HomeMy WebLinkAbout2019-10-15 CC Agenda Packet
216 4th Street N, Stillwater, MN 55082
651-430-8800
www.ci.stillwater.mn.us
REVISED AGENDA
CITY COUNCIL MEETING
October 15, 2019
REGULAR MEETING 7:00 P.M.
I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
1. Swearing in Police Officer Justin Dowley
2. Acknowledging promotion of Daniel Young to Sergeant
V. OPEN FORUM ‐ the open forum is a portion of the council meeting to address council on subjects which are not a part
of the meeting agenda. the council may take action or reply at the time of the statement or may give direction to staff
regarding investigation of the concerns expressed. out of respect for others in attendance, please limit your comments to
5 minutes or less.
VI. STAFF REPORTS
3. Police Chief
4. Fire Chief
5. City Clerk
6. Community Development Director
7. Public Works Director
8. Finance Director
9. City Attorney
10. City Administrator
VII. CONSENT AGENDA ‐ all items listed under the consent agenda are considered to be routine by the city council and will
be enacted by one motion. There will be no separate discussion on these items unless a council member or citizen so
requests, in which event, the items will be removed from the consent agenda and considered separately.
11. October 1, 2019 regular, recessed and closed session meeting minutes
12. Payment of Bills
13. St Croix Boat and Packet Railroad Lease Renewal – Resolution
14. Board of Water Commissions 2018 Audit
15. The Loft at Studio J LLC Sunday Sales Liquor License – Resolution
16. Ziggy’s West On-Sale, Sunday and 2 AM Liquor License – Resolution
17. CPC Case 2019-49 Zoning Map Amendment to rezone certain properties to Rural Residential zoning
district – Ordinance 2nd Reading
18. Board of Water Commission Adoption of Assessments – Resolution
19. U.S. Bench Corporation License Renewal
20. Discontinue CGI Commucations Services
21. Hardcourt Rehabilitation Project Final Payment – Resolution
22. Sanitary Sewer Adjustments
23. Crestwood Terrace Purchase Agreement
VIII. PUBLIC HEARINGS ‐ out of respect for others in attendance, please limit your comments to 10 minutes or less.
24. CSAH 5 Street Improvement Project Phase Two, Project 2019-09 to consider street and sidewalk
improvements on North Owens Street from Olive Street W to Sycamore St. Notice was published in the
Stillwater Gazette on October 4 and 11, 2019 and mailed to affected property owners – Resolution
IX. UNFINISHED BUSINESS
X. NEW BUSINESS
25. Problem Property Designation Appeal on 918 5th Ave S – Resolution
26. Order Feasibility Study for 2020 Street Improvement Project – Resolution
27. Authorize Bids for St. Croix River Riverbank Stabilization and Riverwalk Project – Resolution
28. Sanitary Sewer Rate Increase – Resolution
29. Solar Garden Agreement for Sunrise CSG-1 Site – Resolution
XI. COUNCIL REQUEST ITEMS
XII. CLOSED SESSION
30. Pursuant to Minn. Stat. §13D.05 subd. 3(b) to discuss attorney-client privileged communication
regarding 121 Chestnut Street East
XIII. ADJOURNMENT
CSAH 5 IMPROVEMENTS
PHASE 2
PUBLIC HEARING
STILLWATER CITY COUNCIL
OCTOBER 15 , 2019
CSAH 5 IMPROVEMENTS PHASE 2
Washington County has planned road and pedestrian
improvements on County Road 5
Phase 1 Stillwater Boulevard and Olive Street (Croixwood
Boulevard to Pine tree Trail) completed in 2018
2020 Phase 2-Olive and Owens Street-Pine Tree Trail to
Sycamore Street.
2022 Phase 3 –Sycamore Street to TH 96 includes pedestrian
connection to Browns Creek Trail
CSAH 5 STREET IMPROVEMENTS
PHASE 2
Project would consist of:
Mill and overlay-Entire length of project
Reconstruct concrete curbs and sidewalks concrete-Owens ( Olive
to Sycamore)
Narrow the street Owens (Mckusick to Sycamore)
Olive to Mckusick ( 44’ to 42’)
Mckusick to Sycamore ( 44’ to 38’)
New sidewalk -east Side Owens ( Wilkins to Sycamore)
Relocate storm structures and intersections
ADA pedestrian ramps at all intersections
Relocate hydrants at ramps
CSAH 5 STREET IMPROVEMENTS
PHASE 2
CSAH 5 STREET IMPROVEMENT
PHASE 2
Project Costs
Total Estimated Project Cost $2,900,000.00
Per Washington County Cost Participation Policy, City of Stillwater is
responsible for 50% of new sidewalk and curb and gutter and a
percentage of the traffic control, erosion control and mobilization100%
for all water main and sanitary sewer work.
No City Charge for Mill and Overlay
Estimated construction cost -$322,586.57
Estimate total cost -$446,854.57
CSAH 5 STREET IMPROVEMENT
PHASE 2
Funding
•Propose to assess cost of curb and sidewalks
costs($206,773.13) to the property owners at
70%(Owens Street Only).
•Remaining costs to be paid for by the Water Board and
the City using Municipal State Aid funds ($ 240,081.44).
Water Board $50,111.14
City $189,970.30
CSAH 5 STREET IMPROVEMENT
PHASE 2
Funding
Assess per unit for single family homes( 108 homes)
Corner lot -0.5 unit, interior lot –1 unit
Assess frontage length for commercial, City, and school property
Unit Assessment -interior $1806.22 per unit
corner -$903.11 per unit
Front foot assessment $ 15.72/ lf
CSAH 5 STREET IMPROVEMENT
PHASE 2
CSAH 5 STREET IMPROVEMENT
PHASE 2
Assessments $141,298.51
Water Board $50,111.14
City $255,444.92
Total Project $ 446,854.57
PAYMENT INFORMATION
•Paid lump sum ( no interest paid)
•Added to property tax over a five year period @ 4.00%(Estimated)
EXAMPLE
For an assessment of $1800, the payment
1st year $360 (principal) + $72.00 (interest) = $432
2nd year $360 (principal) + $57.6 (interest) = $417.6
5th year $360 (principal) + $14.40(interest) = $374.4
CSAH 5 STREET IMPROVEMENT
PHASE 2
PROPOSED SCHEDULE (Preliminary)
Feasibility Study -September 17, 2019
Public Hearing October 15, 2019
Approve Plans December 2019
Award Bid January 2020
Construction May –October 2020
Assessment Hearing October 2020
CSAH 5 STREET
IMPROVEMENT PHASE 2
PROJECT IS ENGINEERING AND FINANCIALLY
FEASIBLE
RECOMMEND CONDUCT PUBLIC HEARING,
ORDER IMPROVEMENT AND PREPARATION OF
PLANS
CSAH 5 IMPROVEMENTS
PHASE 2
PUBLIC HEARING
STILLWATER CITY COUNCIL
OCTOBER 15 , 2019
CSAH 5 IMPROVEMENTS PHASE 2
Washington County has planned road and pedestrian
improvements on County Road 5
Phase 1 Stillwater Boulevard and Olive Street (Croixwood
Boulevard to Pine tree Trail) completed in 2018
2020 Phase 2-Olive and Owens Street-Pine Tree Trail to
Sycamore Street.
2022 Phase 3 –Sycamore Street to TH 96 includes pedestrian
connection to Browns Creek Trail
CSAH 5 STREET IMPROVEMENTS
PHASE 2
Project would consist of:
Mill and overlay-Entire length of project
Reconstruct concrete curbs and sidewalks concrete-Owens ( Olive
to Sycamore)
Narrow the street Owens (Mckusick to Sycamore)
Olive to Mckusick ( 44’ to 42’)
Mckusick to Sycamore ( 44’ to 38’)
New sidewalk -east Side Owens ( Wilkins to Sycamore)
Relocate storm structures and intersections
ADA pedestrian ramps at all intersections
Relocate hydrants at ramps
CSAH 5 STREET IMPROVEMENTS
PHASE 2
CSAH 5 STREET IMPROVEMENT
PHASE 2
Project Costs
Total Estimated Project Cost $2,900,000.00
Per Washington County Cost Participation Policy, City of Stillwater is
responsible for 50% of new sidewalk and curb and gutter and a
percentage of the traffic control, erosion control and mobilization100%
for all water main and sanitary sewer work.
No City Charge for Mill and Overlay
Estimated construction cost -$322,586.57
Estimate total cost -$446,854.57
CSAH 5 STREET IMPROVEMENT
PHASE 2
Funding
•Propose to assess cost of curb and sidewalks
costs($206,773.13) to the property owners at
70%(Owens Street Only).
•Remaining costs to be paid for by the Water Board and
the City using Municipal State Aid funds ($ 240,081.44).
Water Board $50,111.14
City $189,970.30
CSAH 5 STREET IMPROVEMENT
PHASE 2
Funding
Assess per unit for single family homes( 108 homes)
Corner lot -0.5 unit, interior lot –1 unit
Assess frontage length for commercial, City, and school property
Unit Assessment -interior $1806.22 per unit
corner -$903.11 per unit
Front foot assessment $ 15.72/ lf
CSAH 5 STREET IMPROVEMENT
PHASE 2
CSAH 5 STREET IMPROVEMENT
PHASE 2
Assessments $141,298.51
Water Board $50,111.14
City $255,444.92
Total Project $ 446,854.57
PAYMENT INFORMATION
•Paid lump sum ( no interest paid)
•Added to property tax over a five year period @ 4.00%(Estimated)
EXAMPLE
For an assessment of $1800, the payment
1st year $360 (principal) + $72.00 (interest) = $432
2nd year $360 (principal) + $57.6 (interest) = $417.6
5th year $360 (principal) + $14.40(interest) = $374.4
CSAH 5 STREET IMPROVEMENT
PHASE 2
PROPOSED SCHEDULE (Preliminary)
Feasibility Study -September 17, 2019
Public Hearing October 15, 2019
Approve Plans December 2019
Award Bid January 2020
Construction May –October 2020
Assessment Hearing October 2020
CSAH 5 STREET
IMPROVEMENT PHASE 2
PROJECT IS ENGINEERING AND FINANCIALLY
FEASIBLE
RECOMMEND CONDUCT PUBLIC HEARING,
ORDER IMPROVEMENT AND PREPARATION OF
PLANS
Page 1
LIST OF BILLS
Accela Inc Monthly UB web payments 359.71
Ace Hardware Supplies 9.18
Advance Auto Parts Supplies 133.91
Advanced Sportswear Uniforms with logo 1,128.00
American Test Center Safety inspection 1,335.00
Aspen Mills Uniforms 1,912.22
Baker Tilly Municipal Advisors Bond issuance fees 20,597.00
Bartlett Melissa Refund Park Fee 160.00
Blue Tarp Financial Tools 201.78
Board of Water Commissioners WAC Charges 3,564.00
Brochman Blacktopping Co.2019 Court Rehab 59,686.17
Buberl Black Dirt Inc.Black dirt 75.00
Bureau of Crim. Apprehension Terminal access charge 270.00
CDW Government Inc.Supplies 143.27
Centro Print Solutions 1099s and w2s 214.58
Century Link Telephones 485.43
Century Power Equipment Equipment repair supplies 148.38
Cintas Corporation Mat & uniform cleaning service 520.98
Cities Digital Solutions LaserFiche 13,613.00
City of St. Paul Training 169.00
Clog Un-Boggler Inc.Unclog stool 285.00
Comcast Internet & Voice 290.07
Community Thread Contribution 4,000.00
Crysteel Truck Equip Complete plow assembly 14,112.86
Cub Foods Pancake breakfast & open house 485.12
Custom Fire Apparatus Fire Truck 557,300.00
Dalco Janitorial supplies 105.31
DCA Title Title searches 2,400.00
Dell Marketing L.P.Computers 14,834.42
Door Service Company Door repair 4,953.00
ECM Publishers Publications 147.25
Ecolab Pest Ants 462.28
Emergency Response Solutions Equipment repair 12.07
Enterprise FM Trust Lease vehicles 9,325.42
Fastenal Company Supplies 34.38
Flexible Pipe Tool Co.Equipment repair charges 949.60
Galls LLC Uniform - Gannaway 196.42
Gopher State One Call Inc.Locates 418.50
GovHR Public Work Review 10,275.00
Grainger Supplies 750.24
Granicus Inc Website upgrade 14,280.00
Guardian Supply Uniform supplies - Olson 129.98
Hardwood Creek Lumber Inc.Materials 154.30
Holiday Companies Vehicle washes 205.00
Hotsy Equipment of Minnesota Repair charges 1,269.86
Page 2
Hudson Fire Department Zoll X Series Monitor 4,000.00
IIMC Membership 170.00
Jefferson Fire and Safety Inc.Equipment 2,856.25
Kelly & Lemmons PA Prosecution 8,333.00
Kwik Trip Inc Fuel 16.75
LeVander Gillen Miller PA Professional services 9,348.44
Lincoln National Life Insurance Co COBRA Life Insurance 18.00
Loffler Companies IT Professional 870.00
MacQueen Equipment Inc.Equipment repair supplies 472.96
MailFinance Inc Folding Machine Lease 1,174.05
Mansfield Oil Company Fuel 4,881.25
Marshall Electric Company Electrical repair 2,807.00
Menards Supplies 1,081.39
Metropolitan Council Wastewater Charge & SAC 160,770.74
Miller Excavating Projects 525,101.76
MN Dept of Labor and Industry Quarterly Surcharge 8,032.27
Moody's Investors Service Rating agency fees 12,500.00
MP Nexlevel LLC Locating 1,031.25
Municode Code pages 366.60
NAPA Auto Parts Supplies 6.55
Northern Bedrock 1053 S Main Archaeological Dist 5,000.00
Nutritional Weight & Wellness Wellness seminars 900.00
Office Depot Supplies 131.36
OnSite Sanitation Portable Restroom 1,504.00
Oxygen Service Company Inc.Medical oxygen 239.20
Quill Corporation Supplies 96.37
Rehn Code Consulting Services 114 Brick St 24,067.00
Robole Donna Reimburse for fitness room expenses 66.37
Roettger Welding Inc.Handi-cap ramp guard rail 7,500.00
Safe Assure Consultants Safety training 4,304.26
Safe Fast Inc Safety uniforms 874.26
Savage Anthony Refund inspection fee 150.00
SavATree Emerald Ash Borer injections 895.00
SHI International Corp Software 40,378.00
SiteOne Landscape Supply Supplies 139.71
Stillwater Glass Inc.Arched windows for council chambers 3,445.35
Stillwater Rotary Club Membership 380.00
Stillwater Towing Towing service 150.00
SW/WC Service Cooperatives Retiree Health Insurance 78,057.09
T.A. Schifsky and Sons Asphalt 1,614.03
Tait Graham E Reimburse for fuel for trip to APA Conference 20.06
Toll Gas and Welding Supply Cylinders 43.92
Tonrey Dana Refund Ramp vouchers 189.00
Thueson Matthew Reimburse for iPad 599.00
Turnblad Bill Reimburse for MNAPA Conference expenses 350.96
Universal Truck Equipment Equipment 42,398.52
US Bank Paying agent fees 1,350.00
Page 3
Verizon Wireless Wireless Service 3,279.04
Veterans Memorial Super Valu Parking 4,347.00
Voyant Communications Phone 554.01
Walmart Community Supplies 118.48
Wash. Cty Historical Society Contribution 1,250.00
Washington Conservation Distr Shared Educator 675.00
Waste Management of WI-MN Trash units 48,920.00
Water Works Plumbing & Heating LLC Test RPZs 2,100.00
Youth Service Bureau Contribution 2,625.00
Zoll Medical Corp RESQCPR system 1,400.47
REC CENTER
Ace Hardware Supplies 411.16
AE2S Construction (EIM)Dome Project 18,335.00
Arrow Sports Group Concession supplies 182.49
AT&T Mobility Cell phone 89.72
Canteen Refreshment Services Coffee & supplies for concessions 491.80
Cintas Corporation Mat cleaning service 154.50
Comcast Internet 109.85
Ebert Construction Dome Project 306,104.18
Menards Supplies 106.03
Metro Sheet Metal Inc Dome Project 17,033.50
Miller Excavating Dome Project 43,281.24
Pepsi Beverages Company Beverages for concessions 259.88
R&R Specialties Inc.Equipment repair supplies 278.60
Riedell Shoes Inc.Skates 643.44
St. Croix Boat and Packet Co.Arena billing 42,468.61
Twin Cities Dots & Pop Treats for concessions 802.56
LIBRARY
16 Wins Website Updates 320.00
Ace Hardware Janitorial Supplies 143.58
Brodart Co Materials 3,588.73
Cintas Corporation Towels & Rugs 72.24
Comcast Internet/WiFi 188.06
Culligan of Stillwater Water 54.45
Friends of the Stillwater Public Library Reimbursement - September Sales 311.50
Grainger Building Repair Supplies 68.75
Jacobsen Aurora Materials 16.27
Master Mechanical Inc.Leak Inspection 1,123.14
Menards Janitorial Supplies 71.82
Midwest Tape Materials 538.99
One23 Events LLC September 2019 Monthly Fee 2,000.00
Recorded Books Inc Materials 71.56
Page 4
SEPTEMBER MANUALS
Century Link Telephone 485.21
Oakgreen Villa LLC Long Lake Villas Project 248,227.28
Postmaster UB Certification & Newsletter Postage 2,006.61
ADDENDUM
Advance Auto Parts Supplies 9.19
BlueCross BlueShield of MN Inc.Retiree Health Ins 3,164.00
Cintas Corporation Mat cleaning service 201.24
ECM Publishers Publications 42.75
Grainger Supplies 315.32
Inspectron Inc Plan review 3,705.00
Menards Supplies 308.13
NELCOM Wireless Comm.Siren repair 1,495.76
Riedell Shoes Inc.Skates 277.26
Summer Tuesday Inc Refund of event fees 359.00
Thomson Reuters Information Charges 146.20
Washington County Dept of Public 2020 Food & beverage license 649.00
CREDIT CARDS
Active911 Inc Software app for emergency calls 16.10
AED Superstore Batteries 438.12
Amazon.com Supplies 890.67
American Library Association ALA/ALS Membership Renewal (Petrie)278.00
American Planning Association APA & MN Chapter memberships 95.00
B&H Photo Digital recording microphones 815.99
Backgroundchecks.com Back ground checks 107.35
BCA Training & Auditing Training 200.00
City of Burnsville Training 700.00
Dunn Brothers Coffee Coffee for Sgt Interview Panel 17.14
Government Finance Off Assoc.CAFR Review 460.00
Great Harvest Bread Company Scones & muffins for Sgt Interview Panel 30.50
Holiday Inn Duluth Lodging for MOCIC conference - Julien 305.18
ICMA ICMA annual conference 720.00
Menards Blinds for Public Works building 310.93
MN Dept of Labor and Industry DLI fall seminar 255.00
MN Fire Srv. Cert. Board Recertification for 3 staff 150.00
Oasis Cafe Chief bought lunch for Sgt Interview Panel 55.00
Office Max Office chair for Permit Tech 374.04
Rapid Wristbands Fire Prevention Supplies 210.00
Safariland Training Group NIK testing kits 191.20
Sam's Club Fire prevention supplies 65.29
Stillwater Post Office Shipping charges 9.45
Page 5
TechSoup Library IT Project-MS Licensing Public 1,587.00
Walmart Replace damaged canopy tents from St. Mary's 381.36
WebstaurantStore Roaster pans 199.58
West Marine Oil for fire boat - 2 gallons 59.95
TOTAL 2,475,689.86
Adopted by the City Council this
15th day of October, 2019
MEMORANDUM
To: Mayor and City Council
~ From: Shawn Sanders, Director of Public Works
Date: October 14, 2019
Re: Purchase Agreement Approval -Crestwood Terrace
DISCUSSION
Earlier this year, the property owners at 314 Crestwood Terrace proposed to donate a portion of
their property to the City in exchange for the removal of trees on the property. The property is a
separate parcel of land behind the house on 314 Crestwood Terrace adjacent to Meadowlark
Park. (See attached map) The proposed request was presented to both the Park Board and City
Council with no objections. Staff has been working with the owners and the City Attorney on the
conveyance and have a signed purchase agreement with the property owner.
RECOMMENDATION
Staff recommends that Council approve the Purchase Agreement for the property.
ACTIN REQUIRED
If Council concurs with the recommendation, they should pass a motion approving the Purchase
Agreement
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT ("Agreement") is made as of ________ ,
2019 ("Effective Date"), by and between Louis E. Winslow and Carole G. Winslow, as joint tenants,
314 Crestwood Terrace, Stillwater, MN 55082 ("Seller"), and the City, a public body corporate and
politic under the laws of Minnesota, 216 4th Street North, Stillwater, MN 55082 ("City").
RECITALS
A. Seller is the fee owner ofreal property located in the City, Minnesota (PID 29.030.20.34.0075)
legally described on Exhibit A, attached hereto and incorporated herein by reference (the
"Property").
B. City desires to purchase the Property from Seller, and Seller desires to sell the same to City,
all on the terms and conditions of this Agreement.
NOW THEREFORE, for mutual consideration, the Seller and the City agree as follows:
1. Sale.
1.1 Sale. Subject to the terms and provisions of this Agreement, Seller shall sell to
City, and City shall purchase from Seller, the Property on the date of Closing.
1.2 Purchase Price. The purchase price to be paid by City to Seller for the Property
shall be Zero and Noll 00 Dollars ($0.00) (the "Purchase Price"). The Closing as
defined in Section 6 below will occur at DCA Title, 750 Main Street, Suite 208,
Mendota Heights, MN 55118 ("Title"), unless otherwise agreed to by the parties.
If this Agreement is terminated by City as a result of a default by Seller, then neither
Seller nor the City shall be liable to the other for any further obligations under this
Agreement ( except for such obligations as specifically survive termination of this
Agreement).
2. Available Surveys, Tests, and Reports. Within five (5) days of the Effective Date, Seller
shall cause to be delivered to City to the extent same are in the possession and control of
Seller: (a) copies of any surveys, soil tests and environmental reports previously conducted
on the Property; (b) copies ofleases associated with the Property; and ( c) copies of existing
title work for the Property (the "Due Diligence Materials"). Seller makes no representations
or warranties regarding the accuracy or completeness of the Due Diligence Materials. City
acknowledges that the sale of the Property is "AS-IS", "WHERE IS," and "WITH ALL
FAUL TS", and that it is the obligation of City to conduct and complete its due diligence
and investigations relating to the Property.
3. City's Investigations. For a period up to sixty calendar (60) days following the Effective
Date, Seller shall allow City and City's agents access to the Property without charge and
at all times for the purpose of City's investigation and testing of the Property, including
1
surveying and testing of soil and groundwater ("City's Investigations"); provided,
however, City shall not perform any invasive testing unless (a) Seller gives its prior
approval of City's consultant that will perform the testing, which approval shall not be
unreasonably withheld, conditioned or delayed, and (b) City gives Seller reasonable prior
notice of such testing. City shall pay all costs and expenses of the City's Investigations and
shall indemnify and hold Seller and the Property harmless from all costs and liabilities,
including but not limited to mechanics' liens, relating to activities on the Property related
to City's Investigations, however, City shall not be responsible for liens, liability, loss,
expense or costs arising out of the discovery or presence of Hazardous Substances (as such
term is defined in Section 9.1(0)) on the Property or otherwise arising out of Seller's
noncompliance with any Environmental Law (as such term is defined in Section 9. l(G)) or
other law or regulation. Seller shall have the right to accompany City during any of City's
Investigations of the Property. If requested by Seller, City shall provide to Seller copies of
all third-party, non-confidential written test results and reports conducted as part of City's
Investigations. City shall pay all of the costs and expenses associated with City's
Investigations, to cause to be released any lien on the Property arising as a result of City's
Investigations and to repair and restore, at City's expense, any damage to the Property
caused by City's Investigations. The indemnification obligations set forth herein shall
survive termination or cancellation of this Agreement.
4. Insurance; Risk of Loss. Seller assumes all risk of destruction, loss or damage to the
Property prior to the Closing Date. If, prior to the Closing Date, all or any portion of the
Property or access thereto is condemned, taken by eminent domain, or damaged by cause
of any nature, Seller shall immediately give City notice of such condemnation, taking or
damage. After receipt of notice of such condemnation, taking or damage (from Seller or
otherwise), City shall have the option (to be exercised in writing within thirty (30) days of
receipt of such notice) either (a) to require Seller to (i) convey the Property at Closing (as
defined in Section 6 to City in its damaged condition, upon and subject to all of the other
terms and conditions of this Agreement, without reduction of the Purchase Price, (ii) assign
to City at Closing all of Seller's right, title and interest in and to any claims Seller may
have to insurance proceeds, condemnation awards and/or any causes of action with respect
to such condemnation or taking of or damage to the Property or access thereto, and (iii)
pay to City at Closing by certified or official bank check all payments made prior to the
Closing Date under such insurance policies or by such condemning authorities, or (b) to
terminate this Agreement by giving notice of such termination to Seller, whereupon this
Agreement shall be terminated and thereafter neither party shall have any further
obligations to the other, except for such obligations and liabilities that specifically survive
termination of this Agreement. If the right to terminate this Agreement is not exercised in
writing within such thirty (30) day period, such right shall be deemed to have been waived.
5. Contingencies.
5.1. City's Contingencies.
A. Unless waived by City in writing or waived by the passage of time in the
manner set forth herein, City's obligation to proceed to Closing shall be
2
subject to (a) performance by Seller of its obligations hereunder, (b) the
continued accuracy of Seller's representations and warranties provided in
Section 9 .1, and ( c) City's satisfaction, in City's sole discretion, as to the
contingencies described in this Section 5.1 within the time periods set forth
below:
(1) On or before sixty (60) days following the Effective Date, City shall
have determined, in its sole discretion, that it is satisfied with (a) the
results of and matters disclosed by City's Investigations, City's
physical and environmental inspections of the Property (including,
but not limited to surveys, soil tests, engineering inspections,
hazardous substance and environmental reviews of the Property)
and (b) all other inspections and due diligence regarding the
Property, including any Due Diligence Materials. If City has not
terminated this Agreement on or before the Contingency Date ( as
defined below), the contingency set forth in this Section shall be
deemed waived.
(2) On or before sixty (60) days following the Effective Date, City shall
have received from Title an irrevocable commitment to issue a title
insurance policy for the Property in a form and substance
satisfactory to City in City's sole discretion, not disclosing any
encumbrance not acceptable to City in City's sole discretion (the
"Approved Commitment"). If City has not terminated this
Agreement on or before the Contingency Date, the contingency set
forth in this Section shall be deemed waived.
(3) On or before sixty (60) days following the Effective Date, City shall
obtain an ALT A survey for the Property certified to City and Title.
(4) On or before the Closing Date, Seller shall have obtained releases of
the Property from any and all mortgages or other monetary liens
affecting any of the Property.
(5) On or before the Closing Date, the termination or elimination of any
and all option to purchase rights, Rights of First Refusal, or Rights
of First Offer related to the Property to the satisfaction of the City.
The foregoing contingencies are for City's sole and exclusive benefit and one (1) or more may be
waived in writing by City in its sole discretion, or by the passage of time as set forth hereinabove.
Seller shall reasonably cooperate with City's efforts to satisfy such contingencies, at no out of
pocket cost to Seller or assumption of any obligation or liability by City. City shall bear all cost
and expense of satisfying City's contingencies. If any of the foregoing contingencies have not been
satisfied on or before the applicable date, then this Agreement may be terminated, at City's option,
by written notice from City to Seller. If City terminates this Agreement as a result of a failure of
a City contingency prior to the applicable date, neither Seller nor the City shall be liable to the
3
other for any further obligations under this Agreement ( except for such obligations as survive
termination of this Agreement). Such written notice must be given on or before the applicable date
set forth herein above for such contingency, or City's right to terminate this Agreement pursuant
to such contingency shall be waived. Upon termination, neither party shall have any further rights
or obligations against the other regarding. this Agreement or the Property, except for such
obligations that survive termination of this Agreement.
B. If City elects not to exercise any of the contingencies set out herein, such
election may not be construed as limiting any representations or obligations
of Seller set out in this Agreement.
C. As used in this Agreement, the "Contingency Date" shall mean the first (1st)
business day occurring sixty (60) days following the Effective Date.
5.2 Seller's Contingencies. Seller's obligation to proceed to Closing shall be subject
to the satisfaction, on or prior to the Closing Date, of each of the following
conditions:
A. City shall have performed and satisfied all agreements, covenants and
conditions required pursuant to this Agreement to be performed and
satisfied by or prior to the Closing Date.
B. All representations and warranties of City contained in this Agreement shall
be accurate as of the Closing Date.
Seller may in its sole discretion waive any of the conditions precedent set out in this Section. If
any of the foregoing contingencies have not been satisfied on or before the dates set forth herein,
then this Agreement may be terminated, at Seller's sole option, by written notice from Seller to
City. Upon termination, neither party shall have any further rights or obligations against the other
regarding this Agreement or the Property, except for such obligations that survive termination of
this Agreement.
6 . Closing. The Closing of the purchase and sale contemplated by this Agreement (the
"Closing") shall occur on or before December 31, 2019 unless extended by the parties in
writing (the "Closing Date"). Seller agrees to deliver legal and actual possession of the
Property to City on the Closing Date. Closing shall occur at Title.
6.1 Seller's Closing Documents and Deliveries. On the Closing Date, Seller shall
execute and/or deliver, as applicable, to City the following:
A. Warranty Deed. A warranty deed conveying title to the Property to City,
free and clear of ~.11 encumbrances, except the Permitted Encumbrances (the
"Deed").
B. FIRPT A Affidavit. An affidavit of Seller certifying that Seller is not a
"foreign person", "foreign partnership", foreign trust", "foreign estate" or
4
"disregarded entity" as those terms are defined in Section 1445 of the
Internal Revenue Code of 1986, as amended.
C. Seller's Affidavit. A standard owner's affidavit (ALTA form) from Seller
which may be reasonably required by Title to issue an owner's policy of
title insurance with respect to the Property with the so-called "standard
exceptions" deleted (excluding the survey exception).
D. Settlement Statement. A settlement statement with respect to this
transaction.
E. General Deliveries. All other documents reasonably determined by Title to
be necessary to transfer the Property to City and to evidence that Seller (a)
has satisfied all monetary indebtedness with respect thereto, (b) has
obtained such termination statements or releases from such secured
creditors as may be necessary to ensure that the Property is subject to no
monetary liens, ( c) has obtained all consents from third parties necessary to
effect Seller's performance of the terms of this Agreement, including,
without limitation, the consents of all parties holding an interest in the
Property, and (d) has provided such other documents as are reasonably
determined by Title to be necessary to issue policies of title insurance to
City with respect to the Property with the so-called "standard exceptions"
deleted ( excluding the survey exception).
6.2. City Closing Documents and Deliveries. On the Closing Date, City shall execute
and/or deliver, as applicable, to Seller the following:
A. Payment of Purchase Price. The Purchase Price, in accordance with the
terms of Section 1.2.
B. Settlement Statement. A settlement statement with respect to this
transaction.
C . General Deliveries. All other documents reasonably determined by Title
to be necessary to evidence that City has duly authorized the transactions
contemplated hereby and evidence the authority of City to enter into and
perform this Agreement and the documents and instruments required to be
executed and delivered by City pursuant to this Agreement, or may be
required of City under applicable law, including any purchaser's affidavits
or revenue or tax certificates or statements.
7. Prorations. Seller and City agree to the following prorations and allocation of costs
regarding this Agreement:
7.1 Commitment and Closing Fee. Seller will pay all costs of the title search and
preparation of the Commitment with respect to the Property. City will pay the cost
5
7.2
7.3
7.4
7.5
7.6
of all premiums for any title insurance policy it desires with respect to the Property,
and the costs of all endorsements. City and Seller shall each pay one half ( 1 /2) of
any reasonable closing fee or charge imposed by Title.
Transfer Taxes. Seller shall pay all state deed tax regarding the Deed.
Recording Costs. Seller will pay the cost of recording all documents necessary to
place record title to the Property in Seller. City will pay all recording costs with
respect to the recording of the Deed.
Real Estate Taxes and Special A sessments. General real estate taxes applicable
to any of the Property due and payable in the year of Closing shall be prorated
between Seller and City on a daily basis as of 12:00 a.m. CT on the Closing Date
based upon a calendar fiscal year, with Seller paying those allocable to the period
prior to the Closing Date and City being responsible for those allocable to the
Closing Date and subsequent thereto. Seller shall pay in full all special assessments
(and charges in the nature of or in lieu of such assessments) levied, pending,
postponed or deferred with respect to any of the Property as of the Closing Date.
City shall be responsible for any special assessments that are levied or become
pending against the Property after the Closing Date.
Attorneys' Fees. Seller and City shall each pay its own attorneys' fees incurred in
connection with this transaction.
Survival. The obligations set forth in this Section 7 survive the Closing.
8. Survey Examination. Within twenty (20) days following the Effective Date, City shall, at
City's expense, order an ALTA survey.
8.1 City's Objections. Within twenty (20) days after City's receipt of the Commitment
and ALTA survey, City may make written objections ("Objections") to the form or
content of the Commitment and AL TA survey ("Title Objection Period"). The
Objections may include without limitation, any easements, restrictions or other
matters. In the event the Commitment discloses, or City becomes aware of, any lien
on the Property created by Seller that can be discharged or satisfied by the payment
of money ("Monetary Title Matters"), Seller shall discharge or satisfy such
Monetary Title Matters on or prior to the Closing Date. Any matters reflected on
the Commitment and ALT A survey which are not objected to by City within the
Title Objection Period or waived by City in accordance with Section 8.2(B) shall
be deemed to be permitted encumbrances ("Permitted Encumbrances").
Notwithstanding the foregoing, the following items shall be deemed Permitted
Encumbrances: (a) Covenants, conditions, restrictions (without effective forfeiture
provisions) and declarations of record, if any; (b) Reservation of minerals or
mineral rights by the State of Minnesota, if any; ( c) Applicable laws, ordinances,
and regulations. City shall have the renewed right to object to the Commitment and
ALT A survey as the same may be revised from time to time, as to new items
6
contained in any revised Commitment and ALTA survey.
8.2 Seller's Cure. Seller shall be allowed twenty (20) days after the receipt of City's
Objections to cure the same but shall have no obligation to do so. If such cure is
not completed within said period, or if Seller elects not to cure such Objections, the
sole recourse of City shall be to do one of the following:
A. Terminate this Agreement by written notice to Seller, to be issued within
ten (10) days after the expiration of Seller's cure period; or.
B. Waive the Objections within ten (10) days after the expiration of the Seller's
cure period and proceed to Closing, in which event the Objections shall be
deemed Permitted Encumbrances.
If City so terminates this Agreement under this Section 8.2, neither Seller nor the City shall be
liable to the other for any further obligations under this Agreement ( except for such obligations as
specifically survive termination of this Agreement). If City fails to terminate this Agreement under
this Section 8.2(A) in the time set forth therein, City shall be deemed to have elected to proceed
under Section 8.2(8) and waive such Objections, in which the Objections shall be considered
Permitted Encumbrances.
9. Warranties and Representations.
9.1 By Seller. Seller warrants and represents the following to City to be true as of the
Effective Date, and acknowledges that City has relied on such representations and
warranties in agreeing to enter into this Agreement:
A. Seller has the full power, capacity and authority to enter into this
Agreement, and it constitutes the legal, valid and binding obligation of
Seller enforceable in accordance with its terms.
B. The execution, delivery and performance by Seller of this Agreement will
not (a) violate any provision of any law, statute, rule or regulation or any
order, writ, judgment, injunction, decree, determination or award of any
court, governmental agency or arbitrator presently in effect having
applicability to Seller, or (b) result in a breach of or constitute a default
under any indenture, loan or credit agreement or any other agreement, lease
or instrument to which Seller is a party or by which it or the Property may
be bound.
C. To Seller's knowledge, except as contemplated herein, no order, consent,
approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by, any governmental or public body or
authority, or any other entity, is required on the part of Seller to authorize,
or is required in connection with, the execution, delivery and performance
of, or the legality, validity, binding effect or enforceability of, this
7
Agreement.
D. To Seller's knowledge, there are no actions, suits or proceedings pending
or threatened against or affecting Seller or the Property, before any court or
arbitrator, or any governmental department, board, agency or other
instrumentality which in any of the foregoing (a) challenges the legality,
validity or enforceability of this Agreement, or (b) if determined adversely
to Seller, would have a material adverse effect on the ability of Seller to
perform its obligations under this Agreement.
E. To Seller's knowledge, there are no wells or sewage treatment systems
located on any portion of the Property. To Seller's knowledge, there has
been no methamphetamine production on or about any portion of the
Property. To Seller's knowledge, the sewage generated by the Property, if
any, goes to a facility permitted by the Minnesota Pollution Control Agency
and there is no "individual sewage treatment system" (as defined m
Minnesota Statutes§ 115 .55, Subd. l(g)) located on the Property.
F. Seller is not a "foreign person," "foreign corporation," "foreign trust,"
"foreign estate" or "disregarded entity" as those terms are defined in Section
1445 of the Internal Revenue Code.
G. To Seller's knowledge, except as may be disclosed as part of the Due
Diligence Materials, (i) no condition exists on the Property that may support
a claim or cause of action under any Environmental Law (as defined below)
and there are no Hazardous Substances (as defined below) on the Property,
(ii) there has been no release, spill, leak or other contamination or otherwise
onto the Property, and (iii) there are no restrictions, clean ups or remediation
plans regarding the Property. To Seller's knowledge, except as may be
disclosed as part of the Due Diligence Materials, there is no buried waste or
debris on any portion of the Property. "Environmental Law" shall mean (a)
the Comprehensive Environmental Response Compensation and Liability
Act of 1980, 42 U.S.C. § 9601-9657, as amended, or any similar state law
or local ordinance, (b) the Resource Conservation and Recovery Act of
1976, 42 U.S.C. § 6901, et seq., (c) the Federal Water Pollution Control
Act, 33 U.S.C. § 1251 et seq., (d) the Clean Air Act, 42 U.S.C. § 7401, et
seq., (e) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., (f) the
Safe Drinking Water Act, 42 U.S.C. § 300(f) et seq., (g) any law or
regulation governing aboveground or underground storage tanks, (h) any
other federal, state, county, municipal, local or other statute, law, ordinance
or regulation, including, without limitation, the Minnesota Environmental
Response and Liability Act, Minn. Stat. § 1158.01, et seq., (i) all rules or
regulations promulgated under any of the foregoing, and G) any
amendments of the foregoing. "Hazardous Substances" shall mean
polychlorinated biphenyls, petroleum, including crude oil or any fraction
thereof, petroleum products, heating oil, natural gas, natural gas liquids,
8
liquefied natural gas or synthetic gas usable for fuel, and shall include,
without limitation, substances defined as "hazardous substances," "toxic
substances," "hazardous waste," "pollutants or contaminants" or similar
substances under any Environmental Law.
H. There are no unrecorded contracts of any nature or type relating to, affecting
or serving the Property, to which the Seller is a party.
I. There will be no indebtedness attributable to the Property which will remain
unpaid after the Closing Date.
The representations, warranties and other provisions of this Section 9 .1 shall survive Closing for
a period of one (1) year from the Closing Date; provided, however that Seller shall have no liability
with respect to a breach of the representations and warranties set forth in this Agreement if City
has actual knowledge of Seller's breach thereof prior to Closing and City consummates the
acquisition of the Property as provided herein.
City acknowledges and agrees that, except as expressly specified in this Section 9 of this
Agreement, Seller has not made, and Seller hereby specifically disclaims, any representation,
warranty or covenant of any kind, oral or written, expressed or implied, or rising by operation of
law, with respect to the Property, including but not limited to, any warranties or representations as
to the habitability, merchantability, fitness for a particular purpose, title, zoning, tax consequences,
physical or environmental condition, utilities, valuation, governmental approvals, the compliance
of the Property with governmental laws, the truth, accuracy or completeness of any information
provided by or on behalf of Seller to City, or any other matter or item regarding the Property. City
agrees to accept the Property and acknowledges that the sale of the Property as provided for herein
is made by Seller on an "AS IS," "WHERE IS," and "WITH ALL FAUL TS" basis. The limitations
set forth in this Section shall survive the Closing and shall not merge in the Deed.
9.2 By City. City warrants and represents the following to Seller, and acknowledges
that Seller has relied on such representations and warranties in agreeing to enter
into this Agreement:
A. City has all requisite authority to enter into this Agreement and to perform
all of its obligations under this Agreement.
B. The execution, delivery and performance by City of this Agreement will not
(a) violate any provision of any law, statute, rule or regulation or any order,
writ, judgment, injunction, decree, determination or award of any court,
governmental agency or arbitrator presently in effect having applicability to
City, (b) violate or contravene any provision of the articles of incorporation
or bylaws of City, or (c) result in a breach of or constitute a default under
any indenture, loan or credit agreement or any other agreement, lease or
instrument to which City is a party or by which it or any of its properties
may be bound.
9
The representations, warranties and other provisions of this Section 9 .2 shall survive Closing;
provided, however, City shall have no liability with respect to any breach of a particular
representation or warranty if Seller shall fail to notify City in writing of such breach within one
(1) year after the Closing Date.
10 . Additional Obligations of Seller.
10.1 Delivery of Property at Closing. On the Closing Date, Seller shall deliver to City
exclusive possession of the Property.
10.2 Further Assurances. From and after the Closing Date, Seller agrees to execute,
acknowledge and deliver to City such other documents or instruments of transfer
or conveyance as may be reasonably required to carry out its obligations pursuant
to this Agreement.
10.3 Mortgages. On or before the Closing Date, Seller shall satisfy all mortgage and/or
lien indebtedness with respect to all or any portion of the Property and shall obtain
recordable releases of the Property from any and all such mortgages or other liens
affecting all or any portion of the Property. Notwithstanding the foregoing, Seller
shall not be obligated to satisfy any liens that result from the City's Investigations.
10.4 Marketing. At all times prior to the Closing Date, Seller shall not negotiate in any
manner for the sale or transfer of the Property with any third party.
11 . Additional Obligations of City. City agrees to remove one tree that is located on the
Property within ninety (90) days of Closing. Seller shall inform City as to which tree is to
be removed and such tree shall be marked with an X or some other identifying symbol so
that the City can easily identify the tree intended for removal. The obligation set forth in
this Section shall survive the Closing.
12. Broker. It is acknowledged that there is not a broker for City or Seller.
13. Notice. Any notice to be given by one party hereto shall be personally delivered (including
messenger delivery) or be sent by registered or certified mail, or by a nationally recognized
overnight courier which issues a receipt, in each case postage prepaid, to the other party at
the addresses in this Section (or to such other address as may be designated by notice given
pursuant to this Section), and shall be deemed given upon personal delivery, three (3) days
after the date postmarked or one (1) business day after delivery to such overnight courier.
If to City: City of Stillwater
Attn: City Administrator
216 4th Street North
Stillwater, MN 55082
10
14.
15.
16.
17.
18.
19.
with a copy to:
If to Seller:
Korine L. Land
LeVander, Gillen & Miller, P.A.
633 South Concord Street, Suite 400
South St. Paul, MN 55075
Louis E. Winslow
Carole G. Winslow
314 Crestwood Terrace
Stillwater, MN 55082
Default; Remedies. If either Seller or City fails to perform any of its obligations under
this Agreement in accordance with its terms, and such failing party does not cure such
failure within thirty (30) days after written notice thereof from the other party (provided
that no notice or cure period shall be required for obligations to be performed at Closing),
then the other party shall have the right to terminate this Agreement by giving the failing
party written notice of such election. In the case of any default by City, Seller's sole and
exclusive remedy shall be the termination of this Agreement as provided above, with the
exception of any liens arising out of City's Investigations, the obligations and liability for
which shall survive the termination of this Agreement. In the case of any default by Seller,
City's sole and exclusive remedy shall be to terminate this Agreement. In no event shall
City be entitled to record a notice of Lis Pendens against the Property.
Cumulative Rights. No right or remedy conferred or reserved to Seller or City is intended
to be exclusive of any other right or remedy herein or by law provided, but each shall be
cumulative in and in addition to every other right or remedy existing at law, in equity or
by statute, now or hereafter.
Entire Agreement; Modification. This written Agreement constitutes the complete
agreement between the parties with respect to this transaction and supersedes any prior oral
or written agreements between the parties regarding this transaction. There are no verbal
agreements that change this Agreement and no waiver of any of its terms will be effective
unless in writing executed by the parties, except as specifically set forth herein with regard
to items waived as a result of passage of time.
Binding Effect; Survival. This Agreement binds and benefits the parties and their
respective successors and assigns. All representations and warranties, and indemnification
obligations of the parties hereto shall survive the Closing.
Governing Law. The provisions of this Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota, County of Washington.
Counterparts; Facsimiles. This Agreement may be executed in any number of
counterparts, and all of the signatures to this Agreement taken together shall constitute one
and the same agreement, and any of the parties hereto may execute such agreement by
signing any such counterpart. Facsimile or "PDF" signatures on this Agreement shall be
treated as originals until the actual original signatures are obtained.
11
20.
21.
Represented by Counsel. Each party has had the opportunity to be represented and
advised by counsel in the transaction contemplated hereby if they so choose.
Time of the Essence. Time is of the essence of this Agreement.
[Remainder of page intentionally left blank]
12
IN AGREEMENT, the parties hereto have hereunto set their hands as of the date
hereinbefore first written.
CITY
By ~~~~~~~~~~~~~~
Ted Kozlowski
Its Mayor
By ~~~~~~~~~~~~~~
Beth Wolf
Its City Clerk
13
SELLER
Louis E. Winslow
By ~Jf .. 4JJ~~
Carole G. Winslow
14
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
Real property located in the County of Washington, State of Minnesota, legally described
as follows:
Lot Eighteen (18) in Block Four (4) of FAIRMEADOWS No. 2, according to the plat
thereof on file and of record in the office of the Registrar of Titles of Washington County,
Minnesota, NOT INCLUDING that part of Hanson Circle which accrued thereto by
Vacation and Order filed as Document Nos. 29052 and 29053.
Torrens Property.
Being registered as is evidenced by Certificate of Title No. 16213.
[Title Commitment legal description to govern]
A-1
1
Beth Wolf
From:Cameron Murray <ctmurray@mac.com>
Sent:Friday, October 11, 2019 3:09 PM
To:Beth Wolf
Cc:Bill Turnblad
Subject:Comment on: CSAH 5 STREET IMPROVEMENT PROJECT PHASE TWO PROJECT 2019-09
I would like to add my comment for the upcoming Public Hearing.
I would like to suggest that Owen Street from Olive to Myrtle NOT be narrowed from 44 ft to 42 ft.
Traffic coming into the city on CSAH 5 during the evening rush hour, along this stretch of Owen from Olive to Myrtle
heading north, forms two lanes. This is an informal organization by the drivers themselves, there are no lane markers. By
doing this, drivers themselves have helped alleviate a traffic backup issue by providing a right turn lane from Owen onto
Myrtle. Even with this self organization the traffic on occasion comes close to backing onto Olive from traffic heading to
Myrtle. On rare occasions when this extra lane was blocked by parked cars, the traffic really backed up to Olive. So, if
you narrow the road I fear the road in this section of the project it will be too narrow for this informal right turn lane any
of the time, and thus the traffic will routinely backup from Myrtle to Olive on Owen.
One option would be to narrow the total road width as planned, but then formally install a right turn lane with striping
for the north bound traffic. The south bound lane would have to be narrower than 1/2 the street width, and there would
be two formal lanes going north, a through lane and a right turn lane. If the project is not willing to make this
accommodation of three lanes as described, I don’t think it should consider narrowing Owen between Olive and Myrtle.
Thanks for your attention to my email for the public hearing.
Cameron Murray
350 Main Street N
Unit 346
Stillwater, MN 55082
216 4th Street N, Stillwater, MN 55082
651-430-8800
www.ci.stillwater.mn.us
AGENDA
CITY COUNCIL MEETING
October 15, 2019
REGULAR MEETING 7:00 P.M.
I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
1. Swearing in Police Officer Justin Dowley
2. Acknowledging promotion of Daniel Young to Sergeant
V. OPEN FORUM ‐ the open forum is a portion of the council meeting to address council on subjects which are not a part
of the meeting agenda. the council may take action or reply at the time of the statement or may give direction to staff
regarding investigation of the concerns expressed. out of respect for others in attendance, please limit your comments to
5 minutes or less.
VI. STAFF REPORTS
3. Police Chief
4. Fire Chief
5. City Clerk
6. Community Development Director
7. Public Works Director
8. Finance Director
9. City Attorney
10. City Administrator
VII. CONSENT AGENDA ‐ all items listed under the consent agenda are considered to be routine by the city council and will
be enacted by one motion. There will be no separate discussion on these items unless a council member or citizen so
requests, in which event, the items will be removed from the consent agenda and considered separately.
11. October 1, 2019 regular, recessed and closed session meeting minutes
12. Payment of Bills
13. St Croix Boat and Packet Railroad Lease Renewal – Resolution
14. Board of Water Commissions 2018 Audit
15. The Loft at Studio J LLC Sunday Sales Liquor License – Resolution
16. Ziggy’s West On-Sale, Sunday and 2 AM Liquor License – Resolution
17. CPC Case 2019-49 Zoning Map Amendment to rezone certain properties to Rural Residential zoning
district – Ordinance 2nd Reading
18. Board of Water Commission Adoption of Assessments – Resolution
19. U.S. Bench Corporation License Renewal
20. Discontinue CGI Commucations Services
21. Hardcourt Rehabilitation Project Final Payment – Resolution
22. Sanitary Sewer Adjustments
VIII. PUBLIC HEARINGS ‐ out of respect for others in attendance, please limit your comments to 10 minutes or less.
23. CSAH 5 Street Improvement Project Phase Two, Project 2019-09 to consider street and sidewalk
improvements on North Owens Street from Olive Street W to Sycamore St. Notice was published in the
Stillwater Gazette on October 4 and 11, 2019 and mailed to affected property owners – Resolution
IX. UNFINISHED BUSINESS
X. NEW BUSINESS
24. Problem Property Designation Appeal on 918 5th Ave S – Resolution
25. Order Feasibility Study for 2020 Street Improvement Project – Resolution
26. Authorize Bids for St. Croix River Riverbank Stabilization and Riverwalk Project – Resolution
27. Sanitary Sewer Rate Increase – Resolution
28. Solar Garden Agreement for Sunrise CSG-1 Site – Resolution
XI. COUNCIL REQUEST ITEMS
XII. CLOSED SESSION
29. Pursuant to Minn. Stat. §13D.05 subd. 3(b) to discuss attorney-client privileged communication
regarding 121 Chestnut Street East
XIII. ADJOURNMENT
216 4th Street N, Stillwater, MN 55082
651-430-8800
www.ci.stillwater.mn.us
CITY COUNCIL MEETING MINUTES
October 1, 2019
REGULAR MEETING 4:30 P.M.
Vice Mayor Polehna called the meeting to order at 4:35 p.m.
Present: Vice Mayor Polehna, Councilmembers Collins, Junker, Weidner
Absent: Mayor Kozlowski
Staff present: City Administrator McCarty
Community Development Director Turnblad
Police Chief Gannaway
Fire Chief Glaser
Public Works Director Sanders
Finance Director Provos
City Clerk Wolf
OTHER BUSINESS
River Stabilization Project Update
Public Works Director Sanders stated the design of the River Stabilization Project is almost
completed and ready for bid. He showed the riverwalk location from the Dock Café down to
the Shoddy Mill buildings and pointed out where three overlooks will be constructed. The
St. Croix Boat & Packet gangways will be rebuilt about five feet further out. The new
riverwalk will gradually tie into the existing trail.
Councilmember Weidner asked what is planned to protect the sanitary sewer; and Mr.
Sanders replied that soil-filled rip rap will be added to stabilize the banks along 300-400
feet of riverbank to protect the sanitary sewer.
Councilmember Junker conveyed that the Heritage Preservation Commission (HPC) had
some concerns about the material to be used on the overlooks; and Mr. Sanders stated that
the overlooks will be constructed of painted precast concrete panels. The elevation has been
pushed back in response to HPC concerns.
Councilmember Weidner inquired if the third overlook will flood in the spring, and whether
the railings are sturdy enough to handle junk drifting down the river during flooding; and
Mr. Sanders replied yes, the third overlook will probably flood every year. The railings will
be heavy duty and should handle the debris. He explained that the section in front of the
Dock Café has been pulled from the project for now and will probably be done in the future.
A new easement will need to be obtained due to the steep slope in the City’s existing
easement. The Dock Café opposes the walkway being on their property and would not grant
the new easement unless the walkway is gravel. For now the new walkway will end south
of the Dock Café.
Councilmember Weidner asked if the walkway could be built on the City’s existing
easement, using stairs to accommodate the elevation difference; and Mr. Sanders stated he
City Council Meeting October 1, 2019
Page 2 of 13
will work with the project engineer to see what can be done about getting a walkway in the
existing easement and report back to the Council.
Health Insurance Opt Out Option
City Administrator McCarty explained that the City’s Labor Management Insurance Work
Group evaluated an opt-out pilot program concept for 2020. It could provide an annual net
savings in premiums paid for employee health insurance. Staff recommends that the Council
adopt a resolution approving a one-year pilot program for 2020 offering $250 per month
cash in lieu of payment to employees who opt out of the City’s Blue Cross Blue Shield group
health insurance coverage, provided they are covered on their partner’s group health
insurance plan.
Motion by Councilmember Junker, seconded by Councilmember Collins, to adopt Resolution
2019‐106, approving a one year pilot program for 2020 offering cash in lieu of opt out option
City of Stillwater Group Health Insurance Plan for benefits eligible City employees. All in favor.
STAFF REPORTS
Fire Chief Glaser invited Council and staff to a dinner at the fire station during recess for Fire
Prevention Week. The open house will be October 12.
Community Development Director Turnblad reported that the 15th of 15 available
applications for Type C Short Term Home Rental licenses in residential neighborhoods has
been handed out.
Public Works Director Sanders informed the Council that the river level is expected to rise
to 683.9 by the end of the week. The City received a petition from residents in the West
Ridge Circle neighborhood to allow parking in the middle of cul de sacs. Staff is researching
it and will bring it to the Council for discussion.
City Administrator McCarty reported that the St. Croix Valley R ec Center dome is up. A walk-
through will take place in early November. Councilmembers will get an email asking about
dates for a breakfast with legislators to discuss important items for the coming session.
RECESS
Vice Mayor Polehna recessed the meeting at 5:29 p.m.
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:04 p.m.
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Weidner, Polehna
Absent: None
Staff present: City Administrator McCarty
City Attorney Land
Community Development Director Turnblad
City Council Meeting October 1, 2019
Page 3 of 13
Police Chief Gannaway
Fire Chief Glaser
City Engineer Sanders
Assistant City Engineer Abdullah
City Clerk Wolf
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
Proclamation: 2019 Fire Prevention Week
Fire Chief Glaser brought forward members of the Stillwater Fire Department. Mayor
Kozlowski read a proclamation designating October 6-12 as Fire Prevention Week. Assistant
Chief Zeuli stated that the Department is visiting all schools. He invited the public to attend
the open house at the Fire Station on Saturday, October 12.
Proclamation: Tim Bell for 50 years of service to the City of Stillwater
Mayor Kozlowski read a proclamation honoring Timothy J. Bell for 50 years of service to the
City as police officer, sergeant, and as a firefighter, firefighter/engineer, captain and
assistant chief. He is the longest serving member of the Stillwater Fire Department to date.
Proclamation: Stillwater Rotary 100th Anniversary
Mayor Kozlowski read a proclamation designating October 10 as Stillwater Rotary Day in
honor of the Stillwater Rotary celebrating 100 years of service to the community.
Tracey Galowitz acknowledged the Rotary’s upcoming celebration at JX Center on October
10.
OPEN FORUM
Dick Richter, owner of Midtown Antiques, 301 South Main Street, voiced a complaint about
a trash enclosure that was placed behind their building directly in front of their Water Street
door without notification. He agrees that getting garbage and trash out of sight is a good
idea and is happy to help make it happen, but there are alterna tive spots that are not in front
of anyone’s door. Community Development Director Turnblad responded that the
enclosure can move a bit in either direction. He will talk to the property owners.
Brian Fladebo, owner of Mai Little Cakes, asked that the smoking receptacle installed next
to their shop be moved because it encourages people to smoke near the vent that brings air
into their shop and kitchen area.
CONSENT AGENDA
September 17, 2019 regular meeting minutes
September 10, 2019 City Council and Heritage Preservation Commission special
meeting minutes
Payment of Bills
Ordinance No. 1133, an Interim Ordinance Prohibiting Acceptance, Consideration or
Consideration of Applications related to Demolition Permits for an Historically
Significant Building or Structure or a Building or Structure that is considered an
Historic Resource
Fraternal Order of Eagles 94 Gambling Premise Permit
Patriots Tavern Gambling Premise Permit
City Council Meeting October 1, 2019
Page 4 of 13
Valley Chamber Chorale Temporary Liquor License
The Lumberjack On-Sale and Sunday Sale Liquor License
Portside Additional License Premise for Revival Coffee Shop
Resolution 2019‐107, JX Event Venue Sunday Sales Liquor License
Website Improvement Project
Resolution 2019‐108, approving Minnesota Historical Society Historical & Cultural
Heritage Grant Acceptance Form
Resolution 2019‐109, approving Health and Dental Insurance Premiums and City
Contribution effective January 1, 2020
Resolution 2019‐110, authorizing No Parking on North Fourth Street and North Main
Street
Resolution 2019‐111, adopting delinquent Parking Mitigation Fees (L.I. Project
#00080)
New Fire Truck Purchase
Resolution 2019‐112, accepting work and ordering final payment for Pioneer Park
Restroom Improvement Project, Project 2018-14
Resolution 2019‐113, Resolution Supporting Federal Land and Water Conservation
Fund
Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt the Consent
Agenda. All in favor.
PUBLIC HEARINGS
Assessment Hearing for the 2019 Street Improvement Project (Project 2019-02)
Assistant City Engineer Abdullah stated that the 2019 Street Project is nearly completed.
Wet weather caused many delays. The final project cost is estimated to be $2,439,991.81.
He provided the assessment roll, explained the assessment rates, and stated the appraisals
were slightly lower than the estimated assessments. The assessment period would be 10
years at 2.75% interest. Five written objections to the assessments have been received. Staff
recommends that the Council adopt the assessment roll.
City Attorney Land explained the appeal process. Anyone wishing to object to their
assessment must file a written or verbal objection by tonight. Step 2 is within 30 days of
when the Council adopts the assessment role, they must file a notice of claim with the City
Clerk or Mayor. Within 10 days of that, they must file an objection and appeal with District
Court. At that point it is a District Court action and the Court will notice the City and property
owner and it will be heard before a District Court judge.
Mayor Kozlowski opened the public hearing.
Laura Podgornik, 2530 Countryside Court, stated she was surprised to get a $2,800 bill. The
communication about this project was poor. She found it very troubling to get a notification
two weeks ago and then have to pay by November 1 or have it financed. The notice did not
give any information about what the project would entail or that she could not use her
driveway.
Joe Samuelson, 1019 North Second Street agreed that communication was poor but a larger
problem is how the City finances street repairs. He finds it ironic that the value of his house,
which was chosen for an appraisal, was appraised significantly higher than the County’s
City Council Meeting October 1, 2019
Page 5 of 13
value and that after the street project, it will be valued $9,000 higher which is the
assessment amount. The City needs to find another mechanism to pay for street projects.
Gary Rosch, 1016 Parkwood Lane, stated the project was not well planned. After two major
storms, the mesh on the storm drains caused problems. He called the City, but no one
showed up.
Pete Lee, 816 Sixth Avenue South, stated he had no problem with doing the street, but
questioned why he was being charged the same rate as those getting a new sidewalk
because he did not get a new sidewalk. He also asked why some curbs will remain stone
while others will get new curb; and Public Works Director Sanders replied on Broadway and
Sixth Avenue South there are sidewalks on about 2/3 of the street. In calculating the
assessments, all the costs were lumped together so everybody is paying for the new
sidewalk, sidewalk repairs and pedestrian ramps to be added in that area.
Bill Beguhl, 687 South Broadway, asked to see a plan showing what will happen in front of
his house. He expressed concern he might not have any front yard left and will have people
walking within a foot of his kitchen window; and Mr. Sanders invited Mr. Beguhl to stop by
the office to see the construction plans.
City Clerk Wolf agreed to put a link to the construction plans on the City web site.
Marketa Palkova-Resong, 866 Sunrise Court, stated she was surprised by the bill she
received right after moving into her house in May. She did not know what the project was
about. She has two meters of new curb in front of her house and is not sure if there is a plan
to replace the entire curb. She asked why is interest being charged; and Public Works
Director Sanders responded that early on, the City had a neighborhood meeting to discuss
the project and notified all the property owners. In March after the Council approved the
feasibility study, another notice was sent to all the property owners. Another letter was sent
in May to state the City had hired a contractor and the project would be starting. That was
the last written communication sent through the mail. Property owners are notified that if
they want info on the project, they may sign up to receive construction updates every two
weeks. The records of property owners are obtained from the County. Information also is
posted on the City’s web site.
Mr. Beguhl asked that something be done about speeding where Sixth turns into Broadway.
Terry Danley, 1005 North Second Street, asked how the assessment roll was done,
specifically if the property at 1007 North Second was included on the roll; and Assistant City
Engineer Abdullah answered no, that address was not included because its only Second
Street frontage is a driveway.
Mr. Danley stated all property owners on Second Street should pay, otherwise it is arbitrary
and capricious.
Public Works Director Sanders added that staff felt because that property had only 12 feet
of frontage and the house was not on Second Street, it should not be included in the
assessment roll.
City Attorney Land pointed out there is a special test to determine whether a property will
benefit from an improvement. The City must be able to support the assessment. If the City
City Council Meeting October 1, 2019
Page 6 of 13
does not feel it can support a benefit on a particular property, then the City may choose not
to assess a particular property.
Jenny Tuccitto, 1003 Second Street North, stated she voiced concerns at the Council meeting
in April. The water/drainage project was never brought to her attention. To date their road
work has not begun but digging has started for a different project. She asked why she was
not informed.
Assistant City Engineer Abdullah replied that the repair of the storm sewer in the bottom of
the ravine was added because engineers inspected the tunnel and found it was collapsing.
That part is being paid by State aid funds and not assessed to the properties.
Public Works Director Sanders added that the street would have to be done regardless of
storm sewer repairs.
Ms. Tuccitto stated she came home yesterday with no access to her driveway. She would
appreciate better communication. She also shared concerns on the timeline of the project
and whether the quality would be impacted by lower temperatures.
Mr. Abdullah replied there is still enough time to put in concrete which is only affected when
it is below freezing.
Ms. Tuccitto went on to state that her husband is a contractor and he never gets paid in full
for a project that is not done. She questioned that if this project would not be done by
November 1, why do the taxpayers have to pay in full and begin paying interest on a project
that is not complete; and Mr. Sanders replied that the City pays the contractor pay monthly
for the work performed. The assessment hearing must take place 30 days prior to when the
City has to send the assessment roll to the County to put it on the tax rolls.
Mayor Kozlowski reiterated that the City must pay the contractors for the work as it is done.
James DeCaro, 402 Sherburne Street South, stated his walk and driveway apron were
replaced with inferior materials. He was told by a City employee when the apron and walk
were poured that the walk would be redone in the spring. He asked if that is true.
Mr. Sanders asked Mr. DeCaro to call him and he will go out and take a look.
Mr. DeCaro remarked it is unfair to expect property owners to pay for work that is yet to be
done. If the final layer of pavement will be put down next year why could not that be
assessed next year rather than this year?
Mayor Kozlowski noted the City has been paying the contractors long before the assessment
payments come in. The interest rates the City charges are the rates at which the City
borrows, with a little extra to pay for managing costs. If there is a way to move timelines
around so property owners are not paying until the work is done, he does not have a
problem with that.
Tom O’Brien, 1022 North Second Street, agreed with homeowners’ previous comments. He
asked if the waterline will be lowered into the ground to correct water flows into his
basement.
Mr. Sanders explained that when street projects are scheduled, City staff asks the Water
Board if there are any concerns with water hydrants or valves in the area. The issue with
City Council Meeting October 1, 2019
Page 7 of 13
Mr. O’Brien’s shallow water service was not brought up. He can talk to the contractor about
possibly adding this to the work and inform Mr. O’Brien.
Mary Russell, 921 North Second Street, objected to her assessment because her street and
sidewalk were in fine shape. Paying for work before seeing the quality of the work is a
concern. She also questioned paying interest on a bill received just two weeks ago. She does
not believe her value is increased at all by this work. The assessment would raise her taxes
by a third. The assessments are hurting longer term residents a nd senior citizens. She would
like it to be stretched over 20 years instead of 10 years.
Mayor Kozlowski asked if the City could extend the assessment period for some property
owners.
City Attorney Land responded that all classes of property must be treated equally.
Jennifer Wille, 1202 West Pine Street, thanked the City for replacing the street as it was
desperately needed and looks good so far. She came to the community meeting, April
hearing, and talked with City staff about her walkway which is stained concrete. She was
assured it could be matched to the existing, but it does not match, is sloppy, and she would
like it fixed. She added that she felt the City’s communication about the project was great.
Assisatant City Engineer Abdullah stated he will check it out.
Mayor Kozlowski encouraged residents to alert the City to quality issues.
Ben Koller, 656 Evergreen Court, stated the communication was really bad. He added there
are cracks in the surface. He asked how the engineers know the next layer would not crack
next year.
Mr. Sanders replied in mill and overlay you will get cracking. Within a year, crack sealing
will be done to seal those up.
Nile Kriesel, 627 Hillside Lane, noted that the letter states residents have until November 1
to pay in full. He urged the Council to adopt the assessment roll because if they wait until
June 2020, the interest that the City must pay for the bonds would be added to the
assessments.
Mr. Sanders stated the due date could be changed to November 15.
Mike Carver, 513 Oak Street West, asked if appraisal information is available online; and Mr.
Sanders stated the information can be put on the web site.
Mayor Kozlowski closed the public hearing.
Mayor Kozlowski reflected that communication continues to be a challenge. The City does
not have the staff to go door to door. It must rely on mail. He acknowledged the need to do
a better job informing property owners, incorporating social media as well as mail and
newspapers.
Councilmember Weidner stated he appreciated all the comments. Criticism is necessary in
order for the Council to understand how to change.
Councilmember Junker thanked the property owners for their comments. He stated he is
troubled that the house at 1007 North Second was not assessed. He does not have a problem
City Council Meeting October 1, 2019
Page 8 of 13
with moving the due date from November 1 to November 15 for payments in full with no
interest.
Ms. Land stated the property owner at 1007 North Second Street was probably not given
any notice so they have not been given due process to come and appeal, therefore the
Council may not include them in the assessment roll to be adopted tonight.
Mayor Kozlowski stated he is very surprised at the appraisal amounts. He does not feel that
street improvements add tangible value to a property. If the Council changed the assessment
policy and made it 80/20, there would be many very angry people who are still paying
assessments from 10 to 15 years ago. However, he would love to have that conversation
with the community.
Councilmember Weidner disagreed. He feels the current assessment policy is fair and there
is a process for appeal.
Motion by Councilmember Weidner, seconded by Councilmember Junker, to adopt Resolution
2019‐115, resolution adopting Assessment for 2019 Street Improvement Project (Project
2019-02), L.I. 426, changing the due date to November 15. All in favor.
Assessment Hearing for the 2019 Sidewalk Rehabilitation Project (Project 2019-06)
Public Works Director Sanders stated that the 2019 Sidewalk Rehabilitation Project will
begin soon. The estimated total cost is $67,814.20. There are 50 properties proposed to be
assessed with 4,542 square feet of sidewalk being replaced. The residential assessment
amount is $33,907.10 at a rate of $7.47 per square foot of sidewalk replaced. The assessment
period is five years at 2.75% interest. To date the City has not received any letters of
objection. This project is tied to the 2019 street project. It will be started next week and will
take about two weeks to complete. Staff recommends that the Council adopt the assessment
roll.
Mayor Kozlowski opened the public hearing. There were no public comments. The public
hearing was closed.
Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution
2019‐114, resolution adopting assessment for 2019 Sidewalk Rehabilitation Project (Project
2019-06, L.I. 415). All in favor.
CPC Case 2019-49 to consider a request of a Zoning Map Amendment to rezone certain
properties to RR – Rural Residential zoning district.
Community Development Director Turnblad explained that on October 5, 2018, the Council
enacted a one-year moratorium on all new subdivisions and lot splits in an area referred to
as the “Minar Neighborhood” which includes properties located on Minar Avenue North,
Minar Lane North, 75th Street North, 77th Street North, and 77th Street Court North. The
moratorium was designed to give the City time to develop and adopt a zoning district
appropriate for the neighborhood. On August 20, 2019 the City Council adopted an
ordinance creating a Rural Residential zoning district designed for low-density residential
neighborhood development. The Planning Commission held a public hearing and
forwarded a unanimous recommendation to rezone the subject properties. Staff
recommends the City Council approve the first reading of the Ordinance rezoning Lots 1-7,
City Council Meeting October 1, 2019
Page 9 of 13
Block 1, Lots 1-10, Block 2, Lots 1-7, Block 3, and Lots 1-5, Block 4, Boutwell Valley Estates
and Lots 1-13, Block 1, and Lots 1-3, Block 2, Springcreek to RR – Rural Residential.
Mayor Kozlowski opened the public hearing. There were no public comments. The public
hearing was closed.
Motion by Councilmember Weidner, seconded by Councilmember Collins, to approve the first
reading of an Ordinance amending the Stillwater City Code Chapter 31, entitled Zoning
Ordinance, by amending the zoning map of the City to rezone certain property within the AP-
Agricultural Preservation and RA-One Family Residential Districts by adding them to the RR-
Rural Residential District. All in favor.
UNFINISHED BUSINESS
There was no unfinished business.
NEW BUSINESS
Ice Castles Event and Contract
City Administrator McCarty informed the Council that Ice Castles Inc., has made application
to locate their attraction in downtown Stillwater for the 2019-2020 season. The venue
would be in the same location as 2017-2018, in north Lowell Park at the east end of Myrtle
Street near the gazebo between the Lift Bridge and the pedestri an plaza/amphitheater area.
Ice Castles requests use of the Lowell Park area from mid-October 2019 through March 31,
2020. This will be the third year that the Ice Castle would be located in Stillwater. During
the 2017-2018 season, the Ice Castle drew nearly 100,000 people. However the external
appearance of the venue was ragged at times during the setup, operation and cleanup
periods. Damage to the Lowell Park infrastructure from placement of the Ice Castle
structure was extensive in 2018 and ice remained in Lowell Park until well into May 2018.
The Downtown Parking Commission and the Parks Commission have reviewed the proposal
and recommend approval. The Board of Water Commissioners expressed concern regarding
the volume of water used in the construction of the Ice Castle in 2017-2018 (16 million
gallons) and is therefore recommending a maximum use of 11 million gallons of water for
2019-2020. Based on previous years’ experience with the Ice Castle structure, City staff
recommends that 13 conditions of approval be included in the Ice Castles Agreement. Mr.
McCarty reviewed the 13 recommended conditions of approval.
Ryan Davis, Ice Castles, stated there are very few events that bring 100,000 people and $5
million to town. If the site parameters are too narrow there are certain things they can not
build. The site already is the most narrow they have ever built on in Minnesota. The
requirement to stay off Sam Bloomer Way would be a deal killer.
Public Works Director Sanders stated that in past years the structure was not built on Sam
Bloomer. Staff is proposing that the overspray of ice can not go onto Sam Bloomer Way. The
problem is in the last year the overspray got too close to the gazebo, which is not actually
secured. Staff is concerned about its foundation. Another concern is the proximity to the
levee wall. It would be an expensive repair if any damage were to occur.
Mr. Davis explained that they use sprinklers that spray about an 8 foot radius and 15 foot
circumference. They put them right on Sam Bloomer so their wall goes straight up from that.
City Council Meeting October 1, 2019
Page 10 of 13
The water blows and you end up with more build up around the bottom that covers
everything. so it would encompass the levee wall.
Mayor Kozlowski asked if City staff saw damage caused during the first two years.
Mr. Sanders replied the first year it was new. The second year they expanded a little and
staff saw more effect on the gazebo, so this time staff recommends keeping the overspray
away from the gazebo. The overspray turns out to be just as tall as the structure throughout
the winter. He would recommend that the overspray would not exceed the red line on the
site map.
Mr. Davis replied that is not possible to do.
Mayor Kozlowski asked, if the levee wall fails from something they are doing, are they
responsible; and Mr. McCarty replied yes.
Mr. Davis noted that the removal of all structures required in Condition 2 depends on the
weather. Flexibility is needed.
Mr. McCarty pointed out that extreme flooding would hasten the removal process because
there would be only a short time to build a levee. In general, removing all equipment,
buildings and fencing once they close for business should be acceptable. Generally this
would be in early March. In previous years the Council has talked about somehow
expediting the removal of the ice itself. Staff inquired a couple years ago with state agencies
about allowing the ice to go into the river. Some of the agencies had no problem with it and
staff is relying on that again as an option. In the proposed co ntract, March 15 is the proposed
deadline to get equipment, fencing, and buildings off site and March 31 is the date to knock
the castle down to the 4-6 foot level.
Councilmember Polehna commented that when it is over, it needs to be gone. That first year
when the fences were still up and equipment remained so long, the public complained a lot.
Councilmember Junker stated in both years, the park really was not available until May 15.
Mr. Davis replied that getting buildings and fencing out is easy to control. The rest of it
depends on the sun and weather. A target date of three weeks after closing would be
reasonable for clearing the area.
Councilmember Weidner asked about potential damage to the gazebo.
Mr. Sanders responded the pressure of the ice up against the foundation of the gazebo is the
concern. The City could not prove there were cracks because of the ice castle. This year,
photos will be taken to better document any impacts.
Mr. Davis asked if the river creates a load on the park in the same way as the Ice Castle; and
Mr. Sanders replied that the river load is not 4-5 months out of the year, as it is with the ice
structure. Water and ice weigh 62 pounds per cubic foot.
Councilmember Junker added that the park is saturated now, and has been underwater
almost the entire year. The Ice Castle is going to go on an extremely soft base.
Mr. Davis countered that the ground freezes solid. He does not want the Ice Castle to cause
a problem with the park. He can keep ice off the wall and off the gazebo. He does not recall
that in past years, the ice encased the gazebo. He added that in the last engineering report,
the third party that evaluated it was off by 1,000%.
City Council Meeting October 1, 2019
Page 11 of 13
Mr. Sanders stated it was off by a factor of 10. The numbers the City got from the Water
Board stated 16 million gallons were used the first year. That is the amount of water the
engineer assumed was in the ice castle. Then Ice Castles pointed out they probably only used
1-1.5 million gallons which reduced the usage by a factor of ten. Even with that reduction
there is still a concern about the load under the structure.
Councilmember Weidner noted the Ice Castle is fantastic. It is up to the Council to weigh
long term damage to the park. He hopes the Ice Castle can work out a location with City staff
that is less threatening to the infrastructure.
Mr. Davis stated he has talked to a few engineers and they do not have the same level of
concern based on the PSI. The PSI is about 3 to 5. 12-15 million pounds is a lot of weight but
spread over 20-30,000 feet it is a lower PSI. He does not want to be responsible for any
damage.
Mr. Sanders agreed to visit the site with Mr. Davis to see if there is some jockeying that can
be done.
Mayor Kozlowski suggested the contract require removal three weeks from when they close
operations rather than a certain date.
Councilmember Junker stated he would like to see the base revenue to the City increased.
Under the current contract the City would make $30,000 which is only about 2.9% of the Ice
Castles’ revenue. Gross revenue on 100,000 visitors is over $1 million. He also is concerned
about the water usage.
Mr. Davis countered that the Ice Castles got a $150,000 grant in Lake Geneva to come to
town. They have three other options they are considering this winter.
Mayor Kozlowski stated he is fine with the fees proposed in the contract. It is a good use of
the park though it disrupts day to day operations. The benefits outweigh the frustrations.
Mr. Davis stated the biggest issue is to walk the site and see what the proposed restrictions
would do to the operation.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt
Resolution 2019‐116, resolution approving the Ice Castles Agreement, with the following
amendments: changing the deadline date for removal of the structure to three weeks from the
last day of operation; requiring Public Works Director Sanders’s approval on placement of the
structure; and requiring negotiation of a City percentage of the ticket fees. All in favor.
Rivertown Art Festival Fee Waiver Request
City Clerk Wolf stated that the Chamber of Commerce is asking for the same consideration
given to Harvest Fest, waiving the $1,750 park fees.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to waive $1,750 in
park fees for the 2019 Rivertown Art Festival. All in favor.
South Main Street Steps Bluff Repair
Public Works Director Sanders reported that earlier this summer, there was a bluff failure
on the west side of Main Street along the east side of the lower Main Street steps. This area
of the bluff is directly below the storm sewer that drains the north end of Broadway Street
City Council Meeting October 1, 2019
Page 12 of 13
South. The City was been with working with a contractor and a Geotechnical Engineer to
temporarily stabilize the slope by removing unstable limestone and to determine the extent
of damage and solution for repair. To protect the bluff and the storm sewer it will be
necessary to install a large modular block retaining wall and backfill with concrete. Staff
received three quotes, with George Siegfried Construction submitting a low bid at $63,505.
It is anticipated the work will begin the last week of October. The project would be paid for
from the storm sewer utility fund. Staff recommends that Council accept and approve the
quote submitted by George Siegfried Construction for the South Main Street Steps Bluff
Repair.
Motion by Councilmember Collins, seconded by Councilmember Polehna, to accept the quote of
George Siegfried Construction for the South Main Street Steps Bluff Repair in the amount of
$63,505. All in favor.
COUNCIL REQUEST ITEMS
There were no Council request items.
CLOSED SESSION
Motion by Councilmember Collins, seconded by Councilmember Junker, to adjourn to closed
session pursuant to Minn. Stat. 13D.05 subd. 3(b) to discuss attorney/client privileged
communication regarding 121 Chestnut Street East. All in favor. The meeting was adjourned to
closed session at 10:44 p.m.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Weidner and Polehna.
Also present: City Administrator McCarty, City Attorney Land, Attorney Peter Mikhail and
Community Development Director Turnblad.
Motion by Councilmember Junker seconded by Councilmember Polehna to re-open the meeting
at 11:41 p.m.
ADJOURNMENT
Motion by Councilmember Junker seconded by Councilmember Polehna to adjourn. All in favor.
The meeting was adjourned at 11:42 p.m.
Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Clerk
Resolution 2019‐106, approving a one year pilot program for 2020 offering cash in
lieu of opt out option City of Stillwater Group Health Insurance Plan for benefits
eligible City employees
Resolution 2019‐107, JX Event Venue Sunday Sales Liquor License
City Council Meeting October 1, 2019
Page 13 of 13
Resolution 2019‐108, approving Minnesota Historical Society Historical & Cultural
Heritage Grant Acceptance Form
Resolution 2019‐109, approving Health and Dental Insurance Premiums and City
Contribution effective January 1, 2020
Resolution 2019‐110, authorizing No Parking on North Fourth Street and North Main
Street
Resolution 2019‐111, adopting delinquent Parking Mitigation Fees (L.I. Project
#00080)
Resolution 2019‐112, accepting work and ordering final payment for Pioneer Park
Restroom Improvement Project, Project 2018-14
Resolution 2019‐113, Resolution Supporting Federal Land and Water Conservation
Fund
Resolution 2019‐114, resolution adopting assessment for 2019 Sidewalk
Rehabilitation Project (Project 2019-06, L.I. 415)
Resolution 2019‐115, resolution adopting Assessment for 2019 Street Improvement
Project (Project 2019-02)
Resolution 2019‐116, resolution approving the Ice Castles Agreement
Ordinance No. 1133, an Interim Ordinance Prohibiting Acceptance, Consideration or
Consideration of Applications related to Demolition Permits for an Historically
Significant Building or Structure or a Building or Structure that is considered an
Historic Resource
Page 1
LIST OF BILLS
Accela Inc Monthly UB web payments 359.71
Ace Hardware Supplies 9.18
Advance Auto Parts Supplies 133.91
Advanced Sportswear Uniforms with logo 1,128.00
American Test Center Safety inspection 1,335.00
Aspen Mills Uniforms 1,912.22
Baker Tilly Municipal Advisors Bond issuance fees 20,597.00
Bartlett Melissa Refund Park Fee 160.00
Blue Tarp Financial Tools 201.78
Board of Water Commissioners WAC Charges 3,564.00
Brochman Blacktopping Co.2019 Court Rehab 59,686.17
Buberl Black Dirt Inc.Black dirt 75.00
Bureau of Crim. Apprehension Terminal access charge 270.00
CDW Government Inc.Supplies 143.27
Centro Print Solutions 1099s and w2s 214.58
Century Link Telephones 485.43
Century Power Equipment Equipment repair supplies 148.38
Cintas Corporation Mat & uniform cleaning service 520.98
Cities Digital Solutions LaserFiche 13,613.00
City of St. Paul Training 169.00
Clog Un-Boggler Inc.Unclog stool 285.00
Comcast Internet & Voice 290.07
Community Thread Contribution 4,000.00
Crysteel Truck Equip Complete plow assembly 14,112.86
Cub Foods Pancake breakfast & open house 485.12
Custom Fire Apparatus Fire Truck 557,300.00
Dalco Janitorial supplies 105.31
DCA Title Title searches 2,400.00
Dell Marketing L.P.Computers 14,834.42
Door Service Company Door repair 4,953.00
ECM Publishers Publications 147.25
Ecolab Pest Ants 462.28
Emergency Response Solutions Equipment repair 12.07
Enterprise FM Trust Lease vehicles 9,325.42
Fastenal Company Supplies 34.38
Flexible Pipe Tool Co.Equipment repair charges 949.60
Galls LLC Uniform - Gannaway 196.42
Gopher State One Call Inc.Locates 418.50
GovHR Public Work Review 10,275.00
Grainger Supplies 750.24
Granicus Inc Website upgrade 14,280.00
Guardian Supply Uniform supplies - Olson 129.98
Hardwood Creek Lumber Inc.Materials 154.30
Holiday Companies Vehicle washes 205.00
Hotsy Equipment of Minnesota Repair charges 1,269.86
Page 2
Hudson Fire Department Zoll X Series Monitor 4,000.00
IIMC Membership 170.00
Jefferson Fire and Safety Inc.Equipment 2,856.25
Kelly & Lemmons PA Prosecution 8,333.00
Kwik Trip Inc Fuel 16.75
LeVander Gillen Miller PA Professional services 9,348.44
Lincoln National Life Insurance Co COBRA Life Insurance 18.00
Loffler Companies IT Professional 870.00
MacQueen Equipment Inc.Equipment repair supplies 472.96
MailFinance Inc Folding Machine Lease 1,174.05
Mansfield Oil Company Fuel 4,881.25
Marshall Electric Company Electrical repair 2,807.00
Menards Supplies 1,081.39
Metropolitan Council Wastewater Charge & SAC 160,770.74
Miller Excavating Projects 525,101.76
MN Dept of Labor and Industry Quarterly Surcharge 8,032.27
Moody's Investors Service Rating agency fees 12,500.00
MP Nexlevel LLC Locating 1,031.25
Municode Code pages 366.60
NAPA Auto Parts Supplies 6.55
Northern Bedrock 1053 S Main Archaeological Dist 5,000.00
Nutritional Weight & Wellness Wellness seminars 900.00
Office Depot Supplies 131.36
OnSite Sanitation Portable Restroom 1,504.00
Oxygen Service Company Inc.Medical oxygen 239.20
Quill Corporation Supplies 96.37
Rehn Code Consulting Services 114 Brick St 24,067.00
Robole Donna Reimburse for fitness room expenses 66.37
Roettger Welding Inc.Handi-cap ramp guard rail 7,500.00
Safe Assure Consultants Safety training 4,304.26
Safe Fast Inc Safety uniforms 874.26
Savage Anthony Refund inspection fee 150.00
SavATree Emerald Ash Borer injections 895.00
SHI International Corp Software 40,378.00
SiteOne Landscape Supply Supplies 139.71
Stillwater Glass Inc.Arched windows for council chambers 3,445.35
Stillwater Rotary Club Membership 380.00
Stillwater Towing Towing service 150.00
SW/WC Service Cooperatives Retiree Health Insurance 78,057.09
T.A. Schifsky and Sons Asphalt 1,614.03
Tait Graham E Reimburse for fuel for trip to APA Conference 20.06
Toll Gas and Welding Supply Cylinders 43.92
Tonrey Dana Refund Ramp vouchers 189.00
Thueson Matthew Reimburse for iPad 599.00
Turnblad Bill Reimburse for MNAPA Conference expenses 350.96
Universal Truck Equipment Equipment 42,398.52
US Bank Paying agent fees 1,350.00
Page 3
Verizon Wireless Wireless Service 3,279.04
Veterans Memorial Super Valu Parking 4,347.00
Voyant Communications Phone 554.01
Walmart Community Supplies 118.48
Wash. Cty Historical Society Contribution 1,250.00
Washington Conservation Distr Shared Educator 675.00
Waste Management of WI-MN Trash units 48,920.00
Water Works Plumbing & Heating LLC Test RPZs 2,100.00
Youth Service Bureau Contribution 2,625.00
Zoll Medical Corp RESQCPR system 1,400.47
REC CENTER
Ace Hardware Supplies 411.16
AE2S Construction (EIM)Dome Project 18,335.00
Arrow Sports Group Concession supplies 182.49
AT&T Mobility Cell phone 89.72
Canteen Refreshment Services Coffee & supplies for concessions 491.80
Cintas Corporation Mat cleaning service 154.50
Comcast Internet 109.85
Ebert Construction Dome Project 306,104.18
Menards Supplies 106.03
Metro Sheet Metal Inc Dome Project 17,033.50
Miller Excavating Dome Project 43,281.24
Pepsi Beverages Company Beverages for concessions 259.88
R&R Specialties Inc.Equipment repair supplies 278.60
Riedell Shoes Inc.Skates 643.44
St. Croix Boat and Packet Co.Arena billing 42,468.61
Twin Cities Dots & Pop Treats for concessions 802.56
LIBRARY
16 Wins Website Updates 320.00
Ace Hardware Janitorial Supplies 143.58
Brodart Co Materials 3,588.73
Cintas Corporation Towels & Rugs 72.24
Comcast Internet/WiFi 188.06
Culligan of Stillwater Water 54.45
Friends of the Stillwater Public Library Reimbursement - September Sales 311.50
Grainger Building Repair Supplies 68.75
Jacobsen Aurora Materials 16.27
Master Mechanical Inc.Leak Inspection 1,123.14
Menards Janitorial Supplies 71.82
Midwest Tape Materials 538.99
One23 Events LLC September 2019 Monthly Fee 2,000.00
Recorded Books Inc Materials 71.56
Page 4
SEPTEMBER MANUALS
Century Link Telephone 485.21
Oakgreen Villa LLC Long Lake Villas Project 248,227.28
Postmaster UB Certification & Newsletter Postage 2,006.61
Date: October 7, 2019
TO: Mayor and Council
FROM: Beth Wolf, City Clerk
SUBJECT: Railroad Lease
In December of 2000, the City of Stillwater assumed the Railroad’s interest in a lease with
St. Croix Boat and Packet. In 2019, the lease was $9,364.27. Staff is recommending a 2.2%
increase based on the consumer price index. The lease for 2020 would be $9,570.28.
ACTION REQUIRED:
If Council concurs with staff’s recommendation, council needs to pass a resolution
approving the 2020 railroad lease increase charged to St. Croix Boat & Packet in the
amount of $9,570.28.
RESOLUTION 2019‐
APPROVAL OF INCREASE TO RAILROAD LEASE PAYMENT
WHEREAS, the City of Stillwater assumed the Railroad's interest in a lease with St. Croix
Boat and Packet in 2019 was $9,364.27 and
WHEREAS, staff recommends a 2.2% increase for 2020 for a total of $9,570.28.
THEREFORE BE IT RESOLVED by the City Council of Stillwater, MN that the 2.2% increase
of the Lease payment, in the amount of $9,570.28 on the Railroad Lease between the City of
Stillwater and St. Croix Boat & Packet on file with the City Clerk, is hereby approved.
Adopted by the Stillwater City Council this 15th day of October 2019.
________________ _____________
Ted Kozlowski, Mayor
Attest:
______________________ _________
Beth Wolf, City Clerk
September 20, 2019
Beth Wolf
216 4th St N
Stillwater, MN 55082
In compliance with Article Xlll, Section 13‐12 of the City Chapter, I respectfully submit the financial
Statement of the Board of Water Commissioners for the year end December 31, 2018.
Robert Benson
General Manager
City of Stillwater
Board of Water Commissioners
Board of Water Commissioners
Stillwater Board of Water Commissioners
Stillwater, Minnesota
We have audited the financial statements of Stillwater Board of Water Commissioners (the
Commission) for the year ended December 31, 2018, and have issued our report thereon dated
June 25, 2019. We have previously communicated to you information about our responsibilities under
auditing standards generally accepted in the United States of America, as well as certain information
related to the planned scope and timing of our audit. Professional standards also require that we
communicate to you the following information related to our audit.
Significant audit findings
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Commission are described in Note 1 to the financial statements.
As described in Note 1, the Commission adopted Statement of Governmental Accounting Standards
(GASB) Statement No. 75, Accounting and Financial Reporting of Postemployment Benefits Other
Than Pension, in 2018. The Commission restated beginning net position as a result of implementing
this statement. In addition, the Commission also implemented (GASB) Statement No. 89, Accounting
for Interest Cost Incurred before the End of a Construction Period, in 2018. There were no significant
effects on the financial statements as a result of implementing this statement.
We noted no transactions entered into by the Commission during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected. The most sensitive estimates affecting the financial
statements were:
Management’s estimate of the useful lives of capital assets is based on authoritative guidance
and past experience. We evaluated the key factors and assumptions used to develop this
estimate in determining that it is reasonable in relation to the financial statements taken as a
whole.
Management’s estimate of other postemployment benefits payable is based on an actuarially
determined calculation, less actual payments incurred on behalf of retirees and an actuarially
determined estimate of implicit rate subsidy, which is the estimated increased cost of premiums
due to inclusion of retirees in the same plan as the Board of Water Commission’s active
employees.
Board of Water Commissioners
Stillwater Board of Water Commissioners
Page 2
Management’s estimate of the allowance for doubtful accounts is based on historical sales,
historical loss levels, and an analysis of the collectibility of individual accounts. We evaluated
the key factors and assumptions used to develop the allowance in determining that it is
reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the Commission’s proportionate share of PERA’s Net Pension
Liability is based on guidance from GASB Statement No. 68, GASB Statement No. 71, and the
plan’s allocation table. The plan’s allocation table allocates a portion of the plan’s net pension
liability based on the Commission’s contributions during the plan’s fiscal year as a percentage of
total contributions received for the related fiscal year by the plan.
Management’s estimate of the current portion of accrued vacation and sick leave is based on
historical use of the leave balances. We evaluated the key factors and assumptions used to
develop the current portion of compensated absences that it is reasonable in relation to the
financial statements taken as a whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected misstatements
The following material misstatements detected as a result of audit procedures were corrected by
management:
Adjust interest receivable to actual
Adjust special assessment revenue and receivables
Adjust amount due from the City
Adjust inventory, prepaid expense, accounts payable and accounts receivable to actual
Adjust other postemployment benefits liability
Adjust accrued wages, sick and vacation accruals, and longevity accruals to actual
Record depreciation expense and capital asset activity
Reclassify unearned revenue from accounts receivable
Disagreements with management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors’ report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the management
representation letter dated June 25, 2019.
Board of Water Commissioners
Stillwater Board of Water Commissioners
Page 3
Management consultations with other independent accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation
involves application of an accounting principle to the Commission’s financial statements or a
determination of the type of auditors’ opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. We were informed by management that there were no
consultations with other accountants.
Significant issues discussed with management prior to engagement
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to engagement as the Commission’s auditors.
However, these discussions occurred in the normal course of our professional relationship and our
responses were not a condition to our engagement.
We have provided a separate letter to you dated June 25, 2019, communicating internal control related
matters identified during the audit.
Other information in documents containing audited financial statements
With respect to the required supplementary information (RSI) accompanying the financial statements,
we made certain inquiries of management about the methods of preparing the RSI, including whether
the RSI has been measured and presented in accordance with prescribed guidelines, whether the
methods of measurement and preparation have been changed from the prior period and the reasons
for any such changes, and whether there were any significant assumptions or interpretations underlying
the measurement or presentation of the RSI. We compared the RSI for consistency with management’s
responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained
during the audit of the basic financial statements. Because these limited procedures do not provide
sufficient evidence, we did not express an opinion or provide any assurance on the RSI.
With respect to the supplementary schedules of operating expenses (the supplementary information)
accompanying the financial statements, on which we were engaged to report in relation to the financial
statements as a whole, we made certain inquiries of management and evaluated the form, content, and
methods of preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period or the reasons for such changes, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the
supplementary information to the underlying accounting records used to prepare the financial
statements or to the financial statements themselves. We have issued our report thereon dated
June 25, 2019.
Our auditors’ opinion, the audited financial statements, and the notes to financial statements should
only be used in their entirety. Inclusion of the audited financial statements in a document you prepare,
such as an annual report, should be done only with our prior approval and review of the document.
* * *
Board of Water Commissioners
Stillwater Board of Water Commissioners
Page 4
This information is intended solely for the use of the Board of Commissioners and management of
Stillwater Board of Water Commissioners and is not intended to be, and should not be, used by anyone
other than these specified parties.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 25, 2019
Board of Water Commissioners and Management
Stillwater Board of Water Commissioners
Stillwater, Minnesota
In planning and performing our audit of the financial statements of Stillwater Board of Water
Commissioners as of and for the year ended December 31, 2018, in accordance with auditing
standards generally accepted in the United States of America, we considered the Stillwater Board of
Water Commissioners’ internal control over financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Stillwater Board of Water Commissioners’ internal control. Accordingly, we do not express an opinion
on the effectiveness of the Stillwater Board of Water Commissioners’ internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that
were not identified. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to fraud or error may occur and not
be detected by such controls. However, as discussed below, we identified certain deficiencies in
internal control that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Stillwater Board of Water Commissioners’ financial statements will not be
prevented, or detected and corrected, on a timely basis.
Material weaknesses
We consider the following deficiencies in the Stillwater Board of Water Commissioners’ internal control
to be material weaknesses.
Limited Segregation of Duties
Due to the Board of Water Commissioners’ limited number of office personnel, segregation of the
accounting functions that is necessary to ensure adequate internal accounting control may not be
possible. This is normally accomplished by assigning duties so that 1) no one person handles a
transaction from beginning to end, and 2) incompatible duties between functions are not handled by
the same person. In addition, a review of these completed duties should be performed by an
individual independent of those functions. The available office staff of the Water Commission
precludes such a proper separation of functions. As a result, the Water Commission does not have
effective controls to safeguard assets, and prevent or detect misstatements. This condition
increases the possibility that errors or irregularities may occur and not be detected on a timely
basis.
Board of Water Commissioners and Management
Stillwater Board of Water Commissioners
Page 2
This is not unusual in an operation the size of the Board of Water Commissioners; however, the
Board of Water Commissioners should constantly be aware of this condition and realize that the
concentration of duties and responsibilities in a limited number of individuals is not desirable from
an accounting point of view. This area should be reviewed periodically and consideration given to
improving the segregation of duties. In making this review, it is most important to consider the
benefit derived as weighed against the cost of the improvements.
Management believes it is currently not economically feasible for the Board of Water
Commissioners to hire additional staff in order to adequately segregate all incompatible duties.
Therefore, the Board of Water Commissioners needs to be sufficiently involved in the oversight
process and controls and responsibilities should be reviewed periodically.
Material Audit Adjustments – Internal Control Over the Financial Reporting Process
Management is responsible for establishing and maintaining internal controls, including monitoring,
and for the fair presentation in the financial statements in accordance with U.S. generally accepted
accounting principles.
Management is responsible for the accuracy and completeness of all financial records and related
information. Their responsibilities include adjusting the financial statements to correct material
misstatements.
As part of the audit, we proposed the following journal entries, relating to accounts receivable,
accounts payable, inventory, prepaid expenses, accrued wages, vacation and sick leave accruals,
bonds payable, recording capital asset adjustments, and recording unearned revenue.
These entries relate to internal controls over the year-end closeout process. The absence of a
complete control procedure or process in this area is considered a material weakness because the
potential exists that a material misstatement of the financial statements could occur and not be
prevented or detected by the Board of Water Commissioner’s internal control processes.
Oversight of the Financial Reporting Process
Management is responsible for establishing and maintaining internal controls and for the fair
presentation of the financial position, results of operations, cash flows, and disclosures in the
financial statements, in conformity with U.S. generally accepted accounting principles (GAAP).
While it is acceptable to outsource various accounting functions, the responsibility for internal
control cannot be outsourced.
The Board of Water Commissioners engages CLA to assist in preparing its financial statements and
accompanying disclosures. However, as independent auditors, CLA cannot be considered part of
the Board of Water Commissioner’s internal control system. As part of its internal control over the
preparation of its financial statements, including Disclosures, the Board of Water Commissioners
has implemented a comprehensive review procedure to ensure the financial statements, including
disclosures, are complete and accurate. Such review procedures should be performed by an
individual possessing a thorough understanding of GAAP and knowledge of the Board of Water
Commissioners’ activities and operations.
Board of Water Commissioners and Management
Stillwater Board of Water Commissioners
Page 3
The Board of Water Commissioners’ personnel have not monitored recent accounting
developments to the extent necessary to enable them to prepare the Board of Water
Commissioners’ financial statements and related disclosures, to provide a high level of assurance
that potential omissions or other errors that are material would be identified and corrected on a
timely basis.
* * * * * *
This communication is intended solely for the information and use of management, the Board of
Commissioners, others within the Stillwater Board of Water Commissioners, and the City of Stillwater,
Minnesota and is not intended to be, and should not be, used by anyone other than these specified
parties.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 25, 2019
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEARS ENDED DECEMBER 31, 2018 AND 2017
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
TABLE OF CONTENTS
YEARS ENDED DECEMBER 31, 2018 AND 2017
INTRODUCTORY SECTION
ORGANIZATION SCHEDULE 1
INDEPENDENT AUDITORS’ REPORT 2
MANAGEMENT’S DISCUSSION AND ANALYSIS 4
BASIC FINANCIAL STATEMENTS
STATEMENTS OF NET POSITION 8
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 9
STATEMENTS OF CASH FLOWS 10
NOTES TO FINANCIAL STATEMENTS 12
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY 30
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT
PLAN 31
SCHEDULE OF THE COMMISSION’S PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY 32
SCHEDULE OF THE COMMISSION’S CONTRIBUTIONS 33
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY SCHEDULES OF OPERATING EXPENSES 34
OTHER REPORTS SECTION
INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL
COMPLIANCE 35
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
ORGANIZATION SCHEDULE
DECEMBER 31, 2018
(1)
Name Title Term Expires
Board of Commissioners
Steve Speedling President 2020
Karen Jansen Vice-President 2019
George Vania Member 2021
Treasurer
J. Thomas McCarty Appointed
Officers
Robert Benson Manager Appointed
(2)
INDEPENDENT AUDITORS’ REPORT
Board of Water Commissioners
Stillwater Board of Water Commissioners
Stillwater, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the Stillwater Board of Water
Commissioners (the Commission), a component unit of the City of Stillwater, as of and for the years
ended December 31, 2018 and 2017, and the related notes to the financial statements, which
collectively comprise the Commission’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
Commission’s preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Commissions’ internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Commission as of December 31, 2018 and 2017, and the results of its
operations and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Board of Water Commissioners
Stillwater Board of Water Commissioners
(3)
Emphasis of a Matter
For the year ended December 31, 2018, the Commission adopted GASB Statement No. 75, Accounting
and Financial Reporting for Postemployement Benefits Other Than Pensions. As a result of the
implementation of this standard, the Commission reported a restatement for the change in accounting
principle (see Note 12). Our auditors’ opinion was not modified with respect to the restatement.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of funding progress for postemployment benefit plan,
the schedule of the Commission’s proportionate share of net pension liability, and the schedule of the
Commission’s contributions as listed in the table of contents be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Board of Water Commissioners basic financial statements. The
supplementary fund schedules are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The supplementary fund schedules are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the supplementary fund schedules are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 25, 2019
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2018 AND 2017
(4)
This section of the Board of Water Commissioners’ (the Commission) annual financial report presents
the analysis of the Commission’s financial performance during the fiscal years ended December 31,
2018 and 2017. Please read it in conjunction with the financial statements, which follow this section.
The Management’s Discussion and Analysis (MD&A) is an element of Required Supplementary
Information specified in the Governmental Accounting Standard Board’s (GASB) Statement No. 34 –
Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local
Governments.
Overview of the Financial Statements
The Board of Water Commissioners is a component unit of the City of Stillwater, Minnesota, and is
responsible to account for the distribution of water services to the residents of the City. The annual
report of the Commission includes the basic financial statements, the independent auditors’ report,
notes that explain in more detail information in the financial statements and this management’s
discussion and analysis report. The report also includes supplementary information for operating
expenses.
Basic Financial Statements Required
The financial statements report information about the Commission using accounting methods similar to
those used by private sector companies. These statements offer short- and long-term financial
information about its activities.
The Statements of Net Position include all of the Commission’s assets, deferred outflows of
resources, liabilities, deferred inflows of resources, and net position and provides information about the
nature and amount of investments in various assets and obligations to the Commission’s creditors. It
also provides the basis for evaluating the capital structure, and determining the liquidity and financial
flexibility of the Commission.
The Statements of Revenues, Expenses, and Changes in Net Position accounts for all the current
year’s revenues and expenses. This statement measures the success of operations over the past year
and can be used to determine whether all costs are recovered through user fees and other charges.
This statement also measures the Commission’s profitability and credit worthiness.
The Statements of Cash Flows provides information about the Commission’s cash receipts and cash
payments during the reporting period. These statements report cash receipts, cash payments, and net
changes in cash resulting from operations, investing and financing activities, and reports on changes in
cash balances during the reporting period.
The financial statements also include notes that explain some of the information in the statements and
provide more detailed data.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2018 AND 2017
(5)
Condensed Financial Statements
To begin our analysis, a summary of the statement of net position is presented below.
2018 2017 2016
Net Utility Plant 11,173,370$ 11,619,910$ 11,709,701$
Other Long-Term Assets 150,000 150,000 300,000
Current Assets 2,769,853 2,461,391 2,367,394
Total Assets 14,093,223 14,231,301 14,377,095
Deferred Outflows of Resources 148,852 98,168 49,723
Total Assets and Deferred Outflows
of Resources 14,242,075$ 14,329,469$ 14,426,818$
Long-Term Liabilities 2,709,290$ 1,616,511$ 1,738,815$
Current Liabilities 332,851 380,960 291,556
Net Position 11,088,456 12,225,080 12,353,496
Total Liabilities and Net Position 14,130,597 14,222,551 14,383,867
Deferred Inflows of Resources 111,478 106,918 42,951
Total Liabilities, Net Position, and
Deferred Inflows of Resources 14,242,075$ 14,329,469$ 14,426,818$
Table A-1
Condensed Statement of Net Position
December 31,
A summary of the statements of revenues, expenses, and changes in net position is presented below.
2018 2017 2016
Operating Revenues 1,494,001$ 1,446,348$ 1,384,562$
Less: Operating Expenses (1,702,406) (2,051,285) (1,545,027)
Operating Loss (208,405) (604,937) (160,465)
Other Income 304,160 159,548 44,273
Capital Contributions - 42,296 -
Total Change in Net Position 95,755$ (403,093)$ (116,192)$
Years Ended December 31,
Table A-2
Condensed Statements of Revenues, Expenses and Changes in Net Position
Financial Statement Analysis
The 2018 decrease in total assets and deferred outflows of resources is due to current year
depreciation partially offset by an increase in cash due to operations and deferred outflows of
resources. The decrease in expenses is mainly due to a decrease in repairs and maintenance
expenses during 2018 as the water tower was repainted during 2017.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2018 AND 2017
(6)
Financial Statement Analysis (Continued)
The 2017 decrease in total assets and deferred outflows of resources is due to a decrease in cash due
to operations and deferred outflows of resources as well as a decrease in current and long-term
liabilities as debt is paid down. The increase in expenses is mainly due to an increase in repairs and
maintenance expenses during 2017.
Budgetary Highlights
The Commission adopts an annual Operating Budget. Because of its enterprise nature, the budgets are
not operated as statutory budgets. The budget results are reviewed monthly and are used as a financial
management tool.
A summary of the 2018 and 2017 Budget Analysis is presented in Table A-3.
Budget Actual Budget Actual
Operating Revenues 1,561,628$ 1,494,001$ 1,526,882$ 1,446,348$
Less: Operating Expenses (1,648,324) (1,702,406) (1,569,828) (2,051,285)
Operating Loss (86,696) (208,405) (42,946) (604,937)
Other Income 102,350 304,160 49,684 159,548
Capital Contributions from Developer - - - 42,296
Total Change in Net Position 15,654$ 95,755$ 6,738$ (403,093)$
Table A-3
Condensed Budget Analysis
Years Ended December 31,
2018 2017
Fiscal year 2018 operating revenues was less than budget due to less than anticipated overage
revenues. The operating expenses were over budget by $54,082 which is mainly due to repairs and
maintenance being more than anticipated with a large portion relating to the water tank painting.
Fiscal year 2017 operating revenues was less than budget due to less than anticipated overage
revenues. The operating expenses were over budget by $481,457 which is mainly due to repairs and
maintenance being more than anticipated with a large portion relating to the water tank painting.
Capital Asset and Long-Term Debt Activity
During the year ended December 31, 2018 and December 31, 2017, the Commission placed into
service capital asset additions to utility plant, property, and equipment in the amounts of $6,400 and
$253,496, respectively. Depreciation expense was $452,940 and $459,511 in fiscal years 2018 and
2017, respectively.
During 2013, the Commission issued Series 2013A General Obligation Water Revenue Bonds in the
amount of $1,425,000 to finance the Commission’s project to convert 100% of the water meters in the
City of Stillwater to an automatic meter reading system. The Commission did not issue any new long-
term debt during 2017 or 2018. The first principal payment was made during 2015 and will continue
through 2029. See Notes 2 and 7 for additional details related to capital assets and long-term debt
activity.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2018 AND 2017
(7)
Contact Information
This annual report is designed to provide a general overview of the Commission’s finances for citizens,
customers, and others. Questions concerning any of the information contained in t his report and
requests for additional information should be addressed to the Board of Water Commissioners, City of
Stillwater, 204 North Third Street, Stillwater, MN 55082 or by email at waterboard@ci.stillwater.mn.us
or by phone at (651) 439-6231.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
STATEMENTS OF NET POSITION
DECEMBER 31, 2018 AND 2017
See accompanying Notes to Basis Financial Statements.
(8)
2018 2017
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
NONCURRENT ASSETS
Utility Plant, Property, and Equipment
Non-Depreciable:
Land Use Rights 94,987$ 94,987$
Depreciable:
Equipment 642,879 642,879
Distribution System 19,091,742 19,085,342
Total 19,829,608 19,823,208
Less: Accumulated Depreciation 8,656,238 8,203,298
Net Utility Plant 11,173,370 11,619,910
OTHER ASSETS
Investments in Time Deposits, Designated 150,000 150,000
CURRENT ASSETS
Cash and Cash Equivalents 1,496,842 1,240,412
Investments in Time Deposits 700,000 700,000
Due from Primary Government 132,993 111,623
Accounts Receivable 287,016 274,166
Assessment Receivable 76,486 49,650
Accrued Interest Receivable 4,876 2,066
Inventories 46,717 58,038
Prepaid Expenses 24,923 25,436
Total Current Assets 2,769,853 2,461,391
Total Assets 14,093,223 14,231,301
DEFERRED OUTFLOWS OF RESOURCES
Pension Related 82,400 98,168
OPEB Related 66,452 -
Total Deferred Outflows of Resources 148,852 98,168
Total Assets and Deferred Outflows of Resources 14,242,075$ 14,329,469$
NET POSITION, LIABILITIES, AND DEFERRED INFLOWS OF RESOURCES
NET POSITION
Net Investment in Capital Assets 10,047,017$ 10,368,608$
Unrestricted 1,041,439 1,856,472
Total Net Position 11,088,456 12,225,080
LONG-TERM LIABILITIES
Compensated Absences 73,777 78,701
Revenue Bonds Payable 1,041,353 1,129,489
OPEB Liability 1,228,019 18,901
Net Pension Liability 366,141 389,420
Total Long-Term Liabilities 2,709,290 1,616,511
CURRENT LIABILITIES
Accounts Payable 54,351 130,731
Due to Primary Government 9,261 40,226
Unearned Revenue 39,286 36,564
Accrued Expenses 25,254 25,963
Accrued Interest Payable 13,656 14,364
Current Portion of Compensated Absences 39,591 48,112
Current Portion of Revenue Bonds Payable 85,000 85,000
Current Portion of OPEB Liability 66,452 -
Total Current Liabilities 332,851 380,960
Total Liabilities 3,042,141 1,997,471
DEFERRED INFLOWS OF RESOURCES
Pension Related 111,478 106,918
Total Net Position, Liabilities, and Deferred Inflows of Resources 14,242,075$ 14,329,469$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEARS ENDED DECEMBER 31, 2018 AND 2017
See accompanying Notes to Basis Financial Statements.
(9)
2018 2017
OPERATING REVENUES
Water Sales 1,425,079$ 1,394,833$
Other Operating Revenues 68,922 51,515
Total Operating Revenues 1,494,001 1,446,348
OPERATING EXPENSES
Production and Distribution 728,957 1,040,383
Service Customer Expenses 31,564 29,998
Administrative and General Expenses 488,945 521,393
Depreciation 452,940 459,511
Total Operating Expenses 1,702,406 2,051,285
OPERATING LOSS (208,405) (604,937)
NONOPERATING REVENUES (EXPENSES)
Interest Income 9,726 4,842
Sale of Scrap or Other Materials 8,978 7,977
Water Access Charges 202,229 78,072
Meter Rental Charges 14,310 15,176
Penalty Charges 30,189 26,296
Miscellaneous 19,567 58,525
Special Assessments 48,800 -
Interest Expense (29,639) (31,340)
Total Nonoperating Revenues (Expenses)304,160 159,548
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 95,755 (445,389)
Capital Contributions from Developer - 42,296
CHANGE IN NET POSITION 95,755 (403,093)
Net Position - Beginning of Year 12,225,080 12,628,173
Restatement - Change in Accounting Principle (See Note 12)(1,232,379) -
Net Position - Beginning of Year, as Restated 10,992,701 12,628,173
NET POSITION - END OF YEAR 11,088,456$ 12,225,080$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018 AND 2017
See accompanying Notes to Basis Financial Statements.
(10)
2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 1,737,776$ 1,623,912$
Cash Paid to Employees (444,718) (430,689)
Cash Paid to Suppliers (940,625) (1,149,195)
Net Cash Provided by Operating Activities 352,433 44,028
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Special Assessments 21,964 606
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Construction and Acquisition of Utility Plant, Property,
and Equipment (6,400) (253,471)
Principal Payments on Revenue Bonds (85,000) (85,000)
Interest Paid (33,483) (35,184)
Net Cash Used by Capital and Related Financing Activities (124,883) (373,655)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investments (600,000) (500,000)
Redemption of Investments 600,000 500,000
Interest Received 6,916 4,832
Net Cash Provided by Investing Activities 6,916 4,832
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 256,430 (324,189)
Cash and Cash Equivalents - Beginning of Year 1,240,412 1,564,601
CASH AND CASH EQUIVALENTS - END OF YEAR 1,496,842$ 1,240,412$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED DECEMBER 31, 2018 AND 2017
See accompanying Notes to Basis Financial Statements.
(11)
2018 2017
RECONCILIATION OF OPERATING LOSS TO
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Loss (208,405)$ (604,937)$
Adjustments to Reconcile Operating Loss to
Net Cash Provided by Operating Activities:
Depreciation and Amortization 452,940 459,511
Cash Received from Other Nonoperating Income 275,273 181,121
(Increase) Decrease in Assets:
Accounts Receivable (12,850)15,492
Due from Primary Government (21,370)(17,139)
Inventories 11,321 693
Prepaid Expenses 513 609
Deferred Outflows of Resources (50,684)129,310
Increase (Decrease) in Liabilities:
Accounts Payable (76,380)34,104
Due to Primary Government (30,965)(68,988)
Unearned Revenue 2,722 (1,910)
Accrued Expenses (709)3,645
OPEB Liability 43,191 15,571
Deferred Inflows of Resources 4,560 38,195
Net Pension Liability (23,279)(162,706)
Compensated Absences (13,445)21,457
Net Cash Provided by Operating Activities 352,433$ 44,028$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
Developer and City Capital Asset Contributions -$ 42,296$
Capital Assets on Account -$ 36,813$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(12)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Operation
The Board of Water Commissioners (the Commission) is a component unit of the City of
Stillwater, Minnesota, created and prescribed by the City Charter. The purpose of the
Commission is to account for the distribution of water services to the residents of the City.
The City Council appoints members of the Commission and maintains annual budgetary
controls over commission-delegated financial activities. The financial statements presented
here are also included in the basic financial statements of the City of Stillwater.
The accounting policies of the Board of Water Commissioners conform to accounting
principles generally accepted in the United States of America (GAAP).
Financial Reporting Entity
The Commission’s basic financial statements include all funds, departments, agencies,
boards, commissions, and other organizations over which Commission officials exercise
oversight responsibility.
Component units are legally separate entities for which the Commission (primary
government) is financially accountable, or for which the exclusion of the component unit
would render the financial statements of the Primary Government misleading. The criteria
used to determine if the Primary Government is financially accountable for a component unit
include whether or not the Primary Government appoints the voting majority of the potential
component unit’s governing body, is able to impose its will on the potential component unit,
is in a relationship of financial benefit or burden with the potential component unit, or is
fiscally depended upon by the potential component unit.
Based on these criteria, there are no organizations considered to be component units of the
Commission.
Measurement Focus and Basis of Accounting
The accrual basis of accounting is used by the Commission. Under this method, revenues
are recorded when earned and expenses are recorded when the related fund liability is
incurred.
The financial statements of the Commission have been prepared in conformity with GAAP
as applied to governmental units. The Governmental Accounting Standards Board (GASB)
is the accepted standard setting body for establishing governmental accounting and
financial reporting principles. The GASB has issued a codification of governmental
accounting and financial reporting standards. This codification and subsequent GASB
pronouncements are recognized as GAAP for state and local governments.
The Commission distinguishes operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with principal ongoing operations.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(13)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Utility Plant, Property, and Equipment
Utility plant, property, and equipment are recorded at cost, or in the case of contributions, at
acquisition value. Depreciation is calculated using the straight-line method over the assets’
estimated useful lives, ranging from 5 to 50 years.
Cash and Cash Equivalents
For the purposes of the statements of cash flows, cash equivalents are defined as short-
term, highly liquid investments that are both:
A. Readily convertible to known amounts of cash, or
B. So near their maturity that they present insignificant risk of changes in value because
of changes in interest rates.
The Commission’s policy considers cash equivalents to be those that meet the above
criteria and have original maturities of three months or less.
Cash and cash equivalents consist of checking and savings accounts and cash on hand.
Accounts Receivable
It is management's judgment that losses from uncollectible customer receivables, if any, will
be immaterial; therefore, no allowance for doubtful accounts is reflected in the financial
statements. All accounts receivable are uncollateralized.
Inventories
Inventory is stated at the lower of cost (first-in, first-out method) or market.
Net Position
Net position represents the difference between assets and deferred outflows of resources
and liabilities and deferred inflows of resources in the financial statements. The net
investment in capital assets consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balance of any long-term debt used to build or acquire the
capital assets. Net position is reported as restricted in the financial statement when there
are limitations imposed on their use through external restrictions imposed by creditors,
grantors, laws, or regulations of other governments.
Deferred Outflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period and so will not be recognized as an outflow of resources (expenses) until then.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(14)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred Inflows of Resources
In addition to liabilities, the financial statements will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so
will not be recognized as an inflow of resources (revenue) until that time.
Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources,
and pension expense, information about the fiduciary net position of the Public Employees
Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net
position have been determined on the same basis as they are reported by PERA except that
PERA’s fiscal year-end is June 30. For this purpose, plan contributions are recognized as of
employer payroll paid dates and benefit payments and refunds are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
Other Postemployment Benefits (OPEB) Obligation
In accordance with the provisions of GASB Statement No. 75, Accounting and Financial
Reporting for Post-employment Benefits Other Than Pensions, an actuarial valuation is
required to be computed and reported for the Commission’s post-employment health
insurance benefits provided to eligible employees through the Commission’s Other Post-
Employment Benefits Plan. OPEB is reported as an expenses on a pay-as you –go basis
and is accrued as it is earned. The net OPEB liability and corresponding expense for are
recorded for the enterprise fund.
Change in Accounting Principles
In 2018, the Commission implemented Governmental Accounting Standards (GASB)
Statement No. 75, Accounting and Financial Reporting of Postemployment Benefits other
Than Pension, in 2018. The Commission restated beginning net position to implement this
statement. See Note 11 for more details.
The Commission also implemented Governmental Accounting Standards Board Statement
No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, in
2018. With the adoption of this Statement, the Commission is no longer capitalizing interest
costs.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(15)
NOTE 2 DETAIL OF UTILITY PLANT, PROPERTY, AND EQUIPMENT
The following list includes the major classes of capital assets:
2018 2017
Capital Assets, Not Being Depreciated:
Land 94,987$ 94,987$
Capital Assets, Being Depreciated:
Equipment:
Trucks 142,672 142,672
Office Furniture and Equipment 139,699 139,699
Shop Equipment 360,508 360,508
Distribution System:
Water Stations and Reservoir 4,516,132 4,509,732
Building and Vault 135,090 135,090
Standpipes 720,437 720,437
Extensions 12,076,239 12,076,239
Meters in Service 1,643,844 1,643,844
Total Capital Assets 19,829,608 19,823,208
Less: Accumulated Depreciation 8,656,238 8,203,298
Net Capital Assets 11,173,370$ 11,619,910$
Changes in capital assets during 2018 are as follows:
Balance Balance
December 31,December 31,
2017 Additions Deletions 2018
Capital Assets, Not
Being Depreciated:
Land Use Rights 94,987$ -$ -$ 94,987$
Capital Assets, Being
Depreciated:
Equipment 642,879 - - 642,879
Distribution System 19,085,342 6,400 - 19,091,742
Total Capital Assets, Being
Depreciated 19,728,221 6,400 - 19,734,621
Accumulated Depreciation for:
Equipment 474,539 22,948 - 497,487
Distribution System 7,728,759 429,992 - 8,158,751
Total Accumulated
Depreciation 8,203,298 452,940 - 8,656,238
Total Capital Assets, Being
Depreciated, Net 11,524,923 (446,540) - 11,078,383
Net Capital Assets 11,619,910$ (446,540)$ -$ 11,173,370$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(16)
NOTE 2 DETAIL OF UTILITY PLANT, PROPERTY, AND EQUIPMENT (CONTINUED)
Changes in capital assets during 2017 are as follows:
Balance Balance
December 31,December 31,
2016 Additions Deletions 2017
Capital Assets, Not
Being Depreciated:
Land 94,987$ -$ -$ 94,987$
Capital Assets, Being
Depreciated:
Equipment 631,569 42,271 30,961 642,879
Distribution System 18,831,846 253,496 - 19,085,342
Total Capital Assets, Being
Depreciated 19,463,415 295,767 30,961 19,728,221
Accumulated Depreciation for:
Equipment 477,424 28,076 30,961 474,539
Distribution System 7,297,324 431,435 - 7,728,759
Total Accumulated
Depreciation 7,774,748 459,511 30,961 8,203,298
Total Capital Assets, Being
Depreciated, Net 11,688,667 (163,744) - 11,524,923
Net Capital Assets 11,783,654$ (163,744)$ -$ 11,619,910$
NOTE 3 INVESTMENTS DESIGNATED BY THE BOARD
Investments designated by the Board for specific purposes were as follows:
2018 2017
Designated for Future Construction 150,000$ 150,000$
NOTE 4 DEPOSITS
In accordance with Minnesota Statutes, the Commission maintains deposits at financial
institutions which are authorized by the Commission’s Board. All such depositories are
members of the Federal Reserve System. Minnesota Statutes require that all deposits be
protected by insurance, surety bond, or collateral.
Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the
Commission’s deposits may not be returned to it. The Commission does not have a deposit
policy for custodial credit risk and follows Minnesota Statutes for deposits.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(17)
NOTE 4 DEPOSITS (CONTINUED)
Minnesota Statutes require that all deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not
covered by insurance, corporate surety bonds, or collateral.
Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of a
U.S. government agency; general obligations of a state or local government rated “A” or
better; revenue obligations of a state or local government rated “AA” or better; irrevocable
standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by
a federal agency. Minnesota Statutes require securities pledged as collateral be held in
safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust
departments of a commercial bank or other financial institution not owned or controlled by
the depository.
The Commission’s deposits in banks at December 31, 2018 were entirely covered by federal
depository insurance or by surety bonds and collateral in accordance with Minnesota
Statutes.
Carrying Bank
Balance at December 31, 2018 Amount Balance
Cash and Cash Equivalents 1,496,842$ 1,508,612$
Investments in Time Deposits 700,000 700,000
Investments in Time Deposits - Designated 150,000 146,884
Total 2,346,842$ 2,355,496$
Carrying Bank
Balance at December 31, 2017 Amount Balance
Cash and Cash Equivalents 1,240,412$ 1,278,079$
Investments in Time Deposits 700,000 700,000
Investments in Time Deposits - Designated 150,000 146,884
Total 2,090,412$ 2,124,963$
NOTE 5 INVENTORIES
The major classes of inventory consist of the following at December 31, 2018 and 2017:
2018 2017
Pipe and Fittings 21,777$ 29,070$
Brass Goods 10,466 8,754
Tools and Supplies 7,498 12,994
Meters 6,976 7,220
Total 46,717$ 58,038$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(18)
NOTE 6 COMPENSATED ABSENCES
The Commission records a long-term liability for employee compensated absences
consisting of vested sick pay and a current liability consisting of vested vacation and
longevity. Employees earn vacation in arrears and may carry over five vacation days and
100 sick days. Longevity is a calculation based on the number of years of service and the
current rate of pay. It accrues monthly and is paid out on December 1 for the year ending
November 30 of the same year. Employees are compensated for sick days in excess of 100
days at year-end and for all vested sick days, vacation days, and longevity upon termination.
As of December 31, 2018 and 2017, vested vacation pay benefits payable were $39,591-
and $48,112, respectively, and vested longevity pay benefits payable were $-0- and $-0-,
respectively. The changes in compensated absences during 2018 and 2017 are as follows:
Balance Balance Due Within
12/31/2017 Additions Deletions 12/31/2018 One Year
Compensated Absences 126,813$ 31,798$ 45,243$ 113,368$ 39,591$
Balance Balance Due Within
12/31/2016 Additions Deletions 12/31/2017 One Year
Compensated Absences 105,356$ 74,986$ 53,529$ 126,813$ 48,112$
NOTE 7 REVENUE BONDS PAYABLE
Final
Issue Maturity Interest Original Payable
Date Date Rate Issue 12/31/2018
General Obligation Bonds:
2013A Water Revenue Bonds 07/01/13 02/01/29 2.00% - 3.50%1,425,000$ 1,095,000$
Changes in long-term debt for the years ended December 31, 2018 and 2017 are as follows:
Balance Balance Due Within
12/31/2017 Additions Deletions 12/31/2018 One Year
General Obligation Bonds:
2013A Water Revenue Bonds 1,180,000$ -$ 85,000$ 1,095,000$ 85,000$
Unamortized Bond Premiums 34,489 - 3,135 31,354 -
Net General Obligation Bonds 1,214,489$ -$ 88,135$ 1,126,354$ 85,000$
Balance Balance Due Within
12/31/2016 Additions Deletions 12/31/2017 One Year
General Obligation Bonds:
2013A Water Revenue Bonds 1,265,000$ -$ 85,000$ 1,180,000$ 85,000$
Unamortized Bond Premiums 37,624 - 3,135 34,489 -
Net General Obligation Bonds 1,302,624$ -$ 88,135$ 1,214,489$ 85,000$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(19)
NOTE 7 REVENUE BONDS PAYABLE (CONTINUED)
The General Obligation Water Revenue Bonds, Series 2013A dated July 1, 2013, were
issued to finance a water meter project in the City of Stillwater, consisting of the replacement
of all of the City’s water meters and the conversion to an automatic meter reading system.
Bond principal is payable in annual installments ranging from $80,000 to $115,000 through
February 2029, together with interest ranging from 2.0% to 3.5%.
Future maturities of the revenue bonds are as follows:
Year Ending December 31,Principal Interest Total
2019 85,000$ 31,925$ 116,925$
2020 90,000 30,175 120,175
2021 90,000 27,925 117,925
2022 95,000 25,150 120,150
2023 95,000 22,300 117,300
2024-2028 525,000 64,800 589,800
2029 115,000 2,013 117,013
Total 1,095,000$ 204,288$ 1,299,288$
NOTE 8 PENSION PLANS
Pension Description
The Commission participates in the following cost-sharing multiple-employer defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota
(PERA). PERA’s defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit
pension plans are tax-qualified plans under Section 401(a) of the Internal Revenue Code.
All full-time and certain part-time employees of the Commission are covered by the General
Employees Retirement Fund (GERF). GERF members belong to either the Coordinated
Plan, and are covered by Social Security.
Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established
by state statute and can only be modified by the state legislature. Vested, terminated
employees who are entitled to benefits, but are not receiving them yet, are bound by the
provisions in effect at the time they last terminated their public service.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(20)
NOTE 8 PENSION PLANS (CONTINUED)
Benefits Provided (Continued)
General Employees Plan benefits are based on a member’s highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERA’s Coordinated Plan members.
Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas.
Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual
rate for Coordinated members is 1.2% of average salary for each of the first 10 years of
service and 1.7% of average salary for each additional year. Under Method 2, the accrual
rate for Coordinated members is 1.7% of average salary for all years of service. For
members hired prior to July 1, 1989, a full annuity is available when age plus years of
service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. Increases are related to
the funding ratio of the plan. If the General Employees Plan is at least 90% funded for two
consecutive years, benefit recipients are given a 2.5% increase. If the plan has not
exceeded 90% funded, or have fallen below 80%, benefit recipients are given a 1%
increase. A benefit recipient who has been receiving a benefit for at least 12 full months as
of June 30, will receive a full increase. Members receiving benefits for at least one month
but less than 12 full months as of June 30 will receive a pro rata increase
Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
Contribution rates can only be modified by the state legislature.
Coordinated Plan members were required to contribute 6.50% of their annual covered salary
in calendar year 2018. And the Commission was required to contribute 7.50% for
Coordinated Plan members. The Commission’s contributions to the G ERF for the year
ended December 31, 2018, and 2017 were $30,084 and $33,171 respectively. The
Commission’s contributions were equal to the required contributions as set by state statute.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(21)
NOTE 8 PENSION PLANS (CONTINUED)
Pension Costs
At December 31, 2018 and 2017, the Commission reported a liability of $366,141 and
$389,420, respectively for its proportionate share of the GERF’s net pension liability. The
Commission’s net pension liability reflected a reduction due to the state of Minnesota’s
contribution of $16 million to the fund in 2018. The state of Minnesota is considered a non-
employer contributing entity and the state’s contribution meets the definition of a special
funding situation. The state of Minnesota’s proportionate share of the net pension liability
associated with the Commission’s totaled $12,157. The net pension liability was measured
as of June 30, 2018, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of that date. The Commission’s proportion of
the net pension liability was based on the Commission’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2017, through
June 30, 2018, relative to the total employer contributions received from all of PERA’s
participating employers. At June 30, 2018, the Commission’s proportion was .0066%, which
was an increase of .0005% from its proportion as measured at June 30, 2017.
For the year ended December 31, 2018 and 2017, the Commission recognized pension
expense of $26,971 and $37,908, respectively for its proportionate share of the GERF’s
pension expense.
At December 31, 2018 and 2017, the Commission reported its proportionate share of the
GERF’s deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Description
Deferred
Outflows of
Deferred
Inflows of
Differences Between Expected and Actual Economic
Experience 9,691$ 10,679$
Changes in Actuarial Assumptions 34,976 41,140
Net Difference Between Projected and Actual Earnings
on Pension Plan Investments - 37,414
Changes in Proportion and Differences Between
Commission Contributions and Proportionate Share
of Contributions 22,962 22,245
Commission Contributions Subsequent to the
Measurement Date 14,771 -
Total 82,400$ 111,478$
2018
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(22)
NOTE 8 PENSION PLANS (CONTINUED)
Pension Costs (Continued)
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences Between Expected and Actual Economic
Experience 12,834$ 25,052$
Changes in Actuarial Assumptions 64,652 39,039
Net Difference Between Projected and Actual Earnings
on Pension Plan Investments 2,515 -
Changes in Proportion and Differences Between
Commission Contributions and Proportionate Share
of Contributions - 42,827
Commission Contributions Subsequent to the
Measurement Date 18,167 -
Total 98,168$ 106,918$
2017
$14,771 is reported as deferred outflows of resources related to pensions resulting from the
Commission’s contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2019. Other amounts
reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Pension Expense
Year Ending December 31,Amount
2019 7,882$
2020 (22,034)
2021 (22,055)
2022 (7,642)
Actuarial Assumptions
The total pension liability in the June 30, 2018, actuarial valuation was determined using the
following actuarial assumptions:
Assumptions GERF
Inflation 2.50% per Year
Salary Increases 3.25% per Year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members,
retirees, survivors, and disabilitants were based on RP-2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases
for retirees are assumed to be: 1.25% per year for all future years for the General
Employees Plan.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(23)
NOTE 8 PENSION PLANS (CONTINUED)
Actuarial Assumptions (Continued)
Actuarial assumptions used in the June 30, 2018, valuation were based on the results of
actuarial experience studies. The most recent six-year experience study in the General
Employees Plan was completed in 2015.
The following changes in actuarial assumptions occurred in 2018 for the General Employees
Fund:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed post-retirement benefit increase was changed from 1.0% per year
through 2044 and 2.50% per year thereafter to 1.25% per year.
State Board of Investment, which manages the investments of PERA, prepares an analysis
of the reasonableness of the long-term expected rate of return on a regular basis using a
building-block method in which best estimate ranges of expected future rates of return are
developed for each major asset class. These ranges are combined to produce an expected
long-term rate of return by weighting the expected future rates of return by the target asset
allocation percentages.
The target allocation and best estimates of arithmetic real rates of return for each major
asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Domestic Stocks 36 %5.10
International Stocks 17 5.30
Bonds 20 0.75
Alternative Assets 25 5.90
Cash 2 0.00
Total 100 %
Discount Rate
The discount rate used to measure the total pension liability in 2018 was 7.5%. The
projection of cash flows used to determine the discount rate assumed that contributions from
plan members and employers will be made at rates set in Minnesota Statutes. Based on
these assumptions, the fiduciary net positions of the General Employees Fund, the Police
and Fire Fund, and the Correctional Fund were projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(24)
NOTE 8 PENSION PLANS (CONTINUED)
Pension Liability Sensitivity
The following presents the Commission’s proportionate share of the net pension liability for
all plans it participates in, calculated using the discount rate disclosed in the preceding
paragraph, as well as what the Commission’s proportionate share of the net pension liability
would be if it were calculated using a discount rate one percentage point lower or one
percentage point higher than the current discount rate:
Current 1% Increase
Discount in Discount
Description 1% Decrease Rate Rate
June 30, 2018
GERF Discount Rate 6.50%7.50%8.50%
Commission's Proportionate Share of the
GERF Net Pension Liability 595,026$ 366,141$ 177,203$
June 30, 2017
GERF Discount Rate 6.50%7.50%8.50%
Commission's Proportionate Share of the
GERF Net Pension Liability 604,019$ 389,420$ 213,731$
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a
separately issued PERA financial report that includes financial statements and required
supplementary information. That report may be obtained on the Internet at www.mnpera.org;
by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088; or by calling
(651) 296-7460 or 1-800-652-9026.
NOTE 9 RISK MANAGEMENT
The Commission is exposed to various risks of loss related to torts; theft of, damage to, or
destruction of assets; error or omissions; injuries to employees or natural disasters for which
the Commission carries commercial insurance. There have been no significant reductions in
insurance coverage from the prior year. Settlement amounts have not exceeded insurance
coverage for the current year or the three prior years.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(25)
NOTE 10 OTHER POSTEMPLOYMENT BENEFIT PLAN YEAR ENDED 2018
At December 31, 2018, the Commission adopted Governmental Accounting Standards
Boards (GASB) Statement No. 75, Accounting and Financial Reporting for
Postemployement Benefits Other than Pensions. The Water Commission engaged an
actuary to determine the Water Commission’s liability for postemployment healthcare
benefits other than pensions as of December 31, 2018.
A. Plan Description
The Water Commission provides benefits for retirees as required by Minnesota Statutes
§471.61 subdivision 2b. Active employees, who started before January 1, 1989 and
retire from the Water Commission when over age 55 and satisfaction of the rule of 90,
are eligible for free medical coverage for themselves and their families for life. Active
employees, who started after January 1, 1989 and retire the Water Commission when
over age 55 and satisfaction of the rule of 90, may continue coverage with respect to
both themselves and their eligible dependent(s) under the Water Commission’s health
benefits program until age 65. Pursuant to the provisions of the plan, retirees are
required to pay the total premium cost. As of December 31, 2018, there were six active
participants and 10 retired participants receiving benefits from the Water Commission’s
health plans.
B. Contributions and Funding Policy
The Water Commission funds its OPEB obligation on a pay as you go basis. For fiscal
years 2018 and 2017, the Water Commission contributed $66,258 and $67,122 to the
plan, respectively.
C. Total OPEB Liability
The Commission’s total OPEB liability was measured as of January 1, 2018 and was
determined by an actuarial valuation as of January 1, 2017.
Actuarial Assumptions
The total OPEB liability in the January 1, 2017 actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement,
unless otherwise specified:
Valuation date:January 1, 2017
Measurement date:January 1, 2018
Methods and assumptions used to determine the contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of pay
Amortization period Average of expected remaining service on a blosed basis for
differences between expected and actual experience and
assumption changes.
Inflation 2.50%
Healthcare cost trend rate 6.25% for 2018 grading to 5.00 over 5 years
Salary increases 3.00%
Discount rate 3.30% (20-year municipal bond index)
Retirement age Age 55, Rule of 90 20% increasing to 100% over 10 years,
Note Rule of 90 5% increasing to 100% over 10 years
Mortality RP-2014 with MP-2016 generational improvements
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(26)
NOTE 10 OTHER POSTEMPLOYMENT BENEFIT PLAN YEAR ENDED 2018 (CONTINUED)
D. Discount Rate
The discount rate used to measure the total OPEB liability was 3.30 percent. The
discount rate is based on the estimated yield of 20-Year AA-rate municipal bonds.
E. Changes in the Total OPEB Liability
The details of the changes in the Commission’s total OPEB Liability were as follows for
2018:
Increase
(Decrease)
Total OPEB
Liability
Balances at 12/31/17 1,318,402$
Changes for the Year:
Service Cost 757
Interest 42,434
Differences Between Expected and
Actual Experience -
Contributions - Employer -
Net Investment Income -
Benefit Payments (67,122)
Changes in Assumptions -
Net Changes (23,931)
Balances at 12/31/18 1,294,471$
Sensitivity of the total OPEB liability to changes in the discount rate and healthcare cost
trend rates. The following presents the total OPEB liability of the Commission, as well as
what the Commission’s total OPEB liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (2.30 percent) or 1-percentage-point
higher (4.30 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(2.30)%(3.30)%(4.30)%
Net OPEB Liability (Asset)1,442,199$ 1,294,471$ 1,169,333$
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(27)
NOTE 10 OTHER POSTEMPLOYMENT BENEFIT PLAN YEAR ENDED 2018 (CONTINUED)
E. Changes in the Total OPEB Liability (Continued)
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The
following presents the total OPEB liability of the Commission, as well as what the
Commission's total OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1-percentage-point lower (5.25 percent decreasing to 4 percent over
5 years) or 1-percentage-point higher (7.25 percent decreasing to 6 percent over 5
years) than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(5.25%(6.25%(7.25%
Decreasing to 4%Decreasing to 5%Decreasing to 6%
over 5 years)over 5 years)over 5 years)
Net OPEB liability (asset)1,164,463$ 1,294,471$ 1,445,126$
F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
For the year ended December 31, 2018, the Commission recognized OPEB expense of
$62,092. At December 31, 2018, the Commission reported deferred outflows of
resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Contributions Between Measurement Date and
Reporting 66,452$ -$
NOTE 11 OTHER POSTEMPLOYMENT BENEFIT PLAN YEAR ENDED 2017
A. Annual OPEB Cost and Net OPEB Obligation
The Water Commission’s annual other postemployment benefit (OPEB) cost (expense)
is calculated based on the annual required contribution (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities over a period not to
exceed 30 years.
The following table shows the components of the Water Commission’s annual OPEB
cost for the year, the amount actually paid from the plan, and changes in the Water
Commission’s net OPEB obligation.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(28)
NOTE 11 OTHER POSTEMPLOYMENT BENEFIT PLAN YEAR ENDED 2017 (CONTINUED)
A. Annual OPEB Cost and Net OPEB Obligation (Continued)
2017
Annual Required Contribution 82,755$
Interest on Net OPEB Obligation 116
Adjustment to Annual Required Contribution 178
Annual OPEB Cost (Expense)82,693
Contributions Made (67,122)
Decrease in Net OPEB Obligation 15,571
Net OPEB Obligation - Beginning of Year 3,330
Net OPEB Obligation - End of Year 18,901$
The Water Commission’s annual OPEB cost, the percentage of the annual OPEB cost
contributed to the plan, and the net OPEB obligation for 2018:
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEB Cost OPEB
Ended Cost Contributed Obligation
12/31/2015 89,446$ 82.4%(8,291)$
12/31/2016 89,183 90.7%3,330
12/31/2017 82,694 82.9%18,902
B. Funded Status and Funding Progress
As of January 1, 2017, the most recent actuarial valuation date, the Water Commission’s
unfunded actuarial accrued liability (UAAL) was $1,291,955. The annual payroll for
active employees covered by the plan in the actuarial valuation was $372,863 for a ratio
of UAAL to covered payroll of 346.5%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and
healthcare cost trends. Amounts determined regarding the funded status of the plan and
the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multiyear tren d
information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits.
C. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point.
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
(29)
NOTE 11 OTHER POSTEMPLOYMENT BENEFIT PLAN YEAR ENDED 2017 (CONTINUED)
C. Actuarial Methods and Assumptions (Continued)
The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2017 actuarial valuation, the entry age normal cost method was used.
The actuarial assumptions included a 3.5% investment rate of return (net of
administrative expenses), which is a blended rate of the expected long-term investment
returns on plan assets and on the employer’s own investments calculated based on the
funded level of the plan at the valuation date. The initial healthcare trend rate was 6.5%,
reduced by decrements to an ultimate rate of 5% after ten years. The UAAL is being
amortized as a level percentage of projected payrolls on an open basis. The remaining
amortization period at December 31, 2017 was 21 years.
NOTE 12 PRIOR PERIOD RESTATEMENT
During the fiscal year ended December 31, 2018, the Commission adopted GASB
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
than Pensions. This pronouncement requires the restatement of the December 31, 2017 net
position as follows:
Business-Type
Activities
Net Position, December 31, 2017, 12,225,080$
as Previously Reported
Cumulative Affect of Implementation of GASB
Statement No. 75, Accounting and Financial
Reporting of Postemployment Benefits
Other Than Pensions (1,232,379)
Net Position, December 31, 2017, as Restated 10,992,701$
REQUIRED SUPPLEMENTARY INFORMATION
STILLWATER BOARD OF WATER COMMISSIONERS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY
DECEMBER 31, 2018
(30)
2018
Total OPEB Liability
Service Cost 757$
Interest 42,434
Changes of Benefit Terms -
Difference Between Expected and Actual Experience -
Changes of Assumptions -
Benefit Payments (67,122)
Net Change in Total OPEB Liability (23,931)
Total OPEB Liability - Beginning 1,318,402
Total OPEB Liability - Ending 1,294,471$
Total OPEB Liability 1,294,471$
Covered Employee Payroll 384,049$
Commission's Total OPEB Liability as a Percentage of the
Covered Employee Payroll 337.06%
* Ten years of data will be presented as it becomes available.
STILLWATER BOARD OF WATER COMMISSIONERS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN
DECEMBER 31, 2018
(31)
Actuarial UAAL as a
Actuarial Accrued Percentage
Actuarial Value of Liability Unfunded Funded Covered of Covered
Valuation Assets (AAL)AAL Ratio Payroll Payroll
Date (a)(b)(b-a)(a/b)(c )((b-a)/c)
1/1/2011 -$ 1,274,723$ 1,274,723$ - 372,490$ 342.2%
1/1/2014 - 1,434,998 1,434,998 - 346,486 414.2%
1/1/2017 - 1,291,955 1,291,955 - 372,863 346.5%
STILLWATER BOARD OF WATER COMMISSIONERS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE COMMISSION’S PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY
DECEMBER 31, 2018
(32)
Measurement Date
June 30, 2018
Measurement Date
June 30, 2017
Measurement Date
June 30, 2016
Measurement Date
June 30, 2015
Commission's Proportion of the Net Pension Liability 0.0066%0.0061%0.0068%0.0070%
Commission's Proportionate Share of the Net Pension Liability 366,141$ 389,420$ 552,126$ 362,776$
State's Proportionate Share of the Net Pension Liability Associated
with Stillwater Water Commission 12,157 4,914 - -
Total 378,298$ 394,334$ 552,126$ 362,776$
Commission's Covered Payroll 459,280$ 396,339$ 423,652$ 412,843$
Commission's Proportionate Share of the Net Pension Liability as a
Percentage of Its Covered Payroll 82.37%99.49%130.33%87.87%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 75.90%75.90%68.91%78.20% *The Commission implemented GASB Statement No. 68 in fiscal year 2015, and the above table will be
expanded to 10 years as information is available.
STILLWATER BOARD OF WATER COMMISSIONERS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE COMMISSION’S CONTRIBUTIONS
DECEMBER 31, 2018
(33)
2018 2017 2016 2015
PERA
Contractually Required Contribution 30,084$ 33,171$ 29,791$ 30,801$
Contributions in Relation to the Contractually Required Contribution (30,084) (33,171) (29,791) (29,791)
Contribution Deficiency (Excess)-$ -$ -$ 1,010$
Commission Covered Payroll 401,120$ 442,280$ 397,213$ 410,680$
Contributions as a Percentage of Covered Payroll 7.50%7.50%7.50%7.50% *The Commission implemented GASB Statement No. 68 in fiscal year 2015, and the above table will be
expanded to 10 years as information is available.
SUPPLEMENTARY INFORMATION
BOARD OF WATER COMMISSIONERS
A COMPONENT UNIT OF THE CITY OF STILLWATER
SUPPLEMENTARY SCHEDULES OF OPERATING EXPENSES
YEARS ENDED DECEMBER 31, 2018 AND 2017
(34)
2018 2017
PRODUCTION AND DISTRIBUTION EXPENSES
Wages 233,464$ 307,692$
Repairs and Supplies 319,067 576,160
Chemicals 20,849 13,251
Electricity 99,221 92,231
Truck Expenses 9,936 7,212
Fuel 7,816 7,681
Testing Expenses 38,604 36,156
Total Production and Distribution Expenses 728,957 1,040,383
SERVICE CUSTOMER EXPENSES
Labor, Jobbing, and Equipment 9,708 10,139
Repairs, Parts, and Supplies 21,856 19,859
Total Service Customer Expenses 31,564 29,998
ADMINISTRATIVE AND GENERAL EXPENSES
Wages 161,180 158,330
Employee Pensions and Benefits 175,970 244,370
Insurance and Bonds 38,207 39,108
Utilities and Telephone 6,655 5,665
Office Supplies and Postage 40,269 37,014
Audit 11,675 11,560
Bank Fees - (12)
Other 54,989 25,358
Total Administrative and General Expenses 488,945 521,393
DEPRECIATION EXPENSE 452,940 459,511
Total Operating Expenses 1,702,406$ 2,051,285$
OTHER REPORTS SECTION
(35)
INDEPENDENT AUDITORS’ REPORT
ON MINNESOTA LEGAL COMPLIANCE
Board of Water Commissioners
Stillwater Board of Water Commissioners
Stillwater, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America, the financial statements of Board of Water Commissioners as of and for the year ended
December 31, 2018, and the related notes to the financial statements, and have issued our report
thereon dated June 25, 2019.
The Minnesota Legal Compliance Audit Guide for Other Political Subdivisions, promulgated by the
State Auditor pursuant to Minn. Stat. §6.65, contains six categories of compliance to be tested:
contracting and bidding, deposits and investments, conflicts of interest, claims and disbursements,
miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories,
except for tax increment financing as the Stillwater Board of Water Commissioners does have any tax
increment financing agreements.
In connection with our audit, nothing came to our attention that caused us to believe that Board of
Water Commissioners failed to comply with the provisions of the Minnesota Legal Compliance Audit
Guide for Other Political Subdivisions. However, our audit was not directed primarily toward obtaining
knowledge of such noncompliance. Accordingly, had we performed additional procedures, other
matters may have come to our attention regarding the Commission’s noncompliance with the above
referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this communication is not
suitable for any other purpose.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 25, 2019
216 4th Street N, Stillwater, MN 55082 651-430-8800 Website: www.ci.stillwater.mn.us
To: Mayor & City Council
From: Beth Wolf, City Clerk
Date: September 26, 2019
Re: On-Sale Sunday Liquor License Amendment for The Loft at Studio J LLC
An application for an amendment to the On-sale Liquor License for Sunday Sales has been
received from The Loft at Studio J LLC. Previously the The Loft at Studio J LLC was
approved for a combination of On-sale Liquor License (Monday-Saturday) and
Consumption & Display permit (Sundays only). During the course of renewing the
Consumption and Display permit the Alcohol and Gambling Enforcement Division indicated
The Loft at Studio J LLC does not need a Consumption & Display permit but rather should
apply for a Sunday Sales license if permissible by City Council.
RECOMMENDATION:
Staff recommends approval of the On-sale Sunday license conditioned upon approval from
Minnesota Alcohol and Gambling Enforcement Division.
ACTION REQUIRED:
If Council desires to approve the On-sale Sunday license, they should pass a motion to adopt
Resolution entitled “Resolution Approving Amendement to The Loft at Studio J LLC On-sale
Liquor License to Include Sunday Sales.”
RESOLUTION 2019‐
RESOLUTION APPROVING AMENDMENT TO
THE LOFT AT STUDIO J LLC ON‐SALE LIQUOR LICENSE
TO INCLUDE SUNDAY SALES
WHEREAS, a request has been received from The Loft at Studio J LLC for an amendment to
their On-sale Liquor License to include Sunday sales as permitted by Minnesota Statutes
§340A.504, Subd. 3; and
WHEREAS, approval is contingent upon fulfilling all requirements to hold an On-Sale
Sunday Liquor License, and approval from the Minnesota Alcohol & Gambling Enforcement
Division.
NOW THEREFORE, BE IT RESOLVED, that the City Council of Stillwater, Minnesota,
hereby approves an amendment to their On-sale Liquor License to include Sunday sales
with the operation hours as previously determined by the City Council.
Adopted by the Stillwater City Council this 15th day of October 2019.
___________________________________________
Ted Kozlowski, Mayor
ATTEST:
________________________________________
Beth Wolf, City Clerk
Date: October 11, 2019
TO: Mayor and Council
FROM: Beth Wolf, City Clerk
SUBJECT: Issuance of a New On-sale, Sunday and 2 AM Liquor License
Stardust Endeavors LLC DBA Ziggy’s West
DISCUSSION:
An application has been received for a new On-sale, Sunday and 2 AM liquor license for
Stardust Endeavors LLC DBA Ziggy’s West located at 132 Main St S. Stardust Endeavors
has purchased the original Ziggy’s restaurant.
RECOMMENDATION:
Staff recommends approval contingent upon the satisfactory investigation, inspections, and
approvals from the Police, Fire, Building, Finance Departments, Washington County Public
Health and Environment and Minnesota Alcohol Gambling Enforcement Division (AGED).
It should be noted that AGED approval is the last approval required before staff issues the
actual license to the establishment.
ACTION REQUIRED:
If Council concurs with the recommendation, they should pass a motion adopting
resolution 2019-___ Approving the issuance of a New On-sale, Sunday and 2 AM Liquor
License to Stardust Endeavors LLC DBA Ziggy’s West contingent upon the satisfactory
investigation, inspections, and approvals from the Washington County Public Health and
Environment Department, Police, Fire, Building, Finance Departments and Minnesota
Alcohol & Gambling Enforcement Division.
RESOLUTION 2019‐
APPROVING THE ISSUANCE OF A NEW OFF‐SALE LIQUOR LICENSE TO
STARDUST ENDEAVORS LLC DBA ZIGGY’S WEST
WHEREAS, an application for a new On-sale, Sunday and 2 AM Intoxicating Liquor
License for Ziggy’s West has been received from Stardust Endeavors located at 132 Main
Street S.; and
WHEREAS, approval is contingent upon fulfilling all requirements to hold an On-sale,
Sunday and 2 AM liquor license, the satisfactory investigation, inspections, and approvals
from the Washington County Public Health and Environment Department, Police, Fire,
Building, Finance Departments, and Minnesota Alcohol & Gambling Enforcement Division.
NOW THEREFORE, BE IT RESOLVED that the City Council of Stillwater, Minnesota,
hereby approve the issuance of a new On-sale, Sunday and 2 AM Liquor License to Stardust
Endeavors LLC DBA Ziggy’s West located at 132 Main Street S with desired start date of
November 1, 2019.
Adopted by Council this 15th day of October 2019.
___________________________________________
Ted Kozlowski, Mayor
ATTEST:
________________________________________
Beth Wolf, City Clerk
ORDINANCE 1134
AN ORDINANCE AMENDING THE STILLWATER CITY CODE
CHAPTER 31, ENTITLED ZONING ORDINANCE, BY AMENDING THE ZONING
MAP OF THE CITY TO REZONE CERTAIN PROPERTY WITHIN THE AP –
AGRICULTURAL PRESERVATION AND RA – ONE FAMILY RESIDENTIAL
DISTRICTS BY ADDING THEM TO THE RR – RURAL RESIDENTIAL DISTRICT
The City Council of the City of Stillwater, Washington County, Minnesota, does ordain:
Section 1. The zoning of the subject properties, location of which are legally
described as:
Lots 1-7, Block 1, Boutwell Valley Estates; and
Lots 1-10, Block 2, Boutwell Valley Estates; and
Lots 1-7, Block 3, Boutwell Valley Estates; and
Lots 1-5, Block 4, Boutwell Valley Estates; and
Lots 1-13, Block 1, Springcreek; and
Lots 1-3, Block 2, Springcreek
is hereby amended to RR, Rural Residential. This proceeding is known as
Planning Case No. 2019-49.
Section 2. This Ordinance shall be in full force and effect from and after
publication according to law.
Section 3. In all other ways the Stillwater City Code shall remain in full force
and effect.
Adopted by the City Council this 1st day of October, 2019.
CITY OF STILLWATER
Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Clerk
Date: October 11, 2019
TO: Mayor and Council
FROM: Robert Benson, Manager of Board of Water Commissioners
Beth Wolf, City Clerk
SUBJECT: Agreement of Assessment and Waiver of Notice and Appeal for Water Service Line Repairs
DISCUSSION:
Water Service line repairs were completed by contractors and billed to Board of Water Commissioners
for the following properties:
624 Wilkins Street W
305 Water Street S
1002 Fifth Street S
1323 Hill Crest Drive
1212 Olive Street W
712 Mulberry Street W
The cost are now in default of the agreement.
An Agreement of Assessment and Waiver of Notice, Hearing and Appeal for Water Service Line Repairs
will been signed by all property owners by November 15, 2019 therefore a public hearing is not
required.
RECOMMENDATION:
Board of Water Commissioners recommends that Council adopt resolution entitled “Resolution approval
of Agreement of Assessment and Waiver of Notice, Hearing and Appeal for Water Service Line Repairs”.
RESOLUTION 2019-
APPROVAL OF AGREEMENT OF ASSESSMENT AND WAIVER OF
NOTICE, HEARING AND APPEAL AND ADOPTING ASSESSMENT FOR WATER
SERVICE LINE REPAIRS, LI #428-1, 428-2 AND 428-3
WHEREAS, water repair ervice agreements have been executed relating to the following
addresses: 624 Wilkins Street W, 305 Water Street S, 1002 Fifth Street S, 1323 Hill Crest Drive,
1212 Olive Street W, 712 Mulberry Street W; and
WHEREAS, the agreement for this water repair is in default; and
WHEREAS, it is proposed to assess the costs against the property of the Owners and the Owners
agree to pay the cost as a special assessment against their property for collection with the real
estate taxes in annual installments of $1,800 per year with 2.75% interest.
THEREFORE BE IT RESOLVED, by the City Council of Stillwater, Minnesota:
1. That the agreements of assessment and waiver of irregularity and appeal between the
Property Owners and the City of Stillwater is hereby approved and authorizes the Mayor
and City Clerk to sign the agreements.
2. Each tract of land therein included is hereby found to be benefited by the proposed
improvements in the amount of the assessment levied against it.
3. Such assessment shall be payable in equal annual installments extending over a period as
stated below with an interest rate of 2.75%:
L.I. # Address Owner GEO Code Amount Term
428-2 624 Wilkins St. W Thomas Hartman 2103020330055 $6,500.00 4 years
428-3 305 Water St S JFS Stillwater LLC 2803020410027 $8.682.37 5 years
428-1 1002 5th St S Denise Jones 3303020120128 $5,000.00 3 years
428-1 1323 Hillcrest Dr Chris & Kristine Kunze 3403020240019 $5,378.18 3 years
428-2 1212 Olive St W James & Robyn Sandahl 2803020330027 $6,800.00 4 years
428-1 712 Mulberry St W Eric & Melissa Schultz 2803020240103 $5,031.33 3 years
4. No interest will be charged if the entire assessment is paid by November 15, 2019. If the
assess is not paid by November 15, 2019, accrued interest from the date of the adoption of
the assessment roll through December 31, 2018 will be added with the first installment due
in 2019 and be collected as stated above on the unpaid blance for the predetermined years.
At any time thereafter, prior to November 15th of any year, Owners may pay the remaining
principal balance (in whole or part) to the City of Stillwater.
5. The clerk shall forthwith transmit a certified duplicate of this assessment to the county
auditor to be extended on the property tax lists of the county. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
Adopted by the City Council of the City of Stillwater this 15th day of October 2019.
Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Clerk
Date: October 7, 2019
TO: Mayor and Council
FROM: Beth Wolf, City Clerk
SUBJECT: United State Bench Corporation License
U.S. Bench Corporation, located in Minneapolis supplies benches along public bus routes.
The company is not affiliated with any bus company. The fronts and backs of the bus
benches are rented to individuals for the purpose of advertising their product or business.
The City is paid $750 a year from U. S. Bench Corporation for 15 benches; in turn they
contract the advertisements on the benches.
ACTION REQUIRED
If Council concurs with staff’s recommendation, council should pass a resolution approving
the 2020 Bench license.
RESOLUTION 2019‐
APPROVING U.S. BENCH CORPORATION BENCH LICENSE
THEREFORE BE IT RESOLVED, by the City Council of Stillwater, MN that
permission be granted to U.S. Bench Corporation to maintain public benches at the
following locations:
Corner Location
SW Curve Crest Blvd @ Greeley St
SE Curve Crest Blvd @ Orlean St
NE Market Dr @ Curve Crest Blvd
E si Market Dr @ Curve Crest Blvd - 1 blk N
SE Market Dr @ Orleans St
NE Olive St W @ Pine Tree Trail
SE Orleans St @ Stillwater Blvd
NW Osgood Ave N @ 62nd St N
SE Osgood Ave N @ 65th St N
NE Owens St S @ Myrtle St W
NW Stillwater Blvd @ Croixwood Blvd
NE Stillwater Blvd @ Curve Crest Blvd
NE Stillwater Blvd @ Orleans St
W s Washington Ave @ Frontage Rd - 100 ft N
E si Washington Ave @ Frontage Rd - 100 ft N
BE IT FURTHER RESOLVED, that the permission herein granted is subject to the
following conditions: a license fee of $50 per bench per calendar year shall be paid in
advance to the City Treasurer; that the permittee shall keep and maintain said benches in a
state of good repair and appearance and shall relocate, remove or replace same at the
request of the City Engineer; and that the permittee shall submit a certificate of insurance
to the City Clerk.
Adopted by the Stillwater City Council this 15th day of October 2019.
________________ _____________
Ted Kozlowski, Mayor
Attest:
______________________ _________
Beth Wolf, City Clerk
Date: October 11, 2019
TO: Mayor and Council
FROM: Beth Wolf, City Clerk
SUBJECT: CGI Communications Video Program
At the July 16, 2019, City Council meeting City Administrator McCarty brought forth a
request to continue a partnership with CGI Communications, Inc. to create a series of
professionally produced online videos to highlight what the community offers residents,
visitors, and business owners. Council requested we look into some statistics on how many
viewers CGI are generating and instead consider incorporating video from Discover
Stillwater.
Staff reviewed the videos and determined the advertisement associated with the videos are
from businesses in Hudson and many of the scenes were not in Stillwater. CGI stated the
videos have been viewed 23,000 times however no timeline was given for the statistics.
The City is working with a new website design company that offers many more
opportunities for the City to provide fresh content with easier integration than with our
previous website design company. Staff feels we can accomplish adding videos marketing
our own city and business without using CGI. Therefore, staff is recommending not to
partner with CGI Communications for our community videos on the city website.
ACTION REQUIRED:
If Council concurs with staff’s recommendation, council needs to pass a motion to
discontinue using CGI Communications as the community video program provider.
Memorandum.
To:
From:
Date:
Mayor and City Council
Shawn Sanders, Public Works Director/City Engineer
October 10, 2019 qo ,
Subject: 2019 Hardcourt Rehabilitation Project
Acceptance of Work and Final Payment
DISCUSSION
The final work on the above project has been completed. The contractor has submitted their
application for payment and required information to allow for final payment.
RECOMMENDATION
Staff recommends that Council accept the work and authorize final payment to Brochman
Blacktopping, Inc. in the amount of $59,686.17.
ACTION REQUIRED
If Council concurs with staff recommendation, Council should pass a motion adopting
Resolution No. 2019-_, ACCEPTING WORK AND ORDERING FINAL
PAYMENT FOR 2019 HARDCOURT REHABILITATION PROJECT.
ACCEPTING WORK AND ORDERING FINAL PAYMENT FOR
2019 HARDCOURT REHABILITAION PROJECT
WHEREAS, pursuant to a written contract signed between the City and Broclunan Blacktopping
Inc. for the construction of the 2019 Hardcourt Rehabilitation Project and their work has been
completed with regard to the improvement in accordance with such contract,
BE IT FURTHER RESOLVED: That the city clerk and mayor are hereby directed to issue a
proper order for the final payment of $59,686.17 on such contract, taking Brochman
Blacktopping Inc. receipt in full.
Adopted by the Council, this 15th day of October 2019.
Ted Kozlowski, Mayor
Attest: --------------Beth Wolf, City Clerk
Memo
DATE:
TO:
FROM:
RE:
October 9, 2019
Mayor and City Council
Sharon Provos, Finance Director
Sanitary Sewer Adjustments
BACKGROUND:
During the course of any given year, sanitary sewer rate adjustment recommendations come before
Council. These adjustments are mainly due to leaks found during the course of the year, but often stand
out more during the readings during the 1st quarter of every year. For residential properties, sanitary
sewer billing rates are set during the 2nd quarter of every year using the water consumption ( obtained
from the Water Board) from the 1st quarter of the year. This rate is then used for the next 4 billing
cycles (quarters) until the rates are reset again the following year.
As mentioned before, occasionally there are some properties that have experienced increased water
usage during the 1st quarter of the year due to some unforeseen circumstances (e.g. leaky toilet, water
softener issues, pipe issues, etc.). This increased water usage naturally in turn increases their sanitary
sewer billing rate for the next 4 billing cycles (quarters). These residents/owners will then call the City
to explain their individual circumstance. We (Finance) then review consumption rates from
prior/current quarters to see ifwe can determine the duration/termination of the leak based on the
information provided to us by the water department and the resident/owner. This information then is
used to provide Council with new billing rate recommendations for upcoming billing periods (until the
new rates are reset the following year).
This practice has been used by the City for many years, and has been proven to be a fair and accurate
way for property owners to pay their fair share of the use of the sanitary sewer system.
RECOMMENDATION:
Attached are staff recommendations for sanitary sewer rate adjustments currently requested by property
owners. These adjustments are expressed in gallons (of consumption), based on the average
consumption of the prior 3 years, and converted to the new billing rate using the most current billing
rates approved by Council. These adjustments will begin with the next billing cycle (3rd quarter billing).
In other words, staff is recommending to Council that the property owner at least pay the increased
sanitary sewer rate for the billing period in which the leak occurred.
COUNCIL ACTION:
If Council agrees with Staffs recommendation, Council needs to approve staff recommendations as
listed on the attached Exhibit A.
EXHIBIT A
Description of Billing Quarter
Circumstance Winter Average Gallons Adjustment for
1 Leaking Toilet From 24,000 3rd
To 12,000
2 Leaking Toilet From 16,000 3rd
To 8,000
3 Leaking Toilet From 33,000 3rd
To 7,000
4 Leaking Toilet From 69,000 3rd
To 9,000
5 Leaking Toilet From 29,000 3rd
To 22,000
6 Leaking Toilet From 23,000 3rd
To 11,000
7 Leaking Toilet From 81,000 3rd
To 35,000
8 Leaking Toilet From 17,000 3rd
To 6,000
9 Leaking Toilet From 16,000 3rd
To 6,000
10 Leaking Toilet From 23,000 3rd
To 9,000
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and City Council
Shawn Sander~tlirector of Public Works
October 11, 2019
CSAH 5 Street Road Improvement Project-Phase 2
Project 2019-09
DISCUSSION
The public hearing for the CSAH 5 Street Improvement Project Phase 2 is scheduled for Tuesday
October 15 at 7:00 pm. This project, which is being led by Washington County would improve
County Road 5 (Olive and Owens Streets) from Pine Tree Trail to Sycamore, in 2020. Work
would consist of a mill and overlay, the entire length and new curbs and sidewalks on Owens
Street from Olive to Sycamore Street. Attached are copies of the feasibility report and the
public hearing notice that was sent to the affected property owners.
RECOMMENDATION
It is recommended that Council hold the required public hearing. If desired, Council should pass
a resolution ordering the improvement and directing the engineer to prepare plans and
specifications. It should be noted that the resolution to order the improvement requires a 4;5ths
majority vote.
ACTION REQUIRED
If Council concurs with the recommendation, they should pass a motion adopting
RESOLUTION 2019-ORDERING IMPROVEMENTS AND PLANS &
SPECIFICATIONS FOR THE CSAH 5 STREET IMPROVEMENT PHASE 2 PROJECT.
PROJECT 2019-09.
ORDERING IMPROVEMENT AND PREPARATION
OF PLANS & SPECIFICATIONS FOR THE
CSAH 5 STREET IMPROVEMENT PROJECT PHASE 2 (PROJECT 2019-09)
WHEREAS, a resolution of the City Council adopted on September 1 7, 2019 fixed a
date for a council hearing on the proposed CSAH 5 5 Street Improvement Project Phase 2; and
WHEREAS, ten days mailed notice and two weeks published notice of the hearing was
given, and the hearing was held thereon on the 15th day of October 2019, at which time all
persons desiring to be heard were given an opportunity to be heard thereon;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
STILLWATER, MINNESOTA:
1. Such improvement is necessary, cost-effective, and feasible as detailed in the
feasibility report.
2. Such improvement is hereby ordered as proposed in the council resolution adopted
the 15th day of October 2019.
3 . The City Engineer is directed to work with Washington County in the preparation of
the plans and specifications for the making of such improvement.
Adopted by the Council this 15th day of October 2019 .
Ted Kozlowski, Mayor
Attest :
Beth Wolf, City Clerk
(Stillwater
~ A)
THE BIRTHPLACE OF MINNESOTA ~
October 4, 2019
Subject: Public Hearing on CSAH 5 Street Improvements Phase 2 (Project 2019-09)
Dear Property Owner:
Washington County is proposing street improvements on County Road 5 from Pine Tree
Trail to Sycamore Street during the summer of 2020. This is phase two of a three phase
project by the County to make road and pedestrian safety improvements on County Road 5
through Stillwater. Phase one from Croixwood Boulevard to Pine Tree Trail was completed
in 2018. Phase three would be road and trail improvements north of Sycamore to Highway 96
and planned for 2022.
The phase two project will consist of a mill and overlay from Pine Tree Trail to Sycamore.
Owens Street from Olive to Sycamore Street would have curbs and sidewalks replaced and
pedestrian ramps upgraded, as well. While the cost of the project is primarily being paid by
Washington County, there are some costs the city is responsible for, mainly the sidewalk and
the curb gutter costs. The city is proposing to pass on a portion of these costs to the property
owners. A feasibility study explaining the project, cost and funding was presented to the
City Council on September 17th and was approved. A copy of the feasibility study for this
project is included with this letter
A public hearing for the project will be held in the Council Chambers at the regular
scheduled City Council meeting Tuesday, October 15th, 2019 at 7:00 PM. The public
hearing is your opportunity to voice your comments to Council prior to making a final
decision on whether to proceed with this project. You may participate in the hearing by
attending and voicing your comments or by sending a letter to the City Clerk prior to the
meeting.
If you have any questions please give me a call at (651) 430-8835 or send an email to
ssanders @ ci. still water .mn. us.
Sincerely,
Shawn Sanders,
Director of Public Works
CITY HALL: 216 NORTH FOURTH STREET • STILLWATER, MINNESOTA 55082
PHONE: 651-430-8800 • WEBSITE: www.ci.stillwater.mn.us
NOTICE OF PUBLIC HEARING FOR
CSAH 5 STREET IMPROVEMENT PROJECT PHASE TWO
PROJECT 2019-09
October 2 ~ 2019
Notice is hereby given that the City Council of Stillwater, Washington County, Minnesota; will
meet in the Council Chambers of the Stillwater City Hall, 216 N 4th Street, Stillwater, MN 55082
at 7:00 p.m. or as soon as possible thereafter, on Tuesday, October 15th 2019, to consider street
and sidewalk improvements.
The area proposed to be assessed for such improvement includes properties abutting North Owens
Street from Olive Street West to Sycamore Street. The estimated cost of the improvements is
$206,773.13 A reasonable estimate of the impact of the assessment will be available at the hearing.
Such persons as desire to be heard with reference to the proposed improvement will be heard at this
meeting.
Published in Stillwater Gazette on October 4 and 11, 2019
Beth Wolf
City Clerk
CITY HALL : 216 NORTH FOURTH STREET • STILLWATER , MINNESOTA 55082
PHONE: 651-430-8800 • WEBSITE: www.ci.stillwater.mn.us
MEMORANDUM
To: Mayor and City Council
From: Shawn Sanders, Director of Public Works
Date: September 11, 2019
Re: Feasibility Report CSAH Street Improvement-Phase 2 (Project 2019-09)
BACKGROUND
Washington County (County) has had in its road program street and pedestrian safety
improvements for County Road 5 through the City to be undertaken over a period of years. In
2018, phase I began with street and pedestrian improvements between Croixwood Boulevard
and Pine Tree Trail. Phase 2 planned for 2020 includes work on between Pine Tree Trail and
Sycamore Street, Phase 3 is a couple years out and includes work from Sycamore Street north to
TH96.
PROPOSED PROJECT
For the Phase 2 project, the County is proposing an improvement that consists of a mill and
overlay between Pine Tree Trail and Sycamore Street, replacing curb and gutter and existing
sidewalks from Olive Street to Sycamore and installing new sidewalk on the west side of Owens
Street from Wilkins to Sycamore. Street widths would be narrowed to from 44' to 42' between
Olive and McKusick Road and 44' to 38 feet from McKusick to Sycamore Street. New sidewalk
widths would range from 5 ft. -7 ft. ADA pedestrian ramps would be installed at all street
intersections. Storm sewer would be moved in areas where the street widths are narrowed and
sanitary sewer castings would be replaced.
PROJECT COSTS
The overall project cost is estimated to be $2,900,000 and primarily funded by the County, such
as mill and overlay, storm sewer and sidewalks but according to their cost participation policy,
some items are the city's responsibility. The City is responsible for 50% of the new sidewalk,
50% of new curb and gutter, 100% of the sanitary manhole replacements and a prorated share on
erosion control, striping and mobilization items. The estimated construction cost to the City is
$322,586.00. Total cost to the City which includes engineering, inspection and administration is
$446,854.57.
PROJECT FINANCING
Financing for the project would come from three sources; assessments, Municipal State Aid
Funds and the Stillwater Water Board. It is proposed that those costs associated with the curb
and sidewalk improvement be assessed to the affected property owners on Owens Street from
Olive to Sycamore Street. This amounts to $206,773.13. It is proposed the 108 residential
property owners along this corridor be assessed 70% of the cost or $141,298.51. Residential
properties would be charged a unit rate of $1806.22, comer lots would be charged $903 .11.
Commercial properties the apartment buildings and institutional properties, including City land
would be charged a frontage rate of $15.72 per foot. The Water Board would be charged costs
associated to relocate gate valves and hydrants within the project or $50,111.14. All other costs,
including the City's share of the assessments would be $255,444.92 and covered by Municipal
State Aid.
PROPOSE SCHEDULE
Feasibility Study
Public Hearing
Approve Plans
Award Bid
Construction
Assessment Hearing
RECOMMENDATION
September 17, 2019
October 15 , 2019
November 2019
January 2019
Summer2020
Fall 2020
Since the project is feasible from an engineering standpoint and the project is cost effective, it is
recommended that Council accept the feasibility report study for CSAH 5 Street Improvement-
Phase 2 and order a public hearing to be held on October 15th 2019 at 7:00 p.m.
ACTION REQUIRED
If Council concurs with the recommendation, they should pass a motion adopting Resolution
2019-__ , RESOLUTION RECEIVING REPORT AND CALLING HEARING ON
CSAH STREET IMPROVEMENT-PHASE 2 (Project 2019-09)
Proposed Construction
,, ____ Mill and Overlay
i--Mill/Overlay and New Sidewalk
0 350
Feet
700 1,400 j CSAH 5 Improvement Phase 2
Project 2019-9 Feasability Study
Project Area
1
Date: October 15, 2019
TO: Mayor and Council
FROM: Kori Land, City Attorney
SUBJECT: Problem Property Designation Appeal at 918 5th Ave. S. On September 17, 2019, John Prosser, the owner at 918 5th Ave. S., Stillwater (“the Property”) was sent a certified letter notifying him that pursuant to City Code Section 38-5, the Property has been declared a Problem Property and would be included on the City’s Problem Property’s list. (see Exhibit A, “Problem Property Designation Letter”) Mr. Prosser appealed that designation in a timely manner and the appeal is now before the City Council to consider if the designation should be upheld. (see Exhibit B, “Prosser Notice of Appeal Letter”) In regard to when a property is added to the Problem Properties list, City Code Section 38-5 states the following:
(c) A property must be listed [on the problem properties list] if the following conditions are present: 1. The problems or violations on the property are serious, that is, founded and substantial. 2. The problems or violations are and have been enduring in that at least three founded and substantial problems or violations have occurred on the property within an 18-month period, or substantial problems have remained unabated 90 days after notice and an opportunity to cure has been mailed to the registered owner. 3. The problems or violations adversely affect the neighborhood or the community as a whole. “Problems” are defined in the ordinance as follows: Problems, as used in the ordinance from which this section was derived, means chronic traffic congestion, noisy or late night parties or gatherings that disturb the repose of neighboring property owners, excessive or unreasonable amounts of otherwise lawful parking that causes the unsafe narrowing of traffic lanes and which parking is caused by crowds associated with parties or social gatherings; abusive or threatening language
or gestures by residents of the property directed at adjacent or neighboring property owners; a property that is the location of gatherings of juveniles and residents or guests have received citations for underage consumption or the owner of the property has received a citation for allowing or aiding or abetting juvenile consumption; a property that has been allowed to physically deteriorate and has not been maintained and the
2
neglect has measurably lessened the market value of nearby property in the opinion of an appraiser hired by the city for that purpose. (emphasis added) The Problem Property Designation Letter identified six incidents between July 2018 and Sept. 1, 2019 that qualify as “problems” under the ordinance, specifically, noisy or late-night parties that disturb neighboring property owners. These incidents were all confirmed by the Police Department. While there have been more potentially qualifying incidents that occurred during this time frame, these additional incidents could not be substantiated by the Police Department. Also, there were other similar potentially qualifying incidents that occurred over the weekend of Oct. 5-6, 2019 of which Council may be aware, but these incidents occurred after the issuance of the Problem Property Designation Letter, so while it appears that neither the property owner nor tenant is doing anything to mitigate the problems since that the City’s Problem Property Designation Letter was issued, these new incidents would not “count” as additional violations for purposes of designating the Property as a Problem Property. Mr. Prosser is the owner of the Property 1, but resides at 906 5th Ave. S.2 He claims to have had the same tenant at the Property for nine years, which would be the entire time that he has owned the Property. (see Prosser Notice of Appeal Letter) Mr. Prosser alleges that he had no notice of the problems the City was having with his tenant. Notice of the problems is not a requirement in the ordinance prior to being designated as a Problem Property. Regardless, the City offers the following evidence to contradict his statements:
• Mr. Prosser resides on 5th Ave. S., which is a dead-end street. His house is located only 2 doors away and 140 feet from the Property. It seems highly unlikely that he would be unaware of the numerous times the police have been present at the Property. (See maps Exhibits E and F)
• On at least one occasion, there is documentation that the Police Department had contact with Mr. Prosser to address a very large party at his residence (906 5th Ave. S.) and at the Property simultaneously. (See Exhibit G) It is the City’s position that there have been at least three 3 founded and substantial problems that have occurred on the Property within an 18-month period; therefore, the Property must
1 Mr. Prosser purchased the Property in 2010, (see Exhibit C, Deed for 918 5th Ave. S.), which is listed as single-
family “owner/occupied” in Washington County property records; clearly a mistake that should be corrected in the
Assessor’s Office since it is non-homestead rental property.
2 Mr. Prosser has owned 906 5th Ave. S. since 1996. (see Exhibit D, Deed for 906 5th Ave. S.)
3 The Ordinance requires at least three incidents, but there are six incidents documented in the Problem Property
Designation Letter.
3
be listed on the Problem Property’s list. The City submits this Report and its Exhibits as the City’s evidence to support the designation. If the Council upholds the designation and finds that the Property is a Problem Property, then following such designation, Mr. Prosser must complete a Problem Property License application, undergo an inspection of the Property and comply with any terms and conditions of the license as established by the City Administrator. In addition, there is an annual fee, which shall be at least $1,500, but which should cover the cost of enforcement for a period of one year. After that point, the Property will remain on the City’s Problem Property’s list and the owner must reapply for an annual license until the Property is incident-free for a period of 24 months. The license will be recorded against the Property so any future owner will be aware of the requirements under this designation. Failure to complete an application, to renew the license or to pay the fee may result in the issuance of a misdemeanor citation. Mr. Prosser was provided with notice that his appeal would be heard at the Council meeting on October 15, 2019. (see Exhibit H) The City asks that the Council allow the property owner an opportunity to be heard, present evidence and testimony and after hearing the evidence, decide whether to uphold or overturn the designation of the Property at 918 5th Ave. S. as a Problem Property. In the event the Council upholds the designation, a draft Resolution has been included in the packet for your consideration.
EXHIBIT A
EXHIBIT A
illwat
Administration
September 17, 2019
John A. Prosser
906 5th Ave. S.
Stillwater, MN 55082
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Re: Problem Property at 918 5th Ave. S.
Dear Mr. Prosser:
You are the registered owner of the above-mentioned address, which has come to the attention of
the City of Stillwater because of the frequency of police calls to the residence for noisy parties or
gatherings. It is our understanding that this property is rental property and is not owner-occupied.
However, you, as the registered owner of the property, have a responsibility to ensure that your
property is not a burden on the public safety resources of the City. To that end, the City has enacted
an ordinance addressing "problem properties" so that the property owners are held accountable
and paying for their portion of the extra costs of monitoring these types of properties.
Stillwater City Code Section 38-5 states that a property may be declared a "problem property" by
the City Administrator after 3 problem violations in an 18-month period. "Problems," as defined
in City Code Section 38-5(b)(2), include noisy or late-night parties or gatherings that disturb the
repose of the neighboring property owners.
The property identified above has had numerous police contacts for noisy parties or gatherings,
and specifically on the following occasions within the last 18 months, which were confirmed by
the responding police officers:
Date Incident Number Descri12tion Time of Call
9/1/19 SW19009245 Loud Party 2:36 a.m.
8/24/19 SW19008948 Loud Party 3:14 a.m.
4/27/19 SW19003848 Noisy Party 10:56 p.m.
3/30/19 SW19002916 Loud 11:59 p.m.
3/2/19 SW19001980 House Party 12:30 a.m.
7 /15/18 SW18007465 Disorderly People 12:48 a.m.
Copies of the incident reports documenting the referenced violations are enclosed. The problems
at this property are serious, founded by the responding officers and are substantial. These problems
adversely affect the neighborhood and community as a whole.
216 4th Street N, Stillwater, MN 55082 651-430-8800 Website: www.ci.stillwater.mn.us
John A. Prosser
September 1 7, 2019
Page2
illwater
Administration
Therefore, after consultation with the Community Development Director, Police Chief and
the City Attorney, I am declaring the property at 918 5th Ave. S. to be a problem property
and placing it on the Problem Properties List. Within 30 days of this notice, you are required
to obtain a Problem Properties License from the City. You must complete an application for
this license (see attached), agree to an inspection of the Property and appropriate conditions
may be imposed on the license to ensure that the problems do not continue. There is an
annual license fee of $1,500 that must also be paid at the time of application.
The license must be renewed annually and can only be removed from the list following a period
of 24 months without any violations. This license will be recorded against the property and is
enforceable against you and any subsequent owners. Please be advised that failing to obtain a
license is a misdemeanor, punishable by a fine of up to $1,000 or 90 days in jail or both.
You may appeal this decision to the City Council within 10 days of today's date by sending a
notice of appeal addressed to me at City Hall.
Please contact me if you have any questions about this declaration or if you need additional
information.
Very truly yours,
p.~)t~
J. Thomas McCarty
City Administrator
Enclosures
C: City Council
Karine Land, City Attorney
John Gannaway, Police Chief
Bill Tumblad, Community Development Director
Beth Wolf, City Clerk
216 4th Street N, Stillwater, MN 55082 651-430-8800 Website: www.ci.stillwater.mn.us
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381
CASE#
SW19009245
D escriplio,1 DISTURBANCE
D isposi tion:
Offe ns e
9830 Disturbance 9000 MISC CODE 9999
SUMMARY
WHEN REPORTED
09/01/2019 02:36:20
R EC'D BY: RADIO
OFFENSE(S)
· . . EVENT LOCATION
5th Ave S
STILLWATER, MINNESOTA 55082
. .
Charge, Leve I Offense Status
NO CHARGE
Person PARKER , DEREK MARQUIS
Person
\J U1 s t Nmne
~ PARKER
(/) Address
0 5TH AVES
~ .
_ Age ut l lrne o f 1n c1 rt e1 11 · 31
...lo.
-A(ldllnm1J 1111ClllllOUOII
: (PERSON MENTIONED)
J r-1,st Name -iidcll e Namo
· DEREK MARQUIS JC 1ty Stale lZ lp
STILLWATER MN 55082
]
P hone
()
Gender
M
OFFICER COMMENTS
'Surfix
I was dispatched to the location for a report of a loud party . Upon arrival , I spoke with the male who lives at the location and advised him
of the issue. The male stated that he would make sure everyone stayed in the house and will keep the noise to a minimum. After I clear
the call I stayed in the area and it appeared all parties were staying in the home and I could not hear any loud noise coming from the
location . Clear. End report.
PRINT DAT E 09/10/2019 TIIVIE-. 15:07:25 PAGE 1 OF 1
STILLWATER POLICE DEPARTMENT
216 4th Street N Stillwater, MN 55082
651-439-9381
X
Case #:SW19009246 CallForService #: 19-0165515
Event
918 5th Ave S STILLWATER, MINNESOTA 55082
Call Received:
Transmitted:
Jurisdiction:
Reported As:
How Received:
Alarm:
Call Status:
Priority:
Call Taker:
CAD Number:
First Unit Dispatched:
First Unit Enroute:
Cross Street:
Beat:
Latitude:
Longitude:
Inform CAD Comments
09/01/2019 02:46:23
09/01/2019 02:48:44
Stillwater Police
D isturbance/Civil Disobedience
PHONE
0
CLOSED
2M-Medium
Domine, Erin K
19-0165515
09/01/2019 02:48:44
09/01/2019 02 :48 :44
Not Found /DUBUQUE STE
Stillwater PD 1
45 .047924
-92.80145
Narrative (1)
9/1/2019 2:47:30 AM, Performed By: CC11461
09/01/2019
[1] RP REPORTING A LOT OF VEHICLE TRAFFIC -THEY THINK THE RESIDENCE IS SELLING DRUGS. SAME
VEHICLES SHOW UP FOR 5-10 MIN AND THEN LEAVE. ONE IS SEABRING CONVERTIBLE. RP SAID THEY
JUST SAW POLICE LEAVE.
9/1/2019 2:47:45 AM, Performed By: CC11461
[2] RELATED SW19009245
9/1/2019 2:48 :08 AM, Performed By: CC11461
[3] RP TX FROM ST CROIX -BAD PHONE CONNECTION
Printed On09/10/2019 Page 1 of 2 Printed By England, Alexandra
STILLWATER POLICE DEPARTMENT
216 4th Street N Stillwater, MN 55082
651-439-9381
Case #:SW19009246
9/1/2019 2:48:44 AM, Performed By: CC11097
X
CallForService #: 19-0165515
[4] Automatic Case Number(s) issued for Incident #[19-0165515], Jurisdiction: Stillwater Police. Case
Number(s): SW19009246. requested by SW2220.
Unknown
Responders:
Unit:
Dispatched:
Enroute:
Completed:
Dispatched By:
Printed On09/10/2019
Response (1)
SW24142 Dawley, Justin T
SW2220
09/01/2019 02:48:44
09/01/2019 02:48:44
09/01/2019 02:48:50
Dexter, Bre L
Page 2 of 2 Printed By England, Alexandra
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater , MN 55082
651-439-9381
, CASE# . . WHEN REPORTED .
SW19008948 08/24/2019 03:14:49
R EC'D BY: RADIO
EVENT DETAILS
Dcsc,,p lion NOISE COMPLAINT/DISTURBANCE
Disp0silio11 :
SUMMARY
PARKER , DEREK MARQUIS
Person
~,~:~~~eR
en I /\c1d , ess
0 1918 5TH AVES
~ • D013
_ 1 /\ge al lim e ol incicle11t: 31
~
-Addtional lnforn1c1tion
!(OWNER)
I
1~e11 cier Phone
EVENT LOCATION
918 5th Ave S
STILLWATER, MINNESOTA 55082
Mltlc ll el ume
MARQUIS
~·: j ;i~082
. · -. . OFFICER :COMMENTS . -·. -·
' . . . .
lS ufflx
Responded to a noise complaint at the address of 918 5th Ave S for a report of people yelling/being loud in the street. PARKER is known
to me as the tenant at the address. As I was en route dispatch advised that the parties were dispers ing. I arrived and could hear loud
voices coming from inside the residence as I was standing on the street. I made contact at the address and requested to speak with
PARKER. They advised that he was not at home. I advised parties at the residence of the noise complaint and that PARKER would be
cited if the problems continue. Cleared .
Pr-{INT DAT E 09/10/2019 TIME= 15:05:40 PAGE 1 OF' 1
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street.N
Stillwater, MN 55082
651-439-9381
CASE# WHEN REPORTED
SW19003848 04/27/2019 22:56:25
REC'D BY: RADIO
Suspect
Person
Suspeot
! LestName
PARKER, DEREK MARQUIS
WOLDEN , CHARLES
First Name
DEREK t.n PARKER
'V Address ~ 918 5TH AVES
City
STILLWATER
-I DOB:'
(/) Age at time of Incident 31
~ -Addtlonal Information
Related Offenses
Gender
M
38.2.1 Noisy party or gathering 9000 MISC CODE 9999
Person
'Vm Last Name
:::0 WOLDEN
ct, Address
0
Gender
First Name
CHARLES
City
Phone
Phone
EVENT LOCATION
918 5th Ava S
STILLWATER, MINNESOTA 55082
Middle Name
MARQUIS
State Zip
MN 55082
Middle Name
State Zip
Country
Country
~ DOB:
-Age at lime of Incident: .... (651) 351-0295 ()
-Addtlonal Information
Suffix
Suffix
ISSUED THE ABOVE HOME OWNER A CITATION FOR NOISY ASSEMBLY/PUBLIC NUISANCE. SEE DICTATED REPORT. CLEAR
BY CITATION.
NARRATIVE (1 )
PRINT DATE 05/06/2019 TIME 09:59:50 PAGE 1 OF 3
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381 CASE# SW19003848 cont'd
Initial Report Julien SW22248
SYNOPSIS:
05/01/2019 14:31:00
Ultimately cited DEREK PARKER DOB: J for having a noisy party or gathering under
Stillwater City Ordinance 38.2.1 tonight as officers responded to his house for a loud party complaint.
NARRATIVE:
On the above date and time 04/27/2019 at approximately 2256 hours I Officer Hunter Julien #223 was
dispatched to the above address 918 5th Avenue South on a report of a loud party. Upon arrival in the
area I rolled down my window and turned off my headlights and parked approximately one house away
from the suspect house at 918 5th Avenue South. I could clearly hear music coming from inside of the
house upon my arrival on scene.
I found an involved party outside and asked him to get the homeowner. At this time I spoke with the
homeowner identified as DEREK MARQUIS PARKER DOB: PARKER felt the music
wasn't that loud and asked why we got a loud music complaint. I explained that as I rolled up on the
house I could hear the music from the street.
It should be noted that officers have had several complaints both last year and this year on this house
with the same owner having loud parties and loud music. Officers have dealt with PARKER several
times and have given him several warning to make sure to turn down his music and keep his parties
quieter. Ultimately and obviously PARKER has refused as again we had received another call tonight.
Tonight I made the decision to issue him a citation #820610911707 for violation of Stillwater City
Ordnance 38.2.1 Noisy Assembly for allowing a noisy party or gathering. The defendant's copy of the
citation was issued to him on scene.
PARKER was upset and began saying that he is going to continue to call the police from now on on his
neighbor that he feels that is calling on him because apparently she had yelled racial slurs towards him
in the past. I advised PARKER that if there is any issues that he also can call however only when these
issues are occurring and not just at random. After I cleared the area PARKER did call and state that his
neighbor yelled racial slurs out the window towards him. I responded; please see that incident for
further information.
Regarding the noisy party tonight, all parties left the area as PARKER stated that they were all going to
the club. I then cleared the area without further issue.
PRINT DATE 0510612019 TIME 09:59:50 PAGE 2 OF 3
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381
CONCLUSION:
CASE# SW19003848 cont'd
At this time this case is clear by citation issue.
PRINT DATE 05/06/2019 TIME 09:59:50 PAGE 3 OF 3
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381
CASE#
SW19002916
WHEN REPORTED
03/30/2019 23:46:10
REC'D BY: RADIO
EVENT LOCATION
918 5th Ave S
STILLWATER, MINNESOTA 55082
. · , OFFENSE(S) · · . . .. : · · . . . · ' . . : ~
1 , , , • .,. • • • •• .! • • , , •. • 1 I "• • o '• ·~ , • ": • jL,,.,. i.' t.
Ofrensa
9830 Disturbance 9000 MISC CODE 9999
9898 Noise -Unreasonably Loud 9000 MISC CODE 9999
03/30/2019 23:59:10
03/31/2019 03:58:00
Person
Person
"'O L"sl Nt,m& ~ PARKER
(n Addrn~~ a~
Mallet SW24899
Bruchu SW15621
PARKER , DEREK MARQUIS
(OWNER)
~ DOB :
_ Age at lime of incident: JO
..a.
-Addlionfll lnfcJrrm,tlon
HOME OWNER
First Namu
DEREK
Cl1y
STILLWATER
, Ch,irge Level
NO CHARGE
NO CHARGE
Reporting
Assisting
Ml,lclle N,l rnc
MARQUIS
~,tn l f• 7.ip
MN 55082
Collnlry
Responded to the above location for a noise complaint. Upon arrival, I heard what sounded like a large party taking place inside of the
residence and made contact with lndlvlduals at the home who advised that they would turn down the music. Clear.
PRINT DATE 04/30/2019 mv1E 11:44:11 PAG E 1 OF 1
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381
l'ri llct• l)('pnl'(mcul ')
CASE# · , . WHEN REPORTED : ·-. ·
· I 1 ~, • , , .,. , • r •. ,1. ... • , • I _ ,". ,1 '.:. .....
SW19001980 03/02/2019 00:30:10
REC'D BY: RADIO
918 5th Ave S
STILLWATER, MINNESOTA 55082
OFFENSE(S) ·. · ·
o@nse
9896 Noise· Unreasonably Loud 9000 MISC CODE 9999
l11110lv nw,111 Dute
03/02/2019 01:05:16
0310212019 01 :05:24
Person
Person
Person
"O &sl Nnm
~ PARKER
(/'J Add ress
0 918 5TH AVES
Name
Mallet SW24899
Julien SW22248
PARKER , DEREK MARQUIS
WOLDEN , CHARLES EDWARD
(OWNER)
Firnl N~n,~
DEREK
City
STILLWATER
Grn,dm Phone ~ DOB:
_ Aye at limo or11,dcwn t· 30 M
~ Afldtlon I lr1fo11natlon
HOMEOWNER
Perssn
ln~1.N.im o
WOLDEN
Addrest,
924 5THAVS
DOB:
Age at time of incident: 77
Addlional lnfDrnmtion
(COMPLAINANT)
Gendo1
M
~1.-..1 N!ir111'
CHARLES
(.ll'f
STILLWATER
l'honv
. . .
MISDEMEANOR
Type
Reporting
Assisting
MlrJrlleN(Hlltl
MARQUIS
,Stoto lip
MN 55082
Mklr.lle Ni.line
EDWARD
51a1.,
MN
l ip
55082
Coun11y
:country
.. . OFFICER COMMENTS . . . . ·. , . . . . . '. . : , ' .
I • , '1 I ,11 I ,' • • ,•.-1 , • ,• • "'' ' -•• 't ' • ·1 I \
Responded to the above location for a noise complaint. Upon arrlval, officers observed what looked Ilka a large party taking place inside of
918 5th Av S. I could hear music and people talking inside of the home. I then made contact with the home owner and informed him that
we received a noise complaint on the party and he stated that he would quiet th ings down. Clear.
PRINr DA l"E 05/01/2019 TIME 09:11 :34 PAGE 1 OF 1
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381
CASE#
SW18007465
Offlinse
.. · .WHEN REPOR1ED . ·.,. ( .· . " '.. .. .. . ........ ··"' ~· ...... ..
07/15/2018 00:48:34
REC'D BY: VISUAL
9830 Disturbance 9000 MISC CODE 9999
IT\c~l,jllwat (~
~ Po lice Drporlnum( ·
,.·. ' •• • •• ·, '. I -'EVENT, LOCATION . ' ' . . •/. '.,I
.)~1.._ ..... , •. 7:,.;._,.•' ,,1~~."' l,'"'!.·,,•;-="=-""..t:: .. l••c-H_..t:, ...... ..,...'./,·._.';.;t...,.i:_~
918 5TH AVES
STILLWATER, MINNESOTA 55082
Chr,rge Lf>vel
NO CHARGE
! '··.:. · OFFICE Rs· ASSIGNED (1) . , -· -. . • , ., .. 1
•• • ' .... ,. • ., • I ",· II
lnvolvemenl D(1l u
07/15/2018 00:48:34
Person
Person
"ti Last Namo
~ PARKER
r.J) Addi ens
0 918 5TH AVES z
Frank SW20573
PARKER , DEREK MARQUIS
(REGISTERED OWNER)
(/) DOB:
_ Ago al tltr1t1 of incident: 30 ....
Gomle1
M
-Addlional lnf<,rrnatioi1
Fin,1 Nwne
DEREK
Cily
STILLWATER
Pt1orw
Reporting
Middle Narno
MARQUIS
Slate Zip
MN 55082
Sutlix
C,mni•y
Officer observed a large group of disorderly people walking In the 900 block of 5th Ave S. The group then entered the residence at 918
5th Ave S. Officer advised the homeowner PARKER of the inci dent who stated he would take responsibi11ty for the group for the ni ght.
PRINT DATE 04/30/2019 TIME 11:46:26 PAGE 1 OF 1
Attn: Bill Turnblad
216 4th Street North
Stillwater MN 55082
651-430-8821 Phone
bturnblad@ci.stillwater.mn.us
Problem Property License Application
New License ---
2"d Year ---
3rd Year ---
Date Received -----------
Amount Paid -----------
Rental Property Address: ________________________ _
Type of Dwelling: __ Single Family Detached
__ Multiple Family
Number of Bedroo ms : ___ _
__ Two-Family
Property Owner's Name/Mailing Address: __________________ _
Name
Street Address City State/Zip
Contact Phone # 2nd Contact Phone# Email Address
Type of ownership : Individual __ Partnership __ Corporation
Date property received Section 38-5 listing* __________ _
Please contact Bill Turnblad, Community Development Director, if there is a change of
ownership. In the act of filing this application with the City of Stillwater, the owner of the
rental unit(s) agrees to license inspections.
Signature of Owner Date
*This is the date of the letter of listing notification from the City Administrator
EXHIBIT B
EXHIBIT B
Notice of Appeal
Mr. Thomas McCarty
RECEIVED
OCT -. 2 ·~019
City of Sf'lt. .. Ad . . 1 •vvater mrn ,s t-t· •q/On
Hello, my name is John Prosser and today is 10/2.19 and I hereby request a Notice of Appeal
following the allegations of a "Problem Property" License being placed on my house which I am
the Owner but do not live in. The City Counsel issued me a registered Letter. I recently had my
right Knee replaced which got infected and I was unable to walk for 3 weeks. My mother Passed
away September 21st. Between me being physically impaired and my mothers Death, I was
unable to pick up the Registered Letter until September 26th 2019. I was never issued a warning
about my tenants and I did not know about the police being called on numerous occasions. There
was no letter or phone calls to me from the police department and I am completely blindsided by
this. According to my tenant Derek Parker after speaking with him he has been experiencing
problems with one of the neighbors. I have had Derek in my home located at 918 5th Ave S
Stillwater MN 55082 for 9 years and have never heard of any problems until recently. Derek told
me that the first time the police came to my home about noise he did have some people over and
he did say that the music was a bit loud so the police came and Derek told them that he would
keep it down and they didn't have any further problems. Derek also told me that a few times the
police came to my house during the afternoon. One incident was about 2 in the afternoon and the
police came to say they heard people were on the roof smoking weed. Derek as well as I don't
smoke and don't allow drugs in the home, that is one of my rules. Some of his friends were
playing on the roof. Derek told the police no one was smoking, and the police left. Derek just
recently told me about the multiple times the police came to the home without any crimes being
committed or even any noise violations and I am just now finding out about all of this.
According to Derek there is only 1 neighbor that is calling the police to the home. He has even
asked one of the Police Officers ifthere were numerous people calling the police and the officer
told him "It's an individual". In Every report from the police they state that there was no further
incident after asking Derek or his friends to keep it down. I believe most of the neighbors have
my phone number and no one has called me about this. My home is Not a "Problem Property and
my tenants are Not bad tenants. I believe there would be multiple neighbors calling the police if
there was a problem. I feel I would have been issued more then 1 letter and there was only one
ticket issued to Derek for a noise violation to the home and it has been paid for. The Letter from
the Post Office said I had until 10/10/19 to pick up the Letter, so again I will state that I had knee
surgery that got infected and I was unable to walk or drive. I am still using my walker and
sometimes have trouble walking. I can provide proof of my surgery as well as doctors notes if
needed. I say this because I noticed that I was given 10 days to Appeal. My tenant Derek Parker
responded the day I picked up the letter and sent in a notice of appeal, but I am just now getting
the message that I (John Prosser) need to Appeal. If this issue needs to be taken to court, please
issue a court date to me and mail it to 906 5th Ave S. Stillwater MN 55082 which is where I live.
I am 66 years old and have never had something like this happen and I am very confused on
what is going on. Please feel free to call me anytime at 651-4 72~4129
EXHIBIT C
EXHIBIT C
Minnesota Uniform Conveyancing Blanks
Form No. 111-M-Personal Representative's Deed
Individual Personal Representative to Individual
3L{06Q, ;)0.~~.Q0/7
ST A TE DEED TAX DUE HEREON: $429.00
Date: August I rt tn , 2010
Receipt#: 140913
PRD
SDT
Conservation Fee:
CRV Filed
No Delinquent Taxes
Transfer Entered
Retumto:
LAND TITLE -RECORDINGS
1900 SILVER LAKE ROAD
SUITE 200
NEW BRIGHTON MN 55112
$46.00
$429.00
$5.00
3806120
11111111m11
Certified Filed and/or recorded on:
9/08/2010 10:30 AM
3806120
Office of the County Recorder
Property Records & Taxpayer Services
Washington County, MN
Kevin J Corhid, Counti, Recorder
Molly O Rourke, Audit~r Treasurer ----_______________ _)
FOR VALUABLE CONSIDERATION, Michael J. Frazer, Personal Representative of The Estate of Rita
A. Frazer, a/k/a Rita Ann Frazer hereinafter referred to as Grantor, Single at the time of death ,hereby
conveys to John A. Prosser, hereinafter referred to as Grantees, real property in Washington County,
Minnesota, described as follows:
SEE ATTACHED EXHIBIT "A"
~ The Seller certifies that the Seller does not know of any wells on the described real property.
DA well disclosure certificate accompanies this document.
D I am familiar with the property described in this instrument and I certify that the status and number of wells
on the described real property have not changed since the last previously filed well disclosure certificate.
(if more space is needed, continue on back)
lLlgL·thL"r ,, 1 tl1 .11 I licrcJ1 lame ms and appurtenances belonging thereto, except Reservations, Declarations,
Covenants, Restrictions and Easements of record, if any.
Affix Deed Tax Stamp Here
ST A TE OF Minnesota
COUNTY OF Ramsey
The foregoing instrument was acknowledged before me this / J fh day of August, 2010 by Michael A. Frazer,
Personal Representative of The Estate of Rita A. Frazer, a/k/a Rita Ann Frazer
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
KAYLA STAN I US
Notary Public
State of Minnesot.a
My Commission Expires
Jonuory3l,2014
THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS)
Key Title, Inc.
2103 East County Road D, Suite B
Maplewood, MN 55109
..34 -03d -26-22--ooL.9
Tax Statements for the real property described in this
Instrument should be sent to (Include name and
address of Grantee)
John A. Prosser
918 5th Ave. S., Stillwater, MN 55082
RETURN TO: O
LAND TITLE, INC.
1
' ' ' EXHIBIT II A II
LEGAL DESCRIPTION
Lots Four (4) and Five (5), Block Sixteen (16), Hersey, Staples & Co's Addition to the City of Stillwater,
Washington County, Minnesota ·
EXHIBIT D
EXHIBIT D
l'orm No . 1-M -WARIUNTY DEEDAIJG
iiomauiil(Sftolni:1iv1dual(sj ~-
County Auditor
Deputy
Date: __ __.,_f ..... u.._._f _y ..... J......,...fo ___ , 19 __26
i
I
900980
0 ~~'.1:E .:;·
::;o UHiY c~~'./F;C FR
w.-..SHi HG:')N CCLr FY
(reserved for recording data)
FOR VALUABLE CONSIDERATION, Guy W~e Hesse and Jarrie L, Hesse. busJ:vuxi and wife
-------------------------------------, Graotor(s), (marital sta tus)
hereby convey(s) and warrant(s) to _--=.J.;:;.ohn=-'A:..e.::... -'P""'r""'o~s~s,,.,ecir.__ _________________ _
_____________ ......__ _______________________ , Grantee(s),
real property in ____ W_as_hlngt_'_...._a_n _______ County, Minnesota, described as follows:
lots 1 and 2, Block 16, Hersey, Staples and Co's Mdition to Stillwater
The seller certifies that the seller does not kncM of any wells on the describei
property.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions:
STATE OF MINNESOTA '-
} ss.
COUNTY OF ~----~
The foregoing instrument waU:::edged before me this ~ (, day of _ _,<1 ___ ,._L.t, ___ , 19~,
by Gary Wayne Hesse and Jarrie L. Hesse, husband and wife ~
Notarial stamp or seal (or other title or rank)
0 ROSEMARIE ULRICH
NOTARY. PUBLIC-MINNESOTA
RAMSEY COUNTY
My Coomssion Expires Jan. 31 , 2000
This Instrument was drafted by (name and address)
First Security Title
1868 Beam Avenue
Maplewood, MN 55109
96-13273
33606502
-= /D { , Grantor(s).
~~7~
nature of person taking acknowledgment
T ax Statements for the real property described in this instrument
s ho uld be sent to (Include name and address of Grantee ):
Norwest
loan No.
Grantees: John Prosser
906 5th Avenue South
Stillwater, MN 55082
EXHIBIT E
Owner
Problem Property
EXHIBIT E
906 5th Avenue South O
918 5th Avenue South
••• ..... ••
n ••••
* 1 m in
140 ft
EXHIBIT F
906 5th Ave. So.
Owner
918 5th Ave. So.
Problem Property EXHIBIT F
EXHIBIT G
CASE#
SW18007463
OFFICERS ASSIGNED (8)
Involvement Date Name Type
07/15/2018 00:07:56 Lund SW19285 Reporting
07/15/2018 00:07:56 Young SW20920 Assisting
07/15/2018 00:19:13 Frank SW20573 Assisting
07/15/2018 19:29:00 Willmarth BP14627 Assisting
07/15/2018 19:29:00 Schroeder OP24029 Assisting
07/15/2018 19:29:00 Olson SW19701 Assisting
07/15/2018 19:29:00 Papke WC11600 Assisting
Description: NOISE COMPLAINT/DISTURBANCE
Disposition:
EVENT DETAILS
PARTIES INVOLVED (3)
SUMMARY
Suspect #1 PARKER , DEREK MARQUIS
Suspect #2 PROSSER , JOHN ARTHUR
Person Hansen , Audrey Jean
WHEN REPORTED EVENT LOCATION
07/14/2018 23:37:00
REC'D BY: RADIO
901 6th Ave S
STILLWATER, MINNESOTA 55082
SUSPECTS (2)Suspect #1
Last Name
PARKER
First Name
DEREK
Middle Name
MARQUIS
Suffix
Address
918 5TH AVE S
City
STILLWATER
State
MN
Zip
55082
07/1988
Age at time of incident: 30
Gender
M
Phone
6514307075 (H)
Addtional Information
Related Offenses
38.2.1 Noisy party or gathering 9000 MISC CODE 9999
Suspect #2
Last Name
PROSSER
First Name
JOHN
Middle Name
ARTHUR
Suffix
OFFENSE(S)
Offense Charge Level Offense Status
38.2.1 Noisy party or gathering 9000 MISC CODE 9999 MISDEMEANOR EXCEPTIONALLY CLEARED
PRINT DATE 10/10/2019 TIME 11:12:37 PAGE 1 OF 5
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
216 4th Street N
Stillwater, MN 55082
651-439-9381
EXHIBIT G
Address
906 5TH AVE S
City
STILLWATER
State
MN
Zip
55082
Country
DOB:
Age at time of incident: 65
Gender
M
Phone
6514724129 (
Addtional Information
Related Offenses
38.2.1 Noisy party or gathering 9000 MISC CODE 9999
PERSONS (1)Person (COMPLAINANT)
Last Name
Hansen
First Name
Audrey
Middle Name
Jean
Suffix
Address
901 6TH AVE S
City
STILLWATER
State
MN
Zip
55082
Country
10/1955
Age at time of incident: 63
Gender
6512168355 (C)
Addtional Information
OFFICER COMMENTS
Responded to a noise complaint. Located a very large party occurring at both 906 & 918 5th Ave S. Approximately 50-75 vehicles on both
sides of the street and approximately 150 people. Many of the attendees were rude/insulting to law enforcement. It appeared that a
significant amount of the attendees were under 21. Alcohol and marijuana use was obvious. DEREK MARQUIS PARKER, DOB
04/07/1988 and JOHN ARTHUR PROSSER, DOB 02/03/1953 were mailed citations for hosting a loud party (City ordinance 38.2.1). See
report.
NARRATIVES (3)
Supplemental Young SW20920 07/15/2018 18:49:40
Narrative
On July 14, 2018 at 2337 hours I, Officer Dan Young, responded to the address of 901 6th Ave S in Stillwater for a loud noise and loud
party complaint. Upon arrival, officers determined the loud party was taking place at 906 5th Ave S. From my position one block to the
west of that location I could clearly hear loud voices from the home and residence at 906 5th Ave S. Officers responded to that location to
make contact with the homeowner.
It should be noted that while traveling to 5th Ave S I observed numerous vehicles parked on both sides of the street on 5th Avenue, as
well as both sides of Dubuque Street. In my estimation there were between 50 and 75 vehicles parked on the streets in a several block
radius south, east, and west of the party location. Many of the vehicles appeared to be occupied, while parked, and I also observed many
people on foot walking through the streets and in the front yards of homes of 5th Avenue S.
Officers proceeded passed the occupied vehicles on foot, as parked traffic on 5th Avenue congested the street to the point that a squad
car would have difficulty navigating. Upon arrival at 906 5th Avenue I proceeded up the driveway and observed an extremely large party
taking place within and around the residence. I observed approximately 30-40 people on an attached ground level deck of the home. I
also observed several people on an elevated deck off the north side of the house. The residence is fitted with large picture windows on
both the ground floor and second floor. Through those windows I could plainly see a large group of people on the main level in what
appeared to be living room and kitchen area. I also observed numerous parties on the second floor of the residence. There were also
approximately 10-20 people milling about the driveway and yard area immediately north of the home.
The entire area around the yard had an extremely strong smell of marijuana smoke, and I observed numerous parties actively smoking
what appeared to be marijuana on the deck of the house.
From my initial observation it appeared that the home at 906 5th Avenue S was in the process of being renovated. Through the second
story windows I could see exposed studs and ceiling trusses completely devoid of any finished sheet rock or plaster. The main floor of the
residence had a similar appearance.
PRINT DATE 10/10/2019 TIME 11:12:37 PAGE 2 OF 5
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
CASE# SW18007463 cont'd
216 4th Street N
Stillwater, MN 55082
651-439-9381
I addressed a party seated on the ground level deck and asked her where the homeowner was. She promptly and rudely replied that this
was private property and officers needed to ³swerve.´A second person on the deck parroted her response, telling me they weren¶t scared
of the police and we had no business being there. Neither party was the homeowner. The crowd on the deck began to stand up and
make profane and belligerent comments toward officers about our apparent illegal entry onto the property while they filed into the home.
Ultimately all parties from the outside of the home made entry into the home and all doors were closed in an apparent attempt to bar law
enforcement from having further contact at the home. It is my estimation that there were approximately 150 people inside the home and
on the property during the course of this party.
Ultimately officers were able to make contact with the homeowner who was identified as JOHN ARTHUR PROSSER DOB 02/03/1953.
PROSSER came to the door and appeared extremely disoriented. He made statements to me indicating he did not realize how many
people were at his home, and advised his renter DEREK had had a party that had apparently gotten out of hand. It should be emphasized
however that PROSSER was summoned by officers and located within the home, and it is highly unlikely that he was unaware of the large
number of people having an extremely loud party in his own home while he was present.
I along with other officers on scene advised PROSSER that as the homeowner he was ultimately responsible for the party and he would
be the one to be charged for any ordinance violations, if charges were to be filed. PROSSER was further advised that though officers had
no proof, officers believed there were probably underage individuals within the home, likely consuming alcohol. PROSSER was told he
could also be liable for providing alcohol to minors should an incident result after minors had been on his property.
I remained on scene with other officers while the partygoers were told to disband and leave the area, as the party was over. Ultimately
officers remained on scene for approximately one hour, encouraging people to leave both 906 5th Avenue S, and the related home of 918
5th Avenue S, which PROSSER advised he also owns and rents to DEREK MARQUIS PARKER DOB 04/07/1988. Both homes appeared
to be crowded with people during this event.
During the evening hours of 07/15/18 I made contact by phone with the initial complainant of this call. I spoke with AUDREY JEAN
HANSON DOB 05/10/1955. HANSON advised her residence is directly west of 906 5th Avenue S, and she can see PROSSER ¶S
residence out her bedroom window. HANSON stated she and her family had gone to bed at approximately 2200 hours on 7/14/18. She
stated she was aware of the party taking place at PROSSER¶S residence, as she could clearly hear and see the numerous parties moving
about PROSSER¶S property. HANSON stated the noise generated by the party was loud enough that she put earplugs in her ears to try
to fall asleep, as she was unable to sleep in a normal fashion. HANSON further stated her husband ended up leaving their bedroom to try
to sleep elsewhere in the home, as the noise was keeping him awake as well. HANSON stated by 2300 hours she was frustrated enough
with the noise that she called the police.
HANSON advised PROSSER and or PARKER host parties at PROSSER¶S house almost every Saturday night. She further stated she
believes PARKER to work most nights of the week, with the exception of Saturdays. She advised the parties typically involve a large
number of guests, whom she believes to be friends of PARKER. HANSON advised PROSSER and PARKER are in a significant
relationship and appear to live together. HANSON stated there is often loud rap music with profane lyrics played at the parties, and the
party guests themselves can clearly be heard yelling, swearing, or otherwise making loud profane statements. HANSON advised she has
children, three of whom are younger than 9 years old. She stated on several occasions she has brought her children inside the home to
limit their exposure to the profanity taking place across her backyard at PROSSER¶S home.
HANSON advised she was watching the incident unfold as officers arrived on scene the night before. She stated she watched a large
group of people flee the yard area upon learning the police were on scene. HANSON stated these partygoers proceeded to jump
neighboring fences into neighbors¶yards, presumably to evade contact with law enforcement. HANSON advised on numerous past
occasions she herself has seen unknown parties in her own yard, urinating, vomiting, or otherwise milling about her property. HANSON
stated this makes her and her husband uncomfortable, as she does not know the people coming onto her property, and does not know
their intentions for being there. HANSON advised she and her husband are uncomfortable confronting the people on her property due to
the late hour and their possible intoxication.
HANSON did advise that she has been hesitant to contact police in the past because she did not want to create tension in the
neighborhood. HANSON eluded to prior civil litigation taking place between PROSSER and other neighbors, stating she did not want to
be drawn into similar activity for filing complaints, and until now her family has largely put up or contended with the parties. HANSON
advised other neighbors feel the same way.
I advised HANSON to inform her husband and neighbors that they should call law enforcement anytime they feel police action is
necessary regarding suspected violations of law or city ordinance. I further advised her that she should call anytime she observes a
suspicious person on her property. HANSON stated she understood and would relay the message to her neighbors. I thanked her and
ended the call.
Initial Report Lund SW19285 07/15/2018 19:04:48
PRINT DATE 10/10/2019 TIME 11:12:37 PAGE 3 OF 5
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
CASE# SW18007463 cont'd
216 4th Street N
Stillwater, MN 55082
651-439-9381
Synopsis:
Officers were dispatched to the area for a loud party complaint and located a large party
occurring at 906 5th Ave S and 918 5th Ave S. There was an estimated 50-75 vehicles
parked occupying several blocks surrounding the residences with approximately 150
party attendees between the 2 residences. DEREK MARQUIS PARKER, DOB
and JOHN ARTHUR PROSSER, DOB were mailed citations for
hosting a loud party (City ordinance 38.2.1).
Narrative:
At approximately 2337 hours on July 14th 2018, I Officer Zach Lund #2216 was
dispatched to a loud party complaint near the 900 block of 6th Ave S. Loud music and
voices could be heard to the East of 6th Ave S. I then drove to the 900 block of 5th Ave S
and observed vehicles parked on both sides of the street for several surrounding blocks.
There were numerous people in the street and sitting in vehicles in the 900 block of 5th
Ave S. I observed a steady stream of people walking south bound from the end of the
street. There was a heavy odor of burnt marijuana coming from the area and loud music
was being played from the inside of the residence. I walked to the end house (906 5th
Ave S) and observed a large party occurring at the residence. The residence had large
windows on the north side and it appeared that there were approximately 100 individuals
inside the house, porch, and deck. Numerous alcoholic beverage bottles were observed
strewn about the house/property along with several people using marijuana in plain sight.
Many of the attendees appeared to be under the age of 21. Party attendees announced
police presence which sent approximately 25 people running from multiple exits at the
residence. A male and female on the deck advised us that it was private property and
told police officers to "swerve". Party attendees inside the residence closed themselves
inside and numerous attempts to identify the home owner were initially unsuccessful.
I then asked for assistance from other law enforcement agencies as we were receiving
rude/disrespectful comments from some of the party attendees such as "Fuck the police"
and "Fucking pigs". Officers advised people that the party was in violation of city
ordinances and advised people that they needed to disperse from the area.
After approximately 15 minutes of knocking on doors and asking people for the
homeowner, a male appeared at the door and identified himself as the owner. He
identified himself as JOHN ARTHUR PROSSER, DOB He stated that he
had purchased both 906 and 918 5th Ave S and was in the process of remodeling both
residences. The residence did appear to be mostly "gutted" and exposed studs, walls,
and trusses could be observed from outside of the residence. PROSSER stated that his
tenant "Derek" was throwing the party and that he hadn't realized how many people were
actually at his residence. PROSSER admitted that the party was probably too big and it
PRINT DATE 10/10/2019 TIME 11:12:37 PAGE 4 OF 5
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
CASE# SW18007463 cont'd
216 4th Street N
Stillwater, MN 55082
651-439-9381
was out of control. He denied knowing most of the individuals at the party and said that
they were "Derek's" friends. PROSSER denied any knowledge of underage consumption
occurring at either residence. PROSSER invited Officers into the entry way of the
residence and the odor of burnt marijuana along with a haze of smoke was observed.
A male then came to the front door and identified himself as DEREK MARQUIS
PARKER, DOB 04/07/1988. PARKER stated that he was having a party at the residence
and stated that he stays at the residence. PARKER was advised of the violation of city
ordinance and that the party needed to end. PARKER denied knowledge of underage
consumption occurring at the residence however he admitted to not checking ID'S.
PARKER stated that he was a law enforcement major and stated that he was not
supplying anyone with alcohol therefore he could not be charged with furnishing alcohol
to minors. PARKER stated that he would stop the party and ask people to leave. DVS
shows PARKER'S listed address as 918 5th Ave S in Stillwater, MN.
Officers were on scene for approximately 1 hour trying to get party attendees to disperse
from the area. We were again met with numerous rude/disrespectful comments. I
estimate that another 50 individuals exited the 2nd house of the party at 918 5th Ave S.
After a majority of people had left the area officers cleared.
Conclusion:
DEREK MARQUIS PARKER, DOB was sent citation #820612819603 via
certified male for hosting a loud party (City Ordinance 38.2.1).
JOHN ARTHUR PROSSER, DOB was sent citation #820612819602 via
certified male for hosting a loud party (City Ordinance 38.2.1).
Case cleared by citation.
Initial Report Lund SW19285 08/20/2018 20:02:50
I Officer Lund #2216 received a certified letter return from the postal service. A citation (#820612819603) had been mailed to DEREK
MARQUIS PARKER, DOB I attempted to hand deliver the citation on 8/20/2018 at 2000 hours with no answer. I sent an
email to office staff to dismiss the citation as it hadn't been received and to forward this report to the city attorneys office for formal
complaint charges to DEREK MARQUIS PARKER, DOB for hosting a noisy party, City Ordinance #38.2.1. Cleared.
PRINT DATE 10/10/2019 TIME 11:12:37 PAGE 5 OF 5
INCIDENT REPORT
STILLWATER POLICE DEPARTMENT
CASE# SW18007463 cont'd
216 4th Street N
Stillwater, MN 55082
651-439-9381
EXHIBIT H
EXHIBIT H
October 8, 2019
John A. Prosser
906 5th Ave. S.
Stillwater, MN 55082
iltwat
Ad.mi is atio
HAND DELIVERED
RE: Appeal of Problem Property Designation for Property at 918 5th Ave. S.
Dear Mr. Prosser:
The City of Stillwater received your timely Notice of Appeal on October 3, 2019 regarding the
declaration by the City that property owned by you and located at 918 5th Avenue South, Stillwater,
MN has been placed on the City of Stillwater Problem Properties List.
The Stillwater City Council will hear your appeal at its regular meeting on Tuesday, October 15,
2019 at 7:00 PM at Stillwater City Hall located at 216 4th Street North, Stillwater, MN. At the
hearing you may be represented by an attorney, you will have the opportunity to present testimony,
you shall be able to call and question witnesses and introduce any exhibits you feel are relevant.
Very truly yours,
9-~
J. Thomas McCarty
City Administrator
C: City Council
Korine Land, City Attorney
John Gannaway, Police Chief
Bill Turnblad, Community Development Director
Beth Wolf, City Clerk
Derek Parker, Tenant
216 4th Street N, Stillwater, MN 55082 651-430-8800 Website: www.ci.stillwater.mn.us
RESOLUTION NO. 2019-
CITY OF STILLWATER
WASHINGTON COUNTY, MINNESOTA
A RESOLUTION UPHOLDING THE DESIGNATION OF 918 5TH AVE. SOUTH,
STILLWATER, AS A PROBLEM PROPERTY
WHEREAS, pursuant to Stillwater City Code Section 38-5, the City Administrator
designated 918 5th Ave. South, Stillwater, Minnesota (“the Property”) as a problem property;
and
WHEREAS, the owner of the Property is John Prosser (“the Owner”); and
WHEREAS, the City Administrator sent a letter by certified mail on Sept. 17, notifying
the Owner that the Property was designated as a problem property and that the Owner
would be required to apply for a problem property’s license; and
WHEREAS, the Owner appealed the designation as a problem property; and
WHEREAS, the City Council held an appeal hearing on the designation on October
15, 2019 and received evidence and testimony from the City and gave the Owner an
opportunity to be heard.
NOW, THEREFORE, be it resolved that the City Council of the City of Stillwater
hereby FINDS:
1. The City Administrator’s designation of the Property at 918 5th Ave. South as
a problem property is UPHELD; and
2. The Owner shall have 30 days from the date of this Resolution to apply for and
obtain a problem property’s license, which shall include the completion of an
inspection and payment of the appropriate fees.
Enacted by the City Council of the City of Stillwater, Minnesota this 15th day of October, 2019.
CITY OF STILLWATER
Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Clerk
MEMORANDUM
TO: Mayor and City Council
FROM: Shawn Sanders, Director of Public Works
DATE: October 10, 2019
RE: Feasibility Study for 2020 Street Improvement Project (Project No. 2020-02)
DISCUSSION
Engineering staff would like to proceed with the 2020 Street Improvement Project. Authorization of a
feasibility study is the first step in the process. It is proposed that the following streets be considered for the
2020 Street Improvement Project:
Reconstruction
Fourth Street South (Laurel St E to Wilkins St E)
Greeley Street (North of Myrtle)
Linden Street (Everett St to Owens St)
William Street (Mulberry St to Linden St)
School Street (Third St to Fourth St)
Aspen Street (East of Fourth St)
Maryknoll Drive (Oakridge Rd to Interlachen Dr)
Mill and Overlay
Croixwood Boulevard
Northland Avenue (Interlachen Dr to Sunrise Ave)
Nightingale Boulevard (Northland Ave to Marine Cir)
Marine Circle
Driftwood Lane
Wildcrest Lane
Fairlawn Drive
Edgewood Court
Edgwood Avenue
The total length of the streets listed above is 4.37 miles. The feasibility study will analyze pavement
conditions, subsurface soils, curb needs, storm sewer needs, sidewalk considerations, and utility needs.
RECOMMENDATION
Staff recommends Council pass a resolution authorizing the preparation of a Feasibility Study for street,
water main, sidewalk, sanitary, and storm sewer improvements for the streets listed above for the 2020 Street
Improvement Project.
ACTION REQUIRED
If Council concurs with the recommendation, they should pass a motion adopting Resolution No.
2019-___, RESOLUTION ORDERING PREPARATION OF FEASBILITY REPORT FOR 2020
STREET IMPROVEMENTS (Project 2020-02).
RESOLUTION ORDERING PREPARATION OF FEASIBILITY
REPORT FOR 2020 STREET IMPROVEMENT PROJECT
PROJECT 2020-02
BE IT RESOLVED BY THE CITY COUNCIL OF STILLWATER, MINNESOTA:
That the proposed improvement be referred to the City Engineer for study and that he is
instructed to report to the Council with all convenient speed advising the Council in a
preliminary way as to whether the proposed improvement is feasible and as to whether it should
best be made as proposed or in connection with some other improvement, and the estimated cost
of the improvement as recommended.
Adopted by the Council this 15th day of October 2019.
___________________________________
Ted Kozlowski, Mayor
ATTEST: ____________________________
Beth Wolf, City Clerk
GREELEY ST.LINDEN ST.WILLIAM ST.4TH ST. NSCHOOL ST.ASPEN ST.CROIXWOOD BLVD.CROIXWOOD BLVDNORTHLAND DRIVENIGHTINGALE BLVDMARINE CIRCLEMARINE CIRCLE CT.DRIFTWOOD LN.WILDCREST LN.FAIRLAWN DR.EDGEWOOD CT.EDGEWOOD AVE.MARYKNOLL DR. NLEGENDPROPOSED MILL ANDOVERLAYPROPOSEDRECONSTRUCT2020 STREET IMPROVEMENT PROJECTPROPOSED RECONSTRUCTION AREA
MEMORANDUM
To: Mayor and City Council
From: Shawn Sande~Director of Public Works
Date: October 11, 2019
Re: St. Croix River Riverbank Stabilization and Riverwalk Project
(Project 2016-06)
DISCUSSION
Earlier this year the City obtained the services of AMI consulting for the design of the plans and
specifications for the St. Croix River Riverbank Stabilization and Riverwalk Project This
project would stabilize the riverbank in area south of Nelson Street to the southerly City limits
and install a river walk along the St. Croix from South of Nelson Street south to the Shoddy
Mills Buildings. Staff has reviewed the plans and is requesting approval of the plans and
specifications and of the authorization to bid. Bid opening is scheduled for November and bid
results will be presented to Council at the November 19 meeting. Construction is set for this
winter.
RECOMMENDATION
It is recommended that Council approve plans and specifications for the St. Croix River
Riverbank Stabilization and Riverwalk Project and order advertisement for bids.
ACT[ON REQUrRED
If Council concurs with the recommendation, they should pass a motion adopting
RESOLUTION 2018-APPROVING PLANS & SPECIFICATIONS AND
ORDERING ADVERTISEMENT FOR BIDS FOR ST. CROIX RIVER RIVERBANK
STABILIZATION AND RIVERWALK PROJECT
(PROJECT 2016-06)
RESOLUTION 2019----
APPROVE PLANS & SPECIFICATIONS
AND ORDERING ADVERTISEMENT FOR BIDS FOR THE
ST. CROIX RIVER RIVERBANK STABILIZATION AND RIVERW ALK PROJECT
PROJECT 2016-06
WHEREAS, the City hired AMI Consulting Engineers, P.A. to provide engineering services for the
St. Croix Riverbank Stabilization and Riverwalk Project and
WHEREAS, AMI Consulting Engineers, P.A. has prepared plans and specifications for the St.
Croix Riverbank Stabilization and Riverwalk Project and has presented such plans and specifications
to Council for approval.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
STILLWATER, MINNESOTA:
1. The plans and specifications presented by AMI Consulting Engineers, PA are hereby
approved.
2. The City Clerk is ordered to prepare and cause to be inserted in The Gazette an advertisement
for bids upon the making of the improvement under the approved plans and specifications.
The advertisement shall be published twice in the Stillwater Gazette and, shall specify the
work to be done, shall state that bids will be received by the City Clerk until Thursday,
November 8, 2019, at 10:00 am which time they will be publicly opened by the City
Engineer; will then be tabulated and will be considered by the Council at their next regular
Council meeting on November 19th, 2019 in the Council Chambers. Any bidder whose
responsibility is questioned during consideration of the bid will be given an opportunity to
address the Council on the issue ofresponsibility. No bids will be considered unless sealed
and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond or
certified check payable to the Clerk for ten (10) percent of the amount of the bid.
Adopted by the Council this 15th day of October 2019.
Ted Kozlowski, Mayor
Attest:
Diane F. Ward, City Clerk
TO: Mayor & City Council Members
FROM: Sharon Provos, Finance Director
DATE: October 10, 2019
SUBJECT: Sanitary Sewer Rates
BACKGROUND
The Sanitary Sewer Fund is a Proprietary Fund. Proprietary fund sources of funding mainly come from
user fees.
There are two parts to the sanitary sewer rate: (1) the base rate (also called the minimum
charge); and (2) the overage charge. Currently, the charge for the base rate is $43.00 per quarter
for the first 10,000 gallons and the overage charge is $5.60 per quarter per 1,000 gallons over the
base. The last sanitary sewer rate increase occurred in January 2018.
In 2019, the City hired BakerTilly to perform a rate study of the sanitary sewer rates. In order to
meet the City’s goals of funding the sanitary sewer operations, funding sanitary sewer capital outlay,
repaying borrowed cash and funding a reserve, BakerTilly recommended two possible scenarios:
1. Issue debt annually for the next five years and increase rates 15% in 2020 and 2021 and
3% in 2022, 2023 and 2024.
2. Issue debt in 2020 and increase rates 18% in 2020 and 2021 and 3% in 2022, 2023 and
2024.
During the 2019 Preliminary Budget discussions, City Council directed City staff to proceed with
scenario 2 and to add Met Council’s rate adjustment (8.478% in 2020) to the 18% sanitary sewer rate
increase for 2020. The combined total increase will be 26.487%.This would result in a base rate of
$54.00 and an overage charge of $7.00.
RECOMMENDATION
Staff recommends raising sewer rates.
ACTION REQUIRED
If Council concurs with staff recommendation to raise sanitary sewer rates, Council should pass
resolution amending the sanitary sewer rates.
RESOLUTION 2019‐xxx
A RESOLUTION AMENDING RESOLUTION 2018‐273
ADOPTING 2019 FEE SCHEDULE
WHEREAS, the Stillwater City Council adopted Resolution 2018-273 entitled
“Resolution adopting 2019 Fee Schedule” on December 18, 2018, which included
sanitary sewer rates; and
WHEREAS, the City' s auditor has recommended that the City Council review
the rates and raise them to cover the deficit in the enterprise fund, and has been
reviewed by the City Council; and
WHEREAS, the Met Council annually adjusts waste water service rates
charged to cities.
These rates shall be reviewed annually and City sanitary sewers rates will be
adjusted accordingly.
NOW THEREFORE, BE IT RESOLVED by the Stillwater City Council that
Resolution 2018-273 is amended to reflect the following rates for the sanitary sewer,
beginning January, 2020:
Sanitary Sewer Rates
First Minimum Charge $54. 00
Overage Charge $7.00
Adopted by the Council this 15th day of October, 2019.
Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Clerk
Sanitary Sewer rates to change
Why are the rates changing?
On October 15th, the City Council adopted new in-
creased sanitary sewer rates to begin January 1, 2020.
Many factors have caused operation costs to increase.
The Met Council has continually raised rates every year.
In 2020, the Met Council will raise rates by 8.5% or
$166,640 that are charged back to the City. Some ma-
jor capital purchases for the City sanitary sewer system
totaling $2,200,000, are expected over the next five
years.
Operating costs
The main funding source for the sanitary sewer system
are user fees. Those fees are used to cover operational
and capital costs. For at least the past 10 years, operating
costs have exceeded monies coming in even with a rate
increase in 2018. Met Council, who provides waste man-
agement services to the City, is one of the biggest factors
of increased expenses.
The City will continue to assess the user fee structure an-
nually to ensure that operating and maintenance costs
are covered adequately.
How sewer rates are calculated
Sanitary Sewer Rates are based on water consumption. For residential properties, the water con-
sumption for the first quarter of each year is used to calcu-
late the sewer rate. For commercial properties, it’s the ac-
tual consumption for each quarter that is used to calculate
sewer rates.
Sewer rates are based on two rates, the base rate, and the
overage rate. The base rate is currently $43.00 for the
first 10,000 gallons used. The overage rate is currently
$5.60 per 1,000 gallons over the base.
The new adopted rates will increase the base rate by
$11.00 and the overage rate by $1.40.
Start using water wisely today
We encourage you to find ways to reduce your water and sewer use. Remember low-
er water usage is rewarded with lower sewer rates.
Indoor Tips
Check for and fix leaky toilets and faucets. Leaks can account for almost 13% of in-
door water use.
Run the dishwasher and washing machine only when full to save 1,000 gallons a
month.
Install a low-flow showerhead.
When washing dishes by hand, don’t let the water run. Fill one sink with wash water,
the other with rinse water.
Outdoor Tips
Water your lawn only when needed. Your lawn only needs about 1 inch of water a week.
Or better yet don’t water your lawn. It will get green when it starts raining again.
Water early in the morning or late in the evening to minimize evaporation. Also,
avoid watering on windy days.
Adjust your sprinklers to water only your lawn/garden and not your house or drive-
way.
Mulch around plants to reduce evaporation.
Give pets a bath in an outdoor area that needs water.
You can have your City of Stillwater quarterly bills*
automatically deducted from your checking or savings
account. See the back of your billing statement.
Once you have signed up for automatic payments, it will remain in effect until you
give the City of Stillwater notification to terminate.
*NOTE: The City of Stillwater quarterly utility bill includes fees for sanitary sewer, storm
sewer, and signs and lighting ONLY. This does NOT include your water bill. Water is billed and paid
separately to the Stillwater Board of Water Commissioners.
Billing Quarter Automatic Payment
Will Cover
Automatic Payment
Request Received by
Automatic Payment
will Occur
1st Quarter (January to March) March 15 April 10
2nd Quarter (April to June) June 15 July 10
3rd Quarter (July to September) September 15 October 10
4th Quarter (October to December) December 15 January 10
TO: Mayor & City Council Members
FROM: Tom McCarty, City Administrator
DATE: October 9, 2019
SUBJECT: Community Solar Garden Subscription Agreement Between Sunrise
CSG, LLC and the City of Stillwater for the Sunrise Solar Garden
BACKGROUND
In 2013, the Minnesota State Legislature directed Xcel Energy to create a program for
community solar gardens. Community solar gardens are centralized shared solar project
connected to the energy grid that has multiple subscribers and each subscriber receives a
credit on their Xcel energy bill based upon the production of the solar facility and their
subscription share of the solar garden facility.
In September 2018, the City approved two 25-year Solar Garden Subscription Agreements
with ReneSola Energy, Inc. for solar gardens (Lindstrom and Lent solar gardens) located in
Chisago County for 1,389,696 kWh of electric energy consumption equaling approximately
21% of the City’s total annual electric energy usage. The allocation of these solar
subscriptions are for the St. Croix Valley Recreation Center and Lily Lake Ice Arena. These
City facilities consume approximately 2,100,000 kWh of electric energy annually;
approximately 1/3 of the City’s annual electric energy consumpt ion. When fully operational,
the ReneSola Energy, Inc. solar garden subscriptions will result in an estimated energy
savings exceeding $1,000,000 over 25 years through the Xcel Energy electric bill credit.
The Lindstrom solar garden came online earlier this year. However, the Lent solar garden
site was not permitted, so ReneSola, now Sunrise CSG, LLC, is offering the Sunrise Solar
Garden Subscription Agreement for the Sunrise solar garden located in Chisago County,
replacing the previously approved Lent Solar Garden in Chisago County.
In addition, the City recently approved participation in the Minnesota GreenStep Cities
program. One of the GreenStep Cities Best Practices is benchmarking energy usage in City
facilities and identifying energy savings opportunities. Community solar garden
subscriptions assist the City in implementation of the GreenStep Cities Best Practices.
RECOMMENDATION
Based upon the estimated financial savings to the City in excess of $1,000,00 over the next
25 years in energy costs, and the City will be consuming cleaner, renewable energy, and the
Sunrise Solar Garden Subscription replaces the Lent Solar Garden subscription, staff
recommends City Council adopt the Resolution Approving Solar Garden Subscription
Agreement Between Sunrise CSG, LLC and the City of Stillwater.
RESOLUTION 2019‐
RESOLUTION APPROVING SOLAR GARDEN SUBSCRIPTION AGREEMENT BETWEEN
SUNRISE CSG, LLC AND THE CITY OF STILLWATER
WHEREAS, in 2013, the Minnesota State Legislature directed Xcel Energy to create a
program for community solar gardens; and
WHEREAS, a community solar garden is a centralized shared solar project connected
to the energy grid that has multiple subscribers and each subscriber receives a credit on their
Xcel energy bill based upon the production of the solar facility and their subscription share
of that facility; and
WHEREAS, the City of Stillwater believes that there is societal, financial and
environmental value in participating in community solar gardens; and
WHEREAS, the City Council previously approved (September 2018) two 25-year
Solar Garden Subscription Agreements with ReneSola, Inc. for the provision of 1,389,696
kWh of electric energy usage for the St. Croix Valley Recreation Center and the Lily Lake Ice
Arena which consume approximately 2,100,000 kWh of electric energy annually, equivalent
to approximately 1/3 of the City’s annual electric energy consumption; and
WHEREAS, ReneSola Energy, Inc. and Sunrise CSG, LLC have submitted a proposal to
provide the City of Stillwater with a 25- year solar garden subscription for the Sunrise Solar
Garden replacing the previously approved subscription for the Lent Solar Garden (solar
gardens located in Chisago County); and
WHEREAS, as a participant in the Minnesota GreenStep Cities program,
benchmarking energy usage in City facilities and identifying energy savings opportunities
through solar garden subscriptions assist in the implementation of one of the GreenStep
Cities Best Practices for the City of Stillwater.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Stillwater
hereby approves the Solar Garden Subscription Agreement between the City of Stillwater
and Sunrise CSG, LLC as hereby attached, and authorizes the Mayor of the City of Stillwater
to sign all necessary documents on behalf of the City of Stillwater.
Enacted by the City Council of the City of Stillwater, Minnesota this 15th day of October 2019.
CITY OF STILLWATER
_________________________________________
Ted Kozlowski, Mayor
ATTEST:
_________________________________________
Beth Wolf, City Clerk
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SUBSCRIPTION AGREEMENT (VOS Garden)
This Subscription Agreement, as amended from time to time (the “Agreement”), is entered into
this ____ day of _____________, 2019 by and between Sunrise CSG 1, LLC, a Minnesota limited
liability company (together with its successors and assignees, “Owner”) and City of Stillwater, a
Minnesota municipal corporation (together with any permitted transferees, “Subscriber”).
RECITALS
1. Owner is engaged in the business of developing, constructing and operating community
solar gardens as defined in Minn. Stat. Section 216B.1641 (2017) and related rules,
regulations, orders, and tariffs (each, a “CSG”). Owner is developing a solar photovoltaic
facility approximately 1.0 MW (AC) in size to be located on real property in Chisago
County, Minnesota (the “Project”). Subscriber is a retail electric customer of Northern
States Power Company d/b/a Xcel Energy (“Xcel”), receiving service at the address or
addresses set forth in Exhibit B.
2. Subscriber wishes to acquire Bill Credits associated with energy produced by this facility
and for which Subscriber is eligible.
3. Subscriber and Owner wish to enter into this Agreement to confirm Subscriber’s
participation in the Project and the terms and conditions for that participation.
NOW, THEREFORE, in consideration of the above recitals, the mutual promises set forth below,
and other good and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, Owner and Subscriber agree as follows:
AGREEMENT
ARTICLE 1
SUBSCRIPTION
1.1 Subscription. Owner agrees to sell and Subscriber agrees to purchase the right to receive
Bill Credits associated with the Energy Production of a portion of the Project
(“Subscription”) which consists of a percentage of the nameplate capacity of the Project,
as shown in Exhibit E (the “Allocation”).
1.2 Term. (a) This Agreement shall be effective upon its execution and delivery by Owner
and Subscriber and shall continue until the date that is twenty-five (25) years after the
Commercial Operation Date, unless earlier terminated in accordance with its terms (the
“Term”).(b) Prior to the Commercial Operation Date, either Party shall have the right to
terminate this Agreement, upon written notice to the other Party, and without further
obligation to the other Party, if (i) Subscriber is found to be ineligible to own a Subscription
or participate in a CSG, (ii) the Project cannot be installed due to physical or environmental
limitations at the site, (iii) Owner is unable to obtain any necessary permit for the Project,
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(iv) the Project fails to qualify as a CSG for any reason, (v) Owner cannot obtain Project
financing on terms and conditions reasonably satisfactory to Owner, or (vi) there is a
change in Applicable Laws or market conditions which make the Project no longer viable.
1.3 Allocation and Subscription. Subject to Subscriber’s initial and continuing eligibility (as
defined in Section 2.1), Subscriber’s Allocation entitles it to receive Bill Credits against its
monthly retail electrical bill from Xcel equal to (i) the Subscriber Energy for each
production month during the Term, multiplied by (ii) the then-current Bill Credit Rate.
1.4 Bill Credit Rate. The rate per kWh, as published by Xcel and shown in Exhibit D, that,
when multiplied by the energy generated by the Subscribers allocated percentage of the
project, determines the Bill Credit on a subscriber’s bill from Xcel. The Bill Credit Rate
for this agreement is the 2019 Value of Solar rate which establishes a predetermined annual
rate schedule for 25 years of the operation of the project.
1.5 Subscriber Bill Credit. The Subscribers bill credit will be determined by the Bill Credit
Rate, per the table in Exhibit D, times the energy generated by the allocated percentage of
a gardens total energy output, Shown in Exhibit E.
1.6 Ownership Limitation. Subscriber’s Subscription entitles it only to the Bill Credits
described in Section 1.3. Subscriber is not purchasing, and Owner is not selling or
transferring to Subscriber:
(A) any ownership or lien in any solar modules or other tangible component of the Project;
(B) any ownership or membership interests or rights in Owner or any entity which may
own the Project or any financial rights or distributions associated with such ownership;
(C) any right to any payment by Xcel to Owner with respect to Unsubscribed Energy or
related RECs;
(D) any rights in any other contract relating to the Project or to which Owner may be a
party;
(E) any right to manage, direct, control or operate the Project or Owner; or
(F) any Renewable Energy Credits (RECs).
ARTICLE 2
SUBSCRIBER ELIGIBILITY
2.1 Eligibility Requirements. Subscriber’s Subscription and its eligibility to receive, and
continue to receive, the Bill Credits to be acquired by this Agreement is expressly
conditioned upon Subscriber meeting the following criteria and any other eligibility criteria
outlined in Applicable Laws (“Subscriber Eligibility Criteria”) at all times during the Term:
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(a) Subscriber must receive retail electric service from Xcel at a service address located
within Chisago County or a contiguous county (the “Eligible Address”) and the Bill
Credits must be applied to the Xcel account(s) of Subscriber at the Eligible Address.
(b) Subscriber’s Allocation can account for no more than forty percent (40%) of the
capacity of the Project.
(c) The estimated Subscriber Energy (together with the subscribed energy from any other
subscriptions Subscriber may have in other CSGs) cannot exceed one hundred and
twenty percent (120%) of Subscriber’s average annual energy usage for the prior 24
months (if available) at the Eligible Address, which is calculated by Xcel at the time
the Subscriber is entered into the Xcel system (“Usage Limit”).
2.2 Energy Use Changes. If Subscriber’s electrical energy usage at the Eligible Address
declines or increases during the Term due to ordinary changes in usage patterns, installation
or use of energy conservation measures (other than electrical generation equipment for net
metering), renovations, expansions, or similar circumstances, under current Applicable
Laws, the Usage Limit will not be modified to reflect any resulting change in usage. If
Subscriber moves or transfers the Subscription to a transferee at another address, usage
history for the new address will be used to establish a new Usage Limit.
2.3 Eligibility Data. Owner will assist Subscriber in evaluating its compliance with the
Subscriber Eligibility Criteria and Usage Limit and will submit all eligibility data to Xcel.
Subscriber acknowledges that the account and other data contained in Exhibit B is accurate
and that Owner may use the data, as well as Subscriber’s electric bills or usage data for the
most recent 24 months at the Eligible Address, to determine Subscriber’s eligibility and
may submit the data to Xcel for purposes of Xcel’s confirmation of Subscriber’s eligibility
up to the full amount of its Subscription and Allocation. Subscriber agrees to provide
Owner and Xcel with any additional information requested by Owner or Xcel to determine,
verify, or approve Subscriber’s eligibility at any time during the Term, and to execute any
separate authorization in this respect which Xcel may require.
2.4 Eligibility Determination. Owner will inform Subscriber of Xcel’s determination of
Subscriber’s eligibility and Usage Limit. In the event that Xcel determines in an initial
decision (i) that Subscriber is not eligible, or (ii) Subscriber’s Usage Limit is lower than
the amount set forth in Exhibit B by an amount which limits Subscriber’s ability to use the
full Subscription acquired in this Agreement, Owner and Subscriber will either terminate
this Agreement in accordance with Section 9.2 or amend the Agreement to modify
Subscriber’s Subscription and Allocation to correspond to the revised Usage Limit or
eligibility requirement.
2.5 Subscription Data. Subject to the confidentiality and privacy provisions of Section 7.1, and,
if necessary, for Owner or its Financiers to confirm Subscriber’s creditworthiness,
Subscriber agrees to provide Owner with reasonable credit information.
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2.6 Agency Agreement. Owner will enter into a Standard Contract for Solar*Rewards
Community (“SRC Contract”) with Xcel with respect to the Project, which will govern the
terms for sale of the Energy Production to Xcel. Attached to the SRC Contract will be a
subscriber agency agreement and consent form (“Agency Agreement”) that Subscriber will
be required to sign setting forth details of data access and use and notice information for
questions and disputes about the Subscription, Project and related Bill Credits. The current
form of the Agency Agreement is attached as Exhibit F. The Agency Agreement, among
other things, provides information about Xcel’s access to and management of Subscriber
data and Xcel’s data privacy policies.
ARTICLE 3
SUBSCRIPTION PAYMENT
3.1 Subscription Payments.
(a) Each twelve (12) month period beginning with the Commercial Operation Date and
each anniversary of the Commercial Operation Date shall be a Subscription Year.
Beginning with the first Subscription Year, Subscriber shall pay to Owner monthly
payments of the Subscriber Rate times the monthly Energy Production allocated to
Subscriber pursuant to its Subscription (each a “Subscription Payment”).
(b) The Subscriber Rate for each Subscription Year after the first Subscription Year is
shown in Exhibit E.
(c) Owner shall invoice Subscriber monthly for the Energy Production attributable to
Subscriber during the prior month. Subscriber’s Subscription Payments will be due
within thirty (30) days of the date of the invoice.
3.2 Delinquent Payments. If Subscriber fails to pay any amount due Owner hereunder, in full,
by the scheduled due date, Subscriber will be charged interest on the outstanding balance
accruing at the rate of five (5) percent per annum until the balance is paid in full.
3.3 No Additional Funds. The Subscription Payments represent full payment by Subscriber
for the corresponding Subscription for the applicable month, and Owner shall not have any
right to compel Subscriber to advance or pay any additional funds for the Project or the
Subscription except as set forth in Sections 3.2 and 9.3.
3.4 Electronic Funds Transfer. At Owner’s request, and unless Subscriber does not have an
account or other suitable arrangement, the Subscription Payments due to Owner under this
Agreement shall be paid by ACH or other equivalent electronic funds transfer. Subject to
applicable confidentiality and data security provisions with respect to Subscriber’s account
information and other private data, Subscriber agrees to execute any documents necessary
to authorize Owner to withdraw Subscription Payments from Subscriber’s designated
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account on a monthly basis either on an automated basis thirty (30) days after the date of
the invoice, or at an earlier date selected by Subscriber.
3.5 Multiple Subscriptions. If Subscriber is also a subscriber in other CSGs owned by Owner
or its affiliates, Owner and its affiliates may create a combined monthly invoice reflecting
the energy production and subscription payments for all such projects, including the Energy
Production and Subscription Payment.
3.6 Disputed Payments. If Subscriber disputes any amount invoiced by Owner, Subscriber
shall pay the undisputed amount of the invoice when due, and notify Owner in writing of
the nature of the dispute. The parties shall utilize the dispute resolution process in Section
8.2 to resolve any dispute as quickly as practicable. If some or all of the amount in dispute
is subsequently deemed to have been due to Owner, Subscriber shall pay the amount due,
along with interest on the amount due at the rates set forth in Section 3.2 for the period
between the original due date and the date upon which the amount is paid.
3.7 Billing Adjustments Following Xcel Billing Adjustments. If, as a result of an Xcel billing
adjustment for reasons other than negligence or other actions of Owner, the quantity of
Energy Production is decreased (the “Electricity Deficiency Quantity”) and Xcel reduces
the amount of Bill Credits allocated to Subscriber for such period, Owner shall reimburse
Subscriber for the amount of any Subscription Payment paid by Subscriber in proportion
to the Electricity Deficiency Quantity. If, as a result of such adjustment, the quantity of
Energy Production allocated to Subscriber is increased (the “Electricity Surplus Quantity”)
and Xcel increases the amount of Bill Credits allocated to Subscriber for such period,
Subscriber shall pay for the Electricity Surplus Quantity at the Subscriber Rate applicable
during such period with the next applicable Subscription Payment.
3.8 Excess Bill Credits. If the value of accrued Bill Credits exceeds the amount Subscriber
owes Xcel for retail electric service in any month, the excess value shall be carried forward
and applied against Subscriber’s future Xcel retail electricity bills for up to twelve (12)
months. Xcel is required under the SRC Contract to pay Subscriber for the value of any
unapplied Bill Credits with the retail electric bill that includes the last day of February each
year during the Term.
ARTICLE 4
OWNER OBLIGATIONS
4.1 Design and Implementation. Owner agrees to develop, design, finance, and construct the
Project, including, but not limited to, site acquisition, procuring an agreement with Xcel that
allows the Project to interconnect with Xcel (“Interconnection Agreement”), selection and
procurement of Project components, and installation and testing of all Project components.
Installation and repairs shall be performed by, or under the supervision of, an NABCEP
certified professional.
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4.2 Application Process. Owner shall submit the Project to Xcel for approval as a CSG and
shall provide all information required by Xcel to determine the eligibility of the Project.
Owner shall negotiate and enter into the SRC Contract and any Interconnection Agreement
or other similar agreement with Xcel necessary to qualify the Project as a CSG and for the
Project to operate and deliver energy to Xcel.
4.3 Timeliness. Owner will use all commercially reasonable efforts to complete construction
and installation of the Project within two (2) years after Xcel deems the Project’s application
as a CSG to be complete and executes the corresponding Interconnection Agreement.
4.4 Eligibility Information. Owner shall submit to Xcel information needed for Xcel to confirm
eligibility of Subscriber and for Xcel to enter Subscriber into the Xcel CSG Subscriber
Management System (as defined in the SRC Contract) for proper application of the Bill
Credits to Subscriber’s retail Xcel account at the Eligible Address.
4.5 Insurance. Owner shall procure and maintain liability and other insurance necessary to
protect Owner and the Project against material risks which might adversely affect the
operation of the Project, during the Term of this Agreement.
(a) Owner shall have, at a minimum, the following insurance coverages and limits:
(i) Commercial General Liability on an occurrence basis with contractual
liability coverage:
General Aggregate: $2,000,000
Products—Completed Operations Aggregate $2,000,000
Personal and Advertising Injury $1,500,000
Each Occurrence—Combined Bodily Injury and Property Damage $1,500,000
(ii) Workers’ Compensation and Employer’s Liability:
Workers’ Compensation Statutory
If owner is based outside the State of Minnesota, coverage must comply with Minnesota
law.
(iii) Employer’s Liability. Bodily Injury by:
Accident—Each Accident: $500,000
Disease—Policy Limit $500,000
Disease—Each Employee $500,000
(b) An umbrella or excess policy over primary liability insurance coverages is an
acceptable method to provide the required insurance limits.
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(c) The above establishes minimum insurance requirements. It is the sole responsibility of
Owner to determine the need for and to procure additional insurance which may be
needed in connection with this Agreement. Upon written request, Owner shall
promptly submit copies of insurance policies to Subscriber.
(d) Owner shall not commence work until it has obtained required insurance and filed with
Subscriber a properly executed Certificate of Insurance establishing compliance. The
certificate(s) must name Subscriber as the certificate holder and as an additional
insurance for the liability coverage(s) for all operations covered under this Agreement.
Owner shall furnish to Subscriber updated certificates during the term of this
Agreement within thirty (30) days after the expiration of insurance policies.
4.6 Repair and Maintenance. Owner shall maintain, repair, and replace the Project components
in accordance with Applicable Laws and manufacturer and insurance requirements. All
upgrades, maintenance, and repairs will be performed in accordance with industry
standards, including the recommendations of the manufacturers of the modules and other
Project components. Owner shall maintain the Project in good working order at all times
during the term of this Agreement and shall operate the Project in a manner reasonably
intended to maximize the amount of Bill Credits allocable to Subscriber, consistent with
good custom and practice for operation of utility generating facilities.
4.7 Production Data. Owner shall provide Xcel with the Allocation and similar allocations for
all Project subscribers, and shall provide, or allow Xcel to directly procure from the Project
meter, production information from the Project, and provide Xcel with Subscriber’s
Account Information and Monthly Subscriber Information (as defined in the SRC Contract)
in order that Xcel may calculate and apply the Bill Credits monthly to Subscriber’s retail
account with Xcel.
4.8 Compliance. Owner shall operate the Project in compliance with all Applicable Laws,
orders of the MPUC applicable to the Project or CSGs, and applicable Xcel tariffs. Owner
shall obtain and maintain any and all permits, licenses, bonds, certificates, and other similar
approvals required in connection with this Agreement. In the event of an allegation that
Owner has failed to comply with any Applicable Laws or failed to obtain any and all
permits, licenses, bonds, certificates, and/or any other similar approvals required in
connection with this Agreement, Owner shall pay any fines or penalties imposed upon
Subscriber as a result of such failure and shall reimburse Subscriber for any expenses
(including attorneys’ fees) incurred by Subscriber in responding to such allegation.
4.9 Unscheduled Outage. After the Commercial Operation Date, Owner agrees to provide
notice to Subscriber of the occurrence of any unscheduled outage in excess of 100 kW
lasting longer than fifteen (15) days and any expected lost production. Notice will not be
required for scheduled maintenance outages or minor outages occurring in the ordinary
course of operation.
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ARTICLE 5
OWNER DISCLOSURES
5.1 Required Disclosures. Owner makes the following disclosures to Subscriber in compliance
with Applicable Laws:
(a) Production Estimate. The estimate of Energy Production for the Project is set forth in
Exhibit C (“Estimated Production”).
(b) Unsubscribed Energy Production. Unsubscribed Energy will be purchased by Xcel
from Owner in accordance with Applicable Laws and the SRC Contract, and all
payments for Unsubscribed Energy shall belong to Owner.
(c) Reserves. Owner has or will have adequate funds available to maintain the Project
and pay Project operating expenses such as taxes, maintenance, insurance, and
management services for the Term and may maintain reserves for such expenses.
(d) SRC Contract. The current form of SRC Contract is attached as Exhibit F.
(e) Other Agreements and Documents. Owner will provide Subscriber with the following
no later than sixty (60) days prior to the Commercial Operation Date or after each
becomes available:
(i) a copy of the executed SRC Contract between Xcel and Owner;
(ii) a copy of the solar module warranty;
(iii) certificate(s) of insurance for the Project; and
(iv) proof of a long-term Project maintenance plan.
Subscriber agrees to acknowledge receipt of the materials and any other disclosures
once provided.
(f) Subscription Benefits. Exhibit E sets forth Owner’s estimate of the possible benefits
to Subscriber from its Subscription over the Term of this Agreement and a description
of the assumptions underlying those estimates.
5.2 Securities Laws. Neither Owner nor Xcel makes any representations or warranties
concerning the implication of any federal or state securities laws with respect to this
Agreement or your Subscription. Neither this Agreement nor the Subscription has been
registered under the Securities Act of 1933, as amended, or any state securities laws.
Owner does not believe this Agreement or the Subscription constitute a security governed
by such laws but, in the event any such securities laws may apply, Subscriber represents
that, as of the Effective Date, it is an “accredited investor” as that term is defined in Rule
501 of the Securities and Exchange Commission under the Securities Act of 1933, as
amended. Owner’s conclusion is based in part on Subscriber’s agreement that it is not
entering into this Agreement or acquiring the Bill Credits for the purpose of making a
9
market in such interests or trading them on any securities or other market which might fall
within the scope of such laws and is acquiring them solely for personal use.
5.3 Taxes. Subscriber acknowledges that neither Owner nor Xcel makes any representation or
warranty concerning the tax treatment or consequences, if any, of the Subscription, the
Subscription Payments, the receipt by Subscriber of Bill Credits or Subscriber’s
participation in the Project. As between the parties, Owner is responsible for payment of
all taxes assessed or imposed against the Project, including any production tax pursuant to
Minn. Stat. Section 2795, as amended, and with respect to amounts received by Owner or
its affiliates from the sale of electricity to Xcel or from subscribers or other sources.
Subscriber shall be responsible for payment of any taxes assessed against Subscriber and
related to Subscriber’s receipt of Bill Credits.
5.4 Production. Subscriber will not be charged by Owner under this Agreement for any
electricity not produced by the Project. Owner makes no representation or warranty as to
the likelihood that the Project will generate any specific or minimum amount of electricity
or sufficient electricity so as to create any specific or minimum amount of Bill Credits to
Subscriber during any period of time or over the Term of the Agreement as a whole. The
production estimates in Exhibit C are based on a number of assumptions about expected
solar resources at the Project location, accuracy of production estimating software,
performance of the modules and other Project equipment, and other factors which are not
within the control of Owner. The actual production and delivery of Energy Production is
subject to lack of sunlight, other adverse weather, equipment failures, curtailments or
outages, and Force Majeure events. The production estimate and any other estimate
communicated by Owner to Subscriber of expected Energy Production during any period
of time is purely an estimate based on the information available to Owner at the time and
is not a guarantee that any such production will occur or that any minimum or particular
amount of Energy Production will be generated by the Project over any period of time.
5.5 Subscription Value. Notwithstanding the estimates in Exhibit E, Owner makes no
representation or warranty as to the likelihood that Subscriber’s Subscription will create
any specific or minimum amount of economic benefit to Subscriber over any period of
time or over the Term of this Agreement as a whole, or that the Subscription will create a
positive economic benefit to Subscriber. The estimate of potential benefits contained in
Exhibit E is based on a number of assumptions about future Bill Credit Rate, the energy
generated by the Allocation, Applicable Laws, and a number of other factors beyond
Owner’s control. Any estimate by Owner in Exhibit E or elsewhere given to Subscriber as
to any expected benefit to Subscriber from the Subscription over any period of time is
purely an estimate based on the information available to Owner and related assumptions at
the time and is not a guarantee that any positive economic benefit will accrue to Subscriber
from the Subscription or that any specific or minimum amount of benefits will accrue to
Subscriber over any period of time.
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ARTICLE 6
TRANSFERABILITY AND LOSS OF ELIGIBILITY
6.1 General. The validity of the Subscription is dependent upon, among other things,
Subscriber’s continuing compliance with the Subscriber Eligibility Criteria at the Eligible
Address and payment of the Subscription Payments. The Subscription is not transferrable
to third parties, other physical addresses, or other Xcel accounts, except pursuant to the
provisions set forth below. The Subscription is not transferable by Subscriber at any time
when Subscriber is in default under this Agreement, including for failure to pay a
Subscription Payment, unless the terms of the transfer provide for cure of the default,
including payment of any overdue Subscription Payment, as approved by Owner.
6.2 Relocation/Sale of Eligible Address.
(a) If, during the Term, Subscriber moves from the Eligible Address and is no longer the
Xcel account-holder at that address, Subscriber may elect to transfer the Subscription
to a new address if the following qualifications are met: (1) Subscriber’s new address
is within Chisago County or a contiguous county, and (2) Subscriber assumes or
establishes a new retail electric account with Xcel at the new address. Subscriber shall
provide sixty (60) days prior written notice to Owner of any proposed move. Transfer
of the Subscription is subject to approval by Xcel and a determination that the
Allocation of Energy Production will be less than the Usage Limit at the new address.
(b) If, during the Term, Subscriber moves from the Eligible Address and is no longer the
Xcel account-holder at that address, and Subscriber is not eligible to receive Bill
Credits under the Subscription at its new address for all or any portion of its Allocation
or Subscription, Subscriber must notify Owner and transfer the applicable Allocation
and Subscription to another eligible transferee in accordance with Section 6.3.
Subscriber shall be permitted up to no more than sixty (60) days to complete the
transfer of the applicable Allocation and Subscription to one or more eligible
transferees, after which, if some or all of the applicable Allocation and Subscription
is not so transferred, Subscriber shall execute any documents necessary for the
remaining Allocation and Subscription to be transferred to Owner, or, if the entire
Allocation and Subscription are not transferred, Owner may terminate this Agreement.
6.3 Transfer to Other Eligible Customers. The Subscription or any portion thereof may be
voluntarily transferred to any person or entity who, at the time of the transfer (1) meets the
Subscriber Eligibility Criteria for the Project, (2) is found to be reasonably creditworthy by
Owner, and (3) whose participation as a Subscriber in the Project in the amount represented
by the Allocation and Subscription to be transferred will not cause the Project to no longer
be eligible as a CSG or otherwise not comply with Applicable Laws or contractual
obligations to Xcel. In addition, the validity of any such transfer is expressly conditioned
upon:
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(a) sixty (60) days’ prior written notice to Owner identifying the proposed transferee,
providing the physical address at which they take electric service from Xcel, their Xcel
account number and all other information needed to determine their eligibility to be a
subscriber, as well as any other subscriptions in the Project or other CSGs held by the
proposed transferee, and any distributed generation facility owned by or serving the
proposed transferee at the service address associated with the proposed transfer;
(b) receipt by Owner and Xcel of authorizations from the proposed transferee needed to
access its Xcel account data, and receipt by Owner of usage data at the proposed
transferee’s address needed to calculate the applicable Usage Limit;
(c) determination by Owner and Xcel that the proposed transferee is eligible to be a
subscriber in the Project and that their participation as a subscriber will not cause the
Project to fail to be eligible as a CSG or otherwise not comply with any Applicable
Laws or contractual obligations to Xcel;
(d) the proposed transferee’s express written assumption of this Agreement or execution
and delivery of a new subscription agreement with Owner as to the Subscription on
terms acceptable to Owner, including the cure of any prior defaults of Subscriber
existing under this Agreement, and of a new Agency Agreement with Xcel; and
(e) Subscriber shall not charge any fee or make any profit on the transfer.
Once any proposed transfer meets these criteria, Owner shall arrange the delivery of data
to Xcel necessary to cause Xcel to reflect the change in subscribers and begin applying the
applicable Bill Credits to the transferee’s retail Xcel electric account.
6.4 Involuntary Transfers. Upon transfer of title or control of the Eligible Address or
Subscription, or portion thereof, due to bankruptcy, foreclosure, divorce, or operation of
law for other reasons, Subscriber or the transferee must notify Owner immediately. During
any period of time in which a trustee, receiver, or creditor is in possession of the Eligible
Address and assumes responsibility as the account-holder with Xcel at the Eligible
Address, such transferee shall be deemed to have succeeded to the rights of Subscriber
under this Agreement at the Eligible Address during the period of its possession subject to
its continuing performance of the obligations of Subscriber. Upon the transfer of title to
the property at the Eligible Address and the Subscription to a creditor or other third party
by operation of law, the transferee shall notify Owner of the transfer. If the transferee(s)
meets all Subscriber Eligibility Criteria, the transfer shall be treated as a transfer of the
Subscription to such transferee upon completion of the conditions set forth in Section
6.3(a)-(d). If one or more transferees does not meet the conditions of Section 6.3, then the
ineligible transferee(s) shall be required to immediately transfer the Subscription or
applicable portion to an eligible transferee in accordance with Section 6.3. Failure to
effectuate a transfer to an eligible transferee or Owner within thirty (30) days shall allow
Owner to terminate this Agreement.
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6.5 Transfer Timeline. Once all necessary information is received from Subscriber and any
proposed transferee, Owner will use all commercially reasonable efforts to implement the
transfer within sixty (60) days.
ARTICLE 7
PRIVACY; CONFIDENTIALITY
7.1 Subscriber Data. Owner will not disclose personal Subscriber data or information to any
person except (i) Xcel, to the extent required or allowed by Applicable Laws, the Agency
Agreement or the SRC Contract, for the purpose of administration of the Subscription; (ii)
attorneys, accountants, and agents of Owner to the extent necessary for them to render
advice or perform professional services associated with the Project or this Agreement; (iii)
as otherwise required by Applicable Laws. Account data of Subscriber in the possession
of Owner for purposes of Section 3.4 shall be kept strictly confidential and disclosed only
to those employees or contractors of Owner who need to use it to affect such payments.
7.2 Privacy Policies. Subscriber data shared with Xcel will be subject to Xcel’s data privacy
policy, a copy of which is included in Exhibit F and will be included in the SRC Contract.
7.3 Confidential Information of Owner. Certain information and data provided by Owner with
respect to the Project, the Subscription, or other aspects of Owner’s business may be
designated by Owner as confidential and proprietary information (“Owner Data”) pursuant
to the Minn. Stat. Ch. 13, the Minnesota Government Data Practices Act (“MGDPA”).
Subscriber agrees not to share any Owner Data with any other Person, including, but not
limited to, any other developer of CSG projects or anyone otherwise competing with
Owner, except for Subscriber’s accountants, attorneys, or other advisers for purposes of
assessing whether to enter into this Agreement and for tax filings and similar purposes, and
except as required by the MGDPA.
7.4 Use of Summary Data. Subscriber agrees that Owner may compile and make public certain
summary data about the Project which does not disclose private data on individuals,
confidential data on individuals, or other not public data about Subscriber or any other
individual Project subscriber. Summary data which may be disclosed includes:
(a) aggregate Energy Production by the Project, either in real-time or over any period of
time;
(b) total number of Project subscribers at any point in time;
(c) aggregate Bill Credits received by Project subscribers; and
(d) average or aggregate financial benefits or the amount or value of Bill Credits for
subscribers in the Project alone or together with other CSG pro jects managed by Owner
and its affiliates.
13
7.5 Data Practices Act.
(a) Consistent with Minn. Stat. § 13.05, subd. 6, if any data on individuals is made
available to Owner by the Subscriber under this Agreement, Owner will administer and
maintain any such data in accordance with MGDPA, and any other statutory provisions
applicable to the data. If and to the extent that Minn. Stat. § 13.05 subd. 11, is applicable
to this Agreement, then: (i) all of the data created, collected, received, stored, used,
maintained, or disseminated by Owner in performing this Agreement are subject to the
requirements of the MGDPA; (ii) Owner must comply with those requirements as if it
were a government entity; and (iii) the remedies in Minn. Stat. § 13.08 apply to Owner.
(b) Consistent with Minn. Stat. § 13.055, if “private data on individuals”, “confidential
data on individuals”, or other “not public data” are provided to or made accessible to
Owner by the Subscriber, Owner must: (i) have safeguards to ensure private or
confidential data on individuals or other not public data are only accessible or viewable
by Owner employees and agents whose work assignments in connection with the
performance of this Agreement reasonably require them to have access to the data; (ii)
immediately notify the Subscriber of any unauthorized access by Owner employees
and agents, and unauthorized access by third parties; (iii) fully cooperate with
Subscriber investigations into any breach in the security of private or confidential data
on individuals or other not public data that may have occurred in connection with
Owner’s access to or use of the data; and (iv) fully cooperate with the Subscriber in
fulfilling the notice and reporting requirements of Minn. Stat. § 13.055. The penalties
in Minn. Stat. § 13.09 governing unauthorized acquisition of not public data apply to
Owner and Owner employees and agents. If Owner is permitted to use a subcontractor
to perform Owner’s work under this Agreement, Owner shall incorporate these data
practice provisions into the subcontract.
(c) If Owner receives a request to release data referred to in this section, Owner must
immediately notify the Subscriber. The Subscriber will give Owner instructions
concerning the release of the data to the requesting party before the data is released.
ARTICLE 8
DISPUTE RESOLUTION
8.1 Xcel Disputes. Any dispute or question which Subscriber has with respect to the
application by Xcel of the Bill Credits associated with its Subscription to its retail electric
bill, including the applicable Bill Credit Rate, shall be directed by Subscriber to Xcel for
resolution. Subscriber may request that Owner assist Subscriber in this respect. If the
dispute or question is not resolved to the Subscriber’s satisfaction, Subscriber has the right
to complain directly to the MPUC at the following address:
Minnesota Public Utilities Commission
121 7th Place East, Suite 350
St. Paul, MN 55101
14
Tel: (651) 296-7124
Toll free: (800) 657-3782
Fax: (651) 297-7073
consumer.puc@state.mn.us
Any such dispute shall not allow Subscriber to withhold payment of its Subscription
Payments as invoiced. Any issue or dispute identified by Subscriber with respect to Xcel’s
CSG program or Xcel’s actions with respect to the Project or Subscription other than as
described in this Section shall be referred to Owner in the first instance.
8.2 Disputes Among Parties. Any dispute or issue arising from or related to this Agreement,
the Subscription, the Project, or Owner’s performance of its obligations with respect to
Subscriber, including, but not limited to, the determination of Energy Production or its
allocation to Subscriber, which are not resolved by communications between Subscriber
and Owner representatives over the phone or electronically shall be submitted to the other
Party in writing. Owner shall assign an officer or senior management to address or
negotiate a resolution with Subscriber. If a resolution is not reached within ten (10) days
or such longer period as the Parties may agree, either Party may pursue any remedies it
may have available at law.
ARTICLE 9
EVENTS OF DEFAULT; TERMINATION
9.1 Events of Default. Each of the following events shall be an Event of Default under this
Agreement:
(a) A Party breaches any material obligation, term, or provision of this Agreement and
fails to cure the breach within thirty (30) days of written notice of the breach from the
non-defaulting party;
(b) A representation or warranty by a party in this Agreement, or any eligibility
information provided by Subscriber, is or becomes materially untrue, and the
applicable Party fails to correct the representation or warranty within thirty (30) days
after written notice from the non-defaulting Party.
(c) With respect to Subscriber, Subscriber fails to make any Subscription Payment when
due, and fails to cure the default within thirty (30) days after written notice of default
from Owner or Subscriber fails to make two consecutive Subscription Payments when
due. For purposes of this provision, lack of funds in an account from which funds
were to be withdrawn pursuant to Section 3.4 shall be deemed non-payment by
Subscriber.
(d) With respect to Subscriber, Subscriber (or an involuntary transferee pursuant to Section
6.4) fails to meet the Subscriber Eligibility Requirements at any time during the Term
and fails to cure the deficiency immediately after notice from Owner or Xcel, and
15
Subscriber does not or cannot transfer its Subscription to an eligible transferee within
the period allowed by this Agreement;
(e) With respect to Owner, the Project becomes ineligible as a CSG during the Term, or
the SRC Contract or Interconnection Agreement is terminated due to actions or
omissions by Owner, and Owner does not provide substitute capacity from another
CSG to replace Subscriber’s Allocation within thirty (30) days.
(f) A Party subject to a petition for dissolution or reorganization, voluntary or
involuntary, under the U.S. Bankruptcy Code.
9.2 Termination. In the event a defaulting party fails to cure an Event of Default within the
applicable cure period, the non-defaulting party may terminate this Agreement by notifying
the defaulting party in writing. Upon termination of this Agreement by Owner for an
uncured Event of Default by Subscriber, Owner shall have no further obligations to
Subscriber under this Agreement except for payments or obligations arising or accruing
prior to the effective date of termination. In the event of a termination of this Agreement
by Subscriber due to an Event of Default by Owner, Subscriber shall have no further
obligation to Owner except for obligations arising or accruing prior to termination.
Effective upon any termination of this Agreement, Subscriber’s rights to receive Bill
Credits or any other rights or benefits associated with its Subscription shall end, and Owner
shall be entitled to re-subscribe Subscriber’s Allocation to any other person with no
obligation to Subscriber, and to notify Xcel to remove Subscriber from its Subscriber
Management System as a customer entitled to receive Bill Credits associated with the
Project. Subscriber shall be obligated to pay Subscription Payments for all periods prior
to the effective date of termination.
9.3 Termination Fee.
(a) In the event that this Agreement is terminated due to an Event of Default by
Subscriber, or Subscriber fails to effect a transfer of its Subscription to a new address
or transferee pursuant to Section 6.3, Subscriber shall pay Owner a fee within thirty
(30) days of termination in an amount necessary to make Owner whole for resulting
lost revenues (“Termination Fee”). The Termination Fee shall equal the positive
difference, if any, between (i) the net present value, using a discount rate of 8%, of the
Subscription Payments scheduled to be made by Subscriber between the effective date
of termination and the scheduled end of the 25-year Term, less (ii) the net present
value, using a discount rate of 8%, of the Subscription Payments expected to be made
by one or more new subscribers for the Allocation, or amounts to be received from
Xcel for Unsubscribed Energy associated with the Allocation, or if only a portion of
Allocation has been terminated, that portion of the Allocation terminated, for the
period between the effective date of termination and the scheduled end of the 25-year
Term. The Estimated Production from Exhibit C shall be used to calculate the
Termination Fee for the applicable period.
16
(b) To the extent the Allocation has not been re-subscribed by one or more eligible
replacement subscribers at the effective date of termination, the Termination Fee shall
be calculated for the full portion of the Allocation remaining to be re-subscribed. To
the extent the Subscription Rate received from one or more subscribers for the
Allocation is lower or higher than the Subscription Rate which Subscriber would have
paid, the calculation of the Termination Fee shall be adjusted to reflect the different
Subscription Rate.
(c) Owner will use commercially reasonable efforts to re-subscribe the Allocation upon a
termination of this Agreement. To the extent Owner is successful in re-subscribing
part or all of the Allocation during the period that is two years after the date of
termination, the Termination Fee shall be recalculated to reflect the replacement
subscription(s), and if the Termination Fee as recalculated is lower than the
Termination Fee paid by Subscriber, Owner will refund the difference to Subscriber
with interest. After the two-year reconciliation period, Owner shall be entitled to
retain the entire balance of the Termination Fee as liquidated damages. Subscriber
acknowledges that the Termination Fee is a reasonable approximation of damages to
be suffered by Owner as a result of termination of this Agreement and is not a penalty.
9.4 No Consequential Damages. No Party shall be liable to the other Party for any indirect,
special, punitive, exemplary, incidental, or consequential damages, whether arising in
contract, tort, under statute, or in equity, and each Party waives its rights to any such
damages. The Termination Fee is agreed to be compensation for direct damages suffered
by Owner and is not barred by this provision.
9.5 Force Majeure.
(a) The performance of each Party may be affected or prevented due to events or
circumstances beyond the control of the Party and that could not, by the exercise of
due diligence and foresight, reasonably have been avoided, including flood,
earthquake, tornado, hail, fire, lightning, war, riot or other act of God or other cause
beyond the control of the party affected (“Force Majeure”).
(b) A Party shall not be liable to the other Party to the extent it is prevented from
performing its obligations in whole or in part due to a Force Majeure, provided the
Party affected promptly takes all action reasonably necessary to overcome its inability
to perform and provides the other Party, within ten (10) days after the occurrence of
the Force Majeure act, notice describing the particulars of the occurrence and the
anticipated period of delay. The suspension of performance cannot be of any greater
scope or longer duration than which is required by the Force Majeure event.
(c) Force Majeure shall not suspend the obligations of any Party which arose or accrued
prior to the Force Majeure.
17
(d) Either Party may terminate this Agreement upon fifteen (15) days written notice to the
other Party if any event of Force Majeure affecting such other Party has been in
existence for a period of 90 consecutive days or longer, unless such event of Force
Majeure expired before the end of the 15-day notice period.
9.6 Early Termination. In addition to any other rights and remedies provided in this
Agreement, Owner shall have the right to terminate this Agreement without further liability
to Subscriber if the Project no longer qualifies as a CSG for any reason
9.7 No Warranties. NO WARRANTY, WHETHER STATUTORY, WRITTEN, ORAL
EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR
WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE,
ARE PROVIDED TO SUBSCRIBER WITH RESPECT TO THE PROJECT OR ITS
PERFORMANCE, THE SERVICES PROVIDED BY OWNER PURSUANT TO THIS
AGREEMENT, THE TERMS AND CONDITIONS OF THE CSG PROGRAM AS
CURRENTLY IMPLEMENTED BY XCEL AND AS IT MAY BE AMENDED AND
MODIFIED, OR ANY OTHER MATTER, AND ANY SUCH WARRANTIES ARE
EXPRESSLY DISCLAIMED.
The remedies set forth in this Agreement shall be the sole and exclusive remedies for any
claim or liability arising out of or in connection with this Agreement, whether arising in
contract, tort (including negligence), strict liability or otherwise.
9.8 Indemnification. Subscriber and Owner agree to defend, indemnify, and hold each other,
and their respective officers, directors, employees and agents, harmless from and against
all damages for personal injury or death to persons and damage to each other’s physical
property or facilities or the property of any other person, including, with respect to Owner,
the Project, to the extent arising out of, resulting from, or caused by the negligent or
intentional acts, errors, or omissions of the indemnifying party. Nothing in this Section 9.8
shall relieve Subscriber and Owner of any liability to the other for any breach of this
Agreement. This indemnification obligation shall apply notwithstanding any negligent or
intentional acts, errors or omissions of the indemnitees but the indemnifying Party’s
liability to pay damages to the indemnified Party shall be reduced in proportion to the
percentage by which the indemnitees’ negligent or intentional acts, errors or omissions
caused the damages. Neither Party shall be indemnified for damages resulting from its sole
negligence or willful misconduct. These indemnity provisions shall not be construed to
relieve any insurer of its obligation to pay any claim consistent with the provisions of a
valid insurance policy.
18
ARTICLE 10
FINANCING
10.1 Assignment by Owner. Owner may (i) assign its rights and interests in this Agreement to
an affiliate or to a successor by acquisition, merger or reorganization, (ii) mortgage, pledge,
or collaterally assign this Agreement and the Project to any Financier; and (iii) assign this
Agreement and the Project to any entity through which Owner is obtaining financing or
capital for the Project; in each case without the consent of Subscriber or prior notice to
Subscriber. In the event of any assignment or transfer of all of Owner’s rights and
obligations under this Agreement other than a collateral assignment, Owner shall be
released from all its liabilities and other obligations under this Agreement, provided the
assignee assumes all of Owner’s liabilities and obligations to Subscriber. In the event a
Financier acquires Owner’s rights and obligations under this Agreement and the Project,
by foreclosure or otherwise, the Financier may assign, sell or transfer its interests in this
Agreement and the Project to any other person without Subscriber’s consent.
10.2 Opportunity to Cure. Once this Agreement has been assigned or otherwise mortgaged or
pledged to a Financier, if an Event of Default occurs by Owner, Subscriber may not
terminate this Agreement unless Subscriber provides prior written notice of the alleged
Event of Default to the Financier (if Owner has provided Subscriber with contact
information from the Financier), and the Financier shall have no less than thirty (30) days
after receipt of the notice to cure any default, or if the default cannot reasonably be cured
within thirty (30) days, and the Financier commences and diligently pursues a cure for the
default within the thirty (30) day period, then the Financier shall have up to an additional
ninety (90) days to cure the default.
10.3 Financier Changes. Owner will be obtaining construction and long-term financing from
one or more Financiers. Subscriber agrees to consider and to negotiate in good faith any
changes or additions to this Agreement reasonably requested by a Financier, provided that
Subscriber is not obligated to agree to any proposed change or addition that changes any
material economic term. Subscriber will also execute estoppels, consents or other
documents reasonably requested by a Financier provided the information and
representations of Subscriber in any such document are factually accurate and do not
impose any liability on Subscriber.
ARTICLE 11
REPRESENTATIONS
11.1 General Representations. Each Party represents and warrants to the other Party as of the
date of this Agreement that:
(a) it is duly organized and validly existing and in good standing in the jurisdiction of
its organization;
19
(b) it has the full right and authority to enter into, execute, deliver and perform its
obligations under the Agreement;
(c) it has taken all requisite corporate or other action to approve the execution, delivery
and performance of the Agreement;
(d) the Agreement constitutes its legal, valid and binding obligation enforceable
against such Party in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other similar
laws now or hereafter in effect relating to creditors’ rights generally;
(e) there is no litigation, action, proceeding or investigation pending or, to the best of
its knowledge, threatened before any court or other governmental authority by,
against, affecting or involving any of its business or assets that could reasonably be
expected to adversely affect its ability to carry out the transactions contemplated
herein; and
(f) it is not currently the debtor in any bankruptcy, insolvency, liquidation or similar
proceeding, has no present intent to seek protection under any bankruptcy,
insolvency, liquidation or similar laws providing relief for creditors, and to the best
of its knowledge, no other person intends to pursue any action to involuntarily
subject the party to any bankruptcy, insolvency, liquidation or similar proceeding.
11.2 Subscriber Representations. Subscriber further represents to Owner as of the date of this
Agreement:
(a) The information in Exhibit B is true and correct;
(b) The Eligible Address is not served by any on-site or other distributed electric
generation facilities, and no such facilities are currently planned to be installed at,
or which would serve, Subscriber at the Eligible Address;
(c) Subscriber is not exempt from the Solar Energy Standard under Minn. Stat. Section
216B.1691, subd. 2(f)(d);
(d) Subscriber’s present intent is that the Subscriber Energy allocated to Subscriber
from its Allocation and Subscription, when combined with the estimated amount of
energy to be allocated from other community solar gardens in which Subscriber has
purchased or is purchasing a subscription and from any distributed energy system
at the Eligible Address will not exceed one Subscriber’s Usage Limit.
20
ARTICLE 12
MISCELLANEOUS
12.1 NOTICE. ALL NOTICES OR OTHER COMMUNICATIONS REQUIRED OR PERMITTED
TO BE GIVEN UNDER THIS AGREEMENT WILL BE IN WRITING AND DELIVERED BY
HAND, SENT BY FACSIMILE OR ELECTRONIC MAIL, OR SENT, POSTAGE PREPAID,
BUT U.S. MAIL OR REPUTABLE COURIER SERVICE TO THE RESPECTIVE PARTIES
AS FOLLOWS:
To Subscriber: City of Stillwater
Attn: City Administrator
216 N. Fourth St.
Stillwater, MN 55082
To Owner: Sunrise CSG 1, LLC
850 Canal St. Ste 3D
Stamford, CT 06902
347-557-9055
John.Ewen@renesolapower.com
Complaints or inquiries about this Agreement may be directed to Owner at the address and
phone number listed above. Notice shall be deemed delivered upon receipt or refusal, if
personally delivered, upon the date of actually delivery or refusal shown on the courier’s
delivery receipt if sent by overnight courier, and on the fourth business day after deposit in
the U.S. mail if sent by certified mail. Any party may change the address for notice by
notice to the other party. Notice by electronic mail shall be made to an address provided
by Subscriber and Owner shall be entitled to conclusively presume that the address
provided by Subscriber is, and remains, accurate, until notified otherwise by Subscriber.
Notice by electronic mail to the address provided by Subscriber shall be considered
received upon the day of transmission, if sent before or during normal business hours, or
the next day if sent after normal business hours, unless a message stating that the email
was undeliverable at the address is received by Owner.
12.2 Assignment. Except as otherwise expressly provided, neither party may assign this
Agreement without the prior written consent of the other party. Any purported assignment
without the required consent shall be void.
12.3 No Third Party Beneficiaries. Nothing in this Agreement shall be construed to create any
duty to, or standard of care with reference to, or liability to, any person not a party to this
Agreement. No provision of this Agreement is intended to nor shall it in any way inure to
the benefit of any third party so as to constitute any such person a third party beneficiary
under this Agreement, or of any one or more of the terms of this Agreement, or otherwise
give rise to any cause of action in any person not a party to this Agreement.
21
12.4 Entire Agreement. It is mutually understood and agreed that this Agreement constitutes
the entire agreement between Subscriber and Owner and supersedes any and all prior oral
or written understandings, representations or statements, and that no understandings,
representations or statements, verbal or written, have been made which modify, amend,
qualify or affect the terms of this Agreement. This Agreement may not be amended except
in a writing executed by both parties. Where this Agreement refers to provisions of the
SRC Contract, Interconnection Agreement or Applicable Laws, the provisions of such
agreements or laws shall govern to the extent they conflict with any description or summary
of their contents set forth in this Agreement.
12.5 Governing Law. This Agreement is made in Minnesota and shall be governed by the laws
of the State of Minnesota.
12.6 Waiver. Neither party shall be deemed to have waived any provision of this Agreement or
any remedy available to it unless such waiver is in writing and signed by the party against
whom the waiver would operate. Any waiver at any time by either party of its rights with
respect to any rights arising in connection with this Agreement shall not be deemed a
waiver with respect to any subsequent or other matter.
12.7 Relationship of Parties. The duties, obligations and liabilities of each of the parties are
intended to be several and not joint or collective. This Agreement shall not be interpreted
or construed to create an association, joint venture, fiduciary relationship or partnership
between the parties or to impose any partnership obligation or liability or any trust or
agency obligation or relationship upon either party. Owner and Subscriber shall not have
any right, power, or authority to enter into any agreement or undertaking for, or act on
behalf of, or to act or be an agent or representative of, or to otherwise bind, the other party.
12.8 Severability. Should any provision of this Agreement be or become void, illegal or
unenforceable, the validity or enforceability of the other provisions of the Agreement shall
not be affected and shall continue in full force. The parties will, however, use their best
efforts to agree on the replacement of the void, illegal or unenforceable provisions with
legally acceptable clauses which correspond as closely as possible to the sense and purpose
of the affected provision and the Agreement as a whole.
12.9 Counterparts; Electronic Signatures. This Agreement may be executed in two or more
counterparts and by different parties on separate counterparts, all of which shall be
considered one and the same agreement and each of which shall be deemed an original. To
the extent permitted by Applicable Laws, this Agreement may be executed electronically
and delivered by electronic transmission, and such electronic signatures shall be deemed
original signatures for all purposes.
12.10 Records and Audits.
(a) Upon request by Subscriber, Owner shall provide (i) evidence of the accuracy of its
metering equipment for the Facility and/or (ii) such other information and records
22
requested by Subscriber to enable Subscriber to verify the accuracy of the Bill Credits
awarded by Xcel and any other calculations and/or measurements described in this
Agreement.
(b) Owner shall provide monthly reports to Subscriber containing the energy produced by
the Facility.
(c) Owner shall provide annual reports to Subscriber containing an audited financial
statement of Owner, and a current statement of management, financing parties, and
operatorship of Owner.
(d) Subscriber may provide comments to Owner on the accuracy and completeness of the
annual reports, and shall provide a copy of any such comments to Xcel.
(e) As required by Minnesota Statutes Section 16C.05, subdivision 5, the records, books,
documents, and accounting procedures and practices of Owner and of any subcontractor of
Owner relating to work performed pursuant to this Agreement shall be subject to audit and
examination by the Subscriber and the Legislative Auditor to State Auditor as described in
such subdivision.
(f) Owner and any subcontractor of Owner shall permit, upon reasonable advance written
notice, the Subscriber or its designee to inspect, copy, and audit its accounts, records, and
business documents at any reasonable time during regular business hours, as they may
relate to the performance under this Agreement.
(g) Audits conducted by the Subscriber under this provision shall be in accordance with
generally accepted auditing standards.
(SIGNATURE PAGES TO FOLLOW)
23
Sunrise CSG 1, LLC, a Minnesota
limited liability company
By___________________________________
Printed Name:
Its___________________________________
24
CITY OF STILLWATER
By:
_______________________________________
Mayor Ted Kozlowski
_______________________________________
City Clerk Beth Wolf
25
EXHIBIT A
ADDITIONAL DEFINITIONS
1. Applicable Laws. Any law, statute, rule, regulation, ordinance, order (including orders
issued by the MPUC), tariff, judgment, or other legally binding restriction or ruling issued
by a governmental authority which is applicable to the Project, Owner, Subscriber, CSGs
or this Agreement.
2. Bill Credits. The monetary value of a credit to be applied by Xcel to a CSG subscriber’s
retail electric bill in accordance with Applicable Laws, orders, tariffs and the SRC
Contract.
3. Commercial Operation Date. The “Date of Commercial Operation” defined in the SRC
Contract and which is generally the date on which the Project begins selling electricity to
Xcel for other than testing purposes.
4. Bill Credit Rate. An amount per kilowatt-hour established by the MPUC with respect to
specific classes of Xcel customers to be used for determining the value of a CSG
subscriber’s Bill Credits.
5. Energy Production. The electrical energy actually generated by the Project and delivered
to the point at which the Project physically interconnects with Xcel’s electrical system and
is sold to Xcel, as measured by metering equipment installed by Xcel. Energy Production
excludes electrical energy generated by the Project and used by the Project or lost in the
transformation, transmission or conversion of electrical energy generated by the Project
before physical delivery and sale to Xcel.
6. Financier. Any person providing money or extending credit (including any capital lease)
to Owner for construction, term, or permanent financing of the Project or working capital
for Owner or the Project, exclusive of common trade creditors.
7. Subscriber Energy. The amount of Energy Production allocated to Subscriber during any
period of time which equals the product of the applicable Energy Production and the
Allocation
9. Subscriber Rate. The Subscriber Rate is the Rate per kWh that the Subscriber pays to the
Owner on a monthly basis for each kWh generated in that month by the Allocation
10. Subscriber Eligibility Criteria. The criteria established by Applicable Laws, including, but
not limited to, MPUC orders and Xcel tariffs applicable to CSGs, which Xcel customers
must satisfy to participate as subscribers in a CSG.
11. Unsubscribed Energy. Energy Production from the Project which is not allocated to a
subscriber in the Project.
26
EXHIBIT B
SUBSCRIBER DATA
1. Subscriber (name as shown on Xcel account) _______________________
2. Xcel service address (Eligible Address): _______________________
_______________________
_______________________
3. Xcel account number(s): _______________________
4. Subscriber Rate Class: _______________________
5. Net metering or other generation at Eligible Address: ____________________
6. Other Xcel accounts: _____________________
7. Other CSG subscriptions: ____________________
27
EXHIBIT C
ESTIMATE OF ENERGY PRODUCTION
Year
Estimated
CSG
Production
(kWh)
1 2,231,000
2 2,219,845
3 2,208,746
4 2,197,702
5 2,186,714
6 2,175,780
7 2,164,901
8 2,154,077
9 2,143,306
10 2,132,590
11 2,121,927
12 2,111,317
13 2,100,760
14 2,090,257
15 2,079,805
16 2,069,406
17 2,059,059
18 2,048,764
19 2,038,520
20 2,028,328
21 2,018,186
22 2,008,095
23 1,998,055
24 1,988,064
25 1,978,124
Total 52,553,328
Estimated Production was determined by using PVSYST software developed by the National
Renewable Energy Laboratory using publicly available historical data for solar resource at the site
of the Project, the manufacturer’s specifications for production capability of the solar modules,
and reductions for estimated losses for Project usage and conversion, transmission and
transformation of the electricity generated by the Project.
28
Exhibit D
2019 VINTAGE YEAR BILL CREDIT RATE
Year
Number
2019 VOS Vintage
Year Bill Credit Rate
($/kWh)
Year
Number
2019 VOS Vintage
Year Bill Credit Rate
($/kWh)
Year 1 $0.0904 Year 14 $0.1208
Year 2 $0.0925 Year 15 $0.1235
Year 3 $0.0945 Year 16 $0.1263
Year 4 $0.0967 Year 17 $0.1291
Year 5 $0.0988 Year 18 $0.1320
Year 6 $0.1011 Year 19 $0.1350
Year 7 $0.1033 Year 20 $0.1380
Year 8 $0.1057 Year 21 $0.1411
Year 9 $0.1080 Year 22 $0.1443
Year 10 $0.1105 Year 23 $0.1475
Year 11 $0.1130 Year 24 $0.1509
Year 12 $0.1155 Year 25 $0.1542
Year 13 $0.1181
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EXHIBIT E
ESTIMATED SUBSCRIPTION BENEFITS
Year Estimated
CSG
Production
(kWh)
Subscription
Allocation
(kWh)
Allocation
(%)
VOS Bill
Credit Rate
($/kWh)
Subscriber
Rate
($/kWh)
Subscriber
Benefit ($)
0 0 0 0 0 0 0
1 2,231,000 892,400 40.00% $0.0904 $0.0854 $4,462
2 2,219,845 887,938 40.00% $0.0925 $0.0875 $4,440
3 2,208,746 883,498 40.00% $0.0945 $0.0895 $4,417
4 2,197,702 879,081 40.00% $0.0967 $0.0917 $4,395
5 2,186,714 874,685 40.00% $0.0988 $0.0938 $4,373
6 2,175,780 870,312 40.00% $0.1011 $0.0961 $4,352
7 2,164,901 865,960 40.00% $0.1033 $0.0983 $4,330
8 2,154,077 861,631 40.00% $0.1057 $0.1007 $4,308
9 2,143,306 857,322 40.00% $0.1080 $0.1030 $4,287
10 2,132,590 853,036 40.00% $0.1105 $0.1055 $4,265
11 2,121,927 848,771 40.00% $0.1130 $0.1080 $4,244
12 2,111,317 844,527 40.00% $0.1155 $0.1105 $4,223
13 2,100,760 840,304 40.00% $0.1181 $0.1131 $4,202
14 2,090,257 836,103 40.00% $0.1208 $0.1158 $4,181
15 2,079,805 831,922 40.00% $0.1235 $0.1185 $4,160
16 2,069,406 827,763 40.00% $0.1263 $0.1213 $4,139
17 2,059,059 823,624 40.00% $0.1291 $0.1241 $4,118
18 2,048,764 819,506 40.00% $0.1320 $0.1270 $4,098
19 2,038,520 815,408 40.00% $0.1350 $0.1300 $4,077
20 2,028,328 811,331 40.00% $0.1380 $0.1330 $4,057
21 2,018,186 807,274 40.00% $0.1411 $0.1361 $4,036
22 2,008,095 803,238 40.00% $0.1443 $0.1393 $4,016
23 1,998,055 799,222 40.00% $0.1475 $0.1425 $3,996
24 1,988,064 795,226 40.00% $0.1509 $0.1459 $3,976
25 1,978,124 791,250 40.00% $0.1542 $0.1492 $3,956
30
EXHIBIT F
Form of Agency Agreement
SOLAR*REWARDS COMMUNITY
SUBSCRIBER AGENCY AGREEMENT AND CONSENT FORM
The undersigned ("Subscriber") has a Subscription to the following Community Solar Garden:
Community Solar Garden Name: Sunrise CSG 1, LLC
Community Solar Garden Address:
Community Solar Garden Operator:
Community Solar Garden contact
information for Subscriber questions
and complaints:
Address (if different from above):
Telephone number:
Email address:
Web Site URL: n/a
Subscriber Name: __________________________________________
Subscriber’s Account Number with
Northern States Power Company: __________________________________________
Subscriber Service Address where
receiving electrical service from
Northern States Power Company: __________________________________________
31
By signing this Solar Rewards Community Subscriber Agency Agreement and Consent Form, the
Subscriber agrees to all of the following:
1. Assignment of Renewable Energy Credits ("RECs"), Energy and Capacity to
Northern States Power Company, a Minnesota corporation. The Subscriber agrees that the
Community Solar Garden Operator has authority to assign all energy produced and capacity
associated with the photovoltaic energy system at the Community Solar Garden to Northern States
Power Company, and the Subscriber agrees that all energy produced, and capacity associated with
the photovoltaic energy system at the Community Solar Garden shall belong to Northern States
Power Company. The Subscriber also agrees that the Community Solar Garden Operator has
authority to assign all RECs associated with the photovoltaic energy system at the Community
Solar Garden to Northern States Power Company, and that if the Community Solar Garden or a
person or entity on its behalf has assigned the RECs to Northern States Power Company, then all
RECs associated with the photovoltaic energy system at the Community Solar Garden shall belong
to Northern States Power Company.
2. Tax Implications. The Community Solar Garden Operator has provided the
Subscriber with a statement that Northern States Power Company makes no representations
concerning the taxable consequences to the Subscriber with respect to its Bill Credits to the
Subscriber or other tax issues relating to participation in the Community Solar Garden.
3. Northern States Power Company hereby discloses to the Subscriber that it
recognizes that not all production risk factors, such as grid-failure events or atypically cloudy
weather, are within the Community Solar Garden Operator's control.
4. Information Sharing. Participating in the Solar*Rewards Community Program will
require sharing Subscriber's Account Information (name, account number, service address,
telephone number, email address, web site URL, information on Subscriber participation in other
distributed generation serving the premises of the Subscriber, Subscriber specific Bill Credit(s))
and Subscriber's Energy Use Data (the past, present and future electricity usage attributable to the
Subscriber for the service address and account number identified for participation in the
Community Solar Garden). The following outlines the type of information that will be shared, and
how that information will be used.
a. Subscriber's Account Information and Subscriber Energy Usage Data. The
Subscriber authorizes Northern States Power Company to provide the Community Solar
Garden Operator (and the Community Solar Garden Operator's designated subcontractors
and agents) with the Subscriber's Account Information and Subscriber's Energy Usage Data
as described in Section 4 above. This information is needed to allow the Community Solar
Garden Operator determine the extent to which the Subscriber is entitled to participate in
the Community Solar Garden, and to validate the amount of the Bill Credits to be provided
by Northern States Power Company to the Subscriber. The current data privacy policies
of Northern States Power Company applicable to its Solar*Rewards Community Program
provided to the Subscriber by the Community Solar Garden Operator pursuant Section 3
above are attached as Exhibit 1 of this Solar*Rewards Community Subscriber Agency
32
Agreement and Consent Form. These privacy policies include definitions of "Subscriber's
Account Information" and "Subscriber's Energy Usage Data."
b. Subscriber's Subscription Information: The Subscriber authorizes the
Community Solar Garden Operator to provide information to Northern States Power
Company identifying the Subscriber (with the Subscriber's name, service address, and
account number) and detailing the Subscriber's proportional share in kilowatts of the
Community Solar Garden and to provide additional updates of this information to Northern
States Power Company as circumstances change. This information is needed to allow
Northern States Power Company to properly apply Bill Credits for the photovoltaic energy
generated by the Community Solar Garden. Also, this information is needed to allow
Northern States Power Company to send to the Subscriber notices or other mailings
pertaining to their involvement in the Solar*Rewards Community Program. The
Community Solar Garden Operator shall not disclose Subscriber information in annual
reports or other public documents absent explicit, informed consent from the Subscriber.
The Community Solar Garden Operator will not release any Subscriber data to third parties
except to fulfill the regulated purposes of the Solar*Rewards Community Program, to
comply with a legal or regulatory requirement, or upon explicit, informed consent from the
Subscriber.
c. Aggregate Information. Aggregate information concerning production at
the Community Solar Garden may be publicly disclosed to support regulatory oversight of
the Solar*Rewards Community Program. This includes annual reports available to the
public related to specific Community Solar Gardens, including but not limited to
production from the Community Solar Gardens; size, location and the type of Community
Solar Garden subscriber groups; reporting on known complaints and the resolution of these
complaints; lessons learned and any potential changes to the Solar*Rewards Community
Program; reporting on Bill Credits earned and paid; and reporting on the application
process. Aggregated information will not identify individual Subscribers or provide
Subscriber-Specific Account Information, Subscriber-Specific Energy Usage Data or
Subscriber-specific Bill Credits unless a Subscriber provides explicit informed consent.
Depending on the nature of the aggregated information, however, it may still be possible
to infer the amount of production attributed to individual Subscribers to the Community
Solar Garden. The Subscriber agrees to the inclusion of its production information in the
creation of the aggregated information. The Community Solar Garden Operator will not
use aggregated information for purposes unrelated to the Solar*Rewards Community
Program without first providing notice and obtaining further consent, unless the aggregated
information is otherwise available as public information. The policies of Northern States
Power Company related to sharing aggregated information are part of the data privacy
policies contained in the attached Exhibit 1 of this Solar*Rewards Community Subscriber
Agency Agreement and Consent Form and should be provided to the Subscriber by the
Community Solar Garden Operator pursuant Section 3 above.
d. Information Requests from the MPUC or the Department of Commerce.
The Subscriber agrees that the Community Solar Garden Operator and Northern States
33
Power Company are authorized to provide any information they possess related to the
Subscriber or the Subscriber's participation in the Community Solar Garden to the
Minnesota Public Utilities Commission (MPUC), the Minnesota Department of Commerce,
or the Minnesota Office of Attorney General. This information is needed to allow proper
regulatory oversight of Northern States Power Company and of the Solar*Rewards
Community Program.
e. Liability Release. Northern States Power Company shall not be responsible
for monitoring or taking any steps to ensure that the Community Solar Garden Operator
maintains the confidentiality of the Subscriber's Account Information, the Subscriber's
Energy Usage or the Bill Credits received pertaining to the Subscriber's participation in the
Community Solar Garden. However, Northern States Power Company shall remain liable
for its own inappropriate release of Subscriber's Account Information and Subscriber's
Energy Use Data.
f. Duration of Consent. The Subscriber's consent to this information sharing
shall be ongoing for the Term of the Contract between the Community Solar Garden
Operator and Northern States Power Company, or until the Subscriber no longer has a
Subscription to the Community Solar Garden and the Community Solar Garden Operator
notifies Northern States Power Company of this fact through the CSG Application System.
Provided, however, the Subscriber's consent shall also apply thereafter to all such
information of the Subscriber pertaining to that period of time during which the Subscriber
had a Subscription to the Community Solar Garden.
g. Modification. The above provisions addressing data privacy and in Exhibit
1 shall remain in place until and unless other requirements are adopted by the MPUC in its
generic privacy proceeding, Docket No. E,G999/CI-12-1344, or other MPUC Order.
Northern States Power Company shall file necessary revisions to its tariffs and contracts
within thirty (30) days of such Order.
Subscriber's Name:
Subscriber's Signature: By:
Name:
Its:
Date: ______________, 2018
34
EXHIBIT 1 TO
SOLAR*REWARDS COMMUNITY SUBSCRIBER AGENCY AGREEMENT
AND CONSENT FORM
DATA PRIVACY POLICIES OF NORTHERN STATES POWER COMPANY
PERTAINING TO THE SOLAR*REWARDS COMMUNITY PROGRAM
The data privacy policies of Northern States Power Company pertaining to the
Solar*Rewards Community Program are as follows and may be changed from time to time
as filed in the Company's tariff or as otherwise may be authorized by the Minnesota Public
Utilities Commission ("MPUC"):
Definitions
Unless indicated otherwise, the same definition and meaning of terms in this document are
the same as contained in the Standard Contract for Solar*Rewards Community. For ease
of reference, here are some of the specific definitions:
"Company" means Northern States Power Company, a Minnesota corporation, and its
affiliates and agents.
"Subscribed Energy" means electricity generated by the PV System attributable to the
Subscribers' Subscriptions and delivered to the Company at the Production Meter on or
after the Date of Commercial Operation.
"Subscriber" means a retail customer of the Company who owns one or more Subscriptions
of a community solar garden interconnected with the Company.
"Subscriber's Account Information" consists of the Subscriber's name, account number,
service address, telephone number, email address, web site URL, information on
Subscriber participation in other distributed generation serving the premises of the
Subscriber, and Subscriber specific Bill Credit(s).
"Subscriber's Energy Usage Data" includes the past, present and future electricity usage
attributable to the Subscriber for the service address and account number identified for
participation in the Community Solar Garden.
35
Overview
This section addresses how Subscriber's Account Information and Subscriber's Energy
Usage Data will be collected, used and shared as part of participation in the Solar*Rewards
Community Program.
1. How Subscriber's Account Information and Energy Usage Data Will Be
Exchanged
a. Subscriber Specific Information
Once a Subscriber has executed a Subscriber Agency Agreement and Consent Form, an
ongoing data exchange will occur between the Company and a Community Solar Garden
Operator (and their designated subcontractors and agents):
(i) The Company will disclose the following Subscriber-specific information
to the Community Solar Garden Operator:
Subscriber's Account Information
Subscriber's Energy Usage Data
Bill credits
(ii) The Community Solar Garden Operator will disclose to the Company the
following Subscriber-specific information:
Subscriber's Account Information
Community Solar Garden Allocation for each Subscriber's Subscription
stated in kW
Production data related to the PV System
Monthly Subscription Information
b. Aggregated Subscriber Information
Aggregated Subscriber information will be reported as part of Permitted Public Reporting,
outlined in Section 2(b) below.
To be considered "aggregated" the reported information must include information
attributable to all Subscribers participating in a specific Solar*Rewards Community
36
program site, which based on program requirements will contain a minimum of five
Subscribers. Depending on the nature of the aggregated information, however, from this
information alone or in combination with other publicly available information it may still
be possible to infer the amount of production attributed to individual Subscribers to the
Community Solar Garden.
2. How Subscriber's Information Will Be Used
The following outlines how the Subscriber's Account Information and Subscriber Energy
Usage Data will be used as part of the Solar*Rewards Community Program.
a. Program Management
As part of administering the Solar*Rewards Community program, the Solar Garden
Operator and the Company may provide information related to the Subscriber and/or the
Community Solar Garden to:
the MPUC
the Minnesota Department of Commerce
the Minnesota Office of Attorney General
Other governmental or private entities as required by law or regulation
Account Information and Subscriber's Energy Usage Data to service providers, agents, or
contracted agents who support the program on its behalf. The Company prohibits these
service providers from using or disclosing the Subscriber's information except as necessary
to perform these specific services or to comply with legal requirements. More information
about the Company's general privacy practices is explained in its Privacy Policy available
on www.xcelenergy.com.
b. Permitted Public Reporting
The Subscriber's Energy Usage Data of each participating Subscriber to a Community
Solar Garden will be combined and reported in the aggregate by the Community Solar
Garden Operator in its annual report on the Solar*Rewards Community program. The
identity of specific Subscribers, the specific Subscriber's Account Information,
Subscriber's Energy Usage Data and Subscriber-specific Bill Credit will not be listed in the
public annual report unless the Subscriber has provided the Community Solar Garden
Operator with prior written consent.
37
Per the requirements of the MPUC, the Company will provide to the MPUC annual reports
which will include information or data requested by the MPUC or Minnesota Department
of Commerce, including the following:
Reporting on Solar*Rewards Community program costs, including an
analysis of the deposit, application, participation and metering fees and
further justification for these fees going forward;
Reporting on the Solar*Rewards Community Gardens, including but not
limited to size, location and the type of Solar*Rewards Community
subscriber groups;
Reporting on known complaints and the resolution of these complaints;
A copy of each contract signed with a Community Solar Garden Operator,
if not previously filed;
Lessons learned and any potential changes to the program;
Report on bill credits earned and paid; and the
Application process
c. Prohibited Reporting or Sharing
Except as otherwise provided in this document, the Company will not disclose the
Subscriber's Account Information, Subscriber's Energy Usage Data or Subscriber-specific
Bill Credits to a third party without first obtaining the Subscriber's written consent.
Any requests by the Community Solar Garden Operator to the Company for information
about a Subscriber that is not Subscriber's Account Information or Subscriber's Energy
Usage Data will require execution of a separate written consent by the Subscriber.
Notwithstanding the previous statement, the Company will not provide the Community
Solar Garden Operator with the Subscriber's Social Security Number unless directed to do
so by the MPUC or Minnesota Department of Commerce or compelled by law or
regulation.
3. Subscriber Data Access and Correction
The following outlines what information is available to the Subscriber from the Company
and the Community Solar Garden Operator, and methods of correcting any inaccuracies.
a. Information Available from the Company
38
Subscribers can contact the Company's call center to obtain information pertaining to their
specific Bill Credit attributable to their participation in Solar*Rewards Community
Program. The correction of any allocation of previously-applied Bill Credits among
Subscribers or payments to the Community Solar Garden Operator for Unsubscribed
Energy, pertaining to a particular month due to any inaccuracy reflected in such Monthly
Subscription Information with regard to a Subscriber's Subscription in the PV System and
the beneficial share of photovoltaic energy produced by the PV System, or the share of
Unsubscribed Energy, shall be the full responsibility of the Community Solar Garden
Operator, unless such inaccuracies are caused by the Company.
Subscribers may also obtain from the Company the following information related to the
Solar*Rewards Community Program without obtaining written consent from the
Community Solar Garden Operator:
Site location
Operator name
Nameplate capacity
Production data related to the PV system
Bill Credit Rate and total amount of Bill Credits applied to the PV System
Any other information pertaining to the Subscriber's Subscription
Other information regarding the Community Solar Garden Operator known to the
Company will not be disclosed unless the Subscriber obtains prior explicit informed
consent from the Community Solar Garden Operator or unless directed to do so by the
MPUC or Minnesota Department of Commerce or compelled by law or regulation.
b. Information Available from the Community Solar Garden Operator
Subscribers and prospective subscribers can contact the Community Solar Garden Operator
to obtain the following information:
Future costs and benefits of the Subscription, including:
i. All nonrecurring (i.e., one-time) charges;
ii. All recurring charges;
39
iii. Terms and conditions of service;
iv. Whether any charges may increase during the course of service, and if so,
how much advance notice is provided to the Subscriber;
v. Whether the Subscriber may be required to sign a term contract;
vi. Terms and conditions for early termination;
vii. Any penalties that the Community Solar Garden may charge to the
Subscriber;
viii. The process for unsubscribing and any associated costs;
ix. An explanation of the Subscriber data the Community Solar Garden
Operator will share with Northern States Power Company and that Northern
States Power Company will share with the Community Solar Garden
Operator;
x. The data privacy policies of Northern States Power Company and of the
Community Solar Garden Operator;
xi. The method of providing notice to Subscribers when the Community Solar
Garden is out of service, including notice of estimated length and loss of
production;
xii. Assurance that all installations, upgrades and repairs will be under direct
supervision of a NABCEP-certified solar professional and that maintenance
will be performed according to industry standards, including the
recommendations of the manufacturers of solar panels and other operational
components;
xiii. Allocation of unsubscribed production; and
xiv. A statement that the Community Solar Garden Operator is solely
responsible for resolving any disputes with Northern States Power
Company or the Subscriber about the accuracy of the Community Solar
Garden production and that Northern States Power Company is solely
responsible for resolving any disputes with the Subscriber about the
applicable rate used to determine the amount of the Bill Credit.
Copy of the contract with Northern States Power Company for the
Solar*Rewards Community Program
40
Copy of the solar panel warranty
Description of the compensation to be paid for any underperformance
Proof of insurance
Proof of a long-term maintenance plan
Current production projections and a description of the methodology used
to develop production projections
Community Solar Garden Operator contact information for questions and
complaints
Demonstration to the Subscriber by the Community Solar Garden Operator
that it has sufficient funds to operate and maintain the Solar*Rewards
Community Program
The Community Solar Garden Operator is solely responsible for the accuracy of the
Subscriber's share of the Community Solar Garden production information forwarded to
the Company, and should resolve with the Subscriber any dispute regarding the accuracy
of such information.
Subscribers can submit comments to the Company on the accuracy and completeness of its
annual report by contacting solarrewardscommunity@xcelenergy.com.
4. Data Retention
The Company will retain the Subscriber's Account Information, Subscriber's Energy Usage
Data and information on Bill Credits for as long as required under applicable law.
BOARD AGENDA
Board of Commissioners
Fran Miron, District 1
Stan Karwoski, Chair, District 2
Gary Kriesel, District 3
Wayne A. Johnson, District 4
Lisa Weik, District 5October 15, 2019 - 9:00 AM
Assistive listening devices are available for use in the County Board Room
If you need assistance due to disability or language barrier, please call (651) 430-6000
EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
1. 9:00 Roll Call
Pledge of Allegiance
2. 9:00 Comments from the Public
Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue
is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board
Clerk or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and city of residence, and present your
comments. Your comments must be addressed exclusively to the Board Chair and the full Board of Commissioners. Comments addressed to individual
Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit
an individual's presentation if it becomes redundant, repetitive, overly argumentative, or if it is not relevant to an issue that is part of Washington County's
responsibilities.
3.9:10 Consent Calendar - Roll Call Vote
Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to
pull a Consent Calendar item(s) for discussion and/or separate action.
A.Approval of October 1, 2019, County Board meeting minutes.
B. Approve Amendment No. 1 to Contract No. 10746 with the Stillwater Gazette for legal
publications through December 31, 2019.
C. Approval to submit the Minnesota Family Investment Program (MFIP) Service Plan for
January 1, 2020 through December 31, 2021 to the Minnesota Department of Human Services
(DHS) and authorize its execution pursuant to Minn. Stat. 373.02.
D. Approve Grant Agreement No. 12940 with the Minnesota Department of Health, for the period
of January 1, 2020, through December 31, 2024, and authorize its execution pursuant to Minn.
Stat. 373.02.
4. 9:10 General Administration - Molly O'Rourke, County Administrator
A. Present the American Public Works Association (APWA) award for the downtown Afton
project (County State Aid Highway 21).
B.Adopt a resolution accepting the 2019 3rd quarter donations.
5. 9:25 Commissioner Reports - Comments - Questions
This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and
information, or raise questions to the staff. This action is not intended to result in substantive board action during this time. Any action necessary because of
discussion will be scheduled for a future board meeting.
6.Board Correspondence
7. 9:40 Adjourn
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EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
8.9:45-10:45 Board Workshop with Public Health and Environment
A.Overview of Proposed 2020 Budget for Washington Conservation District (WCD) and
Washington County Watershed organizations
9. 10:45-11:15 Break
10. 11:15-12:15 Board Workshop with Administration - Kevin Corbid, Deputy County Administrator
A.Review the draft 2020-2024 Capital Improvement Plan (CIP).
Washington
% -~County
BOARD AGENDA
Board of Commissioners
Fran Miron, District 1
Stan Karwoski, Chair, District 2
Gary Kriesel, District 3
Wayne A. Johnson, District 4
Lisa Weik, District 5
October 8, 2019 - 9:00 AM
Assistive listening devices are available for use in the County Board Room
If you need assistance due to disability or language barrier, please call (651) 430-6000
EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
1.9:00 Roll Call
Pledge of Allegiance
2.9:00 Comments from the Public
Visitors may share their comments or concerns on any issue that is a responsibility or function of Washington County Government, whether or not the issue
is listed on this agenda. Persons who wish to address the Board must fill out a comment card before the meeting begins and give it to the County Board
Clerk or the County Administrator. The County Board Chair will ask you to come to the podium, state your name and city of residence, and present your
comments. Your comments must be addressed exclusively to the Board Chair and the full Board of Commissioners. Comments addressed to individual
Board members will not be allowed. You are encouraged to limit your presentation to no more than five minutes. The Board Chair reserves the right to limit
an individual's presentation if it becomes redundant, repetitive, overly argumentative, or if it is not relevant to an issue that is part of Washington County's
responsibilities.
3. 9:10 Consent Calendar - Roll Call Vote
Consent Calendar items are generally defined as items of routine business, not requiring discussion, and approved in one vote. Commissioners may elect to
pull a Consent Calendar item(s) for discussion and/or separate action.
A.Approval of September 24, 2019, County Board meeting minutes.
B. Approval of county comments on the creation of Tax Increment Financing District 15 in the
City of Woodbury and direction to submit comments in a letter.
C. Adopt a resolution certifying to the county auditor special assessments for Property Assessed
Clean Energy (PACE) projects and order the county auditor to extend the assessments plus
interest upon the properties listed.
D. Adopt a resolution certifying to the county auditor unpaid County Environmental Charges
(CEC) and order the county auditor to extend the assessments with interest upon the tax rolls of
the county.
E. Approve comment letter to Rice Creek Watershed District in response to their Draft 2020-2029
Water Management Plan.
F. Award the bid to Prescription Landscape and authorize execution of Contract No. 12929 in the
amount of $105,728.27 with Prescription Landscape for the snow removal of surface lots and
sidewalks at the Stillwater Campus and Wildwood Library.
G. Adopt a resolution to participate in and apply for Minnesota Department of Natural Resources
(DNR) funding through the Minnesota Trails Assistance Program for maintenance of cross-
country ski trails within the County park system.
H. Adopt a resolution to participate in the Minnesota Department of Natural Resources
Snowmobile Trails Assistance Program, and for staff to administer the grant for the Star Trail
Association.
I. Approve Stormwater Management Facilities Maintenance Agreement No. 12957 between the
Rice Creek Watershed District and Washington County for the Wildwood Library.
J. Approval for the Washington County Sheriff's Office to accept a Toward Zero Deaths grant,
Contract No. 12952, from the Minnesota Department of Public Safety, Office of Traffic Safety
in the amount of $221,550 for the grant term of October 1, 2019, through September 30, 2020.
Assistive listening devices are available for use in the County Board Room
If you need assistance due to disability or language barrier, please call (651) 430-6000
EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
4. 9:10 Information Technology - Renee Heinbuch, Director
A. Approve Amendment No. 3, Contract No. 11862 between MP Nexlevel and Washington
County in the amount of $365,200 for a total contract amount of $677,200, and authorize its
execution pursuant to Minn. Stat. 373.02.
B. Approve Contract No. 12956 with MP Nexlevel for the maintenance of the county's fiber optic
cable system, and authorize its execution pursuant to Minn. Stat. 373.02.
5. 9:20 Public Works - Allan Brandt, Project Engineer (item A) - Sandy Breuer, Parks Director (items B1-B2)
A. Approval to authorize Contract No. 11853, Change Order No. 12, in the amount of $44,440.98
with Meyer Contracting, Inc. for the County State Aid Highway (CSAH) 23 Reconstruction
Project (RB-2599).
B. 1. Adopt a resolution to accept donation for installation of five benches, with memorial
plaques, along the St. Croix Multi-Use Trail. Donations provided by the Lower St. Croix
Valley Community Foundation in the amount of $17,000.
2. Adopt a resolution to accept a donation for installation of a bench in Point Douglas Park by
the Leadholm Family and Friends in the amount of $2,500.
6. 9:40 General Administration - Molly O'Rourke, County Administrator
7. 9:50 Commissioner Reports - Comments - Questions
This period of time shall be used by the Commissioners to report to the full Board on committee activities, make comments on matters of interest and
information, or raise questions to the staff. This action is not intended to result in substantive board action during this time. Any action necessary because of
discussion will be scheduled for a future board meeting.
8.Board Correspondence
9. 10:05 Adjourn
Assistive listening devices are available for use in the County Board Room
If you need assistance due to disability or language barrier, please call (651) 430-6000
EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER
10.10:10-10:45 Board Workshop with Property Records and Taxpayer Services - Jennifer Wagenius, Director
A.Discuss options for election grant funds expiring in 2019 and long-term election equipment
funding policy.
11. 10:50-11:Board Workshops with Administration - June Mathiowetz, Senior Planner
A. Discuss a potential Land and Water Legacy Program contribution for a conservation easement
on the Goodwin property in Stillwater Township.