city council meeting agenda july 24, 2017 - 5:30 pm city

CITY COUNCIL MEETING AGENDA

July 24, 2017 - 5:30 PM City Hall Council Chambers

The Moorhead City Council welcomes and encourages public input on issues listed on the agenda or of general community interest, time and Council permitting. Speakers are limited to 3-minute presentations. Advertised public hearings are scheduled so that the public is afforded an opportunity to speak. Public hearings are generally scheduled 15 to 30 minutes after the start of the meeting; however the starting time may vary depending on other scheduled agenda items. Citizens wishing to address the Mayor and Council regarding a specific agenda item, other than public hearings, will be afforded an opportunity during the discussion of that item. Citizens wishing to speak on matters not listed on the agenda will be afforded the opportunity to do so under the heading “Citizens Addressing the Council,” usually scheduled at the beginning and end of the agenda. Each person requesting the opportunity to speak is asked to fill out a “Request to Speak Form.”

City Council Meeting

1. Call to Order and Roll Call

2. Pledge of Allegiance

3. Recognitions - Presentations

A. 2016 Comprehensive Annual Financial Report and Audit Presentation

4. Approve Minutes

A. July 10, 2017 City Council Meeting

B. July 17, 2017 Special City Council Meeting

5. Citizens Addressing the Council (Time Reserved: 15 Minutes)

6. Agenda Amendments

7. Consent Agenda

All items listed with an asterisk ( * ) are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member so requests, in accordance with the “Council Rules of Procedure”. In such event, the item will be removed from the General Order of Business and considered in its normal sequence on the agenda.

8. Mayor and Council Appointments

Public Hearings (5:45 p.m.)

9. Public Hearing to Consider a Proposal to Establish a Redevelopment Tax Increment Financing District (Woodlawn Pointe Redevelopment

MOORHEAD CITY COUNCIL MEETING AGENDA July 24, 2017

Project) on the Site of the Former Moorhead Power Plant

A. Resolution Establishing Woodlawn Pointe Redevelopment Project and Approving the Redevelopment Plan and Establishing the Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) and Approving the Tax Increment Financing Plan

Economic Development Engineering Department

10. Resolution to Approve Engineering Services Agreement with SRF Consulting Group for Final Design (Phase 2) for the SE Main Ave/20 St/21 St Railroad Grade Separation Project. Eng. No. 02-2-2F

A. Resolution to Approve Engineering Services Agreement

Parks and Recreation Department

11. *Resolution to Approve Grant Submittal: Midtown Trail - Woodlawn Park to Gooseberry Mound Park (River Corridor Trail)

Public Works Department

12. *Resolution to Approve Budget Adjustment and Award Bid to Replace City Hall Roof

Police Department

13. *Resolution to Authorize Internal Service Fund Reserve Transfer for Scheduled Equipment Replacement

Moorhead Public Service

14. *Approve Contract and Procedure for Transmission Operator Services with Western Area Power Administration

15. *Approve Promissory Note Related to Land Purchase for Future

Substation

Administration

16. Approve Licenses - Permits

A. *Resolution Approving the Sound Amplification Permits

17. *Resolution to Waive Bonding Requirements and Authorize Issuance of Replacement Check

18. *Resolution to Approve Revised Meeting Schedule for 2017

19. Resolution authorizing the City of Moorhead to participate in the

MOORHEAD CITY COUNCIL MEETING AGENDA July 24, 2017

Minnesota GreenStep Cities Program

20. Mayor and Council Reports

21. City Manager Reports - Updates

22. Executive Session

A. Executive Session - Labor Negotiations Strategy Regarding Classification and Compensation Study Results

B. Executive Session - Purpose of Discussion of Land Sale

Negotiations for a Redevelopment Project Located at the Southeast Corner of Eighth Street and Main Avenue - Parcel # 58.575.0670

23. New Business

24. Citizens Addressing the Council (continued, if necessary)

Upon request, accommodations for individuals with disabilities, language barriers, or other needs to allow participation in City Council meetings will be provided. To arrange assistance, call the City Clerk’s office at 218.299.5166 (voice) or 711 (TDD/TTY).

Visit our website at www.cityofmoorhead.com

http://www.cityofmoorhead.com/

Mayor and Council Communication

July 24, 2017 Page 1 of 1

SUBJECT: 2016 Comprehensive Annual Financial Report and Audit Presentation RECOMMENDATION: The Mayor and City Council are asked to receive a review of the financial results of the City’s operations for 2016. BACKGROUND / KEY POINTS: Each year a representative of the Eide Bailly audit firm has come before the City Council to summarize the results of the City’s annual audit. This year’s review of the 2016 Comprehensive Annual Financial Report (CAFR) will be presented by Derek Flanagan, CPA, and Partner. Final printed copies of the Executive Summary will be provided at the meeting for reference purposes. In addition, please bring the reports that were distributed at the June 26th meeting for additional information and to help answer any questions that might arise. FINANCIAL CONSIDERATIONS: There are no financial considerations to be addressed. VOTING REQUIREMENTS: Not Applicable Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.

Respectfully Submitted:

Christina Volkers City Manager

Department: Finance Prepared by: Wanda Wagner, Finance Director Attachments: Executive Summary

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Agenda Item #3.A.

www.eidebai l ly.com

Executive Summary December 31, 2016

City of Moorhead, Minnesota

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Agenda Item #3.A.

1

City of Moorhead, Minnesota Executive Summary

Year Ended December 31, 2016 Purpose of the Executive Summary The City receives audited financial statements each year, however the document is long and readers may find it difficult to read and understand. In an effort to help facilitate understanding we have put together an executive summary containing summarized information from the audited financial statements, as well as graphs and ratios. We believe the City Council, management, and citizens of Moorhead will have a clearer picture of the financial condition of the City by reading this summary. This is not a required report and we offer no opinion on the executive summary. We hope this executive summary encourages discussion of the City’s financial condition and to:

Alert the City Council and management to financial condition trends, both favorable and unfavorable. Put the City’s financial condition in perspective by compiling data for several years.

We obtained the idea of an executive summary format based on a review of the Comprehensive Annual Financial Report (CAFR) of the City of Sioux Falls, South Dakota, done by the Internal Audit department of the City in May 2009. Audit Opinion The City received a “clean” audit opinion. What does that really mean? The audit opinion is a brief report that appears with the financial statements. A clean audit opinion is more precisely referred to as an unmodified opinion. An unmodified opinion means that the financial statements have been prepared using accounting principles generally accepted in the United States of America (GAAP), do not contain material misstatements, and are fairly presented. Some readers of financial statements with an unmodified (clean) audit opinion believe that the auditors are signifying that the organization has a financial clean bill of health. They may believe the auditors are indicating that there is no fraud, that the organization is using its resources effectively and efficiently, and that the organization is in compliance with all laws and regulations. The auditor’s report (audit opinion) on a financial statement audit is merely the auditor’s professional opinion, based on audit work, on whether the financial statements were prepared in accordance with GAAP and are free from material misstatement. Audit of Federal Funds All non-Federal entities that expend $750,000 or more of Federal awards in a year are required to obtain an annual audit in accordance with the Single Audit Act. A single audit is intended to provide a cost-effective audit in that one audit is conducted in lieu of multiple audits of individual programs. During 2016 the City expended approximately $2,634,000 in Federal awards. For single audit planning purposes the City was determined to be a low-risk auditee. The City received an unmodified opinion on compliance for the major federal award programs report.

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Agenda Item #3.A.

2

City of Moorhead, Minnesota Cash and Investments (In Thousands)

Years Ended December 31, 2012 through December 31, 2016 General Fund

15,142 14,565

15,949 15,671

13,800

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2012 2013 2014 2015 2016

Special Revenue Funds

-

500

1,000

1,500

2,000

2,500

3,000

Park EDA Library Mass Transit CDBG Rental Reg'n

2012

2013

2014

2015

2016

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Agenda Item #3.A.

1 Evaluating Financial Condition: a Handbook for Local Governments, page 71 3

City of Moorhead, Minnesota Liquidity

Years Ended December 31, 2012 through December 31, 2016 Liquidity refers to an organization’s ability to pay short-term financial obligations. Liquidity involves determining the level of cash on hand and in the bank and other assets that can be easily converted to cash. This cash position is compared to accounts payable and other current liabilities as well as that portion of long-term liabilities that are due within one year. The formula for calculating the liquidity ratio is:

Cash and cash equivalents Accounts payable and other current liabilities + Long-term liabilities due within one year

3.0

2.52.4

1.8

2.3

2.3 2.32.2

1.8

2.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2012 2013 2014 2015 2016

Governmental Activities

Governmental and Business TypeActivities

Governmental activities include the General Fund, special revenue funds, capital project funds, and debt service funds. Business-type activities include the proprietary funds such as Moorhead Public Service, Wastewater Treatment, Storm Water, Sanitation, Golf Course, Sports Center, Pest Control, Forestry, and Municipal Airport. A liquidity ratio of less than one to one (for example 0.8) is considered by financial analysts to be a negative factor in an organization’s financial condition. Liquidity is a controversial financial indicator according to many analysts. Because the ratio can change daily according to receipt of cash, any analysis of the liquidity ratio must be done at the same time of the year for a meaningful comparison.1 This comparison was done with the year-end cash and liability position.

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Agenda Item #3.A.

4

City of Moorhead, Minnesota Budget to Actual – General Fund Year Ended December 31, 2016

Variance WithOriginal Budget Final Budget Actual Final Budget

RevenuesTaxes 2,765,209$ 2,765,209$ 2,688,777$ (76,432)$ Intergovernmental 8,673,543 9,349,001 9,265,597 (83,404) Charges for services 2,479,595 2,481,845 1,714,282 (767,563) Licenses and permits 650,045 650,045 1,174,852 524,807 Fines and forfeitures 480,800 480,800 513,874 33,074 Other 259,134 259,134 381,786 122,652

Total revenues 15,308,326 15,986,034 15,739,168 (246,866) -1.5%

NegativeExpenditures

Administration 2,590,339 2,734,362 2,552,344 182,018 Police 8,900,934 9,296,659 9,113,972 182,687 Fire 3,892,567 4,165,465 4,038,787 126,678 Planning & neighborhood 1,782,370 1,802,727 1,602,396 200,331 Engineering 1,709,586 1,795,196 1,668,309 126,887 Public works 4,669,522 4,769,522 3,655,448 1,114,074

Total expenditures 23,545,318 24,563,931 22,631,256 1,932,675 7.9%

Positive

Revenues Under Expenditures (8,236,992) (8,577,897) (6,892,088) 1,685,809

Other Financing Sources (Uses)Transfers in 7,976,930 7,976,930 8,045,783 68,853 Transfer out - (552,400) (655,334) (102,934)

Total other financing sources (uses) 7,976,930 7,424,530 7,390,449 (34,081)

Net Change in Fund Balance (260,062)$ (1,153,367)$ 498,361 1,651,728$

Fund Balance - Beginning 16,678,903

Fund Balance - Ending 17,177,264$

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Agenda Item #3.A.

5

City of Moorhead, Minnesota General Fund Revenues

Years Ended December 31, 2014 through December 31, 2016

8,155,014 8,441,502 8,521,909

8,961,126 9,265,597

2,368,509 2,331,589

1,490,439 1,877,366

2,688,777

1,148,662 1,521,828

2,746,620

1,771,867 1,714,282

636,465 749,377

849,029 803,311 1,174,852 826,842

807,448

816,897 787,991 895,660

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6

Intergovernmental

Taxes

Charges for services

Licenses and permits

Other

2012 2013 2014 2015 2016

Intergovernmental 8,155,014 8,441,502 8,521,909 8,961,126 9,265,597 Taxes 2,368,509 2,331,589 1,490,439 1,877,366 2,688,777 Charges for services 1,148,662 1,521,828 2,746,620 1,771,867 1,714,282 Licenses and permits 636,465 749,377 849,029 803,311 1,174,852 Other 826,842 807,448 816,897 787,991 895,660

Total 13,135,492 13,851,744 14,424,894 14,201,661 15,739,168

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Agenda Item #3.A.

6

City of Moorhead, Minnesota General Fund Expenditures


1,041,237 1,191,254 1,283,116 1,421,018 1,602,396

1,348,292 1,907,485 1,345,479 1,525,345 1,668,309

2,082,437 2,130,479 2,261,348 2,281,909

2,552,344

3,326,976 3,408,739

4,599,588 3,562,089 3,655,448

4,369,639 4,647,842 3,469,896 3,912,678

4,038,787

7,266,219

7,766,345 8,110,468 8,243,020

9,113,972

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6

Police

Fire

Operations

Administration

Engineering

Community services

2012 2013 2014 2015 2016Police 7,266,219 7,766,345 8,110,468 8,243,020 9,113,972 Fire 4,369,639 4,647,842 3,469,896 3,912,678 4,038,787 Operations 3,326,976 3,408,739 4,599,588 3,562,089 3,655,448 Administration 2,082,437 2,130,479 2,261,348 2,281,909 2,552,344 Engineering 1,348,292 1,907,485 1,345,479 1,525,345 1,668,309 Community services 1,041,237 1,191,254 1,283,116 1,421,018 1,602,396

Total 19,434,800 21,052,144 21,069,895 20,946,059 22,631,256

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Agenda Item #3.A.

7

City of Moorhead, Minnesota General Fund Expenditures – by Type


11,613,741 12,022,078

12,625,080

13,636,074

14,878,029

5,297,446 6,371,709

5,839,455 5,156,197

5,801,499

2,424,468 2,542,786 2,492,469 2,054,909 1,933,743

99,145 115,571 112,891 98,879 17,985 -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6

Personal services

Other services & charges

Supplies

Capital outlay

2012 2013 2014 2015 2016

Personal services 11,613,741 12,022,078 12,625,080 13,636,074 14,878,029 Other services & char 5,297,446 6,371,709 5,839,455 5,156,197 5,801,499 Supplies 2,424,468 2,542,786 2,492,469 2,054,909 1,933,743 Capital outlay 99,145 115,571 112,891 98,879 17,985

Total 19,434,800 21,052,144 21,069,895 20,946,059 22,631,256

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Agenda Item #3.A.

4 Appropriate Level of Unrestricted Fund Balance in the General Fund, GFOA Best Practice, 2009 5 Statement of Position, Fund Balance for Local Governments, OSA recommended practice, 2012 6 City of Moorhead Fund Balance Policy, adopted December 12, 2011 8

City of Moorhead, Minnesota General Fund Unrestricted Fund Balance

Years Ended December 31, 2012 through December 31, 2016 Fund balance is the cumulative difference between fund assets and fund liabilities. Fund balance is further divided into nonspendable, restricted, committed, assigned, and unassigned categories. Nonspendable fund balances represents amounts that cannot be spent because they are not in spendable form, such as inventory and prepaid expenses. Restricted fund balance is legally restricted and cannot be appropriated for other spending. Committed fund balance is intended for specific activity and imposed by formal action of the city council but is not legally restricted. Assigned fund balance is also intended for a specific activity by city designated individuals, but is also not legally restricted. Unassigned fund balance can be thought of as reserved for a “rainy day” fund. A positive fund balance:

Contributes to a favorable bond rating

Produces investment income

Provides a source of working capital to meet cash flow needs

Offers a cushion for unexpected expenditures or revenue shortfalls

The Government Finance Officers Association (GFOA) encourages local governments to adopt a policy on the fund balance in the general fund such that the unrestricted portion of fund balance (committed, assigned, and unassigned) is maintained at no less than 5 to 15 percent.4 The State of Minnesota Office of the State Auditor (OSA) recommends that at year-end local governments maintain an unrestricted fund balance in their general fund and special revenue funds of approximately 35 to 50 percent of fund operating revenues or no less than five months of operating expenditures.5 The City will strive to maintain at least 60% of the City’s General Fund operating budget, excluding those accounts associated within the Restricted category, in the combined total of the General Fund Committed, Assigned and Unassigned fund balances. When the Unrestricted General Fund balance is projected to drop below 40%, the City shall initiate measures to either generate additional revenue or to reduce expenditures through a budget reduction, or a combination of both.6

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Agenda Item #3.A.

9

City of Moorhead, Minnesota General Fund Unrestricted Fund Balance

Years Ended December 31, 2012 through December 31, 2016 The City’s unrestricted fund balance (committed, assigned, and unassigned) as a percentage of expenditures in the General Fund for the last five years is as follows:

65.5%

59.5%

65.8%68.2%

59.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

2012 2013 2014 2015 2016

The actual amount of unrestricted fund balance in the General Fund at the conclusion of the last five years was:

2012 2013 2014 2015 201612,720,102$ 12,527,717$ 13,873,553$ 14,283,077$ 13,461,991$

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Agenda Item #3.A.

10

City of Moorhead, Minnesota General Fund Operating Expenditures Per Capita

Years Ended December 31, 2012 through December 31, 2016 Calculating the operating expenditures of the City’s general fund relative to changes in population is a commonly used financial indicator. If the cost of providing services is rising faster than the population, this may be an indicator of inefficiency or decreased productivity. Any calculation should take into account the effects of inflation. Additionally, increased services provided by the local government can affect this ratio. Operating expenditures are used to calculate this ratio because capital expenditures, such as buildings and heavy equipment, can fluctuate tremendously and make trend analysis difficult. The formula for calculating operating expenditures per capita is:

Operating expenditures (constant dollars) Population

A warning trend would be increasing operating expenditures per capita that are not explainable by inflation or increased services. The operating expenditures per capita in the general fund, adjusted for inflation, are as follows:

$465 $480 $484

$453 $474

$0

$100

$200

$300

$400

$500

$600

2012 2013 2014 2015 2016

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Agenda Item #3.A.

11

City of Moorhead, Minnesota Moorhead Public Service Funds


42,321,768 44,530,288 45,408,207 46,537,433

49,582,460

30,505,677 31,507,837 33,021,570

34,437,445 37,226,564

11,816,091 13,022,451 12,386,637 12,099,988 12,355,896

7,845,257 8,235,624 8,367,884 8,706,038 8,931,293

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

2012 2013 2014 2015 2016

Operating revenues

Operating expenses

Operating income

Net transfers out

This represents the Electric and Water funds. Operating revenues consist of sales and other miscellaneous charges to customers. Operating expenses consist of salaries and benefits, purchased power, professional services, insurance, repairs and maintenance, supplies, depreciation, and other miscellaneous expenses. Operating income is the difference between operating revenues and operating expenses. Net transfers out are the annual appropriations to the City’s General Fund, Economic Development Fund, and Capital Improvement Fund.

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Agenda Item #3.A.

12

City of Moorhead, Minnesota City Utility Funds


13,141,781 13,504,285 14,070,697

16,151,370 16,898,281

10,185,176 10,608,236 10,785,906

11,855,274 12,562,893

2,956,605 2,896,049 3,284,791

4,296,096 4,335,388

1,838,841 2,158,803 2,584,533 1,931,646 2,076,910

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2012 2013 2014 2015 2016

Operating revenues

Operating expenses

Operating income

Net transfers out

This represents the Wastewater Treatment, Storm Water, Sanitation, Pest Control, Forestry, and Street Light Utility funds. Operating revenues consist of sales and other miscellaneous charges to customers. Operating expenses consist of salaries and benefits, disposal fees, professional services, insurance, repairs and maintenance, supplies, utilities, equipment rental, depreciation, and other miscellaneous expenses. Operating income is the difference between operating revenues and operating expenses. Net transfers out are the annual appropriations to the City’s governmental funds.

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Agenda Item #3.A.

13

City of Moorhead, Minnesota Other City Proprietary Funds


1,816,599 1,817,283 1,821,314 1,968,695

2,107,346

2,751,624 2,760,842 2,779,357 2,822,753 3,026,888

(935,025) (943,559) (958,043)(854,058) (919,542)

568,250 538,250 548,250

563,109

1,255,756

(1,500,000)

(1,000,000)

(500,000)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2012 2013 2014 2015 2016

Operating revenues

Operating expenses

Operating loss

Net transfers in

This represents the Golf Course, Sports Center, and Municipal Airport funds. Operating revenues consist of sales and other miscellaneous charges to customers. Operating expenses consist of salaries and benefits, professional services, insurance, repairs and maintenance, supplies, utilities, equipment rental, depreciation, and other miscellaneous expenses. Operating loss is the difference between operating revenues and operating expenses. Net transfers in are the annual appropriations from other funds.

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Agenda Item #3.A.

City of Moorhead

City Council Meeting Meeting Minutes

July 10, 2017 at 5:30 PM City Hall Council Chambers

Pursuant to due call and notice thereof, a regular meeting of the City Council Meeting was held in the City Hall Council Chambers, on July 10, 2017, at 5:30 PM. Roll call of the members was made as follows: 1st Ward Council Member: Mari Dailey Present 1st Ward Council Member: Sara Watson Curry Present 2nd Ward Council Member: Melissa Fabian Present 2nd Ward Council Member: Heidi Durand Present Mayor: Del Rae Williams Present 3rd Ward Council Member: Brenda Elmer Present 3rd Ward Council Member: Joel Paulsen Absent 4th Ward Council Member: Steve Gehrtz Present 4th Ward Council Member: Chuck Hendrickson Present City Council Meeting

1. Call to Order and Roll Call

2. Pledge of Allegiance

3. Approve Minutes

Motion to Approve made by Steve Gehrtz and seconded by Chuck Hendrickson Motion to Approve Minutes

Motion Passed For: 7; Absent: 1 - Joel Paulsen

A. May 8, 2017 Council Meeting

B. June 12, 2017 Council Meeting

C. June 19, 2017 Council Workshop

D. June 26, 2017 Council Meeting

E. June 26, 2017 Committee of the Whole

4. Citizens Addressing the Council (Time Reserved: 15 Minutes)

Minutes: David Hunstad, Moorhead Business Association, provided a brief update on the 4th

of July fireworks display.

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Agenda Item #4.A.

Moorhead City Council Minutes Minutes from July 10, 2017 Page 2 of 7

5. Agenda Amendments

6. Consent Agenda

All items listed with an asterisk ( * ) are enacted by one motion.

Motion to Approve made by Heidi Durand and seconded by Brenda Elmer Motion to Approve the Consent Agenda

Motion Passed For: 7; Absent: 1 - Joel Paulsen

7. Mayor and Council Appointments

A. *Resolution to Approve Mayor & Council Appointment

Resolution 2017-0710-A Public Hearings (5:45 p.m.)

8. Public Hearing Regarding Request of WK Properties LLC for Property Tax Exemption for a Project Located at 2951 11 St S

Minutes: Public Hearing opened at 5:46 pm

Cindy Graffeo, Economic Development Director, provided a brief overview of the property tax exemption for WK Properties LLC.

Public Hearing closed at 5:48 pm

A. Resolution to Approve Property Tax Exemption for WK-KWJ Properties LLC (2951 11 St S)

Motion to Approve made by Melissa Fabian and seconded by Mari Dailey Motion to Approve Resolution to Approve Property Tax Exemption for WK-KWJ Properties LLC (2951 11 St S)

Motion Passed Resolution 2017-0710-1 For: 7; Absent: 1 - Joel Paulsen

9. Public Hearing Regarding the Request of Farmstead Care of Moorhead LP for Property

Tax Exemption for a Project Located at 2810-2854 34 Ave S


Cindy Graffeo, Economic Development Director, provided a brief overview of the property tax exemption for Farmstead Care of Moorhead LP.


A. Resolution to Approve Property Tax Exemption for Farmstead Care of Moorhead LP (2810-2854 34 Ave S)

Motion to Approve made by Brenda Elmer and seconded by Melissa Fabian Motion to Approve Resolution to Approve Property Tax Exemption for Farmstead Care of

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Agenda Item #4.A.


Moorhead LP (2810-2854 34 Ave S)


10. Public Hearing - To Consider Submittal of a Grant Application to the Federal Transit

Administration for 2017-18 Transit Operating, Planning and Capital Assistance


Lori Van Beek, Transit Manager, provided a brief overview of the grant application for Federal Transit Administration.


A. Resolution to Authorize Filing an Application with the Federal Transit Administration for Receipt of 2017-18 Federal Operating, Planning and Capital Assistance

Motion to Approve made by Sara Watson Curry and seconded by Mari Dailey Motion to Approve Resolution to Authorize Filing an Application with the Federal Transit Administration for Receipt of 2017-18 Federal Operating, Planning and Capital Assistance


Economic Development Planning and Neighborhood Services Department

11. *Consider Actions Related to Moorhead Human Rights Commission

A. *Second Reading of Ordinance 2017-07 Ordinance 2017-07

B. *Title and Summary of Ordinance 2017-07

Resolution 2017-0710-B

C. *Authorize Amendment to Rules of Practice and Policy of the MHRC Resolution 2017-0710-C

12. *Consider Actions Relating to Farmstead Second Addition

A. *Resolution to Approve Final Plat

Resolution 2017-0710-D

B. *Resolution to Approve Easement Vacations - Farmstead Addn and Village Green 6th Addn Resolution 2017-0710-E

C. *First Reading of Ordinance 2017-09: An Ordinance to Rezone Farmstead Second

Addition from RMD-1: Residential Moderate Density-1 to RHD-1: Residential High Density-1 Ordinance 2017-09

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Agenda Item #4.A.


D. *Resolution to Approve Developer's Agreement

Resolution 2017-0710-F

13. *Resolution to Approve Minor Subdivision - Parcel 21.033.2000 Resolution 2017-0710-G

14. *Resolution to Approve Revisions to Moorhead Municipal Airport Hangar Leases and

Associated Lease Rates Resolution 2017-0710-H

15. *Consider Actions Relating to Moorhead Airport Phase I Hangar Area Pavement

Rehabilitation

A. *Resolution to Award Bid Resolution 2017-0710-I

B. *Resolution to Approve Agreement with Mead & Hunt - Construction Services for

Hangar Pavement Resolution 2017-0710-J

C. *Resolution to Approve Grant Agreements

Resolution 2017-0710-K

16. *Consider Actions Relating to Moorhead Municipal Airport Phase II Apron Pavement Design

A. *Resolution to Approve Agreement with Mead and Hunt - Phase II Apron Design

and Bidding Resolution 2017-0710-L

B. *Resolution to Approve Grant Agreement

Resolution 2017-0710-M

17. *Resolution to Consider Minor Changes to MATBUS Route 2 Resolution 2017-0710-N

18. *Resolution Authorizing Advertising Trade Agreement for MATBUS Vehicle with MSUM

Dragon Athletics Resolution 2017-0710-O

19. *Resolution Approving Two Amendments to the RouteMatch Software License and

Services Agreement regarding the Annual Technical Support and Maintenance Fee and Automatic Passenger Counter Software for MATBUS Resolution 2017-0710-P

20. *Order to Repair or Remove Hazardous Property Condition: 2424 Country Club

Parkway Resolution 2017-0710-Q

21. *Order to Repair or Remove Hazardous Property Condition: 1209 Main Avenue

Resolution 2017-0710-R

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Agenda Item #4.A.


22. *Order to Repair or Remove Hazardous Property Condition: 1802 2 Avenue South Resolution 2017-0710-S

Engineering Department

23. *Resolution to Approve Various Actions for City-Wide Sidewalk and Miscellaneous Concrete Improvements. Eng. No. 17-A7-01

A. *Resolution to Order Engineer's Report

Resolution 2017-0710-T

B. *Resolution to Receive Engineer's Report, Order Plans & Specifications and Call for Public Hearing Resolution 2017-0710-U

C. *Resolution to Approve Plans & Specifications and Authorize Advertisement for

Bids Resolution 2017-0710-V

24. *Resolution to Receive Petition to Disconnect Water Service. Eng. No. 15-A2-2

A. *Resolution to Receive Petition

Resolution 2017-0710-W

25. *Resolution to Support Application to Access 2017 State Capital Budget (Bond) Funds for the SE Main Ave/20 St/21 St Railroad Grade Separation Project. Eng No. 02-2-2 Resolution 2017-0710-X

Fire Department

26. *Resolution to Approve Budget Adjustment #17-017 to Transfer Funds from 2017 CI Unallocated Account to 2017 CI Replace Turnout Gear Account for Purchase of Five Sets of Turnout Gear Resolution 2017-0710-Y

Public Works Department

27. *Consider Actions Relating to Ordinance 2017-08: An Ordinance to Amend City Code Section 3-4: Solid Waste Disposal Regulations

A. *Second Reading of Ordinance 2017-08

Ordinance 2017-08

B. *Title and Summary of Ordinance 2017-08 Resolution 2017-0710-Z

28. *Resolution to Advertise for Bid - Replace City Hall Roof

Resolution 2017-0710-AA Moorhead Public Service

29. *Resolution to Approve Updated Exhibits B and C to Electric Service Contract with Western Area Power Administration

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Agenda Item #4.A.


Resolution 2017-0710-AB Administration

30. *Resolution to Authorize Amendment No. 13 to a Memorandum of Understanding between the State of Minnesota and the City of Moorhead for the Border City Enterprise Zone Program Resolution 2017-0710-AC

31. Resolution Encouraging the People of the City of Moorhead to Attend the Grand

Opening of the Minnesota State Capitol

Motion to Approve made by Brenda Elmer and seconded by Mari Dailey Motion to Approve Resolution Encouraging the People of the City of Moorhead to Attend the Grand Opening of the Minnesota State Capitol

Motion Passed Resolution 2017-0710-AD For: 7; Absent: 1 - Joel Paulsen

Minutes: Christina Volkers, City Manager, provided a brief overview of the resolution.

32. Mayor and Council Reports

Minutes: Council Member Watson provided an update on the Passport Challenge through the

Parks and Recreation Department and the upcoming Arts & Culture events. Council Member Watson reminded residents about the single sort recycling.

Mayor Williams also discussed the upcoming Arts & Culture events.

Council Member Elmer reminded everyone that the Clay County Fair is this weekend.

Minutes: Mayor Williams recommended the City Council approve a letter to Governor Dayton

to request assistance and intervention involving the Department of Natural Resources.

Discussion occurred regarding changing the letter to "please help reconsider the decision to cease communications with us" to “please help reconsider the decision to cease communication with the working group”.

Motion to Approve made by Steve Gehrtz and seconded by Brenda Elmer Motion to Approve this Letter and modify the Phrase “Please help reconsider the decision to cease communications with us” to “Please help reconsider the decision to cease communications with the working group”.

Motion Passed For: 5; Against: 2 - Mari Dailey, Heidi Durand Absent: 1 - Joel Paulsen

33. City Manager Reports - Updates

Minutes: Christina Volkers, City Manager, announced that staff would provide highlights for

Nite to Unite. She also asked if City Council would amend the meeting schedule to include two City Council meetings per month with the second meeting to include Committee of the Whole topics under “Presentations”. City Council is in support of this starting in August.

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Agenda Item #4.A.


Meeting adjourned at 6:21 pm APPROVED BY: ATTEST: ______________________________________ ______________________________________ Del Rae Williams Michelle French Mayor City Clerk The proceedings of this meeting are digitally recorded and are available for public review. Respectfully submitted by: Michelle French, City Clerk

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Agenda Item #4.A.

City of Moorhead

City Council Meeting Meeting Minutes

July 17, 2017 at 7:00 PM City Hall Council Chambers

Pursuant to due call and notice thereof, a regular meeting of the City Council Meeting was held in the City Hall Council Chambers, on July 17, 2017, at 7:00 PM. Roll call of the members was made as follows: 1st Ward Council Member: Mari Dailey Absent 1st Ward Council Member: Sara Watson Curry Present 2nd Ward Council Member: Melissa Fabian Absent 2nd Ward Council Member: Heidi Durand Absent Mayor: Del Rae Williams Present 3rd Ward Council Member: Brenda Elmer Present 3rd Ward Council Member: Joel Paulsen Present 4th Ward Council Member: Steve Gehrtz Absent 4th Ward Council Member: Chuck Hendrickson Present Special City Council Meeting

1. Executive Session for the Purpose of Discussion of Land Sale Negotiations for a Redevelopment Project Located at the Southeast Corner of Eighth Street and Main Avenue - Parcel # 58.575.0670

Motion to Approve made by Chuck Hendrickson and seconded by Brenda Elmer Motion to Move Into Executive Session for the Purpose of Discussion of Land Sale Negotiations for a Redevelopment Project Located at the Southeast Corner of Eighth Street and Main Avenue - Parcel # 58.575.0670 at 7:03 pm

Motion Passed For: 4 - Sara Watson Curry, Brenda Elmer, Joel Paulsen, Chuck Hendrickson Absent: 4 - Mari Dailey, Melissa Fabian, Heidi Durand, Steve Gehrtz

Minutes: John Shockley, City Attorney, provided an overview of the purpose of the Executive

Session.

Executive Session ended at 8:10 pm. Meeting Adjourned at 8:11 pm. APPROVED BY: ATTEST: ______________________________________ ______________________________________ Del Rae Williams Michelle French Mayor City Clerk

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Agenda Item #4.B.


The proceedings of this meeting are digitally recorded and are available for public review. Respectfully submitted by: Michelle French, City Clerk

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Agenda Item #4.B.



SUBJECT: Public Hearing to Consider a Proposal to Establish a Redevelopment Tax Increment Financing District (Woodlawn Pointe Redevelopment Project) on the Site of the Former Moorhead Power Plant RECOMMENDATION: The Mayor and City Council are asked to hold a public hearing and consider a resolution to:

• Establish Woodlawn Pointe Redevelopment Project and Approve the Redevelopment Plan; and a

• Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) and Approve the Tax Increment Financing Plan

BACKGROUND / KEY POINTS: Council Members may recall various actions taken during the period of 2008-2013 in order to preserve the future ability to establish a Tax Increment Finance District (TIF) on the site of the demolished Moorhead Power Plant. Actions taken by City Council included two resolutions to establish Inter-fund Loans (September 22, 2008 and February 25, 2013) and a resolution to Preserve the Option to Establish a Tax Increment Finance District (November 12, 2013). By these actions, the City Council recognized the potential value of tax increment financing and passed the resolutions necessary to preserve this option should the decision be made in the future to seek redevelopment proposals on the 4 acres of developable area. The statutory deadline within which the EDA and City Council must establish a redevelopment TIF district is August 2017. Statutory requirements include the preparation of a Tax Increment Financing Plan, consideration by the Moorhead Planning Commission, and Notice to Clay County and ISD 152. The final step is City Council and Moorhead Economic Development Authority (EDA) approval subject to a Public Hearing. It is anticipated that the EDA will consider and approve the establishment of the TIF District on July 24, 2017. Establishing the TIF District, according to the timeline proposed, is a necessary step to preserve the right to use tax increment financing as an incentive tool to assist in a future redevelopment project on this site. Establishing the TIF District at this time does not, however, commit the EDA or City Council to undertake redevelopment or any specific type of redevelopment. The specific development expected to occur with the TIF District as outline in the TIF Plan (attached) contemplates this redevelopment area may be owner-occupied condos with some supporting neighborhood compatible retail. However, these redevelopment plans may be adjusted due to market and/or actual developer proposals. The development will not include dense retail or commercial space or industrial uses due to current planning guidelines and compatibility with the neighborhood. Approval of the TIF Plan will assure this financing mechanism is available to the City when and if redevelopment of the site occurs. There will be time, should the City Council wish, to solicit community input to determine what types of development may be best suited for this area. If and when a developer and a development project are selected pursuant to an RFP process, the

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Agenda Item #9.

http://www.cityofmoorhead.com/government/mayor-city-council/council-meetings




Mayor and Council Communication - July 24, 2017 Page 2 of 2

Agenda Item No. 9.

financial details of the development, including projected TIF streams will be known, thus allowing for an allocation of TIF revenues to assist in financing various TIF eligible costs. FINANCIAL CONSIDERATIONS: Legal and financial analysis documents drafted by Briggs & Morgan and Springsted to set up the district are estimated at $10,000 and are eligible for reimbursement through tax increments should development occur. VOTING REQUIREMENTS: Majority of Quorum Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Economic Development Prepared by: Cindy Graffeo, EDA Executive Director Amy Thorpe, Economic Development Program Administrator Attachments: Draft Resolution Redevelopment Plan Tax Increment Financing Plan

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Agenda Item #9.

Request for Council Action

AGENDA SECTION: Public Hearings

ORIGINATING DEPARTMENT: Economic Development

MEETING DATE: July 24, 2017

ITEM NO. 9.A.

ITEM DESCRIPTION: Resolution Establishing Woodlawn Pointe Redevelopment Project and Approving the Redevelopment Plan and Establishing the Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) and Approving the Tax Increment Financing Plan

PREPARED BY: Thorpe

DRAFT RESOLUTION

RESOLUTION ESTABLISHING WOODLAWN POINTE REDEVELOPMENT PROJECT AND APPROVING THE REDEVELOPMENT PLAN THEREFOR AND ESTABLISHING TAX

INCREMENT FINANCING (REDEVELOPMENT) DISTRICT (WOODLAWN POINTE) AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR

A. WHEREAS, it has been proposed that the Moorhead Economic Development Authority (the "Authority") establish its Redevelopment Project Area (the "Redevelopment Project"); approve and accept the proposed "Redevelopment Plan for Woodlawn Pointe Redevelopment Project Area", dated July 24, 2017, for the Redevelopment Project (the "Redevelopment Plan"); establish Tax Increment Financing (Redevelopment) District (Woodlawn Pointe)(the "TIF District") therein; and approve and accept the proposed "Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) Within Woodlawn Pointe Redevelopment Project Area", dated July 24, 2017, for the TIF District (the "TIF Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.048 through 469.068, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794 (the "Act"), Laws of Minnesota 1986, Chapter 341 and the Home Rule Charter of the City of Moorhead, Minnesota (the "City"); and

B. WHEREAS, the proposed Redevelopment Plan and the proposed TIF Plan (together, the "Plans") have been prepared and are presented for the Council's consideration; and

C. The City has performed all actions required by law to be performed prior to the establishment of the Redevelopment Project and the establishment of the TIF District therein, and the adoption of a proposed Redevelopment Plan and TIF Plan therefor, including, but not limited to, notification of Clay County and Independent School District No. 152 having taxing jurisdiction over the property to be included in the TIF District and the holding of a public hearing upon published and mailed notice as required by law; and

D. Certain written reports and inspection reports (collectively, the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City or Authority files and proceedings on the Plans. The Reports include the substandard building report of Hurst & Henrichs, Ltd. of the real property parcels, data, information and/or substantiation constituting or relating to the TIF District. Certain Reports also provide information related to the tests for establishing a redevelopment tax increment financing district under the Act and the basis for the other findings and determinations made in this Resolution. The Council hereby confirms, ratifies and adopts

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Agenda Item #9.A.

the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein.; and

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Moorhead as follows:

1. Redevelopment Plan Findings. The City finds, determines and declares that with respect to the Redevelopment Plan:

(a) The City hereby finds that the land in the Redevelopment Project would not be made available for redevelopment without the financial aid to be sought.

(b) The City further finds that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the redevelopment of the Redevelopment Project and adjacent areas by private enterprise;

(c) The City further finds that the Redevelopment Plan conforms to the general plan for the development or redevelopment of the City as a whole; and

(d) The City further finds that the Redevelopment Plan is intended and, in the judgment of the City, its effect will be, to promote the public purposes and accomplish the objectives specified in the Redevelopment Plan for the Redevelopment Project.

2. Redevelopment Project. There is hereby established in the City of Moorhead the Redevelopment Project, the initial boundaries of which are fixed and determined as described in the Redevelopment Plan.

3. Redevelopment Plan. The redevelopment plan for the Redevelopment Project, a copy of which is on file in the office of the City Manager, is adopted as the Redevelopment Plan for the Redevelopment Project.

4. TIF District. There is hereby established in the City of Moorhead within the Redevelopment Project, the TIF District, the initial boundaries of which are fixed and determined as described in the TIF Plan.

5. TIF Plan. The TIF Plan is adopted as the TIF Plan for the TIF District, and the City Council makes the following findings:

(a) the TIF District is a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subd. 10, the specific basis for such determination is that at least 70% of the area in the TIF District is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50% of the buildings, not including outbuildings, in the TIF District are structurally substandard to a degree requiring substantial renovation or clearance as set forth in the Reports. The City Council has had an opportunity to review the findings in the Reports regarding the condition of buildings, streets, utilities, parking lots, etc. and hereby ratifies the findings made therein.

(b) In the opinion of the City Council, the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. The reasons supporting this finding are that:

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Agenda Item #9.A.

(i) The estimated amount by which the market value of the site will increase without the use of tax increment financing is $0 and a small amount attributable to appreciation in land value;

(ii) The estimated increase in the market value that will result from the redevelopment to be assisted with tax increment financing is $41,469,022 (from $1,547,500 to $43,016,522); and

(iii) The present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan is $5,095,335.

(c) The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City of Moorhead as a whole.

The reasons for supporting this finding are that:

(i) the TIF District is properly zoned; and

(ii) The TIF Plan will generally complement and serve to implement policies adopted by the City.

(d) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City of Moorhead as a whole, for the development or redevelopment of the Redevelopment Project by private enterprise.

The reasons supporting this finding are that:

The development activities are necessary so that development and redevelopment by private enterprise can occur within the Redevelopment Project.

6. Public Purpose. The adoption of the Redevelopment Plan for the Redevelopment Project, and the adoption of the TIF Plan for the TIF District therein conform in all respects to the requirements of the Act and will help fulfill a need to redevelop an area of the State which is already built up to help prevent the emergence of blight, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose.

7. Certification. The Auditor of Clay County is requested to certify the original net tax capacity of the TIF District as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Manager is authorized and directed forthwith to transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution.

8. Filing. The City Manager is further authorized and directed to file a copy of the Redevelopment Plan and TIF Plan for the TIF District with the Commissioner of Revenue and the Office of the State Auditor.

9. Administration. The administration of the Redevelopment Project is assigned to the City Manager who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate.

PASSED: July 24, 2017 by the City Council of the City of Moorhead.

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Agenda Item #9.A.

8394607v1

EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF MOORHEAD, MINNESOTA

HELD: July 24, 2017

Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Moorhead, Clay County, Minnesota, was duly called and held on the 24th day of July, 2017, at 5:30 p.m.

The following members of the Council were present:

and the following were absent:

Councilmember ___________ introduced the following resolution and moved its adoption:

RESOLUTION __________

RESOLUTION ESTABLISHING WOODLAWN POINTE REDEVELOPMENT PROJECT AND APPROVING THE REDEVELOPMENT PLAN THEREFOR AND ESTABLISHING

TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT (WOODLAWN POINTE) AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR

A. WHEREAS, it has been proposed that the Moorhead Economic Development Authority (the "Authority") establish its Redevelopment Project Area (the "Redevelopment Project"); approve and accept the proposed "Redevelopment Plan for Woodlawn Pointe Redevelopment Project Area", dated July 24, 2017, for the Redevelopment Project (the "Redevelopment Plan"); establish Tax Increment Financing (Redevelopment) District (Woodlawn Pointe)(the "TIF District") therein; and approve and accept the proposed "Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) Within Woodlawn Pointe Redevelopment Project Area", dated July 24, 2017, for the TIF District (the "TIF Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.048 through 469.068, Sections 469.001 to 469.047 and Sections 469.174 to 469.1794 (the "Act"), Laws of Minnesota 1986, Chapter 341 and the Home Rule Charter of the City of Moorhead, Minnesota (the "City"); and

B. WHEREAS, the proposed Redevelopment Plan and the proposed TIF Plan (together, the "Plans") have been prepared and are presented for the Council's consideration; and

C. The City has performed all actions required by law to be performed prior to the establishment of the Redevelopment Project and the establishment of the TIF District therein, and the adoption of a proposed Redevelopment Plan and TIF Plan therefor, including, but not limited to, notification of Clay County and Independent School District No. 152 having taxing jurisdiction over the property to be included in the TIF District and the holding of a public hearing upon published and mailed notice as required by law; and

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Agenda Item #9.A.

8394607v1

2

D. Certain written reports and inspection reports (collectively, the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and submitted to the Council and/or made a part of the City or Authority files and proceedings on the Plans. The Reports include the substandard building report of Hurst & Henrichs, Ltd. of the real property parcels, data, information and/or substantiation constituting or relating to the TIF District. Certain Reports also provide information related to the tests for establishing a redevelopment tax increment financing district under the Act and the basis for the other findings and determinations made in this Resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein.; and

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Moorhead as follows:

1. Redevelopment Plan Findings. The City finds, determines and declares that with respect to the Redevelopment Plan:

(a) The City hereby finds that the land in the Redevelopment Project would not be made available for redevelopment without the financial aid to be sought.

(b) The City further finds that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the redevelopment of the Redevelopment Project and adjacent areas by private enterprise;

(c) The City further finds that the Redevelopment Plan conforms to the general plan for the development or redevelopment of the City as a whole; and

(d) The City further finds that the Redevelopment Plan is intended and, in the judgment of the City, its effect will be, to promote the public purposes and accomplish the objectives specified in the Redevelopment Plan for the Redevelopment Project.

2. Redevelopment Project. There is hereby established in the City of Moorhead the Redevelopment Project, the initial boundaries of which are fixed and determined as described in the Redevelopment Plan.

3. Redevelopment Plan. The redevelopment plan for the Redevelopment Project, a copy of which is on file in the office of the City Manager, is adopted as the Redevelopment Plan for the Redevelopment Project.

4. TIF District. There is hereby established in the City of Moorhead within the Redevelopment Project, the TIF District, the initial boundaries of which are fixed and determined as described in the TIF Plan.

5. TIF Plan. The TIF Plan is adopted as the TIF Plan for the TIF District, and the City Council makes the following findings:

(a) the TIF District is a redevelopment district as defined in Minnesota Statutes, Section 469.174, Subd. 10, the specific basis for such determination is that at least 70%

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Agenda Item #9.A.

8394607v1

3

of the area in the TIF District is occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50% of the buildings, not including outbuildings, in the TIF District are structurally substandard to a degree requiring substantial renovation or clearance as set forth in the Reports. The City Council has had an opportunity to review the findings in the Reports regarding the condition of buildings, streets, utilities, parking lots, etc. and hereby ratifies the findings made therein.

(b) In the opinion of the City Council, the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan. The reasons supporting this finding are that:

(i) The estimated amount by which the market value of the site will increase without the use of tax increment financing is $0 and a small amount attributable to appreciation in land value;

(ii) The estimated increase in the market value that will result from the redevelopment to be assisted with tax increment financing is $41,469,022 (from $1,547,500 to $43,016,522); and

(iii) The present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan is $5,095,335.

(c) The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City of Moorhead as a whole.

The reasons for supporting this finding are that:

(i) the TIF District is properly zoned; and

(ii) The TIF Plan will generally complement and serve to implement policies adopted by the City.

(d) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City of Moorhead as a whole, for the development or redevelopment of the Redevelopment Project by private enterprise.

The reasons supporting this finding are that:

The development activities are necessary so that development and redevelopment by private enterprise can occur within the Redevelopment Project.

6. Public Purpose. The adoption of the Redevelopment Plan for the Redevelopment Project, and the adoption of the TIF Plan for the TIF District therein conform in all respects to the requirements of the Act and will help fulfill a need to redevelop an area of the State which is already built up to help prevent the emergence of blight, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose.

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Agenda Item #9.A.

8394607v1

4

7. Certification. The Auditor of Clay County is requested to certify the original net tax capacity of the TIF District as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Manager is authorized and directed forthwith to transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution.

8. Filing. The City Manager is further authorized and directed to file a copy of the Redevelopment Plan and TIF Plan for the TIF District with the Commissioner of Revenue and the Office of the State Auditor.

9. Administration. The administration of the Redevelopment Project is assigned to the City Manager who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate.

The motion for the adoption of the foregoing resolution was duly seconded by councilmember __________ and upon vote being taken thereon, the following voted in favor thereof:

and the following voted against the same:

Whereupon said resolution was declared duly passed and adopted.

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Agenda Item #9.A.

8394607v1

5

STATE OF MINNESOTA COUNTY OF CLAY CITY OF MOORHEAD

I, the undersigned, being the duly qualified and acting Manager of the City of Moorhead, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the establishment of the Woodlawn Point Redevelopment Project Area and Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) therein in the City.

WITNESS my hand this ____ day of July, 2017.

_______________________________________ City Manager

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Agenda Item #9.A.

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Agenda Item

#9.A.

City of Moorhead, Minnesota Moorhead Economic Development Authority Redevelopment Plan for Woodlawn Pointe Redevelopment Project Area Draft Dated: June 23, 2017 Public Hearing Scheduled: July 24, 2017 Anticipated Approval: July 24, 2017 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM

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Agenda Item #9.A.

TABLE OF CONTENTS Section Page(s) A Definitions ........................................................................................................................ 1 B Statutory Authorization ..................................................................................................... 1 C Statement of Need and Public Purpose ........................................................................... 2 D Statement of Objectives ................................................................................................... 2 E Boundaries of the Project Area ......................................................................................... 3 F Development Activities ..................................................................................................... 3 G Property Acquisition Payment of Public Costs .................................................................. 4 H Payment of Public Costs .................................................................................................. 4 I Environmental Controls; Land Use Regulations ............................................................... 4 J Park and open Space to be Created ................................................................................ 5 K Property Acquisition and Proposed Reuse ....................................................................... 5 L Administration and Maintenance ....................................................................................... 5 M Relocation .................................................................................................................... 5 N Amendments ..................................................................................................................... 5 O Findings and Declaration .................................................................................................. 5 Map of the Project Area ...................................................................................................................... EXHIBIT I

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Agenda Item #9.A.

Moorhead Economic Development Authority, Minnesota

SPRINGSTED Page 1

Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: “Authority” means the Moorhead Economic Development Authority, established pursuant to the Enabling Act and City Resolution No. 86-677, as amended. "City" means the City of Moorhead, Minnesota, a municipal corporation and political subdivision of the State of Minnesota. "City Council" means the City Council of the City. "County" means Clay County, Minnesota. "Governing Body" means the Board of Commissioners of the Authority. "Enabling Act" means (1) Laws of Minnesota for 1986, Chapter 341, (2) the Minnesota Municipal Housing and Redevelopment Act, as previously codified in Minnesota Statutes, Sections 462.411 et seq., and as now codified in Minnesota Statutes, Sections 469.047, (3) the Minnesota Port Authorities Law, as previously codified in Minnesota Statutes, Chapter 458, and as now codified in Minnesota Statutes, Sections 469.048 through 469.068, and (4) the home rule charter of the City, all as they may be amended or supplemented. "Land Use Regulations" means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the use or development of land in the Project Area, including but not limited to environmental, platting, zoning and building code laws, regulations and ordinances. "Project Area" means the geographic area of Woodlawn Pointe Redevelopment Project Area. "Public Costs" means the costs of land acquisition, public and site improvements, repayment of debt service on tax increment bonds, and other eligible costs as set forth in the Redevelopment Plan and Tax Increment Financing Plan(s). "Redevelopment Plan" means the Redevelopment Plan for the Project Area. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive. "TIF District" or “District” means any tax increment financing district presently established or to be established in the future in the Project Area. "TIF Plan" means the respective tax increment financing plan for each TIF district located within the Project Area. Section B Statutory Authorization Pursuant to the Enabling Act, the City was granted the same powers as a port authority under Minnesota Statutes, Chapter 458, as well as the powers of a municipal housing and redevelopment authority established under Minnesota Statutes, Chapter 462, and the powers granted to a governmental subdivision under Minnesota Statutes, Chapter 472. Under the Enabling Act, the Authority will undertake activities in furtherance of the Redevelopment Project and the redevelopment of the Project Area.

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It is the intention of the Authority, notwithstanding the enumeration of specific goals and objectives in the Redevelopment Plan, that the Authority shall have and enjoy with respect to the Redevelopment Project the full range of powers and duties conferred upon the Authority pursuant to the Enabling Act, the Tax Increment Act, port authority laws, municipal housing and redevelopment laws, and such other legal authority as the Authority may have or enjoy from time to time. Section C Statement of Need and Public Purpose The Authority finds that there is a need for development within the City and the Project Area in order to provide employment and housing opportunities, to improve the local tax base, and to improve the general economy of the City and the State. The sound development of the economic security of the people in the City depends upon proper development of marginal property, as defined in Minnesota Statutes, Section 469.048, Subdivision 5, which includes property that meets any one of a number of conditions, including land within an industrial area not used for industry but needed for industrial development of the area, properties whose values are too low to pay for the public services required or rendered, and properties whose lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The Authority finds that in many cases such marginal property cannot be developed without public participation and assistance in various forms including property acquisition and/or write-down, proper planning, the financing of development costs associated with clearance, grading and soils correction, and the making of various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone, the Authority believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The Authority finds that in certain cases property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. The Authority also finds that the welfare of the City and the State requires the active promotion, attraction, encouragement, and development of economically sound industry and commerce through governmental action for the purpose of preventing the emergence of blighted and marginal lands and areas of chronic unemployment. It shall also be the policy of the Authority to facilitate and encourage such action as may be necessary to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment. Through the use of the powers conferred on the Authority pursuant to the Enabling Act, promoting economic development may prevent the occurrence of conditions requiring redevelopment and prevent the emergence of blight, marginal land, and substantial and persistent unemployment. The Redevelopment Plan shall also include the goals (1) of providing an impetus for residential development desirable or necessary to accommodate increased population within the City and (2) of helping to achieve affordable housing goals, including through payment or reimbursement of certain infrastructure or other costs of the housing developments. Section D Statement of Objectives The establishment of the Project Area in the City pursuant to the Enabling Act is necessary and in the best interests of the City and its residents and is necessary to give the Authority the ability to meet certain public purpose objectives that would not be obtainable in the foreseeable future without intervention by the Authority in the normal development process. The Authority seeks to achieve one or more of the following objectives with respect to the Project Area, as the Authority may deem appropriate and necessary.

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(1) To promote and secure the prompt development of property within the Project Area, such property which is not now in its most productive use, in a manner consistent with the Comprehensive Plan of the City, thus realizing Comprehensive Plan, land use, and tax base goals.

(2) To assist development in the Project Area through the acquisition or write-down of certain interests

in property which is not now in productive use or in its highest and best use, to make or defray the cost of soil corrections or site improvements on said property, and to construct or reimburse for the construction of public improvements and other facilities on or for the benefit of said property, thereby promoting and securing the development of other land within the Project Area.

(3) Through the implementation of this Redevelopment Plan, to provide an impetus for residential

development desirable or necessary to accommodate increased population within the City. (4) To secure the increase of residential, industrial and commercial property subject to taxation within

the Project Area and to promote tourism vase of the City and County. (5) To promote and secure additional employment opportunities within the City and to prevent the loss

of existing employment opportunities, thereby preventing the loss of valuable human resources. (6) To provide funding for an ongoing development strategy and to prioritize the use of available

resources. (7) To implement and revise from time to time, as may be deemed necessary or desirable, a

consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis.

(8) To employ any of the powers of the Authority for the benefit of the Project Area in such cases and

upon such terms as the Authority may deem appropriate. (9) To construct or acquire facilities deemed desirable for the development of the Project Area. (10) To prevent the emergence of, and promote redevelopment of, blighted or marginal property. (11) To mitigate competitive disadvantages and negative market trends that create disproportionate

residential development in eastern North Dakota that undermines sound development within the City.

Section E Boundaries of the Project Area The property within the City which constitutes the Project Area includes the property as illustrated on the map attached as Exhibit I. The Project Area shall also include all railroad rights of way within the Project Area and all adjacent roadways, rights-of-way and other areas wherein will be installed or upgraded the various public improvements necessary for and part of the overall project. The Authority finds that the Project Area, together with the objectives which the Authority seeks to accomplish or encourage with respect to such property, constitutes a “redevelopment project” and a “redevelopment plan” within the meaning of Minnesota Statutes, Section 469.002, Subdivisions 14 and 16; conforms to the definition of “marginal property” under Minnesota Statutes, Section 469.048, Subdivision 5; and constitutes an “industrial development district” under Minnesota Statutes, Section 469.048 to 469.068. The City reserves the right to expand the boundaries of the Project Area in the future.

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Section F Development Activities The Authority will perform or cause to be performed, to the extent permitted by law, all project activities pursuant to the Enabling Act, the Tax Increment Act and other applicable state laws, and in doing so anticipates that the following may, but are not required, to be undertaken by the Authority:

(1) The making of studies, planning, and other formal and informal activities relating to the Redevelopment Plan.

(2) The implementation and administration of the Redevelopment Plan. (3) The rezoning of land within the Project Area. (4) The acquisition of property, or interests in property, by purchase or condemnation, which

acquisition is consistent with the objectives of the Redevelopment Plan. (5) The preparation of property for use and development in accordance with applicable Land Use

Regulations and the Development Agreement, including demolition of structures, clearance of sites, placement of fill and grading.

(6) The resale of property to private parties. (7) The construction or reconstruction of improvements described in the TIF Plan. (8) The issuance of Tax Increment Bonds to finance the Public Costs of the Redevelopment Plan, and

the use of Tax Increments or other funds available to the City to pay or finance the Public Costs of the Redevelopment Plan incurred or to be incurred by it pursuant to the Development Agreement.

(9) The use of Tax Increments to pay debt service on the Tax Increment Bonds or otherwise pay or

reimburse with interest the Public Costs of the Redevelopment Plan. Section G Property Acquisition The Authority may acquire property, or appropriate interest therein, within the Project Area as it deems necessary or desirable to assist in the implementation of the Redevelopment Plan. Section H Payment of Public Costs It is anticipated that the Public Costs of the Redevelopment Plan will be paid primarily from Tax Increments or proceeds of Tax Increment Bonds. Such costs are identified in the TIF Plan(s) for the corresponding TIF District(s) located within the Project Area. The Authority reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such Public Costs including, but not limited to, special assessments, federal or state funds, and investment income. Section I Environmental Controls; Land Use Regulations All municipal actions, public improvements and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations.

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Section J Park and Open Space to be Created Park and open space created within the Project Area will be done so in accordance with the zoning and platting ordinances of the City. Section K Proposed Reuse of Property The Redevelopment Plan contemplates that the Authority may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property, the Governing Body will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the Authority to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the Authority is a party. Section L Administration and Maintenance Maintenance and operation of the Project Area will be the responsibility of the Community Services Director who shall serve as administrator of the Project Area. Each year the administrator will submit to the Authority the maintenance and operation budget for the following year. The administrator will administer the Project Area pursuant to the Enabling Act; provided, however, that such powers may only be exercised at the direction of the Authority. No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Authority. Section M Relocation Any person or business that is displaced as a result of the Redevelopment Plan will be relocated in accordance with Minnesota Statutes, Section 117.50 to 117.56. The Authority accepts responsibility for providing for relocation assistance when applicable. Section N Amendments The Authority reserves the right to alter and amend the Redevelopment Plan and the Tax Increment Financing Plan(s) subject to the provisions of state law regulating such action. The Authority specifically reserves the right to enlarge or reduce the size of the Project Area and the Tax Increment District, the Redevelopment Plan and the Public Costs of the Redevelopment Plan and the amount of Tax Increment Bonds to be issued to finance such cost by following the procedures specified in Minnesota Statutes, Section 469.175, Subdivision 4. Section O Findings and Declaration The Authority makes the following findings:

(1) The land in the Project Area would not be made available for redevelopment without the financial aid sought.

(2) The Redevelopment Plan for the Project Area in the City will afford maximum opportunity consistent with the needs of the locality as a whole, for the redevelopment of the area by private enterprise.

(3) The Redevelopment Plan conforms to the general plan for development of the City as a whole.

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Exhibit I

Map of Woodlawn Pointe Redevelopment Project Area

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City of Moorhead, Minnesota Moorhead Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing (Redevelopment) District (Woodlawn Pointe) Within Woodlawn Pointe Redevelopment Project Area Draft Dated: June 23, 2017 Public Hearing Scheduled: July 24, 2017 Anticipated Approval: July 24, 2017 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651) 223-3000 WWW.SPRINGSTED.COM

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TABLE OF CONTENTS A. Definitions .............................................................................................................................................................. 1 B. Statutory Authorization .......................................................................................................................................... 1 C. Statement of Need and Public Purpose ................................................................................................................. 1 D. Statement of Objectives ........................................................................................................................................ 1 E. Designation of Tax Increment Financing District as a Redevelopment District ...................................................... 2 F. Duration of the TIF District ..................................................................................................................................... 3 G. Property to be Included in the TIF District.............................................................................................................. 3 H. Property to be Acquired in the TIF District ............................................................................................................. 4 I. Specific Development Expected to Occur Within the TIF District .......................................................................... 4 J. Findings and Need for Tax Increment Financing ................................................................................................... 4 K. Estimated Public Costs .......................................................................................................................................... 6 L. Estimated Sources of Revenue ............................................................................................................................. 7 M. Estimated Amount of Bonded Indebtedness .......................................................................................................... 7 N. Original Net Tax Capacity ...................................................................................................................................... 7 O. Original Local Tax Rate ......................................................................................................................................... 8 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ..................................................... 8 Q. Use of Tax Increment ............................................................................................................................................ 9 R. Excess Tax Increment ......................................................................................................................................... 10 S. Tax Increment Pooling and the Five Year Rule ................................................................................................... 10 T. Limitation on Administrative Expenses ................................................................................................................ 10 U. Limitation on Property Not Subject to Improvements - Four Year Rule ............................................................... 11 V. Estimated Impact on Other Taxing Jurisdictions .................................................................................................. 11 W. Prior Planned Improvements ............................................................................................................................... 12 X. Development Agreements ................................................................................................................................... 12 Y. Assessment Agreements ..................................................................................................................................... 12 Z. Modifications of the Tax Increment Financing Plan ............................................................................................. 13 AA. Administration of the Tax Increment Financing Plan............................................................................................ 13 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements ..................................................................... 14

Map of the Tax Increment Financing District ........................................................................................... EXHIBIT I Assumptions Report ............................................................................................................................... EXHIBIT II Projected Tax Increment Report ............................................................................................................ EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report ........................................................................EXHIBIT IV Market Value Analysis Report ................................................................................................................EXHIBIT V Redevelopment TIF District Qualifications Report .................................................................................EXHIBIT VI

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TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT

Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: “Authority” means the Moorhead Economic Development Authority, established pursuant to the Enabling Act and City Resolution No. 86-677, as amended. "City" means the City of Moorhead, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the "Governing Body". "County" means Clay County, Minnesota. "Project Area" means the geographic area described in Exhibit I in which the Redevelopment Project is located. "Redevelopment Project" means Woodlawn Pointe Redevelopment Project in the City, which is described in the corresponding Redevelopment Plan. "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project. "School District" means Independent School District No. 152, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive. "TIF District" or “District” means Tax Increment Financing (Redevelopment) District (Woodlawn Pointe). "TIF Plan" means the tax increment financing plan for the TIF District. Section B Statutory Authorization See the Redevelopment Plan for the Project Area. Section C Statement of Need and Public Purpose See the Redevelopment Plan for the Project Area. Section D Statement of Objectives The objectives which the Authority seeks to achieve through the implementation of the TIF District are set out in the Redevelopment Plan.

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Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district:

(1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50% of the buildings, not including outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.

(2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail

storage facilities, or excessive or vacated railroad right-of-ways; or (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section

115C.02, subdivision 15, if the tank facilities:

(i) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used.

For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in (1) above. The supporting facts and documentation for this determination will be retained by the Authority for the life of the TIF District and are available to the public upon request. An analysis was completed to make this determination. The City passed a resolution on November 12, 2013 finding the multiple structures and buildings located at 519 Elm Street South to be structurally substandard, meeting the blight requirements following review by Hurst & Henrichs Ltd. Those buildings were later removed and demolished on August 14, 2014. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. Generally, a building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met:

(1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district;

(2) the demolition or removal of the substandard building was performed or financed by the Authority, or was performed by a developer under a development agreement with the Authority;

(3) the Authority found by resolution before such demolition or removal occurred that the building was structurally substandard and that the Authority intended to include the parcel in the TIF district, and

(4) the Authority notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district.

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In the case of (4) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the Authority may be included in the qualifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt by the Authority of the first tax increment. Modifications of this plan (see Section Z) shall not extend these limitations. Pursuant to Minnesota Statutes, Section 469.175, subd. 1(b), the Authority specifies 2021 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the Authority may collect increment from the district through December 31, 2046, and anticipates that the TIF District may be active for the maximum duration allowed (see Section P). However the Authority will decertify the TIF District as early as possible should the projected increment be received in a shorter time period than originally projected. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Section G Property to be Included in the TIF District The TIF District comprises of several parcels as described below. The property located at 519 Elm Street South contained multiple structures and buildings that were found to be substandard by resolution and later demolished. The total area of the TIF district also includes adjacent streets and right-of-way located within the Project Area. A map showing the location of the TIF District is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below:

Parcel Number Legal Description

58.848.0430 S 50' OF LOTS 43-54 & N75' OF 55-66 BLK 6 SubdivisionName WHITES 2ND ADD Lot 043 Block 006 SubdivisionCd 58848

58.848.0440 N 50' OF S 150' OF LOTS 55-60 BLK 6 SubdivisionName WHITES 2ND ADD Lot 055 Block 006 SubdivisionCd 58848

58.848.0450 S 100' OF LOTS 55-58 BLK 6 SubdivisionName WHITES 2ND ADD Lot 055 Block 006 SubdivisionCd 58848



58.848.0480 S 149.38' OF LOTS 63-64 BLK 6 SubdivisionName WHITES 2ND ADD Lot 063 Block 006 SubdivisionCd 58848

58.848.0490 S 149.09' OF LOTS 65-66 BLK 6 SubdivisionName WHITES 2ND ADD Lot 065 Block 006 SubdivisionCd 58848

58.848.0500 LOTS 67-69 BLK 6 SubdivisionName WHITES 2ND ADD Lot 067 Block 006

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SubdivisionCd 58848

58.565.0200 LOTS 1 THRU 32 SubdivisionName OAKGROVE ADD Lot 001 Block 003 SubdivisionCd 58565

58.565.0240 ALL OF BLOCK 4 (LIGHT PLANT) SubdivisionName OAKGROVE ADD Block 004 SubdivisionCd 58565

The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above, as illustrated in the boundary map included in Exhibit I. Section H Property to be Acquired in the TIF District The Authority does not anticipate acquiring property located within the TIF District; and reserves the right to purchase and/or sell property as related to redevelopment. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of property within the City that consists of blighted and underutilized properties with several structures and buildings found to have been substandard and previously demolished (following adoption of a resolution making that finding). The Authority is currently working on redevelopment plans that may include the construction of owner-occupied condos with some supporting neighborhood compatible retail. However, these redevelopment plans may change subject to market and/or actual developer proposals. The development is not expected to include dense retail or commercial space or industrial due to current planning guidelines. The Authority is analyzing potential development opportunities for the area within the TIF District. The Authority intends to use tax increment as a mechanism to facilitate the planned and anticipated redevelopment. The Authority has identified additional public improvement costs related to the redevelopment project including infrastructure improvements to allow better access to the project site. The Authority anticipates using tax increments to finance the identified redevelopment costs, including eligible related administrative expenses that are necessary for redevelopment to occur. Construction of the new development on the project site may start in 2018 or 2019 and completed in phases with first increment expected in taxes payable 2021. The project is expected to be fully constructed by December 31, 2020, and be 100% assessed and on the tax rolls as of January 2, 2021 for taxes payable 2022. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the Authority makes the following findings: (1) The TIF District qualifies as a redevelopment district;

The Authority inspected and evaluated the property within the proposed Tax Increment Financing District to be established by the Authority. The purpose of the evaluation was to determine if the proposed district met the statutory requirements for coverage and if the buildings met the qualifications required for a Redevelopment District. A final report has been prepared by Hurst & Henrichs Ltd for the Authority to retain on file in City offices for public inspection. The report contains the details of the findings summarized below regarding the substandard qualifications:

The TIF District consists of ten parcels, of which 5 are occupied with 90 percent of the area of the proposed TIF District occupied (exceeding the 70 percent coverage test);

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100 percent (1 of 1) of the buildings in the proposed TIF District contain code deficiencies exceeding the 15 percent threshold;

at least 50 percent of the buildings are structurally substandard to a degree requiring substantial renovation or clearance, because of defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, exceeding the more than 50 percent substandard test; and

The substandard building is reasonably distributed throughout the geographic area of the proposed TIF District.

(2) The proposed redevelopment, in the opinion of the City, would not reasonably be expected to occur

solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan.

Factual basis: Proposed development not expected to occur: The proposed project consists of the redevelopment of property within the City that consists of blighted properties found to be substandard and demolished to allow for redevelopment to occur. The Authority has identified significant and extraordinary costs including public improvements associated with redevelopment of the project site in conjunction with new development. The estimated total redevelopment costs, including the public improvements, for this property make the total cost of this effort significantly higher than costs reasonably incurred for similar developments on a clean site. The City’s finding that the proposed redevelopment would be unlikely to occur solely through private investment within the reasonably foreseeable future is based on an analysis of the proforma and other materials submitted by the developer. As necessary, the City anticipates analyzing future developer’s proformas in detail to determine the minimal amount of assistance needed to compensate developers for extraordinary and allowable costs. No higher market value expected: If the proposed redevelopment did not go forward, for the same reasons described above, no significant alternative redevelopment of the proposed TIF area would occur. The existing building was substandard and the properties are underutilized, making it highly unlikely that the improvements would be made on the property site without tax increment financing. The Authority has been pursuing development opportunities on the site without tax increment and no development has occurred. In short, there is no basis for expectation that the area would redevelop or be renovated in any significant way purely by private action without public subsidy. To summarize the basis for the City’s findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd. 3(d), the City makes the following determinations:

a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 to some modest amount based on small scale renovation or redevelopment that could be possible without assistance; any estimated values would be too speculative to ascertain. b. If the proposed development to be assisted with tax increment occurs in the TIF District, the total increase in market value would be approximately $41,469,022, including the value of the building (See Exhibit V).

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c. The present value of tax increments from the TIF District for the maximum duration of the district permitted by the TIF Plan is estimated to be $5,095,335 (See Exhibit V). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $36,374,687 (the amount in clause b less the amount in clause c) without tax increment assistance.

(3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a

whole, for development of the Project Area by private enterprise.

Factual basis: The anticipated redevelopment of the project site and any subsequent demolition, reconstruction, or renovation related to the project will remain consistent with the City’s design goals.

(4) The TIF Plan conforms to general plans for development of the City as a whole.

Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan, including multifamily condominium development with supporting retail, generally conforms to the City’s Comprehensive Plan.

Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District.

Land/Building acquisition 2,500,000 Site improvement/preparation costs 2,500,000 Utilities Other public improvements Interest expenses 4,468,372 Administrative expenses 500,000 Total 9,968,372

The Authority anticipates using tax increment to the extent available to finance redevelopment costs of the Redevelopment Project including primarily acquisition of blighted properties, site improvement/preparation costs (demolition), public improvements, related administrative expenses, and other TIF-eligible expenditures as deemed necessary and related to redevelopment of the project site. The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($9,968,372) is not increased. The Authority also reserves the right to fund any of the identified costs with any other legally available revenues, but anticipates that such costs will be primarily financed with tax increments.

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Section L Estimated Sources of Revenue

Tax Increment revenue 9,868,372 Interest on invested funds 100,000 Other Total 9,968,372

The Authority anticipates capturing the tax increments from the Redevelopment Project for financing of the identified redevelopment costs including a land write down, demolition costs and remediation of hazardous substances. As tax increments are collected from the TIF District in future years, a portion of these taxes will be used by the Authority to reimburse itself for public costs incurred (see Section K). The Authority also anticipates retaining any remaining increment to finance additional needed public improvement costs. The Authority may provide reimbursement financing to the extent revenues are available and needed. The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $9,868,372. The Authority currently plans to finance a land write down, demolition costs and remediation of hazardous substances through an interfund loan, but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Taxable Value of all property within the TIF District as of January 2, 2017, for taxes payable in 2018, is $1,547,500. Upon establishment of the district and subsequent reclassification of the property following sale to private ownership, the estimated original net tax capacity of the TIF District is estimated to be $15,475. This assumes the properties are reclassified from tax-exempt to taxable with residential homestead and commercial-industrial classifications. This value is also assumed to be the value of the properties, including land and building, as of the date the substandard buildings occupied the parcel. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District;

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(3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section O Original Local Tax Rate The County Auditor shall also certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original local tax rate of the TIF District. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2017 and payable in 2018 shall be the original tax capacity assuming the request for certification is made after June 30, 2017. The County Auditor shall certify the amount for taxes payable 2018 as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2016 and payable in 2017, is 119.343% as shown below. 2016/2017 Taxing Jurisdiction Local Tax Rate

City of Moorhead 40.235% Clay County 45.703% ISD #728 30.439% Other 2.966% Total 119.343% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the redevelopment will be completed by December 31, 2020, creating a total tax capacity for the TIF District of $234,050 as of January 2, 2021. The captured tax capacity as of that date is estimated to be $218,575 and the first full year of increment is projected to be in $260,854 in taxes payable 2022. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The estimates shown in this TIF plan assume that residential homestead class rates remain at 1% for value up to $500,000 and 1.25% for value above $500,000 (not expected to reach above $500,000 for this project) and commercial-industrial class rates remain at 1.50% for value up to $150,000 and 2% for value above $150,000 of the estimated taxable value, and assume 3% annual increases in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District.

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The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and County administrative

costs associated with the TIF District (see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated

public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to

finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S.

Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School

District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards involved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary.

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Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School

District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution.

Section S Tax Increment Pooling and the Five Year Rule At least 75% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after

certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably

expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund.

(3) used to make payments or reimbursements to a third party under binding contracts for activities

performed within the TIF District, which were entered into within five years after certification of the district; or

(4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years

from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 75% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The Authority does not anticipate that tax increments will be spent outside the TIF District (including allowable administrative expenses), but such expenditures are expressly authorized in this TIF Plan. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land;

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(2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project;

(3) relocation benefits paid to, or services provided for, persons residing or businesses located in the

project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued

pursuant to section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance

costs described in clause (1) to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the TIF District. Section U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below.

1. The total amount of tax increment that will be generated over the life of the TIF District is estimated to be $9,904,029.

2. To the extent the project in the TIF District generates any public cost impacts on city-provided services such

as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the district upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the TIF District. The Authority does not anticipate issuing general obligation tax increment bonds, but reserves the right to

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the use of internal financing, as necessary, to finance a portion of the project costs attributable to the TIF District.

3. The amount of tax increments over the life of the TIF District that would be attributable to school district

levies, assuming the school district’s share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $2,526,099.

4. The amount of tax increments over the life of the TIF District that would be attributable to county levies,

assuming the county’s share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $3,792,822.

5. No additional information has been requested by the county or school district that would enable it to

determine additional costs that will accrue to it due to the development proposed for the TIF District. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a redevelopment district, more than 25% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. The Authority may enter into an agreement for development in conjunction with the anticipated redevelopment project. Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Authority anticipates entering into an assessment agreement.

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Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs; or designation of property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of

those parcels in the TIF District's original net tax capacity, or the Authority agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated.

The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has

occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner.

(2) if the County Auditor receives the request for certification of a new TIF District, or for modification of

an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years.

(3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF

District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the

original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of

the TIF District;

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(c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District.

The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The Authority will file the TIF Plan, and any subsequent amendments thereto, with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The Authority will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6.

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Exhibit I

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MAP OF PROPOSED TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT (WOODLAWN POINTE)

AND WOODLAWN POINTE REDEVELOPMENT PROJECT AREA

(Boundaries are coterminous)

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Exhibit I

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Exhibit II

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Assumptions Report

City of Moorhead, MinnesotaTax Increment Financing (Redevelopment) District Woodlawn Pointe RedevelopmentDraft TIF Plan Exhbits: $22 million new taxable value

Type of Tax Increment Financing District RedevelopmentMaximum Duration of TIF District 25 years from 1st increment

Projected Certification Request Date 08/14/17Actual Certification Request DateDecertification Date 12/31/46 (26 Years of Increment)

2017/2018

Base Estimated Market Value $1,547,500Parcel IDs: 58.848.0430 8,600

58.848.0440 1,70058.848.0450 2,30058.848.0460 1,10058.848.0470 1,70058.848.0480 1,70058.848.0490 1,70058.848.0500 3,90058.565.0200 1,491,90058.565.0240 32,900

Original Net Tax Capacity * $15,475

* assumes all properties are replatted to one with residential homestead classification of 1%

Assessment/Collection Year

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Base Estimated Market Value $1,547,500 $1,547,500 $1,547,500 $1,547,500 $1,547,500Increase in Estimated Market Value $0 $0 $0 $13,452,500 $20,902,500

Total Estimated Market Value $1,547,500 $1,547,500 $1,547,500 $15,000,000 $22,450,000

Total Net Tax Capacity $15,475 $15,475 $15,475 $159,250 $234,050

City of Moorhead 40.235%Clay County 45.703%ISD #152 30.439%Other 2.966%

Local Tax Capacity Rate 119.343% Payable 2017

Frozen Tax Rate 119.343%

Administrative Retainage Percent (maximum = 10%) 10.00%Pooling Percent 40.00%

Bonds PayGO LoanBonds Dated NA Note Dated 02/01/18Bond Issue @ 0.00% (NIC) NA Note Rate 4.00%Eligible Project Costs NA Note Amount $2,475,000

Present Value Date & Rate 02/01/18 4.00% Present Value Amount 2,574,999

NotesProjections include existing properties as defined by City staff for base valueincludes possible construction of condos and commercial totaling approximately $22 million,values and development assumptions subject to change as actual construction is knownTotal value includes new building and land taxable valuesBase values are existing land and building values for parcels listed above from CountyAssumptions include new changes to class rates, tax rates and 3% annual mv inflator

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Exhibit III

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Projected Tax Increment Report


Less: Retained Times: Less: Annual Less: P.V.Annual Total Total Original Captured Tax Annual State Aud. Revenue Adm./Pooling Annual AnnualPeriod Estimated Net Tax Net Tax Net Tax Capacity Gross Tax Deduction Net of Retainage Net Net Rev. ToEnding Market Value (1) Capacity (2) Capacity (3) Capacity Rate (4) Increment 0.360% OSA Deduction 50.00% Revenue 02/01/18

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 4.00%

12/31/17 1,547,500 15,475 15,475 0 119.343% 0 0 0 0 0 012/31/18 1,547,500 15,475 15,475 0 119.343% 0 0 0 0 0 012/31/19 1,547,500 15,475 15,475 0 119.343% 0 0 0 0 0 012/31/20 1,547,500 15,475 15,475 0 119.343% 0 0 0 0 0 012/31/21 15,000,000 159,250 15,475 143,775 119.343% 171,586 618 170,968 85,484 85,484 * 75,00812/31/22 22,450,000 234,050 15,475 218,575 119.343% 260,854 939 259,915 129,958 129,957 109,64512/31/23 23,123,500 241,094 15,475 225,619 119.343% 269,261 969 268,292 134,146 134,146 108,82612/31/24 23,817,205 248,349 15,475 232,874 119.343% 277,919 1,001 276,918 138,459 138,459 108,00512/31/25 24,531,721 255,822 15,475 240,347 119.343% 286,838 1,033 285,805 142,903 142,902 107,18312/31/26 25,267,673 263,519 15,475 248,044 119.343% 296,024 1,066 294,958 147,479 147,479 106,36212/31/27 26,025,703 271,448 15,475 255,973 119.343% 305,486 1,100 304,386 152,193 152,193 105,54012/31/28 26,806,474 279,613 15,475 264,138 119.343% 315,231 1,135 314,096 157,048 157,048 104,71812/31/29 27,610,668 288,024 15,475 272,549 119.343% 325,269 1,171 324,098 162,049 162,049 103,89712/31/30 28,438,988 296,688 15,475 281,213 119.343% 335,608 1,208 334,400 167,200 167,200 103,07612/31/31 29,292,158 305,611 15,475 290,136 119.343% 346,257 1,247 345,010 172,505 172,505 102,25612/31/32 30,170,923 314,802 15,475 299,327 119.343% 357,226 1,286 355,940 177,970 177,970 101,43812/31/33 31,076,050 324,268 15,475 308,793 119.343% 368,523 1,327 367,196 183,598 183,598 100,62112/31/34 32,008,332 334,019 15,475 318,544 119.343% 380,160 1,369 378,791 189,396 189,395 99,80612/31/35 32,968,582 344,062 15,475 328,587 119.343% 392,146 1,412 390,734 195,367 195,367 98,99312/31/36 33,957,639 354,406 15,475 338,931 119.343% 404,491 1,456 403,035 201,518 201,517 98,18212/31/37 34,976,369 365,061 15,475 349,586 119.343% 417,206 1,502 415,704 207,852 207,852 97,37412/31/38 36,025,660 376,035 15,475 360,560 119.343% 430,304 1,549 428,755 214,378 214,377 96,56812/31/39 37,106,429 387,339 15,475 371,864 119.343% 443,794 1,598 442,196 221,098 221,098 95,76512/31/40 38,219,622 398,981 15,475 383,506 119.343% 457,688 1,648 456,040 228,020 228,020 94,96512/31/41 39,366,211 410,973 15,475 395,498 119.343% 472,000 1,699 470,301 235,151 235,150 94,16712/31/42 40,547,197 423,325 15,475 407,850 119.343% 486,741 1,752 484,989 242,495 242,494 93,37312/31/43 41,763,613 436,047 15,475 420,572 119.343% 501,924 1,807 500,117 250,059 250,058 92,58312/31/44 43,016,522 449,151 15,475 433,676 119.343% 517,562 1,863 515,699 257,850 257,849 91,79512/31/45 44,307,017 462,648 15,475 447,173 119.343% 533,670 1,921 531,749 265,875 265,874 91,01212/31/46 45,636,228 476,550 15,475 461,075 119.343% 550,261 1,981 548,280 274,140 274,140 93,841

$9,904,029 $35,657 $9,868,372 $4,934,191 $4,934,181 $2,574,999

(1) value based on estimate provided by City for possible development scenario comprising 61 condos and commercial retail space, subject to change(2) tax capacity based on residential homestead class rate of 1% and commercial-industrial class rate of 1.5% for value up to $150,000 and 2% for value above $150,000(3) original net tax capacity will be based on existing land and building value as attributable to this project and classified as residential homestead and commercial-industrial(4) combined local tax capacity rate of City, County and School District for payable 2017* election to delay receipt of first increment by up to 4 years from approval date of plan

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Exhibit IV

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Estimated Impact on Other Taxing Jurisdictions Report


WithoutProject or TIF District With Project and TIF District

Projected Hypothetical2016/2017 2016/2017 Retained New Hypothetical Hypothetical Tax GeneratedTaxable 2016/2017 Taxable Captured Taxable Adjusted Decrease In by Retained

Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local CapturedJurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*)

City of Moorhead 30,986,516 40.235% 30,986,516 $461,075 31,447,591 39.645% 0.590% 182,793

Clay County 63,520,593 45.703% 63,520,593 461,075 63,981,668 45.374% 0.329% 209,208

ISD #152 39,098,282 30.439% 39,098,282 461,075 39,559,357 30.085% 0.355% 138,713

Other (2) --- 2.966% --- 461,075 --- 2.966% --- ---

Totals 119.343% 118.069% 1.274%

* Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each ofthe taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above)which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax ratewould decrease by 1.274% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that theRetained Captured Net Tax Capacity of the TIF District would generate is also shown above.

Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions,then there is no impact on taxes levied or local tax rates.

(1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 2.48% of the total tax rate.

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Exhibit V

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Market Value Analysis Report


Tax Increment Financing (Redevelopment) District

Woodlawn Pointe Redevelopment

Draft TIF Plan Exhbits: $22 million new taxable value

Assumptions Present Value Date 02/01/18 P.V. Rate - Gross T.I. 4.00%

Increase in EMV With TIF District $41,469,022Less: P.V of Gross Tax Increment 5,094,335

Subtotal $36,374,687Less: Increase in EMV Without TIF 0

Difference $36,374,687

Annual PresentGross Tax Value @

Year Increment 4.00%

1 2021 171,586 148,6032 2022 260,854 217,2243 2023 269,261 215,6014 2024 277,919 213,9755 2025 286,838 212,3486 2026 296,024 210,7197 2027 305,486 209,0918 2028 315,231 207,4639 2029 325,269 205,836

10 2030 335,608 204,21011 2031 346,257 202,58612 2032 357,226 200,96513 2033 368,523 199,34714 2034 380,160 197,73215 2035 392,146 196,12216 2036 404,491 194,51517 2037 417,206 192,91318 2038 430,304 191,31719 2039 443,794 189,72620 2040 457,688 188,14021 2041 472,000 186,56022 2042 486,741 184,98723 2043 501,924 183,42124 2044 517,562 181,86125 2045 533,670 180,30926 2046 550,261 178,764

$9,904,029 $5,094,335

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Agenda Item #9.A.

Exhibit VI

SPRINGSTED Page 21

Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment

Financing District as a Redevelopment District

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Agenda Item #9.A.



SUBJECT: Resolution to Approve Engineering Services Agreement with SRF Consulting Group for Final Design (Phase 2) for the SE Main Ave/20 St/21 St Railroad Grade Separation Project. Eng. No. 02-2-2F RECOMMENDATION: The Mayor and City Council are asked to consider a resolution to approve an Engineering Services Agreement with SRF Consulting Group (SRF) for the above-referenced project. BACKGROUND / KEY POINTS: Plans & specifications for the SE Main Ave/20 St/21 St Railroad Grade Separation Project have been at the 95% completion stage since January 2009. Over the past several years, all work on the project has been focused on securing construction funding. The 2017 capital investment (bonding) bill enacted by the State Legislature and signed by the Governor includes $42.262M for construction of the project. To advance the project prior to the State funds becoming available, the Mayor and Council approved a limited scope Engineering Services Agreement with SRF for final design (phase 1) on June 12, 2017 focused on critical path items including, but not limited to, the negotiation/development of agreements with the railroads (BNSF and OTVRR), preliminary work necessary for the acquisition of temporary construction easements, and utility coordination. Staff has been working with MnDOT and MMB to complete actions necessary to access the State bond funds. At this time, two agreements with the State are anticipated. The first agreement will provide funds necessary to complete final design and advance the project through the receipt of bids and the second agreement will provide funds for construction. Staff anticipates that the first agreement will be available in late July or early August. On July 10, 2017, the Mayor and Council approved a resolution authorizing the Mayor and City Manager to execute the agreement with the State when it is received. After the agreement with the State becomes effective, the City will terminate work under the Engineering Services Agreement for final design (phase 1) with SRF and all future work will be completed under an Engineering Services Agreement for final design (phase 2). Staff requested that SRF prepare a final design (phase 2) proposal to complete all work through bidding. Staff has reviewed the proposed final design (phase 2) scope of work (attached) and associated Engineering Services Agreement (available in the Engineering Department) and recommends approval. FINANCIAL CONSIDERATIONS: SRF has prepared a proposed Engineering Services Agreement for final design (phase 2) with a total estimated cost of $783,750.32. All costs incurred under this agreement will be eligible for reimbursement with State bond funds. VOTING REQUIREMENTS: Three-Fourths of Council (6)

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Agenda Item #10.


Agenda Item No. 10.

Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Engineering Prepared by: Robert A. Zimmerman, City Engineer Attachments: Draft Resolution & Scope of Work

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Agenda Item #10.

SRF CONSULTING GROUP, INC.FARGO, ND 1 of 15

SE Main_20_21_RR Grade Separation_Scope-Fee_Master_170710.xlsx7/10/2017

SRF Consulting Group, Inc. Work Tasks and Person-Hour EstimatesClient: City of Moorhead

Project: SE Main Ave/20th Street/21st Street Railroad Grade Separation

7/10/2017

TASK NO. WORK TASK DESCRIPTION PRINCIPAL SR. ASSOC. ASSOCIATE SR. PROF. PROF. TECHNICAL CLERICAL TOTALS EST. FEE

TABLE OF CONTENTS

1.0 Project Management & Coordination (00270)2.0 Environmental Assessment (00060) - NOT REQUIRED3.0 Right of Way (00290)4.0 Utility Coordination (00270)5.0 Survey & Mapping (00220)6.0 Bridge Design (00020)7.0 Retaining Wall Design (00180)8.0 Pump Station Water Resources Design (00080)9.0 Roadway Design (00270)

10.0 Water Resources (00080)11.0 Traffic Signal Design (00230)12.0 Electrical Design (00050)13.0 Railroad Design (00270)14.0 Traffic Coordination (00240)

Professional services are to be provided to continue coordination with project stakeholders and railroads, review and update current right of way agreements, apply for permits, and to revisit/revise/update the 95% complete design and plans to ensure that the project meets the requirements of the current versions and updates to the MnDOT and City Specifications, MnDOT and AASHTO Design Standards, Railroad Standards, etc. SRF will work with the City and all stakeholders to prepare the plans and specifications for bid.

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1.0 Project Management & Coordination (00270)

1.1 General day-to-day project management, administration, and documentation (7 months)- (054)

84 0 0 0 0 0 0 84 $13,500.75

1.2 Work-planning schedule and coordination of tasks (7 months) - (054)

124 0 0 0 0 0 0 124 $19,929.68

1.3 Establish ongoing project coordination with relevant agencies. Coordinate project activities with the following as necessary - (054)

52 0 0 0 0 0 0 52 $8,357.61

- City of Moorhead- MnDOT- Buffalo River Watershed District- Minnesota Pollution Control Agency (MPCA)- Minnesota Department of Health (MDH)- Other Government Agencies- Private and Public Utilities- Otter Tail Valley Railroad- Burlington Northern Sante fe (BNSF) Railroad- Permitting Agencies

Other Agencies as Required1.4 Prepare for and attend meetings for the project including the

following: - (045)162 0 0 0 0 0 0 162 $26,037.17

- Kickoff Meeting with City of Moorhead & Agency Staff 12 0 0 0 0 0 0 12 $1,928.68- Internal Coordination meetings 40 0 0 0 0 0 0 40 $6,428.93- Bi-Weekly Coordination Meetings (assumes 12 meetings) 54 0 0 0 0 0 0 54 $8,679.06

- Railroad Coordination Meetings (assumes 4 meetings) 36 0 0 0 0 0 0 36 $5,786.04

- Public Information Meeting (Open House) (assumes 1 meeting)

20 0 0 0 0 0 0 20 $3,214.46

0 0 0 0 0 0 0 0 $0.00Prepare meeting minutes and distribute to attendees.

SUBTOTAL - TASK 1 584 0 0 0 0 0 0 584 $93,862.37

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2.0 Environmental Assessment (00060) - NOT REQUIRED

3.0 Right of Way (00290)

Assumptions:There are 15 parcels that will require the repurchase of temporary easements only. SRF will provide a data book and up to 15 MDA reports as well as negotiation activities. No Review Appraisals are assumed as acquisitions will likely be under $10,000. The propety owner along 1st Avenue may be acquired and relocation services required. It is assumed that BNSF will be responsible for relocation and acquisition as that property would be come BNSF property and involved in the closing of 2 RR Crossings.

3.1 Project Management/Coordination - (054) 37 0 0 0 0 0 0 37 $5,946.76- Initial Contact Letter- Monthly Project Status Worksheet- Just Compensation Memo

3.2 Investigation of Previous Right of Way Work - (061) 8 0 32 20 0 0 0 60 $7,035.43- City Acquisitions- New Utility Easements- New Property Owners- Expired Temporary Easements

3.3 Appraisal Services - (099) 0 0 0 0 295 0 0 295 $25,048.573.4 Negotiations Services - (0NG) 0 60 120 90 30 0 0 300 $34,934.56

- Field Title Meetings- Offer packages- all required documents for file- Offers - Good Faith Negotiations- Administrative Settlements- Mortgage Involvement (none assumed for this project as

only TE's being acquired)- Last Written Offers

3.5 Acquisition Descriptions - (061) 0 16 0 32 0 32 0 80 $9,073.28- Prepare Acquisition Descriptions- Prepare Acquisition Exhibits and/or update Parcel Sketches

- Stake Easements for Appraiser

SUBTOTAL - TASK 3 45 76 152 142 325 32 0 772 $82,038.60

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4.0 Utility Coordination (00270)

4.1 STEP 1: Gopher State OneCall, receive utility data, and survey data (079)

0 0 2 0 10 0 0 12 $1,079.57

- Verify utility owners and maps match previous owners and facilities

- Contact utilities for any new or planned facilities- Conduct a field review- Update files and plans with any new facilities or owners.

4.2 STEP 2: Submit a Utility Coordination Letter to each utility company of discovered utilities 2-3 weeks prior to Utility Information Meeting; attached will be preliminary utility plans. Follow QC checks on letter and attached materials. Gather potential easement information from utility owners. Utility plans and tabulations will be back checked. (079)

0 0 0 0 2 0 0 2 $169.82

4.3 STEP 3: Arrange and conduct a preliminary Utility Information Meeting for the purpose of informing utility owners about the project. Participants review the utility plans and discuss the utility information. Meeting minutes to be distributed. (045)

0 0 0 0 0 0 0 0 $0.00

4.4 STEP 4: Revise utility plans and tabulations based upon comments from MnDOT and utility owners. (079)

0 0 8 0 24 0 2 34 $3,099.23

- Submit a Utility Design Meeting Letter to each utility company of discovered utilities 2-3 weeks prior to Utility Design Meeting. Follow QC checks on letter and attached materials. Include information to utility owners regarding project changes and major updates to utility information. Utility tabulations and plans (if major changes) will be back checked.

4.5 STEP 5: Arrange and conduct a Final Utility Design Meeting focusing on finding solutions to utility conflicts. Meeting minutes to be distributed. (045)

2 0 4 0 0 0 0 6 $782.39

4.6 STEP 6: Conduct 90-Day GSOC prior to letting. Submit a Utility Verification and Information Letter to each identified utility owner, no more than 90 days prior to the submission of final plans. (079)

0 0 2 0 4 0 0 6 $570.11

SUBTOTAL - TASK 4 2 0 16 0 40 0 2 60 $5,701.13

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5.0 Survey & Mapping (00220)

Assumptions:- Survey will be performed under the direction of a Land

Surveyor licensed in the State of Minnesota. All mapping and surveys will be delivered in English units (Clay County Coordinates, NAD83 1996 adjustments for horizontal datum and NAVD 88 for vertical datum).

- Does not include hours for property boundary surveys or other surveys needed for preparation of Right of Way Plats or acquisitions. Right of way survey hours are included in the Right of Way Task

5.1 Perform field surveys as required to supplement/update the topographic base map and Digital Terrain Model (DTM) to reflect changes to the area within and adjacent to the project limits. - (026)

0 0 0 16 0 24 0 40 $4,124.22

5.2 Field survey of marked utilities that are identified as new or changed. - (026)

0 0 0 8 0 0 0 8 $824.84

5.3 Update the existing topography and utility CAD files, DTM model and existing surfaces as needed utilizing the supplement survey data. - (025)

0 4 0 2 0 8 0 14 $1,649.69

SUBTOTAL - TASK 5 0 4 0 26 0 32 0 62 $6,598.75

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6.0 Bridge Design (00020)

Assumptions:Assumes no design changes required due to 2016 revisions to the 2007 AREMA specifications.

6.1 Revise Division SB special provisions for MnDOT's 2016 Standard Specifications for Construction. Includes developing pile driving specifications for both ASD & LRFD Pile designs. Includes reviewing steel girder fabrication practices for heavily skewed structures and incorporating new procedures into the Division SB Special Provisions. - (070)

0 40 80 0 0 0 8 128 $15,963.15

6.2 Revise Bridge pay items and associated plan call-outs to match MnDOT's current Trns*port Item List - (032)

0 16 24 0 0 40 0 80 $9,364.40

6.3 Revise Bridge B-Details for new MnDOT standards - (032) 0 8 16 0 0 24 0 48 $5,555.57

6.4 Review 2007 & 2016 AREMA Specifications for changes to bridge design requirements. - (032)

0 32 0 0 0 16 0 48 $6,598.75

6.5 Revise plans to add a 'sacrificial beam' element to Bridge 14547 (sacrificial beam may not be required with BNSF Approval) - (032)

0 40 24 0 0 24 0 88 $11,426.51

SUBTOTAL - TASK 6 0 136 144 0 0 104 8 392 $48,908.39

7.0 Retaining Wall Design (00180)

Assumptions:- Assumes retaining walls A, B, E, F, K, L & M will be

redesigned using MnDOT's current standard wall designs. Alignments and profiles of walls will remain in current location.

7.1 Revise Retaining Wall pay items and associated plan call-outs to match MnDOT's current Trns*port Item List - (032)

0 16 24 0 0 40 0 80 $9,364.40

7.2 Revise Retaining Walls A, B, E, F, K, L & M for MnDOT's current LRFD design standards as required by MnDOT's Bridge Office. - (032)

0 16 40 0 120 160 0 336 $33,770.08

SUBTOTAL - TASK 7 0 32 64 0 120 200 0 416 $43,134.48

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8.0 Pump Station Water Resources Design (00080)

Assumptions:- Assumes the pump station will be updated to current codes

(IBC, AASHTO, OSHA, etc.). Anticipates pump sizes, station structure, and forcemain will need to change requiring the redesign of the pump station.

8.1 Review of criteria, station layout, standards, etc. with City. Includes one meeting with City for this and other review tasks below. (087)

0 20 0 20 40 0 0 80 $8,551.69

8.2 Revise lift station and force main per current standards and criteria. Includes updates to sluice gate, hatches, outlet, trash rack, valves, ventilation, and force main alignment based on most current practices and City standards, and available R/W. (032)

0 30 0 40 60 0 0 130 $13,858.59

8.3 Review, model, and update pump selection based on the 50-year, 24-hr Atlas 14 storm event and new pump model performance curves. (087))

0 24 0 80 40 0 0 144 $15,356.65

8.4 Review and update all internal plumbing, piping, valves, pipe supports, hoist, platforms, restraints per City and other pertinent standards, including what is required to accommodate the Atlas 14 50-year, 24-hr storm event. (087)

0 16 0 40 0 0 0 56 $6,598.75

8.5 Coordinate and resolve any new utility conflicts. (032) 0 2 2 12 16 0 0 32 $3,135.628.6 Revise construction plans per design updates and advance

to 100% signed plans. Includes one review cycle with City and State Aid. (032)

2 24 0 30 48 60 4 168 $17,667.43

8.7 Revise water resources portions of the special provisions (070)

0 16 0 16 20 0 0 52 $5,822.43

8.8 QA/QC 8 8 16 0 0 0 0 32 $4,366.828.9 Coordinate with electrical engineers to size a back-up power

generator(s) for this and the 20th St RR underpass lift station. Includes determining power and control requirements for 20th St. underpass and locating generator(s).

0 16 0 16 0 0 0 32 $4,124.22

SUBTOTAL - TASK 8 10 156 18 254 224 60 4 726 $79,482.19

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9.0 Roadway Design (00270)

Assumptions:- All design and plan items to be thoroughly checked and

verified.

9.1 Activate old version of CADD (MicroStation V7) and be sure all files, configurations, and CADD standards incorporated and operating.- (083)

0 0 0 0 0 40 0 40 $4,124.22

9.2 Revise design and plan to meet the current MnDOT Standard Specifications for Construction. - (032)

12 0 96 220 160 152 0 640 $64,932.19

- Revisions due to site conditions or recommendations since previous design include modifications to driveways, trails, pavement joints, 1st Avenue Cul-de-sac,

- Review site changes and update removals and existing sign removal plans. Includes a walkthrough of the entire project site for verifications.

- Including updating the roadway pay items and associated plan call-outs to match MnDOT's current Trns*port Item List

9.3 Investigate and revise watermain and sanitary design and plan to meet current City of Moorhead and MPS Specifications for watermain and sanitary sewer. This includes updating the utility pay items and associated plan call-outs. - (098)

4 0 32 16 124 40 8 224 $21,191.21

9.4 Update MnDOT and City Standard Plans and Plates (032) 0 0 4 0 4 6 0 14 $1,419.22

9.5 Update MnDOT Special Provisions to match current MnDOT Specifications and SP format. Update the City of Moorhead and MPS Standards. Update the Bidding Proposal using current City of Moorhead format. - (070)

18 0 24 0 0 0 8 50 $6,216.65

9.6 ADA Design and Plan redesign to incorporate current MnDOT Practices with ADA and Pedestrian Access Routes. Including providing addition of plans sheets and details, temporary PAR's during Construction and pedestrian pushbutton locations. Assumes coordination with MnDOT ADA Group and iterations based on comments. Analyze any crossing revisions at 20th Street and 4th Avenue.

6 0 120 80 0 32 0 238 $26,340.42

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9.7 Update design of entrance and area surrounding pump station

4 0 8 0 8 16 0 36 $3,893.75

9.8 Revise trail design based on comments from BNSF (trail within OTV Right of Way). Determine new trail alignment and revise plan.

6 0 8 0 16 4 0 34 $3,657.21

9.9 Staging and Traffic Control review and design/plan updates due to changes in surrounding area, updates to the traffic control signing standards, revisions to account for any design changes.- (074)

12 0 24 100 0 56 0 192 $20,778.79

9.10 Updates to cross-sections due to site changes, design revisions and retaining wall design updates. - (032)

8 0 0 0 32 80 0 120 $12,251.36

9.11 Update to Street Scaping, Trees, Planting Details to match current improvements in the City of Moorhead. (042)

4 0 16 0 24 0 0 44 $4,524.51

9.12 Cost Estimates - (021) 0 0 10 48 56 0 0 114 $10,856.409.13 QA/QC - (057) 24 0 32 0 0 0 0 56 $7,544.899.14 Permits (BRRWD, MPCA, MNDOT, MDOH and others as

necessary) - (052)2 0 8 0 0 0 0 10 $1,243.33

9.15 Construction/Bidding Administration - (085) 14 0 8 0 4 4 0 30 $3,924.07- Assist City during bidding process, including answering

Contractor questions, Addendums, and Attending the Bid Opening

SUBTOTAL - TASK 9 114 0 390 464 428 430 16 1842 $192,898.22

10.0 Water Resources (00080)

10.1 Coordinate, prepare for and attend 1 meeting with City staff to discuss the proposed stormwater management plan. Prepare and distribute meeting minutes. - (045)

0 10 10 0 0 0 1 21 $2,768.69

10.2 Prepare proposed storm sewer layout with numbered structures: (087)

0 1 12 0 24 8 0 45 $4,400.18

- Perform spread calculations to determine catch basin spacing to meet State Aid requirements.

- Delineate proposed condition drainage boundaries and perform necessary hydrologic calculations.

10.3 Update proposed storm sewer system design to Atlas 14. Check that low points drain according to State Aid standards. Pipe design shall include pipe size, material and class or gage, slope, elevations, and length. (087)

0 1 8 0 30 0 0 39 $3,623.85

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10.4 Update final plans: (032) 1 4 16 0 64 54 0 139 $13,625.09- Water Resources notes.- SWPPP.- Special drainage details.- Drainage plans with proposed storm sewer and culvert

layout, numbered structures, pond locations, flow arrows, and high/low point information.

- Pipe profiles with pipe size, material and class or gage, slope, elevations, length, and showing underground utilities crossings.

- Drainage tabulation with station/offset of structures, MH diameter, casting assemblies, pipe size/material/length, riprap and sod quantities at pipe aprons, and special notes.

- BMP design modifications/additions (if required by task 10.9)

10.5 Prepare final special provisions, quantities, and cost estimate for water resources-related components. (070)

1 2 12 0 12 0 4 31 $3,150.78

10.6 Compile drainage computations, drainage area map, Hydraulic Flood Analyses, and risk assessments for State Aid submittal. (036)

0 2 2 0 8 8 0 20 $2,043.91

10.7 Perform QA/QC according to the project's QMP for the final submittal. (057)

1 2 8 0 8 0 0 19 $2,071.21

10.8 Update temporary drainage. (032) 0 2 2 0 8 0 0 12 $1,219.0710.9 Complete NPDES and BRRWD Permit application submittals.

Assumes that NPDES permit stormwater treatment BMPs are infeasible for this site. Sump manholes or alternative BMP locations in lieu of this location will be investigated. Coordinate with City for in evaluation and any potential mitigation sites as needed. (052)

0 1 2 0 24 0 0 27 $2,422.98

10.10 State Aid and City Review coordination and revisions to plans and specs (032)

0 2 6 0 10 4 0 22 $2,262.26

SUBTOTAL - TASK 10 3 27 78 0 188 74 5 375 $37,588.01

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11.0 Traffic Signal Design (00230)

Assumptions:- Project had signed SJRs from 2007 for SE Main Ave/20th

St/21st St and for 4th Ave/21st St. Assumes these reports are outdated and would need to be redone and reapproved with updated volumes. Assumes an SJR will suffice for approval and that more comprehensive ICE reports will not be required.

- All three (3) permanent signals will require updates for ADA/APS considerations, FYA operations, converting all #12 wire to #14 wire, changes to Mast Arm Signing standards, and changes to wiring diagram standards. Assumes there will be no major changes to the roadway geometrics from the previous submission.

- Both (2) temporary signals will require updates for ADA/APS considerations, FYA operations, possible change from microwave/sonic detection, and changes to wiring diagram standards. Assumes there will be no major changes to staging from the previous submission and that temporary signals are still needed at the two locations shown in the 95% plans.

- Interconnect will need to be changed from hardwire to fiber interconnect. Considerations for other projects that have happened in the area will also need to be incorporated in the design.

- Special provisions would need to be redeveloped from scratch due to numerous standard and specification changes.

- Estimates would need to be completely redeveloped due to cost and pay item changes.

- Signal Timing is assumed to be completed by the City of Moorhead and is not included.

11.1 Signal Justification Reports (2) - (059) 0 4 0 45 0 8 0 57 $6,083.2211.2 Permanent Signal System Designs (3) - 077) 6 24 0 0 0 105 0 135 $15,502.2111.3 Construction Temporary Signal System Designs (2) - (166) 2 12 0 0 0 60 0 74 $8,363.67

11.4 Interconnect System Design - (040) 0 8 0 0 0 40 0 48 $5,361.4811.5 Division SS Special Provisions - (070) 0 6 0 18 0 0 0 24 $2,783.8511.6 Engineer's Estimate for Traffic Signals (021) 0 6 0 16 0 0 0 22 $2,577.64

SUBTOTAL - TASK 11 8 60 0 79 0 213 0 360 $40,672.08

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12.0 Electrical Design (00050)

12.1 Review of requirements and existing plans - (029) 0 6 0 4 0 6 0 16 $1,959.0012.2 Pump House Electrical - (029) 0 32 0 64 0 84 0 180 $20,208.67

- Redundant service feeder- TVSS/MCC/VFD- PLC Design- Pump House electrical/lighting- Construction documents- Specifications & cost estimates

12.3 Roadway Lighting - (043) 0 8 0 16 0 50 0 74 $8,042.23- Lighting design & detail construction documents- Specifications & cost estimates

12.4 Construction Administration during bidding - (085) 0 4 0 4 0 0 0 8 $1,031.0512.5 Project Management - (054) 0 10 0 0 0 0 0 10 $1,546.5812.6 Pump Station Backup Generator. . (029) 0 48 0 104 0 240 0 392 $42,891.88

- Analyze the use of generators to operate both the proposed SE Main/20th/21st pump station and the existing pump station near the 20th Street RR Underpass. Include analysis if one large generator to operate both as well as seperate generators for each pump station.

- Determine the power supply to each pump and backup generator connection would be required.

- Incorporate the preferred design into the plans.

SUBTOTAL - TASK 12 0 108 0 192 0 380 0 680 $75,679.42

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13.0 Railroad Design (00270)

13.1 Review design of WYE Connection, shoofly, and staging of RR construction to be sure it is designed to current Railroad Design Standards.- (032)

26 0 0 0 0 0 0 26 $4,178.80

13.2 Update the design and plans for the WYE Connection, Shoofly, and staging as needed. (032)

16 0 16 0 12 0 0 44 $5,434.27

13.3 Assist the City in obtaining RR Agreements and Permits - (052)

90 0 16 0 0 0 0 106 $16,308.86

13.4 Coordination to include the installation of gates and signals at the Oakway Crossing just south of the project limits. This work would be perfomed by the Railroad. These crossing improvements were part of a previous Quiet Zone Study. (032)

6 4 0 0 0 0 0 10 $1,582.97

SUBTOTAL - TASK 13 138 4 32 0 12 0 0 186 $27,504.90

14.0 Traffic Coordination (00240)

14.1 Review previous traffic analysis and coordinate any feature (i.e. turn lane lengths) modifications that arise during the the desing development.

0 4 0 0 12 0 0 16 $1,637.56

SUBTOTAL - TASK 14 0 4 0 0 12 0 0 16 $1,637.56

15.0 Pump Station Structural Design (00110)Assumptions:

- Assumes the pump station will be updated to current codes (IBC, AASHTO, OSHA, etc.). Anticipates pump sizes, station structure, and forcemain will need to change requiring the redesign of the pump station.

15.1 Review pump station design for compliance with current code and resize for new pumps (IBC, AASHTO, OSHA, etc.) requirements. Analyze and provide cost comparison to upsize the forcemain in lieu of increasing the pump size. - (032)

16 80 0 0 150 80 0 326 $35,929.23

SUBTOTAL - TASK 15 16 80 0 0 150 80 0 326 $35,929.23

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TOTAL ESTIMATED PERSON-HOURS 920 687 894 1157 1499 1605 35 6797

AVERAGE HOURLY PAYROLL RATES $53.00 $51.00 $38.00 $34.00 $28.00 $34.00 $23.00

OVERALL ESTIMATED DIRECT LABOR $48,760.00 $35,037.00 $33,972.00 $39,338.00 $41,972.00 $54,570.00 $805.00 $254,454.00

OVERALL ESTIMATED OVERHEAD COST 166.01% $422,419.09

OVERALL ESTIMATED LABOR AND OVERHEAD $129,706.48 $93,201.92 $90,368.92 $104,643.01 $111,649.72 $145,161.66 $2,141.38 $676,873.09

FIXED FEE 14.0% $94,762.23

TOTALS for CONTRACTOR $147,865.38 $106,250.19 $103,020.57 $119,293.04 $127,280.68 $165,484.29 $2,441.17 $771,635.32

ESTIMATED DIRECT NON-SALARY EXPENSES $12,115.00

TOTAL ESTIMATED FEE $783,750.32=============

ESTIMATE OF DIRECT NON-SALARY EXPENSES:

TRN Abstract 15 Each $100.00 each $1,500.00MILEAGE: (Allowable IRS rate for business) Personal Vehicles 5000 Miles @ $0.54 per mile $2,700.00

REPRODUCTION: Reports (draft and final) 5 Each $25.00 each $125.0011x17 Plan Copies 1000 Each $0.10 each $100.00

PRINTING: Color Copies (11 x 17) 100 Each $0.20 per sheet $20.00Color Copies (8.5 x 11) 100 $0.20 per sheet $20.00

COMMUNICATION: Mailings/Deliveries/Postage 15 Each $10.00 per letter $150.00

SUBCONSULTANTS:Michael J. Burns Architects $7,500.00

(including fliers, newsletters and maps)ESTIMATED DIRECT NON-SALARY EXPENSES $12,115.00

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COST PER TASK

1.0 Project Management & Coordination (00270) 93,862.37 0.00 0.00 0.00 0.00 0.00 0.00 93,862.37

2.0 Environmental Assessment (00060) - NOT REQUIRED 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3.0 Right of Way (00290) 7,232.55 11,754.02 17,515.80 14,640.98 27,595.88 3,299.38 0.00 82,038.60

4.0 Utility Coordination (00270) 321.45 0.00 1,843.77 0.00 3,396.42 0.00 139.50 5,701.13

5.0 Survey & Mapping (00220) 0.00 618.63 0.00 2,680.74 0.00 3,299.38 0.00 6,598.75

6.0 Bridge Design (00020) 0.00 21,033.52 16,593.92 0.00 0.00 10,722.97 557.98 48,908.39

7.0 Retaining Wall Design (00180) 0.00 4,949.06 7,375.07 0.00 10,189.25 20,621.10 0.00 43,134.48

8.0 Pump Station Water Resources Design (00080) 1,607.23 24,126.68 2,074.24 26,188.79 19,019.93 6,186.33 278.99 79,482.19

9.0 Roadway Design (00270) 18,322.45 0.00 44,941.86 47,840.94 36,341.65 44,335.35 1,115.97 192,898.22

10.0 Water Resources (00080) 482.17 4,175.77 8,988.37 0.00 15,963.15 7,629.81 348.74 37,588.01

11.0 Traffic Signal Design (00230) 1,285.79 9,279.49 0.00 8,145.33 0.00 21,961.47 0.00 40,672.08

12.0 Electrical Design (00050) 0.00 16,703.09 0.00 19,796.25 0.00 39,180.08 0.00 75,679.42

13.0 Railroad Design (00270) 22,179.81 618.63 3,687.54 0.00 1,018.92 0.00 0.00 27,504.90

14.0 Traffic Coordination (00240) 0.00 618.63 0.00 0.00 1,018.92 0.00 0.00 1,637.56

ESTIMATED DIRECT NON-SALARY EXPENSES $12,115.00

TOTAL ESTIMATED FEE 147,865.38 106,250.19 103,020.57 119,293.04 127,280.68 165,484.29 2,441.17 $783,750.320.00 0.00 0.00 0.00 0.00 0.00 0.00 =============

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Agenda Item

#10.


AGENDA SECTION: Engineering Department

ORIGINATING DEPARTMENT: Engineering


ITEM NO. 10.A.

ITEM DESCRIPTION: Resolution to Approve Engineering Services Agreement

PREPARED BY: Zimmerman

DRAFT RESOLUTION

WHEREAS, plans & specifications for the SE Main Ave/20 St/21 St Railroad Grade Separation Project (Eng. No. 02-2-2F) are 95% complete; and

WHEREAS, SRF Consulting Group has prepared a proposed Engineering Services

Agreement to complete final design (phase 2) with a total estimated cost of $783,750.32; and WHEREAS, all costs incurred will be eligible for reimbursement with State bond funds;

and

WHEREAS, City staff has reviewed the proposed Engineering Services Agreement, which is available in the Engineering Department, and recommends approval.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Moorhead, Minnesota that the proposed Engineering Services Agreement with SRF Consulting Group is approved and the Mayor and City Manager are authorized to execute said agreement.


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Agenda Item #10.A.



SUBJECT: *Resolution to Approve Grant Submittal: Midtown Trail - Woodlawn Park to Gooseberry Mound Park (River Corridor Trail) RECOMMENDATION: The Mayor and City Council are asked to consider a resolution to approve submission of a grant application for a trail segment along the Moorhead River Corridor Trail – Woodlawn Park to Gooseberry Mound Park.

BACKGROUND / KEY POINTS: In May 2014, the City Council approved the Moorhead River Corridor Plan which outlines a vision for the Moorhead riverfront, including parks and trails. Since then, there have been numerous projects that have been completed or are underway along the river corridor and additional projects which have been slated for funding. A list of current and upcoming river corridor projects is available at – www.cityofmoorhead.com/river The resolution before Council tonight is to submit a grant application to the Greater MN Regional Parks and Trails Commission for a trail segment connecting Woodlawn Park and Gooseberry Mound Park. The River Corridor Trail received a ‘regionally significant’ designation from GMRPTC on August 2, 2016, making it eligible for a funding application request. The grant funding application is due July 31, 2017. FINANCIAL CONSIDERATIONS: Although final alignment and costs are still being finalized, the estimated budget is noted below. The local share cost for items such as the on road striping, trash containers and benches is estimated at $35,750 and is suggested to be financed through the River Corridor Capital Improvement Fund. The design and construction administration will be completed by the Engineering Department.

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Agenda Item #11.

http://www.cityofmoorhead.com/river


Agenda Item No. 11.

VOTING REQUIREMENTS: Majority of Council (5) Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Parks and Recreation, Planning Prepared by: Holly Heitkamp, Parks and Recreation Director Kristie Leshovsky, City Planner and Zoning Administrator Attachments: Draft Resolution Trail Map

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Agenda Item #11.


AGENDA SECTION: Parks and Recreation Department

ORIGINATING DEPARTMENT: Parks and Recreation


ITEM NO. 11.

ITEM DESCRIPTION: *Resolution to Approve Grant Submittal: Midtown Trail - Woodlawn Park to Gooseberry Mound Park (River Corridor Trail)

PREPARED BY: Leshovsky

DRAFT RESOLUTION

WHEREAS, the City of Moorhead has the legal public authority to sponsor a grant funding request associated with the Moorhead River Corridor Trail: Midtown Trail – a segment connecting Woodlawn Park and Gooseberry Mound Park (PROJECT), which has been previously designated by the Greater Minnesota Regional Park and Trails Commission (COMMISSION) as a regional park or trail; and

WHEREAS, that as we are fully aware of the information provided in the funding request,

including any non-state match and other long-term commitments (as defined in the funding request), related master plan and any supporting information as submitted; and

WHEREAS, that, if selected for funding by the COMMISSION, the City of Moorhead

shall act as legal sponsor for the PROJECT contained in the Department of Natural Resources (DNR) Parks & Trails Legacy Grant Application (STATE’S GRANT APPLICATION) and that the Mayor and City Manager or applicable representative are hereby authorized to apply to the Department of Natural Resources for funding of this project on behalf of the applicant; and

WHEREAS, that the APPLICANT has not incurred any development costs and has not

entered into a written purchase agreement to acquire the property described in the funding request and therefore, also in the STATE’S GRANT APPLICATION; and

WHEREAS, that the APPLICANT has or will acquire fee title or permanent easement

over the land described in the funding request and therefore, also in the STATE’S GRANT APPLICATION for regional parks and has or will acquire fee title, perpetual easement or a minimum of a 20 year lease over the land described in the funding request and therefore, also in the STATE’S GRANT APPLICATION for regional trails.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead,

Minnesota that, upon approval of its application by the State, the applicant may enter into an agreement with the State of Minnesota for the above-referenced project, and that the applicant certifies that it will comply with all applicable laws and regulations as stated in the grant contract including committing to maintain the trail for a period of no less than 20 years and providing a perpetual easement for recreational trail purposes on all lands acquired for trail use.

BE IT FURTHER RESOLVED by the City Council of the City of Moorhead, Minnesota

that the Mayor and City Manager or applicable representative are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the City of Moorhead.


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Agenda Item #11.

FloatingBridge

Gooseberry/Lindenwood Bridge

MidtownDam

181/2

S TS

14 S

T S

11 ST

N

14 S

T N

8 ST N

I 94

5 AVE S

CENTER AVE

20 AVE S

12 AVE S

20 S

T S

5 ST S

4 AVE S

MAIN AVE

1 AVE N

10 S

T S

7 AVE S

4STS

2 ST S

3STS

6 AVE S

13 S

T S

2 AVE S

11 ST

S

16 S

T S17

ST S

28 AVE SEXIT 1

BROOKDALE

RD

12 S

T S

8 AVE S

15 S

T S

18ST

S19

ST S

24 AVE S

191/2

STS

22 AVE S

9 AVE S

2 AVE N

11 AVE S

16 AVE S

26 AVE S

14 AVE S

18 AVE S

1 ST S 10 AVE S

23 AVE S

25 AVE S

ELM

ST S

29 AVE SBROOK AVE

27 AVE S

RAMP EXIT 1A

CE NTERMALL AVE

HOLIDAY DRRIVERSHO REDR

S

21ST

S

R IVER DR S

Minnesota State CommunityTechnical College

ConcordiaCollege

Minnesota StateUniversity Moorhead

GooseberryMound Park

WoodlawnPark

AlmPark13 AVE S

SOUTH RIVER RD S

21 AVE S

17 AVE S

4ST

N

19 AVE S

ELMWOOD AVE S

9 ST S

LINDE

NWOOD DR S

3 AVE S

15 AVE S

3 ST N5 S

T N1 AVE S

8 ST S

7 ST S

2 ST N

6 ST S

ROGERMARIS DR S

Red River of the North

LegendFunded and Proposed Trails

Midtown Trail - SeparatedBikewayMidtown Trail - On-StreetMidtown Trail - 8' SidewalkDowntown Link Trail - SeparatedBikeway, GMRPTC 2018-19Blue Goose Separated Bikeway,TAP 2018-19

Existing Trail NetworkSeparated BikewayWide SidewalkOn-Street Bike Facility

BuildingsGovernmentMedical CenterEducationCommercialReligiousRecreationCultural LocationHotel

HWY 7

5

HWY 10 / 75Moorhead

Center Mall

Fargo, ND

Moorhead, MN

§̈¦94

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Agenda Item

#11.

§̈¦94

£¤10

£¤75

£¤75

I94

UN

IVER

SITY

DRS

HWY 10

M|State

NDSU

MSUMConcordia

CollegeFARGO

MOORHEAD

River Corridor Construction ProgressExisting Metro TrailsExisting River Corridor Off or On Street TrailFuture Trail Construction - Funding from GMRPTCFurure Trail Construction - Funding from TAPFuture On Street Trail - Local Funding2017 GMRPTC ApplicationFuture Trail, no funding aquired

PARK

GOLF COURSE

COLLEGE

SCHOOL

DILWORTH

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Agenda Item #11.

leshovsky

Callout

Midtown Trail - Proposed Grant Application Segment

GF

GF

GF

GF

GFGF

GFGF

GF

GF

GF

GF

§̈¦94

£¤10

£¤75

£¤75

I94

UN

IVER

SITY

DR

S

HWY 10

GooseberryMound Park

WoodlawnPark

M|State

NDSU

MSUMConcordia

CollegeFARGO

MOORHEAD

Future Moorhead River Corridor TrailMoorhead River Corridor Trail

PARK

GOLF COURSE

COLLEGE

SCHOOL

TRAILHEAD PARKS

Existing Metro TrailsOn Road Trail

Separated Bikeway

River Corridor Crossings

GF Current

GF Proposed

DILWORTH

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Agenda Item #11.

Mayor and Council Communication Budget Adjustment

July 24, 2017

Page 1 of 2

SUBJECT: Resolution to Approve a Budget Adjustment and to Award Bid to Replace the City Hall Roof RECOMMENDATION: The Mayor and City Council are asked to consider a resolution to approve a budget adjustment and to award bid to replace the City Hall roof. BACKGROUND / KEY POINTS:

• The City Hall roof has consistently leaked over the past year and needs to be replaced. • A roof assessment conducted in 2008 recommended replacing the roof in 2013. • The recent Facilities Condition Assessment (FCA) rated the roof 45 out of 100 and

recommended immediate replacement. • The roof has leaked multiple times over the past 5 years and minor repairs have been

completed. • However, over the past 7 months, Public Works has called a contractor to repair leaks

on 8 separate occasions, the latest occurred on June 27, 2017. Cost for these repairs totaled almost $7,000 and the roof is still leaking.

• The roof is a built-up roof with an EPDM membrane. Both the built-up roof and EPDM membrane need to be replaced.

• 3 bids were received on July 19, 2017 • Low bid was submitted by Herzog Roofing for $137,915

FINANCIAL CONSIDERATIONS: Budget Adjustment #17-019

Fund Name Account Description Expenditure Funding Source

Capital Improvement Reserves 138,000 Capital Improvement Building – Rehab 138,000 Total $138,000 $138,000 Capital Improvement Fund Reserves balance after Budget Adjustment - $64,000. VOTING REQUIREMENTS: Three-Fourths of Council (6) Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



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Agenda Item #12.

Mayor and Council Communication – July 24, 2017 Page 2 of 2

Agenda Item No. 12.

Department: Public Works Prepared by: Steven W. Moore Public Works Director Attachments: Draft Resolution

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Agenda Item #12.


AGENDA SECTION: Departmental Reports

ORIGINATING DEPARTMENT: Public Works

MEETING DATE: 07-24-2017

ITEM NO.

ITEM DESCRIPTION: *Resolution to Approve Budget Adjustment 17-019 and to Award Bid to Replace the City Hall Roof

PREPARED BY: Moore

DRAFT RESOLUTION

WHEREAS, there is a requirement to replace the City Hall roof; and WHEREAS, a low bid of $137,915 was received from Herzog Roofing, Detroit Lakes,

MN. WHEREAS, Budget Adjustment 17-019 is required to fund and award the project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead,

Minnesota to authorize the Mayor and City Manager to approve Budget Adjustment 17-019 and award bid to Herzog Roofing for $137,915 to Replace the City Hall Roof.


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Agenda Item #12.

Mayor and Council Communication Budget Adjustment

July 24, 2017

Page 1 of 2

SUBJECT: *Resolution to Authorize Internal Service Fund Reserve Transfer for Scheduled Equipment Replacement RECOMMENDATION: The Mayor and City Council are asked to consider the transfer of $448,250 from the Radio & Technology Internal Service Reserve Account to the 2017 Radio & Technology Internal Service capital outlay account. BACKGROUND / KEY POINTS: The Police Department needs to replace the current mobile video recorders (MVR’s) and mobile dispatch computers (MDC’s) that are currently in their police vehicles. The capital replacement schedule of 5 years was planned for due to anticipated technology end-of-life recognizing exposure to extreme outside temperatures for vehicles. Sufficient replacement funds have been recovered in the Internal Service Fund Reserves through annual budget capital replacement rents. The majority of the police and fire MDC’s and MVR’s are 5 - 8 years old. Complete replacement of all units is recommended to allow for the best purchasing pricing and technology consistency. This will also allow for cost effective installation with savings realized through one installation appointment. Several months of testing and comparisons were conducted on three MDC and MRV leading brands. The Getac brand MDC and Watch Guard MVR have been recommended for the replacements by the City’s I.T. Department. The mobile dispatch computers and video recorders currently in police and fire vehicles are scheduled for replacement through the Radio & Technology Internal Service Fund. The majority of the computers were purchased in November 2008 and March 2012 with rent collected annually for their replacement. The majority of the mobile video recorders were purchased in September 2011 with cameras that are at the end of their life and no longer available. The MDC bidding process was both national and regional. CDW-G pricing beat direct State contract pricing, thus satisfying State purchasing requirements. Watch Guard only sells direct with pricing through the NASPO State contract. The company CDW-G has provided the lowest quote for the replacement of 31 police MDC’s for $147,000 not including installation costs. Getac’s estimate for the 9 fire computers is approximately $47,000, not including vehicle mounts and installation with these computers expected to be available for release in the next couple months. The new MDC’s will be tablets that officers can remove from the vehicle, providing efficiencies for both the officer and I.T staff. Installation costs and computer mounts are estimated at $16,500. The company, Watch Guard has provided a current quote for the replacement of 27 police MVR’s for $192,994, not including installation, car charging jacks, and server & server hardware costs. These additional costs are estimated at $54,750. The new MVR’s will ease the sharing of evidence with County prosecutors and will also accept body cameras in the future. The 2017 annual budget for the Radio & Technology Internal Service Fund does not have the necessary funds for this expenditure without a transfer from its reserve account. We are requesting $458,250 be transferred from the Radio & Technology Internal Service Reserve Account into the 2017 capital outlay budget of the Radio & Technology Internal Service Fund.

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Agenda Item #13.


Agenda Item No. 13.

FINANCIAL CONSIDERATIONS: There are adequate funds in the Radio & Technology Internal Service Reserve Account ($1.3 M). The replacement of this equipment has been planned for with annual capital replacement rent collected in the Internal Service Reserve Fund. Budget Adjustment #17-018

Fund Name Account Description Expenditure Funding Source

Radio Fund Reserves 458,250 Radio Fund Capital Outlay 458,250 Total $458,250 $458,250 Radio Fund Reserves balance after Budget Adjustment - $850,000. VOTING REQUIREMENTS: Three-Fourths of Council (6) Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Police Prepared by: Tory Jacobson, Lieutenant Attachments: Draft Resolution

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Agenda Item #13.


AGENDA SECTION: Police Department

ORIGINATING DEPARTMENT: Police


ITEM NO. 13.

ITEM DESCRIPTION: *Resolution to Authorize Internal Service Fund Reserve Transfer for Scheduled Equipment Replacement

PREPARED BY: Jacobson

DRAFT RESOLUTION

WHEREAS, the mobile video recorders and mobile dispatch computers located in the police and fire vehicles are currently 5 – 8 years old and scheduled for replacement; and

WHEREAS, replacement funds have been collected through rent payments to the Radio

& Technology Internal Service Fund; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead,

Minnesota that budget adjustment #17-018 using reserves in the amount of $458,250 from the Radio & Technology Internal Service Fund for the purchase and installation of 27 mobile video recorders and 40 mobile dispatch computers is hereby approved.


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Agenda Item #13.



SUBJECT: *Approve Contract and Procedure for Transmission Operator Services with Western Area Power Administration RECOMMENDATION: Moorhead Public Service respectfully requests that the Mayor and City Council approve the attached Contract for Roles and Duties Related to Transmission Operator Services and the attached Transmission Operator Procedure between Western Area Power Administration and the City of Moorhead, acting by and through Moorhead Public Service, contingent upon approval by the Moorhead Public Service Commission on or about July 25, 2017. BACKGROUND / KEY POINTS: Since the inception of the North American Electric Reliability Corporation (NERC) in 2007, and even prior to 2007, all transmission operations for Moorhead Public Service (MPS) have been managed by Western Area Power Administration (WAPA) as part of a system-wide coordination effort to minimize system outages. MPS and WAPA have had a long known understanding that WAPA was the Transmission Operator (TOP) for MPS; however, that understanding was never formalized. With the continual changes of NERC’s reliability requirements, MPS staff was concerned that MPS could also be required to register as a TOP. Since 2015, MPS staff has been working with Missouri River Energy Services and WAPA on an agreement to have WAPA formally be the TOP for MPS. If MPS were to become a registered TOP, there would be an additional annual cost to MPS of approximately $700,000 for the addition of five to seven technical staff to manage the new requirements and provide a 24-hour electric dispatch operation. The attached Contract defines the roles, duties, and contractual obligations between MPS, the City of Moorhead, and WAPA. The attached TOP Procedure defines how MPS and WAPA will operationally manage the TOP services. City Attorney John Shockley has reviewed and approved the attached Contract and TOP Procedure. FINANCIAL CONSIDERATIONS: There is no cost to the City of Moorhead. VOTING REQUIREMENTS: Majority of Quorum Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.


Moorhead Public Service Commission Bill Schwandt General Manager

Department: Public Service

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Agenda Item #14.


Agenda Item No. 14.

Prepared by: Travis Schmidt, MPS Electrical Engineering Manager Attachments: Draft Resolution

Contract No. 17-UGPR-45 for Roles and Duties Related to Transmission Operator Services Transmission Operator Procedure

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Agenda Item #14.


AGENDA SECTION: Moorhead Public Service

ORIGINATING DEPARTMENT: Public Service


ITEM NO. 14.

ITEM DESCRIPTION: *Approve Contract and Procedure for Transmission Operator Services with Western Area Power Administration

PREPARED BY: Schmidt

DRAFT RESOLUTION WHEREAS, since the inception of the North American Electric Reliability Corporation (NERC) in 2007, and even prior to 2007, all transmission operations for Moorhead Public Service (MPS) have been managed by Western Area Power Administration (WAPA) as part of a system-wide coordination effort to minimize system outages; and WHEREAS, MPS and WAPA have had a long known understanding that WAPA was the Transmission Operator (TOP) for MPS; however, that understanding was never formalized; and WHEREAS, with the continual changes of NERC’s reliability requirements, MPS staff was concerned that MPS could also be required to register as a TOP; WHEREAS, since 2015, MPS staff has been working with Missouri River Energy Services and WAPA on an agreement to have WAPA formally be the TOP for MPS; WHEREAS, if MPS were to become a registered TOP, there would be an additional annual cost to MPS of approximately $700,000 for the addition of five to seven technical staff to manage the new requirements and provide a 24-hour electric dispatch operation; and WHEREAS, the Contract for Roles and Duties Related to Transmission Operator Services defines the roles, duties, and contractual obligations between MPS, the City of Moorhead, and WAPA; WHEREAS, the Transmission Operator Procedure defines how MPS and WAPA will operationally manage the TOP services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead to approve the Contract for Roles and Duties Related to Transmission Operator Services and the Transmission Operator Procedure between Western Area Power Administration and the City of Moorhead, acting by and through Moorhead Public Service, contingent upon approval by the Moorhead Public Service Commission on or about July 25, 2017.


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Agenda Item #14.

Contract No. 17-UGPR-45 City of Moorhead, Minnesota

UNITED STATES DEPARTMENT OF ENERGY

WESTERN AREA POWER ADMINISTRATION

Pick-Sloan Missouri Basin Program--Eastern Division

CONTRACT WITH THE

CITY OF MOORHEAD, MINNESOTA FOR

ROLES AND DUTIES RELATED TO TRANSMISSION OPERATOR SERVICES

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Agenda Item #14.





CONTRACT WITH THE

CITY OF MOORHEAD, MINNESOTA FOR


Section

1. Preamble ............................................................................................. ... .... ......... ..... 1 2. Explanatory Recitals ..... ..... ....... .. .. ...................... .... ...... .......... ............ ....... ..... ...... .... 1 3. Agreement .................... ... ..................... ... ........... .................... ..................... .... ......... 2 4. Term and Termination of the Contract ... .. ................................ ... ... ....... .................... 2 5. Responsibilities of the Parties ... .. .. ........ ............... ... .. ..... ........ ......... ....... .............. ... .. 3 6. Exhibit Made Part of the Contract ................................. .. ... ..... ................... .......... ... . .4 7. No Rights Created for the Benefit of Third Party Beneficiaries ...... .. .. ........ ... ..... ..... .. 5 8. No Liability for Electric Disturbances and Interruptions: .......... ........ ... .. ..... ..... ... ........ 5 9. Amendments ...... ... ......... .. ..................... ................................... ............. ..... .............. . 5

10. Reimbursement for TOP Services ..................... .. ......... .... ...... ....... ... ........................ 5 11. Enforcement Authority ...................... .. ... ............. ... ......... ....... .. ....... .. ... .. ................. ... 6 12. Severability ........ ... ........ ... ......... .. .......... .... ......... .. .................... ... ... ... .... ..... .. ....... ... .. . 7 13. General Interconnection Contract Provisions ...... ........... .. ....... ................ ... ... .... ........ 7

Signatures .. ......... .......... ....................... ... .. ... ...... ....... ....... ...... ................................... 8

Exhibit A (Authorized Representatives and Notices) General Interconnection Contract Provisions dated September 26, 2013

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Agenda Item #14.





CONTRACT WITH THE

CITY OF MOORHEAD. MINNESOTA FOR


1. PREAMBLE: This Contract is made and effective this __ day of _____ _

2017, pursuant to the Acts of Congress approved June 17, 1902 (32 Stat. 388),

December 22, 1944 (58 Stat. 887), August 4, 1977 (91 Stat. 565), and Acts amendatory

or supplementary to the foregoing Acts between the UNITED STATES OF AMERICA,

acting by and through the Administrator, Western Area Power Administration,

Department of Energy, hereinafter called WAPA, represented by the officer executing

this Contract or a duly appointed successor, hereinafter called the Contracting Officer,

and CITY OF MOORHEAD, MINNESOTA, a municipal corporation, duly organized

under and by virtue of the laws of the State of Minnesota, acting by and through

Moorhead Public Service, a utility of the City of Moorhead, Minnesota, hereinafter called

the Contractor or Moorhead; their successors and assigns, each sometimes hereinafter

called the Party or together sometimes hereinafter collectively called the Parties.

2. EXPLANATORY RECITALS:

2.1 Moorhead is an owner of Bulk Electric System Facilities (BES Facilities) and the

owner of certain other transmission facilities identified in the Transmission Operator

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Agenda Item #14.


Procedure, as defined herein below, and all such facilities are hereinafter called "Project

Facilities" which are located in WAPA's transmission operator footprint.

2.2 Moorhead owns BES Facilities located within the Midwest Reliability Organization

(MRO) footprint, resulting in the need for Moorhead to comply with certain North

American Electric Reliability Corporation (NERC) Reliability Standards.

2.3 WAPA has been designated a Transmission Operator (TOP) in the NERC

Compliance Registry located within the MRO footprint.

2.4 Moorhead has requested WAPA be the designated TOP for the Project Facilities as

described in Subsection 2.1.

2.5 This Contract is to clarify certain NERC obligations as they pertain to WAPA as a

TOP and Moorhead as an owner of BES Facilities.

2.6 Authorized Representative(s) shall mean the person(s) employed by each Party

who has been granted authority to make and convey decisions concerning the Contract

provisions.

3. AGREEMENT: The Parties agree to the terms and conditions set forth herein .

4. TERM AND TERMINATION OF THE CONTRACT:

4.1 This Contract shall become effective on the date of its execution by the Parties.

This Contract shall be subject to prior termination as otherwise provided for herein, and

shall remain in effect through December 31, 2035, or at an earlier date mutually agreed

to by the Parties.

2 of 9

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Agenda Item #14.


4.2 Any Party may terminate this Contract upon one (1) year written notice to the other

Party. No termination shall become effective until the Parties have complied with all

laws and regulations applicable to such termination.

4.3 If WAPA determines it will not assume or accept future responsibilities associated

with additions or changes to the NERC or Regional Reliability Standards and

Requirements in accordance with Subsection 5.2, either Party will have the right to

terminate this Agreement on not less than 30 days written notice to the other.

4.4 Except as the Parties may otherwise agree in writing, the obligations, duties, and

powers specified in Subsections 5.1 and 5.2 below, shall survive termination of this

Contract for events occurring prior to termination.

5. RESPONSIBILITIES OF THE PARTIES:

5.1 General: WAPA agrees to be the TOP for Moorhead's BES Facilities and operate

certain other transmission facilities as outlined in the separate Transmission Operator

Procedure between WAPA's Upper Great Plains Region and Moorhead. The

Transmission Operator Procedure is to be developed and contemporaneously

executed, and as amended and supplemented, between the Parties. Moorhead may or

may not register as a TOP, but agrees to provide the communication capabilities and

equipment needed for the control, status, indication, and any other information required

by WAPA to perform the TOP and other operating functions for the Project Facilities as

outlined in the separate Transmission Operator Procedure. Moorhead also agrees to

provide the necessary information and follow any operating procedures necessary for

WAPA to provide the TOP and other operating functions as set forth in the

3 of 9

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Agenda Item #14.


Transmission Operator Procedure. The Parties agree to maintain and update the

Transmission Operator Procedure on a timely basis, as necessary. In the event that

additional BES Facilities or certain other transmission facilities are constructed or

acquired by Moorhead and WAPA agrees to assume TOP functional requirements or

operate such facilities, such facilities will be set forth upon mutual agreement in the

Transmission Operator Procedure and will be subject to the requirements of this

Contract.

5.2 NERC Compliance: WAPA agrees to assume the responsibilities associated with

all current, as of the date of execution of this Contract, NERC and/or Regional Reliability

Standards and Requirements as they relate to the TOP registration for the BES

Facilities owned by Moorhead within the MRO footprint. In accordance with the

Transmission Operator Procedure, the Parties will jointly review all future additions or

changes to the NERC and/or Regional Reliability Standards and Requirements as they

relate to the TOP registration. WAPA shall not assume the responsibilities associated

with future additions or changes to the NERC and/or Regional Reliability Standards and

Requirements as they relate to the TOP registration for the BES Facilities owned by

Moorhead except upon written notice to Moorhead.

6. EXHIBIT MADE PART OF THE CONTRACT: Exhibit A attached hereto, is hereby

made a part of this Contract and shall be in force and effect in accordance with its

terms. The Parties shall act in good faith to update the Exhibit A to keep the document

current.

4 of 9

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Agenda Item #14.


7. NO RIGHTS CREATED FOR THE BENEFIT OF THIRD PARTY BENEFICIARIES:

Except as otherwise expressly provided herein, nothing in this Contract shall be

construed or deemed to confer any right or benefit on, or create any duty to, or standard

of care with reference to any third party.

8. NO LIABILITY FOR ELECTRIC DISTURBANCES AND INTERRUPTIONS: Neither

Party shall be liable under this Contract to the other Party for any claim, penalty,

demand, liability, loss, or damage, whether direct, indirect, or consequential, or whether

arising in tort, contract or other theory of law or equity, incurred by the other Party or its

customers, resulting from the separation of the Parties' systems in an emergency or

interruption.

9. AMENDMENTS: This Contract may be amended or revised from time to time by the

mutual agreement of the Parties in writing, subject to any required notification or

approvals.

10. REIMBURSEMENT FOR TOP SERVICES:

10.1 The Parties agree that to the extent that Moorhead's Project Facilities identified in

the Transmission Operator Procedure are transferred to the functional control of

Southwest Power Pool, Inc. (SPP), resulting in the facilities being included in the Upper

Missouri Zone (UMZ or Zone 19) zonal rates under the SPP Open Access Transmission

Tariff (SPP Tariff), there will be no charges for the services provided under this Contract

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for such Project Facilities. WAPA recovers its costs to provide such services to facilities

included in the UMZ zonal rates under Schedule 1 of the SPP Tariff.

10.2 If any of Moorhead's Project Facilities included in the TOP services under this

Contract are not under the functional control of SPP and are also not included in the

UMZ zonal rates under the SPP Tariff, Moorhead agrees to reimburse WAPA for

providing TOP services for such Project Facilities at WAPA's currently effective cost-

based fee for such services.

11. ENFORCEMENT AUTHORITY:

11.1 Notwithstanding any provision herein, by entering into this Contract WAPA has

not, and will not be deemed to have: 1) waived or conceded any defense it may have,

including sovereign immunity, intergovernmental immunity, or lack of subject matter

jurisdiction; 2) accepted any liability, responsibility, or obligation to pay any penalty or

fine to which it would not have been subject in the absence of this Contract; or 3)

accepted or assumed any obligation to act, or refrain from acting, in a manner that

would violate, or exceed the authority conferred on it by, any applicable statute,

regulation, or lawfully promulgated court or regulatory order.

11.2 Notwithstanding any provision herein, by entering into this Contract, Moorhead

has not, and will not be deemed to have: 1) waived or conceded any defense it may

have; or 2) accepted or assumed any obligation to act, or refrain from acting, in a

manner that would violate, or exceed the authority conferred on it by, any applicable

statute, regulation, or lawfully promulgated court or regulatory order.

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12. SEVERABILITY: If any provision of this Contract is determined to be invalid, void,

or unenforceable by any court or other governmental authority having jurisdiction, such

determination shall not invalidate, void, or make unenforceable any other provision,

agreement, or covenant of this Contract.

13. GENERAL INTERCONNECTION CONTRACT PROVISIONS (GICP): The GICP,

effective September 26, 2013, attached hereto, are made part of this Contract the same

as if they had been expressly set forth herein. In the event these GICP differ from the

requirements of this Contract, specific terms set forth in the Contract shall prevail.

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IN WITNESS WHEREOF, the Parties have caused this Contract to be executed the day

and year first above written.

(SEAL)

Attest:

Title ----------

8 of 9


Title Vice President of Operations

for Upper Great Plains Region

Address P.O. Box 790 - ------------

Watertown. SD 57201-0790

CITY OF MOORHEAD, MINNESOTA

By~~~~~~~~~~~~~-

Title ---""-M=a~vo=r _________ _

Add ress_----'5"-'0"-"0'--C=-e=n""""t-=-e"'"""r A'"""v-'--e"'"'"n""""u"'""e ....... -'--P"'""'O--'B=-o=x-'--7""-7"""""'9"----

Moorhead. MN 56561-0779

Title ----=-C""'""it.,_y-'-'-M=a=-no.=a...._g-=-e r'------------

Add ress_----'5"-'0"-"0_C=-e=n""""t-=-e"'"""r A'"""v-'--e"'"'"n""""u"'""e ....... -'--P-=O--'B=-o=x-'--7""-7"""""'9"----


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Agenda Item #14.

(SEAL)

Attest:

9 of 9


MOORHEAD PUBLIC SERVICE

Title: Commission President ~~-----'"-=-'-'-'--'-'-'-=-==-'-'--'--'"-"-"-'~'-=-~~--

Address 500 Center Avenue. PO Box 779 -----''-"--"---"'-~~--'-'-'~~'----"--=-~'"-'-''----


Title: __ ____:C=..co=m..:....:.m:...:....:..:..is=s..:...::io:.:..n;_;S=..ce=c:.:..re=t=a-'--'rv~---

Add ress_----'5"'"""'0'"""'0_C=-e=n""""t""""er'--'A"""""v"'-'e"-'-n"-"u=e_,_. "-P-=O--'B=-o"-'-x"-7'--'7'--'9'----


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Agenda Item #14.

Exhibit A Contract No. 17-UGPR-45 City of Moorhead, Minnesota

EXHIBIT A (Authorized Representatives and Notices)

1. This Exhibit A made this day of , 20 __ , under and as a part of Contract No. 17-UGPR-45, dated , 20 , hereinafter called the Contract, shall become effective on the effective date of the Contract, and shall remain in effect until superseded by another Exhibit A or termination of the Contract.

2. AUTHORIZED REPRESENTATIVES OF THE PARTIES: The following table contains the Authorized Representatives who are authorized to act on behalf of WAPA and Moorhead with respect to those matters contained in the Contract which are the functions and responsibilities of the Authorized Representatives of the Parties. Either Party may change the designation of its Authorized Representative(s) upon oral notice given to the other, confirmed promptly by written notice.

Moorhead WAPA

For Contract Management For Contract Management

Bill Schwandt Mike Radecki General Manager Contracts and Energy Services Manager Phone: (218) 477-8004 Phone: (406) 255-2930 Email: [email protected] Email : [email protected]

[email protected]

For Real Time Operations* For Real Time Operations*

For Outage Coordination For Outage Coordination

MPS Dispatch Seth Bury (North) Phone: (218) 4 77-8080 Power Operations Specialist Email: [email protected] Phone: (605) 882-7512

Email: [email protected] Travis Schmidt Electrical Engineering Manager Travis Everson (South) Phone: (218) 4 77-8084 Power Operations Specialist Email: [email protected] Phone: (605) 882-7504

Email: [email protected]

For Billing For Billing

Travis Schmidt Julie Matteson Electrical Engineering Manager Public Utilities Specialist Phone: (218) 477-8084 Phone: (605) 882-7590 Email: [email protected] Email: [email protected]

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Exhibit A Contract No. 17-UGPR-45 City of Moorhead, Minnesota

*The Parties will exchange phone numbers for their respective system control centers on a confidential basis.

2. NOTICES: The following table contains the address where official Notices are to be sent, with respect to those matters contained in the Contract.

To: City of Moorhead, MN

Bill Schwandt General Manager Moorhead Public Service 500 Center Avenue, PO Box 779 Moorhead, MN 56561-0779 Phone: (218) 477-8004 Email: [email protected]

[email protected]

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To: WAPA

Lloyd Linke Vice President for Operations for Upper Great Plains Region Western Area Power Administration 1330 41 st Street SE Watertown, SD 57201 Phone: (605) 882-7500 Email: [email protected]

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Agenda Item #14.

Effective September 26, 2013

WESTERN AREA POWER ADMINISTRATION GENERAL INTERCONNECTION CONTRACT PROVISIONS

Provision Page 1 . Applicability ........................... .......... ........................ ........................ ........... ........ ........ 1 2. Character Of Service ...... .... .... ............................. .... .................................................... 1 3. Continuity Of Service .......... ... ..... ... ...... .... .. -. ...... ............. ............... .. .. ..................... ... .. 1 4. Metering ............... .. ..... .......... ....... ... ................ ... ... .. ........... ... ... ...................... .... ........ 1 5. Construction, Operation, And Maintenance Of Power Systems ..... .. ...... .................... 2 6 . Billing And Payment ........... _ .................................................. ..... ..... ............................ 3 *7. Design Approval. .......... ................ ................. .... ............ .. ... .. ................................. ... . 4 8. Inspection And Acceptance ... , ......... .............. ............ .. .............. ........... ...... .. ...... .. ... .. . 4 9. As-Built Drawings ......... ...... ......... ...... .......... ... .. ...................... ............ ... ........ .. ...... ...... 5 10. Equipment Ownership Markers ... ............ ............ ..... ... ............... ... .. ........... .............. 5 11. Changes To System Or Use Of Facilities ... ... .... ..... ..................... ............................. 6 12. Changes To Control Facilities ................. .... ..... ........ .. .... .. ... ... ... ... .................. .... ...... 6 13. Modification Of Interconnection Facilities ...... ....................... .... ... .. .. ... ................... ... 7 14. Transmission Rights ................................ ................. .... ............. ............... .......... ...... 7 15. Construction And Safety Procedures ...... .... ...... ..... ... .. .. .. .... ............................. ..... ... 8 16. Environmental Compliance ......... ..... ........ .... .................... .... .... ....... ........ ......... .. .... .. 9 17. Responsibility For Regulated Materials .............................. ..... ...... ................ ... ........ 9 18. Authorized Representatives Of The Parties ..................................... .. ... ........... ...... 10 19. Notices ....................................................................... .. ...... .. ......... .... ..................... 1 O 20. Effect Of Section Headings ................ ........ ...... ..... .. ...... ........................ ..... ............ 1 O 21. Operating Guidelines And Procedures ....... .... ... ....... .......... ....... ...... ........ ............... 1 O 22. Uncontrollable Forces ................................. ... ........................ ... ..... .............. .. ........ 1 O 23. Liability .. .. ..... : ........ , .................. ............ ............. ..... ... .. ..................................... ...... 0 • 11 24. Cooperation Of Contracting Parties ....... ...... .......... ............................ .. ... .... ..... ....... 11 25. Transfer Of Interest In Contract .......... ........... .. ............. .. .. ................ ....... .... ........... 11 26. Choice Of Law And Forum ..... .... .. ......... ..... ... ......... .............. .. .. ...................... ........ 12 27. Waivers .... ...... ... .. .. ..... ... ...................... ........ ... .................. .. ..... .............. ... ......... ..... 12 28. Contingent Upon Appropriations And Authorization .... .............. .... .......... .... ..... ...... 12 29. Covenant Against Contingent Fees .............. ..... ............. .... ... ... ...... ............... ......... 12 30. Contract Work Hours And Safety Standards .. ........................... ..................... ...... .. 12 31 . Equal Opportunity Employment Practices ...... ...... ........ ........... ..... ... ................ ....... 12 32. Use Of Convict Labor ................................................................ .......... ... ....... ......... 13 33. Dispute Resolution ............................................. .. .... .................. ........... ....... .. ........ 13

*Added Subsection Headings for Clarification, Revised September 26, 2013

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4.3 Except as otherwise provided in Provision 4.4 hereof, should any meter that is used by Western for billing or other accounting purposes fail to register accurately, the electric power and energy supplied or transmitted during the period of failure to register accurately, shall, for billing purposes, be estimated by Western from the best available information.

4.4 If inspections and tests of a meter used by Western for billing or other accounting purposes disclose an error exceeding 2 percent, or a lesser range in error as agreed upon by the parties, then a correction based upon the inaccuracy found shall be made to the service records for the period of inaccuracy as determined by Western. If the period of inaccuracy cannot be determined, the inaccuracy shall be assumed to have existed during the entire monthly billing period immediately preceding the billing period in which the inspection or test was made and the resulting correction shall be made accordingly.

4.5 Any correction in billing or other accounting information that results from a correction in meter records shall be made in a subsequent monthly bill rendered by Western to Contractor. Payment of such bill shall constitute full adjustment of any claim between the parties arising out of inaccurate metering equipment.

5. CONSTRUCTION, OPERATION, AND MAINTENANCE OF POWER SYSTEMS:

5.1 Contractor's Power System: The Contractor shall, and, if applicable, shall require each of its members or transmission agents to construct, operate, and maintain its power system in a manner which, as determined by Western, will not interfere with the operation of the system of Western or its transmission agents over which electric services are furnished to the Contractor under the contract, and in a manner which will coordinate with the protective relaying and other protective arrangements of the system(s) of Western or Western's transmission agents. Western may reduce or discontinue furnishing services to the Contractor if, after notice by Western, the Contractor fails or refuses to make such changes as may be necessary to eliminate an unsatisfactory condition on the Contractor's power system which is determined by Western to interfere significantly under current or probable conditions with any service supplied from the power system of Western or from the power system of a transmission agent of Western. Such a reduction or discontinuance of service will not relieve the Contractor of liability for any minimum charges provided for in the contract during the time said services are reduced 9r discontinued. Nothing in this Provision shall be construed to render Western liable in any manner for any claims, demands, costs, losses, causes of action, damages, or liability of any kind or nature arising out of or resulting from the construction, operation, or maintenance of the Contractor's power system.

5.2 Western's Power System: Western shall construct, operate, and maintain its power system in a manner which, as determined by the Contractor, will not interfere with the operation of the system of the Contractor over which services are furnished to Western

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6.4 The billing party shall have the right, upon not less than fifteen (15) business days advance written notice, to suspend furnishing the services specified in the contract for nonpayment of bills in full when due, and to refuse to resume such services so long as any part of the amount due remains unpaid. Such a suspension of service will not relieve the delinquent party of liability for minimum charges during the time service is so suspended. The rights reserved herein shall be in addition to all other remedies available to the parties either by law or in equity, for the breach of any of the terms hereof.

7. DESIGN APPROVAL:

7.1 Design Approval for Work in Western's Facilities: All facilities, construction, and installation by the Contractor pursuant to the contract shall be subject to the approval of Western. Facilities interconnections shall normally conform to Western's current "General Requirements for Interconnection," in effect upon the signing of the contract document providing for each interconnection, copies of which are available from Western. At least ninety (90) calendar days, unless otherwise agreed, prior to the date the Contractor proposes to commence construction or to incur an obligation to purchase facilities to be installed pursuant to the contract, whichever date is the earlier, the Contractor shall submit, for the approval of Western, detailed designs, drawings, and specifications of the facilities the Contractor proposes to purchase, construct, and install. The Contractor assumes all risks for construction commenced or obligations to purchase facilities incurred prior to receipt of approval from Western. Western's review and approval of designs and construction work in no way implies that Western is certifying that the designs meet the Contractor's needs.

7.2 Design Approval for Work in Contractor's Facilities: All facilities, construction, and installation by Western pursuant to the contract shall be subject to the approval of the Contractor. At least ninety (90) calendar days, unless otherwise agreed, prior to the date Western proposes to commence construction or to incur an obligation to purchase facilities to be installed pursuant to the contract, whichever date is the earlier, Western shall submit, for the approval of the Contractor, detailed designs, drawings, and specifications of the facilities Western proposes to purchase, construct, and install. Western assumes all risks for construction commenced or obligations to purchase facilities incurred prior to receipt of approval from Contractor. The Contractor's review and approval of designs and construction work in no way implies that the Contractor is certifying that the designs meet Western's needs.

8. INSPECTION AND ACCEPTANCE:

8.1 Inspection and Acceptance by Western in Western's Facilities: Western shall have the right to inspect the materials and work furnished by the Contractor, its agents,

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contract which are owned by the Contractor, by permanently affixing thereto suitable markers clearly identifying the Contractor as the owner of said equipment and facilities.

10.2 If requested by the Contractor, Western shall identify all movable equipment and, to the extent agreed upon by the parties, all other salvageable facilities constructed or installed on the Contractor's right(s)-of-way or in the Contractor's substations pursuant to the contract which are owned by Western, by permanently affixing thereto suitable markers clearly identifying Western as the owner of said equipment and facilities.

11. CHANGES TO SYSTEM OR USE OF FACILITIES:

11.1 The Contractor shall notify Western of any proposed system change or changes to the use of facilities relating to the facilities governed by the contract.

11 .2 Western shall notify the Contractor of any proposed system change or changes to the use of facilities relating to the facilities governed by the contract.

12. CHANGES TO CONTROL FACILITIES:

12.1 Changes to Western Control Facilities: If at any time during the term of the contract, Western determines that changes or additions to control, relay, or communications facilities are necessary to maintain the reliability or control of Western's transmission system, and said changes or additions are entirely or partially required because of the Contractor's equipment installed under the contract, such changes or additions shall, after consultation with the Contractor, be made by Western with all costs or a proportionate share of all costs, as determined by Western, to be paid by the Contractor. Western shall notify the Contractor in writing of the necessary changes or additions and the estimated costs to be paid by the Contractor. If the Contractor fails to pay its share of said estimated costs, Western shall have the right, after giving sixty (60) calendar days' written notice to the Contractor, to terminate the applicable facility installation provisions to the contract and require the -removal of the Contractor's facilities.

12.2 Changes to Contractor Control Facilities: If at any time during the term of the contract, the Contractor determines that changes or additions to control, relay, or communications facilities are necessary to maintain the reliability or control of the Contractor's transmission system, and said changes or additions are entirely or partially required because of Western's equipment installed under the contract, such changes or additions shall, after consultation with Western, be made by the Contractor with all costs or a proportionate share of all costs, as determined by the Contractor, to be paid by Western. The Contractor shall notify Western in writing of the necessary changes or additions and the estimated costs to be paid by Western. If Western fails to pay its share of said estimated costs, the Contractor shall have the right after giving sixty (60) calendar days' written notice to Western, to terminate the applicable facility installation provisions to the contract and require the removal of Western's facilities.

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will give ninety (90) calendar days' written notice to Western of its intent to increase the rating and identify the date the rating increase is required. Western agrees to modify its facilities by this date, or a mutually agreeable alternative date, so that the transmission path shall be equal, in terms of capacity and reliability, as determined by Contractor using good utility practices, to the path in the rest of the Contractor transmission line or bus. Unless otherwise agreed to, Western shall be responsible for the costs of said modifications.

14.5 Ownership of bus facilities by the Contractor in Western's substations at the points of interconnection specified in the contract does not permit Contractor or third parties to make other connections to these bus facilities without Western's prior approval. Western further retains the right to modify or expand its system and facilities as necessary, including making connections to the Contractor's bus facilities in Western's substations without the Contractor's approval, in accordance with good utility practices.

14.6 Ownership of bus facilities by Western in Contractor's substations at the points of interconnection specified in .the contract does not permit Western or third parties to make other connections to these bus facilities without Contractor's wior approval. The Contractor further retains the right to modify or expand its system and facilities as necessary, including making connections to Western's bus facilities in the Contractor's substations without Western's approval, in accordance with good utility practices.

14.7 Any other allowed use of Western's bus facilities by the Contractor, and/or any other allowed use of the Contractor's bus facilities by Western, must be explicitly granted in the contract.

15. CONSTRUCTION AND SAFETY PROCEDURES:

15.1 The Contractor hereby acknowledges that it is aware of the hazards inherent in high-voltage electric lines and substations, and hereby assumes full responsibility at all times for the adoption and use of necessary safety measures required to prevent accidental harm to personnel engaged in the construction, inspection, testing, operation, maintenance, replacement, or removal activities of the Contractor pursuant to the contract. Relating to the work to be performed by the Contractor under the contract, the Contractor and the authorized employees, agents, and subcontractors of the Contractor shall comply with all applicable safety laws and building and construction codes, including the provisions of Chapter 1 of the current Power System Operations Manual, entitled Power System Switching Procedure, and the Occupational Safety and Health Administration regulations, Title 29 C.F.R. §§ 1910 and 1926, as amended or supplemented. In addition to the safety program required herein, upon request of Western, the Contractor shall provide sufficierit information to demonstrate that the Contractor's safety program is satisfactory to Western.

15.2 The Contractor and its authorized employees, agents, and subcontractors shall familiarize themselves with the location and character of all the transmission facilities of

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Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9601-9675, the Oil Pollution Act of 1990, 33 U.S.C. §§ 2702-2761, the Clean Water Act, 33 U.S.C. §§ 1251-1387, the Safe Drinking Water Act, 42 U.S.C. §§ 300fj26, and the regulations and executive orders implementing these laws, as they may be amended or supplemented, and any other existing or subsequent applicable laws, regulations, and executive orders. Each party shall label its equipment containing regulated material in accordance with appropriate laws and regulations. If the party owning the equipment does not perform activities required under appropriate laws and regulations within the time frame specified therein, the other party may perform or cause to be performed the required activities after notice to and at the sole expense of the party owning the equipment. ·

18. AUTHORIZED REPRESENTATIVES OF THE PARTIES: Each party to the contract, by written notice to the other, shall designate the representative(s) who is (are) authorized to act in its behalf with respect to those matters contained in the contract which are the functions and responsibilities of the authorized representatives of the parties. Each party may change the designation of its authorized representative(s) upon oral notice given to the other, confirmed promptly by written notice.

19. NOTICES: Any notice, demand, or request specifically required by the contract or these Provisions to be in writing shall be considered properly given when delivered in person or sent by postage prepaid registered or certified mail, commercial delivery service, facsimile, electronic, prepaid telegram or by other means with prior agreement of the parties, to each party's authorized representative at the principal offices of the party. The designation of the person to be notified may be changed at any time by similar notice. Where facsimile or electronic means are utilized for any communication covered by this Provision, the sending party shall keep a contemporaneous record of such communications and shall verify receipt by the other party.

20. EFFECT OF SECTION HEADINGS: Section headings or Provision titles appearing in the contract or exhibits are inserted for convenience only and shall not be construed as interpretations of text.

21. OPERATING GUIDELINES AND PROCEDURES: The parties, to the contract may agree upon and put into effectJrom time to time, such other written guidelines and procedures as may be required in order to establish the methods of operation of the power system to be followed in the performance of the contract.

22. UNCONTROLLABLE FORCES: No party to the contract shall be considered to be in default in performance of any of its obligations under the contract, except to make payment as specified in Provision 6 (Billing and Payment) herein, when a failure of performance shall be due to an uncontrollable force. The term "uncontrollable force" means any cause beyond the control of the party affected, including but not restricted to, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material

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26. CHOICE OF LAW AND FORUM: Federal law shall control the obligations and procedures established by this contract and the performance and enforcement thereof. The forum for litigation arising from this contract shall exclusively be a Federal court of the United States, unless the parties agree to pursue alternative dispute resolution.

27. WAIVERS: Any waivers at any time by either party to the contract of its rights with respect to a default or any other matter arising under or in connection with the contract shall not be deemed a waiver with respect to any subsequent default or matter.

28. CONTINGENT UPON APPROPRIATIONS AND AUTHORIZATION :

28.1 Where activities provided for in the contract or these Provisions extend beyond the current fiscal year, continued expenditures by Western are contingent upon Congress making the necessary appropriations required for the continued performance of Western's obligations under the contract and these Provisions. In case such appropriation is not made, the Contractor and/or all other signatories to this contract hereby releases Western from its obligations under the contract and these Provisions, and from all liability due to the failure of Congress to make such appropriation.

28.2 In order to receive and expend funds advanced from the Contractor, and/or all other signatories to this contract; necessary for the continued performance of the obligations of Western under the contract, additional authorization may be required. In case· such authorization is not received, Contractor, and/or all other signatories to this contract, hereby releases Western from those contractual obligations and from all liability due to the lack of such authorization.

29. COVENANT AGAINST CONTINGENT FEES: The Contractor and/or all other signatories to this contract warrants that no pe·rson or selling agency has been employed or retained to solicit or secure the contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor and/or all other signatories to this contract for the purpose of securing business. For breach or violation of this warranty, Western shall have the right to annul the contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee.

30. CONTRACT WORK HOURS AND SAFETY STANDARDS: The contract, to the extent that it is of a character specified in Section 103 of the Contract Work Hours and Safety Standards Act (Act), 40 U.S.C. § 3701, as amended or supplemented, is subject to the provisions of the Act, 40 U.S.C. §§ 3701-3708, as amended or supplemented, and to regulations promulgated by the Secretary of Labor pursuant to the Act.

31. EQUAL OPPORTUNITY EMPLOYMENT PRACTICES: Section 202 of Executive Order No. 11246, 30 Fed. Reg. 12319 (1965), as amended by Executive Order No.

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Agenda Item #14.

Transmission Operator Procedure

Between

Western Area Power Administration Upper Great Plains Region

&


Western Area Power Administration

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Agenda Item #14.

Version 1

Pursuant to the terms of Contract No. 17-UGPR-45, between Western Area Power Administration, Upper Great Plains Region (WAPA-UGPR} and the City of Moorhead, Minnesota (Moorhead}, as amended or supplemented, hereinafter referred to as "Contract", WAPA (also referred to as WAPA-UGPR} agrees to be the Transmission Operator (TOP} for Moorhead's Bulk Electric System (BES} Facilities (BES Facilities} and operate certain other transmission facilities as outlined in Exhibit A to this Transmission Operator Procedure (Procedure} consistent with the operating and coordination procedures set forth in this Procedure.

Pursuant to the Contract, Moorhead agrees to provide the necessary information and follow any operating procedures necessary for WAPA-UGPR to provide the TOP and other operating functions, which are described below.

WAPA-UGPR and Moorhead, each sometimes hereinafter individually called Party, and both sometimes hereinafter collectively called the Parties, agree to form a Joint Operating Committee, as set forth in Section 13 below, to maintain and update this Procedure and to address coordination issues related to this Procedure.

1. Backup Control

WAPA-UGPR and Moorhead agree that no backup control will be provided by Moorhead for the BES Facilities or other facilities specifically covered under this Procedure.

2. Switching

2.1 Moorhead will adhere to the requirements of Western Area Power Administration's Power System Operations Manual (PSOM} Chapter 1 and WAPA-UGPR's switching procedures when switching at Moorhead's BES Facilities and other transmission facilities under WAPA-UGPR's dispatch jurisdiction.

2.2 WAPA-UGPR's Safety, Hot Line, Lock out-Tag out, and Special Condition Tags shall be used on Moorhead's BES Facilities and other transmission equipment under WAPA-UGPR's dispatch jurisdiction.

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2.3 All Moorhead personnel that operate Moorhead's BES Facilities and other transmission equipment under WAPA-UGPR's dispatch jurisdiction under Special Conditions that will perform General Switching, hold Clearances, Hot Line Orders issued by WAPA-UGPR must be certified under switching procedures outlined in Western Area Power Administration's PSOM Chapter 2 and must be included on WAPA-UGPR's Certified Switchman's List.

2.4 WAPA-UGPR will supply Moorhead with Safety, Hot Line, Lock out-Tag out, and Special Condition Tags for each Moorhead substation identified in Exhibit A. WAPA-UGPR will furnish to Moorhead the latest versions of Western Area Power Administration's PSOM Chapter 1 and Chapter 2 and provide updates as they are available.

3. Training

3.1 WAPA-UGPR will provide Moorhead personnel training on existing transmission operating procedures including the communications process, outage requests process (who can request, the information required, timing requirements, etc.), outage approvals and denials, and the switching process prior to the effective date of this Procedure. Initial and recurrent training on existing, revised, and future operating procedures will be provided as needed to ensure Moorhead personnel are properly trained and certified on the current operating procedures.

3.2 WAPA-UGPR personnel will provide switchman training to Moorhead personnel in accordance with Western Area Power Administration's PSOM Chapter 1 and Chapter 2.

4. Call Outs and Emergency Procedures

WAPA-UGPR will provide Moorhead with copies of the Real Time and Emergency Operating Procedures which include, but are not limited to: call-out procedures, outage coordination, and energization of equipment after a fault, etc. Should a disagreement exist between WAPA-UGPR and Moorhead regarding the procedures, Moorhead can provide alternate procedures for review. If WAPAUGPR does not agree with the Moorhead alternate procedures, the Parties will work together to develop procedures that are mutually acceptable.

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Agenda Item #14.

5. Emergencies

An emergency is defined as a situation that develops suddenly and unexpectedly, requiring immediate action such as:

Facilities in such a condition as to be deemed hazardous to the public, maintenance personnel, or the power system with the potential to cause loss of life, limb, or property.

A power outage to customers, which could be hazardous to life, limb, or property.

5.1 In an emergency, Moorhead authorized personnel may modify or suspend the procedures outlined in this Procedure temporarily, as necessary, to permit proper handling of the specific emergency. For emergency switching when authorized Moorhead personnel are not available, other personnel may be used. These may be either WAPA-UGPR or Moorhead employees deemed qualified by the WAPAUGPR System Operator to perform the switching. In handling such emergencies, safety shall be the primary consideration. Moorhead Authorized personnel shall first ensure that the situation is safe, and then contact the WAPA-UGPR System Operator.

5.2 For the purposes of the Procedure, Moorhead authorized personnel are identified as those Moorhead employees included on WAPA-UGPR's Certified Switchman's List.

6. BES and Other Facility Monitoring

6.1 Moorhead and WAPA-UGPR agree that anyone visiting a Moorhead BES Facility or other facility under WAPA-UGPR's dispatch jurisdiction will contact WAPA-UGPR South Dispatch or WAPA-UGPR North Dispatch, as appropriate, upon arrival and departure, state the reason for the visit, and provide specific details regarding any work that may affect power system operation or reliability. The visit and reason for the visit will be recorded in the WAPA-UGPR Operations and Moorhead substation logs.

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6.2 Moorhead will be responsible for the physical security monitoring of Moorhead's BES Facilities and other facilities covered under this Procedure unless Moorhead's facility or equipment is located within a WAPA-UGPR substation.

7. Facility Review

7.1 All existing and future Moorhead BES Facilities and other facilities under this Procedure to be operated or controlled by WAPA-UGPR shall be reviewed by WAPA-UGPR to ensure they meet WAPA-UGPR's interconnection requirements.

7.2 Moorhead's BES Facilities and other facilities not currently meeting WAPAUGPR's interconnection requirements shall be modified or upgraded as soon as practical, but no later than two years from the effective date of this Procedure. Moorhead will provide notification to WAPA-UGPR upon completion of activities.

7.3 All Transmission Elements operated at 100-kV or higher, as well as Real Power and Reactive Power resources connected at 100-kV or higher are considered BES, unless modified by inclusion or exclusion from the BES, in accordance with the NERC definition effective July 1, 2014. Moorhead will provide BES selfdetermination or BES exclusion documentation for all BES Facilities and other facilities excluded from the BES under this Procedure for the purpose of clearly delineating facilities that shall be considered part of the BES.

7.4 Prior to upgrade or modification to an existing Moorhead BES Facility or other facility or building a new BES Facility or other facility, for which WAPA-UGPR will have dispatching jurisdiction or operational control, Moorhead agrees to provide WAPA-UGPR with preliminary information for review as outlined in Section 8.2.

8. BES Facilities Drawings, Manuals, Operating Diagrams, Equipment Ratings, and Test Reports

8.1 Moorhead will provide WAPA-UGPR with one-line diagrams, AC and DC schematic drawings and site layout drawings for each BES substation or line, and

any other transmission facilities, for which WAPA-UGPR will have dispatching jurisdiction or operational control.

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Agenda Item #14.

8.2 Prior to upgrade or modification to an existing Moorhead BES Facility or other transmission facility or building a new BES Facility or other transmission facility for which WAPA-UGPR will have dispatching jurisdiction or operational control, Moorhead agrees to provide WAPA-UGPR with preliminary design drawings before finalization of the design has been completed. The drawings shall be provided far enough in advance to allow WAPA-UGPR adequate time to review and comment on the proposed design. If WAPA-UGPR does not agree with Moorhead's proposed design of the BES Facility, the Parties will work together to develop a design that is mutually acceptable to both.

8.3 Upon completion of an upgrade or modification to an existing Moorhead BES Facility or other transmission facility or completion of a new BES Facility or other transmission facility, described in Section 8.2, Moorhead agrees to provide WAPAUGPR with "As-Built" drawings as soon as practical.

8.4 Moorhead will provide System Operating Diagram information to WAPAUGPR. The information shall include equipment numbers, mileage between BES Facilities and other transmission facilities to nearest one hundredth of a mile, conductor sizes, sources of back feed, and any additional information required for the facilities to be incorporated into WAPA-UGPR's System Operating Diagrams by WAPA-UGPR personnel.

8.5 WAPA-UGPR will maintain Energy Management System (EMS) modeling for Moorhead's BES Facilities as required. Upon request by WAPA-UGPR, Moorhead will provide test reports and/or documentation necessary to ensure Moorhead's BES Facilities are properly modeled in the EMS of the Reliability Coordinator (RC) and WAPA-UGPR as the TOP.

8.6 Moorhead will provide WAPA-UGPR with Facility Rating information for all BES Facilities and other transmission facilities under this Procedure as determined by Moorhead's Facility Rating Methodology. Moorhead will furnish normal and emergency Facility Ratings for all BES Facilities and other transmission facilities. Any changes to Moorhead's Facility Ratings for any BES Facilities and other transmission facilities under this Procedure will be provided to WAPA-UGPR prior to the change being implemented. WAPA-UGPR will report Moorhead's BES Facility Ratings as the associated BES Facility System Operating Limit (SOL) to the

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Agenda Item #14.

RC and neighboring Transmission Operators, unless WAPA-UGPR establishes a different SOL that is more-limiting, per Section 8.11.

8.7 Upon request, Moorhead will provide WAPA-UGPR with copies of operating manuals for equipment associated with the BES Facilities and other transmission facilities under this Procedure.

8.8 Moorhead will provide WAPA-UGPR with Communications One Line Diagrams for the coordination of communications requirements to allow WAPA-UGPR visibility for control and operation of Moorhead BES Facilities and other transmission facilities.

8.9 Moorhead shall maintain and provide current data, records, and drawings describing the physical and electrical properties of BES Facilities under WAPAUGPR TOP jurisdiction. Moorhead shall provide information deemed necessary by the TOP and abide by all guidelines and procedures specified by the TOP. Moorhead will comply with the documented WAPA-UGPR data specification for Operational Planning Analyses, Real-time monitoring, and Real-time Assessments of Moorhead BES Facilities. Moorhead shall provide all Real-time data, operational modeling information, and operating data necessary for the TOP to perform Operational Planning Analyses, Real-time monitoring, and Real-time Assessments. Moorhead will resolve data quality issues upon notification by WAPA-UGPR that data quality adversely affects Operational Planning or Real-time Assessments. WAPA-UGPR does not assume any responsibility for data, or attributes of data, provided on behalf of Moorhead to external entities, such as the RC.

8.10 Moorhead will provide all information for facilities not under WAPA-UGPR TOP jurisdiction including those identified in Exhibit A as other transmission facilities, to the RC and/or Regional Transmission Organization (RTO) directly. WAPA-UGP does not assume any responsibility to provide non-BES facility information to the RC and/or RTO.

8.11 WAPA-UGPR, as TOP, shall establish SOLs (as directed by its RC) for its

portion of the RC Area, including Moorhead's BES Facilities, that are consistent with its RC's SOL Methodology. WAPA-UGPR will consider SOLs proposed by Moorhead in establishing the SOLs for Moorhead's BES Facilities.

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Agenda Item #14.

9. SCADA Functionality and Design

9.1 Moorhead agrees to condition the BES Facilities and other transmission equipment that is under WAPA-UGPR's dispatching jurisdiction or operational control to comply with WAPA-UGPR's SCADA Conditioning Guidelines.

9.2 If the present Moorhead design is not acceptable to WAPA-UGPR, Moorhead agrees to perform modifications or upgrades to meet WAPA-UGPR's SCADA Conditioning Guidelines as soon as practical, but no later than two years from the effective date of this Procedure. Moorhead will provide notification to WAPAUGPR upon completion of activities.

9.3 If the present Moorhead design is acceptable to WAPA-UGPR, but does not completely meet the SCADA Conditioning Guidelines, Moorhead agrees to perform modifications or upgrades to meet WAPA-UGPR SCADA Conditioning Guidelines coincidental with other future facility modifications or upgrades. Moorhead will provide notification to WAPA-UGPR upon completion of activities.

9.4 Moorhead agrees to comply with WAPA-UGPR SCADA Conditioning Guidelines on any future modifications or upgrades to existing or new Moorhead BES Facilities or other transmission facilities under WAPA-UGPR's dispatching jurisdiction or operational control.

10. Communications

10.1 Moorhead and WAPA-UGPR will coordinate communications requirements to allow WAPA-UGPR visibility for control and operation of Moorhead's BES Facilities or other transmission facilities.

10.2 Moorhead's BES Facilities or other transmission facilities that are equipped with breakers and/or protective relaying equipment shall be equipped with a Remote Terminal Unit (RTU).

10.3 Moorhead's BES Facilities and other transmission facilities not currently equipped with a RTU and requiring a device under this Procedure shall be modified or upgraded with a RTU by Moorhead as soon as practical, but no later than two

8

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Agenda Item #14.

years from the effective date of this Procedure. Moorhead will provide notification to WAPA-UGPR upon completion of activities.

10.4 WAPA-UGPR will provide to Moorhead a list of RTU points that it deems necessary to meet its obligation as a TOP for Moorhead's BES Facilities and for conformance to WAPA-UGPR's operational procedures in Exhibit Band SCADA Conditioning Guidelines. Moorhead will provide WAPA-UGPR with a RTU points list for each BES Facility and other substation or tap under this Procedure for which WAPA-UGPR will have dispatching jurisdiction or operational control. Following a review of the lists provided, Moorhead agrees to provide, at its own expense, the necessary RTU points, communications equipment and channel(s) from the Moorhead RTUs to provide the required capability for TOP control and indication functions to WAPA-UGPR's Primary and Alternate Control Centers.

11. Transmission Operations Planning Support

11.1 WAPA-UGPR Transmission Planning Staff will provide the operational studies support necessary for TOP responsibilities performed by WAPA-UGPR for the BES Facilities owned by Moorhead and will coordinate with Moorhead in regard to these studies. Operational studies support includes studies such as current day, next day, and seasonal study obligations and establishing System Operating Limits for the operating horizon per the methodology established by the RC.

11.2 WAPA-UGPR will coordinate the development of Transmission Reliability Margins (TRM) and Capacity Benefit Margins (CBM) for Available Transfer Capability (ATC) paths/flowgates that are WAPA-UGP paths/flowgates, if required, taking into consideration applicable studies and resource adequacy requirements. WAPA-UGPR will notify appropriate entities and maintain adequate documentation, as required. TRM and CBM values may also be developed by Southwest Power Pool, Inc. (SPP) for SPP maintained paths and flowgates.

12. NERC and Regional Reliability Organization Compliance Coordination

12.1 WAPA-UGPR and Moorhead understand that WAPA-UGPR will only be responsible for compliance with all NERC Reliability Standards relating to the TOP function as it pertains to the operation of Moorhead's BES Facilities outlined herein.

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Agenda Item #14.

12.2 WAPA-UGPR and Moorhead will cooperate in making available to each other information as may be required to comply with FERC, NERC, MRO, SPP, or any successor organization's compliance reporting requirements or each organization's compliance responsibilities applicable to their respective NERC registered function(s).

13. Joint Operating Committee

WAPA-UGPR and Moorhead will establish a Joint Operating Committee to maintain and update this Procedure and to address coordination issues related to this Procedure. Each Party will designate one representative and one alternate to the Joint Operating Committee. Each Party shall notify the other Party of its appointment in writing. Such appointments may be changed at any time by similar notice. The Joint Operating Committee shall meet as necessary, but not less than once each calendar year, to carry out the duties set forth herein. The Joint Operating Committee shall hold a meeting at the request of either Party, at a time and place agreed upon by the representatives. The Joint Operating Committee shall perform all of its duties consistent with the provisions of this Procedure. Each Party shall cooperate in providing to the Joint Operating Committee all information required in the performance of the Joint Operating Committee's duties. All decisions and agreements, if any, made by the Joint Operating Committee, shall be evidenced in writing. The duties of the Joint Operating Committee shall include the following:

• Establish data requirements and operating record requirements.

• Review the requirements, standards, and procedures for data acquisition equipment, protective equipment, and any other equipment or software.

• Annually review the one (1) year forecast of maintenance and planned outage schedules of BES Facilities and other transmission facilities that will impact the other Party.

• Coordinate the scheduling of maintenance and planned outages of transmission facilities that will impact the other Party.

• Ensure that information is being provided by each Party regarding equipment availability.

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Agenda Item #14.

• Review all future additions or changes to the NERC and/or Regional Reliability Standards and Requirements as they relate to the TOP functions performed under the Contract and this Procedure.

• Perform such other duties as may be conferred upon it by mutual agreement of the Parties.

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Agenda Item #14.

IN WITNESS WHEREOF, the Parties have caused this Procedure to be executed by

their respective authorized officials.

(SEAL)

Attest:

By

Title


By_~~~~~~~~~~~-

Title Vice President of Operations

for Upper Great Plains Region

Address 1330 41st Street SE -------------

Watertown, SD 57201

Date ------------- -

CITY OF MOORHEAD, MINNESOTA

By

Title Mayor

Address 500 Center Avenue, PO Box 779

Moorhead, MN 56561-0779

By

Title City Manager


Moorhead 1 MN 56561-0779

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Agenda Item #14.

(SEAL)

Attest:

By __________ _

Title ----------

MOORHEAD PUBLIC SERVICE

By: ______________ _

Title: Commission President -----'-----------



By: _ _ ____ _______ _ _

Title: - - ----"'C..;;;;..o.;...;..m""""m'-'-i;..;;;..ss"""'i..;;;;..o.;...;..n-=S-=e..;;..;cr__::e-=ta=r_._y ___ _

Address

13

500 Center Avenue, PO Box 779


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Agenda Item #14.

Exhibit A Moorhead BES and Other Facilities

Moorhead Owned/Responsible BES Substations, Lines and Associated Equipment under WAPA-UGPR Dispatch Jurisdiction

Substation/Line Moorhead Equipment Operated by WAPA-UGPR

Facility Voltage Includes:

Southeast-Centennial Line Line Switch 1510 115kV

Northeast-Opportunity Line Line Switch 1504

11SkV Line Switch 1503

Brookdale PCB CB8 Brookdale Switch OS48

Brookdale Substation Brookdale Switch OS49

11SkV Brookdale PCB CB7 Brookdale Switch OS45 Brookdale Switch OS46

Centennial PCB CB3 Centennial Switch 1511 Centennial Switch OS25

Centennial Substation Centennial PCB CB4 115kV Centennial Switch OS28 Centennial Switch OS29 Centennial Switch OS30

Moorhead MOS 181 Moorhead PCB 282 Moorhead Switch 281 Moorhead Switch 283

Moorhead Substation Moorhead Switch 285 230kV Moorhead MOS 382 Moorhead Switch 383 Moorhead MOS 482 Moorhead Switch 483

Moorhead Switch 363 Moorhead Switch 463 Moorhead Switch 369 Moorhead PCB 1162

Moorhead Substation Moorhead Switch 1161

115kV Moorhead Switch 1163 Moorhead Switch 1169 Moorhead PCB 1262 Moorhead Switch 1261 Moorhead Switch 1263

Northeast PCB CBS Northeast Switch OS33 Northeast Switch OS34

Northeast Substation Northeast PCB CB6 11SkV Northeast Switch OS31 Northeast Switch OS32

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Agenda Item #14.

Opportunity PCB9 Opportunity Switch DSSO Opportunity Switch DSSl Opportunity Switch DS52

Opportunity Substation Opportunity Switch DS53 llSkV Opportunity PCB CBlO Opportunity Switch DS54 Opportunity Switch DSSS Southeast PCB CBl Southeast Switch DS35 Southeast Switch DS36

Southeast Substation Southeast Switch DS37 llSkV Southeast PCB CB2 Southeast Switch DS38 Southeast Switch DS39

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Agenda Item #14.

Exhibit B

WAPA-UGPR Operational Procedures List

1. Western Area Power Administration Power System Operations Manual -Chapter 1- Power System Switching Procedure

2. Western Area Power Administration Power System Operations Manual -Chapter 2 - Authorization for Power System Switching Personnel

3. WAPA-UGPR Operating Procedures (Relating to the TOP function)

a. Communication Process b. Call Outs c. Outage Coordination - Requests, Approvals, and Denials d. Switching e. Energization of Equipment after a Fault. f. NERC TOP & EOP - UGP Real Time Operating Procedures

4. WAPA-UGPR SCADA Conditioning Guidelines

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Agenda Item #14.



SUBJECT: *Approve Promissory Note Related to Land Purchase for Future Substation RECOMMENDATION: Moorhead Public Service respectfully requests that the Mayor and City Council approve the attached Promissory Note related to the purchase of land and easements within Parcels #21.033.2000 and #21.033.3000 for a future substation and transmission of utilities, as approved by the Moorhead Public Service Commission on February 14, 2017. BACKGROUND / KEY POINTS: On February 9, 2016, Moorhead Public Service (MPS) staff received authorization from the Moorhead Public Service Commission (Commission) to negotiate options on parcels of land for future use. MPS staff negotiated the purchase of land and the acquisition of easements with the landowners of Parcels #21.033.2000 and #21.033.3000. On February 14, 2017, the Commission approved the purchase of land and acquisition of easements within Parcels #21.033.2000 and #21.033.3000. The acquisition of these easements and purchase of this land provides MPS with future benefits. Acquiring the easements provides MPS with the ability to control development of the properties abutting transmission easements, so MPS does not encounter conflicts with the placement of transmission lines, as needed in the future. Purchasing the land provides MPS with the ability to preserve land for the future placement of a substation when electric loads and growth require MPS to build a substation in the area. The payment terms in the purchase agreement include a promissory note to the seller for deferred payments payable by MPS in 2018 and 2019. City Attorney John Shockley has reviewed and approved the attached Promissory Note. FINANCIAL CONSIDERATIONS: There is no cost to the City of Moorhead. VOTING REQUIREMENTS: Three-Fourths of Council (6) Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.


Moorhead Public Service Commission Bill Schwandt General Manager

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Agenda Item #15.


Agenda Item No. 15.

Department: Public Service Prepared by: Nancy Lund, MPS Administration and Finance Manager Attachments: Draft Resolution

Promissory Note with Bell Bank

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Agenda Item #15.


AGENDA SECTION: Moorhead Public Service

ORIGINATING DEPARTMENT: Public Service


ITEM NO. 15.

ITEM DESCRIPTION: *Approve Promissory Note Related to Land Purchase for Future Substation

PREPARED BY: Lund

DRAFT RESOLUTION

WHEREAS, on February 9, 2016, Moorhead Public Service (MPS) staff received authorization from the Moorhead Public Service Commission (Commission) to negotiate options on parcels of land for future use; and

WHEREAS, MPS staff negotiated the purchase of land and the acquisition of easements with the landowners of Parcels #21.033.2000 and #21.033.3000; and WHEREAS, on February 14, 2017, the Commission approved the purchase of land and acquisition of easements within Parcels #21.033.2000 and #21.033.3000; and WHEREAS, acquiring these easements provides MPS with the ability to control the development of the properties abutting transmission easements, so MPS does not encounter conflicts with the placement of transmission lines, as needed in the future; and WHEREAS, purchasing the land provides MPS with the ability to preserve land for the future placement of a substation when electric loads and growth require MPS to build a substation in the area; and WHEREAS, the payment terms in the purchase agreement include a promissory note to the seller for deferred payments payable by MPS in 2018 and 2019. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead to approve the attached Promissory Note related to the purchase of land and acquisition of easements within Parcels #21.033.2000 and #21.033.3000 for a future substation and transmission of utilities, as approved by the Moorhead Public Service Commission on February 14, 2017.


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Agenda Item #15.



SUBJECT: *Resolution Approving the Sound Amplification Permits RECOMMENDATION: The Mayor and City Council are asked to consider approval of the Sound Amplification Application(s) for the events listed in the resolution as they do not fit the time limits per City Code. BACKGROUND / KEY POINTS: According to the Moorhead City Code, the actual permit granted shall set forth the time limits, the location and other relevant conditions of the permit. No event will be allowed to start before, 11:00 am (8:00 am for sporting events) and all events must end by 10:00 pm on weeknights, and 11:00 pm on weekends. The permit will not be for a period to exceed six hours. When and where warranted, the permit conditions may further restrict the times in order to protect surrounding neighborhoods. FINANCIAL CONSIDERATIONS: There are no costs to the City as it relates to approval of licenses. VOTING REQUIREMENTS: Majority of Quorum Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Administration Prepared by: Michelle French, City Clerk Attachments: Draft Resolution

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Agenda Item #16.A.


AGENDA SECTION: Administration

ORIGINATING DEPARTMENT: Administration


ITEM NO. 16.A.

ITEM DESCRIPTION: *Resolution Approving the Sound Amplification Permits

PREPARED BY: French

DRAFT RESOLUTION

BE IT RESOLVED by the City Council of the City of Moorhead that the City Council does hereby approve the issuance of the following license to the applicant listed below: SOUND AMPLIFICATION APPLICATION ........................................................................ $0

July 29, 2017 – 10:30 am to 9:30 pm: Wedding @ Gooseberry Park SOUND AMPLIFICATION APPLICATION ........................................................................ $0

August 5, 2017 – 5:00 pm to 1:00 am: Wedding @ Ushers House SOUND AMPLIFICATION APPLICATION ........................................................................ $0

August 26, 2017 – 10:30 am to 9:00 pm: Awaken the Dawn Regional @ Gooseberry Park

SOUND AMPLIFICATION APPLICATION ........................................................................ $0 September 7, 2017 – 10:00 pm to 12:00 am: MSUM After Party @ Football Field PASSED: July 24, 2017 by the City Council of the City of Moorhead.

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Agenda Item #16.A.



SUBJECT: *Resolution to Waive Bonding Requirements and Authorize Issuance of Replacement Check RECOMMENDATION: The Mayor and City Council are asked to consider a resolution to waive the bonding requirements and authorize the issuance of a replacement check. BACKGROUND / KEY POINTS: A Lost Instrument Affidavit has been submitted to the City of Moorhead requesting that the Mayor and Council waive the bonding requirement as it relates to the issuance of a replacement check. Minnesota Statute 471.415 states an indemnifying bond in a sum equal to the amount of the replacement check is to be provided to the City; however, the governing body of the city may, at its discretion, dispense with such requirement. FINANCIAL CONSIDERATIONS: The replacement check will be issued in the previous amount and the outstanding check will be voided; therefore, the net effect is zero. VOTING REQUIREMENTS: Majority of Quorum Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Finance Prepared by: Michelle French Attachments: Draft Resolution Lost Instrument Affidavit

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Agenda Item #17.



ORIGINATING DEPARTMENT: Finance


ITEM NO. 17.

ITEM DESCRIPTION: *Resolution to Waive Bonding Requirements and Authorize Issuance of Replacement Check

PREPARED BY: French

DRAFT RESOLUTION

WHEREAS, an affidavit has been filed with the City of Moorhead indicating the following checks have been lost and/or destroyed: Payee Date Check # Amount

JC Concrete 6/14/17 260110 $5,220.00

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead that the City Council does hereby approve issuance of a replacement check to the aforementioned in the amount as stated; and further resolves that the bonding requirement, in accordance with Minnesota Statute 471.415, Subd. 2, be waived for the issuance of this replacement check.


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Agenda Item #17.

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Agenda Item #17.

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Agenda Item #17.



SUBJECT: *Resolution to Approve Revised Meeting Schedule for 2017 RECOMMENDATION: The Mayor and City Council are asked to consider the approval of a revised meeting schedule for 2017. BACKGROUND / KEY POINTS: Regular meetings of the City Council are typically held on the second Monday of each and every month. Committee of the Whole meetings of the City Council have typically been held on the fourth Monday of each month. The proposed schedule is to hold regular meetings of the City Council on the second and fourth Monday of each month and Committee of the Whole meeting topics will be combined with the regular meeting on the fourth Monday of each month. As a result, the City of Moorhead, City Council will no longer be holding separate Committee of the Whole Meetings. City Council Meetings will continue to commence at 5:30 p.m. in the Council Chambers of City Hall in the City of Moorhead, unless otherwise noted. Attached is a list of the remaining 2017 meetings. FINANCIAL CONSIDERATIONS: Not applicable. VOTING REQUIREMENTS: Majority of Quorum Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Administration Prepared by: Michelle French, City Clerk Attachments: Draft Resolution 2017 City Council Meetings

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Agenda Item #18.





ITEM NO. 18.

ITEM DESCRIPTION: *Resolution to Approve Revised Meeting Schedule for 2017

PREPARED BY: French

DRAFT RESOLUTION

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead, Minnesota, does hereby set regular meetings of the City Council for the remainder of 2017 the second and fourth Monday of each and every month and Committee of the Whole meeting topics will be combined with the regular meeting on the fourth Monday of each month. Said meetings will commence at 5:30 p.m. in the Council Chambers of City Hall in the City of Moorhead, unless otherwise noted. When the regularly scheduled meeting of the City Council falls on a designated holiday, the meeting will take place the following day.


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Agenda Item #18.

Meeting Date Meeting Type Monday, August 14 City Council Monday, August 28 City Council Monday, September 11 City Council Monday, September 25 City Council Monday, October 9 City Council Monday, October 23 City Council Monday, November 13 City Council Monday, November 27 City Council Monday, December 11 City Council Monday, December 26 City Council

PROPOSED:

2017 City Council Meetings

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Agenda Item #18.



SUBJECT: Resolution authorizing the City of Moorhead to participate in the Minnesota GreenStep Cities Program RECOMMENDATION: The Mayor and City Council are asked to consider a resolution authorizing the City of Moorhead to participate in the Minnesota GreenStep Cities Program. BACKGROUND / KEY POINTS: Minnesota Pollution Control Agency (MPCA)’s GreenStep Cities Program is a free and voluntary program that provides a pathway to help cities achieve sustainability goals through implementation of best practices focused on cost savings, energy use reduction and innovation. The noted benefits include a resilient community, efficient use of resources, healthier environment and active community members. The program has developed 29 best practices (BPs) that include approximately 175 unique actions for cities to implement encompassing five main topics: 1) Buildings & Lighting, 2) Land Use, 3) Transportation, 4) Environmental Management and 5) Economic & Community Development. Cities that implement established minimums of best practices will reach thresholds for Recognition Steps 1 through 5 for participating communities. This is akin to the points systems for fire ratings for fire hazard insurance or the FEMA hazard reduction steps for flood insurance premium discounts, except GreenStep is not tied to a specific public or private cost center, but incorporating the GreenStep best practices into municipal operations may result in energy savings, environmental benefits, and community marketing opportunities. Moorhead falls into the city category ‘A’ of the GreenStep program based on population and a number of criteria related to city operations. Category ‘A’ cities have the following Step increments:

• Step 1 – Adopting a resolution • Step 2 – Implementation of a minimum of 8 best practices • Step 3 – Implementation of a minimum of 16 total best practices (8 additional BPs) • Step 4 – Measure and report on 15 city performance metrics • Step 5 – Show improvement on city performance metrics

This program is intended to encompass an entire city including many different departments including:

• Public Works (fleet/facilities/trails/forestry/solid waste-recycling), • Engineering (stormwater/wastewater/living streets/traffic signals), • Transit (fleet/access/mobility options), • Parks (trails), • Public Service (water/electricity/streetlights/renewable energy), • Planning & Neighborhood Services (planning/zoning/community development), • Economic Development (benchmarks/green business development/business synergies)

and • Administration (purchasing).

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Agenda Item #19.


Agenda Item No. 19.

Moorhead has already implemented a number of best practices and others are in progress. Staff and financial resources would be required to fully document and advance along Steps 2-5. The program suggests designating a project coordinator and creating a staff-level committee be formed to accurately inventory existing accomplishments, and identify actions to be implemented that will contribute to accomplishment of the outlined best practices. FINANCIAL CONSIDERATIONS: There is no expenditure required to enter the GreenStep Cities program. Costs of implementation of the program are yet to be determined. It is envisioned that there would be an evaluation of costs and benefits of replacing or retrofitting equipment and changing procedures as part of an ongoing City service delivery review. Some of the GreenSteps activities may have little to no cost to implement, others may have upfront costs but result in long term operational savings, others may not be measurable in financial terms. VOTING REQUIREMENTS: Majority of Quorum Disclaimer: Voting requirements may be subject to changes in the law, parliamentary procedural matters, or other unforeseen issues. The City Attorney provides opinion on questions of voting requirements in accordance with the Moorhead City Code, Minnesota State Statues, and parliamentary procedure.



Department: Administration Prepared by: Christina M. Volkers, City Manager Attachments: Draft Resolution Examples of GreenStep Cities’ Initiatives

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Agenda Item #19.





ITEM NO. 19.

ITEM DESCRIPTION: Resolution authorizing the City of Moorhead to participate in the Minnesota GreenStep Cities Program

PREPARED BY: Volkers

DRAFT RESOLUTION

WHEREAS, Minnesota GreenStep Cities is a voluntary assistance, recognition and challenge program designed to help cities achieve their sustainability and quality-of-life goals. GreenStep is a free, continuous improvement program, managed by a public-private partnership and based upon 29 best practices. Each best practice can be implemented by completing one or more action opportunities, from a list of four to eight action opportunities; and

WHEREAS, the Minnesota GreenStep Cities program provides cost-effective

sustainable development best practices in the following five categories: 1) Buildings and Lighting; 2) Transportation; 3) Land Use; 4) Environmental Management; and 5) Economic and Community Development; and

WHEREAS, uncertainty in energy prices and the transition away from fossil fuel energy

sources present new challenges and opportunities to both the City of Moorhead and to the economic health of its citizens and businesses; and

WHEREAS, local governments have the unique opportunity to achieve both energy use

and climate changes gas reductions and cost savings through building and facilities management; land use and transportation planning; environmental management; and through economic and community development; and

WHEREAS, steps taken toward sustainable solutions aim to improve community quality

of life, building community capital and increasing government efficiency, accountability and transparency; and

WHEREAS, the Minnesota GreenStep Cities program assists in facilitating technical

assistance for the implementation of these sustainable development best practices; and WHEREAS, a broad coalition of public and private stakeholders including the League of

Minnesota Cities, the MPCA, Office of Energy Security and CERTs responded to the 2008 legislation by establishing the Minnesota GreenStep Cities program to provide a series of sustainable development best practices focusing on local government opportunities to reduce energy use and greenhouse gases;

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Agenda Item #19.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Moorhead,

Minnesota does hereby authorize the City of Moorhead to participate in the Minnesota GreenStep Cities program that offers free, voluntary continuous improvement framework. Passage of this participation resolution allows the City to be recognized as a Step One GreenStep City. Be it further resolved that the City:

1. Appoints the City Manager or designee to serve as the City’s GreenStep coordinator for best practice documentation/implementation; and

2. Will facilitate the involvement of community members and other units of government as appropriate in the planning, promoting and/or implementing of GreenStep Cities best practices; and

3. Grants to the GreenStep program’s coordinator read-only access to the City’s B3 Benchmarking Database so as to facilitate analysis and cost-savings advice to the City regarding its buildings’ energy use; and

4. Will claim credit for having implemented and will work at its own pace toward implementing GreenStep best practices that will result in energy use reduction, economic savings, quality of life improvement, reduction in the City’s greenhouse gas footprint, and recognition by the League of Minnesota Cities as a GreenStep City. An on-going summary of the City’s implementation of best practices will be posted by the City on the Minnesota GreenStep Cities web site.


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Agenda Item #19.

MN City/County PopulationDate

Joined

Step/

Category

Total

Completed

Actions

GreenStep Best Practices Used to Achieve Current Step Level

Specific Actions (Moorhead progress highlighted)

Inver Grove

Heights/Dakota

34,857 2016 1/A 2 • Passed resolution

Mankato/

Blue Earth

41,044 2013 2/A 58 • Buildings and Lighting

o Efficient Outdoor Lighting and Signals

o Building Redevelopment

• Land Use

o Mixed Uses

• Transportation

o Mobility Options

• Economic & Community Development

o Renewable Energy

• Replaced traffic signals with LEDs

• Adopted urban design guidelines to facilitate infill, redevelopment, and adaptable buildings

• Has downtown zoning districts, including mixed use commercial/retail main levels and residential secondary levels

• Promotes walking, biking, transit via route maps, signage, benches, shelters, park & ride lots, real time arrival data

streaming, offers transportation fringe benefits, documents increase in bike facilities, racks, stations, showers, recognized as

walk friendly/bike friendly community, and prominently identifies mobility options

Richfield/

Hennepin


o Efficient Existing Private Buildings

o New Green Buildings


o Building Redevelopment

• Land Use

o Comprehensive Plans

o Resilient City Growth

• Transportation

o Living Streets

• Environmental Management

o Urban Forests

o Stormwater Management

o Parks & Trails

o Efficient Water and Wastewater Systems

• Has marketing to promote residential energy/water use reduction and energy efficiency including citizen workshops, door‐

to‐door canvassing, and $50 home energy visits with energy‐efficient products and installation (i.e., thermostats,

weather stripping, showerhead, etc.) MPS HAS REBATE INCENTIVES.

• Integrates green building best practices information and assistance into the building permit process

• Rehabbed seven foreclosed homes to Minnesota’s Housing's Green Communities standards

• Provides a financial incentive to private parties who build a new house that qualifies for green certification

• Requires energy efficient, Dark‐Sky compliant new/replacement outdoor lighting fixtures on public/private lighting

• Adopted master plans with design standards for all major commercial areas, including a master bicycle plan

• Regulatory ordinances comply with comprehensive plan, zoning ordinances reference comprehensive plan

• Coordinate comprehensive plan with Metro Council on regional issues

• Limits barriers to higher density housing in zoning

• Modified streets to be in compliance with city’s complete streets policy (i.e., gray sidewalk, multi‐purpose trail, bike lanes,

vegetation boulevards, lane reduction, etc.).

• Certified as a Tree City USA and has certified tree inspectors and arborists to protect trees

• Adopted ordinance for GreenStep‐suggested stormwater infiltration/management strategies and created a stormwater

utility that uses variable fees to incentivize enhanced stormwater management, includes education

• Improved connectivity of parks, trails, and open spaces and budgets for a network of parks and playgrounds in new

development areas; 100% of all residents are within ½ mile of park or protected green space

• Wastewater/water treatment facilities are part of Xcel Energy’s peak shaving program and all water used for backwashing

form from filter presses is recycled

Brooklyn Center/

Hennepin



• Transportation

o Living Streets

• Replaced traffic signals with LEDs

• Partnering with park district to design and construct a trail connections

St. Louis Park/

Hennepin

48,171 2012 3/A 45 • Transportation

o Living Streets

o Mobility Options


o Sustainable Purchasing

o Parks & Trails

o Solid Waste Reduction

• Economic and Community Development

o Benchmarks & community Engagement

• City‐wide recycling collection/system

• Adopted environmentally preferable purchasing policy

• Dedicated GreenStep work group that leads, coordinates, and reports to community & Environmental Commission

produces annual sustainability report

Cottage Grove/

Washington


o Efficient Existing Private Buildings


• Transportation

o Living Streets


o Renewable Energy

• Three commercial buildings labeled EnergySTAR as a result of documenting their energy use, plus sustainable design

elements in new City Hall

• Coordinated traffic signals with County and MNDOT to reduce idling MOORHEAD IS CURRENTLY 75% COORDINATED

• City code offers density bonus when site plan demonstrates innovative energy conservation efforts (e.g., renewable

energy, earth sheltering)

• Participating in a renewable energy financing program, PACE, for commercial property owners to install energy efficient

equipment

Maplewood/

Ramsey


o Efficient Existing Public/Private Buildings

o New Green Buildings


• Land Use

o Comprehensive Plans

• Transportation

o Living Streets


o Sustainable Purchasing

o Urban Forests

o Stormwater Management

o Parks & Trails

o Septic Systems

o Solid Waste Reduction


o Benchmarks & Community Development

• Reduced plug load in all of its computers and office lighting

• Adopted green building program, energy action plan, energy efficiency and conservation strategy

• Adopted a model for sustainable building renovation policy and language based off the International Green Construction

Code

• Includes ecologic provision in the comprehensive plan to preserve open spaces and minimize fragmentation

• The comprehensive plan has sustainability goals to reduce the city’s carbon footprint

• Installs rain gardens (shallow depression that collects rain water and allows it to infiltrate) with all street reconstruction

projects, also uses penetrable concrete

• Completed Blue Star City stormwater management assessment and recognized for implementing actions therein

• Adopted a subsurface sewage treatment system ordinance based on the Association of Minnesota counties

• Organized garbage collection under one hauler, reducing truck traffic and emissions

Minnesota GreenStep Cities ‐ Population 30,000‐50,000

-152-

Agenda Item #19.

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city council meeting agenda july 24, 2017 - 5:30 pm city

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