Special Council Meeting

Council Work Session Agenda Wednesday, July 20, 2022 at 5:30 PM Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. ADOPTION OF AGENDA 5. CONSENT AGENDA 5.1. License to Serve: Tina Burmeister, Star Prairie, WI; Al Waschke, New Richmond, WI; Shanae Demulling, New Richmond, WI; Rylee Olien, New Richmond, WI; Jacob Meyer, New Richmond, WI; Joshua Hagel, New Richmond, WI; Morgan Kelly, New Richmond, WI; Esther Vail, New Richmond, WI 5.2. Surplus Fire Department Equipment 3 Memo: Surplus Fire Department Equipment 5.3. Development Agreement - Hamilton Ave 4 - 26 McDonald and Sons_Hamilton Ave Agreement 6. NEW BUSINESS 6.1. CSM Application: Bonham Construction and Maintenance LLC 27 - 32 MEMO: TSC CSM 6.2. Storm Water Utility Rate Study 33 - 40 Storm Water Utility Rate Study 6.3. Lease Agreement with Sylvester Custom Grinding and Yard Waste 41 - 43 Collection / Disposal Memo: Compost Site and Yard Waste Collection / Disposal 7. COMMUNICATIONS AND MISCELLANEOUS 8. CLOSED SESSION Page 1 of 43  Closed Session per Wis. Stat. 19.95(1)(e) Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. 8.1. Parcel ID 261-1233-80-050 (northeast corner of intersection of St Croix Avenue and Wisconsin Drive) 9. OPEN SESSION 10. ADJOURNMENT Page 2 of 43  MEMO Prepared for: Mayor Zajkowski and City Council Staff Contact: Noah Wiedenfeld Meeting: Special Council Meeting - 20 Jul 2022 Subject: Surplus Fire Department Equipment BACKGROUND INFORMATION: The Fire Department has compiled a list of expired personal protective equipment (PPE) which it would like to declare surplus and donate to Wisconsin/Nicaragua Partners of the Americas, Inc. (a non-profit organization headquartered in Stevens Point) to be used by firefighters in Nicaragua. The Fire Department made two similar donations last year. The surplus equipment list is as follows: - 2 helmets - 6 pairs of turnout pants - 3 turnout jackets - 7 pairs of boots - 3 pairs of structural firefighting gloves - 1 wildland jumpsuit - 5 rescue harnesses RECOMMENDATION: Staff recommend declaring this list of equipment as surplus property and authorizing it to be donated to Wisconsin/Nicaragua Partners of the Americas, Inc. Page 3 of 43 Page 4 of 43 Page 5 of 43 Page 6 of 43 Page 7 of 43 Page 8 of 43 Page 9 of 43 Page 10 of 43 Page 11 of 43 Page 12 of 43 Page 13 of 43 Page 14 of 43 Page 15 of 43 Page 16 of 43 Page 17 of 43 Page 18 of 43 Page 19 of 43 Page 20 of 43 Page 21 of 43 Page 22 of 43 Page 23 of 43 Page 24 of 43 Page 25 of 43 Page 26 of 43  MEMO Prepared for: Mayor James Zajkowski and Council Staff Contact: Katrina Berg Meeting: Special Council Meeting - 20 Jul 2022 Subject: Bonham Construction and Maintenance LLC CSM Application BACKGROUND INFORMATION: Bonham Construction and Maintenance Services, LLC has submitted a certified survey map application to subdivide PID 261-1356-00-000 from a singular 12 acre lot to a 4.3 acre lot and a 7.7 acre lot. This application is subject to the review of the Development Review Committee and Plan Commission, with final action taken by the City Council. ANALYSIS Comprehensive Plan. The subject site is located on a parcel designated for Mixed Use Corridor future land use, which includes a mixture of regional commercial, retail, office, lodging, and multi-family residential uses in a mixture of building forms, oriented either vertically or horizontally. Other complementary uses may be included such as schools, churches, and parks. Mixed-Use Corridors are located along primary arterial streets. Development will include landscaped parking lots and interconnected sidewalks or multi-use trails. The subject site also adheres to the Comprehensive Plan goal of “Plan for mixed-use development along major corridors (STH 64 and STH 65), including commercial retail, high density residential, office, and light industrial land uses.” The proposed land division is consistent with the goals and visions of the Comprehensive Plan. Zoning. The subject site is zoned Z3 Multi/Use Corridor. The purpose of the Z3 Multi-Use/Corridor District is to provide a mixture of regional commercial, retail, office, lodging and residential uses in a mixture of building forms. Other complementary uses such as schools, churches and parks are allowed. These neighborhoods will generally be located along arterial streets. Developments will include landscaped surface parking lots and interconnected sidewalks or multi-use trails. The proposed land division provides for adequate lot space to accomplish any of the allowed uses. Lot Occupation. Both the existing and proposed lots exceed the minimum lot width requirement of 80 feet in Ordinance Sec 121-39. Properties with a Z3 Zoning District designation must adhere to the maximum lot coverage of 70% when they are developed. The proposed subdivision does not conflict with these requirements, but the lot coverage requirement shall be reviewed as part of a future site plan/stormwater application. Page 27 of 43 Easements. According to NRMC Section 117-41 Easements, an easement for drainage and utilities at least 10 feet wide along front and rear lot lines, and 5 feet wide along all abutting side lot lines, is provided. Stormwater. Stormwater plans will be evaluated by City staff and the City’s engineering consultant as part of a future site plan/stormwater application. Access. In accordance with Section 117-33(b) of the City’s municipal code, both proposed lots have access to a public street. RECOMMENDATION: RECOMMENDATION The DRC reviewed this certified survey map application at their meeting on 10 July 2022 and recommends approval. The City Council should consider Plan Commission's recommendation after their review prior to this meeting. ATTACHMENTS: TSC CSM Page 2 of 6 Page 28 of 43  w.‘°-., , ,~".:osHuA .: PRENTICE5*;-_ s.2e52 5 ‘-.80!-|OF|ELD.;‘§S ,0‘. 0. €\\ 7¢D'os.,l.j,., Page 3 of 6 Page 29 of 43  w.‘°-., , ,~".:osHuA .: PRENTICE5*;-_ s.2e52 5 ‘«.Scl-|OF|ELD.;‘ §S ,0‘. 7¢ 0. €\\ Page 4 of 6 Page 30 of 43 Page 5 of 6 Page 31 of 43 Page 6 of 6 Page 32 of 43  MEMO Prepared for: Mayor Zajkowski and City Council Staff Contact: Rae Ann Ailts Meeting: Special Council Meeting - 20 Jul 2022 Subject: Storm Water Utility Rate Study BACKGROUND INFORMATION: In 2005, the New Richmond City Council created, by Ordinance (No. 330), a Storm Water Utility to finance the City’s Storm Water Management Program. Since this time periodic internal reviews of the rates have been conducted. However, an updated rate study has not been completed since the Ordinance was created. Rate studies are recommended to be conducted at least every 5-8 years to ensure rates are in alignment to support the operational, maintenance and capital needs of the utility. Attached is a draft Request for Proposals seeking qualified firms to conduct a rate study for the Storm Water Utility. If approved, a recommendation will be brought forward at the August 29, 2022 work session so the study can begin as quickly as possible. FINANCIAL IMPACT: Funding for the rate study will be paid through the Storm Water Utility fund. RECOMMENDATION: Staff recommends approval to publish and seek proposals for a Storm Water Utility rate study. ATTACHMENTS: Draft-RFP Storm Water Utility Rate_Clean Page 33 of 43  City of New Richmond P age|1 Storm Water Utility Rate Request for Proposals Storm Water Utility Rate RFP Release Date: July 21, 2022 RFP Proposal Due Date: August 22, 2022 Notice and Instructions 1. RFP’s must be received at the below office no later than 4:30 p.m. on Monday, August 22, 2022. 2. Submit only electronic copies of your RFP to: City of New Richmond Attn: Rae Ann Ailts, Assistant City Administrator/Finance Director 156 East First Street New Richmond, WI 54017 railts@newrichmondwi.gov 3. Any late, faxed and/or unsigned RFP’s will not be accepted. Page 2 of 8 Page 34 of 43  City of New Richmond P age|2 Storm Water Utility Rate Table of Contents 1. Introduction……………………………………………………………………………………………..3 2. History and Background……………………………………………………………………………3 3. Scope of Services………………………………………………………………………………………4-5 4. Communications and Submission……………………………………………………………..5 5. Qualifications and Experience of Firm……………………………………………………….5 6. References………………………………………………………………………………………………..6 7. Proposal Selection……………………………………………………………………………………..6-7 8. Award of Contract………………………………………………………………………………………7 9. Disclosure……………………………………………………………………………………………………7 Page 3 of 8 Page 35 of 43  City of New Richmond P age|3 Storm Water Utility Rate 1. INTRODUCTION The City of New Richmond is requesting proposals from qualified firms to conduct a comprehensive Storm Water Utility rate study. The consulting firm will provide an independent analysis of existing rates and recommend appropriate adjustments in rate levels and/or structures necessary to fund Storm Water operations, maintenance, capital costs, and debt service. The proposed rate analysis will provide a minimum five-year rate forecast (2023-2027). The rate study will be based upon a comprehensive review of the City’s storm water budgets, future growth, facility plans and studies, and any other information deemed necessary. 2. HISTORY AND BACKGROUND The City of New Richmond, also known as “The City Beautiful”, was founded in 1857, and is located 40 miles east of the Twin Cities in the scenic St. Croix Valley Area. We are a growing community of 10,079 people. The City is projected to grow at a rate of 236 people/92 homes per year over the next 20 years. New Richmond issued 244 permits for new home construction and 71 permits for new commercial building construction in 2021. Through June 2022, the City has issued 161 residential permits and 44 commercial permits. Modest residential and commercial growth is expected to continue through the five-year rate horizon. The City’s Street Department is responsible for maintenance of the City’s roadways, a network of over 63 miles of local streets, collectors and arterials. The City has approximately 50 miles of storm water mains. The Streets Department is also tasked with maintaining the City’s storm water collection and treatment system, generally consisting of pipes, manholes, catch basins and retention ponds. In 2005, the New Richmond City Council created, by Ordinance (No. 330), a Storm Water Utility to finance the City’s Storm Water Management Program. The details of the Storm Water Utility Ordinance can be found through the below links: Sec 86-67 General Operation Sec 86-68 Definitions Sec 86-69 Storm water Utility Factors Page 4 of 8 Page 36 of 43  City of New Richmond P age|4 Storm Water Utility Rate 3. SCOPE OF SERVICES Study Objectives 1. Provide cost-of-services analyses that identify both the direct and indirect cost of providing Storm Water services. 2. Recommend rates necessary to adequately fund the Storm Water systems through the minimum 5-year rate horizon, including consideration of annual inflationary/indexed adjustments. 3. Ensure that rate structures fairly distribute the cost of service among users. Study Requirements 1. The recommended rates shall be based on the cost of service and shall be sufficient to meet the revenue requirements of the Storm Water Utility. 2. The study should identify restructuring of user charges as appropriate. 3. The study shall recommend rates and, if necessary, rate structures that consider and provide for the following factors: a. Current and future cost of providing Storm Water services in accordance with established and anticipated standards, regulations, facility and capital improvement plans. b. Projected demands. c. Age and condition of infrastructure and systems. d. Funding requirements for all current long-term liabilities and debt obligations. e. System reinvestment equal to annual depreciation expense. 4. The study shall provide direct identification of revenues appropriated to major funded activities and infrastructure. 5. The recommended rate structure shall be planned for at least five years. 6. The recommended rate structure, if different from the current structure, shall be easy to administer and understand. Study Elements In making rate structure recommendations, the final report shall explicitly include the following elements and analysis, as well as any other elements generally included or required by industry standard: 1. Assess the current rate structure’s performance as a baseline for comparing recommended changes. 2. Assess the equity of recommended Storm Water rates for all classifications. 3. Assess the ability of the revenue stream generated by each alternative rate structure to fund Storm Water system costs. This element shall include a sensitivity analysis where the long-term revenue generated under each alternative shall be considered against the impacts Page 5 ofof future 8 growth. Page 37 of 43  City of New Richmond P age|5 Storm Water Utility Rate 4. Assess annual operating income, rate of return, and cash flow targets. 5. Assess annual contingency account balances and level of liquidity. 6. Assess performance of each alternative rate structure and provide recommendation of the optimal rate structure. 7. Provide data supporting observations, conclusions, and recommendations. 8. Provide comparative rates for regional and state utility providers. Study Deliverables 1. Conduct a review of existing Storm Water rates in conformance with aforementioned criteria. 2. Present a Preliminary Report: a. Prepare a preliminary study report that includes tentative rate structures. b. Present a preliminary report to staff for comments. c. Present preliminary report to the City Council at a scheduled meeting. 3. Present a Final Report: a. Incorporate changes pursuant to comments received. b. Present the final report and recommended rate structures at scheduled City Council meeting, which may include public hearing. 4. COMMUNICATIONS AND SUBMISSION All questions and electronic submission of the proposal should be directed to: City of New Richmond Rae Ann Ailts, Assistant City Administrator/Finance Director 156 East First Street New Richmond, WI 54017 Phone: (715) 246-4268 railts@newrichmondwi.gov 5. QUALIFICATIONS AND EXPERIENCE OF FIRM The following information is to be submitted as part of the proposal. Other material may be attached as deemed appropriate. 1. A copy of a rate study performed by the applicant in the State of Wisconsin in the last three years. 2. Describe your firm’s qualifications and training for this type of work. Cite specific certifications and/or accreditations. 3. Describe the experience of the firm and of the individuals likely to be assigned to the project. 4. Provide the names of at least three comparable sized Wisconsin municipalities for which the firm has conducted similar rate analyses within the last five years. 5. The proposal must specify a fixed dollar amount for entire project compensation. The proposal must clearly state that compensation will not exceed the fixed amount. 6. The proposal must specify an approximate project timeline through final approval of recommended Page 6 of 8 rate(s) based upon the project milestones listed above. Page 38 of 43  City of New Richmond P age|6 Storm Water Utility Rate 6. REFERENCES 1) Minimum of three (3) references of Wisconsin municipal agencies for related projects of similar size, scope, and complexity located in Wisconsin (if available) indicating the Consultant’s experience with municipalities within the past five years. 2) References should include the following: a) Name, address, and telephone number of the agency b) Time period for the project c) Brief description of the scope of the review d) Recommended procedures e) Reference contact name, email, and telephone number 7. PROPOSAL SELECTION a) EVALUATION CRITERIA: All proposals will be evaluated using the following criteria: • Quality and completeness of proposal • Quality of the proposed services to be provided • Ability and experience of team members assigned to work on the project • Technical experience in performing work of a closely similar nature • Methodology and work program, including knowledge of local needs and the ability to work closely with City staff, the project team, Planning Commission and City Council • Consultant availability, including ability to attend and make presentations at public, committee, and staff-level work meetings • Creativity and insight of proposal • Timing of work program and ability to perform the work within the time specified • Project cost b) EVALUATION PROCEDURE: Evaluation of the proposals will be performed by City staff who will assess the qualifications, experience and ability to perform the work of each consultant based on the criteria listed above. An oral interview with one or more of firms may be requested after written electronic proposals have been received and reviewed by the City. Virtual interviews will be scheduled to take place on August 24, 2022. At the time of the interview, representatives of the consulting firm shall be prepared to clarify and elaborate on the details set forth in the firm’s proposal. The City Council, in its discretion, shall ultimately determine whom to award an agreement, and shall not be obligated to make an award. Page 7 of 8 Page 39 of 43  City of New Richmond P age|7 Storm Water Utility Rate c) SELECTION PROCESS The City will select a respondent on the basis of responsiveness of the proposal to the RFP requirements and willingness to execute an acceptable written contract. The City reserves the right to request written clarification of proposals and supporting materials. Interviews may be conducted with one or more responsible entities that have submitted proposals in order to clarify certain elements. The selection shall be made by a respondent review team and will be recommended to the City Council for final approval. The individual and/or consulting team to be recommended to the City Council will be one whose proposal is determined to be the most advantageous to the City. At the conclusion of the selection process, staff will negotiate the terms and conditions of the contract with the recommended consultant(s). 8. AWARD OF CONTRACT It is the City’s intent to review all respondent qualifications and proposals conscientiously and to select a candidate based upon selection criteria. Should the City believe it would be in the best interest of the City, it may enter into negotiations with any of the Consultants until a contract sum can be finalized with the successful candidate. The City reserves the right to waive any irregularities in any proposal and to select the proposal that is most advantageous to the City. The City and its representatives reserve the right to reject any and all proposals or to request additional information from any respondent or from all respondents. The City is not bound to accept the RFP with the lowest cost, but may accept the RFP proposal that best meets the needs of the City. 9. DISCLOSURE All information contained in any proposal is subject to public disclosure under the provisions of Wisconsin law. Page 8 of 8 Page 40 of 43  MEMO Prepared for: Mayor Zajkowski and City Council Staff Contact: Noah Wiedenfeld Meeting: Special Council Meeting - 20 Jul 2022 Subject: Lease Agreement with Sylvester Custom Grinding and Yard Waste Collection / Disposal BACKGROUND INFORMATION: The City of New Richmond owns the property located at 1935 115th Street, which is used as a compost site. Several years ago, the site was staffed by City employees and open 10 hours per week. Over the past 5-10 years, the hours were extended so the site was open daily from 8 a.m. to 8 p.m. and was no longer staffed or supervised with the exception of a security camera that was installed a couple of years ago. The site was to be used by City residents only - no businesses or non-City residents. Unfortunately, the site was increasingly being used by businesses and non-City residents from neighboring townships and communities (e.g. Hudson, Somerset, Stillwater, Oak Park Heights, etc.) seeking to dispose of yard waste for free. The site had to be closed on several occasions due to dumping of tree stumps, large branches, construction debris, etc. As volume increased, the City began to incur greater costs to grind and dispose of yard waste. City residents were paying to process yard waste from businesses and citizens from surrounding communities who were using a site that was not intended for them and which they did not pay to use. In economics, this is a classic example of a free-rider problem - which represents a market failure - as those who are benefitting from a service are not contributing towards the costs of offering the service. Many of the private companies that contract with suburbs in the Twin Cities have stopped or delayed their yard waste pickup schedules due to staffing issues. When combined with the increased spread of Emerald Ash Border and the corresponding removal of ash trees, and the decision by the St. Paul central heating plant to no longer accept yard waste, the few remaining yard waste disposal sites in the area have becoming increasingly flooded by residents and businesses from Minnesota - even if it means driving a long distance. AGREEMENT WITH SYLVESTER CUSTOM GRINDING Beginning in 2022, the City contracted with a private company - Sylvester Custom Grinding - to staff and manage the site. Sylvester leases the site from the City for a $1 and in exchange, accepts and grinds yard waste from City residents at no charge. Sylvester is not paid by the City of New Richmond, nor do they receive any of the compost and recycling fee paid by residential utility customers. City residents have been able to continue to use the site free of charge with a window decal on their vehicle, and non-City residents and businesses can pay to use the site according to a fee schedule set by Sylvester. CHALLENGES Page 41 of 43 Unfortunately, there have been several challenges during the course of the first few months, including but not limited to: 1) Sylvester's employees have received verbal abuse and lack of cooperation from residents and commercial businesses; 2) Window decals have been removed from vehicles and transferred to non-City residents and businesses; 3) Biodegradable bags collected during the City's curbside pickup times cannot be used in Sylvester's mulch products, so each bag must be opened and disposed of; and 4) Staffing challenges have required the site to be closed, upsetting residents who have made arrangements and gone to the compost site. Sylvester Custom Grinding has given notice to the City of New Richmond that it intends to cease operating the site effective August 1, 2022 and end the lease agreement with the City unless significant changes are made, such as charging everyone who uses the site regardless of whether or not they are a City resident. COMPOST SITES IN OTHER COMMUNITIES Hudson, Somerset, and Stillwater do not have public compost sites. Baldwin, River Falls, and Altoona have compost sites with limited hours (3 to 12 hours per week) which are staffed and can only be used by residents with proof of residency - typically a utility bill and photo ID. OTHER YARD WASTE COLLECTION/DISPOSAL SERVICES Curbside pickup of yard waste is also becoming an increasingly rare public service; River Falls, Hudson, Baldwin, and Altoona do not offer any curbside pickup. Stillwater offers this service but utilizes a private company rather than City employees. New Richmond and Somerset (considerably smaller in population) still offer curbside pickup of bagged leaves and branches using their Public Works employees. In New Richmond, this service most recently represented 200+ hours of staff time when combining the spring and fall pickup times and a cost of over $11,000 between compensation and equipment use, and is likely to increase as the community grows in population and new neighborhoods are added. In communities where curbside pickup is not offered, residents may contract directly with their refuse/recycling hauler or a landscape business may dispose of the material and passes this cost on to the customer. Of the communities contacted, only New Richmond uses their Public Works Department to offer curbside pickup of Christmas trees and Somerset actually uses their Fire Department. River Falls and Stillwater contract with a private company, and neither Hudson nor Baldwin provide this service. Altoona residents may bring their Christmas tree to a designated site one day only in January, and may dispose of their tree if they provide proof of residency. Most recently, the City's Public Works Department spent 48 hours picking up Christmas trees at a cost of $4,015. There has been discussion in years past by the Public Works Committee about whether these services should continue to be offered, but no action has been taken. While these services might seem like a separate issue from the compost site, it's important to look at yard waste collection and disposal services holistically as together they make up the services that are provided through the $6 per year compost and recycling fee that is paid by residential utility customers. FINANCIAL IMPACT: City residents pay a $6 per year compost and yard waste fee on their utility bill. This fee is used to cover costs for spring and fall curbside pick up of bagged leaves and branches by the Public Works Department, grinding and removal of yard waste from the compost site, and curbside pickup of Christmas trees. For comparison, River Falls residents pay $15/year. If Sylvester Custom Grinding no longer operates the compost site, the City of New Richmond cannot go back to having the compost site open daily without supervision unless the compost and recycling fee is increased, and/or the other existing yard waste collection services are reduced, as the Page 2 of 3 Page 42 of 43 expenses will exceed the revenue that is collected through the compost and recycling fee. If the City pays an employee to supervise the compost site with limited hours, there will be an increased cost for employee compensation but the cost for grinding and disposing of material might be substantially less from previous years if the City residency requirement is enforced (and thus the volume of material is reduced). POLICY IMPLICATIONS: The City Council should consider the following questions: 1) What services should be offered to the residents of the City of New Richmond when it comes to yard waste collection and disposal? 2) Should these services be offered by the local unit of government and/or the private sector? 3) How should yard waste collection / disposal services be paid for? Who should pay? 4) Are there changes that can be made to the existing lease agreement between the City of New Richmond and Sylvester Custom Grinding that would reduce the challenges experienced at the compost site? 5) If Sylvester Custom Grinding no longer operates the compost site effective August 1, 2022, what is the plan for the compost site and yard waste collection/disposal in the short-term and long-term? RECOMMENDATION: This item of business was discussed last week by the Public Works Committee; there was no clear consensus as to how best to proceed. City staff will present a few possible options for discussion based on feedback received thus far. Steve Sylvester has been invited to attend the meeting and will also be available to answer questions and discuss possible alternatives. Page 3 of 3 Page 43 of 43