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04-28-03 CCMemo To: Otsego City Council From: David R. Wendorf C, Date: April 24, 2003 Re: Establishment of a Municipal Liquor Store Issue: The City is fast approaching a population which would preclude the option of establishing municipal liquor. The authority for establishing a municipal liquor store is found in Minnesota Statutes Chapter 340A.601. Pursuant to that statutory section, cities with populations of 10,000 or less may establish, own, and operate municipal liquor stores. A city which has established a municipal liquor store may continue to operate it notwithstanding a subsequent change in the population. In other words, as long as the liquor store is established before the City's population exceeds 10,000; it may continue to operate it as its population rises. Issue: The existence of on -sale establishments in the City creates a considerable potential problem for those businesses if municipal liquor is adopted. Municipal Liquor stores may be an on -sale establishment, off -sale establishment, or a combination of both. The statutory scheme appears to have been drafted contemplating that any municipal liquor store shall have a monopoly over retail intoxicating liquor sales, both on -sale and off -sale. The City may not establish a municipal liquor store until one year after publishing notice of its intent in the City's legal newspaper. The notice must indicate that the City will be engaging in the sale of intoxicating liquor to the exclusion of all private interests. Minn. Stat. §340A.601, subd. 7. The statutory scheme does allow the City to adopt what is referred to as "split liquor." This allows a city owning and operating a municipal liquor store to issue on - ,ale liquor licenses to hotels, clubs, and restaurants. However, a City may not issue licenses under the split liquor provision, other than a license issued to a club meeting certain criteria, until authorized by the voters of the city voting on the question at a special election called for that purpose. In summary, if the City establishes a municipal liquor store, it becomes the sole retailer of intoxicating liquors within the City, unless, after a referendum, the residents of the City vote to adopt the split liquor provisions. Liquor referendums can often be unpredictable and very close calls. The most recent referendum that the City held regarding Sunday liquor did pass, but narrowly. If the referendum adopting split liquor was to fail there undoubtly would be a considerable negative impact on current local on -sale liquor license holders. This could also effect the City's retail development. Issue: What happens to the existing on and off -sale retailers? The statutory scheme does not discuss the practicalities of dealing with the businesses within the community that already hold liquor licenses. The City should be aware that the Liquor and Gambling Enforcement Division of the Minnesota Department of Public Safety indicated that they believed no City, at least in the last 20 years, has attempted to establish municipal liquor store when it had existing on and off sale licenses. Therefore, the procedures for dealing with the existing license holders are not well settled. An unconditional license for the sale of intoxicating liquor involves a permit to engage in that business for the term of the license, which probably may be revoked only for misconduct of the licensee. Pursuant to the statutory scheme, the holders of existing unconditional liquor licenses are provided certain procedural safeguards prior to the revocation of any such license. In addition to the procedural safeguards, the license holders would also be able to seek judicial review. It has been opined in League of Minnesota Cities materials concerning municipal liquor stores that "it is highly doubtful that the decision of a council to operate a municipal store would itself constitute legal justification for revocation of an operative unconditional liquor license." Due to these difficulties, it is recommended that the City time its notice and establishment of the municipal liquor store, so that it occurs upon the expiration of the liquor licenses that are outstanding in the City. The theory being that the fact that private dealers have been licensed to operate in the past does not give them a vested right to continue in business under the license in the future. It is likely that businesses within the City who currently have liquor licenses would oppose the establishment of a municipal liquor store for obvious reasons. This could result in litigation. Minnesota cases have held that no person has a vested property right to engage in or continue to engage in the liquor business. The courts 0 Page 2 have also held that the establishment of municipal liquor is a proper exercise of police power. These holdings do provide the City with some basis to ultimately be successful in litigation but would not necessarily prevent litigation from being commenced on alternative or creative theories. From recent experience, specifically franchise issues, the Council understands the complexities of facing legal issues which that have not arisen for a long period of time. Cost of defense, insurance coverage and other issues can arise in these cases. Attached to the staff memo on costs of municipal liquor is a house bill authorizing actions for inverse condemnation when the government occupies the market. We have no information as to the status of that bill or any opinion as to its constitutionality or applicability to municipal liquor; however it does raise concerns in this context as inverse condemnation awards for existing profitable businesses could exceed City policy limits. 0 Page 3 1TEN1 4.7_ MEMO Date: April 24, 2003 To: Mayor & Council From: City Administrator Mike Robertson Re: Estimated Costs of Establishing a Municipal Liquor Store I have looked at a variety of costs involved in establishing a municipal liquor store. Below are estimates of those costs. If the City Council decides to proceed with starting a liquor store, staff would continue to refine these cost estimates. LAND ACQUISITION The site identified as the prime spot for a municipal liquor store is the northeast corner of Highway 101 and County Road 39, where the old Highway 101 Market corn stand is located. This site is currently owned by Otsego Land Company and represented by LandCor, Inc. LandCor is not supportive of the City establishing a liquor store on this site because of their time and effort spent recruiting MGM to establish a liquor store on another part of their development. Bob Fields of LandCor has quoted me a price of $1,000,000 an acre, or $23 a square foot, for a negotiated sale. The City could possibly condemn the land for less. If the City chooses condemnation, we would have to hire an appraiser to determine land value, as well as incur legal costs related to the condemnation. CONSTRUCTION COSTS If the City were to achieve a negotiated sale with LandCor, part of that sale, as it is for all of the Waterfront development property, would be that LandCor's construction arm would have to construct the building. Bob Fields of LandCor has told me they have estimated the construction cost of the current retail building which would house the MGM Liquor Store at $125 per square foot. That does not include the finishes, which are floor, equipment and shelving, which they estimate at an additional $5-10 per square foot. Therefore, LandCor's estimated construction cost today would be $130-135 per square foot. These cost estimates are based on meeting the City's building standards for the Waterfront development, which are currently higher than the City's building standards for any other commercial area in Otsego. The City of Rogers recently finished a new municipal liquor store. According to their finance director, the building was 10,800 square feet and the costs were $865,000 for construction and $65,000 for finishes, which translates to a cost of approximately $86 per square foot. STOCKING COSTS Stocking costs are the costs of buying the initial inventory for the liquor store. Rogers did not have much stocking costs for their new store because they transferred the inventory from their existing store. I have contacted a variety of area municipal liquor stores, there is a range of inventory cost of $30 to $40 per square foot. Based on these estimates, the cost to stock a new 10,000 square foot liquor store would be approximately $300-400,000. TOTAL CONSTRUCTION COSTS Using LandCor's estimates, which at this point are the most detailed and probably the most conservative, leads to the following estimates. Land Costs $1,000,000 Construction Costs (10,000 SF Bldg) $1,350,000 Stocking Costs $ 400,000 Total Startup Costs $2,750,000 OPERATING COSTS Operating costs are one of the keys to the level of profit made by a liquor store. A good manager is necessary to balance keeping operating costs as minimal as possible versus having enough employees to 2 adequately serve customers. I have reviewed the operating costs reported by municipal liquor stores to the State to generate an estimate for Otsego. The latest figures available from the State are for the year 2000. I have also tried to compare those operating costs with the size of the liquor stores for nearby cities to get a sense of how the size of store effects operating costs. The range is about 11-14% of total sales is the average yearly operating cost. A store that did $3,000,000 to $3,500,000 in total sales would have operating expenses within the range of $350,000-$500,000 on a yearly basis. DEBT SERVICE To finance the construction of a liquor store the City would borrow money on the bond market. Using the construction cost estimates above, I have had Paul Donna of Northland Securities, the City's Bond Consultant, estimate the size of the bond issue and debt service required. As part of the bond issue estimate, Paul Donna has added $850,000, which represents a year of operating expenses plus bonding costs. This would finance the liquor store through its startup phase. Based on these estimates, Paul Donna has estimated an average debt service yearly payment of $350,000 over the 15 year life of the bond. If the City did a 10 year bond, the average yearly debt service would be $475,000. POTENTIAL REVENUE The revenue is the most attractive aspect of a municipal liquor store. Profit can be measured a variety of ways but the best measurement is profit, before transfers, as a percentage of sales. This measures how efficiently a liquor store is managed. As reported to the State of Minnesota, the average municipal liquor store (off -sale only) makes a profit of 9.4% of sales (2000). The range for the communities in our area varies from 8% to 14%. 3 Based on the estimated construction costs, operating costs, and debt service, the City of Otsego would need sales of at least $3,500,000 to make a profit. These figures are conservative, so I expect as they are refined that the amount of sales necessary to make a profit would come down. The City's bond advisor Paul Donna has recommended that the City commission a market analysis to estimate the market available. He is aware of a community who did this recently for $4,000. As an example, sales for nearby cities are listed below. For Rogers, their new store opened in October, 2002 and is averaging about $5,000-$6,000 a day in sales so far. For a whole year that would be about $2- 2,200,000 in sales. Rogers had $1,307,000 in sales in 2000, with profits of 56,806. Elk River -$3,788,000 in sales in 2000, $4,100,000 in sales in 2002. Profits were $490,000 in 2000, $534,000 in 2002. Big Lake -$1,744,611 in sales in 2000, $1,960,000 in sales in 2002. Profits were $160,000 in 2000, $***** in 2002. Monticello -$2,619,955 in sales in 2000, $3,113,000 in sales in 2002. Profits were $$359,000 in 2000, $345,000 in 2002. LEGAL ISSUES City Attorney Andy MacArthur has prepared a memorandum and will be ready to discuss the legal issues related to a municipality starting a liquor store in Minnesota. POLITICAL ISSUES Proposed State Laws - A bill at the State Legislature allowing wine in grocery stores was defeated this year. A bill at the State Legislature to remove all restrictions on private competition with municipal liquor stores was defeated this year. A bill at the State Legislature to prevent municipalities from Owning liquor stores was laid over and the State Auditor's Office will probably do a study on City owned 4 enterprises. A bill at the State Legislature to declare an inverse condemnation when a local political subdivision decides to provide goods and services previously provided by the private sector is still alive. Obviously, if any of these laws were enacted it would have a major impact on the City's ability to start, maintain, or profit from a liquor store. These bills will keep coming back in the future. The wine in grocery stores lobby is particularly persistent and well funded. The legislators pushing the other bills have strong feelings about them as well and are not likely to give up. The Council should take this into consideration when making a decision. Shutting Down Existing Private Liquor Stores - City Attorney MacArthur will address the State law regarding a municipality's ability to shut down existing private liquor stores when it establishes a municipal liquor store. Discussion of this subject has already caused strong feelings among the current liquor store owners. SUbndARY Otsego could be expected to make money in a well managed store located on the northeast corner of Highway 101 and County Road 39. That money would not be available in any large quantity for the first few years due to start up costs and paying debt service. Once debt service was paid after 10-15 years, profit should reach a very nice amount, assuming good management and assuming no changes in laws governing municipal liquor stores or their competition. However, assuming no changes in those laws is not a safe assumption given the current political trends, and most changes currently being discussed would have at a minimum an adverse impact on revenue generated, while some proposed laws would shut down municipal liquor stores entirely. 5 City of Otsego bail Street Project= 02-06 and #0? -10 Lance Hovland, VP Energy Distribution Wright -Hennepin Cooperative Electric Association April 28ul, 2003 0 Gl'-H Overvieiv x 35,000 Residential and Commercial Customers s Apprommately 2600 households and businesses located in Otsego city limits. s Non -Profit organization a Profits are returned annually • over 16 million dollars given back over the years s Governed by nine Board of Directors Consumer elected just like your City Council members E One of 28 cooperative members of Great River Energy (majority wholesale power supplier) a Headquartered in Rockford, MN TY -H Ovei-v ew Offer Competitive Rates Virtually the same as Xcel Energy in all rate classes • National Publication had us tied with Xcel for 2nd best retail electric pricing in the nation • Provide members multiple options to save on electric bill 4 Purpose of Visit • Brief overview of W -H a Letters sent to City Engineer a Council's point of view • Other considerations F!' -H Overview Work to keep rates competitive a Controlling construction costs • Benefiting consumers are assessed for improvements, similar to SAC & WAC, street improvements, etc. — Following industry trends in recovering costs from new members through Builder & Developer charges — 6dsting members are not paying more than their share of new member growth — Competitive with neighboring utilities 1 P -H Overview a Apply Good Construction Practices a Install best cost construction alternative • meets the needs of the overall membership • maintains acceptable overall system reliability • consistent with the existing electric system configuration and policies of the industry m Strive to design & build installations that will outlast financial & industry accepted expectations • Revenues should match investment life • Properly Maintain System • W -H recently received a near perfect score from the USDA's Rural Utribes Service (RUS) divtsgn Operations & Maintenance review. Otsego 8511, Street road widening & bike path project Discussion on letters and phone conversations these past two months Alai -ch 10 lettet- a W -H's reasons for requesting aid to construction m Avoid accelerated depreciation and stranded investment • Existing facilities are in good condition — only 17 years old — 40 yr minimum life expectancy — Good reliability history :3 Underground upgrade is expensive • Up to 3 times the cost of new overhead • Up to 10 times the cost of moving the line 7 Not fair for the greater membership to share in the excess costs due to a Local Government Unit's special & unique requirements 11 PV_H Overy etiv a We are excited to be a partner in growth with the City of Otsego • We have been actively involved helping Otsego meet its growth • Operation Round Up m Otsego Festival • Recognized by chairperson a Meter reading & billing for City water services m Numerous Off -Peak customers Alarch 10 letter a Sent from Lance Hovland to Ron Wagner regarding reimbursement for moving line to accommodate 85th St project. .: Option #1: W -H relocate existing line along 851h Street at no charge Option #2: City of Otsego offset the higher cost of converting to underground (Aid to Construction) L Alai -ch Z?rh letter a Sent from Lance Hovland to Ron Wagner o Purpose was to summarize prior phone conversations and to help clarify concems of City Officials. • Feedback on March 10 letter • Introduced a new idea W -H is considering - Collect the excess electric improvements in Otsego through line item on Otsego customers' electric bills. • Express W -H's concern regarding City Administrator's suggestion that Otsego will raise permit fees & such 4 851", Street 0 If no city ordinance requiring underground existed, W -H's obvious choice for best cost alternative in construction would be to move the poles to accommodate the bike path. a Achieves the goal in controlling costs and providing quality service at competitive rates 0 IV=H Cotisiclet•ing a neii, poli'ev *Consistent with policies approved by Minnesota Public Utilities Commission for regulated utilities such as Xcel Energy in regards to: a Standard Facilities • best cost method a Special Facilities • Nonstandard design construction a Excess Expenditures • LGU pay the difference between special & standard facilities Si;iinntary o We are excited to be a partner in growth with the City of Otsego a dedicated to meeting the city's growing needs a We will work with the cities on payment methods, communication methods, a we want cities to receive the construction standards they desire • some methods are more expensive than others, and we will strive to achieve a win-win resolution. © 1 n TF -H would like to {tear voiet• response a Position/ Discussion a Relocation of poles in ROW at no charge to the city a City reimburse the cost difference to convert to underground a Add a line item on electric bills to Otsego W -H Members to reimburse the difference to convert to underground over a 3 to 5 year period • Line item on bill may read"Gty of Otsego Non -Standard Improvements" Policy Considerations a Local Government Units that request W -H to build Special Facilities in excess of our designated standard installation, are responsible for the excess expenditures a No different than Xcel Energy and other local utilities that are regulated by the Minnesota Public Utilities Commission • similar to assessment policies in many cities -Afi Questions & viscussion Thank You for your time! Lance Hovland, VP Energy Distribution _ hC .: r< __- �r�.':!✓�'� : QFC 763-477-3105 w1i ,,!right -Hennepin c000erawe Deca Associanon Board Directers • Chris A. Lantto, Chair Annanaclf—AN March 10, 2003 • Thomas B. Mach, Vice Ciair MapieGrove. MN Mr. Ron Wagner, PE •Dale F.jam, Secretarp•Treasurer Hakanson Anderson Assoc., Inc. Buffalo. :MN 3601 Thurston Avenue, Suite 101 •Timothy L.Young, Anoka, MN 55303 Annandale. ,MN • Butch A. Lmdenielser. ear Ron : Monticello, .MN •Burton R.Horsch. Thank you for your letter regarding the City of Otsego's HowardLaxt—VIN request for Wright -Hennepin Cooperative Electric Association •Sandra M.Hunz, (W -H) to replace two segments of the existing overhead Minnttnsta..IAN power line along the South side of 85,h Street with •Donald A.Lucas, underground wire to accommodate the upcoming bike Movie Grote, MN path project. Your letter referenced various sections out of Con. 1. the City of Otsego's ordinances regarding the relocation of Corcoraan. MN utilities in the City's right-of-way, and also your previous President & CEO verbal request to W -H's Wayne Bouernschmitt. • Mark F. Vogt, Aunandalt..MN W -H fully understands your request, but for your future planning purposes and discussions with the City of Otsego, please consider the following: (1) Regardless of whether W -H installs underground or overhead lines, seventeen (17) of the twenty four (24) poles in conflict will need to be re -located to the new road Right Of Way (ROW) easement and interconnected with existing distribution lateral tap lines. These are used to feed individual homes, transformers, and lines serving residential neighborhoods. (2) Only a portion of the bike path construction project will require re -location of W -H overhead wires and poles. Specifically, 22 spans of wire (24 poles, connected by 3 phase wire) are in the path of the proposed bike path (4,650 feet) WASecurity 11� UA Response UJJLINK,* HIM 1-;� an ■.- 'I+n . 9_68..J uu eC37_1-e Un a Ma"s 761.477.3000 a Tali irwo 1.200.042.4667 • 24 Now Fa: 763.477.3054 (3) Two main segments are impacted: one segment West of Odean (South side of 85th St.) and one segment East of Odean (South side of 85'h St.). (4) All W -H lines on the North side of 85th Street are not in the path of construction and will not need to be moved or converted to underground wire. When determining the best balance of aesthetics, reliability, and cost for W -H members I offer the following information for you to present to the City of Otsego staff: Aesthetics Even if we install underground wire, most of our existing utility poles will need to be re -installed in a new dedicated utility easement, thus the aesthetic gain of underground wire will be very limited. Although, overhead wire paralleling the bike path will be eliminated, installation of numerous pad -mount switchgear cabinets (green boxes) will be required to allow for the connection of underground to the existing overhead wire taps. Reliability Outages on the overhead wire along 851h Street have been limited. In fact, outages specific to line along this two mile stretch, accounted for only one outage since 1997. With the installation of two underground segments on the South side of 85th Street, W -H does not expect to see any justifiable reliability improvement for our customers. Cost Relocating the poles to the edge of your newly acquired right of way will cost W -H $28,800. The benefit to the City of Otsego is W -H will pick up the entire cost of the overhead line relocation. W -H's estimated cost to convert the two segments to underground wire totals $148,623. This estimate is based on your field visit with W -H's Wayne Bauernschmitt and is requested by the City of Otsego. Alternatives With the limited reliability and aesthetic improvements of converting the two line segments in question to underground, we hope that you and officials of the City will consider the following two options: Option #1: Allow W -H to relocate poles and remain overhead By simply relocating the poles to the outer edge of the City of Otsego's newly acquired right of way along 85th Street, W -H can save our membership an estimated $118,877. Option #2: City of Otsego offset the cost difference of underground wire install I -f -underground wire is the absolute desire of the City of Otsego for aesthetic and other related purposes, we ask that the City of Otsego pay W -H a "Contribution in Aid" in an amount equal to $118,877. Given the circumstances described above, we have a unique opportunity to accomplish the reliability and financial goals of W -H, and also meet the C'ty of Otsego's desire to provide a safe and affordable bike path for the community by proceeding with Option #1. We hope that you and officials at the City of Otsego will discuss and consider the cost -vs -benefit of these two options. It has always been a pleasure working with you and your firm on of the various projects with the City of Otsego. I would be happy to meet with you to further discuss this matter with you in further detail at your earliest convenience. Please contact me at (763) 477-3105 to set up a time we can meet. Sincerely, Lance Hovland VP, Energy Distribution Cc: Tony Nelson, Engineering Service Manager Wayne Bauernschmitt, Design Engineer right -Hennepin Cooperative Electnc Associanon Board Directors • Chris A. Lantto. Chair Annandale. MN • Thomas B. Mach, Vice Chair Mapte Grove, MN • Dale F. Jans, Secretary -Treasurer Bufto, JVN • Timuthv L. Young, ,4linandaie, MN • Butch A. Lindentelser, Monticello, MN • Burton R. Horsch. Howard like, MN • Sandra M. Hunz, Minnetrista, MN • Donald A. Lucas, Maple Grove, MN Enck J. Heinz, Corcoran, MN President i CEO • Mark F. Vogt, Annandale, MN March 27, 2003 Mr. Ron Wagner, PE Hakanson Anderson Assoc., Inc. 3601 Thurston Avenue, Suite 101 Anoka, MN 55303 Dear Ron: This letter is to summarize our 3/26/03 phone conversation regarding 85th Street. I also would like this letter to serve as your reference to help clear any misunderstandings the City of Otsego may have regarding the 85th Street Northeast project. In my 3/10/03 letter to you, I communicated that there is a significant cost burden to Wright -Hennepin in meeting the Otsego city ordinances specific to the road widening project on 85th Street. For that reason, I asked that -the City of Otsego provide us a contribution in aid in the amount of $118,877 to relieve the difference between our least cost method (moving poles) and the City's request (build new line underground). Your comment to me was that the City's direction was for us to collect the additional costs from our rate base. With that information, we are considering collecting these dollars through our rates from electric customers that are also accountable for the City's ordinances. This decision will likely be presented to the W -H Board of Directors in April for consideration. You stated that the Otsego City Administrator threatened to raise the City's permit fees to Wright -Hennepin regarding work in your right-of-way to make up the difference on these costs. As I discussed though, the City of Otsego would have WiiSecurit_ T MA Res�nM PO Box 330 • Rockford MN 55373.0330 • Meho 763.477.3000 • Toll Free 1.800.943.1667 • 24 Hour Fox 763.477.3054 no direct costs whatsoever with the proposed method of Wright -Hennepin cost recovery. Instead, the benefiting Wright -Hennepin customers would be directly paying for the costs through a separate line item on their electric bill. Any threat of raised permit fees from the City of Otsego due to this approach has no cost basis, and would be interpreted by W -H as rejecting accountability for the cost burden the City's ordinances put on utilities like us. You stated that there were questions on what the line item on the bill would say. Our thought is to be as descriptive as possible in telling our customers exactly what the charge is for, using a limited amount of alpha- numeric characters (30). Because these customers are also your customers, we would consider your input on this description as well. Thank you for your cooperation in reaching a final design on this project that works best for your customers and ours. We hope the outcome of these discussions will conclude with achieving the environmental, aesthetic, and financial goals of both W -H and the City of Otsego customers. Sincerely Lance Hovland VP Energy Distribution a E�, ol, oillill 11111, ol SSE? 29' 25.2 i8 hpNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 15` Revised Sheet No. 27 5.2 GENERAL EXTENSION (Continued) Refundable payments will be in the amount determined by subtracting from the total estimated installation the anticipated revenue adjusted by the revenue factor, as set forth in Section 5.1, STANDARD INSTALLATION. For each additional customer served directly from the original contracted extension within five years from the date of its completion, the person who made the advance payment will receive refunds based on the revenue to be received from the additional customer served from the extension and the costs required to serve such customer. The total of such refunds will in no event exceed the total advance payment. Refunds will be made only for line extensions on private property to a single customer served directly from the original contracted facilities. 5.3 SPECIAL FACILITIES A Definitions For the purposes of Section 5.3 and the City Requested Facilities Surcharge Rider, the following definitions apply: "Distribution Facilities" are defined as all primary and secondary voltage wires, poles, insulators, transformers, fixtures, cables, trenches, ductlines, and other associated accessories and equipment, including substation equipment, rated 35kV class and below, whose express function and purpose is for the distribution of electrical power from the Company's distribution substation directly to residential, commercial, and/or industrial customers. Distribution Facilities exclude all facilities used primarily for the purpose of transferring electricity from a generator to a substation and/or from one substation to another substation. As such, Distribution Facilities serve only customers on the primary and secondary rates of the Company. 2. "Transmission Facilities" are defined as all poles, towers, wires, insulators, transformers, fixtures, cables, and other associated structures, accessories and equipment, including substation equipment, rated 25kV class and above, whose express function and purpose is the transmission of electricity from a generator to a substation or substations, and from one substation to another. "Municipality" is defined as any one of the following entities: a county, a city, a township or other unit of local government. 4. "City" is defined as either a statutory city or a home rule charter city consistent with Minn. Stat. Sections 410.015 and 216B.02, Subd. 9. (Continued on Sheet No. 6-27.1) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President — Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:\RA\Rates\Current\Mn-elec\Me-6-27-rOl.doc W J%W Northern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) 5.3 SPECIAL FACILITIES (Continued) A Definitions (Continued) Section No. 6 Original Sheet No. 27.1 11 "Standard Facilities" are those facilities whose design or location constitute the reasonable and prudent, least -cost alternative that is consistent with the existing electric system configuration, will meet the needs of the Company's customers and will maintain system reliability and performance under the circumstances. In determining the design or location of a "Standard Facility", the Company shall use good utility practices and evaluate all of the circumstances surrounding the proposal, including (i) public and employee safety in the installation, operation and maintenance of the facility, (ii) compliance with the National Electrical Safety Code, other applicable engineering standards and electric utility norms and standards, (iii) electric system reliability requirements, (iv) the presence, age, condition and configuration of existing facilities in the affected area, (v) the presence and size of existing right-of-way in the affected area, (vi) existing topology, soil, spacing, and any environmental limitations in the specific area, (vii) existing and reasonably projected development in the affected area, (viii) installation, maintenance, useful life and replacement cost factors, and (ix) other relevant factors under the particular circumstances. 6. "Special Facilities" are non-standard facilities or the non-standard design or location of facilities as provided in Section 5.3(B). "Excess Expenditure" is defined as the total reasonable incremental cost for construction of Special Facilities, including: the value of the un -depreciated life of existing facilities being removed and removal costs less salvage; the fully allocated incremental labor costs for design, surveying, engineering, construction, administration, operations or any other activity associated with said project; the incremental easement or other land costs incurred by the Company; the incremental costs of immediately required changes to associated electric facilities, including backup facilities, to ensure reliability, structural integrity and operational integrity of electric system; the incremental taxes associated with requested or ordered Special Facilities; the incremental cost represented by accelerated replacement cost if the Special Facility has a materially shorter life expectancy than the standard installation; the incremental material cost for all items associated with said construction, less salvage value of removed facilities, and any other prudent costs incurred by Company directly related to the applicable Special Facilities. N (Continued on Sheet No. 6-27.2) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President — Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:1RA'Rates\CurrentlMn elecV.te 6 27-t.doc KSPNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) 5.3 SPECIAL FACILITIES (Continued) B. General Rule Section No. 6 Original Sheet No. 27.2 When the Company is requested by a customer, group of customers, developer, or Municipality to provide types of service that result in an expenditure in excess of the Company designated standard service installation as provided under Section 5.1, STANDARD INSTALLATION, or designated standard Distribution Facilities or Transmission Facilities under Section 5.3 (A)(5) the requesting customer, group of customers, developer, or Municipality will be responsible for such Excess Expenditure, unless otherwise required by law. Common examples of Special Facilities include duplicate service facilities, special switching equipment, special service voltage, three phase service where single phase service is adequate, excess capacity, capacity for intermittent equipment, trailer park distribution systems, underground installations to wood poles, conversion from overhead to underground service, specific area undergrounding, other special undergrounding, location and relocation or replacement of existing Company facilities. 2. When requested under Section 5.3 (B)(1) the Company will evaluate the circumstances and determine the Standard Facility(ies) that would be appropriate to the particular situation. From this evaluation, the Company will determine the facilities design/configuration for the proposed project that meets the definition of a Standard Facility. This design/configuration shall constitute the Standard Facility for purposes of determining the Excess Expenditure associated with any requested or ordered Special Facility, including a Special Facility subject to a City Requested Facilities Surcharge or other rate surcharge. Subject to the requirements of applicable law, and subject to the Company's previously scheduled or emergency work, the Company will initially install Special Facilities or will replace, modify or relocate to a Company -approved location or route its existing Distribution Facilities or Transmission Facilities (a) upon the request of a customer, a group of customers, developer, or upon request or lawful order of a Municipality if the Company determines the requested or ordered Special Facilities will not adversely affect the reliability, structural integrity, ability to efficiently expand capacity or operational integrity of the Company's Distribution Facilities or Transmission Facilities; and (b) the requesting or ordering customer, group of customers, developer, or Municipality arranges for payment of the Excess Expenditures under Section 5.3(E)(1) or 5.3(E)(2), or a requesting or ordering City elects that the Excess Expenditures for undergrounding of Distribution Facilities be recovered by surcharge under Section 5.3(E)(3). (Continued on Sheet No. 6-28) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President— Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 FARA\Rates\Current%Mn eled M 6 27.2doc T T N Northern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) 5.3 SPECIAL FACILITIES (Continued) C. Special Facilities In Public Right -Of -Way Section No. 6 1st Revised Sheet No. 28 1. Whenever a Municipality as a governing body of public right-of-way orders or requests the Company to replace, modify or relocate its existing Distribution Facilities or Transmission Facilities located by permit in said public right-of-way to the extent necessary to avoid interference with construction on said public right-of-way, such facilities will be replaced, modified or relocated at Company expense, provided the construction is the Standard Facility(ies) installation designated by the Company. 2. If the Municipality requests a facility other than the standard facility(ies) determined under 5.3(C)(1), the Company will provide the Municipality notification of the Excess Expenditure compared to the Standard Facility. If the Municipality requests or orders a type of construction with cost in excess of the Company designated standard construction, recovery of such Excess Expenditures will be subject to Section 5.3(E). 3. Except in emergencies, the Company has no obligation to commence initial construction of new Special Facilities, or to commence construction for replacement, modification, reconstruction or relocation of existing facilities, until the Company receives a permit, or other written authorization, from the Municipality (or its designee) having jurisdiction over use of the applicable public right-of- way, ightof- way, authorizing the construction at a Company -approved reasonable location within the public right- of-way or at a location established by lawful order of the Municipality. 4. The Company reserves the right to require an order from a Municipality if the Company determines the requested Special Facilities constitute an improvement primarily for the benefit of a landowner or other group and only an incidental benefit to public use of the right-of-way. The Company also reserves the right to challenge the lawfulness of a Municipality's order. D. Underground Facilities Reguirements The following provisions apply when replacing overhead facilities with underground facilities: 1. The customer, at customer's expense, must engage an electrician to adapt the customer's electrical facilities to accept service from Company underground facilities. 2. The Company will allow reasonable time for the customer to make the necessary alterations to their facilities, before removal of the existing overhead facilities. The customer, group of customers, developer or Municipality must provide Company reasonable notice of the undergrounding request so Company may efficiently plan and install such facilities. (Continued on Sheet No. 6-29) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President — Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:VRAVRatestCurrent\Mn_eled _6_26_A1.doc W 1► W RPNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) 5.3 SPECIAL FACILITIES (Continued) D. Underground Facilities Requirements (Continued) Section No. 6 1s` Revised Sheet No. 29 3. Perpetual easements will be granted Company at no cost to the Company whenever any portion of the underground distribution system is located on private land. Said private easements also will allow the Company access for inspection, maintenance, and repair of Company facilities. 4. The Company must receive, by franchise or permit, full access to its facilities installed underground for the purpose of inspection, maintenance, and repair of such facilities, such right of access to include the right to open public ways. 5. The Municipality will give sufficient notice and will allow the Company sufficient time to place its facilities beneath public ways while the same are torn up for resurfacing. The Municipality shall provide Company with access to the torn up public ways during such period so that Company will have unobstructed use of sufficiently large sections of the public ways to allow installation of the underground facilities in an economic manner. 6. Secondary voltage service supplied from an underground distribution lateral installation will require that the customer install, own, and maintain necessary conduits and secondary service conductors or bus duct to a point designated by Company within or adjacent to the secondary compartment of the transformer or vault. Company will make final connection of customer's secondary service conductors or bus duct to Company's facilities. 7. Secondary voltage service supplied from underground secondary service conductors require that the customer install, own, or maintain necessary conduits on private property to a point designated by the Company at or near the property line. The secondary service conductors usually will be installed by the customer in the customer's conduit, however, in some installations it may be preferred to have Company provide a continuous installation from the Company facilities through the customer conduit to the customer's service equipment. In these installations the customer must pay the total installed cost of the Company's cable installed on private property. The Company will make the final connection of customer's secondary service connectors to Company's facilities. 8. The customer, group of customers, developer or Municipality will be subject to any charges imposed as a result of the conditions set forth in Section 5.1, STANDARD INSTALLATION and charges for Special Facilities as provided in this Section 5.3. (Continued on Sheet No. 6-29.1) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President - Minnesota & Dakotas Docket No. E0021M-99-799 Order Date: 11-06-02 F:\RA\Rates\Current\Mn-elec\Me-6-29-rOl.doc T T OF, Northern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) 5.3 SPECIAL FACILITIES (Continued) Section No. 6 Original Sheet No. 29.1 E. Special Facilities Payments N 1. Where the requesting or ordering party is required to prepay or agrees to prepay or arrange payment N for Special Facilities, the requesting or ordering party shall execute an agreement or service form T pertaining to the installation, operation and maintenance, and payment of the Special Facilities. Payments required will be made on a non-refundable basis and may be required in advance of N construction unless other arrangements are agreed to in writing by the Company. The facilities N installed by the Company shall be the property of the Company. Any payment by a customer requesting or ordering party shall not change the Company's ownership interest or rights. Payment for Special Facilities may be required by either, or a combination, of the following methods as prescribed by the Company: a single charge for the costs incurred or to be incurred by the Company due to such a special installation or a monthly charge being one -twelfth of Company's annual fixed costs necessary to provide such a special installation. The monthly charge will be discontinued if the special facilities are removed or if the requester eventually qualifies for the originally requested Special Facilities. 2. Where Special Facilities are requested or ordered by a Municipality which is not a City, or in circumstances other than those addressed in Section 5.3(E)(3), and payment is not made or arranged by the Municipality, the Company may seek approval of the Commission to allow the Excess Expenditures to be the responsibility of the Company's customers residing within the Municipality and may seek approval by the Commission pursuant to Minn. Stat. Chap. 216B to allow recovery of such expenditures from those customers through a rate surcharge or other method. T N Company will provide notice to an affected Municipality of any miscellaneous rate filing by Company under Minn. Stat. Sect. 216B.16, Subd. 1, to establish a Special Facilities surcharge applicable to customers in such Municipality. Customers in the applicable Municipality will be notified of (a) the implementation of the Special Facilities surcharge through either a bill message or bill insert during the month of implementation of such surcharge, and (b) any change in the surcharge. N Continued on Sheet No. 6-29.2) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President— Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:%RA\Rates\Curtent\Mn_elecVvle_6 29-t.doc WF: Northern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK- MPUC NO.2 GENERAL RULES AND ERGULATIONS (Continued) SPECIAL FACILITIES (Continued) E. Special Facilities Payments (Continued) Section No. 6 Original Sheet No. 29.2 3. Where undergrounding of Distribution Facilities as a Special Facility is ordered by a City, and payment for excess expenditure is not made or arranged by the City, the Excess Expenditures will be recovered from the Company's customers located in the City through a rate surcharge set forth in Section 5.3 (F) and the City Requested Facilities Surcharge Rider subject to the following conditions: a. The Company shall provide written notice to the City containing the following: L the estimated total excess expenditures required for the designated City undergrounding project and an estimate of the resulting surcharge; notice to the City Clerk that the City has sixty (60) days from it receipt of the notice to file with the Commission an objection to the proposed surcharge under Minnesota Statutes 2168.17 or other applicable law. The notice shall contain a brief statement of facts and tariff or other legal authority on which the Company bases its right to surcharge the ratepayers located in the City. Within the sixty (60) day period noticed by the Company, the City may give written notice to the Company of its intention to pay all, a portion or none of the estimated Excess Expenditures, or otherwise enter into an agreement with the Company regarding payment of any Excess Expenditures. If the City does not respond in writing within the sixty (60) days, it is deemed to have elected not to pay any portion of the Excess Expenditures and will have waived its right to object to the Company's right to surcharge ratepayers in the City for the Excess Expenditures. Such failure, however, is not a waiver of the City's right to object to the Company's Excess Expenditures surcharged to ratepayers in the City, which objection may be exercised pursuant to other applicable law. c. A rate surcharge set forth in Section 5.3(F) and the City Requested Facilities Surcharge Rider may -be used to recover the excess Expenditures of Distribution Facilities when such projects are initiated and controlled by a city even if the city does not act within its police powers to require the undergrounding project to be completed and the City and Company mutually agree in writing to using such a surcharge. (Continued on Sheet No. 6-29.3) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President - Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:\RA\Rates\Current\Mn-elec\Me-6-29-2.doc N RSPNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) SPECIAL FACILITIES (Continued) E. Special Facilities Payments (Continued) Section No. 6 Original Sheet No. 29.3 d. The City may bring its objection to the proposed surcharge to the Commission by filing a statement of objection with the Commission and serving the Company within sixty (60) days. An objection proceeding shall not halt or delay the project, except for good cause shown. Notice and implementation of the surcharge shall be stayed until the Commission or a court of competent jurisdiction issues a final order or judgment. e. Nothing in this tariff is intended to establish or limit the rights of a Company customer that is a member of the class of customers surcharged or proposed to be surcharged from pursuing its rights under applicable law. Customers in the applicable City will be notified of: (i) the implementation of a City Requested Facilities Surcharge either through a bill message or a bill insert during the month preceding the month the surcharge is commenced; and (ii) any change in a preexisting surcharge. The Notification described in (i) and (ii) shall be approved by the Department. The Company shall provide the Department and City the proposed notice to customers no less than sixty (60) days prior to the first day of the month in which the Company intends to notify customers of the surcharge. (Continued on Sheet No. 6-29.4) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President - Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:\RA\Rates\Current\Mn-elec\Me-6-29-3.doc N RSPNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued) SPECIAL FACILITIES (Continued) Section No. 6 Original Sheet No. 29.4 Costs of Special Facilities Recovered by City Reauested Facilities Surcharae The Excess Expenditure required for any Special Facility undergrounding of Distribution Facilities requested or ordered by a City shall be subject to surcharge in accordance with the provisions of this section and the City Requested Facilities Surcharge (CRFS) Rider, if the City does not prepay or otherwise arrange payment. The surcharge shall commence on such date as determined by the Company, but no earlier than the first full billing month following at least 60 days notice to the applicable City of the planned implementation date of a surcharge. City Project Tracker Account. The Company will establish a City Project Tracker Account for the applicable City in order to track project cost recovery through customer collections. The initial balance in the Tracker Account will be the Company -determined Excess Expenditure for the applicable Special Facilities. Excess Expenditures for subsequent, additional City requested or ordered Special Facilities may be added to the Tracker Account balance at any time to the extent additional Excess Expenditures are incurred by Company. The Tracker Account balance shall be determined as follows: a. The total Excess Expenditure ("EE") for each City Special Facility undergrounding project to be recovered through a CRFS surcharge. The EE will be adjusted to reflect actual Company costs and any direct payments made by the City for the designated construction project; b. Plus the Carrying Charge ("CC") on the unrecovered or over -recovered monthly balance in the Tracker Account based on the overall rate of return from the Company's most recent electric general rate case decision; and c. Less the Recovered Project Costs ("RPC") equal to the actual monthly amounts billed to customers in the applicable city through the CRFS Rider, subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. (Continued on Sheet No. 6-29.5) Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President - Minnesota & Dakotas Docket No. E002/M-99-799 Order Date: 11-06-02 F:\RA\Rates\Current\Mn-elec\Me-6-29-4.doc N N hNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO.2 GENERAL RULES AND REGULATIONS (Continued Section No. 6 Original Sheet No. 29.5 SPECIAL FACILITIES (Continued) F. Costs of Special Facilities Recovered by City Requested Facilities Surcharge (Continued) 3. The Company may delay implementation of a surcharge for a City Project Tracker Account until the minimum surcharge amount provided in the CRFS Rider is reached. Any under or over recovery of the Tracker Account balance in the last month of the final Recovery Period will be expensed. The Company will limit over -recoveries to no more than $0.05 per customer at the time the Tracker Account is terminated. 4. Record Access and Reporting Requirements. The Company's records associated with a City's Tracker Account shall be available for inspection by such City at reasonable times. If requested by a City, the Company shall provide a report on the status and balance of the City Project Tracker Account as follows: a. whenever Excess Expenditures for requested or ordered Distribution Facilities undergrounding are added to the Tracker Account for a designated or new City project, b. on or before the last business day of the month following the final month of the Recovery Period, or c. annually if the Recovery Period is greater than 12 months. W 5. The surcharge for a particular Special Facility Distribution Facilities undergrounding project maybe of a different design than set forth in the City Requested Facilities Surcharge Rider if approved in advance by Commission order in response to a rate filing by the Company under Minn. Stat. Section 216B. 16, or in response to a complaint filed by the applicable City under Minn. Stat. Section 216B.17. N Date Filed: 06-11-02 By: Kent T. Larson Effective Date: 11-06-02 State Vice President - Minnesota & Dakotas Docket No. E002/%99-799 Order Date: 11-06-02 F:\RA\Rates\Current\Mn-elec\Me-6-29-5.doc UPNorthern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet No. 30 Relocated from MPUC No. 1 Sheet No. 6-16 5.4 AUTOMATIC PROTECTIVE LIGHTING SERVICE When requested by a customer, the Company will provide area and directional units service to that customer, except a municipality or other governmental body if the service would be used for street lighting purposes. The Company will own, operate, and maintain the lighting unit including the fixture, lamp, ballast, photoelectric control, mounting brackets, and all necessary wiring. The Company will furnish all electric energy required for operation of the unit at the monthly rate per unit provided in the Company's rate schedule for Automatic Protective Lighting Service. The Company will install a lighting unit on an existing utility owned wood pole upon which the Company's 120 volt or 277 volt lines are attached without an additional charge. Additional wood poles, overhead lines, and underground services are available upon payment of the applicable one-time charge. Optional monthly payments are available for requests for wood poles and overhead lines as listed below. A removal charge in the amount stated will be made if the customer discontinues service in less than three years or requests temporary service. Optional Early Removal or Item Monthly Payment Temporary Service Charge Area Units 100 Watt High Pressure Sodium $75.00 per unit 250 Watt High Pressure Sodium $95.00 per unit Directional Units 250 Watt High Pressure Sodium $100.00 per unit 400 Watt High Pressure Sodium $100.00 per unit Wood Pole 35 foot $7.00 per pole $225.00 per pole Overhead Span $3.90 per span $150.00 per span Guy $65.00 each Anchor $60.00 each (Continued on Sheet 6-31) Date Filed: 06-30-97 By: James M. Ashley Effective Date: 02-03-98 General Manager, Marketing and Sales Docket No. E,G002/M-97-985 Order Date: 02-03-98 J:\Projects\NSP1SenicePolicy\Ratebook\PSF\Ratebook\Mn-elec\M E-6-30.DOC R� Northern States Power Company Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 GENERAL RULES AND REGULATIONS (Continued) Section No. 6 Original Sheet No. 31 Relocated from MPUC No. 1 Sheet No. 6-17 5.5 SERVICE CONNECTIONS The customer, without expense to the Company, will grant the Company right-of-way on his premises for the installation and maintenance of the necessary distribution lines, service conductors, and appurtenances, and will provide and maintain on the premises, at a location satisfactory to the Company, proper space for the Company's transformers, metering equipment, and appurtenances. The service conductors as installed by the Company from the distribution line to the point of connection with the customer's service entrance conductors will be the Company's property and will be maintained by the Company at its own expense. The customer will provide for the safekeeping of the Company's meters and other facilities and reimburse the Company for the cost of any alterations to the Company's lines, meters, or other facilities necessitated by customer and for any loss or damage to the Company's property located on the premises. The exception is when such loss or damage is occasioned by the Company's negligence or causes beyond the control of the customer. 5.6 TEMPORARY SERVICE The following special requirement is prescribed to govern temporary service: A customer taking temporary service (less than five years) will pay the rate applicable to the class of service rendered and will pay in advance the Company's calculated cost, figured on a time and material basis, of the installation and removal of the facilities, including the meter required to furnish the desired service, less the salvage value of such facilities. Date Filed: 06-30-97 By: James M. Ashley General Manager, Marketing and Sales Docket No. E,G002/M-97-985 JAProjects\NSP\Service Poli cylRatebook\PSF\Ratebook\Mn- elec\M E-6-31.DOC Effective Date: 02-03-98 Order Date: 02-03-98 STEM 4_7_ MEMO Date: April 24, 2003 To: Mayor & Council From: City Administrator Mike Robertson Re: Estimated Costs of Establishing a Municipal Liquor Store I have looked at a variety of costs involved in establishing a municipal liquor store. Below are estimates of those costs. If the City Council decides to proceed with starting a liquor store, staff would continue to refine these cost estimates. LAND ACQUISITION The site identified as the prime spot for a municipal liquor store is the northeast corner of Highway 101 and County Road 39, where the old Highway 101 Market corn stand is located. This site is currently owned by Otsego Land Company and represented by LandCor, Inc. LandCor is not supportive of the City establishing a liquor store on this site because of their time and effort spent recruiting MGM to establish a liquor store on another part of their development. Bob Fields of LandCor has quoted me a price of $1,000,000 an acre, or $23 a square foot, for a negotiated sale. The City could possibly condemn the land for less. If the City chooses condemnation, we would have to hire an appraiser to determine land value, as well as incur legal costs related to the condemnation. CONSTRUCTION COSTS If the City were to achieve a negotiated sale with LandCor, part of that sale, as it is for all of the Waterfront development property, would be that LandCor's construction arm would have to construct the building. Bob Fields of LandCor has told me they have estimated the construction cost of the current retail building which would house the MGM Liquor Store at $125 per square foot. That does not include the finishes, which are floor, equipment and shelving, which they estimate at an additional $5-10 per square foot. Therefore, LandCor's estimated construction cost today would be $130-135 per square foot. These cost estimates are based on meeting the City's building standards for the Waterfront development, which are currently higher than the City's building standards for any other commercial area in Otsego. The City of Rogers recently finished a new municipal liquor store. According to their finance director, the building was 10,800 square feet and the costs were $865,000 for construction and $65,000 for finishes, which translates to a cost of approximately $86 per square foot. STOCKING COSTS Stocking costs are the costs of buying the initial inventory for the liquor store. Rogers did not have much stocking costs for their new store because they transferred the inventory from their existing store. I have contacted a variety of area municipal liquor stores, there is a range of inventory cost of $30 to $40 per square foot. Based on these estimates, the cost to stock a new 10,000 square foot liquor store would be approximately $300-400,000. TOTAL CONSTRUCTION COSTS Using LandCor's estimates, which at this point are the most detailed and probably the most conservative, leads to the following estimates. Land Costs $1,000,000 Construction Costs (10,000 SF Bldg) $1,350,000 Stocking Costs $ 400,000 Total Startup Costs $2,750,000 OPERATING COSTS Operating costs are one of the keys to the level of profit made by a liquor store. A good manager is necessary to balance keeping operating costs as minimal as possible versus having enough employees to 2 adequately serve customers. I have reviewed the operating costs reported by municipal liquor stores to the State to generate an estimate for Otsego. The latest figures available from the State are for the year 2000. I have also tried to compare those operating costs with the size of the liquor stores for nearby cities to get a sense of how the size of store effects operating costs. The range is about 11-14% of total sales is the average yearly operating cost. A store that did $3,000,000 to $3,500,000 in total sales would have operating expenses within the range of $350,000-$500,000 on a yearly basis. DEBT SERVICE To finance the construction of a liquor store the City would borrow money on the bond market. Using the construction cost estimates above, I have had Paul Donna of Northland Securities, the City's Bond Consultant, estimate the size of the bond issue and debt service required. As part of the bond issue estimate, Paul Donna has added $850,000, which represents a year of operating expenses plus bonding costs. This would finance the liquor store through its startup phase. Based on these estimates, Paul Donna has estimated an average debt service yearly payment of $350,000 over the 15 year life of the bond. If the City did a 10 year bond, the average yearly debt service would be $475,000. POTENTIAL REVENUE The revenue is the most attractive aspect of a municipal liquor store. Profit can be measured a variety of ways but the best measurement is profit, before transfers, as a percentage of sales. This measures how efficiently a liquor store is managed. As reported to the State of Minnesota, the average municipal liquor store (off -sale only) makes a profit of 9.4% of sales (2000). The range for the communities in our area varies from 8% to 14%. 3 Based on the estimated construction costs, operating costs, and debt service, the City of Otsego would need sales of at least $3,500,000 to make a profit. These figures are conservative, so I expect as they are refined that the amount of sales necessary to make a profit would come down. The City's bond advisor Paul Donna has recommended that the City commission a market analysis to estimate the market available. He is aware of a community who did this recently for $4,000. As an example, sales for nearby cities are listed below. For Rogers, their new store opened in October, 2002 and is averaging about $5,000-$6,000 a day in sales so far. For a whole year that would be about $2- 2,200,000 in sales. Rogers had $1,307,000 in sales in 2000, with profits of 56,806. Elk River -$3,788,000 in sales in 2000, $4,100,000 in sales in 2002. Profits were $490,000 in 2000, $534,000 in 2002. Big Lake -$1,744,611 in sales in 2000, $1,960,000 in sales in 2002. Profits were $160,000 in 2000, $***** in 2002. Monticello -$2,619,955 in sales in 2000, $3,113,000 in sales in 2002. Profits were $$359,000 in 2000, $345,000 in 2002. LEGAL ISSUES City Attorney Andy MacArthur has prepared a memorandum and will be ready to discuss the legal issues related to a municipality starting a liquor store in Minnesota. POLITICAL ISSUES Proposed State Laws - A bill at the State Legislature allowing wine in grocery stores was defeated this year. A bill at the State Legislature to remove all restrictions on private competition with municipal liquor stores was defeated this year. A bill at the State Legislature to prevent municipalities from owning liquor stores was laid over and the State Auditor's Office will probably do a study on City owned N enterprises. A bill at the State Legislature to declare an inverse condemnation when a local political subdivision decides to provide goods and services previously provided by the private sector is still alive. Obviously, if any of these laws were enacted it would have a major impact on the City's ability to start, maintain, or profit from a liquor store. These bills will keep coming back in the future. The wine in grocery stores lobby is particularly persistent and well funded. The legislators pushing the other bills have strong feelings about them as well and are not likely to give up. The Council should take this into consideration when making a decision. Shutting Down Existing Private Liquor Stores - City Attorney MacArthur will address the State law regarding a municipality's ability to shut down existing private liquor stores when it establishes a municipal liquor store. Discussion of this subject has already caused strong feelings among the current liquor store owners. SU14 ARY Otsego could be expected to make money in a well managed store located on the northeast corner of Highway 101 and County Road 39. That money would not be available in any large quantity for the first few years due to start up costs and paying debt service. Once debt service was paid after 10-15 years, profit should reach a very nice amount, assuming good management and assuming no changes in laws governing municipal liquor stores or their competition. However, assuming no changes in those laws is not a safe assumption given the current political trends, and most changes currently being discussed would have at a minimum an adverse impact on revenue generated, while some proposed laws would shut down municipal liquor stores entirely. 5 ITEM 5-7_ CLAIMS LIST CITY COUNCIL MEETING APRIL 28, 2003 TO: Judy Hudson Attached is the Claims List for the City Council. For more details, please refer to the Check Detail Registers. If you have any questions regarding this service, please let me know. Claims Register 04-24-2003 $ 89,005.59 MINUS VOID CK -57,597.44 # 38266 GRAND TOTAL $ 31,408.15 If you have any questions or if you would like to review this list further, please let me know. Kathy Grover Bookkeeper CITY OF OTSEGO 04/24/03 9:08 AM *Check Summary Register© Page 1 APRIL 2003 FILTER: None Name Check Date Check Amt 10100 BANK OF ELK RIVER UnPaid AFFORDABLE SANITATION UnPaid AGGREGATE INDUSTRIES $173.25 UnPaid AIRGAS, INC. $321.12 UnPaid ARCON CONSTRUCTION CO $216.13 UnPaid ARROW TERMINAL LLC $11,132.97 UnPaid BOISE CASCADE OFFICE PRODUCTS $35.95 UnPaid ECM PUBLISHERS INC $54.37 UnPaid FORTIS BENEFITS INSURANCE CO $479.40 UnPaid GOPHER STATE ONE -CALL INC $107.69 UnPaid GOVERNMENT TRAINING SERVICE $3.80 UnPaid GRANITE CITY LEASING INC $224.00 UnPaid ICMA RETIREMENT TRUST $34.02 UnPaid JACQUIE ROGNLI $422.31 UnPaid MAMA $875.00 UnPaid MEDICA $18.00 UnPaid MEL LANDWEHR CONSTRUCTION $4,564.64 UnPaid MINNESOTA LIFE $3,870.00 UnPaid MINNESOTA STATE TREASURER $106.10 UnPaid PEOPLE SERVICE INC. $2,347.00 UnPaid PITNEY BOWES $12,055.50 UnPaid PUBLIC EMPLOYEES RETIREMENT FD $100.02 UnPaid RANDY'S SANITATION $1,.73 iPaid STAN & MARY SCHUSTER $110303.11 nPaid STS CONSULTANT'S LTD $200.00 UnPaid T 8 S TRUCKING BUFFALO INC $8,348.12 UnPaid TARGET STORES $4 ,.00 UnPaid UNLIMITED ELECTRIC INC $38 $38.23 UnPald US INTERNET $1,408.38 UnPaid WRIGHT COUNTY AUDITOR -TREASURE $4995 UnPaid WRIGHT-HENNEPIN CO-OP ELECTRIC $31,755.00 UnPaid XCEL ENERGY $3, .50 UnPaid ZIEGLER INC $82 $82.27 $49.03 Total Checks $89,005.59 FILTER: None CITY OF OTSEGO 04/24/03 9:09 AM Page 1 *Check Detail Reqister© APRIL 2003 E 101-41400-347 Newsletter $875.00 2003-03 MAR/APRIL VIEW Check Amt Invoice Comment 10100.- BANK- OF. ELK- RIVER.- Un'Paid AFFORDABLE SANITATION E 201-45000-410 Rentals (GENERAL) $173.25 304043 HC UNIT Total AFFORDABLE SANITATION $173.25 npaid AGGREGATE INDUSTRIES µw::::.,:::.::::...:::::.:.,,:::,:,::..,:...,,..,:,................................. E 101-43100-370 Sand andGravel $321.12 1703722 SAND & GRAVEL Total AGGREGATE INDUSTRIES $321.12 UnpaidAIRGAS, INC. ............ E 101-43100-210 Operating Supplies (GENERAL) $61.78 105030744 OPERATING SUPPLIES E101-43100-210 Operating Supplies (GENERAL) $96.46 105037981 OPERATING SUPPLIES E101-43100-210 Operating Supplies (GENERAL) $37.83 105039401 HAZMAT E 101-43100-210 Operating Supplies (GENERAL) $20.06 105043526 OPERATING SUPPLIES Total AIRGAS, INC. $216.13 Unpaid ARCON CONSTRUCTION CO """"'" E 423-43100-530 Improvements Other Than Bldgs $11,132.97 PAY QUADAY/91ST ST Total ARCON CONSTRUCTION CO $11,132.97 UnpaidARROW TERMINAL LLC E 101 -43100-203 Supplies - General $35.95 5015088 CABLE/TIES Total ARROW TERMINAL LLC $35.95 .pad BOISE CASCADE OFFICE PRODUCTS ""' E 101-41400-201 Office Supplies $54.37 657790 OFFICE SUPPLIES Total BOISE CASCADE OFFICE PRODUCTS $54.37 UnpaidECM PUBLISHERS INC ....................................... E101-41400-350 Print/Binding (GENERAL) $62.70 143407 NOTE OF PH - GARDNER E101-41400-350 Print/Binding (GENERAL) $290.70 143776 AD FOR BIDS E 101-41400-347 Newsletter $126.00 143890 NEWS LETTER INSERTS Total ECM PUBLISHERS INC $479.40 npald FORTIS BENEFITS INSURANCE CO ............................... E101-43100-130 Employer Paid Ins (GENERAL) $40.19 PW - MAY E 101-41400-130 Employer Paid Ins (GENERAL) $67.50 ADMIN - MAY Total FORTIS BENEFITS INSURANCE CO $107.69 Unaid;:.:........................... P ,...,..:..........:... .. ... ...., ....:..:..,.:..,,.�...:,...,,:..,.,....•:.,,.....,...,.:.....:.:......,.....,....................,.:.,..:..:....:..............::..,.. GOPHER STATE ONE -CALL INC E 101-41400-310 Miscellaneous $3.80 3030615 LOCATES Total GOPHER STATE ONE -CALL INC $3.80 npaid GOVERNMENT TRAINING SERVICE ............................................................. E 101-41530-360 EducationfTraining/Conferences $99.00 BLACK 5/3 E 101-41530-360 Education/Training/Conferences $125.00 THOMPSON 5/29 Total GOVERNMENT TRAINING SERVICE $224.00 n'paidGRANITE CITY LEASING INC E 101 -41400-413 Office Equipment Rental $34.02 26 TOSHIBA FAX Total GRANITE CITY LEASING INC $34.02 ,Paid ICMA RETIREMENT TRUST E 101-41400-121 PERA $192.31 PPE 4\12 CK DTD 4\16 G 101-21705 Other Retirement $230.00 PPE 4\12 CK DTD 4\16 Total ICMA RETIREMENT TRUST $422.31 UnpaidJACQUIE ROGNLI ...................................................................................................... E 101-41400-347 Newsletter $875.00 2003-03 MAR/APRIL VIEW CITY OF OTSEGO 04/24iO3 9'09 AM *Check Detail Reqister© Page 2 APRIL 2003 E 101-43100-123 Health $1,803.11 PW - MAY E 101-41400-123 Health $2,761.53 ADMIN - MAY Total MEDICA $4,564.64 Unpaid MEL LANDWEHR CONSTRUCTION E 101-41940-402 Repairs/Maint Buildingss $3,370.00 10171 KITCHEN REMODEL E 101-41400-201 Office Supplies $500.00 10171 STORAGE SHELVING Total MEL LANDWEHR CONSTRUCTION $3,870.00 Unpaid MINNESOTA LIFE M-...�,....,.:.,:: �MM....:. ................................ E 101-41400-130 Employer Paid Ins (GENERAL) $31.50 ADMIN - MAY E 101-43100-130 Employer Paid Ins (GENERAL) $74.60 PW - MAY Total MINNESOTA LIFE $106.10 Unpaid ::::, ::pnv:.C::t:.: ::.Y�..J:vv[,:n:St t.:c^Nm,±Y2M+rcr..vvmvw.wetnxNr::..vmcm+.•+,+[.vm:r:.;,.,vnvv..vn-arn'Hiv. MINNESOTA STATE TREASURER G101-21801 BUILDING PERMIT SURCHARGE $2,347.00 1STQTR BLDGING SURCHARGE ................................ Total MINNESOTA STATE TREASURER $2,347.00 paid ........................ E 601-49400-390 Contracted Services $607.50 6744 LABOR 13.5 HRS E 601-49400-390 Contracted Services $3,007.39 6744 MONTHLY SERVICE E 602-49450-390 Contracted Services _ $8,440.61 6744 MONTHLY SERVICE Total PEOPLE SERVICE INC. $12,055.50 Unpaid PITNEY BOWES .....................:.,.:::::::.,,.::::::::.� E101-41400-413 Office Equipment Rental $100.02 4705027-AP03 POSTAGE METER Total PITNEY BOWES $100.02 Unpaid ................ PUBLIC EMPLOYEES RETIREMENT FD """"""""""' E 101-43100-121 PERA $318.19 PPE 4\12 CK DTD 4\16 E 101-41400-121 PERA $343.91 PPE 4\12 CK DTD 4\16 G 101-21704 PERA $610.63 PPE 4\12 CK DTD 4\16 Total PUBLIC EMPLOYEES RETIREMENT FD $1,272.73 npaid RANDY'S SANITATION E 101-41940-325 Garbage Service $62.16 CITY HALL E 101-43100-325 Garbage Service $40.95 PW BUILDING Total RANDY'S SANITATION $103.11 Unpaid ............................................. STAN & MARY SCHUSTER ,..:,..w :.....:..,.,::,:.:::..� .._,.......... ........ ..... ,.,... R 101-34102 SUBDIVISION FEES $200.00 LOT LINE ADJUSTMENT REFUND Total STAN & MARY SCHUSTER $200.00 Unpaid p ........... .. .................... STS CONSULTANT'S LTD E 423-43100-302 Engineering Fees $8,348.12 238772 QUADAY/91ST ST Total STS CONSULTANT'S LTD $8,348.12 Unpaid T & S TRUCKING BUFFALO INC .:.:...n, n.N M......,,............,...,..,...... ,.... E 101-43100-435 Street Sweeping $4.960.00 56 STREET SWEEPING 80 HRS .:.......................... Total T & S TRUCKING BUFFALO INC $4,960.00 Unpaid: .......,..........., n,,... TARGET STORES n..,..,,.:n.,,,:....,......n.,...,..,..,.:n..:.::...N...................,.............................„.:,,,.....,,.::.... •-•n• CITY OF OTSEGO 04/24/03 9:09 AM Page 3 *Check Detail Reqister© APRIL 2003 FILTER: None Check Amt Invoice Comment E 101-43100-203 Supplies - General $38.23 1103406443 DAWN Total TARGET STORES $38.23 UnpaidUNLIMITED ELECTRIC INC E 101-41940-403 Improvements to Bldgs $790.54 5807 KITCHEN REMODEL E 101-41940-402 Repairs/Maint Buildingss $617.84 5808 ENTRY WAY REPAIRS Total UNLIMITED ELECTRIC INC $1,408.38 npaid US INTERNET E 101-41400-390 Contracted Services $49.95 47832 MONTHLY- EMAIL/WEB Total US INTERNET $49.95 UnpaidWRIGHT COUNTY AUDITOR -TREASURE E 101-42100-390 Contracted Services $31,755.00 03-5 MAY PATROL Total WRIGHT COUNTY AUDITOR -TREASURE $31,755.00 Unpaid WRIGHT-HENNEPIN CO-OP ELECTRIC E 601-49400-390 Contracted Services $1,460.00 10468 MAINTENANCE E 602-49450-390 Contracted Services $2,137.50 10474 DEC/JAN/FEB/REPORT SEWER Total WRIGHT-HENNEPIN CO-OP ELECTRIC $3,597.50 Unpaid XCEL ENERGY E 101-43160-322 Utilities $42.50 054157132210 16935 56TH ST SEWER E 101-43160-322 Utilities $39.77 061929356010 17326 53RD ST WELL Total XCEL ENERGY $82.27 Unaid P ZIEGLER INC .... w ................. E 101-43100-220 Repair/Maint Supply (GENERAL) $49.03 080123241 SWITCH 88 GRADER Total ZIEGLER INC $49.03 10100 BANK OF ELK RIVER $89,005.59 FILTER: None CITY OF OTSEGO Payments Current Period: APRIL 2003 Batch Name 030415PAY User Dollar Amt $31,408.15 Payments Computer Dollar Amt $31,408.15 $0.00 In Balance Refer 1 AFFORDABLE SANITATION Cash Payment E 201-45000-410 Rentals (GENERAL) HC UNIT $173.25 Invoice 304043 Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Total $173.25 Refer 2 XCEL ENERGY Invoice Cash Payment E 101-43160-322 Utilities 16935 56TH ST SEWER $42.50 Invoice 0541571322100 $192.31 Cash Payment E 101-43160-322 Utilities 17326 53RD ST WELL $39.77 Invoice 0619293560100 Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Transaction Date 4/15/03 .........................................................................:.......:..................................:..............:........v.....................:..... BANK OF ELK RIVE 10100 Total $82.27 Refer 3 MINNESOTA STATE TREASURER hii•:U:i: . Cash Payment G 101-21801 BUILDING PERMIT SURCHA 1ST QTR BLDGING SURCHARGE $2,347.00 Invoice Invoice PAY 5 Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Total $2,347.00 Refer 4 PUBLIC EMPLOYEES RETIREMENT Total $11,132.87 ash Payment G 101-21704 PERA PPE 4\12 CK DTD 4\16 $610.63 invoice Refer 7 GOPHER STATE ONE -CALL INC Cash Payment E 101-41400-121 PERA PPE 4\12 CK DTD 4\16 $343.91 Invoice Cash Payment E 101-43100-121 PERA PPE 4\12 CK DTD 4\16 $318.19 Invoice Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Total $1,272.73 Refer 5 ICMA RETIREMENT TRUST Cash Payment G 101-21705 Other Retirement PPE 4\12 CK DTD 4\16 $230.00 Invoice Cash Payment E 101-41400-121 PERA PPE 4\12 CK DTD 4\16 $192.31 Invoice Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Total $422.31 Refer 6 ARCON CONSTRUCTION CO Cash Payment E 423-43100-530 Improvements Other Tha QUADAY/91ST ST $11,132.97 Invoice PAY 5 Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Total $11,132.87 <•:<.... Refer 7 GOPHER STATE ONE -CALL INC ... Cash Payment E 101-41400-310 Miscellaneous LOCATES $3.80 Invoice 3030615 Transaction Date 4/15/03 BANK OF ELK RIVE 10100 Total $3.80 Refer 8 ECM PUBLISHERS INC Cash Payment E 101-41400-350 Print/Binding (GENERAL) NOTE OF PH - GARDNER $62.70 -ivoice 143407 ransaction Date 4/16/03 BANK OF ELK RIVE 10100 Total $62.70 Refer 9 JACQUIE ROGNLI Cash Payment E 101-41400-347 Newsletter MAR/APRIL VIEW $875.00 Invoice 2003-03 04/24/03 9:02 AM Page 1 CITY OF OTSEGO Payments Current Period: APRIL 2003 Transaction Date 4/16/03 BANK OF ELK RIVE 10100 Total $875.00 Refer 11 STAN & MARY SCHUSTER Cash Payment R 101-34102 SUBDIVISION FEES LOT LINE ADJUSTMENT REFUND $200.00 Invoice Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $200.00 Refer 12 AIRGAS INC Cash Payment E 101-43100-210 Operating Supplies (GEN OPERATING SUPPLIES $96.46 Invoice 105037981 Cash Payment E 101-43100-210 Operating Supplies (GEN HAZMAT $37.83 Invoice 105039401 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $134.29 ...................................................:........................................................... Refer 13 TARGET STORES Cash Payment E 10 1 -43100-203 Supplies - General DAWN $38.23 Invoice 1103406443 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $38.23 Refer 14 ARROW TERMINAL LLC Cash Payment E 101-43100-203 Supplies - General CABLE/TIES $35.95 Invoice 5015088 ansaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $35.95 .er 15 ZIEGLER INC Cash Payment E 101-43100-220 Repair/Maint Supply (GE SWITCH 88 GRADER $49.03 Invoice 080123241 Project PW.05 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $49.03 Refer 16 MINNESOTA LIFE Cash Payment E 101-41400-130 Employer Paid Ins (GEN ADMIN - MAY $31.50 Invoice Cash Payment E 101-43100-130 Employer Paid Ins (GEN PW - MAY $74.60 Invoice Transaction Date 4/21/03 BANK OF ELK RIVE r� 10100 Total $106.10 Refer 17 STS CONSULTANTS LTD ..........:..............:.....:............................................ Cash Payment E 423-43100-302 Engineering Fees QUADAY/91ST ST $8,348.12 Invoice 238772 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $8,348,12 Refer 18 UNLIMITED ELECTRIC INC Cash Payment E 101-41940-403 Improvements to Bldgs KITCHEN REMODEL $790.54 Invoice 5807 Cash Payment E 101-41940-402 Repairs/Maint Buildingss ENTRY WAY REPAIRS $617.84 Invoice 5808 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $1,408.38 Refer 19 GRANITE CITY LEASING INC Cash Payment E 101-41400-413 Office Equipment Rental TOSHIBA FAX $34.02 -voice 26 isaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $34.02 Refer 20 PEOPLE SERVICE INC 04/24/03 9:02 AM Page 2 CITY OF OTSEGO Payments Current Period: APRIL 2003 Cash Payment E 601-49400-390 Contracted Services MONTHLY SERVICE $3,007.39 Invoice 6744 Cash Payment E 602-49450-390 Contracted Services MONTHLY SERVICE $8,44061 Invoice 6744 Cash Payment E 601-49400-390 Contracted Services LABOR 13.5 HRS $607.50 Invoice 6744 Transaction Date 4/21/03 BANK OF ELK RIVE 10100Total $12,055.50 Refer 21 ECM PUBLISHERS INC Cash Payment E 101-41400-350 Print/Bindng (GENERAL) AD FOR BIDS Invoice 143776 $290.70 Cash Payment E 101-41400-347 Newsletter NEWS LETTER INSERTS $126.00 Invoice 143890 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $416.70 Refer 22 MEDICA :..,:. Cash Payment E 101-41400-123 Health ADMIN - MAY $2,761.53 Invoice Cash Payment E 101-43100-123 Health PW - MAY $1,803.11 Invoice Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $4,564.64 ger 23 PITNEY BOWES .;ash Payment E 101-41400-413 Office Equipment Rental POSTAGE METER $100.02 Invoice 4705027-AP03 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $100.02 Refer 24 BOISE CASCADE OFFICE PRODUC Cash Payment E 101-41400-201 Office Supplies OFFICE SUPPLIES $54.37 Invoice 657790 Transaction Date _.. -.v :v.v:4: x!4i: }i:v}i}:: �.>}}}:::}}>:s}}};t-}}%!•>:;4}ii::}}i::•:t•:v-}"+C.4YJOM:<tit4JCW,vtttJ:4}AW:V(SSC:C.C:t4:t!!4:4:'v:iT}}}i::tt4iv:4r: 4/21/03 BANK OF ELK RIVE 10100 t4�w„4;St4.<trititkJ:!4:<-AVT:tMv+.nS,v:+ty Total $54.37 Refer 25 MEL LANDWEHR CONSTRUCTION n..Stv..n....v..Y...,,.n.n. , Cash Payment E 101-41940-402 Repairs/Maint Buildingss KITCHEN REMODEL $3,370.00 Invoice 10171 Cash P%Tnent E 101-41400-201 Office Supplies STORAGE SHELVING $500.00 Invoice 10171 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $3,870.00 Refer 26 WRIGHT-HENNEPW CO-OP ELECT Cash Payment E 602-49450-390 Contracted Services DEC/JAN/FEB/REPORT SEWER $2,137.50 Invoice 10474 Cash Payment E 601-49400-390 Contracted Services MAINTENANCE $1,460.00 Invoice 10468 Transaction Date 4/21/03 BANK OF ELK RIVE 10100 Total $3,597.50 Refer 27 FORTIS BENEFITS INSURANCE CO Cash Payment E 101-43100-130 Employer Paid Ins (GEN PW - MAY Invoice $40.19 —ash Payment E 101-41400-130 Employer Paid Ins (GEN ADMIN - MAY $67.50 ,voice Transaction Date 4/22/03 BANK OF ELK RIVE 10100 Total $107.69 Refer 28 GOVERNMENT TRAINING SERVICE 04/24/03 9:02 AM Page 3 CITY OF OTSEGO Payments Current Period: APRIL 2003 Cash Payment E 101 -*1530-360 Euucation/Tnainmg/cunfe T*OMpoOms/2e VOID CKoousn *125.00 Invoice Cash Payment E 101'41530'360sduoahon/T,ainmg/oonfe BLACK 5/3 BANKOFEU(RNE 10100 $99.00 Invoice Payment Transaction Date 4/22/03 BANKOFEU{R|VE 10100 Total $224.00 Refer 29 AIPGAS. INC. Transaction Date Cash ,Payment - 101-43100-210 Operating Supplies (GEN OPERATING SUPPLIES Total $321.12 o61.78 Invoice 105030744 Cash Payment E 1o1-4o1o*e10Operating Supplies (GEN OPERATING SUPPLIES $20.06 Invoice 105043526 Transaction Date *xoyou 8xwKOFELKR|VE 10100 Total $81u4 Refer 30 US INTERNET Cash P -'m_' - 101 -.--_- Contracted Services MONTHLY 'E=°.",.co m4e.95 Invoice 47832 Transaction Date 4/22/03 8ANKOF ELn R|vE 10100 Total $^y.eo Refer 31 MAMA Cash Payment E 101-41400-360 Education/Training/Confe 4/17 LUNCHEON - MIKE -.-' Invoice osu r'onuocuonData 42em3 oAmmoFELnR|vs 10100 Total *18.00 3r 10 T& S TRUCKING BUFFALO INC _�ash Payment _ 1_. __.____,,,,`,,,~~,,.y S."==. SWEEPING ""HRS $4.960o0 Invoice 56 Transaction Dam 4x22/03 BANKOF EU( R|vE 10100 Twbd $4,960.00 Refer 32 WRIGHT COUNTY AUDITOR- TREA Cash Payment E 101 -42100-390 Contracted Services MAYPATROL $31,755.00 Invoice oo'a Transaction Date wuumo BANKoF ELK n|VE 10100 Total $31,755.00 Cash Payment E 101 -41940-325 Garbage Service CITY HALL $62.16 Invoice Cash Payment s 1o1'*u1oo'o2sGarbage Service PvvBUILDING *40.95 Invoice Transaction Date 4m3m3 oAwnopsLnnwE 10100 Total *103.11 Cash Payment _ _1_1_Crimson ,,..,'..,,.,,~~` ,~,^~"""", Invoice Cash Payment o7o1'21s*nCrimson Ponds 2nd VOID cKoozna '�u1.o11 48 Invoice Cash Payment G7o1e1ysoCrimson Ponds III VOID CKoousn '$18,604.45 Invoice TmoxaohunDate 4/23m3 BANKOFEU(RNE 10100 Total Rqfer 35 AGGREGATE INDUSTRIES Payment _ _1___Sand ~.,..~e ,_.,,"""",=L $321.12 .oice 1703722 Transaction Date 4/24/03 BANKOFELKRIVE 10100 Total $321.12 04/24m9:02AM CITY OF OTSEGO Payments Current Period: APRIL 2003 Pre -Written Checks ($57,597.44) Checks to be Generated by the Computer $89,005.59 Total $31,408.15 04/24/03 9:02 AM Page 5 ITEM 6.1 L NORTHWEST ASSOCIATED CONSULTANTS, INC. 5775 Wayzata Boulevard, Suite 555, St, Louis Park, MN 55416 OF Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Daniel Licht DATE: 22 April 2003 RE: Otsego — Riverpointe Expansion NAC FILE: 176.02 — 03.10 Please be advised that the Planning Commission held a public hearing on 21 April 2003 to consider the request to amend the Comprehensive Plan to include 37 acres east of the existing Riverpointe subdivision within the east sanitary sewer service district. The Comprehensive Plan amendment is based on a development concept calling for 65 single family lots, 80 townhouse dwellings and five acres of neighborhood commercial use. Mr. Ray Baird of Orrin Thompson was present to discuss their proposal. There were no comments from the public. The Planning Commission discussion focused on the proposed townhome units from a location standpoint and in terms of overall housing stock balance. Staff noted that the timing of the townhouse uses can be controlled through zoning decisions if the Planning Commission believed the use would ultimately be appropriate. The Planning Commission also discussed the Indian burial mound on the site briefly. After closing the public hearing, the Planning Commission voted 4 to 1 to recommend approval of the applications subject to the conditions outlined below. Commissioner Shuck voted against the motion in opposition to the proposed townhouse uses. A resolution consistent with the Planning Commission's recommendation is attached for consideration at the City Council meeting on 28 April 2003 at 6:30 PM. A. Motion to approve a Comprehensive Plan amendment expanding the East Sanitary Sewer Service District to include the subject site and designate low density residential, medium density residential, and commercial uses generally corresponding to the submitted Concept Plan, subject to the following conditions: 1. Inclusion of the subject site shall not guarantee access to sanitary sewer capacity. The City shall only allocate sanitary sewer capacity to approved final plats with signed development contracts to assure the City of timely development. 2. Development of the property is subject to City approval of (but not limited to) applications for Zoning Map amendment, preliminary plat and PUD - CUP and final plat. 3. A limited exemption from the current moratorium for residential subdivision within the. East Sanitary Sewer Service District shall be subject to City Council approval of a transfer of 44 development rights from the Riverpointe preliminary plat. 4. The preliminary plat is to provide a minimum of 500 feet of space between street intersections to the north -south collector street. 5. Private drives serving four or more units shall be 28 feet wide and those serving three or less units shall be 24 feet wide. A 25 foot setback from the back -of -curb to the townhouse dwellings adjacent to private drives shall be provided. 6. Park dedication requirements will be satisfied as a cash fee in lieu of land at the time of final plat approval. 7. All street, grading, drainage, and utility issues are subject to review and approval of the City Engineer. 8. Comments of other City Staff. B. Motion to deny the application based on a finding that the request is inconsistent with the policies of the Comprehensive Plan for expansion of the sanitary sewer service district. C. Motion to table. PC. Mike Robertson Judy Hudson Andy MacArthur Ron Wagner Ray Baird 2 RESOLUTION NO.: 03 - CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA A RESOLUTION AMENDING THE COMPREHENSIVE PLAN FOR PROPERTY OWNED BY ORRIN THOMPSON HOMES, INC. TO BE INCLUDED WITHIN THE EAST SANITARY SEWER SERVICE DISTRICT AND GUIDED FOR A MIX OF LOW DENSITY RESIDENTIAL, MEDIUM TO HIGH DENSITY RESIDENTIAL, AND COMMERCIAL LAND USES. WHEREAS, the City has received a request from Orrin Thompson Homes, Inc. for approval of an amendment to the Comprehensive Plan to include approximately 37 acres within the east sanitary sewer service district and guide such lands for low density residential, medium and high density residential and commercial land uses; and, WHEREAS, the requested Comprehensive Plan amendment is based on the land uses identified on the development concept dated 17 March 2003 submitted with the application; and, WHEREAS, the map changes necessary to accomplish the request are illustrated by Exhibit A; and, WHEREAS, expansion of the sanitary sewer service district is to be based upon a finding that each of the following criteria outlined by the Comprehensive Plan are satisfied: a. Land to be included in the sanitary sewer service district is not "green acred" or enrolled in an agricultural preservation program. Finding: No information has been provided that the site is in an agriculture preservation program. b. The land lies within one-quarter mile of the sanitary sewer service district boundary or presents environmental problems that can be alleviated by delivery of City water and sewer service. Finding. The subject site is directly adjacent to the boundary of the east sanitary sewer service district. C. The land is located within the designated urban service area reserve. 1 Finding: The subject site is within the Urban Service Area Reserve. d. The potential sewer discharge of the land area to be included is within available capacity limits. Finding: Short term capacity may be limited. However, the City has applied for a permit to expand capacity in the east sanitary sewer service district to 1.0 million gallons per day with planned expansion to 1.5 million gallons per day of capacity. Although the City does not guarantee access to sanitary sewer capacity, service of the subject site is within planned capacity limits. e. The developer shall hold the City harmless should limitations on sewer hook ups be imposed. Finding. Approval of the preliminary plat will be contingent upon a development agreement specifying that sanitary sewer capacity is allocated only for approved final plats that have paid for such service. The developer and/or benefiting property owners assume the significant majority of improvement/service costs. Finding: The City has implemented a number of impact fees and charges to ensure that developers assume the majority of costs benefiting new development within the community. g. The land does not qualify as a premature development or subdivision as regulated by the City's Subdivision Ordinance. Finding: Although there may be short term limits on available sanitary sewer capacity to serve the subject site, the City's plans are that necessary capacity would be available within two years for full -buildout. As such, the proposed expansion would not be considered ,premature under Section 4 of the Subdivision Ordinance. h. Inclusion of the land in the sanitary sewer service district is necessary to achieve a five year supply and respond to a shortage of land to which service is available. Finding. Based upon an estimated flow of 250 gpd. per household, the City would need to add 118 acres to the existing east sanitary sewer service district for utilization of 1.0 million gpd. of capacity, and 554 acres for full use of 1.5 million gpd. If actual flows are closer to the 200 gpd. per ,household estimated by the City Engineer, the City needs an additional 318 acres to 886 acres of land for residential uses within the east sanitary sewer service district to utilize available capacity. These projections assume that 30 percent of the total capacity would be reserved for commercial and industrial uses. 2 WHEREAS, the planning report dated 16 April 2003 prepared by the City Planner, Northwest Associated Consultants, Inc., is incorporated herein; and, WHEREAS, the memorandum dated 15 April 2003 prepared by the City Engineer, Hakanson Anderson Associates, Inc. is incorporated herein; and, WHEREAS, the Otsego Planning Commission conducted a public hearing at their regular meeting on 21 April 2003 to consider the request, preceded by published and mailed notice, and upon review of the application and evidence received voted 4-1 to recommend that the City Council approve the request based upon a finding that the amendment is consistent the policies of the Comprehensive Plan. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEOO THAT; the request to amend the 2001 Comprehensive Plan Update, as illustrated on Exhibit A, is hereby APPROVED, subject to the following conditions: 1. Inclusion of the subject site shall not guarantee access to sanitary sewer capacity. The City shall only allocate sanitary sewer capacity to approved final plats with signed development contracts to assure the City of timely development. 2. Development of the property is subject to City approval of (but not limited to) applications for Zoning Map amendment, preliminary plat and PUD -CUP and final plat. 3. A limited exemption from the current moratorium for residential subdivision within the East Sanitary Sewer Service District shall be subject to City Council approval of a transfer of 44 development rights from the Riverpoine preliminary plat. 4. The preliminary plat is to provide a minimum of 500 feet of space between street intersections to the north -south collector street. 5. Private drives serving four or more units shall be 28 feet wide and those serving three or less units shall be 24 feet wide. A 25 foot setback from the back -of -curb to the townhouse dwellings adjacent to private drives shall be provided. 6. Park dedication requirements will be satisfied as a cash fee in lieu of land at the time of final plat approval. 7. All street, grading, drainage, and utility issues are subject to review and approval of the City Engineer. ADOPTED by the City Council of the City of Otsego this 28th day of April, 2003. CITY OF OTSEGO BY. Larry Fournier, Mayor ATTEST: Judy Hudson, Zoning Administrator/City Clerk 4 00 NOTE: EAST AND WEST SANITARY SEWER SERVICE DISTRICTS CONSIST OF AN IMMEDIATE URBAN SERVICE AREA AND AN INTERMEDIATEURBAN SERVICE AREA CONCEPT PLAN LONG RANGE URBAN SERVICE AREA BASE MAP DAI A PROVED BY In 7 Anderson Assoc., Inc. PREPARED OCTOBER 2001 NOTE: THIS MAP IS FOR PLANNING PURPOSES ONLY AND SHOULD NOT BE USED FOR EXACT MEASUREMENT. OTSEGO COMPREHENSIVE PLAN UPDATE DEVELOPMENT FRAMEWORK LAND USE PLAN EAST SANITARY SEWER SERVICE DISTRICT BASE MAP DATAPRCNIDED BY MHakanson Anderson Assoc.,InC, PREPARED OCTOBER 2001 OTS EGO ❑ Low Density Residential ® Medium/High Density Residential 0 Commercial 0 Industrial Public & Semi - Public NORTH NOTE: THIS MAP IS FOR PLANNING PURPOSES ONLY AND SHOULD NOT BE USED FOR EXACT MEASUREMENT. 75D 0 lam 3000 opm SCAU N FER COMPREHENSIVE PLAN UPDATE DEVELOPMENT FRAMEWORK 105 EXHIBIT A-2 ITEM 6.2 NORTHWEST ASSOCIATED CONSULTANTS, INC. 5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Daniel Licht DATE: 22 April 2003 RE: Otsego — Arbor Creek EAW NAC FILE: 176.02 — 03.06 Please be advised that the Planning Commission held a public hearing on 7 April 2003 to consider the environmental assessment worksheet (EAW) for the Arbor Creek Preliminary Plat. Mr. John Jackels was present to represent the developer Emmerich Development Corporation. There were no comments from the public. The Planning Commission closed the public hearing and without further discussion voted to recommend that preparation of an EIS is not necessary. The only comments received to date on the EAW were from the DNR in a letter dated 7 April 2003. The comment letter did not identify any specific environmental concern with the project, but raised the issue with the potential cumulative environmental effects of this project and others within the west sanitary sewer service district. Our response to this comment is the extent and type of growth was anticipated and planned for as part of the Comprehensive Plan. Furthermore, the all development proposals are subject review for Comprehensive Plan consistency and conformance with applicable performance standards outlined in the City's Zoning Ordinance, Subdivision Ordinance and Engineering Manual as well as the other agency applications outlined in Paragraph 8 of the EAW. Compliance with these policies and performance standards will mitigate any potential significant environmental effects, which are not anticipated. This issue will be before the City Council at their meeting on 28 April 2003 after the close of the 30 day comment period. Findings consistent with the Planning Commission's recommendation are attached. A. Motion to adopt findings that the proposed Arbor Creek does not have potential for significant environmental effects and that preparation of an EIS is not to be required based on a review of the submitted EAW and evidence received, subject to the following condition: The project shall proceed in conformance with the preliminary plat and applicable stipulations approved 10 March 2003 by the City Council. B. Motion to adopt findings that the proposed Arbor Creek does have potential for significant environmental effects and that preparation of an EIS is to be required based on a review of the submitted EAW and evidence received. PC. Mike Robertson Judy Hudson Andy MacArthur Ron Wagner John Jackels Dave Nash 11 CITN' OF 0 T S E G 0 WRIGH'I' COUNTY, INJINNESUFA APPLICANT: Emmerich Development Corporation. 04-22-03 FINDINGS & DECISION Negative Declaration for EIS APPLICATION: Consideration of an Environmental Assessment Worksheet related to the Arbor Creek preliminary plat. CITY COUNCIL MEETING: 28 April 2003 FINDINGS: Based upon review of the application, the recommendation of the Planning Commission, and evidence received, the City Council of the City of Otsego now makes the following findings of fact: A. The legal description of the subject site is attached as Exhibit A. B. The project lies within the west sanitary sewer service district and is guided for low density residential land uses by the Otsego Comprehensive Plan, as amended. C. The project is zoned between the R-4, Residential Urban Single Family District and R-6, Residential Townhouse, Quadraminium and Low Density Multiple Family District to allow for development of 496 single family lots on approximately 208 acres. D. The project requires preparation of a mandatory EAW pursuant to Minnesota Rules 4410.4300 Subp. 19 and Subp. 36.A. E. The EAW was approved by the Otsego Zoning Administrator for distribution was published in the Environmental Quality Board Monitor on 17 March 2003. The 30 day comment period ends 16 April 2003. F. Section 20-38-3.D.4 of the Zoning Ordinance required the City Council to base its decision on the need for an Environmental Impact Statement (EIS) and the proposed scope of an EIS on the information gathered during the EAW process and on the comments received on the EAW. Pursuant to Minnesota Rules 4410.1700, in deciding whether a project has the potential for significant environmental effects, the following factors shall be considered: a. Type, extent and reversibility of environmental effects. b. Cumulative potential effects of related or anticipated future projects. C. The extent to which the environmental effects are subject to mitigation by ongoing public regulatory authority. d. The extent to which environmental effects can be anticipated and controlled as a result of other environmental studies undertaken by public agencies or the project proposer, or of EISs previously prepared on similar projects. G. The EAW dated 26 February 2003 prepared by MFRA Inc. is incorporated herein. H. The planning reports dated 27 February 2003, 1 April 2003 and 22 April 2003 prepared by the City Planner, Northwest Associated Consultants, Inc., are incorporated herein. The engineering review dated 3 March 2003 prepared by the City Engineer, Hakanson Anderson Associates, Inc., is incorporated herein. The Otsego Planning Commission conducted a public hearing at their regular meeting on 7 April 2003 to consider the application, preceded by published and mailed notice. Upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 4-0 vote that the City Council make a finding that the request does not have the potential for significant environmental effects and preparation of an EIS is not necessary based on the aforementioned findings. K. The letter from the Department of Natural Resources dated 7 April 2003 is incorporated herein. No other comments regarding the EAW were received during the 30 -day comment period. DECISION: Based on the foregoing information and applicable ordinances, the proposed Arbor Creek does not have potential for significant environmental effects and that preparation of an EIS is not to be required based on a review of the submitted EAW and evidence received, subject to the following condition: The project shall proceed in conformance with the preliminary plat and applicable stipulations approved 10 March 2003 by the City Council. PASSED by the Otsego City Council this 28th day of April, 2003. Attest: CITY OF OTSEGO Larry Fournier, Mayor Judy Hudson, Zoning Administrator/City Clerk F.7b,*cjte and :,- sz.?:: o:-, e l-eit sq. 7.-.5e cab :onlet, ed C'3b:.r; QrS, rd ca 5:0:7; de ri-'e PlAE 1:430P FLE 14-11 L LOC-4*i t Or. &;0 1111 ;C-tf: 14 = I RMA 2 BHS OTSEGO'S WATERFRONT MONUMENT 2/CIO SSCA _ _ _ _ I-,->- - - - 0,020 SR / SSCA II 15 / � 1 111 /5 IRSJws / 1 i 1 PA SSCA 30 I � DF RIVERVIEW BAK II \ \ MONUMEN�� II \ I /5 BANK GBC i \ I SSCA II 30 2' BERM 1 / CPB P BERM / SSCA j ., ✓ I 11 KEY QUANTITY COMMON/BOTANICAL SUGGESTED LAND SCA LEGEND SIZE ROOT KEY QUANTITY COMMON/BOTANICAL SIZE R0OT PA 2 PATMORE ASH/ rRAIGNUS PENNSYLVANICA LANCEOLATA PA C JWS 15 JAPANESE WHITE SPIREA/ SPIRACA JAPONICA ]GAL 1 � SUGGESTED LAND SCA LEGEND SIZE ROOT KEY QUANTITY COMMON/BOTANICAL SIZE R0OT PA 2 PATMORE ASH/ rRAIGNUS PENNSYLVANICA LANCEOLATA 2 I/2' CAL B&B JWS 15 JAPANESE WHITE SPIREA/ SPIRACA JAPONICA ]GAL CONT PATMORL 'JAPANESE WHITE' SSCA 9 SPRING SNOW CRABAPPLE/ I—I/2' CAL B&B OF 30 DWARF FORSYTHIA/ I CAL CONT MALLS SPRING SNOW FORSYTHIA VIRIDSSIMA BROTENSIS BHS 2 BLACKHILLS SPRUCE/ 6' HT BAe CPB 30 CRIMSON PYGMY BARBERRY/ I GAL CONT PICEA GLAUCA DENSATA BERBERIS THUNBERG 'CRIMSON PYGMY' IRS 15 JAPANESE RED SPIREA/ SPIRACA JAPONICA IGAL CONT GBC 15 GLOSSY BLACK CHOKEBERRY/ 3 GAL POT 'JAPANESE RED' ARONIA MELANOCARPA SR 30 SHUB ROSE/ 3 GAL CONT ROSA RL IGOSA CUTHBERT GRANT Planning Civil Engineering Land Surveying • SIGN EXHIBIT Landscape Architecture Environmental Archaeology 1200 Hemlock Lae, Sui te 300 RIVERVIEW BANK ^ e2w^e,°UF5569-559AssociATEs Teleph763(41-5505 x: (7,63424-58-12OTSEGO, MINNESOTA teb Pete: 1—kzmclarm.c°m 0 za°° Hakanson 1 Anderson Assoc., Inc. 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 Phone: 763/427-5860 Fax:763/427-0520 CITY OF OTSEGO CITY COUNCIL CITY ENGINEER'S AGENDA APRIL 28, 2003 Item 7.1: Lance Hovland, W -H Electric Co-op — Discussions of charges for 8511 Street Improvements Item 7.2: Consider Awarding 85" Street and Page Avenue Project Item 7.3: Consider Approving Plans and Specs and Advertisement for Bid for 2003 Road Maintenance Project Item 7.4: Consider City Trunk Sewer and Water Project to Supply Utilities to Kittredge Crossing as petitioned by Darrel A. Farr Development Corp. Item 7.5: Any other Engineering Business Civil -Municipal �� Engineering G:\Municipal\AOTSEGO\Agendas\2003\councila E�H&e'ing for Hakanson 1 Anderson Assoc., Inc. April 25, 2003 Honorable Mayor and City Council City of Otsego 8899 Nashua Avenue NE Otsego, MN 55330 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 Phone: 763/427-5860 Fax: 763/427-0520 Re: Construction Bids, 85`' Street NE and Page Avenue NE Dear Mayor and City Council: Bids were received and opened on April 24, 2003, for the construction of 85th Street NE and Page Avenue NE. A total of 5 bids were received as shown on the attached Bid Tabulation. Dresel Contracting, Inc. is the low bidder at $1,772,947.80 and their bid is below our opinion of probable construction cost of $1,936,000. There was a minor defect in the bid regarding mobilization. We specified the price for mobilization shall not exceed 3.0% of the total bid price. The purpose for this specification is to reduce the potential for an unbalanced bid. Mobilization is one of the first pay items and we want to pay for items as they are completed, and not before. The mobilization bid price from Dresel Contracting, Inc. was 3.95% of their total bid price. We have corresponded with the City Attorney regarding this matter. Since the defect does not provide the low bidder a substantial advantage, we recommend the City of Otsego waive the minor defect. Dresel Contracting, Inc. is local, has previously worked on other projects with Hakanson Anderson Associates, Inc. and has successfully completed numerous projects in the Twin Cities area. Based on the above, we recommend award of the contract to the low bidder, Dresel Contracting, Inc., 24044 July Avenue, Chisago City, Minnesota 55013. Sincerely, Hakanson Anderson Associates, Inc. RJW:dlc Enclosure cc: Mike Robertson, Administrator Judy Hudson, City Clerk Civil &Municipal G:\MunicipaRAOTSEG0345\ot345award.doc Engineering Land Surveying for �C Bid Schedule "A" - Streets - No. 02-10 85th Street NE 217-102-04 Item Description BID TABULATION CITY OF OTSEGO CITY OF OTSEGO STREET IMPROVEMENTS 85TH STREET NE, MSAP 217-102-04 AND MSAP 217-102-05 AND PAGE AVENUE NE MSAP Dresel Contracting Estimated Quantity Unit Price FYtPncinn Buffalo Bituminous I Init Pri- F Midwest Asphalt 1 Mobilization 1 LS $25,000.00 LS $25,000.00 $5,400.00 LS $5,400.00 $14,000.00 LS $14,000.00 2 Clearing and Grubbing 1 LS $4,500.00 LS $4,500.00 $2,500.00 LS $2,500.00 $1,100.00 LS $1,100.00 3 Remove Metal Culvert 230 LF $6.00 LF $1,380.00 $4.50 LF $1,035.00 $8.75 LF_ $2,012.50 4 Remove Concrete Curb & Gutter 20 LF $2.00 LF $40.00 $5.00 LF $100.00 $3.60 LF $72.00 5 Remove Wood Post Fence 150 1 LF $1.00 LF $150.00 $3.00 LF $450.00 $1.65 LF $247.50 6 Remove Railroad Ties 48 LF $2.00 LF $96.00 $3.00 LF $144.00 $10.35 LF $496.80 7 Remove Retaining Wall 150 SF $2.00 SF $300.00 $3.00 SF $450.00 $1.65 SF $247.50 8 Remove Bituminous Pavement 9500 Sy $0.65 Sy $6,175.00 $2.15 Sy $20,425.00 $0.75 SY $7,125.00 9 Remove Wood Post 3 EACH $25.00 EACH $75.00 $25.00 EACH $75.00 $33.35 EACH $100.05 10 Remove Metal Post 1 EACH $25.00 EACH $25.00 $25.00 EACH $25.00 $33.35 EACH $33.35 11 Remove Sin 10 EACH $30.00 EACH $300.00 $15.00 EACH $150.00 $33.35 EACH $333.50 12 Sawing Bit Pavement Full Depth) 370 LF $3.00 LF $1,110.00 $3.00 LF $1,110.00 $2.00 LF $740.00 13 Salvage & Reinstall Chain Link Fence 200 LF $4.00 LF $800.00 $7.00 LF $1,400.00 $14.20 LF $2,840.00 14 Salvage & Reinstall Wood Post/Woven Wire Fence 320 LF $3.00 LF $960.00 $10.00 LF $3,200.00 $12.00 LF $3,840.00 15 Salvage & Reinstall Wood Fence Posts 4 EACH $25.00 EACH $100.00 $50.00 EACH $200.00 $81.80 EACH $327.20 16 Salvage & Reinstall Sin 2 EACH $45.00 EACH $90.00 $55.00 EACH $110.00 $55.55 EACH $111.10 17 Common Excavation P 20000 Cy $4.25 Cy $85,000.00 $4.50 Cy $90,000.00 $4.98 Cy $99,600.00 18 Aggregate Base Class 5 7500 TON $7.25 TON $54,375.00 $13.00 TON $97,500.00 $8.80 TON $66,000.00 19 Mill Bituminous Surface 2.0" 75 Sy $4.00 Sy $300.00 $5.50 Sy $412.50 $5.55 Sy $416.25 20 Type LV 4 Wearing Course Mixture C 2555 TON $34.40 TON $87,892.00 $39.00 TON $99,645.00 $33.30 TON $85,081.50 21 Type LV 3 Non -Wearing Course Mixture B 2280 TON $27.20 TON $62,016.00 $30.50 TON $69,540.00F-$27.65 TON $63,042.00 22 Bituminous Material For Tack Coat 900 GAL $1.25 GAL $1,125.00 $1.00 GAL $900.00 GAL $1,485.00 23 Adjust Gate Valve 2 EACH $150.00 EACH $300.00 $250.00 EACH $500.00 EACH $260.00 24 Ad'ust Frame & Rin Castin 2 EACH $300.00 EACH $600.00 $350.00 EACH $700.00 EACH $350.00 25 Concrete Curb & Gutter Design B618 26 6" Concrete Driveway Pavement 6500 62 LF Sy $7.00 $26.50 LF Sy $45,500.00 $1,643.00 $7.00 $34.50 LF Sy $45,500.00 $2,139.00 $8.45 $32.00 LF Sy $54,925.00 $1,984.00 FILE: ShareWunicipal/aramsey/o1345 Bid Proposal.zls SHEET: BID TABULATION BP -1 00300 Item Descrintion Dresel L untracting I Buffalo Bituminous Estimated Midwest Asphalt 27 6" Concrete Valley Gutter 270 SY 28 Traffic Control 1 LS 29 Sign Panels, Type C 108 SF 30 4" Double Solid Line Yellow - Paint 2800 LF -- $26.50 SY $3,000.00 LS $20.00 SF $0.16 LF - •-••�• •• $7,155.00 $3,000.00 $2,160.00 $448.00 �• �� $37.50 SY $2,000.00 LS $26.75 SF $0.15 LF CALtl1151U11 $10,125.00 $2,000.00 $2,889.00 $420.00 unit race $32.00 $4,500.00 $21.30 $0.16 SY LS SF LF Lxtension $8,640.00 $4,500.00 $2,300.40 $448.00 31 4" Double Solid Line Yellow - Epoxy 2800 LF $0.16 LF $448.00 $0.35 LF $980.00 $0.35 LF $980.00 32 4" Solid Line White - Epoxy 5730 LF 33 12" Solid Line White - Epoxy 270 IF $0.17 LF $3.00 LF $974.10 $810.00 $0.20 LF $3.00 LF $1,146.00 $810.00 $0.17 $3.27 LF LF $974.10 $882.90 34 Bale Check 25 EACH $7.00 EACH $175.00 $10.00 EACH $250.00 $10.90 EACH $272.50 35 Silt Fence, Type Machine Sliced 500 LF 36 Seeding - Type Lawn Restoration 2 ACRE 37 Sodding - Type Lawn Restoration 1000 SY 38 Seeding Mixture - 60B 300 LBS $1.25 LF $1,280.00 ACRE $2.00 SY $3.10 LBS $625.00 $2,560.00 $2,000.00 $930.00 $2.00 LF $1,250.00 ACRE $2.10 SY $2.40 LBS $1,000.00 $2,500.00 $2,100.00 $720.00 $2.20 $2,500.00 $2.60 $2.60 LF ACRE SY LBS $1,100.00 $5,000.00 $2,600.00 $780.00 39 Erosion Control Blanket, Category 1 700 SY 40 Commercial Fertilizer, 20-10-10 1000 LBS $1.35 SY $0.34 LBS $945.00 $340.00 $2.00 SY $0.30 LBS $1,400.00 $300.00 $2.20 $0.33 SY LBS $1,540.00 $330.00 41 Hydraulic Soil Stabilizer, Type 6 2.5 TON $430.00 TON $1,075.00 $790.00 1 TON $1,975.00 $860.00 TON $2,150.00 Total Bid Schedule "A" - Streets - No. 02-10 85th Street NE MSAP 217-102-04 $403,497.10 $472,225.50 $439,268.15 Bid Schedule "B" - Storm Sewer - No. 02-10 85th Street NE MSAP 217-102- 04 Estimated Item Description Quantity Unit Price Extension Unit Price Extension Unit Price Extension 42 18" RC Pipe Apron 1 EACH $650.00 EACH $650.00 $410.00 EACH $410.00 $447.00 EACH $447.00 43 24" RC Pipe Apron 1 EACH $1,050.00 EACH $1,050.00 $465.00 EACH $465.00 $503.50 EACH $503.50 44 15" HDPE Pipe Drain 310 LF $13.80 LF $4,278.00 $21.00 LF $6,510.00 $22.00 LF $6,820.00 45 15" RC Pie Sewer Design 3006 CL V (all depths) 525 LF $21.30 LF $11,182.50 $23.00 LF $12,075.00 $25.10 LF $13,177.50 46 18" RC Pipe Sewer Design 3006 CL III (all depths) 690 LF $23.00 LF $15,870.00 $25.50 LF $17,595.00 $27.35 LF $18,871.50 47 21" RC Pipe Sewer Design 3006 CL III all depths) 315 LF $26.50 LF $8,347.50 $27.50 LF$8,662.50 $29.90 LF $9,418.50 48 24" RC Pipe Sewer Design 3006 CL III all de the 49 Connect to Existing Storm Sewer 50 Construct Drainage Structure 2'x 3' 51 Construct Drain a e Structure Design 48" 4020 52 Construct Drain a e Structure 27" 53 Random Ri Ra Class III 460 1 6 9 1 15 LF EACH EACH EACH EACH CY $28.00 $350.00 $1,400.004EACH $1,850.0016,650-00 $1,600.001,60000 $75.001,125.00 LF EACH $12,880.00 $350.00 $8,400.00 $29.50 $370.00 $1,100.00 $1,500.00 $875.00 $70.00 LF EACH EACH EACH EACH CY $13,570.00 $370.00 $6,600.00 $13,500.00 $875.00 $1,050.00 $32.20 $400.00 $1,255.00 $1,730.00 LF EACH EACH EACH $14,812.00 $400.00 $7,530.00 $15,570.00 $1,020.00 EACH $1,020.00 $76.00 CY $1,140.00 Total - Bid Schedule "B" - Storm Sewer - No. 02-10 85th Street NE MSAP 217-102-04 FILE: Share Wlunicipal/aramsey/o1345 Bid Proposal As SHEETBID TABULATION BP -2 $82,383.00 $81,682.50 $89,710.00 00300 Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102-05 Dresel Contracting Buffalo Bituminous Midwest Asphalt Estimated Item Description Quantity Unit Price Extension Unit Price Extension Unit Price Extension 54 Mobilization 1 LS $25,000.00 LS $25,000.00 $5,400.00 LS $5,400.00 $14,000.00 LS $14,000.00 55 Field Office Type D 1 EACH $4,500.00 EACH $4,500.00 $3,500.00 EACH $3,500.00 $4,000.00 EACH $4,000.00 56 Clearing and Grubbing 1 LS $4,000.00 LS $4,000.00 $4,500.00 LS $4,500.00 $1,100.00 LS $1,100.00 57 Remove Sewer Pipe (Storm) 497 LF $8.00 LF $3,976.00 $8.00 LF $3,976.00 $8.75 LF $4,348.75 58 Remove Concrete Culvert 335 LF $8.00 LF $2,680.00 $7.00 LF $2,345.00 $7.40 LF $2,479.00 59 Remove Metal Culvert 303 LF $6.00 LF $1,818.00 $4.50 LF $1,363.50 $7.40 LF $2,242.20 60 Remove Pipe Culvert 40 LF $6.00 LF $240.00 $6.00 LF $240.00 $8.75 LF $350.00 61 Remove Bituminous Curb 430 LF $1.00 LF $430.00 $1.00 LF $430.00 $2.35 LF $1,010.50 62 Remove Concrete Curb & Gutter 50 LF $2.00 LF $100.00 1 $4.00 LF $200.00 $3.60 LF $180.00 63 Remove Concrete DrivewayPavement 642 SF $1.25 SF $802.50 $1.00 SF $642.0 $$0.32 SF $205.44 64 Remove RetainingWall 100 SF $2.00 SF $200.00 $3.00 SF $300.00 $1.65 SF $165.00 65 Remove Bituminous Pavement 12000 SY $0.65 SY $7,800.00 $2.15 SY $25,800.00 $0.75 SY $9,000.00 66 Remove Bituminous Flume 4 EACH $3.00 EACH $12.00 $100.00 EACH $400.00 $110.00 EACH $440.00 67 Sawing Concrete Pavement Full Depth) 40 LF $4.00 LF $160.00 $5.00 LF $200.00 $3.00 LF $120.00 68 Sawing Bit Pavement Full Depth) 285 LF $3.00 LF $855.00 $3.50 LF $997.50 $2.00 LF $570.00 69 Salvage & Reinstall Woven Wire Fence 250 LF $3.00 LF $750.00 $10.00 LF $2,500.00 $12.00 LF $3,000.00 70 Salvage & Reinstall Chain Link Fence 520 LF $4.00 LF $2,080.00 $8.50 LF $4,420.00 $14.20 LF $7,384.00 71 Salvage & Reinstall Fence Plastic Rail 1080 LF $4.00 LF $4,320.00 $9.50 LF $10,260.00 $16.35 LF $17,658.00 72 Salvage & Reinstall Fence (Split Rail 300 LF $4.00 LF $1,200.00 $10.25 LF $3,075.00 $10.90 LF $3,270.00 73 Salvage & Reinstall Wood Post 25 EACH $25.00 EACH $625.00 $45.00 EACH $1,125.00 $81.80 EACH $2,045.00 74 Salvage & Reinstall Sin 4 EACH $25.00 EACH $100.00 $55.00 EACH $220.00 $49.00 EACH $196.00 75 Abandon Culvert 1 EACH $500.00 EACH $500.00 $200.00 EACH $200.00 $1,332.00 EACH $1,332.00 76 Common Excavation (P) 35000 CY $4.25 CY $148,750.00 $4.25 CY $148,750.00 $4.98 CY $174,300.00 77 Muck Excavation 2000 CY $5.00 CY $10,000.00 $4.25 CY $8,500.00 $6.00 CY $12,000.00 78 Class 5 Aggregate Base 10790 TON $7.25 TON $78,227.50 $13.00 TON $140,270.00 $8.80 TON $94,952.00 79 Class 7 Aggregate Base (8") 11310 TON $8.00 TON $90,480.00 $3.70 TON $41,847.00 $9.35 TON $105,748.50 80 Mill Bituminous Surface 2" 50 SY $4.00 SY $200.00 $5.50 SY $275.00 $5.55 SY $277.50 81 Type LV 4 Wearing Course Mixture (C) 3325 TON $34.40 TON $114,380.00 $39.00 TON $129,675.00 $33.30 TON $110,722.50 82 Type LV 3 Non -Wearing Course Mixture B 3040 TON $27.20 TON $82,688.00 $30.50 TON $92,720.00 $27.10 TON $82,384.00 83 Bituminous Material For Tack Coat 1000 GAL $1.25 GAL $1,250.00 $1.00 GAL $1,000.00 $1.65 GAL $1,650.00 84 JAdjust Frame & Ring Casting 1 EACH $300.00 EACH $300.00 $350.00 EACH $350.00 $175.00 EACH $175.00 FILE' ShareWunicipal/aramsey/o1345 Bid Proposal As SHEET: BID TABULATION BP -3 00300 Total - Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102 05 $730,718.50 FILE: Share Wlunicipal/aramsey/W345 Bid Proposal.xls SHEET: BID TABULATION BPA $783,669.00 $835,834.29 00300 Dresel Contracting Buffalo Bituminous Midwest Asphalt Estimated Item Description Quantity Unit Price Extension Unit Price Extension Unit Price Extension 85 Concrete Curb & Gutter Design B618 8700 LF $7.00 LF $60,900.00 $7.00 LF $60,900.00 $8.45 LF $73,515.00 86 6" Concrete Driveway Pavement 150 SY $26.50 SY $3,975.00 $34.50 SY $5,175.00 $32.00 SY $4,800.00 87 6" Concrete Valley Gutter 390 SY $26.50 SY $10,335.00 $37.50 SY $14,625.00 $32.00 SY $12,480.00 88 Block Retaining Wall 700 SF $19.00 SF $13,300.00 $17.00 SF $11,900.00 $20.75 SF $14,525.00 89 Traffic Control 1 LS $3,000.00 LS $3,000.00 $2,000.00 LS $2,000.00 $4,500.00 LS $4,500.00 90 Sign Panels, Type C 130.5 SF $20.00 SF $2,610.00 $24.00 SF $3,132.00 $21.30 SF $2,779.65 91 4" Double Solid Line Yellow - Paint 3750 LF $0.16 LF $600.00 $0.15 LF $562.50 $0.16 LF $600.00 92 4" Double Solid Line Yellow - Epoxy 3750 LF $0.34 LF $1,275.00 $0.35 LF $1,312.50 $0.35 LF $1,312.50 93 4" Solid Line White -..Epoxy 8500 LF $0.17 LF $1,445.00 $0.20 LF $1,700.00 $0.17 LF $1,445.00 94 12" Solid Line White - Epoxy 135 LF $3.00 LF $405.00 $3.00 LF $405.00 $3.27 LF $441.45 95 Coniferous Tree 8' Ht. B & B 10 TREE $350.00 TREE $3,500.00 $300.00 TREE $3,000.00 $330.00 TREE $3,300.00 96 Deciduous Tree 8' Ht. BR 10 TREE $350.00 TREE $3,500.00 $300.00 TREE $3,000.00 $330.00 TREE $3,300.00 97 Transplant Tree Sade Size 42" 11 TREE $200.00 TREE $2,200.00 $50.00 TREE $550.00 $165.00 TREE $1,815.00 98 Transplant Tree Sade Size 60" 11 TREE $300.00 TREE $3,300.00 $100.00 TREE $1,100.00 $165.00 TREE $1,815.00 99 Bale Check 50 EACH $7.00 EACH $350.00 $10.00 EACH $500.00 $10.90 EACH $545.00 100 Silt Fence, Type Machine Sliced 5000 LF $1.25 LF $6,250.00 $2.00 LF $10,000.00 $2.20 LF $11,000.00 101 Seeding - Type Lawn Restoration 7.5 ACRE $1,280.00 ACRE $9,600.00 $1,250.00 ACRE $9,375.00 $2,500.00 ACRE $18,750.00 102 SeedingMixture - 60B 1125 LBS $3.10 LBS $3,487.50 $2.40 LBS $2,700.00 $2.60 LBS $2,925.00 103 Sodding- Type Lawn Restoration 3000 SY $2.00 SY $6,000.00 $2.10 SY $6,300.00 $2.60 SY $7,800.00 104 Erosion Control Blanket, Category 1 700 SY $1.35 SY $945.00 $2.00 SY $1,400.00 $2.20 SY $1,540.00 105 Commercial Fertilizer, 10-10-10 3750 1 LBS 1 $0.34 LBS $1,275.00 $0.30 LBS $1,125.00 $0.33 LBS $1,237.50 106 Hydraulic Soil Stabilizer Type 6 9.4 TON $430.00 TON $4,042.00 $790.00 TON $7,426.00 $862.00 TON $8,102.80 Total - Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102 05 $730,718.50 FILE: Share Wlunicipal/aramsey/W345 Bid Proposal.xls SHEET: BID TABULATION BPA $783,669.00 $835,834.29 00300 Bid Sched Storm Sewer - No. 02-06 85th Street NE MSAP 217-102- 05 Estimated Item Description Quantity Dreser _-ntracting Unit Price Extension Buffalo Bituminous Midwest Asphalt Total - Bid Schedule "D" - Storm Sewer - No. 02-06 85th Street NE MSAP I 217-102-05 $133,768.90 $120,947.50 $132,625.60 Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE Estimated nI rl�u Cxtenslon unit Price Extension 107 108 109 110 111 12" RC Pipe Apron 15" RC Pipe Apron 18" RC Pipe Apron 24" RC Pipe Apron 12" RC Pipe Sewer Design 3006 CL V (all depths) 1 4 6 2 30 EACH EACH EACH EACH LF $375.00 EACH $400.00 EACH $450.00 EACH $1,050.00 EACH $21.00 LF $375.00 $375.00 EACH $1,600.00 $385.00 EACH $2,700.00 $410.00 EACH $2,100.00 $475.00 EACH $630.00 $22.00 LFE$28,875.00 $375.00 $1,540.00 $2,460.00 $950.00 $400.00 EACH $420.00 EACH $447.00 EACH $503.50 EACH $23.60 LF $400.00 $1,680.00 $2,682.00 $1,007.00 $708.00 112 113 114 115 116 117 118 119 120 121 122 15" RC Pipe Sewer Design 3006 CL V all depths) 18" RC Pipe Sewer Design 3006 CL III (all depths) 21" RC Pipe Sewer Design 3006 CL III all depths) 24" RC Pipe Sewer Design 3006 CL III all depths) Connect to Existing Storm Sewer Construct Drainage Structure 27" Construct Drainage Structure 2' x 3' Construct Drain a e Structure Design 48" 4020 Construct Drain a e Structure Design 54" 4020 Construct Skimmer Structure Random RipRap Class III 923 1070 1050 223 3 2 5 12 2 2 75 LF LF LF LF EACH EACH EACH EACH EACH EACH CY $21.30 LF $23.00 LF $26.50 LF $28.00 LF $400.00 EACH $1,600.00 EACH $1,400.00 EACH $1,800.00 EACH $2,200.00 EACH $2,500.00 EACH $75.00 CY $19,659.90 $23.00 LF $24,610.00 $25.50 LF $27,825.00 $27.50 LF $6,244.00 $29.50 LF $1,200.00 $440.OD EACH $3,200.00 $425.00 EACH $7,000.00 $775.00 EACH $21,600.00 $1,100.00 EACH $4,400.00$1,400.00 EACH $5,000.00$1,850.00 EACH $5,625.00 $70.00 CY $1,320.00 $850.00 $3,875.00 $13,200.00 $2,800.00 $3,700.00 $5,250.00 $25.10 LF $27.40 LF $29.90 LF $32.10 LF $480.00 EACH $540.00 EACH $932.00 EACH $1,250.00 EACH $1,615.00 EACH $2,000.00 EACH $76.00 CY $23,167.30 $29,318.00 $31,395.00 $7,158.30 $1,440.00 $1,080.00 $4,660.00 $15,000.00 $3,230.00 $4,000.00 $5,700.00 Total - Bid Schedule "D" - Storm Sewer - No. 02-06 85th Street NE MSAP I 217-102-05 $133,768.90 $120,947.50 $132,625.60 Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE Estimated Item Description Quantity Unit Price Extension Unit Price Extension Unit Price Extension 123 Mobilization 1 LS $20,000.00 LS $20,000.00 $5,400.00 LS $5,400.00 $10,000.00 LS $10,000.00 124 Clearing and Grubbing 1 LS $300.00 LS $300.00 $500.00 LS $500.00 $3,300.00 LS $3,300.00 125 Remove Concrete Culvert 6 LF $8.00 LF $48.00 $7.00 LF $42.00 $7.40 LF $44.40 126 127 128 129 130 Remove Metal Culvert 400 LF $6.00 LF Remove Concrete Curb & Gutter 150 LF $2.00 LF Remove Concrete DrivewayPavement 712 SF $1.25 SF Remove Bituminous Pavement 11750 SY $0.65 SY SawingConcrete Pavement Full Depth) 20 LF $4.00 LF $2,400.00 $300.00 $890.00 $7,637.50 $80.00 $4.50 $3.50 $1.00 $2.15 $4.00 LF LF SF SY LF $1,800.00 $525.00 $712.00 $25,262.50 $80.00 $7.40 LF $3.60 LF $2.20 SF $0.75 SY $3.00 LF $2,960.00 $540.00 $1,566.40 $8,812.50 $60.00 131 Sawing Bit Pavement (Full Depth) 570 LF $3.00 LF $1,710.00 $2.50 LF $1,425.00 $2.00 LF $1,140.00 132 133 134 Salvage Retaining Wall 73 SF $12.00 SF Salvage & Reinstall Sin 24 1 EACH $50.00 EACH Salvage Casting 1 EACH $300.00 EACH $876.00 $1,200.00 $300.00 $3.00 $85.00 $30.00 SF EACH EACH $219.00 $2,040.00 $30.00 $62,900.00 $1.65 SF $120.45 $49.00 EACH $89.00 EACH $1,176.00 $89.00 135 Common Excavation (P) 14800 1 CY $4.25 CY $62,900.00 $4.25 CY $4.98 CY $73,704.00 FILE: ShareW,nibpal/aramsey/o1345 Bid Proposal As SHEET: BIDTA13ULATION BP -5 00300 Estimated Item Description Quantity 136 Class 5 Aggregate Base 6100 TON 137 Mill Bituminous Surface 2") 75 SY Dresel Contracting Unit Price Extension $7.25 TON $44,225.00 $4.00 SY $300.00 Buffalo Bituminous Unit Price Extension $13.00 TON $79,300.00 $5.00 SY $375.00 Midwest Asphalt Unit Price Extension $8.80 TON $53,680.00 $5.55 SY $416.25 138 139 Type LV 4 Wearing Course Mixture C 2050 TON Type LV 3 Non -Wearing Course Mixture (B) 1920 TON $34.40 TON $27.20 TON $70,520.00 $52,224.00 $39.00 TON $30.50 TON $79,950.00 $58,560.00 $33.30 TON $27.65 TON $68,265.00 $53,088.00 140 141 142 Bituminous Material For Tack Coat 700 GAL Adjust Frame & Ring Casting 1 EACH Concrete Curb & Gutter Design B618 5380 LF $1.25 GAL $300.00 EACH $7.00 LF $875.00 $300.00 $37,660.00 $1.00 GAL $350.00 EACH $7.00 LF $700.00 $350.00 $37,660.00 $1.65 GAL $1,155.00 $175.00 EACH $8.25 LF $175.00 $44,385.00 143 144 6" Concrete Driveway Pavement 100 SY 6" Concrete Valley Gutter 50 SY $26.50 SY $26.50 SY $2,650.00 $1,325.00 $34.50 SY $37.50 SY $3,450.00 $1,875.00 $38.75 SY $42.00 SY $3,875.00 $2,100.00 145 Traffic Control 1 LS $2,500.00 LS $2,500.00 $2,000.00 LS $2,000.00 $4,000.00 LS $4,000.00 146 Sign Panels, Type C 73.5 SF $20.00 SF $1,470.00 $24.50 SF $1,800.75 $21.30 SF $1,565.55 147 148 149 4" Double Solid Line Yellow - Paint 2350 LF 4" Double Solid Line Yellow - E ox 2350 LF 4" Solid Line White - Epoxy 4150 LF $0.16 LF $0.34 LF $0.17 LFE $376.00 $799.00 05.50 $0.15 LF $0.35 LF $0.20 LF $352.50 $822.50 $830.00 $0.16 LF $0.35 LF $0.17 LF $376.00 $822.50 $705.50 150 12" Solid Line White - E ox 180 LF $3.00 LF0.00 $3.00 LF $540.00 $3.27 LF $588.60 151 24" Solid Line White - Paint 110 LF $2.20 LF $242.00 $2.20 LF $242.00 LF $264.00 152 153 Transplant Tree 11 TREE Bale Check 26 EACH $200.00 TREE $7.00 EACH $2,200.00 $182.00 $100.00 TREE $10.00 EACH $1,100.00 $260.00 _$2.40 $165.00 TREE $10.90 EACH $1,815.00 $283.40 154 155 156 Silt Fence, Type Machine Sliced 1450 LF Seeding - T a Lawn Restoration 1.3 ACRE Sodding - Type Lawn Restoration 3350 SY $1.25 LF $1,280.00 ACRE $2.00 SY $1,812.50 $1,664.00 $6,700.00 $2.00 LF $1,250.00 ACRE $2.10 SY $2,900.00 $1,625.00 $7,035.00 $2.20 LF $2,500.00 ACRE $2.60 SY $3,190.00 $3,250.00 $8,710.00 157 158 159 Seeding Mixture - 60B 125 LBS Commercial Fertilizer, 10-10-10 820 LBS Hydraulic Soil Stabilizer Type 6 2.6 1 TON $3.10 LBS $0.34 LBS $430.00 TON $387.50 $278.80 $1,118.00 $2.40 LBS $0.30 LBS $790.00 TON $300.00 $246.00 $2,054.00 $2.60 LBS $0.33 LBS $860.00 TON $325.00 $270.60 $2,236.00 Total - Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE FILEShareWunscipallaramsey/o1345 Bid Proposal As SHEET. BIDTABULATION BP -6 $329,695.80 $385,263.25 $359,054.15 oo inn Bid Schedule "F" - Storm Sewer - No. 02-09 Page Avenue NE Estimated Dresel Contracting Buffalo Bituminous $439,268.15 $89,710.00 $835,834.29 $132,625.60 $359,054.15 $88,004.50 Midwest Asphalt Item Description 160 15" RC Pi e A ron 161 24" RC Pipe Apron 162 27" RC Pipe Apron 163 15" RC Pie Sewer Desi n 3006 CL V all de the 164 21" RC Pie Sewer Design 3006 CL III all depths) 165 24" RC Pi e Sewer Desi n 3006 CL III (all depths) Quantity 5 EACH 1 EACH 1 EACH 840 LF 625 LF 360 LF Unit Price $400.00 EACH $1,050.00 EACH $1,200.00 EACH $21.30 LF $26.50 LF $28.00 LF Extension $2,000.00 $1,050.00 $1,200.00 $17,892.00 $16,562.50 $10,080.00 Unit Price $380.00 $460.00 $500.00 $23.00 $27.00 $29.00 EACH EACH EACH LF LF LF Extension $1,900.00 $460.00 $500.00 $19,320.00 $16,875.00 $10,440.00 Unit $410.00 $493.00 $540.00 $24.65 $29.35 $31.50 Price EACH EACH EACH LF LF LF Extension $2,050.00 $493.00 $540.00 $20,706.00 $18,343.75 $11,340.00 166 27" RC Pi e Sewer Design 3006 CL III all depths) 167 Connect to Existin Storm Sewer 285 1 LF EACH $35.00 $400.00 LF EACH $9,975.00 $400.00 $36.00 $450.00 $420.00 $775.00 $1,100.00 $1,400.00 $1,875.00 $70.00 LF EACH EACH EACH EACH EACH EACH CY $10,260.00 $450.00 $38.75 $479.00 LF EACH $11,043.75 $479.00 168 Construct Draina a Structure 27" 2 EACH $1,800.00 EACH $3,600.00 $840.00 $545.00 EACH $1,090.00 169 Construct Drainage Structure 2' x 3' 6 EACH $1,400.00 EACH $8,400.00 $4,650.00 $933.00 EACH $5,598.00 170 Construct Drain a e Structure Design 48" 4020 8 EACH $1,800.00 EACH 171 Construct Drain a e Structure Design 54" 4020 1 EACH $2,200.00 EACH 172 Construct Skimmer Structure 1 EACH $2,500.00 EACH $14,400.00 $2,200.00 $2,500.00 $8,800.00 $1,400.00 $1,875.00 $1,250.00 EACH $1,616.00 EACH $2,045.00 EACH $10,000.00 $1,616.00 $2,045.00 173 Random Ri Ra Class III 35 CY $75.00 CY $2,625.00 $2,450.00 $76.00 CY $2,660.00 Total - Bid Schedule "F" - Storm Sewer - No. 02-09 Page Avenue NE I $92,884.50 $80,220.00 $88,004.50 Total Bid Schedule "A" - Streets - No. 02-10 85th Street NE MSAP 217-102-04 Bid Schedule "B" - Storm Sewer - No. 02-10 85th Street NE MSAP 217-102-04 Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102-05 Bid Schedule "D" - Storm Sewer - No. 02-06 85th Street NE MSAP 217-102-05 Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE Bid Schedule "F" - Storm Sewer - No. 02-09 Page Avenue NE $403,497.10 $82,383.00 $730,718.50 $133,768.90 $329,695.80 $92,884.50 $472,225.50 $81,682.50 $783,669.00 $120,947.50 $385,263.25 $80,220.00 $439,268.15 $89,710.00 $835,834.29 $132,625.60 $359,054.15 $88,004.50 TOTAL ALL BID SCHEDULES $1,772,947.80 $1,924,007.75 $1,944,496.69 FILE: ShareWunicipal/aramsey/o1345 Bid ProposaLxls SHEET: BIO TABULATION BP -7 85TH STREET NE rsla acneauie '"A" - Streets - No. 02-10 85th Street NE 217-102-04 Item Description MSAP Estimated Quantity Hardrives Unit Price Extension Doboszonski & Sons, Inc. Unit Price Extension 1 Mobilization 2 Clearing and Grubbing 3 Remove Metal Culvert 4 Remove Concrete Curb & Gutter 1 1 230 20 LS LS LF LF $6,100.00 $2,700.00 $5.40 $5.00 LS LS LF LF $6,100.00 $2,700.00 $1,242.00 $100.00 $32,850.00 $6,028.00 $6.75 $2.50 LS LS LF LF $32,850.00 $6,028.00 $1,552.50 $50.00 5 Remove Wood Post Fence 150 LF $2.15 LF $322.50 $3.75 LF $562.50 6 Remove Railroad Ties 48 LF $6.45 LF $309.60 $12.50 LF $600.00 7 Remove Retaining Wall 150 SF $2.15 SF $322.50 $3.75 SF $562.50 8 Remove Bituminous Pavement 9500 SY $1.15 SY $10,925.00 $1.50 SY $14,250.00 9 Remove Wood Post 3 EACH $27.00 EACH $81.00 $25.00 EACH $75.00 10 Remove Metal Post 1 EACH $10.80 EACH $10.80 $65.00 EACH $65.00 11 Remove Sin 10 EACH $32.45 EACH $324.50 $33.00 EACH $330.00 12 Sawing Bit Pavement Full Depth) 370 LF $3.15 LF $1,165.50 $1.60 LF $592.00 13 Salvage & Reinstall Chain Link Fence 200 LF $14.00 LF $2,800.00 $13.65 LF $2,730.00 14 Salvage & Reinstall Wood PosWdoven Wire Fence 320 LF $12.20 LF $3,904.00 $11.55 LF $3,696.00 15 Salvage & Reinstall Wood Fence Posts 4 EACH $83.00 EACH $332.00 $80.25 EACH $321.00 16 Salvage & Reinstall Sin 2 EACH $48.65 EACH $97.30 $49.50 EACH $99.00 17 Common Excavation P 20000 CY $5.25 CY $105,000.00 $7.25 CY $145,000.00 18 Aggregate Base Class 5 19 Mill Bituminous Surface 2.0") 7500 75 TON SY $12.20 $6.75 TON SY $91,500.00 $506.25 $13.60 $5.25 TON SY $102,000.00 $393.75 20 Type LV 4 Wearing Course Mixture C 21 Type LV 3 Non -Wearing Course Mixture 8 22 Bituminous Material For Tack Coat 23 Adjust Gate Valve 2555 2280 900 2 TON TON GAL EACH $38.75 $28.60 $1.00 $148.00 TON TON GAL EACH $99,006.25 $65,208.00 $900.00 $296.00 $35.44 $29.30 $1.16 $250.00 TON TON GAL EACH $90,549.20 $66,804.00 $1,044.00 $500.00 24 Adjust Frame & Ring Casting 2 EACH $195.00 EACH $390.00 $250.00 EACH $500.00 25 Concrete Curb &Gutter Design 8618 26 6" Concrete Driveway Pavement 6500 62 LF SY $7.55 $29.00SY LF $49,075.00 $1,798.00 $7.70 $29.15 LF SY 1 $50,050.00 $1,807.30 FILE: Share Wlunicipallaramsey/ot345 Bid Proposal As SHEET BID TABULATION BP -8 00300 Item Description Estimated Ouanfity I IL,ir o.a Hardrives Doboszonski & Sons, Inc. 27 28 6" Concrete Valley Gutter 270 Traffic Control 1 -'Y SY LS "ALVIIJR/11 $29.00 SY $7,830.00 $2,430.00 LS $2,430.00 unit trice $29.15 SY $2,475.00 LS txtension $7,870.50 $2,475.00 29 sign Panels, Type C 108 SF $21.00 SF $2,268.00 $21.45 SF $2,316.60 30 31 4" Double Solid Line Yellow - Paint 2800 4" Double Solid Line Yellow - Epoxy 2800 LF LF $0.17 LF $476.00 $0.37 LF $1,036.00 $0.17 LF $0.35 LF $476.00 $980.00 32 33 4" Solid Line White - Epoxy 5730 12" Solid Line White - Epoxy 270 LF LF $0.18 LF $1,031.40 $3.25 LF $877.50 $0.18 LF $3.30 LF $1,031.40 $891.00 34 35 Bale Check 25 Silt Fence, Type Machine Sliced 500 EACH LF $10.80 EACH $270.00 $2.15 LF $1,075.00 $66.00 EACH $1.76 LF $1,650.00 $880.00 36 Seeding - Type Lawn Restoration 2 ACRE $1,350.00 ACRE $2,700.00 $105.00 ACRE $210.00 37 38 Sodding - Type Lawn Restoration 1000 Seeding Mixture - 60B 300 SY LBS $2.25 SY $2,250.00 $2.60 LBS $780.00 $2.37 SY $2.10 LBS $2,370.00 $630.00 39 Erosion Control Blanket, Category 1 700 SY $2.15 SY $1,505.00 $1.31 SY $917.00 40 Commercial Fertilizer, 20-10-10 1000 LBS $0.32 LBS $320.00 $0.26 LBS $260.00 41 Hydraulic Soil Stabilizer, Type 6 2.5 TON $854.00 TON $2,135.00 $577.50 TON $1,443.75 Total Bid Schedule "A" - Streets - No. 02-10 85th Street NE MSAP 217-102-0 $471,400.10 $547,413.00 Bid Schedule "B" - Storm Sewer - No. 02-10 85th Street NE MSAP 217-102- 04 Estimated Item Description Quantity Unit Price Extension Unit Price Extension 42 18" RC Pipe Apron 1 EACH $384.00 EACH $384.00 $432.32 EACH $432.32 43 24" RC Pipe Apron 1 EACH $461.00 EACH $461.00 $927.54 EACH $927.54 44 15" HDPE Pipe Drain 310 LF $17.20 LF $5,332.00 $16.12 LF $4,997.20 45 15" RC Pipe Sewer Design 3006 CL V all depths) 525 LF $22.15 LF $11,628.75 $25.70 LF $13,492.50 46 18" RC Pipe Sewer Design 3006 CL III all depths) 47 21" RC Pipe Sewer Desi n 3006 CL III all depths) 690 LF 315 LF $24.15 LF $26.70 LF $16,663.50 $8,410.50 $26.32 LF $28.42 LF $18,160.80 $8,952.30 48 24" RC Pipe Sewer Design 3006 CL III all de the 49 Connect to ExistingStorm Sewer 460 LF 1 EACH $30.70 LF $825.00 EACH $14,122.00 $825.00 $33.01 LF $677.61 EACH $15,184.60 $677.61 50 Construct Drainage Structure 2' x 3' 51 Construct Drain a e Structure Design 48" 4020 52 Construct Drain a e Structure 27" 53 Random RipRa Class III 6 EACH 9 EACH 1 EACH 15 Cy $1,350.00 EACH $1,430.00 EACH $1,050.00 EACH $75.70 CY $8,100.00 $12,870.00 $1,050.00 $1,135.50 $1,055.42 EACH $1,440.67 EACH $772.94 EACH $73.27 CY $6,332.52 $12,966.03 $772.94 $1,099.05 Total - Bid Schedule "B" - Storm Sewer - No. 02-10 85th Street NE MSAP 117 FILE: ShareWunicipal/aramsey/o1345 Bid Proposal. As SHEET: BID TABULATION BP -9 $80,982.25 $83,995.41 00300 Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102-05 Estimated Item Description 0iinnnfi. Hardrives I Ini4 Pri- 1:-4......:,... I Doboszonski & Sons, Inc. 54 Mobilization 1 LS $9,950.00 LS $9,950.00 $21,850.00 LS $21,850.00 55 Field Office Type D 1 EACH $3,950.00 EACH $3,950.00 $5,500.00 EACH $5,500.00 56 Clearing and Grubbing 1 LS $4,865.00 LS $4,865.00 $6,028.00 LS $6,028.00 57 Remove Sewer Pipe (Storm) 497 LF $8.65 LF $4,299.05 $10.00 LF $4,970.00 58 Remove Concrete Culvert 335 LF $8.65 LF $2,897.75 $10.00 LF $3,350.00 59 Remove Metal Culvert 303 LF $5.40 LF $1,636.20 $6.75 LF $2,045.25 60 Remove Pipe Culvert 40 LF $5.40 LF $216.00 $7.50 LF $300.00 61 Remove Bituminous Curb 430 LF $1.37 LF $589.10 $0.75 LF $322.50 62 Remove Concrete Curb & Gutter 50 LF $4.85 LF $242.50 $2.50 LF $125.00 63 Remove Concrete Driveway Pavement 642 SF $0.81 SF $520.02 $0.50 SF $321.00 64 Remove Retaining Wall 100 SF $3.25 SF $325.00 $1.56 SF $156.00 65 Remove Bituminous Pavement 12000 SY $1.15 SY $13,800.00 $1.50 SY $18,000.00 66 Remove Bituminous Flume 4 EACH $60.00 EACH $240.00 $25.00 EACH $100.00 67 Sawing Concrete Pavement Full Depth) 40 LF $4.70 LF $188.00 $4.95 LF $198.00 68 Sawing Bit Pavement (Full Depth) 285 LF $3.15 LF $897.75 $1.60 LF $456.00 69 Salvage & Reinstall Woven Wire Fence 250 LF $11.90 LF $2,975.00 $11.55 LF $2,887.50 70 Salva e & Reinstall Chain Link Fence 520 LF $14.00 LF $7,280.00 $13.65 LF $7,098.00 71 Salva e & Reinstall Fence Plastic Rail 1080 LF $16.20 LF $17,496.00 $15.75 LF $17,010.00 72 Salvage & Reinstall Fence (Split Rail) 300 LF $10.80 LF $3,240.00 $10.50 LF $3,150.00 73 Salvage & Reinstall Wood Post 25 EACH $81.00 EACH $2,025.00 $80.25 EACH $2,006.25 74 Salvage & Reinstall Sin 4 EACH $48.65 EACH $194.60 $49.50 EACH $198.00 75 Abandon Culvert 1 EACH $215.00 EACH $215.00 $750.00 EACH $750.00 76 Common Excavation (P) 35000 CY $4.90 CY $171,500.00 $7.25 CY $253,750.00 77 Muck Excavation 2000 CY $4.60 CY $9,200.00 $4.95 CY $9,900.00 78 Class 5 Aggregate Base 10790 TON $12.20 TON $131,638.00 $13.60 TON $146,744.00 79 Class 7 Aggregate Base 8" 11310 TON $3.99 TON $45,126.90 $13.50 TON $152,685.00 80 Mill Bituminous Surface (2") 50 SY $6.75 SY $337.50 $5.25 SY $262.50 81 Type LV 4 Wearing Course Mixture (C) 3325 TON $38.65 TON $128,511.25 $35.44 TON $117,838.00 82 Type LV 3 Non -Wearing Course Mixture B 3040 TON $28.60 TON $86,944.00 $29.30 TON $89,072.00 83 Bituminous Material For Tack Coat 1000 GAL $1.00 GAL $1,000.00 $1.161 GAL $1,160.00 84 Ad ust Frame & Ring Casting 1 EACH $195.00 EACH $195.00 $250.00 EACH $250.00 FILE. ShareWunicipal/aramsey/o1345 Bid Proposal.xls SHEET: BID TABULATION BP -10 00300 Item Description Hardrives Estimated Ouantity I I Mif P'7rn v Doboszonski & Sons, Inc. 85 86 -- -- Concrete Curb & Gutter Design 8618 8700 1 LF 6" Concrete Driveway Pavement 150 SY $7.55 LF $29.00 SY $65,685.00 $4,350.00 unit rrlce $7.70 LF $29.15 SY CXienslon $66,990.00 $4,372.50 87 6" Concrete Valley Gutter 390 SY $29.00 SY $11,310.00 $29.15 SY $11,368.50 88 Block Retaining Wall 700 SF $19.45 SF $13,615.00 $19.80 SF $13,860.00 89 Traffic Control 1 LS $2,430.00 LS $2,430.00 $2,475.00 LS $2,475.00 90 Sign Panels, Type C 130.5 SF $21.00 SF $2,740.50 $21.45 SF $2,799.23 91 4" Double Solid Line Yellow - Paint 3750 LF $0.17 LF $637.50 $0.17 LF $637.50 92 4" Double Solid Line Yellow - Epoxy 3750 LF $0.37 LF $1,387.50 $0.35 LF $1,312.50 93 4" Solid Line White - Epoxy 8500 LF $0.18 LF $1,530.00 $0.18 LF $1,530.00 94 12" Solid Line White - Epoxy 135 LF $3.25 LF $438.75 $3.30 LF $445.50 95 Coniferous Tree 8' Ht. B & B 10 TREE $295.00 TREE $2,950.00 $275.00 TREE $2,750.00 96 Deciduous Tree 8' Ht. BR 10 TREE $110.00 TREE $1,100.00 $100.00 TREE $1,000.00 97 Transplant Tree (Spade Size 42") 11 TREE $175.00 TREE $1,925.00 $100.32 TREE $1,103.52 98 Transplant Tree (Spade Size 60" 11 TREE $175.00 TREE $1,925.00 $165.76 TREE $1,823.36 99 Bale Check 50 EACH $10.80 EACH $540.00 $66.00 EACH $3,300.00 100 Silt Fence, Type Machine Sliced 5000 LF $2.15 LF $10,750.00 $1.76 LF $8,800.00 101 Seeding - Type Lawn Restoration 7.5 ACRE $1,350.00 ACRE $10,125.00 $105.00 ACRE $787.50 102 Seeding Mixture - 60B 1125 LBS $2.60 LBS $2,925.00 $2.10 LBS $2,362.50 103 Sodding - Type Lawn Restoration 3000 SY $2.25 SY $6,750.00 $2.36 SY $7,080.00 ion Control Blanket, Category 1 700 SY $2.15 SY $1,505.00 $1.31 SY $917.00 T106Hyd,aulic mercial Fertilizer, 10-10-10 3750 LBS $0.32 LBS $1,200.00 $0.26 LBS $975.00 Soil Stabilizer T e 6 9.4 TON $854.00 TON $8,027.60 $577.50 TON $5,428.50 Total - Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102 05 $806,341.47 FILE: Share Wtunicipal/aramsey/oQ,15 Bid Proposal As SHEET: BIO TABULATION BP -11 $1,010,601.11 00300 Bid Schedu - Storm Sewer - No. 02-06 85th Street NE MSAP 217-102- 05 Estimated Ho_ "es Doboszonski & Sons, Inc. Item Desrrintinn n ,.:.. 11-.:. n-:_ 107 12" RC Pipe Apron 1 EACH $340.00 EACH $340.00 $384.28 EACH $384.28 108 15" RC Pipe Apron 4 EACH $359.00 EACH $1,436.00 $403.63 EACH $1,614.52 109 18" RC Pipe Apron 6 EACH $384.00 EACH $2,304.00 $432.32 EACH $2,593.92 110 24" RC Pipe Apron 2 EACH $460.00 EACH $920.00 $927.50 EACH $1,855.00 111 12" RC Pipe Sewer Design 3006 CL V (all depths) 30 LF $13,512.50 $1.50 $619.50 $22.22 LF $666.60 112 15" RC Pie Sewer Design 3006 CL V all depths) 923 LF $99.00 F $20,444.45 $27.79 LF $25,650.17 113 18" RC Pie Sewer Design 3006 CL III (all depths) 1070 LF $543.85 F $25,840.50 $28.09 LF $30,056.30 114 21" RC Pipe Sewer Desi n 3006 CL III all de the 1050 LF f$20FF F $28,035.00 $29.14 LF $30,597.00 115 24" RC Pi e SewerDesi n 3006 CL III all de the 223 LF $66,452.00 F $6,846.10 $30.05 LF $6,701.15 116 Connect to Existin Storm Sewer 3 EACH H $2,475.00 $677.59 EACH $2,032.77 117 Construct Draina a Structure 27" 2 EACH H $2,100.00 $780.44 EACH $1,560.88 118 Construct Drainage Structure 2'x 3' 5 EACH $1,350.00 EACH $6,750.00 $1,090.74 EACH $5,453.70 119 Construct Drain a e Structure Design 48" 4020 12 EACH $1,430.00 EACH $17,160.00 $1,521.87 EACH $18,262.44 120 Construct Drain a e Structure Design 54" 4020 2 EACH $2,035.00 EACH $4,070.00 $2,028.84 EACH $4,057.68 121 Construct Skimmer Structure 2 EACH $2,760.00 EACH $5,520.00 $2,128.56 EACH $4,257.12 122 Random RipRap Class III 75 CY $75.70 CY $5,677.50 $71.11 CY $5,333.25 Total - Bid Schedule "D" - Storm Sewer - No. 02-06 85th Street NE MSAP 217-102-05 Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE Estimated Item Desrrintinn r). -Ch, I I1..:. n-:-- $130,538.05 $141,076.78 123 Mobilization 1 LS $6,975.00 LS - $6,975.00 $21,850.00 - LS uawn $21,850.00 124 Clearing and Grubbing 1 LS $540.00 LS $540.00 $6,028.00 LS $6,028.00 125 Remove Concrete Culvert 6 LF $10.80 LF $64.80 $10.00 LF $60.00 126 Remove Metal Culvert 400 LF $5.40 LF $2,160.00 $6.75 LF $2,700.00 127 Remove Concrete Curb & Gutter 150 LF $4.30 LF $645.00 $2.50 LF $375.00 128 Remove Concrete Driveway Pavement 712 SF $0.81 SF $576.72 $0.50 SF $356.00 129 Remove Bituminous Pavement 11750 SY $1.15 Y $13,512.50 $1.50 SY $17,625.00 130 Sawin Concrete Pavement Full Depth) 20 LF $4.70 F J�L $94.00 $4.95 LF $99.00 131 Sawing Bit Pavement Full Depth) 570 LF $3.15 LF $1,795.50 $1.60 LF $912.00 132 Salvage Retaining Wall 73 SF $7.45 SF $543.85 $6.25 SF $456.25 133 Salvage & Reinstall Sin 24 EACH $48.65 EACH $1,167.60 $49.50 EACH $1,188.00 134 Salva e Casting 1 EACH $90.00 EACH $90.00 $250.00 EACH $250.00 135 Common Excavation (P) 14800 CY $4.49 CY $66,452.00 $5.75 CY $85,100.00 FILE: ShareWunicipal/aramsey/x1345 Bid Proposal.xls SHEET: BID TABULATION BP -12 00300 Item Description 136 Class 5 Aggregate Base Estimated Quantity 6100 TON Hardrives Unit Price $12.20 TON Extension $74,420.00 Doboszonski & Sons, Inc. Unit Price Extension $13.60 TON $82,960.00 137 Mill Bituminous Surface 2" 75 SY $6.75 SY $506.25 $5.25 SY $393.75 138 Type LV 4 Wearing Course Mixture (C) 2050 TON $39.00 TON $79,950.00 $35.44 TON $72,652.00 139 Type LV 3 Non -Wearing Course Mixture (B) 1920 TON $28.70 TON $55,104.00 $29.30 TON $56,256.00 140 Bituminous Material For Tack Coat 700 GAL $1.00 $700.00 $1.16 GAL $812.00 141 Adjust Frame & Rin Casting1 EACH $195.00 $195.00 $250.00 EACH $250.00 142 Concrete Curb & Gutter Design B618 5380 LF $7.55$40,619.00 EEACH $7.70 LF $41,426.00 143 6" Concrete Drivewa Pavement 100 SY $29.00 $2,900.00 $29.15 SY $2,915.00 144 6" Concrete Valley Gutter 50 SY $29.00 SY $1,450.00 $29.15 SY $1,457.50 145 Traffic Control 1 LS $1,890.00 LS $1,890.00 $1,925.00 LS $1,925.00 146 Sign Panels, Type C 73.5 SF $21.00 SF $1,543.50 $21.45 SF $1,576.58 147 4" Double Solid Line Yellow - Paint 2350 LF $0.17 LF $399.50 $0.17 LF $399.50 148 4" Double Solid Line Yellow - Epoxy 2350 LF $0.37 LF $869.50 $0.35 LF $822.50 149 4" Solid Line White - Epoxy 4150 LF $0.18 LF $747.00 $0.18 LF $747.00 150 12" Solid Line White - Epoxy 180 LF $3.25 LF $585.00 $3.30 LF $594.00 151 24" Solid Line White - Paint 110 LF $2.35 LF $258.50 $2.42 LF $266.20 152 Transplant Tree 11 TREE $175.00 TREE $1,925.00 $165.76 TREE $1,823.36 153 Bale Check 26 EACH $10.80 EACH $280.80 $66.00 EACH $1,716.00 154 Silt Fence, Type Machine Sliced 1450 LF $2.15 LF $3,117.50 $1.76 LF $2,552.00 155 Seeding - Type Lawn Restoration 1.3 ACRE $1,350.00 ACRE $1,755.00 $105.00 ACRE $136.50 156 Sodding - Type Lawn Restoration 3350 SY $2.25 SY $7,537.50 $2.36 SY $7,906.00 157 -e- ding Mixture - 60B 125 LBS $2.60 LBS $325.00 $2.10 LBS $262.50 158 Commercial Fertilizer, 10-10-10 820 LBS $0.32 LBS $262.40 $0.26 LBS $213.20 159 Hydraulic Soil Stabilizer Type 6 2.6 TON $854.00 TON $2,220.40 $577.50 TON $1,501.50 Total - Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE I $374,177.82 $418,563.34 FILE: ShareUdunicipaI1aramsey/o1345 Bid Proposal As SHEET: BID TABULATION BP -13 00300 Bid Schedule "F" - Storm Sewer - No. 02-09 Page Avenue NE Hardrives Estimated Item Descrintion n.. wti. I 1 :♦ r,_:__ Doboszonski 8 Sons, Inc. 160 15" RC Pipe Apron 5 EACH __.._ . ..__ $359.00 EACH `.,..,.......I $1,795.00 vnn r $403.64 111. EACH CAlullblu II $2,018.20 161 24" RC Pipe Apron 1 EACH $460.00 EACH $460.00 $927.54 EACH $927.54 162 27" RC Pipe Apron 1 EACH $500.00 EACH $500.00 $1,176.00 EACH $1,176.00 163 15" RC Pipe Sewer Design 3006 CL V (all depths) 840 LF $22.15 LF $18,606.00 $24.28 LF $20,395.20 164 21" RC Pipe Sewer Design 3006 CL III (all depths) 625 LF $26.70 LF $16,687.50 $28.47 LF $17,793.75 165 24" RC Pipe Sewer Design 3006 CL III all depths) 360 LF $28.55 LF $10,278.00 $31.87 LF $11,473.20 166 27" RC Pipe Sewer Design 3006 CL III all depths) 285 LF $37.70 LF $10,744.50 $37.81 LF $10,775.85 167 Connect to Existing Storm Sewer 1 EACH $825.00 EACH $825.00 $677.61 EACH $677.61 168 Construct Drainage Structure 27" 2 EACH $1,050.00 EACH $2,100.00 $781.38 EACH $1,562.76 169 Construct Drainage Structure 2' x 3' 6 EACH $1,350.00 EACH $8,100.00 $1,061.56 EACH $6,369.36 170 Construct Drain a e Structure Design 48" 4020 8 EACH $1,430.00 EACH $11,440.00 $1,460.82 EACH $11,686.56 171 Construct Drain a e Structure Design 54" 4020 1 EACH $2,035.00 EACH $2,035.00 $2,087.96 EACH $2,087.96 172 Construct Skimmer Structure 1 EACH $2,785.00 EACH $2,785.00 $2,128.58 EACH $2,128.58 173 Random RipRap Class III 35 CY $75.70 CY $2,649.50 $71.11 CY $2,488.85 Total - Bid Schedule "F" - Storm Sewer - No. 02-09 Page Avenue NE I $89,005.50 $91,561.42 Total Bid Schedule "A" - Streets - No. 02-10 85th Street NE MSAP 217-102-04 $471,400.10 $547,413.00 Bid Schedule "B" - Storm Sewer - No. 02-10 85th Street NE MSAP 217-102-04 $80,982.25 $83,995.41 Bid Schedule "C" - Streets - No. 02-06 85th Street NE MSAP 217-102-05 $806,341.47 $1,010,601.11 Bid Schedule "D" - Storm Sewer - No. 02-06 85th Street NE MSAP 217-102-05 $130,538.05 $141,076.78 Bid Schedule "E" - Streets - No. 02-09 Page Avenue NE $374,177.82 $418,563.34 Bid Schedule "F" - Storm Sewer - No. 02-09 Page Avenue NE $89,005.50 $91,561.42 TOTAL ALL BID SCHEDULES $1,952,445.19 $2,293,211.05 FILE. ShareWunicipal/aramsey/o1345 Bid Proposal. zls SHEET: BID TABULATION BP -14 00300 RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS WHEREAS, as directed by the City Administrator, Hakanson Anderson Associates, Inc. has prepared plans and specifications for the Improvements of 2003 Road Maintenance Project. And has presented such plans and specifications to the council for approval; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO MINNESOTA: 1. Such plans and specifications, dated April 24, 2003, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The City Engineer shall prepare and cause to be inserted in the official paper and in the Construction Bulletin, an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall specify the work to be done, shall state that bids will be opened at 2:00 on May 22, 2003, in the council chambers of the city hall, 8899 Nashua Avenue, Otsego, Minnesota, 55330. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the clerk for 5.0 per cent of the amount of such bid Larry Fournier, Mayor Judy Hudson, Clerk GAMunicipa1W0TSEG0\351 \ot351 res.doc APR 23 '03 03:OOPM DARREL FARR DEVELOPMENT darrel a Farr -development c p r P O r C I 1 o R LL let :"S 6L'il[j fOre.VZV. wkn -%%:5 cin April 18, 2003 Mr. Mike P-,obertson Ciry /Administrator C EY OF OTSEC,O 8899 Nl-�". Nashua Avenue I;lk River, Minnesota 55330 RE: K�dredge Crossings cDtSe-o, Minnesota CY Dear ?Mike: P.2/2 We hereby requc:sz the City of Orse,) extend sewer and water to the referenced property to facilitate development of same in 2003. Please feel free CO call me if you need anything further in this regard. alcerely, DARREL A. 1-ARR D1rvF-L0p NfENT CORPORATION LuEia A. ardner President L1G.mtw C: Mike G;ur Dave Nash Dan Licht Ron Wagner 3025 harbor lane, suite 317 plymourh, minnesota 55dd7 763.55369972 t, 763.553.9983Eax '1 Hakerson Anderson Assoc.,Inc. C1vN EngWwrrs and Land Survayws _#112 Anoka, K—.t. 55303 763-427-3860 FAX 763-427-0520 / 7 3 1 'L I I 5 � s i Q s JAMES TRUNK 21MMERMAN SANITARY SEWER �" �, j'' fiW i _ 0 O Z44 Q vi ENNUM b# IFK. i 11 r '"8-1 / d WASTE WATER PLANT H a M riOD .otl «„ . 1 I TRUNK WATERMAIN t , � 70TH STREET 70 1 2 5 5 6 6`C a e '1 Hakerson Anderson Assoc.,Inc. C1vN EngWwrrs and Land Survayws 301 Tlarst. Ave. Anoka, K—.t. 55303 763-427-3860 FAX 763-427-0520 KITTREDGE CROSSINGS PETITION FOR CITY UTILITIES CITY OF OTSEGO, MINNESOTA EXHIBIT A '4.'003 OT901 itl_en \Imtl Pre' cts\DTaDi\a+ Kiliretl n-Paltl+ Hakanson 1iAnderson 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 ASSOC., Inc. Phone: 763/427-5860 Fax: 763/427-0520 April 28, 2003 Honorable Mayor and City Council City of Otsego 8899 Nashua Avenue NE Otsego, MN 55330 Re: Hidden Creek Trail Wetland Change Order Dear Honorable Mayor & City Council: We have reviewed the timeline of the project to determine when and why the extra charge for wetland restoration was incurred by Rush -Mar Land Development. Date Description 8/1/01 Engineering Review #2 Item 44 Under Grading and Drainage — Wetland Delineation required on portion on north edge of City property. 10/1/01 Precon Meeting — Grading starts 10/22/01 Draft Development Agreement 10/25/01 Kjolhaug letter requiring change to wetland for proper mitigation of a Type III wetland the roadway on the north side of City property. 1/16/02 Wetland Permit Application 3/7/02 Notice of Wetland Decision With the above timeline, it is apparent the Developer went forward with the project prior to resolving the wetland issues in order to complete the project before winter construction suspension. The additional cost was not caused by any City action, but rather by wetland requirements. The cost could be added (prorated) into the cost of the road access fee for any future connections from the north, but the city of Otsego should not be held in any way responsible to cost share the Change Order. Civil 6- Municipal �� Engineering Land Surveying for If you have any questions, please contact me at 763-427-5860. Sincerely, Hakanson Anderson Assaiates, Inc. J RJW:dlc Enclosures cc: Mike Robertson, Administrator Judy Hudson, Clerk Andy MacArthur, City Attorney Dan Licht, NAC Hakanson Anderson Assoc., Inc. RESOLUTION NO. RESOLUTION ACCEPTING BID WHEREAS, pursuant to an advertisement for bids for the Construction of the extension of Improvement Project No. 02-10 85th Street NE (MSAP 217-102-04), No. 02-06 85th Street NE (MSAP 217-102-05) and No. 02-09 Page Avenue NE Street Construction, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Dresel Contracting, Inc. $1,772,947.80 Buffalo Bituminous $1,924,007.75 Midwest Asphalt $1,944,496.69 Hardrives $1,952,445.19 Doboszenski & Sons $2,293,211.05 AND WHEREAS, it appears that Dresel Contracting of Chisago City, Minnesota is the lowest responsible bidder, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO MINNESOTA: 1. The Mayor and Clerk are hereby authorized and directed to enter into a contract with Dresel Contracting of Chisago City, Minnesota in the name of the Improvement of the Construction of Improvement Project No. 02-10 85th Street NE (MSAP 217-102-04), No. 02-06 85" Street NE (MSAP 217-102-05) and No. 02-09 Page Avenue NE Street Construction, according to the plans and specifications therefore approved by the City Council and on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bonds made with their bids, except that the bid bond of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the city council this 28th day of April 2003. Larry Fournier, Mayor Judy Hudson, Clerk G:\Municipal\AOTSEGO\345\OT34ResACCEPT BID.doc Michael C. Couri- Andrew J. MacArthur Robert T. Ruppe— David R. Wendorf 'Also licensed in Illinois —Also licensed in California April 24, 2003 City Council Members City of Otsego c/o Judy Hudson, City Clerk 8899 Nashua Avenue NE Otsego, MN 55330 RE: Water Tower Site Dear Council Members: COURT & MACAR THUR Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, AN 55376-0369 (763) 497-1930 (763) 497-1599 (FAA9 couriandmacarthur@pobox. com Attached please find a fax from Lucinda Gardner of Farr Development relative to City acquisition of the proposed water tower site. She has proposed a sale for $50,000.00 per acre, the same base land value approved by the City for the wastewater treatment site. She has calculated the site at approximately 1. 15 acres for a total purchase price of $57,392.00. If this amount is satisfactory, I would request that the Council by motion approve the sale price and authorize us to proceed with acquisition of the property. Please note that there will be additional costs related to the transaction including closing, recording, and title insurance costs. The total amount expended by the City on acquisition of the property will be part of the Engineer's final Water Availability Charge calculations for the area. I will be available to further discuss this matter at the City Council meeting on Monday evening. Very trul ours, n ew J. cArthur OM & MACARTHUR Encl. cc: Ron Wagner, City Engineer Lucinda Gardner, Farr Development APR 23 '03 03:1gPh1 DARREL FARR DEVELCWENT FA P. 1'1 DA.RREL A. FARR: 'D'EVE'LOPMENT CORP. 3025 HAAB C)R LANE, SUITE 4317 'PLYMOUTH, MLS 55447. - PRONE: (763) 553-9972 FAQ:: (763) 553,9983 FACSXMTI.R pl=bm Nt�e � 87L141�C3 13 v�G�tr� t ie AJEvIgW conmarr C3' e„ss s�.x C�1 I.IzA= xz c'xo.z IA WIMUMMUMN . _ W ,lig L�m.1 , i1 i 19.1 Imp MEMO TO: Andy MacArthur, City Attorney FROM: Judy Hudson, City Clerk DATE: April 24, 2003 Re: Liquor application for Otsego spirits, LLC. Attached is a copy of the Liquor application for Otsego Spirits, LLC. Please review. This will be on the City Council Agenda April 28, 2003 for consideration. OF A".: Minnesota Department of Public Safety a ALCOHOL AND GANIDLING ENFORCEMENT DIVISION 444 Cedar St., Suite 133, St. Paul, MN 55101-5133 (651) 296-6979 F.-kX (651)297-5259 TTY(651)232-6555 APPLICATION FOR OFF SALE INTOXICATING LIQUOR LICENSE No license will be approved or released until the 520 Retailer ID Card fee is received Workers compensation insurance company. Name Policy # Licensee's MLN Sales and Use Tax ID # 6376111 To apply for a sales and use tax ID #, call (651) 296-6151 If a corporation, an officer shall execute this application If a partnership, a partner shall execute this anolication_ Licensee ivame (Individual, Corporation, Partnership, LLC) Social Security.4 License Location (Street Address & BI k xt Trade Name or DBA Otsego Spirits, LLC oc o.) License rertoa Applicant's Home Phone # 9025 Ouaday Ave NE From To Cts` County State Zip Code Otsego Wright MN 55330 Name of Store Manager Business Phone Number DOB (Individual Applicant) If a corporation or LLC state name, date of birth, Social Security # address, title, and shares held by each officer. If a partnership, state names, address and date of birth of each partner. Partner Officer (First, middle, last) Todd Plais ted DOB 7-25-63 SS# 77-86-0719 Title Shares 33,3/ Address, City, State Zip Code 5, Partner Officer (First, middle, last) DOB SS# Title Shares ��e ss GGt�y� State Zi Code lffi �olcla�ci It p lilliat Christian 7-x-60 73-78-8820 •_T� m 55374 rtner Officer (First, middle, last) DOB SS# Title Shares3 ate, Zip Code Ric S'r 8-5-58 469-74-6311 33.33 55398 Partner Officer (First, middle, last) DOB SS# itle Shares Address, City, State, Zip Code 1. If a corporation, date of incorporation ti 7i , state incorporated in 141A uvSe,77'4amount paid in capital If a subsidiary of any other corporation, so state and give purpose a corporation If incorporated under the laws of another state, is corporation authorized to do business in the state of Minnesota? ❑ Yes ❑ No 2. "Describe premises to which license applies; such as (first floor, second floor, basement, etc.) or if entire building, so state. h/2ST FLao/L 3. Is establishment located near any state university, state hospital, training school, reformatory or prison? EYes Po If yes state approximate distance. 4. Name and address of building owner: 0 - 'elo SP//Z/r$ a& /55T 26 fit/ Has owner of building any connection, directly or indirectly, with applicant? Y Yes ❑ No 5. Is applicant or any of the associates in this application, a member of the governing body of the municipality in which this license is to be issued? ❑ Yes X No If yes, in what capacity? 6. State whether any person other than applicants has any ght, title or interest in the furniture, fixtures or equipment for which license is applied and if so, give name and details. 7. Have applicants any interest whatsoever, directly or indirectly, in any other liquor establishment in the state of Minnesota,.? Yes 17 No If yes, give name and address of establishment. 2(C�y �"C 7p�L &4eeW0&WS 3. Are the premises now occupied or to be occupied by the applicant entireiy separate and exclusive from any other business establishment? Wes ❑ No 9. State whether applicant has or will be granred, an On sale Liquor License in conjunction with this Off Sale Liquor License and for the same premises. CYes )'No ❑ Will be granted l0. State whether applicant has or will be granted a Sunday On Sale Liquor License in conjunction with the regular On Sale Liquor License. C Yes t4- No C Will be granted it. If this application is for a County Board Off Sale License, state the distance in miles to the nearest municipality. 12. State Number of Employees 1. State whether applicant or any. of the associates in this application, have ever had an application for a liquor license rejected by any municipality or state authority; if so, give dates and details. &M 2. Has the applicant or any of the associates in this application, during the five years immediately preceding this application ever had a license under the Minnesota Liquor Control Act revoked for any violation of such laws or local ordinances; if so, give dates and details. N/A 3. Has applicant, partners, officers, or employees ever had any liquor law violations in Minnesota or elsewhere, including State Liquor Control penalties? C Yes YNo If yes, give dates, charges and final outcome. 4. During the past license year, has a summons been issued under the Liquor Civil Liability Law (Dram Shop) NI.S. 340A.802. ❑ Yes �(No If yes, attach a copy of the summons. This licensee must have one of the following: (ATTACH CERTIFICATE OF INSURANCE TO THIS FORM.) Check one C A. Liquor Liability Insurance (Dram Shop) - S50,000 per person, $100,000 more than one person; S 10,000 property destruction; 550,000 and S 100.000 for loss of means of support. or B. A surety bond from a surety company with minimum coverage as specified in A. ❑ C. A certificate from the State Treasurer that the licensee has deposited with the state, trust funds having market value of $100,000 or S 100,000 in cash or securities. runt name of applicant & title Signature o A scant Date REPORT BY POLICE\SHERIFF'S DEPARTMENT This is to certify that the applicant and the associates named herein have not been convicted within the past five years for any violation of laws of the State of Minnesota or municipal ordinances relating to intoxicating liquor except as follows: t..r Police/Sheri s Department Title Signature County Attorney's Signature PS 9136-98 IivIPORTANT NOTICE All retail liquor licensees must have a current Federal Special Occupational Stamp. This stamp is issued by the Bureau of Alcohol, Tobacco, and Firearms. For information call (651)726-0220 q,17o 3 CITY OF OTSEGO 8899 Nashua Avenue NE Otsego, MN 55330 APPLICATION FOR LICENSE On -Sale Intoxicating Liquor License Pagel of 3 On -Sale Sunday Liquor License On -Sale Wine Off -Sale Liquor License On -Sale 3.2 Malt Liquor License Off -Sale 3.2 Beer License Workers Compensation Insurance Company Policy# LICENSEE'S SALES & USE TAX ID # To apply for sales tax umber, call 651-296-6181 or 1-800-657-3777 Applicant's name (Business, partnership, corporation) DOB Social Security # DBA or trade name 01,3640 <S,P//2iT,5', LLC License address Business phone Applicant's home phone %/SSS 205- '7P N•ic/.•�/o3-Hyl-/�o0 �1o3-f�-t�&S�v City County State Zip Code License Period From TO vrve name, resiaence, title and date of birth for all partners, or the officers and directors of a corporation. Also, state the Partnership interest of each Partner and for a corporation the Percent of stock held by Name each officer. Social Security # Title DOB Percent stock or partnership interest Address City State �S -2 _17 44V1 Name Social Security # Title DOB Percent stock or partnership interest 2�riCl.¢n4 C•ih2i5•rjAJ -)S'c1 %C'�� Address City State Z I r 2 cl l', �� r�,t,'Q� n. L ju C),/,44 5 A >til Name Social Security # Title DOB Percent stock or partnership interest RICA V NV J:�F. 3,/ Address City State G4,G,S7 /yc�n' Sty T i�s9tilG/1�r ,� tiI'V Date of into oration State of incorporation Certificate Number 912 -72 MA/ 3x323• -ac Is corporation authorized to do business in Minnesota? Purpose of corporation If a subsidiary of another corporation, give name an -ddress of parent corporation 0FK- SA i— L-lq voc i. pescribe premises to be icensed (location, facilities). lar i�, gcoC%�/17onl 071 Floor establishment is located on Seating capacity Hours food will be available Number of people restaurant employs w urrloer of montns per year establishment will be open Name of manager /2 Application for Liquor License 2. If this establishment is in conjunction with any other business (resort, etc.), describe business Page 2 of 3 3. Has applicant, partners, officers or employees ever had any Liquor Law violations in Minnesota or elsewhere, including State Liquor Control Penalties? Yes X No If yes, give date, charges and final outcome. 4. Is the applicant or any partner, officer, director, agent, employee, or anyone having an interest in relation to this application a member of the City Council in which the license will be issued? Yes X No If yes, in what capacity? (if the applicant for this license or any of the associates is the spouse of a member of the governing body or where a family relationship exists, the member shall not vote on this application.) (PS 9015-94) X Yes No 5. Have the applicants any interest, directly or indirectly, in any other liquor establishment in the city issuing this license? If yes, give the name and address of the establishment. _ X'166 11 SC/fQC�/�F,2 I�iAC�u�'cO y (� /li 16 �4w— Yes �< No 6. -W u r, urc Pasr License year, ttas a summons been issued under the Liquor Civil Liability Law (Drum Shop) M.S. 340A.802. If yes, attach a copy of the summons. Yes k No 7. Will you serve liquor on Sunday? Amount of Sunday License Fee. I certify that I have read the above questions and that the answers are true and correct to the best of my knowledge. ,M9 901-715T*0 The license must have one of the following: Intazicating Liquor License William Christian Date 7A. One Ricky Schroeder Date Liquor Liability Insurance (Dram Shop) - $1,000,000 per person; S 1,500,000 more than one person; S 100,000 property V r , Destruction; 5100,000 for loss of means of support. ATTACH "CERTIFICATE OF INSURANCE" TO THIS FORM. or _B. A Surety bond from a surety company with minimum coverage as specified above in A. or _C. A certificate of the State Treasurer that the licensee has deposited with the State Treasurer S 1,500,000.00 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of 1.5 million dollars. 3.2 Liquor License Check One _A. Liquor Liability Insurance (Dram Shop) - S50,000 per person; S100,000 more than one person; S 10,000 property Destruction; 550,000 and 5100,000 for loss of means of support. ATTACH "CERTIFICATE OF INSURANCE" TO THIS FORM. or _B. A Surety bond from a surety company with minimum coverage as specified above in A. or _C. A certificate from the State Treasurer that the licensee has deposited with the State Treasurer S 100,000.00 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of 5100,000.00. Certification of Compliance Minnesota Workers' Compensation Law Minnesota Statute, Section 176.182 requires every state and local licensing agency to withhold the issuance or renewal of a license or permit to operate a business or engage in an activity in Minnesota until the applicant presents acceptable evidence of compliance with the workers' compensation insurance coverage requirement of MSS Chapter 176. The information required is: the name of the insurance company, the policy number, and dates of coverage or the permit to self -insure. This information will be collected by the licensing agency (City of Otsego) and retained in their files. This information is required by law.. Licenses and permits to operate a business may not be issued or renewed if it is not provided and/or falsely reported. Furthermore, if this information is not provided or falsely stated, it may result in a 52,000 penalty assessed against the applicant by the Commissioner of the Minnesota Department of Labor and Industry. Workman's Compensation Coverage Information Insurance Company NAME: (Not the insurance Agent) Policy Number: Dates of Coverage to OR I am not required to have workers' compensation liability coverage because: (check one) (v) 1 have no employees ( ) I have only volunteers ( ) I am self Insured (Include permit to self -insure) ( ) I have no employees who are covered by the workers' compensation law (these include: Spouse, Parents, children and certain farm employees) I certify that the information provided above is accurate and complete. I will keep a valid workers' compensation policy in effect at all times as required by law. Name: 01-5 � dy"� �' � � / � �— Phone#: �3 100 Doing Business as: /U%C Gy�NE SP/2%r5 (Business name if different) Business Address: !Qw" City, State, Zip: Z s 11&1104-1 jh� A -',a ',C). r3c X 33 i F Signature: Date j�0;3 William Christian Date Ricky Schroeder Date Page 3 of 3 REPORT BY SHERIFF I certify that to the best of my knowledge, the applicants named above have not been convicted within the last five years for any felony or violation of State law or municipal ordinance relating to the sale of liquor, except as follows: 1 � Signature Sh � County '� — Date If you have any questions concerning these recommendations or require additional information, please feel free to contact me. CITY OF OTSEGO 8899 NASHUA AVENUE NE OTSEGO, MN 55330 In order to comply with State and Federal regulations, the City of Otsego is required to ask the information indicated below. This form will be filed separately from your application and will be used only for record keeping purposes. AUTHORIZATION AND RELEASE FOR BUSINESS OWNER(S) AND IVIA,NAGER(S) The undersigned, having filed an application with the City of Otsego for a LIQUOR LICENSE, realizing that the City has need to investigate the background and history of the applicant in order to better evaluate his or her application for the above license, does hereby authorize and request every law enforcement official and every other person, firm, officer, corporation, association, organization or institution having control of any documents, records or other information pertaining to me to furnish the original or copies of any such documents, records and other information to the City or any of its representatives, and to permit said City or any of its representatives to inspect and make copies of any such documents, records and other information. I further authorize any such persons to answer any inquiries, questions, or interrogatories concerning the undersigned which may be submitted to them by the City or its authorized representative. I fully understand that the information so obtained by the City may be used by it in its evaluation of my application. I hereby release and exonerate any person who shall comply with the authorization and request made herein from any and all liability or every nature and kind growing out of and in any way pertaining to the furnishing or inspection of such documents, records and other information. Dated this A day of 11 , 20 D _3 Signdfure of Applicant PLEASE PRINT: First Name Middle Name Last Name / �;�9I 5'% . /t/,W- Home Address City State Zip Code Date of Birth Name of Organization Associated With HUK-�I-m110u os ,3 J,,�IPCfl CTTY OF OTSEGO 8899 NASHUA AVENUE NE OTSEGO, M 55330 F,aE;)61� ilj 081' P.00�i00' In order to comply With Stntc and Federal regukatloas, the Clry of Otlego Is requlrcd to ask dle information indicatad below. T131a form vvM be flied separately from your app�cntioa and vri11 be uved Aaky for record keeping purposcs. Al, Jjj0RIZATI0N SND RELEASE FOR BUSZfESS OWLW W4S) A - ND XA-NACER(S) The undctsig=ed, having fired ac a licadun with rhat the Coy bas need ro invrvtigit P tLa b. _ ttze Clry of Chsego tn; a LIOUOR LI , SL caliiiaq his at her �k ound and hi3tory o the,, plicae:In oalcr cc bcrtcr ev�te egplicatioa for the above 1ic�e, does bmeby ArIrheri2r and regUegt evc- lak cnfi�i 21Wtc of cial and every other person, firtu. oEBCcr, corporation, Asst ciat:oa, �gaai. coon err insA, cn u bovine control of any dacum=ts, «con's ur utber iafbr=rion peru+ining to me to fi:rrisE3 the o ib:aal or ;epics of Said City b�crco. s aixl uthcr mfotmation to thr. t-ity or nay of i':, r-_prcacncati.cs, n,u± to Pc�ilt infarmat;oa I nptvscn4livcs m inspect and makr copies of any such docummcs, tr-ocy and other 'urtb� aa-, otilo uny Stich persons to Answer AAY inquiries, qucsdons, oryiuter ogatoties tmdcrsig=d which maY be submitted rn them by the Ci - f or iv authorized rpce rnrative. I r:ndestand th.r rhe iafL)—iL ion so ob:aiaed by ehe [::iry w jy ba u ed by it in its eyslu;�ticn of tnv eppli: atioa . I hereby release and cxOnctatc nuy person who lb -,111 mmr ly with the autho;i :Ian and rcqucst Luadc 1Lzei[t iron any and 4 liabiliry, of every natnre and kind Emunn8 out of and in any way pc,-UL+ut. hunrni�s or !=Pection ofsucb dueuol records and nrhrr iatonr4tioa as the Fated tkus a�day of M.ar`� . Z!],Q�. Coo Signitlure of Applicant PLEatiI+; pRrVT; ruatName Xddletlomc Last mcau 245-1; ``4L S� $orale Addrecc ca l7 . s to to Zip Cot c Date of Birth Name of Otg nl7atioa Aaraclared With H,AK-2a-2HiI'HN) 08,33 I,aYDCOR CITY OF OTSEGO 3899 NASMT k AVEYLrk: N -E UTSE GO, NIN 55.330 I;F��;!61_I i1� 081. P.00ii00 urn nrdPr to comply with StAtc and Fedema regulations, the C:itp of Otsego is required to earl the sed n lyfo tecard k below. Thla fOL'tu will be filed sepnrately from your application and wry be used only far eecard kecpbtg purposes. ATPl1ipRiun0N .1.YD RFUASE FOR BUSINESS OWN R(S) XND -1-LS-vAGL• lZ(S) T"e uadcn'Ped, h.* Ecd as applirtlion with the Or, of Qtse o for a that the City hag need to invc.s►i=c tLc back Bund aad Kien o. B S�OUOR C [N teulizitiQ his or her a rY ` tLe upplicanr is o dar to beta evaluate pplicatioa for the above 11C. -Me, docs hen-hy attth.erize and requmt cvc law ot3iaal aad avey other person, firm, ofcet. corporarinn, 's'ec='t r7 euiore=e�t control of any '�oa1mcat3, rco:� ur crhe', Inia:aati�n ,�rta�nt °II' orgcuizatioa or ir�stitulion 2><vin; any such do f g o me to Su. i9h � ori9ival cr coples of 24d C' ��' records elnl uther ='formation to the Cary or any of im rcp-acvtaavca, tD pet�tit uy, or any of its reprscnLzrivcs to IMSPect and mace copies of say each doer .tccv ieuu and ocher =-formatio' I furthc authurice un coacerni ig % e undcrsi�cd which ma b sub ^Heti to then b the ay ineuinea, qucstioas, or i :tertpI:todes S:Ily =der'tand that rho u,{;�uricn obtnincd F, Y Ciry or its eut:;ori=d rcpresellGtdvc. I VPucadoa y the CGry may be used by it is iu evalusdon of my 1hmby eleauc mad cxcttcratc aoy pMp¢ who shall comply with the author=; 0_ and rcyuest made hct;it and all liahU4 or cvcay td'imm and kine! growing ou: of aad is any war pLrz,. a o to dte or iaspectioa of such lucumetttS, records and other `crest Of 1' thJs —day of . 20 - GSfgn�ture of Applicant ---'-- PLEASh pRI�i7: First Nam e 1VIlddleNII uau Last Name II Home Addrect Cel Q� s (o ZIP Cute , Date of Hirth ^ (p 6 Nxme of Oroanirttion Aasoclated Wltlt CITY OF TSEGO ON THE GREAT RIVER ROAD 8899 Nashua Avenue N.E. • Otsego, MN 55330 (763) 441-4414 9 Fax: (763) 441-8823 E-mail: cityhall@ci.otsego.mn.us APPLICATION FOR LICENSE INVOLVING PRIVATE OR CONFINDENTIAL INFORMATION (Tennessen Waming) PLEASE READ, SIGN AND RETURN WITH YOUR APPLICATION In connection with your request for a license, the City of Otsego has asked that you provide information about yourself, which may be classified as private, confidential, nonpublic, or protected nonpublic under the Minnesota Government Date Practices Act. Accordingly, the City is required to inform you of the following. 1. The purpose and intended use of the information requested is to determine if you are eligible for a license from the City of Otsego. 2. You are not legally obligated to supply the requested information. could disclose information that could cause your application to be denied. 3. The known consequence of supplying the requested information is that the information or further investigation 4. The known consequence of refusing to supply the requested information is that your request for a license cannot be processed. 5. A criminal conviction will not necessarily bar you from obtaining a license with the City. However, failure to reveal the requested information will be used as grounds for the denial of the application. 6. Other governmental agencies necessary to process your application are authorized by law to receive the information provided. 7. The City is required by law to furnish some of the information to the Minnesota Department of Revenue and other government agencies as provided by law. The undersigned, by signing this notice, acknowledges that he/she has read and understood the contents of this notice and has received a copy of this notice. 1-3Z03 Date I Si 6 ature of Applicant NaH-��-1UUi(NUV H.it L„'WOB i F1a1; J 61 Z 311 X811 P. 00?i Wl Clay Olt B ,\ 1,1 TSEGO 8599 tis h to Rvcnue N.L. - Olsc u, MN .i533C ON THE GREATRIVFR ROAD (763)4-11-4414 •Fax: (763) 441_8823 E -Mail: ciLylt�urci.oG;e2n.�n.y AaPLICA'mN Boa LICCY;; GWOLYIlvv?cZivATE �R cox > 4 nvrC;LV rlolr lTallc � w„�� PIZ' SE REArl, SIGN Aj M RETTM. ,,�T113 YQUR SLP?L.1CATfc.1 v Ie 00—etion witL your request for a lie=;r, the City cf Otsego tas asked deal u❑ p mhic}1 may be clnsti -d As privutc, cor.milm isl. nonpu'^lic, ar protected nongub!ie uuJce itlfntttmAtloa-cm Cinvn+tcrnt Detc pi'Ir ick AcG fiord ngly,'�e City is re�11L-ed Co inform ynn Cftha folio ving 1• Theand iatrncipA ,tsa a. -the inioctna cry of Otsego, don ecq.estt�i is to dct=fnc if you a,+ eligibly fo a license p=orn the ucllu' .L Yntt arc vix legally obligntcd to Supply llie:.q le9;Cd infornatinn. 3• Tllc known consequence of supplying ;be-'9ucatcd in!C'l'lnliuq is tat Lilo irtnrmntion or furtber invmt tiou eeuld di3eosc iuCurmz1rioC that Could ,muse your applicidon to be dcrdcd 4. the ICttALLM contcguqnve of refusing W auPply the ttQL:Md intrnrngtion is :hit yola request Sac alienee C=ot be p:t;ct:ssad. S. A muses coavictivu will not mccssati ly haryou from obtaining a liecnee w"Ll' d e CiN• however. teitiu c :u mwml the m]�csted blZtledoa ,r{ll be used us =Unds for the denial of I•he application. 6. vidtec QOVgt1R1t:t1L11 eganries neeeg6y-y to Proctae your aPyl' 601l provided. Ste Euthorizet by law to receive the infot;nadoll 7. The C:i;y is wired by law to fullisll sum-- of the infumation to the Tvlinoesoty Department of Rwrntt' and othe KovctStl= agetcf'c gs pmvid:d by law. The ttndcrslP.ctcd, by slgnine this notiee, 2ckAowlcdgcy t contents a hat ltr►lp has recd ehd eratood the Of this uulItx and has received a CePY of rlu/s�tie Nil; / ' Simnturc of ALjdlic3nr X811 P.001;pp� t:ITY OF �TSEG® W.19 Nes: ua Avenue N.E. - LROtrcgo, MI 553.;11 ON TI•ilr GRE9T RIVER ROAD F": 441-4,11,1• Fax: (763) 441-8823 E ->✓t. il: cityhall(BcLoLc� APPLIL'A 1?Oh ;0R LIC-ZNI Se LN v'0LYWC ?R1VA E C1R CONI. rNnENTLkL L\TCp_ fAi ION (TmiaMem waning) PL'ASE READ. SIGN AN 1.1 RL-TL'R..V WTI•l-I YOUR APPCICA7TON IM :onnec6on with yoar;eyumt for a llconSc. ti:e [ ity r f Qtu o Fee asked that which may be da=ciEed as private, cutuidrntial non � & You provide ;nfb�tion sboutyn,r�lf, r%1t!e P:,lctic- Ac!, eirG pu,.lic, or prq-ned noupubiio _oder the ;1Quyisutn GCv, oruu>siy, the Ciry is iegniitd to irform YOU Cf the tol lnu,IDd_ 'tn .enc Th-" pu,pus; ttnd Intaldcd City of Ov.bo• Use of thr information requeoted is to detnr� a if you:1— eligible tiv a license from ne C 2. You arc nor lcyally ob7jipmd :o supply the : nluQlcd inflli':natiOC 3• The }:7uwtt WuCgLcncc of SUpnfyinE ;5e tquested itl�trtnation is tl,ul the fIl:!otTttarian or fi,rhr, invet�[ion Could d�laaC igfotrttatiut, thnt CCUid=auscycnr ap; Ifa�rion-a be denied. p 4. The iezoum enn<cquene_ of"fueing to supPly dtc ,cyumxd Informatidn iv your Ye tequact for a license wu,ut to prx�aaL 5 A cr,,aidnal conviction will iwt r,ccrasadly bar YOU from nhtnining a license with the nry. Huwavc , tupure to rcrcxI tate roqucsrni ;uru�don will be wcd ss grouuds fur the denial of the aprlication, 6. Cthcr provided.6uvcrnrt7Cnta1 aBcncis nesc"ry to prate yaLrr application ars aurhorL-Z� by la',v to rccrtivr. the infamtt:tion 7. The City tq reTtirrd by law Co fwm ah .some of thu ittfurmarlon to he Ylinnreso-s 8ovvumrnL 5gencics as pmvided by low. man: of Revrnuo rid uther The andcrsigned, by siXtting chis nodee, ocltaowledges that he/she hu read and understood the �onteats of this notice otic] ha3 received a copy of this notice. 2 Z( p 3 D9te - Sisnatitrc of Applicant UR -24-200.8 (BION) 08 : il I'�NEOR 21-V-AR-2UU3-H! 10:36 AM ASSOCIATED AGEWS Mir -29- Poll 1:64PU iFa�,7612 31� 081 F.006i007 FAX 90,783 519 2299 No•555� R. 3 ProHcst USA Inc. 4600 Park filen Read, SWW 410 MlRmmop,orr% MN 35415 Fez X062) -0973 ��Qu0r 1.iabiJity Quote - Proposed Insured: MOM Liquor warshouce 80n Qu"Avanue NE OWN% AEN 333311 Toren: Cly; L m1hr: Rab; RbcePpls: Premi Vtr1: APr911, 2003 fh�ugh Ofi�ale 3001�OQ/300/30itr30N3a0 0.83 $1,000,000 April 1, lou Minimum PtWWum; AIAUU Sa60 TOM Premium Duo: $8,300 Conditions and Llmiikgonc is a 20% mintmurn earned Pnanitrm nq all potiaica "polisy le sant Intist tarry Ganem] Cove -we forthe full tarn of the Liquor t.labimy pollry, Potlavniltsr, on an agency b3l Dcuta. Terms: 20% down to bind and balsnca within 30 "fPrvmlum financing is drslr�ed Ihnaugh Ammw- n>lf� An Country FirlAI, FJAN wntact days. TheresA Cartur at (9502)1324.8974, Will need before olamine: Mocl runt 12 maWis ST_1'E _� illiAVE 51PARs tfARD,SOaV LOGS RI Ng F - CamplcEed and sign -d avvllcsoon. R� includes Saver tralning ctadtt agent rnL pt O&z n Carti{�e+ilon of compllogce no later than 30 d alter the affacSvc dots, Rate lndudOc servar &sluing Credit Final rate and Premlum eubleet tr, rtc#t of signed appllcatiorL Swvsr reGWvl jjg a�d L edit not 0ivon. Approve rouraas must bQ m0mm every 2 ymn Ih ordarto Codnue ' }°d I6 0 r8newa�l yvala CacWte`nmw d on ime ricr 10 pl�t�on dnt ng ; to prav�t cancell�Urn ar terminanon of e_'m , . an4 SPeeify any c hOnges that haus tin plain n the par�on alc4�ro Iawlrenvial. rAcei0le hmranea Carrier. Amwrf4n Count, In3Urd"W GamRany Aaent%penW QUOTE VALID FOR so DA" Authoftm ey. Aesact2toa Agents .2800 FraaWay blvd, Brooklyn Cantor, WIN asm TnArem M. Comer Date: 3r20120D3 mHtt-L4-LUU (�l1,YJ u� is ►JVI►CUK►;F0;)61Z 31 081? P.00?'007 ST MN ALC GAME ENF 6512975259 03!20 '03 13*12 NO.935 01/01 DEPARTMENT OF PUBLIC SAFE=TY �� Aloohor g, Gamblirig cnlorwn m Item. NUMBERda Cedar st,%,t; 122 SL Raul. WN ssiQ-1-5133 PhoneE IMM -0799 TCG a01282.5jtj uaa Cny) APPUCAMN FOR RETAILER'S (BUYER) CARD FOR LJOUOR OR WAVE E.EASE RT:T�'RN TTIIS APPT I 'A'fTC)�i W X0.00 FFA '6aW4 ANTHORrry 1crTr 99 GGLATTJ TYPE COCE cuAwsrR aur>,>1e Dano cVpE3 iDen, no. 1p. nT NAI1oE EF (A9 9MC" ON L1LEV5 Q Ff L L eu51nE55 `ME (UEA) T� Ski r: L IM Cs►^'l aU0rN893 AOOF7ES; 1— cm QrnrE aP coo: �EwwaaacEa siGvatiac rowoa �� Scc reverie slde for Instr LtiOrl5 NJ3W APPLICANTS - PL.EASE COMP EM BO'i MM 3 LINES ON THL FRONT OF THIS FORIq PMgEWALS - PLEASE MARE &NY CORRECTIONS ON FRONT OF I -EUS FOR_,tiI PLEAS'- SUBMIT SEZORE CURM7 EacP AIMN DATE TO AY011)II4-MRRUPTION OF LIQUOR DELIVERIES MAID CM CX PAYABLE TO' AIS N n —r- —09b Customgr's Order No. Phone No. P. Sold To .` CITY OF OTSEGO 1 8W NE NASHUA AYE. City EJC RVER MN 5330 (763) 441-4414 Customgr's Order No. Phone No. Date Sold To .` Address i 1 City Sold By Cash C.O.D. Charge On Acct. Description Price Mdse. Paid Out Ret'd. Am I i _j ' - All Bairns and returned goods MUST be accom0anleo by this bill � } �' e ti—co—ce�e�� le • eir m r -NUM Cour i & MacArthur TO Michael C. Couri= COURT & MACAR THUR Andrew J. MacArthur Robert T. Ruppe— David R. Wendorf 'Ava r wsa in irtrwa '•.1110 lkvmcd in Califw is April 28, 2003 Mr. Mike Larson 6434 Quale Avenue NE Otsego, MN 55330 Attorneys at Law 705 Central Avenue East PO Box 369 St Michael, MN53376-0369 (763) 497-1930 (763) 497-2599 (FA4 couriandmacarthur@pobax.com 4418823 P.02 Re: Notice of Zoning Ordinance Violation Pursuant to Section 20-11-1.B Dear Mr. Larson: Our Office acts as the City Attorney for the City of Otsego.. The purpose of this letter is to notify you that you are in violation of the City of Otsego's Zoning Ordinance. Your property located at 6434 Quale Avenue is located in a zoning district A-1, Agricultural Service Area. The City after a site inspection noted the following violations: 1. There was evidence of industrial activity on-going in the southern most detached accessory building. The A-1, Agricultural Service Area zoning district does not allow for industrial uses as a permitted, accessory, interim or conditional use. Based on the City's inspection, your property does not qualify for a home extended business by interim use permit within the A-1 District and would not meet the minimum conditions for such uses required by the Zoning Ordinance. 2. The existing outdoor storage of containers, equipment and materials not related to an allowed use within the A-1 District is a violation of Section 20-16-6.A of the Zoning Ordinance. 3. There is evidence of fill being placed on the property near the west property line abutting Quale Avenue. Section 20-23-1 of the Zoning Ordinance requires a permit for adding landfill in excess 50 cubic yards to any property. The City has no record of such a permit being requested or issued. 4. There is a temporary sign located along the east line of the subject site advertising commercial service business. Business identification signs are not permitted within agricultural zoning districts pursuant to Section 20-37-5.A of the Zoning Ordinance and the sign may be considered advertising of a use not Ccuri & MacArthur TO 4418823 P.03 April 28, 2003 Page 2 related to the allowed use of the property, which is prohibited by Section 20- 37-3.B.1 of the Zoning Ordinance. 5. The passenger van parked along the Trunk Highway 101 frontage violates the requirements of Section 20-16-23.A.3 of the Zoning Ordinance regarding the location of personal vehicles for sale in an agricultural zoning district by encroaching within the 65 foot setback required from the east property line of the subject site. The estimated 32 square foot sign advertising the vehicle for sale also violates the maximum two square foot area allowed by Section 20-16- 2.A of the Zoning Ordinance. 6. There is a recreational vehicle trailer to the northeast of the detached accessory buildings that appears established for permanent occupation. Accessory dwellings are not an allowed use within the A-1 District and use of such equipment as a dwelling unit is prohibited pursuant to Section 20-16-2.Aof the Zoning Ordinance. City staff has observed the above described conditions currently existing on your property. The conditions on your property have been a long term problem continuing in nature. You are required to take the following actions within 30 days of the date of this notice: 1. Cease all industrial and commercial activities on the property. 2. Remove the existing outdoor storage of containers, equipment and materials not related to residential use of the property. 3. Apply for a landfill permit from the City including payment of any fees and timely comply with the permit requirements. 4. Remove the temporary sign located along the east line of the subject site advertising a commercial service business. 5. Move the van to a location where it meets the 65 foot setback required from the east property line. . 6. Remove the estimated 32 square foot sign advertising the vehicle for sale. 7. Cease and desist all use of the recreational vehicle trailer to the northeast of the detached accessory buildings as a dwelling. YJ+-C6-GL�11,,,5 12:' 22HM FROM Cour i & MacArthur TO 4418823 P.04 April 28, 2003 Page 2 Failure to comply with the requirements of this notice may result in legal action by the City to force you to bring your property into compliance with the Zoning Ordinance. If the City is forced to resort to legal action, it will seek reimbursement for all costs and disbursements. In addition to the civil remedies available to the City, each violation of the Zoning Ordinance is a criminal misdemeanor punishable by up to a $700.00 fine and/or 90 days in jail. Sincerely, A4 w J. acArthur Couri & MacArthur ITEM 10_A_ MEMO Date: April 24, 2003 To: Mayor & Council From: City Administrator Mike Robertson Re: Internal Promotion Recommendations Deputy Clerk Carol Olson has given her retirement notice. Her last day will be Thursday, August 28, 2003. My recommendations on how to address her retirement are as follows. Promote Karee Rowell from Secretary to Deputy Clerk, effective upon Carol Olson's retirement. Promote Sandy Lindenfelser from Receptionist to Secretary, effective upon Carol Olson's retirement. I will prepare a salary schedule for these positions for Council approval. It will be based on the same process we used in 2000 when Elaine Beatty retired and Judy Hudson and Carol Olson were promoted to their current positions. Each of the people promoted will be put on a two year track to be brought up to their predecessor's salary, assuming good job performance. In addition, I would like Council approval for Sandy Lindenfelser to go from part-time to full-time hours effective July 1, 2003. This was planned for in the 2003 budget. Going full-time is necessary both due to the increasing work load and to provide additional time for Karee to be trained in all aspects of Carol's job before she leaves, as well as for Karee to train Sandy. I would not plan to replace Sandy's part-time position immediately, but would like to wait to advertise in early winter. We have found we get a lot more applicants for jobs in the winter as people look for an alternative to commuting to the Twin Cities in a snowstorm. ITEM y0_g_ FINANCE PLAN SUMMARY For City of Otsego, Minnesota $5,350,000 General Obligation Improvement Bonds of 2003 Presented by: NORTHLANDSECURITIES 45 South 7th Street Suite 2500 Minneapolis, MN 55402 612-851-5900 800-851-2920 City of Otsego, Minnesota $5,350,000 General Obligation Improvement Bonds of 2003 Financing Overview: Proceeds from this bond issue will be used to fund various public infrastructure improvements related to the City's 2003 Street Improvements Project. The total cost of the project is approximately $5,240,000 and includes 85`h Street Extension, Waterfront Improvements, 85' Street Reconstruction and Page Avenue improvements. We understand the City will contribute approximately $101,691 of available capital improvement fund dollars to initially cover the capitalized interest required resulting in a net financing requirement of $5,240,000 after accounting for financing costs. A detailed illustration of the sources and uses of funds is on Page 1 of Exhibit A. The estimated debt service schedule is shown on Page 2 of Exhibit A. The total principal and interest structure assumes an average coupon of 3.25% and is structured around the projected revenue streams to repay the debt service. The City expects to fund debt service from a combination of special assessments against benefited properties ($3,324,500 total) and property tax collections. We understand the detailed terms of the special assessments to be as follows: Page 3 of Exhibit A details the estimated cash flow of the debt service fund. The special assessment revenue stream assumes the City will file approximately $3,324,500 of assessments this summer and fall requiring level payment according to the various terms outlined above. Capitalized interest in the estimated amount of $103,738 is required to cover the first interest payment due on February 1, 2004 since assessment and tax revenue will not be available until early July. The tax levy component will cover the balance of revenues required to meet debt service. The estimated average annual tax levy will be $225,000. Summary of Recommended Terms: 1. Type of Bond Sale Public Offering — Competitive Bids Page NORTHLAND SECURITIES 85ih Street Ext. Waterfront Imp. 85"' Street Recon. Page Ave. Amount Assessed First Collection $385,000 (100%) 2004 $2,705,000 (100%) 2004 $92,500 (5.0%) 2004 $52,000 (10.0%) 2004 Term Interest Rate (NIC + 1.50%) Repayment Structure 5 Years 4.50% Level Pmt. 6 Years 4.70% Level Pmt. 10 Years 5.30% Level Pmt. 10 Years 5.30% Level Pmt. Page 3 of Exhibit A details the estimated cash flow of the debt service fund. The special assessment revenue stream assumes the City will file approximately $3,324,500 of assessments this summer and fall requiring level payment according to the various terms outlined above. Capitalized interest in the estimated amount of $103,738 is required to cover the first interest payment due on February 1, 2004 since assessment and tax revenue will not be available until early July. The tax levy component will cover the balance of revenues required to meet debt service. The estimated average annual tax levy will be $225,000. Summary of Recommended Terms: 1. Type of Bond Sale Public Offering — Competitive Bids Page NORTHLAND SECURITIES 2. Bids Received Tuesday May 27, 2003 at 11:30 a.m. 3. Council Consideration Tuesday May 27, 2003 at 6:30 p.m. 4. Statutory Authority The Bonds are being issued pursuant to Minnesota Statutes 429 and 475. 5. Repayment Term The Bonds will mature annually each February 1, 2005 - 2014. Interest on the Bonds will be payable on February 1, 2004 and semiannually thereafter on each August 1 and February 1. 6. Security General Obligation Pledge of the City. The City expects to fund debt service from a combination of special assessments filed for first collection in 2004 and property tax collections. 7. Prepayment Option The Bonds maturing February 1, 2012 — 2014 will be subject to prepayment on February 1, 2011 at a price of par plus accrued interest. 8. Tax Status In the opinion of the City's Bond Counsel (Briggs and Morgan) to be delivered at closing, interest on the Bonds is excluded from gross income for state of Minnesota and federal income tax purposes and is not an item of tax preference for purposes of the federal minimum tax imposed on individuals and corporations. 9. Credit Enhancement We believe a credit rating may be cost beneficial. We will evaluate the cost effectiveness of a credit rating based on a preliminary review by Moody's Investors Service. In addition, bidding terms will allow for municipal bond insurance to be purchased by underwriters. We will forward the appropriate information to the four major municipal bond insurance companies for consideration. Related Considerations: Not Bank Qualified - We understand the City expects to issue an additional $10.OM - $12.OM in general obligation water and sewer revenue bonds later this year. Therefore, because total tax- exempt debt issued by the City in calendar year 2003 will exceed $10.OM, the bonds will not be designated as "bank qualified" obligations pursuant to Federal Tax Law. The impact of this designation may result in slightly higher interest rates since banking institutions will not be allowed to purchase the bonds. We have adjusted the estimated interest rates accordingly. Page NORTHLAND SECURITIES • Arbitrage Compliance — o Project / Construction Fund — All tax exempt issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption that the City may qualify for is the Two Year Construction Expenditure Exemption. In general, 75% of the proceeds must be for construction and the "available construction proceeds" must be spent as follows: 10% with in 6 months, 45% within 12 months, 75% within 18 months and 95% within 24 months. o Debt Service Fund — The City must maintain a bona fide debt service fund for the bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Bond Resolution explains the requirements in greater detail. We are also available to assist the City in meeting these requirements. Book Entry - The Bonds will be global book entry with a bank designated as the paying agent. As "paperless" bonds, you will avoid the cots of bond printing and annual registrar charges. The Paying Agent will invoice you for the interest semiannually and on an annual basis for the principal coming due. You will be charged only for paying agent/transfer agent services provided by the bank. This cost of services has been capitalized into the bond issue. Continuing Disclosure - Because this issue is greater than $1,000,000, it is subject to the Securities and Exchange Commission's continuing disclosure requirements. Northland Securities is prepared to assist the City in this capacity. EXHIBIT A Page NORTHLAND SECURITIES Preliminar. $5,350,000.00 City of Otsego, Minnesota General Obligation Improvement Bonds of 2003 TOTAL ISSUE SOURCES AND USES I Dated 06/01/2003 Delivered 06/01/2003 I SOURCES OF FUNDS 85th Street Extensi Waterfront Improvem 85th Street Reconst Page Avenue Issue Summary Par Amount of Bonds ........................................................ $380,000.00 $2,660,000.00 $1,810,000.00 $500,000.00 $5,350,000.00 Planned Issuer Equity contribution ..................................... 6,405.00 44,636.00 39,355.00 11,295.00 101,691.00 TOTAL SOURCES.............................................................. USES OF FUNDS Total Underwriter's Discount (1.350%) ............................. Costs of Issuance............................................................. Deposit to Capitalized Interest (CIF) Fund .......................... Deposit to Project Construction Fund ................................. RoundingAmount............................................................. TOTALUSES.................................................................... $386,405.00 $2,704,636.00 $1,849,355.00 $511,295.00 $5,451,691.00 5,130.00 35,910.00 24,435.00 6,750.00 72,225.00 2,678.12 18,503.26 12,590.57 3,478.05 37,250.00 6,405.00 49,068.33 38,548.33 9,716.67 103,738.33 375,000.00 2,600,000.00 1,775,000.00 490,000.00 5,240,000.00 (2,808.12) 1,154.41 (1,218.90) 1,350.28 (1,522.33) $386,405.00 $2,704,636.00 $1,849,355.00 $511,295.00 $5,451,691.00 Northland Securities File = OTSEGO, SF -2003 Improvement Bonds - Set Sale -Issue Summary Public Finance Group 411712003 2:22 PM Page 1 Prnlin.n YIELD STATISTICS $5,350,000.00 $26,896.67 AverageLife..................................................................................................................... 5.027 Years AverageCoupon............................................................................................................... City of Otsego, Minnesota NetInterest Cost (NIC).................................................................................................... 3.5262207% TrueInterest Cost (TIC)................................................................................................... 3.5296127% General Obligation Improvement Bonds of 2003 AllInclusive Cost (AIC)..................................................................................................... 3.6859389% IRS FORM 8038 DEBT SERVICE SCHEDULE NetInterest Cost.............................................................................................................. 3.2576930% Date Principal Coupon Interest Total P+I FISCAL TOTAL 6/01/2003 411712003 2 22 PM - - 2/01/2004 103,738.33 103,738.33 103,738.33 8/01/2004 - - 77,803.75 71,803.75 - 2/01/2005 715,000.00 1.800% 77,803.75 792,803.75 870,607.50 8/01/2005 71,368.75 71,368.75 2/01/2006 730,000.00 2.150% 71,368.75 801,368.75 872,737.50 8/01/2006 - 63,521.25 63,521.25 - 2/01/2007 745,000.00 2.600% 63,521.25 808,521.25 872,042.50 8/01/2007 - 53,836.25 53,836.25 - 2/01/2008 760,000.00 2.900% 53,836.25 813,836.25 867,672.50 8/01/2008 - 42,816.25 42,816.25 2/01/2009 785,000.00 3.150% 42,816.25 827,816.25 870,632.50 8/01/2009 30,452.50 30,452.50 - 2/01/2010 725,000.00 3.500% 30,452.50 755,452.50 785,905.00 8/01/2010 17,765.00 17,765.00 - 2/01/2011 210,000.00 3.629% 17,765.00 227,765.00 245,530.00 8/01/2011 - 13,955.00 13,955.00 - 2/01/2012 220,000.00 3.900% 13,955.00 233,955.00 247,910.00 8/01/2012 - 9,665.00 9,665.00 - 2/01/2013 225,000.00 4.100% 9,665.00 234,665.00 244,330.00 8/01/2013 - 5,052.50 5,052.50 - 2/01/2014 235,000.00 4.300% 5,052.50 240,052.50 245,105.00 Total 5,350,000.00 876,210.83 6,226,210.83 YIELD STATISTICS BondYear Dollars............................................................................................................. $26,896.67 AverageLife..................................................................................................................... 5.027 Years AverageCoupon............................................................................................................... 3.2576930% NetInterest Cost (NIC).................................................................................................... 3.5262207% TrueInterest Cost (TIC)................................................................................................... 3.5296127% BondYield for Arbitrage Purposes..................................................................................... 3.2308274% AllInclusive Cost (AIC)..................................................................................................... 3.6859389% IRS FORM 8038 NetInterest Cost.............................................................................................................. 3.2576930% WeightedAverage Maturity ............................................................................................... 5.027 Years Northland Secunties File = OTSEGO.SF-2003 Imptovement Bonds - Set Sale -Issue Summary Public Finance Group 411712003 2 22 PM Page 2 Prnliminary wunnranu Oecunues File = OTSEGO.SF-2003 Improvement Bonds - Set Sale -Issue Summary Public Finance Group 4/1712003 2:22 PM Page 3 $5,3501000.00 City of Otsego, Minnesota General Obligation Improvement Bonds of 2003 REVENUE VS D/S Assessment Capitalized Tax Levy Taut Levy Cyde Date Revenue Interest Total Revenues Scheduled P+I Required Levy @ 105% : Certifled/Collect 2/01/2004 - 103,738.33 103,738.33 103,738.33 - 2/01/2005 646,362.21 - 646,362.21 870,607.50 224,245.29 235,457.55 20Q3/2004 2/01/2006 646,361.28 - 646,361.28 872,737.50 226,376.22 ' ; 237,695.03 " 2004/2005,' 2/01/2007 646,362.42 - 646,362.42 872,042.50 225,680.08 1" 236,964.08 . 2005/2006, 2/01/2008 646,361.66 - 646,361.66 867,672.50 221,310.84 ` "." 232,376.38 ," 2006/2007 .' 2/01/2009 646,361.00 - 646,361.00 870,632.50 224,271.50 ' : 235,485.08 2007/2008 '. 2/01/2010 557,087.00 - 557,087.00 785,905.00 228,818.00 240,258.90 2008/2009 2/01/2011 19,384.88 - 19,384.88 245,530.00 226,145.12 i;" 237,452.38 2009/2010 2/01/2012 19,385.24 19,385.24 247,910.00 228,524.76 239,951:00. ' ; 2010/2011 " 2/01/2013 19,384.26 19,384.26 244,330.00 224,945.74 236,193.03,""-"-;12011/2012.I 2/01/2014 19,385.72 - 19,385.72 245,105.00 225,719.28 237,005.24 r 2012/2013„ Total 3,866,435.67 103,738.33 3,970,174.00 6,226,210.83 2,256,036.83 wunnranu Oecunues File = OTSEGO.SF-2003 Improvement Bonds - Set Sale -Issue Summary Public Finance Group 4/1712003 2:22 PM Page 3 ITEM 10 -B - NO RTHLAND JOSE C URI 'CIES EXTERNAL MEMORANDUM DATE: April 23, 2003 TO: Mike Robertson, City Administrator Gary Groen, Finance Officer City of Otsego FROM: Paul Donna, Vice President, Partner Northland Securities Public Finance RE: Water and Sewer System Improvements Financing Preliminary Bond Structure - Attached please find a preliminary bond financing structure in the amount of $11,345,000 for a General Obligation Water and Sewer Revenue bond which would finance the East and West Wastewater Treatment Plant improvements and the West Water and Sewer System improvements totaling $11,100,000. The financing is structured over a twenty-year level amortization with first interest due December 1, 2003. The estimated annual principal and interest payment in this analysis is approximately $882,000. The estimated average coupon of 4.68% assumes the bonds are not bank qualified and are not rated or insured. However, we believe credit enhancement would be cost effective and will pursue it on the City's behalf. If the bonds can be rated and/or insured, the cost benefit will be reflected in a lower overall interest cost. Method of Sale — This bond issue is very interest rate sensitive because of the relatively large amount of bonds being issued and the twenty-year term. A difference in the average interest rate of just .10% (a 4.78% instead of a 4.68%) represents approximately $140,000 in total interest cost. Because of this market sensitivity the City may consider issuing the bonds via a direct underwriting with Northland Securities rather than a solicitation of proposals. The direct negotiation process involves a number of techniques during the pricing phase that help mitigate interest rate risk. Most notably is the City's ability to remain flexible with market conditions and price the bonds when it is advantageous to the City. The direct underwriting process involves choosing a window of time to price the bonds, typically a two — three week period and then engage in pre -selling activities when the market is to the City's benefit and thereby avoid potential detrimental market changes. Contrast this with the solicitation process that relies on a given date in time to receive proposals, which subjects the City to the whims of the market and does not provide for pre -selling activities. Perhaps the single largest disadvantage to the direct negotiation process is the appearance of a closed and non-competitive process. However, the Minnesota municipal bond market has addressed this concern through 1) the requirement of a third party "pricing opinion" and 2) the efficiencies of the market because of easy access to information. Market information is easily accessible by the City which enable you to view other like bond issues for comparison. In fact, these pricing comparisons are a part of the overall sale process presented to the Council and staff. Northland Securities, Inc. 45 South 71h Street, Suite 2500, Minneapolis, MN 55402 roll r ee 800-851-2920 min 612-851-5900 rrx 612-851-5987 www.northlandsecurities.com Member NASD and SIPC To aid in the explanation of the various advantages and disadvantages I have attached information from the Government Finance Officers Association for your review. In summary, it is our fiduciary responsibility to provide the City with options so that you have the most efficient access to capital. Given the size and term of the issue we believe the direct underwriting process is the most efficient method of sale that should be used for this bond issue. It mitigates any "risk premiums" built into pricing proposals to compensate for market uncertainty and affords the City the ability to respond to market factors including supply and demand rather than accept the market forces. Please call me if you have any questions or would like modifications made to the analysis. YIELD STATISTICS BondYear Dollars.......................................................................................... $139,942.50 AverageLife.................................................................................................. 12.335 Years AverageCoupon............................................................................................ 4.6829064% NetInterest Cost (NIC).................................................................................. 4.8207237% TrueInterest Cost (TIC)................................................................................. 4.8103496% Bond Yield for Arbitrage Purposes................................................................... 4.6191100% AllInclusive Cost (AIC)................................................................................... 4.8608642% IRS FORM 8038 NetInterest Cost........................................................................................... 4.6829064% Weighted Average Maturity ............................................................................. 12.335 Years Northland Securities File = OTSEGO, SF -G. O. Sewer Revenue Bonds of 2003- SINGLE PURPOSE Public Finance Group 4/232003 5:01 PM Page 2 $11,345,000.00 City of Otsego, Minnesota General Obligation Sewer Revenue Bonds of 2003 (Current Rate Estimate - Non BQ /Not Rated) DEBT SERVICE SCHEDULE Date Pnncipal Coupon Interest Total P+I FISCAL TOTAL 6/01/2003 _ - 12/01/2003 241,019 241,019 241,019 6/01/2004 241,019 241,019 - 12/01/2004 400,000 1.800% 241,019 641,019 882,038 6/01/2005 - - 237,419 237,419 - 12/01/2005 410,000 2.150% 237,419 647,419 884,838 6/01/2006 - 233,011 233,011 - 12/01/2006 415,000 2.600% 233,011 648,011 881,023 6/01/2007 - 227,616 227,616 12/01/2007 430,000 2.900% 227,616 657,616 885,233 6/01/2008 221,381 221,381 - 12/01/2008 440,000 3.150% 221,381 661,381 882,763 6/01/2009 - 214,451 214,451 - 12/01/2009 455,000 3.500% 214,451 669,451 883,903 6/01/2010 206,489 206,489 12/01/2010 470,000 3.700% 206,489 676,489 882,978 6/01/2011 - 197,794 197,794 - 12/01/2011 485,000 3.900% 197,794 682,794 880,588 6/01/2012 - - 188,336 188,336 - 12/01/2012 505,000 4.100% 188,336 693,336 881,673 6/01/2013 - 177,984 177,984 - 12/01/2013 525,000 4.300% 177,984 702,984 880,968 6/01/2014 - - 166,696 166,696 - 12/01/2014 550,000 4.400% 166,696 716,696 883,393 6/01/2015 - 154,596 154,596 12/01/2015 575,000 4.500% 154,596 729,596 884,193 6/01/2016 - 141,659 141,659 - 12/01/2016 600,000 4.600% 141,659 741,659 883,318 6/01/2017 127,859 127,859 - 12/01/2017 625,000 4.700% 127,859 752,859 880,718 6/01/2018 - 113,171 113,171 12/01/2018 655,000 4.800% 113,171 768,171 881,343 6/01/2019 - - 97,451 97,451 - 12/01/2019 690,000 4.850% 97,451 787,451 884,903 6/01/2020 - - 80,719 80,719 12/01/2020 720,000 5.000% 80,719 800,719 881,438 6/01/2021 - - 62,719 62,719 - 12/01/2021 760,000 5.100% 62,719 822,719 885,438 6/01/2022 - - 43,339 43,339 - 12/01/2022 795,000 5.250% 43,339 838,339 881,678 6/01/2023 22,470 22,470 12/01/2023 840,000 5.350% 22,470 862,470 884,940 Total 11,345,000 - 6,553,376 17,898,376 - YIELD STATISTICS BondYear Dollars.......................................................................................... $139,942.50 AverageLife.................................................................................................. 12.335 Years AverageCoupon............................................................................................ 4.6829064% NetInterest Cost (NIC).................................................................................. 4.8207237% TrueInterest Cost (TIC)................................................................................. 4.8103496% Bond Yield for Arbitrage Purposes................................................................... 4.6191100% AllInclusive Cost (AIC)................................................................................... 4.8608642% IRS FORM 8038 NetInterest Cost........................................................................................... 4.6829064% Weighted Average Maturity ............................................................................. 12.335 Years Northland Securities File = OTSEGO, SF -G. O. Sewer Revenue Bonds of 2003- SINGLE PURPOSE Public Finance Group 4/232003 5:01 PM Page 2 $11,3451000.00 City of Otsego, Minnesota General Obligation Sewer Revenue Bonds of 2003 (Current Rate Estimate - Non B /Not Rated) SOURCES & USES Dated 06/01/2003 PrPliminary Delivered 06/01/2003 SOURCES OF FUNDS Par Amount of Bonds.................................................................... $11,345,000.00 TOTALSOURCES.......................................................................... $11,345,000.00 USES OF FUNDS Total Underwriter's Discount (1.700%) ......................................... 192,865.00 Costsof Issuance......................................................................... 50,150.00 Deposit to Project Construction Fund ............................................. 11,100,000.00 RoundingAmount......................................................................... 1,985.00 TOTALUSES................................................................................ $11,345,000.00 Northland Securities File = OTSEGO.SF-G.O. Sewer Revenue Bonds of 2003- SINGLE PURPOSE Public Finance Group 4/23/2003 5:01 PM Page 1 I . I '. . , I m Practitioners Guide TO Effectlee Debt Hatagement COMPETITIVE v. NEGOTIATED How to Choose the Method of Sale for Tax -Exempt Bonds INTRODUCTION One of the first decisions made by a state or local government in preparing to issue debt is the method of sale for its bonds. Bonds can be sold in one of three ways: through competitive bidding, negotiated sale, or private placement. The method of sale is an important factor in determining the overall cost of the financing, including both upfront issuance costs and debt service costs over the life of the bonds, and in ensuring public confidence in the sale process. Government entities must carefully evaluate which type of sale is likely to result in the lowest total financing costs for their jurisdictions while maintaining public trust. Most bonds are sold through either a competitive or negotiated method of sale. Relatively few issues are sold through private placement. Private placement is a method of sale by which the issuer sells bonds directly to a limited number of sophisticated investors without a public offering. In 1993, only about 1 percent of the total volume of tax-exempt securities, or 3 percent of the number of issues, was privately placed. Since most issuers choose either the competitive or negotiated method of sale, this report will focus on these two options. As measured by volume, the predominant method of sale for long- term, tax-exempt bonds in recent years has been negotiated sale. Eighty percent of the volume of long-term municipal bonds was sold using a negotiated sale in 1993. Focusing on general purpose issues, about 69 percent of the total volume of bonds, but only 53 percent of the number of issues, was sold by a negotiated sale. CHARACTERISTICS OF In a competitive method of sale, the issuer solicits bids from A COMPETITIVE underwriting firms to purchase its bonds, and sells bonds to the firm METHOD OF SALE or bond syndicate offering the lowest interest rate (or highest price) bid. With this method of sale, the issuer determines the size and other essential characteristics of the issue, prepares bond documents, obtains a rating, and completes all other necessary tasks for the issuance of the bonds prior to soliciting bids. A financial advisor and bond counsel are often employed to assist in these tasks. The issuer then publishes a Notice of Sale to advertise the sale of bonds. The Notice of Sale summarizes the terms and CHARACTERISTICS OF A NEGOTIATED METHOD OF SALE conditions of the offering, describes the bidding requirements, and identifies the date and time of the sale. Underwriters submit their bids at the specified time for bid opening. Each bid takes into account both the interest rate paid to investors and the amount of compensation to the underwriting firm for selling the bonds. Once bids are evaluated, the issuer awards the bonds to the firm submitting the lowest interest rate bid that meets all criteria specified in the Notice of Sale. The Notice of Sale will specify the method used to calculate the interest rate -- usually either a net interest cost (NIC) or a true interest cost (TIC) method. The NIC is the average interest rate on bonds, and is calculated using the following formula: NIC = Total Coupon Interest Payments + Discount (less Premium) Number of Bond Years The TIC method of calculation is preferred because it takes into account the time value of money. The TIC is the rate that, when used to discount total principal and interest payments over the life of the bonds, gives the amount of bond proceeds received by the issuer at the time of issuance. In some jurisdictions, competitive sales are required by law. Issuers should consult with bond counsel in order to assure themselves that they are complying with all state and local statutes and other legal provisions related to method of sale. A negotiated sale involves a different process. In this case, an underwriting firm is selected well in advance of the proposed sale date before the issuer has full knowledge of the terms of the purchase. In the weeks prior to the sale, the issuer and the underwriter engage in discussions regarding the amount of compensation which will be paid by the issuer to sell the bonds to investors, to provide advice to the issuer on the characteristics of the offering, and to cover other costs. A final purchase price, reflecting the amount of compensation to the underwriters and the coupon interest rates at which the bonds will be offered, is negotiated at the time designated for sale of the bonds. The issuer will usually select an underwriting firm (or firms) to take the lead role in marketing its bonds. This firm is known as the senior managing underwriter. The senior managing underwriter will often take an active role in sizing and structuring the issue, and preparing bond documents. The issuer may also decide to delegate these responsibilities to its financial advisor and bond counsel, leaving the senior managing underwriter to work on marketing the securities to potential investors. The senior managing underwriter is also responsible for managing the activities of the bond syndicate -- that is, the underwriting firms making up the team that sells the bonds. At the time bonds are to be sold, the underwriting syndicate meets to determine the interest rates at which various maturities will be offered. Upon approval by the issuer, the syndicate will approach investors to determine whether the bonds can be sold at these rates. Adjustments will be made as necessary until a final set of maturities and interest rates are reached reflecting the supply of and demand for bonds. The underwriter also proposes an amount of compensation, known as underwriter's discount or gross spread. This amount compensates the underwriter's sales force for selling the bonds and the public finance staff for structuring the transaction. It also includes expenses incurred by the underwriter on behalf of the issuer, and may include a "risk" component to compensate members of the syndicate for incurring the risk that bonds may not get placed with investors at the stated coupon interest rates. Once terms for the sale of the bonds have been reached, a bond purchase agreement is signed by the issuer, usually after approval by a legislative body. This generally occurs within one or two days of the sale date. ADVANTAGES AND Competitive sales offer a number of benefits to issuers of tax - DISADVANTAGES OF A exempt debt, and should be given strong consideration in deciding COMPETITIVE SALE which method of sale to use. There may, however, be circumstances in which these types of sales are not as advantageous relative to negotiated sales. The advantages and disadvantages of competitive bond sales are as follows: Advantages 1. Competitive sales provide some assurance that bonds have been sold at the lowest interest rates given market conditions. Competition provides an incentive for each underwriter to submit the most aggressive bid at which it expects to be able to successfully market bonds to investors. 2. The amount of compensation paid by issuers to underwriting firms for selling the bonds, or gross spread, has historically been lower for competitive sales relative to negotiated sales. While the average gross spread differential for competitive and negotiated sales has narrowed in recent years, underwriting spreads for competitive sales were still 5.81 per $1,000 bond less on average than for negotiated sales in 1993 based on data collected by the Securities Data Company. Part of this differential, of course, can be explained by the fact that negotiated transactions often have more complex structural or security features. 3. Competitive sales promote the appearance of an open, fair process. A growing concern of negotiated sales, whether real or apparent, is that underwriting firms may be awarded business to reward them for campaign contributions or for other political reasons. Competitive sales, if conducted properly, can remove the appearance of impropriety in the bond sale process. Disadvantages 1. The issuer may have less flexibility with respect to the structure of the offering or the timing of the sale. Depending on state or local laws governing the issuance of bonds, the Notice of Sale advertising a competitive bond offering may need to be posted well before the sale date. In this case, the issuer is more limited in its ability to move the sale date in the event that market conditions make another date advantageous. The issuer may also have less flexibility in adjusting the structural features of the issue to respond to investor interest in certain maturities, call provisions, or other characteristics. In recent years, these concerns have been mitigated to some extent due to the growing acceptance of flexible terms in the Notice of Sale, as will be discussed in greater detail below. Underwriters may build a "risk premium" into their bids to compensate for uncertainty in being able to sell bonds to investors at a particular interest rate. This occurs because underwriters have no assurance that they will receive bonds, and are thus unlikely to engage in extensive pre -sale marketing activities to determine the rates investors require for an issuer's bonds. A related concern stems from interest rate volatility found in the municipal market. If interest rates have increased in the interval between bid submission 4 and bond award, the underwriting firm's profits may be substantially reduced. The risk premium affords underwriters some protection from these uncertainties. Issuers of bonds involving a complex financing or a weak or unknown credit may have difficulty in attracting bids. Again, the risk of being able to place the bonds with investors may limit underwriting firms' interest in bonds of these issuers, and can result in higher coupon bids by firms that choose to submit bids. 4. Issuers have less control in selecting the underwriting syndicate and determining the allocation of the bonds. Certain policy objectives, such as assuring local investors access to bonds, awarding bonds to local and regional firms, or meeting Disadvantaged Business Enterprise (DBE) policy goals, are more difficult to achieve with a competitive method of sale. ADVANTAGES AND Negotiated sales also have both advantages and disadvantages, DISADVANTAGES OF A which are as follows: NEGOTIATED SALE Advantages 1. A greater incentive exists for an underwriter to engage in pre -sale marketing activities to assess investor interest in an issue, as well as demand for certain structures or maturities. For certain issuers, such as those experiencing financial difficulty or those contemplating a structure not well understood by investors, pre -sale marketing efforts may enhance investor demand for their securities. Issuers choosing to sell bonds through a negotiated sale should assure themselves that their underwriters develop and implement an effective marketing plan for the bonds. 2. An important advantage of a negotiated sale is its flexibility. The structure of the issue or timing of the sale can be adjusted as necessary to respond to changing market conditions. Hence, the issue can be designed to meet investor needs and generate cost savings for the issuer. An issuer has greater control in allocating bonds to particular underwriting firms or ensuring that bonds are available to certain investor groups. While issuers can achieve DBE or local preference goals using a competitive sale, it is often easier using a negotiated sale. Disadvantages 1. An important policy objective in any public sector procurement of services is to maintain an open, fair process. Unfavorable publicity has been generated with respect to negotiated sales, charging that underwriting firms may at times be appointed based on the level of campaign contributions or for other political reasons. Negotiated sales are more likely to result in charges of favoritism, reducing public confidence in the bond sale process and in their government officials in general. 2. Negotiated sales require that issuers make a greater effort to remain informed of developments in the municipal market in order to ensure that bonds are priced at a favorable rate, and that underwriting spreads are reasonable. Most issuers do not have the resources to devote to monitoring the municipal market on an on-going basis, and are therefore likely to have difficulty in negotiating effectively with underwriters in either of these areas. Employing a good financial advisor can mitigate this risk. FACTORS TO In preparing for the sale of bonds, the issuer must decide which CONSIDER IN method of sale is likely to result in the lowest costs for its debt and CHOOSING THE achieve other important policy objectives. This decision should be METHOD OF SALE based on the characteristics of the issuer, market conditions, and the type of financing that is contemplated. It is important to note that a bond issue is not likely to meet all of the conditions that favor one method of sale over the other. For example, a highly rated issuer planning to sell bonds with characteristics that might otherwise favor a negotiated method of sale could find that a competitive sale would be equally beneficial. A primary objective in selecting the method of sale is to choose the one that will generate the most interest for the issuer's bonds among underwriters and, more importantly, investors. 6 achieve DBE or local preference goals using a competitive sale, it is often easier using a negotiated sale. Disadvantages 1. An important policy objective in any public sector procurement of services is to maintain an open, fair process. Unfavorable publicity has been generated with respect to negotiated sales, charging that underwriting firms may at times be appointed based on the level of campaign contributions or for other political reasons. Negotiated sales are more likely to result in charges of favoritism, reducing public confidence in the bond sale process and in their government officials in general. 2. Negotiated sales require that issuers make a greater effort to remain informed of developments in the municipal market in order to ensure that bonds are priced at a favorable rate, and that underwriting spreads are reasonable. Most issuers do not have the resources to devote to monitoring the municipal market on an on-going basis, and are therefore likely to have difficulty in negotiating effectively with underwriters in either of these areas. Employing a good financial advisor can mitigate this risk. FACTORS TO CONSIDER IN In preparing for the sale of bonds, the issuer must decide which CHOOSING THE method of sale is likely to result in the lowest costs for its debt and achieve other important policy objectives. This decision should be METHOD OF SALE based on the characteristics of the issuer, market conditions, and the type of financing that is contemplated. It is important to note that a bond issue is not likely to meet all of the conditions that favor one method of sale over the other. For example, a highly rated issuer planning to sell bonds with characteristics that might otherwise favor a negotiated method of sale could find that a competitive sale would be equally beneficial. A primary objective in selecting the method of sale is to choose the one that will generate the most interest for the issuer's bonds among underwriters and, more importantly, investors. POLICE COMMISSION Sandra Michaelson Tom Carter Alvin McClure Tom Koerwitz Rudy Thibodeau Jane Bartheld Kathie Davis