January 8, 2014 meeting packet

Our Mission is to protect, manage and improve the water resources of Capitol Region Watershed District

Regular Meeting of the Capitol Region Watershed District (CRWD) Board Of Managers, for Wednesday,

January 8, 2014 6:00 p.m. at the office of the CRWD, 1410 Energy Park Drive, Suite 4, St. Paul, Minnesota.

REGULAR MEETING AGENDA

I. Call to Order of Regular Meeting (President Joe Collins)

A) Attendance

B) Review, Amendments and Approval of the Agenda

II. Public Comment – For Items not on the Agenda (Please observe a limit of three minutes per person.)

III. Permit Applications and Program Updates (Permit Process: 1) Staff Review/Recommendation, 2) Applicant Response, 3) Public Comment, and 4)

Board Discussion and Action.)

A) Permit Program/Rules Update (Kelley)

IV. Special Reports – Office Facility Update, Michelle McGuire, CB Richard Ellis

V. Action Items

A) AR: Approve Minutes of the December 18th

Annual and Regular Meeting (Sylvander)

B) AR: Approve Financial Policies Update (Sylvander)

C) AR: Approve Change Order No. 2 for the TBI Realignment Project (Eleria)

VI. Unfinished Business

A. FI: Special Grants (Zwonitzer)

VII. General Information

A) Administrator’s Report

VIII. Next Meetings

A) Wednesday, January 15, 2014 CAC Meeting

B) Wednesday, January 22, 2014 Meeting Agenda Review

IX. Adjournment

W:\04 Board of Managers\Agendas\2014\January 8, 2014 Agenda Regular Mtg.docx

Materials Enclosed

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�Our Mission is to protect, manage and improve the water resources of Capitol Region Watershed District.

DATE: January 3, 2014 TO: CRWD Board of Managers FROM: Mark Doneux RE: Office Facility Update

Background The Building Committee, consisting of Managers Mary Texer, Mike Thienes and Mark Doneux, recommended and the Board approved the selection of CB Richard Ellis (CBRE) as the District’s Real Estate Broker. An agreement was executed in November of 2012 for this project with CBRE. CBRE gave an update on July 24th on a preliminary Needs Assessment Issues CBRE has completed the preliminary Needs Assessment as well as a review of existing facilities. Michelle McGuire will present the findings of preliminary Market Analysis including a financial analysis of three office facility options. Those options include build, buy and lease. Michelle McGuire will conduct a Board Workshop to further refine and clarify the Districts needs and priorities for a future office space. Once this second working session is completed, CBRE will conduct the final Market Analysis and incorporate that analysis into the final Office Needs Survey and Assessment. Action Requested No action requested. For informational purposes only. Provide feedback on findings. enc: Draft �presentation preliminary Market Analysis, CB Richard Ellis W:\01 Administration\Facility Management\2012 Facility Planning\Board Memo Office Facility Update 1-3-14.docx

January 8, 2014 IV. Special Reports A)

Office Facility Update (Doneux)

CAPITOL REGION WATERSHED DISTRICTWorking SessionJanuary 8, 2014

- Review results of September workshop- Space Requirement- Uses- Location- Components- Culture Image

- Build/ Buy/ Lease- Assumptions- Financial Comparison

- Buy Opportunities Visited- A sampling of 4 properties- Buy Analysis

- Next steps

Capitol Region Watershed DistrictAGENDA

Expiration3/31/15

Hold over1.5x Rent$6.25/ SF5,792 Rentable Square Feet

Capitol Region Watershed DistrictLEASE

PROGRAMCapitol Region Watershed District

Today Tomorrow

13 Seats

5 Offices

1 Conference Room 336 SF

2 Assembly 1,373 SF

Locker/Shower 105 SF

Office Support 348 SF

• Plotter/Printer/Copy/IT

Office Welcome 328 SF

• Reception/Break

Toilet Rooms 284 SF

Garage & Office Storage 916 SF

Circulation 632 SF

Building 283 SF

TOTAL 5,792 SF

Note: Items in Green are changes in space usage

Items in Red are changes made after board presentation

23 Seats

7 Offices

2 Conference Rooms 561 SF 3 = 861 SF

2 Assembly 1,373 SF

Locker/Shower 105 SF

Office Support 348 SF

Office Welcome 328 SF

Toilet Rooms 284 SF lgr = 400 SF

Garage & Office Storage 1,196 SF

Circulation 779 SF

Building 354 SF

TOTAL 7,426 SF 8,190 SF

If 2 garage stalls 8,890 SF

EXPANDED USESCapitol Region Watershed District

A - Needs

• Additional Office Seat• Garage Storage• Public Art (in the form of)

Design elementsArchitectureInnovative designRepresentative DesignNot space specific

• Monitoring of DevelopmentsBy Staff

• Bike RackIndoor Storage

B - Wants

Picnic Area

C - Wants

Exterior Demonstration Area

Outdoor Workspace

Requires Discussion

• Public EducationWater FairCould use more space for classesMay require secondary storage/different furnitureTechnologyVideo/Audio/Non obsolescenceKitchenette adjacentPossible Single use assembly space (no conversion)Double assembly spaceVisibility to exteriorLighting control (more locations)

Ambient shading

• Homeowner EducationSimilar to Public Education

• LeadershipTo Staff

• Ground Water Research and Evaluation

By Staff• Assembly and

ConferencingHost Large GroupsSeparate public from private/Badge access to offices

NOTE: Use of same spaces for Public Art, Assembly & Conferencing, Home Owner & Public Education

Assemble with Lighting controls, Ambient lighting & shade control, visibility to exterior

LOCATIONCapitol Region Watershed District

A - Needs

Proximate to public transport

Ample parking

Provide off hours public access

Safe location

B - Wants

Centrally in district

Easily recognized address

Near bike routes

Near central corridor light rail

C - Wants

Near a water resource

COMPONENTSCapitol Region Watershed District

A - Needs

Rain garden and native plantings

if space 400-500 sf

If not space move to priority B

Better lighting and controls

Secure vehicle storage

Strong design

Access to outdoor light

B - Wants

Rain garden and native plantings (if space)

Solar Passive/Active

Light harvesting

Operable Windows

C - Wants

Solar Passive/Active

Indoor vehicle storage

Physical Access to outdoors

What do you want your new image to be? How does it translate to culture?Bright high energyWe want to be here!Designed collaborative space and gathering spaces (open/ closed)• Gathering spaces

– Water cooler discussions– Soft seating

Creative space – inspired• Positive atmosphere• Problem solvingWired with fiberAdaptableCombination contractor/REI Bloomington store“Target Commons” – Target’s Minneapolis staff gathering space

Capitol Region Watershed DistrictCULTURE IMAGE

BUILD/ BUY/ LEASE ASSUMPTIONS

BUILDAssumptions: - Land at 1.5 acres at $10/ SF (location could

force to $20/ SF

- Construction hard/ soft costs at $286/ SF

- 100% loan to value

- Interest rate 5%

- Bond Term 15 years

- Sale cost of 8%

- Appreciation rate 2%

- Discount Rate 6%

- Buyout Value = 90% of Cost + Appreciation Rate

Pros:- Long Term Solution

- Single Tenant Occupant

- Our own Landlord

Cons:- Need to Bond (large cash outlay)

- Lacks expansion/ contraction flexibility

- Removes property from tax role

- Timing may be difficult

BUYAssumptions:

- Purchase Price $1,499,000

- Construction hard/ soft costs at $80/ SF

- 100% loan to value

- Interest rate 5%

- Bond Term 15 years

- Sale Costs 8%

- Appreciation rate 2%

- Discount Rate 6%

- Buyout Value = 90% of Cost + Appreciation Rate

Pros:- Long Term Solution

- Single Tenant Occupant

- Our own Landlord

- Timing is good

Cons:- Need to Bond (large cash outlay)

- Lacks expansion/ contraction flexibility

- Removes property from tax role

LEASEAssumptions:

- $20 out of pocket for Construction hard and soft costs

- Landlord contributes an additional $25/ SF in construction hard and soft costs

- Taxes begin at $3/ SF and escalate at 5% per year

- Rent is calc’d at $12/ SF increasing at 3% per year

- Discount rate is 9%

Pros:- May allow for flexibility

- Timing is good

- No need to bond

Cons:- Need to Bond

- Neighbors may be in control of space

- Not a permanent solution

- Properties change landlords

Overall Assumptions- 10,000 SF- 10 Year hold period/ lease term- Operating Expenses at $8/ SF and escalating at 3%/ year

Build buy leaseBUILD/ BUY/ LEASE FINANCIAL COMPARISON

Build & Own Buy Lease

CF0 0 0 0 CF1 418,489 301,491 230,000 CF2 420,889 303,891 237,500 CF3 423,361 306,363 245,255 CF4 425,907 308,909 253,274 CF5 428,530 311,532 261,567 CF6 431,231 314,233 270,143 CF7 434,013 317,015 279,013 CF8 436,879 319,881 288,188 CF9 439,831 322,833 297,678 CF10 (2,031,839) (1,293,458) 307,494

NPV 1,674,479 1,312,708 1,536,701 Most Expensive NPV Least Expensive NPV (add $120/ SF to equal Build)

11 CBRE | CLIENT NAME | PRESENTATION TITLE

POSSIBLE OPTIONS IN PLAYStats: 7,786 SF

Currently Hope ChestAbout 20 Parking StallsApproximately $800,000

Pros Good locationRecognizable addressOn Public Transportation

Cons: Need to see interiorLimited ParkingNo interior garage

Stats: 17,772 SF (w/ basement), 8,861 SF/ FloorEmpty, was McQuillan PlumbingGood parking on propertyList Price: $495,000 bank owned

Pros: Good locationAccess for interior garage storageGood Parking on siteAdjacent church provides oppt’y for additional parkingOne block from public transit (Selby)

Cons: Stripped of copper, needs major overhaul


POSSIBLE OPTIONS IN PLAYStats: 10,817 SF

Currently multi tenant MOBAbout 40 parking stallsList price $1,499,000

Pros: Good locationOn public transitRecognizable addressNo interior garage but access could be created – needs City OK.

Cons: Multi tenant may create lease issues

Stats: 19,860 SF (15,872 on 1st floor)Single Tenant in arrearsAbout 15 parking stalls List price $775,000

Pros: Good location 1 block from LRTInterior garage possibleHigh bay could make great space

Cons: Parking is on street (15 or so stalls) requires City conversation

2336 Territorial RoadSt. Paul, MN


OTHER OPTIONS REVIEWED

305 Roselawn, Maplewood, 15,100 SF, 2 storyEliminated due to multi tenant situation, suburban office feel, Maplewood address

Jefferson Office Plaza, 901 Jefferson, 11,000 SF, 3 story Eliminated due to multi tenant, low ceilings No room for shop, inability to make a single cohesive space

1101 Snelling, 14,910 SF, 2 storyUnder contract for sale

Habitat for Humanity Building, Minneapolis, 23,186 SF, 1 storyEliminated due to Minneapolis address

661 LaSalle, unknown SF, 1 storyAcross the street from heavy industrial, Rock 10, older warehousing cross dock building

27 Empire Drive, unknown SF, 2 storyFabulous old historic building, in disrepair, Historic Preservation, well off the beaten path

Aldi Foods, unknown SF, believed single storyLittle Canada address, 17,000 SF

693 Raymond, unknown SF, 2 storyOwner unsure of whether he wants to sell. Worth looking at if a decision is made

Crosstown Mechanical, odd layouut, multiple storyMetal building, older shop w/ limited existing office remote & choppy from shop, good parking, land


BEFORE/ AFTER PHOTOS OF ROB’T ST. BLDGCenter for Independent Living


BUY ANALYSIS (4 PROPERTIES)NPV OF BUILD = $1,674,479 ($167/ SF) ON 10,000 SFNPV OF LEASE = $1,536,701 ($154/ SF) ON 10,000 SF

Buy Buy Buy Buyaddress 571 Snelling 688 Hague Becker Pro Bldg 2336 Terr RdSF 7,786 17,772 10,817 19,860 List Price $800,000 $495,000 $1,499,000 $775,000 Sgl Fl SF 7,786 8,861 10,817 15,872

CF0 0 0 0 0 CF1 199,372 326,841 314,324 386,614 CF2 201,240 331,106 316,920 391,380 CF3 203,165 335,500 319,594 396,290 CF4 205,147 340,025 322,348 401,346 CF5 207,189 344,685 325,185 406,555 CF6 209,292 349,486 328,107 411,919 CF7 211,459 354,431 331,116 417,445 CF8 213,690 359,524 334,216 423,136 CF9 215,988 364,769 337,409 428,998 CF10 (783,869) (979,923) (1,324,670) (1,229,937)

NPV $912,709 $1,686,791 $1,383,473 $1,951,057 NPV/ SF $117.22 $94.91 $127.90 $98.24

NPV/ sgl floor SF $117.22$190.36/ $140.56 based on 12K

SF finished $127.90 $123.00

OPEX $$ over 10 $714,062 $1,629,889 $992,038 $1,821,381

Note: Becker Pro Bldg at 10,000 SF was used in Build/ Buy/ Lease Analysis. Difference of 817 SF accounts for difference in NPV.


NEXT STEPS

O +1 952 924 4828C +1 612 720 [email protected]

For more information regarding this presentation please contact:Michelle McGuireSenior Director


Annual Meeting of the Capitol Region Watershed District (CRWD) Board of Managers, for Wednesday,

December 18, 2013 6:02 p.m. at the office of the CRWD, 1410 Energy Park Drive, Suite 4, St. Paul,

Minnesota.

ANNUAL MEETING

I. Call to Order of Annual Meeting (President Joe Collins)

A) Attendance

Joe Collins

Mike Thienes

Shirley Reider

Seitu Jones

Mary Texer

Others Present

Mark Doneux, CRWD

Michelle Sylvander, CRWD

Forrest Kelley, CRWD

Anna Eleria, CRWD

Bob Fossum, CRWD

Nate Zwonitzer, CRWD

Gustavo Castro, CRWD

Stephanie Herbst, CRWD

Elizabeth Beckman, CRWD

Corey Poland, CRWD

Joe Sellner, CRWD

Britta Suppes, CRWD

Lindsay VanPatten, CRWD

Attorney Jim Mogan,

Ramsey County

Public Attendees Bill Barton, CAC

David Arbiet, CAC

Pat Byrne, CAC

Neighbors from Lake

McCarrons Neighborhood

Association:

Jim & Joan Moneur

Rick & Sheery Ssanders

Family & Friends of Jerome

Wagner:

Jan Pariana

Kim Corbey

Steve, Kelli & Mardi Gohla

Ron & Mary Beth Scavo

Susan Jane Cheney

Craig & Elizabeth Lindeke

Dave & Amy Archambaut

Linda Lindeke

Ryan Adam

Shawn Alana

Bill Lindeke

President Collins opened the meeting and introductions around the room. Many visitors were present from the

Lake McCarrons Neighborhood Association along with Friends and Family members of Jerome Wagner.

President Collins asked for additions or changes to the agenda.

Motion 13-230: Approve the December 18, 2013 agenda.

Texer/Jones

Unanimously approved

January 8, 2014 Board Meeting

V. Action Item A) Approve Minutes

of December 18, 2013

DRAFT Regular Board Meeting

(Sylvander)


II. Year in Review and Acknowledgements

Administrator Doneux presented a review of the 15 year history of Capitol Region Watershed District. He

reviewed selected projects and the impact they have had on stormwater. Time was dedicated to awards

presented to staff member Bob Fossum, Board of Manager Mike Thienes for his fifteen years of service.

Family & Friends of Jerome Wagner were present for a special presentation of a memorial plaque in his honor.

A short break was taken after the year in review and awards presentation.

III. Election of Officers and Committee Appointments (Mike Thienes)

Motion 13-231: To elect the officers to serve the Capitol Region Watershed District from December 18, 2013 to

the District’s Annual Meeting in 2014.

Office December 18, 2013-Annual Mtg 2014

President 1 Joe Collins

Vice President Mary Texer

Secretary 1 Seitu Jones

Treasurer 1 Mike Thienes

Education/Information Shirley Reider

Texer/Jones

Unanimously Approved

Personnel Committee (Two Managers)

December 18, 2013 - Annual Mtg 2014

1) Mary Texer

2) Joe Collins

3) Alternate – Shirley Reider

Ramsey Conservation District Board Liaison


1) Seitu Jones

2) Alternate - Shirley Reider

Citizen Advisory Committee Liaison


1) Mike Thienes

2) Alternate - Seitu Jones

3) Alternate – Joe Collins

4) Alternate – Mary Texer

5) Alternate – Shirley Reider

Minnesota Association of Watershed Districts

(State) Liaison:


1) Mike Thienes


3) Alternate – Mary Texer

Finance Committee


1) Mike Thienes

2) Joe Collins

Trout Brook


1) Joe Collins

2) Seitu Jones


Rules Committee


1) Joe Collins

2) Mary Texer

3) Seitu Jones

4) Mike Thienes

5) Shirley Reider

Subwatershed Committee


1) Mike Thienes


Education/Outreach Committee


1) Mary Texer

2) Seitu Jones

3) Shirley Reider

Special Projects/Grants Committee


1) Seitu Jones

2) Mike Thienes

Real Estate Committee


1) Mary Texer

2) Mike Thienes

Motion 13-232: To appoint committee members to serve the Capitol Region Watershed District from December

18, 2013 to the District’s Annual Meeting in 2014.

Texer/Jones


IV. Other Assignments and Duties

Bank/Depository for District Funds, 2014 Manager per diem and mileage reimbursement rate, designation of

the Official newspaper and adopt Conflict of Interest Policy

A) Bank/Depository of Funds 2014

Bank US Bank

Depository of Funds 4M Fund

B) Managers Per Diem 2014

Per Diem $75/meeting

C) Mileage Reimbursement 2014

Mileage $0.560/mile

D) Official Newspaper 2014

Newspaper St. Paul Pioneer Press

The Managers reviewed and signed the conflict of interest policy.

Motion 13-233: To make administrative assignments to serve the Capitol Region Watershed District from

December 18, 2013 to the District’s Annual Meeting in 2014.

Thienes/Texer



V. Annual Meeting Calendar

To set the regular meetings of the Board of Managers of the Capitol Region Watershed District for 6:00 P.M. at

the District office on the 1st and 3

rd Wednesday of each month, with the exception of January and July.

Wednesday, January 8, 2014 – Second Wednesday

Wednesday, January 22, 2014 - Fourth Wednesday

Wednesday, February 5, 2014

Wednesday, February 19, 2014

Wednesday, March 5, 2014

Wednesday, March 19, 2014

Wednesday, April 2, 2014

Wednesday, April 16, 2014

Wednesday, May 7, 2014

Wednesday, May 21, 2014

Wednesday, June 4, 2014

Wednesday, June 18, 2014

Wednesday, July 9, 2014– Second Wednesday

Wednesday, July 23, 2014- Fourth Wednesday

Wednesday, August 6, 2014

Wednesday, August 20, 2014 - Public Hearing for Budget & Levy

Wednesday, September 3, 2014 - Adoption of Preliminary Budget and Levy

Wednesday, September 17, 2014

Wednesday, October 1, 2014

Wednesday, October 15, 2014

Wednesday, November 5, 2014

Wednesday, November 19, 2014

Wednesday, December 3, 2014

Wednesday, December 17, 2014 – 2014 Annual Meeting, Adoption of Final Budget and Levy

Motion 13-234: To set the regular meetings of the Board of Managers of the Capitol Region Watershed District

for 6:00 P.M. at the District office on the 1st and 3

rd Wednesday of each month, with the exception of January

and July.

Jones/Texer


VI. Public Question and Comment Period

There were no public questions or comments.

VII. Adjournment of Annual Meeting

Motion 13-235: Adjournment of the December 18, 2013 Annual Board Meeting at 6:58 p.m.

Thienes/Texer



Regular Meeting of the Capitol Region Watershed District (CRWD) Board of Managers, for Wednesday,

December 18, 2013 7:00 p.m. at the office of the CRWD, 1410 Energy Park Drive, Suite 4, St. Paul,

Minnesota.

REGULAR MEETING

I. Call to Order of Regular Meeting (President Joe Collins)

Joe Collins

Mike Thienes

Shirley Reider

Seitu Jones

Mary Texer

Others Present

Mark Doneux, CRWD

Michelle Sylvander, CRWD

Forrest Kelley, CRWD

Anna Eleria, CRWD

Bob Fossum, CRWD

Britta Suppes, CRWD

Attorney Jim Mogan,

Ramsey County

Public Attendees Bill Barton, CAC

Motion 13-236: Approve the December 18, 2013 agenda with no changes.

Reider/Texer


II. Public Comment – For Items not on the Agenda

There were no public comments.

III. Permit Applications and Program Updates A) Permit # 11-001 Banbro Warehouse – Certification of Completion (Kelley)

Mr. Kelley confirmed construction activity is complete for permit 11-001 Banbro Warehouse. Final inspections

were done in July of 2012 and August of 2013. All soils have been stabilized and proper installation of

permanent BMP’s verified with as-built plans. A maintenance agreement for the onsite stormwater

management practices has been recorded with Ramsey County. At the request of the permittee, the agreement

was submitted for recording and paid for by CRWD, and the fees are being deducted from the surety.

Motion 13-237: Approve Certificate of Completion and authorize return of $8,858 surety for Permit 11-001

Banbro Warehouse.

Reider/Thienes


Permit Program/Rules Update (Kelley)

Mr. Kelley was looking for feedback from the board about staff to be able to issue erosion control permits and if

tabled permits should come before the Board. Mr. Kelley shared that he has discussed erosion control permits

and tabled permits with Attorney Jim Mogan. Mr. Mogan felt both options were within the legal limit. Mr.

Kelley will continue to work with Mr. Mogan.

Special Reports –– No Special Reports


There were no special reports.

V. Action Items

A) AR: Approve Minutes of the December 4, 2013 Regular Meeting (Sylvander)

Motion 13-238: Approve Minutes of the December 4, 2013 Regular Meeting.

Reider/Texer


B) AR: Approve Accounts Payable/Receivables for November 2013 (Sylvander)

Motion 13-239: Approve Accounts Payable/Receivables for November 2013.

Thienes/Texer


C) AR: Authorize Vehicle Lease Agreement with Midway Ford (Sylvander)

Ms. Sylvander reviewed that Capitol Region Watershed District has been leasing vehicles from the City of St.

Paul since 2005. The current vehicles are older and do not meet the needs of all the staff. Staff conducted a

solicitation of quotes and visited dealerships to review cost, inventory selection, service and customizing.

Midway Ford was selected as the dealership for the needs of the District. As the District has evolved and

conducting more permit, BMP site inspections and educational events that requires a more versatile vehicle.

Staff is requesting a 36 month lease for a 2014 Ford Edge with the option to purchase at the end of the lease.

Motion 13-240: Authorize Administrator to execute the lease of a 2014 Ford Edge with Midway Ford .

Texer/Reider


Manager Reider had a question about the buyout at the end of the lease. Ms. Sylvander replied that the buyout

is referring to the light equipment that would be added to the vehicle.

D) AR: Appoint 2014 Citizen’s Advisory Committee (Doneux)

Administrator Doneux reviewed the By-Laws of the Citizen’s Advisory Committee. State statute requires that

the Board of Managers must annually appoint the Citizen’s Advisory Committee.

Motion 13-241: Appoint the following individuals to the District’s Citizen Advisory Committee through

December 2014:

David Arbeit, 1384 East Como Blvd., St. Paul, MN 55117

William Barton, 533 Cretin Ave South, St. Paul MN 55116

Pat Byrne, 243 S Lexington Pkwy St. Paul, MN 55104

Janna Caywood, 1395 Avon St, St. Paul MN 55117

Steven Duerre, 76 Bates Street, St. Paul, MN 55106

Michael MacDonald, 1391 Almond Ave., St. Paul MN 55108

Ted McCaslin, 1550 Carroll Ave., St. Paul MN 55104


Michelle Ulrich, 1561 Lincoln Ave., St Paul MN 55105

Gwen Willems 1880 Tatum Street Falcon Heights MN 55113

Richard Weil 25 Charles Ave, St. Paul, MN 55103

Kathryn Swanson, Apt 4, 1879 Portland Ave, St. Paul, MN 55104

Reider/Texer


E) AR: Approve 2014 Budget Amendments (Doneux)

Administrator Doneux reviewed that Staff and the Board have recommended several minor shifts in funding to

accommodate the Special and Partner Grant Programs. At the September 4th

Board Meeting, amendments were

approved to Transfer $45,000 from fund 430-14881 (CCLRT Redevelopment BMPs) and $65,000 from fund

440-14912 (Stockholm Tree Trench Demonstration) to fund 440-14910 (Special Grants). At the December 4th

Board Meeting, 2014 Partner Grants were approved with an additional $38,500 coming from several different

220- Education/Outreach Project Categories.

$38,500 of the 220-Education Outreach project budgets will be transferred to 210-14143 – Stewardship Grants,

Application Processing and Grant Award.

Motion 13-242: Transfer $45,000 from fund 430-14881 (CCLRT Redevelopment BMPs) and $65,000 from

fund 440-14912 (Stockholm Tree Trench Demonstration) to fund 440-14910 (Special Grants).

Thienes/Texer


Motion 13-244: Transfer $38,500 from fund 220-Education Outreach projects to fund 210-14143 Stewardship

Grants, Grants, Application Processing and Grant Award.

Thienes/Texer


F) AR: Adopt Final 2014 Budget and Levy (Doneux)

Administrator Doneux reviewed the Board has discussed and reviewed the preliminary 2014 Budget and Tax

Levy during several meetings and workshops this summer. A copy of our summary budget and hearing notice

was sent to the affected cities and Ramsey County officials in August. The Citizen’s Advisory Committee

reviewed and provided comments on the proposed 2014 budget and levy at their August meeting. A duly

noticed Public Hearing was held on August 28th

to collect public comment on the proposed 2014 budget and

levy. The Board of Managers must adopt a Final 2014 Budget and Levy Certification before the initial

December 28, 2013 deadline. Based on the Board recommendations, the revised preliminary budget provides

$419,800 for Administration, $1,464,357 for Programs, $702,471 for Projects for a total Operations Budget of

$2,586,628 and $1,936,650 for Capital Improvement Projects. This totals $4,523,278 for a Preliminary 2014

Budget and a resultant tax levy of $2,969,278 which is 11.78% higher than 2013.

Motion 13-243: Approve and adopt the Final 2014 Budget and Levy Certification.

Thienes/Texer



G) AR: Approve NPDES Stormwater Pollution Prevention Plan (Eleria)

Ms. Eleria stated that Capitol Region Watershed District owns and operates the Trout Brook Storm Sewer

Interceptor, which is designated by the State as a municipal separate storm sewer system (MS4). As a regulated

operator of an MS4, the district obtained a five-year MS4 general stormwater permit in 2006 and developed a

stormwater pollution prevention plan (SWPPP) to minimize the impacts of stormwater runoff and protect local

water quality to the maximum extent practicable.

Minnesota Pollution Control Agency reissued the MS4 general stormwater permit in spring 2013, which

became effective on August 1, 2013. CRWD is required to apply for reauthorization to discharge stormwater

under the new MS4 permit by December 30, 2013. The application must include an update of CRWD’s

stormwater pollution prevention program (SWPPP), which has six program categories or minimum control

measures (MCMs): 1) public education and outreach; 2) public participation/involvement; 3) illicit discharge

detection and elimination; 4) construction site runoff control; 5) post-construction management; and 6)

pollution prevention/good housekeeping. CRWD staff has completed the draft SWPPP application, which is

attached for the Board’s review and approval.

In addition, a compliance plan and schedule for the approved Como Lake TMDL must be provided with the

SWPPP application. Ms. Eleria developed a draft compliance plan and schedule that is currently under review

by the other regulated entities who share the Como Lake TMDL categorical waste load allocation with Capitol

Region Watershed District, St. Paul, Roseville, Falcon Heights and Ramsey County. Each entity will submit the

same Como Lake TMDL compliance plan with their MS4 SWPPP application.

Motion 13-245: Approve CRWD MS4 SWPPP Application.

Reider/Texer


H) AR: Approve Technical Services Agreement with the University of Minnesota (Suppes)

Ms. Suppes reviewed in January 2013, Capitol Region Watershed District contracted with Dr. Finlay and Dr.

Janke at the University of Minnesota –Department of Ecology, Evolution, and Behavior (EEB) to perform

analyses of monitoring data. The final report was titled “Summary and Analysis of Water Quality Data from

CRWD’s Stormwater Monitoring Program, 2005-2012” (Janke, 2013), which was presented at the November 6,

2013 Board Meeting.

Ms. Suppes and District staff have been seeking an opportunity to analyze and report on the Villa Park Wetland

System data from 2005-2012 (pre-dredging) and felt the analyses performed by Dr. Janke would be useful in

order to draw conclusions regarding nutrient loading from the Villa system over time. In addition, CRWD

would like to replicate and expand the analyses from Janke (2013) and integrate the results into the 2013

Monitoring Report.

Ms. Suppes CRWD also greatly values the partnership that has developed with the UMN(EEB) and has worked

collaboratively with Dr. Finlay and Dr. Janke to assist their research interests by collecting water quality

samples and flow data at the Arlington-Hamline Underground Facility (AHUG). This data has been utilized by

UMN(EEB) to supplement a study investigating tree nutrient inputs to St. Paul streets to inform street sweeping

activities and reduce nutrient loading to surface waters.


CRWD and the UMN(EEB) developed a scope of work for three major projects. The projects are: (1) Villa Park

Wetland System Analysis (2005-2012); (2) CRWD 2013 Monitoring Report and Climate Analysis; and (3) Tree

Nutrient Inputs to St. Paul Streets. Staff will review the proposed projects with the Board.

Motion 13-246: Authorize the Board President and the Administrator to execute the agreement with the

University of Minnesota for the CRWD-UMN (EEB) 2014 Data Analysis Projects Proposal for an amount not

to exceed $24,683.00, subject to the review of the Ramsey County attorney.

Jones/Reider


I) AR: Approve Personnel Committee Recommendations (Collins/Texer)

The Board recommends that Capitol Region Watershed District staff be granted two additional floating holidays

to be used by January 3, 2014

Motion 13-247: Authorize Capitol Region Watershed District staff be granted two additional floating holidays

to be used by January 3, 2014.

Collins/Texer


VI. Unfinished Business

A. FI: Special Grants (Zwonitzer)

An update on the Special Grants update has been rescheduled.

B. FI: TBI Realignment Update (Eleria)

An update on the TBI Realigment will be scheduled for January 8th

along with an action item.

C. FI: Curtiss Pond Update (Fossum)

Mr. Fossum gave an update on the Curitss Pond. He just recently met with MN DOT and they have no money

to contribute to the project.

VII. General Information

A) CAC Update (Board of Managers)

Bill Barton was in attendance. Mr. Barton suggested at the last CAC Meeting the CAC members be seated at

the table along with Board of Managers and staff. No further update was given.

B) Administrator’s Report

Adminstrator Doneux attended the Minnesota Environmental Ground Water forum on December 17, 2013. The

Department of Natural Resources is looking at more active groundwater permit process. Watershed Districts

may be expected to take a more proactive approach to groundwater. A second meeting is planned for January

8th

, 2014 at the Shoreview Community Center. A Capitol Region staff member will be in attendance.

Administrator Approved or Executed Agreements

There were no new agreements.


Board Approved or Executed Agreements


General updates including recent and upcoming meetings and events

CRWD Staff and Board Managers Joe Collins, Shirley Reider and Mike Thienes attended the MAWD

Annual Meeting and Trade Show, December 5-7, 2013.

Staff will be interviewing candidates for the Water Resource Technician position in December with a

scheduled start date in January.

1) Upcoming events and meetings

a) Next Board Meeting is Wednesday January 8, 2014 from 6:00 – 8:00 pm (upon approval of 2014

calendar)

b) Next CAC Meeting is Wednesday January 15, 2014 from 7:00-9:00 pm. (upon approval of 2014

calendar)

c) Blooming Saint Paul Awards Ceremony, January 27, 2013. Details to come.

2) Project Updates

None at this time

VIII. Next Meeting

A) Wednesday January 8, 2014 Meeting Agenda Review

VIII. Adjournment

Motion 13-248: Adjournment of the December 18, 2013 regular Board Meeting at 7:34 p.m.

Texer/Reider


Respectfully submitted,

Michelle Sylvander

Our Mission is to protect, manage and improve the water resources of Capitol Region Watershed District.

DATE: January 2, 2014

TO: CRWD Board of Managers

FROM: Michelle Sylvander, Office Manager

RE: Approve Financial Policies

_________________________________________________________________________________

Background

As part of the 2012 Management and Compliance Report from the State of Minnesota Audit,

it was recommended that due to personnel changes and an increase in the amount of the District’s

projects, that changes be made to the operation of the internal controls. The recommendation by the

Minnesota State Auditor was that the District Management update its policies and procedures manual to

document significant internal controls that have been implemented or are in the process of being

implemented.

Issues

The Financial Policies and Procedures have been revised and include the following policies:

Fiscal Policies adopted by the Board of Managers on April 19, 2006,

Accounts Payable-Receivable Procedures Adopted by the Board of Managers on August 6, 2007

Fund Balance Policy Adopted by the Board of Managers on December 15, 2011

The Accounts Payable-Receivable Procedures have been revised with district staff titles versus staff

names. New revisions to the Financial Policies and Procedures include: credit card policy, payroll & time

sheets procedures, expense policy, and travel.

Request Action

Approve Financial Policies & Procedures.

enc: Financial Policies & Procedures

W:\04 Board of Managers\Memos\2014\Board Memo Approve Financial Policies 2014.docx

January 8, 2014

Board Meeting

V. Action Items – B) Approve

Financial Policies

(Sylvander)

FINANCIAL POLICIES & PROCEDURES

These Financial Policies and Procedures include:

Fiscal Policies Adopted by the Board of Managers on April 19th

, 2006;

Accounts Payable-Receivable Procedures Adopted by the Board of Managers on August 6th

, 2007; and

Fund Balance Policy Adopted by the Board of Managers on December 15th

, 2011

Board Adopted: January 8, 2014

Capitol Region Watershed District St. Paul, MN Financial Policies and Procedures 2

FINANCIAL POLICIES AND PROCEDURES

TABLE OF CONTENTS

TABLE OF CONTENTS

A. Organizational Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

B. Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

SECTION I. ACCOUNTS PAYABLE & ACCOUNTS RECEIVABLE

A. Accounts Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

B. Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1. Project Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

SECTION II. BUDGET POLICIES, GOALS AND OBJECTIVES

A. Operations & Capital Improvement Project . . . . . . . . . . . . . . . . . . . . . . . . . . 6

B. Fund Balance, Reserves and Contingency – Operations. . . . . . . . . . . . . . . . . 6

C. Fund Balance, Reserves and Contingency – Capital Improvements Projects .6

D. Fund Bonding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

SECTION III. CREDIT CARDS

A. Eligibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

B. Limits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

C. Conditions of Credit Card Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

D. Monthly District Card Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

E. Cardholder Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

F. Records Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

G. Audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

H. Disputed Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

I. Internal Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

J. Lost or Stolen Cards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

K. Termination of Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

SECTION IV. PAYROLL & TIME SHEETS

A. Payroll & Time Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9

SECTION V. EXPENSE POLICY

A. Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

B. Approval & Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

C. Documentation Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

D. Meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

E. Miscellaneous Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


F. Expenses of Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

G. Dues of Professional or Technical Organizations . . . . . . . . . . . . . . . . . . . . . 10

H. Training, Conferences and Seminars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

I. Travel Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


A. Organizational Mission

To protect, manage and improve the water resources of the Capitol Region Watershed District.

The Capitol Region Watershed District is a governmental subdivision of the State of Minnesota. The State

of Minnesota Board of Water and Soil Resources ordered the establishment of the watershed on September

23, 1998. Capitol Region Watershed District covers 40 square miles and includes portions of the cities of

Falcon Heights, Lauderdale, Maplewood, Roseville and Saint Paul. Located within Ramsey County, Capitol

Region Watershed District has a population of 225,000 people. Capitol Region Watershed District drains to

the Mississippi River, its primary water resource. Capitol Region Watershed District lakes include Como

Lake, Crosby Lake, and Loeb Lake in Saint Paul and Lake McCarrons in Roseville.

B. Audit

Each year the State of Minnesota Office of the State Auditor conducts an audit of the financial statements of

the governmental activities and each major fund and related notes to the financial statements. The mission of

the Office of the State Auditor is to oversee local government finances for Minnesota taxpayers by helping to

ensure financial integrity and accountability in local governmental financial activities.

Through financial, compliance, and special audits, the State Auditor oversees and ensures that local

government funds are used for the purposes intended by law and that local governments hold themselves to

the highest standards of financial accountability.

The Reporting Entity:

The basic purposes of the District are defined in the laws that direct its activity:

Chapter 103B: To protect, preserve, and use natural surface and ground water storage and retention systems

to (a) reduce to the greatest extent the public capital expenditures necessary to control excessive volumes and

rates of runoff, (b) protect and improve surface and ground water quality, (c) prevent flooding and erosion

from surface flows, (d) promote ground water recharge, (e) protect and enhance fish and wildlife habitat and

water recreational facilities, (f) secure the other benefits associated with the proper management of surface

and ground water. (Chapter 509, Laws of 1982, Minnesota Statutes Sections 473.875 to 473.883).

Chapter 103D: To conserve natural resources through land use, flood control, and other needs on sound

scientific principles for protection of public health and welfare and provident use of natural resources.

Governance: A Board of Managers operates the Capitol Region Watershed District. The Board is

composed of five members representing different hydrologic areas of the district. Each manager serves a

staggered three-year term and appointed by the Ramsey County Board. The District's boundaries are those

of the drainage area of Capitol Region. The funds and entities relating to the Capitol Region Watershed

District are all funds that are considered to be the responsibility of the Board of Managers.

Basis of Accounting: Accounting for all of the District's activities is centralized under the Administrative

program. This program has been delegated the responsibility for financial control and reporting financial

data.

The accounts of the Capitol Region Watershed District are organized on the basis of funds projects and

account groups. Each fund, project and account group is considered a separate accounting entity. The


operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its

assets, liabilities, fund equity, revenues and expenditures.

Government resources are allocated to and accounted for in individual funds based upon:

1. The purposes for which they are to be spent

2. The means by which spending is controlled.

The District's accounting records are maintained on the modified accrual basis.

SECTION I. ACCOUNTS PAYABLE & ACCOUNTS RECEIVABLE

A. Accounts Payable

Invoices are date stamped on the day they are received. On a weekly basis the Office Manager enters

invoice data into the monthly accounts payable report. All project, engineering, construction, consultant,

grant, purchases and non-typical invoices are scanned and emailed to the project manager for review, coding

and approval when they are received. The project manager must respond to the Office Manager within one

week of receiving the invoice. If there is uncertainty about a specific invoice the project manager is

consulted. Exceptions to this requirement would be recurring monthly or quarterly expenses such as rent,

utilities etc. If staff is unavailable, the Administrator will review invoices. If the invoice is unclear,

incorrect or lacks sufficient detail it is the responsibility of the project manager to contact the vender and

request the necessary detail.

The first Monday of the month, the Office Manager gives the Administrator a folder with all of the invoices

and Accounts Payable Report for review. The following Friday the Office Manager emails the Accounts

Payable Report to the District Accountant to review and enter into the Districts accounting system. The

following week the District Accountant will email the report back to the Office Manager to include it in the

Capitol Region Watershed District Board packet for review. Checks are printed by District Accountant and

couriered or picked up by the Office Manager the third Wednesday of the month for the Board to approve

and sign. After the checks are signed the Office Manager will match the checks with vendors. Invoices will

be marked with a check number and the checks are mailed the third Thursday of the month for payment.

B. Accounts Receivable

The procedures in section I. A. are utilized for accounts receivable as well. To avoid holding checks in the

office, accounts receivable are deposited on the day they are received either by US Mail or taken directly to

US Bank. Deposits of accounts receivable are coded in the same fashion as accounts payable. Upon receipt a

copy of the check is made. A deposit slip is filled out referencing the check number. The back of the check

is endorsed with “For Deposit Only” stamp. The deposit is taken to US Bank. The deposit slip and copy of

the check are stapled together and filed under deposits. The transaction is recorded on the monthly report

submitted to District Accountant with the accounts payable report.

1. Project Manager

The term project manager in this procedure does not represent a new classification of employees but simply

refers to the employee responsible for overseeing a particular project or program.


SECTION II. BUDGET POLICIES, GOALS AND OBJECTIVES

Fiscal Policy #1: The Administrator shall present an initial draft budget and levy plan that reflects what is

needed to fully implement the work plan established by the Board of Managers. The budget and levy may be

adjusted, by the Board through a policy decision by prioritizing the work plan.

A. Operations and Capital Improvement Project Funding

Fiscal Policy #2: The Board will establish and maintain a separate Operations and Capital Improvement

Program funds.

B. Fund Balance, Reserves and Contingency – Operations

Fiscal Policy #3: Establish a single Operations reserve minimum at 50% of the annual operations budget.

There will be a single fund balance for operations. A fund balance for each fund or project in the budget will

not be shown.

C. Fund Balance, Reserves and Contingency – Capital Improvement Projects

Fiscal Policy #4: Establish the CIP fund cash balance (contingency) minimum at 100% of the estimated CIP

budget or $1,000,000, whichever is less. The contingency fund may be used during the course of the year

but must be restored by January 1.

Fiscal Policy #5: Establish a CIP Reserve Fund at $1,000,000.

D. Fund Bonding

Fiscal Policy #6: Bonding for projects in the CIP maybe used under certain circumstances, such as:

1) Funding through tax levy alone would significantly increase the levy,

2) Bond Issue would exceed $500,000, and

3) The project life would exceed 10 years.

Fiscal Policy # 7: Debt service on bonds will be repaid through an ad volorum property tax.

SECTION III. CREDIT CARDS

The Board of Managers authorizes the Administrator and Office Manager to be assigned a District Credit

Card. However, this Policy would apply to all employees of the District who are assigned a Credit Card by

the board.

Conditions set out in this Policy, the relevant Cardholders’ Responsibility statement issued by the Bank

govern the use of any District Credit Card. Cardholders and their supervisors are responsible for ensuring

that they adhere to the District Credit Card policy, thereby ensuring adequate controls are exercised to

minimize the risk that District Credit Cards are used for fraudulent or corrupt purposes.

A. Eligibility. Employees may be eligible to be issued a District Credit Card. Issuance of a credit card

may be based on travel frequently in the course of his/her duties, purchase significant volumes of


minor goods and services for use by the District, or incur regular frequent expenses of a kind

appropriately paid by credit card.

B. Limits. Each card will be limited to a maximum of $2500 for business expenditures ONLY.

Exemptions to this limit will be made on a case by case basis by the Administrator.

C. Conditions of Credit Card Use. The District Credit Card cannot be used:

1) To obtain cash advances from banks, building societies, credit unions, nor automatic teller

machines. This prohibition similarly extends to cash equivalents such as bank checks, traveler’s

checks and electronic cash transfers.

2) For expenses other than those incurred by the assigned officer named on the card.

3) The District Credit Card is to be used only for official District business, not personal expenses.

Charging personal transactions to District Cards is not acceptable under any circumstance.

Cardholder transactions will be scrutinized to ensure compliance with this policy. Any purchases

not authorized shall be the personal liability of the employee who made the purchase.

4) Infractions of the conditions of this Policy could result in cancellation of the card and withdrawal

of District Credit Card privileges.

5) Breaching of this policy can lead to disciplinary action against the employee concerned. In all

cases of misuse, this District reserves the right to recover any monies from the cardholder.

D. Monthly District Card Statements. District Credit Card expenditures must be reconciled with

Accounts Payable within 15 business days of the Statement Date.

E. Cardholder Responsibilities. Cardholders are responsible for the following security measures for

the use of their card:

1) Cardholders must retain transactional evidence to support all charges. An acceptable receipt for

reimbursements of claimable business expenses on the District Credit Card is an original, detailed

dated receipt.

2) Card purchases without receipts are ultimately the responsibility of the user and his/her cost

center(s). A failure to provide receipts or credible explanation for the unsupported expenditure

could result in a debit from the Cardholder’s salary.

3) Reimbursement for return of goods and/or services must be credited directly to the Card account.

No cash should be received by the Cardholder.

4) Lost or stolen Cards must be reported and cancelled immediately. The Office Manager must be

notified within 48 hours of this activity.

F. Records Management. All documentation associated with the payment of a District Credit Card will

be maintained with the Office Manager. Original detailed and dated receipts for all Credit Card

transactions will be retained in the Office Manager’s office.


G. Audit. Audits of cardholder purchases will occur on a monthly basis by the Office Manager. In

addition, external auditors could carry out audits from time to time.

H. Disputed Transactions. Disputed transactions must be resolved with the Supplier and the Bank by

the Cardholder. The Cardholder must notify the Bank immediately for resolution and the Office

Manager must be informed.

I. Internal Monitoring. Transactions will be monitored monthly by the Office Manager. If a

Cardholder has questionable purchases showing on the monthly Statement, this information will be

forwarded to the Administrator for resolution.

J. Lost or stolen Cards. Lost or stolen cards must be reported by the Cardholder immediately. The

Cardholder must also alert the Office Manager to the loss/stolen card to the bank within 48 hours.

K. Termination of Employment. Prior to departure or termination of duties with this Agency, the

Cardholder must reconcile all expenditures on his/her Card account since the last Statement. It is the

responsibility of the departing employee to ensure that his/her account is settled prior to departure.

The card must be surrendered upon termination of employment to their immediate supervisor or to

the Administrator.

SECTION IV. PAYROLL & TIME SHEETS

A. Payroll & Time Sheets

All employees are required to keep a record of their time worked each day. Time worked will not

necessarily be the same as normal business hours; therefore, actual time worked must be recorded.

Time sheets are to be completed for each day. For FLSA exempt staff the requirement to track hours is

for budget and project allocation purposes; for non-exempt staff the requirement to track hours is

for calculation of hours worked for payroll and budget and project allocation purposes. Employees must

show the total hours worked for that day and week, excluding lunch/meal time. Both non-exempt and

exempt employees must record absences due to use of paid time off or Holiday time-off, illness, vacation,

doctor/dentist appointment, holidays, etc. on time sheets. Time must be recorded down to the quarter hour

(.25) increment.

Non-Exempt employees will be paid for actual time worked, excluding any lunch/meal time.

Each employee completing time sheets must complete and sign his or her own time sheet and are

responsible for the honesty and accuracy of the reported working hours. Discrepancies between

reported and actual working hours may lead to disciplinary action up to and including termination.

Dated, completed, and signed time sheets should be turned in promptly at the end of the bi-weekly

period. The District will make changes as may be necessary in the withholding of federal and state taxes or

voluntary deductions from employees paychecks. The District Administrator should be notified immediately

of a change in exemptions, marital status, or change of address. Employees are paid bi-weekly. A workweek

begins Sunday morning and ends Saturday night. Employee attendance at lectures, meetings and training

programs will be considered hours of work if management requires such attendance.

The employees’ time sheet includes a tally of PTO earned and used. Spreadsheets are printed out and signed

by each employee and approved by the Administrator as the employee’s supervisor each pay period.


Employees' pay will be directly deposited into a checking account or savings account, whichever

the employee prefers. Employees will receive a deposit notification slip each payday; the deposit

notification slip will show (1) the gross wages received, and (2) all deductions from gross wages

(e.g. deductions for federal and state income tax, social security (i.e. FICA) and any other

deductions authorized by the employee).

SECTION V. EXPENSE POLICY

A. Objective

This policy provides a uniform system for reporting and reimbursement of ordinary and necessary business

expenses incurred by employees, Citizen Advisory Committee member or Board of Managers. All persons

conducting official business are required to follow this policy. The District will pay or reimburse expenses

that are both reasonable and necessary. are expected to show good judgment in the nature and amount of

expenses incurred while conducting business. Per Minnesota Statute, purchases of alcoholic beverages

cannot be reimbursed. Travel must be by the most direct or normally traveled route unless approved in

advance by the employee’s supervisor. Reimbursement will be limited to the cost of travel by a direct route

or on an uninterrupted basis. All persons conducting official business will be responsible for any additional

costs exceeding the business purpose related expenses.

B. Approval and Responsibilities

All persons conducting official business are required to obtain approval for their expense reports. It is the

responsibility of each individual to understand and comply with the business expense policy prior to

submitting expenses for payment. Any questions or guidance should be directed to the Administrator or the

Office Manager.

By signing an expense report form you are representing to the District that the expenditures incurred are in

accordance with this policy. The completed and signed expense report form with the required documentation

and detailed original receipts should be forwarded to accounts payable for processing.

Upon submission of a proper expense report, all persons conducting official business will be reimbursed by

check for ordinary and necessary expenses incurred while on District business (as described elsewhere

herein). Only the Board of Managers may approve changes to the Expense Policy.

C. Documentation Requirements

A record of expenses is required. All items listed on the expense report must show date, business location

(city and state) and business purpose. Detailed original dated receipts must be attached for all expenses.

Original receipts are required for processing.

D. Meals

Reimbursement will be made from original detailed, dated receipts for the actual cost of meals including

taxes and tips, when away from home or office overnight on District business. Specifically excluded are

alcoholic beverage, entertainment expenses, and any expenses incurred for other persons other than

employees Board of Managers or Citizen Advisory Committee Members.


E. Miscellaneous Expenses

Costs incurred for items of a business nature not provided for above (such as telephone, postage, service

gratuities, small supplies on an emergency basis, etc.) will be reimbursed. Laundry and valet expenses are

allowed when an employee is requested by the District to extend regularly scheduled trips or when an

employee is away from home for extended stays (trips exceeding five days). These items should be detailed

on the expense report and substantiated by applicable receipts.

While away from the office on District business, a reasonable expense for personal telephone calls will be

allowed. Purchases of miscellaneous supplies, software or computer hardware should be purchased through

the appropriate department and not included on employee expense reports. Exceptions must be approved by

management.

F. Expenses of Spouse

Travel and related expenses of a spouse are not allowable.

G. Dues of Professional or Technical Organizations

Dues paid by the District for approved memberships in professional or technical organizations maybe

reimbursable. Dues paid by employees are limited to memberships approved in advance by Administrator or

supervisor. Amounts claimed for reimbursement should be itemized on the expense report and substantiated

by receipts.

H. Training, Conferences and Seminars

Registration fees or similar expenses for District-approved training courses, conferences, seminars and

conventions are reimbursable if approved in accordance with outside seminars, workshops and conference

policy. Tuition refunds for educational assistance are addressed in a separate Human Resource Policy.

I. Travel Policy

As stated in the Personnel Policy Manual dated January 1, 2011:

It is the policy of the District that business travel must be approved in advance and should be

engaged in and reimbursed according to the guidelines below.

W:\02 Budget and Finance\Financial Policies\Financial Policies and Procedures 2013.doc


DATE: December 31, 2013

TO: CRWD Board of Managers

FROM: Anna Eleria, Water Resource Project Manager

RE: Approve Change Order No. 2 for TBI Realignment Project at I-35E/Cayuga

Background

The TBI Realignment Project at Station 53+08.5 to Station 60+48.6 was fully completed in early

November 2013. Construction work was completed under two phases: Phase I from August to October

2012 and Phase II from August to November 2013. Major construction accomplishments include

installation of 162 feet of 12’x9’ box culvert beneath BNSF railroad tracks within 30-hour work

window, installation of an additional 636 feet of box culvert outside of BNSF ROW, constructing

transition sections between the existing and new TBI, and abandoning the old TBI alignment.

Issues

Over the course of the Phase II construction period, CRWD’s contractor, Veit & Company, conducted

additional work items that were necessary because of conflicts with MnDOT’s 35E reconstruction

project or different site conditions than originally anticipated. These work items were either outside the

original scope of work or outside the original budget of the project. The eight additional work items

included: 1) relocating the south rail monitoring equipment; 2) relocating the north rail monitoring

equipment; 3) installing additional safety fence; 4) working around an unmarked BNSF utility line; 5)

additional railroad insurance coverage; 6) additional rental time for dewatering equipment; 7) installing

dewatering pipe trenches and moving materials for MnDOT work; and 8) additional helical pile

sections. Please see the enclosed Change Order No. 2 for a brief description of each item.

Barr Engineering staff has reviewed and is recommending payment of Change Order No. 2. MnDOT’s

Office of Agreements and Contracts has agreed to reimburse CRWD for all eight work items, however,

they have informed CRWD staff that this project will be subject to an audit and MnDOT’s Audit Office

could overturn any approved change order items.

Action Requested

Approve Change Order No. 2 for the TBI Realignment Project in an amount not to exceed $86,068.

enc: Change Order No. 2 for TBI Realignment Project

W:\06 Projects\Trout Brook Interceptor\MN DOT\TBI Realignment - 35E and Cayuga\Board\BM_TBIRealignmentProject_ChangerOrderNo2_01-08-

14.docx

January 8, 2014 Board Meeting

V. Action Item –

C) TBI Realignment Project –

Change Order No. 2 (Eleria)

CHANGE ORDER No. 2 Page 1

P:\Mpls\23 MN\62\2362944\WorkFiles\2012 TBI Realignment\Construction Admin\Payment\PCO's\Change Order No 2\Change Order No 2.doc

DATE OF ISSUANCE: December 16, 2013

EFFECTIVE DATE: December 16, 2013

PROJECT: Trout Brook Storm Sewer Interceptor Realignment Station 53+08.5 to

Station 60+48.6

OWNER: Capitol Region Watershed District

CONTRACTOR: Veit & Company, Inc.

Notification Name and Address: Mr. Blake Remmick

Veit & Company, Inc.

14000 Veit Place

Rogers, MN 55374

ENGINEER: Barr Engineering Co. (Barr)

4700 West 77th Street

Minneapolis, Minnesota 55435-4803

Attn: Nathan Campeau, P.E.

You are directed to make the following changes in the Contract Documents

2-1. Relocation of South Rail Monitoring Equipment

Description: Contractor shall install a pole for total station monitoring equipment on

southern portion of the project.

Reason for Change Order: In July 2013 MnDOT requested that CRWD relocate the total

station used for the track monitoring program due to MnDOT’s planned construction in the

area where track monitoring had been set up for Phase 1 in 2012.

Change in Contract Price: In accordance to Article 10 of the General Conditions and based

on documentation provided in Veit’s July 3 and November 21, 2013 emails, the change will

increase the contract price by $3,621.25.

Change in Contract Time: The change has been completed. The change will not change

the contract time.

2-2. Relocation of North Rail Monitoring Equipment

Description: Contractor shall install the monitoring platform for the rail monitoring program

on a bridge pier on I-35E.

Reason for Change Order: The northern rail monitoring system was initially installed on

the Mississippi Street Bridge during Phase 1 of the project in 2012 . Due to the demolition of

the Mississippi Street Bridge, it was necessary to relocate the monitoring system to a new



platform installed on an I-35E bridge pier during Phase 2 of the project in 2013. The

monitoring equipment was not initially installed on the I-35E bridge pier because the

Mississippi Street Bridge obstructed track monitoring.


on documentation provided in Veit’s June 26, 2013 email, the change will increase the

contract price by $692.


the contract time.

2-3. Installation of Safety Fence

Description: Contractor shall install safety fence to delineate the BNSF 25-foot right-of-

way.

Reason for Change Order: BNSF was not able to provide flagging from August 27 to

August 30, 2013. Due to lack of flagging, BNSF requested that CRWD and Veit install safety

fence delineating the 25-foot BNSF right-of-way. During the period when BNSF flagging

was not available, no personnel were allowed beyond the 25-foot right-of-way.


on documentation provided in Veit’s August 23, 2013 email, the change will increase the

contract price by $1,392.


the contract time.

2-4. Work Around Unmarked BNSF Utility

Description: Contractor shall perform excavation and box culvert demolition around an

unmarked BNSF utility line.

Reason for Change Order: On October 15, 2013, Veit discovered live BNSF utility lines

above the Trout Brook Interceptor box culvert that needed to be demolished. These utility

lines were not marked and were not identified during a BNSF utility locate. Working around

the BNSF utility lines slowed Veit’s progress, resulting in additional charges.


on Veit’s labor and equipment rates, as supplied in their November 22, 2013 email, and based

on Barr’s onsite observation, the change will increase the contract price by $4,958.04.


the contract time.



2-5. Additional Railroad Insurance

Description: Contractor shall purchase three months additional railroad insurance.

Reason for Change Order: Due to the delays associated with demolition of the Mississippi

Street Bridge, and following MnDOT’s authorization to begin the Phase 2 construction, Veit

needed to purchase three (3) months additional railroad insurance beyond what would have

been required had the project not been delayed by MnDOT’s schedule.


on documentation provided in Veit’s July 23, 2013 email, the change will increase the

contract price by $7,576.50. The monthly charge is $2,500 plus a one-time tax and fee charge

of $76.50.


the contract time.

2-6. Dewatering Equipment Downtime

Description: Contractor shall provide idle dewatering equipment for three weeks before

construction.

Reason for Change Order: Veit installed dewatering equipment following MnDOT’s

authorization to proceed with Phase 2 construction. However, due to the delays associated

with demolition of the Mississippi Street Bridge, Veit’s dewatering equipment was idle for

three weeks before the Notice to Proceed was reissued based on MnDOT’s schedule.


on documentation provided in Veit’s June 24 and July 24, 2013 emails, the change will

increase the contract price by $27,198.00. The weekly charge for equipment rental is

$9,066.00, up to a maximum monthly charge of $27,198.00.


the contract time.

2-7. Install Dewatering Pipe Trenches and Move Materials for MnDOT Work

Description: Contractor shall excavate trenches for dewatering pipes and move materials to

facilitate MnDOT construction activity.

Reason for Change Order: Due to project delays associated with demolition of the

Mississippi Street Bridge, MnDOT’s contractors needed access to Veit’s work area during

Veit’s dewatering operations. MnDOT requested that Veit relocate and install their

dewatering pipes in trenches and relocate Veit’s construction materials to allow MnDOT’s

contractors greater access to the site. Veit excavated the trenches and relocated the materials,

as requested, on July 26 and 30, 2013.


on documentation provided in Veit’s August 16, 2013 email, the change will increase the

contract price by $5,803.08.

Table

Change Order No. 2 Documentation

Change Order Item Cost

2-1 Relocation of South Rail Monitoring Equipment $3,621.25

2-2 Relocation of North Rail Monitoring Equipment $692.00

2-3 Installation of Safety Fence $1,392.00

2-4 Work Around Unmarked BNSF Utility $ 4,958.04

2-5 Additional Railroad Insurance $7,576.50

2-6 Dewatering Equipment Downtime $27,198.00

2-7 Install Dewatering Pipe Trenches and Move Materials for

MnDOT Work

$5,803.08

2-8 Additional Helical Pile Lengths $34,826.52

Total $86,067.39

DATE: January 2, 2014

TO: CRWD Board of Managers and Staff

FROM: Mark Doneux, Administrator

RE: January 8, 2014 Administrator’s Report

Administrator Approved or Executed Agreements


Board Approved or Executed Agreements


General updates including recent and upcoming meetings and events

Staff will be interviewing candidates for the Water Resource Technician position with a scheduled start date

in January.

1) Upcoming events and meetings

a) Next Board Meeting is Wednesday January 22, 2014 from 6:00 – 8:00 pm (upon approval of 2014

calendar)

b) Next CAC Meeting is Wednesday January 15, 2014 from 7:00-9:00 pm. (upon approval of 2014

calendar)

c) Blooming Saint Paul Awards Ceremony, January 27, 2013. Details to come.

2) Project Updates

None at this time

W:\04 Board of Managers\Correspondence\Administrator's Report 2014\Administrator's Report 1-8-14.docx


January 8, 2014 meeting packet

Documents

Transcript of January 8, 2014 meeting packet