City Council Worksession

South St. Paul MAYOR/COUNCIL WORKSESSION SSP City Hall 125 3rd Avenue North Training room Monday, March 25, 2019 7:00 p.m. AGENDA: 1. Debt financing for 2018 street and utility projects and SMFD purchase of Fire Engines. (Brian Reilly from Ehlers will be present) 2. South St. Paul Youth Hockey Association Long Term Ice Draft Agreement Discussion (SSPYHA President Dave Simons will be present) 3. Frozen Utility Line Policy Discussion 4. Update on AE2S Communication Consulting Services 5. Update on Library – No Attachment 6. Council Comments/Questions A COUNCIL WORKSESSION REPORT DATE: March 25, 2019 1 DEPARTMENT: Finance ADMINISTRATOR: JRH AGENDA ITEM: Preliminary Debt Issuance and levy impact DESIRED MEETING OUTCOMES:  Review and discuss preliminary debt projects and levy impacts for 2019 bond issue for street projects and capital equipment notes OVERVIEW: In 2017, the Council agreed that issuing debt was in the best interests of the city for financing needed infrastructure and equipment. During past budget discussions, we have noted that bonding would be a funding mechanism for the various street improvement projects to finance the capital programs and special assessment share of these projects. Based on analysis of our utility funds and the need to address infrastructure replacement, we are also recommending issuance of debt for the utility fund portion of street improvement projects. The attached schedule (2019 Bond Projects) details the projects proposed to be included in this bond issue. Attached are two different alternatives for the Utility funds – one without debt issuance and one with debt. Debt issuance is the preferred method of funding the infrastructure replacement to enable smoother increases in utility rates for repayment of the debt while also ensuring we keep moving forward with infrastructure upgrades. Without the issuance of debt, we would need to significantly curtail infrastructure upgrades. We are also proposing to address South Metro Fire Department’s (SMFD) need to replace two fire engines. The last time this occurred, the Housing & Redevelopment Authority issued the bonds. To minimize the costs of issuing debt, the City has included the funding for these engines in this bonding package as equipment notes. The debt service on the equipment notes is repaid by SMFD through a charge back to South St. Paul and West St. Paul. Each city can levy their individual portions under the debt levy and the amounts payable by each city should be reasonable close to recent debt payments associated with past apparatus purchases given that debt is being retired this year. South St. Paul’s share has been around $91,000 and is projected to increase by about $10,000 a year. Staff has discussed various strategies for timing and structure of the debt issuance with Brian Reilly and Steve Apfelbacher from Ehlers and Associates, the City’s municipal advisors. Tax levy impacts and structuring debt payments to smooth bumps in the overall debt levy while leaving flexibility for future debt issuance were examined. Brian will be at the worksession to present the proposed bond structure as outlined in the attached draft of the pre-sale report. Subject to Council direction, staff will be recommending adoption of a Resolution providing for the sale $7,235,000 of General Obligation Bonds, Series 2019A at our April 1, 2019 Council meeting. (A draft copy of that resolution is included in the Presale Report.) SOURCE OF FUNDS: N/A  Sources of Funding For Projects/Equipment PROJECTS FOR 2019 BONDING Totals Assessments Water Fund Sewer Fund Storm Fund WSP Tax Levy 2018 Street Projects (Southview/Maywood‐Deerwood/15th Ave) 3,530,671 481,709 893,800 0 430,000 1,725,162 Utility Project UPRR sewer relocation 2,000,000 2,000,000 0 Street/Utility Projects 5,530,671 481,709 893,800 2,000,000 430,000 1,725,162 SMFD Fire Engines 1,500,000 1,250,000 1,250,000 Total 2019 Bonding Costs 7,030,671 481,709 893,800 2,000,000 430,000 1,250,000 2,975,162 Deferred to 2020 Bond Issue 2019 Street Projects 5th Ave South 3,813,600 765,600 1,425,600 0 721,000 901,400 Utility Fund Analysis - with Potential Future Bond Proceeds WATER SEWER STORM ST LIGHTS CASH - 12/31/17 3,608,780 540,660 979,210 71,927 Revenues - 2018 2,107,616 4,245,050 476,201 252,677 Expenses - 2018 -1,762,804 -3,246,892 -913,281 -223,600 Capital Expenses -675,000 -3,891,843 -126,576 est 12/31/18 cash 3,278,592 -2,353,025 415,554 101,004 2019 revenues 2,203,200 3,804,900 508,600 274,005 2019 expenses -2,126,810 -3,275,921 -364,498 -270,029 2019 capital -1,498,750 -800,116 -1,016,733 2019 bond proceeds 893,800 1,917,947 430,000 est 12/31/19 cash 2,750,032 -706,215 -27,077 104,980 2020 revenues 2,378,800 4,109,300 548,400 294,300 2020 expenses -2,190,614 -3,499,849 -550,430 -277,530 2020 capital -2,095,000 -366,800 -645,000 -300,000 2020 bond proceeds 1,000,000 3,000,000 est 12/31/20 cash 1,843,218 242,651 2,352,970 -283,230 2021 revenues 2,568,400 4,438,000 591,500 316,200 2021 expenses -2,256,333 -3,821,844 -768,800 -285,250 2021 capital -3,815,000 -976,400 -2,035,970 -300,000 2021 bond proceeds 3,500,000 1,000,000 300,000 est 12/31/21 cash 1,840,285 -117,593 1,139,700 -252,280 2022 revenues 2,773,300 4,793,000 638,000 339,900 2022 expenses -2,324,023 -4,153,499 -783,300 -293,200 2022 capital -2,791,000 -188,700 -592,343 2022 bond proceeds 2,500,000 1,000,000 est 12/31/22 cash 1,998,562 333,208 1,402,057 -205,580 2023 revenues 2,994,500 5,176,500 688,300 365,500 2023 expenses -2,393,743 -4,578,104 -856,655 -301,410 2023 capital -1,921,000 -513,125 -197,042 2023 bond proceeds est 12/31/23 cash 678,319 418,478 1,036,660 -141,490 Utility Fund Analysis - with 2019 Bond Proceeds Only WATER SEWER STORM ST LIGHTS CASH - 12/31/17 3,608,780 540,660 979,210 71,927 Revenues - 2018 2,107,616 4,245,050 476,201 252,677 Expenses - 2018 -1,762,804 -3,246,892 -913,281 -223,600 Capital Expenses -675,000 -3,891,843 -126,576 est 12/31/18 cash 3,278,592 -2,353,025 415,554 101,004 2019 revenues 2,203,200 3,804,900 508,600 274,005 2019 expenses -2,126,810 -3,275,921 -364,498 -270,029 2019 capital -1,498,750 -800,116 -1,016,733 2019 bond proceeds 893,800 1,917,947 430,000 est 12/31/19 cash 2,750,032 -706,215 -27,077 104,980 2020 revenues 2,378,800 4,109,300 548,400 294,300 2020 expenses -2,190,614 -3,499,849 -550,430 -277,530 2020 capital -2,095,000 -366,800 -645,000 -300,000 est 12/31/20 cash 843,218 242,651 -647,030 -283,230 2021 revenues 2,568,400 4,438,000 591,500 316,200 2021 expenses -2,256,333 -3,821,844 -768,800 -285,250 2021 capital -3,815,000 -976,400 -2,035,970 -300,000 est 12/31/21 cash -2,659,715 -117,593 -2,860,300 -552,280 2022 revenues 2,773,300 4,793,000 638,000 339,900 2022 expenses -2,324,023 -4,153,499 -783,300 -293,200 2022 capital -2,791,000 -188,700 -592,343 est 12/31/22 cash -5,001,438 333,208 -3,597,943 -505,580 2023 revenues 2,994,500 5,176,500 688,300 365,500 2023 expenses -2,393,743 -4,578,104 -856,655 -301,410 2023 capital -1,921,000 -513,125 -197,042 est 12/31/23 cash -6,321,681 418,478 -3,963,340 -441,490     0DUFK  3UH6DOH5HSRUWIRU  &LW\RI6RXWK6W3DXO0LQQHVRWD  *HQHUDO2EOLJDWLRQ%RQGV6HULHV$       3UHSDUHGE\  6WHYH$SIHOEDFKHU&,30$ 6HQLRU0XQLFLSDO$GYLVRU  $QG  %ULDQ5HLOO\&,30$ 6HQLRU0XQLFLSDO$GYLVRU    ([HFXWLYH6XPPDU\RI3URSRVHG'HEW  3URSRVHG,VVXH *HQHUDO2EOLJDWLRQ%RQGV6HULHV$ WKH³%RQGV´  3XUSRVHV 7KHSURSRVHGLVVXHLQFOXGHVILQDQFLQJIRUWKHIROORZLQJSXUSRVHV 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                                                                                                                                                                                                                                                                                   7RWDO              6LJQLILFDQW'DWHV  'DWHG  )LUVW&RXSRQ'DWH   <LHOG6WDWLVWLFV  %RQG<HDU'ROODUV  $YHUDJH/LIH <HDUV $YHUDJH&RXSRQ   1HW,QWHUHVW&RVW 1,&  7UXH,QWHUHVW&RVW 7,&  %RQG<LHOGIRU$UELWUDJH3XUSRVHV  $OO,QFOXVLYH&RVW $,&   6HULHV*2%RQGV%4_,VVXH6XPPDU\__$0     COUNCIL WORKSESSION REPORT A DATE: Tuesday, March 25, 2019 2 DEPARTMENT: ADMINISTRATION ADMINISTRATOR: JRH AGENDA ITEM: Draft Agreement with South St. Paul Youth Hockey Association for Ice Sales at Woog Arena DESIRED MEETING OUTCOMES: Review, discuss, and provide direction on draft contract with South St. Paul Youth Hockey Association (SSPYHA) for Ice Time at Woog Arena. OVERVIEW: At the February 25th worksession, Staff brought forward two different proposals; one from SSPYHA and one from Woodbury Area Hockey Club (WAHC). After some initial discussion, staff was directed to meet with representatives of each group and South St. Paul Special School District #6 in an attempt to develop an outcome that would satisfy the needs of our primary users and the city. At this secondary meeting, it was discovered that the school district would be changing the start time for secondary students beginning with the 2020/21 school year. The later start time would mean that high school practices would need to start later thereby reducing the amount of weekday primetime ice hours available for sale. As a result, staff recognized that the proposed agreement with WAHC club for 800 hours of ice time (400 during weeknights) was not feasible in terms of leaving enough prime-time, weeknight ice time for SSPYHA. In order to secure stable, long term ice sales, staff recommends moving forward with the SSPYHA proposal. The SSPYHA proposal involves a ten-year agreement for the City to sell to them 1,500 hundred hours of primetime on an annual basis from October through March. SSPYHA has indicated that they intend to use about 650 hours themselves and then sublease the remaining hours to other area associations. With this agreement, they would receive a $10 per hour discount on the prime-time ice rates ($210 to $200 per hour for the 2019/20 season). They would also contribute $25,000 for Arena capital costs on an annual basis for use of the Dry-Ice facility. Current Dry-Ice lease income of $15,102 per year would cease. In addition to the SSPYHA agreement, staff recommends entering into a ten-year agreement with WAHC for the sale of four hundred hours of primetime ice annually. The rental rate would be at standard rates ($210 per hour in the 2019/20 season). However, we would credit SSPYHA $10 per hour for the hours rented pursuant to this agreement and also give them a credit of 400 hours toward their 1,500 hour commitment. In addition to the two aforementioned proposals, we will continue the long-standing relationship with SSP Public Schools and sell them approximately five hundred hours annually. This amount may be adjusted in the 2020/21 season to accommodate the impacts associated with the change in school day times. We may also have a tentative agreement on how ice-time will be allocated between SSPYHA, WAHC, and one other major user. If we are successful in agreeing on the allocation program, we would propose adding language to our major user agreements to define that process going forward. For quick reference, the financial impact of this arrangement, as proposed is as follows: Proposed Base Hours: 1,500 hours/year Hourly Rate Received: $200/hour Annual Revenue Summary: $300,000 (1,500 hrs. x $200) Annual Capital Payment: $25,000 Off Ice Revenue Reduction -$15,000 Other Rental Income: SSP HS $105,000 (500 hrs. x $210) Base Financial Impact $415,000 For 2018/2019, it is estimated we sold about 1,675 hours of ice time @$195 per hour for a total of $326,625 (+88,375). That includes additional ice time sold since 1/1/19 of approximately 75 hours. For comparative purposes, we budgeted $400,000 in revenue from Fall/Winter ice sales the past couple of years. Under this concept, we would still have about 50 hours of ice time to sell. If we achieve that, we would add another $10,500 to the total. The additional revenue generated by these agreements coupled with other expense reductions will make a dramatic impact on our deficit reduction goal. A big concern with this arrangement deals with the likelihood of success for SSPYHA and the City. Based on initial discussions, here is a look at the commitments for ice time: SSP HS ……………… 500 Hours SSPYHA ……………. 650 Hours WAHC ……………… 400 Hours Other Major User …… 500 Hours Total 2,050 Hours The sale of 2,050 hours is our target goal of prime ice time! SOURCE OF FUNDS: N/A  AGREEMENT BETWEEN THE CITY OF SOUTH ST. PAUL AND THE SOUTH ST. PAUL YOUTH HOCKEY ASSOCIATION FOR ICE TIME AT DOUG WOOG ARENA THIS ICE RINK USAGE AGREEMENT, (“Agreement”) is made and entered into as of the _____ day of April 2019, by and between the City of South St. Paul (“City”), a Minnesota municipal corporation, and the South St. Paul Youth Hockey Association (“SSPYHA”), a Minnesota nonprofit corporation (each sometimes hereinafter called “party,” and both sometimes collectively called “parties”). WITNESSETH: WHEREAS, the City owns and operates an ice arena known as Doug Woog Arena (“Doug Woog Arena”), which has two sheets of ice, identified as Rink #1 and Rink #2; and WHEREAS, the City and SSPYHA desire to enter into a long-term agreement whereby SPPYHA secures guaranteed ice time for its programs at Doug Woog Arena, and the City is able to rely on the sale of a minimum number of hours of ice time during the winter hockey season as well as an ongoing revenue stream to assist with funding its Capital Improvement Program (“CIP”) at Doug Woog Arena; WHEREAS, the parties acknowledge that SSPYHA has historically purchased ice time from the City during and outside of the Peak Ice Time (as defined below) of each winter hockey season and both parties acknowledge that this Agreement does not intend to in any way include those ice time purchases outside of the Peak Ice Time. It is the intent of both parties that they will continue their historical course of dealing for ice time purchases outside of the Peak Ice Times, which is after March 15th 31st and prior to October September 1st of any hockey season. Formatted: Superscript NOW, THEREFORE, in consideration of above recitals, and the mutual promises and covenants of each to the other contained in this Agreement and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows: ARTICLE 1 THE AGREEMENT A. Purposes. The purpose of this Agreement is to define the rights and obligations of City and SSPYHA with respect to the availability of Peak Ice Time on Rink #1 and Rink #2 at Doug Woog Arena during each winter hockey season from October September 1 of a calendar year through March 3115 of the following calendar year for the term of this Agreement. B. Cooperation. City and SSPYHA shall cooperate and use their best efforts to ensure the most expeditious implementation of the various provisions of this Agreement. The parties agree in good faith to undertake resolution of disputes, if any, in an equitable and timely manner. C. Term. The Initial Term of this Agreement shall commence on the date first written above 1  and shall terminate on April 1, 2029 (the “Initial Term”), unless terminated by either party after the applicable notice period pursuant to Article 1.D. D. Termination. Either party may terminate this agreement by providing at least one year’s written notice to the other party, which shall be given no later than October 1 of the year prior to the effective date of termination. ARTICLE 2 DOUG WOOG ARENA ICE RINK FACILITY USE A. Facility Administration. City shall be responsible for the operation, administration, and maintenance of Doug Woog Arena (including Rink #1, Rink #2, and the common area) during the Initial Term of this Agreement. B. Time Rental Rates. City customarily establishes annual uniform ice time rental rates in December of the preceding year that are reflected in City’s Fee Schedule and which shall be applicable to SSPYHA of the Ice Time availability provided to SSPYHA pursuant to this Agreement. Ice time rental rates during Peak Ice Times, which is October September 1 through March 3115 of the following year, defined as the winter hockey season, during the term of this Agreement shall be: 2019-21: $200/hour 2021-23: $205/hour** 2023-25: $210/hour** 2025-27: $215/hour** 2027-29: $220/hour** **The above referenced price increases shall be market-validated with comparitive increases at similar regional ice arenas. City shall not raise ice time rental rates greater than the similar regional ice arenas’ price increases. Commented [MA1]: Language needs to be cleaned up for legal purposes SSPYHA shall promptly pay City the ice time invoices billed by City; and, in all events, ice time invoices shall be paid within forty (40) days following receipt by SSPYHA of ice time invoices. City and SSPYHA acknowledge and agree that all ice rate revenue shall be paid to City and used by City for the operation and maintenance of Doug Woog Arena, including but not limited to Rink #1 and Rink #2. C. Peak Ice Time Availability. The parties agree as follows with respect to Peak Ice Time availability, between October September 1st and March 31st 15th of a winter hockey season Formatted: Superscript (“Peak Ice Time”): (1) 1,500 Hours of Ice Time Availability: For the Initial Term beginning on October 1, 2019, City agrees to make 1,500 hours available on Rink #1 and Rink #2 each year for reservation to support SSPYHA ice recreational programs during the Peak Ice Time as follows: 2  (a) on Monday through Friday from 5:10 p.m. to 9:40 p.m., and (b) on Saturdays and Sundays from 7:00 a.m. to 9:00 p.m. SSPYHA will be allowed to sell any of the 1,500 rented ice time hours to other customers. SSPYHA will work with City Staff, and shall provide City with schedules for the 1,500 hours of Ice Time reservations for the usage hours set forth in Article 2.C.(1) above. City wishes to sell at least 400 rented ice time hours to the Woodbury Hockey Association (WHA). For each hour of rented ice time sold to WHA, SSPYHA shall receive a credit of $10. In addition, for each hour of rented ice time sold to WHA, SSPYHA’s commitment of 1,500 rented ice time hours shall be reduced by an hour. (2) Youth Hockey Tournaments: The City retains the right to schedule the following hockey tournaments on Rink #1 and #2: (a) A holiday high school hockey tournament hosted by the programs of the South St. Paul High School Boys and Girls Programs during late December (or early January if necessary) of each year during the traditional school break period. With respect to South St. Paul High School tournaments listed in (a) of this paragraph the following requirements will apply for usage on Rink #1 and Rink #2: (i) Tournaments will be allowed to schedule four two-hour games on six days during the traditional school break period. This will allow for tournament games on Rink #1 and Rink #2 which should cover the traditional tournament sizes. (ii) SSPYHA retains the first right to buy ice time on Rink #1 and Rink #2 before and after any high school tournament games scheduled for Rink #1 and Rink #2 in accordance with (2)(a)(i). (3) SSPYHA to Provide Schedule of the 1,500 Hours of Ice Time Reservations to City by August 1 of Each Year: On or before August 1 of each year, SSPYHA shall review and use the schedule of Ice Time availability provided by City, work with City Staff, and shall provide City with SSPYHA’s schedule for a minimum of 1,500 hours of Ice Time reservations for the usage hours set forth in Article 2.C.(1) above. SSPYHA must reserve and pay for at least 1,500 hours annually, whether used by SSPYHA or not. (4) SSPYHA Return of Peak Ice Time Availability: (a) City agrees that SSPYHA may return any hours of Peak Ice Time on Rink #1 or #2 by August 1 each year after fulfilling the annual 1,500-hour minimum requirement. The City shall be allowed to lease any hours returned by SSPYHA to other users, at 3  City’s discretion. (b) City agrees that SSPYHA shall also be allowed to return scheduled ice time after August 1 each year as long as SSPYHA provides 30 days’ written notice to the City prior to the date of the scheduled ice time, and provided however, that at no point will SSPYHA’s committed ice buy fall below the 1,500-hour requirement of Article 2.C.(3). D. Rental of Dryland Space. City currently leases off-ice dryland space in Doug Woog Arena as an off-ice training facility (“Dryland Space”) pursuant to a lease agreement with SSPYHA. City agrees to include lease cost of Dryland Space with SSPYHA in the total Off-ice Training Facility Contribution set forth in Article 2.F. E. Advertising. City agrees that SSPYHA will be allowed the opportunity to purchase advertising space to re-sell to advertisers. Each advertising space SSPYHA is allowed shall Commented [GE2]: This needs to be at a fee of $400.00 be 33” x 96”at a fee of $2 400 per space per year, or as updated in the Doug Woog Arena Advertising Policy, and is payable directly to the City. The advertising fees will only be adjusted after consulting with SSPHYA by April 1 of each year and such increase will not take effect until October 1 for the year in which the increase is made. SSPYHA will be allowed to re-sell the advertising space at a cost determined by SSPYHA to advertisers. SSPYHA will subsequently work in coordination with City Staff regarding the ordering, delivery, and installation of any advertising sold by SSPYHA. Advertisers must meet the Doug Woog Arena Advertising Policy, which will be provided to SSPYHA as of the date of this Agreement and as amended. F. Off-ice Training Facility Contribution: SSPYHA shall make an annual contribution payment of $25,000 (“Annual Dryland Space Payment”) to the City. The Annual Dryland Space Payment is due by October 1 of each year for the Initial Term or any Extended Term of this Agreement. The Annual Dryland Space Payment shall be deposited into a fund dedicated and used by the City for capital improvement projects and on-going operational expenses at Doug Woog Arena, as identified in the City’s adopted CIP and the Doug Woog Arena operation budget. ARTICLE 3 REMEDIES If a party fails to perform one or more of its obligations under this Agreement, the non-defaulting party shall give the defaulting party written notice at the address set forth in this Agreement of the defaulting party’s failure to perform such obligations, and if the defaulting party fails to commence to perform the obligation within fifteen (15) business days and diligently pursue, to completion, the performance of the obligation as quickly as reasonably possible, the defaulting party is in default under this Agreement (hereinafter a “Default”). Upon the occurrence of a Default, the non- defaulting party may avail itself of the following remedies after written notice and a reasonable opportunity to cure: 4  A. The non-defaulting party may commence a civil action against the defaulting party for the specific enforcement of this Agreement; B. The non-defaulting party may initiate a civil action against the defaulting party seeking damages, equitable relief or such other relief as the Court may deem appropriate; The defaulting party must pay the non-defaulting party for any and all reasonable costs, including reasonable attorneys’ fees and court costs, the non-defaulting party incurs in connection with the non-defaulting party’s exercise of its rights under this Section. ARTICLE 4 GENERAL PROVISIONS A. Notices. All notices or communications required or permitted pursuant to this Agreement shall be either hand delivered or mailed to City and SSPYHA, certified mail, return-receipt requested, as the following address: City: City Administrator South St. Paul City Hall 125 3rd Avenue North South St. Paul, MN 55075 SSPYHA: South St. Paul Youth Hockey Association 141 6th Street East, Suite 1 South St. Paul, MN 55075 Attention: President Either party may change its address or authorized representative by written notice delivered to the other party pursuant to this section. B. Non-Assignability. Neither party shall assign an interest in this Agreement nor shall transfer any interest in the same, whether by subcontract, assignment or novation, without the prior written consent of the other party. C. Amendment. Any alteration, amendment, variation, modification or waiver of the provisions of the Agreement shall be valid only after it has been reduced to writing and signed by all parties. D. Waiver. The waiver of any of the rights and/or remedies arising under the terms of this Agreement on any one occasion by any party hereto shall not constitute a waiver or any rights and/or remedies in respect to any subsequent breach or default of the terms of this Agreement. The rights and remedies provided or referred to under the terms of this Agreement are cumulative and not mutually exclusive. 5 E. Severability. The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause or phrase of this Agreement is for any reason held to be contrary to law, or contrary to any rule or regulation having the force and effect of law, such decision shall not affect the remaining portions of this Agreement. F. Interpretation According to Minnesota Law. This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. G. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and shall supersede all prior oral or written negotiations. H. Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their permitted assigns, and nothing in this Agreement, express or implied, is intended to confer upon any other person any rights or remedies of any nature under or by reason of this Agreement. I. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original document and together shall constitute one instrument. J. Captions and Headings. Captions and headings used in the Agreement are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope of the intent of this Agreement. K. Electronic Signatures. The parties agree that the electronic signature of a party to this Agreement shall be as valid as an original signature of such party and shall be effective to bind such party to this Agreement. For purposes hereof, “electronic signature” means a manually signed original signature that is then transmitted by electronic means and “transmitted by electronic means” means that it is sent in the form of a facsimile or sent via the internet as a portable document format (“pdf”) or other replicating image attached to an electronic mail or internet message. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 6 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above written. CITY OF SOUTH ST. PAUL By: James P. Francis Mayor Attest: By: Christy Wilcox City Clerk 7 SOUTH ST. PAUL YOUTH HOCKEY ASSOCIATION By: Dave Simons President By: Michael Ahern Treasurer 8 2019-2020 WAHC Ice Usage Contract at Doug Woog Arena Prepared by: Aaron Etshokin (WAHC Ice Scheduler) Reviewed by: Ben Johnson (WAHC Treasurer), Lonie Nelson (WAHC Administrator) Delivered to: Chris Esser (South St. Paul Director of Parks and Recreation), George Emerson (Doug Woog Assistant Arena Manager) Copied to: Joel Hanson (South St. Paul City Administrator) Delivery Date: 2/28/2019 Mr. Esser and Mr. Emerson, The Woodbury Area Hockey Club (WAHC) has been a significant customer at Doug Woog Arena for the past six winter seasons and would like to continue our relationship with the City of South St. Paul going forward. Our organization values the ice time and service you’ve provided, and I hope you similarly view us as good customers/partners. In order to bring certainty to our ice situation for the upcoming 2019-2020 season, we are prepared to begin discussions around a renewal to the arrangement we’ve had the prior six winter seasons as the third priority arena customer (after Special School District No. 6 and South St. Paul Youth Hockey Association) for the 2019-2020 winter season. Given recent developments and conversations on the 800 hour first priority usage agreement, we believe it’s in the best interests of both WAHC and the City of South St. Paul to develop and implement an ice usage contract for the 2019-2020 winter season for our continued third priority usage. The below represents a summary of our traditional ice purchase at Doug Woog Arena for the past six seasons: • Winter Season: 10/1 – 2/28, roughly 21 weeks • Total Winter Season Hours: 400 • Weekday Hours (Monday through Friday): 200-250 hours o 10-12 hours each week ▪ Monday: 1-2 hour ▪ Tuesday: 1-2 hour ▪ Wednesday: 5 hours ▪ Thursday: 1-2 hour ▪ Friday: 2 hours • Weekend Hours (Saturday, Sunday): 150-200 hours o Distribution of weekend hours varies mostly depending on WAHC tournament scheduling and there are generally hours available most weekends at Woog Arena. The above represents our specific minimum interest for ice time for the 2019-2020 winter season, and I am personally available at any point to begin working through a contract for the 2019-2020 season and accelerating the traditional summer timeline for firming up ice commitments at Doug Woog Arena should that assist City Staff with selling and marketing ice time for next season. We would prefer to begin working on this sooner rather than later, given the various timelines and constraints in play for all parties. Thank you for your time consideration. Respectfully, Aaron Etshokin WAHC Ice Scheduler 952-457-8030 A COUNCIL WORKSESSION REPORT DATE: March 25, 2019 3 DEPARTMENT: Finance ADMINISTRATOR: JRH AGENDA ITEM: Frozen Utility Line Policy Discussion DESIRED MEETING OUTCOMES: • Review and discuss past practices regarding frozen utility line credits OVERVIEW: Individual property owners are responsible for the maintenance and repair of the lateral line connections to the community water supply system. When a line is frozen, a large bill maybe incurred to thaw the line and/or repair the line. One method for avoiding these costs has been to allow a steady thread of water to run from the faucet – a stream equivalent to a tip of a pencil is sufficient to prevent freeze-ups. In the course of a month, this flow would typically amount to 3,600 gallons of water, per the attached schedule. In addition, this water consumption becomes part of the measure used for calculating year-round sanitary sewer bills. During the winter of 2013-14, the frost line descended to more than seven feet and a number of freeze-ups were experienced. At the February 24, 2014 worksession, discussion occurred regarding the past practice where City staff had granted a credit up to 2,000 gallons of water/sewer usage. It was determined to give a credit of up to $20 for the excess water used for frozen water lines. We also adjusted the winter average value (WAV), which sets the sewer cap for the remaining three quarters of the year. A total of 341 accounts notified us that they ran water to avoid frozen pipes. We then calculated usage on each account to determine what increase, if any, occurred in the water usage. 33% or 111 of these accounts did not receive a credit because their water usage was the same or less than the prior year’s winter quarter. 75 or 22% of these accounts qualified for the full $20 credit. City code section 62-56 was modified to create a panel (city engineer, public works director and finance director) to review and determine whether adjustments to water bills are warranted, without prior council approval. Section (d) (1) b. specifically identifies water line freeze – where the city advised the consumer to leave a drip running during the period of time covered by the water bill. (See copy of ordinance attached.) Staff recommends we should make revisions to this ordinance to ensure consistency in applying adjustments. We are not recommending any relief in the water charge because by running water, a homeowner is taking steps to avoid higher costs associated with unthawing a line or repairs associated with a frozen line that ruptures. We do believe that adjusting the WAV related to future sewer charges would be reasonable given sewer costs are based on winter quarter water usage and higher winter usage to prevent a freeze-up should not carry through to the other three quarters of sewer usage. This recommendation is similar to the language in 62-56 (d) (1) (c). Staff also believes we should clarify this ordinance to state “…. line freeze and the city advised specific consumers to leave a drip running during the period of time covered by the water bill. A general statement to all consumers to consider leaving a drip running to prevent freeze-ups would not meet this criteria.” Again, running water as a precaution to avoid further problems and expenses is an inexpensive insurance. So far this year we have only heard from seven accounts and staff has been informing customers that we do not give a credit but would note it on their account. The residents have been fine with that decision. The Finance Director and Public Works Director recommend that we not issue a credit for water used to avoid frozen pipes. The amount of water used is significantly lower than the costs associated with thawing pipes or dealing with the damage incurred by burst water pipes. Residents can still dispute their bills as identified in the code – section 62-56 (b) – requests for an adjustment must be made in writing within 14 days of the date the water bill was sent, addressed to the finance director – either through mail or via email to finance@sspmn.org. The committee has received requests for adjustments when people have experienced a leak/malfunction which resulted in large water usage – specifically in the winter quarter when they are charged the full sewer amount based on the water used. SOURCE OF FUNDS: N/A Sec. 62-56. - Adjustments to utility bills. (a) Policy and purpose. It is the policy of the city of South St. Paul to make adjustments to consumer water bills where an adjustment is necessary to correct mistakes, equipment failures, or fairly apply the rates and rules. The purpose of this policy is to improve consumer service by enabling city staff to quickly and accurately respond to consumer requests for adjustments to water bills. (b) Requests for adjustments. When a consumer disputes a water bill, the consumer may request an adjustment for one of the reasons set forth in section 62-56(d). All requests for adjustments must be made in writing within 14 days of the date the water bill was sent, addressed to the finance director. Written requests shall state the name of the account holder, service address, contact information and the reason for the requested adjustment. The consumer shall further provide all information requested by the panel deemed necessary to make a determination on the request. (c) The panel . A panel made up of the city engineer, public works director, and finance director, their designees, or members appointed by the city administrator, shall determine the amount, if any, of the adjustment to be made. (d) Adjustments allowed. (1) The panel is authorized to make adjustments to water bills, without prior city council action, for the following situations: a. Billing error. Where an error has occurred that results in an inaccurate water bill being sent to a consumer, staff shall correct the error as soon as discovered, whether by the consumer or by staff. These adjustments include data recording and entry errors as well as meter failures if tested and found to be inaccurate. b. Water line freeze. Adjustments to charges when a consumer experiences extraordinary water consumption during a billing period following a water line freeze and the city advised the consumer to leave a drip running during the period of time covered by the water bill. c. Water break or malfunction. If the panel is shown evidence that the consumer made a good faith effort to address a break or malfunction in a timely manner, then the rate may be adjusted to a lower tier for the billing cycle in question and the winter quarter average may be re-established to a rate based on usage history. (2) After an adjustment is made by the panel, the bill is due and payable within 14 days of the panel's decision. (e) Adjustments not allowed. The panel will not consider adjustments when a consumer experiences extraordinary water consumption due to a break or malfunction and the consumer has not made a good faith effort to address the break or malfunction in a timely manner or when the appeal is untimely. (f) Response. The panel shall respond in writing to the request for an adjustment within 20 days after receiving all the information necessary to make a determination on the request. (g) Appeal from the decision of the panel . If the consumer is not satisfied with the decision of the panel, the consumer may appeal in writing by following the process provided in city code sections 38-107—38-109.  City Council Worksession Report Date: March 25, 2019 4 Department: Administration Administrator: JRH Agenda Item: Communications Strategy Desired Meeting Outcomes: Update City Council on communication strategies planned for 2019. Overview: The City Council approved an agreement with AE2S Communications for Communication Consulting Support Services at the December 17, 2018 council meeting. Below is an update of communication strategies for 2019. 1) January 4, 2019 – Shelly Anderson and Sandy Haima met with Andrea Boe and Nicole Gaustad from AE2S to discuss priorities for 2019. Some of the priorities included: • South St. Paul brand consistency – meaning consistency in all communications (letterhead, business cards, memos, email signatures, etc.). Brand consistency also includes utilizing the same fonts and colors for communications. • AE2S developed letterhead and logo revisions for review and comment. They advised against a total logo “redo” because that will be very time consuming and costly when you factor in replacement of signage around the city. Instead, they have recommend refreshing the look of the logo and incorporate the refreshed logo onto letterhead, social media and electronic communications. By refreshing the look of the logo, the logo itself does not change and therefore City signage would not have to be replaced. 2) Week of February 25, 2019 – AE2S met with departments (Engineering/Public Works, Community Development, Library, Community Affairs) to discuss key projects/events in 2019 and how they could assist with communication efforts. AE2S will develop a schedule of key communications based on project/event schedules. 3) Social Media continues to be an important tool in the communication toolbox for the City. Staff will discuss AE2S initial thoughts and strategies. 4) City News – the City publishes a City Newsletter that is mailed to residents of the community on a quarterly basis. AE2S feels this is a valuable information source and will make recommendations for a digital version in order to increase readership and capture analytics. 5) Crisis Communication – On April 17, AE2S will be conducting a Crisis Communication training with all departments. This training is not geared towards major emergency/disaster events which are handled by our Emergency Operations Plan. Rather the training will focus on lower level crisis situations and how to communicate quickly and effectively (i.e., water quality issues, engineering projects, public works situations, etc.). 6) Community Survey – AE2S will be working on a community survey to gauge city communication mediums. AE2S will also assist in the Community Engagement process regarding the Library. Staff will continue to provide updates on communication strategies throughout the year.