City of Mora Kanabec County, Minnesota

Joint Meeting Agenda City Council/PUC

Tuesday, July 16, 2019 4:30 PM Mora City Hall

1. Call to Order

2. Roll Call

3. Adopt Agenda (No item of business shall be considered unless it appears on the agenda for the meeting. Council members may add items to the agenda prior to adoption of the agenda.)

4. Business Items

a. 2019 Budget Priorities and Capital Improvement Plan b. Communication Site Lease Agreement Discussion c. MnDOT and DEED Grant Opportunities

5. Reports

a. City Administrator/General Manager b. Public Works Director c. Commissioner Ardner d. Commissioner Heggernes e. Chair Baldwin f. Councilmember Anderson g. Councilmember L’Heureux h. Councilmember Mathison i. Councilmember Treiber j. Mayor Skramstad

6. Adjournment

Joint Item No. 4a

1

M E M O R A N D U M Date: July 16, 2019 To: Mayor and City Council

Public Utilities Commission From: Lindy Crawford, City Administrator/Public Utilities General Manager RE: 2020 Budget Priorities and Capital Improvement Plan

SUMMARY Staff is seeking direction on the preparation of the 2020 budget. New to this year’s budget process is the inclusion of a capital improvement plan (CIP). The City Council and PUC should discuss any specific projects, programs, rates, etc. that they wish to have included in the 2020 budgets. BACKGROUND INFORMATION As of July 12th, Mora is projected to receive an increase in LGA of $3,950.00. New to the 2020 budget process is the creation and inclusion of a capital improvement plan (CIP). This living document will assist staff, City Council and PUC in forecasting and funding future capital projects to ensure the City and MMU is being fiscally responsible. In general, the CIP includes items that will be useful for greater than one year and cost $5,000 or more to acquire. In the past, monies were transferred to the Future Improvement Fund (FIF) for these projects but there was no formal “plan”. A draft summary of years 2020-2024 are included in the packet for review. After receiving input from both boards, as a team, staff will prepare the preliminary budgets for City Council and PUC review and discussion. OPTIONS & IMPACTS Possible items to consider and discuss may be:

• Fleet replacements (streets, park/cemetery, water/sewer, electric) • Cemetery expansion • Fire hall roof replacement • City/MMU website upgrade • Computer replacement program

RECOMMENDATIONS Discuss any projects, programs, etc. that the City Council and PUC may wish to have included in the 2020 budget. Attachments Draft 2020-2024 CIP Summary

Capital Improvement Program

City of Mora, Minnesota

EXPENDITURES AND SOURCES SUMMARY

2020 thru 2024

TotalSource 2020 2021 2022 2023 2024

101 - Ad Valorem Tax Levy - transfer to FIF 1,945,650527,388 548,538 385,938 295,686 188,100

101 - General Fund Operating Budget 423,445162,035 107,980 82,980 18,000 52,450

222 - Fire Fund Operating Budget 67,0009,980 16,280 13,980 12,780 13,980

225 - Cemetery Fund Operating Budget 60,00055,000 5,000

407 - Fire Protect Svcs - City/Township Contrib 1,315,750136,250 287,815 302,515 287,815 301,355

407 - Future Fire Equipment Fund Reserves 623,41058,710 532,200 7,500 25,000

409 - Future Improvement Fund Reserves 39,80037,000 2,800

609 - Liquor Fund Operating Budget 179,25032,700 32,700 36,700 38,575 38,575

651 - Electric Fund Operating Budget 766,914150,894 147,560 201,893 192,033 74,534

651 - Electric Fund Reserves 164,500164,500

652 - Water Fund Operating Budget 583,973126,113 122,680 123,913 106,634 104,633

652 - Water Fund Reserves 75,25075,250

653 - Sewer Fund Operating Budget 732,873164,663 161,330 147,814 130,533 128,533

653 - Sewer Fund Reserves 75,25075,250

Federal or State Grants 198,75082,500 116,250

Salvage 71,00010,500 18,500 14,000 7,000 21,000

1,786,233 2,060,883 1,322,233 1,205,306 948,160 7,322,815SOURCE TOTAL

Total2020 2021 2022 2023 2024Department

1110 - Mayor & Council 5,0005,000

1520 - Finance 12,00012,000

1910 - Planning & Zoning 20,00015,000 5,000

1920 - Information Technology 87,20023,200 2,000 22,000 20,000 20,000

1940 - City Hall Building 11,0005,000 6,000

2120 - Law Enforcement 155,20547,555 9,500 43,700 10,000 44,450

2220 - Fire Dept 1,272,550128,430 552,230 35,930 12,530 543,430

2401 - Building Dept 25,00025,000

3121 - Streets 1,254,00065,000 375,000 315,000 265,000 234,000

3180 - City Garage 90,00090,000

5202 - Parks 78,00043,000 35,000

7310 - Airport 344,000134,000 155,000 55,000

7810 - Cemetery 207,00072,000 5,000 130,000

9490 - Sewer 470,000153,000 30,000 105,000 34,000 148,000

9530 - Electric 560,000240,000 75,000 110,000 105,000 30,000

787,185 1,222,730 672,630 821,530 1,086,880 4,590,955EXPENDITURE TOTAL

Friday, July 12, 2019Capital Improvement Program 2020-2024

DRAFT

Joint Item No. 4b

1

M E M O R A N D U M Date: July 16, 2019 To: City Council

Public Utilities Commission From: Lindy Crawford, City Administrator/ Public Utilities General Manager RE: Communication Site Lease Agreement Extension

SUMMARY Staff and Genesis Wireless have discussed amending the current communication site lease agreement with the City and MMU.

BACKGROUND INFORMATION The City and MMU currently have a communication site lease agreement with Genesis for equipment located on MMU’s water tower. An amendment to that agreement was made last year and will expire on July 31, 2019. Genesis has requested to renegotiate terms of the agreement rather than removing their equipment from the water tower.

Genesis and staff have come to an agreement on a proposed lease agreement with the PUC since it is on the MMU water tower. The proposal is a three year agreement with rent set at $840 for the first year and increase thereafter. The proposed agreement is consistent with other site lease agreements the City and MMU have.

OPTIONS & IMPACTS City Council

1. Motion to terminate the 2003 lease agreement and 2018 amendment with Genesis Wireless effectiveJuly 31, 2019.

Public Utilities Commission 1. Approve the proposed lease agreement as presented.2. Deny the lease agreement, consequently affecting Genesis’s ability to serve customers in the Mora

area.

RECOMMENDATIONS City Council

Motion to terminate the 2003 lease agreement and 2018 amendment with Genesis Wireless effective July 31, 2019.

Public Utilities Commission Motion to approve the proposed site lease agreement with Genesis Wireless as presented.

Memorandum

7/12/2019 2

Attachments 2003 City Lease Agreement 2018 City/PUC Lease Agreement Amendment 2019 PUC Proposed Lease Agreement

Joint Item No. 4c

1

M E M O R A N D U M Date: July 16, 2019 To: Mayor and City Council

Public Utilities Commission From: Lindy Crawford, City Administrator/Public Utilities General Manager RE: MnDOT and DEED Grant Opportunities ITEM SUMMARY MnDOT and DEED offer grants to finance infrastructure to create economic development opportunities and improve transportation systems. The city council and PUC will learn about two grant programs and consider applying for one or both to develop the eastern portion of Mora Industrial Park 2nd Addition. BACKGROUND INFORMATION With just three developed lots remaining in Mora Industrial Park 2nd Addition, the boards may wish to consider options for developing the eastern portion of the park providing five additional lots. The eastern portion requires the installation of utilities and approximately 1,481’ of street. Cost estimates for this work is $1,132,131.00, see attached proposal from SEH. Community Development Director Thorp and I attended an information session sponsored by MnDOT and DEED on June 27th to learn about the Transportation Economic Development (TED) Program and Transportation Economic Development Infrastructure (TEDI) Program. TED is administered by MnDOT and TEDI is administered by DEED, and both fund transportation improvements with measurable economic benefits. The grant programs can be used exclusively or in tandem. TED must have a trunk highway purpose – meaning it must improve, enhance, or modify a state trunk highway or highway right-of-way – and TED funds can only cover trunk highway eligible expenses. TEDI can be used for most aspects of infrastructure improvements that will promote economic development (predesign and design, acquisition of land, construction and reconstruction), but cannot be used for any trunk highway improvements. Staff learned about examples of TED and TEDI used in tandem for projects such as development of industrial parks located adjacent to trunk highways. More about TED: • Up to $20 Million available for projects in 2020-2022. • Maximum award is 70% of total project costs, up to $10 million. • To encourage applications for smaller projects, applicants for projects estimated to cost less than $1

million have fewer application requirements. • Projects must include and are scored on economic benefits (job creation / retention, income creation /

retention, benefits to regional economy), transportation benefits (need for the project, consistency with state and local plans, improvements for freight and multimodal transportation), and risk assessment (project readiness).

• Applications are due by Friday, September 6, 2019.

Memorandum

7/12/2019 2

More about TEDI: • Projects must increase employment and improve transportation systems to accommodate private

investment and job creation. • Applicant must be the entity that will own the public infrastructure (City of Mora and Mora Municipal

Utilities). • Up to $2.2 million available in 2019. • There is no match requirement; however, projects which include the leveraging of non-state funds will be

much more competitive. • Applications are scored on such things as proposed job creation, estimated increase in local tax base, level

of private investment, leverage of non-state funds, and improvement to the transportation system. • Applications are due by Friday, September 6, 2019. Staff believes, and MnDOT and DEED staff supported, that TED and TEDI could be used to develop the eastern portion of Mora Industrial Park 2nd Addition and add turn lanes to the industrial park from Highway 23. This project would require further assistance from the City Engineer and the City EDA learned of this at their July 10th meeting and supports the grant application. OPTIONS & IMPACTS 1. Applications for TED and/or TEDI funds would require or be enhanced by local matching funds. Staff

recommends the EDA also provide financial support for this project. 2. There is no immediate need for this project; however, there has been interest in at least one of the

eastern lots in the recent past (NorthStar Pontoons) and with just three developed lots remaining it would be a proactive project.

RECOMMENDATIONS Consider the use of TED and/or TEDI funds for the development of the eastern portion of Mora Industrial Park 2nd Addition and direct staff accordingly. Attachments TED and TEDI 2019 Summary Map of Mora Industrial Park 1st and 2nd Additions Engineering Cost Estiamtes

Engineers | Architects | Planners | Scientists

Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-5196

SEH is 100% employee-owned | sehinc.com | 651.490.2000 | 800.325.2055 | 888.908.8166 fax

MEMORANDUM

TO: Lindy Crawford - City Administrator FROM: Greg Anderson, PE - City Engineer (Lic. MN) DATE: July 12, 2019 RE: Industrial Park Expansion Project SEH No. MORA0 145879 14.00 Per your request we have reviewed the costs associated with the completion of the infrastructure in the Mora Industrial Park Project built in 1999. The original project included the plans to extend sanitary sewer and water along with a new road in the North Industrial Road right-of-way from Industrial Park Road, east to a connection with Industrial Park Boulevard. This would complete the infrastructure in the Industrial Park by providing utility service and a roadway to serve lots 2 & 3 of block 2 and lots 5 & 6 of block 3 of the Mora Industrial Park. The plans to complete the above work were incorporated with the original Industrial Park Expansion Project in 1999, but not constructed at that time. We have estimated the costs to complete the work per the 1999 plans at today’s construction prices. The estimated construction costs of the various components are:

Sanitary sewer and water main: $266,806 Street Construction: $865,325 Total $1,132,131

The above estimate includes $30,000 to install roadway lighting, similar to the existing street lighting. The above numbers include 10% for contingencies and 15% for administration, engineering, and inspection. The original plans from 1999 included connecting the new road extension to the current cul-de-sac at the east end of Industrial Park Boulevard. There has been discussion about not connecting the streets with the proposed improvements. If that decision is made, the street costs would be less than estimated above. ah c: Joe Kohlgraf, City of Mora s:\ko\m\mora0\145879\1-genl\14-corr\industrial park expansion memo 2019 07 12.docx