City Council Worksession

South St. Paul WORKSESSION AGENDA SSP City Hall 125 3rd Avenue North Training room Monday, July 10, 2023 7:00 pm AGENDA: 1. 1st Quarter 2023 Financial Report and Budget Adjustments 2. Public Works Director Appointment (No Attachment) 3. 450 Hardman Avenue Discussion 4. Concord Street Special Assessments 5. Well No. 3 Water Treatment Plant 6. Council Comments & Questions  COUNCIL WORKSESSION REPORT A DATE: JULY 10, 2023 1 DEPARTMENT: FINANCE Prepared by: Clara Hilger ADMINISTRATOR: RG AGENDA ITEM: 2023 First Quarter Financial Report and Budget Adjustments and Status of Financial Audit Findings DESIRED MEETING OUTCOMES: Discussion on the 2023 First Quarter Financial Report and Budget Adjustments OVERVIEW: 2023 First Quarter Financial Report The first quarter of 2023 is complete and financial results are available. The Finance Director prepared the attached first quarter financial report for Council review. The following items are important to note when reviewing the report:  The Benchmark is roughly 25% and is based on a fluid calendar year of operations.  Many of the variances result from seasonality and not all financial transactions occur evenly throughout the year. Some are one time or periodic activities that do not occur in each quarter.  Investment income is recorded and allocated to the funds on a semi-annual basis.  Large revenue sources (i.e. tax settlements and LGA) are received in July and December, which underscores the importance of a strong fund balance as a tool to avoid General Fund borrowing for operations. Finance has not noted any worrisome variances in the operating funds for the first quarter. The variances that have occurred are noted in the attached report. The following variance is of note (but not concerning):  ARPA funds will be used to pay for the majority of the fire department costs in 2023. A resolution will be prepared to move $2,200,000 from the General Fund to the Capital Programs fund. These transferred funds will be used to pay for the purchase of 316 Malden St in 2023. The attached financial report includes budget revisions that affect several departments and funds:  Personnel costs including fringe benefits were adjusted to reflect settled contracts and insurance elections. These adjustments are reflected in the general, library, arena, airport, water and sewer utility, and central garage funds.  Property taxes were moved from the General fund to the Library Fund to balance the Library budget and the contingency in the General Fund was reduced by the same amount.  The contingency in the General Fund was reduced to offset the general fund expenditure budget adjustments.  Intergovernmental revenue was increased to reflect the COPS grant that will pay for a portion of new police officer positions in 2023. Status of Financial Audit Findings The 2022 Annual Comprehensive Financial Report will be completed and presented to the City Council on July 24, 2023. Staff turnover at the City and a staffing shortage at MMKR (our auditors) have delayed the completion of the financial report this year. A 45-day extension to the June 30 statutorily required submission to the Office of the State Auditor was requested and granted on June 22, 2023. NEXT STEP: The 2023 first quarter financial report, budget amendments, and funds transfer will be presented for formal action at the July 17, 2023 City Council meeting. SOURCE OF FUNDS: N/A  Benchmark 2023 2023 Actual thru 25% Description Original Amended March Percent Budget Budget 2023 of Budget GENERAL OPERATING FUND GENERAL FUND - REVENUES Taxes 12,948,118.00 12,936,168.00 0.00 0.00% A Fees 1,821,335.00 1,821,335.00 146,513.01 8.04% B Intergovernmental 2,354,888.00 2,394,888.00 192,584.75 8.04% C Charges for Services 1,708,457.00 1,708,457.00 483,316.93 28.29% Other Revenues 57,000.00 57,000.00 7,669.46 13.46% D Transfers In/Fund Balance 190,000.00 190,000.00 47,505.00 25.00% Total Revenues 19,079,798.00 19,107,848.00 877,589.15 4.59% GENERAL FUND - EXPENDITURES General Government Mayor & Council 171,531.00 171,531.00 45,095.22 26.29% Administration 571,179.00 570,219.00 134,569.40 23.60% Human Resources 263,617.00 272,627.00 57,291.00 21.01% City Attorney 90,000.00 90,000.00 7,845.98 8.72% E City Attorney - Criminal 170,000.00 170,000.00 30,443.54 17.91% F City Clerk 247,761.00 253,508.00 63,572.78 25.08% Information Technology 763,266.00 763,565.00 144,376.79 18.91% Recycling 28,596.00 28,596.00 67.77 0.24% G Finance 469,651.00 469,976.00 117,089.69 24.91% Total General Government 2,775,601.00 2,790,022.00 600,352.17 21.52% Public Safety Police 7,532,734.00 7,711,216.00 1,898,958.15 24.63% Fire 2,751,031.00 544,043.00 7,584.00 1.39% H Total Public Safety 10,283,765.00 8,255,259.00 1,906,542.15 23.09% Public Works Engineering 574,997.00 674,956.00 129,281.69 19.15% Streets, Alley's and Blvd's 2,082,982.00 2,022,439.00 517,779.45 25.60% Buildings 273,246.00 271,535.00 76,350.61 28.12% Parks Facilities and Maintenance 1,269,114.00 1,294,632.00 260,041.88 20.09% Total Public Works 4,200,339.00 4,263,562.00 983,453.63 23.07% Community Development Development Services 539,948.00 550,452.00 136,101.82 24.73% Code Enforcement 180,056.00 171,310.00 33,771.15 19.71% Total Community Development 720,004.00 721,762.00 169,872.97 23.54% Leisure Services Parks Administration 304,913.00 287,671.00 61,977.73 21.54% Splash Pool 74,606.00 75,318.00 5,245.10 6.96% I Northview Pool 98,906.00 99,618.00 4,261.64 4.28% I Recreation Programs 271,569.00 244,425.00 47,095.63 19.27% Community Affairs 129,712.00 129,901.00 34,281.29 26.39% Total Leisure Services 879,706.00 836,933.00 152,861.39 18.26% Nondepartmental Contingencies 220,383.00 33,322.00 0.00 0.00% Transfers out 0.00 2,206,988.00 0.00 0.00% Total Nondepartmental 220,383.00 2,240,310.00 0.00 0.00% Total Expenditures 19,079,798.00 19,107,848.00 3,813,082.31 19.96% Revenues Over (Under) Expenditures 0.00 0.00 (2,935,493.16)  Benchmark 2023 2023 Actual thru 25% Description Original Amended March Percent Budget Budget 2023 of Budget OTHER OPERATING FUNDS LIBRARY FUND Revenues 816,362.00 828,312.00 1,182.20 0.14% A Expenditures 816,362.00 828,312.00 205,383.46 24.80% Revenues Over (Under) Expenditures 0.00 0.00 (204,201.26) DOUG WOOG ARENA Revenues 1,079,500.00 1,079,500.00 308,779.46 28.60% Expenditures 1,045,845.00 1,062,077.00 288,290.08 27.14% Revenues Over (Under) Expenditures 33,655.00 17,423.00 20,489.38 AIRPORT OPERATING FUND Revenues 1,456,142.00 1,456,142.00 396,333.42 27.22% J Expenditures 1,501,275.00 1,530,602.00 234,690.32 15.33% Revenues Over (Under) Expenditures (45,133.00) (74,460.00) 161,643.10 STORM WATER UTILITY FUND Operating Revenues and Grants 725,920.00 725,920.00 46,269.52 6.37% K Expenditures - Operating 600,724.00 600,724.00 177,108.90 29.48% Transfers - Capital 67,300.00 67,300.00 31,302.00 46.51% L Revenues Over (Under) Expenditures 57,896.00 57,896.00 (162,141.38) STREET LIGHT UTILITY FUND Revenues 349,840.00 349,840.00 27,733.09 7.93% K Expenditures 272,952.00 272,952.00 44,601.74 16.34% Revenues Over (Under) Expenditures 76,888.00 76,888.00 (16,868.65) WATER AND SEWER UTILITY FUND Revenues Administration 31,000.00 31,000.00 0.00 0.00% D Water Utility 10,286,775.00 10,286,775.00 209,122.00 2.03% K Sewer Utility 4,629,750.00 4,629,750.00 365,282.92 7.89% K Total Revenues 14,947,525.00 14,947,525.00 574,404.92 3.84% Expenditures Adminsitration 524,389.00 512,811.00 115,912.24 22.60% Water Utility 1,088,147.00 1,097,559.00 285,777.41 26.04% Sewer Utility 4,015,672.00 4,024,878.00 1,252,667.98 31.12% M Total Expenditures 5,628,208.00 5,635,248.00 1,654,357.63 29.36% Transfers Water Utility 110,500.00 110,500.00 60,601.00 54.84% L Sewer Utility 174,500.00 174,500.00 110,451.00 63.30% L Total Transfers 285,000.00 285,000.00 171,052.00 60.02% Net Income (Loss) 9,034,317.00 9,027,277.00 (1,251,004.71) CENTRAL GARAGE - INTERNAL SERVICE FUND Revenues 1,664,188.00 1,664,188.00 462,450.69 27.79% Expenditures 1,489,151.00 1,498,434.00 230,305.30 15.37% Net Income (Loss) 175,037.00 165,754.00 232,145.39  Benchmark 2023 2023 Actual thru 25% Description Original Amended March Percent Budget Budget 2023 of Budget OTHER OPERATING FUNDS ECONOMIC DEVELOPMENT AUTHORITY Revenues 357,081.00 357,081.00 0.00 0.00% A Expenditures 357,081.00 357,081.00 40,145.92 11.24% Revenues Over (Under) Expenditures 0.00 0.00 (40,145.92) EDA - HOUSING (HRA LEVY) Revenues 1,088,227.00 1,088,227.00 166,147.80 15.27% A Expenditures 1,088,227.00 1,088,227.00 190,844.70 17.54% Revenues Over (Under) Expenditures 0.00 0.00 (24,696.90) HRA - PUBLIC HOUSING Revenues 2,084,500.00 2,084,500.00 224,269.41 10.76% N Operating Expenses 1,863,000.00 1,863,000.00 491,995.77 26.41% Capital Expenses 0.00 0.00 12,321.98 100.00% O Net Income (Loss) 221,500.00 221,500.00 (280,048.34) Budget amounts in blue include proposed adjustments for the 1st quarter Budget amounts in red reflect the adjustment to the Fire Department budget and transfer out to the Capital Programs Fund Tickmark Explanations for Budget VS Actual Variances A Taxes will be received in June/July and December/January B 1st quarter Franchise fees payment is received in April C LGA is received in July & December D Interest earnings are posted semi-annually and other minor revenues are unpredictable E Legal service invoices for one month only F Legal service-creiminal invoices for two months only G Compost site costs occur May through October H Fire Department invoices to be paid from ARPA funds in 2023 I Pools are only open June through August J Certain revenues come in at the start of the year at the Airport (land leases) K Utility revenues are based on service delivery, bills issued in Jan, Feb, Mar of 2022 are accrued back to the 2021 books as they are for services delivered in 2021. This is an annual occurrence. L Transfer for 2019A bond payment in February M Sanitary Sewer has 4 months of MCES charges N Activity from the tenant software has not been updated for 2023 O Capital expenses for Public Housing is not budgeted A COUNCIL WORKSESSION REPORT DATE: JULY 10, 2023 3 DEPARTMENT: EDA/ADMINISTRATION PREPARED BY: Ryan Garcia AGENDA ITEM: 450 Hardman Avenue Discussion DESIRED MEETING OUTCOMES: • Discuss request from Q3 Contracting for an extension of lease of property for staging materials through November 2024. • Discuss Council’s long-term objectives with respect to the future development of the site. DISCUSSION: History of the Site The 450 Hardman Avenue property, located at the southwest corner of Armour Avenue and Hardman Avenue, was acquired by the Housing and Redevelopment Authority of South St. Paul (HRA) over 25 years ago. Historically, the property was a part of the much larger Armour complex which fronted the Mississippi River, although with the exception of the two entry monuments which still stand today, no structures are known to have ever stood on the property. The property was generally used for surface parking and outdoor storage during the Armour years, and has remained vacant and zoned “Industrial” (currently “I-1, Light Industrial”) for the entire time that the HRA/EDA have owned it. From the early 1990s through the early 2000s, a number of actions created the layout of the development parcel as we see it today, most notably: • The creation of a new public road (Armour Avenue) on an alignment slightly north of the previous private Armour Avenue; • The preservation, in place, of two masonry and stone gate monuments to mark the historic entryway to the Armour plant; and • The realignment of Hardman Avenue from an alignment that ran along the eastern edge of the FOK/Sportsman’s Guide building to the current alignment to the east. (A rail spur, constructed in the early 1970s for the FOK warehouse, is still present and active in the western portion of this alignment). Upon its acquisition, the HRA conducted significant predevelopment due diligence on the site, including Phase I and Phase II environmental assessments and environmental mitigation activities. From 2006 – 2009, the HRA was actively negotiating a development project with a private developer (“Armourgate Properties”), with a site plan approved in 2006 for an approximately 49,000 SF single-story office/warehouse building occupying most of the Hardman Avenue frontage. As a part of the 2006 approval, the City also approved a minor subdivision to create a standalone, 0.11 acre (just under 5,000 SF) parcel around the Gatehouse structures. The primary parcel measures just over 3.75 acres in size. While there is no record of formal City consideration or approval of a revised site plan, records of HRA meetings from 2007 – 2011 indicate that this development concept was flawed and/or the developer lacked the sophistication or capacity to construct the project as approved. Within a year of City approval, the site plan went through (several iterations of) dramatic changes. Ultimately, the proposed building was downsized pretty significantly (almost ½). In 2009, the property was sold to Armourgate Properties for the purpose of constructing a 25,000 SF office-warehouse building. The developer was given until December 31, 2010 to secure a tenant/buyer and commence construction. Also in 2009, the developer commenced with site grading and the establishment of two stormwater management areas (at the northeast corner and southern tip), and the HRA assisted with geotechnical soil correction, generally to accommodate an approximately 25,000 square foot building footprint along the Hardman Avenue frontage. All was not well, however, and in late 2010 Armourgate notified the HRA that they declared themselves in default of the Development Agreement and wanted to convey the property back to the HRA. Re-conveyance occurred in 2011, and the site has had fleeting interest in the years since then. Today, we are left with a site that was prepared for a building that would not meet today’s floor area ratio (FAR) standards (approximately 40,000 SF would be required without a variance) and is particularly difficult to develop due to various site constraints. In this way, the site is not really “shovel-ready”, with the following issues representing additional work needed to maximize the site: • Any building(s) constructed on site will most likely need to install a sub-slab vapor mitigation system, per MPCA review and requirements, or at least conduct additional testing to “test out” of vapor mitigation requirements; • If the building design does not follow the previously proposed alignment and footprint along Hardman Avenue, it is likely that additional geotechnical soil correction will be needed; • Overhead Utility lines cross the site’s southern and western portions; and • The gate structures located along the Armour Avenue frontage present a practical challenge to effectively meeting the City’s required Floor Area Ratio (FAR) standard of 0.2, building placement/orientation, parking/loading, and site circulation. Moreover, the gate structures are widely recognized as a political hot potato at this point and developers are generally not keen to insert themselves into the debate about the fate of the structures The Armour Gates The 1918 brick and limestone towers mark what once served as the entry point to the Armour & Co. Meat Packing Campus and are understandably important reminders of the City’s history and legacy. However, the structures themselves are not significantly utilized by the community at large, or even the business park community. They have not been effectively cared for by the HRA and now the EDA, and are showing signs of deterioration. Although there was a flurry of correspondence from a handful of community members in early 2021, no party stepped forward with a feasible or sustainable preservation solution, although ideas ranged from “tear them down” to “restore and preserve them” and a few options in between. As the Council is likely aware, a teacher and group of students in the South St. Paul School District launched a campaign this past school year to save the Armour Gates and ostensibly to (compel the City to) develop the property as a “multi-purpose commemorative park”. To date an online petition has generated 2,000 supporters, however this group has not made any effort to reach out to City Staff about this concept. At several worksessions between 2018 - 2022, Council and Staff worked together to try and explore how or if relocation of the structures was a viable option. Working with former State Senator Bigham’s office, the City requested $350,000 in state funds to assist with relocation and restoration of the structures. As Council may recall, we were awarded only $50,000 for this effort, which would’ve been insufficient for relocation of the structures and thus would’ve required significant contribution of City funds to accomplish. The Council’s consensus at that time was to relinquish the State funding. Thus, Staff and the Council engaged in a follow-up discussion about alternative approaches to addressing the “gates” in Spring of 2022. Again, there was a lack of unanimity around a preferred option, but the two options with the most traction were to either remove and recognize (through reuse of the materials in a memorial plaque or landscape feature) the structures or to retain both structures on-site and restore/preserve the structures to address their deteriorating condition. Staff has received budget-level estimates for the various options that have been discussed with respect to the Armour Gate Structures: • Relocation and placement upon new footings: $150,000 - $175,000 if within SSP o Does not include any repair, replacement, or restoration of gate structures themselves o Assumes relocation within SSP, and no rail crossings or significant grade changes (so would need to be “down the hill”) • Restoration of both gate structures: $175,000 - $205,000 o Does not include roof replacement • Demolition of both gate structures: $20,000 - $25,000 o Does not account for any hazardous building materials that may be present (Asbestos, Lead Based Paint) Future Development Over the past several years, the EDA has periodically fielded preliminary interest for light industrial development at the site. Due to the site’s many challenges, including a perceived lack of consensus among the Council and a sense that there is at least some public sentiment that a light industrial development would be a net negative to the community if the gatehouse structures were compromised, development interest has never really advanced much. Currently, there is no active development interest in the site, so Staff felt this might be an opportunity to take a step back, discuss options, and establish a bit of a gameplan for the site/structures. Specifically, we’d like to discuss: • It is staff’s opinion that the site still presents a viable light industrial development opportunity, in spite of its challenges. That said, since we last discussed, the public sentiment around the gatehouse structures has evolved. Fundamentally, should Staff solidify a focus towards retention and restoration of the structures? The financial challenges of restoration persist, but if this is the Council’s direction, we would certainly  try to re-examine the possibility of leveraging additional state or county resources for such an effort. • If retention and restoration has emerged as the preferred option, staff would like to explore whether the EDA should recalibrate its approach to recruitment of developers/development on the site. Generally, we’ve been focused on finding a development of between 35,000 – 50,000 square feet in a single building and oriented in the previous soil correction area (along Hardman Avenue), to accommodate both the FAR requirement and the previous investments in soil correction. Particularly if the gatehouse structures are retained, this layout proves challenging; we might benefit from examining alternative development approaches to the site. • While Staff acknowledges the sentiment behind establishing a “commemorative park” at this location, frankly we question the viability of committing the substantial resources it would require to implement such a vision at this location and in this context. As the Council is aware, we are just launching an update to the City’s Park and Recreation Master Plan, so in that sense it is timely to explore more deeply whether a recreational amenity in the middle of the Bridgepoint Business Park registers as a high priority among the City’s many other Parks and Recreation System needs. If the Council wishes, we can certainly integrate such an exploration into the Plan Update more deliberately. Q3 Lease In April 2023, the EDA approved a lease agreement with Q3 Contracting, Inc. for the use of a portion of the property. The lease provided Q3 with an area to store and stage materials, equipment, and vehicles to be used in the course of an Xcel Energy construction project in the immediate area, and is set to terminate on October 31, 2023. Last week, Q3 requested an extension of this lease through November 2024, as they are unable to complete the project in the 2023 due to what they’re referring to as Xcel’s “budget constraints”. Staff would like to discuss this request with the Council to determine whether we are open to entertaining this request and, if so, whether any other lease terms or conditions should be modified. The current lease is attached. FUNDING SOURCES AND OTHER FINANCIAL CONSIDERATIONS: It is estimated that a 40,000 square foot office-warehouse building, if constructed on the site, would have a total property value of approximately $4,500,000 and pay an estimated $150,000 in annual property taxes, with about $40,000 of that total attributed to the City’s portion of the tax bill and about $32,500 of that total attributed to the School District’s portion (all figures assume 2023 tax values and rates). Admittedly, from a property tax perspective this estimate represents something of a “best case scenario” given the site’s limitations. A smaller building (or buildings) could reasonably be expected to be valued at between $105 - $110 per square foot and pay between $3.35 – $3.50 per square foot per year in total property taxes. Staff has received budget-level estimates for numerous options with respect to the Armour Gate Structures: • Relocation and placement upon new footings: $150,000 - $175,000 if within SSP o Does not include any repair, replacement, or restoration of gate structures themselves o Assumes relocation within SSP, and no rail crossings or significant grade changes (so would need to be “down the hill”)  • Restoration of both gate structures: $175,000 - $205,000 o Does not include roof replacement • Demolition of both gate structures: $20,000 - $25,000 o Does not account for any hazardous building materials that may be present (Asbestos, Lead Based Paint) The Q3 Lease currently nets $2,083 in monthly rent revenue to the Concord Street TIF District. ATTACHMENTS: Site/Orientation Map Current Lease with Q3 Site/Orientation Map  COUNCIL WORKSESSION REPORT A DATE: JULY 10, 2023 4 DEPARTMENT: ENGINEERING Prepared By: Nick Guilliams, City Engineer ADMINISTRATOR: RG AGENDA ITEM: Concord Street Special Assessments DESIRED OUTCOMES: Council direction on the special assessment amount for commercial properties with no direct access. OVERVIEW: Background A Feasibility Study and Report for the Concord Street Improvements was prepared in February 2020 detailing the proposed public improvements, right-of-way requirements, estimated costs, method of financing/assessments, and project schedule. Construction of the Concord Street Improvements project began in 2021 and is scheduled for completion in the summer of 2023. A final assessment map and final assessment role has been prepared and was presented to the City Council at the June 26, 2023 City Council meeting. The Council requested that staff examine the special assessment amount for commercial properties that do not have direct access to Concord Street. Per the City’s assessment policy, commercial properties are assessed on a front foot basis with no maximum regardless of if they have direct access to the street or not. Commercial properties result in more intense uses to the City’s road network. Thus, they receive a greater benefit when a street is reconstructed. Many cities in Minnesota have a similar approach for assessing commercial properties. The limited special benefit analysis that was completed to develop final assessments greatly reduced the assessment amounts for commercial properties with no direct access from the preliminary assessment amount in the feasibility report. Overall, the final assessment amounts for these types of properties were reduced to approximately 20% of the original feasibility number with the 0.5% cap. Attached to the memo is a table showing special benefit amount options for commercial properties with no direct access for the City Council to consider. ACTION NEEDED Council direction on the special benefit amount for commercial properties with no direct access.  40' 40' 35' 40' 177' 40' 80' 129' 151' 75' 80' 118' 133' 81' 81' 38' 76' 38' 40' 80' 80' 80' 67' 76' HOME 4 6 1 10 11 12 13 14 17 18 3 8 9 15 19 20 21 22 23 24 2 16 25 R ST AV 5 STAN LE Y 13 E BIRCHER AVE W ILL IS AV E Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments ¯ Concord Street Final Assessment Maps 05/31/2023 - Page 1 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  37 1455' 103' 40' 50' 1008' 110' 266' 184' 80' 40' 40' 15' 80' 36 319 30 31 32 33 34 780' 27 28 29 25 26 35 BUTLER AV E Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal ¯ Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments Concord Street Final Assessment Maps 05/31/2023 - Page 2 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  PORT CROSBY RD 43 65' 238' 59 37 40 42 80 70 696' 150' 66' 238' 160' 1455' 223' 25' 25' 50' 25' 25' 50' 25' 25' 75' 125' 50' 25' 25' 25' 360' 780' 58 63 66 71 45 68 41 166' 174' 55 56 60 61 62 64 65 67 50 36 72 35 BR YA NT AV E Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments ¯ Concord Street Final Assessment Maps 05/31/2023 - Page 3 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  Mississippi River 88 92 98 106 80' 80 100' 68' 99 247' 102 108 82 83 85 110 111 115 87 304' 127 160' 103 121' 67' 40' 572' 130' 40' 202' 40' 223' 537' 55' 50' 50' 175' 93' 25' 25' 25' 125' 12' 25' 50' 174' 440' 109 25' 65' 25' 51' 100' 215' 71 24' 12' 112 50' 113 12' 59' 205' 114 116 76 81 72 74 84 100 105 78C (78+79+81) 86 75 107 90 107 78 94 96 73 CON COR D PL 77 79 101 93 A L AV E 97 CENTR Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments ¯ Concord Street Final Assessment Maps 05/31/2023 - Page 4 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  ver Mississippi Ri 318 MAN A VE HARD 161 82' 26' 26' 26' 26' 1091' 174' 136C (136+141) 141 146 23' 127 572' 136 144 149 454' 150 152 155' 139' 58' 154 178 358' 157 159 151 153 93' 57' 100' 3' 43' 28' 28' 28' 28' 42' 50' 35' 22' 28' 25' 25' 50' 33' 160 88' 133 25' 43' 112' 24' 114' 12' 59' 121 129 131 463' 53' 66' 116 117 119 120 122 124 126 128 57' 132 135 138 139 142 267' 125 130 140 137 145 163 123 134 147 148 330' CON COR D PL 166 WENTWORTH AVE 155 DWAN E ST Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments ¯ Concord Street Final Assessment Maps 05/31/2023 - Page 5 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  VE A NA R DM HA GRAND AVE STOCKYA RDS RD 193 188 191 183 178 170 167 560' 183' 354' 255' 186' 457' 358' 207' 176' 148' 100' 375' 100' 143' 75' 75' 213' 267' 187 189 172 175 179 184 186 169 192 166 163 FRO NTA GE RD N 194 CON COR D EXC HAN GE 168 168 MO RI AL DR Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped VE TE RA NS ME Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal ¯ Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments Concord Street Final Assessment Maps 05/31/2023 - Page 6 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  BR ID GE PO IN T 212 193 DR 224 203 224C (224+226) 197 226 199 457' 526' 229' 304' 58' 226' 224 581' 42' 238' 194' 131' 75' 176' 25' 25' 25' 201 204 250' 188' 234' 195 25' 25' 25' 101' 208 217 198 205 207 209 213 214 215 194 211 206 CONCORD EXCHANGE FRONTAGE RD S CAMB E R AV E Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal ¯ Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments Concord Street Final Assessment Maps 05/31/2023 - Page 7 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  251 224 AR MO UR AV E 241 224C (224+226) 260 226 282 320 395' 217' 209' 265 222' 224 32' 581' 229' 381' 139' 245 RD S FR ON TA GE EX CH AN GE CO NC OR D FRONTA GE RD 455' 280 CA MB ER AV E Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal ¯ Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments Concord Street Final Assessment Maps 05/31/2023 - Page 8 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access  UME A 312 VE 310 V IL L A 302 282 317 33' 486' 67' 381' 489' 218' 315 FR ON TAG E RD 571' 455' 350' 280 313 284 IST H4 94 Right-of-Way Frontage Residential Frontage Non-Residential Undeveloped Irregular Frontage Residential Backage Public City Concrete Pavement Rehabilitation Area Non-Residential Commercial "Flag Lot" Public State Full Reconstruction Area Non-Residential Commercial - Direct Access Single Business Public Federal ¯ Railroad Non-Residential Commercial - Direct Access Multi-Business Properties Combined Since Preliminary Assessments Concord Street Final Assessment Maps 05/31/2023 - Page 9 of 9 Clustered Properties with Shared Owner Non-Residential Commercial - No Direct Access S.A.P. 168-010-004 & 1912-59 - CONCORD STREET (TH 156) IMPROVEMENTS SPECIAL BENEFIT ASSESSMENT ROLL - NO DIRECT ACCESS PROPERTIES (RECONSTRUCTION AREA) Map Property Assessment Frontage Assessed Frontage Property Value at Time Assessment Policy Feasibility Report Special Benefit Assessment 0.25% Assessment 0% Assessment Property Type PIN Owner No. Address Rate Length Length of Feasibility Report Amount Assessment Amount Amount (0.50%) Percentage of PV Percentage of PV NORTH OF GRAND AVENUE 40 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361670002040 E & E ENTERPRISES INC 1190 CONCORD ST N $ 94.85 223 223 $ 134,900.00 $ 21,151.55 $ 6,745.00 $ 674.50 $ 337.25 $ - 142 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-362475004151 ABRAMOWICZ DAVID M 501 CONCORD ST N $ 94.85 88 88 $ 209,800.00 $ 8,346.80 $ 8,346.80 $ 1,049.00 $ 524.50 $ - 166 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-368010001477 TK IV LLC 333 CONCORD EXCHANGE N $ 94.85 267 267 $ 335,300.00 $ 25,324.95 $ 16,765.00 $ 1,676.50 $ 838.25 $ - 167 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-360380000010 VO TAN 240 CONCORD ST N $ 94.85 186 186 $ 94,000.00 $ 17,642.10 $ 4,700.00 $ 470.00 $ 235.00 $ - 168 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-368010001475 PETERSON ADRIAN R 245 CONCORD EXCHANGE N $ 94.85 213 213 $ 405,500.00 $ 20,203.05 $ 20,203.05 $ 2,027.50 $ 1,013.75 $ - 170 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-360380000060 VO TAN 201 CONCORD ST N $ 94.85 255 255 $ 210,900.00 $ 24,186.75 $ 10,545.00 $ 1,054.50 $ 527.25 $ - 178 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-360380000041 COURY PROPERTIES LLC 302 HARDMAN AVE N $ 94.85 358 358 $ 547,600.00 $ 33,956.30 $ 27,380.00 $ 2,738.00 $ 1,369.00 $ - 318 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS N/A CHICAGO & NW TRANSPORTATION CO 301 HARDMAN AVE N $ 94.85 1091 1091 $ 1,016,000.00 $ 103,481.35 $ 50,800.00 $ 5,080.00 $ 2,540.00 $ - SUBTOTAL (NORTH OF GRAND) $ 145,484.85 $ 14,770.00 $ 7,385.00 $ - SOUTH OF GRAND AVENUE 188 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361625001010 STORE MASTER FUNDING I LLC 100 GRAND AVE E $ 94.85 183 183 $ 669,300.00 $ 17,357.55 $ 17,357.55 $ 3,346.50 $ 1,673.25 $ - 189 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-367285002284 SSTP PROPERTIES LLC 166 CONCORD EXCHANGE N $ 94.85 176 176 $ 509,900.00 $ 16,693.60 $ 16,693.60 $ 2,549.50 $ 1,274.75 $ - 193 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361505102010 SCHADEGG PROPERTIES II LLC 150 BRIDGEPOINT DR $ 94.85 457 457 $ 2,798,400.00 $ 43,346.45 $ 43,346.45 $ 13,992.00 $ 6,996.00 $ - 194 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-367285002321 TL INVESTMENTS GROUP LLC 111 SOUTH CONCORD EXCHANGE $ 94.85 176 176 $ 170,500.00 $ 16,693.60 $ 8,525.00 $ 852.50 $ 426.25 $ - 195 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-360270001101 TL INVESTMENTS GROUP LLC 111 SOUTH CONCORD EXCHANGE $ 94.85 238 238 $ 148,700.00 $ 22,574.30 $ 7,435.00 $ 743.50 $ 371.75 $ - 198 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361526000433 TL INVESTMENTS GROUP LLC 125 CONCORD EXCHANGE S $ 94.85 194 194 $ 171,800.00 $ 18,400.90 $ 8,590.00 $ 859.00 $ 429.50 $ - 203 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361625000013 ROMAR OFFICE CONDOMINIUM ASSOCIATION 100 BRIDGEPOINT WAY $ 94.85 226 226 $ 10,600.00 $ 21,436.10 $ 530.00 $ 53.00 $ 26.50 $ - 212 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361504001010 BRIDGEPOINT BUSINESS CENTER I LLC 290 BRIDGEPOINT DR $ 94.85 526 526 $ 5,715,300.00 $ 49,891.10 $ 49,891.10 $ 28,576.50 $ 14,288.25 $ - 213 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361526000211 MINCKE D WAYNE 221 CONCORD EXCHANGE S $ 94.85 250 250 $ 399,300.00 $ 23,712.50 $ 19,965.00 $ 1,996.50 $ 998.25 $ - 214 NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-361526000111 JJMURPHY LLC 235 CONCORD EXCHANGE S $ 94.85 188 188 $ 363,900.00 $ 17,831.80 $ 17,831.80 $ 1,819.50 $ 909.75 $ - 224C NON-RESIDENTIAL COMMERCIAL NO DIRECT ACCESS 037-360380000034 JWR DEALERSHIP REAL ESTATE LLC 425 CONCORD ST S $ 94.85 852 852 $ 4,071,100.00 $ 80,812.20 $ 80,812.20 $ 20,355.50 $ 10,177.75 $ - SUBTOTAL (SOUTH OF GRAND) $ 270,977.70 $ 75,144.00 $ 37,572.00 $ - TOTAL ASSESSMENTS $ 416,462.55 $ 89,914.00 $ 44,957.00 $ - City of South St. Paul Local Funding Summary Total City/Local Funding $ 7,346,397 $ 7,346,397 $ 7,346,397 Turnback Funds (through county) $ 4,851,364 $ 4,851,364 $ 4,851,364 Special Assessments (6/2023 Using (6/2023the Total Using Assessments the Total ProjectAmount Above) $ Assessments) 993,861 $ 948,904 $ 903,947 City Local Funding $ 1,501,172 $ 1,546,129 $ 1,591,086 A COUNCIL WORKSESSION REPORT DATE: JULY 10, 2023 5 DEPARTMENT: ENGINEERING Prepared By: Nick Guilliams, City Engineer ADMINISTRATOR: RG AGENDA ITEM: Well No. 3 Water Treatment Plant DESIRED OUTCOMES: Council direction on financing and bidding of the proposed Well No. 3 Water Treatment Plant. OVERVIEW: Background Well No. 3 is one of the City’s highest performing wells. Recent readings indicate that radium levels are currently out of compliance with Department of Health standards. Testing done from 2005 – 2021 at Well No. 3 show radium concentration levels at 8.4 (pCi/L). The US EPA primary health standard maximum contaminant level (MCL) is 5.4 (pCi/L). Radium is a naturally occurring chemical found in air, water, and soil, and radium levels in groundwater fluctuate over time. Radium is common in the St. Peter-Prairie Du Chien Jordan aquifer, which is the groundwater aquifer that South St. Paul and most communities in Dakota County draw their groundwater from. The City treats groundwater for a variety of contaminants, including radium. Although we are all exposed to radium that occurs naturally in our environment, large doses of radium over many years may increase the risk of developing cancer for some people. A feasibility study was prepared back in March of 2022 to evaluate different treatment alternatives to reduce radium at Well No. 3. The study recommended the construction of a pressure filtration treatment plant to reduce radium in the South St. Paul water system. The City Council authorized the preparation of plans and specifications in 2022. The design of the water treatment plant is now complete, and all approvals have been received to advertise the project for construction. Unfortunately, this project was not funded in the recent bonding bill. However, the Minnesota Public Facilities Authority in conjunction with the Minnesota Department of Health have developed the Drinking Water Revolving Fund (DWRF) to help communities build drinking water storage, treatment and distribution systems that comply with standards in the Safe Drinking Water Act. The fund provides below-market-rate loans to upgrade and construct public drinking water systems. Staff recently applied to receive financing but is not committed at this point. The total project cost is approximately $8,500,000 and the DWRF can fund the entire amount. The interest rate is approximately 2% and the City would have 20 years to pay the loan back. After discussing our options internally, the City’s finance director indicated that the DWRF would be the best way to fund the project. Staff is recommending the project be bid this summer to take advantage of the current bidding environment. Several water treatment plant projects throughout the state are scheduled to be bid for construction this fall/winter and there are a limited number of contractors that specialize in water treatment plants. Bidding this project prior to other projects should result in more bidders and more competitive pricing. Furthermore, water treatment components are currently experiencing supply chain issues with very long lead times. Bidding the project this summer will allow parts to be ordered in advance so construction can begin in the Spring of 2024. ACTION NEEDED Council direction on the financing and bidding of the proposed Well No. 3 Water Treatment Plant.