes Avenue South
Bloomington, MN 55431
Tel. No.: (952) 838-2415
Fax No.: (952) 838-2401
If to Successor Developer: Regent at Maplewood, LLC.
Attn: Frank A. Janes
1300 Wells Fargo Plaza
7900 Xerxes Avenue South
Bloomington, MN 55431
January 14, 2008 City Council Minutes 16
Tel. No.: (952) 838-2420
Fax No.: (952) 838-2401
If to City: City of Maplewood
Attn:
1830 East County Road B
Maplewood, MN 55109
Tel. No.: (651) 249-2000
Fax. No.: (651) 748-3096
This document drafted by:
Briggs and Morgan, P.A. (DJC)
W2200 First National Bank Bldg.
332 Minnesota Street
St. Paul, MN 55101
(Remainder of Page Intentionally Left Blank)
January 14, 2008 City Council Minutes 17
Dated: , 2008
STATE OF MINNESOTA
) ss
COUNTY OF RAMSEY
CITY OF MAPLEWOOD, MINNESOTA, a
Minnesota statutory city.
Its:
By:
Its:
The foregoing instrument was acknowledged before me this day of , 2008, by
the and , the
of the City of Maplewood, Minnesota on behalf of said City.
Notary Public
[Separate Signature Page to Release of Obligations Under Master Development Agreement]
January 14, 2008 City Council Minutes 18
Dated: 2008 MASTER DEVELOPER:
LEGACY HOLDINGS -MW LLC, a Minnesota
limited liability company
la
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
Keith Gruebele
Its: Chief Financial Manager
The foregoing instrument was acknowledged before me this day of '2008, by
Keith Gruebele, the Chief Financial Manager of Legacy Holdings -MW LLC, a Minnesota limited
liability company on behalf of said limited liability company.
Notary Public
[Separate Signature Page to Release of Obligations Under Master Development Agreement]
January 14, 2008 City Council Minutes 19
Dated: 2008 SUCCESSOR DEVELOPER:
REGENT AT MAPLEWOOD, LLC, a Minnesota
limited liability company
By:
Its:
STATE OF MINNESOTA)
) ss
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this day of , 2008, by
, the of Regent at Maplewood, LLC, a Minnesota
limited liability company, on behalf of said company.
Notary Public
[Separate Signature Page to Release of Obligations Under Master Development Agreement]
Seconded by Councilmember Nephew. Ayes — All
The motion passed.
January 14, 2008 City Council Minutes 20
7. Annual Renewal of 2008 Liquor Licenses.
Councilmember Juenemann moved to approve the Annual Renewal of 2008 Liquor Licenses.
RESOLUTION 08-01-002
RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, RAMSEY COUNTY,
MINNESOTA, that the following On -Sale, Off -Sale, Club and Wine Liquor Licenses, having been
previously duly issued by this Council, are hereby approved for renewal for one year, effective January
1, 2008, with approvals granted herein subject to satisfactory results of required Police, Fire and health
inspections:
On -Sale Liquor Licenses
5-8 Tavern & Grill
Chili's Grill & Bar #224
Nickelby's
2289 Minnehaha Avenue
1800 Beam Avenue
1780 Southlawn Drive
Acapulco Restaurant
Chipotle Mexican Grill
Olive Garden #1200
3069 White Bear Avenue
2303 White Bear Avenue
1749 Beam Avenue
AMF Maplewood Lanes
Dean's Tavern
Outback Steakhouse
1955 English Street
1986 Rice Street
1770 Beam Avenue
Applebee's Neighborhood Grill
Dive Bar
Red Lobster #0283
& Bar
3035 White Bear Avenue
2925 White Bear Avenue
3001 White Bear Avenue
Guldens Roadhouse
Stargate Bar & Dance Club
Bleechers Bar & Grill
2999 North Highway 61
1700 Rice Street, Suite J
2220 White Bear Avenue
Huey's Saloon
T.G.I. Friday's #0472
Broadway Bar & Pizza
2425Highway 61 N.
3087 White Bear Avenue
Maplewood
1900 County Road D East
Jake's City Grille
The Chalet
1745 Beam Avenue East
1820 Rice Street N.
Buffalo Wild Wings
3085 White Bear Avenue
Keller Golf Clubhouse
The Rock
2166 Maplewood Drive
2029 Woodlynn Avenue
Champps — Maplewood
1734 Adolphus Street
Myth Nightclub
3090 Southlawn Drive
January 14, 2008 City Council Minutes 21
On -Sale 3.2 Beer Licenses
Duc's Restaurant
705 Century Avenue North
Party Service
1850 White Bear Avenue
Off -Sale 3.2 Beer Licenses
Cub Foods #30244
100 County Road B West
Cub Foods #31264
2390 White Bear Avenue
Maplewood Kwik Mart
2150 McMenemy Street
McKnight Market & Gas
1690 McKnight Road North
Rainbow Foods #8861
2501 White Bear Avenue
Richard's Market
1344 Frost Avenue
SuperAmerica #4022
1750 White Bear Avenue
SuperAmerica #4089
11 Century Avenue South
SuperAmerica #4371
2529 White Bear Avenue
Off -Sale Liquor Licenses
A-1 Liquor
19 Century Avenue North
Big Discount Liquor
2515 White Bear Avenue
Cub Discount Liquor
100 County Road B West
Heritage Liquor LLC
1347 Frost Avenue
Hillside Liquors
1690 McKnight Road North
Maplewood Wine Cellar
1281 Frost Avenue
January 14, 2008 City Council Minutes 22
(off sale liquor licenses continued)
Merwin Liquors
1700-D Rice Street
MGM Liquor Warehouse
2950 White Bear Avenue
Party Time Liquor
1835 Larpenteur Avenue East
Princess Liquor `n Tobacco
2728 Stillwater Road
Sarrack's Int'I. Wine & Spirits
2305 Stillwater Road
White Bear Liquor & Wine
2223 White Bear Avenue
Club License
Maplewood Moose Lodge #963
1946 English Street
Wine/Strona Beer Licenses
Bambu Asian Cuisine
1715-A Beam Avenue
Goodrich Golf Course
1820 Van Dyke St N.
Noodles & Company
2865 White Bear Avenue
Pei Wei Asian Diner
3095 White Bear Avenue, #101
Taste of India
1745 Cope Avenue East
The Ponds at Battle Creek
601 Century Avenue S.
Seconded by Mayor Longrie.
The motion passed.
Ayes — All
January 14, 2008 City Council Minutes 23
8. Temporary Gambling — Carver Elementary Parent Teacher Organization.
Councilmember Juenemann moved to approve the Temporary Gambling for Carver Elementary
Parent Teacher Organization.
RESOLUTION 08-01-003
BE IT HEREBY RESOLVED, by the City Council of Maplewood, Minnesota, that the
temporary premises permit for lawful gambling is approved for the Carver Elementary PTO, 2680
Upper Afton Road, Maplewood, Minnesota.
FURTHERMORE, that the Maplewood City Council waives any objection to the timeliness
of application for said permit as governed by Minnesota Statute §349.213.
FURTHERMORE, that the Maplewood City Council requests that the Gambling Control
Division of the Minnesota Department of Gaming approve said permit application as being in
compliance with Minnesota Statute §349.213.
NOW, THEREFORE, be it further resolved that this Resolution by the City Council of
Maplewood, Minnesota, be forwarded to the Gambling Control Division for their approval.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
9. Donation from Schmelz Countryside Volkswagen & Saab.
Councilmember Juenemann moved to approve the Donation from Schmelz Countryside
Volkswagen & Saab.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
10. Approve Cleanup of Sewage Backup.
Mayor Longrie moved to Approve Cleanup of Sewage Backup at 1842 and 1846 Furness Street.
Seconded by Councilmember Nephew. Ayes — All
The motion passed.
11. Approve Emergency Repair of Sewage Pump at Lift Station 6.
Councilmember Juenemann moved to Approve Emergency Repair of Sewage Pump at Lift
Station 6.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
January 14, 2008 City Council Minutes 24
12. Gladstone Area Redevelopment, City Project 04-21, Approve Resolution Designating
Parkway Drive, Frost Avenue and East Shore Drive as Municipal State Aid Streets.
Mayor Longrie moved to approve the Gladstone Area Redevelopment, City Project 04-21,
Approving the Resolution Designating Parkway Drive, Frost Avenue and East Shore Drive as
Municipal State Aid Streets.
RESOLUTION 08-01-004
ESTABLISHING MUNICIPAL STATE AID HIGHWAY
WHEREAS, the City Council of the City of Maplewood desires that the streets hereinafter
described meet all necessary criteria and thus should be designated as a Municipal State Aid
street under the provision of Minnesota law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood that
the roadways described as follows, to -wit:
Parkway Drive, TH 61 to Frost Avenue (.060 mile)
Frost Avenue, Parkway Drive to White Bear Avenue (1.60 mile)
East Shore Drive, Larpenteur Avenue to Frost Avenue (0.68 mile)
be, and hereby is established, located, and designated a Municipal State Aid street of said city,
subject to the approval of the Commissioner of Transportation of the State of Minnesota.
BE IT FURTHER RESOLVED, that the city clerk is hereby authorized and directed to
forward two certified copies of this resolution to the Commissioner of Transportation for her
consideration, and that upon her approval of the designation of said road or portion thereof, the
same be constructed, improved, and maintained as a Municipal State Aid street of the City of
Maplewood to be numbered and known as Municipal State Aid Street 151 for Parkway Drive and
Frost Avenue and Municipal State Aid Street 152 for East Shore Drive.
Seconded by Councilmember Rossbach. Ayes — All
The motion passed.
13. Master Partnership Agreement and Local Government Work Order Agreement between the
Minnesota Department of Transportation and the City of Maplewood.
Mayor Longrie moved to approve the Master Partnership Agreement and Local Government
Work Order Agreement between the Minnesota Department of Transportation and the City of
Maplewood.
STATE OF MINNESOTA
AND CITY OF MAPLEWOOD
MASTER PARTNERSHIP CONTRACT
This master contract is between the State of Minnesota, acting through its Commissioner of
Transportation hereinafter referred to as the "State" and the City of Maplewood acting through its
City Council, hereinafter referred to as the "Local Government".
January 14, 2008 City Council Minutes 25
Recitals
The parties are authorized to enter into this agreement pursuant to Minnesota Statutes
§§15.061, 471.59 and 174.02.
2. Minnesota Statutes Section 161.20, subdivision 2 authorizes the Commissioner of
Transportation to make arrangements with and cooperate with any governmental authority
for the purposes of constructing, maintaining and improving the trunk highway system.
3. Each party to this Contract is a "road authority" as defined by Minnesota Statutes §160.02
(subd. 25).
4. Minnesota Statutes Section 161.39, subdivision 1, authorizes a road authority to perform
work for another road authority. Such work may include providing technical and
engineering advice, assistance and supervision, surveying, preparing plans for the
construction or reconstruction of roadways, and performing roadway maintenance.
5. Minnesota Statues §174.02 (subd. 6) authorizes the Commissioner of Transportation to
enter into agreements with other governmental entities for research and experimentation;
for sharing facilities, equipment, staff, data, or other means of providing transportation -
related services; or for other cooperative programs that promote efficiencies in providing
governmental services, or that further development of innovation in transportation for the
benefit of the citizens of Minnesota.
6. Each party wishes to occasionally procure services from the other party, which the parties
agree will enhance the efficiency of delivering governmental services at all levels. This
Master Partnership Contract provides a framework for the efficient handling of such
requests. This Master Partnership Contract contains terms generally governing the
relationship between the parties hereto. When specific services are requested, the parties
will (unless otherwise specified herein) enter into a "Work Order' contracts.
7. Subsequent to the execution of this Master Partnership Contract, the parties may (but are
not required to) enter into "Work Order' contracts. These will Work Orders will specify the
work to be done, timelines for completion, and compensation to be paid for the specific
work.
8. The parties are entering into this Master Partnership Contract to establish terms that will
govern all of the Work Orders subsequently issued under the authority of this Contract.
Master Contract
Term of Master Contract
1.1 Effective Date: This contract will be effective on the date last signed by the Local
Government, and all State officials as required under Minn. Stat. § 16C.05, subd. 2.
A party must not accept work under this Contract until it is fully executed.
1.2 Expiration Date. This Contract will expire five years after its effective date.
1.3 Work Order Contracts. A work order contract must be negotiated and executed (by
both the State and the Local Government) for each particular engagement. The work
order contract will specify the detailed scope of work and deliverables for that
engagement. A party must not begin work under a work order until such work order is
fully executed. The terms of this Master Partnership Contract will apply to all work
orders issued hereunder, unless specifically varied in the work order.
January 14, 2008 City Council Minutes 26
The Local Government understand that this Master Contract is not a guarantee of any
payments or work order assignments, and that payments will only be issued for work
actually performed under fully -executed work orders.
1.4 Survival of Terms. The following clauses survive the expiration or cancellation of this
master contract and all work order contracts: 11. Liability; 12. State Audits; 13.
Government Data Practices and Intellectual Property; 16. Publicity and Endorsement;
17. Governing Law, Jurisdiction, and Venue; and 21. Data Disclosure.
1.5.1 Exhibits. A sample work order contracts is attached and incorporated into this contract
as Exhibit A.
2 Scope of Work/Deliverables
2.1 A party may request the other party to perform any of the following services under
individual work order contracts.
2.1.1 Professional and Technical Services. A party may provide professional and
technical services upon the request of the other party. As defined by Minnesota
Statutes §16C.08 (subd. 1) professional/technical services "means services that are
intellectual in character, including consultation, analysis, evaluation, prediction,
planning, programming, or recommendation; and result in the production of a report or
completion of a task". Professional and technical services do not include providing
supplies or materials except as incidental to performing such services. Professional
and technical services include (by way of example and without limitation) engineering
services, surveying, foundation recommendations and reports, environmental
documentation, right-of-way assistance (such as performing appraisals or providing
relocation assistance, but excluding the exercise of the power of eminent domain),
geometric layouts, final construction plans, graphic presentations, public relations, and
facilitating open houses. A party will normally provide such services with its own
personnel, however, a party's professional/technical services may also include hiring
and managing outside consultants to perform work.
2.1.2 Routine Roadway Maintenance. A party may provide routine roadway maintenance
upon the request of the other party. Routine roadway maintenance services may
include, but are not limited to; lane or edge striping, pavement message painting, sign
repair, guardrail repair, carcass removal, or equipment repair. Routine maintenance
does not include roadway reconstruction. All services must be performed by an
employee with sufficient skills, training, expertise or certification to perform such work,
and work must be supervised by a qualified employee of the party performing the work.
2.1.3 Construction Administration. A party may administer roadway construction projects
upon the request of the other party. Roadway construction includes (by way of example
and without limitation) the construction, reconstruction, or rehabilitation of mainline,
shoulder, median, pedestrian or bicycle pathway, lighting and signal systems,
pavement mill and overlays, seal coating, guardrail installation, and channelization.
These services may be performed by the providing party's own forces, or the providing
party may administer outside contracts for such work. Construction administration may
include letting and awarding construction contracts for such work (including state
projects to be completed in conjunction with local projects). All contract administration
services must be performed by an employee with sufficient skills, training, expertise or
certification to perform such work.
January 14, 2008 City Council Minutes 27
2.2 When a need is identified, the State and the Local Government will discuss the
proposed work and the resources needed to perform the work.
If a party desires to perform such work, the parties will negotiate the specific and
detailed work tasks and cost. The State will then prepare a work order contract.
Generally, a work order contract will be limited to one specific project/engagement,
although "on call" work orders may be prepared for certain types of services, especially
for "routine roadway maintenance" items as identified section 2.1.2. The work order will
also identify specific deliverables required, and timeframes for completing work. A work
order must be fully executed by the parties prior to work being commenced. The Local
Government will not be paid for work performed prior to authorization by the State.
3 Responsibilities of the Providing Party
The party requesting the work will be referred to as the "Requesting Party" and the party
performing the work will be referred to as the "Providing Party". Each work order will set
forth particular requirements for that project/engagement.
3.1.1.1 Terms Applicable to ALL Work Orders. The terms in this section 3.1 will apply to ALL
work orders.
3.1.1.2 Each work order will identify an Authorized Representative for each party. Each party's
authorized representative is responsible for administering the work order, and has the
authority to make any decisions regarding the work, and to give and receive any notices
required or permitted under this Master Contract or the work order.
3.1.1.3 The Providing Party will furnish and assign a publicly employed licensed engineer
(Project Engineer), to be in responsible charge of the project(s) and to supervise and
direct the work to be performed under each work order. For services not requiring an
engineer, the Providing Party will furnish and assign another responsible employee to be
in charge of the project. The services of the Providing Party under a work order may not
be otherwise assigned, sublet, or transferred unless approved in writing by the
Requesting Party's authorized representative. This written consent will in no way relieve
the Providing Party from its primary responsibility for the work.
3.1.4 If the Local Government is the Providing Party, the Project Engineer may request in
writing specific engineering and/or technical services from the State, pursuant to
Minnesota Statutes Section 161.39. Such services may be covered by other technical
service agreements. If the State furnishes the services requested, the Local Government
will promptly pay the State to reimburse the state trunk highway fund for the full cost and
expense of furnishing such services. The costs and expenses will include the current
State labor additives and overhead rates, subject to adjustment based on actual direct
costs that have been verified by audit.
3.1.5 Only the receipt of a fully executed work order contract authorizes the Providing Party to
begin work on a project. Any and all effort, expenses, or actions taken by the Providing
Party before the work order contract is fully executed is considered unauthorized and
undertaken at the risk of non-payment.
3.1.6 In connection with the performance of this contract and any work orders issued
hereunder, the Providing Agency will comply with all applicable Federal and State laws
and regulations.
When the Providing Party is authorized or permitted to award contracts in connection with
any work order, the Providing Party will require and cause its contractors and
subcontractors to comply with all Federal and State laws and regulations.
January 14, 2008 City Council Minutes 28
3.2 Additional Terms for Routine Roadway Maintenance. The terms of section 3.1 and this
section 3.2 will apply to all work orders for routine roadway maintenance.
3.2.1 Unless otherwise provided for by agreement or work order, the Providing Party must obtain
all permits and sanctions that may be required for the proper and lawful performance of the
work.
3.2.2 The Providing Party must perform maintenance in accordance with MnDOT maintenance
manuals, policies and operations.
3.2.3 The Providing Party must use State -approved materials, including (by way of example and
without limitation), sign posts, sign sheeting, and de-icing and anti -icing chemicals.
3.3 Additional Terms for Construction Administration. The terms of section 3.1 and this
section 3.3 will apply to all work orders for construction administration.
3.3.1 Contract(s) must be awarded to the lowest responsible bidder in accordance with state law.
3.3.2 Contractor(s) must be required to post payment and performance bonds in an amount
equal to the contract amount. The Providing Party will take all necessary action to make
claims against such bonds in the event of any default by the contractor.
3.3.3 Contractor(s) must be required to perform work in accordance with the latest edition of the
Minnesota Department of Transportation Standard Specifications for Construction.
3.3.4 For work performed on State right-of-way, contractor(s) must be required to indemnify and
hold the State harmless against any loss incurred with respect to the performance of the
contracted work, and must be required to provide evidence of insurance coverage
commensurate with project risk.
3.3.5 Contractor(s) must pay prevailing wages pursuant to state law.
3.3.6 Contractor(s) must comply with all applicable Federal, and State laws, ordinances and
regulations, including but not limited to applicable human rights/anti-discrimination laws
and laws concerning the participation of Disadvantaged Business Enterprises in federally -
assisted contracts.
3.3.7 The Providing Party may approve minor changes to the Requesting Party's portion of the
project work if such changes do not increase the Requesting Party's cost obligation under
the applicable work order.
3.3.8 The Providing Party will not approve any contractor claims for additional compensation
without the Requesting Party's written approval, and the execution of a proper
amendment to the applicable work order when necessary. The Local Government will
tender the processing and defense of any such claims to the State upon the State's
request.
3.3.9 The Local Government must coordinate all trunk highway work affecting any utilities with
the State's Utilities Office.
3.3.10 The Providing Party must coordinate all necessary detours with the Requesting Party.
4. Responsibilities of the Requesting Party
January 14, 2008 City Council Minutes 29
4.1 After authorizing the Providing Party to begin work, the Requesting Party will furnish any
data or material in its possession relating to the project that may be of use to the Providing
Party in performing the work.
4.2 All such data furnished to the Providing Party will remain the property of the Requesting
Party and will be promptly returned upon the Requesting Party's request or upon the
expiration or termination of this contract (subject to data retention requirements of the
Minnesota Government Data Practices Act and other applicable law).
4.3 The Providing Party will analyze all such data furnished by the Requesting Party. If the
Providing Party finds any such data to be incorrect or incomplete, the Providing Party will
bring the facts to the attention of the Requesting Party before proceeding with the part of
the project affected. The Providing Party will investigate the matter, and if it finds that
such data is incorrect or incomplete, it will promptly determine a method for furnishing
corrected data. Delay in furnishing data will not be considered justification for an
adjustment in compensation.
4.4 The State will provide to the Local Government copies of any Trunk Highway fund clauses
to be included in the bid solicitation and will provide any required Trunk Highway fund
provisions to be included in the Proposal for Highway Construction, that are different from
those required for State Aid construction.
4.5 The Requesting Party will perform final reviews and/or inspections of its portion of the
project work. If the work is found to have been completed in accordance with the work
order contract, the Requesting Party will promptly release any remaining funds due the
Providing Party for the Project(s).
4.6 The work order contracts may include additional responsibilities to be completed by the
Requesting Party.
5 Time
In the performance of project work under a work order contract, time is of the essence.
6 Consideration and Payment
6.1 Consideration. The Requesting Party will pay the Providing Party as specified in the
work order.
6.2 State's Maximum Obligation. The total compensation to be paid by the State to the
Local Government under all work order contracts issued pursuant to this Master Contract
will not exceed $1 million.
6.3 Travel Expenses. It is anticipated that all travel expenses will be included in the base
cost of the Providing Party's services, and unless otherwise specifically set forth in an
applicable work order, the Providing Party will not be separately reimbursed for travel and
subsistence expenses incurred by the Providing Party in performing any work order
contract. In those cases where the State agrees to reimburse travel expenses, such
expenses will be reimbursed in the same manner and in no greater amount than provided
in the current "Mn/DOT Travel Regulations" a copy of which is on file with and available
from the Mn/DOT District Office.
The Local Government will not be reimbursed for travel and subsistence expenses
incurred outside of Minnesota unless it has received the State's prior written approval for
such travel.
6.4 Payment.
January 14, 2008 City Council Minutes 30
6.4.1 Generally. The Requesting Party will pay the Providing Party as specified in the
applicable work order, and will make prompt payment in accordance with Minnesota law.
6.4.2 Payment by the Local Government. The Local Government will make payment to the
order of the Commissioner of Transportation. IMPORTANT NOTE: PAYMENT MUST
REFERENCE THE "MN/DOT CONTRACT NUMBER" SHOWN ON THE FACE PAGE OF
THIS CONTRACT. Remit payment to the address below:
Mn/DOT
Attn: Cash Accounting
RE: Mn/DOT Contract Number (see note above)
Mail Stop 215
395 John Ireland Blvd
St. Paul, MN 55155
6.4.3Payment by the State.
6.4.3.1 Generally. The State will promptly pay the Local Government after the Local
Government presents an itemized invoice for the services actually performed
and the State's Authorized Representative accepts the invoiced services.
Invoices must be submitted as specified in the applicable work order, but no
more frequently than monthly.
6.4.3.2 Retainage for Professional and Technical Services. For work orders for professional
and technical services, as required by Minn. Stat. § 16C.08, subd. 5(b), no more than
90 percent of the amount due under any work order contract may be paid until the final
product of the work order contract has been reviewed by the State's authorized
representative. The balance due will be paid when the State's authorized
representative determines that the Local Government has satisfactorily fulfilled all the
terms of the work order contract.
7 Conditions of Payment
All work performed by the Providing Party under a work order contract must be performed to
the Requesting Party's satisfaction, as determined at the sole and reasonable discretion of
the Requesting Party's Authorized Representative and in accordance with all applicable
federal and state laws, rules, and regulations. The Providing Party will not receive payment
for work found by the State to be unsatisfactory or performed in violation of federal or state
law.
8 Local Government's Authorized Representative and Project Manager; Authority to
Execute Work Order Contracts
8.1 The Local Government's Authorized Representative for administering this master contract is
the Local Government's Engineer, and the Engineer has the responsibility to monitor the
Local Government's performance. The Local Government's Authorized Representative is
also authorized to execute work order contracts on behalf of the Local Government without
approval of each proposed work order contract by its governing body.
8.2 The Local Government's Project Manager will be identified in each work order contract.
9 State's Authorized Representative and Project Manager
January 14, 2008 City Council Minutes 31
9.1 The State's Authorized Representative for this master contract is the District State Aid
Engineer, who has the responsibility to monitor the State's performance.
9.2 The State's Project Manager will be identified in each work order contract.
10 Assignment, Amendments, Waiver, and Contract Complete
10.1 Assignment. Neither party may assign or transfer any rights or obligations under this Master
Contract or any work order contract without the prior consent of the other and a fully executed
Assignment Agreement, executed and approved by the same parties who executed and
approved this Master Contract, or their successors in office.
10.2 Amendments. Any amendment to this master contract or any work order contract must be in
writing and will not be effective until it has been executed and approved by the same parties
who executed and approved the original contract, or their successors in office.
10.3 Waiver. If a party fails to enforce any provision of this master contract or any work order
contract, that failure does not waive the provision or the party's right to subsequently enforce
it.
10.4 Contract Complete. This master contract and any work order contract contain all
negotiations and agreements between the State and the Local Government. No other
understanding regarding this master contract or any work order contract issued hereunder,
whether written or oral, may be used to bind either party.
11 Liability
Each party will be responsible for its own acts and omissions to the extent provided by law.
The Local Government's liability is governed by Minnesota Statutes chapter 466 and other
applicable law. The State's liability is governed by Minnesota Statutes section 3.736 and other
applicable law. This clause will not be construed to bar any legal remedies a party may have
for the other party's failure to fulfill its obligations under this master contract or any work order
contract. Neither party agrees to assume any environmental liability on behalf of the other
party. A Providing Party under any work order is acting only as a "Contractor' to the
Requesting Party, as the term "Contractor' is defined in Minnesota Statutes §1156.03 (subd.
10), and is entitled to the protections afforded to a "Contractor' by the Minnesota
Environmental Response and Liability Act.
12 State Audits
Under Minn. Stat. § 16C.05, subd. 5, the party's books, records, documents, and accounting
procedures and practices relevant to any work order contract are subject to examination by
the parties and by the State Auditor or Legislative Auditor, as appropriate, for a minimum of
six years from the end of this Master Contract.
13 Government Data Practices and Intellectual Property
13.1. Government Data Practices. The Local Government and State must comply with the
Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data
provided by the State under this Master Contract and any work order contract, and as it
applies to all data created, collected, received, stored, used, maintained, or disseminated
by the Local Government under this Master Contract and any work order contract.
The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this
clause by either the Local Government or the State.
13.2.1. Intellectual Property Rights
January 14, 2008 City Council Minutes 32
13.2.1 Intellectual Property Rights. The Requesting Party will own all rights, title, and interest
in all of the intellectual property rights, including copyrights, patents, trade secrets,
trademarks, and service marks in the Works and Documents created and paid for under
work order contracts.
Works means all inventions, improvements, discoveries (whether or not patentable),
databases, computer programs, reports, notes, studies, photographs, negatives, designs,
drawings, specifications, materials, tapes, and disks conceived, reduced to practice, created
or originated by the Providing Party, its employees, agents, and subcontractors, either
individually or jointly with others in the performance of this master contract or any work
order contract. Works includes "Documents." Documents are the originals of any
databases, computer programs, reports, notes, studies, photographs, negatives, designs,
drawings, specifications, materials, tapes, disks, or other materials, whether in tangible or
electronic forms, prepared by the Providing Party, its employees, agents, or contractors, in
the performance of a work order contract. The Documents will be the exclusive property of
the Requesting Party and all such Documents must be immediately returned to the
Requesting Party by the Providing Party upon completion or cancellation of the work order
contract. To the extent possible, those Works eligible for copyright protection under the
United States Copyright Act will be deemed to be "works made for hire." The Providing
Party Government assigns all right, title, and interest it may have in the Works and the
Documents to the Requesting Party. The Providing Party must, at the request of the
Requesting Party, execute all papers and perform all other acts necessary to transfer or
record the Requesting Party's ownership interest in the Works and Documents.
Notwithstanding the foregoing, the Requesting Party grants the Providing Party an
irrevocable and royalty -free license to use such intellectual for its own non-commercial
purposes, including dissemination to political subdivisions of the state of Minnesota and to
transportation -related agencies such as the American Association of State Highway and
Transportation Officials.
13.2.2 Obligations with Respect to Intellectual Property.
13.2.2.1 Notification. Whenever any invention, improvement, or discovery (whether or not
patentable) is made or conceived for the first time or actually or constructively
reduced to practice by the Providing Party, including its employees and
subcontractors, in the performance of the work order contract, the Providing Party
will immediately give the Requesting Party's Authorized Representative written
notice thereof, and must promptly furnish the Authorized Representative with
complete information and/or disclosure thereon.
13.2.2.2 Representation. The Providing Party must perform all acts, and take all steps
necessary to ensure that all intellectual property rights in the Works and
Documents are the sole property of the Requesting Party, and that neither
Providing Party nor its employees, agents or contractors retain any interest in and
to the Works and Documents.
14 Affirmative Action
The State intends to carry out its responsibility for requiring affirmative action by its
Contractors, pursuant to Minnesota Statutes §363A.36. Pursuant to that Statute, the
Local Government is encouraged to prepare and implement an affirmative action plan
for the employment of minority persons, women, and the qualified disabled, and
submit such plan to the Commissioner of the Minnesota Department of Human Rights.
January 14, 2008 City Council Minutes 33
In addition, when the Local Government lets a contract for the performance of work
under a work order issued pursuant to this Master Contract, it must include the
following in the bid or proposal solicitation and any contracts awarded as a result
thereof:
14.1 Covered Contracts and Contractors. If the Contract exceeds $100,000 and the
Contractor employed more than 40 full-time employees on a single working day during the
previous 12 months in Minnesota or in the state where it has its principle place of
business, then the Contractor must comply with the requirements of Minn. Stat. § 363A.36
and Minn. R. Parts 5000.3400-5000.3600. A Contractor covered by Minn. Stat. § 363A.36
because it employed more than 40 full-time employees in another state and does not have
a certificate of compliance, must certify that it is in compliance with federal affirmative
action requirements.
14.2 Minn. Stat. § 363.073. Minn. Stat. § 363A.36 requires the Contractor to have an
affirmative action plan for the employment of minority persons, women, and qualified
disabled individuals approved by the Minnesota Commissioner of Human Rights
("Commissioner') as indicated by a certificate of compliance. The law addresses
suspension or revocation of a certificate of compliance and contract consequences in that
event. A contract awarded without a certificate of compliance may be voided.
14.3 Minn. R. Parts 5000.3400-5000.3600.
14.3.1 General. Minn. R. Parts 5000.3400-5000.3600 implement Minn. Stat. § 363A.36. These
rules include, but are not limited to, criteria for contents, approval, and implementation
of affirmative action plans; procedures for issuing certificates of compliance and
criteria for determining a contractor's compliance status; procedures for addressing
deficiencies, sanctions, and notice and hearing; annual compliance reports;
procedures for compliance review; and contract consequences for non-compliance.
The specific criteria for approval or rejection of an affirmative action plan are contained
in various provisions of Minn. R. Parts 5000.3400-5000.3600 including, but not limited
to, parts 5000.3420-5000.3500 and 5000.3552-5000.3559.
14.3.1.2 Disabled Workers. The Contractor must comply with the following affirmative
action requirements for disabled workers:
(1) The Contractor must not discriminate against any employee or applicant for
employment because of physical or mental disability in regard to any
position for which the employee or applicant for employment is qualified.
The Contractor agrees to take affirmative action to employ, advance in
employment, and otherwise treat qualified disabled persons without
discrimination based upon their physical or mental disability in all
employment practices such as the following: employment, upgrading,
demotion or transfer, recruitment, advertising, layoff or termination, rates of
pay or other forms of compensation, and selection for training, including
apprenticeship.
(2) The Contractor agrees to comply with the rules and relevant orders of the
Minnesota Department of Human Rights issued pursuant to the Minnesota
Human Rights Act.
(3) In the event of the Contractor's noncompliance with the requirements of this
clause, actions for noncompliance may be taken in accordance with
Minnesota Statutes Section 363A.36, and the rules and relevant orders of
January 14, 2008 City Council Minutes 34
the Minnesota Department of Human Rights issued pursuant to the
Minnesota Human Rights Act.
(4) The Contractor agrees to post in conspicuous places, available to
employees and applicants for employment, notices in a form to be
prescribed by the commissioner of the Minnesota Department of Human
Rights. Such notices must state the Contractor's obligation under the law to
take affirmative action to employ and advance in employment qualified
disabled employees and applicants for employment, and the rights of
applicants and employees.
(5) The Contractor must notify each labor union or representative of workers
with which it has a collective bargaining agreement or other contract
understanding, that the Contractor is bound by the terms of Minnesota
Statutes Section 363A.36, of the Minnesota Human Rights Act and is
committed to take affirmative action to employ and advance in employment
physically and mentally disabled persons.
14.3.2 Consequences. The consequences for the Contractor's failure to implement its
affirmative action plan or make a good faith effort to do so include, but are not limited to,
suspension or revocation of a certificate of compliance by the Commissioner, refusal by
the Commissioner to approve subsequent plans, and termination of all or part of this
contract by the Commissioner or the State.
14.3.3 Certification. The Contractor hereby certifies that it is in compliance with the
requirements of Minn. Stat. § 363.073 and Minn. R. Parts 5000.3400-5000.3600 and is
aware of the consequences for noncompliance.
15 Workers' Compensation
Each party will be responsible for its own employees for any workers compensation claims. This
Master Contract, and any work orders issued hereunder, are not intended to constitute an
interchange of government employees under Minnesota Statutes §15.53. To the extent that this
Master Contract, or any work order issued hereunder, is determined to be subject to Minnesota
Statutes §15.53, such statute will control to the extent of any conflict between the Contract and
the statute.
16Publicity
16.1 Publicity. Any publicity regarding the subject matter of a work order contract where the
State is the Requesting Party must identify the State as the sponsoring agency and must
not be released without prior written approval from the State's Authorized Representative.
For purposes of this provision, publicity includes notices, informational pamphlets, press
releases, research, reports, signs, and similar public notices prepared by or for the Local
Government individually or jointly with others, or any subcontractors, with respect to the
program, publications, or services provided resulting from a work order contract.
16.2 Data Practices Act. Section 16.1 is not intended to override the Local Government's
responsibilities under the Minnesota Government Data Practices Act.
17 Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice -of -law provisions, governs this master contract and all
work order contracts. Venue for all legal proceedings out of this master contract or any work
order contracts, or the breach of any such contracts, must be in the appropriate state or federal
court with competent jurisdiction in Ramsey County, Minnesota.
January 14, 2008 City Council Minutes 35
18 Prompt Payment; Payment to Subcontractors
The parties must make prompt payment of their obligations in accordance with applicable law. As
required by Minn. Stat. § 16A.1245, when the Local Government lets a contract for work pursuant
to any work order, the Local Government must require its contractor to pay all subcontractors,
less any retainage, within 10 calendar days of the prime contractor's receipt of payment from the
Local Government for undisputed services provided by the subcontractor(s) and must pay interest
at the rate of one and one-half percent per month or any part of a month to the subcontractor(s)
on any undisputed amount not paid on time to the subcontractor(s).
19 Minn. Stat. § 181.59 The Local Government will comply with the provisions of Minn. Stat. §
181.59 which requires:
Every contract for or on behalf of the state of Minnesota, or any county, city, town, township, school,
school district, or any other district in the state, for materials, supplies, or construction shall contain
provisions by which the Contractor agrees: (1) That, in the hiring of common or skilled labor for the
performance of any work under any contract, or any subcontract, no contractor, material supplier, or
vendor, shall, by reason of race, creed, or color, discriminate against the person or persons who are
citizens of the United States or resident aliens who are qualified and available to perform the work to
which the employment relates; (2) That no contractor, material supplier, or vendor, shall, in any
manner, discriminate against, or intimidate, or prevent the employment of any person or persons
identified in clause (1) of this section, or on being hired, prevent, or conspire to prevent, the person
or persons from the performance of work under any contract on account of race, creed, or color; (3)
That a violation of this section is a misdemeanor; and (4) That this contract may be canceled or
terminated by the state, county, city, town, school board, or any other person authorized to grant the
contracts for employment, and all money due, or to become due under the contract, may be forfeited
for a second or any subsequent violation of the terms or conditions of this contract.
20 Termination
20.1 Termination by the State for Convenience. The State or commissioner of Administration
may cancel this Master Contract and any work order contracts at any time, with or without
cause, upon 30 days written notice to the Local Government. Upon termination, the Local
Government and the State will be entitled to payment, determined on a pro rata basis, for
services satisfactorily performed.
20.2 Termination by the Local Government for Convenience. The Local Government may
cancel this Master Contract and any work order contracts at any time, with or without cause,
upon 30 days written notice to the State. Upon termination, the Local Government and the
State will be entitled to payment, determined on a pro rata basis, for services satisfactorily
performed.
20.3 Termination for Insufficient Funding. The State may immediately terminate this Master
Contract and any work order contract if it does not obtain funding from the Minnesota
legislature or other funding source; or if funding cannot be continued at a level sufficient to
allow for the payment of the services covered here. Termination must be by written or fax
notice to the Local Government.
The State is not obligated to pay for any services that are provided after notice and effective
date of termination. However, the Local Government will be entitled to payment, determined
on a pro rata basis, for services satisfactorily performed to the extent that funds are
available.
The State will not be assessed any penalty if the master contract or work order is terminated
because of the decision of the Minnesota legislature or other funding source, not to
appropriate funds. The State must provide the Local Government notice of the lack of
funding within a reasonable time of the State's receiving that notice.
January 14, 2008 City Council Minutes 36
21 Data Disclosure
Under Minn. Stat. § 270.66, and other applicable law, the Local Government consents to
disclosure of its federal employer tax identification number, and/or Minnesota tax identification
number, already provided to the State, to federal and state tax agencies and state personnel
involved in the payment of state obligations. These identification numbers may be used in the
enforcement of federal and state tax laws which could result in action requiring the Local
Government to file state tax returns and pay delinquent state tax liabilities, if any.
22 Defense of Claims and Lawsuits
If any lawsuit or claim is filed by a third party (including but not limited to the Local Government's
contractors and subcontractors), arising out of trunk highway work performed pursuant to a valid
work order issued under this Master Contract, the Local Government will, at the discretion of and
upon the request of the State, tender the defense of such claims to the State or allow the State to
participate in the defense of such claims. The Local Government will, however, be solely
responsible for defending any lawsuit or claim, or any portion thereof, when the claim or cause of
action asserted is based on its own acts or omissions in performing or supervising the work. The
Local Government will not purport to represent the State in any litigation, settlement, or
alternative dispute resolution process. The State will not be responsible for any judgment entered
against the Local Government, and will not be bound by the terms of any settlement entered into
by the Local Government except with the written approval of the Attorney General and the
Commissioner of Transportation and pursuant to applicable law.
23 Additional Provisions
23.1 Foreign Outsourcing. If the Local Government lets a contract for professional/technical or
other services pursuant to any work order, the Local Government will require proposing
vendors/bidders to disclose where work will be performed, and will use the extent to which
services will be performed in the United States as a factor in determining the "best value" in
awarding any such contract. It is the State's policy that state funds spent on contracts
remain in the United States to the maximum extent possible.
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January 14, 2008 City Council Minutes 37
LOCAL GOVERNMENT
The Local Government certifies that the appropriate person(s)
have executed the contract on behalf of the Local Government as
required by applicable articles or bylaws.
By:
Title:
Date:
By:
Title:
Date:
COMMISSIONER OF TRANSPORTATION
By:
(with delegated authority)
Title:
Date:
COMMISSIONER OF ADMINISTRATION
As delegated to Materials Management Division
By:
Date:
Mn/DOT Contract Management
As to form & execution
By:
Date:
January 14, 2008 City Council Minutes 38
CFMS Contract No. NA
❑Payable by State
® Receivable by State
STATE OF MINNESOTA
WORK ORDER UNDER
MASTER PARTNERSHIP CONTRACT
State Project (SP): NA Trunk Highway (TH): NA
Project Identification: Services provided by State
This Work Order Contract is issued under the authority of State of Minnesota, Department of
Transportation (Mn/DOT) Master Partnership Contract No. listed above between the state of Minnesota
acting through its Commissioner of Transportation ("State") and the City of Maplewood, a political
subdivision of the State of Minnesota ("Local Government") and is subject to all applicable provisions and
covenants of that Agreement which are incorporated herein by reference.
Work Order Contract
Article 1 Term of Work Order Contract: Incorporation of Exhibits:
Effective date: This Work Order Contract will be effective on the date that all required signatures are
obtained by State, pursuant to Minnesota Statutes Section 16C.05, subdivision 2. The Providing Agency
must not begin work under this Contract until ALL required signatures have been obtained and the
Providing Agency has been notified in writing to begin such work by the Requesting Agency's
Authorized Representative.
Expiration date: This Work Order Contract will expire on November 30, 2012, or when all obligations have
been satisfactorily fulfilled, which ever occurs first.
Exhibits: Exhibits A through B are attached and incorporated into this Work Order Contract.
Article 2 Nature of Work: Requesting and Providing Party:
2.1 The box(es) checked below indicate the nature of the work to be performed. See Section 2.1 of the Master
Partnership Contract for applicable definitions.
® Routine Roadway Maintenance (See Exhibit B)
® Professional And Technical Services (See Exhibit B)
❑ Construction Administration
2.2 The boxes checked below show which party is the "Requesting Party" and which party is the "Providing
Party".
2.2.1 The Requesting Party is ❑ State ® Local Government
2.2.2 The Providing Party is ® State ❑ Local Government
Article 3 Scope of Work:
3.1 The Providing Party will perform services under this Work Order summarized generally as follows:
The State will provide transportation -related routine roadway maintenance and/or professional/technical
services to the Local Government. Examples of services are shown on Exhibit B.
January 14, 2008 City Council Minutes 39
Article 4 Deliverables by the Providing Party :
4.1 Upon receipt of a written request form the Local Government, the State will evaluate the request and
promptly inform the Local Government if the State will perform the work, either as submitted or with
modifications. If accepting the work, the State will identify a project manager for the work to be performed.
Any work assignment accepted by the State pursuant to this contract is subject to all terms and conditions
of this contract.
4.2 After the State accepts a work assignment, the State will promptly perform the work in a professional
manner and in accordance with generally accepted government standards. If the Local Government
deems that the work is not proceeding in a satisfactory manner, the Local Government will bring such
concerns to the State's Project Manager in charge of the particular project. The Parties will endeavor to
resolve any disputes concerning work under this contract in the most informal and cost-effective manner
reasonably available.
Article 5 Items provided or completed by the Requesting Party
5.1 The Local Government will submit a brief written request for any services to the State. The request may be
in the form of a letter or memorandum and may be transmitted by fax or email. A request may be made via
telephone, but will not be considered accepted unless acknowledged in writing by the State. The request
must include sufficient detail on the scope of the work to be performed to afford the State the opportunity to
assess the resources necessary to accomplish the work and develop a cost estimate.
Article 6 Consideration of Payment:
6.1 Payment Basis. The State may, at its option, charge the Local Government on either a lump -sum or actual
cost basis for performance of the work.
6.2 Actual Cost Basis. Unless a lump sum or other payment arrangement is agreed upon, all work performed
by the State will be billed on an actual cost basis. For work performed upon an actual cost basis, the State
will provide a report showing the actual cost of the services performed by the State under this contract.
The State's "Actual Cost" will consist of all of the following elements:
(1) The actual cost of any materials provided by the State; and
(2) Travel expenses reasonably and necessarily incurred by the State in the performance of the work.
Such travel expenses will be subject to the limitations contained in the "Minnesota Department of
Transportation Travel Regulations" in effect at the time the work is performed; and
(3) Labor costs incurred by the State in performance of the work. Such labor costs will consist of:
(a) The actual hourly wage or salary of State personnel for time pent working on the project; and
(b) Labor and overhead additive, at a rate to be determined annually by the appropriate State
Financial/Accounting Officer. Labor additive will include fringe benefits, holiday and vacation pay, and
applicable workers compensation and payroll tax expenses.
(4) Equipment costs incurred by the State in the performance of the work. Such cost will consist of
(a) The hourly rental rate of the equipment; and
(b) Fuel and other direct operational costs not included in the equipment rental rate.
Article 7 Terms of Payment:
7.1 The State will invoice the Local Government upon completion of the services, or at regular intervals not
more than once monthly as agreed upon by the parties.
7.2 The Local Government will promptly pay the invoice(s) submitted by the State. Payment must be remitted
to the address below:
Minnesota Department of Transportation
Attn: Cash Accounting
RE: Mn/DOT invoice number (include the Mn/DOT invoice number)
Mail stop 215
395 John Ireland Blvd
St. Paul, MN 55155
IMPORTANT: THE REMITTANCE MUST INCLUDE THE "Mn/DOT INVOICE NUMBER."
January 14, 2008 City Council Minutes 40
Article 8 Local Government's Project Manager:
8.1 The Local Government's Project Manager for this Work Order is the Local Government's Engineer for
technical matters. The Local Government 's Project Manager for this Work Order is responsible for
overseeing the Local Government 's fulfillment of its obligations under this Work Order, reviewing and
approving invoices, resolving disputes related to this Work Order, and for giving or receiving any notices
required or permitted by this Work Order.
Article 9 State's Project Manager:
9.1 The State's Project Manager, for this Work Order is the District Engineer. The State's Project Manager is
responsible for overseeing the State's fulfillment of its obligations under this Work Order, reviewing and
approving invoices, resolving disputes related to this Work Order, and for giving or receiving any notices
required or permitted by this Work Order.
Article 10 Termination.
10.1 Termination by the State. The Local Government, the State or the Commissioner of Administration may
cancel this Work Order at any time, with or without cause, upon 30 days' written notice to the other Party.
Upon termination, the Providing Party will be entitled to payment, determined on a pro rata basis, for
services satisfactorily performed.
10.2 Termination for Insufficient Funding. If the State is the Requesting Party, The State may immediately
terminate this Work Order if it does not obtain funding from the Minnesota Legislature, or other funding
source; or if funding cannot be continued at a level sufficient to allow for the payment of the services
covered here. Termination must be by written or fax notice to the Local Government . The State is not
obligated to pay for any services that are provided after notice and effective date of termination. However,
the Local Government will be entitled to payment, determined on a pro rata basis, for services satisfactorily
performed to the extent that funds are available. The State will not be assessed any penalty if the Work
Order is terminated because of the decision of the Minnesota Legislature, or other funding source, not to
appropriate funds. The State must provide the Local Government notice of the lack of funding within a
reasonable time of the State's receiving that notice.
Article 11 Additional Provisions
11.1 The parties intend that the services provided under this contract will not be construed as an
interchange of employees subject to Minnesota Statutes § 15.51, et.seq. If the provision of the
services under this contract is deemed to be subject to Minnesota Statutes § 15.51, et. seq., and
any provision in this contract is determined to conflict with such statute, then the statute will
control to the extent of any such conflict.
LOCAL GOVERNMENT
The Local Government certifies that the appropriate
person(s) have executed the contract on behalf of the
Local Government as required by applicable articles,
bylaws, resolutions, or ordinances.
A
Title:
Date:
COMMISSIONER OF TRANSPORTATION
By: _
Title:
Date:
District Engineer
COMMISSIONER OF ADMINISTRATION
By:
Date:
January 14, 2008 City Council Minutes 41
EXHIBIT A — STANDARD TERMS
STANDARD TERMS FOR ROUTINE ROADWAY MAINTENANCE
1. The Providing Party will perform routine maintenance in accordance with the specifications and
guidelines in the current "Mn/DOT Maintenance Manual"
2. Unless otherwise provided in this Work Order, the Providing Party is not required to perform
extraordinary maintenance or reconstruction. The Providing Party should notify the Requesting
Party immediately if it becomes aware of any maintenance, not covered by this Work Order that
should be addressed immediately to prevent the risk of serious injury to the public.
3. The Providing Party will perform traffic control in accordance with Minnesota Manual on Uniform
Traffic Control Devices.
STANDARD TERMS FOR PROFESSIONAL AND TECHNICAL SERVICES
1. The Providing Party will prepare all documents in accordance with Minnesota law, applicable
Federal laws and regulations, and geometric design standards for trunk highway plans as described
in the current versions of Mn/DOT Manuals, available through the Mn/DOT State Aid Division or on
the Mn/DOT website, www.dot.state.mn.us
2. The Providing Party will, as applicable in developing plans, include the standard specifications from
the latest edition of Mn/DOT Standard Specifications for Construction, and all amendments thereto.
3. The Providing Party will furnish the personnel, services, supplies, and equipment necessary to
properly perform, supervise, and document the work for the project(s). The services of the
Providing Party to be performed hereunder may not be assigned, sublet, or transferred unless
approved in writing by Mn/DOT. This written consent will in no way relieve the Local Government
from its primary responsibility for performance of the work.
January 14, 2008 City Council Minutes 42
Exhibit B - Available Services
Following are examples of services available from Mn/DOT pursuant to this agreement. Other services
may be available upon request. Note that this agreement cannot be used for the construction of joint
facilities, nor does it replace the "Municipal Agreement' process for cooperative construction programs.
Maintenance
• Pavement striping
Bridge
Construction/Maintenance services including:
• Bridge load ratings
• Bridge inspections
• Hydraulic data system support/management
Standards, Research and Governance services including:
• Bridge standards and specifications development
• Bridge research
• Bridge construction, maintenance and hydraulic training
Bridge Construction and Maintenance services including:
• Construction planning and programming
• Construction support
• Steel fabrication services
• Maintenance assistance
Bridge Design services including:
• Preliminary bridge studies and plans
• Final bridge designs and plans
• Bridge construction estimating
• Hydraulic structure recommendations
• Consultant management
Land Management
• Appraisal services
• Legal services
• Eminent domain support
• Legal descriptions
• Geodetic surveying
• Photogrametric mapping
• Platting
• Direct purchase
Electronic Communications
• Electronic and telecommunications system design, installation and maintenance services
Materials
• Pavement condition data
• Materials testing
• Box culvert inspection
• Pre -stress beams for county and city bridges
January 14, 2008 City Council Minutes 43
RESOLUTION 08-01-005
Whereas, The Minnesota Department of Transportation wishes to cooperate closely with
local units of government to coordinate the delivery of transportation services and maximize the
efficient delivery of such services at all levels of government; and
Whereas, Mn/DOT and local governments are authorized by Minnesota Statutes sections
471.59, 174.02, and 161.20, to undertake collaborative efforts for the design, construction,
maintenance and operation of state and local roads; and
Whereas: the parties wish to able to respond quickly and efficiently to such opportunities
for collaboration, and have determined that having the ability to write "work orders" against a
master contract would provide the greatest speed and flexibility in responding to identified needs.
Therefore, be it resolved:
1. That the City of Maplewood enter into a Master Partnership Contract with the Minnesota
Department of Transportation, a copy of which was before the Council.
2. That the proper City officers are authorized to execute such contract, and any
amendments thereto.
3. That the City Engineer is authorized to negotiate work order contracts pursuant to the
Master Contract, which work order contracts may provide for payment to or from Mn/DOT,
and that the City Engineer may execute such work order contracts on behalf of the City
without further approval by this Council.
Approved this 14th day of January, 2008.
Attest:
M
Title:
Date:
Seconded by Councilmember Rossbach. Ayes — All
The motion passed.
January 14, 2008 City Council Minutes 44
14. Design and Production Services Contract — Steiner & Associates Graphics.
a. City Clerk, Citizen Services Manager, Karen Guilfoile, answered questions of the council.
Councilmember Juenemann moved to approve the Design and Production Services Contract on
a month by month basis for Steiner and Associates Graphics, to retain the services of Heidi
Carey for the production of the Parks and Recreation Catalog and send out for an RFP for
publication services.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
'This item was reconsidered at the January 17, 2008, continuation of the January 14, 2008, meeting.
15. Annual Lawful Gambling License — Merrick Companies, Inc.
Councilmember Juenemann moved to approve the Annual Lawful Gambling License — Merrick
Companies, Inc.
RESOLUTION 08-01-006
BE IT HEREBY RESOLVED, by the City Council of Maplewood, Minnesota, that the
premises permit for lawful gambling is approved for Merrick Companies to operate at The Rock,
2029 Woodlyn Avenue, Maplewood, Minnesota.
FURTHERMORE, that the Maplewood City Council waives any objection to the timeliness
of application for said permit as governed by Minnesota Statute §349.213.
FURTHERMORE, that the Maplewood City Council requests that the Gambling Control
Division of the Minnesota Department of Gaming approve said permit application as being in
compliance with Minnesota Statute §349.213.
NOW, THEREFORE, be it further resolved that this Resolution by the City Council of
Maplewood, Minnesota, be forwarded to the Gambling Control Division for their approval.
Seconded by Councilmember Hjelle. Ayes — All
The motion passed.
16. Annual Lawful Gambling License — Pioneer Booster Club.
Councilmember Juenemann moved to approve the Annual Lawful Gambling License — Pioneer
Booster Club.
RESOLUTION 08-01-007
BE IT HEREBY RESOLVED, by the City Council of Maplewood, Minnesota, that the
premises permit for lawful gambling is approved for the Pioneer Booster Club, to operate at
Bleechers Bar located at 2220 White Bear Avenue, Maplewood, Minnesota.
FURTHERMORE, that the Maplewood City Council waives any objection to the timeliness
of application for said permit as governed by Minnesota Statute §349.213.
January 14, 2008 City Council Minutes 45
FURTHERMORE, that the Maplewood City Council requests that the Gambling Control
Division of the Minnesota Department of Gaming approve said permit application as being in
compliance with Minnesota Statute §349.213.
NOW, THEREFORE, be it further resolved that this Resolution by the City Council of
Maplewood, Minnesota, be forwarded to the Gambling Control Division for their approval.
Seconded by Councilmember Hjelle. Ayes - All
The motion passed.
17.2008 Pay Rates for Temporary/Seasonal, Casual Part-time and Paid -Per Call Employees.
Councilmember Juenemann moved to approve the 2008 Pay Rates for Temporary/Seasonal,
Casual Part -Time and Paid -Per Call Employees.
RESOLUTION 08-01-008
WHEREAS, according to the Minnesota Public Employees Labor Relations act, part-time
employees who do not work more than 14 hour per week and temporary/seasonal employees who work in
positions that do not exceed 67 days in a calendar year, or 100 days for full-time students, are not public
employees and are therefore not eligible for membership in a public employee union.
NOW, THEREFORE, BE IT RESOLVED, that the following pay ranges and job classifications are
hereby established for temporary/seasonal, casual part-time (14 hours or fewer/wk) and paid -per -call
employees effective January 14, 2008 upon Council approval.
Accountant
$10.00-30.00
per hour
Accounting Technician
$9.00-22.00
per hour
Administrative Assistant
$9.00-23.00
per hour
Background Investigator
$25.00-35.00
per hour
Building Inspector
$14.00-35.00
per hour
Building Attendant
$6.15-15.00
per hour
Clerk
$7.50-15.00
per hour
Customer Service Assistant
$6.15-15.00
per hour
CSO
$8.00-16.00
per hour
Data Entry Operator
$8.00-12.00
per hour
Election Judge
$6.50-12.00
per hour
Election Judge - Assistant Chair
$9.00-15.00
per hour
Election Precinct Chair
$9.00-16.00
per hour
Engineering Aide
$7.00-16.00
per hour
Engineering Technician
$10.00-16.00
per hour
Fire Department Custodian
$6.00-6.90
per quarter
Firefighter -Paid -Per -Call
$9.00,
$11.27,
per run
$15.77
$18.00
per drill
Firefighter -Paid -Per -Call - Shift Fill-in
$12.00
per hour
Intern
$6.50-20.00
per hour
IT Technician
$15.00-20.00
per hour
Laborer
$6.50-14.00
per hour
January 14, 2008 City Council Minutes
Lifeguard
$6.15-14.00
per hour
Manager on Duty Differential
$1.00
per hour
Office Specialist
$8.50-18.00
per hour
Paramedic
$17.00-22.00
per hour
Receptionist
$8.00-16.00
per hour
Recreation Instructor/Leader
$6.15-32.00
per hour
Recreation Official
$6.15-30.00
per hour
Recreation Worker
$6.15-18.00
per hour
Theater Technician
$20.00-30.00
per hour
Vehicle Technician
$9.00-15.00
per hour
Video Coordinator*
$11.00-19.00
per hour
Video Technician*
$10.00-18.00
per hour
Water Safety Instructor (WSI)
$7.50-16.00
per hour
WSI & Head Lifeguard Differential
$1.00
per hour
(Lifeguards or WSIs working as Head
Lifeguards; Lifeguards working as WSIs)
*Video positions shall be paid a guaranteed minimum flat fee of $50 for 4 hours or less.
BE IT FURTHER RESOLVED, that the City Manager shall have the authority to set the pay rate within the
above ranges.
Seconded by Councilmember
The motion passed.
J. AWARD OF BIDS
None.
Ayes — Mayor Longrie, Councilmembers
Juenemann, Nephew, & Rossbach
Abstain — Councilmember Hjelle
Councilmember Hjelle moved to complete agenda items K1, K2, K4, L1, and L2. Agenda items
K3, K5, K6, K7, L3, and L5 will be heard at the continuation of this evenings meeting at 7:00
p.m. Thursday, January 17, 2008. Agenda items K8 and L4 were removed from the agenda at
the beginning of the meeting at the request of Councilmember Hjelle due to legal issues.
K. UNFINISHED BUSINESS
1. Walter Street Trail Connection, Approve Joint Powers Agreement with the City of
Little Canada.
a. Public Works Director, Chuck AN presented the report.
Mayor Longrie asked if there were any citizens that wanted to speak regarding this item. Nobody
came forward.
Councilmember Hjelle moved to approve the Approve Joint Powers Agreement for the Trail and
Boardwalk Extension with the City of Little Canada; and authorize the Finance Director to transfer
$50,000 from the Park Development Fund to the Water Street Trail Project, Fund 343.
January 14, 2008 City Council Minutes 47
This Agreement is between the City of Little Canada
515 East Little Canada Road
Little Canada MN 55117
And the City of Maplewood
1830 County Road B East
Maplewood MN 55109
Whereas, the City of Little Canada and the City of Maplewood desire to connect the trail
systems that currently exist in each city near Walter Street, Labore Road and County Road D;
Whereas, the residents of both the City of Little Canada and the City of Maplewood would
benefit from the connection of the trail system;
Whereas, The City of Little Canada and the City of Maplewood recognize that it is
economically beneficial to design and construct the project jointly as a single project;
Whereas, plans and specifications for the trail and boardwalk construction have been
prepared by Sanders Wacker Bergly, Inc., Landscape Architects and Planners;
Whereas, the staff and Park Commission from the City of Little Canada and the City of
Maplewood have reviewed and approved the plans;
Whereas, the City of Little Canada and the City of Maplewood are authorized pursuant to
Minnesota State Statutes Section 471.59, commonly known as the Joint Powers Act, to enter
into a Joint Powers Agreement;
Whereas, the City of Little Canada and the City of Maplewood desire to enter into this
Agreement for the purpose of establishing the rights, responsibilities and obligations of the
parties regarding the design, construction, management and maintenance of the Project.
Now, Therefore, in consideration of the mutual covenants contained herein, the City of
Little Canada and the City of Maplewood hereby agree as follows:
Description of the Project
The Project, as shown on the attached construction drawings, Exhibit A, sheets L1 through L5,
shall consist of a bituminous trail (8' width) and a boardwalk (10' width), along with related
landscaping.
The Project, as shown in the attached drawings, begins near Walter Street, where the new trail
will connect with the existing Maplewood Trail on the east side of Walter Street. The new trail will
extend west of Walter Street approximately 700 feet to connect with the existing Little Canada
Trail that runs east from Labore Road. Approximately 230 feet of the trail to be constructed will
be a wood boardwalk that crosses a wetland area.
Cost Estimate
A preliminary cost estimate for the project is attached, Exhibit B, which shows a breakdown of the
anticipated costs for the City of Little Canada and the City of Maplewood. This is only an
estimate. The actual cost of the project may vary and each City will be responsible for the actual
cost of the completed project within their respective area for all work except "mobilization" and
"staking and layout" which shall be divided on a 50/50 basis between the two cities.
January 14, 2008 City Council Minutes 48
Cost Sharin
The bid forms will require a complete breakdown of the contractors cost based on unit prices and
a total lump sum bid. The unit prices will allow an accurate assignment of the cost of the project
to each party. Any lump sum amounts (except for "mobilization" and "staking and layout") will be
assigned to each party based on an estimate of the amount of work occurring within each City as
a percentage of the total amount of the work occurring within each respective City. In the event
that such an allocation is not possible, then those costs will be split on a 50/50 basis.
Prior to the award of the bid, each party shall review the bids received, including the unit prices
and the cost obligation for each party. A revised cost estimate shall be prepared assigning bid
costs to each City. Once written approval is obtained by the designated staff contact from each
City, a contract will be signed between the City of Little Canada and the lowest qualified bidder,
for construction of the entire project. It is also understood that time is of the essence in awarding
the bid and each City shall endeavor to either approve or deny the revised cost estimate with
expediency.
Costs for professional services associated with design shall be the responsibility of each City and
billed on an individual basis. Costs for professional services associated with project management
and oversight shall be included on the estimate of costs and split on a 50/50 basis between each
City, except for any costs that are directly attributable to any one City. In that case, the City
generating the professional services costs shall be responsible for all fees associated with the
service request.
Chanae Orders
The parties acknowledge that change orders may be required on the project and that time is of
the essence on many construction decisions. The parties agree that change orders may be
approved administratively by agreement of the designated staff. The parties further agree that
any change orders over 10% of the total contract amount shall require approval from each
respective city council. Said approval or denial shall be obtained in an expeditious manner to
avoid unnecessary delays in completing the project. If a change order is being processed to
benefit only one City, then only that City needs to approve the change as long as that City
accepts 100% of the cost associated with said change order.
Contracting Agency
The City of Little Canada shall act as the Contracting Agency for the project. The City of Little
Canada will not advertise for bids until it has received authorization from the City of Maplewood to
proceed. The City of Little Canada will advertise for bids in accordance with the requirements of
law applicable to statutory cities. The City of Little Canada will require bid bonds, performance
and payment bonds and insurance as agreed to by both parties and prescribed in the project
specifications attached as Exhibit C.
Sanders Wacker Bergly, Inc., professional consultant responsible for the design and
management of this project shall prepare all addenda, distribute bid documents, received bids
and tabulate bids. The consultant shall forward the bid results to each City for their respective
approvals prior to award of the contract. Little Canada shall award the bid to the lowest
responsible bidder unless that bid exceeds the estimate of costs depicted on Exhibit B by more
than ten percent (10%). If the bid exceeds the estimate by more than 10%, then either City may
choose not to award the bid, in its sole discretion.
January 14, 2008 City Council Minutes 49
The City of Little Canada will enter into a contract with the lowest responsible bidder. As the
Contracting Agency, the City of Little Canada shall have the right to issue change orders, make
payments to the contractor, provide construction observation, require construction testing and
otherwise administer the contract as deemed necessary for the proper completion of the project,
subject to the terms of this agreement.
Staff Designations
Each City shall designate a staff contact who shall be empowered to make administrative
decisions regarding this project for their respective city as provided for by this agreement. The
City of Maplewood hereby designates DuWayne Konewko, Environmental Manager, as the staff
contact for this project. The City of Little Canada hereby designates Jim Morelan, Director of
Parks & Recreation, as the staff contact for this project.
Pavment and Reimbursement
The City of Little Canada will make partial payments to the contractor on a monthly basis
according to the work completed and based upon the recommendation of Sanders Wacker
Bergly, Inc. The City of Little Canada will submit requests for reimbursement to the City of
Maplewood for its portion of the work on a monthly basis. Payment shall be made within fifteen
(15) days of submittal. Each City represents that it has sufficient funding to pay its share of the
project costs.
Final Payment and Acceptance
Prior to final payment, the parties will conduct a final review of the project to determine the final
acceptance of the project from the contractor. Upon recommendation from Sanders Wacker
Bergly, Inc. and final acceptance of the work by each respective City Staff designee, a final
payment will be made to the Contractor.
Insurance
Each party shall maintain in full force and effect liability insurance in the amount of One Million
Dollars ($1,000,000) for any number of claims arising out of a single occurrence. The intent of
the insurance requirements of this provision is to impose on each party a limited duty to defend
and indemnify the other party for claims arising as a result of this Agreement, subject to the limits
of liability under Minnesota Statutes Chapter 466. Under no circumstances shall either party be
required to pay on behalf of itself any amounts in excess of the limits of liability as set forth in
Minnesota Statutes Chapter 466 applicable only to one party. The limits of liability for either of the
parties may not be added together to determine the maximum amount of liability for either party.
Indemnity
Each party agrees to defend, indemnify and hold harmless the other party from all claims,
actions, proceedings and costs (including reasonable attorney's fees and costs of suit), including
liens and any accident, injury, loss or damage whatsoever occurring to any person or to the
property of any person arising after the completion of the construction of the project, or arising out
of this Agreement; provided, however, that the foregoing shall not be applicable to events or
circumstances caused by the negligence or willful act or omission of such indemnified party, its
licensees, agents, servants, employees or anyone claiming by, through or under any of them.
Under no circumstances, however, shall either party be required to pay any amounts in excess of
the limits of liability established in Minnesota Statutes Chapter 466.
January 14, 2008 City Council Minutes 50
Manaaement and Maintenance
Each city shall be responsible for the management and maintenance of that portion of the trail
and boardwalk that is within their respective city after the project is completed. Each City
warrants to the other that it will take all reasonable steps to ensure that the trail is maintained to
appropriate standards to protect trail users from injury during reasonable and appropriate usage
of the trail segment constructed under this agreement. Should one City feel the other is not
maintaining its portion of the trail to appropriate standards, that City shall notify the other city in
writing of the specific concerns. The City with the alleged deficiencies shall respond to the
accusing City within 15 days of receipt of the notice of its position on the matter and specific plans
for correction or why no action is appropriate. Should the accusing City not be in agreement with
the other City, then both Cities agree to submit to the opinion of the League of Minnesota Cities
Insurance Trust (LMCIT) Loss Control staff or some other party of mutual acceptance as to what
level of maintenance is appropriate. Each City agrees to undertake any corrections noted by the
LMCIT (or other party) with appropriate expediency.
Each city shall be responsible for communication with their city's affected property owners,
residents and with Xcel Energy regarding any issues relevant to the trail construction or
operation.
Each city shall be responsible for signage related to their respective sections of the project.
Dispute Resolution
Negotiation
Any claim, dispute or other matter in question, arising out of or related to this Agreement shall first
be subject to negotiation between the parties as a condition precedent to arbitration.
Arbitration
Any claim, dispute or other matter in question, arising out of or relating to this Agreement, if not
resolved by direct negotiation, shall be subject to arbitration. A request for arbitration shall be
made within a reasonable time after the claim, dispute or other matter in question has arisen. No
arbitration arising out of or relating to this Agreement shall include, by consolidation or joinder or
in any other manner, an additional person or entity not a party to this Agreement, except by
written consent containing a specific reference to this Agreement and signed by the parties and
any other person or entity sought to be joined. The award rendered by the arbitrator shall be final,
and judgments may be entered upon it in accordance with applicable law in any court having
jurisdiction thereof.
Severability
Invalidation of any of the provisions contained in this Agreement, or of the application thereof, to
any person by judgment or court order shall in no way affect any of the other provisions hereof or
the application thereof to any other person, and the same shall remain in full force and effect.
Amendments
This agreement may be amended by, and only by, a written agreement signed by both parties.
January 14, 2008 City Council Minutes 51
Agreement Supersedes
This Agreement shall be in lieu of, and shall supersede, any other agreement between the parties
with respect to the subject matter contained herein, and all plans, special provisions, proposals,
other agreements or contracts not expressly incorporated herein by reference, shall be
superseded and have no further force or effect, and that there are no other obligations or
liabilities with respect to the project to be kept, performed and observed that are not expressly set
forth in this Agreement.
Notices
Whenever it shall be required or permitted by this Agreement that notice or demand be given or
served by either party to or on the other party, such notice or demand shall be delivered
personally or mailed by United States mail to the addresses hereinafter set forth by certified mail.
Such notice or demand shall be deemed timely given when delivered personally o when
deposited in the mail in accordance with the above. The addresses of the parties hereto for such
mail purposes are as follows, until written notice of such addresses have been given:
City of Maplewood
1830 County Road B East
Maplewood, MN 55109
City of Little Canada
515 Little Canada Road
Little Canada, MN 55117
Successors and Assigns
The terms and conditions of this Agreement shall be binding upon and inure to the successors
and assigns of the parties hereto.
In Witness Whereof, the parties hereto have executed this Agreement on the day and year written
below.
In
CITY OF LITTLE CANADA
William Blesener
It's: Mayor
MR
It's:
Date:
Seconded by Councilmember Juenemann.
The motion passed.
CITY OF MAPLEWOOD
M
It's:
M
It's:
Date:
Ayes — All
January 14, 2008 City Council Minutes 52
2. Ponds of Battle Creek Golf Course Lighting Review — 601 Century Avenue South.
a. Senior Planner, Tom Ekstrand presented the report.
b. Kevin Finnley, Ramsey County Park and Recreation Department 2015 Van Dyke
Street answered questions from the city council.
The council took no action on this matter.
3. Myth Sign Review — 3090 Southlawn Drive.
(Item to be heard January 17, 2008.)
4. Conditional Use Permit Review — Beaver Lake Town Houses — Lakewood Drive and
Maryland Avenue.
a. Planner, Ken Roberts presented the report.
b. Public Works Director, Chuck Ahl, answered questions of the council.
C. Bill Schriener, 1098 Beaver Creek Parkway, Maplewood, addressed the council.
d. Paul Schreier, 441 Eldridge Avenue East, Maplewood, addressed the council.
Mr. Schriener said the CUP required a tree plan for this project before any building permits were
to be issued. He said nobody at the city could show him the tree plan. (The planning department
did find the tree plan in the project file) He said the CUP specifically says the outflow from
stormwater from this project will not exceed preconstruction levels. In the engineering report (that
hasn't been mentioned yet tonight) he said he would bet it will show an increase of outflow with
the portion that is already built. That means already there is a violation of the CUP. You cannot
tear out the street or the houses but you can do damage control. This is a violation of the CUP
especially in a shoreline area. If you look at the plan from Beaver Creek Parkway to Lakewood
Drive you are talking about making an area 100% impervious. Almost every square foot of land is
going to be covered by asphalt, concrete or houses. There is no green area left. He heard a
comment tonight about the crosswalk that he brought up to the council in November. He said he
appreciates the crosswalk at Maryland and Lakewood Drive, the problem is from his addition
there is no access from the corner without walking on Lakewood Drive so it is a moot point, the
crosswalk serves no purpose. The bus stop is only accessible from walking on Lakewood Drive.
Looking back at previous meetings from the planning commission November 15, 2000, he
brought up a lack of parking spaces and many of the parking spaces were set at 19 feet long. The
planning commission was smart enough to realize 19 feet long was ridiculous and the
commission made comments that those parking places need to be increased to at least
somewhere between 21 to 25 feet which is more realistic, especially for parallel parking places.
People aren't going to park bumper to bumper therefore; you already reduce the parking places
below an adequate level. As far as the roofline goes, he said he understands the code about
measuring from the midpoint of the roof. The problem is when this building is 40 feet in front of his
house and he looks out his window and front door, the midpoint of the roof means nothing
regarding the impact this will have on his house. The sky, the sun and the tree are blocked out at
the level of the peak of the roof.
Mr. Schriener said there are a lot of comments regarding the multi -phases of the project.
Nowhere in the CUP was anything brought before the planning commission or the council
regarding this being a multi -phased project. It was proposed as a single project and it was
interpreted by some to take place all at once, which it didn't. He said these two and three
bedroom apartments without the anticipation of children living here. Mr. Schriener said because
this project has already paved over, built, 100% concrete, there is absolutely no accommodation
whatsoever for any play area for children that this neighborhood would attract. We are living in a
dream world. He asked if people expect the kids to play in the streets? It defies common sense.
January 14, 2008 City Council Minutes 53
Mr. Schriener said Beaver Lake is designated as a class 5 lake. In other words, its a natural
environmental water way as such, it needs to receive, its required to receive, the highest level of
protection. Mr. Schriener said that goes with the Maplewood City Code 44-1242, it says that
anything built in an area such as this requires 80% screening from 80% of the shoreline of the
lake and in addition, anything in this protected area can have no more than 30% impervious
coverage. When he looks at this area he sees almost 100% impervious coverage. Even if you
take into account the entire park area, if you look at the buildings, the land usage and add in the
use of the homes, he doubts it meets the 30% impervious coverage rule. That's an issue for him
because that is one of the city codes. City Code 44-50 (this code is unknown to the planning
department) says a planned unit development of multi -units requires a 400 foot minimum setback
from the lake. There is no way there is 400 feet of setback here. If you look at City Code 44-75
(this code is unknown to the planning departments there are several violations with this CUP.
Mr. Schriener said the developer, Mr. Dick Schreier has a long history coming before the city
council and asking for CUP's. He has a long history of not meeting the terms and conditions of
those CUP's and permits as is the example of the missing fencing. There also was an issue with
the US Bank building he built and the curbing. He said if he dug further he was sure he would
find plenty more violations. For example, if the neighbor borrows $200 and doesn't pay it back
and a few months later he comes back asking for another $200 and the city gives it to him.
Nobody has been enforcing Mr. Schreier's conditions to make sure he complies with the
conditions. Nobody at the city is watching. Just looking at the overflow alone this matter should
go back before the planning commission because this report shows this is not in compliance with
the CUP.
Mr. Schriener said the engineering reports are contradicting from what he was told this morning
from the engineering department. They said there is an increase in the outflow. This is a direct
violation of the CUP. You try to whitewash this with the 100 year rain event. The CUP doesn't say
it can be variable. The CUP clearly states no increase in outflow. The engineering report will
document an increase in outflow. He said frankly it has to be. If you looked at the high and low
points and where the water flows, there is definitely outflow. The other thing he questioned the
engineering report on is the engineers were convinced the water and the outflow ran south on
Lakewood Drive. The reality is the outflow flows north towards Maryland and that is the point the
road floods out. The city engineering dept wasn't aware of this until 9:00 this morning so he has
serious questions with the engineering reports. The engineers didn't even know the direction the
water flows.
Mr. Schriener said he remembered a comment from a planning commission meeting and referred
to the city bringing up CUP reviews on an annual basis. The reason the city does the CUP is to
make sure the is are dotted and the is are crossed and everything is enforced. Evidently that city
review process works so well there is going to be a battle between Mr. Schreier and the City of
Maplewood regarding who is going to put the fence in. It works so well the city issued 44 building
permits without the tree plan. The system is broke, it doesn't work. The outflow is going to
increase radically with this new building. How do people get to the crosswalk, and to the bus
stop? Where are the children going to play? Where are these people going to park their cars
unless you plan to allow cars to be parked on one side of Lakewood Drive? He said he had a
couple of engineers review the project plans. Those who reviewed the plans had real interesting
comments. They said this was one of the worst planned developments they had ever seen in
their lives. Quite frankly the city is seeing the effect of that already. Unless the city starts damage
control everyone is going to be dealing with a lot more and potential cost to the tax payers as this
goes on.
January 14, 2008 City Council Minutes 54
Mr. Schriener said in the CUP it relates to signage to keep kids and people out of the park area
because it is a wildlife habitat protected area and people are not supposed to be in that park area
except on the walking paths. It's supposed to be signed appropriately which is part of the CUP
but it isn't signed appropriately. That area is a low land wetland and animal habitat and is not
designed for kids to be playing in. He showed an area on the map where all the runoff goes onto
the private property of Rosewood Estates and onto their private drive. In heavy rains, it floods out
their driveways and causes washouts. He sees potential liability for the Beaver Lake
Development and for the association because we are sending the water runoff onto someone
else's private property. Mr. Schriener said first the drainage crosses their property, mud washes
onto their property, tree branches have been washed onto their property and at times you didn't
dare go out on that road in a heavy rain because of all the water that has been washing onto their
property. At some point and time there is a potential for litigation. Councilmember Rossbach
mentioned the potential of Mr. Schreier pursuing litigation on this. He said he completely
understands that. He wondered if all the homeowners pursued litigation to go after the decreased
home values that are inevitable especially when many of people went to the city to find out what
was planned for that particularly area prior to buying their homes. He said we were told this is
what was approved, nothing had been approved yet for that area and if there was a proposal
there would be public hearings before approval of anything. He isn't the only person that went to
the city and was told that. Potentially the city is looking at some lawsuits that could be more
expensive than Mr. Schreiers.
Mr. Paul Schreier, 441 Eldridge Avenue East, Maplewood, addressed the council. He said they
are going to meet the requirements of the CUP and fix the fence and the trees that are down. He
said you guys sell yourself short, he doesn't know how they could do anything else after the
motion was made to approve the CUP review in June 2007. He said he wasn't sure why a motion
was necessary if they already had approval for one year. (City Attorney Kantrud answered that
question.)
Councilmember Nephew moved to approve the extension review the conditional use permit for
the planned unit development for the Beaver Lake Town Houses at Maryland Avenue and
Lakewood Drive again in one year or sooner if the owner proposes a major change to the site or
to the project plans. Secondly, to direct staff to make sure the items that have been brought
up in this discussion that warrant attention from the developer such as the grade issues,
the tree issues and the fence issue. The city should ensure that those concerns be taken
care of by the beginning of July 2008. This CUP should be brought back six months from
now to check on the status of these deficient items and to ensure the concerns have been
taken care of.
Councilmember Rossbach offered a friendly amendment to direct staff to make sure the items
that have been brought up in this discussion that warrant attention from the developer such as
the grade issues, the tree issues and the fence issue. The city should ensure that those concerns
be taken care of by the beginning of July 2008. This CUP should be brought back six months
from now to check on the status of these deficient items and to ensure the concerns have been
taken care of.
Councilmember Nephew agreed with the friendly amendment.
Seconded by Councilmember Rossbach. Ayes — Councilmembers Juenemann,
Nephew & Rossbach
Nays — Mayor Longrie,
Councilmember Hjelle
The motion passed.
January 14, 2008 City Council Minutes 55
Councilmember Nephew moved to extend the meeting to complete agenda items L1 & L2.
Seconded by Mayor Longrie. Ayes — Mayor Longrie,
Councilmembers Hjelle,
Nephew, Rossbach
Nom— Councilmember Juenemann
The motion passed.
5. Reconsider item F3 from December 10, 2007, City Council Meeting; Sign Code
Amendment, second reading — Councilmember Will Rossbach — No Report.
(This item will be heard January 17, 2008)
6. Reconsider item F1 from December 27, 2007, Special City Council Meeting;
Conditional Use Permit Billboard Height Increase — Council Member Will Rossbach.
No Report.
(This item will be heard January 17, 2008)
7. Anonymous Voice Mail from Pierre Regnier — Councilmember Eric Hjelle.
(This item will be heard January 17, 2008)
8. Suspension of Marlene Palkovich as Police Civil Service Commissioner —
Councilmember Eric Hjelle. No Report.
(This item was removed from the agenda.)
L. NEW BUSINESS
1. Conditional Use Permit Revision — Schmelz Countryside Motors — 1180 — 1200
Highway 36 East.
a. Senior Planner, Tom Ekstrand presented the report.
b. Robert Martin, Planning Commissioner, 2329 Londin Lane, Maplewood addressed
the council and gave the planning commission report.
C. John Schmelz, Owner of Schmelz Countryside Motors, 1180 Highway 36 East,
Maplewood addressed the council.
Councilmember Hjelle moved to adopt the resolution approving a Conditional Use Permit
Revision for the expansion of an auto dealership with sales and service Schmelz
Countryside onto the property at 1200 Highway 36 (currently the Ember's Restaurant
property). This revision incorporates the resolutions previously applied to the applicant's
current site and his future use of the Ember's Restaurant property. This approval is based
on the findinas reauired by code and subiect to the followina conditions (additions are
underlined and deletions are crossed out):
January 14, 2008 City Council Minutes 56
CONDITIONAL USE PERMIT RESOLUTION 08-01-009
WHEREAS, John Schmelz, of Countryside Volkswagen, Inc., applied for a conditional use
permit revision to expand his automobile sales and service business onto the Ember's Restaurant
site adjacent to his property.
WHEREAS, this permit applies to the Countryside Volkswagen, Inc., Automobile
Dealership at 1180 Highway 36 East and to the expanded site located at 1200 Highway 36. The
legal description is:
Existing Dealership Legal Description: The west 105.00 feet of the east 135.00 feet of the
north 30.00 feet of Block 10, Clifton Addition and vacated street accruing.
The east 240.00 feet of Block 15, Clifton Addition, except the south 30.00 feet lying west
of the east 135.00 feet thereof. Together with that part of vacated Cope Avenue accruing.
The east 240.00 feet of that part of Block 16, Clifton Addition, lying southerly of State
Trunk Highway Number 36.
The west 110.00 feet of that part of Block 17, Clifton Addition, lying southerly of State
Trunk Highway Number 36.
The west 110.00 feet of Block 14, Clifton Addition, together with that part of vacated Cope
Avenue accruing.
The west 225.00 feet of east 255.00 feet of Block 10, Clifton Addition, together with that
part of vacated Duluth Street accruing, except the south 174.00 feet and except the north
30.00 feet thereof.
That part of east 114 feet of the west 400 feet of Block 17, lying south of the southerly
right-of-way line of Trunk Highway 36 and the east 114 feet of the west 400 feet of Block
14, lying north of the south 128 feet; and the east 290 feet of the west 400 feet of the
north 98 feet of the south 128 feet of Block 14, all in Clifton Addition, Ramsey County,
Minnesota, subject to roads.
Expanded Site Located at 1200 Highway 36, East: Ex E 114 Ft and Ex S 128 Ft; The E
290 Ft of W 400 Ft of Blks 14 & 17 Lying S of Hwy 36.
(Property I.D. No 09-29-22-41-0027)
WHEREAS, the history of this conditional use permit is as follows:
On December 4, 2007, the planning commission held a public hearing to review
this request. City staff published a notice in the paper and sent notices to the
surrounding property owners as required by law. The planning commission gave
everyone at the hearing a chance to speak and present written statements. The
planning commission also considered reports and recommendations of the city
staff.
2. The city council reviewed this proposal and considered the planning commission's
recommendation on January 14, 2008. The council also considered reports and
recommendations of the city staff and those in attendance.
NOW, THEREFORE, BE IT RESOLVED that the city council passed the above-
described conditional use permit revision because:
January 14, 2008 City Council Minutes 57
The use would be located, designed, maintained, constructed and operated to be
in conformity with the City's Comprehensive Plan and Code of Ordinances.
2. The use would not change the existing or planned character of the surrounding
area.
3. The use would not depreciate property values.
4. The use would not involve any activity, process, materials, equipment or methods
of operation that would be dangerous, hazardous, detrimental, disturbing or cause
a nuisance to any person or property, because of excessive noise, glare, smoke,
dust, odor, fumes, water or air pollution, drainage, water run-off, vibration, general
unsightliness, electrical interference or other nuisances.
5. The use would generate only minimal vehicular traffic on local streets and would
not create traffic congestion or unsafe access on existing or proposed streets.
6. The use would be served by adequate public facilities and services, including
streets, police and fire protection, drainage structures, water and sewer systems,
schools and parks.
7. The use would not create excessive additional costs for public facilities or services.
8. The use would maximize the preservation of and incorporate the site's natural and
scenic features into the development design.
9. The use would cause minimal adverse environmental effects.
Approval is subject to compliance with the following conditions (additions are underlined and
deletions are crossed out):
Previously Required Countryside Volkswagen Conditions
1. All construction shall follow the site plan approved by the city. The director of communit
development city planning staff may approve minor changes.
2. The construction of the proposed addition to the Saab building must be started within one
year of the city council approval or the approval for this addition shall end. The city council
may extend this deadline for one year.
3. There shall be no automobile access, except emergency vehicles, to or from Duluth Street.
4. Automobiles shall only be parked on designated paved or engineered porous surfaces.
5. The applicant will enter into a formal easement agreement with St. Paul Regional Water
Services and the City of Maplewood which satisfies both agencies' conditions for access to
the public utility easements for water main (SPRWS) and sanitary storm sewer (City of
Maplewood).
January 14, 2008 City Council Minutes 58
6. The city council shall review this permit in one year.
Conditions Applicable to the Countryside Volkswagen, but Specific to the 1200 Highway
36 Expanded Site (formerly Ember's Restaurant)
7. No building permit shall be issued for the auto dealership expansion onto 1200 Highway 36
until the applicant receives city approval of all required plans.
8. This conditional use permit shall be reviewed by the city council in one year as required by
ordinance. The city council may grant extensions of this permit for the commencement of this
project. Normally one one-year extension is permitted by ordinance. Since the applicant has
no specific design plans prepared at this time, the city council may grant up to three one-year
extensions, for a total of four years of permit approval, to allow the applicant time to present
plans for city approval. If the city has not issued a building permit, or construction has not
substantially started by that time, this permit shall expire.
9. The project plans shall be designed to be sensitive to nearby residential properties in regards
to aesthetics, lighting and noise.
10. This permit allows the use of this site for a new or expanded automobile dealership with sales
and motor -vehicle service with outdoor motor -vehicle sales.
The Maplewood City Council approved this resolution on January 14, 2008.
Seconded by Mayor Longrie. Ayes — All
The motion passed.
2. Annual City Council Appointments.
a. City Clerk, Citizens Services Manager, Karen Guilfoile presented the report.
Chanaes to the aaaointments are underlined and bolded. deletions are stricken:
Appointment
2007 Appointments
2008 Appointments
City Attorney
H. Alan Kantrud
Appointment made per RFP
Knaack & Kantrud
expires on September 11, 2008
Prosecuting Attorney
H. Alan Kantrud
Appointment made per RFP
Knaack & Kantrud
expires on September 11, 2008
Human Resources Attorney
Chuck Bethel
Appointment made per RFP
Bethel & Associates
expires on September 11, 2008
Acting Mayor*
Rebecca Cave
Erik Hielle
*Rotation of acting mayors:
2005 Will Rossbach, 2006 Kathleen Juenemann, and 2007 Rebecca Cave
Data Gemplianee Practices Officers:
Responsible Authority Karen Guilfoile (same as 2007)
fA�-Data Compliance Personnel Officer Terry Rameaux (same as 2007)
"Data Compliance Law Enforcement Officer David Thomalla (same as 2007)
Official Newspaper Maplewood Review Maplewood Review
Pioneer Press (Alternate) Pioneer Press (Alternate)
January 14, 2008 City Council Minutes 59
Community Design Review Board None in 2007 John Nephew
(2"d & 4th Tuesday 7:00 p.m.) Tom Ekstrand (Staff Representative)
Environment & Natural None in 2007 Kathleen Juenemann
Resources Commission DuWayne Konewko (Staff Rep)
(1St Wednesday of the Month)
Historical Preservation None in 2007 Diana Longrie
Commission Pauline Staples (Staff Rep)
(3'd Thursday at 7:00 p.m.)
Maplewood Community
Outreach Committee Karen Guilfoile Diana Lonarie
Parks & Recreation
None in 2007
Will Rossbach
Commission
DuWayne Konewko (CIP & Maintenance)
(3'd Wednesday at 7:00 p.m.)
Doug Taubman (Recreation Programs)
Planning. Commission
None in 2007
John Nephew
(1St & 3' Tuesdays at 7:00 p.m.)
Ken Roberts (Staff Representative)
Police Civil Service Commission
Erik Hjelle
Kathleen Juenemann
(Meets as Needed)
Terrie Rameaux
Terrie Rameaux
800 MHz Representative
Kathleen Juenemann
Kathleen Juenemann
Will Rossbach (Alternate)
Will Rossbach (Alternate)
Fire Relief Association
Diana Longrie
Diana Longrie
Relief By -Laws require Mayor
Robert Mittet (Staff Representative)
Robert Mittet (Staff Representative)
to be member of the Board
Housing & Redevelopment
None in 2007
Diana Longrie
Authority
Tom Ekstrand (Staff Representative)
(2"d Wednesday at 7:00 p.m.)
Joint Ice Arena Board
Erik Hjelle
Erik Hjelle
Rebecca Cave
Diana Longrie
Municipal Legislative Comm.
Diana Longrie
Diana Longrie
(Monthly, Wed. 11:30 —1:00 p.m.)
Rebecca Cave (Alternate)
Kathleen Juenemann (Alternate)
N.E.S.T
Will Rossbach
Will Rossbach
(First Tuesday @ 7:30 p.m.)
Diana Longrie
Diana Longrie
The Partnership
Erik Hjelle
John Nephew
Mike Shortreed (Staff Representative)
Mike Shortreed (Staff Representative)
Ramsey County League
Kathleen Juenemann
Will Rossbach
of Local Governments
Will Rossbach (Alternate)
John Nephew (Alternate)
Ramsey/Washington
Kim Facile
Kim Facile
Suburban Cable Commission
Rebecca Cave (Alternate)
John Nephew (Alternate)
Rush Line Corridor
Will Rossbach
Will Rossbach
Diana Longrie
Diana Longrie
Chuck AN (Staff Representative)
Chuck AN (Staff Representative)
Suburban Area Chamber
Diana Longrie
Diana Longrie
of Commerce
Suburban Rate Authority Diana Longrie Diana Longrie
(First month of quarter)
St. Paul Water Utility Will Rossbach Will Rossbach
Board of Commissioners (Elected by another city)
January 14, 2008 City Council Minutes 60
AiirJitnr rnnfnrf
Was No Appointment in 2007 John Nephew
Diana Longrie (Alternate)
Councilmember Hjelle moved to approve the Annual City Council Appointments.
Seconded by Councilmember Nephew. Ayes - All
The motion passed.
3. Annual Review of the Rules and Procedures for City Council and Council Meetings
Manual.
(This item will be heard January 17, 2008)
4. Council Member Rossbach's involvement in Sherrie Le legal action against
Maplewood. Report by Councilmember Eric Hjelle.
(Removed from the Agenda at the request of Councilmember Hjelle.)
5. Consideration of process options available for replacement of a City Manager —
Councilmember Rossbach — No Report.
(This item was heard after F1. Public Hearings.)
M. COUNCIL PRESENTATIONS
1. Joe Plant/Greg Copeland
2. Fire @ Wipers Recycling
3. Orientation
4. Council/Staff Retreat
5. South Leg Meeting
6. Ramsey County League of Government
(These items will be heard January 17, 2008)
N. ADMINSTRATIVE PRESENTATIONS
1. Resolution of Issues with Sale of Dispatch Equipment, Bob Mittet, Finance and
Administration Manager.
(This item to be heard January 17, 2008)
O. ADJOURNMENT
Mayor Longrie adjourned the meeting at 12:22 a.m.
January 14, 2008 City Council Minutes 61
t449
'�t
January 14, 2008 Maplewood City Council
Regarding: The Village on Woodlynn
2122 Woodlynn Avenue
Maplewood, MN
Good evening Mayor, and Council Members. My name is Peter Rekstad. I live at 2380
Legion Lane in Lake Elmo. I am bringing an issue to you this evening on behalf of the
Village on Woodlynn located at 2122 Woodlynn Avenue in Maplewood. The Village was
originally named the Cottages of Maplewood. This facility is a senior housing project for low
and moderate income residents. My parents, Howard and Carla Rekstad, who are here this
evening, developed and have managed this property on behalf of the Cottages of Maplewood
Limited Partnership for nearly 20 years.
At the outset of this project, in 1988, the city approved the project and provided $275,000 for
site improvements under an agreement that was funded with Tax Increment Financing. The
Agreement with the City required a guarantee of captured tax increment of $75,670 per year.
The rents on the majority of units are controlled by HUD. Anticipated 5% rent increases were
not allowed by the code. The maximum increase allowed was 3% and in some years, HUD
did not allow any rent increases. In addition, there were a large number of senior housing
units added in the city and surrounding area shortly after the completion of the Cottages of
Maplewood that further restricted rent increases for several years. In short, the financial
conditions that were anticipated when the agreement was reached with the City were not
realized.
Faced with a serious cash flow shortage, Howard Rekstad requested Ramsey County change
the Project to a 4D classification as a Senior Housing project. This was a tax treatment to
which the Project was entitled as a regulated Senior Housing facility. This was approved by
the county, but resulted in the tax increment payments generating less taxes than were
required by the agreement with the City, but still enough tax to pay off the bonds attributable
to the project. In 1992, the city demanded payment of the difference under the Development
Agreement which the project did not have the cash flow to pay. Howard Rekstad requested
and received additional capital from the investors in the project to keep it solvent, and at the
same time, requested that the city amend the Development Agreement so that the minimum
guaranteed tax increment would be $58,230. This proposed amount would have been more
than enough to pay off the bond issued with respect to the Project by 2003.
It is clear that annual payments of $58,230.00 greatly exceeded the amount required to pay
back the $275,000 provided by the City over the 12 year term of the bonds. It appears,
however, the city had allocated excess increment from this project to fund bond payments for
the Community Center as spelled out in an October 1992 letter from Mary Ippel, bond
counsel to Dan Faust, city Finance Manager and that both the amount of the increment
guaranteed and the number of years that Howard Rekstad was required to guaranty was not
determined by what was necessary to insure that the subsidy provided by the City was repaid,
but to make sure that the City received sufficient Tax Increments to pay the debt service on
both the Bonds issued for the Cottages of Maplewood Limited Partnership Project and a large
percentage of the Bonds issued for construction of the Community Center. Bond Counsel
indicated that the purpose of the Agreement regarding tax increment was to ensure that they
would receive the projected revenues for the Community Center and that they would remain
at the level expected under the Development Agreement through 2009 to allow Tax
Increments generated by the Project to be used for other eligible expenses after the bonds
were paid in full in 2003. In light of the plans to use a substantial portion of the tax increment
for the Community Center and other purposes, the city denied the request for a lower
guarantee and instead approved an amendment to the Development Agreement where tax
shortfalls were deferred with interest.
It appears likely that in deferring the payment of the excess increment the City and their
counsel felt that rising values would increase the increment from the Project and that the taxes
generated in the ordinary course of events would pay the shortfalls down the road and pose no
real difficulty to the Rekstads or the Project. Unfortunately, the value of the property did not
increase as fast as expected because of rent controls and market competition.
The often discussed issue of the level of taxation on commercial and rental property taxes was
addressed during the Ventura administration when the property tax structure was overhauled
and property taxes on such property significantly reduced. Instead of taking care of itself
through future tax increases, the tax increment shortfall guaranteed by the Rekstads and the
Project has accumulated to over $400,000 in principal and interest at this time.
While the tax revenues turned out to be less than anticipated in the years following the
construction of the Project, so has the cost of the debt service. In the 1990s, the city refunded
the bonds and the interest rate on both the Bonds for the Project and the Community Center
were less than anticipated. It is our understanding the bonds for the Project as well as the
Community Center have been paid off without any additional assessment of tax to the
residents of Maplewood.
The Rekstads understood that the guarantee was originally placed in the development
agreement to protect the city and assure that the money that was loaned to the Cottages would
be repaid and the city would not be left paying for the bonds. When the Agreement was
amended a couple of years later it was their understanding that tax revenues from the Project
could be anticipated to cover the obligations in future years. They were shocked when the
City told them that they owed an additional $410,000.00.
Since the Project has generated over $921,500 of tax increments and the bonds have been paid
off, we are asking you to waive the additional charges. The intent of the agreement was to
protect the city from a shortfall which would require that Maplewood taxpayers foot the bill
for monies that the Project agreed to pay when the $275,000 TIF subsidy was agreed to. The
uncertain future is now past and we know that there is no danger of this shortfall.
The project has been a financial success for the city and contributed to the welfare of senior
citizens within the community and contributed to the financing of the Community Center.
Please research this matter to verify what I have just told you. We would then ask you to
waive the additional payment in accordance with the original purpose of the agreement.
Thank you for your consideration of this matter.
Respectfully Submitted
c 7/
Peter Rekstad on behalf of
The Cottages of Maplewood Limited Partnership
2380 Legion Lane
Lake Elmo, MN 55042
952-210-5637
The Cottage of Maplewood Limited Partnership
Howard and Carla Rekstad, General Partners
4925 Hodgson Connection
Shoreview, MN 55126
651-483-9788