BOARD OF WRIGHT COUNTY COMMISSIONERS
MAY 28, 2019
The Wright County Board met in regular session at 9:00 A.M. with Husom, Vetsch, Potter, Daleiden and Borrell present.
COUNTY BOARD MINUTES 5-21-19
Borrell made a motion to approve the minutes. The motion was seconded by Husom and carried 5-0.
Potter moved to approve the Agenda. The motion was seconded by Daleiden and carried 5-0.
Daleiden moved to approve the Consent Agenda. The motion was seconded by Borrell and carried 5-0:
1. Approve Renewal Of Annual On Sale (Including Sunday) & Off Sale Liquor License For Two Friends Of Annandale, Inc. DBA Hitching Post At Lake Center (Corinna Township) For The License Period July 1, 2019 Through June 30, 2020 Contingent Upon Town Board Approval
2. Acknowledge Warrants Issued Between May 15, 2019 And May 20, 2019
B. HEALTH & HUMAN SERVICES
1. Hire 67-Day Temp Social Worker To Cover FMLA (Aug-Oct 2019) For Current DD Social Worker
2. Position Replacements:
A. Social Worker
B. Financial Services Supervisor
C. INFORMATION TECHNOLOGY
1. Approve Revised Technology Governance & Standards Document
TIMED AGENDA ITEMS
SEAN DERINGER, SHERIFF
Authorize Signatures On Addendum To The JPA (Joint Powers Agreement) Regarding The Regional Criminal Tracking And Analysis (RCTAG) And The Central MN Criminal Intelligence Center (CMCIC)
Sheriff Deringer said the original JPA was signed in 2014 with Sherburne County. Sherburne County recently went through a major remodel of their facilities. With that, the size of the fusion center was increased and the ability to share information and work more in a partnership. Nine agencies will collaborate through this JPA. With the increase use of technology and the increased means to share information, the request is to update the JPA
Daleiden moved to approve the Addendum to the JPA with Sherburne County. The motion was seconded by Husom. Sheriff Deringer said Sherburne and Wright Counties have worked collaboratively on cases, which has proven to be valuable. Wright County will have access to and share data with that center. Sheriff Deringer said a Wright County detective will periodically work at the site. Information will be shared between the Sherburne County and the Metro centers. The motion carried 5-0.
VIRGIL HAWKINS, HIGHWAY ENGINEER
Approve Jurisdictional Change Agreement With The City Of Monticello For Fenning Avenue NE
Fenning Avenue has been identified by the City and County as a candidate for jurisdictional change. The Agreement will provide a change from the City of Monticello’s street system to the County’s highway system. It will include that portion of Fenning Avenue NE, within the City of Monticello described as:
“Fenning Avenue NE the east side of Fenning Avenue NE from 85th Street NE to the intersection of School Blvd/CSAH 18, approximately 0.56 miles total length and the west side of Fenning Avenue NE from the intersection of School Blvd/CSAH 18 to a distance 0.26 miles to the south.”
Hawkins said the project has not been planned but will be designed to meet State Aid standards. The Jurisdictional Change Agreement No. 19-54 has been approved by the City of Monticello.
Potter moved to approve the jurisdictional change agreement with the City of Monticello for Fenning Avenue NE. The motion was seconded by Daleiden and carried 5-0.
Approve Jurisdictional Change Agreement With Monticello Township For Fenning Avenue NE
Fenning Avenue has been identified by Monticello Township and County as a candidate for jurisdictional change. The Agreement will provide a change from the Township’s street system to the County’s highway system. It will include that portion of Fenning Avenue NE, within the City of Monticello described as:
“Fenning Avenue NE from CSAH 37 to 85th Street NE, and the west side of Fenning Avenue NE from 85th Street NE to the Monticello City limits on the west side of Fenning Avenue NE, approximately 1.25 miles total length.”
Daleiden moved to approve the jurisdictional change agreement with Monticello Township for Fenning Avenue NE. The motion was seconded by Potter and carried 5-0.
BOB HIIVALA, AUDITOR/TREASURER
Approve 4-10-19 Ditch Committee Of The Whole (COTW) Minutes, County Ditch 10 Public Hearing
At today’s County Board Meeting, Daleiden moved to approve the Minutes. The motion was seconded by Husom and carried 5-0. The 4-10-19 Ditch COTW Minutes follow:
Presentation by Mark Origer regarding Drainage and Storage for County Ditch 10
1. Importance of Drainage
a. Most of Minnesota needs artificial drainage to support agriculture
b. Minnesota Drainage Statures were developed in the 1800’s and refined in the 1900’s
c. During the 1900’s to 1920’s numerous public drainage systems were constructed
d. Minnesota now has 10,000 plus public drainage systems and many more private ditch and tile systems.
2. Importance of Storage
a. Storage reduces overall watershed flooding
b. Storage protects the outlet from flooding
c. Storage reduces peak flow rate and timing of peak
d. Storage provides an overall more efficient drainage system
e. Storage provides water quality benefits
f. Storage provides wildlife habitat
g. Storage provides sediment trap for easy removal and less future maintenance on a ditch system
3. Wright County Ditch 10 Watershed
a. There are 17,000 acres located in Stockholm, Cokato, Middleville and Victor Townships
b. An additional 3,330 acres drain from Victor Township near Long and Mary Lake
c. The approximate Watershed Boundary-Final Watershed was determined by Viewers
4. Storage Modeling by ISG
a. Hydrologic-Hydraulic Analysis
• Modeled entire watershed
• Measures channel flowrates and water elevations
• Measures surface flowrates and flooding
• Determines existing conditions
o Locates flooding areas
o Areas of concern and downstream impacts
b. Determines proposed conditions
• Compares to the existing conditions
• Shows timing of evens
• Compares flowrates and water elevations
• Shows how much storage?
5. Modeling Summary
a. Existing conditions shows significant flooding on mainline, downstream areas
b. Legal repairs increase drainage capacity and reduce the flooding along mainline
c. Legal repairs do increase flooding downstream on Lake Ann
d. Proposed storage helps with downstream flooding
• More efficient system
• Timing of peak flow on mainline
• Better capacity than legal repairs
• Less impacts on downstream Lakes
e. Widening of Lake Ann outlet reduces impacts of flooding from repairs
f. More storage equals a more efficient system (wetlands, ponds, culvert restrictions)
6. County Ditch 10 Storage Pond
a. 10 Acres in size, 6 feet deep, up to 60 acre-feet of storage
b. Located along junction of the Mainline and Hempel Lateral
c. Flows diverted from Hemprel Later-2,200 Acres
a. Move forward with the Hempel-Brose 10-acre storage pond.
8. Next Steps and Timeline
a. Bidding Documents for the Pond and awarding the Bid (April-May 2019)
b. Pond Construction (Summer-Fall 2019)
c. Updates to Re-determination of Benefits
d. County Ditch 10 Repair Report (Ongoing)
e. County Ditch 10 Public Hearing (Fall 2019, Spring 2020)
f. Construction (Spring-Fall 2020)
Origer concluded his presentation.
9. Detjen presented to the benefited landowners present at the hearing the cost of $409 thousand for the completion of the proposed Brose project. Detjen also explained the $2.3 million indicated on the property owners’ reports mailed to the benefited landowners by the viewers. (see attachment)
10. Proposed options
(Hempel-Brose) 10-acre storage pond with the inlet at the downstream end of Hempel Lateral open ditch and outlets into the mainline open ditch just upstream of the intersection of the Hempel-Mainline.
Channel between Lake Ann and Lake Emma will be cleaned to an elevation of 984.92 ft. and a bottom width of 20 ft. This elevation remains the same as the existing low point of the channel.
No work proposed on the outlet channel of Grass Lake.
Borrell asked about putting a structure in on Grass Lake, to lower it one foot, but then allow it to bounce up to two feet. Origer explained that the flow to Grass Lake, after you clean out the down stream areas, there is so much more water. You could have zero outflow from Grass Lake and you are still going to have the increased downstream because the difference between existing conditions and cleaning the ditch system is so significant.
Borrell felt something needs to be done with Grass Lake, as it is not an exporter of the phosphorous and it is not a clean lake. Origer added that hydraulically the amount of water coming from Grass Lake does not add up to what is downstream, and it impacts the main line differently.
Questions from the landowner’s present were addressed and answered by staff and Origer. The consensus was to proceed with the storage project.
Meeting was adjourned.
County Drainage Authority Minutes Submitted by: Janice Edmonson, Drainage Administrator
(End of 4-10-19 Ditch Committee Of The Whole Minutes)
Approval To Reject Bids For The County Ditch #10 Holding Pond (Brose Pond)
Three bids were received by ISG on 5-17-19 for the County Ditch 10 Pond (Victor Township). Matt Detjen, Ditch Coordinator, said the Engineer’s estimate on this project is $297,000 and the low bid received was $501,442.10 (68% over the Engineer’s estimate). Possible reasons for the high bids include a short timeframe for construction, late bidding period, unknown soil conditions of the pond area, and the absence of local bidders. Mobilization prices were significantly higher than the estimate. Other items include open ditch repair work, concrete weir construction, and high seeding costs. Staff recommends rejecting bids and rebidding at a future date.
Borrell moved to reject the bids. The motion was seconded by Daleiden and carried 5-0.
ITEMS FOR CONSIDERATION
5-09-19 COMMITTEE OF THE WHOLE MINUTES
At today’s County Board Meeting, Potter moved to approve the minutes. The motion was seconded by Husom. The motion includes the following correction: Page 2, 2nd to last paragraph, last sentence should read, “The County received $2.2 million from the FBI, so the balance would be at $5.7 million” (Husom). The motion to approve the minutes carried 5-0:
I. Discussion With Ehlers Regarding Bond Structure
Bruce Kimmel, Vice President and Senior Financial/Municipal Advisor, Elhlers, distributed spreadsheets with four bond scenarios and one page that noted Existing Callable Bonds / Debt Service (see attachments).
Bob Hiivala, Auditor/Treasurer, said he and Lee Kelly, County Administrator, worked with Ehlers to present a scenario with principal payments on the bond issue every year that would keep annual payments to $11.2 million.
Kimmel referenced the page regarding Scenario 1: County Issues 25-Year Level Bonds to Fund $57.3 Million for Government Center and Joint Training Facility with Extra $2.2 Million Capacity. Kimmel said the County Board recently requested one bond issue for the Government Center (GC) and one for the Tactical Training Center (TCC). The first scenario was presented at a previous Committee Of The Whole with a 25-year level debt service. Kimmel said the chart shows how the County could structure the bond issue with the GC and the TCC and maintain the 25-Year level debt service, assuming a maximum bonding issue of $60 million. The main concern with this one is that the debt service in the period from 2021 to 2029 is about $11.7 million, which is higher than the $11.2 million payment threshold. He said Scenario 1 is an efficient structure with level debt service, but it creates a higher payment during that eight-year time period.
Kimmel said they took Scenario 1 and adjusted it in Scenario 2: County Issues Maximum $11.2 Million Total Annual Debt Service to Fund $53.7 Million for Government Center and Joint Training Facility with Extra $2.2 Million Capacity. The total aggregate debt service was adjusted during 2021 to 2029 in Scenario 2 to not exceed $11.2 Million. Scenario 2 retained the amortization schedule for the taxable TTC bonds that is shown in Scenario 1. The GC bonds (shown with brown bars on the chart) are interest-only from 2020 to 2026 until the TCC bonds drop off. The GC bonds then take over the difference from 2027. Kimmel said this scenario looked pretty good due to getting the taxable TCC debt paid off first, since it is at a higher interest rate. Then the payment switches over to paying off principal on the GC bonds.
Kimmel said Hiivala asked for a scenario where the GC bonds start amortizing principal in 2021. In 2020, the payments are interest-only to avoid a higher initial debt service. The payments increase from 2019 to 2021. In Scenario 3: County Issues Maximum $11.2 Million Total Annual Debt Service (2019B extended to 2029) to Fund $57.3 Million for Government Center and Joint Training Facility with Extra $2.2 Million Capacity, the TCC amortization extends for a nine-year maximum period in order to allow the County to start amortizing the debt on the GC in 2021. About $415,000 will be amortized on the GC in 2021 (versus Scenario 2 which doesn’t show amortization on the GC until 2027). The amortization on the GC bonds from 2021 to 2026 increases from $425,000 to $500,000 per year. Although the County is paying slightly higher interest rates on the TCC taxable bonds by extending the term, there is a $3,000 savings in interest on the 25-year amortization by paying off some of the GC debt early compared to Scenario 2.
Kimmel said initially he was not in favor of Scenario 3 because of the higher interest rate on the taxable TCC bonds, and because the County may not get competitive interest rates on the first, small maturities on the GCC bonds. However, because a 25-year bond involves so much interest, frontloading some of that debt service payment on the GC bonds offsets a slightly higher cost on the interest rate. Scenario 3 appears to meet the County objectives of keeping debt service at or below $11.2 million per year and allowing debt service to fall off over time. If the desire is to avoid interest-only payments and maintaining an annual debt load of $11.2 million, then Scenario 3 might be the best option.
Kimmel turned to Scenario 4: County Issues Maximum $11.2 Million Total Annual Debt Service w/Fastest Payoff to Fund $57.3 Million for Government Center and Joint Training Facility with Extra $2.2 Million Capacity. Kimmel said this Scenario gets the GC paid off by 2037. The County would save interest costs but given the uncertainties the County Board has expressed about the potential change in the tax base with the possible closing of the nuclear plant, future road projects, and capital improvement plans, this may not be the best option.
Kimmel said if the County Board decided on Scenario 3, Ehlers would suggest that the taxable TCC bonds be callable as of 2026, 2027, 2028, and 2029. Those last few maturities could be refinanced or paid off early, potentially saving a couple of million dollars. Ehlers would be comfortable recommending a call date in 2029 for the GC bonds. Those bonds would be eligible from 2030 to 2045 for either paying off early, shortening the terms, or restructuring in some way to achieve interest cost savings. Kimmel cautioned that it is easier to shorten bond terms than extend them. His concern with Scenario 4 is that it could be financially and politically costly if the County reached the call date in 2028 and needed to refinance or extend the bonds.
Turning to the last page, Existing Callable Bonds / Debt Service, Kimmel said this does not include the 2019 bonds. The 2012 bonds for GC improvements are callable in December 2020. Hiivala said the intent is to pay them off. Kimmel said they amount to approximately $500,000 and would save about $21,000 in interest. The 2015 and 2016 bonds for the Highway bonds, the 2017 bonds for the Jail refinance, and the 2018 bonds for the Justice Center financing represent a significant opportunity for savings.
Chris Mickelson, Ehlers, said the combined interest rate for the 2019A and B bonds is currently estimated at a blended rate of 3.26 percent. 2019A is the longer issue and is estimated at 3.27 percent. The 2019B is estimated at 3.16 percent and is lower due to its shorter term and taxable status. Kimmel said the IRS considers the FBI a private entity. The Bond Council determined that the TCC bonds should be taxable financing. This gives the County complete flexibility regarding how the space is utilized with renting or leasing.
Discussion ensued regarding potential uses of the TCC and whether or not the bonds should be taxable. Kimmel recommended erring on the taxable side. Potter did not want to split hairs about which portion of the building is taxable and which isn’t and generate an IRS audit. Hiivala said the cost of the administrative work to determine which portion was taxable and which was not would eat up any savings. Kimmel said the County would need to demonstrate that the $2 million from the FBI only goes for the definable portions that they are using. Any nonprofit or federal agencies that wanted to use the TCC would trigger a violation.
Kimmel said the $53 million amount in tax exempt bonds would yield approximately $56.2 million of proceeds for the project. The $7 million taxable issue would yield almost $6.9 million. The $53 million for the GC / $7 million for the TCC is a decent split. If there is extra cash, Kimmel suggested putting it into the TCC. He felt the $53 million / $7 million came close to funding both purposes.
Sean Deringer, County Sheriff, said the most recent meeting with BKV Group indicated a preliminary cost for the TCC at around $7.9 million. The County received $2.2 million from the FBI, so the balance would be at $5.7 million.
Kimmel said some cushion was built into the numbers. It appears that the total costs for the TCC are about $7.5 million. If the bond issue is kept at $60 million, the ratio could change to $54 million / $6 million.
Hiivala said the adopted resolution related to this bond issue stated, “not to exceed $60 million,” including issuance costs. Kimmel said it would be helpful to know if the bond issue will be $59 million or $60 million. The amount can be reduced to whatever number is chosen to go out to market up to the date of sale. After the date of sale, the amount is set. If there are change orders or cost overruns, the County could reduce the debt levy with any unused bond funds. Hiivala said the intent is to earmark any unspent construction funds for the Debt Service Fund.
Commissioner Mark Daleiden asked Kimmel whether he thought interest at 3.26 percent was reliable. Kimmel said interest rates have been dropping.
Potter said the graph for Scenario 3 is easy to understand and shows the payoff clearly. Vetsch added that Scenario 3 doesn’t put taxpayers at a lot of risk. Borrell said he prefers Scenario 4 because it pays off debt.
Kimmel asked whether the bond issue should be $53 million for the GC and $7 million for the TCC, or $54 million / $6 million if the County gets $2 million from the FBI. The consensus was to go to a bond issue of $54 million / $6 million.
Kimmel verified that both existing and new bonds will be callable at 2030. The most expensive bonds could be shortened at that point for better interest rates.
Hiivala said Scenario 3 gives the County the most options. Kimmel confirmed the allocation would be changed to $54 million / $6 million with the terms as specified in Scenario 3. He will work with Hiivala and Kelly for the rating call, taking bids on 6-3-19, and a follow-up meeting with the County Board on 6-4-19. Kimmel said contracts are typically accepted before financing. Kimmel said Kelly and Hiivala were comfortable moving forward with the bond sale and locking in the interest rates, since the County will likely be very close to the bond proceeds, or the cost of the project may be slightly more than the bonding in aggregate. Wilczek said he will get bids through June but won’t accept them until mid-July. Hiivala said Ehlers typically sends an updated calendar of the bond process.
Recommendation: Authorize proceeding with the bonding process, following Scenario Three with $54 million for the Government Center and $6 million. Bids will be taken on 6-3-19 and will be presented to the County Board on 6-4-19.
5-09-19 COTW Minutes submitted by Deb Schreiner, Administrative Specialist
(End of 5-09-19 COTW Minutes)
5-21-19 FINANCE / CIP COMMITTEE MINUTES
At today’s County Board Meeting, Daleiden moved to approve the minutes. The motion was seconded by Husom and carried 5-0. The minutes follow:
I. Draft Finance Policies and Procedures
Assistant County Administrator Vergin provided an update regarding the draft document. It was noted that this is a working document, that will be modified and updated over time based on things such as ERP processes, statute changes and other business decisions made by the County.
The Committee discussed the policies and their purpose. Additional time is needed to get through the entire document, so the Committee will need to meet again. Per the meeting of April 24, 2019, the Committee will continue with the timeline identified, which has June 12 as the next Finance /CIP Committee meeting
RECOMMENDATION: Continue with the timeline that was previously identified on April 24, 2019.
• June 12 Finance/CIP Committee meeting for final review and recommendation
• June 18 Board receives final Policies with recommendations from Committee
5-21-19 Finance / CIP Minutes submitted by Sue Vergin, Assistant County Administrator
(End of 5-21-19 Finance / CIP Minutes)
5-15-19 OWNERS COMMITTEE JUSTICE CENTER MINUTES
At today’s Board Meeting, Potter moved to approve the minutes. The motion was seconded by Borrell and carried 5-0. The minutes follow:
I. Justice Center Updates
Paulsen spoke to the short term schedule & progress on the site. Level 0 has concrete poured and block is going up for the secure transfer hallway. One elevator in the SE corner is being installed. Level 1, sheetrock is mostly installed and taped. The bathrooms are getting hard ceilings installed. Light fixtures are anticipated for delivery soon and drywall will go in after placed. Level 2, mechanical/electrical rough ins are in. Contractors are curently working on drywall. Level 3, framing is being installed from the south to the north. The MEP work will follow, also starting from the south.
Tom Kelly asked about the schedule, Paulsen stated we are on schedule longterm. The roof delay caused some short term schedule issues, however long term we are on pace for the total project and anticipate roughly a June 1, 2020 occupancy. Kile asked about the emergency door scaffold on the LEC stairwell that was removed. Paulsen stated the plan is that it will be graded at the end of the week and the exit can be opened again.
Currie walked through the budget summary spreadsheet and noted the contingency balance is at $1,616,309. Overall the project is on budget and on schedule. Currie noted the security drawings have gone out and Filippi stated it is moving forward with pricing & review. Pricing and additional information should be available in roughly the next 30 days.
Bowen asked about conference room schedulers, Enright and Wilczek spoke to the status. Enright state the technology is currenlty being reviewed and designed for the site. Wilczek added that the conference room scheduling devices create some challenges both with logistics and infrastructure. Spaude has stated that he sees some IT challenges with them and some are not overly user friendly. Wilczek stated there will be more conversations weighing the cost/benefit of the devices to determine if they will be added.
Currie & Hieb spoke to the PRs and Change orders. They stated the additional restroom in the wRight Choice space is at a cost of %15,245.79.
Kelly asked about the PA system and Wilczek spoke to the status of the current proposal. The cost proposal is higher than was anticipated, so the IT team and Administration are going to meet with the vendor again to discuss the proposal and determine ways to potentially reduce the cost.
McPherson asked about the Courtroom calendar display screens. Hieb and Enright confirmed that the confusion is resolved and the screens are in the plan. There was an issue with the rough-ins being missed, but they will be added. She also reiterated that communication with State IT is very important at this time and that any changes to technology need to be approved by McPherson and Tenney. McPherson asked to confirm the data jacks in the Chambers were revised to the requested locations. Hieb & Paulsen confirmed the change is resolved and complete.
MacMillan spoke to the window film on offices and the amount/style that is installed. Wilczek stated that more discussion is needed and will be happening during furniture discusssions over the next several months. Potter stated he is comfortable with each department having a different glass film for their specific department needs as long as the cost is comparable.
Potter commented that he has been very happy with the architect and construction manager on the project. People are noticing the facility and it is starting to look like the strategic project that has been thought through for a number of years.
McPherson asked about traffic flow on Braddock and movement in/out of the site. Potter and Wilczek stated that HWY is working on a traffic flow study to assess the area. There have been discussions with MNDOT about possibilities on HWY 25 and the flow at the intersection near Public Works.
RECOMMENDATIONS: Next meeting 6/19/19 @ 1:00 pm.
Submitted by: Alan Wilczek, Facilities Services Director
(End of 5-15-19 Owners Committee Justice Center Minutes)
ADVISORY COMMITTEE/ADVISORY BOARD UPDATES
1. Veteran’s Day Events. Memorial Day events were held throughout the County. At today’s Board Meeting, Commissioners voiced appreciation to all veterans for their service.
2. Wright County Community Action. Daleiden reported a summit will be held on 5-30-19 at River City Extreme in Monticello. Sign up is through the Wright County Community Acton website.
3. Great River Regional Library Board. Potter attended a meeting on 5-21-19. The preliminary budget was discussed. Grant funding came in higher than anticipated so the result may be a 0% increase. One thing that could impact that is the wage reopener that is required this fall.
4. I-94 Coalition. Potter attended a meeting last week. The legislative special session ended on Saturday in a stalemate. Not much happened regarding transportation. Transportation will need to be addressed in next year’s bonding cycle. Members of the Coalition will go to Washington D.C. in December and will focus on the metro side coming out of Maple Grove. Regarding the BUILD (Better Utilizing Investments to Leverage Development) Grant, the I-94 strip between Monticello and Albertville was submitted but did not place because it is outside the four-year STP (Surface Transportation Program). The Hwy. 610 project in the metro area was submitted for the possible BUILD Grant this year.
5. Daleiden referenced material relating to the preliminary items the Governor is to sign. One relates to the County’s reimbursement of the costs associated with the lawsuit with the Office of the State Auditor. Also included is an increase in county and city aid. Potter said aid will be restored back to the 2002 level.
6. Administrator Updates:
A. ERP Sessions. Sessions were held last week on finance, budget and procurement. Upcoming sessions will include Human Capital Management.
7. Relating to state assessed property and the nuclear power plant, Vetsch said there was no major success in getting any type of changes this year. A lot of attention was brought to the issue, but it fell short of getting any type of legislation passed to help mitigate those issues or to help with the timeline.
8. Greg Kryzer, Assistant County Attorney, said he understands there will be a task force created related to seizures that will report back to the legislature next year. He is unsure whether the amendment that made it to the House became law. He stated the County Attorney’s Association and Sheriff’s Association agree there are areas that can be streamlined and made better regarding seizures. He said the “complete repeal” method described in the newspaper is not the method to take.
The meeting was adjourned at 9:41 A.M.
Published in the Herald Journal June 21, 2019.