May 2015 Missouri Municipal Review

Page 1

The Missouri Municipal

Review

The Official Publication of The Missouri Municipal League

May 2015

2015 PUBLIC WORKS ISSUE • New Facilities For Fulton • LiDAR Surveying • Micro-Surfacing • Playground Safety And Planning


Missouri Securities Investment Program A Cash Management Program for School Districts, Counties, Municipalities and Other Political Subdivisions

The Missouri Securities Investment Program (“MOSIP”) is a comprehensive cash management program for school districts, counties, municipalities, and other political subdivisions. MOSIP was created in 1991 by the Missouri School Boards Association. MOSIP offers its investors a professionally managed portfolio with competitive money market rates. MOSIP stresses maintaining safety, liquidity and yield as the primary investment objectives.

Administered by: PFM Asset Management LLC Sponsored by: Missouri School Boards Association • Missouri Association of School Administrators Missouri Association of School Business Officials • Missouri Association of Counties • Missouri Municipal League

Registered Representatives

This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security. Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Missouri Securities Investment Program’s portfolios. This and other information about the Program’s portfolios is available in the Program’s current Information Statement, which should be read carefully before investing. A copy of the Information Statement may be obtained by calling 1-877-MY-MOSIP or is available on the William T. Sullivan, Jr. Maria Altomare Program’s website at www.mosip.org. While the MOSIP Liquid Series seeks to Henry Sun Managing Director Managing Director Analyst maintain a stable net asset value of $1.00 per share and the MOSIP Term portfolio 631-806-9470 cell 1-800-891-7910 x3091 1-800-891-7910 x3095 seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is sullivanw@pfm.com altomarem@pfm.com sunh@pfm.com possible to lose money investing in the Program. An investment in the Program is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Program’s portfolios are distributed by 77 West Port Plaza Drive • Suite 220 • St. Louis, MO 63146 PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority 1-800-891-7910 (FINRA) (www.finra.org and Securities Investor Protection Corporation (SIPC) P.O. Box 11760 • Harrisburg, PA 17108-1760 (www.sipc.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM 1-877-MY-MOSIP 2 / May 2015 The Missouri Municipal Review www.mocities.com Asset Management LLC.


The Missouri Municipal

Review

May 2015

VOLUME 80, NO.3

The Official Publication of The Missouri Municipal League

CONTENTS

President

Mayor Bill Kolas Higginsville

Interim Vice President

Mayor Norman McCourt Black Jack

MISSOURI MUNICIPAL LEAGUE BOARD OF DIRECTORS Ruth Baker, City Clerk, Manchester; Stephen Galliher, Mayor, Sedalia; Tim Grenke, M a y o r , C e n t r a l ia; Joan Jad ali, A s s is tan t City Manager/Director of Finance and Administration, Webster Groves; Bill Johnson, Director of Administration, Fulton; David Kater, Mayor, Desloge; Donald Krank, Council Member, Black Jack; *Jan Marcason, Council Member, Kansas City; Paul Martin, Attorney, Olivette; *Norman McCourt, Mayor, Black Jack; John “Rocky” Reitmeyer, Alderman, St. Peters; Randall Rhoads, Mayor, Lee's Summit; Matthew G. Robinson, Mayor, Hazelwood; Kathy Rose, Mayor, Riverside; *Carson Ross, Mayor, Blue Springs; Tom Short, City Administrator, Carthage; Robert Stephens, Mayor, Springfield; Scott Wagner, Councilmember, Kansas City; Eileen Weir, Mayor, Independence; *Gerry Welch, Mayor, Webster Groves; *Past President

e

AFFILIATE GROUPS: Missouri City Management Association; City Clerks and Finance Officers Association; Government Finance Officers Association of Missouri; Missouri Municipal Attorneys Association; Missouri Park and Recreation Association; Missouri Chapter of the National Association of Telecommunications Officers and Advisors; Missouri Chapter of the American Public Works Association; Missouri Association of Fire Chiefs. www.mocities.com

LiDAR Surveying by Bob Gilbert

9/

Payment Bonds: What Public Officials And Public Works Contractors Need To Know by Edward V. Crites and Joseph C. Blanner

12/

Considerations In Hiring A Water/Wastewater Contract Operator Firm by Sandy Neal

16/

Municipalities Turn To Micro-Surfacing For Preventative Maintenance Of Roads by Doug Rada

17/

Playground Safety: More Than Child's Play by Gary Gate

e

7/

Immediate Past President Council Member Jan Marcason Kansas City

4 / Under One Roof: City Of Fulton Maximizes Efficiency With New Public Facilities Complex by Darin Wernig

18/ Playground Planning, Construction, and Acceptance Recommendations by Patrick Bonnot 20/

Public Works Around The State

22/

Cities And State Fiscal Structure 2015

DEPARTMENTS 24/ Professional Directory 26/ Calendar of Events / Classifieds Laura Holloway, Editor Contributing Editors: Dan Ross and Richard Sheets Missouri Municipal Review (ISSN 0026-6647) is the official publication of the Missouri Municipal League state association of cities, towns and villages, and other municipal corporations of Missouri. Publication office is maintained at 1727 Southridge Drive, Jefferson City, MO 65109. Subscriptions: $30 per year. Single copies: $5 prepaid. Advertising rates on request. Published bi-monthly. Periodicals postage paid at Jefferson City, Missouri. Postmaster: Send form 3579 to 1727 Southridge Drive, Jefferson City, MO 65109. To contact the League Office call 573-635-9134, fax 573-635-9009 or email the League at info@mocities.com. The League’s Website address is: www.mocities.com.

The Missouri Municipal Review

May 2015 /3


UNDER ONE ROOF CITY OF FULTON MAXIMIZES EFFICIENCY WITH NEW PUBLIC FACILITIES COMPLEX by Darin Wernig

C

hange can be difficult for people, no matter if it’s moving to a new city, buying a new car, or transitioning into a new career. However, change will not be hard for many of Fulton city’s employees as they prepare to move into a new Public Facilities Complex (PFC). Scheduled to open in late 2015, the 107,600-square-foot complex will feature seven structures – an administration building, solid waste building, repair garage, warehouse, a callout facility, and two vehicle storage buildings. When designing the site’s layout, the main goal of Fulton’s administrators was to maximize efficiency. "As we are a small community, departments have a great need to share equipment and personnel on a somewhat regular basis,” said Fulton

4 / May 2015

Director of Administration Bill Johnson. “By having everyone under one roof, this coordination is going to be very efficient and very effective.” “Our current facility has areas that are far reaching, offices that are far reaching,” said Fulton City Engineer Greg Hayes. “Therefore, communication between the different types of crews is difficult.” Finding the ideal location to build the complex was almost as important as how it should be designed. Seven acres, the size of the current warehouse facility, was too compact to effectively handle all of the employee’s vehicles, city vehicles and equipment, as well as the necessary office space. A preferred site needed to have a footprint twice the size. “A large site was a big thing,” said Fulton Mayor LeRoy Benton. The Missouri Municipal Review

“Of course we wanted it on property that the City owned, so we didn’t face additional costs. Also, it needed to be a site that was relatively easy to prepare, not on a hillside.” The chosen area was a large city-owned tract of land that had been previously purchased from HarbisonWalker Refractories. It‘s only a half mile northwest of the current warehouse, contains 20 additional acres if needed, and should not cause problems for residents. “We tried to identify a location that wasn’t near a residential neighborhood,” said Johnson. “There are going to be times in operations, such as when we plow snow, when heavy equipment will be operating in and out of that facility 24 hours a day. We wanted to be as little of a disruption to the residential properties as possible.”

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Since some workers may be called to an emergency at any time, the PFC includes what the City describes as a "callout" building. It will contain the necessary vehicles and equipment for most emergency situations and is designed to save time. “When we get called out in the middle of the night or on a weekend, we don’t want to have to breach the entire facility to get out one piece of equipment,” said Hayes. “So the convenience of a callout facility allows a person to enter into a single building without going into a fenced-in area to get the equipment needed for repairs.” Truck drivers for the solid waste department also will not have to enter the complex to reach their vehicles. They will simply pull up to their building, enter through a locked door, open the bay doors and drive off. This will help ensure a secure compound when staff is not on site. “Solid waste starts their days at 3 to 4 a.m.,” said Johnson. “Now, the trucks are inside a fence and when they begin their day, the gates are left open and the whole property is left unsecured. With the new layout and design, we eliminate that as a problem.” Mechanics will appreciate improved work space. The current repair garage has two doors and room for three cars while the new one will have nine work bays, as well as indoor and outdoor wash bays. “If you tear a piece of equipment down very far, you have lost anywhere from a third to a half of your garage space,” Johnson said. “In the new facility, even if we have a couple pieces of equipment torn down, there’s still plenty of space.” A new complex has been needed due to the condition of the current warehouse site that the City purchased in three phases between 1951 and 1986. Once home to Harbison-Walker’s fire brick plant until the late 1940’s, some of the buildings used by the City are more than 100 years old. Areas once used to mould and dry fire brick are now used for offices, a repair garage, and vehicle storage. The buildings, are showing their age as portions of the exterior stone and mortar walls are crumbling, with large holes that allow bystanders to peer inside. Utility poles have been added to help stabilize roof trusses since the weakened outer walls support the roof. A heavy snowfall two years ago caused a few trusses to snap,

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Scheduled to open in late 2015, the 107,600-square-foot complex will feature seven structures – an administration building, solid waste building, repair garage, warehouse, a callout facility, and two vehicle storage buildings.

requiring additional bracing. “That was when I decided it was time to quit talking and put it at the forefront,” said Benton. “It’s in very poor condition, not very efficient, not very effective,” Johnson said. “The only thing it had going for it was that it was large enough to allow most of the departments to be in the same general proximity, which did lead to some economies of scale.” Meanwhile, the PFC will have plenty of room for practically everything, including employee’s personal vehicles. At the existing warehouse, staff’s personal cars park alongside work vehicles. With the new complex, employees will have a separate

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lot outside of the secure perimeter and away from city equipment. Another added convenience will be a fuel island for city-owned vehicles that will include both diesel fuel and gasoline. Currently, the City only stores diesel on site. The $150,000 cost, that is separate from the overall PFC budget, is expected to provide a long-term economic benefit. “There has been a fine balance between wants and needs,” said Hayes. “There are the needs of the facility that we have to have. There are also the wants that will make it an even better place. Hopefully, this will reduce our cost of fueling.” At a cost of $7.1 million, Fulton

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 



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• • • •

   

  

 

 is paying for the project using two sources. A $4 million loan has been 

provided by three of the City’s banks The Callaway Bank, Central Bank and Bank Star One. Through a 10-year leasepurchase agreement, each bank will contribute an equal share. Debt service for the project will be covered by each of the departments using the complex that will total $400,000 annually plus interest. The remaining costs will come from city reserves. “I think it’s pretty impressive that three of the City’s major lending institutions are willing to work together to finance the project,” said Johnson. “Citizen’s who have their money in

   

the bank will be able to look at the warehouse facility and know that their deposits are assisting their community in providing a higher level of service and a more efficient facility.” The City managed to save significant money on the project by utilizing its own staff for some of the pre-construction work. This included the preliminary design, site plan and earth moving, as well as electric, water, gas, sewer and stormwater infrastructure. Major projects like the PFC are nothing new for the city of Fulton as it is one of many major improvements made during the past 13 years. In 2002, a new

City Hall opened that replaced a much smaller version built in 1899. A second fire station was constructed in 2011, and the City purchased and renovated an existing building for use as police headquarters in 2012. Soon, a new animal shelter will open thanks in part to private contributions. It will replace a 56-year-old structure that once served as a swimming pool bath house. Also, $13 million in federally-mandated upgrades to Fulton's wastewater treatment plant will begin in the coming months. “The City Council has shown a great vision in developing some of the major infrastructure that is going to sustain this community for the next 50, 60 or 100 years,” Johnson said. “We’ve done major ongoing improvements to the sanitary sewer. In 2005, we did major improvements to the water system. The electric system was rebuilt in the early 2000’s and the natural gas distribution system has been 100 percent completely rebuilt. “ Once the Public Facilities Complex opens, the old warehouse site will quickly become a ghost town. The complex still retains some of the site’s history as a kiln and smokestack still stand from its heyday as a brick factory. The ever-fading paint that reads “Lewton Truck Line” is barely legible on the north wall of one building. Its future remains unsolved, but there have already been suggestions. “I have been contacted by an individual that has a dream for the existing complex, but the City is going to do a little bit of cleanup and get completely moved out before we make much of an effort to dispose of the property,” Johnson said. “It would be a great goal to convert that property back into private use,” said Benton. Darin Wernig is the public information officer for the city of Fulton. Contact him at publicinfo@ fultonmo.org.

6 / May 2015

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LiDAR SURVEYING DELIVERING INCREASED SAFETY AND EFFICIENCY ON PUBLIC WORKS PROJECTS by Bob Gilbert

T

he roots of surveying points per square meter, and can trace all the way back capture hundreds of square miles to ancient Egypt and in a single day. the Great Pyramid of Khufu. Today more and more Safety And Efficiency technology is being integrated Traditional means of survey into the profession, to the benefit only allow for an educated best of both surveyors and those guess in some instances. Safety ultimately using the survey data. concerns can hinder highly accurate One such example of survey measurements of roadways and technology is Light Detection stockpiles. Transmission lines and and Ranging (LiDAR). A LiDAR as-built indoor facilities are difficult scanner gives surveyors the ability to measure using traditional survey to measure complex areas more methods. quickly, accurately, and safely than LiDAR technology allows traditional methods of survey. surveyors to obtain highly-detailed LiDAR equipment quickly information about terrain and mass captures very detailed data by in ways never before possible. The using the reflection time of rapid density of the gathered data set pulses of laser light to map a from one trip can save the need for surface. LiDAR refers to a remote additional survey work if plans are sensing technology that emits altered or additional information intense, focused beams of light and is needed. measures the time it takes for the “Traditional survey methods The mobile scanner offers extremely high reflections to be detected by the measurement rates and provides dense, accurate, still have their place on many sensor. This information is used and feature-rich data at high-driving speeds. public works projects, but in certain to compute ranges, or distances, to instances, such as on high-traffic objects. It allows for development roadways when the safety of the of precise, realistic, three-dimensional • Mobile: A ground-based, mobile survey crew is a factor, LiDAR provides scanner offers extremely high us the ability to capture extremely representations of roadways, railroads, measurement rates and provides detailed survey-grade information bridges, and buildings. dense, accurate, and feature-rich quickly while mitigating safety risks,” After collection, the raw point data data at high driving speeds. Mobile said Herb Bailey, a project engineer at is processed to deliver the information LiDAR is perfect for applications the Jefferson City-based engineering in the form of contours and surfaces for like mapping roadways and rail and technology firm Bartlett & West. use in standard design programs. corridors, as well as extended “For example, since LiDAR works off urban and vacant areas. This unit of surface bounce-back, we have the Types Of LiDAR provides measurements at a rate option to scan a roadway at night if LiDAR is collected from groundof up to 1.1 million per second, we are looking to capture the details based static, mobile, or aerial platforms. and can measure objects from 1.5 of the roadway during a lighter traffic • Static (Stationary): Ground-based, meters away with accuracy of a few time. This helps keep the survey crews static LiDAR systems are used millimeters. off the road while getting accurate for close-range, high-accuracy • Aerial: Aerial LiDAR allows for measurements to take into the design applications, such as bridge rapid surveying over large areas program.” and dam monitoring, facilities with accuracy of down to five inventory, erosion mapping, and centimeters. Uses for aerial imagery, Highway 5 Nighttime Sidewalk manufacturing. Ground-based include: monitoring and managing Mapping LiDARs pulse at rates up to 1,000 environmental change; planning for One such example of performing Hz, and can map objects from two towns; and determining optimal LiDAR work at night to minimize meters up to 1,000 meters away, r o u t e l o c a t i o n a n d d e s i g n f o r disruption of traffic flow and increase with accuracies of millimeters to a major infrastructure projects. This safety was the Missouri Department of few centimeters. technology can measure 10 to 80 Transportation’s (MoDOT) mapping www.mocities.com

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May 2015 / 7


and survey of Highway 5 in Lebanon, Missouri. In November 2012, MoDOT used Bartlett & West to establish horizontal and vertical survey controls; survey utility locations; design a survey of the project corridor; and provide base mapping for the project. With a tight time frame, unknown weather delays and a high-traffic area, the firm decided the design survey would be completed using a Terrestrial LiDAR scanner made by Riegl. The horizontal and vertical control was set with Global Positioning System (GPS) technology utilizing the MoDOT Global Positioning System Reference Station Network. Utility locations were tracked utilizing the Missouri One Call system. The utility mapping was completed using GPS technology and Robotic Total Stations. Field crews worked through the overnight hours to minimize traffic delays to the public, obstructions to the scanner, and to keep the crew out of harm’s way.

MoDOT Aerial Road Mapping

Another example of MoDOT utilizing LiDAR services is a statewide aerial LiDAR program that was completed in 120 days between March

8 / May 2015

and July of 2014. In this case, Bartlett & West partnered with Surveying and Mapping (SAM) of Austin, Texas, to p rov ide aerial LiDAR services for eight Missouri Department of Transportation (MoDOT) mapping projects. The projects ranged from widening and shouldering projects to relocations, and from two-way rural projects to four-lane urban freeways. Two of the projects were in the St. Louis area, two in southeast Missouri, two in central Missouri and two in the Kansas City area. SAM provided the aerial scan using a helicopter that was trucked rather than flown in to minimize mobilization costs. All eight projects were flown and scanned during four days in the same week. Bartlett & West’s survey manager provided quality assurance controls to SAM’s office in Austin that were used during calibration of the aerial data. SAM submitted the calibrated data on each project to Bartlett & West’s processing team in Topeka, Kansas. As data sets were collected, processing team members were able to extract and classify topographic features and to create a basemap

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complete with contours. These features were extracted from the LiDAR data using specific software. “The benefits of using LiDAR rather than a traditional survey for these MoDOT projects include our ability to minimize human exposure to fast moving traffic; the thoroughness of the point data we are able to collect; and the accuracy of that data,” said Bailey. LiDAR can reduce costs on certain complex projects and be used to provide design-ready digital data deliverables efficiently. “LiDAR isn’t the solution for every survey project,” Bailey said. “Yet, when it fits, the technology really provides innovative solutions.” Bob Gilbert is a professional engineer and the location manager for Bartlett & West’s Jefferson City, Missouri, office. He has served as project manager, quality control/quality assurance reviewer, technical advisor, and project engineer on projects ranging from storm and sanitary sewer projects, roadway and roundabout projects, and facility improvements involving pumping, lighting, and control systems throughout the surrounding communities.

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PAYMENT BONDS What Public Officials And Public Works Contractors Need To Know by Edward V. Crites and Joseph C. Blanner

P

ublic construction projects in Missouri are subject to certain legal requirements that do not apply to private sector projects. 1 These legal requirements must be considered by public officials and contractors when contemplating a public works project because they can affect cost and their violation can carry civil or criminal liability.2 Moreover, contracting officials are presumed to know the requirements of the law.3 This article examines the legal requirements in Missouri for payment bonds for public works projects.

Payment Bond Statute

The Missouri Payment Bond Statute (PBS), §107.170, RSMo imposes a duty on: Public entities … in making contracts for public works [exceeding $50,000 4] … to require every contractor … to furnish the public entity, a bond with good and sufficient sureties … conditioned for the payment of … materials incorporated, consumed or used in … such work … and for all labor performed in such work whether by subcontractor or otherwise.

History And Purpose

Missouri’s long-established policy protects those who furnish labor or materials in making improvements for the benefit of private persons by

allowing a lien upon the improvements.5 These are known as “mechanics’ and materialmen’s liens.” 6 Public policy considerations, however, prohibit liens on public improvements. 7 In recognition of the moral duty to protect material suppliers and laborers, and to enable public entities to secure cheaper labor and materials, Missouri courts recognized a public entity’s right to require contractors to provide a surety bond for payment of suppliers and laborers. 8 A public entity’s right to require surety bonds was eventually made into a statutory obligation by the enactment of the predecessor to §107.707.9 Payment bonds are intended to provide the same protections to those furnishing labor and materials on a public project as mechanic’s liens do for private projects. 10 Therefore, the PBS is intended to protect everyone who would have had the protection of a mechanic’s lien.11 To achieve that purpose, the PBS is broadly construed by the courts. 12

Public Entities

“Public entity” is defined in §107.170.1 (2) as, “any official, board, commission or agency of this state or any county, city, town, township, school, road district, or other political subdivision of this state.”13 Numerous cases apply the

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requirements of §107.170 to various departments of the state, 14 counties, 15 cities and towns,16 and school districts.17 The obligation to require a payment bond also has been applied by the courts to municipal utilities, 18 port authorities, 19 public water supply districts, 20 and housing authorities. 21 These entities are presumably “political subdivisions of the state” as the term is used in §107.170.22 The term “agency of this state” is not defined within §107.170 and has been examined and applied in several Missouri cases. In Redbird Eng’r Sales, Inc. v. Bi-State Dev. Agency, 23 a material supplier brought a mechanic’s lien action against property owned by BiState Development Agency, a nonprofit corporation that operates in the public interest, 24 relating to the construction of a public transportation facility. After its mechanic’s lien claim was dismissed, the material supplier sought damages against Bi-State for its failure to require the contractor to furnish a payment bond pursuant to §107.170. 25 The court held that, “only such property held by a quasi-public corporation for the benefit of the public which can be determined to be reasonably necessary for public use is exempt [from mechanic’s liens].” 26 Because the public transportation facility was “reasonably necessary for the public use," the court found that the material supplier could not file a

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mechanic’s lien against the property. The court then determined that Bi-State was an “agency of the state” as the phrase is used in §107.170 (since the enabling legislation for Bi-State refers to it as a state agency). Another case examining the phrase “agency of the state” was Johnson Controls, Inc. v. Citizens Mem. Hosp. Dist.,27 where a subcontractor who had not been paid for labor and materials sued a public hospital district 28 and its directors for failing to require a payment bond. 29 In Johnson Controls, the court determined that a public hospital district did not need a payment bond. The court concluded that the public hospital district was not an “agency of the state” and, accordingly, the requirements of §107.170 did not apply because the statutes authorizing their creation did not refer to them as such. In Collins & Herman, Inc. v. TM2 Construction Co., 30 the court applied the Payment Bond Statute (PBS) to AmerenUE, a Missouri corporation that supplies electric and gas utility service to large portions of the state. 31 The plaintiffs, who had furnished labor and materials, brought mechanic’s lien claims against Ameren that were dismissed. The plaintiffs then brought claims alleging that Ameren should have required its contractor to furnish a payment bond in accordance with the PBS. 10 / May 2015

Before determining whether Ameren was required to comply with the PBS, the court stated “that subcontractors and suppliers are entitled to the protection of either mechanic’s liens or payment bonds depending on the nature of the property they improve.”32 The court determined that Ameren was an “agency of the state” because Ameren is a “public utility” operated in the public interest and its power substations, on which plaintiffs worked, were “reasonably necessary for public use.” 33 Moreover, while Ameren, unlike Bi-State, is an investorowned utility company, this difference was not considered to be important due to the public policy consideration behind the PBS. Ameren is subject to heavy regulation by the Public Service Commission (PSC) and its authority to provide essential utility services to the residents of the state of Missouri derives solely from its regulation by the PSC.34 The court also distinguished Johnson Controls on the basis that public hospital districts are not regulated by the state, whereas Ameren’s authority to provide electrical services to Missouri derives solely from the PSC.35

What Are Public Works?

Courts have found the following qualify as public works: improvements t o u t i l i t y c o m p a n y s u b s t a t i o n s ; 36

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asbestos removal from a port authority warehouse; 37 construction of water test wells; 38 street repairs resulting from work on a natural gas pipeline; 39 construction of a shelter and repair of a garage for public buses;40 raising streets over railroad tracks with bridges; 41 sewers, grading, curbing, guttering and macadamizing of streets;42 removal and disposal of garbage; 43 installing and serving computer network equipment in a public entity; 44 and demolishing buildings condemned by a governmental body. 45 In 1995, an amendment to the PBS defined public works as “the erection, construction, alteration, repair or improvement of any building, road, street, public utility, or other public facility owned by the public entity.” Before that, no definition was provided. One court has held that the 1995 definition narrows the PBS’s application to projects “owned” by a public entity rather than to “fixed works constructed for public use or benefit paid for wholly or in part out of public funds.” However, the court did not apply the narrower definition because the project at issue pre-dated the amendment.46 In spite of the narrower definition, courts continue to analyze the meaning of “public works” in the context of the PBS’s purpose of providing laborers and material suppliers’ protection of either a mechanic’s lien or payment bond. 47 Accordingly, the court will likely reject any interpretation urged upon the court that would deprive laborers or material suppliers the protection of either a mechanic’s lien or a payment bond. Additionally, a recent case found that a permit surety bond required by the Missouri Highway and Transportation Commission with a right-of-way permit for incidental work upon a public right of way was not “public work” since the project was paid for and owned by a private company. Since the work was not a “public work,” it did not come within the PBS. 48

Duties Of Public Officials

Under the PBS, “public entities” must require every contractor to furnish the bond on projects exceeding $50,000. “Public Entity” is defined as “any official, board, commission, or agency” of the state or political subdivision. Public officials 49 must require contractors to obtain a payment bond or face personal liability to those who thereby suffer a loss. 50 www.mocities.com


Courts have held board members personally liable when they breach their duty to require a bond.51 Similarly, individual commissioners of state agencies52 or counties53 and utility board members 54 have been held personally liable for failure to require a bond. On the other hand, the decision whether to accept a particular bond is discretionary and, in such instances, board members are generally entitled to immunity. 55 So, where a board obtains a bond from a company that behaves as a normal bonding company, it is protected by official immunity. 56 However, the board is responsible for verifying the surety’s existence. 57 There are circumstances where the public entity has no liability for failure to obtain the bond but individual officials do. A board that passes an ordinance incorporating the bond requirement into a contract cannot be held liable because it had fulfilled its ministerial duty. 58 As a legislative body, it has limited power to insure compliance with the ordinance. The mayor, who has general supervisory powers over executive affairs and sees that each officer and employee performs his duty, and the comptroller, who supervises the city’s fiscal affairs, are differently situated. Each can be held liable for breaching their ministerial duties in failing to require a payment bond on a construction project.59 There must be a contract for the construction project for the duty to arise. A commissioner involved in the request for bids but who did not engage the contractor is not personally liable because there was no enforceable contract for a public work.60 Additionally, current public officials are not liable when they were not in their positions when the contract was entered.61 Indemnity of Public Officials. Under the PBS, the public entity may choose to defend a public official or employee in litigation and may choose to pay any judgment entered if the official or employee fails to require a payment bond, except in instances involving malfeasance in office or willful or wanton neglect of duty.

Damages Allowed Payment bonds cover all labor and materials used and incorporated into a construction project. 62 In addition, payment bonds have been held to cover the cost of repair of capital equipment ( e . g . c r a n e ) ; 63 e x t r a c o s t s i n c u r r e d www.mocities.com

in finishing a job on time due to a subcontractor’ negligence; 64 amounts due under the Prevailing Wage Act 65 and Prompt Pay Act;66 cost of labor and materials;67 cash loans to a subcontractor to procure mandated insurance; 68 and rental equipment. 69 Although bonds issued will incorporate the PBS’s terms, they may grant broader coverage. In such instances, normal rules of construction apply to determine coverage. Accordingly, where the bond covers all of the principal’s obligations rather than only payment of materials and labor, it is broad enough to cover payment of attorney’s fees owed pursuant to the principal’s subcontract. 70 Interest. The Act does not require that bonds cover interest.71 As such, public entities have been held to have no liability for interest when sued for failure to obtain a payment bond. 72 Loans. Loans to contractors to pay for labor and materials are not covered by payment bonds because the Act protects those supplying labor and materials, not entities that lend money. 73 A supplier who advances funds to the principal, however, is entitled to apply payment to funds advanced rather than to materials supplied. 74 Deductions. Contractors who failed to finish work are entitled to the reasonable value of their work, less damages for non-completion.75 Punitive Damages. There is some support for prohibiting an award of The Missouri Municipal Review

punitive damages against public officials in claims under §107.170 on the basis that the purpose is only to provide the relief available by mechanic’s liens.76

Conclusion Because the PBS creates liability for public officials and because it contains complex, technical requirements for its enforcement, public officials and contractors and subcontractors working on public projects should possess a knowledge of its requirements. Edward V. Crites, a 1983 graduate of St. Louis University School of Law, is an attorney with Behr, McCarter & Potter, P.C. in St. Louis. His practice includes representing governmental entities, insurers, contractors, professionals and material suppliers. Joseph Blanner is a principal at the law firm of McCarthy, Leonard & Kaemmerer, LC where he focuses his practice on business and commercial law, construction, municipal and real estate law and litigations. Mr. Blanner received his B.S. in Public Administration from St. Louis University and his J.D. from St. Louis University.

Footnotes are available for this article by contacting the Missouri Municipal League at (573) 635-9134 or info@mocities.com.

May 2015 / 11


CONSIDERATIONS IN HIRING A WATER/WASTEWATER CONTRACT OPERATOR FIRM

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by Sandy Neal

he decision to outsource for water and wastewater management is one that more and more cities are facing. According to the “Public Works Financing 18th Annual Water Partnerships Survey” that was released in March of 2014, “the estimated total water/wastewater outsourcing market was $1.9 billion in 2013, up slightly over $1.8 billion in 2012.” One of the perceived causes for this trend is the high cost of chronically deferred maintenance and aging infrastructure facing many local governments, as well as increased regulations for water and wastewater management. Hiring a professional contract operator is seen as a viable way to mitigate at least some of the financial and regulatory burdens communities are facing. So how do cities approach this public-private partnership? Three Missouri city officials share their experiences and address the benefits; their approach to the process; and typical concerns and tips for finding the right fit when hiring a professional contract operations firm. JD Kehrman is the city manager of Nevada, Missouri, and has been in the positon since 2010. The City began a partnership for its water and wastewater treatment and systems operations in February of 2011. Dick Greminger has served as the mayor of Ste. Genevieve, Missouri, since 2003. The City first engaged with a professional contract operations firm in 2009 for management and operation of the water plant and has since expanded this arrangement to include wastewater treatment, distribution, and collection systems. Casey Brunke became the city engineer for Cape Girardeau, Missouri, in 2011. The partnership with a professional water contract operator was already in place, having begun in June of 1992.

Why Did Hiring A Contract Operator For Your Water And Wastewater Management Become A Consideration? Kehrman: Every city has its own nuances when it comes to their water and wastewater system. Nevada is one of the only reverse-osmosis systems in the state, and this presented challenges in terms of having the necessary level of expertise in place. When I arrived in 2010, the city of Nevada had a number of regulatory issues with its wastewater service, both with the Environmental Protection Agency (EPA) and the Department of Natural Resources (DNR). I needed a great deal of in-depth expertise in a short period of time, as we needed to make changes quickly. Greminger: In Ste. Genevieve, we were questioning how good of a job we were doing managing the water 12 / May 2015

and wastewater systems with our own people. Obviously, we had licensed operators of our own, but wondered if we couldn’t do things better. We began by having a contract operator come in to look at how we were operating – to lend a fresh, professional perspective. What we learned was that we could indeed do better. Perhaps like other towns of our size, we didn’t have the ability to keep people up on training and the most innovative ways of doing things. As we were exploring our options, we were visited by the EPA and by DNR, and were cited on a couple of items that needed to be corrected. Brunke: Brunke was not employed by the City when the partnership began, but the history of the system is that Ameren UE owned the water system and was planning to sell it. As part of the process, the City engaged in conversations with a contract operator The Missouri Municipal Review

and initially proposed a contract for a five-year term. The contract continues with the initial contract operations firm. Brunke says “We had a lot of systems to manage in our City in addition to the water system. I imagine that, at that time, the City needed help as well as some specialized expertise.

What Concerns Did You Have About Entering Into A Partnership With A Water And Wastewater Contract Operator? Kehrman: Our biggest concern was cost. We needed to analyze what we were currently spending and if the additional cost would provide a return on our investment. The second most important factor was accountability. I needed to know that we were going to see immediate improvements in the quality of water in the area of compliance, as well as an improvement in the quality of www.mocities.com


Rock. Hard place. the workforce, including better training for and performance of employees. Greminger: The biggest concern we met was that of the community. The question was why we were looking to outsource something that was perceived to be manageable in-house.

How Did You Address These Concerns? Kehrman: We scrutinized the contract and the expertise of the company. We negotiated the contract to be exactly where we needed it. Greminger: I brought referenced examples of the expertise that we didn’t have that the firm did. I also presented some of the savings they had already found they could provide, and spending they could prevent that we wouldn’t have known about. For example, we had an outdated SCADA system that would have cost several thousand dollars to fix. The contract operator was able to fix that for us in the short term, making it last long enough until we could build a fund to replace it. Incidentally, everyone else that looked at the system said we had to replace it right away and there was no other alternative.

What Was Most Important To You In Regards To Qualifications And/Or Services? Kehrman: For us, it was that the company was local and able to coordinate with other local entities regarding any problems, as well as work locally with DNR. We also wanted to make sure the contractor we hired

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As water and wastewater problems grow, our local communities are getting squeezed: capital improvement projects technical challenges shortages of licensed personnel government regulations revenue shortfalls. Missouri’s own Alliance Water Resources is a national leader in solving exactly these problems. If you can check any of these boxes, call (573) 874-8080 or visit www.alliancewater.com View Project Profiles at www.alliancewater.com

Water and Wastewater Operator Requirements Excerpts from the Missouri Department of Natural Resources’ Environmental Careers for Water and Wastewater Operators

Water and wastewater operators serve their neighbors by protecting public health. It is extremely important that people receive clean, potable water and that wastewater be discharged in an environmentally safe manner. Water and wastewater operators are certified by the Missouri Department of Natural Resources. There are minimum educational and experience requirements depending on the various certification levels. For Drinking Water Treatment and Distribution Operator Certification: •

Pass a state certification exam.

Possess the required amount of operating experience, that ranges from six months to 5 1/2 years depending on the certificate level. Equivalent experience, such as a department-approved, multi-day course, may count towards experience requirements.

An additional six months of operating experience or completion of a special department-approved training course is needed for those who do not have a high school diploma or GED.

For Wastewater Operator Certification: •

Pass a state certification exam.

Possess the required amount of operating experience that ranges from one to six years depending on the certificate level. Equivalent experience, such as a department-approved multi-day course, may count towards experience requirements.

A list of upcoming water and wastewater certification courses can be found by visiting the Department’s website at: http://dnr.mo.gov/env/ wpp/opcert/oprtrain.htm. The Operator Certification Database provides an easy fast way to find out what operators in your county are certified and at what level: https://www.dnr.mo.gov/operator/index.do.

The Missouri Municipal Review

May 2015 / 13


had the expertise, with access to broad resources related to collection and treatment. Greminger: We wanted a company with experience. We were looking for experience, help and guidance. It was important that they would work well with city staff. Brunke: If we were to go through the process today, we would look at things like the history of the company – how long they have been operating and what kind of track record they had. We would certainly speak with other cities for which they had performed work. It would be important to us to know how they worked with existing staff and how many of our staff would be offered opportunities with the contract operator.

What Benefits Have You Seen Since Hiring A Water And Wastewater Contract Operator?

14 / May 2015

Kehrman: We have, for the first time in more than a decade, stabilized our finished water. Due to our type of system, we have to blend with raw water and this can be very problematic. Our operator immediately upgraded the plant. Previously, there was really no accurate measure of what we were producing; they formed a water study group with local manufactures and settled on a final product and the city of Nevada is now providing a consistent, stable water product. Another major benefit we have experienced has been safer and better working conditions for our employees. Prior to our contract operator, the number one issue voiced by employees was the feeling that safety was not a priority. Not only did our contract operator hire most of our former staff, but due to improved training, we have won the company’s safety award for excellence two years in a row. We’ve also seen economic benefits stemming from growth. Prior to the partnership, our community had not The Missouri Municipal Review

raised water/sewer rates in more than 20 years, resulting in a lack of basic maintenance and lack of expansion on the sewer side. Since we’ve improved the delivery of service, we’ve been able to raise rates twice, resulting in our ability to aggressively build and develop areas of town that were previously not capable of development. Economic development in Nevada was not going to happen if we were not providing municipal sewer. Today, people understand that investment and infrastructure lead to economic opportunities. Finally, we’ve seen a greater level of cooperation with both customers in town and with regulators. We are now more transparent and that has led to a better relationship with the DNR. We were able to shift from reading water meters in our town of approximately 8,300 persons in four segments every month, to a consolidated system that allows us to read the entire town in a couple of days once a month. This change was made in the first year and is www.mocities.com


much easier for customers and billing. Greminger: Hiring a contractor for operations of the water treatment plant brought engineering experience to the party. Although we had an engineering firm hired, our contractor asked a lot of questions that we would not have known to ask, and made a number of changes that saved us a lot of money. That expertise was a big help and saved hundreds of thousands of dollars that we would not have known we could save. We can proudly report that we have passed our last two inspections with no recommendations. Due to the cost savings we have experienced, we now have in place long-term planning. Has the community noticed a difference in service or are most aware of the change? Kehrman: Initially, the community was extremely hostile to the idea to outsource. In hindsight, it was probably the biggest risk I took. But I had great support from city council, and almost five years later, the community has really embraced it. The feedback has been that we are more responsive to problems, the billing has been streamlined, there is a higher level of customer service, and water users have a stable product year to year. Greminger: The community is just happy that everything works. In the p a s t , pe o pl e c o mp lained th at the chlorinated water didn’t taste good – the taste of the water has gotten better. On the administration side, a tremendous burden has been lifted, since we no longer have to worry about those two parts of the utility service.

What Tips Would You Give other Cities Who Are Considering Entering Into A Similar Partnership? Kehrman: At the onset, administrators will probably face a great deal of confusion and fear by their community, as well as from their own employees. That’s why it is important to make sure it is really the right fit. Determine if you are going to save money, or if the additional money you are going to spend is going to be worth it in terms of service. My own experience has been that there is greater accountability, and we can solve problems quicker and

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in a more definitive manner because of our contractor relationship. There also is a greater focus on preventative maintenance and long-term planning that benefit us financially. Don’t assume that you have to accept the operator’s terms of the contract “as is.” We negotiated the contract and made sure it was written to fit us. A good contract operator will work with you to find a reasonable compromise that is tailored to fit your specific needs. Greminger: Take into consideration the value of having that expertise there when it comes to making improvements to your system – an expert who can work with any existing engineers and talk their language. A contract operator can make suggestions and often save you a lot of money in those cases, giving you someone to watch over your shoulder to make sure the money is being spent the way it should be. Brunke: Make sure you get along with their personnel and that you can trust them. Find someone you can bounce ideas off of, and test their level of expertise. You want to be sure that they integrate well with current staff and administrators.

The Missouri Municipal Review

This article and the interviews was facilitated on behalf of Sandy Neal, vice president of Alliance Water Resources, in an effort to provide firsthand knowledge to those communities who are considering hiring a professional contract operator for water and/or wastewater operations and management. For those communities exploring this type of partnership, the Missouri Municipal League is a valuable resource, as well as other city officials like those listed here who have been through the process.

Follow MML!

@mocities www.facebook.com/mocities www.mocities.com (573) 635-9134

May 2015 / 15


MUNICIPALITIES TURN TO MICRO-SURFACING FOR PREVENTATIVE MAINTENANCE OF ROADS by Doug Rada

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looming nightmare for cash-strapped municipalities is discovering that road maintenance costs will skyrocket due to much-needed rehabilitation. To avoid a catastrophic hit on budgets, more and more Missouri municipalities are turning to preventative maintenance in the form of a paving product developed in Germany in the 1960s – microsurfacing. It’s a mere three-eighths of an inch surface application to roads, but communities are finding that it can prolong the life of roads by as much as 10 years, avoiding a convergence of major road repairs in any one fiscal year. Like investing in a yearly dental checkup, communities such as Branson, Joplin, Osage Beach, Clayton, Creve Coeur, St. Charles and more have opted for corrective measures to extend the life cycle of pavement. For every dollar spent on micro-surfacing, a city can save four to five dollars in major road rehabilitation costs in the future. In considering micro-surfacing as a preventative maintenance solution, municipalities must first evaluate the conditions of their roads. The pavement should be in relatively good to very good condition. Roads are rated on a scale of one to 10. Those suitable for micro-surfacing should rate at least six or better. Roads with significant cracking or sunken sections that are accelerating to the end of its life cycle and likely to undergo a sub-grade failure, require a more intense overhaul and is not suitable for micro-surfacing. For roads in sufficiently good condition, micro-surfacing is an effective sealant to protect the road and its sub grade. Comprised of a dense-graded aggregate, water, asphalt emulsion and mineral filler, it is applied in the following manner: • The surface must be prepared and cleaned of debris and oil spots and any vegetation working its way into pavement;

16 / May 2015

Significant cracks three-eighths of an inch or larger must be filled to ensure water won’t penetrate the pavement; and • The micro-surfacing product is then mixed into a specialty paver and applied to the surface. No compacting is required. If applied properly, the pavement should be open to traffic within one hour. A mile of micro-surfacing can be done in approximately three hours in the morning with the road open to traffic around noon. That’s a far better prospect for citizens who sometimes

The Missouri Municipal Review

have to navigate a month-long detour or longer for a complete pavement overhaul. In addition to extending the life cycle of the road by another seven to 10 years, microsurfacing provides other advantages, such as: • Improved driving conditions, including increased skid resistance; • Controlled oxidation, providing a clean, “newly paved,” look; and • Prevention of gravel from chip and seal projects from damaging vehicles. In addition, micro-surfacing also is an effective strategy for municipal airports, extending the runway life cycle while improving skid-resistance and mitigating loose gravel that can damage engines. In using micro-surfacing as part of long-range budget planning, cities typically rate their roads to properly sequence micro-surfacing as a remedy to put off complete rehabilitation. For example, a municipality with 15 roads to maintain might have five rated six to seven, another five rated eight to 10, and another five rated only fair at five or less. While those roads rated five or less will have to be rehabilitated, municipal leadership can plan to adopt a microsurfacing schedule that addresses roads in poorer condition soonest, and address the roads in better condition as needed in the future. Road rehabilitation is often a burdensome cost for municipalities. But by extending the life cycle of roads by seven to 10 years through microsurfacing, municipalities can avoid fiscal crisis when several roads need to be overhauled in any one year. Doug Rada is general manager of Microsurfacing Contractors, LLC, a division of Byrne & Jones Construction, St. Louis’ largest commercial paving contractor.

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PLAYGROUND SAFETY: MORE THAN CHILD'S PLAY by Gary Gate

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he simple on exercises that, when swing. employed correctly, N o t work to identify areas much too on a play structure that it, but the simple act do not meet current of swinging provides guidelines. Not every much more than just a failure to meet the quick “thrill.” Swinging guidelines is grounds is extremely beneficial for closing or removing to a child’s overall a structure; however, development and participants learn how teaching of cooperation, to prioritize hazards c o m p e t i t i o n , and the steps needed to imagination, and a whole remedy the issues. host of other physical “Anyone involved and psychological with playgrounds at any effects. The value of level should participate play at every stage in in the CPSI course life is imperative to so they can manage well-being. All of these their playgrounds in a The National Recreation and Park Association is ready to assist you with benefits – from a simple safe and professional the Certified Playground Safety Inspector (CPSI) course. Offered twice swing. Now think about each year in Missouri, it has served to certify more than 425 individuals manner,” says the seemingly endless statewide since 2010. Struckwald. options the playground If you are in your parks offer. interested in learning With all of these unique and exciting are up dat ed every t hree y ears t o more about the CPSI course schedule play features, who is responsible for keep current with CPSC and ASTM and all topics covered, visit www. maintaining safety for children and standards. Two days of classroom and nrpa.org/CPSI or www.mopark.org adults as they play, learn, and grow? hands-on instruction are followed by an for more information. Attendees come The Consumer Product Safety examination on the third day. from various agencies, including: Commission (CPSC) estimates 205,000 “I feel the CPSI course is extremely municipal parks and recreation, public injuries occur on playgrounds each beneficial to the U.S. Army Corps of works, school districts, construction year - 15 of these incidents result in Engineers recreation management contractors, playground equipment death. While these numbers may seem program. The Corps of Engineers is designer/installers, day cares, risk small compared to other causes, the the number one provider of federal m a n a g e m e n t c o m p a n i e s , m i l i t a r y fact that an overwhelming majority recreation and it is critical to keep our installations, and more. The Missouri of those injured are young children playgrounds in safe conditions. This Park and Recreation Association hosts is heartbreaking. The question is not course provides the information as two courses per year – one in the St. if, but when will one of these injuries well as training to do just that.” – Bret Louis area and one closer to Kansas h a p p e n o n a p l a y g r o u n d i n y o u r Struckwald, park ranger, USACE City. community. Will you be able to say you The number one cause of injury Are your playgrounds ready for have done everything possible to ensure on playgrounds is from falling. The this summer? Playground safety is no your public playgrounds are as safe as number one cause of death is from accident! they can be? head and neck entrapment on play The National Recreation and Park equipment. It is always sobering to see Gary Gate is the assistant executive director for Association (NRPA) is ready to assist how easily these incidents can occur. the Missouri Park and Recreation Association. you with the Certified Playground Accordingly, the course spends a great You may contact him at (573) 636-3828 or www. Safety Inspector (CPSI) course. Offered deal of time discussing safety surfacing mopark.org. twice each year in Missouri, it has served and identifying hazards that could lead to certify more than 425 individuals to strangulation. Examples: Fasteners; statewide since 2010. The CPSI program partial and fully enclosed openings; offers the most comprehensive and barrier rails; and many more seemingly up-to-date training on playground harmless features. NRPA supplies safety. Course materials and exams testing kits for use during the handswww.mocities.com

The Missouri Municipal Review

May 2015 / 17


PLAYGROUND PLANNING, CONSTRUCTION, AND ACCEPTANCE RECOMMENDATIONS by Patrick Bonnot

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hen submitting a “request for bids” for a public playground, the following should be taken into consideration. Bid documents should clearly indicate the desire for a properly designed, constructed, and inspected facility. Anything less could place the city at odds with the contractor (erector), supplier, or both!

Public Playground Standards

It is important to let bidders know that you require playground equipment and facilities to conform to the current standards for public playgrounds. These standards are referred to as the American Society for Testing and Materials Standard 1487 or ASTM 148711. In addition, the playground should comply with the Consumer Products Safety Commission (CPSC) on public playgrounds publication issue #325, Nov. 2010. Both of these standards are best practices, but not necessarily state or federal law. However, ADA is federal law.

Certifications

The CPSC certification process is completely separate from the ASTM certification. The CPSC certification is unique in that the actual manufacturer or importer of equipment must certify that the equipment conforms to CPSC standards. Due to the fact that some parts of equipment may be imported from overseas, it is important to get a “Children’s Product Certificate” indicating that the whole structure or play equipment complies with CPSC standards. Another important certification that covers both ASTM and CPSC is the International Playground Manufacturers Association certification (IPEMA). IPEMA provides voluntary, third-party product certification services for public play equipment and public play surfacing materials. IPEMA certification provides the validation sought by consumers regarding manufacturers’ conformance to ASTM

18 / May 2015

F 1487 and ASTM F 1292 (specification for Impact Attenuation of Surface Systems – playground surfacing under and around playground equipment). After construction is completed and before the city approves the playground, contracts should require a letter or statement that includes, “as built, the playground complies with ASTM and the CPSC standards for public playgrounds.” These designations are different than the IPEMA certification that refers back to the equipment meeting standards

before installation. The contractor may provide such statement on business letterhead. Ideally, the contractor will use a Certified Playground Safety Inspector (CPSI) to erect the playground at no additional cost to verify the playgrounds’ post-construction conformance.

Other Considerations On Playground Contracts And Construction

Signage should be installed indicating appropriate age of play.

Sample Bid/RFP/Contract Wording Play structures shall meet all provisions of both the CPSC 2010 Handbook for Public Playground Safety and ASTM F1487-11 Standard Consumer Safety Performance Specification for Playground Equipment for Public Use, and be purchased from IPEMA certified manufacturers. IPEMA certification provides the validation sought by the city regarding manufacturers’ conformance to ASTM F 1487. Evidence of compliance shall be submitted and stamped on equipment as required. All pieces of equipment must comply with the accessibility guidelines under the American with Disabilities Act, including those guidelines as described in “A Guide to the ADA Accessibility Guidelines for Play Areas.” Additionally, if an element of the play structure is created by a manufacturer other than the play structure on which it is housed, such as a play panel, the element should have a “Children’s Product Certificate” indicating it conforms to the CPSC rules for public playgrounds. Additionally, the contractor shall present the city with a letter brought forth on business letterhead stating, “The playground provided to the city of (XYZ) was built with and conforms to all ASTM and CPSC standards relating to public playgrounds. Further, it has been either erected by a CPSI or construction was overseen by a CPSI, or a CPSI has inspected the final product and attests to the conformity to ASTM and CPSC standards relating to public playgrounds.”

The Missouri Municipal Review

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MIRMA

BENEFITS:

Missouri Intergovernmental Risk Management Association Phone: 573.817.2554 Web: www.mirma.org

Missouri’s First Municipal Self Insurance Pool

One comprehensive package! Proactive loss prevention training On-site safety training Annual police firearms training Risk Management Grant Program Aquatic audit reimbursement Police accreditation reimbursement Seminars & workshops Video library

COVERAGE:

Workers’ Compensation Property General Liability Public Officials Liability Employment Practices Liability Law Enforcement Liability Automobile Boiler & Machinery Airport

Signs are usually available from the manufacturer indicating which age group is appropriate for a specific type of playground structure. If t h e c i t y i s res p ons ible for playground surfacing, standard ASTM 2223 and ASTM 1292 are good guides for keeping patrons safe from falls. Should the city use mulch as a surfacing material, ASTM 2075 is a good reference. Are your playground components IPEMA certified? Check for certification here: http://www.ipema.org/certified_ products_search.cfm?cert=f1487.

"Due to the fact that some parts of equipment may be imported from overseas, it is important to get a “Children’s Product Certificate” indicating that the whole structure or play equipment complies with CPSC standards."

“The Americans with Disabilities Act (ADA) is a comprehensive civil rights law that prohibits discrimination on the basis of disability. The ADA requires that newly constructed and altered state and local government facilities, places of public accommodation, and commercial facilities be readily accessible to, and usable by, individuals with disabilities. Recreational facilities, including play areas, are among the facilities required to comply with the ADA. The Architectural and Transportation Barriers Compliance Board - often referred to as the “Access Board” - has developed accessibility guidelines www.mocities.com

for newly constructed and altered play areas. The play area guidelines are a supplement to the "Americans with Disabilities Act Accessibility Guidelines" (ADAAG).1  Patrick Bonnot is the loss control and member services director for MIRMA. He can be reached at (573) 817-2554 or at pbonnot@mirma.org.

The Missouri Municipal Review

Footnote: 1Source: U.S. Access Board Summary of Accessibility Guidelines for Play Areas. Technical assistance on the ADA standards is available from the U.S. Access Board. For guidance on the Department of Justice’s ADA regulations or use of standards, visit www.ada.gov. The Great Plains ADA center in Columbia, Missouri is also a very good resource: http://www.gpadacenter. org/

May 2015 / 19


PUBLIC WORKS AROUND THE STATE CAPE GIRARDEAU’S NEW WASTEWATER PLANT NOW OPERATING

A project several years in the making, Cape Girardeau’s new wastewater treatment facility came online Dec. 9, 2014. This marks the largest public works project in Cape Girardeau’s history.

A project several years in the making, Cape Girardeau’s new wastewater treatment facility came online Dec. 9, 2014. This marks the largest public works project in Cape Girardeau’s history. Funding for the new facility was made possible by voters during the April 2011 election. New Missouri state regulations required Cape Girardeau to increase its wastewater treatment capacity. During wet weather, wastewater exceeded the previous plant’s capacity, bypassing the facility and flowing into the Mississippi River without receiving treatment. The Missouri Department of Natural Resources (DNR) no longer permits wastewater bypass. The new facility brings the city of Cape Girardeau into compliance with the new DNR regulations. Ground was broken for the new facility on Sept. 7, 2012. Overseen by city staff, plant construction was completed by contractors. This is the largest wastewater facility in Southeast Missouri and is one of the most advanced plants in the state of Missouri. The new facility has the ability to produce a biosolids fertilizer that can eventually be used by consumers, as well as several new features. More information about the facility and the City’s wastewater division is available at www.cityofcape.org/wastewater.

NEW HAVEN WASTEWATER IMPROVEMENTS The city of New Haven is anticipating completion of a major wastewater improvement project in spring 2015. The project will replace two existing sewer lift stations with one new station, located adjacent to the City's wastewater lagoon. The new station will handle 100 percent of the City’s wastewater flow. The two existing stations, both located in the downtown area, will be abandoned. The project includes construction of more than 1,900 feet of new gravity sewer main. The new mains will carry wastewater flow from the existing stations to the new station, that will be built near the site of a UV disinfection system constructed in 2012. The two stations being replaced both date from the 1960’s and are in need of replacement. A federal grant is paying for a portion of the project. The remainder is being financed through a Certificates of Participation issue approved by the Board of Aldermen. Unnerstall Contracting Co., Pacific, is the general contractor. Donahue and Associates is the project engineer. The total project cost is just over $1 million.

20 / May 2015

The Missouri Municipal Review

The City will replace two existing sewer lift stations with one new station.

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ROADWAY PROJECTS UNDERWAY IN THE CITY OF LEE’S SUMMIT The Lee's Summit Public Works Department has several major projects taking place in 2015. • The Orchard Street Improvement Project is the City's first design-build project and was approved by voters in a 2013 no-taxincrease general obligation bond election. The project will provide new pavement, curb and gutter, an enclosed storm drainage system and complete sidewalk connectivity throughout the area. • Private utility work is underway and road construction is set to begin in July for the Lee's Summit Road Improvement Project, one of six projects funded by a 1/2 cent Capital Improvement Sales Tax approved by voters in 2007. The project is a joint venture with the city of Kansas City. The project includes building a three-lane road with turn lanes, paved shoulders, a multi-use path, street lighting and utility relocation. • The Strother Road project includes reconstruction of the road on a new alignment north of the existing road, and will have two lanes paved with shoulders. The new alignment is necessary for improvements to the Lee's Summit Municipal Airport. The project was approved by voters in a 2010 no-tax-increase general obligation bond election. For more information about the Lee's Summit Public Works Department, visit LSpw.net.

The Strother Road project includes reconstruction of the road on a new alignment north of the existing road, and will have two lanes paved with shoulders.

CAPITAL IMPROVEMENT CAMPAIGN FOR CITY OF PERRYVILLE The city of Perryville has embarked on an ambitious Capital Improvement campaign. New mayor, and former city engineer, Ken Baer wanted the City to refocus on strengthening its infrastructure. It took little convincing, as the rest of the City’s leadership is right behind him. In the next 18 months, the City of Perryville will strategically spend down reserves to complete the following projects: • Line more than 5000 lineal feet of sewer mains • Renovate or repair 20 manholes • Install a new UV system at the water treatment plant • Install more than a mile of new 10” water mains • Install almost 5 miles of new natural gas mains • Erect two new elevated water tanks • Change-out every water meter in the City and replace with a new Perryville Public Works Superintendents Charlie AMR system McLeod, David Clements, Tim Britt and Jeremy • Add an AMR ERT to every gas meter in the city Meyer have a lot of work ahead of them! • Change the sanitation system to new roll-out carts • Complete a $200,000 WWTP study • Remove one existing elevated water tank • Install a new computer odorization module for the natural gas system • Change out every street sign in the City, replacing with the new upgraded reflective signs “We are building an infrastructure that will serve our citizens for the next 40 years or more” says City Administrator Brent Buerck.“Our customers will benefit from added reliability, increased safety and we think there will economic savings as well.”

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The Missouri Municipal Review

May 2015 / 21


CITIES AND STATE FISCAL STRUCTURE 2015: A COMPARATIVE ASSESSMENT OF STATE AND LOCAL FISCAL SYSTEMS

T

he fiscal systems of cities are defined by the states in which they are located. These systems can create an environment that either allows municipalities to fund their share of resident needs and to thrive economically, or constrains the ability of cities to balance budgets and deliver basic services. The latest Cities and State Fiscal Structures report, provided by the National League of Cities' Center for City Solutions and Applied Research, examines how the key components of these systems (fiscal authority, revenue reliance/capacity, state aid, and tax and expenditure limitations) are structured across states.

22 / May 2015

1. Fiscal Authority: Municipal fiscal authority is a city’s access to general taxes on sales, income, and property. We rate municipalities as having authority if they have an option to levy the tax, local option to control the tax rate (within some increment; they have some ability to shift the rate), and if the revenues are for general use (e.g., not earmarked for specific uses). No state uniformly authorizes its municipalities to utilize all three tax sources. 2. Revenue Reliance and Capacity: Municipal revenue reliance is the proportion of revenues that a municipality generates from its own sources for general use. It determines whether a city’s fiscal policy decisions

The Missouri Municipal Review

can impact its fiscal direction. We examine the share of general fund revenues derived from local sources, including major taxes (property, sales, income), fees and charges (since fees and charges are usually set locally). On average, U.S. municipalities derive approximately 71 percent of their general fund revenues from own-source revenues, including 24 percent from property taxes, 13 percent from sales taxes, 3 percent from income taxes and 32 percent from fees and charges. 3. State Aid: State aid is the share of general revenue from state sources. On average, state aid makes up 17 percent of city general fund revenues. 4. Tax And Expenditure Limits: Voter- or state-imposed (constitutional

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or statutory) tax and expenditure limitations (TELs) require that local governments tax or spend according to state regulations. There are two types of TELs that we examine those that constrain the property tax in particular and those that constrain overall revenue spending increases. Currently, 41 states impose some form of a TEL on their municipalities.

Summary

With these criteria in mind, several states stand out as “ahead of the pack,” or provide their cities with a greater degree of local authority than other states. Alabama and Missouri both provide some municipalities with a higher level of local authority, namely by allowing Alabama municipalities and Missouri’s two largest municipalities authorization to levy an income tax in addition to the local property and sales tax. More local authority is, however, offset by low levels of state aid relative to other states and, for Missouri, a potentially binding TEL also figures into the mix. New York and Pennsylvania also appear to be ahead of the pack. Although New York has a potentially binding TEL, the state does provide additional local authority to a significant sector of the state’s population through granting New York City and Yonkers the authority to levy income taxes. Similarly, Pennsylvania provides some additional local authority through the sales tax provided to Philadelphia (no other municipality in the state is permitted to levy a sales tax), its state aid level is particularly high, but it has a potentially binding TEL. Due to their broad-based tax bases, municipalities in Ohio, Kentucky, and Washington are placed in the “ahead of the pack” category as well. Moreover, even though all three operate under “potentially binding” property tax limitations, the effect is in large part mitigated by the broad tax base. In this regard, municipalities in these states are less likely to adjust tax or assessment issues because the tax bases are flexible and broad. Municipalities in states whose tax bases are narrow might be inclined to adjust their revenues by tinkering with the property tax system; the municipalities in these three states have more options. Hence, we place them in the “ahead of the pack” group. Our assessment of “behind the pack” municipalities places considerable

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weight on local authority and reliance in combination with low ratings on one of the other factors. For example, a group of states are characterized by low authority and reliance in combination with a potentially binding TEL (Idaho, Maine, Massachusetts, New Jersey, and Rhode Island). Another set of states are characterized by low levels of authority, reliance, and state aid (North Carolina, Oregon), or low levels of authority, reliance, and capacity (Connecticut and New Hampshire). West Virginia perhaps has the most constrained combination, with low levels of authority, reliance, state aid, and the presence of a potentially binding TEL.

file:///H:/Review,%20Misc,%20 Board%20and%20Article-Photos/ Misc/NLC_CSFS_Report_WEB.PDF. The previous analysis conducted in 2008 can be viewed at http://www. nlc.org/Documents/Find%20City%20 Solutions/Research%20Innovation/ Finance/cities-state-fiscal-structure2008-rpt.pdf. This summary article was reprinted from the National League of Cities' website at http://www.nlc.org/find-city-solutions/ city-solutions-and-applied-research/ finance/cities-and-state-fiscal-structure.

Conclusion

Compared with the 2008 analysis of cities and state fiscal structures, the lack of change in each of the four structure components is striking given radical economic shifts that have ensued, but not wholly unexpected. Local fiscal health remains below prerecession levels despite burgeoning broader economic recovery in part because authorization of more local revenue authority and other enhanced capacity measures to allow cities to leverage local economic vitality are rare. The full Cities and State Fiscal Structures report can be viewed at

The Missouri Municipal Review

May 2015 / 23


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2015 Elected Officials Training Conference June 11-12, 2015 Holiday Inn Executive Center Columbia, MO Tentative Agenda

Thursday, June 11, 2015 9:00 a.m. Registration 10:00 a.m. Welcome 10:10 a.m. OVERVIEW MUNICIPAL GOVERNMENT: Where Cities Fit in the Federal System/Role of Elected Officials 11:00 a.m. CONDUCTING CITY BUSINESS: Ordinances, Resolutions, Motions & Parliamentary Procedures Noon LUNCH 1:00 p.m. BUDGETS 2:15 p.m. Break 2:30 p.m. ETHICS 3:30 p.m. Break 3:40 p.m. LIABILITY AND RISK 4:45 p.m. Adjourn 5:30 p.m. RECEPTION Friday, June 12, 2015 7:30 a.m. BREAKFAST 8:00 a.m. SUNSHINE LAW 9:15 a.m. Break 9:30 a.m. CONSTITUENT RELATIONS AND SOCIAL MEDIA 10:25 a.m. Break 10:35 a.m. TAXATION AND REVENUE 11:30 a.m. MML SERVICES: Website, MGI, Publications, Advocacy Noon

Conference Adjourns – Lunch On your own

Post Conference Sessions

MGI WORKSHOPS *Free to EOT conference attendees; $45 to non-attendees 1:30 p.m. ECONOMIC DEVELOPMENT 2:30 p.m. PERSONNEL LAW POST CONFERENCE – SPECIAL OPPORTUNITY 1 p.m. Truman School - Video Conf. with Australian Officials * $10 Registration Fee, Includes Parking Pass (Limit 20). The Institute of Public Policy at the Truman School of Public Affairs and the Australian Centre of Excellence for Local Government in conjunction with the Missouri Municipal League are sponsoring a special opportunity for attendees of the 2015 Elected Official Training Conference to learn about issues facing local governments in Australia. Emphasis will be on financial sustainability and government reorganization. This event will take place in the state of the art video conference center in the Ellis Library on the Mizzou campus. Registration for this is event is $10 and includes a parking pass. Registration is limited to 20. Registration Fee: $130 per person; includes lunch, reception, breakfast, conference materials, and both MGI Workshops. If you plan to attend only the MGI Workshop the registration fee for the workshop is $45. All registrations to be made online, regardless of payment option. If paying by check, please select the "Bill Me" option for your payment method. Hotel Reservations: Please make room reservations directly with the hotel: Columbia Holiday Inn Executive Center (800465-4329). When making hotel reservations, let the hotel know that you are with the Missouri Municipal League - Group Block ML5 to receive the special conference rate of $95 plus any applicable taxes and surcharges. Check-In is not available until 4 p.m. with check-out at 11 a.m.

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The Missouri Municipal Review

May 2015 / 25


2015 MML INNOVATION AWARDS We know you are tackling challenges in innovative ways and improving your communities each day. Tell us about it! Submit your entry for the 2015 MML Innovation Awards and showcase the amazing work you do. Submit your project to the League by July 10, 2015. Awards will be given out at the MML Annual Conference in September. www.mocities.com

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MML Calendar of Events 2015 May 4-8 6-8 15 25 27 31 - June 3

Missouri Local Government Week 2015 MCMA Annual Spring Conference, Lake Ozark, Missouri Missouri General Assembly Adjourns MML Office Close —Memorial Day Observed MML Central Meeting - Columbia, Missouri 79th Annual IPMA-HR Central Region Training Conference Kansas City, Missouri

June 11-12 17

MML Elected Officials Training Conference, Columbia, Missouri Missouri Digital Government Summit, Jefferson City, Missouri

July 3 10-12 16

MML Office Closed —Independence Day Observed 2015 MMAA Summer Seminar, Lake Ozark, Missouri MML West Gate Civic Leadership Awards Banquet — ­­ Blue Springs, Missouri

September 7 MML Office Closed — Labor Day Observed 15 Financial Disclosure Ordinance Deadline 20-23 MML Annual Conference, Kansas City, Missouri For more events, visit the events calendar at www.mocities.com.

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EXECUTIVE DIRECTOR … The Macon County Economic Development (MCED) Board of Directors is seeking qualified applicants for the position of Executive Director. Interested persons may pick up an application at the MCED office or email a request to sgoulder@cvalley. net . Completed application and resumes should be emailed to sgoulder@cvalley. net or mailed/hand delivered to: Macon County Economic Development; 410 North Missouri Street, Suite D; Macon, MO 63552. MCED conducts pre-employment background checks and is an equal opportunity employer. Questions should be directed to Sue Goulder at 660-3855627

DIRECTOR OF PLANNING, ZONING, AND ECONOMIC DEVELOPMENT … City of Manchester, Missouri, is seeking a qualified applicant for the position of Director of Planning, Zoning, and Economic Development. Applicants must have a Bachelor’s Degree in planning, public administration, or a related field (Master’s Degree and AICP certification preferred) and at least five years’ experience in municipal planning, including: zoning, redevelopment, subdivision, development review, and site planning. Salary is DOQ. Interested applicants should send a resume, cover letter and references, along with a salary history, to: City of Manchester, Missouri, Attn: Andy Hixson, City Administrator, 14318 Manchester Road, Manchester, MO 63011. Resumes will be accepted until the position is filled. EOE

www.mocities.com 26 / May 2015

The Missouri Municipal Review

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The Missouri Municipal Review

May 2015 / 27



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