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06-23-14 CC Reg Mtg AgendaCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JUNE 23, 2014 AGENDA 1. CONVENE CITY COUNCIL MEETING A. Roll Call B. RevieNy Agenda 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes, June 9, 2014 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Zerby Hotvet Siakel Sundberg Woodruff 3. CONSENT AGENDA - Motion to approve items on Consent Agenda & Adopt Resolutions Therein: NOTE: Give the public an opportunity to request an item be remo>>ed from the Consent Agenda. Comments can be taken or questions asked following remo>>al from Consent Agenda A. Approval of the Verified Claims List B. Appointing the 2014 Primary and General Election Judges and Establishing an Absentee Ballot Board C. Approval of the 2015 -2017 Joint Cooperation Agreement/Community Development Block Grant (CDBG) Program D. Approval of Cooperative Agreement Nvith MNDOT for the County Road 19 and TH 7 Traffic Control Signal Attachments Minutes Claims List Cleric's memo, Resolution Administrator's memo, Resolution Director of Public Works' memo, Resolution E. Approval of Water Connection Agreements Planning Director's • Ron Zenk at 5435 Timber Lane to Tonka Bay Water System memo; Resolutions; • NSP Co. (Xcel Energy) at 5505 Co. Rd. 19 to Tonka Bay Water System Connection • Gerhardt Mahling at 23425 Academy Avenue to Excelsior Water System Agreements F. Approve Plans and Specifications and Authorize Ad for Bids for the 2014 Engineer's memo, Sealcoat Project Resolution G. Participation in Local Performance Measures Finance Director's memo, Resolution CITY COUNCIL REGULAR MEETING AGENDA — JUNE 23, 2014 Page 2of3 7. PARKS A. Attachments H. Establishing Dates for the 2014 Deer Management Program Planning Director's Chair Justin Mangold memo 4. MATTERS FROM THE FLOOR Minutes (No Council action Nvill be taken) Authorize Preparation of Feasibility Report and Professional Services 5. PUBLIC HEARING A. 7:15 PM Public Hearing — Vacate Drainage & Utility Easements Planning Director's Applicant: Darin Busch memo; Draft Location: 5360/5366 Vine Hill Road Resolution B. Approval of Minor Subdivision Planning Director's Applicant: Darin Busch memo, Draft Location: 5360/5366 Vine Hill Road Resolution 6. REPORTS AND PRESENTATIONS Resolution A. Abdo, Eick and Meyers, 2013 Audit Report Finance Director's Planning Director's memo 7. PARKS A. Report on June 10, 2014 Park Commission meeting by Park Commission Minutes Chair Justin Mangold 8. PLANNING Minutes A. Authorize Preparation of Feasibility Report and Professional Services Planning Director's Agreement for SmithtoN -,n Road East Trail memo; Draft Resolution B. Approval of Minor Subdivision and Combination Planning Director's Applicant: Bill Zucco memo; Draft Location: 4485 and 4545 Enchanted Point Resolution C. Approval of Final Plan/Final Plat — Summit Woods P.U.D. Planning Director's Applicant: Homestead Partners memo, Draft Location: 23040 Summit Avenue Resolution D. Approval of Conditional Use Permit Planning Director's Applicant: Northern State PoNver Co. (Xcel Energy) memo, Draft Location: 5505 Countv Road 19 Resolution 9. ENGINEERING /PUBLIC WORKS A. Approve Plans and Specifications and Authorize Ad for Bids for the Galpin Engineer's memo, Lake Road Sidewalk Project Resolution CITY COUNCIL REGULAR MEETING AGENDA — JUNE 23, 2014 Page 3of3 Attachments B. Establishing Temporary Road Restrictions — Enchanted Lane Director of Public Works memo, Resolution C. Approve Plans, Specifications and Authorize Ad for Bids for Sunnyvale Lane Engineer's memo Improvements 10. GENERAL /NEW BUSINESS A. Credit Card processing for Utility Bills Finance Director's memo, Resolution B. Christmas Lake No Wake Restriction Request Planning Director's memo 11. OLD BUSINESS 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Month1v Financial Report Finance Director's memo 2. Trail Schedule Trail Schedule B. Mavor and Citv Council 13. ADJOURN CITY OF SHOREWOOD 5755 Country Club Road • Shorewood, Minnesota 55331 . 952- 960 -7900 Fax: 952- 474 -0128 • -,N-ww.ci.shorewood.mn.us • citchall 'ciici.shorewood.mn.us Executive Summary Shorewood City Council Regular Meeting Monday, June 23, 2014 7:00 p.m. A 6:00 PM Work Session is scheduled this evening. Agenda Item #3A: Enclosed is the Verified Claims List for Council approval. Agenda Item 4313: This resolution appoints the 2014 Election Judges and establishes the Absentee Ballot Board. Agenda Item 43C: This resolution authorizes the execution of a joint cooperation agreement between the city and Hennepin County for participation in the Urban Hennepin County Community Development Block Grant Program in FY 2015 -2017. Agenda Item 431): This resolution authorizes the agreement Nvith the State of Minnesota, department of Transportation, for participation in the power, operation and maintenance of the new Signal System and EVP System on TH 7 at CR 19. Agenda Item 43E: Shorewood has received three requests from property oN -,ners Nvishing to connect to adjoining cities' Nvater systems – two in Tonka Bay and one in Excelsior. One of the Tonka Bay requests is for the fire suppression system associated Nvith Xcel Energy's new buildings. Resolutions and Nvater connection agreements for all three requests are included in your packet for review. Upon approval, these requests Nvill be forwarded to the respective cities. Agenda Item 4317: This item approves the plans, specifications and authorizes the advertisement for bids for the 2014 sealcoat project. Agenda Item 43G: This resolution commits the city to participate in the Council on Local Results and Innovation performance measures program for 2014. The benefits are a cash payment of approximately $1,000. Agenda Item 431-1 Based on an informal resident survey, there appears to be consensus among the Council that the Deer Management Program should be continued for 2014. Staff has Nvorked Nvith MBRB to propose four Nveekends in October and November. Agenda Item 44: Matters from the Floor— members of the public have an opportunity to address the Council on an issue not on the agenda; no Council action Nvill be taken. Agenda Item 45A: Darin Busch has arranged to purchase 20 feet of his neighbor's property to enlarge his lot. Part of that transaction involves the vacation of existing drainage and utility easements and the creation of new ones. A public hearing has been scheduled for Monday night's meeting. Executive Summary — City Council Meeting of June 23, 2014 Page 2of2 Agenda Item 4513: The Planning Commission has recommended approval of a minor subdivision and combination requested for Darin Busch, 5360 Vine Hill Road. The recommendation included trading drainage and utility easements (see item 45A). Agenda Item 46A: Andrew Berg from Abdo, Eick and Meyers, LLP Neill present the 2013 Comprehensive Annual Financial Report this evening. Staff recommends council accept the 2013 annual financial report. Agenda Item 47A: A report on the June 10 Park Commission meeting Nvill be provided by Park Commission Chair Justin Mangold. Agenda Item 48A: Staff recommends that the Council authorize WSB & Associates to prepare a feasibility study and authorize the Professional Services Agreement for the next segment of trail identified in the Trail Implementation Plan — SmithtoN -,n Road (East). Agenda Item 48B: Bill Zucco proposes to subdivide 50 feet from the easterly side of his property at 4485 Enchanted Point and legally combine it N ith the property to the east (4545). The Planning Commission has recommended approval, subject to the Planning Director's memorandum, N ith the exception of requiring additional right- of -Nvay from the easterly lot. Agenda Item 48C: Homestead Partners has submitted their final plat and final plan for the Summit Woods P.U.D. A development agreement attached to the resolution incorporates the conditions previously identified for approval. The proposed alternative road improvements presented by the City Engineer are on hold pending a traffic study from MNDOT. The plat Nvorks N ith any of the alternatives being considered. Staff has recommended approval of the final plat and final plan. Agenda Item 48D: Northern States PoNver Company proposes to construct two accessory buildings on its Xcel Enemy site at 5505 County Road 19. The Planning Commission has recommended approval of a conditional use permit allowing the construction, subject to the applicant providing a landscape plan for the County Road 19 side of the site. The plan has been submitted and is under review by the Planning Department. Comments Neill be presented at Monday night's meeting. Agenda Item 49A: Staff recommends approval of a resolution approving the plans and specifications and authorizing advertisement for bids for the Galpin Lake Road SideNvalk Project. Agenda Item 4913: This item establishing temporary road Nveight restrictions on Enchanted Lane. Agenda Item 49C: Staff recommends approval of a resolution approving plans and specifications and authorizing advertisement for bids for the Sunnyvale Lane Improvement Project. Agenda Item 410A: Staff recommends approval of a resolution authorizing staff to enter into payment processing N ith Springbrook software and their merchant processor for utility customers. Agenda Item 41 OB: Late in the afternoon on June 19, staff received a request for no Nvake restrictions on Christmas Lake, due to the high Nvater level. Additional information Nvill be provided prior to or at the meeting regarding this request. Agenda Item 412.A.1: The monthly budget report is provided for Council information. Agenda Item 412.A.2: The Trail Schedule is provided for Council information. Agenda Items 41213: Mayor and City Council Members may report on recent activities. CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JUNE 9, 2014 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mavor Zerbv called the meeting to order at 7:00 P.M. A. Roll Call Present. Mavor Zerbv, Councilmembers Hotvet, Siakel, Administrator Jovnes, Citv Cleric Panehy shyn Director Nielsen; Director of Public Works BroNN' Absent: Councilmember Sundberg B. Review Agenda Hotvet moved, Siakel seconded, approving the agenda as press 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, May 27, Woodruff moved, Hotvet seconded, Approving the City Cour 2014, as presented. Motion passed 4/0. #2A 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Woodruff; Attornev Keane; Citv ance Director DeJong, Planning City Engineet Hornby passed 4/0. Work Session Minutes of May 27, B. City Council Regular Meeting Minutes, May 27, 2014 Woodruff moved,,Siakel seconded,,Approving the City Council Regular Meeting Minutes of May 27, 2014, as presented. Motion passed 4/0. 3. CONSENT AGENDA Mavor Zerbv reviewed the items on the Consent Agenda. Woodruff moved, Hotvet seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolution Therein. A. Approval of the Verified Claims List B. Adopting RESOLUTION NO. 14 -041, "A Resolution Establishing the Purchase Card Policy" C. Accept Proposal for Materials Testing for Valleywood Lane Reconstruction Project Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 2 of 20 4. MATTERS FROM THE FLOOR Tom Shelly, 27055 SmithtoN -,n Road, stated he is present to talk about drainage concerns at the intersection of Cajed Lane and SmithtoN -,n Road. He stated he and his family have lived near that intersection for 10 Nears. With the addition of the SmithtoN -,n Road Nvest sideNvalk, the drainage issue of stagnant Nvater is the Nvorst he has seen, noting he thought the sidewalk Nvas a great idea. He asked if the City has a solution to help mitigate that problem and if so when Nvill it be implemented. Mayor Zerby noted that the Minnehaha Creek Watershed District (MCWD) has declared the highest Nvatermark in Lake Minnetonka since records Nvere kept in 1906. He stated that because of the ground Nvater saturation and the amount of rain there are drainage issues throughout the City. Director BroN -,n has been diligent about trying to address the problems. And, Council is interested in pursuing more permanent solutions. Director BroN -,n asked Mr. Shelly if he Nvas talking about the most recent incident about odorous stormwater flowing doN -,n the edge of Cajed Lane or is it the sideNvalk project. Mr. Shelly stated before the sidewalk was constructed the: With the sidewalk there. He understands that Nvater has t backyards of properties along Beverly Drive needs to go continues to be standing Nvater in front of his property and Director BroN -,n explained as part of the Smithtow'. Nvas crushed in front of Woodside Cemeterv. Water Staff met with the contractor the previous week as The issue is further complicated by the tile line that Mr. Shelly clarified his property is located between Director BroN -,n clarified the a Engineer Hornby ;stated that 1 sidev, allc project area: The Unfortunately, it has been toc there are areas N-,-here Nvater is the punch list of items that the he is talkinLy about to be stagnant Nvater. That issue is Nvorse Jown that area because the Nvater in the He does not understand whN- there his neighbor's property. sidewalk project staff believes a drain tile line Aed up in front of the Twin Orchards property. ontractor Neill be coming back to address that. yin Beverly Drive area. Road and Cajed Lane. Cemeterv. for needs to do the final grading and turf establishment in the in last fall was for erosion control only; it is temporary. is contractor to get in and do the Nvork. The City is aware that n the ditches. His staff engineer has been noting those areas on has to resolve before the project is closed out. Mr. Shelly asked if there is any idea as to when the drainage issue at that southeast corner of the intersection of Cajed Lane and SmithtoN -,n Road Nvill be resolved. Director BroN -,n asked him to call the office and staff Nvill discuss his drainage issue. BroN -,n noted that dry Nveather Nvould help Nvith mitigating drainage issues immenset . The contractor cannot do the final grading until it is dry enough to grade. Mr. Shelly asked if staff views the problem as a grading issue. Director BroN -,n clarified that the particular area being talked about has a number of issues. There is the Beverly Drive issue, there are some corrections that the contractor needs to make on the drainage system, and there is the grading issue. Mayor Zerby thanked Mr. Shelly for bringing the issue to Council's attention and for his patience. He stated he is confident that staff Neill Nvork Nvith him on how to mitigate the issue. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 3 of 20 George Greenfield, 24715 Yellovystone Trail, expressed his appreciation to the Public Works Department for the Nyork it did this past winter and noted it does an outstanding job all Near. He stated there is no comparison between the City's parks and roadw-aN-s and those in the neighboring cities. He also expressed appreciation for the masons and whoever oversaw the construction of the Smithtown Road wvest sidew-alk. He stated the sidew-alk is not only practical it is a thing of beauty as well. Mr. Greenfield explained that about 18 months ago he asked Council to ask the owner /operator of the Minnetonka Country Club golf course to report to the City the amount of chemicals and fertilizer it puts down on the course and the amount of wvell wvater it uses annually. At that time Attornev Keane confirmed that wvater is a public resource. There are a significant number of residential properties abutting the golf course property and those property owners do not vivant their wvater supply or wvater quality compromised by whatever is done on the golf course. He does not think that wvould be an onerous request for the City to make. Mr. Greenfield stated in his immediate neighborhood o properties foreclosed on. In each instance the bank that fc maintaining the property. The lawn has not been mo Yellowstone Trail. That created an invitation for people- speak to the banks that own foreclosed properties within tl degrades the neighborhood when the properties look poor. Mr. Greenfield asked Council if the City has consid valet service for children that attend the Minnew'as of cars lined up every school day morning and after the air just so the driver's children are not affect( thought the School District deceived the City wher half full 350 days of the v ear. decent houses Nverk addition to the fact that the District attempts to lure and tear and the City's infrastructure from drivers and hundreds of trips to the School each year so School District has some responsibility to'coopera the wear and tear, Mr. Greenfield thanked Council for ie last Tthree v ears' there have been three sedon the property, did a very poor job of this year on property located. at 24745 ik into the house. He asked that City staff y limits about keeping the properties up. It A asking the Minnetonka School District to provide Elementary School,. He explained there are dozens on, The cars are running and spewing pollution into by inclement weather. From his vantage point, he asked to expand its parking lot. The lot is not even ,moved as part of that process. That indulgence, in ildren from other school districts, causes more wvear ho live in another school district making hundreds ;ir children can go to that School. He believes the ,vith the City and possibly reimburse it for some of to come before it. Mayor Zerby explained the City deals with nuisance issues (e.g., the long grass) on a complaint basis. He thanked Mr. Greenfield for brin -itia that to Council's attention. Peter Holmberg 5955 Cajed Lane, noted he lives next door to Mr. Shelly and has lived on that corner for more than 30 years. He stated children are getting hurt by all of the sand in the drainage issue area when they come around the corner on their bicycles. He has complained to the City and from his perspective has gotten nowhere. He has seen high wvater before and seen the area flooded before. He noted he loves the new Smithtown Road wvest sideNvallc. He has never observed so many people Nvallcing by his house. Unfortunately, from his perspective it does not wvork. Mr. Holmberg stated the two catch basins at Afton Road are located right before the sidewalk and catch the stormwater before it reaches the sidewvallc. The stormwvater flows down both sides of Cajed Lane and hits an opening similar to Lake Pepin. The sand settles at the bottom of the pedestrian ramps. The catch basin is uphill from there on the other side of the sideNvalk. He questioned the reason for having the wvater flow past the sidewalk and around the corner to the catch basins. There is a concrete column that comes CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 4 of 20 up in his yard and one in Mr. Shelly's yard. The concrete lip is about one foot higher than what it used to be. All of the stormNvater backs up to that dam before it spills. It is a constant mess there. From his perspective it Nvas poorly designed. He noted the situation is the Nvorst he has observed in 30 years. It needs to be corrected. He asked if any members of Council have gone to look at the situation on that corner. He stated he Nvould be Nvilling to give them a walking tour of that area. He encouraged them to give him a call if they are interested in doing that. He stated he hopes the contractor for the sideNvalk project is banned from bidding on wvork in the City ever again. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Report on Lake Minnetonka Nybeck, LMCD Executive Representative Mayor Zerby stated Greg Nybeck, Lake Minnetonka C is present to give an update on LMCD activities and the Nvbeck. Mr. Nybeck stated he was going to talk about the programs and activities, and review the proposed 2015 With regard to the 2015 budget, process, Mr. Nybeck , Officers) met on April 22 to alk about the first draft had a preliminary review of the budget and the Bog LMCD member cities. He has been going out to memo a i fornal meeting for elected officials to discuss the and hopefully approve the 2 done on June 25; Bv State Si in District (LMCD) ,Activities by Greg and 'Deborah Zorn, LMCD Board -ation District (LMCD) Executive Director, sed 2015 LMCD budget. He Nvelcomed Mr. CD 2015 budget process, highlight the 2014 CD budget. - xplained,the LMCD Executive Committee (Board of the 2015 budget. On May 14 the LMCD Board xd gave approval to send the draft budget to the er cities to present the budget. On June 5 there Nvas budget. On June 11 the LMCD Board will review ended. If not, the final review and approval will be to be sent to the member cities by July 1. Mr. Nybeck highlighted the LMCD's ,2014 programs and activities. Changes Nvere made to the LMCD Code for commercial marinas, 'the Howard's Point Marina and the Shorewood Yacht Club are located in Shorewood. Last fall the LMCD had a workshop with the marina owners because the owners thought some of the Code, wvas outdated,, An effort wvas made to identify proposed changes that were eventually presented to the LMCD Board for consideration during February 2014. There changes were approved. The first wvas to allow' a 200 foot long dock use area. The second wvas an exemption for commercial marinas Nvas added so that they do not have to provide public amenities. A number of those qualified commercial marinas have special density licenses. In order to get the increased density up to the 1 per ten the marinas had to provide public amenities many of which Nvere outdated. The Board concluded the marinas are an amenity in themselves. The last approved change Nvas to streamline the processing of minor changes. For any minor change the application can be processed by LMCD staff. There are other possible commercial facility changes that may be considered. For example, yacht clubs, municipal docks, and commercial— transient docks. Mr. Nybeck talked about the 2014 Lake Minnetonka Boater Safety Education Program. The Program has been fully sponsored by Save the Lake using the contributions it receives from stakeholders around Lake Minnetonka. The Program objective Nvas to have participants wvork directly Nvith presenters to secure a CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 5 of 20 Minnesota Department of Natural Resources (MN DNR) Youth Operator Permit. The LMCD partnered with the Hennepin County Sheriff's Office Water Patrol on the effort. One course was held on April 26. There is another scheduled for June 23. And there will be another in the fall but the date has vet to be determined. Attendees are age 12 — 17 and their guardians are encouraged to participate. Upon completion of the course the participants received the Youth Operator Permit, they have knowledge of Minnesota boating laws, they understand on -board safety best practices, and they have and understanding and awareness of Lake Minnetonka's unique boating experience. The course is free to the participants. Mr. Nybeck explained Lake Minnetonka has been in a "high Nvater" situation since about May 13. The situation has gotten worse in the last few weeks. When the Lake level gets at or above 930.00 feet the LMCD Code Section 3.021 states the LMCD Executive Director may declare'" high water after five consecutive days and after eight consecutive days high water shall be declared. When the level gets to 930.25 high water is declared immediately. That happened on May 13�. One of the challenges with the current ordinance is it is either minimum Nv ake 6601 from shoreline around the entire Lake or a number of bays are entirely minimum wake. It is difficult for the,LMCD to commit to the public which is which. And, it is difficult for the public and public safety to determine how far 600 feet out is. The burden of proof is beyond reasonable doubt and that is a very challenging thing. The LMCD is going to reevaluate the ordinance. On Mav 30 the Lake level was 930.21 feet. By June 1 it has risen to 9a0.65 feet. The Lake had risen 4.5 — 5 inches in 48 hours. The Lake was at a record high. Prior to that, the record high had been 930.52 feet in September 2002. On June 5 the LMCD Board approved an emergency high water ordinance declaring all of Lake Minnetonka minimum wake until the level drops below 930.30 feet for three consecutive days. At that point the restriction would remain entirely at minimum wake or it would go back to either minimum Nvake up to 600 feet from shoreline with some bays being minimum ivake. The level has to drop below 930.00 before all restrictions can be removed. Mr. Nybeck then explained the LMCD is willing to do whatever it can to help people provide aquatic invasive species (AIS) peace officer training at the local level. The LMCD's vision is to empower local agencies with the ability to enforce (the enforcement option is left to the agency). The LMCD is not saying that should be the primary activity for law enforcement agencies. But, if an officer is driving along and they see the drain plug is not pulled from Nvatercraft or if they see Nveeds hanging from the Nvatercraft or trailer then can pull the person over'to °educate them or cite the driver. An officer cannot cite a person unless they have had AIS enforcement training. The LMCD would coordinate the training with the MN DNR. The traininu is free of char€e. Mr. Nybeck requested that the AIS enforcement capability be discussed with South Lake Minnetonka Police Department ( SLMPD) Chief Litsey, find out how many SLMPD patrol officers have been trained on AIS enforcement, and establish a goal to have all officers trained by the 2015 boating season. Mayor Zerby noted that the SLMPD has had some experience, specifically with the milfoil harvesters, in 2013. Hopefully that training has been impressed on the LMCD harvesters and contractors. Mr. Nybeck highlighted the proposed 2015 budget. It reflects a 0.6 percent levy overall increase when compared to 2014 ($342,492 versus $340,615 in 2014). There is a 1.1 percent decrease in expenditures when compared to 2014 ($582,492 versus $588,805 in 2014). There is a 2.0 percent increase in personnel services ($254,216 versus $249,143 in 2014). There is a 63.8 percent decrease in office lease and storage because of the relocation of the LMCD office to the Mound City Hall last fall. The budget for the Eurasian Watermilfoil (EWM) harvesting is $95,000; the same as in 2014. The $35,000 transfer from the CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 6 of 20 AIS reserve Fund to the Equipment Replacement Fund reflects a $10,000 increase. The $30,000 for AIS prevention and management projects remained the same. A new line item Media — Cable and Internet in the amount of $3,300 Nvas added for recording of LMCD Board meeting. Mr. Nybeck noted the LMCD has made a concerted effort to keep the levy* to the member cities relatively flat from 2009 to 2014. It has been around $330,000. He explained the LMCD's 2014 le-vv to Shorewood Nvas $33,123. For 2015 it Nvould decrease to $33,032. Councilmember Sialcel stated she has seen a lot of advertising for the Woodland Cove development. She asked if the LMCD is doing anything related to that. Mr. Nybeck stated the docks have been approved. He thought the first docks that Neill be constructed Nvill be in the channel area. The developer has not gotten back to him regarding construction of the docks. He thought it would be difficult to construct the docks exactly like the plans showed but it should be very* close. He assumes the docks Nvill constructed in parallel Nvith the model homes. Mayor Zerbv stated that one of the founding missions of the LT sewage going into the Lake. There Nvas a recent incident,0th seNN He asked if the LMCD is looking into the issues related to that 1 Nybeck stated it is his understanding that originally the LMCD District Nvere created when raw sewage Nvas being dumped into tl back then. The LMCD has not been actively involved Nvith that sin then stated he is going to the Mound City Council meeting on June more about that. Mayor Zerbv stated the more agencies that can 7. PARKS 8. PL A. Report on Director Nielsen reported on mat Commission meeting (as detailed in B. Report on Director Nielsen rioted that removed. 9. into ) was related to , dealing with raw being dumped back into the Lake. ent that need to be corrected. Mr. the Minnehaha Creek Watershed Lake. There Nvere red algae blooms the sanitary seNver Nvas installed. He and he assumes he Nvill learn a little ion Meeting red and actions taken at the June 3, 2014, Planning of that meeting). Violation in violation on the 4390 Enchanted Point property has been WORKS A. Public Information Meeting on the Storm Water Pollution Prevention Program Mayor Zerby opened the Public Information Meeting at 7:45 P.M. Engineer Hornby stated holding a public information meeting about the City's Storm Water Pollution Prevention Program (SWPPP) is a requirement for obtaining a National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) General Permit; a permit required by the Federal Clean Water Act. The City presents what happened in 2013 relating to the previous year's CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 7 of 20 permit. The public will be provided an opportunity* to comment on the information presented or present issues during the meeting. Jesse Carlson with WSB & Associates, Inc. is present to discuss how the City of Shorewood's Storm Water Pollution Prevention Program ( SWPPP) will guide the City to compliance with the MS4 General Permit. Mr. Carlson had been Nvorking with the City on the MS4 program for the last two years. Mr. Carlson explained in Minnesota the MS4 permit is administered by the Minnesota Pollution Control Agency* (MPCA). Each city* that is regulated by the MS4 program gets issued a general permit. That permit lists a number of activities that a city* needs to comply* with. On August 1, 2013, the MS4 permit got extended. The City of Shorewood had to submit a new application by December 30, 2013. In that application the City committed to doing a number of things to comply with the new program. The Cite had been in the implementation phase of the program for a number of, years. 2014 will be more of a development year during which the program will be reviewed and refined`. The City will move back to an implementation phase in 2015 and continue with that until the permit expires in 2018. All cities within the seven - county* metro area are regulated, . Communities outside of the metro area that have populations of at least 10,000 are also designated MS4. Shorewood has been designated an MS4 since 2003. Some communities were designated in 2006, :Others will likely* be designated in the near future based on the outcome of the 2010 census. Mr. Carlson stated the City s SWPPP has six minimum control measures (MCMs) • MCM 1 — Public Education and Outreach .., • MCM 2 — Public Participation and Involvement • MCM 3 — Illicit Discharge Detection and Elimination • MCM 4 — Construction Site Stormv, ater Runoff Control • MCM 5 — Post - Construction Stormv,ater Management • MCM 6 Pollution Prevention and Good Housekeeping for Municipal Operations Mr. Carlson reviewed the progress the City had made in 2013 to satisA- the MS4 Program. • City Nv ebsitc - it has a: lot of information about stormwater related activities • City newsletter - published nine articles about stormwater related information • Resident guide r it contains information about what residents can do with things such as lawns and landsaninQ • Construction site inspections — when the City does building site inspections it does look for erosion control issues. If there are complaints the City does follow up on them. • Post - construction plan reviews — the City is required to be concerned about construction sites that are one acre or more in size. There were two plan reviews in 2013. • Street sweeping — it is estimated that the City removes 57 pounds of phosphorus annually*. Mr. Carlson highlighted the new requirements the City will need to undertake as a result of the new MS4 General Permit that became effective August 1, 2013. I - General ■ Complete revisions to existing SWPPP to be in compliance with the new permit. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 8 of 20 • Create an organization chart that identifies what departments are responsible for specific best management practice (BMP) activities, enforcement response procedures (ERPs) to compel compliance Nvith illicit discharge detection and elimination (IDDE), construction erosion and sediment control, and post - construction stormwater management. • Identify partnerships Nvith other regulated MS4s, including v'ritten agreements. • Update the stormNvater system map to include all pipes greater than 12 in. in diameter, outfalls, structural stormNvater BMPs, receiving Nvaters, and ponds. • Identify all approved total maximum daily loads (TMDLs) and all activities that Nvill be completed to achieve compliance. • Develop a mechanism to track activities being completed by Shorewood (educational activities, complaints, plan reviews, inspections, etc.). MCM 1 — Public Education and Outreach • Prioritize Education Activities Within the treatment and areas discharging to Nvater [ • Educate the public on IDDE Nvith handout • Document specific MCM I information: MCM 2 — Public Participation and Involvement • Provide public notice of the ann opportunity to comment on or pr+ • Document specific MCM 2 infor r MCM 3 — Illicit Discharge Detection • Develop ERPs to c( comply with the neN- ■ Develop written pros illicit discharges; spill • Complete training of to complete the traini present. • Document specific M 'eNvood areas Nvithout stormwater ve degraded Water quality. public information meeting to provide the public an it issues with the City's SWPPP. ion. I Elimination nce Nvith IDDE Ordinances. Update the ERPs to mn coverage. ores for conducting on -going inspections and for responding to 3ponse, and priority areas. field staff in recognition of illicit discharges. It may be beneficial in the early part of summer when all seasonal staff members are r MCM, 4 — Construction Site Stormwater Runoff Control • Develop ERPs to compel compliance Nvith construction site stormwater runoff control. • Update ordinances to comply Nvith the new permit coverage. • Develop written procedures for completing site plan reviews, inspections, and prioritizing inspections. Create check -lists and inspection forms. • Develop v ritten procedures for receiving public input on active construction sites. • Document specific MCM 4 information. I- MCM 5 — Post - Construction Stormwater Management • Develop ERPs to compel compliance Nvith post - construction site stormwater runoff control. • Update ordinances to comply Nvith the new permit coverage. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 9 of 20 New development of no net increase in volume, TSS (total suspended solids) and TP (total phosphorous) from pre - project conditions. Redevelopment of net reduction of volume, TSS, and TP from pre - project conditions. • Develop v ritten procedures for site plan reviews. • Develop post construction regulatory* mechanisms to allow Shorewood to conduct inspections, perform maintenance, and assess costs to maintain structural stormwater BMPs constructed after the permit is in effect. • Document specific MCM 5 information. I- MCM 6 — Pollution Prevention and Good Housekeeping for Municipal Operations • Complete an inventory* of city* ovmed and operated stormwater (e.g., maps, spreadsheets, best managern • Develop v ritten procedures and a schedule for e, effectiveness of ShoreNvood's ponds that Nvere const treatment of stormwater. Complete inspections (annually*); outfalls (once per 5 year permit term); and, stockpiles and material handling areas (quarter] • Develop and implement a stormwater managelnen Nvith employee's job duties. • Document specific MCM 6 information. Mr. Carlson explained Lake Virginia is the City's, reduction is 21 pounds per year. It's estimated the C the Lake through street sweeping. The City has bees meeting the requirement. There should not be any adc Mr. Carlson stated there are grant, opportunities av, projects. The MCWD has a cost - share Nvhere 50 p( MCWD has not identified a funding cap. The Pi implementation grants requiring a 50 percent matcl (e.g., an infiltration type project). The Minnesota Bo, Nvater partnership grant through the legacy* funds recommended making an application. Mr. Carlson hiuhliuhted next jeilities that contribute pollutants to rnt practices). iluating the TSS and TP treatment icted and used for the collection and for: structural stormNvater BMPs ends (once per 5- year permit term); program to commensurate it. The City's required phosphorus a 41 pounds per year reduction into 3trate to the MPCA that the City is able to help offset costs for public improvement ,ent of the cost could be funded. As of now the lic Facilities Authority (PFA) has point source It likes to fund green infrastructure type projects I of Water and Soil Resources (BWSR) has a clear If there are projects the City Nvants to do he Finalize the Standard 'Operating Procedures for each MCM. Finalize the Enforcement Response Procedures. Reviev, and finalize ShoreNvood's SWPPP. Reviev, ordinances to comply* Nvith the new permit. Come up Nvith a written partnership Nvith other MS4 communities and non - permitted organizations. Develop and go over training Nth the city* staff. Continually* perform inspections for illicit discharges, construction sites, and post - construction sites. Submit the 2013 Annual Report by June 30, 2014. Seeing no one present wishing to speak on this topic, Mayor Zerby opened and closed the Public Testimony* portion of the Public Information Meeting at 7:59 P.M. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 10 of 20 Councilmember Hotvet asked how enforcement between two cities located in different counties is addressed. Mr. Carlson explained each community would have to have a SWPPP and follow the same procedures. He thought the City should be able to review and comment on developments in an abutting city or a Minnesota Department of Transportation (MnDOT) project that the City will receive runoff from. A surface water management plan (a plan to manage drainage) typically talks about inter - jurisdictional drainage issues. That could require some language in the City's ordinance. It is important to have good relationships with those cities and agencies. Mayor Zerby stated that would be a good thing to discuss. In response to a question from Councilmember Woodruff, Mr. Carlson application by December 30, 2013, and it was approved in April or P Near to complete its revisions to its SWPPP. He had proposed to Di completed by the end of 2014 because 2014 is a development year. He a summary of what the City is going to do, written procedures„ ord procedures and so forth. Then 2015 would be an implementation 'ye could be provided to Council for its approval. Woodruff stated the 2015 budget should include funding for .imp, should be enough information to estimate those costs by the time f Mr. Carlson noted that the development costs in 2014 would be Engineer Hornby stated some of the inspections that will have to .t will be done by consultants and some will be done by staff. There 2015. Mr. Carlson stated W SB staff will work with Citv staff to ponds that likely have the most sediment to be insl budget for starting in 2016. Mayor Zerby stated around the Citv, he sees sump the City should encourage that or discourage that. that water. Mr. Carlson explained thafsump pumps water gets pumped on to do not consider sump tai Led the Citv submitted a revised of 2014. That gave the City a ar Brown that the revisions be rlained the SWPPP will include ice amendments, staff training He stated the updated SWPPP costs. He "assumed there budget has to be set in November. )re than the implementation costs. lone as part of the implementation e, there will be consultant costs in loritize pond inspections with the is for dredging the ponds would be )s being drained onto City roadways. He asked if residents are irritated by having to drive through tot be connected to the sanitary* seNver system. The per land and then on to the street. Typically cities communities are providing connections to storm Engineer Hornby stated he is working with a city that is considering putting a solid wall pipe behind the curb. It would essentially be a',sump pump discharge pipe that connects to the storm seNver system just like drain tile would. Services would be provided to each house. There could be a connection at the house or some place in the yard so an air break could be provided. In the winter time when things freeze water has to run over land., Mayor Zerby asked if there" is anything residents can do. For example, could they install in- ground rain barrels? Engineer Hornby stated with the saturated soils and continuing rain the sump pump discharging exacerbates the issue of standing water. Hornby noted the City's ordinance stipulates that sump pump discharge hose cannot be extended into the public right- of -Nvay. Mayor Zerby closed the Public Information Meeting at 8:06 P.M. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 11 of 20 B. Accept Proposal for Geographic Information Services Director Brown explained that Mayor Zerby has been a proponent of using geographic information system (GIS) data to make property and infrastructure information more easily available to staff and residents. Enhanced record keeping is a requirement of the new Municipal Separate Storm SeNver System (MS4) General Permit. WSB & Associates provides GIS services to many communities. Staff asked WSB to provide the City with a proposal to provide those services. WSB already has the City's record drawings. WSB would be hosting the GIS system on its servers. This would allow staff to do property identification (PID) searches and access record drawings when in the field and when in the office. It would also assist in record keeping. WSB has indicated that there would be a one -time charge of $5,960 to,gpi,all of the City's data into the system. Starting in 2015 there would be a monthly hosting fee of $3100 per month. Councilmember Hotvet asked if the hosting fee includes things such as software upgrades and training. Director Brown stated WSB does train staff and that the WS8 server' is a Nveb -based server. Mayor Zerby stated a GIS system is basically a map that it allows pet equate to putting electronic push pins on a map electronically, A p( virtual push pins to see the data behind them. Staff has kept "as bu lt" is built and the blue print for that. What the upgrade would allow- the the WSB server) thereby allowing broader access to the data. TI accessible from two personal computers (PCs), Data can be sent from giving Public Works personnel iPads they will be able to quicldy acce data as well. Inputting and updating data would be easy to do with the to put data on the map. It would a would be able to click on the information such as where a culvert .ity to put its data in "a cloud" (i.e., e. City's current GIS data is only the two PCs to other computers. By ,s data from the field and update the system proposed. Councilmember Siakel asked whco'has,access to that information now. Director Brown stated the intent is to allow staff access and the public access to certain information. For example, the City would not allow public access to certain information about its water system. But, it would allow public access to some skeleton drawings and other, information. Councilmember Hotvet stated that what is being proposed makes a lot of sense. She asked what the term of the contract with WSB would be. She then asked what happens to the City's information if the City and WSB were to part ways. Director Brown ,stated the City would still own its as -built information, the City has,that information in house. If the, City and WSB were to part ways the City would have to find a hosting service from another vendor. Hotvet asked how long the $300 monthly fee is good for. Is it month to month or is there a contract term? Brown clarified it is on a month to month basis. Hotvet moved, Zerby seconded, accepting the proposal for providing graphic information system (GIS) services from WSB & Associates for an implementation cost not to exceed $5,960 and for a monthly hosting fee of $300 which is subject to change. Councilmember Siakel asked that in a year a review be done of how this is working to determine if the City is getting the value from it that is anticipated. If the anticipated value is not achieved then consideration should be given to discontinuing it. Motion passed 4/0. C. Approve Change Order No. 1 — Valleywood Area Roadway Improvements, City Project 13 -01 CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 12 of 20 Engineer Hornby explained that during its September 9, 2013, meeting Council accepted bids and aNvarded the construction contract for street, drainage and utility improvements for Valley -wood Lane and Valley -wood Circle to Minger Construction, Inc. During the plan and contract review with Minger four items were identified as out -of -scope work based on the contract that Nvas bid. 1. Asphalt paving of the wearing course Nvas to occur in 2015 a. The alternate bid completion identified 2014 as placement contrary to City practice 2. Storm sewer modification from circular to arch -span for a roadway a. Pipe change to provide additional roadway cover above the pip 3. Removal of large trees near overhead utilities from the a. These trees would have significant root damage an b. Removal of dead trees in the right -of -way to preve 4. Addition of improved pipe foundation rock due Councilmember Hotvet briefly stepped out of the meeting at 8:15 P Hornby noted that staff is recommending approval of Change! $8,054.45. It Neill increase the cost of the project to $542,282. approximately 1.5 percent). Councilmember Siakel stated that generally durz personal to residents. She asked staff if that needs t clarified that the residents asked that the trees be rei Siakel moved, Woodruff seconded, Adopting RE Change Order No. I for Valleywood Area Impro 10. Discus )t survive!atter construction them post project after a storm soil conditions Number 1 in the amount of $534,228.35 (an increase of nature removing trees becomes to the residents. Engineer Hornby ON NO. 14 -042, "A Resolution Approving " Motion passed 310. Use of Plastic Bags in the City Administrator' Joynes stated Cauncilmember Hotvet had asked staff to begin looking into the possibility of prohibiting the use of plastic grocery bags within city limits. Councilmember Hotvet returned to the meeting at 8:16 P.M. Administrator Joynes stated staff has begun gathering information. After Councilmember Hotvet has had an opportunity to look at the information gathered it will be presented to Council for discussion. Joynes noted that earlier in the day Councilmember Hotvet asked staff to update the GreenStep Cities Program. Hotvet explained she wants Council and staff to have an opportunity to see if there are other initiatives that could be done for that Program. Councilmember Woodruff asked if the intent is to regulate point -of -sale bags. Or does it include produce bags? Mayor Zerby stated it is about the bags they put your groceries in at checkout. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 13 of 20 Woodruff noted that in Shorewood plastic bags can be included with other recycled materials provided they are all put in one plastic bag. B. Liquor Ordinance and Fee Schedule Amendment Administrator Joynes explained the meeting packet contains a copy of a draft amendment to City Code Chapter 401 Liquor Regulations relating to temporary liquor licenses. An amendment the Excelsior Firefighters Relief Association (EFRA) has asked for so it can sell intoxicating liquor at its fundraising dance on July 18. The current ordinance regulates 3.2 percent malt liquor sales and it has been in place for years. What is being considered this evening is to allow the sale of more intoxicating liquors. This is basically around the craft beer industn- and the change in how people are viewing special events like fundraising. Other communities have been changing their ordinances to allow the sale of intoxicating liquors on a temporary basis. The current fee for the license is $25 per' event. He suggested Council direct staff to research fee structures for other cities; not just the City of Excelsior; He recommended that for what is being considered this evening the $25 fee remain in place and to approve the change to Chapter 401 to allow the sale of intoxicating liquor on a temporary basis. He clarified this would only be allowed for clubs, charitable, religious or nonprofit organizations, Councilmember Siakel asked why the temporany license is for one to,four days. The EFRA's fundraising dance is just one day. Administrator Joynes responded sometimes organizations will have recurring events in one year and this ordinance would. allow them to do that; He clarified the license is not just for four consecutive days. Siakel asked if the City has charged the EFRA'a fee in the past. Joynes noted the City has waived the fee in the past. Mayor Zerby stated the EFRA is finding it more site of the dance. It is not a stock item. The EFI bring their product to events, Councilmember Hotvet stated there are a lot of police officers present. Hotvet and Councilmefnber Woodruff st permit. It dries not reference Si statutes that states "The licens consecutive day s ,'..'',. Woodru Without objection from the reference to Minn 4/0. to bring 3.2 percent malt liquor to the requests from local craft breweries to in place at the dance and there are ,ing ORDINANCE NO. 513, "An Ordinance Amending City Code Relating to Temporary Liquor Licenses." the amendment does not mention the one to four day duration for a Statute either. Administrator Joynes clarified there is a provision in the iay authorize the on -sale of intoxicating liquor for not more than four u2�ested that ordinance be referenced in the Ordinance. maker or the seconded, the ordinance was amended to include a ;e § 340A.404 relating to temporary on -sale licenses. Motion passed C. Excelsior Firefighters Relief Association Fundraising Event — July 18, 2014 Administrator Joynes stated the Excelsior Firefighters Relief Association (EFRA) has submitted an application for a temporany intoxicating liquor license for its fundraising event scheduled for July 18, 2014. Staff recommends that license be granted under the amendment to the City Code Council just approved. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 14 of 20 Woodruff moved, Hotvet seconded, Adopting RESOLUTION NO. 14 -043, "A Resolution Approving a Temporary `On -Sale' Liquor License to the Excelsior Firefighters Relief Association." Motion passed 4/0. D. Request to Place Dumpster at Christmas Lake Access Director Nielsen explained that Dave and Peggy Schultz, 5950 Ridge Road, lost their boathouse due to a fire last summer. The terrain on their property is extremely steep. In order to remove debris from the fire and as part of finishing up the project their contractor, M A Mortenson Company, has asked to put a dumpster at the Christmas Lake public access at Merry Lane for approximately six hours one day during the Nveek of June 9. The contractor Neill ferry the material over on a pontoon boat, offload the materials at the access and place it into the dumpster and then haul the dumpster away. The dumpster Nvould be located in a spot that does not interfere Nvith aquatic invasive species inspections. He noted staff recommends Council approve the request and noted that staff has found, the contractor to be very organized, cooperative and professional. Councilmember Hotvet asked if the contractor Neill secure the Nielsen stated typically a contractor Neill use a mesh nei t6 secur contractor to do that. Councilmember Woodruff stated he Nvas pleased to read that staf contractor is done to ensure it is left in the same condition as it Nvas Woodruff moved, Siakel seconded, authori Christmas Lake Access for a period of six passed 4/0. 11. OLD BUSIh A. Deer Director Nielsen explained the am deer Nv ithin the City limits; This informal resident survey via; the ( Management Program (DMP) sic conducted and it concluded the e: respondents favor, continuing th;e' l DMP for its next meetin4. 12. STAFF on the pontoon boat. Director s. Nielsen noted he Neill ask the inspect the access area after the the dumpster Nvas placed there. Company to place a dumpster t the y of the week June 9, 2014. Motion am 2014 — Results of Informal Resident Survey zl deer survey indicated there Nvas a relatively low number of Council agreed Nvith staff's recommendation to conduct an sletter and Nvebsite asking residents if they thought the Deer conducted, modified or suspended for 2014. A survey was ay. The results indicate that a strong majority of the survey He noted staff Nvill provide Council Nvith dates for the 2014 REPORTS A. Administrator and Staff Recap of the Spring Cleanup Event Mayor Zerby noted that the meeting packet contains a copy of a staff report recapping the City's spring cleanup event. Administrator Joynes stated staff believes the spring cleanup Nvas more successful than anticipated. Additional costs of approximately $953 Nvere incurred because more stuff Nvas brought to the site. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 15 of 20 Councilmember Woodruff noted that he had previously asked staff to provide Council with the labor costs. He then stated he thought the event was well organized. Mayor Zerby stated he has received positive feedback from residents about the event. Councilmember Sialcel stated she thinks the event is one of the best amenities the Citv offers. She noted that the staff did a phenomenal job. She stated that Clerk Panchyshyn and Recycling Coordinator Moore indicated the shredding company will be charging for the shredding service next Near. The service was well utilized by residents. Staff was going to provide information about the number of non - residents who took advantage of the shredding service. She would like to see that information. She stated the fee could maybe be $2.00 for non - residents and free for residents. She clarified non- residents were able to use only the shredding service. Councilmember Hotvet stated she was impressed by the variety, of _resources used for ,proper disposal. 2. Trail Schedule Mayor Zerby noted the meeting packet contains a copy of the schedules for the Galpin Lake Road Nvallcvyay and the Smithtown Road east Nvallcvyay (from the LRT Trail to Countn- Club Road). He stated the date for the 95 percent complete submittal to the Minnesota Department of Transportation (MnDOT) for the Galpin Lake Road project has been changed to June 13, 2014, from June 6. For the Smithtown Road project the authorization of the preparation ofthe survey and feasibility' report was going to be on this evening's agenda. It will be on the June 23 agenda instead. Those changes do not affect the remainder of the dates. In response to a question feasibility report will help'; In response to a question from C( Road project has to go through a f 7. That review can take longer th7 may be necessary to break the proj 2014 and the rest would be const would b6 xealigned — one at Highv at Mayflower Road to help with tr . trail may not usable until 2015. Engineer Hornby noted that the C segment of Nvallcway from the Cha iember Hotvet, Director Nielsen explained the outcome of the what side of Smithtown Road the walk av will be on. )er Woodruff," Engineer Hornby explained the Galpin Lake -vieN-, by MnDOT for the work being proposed on Highway state aid review. Depending on the time that review takes it two construction seasons. A portion would be constructed in 015. Staff is discussing phasing options. Two intersections t the trail would not go next to the lift station and the second ig and to avoid wetlands. It is possible that the full length of of Chanhassen has asked Shorewood to work with it to construct a ssen/Shorewood border to Pheasant Road. Councilmember Hotvet °asked when in the project timeline will grant opportunities be researched. Engineer Hornby stated for the Galpin Lake Road project staff is pursuing the possibility of state aid. He explained that at the time staff was looking at funding mechanisms for that project Chanhassen was not part of the project. In order to qualiA- for a connections grant from the Department of Natural Resources the walkway would have to be eight feet wide. Hotvet asked if staff is reaching out in other directions. Hornby stated if the City had a safe routes to school plan it would help with qualifying for very good federal funding. Director Nielsen stated the Planning Commission will begin working on that shortly as part of updating the Trail Implementation Plan. That plan would have to be submitted by this fall in order to apply for funding for the Smithtown Road project. Mayor Zerby asked if that plan can be done by the CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 16 of 20 fall. Zerbv stated that a Strawberry Lane sidewalk is on the radar and that would fit in with a safe routes to school plan. Hotvet stated it would be nice to know that staff is exploring all funding options; not just with the state. Nielsen noted the Smithtown Road east project is not on Hennepin County's trail plan. Hornby noted that WSB has funding experts that provide staff with a list of all the funding mechanisms available and when applications are due. Consideration has to be given to the additional cost for satisA-ing the requirements of certain grants. Other Director Brown explained he has sent Council a series of emails regarding water flowing over Enchanted Lane and Shady Island Road. Publics Works personnel have been Nvorkirig with staff from the City of Minnetrista, noting Engineer Hornby is also the City Engineer there. Mirnetrista intends to start building up the roadway on June 11 to provide safe access for residents: A tremendous number of permit requirements and coordination requirements that have to occur before the roadways can be filled in. Shorewood has taken some liberty with that and has filled some of the roadway and is applying for permits after the fact because of safety concerns. He stated in the not too distant future Council will be asked to take action on a number of drainage issues. He noted that many of the drainage, issues are connected with the level of Lake Minnetonka. Councilmember Woodruff thanked Director Brown and the Public 'Works staff for they did that day on Enchanted Lane in Shorewood. It has resolved the issue temporarily, He stated in Minnetrista there is 8 — 10 inches of water on the roadway and low riding vehicles can't be driving through there any longer. Engineer Hornby explained that up to a foot of rock will be put on top of the roadway in two locations in Minnetrista. It's anticipated that one section can be done each day, Most 'items had been permitted; there is one that will be permitted after the fact with that agency's permission. That Public Works staff has been diligently filling pot holes. Unfortunately, there are people driving four - wheelers who displacing sandbags from the potholes. He noted that roadway is falling apart. Mayor Zerby expressed his appreciation for the efforts of Director Brown and Engineer Hornby. He has been in contact with them quite' a few times over the last few days. He and Minnetrista Mayor Hunt are both trying to deal with the issue: He also appreciated the Minnehaha Creek Watershed District calling an emergency meeting to issue ,permits needed. He recommended assessing the needs of that roadway this Councilmember Woodruff stated. ,Enchanted Lane and Shady Island Road are not scheduled for major improvements ,until 2020. Those roadways may need to be built up before then. The spot just before the Shady Island Bride has been flooded for a number of Nears. Mayor Zerby stated the scheduling of those improvements is somewhat by design because a number of agencies will have to be involved. It is worth planting the seed at this time. Engineer Hornby stated from an engineering perspective he has also received a number of phone calls about drainage issues. He reiterated there is the catch 22 issue in the Smithtown Road Nvest sidewalk area. It is too Nvet for the contractor to come in and do the grading work. The contractor has performed some work on some of the drains to provide some relief. Dealing with drainage issues has been taking up quite a bit of staff time. As a result other things are not getting done as soon as planned. He noted he still has a number of phone calls to return but he will return them. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 17 of 20 Mayor Zerby stated he is amazed by the number of residents that think this is a typical spring regarding rain and flooding. They don't seem to know that the level of Lake Minnetonka is at a historic high. Director Nielsen noted that the Park Commission had its second of two park tours on June 5. He then noted there is a Music in the Park concert scheduled for June 13 from 6:00 — 8:00 P.M. in Badger Park. Administrator Joynes noted that he, Attorney Keane and Director Nielsen have been in discussions about the Heartbreaker property. B. Mayor and City Council Councilmember Woodruff stated a few weeks ago he and a few resident living along side of WedgeNvood Drive regarding speedin a response from staff. Director Brown noted that WSB & Associa out to gather information about the speeds. Staff will let them knc a non -speed issue as well. Brown noted staff will respond to the rc Councilmember Woodruff stated as the alternate to the Excelsior Fire I Board meeting on May 28 in Boardmember Siakel's absence. The rnaj budget. The Board made a decision to use some of the excess'Operatr building maintenance and repair items in 2014 (e.g., ice jam issues and from the 2015 Operating Budget. There Nvas'also discussion about, thk budget. EFD Chief Gerber was asked to tweak the budget and come b more than a 2 percent increase in the municipal contribution if possible. 2015 budget was the replacement of televisions in Stati $500 towards that expense; a total of $1500 is needed, the American Legion. -ogle received an email from a LA if that resident has received )een asked to put the road tubes that. Woodruff stated there was (EFD) Board he attended a ussion was about the 2015 sg Fund reserves to pay for some caulking issues) and remove them proposed overall increase to the ack with a budget that reflects no One of the things proposed in the -ican Legion has agreed to donate e Shorewood Council he thanked Councilmember Siakel thanked Councilmember Woodruff for attending that meeting and noted that she was out of town that day. She noted that she watched the entire meeting online on the LMCC's Nvebsite. She explained the EFD has a Fund Balance Policy that stipulates the Operating Fund reserves should be 20 — 30 percent of the upcoming,year's operating expenses. There is about $72,000 in excess reserves. She was disappointed that the Board did not have a more robust discussion about how to use some of that excess. She noted she had brought that to,Council's attention during its May 12, 2014, meeting. She noted that she had previously expressed she supported using some of that excess to fund some of the building maintenance and repair projects. She stated what the Board did not discuss is using some of the excess reserves to increase the balance in the Fire Relief Fund. She asked Council to express support for doing that. The funds 'in Fire Relief Fund would be used to help offset a mandatory contribution to the Excelsior Firefighters Relief Association (EFRA) fund for pensions when the pension fund becomes less than 100 percent funded because of a significant downturn in the market. She also asked Council to support a policy to take some of any year's budget surplus and transfer it to the Fire Relief Fund until the Fund reached a certain to -be- determined balance. She stated she does not understand the desire to keep the mandatory contribution to less than or equal to 2 percent. Doing that does not take into account what is needed to operate the District. She does not buy into the 2 percent ceiling. There was a lot of discussion about the proposed overall budget increase of approximately 6.2 percent. Once the $25,000 for the building maintenance projects is removed the overall increase would be reduced to 3.3 — 3.4 percent. That increase is not grossly out of line. She commented that some of the previous Fire Boards have kicked the budgetary can down the road. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 18 of 20 She asked Council to give some consideration to the firefighter paid -on -call (POC) hourly rate. She explained that if the rate were $10.40 and if there were a maximum 2 percent increase the rate would go to $10.60. Chief Gerber has recommended increasing the rate from $10.60 to $12.00. Doing that results in an approximate $13,000 impact on the budget. That increase will not overwhelm any EFD member city's budget. There were some Boardmembers that wanted to phase that increase in over two years. Doing that repeatedly has gotten things to the point where the EFD's POC rate is not as competitive as it should be. The EFD's rate never catches up to the average. There had been market analysis done of the POC hourly rate. The 2014 survey results using 2014 data indicates the average rate is $14.98. The $12.00 would still be substantially less than average. The survey results done in 2013 showed, an average rate less than $14.98. She noted that the results of the survey depend on which agencies participate. She also noted that she does not think $12.00 is out of line. She again asked Council for feedback. Mayor Zerby recessed the meeting at 8:59 P.M. Mayor Zerby reconvened the meeting at 9:03 P.M. Councilmember Woodruff noted that he appreciates Councilmembel four EFD member cities that were represented at the meeting; there N was more than they wanted to pay. One of the members of the Boar thought that compromise was $11.20 or $11.40 with the understanc rate would be done again in 2015. One of the Boardmembers menti 2013 indicated a much lower average rate. He suggested putting meeting agenda to talk about the point Councilmember Siakel has bi vote on it. Council's representative to the meeting would then alai from his perspective one member of Council is dictating what may he has a problem with that. 1 11 s tated of the that $12.00 recommended a compromise and he ng that a survey of the POC hourly ,tied that the results of the survey in the, EFD ° Budget topic on a future ,ught up and then Council can take a e by how Council voted. He stated ,e taken back to the EFD Board and Councilmember Sialcel noted that she does not think she is dictating anything. She stated that in the past Councilmember Woodruff has criticized her about voting. This evening she is asking for feedback. She then stated she has voted and acted based on what the majority of Council had supported. Councilmember Woodruff stated Council has never had a meeting where it took at vote. There has never been a suaQestion other than a discussion. Mayor Zerby,noted that Council has not voted for other committees. It does not do it for the Lake Minnetonka Conservation District (LMCD) or the Lake Minnetonka Communications Commission (LMCC). Councilmember Woodruff stated the LMCD sets its own budget. Zerby stated Council does weigh in when it comes to budgets. It votes on the EFD budget. Councilmember Sialcel stated Excelsior was not represented at the May 28 meeting. Acting Chair Fletcher from Greenwood indicated he could possibly be convinced to go to $12.00 and then he recanted. Then are EFD member cities who want to support things at the lowest level. She questions if the conversation was fully represented by all cities. She commented that she is presenting what she heard on the recording of the meeting. The $12.00 rate is substantially less than the survey average rate. She noted she thinks the $12.00 rate would be closer to competitive. She asked the members of Council if they thought $12.00 is fair or does it want to see a phased in increase. Councilmember Hotvet noted that she works closely with the Fire Department on a variety of levels. She knows how devoted members of the Department are and how hard they work. She does not want to pay CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 19 of 20 them less than other departments pay* for comparable positions. She stated that Councilmember Siakel is Council's representative on the EFD Board and she puts faith in the representatives to all committees to make the best choices and set the best directions for Shorewood. Councilmember Sialcel stated she Nvould like Council feedback on the POC call rate, about transferring some of the excess Operating Fund reserves to the Fire Relief Fund, and about establishing a policy* to transfer some of any operating budget surplus to the Fund until the balance reaches a threshold. She then stated that she had spoken Nvith Director DeJong on how that could be done. She thought it Nvould be possible and very* reasonable and that it Nvarrants Council discussion. Councilmember Woodruff reiterated that he Nvants the EFD Budget; on an upcoming agenda for discussion. He Nvants Council to make a formal decision on what it giants to happen. Councilmember Sialcel suggested discussing it in a Nvork session and inviting Chief Gerber topgrticipate in the discussion. Woodruff stated Council does not vote in a Nvork session; therefore, he Nvants' it discussed in a regular meeting. Sialcel asked Woodruff if he Nvanted to vote so he" could, be on record that he agrees Nvith Greenwood and Tonlca Bay. Woodruff stated that he Nvants some substance to shod that Council agrees Nvith what it Nvants to happen because there is no agreement now. Councilmember Hotvet asked Attorney* Keane to comment. Keane stated when a council takes up business for discussion and action (whether it be a motion, 'resolution or ordinance) that business is properly* placed on an agenda that is publicly noticed. There is an tipportunityT for full consideration prior to Council's consideration of the item. The City's position as it relates to a rate change, if indeed it is a formal position that is articulated by motion of this Council, should be a prior agenda item that is noticed. Mavor Zerbv noted that he supports increasing the POC hourly rate to $12.00. He stated from his perspective when a council appoints a board member to represent a, council then that is a vote by council in support of that member acting gh behalf of council in matters that do not require a vote. He stated the EFD budget is considered by Council as a whole and Council has an opportunity to discuss the budget and either approve or' deny* it. He noted that he believes that the majority* of Council supports Councilmember Sialcel's actions and opinions on the EFD' Board. He stated he does not think Council needs to micromanage its representatives on a vote by vote basis. He then stated there seems to be differences of opinion about the EFD budget and. that Nvarrants discussion; but, not at the end of a long meeting. This is a complex, issue that Council needs to have a good understanding of. Councilmember Sialcel stated that Nvith the exception of Councilmember Woodruff she does not hear Councilmembers saying they do ' not support the $12.00 or telling her to act differently. She thought that she acted on what the maj ority of Council supported. Councilmember Woodruff stated that in the May 28 meeting the discussion about the POC hourly rate Nvas brought up by another EFD Boardmember. And, most of the discussion Nvas carried on by people other than him. There Nvas consensus to direct Chief Gerber to set the rate at $11.20 or $11.40. It is not him by himself saying what the rate is going to be. There Nvere Boardmembers who could have overruled him. There Nvere other Boardmembers who Nvere not happy Nvith the $12.00 proposal. What he said really did not make any difference. If Councilmember Sialcel Nvants to try* and change the Boardmembers positions and if Council Nvants her to do that it is fine Nvith him. Councilmember Sialcel reiterated the Excelsior representative Nvas not at the meeting. Woodruff stated if the Excelsior representative had been there he Nvould have been outvoted 3/1. Sialcel disagreed. Woodruff stated then Councilmember Sialcel's influence is greatly needed on the EFD Board and her absence at the meeting Nvas unfortunate. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 9, 2014 Page 20 of 20 Councilmember Hotvet extended an invitation to the general public to come to Art on the Lake which is scheduled for June 14 and 15 in the Excelsior Commons. It is from 10 A.M. — 6:00 P.M. on June 14 and from10:00 A.M. — 4:00 P.M. on June 15. There Nvill be free bands, great artisans, great food artisans and a children's tent. It is free and open to the public. 13. ADJOURN Woodruff moved, Zerby seconded, Adjourning the City Council Regular Meeting of June 9, 2014, at 9:14 P.M. Motion passed 4/0. RES Chr AT] Jear a City of Shorewood Council Meeting Item Title/ Subject: Verified Claims Meeting Date: June 23, 2014 Prepared by: Michelle Nguyen, Senior Accountant Bruce DeJong, Finance Director Attachments: Claims lists Policy Consideration: Should the attached claims against the City of Shorewood be paid? Background: Claims for council authorization. 60428 -60429 & ACH 23,614.18 Pending Checks & ACH 452,679.68 Total Claims $476,293.86 We have also included a payroll summary for the payroll period ending June 14, 2014. Financial or Budget Considerations: #3A MEETING TYPE Regular Meeting These expenditures are reasonable and necessary to provide services to our residents and funds are budgeted and available for these purposes. Options: The City Council is may accept the staff recommendation to pay these claims or may reject any expenditure it deems not in the best interest of the city. Recommendation / Action Requested: Staff recommends approval of the claims list as presented. Next Steps and Timelines: Checks will be distributed following approval. Accounts Payable Check Detail User: tnnguyen Printed: 06/19/2014 - 12 14P Check Number Check Date 5 - EFTPS - FEDERAL W/H 0 06/16/2014 PR Batch 00002.06.2014 Federal Incon Inv PR Batch 00002 06.2014 Medicare Employer Portion PR Batch 00002.06 2014 Medicare Employer 0 Total: 2 - ICMA RETIREMENT TRUST- 302131 -457 60469 06/16/2014 PR Batch 00002.062014 Deferred Con Inv PR Batch 00002 06.2014 Deferred Comp Flat Amount PR Batch 0000106.2014 Deferred Comp Fla 60469 Total: 2 - ICMA RETIREMENT'I'RUS7'- 3 02 13 1 -4 5 7 Total 11- MN DEPT OF REVENUE 0 06/16/2014 PR Batch 00002.06.2014 State Income Inv PR Batch 00002.06.2014 State Income Tax PR Batch 00002.06:2014 State Income Tax 0 Total: 11 - MN DEPT OF REVENUE Total 9 -PERA 0 06/16/2014 PR Batch 00002.06.2014 MN -PERA D Inv PR Batch 00002.06.2014 MN PERA Benefit Employer PR Batch 00002.06.2014 MN PERA Benefit E 0 Total: 9 - PERA Total 1- WELLS FARGO HEALTH BENEFIT SVCS 0 06/16/2014 PR Batch 00002.06.2014 Health Savint Inv PR Batch 00002.06.2014 Health Savings Account PR Batch 00002.06.2014 HealthSavings Ac 0 Total I - WELLS FARGO HEALTH BENEFIT SVCS Total: Amount 12,097.33 12,097.33 12,097.33 1,625.00 1,625.00 1,625.00 2,003.57 2,003.57 2,003.57 6,600.23 6,600.23 6,600.23 1,288.05 1,288.05 1,288.05 AP -Cheek Detail (6/19/2014 - 12:14 PM) Page I Check Number Check Date Total Amount 23,614.18 AP -Check Detail (6/19/2014 - 12:14 PM) page 2 Account Number Debit Amount Credit Amount Description FUND 101 General Fund 101 -00- 1010 - 0000 0.00 46.113.63 CASH AND INVESTMENTS 101 -11- 4103 -0000 1,300.00 0,00 PART =TIME. 101 -11- 4122 -0000 99.47 0.00 FICA CONTRIB - CITY SHARE 101 - 134101 -0000 7,746.76 0,00 FULL -TIME REGULAR 101 -13- 4121 -0000 491.28 0,00 PERA CONTRIB - CITYSHARE 101 -13- 4122 -0000 517.94 0.00 FICA CONTRIB - CITYSHARE 101 -13- 41510000 24.29 0.00 WORKERS COMPENSATION 101 -15- 4101 -0000 4,646.68 0.00 FULL -TIME REGULAR 101 -15 -4121 -0000 30624 0.00 PERA CONTRIB - CITYSHARE 101 -15- 4122 -0000 313.34 0.00 FICA CONTRIB - CITY SHARE 101 -15 -4151 -0000 17.34 0.00 WORKERS COMPENSATION 101 -18- 4101- 0000 6,186.98 0,00 FULL -TIME REGULAR 101 -18- 4121 -0000 356.74 0.00 PERA CONTRIB - CITY SHARE 101 -18 -4122 -0000 366.49 0.00 FICA CONTRIB - CITYSHARE^ 101 -18 -4151 -0000 23.65 0.00 WORKERS COMPENSATION 101 -24 -4101 -0000 4.095.13 0.00 PULL -TIME REGULAR 101 -24- 4121 -0000 264.27 0.00 PERA CONTRIB - CITY SHARE 101 -24- 4122 - 0000 240.02 0.00 FICA CONTRIB - CITY SHARE 101 -24- 4151 - 0000 22.45 0.00 WORKERS COMPENSATION 101 -32- 4101 -0000 8,787.61 0.00 FULL -TIME REGULAR 101 -32 -4102 -0000 720.74 0.00 OVERTIME 101 -32 -4105 -0000 232.70 0.00 STREET PAGER PAY 101 -32- 4121 -0000 597.88 0.00 PERA CONTRIB - CITYSHARE 101 -32 -4122 -0000 602.67 0.00 FICA CONTRIB - CITY SHARE 101 -32- 4151 -0000 459.55 0.00 WORKERS COMPENSATION 101 -52- 4101 -0000 4,092.05 0.00 FULL-TIME REGULAR 101 -52- 4102 -0000 186.98 0.00 OVERTIME 101 -52 -4103- 0000 810.00 0.00 PART -TIME 101 -52- 4121 -0000 258.28 0.00 PERA CONTRIB - CITY SHARE 101 -52- 4122 -0000 334.49 0.00 FICA CONTRIB - CITY SHARE 101 -52 -4151 -0000 170.78 0.00 WORKERS COMPENSATION 101 -53 -4101 -0000 732.33 0.00 FULL -TIME REGULAR 101 -53 -4103 -0000 900.00 0.00 PART -TIME 101 -53- 4121 -0000 51.81 0.00 PERA CONTRIB - CITY SHARE PR- G/L Distribution Report (06/16!2014 -12:20 PM) Page 1 Account Number Debit Amount Credit Amount Description 101 -53- 4122 -0000 123.89 0.00 FICA CONTRIB - CITY SHARE 101 -53 -4151 -0000 2 .80 0.00 WORKERS COMPENSATION FUND Total: 46,11163 46,113.63 FUND 201 Southshorc Center 201 -00- 1010 -0000 0.00 1,606.2 CASH AND INVESTMENTS 201 -00- 4101 -0000 900.90 0.00 FULL -TIME REGULAR 201 -00- 4102 -0000 174.04 0.00 OVERTIME 201 -00 -4103 -0000 342.25 0.00 PART -TIME 201 -00 -4121 -0000 77.94 0.00 PERA CONTRIB - CITY SHARE 201 -00- 4122 -0000 107.01 0.00 FICA CONTRLB - CITYSHARE 201 -00- 4151 -0000 4.09 0.00 WORKERS COMPENSATION FUNDTotal: 1,606.23 1,606.23 FUND 601 Water Utility 601 -00- 1010 -0000 0.00 7,140.57 CASH AND INVESTMENTS 601 -00- 4101 -0000 5,588.66 0,00 FULL -TIME REGULAR 601 -00 -4102 -0000 213.00 0,00 OVERTIME 601 -00 -4103 -0000 92.40 0.00 PART-TIME - 601 -00 -4105 -0000 284.00 0,00 WATER PAGER PAY 601 -00 -4121 -0000 39191 0.00 PERA CONTRIB - CITY SHARE 601 -00 - 4122 -0000 402.28 0.00 FICA CONTRIB - CITY SHARE 601 -00- 4151 -0000 168.32 0.00 WORKERS COMPENSATION FUND Total: 7,140.57 7,140.57 FUND 611 Sanitary Sewer Utility 611-00 - 1010 -0000 0.00 4,835,52 CASH AND INVESTMENTS 611 -00- 4101 -0000 3,551-72 0.00 FULL -TIME REGULAR 611 -00 -4102 -0000 85.20 0.00 OVERTIME 611 -004105 -0000 568.00 0.00 SEWER PAGER PAY 611 -00- 4121 -0000 248.88 0.00 PERA CONTRIB - CITY SHARE 611 -00 -4122 -0000 273.03 0.00 FICA CONTRIB - CITYSHARE 611 -00- 4151 -0000 108.69 0.00 WORKERS COMPENSATION FUND Total: 4,835.52 4,835.52 FUND 621 Recycling Utility 621 -00 -1010 -0000 0.00 498.29 CASH AND INVESTMENTS 621 -00- 4101 -0000 440.36 0.00 FULL -TIME REGULAR 621 -00 -4121- 0000 28.96 0.00 PERA CONTRIB - CITYSHARE 621 -00 -4122 -0000 28.97 0.00 FICA CONTRIB - CITY SHARE PR - G/L Distribution Report (06/16/2014 - 12:20 PM) Page 2 Account Number Debit Amount Credit Amount Description FUND Total: 498.29 49829 FUND 631 Storm Water Utility 631 -00 -1010 -0000 0.00 7,188.01 CASH AND INVESTMENTS 631 -00 -4101 -0000 5,421.57 0.00 FULL TIME REGULAR 631 -00- 4102 -0000 731.40 0.00 OVERTIME 631 -00 -4121 -0000 44038 0.00 PERA CONTRIB CITY SHARE 631 -00 -4122 -0000 401.11 0.00 FICA CONTRIB - CITYSHARE 631 -00- 4151 -0000 193.55 0.00 WORKERS COMPENSATION FUND Total: 7,188.01 7,188.01 FUND 700 Payroll Clearing Fund 700 -00 - 1010 -0000 67,209.33 0.00 CASH AND INVESTMENTS 700 -00- 2170 -0000 0.00 34,669.10 GROSS PAYROLL CLEARING 700 -00-2171 -0000 0.00 6,651.65 HEALTH INSURANCE PAYABLE 700 -00- 2172 -0000 0.00 4,47591 FEDERAL WITHHOLDING PAYABLE 700 -00- 2173 -0000 0 -00 2,003.57 STATE WITHHOLDING PAYABLE 700 -00- 2174-0000 0.00 7,621.42 PICA /MEDICARE TAX PAYABLE 700 -00- 2175 -0000 0.00 6,600.23 PERA WITHHOLDING PAYABLE 700 -00- 2176 -0000 0.00 1,65.00 DEFERRED COMPENSATION 700 -00- 2177 -0000 0.00 1,195.51 WORKERS COMPENSATION 700 -00- 2179 -0000 0 -00 192.00 SEC 125 DEP CARE REIMB PAYABLE 700 -00 -2183 -0000 0.00 1,288.05 HEALTH SAVINGS ACCOUNT 700-00 -2184 - 0000 0.00 478.89 DENTAL DELTA 700 -00 -2185 -0000 0.00 408.00 DENTAL - UNION FUND Total: 67,209.33 67,209.33 Report Total: 134,591.58 134,591.58 PR - G/L Distribution Report (06/16/2014 - 12:20 PM) Page 3 Accounts Payable Computer Check Proof List by Vendor User: nmwyen City of Printed: 06/192014 - 1210PM Shorewood Batch: 00004.06 2014 - COUNCIL- 06232014 Invoice No Description Amount Payment Date Acct Number Fund Dept Vendo, . 105 ADVANCED IMAGING SOLUTIONS Check Sequence: I INV50183 Konica Minolta Printer -05/15 -06/14 72.00 06123/2014 101 - 19-4321 -0000 General MunBldg Check TotaL 72.00 Vendor 4 AFSCMEC05 MEMBERHEAUTH FUND Check Segnenee.2 hdy -2014 PR Bmeh 00002.062014 Dental - Union 408.00 06/16/2014700 -00- 21850000 Payroll Non -Dept Cheek Total 408.00 Vendor: 12 AFSCME COUNCIL. 5 -UNION Check Segnence.3 PR Batch 00001.06.2014 Grdon Dne. 312.32 06/03/2014700 -00- 2182 -0000 Payroll Nov -Dept Check Total: 312.32 Vendor: 492 ASSOCIA'T'ION OF RECYCLING MANAGERS, IS Check Sequence; 4 2014 -Dne JoheM ... o- 2014Membership 35,00 06/23/2014621 -00 -4331 -0000 Recycling Nov -Dept Check'l'otal. 35.00 Vendor: 123 BLUE -TARP FINANCIAL INC Check Sequ,no:5 4063005526 Friel Snap, 8578 06/23/2014101 -32 -4245 -0000 General Pub Work, Check Total: 85.78 Vendor. 134 CARQUEST AUTO PARTS Cheok Segnetro6 6974-227579 Radiator Ho.e 16.50 06/23/2014101 -32 -4221 -0000 General Eno Work, Cheek Trial 16.50 Vendor 136 CENPERPOINr ENERGY Cheek Sequence :7 05302014 20405 Knighabridge Rd- 04/22 -05/21 50.63 06/23/2014601 -00 -0394 -0000 Water Nao-Dept 05302014 28125 rOulder Bridge- 04/22 -0521 11642 06/23/2014601 -00 - 4396 -0000 Water Non -Dept 05302014 24200 Smithtown Rd- 04/22 -05/21 238.40 06/23/2014101 -32- 4380 -0000 General Pub Work, 05302014 5745 Ctry Club &2520014wy 7- 0422 -05 /21 125.19 06/23/2014101- 524380 -0000 General Park Meer 05302014 5755 Country Club Rd- 04/22 -05/21 10420 06/23/2014101 -19 -4380 -0000 General Mun Bldg Check Total: 634.84 Vendor: 137 CENTURY LINK Check Sequence: & 611E451785 -JN14 612 -E45- 1785- BldrBrdg 315.39 06/23/2014 601 -00- 4396 -0000 Water N.r -Dept 612E[58019 -INN 612 -E45- 8019- SEAr... 336.43 06/23/2014 601 -00 -4398 -0000 Water Non -Dept Check Total: 651,82 Vendor 147 CITY OF MOUND Check Sequeoce:9 3rdQn -2014 2014 -Fire Payn ... t- 3rdQt, 5,893.25 06/23/2014101- 224400-0000 General Fire Check Total: 5893,25 Vendor: 150 CLASSIC CLEANING COMPANY Check Sequence: 10 20813 City 11.11 -.tun 495.00 06/23/2014 101 -19 44000000 Geneva] Mnn Bldg 20814 Public Wodca -Jun 295.00 06/23/2014 101 -32- 4400 -0000 Geocral Pnb Works Cheek Total: 790.00 Vendor 159 CULLIGAN BOTTLED WATER Cheek Segtwnce: I May -2014 Drinking Water - May 87.17 06/23/2014101 -19 -4245 -0000 General MunBldg Check Total: 87.17 Vendor 163 DELEGARD TOOL COMPANY Check Sequence: 12 909755 Ulnaaonic Leak Detector 184.38 06/23/2014101- 3242400000 General PubWorke 909755 Ultotennic Leak Detector, 184.37 06/23/2014601 -00- 4240 -0000 Water Non -Dept 90979 Jnmp Starter Paek 106.28 06/23/2014101 -32- 4240 -0000 General Pub Works Check Total: 475.03 Vendor 167 ECM PUBLISHERS INC Check Segnence: 13 111126 2013 Drinking Water Report 542.64 06/23/2014601 -00- 4351 -0000 Water Non -Dept 111127 New Ballot Tabulator 37.24 06/23/2014101 -13- 4351 -0000 General Adanin 111348 New Voting Fgniporent 26.99 06/232014 101 -13- 4351 -0000 General Admin Accounts Payable Computer Check Proof List by Vendor User imrguyea City of Printed. 06/19/2014 - 12: 10PM .Shorewood Batch: 00004 062014 - COUNCIL - 06232014 Invoice No Description Amount Payment Date Acct Number Fund Dept Check Total 606.87 Vendor : 487 EGAN Check Sequence: 14 .1010100899 Relamp Signal 180.00 06/23/201410432 -4400 -0000 General PubWorks Check Total 180.00 Vender, 219 ELINPIEPER Check Sequence, 15 06/09/2014 Tablecloths Svc 06/09/14 44,00 06/23/2014 201 -00-4400 -0000 SSC Nov -Dept Check "Cola]: 44,00 Vendor. 179 EXCELSIOR FIRE DISTRICT Check Sequence: 16 3rdQn -2014 Building- 3rd Qt, 69,60566 06/23/2014101 -22- 4620 -0000 General Fire 3rd Qtr-2014 Operations -3rd Qtr 81,303 90 06/23 /2014 101 - 22-4400 -0000 General Fire Check Trani 150,909.56 Vendor 186 FERGUSON WATERWORKS No2516 Check Segneuee: 17 0085031 Water Meter Parts 9328 06 /23/2014 601 -00 -4265 -0000 Water Non -Dept Check Total: 9328 Vendor 188 FLEET PRIDE TRUCK & TRAILER PARTS Cheek Sequence: 18 59246407 Brake Pairs 141.50 06/23/20]4101 -32 -4221 -0000 General Pop Warty Check Total 141 50 Vendor 491 JOHN GROTH Check Sequence: 19 0308320502 27585 Brytnnmvr Place-0verpaid Refund 59,35 06/23/2014 611 -00 - 37100000 Sewer Non -Dept Check'Cota]: 5935 Vendor 211 HAWKINS INC Cheek Sequence: 20 3603630RI clucacal -Water Supply 3,576.91 06/23/2014601 -00 - 4245 -0000 Water Non-Dept Check Total: 3,576.91 Vendor 6 HEALTH PARTNERS Check Sequence: 21 July -2014 PR Batch 00001,062014 Health Ins - CoPay 1,86660 06/03/2014700 -00 -2171 -0000 Payroll Non -Dept July -2014 PRBatch00001D62014 Health hourance -NSA 4,529.45 06/03/2014700 -00 -2171 -0000 Payroll Non -Dept July -2014 PR Batch 00002.062014 Health his - CoPay 201190 06/16/201470000 -2171 -0000 Payroll No.-Dept July -2014 PR Batch 00002,06.2014 Health Insurance -RSA 4,639.75 06/162014 700 -00- 2171 -0000 Payroll Non-Dept Check Total: 13,047,70 Vendor: 215 HENN CO INFO TECHNOLOGY DEPT Check Sequeno: 22 1000046368 800 Mh, Radio - May 111.30 06/23 /2014101 -32- 4321 -0000 General Pub Works Check Total: 111,30 Vendor 488 HIGHLAND PRODUCTS GROUP LLC Check Sequence: 23 SO412673 Plastic Malibu Bench 594.90 06123 /2014 402 -00.46600000 Park Cap Non -Dept Check Torah 59490 Vendor 227 INTELLIGENT PRODUCTS INC Check Sequence: 24 178577A Mutt Mitts 456,84 06/23/2014101 -52 -0245 -0000 General Park Main Check Total: 45684 Accounts Payable Computer Check Proof List by Vendor 480.60 U., magayen 455 KDV, LTD City of P,ated: 06/19/2014 - 121OPM 199968 Shorewood Batch: 00004.06 2014 - COUNCIL-06232014 1,050.00 Invoice No Description Amount Payment Date Acet Number Vendor 490 INVISIBLE FENCE CO. OF MINNESOTA Veudov Check Sequence: 25 175872 Carol Hayes -5830 Strawberry Lane - Project 13 -01 218.70 06/2312014 406 - 00-4620 -0001 176149 Jcny & Kerry Juhl -5490 Vslk ced Cir-Projeet 13 261.90 06/23/2014 404 -00 - 4620-0003 Check Segoeuce: 26 06/23/2014 101 -15- 4301 -0000 Check Sequence: 27 06/23/2014 101- 16-4304-0000 06/23/2014 101-16 -4304 -0000 Check Sequence: 28 06/23/2014 101 -11- 4433-0000 Check Sequence: 29 06/2.33/2014 101-52.4400 -0000 Cheek Sequence: 30 06/23/2014 101 -52- 4215 -0000 Chock Sequence. 31 0623/2014 101 - 534247 -0000 Check Sequence: 32 06/23/2014 611 -00 -4385 -0000 Check Sequence: 33 06/032014 700-00- 2180 -0000 Check Sequence: 34 06/23/2014 601 -0042 ?1 -0000 Check Sequence: 35 06/23/2014 101-53-4248-0000 Check Sequence: 36 06/03/2014 700 -00- 2180 -0000 Check Segnenoa. 37 06/23/2014 101 -32 -4221 -0000 Fund Dept Trail Non -Dept Streit Cap Non -Dept General Fin Geoc,s] ProfSves General Prof Svcs General Council General Park Mona General Park Maint General Recreation Sewer Non -Dept Payroll Non -Dept Water Nan -Dept General Recreation Payroll Non -Dept General Pub Works Check Total. 480.60 Vendor 455 KDV, LTD 199968 May - Consriltiag Services 1,050.00 Check Total: 1,050.00 Veudov 482 KUTAK ROCK LLP 1958163 General Corporate - Mar 1,850,00 1961750 General Corporate - Artil 1,850.00 Check Total: 3,700,00 Vendor -. 251 LAKE M1NNE'IONKA CONSERVATION DISTRI Ind Qtr-2014 Levy Pa recut -2nd out 8,280.50 Check Total: 8,280.50 Veadov 259 CLARE T LINK 2014 -01 Park Cmnmisslon Meeting -06/10 187.00 Check Total 187.00 Vendaq 264 EVA ASSOCIATES INC 7184 Garbage Bags 46108 Chock Total: 463,08 Vendor 208 MENARDS 59134 Plywood - Music in the Park 63.75 Chock Total: 63.75 Vendor; 279 METROPOLITAN COUNCIL (WASTBWAXER) 0001035212 Waste Water Svc - .July 45,684.54 CheckTOl 45,684.54 Vardar 7 MINNESO'T'A LIFE. July -2014 PR Batch 00001.06 2014 Lit, Insoono c 390.73 Check Total 39073 Vc,cha 456 MINNESOTA PIPE &EQUIP 0315433 Gate Valve Carting 687.88 Check Total 687.88 Vendor: 291 MINNESOTA ZOOMOBILE 5460 Program at Freeman Park- 07/18/14 325.00 Check Total: 325.00 Vendor- 10 NCPERS MINNESOTA PR Batch 0000 1 .06.2014 PERA LiD 16.00 Check Total: 16.00 Vendor 489 NORTHERN POWER PRODUCTS, INC. 243891 Grrnnmet 97.20 ('heck Total: 97.20 Check Segoeuce: 26 06/23/2014 101 -15- 4301 -0000 Check Sequence: 27 06/23/2014 101- 16-4304-0000 06/23/2014 101-16 -4304 -0000 Check Sequence: 28 06/23/2014 101 -11- 4433-0000 Check Sequence: 29 06/2.33/2014 101-52.4400 -0000 Cheek Sequence: 30 06/23/2014 101 -52- 4215 -0000 Chock Sequence. 31 0623/2014 101 - 534247 -0000 Check Sequence: 32 06/23/2014 611 -00 -4385 -0000 Check Sequence: 33 06/032014 700-00- 2180 -0000 Check Sequence: 34 06/23/2014 601 -0042 ?1 -0000 Check Sequence: 35 06/23/2014 101-53-4248-0000 Check Sequence: 36 06/03/2014 700 -00- 2180 -0000 Check Segnenoa. 37 06/23/2014 101 -32 -4221 -0000 Fund Dept Trail Non -Dept Streit Cap Non -Dept General Fin Geoc,s] ProfSves General Prof Svcs General Council General Park Mona General Park Maint General Recreation Sewer Non -Dept Payroll Non -Dept Water Nan -Dept General Recreation Payroll Non -Dept General Pub Works Accounts Payable Computer Check Proof List by Vendor User nor"rycn City of Printed: 06/19/2014 - 12:1 OPM Shorewood Batch: 00004 06.2014 - COUNCIL- 06232014 Invoicesso Description Amount Payment Date Acet Number Fund Dept Vendor: 320 NORTHLAND SECURITIES INC Check Sequence: 38 SHOREI3A- 070114 General Obligation Water- Seriee 20I3A 9,60625 06/23/2014601 - 00-4711-0000 Water Non -Dept Check Total: 9,60625 Vendor. 322 OFFICE DEPOT Check Segnence: 39 715413053001 General Surptics- Copier Barer 207.64 06232014 101 -13- 4200-0000 General Admin 715413053001 General Supplies-Battery 18,38 06/23/2014 201 -00 - 4245 -0000 SSC Non -Dept 716019883001 Goner el Snpphes 52.65 06/23/2014 101 -13- 4200 -0000 General Adman 716838791001 Cartridge 184,02 06123/2014 101 -13- 4200 -0000 General Admin Check Total: 462 69 Vendor 333 PITNEY BOWES GLOBAL FIN SVCS Cheek Segnenoe: 40 54409544N14 Qnarterly Meter Lease Risings 243.94 06/23/2014 101 -19- 4410 -0000 General MunBldg Check'Unid 243.94 Vendor: 452 PRE,HALL ELECTRIC INC. Check Sequenc, 41 272 Replace Balksts&. Lamps 500.00 06/23/2014101 -19 -4223 -0000 General MunBldg Check Total: 500,00 Vendor: 8 PRUDENTIAL GROUP INSURANCE Gxaek Sequence: 42 July-2014 PR Batch 00001.06.2014 Long Term Meabilay 296.62 06/03/2014700 -00 -2181 -0000 Payroll Non -Dept July -2014 PR Book 0000 L 06,2014 Shari Term Disability 458.21 06/032014700 -00- 2181 -0000 Payton Non -Dept Check Total 754.83 Vendor: 354 SHOREWOOD TRUE VALUE Check Sequence: 43 119886 Tube 5.95 06/23/2014 101 -32 4245 -0000 General Rfi Works 120072 Nor] Nipple 1498 06/23/2014101 -32- 4245 -0000 General Pull Work, Cbook Total: 20.93 Vendor: 355 SHRED- N -GO INC Check Segnenee, 44 38090 See FIrrn - 06/11/14 35,00 06/23/2014 101 -13 -4400 -0000 General Admin Gteck Total: 3500 Vendor: 360 SOUTH LAKE MINNETONKA POLICE DEPT. Check Sequence: 45 31dQm2014 -LP Lease Payment - 3rd on 57,44100 06/23/2014101 -2L 4620 -0000 General Police July,20LLOBE Operating Bndgct Cap - hdy 86,879.67 0623/2.014101 - 21-4400 -0000 General Police Check Total 144,320.67 Vendor: 376 THE MULCH STORE Check Sequence: 46 15556 Brash Disposal - May Svc 105.00 06232014 101- 324400 -0000 General Pub Works Check "Total: 105.00 Vendor: 379 THREE RIVERS PARK DISTRICT Check Sequence: 47 07/31 /14 -Kids 07/31/14 Kids Kayak Event 150.00 06/232014101 - 534248 -0000 General Reeeation 08 /01 114- Geocac 08 /0IN4- Geocachiug Event INTO 06232014101 -53- 4248 -0000 General Recreation 08/04 /14 -0Gde K 08/04114 Kids Kayak Event 150.00 06232014 101 -53 -4248 0000 General Recreation Gteck Total: 450.00 Vendor: 381 TKDA ENGINEERS ARCI ^HTECTS Check Sequence: 48 002014001634 Shwd Valley 2013 St Rehab - May 8,405 86 06/23/2014 404 -00 -4620 -0003 Street Cap Non -Dept Check Total: 5,40586 Vendor 386 TWIN CITY WATER CLINIC Check Sequenco: 49 5124 Montlay Bacteria Svc 10400 06/23/2014601- 00 -4400 -0000 Water Non -Dept Check Total 10000 Vendor-. 389 UNITED LABORATORIES Cheek Segnence: 50 INVO85202 Detergents& Cleaners 186.95 06/23/2014101 -52 -4245 -0000 General Perk Maint Check Total: 186,95 Accounts Payable Non -Dept Sewer Non -Dept Computer Check Proof List by Vendor Trail No-Dept General Non -Dept User: mngnyen SneetCap Nov -Dept City of Printed, 06/19/2014- 1210PM Genend Non -Dept 's110IeW0001 Batch'. 00004 06.2014 - COUNCIL-06232014 Engineering Invoice No Description Amount Payment Date Acet Number Vendor: 421 VERIZON WIRELESS Check Segneme: 51 9726197061 Sewer &Wwo, Lince - 05/02-06/01 51.68 06/2320/4 601 -00.43210.000 9726197061 Sewer& Waterlines- 05/02 -06/01 5166 06/23/9014 611 -00 -0321 -0000 9726197061 Sewer &Water Llncs- 05/02 -06/01 51.66 06/23/2014631 -00 -4321 -0000 Cheek Iotal 155.00 Vendor 394 VICTORIA REPAIR AND MFG Check Sequence: 52 6100 Bulb Steal 37000 06/23/2014101 -32 -4245 -0000 Cheek Total: 370.00 Vendor. 415 WARNER CONNECT Cheek Sequence: 53 29918804 CompMaint -July 2,555 80 06/232014101 -19- 4221 -0000 Chod,IOA 2,555.80 Vendor: 486 WARNING LITES OF MINNESOTA, INC. Check Segneoce, 54 137109 Tetnpornry NO P.rklug Signs 69,00 06/23/2014 101 -32- 4250 -0000 Check Total: 69.00 Vendo, 403 WENCK ASSOCIATES INC Check Sequence: 55 11402255 Apple Road Chnnoel Stab - May 366.80 06/23/2014631 -00- 4303 -0000 Check'reni: 366.80 Vendor: 408 WMMUELL9;R & SONS INC Check Sequence 56 193145 Road Maio 2,320.00 06/23/2014101 -32 -4250 -0000 Check Total: 2,320 00 Vendor 410 WSB AND ASSOCLVILS INC Check Sequence: 57 01459- 690-20 Smithtown Rd Trl - April 3,506.25 06/23/2014406 -00- 4620 -0001 01459 - 700-19 MCES Forcemain - April 588.00 06/23/2014 611 -004680 -0001 01459-760-12 Vztleywood Are. St -April 2,75700 06/23/2014404 -00 - 4620 -0003 01459 - 810-11 Galpin Lk Rd Td, April 17,095.00 06/232014406- 0046200002 01459 -830 -7 Pa.flac - Suanat Woods Dovelopment - April 73 50 06 /23/2014101 -00 - 34140000 01459 -840 -5 Badge Park Prelim D &E - April 5,954,00 06 /23 /2014402 -00 -0680 -0000 01459 -8504 Snonymile Ln Improvements -April 1,664 00 06/23/2014 404 -00- 4620 -0004 01459 -860 -2 Lift Station Na, l l Rehab - April 276.00 06/23/2014611 -00 - 4680 -0000 01459 -870 -4 Gen Eng Svc - April 4,000,00 06/23/2014101 -31- 4400 -0000 01459 -880 -2 Pnss Tat, - Minonv,,Jm School Addition Plan Rev 294.00 06/23/2014101 -00 - 3414 -0000 01459 -890.3 Wellhead Pt tcetion Plan Amend - April 748.25 06/132014601 -00- 4303 -0000 01459 -900 -2 Mfsc, Engineering Support - April 3046.50 06/23Y2014 101-314400-0000 02092 -710 -6 MS4 Svns - April 282 50 06 /2312014 631 -00 - 4302 -0005 Check Total: 40,285 00 VerWor 411 XCELENE.RGY Check Sequence -58 Stmt 9415553295 5655 Merry Lone- 05/08 -06/09 23.76 06/23/2014 101 -52- 4380 -0000 Check Total: 23.76 Vendor: 485 ZEROREZ - MINNEAPOLIS Check Segncroe: 59 206312 Carpet Cleaning Services 60200 0623/2014201- 004400 -0000 Check Total'. 602 00 Total for Check Pen, 452,679.68 Total of Nmnber of Checks: 59 Fund Dept Water Non -Dept Sewer Non -Dept Stern Water Non -Dept General Pnb Wmlas General Mun Bldg Gen ernl Pnb Works Storm Water Non -Dept General Pob Works '[tail Non -Dept Sewer Non -Dept Sit cot Cap Non -Dept Trail No-Dept General Non -Dept Park Cap Non -Dept SneetCap Nov -Dept Sewer Non -Dept General Dtgiaeering Genend Non -Dept Water Nun -Dept General Engineering Storm Water Non -Dept General Park Maint SSC Non -Dept #3B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Resolution Appointing Election Judges for the 2014 Election and Establishing an Absentee Ballot Board Meeting Date: June 23, 2014 Prepared by: Jean Panchyshyn, City Clerk Attachments: Resolution Policy Consideration: MN Statute 20413.21, Subd. 2 states that election judges for precincts in a municipality shall be appointed by the governing body of the municipality; and MN Statute 20313.121 requires the establishment of an Absentee Ballot Board for processing absentee ballots. Background: Several individuals have expressed their desire to serve as an Election Judge for the 2014 Elections. Occasionally, Elections Judges are not able to work due to unforeseen circumstances. When this occurs, replacement judges are sought out and asked to fill in. There will be 6 -10 Election judges working in the polling place, with the exception of Precinct 1 located on the Island, which has four election judges, the minimum required number, due to the small size of that precinct. Some of the judges work all day and many work half the day. The attached resolution approves the list of Election Judges who are available to officiate at the Primary Election on August 12, 2014 and /or the General Election on November 4, 2014, and provides the City Clerk the authority to assign other individuals to serve as an Election Judge, if needed. Each municipality is required to establish an Absentee Ballot Board for both the Primary and General Elections for the purpose of processing the absentee ballots pursuant to Minnesota State Statute 20313.121. Absentee ballots for all precincts will be processed at City Hall with the help of at least two elections judges of different political parties. It is anticipated that four elections judges will be selected to serve as the Absentee Ballot Board. Hennepin County also processes absentee ballots (military and overseas) for all cities in the County; therefore, county- appointed absentee ballot board members must be appointed by Council to serve as members of the city's Absentee Ballot Board. The attached resolution makes these appointments. Financial or Budget Considerations: The 2014 Budget includes $11,000 for Election Judge services. Recommendation /Action Requested: Approval of the attached Resolution appointing Election Judges for the 2014 Elections and Establishing an Absentee Ballot Board. Next Steps and Timelines: Election Judges will receive training the latter half of July in preparation for serving at the 2014 Primary and General Elections. Connection to Vision/ Mission: providing quality public services. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION APPOINTING 2014 PRIMARY AND GENERAL ELECTION JUDGES AND ESTABLISHING AN ABSENTEE BALLOT BOARD WHEREAS, the City Clerk has submitted for approval a list of individuals who have agreed to serve as Election Judges at the Primary Election on August 12, 2014, and /or the General Election on November 4, 2014; and WHEREAS, the City Clerk has the authority to add additional Election Judges, if needed, to conduct the 2014 Primary and General Elections; and WHEREAS, Shorewood City Hall serves as an Absentee Ballot Center for the residents of Shorewood; and WHEREAS, pursuant to State Statute Section 203B.121, as amended, an Absentee Ballot Board must be established by the City Council to facilitate the absentee process for the upcoming elections; and WHEREAS, the City Council also appoints other individuals and all members appointed to the Hennepin County Absentee Ballot Board as authorized under Minn. Stat. 204B.21, subd. 2 under the direction of the Election Manager to serve as members of the Shorewood Absentee Ballot Board; NOW, THEREFORE BE IT RESOLVED the Shorewood City Council hereby approves the following list of election judges to officiate at the 2014 Primary and General Elections: Lisa Alrick Valorie Gregerson Rebecca Moore Dianne Aslesen Patricia Hauser Chuck Niles Jim Berdahl Joe Kapolka Miechelle Norman Lois Berg James Kendrick Eleanor Ogin Ellen Bock Marianne Kilker Carol Paulsen Karen Boynton Amy Kvalseth Karen Petron Tena Brandhorst Carla LaBore Teddy (Jack) Raby Jerry Brecke Karen Lane Jean Raby Marlys Bucher Audrey Larson Laurie Sacchet Kenneth Cline Shirley Leebens Joanne Schmid Kevin Conley Doug Legault Lynda Simcox Laurel Costello Gordon Levack Phyllis Skinner David Cross Sarah Lien Virgil Smeltzer Catherine DeMars Sandra Louis Alexa Soboleski William Erickson Elaine Love Tim Soboleski Rebecca Fish Jill Majestic Barb Spannaus Marilyn Gagne Roxanne Martin Jane Stein Bob Gagne Michael McDonald Barbara Thibault Pamela McDonald Sherry White BE IT FURTHER RESOLVED the Shorewood City Council hereby directs the City Cleric to appoint at least two election judges of different political parties to serve as the Absentee Ballot Board as required in State Statute Section 203B.121, as amended. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk City of Shorewood Council Meeting Item Title/Subject: Approval of the 2015-2017 Joint CoopeoationAgreement/Community Development Block Grant (CDBG) Program Meeting Date: June 23,2Ol4 Prepared by: Bill Joynes, City Administrator Jean Panchyshyn, City Clerk Attachments: Agreement, Resolution MWES MEETING TYPE Regular Meeting Background: The attached request from the Hennepin County Department of Housing, Community Works and Transit relates to the 2015-2017 Joint Cooperation Agreement/Comm unity Development Block Grant (CDBG) Program and outlines a few changes to the Joint Cooperation Agreement The City of Shorewood has participated for many years in the Urban Hennepin County Community Development Block Grant Program for the federal Community Development Block Grant (CDBG) program administered by the U.S. Department ofHousing and Urban Development (HUD). Participation with Hennepin County provides for a more efficient use of funds, rather than having small sums accumulate in accounts for individual cities. Urban Hennepin County communities may compete within the Consolidated Pool for larger grant amounts. The focus ofthe CDBG program has changed over the years, with more attention being paid tohousing. The program remains focused on serving persons with low and moderate incomes. Recommendation / Action Requested: Staff recommends that the City Council adopt the Resolution approving the 2015-2017 Joint Cooperation Agreement and authorizing its execution. Next Steps and Timelines: |f approved, staff will submit three copies of the Agreement to the County along with two original resolutions, as requested. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and soundfinancial management through effective, efficient, and visionary leadership. Page 1 Henn,epin, Hennepin County Depo avtment of Hous'ung, Commu its Works & Transft 7 ®1 Fourth Avenue South, Suite 40® Minneapolis, Minnesota 55415 June 4, 2014 Mr. William Joynes City Administrator City of Shorewood 5755 Country Club Road Shorewood, MN 55331 612-348-9260, Phone 612-348-9710, Fax www.hennepin.us Subject: Fiscal Year 2015 — 2017 Joint Cooperation Agreement/Community Development Block Grant (CDBG) Program —Action Needed Dear Mr. Joynes: On April 1, 2014, we sent a letter regarding your participation in the Urban Hennepin County Community Development Block Grant (CDBG) Program (Urban County CDBG Program). Since then, HUD released Notice CPD-13-04 dated April 25, 2014 which requires certain changes to the Joint Cooperation Agreement (JCA) for 2015-2017. The attached. revised 2015-2017 JCA reflects the following changes: 1) The addition of language stating that the agreement covers not only the CDBG Entitlement program and the HOME Investment Partnership (HOME), but also the Emergency Solutions Grants (ESG) Programs. 2) The addition of a provision that a unit of general local government may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non-Federal considerations, but must use such funds for activities eligible under Title I of the Act. This new requirement is contained in the FY2014 HUD appropriation bill. 3) Clarification of Fair Housing language. In addition, we are taking this opportunity to move contract term language specific to the CDBG contract year from the JCA Section D to the annual CDBG subrecipient contracts for awards starting in FY 2015. Finally, Planning and Administrative cost language has been expanded to reflect the County's growing costs associated with compliance and timeliness monitoring and the potential need for runityEmploye led Ror Mr. Joynes June 4, 2014 Page 2 future increases (the County has retained 13 percent since 2002; the maximum allowed by HUD is 20 percent) within the term of the JCA. These changes require a certified City resolution approving the new/amended JCA. Attached is a sample resolution for your use. Please return three signed copies of page 9 of the 2015-2017 JCA and two certified resolutions by July 18, 201.4 to: Margo Geffen Manager, Housing Development and Finance Hennepin County Housing, Community Works and Transit 701 Fourth Avenue South, Suite 400 Minneapolis, MN 55415 Copies of these materials, including a red-lined version of the revised 2015-201.7 JCA, were also sent to you via email. Please don't hesitate to call me at 612-543-1965 or Abby Shafer at 612-348-2205 with any questions. Thank you for your patience with respect to the timing of this request. Sincerely, Margo Geffen/ Manager, Housing Development and Finance Enclosures cc: Abby Shafer, Hennepin County Contract No. l40Q05 JOINT COOPERATION AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT made and entered into by and between the COUNTY ()P BENNBP0N, State of hereinafter referred to as"COUNTY,"&-24UUGovernment Center, Minneapolis, Minnesota, 55407, and the cities executing this Master Agreement, each hereinafter respectively referred to as "COOPERATING UNIT, " said parties to this Agreement each being governmental units ofthe State of Minnesota, and made pursuant to Minnesota Statutes, Section 471.59. W0TNESSETH: COOPERATING UNIT and COUNTY agree that it is desirable and iothe interests of their citizens that COOPERATING UNIT shares its authority to carry out essential community development and housing activities with COUNTY in order to permit COUNTY tosecure and administer Community Development Block Grant and HOME Investment Partnership funds as an Urban County within the provisions of theAct as herein defined and, therefore, in consideration of the mutual covenants andpnommisoa contained in this Agreement, the parties mutually agree 10 the following terms and conditions. COOPERATING UNIT acknowledges that hvthe execution ofthis Agreement that b understands that it: I . May not also onnk' for grunts under the State CDB(] Program from appropriations for fiscal years during which it is participating in the Urban County Program; and 2. May not participate ino HOME Consortium except through the Urban County. 3. May not receive u formula allocation under the Emergency Solutions Grants (E8G) Program except through the Urban County. The definitions contained in 42 U.S.C. 5302 of the Act and 24 CFN G570.3 of the Regulations are incorporated herein by reference and made upart hereof, and the terms defined in this section have the meanings given them: A. "Act rneonsTbbelofthe Housing and Community Development Act ofl974,as amended, (42 U.S.C. 5]01 «tueq.). B. "^Activity" means aCDBG-ftinded activity eligible under Title lof the Housing and Community Development Act of 1974, as amended. Example: single family rehab activity. C. "Annual Program" means those combined activities submitted by cooperating units to COUNTY for CD8G funding um part oy the Consolidated Plan. D. "Consolidated Plan" means the document bearing that title or uinui|azh/ required statements or documents submitted to HUD for authorization to expend the annual grant amount and which is developed hv the COUNTY in conjunction nitb COOPERATING UNITS ua part ofthe Community Development Block Grant Program. B. "Cooperating Unit(s)" means any city or town in Hennepin County that has entered into a cooperation agreement that ia identical to this Agreement, us well as Hennepin County, which iaaparty to each Agreement. `_ F. "l{O[>" means the United States Department of Housing and Urban Development. G. "Metropolitan City" means any city located in whole or in part in Hennepin County which is certified hv HUD to have u population of50,00Oor more people. H. "Progmm" means the HUD Community Development Block Grant Program as defined under Title |of the Housing and Community Development Act of)V74,asamended. l. "Program Income" means gross income received by the recipient or a subrecipient directly generated from the use ofCl)B(]. J. means the rules and regulations promulgated pursuant to the Act, including but not limited to 24 CFR Part 570. K. "Urban means the entitlement jurisdiction within the provisions of the Act and includes the suburban Hennepin County municipalities which are signatories to this Agreement. The purpose nfthis Agreement intoauthorize COUNTY and COOPERATING UNIT tocooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities and authorizes COUNTY to carry out these and other eligible activities for the benefit of eligible recipients who reside within the corporate limits of the COOPERATING UNIT which will be funded from annual Community Development Block Grant, Emergency Solutions Grants NRSO\ Programs and HOME appropriations for the Federal Fiscal Years 2015, 2016 and 2017 and from any program income generated from the expenditure ofsuch funds. 111. AGREEMENT The initial term of this Agreement iy for uperiod commencing on October l,20l4and terminating no sooner than the end of the program year covered by the Consolidated Plan for the basic grant amount for the Fiscal Year 2017, aa authorized hv HUD, and for such additional time as may bc required for the expenditure of funds granted tothe County for such period. Prior to the end of the initial term and the end of each subsequent qualification period, the COUNTY, as the lead agency of the URBAN BENNGPlNCOONTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, shall provide a written notice to the COOPERATING UNIT of their right not to participate ina subsequent qualification period. The written notice will provide the COOPERATING UNIT u minimum thirty (3O) day period to submit a written withdrawal. If the COOPERATING UNIT does not submit to the COUNTY a written withdrawal during the notice period, this Agreement shall be automatically extended for a subsequent three-year qualifying period. This Agreement must 6c amended hv written agreement oF all parties 10 incorporate any future changes necessary to meet the requirements for cooperation agreements set forth inthe Urban County Qualification Notice applicable for the year in which the next qualification of the County imscheduled. Failure by either party to adopt such an amendment to the Agreement shall automatically terminate the Agreement following the expenditure of all CDBG and HOME funds allocated for use in the COOPERATING UNIT's jurisdiction. This Agreement shall remain in effect until the CDBG, HOME and ESG funds and program income received (with respect to activities carried out during the three-year qualification period, and any successive qualification periods under agreements that provide for automatic renewals) are expended and the funded activities completed. COUNTY and COOPERATING UNIT cannot terminate or withdraw form this Agreement while it remains in effect. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at the end of the program period during which HUD withdraws its designation of the COUNTY as an Urban County under the Act. This Agreement shall be executed by the appropriate officers of COOPERATING UNIT and COUNTY pursuant to authority granted them by their respective governing bodies, and a copy of the authorizing resolution and executed Agreement shall be filed promptly by the COOPERATING UNIT in the Hennepin County Department of Housing, Community Works and Transit so that the Agreement can be submitted to HUD by July 25, 2014. COOPERATING UNIT and COUNTY shall take all actions necessary to assure compliance with the urban county's certifications required by Section 104(b) of the Title I of the Housing and Community Development Act of 1974, as amended, including Title V1 of the Civil Rights Act of 1964; the Fair Housing Act, and affirmatively furthering fair housing. COOPERATING UNIT and COUNTY shall also take all actions necessary to assure compliance with Section 109 of Title I of the Housing and Community Development Act of 1974 (which incorporates Section 504 of the Rehabilitation Act Of 1973 and the Age Discrimination Act of 1975), and other applicable laws. IV. ACTIVITIES COOPERATING UNIT agrees that awarded grant funds will be used to undertake and carry out, within the terms of this Agreement, certain activities eligible for funding under the Act. The COUNTY agrees and will assist COOPERATING UNIT in the undertaking of such essential activities by providing the services specified in this Agreement. The parties mutually agree to comply with all applicable requirements of the Act and the Regulations and other relevant Federal and/or Minnesota statutes or regulations in the use of basic grant amounts. Nothing in this Article shall be construed to lessen or abrogate the COUNTY's responsibility to assume all obligations of an applicant under the Act, including the development of the Consolidated Plan, pursuant to 24 CFR Part 91. COOPERATING UNIT further specifically agrees as follows: A. COOPERATING UNIT will, in accord with a COUNTY-established schedule, prepare and provide to the COUNTY, in a prescribed form, requests for the use of Community Development Block Grant Funds consistent with this Agreement, program regulations and the Urban Hennepin County Consolidated Plan. B. COOPERATING UNIT acknowledges that, pursuant to 24 CFR §570.501 (b), it is subject to the same requirements applicable to subrecipients, including the requirement for a written Subrecipient Agreement set forth in 24 CFR §570.503. The Subrecipient Agreement will cover the implementation requirements for each activity funded pursuant to this Agreement and shall be duly executed with and in a form prescribed by the COUNTY. C. COOPERATING UNIT acknowledges that it is subject to the same subrecipient requirements stated in paragraph B above in instances where an agency other than itself is undertaking an activity pursuant to this Agreement on behalf of COOPERATING UNIT. ln such instances, awritten Third Party Agreement shall be duly executed between the agency and COOPERATING QND[ in u form prescribed hvCOUNTY. D. COOPERATING UNITS shall expend all funds annually allocated to activities pursuant to the Subrecipient Agreement. I . All funds not expended pursuant to the terms of the Subrecipient Agreement will be relinquished to the COUNTY and will be transferred to a separate account for reallocation on a competitive request for proposal basis at the discretion of the COUNTY where total of such funds io$l00,O00orgreater. Amounts less than $l00,U00 shall be allocated hv COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. B. COUNTY and COOPERATING UNITS shall expend all program income pursuant tothis Agreement as provided bckzvv: l. Program income from housing rehabilitation activities administered bythe COUNTY will be incorporated into a pool at the discretion of the COUNTY. The pool will hc administered hy COUNTY and will bc used for housing rehabilitation projects \ouutcdtbrouohoutthe entire Urban County. When possible, COUNTY will give priority to funding housing rehabilitation projects within the COOPERATING UNIT where the program income was generated. Fuuda expended in this manner would be secured by a Repayment Agreement/Mortgage running in favor of the COUNTY. Program income generated hv certain COOPERATING UNITS that administer their own housing rehabilitation activities may be retained by the COOPERATING UNIT at its discretion; however, such COOPERATING UNITS will be bound by the conditions of[}.2.,above. Only COOPERATING UNITS that were administering their own activities pursuant to the Joint Cooperation Agreement pertaining io the B[JD fiscal years 2012-2014 will be eligible to retain their program income. 2. COUNTY reserves the option to recapture program income generated by rehabilitation activities if said funds have not been expended within twelve (l2) nxouthaof being generated. These funds ohuU bc transferred \o a separate account for reallocation on o competitive request for proposal basis administered by COUNTY or, where the total ofsuch funds does not exceed $100,000, shall be reallocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated 9|on goals. P. COOPERATING UNITS are encouraged to undertake joint activities involving the sharing of funding when. such action furthers the goals of the Consolidated Plan and meets the expenditure goals. O. If COUNTY is notified by BUD that it has not met the performance standard for the timely expenditure of funds at24CFRL57U.gO2(a) and the COUNTY entitlement grant im reduced hvBl)[} according 10 its policy on corrective actions, then the basic grant amount to any COOPERATING UNIT that has not met its expenditure goal shall be reduced accordingly. H. COOPERATING UNIT will take actions necessary to uasa1 in accomplishing the community development program and housing goals, as contained in the Urban Hennepin County Consolidated L COOPERATING UNIT shall ensure that all activities funded, in part min full by grant funds received pursuant to this Agreement, shall be undertaken affirmatively with regard to fair housing, employment and business opportunities for minorities and women. It shall, in ionp|enzcntingoD programs and/or activities funded by the basic grant amount, comply with all applicable Federal and Minnesota Laws, statutes, rules and regulations with regard to civil rights, affirmative action and equal employment opportunities and Administrative Rule issued by the COUNTY. J. COOPERATING UNIT that does not affirmatively further fair housing within its own jurisdiction or that impedes action by COUNTY to comply with its fair housing certification shall be prohibited from receiving CDBG funding for any activities. K. COOPERATING UNIT shall participate in the citizen participation process, as established by COUNTY, in compliance with the requirements of the Housing and Community Development Act of 1974, as amended. L. COOPERATING UNIT shall reimburse COUNTY for any expenditure determined by HUD or COUNTY to be ineligible. M. COOPERATING UNIT shall prepare, execute, and cause to be filed all documents protecting the interests of the parties hereto or any other party of interest as may be designated by the COUNTY. N. COOPERATING UNIT has adopted and is enforcing: I A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within its jurisdiction. O. COOPERATING UNIT shall not sell, trade, or otherwise transfer all or any portion of grant funds to another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non- Federal considerations, but must use such funds for activities eligible under Title I of the Act. COUNTY further specifically agrees as follows: A. COUNTY shall prepare and submit to HUD and appropriate reviewing agencies, on an annual basis, all plans, statements and program documents necessary for receipt of a basic grant amount under the Act. B. COUNTY shall provide, to the maximum extent feasible, technical assistance and coordinating services to COOPERATING UNIT in the preparation and submission of a request for funding. C. COUNTY shall provide ongoing technical assistance to COOPERATING UNIT to aid COUNTY in fulfilling its responsibility to HUD for accomplishment of the community development program and housing goals. D. COUNTY shall, upon official request by COOPERATING UNIT, agree to administer local housing rehabilitation activities funded pursuant to the Agreement, provided that COUNTY shall receive Twelve percent (12%) of the allocation by COOPERATING UNIT to the activity as reimbursement for costs associated with the administration of COOPERATING UNIT activity. E. COUNTY may, at its discretion and upon official request by COOPERATING UNIT, agree to administer, for a possible fee, other activities funded pursuant to this Agreement on behalf of COOPERATING UNIT. F. COUNTY may, as necessary for clarification and coordination of program administration, develop and implement Administrative Rules consistent with the Act, Regulations, HUD administrative directives,, and administrative requirements of COUNTY. V. ALLOCATION OF BASIC GRANT AMOUNTS Basic grant amounts received by the COUNTY under Section 106 of the Act shall be allocated as follows: A. Planning and administration costs are capped to 20 percent of the sum of grant plus program income that is received during the program year. During the term of this Agreement the COUNTY anticipates planning and administrative retainage of thirteen to fifteen percent (13-15%);included in this administrative amount is funding for annual county-wide Fair Housing activities. B. The balance of the basic grant amount shall be made available by COUNTY to COOPERATING UNITS in accordance with the formula stated in part C and the procedure stated in part D of this section utilizing U.S. Census Bureau data. The allocation is for planning purposes only and is not a, guarantee of funding. C. Allocation of funding will be based upon a formula using U.S. Census Bureau data that bears the same ratio to the balance of the basic grant amount as the average of the ratios between: 1. The population of COOPERATING UNIT and the population of all COOPERATING UNITS. 2. The extent of poverty in COOPERATING UNIT and the extent of poverty in all COOPERATING UNITS. The extent of overcrowded housing by units in COOPERATING UNIT and the extent of overcrowded housing by units in all COOPERATING UNITS. 4. In determining the average of the above ratios, the ratio involving the extent of poverty shall be counted twice. D. Funds will be made available to communities utilizing the formula specified in C of this Section in the following manner: I All COOPERATING UNITS with aggregate formula percentages of greater than three and one half percent (3.5%) of the total using the procedure in part C. of this section will receive funding allocations in accordance with the COUNTY formula allocations. 2. COOPERATING UNITS with aggregate formula percentages of three and one half percent (3.5%) or less of the total using the procedure in part C. of this section will have their funds consolidated into a pool for award in a manner determined by COUNTY on a competitive request for proposal basis. Only the COUNTY and COOPERATING UNITS whose funding has been pooled will be eligible to compete for these funds. E. The COUNTY shall develop these ratios based upon data to be furnished by HUD. The COUNTY assumes no duty to gather such data independently and assumes no liability for any errors in the data furnished by HUD. F. In the event COOPERATING UNIT does not request a funding allocation, or a portion thereof, the amount not requested shall be made available to other participating communities, in a manner determined by COUNTY. VI. METROPOLITAN CITIES Any metropolitan city executing this Agreement shall defer their entitlement status and become part of Urban Hennepin County. This agreement can be voided if the COOPERATING UNIT is advised by HUD, prior to the completion of the re-qualification process for fiscal years 2015-2017, that it is eligible to become a metropolitan city and the COOPERATING UNIT elects to take its entitlement status. If the agreement is not voided on the basis of the COOPERATING UNIT's eligibility as a metropolitan city prior to June 20, 2014, the COOPERATING UNIT must remain a part of the COUNTY program for the entire three-year period of the COUNTY qualification. VII. OPINION OF COUNSEL The undersigned, on behalf of the Hennepin County Attorney, having reviewed this Agreement, hereby opines that the terms and provisions of the Agreement are fully authorized under State and local law and. that the COOPERATING UNIT has full legal authority to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and publicly-assisted housing. Assistant County Attorney VIII. HENNEP0NCOUNTY EXECUTION The Hennepin County Board of Commissioners having duly approved this Agreement on 2014, and pursuant to such approval and the proper County official having signed this Agreement, the COUNTY agrees tobe bound bythe provisions herein set forth. Assistant County Attorney Date: COUNTY DF8ENNEPDN, STATE OFMINNESOTA LIN FROM Chair of its County Board Assistant/Deputy/County Administrator Deputy/Clerk of the County Board RECOMMENDED FOR APPROVAL Assistant County /\dministrotor - PubDcWorks Date: Department, Housing, Community Works and Transit [}ate: I COOPERATING UNIT, having signed this Agreement, and the COOPERATING UNIT'S governing body having duly approved this Agreement on , 2014, and pursuant to such approval and the proper city official having signed this Agreement, COOPERATING UNIT agrees to be bound by the provisions of this Joint Cooperation Agreement. CITY OF By: Its Mayor And: Its City Manager ATTEST: CITY MUST CHECK ONE: The City is organized pursuant to: Plan A Plan B Charter CITY OF SHOREWOOD RESOLUTION NO. 14- RESOLUTION AUTHORIZING THE EXECUTION OF A JOINT COOPERATION AGREEMENT BETWEEN THE CITY OF SHOREWOOD AND HENNEPIN COUNTY FOR PARTICIPATION IN THE URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM IN FY 2015 - 2017 WHEREAS, the City of Shorewood, Minnesota and the County of Hennepin have in effect a Joint Cooperation Agreement for purposes of qualifying as an Urban County under the United States Department of Housing and Urban Development Community Development Block Grant (CDBG), Emergency Solutions Grants (ESG) Program, and HOME Investment Partnerships (HOME) Programs; and WHEREAS, the City and County wish to execute a new Joint Cooperation Agreement in order to continue to qualify as an Urban County for purposes of the Community Development Block Grant, ESG and HOME Programs. BE IT THEREFORE RESOLVED that a new Joint Cooperation Agreement between the City and County be executed effective October 1, 2014 and that the Mayor and the City Administrator be authorized and directed to sign the Agreement on behalf of the City. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014. ATTEST: Jean Panchyshyn, City Clerk Scott Zerby, Mayor Jean Panchyshyn Subject: FVV Item 3C'FVV Hennepin County Housing Division Updates &COB@JCAAction Needed Fromm: Margo Geffen Sent: Monday, 3une23, 2014 4:17 IPM To:]ean Panchyshyn Subject: RE: Hennepin County Housing Division Updates O,COBG ]CA Action Needed 1. Here is information mnESG: The Emergency Solutions Grants Program (ESG) is distributed by formula to cities, urban counties, and states and can be used for street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and homeless management information systems. Hennepin County's ESG funding is primarily used as rapid re-housing to assist households experiencing a housing crisis to regain stability in permanent housing by providing short term rental assistance and services that address each household's specific barriers to stable housing. Priority is given 1m families who were living in suburban Hennepin County. The funding is awarded 1m vendors through anRFPprocess that's currently soliciting proposals. For more information: To be clear, the Joint Cooperation Agreement dictates CDBG but the new language referenced the fact that if you are part of the urban county, that you can't apply for a separate allocation of ESG funds. 3.Regarding the percentage allocation. HUD calculates an allocation for each city according 1mits population, overcrowding and poverty. Those cities which account for less than 3.5% of the County's allocation are part of the "Consolidated Pool". Shmrewmmd's allocation was approximately .49%. The impact 1m the City is that you would not have the opportunity 1m apply for CDBG funds if you chose 1m opt out. 15%mf the funding in the consolidated pool goes to Public Services, some of those could be available a service that serves the entire county. Also, if there isa Public Service that serves the residents of Shorewood, as long as it met the HUD qualifications, you could encourage that group 1m apply aswell. Thank you! Margo Margo Geffen Manager, Housing Development and Finance Housing, Community Works and Transit I Hennepin County Public Works 7014* Avenue S, Suite 400 1 Minneapolis, MIN 55415 M #3D MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Cooperative Agreement for the T.H. 7 and County Road 19 (Oak Street) Intersection Project, S.P. 2706 -225 (TH7) Meeting Date: June 23, 2014 Prepared by: Larry Brown, Director of Public Works Attachments: Agreement MNDOT and Plans Policy Consideration: Should the City enter into agreement with the Minnesota Department of Transportation ( MNDOT) and the City of Excelsior, for a traffic control signal system at the intersection of T.H. 7 and County Road 19 (Oak Street) Intersection Project, S.P. 2706 -225 (TH7)? Background: Attachments 1 and 2 to this memorandum is final proposed cooperative agreement and plans for the replacement traffic control signal system and intersection modifications for the subject intersection. As proposed, parties to this agreement include MNDOT, the City of Excelsior, and the City of Shorewood. The plans include replacement of the existing signal system, addition of dual left turn lanes Eastbound 7 to Northbound County Road 19, and minor ADA sidewalk improvements. The overall estimated cost $212,000. MNDOT will be funding 67.0% of the costs, with the remaining 33.0% being funded by Hennepin County. In accordance with the agreement, the Cities of Shorewood and Excelsior will be responsible for the following items: 1. Maintain the signal pole mounted L.E.D. luminaires and all internal components, including replacing the luminaires when necessary. 2. Replace the Signal System L.E.D. indications. 3. Clean the Signal System controller cabinet and service cabinet exteriors. 4. Clean the Signal System and luminaire mast arm extensions S. Excelsior and Shorewood shall jointly be responsible for the maintenance of any sidewalk construction, including stamped and colored concrete sidewalk (if any) and pedestrian ramps. Maintenance includes, but is not limited to, snow, ice and debris removal, patching, crack repair, panel replacement, mowing grass boulevards (if any) and any other maintenance activities necessary to perpetuate the sidewalks in a safe, useable, and aesthetically acceptable condition. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 6. Excelsior and Shorewood will share equally in the maintenance and Gopher State One Call costs for the advanced EVP detector and all its components (including wiring) originating from the existing Hennepin County traffic signal handhole West (and nearest) to the Hennepin County Signal mast arm location on County State Aid Highway No. 19 (Oak Street) at Water Street. Item 5 is in response to staff putting MNDOT staff on notice of future proposed walk improvements along Trunk Highway 7, as part of the Galpin Lake Road trail project. Item 6 is in response to a long standing discussion regarding the need to improve signal response to emergency vehicle preemption (EVP) to provide safer access through the subject intersection. Staff has petitioned the state to relocate the sensors for the EVP (EVP) system to the signal at Water Street and County Road 19. The State initially declined the request, citing that it was not customarily the States practice to co locate State signal hardware on Hennepin County's mast arm, or equipment. Due to staff's ongoing persistence in the need for this change, the State has acquiesced, given the stated conditions. Representatives from Police, Fire, Shorewood and Excelsior staff strongly believe that this change and conditions the State is demanding is well worth the added safety that this provides for emergency response. Financial or Budget Considerations: None. Options: 1. Approve the resolution accepting the agreement, as proposed. 2. Provide Staff with alternative direction. Recommendation / Action Requested: 1. Staff is recommending Option 1 be selected: approve the resolution at adopts the agreement, as proposed. It is noted that the resolution varies from the City's standard form, to meet the State of Minnesota requirements. Connection to Vision / Mission: Providing safe and effective traffic control systems is one component of a quality public service. MnDOT Contract No: 04597 STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION And CITY OF EXCELSIOR And CITY OF SHOREWOOD TRAFFIC CONTROL SIGNAL MAINTENANCE AGREEMENT State Project No. 2706 -225 Control Section (C.S.): 2706 Trunk Highway Number (T.H.): 7 =012 Signal System ID 20133 This Agreement is between the State of Minnesota, acting through its Commissioner of Transportation ( "State "), the City of Excelsior acting through its City Council ( "Excelsior "), and the City of Shorewood acting through its City Council (" Shorewood "). Recitals Hennepin County, Excelsior, ShoreNvood, and the State have found it in the best interest of the Public to remove the existing Traffic Control Signal and Emergency Vehicle Preemption System and install a new Traffic Control Signal Nvith Accessible Pedestrian Signals ( "APS "), Signal Pole Mounted L.E.D. Luminaires, Interconnect, and Signing ( "Signal System"), and a new Emergency Vehicle Preemption System ( "EVP System ") on Trunk Highway- No. 7 at County State Aid Highway No. 19 (Oak. Street) in the Cities of Excelsior and ShoreNvood, Hennepin County, Minnesota; and 2. Excelsior, ShoreNvood, and the State Nvish to define their respective poNver, operation, and maintenance responsibilities for the new Signal System and EVP System, on Trunk Highway No. 7 at County State Aid Highway No. 19 (Oak. Street) in the Cities of Excelsior and ShoreNvood, Hennepin County, Minnesota; and 3. Excelsior, ShoreNvood, and the State NN-111 participate in the poNver, operation and maintenance of the new Signal System and EVP System. 4. Municipal Agreement No. 04956 between the State and Hennepin County Neill address the cost participation for the new Signal System and EVP System; and 5. Minnesota Statutes § 161.20, subdivision 2 authorizes the Commissioner of Transportation to make arrangements Nvith and cooperate Nvith any governmental authority for the purposes of constructing, maintaining and improving the trunk highway system. Agreement 1. Term of Agreement; Survival of Terms 1.1. Effective date. This Agreement Nvill be effective on the date the State obtains all signatures required by Minnesota Statutes § 16C.05, subdivision 2. 1.2. Expiration date. This Agreement Nvill expire when all obligations have been satisfactorily fulfilled. 1.3. Vurvival of terms. All clauses Nvhich impose obligations continuing in their nature and Nvhich must survive in order to give effect to their meaning will survive the expiration or termination of this Agreement, including, Nvithout limitation, the folloN ing clauses: 5. Liability; Worker Compensation Claims; Insurance; 7. State Audits; 8. Government Data Practices; 9. Governing Law; Jurisdiction; Venue; and 11. Force -1- MnDOT Contract No: 04597 Majeure. The terms and conditions set forth in Article 2. Signal System and EVP System PoNver, Operation and Maintenance may be terminated by another Agreement between the parties. 2. Signal System and EVP System Power, Operation, and Maintenance Operation and maintenance responsibilities Nvill be as follows for the new Signal System and EVP System on Trunk Highwa -,T No. 7 at County State Aid Highwa -,T No. 19 (Oak. Street) in the Cities of Excelsior and Shorev-ood. 2.1. Excelsior /Shorewood Responsibilities A. Power. Excelsior and Shorewood shall be jointly responsible for the installation of an adequate power supply to the service pad or pole, and for providing all necessary electrical power for the operation of the new Signal system and EVP System. Excelsior shall receive the bill for the electrical power including connection fees and the monthly electrical bill for the new Signal System and EVP System, and invoice Shorewood for 50 percent of the costs. B. Minor Signal System Maintenance. Excelsior and Shorewood shall jointly be responsible for the folloNving, Nvithout cost to the State. i. Maintain the signal pole mounted L.E.D. luminaires and all internal components, including replacing the luminaires when necessary. ii. Replace the Signal System L.E.D. indications. iii. Clean the Signal System controller cabinet and service cabinet exteriors. iv. Clean the Signal System and luminaire mast arm extensions C. Sidewalks. Excelsior and Shorewood shall jointly be responsible for the maintenance of any sidewalk construction, including stamped and colored concrete sidewalk (if any) and pedestrian ramps. Maintenance includes, but is not limited to, snow, ice and debris removal, patching, crack repair, panel replacement, moNving grass boulevards (if any) and any other maintenance activities necessary to perpetuate the sidewalks in a safe, useable, and aesthetically acceptable condition. Excelsior shall perform the minor signal system maintenance and sidewalk activities listed abo>>e and bill Shorewood 50 percent of the costs. D. EVP. Excelsior and Shorewood Nvill provide the State's District Engineer or their designated representative a list of all vehicles Nvith EVP emitter units, if requested by the State. 2.2. State Responsibilities A. Interconnect; Timing; Other Maintenance. The State Nvill maintain the interconnect and signing, and perform all other Signal System, APS, and signal pole L.E.D. luminaire circuit maintenance without cost to Excelsior and Shorewood. All Signal System timing Nvill be determined by the State, and no changes Nvill be made Nvithout the State's approval. B. EVP System Operation. The EVP System Nvill be installed, operated, maintained, and removed according to the folloNving conditions and requirements: i. Maintenance of the EVP System on Trunk HighwaN- No. 7 at County State Aid Highwa -,T No. 19 (Oak Street) must be done by State forces. Excelsior and Shorewood Neill share equally in the maintenance and Gopher State One Call costs for the advanced EVP detector and all its components (including Nviring) originating from the existing Hennepin County traffic signal handhole West (and nearest) to the Hennepin County Signal mast arm location on County State Aid Highwa -,T No. 19 (Oak Street) at Water Street. -2- MnDOT Contract No: 04597 ii. Emitter units may be installed only on authorized emergency vehicles, as defined in Minnesota Statutes § 169.011, Subdivision 3. Authorized emergency vehicles may use emitter units only when responding to an emergency. iii. Malfunction of the EVP Svstem must be reported to the State immediately. iv. In the event the EVP Svstem or its components are, in the opinion of the State, being misused or the conditions set forth in Paragraph ii. above are violated, and such misuse or violation continues after Excelsior or Shorewood receives v ritten notice from the State, the State may remove the EVP System. Upon removal of the EVP System pursuant to this Paragraph, all of its parts and components become the property of the State. v. All timing of the EVP System Neill be determined by the State 2.3. Right of Way Access. Each party authorizes the other party to enter upon their respective public right of Nvay to perform the maintenance activities described in this Agreement. 2.4. Related Agreements. i. This agreement Neill supersede and terminate Agreement No. 66167, dated August 8, 1990, between Hennepin County, Excelsior, and ShoreNvood, for the intersection of Trunk HighwaN- No. 7 and County State Aid HighwaN- No. 19 (Oak. Street) in Excelsior and ShoreNvood, Hennepin County, Minnesota. Hennepin County Nvill be sent a letter of termination regarding this agreement. ii. This agreement Neill supersede and terminate terms and conditions of Agreement No. 78181R, dated September 17, 1999, for maintenance and operation of the Emergency Vehicle Pre - emption System, on Trunk HighwaN- No. 7 at County State Aid HighwaN- No. 19 (Oak. Street) between Shorewood and the State. 3. Authorized Representatives Each party s Authorized Representative is responsible for administering this Agreement and is authorized to give and receive anv notice or demand required or permitted by this Agreement. 3.1. The State's Authorized Representative Nvill be: Name /Title: Allan Espinoza, MnDOT Metropolitan District Traffic Engineering (or successor) Address: 1500 County Road B2 West, Roseville, MN 55113 Telephone: (651) 234 -7812 Fax: (651) 234 -7850 E -Mail: allan.espinoza�a;state.mn.us 3.2. Excelsior's Authorized Representative Nvill be: Name /Title: Dave Wisdorf, Excelsior Public Works Director (or successor) Address: 151 Oak. Street, Excelsior, MN 55331 Telephone: (952) 474 -5233 Fax: (952) 474 -6300 3.3. ShoreNvood's Authorized Representative Neill be: Name /Title: Larry Brovm, ShoreNvood Public Works Director(or successor) Address: 24200 SmithtoN -,n Road, ShoreNvood, MN 55331 Telephone: (952) 960 -7900 Fax: (952) 474 -0128 MnDOT Contract No: 04597 4. Assignment; Amendments; Waiver; Contract Complete 4.1. Assignment. Neither party may assign or transfer any rights or obligations under this Agreement Nvithout the prior consent of the other party and a N ritten assignment agreement, executed and approved by the same parties who executed and approved this Agreement, or their successors in office. 4.2. Amendments. Any amendment to this Agreement must be in writing and Nvill not be effective until it has been executed and approved by the same parties who executed and approved the original Agreement, or their successors in office. 4.3. Waiver. If a party fails to enforce any provision of this Agreement, that failure does not Nvaive the provision or the party's right to subsequently enforce it. 4.4. Contract Complete. This Agreement contains all prior negotiations and agreements between Excelsior, ShoreNvood, and the State. No other understanding regarding this Agreement, Nvhether v ritten or oral, may be used to bind either party. 5. Liability; Worker Compensation Claims; Insurance 5.1. Each party is responsible for its own acts, omissions and the results thereof to the extent authorized by law and Neill not be responsible for the acts and omissions of others and the results thereof. Minnesota Statutes § 3.736 and other applicable law govern liability of the State. Minnesota Statutes Chapter 466 and other applicable law govern liability of Excelsior and ShoreNvood. 5.2. Each party is responsible for its own employees for any claims arising under the Workers Compensation Act. 6. Nondiscrimination Provisions of Minnesota Statutes § 181.59 and of any applicable law relating to civil rights and discrimination are considered part of this Agreement. 7. State Audits Under Minnesota Statutes § 16C.05, subdivision 5, Excelsior's and ShoreNvood's books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by the State and the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this Agreement. 8. Government Data Practices Excelsior, ShoreNvood, and the State must comply Nvith the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by the State under this Agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by Excelsior and Shorewood under this Agreement. The civil remedies of Minnesota Statutes § 13.08 apply to the release of the data referred to in this clause by either the Excelsior or Shorewood or the State. 9. Governing Law; Jurisdiction; Venue Minnesota law governs the validity, interpretation and enforcement of this Agreement. Venue for all legal proceedings arising out of this Agreement, or its breach, must be in the appropriate state or federal court Nvth competent jurisdiction in Ramsey County, Minnesota. 10. Termination by Mutual Agreement This Agreement may be terminated by mutual agreement of the parties. 11. Force Majeure Neither party Neill be responsible to the other for a failure to perform under this Agreement (or a delay in performance), if such failure or delay is due to a force majeure event. A force majeure event is an event beyond a -4- MnDOT Contract No: 04597 party's reasonable control, including but not limited to, unusually severe Nveather, fire, floods, other acts of God, labor disputes, acts of Nvar or terrorism, or public health emergencies. (The remainder of this page intentionally left blank) -5- CITY OF EXCELSIOR The undersigned certify that they have lav,-fully executed this contract on behalf of the Governmental Unit as required by applicable charter provisions, resolutions or ordinances. Bv: Title Date Bv: Title Date -6- MnDOT Contract No: 04597 CITY OF SHOREWOOD The undersigned certify that they have lav,-fully executed this contract on behalf of the Governmental Unit as required by applicable charter provisions, resolutions or ordinances. Bv: Title Date Bv: Title Date MnDOT Contract No: 04597 DEPARTMENT OF TRANSPORTATION Recommended for Approval: Bv: (District Engineer) Date: Approved: Bv: (State Design Engineer) Date: COMMISSIONER OF ADMINISTRATION Bv: (With delegated authority) Date: INCLUDE COPY OF RESOLUTION APPROVING THE AGREEMENT AND AUTHORIZING ITS EXECUTION. -7- CITY OF EXCELSIOR RESOLUTION IT IS RESOLVED that the City of Excelsior enter into MnDOT Agreement No. 04597 with the State of Minnesota, Department of Transportation for the following purposes: To participate in the power, operation and maintenance of the new Signal System and EVP System, on Trunk Highvmy No. 7 at County State Aid Highway No. 19 (Oak Street) within the corporate City limits of Excelsior and Shorev,00d, under State Project No. 2706 -225. IT IS FURTHER RESOLVED that the (Title) amendments to the Agreement. and the (Title) are authorized to execute the Agreement and any CERTIFICATION I certify that the above Resolution is an accurate copy of the Resolution adopted by the Council of the City of Excelsior at an authorized meeting held on the day of , 2014, as shown by the minutes of the meeting in my possession. Subscribed and sworn to before me this day of , 2014 Notary Public My Commission Expires (Signature) (Ttipe or Print Name) (Title) CITY OF SHOREWOOD RESOLUTION IT IS RESOLVED that the City of Shorewood enter into MnDOT Agreement No. 04597 with the State of Minnesota, Department of Transportation for the following purposes: To participate in the power, operation and maintenance of the new Signal System and EVP System, on Trunk Highway No. 7 at County State Aid Highway No. 19 (Oak Street) within the corporate City limits of Excelsior and Shorewood, under State Project No. 2706 -225. IT IS FURTHER RESOLVED that the (Title) amendments to the Agreement. and the (Title) are authorized to execute the Agreement and any CERTIFICATION I certify that the above Resolution is an accurate copy of the Resolution adopted by the Council of the City of Shorewood at an authorized meeting held on the day of , 2014, as shown by the minutes of the meeting in my possession. Subscribed and sworn to before me this day of , 2014 Notary Public My Commission Expires (Signature) (Ttipe or Print Name) (Title) #3E MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Requests for Water Connections Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Reviewed by: Patti Nelgesen Attachments: Zenk Resolution /Water Connection Agreement NSP (Xcel Energy) Resolution /Water Connection Agreement Mahling Resolution /Water Connection Agreement Policy Consideration: Should the City allow three properties in Shorewood to connect to adjoining cities' water systems? Background: The City has received requests from three property owners to connect to adjoining cities' water systems, two for the Tonka Bay system, and one for the Excelsior system. The first is a request by Ron Zenk, who is building a new home at 5435 Timber Lane. This property was approved for the extension years ago, but was never connected. The second request comes from Northern States Power (Xcel Energy) for their facility on County Road 19, just south of the LRTTrail. NSP is building two new accessory buildings and extending water from the Tonka Bay system is less expensive than running another line from Shorewood. They currently use Shorewood water for daily use. The Tonka Bay extension would be limited to fire suppression for the two new buildings. Finally, Gerhardt Mahling is building a new home at 23425 Academy Avenue. The Excelsior water system runs past the property and Mr. Mahling has requested a connection to the system. The process for these requests involves the applicants entering into a water connection agreement with Shorewood. The City then passes the formal requests to the respective adjoining communities. Resolutions and water connection agreements to that effect are attached for your consideration. Financial or Budget Considerations: The applicants are required to cover all costs associated with connecting to the adjoining water systems. Also, the water connection agreements include provisions that state they will connect to the Shorewood water system, if it is ever extended to their properties, and pay any assessment associated therewith. As mentioned, the Xcel site is already connected to Shorewood water. There are no plans to extend Shorewood water to the other two properties. Options: Approve the respective resolutions and the agreements attached thereto; deny the requests; or approve the request with modified connection agreements. Recommendation / Action Requested: Staff recommends approval of the attached resolutions and the agreements attached thereto. Next Steps and Timelines: The resolutions will be forwarded to Tonka Bay and Excelsior. Connection to Vision / Mission: Quality public services Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. A RESOLUTION PERMITTING A SHOREWOOD PROPERTY OWNER TO CONNECT TO THE TONKA BAY MUNICIPAL WATER SYSTEM WHEREAS, Ronald Zenk (Owner) owns real property within the City of Shorewood; and WHEREAS, the City of Shorewood owns a municipal water system which does not presently serve the owner's property; and WHEREAS, Owner is desirous of connecting to the Tonka Bay Municipal Water System; and WHEREAS, Owner has executed an agreement with the City of Shorewood specifically waiving any claims or defenses to a future assessment for water by the City of Shorewood. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood: 1. That the Mayor and City Clerk are hereby authorized to execute the Water Agreement attached hereto as Exhibit A on behalf of the City Council. 2. That said Water Agreement be filed with the City Clerk for fiiture reference in the event that Shorewood extends water service into Owner's property. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk WATER CONNECTION AGREEMENT THIS AGREEMENT, made this day of , 2014, by and between the CITY OF SHOREWOOD, a municipal corporation, (the "City ") and Ronald L. Zenk, (the "Applicant "). WHEREAS, the Applicant has an interest in certain real property (the "Subject Property ") located in the City of Shorewood at 5435 Timber Lane, legally described as: "Lot 2, Timber Lane, Hennepin County, Minnesota "; and WHEREAS, the City owns a municipal water system which does not presently serve the Subject Property; and WHEREAS, the Applicant desires to interconnect with the Tonka Bay Municipal Water System and pay to the City of Tonka Bay any connection charge therefor; and WHEREAS, the City is willing to permit the Applicant to connect to the Tonka Bay Municipal Water System provided that the Applicant agrees to the provisions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: I . The Applicant shall have the right to interconnect with the Tonka Bay Municipal Water System and pay to the City of Tonka Bay any connection charge therefor. 2. All work involved in such interconnection will be done according to City specifications and under City supervision and all expenses and costs connected therewith will be paid by the Applicant. 3. In the event that City extends the Shorewood municipal water system to serve the Subject Property at some time in the fiiture, the Applicant agrees to pay any assessment in connection therewith on the same basis as all other properties assessed at that time, and the Applicant herewith specifically agrees to waive any claims or defenses to said assessment based upon a theory of no benefit because of the water connection allowed herein. 4. It is fiirther agreed by and between the parties that this Agreement shall run with the land and shall benefit and be binding upon their respective legal representatives, successors and assigns. 5. That the Applicant record this Agreement with the Hennepin County Recorder or Registrar of Title within thirty (30) days of Tonka Bay's approval of the connection. Exhibit A IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. APPLICANT CITY OF SHOREWOOD Ronald L. Zenk, Applicant Scott Zerby, Mayor Jean Panchyshyn, City Clerk STATE OF MINNESOTA SS. COUNTY OF HENNEPIN On this day of , 2014, before me, a Notary Public within and for said County, personally appeared Scott Zerby and Jean Panchyshyn to me personally known, who. being each by me duly sworn, did say that they are respectively the Mayor and City Clerk of the municipal corporation named in the foregoing instrument, and that said instrument was signed and sealed on behalf of said corporation by authority of its City Council, and said City Mayor and City Clerk acknowledged said instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA SS. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of , 2014, by Ronald L. Zenk. Notary Public CITY OF SHOREWOOD RESOLUTION NO. A RESOLUTION PERMITTING A SHOREWOOD PROPERTY OWNER TO CONNECT TO THE TONKA BAY MUNICIPAL WATER SYSTEM WHEREAS, Northern States Power Company (Owner) owns real property within the City of Shorewood; and WHEREAS, the City of Shorewood owns a municipal water system which presently serve the owner's property for its primary water supply; and WHEREAS, Owner needs to provide a fire suppression system for its property; and WHEREAS, the proximity of the Tonka Bay Municipal Water System at the north boundary of the property is the most practical point of connection for the fire suppression system; and WHEREAS, Owner is desirous of connecting to the Tonka Bay Municipal Water System; and WHEREAS, Owner has executed an agreement with the City of Shorewood specifying that interconnection with the Tonka Bay Municipal Water System is exclusively for the purpose of providing a fire suppression system to the property and that the Owner will continue to use the Shorewood Municipal Water System as its primary source of water supply. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood: I . That the Mayor and City Clerk are hereby authorized to execute the Water Agreement attached hereto as Exhibit A on behalf of the City Council. 2. That the Applicant record the Agreement with the Hennepin County Recorder or Registrar of Title within thirty (30) days of Tonka Bay's approval of the connection. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 2-1 day of June, 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk WATER CONNECTION AGREEMENT THIS AGREEMENT, made this day of , 2014, by and between the CITY OF SHOREWOOD, a municipal corporation, (the "City ") and Northern States Power Company (a.k.a. Xcel Energy), (the "Applicant "). WHEREAS, the Applicant has an interest in certain real property (the "Subject Property ") located in the City of Shorewood at 5505 County Road 19, legally described on Exhibit A, attached hereto and made a part hereof, and WHEREAS, the City owns a municipal water system which presently serves the Subject Property for its primary water supply; and WHEREAS, the Applicant needs to provide a system for fire suppression to the Subject Property and has determined the that proximity of the Tonka Bay water main at the north boundary of the site to be the most practical means to supply water for the fire suppression system; and WHEREAS, the Applicant desires to interconnect with the Tonka Bay Municipal Water System for the exclusive purpose of providing fire suppression for the Subject Property, and pay to the City of Tonka Bay any connection charge therefor; and WHEREAS, the City is willing to permit the Applicant to connect to the Tonka Bay Municipal Water System provided that the Applicant agrees to the provisions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: 1. The Applicant shall have the right to interconnect with the Tonka Bay Municipal Water System and pay to the City of Tonka Bay any connection charge therefor. 2. All work involved in such interconnection will be done according to City specifications and under City supervision and all expenses and costs connected therewith will be paid by the Applicant. 3. It is agreed by and between the parties that the interconnection with the Tonka Bay Municipal Water System is exclusively for the purpose of providing a fire suppression system to the Subject Property and the Applicant shall continue to use the Shorewood Municipal Water System as its primary source of water supply. 4. It is further agreed by and between the parties that this Agreement shall run with the land and shall benefit and be binding upon their respective legal representatives, successors and assigns. 5. That the Applicant record this Agreement with the Hennepin County Recorder or Registrar of Title within thirty (30) days of Tonka Bay's approval of the connection. Exhibit A IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. APPLICANT CITY OF SHOREWOOD Northern States Power Co., Applicant Scott Zerby, Mayor IM Its: Jean Panchyshyn, City Clerk STATE OF MINNESOTA SS. COUNTY OF HENNEPIN On this day of , 2014, before me, a Notary Public within and for said County, personally appeared Scott Zerby and Jean Panchyshyn to me personally known, who. being each by me duly sworn, did say that they are respectively the Mayor and City Clerk of the municipal corporation named in the foregoing instrument, and that said instrument was signed and sealed on behalf of said corporation by authority of its City Council, and said City Mayor and City Clerk acknowledged said instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA SS. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of , 2014, by , Northern States Power Company. Notary Public LEGAL DESCRIPTION: The following legal description is as shown on First American Title Insurance Company Commitment File No. NCS- 56330 -MPLS with an commitment date of September 13, 2010. Parcel A: Lot 5, AUDITOR'S SUBDIVISION NUMBER 133, except that part thereof that lies southerly of the - following described line: Beginning at a point of the east line of said Lot 5, distant 518.85 feet south of the northeast corner thereof; thence southwesterly, deflecting 36 degrees 30 minutes, measured from South to West a distance of 144.46 feet; thence westerly deflecting 27degrees 00 minutes, a distance of 34.65 feet, more of less, to the northeasterly line of County Road No. 19 and there terminating. (Abstract) Parcel B: That part of the North Half of the Northeast Quarter of Section 33, Township 117 North, Range 23 West of the Fifth Principal Meridian, bounded and described as follows; Beginning at the northeast corner of the following described tract: The West 200 feet, measured at right angles to the west line, of that part of Tract A, Registered Land Survey No. 482, lying northerly of a line drawn easterly from a point on the west line of said Tract A, said point being 100 feet southerly < of the northwest corner of said Tract A, to a point on the east line of said West 200 feet, distant 100 feet southerly of the northeast corner of said west 200 feet; thence northerly along the northerly extension of the easterly line of the above described tract to a point distant 25 feet southerly, measured radially, from the center line of the main track of the Chicago and Northwestern Transportation Company (formerly the Minneapolis and St. Louis Railway Company), as said main track is now located; thence westerly parallel and 25 feet southerly of said main track centerline to the easterly line of Hennepin County Highway No. 19; thence southerly along the easterly line of said County Highway to an iron monument on the easterly line of said County Highway, distant 50 feet southerly, measure at right angles, from the center line of said main track; thence Easterly along the southerly right of way line of the said Chicago and North Western Transportation Company to a Judicial Land Monument located at the northwesterly corner of Tract A, Registered Land Survey No 482; thence easterly along the northerly line of said Tract A to the point of beginning. (Abstract). Parcel C: The West 200 feet, measured at right angles to the West line, of that part of Tract A, Registered Land Survey No. 482, County of Hennepin, lying Northerly of a line drawn Easterly from a point on the West line of said Tract A, said point being 100 feet Southerly of the Northwest corner of said Tract A, to a point on the East line of said West 200 feet, distant 100 feet Southerly of the Northeast corner of said West 200 feet. (Torrens) Exhibit A CITY OF SHOREWOOD RESOLUTION NO. A RESOLUTION PERMITTING A SHOREWOOD PROPERTY OWNER TO CONNECT TO THE EXCELSIOR MUNICIPAL WATER SYSTEM WHEREAS, Gerhardt Mahling and Ping Chen (Owners) own real property within the City of Shorewood; and WHEREAS, the City of Shorewood owns a municipal water system which does not presently serve the owners' property; and WHEREAS, Owners are desirous of connecting to the Excelsior Municipal Water System; and WHEREAS, Owners have executed an agreement with the City of Shorewood specifically waiving any claims or defenses to a future assessment for water by the City of Shorewood. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood: 1. That the Mayor and City Clerk are hereby authorized to execute the Water Agreement attached hereto as Exhibit A on behalf of the City Council. 2. That said Water Agreement be filed with the City Clerk for fiiture reference in the event that Shorewood extends water service into Owners' property. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk WATER CONNECTION AGREEMENT THIS AGREEMENT, made this day of , 2014, by and between the CITY OF SHOREWOOD, a municipal corporation, (the "City ") and Ping Chen and Gerhardt Mahling, (the "Applicants "). WHEREAS, Applicants have an interest in certain real property (the "Subject Property ") located in the City of Shorewood at 23425 Academy Avenue, legally described as: "Lot 2, Block 1, James Hill, Hennepin County, Minnesota "; and WHEREAS, the City owns a municipal water system which does not presently serve the Subject Property; and WHEREAS, the Applicants desire to interconnect with the Excelsior Municipal Water System and pay to the City of Excelsior a connection charge therefor; and WHEREAS, the City is willing to permit Applicants to connect to the Excelsior Municipal Water System provided that Applicants agree to the provisions contained herein. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: I . Applicants shall have the right to interconnect with the Excelsior Municipal Water System and pay to the City of Excelsior a connection charge therefor. 2. All work involved in such interconnection will be done according to City specifications and under City supervision and all expenses and costs connected therewith will be paid by Applicants. 3. In the event that City extends the Shorewood municipal water system to serve the Subject Property at some time in the fiiture, Applicants agree to pay any assessment in connection therewith on the same basis as all other properties assessed at that time, and Applicants herewith specifically agree to waive any claims or defenses to said assessment based upon a theory of no benefit because of the water connection allowed herein. 4. It is fiirther agreed by and between the parties that this Agreement shall run with the land and shall benefit and be binding upon their respective legal representatives, successors and assigns. 5. That the Applicants record this Agreement with the Hennepin County Recorder or Registrar of Title within thirty (30) days of Excelsior's approval of the connection. Exhibit A IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. APPLICANTS Ping Chen Gerhardt Mahling STATE OF MINNESOTA SS. COUNTY OF HENNEPIN CITY OF SHOREWOOD Scott Zerby, Mayor Jean Panchyshyn, City Clerk On this day of , 2014, before me, a Notary Public within and for said County, personally appeared Scott Zerby and Jean Panchyshyn to me personally known, who. being each by me duly sworn, did say that they are respectively the Mayor and City Clerk of the municipal corporation named in the foregoing instrument, and that said instrument was signed and sealed on behalf of said corporation by authority of its City Council, and said City Mayor and City Clerk acknowledged said instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA SS. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of , 2014, by Ping Chen and Gerhardt Mahling. Notary Public #3F MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Resolution Accepting Plans, Specifications and Authorizing Advertisement for Bids for the 2014 Seal Coat Project, City Project 14 -05. Meeting Date: 6/23/2014 Prepared by: Paul Hornby Reviewed by: Attachments: Resolution, Location Map Background: The City annually provides for maintenance of City Streets as part of the Street Reconstruction Fund as a seal coating project. Streets scheduled for the 2014 Seal Coat Project are listed below and illustrated on the attached map. 62nd Street, Afton Road, Arbor Creek Lane, Beverly Drive, Boulder Ridge Drive, Blue Ridge Lane, Brentridge Drive, Brynmawr Place, Cajed Lane, Cathcart Drive, Church Road, Edgewood Road, Elmridge Circle, Glen Road, Grant Lorenz Road, Harding Avenue, Harding Lane, Howards Point Road, Kathleen Court, Kelsey Drive, Mallard Point, Maple Avenue, Maple Ridge Lane, Marsh Point Circle, Marsh Point Court, Marsh Point Drive, Noble Road, Oak Ridge Circle, Peach Circle, Pine Bend, Smithtown Circle, Smithtown Lane, Smithtown Road (west of the LRT Trail), Smithtown Way, Strawberry Court, Strawberry lane, Teal Circle, Virginia Cove, Wedgewood Drive, Woodside lane, and Woodside Road. The attached Resolution approves the plans and specifications for such services and authorizes the advertisement for bids. Financial or Budget Considerations: The Capital Improvement Plan budget in the Street Reconstruction Fund is $270,000 for the 2014 Project. Options: 1. Approve the resolution accepting Plans, Specifications and Authorizing Advertisement for Bids for the 2014 Seal Coat Project, City Project 14 -05. 2. Direct staff to modify the roadways designated for seal coating. 3. Do nothing. Recommendation / Action Requested: Staff recommends approval of the Resolution that approves the plans and specifications for the 2014 Seal Coat Project, and authorizes advertisement for bids. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION APPROVING PLANS, SPECIFICATIONS AND AUTHORIZING ADVERTISEMENTS FOR BIDS FOR 2014 SEAL COAT PROJECT CITY PROJECT 14 -05 WHEREAS, the City of Shorewood designates $270,000 for seal coating; and WHEREAS, the Pavement Management Plan identifies streets within the City that need maintenance by seal coating; and WHEREAS, the City Engineer has prepared Specifications for the 2014 Seal Coat Project, City Project 14 -05, in accordance with the Pavement Management Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: The Plans and Specifications were prepared by the City Engineer for such improvement. Said Plans and Specifications are hereby approved and shall be filed with the City Cleric. 2. The City Cleric shall prepare and cause to be inserted in the official paper and in Finance - Commerce an advertisement for bids, upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for 2 weeks, shall specify the work to be done, shall state that bids will be opened and considered by the Council at a regularly scheduled City Council meeting, and that no bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the Clerk for 5 percent of the amount of each bid. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 231"' day of June, 2014. ATTFST- Jean Panchyshyn, City Clerk Scott Zerby, Mayor #3H MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title/ Subject: Local Performance Measures Meeting Date: 6/23/14 Prepared by: Bruce DeJong, Finance Director Reviewed by: Jean Panchyshyn, City Clerk Policy Consideration: Should the City participate in the Local Performance Measure program? Background: The Council on Local Results and Innovation was created by the Legislature to set benchmarks for city and county operations. The group adopted measures which are relatively easy to get using a citizen survey. The legislation comes with two incentives to participate. There is an appropriation for participants equal to 14 cents per capita or about $1,000. The other incentive is to exempt participating entities from levy limits. Fortunately, it does not look like there will be any levy limits for the 2015 budget year. The program does not require us to levy any more or less than whatever the City Council decides during budget deliberations. We may need to think about setting up a new survey to validate results as our previous survey information is getting dated. I do believe that a Survey Monkey -type survey run through our own web site and email contact list can continue to qualify for the program. Financial or Budget Considerations: Adoption of this resolution will allow Shorewood to receive approximately $1000 in state aid in 2015. Options: The City Council may choose to: 1. Decline to participate in the program; 2. Adopt the attached resolution to participate. Recommendation / Action Requested: Staff recommends the City Council adopt the resolution as submitted. Next Steps and Timelines: This resolution will be transmitted to the Office of State Auditor. Connection to Vision / Mission: This program contributes to sound financial management. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION ADOPTING PERFORMANCE MEASURES WHEREAS, the Minnesota Legislature created a Council on Local Results and Innovation ; and WHEREAS, benefits to the City of Shorewood for participation in the Minnesota Council on Local Results and Innovation's comprehensive performance measurement program are outlined in MS 6.91 and include eligibility for a reimbursement as set by State statute; and WHEREAS, The City Council of Shorewood has adopted and implemented at leastl0 of the performance measures, as developed by the Council on Local Results and Innovation, and a system to use this information to help plan, budget, manage and evaluate programs and processes for optimal future outcomes; and WHEREAS, the City of Shorewood desires to participate in the program; NOW THEREFORE, BE IT RESOLVED, that the City of Shorewood will continue to report the results of the performance measures to its citizenry by the end of the year through publication, direct mailing, posting on the city's web site, or through a public hearing at which the budget and levy will be discussed and public input allowed. BE IT FURTHER RESOLVED, The City of Shorewood will submit to the Office of the State Auditor the actual results of the performance measures adopted by the city /county. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014. ATTEST: Jean Panchyshyn, City Clerk Scott Zerby, Mayor *Lke�e!4 �1 City of Shorewood Council Meeting Item Title / Subject: Deer Management Program — Approve Hunt Dates Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Attachments: None #31 MEETING TYPE Regular Meeting Policy Consideration: Based on the informal resident survey relative to the Deer Management Program, there appeared to be consensus on the Council to continue the program for 2014. What remains is to determine the dates for this year's hunt. Note that we are proposing four weekends for this season. Background: Staff discussed this year's program with representatives of MBRB to discuss dates for this year's removal efforts. Given the lower numbers of deer observed this year, we are proposing to go back to four weekends as follow: 1 3 -5 October 2 17 -19 October 3 7 -9 November 4 21 -23 November Financial or Budget Considerations: The MBRB provides its services free of charge. To date we have used existing staff time to manage the program. Approximately $1000 has been budgeted for the aerial survey conducted in February. Options: Approve the dates; change the dates; or cancel the removal effort. Recommendation / Action Requested: Staff suggests that all four dates be approved. In light of comments received in our deer program survey, there is considerable interest in maintaining the management program. Once again the hunts will be conducted over three days — Friday through Sunday. Next Steps and Timelines: We continue to look for additional suitable hunt sites. Permission slips will go out in late August. Connection to Vision / Mission: Maintaining a healthy environment. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 #5A and ED MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Busch — Minor Subdivision /Combination and Vacation of Drainage and Utility Easements Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Attachments: Planning Director's Memorandum Draft Resolution — Proposed Division /Combination Draft Resolution — D & U Easement Vacation Policy Consideration: Should the City approve a minor subdivision and combination (lot line rearrangement) for Darin Busch, and vacation of drainage and utility easements associated therewith? Background: Darin Busch, 5360 Vine Hill Road, has arranged to purchase 20 feet of his neighbor's property (see attached Planning Director's Memorandum). As part of the division /combination, the old drainage and utility easements along the existing lot line will be vacated in exchange for new easements along the new common lot line. The Planning Commission voted unanimously to recommend approval of the division /combination, as well as the easement vacation. Resolutions to that effect are included herein for your consideration. A public hearing has been scheduled for Monday night to consider the easement vacation. Financial or Budget Considerations: None. The application fees cover the City's expense in processing the request. Since there are no new lots being created, there are no park dedication fees or local sanitary sewer access charges. Options: Approve the division /combination and the easement vacation; approve the division /combination, but not the easement vacation; or deny the whole request. Recommendation / Action Requested: Staff recommends approval of the subdivision /combination and the easement vacation. The resolution approving the division /combination includes dedication of new drainage and utility easements along the new common lot line. The correct order of approval would be the division /combination resolution first, then the vacation resolution. Next Steps and Timelines: The applicant has 30 days in which to record the two resolutions. Connection to Vision / Mission: Quality public services. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 I� ®o® ,PRINTED ON RECYCLED PAPER C) 0 N r �o CD z 0 0 M 0 jol m ■ ©1M (Ido�i -3 V, L U) L c� cn U m V_ N p�J IM aUln t it x N _D S11! m m Q , cn cn CL µ c e WON m � N \v A W a F- x U da a Exhibit A ��SITE LOCATION Busch Subdivision/Combination 8976'00' w ----------------------- A point 330 feet South of 0,40 the North line of the Southeast 1/4 of the Southeast 1/4 of the Southeast 1/4 of Section 25, Township 117, Range 23 _ __ A line parallel with the East l - " line of the Southeast 1/4 of the Southeast 1/4 of the a Southeast 1/4 of Section N h N 25, Township 117, Range 23 `* o I � I S 8926'00" E — -- 15L70 -- EASELINT FOR DRAINAGE AND.! unUTY EASEUINT PER DOG Na 6270061 41.1 � �11(A <a a F <° �1 a �9 M W I � ----------------------------------- C --------------- ------------ --------------------- EA' WTFC -G -- A,- 627-757 PROPOSED LEGAL DESCRIPTION OF RE The South 20 feet of the North 163.34 feet of following described parcel: That part of the Southeast 1/4 of the Southeas A line parallel with the Nortt a 117, Range 23, Hennepin County, Minnesota, line of the Southeast 1/4 of NORTH thereof, thence North along the East line 287. the Southeast 1/4 of the distance of 334.7 feet, thence North parallel W Southeast 1/4 of Section the North line thereof, thence West parallelw feet thereof, thence South along said West lin 25, Township 117, Range 23 beginning. I -- 334.70 -- -Fence ( EASE7./EN2; FOR 1 /0 � .t y I 10 (-r I� g e I 1 1° 131 �g I low � I� I I y I 1 =- g I $ b I � 10 I /0 a W ri1 W S 8926100' E -- 183.00 -- DOG Na 5o'O ° o f - -- EASEMENT - Fop -4 BE V�AC�A�TI - ..-AND _�F/'" S 892600' Dd- I I g I R I b I i I � I I g I � I � I � I I � I WIReG Nbl /v � I 2 I a I I I I 1 a --- - - - --- I 627D0k I ----------- ---- { PARCI '7 ------ �1LIrI�I_y� ;E PER DOG He] 6270012 ___________i . -------- W EAtSIING texm______ I I s§sl / ' ONSERV PJN�A 6270060 i I I -- -- PERDOA _ r I z I I 04S7 --- = - - - -- ------------------------------- - ----------------------------- EASE7/ENT FOR DRAINAGE AND UDCITY EASE7/ENT PER DM Na 6270 -SJ ----- o I -- 335.00 -- N 897149" W The southeast earner of the Southeast 1/4 of the —The South line of the Southeast 1/4 Southeast 1/4 Southeast 1/4 Exhibit B 25, Township 1' PROPOSED DIVISION /COMBINATION ° 1 I I 2 f - D- R- A -F -T- RESOLUTION NO. A RESOLUTION APPROVING SUBDIVISION AND COMBINATION OF REAL PROPERTY WHEREAS, Darin Busch and Philip Dritsas are the owners of certain real properties in the City of Shorewood, County of Hennepin, State of Minnesota, legally described in Exhibit A, attached hereto and made a part hereof, and WHEREAS, Darin Busch (Applicant), has applied to the City for a subdivision and combination of said real properties into two parcels legally described in Exhibit B, attached hereto and made a part hereof, and WHEREAS, the subdivision and combination requested by the Applicant complies in all respects with the Shorewood Zoning Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: 1. The real properties legally described in Exhibit A be divided into two parcels, legally described in Exhibit B, attached hereto and made a part hereof. 2. The City Clerk furnish the Applicant with a certified copy of this resolution for recording purposes. 3. The Applicant records this resolution together with the drainage and utility easements, legally described in Exhibit C, attached, with the Hennepin County Recorder or Registrar of Titles within thirty (30) days of the date of the certification of this resolution. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk Existing Legal Descriptions Busch Parcel: The North 133.34 feet of the East 183.00 feet of the following described parcel: That part of the Southeast 1/4 of the Southeast 1/4 of the Southeast 1/4 of Section 25, Township 117, Range 23, Hennepin County, Minnesota, described as beginning at the Southeast corner thereof, thence North along the East line 287.3 feet, thence West parallel with the North line a distance of 334.7 feet, thence North parallel with the East line thereof to a point 330 feet South of the North line thereof, thence West parallel with the North line to the East line of the West 325 feet thereof, thence South along said West line to the South line thereof, thence East to point of beginning. Dritsas Parcel: That part of the Southeast 1/4 of the Southeast 1/4 of the Southeast 1/4 of Section 25, Township 117, Range 23, Hennepin County, Minnesota, described as beginning at the Southeast corner thereof, thence North along the East line 287.3 feet, thence West parallel with the North line a distance of 334.7 feet, thence North parallel with the East line thereof to a point 330 feet South of the North line thereof, thence West parallel with the North line to the East line of the West 325 feet thereof, thence South along said West line to the South line thereof, thence East to point of beginning. Except the North 133.34 feet of the East 183.00 feet thereof. Exhibit A Proposed Legal Descriptions Busch Parcel: The North 15334 feet of the East 183.00 feet of the following described parcel: That part of the Southeast' /4 ofthe Southeast' /4 ofthe Southeast' /4 of Section 25, Township 117, Range 23, Hennepin County, Minnesota, described as beginning at the Southeast corner thereof, thence North along the East line 287.3 feet, thence West parallel with the North line a distance of 334.7 feet, thence North parallel with the East line thereof to a point 330 feet South of the North line thereof, thence West parallel with the North line to the East line of the West 325 feet thereof, thence South along said West line to the South line thereof, thence East to point of beginning. Larsen Parcel: That part of the Southeast' /4 ofthe Southeast' /4 ofthe Southeast' /4 of Section 25, Township 117, Range 23, Hennepin County, Minnesota, described as beginning at the Southeast corner thereof, thence North along the East line 287.3 feet, thence West parallel with the North line a distance of 334.7 feet, thence North parallel with the East line thereof to a point 330 feet South of the North line thereof, thence West parallel with the North line to the East line of the West 325 feet thereof, thence South along said West line to the South line thereof, thence East to point of beginning. Except the North 15334 feet of the East 183.00 feet thereof. Exhibit B Proposed Drainage and Utility Easement - Legal Description The South 20 feet of the North 163.34 feet of the West 160 feet of the East 193 feet of the following described parcel: That part of the Southeast 1/4 of the Southeast 1/4 of the Southeast 1/4 of Section 25, Township 117, Range 23, Hennepin County, Minnesota, described as beginning at the Southeast comer thereof, thence North along the East line 287.3 feet, thence West parallel with the North line a distance of 334.7 feet, thence North parallel with the East line thereof to a point 330 feet South of the North line thereof, thence West parallel with the North line to the East line of the West 325 feet thereof, thence South along said West line to the South line thereof, thence East to point of beginning. Exhibit C CITY OF SHOREWOOD RESOLUTION NO. RESOLUTION VACATING CERTAIN DRAINAGE AND UTILITY EASEMENTS WHEREAS, Notice of Public Hearing on the proposed vacation of certain drainage and utility easements in the City of Shorewood, Hennepin County, Minnesota, was published in the Excelsior /Shorewood edition of the SUN-SAILOR NEWSPAPER on the 12th and 19th days of June 2014 and in the LAKER NEWSPAPER on the 14th and 21" days of June 2014; and WHEREAS, said Notice of Public Hearing was posted in three (3) locations in the City of Shorewood; and WHEREAS, the Council of the City of Shorewood heard all interested parties on the question of vacation at a Public Hearing on the 23rd day of June 2014, in the Council Chambers at the City Hall. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota, that the drainage and utility easements described in Exhibit A, attached, be and hereby are vacated. BE IT FURTHER RESOLVED, the Applicants shall record this resolution contemporaneously with the resolution approving a minor subdivision and combination, dated 23 June 2014, with the Hennepin County Recorder or Registrar of Titles within thirty (30) days of the date of the certification of this resolution. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk Description of easement to be vacated: The South 20 feet of the North 143.34 feet of the West 140 feet of the East 173 feet of the following described parcel: That part of the Southeast 1/4 of the Southeast 1/4 of the Southeast 1/4 of Section 24, Township 117, Range 23, Hennepin County, Minnesota, described as beginning at the Southeast corner thereof, thence North along the East line 287.3 feet, thence West parallel with the North Line a distance of 334.7 feet, thence North parallel with the East line thereof to a point 330 feet South of the North line thereof, thence West parallel with the North line to the East line of the West 325 feet thereof, thence South along said West line to the South line thereof, thence East to point of beginning. Exhibit A #6A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Accepting the 2013 Comprehensive Annual Financial Report Meeting Date: 6/23/14 Prepared by: Bruce DeJong, Finance Director Reviewed by: Bill Joynes, City Administrator Attachment: Draft Management Letter Draft Other Required Reports Draft Comprehensive Annual Financial Report Policy Consideration: Should the City Council accept the 2013 Comprehensive Annual Financial Report? Background: The 2013 audit has been completed and Andrew Berg from Abdo, Eick & Meyers, LLP will be here to present the results at the work session. The report is presented in draft form as in previous years to allow for City Council input into the final report. This audit results in an unqualified ( "clean ") opinion. The audit went much smoother this year. Staff had the resources to get reconciliations completed with assistance from KDV and accounts balanced prior to the audit despite significant time being spent on the financial system conversion. There remains one finding that more adjusting journal entries need to be performed by city staff. While some of these entries were completed by staff several were completed by the auditors. Total adjusting journal entries dropped from 30 in 2012 to 10 in 2013. These entries are primarily accruals that affect the balance sheet and have only minor impact on revenues and expenditures reported throughout the year. With the significant progress made this year, staff will be able to make all of the adjusting entries next year as the uncertainty surrounding those accounts has been cleared up. This will also allow for a clean transition of account balances and transaction history to the new software. Overall operating results for the governmental funds were positive with a decrease in net position of $100,393. This occurred despite adding $351,890 to General Fund balance in 2013. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $7,215,873, a decrease of $869,694 from 2012. This decrease is primarily the result of capital expenditures in capital project funds, which is as anticipated in both the Financial Management Plan and the information presented at the Council retreat this past winter. The enterprise fund operations were about as expected. The Water Fund had a negative year with a decrease in net position of $97,594. The Sewer Fund added $14,615 to its net position. We increased the net position in both the Recycling and Stormwater Management funds, $10,259 and $87,597 respectively. The rate study recommendations adopted by council will be in effect for the second half of this year, which should help the Sewer and Stormwater Management funds to cover their costs over the long run. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Financial or Budget Considerations: This report will be used as the basis for preparing the budget information for the City Council's consideration starting in July. Options: The City Council may choose to: 1. Accept the annual financial report as presented. Recommend changes to the report and accept the amended report. Recommendation / Action Requested: Finance Staff recommends that City Council accept the annual financial report. Next Steps and Timelines: We will use this information as a base for future budget and capital plans. Connection to Vision / Mission: This contributes to sound financial management. D - j ABDO IVY SICK & People •�' M EYER S ®I LLP G o� ® Certified Public Accountants & Consultants B � dthe Numbers ABDO w� WICK & ® I ME 1 E W LLP Certified Public Accountants & Consultants NEED DATE Management, Honorable Mayor and City Council City of Shorewood, Minnesota We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Shorewood, Minnesota (the City) for the year ended December 31, 2013 and have issued our report thereon dated NEED DATE. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 23, 2013. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting (internal control) of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City's internal control to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We consider the deficiency presented as findings 2013 -001 described on the following page to be material weakness. 5201 Eden Avenue, Suite 250 Edina, MN 55436 952.835.9090 1 Fax 952.835.3261 2013 -001 Audit adjustments Condition: During our audit, adjustments were needed to record receivables and prepaid items. Criteria: The financial statements are the responsibility of the City's management, ' therefore, the City must be able to prevent or detect a material misstatement in the financial statements. The year -end closing process needs to consider and include adjustments for all receivables and prepaid items. Cause: Unknown. Effect: The omission of this entry resulted in an understatement of the assets. Recommendation: We recommend that management review each journal entry, obtain an understanding of why the entry was necessary and modify current procedures to ensure that future corrections are not needed. Management response: The entries in question are accrual allocations of transactions entered in one fiscal year, but partially attributable to another fiscal year. The Finance Director made most of these entries for 2013 without assistance from the audit firm. The procedure for allocating the amount due has been changed to reflect the portion applicable to each year. The Finance Director will make these entries in future years. Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. We noted no instances of noncompliance with Minnesota statutes. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The requirements of GASB statement No. 61 was adopted for the year ended December 31, 2013. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements was capital asset basis and depreciation and allocation of payroll. • Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight -line method. • Allocations of gross wages and payroll benefits are approved by City Council within the City's budget and are derived from each employee's estimated time to be spent servicing the respective functions of the City. These allocations are also used in allocating accrued compensated absences payable. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit People We encountered no significant difficulties in dealing with management in performing and completing our audit. +process® -2- VOM,9 Beyondthe Numbers Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We proposed journal entries that we consider to be audit entries or corrections of management decisions. They related to adjustments needed to correct receivables, due from other governments, and prepaid items. We assisted in preparing a number of year end accounting entries. These were necessary to adjust the City's records at year end to correct ending balances. The City should establish more detailed processes and procedures to reduce the total number of audit and accounting entries. The City will receive better and timelier information if the preparation of entries is completed internally. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated NEED DATE. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Timely bank reconciliations Condition: During our audit we noted bank reconciliations were not completed timely and multiple entries were posted well after the month the transaction occurred, with many of the transactions being posted in April of 2014. Receipts for MSA maintenance and court fines were a couple of the larger items noted. We did note that these receipts were included in the monthly reporting to City Council. Criteria: Internal controls and procedures should be in place to provide reasonable assurance over the reliability of financial records and reporting. Cause: Unknown. Effect: Monthly budget reports to City Council did not agree with the City finance software. Extra reconciliations were needed to include the transactions not in the finance software. Without bank and investment reconciliations completed timely, the accuracy of monthly financial information may not be accurate and allow for errors or incomplete information to go unnoticed longer. Recommendation: We recommend bank reconciliations be completed within 15 days of month end and the City finance software be utilized for financial reporting. This will allow for more efficient process and more accurate financial information. -3- People +Process® Going Beyondthe Numbers Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Financial Position and Results of Operations Our principal observations and recommendations are summarized below. These recommendations resulted from our observations made in connection with our audit of the City's financial statements for the year ended December 31, 2013. General Fund The General fund is used to account for resources traditionally associated with government, which are not required legally or by sound principal management to be accounted for in another fund. The General fund balance increased $351,890 from 2012. The City Council budgeted for the use of $104,248 of resources. The fund balance of $3,976,358 is 72 percent of the 2014 budgeted expenditures and transfers. We recommend the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are received in June. We feel a reserve of approximately 50 percent of planned expenditures and transfers out is adequate to meet working capital and small emergency needs. The purposes and benefits of a strong fund balance are as follows: • Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the governmental fund expenditures. • The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid formulas. We also have seen the State mandate levy limits for cities over 2,500 in population. An adequate fund balance will provide a temporary buffer against those aid adjustments or levy limits. • Expenditures not anticipated at the time the annual budget was adopted may need immediate City Council action. These would include capital outlay, replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. • A strong fund balance will assist the City in maintaining, improving or obtaining its bond rating. The result will be better interest rates in future bond sales. -4- People +Process® Going Beyondthe Numbers A table summarizing the General fund balance in relation to budget follows: $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Fund Balance as a Percent of Next Year's Budget $5,547,054 $5,375,404 $5,268,884 $5,223,830 $5,367,218 72% 66% 67% 67% 68% 2009 2010 2011 2012 2013 2014 Fund Balance (Budget We have compiled a peer group average derived from information we have requested from the Office of the State Auditor for Cities of the 4th class which have populations of 2,500- 10,000. In 2011 and 2012, the average General fund balance as a percentage of expenditures was 69 percent and 76, percent, respectively. People e o Bndthe -5 - Numbers Percent General of Fund Fund Balance Budget Fund Balance to Year December 31 Year Budget Budget 2009 $ 3,555,724 2010 $ 5,375,404 66 % 2010 3,526,992 2011 5,268,884 67 2011 3,488,227 2012 5,223,830 67 2012 3,624,468 2013 5,367,218 68 2013 3,976,358 2014 5,547,054 72 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Fund Balance as a Percent of Next Year's Budget $5,547,054 $5,375,404 $5,268,884 $5,223,830 $5,367,218 72% 66% 67% 67% 68% 2009 2010 2011 2012 2013 2014 Fund Balance (Budget We have compiled a peer group average derived from information we have requested from the Office of the State Auditor for Cities of the 4th class which have populations of 2,500- 10,000. In 2011 and 2012, the average General fund balance as a percentage of expenditures was 69 percent and 76, percent, respectively. People e o Bndthe -5 - Numbers The 2013 operations are summarized as follows: Revenues Expenditures Excess of revenues over expenditures Other financing sources (uses) Sale of capital assets Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, January 1 Final Budgeted Actual Variance with Amounts Amounts Final Budget $ 5,263,970 $ 5,363,127 $ 99,157 858,402 1,041,3 58 182,956 - 317,182 317,182 (962,650) (1,006,650) (44,000) (962,650) (689,468) 273,182 (104,248) 351,890 456,138 3,624,468 3,624,468 - Fund balances, December 31 $ 3,520,220 $ 3,976,358 $ 456,138 The General fund balance increased $351,890 during the year ended December 31, 2013. More detailed information of the variances is as follows: • Revenues were $99,157 over budget. The largest revenue variance was in licenses and permits, which were over budget by $80,400. The next largest revenue variance was in interest on investments, which was under budget by $22,089. • Expenditures were $83,799 under budget. General government was over budget by $16,227. Public works was under budget by $92,789. • Other financing source was over budget due to sale of property for $317,182. People B�ndthe -6- Numbers A more detailed comparison for the last five years General fund revenues and transfers as follows: Source 2009 2010 2011 2012 2013 Percent Per of Total Capita Property taxes $ 4,703,368 $ 4,717,204 $ 4,787,195 $ 4,783,939 $ 4,764,472 89.0 % $ 641 Licenses and permits 127,883 154,113 174,119 175,087 204,600 3.8 28 Intergovernmental 66,411 69,134 72,968 76,102 76,544 1.4 10 Charges for services 41,649 42,882 30,741 61,611 50,829 0.9 7 Fines and forfeitures 52,968 55,806 52,635 66,230 59,294 1.1 8 Special assessments - 333 - - - - - Interest on investment 58,627 46,767 20,021 25,602 12,911 0.2 2 Miscellaneous 24,131 39,803 109,327 117,824 194,477 3.6 26 Transfers in 40,000 33,464 40,000 - - - - Total revenues and transfers in $ 5,115,037 $ 5,159,506 $ 51287,006 $ 51306,395 $ 51363,127 100.0 % $ 722 The sources of revenues and transfers from the past five years are presented graphically below. Property taxes have been excluded from the graph to better illustrate the fluctuation in the General fund's other revenue sources due to property taxes consisting of 89 percent in 2013. $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Revenues and Transfers (Excluding Property Taxes) 2009 2010 2011 2012 2013 t Licenses and permits f Charges for services f Fines and forfeitures --0- Interest on investments -I -Other People ,n BeyOndthe -7- Nuufibers A more detailed comparison for the last five years General fund expenditures and transfers as follows: The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group average is derived from information available on the website of the Office of the State Auditor for Cities of the 4a' class which have populations between 2,500 and 10,000. The function/program of the expenditures and transfers are presented graphically as follows: $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Expenditures and Transfers 2009 2010 2011 2012 2013 General government f Public safety f Public works —0—Transfers out —I--Other People B ""M-L-_ ndthe -g- Numbers Percent Peer Group of Per Per Program 2009 2010 2011 2012 2013 Total Capita Capita General government $ 1,384,712 $ 1,147,198 $ 1,306,948 $ 1,282,580 $ 1,249,616 23.4 % $ 168 $ 125 Public safety 1,392,139 1,392,923 1,460,664 1,445,149 1,494,633 28.1 201 218 Public works 669,578 859,069 866,413 823,234 852,667 16.0 115 106 Culture and recreation 267,407 263,928 256,601 205,542 209,112 3.9 28 54 Capital outlay 528,388 519,792 504,736 505,849 515,741 9.7 69 34 Debt service 5,425 2,959 - - - - - - Transfers out 1,019,773 1,002,369 930,409 907,800 1,006,650 18.9 135 - Total expenditures and transfers out $ 5,267,422 $ 5,188,238 $ 5,325,771 $ 5,170,154 $ 5,328,419 100.0 % $ 716 $ 537 The above chart compares the amount the City spends per capita, in comparison to a peer group. The peer group average is derived from information available on the website of the Office of the State Auditor for Cities of the 4a' class which have populations between 2,500 and 10,000. The function/program of the expenditures and transfers are presented graphically as follows: $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Expenditures and Transfers 2009 2010 2011 2012 2013 General government f Public safety f Public works —0—Transfers out —I--Other People B ""M-L-_ ndthe -g- Numbers Debt Service Funds Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than enterprise fund debt). Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Propegy taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax increments - Pledged exclusively for tax increment /economic development districts. • Capitalized interest portion of bond proceeds - After the sale of bonds, the project may not produce revenue (tax increments or special assessments) for a period of one to two years. Bonds are issued with this timing difference considered in the form of capitalized interest. • Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or Federal grants • Transfers from other funds The following summarizes the assets of each Debt Service fund with the bonds payable at year end: $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Principal and Interest Scheduled Payments 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ■ Principal ■Interest People -I- prnd-ncc B � Uthe -9- Numbers Final Cash and Total Bonds Maturity Debt Description Investments Assets Outstanding Date 2007A Public Safety Building $ 8,287 $ 3,239,602 $ 3,225,000 2023 2007B Public Safety Building (1,951) 3,354,364 3,350,000 2023 2007C Public Safety Building 784 1,177,271 1,175,000 2022 2008 Lease Revenue Bond 3,213 3,213 1,090,000 2028 Total $ 10,333 $ 7,774,450 $ 8,840,000 Total Interest Remaining $ 2,106,033 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Principal and Interest Scheduled Payments 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ■ Principal ■Interest People -I- prnd-ncc B � Uthe -9- Numbers Special Revenue Fund Special revenue funds receive revenue from specific sources and expenditures for specific purposes. The City's only special revenue fund is the Southshore Community Center fund. The Southshore Community Center operations ended the year with an operating loss of $50,482. The City transferred in $91,700 to eliminate the fund deficit. The fund has an ending fund balance of $469. Capital Projects Funds Capital projects funds account for the acquisition of capital assets or construction of major capital projects not being financed by proprietary funds. A summary of year end fund balances for all capital projects funds follows: Fund Major Street Reconstruction Trail Construction Nonmaj or Park Capital Improvement Equipment Replacement MSA Construction Community Infrastructure Total Following is some of the significant activity: Street Reconstruction fund • $714,000 of transfers in from other funds • $340,002 of expenditures Trail Construction fund • $1,476,000 of transfers in from other funds • $1,493,861 of expenditures Equipment Replacement fund • $58,500 of transfers in from other funds • $265,739 of expenditures Community Infrastructure fund • $1,476,000 of transfers out to other funds Fund Balances December 31, 2012 2013 $ 1,760,337 $ 2,143,328 (34,576) (52,437) 168,427 613,693 133,937 1,842,330 213,366 413,263 127,101 369,975 Increase (Decrease) $ 382,991 (17,861) 44,939 (200,430) (6,836) (1,472,355) $ 4,484,148 $ 3,214,596 $ (1,269,552) People B ""M-L-_ ndthe -10- Numbers Enterprise Funds Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The results of the operations in terms of cash flow and the breakdown of the cash balances for the past four years are as follows: $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Water Cash Flow 2010 2010 Receipts 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts Disbursements Disbursements Disbursements Disbursements ■ Operating costs ■Debt payments ■ Other (capital, interfund, etc.) ■Operating receipts ■ Other (bonds, connections, interest etc.) $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 2010 2011 2012 2013 Restricted ** �Unrestricted--A--Minimum target balance (following year debt service plus months of operating costs) ** Restricted cash consists of cash with fiscal agent held for the subsequent January 1 bond payment. The increase in 2013 is due to the 1/1/2014 refunding of the G. 0. Water Revenue bonds, Series 2006A. 2010 2011 2012 2013 Bonds payable $ 2,915,000 $ 2,675,000 $ 2,500,000 $ 3,540,000 The Water fund has been able to generate enough operating revenues to cover operating expenses as well as most, if not all, of the debt payments. This has contributed to an increasing cash balance. People -4- prnd-ncc -11- Bevon Uthe Numbers $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Sewer Cash Flow 2010 2010 Receipts 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts Disbursements Disbursements Disbursements Disbursements ■Operating costs ■Other (capital, interfund, etc.) ■Operating receipts ■Other (bonds, connections, interest, etc.) $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 EE Sewer Cash Balances 2010 2011 2012 2013 Unrestricted (Minimum target balance (4 months of operating costs) The cash balance remains strong; however, it has decreased slightly each of the last three years. The City should continue to monitor operations to ensure charges are sufficient to cover operating expenses, debt service and future projects. People B v ndthe -12- Numbers $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Recycling Cash Flow 2010 2010 Receipts 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts Disbursements Disbursements Disbursements Disbursements ■Operating costs ■Operating receipts ■Other (interest, etc.) Recycling Cash Balances 2010 2011 2012 2013 Unrestricted (Minimum target balance (3 months of operating costs) The majority of the Recycling fund activities is for operating receipts and disbursements. The fund maintains a healthy cash balance considering the fund has no debt or capital expenditures. We recommend the City monitor cash flows to ensure sufficient resources to cover expenses. -13- People "O Beyondthe Numbers $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Stormwater Management Utility Cash Flow 2010 2010 Receipts 2011 2011 Receipts 2012 2012 Receipts 2013 2013 Receipts Disbursements Disbursements Disbursements Disbursements ■ Operating costs ■Other (capital, interfund, etc.) ■ Operating receipts ■ Other (interest, etc.) $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Stormwater Management Utility Cash Balances 2010 2011 2012 2013 Unrestricted (Minimum target balance (4 months of operating costs) The cash balance in the fund increased $82,479 during the year. We recommend the City monitor cash flows to ensure sufficient resources to cover expenses. People B ""M-L-_ ndthe -14- Numbers Ratio Analysis The following captures a few ratios from the City's financial statements that give some additional information for trend and peer group analysis. We have compiled peer group average fund balance information from approximately 120 fourth class cities (population of 2,500 - 10,000). The peer group average is derived from information available on the website of the Office of the State Auditor. The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government - wide level. A combination of liquidity (ability to pay its most immediate obligations), solvency (ability to pay its long -term obligations), funding (comparison of financial amounts and economic indicators to measure changes in financial capacity over time) and common -size (comparison of financial data with other cities regardless of size) ratios are shown below. Ratio Calculation Source 2010 2011 2012 2013 Debt to assets Total liabilities /total assets Government -wide 31% 34% Debt service coverage Net cash provided by operations/ Enterprise funds 108% enterprise fund debt payments 90% Debt per capita Bonded debt /population Government -wide $ 1,876 $ 2,774 Taxes per capita Tax revenues /population Current expenditures per capita Governmental fund current Capital expenditures per capita Capital assets % left to depreciate - Governmental Capital assets % left to depreciate - Business -type Represents the City of Shorewo Peer Group ratio expenditures / population Governmental fund capital outlay / population Net capital assets/ gross capital assets Net capital assets/ gross capital assets od Government -wide $ 649 $ 458 Governmental funds $ 512 $ 624 Governmental funds $ 284 $ 265 30% 29% 33% 33% 91% 144% 106% 106% $ 1,758 $ 2,826 $ 648 $ 500 $ 544 $ 640 $ 199 $ 229 $ 1,643 $ 2,626 $ 651 $ 480 $ 532 $ 649 $ 168 $ 298 30% N/A 73% N/A $ 1,664 N/A $ 641 N/A $ 528 N/A $ 358 N/A Government -wide 31% 29% 27% 28% 680 64% 65% N/A Government -wide 47% 46% 44% 43% 68% 65% 63% N/A -15- People Be ondthe Numbers Debt -to- Assets Leverage Ratio (Solvency Ratio) The debt -to- assets leverage ratio is a comparison of a City's total liabilities to its total assets or the percentage of total assets that are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long -term obligations (i.e. a ratio of 50 percent would indicate half of the assets are financed with outstanding debt). Debt Service Coverage Ratio (Solvency Ratio) The debt coverage ratio is a comparison of cash generated by operations to total debt service payments (principal and interest) of enterprise funds. This ratio indicates if there are sufficient cash flows from operations to meet debt service obligations. Except in cases where other nonoperating revenues (i.e. taxes, assessments, transfers from other funds, etc.) are used to fund debt service payments, an acceptable ratio would be above 100 percent. Bonded Debt per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total bonded debt by the population of the City and represents the amount of bonded debt obligation for each citizen of the City at the end of the year. The higher the amount, the more resources are needed in the future to retire these obligations through taxes, assessments or user fees. The increase in 2007 is due to the refunding bonds that were issued in 2007 to refund bonds in 2009. Taxes per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total tax revenues by the population of the City and represents the amount of taxes for each citizen of the City for the year. The higher this amount is, the more reliant the City is on taxes to fund its operations. Current Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total current governmental expenditures by the population of the City and represents the amount of governmental expenditure for each citizen of the City during the year. Since this is generally based on ongoing expenditures, we would expect consistent annual per capita results. Capital Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total governmental capital outlay expenditures by the population of the City and represents the amount of capital expenditure for each citizen of the City during the year. Since projects are not always recurring, the per capita amount will fluctuate from year to year. Capital Assets Percentage (Common -size Ratio) This percentage represents the percent of governmental or business -type capital assets that are left to be depreciated. The lower this percentage, the older the City's capital assets are and may need major repairs or replacements in the near future. A higher percentage may indicate newer assets being constructed or purchased and may coincide with higher debt ratios or bonded debt per capita. -16- People +Process® Going Beyondthe Numbers Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: (1) GASB Statement No. 67 - The Financial Reporting for Pension Plans- an Amendment to GASB Statement No. 25 Summary The objective of this Statement is to improve financial reporting by state and local governmental pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision - useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces the requirements of Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 50, Pension Disclosures, as they relate to pension plans that are administered through trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements of Statements No. 25 and No. 50 remain applicable to pension plans that are not administered through trusts covered by the scope of this Statement and to defined contribution plans that provide postemployment benefits other than pensions. This Statement is effective for financial statements for fiscal years beginning after June 15, 2013. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by the pension plans that are within its scope. The new information will enhance the decision - usefulness of the financial reports of these pension plans, their value for assessing accountability, and their transparency by providing information about measures of net pension liabilities and explanations of how and why those liabilities changed from year to year. The net pension liability information, including ratios, will offer an up -to -date indication of the extent to which the total pension liability is covered by the fiduciary net position of the pension plan. The comparability of the reported information for similar types of pension plans will be improved by the changes related to the attribution method used to determine the total pension liability. The contribution schedule will provide measures to evaluate decisions related to the assessment of contribution rates in comparison to actuarially determined rates, when such rates are determined. In that circumstance, it also will provide information about whether employers and nonemployer contributing entities, if applicable, are keeping pace with actuarially determined contribution measures. In addition, new information about rates of return on pension plan investments will inform financial report users about the effects of market conditions on the pension plan's assets over time and provide information for users to assess the relative success of the pension plan's investment strategy and the relative contribution that investment earnings provide to the pension plan's ability to pay benefits to plan members when they come due. GASB Statement No. 68 - The Accounting and Financial Reporting of Pensions- an Amendment of GASB Statement No. 27 The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision - useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this Statement. This Statement is effective for fiscal years beginning after June 15, 2014. Earlier application is encouraged. -17- People +Process® Going Beyondthe Numbers Future Accounting Standard Changes - Continued How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve the decision - usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision - usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. GASB Statement No. 69 - Government Combinations and Disposals of Government Operations Summary This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations include a variety of transactions referred to as mergers, acquisitions, and transfers of operations. The distinction between a government merger and a government acquisition is based upon whether an exchange of significant consideration is present within the combination transaction. Government mergers include combinations of legally separate entities without the exchange of significant consideration. This Statement requires the use of carrying values to measure the assets and liabilities in a government merger. Conversely, government acquisitions are transactions in which a government acquires another entity, or its operations, in exchange for significant consideration. This Statement requires measurements of assets acquired and liabilities assumed generally to be based upon their acquisition values. This Statement also provides guidance for transfers of operations that do not constitute entire legally separate entities and in which no significant consideration is exchanged. This Statement defines the term operations for purposes of determining the applicability of this Statement and requires the use of carrying values to measure the assets and liabilities in a transfer of operations. A disposal of a government's operations results in the removal of specific activities of a government. This Statement provides accounting and financial reporting guidance for disposals of government operations that have been transferred or sold. This Statement requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. The requirements of this Statement are effective for government combinations and disposals of government operations occurring in financial reporting periods beginning after December 15, 2013, and should be applied on a prospective basis. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting Until now, governments have accounted for mergers, acquisitions, and transfers of operations by analogizing to accounting and financial reporting guidance intended for the business environment, generally APB Opinion No. 16, Business Combinations. This Statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This Statement also improves the decision usefulness of financial reporting by requiring that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. GASB Statement No. 70 - Accounting and Financial Reporting for Nonexchange Financial Guarantees Summary Some governments extend financial guarantees for the obligations of another government, a not - for - profit organization, a private entity, or individual without directly receiving equal or approximately equal value in exchange (a nonexchange transaction). As a part of this nonexchange financial guarantee, a government commits to indemnify the holder of the obligation if the entity or individual that issued the obligation does not fulfill its payment requirements. Also, some governments issue obligations that are guaranteed by other entities in a nonexchange transaction. The objective of this Statement is to improve accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees. This Statement requires a government that extends a nonexchange financial guarantee to recognize a liability when qualitative factors and historical data, if any, indicate that it is more likely than not that the government will be required to make a payment on the guarantee. The amount of the liability to be recognized should be the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. When there People is no best estimate but a range of the estimated future outflows can be established, the amount of the liability to +process® be recognized should be the discounted present value of the minimum amount within the range. r.� Vv1Tlg Beyondthe -18- Numbers Future Accounting Standard Changes - Continued This Statement requires a government that has issued an obligation guaranteed in a nonexchange transaction to report the obligation until legally released as an obligor. This Statement also requires a government that is required to repay a guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed obligation to continue to recognize a liability until legally released as an obligor. When a government is released as an obligor, the government should recognize revenue as a result of being relieved of the obligation. This Statement also provides additional guidance for intra - entity nonexchange financial guarantees involving blended component units. This Statement specifies the information required to be disclosed by governments that extend nonexchange financial guarantees. In addition, this Statement requires new information to be disclosed by governments that receive nonexchange financial guarantees. The provisions of this Statement are effective for reporting periods beginning after June 15, 2013. Earlier application is encouraged. Except for disclosures related to cumulative amounts paid or received in relation to a nonexchange financial guarantee, the provisions of this Statement are required to be applied retroactively. Disclosures related to cumulative amounts paid or received in relation to a nonexchange financial guarantee may be applied prospectively. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability of financial statements among governments by requiring consistent reporting by those governments that extend nonexchange financial guarantees and by those governments that receive nonexchange financial guarantees. This Statement also will enhance the information disclosed about a government's obligations and risk exposure from extending nonexchange financial guarantees. This Statement also will augment the ability of financial statement users to assess the probability that governments will repay obligation holders by requiring disclosures about obligations that are issued with this type of financial guarantee. GASB Statement No. 71 - Pension Transition for Contributions Made Subsequent to the Measure Date - an Amendment of GASB Statement No. 68 Summary The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Statement No. 68 requires a state or local government employer (or nonemployer contributing entity in a special funding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. If a state or local government employer or nonemployer contributing entity makes a contribution to a defined benefit pension plan between the measurement date of the reported net pension liability and the end of the government's reporting period, Statement No. 68 requires that the government recognize its contribution as a deferred outflow of resources. In addition, Statement No. 68 requires recognition of deferred outflows of resources and deferred inflows of resources for changes in the net pension liability of a state or local government employer or nonemployer contributing entity that arise from other types of events. At transition to Statement No. 68, if it is not practical for an employer or nonemployer contributing entity to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, paragraph 137 of Statement No. 68 required that beginning balances for deferred outflows of resources and deferred inflows of resources not be reported. Consequently, if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, contributions made after the measurement date of the beginning net pension liability could not have been reported as deferred outflows of resources at transition. This could have resulted in a significant understatement of an employer or nonemployer contributing entity's beginning net position and expense in the initial period of implementation. This Statement amends paragraph 137 of Statement No. 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability. Statement No. 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. People The provisions of this Statement are required to be applied simultaneously with the provisions of Statement No. Peopl eSS® 68. Going Beyondthe -19- Numbers Future Accounting Standard Changes - Continued How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will eliminate the source of a potential significant understatement of restated beginning net position and expense in the first year of implementation of Statement No. 68 in the accrual -basis financial statements of employers and nonemployer contributing entities. This benefit will be achieved without the imposition of significant additional costs. 1 Note. From GASB Pronouncements Summaries. Copyright 2014 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. This communication is intended solely for the information and use of management, City Council, other within the City, and the Minnesota Office of the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE -20- People +Process® Going Beyondthe Numbers D - j ABDO IVY SICK & People •�' M EYER S ®I LLP G o� ® Certified Public Accountants & Consultants B � dthe Numbers CITY OF SHOREWOOD, MINNESOTA OTHER REQUIRED REPORT TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2013 OTHER REQUIRED REPORT Independent Auditor's Report on Minnesota Legal Compliance Page No. M IJ 0 \�� -I- u ABDO M i3 Ke'-IT,1 EICK & ®I ME 1 E W LLP Certified Public Accountants & Consultants INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Shorewood, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Shorewood, Minnesota (the City) as of and for the year ended December 31, 2013, and the related notes to the financial statements, and have issued our report thereon dated NEED DATE. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minnesota Statute §6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Out study included all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. This report is intended solely for the information and use those charged with governance and management of the City and the State Auditor and is not intended to be and should not be used by anvone other than these specified parties. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE 5201 Eden Avenue, Suite 250 Edina, MN 55436 952.835.9090 1 Fax 952.835.3261 CITY OF SHOREWOOD SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2013 BILL JOYNES, CITY ADMINISTRATOR REPORT PREPARED BY BRUCE DEJONG, FINANCE DIRECTOR/TREASURER MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA THIS PAGE IS LEFT BLANK INTENTIONALLY CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2013 Exhibit Page No. INTRODUCTORY SECTION Elected and Appointed Officials 4 Organization Chart 5 Letter of Transmittal 7 Certification of Achievement for Excellence in Financial Reporting 12 FINANCIAL SECTION Independent Auditor's Report 15 Management's Discussion and Analysis 19 Basic Financial Statements Government -wide Financial Statements Statement of Net Position 1 33 Statement of Activities 2 34 Fund Financial Statements Governmental Funds Balance Sheet 3 38 Reconciliation of the Balance Sheet to the Statement of Net Position 4 41 Statement of Revenues, Expenditures and Changes in Fund Balances 5 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 6 44 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 7 45 Proprietan' Funds Statements of Net Position 8 46 Statements of Revenues, Expenses and Changes in Net Position 9 48 Statements of Cash Flows 10 50 Fiducian' Fund Statement of Net Position 11 54 Notes to the Financial Statements 55 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet A -1 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances A -2 79 Nonmajor Capital Projects Funds Combining Balance Sheet B -1 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B -2 83 Nonmajor Proprietan' Funds Combining Statements of Net Position C-1 86 Combining Statements of Revenues, Expenses and Changes in Net Position C-2 88 Combining Statements of Cash Flows C -3 90 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual D -1 92 Debt Service Funds Combining Balance Sheet E -1 96 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances E -2 97 Agency Fund Combining Schedule of Changes in Assets and Liabilities F -1 98 Summan' Financial Report Revenues and Expenditures for General Operations - Governmental Funds 0-1 99 -I- CITY OF SHOREWOOD, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 -2- Exhibit Page No. STATISTICAL SECTION (UNAUDITED) Net Position by Component 1 104 Changes in Net Position 2 106 Fund Balances of Governmental Funds 3 110 Changes in Fund Balances of Governmental Funds 4 112 Tax Capacity, Market Value and Estimated Actual Value of Taxable Property 5 114 Property Tax Capacity Rates - Direct and Overlapping Govermlents 6 116 Principal Taxpayers 7 118 Property Tax Levies and Collections 8 119 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 9 120 Computation of Direct and Overlapping Debt 10 121 Legal Debt Margin Information 11 122 Pledged- Revenue Coverage 12 124 Demographic and Economic Statistics 13 125 Principal Employers 14 126 Full -Time Equivalent Cite Government Employees by Function 15 127 Operating Indicators by Function 16 128 Capital Asset Statistics bv Function 17 129 -2- INTRODUCTORY SECTION CITY OF SHOREWOOD SHOREWOOD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 -3- Name Scott Zerbv Richard Woodruff Laura Hotvet Debbie Siakel Kristine Sundberg Name Bill Jovnes Bruce DeJong CITY OF SHOREWOOD, MINNESOTA ELECTED AND APPOINTED OFFICIALS FOR THE YEAR ENDED DECEMBER 31, 2013 ELECTED Title Mai or Council Member Council Member Council Member Council Member APPOINTED Title Citv Administrator Finance Director /Treasurer -4- Term Expires 12/31/14 12/31/16 12/31/14 12/31/14 12/31/16 L V O N on L mo O O 3 a� L N 4- O V THIS PAGE IS LEFT BLANK INTENTIONALLY NEED DATE CITY OF SHOREWOOD 5755 Country Club Road • Shorewood, Minnesota 55331 • 952- 960 -7900 Fax: 952- 474 -0128 • www.ei.shorewood.mn.us • citNhall'aci.shorewood.mn.us Honorable Mayor and Members of the City Council, City of Shorev,-ood, Minnesota Mavor and Citv Council Members: The Comprehensive Annual Financial Report of the City of Shorewood, Minnesota, for the fiscal year ended December 31, 2013, is hereby submitted. The report Nvas prepared in accordance Nvith accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board and meets the requirements of the Office of State Auditor. The report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established internal controls designed to protect the City's assets from loss, theft, or misuse, and to provide sufficient information for the preparation of these financial statements in conformity Nvith GAAP. Because the cost of internal controls should not outweigh the benefits, the City's internal controls have been designed to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. As management, Nve assert that to the best of our knowledge and belief this financial report is complete and reliable in all material respects. The City of Shorewood's financial statements have been audited by the firm of Abdo, Eick & Meyers, LLP, Certified Public Accountants. The goal of the audit Nvas to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates used by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there Nvas reasonable basis for rendering an unqualified opinion that the City's financial statements, for the year ended December 31, 2013, are fairly presented in conformity Nvith GAAP. The independent auditor's report is presented at the front of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). The City's MD &A can be found in the financial section of this report immediately folloNving the independent auditor's report. -7- City Profile The Citv of Shorewood is a suburban community located southwest of the Twin Cities on the southern shore of Lake Minnetonka, a setting of rolling hills and picturesque lakes and creeks. Shorewood has a convenient location, a comprehensive system of highways, and is a short distance from downtown Minneapolis and St. Paul and the Minneapolis -St. Paul International Airport. The City is predominantly a residential community with limited commercial businesses and two commercial shopping malls. The City is 6 square miles in area and had an estimated population of 7,438 as of 2013. The City, which is currently 95% developed, continues to experience some growth in its residential base but, because of the limited availability of large tracts of land, this growth will come slowly through small developments such as the Ashland Woods subdivision. Incorporated in 1956 as a village, the City of Shorewood operates under the Council- Administrator form of government. Policy malting and legislative authority are vested in a governing council consisting of the mayor and four - member council, elected on a non - partisan basis. Council members serve four -year staggered terms, with two council members elected every two years. The mayor is elected to serve a two - year term. The City Administrator is responsible for overseeing the day -to -day operations of the government, and to assign responsibility to City staff for the efficient and effective delivery of City services. The Economic Development Authority (EDA) of the City was created in 2001 pursuant to Minnesota Statutes to carry out economic and industrial development and redevelopment consistent with policies established by the Council. Its board is comprised of members of the City Council. The EDA activities are blended and separate financial statements are not issued for this component unit. The City provides its residents and businesses with a broad range of municipal services consisting of police and fire protection, street maintenance, recreation programs, park maintenance, community and economic development, and administrative services, including building inspections. During 2013, the City operated four enterprises: a water utility, sanitary seNver, recycling, and storm water management utilities. Economic Conditions and Outlook Go>>ernance The City Council, in its leadership role, has effectively established a focus for government in Shorewood and has established overall goals and expectations for the City. The Council's calendar consists of three phases. The first phase is planning. It includes review of the previous year's work plan and identifies goals and priorities for the next twelve months. The second phase is capital finance planning; each year the ten -year Capital Improvement Program is reviewed and updated based upon priorities established in the first phase. Those projects are then incorporated into a financial management plan that includes both operating and capital spending plans to determine the overall feasibility of the plans and the effect of that proposed spending level on fund balances and tax levies necessary to support that level investment. The third phase is budgeting; the annual operating budget is developed based on decisions made in the first two phases. The annual budget serves as the foundation of the City of ShoreNvood's financial planning and control. Departments submit budget requests to Finance in July and the City Administrator presents the proposed budget to the City Council for review. Budget Nvork- sessions are held with the City Council in July and August. The City Council adopts a preliminary budget and tax levy prior to -9- September 15 "' of each year. After individualized property tax estimates are mailed to all properties in November, the City Council holds a Truth -in- Taxation public hearing on the proposed budget and adopts the final budget in December each year. The budget is prepared by fund and function. The City's department directors develop their budgets, with subsequent review and input from the City Administrator and Finance Director. Any changes in the overall budget must be approved by the City Council. Cooperative Public Vervice Delivery Shorewood is committed to Nvorking cooperatively with other Lake Minnetonka area cities to carefully consider methods to efficiently deliver public services. The City has various contractual arrangements with other governmental jurisdictions and with private entities for providing many of these services. The City is also involved in cooperative employee training, disaster preparedness and other areas of mutual concern as an active participant in the Lake Minnetonka area. The City has been a member city of the South Lake Minnetonka Police Department (SLMPD) since its inception in 1973. The other members of this joint powers organization are the cities of Excelsior, Greenwood, and Tonka Bay. The City of Shorewood, along with the cities of Deephaven, Excelsior, Greenwood, and Tonka Bay, has been a member of the Excelsior Fire District since 2000. The Excelsior Fire District is a joint powers organization. A combined police and fire public safety building that serves the South Lake Minnetonka Area cities was completed in late 2003. The City of Shorewood, along with the cities of Deephaven, Excelsior, Greenwood, and Tonka Bay, hold title to the Southshore Center, a community center used by senior citizens and community groups for activities, meetings, festivals. The City of Shorewood operated the Southshore Community Center for the entire year of 2013. The Center was built in the late 1990s as a joint venture by the following five Lake Minnetonka Area Cities: Shorewood, Excelsior, Tonka Bay, Deephaven, and Greenwood. Until recently, the Center was leased to an organization that emphasized senior programming. Many of the senior - oriented programs still remain during the day, and these are a critical component, but Center renovations were made to attract new renters, including businesses, community education classes, and wedding, birthday, and graduation parties. Shorewood has committed to operate the center through December, 2015 by the renewal of an automatic three year extension. New programs have been developed to attract all ages. The Southshore Center's long range options are being evaluated by a committee of the South Shore Senior Partners and other interested parties. The City contracts with Hennepin County for property assessment services. The Hennepin County Assessor analyzes property sales information, sets taxable values, and handles the valuation appeal process. Debt Administration As of December 31, 2013, the City's debt outstanding totaled $12,380,000. Of this total, $3,540,000 is General Obligation Water Revenue bonds issued in 2006 and 2013. The proceeds from these bonds financed water system extensions and improvements and will be repaid from special assessments and water rate revenues. -9- The remaining outstanding debt balance of $8,840,000 is EDA Lease Revenue Advance Refunding bonds issued in 2007 for the public safety buildings and EDA Lease Revenue bonds issued in 2008 for remodeling City Hall. These bonds will be repaid from lease payments from the Excelsior Fire District, South Lake Minnetonka Police Department, and the City of Shorewood. The City of ShoreNvood's bond rating was upgraded to Aa2 from Aa3 in July, 2008, by Moody's Investors Service. At that time, Moody's also upgraded the Shorewood Economic Development Authority (EDA) bond rating to Aa3 from Al, based upon the City's pledge to make the lease payments subject to annual appropriation in the City's operating budget, and the fact that a city hall facility is an essential part of a municipality. Long-term Financial Planning The City has implemented various financial /budgetary policies to guide the City Council and staff when malting financial decisions to ensure the long -term stability and flexibility of City finances and operations. These policies include the following: • The original budget should be balanced with revenues equal to expenditures. By policy, the City Council has set the fund balance level in the General Fund 55 -60% of the next years' expenditure budget including transfers. This policy ensures the long -term economic stability of the organization by providing adequate Nyorking capital given the periodic nature of tax receipts and by providing for unexpected shortfalls or emergencies. In accordance with this policy, the City Council may use up to 3% of any General Fund reserves in excess of 60% to reduce the budgeted tax levy, or for one -time projects, or transfer to any of the city's capital funds. The City will maintain a ten -year capital improvement plan to provide for capital asset acquisition, maintenance, replacement, and retirement. • The City will continue to accumulate resources for future capital equipment and improvement projects with operating transfers to various capital project funds in 2013. Budgeted transfers from the General Fund for 2013 were $962,650. Major Initiatives The City began a program of trail improvements in 2013 which included a segment linking Shorewood to the Three Rivers Regional Trail along County Road 19 and a trail along the south side of Smithtown Road from Eureka Road North to the Nyestern border of the city which links to the City of Victoria's trail system. Additional trail segments are planned for Galpin Lake Road, Excelsior Boulevard, and Smithtown Road east of Eureka Road North. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Shorewood for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2012. -10- The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such comprehensive annual financial report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City of Shorewood has received a Certificate of Achievement for the past eighteen consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments We would like to express our appreciation to the employees of the Administration, Finance, Planning, and Public Works departments for their contribution to the preparation of this report. We would also like to thank the Mayor and Council members for their continued support in planning and conducting the financial operations of the City in a responsible and prudent manner. Respectfully submitted, w Bruce M. DeJong Finance Director /Tr urer -11- CIJ Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Shorewood Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2012 W&OP.- 0#4-0AI0*.-V Executive Director /CEO -12- FINANCIAL SECTION CITY OF SHOREWOOD SHOREWOOD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 -13- THIS PAGE IS LEFT BLANK INTENTIONALLY •' n ABDO T0w_* * SICK & ®I MEYER SUP UP Certified Public Accountants & Consultants IIa10JX19aa10]aa101:10 0]1m 16ill Na ®:NI Honorable Mavor and Cite Council City of Shorewood, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the Cite of Shorewood, Minnesota (the Citv), as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America: this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. The prior year comparative information has been derived from the Citv's 2012 financial statements and, in our report dated June 24, 2013 we express unmodified opinions on the respective proprietan' fund financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. 5201 Eden Avenue, Suite 250 Edina, MN 55436 _15_ 952.835.9090 1 Fax 952.835.3261 THIS PAGE IS LEFT BLANK INTENTIONALLY Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 19 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide anv assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional an h-sis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance 11 - -ith auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota NEED DATE -17- People + Nocess,M Goinu Beyond t he Numbers THIS PAGE IS LEFT BLANK INTENTIONALLY -18- Management's Discussion and Analysis As management of the Cite of Shorewood, Minnesota, (the City), we offer readers of the Citv's financial statements this narrative overview and analysis of the financial activities of the Cite for the fiscal year ended December 31, 2013. Financial Highlights • The assets of the Cite exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal � -ear b�- $31,008,388 (net position). Of this amount, $15,090,066 (unrestricted net position) may be used to meet the Cit_v's ongoing obligations to residents and creditors. • The City's total net position decreased $100,393, which is dine to expenses in excess of revenues in governmental activities. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $7,215,873 , a decrease of $869,694 in comparison with the prior year. This decrease is primarily the result of capital expenditures in capital project funds. Approximately 53.9 percent of this total amount, $3,890,905, is unassigned and available for spending at the City's discretion. • At the end of the current fiscal year, unassigned fund balance for the General fund was $3,943,342, or 91.2 percent of total 2013 expenditures. The City has a policy to maintain a General fund working capital balance of 55.0 - 60.0 percent of expenditures and transfers. • The City's total debt increased $367,963, or 3.0 percent during the current fiscal year. The key factor in this increase was the issuance of refunding bonds. The new bonds refunded the G.O. Revenue Bonds of 2005 during 2013: however, the G.O. Water Revenue Bonds of 2006 will not be paid off until 2014. The issuance of the refunding bonds is offset by regularly scheduled principal and interest payments. -19- Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Citv's basic financial statements. The Citv's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. Figure 1 illustrates how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, ive have included a section with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Figure 1 Required Components of the City's Annual Financial Report ................................................ ............................... Management's Basic Required Discussion and Financial Supplementary Analysis Statements Information Government- Fund Notes to the wide Financial Financial Financial Statements Statements Statements Summary 0 0 Detail -20- Figure 2 summarizes the major features of the City's financial statements, including the portion of the Cite government they cover and the types of information they contain. The remainder of this overview section of management's discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major features of the Government -wide and Fund Financial Statements Government -wide financial statements. The government -inzde financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private - sector business. The statement of net position presents information on all of the Cite s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Cite is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the inning of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the Cite that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, and interest on long -term debt. The business -type activities of the Cite include water, sewer, recycling, and storraivater management utility. -21- Fund Financial Statements Government -wide Governmental Funds Proprietary Funds Statements Scope Entire City government The activities of the Cite that Activities the Cite operates (except fiducian funds) and are not proprietary or similar to private businesses, the City's component units fiducian , such as police, fire such as the water and server and parks system Required financial • Statement of Net • Balance Sheet • Statements of Net statements Position • Statement of Revenues, Position • Statement of Activities Expenditures, and • Statements of Revenues, Changes in Fund Expenses and Changes in Balances Fund Net Position • Statements of Cash Flows Accounting Basis and Accrual accounting and Modified accrual accounting Accrual accounting and measurement focus economic resources focus and current financial economic resources focus resources focus Type of asset /liability All assets and liabilities, both Only assets expected to be All assets and liabilities, both information financial and capital, and used up and liabilities that financial and capital, and short-term and long -term come due during the year or short-term and long -term soon thereafter; no capital assets included Type of deferred All deferred Only deferred outflows of All deferred outflows /inflows of outflows /inflows of resources expected to be outflows /inflows of resources information resources, regardless of used up and deferred inflows resources, regardless of when cash is received or paid of resources that come due when cash is received or paid during the year of son thereafter: no capital assets included Type of in flow /out flow All revenues and expenses Revenues for which cash is All revenues and expenses information during year, regardless of received during or soon after during the year, regardless of when cash is received or paid the end of the year: when cash is received or paid expenditures when goods or services have been received and payment is due during the year or soon thereafter Government -wide financial statements. The government -inzde financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private - sector business. The statement of net position presents information on all of the Cite s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Cite is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the inning of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the Cite that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, and interest on long -term debt. The business -type activities of the Cite include water, sewer, recycling, and storraivater management utility. -21- The government -wide financial statements include not only the Cite itself (known as the primary government), but also a legally separate Economic Development Authority (EDA) for which the Cite is financially accountable. The EDA, although legally separate, functions for all practical purposes as a department of the City, and therefore has been included as an integral part of the primary government. The government -wide financial statements start on page 33 of this report. Fund financial statements. A fitnd is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance ivith finance - related legal requirements. All of the funds of the Cite can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds ivith similar information presented for governmental activities in the government -1vide financial statements. By doing so, readers may better understand the long -term impact by the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Citv maintains 12 individual governmental funds, four of which are Debt Service funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Debt Service, Street Reconstruction, and Trail Reconstruction funds, which are considered to be major funds. Data from the other five governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or schedules elsewhere in this report. The Cite adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the General fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 38 of this report. Proprietary funds. The Cite maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as bnsiness -type activities in the government- 11 - -ide financial statements. The Cite uses enterprise funds to account for its water, seiner, recycling, and storraivater management utility. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds. The Water and Seiver funds are considered to be major funds of the City, while the Recycling and Storinivater management utility funds are combined into a single, aggregated column in the basic financial statements. Individual fund data for each of these nonmajor proprietary funds is provided in the form of combining statements or schedules elsewhere in this report. The basic proprietary fund financial statements start on page 46 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the Cite. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 54 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements start on page 55 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented following the notes to the financial statements. Combined and individual fund financial statements and schedules starts on page 78 of this report. -22- Government -wide Financial Analysis As noted earlier, net position may sen-e over time as a useful indicator of a government's financial position. In the case of the Cite, assets exceeded liabilities and deferred inflows of resources by $31,008,388 at the close of the most recent fiscal near. Of the Citv's net position 51.3 percent reflects its investment in capital assets (e.g., land, buildings, machinery- and equipment), less anv related debt used to acquire those assets that is still outstanding. The Cite uses these capital assets to provide services to citizens- ' consequently, these assets are not available for future spending. Although the Citv's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Shorewood's Summary of Net Position Liabilities Noncurrent liabilities Other liabilities Total liabilities Net position Net investment in capital assets Unrestricted Total net position 9,024,725 9,696,762 (672,037) 3,540,000 2,500,000 1,040,000 370,223 255,241 114,982 74,101 155,299 (81,198) 9,394,948 9,952,003 (557,055) 3,614,101 2,655,299 958,802 9,212,415 8,487,162 725,253 6,705,907 6,494,076 211,831 7,138,847 7,979,370 (840,523) 7,951,219 8,148,173 (196,954) $16,351,262 $16,466,532 $ (115270) $14,657,126 $14,642,249 $ 14,877 The balance of unrestricted net position is $15,090,066. This may be used to meet the City's ongoing obligations to citizens and creditors. -23- Governmental Activities Business-type Activities Increase Restated Increase 2013 2012 (Decrease) 2013 2012 (Decrease) Assets Cash and temporan- investments $ 6,707,144 $ 7,593,686 $ (886,542) $ 7240,221 $ 7,452,376 $ (212,155) Cash with fiscal agent - - - 1,422,314 235,245 1,187,069 Receivables 8,553,567 8,997,619 (444,052) 642,785 615,851 26,934 Prepaids 33,016 50,000 (16,984) - - - Land held for resale 150,068 150,068 - - - - Capital assets 10,302,415 9,627,162 675,253 8,965,907 8,994,076 (28,169) Total assets 25,746,210 26,418,535 (672,325) 18,271,227 17,297,548 973,679 Liabilities Noncurrent liabilities Other liabilities Total liabilities Net position Net investment in capital assets Unrestricted Total net position 9,024,725 9,696,762 (672,037) 3,540,000 2,500,000 1,040,000 370,223 255,241 114,982 74,101 155,299 (81,198) 9,394,948 9,952,003 (557,055) 3,614,101 2,655,299 958,802 9,212,415 8,487,162 725,253 6,705,907 6,494,076 211,831 7,138,847 7,979,370 (840,523) 7,951,219 8,148,173 (196,954) $16,351,262 $16,466,532 $ (115270) $14,657,126 $14,642,249 $ 14,877 The balance of unrestricted net position is $15,090,066. This may be used to meet the City's ongoing obligations to citizens and creditors. -23- Governmental activities. Governmental activities decreased the City's net position by $115,270. Key elements of this decrease are as follows: City of Shorewood's Changes in Net Position Expenses General government Governmental Activities Business -type Activities (20,990) - - Increase Public safety Restated Increase 62,470 2013 2012 (Decrease) 2013 2012 (Decrease) Revenues - - - Culture and recreation 471,784 460,879 Program revenues - - - Interest on long -term debt 379,685 428,887 Charges for sen-ices $ 908,458 $ 832,626 $ 75,832 $ L731696 $ 1940,551 $ (207,855) Operating grants 693,193 689,205 3,988 Sewer - - and contributions 144,112 102,959 41,153 25,830 23,007 1823 Capital grants 181,537 187,713 (6,176) Stormwater management utility - - and contributions - - - 53,200 22,400 30,800 General revenues Total expenses 6,057,089 6,331,043 (273,954) Property taxes 4,768,989 4,761213 7,776 - - - Grants and contributions Change in net position (115,270) (566,642) 451372 14,877 not restricted to 18L474 Net position, Januaiv 1 16,466,532 17,033,174 (566,642) 14,641249 specific programs 5,818 6,019 (201) - - - Unrestricted investment Net position, December 31 $16,351,262 $16,466,532 $ (115,270) $14,657,126 $14,641249 earnings 37,461 6L584 (24,123) 31913 64,135 (31,222) Gain on sale of capital assets 76,981 - 76,981 - - - Total revenues 5,94L819 5,764,401 177,418 L844,639 2,050,093 (205,454) Expenses General government 1,310,296 1,331,286 (20,990) - - - Public safety 2,010,338 1,947,868 62,470 - - - Public works 1,884,986 2,162,123 (277,137) - - - Culture and recreation 471,784 460,879 10,905 - - - Interest on long -term debt 379,685 428,887 (49,202) - - - Water - - - 693,193 689,205 3,988 Sewer - - - 847,097 1,065,926 (218,829) Recycling - - - 181,537 187,713 (6,176) Stormwater management utility - - - 107,935 273,846 (165,911) Total expenses 6,057,089 6,331,043 (273,954) L829,762 2,216,690 (386,928) Change in net position (115,270) (566,642) 451372 14,877 (166,597) 18L474 Net position, Januaiv 1 16,466,532 17,033,174 (566,642) 14,641249 14,808,846 (166,597) Net position, December 31 $16,351,262 $16,466,532 $ (115,270) $14,657,126 $14,641249 $ 14,877 -24- The following graph depicts various governmental activities and shows the revenue and expenses directly related to those activities. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Expenses and Program Revenues - Governmental Activities General government Public safety Public works Culture and Interest on long -term recreation debt IIIIIIIII Expenses IIIIIIIIIIII Program revenues Revenues by Source - Governmental Activities Grants and Unrestricted „„+ investment earnings Charees for services Property to 81.3% -25- )perating grants and contributions 2.5% Business -type activities. Business -type activities increased the City's net position by $14,877. $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Expenses and Program Revenues - Business -type Activities Water Seiver Recycling Stoninvater management utility Operating grants an contributions 1.4% iiiiiiiiii Expenses uuuuuu Program revenues Revenues by Source - Business -type Activities Capital grants and Unrestricted contributions inA'POMPnt P�qminac -26- arges for services 93.9% Financial Analysis of the Government's Funds As noted earlier, the Cite uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements Governmental funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fitnd balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $7,215,873, a decrease of $869,694 in comparison with the prior rear. Approximately 54 percent of this total amount, $3,890,905 constitutes unassigned fund balance, which is available for spending at the City's discretion. The remaining fund balance is made up of the following: 1) Nonspendable ($183,084), 2) Restricted ($24,450), and 3) Assigned ($3,117,434). The General fund is the chief operating fund of the Cite. At the end of the current year, the fund balance of the General fund was $3,976,358. As a measure of the General fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Total fund balance represents 91.2 percent of same year fund expenditures. The fund balance of the City's General fund increased $351,890 during the current fiscal year. The Debt Service fund has a total fund balance of $24,450, all of which is restricted for the payment of debt service. The increase in fund balance of $6,750 was in line with the Citv's debt service financing plan. The Street Reconstruction fund has a fund balance of $2,143,328. The fund balance increased by $382,991 during the current fiscal year due to a transfer in of $714,000, which exceeded expenditures. The Trail Construction fund has a fund balance of ($52,437). The fund balance decreased $17,861 during the current fiscal year due to an excess of expenditures over operating transfers in. Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the enterprise funds at the end of the year amounted to $7,951,219. The total increase in net position for the funds was $14,877. Other factors concerning the finances of this fund have already been addressed in the discussion of the City's business -type activities. General Fund Budgetary Highlights The City's General fund budget was amended during the year. The original budget called for the planned use of General fund reserves in the amount of $103248 while the amended budget called for the planned use of $104,248 of General fund reserves. Revenues were over budget by $99,157, and expenditures were under budget by $83,799. The actual amounts were different from the final budget amounts because of the following: • The largest revenue variance was in licenses and permits, which were over budget by $80,400. The next largest revenue variance was in interest on investments, which was under budget by $22,089. • There were seven departments that experienced a negative budget variance. The largest negative expenditure variance was related to Mavor and Council which was $18,464 over budget due to other services and charges. -27- Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business -type activities as of December 31, 2013, amounts to $19,268,322 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, park facilities, and roads. Major capital asset events during the current fiscal year included the following: • Purchase of Elgin sweeper and other equipment • Sale of property at 5795 Countn' Club Road • Disposal of various pieces of equipment • Improvement work done on lift stations 5 and 6 • Improvements to the Silver Lake Outlet Channel Additional information on the City's capital assets can be found in Note 3B starting on page 66 of this report. Land Construction in progress Buildings Improvements other than buildings Infrastructure Machinen' and equipment Total City of Shorewood's Capital Assets (net of depreciation) Governmental Activities Business-type Activities Increase Increase 2013 2012 (Decrease) 2013 2012 (Decrease) 741,826 $ 741,826 $ - $ 434,113 $ 434,113 $ - 1,565,510 - 1,565,510 - 63,931 (63,931) 2,015,401 2,339,814 (324,413) - - - 287,368 325,942 (38,574) - - - 4,904,016 5,505,295 (601,279) 8,531,794 8,491,701 40,093 788,294 714,285 74,009 - 4,331 (4,331) $10,302,415 $ 9,627,162 $ 675,253 $ 8,965,907 $ 8,994,076 $ (28,169) Long -term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $12,380,000. Of this amount, $8,840,000 is lease revenue bonds and $3,540,000 is general obligation revenue bonds. While all of the City's bonds have dedicated revenue streams pledged to repayment, the general obligation revenue bonds are all backed by the full faith and credit of the City. General obligation revenue bonds Lease revenue bonds Compensated absences payable Total City of Shorewood's Outstanding Debt Governmental Activities Increase 2013 2012 (Decrease) Business-type Activities Increase 2013 2012 (Decrease) - $ - $ - $ 3,540,000 $ 2,500,000 $ 1,040,000 8,840,000 9,515,000 (675,000) - - - 184,725 181,762 2,963 - - - 9,024,725 $ 9,696,762 $ (672,037) $ 3,540,000 $ 2,500,000 $ 1,040,000 Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. Additional information on the City's long -term debt can be found in Note 3I) starting on page 68 of this report. -28- Economic Factors and Neat Year's Budgets and Rates • The Cite is experiencing an increase in residential property values, particularly on higher value properties around Lake Minnetonka, but lower value home prices seem to be trending up in line with the entire region. • Unemployment trends in the region compare favorable to national indices. • The 2014 budget was developed to continue using General fund balance to bring the overall balance down to the police level while continuing to provide the same basic service levels to the public. • The property tax levy for the 2014 budget was increased 2% from the 2013 budget, the first increase in five years. All of these factors were taken into account in preparing the City's budget for the 2013 fiscal year During the 2013 fiscal year, the fund balance in the General fund increased by $351,890. This Cite budgeted a use of fund balance of $104,248. This planned use of fund balance was in accordance with the Fund Balance Police adopted by the Cite Council. The Cite Council intends to use proceeds from the sale of the house at 5795 Country- Club Road to partially fund improvements to Badger Park. Other possible uses of available fund balance in excess of the police level include one -time projects, and transfers to capital project funds as determined by the Cite Council. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Cite of Shorewood, 5755 Country- Club Road, Shorewood, Minnesota 55331. -29- THIS PAGE IS LEFT BLANK INTENTIONALLY -30- GOVERNMENT -WIDE FINANCIAL STATEMENTS CITY OF SHOREWOOD SHOREWOOD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 -31- THIS PAGE IS LEFT BLANK INTENTIONALLY -32- CITY OF SHOREWOOD, MINNESOTA STATEMENT OF NET POSITION DECEMBER 31, 2013 ASSETS Cash and temporary- investments Cash with fiscal agent Receivables Accrued interest Property tales Accounts Special assessments Lease Due from other governments Prepaid items Land held for resale Capital assets Nondepreciable assets Depreciable capital assets, net TOTAL ASSETS LIABILITIES Accounts and contracts payable Accrued salaries payable Due to other governments Accrued interest payable Unearned revenue Noncurrent liabilities Due within one near Due in more than one near TOTAL LIABILITIES NET POSITION Net investment in capital assets Unrestricted TOTAL NET POSITION The notes to the financial statements are an integral part of this statement. _33_ Exhibit 1 Governmental Business -type Activities Activities Total $ 6,707,144 $ 7,240,221 $ 13,947,365 - 1,422,314 1,422,314 171,494 40,709 212,203 136,967 - 136,967 20,172 422,291 442,463 - 179,785 179,785 8,155,959 - 8,155,959 68,975 - 68,975 33,016 - 33,016 150,068 - 150,068 2,307,336 434,113 2,741,449 7,995,079 8,531,794 16,526,873 25,746,210 18,271,227 44,017,437 170,983 28,293 199,276 7,892 1,241 9,133 1,925 2,748 4,673 138,160 41,819 179,979 51,263 - 51,263 857,922 1,380,000 2,237,922 8,166,803 2,160,000 10,326,803 9,394,948 3,614,101 13,009,049 9,212,415 6,705,907 15,918,322 7,138,847 7,951,219 15,090,066 $ 16,351,262 $ 14,657,126 $ 31,008,388 Functions/Programs Govertunental activities General government Public safety Public works Culture and recreation Interest on long -term debt Total governmental activities Bu sine ss -ty pe activities CITY OF SHOREWOOD, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2013 Water 693,193 537,713 - Program Revenues Seiver 847,097 834,320 - Operating Capital Grants Recycling Charges for Grants and and Expenses Services Contributions Contributions Total business -type activities 1,829,762 1,732,696 25,830 53,200 $ 1,310,296 $ 187,628 $ 700 $ - 2,010,338 599,810 247 - 1,884,986 226 100,150 - 471,784 120,794 43,015 - 379,685 - - - 6,057,089 908,458 144,112 - Water 693,193 537,713 - 40,000 Seiver 847,097 834,320 - 13,200 Recycling 181,537 165,713 25,830 - Storrawater management utility 107,935 194,950 - - Total business -type activities 1,829,762 1,732,696 25,830 53,200 Total $ 7,886,851 $ 2,641,154 $ 169,942 $ 53,200 General revenues Taxes Property taxes, levied for general purposes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Total general revenues Change in net position Net position, Januan- 1 Net position, December 31 The notes to the financial statements are an integral part of this statement. -34- Exhibit 2 Net (Elpense) Revenue and Changes in Net Position Governmental Business -type $ (1,121,968) $ - $ (1,121,968) (1,410,281) - (1,410,281) (1,784,610) - (1,784,610) (307,975) - (307,975) (379,685) - (379,685) (5,004,519) - (5,004,519) 16,466,532 14,642,249 31,108,781 - (115,480) (115,480) - 423 423 - 10,006 10,006 - 87,015 87,015 - (18,036) (18,036) (5,004,519) (18,036) (5,022,555) 4,768,989 - 4,768,989 5,818 - 5,818 37,461 32,913 70,374 76,981 - 76,981 4,889,249 32,913 4,922,162 (115,270) 14,877 (100,393) 16,466,532 14,642,249 31,108,781 $ 16,351,262 $ 14,657,126 $ 31,008,388 -35- THIS PAGE IS LEFT BLANK INTENTIONALLY -36- FUND FINANCIAL STATEMENTS CITY OF SHOREWOOD SHOREWOOD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 -37- CITY OF SHOREWOOD, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2013 ASSETS Cash and temporary investments Receivables Accrued interest Taxes Accounts Lease Due from other governments Prepaid items Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Accrued salaries payable Due to other governments Unearned revenue TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes Unavailable revenue - lease receivable Unavailable revenue - grants TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES Nonspendable Prepaid items Land held for resale Restricted for debt service Assigned to Street reconstruction Capital outlay Community center operations Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Debt Street General Service Reconstruction $ 3,942,981 $ 10,333 $ 2,145,469 16,604 - 9,452 136,967 - - 20,172 - - - 7,750,000 - 54,858 14,117 - 33,016 - - $ 4,204,598 $ 7,774,450 $ 2,154,921 $ 55,521 $ - $ 11,593 7,784 - - 1,925 - - 51,263 - - 116,493 - 11,593 82,076 - - - 7,750,000 - 29,671 - - 111,747 7,750,000 - 33,016 - - - 24,450 - - - 2,143,328 3,943,342 - - 3,976,358 24,450 2,143,328 $ 4,204,598 $ 7,774,450 $ 2,154,921 The notes to the financial statements are an integral part of this statement. -38- Exhibit 3 Other Total Trail Governmental Governmental Construction Funds Funds $ 39,561 $ 568,800 $ 6,707,144 - 11,326 37,382 - - 136,967 - - 20,172 - 405,959 8,155,959 - - 68,975 - - 33,016 - 150,068 150,068 $ 39,561 $ 1,136,153 $ 15,309,683 $ 91,998 $ 11,871 $ 170,983 - 108 7,892 - - 1,925 - - 51,263 91,998 11,979 232,063 - - 82,076 - - 7,750,000 - - 29,671 - - 7,861,747 - - 33,016 - 150,068 150,068 - - 24,450 - - 2,143,328 - 973,637 973,637 - 469 469 (52,437) - 3,890,905 (52,437) 1,124,174 7,215,873 $ 39,561 $ 1,136,153 $ 15,309,683 -39- THIS PAGE IS LEFT BLANK INTENTIONALLY -40- CITY OF SHOREWOOD, MINNESOTA Exhibit 4 RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS DECEMBER 31, 2013 Total fund balances - governmental $ 7,215,873 Amounts reported for the governmental activities in the statement of net position are different because Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 37,183,863 Less: accumulated depreciation (26,881,448) Long -term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long -term liabilities at year -end consist of Bonds parable (8,840,000) Compensated absences parable (184,725) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are reported as unavailable revenue in the funds. Interest on lease receivable 134,112 Delinquent taxes receivable 82,076 Leases receivable 7,750,000 Grants receivable 29,671 Governmental funds do not report a liability for accrued interest until due and payable. (138,160) Total net position - governmental activities $ 16,351,262 The notes to the financial statements are an integral part of this statement. -41- CITY OF SHOREWOOD, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNI) BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2013 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,041,358 Debt Street OTHER FINANCING SOURCES (USES) General Service Reconstruction REVENUES - 100,450 714,000 Tales $ 4,764,472 - - Licenses and permits 204,600 - - Intergovernmental 76,544 - - Charges for services 50,829 - - Fines and forfeitures 59,294 - - Interest on investments 12,911 - 9,013 Miscellaneous 194,477 972,513 - TOTAL REVENUES 5,363,127 972,513 9,013 EXPENDITURES Current General government 1,249,616 - - Public safety 1,494,633 - - Public works 852,667 - - Culture and recreation 209,112 - - Capital outlay General government 322 - - Public safety 515,419 - - Public works - - 340,022 Culture and recreation - - - Debt service Principal - 675,000 - Interest and service charges - 391,213 - TOTAL EXPENDITURES 4,321,769 1,066,213 340,022 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,041,358 (93,700) (331,009) OTHER FINANCING SOURCES (USES) Transfers in - 100,450 714,000 Sale of capital assets 317,182 - - Transfers out (1,006,650) - - TOTAL OTHER FINANCING SOURCES (USES) (689,468) 100,450 714,000 NET CHANGE IN FUNI) BALANCES 351,890 6,750 382,991 FUNI) BALANCES, .TANUARY 1 3,624,468 17,700 1,760,337 FUNI) BALANCES, DECEMBER 31 $ 3,976,358 $ 24,450 $ 2,143,328 The notes to the financial statements are an integral part of this statement. -42- Exhibit 5 Other Total Trail Governmental Governmental Construction Funds Funds - 4,764,472 - - 204,600 - - 76,544 - 41,720 92,549 - - 59,294 - 15,537 37,461 - 67,322 1,234,312 - 124,579 6,469,232 - - 1,249,616 - - 1,494,633 - 7,404 860,071 11,109 104,524 324,745 - - 322 - - 515,419 - 265,739 605,761 1,482,752 56,576 1,539,328 - - 675,000 - - 391,213 1,493,861 434,243 7,656,108 (1,493,861) (309,664) (1,186,876) 1,476,000 192,200 2,482,650 - - 317,182 - (1,476,000) (2,482,650) 1,476,000 (1,283,800) 317,182 (17,861) (1,593,464) (869,694) (34,576) 2,717,638 8,085,567 $ (52,437) $ 1,124,174 $ 7,215,873 -43- CITY OF SHOREWOOD, MINNESOTA Exhibit 6 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2013 Total net change in fund balances - governmental funds $ (869,694) Amounts reported for governmental activities in the statement of activities are different because Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlays 1,888,397 Depreciation expense (972,943) The statement of activities reports gains arising form the trade -in of existing capital assets to acquire new capital assets. Conversely the governmental funds do not report any gain or loss on a trade - in of capital assets (240,201) The issuance of long -term debt provides current financial resources to governmental funds, while the repayment of principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has and- effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Principal repayments 675,000 Interest on long -term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however interest expense is recognized as the interest accrues, regardless of when it is due. 11,528 Certain revenues are recognized as soon as it is earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until the -\- are available to liquidate liabilities of the current period. Delinquent taxes 4,517 Special assessments (2,210) Leases (636,372) Grants 29,671 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences (2,963) Change in net position - governmental activities $ (115,270) The notes to the financial statements are an integral part of this statement. -44- CITY OF SHOREWOOD, MINNESOTA Exhibit 7 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2013 The notes to the financial statements are an integral part of this statement. -45- Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Tales $ 4,763,319 $ 4,763,319 $ 4,764,472 $ 1,153 Licenses and permits 124,200 124,200 204,600 80,400 Intergovernmental 70,401 70,401 76,544 6,143 Charges for services 35,150 35,150 50,829 15,679 Fines and forfeitures 57,000 57,000 59,294 2,294 Interest on investments 35,000 35,000 12,911 (22,089) Miscellaneous 178,900 178,900 194,477 15,577 TOTAL REVENUES 5,263,970 5,263,970 5,363,127 99,157 EXPENDITURES Current General government 1,233,511 1,233,511 1,249,616 (16,105) Public safety 1,490,747 1,490,747 1,494,633 (3,886) Public works 944,256 944,256 852,667 91,589 Culture and recreation 211,574 212,574 209,112 3,462 Capital outlay General government 200 200 322 (122) Public safety 523,080 523,080 515,419 7,661 Public works 1,200 1,200 - 1,200 TOTAL EXPENDITURES 4,404,568 4,405,568 4,321,769 83,799 EXCESS OF REVENUES OVER EXPENDITURES 859,402 858,402 1,041,358 182,956 OTHER FINANCING SOURCES (USES) Sale of capital asset - - 317,182 317,182 Transfers out (962,650) (962,650) (1,006,650) (44,000) TOTAL OTHER FINANCING SOURCES (USES) (962,650) (962,650) (689,468) 273,182 NET CHANGE IN FUND BALANCES (103,248) (104,248) 351,890 456,138 FUND BALANCES, JANUARY 1 3,624,468 3,624,468 3,624,468 - FUND BALANCES, DECEMBER 31 $ 3,521,220 $ 3,520,220 $ 3,976,358 $ 456,138 The notes to the financial statements are an integral part of this statement. -45- CITY OF SHOREWOOD, MINNESOTA STATEMENTS OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2013 AND 2012 LIABILITIES CURRENT LIABILITIES Accounts and contracts payable Business -type Activities - Enterprise Funds 13,108 82,108 601 368 611 804 - Water 432 SeNver 2,316 283 2013 2012 2013 2012 ASSETS Bonds payable - current 1,380,000 185,000 - CURRENT ASSETS TOTAL CURRENT LIABILITIES 1,429,434 254,008 16,228 Cash and temporary investments $ 3, 805, 301 $ 3,810,729 $ 3,233,275 $ 3,514,714 Cash with fiscal agent 1,422,314 235,245 - - Receivables TOTAL LIABILITIES 3,589,434 2,569,008 16,228 Accrued interest 21,279 15,633 18,349 14,549 Accounts 102,288 108,743 225,725 220,760 Special assessments 3,604 2,813 6,106 4,823 TOTAL CURRENT ASSETS 5,354,786 4,173,163 3,483,455 3,754,846 NONCURRENT ASSETS Special assessments receivable 128,623 116,248 25,937 23,394 Capital assets Land - - - - Constiuction in progress - - - 63,931 Machinery and equipment 39 ,869 39,869 43,385 43,385 Infrastructure 9,944,664 9,944,664 9,105,084 8,776,827 Less accumulated depreciation (4,253,010) (3,981,844) (7,428,531) (7,381,505) NET CAPITAL ASSETS 5,731,523 6,002,689 1,719,938 1,502,638 TOTAL NONCURRENT ASSETS 5,860,146 6,118,937 1,745,875 1,526,032 TOTAL ASSETS 11,214,932 10,292,100 5,229,330 5,280,878 LIABILITIES CURRENT LIABILITIES Accounts and contracts payable 6,815 18,314 13,108 82,108 Accrued salaries payable 368 - 804 - Due to other governments 432 874 2,316 283 Accrued interest payable 41,819 49,820 - - Bonds payable - current 1,380,000 185,000 - - TOTAL CURRENT LIABILITIES 1,429,434 254,008 16,228 82,391 NONCURRENT LIABILITIES Bonds payable 2,160,000 2,315,000 - - TOTAL LIABILITIES 3,589,434 2,569,008 16,228 82,391 NET POSITION Net investment in capital assets 3,471,523 3,502,689 1,719,938 1,502,638 Unrestricted 4,153,975 4,220,403 3,493,164 3,695,849 TOTAL NET POSITION $ 7,625,498 $ 7,723,092 $ 5,213,102 $ 5,198,487 The notes to the financial statements are an integral part of this statement -46- Exhibit 8 Business -type Activities - Enterprise Funds Nonmajor Enterprise Totals 2013 2012 $ 201,645 $ 126,933 $ 7,240,221 $ 7,452,376 - - 1,422,314 235,245 1,081 854 40,709 31,036 94,278 93,770 422,291 423,273 2,702 2,490 12,412 10,126 299,706 224,047 9,137,947 8,152,056 - - 2,160,000 2,315,000 12,813 11,774 167,373 151,416 434,113 434,113 434,113 434,113 - - - 63,931 - - 83,254 83,254 1,352,076 1,292,577 20,401,824 20,014,068 (271,743) (237,941) (11,953,284) (11,601,290) 1,514,446 1,488,749 8,965,907 8,994,076 1,527,259 1,500,523 9,133,280 9,145,492 1,826,965 1,724,570 18,271,227 17,297,548 8,370 3,900 28,293 104,322 69 - 1,241 - - - 2,748 1,157 - - 41,819 49,820 - - 1,380,000 185,000 8,439 3,900 1,454,101 340,299 - - 2,160,000 2,315,000 8,439 3,900 3,614,101 2,655,299 1,514,446 1,488,749 6,705,907 6,494,076 304,080 231,921 7,951,219 8,148,173 $ 1,818,526 $ 1,720,670 $ 14,657,126 $ 14,642,249 -47- CITY OF SHOREWOOD, MINNESOTA STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 OPERATING REVENUES Charges for services OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Insurance Water purchases Utilities I)isposal charges Other OPERATING INCOME (LOSS) NONOPERA TING REVENUES (EXPENSES) Business -type Activities - Enterprise Funds 601 611 Water Seiver 2013 2012 2013 2012 $ 499,021 $ 612,892 $ 831,260 $ 828,490 Loss on disposal of capital assets - Other income 1,200 106,997 137,295 91,627 94,617 15,341 13,294 3,496 1,970 5,092 8,515 24,803 12,149 271,166 274,917 81,330 221,214 3,633 11,344 14,705 14,510 26,018 10,190 17,940 10,230 8,000 - 6,500 773 30,767 41,442 - - 78,315 75,903 9,691 8,700 - - 561,062 702,206 26,069 15,637 2,205 (443 ) 571,398 588,537 813,359 1,065,926 (72,377) 24,355 17,901 (237,436) Special assessments 37,492 Interest on investments 17,886 Loss on disposal of capital assets - Other income 1,200 Interest expense (75,630) Bond issuance costs (46,165) TOTAL NONOPERATING REVENUES (EXPENSES) (65,217) INCOME (LOSS) BEFORE CONTRIBUTIONS (137,594) CHANGE IN NET POSITION NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 19,486 - - 32,351 14,192 29,843 - (33,738) - 125,017 3,060 3,150 (100,668) - - 76,186 (16,486) 32,993 100,541 1,415 (204,443) 40,000 20,000 13,200 2,400 (97,594) 120,541 14,615 (202,043) 7,723,092 7,602,551 5,198,487 5,400,530 $ 7,625,498 $ 7,723,092 $ 5,213,102 $ 5,198,487 The notes to the financial statements are an integral part of this statement. -48- Exhibit 9 Business -type Activities - Enterprise Funds Nonmajor Enterprise Totals 2013 2012 2013 2012 $ 360,657 $ 351,516 $ 1,690,938 $ 1,792,898 47,741 64,104 246,365 296,016 3,641 16,607 22,478 31,871 3,330 30,030 33,225 50,694 33,802 32,314 386,298 528,445 19,678 19,783 38,016 45,637 171,896 297,650 215,854 318,070 - - 14,500 773 - - 30,767 41,442 - - 88,006 84,603 - - 561,062 702,206 9,384 1,071 37,658 16,265 289,472 461,559 1,674,229 2,116,022 71,185 (110,043) 16,709 (323,124) - - 37,492 19,486 835 1,941 32,913 64,135 - - (33,738) - 25,836 23,007 30,096 151,174 - - (75,630) (100,668) - - (46,165) 26,671 24,948 (55,032) 134,127 97,856 (85,095) (38,323) (188,997) - - 53,200 22,400 97,856 (85,095) 14,877 (166,597) 1,720,670 1,805,765 14,642,249 14,808,846 $ 1,818,526 $ 1,720,670 $ 14,657,126 $ 14,642,249 -49- CITY OF SHOREWOOD, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED ON THE FOLLOWING PAGES PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Other receipts related to operations Payments to suppliers, contractors and other governments Payments to employees NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Connection fees received Acquisition of capital assets Bond proceeds, net of issuance costs Bonds refunded Principal paid on revenue bonds Interest paid on revenue bonds Special assessments collected NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 Business -type Activities - Enterprise Funds 601 611 Water SeNver 2013 2012 2013 2012 $ 505,476 $ 606,162 $ 822,469 $ 825,876 1,200 103,467 3,060 3,150 (205,176) (168,499) (665,453) (760,681) (106,629) (140,529) (90,823) (98,063) 194,871 400,601 69,253 (29,718) 40,000 20,000 13,200 2,400 - - (374,284) (22,015) 2,213,835 - - - (1,035,000) - - - (185,000) (175,000) - - (83,631) (104,156) - - 24,326 45,677 - - 974,530 (213,479) (361,084) (19,615) 12,240 21,387 10,392 19,802 1,181,641 208,509 (281,439) (29,531) 4, 045 ,974 3,837,465 3,514,714 3,544,245 $ 5,227,615 $ 4,045,974 $ 3,233,275 $ 3,514,714 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and temporary investments $ 3, 805, 301 $ 3,810,729 $ 3,233,275 $ 3,514,714 Cash with fiscal agent 1,422,314 235,245 - - TOTAL CASH AND CASH EQUIVALENTS $ 5,227,615 $ 4,045974 $ 3,233,275 $ 3,514,714 The notes to the financial statements are an integral part of this statement. -50- Exhibit 10 Business -type Activities - Enterprise Funds 22,400 (59,499) (11(),9()1) (433,783) (132,916) Nonmajor Enterprise Totals 2,213,835 2013 2012 2013 2012 $ 358,898 $ 376,719 $ 1,686,843 $ 1,808,757 25,836 23,007 30,096 129,624 (203,459) (365,739) (1,074,088) (1,294,919) (47,672) (64,868) (245,124) (303,460) (59,499) 133,603 (30,881) 397,727 340,002 - - 53,200 22,400 (59,499) (11(),9()1) (433,783) (132,916) - - 2,213,835 - - - (1,035,000) - - - (185,000) (175,000) - - (83,631) (104,156) - - 24,326 45,677 (59,499) (110,901) 553,947 (343,995) 608 1,427 23,240 42,616 74,712 (140,355) 974,914 38,623 126,933 267,288 7,687,621 7,648,998 $ 201,645 $ 126,933 $ 8,662,535 $ 7,687,621 $ 201,645 $ 126,933 $ 7,240,221 $ 7,452,376 - - 1,422,314 235,245 $ 201,645 $ 126,933 $ 8,662,535 $ 7,687,621 -51- CITY OF SHOREWOOD, MINNESOTA STATEMENTS OF CASH FLOWS - CONTINUED PROPRIETARY FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 Business -type Activities - Enterprise Funds 601 611 Water SeNver RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Other income related to operations Depreciation (Increase) decrease in assets Accounts receivable Special assessments receivable Increase (decrease) in liabilities Accounts payable Due to other governments Accrued salaries payable NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Loss on disposal of capital asset Capital assets purchased on account 2013 2012 2013 2012 $ (72,377) $ 24,355 $ 17,901 $ (237,436) 1,200 103,467 3,060 3,150 271,166 274,917 81,330 221,214 6,455 (6,730) (4,965) (3,578) - - (3,826) 964 (11,499) 8,110 (27,084) (10,869) (442) (284) 2,033 283 368 (3,234) 804 (3,446) $ 194,871 $ 400,601 $ 69,253 $ (29,718) $ - $ $ 33,738 $ - $ - $ - $ - $ 41,916 The notes to the financial statements are an integral part of this statement. -52- Exhibit 10 Business -type Activities - Enterprise Funds Nonmajor Enterprise Totals 2013 2012 2013 2012 $ 71,185 $ (110,043) $ 16,709 $ (323,124) 25,836 23,007 30,096 129,624 33,802 32,314 386,298 528,445 (508) 26,224 982 15,916 (1,251) (1,021) (5,077) (57) 4,470 (598) (34,113) (3,357) - - 1,591 (1) 69 (764) 1,241 (7,444) $ 133,603 $ (30,881) $ 397,727 $ 340,002 $ - $ - $ 33,738 $ - $ - $ - $ - $ 41,916 -53- CITY OF SHOREWOOD, MINNESOTA Exhibit 11 STATEMENT OF NET POSITION FIDUCIARY FUND DECEMBER 31, 2013 ASSETS Cash and temporan- investments 00,101011119 Escrow deposits parable Agency $ 108,503 $ 108,503 The notes to the financial statements are an integral part of this statement. -54- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting entity The Cite of Shorewood, Minnesota (the Citv), operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the Cite is directed by a Cite Council composed of an elected Mayor and four elected Cite Council members. The Citv Council exercises legislative authority and determines all matters of police. The Cite Council appoints personnel responsible for the proper administration of all affairs relating to the Cite. The Cite has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the Cite are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing bode, and (1) the ability of the Cite to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the Cite. Blended component units, although legally separate entities are, in substance, part of the City's operations and so data from these units are combined with data of the Cite. The Cite has the following component unit: Blended component unit The Economic Development Authority (EDA) of the City was created pursuant to Minnesota statutes 469.090 through 469.108 to earn' out economic and industrial development and redevelopment consistent within the Cite in accordance with policies established by the Cite Council. The EDA Board is comprised of the members of the City Council and has a December 31 year end. Because the EDA's Board is the same as the Cite Council, the EDA is blended and reported in the Debt Service and capital projects funds. Separate financial statements are not issued for this component unit. B. Government -wide and fund financial statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City and its component unit. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietan- funds and fiducian' funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement focus, basis of accounting and financial statement presentation Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received b�- the Cite. -55- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the near in which the resources are measurable and become available. Non - exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the Cite must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non - exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The City reports the following major governmental funds The General f end is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Debt Service fund accounts for the resources accumulated and payments made for principal and interest on long -term general obligation debt of governmental funds. The Street Reconstruction fund accounts for the resources accumulated and payments made for the periodic reconstruction of Citv streets and roadways. The Trail Construction fund accounts for the resources accumulated and payments made for trail improvements and construction. The City reports the following major proprietan- funds: The 11'wer fund accounts for the activities of the City 's water distribution system. The Server fiend accounts for the activities of the City's sewage collection system. Additionally, the City reports the following fund types: The fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. This fund is used to account for assets that the City holds for certain residents, developers, and other parties that are involved with escrow related projects within the City. As a general rule the effect of interfund activity has been eliminated from government -wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and other charges between the City's water and seiner function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. -56- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Proprietan' funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietany fund's principal ongoing operations. The principal operating revenues of the water, seiner, recycling and storrawater management utility enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, liabilities, deferred inflows of resources, and net position /fund balance Deposits and investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City many invest idle funds as authorized bey Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated "A" or better: revenue obligations rated "AA" or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 6. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality categon- by at least two nationally recognized rating agencies, and maturing in 270 days or less. 7. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a "depositor" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. 8. Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiar , whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Investments for the City are reported at fair value. Earnings on investments are allocated to the individual funds based upon the average cash and investment balances. -57- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property taxes The Cite Council annually adopts a tax levy in December and certifies it to the County for collection in the following near. The County is responsible for collecting all property taxes for the Cite. These taxes attach an enforceable lien on taxable property within the City on January 1 and are parable by the property owners in two installments. The taxes are collected by the County Auditor and tax settlements are made to the City during January, Jule and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for delinquent taxes not received within 60 days after year end in the governmental fund financial statements. Accounts receivable Accounts receivable include amounts billed for services provided before year end. All trade receivables are shown net of an allowance for uncollectible accounts. The allowance for uncollectible accounts at December 31, 2013 is $27,319. Unbilled utility enterprise fund receivables are also included for services provided in 2013. The Cite annually certifies delinquent water and seiner accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established in the Enterprise funds. .Special assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Interfund receivables and payables Transactions between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal near are referred to as either " interfund receivables /pay able s" (i.e., the current portion of interfund loans) or ``advances to /from other funds" (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Prepaid items Certain pavinents to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items of the City are accounted for using the consumption method. -58- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Capital assets Capital assets, which include property-, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. For financial statement purposes only, a capitalization threshold is established for each capital asset categon- as follows: Assets Threshold Land and land improvements $ 10,000 Other improvements 25,000 Buildings 25,000 Building improvements 25,000 Machineiv and equipment 5,000 Vehicles 5,000 Infrastructure 100,000 Other assets 5,000 In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include items dating back to June 30, 1980. The City was able to estimate the historical cost for the initial reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price -level index to deflate the cost to the acquisition year or estimated acquisition rear). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. Property, plant and equipment of the City, are depreciated using the straight -line method over the following estimated useful lives: Useful Lives Assets in Years Land improvements 15-20 Buildings and improvements 7-40 System improvements /infrastructure 20-50 Machinen- and equipment 5 - 15 Vehicles 5 - 15 -59- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Deferred inflows of resources In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property tales, lease receivable, and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts are received. Compensated absences It is the City's police to permit employees to accumulate a portion of earned but unused vacation and sick pay benefits. Accumulated vacation and sick pay are accrued when incurred in the government -wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. In the case of an employee leaving, the General fund would be responsible for liquidation of the liability. Postemployment benefits other than pensions Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue coverage indefinitely in an employer- sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may- obtain dependent coverage immediately before retirement. All premiums are funded on a pay -as- you -go basis. It was determined, in accordance with GASB Statement 45, at December 31, 2013 that the City has a zero liability. Long -term obligations In the government -wide financial statement and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietan' fund type statement of net position. The recognition of bond premiums and discounts are amortized over the life of the bonds using the straight -line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. -60- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Fund balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the Cite is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items and land held for resale. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors: or constraints imposed by state statutory- provisions. Commtted - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City's highest level of decision- making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally- imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City Administrator. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain a minimum unassigned fund balance of 55 -60 percent of operating expenditures for cash -flow timing needs. Net position Net position represents the difference between assets and liabilities. Net position is displayed in three components a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position - Consist of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position - All other net position balances that do not meet the definition of "restricted" or "net investment in capital assets ". Comparative data /reclassifications Comparative total data for the prior year have been presented only for individual enterprise funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current rear's presentation. -61- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund. All annual appropriations lapse at fiscal year end. The Cite does not use encumbrance accounting. In August of each year, all departments of the Cite submit requests for appropriations to the Cite Administrator so that a budget may be prepared. Before September 15`11, the proposed budget is presented to the City Council for review. In earb, December, the Cite Council holds public hearings and a final budget is prepared and adopted. The appropriated budget is prepared by fund, function and department. The City's department heads, with the approval of the Cite Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. The Cite made amendments to the General fund budget during the year which increased the expenditure budget by $1,000 in the Culture and Recreation department. Note 3: DETAILED NOTES ON ALL FUNDS A. Deposits and investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the Cite maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all Cite deposits be protected by insurance, surety bond or collateral. The fair value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasure bills, Treasure notes, Treasure bonds: • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity: • General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service: • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity: • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation: and • Time deposits that are fully insured by any Federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. -62- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED At rear end, the City's carry -ing amount of deposits was $232,001 and the bank balance was $300,991. The entire bank balance was covered by Federal depositor- insurance or by collateral held by the City's agent in the City's name. A reconciliation of cash and temporar- investments as shown on the financial statements for the City follows: Priman- Government Carn -ing amount of deposits $ 232,001 Investments 15,246,061 Cash on hand 120 Total $ 15,478,182 As reported on the financial statements Statement of net position $ 13,947,365 Cash with fiscal agent 1,422,314 Fiduciary- fund 108,503 Total $ 15,478,182 -63- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Investments The Minnesota Municipal Money- Market fund (the 4M fund) is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M fund is a unique investment alternative designed to address the daily and long -term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota statutes, the 4M fund is comprised of top quality, rated investments. The Minnesota Municipal Money- Market fund and broker money- market investment pools operate in accordance with appropriate State laws and regulations. The 4M fund is an external investment pool not registered with the Securities and Exchange Commission (SEC): however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the pool is the same as the fair value of the pool share. Financial statements of the 4M fund can be obtained by contracting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402 -1240. At year end, the City had the following investments that are insured or registered, or securities held by the City's agent in the City's name: (1) Ratings are provided by various credit ratings agencies where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. -64- Fair Value Credit Segmented and Quality/ Time Carn-ing Types of Investments Rating (1) Distribution (2) Amount Non Pooled investments U.S. Government Agency Securities AAA more than 3 rears $ 1,481,452 U. S. Government Agency Securities AA+ more than 3 rears 988,468 Municipal Bonds AA less than 6 months 460,777 Municipal Bonds AA less than 1 rear 1,476,957 Municipal Bonds A I to 3 years 1,117,621 Municipal Bonds AA 1 to 3 rears 1,802,459 Municipal Bonds AAA 1 to 3 rears 269,487 Municipal Bonds A more than 3 rears 949,591 Municipal Bonds AA more than 3 rears 1,270,594 Municipal Bonds Aa2 more than 3 rears 295,014 Brokered Certificates of Deposit N/A less than 6 months 485,404 Brokered Certificates of Deposit N/A 6 to 12 months 244,703 Brokered Certificates of Deposit N/A 1 to 3 rears 248,929 Total non pooled 11,091,456 Pooled investments Minnesota Municipal Money- Market fund N/A less than 6 months 2,461,186 Broker Money- Market N/A less than 6 months 1,693,419 Total pooled 4,154,605 Total investments $ 15,246,061 (1) Ratings are provided by various credit ratings agencies where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. -64- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED The investments of the City are subject to the following risks: • Credit Risk. Credit risk is the risk that an issuer or other counterparts to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the City's investment policy limit the City's investments to the list on page 62 of the notes. Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. In accordance with the City's investment policy, the investment officer shall structure all investments, deposits and repurchase agreements so that the custodial risk is categorized as either insured or registered, or securities held by the City or its agent in the City's name or uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. All investments are placed in safekeeping at financial institutions. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. In accordance with the City's investment policy, the City diversifies its investment portfolio to eliminate the risk of loss resulting from over- concentration of assets in a specific maturity, a specific issuer or a specific class of securities. As of December 31, 2012 the City had invested 5.0 percent or more of its total investment portfolio in the following issuers: Columbia County GA, 5.9 percent, and Illinois State Taxable, 5.5 percent. • Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy and also detailed in the description of concentration of credit risk, the City manages its exposure to declines in fair values by " laddering" their investment maturities to ensure that a portion of the portfolio is maturing monthly, or as needed to meet projected expenditures. The City also permits no more than 30 percent of total investments to extend beyond five (5) years and does not directly invest in securities maturing more than 15 years from the date of purchase. -65- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED B. Capital assets Capital asset activity for the year ended December 31, 2013 was as follows: Beginning Balance Increases Governmental activities Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated Buildings Improvements other than buildings Infrastructure Machinen- and equipment Total capital assets being depreciated Less accumulated depreciation Buildings Improvements other than buildings Infrastructure Machinen- and equipment Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net 741,826 741,826 1,565,510 1,565,510 Ending Decreases Balance $ - $ 741,826 - 1,565,510 - 2,307,336 3,373,870 - (307,868) 3,066,002 1,012,469 - - 1,012,469 27,836,891 86,457 - 27,923,348 2,807,416 236,430 (169,138) 2,874,708 35,030,646 322,887 (477,006) 34,876,527 (1,034,056) (84,212) 67,667 (1,050,601) (686,527) (38,574) - (725,101) (22,331,596) (687,736) - (23,019,332) (2,093,131) (162,421) 169,138 (2,086,414) (26,145,310) (972,943) 236,805 (26,881,448) 8,885,336 (650,056) (240,201) 7,995,079 $ 9,627,162 $ 915,454 $ (240,201) $ 10,302,415 -66- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Beginning Ending Balance Increases Decreases Balance Business -type activities Capital assets not being depreciated Land $ 434,113 $ - $ - $ 434,113 Construction in progress 63,931 332,368 (396,299) - Total capital assets not being depreciated 498,044 332,368 (396,299) 434,113 Capital assets being depreciated Infrastructure 20,014,068 455,798 (68,042) 20,401,824 Machinen- and equipment 83,254 - - 83,254 Total capital assets being depreciated 20,097,322 455,798 (68,042) 20,485,078 Less accumulated depreciation for Infrastructure (11,522,367) (381,967) 34,304 (11,870,030) Machinery- and equipment (78,923) (4,331) - (83,254) Total accumulated depreciation (11,601,290) (386,298) 34,304 (11,953,284) Total capital assets being depreciated, net 8,496,032 69,500 (33,738) 8,531,794 Business-type activities capital assets, net $ 8,994,076 401,868 (430,037) 8,965,907 Depreciation expense was charged to functions /programs of the City as follows: Governmental activities General government $ 58,915 Public works 852,179 Culture and recreation 61,849 Total depreciation expense - governmental activities $ 972,943 Business -type activities Water $ 271,166 Server 81,330 Storrawater management utility 33,802 Total depreciation expense - bu sine ss -ty pe activities $ 386,298 -67- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Construction commitments The Cite has active construction projects as of December 31, 2013. At year end, the commitment with the contractors for these projects is as follows: Project Vallevivood Street Reconciliation Smithtown Road Trail Project Total C. Interfund transfers The Cite made transfers during the fiscal year 2013 as shown and described belmi Spent Remaining to date Commitment $ 145,842 $ 62,139 989,500 118,899 $ 1,135,342 $ 181,038 The Cite annually budgets transfers for specific purposes. Annual transfers are made as part of capital improvement plans as well as annual budgets. For the year ended December 31, 2013, the Citv made the following one -time transfers: • The General fund transferred $44,000 to the Southshore Community Center fund for cash flow purposes. • The Community Infrastructure fund transferred $174,000 to the Trail Reconstruction fund for cash flow purposes. D. Long -term debt General obligation bonds The Cite issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business -type activities. These bonds are reported in the proprietary funds if they are elpected to be repaid from proprietary fund revenues. In addition, general obligation bonds have been issued to refund special assessments related bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the Cite. The Cite has the following general obligation debt: -68- Transfers in Street Trail Nonmajor Fund Debt Service Reconstruction Construction Governmental Total Transfers out General $ 100,450 $ 714,000 $ - $ 192,200 $ 1,006,650 Nonmajor governmental - - 1,476,000 - 1,476,000 Total $ 100,450 $ 714,000 $ 1,476,000 $ 192,200 $ 2,482,650 The Cite annually budgets transfers for specific purposes. Annual transfers are made as part of capital improvement plans as well as annual budgets. For the year ended December 31, 2013, the Citv made the following one -time transfers: • The General fund transferred $44,000 to the Southshore Community Center fund for cash flow purposes. • The Community Infrastructure fund transferred $174,000 to the Trail Reconstruction fund for cash flow purposes. D. Long -term debt General obligation bonds The Cite issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business -type activities. These bonds are reported in the proprietary funds if they are elpected to be repaid from proprietary fund revenues. In addition, general obligation bonds have been issued to refund special assessments related bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the Cite. The Cite has the following general obligation debt: -68- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED General obligation revenue bonds The following bonds were issued to finance capital improvements in the enterprise funds. They will be repaid from future net revenues pledged from the Water fund and are backed by the taxing power of the Cite. Annual principal and interest payments on the bonds are expected to require less than 20 percent of the net revenues from the Water fund. Principal and interest paid for the current year and total customer net revenues for the Water fund were $101,369 and $499,021, respectively. Annual debt service requirements to maturity for general obligation revenue bonds are as follows G.O. Revenue Bonds Year Ending Business -type Activities Balance December 31, Authorized Interest Issue Maturity at Description and Issued Rate Date Date Year End G. O. Water Revenue 265,000 16,182 281,182 2018 270,000 14,375 284,375 Bonds of 2006 1,450,000 4.00 11/29/06 01/01/14 $ 1,280,000 G. O. Water Revenue 3.75 - 5.00 01/01/07 02/01/22 1,175,000 Bonds of 2013 2,260,000 0.25- 1.45 03/01/13 01/01/22 2,260,000 Total G.O. Revenue Bonds $ 3,540,000 Annual debt service requirements to maturity for general obligation revenue bonds are as follows Lease revenue bonds The Cite also issues bonds where the Cite pledges income derived from the leasing of the acquired or constructed assets to pay debt service. Revenue bonds outstanding at year end are as follows: Description Public Safety Fire Facility, Refunding Series 2007A Public Safety Police Facility, Refunding Series 20078 Public Safetv Fire Facilitv, Refunding Series 20070 Public Project Lease Revenue Bonds, Series 2008A Total Lease Revenue Bonds G.O. Revenue Bonds Year Ending Business -type Activities Balance December 31, Principal Interest Total 2014 $ 1,380,000 $ 51,425 $ 1,431,425 2015 260,000 18,757 278,757 2016 265,000 17,640 282,640 2017 265,000 16,182 281,182 2018 270,000 14,375 284,375 2019 - 2022 1,100,000 29,174 1,129,174 Total $ 3,540,000 $ 147,553 $ 3,687,553 Lease revenue bonds The Cite also issues bonds where the Cite pledges income derived from the leasing of the acquired or constructed assets to pay debt service. Revenue bonds outstanding at year end are as follows: Description Public Safety Fire Facility, Refunding Series 2007A Public Safety Police Facility, Refunding Series 20078 Public Safetv Fire Facilitv, Refunding Series 20070 Public Project Lease Revenue Bonds, Series 2008A Total Lease Revenue Bonds Balance Authorized Interest Issue Maturity at and Issued Rate Date Date Year End 4,130,000 5.30 - 5.40 % 01/01/07 02/01/23 $ 3,225,000 4,285,000 3.50-4.25 01/01/07 02/01/23 3,350,000 1,585,000 3.75 - 5.00 01/01/07 02/01/22 1,175,000 1,310,000 2.85-4.80 08/19/08 12/01/28 1,090,000 8,840,000 -69- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED The Public Safety Fire Facility Refunding Series 2007A, 200713 and 20070 were issued for construction of the public safety building, which there is a lease receivable from the South Lake Minnetonka Police and Excelsior Fire District. This debt is excluded from the calculation of net position invested in capital assets, net of related debt as the building is reported on the South Lake Minnetonka Police and Excelsior Fire District as a capital asset. Refer to Note 5 A and B for further information. Annual debt service requirements to maturity for revenue bonds are as follows: Total $ 9,696,762 $ 153,433 $ (825,470) $ 9,024,725 $ 857,922 Business -type activities General obligation revenue bonds $ 2,500,000 $ 2,260,000 $ (1,220,000) $ 3,540,000 $ 1,380,000 Refunding On March 6, 2013, the City issued $2,260,000 of water revenue bonds. The bond issue was a current refunding of the G.O. Water Revenue Bonds of 2005 and a crossover refunding of the G.O. Water Revenue Bonds of 2006. The new bonds have an average coupon rate of 1.04 percent compared to the 4.16 and 4.00 percent average coupon rates on the old bonds, respectively. The proceeds of the new bonds pertaining to the 2005 bonds were used to refund those bonds on March 6, 2013. The proceeds of the new bonds pertaining to the 2006 bonds are held in an escrow account pending the call date of January 1, 2014. The 2006 bonds are not defeased until the crossover date, and therefore will not be removed as a liability until that date. As a result of the refunding issue, the City will save $340,535 in debt service payments and achieve an economic gain (the present value of the difference between the old and the new debt service) of $306,132. -70- Lease Revenue Bonds Year Ending Governmental Activities December 31, Principal Interest Total 2014 $ 705,000 $ 356,227 $ 1,061,227 2015 735,000 325,081 1,060,081 2016 770,000 290,863 1,060,863 2017 800,000 257,068 1,057,068 2018 830,000 225,287 1,055,287 2019 - 2023 4,555,000 586,107 5,141,107 2024 - 2028 445,000 65,400 510,400 Total $ 8,840,000 $ 2,106,033 $ 10,946,033 Changes in long -term liabilities Long -term liability activity for the year ended December 31, 2013, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities Lease revenue bonds $ 9,515,000 $ - $ (675,000) $ 8,840,000 $ 705,000 Compensated absences 181,762 153,433 (150,470) 184,725 152,922 Total $ 9,696,762 $ 153,433 $ (825,470) $ 9,024,725 $ 857,922 Business -type activities General obligation revenue bonds $ 2,500,000 $ 2,260,000 $ (1,220,000) $ 3,540,000 $ 1,380,000 Refunding On March 6, 2013, the City issued $2,260,000 of water revenue bonds. The bond issue was a current refunding of the G.O. Water Revenue Bonds of 2005 and a crossover refunding of the G.O. Water Revenue Bonds of 2006. The new bonds have an average coupon rate of 1.04 percent compared to the 4.16 and 4.00 percent average coupon rates on the old bonds, respectively. The proceeds of the new bonds pertaining to the 2005 bonds were used to refund those bonds on March 6, 2013. The proceeds of the new bonds pertaining to the 2006 bonds are held in an escrow account pending the call date of January 1, 2014. The 2006 bonds are not defeased until the crossover date, and therefore will not be removed as a liability until that date. As a result of the refunding issue, the City will save $340,535 in debt service payments and achieve an economic gain (the present value of the difference between the old and the new debt service) of $306,132. -70- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 4: DEFINED BENEFIT PENSION PLAN - STATEWIDE A. Plan description All full -time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF), which is a cost - sharing, multiple - employer retirement plan. This plan is established and administered in accordance with Minnesota statutes, chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by Minnesota statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and rears of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.20 percent of average salary for each of the first 10 years of service and 2.70 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.20 percent of average salary for each of the first 10 years and 1.70 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.70 percent of average salary for Basic Plan members and 1.70 percent for Coordinated Plan members for each year of service. GERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree --no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apple to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF. That report may be obtained on the Internet at mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or bv calling (651) 296 -7460 or (800) 652 -9026. B. Funding police Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the Minnesota legislature. The City makes annual contributions to the pension plans equal to the amount required by Minnesota statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.10 percent and 6.25 percent, respectively, of their annual covered salary in 2012 and 2013. In 2012 and 2013, the City was required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members and 7.25 percent for Coordinated Plan GERF members. The City's contributions to the GERF for the years ending December 31, 2013, 2012 and 2011 were $86,064, $99,677, and $100,570, respectively. The City's contributions were equal to the contractually required contributions for each year as set by Minnesota statute. -71- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 5: JOINT VENTURES A. South Lake Minnetonka Police Department The City participates in a joint powers agreement with the cities of Excelsior, Greenwood and Tonka Bay, which establishes the South Lake Minnetonka Police Department (the Department) for the purpose of providing police protection within the four communities. The agreement creates a coordinating committee, comprised of the Mayors of each participating community, as the governing bode, which meets quarterly. Each year, the coordinating committee adopts an operating budget, which is approved by all participating cities. The cost of the operating budget is divided between the participating cities based upon a fire -year average demand for service in each Cite. Any budget shortfall is made up first from department reserves, with any excess shortfall assessed to each participating community according to the formula. The most recent year of audited information is December 31, 2013. Separate financial statements can be obtained by writing to the South Lake Minnetonka Police Department, 24150 Smithtown Road, Shorewood, Minnesota 55331. The following is a summary- of the Department's Statement of Net Position as of December 31, 2013 and 2012: Assets Liabilities Net position Total liabilities and net position SOUTH LAKE MINNETONKA POLICE DEPARTMENT SUMMARY OF STATEMENTS OF NET POSITION DECEMBER 31, 2013 AND 2012 201 i 2() 12 $ 5,214,361 $ 5,296,193 $ 3,639,122 $ 3,895,391 1,575,239 1,400,802 $ 5,214,361 $ 5,296,193 The following is a summary- of the Department's statement of activities for the years ended December 31, 2013 and 2012: Revenues Expenses Net revenues General revenues Change in net position Net position, Januan' 1 Net position, December 31 SOUTH LAKE MINNETONKA POLICE DEPARTMENT SUMMARY STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 -72- 201 i 2()12 2,792,683 $ 2,691,104 2,630,842 2,558,191 161,841 132,913 12,596 25,437 174,437 158,350 1,400,802 1,242,452 $ 1,575,239 $ 1,400,802 CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 5: JOINT VENTURES - CONTINUED B. Excelsior Fire District In August of 2000, the cities of Deephaven, Excelsior, Greenwood, Shorewood and Tonka Bay entered a joint powers agreement to provide fire protection and medical response service to their residents and created an entity called the Excelsior Fire District (the District). The Board of Directors is comprised of ten members and five alternate members. Each Member Cite appoints two representatives on the Board of Directors and one alternate. The City is billed for service based on a formula that determines its share of the total expenditures. Separate financial statements can be obtained by writing to the Excelsior Fire District, 24100 Smithtown Road, Shorewood, Minnesota 55331. The following is a summary- of the District's Statement of Net Position as of December 31, 2013 and 2012: EXCEL SIOR FIRE DISTRICT SUMMARY OF STATEMENTS OF NET POSITION DECEMBER 31, 2013 AND 2012 Assets Liabilities Net position Total liabilities and net position 2n1i 2n12 $ 8,070,939 $ 8,105,724 $ 4,956,613 $ 5,277,656 3,114,326 2,828,068 $ 8,070,939 $ 8,105,724 The following is a summary, of the District's statement of activities for the years ended December 31, 2013 and 2012: Revenues Expenses Net revenues General revenues Change in net position Net position, Januan' 1 Net position, December 31 EXCEL SIOR FIRE DISTRICT SUMMARY STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 201 i 2()12 $ 1,565,399 $ 1,557,428 1,294,952 1,251,845 270,447 305,583 15,811 2,381 286,258 307,964 2,828,068 2,520,104 $ 3,114,326 $ 2,828,068 According to a formula in the agreement, the City's share of the District's budget is 38.48 percent. Payments to the District in 2013 totaled $608,800. The District issues a publicly available financial report that includes financial statements and required supplementary- information. The report may be obtained by writing to the Excelsior Fire District, 24100 Smithtown Road, Shorewood, Minnesota 55331 -73- CITY OF SHOREWOOD, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2013 Note 6: OTHER INFORMATION A. Risk management The City is exposed to various risks of loss related to torts: theft of, damage to and destruction of assets: errors and omissions: injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust ( LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The Cite pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self- sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal rears. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. B. Legal debt margin The City's statutory debt limit is $41,196,483 computed as three percent of $1,373,216,084, which is the taxable market value of property within the City. Long -term debt issued and financed partially or entirely by special assessments, tax increments or the net revenues of enterprise fund operations is excluded from the debt limit computation. The City has no debt that is subject to the statutory debt limit. C. Southshore Community Center On July 1, 2009, the City entered into an agreement to take over operations of the Southshore Community Center. The Cite also contracted with Community Recreation Resources (CRR) for the operation, management, and programming of the Southshore Community Center. The contract with CRR was for the period of July 1, 2009 to July 1, 2012 with an option to renew for another three years or renegotiate. The contract was re- negotiated in January, 2012. The Cite agreed to pay CRR $5,000 per month for the period of January 1, 2012 to December 31, 2012. During this time, the Cite paid a 15 percent commission on monthly revenues to CRR. A quarterly bonus commission of five percent was due if the quarterly program and rental income exceeded $13,500. The contract was subsequently extended on a month by month basis through March 31, 2013 when CRR ceased to provide services as the Southshore Community Center management company. -74- COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF SHOREWOOD SHOREWOOD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 -75- THIS PAGE IS LEFT BLANK INTENTIONALLY -76- NONMAJOR GOVERNMENTAL FUNDS NONMAJOR SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenue derived from specific tales or other earmarked revenue sources. They are usually required by Minnesota statute or local ordinances to finance particular functions or other activities of government. Southshore Community Center - This fund was established to account for the resources accumulated from events and activities held at the Citv's community center, and the payment of expenditures related to operations of the community center. The Cite has committed charges for services revenues for operations. -77- CITY OF SHOREWOOD, MINNESOTA Exhibit A -1 NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2013 Special -78- Southshore Total Community Capital Nonmajor Center Projects Funds ASSETS Cash and temporan_- investments $ 4,680 $ 564,120 $ 568,800 Receivables Accrued interest - 11,326 11,326 Lease - 405,959 405,959 Land held for resale - 150,068 150,068 TOTAL ASSETS $ 4,680 $ 1,131,473 $ 1,136,153 LIABILITIES Accounts and contracts parable $ 4,103 $ 7,768 $ 11,871 Accrued salaries payable 108 - 108 TOTAL LIABILITIES 4,211 7,768 11,979 FUND BALANCES Nonspendable land held for resale - 150,068 150,068 Assigned to capital outlay - 973,637 973,637 Assigned to community center operations 469 - 469 TOTAL FUND BALANCES 469 1,123,705 1,124,174 TOTAL LIABILITIES AND FUND BALANCES $ 4,680 $ 1,131,473 $ 1,136,153 -78- CITY OF SHOREWOOD, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2013 Special REVENUES Charges for services Interest on investments Miscellaneous Park dedication fees Contributions and donations Other rmr_Is:ULvNOwO EXPENDITURES Current Public works Culture and recreation Capital outlay Public works Culture and recreation TOTAL EXPENDITURES DEFICIENCY OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) 1110 = am 111-111m m III Mal P11 U-11 WHOM 0 FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 -79- Exhibit A -2 Southshore 265,739 Total Community Capital Nonmajor Center Projects Funds $ 41,720 $ - $ 41,720 - 15,537 15,537 - 55,000 55,000 10,171 - 10,171 2,151 - 2,151 54,042 70,537 124,579 - 7,404 7,404 104,524 - 104,524 - 265,739 265,739 - 56,576 56,576 104,524 329,719 434,243 (50,482) (259,182) (309,664) 91,700 100,500 192,200 - (1,476,000) (1,476,000) 91,700 (1,375,500) (1,283,800) 41,218 (1,634,682) (1,593,464) (40.749) 2,758,387 2,717,635 $ 469 $ 1,123,705 $ 1,124,174 THIS PAGE IS LEFT BLANK INTENTIONALLY -90- NONMAJOR CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Park Capital Improvement - This fund accounts for park land acquisition and other capital improvements in the Cite parks. Equipment Replacement - This fund was established for the purpose of funding the replacement of capital equipment. MSA Construction - This fund was established to account for the accumulation of Municipal State Aid (MSA) to fund the periodic reconstruction of MSA designated roads. Communitv Infrastructure - This fund was established for the purpose of funding future improvements in the Cite. -81- -82- CITY OF SHOREWOOD, MINNESOTA Exhibit B -1 NONMAJOR CAPITAL PROTECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2013 402 403 405 450 Park Capital Equipment MSA Communitv Improvement Replacement Construction Infrastructure Total ASSETS Cash and temporary investments $ 220,109 $ 6,775 $ 126,387 $ 210,849 $ 564,120 Receivables Accrued interest 1,025 529 714 9,058 11,326 Lease - 405,959 - - 405,959 Land held for resale - - - 150,068 150,068 TOTAL ASSETS $ 221,134 $ 413,263 $ 127,101 $ 369,975 $ 1,131,473 LIABILITIES Accounts and contracts payable $ 7,768 $ - $ - $ - $ 7,768 FUND BALANCES Nonspendable land held for resale - - - 150,068 150,068 Assigned to capital outlay 213,366 413,263 127,101 219,907 973,637 TOTAL FUND BALANCES 213,366 413,263 127,101 369,975 1,123,705 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESROUCES $ 221,134 $ 413,263 $ 127,101 $ 369,975 $ 1,131,473 AND FUND BALANCES -82- CITY OF SHOREWOOD, MINNESOTA NONMAJOR CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2013 402 403 405 Park Capital Equipment MSA Improvement Replacement Construction _ REVENUES Interest on investments $ 966 $ 6,809 $ 568 Miscellaneous Park dedication fees TOTAL REVENUES EXPENDITURES Current Public works Capital outlay Public works Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 55,966 6,809 - 265,739 53,027 - 53,027 265,739 450 Community Exhibit B -2 Total 7,194 $ 15,537 - 55,000 568 7,194 70,537 7,404 - 7,404 - - 265,739 - 3,549 56,576 7,404 3,549 329,719 2,939 (258,930) (6,836) 3,645 (259,182) 42,000 58,500 - - 100,500 - - - (1,476,000) (1,476,000) 42,000 58,500 - (1,476,000) (1,375,500) 44,939 (200,430) (6,836) (1,472,355) (1,634,682) 168,427 613,693 133,937 1,842,330 2,758,387 $ 213,366 $ 413,263 $ 127,101 $ 369,975 $ 1,123,705 -83- THIS PAGE IS LEFT BLANK INTENTIONALLY -94- NONMAJOR PROPRIETARY FUNDS NONMAJOR ENTERPRISE FUNDS Enterprise funds are used to account for fund activities of the Cite that operate in a manner similar to private businesses. Recycling - This fund accounts for the activities of the City's recycling program. Stormwater Management Utility - This fund accounts for the activities of the City's stoninvater management system. -85- CITY OF SHOREWOOD, MINNESOTA NONMAJOR PROPRIETARY FUNDS COMBINING STATEMENTS OF NET POSITION DECEMBER 31, 2013 AND 2012 ASSETS CURRENT ASSETS Cash and temporary- investments Receivables Accrued interest Accounts Special assessments NONCURRENT ASSETS Special assessments receivable Capital assets Land Infrastructure Less accumulated depreciation NET CAPITAL ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Accounts and contracts payable Accrued salaries parable TOTAL LIABILITIES NET POSITION Net investment in capital assets Unrestricted TOTAL NET POSITION Business -type Activities - Enterprise Funds 621 631 Recycling Storraivater Management Utility 2013 2012 2013 2012 $ 52,716 $ 44,454 $ 148,929 $ 82,479 306 225 775 629 42,924 42,440 51,354 51,330 1,040 737 1,662 1,753 96,986 87,856 202,720 136,191 5,778 4,992 7,035 6,782 - - 434,113 434,113 - - 1,352,076 1,292,577 - - (271,743) (237,941) - - 1,514,446 1,488,749 5,778 4,992 1,521,481 1,495,531 102,764 92,848 1,724,201 1,631,722 - 412 8,370 3,488 69 - - - 69 412 8,370 3,488 - - 1,514,446 1,488,749 102,695 92,436 201,385 139,485 $ 102,695 $ 92,436 $ 1,715,831 $ 1,628,234 -86- Exhibit C -1 Totals 2013 2012 $ 201.645 $ 126,933 1,081 854 94,278 93,770 2,702 2,490 299,706 224,047 12,813 11,774 434,113 434,113 1,3 52,076 1,292, 577 (271,743) (237,941) 1,514,446 1,488,749 1,527,259 1,500,523 1,826, 965 1,724, 570 8,370 3,900 69 - 8,439 3,900 1,514,446 1,488,749 304,080 231,921 $ 1,818,526 $ 1,720,670 -87- CITY OF SHOREWOOD, MINNESOTA NONMAJOR PROPRIETARY FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 OPERATING REVENUES Charges for services OPERATING EXPENSES Personal services Supplies Repairs and maintenance Depreciation Professional services Contracted services Other TOTAL OPERATING EXPENSES OPERATING GAIN (LOSS) NONOPERATING REVENUES Interest on investments Other income TOTAL NONOPERATING REVENUES NET POSITION, JANUARY 1 NET POSITION, DECEMBER 31 Bu sine ss -ty pe Activities - Enterprise Funds 621 631 Recycling Storraivater Management Utility $ 165,713 $ 157,585 $ 194,944 $ 193,931 3,538 6,493 44,203 57,611 1,491 14,922 2,150 1,685 - - 3,330 30,030 - - 33,802 32,314 - - 19,678 19,783 167,345 166,162 4,551 131,488 9,163 136 221 935 181,537 187,713 107,935 273,846 (15,824) (30,128) 87,009 (79,915) 253 529 582 1,412 25,830 23,007 6 - 26,083 23,536 588 1,412 10,259 (6,592) 87,597 (78,503) 92,436 99,028 1,628,234 1,706,737 $ 102,695 $ 92,436 $ 1,715,831 $ 1,628,234 -88- Exhibit C -2 Bu sine ss -ty pe Activities - Enterprise Funds Totals 2013 2012 $ 360.657 $ 351,516 47,741 64,104 3,641 16,607 3,330 30,030 33,802 32,314 19,678 19,783 171,896 297,650 9384 1.071 289,472 461,559 71,185 (110,043) 835 1,941 25,836 23,007 26,671 24,948 97,856 1,720,670 (85,095) 1,805,765 $ 1,818,526 $ 1,720,670 -89- CITY OF SHOREWOOD, MINNESOTA NONMAJOR PROPRIETARY FUNDS COMBINING STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Other receipts related to operations Payments to suppliers, contractors and other governments Payments to employees NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Other income related to operations Depreciation (Increase) decrease in assets Accounts receivable Special assessments receivable Increase (decrease) in liabilities: Accounts parable Accrued salaries parable NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Bu sine ss -ty pe Activities Enterprise Funds 621 631 Recycling Storraivater Management Utility 2013 2012 2013 2012 $ 164,140 $ 155,320 $ 194,758 $ 221,399 25,830 23,007 6 - (178,411) (180,808) (25,048) (184,931) (3,469) (6,569) (44,203) (58,299) 8,090 (9,050) 125,513 (21,831) - - (59,499) (110,901) 25,830 23,007 6 172 358 436 1,069 32,314 (484) (1,903) (24) 8,262 (8,692) 66,450 (131,663) 44,454 53,146 82,479 214,142 $ 52,716 $ 44,454 $ 148,929 $ 82,479 $ (15,824) $ (30,128) $ 87,009 $ (79,915) 25,830 23,007 6 - - - 33,802 32,314 (484) (1,903) (24) 28,127 (1,089) (362) (162) (659) (412) 412 4,882 (1,01()) 69 (76) - (688) $ 8,090 $ (9,050) $ 125,513 $ (21,831) -90- Exhibit C -3 Bu sine ss -ty pe Activities - Enterprise Funds Totals 2013 2012 $ 358,898 $ 376,719 25,836 23,007 (203,459) (365,739) (47,672) (64,868) 133,603 (30,881) (59,499) (110,901) 608 1,427 74,712 (140,355) 126,933 267,288 $ 201,645 $ 126,933 $ 71,185 $ (110,043) 25,836 23,007 33,802 32,314 (508) 26,224 (1,251) (1,021) 4,470 (598) 69 (764) $ 133,603 $ (30,881) -91- -92- CITY OF SHOREWOOD, MINNESOTA Exhibit D -1 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED ON THE FOLLOWING PAGES FOR THE YEAR ENDED DECEMBER 31, 2013 (With comparative actual amounts for the near ended December 31, 2012) 2013 2012 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts REVENUES Tales General property tales $ 4,659,793 $ 4,659,793 $ 4,660,946 $ 1,153 $ 4,670,529 Fiscal disparities 103,526 103,526 103,526 - 113,410 Total 4,763,319 4,763,319 4,764,472 1,153 4,783,939 Licenses and permits Business 13,850 13,850 19,597 5,747 15,866 Nonbusiness 110,350 110,350 185,003 74,653 159,221 Total 124,200 124,200 204,600 80,400 175,087 Intergovernmental State Property tax credits - - 26 26 245 Other 70,401 70,401 76,518 6,117 75,857 Total 70,401 70,401 76,544 6,143 76,102 Charges for services General government 5,650 5,650 (3,544) (9,194) 21,928 Culture and recreation 29,500 29,500 54,373 24,873 39,683 Total 35,150 35,150 50,829 15,679 61,611 Fines and forfeitures 57,000 57,000 59,294 2,294 66,230 Interest on investments 35,000 35,000 12,911 (22,089) 25,602 Miscellaneous revenue Refunds and reimbursements 10,000 10,000 46,838 36,838 67,032 Contributions and donations - - 3,070 3,070 3,514 Other 168,900 168,900 144,569 (24,331) 47,278 Total 178,900 178,900 194,477 15,577 117,824 TOTAL REVENUES 5,263,970 5,263,970 5,363,127 99,157 5,306,395 -92- CITY OF SHOREWOOD, MINNESOTA Exhibit D -1 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With comparative actual amounts for the near ended December 31, 2012) 2013 2012 Budgeted Amounts Actual Variance with Actual Final Final Amounts Final Budget Amounts EXPENDITURES Current General government Mavor and Council Personal services $ 16,800 $ 16,800 $ 16,794 $ 6 $ 16,794 Supplies 2,000 2,000 2,035 (35) 887 Other services and charges 72,450 72,450 90,885 (18,435) 80,309 Total 91,250 91,250 109,714 (18,464) 97,990 Administrative Personal services 359,671 359,671 240,032 119,639 373,914 Supplies 18,450 18,450 15,650 2,800 17,906 Other services and charges 42,175 42,175 134,401 (92,226) 82,008 Total 420,296 420,296 390,083 30,213 473,828 Finance Personal services 132,929 132,929 137,469 (4,540) 120,556 Supplies 8,400 8,400 8,225 175 8,041 Other services and charges 11,600 11,600 14,619 (3,019) 11,686 Total 152,929 152,929 160,313 (7,384) 140,283 Professional services Other services and charges 203,390 203,390 199,042 4,348 190,592 Planning and zoning Personal services 170,666 170,666 181,143 (10,477) 181,381 Supplies 650 650 292 358 137 Other services and charges 7,400 7,400 7,684 (284) 7,691 Total 178,716 178,716 189,119 (10,403) 189,209 Municipal building Supplies 22,130 22,130 60,118 (37,988) 40,799 Other services and charges 164,800 164,800 141,227 23,573 149,879 Total 186,930 186,930 201,345 (14,415) 190,678 Total general government 1,233,511 1,233,511 1,249,616 (16,105) 1,282,580 -93- CITY OF SHOREWOOD, MINNESOTA Exhibit D -1 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With comparative actual amounts for the near ended December 31, 2012) 2013 2012 Budgeted Amounts Actual Variance with Actual Final Final Amounts Final Budget Amounts EXPENDITURES - CONTINUED Current - continued Public safety Police protection Other services and charges $ 1,013,077 $ 1,013,077 $ 1,018,680 $ (3,603) $ 992,711 Fire protection Other services and charges 349,582 349,582 345,728 3,854 331,987 Protective inspection Personal services 120,588 120,588 123,412 (2,824) 114,396 Supplies 200 200 - 200 242 Other services and charges 5,300 5,300 6,813 (1,513) 5,813 Total 126,088 126,088 130,225 (4,137) 120,451 Total public safety 1,490,747 1,490,747 1,494,633 (3,886) 1,445,149 Public works General maintenance Personal services 428,775 428,775 434,212 (5,437) 417,331 Supplies 171,300 171,300 141,763 29,537 120,685 Other services and charges 138,550 138,550 105,845 32,705 121,759 Total 738,625 738,625 681,820 56,805 659,775 Snow and ice removal Personal services 56,662 56,662 56,862 (200) 27,502 Supplies 45,000 45,000 44,835 165 29,509 Total 101,662 101,662 101,697 (35) 57,011 Cite engineer Personal services 92,549 92,549 460 92,089 84,615 Supplies 200 200 - 200 144 Other services and charges 11,220 11,220 68,690 (57,470) 21,689 Total 103,969 103,969 69,150 34,819 106,448 Total public works 944,256 944,256 852,667 91,589 823,234 -94- CITY OF SHOREWOOD, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2013 (With comparative actual amounts for the near ended December 31, 2012) EXPENDITURES - CONTINUED Current - continued Culture and recreation Personal services Supplies Other services and charges Total culture and recreation Total current expenditures Capital outlay General government Public safety Public works Total capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES 2013 Exhibit D -1 Budgeted Amounts Actual Variance with Actual Final Final Amounts Final Budget Amounts $ 139,719 $ 139,719 $ 133,518 $ 6,201 $ 139,022 20,800 20,800 23,726 (2,926) 18,266 51,055 52,055 51,868 187 48,254 211,574 212,574 209,112 3,462 205,542 3,880,088 3,881,088 3,806,028 75,060 3,756,505 200 200 322 (122) 2,811 523,080 523,080 515,419 7,661 503,038 1,200 1,200 - 1,200 - 524,480 524,480 515,741 8,739 505,849 859,402 858,402 1,041,358 182,956 1,044,041 OTHER FINANCING SOURCES (USES) Sale of capital asset - - 317,182 317,182 - Transfers out (962,650) (962,650) (1,006,650) (44,000) (907,800) TOTAL OTHER FINANCING SOURCES (USES) (962,650) (962,650) (689,468) 273,182 (907,800) NET CHANGE IN FUND BALANCES (103,248) (104,248) 351,890 456,138 136,241 FUND BALANCES, JANUARY 1 3,624,468 3,624,468 3,624,468 - 3,488,227 FUND BALANCES, DECEMBER 31 $ 3,521,220 $ 3,520,220 $ 3,976,358 $ 456,138 $ 3,624,468 -95- TOTAL DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 3,239,602 $ 3,354,364 $ 1,177,271 $ 3,213 $ 7,774,450 -96- CITY OF SHOREWOOD, MINNESOTA Exhibit E -1 DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2013 2007A 20078 20070 2008 Public Safetv Public Safetv Public Safetv Lease Revenue Building Building Building Bond Total ASSETS Cash and temporan- investments $ 8,287 $ (1,951) $ 784 $ 3,213 $ 10,333 Due from other governments 6,315 6,315 1,487 - 14,117 Lease receivable 3,225,000 3,350,000 1,175,000 - 7,750,000 TOTAL ASSETS $ 3,239,602 $ 3,354,364 $ 1,177,271 $ 3,213 $ 7,774,450 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - lease 3,225,000 3,350,000 1,175,000 - 7,750,000 FUND BALANCES Restricted for debt service 14,602 4,364 2,271 3,213 24,450 TOTAL DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 3,239,602 $ 3,354,364 $ 1,177,271 $ 3,213 $ 7,774,450 -96- CITY OF SHOREWOOD, MINNESOTA Exhibit E -2 DEBT SERVICE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2013 2007A 200713 20070 2008 Public Safetv Public Safetv Public Safetv Lease Revenue Building Building Building Bond Total REVENUES Lease payments $ 399,875 $ 410,228 $ 162,410 $ - $ 972,513 EXPENDITURES Debt service Principal Interest and service charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Transfers in 1110 = am 111-111M m III Mal 11111 U-111 WHOM 0 FUND BALANCES, JANUARY 1 FUND BALANCES, DECEMBER 31 255,000 260,000 110,000 50,000 675,000 142,625 147,978 50,160 50,450 391,213 397,625 407,978 160,160 100,450 1,066,213 2,250 2,250 2,250 (100,450) (93,700) - - - 100,450 100,450 2,250 2,250 2,250 - 6,750 12,352 2,114 21 3,213 17,700 $ 14,602 $ 4,364 $ 2,271 $ 3,213 $ 24,450 -97- CITY OF SHOREWOOD, MINNESOTA AGENCY FUND COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2013 Developer Escrow Accounts ASSETS Cash and temporan• investments LIABILITIES Escrow deposits parable Balance January- 1 Additions Deductions Exhibit F -1 Balance December 31 $ 47,087 $ 104,527 $ (43,111) $ 108,503 $ 47,087 $ 104,527 $ (43,111) $ 108,503 -98- CITY OF SHOREWOOD, MINNESOTA SUPPLEMENTARY INFORMATION SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 REVENUES Tales Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Miscellaneous TOTAL REVENUES Per Capita EXPENDITURES Current General government Public safety Public works Culture and recreation Capital outlay General government Public safety Public works Culture and recreation Debt service Principal Interest and service charges TOTAL EXPENDITURES Per Capita Total Long -term Indebtedness Per Capita General Fund Balance - December 31 Per Capita Total 2013 2012 $ 4,764,472 $ 4,783,939 204,600 175,087 76,544 76,102 92,549 121,625 59,294 66,230 37,461 61,584 1,234,312 1,115,836 6,469,232 $ 6,400,403 $ 870 $ 875 1,249,616 $ 1,288,704 1,494,633 1,445,149 860,071 823,234 324,745 331,524 322 2,811 515,419 503,038 605,761 655,125 1,539,328 69,084 675,000 655,000 391,213 439,429 $ 7,656,108 $ 6,213,098 $ 1,029 $ 850 8,840,000 $ 9,515,000 1,188 $ 1,301 $ 3,976,358 $ 3,624,468 $ 535 $ 496 Exhibit G -1 Percent Increase (Decrease) (0.41) % 16.86 0.58 (23.91) (10.47) (39.17) 10.62 1.08 % (0.64) % (3.03) % 3.42 4.47 (2.04) (88.55) 2.46 (7.54) 2,128.20 3.05 (10.97) 23.23 % 21.14 % (7.09) % (8.67) The purpose of this report is to provide a summary- of financial information concerning the Cite of Shorewood to interested citizens. The complete financial statements may be examined at City Hall, 5755 Country- Club Road, Shorewood, Minnesota 55331. Questions about this report should be directed to Bruce DeJong, Finance Director at (952)- 474 -3236. -99- 9.71 % 7.85 THIS PAGE IS LEFT BLANK INTENTIONALLY -I00- STATISTICAL SECTION (UNAUDITED) CITY OF SHOREWOOD SHOREWOOD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 -lol- THIS PAGE IS LEFT BLANK INTENTIONALLY -102- STATISTICAL SECTION (UNAUDITED) This part of the City of Shorewood's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary- information saes about the government's overall financial health. Financial trends These schedides contain trend information to help the reader understand how the government's financial performance and well- being have changed over time. Revenue capacity These schedides contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's abilith to issue additional debt in the fixture. Demographic and economic information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating information These schedides contain service and infi°astructure data to help the reader understand how the information in the government's financial report relocates to the services the government provides and the activities it performs. -103- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 Govertmlental activities Net investment in capital assets $ 12,167,269 $ 11,372,213 $ 11,690,620 $ 10,960,550 Restricted - - 24,632 - Unrestricted 6,669,073 6,316,707 5,716,027 6,147,185 Total governmental activities net position $ 18,836,342 $ 17,688,920 $ 17,431,279 $ 17,107,735 Bu sine ss -ty pe activities Net investment in capital assets $ 6,427,358 $ 6,172,309 $ 5,668,683 $ 6,066,229 Unrestricted 7,470,272 8,182,612 9,829,761 10,422,397 Total bu sine ss-type activities net position $ 13,897,630 $ 14,354,921 $ 15,498,444 $ 16,488,626 Total primary- government Net investment in capital assets $ 18,594,627 $ 17,544,522 $ 17,359,303 $ 17,026,779 Restricted - - 24,632 - Unrestricted 14,139,345 14,499,319 15,545,788 16,569,582 Total primary- government $ 32,733,972 $ 32,043,841 $ 32,929,723 $ 33,596,361 -104- Table 1 Fiscal Year 2008 2009 2010 2011 2012 2013 $ 9, 430, 566 $ 9,480,314 $ 9,525,991 $ 9,223,669 $ 8,487,162 $ 9,212,415 7,400,859 7,909,106 8,252,497 7,964,703 7,979,370 7,138,847 $ 16,831,425 $ 17,389,420 $ 17,778,488 $ 17,188,372 $ 16,466,532 $ 16,351,262 $ 6, 631,854 $ 6,482,297 $ 6, 494, 996 $ 6,675,613 $ 6,494,076 $ 6,705,907 10,186,824 9,449,210 8,666,149 8,186,835 8,148,173 7,951,219 $ 16,818,678 $ 15,931,507 $ 15,161,145 $ 14,862,448 $ 14,642,249 $ 14,657,126 $ 16,062,420 $ 15,962,611 $ 16,020,987 $ 15,899,282 $ 14,981,238 $ 15,918,322 17,587,683 17,358,316 16,918,646 16,151,538 16,127,543 15,090,066 $ 33,650,103 $ 33,320,927 $ 32,939,633 $ 32,050,820 $ 31,108,781 $ 31,008,388 -105- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES LAST TEN FISCAL YEARS (accrual basis of accounting) Expenses Governmental activities General government Public safety Public works Culture and recreation Interest on long -term debt Total governmental activities expenses Business -type activities Water Sewer Recycling Storrawater management utility Liquor Total business -type activities expenses Total expenses Program revenues Governmental activities Charges for services General government Public safety Public works Culture and recreation Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities Charges for services Water Sewer Recycling Storrawater management utility Liquor Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total program revenues Fiscal Year 2004 2005 2006 2007 1,074,028 $ 1,222,510 $ 1,357,714 $ 1,321,971 2,972,094 1,690,903 1,806,915 1,819,250 2,451,825 5,019,967 2,275,402 1,971,571 254,081 246,381 233,881 258,906 607,862 606,189 600,723 1,000,230 7,359,890 8,785,950 6,274,635 6,371,928 $ 6,039,037 $ 7,417,908 $ 5,959,759 $ 4,831,565 591,858 567,854 488,513 636,506 735,480 740,174 785,638 952,107 106,933 105,823 124,354 91,157 106,757 73,885 171,190 63,888 2,152,411 2,006,107 2,017,217 1,885,537 3, 693 ,439 3,493,843 3,586,912 3,629,195 $11,053,329 $12,279,793 $ 9,861,547 $ 10,001,123 51,069 $ 112,107 $ 25,340 $ 41,475 983,684 1,055,758 1,060,506 896,731 1,080 1,575 1,800 1,960 119,594 100,910 31,730 99,800 996,967 2,404,367 395,229 132,912 2,152,394 3,674,717 1,514,605 1,172,878 620,189 649,772 1,350,041 782,549 866,350 833,939 836,175 832,956 114,987 116,517 144,886 89,934 85,978 102,649 129,708 164,413 2,199,139 2,040,314 1,984,344 1,788,835 3,886,643 3,743,191 4,445,154 3,658,687 $ 6,039,037 $ 7,417,908 $ 5,959,759 $ 4,831,565 -106- Table 2 Fiscal Year 2008 2009 2010 2011 2012 2013 $ 1,483,913 $ 1,486,281 $ 1,235,098 $ 1,405,791 $ 1,331,286 $ 1,310,296 1,906,890 1,904,966 1,893,413 1,960,894 1,947,868 2,010,338 2,485,752 1,941,272 2,231,473 2,031,136 2,162,123 1,884,986 273,054 394,110 452,437 412,257 460,879 471,784 1,002,423 638,768 474,082 449,773 428,887 379,685 7,152,032 6,365, 397 6,286 ,503 6,259,851 6,331,043 6,057,089 1,591,010 801,652 949,816 845,831 935,585 1,052,570 657,776 659,113 643,886 690,363 689,205 693,193 921,238 955,956 980,173 1,151,626 1,065,926 847,097 96,945 99,286 173,896 174,857 187,713 181,537 106,143 106,847 131,107 233,035 273,846 107,935 16,167 129 25 - - - 1,798,269 1,821,331 1,929,087 2,249,881 2,216,690 1,829,762 $ 8950,301 $ 8,186,728 $ 8,215,590 $ 8,509,732 $ 8,547,733 $ 7,886,851 $ 32,528 $ 34,064 $ 53,381 $ 108,394 $ 144,883 $ 187,628 793,041 634,742 624,330 544,749 604,400 599,810 - 6,279 - 6,293 4,137 226 605 35,843 58,661 72,678 79,206 120,794 90,493 90,681 99,114 113,717 102,959 144,112 674,343 43 114,330 - - - 1,591,010 801,652 949,816 845,831 935,585 1,052,570 752,338 784,318 668,676 829,117 802,252 845,043 64,629 65,112 146,002 204,618 191,157 198,593 27,950 28,488 28,762 1,878,652 1,871,327 1,887,076 672,793 757,395 537,713 819,496 831,640 834,320 151,894 157,585 165,713 196,070 193,931 194,950 33,586 23,007 25,830 15,000 22,400 53,200 1,888,839 1,985,958 1,811,726 $ 3,469,662 $ 2,672,979 $ 2,836,892 $ 2,734,670 $ 2,921,543 $ 2,864,296 -107- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION - CONTINUED LAST TEN FISCAL YEARS (accrual basis of accounting) Net revenues (expenses) Goverinnental activities Bu sine ss -ty pe activities Total priman- government General Revenues and Other Changes in Net Position General Revenues Govertunental activities Tales Property tales, levied for general purpose Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of capital assets Transfers Total governmental activities general revenues Bu sine ss -ty pe activities Unrestricted investment earnings Gain on sale of capital assets Transfers Total business -type activities general revenues Total priman- government Change in Net Position Govertunental activities Bu sine ss -ty pe activities Fiscal Year 2004 2005 2006 2007 $ (5,207,496) $ (5,111,233) $ (4,760,030) $ (5,199,050) 193,204 249,348 858,242 29,492 $ (5,014,292) $ (4,861,885) $ (3,901,788) $ (5,169,558) $ 3,345, 326 $ 3,770,702 $ 4,144,543 $ 4,360,254 4,723 4,785 4,925 37,746 127,853 201,024 327,921 621,234 - 4,300 - - 5,000 (17,000) 25,000 (143,728) 3, 482 ,902 3,963,811 4,502,389 4,875,506 144,163 190,943 310,281 434,072 - - - 382,890 (5,000) 17,000 (25,000) 143,728 139,163 207,943 285,281 960,690 $ 3, 622065 $ 4,171,754 $ 4,787,670 $ 5,836,196 $ (1,724,594) 22'1 2/- "7 $ (1,147,422) AC"7 11(11 $ (257,641) I l A2 C1) 2 $ (323,544) (1(1!1 101) Total priman- government $ (1392227) $ (690,131) $ 885,882 $ 666,638 -108- Table 2 Fiscal Year 2008 2009 2010 2011 2012 2013 $ (5,561,022) $ (5,563,745) $ (5,336,687) $ (5,414,020) $ (5,395,458) $ (5,004,519) 80,383 49,996 (42,011) (361,042) (230,732) (18,036) $ (5,480,639) $ (5,513,749) $ (5,378,698) $ (5,775,062) $ (5,626,190) $ (5,022555) $ 4,582,909 $ 4,743,174 $ 4,744,348 $ 4,733,948 $ 4,761,213 $ 4,768,989 19,957 4,940 4,487 4,751 6,019 5,818 641,846 333,626 132,359 56,705 61,584 37,461 - - 31,130 28,500 - 76,981 40,000 1,040,000 813,431 - - - 5,284,712 6,121,740 5,725,755 4,823,904 4,828,816 4,889,249 289,669 102,833 85,080 62,345 64,135 32,913 (40,000) (1,040,000) (813,431) - - - 249,669 (937,167) (728,351) 62,345 64,135 32,913 $ 5,534,381 $ 5,184,573 $ 4, 997, 404 $ 4,886,249 $ 4,892,951 $ 4,922,162 $ (276,310) $ 557,995 $ 389,068 $ (590,116) $ (566,642) $ (115,270) 330,052 (887,171) (770,362) (298,697) (166,597) 14,877 $ 53,742 $ (329,176) $ (381,294) $ (888,813) $ (733,239) $ (100,393) -109- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS General fund Resen-ed Unreserved Nonspendable Unassigned Total general fund All other governmental funds Resen-ed Unreserved, reported in Special revenue funds Capital project funds Nonspendable Restricted Assigned Unassigned Total all other governmental funds Fiscal Year 2004 2005 2006 2007 - $ 48,593 $ - $ - 2,941,223 2,944,588 3,383,906 3,761,509 $ 2,941,223 $ 2,993,181 $ 3,383,906 $ 3,761,509 $ 191,410 $ 238,873 $ 262,438 $ 10,040,556 3,566,803 3,116,437 2,197,367 2,473,097 $ 3,758,213 $ 3,355,310 $ 2,459,805 $ 12,513,653 Note: The City implemented GASB 54 in fiscal year 2011, resulting in significant reclassification of the components of fund balance. Years prior to 2011 have not been restated. -110- Table 3 Fiscal Year 2008 2009 2010 2011 2012 2013 $ 47,750 $ 500 $ 49,060 - 3,660,359 3,555,224 3,477,932 - - - - - - 48,000 50,000 33,016 - - - 3,440,227 3,574,468 3,943,342 $ 3,708,109 $ 3,555,724 $ 3,526,992 $ 3,488,227 $ 3,624,468 $ 3,976,358 $ 10,033,342 $ 1,934,628 $ 96,333 - - (17,650) - - - 3,743,980 4,252,870 4,520,558 - - - - - - 150,068 150,068 150,068 - - - 30,439 17,700 24,450 - - - 4,229,528 4,368,656 3,117,434 - - - - (75,325) (52,437) $ 13,777,322 $ 6,187,498 $ 4,599,241 $ 4,410,035 $ 4,461,099 $ 3,239,515 -111- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Revenues Tales Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total revenues Expenditures General government Public safety Public works Culture and recreation Capital Outlay Debt service Principal Interest and service charges Bond issuance costs Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Sale of capital assets Proceeds from sale of bonds Bonds refunded Discount on long -term debt issued Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of Noncapital expenditures Fiscal Year '11111A '111116 11111( 111117 $ 3,344,442 $ 3,750,633 $ 4,141,539 $ 4,332,741 310,055 334,720 382,408 256,472 1,014,410 2,432,656 365,732 224,286 44,169 50,752 45,450 50,819 81,841 90,149 79,040 77,777 10,737 6,928 895 418 127,853 201,024 327,921 621,234 740,030 1,134,429 1,110, 860 1,077,012 5,673,537 8,001,291 6,453,845 6,640,759 1,037,043 1,169,096 1,264,509 1,253,223 1,028,689 1,124,620 1,257,998 1,263,921 477,596 570,080 626,048 718,350 168,278 167,519 169,411 190,931 2,896,330 4,307,721 2571,204 1,123,796 48,069 384,842 486,728 534,594 637,397 611,358 607,727 956,532 6,293,402 8,335,236 6,983,625 6,041,347 (619,865) (333,945) (529,780) 599,412 328,500 542,000 635,000 770,091 - - - (24,233) (323,500) (559,000) (610,000) (913,819) 5,000 (17,000) 25,000 9,832039 $ (614,865) $ (350,945) $ (504,780) $ 10,431,451 -112- 11.2% 12.7% 20.1% 26.3% Table 4 Fiscal Year 2008 2009 2010 2011 2012 2013 $ 4,582,602 $ 4,703,368 $ 4,717,204 $ 4,787,195 $ 4,783,939 $ 4,764,472 195,419 127,883 154,113 174,119 175,087 204,600 753,605 66,411 173,334 72,968 76,102 76,544 50,753 41,649 100,899 102,500 121,625 92,549 53,369 52,968 55,806 52,635 66,230 59,294 - - 333 - - - 641,846 333,626 132,359 56,705 61,584 37,461 1,053,916 1,059,914 1,037,522 1,032,566 1,115,836 1,234,312 7,331,510 6,385,819 6,371,570 6,278,688 6,400,403 6,469,232 1,443,549 1,386,614 1,147,198 1,306,948 1,288,704 1,249,616 1,352,254 1,392,139 1,392,923 1,460,664 1,445,149 1,494,633 760,287 670,954 859,069 866,413 823,234 860,071 229, 259 326,502 342,654 343,326 331,524 324,745 2,164,366 1,953,756 2,075,109 1,457,001 1,230,058 2,660,830 485,000 520,000 600,000 625,000 655,000 675,000 977,957 818,063 516,167 447,307 439,429 391,213 58,569 - - - - - 7,471,241 7,068,028 6,933,120 6,506,659 6,213,098 7,656,108 (139,731) (682,209) (561,550) (227,971) 187,305 (1,186,876) 933,366 2,059,773 1,942,550 984,541 1,170,216 2,482,650 - - 31,130 - - 317,182 1,310,000 - - - - - - (893,366) (1,019,773) (1,129,119) (984,541) (1,170,216) (2,482,650) 1,350,000 (7,060,000) (1,055,439) - - 317,182 $ 1,210,269 $ (7,742,209) $ (1,616,989) $ (227,971) $ 187,305 $ (869,694) 23.1% 22.4% 19.1% 18.4% 18.3% 18.5% -113- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) TAX CAPACITY, MARKET VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (Shown bv rear of tax collectabilitv ) 2004 2005 2006 2007 Taxable market value Personal property $ 3,831,300 $ 4,130,300 $ 4,361,600 $ 4,591,200 Real estate 1,033,460,200 1,173,029,000 1,318,313,000 1,475,529,200 Total taxable market value $1,037,291,500 $1,177,159,300 $1,322,674,600 $1,480,120,400 Estimated actual value of taxable property $1,415,129,000 $1,550,488,900 $1,416,341,600 $1,553,767,900 Taxable market value as a percentage of estimated actual value 73.30 % 75.92 % 93.39 % 95.26 % Tax capacity Personal property $ 75,409 $ 81,333 $ 85,635 $ 89,872 Real estate 10,980,358 12,590,290 14,269,195 16,130,097 Total tax capacity 11,055,767 12,671,623 14,354,830 16,219,969 Contribution to fiscal disparities pool (200,062) (213,988) (276,939) (308,590) Receivable from fiscal disparities pool 396 ,666 379,072 399,944 407,687 Net tax capacity $ 11,252,371 $ 12,836,707 $ 14,477,835 $ 16,319,066 Tax levies General $ 2,907,997 $ 3,333,864 $ 3,678,592 $ 3,835,173 Debt service 512,232 496,792 511,803 561,135 Total $ 3,420, 229 $ 3,830,656 $ 4,190,395 $ 4,396,308 Direct tax rate General 25.843 % 25.971 % 25.408 % 23.501 % Debt service 4 .552 3.870 3.535 3.439 Total 30.396 % 29.841 % 28.944 % 26.940 % Source: Hennepin County Assessor Note: Property in the county is reassessed annually. The county assesses property at approximately 90 percent of actual value for all types of real and personal property. -114- Table 5 2008 2009 2010 2011 2012 2013 4,336,600 $ 4,764,900 $ 4,629,900 $ 4,948,300 $ 5,291,700 $ 6,006,500 1,597,262,400 1,651,054,700 1,631,938,000 1,507,900,600 1,430,712,101 1,367,209,584 $1,601,599,000 $1,655,819,600 $1,636,567,900 $1,512,848,900 $1,436,003,801 $1,373,216,084 $1,645,188,300 $1,673,720,100 $1,638,118,400 $1,514,456,700 $1,453,867,700 $1,392,562,700 97.35 % 98.93 % 99.91 % 99.89 % 98.77 % 98.61 % $ 84,780 $ 91,548 $ 88,848 $ 95,216 $ 102,084 $ 113,130 17,619,943 18,305,114 18,087,557 16,620,629 15,761,142 15,025,751 17,704,723 18,396,662 18,176,405 16,715,845 15,863,226 15,138,881 (351,789) (396,336) (432,995) (419,002) (389,965) (393,282) 445,780 513,259 526,521 478,935 435,462 368,528 $ 17,798,714 $ 18,513,585 $ 18,269,931 $ 16,775,778 $ 15,908,723 $ 15,114,127 $ 4,056,917 $ 4,158,672 $ 4,160,292 $ 4,158,672 $ 4,158,672 $ 4,763,319 555,078 617,620 616,000 604,647 - - $ 4,611,995 $ 4,776,292 $ 4,776,292 $ 4,763,319 $ 4,158,672 $ 4,763,319 22.793 % 22.463 % 22.771 % 24.790 % 26.141 % 31.516 % 3.119 3.336 3.372 3.604 - - 25.912 % 25.799% 26.143 % 28.394 % 26.141 % 31.516 % -115- Year Tales Pay able 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) PROPERTY TAX CAPACITY RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF TAX CAPACITY IN 2004 - 2013) City Count-\ 30.396 % 47.324 29.841 44.172 28.944 41.016 26.940 39.110 25.912 38.571 25.799 40.413 26.143 42.640 28.394 45.840 29.942 48.231 31.516 49.461 Source: Hennepin County Assessor (1) Includes vocational school Overlapping Rates (1) School District Watershed District No. 276 No. 277 No.3 No.4 Misc. 23.125 14.354 0.768 0.732 7.488 % 21.989 16.250 1.276 1.375 7.382 22.952 10.522 1.072 0.787 6.998 24.793 9.911 1.121 0.743 7.310 17.980 8.521 1.404 1.302 7.397 17.186 8.284 1.489 1.246 7.154 18.657 9.772 1.511 1.279 8.138 21.274 10.900 1.606 1.352 9.172 23.015 17.262 1.705 1.387 9.923 24.487 18.119 1.769 1.523 10.089 Overlapping rates are those of local and county governments that apply to property owners within the Cite. Not all overlapping rates apple to all Cite property owners (e.g. the rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district). -116- Table 6 Totals 109.101 % School 100.330 % District School District No. 276 No. 277 Watershed Watershed Watershed District District District No.3 No.4 No.3 109.101 % 109.065 % 100.330 % 104.660 104.759 98.921 100.982 100.697 88.552 99.274 98.896 84.392 91.264 91.162 81.805 92.041 91.798 83.139 97.089 96.857 88.204 106.286 106.032 95.912 112.816 112.498 107.063 117.322 117.076 110.954 -117- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) PRINCIPAL TAXPAYERS DECEMBER 31, 2013 Kimberlev & Frank Venues Xcel Energy The Mary Sue Simon Qprt Thomas J. & Cvnthia J. Redmond Totals $ 814,753 Source: Hennepin County Assessor 2013 Rank 1 2 3 4 5 6 7 8 9 10 -118- Table 7 2004 Percent Tax Taxpaver Capacity of Total Shorewood Village Shopping Center, Inc. (Toi $ 139,650 Big Box One, LLC 130,310 Two S Properties (Shurgard Storage) 105,310 South Lake Office Building LLC 82,650 Jack & Gretchen Norqual 81,513 W of Shorewood LLC 70,510 Beacon Bank 56,870 Elaine & Gaiv Jarrett 53,900 Waterford Center LLP 47,410 Minnetonka Country Club 46,630 Kimberlev & Frank Venues Xcel Energy The Mary Sue Simon Qprt Thomas J. & Cvnthia J. Redmond Totals $ 814,753 Source: Hennepin County Assessor 2013 Rank 1 2 3 4 5 6 7 8 9 10 -118- Table 7 2004 Percent Percent of Total Tax of Total Tax Capacity- Capacity Rank Tax Capacity 092 % $ 69,450 3 0.62 % 0.86 88,610 1 0.79 0.70 71,530 2 0.64 0.55 - - - 0.54 - - - 0.47 - - - 0.38 42,710 7 0.38 0.36 - - - 0.31 40,250 9 0.36 0.31 51,210 5 0.46 - 53,125 4 0.47 - 43,462 6 0.39 - 40,655 8 0.36 - 37,813 10 0.34 5.39 % $ 538,815 4.79 % CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (1) Includes state paid property tax credits. Percentage of Lev Collected 99.12 % 98.76 98.94 98.27 98.59 97.35 98.09 98.82 99.04 99.11 -119- Collection in subsequent rears $ 29,754 46,458 41,120 77,258 61,628 116,800 82,249 46,688 37,926 Total Collections $ 3,419,891 3,829,532 4,186,949 4,397,547 4,608,527 4,766,704 4,767,309 4,753,588 4,755,584 4,720,748 Table 8 Percent of Total Collections to Le«v 99.99 % 99.97 99.92 100.03 99.92 99.80 99.81 99.80 99.84 99.11 (1) Collection Fiscal Total of Current Year Levv Year's Le« 2004 3,420,229 3,390,137 2005 3,830,656 3,783,074 2006 4,190,395 4,145,829 2007 4,396,308 4,320,289 2008 4,611,995 4,546,899 2009 4,776,292 4,649,904 2010 4,776,292 4,685,060 2011 4,763,319 4,706,900 2012 4,763,319 4,717,658 2013 4,763,319 4,720,748 (1) Includes state paid property tax credits. Percentage of Lev Collected 99.12 % 98.76 98.94 98.27 98.59 97.35 98.09 98.82 99.04 99.11 -119- Collection in subsequent rears $ 29,754 46,458 41,120 77,258 61,628 116,800 82,249 46,688 37,926 Total Collections $ 3,419,891 3,829,532 4,186,949 4,397,547 4,608,527 4,766,704 4,767,309 4,753,588 4,755,584 4,720,748 Table 8 Percent of Total Collections to Le«v 99.99 % 99.97 99.92 100.03 99.92 99.80 99.81 99.80 99.84 99.11 CC O Q 0 W Q rTl Q 0 � H 0 � O � � d 'w I H I a O N N M l- M - C1 0 0 0 't 0 0 N �. •� � O 0 O u M O 0 0 O O N .+� cz u 'C vi v'� vi v� v� v� v� v� vi o ro o Ci C, o r- 't • � N � O N N M M M M N N N M U 69 M O O --� --� --� 69 N - - - 69 O N N 7�- � VV l- O 0 0 0 0 0 0 O O O O O O O O O O O N 0 0 0 0 0 0 0 0 0 0 N �. •� � O 0 O u M O 0 0 O O N .+� cz u 'C vi v'� vi v� v� v� v� v� vi o ro o Ci C, o r- 't • � N � O N N M M M M N N N M U 69 M O O --� --� --� N N - - - 69 7�- � VV l- O 0 0 0 0 0 0 O O O O O O O O O O O N 0 0 0 0 0 0 0 0 0 0 N �. •� � O 0 O u M O 0 0 O O N .+� cz u 'C vi v'� vi v� v� v� v� v� vi o ro o Ci C, o r- 't • � N � O N N M M M M N N N M U 69 M O O 7�- � VV l- O 0 0 0 0 0 0 O O O O O O O O O O O N 0 0 0 0 0 0 0 0 0 0 0 0 0 u M O 0 0 0 0 cz u 'C vi o vi o 7�- � VV l- O 0 0 0 0 0 0 O O O O O O O O O O O N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 cz u 'C vi o vi o vi i o vi o ro o Ci C, o r- 't • � N � O M O v'� O O� N N l- - CO U M O O --� --� --� N N - - - 69 Li 69 7�- � VV l- O 0 0 0 0 0 0 O O O O O O O O O O O N CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 2013 Direct Debt Cite of Shorewood Overlapping Debt School District #276 School District #277 Hennepin County Henn Suburban Park District Henn Regional RR Authority Metropolitan Council Total Overlapping Debt Total Direct and Overlapping Debt Table 10 Gross Amount Bonded of Debt Used Percentage Net Debt For Net Debt Net Applicable to Applicable Calculation Debt District to District $ 8,840,000 $ 8,840,000 100.00 % 8,840,000 $ 125,062,181 $ 98,298,831 19.36 % $ 19,030,654 32,295,000 31,762,414 2.15 682,892 735,600,000 723,264,582 1.17 8,462,196 74,395,000 54,166,123 1.60 866,658 37,675,000 37,350,216 1.60 597,603 219,230,000 158,664,771 0.54 856,790 $ 1,224,257,181 $ 1,103,506,937 2.76 % $ 30,496,792 $ 1,233,097,181 $ 1,112,346,937 3.54 % $ 39,336,792 Sources : Market value data used to estimate applicable percentages provided by the County Board of Equalization and Assessment. Debt outstanding data provided by the county. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Cite. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognized that, when considering the government's ability to issue and repay long -term debt, the entire debt burden borne b�- the residents and businesses should be taken into account. However, this does not imply that even taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. * The percentage of overlapping debt applicable is estimated using taxable market property values. Applicable percentages were estimated by determining the portion of the county's taxable market value that is within the City's boundaries and dividing it by the county's total taxable market value. -121- CITY OF SHOREWOOD, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Fiscal Year 2004 2005 2006 2007 Debt limit $ 20,745,830 $ 23,543,186 $ 26,453,492 $ 29,602,408 Total net debt applicable to limit - - - - Legal debt margin $ 20,745,830 $ 23,543,186 $ 26,453,492 $ 29,602,408 Total net debt applicable to the limit as a percentage of debt limit $ - Note: Under state law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of taxable property. The percentage was changed to 3 percent for fiscal year 2008, prior to that, the percentage was 2 percent. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. -122- Table 11 Fiscal Year 2008 2009 2010 2011 2012 2013 $ 32,031,980 $ 33,116,392 $ 32,731,358 $ 45,385,467 $ 43,080,114 $ 41,196,483 $ 32,031,980 $ 33,116,392 $ 32,731,358 $ 45,385,467 $ 43,080,114 $ 41,196,483 Legal Debt Margin Calculation for Fiscal Year 2012 Taxable market value Debt limit (3% of market value) Debt applicable to limit General obligation bonds Less: amount available in debt service funds Total net debt applicable to limit Legal debt margin -123- $ 1,373,216,084 $ 41,196,483 $ 41,196,483 CITY OF SHOREWOOD, MINNESOTA Table 12 STATISTICAL SECTION (UNAUDITED) PLEDGED - REVENUE COVERAGE LAST TEN FISCAL YEARS (1) Including interest and other income (2) Excluding depreciation and interest on bonds Capital Leases General Obligation Revenue Bonds Revenue from (1) Fiscal Net Debt Service Year Fiscal Gross (2) Revenue Debt Service $ 28,069 $ 9,475 1.00 % Year Revenue Expenses Available Principal Interest Coverage 2004 $ 676,287 $ 314,513 $ 361,774 $ 190,000 $ 86,907 1.31 % 2005 720,438 300,858 419,580 950,000 88,712 0.40 2006 1,264,892 223,243 1,041,649 275,000 79,456 2.94 2007 765,717 259,056 506,661 255,000 81,165 1.51 2008 857,890 278,164 579,726 250,000 172,050 1.37 2009 821,778 250,995 570,783 250,000 142,589 1.45 2010 700,678 238,780 461,898 250,000 125,407 1.23 2011 718,561 299,962 418,599 240,000 116,728 1.17 2012 809,746 313,620 496,126 175,000 100,668 1.80 2013 595,599 300,232 295,367 185,000 75,630 1.13 (1) Including interest and other income (2) Excluding depreciation and interest on bonds -124- Capital Leases Revenue from Fiscal Property Debt Service Year Taxes Principal Interest Coverage 2004 $ 37,544 $ 28,069 $ 9,475 1.00 % 2005 37,544 29,842 7,702 1.00 2006 37,544 31,728 5,816 1.00 2007 73,406 69,594 3,812 1.00 2008 - - - - 2009 - - - - 2010 - - - - 2011 - - - - 2012 - - - - 2013 - - - - Lease Revenue Bonds Revenue from Fiscal Lease Debt Service Year Pavments Principal Interest Coverage 2004 $ 620,596 $ - $ 624,650 0.99 % 2005 948,384 355,000 588,384 1.01 2006 1,040,693 455,000 589,056 1.00 2007 1,034,751 465,000 941,222 0.74 2008 1,037,241 485,000 970,065 0.71 2009 992,835 495,000 737,863 0.81 2010 982,037 555,000 457,840 0.97 2011 902,003 575,000 393,357 0.93 2012 978,744 605,000 372,230 1.00 2013 972,513 625,000 335,513 1.01 -124- CITY OF SHOREWOOD, MINNESOTA Table 13 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Data Sources: (1) Metropolitan Council (2) Bureau of Economic Analysis (3) US Census Bureau (4) US Census Bureau 2000 (5) Minnesota Department of Employment and Economic Development - Hennepin County Note: Population, median age, and education level information are based on surveys conducted during the last quarter of the calendar year. Personal income information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment is based on the census at the start of the school � -ear. -125- Percent of Population Total Per Capita Which Has a Fiscal Personal Personal Median Bachelor's or Post Unemployment Year Population (1) Income (2) Income (2) Age (3) Graduate Degree (4) Rate (5) 2004 7,625 $ 362,787,795 $ 48,045 38.7 4.3 % 2005 7,551 371,695,434 49,566 38.7 3.8 2006 7,499 377,246,826 49,566 38.7 3.3 2007 7,611 392,414,022 49,566 38.7 4.7 2008 7,917 431,535,825 54,425 39.0 7.3 2009 7,929 397,683,475 54,425 39.0 7.4 2010 7,307 429,651,600 58,800 39.1 5.1 2011 7,307 433,743,520 59,360 44.2 51.1 % 5.7 2012 7,312 420,264,512 57,476 44.1 49.8 4.6 2013 7,438 438,083,324 58,898 43.6 56.4 3.8 Data Sources: (1) Metropolitan Council (2) Bureau of Economic Analysis (3) US Census Bureau (4) US Census Bureau 2000 (5) Minnesota Department of Employment and Economic Development - Hennepin County Note: Population, median age, and education level information are based on surveys conducted during the last quarter of the calendar year. Personal income information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment is based on the census at the start of the school � -ear. -125- CITY OF SHOREWOOD, MINNESOTA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (1) 2013 Employer Employees Cub Foods 120 Minnewashta Elementary School 116 Xcel Energy 79 Beacon Bank 35 Minnetonka Countv Club 33 Citv of Shorewood 26 Total 409 Total City Employment 1,128 Percentage of Total Citv Rank Employment Employees 10.64 % - 10.28 - 7.00 - 3.10 - 293 - 2.30 - 36.26 % - Source: Minnesota Department of Employment and Economic Development * Includes part -time and temporary seasonal employees. N/A - indicates not available (1) Information for 2004 was not available. The table will be updated for future years. -126- 2004 Rank Table 14 Percentage of Total Citv Employment N/A % N/A N/A N/A N/A N/A Function CITY OF SHOREWOOD, MINNESOTA FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS (1) 2006 2007 2008 2009 2010 2011 General government 13 13 13 12 12 10 Public works Engineering Maintenance Culture and recreation Parks Economic development Water Server Municipal Liquor Total 1 Table 15 2012 2013 10 9 1 Source: Citv of Shorewood (1) Information prior to 2006 was not maintained by the Cite. The table will be updated on a go- fonvard basis. -127- 6 6 6 6 6 5 5 6 13 5 5 5 5 3 3 2 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1 1.5 1.5 1.5 1.5 1.5 1.5 1.5 2 3 2 - - - - - - 38 29 27 26 26 22 22 20 Source: Citv of Shorewood (1) Information prior to 2006 was not maintained by the Cite. The table will be updated on a go- fonvard basis. -127- �r O w O 0 t �bA i CC H � O c � � � � c s O N � O r-i � O CT CT O O O N � O r-i .. CT O N CO O O En O N � O r-i U DO U) O U �O O CO O M M O O O N N O H W O ~ ~ N N ONO O N � O r-i �r O w cz cz bOA cz O 'C H 00 N O 0 t �bA i � O c � � � c s .. cz En U DO U) cz cz bOA cz O 'C H 00 N Li O w 4 O � b�A � Li U cz bA U cy U O S cz U �, ,� U ct '� '� �O 4-i c ot m U cz cz m cz cz u 55 cz cz bOA cz O 'C U H O� N 00 CC H ,� r-i r-i r-i ~ E-� O � O " w N � O r-i Li O w 4 O � b�A � Li U cz bA U cy U O S cz U �, ,� U ct '� '� �O 4-i c ot m U cz cz m cz cz u 55 cz cz bOA cz O 'C U H O� N CITY OF SHOREWOOD PARK COMMISSION MEETING TUESDAY, JUNE 10, 2014 MINUTES 1. CONVENE PARK COMMISSION MEETING Chair Mangold convened the meeting at 7:00 p.m. #7a 5755 COUNTRY CLUB RD SHOREWOOD CITY HALL 7:00 P.M. A. Roll Call Present: Chair Mangold, Commissioners Hartmann, Iscl Council Liaison Hotvet; City Planner Nielsen Review Agenda Sawtell moved to approve the agenda as written. carried 4 -0. 2. APPROVAL OF MINUTES A. Park Commission Meeting M B. Park Commission Park Tour Commissioner Sawtell n change 15- minute prese minutes of the June 5, 21 needed and two of them 4 -0. 3. There 4. Nielsen stated thei assigned a level. I noticed during the and Savaell; City seconded the motion. Motion the May 13, 2014 meeting as amended: n under the Bee presentation; and the led: replace panels at the skate park as seconded the motion. Motion carried MAINTENANCE STANDARDS ten general categories of levels of service. Each property in the City was ted the lists can be used as checklists for maintenance staff. He stated he tour that tree care is lacking and needs to be improved upon. Ische asked why Director Brown isn't preparing this list. Nielsen stated Brown is very busy and could not prepare the list. He did talk to Brown about the list. Nielsen stated he explained to Brown the list is not a criticism of the work being done and may identify additional staff members are needed. Ische stated they need to prepare a list of what is currently being done first. He indicated development standards should be done after that list is reviewed and not before. PARK COMMISSION MINUTES TUESDAY, JUNE 10, 2014 PAGE 2 OF 6 Mangold believed the current crew already has some standards. He also indicated there are different levels of service for fields depending on the use. Ische suggested ball fields be Level I -A, and the parks without ball fields should be Level 2. Mangold believed that is a great start. He discussed the levels of service needed on ball fields depending on the type of use. Hartmann stated there needs to be a seasonal checklist as well. Hotvet stated when this gets finished, a recommendation to the City Council would carry a lot of value. Ische stated this needs to be developed with Brown. Hartmann stated it would also be good to know what maintenancef is contracted out, and what is not contracted out. Ische stated that would also help to determine if an additional staff peron is needed. Nielsen stated we shouldn't spend too much time with this discussed the ranking of the various parks and suggested C Ische also believed the trails should be c _5. HERBICIDE TREATMENTS Mangold asked how oft however, indicate the B+ been discontinued beca roundup on the warning mowing is done. Ische stated an annual license is would make sense to have a coui Mangold asked what the doing the spraying has in( Hartmann asked located. it Brown's comments. He be Level 3. based on are used in the parks. Nielsen stated he did not know. He did, pleased with what is being used. He indicated one herbicide has tits' concerns. He also believed he thought they were using )uld check for sure. He believed spot areas can be sprayed when certified to wear a spraying unit. Nielsen believed it ight be if chemicals are changed. Nielsen stated the person who is is pleased with the results. boulevards areas include. Nielsen identified where they are Commissioners discussed areas where spraying does not take place at all, such as Silverwood Park where there is not a ball field. Hotvet asked if this information about what herbicides are being used is on the website. Nielsen stated it is not currently there, but that is a good idea. Ische stated he would be careful specifying what product is being used. He stated it would be better to post when spraying will take place and not what is being used. PARK COMMISSION MINUTES TUESDAY, JUNE 10, 2014 PAGE 3 OF 6 Mangold stated they are required to post on site when they have sprayed. Nielsen stated we need to spray tennis courts and trails. Ische stated it is important to maintain courts and trails. 6. FOLLOW -UP DISCUSSION OF JOINT MEETING ON BADGER PARK Nielsen reviewed concept two for Badger Park. He stated it gives a strong connection to the Southshore Center. He indicated the Center is not going away, and ' t ' here might as well be a connection there. He indicated the bulls of the added parking is at'th Center. He stated the trail could be more curvilinear to wind through proposed park features. The concept creates more space and a better location for the field. The trail can loots around the field on the south side, and this is not currently shown. The driveway to the Center can be `straightened out more. He stated the park elements are open for discussion as far as where they should be located. He stated the consultants are working on concept 1.5 right nova. He stated we need to move forward with a concept. He stated the pinwheel design in concept one looks good on paper. Nielsen stated he is recommending concept. two. Hartmann asked what would be included in concept 1.5. Nielsen stated he did not know what would be included but would be meeting with WSB soon. Ische stated concept two's sidewalk goes right along the parking lot as well but there are trees on each side. Ische suggested additional trees be planted along the sidewalk. He believed it would be easier for Public Works to maintain turf on the ball field oriented north/south rather than east /west. He believed there would also be problems with lack of sunlight. Ische also believed the Southshore Center is not a destination that would normally be used if someone is at the ball field. Nielsen stated the intent i to tie the Center to the park. Ische stated he would like the City Council to tell the Commission how much is available over the next five years for park development. He believed we might be spinning our wheels until we know what our budget will be over the next few years. Nielsen stated a phased option is probably the preference,,and bonding might also be an option. Ische stated the City Council needs to make that decision. Sawtell stated this process has been frustrating. He agreed with Ische's comments. Mangold stated we need to make it clear to the City Council that we have expenses planned. He was concerned about phasing Badger Park. Nielsen stated we always look for grants but can never count on them. We have to budget for the money. Mangold stated he was unsure how far down the road to go with pricing out a concept at this point. PARK COMMISSION MINUTES TUESDAY, JUNE 10, 2014 PAGE 4 OF 6 Nielsen stated we need to know what the concept will be before we even do soil tests because of their expense. Hartmann discussed using the Southshore Center for restrooms. Nielsen stated the pros and cons of such an option. He believed it is worth looking at but believed the park should have separate bathrooms. Hotvet asked when the financial discussion will take place at the Council level. Nielsen believed it should be discussed at the next meeting. Hotvet asked if bonding would also be discussed. Nielsen stated it could. Mangold stated he still preferred concept one. Ische did as well. °Sawtell agreed. Hartmann stated she voted for concept one and stated something needs to be done now. 7. REVIEW PARK TOURS FROM JUNE Mangold stated the priority should be the tree situation. He believed all the parks should be visited and tree issues identified by staff. Nielsen stated a list needs to be compiled, and Brown, needs to indicate when work can be completed If they cannot do it, it needs to be done somehow. Hartmann stated the runoff issue needs to be addressed at Manor Park. She stated there didn't appear to be room for a trail between the tennis court and the private property. Nielsen stated that would be reviewed. In response to a comment from Mangold, Nielsen, stated the majority of the pond is on private property but would .provide additional information at the next meeting. Mangold stated the key issue at'the skate park is the dog park would be too large for that location. He stated it appeared to have the most tree damage as well. An informal survey would be sent out following the Commission's review which would question the use of the park. Garden space will be expanded at some paint. Commissioners discussed Silverwood Park. Nielsen stated a separate e -mail will be sent identifying the date the shelter was constricted. Ische stated something needs to be done to keep basketballs from rolling into the pond. Mangold stated landscaping could solve that problem as well as the goose problem. Mangold asked for an update on the locks on the message boards. He stated there wasn't anything posted about Excelsior events. Mangold asked for an update on the bench project. Nielsen stated he would get an update. The bench has been ordered. PARK COMMISSION MINUTES TUESDAY, JUNE 10, 2014 PAGE > OF 6 Commssioners discussed Christmas Lake. Mangold stated long term items in the CIP need to be discussed at some point. He stated the Con nussion will add items as needed and juggle when necessary. Hartmann stated knowing the expected life span of equipment, etc. is very helpful. Such a list was already prepared. Nielsen stated that list can be updated. Mangold stated it is also important to create a list of our strictures, when they were constricted, and their replacement schedule. 8. COMMUNITY GARDEN UPDATE Mangold stated every space has been filled. He revieNved a chart shoeing many of the same gardeners are returning year after year. Commissioners discussed community garden locations, gardeners, fencing, and how plot sizes are determined. 9. DETERMINE LIAISONS FOR MEETINGS Commissioners volunteered to serve as liaison August - Ische September - Hartmann October - Savaell November - Dietz (tentative) December - ManMd 10. DETERMINE Commissioners discusses on Tuesday,, August 19. it. NEW BUSINE Concert in the Parr i F 12. STAFF AND L A. City Counci 13. GUST THROU CITY COUNCIL COMMISSION MEETING Park Commission meeting. The nevv meeting Neill be held N REPORTS /UPDATES Nielsen and Hotvet reported on recent City Council activity. B. Staff Public Works is swamped Nvth the high Nvater levels. 13. ADJOURN PARK COMMISSION MINUTES TUESDAY, JUNE 10, 2014 PAGE 6 OF 6 Hartmann moved, Sawtell seconded, to adjourn the Park Commission Meeting of June 10, 2014 at 8:45 p.m. Motion carried 4 -0. RESPECTFULLY SUBMITTED, Clai Reci CITY OF SHOREWOOD PLANNING COMMISSION MEETING TUESDAY, JUNE 3, 2014 MINUTES CALL TO ORDER Chair Geng called the meeting to order at 7:04 P.M. ROLL CALL COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. Present: Chair Geng; Commissioners Labadie, Maddy, and Muehlberg; and Planning Director Nielsen Absent: Commissioner Davis APPROVAL OF AGENDA Maddy moved, Muehlberg seconded, approving the agenda for June 3, 2014, as presented. Motion passed 4/0. APPROVAL OF MINUTES May 6, 2014 Maddy moved, Muehlberg seconded, approving the Planning Commission Meeting Minutes of May 6, 2014, as presented. Motion passed 4/0. 7:00 P.M. PUBLIC HEARING — MINOR SUBDIVISION /COMBINATION CONDITIONAL USE PERMIT AND VARIANCE Applicant: Peter and Marie Lehman Location: 21265/21285 Radisson Road Chair Geng opened the Public Hearing at 7:06 P.M., noting the procedures used in a Public Hearing. He stated this evening the Planning Commission is going to consider a minor subdivision/combination, variances and conditional use permit (C.U.P.) for Peter and Marie Lehman for the properties located at 21265 and 21285 Radisson Road. He explained the Commission is comprised of residents of the City of Shorevyood N-,-ho are serving as volunteers on the Commission. They are appointed by the City Council. The Commission's role is to help the City Council in determining zoning and planning issues. One of the Commission's responsibilities is to hold public hearings and to help develop the factual record for an application and to make a non - binding recommendation to the City Council. The recommendation is advisor`* only. Director Nielsen explained that Peter and Marie Lehman own the properties located at 21265 and 21285 Radisson Road. The properties are zoned R -IA/S, Single - Family Residential and are subject to shoreland management regulations. The 21285 property contains 7500 square feet of area and the 21265 property contains 38,758 feet of area. For the R -IA zoning district 40,000 square feet is the minimum required. The applicants' home is located on the 21265 property as Nyell as tNyo small cabins. There is one small cabin on the 21285 property. In addition to the very substandard area and N idth of the existing lots, CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 2 of 14 particularly the Nvesterly lot, four dwellings on two lots is inconsistent Nvith the current single - family zoning. The applicants' intent is to equalize the Nvidth and area of the two parcels, remove the existing very nonconforming small cabins, and build a new home on the newIN- enlarged westerly lot. He displayed an exhibit shoNving the size of the proposed lots. The applicants' plans necessitate the following zoning actions: Minor subdivision (a lot line rearrangement that Nvould change the configuration of the two lots) r Lot area variances - Reconfigured 21265 property (Tract A) — 24,848 square feet (40,000 square feet required) - Reconfigured 21285 property (Tract B) — 21,410 square feet (40,000 square feet required) r Lot «idth variances - Tract A — 81 feet (120 feet required) - Tract B — 90 feet (120 feet required) Building setback variances - Existing garage — 12.8 feet from east side (20 feet required) - Proposed new home — 35 feet from Merry Lane (50 feet required) Nvith required eave exception Conditional use permit (C.U.P.) to build a home on a substandard shoreland lot With regard to the analysis of the case, Nielsen stated the improvements over the current situation are quite drastic. They Neill bring things more towards conformity. He explained that prior to 2006 nonconforming structures and uses Nvere treated differently than they are today. It used to be that if one of the nonconforming structures Nvere demolished or destroyed to 50 percent or more of their value it could not be replaced. A lot of times cities including Shorewood Nvould Nvait out the situations and eventually someone Nvould Nvant to do something Nvith their property and they Nvould have to remove the nonconformity. In 2006 the legislature passed laws that allowed them to be put back to their former extent if destroyed (even if they Nvere intentionalIv taken doom). He explained the new house Nvill comply Nvith the rear yard setback and front yard setback. It Neill not comply Nvith the side yard setback against Merry Lane (35 feet instead of 50 feet). To mitigate that the applicants propose a landscape plan and staff recommends that initiating that plan be a condition of approval. Both properties Neill comply Nvith hardcover requirements (25 percent for shoreland lots). He then explained since the staff report Nvas distributed to the Planning Commission the Lehmans have asked for a couple of things. One Nvas a 15 foot variance rather than a 14 foot setback variance for the side yard abutting Merry Lane. Thev are also asking to keep the middle of the three cabins. Peter Lehman, 21265 Radisson Road, stated they had forgotten to include in the proposal that they Nvanted to keep the middle of their three cabins and that removing two cabins Nvill eliminate the nonconformity of four houses on two lots. He explained their intention is to sell their primary residence and they Nvant to live in the middle cabin while they stage their 21265 property and try to sell it. Once that property is sold they it Nvill determine their budget for building their new home on their 21285 property. He anticipates they will spend months Nvith an architect refining the plan for their new home. They intend to live on the 21285 property during that process. They Nvant to keep the middle cabin until their permit is pulled. They are trying to mitigate risk in the event there Nvould be, for example, a tragedy or health issue. The staff recommendations include demolishing the three cabins Nv thin 60 days of the release of the CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 3 of 14 resolution approving the rearrangement, variances and C.U.P. They have submitted a letter dated June 1, 2014, in response to the staff recommendations asking to keep the middle cabin until the new home can be constructed, and to be given one to three Nears to construct their new home. Director Nielsen explained that he had told the Lehmans that three Nears Nvas too long. He initially suggested that they could be given six months to take the third cabin doom. He explained he reviewed other requests v here someone Nvas alloN ed to keep a dv, elling N hile they built a neN -, one and then take the other dwelling doN -,n Nv thin one Near. That is consistent Nvith Nvhat the City Code requires for both variances and C.U.P.s. A person has one Near to use them. That same one Near Neill apply to the middle cabin they Nvant to use for a while. He clarified that the 60 -dav demolition recommendation for two of the cabins stands. He noted that the staff report contains a list of recommended conditions of approval Mr. Lehman noted his lots have been around since the 1940s. Thev first moved into their home 28 years ago this month. They Nvere married on the property and raised their three children there. Mr. Lehman provided some history about the area. He stated a public access Nvas put in at Christmas Lake in 1987. That access is directly to the south of their property. The Brooks addition to the east of their property Nvas developed in the 1980s. Seven new R -IA lots Nvere created at that time. Immediately to the east of that there are historical homes that Nvere rezoned to R -IA; they are all kind of small. Their home is in that category of homes on the north side of Christmas Lake. As part of the expansion of Highway 7 their property Nvas reduced in size bN-10 or 15 feet. Both properties Nvere affected by that expansion. There Nvas a Christmas Shores development to the Nvest of their properties along Merry Lane to the Nvest of the public access Nvith R -IA lots. At that time Merry Lane Nvas expanded. It Nvas moved further to the east closer to their property. He stated that he and his Nv fe are primarily concerned about mitigating their risk. Should something happen they do not Nvant to be left Nvith an empty lot. They do not think they should be forced to have a vacant lot should an event occur in their lives that is outside of their control. He highlighted changes he proposed for the staff report dated May 28, 2014. Zoning Code Compliance Item 4 — change the 14 -foor side yard variance to 15 -foot (35 feet instead of 50 feet) to accommodate a three -foot eave. Recommendation Item 6 — change the demolition of the small cabins to demolition of two of three small cabins. He thought getting rid of two of three small cabins Nv thin 60 days is reasonable. Also there is text in the Item about them potentially living in one of the cabins while their new home is built. They no longer intend to live on the 21285 property Nvhile the new home is being built. The middle cabin is Nvhere the new home Nvould be built. When construction is to begin the cabin Nvill be demolished. Recommendation Item 8 — it states that "Upon recording of the minor subdivision the applicants have one Near to make use of the variance and conditional use permit." They asked that be changed to three Nears. Economic conditions can change quickly. Mr. Lehman asked the Planning Commission to accept the changes he proposed to the staff report and to recommend approval of their requests. Chair Geng thanked Mr. Lehman and noted his annotations on the staff report Nvere helpful. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 4 of 14 Seeing no one present to comment on the case, Chair Geng opened and closed the Public Testimony portion of the Public Hearing at 7:29 P.M. Commissioner Labadie stated approving the Lehmans request for three Nears is a bad precedent to set. She noted that she appreciates some of the concerns about risk (e.g., the economy, the housing market) conveyed. She stated Director Nielsen indicated that in the past the City has alloNved one Near. She thought that is reasonable. Director Nielsen noted the ordinance has a provision that allows the applicant to come back to the City before the one Near is up for the C.U.P. and request a 6 -month extension. That gives the applicants 18 months to sell their 21265 property. Commissioner Labadie stated that additional 6 months addresses some of their concerns. She noted that she has no problems Nvith the rest of the applicants' requests. She thought the proposal is fantastic. Removing the cabins and constructing another home Nvould improve the neighborhood. Chair Geng stated he Nvould echo Commissioner Labadie's comments Nvith respect to the one Near time limit on the C.U.P. especially since learning the applicants can ask for a 6 -month extension before the one year is up. He recommended two cabins be demolished Nvithin 60 days and the middle cabin be left standing for no more than one Near. Director Nielsen stated Recommendation Item 6 talks about getting a bid for the demolition of the cabins. That bid should include all three. Chair Geng commended the applicants for coming fonvard Nvith their plan. The improvements Nvill reduce the nonconformity substantialIv. He stated he thought their plan is beautiful. He appreciates the Nvork that has gone into it. The landscape plan is Nvell thought out and appropriate to the area. Commissioner Maddv stated if for some reason the applicants do not make the Near or possibly 18 -month deadline he asked if the City Nvould take the middle cabin doom. Director Nielsen responded the applicants Nvould; the letter or credit or escrow Nvould guarantee that. If they did not there Nvould be an escrow agreement stating the City would then do that using their money. Maddy asked if the applicants Nvould have to get building permits within 18 months if they did not build Nvithin that time. Director Nielsen explained that if they did not build Nvithin that time they Nvould have to reapply for variances and the C.U.P. to build on the 21285 lot. Chair Geng stated the request to keep the middle cabin longer than 60 days Nvas not part of the original application. Director Nielsen stated the timing of the demolition is not in the notice anvvmv. Commissioner Muehlberg noted that he agrees that it should be a one Near time limit Nvith the opportunity for another six months. He stated there is a lot of risk for anyone building a new home. He commented he had been in the position of ooming two homes for 18 months and that Nvas a difficult situation. Mr. Lehman stated if they had just applied for a lot line rearrangement without applying for variances and a C.U.P. for a new home and if he Nvas Nvilling to remove two of three cabins to get rid of that nonconforming use he asked the Planning Commission if it Nvould have recommended approval. The nonconforming use is the four house /cabins on two properties. That is one of the Nvorst types of zoning nonconformities. He then stated he does not think it is unreasonable to keep one 600- square -foot cabin on the second property they ovm. He noted the Nvorst case is he has a 600- square -foot cabin on that property and the best case is he has a 4000 - square -foot house Nvith an attached garage on it. For the best case the CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 5 of 14 hardcover Nvould be Nvay up. He stated having the one cabin there is not going to cause anyone any harm. He noted he finds it unreasonable to ask him to remove a good house on a lot. He stated leaving it on the property helps him mitigate his risk. He asked that be taken into serious consideration. Commissioner Maddy stated he did travel doN -,n that path of consideration. If two cabins Nvere removed and there Nvas one small cabin on larger lot everyone Nvould be better off. But, if that Nvere the scenario then the applicant Nvould not have any rights to the reduced setbacks to build a house on that lot. By the applicants guarantying the third cabin Nvill be gone Nvithin the stated time the City is Nvilling to relax its rules to allow the applicant a reasonable amount of time to build house on the lot. There is a trade. Chair Geng concurred there is a trade. It is not all take on the part of the City. He stated the Planning Commission and Council have to be mindful of when it does grant variances. It is not just a variance at a single point in time. He then stated that the applicants had pointed out that a similar variance Nvas granted in the not too distant past. He noted he appreciates the applicants' concern about risk. But, that has to be balanced Nvith public policy. Commissioner Labadie stated there is one proposal before the Planning Commission this evening. It can either recommend approval or denial. The possibility of hypotheticals is not before the Commission. Maddy moved, Labadie seconded, recommending approval of Peter and Marie Lehman's request for a minor subdivision /combination, variances and conditional use permit for their properties located at 21265 and 21285 Radisson Road subject to the conditions identified in the Staff report and allowing the middle cabin to stay standing for up to one year. Motion passed 4/0. Director Nielsen stated this item Nvill go before the City Council on June 23, 2014. Mr. Lehman clarified that the staff report recommendation has identified three items that must be submitted Nvithin 30 days before their applications Nvill be scheduled to go before the City Council. Chair Geng closed the Public Hearing at 7:44 P.M 2. 7:15 P.M. PUBLIC HEARING — CONDITIONAL USE PERMIT Applicant: Northern State Power Company (Xcel Energy) Location: 5505 Country Road 19 Chair Geng opened the Public Hearing at 7:44 P.M., noting the same procedures folloNved for the previous public hearing Nvill be folloNved again. He stated this evening the Planning Commission is going to consider a conditional use permit (C.U.P.) for additional accessory buildings for Northern States PoNver Company (aka Xcel Energy) for its property located at 5505 County Road 19. Director Nielsen explained that Xcel Energy proposes to add two equipment storage buildings to their site. Because "governmental and public regulated utility buildings and structures" are listed as conditional uses in the Shorewood Zoning Code, Xcel is requesting a C.U.P., pursuant to Section1201.22 Subd. 4.e. of the Code. He noted that Xcel has been a good neighbor. The property is zoned C -1, General Commercial. The property contains approximately 5.63 acres of land; 5.04 acres of it are in Shorewood and the remainder is in Tonka Bay. It is currently occupied by the Xcel Service Center, which includes the Nvest metro offices, maintenance garage and storage building. Land use and zoning surrounding the site are as follows. North: LRT Trail, then a landscape business in Tonka Bay; zoned commercial CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 6 of 14 East: School bus garage and Xcel storage building in Tonka Bay, zoned commercial South: Shopping Center in Tonka Bay, zoned commercial West: Two - family dwellings and apartments; zoned R -C, Residential - Commercial Xcel's principal building (offices and maintenance garage) contains 31.432 square feet of area. Xcel is proposing to add two new buildings. The southerly building Neill be 72 feet by 72 feet and Nvill contain 5184 square feet of area. The northerly building Neill be 104 feet by 41 feet and Neill contain 4264 square feet. The larger, southerly building Nvill be 26 feet high and the northerly structure Nvill be 21 feet high. Nielsen revieNved how the applicant's request complies Nth the conditions stipulated in Section 1201.22 Subd. 4.e. and Section 1201.22 Subd. 41 of the Shorewood Zoning Code. A. Section 1201.22 Subd. 4.e. sets forth four criteria for the type of use being proposed (governmental and public regulated utility buildings and structures). 1. The Service Center has historically been compatible Nvith nearby residential activities (primarily to the Nvest of County Road 19). The proposed buildings comply Nvith C -1 standards. The minimum front setback is 30 feet. The proposed buildings are 108 feet and 203 feet back from the front property line. The northerly building is 20.8 feet from the side lot line, where only 15 feet is required. 2. Outdoor storage of vehicles and equipment is entirely enclosed by a fence. There are some places Nvhere the screening is not very good (it is just a chain link fence) so the storage yard is quite visible. The new buildings Nvill mitigate some of that; some of the equipment Nvill be stored inside. Additional screening and landscaping is provided adjacent to residential uses. This is Nvhere the existing facility and the proposed plans are somewhat lacking. The existing site plan shows some sort of vegetation along the Nvest side of the existing parking lot, outside the fence. The parking and storage of equipment is quite visible from County Road 19 and from the residential properties to the Nvest. Those areas need to be screened better. Staff has strongly recommended the applicant have a professional landscape plan prepared addressing this item that fills in some of those gaps. The landscape plan should be a condition of approval. 4. The proposed use of the site is consistent Nth the Shorewood Comprehensive Plan and Nvith the C -1 zoning of the property. B. Section 1201.22 Subd. 41 of the Zoning Code allows for open and outdoor storage as an accessory use in the C -1 District. For the most part the property does comply Nvith that. 1. Outdoor storage does not take up more than 30 percent of the site area and it occupies less area than the first floor of the principal building. In this regard, the proposed buildings actually improve the site by providing indoor space for much of the equipment storage. 2. Fencing and screening Nvere addressed in Item A.3 above. 3. Screening from the public right- of -Nvay Nvas addressed in A.3 as Nvell. 4. Storage areas are surfaced to control dust. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 7 of 14 5. Landscaping Nyas addressed in A.3. 6. Proposed lighting plans indicate that tNyo of the existing pole fixtures on the site Nyill be replaced by Nyall- mounted, dovricast fixtures on the southerly building. The photometric plans indicate that the light levels Nyill be Nyell Nyithin the Zoning Code standards of no more than 0.4 foot - candles at the property line. 7. Parking for the site is considered to be adequate and the proposed buildings are not taking up existing parking areas. Nielsen noted that based on the analysis of the case staff recommends that the C.U.P. for Northern States PoNyer Company be granted subject to the applicant submitting a landscape plan addressing the issues raised in the Staff report and recommendations made in in the City Engineer's report both dated May 29, 2014. Commissioner Labadie stated the meeting packet contains a copy of the proposed traffic circulation graphic. She asked if there are any concerns about it. Director Nielsen stated that circulation is the same as the existing circulation. Xcel Neill continue to use the same Nyay on to and off of the property. Chair Geng asked the Xcel representative if he had any issues Nyith anv of the items identified in the City Engineer's report. Brian Fitzgerald, Nyith TKDA Architects and Engineers, stated that his firm can develop a concept for a landscape plan that can be revieNyed Nvith Director Nielsen prior to the City Council meeting N-,-hen this Nyill be considered. Commissioner Maddy asked Mr. Fitzgerald if the ovmers expressed concern about the suggested screening. There is a lot of copper and metal on that site. And, Nyith more screening it Nyill reduce the ability to see if there are anv devious people on the site. Mr. Fitzgerald stated he has not heard any concerns expressed about that. He noted the yard area Nyhere everything is stored is fenced in. And there are security cameras that are monitored. Commissioner Muehlberg stated the staff reports states that the tNyo neNy buildings Nyill be used to house vehicles and equipment that are currently kept outside in the storage yard. He asked if there are plans to increase the amount of equipment. Mr. Fitzgerald clarified that some of the vehicles that Neill be housed in the neNy buildings are currentIv housed in the existing building. That Neill free up space in the existing building for some of the additional equipment that is on site. He stated that some of Xcel's trucks have increased in size over the Nears and they no longer fit Nyell in the existing building. He noted the neNy buildings are not being built to bring more trucks or additional staff to the site. Seeing no one present to comment on the case, Chair Geng opened and closed the Public Testimony portion of the Public Hearing at 7:57 P.M. Commissioner Maddv asked if the Planning Commission Nyants to see the landscape plan or should Council just make the call. Commissioner Labadie stated she is okay Nvith it going to Council Nyithout the Commission's revieNy. Chair Geng stated he thought it prudent to have Director Nielsen look at it first. In response to a question from Geng, Nielsen explained if the plan is not available before the June 23 Council meeting then the City Neill have to send the applicant a letter informing them that the City cannot satisA- the 60 -day rule. Mr. Fitzgerald stated Xcel Nyould like the application to be considered during CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 8 of 14 Council's June 23 meeting. Nielsen noted for that to happen the landscape plan has to be summited to the Citv by June 18. Maddy moved, Labadie seconded, recommending approval of the conditional use permit for accessory buildings for Northern States Power, 5505 County Road 19, subject to the conditions identified in the Staff report and the City Engineer's report both dated May 29, 2014, and the applicant submitting a professional landscape plan to the Planning Director by June 18. Motion passed 4/0. Chair Geng closed the Public Hearing at 8:01 P.M. 3. MINOR SUBDIVISION /COMBINATION (LOT LINE REARRANGEMENT) Applicant: Darin Busch Location: 5360 /5366 Vine Hill Road Chair Geng noted that if the Planning Commission makes a recommendation this evening this item Nvill go before the City Council on June 23, 2014. Director Nielsen explained that Darin Busch and Philip Dritsas own the properties located at 5360 and 5366 Vine Hill Road, respectively. Mr. Busch Nvants to purchase 20 feet of Mr. Dritsas' property to enlarge his property southward. Both properties are located in the R -1C, Single - Family Residential zoning district. The Busch property contains 20,001 square feet of area, exclusive of road easement, and the Dritsas property contains 47,489 square feet, exclusive of road and Nvetland conservation easements. Upon completion of the lot line rearrangement the property sizes Nvill be 23,001 square feet for the Busch property and 44,489 square feet for the Dritsas property. Both lots Nvill meet or exceed the requirements of the Zoning Code. The only complication is that the existing drainage and utility easements along the current common lot line must be vacated. That requires the City Council to hold a public hearing. Replacement easements Neill be recorded Nth the minor subdivision/combination. Nielsen noted that staff recommends approval of the minor subdivision/combination and vacation of existing easements subject to the applicant's attorney preparing deeds for the new easements and an up- to -date title opinion for the property. Darin Busch, 5360 Vine Hill Road, explained the only reason for doing this is to address an encroachment issue he caused about six years ago when he had a fire pit professionally installed by landscape architects. A few years later he realized the lot line Nvas not Nvhere he thought it Nvas. He and Mr. Dritsas discussed it at that time and Mr. Dritsas stated some day Nvhen he Nvants to sell his property the encroachment issue should be resolved. Nov,- is that time because Mr. Dritsas has put is property up for sale. They have agreed to a price for him to purchase a small strip of land from Mr. Dritsas. He noted there is a permanent easement on his property on file for the driveway access. Chair Geng told Mr. Busch that he appreciated his candor. He commended him for Nvorking Nvith his neighbor. He stated he thought it Nvas nice that the neighbors could Nvork things out. He then stated this is a perfect example of whN- the City needs to permit the construction of that type of fire pit. Director Nielsen explained the City implemented a zoning permit system in 2013 for things like patios, fences and other things not covered by the City Zoning Code. In response to a question from Mr. Busch, Director Nielsen explained that the public hearing for vacating the easements Nvill be held on June 23. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 9 of 14 Commissioner Maddv asked if the culvert maintenance easement will be affected. Director Nielsen responded no. Labadie moved, Maddy seconded, recommending approval of the minor subdivision for Philip Dritsas, 5366 Vine Hill Road, and the combination of the 3000 square -foot strip of that property with the property located at 5360 Vine Hill Road owned by Darin Busch as well as the easement vacations subject to the applicant's attorney preparing deeds for the new easements and an up -to- date title opinion for the property and after receiving a certified copy of the resolution approving the subdivision /combination the applicant must record the division with Hennepin County within 30 days. Motion passed 4/0. 4. MINOR SUBDIVISION /COMBINATION (LOT LINE REARRANGEMENT) Applicant: William Zucco Location: 4485/4545 Enchanted Point Director Nielsen explained that William Zucco oN -,ns the property located at 4485 Enchanted Point. He proposes to sell the easterly 50 feet of his property to Elizabeth Larsen, the oN -,ner of the property located at 4545 Enchanted Point. Both properties are located in the R -1C /S, Single - Family Residential/Shoreland zoning district. It requires a minimum lot size of 20,000 square feet. The Zucco property currently contains 96,480 square feet of area and the Larsen property contains 29,290 square feet. Upon completion of the lot line rearrangement, the Zucco property Nvill contain 80,565 square feet of area and the Larsen property Nvill contain 45,205 square feet of area. He then explained the first condition of approval in the staff report Nvas for the survey to be revised to include additional right- of -N -mv across the northerly 21.3 feet of the Larsen property. Mr. Zucco has told him that Ms. Larsen does not Nvant to give up any of the property. The Upper Lake Minnetonka Yacht Club property across the street is subdividable; it could create more than one lot. Based on that, he recommends dropping the first and second conditions of approval. Nielsen noted that staff recommends the applicant's request be approved, subject to the folloNving conditions. 1. The applicant's surveyor should prepare legal descriptions for drainage and utility easements as shoN -,n on the proposed subdivision/combination. 2. The applicant's attorney must prepare deeds for the proposed drainage and utility easements. 3. The applicant's attorney must prepare an up -to -date (within 30 days) title opinion for review by the City Attorney. They can provide a title commitment rather than a title opinion if preferred. 4. Items 1 — 3 must be completed Nvithin 30 days, after Nvhich the request Nvill be revieNved by the City Council. Upon his receipt of a certified copy of the resolution approving the subdivision/combination the applicant must record the division Nvith Hennepin County Nvithin 30 days. Director Nielsen noted that the earliest this item can go before the City Council is June 23, 2014. In order to make that date the applicant must provide the City Nvith the information above by June 18. Bill Zucco, 10348 Wildwood Road, Bloomington, clarified he is one of three siblings that oN -,n the 4485 Enchanted Point property. The property- is in trust with his mother. He explained the property Nvas CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 10 of 14 purchased in June 1921. His grandfather put the road in on Enchanted Island before there Nvas a bridge. The reason they are doing Nvhat they are is to preserve the Nvoods; that Nvould have been very important to his mother. They have Nvaited five years to get to this point. Chair Geng stated preserving the Nvoods is a commendable thing for Mr. Zucco and his two siblings to do. Commissioner Maddy stated he is confused about the easement issue. He asked if the City is relaxing its policy of requiring easements. Director Nielsen explained that Nvhen the City has substandard right -of- Nvay (ROW) a subdivision provides an opportunity to acquire that. It is a little more difficult Nvith existing development than Nvith new development Nvhen additional lots are created. This proposed subdivision/combination is not creating any new lots. If a division of the property across the road Nvere to occur it Nvould create at least one additional lot. When, if, that property is subdivided the City Nvill acquire the additional ROW to bring Enchanted Point up to standard ROW Nvdth. Muehlberg moved, Labadie seconded, recommending approval of the minor subdivision for William Zucco, 4485 Enchanted Point, and the combination of that easterly 50 feet of that property with the property located at 4545 Enchanted Point owned by Elizabeth Larsen subject to the conditions recommended by staff listed above (Items 3 — 6 in the staff report). Motion passed 4/0. 5. REVIEW DRAFT ORDINANCE REGARDING ELDERLY HOUSING Director Nielsen apologized for not getting the draft ordinance regarding elderly housing to the Planning Commission before the meeting. He noted that he Nvould not have done that if the changes Nveren't relatively simple and if they had not been discussed during the Commission's last meeting on May 6 (as detailed in the minutes of that meeting). He explained that during that meeting changes Nvere discussed that might incent developers to build decent projects in Shorewood and most importantly on the SmithtoN -,n Crossing Redevelopment Area. During panel discussions about the SmithtoN -,n Crossing Redevelopment Study developers stated the alloNvable density of that area is too low to have an effective project in the City. The City's ordinance does allow elderly housing in virtually all of the residential districts including the R- lA and R -113 zoning districts which are single family large lot districts. By conditional use permit (C.U.P.) someone could build an elderly housing project of up to four units per acre in those two districts. That Nvould be somewhat unlikely because they Nvould have to have three acres to do a project and they could only build 12 units. For the R -1C, R -ID, R -2A, R -213 and R -2C zoning districts eight units per acre are alloNved. The R -2 districts allow twin homes (two family dwellings). The R -3A, R -313 and R -C districts allow apartment buildings. He revieNved the changes he made to the Zoning Code based on Nvhat the Planning Commission had discussed. The first change is in Section 1201.03 Subd. 20.b(8)(c). The density Nvas changed to 12 units per acre from 10 units for the R -3A, R -313 and R -C districts. Twelve units per acre is somewhat on the loNver end of Nvhat some other communities around the area allow. The folloNving provisions Nvere added to Section 1201.03 Subd. 20.b(8). (d) For purposes of calculating density, assisted living units shall be counted as one -half unit. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 11 of 14 (e) SmithtoN -,n Crossing Redevelopment Area. For projects that implement and effectuate the goals, objectives and guidelines of the SmithtoN -,n Crossing Redevelopment Study, through site planning, architecture, building materials and landscaping, the folloNying provisions may apply (i) AlloNyable density may be increased to 15 units per acre. (ii) For projects that include a mixture of commercial and residential uses, the area of the entire site may be used to calculate density. (iii) The density for adjacent parcels Nyithin the Redevelopment Study Area may be transferred to the project site. In Section 1201.03 Subd. 5.h(8) Elderly Housing the provision of the tNyo parking spaces per unit Nyas deleted and the following two provisions Nyere added. (a) ToNvnhouse or cottage style housing: tNyo parking spaces per unit (b) Apartments: one and one -half parking spaces per unit, plus proof of parking demonstrating the ability to provide tNyo spaces per unit. He stated if the Planning Commission is agreeable he Nyill schedule a public hearing for the changes for the Commission's JuIv 1 meeting. Chair Geng stated if a developer Nyanted to take advantage of the density transfer from the City-- oN -,ned parcel in the SmithtoN -,n Crossing Redevelopment Study Area he asked if the developer Nyould have to purchase that parcel. Director Nielsen responded not necessarily. Nielsen explained if the developer Nyas unsuccessful in acquiring the other residential property in the Area the City s parcel does not fit Nyith the Area. The City could put eight units on its parcel. The City could transfer seven units of density to the developer and then sell the property for a single family home. Commissioner Maddy asked if that Nyould require rezoning that property. Nielsen clarified that the property is already zoned R -1C. Geng noted that the Planning Commission discussed getting the proposed ordinance amendment before City Council as soon as possible. He asked if there is any serious interest in developing the SmithtoN -,n Crossing Redevelopment Area. Director Nielsen stated there could potentially be something for the Planning Commission to discuss as early as its July 1 meeting. Nielsen explained that developer has done a traffic study for tNyo of its projects. It used the Institute of Traffic Engineers (ITE) manual as part of its study. The manual assigns traffic counts to various land uses. The ITE manual states single family homes generate 8 — 10 trips per day (that count includes deliveries to the home). The City uses that also. ToNvnhouses generate less traffic; the City uses 5 - 8 trips per day per unit for them. Senior housing generate a little over 2 trips per day per unit. In response to a question from Commissioner Muehlberg, Director Nielsen stated that out of the 3 — 4 developers he has spoken Nyith the majority have spoken about mixed use development. Depending on hoNy big the project could be they have spoken about independent living, assisted living and care facilities. There is a shortage of all of them in the City. Another developer Nyas considering a cooperative where people oN -,n the units. That one Nyould be all independent living apartment style. Because the ordinance amendment Nyould count assisted living units as one -half unit that helps make a project feasible. Most developers are looking at 60 — 90 units for a site that size. The City should be able to accommodate that. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 12 of 14 Commissioner Maddv asked if assisted living includes memory care. Director Nielsen clarified they are separate. Care facilities have more intense employee requirements. In response to another question, Nielsen stated for tNyo assisted living units there Nyould have to be 1.5 parking spaces and the developer Nyould have to provide proof of parking. The proof of parking Nyould have to be more than one -half space. Nielsen noted that he has to reNyord Section 1201.03 Subd. 5.h.(8)(b). Maddy clarified the proof of parking does not have to be an actual parking space; there just needs to be room to add the parking space if the use of the development changes to a condominium or apartment for example. Commissioner Muehlberg stated he has no idea how many employees Nyould be needed for an assisted living facility. When he looked at that type of facility in another city he Nyas surprised by the number of people N-,-ho Nyorked there. The parking lot Nyas quite full during the middle of the day. Chair Geng stated Nyhen his late father lived in that type of unit the parking lot Nyas quite full on Nyeekends. Muehlberg stated that a lot of people in assisted living have to use motorized Nyheelchairs. He asked hoNy they Nyould get across County Road 19. Nielsen stated that project Nyould have a pedestrian circulation and that Nyould get residents to the corner and then there is a crossNyallc at the intersection of County Road 19 and SmithtoN -,n Road. Director Nielsen stated he Nyill ask the developer who did the traffic studies for information about parking for other projects. Nielsen asked the Planning Commission if the draft amendment he presented accurately reflects Nyhat the Commission had discussed. Commissioner Muehlberg asked Nyhat section 1203.03 Subd.20.b(12) means. Specifically the Nyords " vyhere alloNyed ". Director Nielsen explained that if the City alloys apartment style independent there has to be an elevator. Chair Geng noted that he can support holding a public hearing on the draft ordinance amendment on JuIv 1. He questioned if the public Nyould understand the proof of parking concept. Director Nielsen stated he Nyill do a sketch to help people understand that. Geng suggested that Nielsen just have that available should someone ask Nyhat it means. He cautioned against doing that voluntarily because he does not Nyant residents to think that area Nyould be developed for an apartment. Director Nielsen stated during SmithtoN -,n Crossing Redevelopment Study panel discussions in Nyhich a number of developers N-,-ho had done some relatively large projects participated the developers recommended the alloNyable height be increased for the project area. That original Study document included that. But, after hearing resident concerns that 45 -foot height requirement Nyas taken out. The maximum height requirement is nosy 40 feet for that site. Commissioner Labadie stated she likes that the Nyord "mav" is used in the neNy provisions in Section 1203.03 Subd.20.b(8). It gives the City flexibility. There Nyas Planning Commission consensus to schedule a public hearing for its July 1 meeting Director Nielsen stated he hopes there is not a proposal for the SmithtoN -,n Crossing Redevelopment Study Area for the July 1 meeting. If there is a proposal the Planning Commission Nyould have to consider it as if the ordinance amendment Nyere approved and as if it Nyere not approved by Council. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 13 of 14 6. DETERMINE LIAISONS TO COUNCIL FOR JUNE THROUGH DECEMBER 2014 Council Liaisons Nvere selected as folloNved June 2014 Chair Geng JuIv 2014 Commissioner Muehlberg August 2014 Commissioner Labadie September 2014 Commissioner Maddv October 2014 Commissioner Davis 7. MATTERS FROM THE FLOOR There Nvere no matters from the floor presented this evening. 8. OLD BUSINESS / NEW BUSINESS Commissioner Labadie asked Nvhat is going on Nvith the proposed Summit Woods planned unit development (PUD). Director Nielsen stated he thought the developer hoped to bring the Final Plan Stage before Council during its June 23 meeting. But, he is not sure that is possible because the City has to receive the plans 20 days before the meeting. Director Nielsen explained there had been concern expressed about the Nvay the drivevmy for the northern lot in the PUD came onto the street. Council asked staff to assess if the drivewav should be moved. Staff did that and determined that based on the geometry there it is best for the driveNvay to be as far north as possible if Summit Avenue remains open in that area. It is a moot point if the cul -de -sac option is chosen for improvements to that roadvmv. Commissioner Muehlberg asked about the cracks in Summit Avenue. Director Nielsen stated the developer Nvill have to repair any damages it makes to Summit Avenue. Director Nielsen stated anv decision about improvements to Summit Avenue is on hold until the City receives the results of a Minnesota Department of Transportation (MnDOT) traffic study. He commented that he does not think that the residents who complained about Summit Avenue Nvant it changed. Chair Geng asked Nvhat is going on Nvith the proposed LRT Trail overpass at County Road 19. Director Nielsen revieNved some of the concerns staff had about Nvhat is being proposed by the Three Rivers Park District (as detailed in the minutes of the May 12, 2014, Council meeting). There Nvas discussion about the dangers of crossing at street level now and in the future if the refuge island is taken out (that is what Hennepin County plans on doing). Commissioner Labadie asked if there have been a lot of accidents at the trail crossing near the Minnewashta School. Labadie then asked if the oN -,ner of the MST Car Guv business is going to open up the bicycle repair shop. Director Nielsen stated that the person who had Nvorked Nth that person Nvas going to do that instead until he heard that the American Legion may have to terminate a lease within a Near or two. CITY OF SHOREWOOD PLANNING COMMISSION MEETING June 3, 2014 Page 14 of 14 9. DRAFT NEXT MEETING AGENDA Director Nielsen stated there is a public hearing for the Elderly Housing ordinance amendment slated for the July 1, 2014, meeting agenda. There may be some trail items on the agenda. There Neill also be some study session items discussion on the agenda. 10. REPORTS • Liaison to Council • SLUC • Other 11. ADJOURNMENT Labadie moved, Maddy seconded, Adjourning the Planning Commission Meeting of June 3, 2014, at 9:12 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED Christine Freeman, Recorder #8A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Authorize Preparation of Feasibility Report and Professional Services Contract for Smithtown Road (East) Trail Project Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Reviewed by: Paul Nornby Attachments: Location Map WSB Proposal /Contract Policy Consideration: Should the City explore the feasibility of constructing a trail along Smithtown Road between the LRT Trail and the intersection of Smithtown Road and County Road 19? Background: Smithtown Road (East), from the LRT Trail to the intersection of Smithtown Road and County Road 19 is the next segment of trail identified from the City's Trail Implementation Plan. The next step is to authorize WSB to prepare the feasibility study for this segment. It is worth noting that the cost estimates in the attached proposal include preliminary design and feasibility, topographic survey and wetland delineation. Both sides of the street will be surveyed to determine which side is best for the trail. Financial or Budget Considerations: In the attached WSB proposal, Paul Nornby estimates the cost of the three items to be $31,274. Options: Direct WSB to prepare a feasibility report for the segment of trail between the LRTTrail and the intersection of Smithtown Road and County Road 19; pick a different trail segment; or do nothing. Recommendation / Action Requested: Staff recommends that the City Council authorize a feasibility study for Smithtown Road and enter into a professional services agreement as set forth in the attached WSB proposal. Next Steps and Timelines: We are somewhat ahead of last year's schedule. Considering the potential right -of -way acquisition involved in this segment, ordering the feasibility study at this time allows time for construction plans to be drawn and, perhaps more importantly, for easements to be acquired. Judging from our past efforts, this can be quite time - consuming. In this regard, the sooner the feasibility report is done, the better. Based on the current trail schedule, the feasibility report will be completed by 22 August, after which the Planning Commission will review it and make its recommendation to the Council on 2 September. The Council is scheduled to review /approve the feasibility report on 8 September. Connection to Vision / Mission: Trails contribute to quality public services, a healthy environment and attractive amenities. IIIIIII� 111111 • -• - Ili ■� � 1� , , , , 11■ ■ ■ ■ ■� � � Psi . ■ � - �i� ■ ■■ . • . ' ... , . , . � ■1111 =� ; \ 1111111 _ __ Minnewashta- ��11 • •� � � �■ ■ ■ • ■ /II ■ ■ - ■ School mill 111 ! 1 �© - ■ ■ ■ ■■ / �� N A 0 500 1,000 Shorewood Planning Department 06/14 2,000 Feet SITE LOCATION Smithtown Road (East) Trail Segment "'dz A..r..rr &.U'V,carrt-s' h . engineering - plan ning- e,,nvir inen tat -cons tr cti June 19, 2014 Mr. Brad Nielsen Planning Director City of Shorewood 5755 Country Club Road Shorewood, MN 55331 477 Temperance Street St. Paul, MN 55101 Tel : 651 - 286 -8450 Fax 651-286-8488 Re: Proposal for Feasibility Report, Preliminary Design, and Wetland Delineation Services Smithtown Road East Sidewalk Extension Project City of Shorewood Dear Mr. Nielsen: WSB & Associates, Inc. is pleased to provide you with our proposal for the preparation of a Feasibility Report, Preliminary Design, and Wetland Delineation for the Smithtown Road East Sidewalk Extension Project. The proposed improvements are for the extension of a pedestrian walkway extension east along Smithtown Road East from Eureka Road at the LRT Trailhead to CR 19. Project Understanding Smithtown Road East Sidewalk Extension Project has been identified in the 2014 Capital Improvement Plan for construction. Included with this proposal is the completion of the topographic survey and wetland delineation. This information will be utilized for the preliminary design and preparation of the Feasibility Report in accordance with the Trail Planning Process recently revised and presented to the City Council. The Feasibility Report for the project is proposed to: • Provide a preliminary horizontal and vertical alignment for an off - street pedestrian route between the Eureka Road at the LRT Trailhead and CR19, along Smithtown Road East. • Provide preliminary design detail to prepare a detailed opinion of probable project costs • Identify potential for funding resources • Identify potential need for the acquisition of permanent and temporary easements Review opportunities to improve area drainage Review opportunities to improve water quality of storm water runoff Proposed Services Project management and coordination /meetings with City staff and the City Council. Attendance of two public open house meetings with residents to receive concerns and comments regarding the design approach and proposed design. The goal is to have an open house before beginning preliminary design and one meeting prior to Feasibility Report presentation to the Council. Attend one Public Hearing on the Feasibility Report. St. Cloud • Minneapolis • St. Paul Equal Opportunity Employer wsbeng.com H Pioposals SI od \Tia I \S nithtmii Road East - Frol -_ I - Feasibilih Report Stu-- dock Mr. Brad Nielsen June 28, 2013 Page 2 • Coordinate location of private utility company facilities within the improvement corridor. This coordination will include performing a utility design locate request to provide a quality level D location for existing utilities. • Complete a topography survey to identify surficial information /landmarks, existing grades, property corners /lines, public /private utility locations. This information will not constitute an official boundary survey. • Prepare preliminary layout and design based upon public comments, City staff review and engineering judgment for discussion with the Council. Preliminary layout will be a representation of horizontal and vertical alignments with potential construction limits shown and potential construction conflicts. Make minor revisions based upon Council direction. • Prepare preliminary drainage review and feasibility level drainage design • Identify owners of parcels along the proposed improvement corridor that may be impacted by construction. • Identify parcels with potential temporary and permanent easement needs. • Prepare detailed preliminary opinion of potential construction and indirect project costs with contingencies but excluding costs of acquisition of land due to the variability in land costs. • Prepare preliminary project schedule. • Prepare a Feasibility Report depicting the improvement corridor existing conditions, proposed improvements, funding requirements and resources, figures depicting the improvements, and feasibility statements regarding the improvements. • Complete a delineation of the existing wetlands adjacent to the project area. We are proposing to complete the work on a cost - reimbursable basis in accordance with our current fee schedule. Estimated fees for: Preliminary Design /Feasibility Report Preparation Topographic Survey Wetland Delineation Total Fee In the Amount of $19,472 $ 7,152 $ 4.650 $31,274 Thank you for this opportunity to provide professional consulting services to the City of Shorewood. If this proposal is acceptable, please execute the signature block below and return as our authorization to proceed. Please do not hesitate to contact me at 651- 286 -8453 if you have any questions. Sincerely, WSB & Associates, Inc. Paul Hornby, P.E. Senior Project Manager H Pioposals SI —ood \Tia I \S n dit— Road East - Frol -_ I - Feasibilih Report Stn-- dock Mr. Brad Nielsen June 28, 2013 Page 3 PROPOSAL FOR: Preliminary Design /Feasibility Report Preparation, Survey, and Wetland Delineation Services — Smithtown Road East Sidewalk Extension Project ACCEPTED BY: City of Shorewood, MN Name Title Date H Pioposals SI —ood \Tia I \S nidit— Road East - Frol -_ I - Feasibilih Report Stn-- dock City of Shorewood Council Meeting Item Title / Subject: Zucco — Proposed Subdivision /Combination Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Reviewed by: Brad Nielsen Attachments: Planning Director's Memorandum Draft Resolution Policy Consideration: Should the City approve a minor subdivision /combination (lot line rearrangement) for Bill Zucco? MEETING TYPE Regular Meeting Background: Bill Zucco proposes to subdivide property owned by his mother's estate, conveying the easterly 50 feet of the property at 4485 Enchanted Point to the owner of 4545 Enchanted Point (see Planning Director's memorandum, attached, for detailed background). The Planning Commission reviewed this application at its 3 June meeting and recommended to approve the division /combination. The Planning Director withdrew his earlier recommendation to acquire additional right -of -way from the adjoining lot, since there is subdividable property on the other side of the street. Financial or Budget Considerations: None. Since no new lots are being created, there are no park dedication fees or local sanitary sewer access charges required. The application fee paid by the applicant covers the cost of processing. Options: Approve the division /combination; or deny the request. Recommendation / Action Requested: Staff recommends approval of the division /combination. Next Steps and Timelines: The applicant must record the attached resolution within 30 days of its certification. Connection to Vision / Mission: Quality public services. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Memorandum Re: Zucco /Larsen — Subdivision and Combination 29 May 2014 The applicant's surveyor should prepare legal descriptions for drainage and utility easements as shown on the proposed subdivision/combination. 4. The applicant's attorney must prepare deeds for the new road right -of -way and the proposed drainage and utility easements referenced in 1. — 3., above. The applicant's attorney must prepare an up -to -date (within 30 days) title opinion for review by the City Attorney. 6. Items 1 -5, above, must be completed within 30 days, after which the request will be reviewed by the City Council. Upon his receipt of a certified copy of the resolution approving the division/combination the applicant must record the division with Hennepin County within 30 days. Cc: Bill Joynes Tim Keane Bill Zucco -2- a� CD o LL N r -p O z o o 0 CD M Bent lo.kj � N / &PO ct as J a C � U W > t J U) d -s Exhibit A SITE LOCATION U PROPOSED LOT LINE REARRANGEMENT & MINOR SUBDIVISION FOR WILLIAM ZUCCO & ELIZABETH LARSEN IN LOTS 15, 16, 17, 20 & 21, ENCHANTED PARK LAKE MINNETONKA HENNEPIN COUNTY, MINNESOTA n Jo ) 0 30 60 120) 24 o� ) Wu SCALE IN FEET Z 1 )� \� loll - i4- ov ,- --�— o \ \\ -•••.-- ..,_ -. ) EXISTING ZUCCO'PARCEL \\ -- 96480 + - S.F. EXISTING - +- - -... ). \ \ / 80565 S.F. PROPOSED ! '` )10 10 ! ° PROPOSED DRAINAGE AND UTILITY EF EMENTS-- --- ---� O 1 ) Gr2 \\ �) )) a j avD P . 0� % 70 �EMF7F l DO N ) z 10,5 )� / ! ) 'Ba) / XwE•7.L PROPOSED PARCEL 2 �2 / m / ) r • GbING TO LARSEN 1,5915+-S.F. . za.6 9.6 / ro ) J / ) N HOUSEG zo *4485 -7 1 1 z3a ) ) ) DECK m 242 EXISTING LARSEN PARCEL 45205 + - S.F. PROPOSED ..... !... 0 9 )! LAKE MINN &T EXISTING ZUCCO PROPERTY ZUCCO PROPERTY AFTER TRANSFER Lot 15: Lot 15; That part of Lot 16, Block 1, tying southerly of the northerly -21.30 feet thereof; That part of Lot 16, Block 1, lying southerly of the northerly 21.30 feet of said Lot 16, and west Lot 20 except that part thereof which Iles easterly of a fine drawn from the point of intersection of of the East 50.00 feet of said Lot 16; the South line of the North 21 -30 feet of said Lot 16 with the East line of said Lot 20, to a point on the North line of said Lot 20 distant 25.58 feet Westerly, as measured along said North line, Lot 20 except that part thereof which lies Basted drawn of a line dwn from the Dint of intersection of from the Northeast comer of said Lot 2D; d the Sourh line of the North 21.30 feet of said Lot 16 with the East line of s Lot 20, to a point rn on the North line of said Lot 20 distant 25.58 feet Westerly, as measured along said North line, r%S Lot 21 except that part lying northerly of the following described Gne: Commencing at the from the Northeast comer of said Lot 20; ' Southwest comer of the North Half of the West Half of said Lot21; thence on an assumed Lot 21 except that part lying northerly of the following described line: Commenting at the bearing of South 48 degrees 06 minutes 12 seconds East along the South line of said North 6. Half of the West Half a distance of 14.00 feet to the point of beginning ofthe line being • � Southwest comer or the North Half of the West Half of said Lot 21; thence on an assumed �- described- thence North f 1 degrees 48 minutes DD seconds East a distance of 25.92 feet; bearing of South 48 degrees 06 minutes 12 seconds East along the South fine of said North M thence along a tangential curve concave to the East having a'radius of73.00 feet and central Half of the West Half a distance of 14.60 feet to the point of beginning of the line being W angle of 33 degrees 35 minutes 00 seconds a distance of 4279 feet to a point of compound described; thence North 11 degrees 48 minutes 00 seconds East a distance of 25.92 feet curvature- thence along a tangential cave concave to the southeast having a radius of 35.00 thence along a tangential curve concave to the East having a radius of 73.00 feet and central feet to its intersection with the West fine of the East Half of said Lot 21; thence easterly to a angle of 33 degrees 35 minutes 00 seconds a distance of 4279 feet to a point of compound curvature; thence along a tangential curve concave to the southeast having a radius of 35.0o point on the North line a said East Half of Lot o distant East Half, easterly, as measured along , feet to its intersection with the West line of the East Half of said Lot 21; thence easterly to a said North fine, from the most northerly comer of said East Half, and said line there ending; point on the North line of said East Half of lot 21 distant 34.13 feet easterly, as measured along All in ENCHANTED PARK LAKE MINNETONKA said North line, from the most northerly comer of said East Half, and said line there ending; EXISTING LARSEN PROPERTY All in ENCHANTED PARK LAKE MINNETONKA Lot 17, ENCHANTED PARK LAKE MINNETONKA LARSEN PROPERTY AFTER TRANSFER PARCEL TO BE TRANSFERRED FROM ZUCCO TO LARSEN Lot 17, ENCHANTED PARK LAKE MINNETONKA The East 50.00 feet of that part of lot 16, ENCHANTED PARK LAKE MINNETONKA tying The East 50.00 feet of that part of Lot 16, ENCHANTED PARK LAKE MINNETONKA lying southerly of'the'northerly 21.30'feet thereof. southerly of the northerly 21.30 feet - thereof. Iron marker found o :Iron marker set Bearings shown are based upon an assumed datum A REVISIONS DESIGNEE DRAWN I hereby certify that this surrey, plan, or report s ar wpreparedbymermder mydirectsuper^sion and that I am a duly Licensed land Surveyor under the laws of the State of Minnesota. DATE s s -i MINN. UCENSENUM2F ass Dale 5-15-14 \01 GRONBERG & ASSOCIATES , I N C CIVIL ENGINEERS, LAND SURVEYORS, LAND PLANNERS 445 N. WILLOW DRIVE LONG LAKE, MN 55356 PHONE: 952 - 473 -4141 FAX: 952 - 473 -4435 REMARKS 1 =30 14-128 HE � � CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION APPROVING SUBDIVISION AND COMBINATION OF REAL PROPERTY WHEREAS, the Alice D. Zucco Trust - Mary Anne Grams, Trustee, and Elizabeth B. Larsen are the owners of certain real properties in the City of Shorewood, County of Hennepin, State of Minnesota, legally described in Exhibit A, attached hereto and made a part hereof, and WHEREAS, William C. Zucco (Applicant), on behalf of the owners has applied to the City for a subdivision and combination of said real properties into two parcels legally described in Exhibit B, attached hereto and made a part hereof, and WHEREAS, the subdivision and combination requested by the Applicant complies in all respects with the Shorewood Zoning Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: 1. The real properties legally described in Exhibit A be divided into two parcels, legally described in Exhibit B, attached hereto and made a part hereof. 2. The City Cleric fiirnish the Applicant with a certified copy of this resolution for recording purposes. 3. The Applicant records this resolution together with the drainage and utility easements, legally described in Exhibit C, attached, with the Hennepin County Recorder or Registrar of Titles within thirty (30) days of the date of the certification of this resolution. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 2-1 day of June 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk Existing Legal Descriptions Zucco Parcel: Lot 15; That part of Lot 16, Block 1, lying southerly of the northerly 21.30 feet thereof, Lot 20 except that part thereof which lies easterly of a line drawn from the point of intersection of the South line of the North 2 1.3 0 feet of said Lot 16 with the East line of said Lot 20, to a point on the North line of said Lot 20 distant 25.58 feet Westerly, as measured along said North line, from the Northeast corner of said Lot 20; Lot 21 except that part lying northerly of the following described line: Commencing at the Southwest corner of the North Half of the West Half of said Lot 21; thence on an assumed bearing of South 48 degrees 06 minutes 12 seconds East along the South line of said North Half of the West Half a distance of 14.00 feet to the point of beginning of the line being described; thence North 11 degrees 48 minutes 00 seconds East a distance of 25.92 feet; thence along a tangential curve concave to the East having a radius of 73.00 feet and central angle of 33 degrees 35 minutes 00 seconds a distance of 42.79 feet to a point of compound curvature; thence along a tangential curve concave to the southeast having a radius of 35.00 feet to its intersection with the West line of the East Half of said Lot 21; thence easterly to a point on the North line of said East Half of Lot 21 distant 34.13 feet easterly, as measured along said North line, from the most northerly corner of said East Half, and said line there ending; All in ENCHANTED PARK LAKE MINNETONKA Larsen Parcel: Lot 17, ENCHANTED PARK LAKE MINNETONKA Exhibit A Proposed Legal Descriptions Zucco Parcel: Lot 15; That part of Lot 16, Block 1, lying southerly of the northerly 21.30 feet of said Lot 16, and west of the East 50. 00 feet of said Lot 16; Lot 20 except that part thereof which lies easterly of a line drawn from the point of intersection of the South line of the North 2 1.3 0 feet of said Lot 16 with the East line of said Lot 20, to a point on the North line of said Lot 20 distant 25.58 feet Westerly, as measured along said North line, from the Northeast corner of said Lot 20; Lot 21 except that part lying northerly of the following described line: Commencing at the Southwest corner of the North Half of the West Half of said Lot 21; thence on an assumed bearing of South 48 degrees 06 minutes 12 seconds East along the South line of said North Half of the West Half a distance of 14.00 feet to the point of beginning of the line being described; thence North 11 degrees 48 minutes 00 seconds East a distance of 25.92 feet; thence along a tangential curve concave to the East having a radius of 73.00 feet and central angle of 33 degrees 35 minutes 00 seconds a distance of 42.79 feet to a point of compound curvature; thence along a tangential curve concave to the southeast having a radius of 35.00 feet to its intersection with the West line of the East Half of said Lot 21; thence easterly to a point on the North line of said East Half of Lot 21 distant 34.13 feet easterly, as measured along said North line, from the most northerly corner of said East Half, and said line there ending; All in ENCHANTED PARK LAKE MINNETONKA Larsen Parcel: Lot 17, ENCHANTED PARK LAKE MINNETONKA The East 50.00 feet of that part of Lot 16, ENCHANTED PARK LAKE MINNETONKA lying southerly of the northerly 21.30 feet thereof. Exhibit B Proposed Drainage and Utility Easements - Legal Descriptions Zucco Parcel: An easement for drainage and utility purposes over, under and across the easterly, northerly and westerly 10 feet of the following described property: Lot 15; That part of Lot 16, Block 1, lying southerly of the northerly 21.30 feet of said Lot 16, and west of the East 50. 00 feet of said Lot 16; Lot 20 except that part thereof which lies easterly of a line drawn from the point of intersection of the South line of the North 21.30 feet of said Lot 16 with the East line of said Lot 20, to a point on the North line of said Lot 20 distant 25.58 feet Westerly, as measured along said North line, from the Northeast corner of said Lot 20; Lot 21 except that part lying northerly of the following described line: Commencing at the Southwest corner of the North Half of the West Half of said Lot 21; thence on an assumed bearing of South 48 degrees 06 minutes 12 seconds East along the South line of said North Half of the West Half a distance of 14.00 feet to the point of beginning of the line being described; thence North 11 degrees 48 minutes 00 seconds East a distance of 25.92 feet; thence along a tangential curve concave to the East having a radius of 73.00 feet and central angle of 33 degrees 35 minutes 00 seconds a distance of 42.79 feet to a point of compound curvature; thence along a tangential curve concave to the southeast having a radius of 35.00 feet to its intersection with the West line of the East Half of said Lot 21; thence easterly to a point on the North line of said East Half of Lot 21 distant 34.13 feet easterly, as measured along said North line, from the most northerly corner of said East Half, and said line there ending; All in ENCHANTED PARK LAKE MINNETONKA. Larsen Parcel: An easement for drainage and utility purposes over, under and across the easterly, northerly and westerly 10 feet of the following described property: Lot 17, ENCHANTED PARK LAKE MINNETONKA The East 50.00 feet of that part of Lot 16, ENCHANTED PARK LAKE MINNETONKA lying southerly of the northerly 21.30 feet thereof. Exhibit C #8C MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Summit Woods — Final Plat /Final Plan Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Attachments: City Engineer's Memorandum Draft Resolution /Development agreement Policy Consideration: Should the City approve the final plat and final plan for the Summit Woods P.U.D.? Background: Having received Concept and Development Stage approvals, Homestead Partners has now applied for Final Plat and Final Pat approval for its Summit Woods P.U.D. project. The City Engineer has reviewed the plans and his comments are contained in the attached memorandum. Conditions previously recommended have been incorporated into the development agreement attached to the draft resolution. Financial or Budget Considerations: Staff is unable to speculate on the increased tax base that will be generated by the project. Application fees will cover the processing of the application. The project will generate $15,000 in park dedication fees and $3600 in local sanitary sewer access charges. Options: Approve the resolution and development agreement; revise the development agreement; or deny the application. Recommendation / Action Requested: Staff recommends approval of the resolution and development agreement. Next Steps and Timelines: The applicant has 30 days to record the resolution, development agreement and protective covenants for the P.U.D., during which time, he must provide the necessary letter of credit or cash escrow to guarantee that required improvements and landscaping will be completed. Connection to Vision / Mission: Attractive amenities and a sustainable tax base Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 "'dz & .U'V,t alri-s' h . engineering -planning- e,,nvir :nrn tat -cons tructi Memorandum To: Brad Nielsen, Planning Director, City of Shorewood From: Paul Hornby, P.E., City Engineer Date: June 19, 2014 Re: Summit Woods Development Project — Final Plat/Plan Review W.SB Project No. 01459 -83 477 Temperance Street St. Paul, MN 55101 Tel : 651 - 286 -8450 Fax 651-286-8488 The following comments are with regard to engineering review for the Summit Woods PUD Final Plat and Final Constriction Plans submitted by Homestead Partners. The project plans were prepared by Terra Engineering, Inc., dated May 20, 2014, and Final Plat prepared by Demars- Gabriel Land Surveyors, Inc. The plans contain the existing conditions, existing topography and soil conditions, preliminary site plan, preliminary plat, utility plan, grading /erosion control plan, tree preservation plan, erosion control details and grading notes, details, tree removals, and landscape plan. General Items: The plat does not show the conservation easement, however some Counties view this as a setback that needs a separate easement document. The conservation easement will need o be recorded by the method the County requires. 2. The constriction plans indicate that that the roadway in front of Lots 2 through 4 will drain to the east to the rain gardens to maintain no net increase in impervious area draing downstream on Summit Avenue. The remaining areas of Summit Avenue will have a bituminous shoe -curb as detailed. Grading Plan Items: a. The Development Agreement needs to include certification by record survey that the constricted rain garden meets volume requirements approved on the plan for each lots. b. All permit requirements of the MCWD shall be included in the City plan requirements. A copy of the MCWD permit and approval letter is to be provided to the City. St. Cloud • Minneapolis • St. Paul Equal Opportunity Employer wsbeng.com h \01459 830.Ad,,lr, I)oe, TIE[NIO - PTH BNielseti- 061914 -I)e elopmetit Phase Plzi R � Final Plat Plan Submittzl.dock Brad Nielsen, City of Shorewood Summit Woods Development Plan Review June 19, 2014 Page 2 4. The rain garden features need to include a maintenance agreement with a home owners association or individual property owners, recorded with the property to ensure the basins are managed, maintained and function as intended. h \01459-830 A hnn, D— AIEMO - PTH BNid-i- 061911 - Development Phase Plan R-- Final Plat Plan Submittal. dock CITY OF SHOREWOOD RESOLUTION NO. A RESOLUTION APPROVING THE FINAL PLAT AND FINAL PLAN OF SUMMIT WOODS P.U.D. WHEREAS, the final plat of Summit Woods has been submitted in the manner required for the platting of land under the Shorewood City Code and under Chapter 462 of Minnesota Statutes, and all proceedings have been duly had thereunder; and WHEREAS, said plat is consistent with the Shorewood Comprehensive Plan and the regulations and requirements of the laws of the State of Minnesota and the City Code of the City of Shorewood. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: 1. The plat of Summit Woods is hereby approved. 2. The approval is specifically conditioned upon the Developer recording the Development Agreement — Summit Woods Planned Unit Development, attached hereto as Attachment I, and made a part hereof, along with the Conservation Easement described in Exhibit C of the Development Agreement, with the Hennepin County Recorder: 3. The Mayor and City Clerk are authorized to execute the Certificate of Approval for the plat on behalf of the City Council. 4. The final plat, together with this resolution and the documents described in 2. above shall be recorded within thirty (30) days of the date of certification of this Resolution. 5. The final plat, together with the Development Agreement referenced in 2. above, shall constitute the final plan for the Summit Woods P.U.D. BE IT FURTHER RESOLVED, that the execution of the Certificate upon said plat by the Mayor and City Clerk shall be conclusive, showing a proper compliance therewith by the subdivider and City officials and shall entitle such plat to be placed on record forthwith without fiirther formality, all in compliance with Minnesota Statutes and the Shorewood City Code. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June 2014. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk CITY OF SHOREWOOD DEVELOPMENT AGREEMENT SUMMIT WOODS PLANNED UNIT DEVELOPMENT THIS AGREEMENT, made this day of 2014, by and between the CITY OF SHOREWOOD, a Minnesota municipal corporation, hereinafter referred to as the "City ", and Homestead Partners, LLC, a limited liability corporation, hereinafter referred to as the "Developer ". WHEREAS, the Developer has an interest in certain lands legally described in Exhibit A, attached hereto and made a part hereof, which lands are hereinafter referred to as the "Subject Property "; and WHEREAS, Developer proposes to develop the Subject Property by means of a Planned Unit Development ( "P.U.D. ") consisting of four single- family residential lots; and WHEREAS, the Developer has made application for a conditional use permit for a Planned Unit Development (P.U.D.) with the Zoning Administrator and submitted a Concept Plan and Development Stage Plan for the property, which matters were considered by the Planning Commission at public hearings held on 1 October 2013 and 4 March 2014, respectively; and WHEREAS upon recommendation of the Shorewood Planning Commission, the City Council did consider and grant Concept Plan and Development Stage Plan approvals at its regular meetings held on 9 December 2014 and 14 April 2014, respectively; and WHEREAS, the Developer has filed with the City the Final Plat for "Summit Woods ", a copy of which plat is attached hereto and made a part hereof as Exhibit B; and NOW, THEREFORE, in consideration of the mutual covenants and guarantees contained herein, the parties hereto agree as follows: 1.) Conditions of Approval - The Developer shall comply with the conditions of approval as set forth in the Planning Director's Memorandum, dated 26 February 2014 and the City Engineer's Memorandum, dated 25 March 2014, both of which memoranda are on file in the Shorewood City offices. In addition, development of the P.U.D. is subject to the requirements of the R -1C, Single- Family Residential zoning district, except as modified herein. a. Use of Conservation Easement Area: The Developer shall grant a conservation easement, acceptable in form to the City of Shorewood, over the land described in Exhibit C, attached hereto. The land described in Exhibit C shall not be buildable. The conservation easement shall be recorded contemporaneously with the final plat. The Developer shall provide the City with a drawing showing the Attachment I 1 limits of the construction easement on the property, including locations of proposed easement stakes and signage, as approved by the City's Planning Director. b. Site Grading. Individual building sites, including private driveways, are to be graded to preserve the maximum number of trees on each site, and shall conform with the grading plan, dated 20 May 2014, prepared by Terra Engineering, Inc. Driveway Construction — Lot 1. The driveway for Lot 1 shall be located as far north on the lot as possible, but no closer than five feet from the property line. Design and grading for the driveway shall be subject to review and approval by the City Engineer. d. Building Setbacks. Building setbacks for the proposed lots shall be consistent with the R -1C, Single- Family Residential zoning district except as follows: (1) Lot 1 —front setback: 20 feet (2) Lot 2 — front setback: 35 feet (3) Lot 3 — front setback: 40 feet (4) Lot 4 — front setback: 40 feet Driveway Pullouts. Each driveway shall have a pullout adequate in length and width to allow a car to turn around in the driveway so as to facilitate the vehicle facing forward as it enters the street. 2.) Improvements Installed by Developer - Developer agrees at its expense to construct, install and perform all work and furnish all materials and equipment in connection with the installation of the following improvements: All site grading including building pad correction where needed; b. Expansion of the travelled surface of Summit Avenue including grading, stabilizing and bituminous surfacing and curbing; Sanitary sewer; d. Storm sewer and surface water drainage facilities; Required landscaping and reforestation; consistent with the plans and specifications prepared by Terra Engineering, Inc., dated 20 May 2014, and received and approved by the City Engineer. 2 It is understood that underground utility lines, including gas, electric, telephone, and television cable shall be installed by the respective private utility companies pursuant to separate agreements with the Developer. It is understood that the improvements installed by the Developer do not include street lighting. Plans for street lighting shall require separate review and approval by the City Council prior to installation. 3.) Final Plat, Grading, Drainage and Utility Plan. - The Developer has filed with the City Clerk the final plat titled Summit Woods for the development of the Subject Property. Said plat is attached hereto and made a part hereof as Exhibit B. Said final plat, together with the grading, drainage, and utility plans, referenced in paragraph 2 above, this Development Agreement, the Conservation Easement — attached hereto as Exhibit C and the Declaration of Covenants, Conditions & Restrictions — referenced in paragraph 31, below, is herewith adopted and approved by the City as the Developer's final plan for development of the property. 4.) Pre - construction Meeting - Prior to the commencement of construction, Developer or its engineer shall arrange for a pre - construction meeting to be held at Shorewood City Hall. Such meeting shall be coordinated with the City Engineer and shall include all appropriate parties specified by the City Engineer. 5.) Standards of Construction - Developer agrees that all of the improvements set forth in paragraph 2 above, shall equal or exceed City standards, shall be constructed and installed in accordance with engineering plans and specifications approved by the City Engineer and the requirements of applicable City ordinances and standards, and that all of said work shall be subject to final inspection and approval by the City Engineer. 6.) Materials and Labor - All of the materials to be employed in the making of said improvements and all of the work performed in connection therewith shall be of uniformly good and workmanlike quality, shall equal or exceed City standards and specifications, and shall be subject to inspection and approval of the City. In case any materials or labor supplied shall be rejected by the City as defective or unsuitable, then such rejected materials shall be removed and replaced with approved materials, and rejected labor shall be done anew to the satisfaction and approval of the City at the cost and expense of Developer. 7.) Schedule of Work - The Developer shall submit a written schedule in the form of a bar chart indicating the proposed progress schedule and order of completion of work covered by this Agreement. It is understood and agreed that the work set forth in paragraph 2 shall be performed to be completed by 1 October 2014, except for required landscaping, which must be completed by 1 June 2015. Upon receipt of written notice from the Developer of the existence of causes over which the Developer has no control, which will delay the completion of the work, the City, at its discretion, may extend the dates specified for completion. Construction of the required improvements and the homes within the plat shall be limited to the hours between 7:00 A.M. and 6:00 P.M. Monday through Friday and 8:00 A.M. and 6:00 P.M. 3 on Saturdays. No construction shall take place on Sundays without prior authorization from theCity. 8.) As -Built Plan - Within sixty (60) days after the completion of construction of the Improvements, Developer shall cause its engineer to prepare and file with the City a full set of "as- built" plans, including a mylar original and two (2) black line prints, showing the installation of the Improvements within the plat. Failure to file said "as- built" plans within said sixty (60) day period shall suspend the issuance of building permits and certificates of occupancy for any further construction within the plat. 9.) Easements - Developer, at its expense, shall acquire all easements from abutting property owners necessary to the installation of the sanitary sewer, storm sewer, and surface water drainage facilities within the plat, and thereafter promptly assign said easements to the City. 10.) Pre - existing Drain Tile - All pre - existing drain tile disturbed by Developer during construction shall be restored by Developer. 11.) Staking, Surveying and Inspection - It is agreed that the Developer, through its engineer, shall provide for all staking and surveying for the above - described improvements. In order to ensure that the completed improvements conform to the approved plans and specifications, the City will provide for resident inspection as determined necessary by the City Engineer. 12.) Grading, Drainage, and Erosion Control - Developer, at its expense, shall provide grading, drainage and erosion control plans to be reviewed and approved by the City Engineer. Said plans shall provide for temporary dams, earthwork or such other devices and practices, including seeding of graded areas, as necessary, to prevent the washing, flooding, sedimentation and erosion of lands and streets within and outside the plat during all phases of construction. Developer shall keep all streets within, and adjacent to, the plat free of all dirt and debris resulting from construction therein by the Developer, its agents or assignees. The grading plans for the subject property include the use of rain gardens at the rear of each lot. The builder on each lot shall be required to record a plan for the design of the rain garden and provide a certification by the landscape architect stating that the rain garden has been installed according to the approved plan. Prior to issuance of building permits within the plat the City shall require escrow deposits of $500 for each lot to ensure that erosion control barriers, construction limits and tree preservation measures are continually maintained. If builders fail to maintain said barriers, limits or tree preservation measures the City may cause its agents to enter the Property and perform such maintenance. Said escrows shall be used to reimburse the City for any expense incurred in maintaining such barriers, limits and measures. 13.) Street Signs - Developer, at its expense, shall provide standard city street identification signs and traffic control signs in accordance with the Minnesota Manual on Uniform Traffic Control Devices, as directed by the City Engineer. 11 14.) Access to Residences - Developer shall provide reasonable access, including temporary grading and graveling, to all residences affected by construction until the improvements are accepted by the City. In addition, the developer shall manage construction in accordance with the Construction Management Plan: Summit Woods, Shorewood, dated 19 June 2014. 15.) Occupancy Permits - The City shall not issue a certificate of occupancy until all Improvements set forth in paragraph 2 are completed and approved by the City Engineer. If landscaping or tree replacement has not been completed when the certificate of occupancy is requested, the developer shall provide the City with a letter of credit or cash escrow for one and one half the amount of the estimated cost of the landscaping or tree replacement. The letter of credit or cash escrow shall extend for two growing seasons after the work has been completed. 16.) Final Inspection - At the written request of the Developer, and upon completion of the Improvements set forth in paragraph 2 above, the City Engineer, the contractor, and the Developer's engineer will make a final inspection of the work. When the City Engineer is satisfied that all work is completed in accordance with the approved plans and specifications, and the Developer's engineer has submitted a written statement attesting to same, the City Engineer shall recommend that the improvements be accepted by the City. 17.) Conveyance of Improvements - Upon completion of the installation by Developer and approval by the City Engineer of the improvements set forth in paragraph 2 above, the Developer shall convey said improvements to the City free of all liens and encumbrances and with warranty of title, which shall include copies of all lien waivers. Should the Developer fail to so convey said improvements, the same shall become the property of the City without further notice or action on the part of either party hereto, other than acceptance by the City. 18.) Replacement - All work and materials performed and furnished hereunder by the Developer, its agents and subcontractors, found by the City to be defective within one year after acceptance by the City, shall be replaced by Developer at Developer's sole expense. Within a period of thirty (30) days prior to the expiration of the said one -year period, Developer shall perform a televised inspection of all sanitary sewer lines within the plat and provide the City with a VHS videotape thereof. 19.) Restoration of Streets, Public Facilities and Private Properties - The Developer shall restore all City streets and other public facilities and any private properties disturbed or damaged as a result of Developer's construction activities, including sod with necessary black dirt, bituminous replacement, curb replacement, and all other items disturbed during construction. Prior to the start of construction, the streets serving the property shall be televised so as to ascertain what damage may be caused by construction traffic. 20.) Reimbursement of Costs - The Developer shall reimburse the City for all costs, including reasonable engineering, legal, planning and administrative expenses incurred by the City in connection with all matters relating to the administration and enforcement of the within Agreement and the performance thereof by the Developer. Such reimbursement of costs shall be 5 made within thirty (30) days of the date of mailing of the City's notice of costs to the address set forth in paragraph 28 below. 21.) Claims for Work - The Developer or its contractor shall do no work or furnish no materials not covered by the plans and specifications and special conditions of this Agreement, for which reimbursement is expected from the City, unless such work is first ordered in writing by the City Engineer as provided in the specifications. Any such work or materials which may be done or furnished by the contractor without such written order first being obtained shall be at its own risk, cost and expense. 22.) Surety for Improvements - Deposit or Letter of Credit - For the purpose of assuring and guaranteeing to the City that the improvements to be constructed, installed and furnished by the Developer as set forth in paragraph 2 above, shall be constructed, installed and furnished according to the terms of this Agreement, and to ensure that the Developer submit to the City as -built plans as required in paragraph 8 and that the Developer pay all claims for work done and materials and supplies furnished for the performance of this Agreement, the Developer agrees to furnish to the City either a cash deposit or an irrevocable letter of credit approved by the City in an amount equal to 150% of the total cost of said Improvements estimated by the Developer's engineer and approved by the City Engineer. Said deposit or letter of credit shall remain in effect for a period of one year following the completion of the required improvements. The deposit or letter of credit may be reduced in amount at the discretion of the City upon approval by the City Engineer of the partially completed Improvements, but in no event shall the deposit or letter of credit be reduced to an amount less than 150% of the cost of the remaining Improvements. At such time as the Improvements have been approved by the City, such deposit or letter of credit may be replaced by a maintenance bond. 23.) Insurance - The Developer shall take out and maintain during the life of this agreement public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of the Developer's work or the work of their subcontractors, or by one directly or indirectly employed by any of them. This insurance policy shall be a single limit public liability insurance policy in the amount of $2,000,000.00. The City shall be named as additional insured on said policy and the Developer shall file a copy of the insurance coverage with the City. Prior to commencement of construction of the Improvements described in paragraph 2 above, the Developer shall file with the City a certificate of such insurance as will protect the Developer, his contractors and subcontractors from claims arising under the workers' compensation laws of the State of Minnesota. 24.) Laws, Ordinances, Regulations and Permits - Developer shall comply with all laws, ordinances, and regulations of all regulatory bodies having jurisdiction of the Subject Property and shall secure all permits that may be required by the City of Shorewood, the State of Minnesota, the Minnehaha Creek Watershed District, and Metropolitan Council Environmental Services before commencing development of the plat. 31 25.) Local Sanitary Sewer Access Charges (LSSAC) - Developer shall, prior to release of the final plat by the City, make a cash payment to the City in the sum of $3600 ($1200 for each lot) as local sanitary sewer access charges. Credit has been given for Lot 2, Block 1 with the existing house on it. 26.) Municipal Water. — The City of Shorewood does not have municipal water available to the site, and the City of Chanhassen has chosen not to extend its water system to serve the subject property. Domestic water supply to the proposed lots shall be provided by individual private wells. 27.) Park Fund Payment - Developer shall, prior to release of the final plat by the City, make a cash payment to the City in the sum of $15,000 (3 x $5000) for the Park Fund. Credit has been allowed for Lot 2, Block 1. 28.) Notices - All notices, certificates and other communications hereunder shall be sufficiently given and shall be deemed given when mailed by certified mail, return receipt requested, postage prepaid, with proper address as indicated below. The City and the Developer by written notice given by one to the other, may designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Agreement. Unless otherwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows: To the City: Zoning Administrator CITY OF SHOREWOOD 5755 Country Club Road Shorewood, Minnesota 55331 With a Copy to: Shorewood City Attorney c/o Kutak Rock, LLP 220 South 6h Street, Suite 1750 Minneapolis, Minnesota 55402 To the Developer: Homestead Partners, LLC 525 15'' Avenue South Hopkins, MN 55343 29.) Proof of Title - Developer shall furnish a title opinion or title insurance commitment addressed to the City guaranteeing that Developer is the fee owner or has a legal right to become fee owner of the Subject Property upon exercise of certain rights and to enter upon the same for the purpose of developing the property. Developer agrees that in the event Developer's ownership in the property should change in any fashion, except for the normal process of marketing lots, prior to the completion of the project and the fulfillment of the requirements of this Agreement, Developer shall forthwith notify the City of such change in ownership. Developer further agrees that all dedicated streets and utility easements provided to City shall be free and clear of all lens and encumbrances. 7 30.) Indemnification - The Developer shall hold the City harmless from and indemnify the City against any and all liability, damage, loss, and expenses, including but not limited to reasonable attorneys' fees, arising from or out of the Developer's performance and observance of any obligations, agreements, or covenants under this Agreement. It is further understood and agreed that the City, the City Council, and the agents and employees of the City shall not be personally liable or responsible in any manner to the Developer, the Developer's contractors or subcontractors, materialmen, laborers, or any other person, firm or corporation whomsoever, for any debt, claim, demand, damages, actions or causes of action of any kind or character arising out of or by reason of the execution of this Agreement or the performance and completion of the work and Improvements hereunder. 31.) Declaration of Covenants, Conditions and Restrictions - Developer shall provide a copy of the Declaration of Covenants, Conditions and Restrictions, which Declaration shall include the City as a signatory thereto, for review and approval by the City prior to recording. 32.) Remedies Upon Default - a. Assessments. In the event the Developer shall default in the performance of any of the covenants and agreements herein contained and such default shall not have been cured within thirty (30) days after receipt by the Developer of written notice thereof, the City may cause any of the improvements described in paragraph 2 above to be constructed and installed or may take action to cure such other default and may cause the entire cost thereof, including all reasonable engineering, legal and administrative expense incurred by the City to be recovered as a special assessment under Minnesota Statutes Chapter 429, in which case the Developer agrees to pay the entire amount of such assessment within thirty (30) days after its adoption. Developer further agrees that in the event of its failure to pay in full any such special assessment within the time prescribed herein, the City shall have a specific lien on all of Developer's real property within the Subject Property for any amount so unpaid, and the City shall have the right to foreclose said lien in the manner prescribed for the foreclosure of mechanic's liens under the laws of the State of Minnesota. In the event of an emergency, as determined by the City Engineer, the notice requirements to the Developer prescribed by Minnesota Statutes Chapter 429 shall be and hereby are waived in their entirety, and the Developer shall reimburse the City for any expense incurred by the City in remedying the conditions creating the emergency. b. Performance Guaranty. In addition to the foregoing, the City may also institute legal action against the Developer or utilize any cash deposit made or letter of credit delivered hereunder, to collect, pay, or reimburse the City for: (1) The cost of completing the construction of the improvements described in paragraph 2 above. (2) The cost of curing any other default by the Developer in the performance of any of the covenants and agreements contained herein. n. (3) The cost of reasonable engineering, legal and administrative expenses incurred by the City in enforcing and administering this Agreement. Legal Proceedings. In addition to the foregoing, the City may institute any proper action or proceeding at law or at equity to abate violations of this Agreement, or to prevent use or occupancy of the proposed dwellings. 33.) Headings - Headings at the beginning of paragraphs hereof are for convenience of reference, shall not be considered a part of the text of this Agreement, and shall not influence its construction. 34.) Severability - In the event any provisions of this Agreement shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. 35.) Execution of Counterparts - This Agreement may be simultaneously executed in several counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument. 36.) Construction - This Agreement shall be construed in accordance with the laws of the State of Minnesota. 37.) Successors and Assigns - It is agreed by and between the parties hereto that the Agreement herein contained shall be binding upon and inure to the benefit of their respective legal representatives, successors, and assigns. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on the day and year first above written. DEVELOPER CITY OF SHOREWOOD Matt Hanish, Its Vice President Scott Zerby, Its: Mayor ATTEST: I City Clerk STATE OF MINNESOTA ss. COUNTY OF HENNEPIN On this day of , 2014, before me, a Notary Public within and for said County, personally appeared Scott Zerby and Jean Panchyshyn, to me personally known, who, being each by me duly sworn, did say that they are respectively the Mayor and City Clerk of the municipal corporation named in the foregoing instrument, and that said instrument was signed and sealed on behalf of said corporation by authority of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA ss. COUNTY OF HENNEPIN On this day of , 2014, before me, within and for said County, personally appeared Matt Hanish, the Developer, described in and who executed the foregoing instrument and acknowledged that it executed the same as its free act and deed. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Shorewood Planning Department EDITED BY: Shorewood City Attorney Kutak Rock, LLP 220 South 6h Street, Suite 1750 Minneapolis, Minnesota 55402 (TJK) 10 EXISTING LEGAL DESCRIPTION Lots 7 and 8, and that part of Lot 9 lying Southwesterly of a straight line drawn from the most Easterly corner of said Lot 9 to a point on the Northerly boundary line of said Lot 9 which point is 125 feet Easterly from the most Northerly corner of said Lot 9 and that part of Lot 10 commencing at the Southeast corner of said Lot 10, thence Northeasterly along the line between Lots 9 and 10 to the Northeast corner of said Lot 10, thence Northwesterly along the North line of said lot a distance of 265 feet; thence South 239 feet to the Northerly line of Summit Avenue; thence East 131 �/z feet to the place of beginning, all in Murray Hill. Exhibit A 11 KNOW BY ALL PERSONS THESE PRESENTS: That Homestead Partners, L.L.C., a Minnesota limited liability company, fee owners, of the following described property: Lots 7 and 8, and that part of Lot 9 lying Southwesterly of a straight line drawn from the most Easterly corner of said Lot 9 to a point on the Northerly boundary line of said Lot 9 which point is 125 feet easterly from the most Northerly corner of said Lot 9 and that part of Lot 10 commencing at the southeast corner of said Lot 10, thence northeasterly along the line between Lots 9 and 10 to the northeast corner of said lot 10, thence northwesterly along the north line of said lot a distance of 265 feet; thence south 239 feet to the northerly line of Summit Avenue; thence east 131 1/2 feet to the place of beglrn ng all in Murry Hill Have caused the same to be surveyed and platted as SUMMIT WOODS, and do hereby dedicate to the publio for public use to the easements for drainage and utility purposes as shown on the plot. In witness whereof said Homestead Partners, L.L.C., Minnesota limited liability company, has caused these presents to be signed by its proper officers this —day of , 2014. SIGNED: its and Its_ STATE OF MINNESOTA COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this _ day of 2014, by its and its of Homestead Partners, L.L.C., a Minnesota limited liability company, on behalf of the. company. Notary Printed Name Notary Public County, Minnesota My Commission expires David E. Crook do hereby certify that this plot was prepared by me or under my direct supervision; that I am a duly I ensed land surveyor n the State of Minnesota: that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on this plot: that all menu marts dep cted oa the plot have been, or will be correctly set within one year; that all water boundaries and et lands, as defined in Minnesota Statutes, Section 505,01, Sued. 3, as of the date of this certificate are shown and labeled on this plat; and all public ways are shown and labeled on this plat. Dated this —day of , 2014 STATE OF MINNESOTA COUNTY OF HENNEPIN This Instrument was acknowledged before me this David E. Crook, Land Surveyor. Notary Printed Name David E. Crook Licensed Land Surveyor Minnesota Licensed No. 22414 day of , 2014, by Notary Public Hennepin County, Minnesota My Commission expires SHOREWOOD, MINNESOTA This plat of SUMMIT WOODS. was approved and accepted by the City Council of Shorewood, Minnesota at a regular -"'!'g there f held this— day of , 2014. If applicable the written comments and rec mmend tons of the Commissioner of Transportaton and the County Highway Engineer have been received by the City or the prescribed 30 day period has elapsed w thout receipt of such comments and recommendations, as provided by Minnesota Statutes, Section 505.03, Saba. 2. CITY COUNCIL OF SHOREWOOD, MINNESOTA By: By: Mayor City Manager TAXPAYER SERVICES DEPARTMENT, HENNEPIN COUNTY, MINNESOTA I hereby certify that taxes payable in and prior years have been paid for land described on this plot. Dated this day of ,2014. Mark V. Chapin, Hennepin County Auditor By: ,Deputy 1111 �111 � � "I �111 1 100-111" MIN � 1 01'"", 111, ml� 11 N 30 0 30 60 SCALE IN FEET SURVEY DIVISION, HENNEPIN COUNTY, MINNESOTA Pursuant to MINN STAT. Sec. 3838.565 (1969), this plat has. been approved this day of , 2014. Hennepin County Surveyor By: REGISTRAR OF TITLES, HENNEPIN COUNTY, MINNESOTA I hereby certify that the within plat of Homestead Partners, L.L.C. was filed in this office this day of , 2014, of — o'clock M. Martin McCormick, Registrar of Titles By: ,Deputy Droinage and UtiliiIty Easements are shown thus io Being 10 feet in width adjoining lot lines, unless otherwise indicated, and 10 feet in width adjoining right —of —way lines. �J N' LIJ I � - / A n n / R.T. DOC. N0. Ilk 4C L) S 7238 0, E 4 r- 00 ! ll iN CD J v O CD� �N7 N S 89'15'18 "' E 369.78 — �, C � South line of S.W.1 /4 Section 34, Township 116, Range 23 South 1/4 Corner Section 34, Township 116, Range 23 (Hennepin County Monument) O �I L V � 1> r- — �'r� V Nv 3 Iw S 89`75'18" E 379.56— 7 S 89 °75'18" E 225,.34 DEMARS— GABRIEL LAND SURVEYORS, INC. A A/ IE)C) /I \/ IVIVI \l \y —t l R IO � j ri r� C� J? C; �S 89 °7551 E 164.00 North 1/4 Section 3, Township 116, Range 23 (Carver County Monument) I 1// / o — DENOTES 1/2 —INCH X 14 INCH SET IRON F 71 L _ L _ PIPE MA' • — DENOTE; MONUMt — DENOTES lblt B PROPOSED CONSERVATION EASEMENT An easement for conservation purposes over and across that part of the property described as follows: Lots 7 and 8, and that part of Lot 9 lying Southwesterly of a straight line drawn from the most Easterly corner of said Lot 9 to a point on the Northerly boundary line of said Lot 9 which point is 125 feet easterly from the most Northerly corner of said Lot 9 and that part of Lot 10 commencing at the southeast corner of said Lot 10, thence northeasterly along the line between Lots 9 and 10 to the northeast corner of said lot 10, thence northwesterly along the north line of said lot a distance of 265 feet; thence south 239 feet to the northerly line of Summit Avenue; thence east 131 1/2 feet to the place of beginning, all in Murray Hill. Which lies southerly and westerly of a line described as follows: Commencing at the most northerly corner of said Lot 9; thence South 38 degrees 43 minutes 25 seconds West, assumed bearing, along the northwesterly line of said Lot 9, a distance of 140.00 feet, to the point of beginning; thence South 78 degrees 38 minutes 07 seconds East 103.07 feet; thence South 5 degrees 38 minutes 07 seconds East 325.02 feet, to a point on the southerly line of said Lot 7, distant 176.00 feet westerly of the southeasterly corner of said Lot 7. Exhibit C 12 #8D MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Northern States Power (Xcel Energy) — C.U.P. to Add Accessory Buildings Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Attachments: Planning Director's Memorandum City Engineer's Memorandum Draft Resolution Policy Consideration: Should the City grant a conditional use permit for Xcel Energy to add two accessory storage buildings to its current campus at 5505 County Road 19? Background: Just when we get used to calling it Xcel, their application comes in under Northern States Power! At any rate, they are requesting approval for two storage buildings to be constructed just north of their main building (see attached memoranda for detailed background). The Planning Commission held a public hearing on this matter at its 3 June meeting and recommended approval of the C.U.P., subject to staff's recommendations, one of which is to require a landscape plan for the County Road 19 face of the property. Xcel representatives have submitted a landscape plan which is currently under review by staff and will be reported on at Monday night's meeting. Financial or Budget Considerations: The applicant's application fee covers staff review of the request. Building permit fees will cover the plan review and inspections. Options: Approve the C.U.P.; deny the C.U.P.; or modify the C.U.P. Recommendation / Action Requested: Staff agrees with the Planning Commission and recommends approval of the C.U.P., subject to the recommendations provided to the Commission. Next Steps and Timelines: The applicant intends to begin construction this summer, or after things dry out (2016 ?). Staff suggests that landscaping be completed no later than 1 June of next year. Connection to Vision / Mission: Quality public services Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Memorandum Re: Northern States Power (aka Xcel Energy) C.U.P. 29 May 2014 contain 4264 square feet. Elevations of the proposed buildings are shown on Exhibit D. The larger, southerly building will be 26 feet in height, while the northerly structure will be 21 feet high. The buildings will be constructed using the same materials as the existing accessory structures on the property. The purpose of the two new buildings is to house vehicles and equipment that are currently kept outside in the storage yard. ANALYSIS/RECOMMENDATION A. Section 1201.22 Subd. 4.e. of the Shorewood Zoning Code sets forth four criteria for the type of use being proposed. Following is how the proposed improvements comply with the Code: The Service Center has historically been compatible with nearby residential activities (primarily to the west of County Road 19). With respect to building setbacks, the proposed buildings comply with C -1 standards. For example, the minimum front setback is 30 feet. The proposed buildings are 108 feet and 203 feet back from the front property line. The northerly building is 20.8 feet from the side lot line, where only 15 is required. 2. Outdoor storage of vehicles and equipment is entirely enclosed by a fence. Note, there are separate provisions in Subd. 41 for open and outdoor storage (to be addressed further on in this report). 3. Additional screening and landscaping is provided adjacent to residential uses. This is where the existing facility and the proposed plans are somewhat lacking. Although the existing site plan on Exhibit B shows some sort of vegetation along the west side of the existing parking lot, outside the fence, this appears to be somewhat nonexistent and parking and storage of equipment is quite visible from County Road 19 and from the residential properties to the west. It is strongly recommended that the applicant have a professional landscape plan prepared addressing this item. Proposed landscaping should include trees and shrubbery that provide winter as well as summer interest. 4. The proposed use of the site is consistent with the Shorewood Comprehensive Plan and with the C -1 zoning of the property. B. Section 1201.22 Subd. 41 of the Zoning Code provides for open and outdoor storage as an accessory use in the C -1 District. 1. Outdoor storage does not take up more than 30 percent of the site area and it occupies less area than the first floor of the principal building. In this regard, the proposed buildings actually improve the site by providing indoor space for much of the equipment storage. -2- Memorandum Re: Northern States Power (aka Xcel Energy) C.U.P. 29 May 2014 2. Fencing and screening are addressed in A. 3., above. 3. Screening from the public right -of -way is addressed in A.3. as well. 4. Storage areas are surfaced to control dust. 5. Landscaping is addressed in A.3. 6. Proposed lighting plans are shown in Exhibit F, attached. Two of the existing pole fixtures on the site will be replaced by wall- mounted units on the southerly building. The plans on Exhibit F -2 show downcast fixtures and the photometric plans indicate that the light levels will be well within the Zoning Code standards of .4 foot - candles at the property line. 7. Parking for the site is considered to be adequate and the proposed buildings are not taking up existing parking areas. It is recommended that the conditional use permit for Northern States Power Company be granted subject to the applicant submitting a landscape plan addressing the issues raised herein and subject to the City Engineer's recommendations which are addressed under separate cover. The landscape plan need not hold up the applicant's plans, which are scheduled for review at the 23 June City Council meeting. The landscape plan should be submitted by 23 June, in order that it be available for the Planning Commission's review at its 1 July meeting. If the approved landscaping is not completed before the buildings are ready for occupancy, a letter of credit or cash escrow should be required to guarantee completion within a specified period of time. Cc: Bill Joynes Tim Keane Paul Hornby Larry Brown David Franke Brian Fitzgerald -3- rt X V O CL ♦♦�� L v/ Q. U ..Q Y 2 �U O Z C � C - O �U No a v a u� N O N O V- N r z�o 0 0 0 M 0 -� Exhibit A SITE LOCATION NSP (Xcel Energy) Conditional Use Permit + LEGAL DESCRIPTION: XCEL ENERGY The following legal description is as shown an First American Title Insurance Company \ \ I Commitment File No. NCS- 56330 -MPLS with an commitment date of September 13, 2010. S H O REWOO D \ \ Parcel A: - -y Lot 5, AUDITOR'S SUBDIVISION NUMBER 133, except that part thereof that Iles southerly of the MINNESOTA following described line: Beginning at a point of the east line of said Lot 5, distant 518.85 feet yo° \ nAacEO — -- I south of the northeast corner thereof; thence southwesterly, deflecting 36 degrees 30 minutes, measured from South to West a distance of 144.46 feet; thence wester) deflecting 27de r es 00 F H Ra' D -' w E0.M — — — —J Y 9 g e SERVICE CENTER " cone tie -N88 °07,43 fY L ° o - • r ... „ , I _ — _ minutes, a distance of 34.65 feet, more of less, to the northeaster) line of County Road No. 19 --- 738.66 a+caw,• :?" Y tv v --- s - --,�, s*yva.__ _- � '•• ,/, ;•, �,;;, _ and there terminating. (Abstract) +9" , evcnTu- —q`,1 > �— _ _ -�'i' "..� � �NORiirr STS acxws 9 wcw Fae-e .. r /r; Parcel B: c Ny ° (D�ANGO.- ovNAl.�. r _ NCS- 456330 -MPLS � That part of the North Half of [he Northeast Quarter of Section 33, Township 117 North, Range '�� - -. 4_0_ '46 "cb'� - = a3e= - = —r - -�_ 23 West of the Fifth Principal Mer(dlan, hounded and described as follows; Beginning at the _ e i xxsug _- 9s,zG- �` -.$_�- .. o.+ x. - --_y a 9 9 _z;;%. ___ _ northeast corner of the following described tract: The West 200 fee[, measured at right angles to 0 _ __ —P/ tt�-�. _ _�_-_ _ _ — -� -= = ° _ the west line, of that pare afTmct A, Registered Land Survey Na. 482, lying northerly of a Ilse CONTACT: > i— I I T 1 T }-- xysss "s' _ rc �: - _ _ °6 rawn easterly from a point on the west line of said Tract A, said paint being T 00 feet southerly I , , I , .� 1 of the northwest corner of said Tract A. to a point an the east line of said West 200 feet, distant 19�° I r ! -O�` 's - `_iw `- �;r� 6, + °'a 100 feet southerly of the northeast corner of said west 200 feet; thence northerly along the \ i + ---- _��. �--� -- Judy Knight s norther) extension of the easterly line ofthe above described tract to a point distant 25 Leer 0 -w a i'ib _„/` I x arL,x+ass sarFAn: `' -•) - - �-'{- i--j - + - -•• b --? s °s> =,c -_ v -'`�' °i0. southerly, measured radially, from the center line of the main track of the Chicago and XCeI Energy 5 PPP , COa"Ea oP raper A, _ .� _� =�`=,r 9° Northwestern Transportation Company (formerly the Minneapolis and St. Louis Railway 414 NieDllet Mall Mezzanine C°NR Lf ! 4 r +ji0 54�` -\ .. - :� 'rca ? - • . ' , - _ -__ Lot son ,sue W.-g' / - -'�-� 4 Company), as said main track is now located; thence westerly parallel and 25 feet southerly of P \ _ wW Minnea Dlis, MN 55401 CALL o-f,� A' .,`_LSEE BgR,bTav Nore \ �- �6 said main [rack centerline to the easterl line of Henne Tn Coun HI hwa No. 19; thence -eaz + °`9' +' ) / - 6u°'x.''r =ea. - +''Y Y P h 9 Y ,� d °' e" -� ,* nss ivTV-`� southerly along the easterly line of said County Highway to an iron monument on the easterl Phone: 612.330.2997 g Y 1. 4 \ ZON O.• - -� caaNEa WEST I rRacr a, RLS raD. line of said County Highway, distant 50 feet southerly, measure at right angles, from the center Fax: 612.330.7856 + �� f - \, + _� � NK4 SAY i-- F�LO°R Eiw: ' line of said main track; thence Easter) along the souther) right ofwa fine of the said Chicago ° ` 1 ( sew x Lmur : y 1 '•" 97a A EXfsYpdc„ ,•,••,,, _ v 9 Y Y 9 Judy.l.knight@xcelenergy.com ��•'_44) - -. -- _ - t _ EA9EYENr PER , 4N \'v r/ " " "'rr,,, _ �e s sr-DWC / cl II and North Western Transportation Company to aJudicial Land Monument located at the q46 5 -I DOG. NO. 783858 O \�`5,�.. N°4+1 ,�` - northwesterly comer of Tract A, Registered Land Survey No 482; thence easterly along the � ' / / 9 ri60ri,,.,iiii,iiiirriiii �1 F{ �.. —` LL ' , ° „ "'� i `�1J�9 northerly line of said Tract A to the point of beginning. (Abstract). COUNTY: '4 WnRFI0,X 91FFaCF + f -\ �` -`096 /r -\ \_,. - $ �\ PAR(�EL C ' Parcel C; 'J o° + •cH°N reke, o , y �1.'�.1n, +o p9 ,t I'i 6p �*aqe q.^° The West 200 feet, measured at right angles to the West line, of that part of Tract A, Registered H E N N E P I IV ,yo' c', y�. -w4, Ex ca g " Land Survey No. 482, County of Hennepin, lying Northerly of a line drawn Easterly from a point C O U N TY \ 9 _ 9` °° + on the West line of said Tract A, said point being 700 feet Southerly of the Northwest comer of \ +' * 9• - -�9 }"' +- -_ -- , j __ ,a - 7.� + RPt 9499 °A1'��Rxb �+� said Tract A, to a point on the East line of said West 200 feet, distant 100 feet Souther) of the 9 - -.� — +? NY -939.0 ➢a pa Y - r �.� q.,, \� (PLANT ?D 9 ' #', , Fes, 9 s� Northeast corner of said West 200 feet (Forrens) Re 6 t ,� \ 6 N Y\ 3• I <r r -Z.� . ,•43I °�'n s. f,- —0 .�-.. eLL.I, s v , �..._ �- 1 c 4999, EASEMENT NOTES: °9 --- +q °g```� -/ �- First American T[Ie Insurance Company Commitment File No- NCS- 455330 -MPLS with an f y v \ I y - �wa �s + a 45y 2.53 l commitment date of September 13,2010 was relied on for matters of record. � \ 91E ,o , 1 4y , a _ .s + °•_ g 3 . t ' +9`9' + _ qP_ _ ++ ZONED.- C d i �,. g9° , 1 , ' +° °l, + 13. Sub J e ct to Easements for sewer and utility purposes per Doc. No. 783858. Shown graphically. '0 a9Z SHOREWOO - \ Mr. Pete Owens of the Metropolitan Council Environmental Services (3565 Kennebec Drive, REVISIONS: < t I Eagan, MN 55122, Phone: 651.602.4535, Fax: 651.602.4533, E: $ ,C r ' Z• \ s \ `ye ,. \ t o ,6' I _ °y ' - -- � Osr -1 <w3 - pete.owens@me[cstate . mn.us) responded to our Gopher One locate call with the following DATE REVISION A a °'' email message: 03 -07 -14 INITIAL ISSUE ....951... � 5 h ?' � non �'E ~� I a predecessor agency of the Met Council took ownership and operations of a lift station, + _ s5 `�' -�, sLaF FLL000z°ELe Iz i FM, and gravity sewer built in 1964 by the city of Tonka Bay In your area of Interest. The lift F\ \ $y. - \J vosselt \ ' `; LT- -- , \.'� station and FM were abandoned In 1971 when a new system was built, sewage is now VICINITY MAP: \ '[< + I' D *� ( ea Kww _:oe ✓ conveyed along our 7017 pipe along the Henn Cc reg. rr property.An easement covering your area of Interest Is attached. Since we no longer use the pipe the easement should no longer be \ ,a - - -- 20o' - -� necessary. If you need a release of the portion of the easement across the Xcel roe let me 517E Ie"PW COUNTY REGIONAL RR \ :�� 6 o5ci ' % 4,94 -ALE 9° �Tt -^^ L ON property rtY e cow 9i� h x \\ Sgt ''` know.' \'• �\ ' 649` CALL (+ \ ' + FLOOR \ �\ ,q„fB +s'y0a'p „ • pvc - - Lz I- +9y ;• 14. Easement Agreement per Doc. No, 3577174 does not affect the subject property. TOWA BAY o \9 ,3`.b m + ..a. .CN.W tettNxt 6 =iD d'' ! fi 3 t SCALE: sNOaew000 ®z \ :,'F �, N�,o m a / 15'ys? 9+` , Ex. rW , FEZ +�y y, ; , 15. Easement Agreement, retarded as Doc. No. 3991089 does not affect the subject property. fig,, Shown graphically. \\\ `• � ; + ,,; 31�° ° % ¢P° TaAirc� r• BL� FLOG ELEV1 ' 1 1 G. Subject to Terms and conditions of the Deed recorded as Doc No. 4107959. Not shown - sfrTNTawH ROAD '` �' - `20a I' ' o r x affects all of Parcel B. CRY OF SNOREWOOD \ �� Cy `- -FLOOR ELEV. y _ HENNEPIN COUW ,, \•'\ \ ALU4L 4'9'm c =959.4 $ \ ° 9 ,<xf + I, V t @t q , 17. Subject to Right of way for County Road 19 as presently laid out and traveled, and as contained MINNESOTA r. +99`' 4P ? 1' In Hennepin County Stale Aid Highway No. 19, Plat 57 -Doc No. 5036475. Shown ra hlcall 2zo o'ae 9 ( -'- 9 P y. NORTH SEC 33, TWA. 117N, RAG. 23W ° ,e - 1 -5i s " 3 XISTWG BUILDING �� u32 sosr. As se°WN , -� 18. Subject to Railroad right afway, as shown on Hennepin County Regional Railroad Authority 0 40 80 A< ° T 1 F y c . 1 Property Map No, 1, per Doc. No, 5404251. Shown graphically. ns , q ( I� ,4 a w 19. Subject to Declaration per Doc. No. 9318998 and 4614525. Not shown - covers entire property \ Q\ q V1i ° area. P. L , �Nm CERTIFICATION: CALL BEFORE YOU DIG[ _.let ,,, I � � r' r PROJECT LOCATION: LE` u ' l-a"RgRgy,,, -; ' y,° - 15 "I 1 q I 1\ , ;S v"� 1 hereby certify to XCEL ENERGY, and Old Republic National Title Insurance Company and to $ Go) her State One Call G� / �': -p ��'q F '• p - " i o +° ' art 21U i their participants, helm, successors and assigns, that this map or plat and the survey on which It TsrE!2 i j 5 5 0 5 °\y is based were made in accordance with'Mlnlmum Standard Detail Requirements for ALTA /ACSM V TWIN CITY AREA: 651-454 -8002 Land Title Surve s i - \ \y i + ! 9 ? I9 tF y 1 , r • ` -' , Y Jointly established and adapted of ALTA, and o the In Accuracy and Includes TOLL FREE: 1 -880- 252 -7166 - 2� ' °� s + mue+ar,'suu "� 9�I, _ , r Items d y 3, 4, a 10, 11 b, and 14 a Table A thereof. Pursuant c the , the u cd undersigned as MAN ITO U ROAD ,9, 4+ wares hr K s i' I I adopted by ALTA and NSPS and In effect on the date of this certfFlcation, the undersigned p , d SERE A5, ° / k{ ya further certifies that in my professional opinion, as a Land Surveyor registered in the State of 4LL:a , -,1 'AN, ;M �npAIROS , t,9 0 Minnesota that the Relative Positional Accuracy of this survey does not exceed that which is UNDERGROUND UTILITY NOTES specl8edtherein. Q CORNERSTONE LAND SURVEYING, INC. t.LD. #3311723120080 Dated: 11 -12 -2010, Revised: 03 -07 -14 (topography) P.LD. #3311723110045 THE UNDERGROUND UTILTIES SHOWN HAVE BEEN LOCATED Np _ 9 °? Iu I - - 1 se . FROM FIELD SURVEY INFORMATION AND EXISTING DRAWINGS. U ,c +° THE SURVEYOR MAKES NO GUARANTEE THAT THE UNDERGROUND UTILITIES SHOWN COMPROMISE ALL SUCH UTILITIES IN THE AREA, - _o� - -\ I I. v I o ^ ' ' EITHER IN SERVICE OR ABANDONED. THE SURVEYOR FURTHER a R 9 ? yyo Eocf sdow Pat f y ,° \qsy fi y aniel L. Thurmes $ DOES NOT WARRANT THAT THE UNDERGROUND UTILITIES SHOWN °dr Minnesota License No. 25718 ARE IN THE EXACT LOCATION INDICATED ALTHOUGH HE DOES \ 9 R' m t. - First American Title Insurance Company Commitment File No. NCS-45 633 0-MPLS with an CERTIFY THAT THEY ARE LOCATED AS ACCURATELY AS POSSIBLE \ i y_ / Suite #B1o0 FROM THE INFORMATION AVAILABLE. MOST UTILITIES ARE mi , 9 9;:" -� 1 . ` — — — — — — — — — — commitment date of September 13 was relied on for matters of record. Other easements may 200E st Chestnut Street yh". :�... " :. "',4 a*zb � � ; ;:.:*y` �, _ � � / /// — � exist that were not shown in this commitment and are not shown on this survey. Stillwater, MN 35082 SHOWN BASED ON MARKING LEFT 51 THE GROUND IN RESPONSE \ y ry _ NO DIGGERS HOTLINE OCATED T E UNDERGROUND THIS SURVEY HAS `� - \ °s+% r +�$, / // Phone 651276.8989 NOT PHYSI L UTILITIES LOCATED OF WHICH IN ERGROUND UTILRI6. \ \ SE ' D STS S\ .169�_J° 'T6J0 "Lr-- / /// I BOUNDARY NOTE: Fax 63,.273.89796 ADDITIONAL UTILITIES OF WHICH WE ARE UNAWARE MAY EXIST. \ 5�1a9 O•�6 , ` I .3�� / 'yv° I dan@casurvey 'y%'g j /// L — — — T14EWESMLYUNEOF ILLS NO.482 IS DELINEATED BYJUDICIAL LANDMARKS SET AT THE NW net 5kU69',0/ / CORNER OF TRACT A AND ALONG THE WEST LINE OF SAID TRACT A. THESE MONUMENTS NO 9 / / LONGER EXIST AND SHOULD BE PLACED PURSUANT TO A COURT ORDER. DISTANCES AS LEGEND: ah ^ U �c°o X99 / / SHOWN ON AUDITOR'S SUBDIVISION NO. 133 PLACE THE WESTERLY LINE OF ILLS NO 482 ,I"/ N. dP /}' APPROXIMATELY 19 FEET EASTERLY THAN AS SHOWN. THE EAST LINE OF LOT 5, AUDITOR'S J ,(� SUBDIVISION NO. 133 AND THE WEST LINE OF TRACT A, RLS NO. 482 AS SHOWN ON THIS O \ P ¢ e / /T' /� SURVEY ARE THE SAME AS THE WEST LINE OF GOVERNMENT LOT I, SECTION 33, T17, R23. 0 TEIE /ELEC BOX y,,i •- `+'J �- DENOTESIRONMONUMENTSLT ° \ / CAS VALVE METER e ° / �1 ! EXISTING PARKING CORNERSTONE OFIJOTFS FOUND a a GAS VALVE / \ °i ' 959 ' yy 4 v / �/ / MONUMENT AS MARKED ---- .._'.R..- ..._ELECTRIC UNE \ _ $+ / i/ / $ AREA: i- l TOTAL REGULARSTRIPPED PARKINGSTALL 5 =55 L.AN� SURVEYING, INC WELL -TELEPHONE LINE \ P5,9 �I'' b9 g4•N jj �,"� TOTAL HANDICAP STRIPPED PARKING STALLS =1 } TOTAL AREA OF PARCEL AS SHOWN: ° y P 0 , S TOTAL NON STANDARD STRIPPED PARKING STALLS = 19 AREA = 245,173 SO FT, / 5.63 ACRES tYA WATER VALVES -. —FIBER OPTIC LINE � 9 e �' 4 �,yy __. .. K HYDRANT - �WATER LINE \ o It ' ^ ', as CATCH BASIN /STORM MH —STORM SEWER LINE' < -- SANARYSEYERNE p CULVERTIF.E.S. \ FLOOD INFORMATION SURVEY NOTES: 0 SANITARY MANHOLE —• -- -FENCE B CLEAN OUT COBS _ ° BY GRAPHIC PLOTTING ONLY, THIS PROPERTY FALLS WITHIN ZONE X PER FIRM FIELDWORK PERFORMED MARCH 2014, OCTOBER 5TH, 2010, JULY CONCRETE FOUND 1 T Exhibit B >- SIGN D Foua3 MAP - COMMUNITY PANEL NUMBER Z7053C0374E WITH AN EFFECTIVE DATE 2008 AND AUGUST 09, 2007. P„m\ OF SEPTEMBER 2ND, 2004. n LIGHT LANDSCAPED AREA oat ,P \ q60 BEARING ARE BASED ON HENNEPIN COUNTY COORDINATES AS 4 HAND HOLE ' � a ,p9 � p SHOWN ON THE HENNEPIN COUNTY SURVEYORS OFFICE WEBSITE. PROPERTY SURVEY J , ' B c 0 E I 2 1 B 1 4 1 5 6 XcelEneW — - -- - _ 7�jmq /1,l/ _ _ 1. CUYIWLTOit9All LCMAOf (YPIRRSIAIEdEATTfP m TO TOLLFi+EE�1bN]St11Pil.M _,., \ z ICO: 9WLCOgiOINATENLIH OnlB/ro IOGTE PBIJATEVIe11E4 PROPOSED BUILDING _ _ e rs+ rrRACrorsslwr_E>aIrmmwassrrcsPwozro 10SEENOIE 1040 � -: E "�T - —_ - -- -_ -� Hi1HENGt3:E4 PRpRTO�OFaECQYrtiiLTgt� N l TEIaONA4nYSIM14miNLF%HMG E]P0 ®PJE, WJLVG OU4T61h1�OmPR(Ei0ATm0.55l4fS \\ \\ \ � \\ i r _.?T � S �tMM0111�ONf1 PAYlEl(�x419E WOEPoROftrATFRt40 \ , �\ � ' � 0 � � n W0192NTEx11HOM.9t FCRAYf UrflltYtYIWdF110N9, �\ \ \ J -. _��•(. P3tALL h£H 0(YIfPFIE99f2 ' PROfAE1G49NRHOmnO110E PoRHIPU4*ID _ C � � SEi` W(085PY1WAY.sEE 01LTft'EOZ � � � 1 ..� � T. CIWIR1CIgt9WlfURI '91AW PSIHLNLTEMCPAR/ -v+�, t5E_ra� / I � � - � � _ � 1PARiCCONIROLAW9 +111SRNfATMFACWNIROLPUN res¢anrxvr�nramcmla�ww roonAmtwtAtPnwunamroeccn . alcxawcwz \ \ \\ \ �� \ \ FB,fEl93(31TdiYPE PtSfALL I&NJS SECIIONOFIXMifAflE 4 I. 1 � ,�micm�vc�.ipc �rxwevre corsaxv To r� uTesr Enmav uv dArtco. \V � eslzaxe oP , I i rrxrauermueFwnmam .cesuao srnwsswu ,z�s.»®., s- XM PROPEAII'NE n Am�avcETnArnmlcEA� ,owsmnoru�svAmw.u� �j� \ / 5--'* \ I{ �> 0.09J HEmm -196 FLOIigm. M:F.tSTO PARaVOL0i9° � II I — \ \� \QS�\_ 4 ,�''- --� - Panmluu¢oEnannac III n �WEZmAA U.vPsa Exi v VA T • � �% _ `� �..- � -= -T _�F � - xnxaaEwemaw.moa n -. , �� catatwx:noxlmrs� B . a � v� / � -- � to maosmemnworosE51vroR1EUmmales PFY$As 9••� \ \ •' T �, Y -� row�rnsPm9snavPA — PasrOrvoPq I � PATm 810➢QAUS t4COte0Y \ - \\ \\ / -'' -� y „, �.. .J I � -_�J R0. AAEYF9rtbFLTlm �A - PROPOSED BUILDING / # 72'X72' PATO191NYrt10U9TR41. \ 4. III I ✓ B.iPiBl•+f U I - Y� U #BPROPFRII'ldE \ i \ J .� mo crmsmlo rtarvoPw mom LLI LLJ � � W Z r, R' O LLl � r - O O O ` \- r LL LL ;.. \. \` U OwO LIJ fn fn � ' r �% \� VI ( , ALLOwEC110HS ISSEI6AGC (�, UA i I9 JTAPmcu6312 te'xd1EIW9g1 qe✓a WIL X� 1 \�\ 11945181 MUEDFOR s_ \ CITI'C.U.P. SCALE: 0 15 30 60 120 i Exhibit C PROPOSED SIT E PLAN B c 0 E 8 4 5 8 5 NORTH ELEVATION - STORAGE SHELTER A201 1/8"= V-0" wrurr= Q�rs ExrenaF SL YETOLS. ➢:'G nl, FASi, BNERT alS IFE11➢IS`I 6 � SOUTH ELEVATION - STORAGE SHELTER A201 1/8'= V-0" I I I 2 �vEruEASanmv PrPl �� `snn�a ➢mavE ➢AS1E➢OUNA'E PFPPESQlIS EYrQn OF Pommnivsiusu -:,� i alraRrti, PAST, attESr § _ ry aPVanauffewa:r Austs I \�- OPENTMS `�- OPQIIM'S RQIl0 L0'C. PrcA P£YIN EI VAIIQI� EIEVAMN� ii SFESIW1Gf. PIX R➢ 6 ------------------------ _ L � sFE SIRUCf. � � —aYiC PAtj1YP I, i i sff st0.UCi - v � �� y Fi 9Vi6 r r 1 WEST ELEVATION - STORAGE SHELTER ELEVATION - STORAGE SHELTER A201 1/8"= l'-O' (EAST ELEVATION OPP., SIM.) r I 1 NORTH ELEVATION - VSB A201 1 /8" =1' -0" 2 SOUTH ELEVATION - VSB A201 1/8' I 3 l EAST ELEVATION - VSB I I I I WEST ELEVATION - VSB _9 n� �xvTMag %PAY ff SP.4E A15 I . XcelEnergy- ua..R, for TImA 1 ry W Z W cn U z I— . O Ill o 0 0 01= U WL0 m Lu ;' c �0 Cf) L1J o zp O ODU p r- on�[)� co O wWOO LL O U O�O _ =�z W > cC/) r 0 1c 11s451e1 ISSUED FOR CITY C.UP. 05.052014 E Exhibit D BUILDING ELEVA .TIONS B c 0 E I I I -- - 3 1 4 1 5 I I I 1 1 fi XGWEMW "WA . . ... . ....... N ry uj :z LU u) z C) LU (M oop W a Q Z:) > C13 =) � c w (Lun VU) LU C) z 0 U) ouc) C) �- U) 0 0� 0 0 Lu W o -1 Wm�- w 0 LU W (n LU > co [If 0 r co f0 ISSUED FOR CITY G.U.P. 05.05.2014 SCALE 0 15 Exhibit E PROPOSED TRAFFIC CIRCUI ATION C 0 E N FIXTURE(S) TO BE REMOVED I w _ W1 4 n 1G TD � NEW w VEHICLE w -_i STORAGE - BUILDING 11 W W1 EXISTING SITE LIGHTING POLE - - AND FIXTURE(S) TO BE REMOVED 5 l EXISTING SITE LIGHTING POLE — - -- AND FIXTURE(S) TO REMAIN 0 I SJE LIGHTING RXTURES 8 W - LARGE EXTERIOR WALL BRACKET LED WITH FORWARD THROW, CUT -OFF TYPE DISTRIBUTION. LITHONIA CXSI- 60C- 1000- 40K -TFTM SERIES, OR EQUAL. WI - SMALL EXTERIOR WALL BRACKET LED CUT -OFF TYPE DISTRIBUTION. LITHONIA WSO- LED -700 SERIES, OR EQUAL. GENERAL NOTES A- ALL DUPLEX RECEPTACLES 'HALL HAVE GFCI PROTECTION AND 15P HD N —USE COVERS. B. UNLESS HOTEO OTHER',tiEE, ALL BFAHCH CIRCUITING SHILL OR IG11!ATE FR0LI PANEL L5. C. UNLESS NOTED OTHER1,15E ALL DEVICES SHALL BE !IOUNTED AT 43' AFF TO BOTTOLI OF BOX. 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XcelEneW �JSe�a o_1� TK" I..1_ Lu Z LIJ co U CD L0 z °0 W o 0 U3 CD U � W C_ j Ib z::D O� LLJ (D co Lu O UO O O cf) X 0 0 O w ED I U_ _ 000 Lu > to 1 /lO VJ D 11945181�I ISSUED FOR CITY C.UP. 05.052014 E SITE PHOTOMETRIC PLAN E002 F -2 CITY OF C24 •' 111 5755 Country Club Road, Shorewood, Minnesota 55331 Tel (952) 960 -7900 TO: Brad Nielsen, Planning Director FROM: Paul Hornby, City Engineer DATE: May 29, 2014 RE: Xcel Energy Shorewood Service Center Proposed Site Improvements — 5505 Manitou Road The project improvements consist of the addition of two buildings and a concrete storage pad. Sanitary sewer and water sei vices are proposed for connection to one of the buildings. Plans have been prepared by TKDA issued for C.U.P. application and dated May 5, 2014. The following items pertain to the site improvement plan review from an engineering standpoint: 1. The proposed sanitary sewer and water improvements impact the new City sidewalk extended along CSAH 19 last year. The proposed sanitary sewer service and water service are proposed for open - cut /trench construction and restoration of the trail matching the original construction. The sidewalk will need to be closed and posted as such meeting the MMUTCD. A one week advanced notice of the time period of the sidewalk closing needs to be posted to alert pedestrians. 2. The proposed water service connects to the Tonka Bay watermain in the east boulevard /shoulder of CSAH 19. The water service connection will need to be made to the City of Shorewood watermain located at Glen Road and CSAH 19. Directional drilling or boring of the service across CSAH 19 is suggested. 3. The sanitary sewer service connection is to be with a service sleeve, strap -on wye with gasket, and the mainline pipe is to be core - drilled for the connection. The connection is required to be watertight. The cored pipe material is to be retrieved from the pipe during connection so it does not float downstream and affect a downstream pumping station. 4. A permit from Hennepin County Public Works will be needed for work within County right of way. 5. The silt fence on the erosion control plan proposed along CSAH 19 needs to be shown along the back of sidewalk instead of back of curb to reduce conflict with pedestrians while the sidewalk is open. A second section of silt fence will be needed at the curb line at the utility trenches. 6. The erosion control plan shows two locations for CB inlet protection and the estimated quantity states four locations. There are two culverts crossing under the City sidewalk near the LRT Trail that should also have inlet protection. 7. The applicant should be aware that construction of the Three Rivers Park District LRT Trail overpass of CSAH 19 may be under construction and coordination with their contractor may be required for work within CSAH 19, the City sidewalk, and for erosion control. Additional comments may be made on subsequent plan submittals. Please contact me if you have questions or need any additional information. CITY OF SHOREWOOD RESOLUTION NO. A RESOLUTION GRANTING A CONDITIONAL USE PERMIT FOR XCEL ENERGY TO ADD TWO ACCESSORY STRUCTURES WHEREAS, Northern States Power Company, DBA Xcel Energy, (Applicant) is the owner of real property located at 5505 County Road 19 in the City of Shorewood, County of Hennepin, State of Minnesota, legally described on Exhibit A, attached; and WHEREAS, the Applicant proposes to add two accessory strictures within its existing storage facility; and WHEREAS, "governmental and public regulated utility buildings and strictures" are allowed by conditional use permit in the C -1, General Commercial zoning district and the Applicant has applied for a conditional use permit to build the two buildings; and WHEREAS, Applicant's request was reviewed by the City Planner, and his recommendations were duly set forth in a memorandum to the Planning Commission dated 29 May 2014, which memorandum is on file at City Hall; and WHEREAS, Applicant's request was reviewed by the City Engineer, and his recommendations were duly set forth in a memorandum to the City dated 29 May 2014, which memorandum is on file at City Hall; and WHEREAS, after required notice, a public hearing was held and the application was reviewed by the Planning Commission at its regular meeting on 3 June 2014, the minutes of which meeting are on file at City Hall; and WHEREAS, Applicant's request for a conditional use permit was considered by the City Council at its regular meeting on 23 June 2014, at which time the Planner's memorandum, the City Engineer's memorandum and the minutes of the Planning Commission were reviewed and comments were heard by the Council from the City staff NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: FINDINGS OF FACT The Subject Property is located in a C -1, General Commercial zoning district. 2. The Subject property contains approximately 5.63 acres of land, 5.04 acres of which are located in the City of Shorewood. The remaining acreage is located in Tonka Bay. 3. The Applicant's plans propose to add two new accessory storage buildings to the north of the existing main building. 4. The northerly of the two strictures will contain 4264 square feet of area and the southerly of the two strictures will contain 5184 square feet. CONCLUSIONS A. Based upon the foregoing, the City Council hereby grants the Applicant's request for a conditional use permit for the constriction of two accessory storage buildings subject to the following: Site work shall comply with the recommendations of the City Engineer. 2. The Applicant shall landscape the street side of the facility in accordance with a landscape plan reviewed and approved by the Planning Director. B. That the City Clerk is hereby authorized and directed to provide a certified copy of this Resolution for filing with the Hennepin County Recorder or Registrar of Titles. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June 2014. ATTEST: Jean Panchyshyn, City Clerk -2- Scott Zerby, Mayor Legal Description Insert Legal Desc -3- Exhibit A #9B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Galpin Lake Road Sidewalk Improvement Project, City Project 13 -06 Meeting Date: June 23, 2014 Prepared by: Paul Hornby Reviewed by: Brad Nielsen Attachments: Resolution Approving Plans and Specifications and Authorizing Advertisement For Bids Background: The City Council authorized preparation of plans and specifications for the Galpin Lake Road Sidewalk Improvement Project, City Project 13 -06 on February 10, 2014. The proposed sidewalk improvements include a 6 -foot wide bituminous pathway extending on Galpin Lake Road from the City border with Chanhassen to the TH 7 Lake, and along TH 7 from Galpin Lake Road to CSAH 19. The plans also include the extension of an 8 -foot wide bituminous trail along Galpin Boulevard from the City border to Pheasant Drive. WSB is nearly complete with the plans and specifications, which have been submitted to MnDOT for review and funding approval, and staff requests authorization to advertise for bids to maintain the project schedule. The advertisement will be placed in the City Official Publication, Finance and Commerce and on QuestCDN.com . The date of placement of the Advertisement for Bids in the publications will be dependent upon agency review and permitting. Staff requests authorization to effective time the advertisement. The project plans will also be submitted for review and permitting to City staff, City of Chanhassen, Carver County (Galpin Boulevard is CR 117), and MCWD. Financial or Budget Considerations: The Feasibility Report opinion of probable project cost was $855,500. Plans have been prepared to State Aid requirements in order to request partial MSAS funding for the project. The project is proposed to be funded from the trail fund, street fund, and storm water fund, supplemented by MSAS funds. Recommendation / Action Requested: Staff recommends Council approves plans and specifications and authorizes advertisement for bids. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENTS FOR BIDS FOR GALPIN LAKE ROAD SIDEWALK IMPROVEMENT PROJECT CITY PROJECT 13 -06 WHEREAS, the City of Shorewood authorized preparation of plans and specifications for the Galpin Lake Road Sidewalk Improvement Project, City Project 13 -06, on February 10, 2014; and WHEREAS, the City Engineer has prepared Plans and Specifications for the Galpin Lake Road Sidewalk Improvement Project, City Project 13 -06. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: The Plans and Specifications were prepared by the City Engineer for such improvement. Said Plans and Specifications are hereby approved and shall be filed with the City Clerk. 2. The City Clerk shall prepare and cause to be inserted in the official paper and according to MN State Law an advertisement for bids, upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for 3 weeks, shall specify the work to be done, shall state that bids will be opened and considered by the city at the specified time and date, in the City Hall Council Chambers, and that no bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the Clerk for 5 percent of the amount of each bid. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014. ATTEST: Jean Panchyshyn, City Clerk Scott Zerby, Mayor k,\ ;\ City of Shorewood Council Meeting Item Title / Subject: Establishing Temporary Road Restrictions — Enchanted Lane Meeting Date: June 23, 2014 This item will be delivered under separate cover. ,L MEETING TYPE Regular Meeting Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 #9C MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Sunnyvale Lane Improvement Project, City Project 14 -01 Meeting Date: June 23, 2014 Prepared by: Paul Nornby Reviewed by: Attachments: Resolution, Approve Plans and Specifications, Authorize Advertisement for Bids Background: The City Council authorized preparation of plans and specifications for the Sunnyvale Lane Improvement Project, City Project 14 -01 on May 12, 2014. The proposed improvements include sanitary sewer inflow and infiltration improvements to manholes, street reconstruction, storm sewer and restoration. The watermain extension that was in the feasibility report was eliminated from the project by the City Council, with input of neighborhood residents. WSB is nearly complete with the plans, the final project specifications and opinion of probable construction cost will be available at a future meeting date. Plans will be sent to the MCWD for erosion control permitting and City staff for review and comment. The advertisement will be placed in the City Official Publication, Finance and Commerce and on QuestCDN.com. Financial or Budget Considerations: The Feasibility Report opinion of probable project cost is $481,830 without the watermain extension. The project is proposed to be funded from the Street Reconstruction Fund, Storm Water Fund, and Sanitary Sewer Fund. Assessments will not be part of the project funding with the elimination of the watermain extension. Recommendation / Action Requested: Staff recommends Council adopt the resolution approving plans and specifications and authorizing advertisement for bids for the Sunnyvale Lane Improvement Project, City Project 14 -01. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENTS FOR BIDS FOR 2014 SUNNYVALE LANE IMPROVEMENT PROJECT CITY PROJECT 14 -01 WHEREAS, the City of Shorewood authorized preparation of plans and specifications for the Sunnyvale Lane Improvement Project, City Project 14 -01, on May 12, 2014; and WHEREAS, the City Council has directed the engineer to eliminate the watermain extension from the plans; and WHEREAS, the City Engineer has prepared Plans and Specifications for the Sunnyvale Lane Improvement Project, City Project 14 -01. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: The Plans and Specifications were prepared by the City Engineer for such improvement. Said Plans and Specifications are hereby approved and shall be filed with the City Cleric. 2. The City Cleric shall prepare and cause to be inserted in the official paper and according to MN State Law an advertisement for bids, upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for 3 weeks, shall specify the work to be done, shall state that bids will be opened and considered by the city at the specified time and date, in the City Hall Council Chambers, and that no bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the Clerk for 5 percent of the amount of each bid. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 21 day of June, 2014. ATTEST: Jean Panchyshyn, City Clerk Scott Zerby, Mayor #10A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Credit Card Processing for Utility Bills Meeting Date: 6/23/14 Prepared by: Bruce DeJong, Finance Director Reviewed by: Bill Joynes, City Administrator Attachments: Resolution Att. #1 - Survey Results Att. #2 - Payment Processing Flow Chart Att. #3 - Visa Bill Pay for Utility Companies Att. #4 - ACH Originator Agreement Att. #5 - Bluefin Program Terms and Conditions Policy Consideration: Should the City allow utility customers to pay by credit card? Background: The City Council has purchased the online access to utility billing through Springbrook Software. That program also allows utility customers to set up recurring payments either through ACH debit from the customer's bank account or through a charge against their credit card. In order to allow those options to happen, staff needs authority to enter into a processing agreement with Springbrook and their third party processors Innuity, Inc. dba as Merchant Partners, and Bluefin Payment Systems. There are several options that can be used in implementing this process. We can only allow ACH transactions (like we currently do), we can allow credit card payments without a convenience fee, we can allow credit card payments with a convenience fee, and we can register as a utility company to allow for a lower processing fee, but only with the restriction of no convenience fees. Staff surveyed other Minnesota communities to determine what method they use for credit cards. The results varied widely, but the vast majority of communities that do accept credit cards allow them to be used for all types of city payments and do not charge a convenience fee for using a card. Our typical bill is around $100 per quarter. With that understanding, Springbrook drew up an example to show how the fees would work under the Visa Utility rate versus a retail rate. Visa Utility rate base on $100.00 payment. I will use this example for customer credit and debit transaction vs. small business transaction ($0.75 for customer / $1.50 small business) Interchange Fee: $0.75 per transaction for the interchange fee • Credit Card Processing & Gateway fee —These are on every transaction ($0.30 + (0.0045% x $100.00)) = $0.75 • Springbrook fee $1.00 per transaction Total Fees to the City $2.50 — No convenience fee option Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Retail Rate (you can charge a convenience fee). To make this easy, let's assume that your customer will be using a card that will be at the higher rate of 2.10% on $100.00 payment • Interchange Fee: Between 1.4% - 2.10% + $0.10 = $2.20 • Credit Card Processing & Gateway fee —These are on every transaction ($0.30 + (0.0045% x $100.00)) _ $0.75 • Springbrook fee $1.00 per transaction Total Fees to the City $3.95 — City can charge a convenience fee to customer - either a % or flat $ amount. Monthly Fees: • PCI Compliance $11.95 compliance fee • Monthly Statement $9.95 • Monthly Fee $200.00 month (billed 3 months from contract execution) Mastercard has a similar merchant program for utilities that we would also participate in. The processor also allows payment with Discover and American Express accounts. Based on the survey results, processing cost savings using the utility merchant account, and the survey results from other cities, staff recommends that we enter into the credit card program using utility processing rates with no convenience fee. This seems likely to create the most customers using automatic payment methods. Financial or Budget Considerations: Adoption of this resolution will allow Shorewood to enter into the agreements necessary to allow credit card use by Shorewood utility customers. Options: The City Council may choose to: Decline to participate in the program; Adopt the attached resolution to participate. Decide to use standard retail credit card processing with a convenience fee. Recommendation/ Action Requested: Staff recommends the City Council adopt the resolution as submitted. Next Steps and Timelines: Staff will enter into the agreements necessary to participate in the program as designed by Springbrook. Connection to Vision / Mission: This program contributes to sound financial management. Credit Card Convenience Fees Survey Results Anoka Yes Online or phone only $3.95 up to $500 - In- person = no fee Apple Valley No All Services Arden Hills No Barnesville No Blaine Yes Only on charges >$2,000 4% Brooklyn Center Yes $3.50 for bldg permits Brooklyn Park No All Services Burnsville No Elko New Market No Fergus Falls No Hopkins No All Services Inver Grove Heights No Maple Grove No UB, Bldg, Comm Ctr, Farmers Market Minnetonka No Moorhead No New Brighton No Pelican Rapids No All Services Pine City No Plymouth No Robbinsdale No All Services Rochester No All Services Rosemount No Shakopee No Bldg Permits, Rec Programs St Peter Yes Util Bills only Stillwater No Three Rivers Parks No All Services v,ylll MYB11 1h. Onllnll 11 Payment Process Flow Online- bills.com Card Holder info. Customer portal Make Payment View Usage L i � m o o 0 Q) E o ¢ � o_ Processing Gateway - The information is encrypted and sent to bank and credit cards company for authorization. Funds Deposited if approved Encrypted Card Info $0.60 Gateway Fee .90% Basis points Variable interchange rates $0.75 Visa Bill Pay For Utility Companies r u Visa Utility Interchange Reimbursement Fee Program • Over 2,120 utility companies are enrolled in the program' • Regardless of your customer's bill amount, the Visa Utility Program includes: - $0.75 rate for qualified consumer credit and debit transactions - $1.50 rate for qualified small business credit and debit transactions • Eligibility: waste, water, gas, and electric utilities VISA Partner with Visa to Reach Your Business Goals and Help the Environment t Many utility companies that accept Visa® cards for bill payments have benefited from increased profitability, lower costs and increased customer satisfaction by offering their customers more payment options. It's also a great way to help the environment by using less paper. Increase Customer Satisfaction • Customers want more payment options than ever, especially with electricity prices up 17% in 2007.' In fact, card acceptance for utility payments has nearly doubled over the last seven years from 41% to 81 %? • Customer satisfaction has become a key performance indicator for most energy delivery organizations and the billing and payment process is a big factor in satisfaction' Cut Costs Plus Get Special Incentives Just for Utility Companies • Save money with discounted interchange fees when you enroll in the Visa Utility Interchange Reimbursement Fee Program. Then pass these savings on to your customers, since there's no need to charge a convenience fee. • Cut payment processing and check - handling costs since online processing reduces the number of customer service calls and related expenses. • Reduce expenses created by delinquent accounts since Visa card payments are guaranteed. • Help the environment by accepting Visa card payments online. You can save trees and reduce carbon emissions. In fact, for every 10,000 bills paid electronically, 3,729 pounds of paper are saved and more than 148,398 pounds of greenhouse gas emissions are eliminated.' Continued on back > VISA $43T $9.7T Other General Purpose 7.6% Other Cards Checks _—.0000 Other 15.6% Other General Purpose o. Other Cards h6- 'W"'F Other 1997 2007 Over the past decade, consumers have continued to move away from writing and mailing checks, while Visa's share has continued to rise.' For more information, visit www.visa.com /merchantbillpay or contact your Visa Account Executive: Name: Phone: Email: Visa's Zero Liability policy covers U.S.- issued cards only and does not apply to ATM transactions, PIN transactions not processed by Visa, or certain commercial card transactions. Cardholder must notify issuer promptly of any unauthorized use. Consult issuer for additional details or visit www.visa.com /security. ' Edison Electric Institute, 2007 'Visa Master List /Utility Program, November 2007 'Bureau of Economic Analysis, Nilson Report, 'Credit Card Acceptance, September 2007 'Marketwire, December 2007 PayStream Advisors, and Visa Estimates, 2007 'Javelin Strategy and Research, 2007 'Cards & Payments, May 2007 © 2009 Visa U.S.A. Inc. Increase Profits and Operate More Efficiently • Improve cash flow since Visa card bill payments are received and post faster than check payments. • Reduce charge -offs by instantly shifting all non - payment risk to the financial institution once card transactions are authorized. • Receive electronic notification of changes to cardholder account information, "Our relationship with Visa will such as a new card expiration date or product upgrade, in a timely manner allow SRP to further deliver on our with Visa Account Updater. commitment to service options and Become Part of One of Visa's Fastest Growing Sectors convenience ... by providing recurring bill payment services, while also Utility bill payment is one of Visa's fastest growing sectors. In fact, 85% of utilities allowing us is realize operational and energy- service providers have the ability to receive electronic payments. benefits like lower bottom line • It's so convenient that customers want card options for utility bills. Since customer service costs, streamlined there's no need to write checks or hunt for stamps, Visa bill payments save customers time and hassles, billing and other operating efficiencies." • Bill payments are secure. Visa's Zero Liability policy protects customers against Michael Lowe fraud, including bill payments made online or by phone.* Manager of Customer Service Salt River Projects • Bill payments qualify for rewards. Customers enrolled in an incentive program will earn points or miles for bills paid with their Visa card. It's another advantage to making payments with a Visa card instead of writing checks. $43T $9.7T Other General Purpose 7.6% Other Cards Checks _—.0000 Other 15.6% Other General Purpose o. Other Cards h6- 'W"'F Other 1997 2007 Over the past decade, consumers have continued to move away from writing and mailing checks, while Visa's share has continued to rise.' For more information, visit www.visa.com /merchantbillpay or contact your Visa Account Executive: Name: Phone: Email: Visa's Zero Liability policy covers U.S.- issued cards only and does not apply to ATM transactions, PIN transactions not processed by Visa, or certain commercial card transactions. Cardholder must notify issuer promptly of any unauthorized use. Consult issuer for additional details or visit www.visa.com /security. ' Edison Electric Institute, 2007 'Visa Master List /Utility Program, November 2007 'Bureau of Economic Analysis, Nilson Report, 'Credit Card Acceptance, September 2007 'Marketwire, December 2007 PayStream Advisors, and Visa Estimates, 2007 'Javelin Strategy and Research, 2007 'Cards & Payments, May 2007 © 2009 Visa U.S.A. Inc. �M MerchantPartners ACH ORIGINATOR USING A THIRD PARTY SENDER AGREEMENT This Agreement for Automated Clearing House ( "ACH ") Services (this "Agreement") is applicable to certain services that the Bank and Third Party Originator (as defined below and collectively referred to herein as the "Provider ") agree to provide to the undersigned customer ( "Customer "). Except as otherwise indicated, and unless the context otherwise clearly requires, the following terms shall have the following meanings in all parts of this Agreement: (a) "Bank" means the bank that is utilized by the Third Party Originator in order to allow Customer to process ACH transactions. (b) "Third Party Originator" means Innuity, Inc. doing business as Merchant Partners or any of its referral partners, affiliates, parents or subsidiaries. 1. Services. Bank agrees to provide ACH services to Customer, which will consist of sending and /or receiving ACH transactions based on information and instructions provided to Bank by Customer's Third Party Originator (identified below). Third Party Originator shall be considered Customer's agent with full power and authority to act on behalf of Customer, until Bank receives written notice from Customer to the contrary and has had a reasonable opportunity to act thereon. Bank will debit and /or credit transactions to an account designated by Third Party Originator (the "Account"), regardless of whether the Account is held in the name of Third Party Originator or Customer. All bank statements, notices and other communications in respect of the Account or the transactions hereunder shall be directed by Bank to Third Party Originator. Although the Account may designate that it is for the benefit of Customer, CUSTOMER UNDERSTANDS AND AGREES THAT CUSTOMER'S THIRD PARTY ORIGINATOR HAS FULL AND EXCLUSIVE POWER AND AUTHORITY TO PROVIDE BANK WITH INSTRUCTIONS PERTAINING TO THE ACCOUNT, INCLUDING, WITHOUT LIMITATION, THE AUTHORITY TO INSTRUCT BANK TO INITIATE ACH DEBITS AND CREDITS FROM THE ACCOUNT, TO ORDER SWEEPS FROM THE ACCOUNT, AND TO OTHERWISE MAKE TRANSFERS FROM THE ACCOUNT. BANK HAS NO OBLIGATION OR LIABILITY WHATSOEVER WITH RESPECT TO: (1) ACTS, ERRORS, OMISSIONS OR DELAYS BY THIRD PARTY ORIGINATOR; (2) REPRESENTATIONS OR WARRANTIES MADE BY THIRD PARTY ORIGINATOR; (3) LOSSES TO CUSTOMER ARISING OUT OF THIRD PARTY ORIGINATOR'S INSOLVENCY; OR (4) MISAPPROPRIATION OF CUSTOMER'S FUNDS BY THIRD PARTY ORIGINATOR. THIRD PARTY ORIGINATOR IS NOT AN AGENT OR REPRESENTATIVE OF BANK AND HAS NO POWER OR AUTHORITY TO ACT OR MAKE COMMITMENTS ON BEHALF OF BANK. BANK DOES NOT INTEND TO AND HAS NO OBLIGATION TO MONITOR TH M PARTY ORIGINATOR'S'S TRANSACTIONS IN RESPECT OF CUSTOMER'S FUNDS. 2. Compensation. Bank's sole compensation for services rendered shall be due from Third Party Originator. 3. Customer Account Responsibilities. Customer understands and agrees that sufficient balances in available funds must be maintained in the Account to cover all debit transactions, if ACH-Services-Agreement 1- 11- 07.DOC Page 1 1/11/2007 MerchantRartners any, submitted by Customer or Third Party Originator to Bank. If the Account does not have sufficient balances, Bank may decline to forward such transactions. Customer shall immediately reimburse Bank for any overdrafts created on the Account, whether through the originating credit transactions for which there were not sufficient funds, or for returns received by Bank in respect of originating debit transactions from the Account. 4. Provider's Obligations. Provider agrees to comply with the terms of this Agreement and agrees to use ordinary care in performing ACH services hereunder. So long as Provider exercises such diligence as the circumstances may require, Provider's failure or delay in performance will be excused if due to interruption of communications or computer facilities, failure of equipment, emergency conditions or other circumstances beyond Provider's control. Bank reserves the right to reject any ACH transfer directions submitted by Third Party Originator (but has agreed to give Third Party Originator prompt telephonic notice thereof). 5. Customer's Responsibility. Customer is responsible for the results of using ACH services and for the accuracy and adequacy of the data Customer or Customer's Third Party Originator provides to Bank. Bank is not responsible to third parties for Customer's use of ACH services (such as, but not limited to, the third parties to whom ACH debit or credits are transmitted hereunder on behalf of Customer). If a third party claim is made against Bank arising out of Customer's use of the ACH services, breach of this Agreement, or breach of any warranty under the Rules (as referenced in Section 5), Customer agrees to defend, indemnify and hold Bank harmless against such claim. The foregoing obligation of Customer shall be primary and independent of, and Bank shall have no obligation to assert or pursue, any indemnification or other rights it may have pursuant to its agreement with Third Party Originator. 6. Compliance With Law. (a) Regulation E: NACHA Rules. Customer agrees to comply with the Electronic Fund Transfer Act, Federal Reserve Regulation E, the Fair Credit Reporting Act and similar state laws and regulations, to the extent the same may be applicable to the ACH transactions processed hereunder. Customer agrees that all ACH entries Customer's Third Party Originator requests us to originate are the result of bona fide business transactions between Customer and its customers and no such entries are, directly or indirectly, for the benefit of any third party whether in a service bureau or other context. Customer understands that Customer will be considered the Originator of ACH transactions submitted hereunder, and agrees to comply with all rules and operating guidelines of the National Automated Clearing House Association (collectively, the "Rules ") applicable to Originators, as the same may be applicable to ACH transactions processed hereunder. Customer agrees to Schedule 1, attached and incorporated hereto, entitled "Compliance Update for ACH Originators" as such may be revised from time to time (the "ACH Update "). Customer understands that the ACH Update is not a complete or exclusive summary of ACH rules. Customer agrees that Provider may provide Customer with revised ACH Updates from time to time in the future. If Customer's Third Party Originator continues to initiate entries after Provider provides such an ACH Update, Customer will be considered to have agreed to the terms set forth in that ACH Update (except that if Customer ceases initiation of entries within 45 days after the date of such an ACH Update, initiation of entries during that 45 -day period will not constitute Customer's agreement). (b) Other Compliance. Customer is prohibited from using Provider services in any manner or in furtherance of any activity that constitutes a violation of any law or regulation or that may reasonably be expected to subject Provider or its vendors to investigation, prosecution or ACH—Services—Agreement 1- 11- 07.DOC Page 2 1/11/2007 Q) Merchant, aners legal action. Customer further agrees: (1) to receive, resolve and respond to consumer- alleged errors under applicable laws, regulations and the Rules; and (2) Customer is responsible for promptly handling and, if necessary, responding to and resolving at your Customer's expense any Special Handling Claims (as defined in the ACH Update). 7. Security Procedure. ACH transfers will be issued in response to the instructions that Bank receives from Customer's Third Party Originator and will be considered authentic if accompanied by the appropriate password supplied to Customer's Third Party Originator. This security procedure is intended to verify the authenticity of ACH transfer directions, not errors in transmission or content. S. Disclaimer. CUSTOMER UNDERSTANDS AND AGREES THAT (i) PROVIDER'S SOLE LIABILITY WITH RESPECT TO SERVICES PROVIDED HEREUNDER SHALL BE AS SET FORTH HEREIN; AND (ii) ALL CUSTOMER COMPLAINTS AND CLAIMS CONCERNING THE SERVICES PROVIDED HEREUNDER ARE TO BE MADE SOLELY AND EXCLUSIVELY AGAINST THIRD PARTY ORIGINATOR. IN THE EVENT THAT PROVIDER FAILS TO PERFORM SERVICES PROPERLY, CUSTOMER'S SOLE AND EXCLUSIVE REMEDY AND PROVIDER'S SOLE OBLIGATION SHALL BE FOR PROVIDER TO REPERFORM THE SERVICES AT ITS OWN EXPENSE. PROVIDER DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL IN RESPECT OF THE SERVICES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. SERVICES ARE NOT WARRANTED TO BE FREE FROM ERROR OR INTERRUPTION. PROVIDER SHALL HAVE NO LIABILITY, WHETHER ARISING IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, TO CUSTOMER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR PROVIDER'S SERVICES. IN NO EVENT WILL PROVIDER BE LIABLE TO CUSTOMER FOR SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL OR EXEMPLARY DAMAGES, REGARDLESS OF WHETHER PROVIDER WAS INFORMED OF THEIR POSSIBILITY AND REGARDLESS OF WHETHER ANY LIMITED REMEDY HEREIN FAILS OF ITS ESSENTIAL PURPOSE. CUSTOMER ACKNOWLEDGES AND AGREES THAT THE FOREGOING LIMITATIONS OF LIABILITY ARE REASONABLE GIVEN THE FACT THAT NO COMPENSATION IS BEING PAID TO BANK BY CUSTOMER HEREUNDER. CUSTOMER'S REMEDIES HEREIN ARE EXCLUSIVE AND IN LIEU OF ALL OTHER REMEDIES IN LAW OR EQUITY. 9. Term. This Agreement shall remain in effect until either party has terminated this Agreement, with or without cause, upon 30 days notice to the other. Terminations shall be effective as to prospective transactions only, and shall not alter the rights of the parties as to transactions prior to the effective date of termination. 10. Notices. Notices hereunder shall be in writing and provided via hand - delivery, facsimile, or U.S. mail to the address of the party set forth above the parties' signatures, or to such other address as the parties may from time to time specify in writing. Notices shall be deemed given on receipt. 11. Risk Management. Customer is solely responsible for all acts and omissions of its officers, directors, partners, employees, agents, representatives, contractors, and third party service providers (such as third party payroll administrators), including Customer's Third Party Originator and including persons granted signature authority on Customer's accounts and ACH—Services—Agreement 1- 11- 07.DOC Page 3 1/11/2007 Merchant irtners personnel who are permitted to initiate and/or give Bank instructions in respect of Customer's entries (collectively, "Your Personnel "). Bank is entitled, without further inquiry or investigation, to assume that the actions of Your Personnel are appropriate and authorized by Customer. This authorization will remain in effect unless Bank receives written notice to the contrary from Customer and has a reasonable opportunity to react thereto. Customer is strongly advised to establish and maintain policies and procedures and accounting and auditing controls that will prevent (or at least allow the early detection of) fraud or other unauthorized activity by Your Personnel. As between Customer and Bank, Customer agrees to accept sole responsibility for losses attributable to any and all acts and omissions of Your Personnel. 12. Privacy. Provision of services hereunder may require that Provider receive certain information concerning Customer's consumers (e.g., their checking account numbers). Provider agrees to use reasonable efforts to maintain the confidentiality of such information and agrees not to use or disclose the same except as necessary in connection with the provision of services to Customer. Disclosures of the type described in 12 C.F.R. Sections 40.9, 40.10 and 40.11 shall not be deemed prohibited by the foregoing. Customer is solely responsible for obtaining and maintaining any and all necessary rights, power and authority to provide this information to Provider and for providing applicable privacy disclosures, if any, to its consumers. 13. Miscellaneous. This Agreement: (a) constitutes the entire agreement between the parties with respect to the subject matter hereof; (b) cannot be amended except in writing signed by the parties; (c) shall be binding upon and inure to the benefit of the parties and their successors and assigns; (d) may not be assigned by Customer without Provider's written consent, which will not be unreasonably withheld; and (e) shall be governed by and construed in accordance with the laws of the State of California. NOTICE Credit given by Bank to Customer with respect to an ACH credit entry is provisional until Bank receives final settlement for such entry through a Federal Reserve Bank. If Bank does not receive such final settlement, Customer is hereby notified and agrees that Bank is entitled to a refund of the amount credited to Customer in connection with such entry, and the party making payment to Customer via such entry i.e., the originator of the entry) shall not be deemed to have paid Customer in the amount of such entry. Under the operating rules of the National Automated Clearing House Association, which are applicable to ACH transactions involving Customer's Account, Bank is not required to give next day notice to Customer of receipt of an ACH item and Bank will not do so. However, Bank will continue to notify Customer of the receipt of payments in the periodic statements Bank provides to Customer. Bank may accept on Customer's behalf payments to Customer's account which have been transmitted through one or more Automated Clearing Houses and which are not subject to the Electronic Fund Transfer Act and Customer's rights and obligations with respect to such payments shall be construed in accordance with and governed by the laws of the state of California, unless it has been otherwise specified in a separate agreement that the law of some other state shall govern. In all matters between Customer and Bank, California law shall govern. ACH—Services—Agreement 1- 11- 07.DOC Page 4 1/11/2007 V..) MerchantPartners CHANGES TO THESE TERMS AND CONDITIONS MUST BE APPROVED BY AN AUTHORIZED OFFICER OF BANK. SALES REPRESENTATIVES ARE NOT PERMITTED TO MAKE ANY REPRESENTATION OR WARRANTY NOT CONTAINED HEREIN AND CANNOT WAIVER, ALTER OR AMEND THE PRINTED TERMS AND CONDITIONS HEREOF. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date(s) indicated below. MERCHANT PARTNERS ACH Banking Operations 12424 Wilshire Blvd. Suite 1170 Los Angeles, CA 90025 Tel: (310) 826 -2323 Fax: (310) 826-0404 Signature Name Title Date CUSTOMER Name Address City, State Zip Phone Fax Signature Name Title Date ACH Servim_Agreement I- 11- 07.DOC Page 5 1/11/2007 ACH Services Request MeiCilat1�w ry We request that Merchant Partners activate ACH Services for the followine: Please fax the completed application to 310 - 826 -0404 Business LEGAL Name: Business Name/DBA Name: Account ID: S website URL: E -mail Address: Contact Name: Contact Mailing/Billing Address: City: State: Zip Code: Office Phone Number: Mobile Phone Number: Office Fax Number: Home Phone Number: D and B Number: SIC Code: Business Open Date: Length of Current Ownership: Type of Business: Method of ACH Authorization: Products Sold To: Type of Goods/Services Sold (Attach a product brochure): Written Contract 0% ❑ Attach a copy of the written contract Consumers 0% Internet Initiated 0% ❑ URL of Payment Page: mvw.url.com Businesses 0% Telephone Initiated 0% ❑ Inbound ❑ Outbound (Attach call script) Total 0% Type of Advertising Used (How new customers are obtained): Check Conversion 0% ❑ Check Scanner used: Make/Model Customer Base: 0 Total 0% Must total 100% Projected Monthly Volumes Have You Ever Been Placed on the TMF (Terminated Merchant File) by MasterCard? Please explain: ACH Debit Amount: Number ACH Debits: ACH Debit Return Amount: Number ACH Debit Returns: $0 0 $0 0 ❑ Yes ❑ No ACH Credit Amount: Number ACH Credits: ACH Credit Return Amount: Number ACH Credit Returns: Have You Ever Filed Bankruptcy? Please explain: $0 0 $0 0 ❑ Yes ❑ No t , .. 3 Current Merchant Account Provider: Contact: Phone Number: Merchant Account #: Provide a letter from your Merchant Account Bank ( ) - stating the Terms and Limits for your processing Current ACH Services Provider: Contact: Phone Number: Length of Relationship: Attach ACH Processing history for the last three ( ) months Bank Reference Name: Contact: Phone Number: Account #: Trade Reference I: Contact: Phone Number: Account #: Trade Reference 2: Contact: Phone Number: Account #: Trade Reference 3: Contact: Phone Number: Account #: APPLICANT OWNERSHIP INFORMATION Ownership Type: Provide copies of your Letter of Federal Tax ID# (9 digits): Incorporation Voided ❑Corporation ❑Partnership ❑Individual ❑LLC ❑Other Business Check Business C e Business License Number: License Issuing City, State: License Issue Date: State Tax I.D. Number: State Tax I.D. Issuing State: State Tax I.D. Issue Date: In connection with my request for ACH Services, I understand that a consumer report or an investigative consumer report may be requested that will include information as to my character, work habits, performance, and experience. I acknowledge that a telephonic facsimile (FAX) or photographic copy shall be as valid as the original. I hereby authorize, without reservation, any agency, institution, information service bureau, reference or insurance company contacted by COMPANY or its agent, to furnish the information described above. The Fair Credit Reporting Act gives you specific rights in dealing with consumer reporting agencies. A summary of these rights is available on request. Principal Owner/Partner /Ofcer #I Principal Owner/Partner /Ofcer #2 Last Name: First Name: ML Last Name: First Name: MI: Home Address: City: State: Zip Code: Home Address: City: State: I Zip Code: Title in Business: % Ownership: Phone Number: Title in Business: % Ownership: Phone Number: 0% ( ) - 0% ( ) - Driver's License/State: Date of Birth: Social Security Number: Driver's License/State: Date of Birth: Social Security Number: Provide copies of your Driver's License and Social Security Card Provide copies of your Driver's License and Social Securit Card Have You Ever Filed Bankruptcy? were You Ever Convicted of a Crime? Have You Ever Filed Bankruptcy? were You Ever Convicted of a Crime? ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No If you answered "Yes' to either of the above questions, please explain: If you answered "Yes" to either of the above questions, please explain: Authorizing Signature: Authorizing Signature: Included Princi als must omj2rise 51% or more of total ownershfil. Use extra miges if re aired. APPLICANT SIGNATURE By the signature below, signer attests the above information to be true. Principal's Signature: Principal's Name (Please Print): Date: Please fax the completed application to 310 - 826 -0404 Bluefin� Payrrient Systems Thank you for selecting us for your payment processing needs. Accepting numerous payment options provides a convenience to your customers, increases your customers' ability to make purchases at your establishment, and helps speed payment to your account. These Program Terms and Conditions ( "the Program Guide ") presents terms governing the acceptance of Visa® MasterCard° and Discover® Network Credit Card and Non -PIN Debit Card payments. The Program Guide also includes provisions applicable to American Express° and Non -Bank Services. References to American Express in this Program Guide refer to the American Express OnePoint Program unless otherwise indicated. Non -Bank Services include all services related to: JCB® Card, PIN Debit Card, and Electronic Benefits Transfer payments, TeleCheck® check services, and acceptance of Cards from other Non -Bank Card Organizations such as Voyager Fleet Systems, Inc. ( "Voyager "), Wright Express Corporation and Wright Express Financial Services Corporation (collectively, "WEX "). Your Merchant Processing Application will indicate the types of payments and Services you have elected to accept. This Program Guide, your Merchant Processing Application and the schedules thereto (collectively, the "Agreement "), contains the terms and conditions under which Processor and /or Bank and/or other third parties, such as TeleCheck for check services, will provide services to you. We will not accept any alterations or strike -outs to the Program Guide and, if made, any such alterations or strike -outs shall not apply. Please read this Program Guide completely as it contains important information. You acknowledge that all Services referenced in the Agreement may not be available to you. IMPORTANT INFORMATION ABOUT BANK'S RESPONSIBILITIES: Discover Network Card Transactions, American Express Card Transactions and Non -Bank Services are not provided to you by Bank, but are provided by Processor and/or third parties. The provisions of this Agreement regarding Discover Network Card Transactions, American Express Card Transactions and Non -Bank Services constitute an agreement solely between you and Processor and/or third parties. Bank is not a party to this Agreement insofar as it relates to Discover Network Card Transactions, American Express Card Transactions and Other Services, and Bank is not responsible, and shall have no liability, to you in any way with respect to Discover Network Card Transactions, American Express Card Transactions and Non -Bank Services. OTHER IMPORTANT INFORMATION: Cards present risks of loss and non - payment that are different than those with other payment systems. In deciding to accept Cards, you should be aware that you are also accepting these risks. Visa U.S.A., Inc. ( "Visa ") MasterCard Worldwide ( "MasterCard "), DFS Services LLC ( "Discover Network "), and American Express Company, Inc. ( "American Express ") are payment card networks that electronically exchange Sales Drafts and Chargebacks for Card sales and Credits. Sales Drafts are electronically transferred from banks (in the case of MasterCard and Visa transactions) or network acquirers (in the case of Discover Network transactions) that acquire them from merchants such as yourself through the appropriate Card Organization, to the Issuers. These Issuers then bill their Cardholders for the transactions. The Card Organizations charge the Acquirers interchange fees and assessments for submitting transactions into their systems. A substantial portion of the Discount Rate or Transaction Fees that you pay will go toward these fees and assessments. In order to speed up the payment process, the Issuer transfers the funds back through the Card Organization to the Acquirer at approx- imately the same time that the Issuer receives the electronic Sales Drafts. Even though the payments under this system are made simultaneously, all payments made through the Card Organizations are conditional and subject to reversals and adjustments. Each Card Organization has developed Card Organization Rules that govern their Acquirers and Issuers and the procedures, responsi- bilities and allocation of risk for this process. Merchants are also bound by Card Organization Rules. The Card Organization Rules and applicable laws give Cardholders and Issuers certain rights to dispute transactions, long after payment has been made to the merchant, including Chargeback rights. We do not decide what transactions are charged back and we do not control the ultimate resolution of the Chargeback. While we can attempt to reverse a Chargeback to the Issuer, we can only do so if the Issuer agrees to accept it or the Card Organization requires the Issuer to do so after a fonnal appeal process. Sometimes, your customer may be able to successfully charge back a Card transaction even though you have provided your goods or services and are otherwise legally entitled to payment from your customer. While you may still be able to pursue claims directly against that customer, neither we nor the Issuer will be responsible for such transactions. You will be responsible for all Chargebacks and adjustments associated with the transactions that you submit for processing Please refer to the Glossary for capitalized terms used in the Agreement, including this Preface (if not defined above). BPS1507(ia) PROCESSOR Name:_ INFORMATION: Address: U RL: Customer Service Please read the Program Guide in its entirety. It describes the terms under which we will provide merchant processing Services to you. From time to time you may have questions regarding the contents of your Agreement with Bank and /or Processor or the contents of your Agreement with TeleCheck. The following information summarizes portions of yourAgreement in order to assist you in answering some of the questions we are most commonly asked. I. Your Discount Rates are assessed on transactions that qualify for certain reduced interchange rates imposed by MasterCard and Visa. Any transactions that fail to qualify for these reduced rates will be charged an additional fee (see Section 18 of the Program Guide). 2. We may debit your bank account from time to time for amounts owed to us under the Agreement. 3. There are many reasons why a Chargeback may occur. When they occur we will debit your settlement funds or settlement account. For a more detailed discussion regarding Chargebacks see Section 10 of Card Processing Operating Guide or see the applicable provisions of the TeleCheck Services Agreement. 4. If you dispute any charge or funding, you must notify us within 60 days of the date of the statement where the charge or funding appears for Card Processing or within 30 days of the date of a TeleCheck transaction. S. The Agreement limits our liability to you. For a detailed descrip- tion of the limitation of liability see Section 20 of the Card Processing General Terms; or Section 1.14 of the TeleCheck Services Agreement. 6. We have assumed certain risks by agreeing to provide you with Card processing or check services. Accordingly, we may take certain actions to mitigate our risk, including termination of the Agreement, and/or hold monies otherwise payable to you (see Card Processing General Terms in Section 23, Term; Events of Default and Section 24, Reserve Account; Security Interest), (see TeleCheck Services Agreement in Sections 1.1, 1.3.2, 1.3.9, 1.6), under certain circumstances. 7. By executing this Agreement with us ),on are authorizing us and our Affiliates to obtain financial and credit information regarding your business and the signers and guarantors of the Agreement until all your obligations to us and our Affiliates are satisfied. 8. The Agreement contains a provision that in the event you terminate the Agreement early, you will be responsible for the payment of an early termi- nation fee as set forth in Part IV, A.3 under "Additional Fee Information" and Section 1 of the TeleCheck Services Agreement. 9. If you lease equipment from Processor, it is important that you review Section 1 in Third Party Agreements. Bank is not a party to this Agreement. THIS IS A NON - CANCELABLE LEASE FOR THE FULL TERM INDICATED. 10. Card Organization Disclosure Visa and MasterCard Member Bank Information: Wells Fargo Bank N.A. The Bank's mailing address is 1200 Montego Way, Walnut Creek, CA 94598, and its phone number is (925) 746 -4143. Important Member Bank Responsibilities: a) The Bank is the only entity approved to extend acceptance of Card Organization products directly to a Merchant. b) The Bank must be a principal (signer) to the Merchant Agreement. c) The Bank is responsible for educating Merchants on pertinent Visa and MasterCard rules with which Merchants must comply; but this information may be provided to you by Processor. d) The Bank is responsible for and must provide settlement funds to the Merchant. e) The Bank is responsible for all funds held in reserve that are derived from settlement. Print Client's Business Legal Name: Important Merchant Responsibilities: a) Ensure compliance with Cardholder data security and storage requirements. b) Maintain fraud and Chargebacks below Card Organization thresholds. c) Review and understand the terms of the Merchant Agreement. d) Comply with Card Organization rules. e) Retain a signed copy of this Disclosure Page. f) You may download "Visa Regulations" from Visa's website at: http://usa.visa.coin/merchants/operations/op—regulations.html g) You may download "MasterCard Regulations" from MasterCard's website at: http://-,v-,v-%v.tnastercard.com/us/merchant/support/rules.html By its signature below, Client acknowledges that it has received the complete Program Guide [version 13PS1507(ia) 1 consisting of 39 pages (including this confirmation). Client further acknowledges reading and agreeing to all terms in the Program Guide, which shall be incorporated into Client's Agreement. Upon receipt of a signed facsimile or original of this Confirmation Page by us, Client's Application will be processed. NO ALTERATIONS OR STRIKE -OUTS TO THE PROGRAM GUIDE WILL BE ACCEPTED. Client's Business Principal: Signature (Please sign below): El Title Please Print Name of Signer BPS1507(ia) Date CITY OF SHOREWOOD RESOLUTION NO. 14- A RESOLUTION AUTHORIZING STAFF TO ENTER INTO PAYMENT PROCESSING WITH SPRINGBROOK SOFTWARE AND THEIR MERCHANT PROCESSOR WHEREAS, the City Council desires to provide excellent customer service for Shorewood utility customers; and WHEREAS, Springbrook Software has a program that allows utility customers to view and manage their own account information and payment processing online; and WHEREAS, the City Council wants to allow utility customers the option of paying for their services through either ACH debit or by credit /debit card; and WHEREAS, the City of Shorewood desires to participate in the program; NOW THEREFORE, BE IT RESOLVED, that the City of Shorewood authorizes staff to enter into all necessary agreements with Springbrook Software, their merchant processor, and credit card companies to participate in a credit card payment program for utility customers with no convenience fees charged to customers. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of June, 2014 ATTEST: Jean Panchyshyn, City Clerk Scott Zerby, Mayor #10B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Christmas Lake — Slow No Wake Restriction Request Meeting Date: 23 June 2014 Prepared by: Brad Nielsen Attachments: E -mail from Christmas Lake Homeowners Association Policy Consideration: Should the City enact Slow No Wake restrictions on Christmas Lake? Background: We just received a request from the CLHA, asking the City to enact Slow No Wake restrictions on Christmas Lake (see attached e -mail from Joe Shneider). Staff is looking into what it takes to enact and enforce such regulations. In light of the late receipt of this request, whatever staff finds will be forwarded under separate cover. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 From: Joseph Shneider [jshneider @visi.com] Sent: Thursday, June 19, 2014 3:11 PM To: Brad Nielsen Cc: JNS JNS; Bill Joynes; Craig Dawson Subject:High water designation for Christmas Lake Attachments: image.jpeg; ATT00001.txt; image.jpeg; ATT00002.txt :.• The water level on Christmas Lake is extreme at this time. As the President of Christmas Lake Homeowners Association, we are requesting the City of Shorewood arrange for declaring a no wake zone for Christmas Lake due to the potential for significant shoreland erosion and other associated damage. I understand you will be addressing this at the Council meeting on Monday, but believe that action should be taken immediately. Attached is a photo of the spillway from Christmas Lake to Lake Minnetonka taken today about 2:45 pm. I've also attached a photo taken at the same spot yesterday. Please do what you can. As one of the few lakes in the areas without that restriction we are very concerned that we will be overrun by transient boats looking for any place they can recreate. Wakeboard boats are especially problematic related to the intentional size of the wakes they create. Thank you, Jean Panchyshyn From: Brad Nielsen Sent: Sunday, June 22, 2014 3:07 PM To: Bill Joynes; Jean Panchyshyn; Larry Brown; Keane, Timothy J.; Julie Moore; Debbie Siakel - Contact; Richard Woodruff - Contact; Kristine Sundberg - Contact; Laura Hotvet - Contact; Scott Zerby - Contact Cc: Joseph N. Shneider Subject: Christmas Lake Restrictions Attachments: Christmas Lake High Water Declaration.doc; Ch La Media Release.doc; Ch La No Wake Sign.doc; Draft Code Amendment Ch 109.doc; Ch La Weir - normal.pdf; Ch La Weir - high water. pdf As mentioned in the Council packet, the City has received a request from the Christmas Lake Homeowners Association to declare Christmas Lake a Slow -No -Wake zone. Joe Shneider, the president of the CLHA, asked that the City do something in advance of the weekend for fear of boat traffic coming from other wake restricted lakes. On Friday, the Mayor came in to sign the emergency declaration (see attached). A media release was also posted on the website (see attached) and in the local newspaper. Finally, a sign was posted at the Christmas Lake Access (see attached), advising boaters of the no -wake restrictions. The Mayor also notified the police department of the declaration. Attached is a draft of ordinance language that, hopefully, will make everything we have done legal. Revisions to Section 109 of the City Code are shown in red. Staff thought it would be most useful to see how the amendment fits into the current language. At or before Monday night's meeting we will forward the amendment to Section 109 in amendment format. Also, the formal amendment will be reviewed by the City Attorney for any edits he may have. Obviously, enforcement of the ordinance will be an issue. It should be noted that this ordinance should be viewed as a temporary fix. For example, the threshold for declaring an emergency is stated as a point on the outlet weir for Christmas Lake (see attached photos provided by Joe Shneider). Ultimately, this should probably be changed to reference a specific elevation. You will also note that the declaration limits boat speed to 5 mph. That is the speed that has been posted for Lake Minnetonka. If you have any questions relative to any of the above, please do not hesitate to call or e -mail me. Just "Business as usual ". Have a nice remainder of the weekend! Planning Director 952 - 960 -7912 ...................... . � i 212 i CITY OF SHOREWOOD EMERGENCY DECLARATION OF SLOW -NO WAKE RESTRICTIONS ON CHRISTMAS LAKE WHEREAS, record rainfall levels have created a high water elevation on Christmas Lake; and WHEREAS, the City has declared the trigger point for high water on Christmas Lake as the point at which the water flows over the western edge of the wide concrete barrier; and WHEREAS, slow -no wake restrictions are implemented to protect the shoreline and structures along the shoreline; NOW, THEREFORE, BE IT DECLARED, the entire Christmas Lake water body is declared as slow -no wake for all watercraft. No person shall operate a watercraft at a speed which exceeds Five (5) miles per hour until further notice. DECLARED THIS 20TH DAY OF JUNE, 2014 Scott Zerby, Mayor June 20, 2014 As a result of the heavy rains, please be aware of the following: Due to high water, Christmas Lake is a no wake zone for all boats. Effective immediately, it is unlawful for a person to operate a watercraft on Christmas Lake at a speed that results in more than a minimum wake. "Minimum wake" means the wake moving out from a watercraft and trailing behind in a widening "V" is of insufficient size to affect other watercraft or to be detrimental to the shoreline. This order is in effect until further notice. For more information contact Planning Director, Brad Nielsen, City of Shorewood, 952.960.7912. HIGH WATER DECLARATION CHRISTMAS LAKE OW -NO- CHAPTER 109 HARBOR LIMITS Section 109.01 Harbor limits established 109.02 Jurisdictional limit 109.03 Lake Minnetonka Conservation District Code 109.01 HARBOR LIMITS ESTABLISHED. The geographical and jurisdictional limits of the city in, on and over navigable waters in or adjacent to the city shall extend to the harbor limits of any adjoining municipality or other governmental unit. Subd. 1. Primary harbor limit. The area within 300 feet of the water line on the shore of any lake or other body of water in or adjacent to the city shall be known as the "primary harbor limit." Subd. 2. Secondary harbor limit. The area extending from 300 feet of the water line on the shore of any lake or other body of water in or adjacent to the city and to the harbor limits of any adjoining municipality or other governmental unit shall be known as the "secondary harbor limit." Subd. 3. Emergency harbor limit. Emergency slow -no wake areas may be declared by the Mayor and ratified by the City Council at its next available meeting and shall be marked in accordance with the appropriate regulations of the Minnesota Department of Natural Resources and posted at all public accesses. "Emergency harbor limit" may include the primary harbor limit, the secondary harbor limit or the entire lake or water body, as determined necessary by the City Council. a. Special slow -no wake restrictions — Christmas Lake. All persons shall operate watercraft at a slow -no wake speed on Christmas Lake whenever the water elevation reaches the point at which water flows over the western edge of the weir located at the northerly outlet from Christmas Lake. The slow -no -wake restriction shall remain in place until the water has been 0.1 feet below the western edge of the aforementioned weir for three consecutive days, or 30 days from the enactment of the restriction, whichever comes first. The restrictions may be extended upon approval by the Minnesota Department of Natural Resources. Upon the placement of a slow -no wake restriction, notice will be given: (1) On a sign posted at the public access. (2) On the City of Shorewood web page. (3) On the Community Cable Access Channel. (4) In an e -mail format to known representatives on Christmas Lake. (5) To the Hennepin County Sheriff s Department. (6) To the South Lake Minnetonka Police Department. (7) To the City of Chanhassen. (8) To the public by other appropriate means determined by the City Council. b. Watercraft utilized by resource management, emergency and enforcement personnel, when acting in the performance of their assigned duties, shall be exempt from the provisions of this section. (1987 Code, § 109.01) 109.02 JURISDICTIONAL LIMIT. The harbor limits of this city shall be deemed not to extend beyond a point half way between the shores of the body of water over which this city has jurisdiction and the shores of the body of water located in another city or governmental unit. (1987 Code, § 109.02) (Ord. 12, passed 8 -14 -1956) 109.03 LAKE MINNETONKA CONSERVATION DISTRICT CODE. The Lake Minnetonka Conservation District Code of Ordinances (hereinafter referred to as LMCD Code) is hereby incorporated by reference. Where the Shorewood City Code imposes more stringent regulations than state laws, rules or regulations, or more stringent regulations than those set out in the LMCD Code, it is the intent of the City Council that the provisions of the Shorewood City Code prevail to the extent permitted by law. Those regulations established in the most recently amended LMCD Code shall control. (1987 Code, § 109.03) June 18., 2014 1c. Y Suggest this west edge of A . ,;� , F *• •• -. k;� ' the broad concrete barrier �, 4 -:• __ _r as the trigger point x+ r + - +!y _rt+ ..�L- L��}•1 ii�+_.711. r.�l• 1 `J��,� Wf�lLLltsi✓�'..3�algYif�.lw w. I ;, ► - y , a: I-NA, k p". A". Added Item MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title/Subject: Community Sandbags Meeting Date: June 23, 2014 Prepared by: Larry Brown, Director of Public Works Reviewed by: Attachments Policy Consideration: Should the City of Shorewood supply sandbags to residents? Background: Typically every disaster points to the need for new decisions, or tests the policies that are in place to new limits. The current flooding event is no exception. All of the Lake Area communities are receiving requests for sandbags, by residents. Currently, there is not a policy, fee schedule or practice that is in place that suggests that cities supply these. The high waters and continued forecasts for rain have pushed these requests to the forefront. The emergency managers and City Administrators /Managers for the area conducted a progress meeting and discussed that many cities have been pressed regarding this issue. Lacking any policy or set practice for any of the communities in attendance, it was decided that as a short term solution, that each home that specifically called in a request for sandbags could show up at one of two sandbag stations set up (one at Shorewood Public Works and one at Deephaven Public Works) show a driver's license or ID card, and obtain a maximum of 25 sandbags per household. Residents could then fill the bags themselves with the sand provided at the site. Each community would cover the costs for the bags and sand. Staff calculated out that at the current rate, 25 bags equates to the following direct costs: $ 5.54 of sand to fill 25 bags $ 9.75 for sandbags per 25 bags Total Material Cost for 25 sandbags = $15.29 It is also noted that there are other personnel costs to have an individual sit and track residents and bags. It is noted that the Federal Emergency Management Agency (FEMA) will only reimburse those items for public property. Thus, these types of items are not eligible for reimbursement and would need to be covered by the City. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 As part of the reimbursement puzzle for sandbags and other materials and labor, FEMA mandates that any inter - agency purchases /material supplies that are to be reimbursed by FEMA are required to fall under a cooperative agreement or mutual aid agreement that must be in place, prior to the incident. The Lake Area Cities do not have such an agreement. The question has been asked by staff if the current 1PA with police and fire might satisfy the FEMA requirements. This is still under research, at this time. Financial Considerations: Staff is seeking direction from the City Council as to how you would like to proceed. k,\ ;\ �l City of Shorewood Council Meeting Item Title / Subject: Monthly Budget Report Meeting Date: June 23, 2014 This item will be delivered under separate cover. #12A.1 MEETING TYPE Regular Meeting Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD 5755 Country Club Road • Shorewood, Minnesota 55331 • 952- 474 -3236 Fax: 952- 474 -0128 • www.ci.shorewood.mmus • cityhall @ci.shorewood.mn.us Re: Trail Schedule Update — Galpin Lake Road and Smithtown Road (East) Prepared by Paul Hornby and Brad Nielsen Galpin Lake Road Walkway Schedule 0 Planning Commission recommendation to Council re trail segment for following year 0 Council authorizes preparation of survey and Feasibility Report 0 Survey (30 days) — May 0 Feasibility Report (30 days) — June 0 Planning Commission review of feasibility report and trail walk — July 0 Planning Commission recommendation to Council re Feasibility Report 0 Council approves Feasibility Report 0 Planning Commission holds Neighborhood Meeting (Open House) 0 Council award of land acquisition services and authorizes preparation of Plans and Specifications ❑ Preparation of Plans and Specifications (90 days) ■ 95% Complete submittal to MnDOT 6/06/14 ■ MnDOT Review Complete 7/07/14 ■ CC Authorization to Advertise for bids 7/14/14 ■ Open Bids 8/07/14 ■ CC consideration of Award 8/11/14 ❑ Land Acquisition Process (start approx. mid -way through plans and specs) • Land Acquisition process not required due to design modifications • Individual temporary easements or rights of entry may be required • Reduces project schedule ❑ Neighborhood preconstruction meeting 8/18/14 ❑ City possession of easements /letter of compliance N/A ❑ Groundbreaking Ceremony 8/25/14 ❑ Begin Construction 8/25/14 ❑ Construction substantially complete — Phase 1 Construction 10/31/14 ❑ Construction substantially complete — Phase 2 Construction 7/31/15 ❑ Ribbon Cutting Ceremony 8/10/15 ❑ Restoration complete 7/31/15 Trail Schedule Update — Galpin Lake Road and Smithtown Road (East) Page 2 Smithtown Road East (LRT Trail to Country Club Road) Walkway Schedule ❑ Planning Commission recommendation to Council re trail segment for following year 6/03/14 ❑ Council authorizes preparation of survey and Feasibility Report 6/23/14 ❑ Survey (30 days) — 6/30/14 — 7/25/14 ❑ Feasibility Report (30 days) — 7/01/14 — 8/22/14 ❑ Planning Commission review of feasibility report and trail walk — 9/02/14 ❑ Planning Commission recommendation to Council re Feasibility Report 9/02/14 ❑ Council approves Feasibility Report 9/08/14 ❑ Planning Commission holds Neighborhood Meeting (Open House) 9/30/14 ❑ Council award of land acquisition services and authorizes preparation of Plans 10/13/14 and Specifications ❑ Preparation of Plans and Specifications (90 -120 days) 10/13/14— 2/13/15 ❑ Land Acquisition Process (start approx. mid -way through plans and specs) 9/03/14 — 7/06/15 o Complete parcel descriptions and legal descriptions o Review proposed easements with staff/attorney o Letters to property owners regarding survey staking o Field stake proposed easements for Appraiser /RW Agent o Easement viewing — parcel owner and RW Agent on -site o Appraisal information o Appraisal review o Council considers resolution to authorize staff to make offers and eminent domain schedule o Prepare and deliver offers to parcel owners ❑ Neighborhood informational meeting (Open House) ❑ Begin eminent domain action ❑ Council approves Plans and Specifications and authorizes ad for Bids ❑ Receive bids for construction ❑ City possession of easements /letter of compliance ❑ Council awards Construction Contract ❑ Neighborhood preconstruction meeting ❑ Groundbreaking Ceremony ❑ Begin Construction ❑ Construction substantially complete ❑ Ribbon Cutting Ceremony ❑ Restoration complete 5/19/15 2/09/15 5/25/15 6/08/15 6/22/15 6/22/15 6/30/15 6/30/15 7/06/15 10/15/15 10/31/15 11/15/15