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02-847Green Sheet ¢ ��� S' 7 y RESOLUTiON G.�. G�a.� 8 `�'� 1� OF SAINT PAtIL, MINNESOTA `� Prese.^.�e3 Ey Re`er_ed To Cc�tte?: ➢2te 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 WHEREAS, the Board of Water Commissioners and the City of 5aint Paul have agreed to the terms and conditions of an aa eement covering direct and indirect central services to be performed by the City for Saint Paul Regional Water Services; and WHEREAS, the Board of Water Commissioners has authori2ed this agreement by approval of Resoiution No. 4842; and WHEREAS, the Board agrees to reimburse the City $828,204 in 2003 for these services; now, therefore, be it RESOLVED, that the proper City officials aze hereby authorized and directed to execute an agreement with the Board of Water Commissioners to provide central services, a copy of the agreement will be kept on file in the Office of Financial Services. Requ>stcd by Depzrt�ent oE: Saint Paul Regional W ater Services �v �rA� /l �..�e� �eneral Manager Form Approved by City At(orney �dop;ed by Cocncil_ Date��� �pp ,�y„� .doption Certi,Fied by Council Sece[ary /'1 1 _ Cl 1 n � -� ' v � c DEp,���,o��,�o��.: DA� �,,,� 113874 St Paul Regional Water Services July 22, 2002 GREEN SHEET No.: CONTACI' PERSON & PHONE: IN�T�n�/DATE �vrslAl�flnT� Bernie R Bullert 266-6274 1 nEPa�cxn�rrr Dm. iL!? � 2 f-oZ4 c[x�covivca MOSfBEONCOUNCII.AGENDA BY(DATE) ASSIGN ? CjTYATTORNEY CITYCLERK i.'HOC FINANCIALSERVDII2. � FINANCIAI.E:s`RV/ACc^TG 1Vi1MBER 3 hIAYOR(ORASST.) FOR ROUTING OADER TOTAL#OFSIGNATOREPAGES 1 (CL�ALLLOCATIONSFORSIGNATURE) AC110N REQUF.S1'ED: City Council approval of an agreement beriveen the Board of Water Commissioners and City of Saint Paul for central services to be provided by the City to the Board in 2003. RECOMMENAATIONS:Approve(A)orReject(R) PERSONALSERVICECONTRACTSM[JSTANSWERTE�FOLLOWINGQUESTIONS: 1. EIas this persodfirm ever worked under a contrac[ (or this deparhnent? PI,ANHING COMMISSION Yes No CIB CONIMITTEE 2. Flas this persodErro ever beeu a city employee? CIVILSERVICECOMMISSION Yes No A_BOard ot Wa[er Commissiocers 3. Does t6is persou/firm possess a skill not normally possessed by any current city employee? Yes No E:cplain all yes aoswers on separate sheet and attach [o green sheet INITIATIl�IG PROBI,EM, ISSUE, OPPORTi31�RTY (Whq Whak ��. �'here, Why). Although no formal agreement between the Board and the City existed unfil April 1999, the Boazd has paid the City direct and indirect costs for central services for over twenty years. The attached agreement between the Boazd and the City establishes what services aze to be performed, how the fee is determined, and the cost per service. The total charge for 2003 Central Services is $828,204. The Board of Water Commissioners authorized this agreement by approval of Resolution No. 4842. Staff intends to amend this agreement each budget year to reflect changes in central service charges. ADVANTAGESIFAPPROVED: A formal agreement for central service charges will exist �� $�„� DISAD VAN1'AGES IF APPRO V ED: � � ��' � � JUL 2 � 2��� None �a��� .'s��������� DISADVANTAGES IF NOT APPROVED: TOTAL AMOi1NT OF TRANSACTION: $828,2U4 COSTIREVENUEBUDGETED: Yec FUNDING SOURCE: 850.28181-0290 ACTIVITY NUMBER 28181 FIlVANCIAL INFORMATION: (EXPLAIIV) aa-�sy� AGREEMENT between Tf�E BOARD OF WATER COMNIISSIONERS and THE CITY OF SAINT PAUL, MIl\NESOTA for CENTRAL SERVICES This agreement ("agreemenY'), made and entered into this � day ofL�� ___ . o ' 2002, by and between the BOARD OF WATER COMNIISSIONERS OF THE CITY OF SAINT PAUL, a Municipal Corpozation under the laws of the State of Minnesota ("Board"), and the CITX OF SAINT PAYJL, MINNESOTA, a home rule charter city under the laws of the State of Minnesota ("City"). WHEREAS, the City currently establishes and charges an annual fee to city departments and the Board, known as a fee for central service costs ("Central Service Charge"), which fee reunburses the City for the costs of benefits, services and other transactions that the Board receives from the City and its various departments; and R'HEREAS, the Board desires to control its expenses, manage its use of the City's central services, and more effectively budget for the annual Central Service Chazge expense; and WHEREAS, the Boazd believes that it can achieve these goals by entering into an agreement with the City for the provision of central services which establishes the annual amount of the Central Service Chazge; and WIIEREAS, the Board and the City entered into an agreement dated April 13, 1999, and an Amendment No. 1 to that ab eement dated December 14, 1999, which together discounted by approximately sixty-six percent (66%) the charges for services provided by the Office ofthe Mayor, the Office of the City Clerk and City Council Administration for the yeazs 1999, 2000 and 2001; and N.\CSEffiCAUBOARDW,GREEMENTSIMiSC\ST PAUL\CENTRLSERV 20�3DOC 1 WFIEREAS, the Boazd and the Ciry did reach an orai agreement on the amount to be paid for said service charges for the year 2002; and WHEREAS, the Boazd and the City desire to enter into an a�eement for the provision of central services to the Board for the year 2003, with the intent that said agreement be asnended each year as part of the following year's budget process; NOW, THEREFORE, in consideration of the terms, covenants, wananties and conditions hereinafter set forth, the parties hereto, intending to be legally bound hereby, mutually agree as follows: Section 1. Central Services. Subject to the terms and conditions of this Agreement, Ciry shall seil, transfer, assign, provide or supply the Boazd those Central Service benefits, supplies, equipment, services, and operations that are sunuuarized and descrabed in E�ibit A, which is attached hereto. Section 2. Term. The term ofthis Agreement shall commence on 3anuary l, 2003 and shall expire on Decembex 3 l, 2003. Section 3. Payment. Subject to the terms and conditions of this Agreement, and in consideration of City's agreement to sell, transfer, assign, provide or supply the Board with the Central Services as summarized and described in Exhibit A, Board agrees to pay to City the sum of eight hundred twenty-eight thousand two hundred and four dollars ($828,204) in year 2003. This payment shail be made in twelve monthly installments in the amount of $69,Q17 by the Board to the City, beginning within thirty (30) days of the Commencement Date of this Agreement. On or be£ore May 15, 2003 and as a part of the 2004 budget determination process, the City and the Board shall review and may adjust the fee in a manner that is mutually acceptable to both parties. The adjustment will be based on the central service rate changes, the local CPI, or some other mutaally agreed upon factor. The amount agreed upon will become the Central Service Charge for 2Q04 and wi11 be specified in an amendment to this agreement. N'\CLERICAUBOARDWGREEMENTSVvI1SC\ST PAUUCENTRISERV 2003.DOC 2 �t Section 4. Termination. T'his ageement may be tenninated in whole or in part in writing by either party in the event of substantial failure by the other party to fulfill its obligations under this agreement throu�h no fault of the terminating parry, provided that no temunation may be effected unless the other parry is given not less than siYty (60) calendar days written notice of intent to ternvnate. 5ecfion 5. Successors and Assigns. All terms, covenants, and conditions of this A�eement shall be binding upon, and inure to the benefit of and be enforceable by the parties hereto and their respective successors, heirs, executors and assigns. This Agreement and the rights and obligations of any party hereunder shall not be assignable except with the written consent of the other parties hereto, which consent shall not be unreasonably withheld. Section 6. Notice. Any notice, request, demand, statement or consent required or permitted to be given hereunder shall be in writing, shall be signed by or on behalf of the party giving notice, and shall be personally delivered or sent by express service, telecopier, or certified or registered mail, return receipt requested, postage prepaid, to the other party to the respective address given herein beiow: If to Board, to: General Manager, Saint Paul Regional Water Services Suite 400 8 Fourth Street East 5aint Paul, MN 55101 If to City: Director, Office of Financial Services 160 City Hall & Court House 15 West Kellogg Boulevard Saint Paul, MN 55102 Any such notice given as aforesaid shall be conclusively deemed to have been b ven and received on the day on which such notice was delivered. Bither party may, from time to time, furnish, in writing, to the other parry, such notice of a change in the address to which notices are to be given hereunder. Section 7. Incorporation by Reference. Exhibit A attached hereto is hereby incorporated by reference and made a part hereof. N'\CLERICAUBOARD�.4GREEMENTS\MiSC\ST PAUUCENTRLSERV 2003DOC Section 8. Waivers and Amendments. Tkris Agreement may be asnended, superseded, canceled, renewed or e�Cended, and its terms or covenants l�ereof may be waived, only by a written instrument executed by the parties and pursuant to the terms of this A�eement. The failure of any party at any time or rimes to require perforxnance of any provision hereof shall in no manner af£ect its right at a later tune to enforce the same. The parties reserve the right by mutual written consent to amend, modify, supersede and cancel this Agreement, or waive the terms or conditions. Section 9. Entire Agreement. This Agreement and the Exhibit attached hereto set forth the entire understanding and agreement between the parties hereto with respect to the subj ect matter hereof and supersede all prior agreements, arrangements and understandings, written or ora1, relating to the subject matter hereof. Section 10. Counterparts. This Agreement may be executed in two or more counterparts, each of which may be deemed an ariginal but together shall constitute but one and the same instrument. Section 11. Severability. This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the application thereof to any person or circumstance, sha11, for any reason and to any ehtent, be invalid or unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby but rather shall be enforced to the extent permitted by law. N:\CLERICAUBOARD�AGREEMENTSU�C�ST_PAULICENTRLSEAV_2003.DOC �� Pi WIT�SS WHEREOF, the parties hereto have caused this A�eement to be executed in their behalf respectively as of the day and year fust above written. APPROVED: BOARD OF WATER COMNIISSIONERS OF THE CITX OF SA1NT PAUL By �,l�t� �f • By M� � Bemie R. Bullert, General Manager ames C. Reiter, President Approved as to form: sy �1SU � ��,t�1 Assistant City Attorney �-� �� anet Lindn en, Secretary CITY �FISAINT PA of Saint Paul Approved as to form: `� � BY �/SGL YI{ . ��,(�l By o Assistant Ciry Attorney Donald J. Luna, ' y Cler By ' • '� � jioi�r�I4R1�S, Director ��^� Of£ce of Financial Services Fttnding: 850-28181-0290 - $828,20� 850-28181-0299 - $170,000 \, N:\CLERICAUBOARDWGREEMENTS�NtBC�5T PAULICENTRLSERV 2003DOC ti T Eghibit A Budget Year 2003 Central Service Benefits, Supplies, Equipment, Services, and Operafions Schedule 11 Equipment Use Charge This CSC is not allocated back to departrnents. The General Fund absorbs these costs. The allocation basis is too difficult to spread based on department/fundJactiviry basis. Central Service Charge = $0.�0 Schedule 3.1 Building Use Charge This CSC is not allocated back to departxnents. The General Fund absorbs these costs. The allocation basis is too difficult to spread based on departmenbfund/activity basis. SPRWS pays its own space costs. Central Service Charge = $0.00 Schedule 4.1 Other Expenditures Financial Forms are not allocated back to departrnents. Forms like check stock, pay instruments, purchase orders and pay vouchers are absorbed by the General Fund. Central Service Charge = $0.00 Suretv Bonds and Municipal Membershi�s aze combined and allocated on a FTE basis. Departments benefit from national, regional, state, or metro memberships in Leab e of Cifles, Association of Metropolitan Municipalities as the membership allows departments access to their special interests; ie Finance and Accounting, Public Works and Water issues, Police and Fire interests. The State Auditor provides overall approval of fmancial recards, consolidating special departments such as HRA or Water through oversight procedures of the city. Surety Bonds are for economy reasons purchased on a citywide basis. The bond does cover SPRWS employees. FTE Based Central Service Charge =$�,700 State Audit: The chazges to audit SPRWS' systems and financial records aze billed by the State Auditor's OfFce and paid directly by SPRWS Central Service Charge = $0.00 N:ACLERICAL�BOARD�AGRE£MENTS�MSC�ST PAULVCENTRLSERV 2003AOC Schedule 5.1 Additional E%penditures Purchasmg services are allocated on a per h basis and benefit departments that have complex bidding needs by spreading costs throughout the city. SPRWS consistenfly benefits more than many other departments. SPRWS does not pay central service costs for purchasing services; it receives and pays a detailed invoice from Contract and Analysis Services once a year. Estimated Direct Charge Central Service Charge — Paid by invoice =$105,000 Schedule 6.1 Messenger Services This CSC is not allocated back to departrnents. The General Fund absorbs these costs. The allocation basis is too di�cult to spread based on departmenUfund/activity basis, although SPRWS does receive benefit from City-wide messenger service. Central Service Charge = $0.00 Schedule 7.1 Building Operations This CSC is not allocated back to departments. The General Fund absorbs these costs. The allocation basis is too difficult to spread based on departmendfundiactivity basis. SPRWS receives no direct benefit, as it has no square footage in either City Hall or the City Hall Annex. Central Service Charge = $0.00 Schedule 8.1 Police Annex Maintenance This CSC is not allocated back to departments. The Generai Fund absorbs these costs. The allocation basis is too difficult to spread based on department/fund/activity basis. (This CSC is specialized with Police and Fire). SPRWS receives no direct benefit. Central Service Charge = $0.00 Schedule 9.1 City Council Administration The Ciry Council provides policy and financial review to department activities, sets Human Resources goals and policies, approves resolufions and budget amendments. The Council reviews ciTy/state issues and contracts. The Council provides members For various boards; Water, Rivercentre, etc.. The City Council is the final decision maker on several SPRWS issues which come before it such as water rates, budget and land sales. FTE Based Central Service Charge =$65,096 N:\CLERICAUBOARDW.GREEMENTSV�I�C\ST_PAUL\CEN"LRLSERV_2003DOC 7 �. Schedule 101 City Clerk The records of council actions aze recorded and maintained on file in this office. The City Clerk makes no record of Board of Water Comznissioners actions. Clerk's Office assists staff with research of City Ordinances and records. Clerk's O�ce assists staff with procedures to have Boazd' s Budget passed. Clerk' s Office assists staff with resolutions to Council. FTE Based Central Service Charge =$20,521 Schedule 11.1 Mayor The Mayor' s office provides front line policy and visibility to departments and the "outside" world. Issues for departments have generally been reviewed and approved by the Mayor's office before being presented to Council. FTE Based Central Service Charge =$37,395 Schedule 12.1 City Attorney The City Attorney expenses are generally absorbed by the General Fund. Civil issues for Labor negotiations, Purchasing contracts, Council actions are not allocated. The CAO provides the following services for SPRWS: workers compensation litigation; personallnjury litigation; advises staff on bankruptcy cases; assists and advises staff on permits, contracts, agreements, etc.; assists and advises staff on land sale matters; interprets and advises staff on city ordinances, state law; acts as general counsel on all general legal matters. Direct Charge Central Service Charge — Paid to General Fund =$50,000 Schedule 13.1 Human Resources The recruitment, selecting, testing, and reporting as well as the training programs benefit departments usually on an FTE basis. Services for Labar Relations and �rmative Action are included. SPRWS receives benefits as described above. FTE Based Central Service Charge =$236,122 � N:\CLERICAL�BOARD�.4GREEMENTS�MISC\ST PAUL\CENTRTSERV 2003DOC Schedule 14.1 Human Rights Human Rights provides leadership or enforcement for all applicable huznan rights laws and ordinances which call for equal employment, affirniative acfion, contract compliance and targeted business prograuis for SPRWS. Transacfion Based Central Service Charge =$47,699 Schedule 15.1 Technology and Management Services This CSC is not allocated back to departments. The allocation basis is too difficult to spread based on departmendfund/activity basis. As this time, the City is unable to e�ciently allocate these costs to the various departments. Direct Charge Central Service Charge — Paid to General Fund =$13,120 The Budget Office provides departments with guidelines and computer systems to prepare annual budgets. The O�ce also suggests and enforces city policies through the budget approval process. FTE Based Central Service Charge =$53,057 Direct Charge Central Service Charge (Rounding Impact) — Paid to General Fund =$4,452 Schedule 16.1 Citywide Informatian Services This CSC is not allocated back to departments and the General Fund absorbs these costs. This function creates, maintains, and updates programs and operates computers for payroll, vendor payments, and accounting systems. SPRWS derives benefit from consultation with City IS unit and receives city-wide E-mail, softwaze and hardware upgrade, city network backbone and training support from the IS unit. Direct Charge Central Service Charge — Paid to General Fund =$80,767 Schedule 17.1 Accounring and Auditing This function provides centralized accounring services, accounting policy direction, reconciliation of financial records, vendor payments and centralized payroll. Centralized payroll prepares, reviews, and reports such items as Federal and state taY withholding, PERA and unemployment records. The payroll prepares programs and audits new labor contracts including calculation of back pay. BookkeepinQ: These aze costs related to the operations ofthe Accounting section ofthe CiTy's Financial Services Office. This service provides the FM80 system and the structure for it=s operations. The above system is used by SPRWS for it' s Budgeting and Annual Financial Report functions. Transaction Based Central Service Charge =$95,868 N�\CLERICAL\BOARD�AGREEMENTS\MSC�ST PAUUCEN7'RLSERV 2003.DOC Pavroll: This chuge is primarily for the operation and control of the Central system. SPRWS has two payroll personnel to collect and input the data as well as to advise staff. FTE Based Central Service Charge =$27,645 Schedule 18.1 Treasury SPRWS uses Treasury as its investrnent advisor and pays a d'uect chazge based on the amount of funds invested. Estimated Direct Charge Central Service Fee — Paid by invoice =$65,000 Schedule 19.1 Risk Management This funcfion negotiates health coverage with competing vendors, and fulfitls the human resource function of determining eligibility for those services. Negotiates property damage claims on behalf of SPRWS. Represents SPRWS at hearings on unemployment wage claims. Deals with claims adjusters for SPRWS. Performs water billing hearing officer duties. Handles workers compensatSon claims and negotiations for SPRWS. Acts as data source to the City Attorney's Office for SPRWS. FTE Based Central Service Charge =$88,762 Summarv $828,204 will be budgeted in 850-28181-0290. This amount includes all Central Service Chazges to be paid to the City's General Fund. $170,000 will be budgeted in 8 5 0-2 8 1 8 1-0299. This amount includes the estimated charges for Contract and Analysis Services transactions and Treasury investment handiing fees. � N:\CLEAKAUBOARDWGREE�(ENTS4�ISC15T PAUUCENTRLSERV 2003.DOC lO BOARD OF WATEit COMMISSI0NER5 RE50LUTION — GE�IERAL fORt�A PRESEMED Bv Caidindl COMMISS�ONER Su1y 9, 2Q02 4842 WHEREAS, The City of Saint Paul and Boatd have agreed to the terms and conditions of an Agreement covering those direct and shared Cenh�al Services to be performed for the Board by the Ciry; and WHEREAS, The City of Saint Paul and Board have agreed that those central service charges which are paid directly to the general fund shall total $848,349 for the year 2003; and WHEREAS, The Board has budgeted $170,000 for services provided by Contract and Analysis Services and the O�ce of the Treasury for which it will be invoiced in 2003; now therefore, be it RESOLVED, That the Boazd does cflncur with staff's recommendation and hereby directs and authorizes the proper officers of the Board to execute said Agreement on behalf of the Board. Water Coaitnissioners y eyy Anfang Cardinal Harris President Reiter 23aqs Adopted by the Board of Water Commissioneis July 9, �� 2002 In favor 4_ Opposed � �/��� �_�,�tL✓ SECY.