ITEM 3 SCC Budget discussion10
OTY I tCI�eIF
O
MINNESOTA
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: September 3, 2014
SUBJECT: September 8, 2014, Budget Discussion
iii Em 3
At Monday's work session we will go through first review of the remainder of the departments
in the draft 2015 General Fund budget; this will conclude the first review of the entire General
Fund budget with staff and the Council. In addition, staff has prepared follow-up on two items
raised at previous budget meetings.
Below is a list of the department budgets that will be reviewed and a brief summary of several
supplemental discussion topics:
Follow -Up:
Information Technology Budget: The Council requested a breakdown by category of the
payments to Softronics. That breakdown is attached along with detail of the software
maintenance contracts the City pays for the various software programs used by all
departments.
Streets Budget: The initial proposed sign material budget was significantly less than prior year
budgets, and after further review with Lead Street Maintenance Kevin Lamson, we suggested to
the Council that the budget may not meet the required replacement plan costs in 2015.
Therefore, the Council directed staff to review the budget and propose a revised number. Both
Kevin Lamson and Rick Knutson have reviewed the budget; based on their review, staff
recommends a Sign/Signal Materials budget of $12,800 for 2015, an increase of $2,300 from
the initial budget request.
Department Review:
Parks Maintenance: It was discovered while reviewing ball field maintenance costs that the
proposed draft revenue budget does not include ball field use fees. Ross Demant, Parks and
Recreation Manager has estimated the fees so the fee revenue can be included in the budget to
partially offset maintenance costs.
Kaleidoscope Park Dedication Agreement — Attached is a memo from City Planner, Dan Licht
along with an Agreement between Kaleidoscope and Otsego drafted by City Attorney, Andy
MacArthur for the use of Kaleidoscope ball fields in lieu of park dedication on the recently
approved school expansion. Staff is requesting Council input before the Agreement is placed
on the regular agenda for approval as the Agreement requires ongoing maintenance by the City
that needs to be included in future budgets.
Recreation: In addition to the departmental budget, an Otsego Festival Update and Preliminary
Financial Report will be provided by Ross Demant, Parks and Recreation Manager.
Prairie Center
Administration
Economic Development: At the July 23, 2014, Council meeting, the Council identified two
Economic Development Strategic goals: City wide broadband access and implementing a
marketing plan. The proposed 2015 Economic Development budget includes funds for
economic development, but the funds are not specifically dedicated to the Council's goals. In
addition to supply, training, and membership funds, the budget includes $5,000 for marketing
and $5,000 for contracted services. The Council's expectations for the goals should be
discussed to determine the outcome desired and the cost, if any, to achieve that outcome and
the budget adjusted accordingly.
Employee Compensation and Staffing Levels: The proposed budget includes funds in the
Council Contingency line item for a market rate adjustment at the Council's discretion. The
total pay and benefit cost of each percent of adjustment is approximately $12,800 for the
General Fund.
Health insurance premiums are expected to increase 30 percent according to the City's
insurance agent. No increase in the City's contribution level is proposed at this time.
The proposed budget does not include funding of staffing requests pending Council input. The
positions requested are: Deputy City Clerk, Park Seasonal Maintenance. Instead of specifically
approving added positions now, the Council could, instead, add a set amount to the budget
with the understanding that the positions would be further refined and considered after budget
approval to ensure that the positions are well thought-out and meet as many staffing shortages
as possible with the funds allocated.
Finally, as you know, the maximum proposed levy must be adopted at the September 22
meeting. Therefore, any input you can provide about the levy and General Fund budget now
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will be helpful as we prepare for the September 15 budget discussion. Of course, the General
Fund budget is not adopted until December, and the Council will have at least one budget
meeting on the General Fund between now and the public input meeting on December 8. If
there is any specific information you want for the September 8 or September 15 meetings,
please let me know.
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Sign Budget Recommended Change
Original Budget:
Signals: $1,000
Blanket Replacements: $1,500
Sign Maintenance: $200,000 X 4%= $8,000
Total= $10,500
Recommended Budget:
Signals: $1,000
Blanket Replacements: $1,500
Sign Maintenance: $259,517.20 X 4%= $10,380.68
Total= $12,800.68
Notes:
No association signage considered
New signage to be maintained in these new developments:
-Pleasant Creek Farms 5th
47 lots
-Martin Farms West
138 lots
-Arbor Creek 3rd
155 lots
-Heritage Point
27 lots
-Crimson Ponds West
25 lots
-Boulder Creek
360 lots
-Wildflower. 3.`.d
24 -lots
-River Pointe
37 lots
813 lots
Cl/V)4
2015 Ball Field Use Fees
September 5, 2014
6 Baseball Fields per day x 4 days in one week at $75 per field=$1,800
(We only charge for what the associations use in one week)
5 Soccer Fields 4v4 non -irrigated- $50 per field: $250
15 Soccer Fields 4v4 irrigated- $70 per field: $1,050
4 Soccer Fields Full Size- $100 per field: $400
Total estimated revenue: $3,500
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TPC3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231 .5840
Facsimile: 763.427.0520
TPC@P Plan ningCo.com
MEMORANDUM
TO: Otsego Mayor and City Council
FROM: Daniel Licht, AICP
DATE: 3 September 2014
RE: Otsego — Kaleidoscope Charter School; Park Dedication
TPC FILE: 101.02
BACKGROUND
Kaleidoscope Charter School has received City approval for a 29,598 square foot
expansion of its existing 43,015 square foot building that will allow for the education
program to serve Kindergarten through 12th grade students. To accommodate the
building expansion, Outlot A, Dara Glen to the west of the School's existing property
has been acquired and is to be platted together with the existing lot upon which the
school developed. The subject site is located at 7525 Kalland Avenue, north of 70th
Street and west of CSAH 19. The City Council approved a PUD -CUP, preliminary and
final plat and vacation of existing easements at their meeting on 11 August 2014. The
final platting of Outlot A, Dara Glen Addition requires dedication for parks and trails in
accordance with Section 20-7-18 of the Subdivision Ordinance.
Exhibits:
A. Draft Agreeement
B. Site location
C. Site Plan
ANALYSIS
Section 20-7-18 of the Subdivision Ordinance, the City may require dedication of 10
percent of the five acre parcel being final platted (0.5 acre), payment of a cash fee in
lieu of land at $3,500 per acre ($17,500) or a combination thereof. City staff and
Kaleidoscope officials have discussed satisfaction of park dedication requirements by
provision of a permanent easement allowing the City access to the playfield and parking
facilities on the expanded campus property and an agreement regarding long-term
maintenance.
City Attorney has drafted an agreement that requires Kaleidoscope to provide the park
easement for the playfield and parking areas, which are permanent. The agreement
also outlines a 20 year term for joint use and management of the fields whereby
Kaleidoscope provides for the initial capital investment in developing the playfield and
parking lot, including installation and operation of the irrigation system. The City would
assume responsibility for mowing, fertilizing, weed control and field preparation during
the summer to ensure that the playfields are maintained to standards consistent with
other City facilities and recognizing the City's greater capabilities for this work. The
agreement provides that the City may retain any field use fees it collects from recreation
program participants using this location to defray maintenance costs or for other City
expenses.
The Future Park and Trail Plan adopted as part of the 2012 Comprehensive Plan
identifies the need for additional play fields in the City and includes a search area in
west Otsego for such community facilities. The opportunity to partner with
Kaleidoscope Charter School will provide the City with additional playfields without the
capital costs for acquisition and development of the playfields and 84 stall parking lot.
The City will incur additional maintenance costs as part of the agreement to maintain
the fields to the level needed for City recreation program use, but these costs would be
incurred if the City added facilities the needed to meet the demand for playfields with
community. The playfields available at this location can also be expanded in the future
with additional property acquired from adjacent parcels either through park dedication or
purchase.
CONCLUSION
The City Council will review the draft agreement regarding park dedication at their work
session meeting on 8 September 2014. City staff is recommending approval of the
proposed agreement and seeking direction to place the agreement on the City Council
agenda for 22 September 2014.
C. Lori Johnson, City Administrator
Tami Loff, City Clerk
Andy MacArthur, City Attorney
Ross Demant, Parks and Recreation Manager
2
Draft September 3, 2014
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
AGREEMENT BETWEEN THE CITY OF OTSEGO AND KCS BUILDING COMPANY REGARDING SHARED
PLAYFIELD AND PARKING LOT USE
THIS AGREEMENT made this _ day of September, 2014 by and between the City of Otsego (CITY), a
Minnesota municipal corporation and KCS Building Company (KCS), a Minnesota company.
WHEREAS, KCS has recently applied for and received approval from CITY for an expansion of the
Kaleidoscope Charter School located on Lot 1, Block 1 and Outlot A, DARA GLEN within the City of
Otsego; and
WHEREAS, CITY and KCS have entered into a Development Agreement relative to the expansion; and
WHEREAS, pursuant to the approval and the Developers Agreement KCS is obligated to pay $17,500.00
in Park and Trail Dedication fees in lieu of land to CITY; and
WHEREAS, CITY has indicated that it would waive those fees upon an agreement acceptable to CITY for
shared use of a recreational field and parking lot located upon the property as set forth on attached
Exhibit A.
NOW, THEREFORE CITY and KCS enter into this Agreement regarding shared use of the facilities
described in Exhibit A.
1. CITY will have use of the playfields and off-street parking lot from April 1 to October 31 of each
year, subject to reasonable scheduled use of the facilities by KCS. CITY and KCS will meet yearly
to schedule use and both parties will accommodate the others reasonable shorter term requests
for use.
2. KCS will install irrigation in the playfields acceptable to CITY. KCS will pay for all water used for
irrigation purposes. Irrigation of the playfields shall be at a minimum of one inch per week and
shall be to the satisfaction of CITY, with the end result being a playfield suitable for recreation
use by CITY.
3. During the period of use, April 1 through October3l, CITY will maintain the playfields including
irrigation system operation (but not water expenses), mowing, fertilizer application, weed
control, striping and provision of recreational equipment, such as nets, as necessary for CITY's
use. At all other times KCS will maintain the fields at the same level of maintenance otherwise
provided by CITY. CITY will start up the irrigation system and will blow out the irrigation system
at the end of the year, regardless as to whether or not these tasks fall within the CITY period of
use.
4. During the period of CITY use and in order to help defray CITY maintenance costs and expenses,
CITY may collect a field use fee from participants in its recreation programs. CITY may also rent
the facilities to specific outside sports groups for their use for a fee. In the event that the
playfield is rented to any outside group, said group will be required to sign an acceptable waiver
of liability, indemnification and hold harmless agreement naming both CITY and KCS. Any
outside group renting the facilities shall provide proof of satisfactory insurance to cover any
potential claims or causes of action. Any and all fees or rent collected by CITY in relation to use
of the facilities shall be property of CITY and may be utilized for any purpose determined, at its
sole discretion, by CITY.
5. KCS will not take any action or will not fail to act which will detrimentally affect CITY use of the
playfields.
6. KCS will grant CITY (and its renters) an irrevocable right of entry to use and maintain the
playfields and right of entry to use off-street parking facilities pursuant to this Agreement.
7. CITY and KCS will both maintain liability insurance in the amount of at least $1,000,000.00
covering the facilities. CITY insurance will be effective during times of CITY use and KCS
insurance shall be effective during times of KCS use. CITY shall hold KCS harmless from any and
all claims or causes of action resulting from CITY use of the facilities. KCS shall CITY harmless
from any and all claims or causes of action resulting from KCS use of the facilities. This clause is
not intended, nor should it be interpreted as allowing for stacking of insurance policies.
8. CITY will, to the extent permitted by law, defend and indemnify KCS from any claims or causes of
action resulting from CITY use of the facilities, except for claims resulting from intentional or
grossly negligent acts or failures to act by KCS, its officers, agents or employees.
9. KCS will, to the extent permitted by law, defend and indemnify CITY from any claims or causes of
action resulting from KCS use of the facilities, except for claims or causes of action resulting
from intentional or grossly negligent acts or failures to act by CITY, its officers, agents or
employees.
10. This Agreement shall be construed in accordance with the laws of the State of Minnesota. If any
provision of this Agreement, or portion thereof, shall be held to be invalid, inoperative or
unenforceable, the remainder of the Agreement, shall not be affected, and the remaining
provisions of this Agreement shall remain valid and enforceable.
11. In light of this Agreement and faithful performance of the same by KCS, CITY will waive the
required payment of the $17,500.00 park and trail dedication in lieu of land for the Kaleidoscope
Addition Final Plat. In the event that KCS breaches the terms and conditions of this Agreement,
and upon notice and reasonable opportunity to cure any breach, CITY may reinstate the
required $17,500.00 park and trail dedication fee in lieu of land. KCS agrees that if it breaches
the Agreement, the $17,500.00 park and trail fee shall become an obligation of KCS or its assigns
or successors in title, and on behalf of KCS and its assigns and/or successors in title waives any
and all objections to payment of the same, any objection to the amount becoming a lien against
the property, and any objection to assessment of that amount, plus City costs and fees, against
the property including any required hearings, any irregularities in proceedings and any right of
appeal including, but not limited to the right of appeal under Minn. Stat. 429.081.
12. This Agreement shall be for a term of twenty (20) years.
13. The terms and conditions of this Agreement shall bind the parties and their respective assigns
and successors in title.
14. This Agreement shall be amended or supplemented only by written amendment executed by
both parties.
Dated:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
Dated:
KCS BUILDING COMPANY
By:
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