HomeMy WebLinkAbout2013/10/28 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
OCTOBER 28, 2013
CITY COUNCIL STUDY SESSION – MEETING CANCELLED
Written Reports
1. Third Quarter Investment Report (July – Sept 2013)
2. Minnehaha Creek Trail
Meeting: Study Session
Meeting Date: October 28, 2013
Written Report: 1
EXECUTIVE SUMMARY
TITLE: Third Quarter Investment Report (July – Sept 2013)
RECOMMENDED ACTION: No action required at this time.
POLICY CONSIDERATION: None at this time.
SUMMARY: The Quarterly Investment Report provides an overview of the City’s investment
portfolio, including the types of investments held, length of maturity, and yield.
FINANCIAL OR BUDGET CONSIDERATION: None at this time.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Discussion
Investment Portfolio Summary
Prepared by: Darla Monson, Senior Accountant
Reviewed by: Brian A. Swanson, Controller
Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
Study Session Meeting of October 28, 2013 (Item No. 1) Page 2
Title: Third Quarter Investment Report (July – Sept 2013)
DISCUSSION
BACKGROUND: The City’s investment portfolio is focused on short term cash flow needs and
investment in longer term securities. This is done in accordance with Minnesota Statute 118A
and the City’s Investment Policy objectives of: 1) Preservation of capital; 2) Liquidity; and 3)
Return on investment.
PRESENT CONSIDERATIONS: The total portfolio value decreased by approximately $10
million this quarter from $63.8 million at 6/30/2013 to $53.8 million at 9/30/2013. The decrease
was in money market funds and available cash. A significant amount of cash was needed in the
third quarter to fund the August 1 debt service and Pay As You Go TIF note payments and the
first two contractor payments for the Louisiana Avenue and Highway 7 construction project.
Because the balances in the lower yielding money market accounts dropped by $10 million, the
overall yield of the portfolio increased slightly to .98% from .85% in the second quarter. Cities
generally use a benchmark such as the two year Treasury (.33% at 9/30/2013) or some similar
measure for yield comparison of their overall portfolio. Long term interest rates still remain very
low, and money market rates have continued to decline. The City has maintained a fairly
consistent yield over the past 12 to 18 months by balancing cash flow needs with short and long
term investment options.
Approximately 30% or just under $16 million of the portfolio is currently held in money
markets. While it is necessary to keep cash available between property tax settlements for on-
going cash flow needs for payroll and operating expenses, a significantly larger amount of cash
will be needed in the upcoming months to fund the progress payments for Louisiana and Hwy 7,
as well as other capital improvement projects including the completion of the City Hall first floor
renovation. Additional cash may also be needed for an upcoming property acquisition by the
EDA. The next property tax settlement will be received on December 3, 2013.
Money market rates are very low, ranging from just .02% and .04% in the 4M Fund and UBS
Money Market respectively, to .10% at Citizens Independent Bank. This does unfortunately
keep the total portfolio yield down, but there are very few options for investing cash short term.
Another 8% or $4.3 million of the portfolio is invested in fixed rate certificates of deposit at rates
ranging from .5% for two years to 1.75% for five years. With rates on bonds continuing to be
very low, purchasing these fixed rate CD’s has helped to keep the portfolio yield stable. There
are 18 CD’s in the portfolio, each with a face value of $200,000 to $240,000, which guarantees
that each CD is insured by the FDIC up to $250,000.
The remaining 62% or approximately $34 million of the portfolio is invested in other long term
securities, including municipal debt ($20 million) and agency bonds ($14 million). Municipal
debt instruments are bonds issued by States, local governments, or school districts to finance
special projects. Agency bonds are issued by government agencies such as the Federal Home
Loan Bank or Fannie Mae. The agency bonds usually have higher interest rates to the final
maturity date in five years, but the issuers have the right to call the bonds at specific intervals
prior to maturity if interest rates decline.
There were no calls, maturities, or purchases in the third quarter.
Study Session Meeting of October 28, 2013 (Item No. 1) Page 3
Title: Third Quarter Investment Report (July – Sept 2013)
Here is a summary of the City’s portfolio at September 30, 2013:
NEXT STEPS: None at this time.
6/30/13 9/30/13
<1 Year 58% 49%
1-2 Years 7% 9%
2-3 Years 9% 12%
3-4 Years 13% 19%
>4 Years 14% 11%
6/30/13 9/30/13
Money Markets $25,757,332 $15,828,299
Commercial Paper $0 $0
Certificates of Deposit $4,298,052 $4,294,641
Municipal Debt $19,717,951 $19,649,715
Agency Bonds $13,992,326 $14,049,732
City of St. Louis Park
Investment Portfolio Summary
September 30, 2013
Institution/Broker Investment Type CUSIP Maturity Date
Yield to
Maturity Par Value
Market Value at
9/30/2013
Estimated Avg
Annual Income
Citizens Indep Bank Money Market 0.10%8,041,468 8,041,468 8,041
4M Fund Money Market 0.02%4,712,359 4,712,359 942
Citigroup/Smith Barney GNMA 36217C4W3 7.16%17,731 17,797 1,274
UBS Muni Debt - Calif State 13063A7E8 10/01/2013 0.78%2,000,000 2,000,120 15,680
UBS CD - Bank of China NY 06425HN85 05/02/2014 0.60%240,000 240,571 1,440
UBS CD - Medallion Bank UT 58403BXU5 05/07/2014 0.60%240,000 240,581 1,440
UBS CD - Apple Bank NY 037830KP0 05/09/2014 0.50%240,000 240,583 1,200
UBS CD - First Bank PR Sant 33764JNF8 10/27/2014 0.80%240,000 240,626 1,920
UBS CD - Doral Bank PR 25811L2L2 12/08/2014 0.85%240,000 240,739 2,040
UBS CD - Amer Exp Cent UT 02587DLS5 01/26/2015 0.85%240,000 240,552 2,040
UBS Muni Debt - Amer Munic Pwr Ohio 02765UER1 02/15/2015 1.54%1,000,000 1,037,300 15,400
UBS Muni Debt - Gilroy, CA 376087CZ3 04/01/2015 1.81%1,125,000 1,163,081 20,363
UBS Muni Debt - Dist of Columbia 25476FLE6 06/01/2015 1.33%1,000,000 1,045,040 13,310
UBS Muni Debt - Calif State 13063BNR9 10/01/2015 2.00%1,000,000 1,031,590 20,000
UBS CD - BMW Bank UT 05568PZ59 10/26/2015 1.05%240,000 240,646 2,520
UBS Muni Debt - Atl City, NJ 048339RR8 12/15/2015 2.70%470,000 474,385 12,690
UBS CD - Barclays Bank DE 06740KFS1 01/11/2016 1.60%240,000 243,977 3,840
UBS Freddie Mac 3134G3PE4 02/24/2016 0.85%1,000,000 1,001,920 8,500
UBS FNMA Step Up 3136FTXU8 12/29/2016 1.25%1,000,000 1,005,910 12,500
UBS FHLMC 3134G3MZ0 02/24/2017 0.89%1,000,000 1,002,200 8,930
UBS FHLMC 3134G3NN6 02/27/2017 0.72%1,000,000 1,000,080 7,220
UBS CD - Discover Bank DE 254671AG5 05/02/2017 1.75%240,000 242,213 4,200
UBS CD - GE Cap Retail Bank UT 36160NJZ3 05/04/2017 1.75%240,000 241,435 4,200
UBS FHLMC 3134G3WV8 06/06/2017 1.01%1,000,000 999,360 10,140
UBS Muni Debt - N. Orange Cty CA 661334DR0 08/01/2017 1.01%1,000,000 985,310 10,110
UBS FNMA step up 3136G0ZV6 08/28/2017 1.17%1,000,000 1,000,840 11,740
UBS CD - Sallie Mae Bnk UT 79545OPE9 08/29/2017 1.70%240,000 238,332 4,080
UBS CD - Sun Natl Bank NJ 86682ABV2 10/03/2017 1.00%240,000 240,439 2,400
UBS CD - Everbank Jacksonvl FL 29976DPB0 10/31/2017 1.00%240,000 239,198 2,400
UBS CD - Comenity Bank DE 981996AX9 12/05/2017 1.25%200,000 198,024 2,500
UBS CD - Banco Popular PR 05967ESG5 12/05/2017 1.10%240,000 238,810 2,640
UBS FNMA 3136G1AJ8 01/30/2018 1.06%1,000,000 988,110 10,630
UBS FHLB 313381JW6 06/27/2018 0.92%1,000,000 1,086,445 9,200
UBS Money Market 0.03%3,074,472 3,074,472 922
22,462,890
Sterne, Agee Muni Debt - Milwuakee Co, WI 602245WW8 10/01/2013 1.50%1,000,000 1,000,030 15,000
Sterne, Agee Muni Debt - Waukegan, IL 942860MT1 12/30/2013 2.95%1,500,000 1,511,130 44,250
Sterne, Agee Muni Debt - Illinois State 4521518U0 01/01/2014 3.25%1,225,000 1,234,984 39,813
Sterne, Agee Muni Debt - Smithfield, RI 832322NN7 01/15/2014 1.35%275,000 276,103 3,713
Sterne, Agee Muni Debt - Outagamie Cnty WI 689900TH1 04/01/2014 2.53%810,000 816,804 20,493
Sterne, Agee Muni Debt - Racine, WI 750046GB4 04/01/2014 0.70%1,010,000 1,031,230 7,070
Sterne, Agee Muni Debt - Van Buren, MI Sch 920729GR5 05/01/2014 3.52%705,000 714,729 24,816
Sterne, Agee Muni Debt - Union Co NJ 906347SC4 06/01/2014 4.04%110,000 110,713 4,444
Sterne, Agee Muni Debt - Smithfield, RI 832322NP2 01/15/2015 1.90%275,000 278,094 5,225
Sterne, Agee Muni Deb - Smithfield, RI 832322NQ0 01/15/2016 2.40%275,000 281,820 6,600
Sterne, Agee Muni Debt - Elmore Cnty AL 28976PAS4 02/01/2016 0.85%1,050,000 1,066,433 8,925
Sterne, Agee Muni Debt - Elmore Cnty AL 28976PAT2 02/01/2017 1.15%1,000,000 1,006,860 11,500
Sterne, Agee Muni Debt - New York, NY 64966HJS0 04/01/2017 1.20%500,000 568,710 6,000
9,897,639
Wells Fargo Muni Debt - State of WA 93974CLV0 08/01/2014 1.33%1,000,000 1,022,320 13,300
Wells Fargo CD - Goldman Sachs Bank NY 38143AGR0 01/12/2015 1.50%240,000 242,261 3,600
Wells Fargo CD - Ally Bank UT 0200SQYM9 01/26/2015 1.15%240,000 242,218 2,760
Wells Fargo CD - GE Capital UT 36160XC62 01/06/2016 1.70%240,000 243,437 4,080
Wells Fargo FHLMC 3134G3HP8 01/27/2016 1.00%1,000,000 1,002,550 10,000
Wells Fargo Freddie Mac 3134G3MP2 08/24/2016 1.00%1,000,000 1,002,510 10,000
Wells Fargo Muni Debt - Fond Du Lac WI Schl 344496JQ8 04/01/2017 1.05%1,000,000 992,930 10,500
Wells Fargo FNMA 3135G0NH2 08/23/2017 0.95%1,000,000 988,890 9,500
Wells Fargo Fannie Mae 3136G04A6 11/21/2017 1.00%1,000,000 986,220 10,000
Wells Fargo FNMA 3135G0TM5 01/30/2018 1.02%1,000,000 983,280 10,200
Wells Fargo Fannie Mae 3136G1AZ2 01/30/2018 1.00%1,000,000 983,620 10,000
8,690,235
GRAND TOTAL 53,822,387 528,241
Portfolio Yield 0.98%
Study Session Meeting of October 28, 2013 (Item No. 1)
Title: Third Quarter Investment Report (July – Sept 2013)Page 4
Meeting: Study Session
Meeting Date: October 28, 2013
Written Report: 2
EXECUTIVE SUMMARY
TITLE: Minnehaha Creek Trail
RECOMMENDED ACTION: No action is needed at this time. City Council will be asked to
consider a Second Cooperative Agreement on November 4, 2013.
POLICY CONSIDERATION: Does the City Council support constructing trails adjacent to
the Minnehaha Creek in partnership with Minnehaha Creek Watershed District?
SUMMARY: The City has been partnering with the Minnehaha Creek Watershed District
(MCWD) since 2009 to complete the steps needed to allow the MCWD to reconstruct a portion
of Minnehaha Creek between Louisiana Avenue South and Meadowbrook Road.
The project design includes a City trail along the creek extending over the entire length of the
project, including a bridge across the creek. In addition, MCWD intends to build a boardwalk
similar to the one at Methodist Hospital, which MCWD would own and maintain. The proposed
trail is included in the Comprehensive Plan and the sidewalks and trails capital improvements
plan for 2014-2015.
The last action by City Council regarding this item was on December 3, 2012. At that time, City
Council approved an easement agreement with MCWD. Also, City Council directed staff to
explore the possibility of MCWD financing the City’s share of construction costs for the
proposed trail and bridge. The City’s share of the costs was estimated by MCWD to be
$500,000. Based on the bid received and a construction contingency of 10%, the current City
cost is expected to be $460,000.
MCWD intends to approve the project and authorize the contractor to begin work in November.
The work would be completed in 2014. In order to proceed, the City and MCWD must execute a
Second Cooperative Agreement that clarifies responsibilities relating to the trail, bridge, and
boardwalk (see attached draft). Also, City Council needs to approve the budget and funding.
FINANCIAL OR BUDGET CONSIDERATION: The City’s budget for the project should be
revised from $500,000 to $460,000. Staff explored having MCWD finance the City’s costs over
five years. MCWD agreed to do so, but City staff does not recommend doing so. Instead, staff
recommends the costs initially be paid for out of the Park Improvement Fund (PIF). The PIF will
be reimbursed once the City sells General Operating Bonds for the Trails and Sidewalk
Plan. The PIF is intended to be a pass through revenue source.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Discussion
Second Cooperative Agreement (draft)
Site Plan
Excerpts of MCWD Reach 20 Trail System Preliminary Design Package
Prepared by: Sean Walther, Senior Planner
Reviewed by: Cindy Walsh, Operations and Recreation Director
Michele Schnitker, Housing Supervisor
Brian Swanson, Controller
Approved by: Tom Harmening, City Manager
Study Session Meeting of October 28, 2013 (Item No. 2) Page 2
Title: Minnehaha Creek Trail
DISCUSSION
BACKGROUND:
Project Location:
The project is located in the Meadowbrook neighborhood. The creek channel between
Meadowbrook Road and Louisiana Avenue was modified and re-routed, mostly on City
property; however, the parcels at 7202 and 7252 Excelsior Boulevard are also included in the
project. MCWD acquired those two parcels in 2010. A billboard was removed from the MCWD
property in October 2012 to allow for construction of new storm water facilities.
Project Background:
The City has been partnering with the Minnehaha Creek Watershed District (MCWD) since 2009
to complete the steps needed to allow MCWD to reconstruct a portion of Minnehaha Creek. The
channel reconstruction, also called a “remeander,” will result in ecological improvements to the
creek’s natural function, storm water improvements that will benefit water quality and reduce
potential flooding, vegetative improvements to reduce invasive species and improve habitat for
native plants and animals. The project also includes canoe landings and trail improvements that
will increase public access to the creek and will be ADA accessible.
The City and Watershed District received a $300,000 grant for the remeander from the Legacy
Fund. These grant funds will be passed through the City to MCWD in accordance with a
Cooperative Agreement approved in 2012.
Project Progress
MCWD’s bid specifications split the work into a Base Bid and an Add Alternate Bid. The Base
Bid included the Minnehaha Creek remeander and storm water pond construction. The Add
Alternate Bid included construction of the asphalt trail, bridge, and boardwalk. Bids were
evaluated based on the combination Base Bid and Add Alternate Bid.
MCWD awarded the Base Bid to Blackstone Contractors, Inc. and the contractor completed the
Base Bid work in May 2013. MCWD had until the end of March 2013 to decide whether or not
to also award Blackstone the Add Alternate Bid. MCWD and Blackstone have negotiated
several extensions to this deadline to award the Add Alternate Bid and Blackstone has held its
unit pricing.
PRESENT CONSIDERATIONS:
Plan Revisions:
MCWD has revised its plans for the boardwalk over the past 10 months. Plan revisions include
building a second pedestrian only bridge over the creek and adding segments of boardwalk.
These additions improve access to the most scenic parts of the creek. Additional costs associated
with these changes will be MCWD responsibility.
Crushed granite walking paths have been added in four locations on the eastern portion of the
project. Three of the these paths stem off of the asphalt trail and connect to Meadowbrook
Manor property to get up to the top of the slope. The fourth path provides a loop out to a
particularly scenic spot called out as “Wet Prairie Glade” in the design plan. These additional
paths are considered part of the trail and included in the City costs.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 3
Title: Minnehaha Creek Trail
Responsibilities
MCWD will manage the construction project and contract with Blackstone to complete the
remaining work. Since the City would own the asphalt trail and easterly bridge, and the project
will be on City property, City staff will provide some oversight of the construction, too.
All of the boardwalks and the westerly pedestrian-only bridge will be paid for, owned, inspected
and maintained by the MCWD. This includes elements that are built upon City land.
The City would pay for, own, inspect, and maintain the asphalt trails and the easterly bridge.
City asphalt trail and easterly bridge would be built to accommodate maintenance vehicles (i.e. a
pick-up truck with plow or police car).
Financing
Based on the bids received by MCWD, the City’s share of the construction costs are expected to
be $415,617, excluding construction contingencies. Staff recommends budgeting 10%
construction contingency for this project for a total budget of $460,000.
City staff explored having MCWD finance the City’s portion of the asphalt trail and easterly
bridge construction costs over a five-year term. MCWD is willing to do so and presented
financing terms for City consideration. However, City staff recommends that the City not pursue
MCWD financing.
Instead, staff recommends the costs initially be paid for out of the Park Improvement Fund (PIF).
The PIF will be reimbursed once the City sells General Operating Bonds for the Trails and
Sidewalk Plan. The PIF is intended to be a pass through revenue source.
Project Chronology:
The collaborative process between the City and MCWD started in 2009. A brief chronology of
the work completed to date includes:
• December 2010: The City, with assistance from MCWD, was awarded a $300,000 grant
from the Minnesota Board of Water and Soil Resources (BWSR) to help fund the
remeander. The funds are available as part of the Minnesota Clean Water, Land and
Legacy Amendment passed in 2008.
• February 2011: The City Council authorized a grant agreement between the City and
BWSR to allow for the grant funds to be used by MCWD to pay for engineering and
construction.
• August 2011: The City and MCWD held a public open house for community review of
the project at the Municipal Service Center. Approximately 15 business owners and
residents attended the meeting.
• November 2011: The MCWD Board held a public hearing on the remeander project at its
offices in Deephaven, and ordered that the project move forward to full engineering
drawings and completion of an Environmental Assessment Worksheet.
• May 2012: The St. Louis Park City Council, as the Responsible Governmental Unit,
authorized distribution of the Environmental Assessment Worksheet (EAW).
• Summer 2012: MCWD met individually with major property owners adjacent to the
project, including Meadowbrook Apartments.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 4
Title: Minnehaha Creek Trail
• August 22nd, 2012: MCWD hosted a second public meeting for neighbors at St. Louis
Park City Hall to provide general information to the public regarding the project and
construction process. Invitations were sent to residents of the South Oak Hill,
Meadowbrook, and Brooklawns neighborhoods. One person attended and was supportive
of the project.
• September 2012: MCWD and City completed the EAW and Conditional Use Permit
process to ensure all regulatory requirements were met.
• October 2012: Construction bids were opened on October 31, 2012.
• November 2012: MCWD awarded the Base Bid to Blackstone Contractors, Inc.
• September-November 2012: The City reviewed and provided comments on the final
construction documents to MCWD. City comments focused on design suggestions
related to reducing, and facilitating better, ongoing maintenance of the trail and bridge.
• November 2012: The City and MCWD executed an easement for access to build and
maintain the project. Also, the City extended an offer to MCWD to reimburse the costs
of the trail and bridge components of the project over a period of time, if MCWD would
finance the initial construction costs.
• December 2012: Blackstone Contractors, Inc. began work on the Base Bid items.
• February 2013: Blackstone completed the stream remeander.
• May 2013: Blackstone completed the remaining restoration and landscaping under the
Base Bid.
NEXT STEPS:
• A Second Cooperative Agreement is needed for the Minnehaha Creek project. City staff
and MCWD will finalize an agreement for City Council consideration on November 4,
2013.
• Final City Council approval of the budget for the trail and bridge project is needed. This
will be included for City Council consideration on November 4, 2013.
• The MCWD Board will consider granting final approval and awarding the revised Add
Alternate Bid to Blackstone. Construction could begin in November 2013 and be
completed in summer 2014.
• MCWD will prepare a Management Plan for the project area for City review and
approval. It will lay out the general expectations for management and maintenance of the
project area in more detail than provided in the cooperative agreements and easements
previously approved.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 5
Title: Minnehaha Creek Trail
DRAFT
SECOND COOPERATIVE AGREEMENT
City of St. Louis Park and Minnehaha Creek Watershed District
REACH 20 RESTORATION PROJECT
This Cooperative Agreement (“Agreement”) is made by and between the Minnehaha Creek
Watershed District, a watershed district with purposes and powers as set forth at Minnesota
Statutes Chapters 103B and 103D (MCWD), and the City of St. Louis Park, a home rule charter city
in the State of Minnesota (City).
Recitals
A. The MCWD and the City previously entered into a cooperative agreement (undated) to
coordinate projects for the restoration and improvement of Reach 20 of Minnehaha Creek within
the boundaries of the City (“1st Agreement”).
B. In addition, on February 8, 2010 (accepted February 23, 2010), the City conveyed to the District
a Conservation Easement filed for record with the Hennepin County Registrar of Titles as
Document No. T4736855 and with the Hennepin County Office of the County Recorder as
Document No. A9489642 (“Conservation Easement”), and on December 3, 2012 (accepted
January 10, 2013), the City conveyed to the District an Easement filed for record with the
Hennepin County Registrar of Titles as Document No. T5032867 (“Easement”), affording the
District temporary and permanent easement rights to construct and maintain such restoration and
improvement projects.
C. Pursuant to the 1st Agreement and aforementioned easements, and to the MCWD’s April 2007
Water Management Plan Update (April 2007) (WMPU), the District has substantially completed a
project to remeander and stabilize the banks of Minnehaha Creek within Reach 20, establish
vegetated riparian buffer, and construct other improvements to improve the water quality of
Minnehaha Creek and manage stormwater flows into the creek.
D. Under the WMPU, the District also will seek opportunities to install trails in conjunction with its
water resource enhancement projects to enhance educational and recreational opportunities
consistent with its resource protection goals.
E. The MCWD and the City wish to provide for the installation and maintenance of riparian trails
(“Trail Project”) in conjunction with the Reach 20 restoration project and enter into this
Agreement to coordinate efforts and clarify roles and responsibilities for the Trail Project.
THEREFORE the City and the MCWD agree as follows:
1.0 INTENT
1.1 Design plans and specifications for the Trail Project, prepared and signed by a professional
engineering consultant to the MCWD, are included as Attachment A hereto and incorporated
herein (the “Facilities”). The Facilities include bituminous trail, boardwalk, bridge crossings, canoe
launch facilities and supporting structures such as, but not limited to, fencing. The Facilities also
may include short sections of trail to the two indicated canoe launches composed of crushed rock,
mulch or other material.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 6
Title: Minnehaha Creek Trail
1.2 The parties intend that on completion of construction, the City will own, inspect and
maintain the sections of bituminous trail, the eastern bridge crossing indicated on Attachment A,
and the canoe launch facilities and trails. The parties expect that these sections will be part of
local and regional pedestrian and bicycle trail facilities.
1.3 The parties intend that the MCWD will own, inspect and maintain the boardwalk sections of
trail and the western bridge crossing. These facilities are intended to provide public access to the
creek and its riparian environment and for primarily pedestrian use. However, the MCWD may
allow these sections to be incorporated into a local or regional trail network as connections
develop to the west of Meadowbrook Road.
1.4 The signed plans and specifications constitute a warranty by the professional engineering
consultant that due care has been exercised in providing for the structural soundness of the
design. They do not constitute a warranty as to the fitness of the bituminous trails or bridge
crossings for the purpose of public use or the conformance of these Facilities to applicable laws or
standards , including but not limited to the fitness of the alignment, width or location of structural
features for use by bicycle, wheelchair or other transportation mode other than pedestrian use .
As underlying fee owner and manager of public recreational lands within its municipal boundaries,
the City accepts responsibility for the fitness and suitability of these Facilities for public use.
2.0 CONSTRUCTION
2.1 The MCWD may proceed to construct the Facilities. Before doing so, it will obtain all
required permits and approvals. The City will cooperate as landowner and will not apply any fees
to permits or approvals that it requires. The MCWD will manage the construction contract, but
will give the City advance notice of all formal pre-construction and construction meetings, which
the City may attend.
2.2 The MCWD’s contract will require that:
(a) The contractor name the City as an additional insured for general liability on a primary
basis and for both ongoing work and completed operations;
(b) The contractor will indemnify the City for the Contractor’s negligent acts and those of
its subcontractors.
(c) The contractor will be responsible to determine the location of and protect all utilities;
(d) The contractor will provide a performance bond for the completion of the Trail Project;
(e) The contractor will comply with local requirements for traffic and site control; and
(f) The contractor will restore or repair any damage to the City’s lands, equipment or
facilities resulting from the contractor’s activities.
2.3 In part, the plans and specifications present typical alignment and cross-section, reflecting
the MCWD’s intent of a designer and staff presence during construction to conform the Facilities
to site conditions and avoid unnecessary tree removal or other impacts to the surrounding
environment. The MCWD in its judgment may direct such refinements with or without field
directive, or by work change directive or change order. Notwithstanding, the City must concur in
Study Session Meeting of October 28, 2013 (Item No. 2) Page 7
Title: Minnehaha Creek Trail
any material adjustment of the bituminous trail alignment or any narrowing of the bituminous
surface to less than eight feet at any point. The City will communicate its decision on any
proposed work change directive or change order without delay. The City engineer is authorized
to make this decision on behalf of the City.
2.4 If a change order or work change directive relating to the Facilities that the City will own
pursuant to paragraph 1.2 above will result in additional contract cost, the City will be responsible
for the additional cost if the cause of the change was unforeseeable or if the City agrees to bear
the cost.
2.5 The MCWD or the City may install informational signage within the Trail Project. The
parties will cooperate as to signage location, size and content, pursuant to such other terms as
may be set forth in the management plan referenced at paragraph 5.3, below. The parties further
will cooperate so that any signage conditions applicable due to the use of state grant funds are
met. Any signage will identify both parties as contributing partners to the Trail Project.
3.0 MAINTENANCE
3.1 On the designer’s certification of substantial completion of the bituminous trail, eastern
bridge crossing, canoe launch facilities, and launch approach trails, the City will own those
Facilities. The City will be responsible for both routine and long-term maintenance of those
Facilities as it judges appropriate.
3.2 The MCWD will own the boardwalk sections and the western bridge crossing, and will be
responsible for both routine and long-term maintenance of those Facilities as it judges
appropriate.
3.3 The parties may coordinate or combine their maintenance activities in the interest of cost
efficiency and other public purposes.
3.4 A party will not authorize any part of the Facilities for public motorized use. Otherwise,
each party may specify conditions of public use of those Facilities that it owns, including but not
limited to whether use will be specified to exclude bicycles and whether the Facilities will be
seasonally maintained, and may use means within its authority to effect those specifications.
Specifically but not exclusively, each party may use signage and barriers as it deems appropriate.
Consistent with each party’s discretion with respect to the Facilities it owns, the parties will
coordinate so that the use conditions each specifies contribute to rational management of the
Facilities as a whole. Each party also retains the discretion to reconstruct or remove the Facilities
that it owns. The parties agree that any distinctions in or constraints on allowed uses made under
this paragraph in order to align public use with the design of the Facilities, the capacity of a party,
and that party’s risk management judgments is non-discriminatory within the meaning of section 5
of the Conservation Easement.
3.5 The District will be responsible for inspection and maintenance of the structural condition
of the boardwalk sections of trail and the western bridge crossing, in accordance with paragraph
1.3, above. As the fee owner of the underlying land and municipal land manager, the City will be
responsible for day-to-day inspection and maintenance of the property where the trail project is
located. This responsibility encompasses all matters not specifically related to the structural
soundness and maintenance of the Facilities owned by the MCWD and includes, but is not limited
to, sanitation, inspection for and addressing obvious hazards resulting from events such as severe
weather, inappropriate or unlawful use, and law enforcement.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 8
Title: Minnehaha Creek Trail
3.6 Each party may cross and recross the Facilities owned by the other party and may operate
motorized equipment thereon to perform its roles and responsibilities under this Agreement. All
maintenance and other activities will be performed in a manner that reasonably minimizes impact
to the surrounding natural environment and to any prior-constructed improvements. In no event
will maintenance disturb vegetation outside of a three-foot-wide corridor on either side of a trail.
A party is responsible for any damage caused to the Facilities owned by the other party as a result
of its activities under this section 3.0.
4.0 COST RESPONSIBILITIES and REMEDIES
4.1 The MCWD is responsible to make payments to the contractor in accordance with the
terms of the construction contract.
4.2 On the designer’s certification of substantial completion of the Facilities to be owned by
the City pursuant to paragraph 1.2, above, the City will be responsible to:
(a) Reimburse the MCWD for any cost assumed by the City under paragraph 2.4, above;
and
(b) Reimburse the MCWD in the amount of $415,617 pursuant to the schedule and other
terms set forth in Attachment B hereto, incorporated herein.
4.3 Except as paragraphs 4.1 and 4.2, above, may provide otherwise, each party is responsible
for the cost of performing its roles and responsibilities under this Agreement.
4.4 Each party agrees to hold harmless, defend and indemnify the other party from and
against that portion of any and all liability, loss, claim, damage or expense (including reasonable
attorney fees, costs and disbursements) that the indemnified party may incur as a result of the
performance of this Agreement due to any negligent act or omission of the indemnifying party or
any other act or omission that subjects it to liability in law or equity. Notwithstanding, this
Agreement creates no right in and waives no immunity, defense or liability limit with respect to
any third party or the other party to this Agreement. This Agreement is not a joint powers
agreement under Minnesota Statutes §471.59 and nothing herein constitutes either party’s
agreement to be responsible for the acts or omissions of the other party pursuant to subdivision
1(a) of that statute.
4.5 Only contractual remedies are available for the failure of a party to fulfill the terms of this
Agreement.
5.0 RELATION TO OTHER AGREEMENTS
5.1 The parties acknowledge that the Conservation Easement and Easement afford the
MCWD all rights necessary for the MCWD to exercise its rights and perform its responsibilities
under this Agreement and in the event of any ambiguity, will interpret the easements accordingly.
5.2 The parties concur that the Trail Project as constructed and maintained in accordance with
this Agreement will not materially impair a Conservation Value within the meaning of paragraph
2.1(c) of the Conservation Easement.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 9
Title: Minnehaha Creek Trail
5.3 The Conservation Easement and the Easement reference a management plan that the
parties will agree to, specifying how they will manage the property on which the Trail Project is
located and the improvements thereon. The management plan has not yet been put into place.
The parties agree that the management plan will be consistent with the construction and
maintenance of the Trail Project in accordance with this Agreement. Notwithstanding, if agreed
to by the parties, the management plan may include terms that more closely constrain
maintenance of the Trail Project or other activity under this Agreement provided they do not
make such activity materially more burdensome for a party.
5.4 This Agreement, and not the 1st Agreement, governs the coordination and work of the
parties on the Trail Project.
6.0 GENERAL TERMS
6.1 Each communication under this Agreement will be made to the following representatives:
MCWD:
Project Manager, Reach 20 Trail Project
Minnehaha Creek Watershed District
15320 Minnetonka Boulevard
Minnetonka MN 55345-1503
City:
City Manager
City of St. Louis Park
5005 Minnetonka Boulevard
St. Louis Park, MN 55416
Contact information will be kept current. A party may change its contact by written notice to the
other party.
6.2 This Agreement is effective on execution by both parties and will remain in effect
indefinitely for successive five-year terms unless and until terminated by the parties by written
amendment.
6.3 A party to this Agreement may not assign or transfer any right or obligation under this
Agreement except by means of an assignment agreement executed by both parties.
6.4 Except as stated in section 5.0, above, this Agreement incorporates all terms and
understandings of the parties concerning the Trail Project.
6.5 An amendment to this Agreement must be in writing and executed by the parties.
6.6 A party’s failure to enforce a provision of this Agreement does not waive the provision or
that party’s right to enforce it subsequently.
6.7 The above Recitals are incorporated into this Agreement.
IN WITNESS WHEREOF the parties execute this Agreement by their authorized officers.
Study Session Meeting of October 28, 2013 (Item No. 2) Page 10
Title: Minnehaha Creek Trail
CITY OF ST. LOUIS PARK
By _________________________________ Date:
Its Mayor
By _________________________________ Date:
Its City Manager
MINNEHAHA CREEK WATERSHED DISTRICT
By _________________________________ Date:
Its President
Approved for form and execution:
____________________________________
MCWD Counsel
Study Session Meeting of October 28, 2013 (Item No. 2) Title: Minnehaha Creek TrailPage 11
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