CITY COUNCIL AGENDA REPORT. Honorable Mayor and City Council Members. The current contract with the Minnesota Department of Corrections

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1 City of RE NG CITY COUNCIL AGENDA REPORT TO: FROM: Honorable Mayor and City Council Members Rick Moskwa Public Works Director Agenda Item No.: 8- D Meeting : January 9, 2017 ACTION REQUESTED: Work Crew ( ICWC) Contract for 2 years. Motion to Approve the Renewal of the Institution Community ATTACHMENTS: ICWC Contract BACKGROUND: The current contract with the Minnesota Department of Corrections will expire on February 28, This contract is an example of the interagency collaboration that the City participates in and strengthens our relationships within the community. The correctional facility works diligently to give back to the City and involve their residents, employees, and community in the operations which invest in personal growth of our populations both inside and outside of the facility. The City has utilized this work force to perform multiple duties such as painting, cutting and clearing brush, cleaning, trimming and removing trees, laying sod, mowing, landscaping, cemetery restoration, concrete sidewalk work, incinerator clean- up, and demolition. In the past year, the ICWC crews were very involved in Memorial Park renovations, snow removal from downtown and residential sidewalks along with the other duties mentioned. This contract request is for a crew dispatched from the local Red Wing Correctional Facility. The terms of the contract would be March 1, 2017, or the date the State obtains all required signatures under Minnesota Statutes Section 16C.05, subdivision 2, whichever is later and expire February 28, 2019 or until all obligations have been satisfactorily fulfilled, whichever occurs first. Either party may terminate this agreement with or without cause upon 30 days written notice to the other party. Upon termination, Page I 1

2 reimbursement shall be made to the City on a pro rated basis, based on termination date. Under the contract, the State will provide a crew leader(s) who will supervise up to ten 10) offender crewmembers during five ( 5) 8 -hour days per week, including the hours that crew leaders spend for daily preparation, communication and travel. The crew leader will take direction as to the location and nature of the work to be completed on a given day as requested by the City' s authorized representative. He will also train each work crew in safety principles and techniques set forth by applicable federal, state and local agency requirements. The state has the authority to refuse selected projects if it considers the projects beyond the skill level of the crewmembers and/ or unsafe to perform. The skill level is much greater than the typical levels we see from the sentence to serve program. They also provide required personal safety equipment and clothing needed for specific work, screen projects to ensure that they meet ICWC guidelines, and submit reports to the City upon request within sixty ( 60) days of the end of each quarter. The City will pay the State for all services performed by the State under this contract in the amount of $43, 250 on May 1, 2017, $ 43, 250 on December 1, 2017, $ 43, 250 on May 1, 2018 and $ 43, 250 on December 1, Any overtime hours will be billed at the ) per hour. The rate has less than a 3% increase rate of seventy- five and 00/ 100 ($ over the previous contract which is an additional $ 2, per year of the contract. The total obligation of the City for all compensation and reimbursements to the State is 86, per year under this two year contract, plus any additional overtime hours, as its share of the cost of providing a crew leader and placing the work crews into service on the ICWC Program during the term of this agreement. This includes time scheduled for training, vacation, sick leave and holidays based on the terms and condition of the crew leaders AFSCME bargaining agreement. This has been included in the 2017 and 2018 budgets. DISCUSSION: Public Works proposes that this contract is an excellent opportunity for facilitating special project needs. If Council determines that the contract is acceptable, funding will come from enterprise funded CIP projects, any special funded projects, General Funded projects, and General Fund Maintenance that look to outsource work that cannot be accomplished in- house. This contract is not intended to replace regular employee work, but concentrate on work that would normally be outsourced. The cost savings are significant since the crew is leveraging costs at up to a 10 to 1 ratio. The State' s Authorized Representative is Scott Miller, ICWC Supervisor, or his/ her successor under the contract and the City' s authorized Representative is the Public Works Director, or his/ her successor. Page 12

3 The current Sentence to Service contract would still remain in effect and be separate. This agreement provides a half time crew for work as directed and at any time we can terminate the contract with 30 days written notice. This crew handles many labor intensive tasks for the Public Works which occur each year and are not anticipated to end for some time. These costs are part of normal Public Works operating costs. ONGOING OPERATING & MAINTENANCE COSTS: N/ A FUNDING SOURCE( S): CIP, Enterprise or Special Projects Funds, General Fund Projects, and General Fund Maintenance. ALTERNATIVES: 1.) Approve Contract and authorize Public Works Director as representative 2.) Not Approve RECOMMENDATION: Approve Contract; authorize Public Works Director as City Representative. Page 13

4 Income Contract No. Provided by Department of Administration) STATE OF MINNESOTA INCOME CONTRACT This contract is between the State of Minnesota, acting through its commissioner of corrections, Institution Community Work Crew Program (" State"), and the City of Red Wing, Public Works Department, 229 Tyler Road North, Red Wing, Minnesota (" Purchaser"). Recitals 1. Under Minn. Stat the State is empowered to enter into income contracts. 2. The Purchaser is in need of an Institution Community Work Crew (ICWC). 3. The State represents that it is duly qualified and agrees to provide the services described in this contract. Contract Term of Contract 1. 1 Effective date: March 1, 2017, or the date the State obtains all required signatures under Minnesota Statutes Section 16C. 05, subdivision 2, whichever is later Expiration date: February 28, 2019, or until all obligations have been satisfactorily fulfilled, whichever occurs first. 2 State' s Duties The State will: A. Provide a crew leader( s) who will supervise up to ten ( 10) offender crewmembers during five 5) 8 -hour days per week, including the hours crew leaders spend for daily preparation, communication and travel. The crew leader will take directions as to the location and nature of the work to be completed on a given day as requested by the Purchaser' s Authorized Representative or designee. B. Train each work crew in safety principles and techniques set forth by applicable federal, state and local agency requirements. Purchaser agrees that the state has the authority to refuse selected projects if it considers the projects beyond the skill level of the crewmembers and/ or unsafe to perform. 3 C. Provide required personal safety equipment and clothing needed for specific work. D. Screen projects to ensure that appropriate staff are assigned. E. Submit reports to the Purchaser upon request within sixty (60) days of the end of each quarter. Payment The Purchaser will pay the State for all services performed by the State under this contract as follows: Payment shall be made by the Purchaser to the State in the amount of forty-three thousand two hundred fifty dollars and 00/ 100 dollars ($ 43, 250) on May 1, 2017, forty-three thousand two hundred fifty dollars and 00/ 100 dollars ($ 43, 250) on December 1, 2017, forty-three thousand two hundred fifty dollars and 00/ 100 dollars ($ 43, 250) on May 1, 2018 and, forty-three thousand two hundred fifty dollars and 00/ 100 dollars ($ 43, 250) on December 1, Any overtime hours will be billed at the rate of seventy-five and 00/ 100 dollars ($ ) per hour. The total obligation of the Purchaser for all compensation and reimbursements to the State under this contract is one hundred seventy-three thousand and 00/ 100 dollars ($ 173, ), plus any additional overtime hours, as its share of the cost of providing a crew leader and placing the work crews into service on the ICWC Program during the term of this agreement. The Purchaser' s share includes time scheduled for training, vacation, sick leave and holidays based on the terms and condition of the crew leaders AFSCME bargaining agreement. ' Revised 9/ 02

5 Authorized Representatives The State's Authorized Representative is Scott Miller, ICWC Supervisor, or his/her successor. The Purchaser' s Authorized Representative is Rick Moskwa, Public Works Director, or his/ her successor. 5 Amendments, Waiver, and Contract Complete 5. 1 Amendments. Any amendment to this contract must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original contract, or their successors in office Waiver. If the State fails to enforce any provision of this contract, that failure does not waive the provision or its right to enforce it Contract Complete. This contract contains all negotiations and agreements between the State and the Purchaser. No other understanding regarding this contract, whether written or oral, may be used to bind either party. 6 Liability Each party will be responsible for its own acts and behavior and the results thereof. 7 Government Data Practices The Purchaser must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this contract. The civil remedies of Minn. Stat apply to the release of the data referred to in this clause by either the Purchaser or the State. If the Purchaser receives a request to release the data referred to in this Clause, the Purchaser must immediately notify the State. The State will give the Purchaser instructions concerning the release of the data to the requesting party before the data is released. 8 Publicity Any publicity regarding the subject matter of this contract must not be released without prior written approval from the State' s Authorized Representative. 9 Audit Under Minn. Stat. 16C. 05, subd. 5, the Purchaser' s books, records, documents, and accounting procedures and practices relevant to this contract are subject to examination by the State and/ or the State Auditor or Legislative Auditor, as appropriate, for a total of six years. 10 Governing Law, Jurisdiction, and Venue Minnesota law, without regard to its choice -of l-aw provisions, governs this contract. Venue for all legal proceedings out of this contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 11 Termination Either party may terminate this Agreement at any time, with or without cause, upon 30 days' written notice to the other party. Upon such termination, purchaser shall receive a refund of payments made to the State on a pro rata basis as of the date the termination becomes effective. Revised 9/ 02

6 1. PURCHASER The Purchaser certifies that the appropriate person( s) have executed the contract on behalf ofthe Purchaser as required by applicable articles, bylaws, resolutions, or ordinances. Mayor I City Council Administrator City Clerk 2. STATE AGENCY With delegated authority 3. Commissioner of Administration As delegated to Materials Management Division Distribution DOC Financial Services Unit Original (fully executed) contract Purchaser State' s Authorized Representative Budget Officer of Authorized Representative Department of Administration Materials Management Division Revised 9/ 02