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City of Dundas

Administrator/Clerk’s Report City Council Meeting, August 22, 2016

To: Mayor and Council From: John M. McCarthy Date: August 19, 2016

Presentation

Green Team: Waste Management Public Sector Representative Jon Beseman will present a check for $317.00 to Rejoice! Youth Group for recycling 21.15 tons of cardboard and paper.

Public Forum Beseman has requested a few minutes to introduce himself and the local supervisors responsible for refuse collection in the City of Dundas.

Consent Agenda

Transfer: Transfer $199,056.66 from Fund 401 Capital Projects to Fund 602 Sewer. This transfer is to reimburse the Sewer Fund for the amount already spent for engineering and related costs attributable to the 2016 Force Main and Lift Station Project.

Old Business

2016 Force Main and Lift Station Project: The contractor has informed the City that the changes in location of the lift station and other project changes will add $90,000 to the project costs. This will bring the contract cost up to $869,545. Along with the $199,056.66 in costs already incurred and estimated additional soft costs, the project is currently projected to slightly exceed, by less than $10,000, the bond proceeds. Staff recommends approving the change and instructing the engineer to issue an order to proceed. (Motion) Approve Codification Services Agreement with American Legal Publishing Corporation: References supplied by American Legal Publishing have been contacted and all reported they were very satisfied with the company and product. A review of the services based on discussion at the August 8th work session, staff suggests the following services would be appropriate to the City of Dundas: Codification including zoning and subdivision $18,795 Legal Conference with Attorney (Cost) Searchable Code (Folio format) 595 Estimated Total Cost $19,390 Additional annual updates: Future supplements of Folio Code $195 Code on the Internet 450 List of Ordinances not yet codified 125 New Ordinance Notification _____10

Estimated Annual Cost $780 Recommend the Mayor and City Administrator/Clerk be authorized to sign the Codification Services Agreement with American Legal Publishing of Cincinnati, Ohio. (Motion)

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Ordinances and Resolutions

Ordinance 2016 – 04 Opt Out of Requirements of MN §§ 462.3593: On August 18, 2016, the Dundas Planning Commission held a Public Hearing to consider opting-out of the requirements of a recent State Statute to permit and regulate temporary family health care dwellings. No members of the public presented information either in support or opposed to opting-out. The Commission members thoroughly discussed the merits with a lot of interest in providing an opportunity for a family care option. The Commission voted 4 to 2 to recommend the City of Dundas adopt the Ordinance opting-out of MN §§ 462.3593. (Motion) Resolution 2016 – 39 Accepting Park Related Donations: Local resident Arlene Williams donated $200.00 to the City of Dundas to help offset the cost of replacing the purple, bouncing dinosaur at the play area in Memorial Park. Since William’s donation an additional $575 has been raised from Frandsen Bank and Trust, Dawn’s Corner Bar, Firehouse Liquor, Complete Chiropractic, Martha’s Eats and Treats and Linda Ripka for the replacement of the play equipment. Kathrin Caton has donated $50.00 to be used for the pavilion at Memorial Park and the volunteers who put on the pancake breakfast during Celebrate Dundas have donated $437 to be used for park purposes. (Motion)

New Business

Approve Replacing Play Equipment at Memorial Park: At the August 16th Park and Recreation Advisory Board meeting, the replacement of the spring-mounted riding dinosaur was discussed. The Board had previously recommended not replacing due to cost which was estimated to be in the $900 range. A donation by Arlene Williams to assist in the replacement triggered the discussion and a recommendation the City use funds up to $1,000, including donated monies, to replace the equipment. The cost of the exact replacement is $939.03. (Motion)

Attorney’s Report

Request for Funds: A letter has been sent to Dan Zander, Titan Supply Company, indicating the request for funds is not in compliance with the terms of the Settlement Agreement.

Administrator’s Report Financial: General Fund Revenue for the first seven months of 2016 is $651,783 or $98,499 more than last year The increase is due to the increased levy, higher than anticipated excess TIF collections and building permit fees. General Fund Expenditures for the same period are $532,482 or $88,280 more than the same period last year. Some of the increase in spending is a result of higher than planned costs for the purchase of a used fire truck by NAFRS and an increase in funds disbursed for fees related to building permits Comparable period Water Fund Revenues of $144,342.31 are up $9,660. Revenue from sales of water are higher than last year. Water fund expenses of $109,076 have increased by $1,406. Sewer Fund Revenues of $241,668 are up $15,744 from the same period last year. Sewer Fund operating expenses of $136,334 are up by $813,005 from 2015 Cannon River Regional Park: Work on the Regional Park appears to be at a standstill due to the high water. Notice of Violation: The City has received a Notice of Violation from the City of Northfield regarding an excessive amount of Total Suspended Solids (TSS) in the wastewater stream. Staff has been unable to determine the source of the TSS and flows have returned to normal. Tax Rebate to Bridgewater Township: Bridgewater Township has submitted an invoice for the 2015 tax rebate for developed property in the area annexed. There appears to be properties which are not developed included in the documentation which accompanied the invoice. The Township has been informed that there appears to be problems and has been asked to review and correct if necessary.

Council and Committees

P&RAB: The Park and Recreation Advisory Board met on Tuesday, August 16. The Board reviewed a proposal to develop a passive park, talked about fence improvements at the Dog Park and reviewed the proposed 2017 budget. Some slight changes in line item amounts were suggested to more closely comply with board goals but the total remains unchanged. The Board also considered a request to replace the spring-mounted dinosaur at

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Memorial Park which was accompanied by a $200.00 donation to help defray the costs. The cost of replacement will be about $939.03 including shipping. Additional donations of $375.00 had been promised and the Board reversed the previous recommendation not to replace the dinosaur. Planning Commission: The Dundas Planning Commission met on Thursday, August 18. As part of the discussion of the “opt-out” ordinance, some Commissioners expressed interest in re-visiting the residential codes to see if there was interest in permitting two residential units on a single family lot. The Commissioners reviewed a proposed expansion of the Menards facility with real estate representative Tyler Edwards. The Commission supported the concept but had questions especially regarding a proposed relocation of the security fence. Edwards will revisit the design and get back to the City. The Commission reviewed a memo from City Planner Nate Sparks which described how several other cities addressed more than one sign on a single occupancy commercial building. .

Work Session Water Fund Review: A preliminary review of the water enterprise fund suggests the fund is in excellent shape for the next few years. In 2015 a $1.00 increase in the base for 2016 was implemented with another $1.00 planned for 2017. The preliminary recommendation is to continue with increasing the base rate to account for the anticipated negative cash flow beginning when TIF #2 revenue is no longer available.

Future Meeting Items September 12, 2016 1. Adopt preliminary levy and budget. 2. Consider amended Parking and Blight Ordinances 3. Consider NAFRS 2017 Operating Budget Request 4. Worksession a. Review 2017 Sewer Fund Budget September 26, 2016 1. Worksession a. Review 2017 Refuse and Storm Water Fund Budgets b. Draft Personnel Policy Review October 10, 2016 1. Worksession a. 2017 Fees b. Health Insurance

CITY OF DUNDASCOUNTY OF RICE

STATE OF MINNESOTA

RESOLUTION NUMBER 2016 - 38

A Resolution Certifying Unpaid Utility Charges

WHEREAS, pursuant to proper notice duly given as required by law, the Dundas CityCouncil has met, heard, and passed upon all objections to the proposed assessments for unpaidutility charges for water, sewer, garbage, and water meters; and

WHEREAS, the amounts of bad debt have been minimized through diligent collectionefforts by staff;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City ofDundas, Minnesota:

1. Such proposed assessments for unpaid utility charges, as listed in Exhibit Aand made a part hereof, is hereby accepted and shall constitute theassessments against the land and named herein.

2. Such liens shall be payable over a period of one year on or before the firstMonday in January 2018.

3. The owner of the property so charged may, at any time prior to certificationof the assessment to the Rice County Auditor, pay the whole of theassessment on such property to the Dundas City Clerk/Treasurer.

4. The City Clerk shall forthwith transmit a certified listing of the assessmentsto the Rice County Auditor to be extended on the proper tax lists of theCounty and such assessments shall be collected and paid over in the samemanner as property taxes along with any certified fees.

ADOPTED BY the City Council of Dundas, Minnesota, on this 22nd day of August 2016.

CITY OF DUNDAS BY: ATTESTED:

_________________________ ________________________________Glenn Switzer, Mayor John M. McCarthy, Administrator/Clerk

Resolution 2016-38

___________Switzer _____________Cruz ______________Fowler ___________Modory __________Pribyl

EXHIBIT “A” Resolution 2016-38

ASSESSMENT LIST (OWNER) PARCEL ID#UNPAID

AMOUNT

Robert/Julie Kasal 17.10.4.26.034 604.62

Jeff/Heather Kelleher 17.10.4.26.026 611.34

Gary/Christine Lee 17.10.4.26.029 705.91

Kari Olson 17.14.2.25.001 434.22

Chris/Stacy Haugan 17.10.4.52.003 348.09

Thomas Schwartz 17.15.1.01.116 383.58

Reed/Donna Reinke 17.15.1.01.036 425.76

Daryl/Stacy Bigelow 17.13.2.26.36 450.03

Cory/Christ Miller 17.13.2.26.135 439.49

Arlo/Jessica Bettinger 17.10.4.28.003 586.05

James D Ingham 17.15.1.01.034 382.93

Jared/Jessica Jackson 17.13.2.26.117 472.27

Jessica Russell Wilhem 17.11.3.51.003 634.03

Tabitha Kramer 17.10.4.75.009 402.38

Eklou, Doh/Emmy 17.13.2.32.019 462.71

901 Argyle Partnership 17.11.3.50.002 289.04

TOTAL (16 properties) $7,632.45

ORDINANCE 2016-04

CITY OF DUNDASCOUNTY OF RICE

STATE OF MINNESOTA

An Ordinance Amending Dundas City Code, Title 15, Section 4, Subsection 2Opting-Out of the Requirements of Minnesota Statutes Section 462.3593

WHEREAS, on May 12, 2016, Governor Mark Dayton signed into law the creation andregulation of temporary family health care dwellings, codified at Minn. Stat. §462.3593, whichpermit and regulate temporary family health care dwellings, and

WHEREAS, subdivision 9 of Minn. Stat. §462.3593 allows cities to “opt out” of thoseregulations; and

WHEREAS, the Dundas Planning Commission, held a public hearing on Thursday,August 18, 2016, after providing notice as required by state statute and City Code, with respectto amending the Zoning Ordinance to “opt-out” of the rules and regulations regarding temporaryfamily health care dwellings, codified in Minn. Stat. § 462.3593;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DUNDAS DOESHEREBY ORDAIN:

Section 1. City Code Title 15, Section 4, Subsection 2 (D) is hereby amended to add as follows:

(D) Pursuant to authority granted by Minnesota Statutes, Section 462.3593,subdivision 9, the City of Dundas opts-out of the requirements of Minn. Stat.§462.3593, which defines and regulates Temporary Family Health CareDwellings.

Section 2. This Ordinance shall be effective immediately upon its passage and publication.

ADOPTED by the City Council, of Dundas, Minnesota, on this 22nd day of August 2016.

CITY OF DUNDAS BY: ATTEST:

__________________________ _______________________________Glenn Switzer, Mayor John M. McCarthy, Administrator/Clerk

Ordinance 2016-04

___________Switzer ____________Cruz ____________Fowler_____________Modory _____________Pribyl

Published in Faribault Daily News: August 25, 2016

MEMORANDUM

TO: John McCarthy, City Administrator

FROM: Nate Sparks

RE: Temporary Family Health Care Facilities

DATE: June 29, 2016

Background. This spring, the Legislature passed, and the Governor signed, a law purporting to requiremunicipalities to allow “Temporary Family Health Care Dwellings” under MN Stat Section 462.3593.The new law defines these dwellings, requires their accommodation, but includes an “opt-out”provision that permits the municipality to exempt themselves from the provisions.

Intent of the new law. The statute itself was developed and put forward by a New Brighton firm thatbuilds these units, called “Next Door Housing”. The statute includes an exemption for anymunicipality that already has an ordinance that allows temporary health care dwellings as a permitteduse, the statute applies. The statute is also specific about applying in cases where a municipality hasordinances that would otherwise prohibit the use through a reference to its accessory use provisions orrecreational vehicle regulations.

Components of the Statute. The new law includes the following aspects:

• Definitions of caregiver, person needing care, and “relative” providing care;• Specifies that the subject of the statute is a “mobile” residential dwelling;• Specifies that the unit must be built off-site;• Specifies that the unit is no more than 300 square feet, and has no permanent foundation;• That the unit is “universally” designed and meets accessibility standards;• That the unit access plumbing and electrical through the principal home, or “other comparable

means”.• That the unit uses exterior materials compatible to “standard residential construction” and has

an energy rating of R-15;• Is sized to be movable with a one-ton pickup truck;• Provides that such units will be permitted uses;• Provides for an application and permitting process, including notice to “adjacent” property

owners;• Provides that the unit must meet setbacks and floor area ratio requirements;• Provides that the unit is occupied by only one person;• Provides for one six-month permit term, and one additional six month term;• Provides for municipal inspection and a revocation process;

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• Provides for a maximum $100 fee for the initial permit, and $50 fee for the additional termextension;

• Incorporates MN Stat Section 15.99 for permit review.• Provides for the opt-out ordinance as noted below.

Opt-out provision. The new statute, as a part of MN Stat 462 is incorporated into the municipalplanning and zoning regulations, and will become effective on September 1, 2016. The municipalitywill have to opt out of the regulation prior to that date to avoid its effect. Because this appears to be azoning regulation, any opt-out will need to be processed as an amendment to the zoning ordinance,requiring the typical hearing and ordinance adoption. The only opt-out is an explicit opt-out. TheLeague of Minnesota Cities has drafted a model opt-out ordinance, which is attached to this report.

Accessory dwelling units generally. The issue of accessory dwelling units for the purpose of providingliving space for family members needing care has been widely discussed. The context for most of thesediscussions has been for attached units that constitute some form of second dwelling on single familyparcels. There are various arguments, pro and con, for these units.

Issues under the new law. Apart from the issues raised by accessory dwellings, the Temporary FamilyHealth Care Dwelling addresses a separate aspect of this issue – mobile, detached “trailer” units that arehauled to the subject residential property, installed with connections to the electrical and plumbingservices from the main house, and then detached and removed, theoretically, when their use is nolonger needed.

The statute provides for a single six-month period of installation, and the option for one additional six-month period. The statute also provides for an extensive process of permitting and locationalregulations that would supersede a community’s normal review process. It is not clear how the statutemight apply to somebody who wishes to apply for a third six-month period – it would appear that thestatute prohibits that extension.

Summary and Alternatives.

1. The City may choose to do nothing, and allow the statute to go into effect. In this case, all ofthe details of the law, including size, location, construction, delivery, timing, and process wouldbe regulated by the statute.

2. The City may decide that it wishes to allow Temporary Family Health Care Dwellings, butprefer ordinance details more tuned to the City’s specific requirements and zoning objectives.Examples of alternatives preferred by the municipality might be providing for site-builtfacilities, differences in size or materials, differences in location or screening requirements, theuse of interim use permits or conditional use permits, or alternative notice requirements, just toname a few. In such a case, the City should take action to adopt an ordinance opting-out of thestatute, and proceed to adopt its own regulations. It will be important that the municipality opt-out of the state law, or the statute may have the effect of pre-empting the preferred alternative.

3. The City may decide that only attached accessory units are suitable in their community or wishto revisit this topic at a future date and choose to pass the opt-out ordinance with no furtherdiscussion on the matter, at this time.

Since the opt-out ordinance will need to be adopted into the Zoning Ordinance, a public hearing will berequired.

CITY OF DUNDASCOUNTY OF RICE

STATE OF MINNESOTA

RESOLUTION NUMBER 2016 – 39

A Resolution Accepting Park Related Donations

WHEREAS, Edward Williams Memorial Fund proposed a contribution of $200.00 to theCity of Dundas (the City); and

WHEREAS, Frandsen Bank and Trust proposed a contribution of $200.00 to the City;and

WHEREAS, Dawn’s Corner Bar proposed a contribution of $100.00 to the City; and

WHEREAS, Firehouse Liquor proposed a contribution of $100.00 to the City; and

WHEREAS, Complete Chiropractic proposed a contribution of $100.00 to the City; and

WHEREAS, Martha’s Eats and Treats proposed a contribution of $25.00 to the City; and

WHEREAS, Linda Ripka proposed a contribution of $50.00 to the City in memory ofAvis Taylor; and

WHEREAS, Arlene Williams, Frandsen Trust & Bank, Dawn’s Corner Bar, FirehouseLiquor, Complete Chiropractic, Martha’s Eats and Treats, and Linda Ripka have requested suchfunds be used toward play equipment at the Memorial Park; and

WHEREAS, Kathryn Caton proposed a contribution of $50.00 to the City of Dundas inmemory of Ed and Kathryn Graff and has requested such funds be used for pavilion relatedexpenses at Memorial Park; and

WHEREAS, Pancake Breakfast volunteers proposed contribution of $437.00 to the Cityand have requested their funds be used for park related expenses; and

WHEREAS, the Dundas Park and Recreation Advisory Board has recommended anydonations be used to offset the costs of the pavilion, playground equipment and other park relatedexpenses; and

WHEREAS, the City Council of the City agrees that said contribution would be of benefitto the citizens of Dundas;

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City herebyacknowledges and agrees to accept said donations on behalf of the citizens of Dundas as follows:

1. $775.00 (seven hundred, seventy-five dollars) contribution be applied andused to support expenses involved with playground equipment atMemorial Park

2. $50.00 (fifty dollars) contribution be applied and used to support expensesinvolved with the pavilion at Memorial Park.

3. $437.00 (four hundred, thirty-seven dollars) be applied and used tosupport expenses involved with parks.

ADOPTED BY the City Council of Dundas, Minnesota, on this 22nd day of August 2016.

CITY OF DUNDAS BY: ATTEST:

____________________ ________________________________Glenn Switzer, Mayor John M. McCarthy, Administrator/Clerk

Resolution 2016-39

_____________Switzer _____________Cruz _______________ Fowler___________Modory_____________Pribyl

Water Fund Budget 2016

Actual Budget Est. % Proposed 3 Year2015 2016 2016 Adjust 2017 Average

Operating Revenue Water Sales 248,747 266,021 234,538 -12.9% 231,647 262,167Water Connect/Reconnect Fee 6,000 7,500 5,143 0.0% 7,500 9,358Sale of Water Meters 2,803 2,000 2,137 0.0% 2,000 3,350Fees 47,410 41,003 46,921 L 17.0% 47,974 40,836Total Operating Revenue 304,960 316,524 288,739 289,121 315,712

Operating ExpenseAdministrative

Salaries and Wages 16,513 17,082 19,572 3.0% 17,594 15,848PERA 1,179 1,238 1,414 3.0% 1,276 1,189Payroll Taxes 1,059 1,307 1,497 3.0% 1,346 1,193Employee Benefits 837 3,286 1,249 0.0% 3,286 2,394

Total Administrative 19,588 22,913 23,733 23,502 20,623

Maintenance and Operation:Salaries and Wages 33,810 33,990 31,991 3.0% 35,010 35,784PERA 2,685 2,464 2,093 3.0% 2,538 2,604Payroll Taxes 2,670 2,600 2,447 3.0% 2,678 2,765Employee Benefits 116 4,718 123 0.0% 4,718 3,510Worker's Comp Insurance Prem 812 2,238 1,104 -25.0% 1,679 1,207Supplies 11,600 12,701 12,629 3.0% 13,082 16,079Training and Instruction Permits 0 900 511 0.0% 900 0Gas. Diesel, LP 0 2,178 1,335 -20.0% 1,742 0Professional Services 3,878 7,200 22,954 0.0% 7,200 11,664EDP/SCADA 664 385 253 0.0% 385 412Telephone & Communications 2,268 2,566 2,126 -5.0% 2,438 2,443Postage 990 1,134 745 -10.0% 1,021 1,128Mileage Reimb 2,090 1,010 1,831 50.0% 1,515 2,431Printing/Legal Notice 0 0 0 0.0% 0 0Insurance Liability 4,154 536 176 L -25.0% 402 4,332Insurance Property 0 5,754 3,920 L -25.0% 4,316 0Utilities Expenses 23,285 25,676 21,798 0.0% 25,676 24,832Repairs and Maintenance 47,202 52,653 49,299 5.0% 55,286 63,768Equipment 0 1,000 1,084 100.0% 2,000 0Grounds Maintenance 0 2,520 660 -20.0% 2,016 0Vehicle Fuel 0 1,356 551 -20.0% 1,085 0Vehicle O&M 632 1,155 430 25.0% 1,444 1,367Dues and Subscriptions 603 660 1,085 25.0% 825 565Capital Outlay 0 8,678 0 -40.0% 5,207 0Other Expense 720 0 0 0.0% 0 1,184

Total Maint. and Operations 138,179 174,072 159,146 173,161 176,076

Total Operating Expenditures 157,767 196,985 182,879 196,663 196,699

Operating Revenue/Expense 147,193 119,539 105,860 92,458 119,013

2017 W&S Review 1607 .xlsx Water Fund Operating 8/19/2016

Water Projection

525Review of Water Enterprise Fund Estimated Proposed

2016 2017 2018 2019 2020Operating Revenue / Expense

Water Sales 234,538 -1.2% 231,647 1.1% 234,094 1.0% 236,541 239,396WAC 5,143 7,500 7,500 9,000 9,000Other Revenue 49,058 1.9% 49,974 3.0% 51,473 3.0% 53,017 54,607Total Operating Revenue 288,739 0.1% 289,121 1.4% 293,067 1.9% 298,558 303,004

Operating ExpendaturesWages /PERA/FICA 59,014 2.4% 60,442 3.0% 62,255 3.0% 64,123 66,047Insurance Benefits 2,476 291.1% 9,683 3.0% 9,973 3.0% 10,272 10,580Supplies/Operations 117,293 3.9% 121,821 3.0% 125,475 3.0% 129,240 134,409Insurance 4,096 15.2% 4,718 3.0% 4,859 2.0% 4,956 5,055Total Operating Exp 182,879 7.5% 196,663 3.0% 202,563 3.0% 208,591 216,092

Operating Income / (Loss) $105,860 -12.7% $92,458 -2.1% $90,504 -0.6% $89,967 $86,912

Non Operating Rev./Exp.Est. Interest Rate 0.5% 0.8% 1.0% 1.3% 1.5%

AssessmentInterest income 2,241 3,923 5,865 7,876 10,128Bond Interest /(expense) (52,795) (45,925) (38,785) (34,035) (30,748)Capital Improvements paid by cash 0 0 0 0 0Transfers - In / (Out) 383,675 381,945 385,025 155,275 0Transfer - From/(To) Sewer (20,000) (20,000) (40,000) (40,000) (40,000)Other Income / (expense) 0 0 0 0Total non-operating 313,121 319,944 312,105 89,117 (60,620)

Principal Payment (344,000) (349,000) (359,000) (134,000) (134,000)

Cash ReserveResrve (3 month recommended) 45,720 49,166 50,641 52,148 54,023Reserve for Replacement 30,000 5000 35,000 5000 40,000 5000 45,000 50,000Bond Reserve 394,925 397,785 168,035 164,748 166,680Total Cash Required 470,644 481,950 258,675 261,896 270,703

Beginning Cash 448,101 523,082 586,484 630,093 675,177Cash Avaiable / (Required) O&M + P&I 74,981 63,402 43,610 45,084 (107,708)Advance / (Repay) Dev. Fees-other Funds 0 0 0 0 0Cash Reserve (Debt) 523,082 586,484 630,093 675,177 567,469

Cash (short)/long 52,438 104,533 371,418 413,281 296,766

2017 W&S Review 1607 .xlsx 8/19/2016