110705 CC WS AgP
, " :,\, " ' ,
ClTVOIaOltEWOOD
CITY~OVNClL WOK siSSION
MONDAY, NOVEMBER 7,2005
5755 COUNTJlY'CLUBltOAD
C()tJNca~ ' ,
6:15 r.M. otllDme6ltelyFollowlng
Spedal Connell meeting
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Love _
Lizee
Turgeon _
Callies
, Wellens
B.
Review A.genda
2.
BENEfITS COM.Ml1"fU UCOMMENDATIONS (Att, - City
, memorandum) ,
j:~R1SlrBl.JDGEts (Att.* Finance Directof~s memorandum)
4. TIMBER LANE WATERMAIN (Art. - Director of Public Works' memorandum of October
20~20(5)
ADJOURN
"
.
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236
FAX (952) 474-0128. www.cLshorewood.mn.us. cityhall@cLshorewood.mn.us
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Council
Craig W. Dawson, City Administrator
October 2005
Report and Recommendations of Benefits Committee
Summary: A staff committee on benefits was formed in March 2005 with the goals of improving
communication to employees regarding benefits and expanding staff participation in the design of
benefits offered by the City. Committee members represented every department and all levels of the
City organization. During this process, committee members gained an appreciation of the complexity
and interrelated nature of their benefits. The Committee's report and recommendations follow.
Broad Focus for the Committee: The purposes for the Benefits Committee were to:
. Identify a better process for communication of insurance benefits offered by the City
. Provide opportunities for employees to have a significant voice in the type and extent of
benefits, and changes to them
. Understand the scope of insurance offered by the City, and the history of their being offered
and changes over time
. Become familiar with recent trends in insurance practices and legislation
. Review other benefits (education, wellness, sick leave cap, vacation)
. Recommend improvements to system of benefits
As the Committee progressed on its work, there was agreement that it should become a standing staff
committee. It is expected that the Committee will convene each year in April, review and make
recommendations on benefits by June in order to fit in the budget preparation schedule, and be active
again in the latter September through December timeframe as pricing and enrollment become
available.
Committee Research: The Committee began with a review of current benefits and recent changes
affecting them.
. Insurance Benefits
o The City currently offers a package of 5 types of insurance -medical, dental, life, long-
term disability (LTD), short-term disability (STD)
n
'..J PRINTED ON RECYCLED PAPER
-#~
rl
Benefits Committee Report; Recommended Changes
October 2005
Page 2
o For medical insurance, City left LOGIS consortium (a large group), and arranged for
insurance on its own (a small group) in 2003. The City group was less of a risk than
LOGIS, and resulted in no increase in premiums during the year the change was made.
Subsequent rate reviews show the City's increases to be less than LOGIS's annual
increases. Medical insurance is purchased from Medica, and has been for several
years.
o Dental insurance is arranged by the City for non-Union employees. It was provided by
MetLife through August 2005, and then changed to Delta Dental due to more favorable
rates for single and family coverage. Union employees have a flat-rate plan arranged
by AFSCME with Delta Dental.
o The life insurance benefit was enhanced for 2005, changing from $10,000 to lxSalary.
This improvement was able to be offered within the benefits budget for 2005, but some
employees stated they were negatively affected. Supplemental life insurance with the
provider required participation by 50 percent of employees. This level of participation
was not achieved, and not effectively communicated to employees wanting or needing
to have additional life insurance.
o Long-term disability (LTD) and short-term disability (STD) insurances were
authorized by the Council in the 1990s. As they currently are employer-paid
insurances, these benefits are taxable ifthe coverage is used.
o The City's contribution for the insurance package is up to a maximum of $680/month
per employee. This figure is estimated and derived based on two-thirds the cost of the
average family medical premium and the averages of other insurances. (Estimates are
made during budget preparation.) Employees without dependent coverage have
insurance paid up to $680, but typically is a few hundred dollars less. Ofthe
employees with insurance through the City, 13 have single coverage and 11 have
dep~ndent coverage.
o The City has an IRS Section 125 "Flexible Cafeteria Benefit Plan" to provide
reimbursement of many health-related costs with pre-tax dollars. Employees may opt
to participate, and need to declare at the beginning of the year how much money they
want taken from their paychecks and placed in the 125 Plan for the pre-tax status.
Funds may not be carried forth into the next year-it's a use-it-or-Iose-it plan.
"Cafeteria" here does not have the common meaning of a "cafeteria plan" for
insurances, and is misleading.
o With the exception of dental, City and Union insurance benefits are the same.
Other Benefits
o The City offers an education reimbursement benefit. This policy was reviewed and
Committee-recommended were approved by City Council this summer. The cap was
set at $3,000 annually.
o The City's sick leave accrual is consistent with the vast majority of public employers
(according to the DRI/Stanton Survey in Minnesota). Most public employers convert a
percentage of sick leave at time of termination to a severance benefit. The City's sick
leave severance is not friendly to employees (payout of one-third of hours in excess of
400), or to the employer (because it is not capped, it is an open-ended liability).
o The Stanton Survey shows City's vacation schedule is consistent with most ofthe
cities reporting. There is an inconsistency in City and Union vacation schedules - the
City's tops out at 25 years, AFSCME contract adds another week at 30 years.
Benefits Committee Report; Recommended Changes
October 2005
Page 3
o The City's number of holidays - 12 - is consistent with other local governments'.
o Committee members noted the absence of benefits to promote or reward wellness, and
desire to have some type ofwellness benefit plan put in place.
Health Insurance Alternatives
Several years ago, employers were able to offer choices of health insurance providers to their
employees. With competition and consolidation in the health insurance industry, employers-
particularly smaller ones-are able to offer insurance plans through one provider. When with LOGIS
and since separating from it, the City has provided health insurance through Medica. Employees
have expressed a desire for continuity in their relationships with medical providers. Medica has
remained competitively priced, the City has maintained Medica for its employees.
The Committee met separately with benefits attorneys made available through the League of
Minnesota Cities, and with representatives of Medica. Recent changes have been made possible
through federal legislation, and health savings accounts (HSAs) have had perhaps the most attention.
Employees would be affected with significant differences ifthe City were to change the design of
health insurance offered.
o Health Savings Accounts (HSAs)
. These plans with varying deductibles are starting to be offered by employers,
but would require 100% participation (i.e., no choice) for employees
. Medica is not currently offering a conventional plan and an HSA option
at this time, especially for small groups.
. HSAs are portable for employees. Employees need to select third-party
trustees for claims/investments in their HSAs, and this feature provides
portability as they change employers.
. The Section 125 Plan offered would need to be scaled back to dental &
vision only.
o Health Retirement Arrangements (HRAs)
· This is a self-insurance plan offered by employers
. Individual employee accounts are funded by employer contributions
o Some contributions may be made in the form of converted value
of sick or vacation leave, but conversion would be required for
all employees.
. They are not portable - employee's account stays with employer, and
can be used only for medical expenses.
. Section 125 Plan would not need to be changed.
. Claims administered by employer or contracted 3rd party.
o Continue with current offerings through Medica
. Medica representatives indicated that plans offered could have a somewhat
wider spread in cost ofthe two options it can provide. Committee members
believed a lower-premium option than what is currently available should be
provided.
Benefits Committee Report; Recommended Changes
October 2005
Page 4
While HSAs and HRAs are attractive alternatives for some employees, most employees would not
realize benefits compared to the current arrangement with the City. As HSAs and HRAs currently
require 100 percent participation, they would not benefit most of the City's employees. Management
should monitor HSAs ifhealth insurance providers provide them as an option for employees to
choose in the plans they offer.
Other Insurances
. Dental Insurance
o Changed from MetLife to Delta Dental on September 1, 2005.
o Employees want to have orthodontia covered in dental insurance
o AFSCME contract has flat rate to each member, regardless of single/dependent status,
but does not include orthodontia.
o Employees want to move the renewal date to occur at same time as health insurance.
For non-AFSCME employees, this change will be accomplished by purchasing Delta
Dental insurance from September through December 2006 at Delta Dental's rates then
in effect.
. Long-term Disabilitv (LTD)
o This was added as an employer-paid benefit at initiative of City Council with the 2001
budget year. The benefit begins after a 90-day qualification period.
· As it is currently an employer-paid benefit, the L TD payouts to employees are
taxable. Ifpremium were paid by employees, benefit payments would be tax-
free.
· The employer could pay an employee for the amount ofthe premium and then
use payroll deduction to pay the provider; however, the employee would be
then be paying a payroll tax for the benefit.
o L TD is highly desired by employees.
. Life Insurance
o Committee members prefer a basic benefit.
· Prior to 2005, the City offered a $10,000 policy for many years. This amount
should be increased to $20,000.
· Employees prefer to have the option to purchase additional insurance through
City provider, and need clear information if/when this is not possible
o Life insurance typically is the lowest-cost benefit to an employer.
. Short-term Disability (STD)
o This insurance was added at initiative of City Council in the early 1990s. It is "gap"
insurance to be available after exhausting sick and vacation leave prior to qualification
for L TD
Benefits Committee Report; Recommended Changes
October 2005
Page 5
o It is definitely a benefit to employees with less than 520:!: of sick leave on balance.
There is a mix of opinions on whether it's a benefit for those employees who have
more in their sick leave balance than that amount.
City's benefits appear to be very competitive with others in Stanton grouping. Some attempt was
made in the Committee process to compare benefits (unscientifically) with those offered by private
firms, but sample was very small and therefore not meaningful.
A Cafeteria Plan would make employer dollars available for employees to choose the types of
insurance and extent of coverage they wished to have. Many cities offering these plans have "core"
benefits, which employees are required to purchase these types of insurance.
. Best premium rates are obtained through group rates - typically requiring 100% participation
(or close to it). This is why some cities require "core" benefits.
. The City is a too-small employer to offer an economical cafeteria plan.
. The Benefits Committee prefers that insurance - and STD in particular -quotes be requested
for optional participation, so that elements of the sense of a cafeteria plan could be possible.
Other Benefits
. Vacation
o The City vacation schedule starts with 12 days off, and increase to 15 days after five
years, to 20 days at the beginning of the 10th year, and25 days at the beginning of the
20th year. The AFSCME contract provides for 30 days of vacation at the beginning of
their 30th year of employment with the City. Employee may carry a maximum balance
of twice their annual accrual from year to year.. These schedules are comparable to
other cities' .
. Holidavs
o The City provides 12 holidays - 10 full days, two half-days, and one personal day.
This amount of holidays is comparable to other cities'.
. Sick Leave
o The City provides 12 days of sick leave (one day/month). Employees may convert a
portion oftheir sick leave to a severance benefit upon termination of employment
(described in further detail below).
o Two components should be incorporated into the sick leave (or what could become a
"wellness leave" program:
· Development of a "wellness reimbursement benefit". Defined eligible
activities-e.g., 8 trips/month to a health club; smoking cessation;
weight/nutrition programs-would be reimbursed up to $40/month, and
deduction of 1 hour of sick leave for each $20 or portion thereof.
Benefits Committee Report; Recommended Changes
October 2005
Page 6
· A cap on sick leave balance should be established, and changes made to sick
leave severance (i.e., partial payout at termination of employment).
. The current City plan is not very friendly either to the employee or the
employer.
o It has no cap on the number of hours that an employee has on
balance. (This is an open-ended liability for the employer.)
o It pays the employee 1/3 ofthe balance of hours over 400 that
he/she has at termination. (This does not encourage judicious
use of sick leave.)
. Recommended plan
o Cap the balance of sick leave hours at 800. (Such a cap limits
the City's liability. This amount can be attained in a minimum
8.3 years, or after 10 years if one averages 2 sick days per year.)
o Pay 50 percent of sick leave hours on balance at termination
with a minimum of five years' employment. (This rewards
employee loyalty and is easy to understand and administer.)
o Take number of hours in excess of 800 at end of every year and
convert 50% to other benefit (deferred compensation, add to
vacation balance, place in next year's Section 125 Plan account,
payout as cash, use in combinations, etc.)
o Payout to those currently in excess of 800-hour maximum on
December 31,2005, with one-time use of City's fund balance.
Three employees would be affected, and the City's payout to
them would be approximately $60,000.
Improvements to Benefits Communication Process
The Benefits Committee gained a lot of knowledge and understanding about the City's benefits plan
and offerings, as well as changes that are occurring in the insurance industry that affect both
employers and employees. Benefits are interrelated. Individual benefits and benefit packages can be
difficult to understand. As an initiative to improve and enhance communication to employees about
benefits and the benefit process, Committee members recommend that
. The Benefits Committee remains as a "standing committee". It would
o Convene in Spring every year, review benefits, identify changes to research, identify
recommended changes to place in budget process in July; and
o Have Committee members be information liaisons to their departments and help
communicate benefits information.
. In September, staff be notified of upcoming enrollment period that starts in early November,
and be provided any preliminary indication of changes in costs and/or extent of coverage.
. After quotes from providers are received around November 1, process individual information
for employees as quickly as possible.
Benefits Committee Report; Recommended Changes
October 2005
Page 7
Recommendation:
The Benefits Committee recommends that the Council approve and authorize development of
detailed plans for changes in the City's benefits as proposed.
Benefits Committee:
Craig Dawson Administration
Pat Fasching Admin/Deputy Clerk
Larry Brown Engineering
Bonnie Burton Finance
Jim Eischens, Liquor
Brad Nielsen Planning
Patti Helgesen ( alternate)
Dan Randall Public Works
Jean Panchyshyn
Recorder
.
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD · SHOREWOOD, MINNESOTA 55331.8927 · (952) 474-3236
FAX (952) 474-0128 · www.cLshorewood.mn.us. cityhall@cLshorewood,mn,us
MEMORANDUM
DATE:
November 3,2005
FROM:
,..
Honorable Mayor and City counCi1membe~r
, ' ,~
Bonnie B urton, Finance Directorffreasurer
TO:
CC:
Enterprise Fund Budget Workshop:
Work-session, Monday November 7, 2005
Craig W. Dawson, City Administrator c.b
RE:
Attached for your review are Year 2006 budget' drafts for the City's Enterprise Funds. These
documents will be discussed at the work session on Monday night. The documents consist of
budgets for the Water Operations and Water Debt Service, Sanitary Sewer Fund, Stormwater
Management, and Recycling Funds, and Liquor Operations
In order for the Water Funds to be self-supporting, to assure the system can provide for
improvements, and to preserve fund balance at current levels, ,a three-year step approach to water
rate increases was discussed and approved by the Council several years ago.
,,~ r,
.J4"" ....,
I, ..J
fir>
~ ,~ PRINTED ON RECYCLED PAPER
at1 1
2006 Enterprise Budget Memo
Page 2 of 3
Based on that plan, the current rates are: $35 for up to 10,000 gallons; $2.95/1000 gallons for
10,000-50,000 gallons usage; and $3.75/1000 gallons for 50,000 + gallons usage. There are
currently approximately 1,225 water connections that use an average of 30,000 gallons per
quarter. The 2006 budget includes $8,000 for possible feasibility studies.
Sanitary Sewer Budget
The City currently has about 2,800 connections to its Sanitary Sewer System.. The Sanitary
Sewer Fund has a substantial fund balance that has enabled it to be used to fund projects such as
the Gideon Glen land acquisition. This loan is being repaid on schedule from the Stormwater
Management Fund. Proposed operating revenues and expenditures for year 2006 are
contemplated at approximately $890,000. In addition, capital improvements of approximately
$192,000 are planned. Capital improvements for year 2006 include refurbishment of two (2) Lift
Stations.
In addition, funds have also been designated for Inflow & Infiltration Control and Reduction
projects ($50,000). The City has been notified of an I & I surcharge program that the MCES
intends to implement starting in 2007. Staff will meet with MCES representatives on Monday
and will have additional information for the Council at the work-session. At this point, it appears
the City will have to do some substantial I & I mitigation or face large surcharge payments
starting in 2007. Rate adjustments will likely be necessary.
Storm water Management Budget
The 2005 Stormwater Management Budget draft contemplates revenues and expenditures of
about $379,000. This includes operations and debt service payments for the Gideon Glen land
acquisition. Capital improvement projects anti.cipated include the MCWD's Gideon Glen
Drainage Project ($183,300), to which the City is contributing $70,000 in grant funds from the
Metropolitan Council; and the Glen Road Drainage Improvement project. The Council will
recall that a small increase in rates was implemented for 2003. Staff is not recommending any
additional rate increases at this time.
Recycling Budget
The Recycling Budget draft contemplates revenues and expenditures of about $117,220. The
City anticipates again receiving approximately $21,000 from Hennepin County Grant Funds.'
We note that the number of households participating in the recycling program remains stable at
about 1,100 households per month. Staff does not recommend any additional rate increases at
this time.
Liquor Operations
The City optimistically anticipates reasonable profit levels at its two current operating municipal
stores. However, the 2006 budget has been prepared very conservatively. Liquor Operations
Manager Don Swandby has said that his emphasis will continue to be on additional promotion
2
2006 Enterprise Budget Memo
Page 3 of 3
and advertising to increase sales. The newly created Shorewood Wine Club is an example of
such efforts. The Waterford (East) store is forecasted to show a small operating profit for 2006.
Improvements that are programmed for 2006 include new countertops at the check-out area,
painting, and possible new floor-covering. The Shorewood Plaza (West) store continues to show
profitability and the 2006 budgets reflect this. The Liquor Committee has reviewed the Liquor
Operations budgets and recommends approval of the budgets by the City Council.
Conclusion
. We invite your response and comments on the Enterprise Budgets. Please advise if you would
like additional information or if we can be of further assistance prior to the work-session.
3
CITY OF SHOREWOOD,
MINNESOTA
2006 WATER BUDGET
November 3,2005
5
SUBFUND: Water Debt Service
MISSION:
To provide for the retirement of
debt incurred to construct water
system improvements.
FUND: Water
FUND NO: 601
DESCRIPTION OF ACTIVITI:
Responsible for the accumulation of resources for the retirement of Water Fund debt, and
for the periodic payment of principal and interest.
OBJECTIVES:
To assure adequate resources to retire debt as scheduled, or more quickly if prudent.
HIGHLIGHTS/COMMENTS:
Revenues:
Property Tax Levy for Debt Service
Special Assessments on Water Improvements
Connection Charges
Interest Income
Transfers from Water Operating Fund
Expenses:
Staffing:
Supplies/Materials:
Support Services:
Charges & Fees:
Capital Outlay:
Other:
Debt service payments - Principal and interest
Fiscal Agent Fees
6
FUND: #601 DEPT # 49400
BUDGET Actual Actual Budget YTD Sept Proposed Adopted
ITEM 2003 2004 2005 2005 2006 2006
REVENUE
Sp Assess/Connect Chgs 41,360 57,345 45,000 55,573 45,000 0
Misc. Revenue 22,206 28,049 35,000 22,468 30,000 0
Transfers 150,000 230,000 280,000 0 373,000 0
TOTAL REVENUE 213,566 315,394 360,000 78,041 448,000 0
EXPENSES
Staffing 0 0 0 0 0 0
Supplies/Materials 0 0 0 0 0 0
Support Services 0 0 0 0 0 0
Charges & Fees 0 0 0 0 0 0
Other. Debt Service 101,438 282,877 355,904 197,310 375,000 0
Capital Outlay 0 0 0 0 0 0
Transfers 0 0 0 0 0 0
TOTAL EXPENSES 101,438 282,877 355,904 197,310 375,000 0
SERVICE INDICATORS:
Outstanding Debt, Year End 1,730,000 1,730,000 1,545,000 1,545.000 2,610,000 2,610,000
CASH FLOW IMPACT:
Beginning Cash Balance .
466,388 578,516 611,032 611,032 615,128 615,128
Revenues
213,566 315,394 360,000 78,041 448,000 0
Expenditures
(101,438) (282,877) (355,904) (197,310) (375,000) 0
Ending Cash Balance
578,516 611,032 615,128 491,763 688,128 615,128
STAFFING:
7
SUBFUND:
Water Operations
MISSION:
To provide a safe, clean, uninterrupted
supply of drinking water to all City
residents connected to the City water system.
FUND:
Water
FUND NO: 601
DESCRIPTION OF ACTIVITY:
Responsible for operation and maintenance of seven (7) well systems, including all
pumps and wellhouses, maintenence of water tower and treatment plant, and
extension of new watermain and construction of new water facilities, as necessary.
OBJECTIVES:
. Supply a safe, clean uninterrupted source of water to all connections
_ Explore possibility of interconnecting with other communities
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated water sales based on quarterly billing at a tiered rate of $2.95 - $3.75/1,000 gallons
Connection and permit revenues
Miscellaneous Income includes interest income and Cellular Antenna Space Rentals
Water Revenue Bonds issued in 2005
Expenses:
Staffing:
.10 Senior Accounting Clerk
.125 Receptionist/Secretary
.25 Utility Lead Person
1.15 Utility Operator
Supplies/Materials:
Office Supplies, including billing forms and postage
Maintenance contracts for computer hardware and software
Maintenance of gate valves
Small tools and chemicals for water treatment
Support Services & Charges:
Engineering
Water Operations Licenses & Training
Insurance on water system
Water testing & Water Quality Reporting
Water system analysis
Capital Outlay:
Amesbury Polyphosphate System ($12,100 - 2006)
Amesbury Well control Replacement ($75,000 - 2006)
Woodhaven Well Inter-Connection with Chanhassen ($174,500 - 2006)
Boulder Bridge Submersable Well- Pull & Inspect ($21,000 - 2006)
Radio Read Meter project-($21 0,000 - 2006)
Interconnect of Amesbury & SE Area Wells ($626,400 - 2006)
Other:
Water Purchased from other communities
Meter purchases
Well utility charges
Transfers to Water Debt Service Fund
Depreciation (Non-cash expense accounts for future system replacement)
8
FUND: #601 DEPT # 49400
BUDGET Actual Actual Budget YTD Sept Proposed Adopted $$ %
ITEM 2003 2004 2005 2005 2006 2006 Change Change
REVENUE
Charges for Service 447,867 508,037 467,200 217,160 516,000 0 48,800 10.45%
Bond Proceeds 0 0 1,200,000 1,473,300 0 0 (1,200,000) .100.00%
Misc. Revenue 71,193 82,855 71,000 58,390 71,000 0 0 0.00%
TOTAL REVENUE 519,061 590,891 1,738,200 1,748,850 587,000 0 (1,151,200) -66.23%
EXPENSES
Staffing 70,964 75,789 98,699 47,206 100,487 0 1,788 1.81%
supplieslMaterials 47,591 90,785 51,825 37,673 56,925 0 5,100 9.84%
Support Services & Charges 74,132 147,937 103,900 176,116 126,200 0 22,300 21.46%
Capital Outlay 0 0 1,077,600 6,200 1,119,000 0 41,400 3.84%
Transfers 110,000 230,000 280,000 0 373,000 0 93,000 33.21 %
Depreciation 181,113 184,468 190,000 122,374 185,000 0 (5,000) -2.63%
TOTAL EXPENSES 483,800 728,978 1,802,024 389,570 1,960,612 0 158,588 8.80%
SERVICE INDICATORS:
Miles of Water Line 16 16 16 16 16 16
No. of Connections 1,120 1,120 1,120 1,172 1,225 1,225
No. of Hydrants 222 222 222 222 222 222
Avg Daily Consump- gals 430,000 430,000 430,000 430,000 430,000 430,000
Water rate/1000 gals 1.95/2.75 2.95/3.75 2.95/3.75 2.95/3.75 2.95/3.75 2.95/3.75
CASH FLOW IMPACT:
Beginning Cash Balance 767,463 1,787,809 1,855,878 1,855,878 1,982,054 1,982,054
Revenues 519,061 590,891 1,738,200 1,748,850 587,000 0
Expenditures (483,800) (728,978) (1,802,024) (389,570) (1,960,612) 0
Depreciation 181,113 184,468 190,000 122,374 185,000 0
Construction of Infrastructure
Other Cash Flow Impacts 803,973 0 0 0 1,200,000 1
Ending Cash Balance 1,787,809 1,855,878 1 ,982,054 3,337,532 1,993,442 1,982,055
STAFFING:
Lt. Equip. Oper. .30 .30 ..30 .30 1.15 1.15
Engineer. Tech. .25 .25 .25 .25 .25 .25
Acctg. Clerk .125 .125
Sec.lRecep. .10 .10 .10 .10 .05 .05
9
CITY OF SHOREWOOD,
MINNESOTA
2006 SANITARY SEWER BUDGET
November 3, 2005
11
SUBFUND:
DEPT NO:
Sanitary Sewer
611
MISSION:
To provide a safe, sanitary sewer
service to all City residents
FUND:
Sanitary Sewer
DESCRIPTION OF ACTIVITY:
Major activities include maintenance of fourteen (14) lift stations, and cleaning,
televising and repairing sewer mains to control inflow and infiltration. Sewage
treatment is performed by Metropolitan Council Environmental Services (MCES) and is
provided for in this area.
OBJECTIVES:
- Work with MCES to correct inflow and infiltration into the sanitary sewer system
. Work with MCES to reduce sewage treatment costs to the City
- Refurbish two lift stations per year
HIGHLIGHTS/COMMENTS:
Revenues:
Quarterly Sewer service charges at $70.00 per quarter
Interest revenue from investment of Sewer Fund cash balances
Other permit and connection fee revenues estimated based on 15 new homes
Repayment of Interfund Loan from Stormwater Management Fund for purchase of Gideon Glen land
Expenses:
Staffing:
.10 Senior Accounting Clerk
.125 Receptionist/Secretary
.25 Utility Lead Person
1.15 Utility Operator
Supplies/Materials:
Office Supplies. including billing forms and postage
Maintenance contracts for computer hardware and software
Support Services:
Sewer Main Cleaning
Inflow & Infiltration Control
Insurance on sewer system
Legal & engineering services
Utilities
Travel & seminars
Charges & Fees:
Charges for sewage flow into City of Excelsior trunk mains
Metropolitan Council Environmental Services sewage treatment charges
Capital Outlay:
Refurbish Lift Stations 16 & 17 (2006)
Inflow & Infiltration Reduction
Transfers:
Debt Service Payment From Interfund Loan to Stormwater Fund- Gideon Glen 2000
Depreciation (Non-cash expense accounts for future system replacement)
12
FUND: # 611 DEPT # 49450
BUDGET Actual Actual Budget YTD Sept Proposed Adopted $$ %
ITEM 2003 2004 2005 2005 2006 2006 Change Change
REVENUE
Charges for Service 891,804 937,304 840,500 477,888 890,000 0 49,500 5.89%
Transfers 0 0 33,000 0 44,400 0 11 ,400 34.55%
TOTAL REVENUES 891,804 937,304 873,500 477,888 934,400 0 60,900 6.97%
EXPENSES
Staffing 52,467 63,542 1 03,199 49,015 104,487 0 1,288 1.25%
Supplies/Materials 11,914 22,318 16,750 5,962 19,350 0 2,600 15.52%
Support Services & Charges 488,462 446,226 473,310 521,959 524,900 0 51,590 10.90%
Capital Outlay 0 0 246,900 0 192,000 0 (54,900) -22.24%
Transfers 0 0 0 0 0 0 0 0.00%
Depreciation 203,538 203,394 205,000 153,051 205,000 0 0 0.00%
TOTAL EXPENSES 756,381 735,480 1,045,159 729,987 1,045,737 0 578 0.06%
SERVICE INDICATORS:
Miles of Sewer Line 57 57 57 65 65 65
No. of Connections 2,705 2,773 2,773 2,773 2,800 2,800
No. of Lift Stations 16 16 16 16 16 16
Sewer Charge 60.00 70.00 70.00 70.00 70.00 70.00
CASH FLOW IMPACT:
Beginning Cash Balance 2,823,305 3,104,580 3,548,050 3,548,050 3,548,391 3,548,391
Revenues 891,804 937,304 840,500 477,888 890,000 0
Expenditures (756,381 ) (735,480) (1,045,159) (729,987) (1,045,737) 0
Depreciation 203,538 203,394 205,000 153,051 205,000 0
Other Cash Flow Impacts (57,685) 38,252
Ending Cash Balance 3,104,580 3,548,050 3,548,391 3,449,001 3,597,654 3,548,391
STAFFING:
Sr. Acctg. Clerk .10 .10 .10 .10 .125 .125
Acctg. Clerk .20 .20 .20 .10 .10
Utility Operator/Utility lead .20 1.10 1.10 1.10 1.10 1.10
Receptionist/Secretary .10 .05 .05 .05 .05 .05
Engineer. Technician .25 .25 .25 .25 .25
13
CITY OF SHOREWOOD,
MINNESOTA
2006 RECYCLING BUDGET
November 3, 2005
15
SUBFUND:
Recycling
MISSION:
To provide weekly pickup of recyclables
to all City residents; provide for the annual
pickup of household and yard wastes
FUND:
Recycling
FUNDNO: 621
DESCRIPTION OF ACTIVITY:
Weekly pick-up of newspaper, corrugated cardboard, recyclable plastics, glass and
metal, and other recyclable materials. Includes annual City curbside pickup of large household
items and brush, and operation of an annual brush/leaf composting drop-off site.
OBJECTIVES:
- Continue weekly pickup of recyclable materials
_ Hold curbside pickup of household and yard wastes in the Spring of the year
- Provide a leaf and yard waste disposal site in Fall of the year
HIGHLIGHTS/COMMENTS:
Revenues:
County Aid is a Hennepin County grant
Charges for Service includes City Clean-up fees and a
City Recycling Fee of $1.75 per month per household
Tranfers/other includes transfers, interest income and revenue sharing from the Recycling Contractor
Expenses:
Staffing:
Miscellaneous staffing for City Clean-up and Yardwaste Disposal
Supplies/Materials:
Office Supplies
Support Services:
Recycling contract with E-Z Recycling - $2.35/householdlmonth for 2,720 households
City Clean-up costs
16
FUND: #621 FUND: Recycling DEPT # 49550
BUDGET Actual Actual Budget YTD Sept Proposed Adopted $$ %
ITEM 2003 2004 2005 2005 2006 2006 Change Change
REVENUE
County Aid 21,460 21 ,160 21 ,500 8 21,022 0 (478) -2.22%
Charges for Service 98,064 93,355 94,020 59,240 95,700 0 1,680 1.79%
Transfers/other 1,138 1,328 1,700 1,242 1,600 0 (100) -5.88%
TOTAL REVENUE & 120,662 115,843 117,220 60,491 118,322 0 1,102 0.94%
OTHER SOURCES
EXPENSES
Staffing 590 0 1,801 0 1,747 0 (54) -3.00%
SupplieslMaterials 990 0 1,000 2,328 2,350 0 1,350 135.00%
Support Services & Charges 114,980 106,933 114,419 77,600 114,225 0 (194) -0.17%
Capital Outlay 0 0 0 0 0 0 0 0.00%
Transfers 0 0 0 0 0 0 0 0.00%
TOTAL EXPENSES 116,560 106,933 117,220 79,928 118,322 0 . 1,102 0.94%
SERVICE INDICATORS:
Avg. mo. Participant Hshlds. 1,100 1,100 1,100 1,100 1,100 1,100
Avg. mo. Tonnage 70 70 70 70 70 70
CASH FLOW IMPACT:
Beginning Cash Balance 37,785 43,763 51,760 51,760 51,760 51,760
Revenues 120,662 .115,843 117 ,220 60,491 . .118,322 0
Expenditures (116,560) (106,933) (117,220) (79,928) (118,322) 0
Other Cash Flow Impacts
Ending Cash Balance 43,763 51,760 51,760 32,323 51,760 51,760
STAFFING:
17
CITY OF SHOREWOOD,
MINNESOTA
2006 STORMWATER BUDGET
November 3, 2005
19
FUND:
Stormwater Management
SUB FUND:
Stormwater Management
FUND NO:
631
DESCRIPTION OF ACTIVITY:
Activities include maintenance of storm sewer system, including cleaning of catch basins,
dredging of drainage ditches and retention ponds, and minor repairs to system problem areas.
Provides partial funding for larger subwatershed drainage projects.
OBJECTIVES:
To build and maintain a stable fund balance in order to facilitate council priorities and projects.
HIGHLIGHTS/COMMENTS:
Revenues:
Stormwater Management Utility Charges
Misc. Revenue includes interest income and other misc. revenue (antenna)
Transfers from the General Fund
Expenses:
Staffing:
.10 Light Equipment Operator
.05 Senior Accounting Clerk
Supplies/Materials:
Drainage Correction/Maintenance Materials
Support Services:
Engineering
Contractual Services fordrainage correction ($15,000 - 2006)
Debt Service:
Repayment of Internal Loan to Sewer Fund for land purchase (Balance outstanding at end of 2005: $90,000)
Capital Outlay:
Glen Road Drainage Improvement ($25,000 - 2006)
Mise Stormwater Projects ($15,000 . 2006)
20
21
CITY OF SHOREWOOD,
MINNESOTA
2006 LIQUOR BUDGET
November 3, 2005
23
FUND NO:
640
M1SSI0N:
To control the sale and distribution of
packaged alcholic beverages within the
City and to provide property tax relief
the use of operation profits.
FUND:
Liquor (East & West)
SUBFUND:
DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
OBJECTIVES:
_ Effectively control the sale of packaged alcoholic beverages in the City
. Produce a reasonable net profit
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales for two stores.
Expenses:
Staffing:
1.00 Operations Manager
1.00 Assistant Managers
1.00 Full Time Clerks
.10 Senior Accounting Clerk
10.00 Part time Sales Clerks
Supplies/Materials:
Office Supplies, Bags, Postage
Services & Charges:
Finance and Auditing Services
General and Liquor Liability Insurance
Electric & Gas Utilities, and Refuse Hauling
Building Rental
Advertising
Credit Card Service Charges
Capitai Outlay: . Waterford Store - countertops, carpet, paint
Other Sources: Transfer in from Tanka Bay Store Reserves & Interest Income
Other Uses: Transfer to General Fund
24
25
FUND: # 640 SUBFUND: Liquor Operations (East & West) DEPT # 49750
BUDGET Actual Actual Budget YTD Sept Proposed Adopted $$ %
ITEM 2003 2004 2005 2005 2006 2006 Change Change
REVENUE
Sales 2,507,063 2,195,387 2,283,500 1,475,239 2,093,000 0 (190,500) -8.34%
Cost of Goods 1,829,854 1,608,759 1,678.740 1.036,322 1,535,363 0 (143.377) -8.54%
GROSS PROFIT 677,209 586,629 604.760 438,917 557,637 0 (47,123) -7.79%
EXPENSES
Staffing 302,702 255,867 281,267 170.078 257,808 0 (23,459) -8.34%
Supplies/Materials 11,325 10,011 7,150 7,100 7,600 0 450 6.29%
Services & Charges 232,728 225,179 222,820 184,847 232,470 0 9,650 4.33%
Depreciation 10,085 39,057 36,960 27,893 36,200 0 (760) -2.06%
Capital Outlay 40,000 4,286 21,500 0 4,000 0 (17,500) -81.40%
TOTAL EXPENSES 596,840 534,399 569,697 389,918 538.078 0 (31,619) -5.55%
TOTAL OPERATING INCOME (LOSS) 80,369 52,229 35,063 48,999 19,559 0 (15,504) -44.22%
Other Sources 10,680 8,521 20,000 9,214 32,400 0 12,400 62.00%
Other Uses 30,000 30,000 50.000 3,676 50,000 0 0 0.00%
NET INCOME (LOSS) AFTER TSFRS 61,048 30,751' 5,063 54,537 1,959 0 (3,104) -61.30%
SERVICE INDICATORS:
Gross Profit as a % of Sales 27.01% 26.72% 26.48% 29.75% 26.64% #D IV /O!
Oper. Income as a % of Sales 3.21% 2.38% 1.54% 3.32% 0.93% #DIV/Ol
CASH FLOW IMPACT:
Beginning Cash Balance 473,518 305,170 413,370 413,370 413,370 413,370
Net Operating Income/Loss 80,369 52,229 35,063 48,999 19,559 0
Depreciation 10,085 39,057 36,960 27,893 36,200 0
Other Cash Flow Impacts . (183,816) 0 .0 0 0 0
Ending Cash Balance $305,170 $413,370 $485,393 $490,263 $469,129 $413,370
STAFFING:
Full time:
Operations Manager 1.00 1.00 1.00 1.00 1.00 1.00
Assistant Manager 3.00 2.00 1.00 1.00 1.00 1.00
Full Time Clerk 1.00 1.00 1.00 1.00
Sr. Acctg. Clerk .15 .10 .10 .10 .10 .10
Part time:
Sales Clerks 15.00 15.00 10.00 10.00 10.00 10.00
26
FUND NO:
641
MISSION:
To control the sale and distribution of
packaged alcholic beverages within the
City and to provide property tax relief
the use of operation profits.
FUND:
Liquor
SUBFUND:
Shorewood Plaza (West)
DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
OBJECTIVES:
_ Effectively control the sale of packaged alcoholic beverages in the City
_ Provide a profit equal to at least 2% of sales for transfer to the General Fund
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales
Expenses:
Staffing:
.50 Operations Manager
1.00 Full Time Clerk II
6.00 Part time Sales Clerks
.05 Senior Accounting Clerk
Supplies/Materials:
Office Supplies, Postage, Equipment Repair, Bags
Services & Charges:
Finance and Auditing Services
Contractual Rug Service
General and Liquor Liability Insurance
Electric & Gas Utilities, and Refuse Hauling
Building Rentar
Advertising
Credit Card Service Charges
Capital Outlay:
Other SourceslUses:
Interest Income & Transfer to General Fund
27
FUND: # 641 SUBFUND: Liquor - Shorewood Plaza (West) DEPT # 49750
BUDGET Actual Actual Budget YTD Sept Proposed Adopted $$ %
ITEM 2003 2004 2005 2005 2006 2006 Change Change
REVENUE
Sales 931,324 1,337,872 1,370,000 850,953 1,210,000 0 (160,000) -11.68%
Cost of Goods 687,760 979,973 1,006,950 596,230 889,000 0 (117,950) -11.71%
GROSS PROFIT 243,564 357,898 363,050 254,723 321,000 0 (42,050) -11.58%
EXPENSES
Staffing 120,185 145,355 162,205 92,166 134,237 0 (27,968) -17.24%
Supplies/Materials 5,178 5,428 3,825 3,017 4,150 0 325 8.50%
Services & Charges 98,734 121,779 120,810 101,774 125,435 0 4,625 3.83%
Depreciation 9,777 33,905 33,573 25,207 33,000 0 (573) -1.71%
Capital Outlay 0 4,286 11 ,500 0 0 0 (11,500) -100.00%
TOTAL EXPENSES 233,874 310,753 331,913 222,164 296,822 0 (35,091 ) .10.57%
NET OPERATING INCOME (LOSS) 9,690 47,145 3',137 32,559 24,178 0 (6,959) -22.35%
Other Sources 15,000 5,631 15,000 7,087 6,400 0 (8,600) -57.33%
Other Uses 0 15,000 40,000 1,614 30,000 0 (10,000) -25.00%
NET INCOME/(LOSS) AFTER TSFRS 24,690 37,776 6,137 38,032 578 0 (5,559) -90.58%
BUSINESS INDICATORS:
Gross Profit as a % of Sales 26.15% 26.75% 26.50% 29.93% 26.53% #DIV/O!
Oper. Income as a % of Sales 1.04% 3.52% 2.27% 3.83% 2.00% #DIV/O!
CASH FLOW IMPACT:
Beginning Cash Balance 382,327 287,570 328,983 328,983 398,193 398,193
Net Operating Income/(Loss) 9,690 47,145 31,137 32,559 24,178 0
Depreciation 9,777 33,905 33,573 25,207 33,000 0
Other Cash Flow Impacts 4,500 (5,000) 4,500 4,500 (5,000) 0
Ending Cash Balance 227,993 328,983 398,193 391,248 450,311 398,193 .
STAFFING:
Full time:
Operations Manager .33 .50 .50 .50 .50 .50
Assistant Manager 1.00 .00 .00 .00 .00 .00
Full Time Clerk II 2.00 1.00 1.00 1.00 1.00 1.00
Sr. Acctg. Clerk .05 .05 .05 .05 .05 .05
Part time:
Sales Clerks 5.00 5.00 6.00 6.00 6.00 6.00
28
FUND NO:
642
MISSION:
To control the sale and distribution of
packaged alcholic beverages within the
City and to provide property tax relief
the use of operation profits.
FUND:
Liquor
SUBFUND:
Waterford (East)
DESCRIPTION OF ACTIVITY:
Provides for the sale of packaged alcoholic beverages to the general public.
OBJECTIVES:
. Effectively control the sale of packaged alcoholic beverages in the City
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated liquor sales
Expenses:
Staffing:
.50 Operations Manager
1.00 Assistant Manager
4.00 Part time Sales Clerks
.05 Senior Accounting Clerk
SupplieslMaterials:
Office Supplies, Postage, Equipment Repair, Bags
Services & Charges:
Finance and Auditing Services
Contractual Rug Service
General and Liquor Liability Insurance
Electric & Gas Utilities, and Refuse Hauling
Building Rental. reduced through reduction in floor space
Advertising
Credit Card Service Charges
Capital Outlay: Remodel
Other Sources:
Transfer in from Tonka Bay Store reserves/Interest income
Other Uses:
Transfer to General Fund
29
FUND: #= 642 SUBFUND: Liquor - Waterford (East) DEPT # 49750
BUDGET Actual Actual Budget YTD Sept Proposed Adopted $$ %
ITEM 2003 2004 2005 2005 2006 2006 Change Change
REVENUE
Sales 841,374 857,516 913,500 624,286 883,000 0 (30,500) -3.34%
Cost of Goods 615,141 628,785 671,790 440,092 646,363 0 (25,427) -3.79%
GROSS PROFIT 226.233 228,730 241,710 184,194 236,637 0 (5,073) -2.10%
EXPENSES
Staffing 113,378 113,883 119,062 77.912 123,571 0 4,509 3.79%
Supplies/Materials 2,959 4,583 3,325 4,082 3,450 0 125 3.76%
Support Services 93,491 103,490 102,010 83,136 107.035 0 5,025 4.93%
Depreciation 5,083 5,152 3,387 2,687 3.200 0 (187) -5.52%
Capital Outlay 0 0 10,000 0 4,000 0 (6,000) -60.00%
TOTAL EXPENSES 214.911 227.107 237,784 167,817 241 ,256 0 3,472 1.46%
TOTAL OPERATING INCOME (LOSS) 11 ,323 1,623 3,926 16.378 (4,619) 0 (8,545) -217.64%
Other Sources 0 113 5,000 2,127 26,000 0 21,000 420.00%
Other Uses 15.000 15,000 10,000 2,062 20,000 0 10,000 100.00%
NET INCOME (LOSS) (3.677) (13,264) (1,074) 16,443 1,381 0 2,455 -228.61%
BUSINESS INDICATORS:
Gross Profit as a % of Sales 26.89% 26.67% 26.46% 29.50% 26.80% #DIV/O!
Oper. Income as a % of Sales 1.35% 0.19% 0.43% 2.62% (0.52%} #DIV/O!
CASH FLOW IMPACT:
Beginning Cash Balance (167,065) (166,963) (162,426) (162,426) (152.113) (152.113)
Net Operating Income/(Loss) 11 .323 1,623 3,926 16,378 (4.619) 0
Depreciation 5,083 5,152 3,387 2,687 3,200 0
Other Cash Flow Impacts 3,000 3,000 3,000 3,000
Ending Cash Balance (166,963) (162,426) (152,113) (140,362) (153.532) (152,113)
STAFFING:
Full time:
Operations Manager .33 .50 .50 .50 .50 .50
Assistant Manager 1.00 1.0 1.0 1.0 1.0 1.0
Full Time Clerk
Sr. Acctg. Clerk .05 .05 .05 .05 .05 .05
Part time:
Sales Clerks 5.00 5.00 4.00 4.00 4.00 4.00
30
:
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236
FAX (952) 474-0128. www.cLshorewood.mn.us.cityhall@cLshorewood.mn.us
MEMORANDUM
TO:
- Mayor and City Council
Craig Dawson, City Administrator
FROM:
Larry Brown, Director of Public Works
DATE:
October 20, 2005
RE:
Resolution Accepting Letter Withdrawing Petition for Timber Lane Watermain
City Project 04-05
The City of Shorewood has been in._process of a project petitioned by the residents along Timber Lane,
for consideration of the extension of municipal water service along Timber Lane. Refer to Attachment 1.
This project was brought through a pUQlic bidding process, and rejected due to the high bid costs
received. It was the intent of staff thatthe project would be re-bid in conjunction with the proposed SE
Area - Amesbury Interconnect project currently under design. It was anticipated that the pricing would
be lower, due to the economies of scale of the larger project.
Attachment 2 is a letter dated October 6, 2005 from Mr. Steve Haskins, representative for the Timber
_ Lane neighborhood. Mr. Haskins is requesting that the petition be formally withdrawn, due to cost
concerns.
As Mr. Haskins has served as the representative of the group, and has copied all of the affected
petitioners, staff is recommending approval of the resolution that formally accepts the letter withdrawing
the petition for the Timber Lane Watermain Project.
It is worth mentioning th-at under the current policy, the petitioners would be responsible to satisfy any
and all costs for consideration of the feasibility and design portion of the proj ect. Staff will summarize
all of the costs at the City Council meeting on Monday evening. Based on the most recent indications
from the City Council, the Council may wish to consider whether or not the feasibility and design costs
are to be charged to the properties, or born by the City's municipal water fund.
Recommendation
Staff is recommending approval of the resolution withdrawing petition for the Timber Lane Watermain
Project.
q"
to., PRINTED ON RECYCLED PAPER
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, .
Mr. Larry Brown
Mr. Craig Dawson
October 6, 2005
RE: Timber Lane Water Petition
REC~'VED
OCT 11 Z005
City of Shorewood
Shorewood, MN 55331
Dear Mr. Brown and Dawson, C\TY OF SHOREWOOO
. We were advised that city water would cost an estimated $16,000 per house e ore it
went outto bid. The results were approximately 10,000 dollars higher. You are not
planning to release the new RFQ until the spring of next year (like this year), which is
after they have already released their bids for work for that year. This means that the bid
will be high because they are already committed for the year. We have evidence that
similar quotes in Mound were 20-21,000 per house. So we do not see the quote being
significantly lower.
With that in mind I have surveyed the street and we agree that city water is not an
economical solution at this time. Please cancel our request/appeal for city water at this
time. This is based on the facts above and our understanding that it would be around
16,000 per house, which is far from where we ended. It did not include the additional 4-
7000 for hookup to the house which was not mentioned by your office at first. If you
have any questions please give me a call at 952-474-1268.
~
even W. s
Cc: Duane Bagdon
Lucille Goodwin
Rich Tra4ewell
Peter Wattson
Don Erickson
Hans Schaub. .
Marge Yeager
Tom Henke
Mike Kraemer
ATTACHMENT 2
LETTER OF WITHDRA WL
TIMBER LANE W ATERMAIN PROJECT
CITY OF SHOREWOOD
RESOLUTION NO. 05-_
A RESOLUTION ACCEPTING WITHDRA WL OF PETITION FOR THE EXTENSION
OF MUNICIPAL WATER SERVICE ON TIMBER LANE
WHEREAS, the City of Shorewood adopted Resolution No. 04-017 that declared adequacy of
petition requesting that the City allow the watennain to be extended to the petitioners' property; and
WHEREAS, the names ofthose petitioners and their associated locations are as follows:
1. Lucille Goodwyn. .. . .. . . . . .. .. .. .. . . .. . . .. . .. ....5525 Timber Lane
,2. Richard Tradewell... ................... .'..... ...5515 Timber Lane
3. PeterWattson.. ....... ......... ...... .............5495 Timber Lane
4. Donald Erickson.. . . ... . . .. . . . . . . . . .. . . . . . . . . . . .. .5485 Timber Lane
5. Hans Schaub.. ........ ...... ...... .......... .......5465 Timber Lane
6. Steven & Diana Haskins...... ...... .............5455 Timber Lane
7. Marjorie yaeger....... ...... ............ ..........5445 Timber Lane
8. Tom & NancyHenke.............................5435 Timber Lane
WHEREAS, additional properties denoted as
9. Gideon Cove Homeowners Association.. . . . . .Pill 34-117-23-22-0041
10. Gideon Cove Homeowners Association.. . . . . .Pill 34-117-23-22-0038
11. Albert & Valarie Guralnik.................... ...Pill 34-117-23-'22-0004
abut the Improvement and have been determined that said lots are unbuildable under separate
proceedings by the City Council, and therefore shall not be included as pa11 of this Improvement; and
WHEREAS, the City is in receipt of a letter dated October 6, 2005, attached hereto as "Exhibit
A," from said petitioners requesting the City to formally withdraw said Petition.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shore wood,
Minnesota:
1. The Petition is hereby withdrawn for said Improvement.
ADOPTED BY THE CITY COUNCIL of the City of Shorewood this 24th day of October,
2005.
ATTEST:
WOODY LOVE, MAYOR
CRAIG DAWSON, CITY ADMINISTRATORlCLERK
Mr. Larry Brown
Mr. Craig Dawson
October 6, 2005
RE: Timber Lane Water Petition
REC~'VED
OCT 11 Z005
City of Shorewood
Shorewood, MN 55331
Dear Mr. Brown and Dawson, CITY OF SHOREWOOD
We were advised that city water would cost an estimated $16,000 per ho e e ore It
went out to bid. The results were approximately 10,000 dollars higher. You are not
planning to release the new RiQ until the spring of next year (like this year), which is
after they have already released their bids for work for that year. This means thatthe bid
will be high because they are already committed for the year. We have evidence that
similar quotes in Mound were 20-21,000 per house. So we do not see the quote being
significantly lower.
With that in mind I have surveyed the street and we agree that city water is not an
economical solution at this time. Please cancel our request/appeal for city water at this
time. This is based on the facts above and our understanding that it would be around
16,000 per house, which is far from where we ended. It did not include the additional 4-
7000 for hookup to the house which was not mentioned by your office at first. If you
have any questions please give me a call at 952-474-1268.
Best Regards,
~F es?y~~
~1.~~0
evenW.~s
. Cc: Duane Bagdon
Lucille Goodwin
Rich Tra~ewell
Peter Wattson
Don Erickson
Hans Schaub. .
Marge Yeager
Tom Henke
Mike Kraemer
\ EXHIBIT A