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052305 CC Reg AgP . . . . . CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, MAY 23,2005 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. AGENDA 1. CONVENE CITY COUNCIL MEETING A. Roll Call B. Review Agenda 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes, May 9, 2005 (Att.- Minutes) B. City Council Work Session Minutes, May 9, 2005 (Att. - Minutes) Mayor Love _ Lizee Turgeon _ Callies Wellens 3. CONSENT AGENDA - Motion to approve items on Consent Agenda & Adopt Resolutions Therein: NOTE: Give the public an opportunity to request an item be removed from the Consent Agenda. Comments can be taken or questions askedfollowing removal from Consent Agenda. A. Approval of the Verified Claims List'(Att.- Claims List) B. Staffing - No action required C. Petition for Consent to Assign Encroachment Agreement - Century Tel (Att. - Public Works Director's memorandum, Resolution) D. Hennepin County Joint Cooperation Agreement for Fiscal Year 2006-2008 CDBG (Att. - Administrator's memorandum, Resolution) . E. Wine Club Authorization (Liquor Manager's memorandum) F. Accept Bids and Award Contract for Bituminous Seal Coating of Roadways (Att - Public Works Director's memorandum,. Resolution) G. Setting Date for Public Information Meeting for Roadway Improvement Projects (Att.- Public Works Director's memorandum) 4. MATTERS FROM THE FLOOR (No Council action will be taken.) CITY COUNCIL AGENDA - May 23, 2005 PAGE 2 OF 2 6. PUBLIC HEARING 7. PARKS - Report by Representative A. Report on Park Commission Meeting Held May 10, 2005 (Att.- Draft Minutes) 8. PLANNING - Report by Representative A. C.U.P. for Accessory Space Over 1200 Sq. Ft. (Att. - Planning Director's memorandum; Draft Resolution) Applicant: Paul and Sheryl Gilbertson Location: 26055 Smithtown Lane B. C.U.P. for Accessory Space Over 1200 Sq. Ft. (Planning Director's memorandum; Draft Res~~ . Applicant: Clark Kent Homes Location: 5835 Eureka Rd .. 9. GENERALiNEW BUSINESS A. Sale of Bonds (Att. - Finance Director's memorandum, Resolution) . 10. ENGINEERINGIPUBLIC WORKS 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff 1. County Road 19 Intersection . B. Mayor & City Council 1. SLMPD Issues Group 12. 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 Executive Summary Shorewood City Council Regular Meeting Monday, 23 May 2005 . A Work Session will immediately follow the Regular City Council meeting this evening. . Agenda Item #3A: Enclosed is the Verified Claims List for Council approval. Agenda Item #3B: Staffing - no action required. . Agenda Item #3C: The City has received a petition that requests assignment of the rights and interests of the agreement between the City of Shore wood and KMC Telecom, to Century Tel, for the installation and operation of telecommunication facilities on the water tower located at on the Minnewashta Elementary School property at 26352 Smithtown Road. The petition cites that on February 2, 2005, Century Tel purchased the metropolitan area network and transmission facilities from KMC Telecom III in several states, including Minnesota. The action item before the City Council is simply to approve the Resolution that assigns the rights, interests and responsibilities of the current agreement with KMC Telecom ill to Century Tel. . Agenda Item #3D: Shorewood has participated in the Hennepin County Consolidated Pool for the federal Community Development Block Grant (CDBG) Program for several three- year funding cycles. While Shorewood has not competed well in the limited program categories in CDBG, it is necessary to be a participant in orderto be eligible for anything. Last year, for instance, Shorewood was awarded a multi-applicant grant (along with Orono, Tonka Bay, and the West Hennepin Affordable Housing Land Trust) for assistance in purchasing a property to place in a housing land trust. (Unfortunately, such a property did not show up on the market.) Adoption of a resolution by simple majority is needed to. continue participation in the 2006 -2008 CDBG program. . Agenda Item#3E: At its last meeting, the Liquor Committee reviewed a proposal from Don Swandby to establish a Shorewood Wine Club. The purpose of the club is to increase . sales and foster store loyalty in a fun and educational setting. The attached brochure provides details of the Wine Club. The Liquor Committee is very supportive of this exiting new effort. Approval and Authorization to establish a new Wine Club is recommended. ,. '-~ PRINTED ON RECYCLED PAPER Executive Summary - City Council Meeting of 23 May 2005 Page 2 of2 Agenda Item #3F: Bids were received, opened, and tabulated on May 18th for the bituminous seal coating of roadways for the Cites of Shorewood, Excelsior and Tonka Bay. Pearson Brothers, Inc. is the lowest responsible bidder. The award of the bid is based upon the total bid amount for all cities. Staff is recommending that the contract be awarded to Pearson Brothers, Inc. for an .amount not to exceed $45,000. This will keep the overall contract costs within the $66,000 budgeted for the year 2005. Agenda Item #3G:. Staff has conducted public informational meetings and provided opportunities for comment for the Wedgewood DrivelMallard Lane/Teal Circle Roadway Improvement Project. From these meetings, it has been determined there has been little interest in extending municipal water service along this route. The remaining issue is with regard to whether the project involves pavement reclamation (i.e. recycling the existing pavement and rock) with a 3-inch overlay; or whether to reconstruct the roadway and add curb and gutter and storm sewer. To date, there has not been a consensus reached on this issue. Therefore, Staff is recommending that a public information meeting be conducted on June 9,2004, at 6:00 p.m. to 7:30 p.m., for the Wedgewood Drive, Mallard Lane and Teal Circle Project. Agenda Item #5A: The Shorewood Parks Foundation will be presenting a $6,000 check to the City Council as part of its commitment to contribute $100,000 to the construction of Eddy Station. Foundation President Ken Dallman and Treasurer Don Kelly are expected to make the presentation. Agenda Item #7 A: A Representative will be present to report on the May 10, 2005 Park Commission Meeting. Agenda Item #8A: Paul and Sheryl Gilbertson propose to build a detached screen porch on their property at 26055 Smithtown Lane. The area of the new porch, when combined with and existing utility shed and a detached garage on the property, exceeds 1200 square feet in aggregate area, necessitating a conditional use permit. The Planning Commission agreed unanimously with staff's recommendation to approve the C.D.P. A draft resolution is included in your packet for your consideration. Agenda Item #8B: Clark Kent Homes recently completed a new home at 5835 Eureka Road. A buyer for the home desires an additional detached garage that will result in greater accessory space than 1200 square feet. The application complies with the four criteria for the conditional use permit required for such cases. The Planning Commission voted unanimously to recommend approval of the C.D.P. A draft resolution is included in your packet for your consideration. . . . . Agenda Item #9A: Bond Consultant Paul Donna, of Northland Securities, will present the results of the 2005 G.O. Water Revenue Bond Sale. The proceeds from this sale will be used to fund needed improvements to the municipal water system. As part of this sale, Moody's Investor Services has affirmed the City's Bond AaJ bond rating. Staff is . recommending adoption of the Resolution Awarding the Sale of2005 G.O. Water Revenue Bonds. . . . . . CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETNG MONDAY, MAY 9, 2005 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00P.M. MINUTES 1. '. .,,,~ !'!t. 'F T .",~ "'.' ~ 1>-";; "~ '~ :~ .~1 ;{l U f,-g", ,.' CONVENE CITY COUNCIL MEETING Mayor Love called the meeting to order at 7:00 P.M. A. Roll Call Present: Mayor Love, Councilmembers Callies, Lizee, Wellens, and Turgeon (arrived 7:02 P.M.); Administrator Dawson; Attorney Keane; Finance Director Burton; Planning Director Nielsen, and Engineer Brown. Absent: None B. Review Agenda Wellens moved, Callies seconded, Approving the Agenda as presented. Motion passed 4/0. 2. APPROVAL OF MINUTES A. Board of Review Meeting Minutes, April 25, 2005 Lizee moved, Wellens seconded, Approving the Board of Review Meeting Minutes of April 25, 2005 as presented. Motion passed 4/0. B. City Council Regular Meeting Minutes, April 25, 2005 Wellens moved, Callies seconded, Approving the City Council Regular Meeting Minutes of April 25, 2005 as amended. Motion passed 5/0. 3. CONSENT AGENDA Wellens moved, Lizee seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein: A. Approval of the Verified Claims List B. Staffing - No action required C. Authorizing RESOLUTION NO. 05-042, "A Resolution Approving License for Tree Trimmers. " ~jf ~ /1 CITY OF SHOREWOOD REGULAR MEETING MINUTES May 9, 2005 Page 2 of6 D. Authorizing RESOLUTION NO. 05-043, "A Resolution Approving Plans, Specifications, and Estimates and Authorizing Advertisement for Bids for the Badger Well Reconstruction Project, City Project 98-06." Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented. 5. REPORTS AND PRESENTATIONS There were no reports and presentations presented. 6. PUBLIC HEARING Timber Lane Water Main Mayor Love opened the Public Hearing at 7:05 P.M. to consider the extension of municipal water on Timber Lane. Administrator Dawson stated that a petition had been filed with the City Clerk requesting municipal improvements. The Petition was for a Minnesota Statute 429 Special Assessment Improvement Project. Engineer Brown reported that the improvement project involves a petition project for 1544 lineal feet of water main from Lawtonka Drive to the cul-de-sac of Timber Lane. The project includes the installation of three fire hydrants. Nine properties are potentially affected. Seven of those properties have filed a 429 Petition form with the City Clerk. City Ordinance requires that projects have 67% of affected properties sign a 429 Petition. On November 22, 2004, the City Council approved Resolution 04-098, Declaring the Adequacy of a Petition for the Extension of Municipal Water Service on Timber Lane and allowing the City to move forward with plans and specifications. Brown continued that the engineer's estimate for the project would be $151,952, yielding an assessment amount of $16,883.56 per property for the principal amount. Engineer Brown noted that tonight's public hearing is not an assessment hearing but a hearing to determine if the improvement project should move forward. Brown stated the City would obtain bids, complete the project and then hold an assessment hearing. Engineer Brown stated that based on the condition of the roadway, the City would install an overlay after the watermain installation. Brown clarified that the project places the main down Timber Lane, extends lines for fire hydrants and brings the service to the property line. It becomes the homeowners' responsibility to extend the main from the property line to the home. Duane Bagdors, 5585 Timber Lane, addressed Council stating his opposition to the watermain improvements along Timber Lane and expressed concerned regarding the costs and assessment for the project. Mr. Bagdors noted that he recently installed a new well. . . . . . . . . . . CITY OF SHOREWOOD REGULAR MEETING MINUTES May 9, 2005 Page 3 of6 There being no further public comments, Mayor Love closed the public comment portion of the Public Hearing at 7:11 P.M. Councilmember Wellens asked how the watermain improvement assessment costs have increased over the past ten years. Engineer Brown noted that the connection charge was increased to $10,000 about ten years ago. The City Ordinance presently states that homeowners will pay the cost of the project or $10,000, which ever is greater . In answer to Mayor Love's question regarding cost estimates, Engineer Brown noted that a bid opening would be held on June 8 and considered at the Council meeting on June 13. Council will have a better idea of the impact to each household once bids are received. Brown reiterated that the assessment hearing would be on the total cost of the project and there may be variables that could affect the costs. Mayor Love closed the Public Hearing at 7: 17 P.M. 7. PARKS Engineer Brown reported the Park Commission is considering more Music in the Park items and ways to reduce vandalism in the parks. 8. PLANNING - Report by Representative Commissioner Gagne reported on two matters considered and actions taken at the April 8, 2005, Planning Commission meeting (as detailed in the minutes of that meeting). 9. GENERAL/NEW BUSINESS A. Authorizing the Transfer of the Board of Appeal and Equalization to Hennepin County Administrator Dawson explained that Minnesota Statutes provide the authority for cities to transfer the duties of the local board of appeal and equalization to Hennepin County. The process takes a notice of public meeting and approval of a resolution before December 1, 2005. The transfer of authority must be for a period of at least three years. Approval of the Resolution will transfer service to the County through July 2008. Turgeon moved, Callies seconded, Adopting RESOLUTION NO. 05-044, "Authorizing the Transfer of the Duties of the Local Board of Appeal and Equalization to Hennepin County for a Three-Year Period Commencing in 2006." Motion passed 5/0. 10. ENGINEERINGIPUBLIC WORKS A. Approving Plans, Specifications, and Engineering Estimates and Authorize Advertisements of Bids for Timber Lane Water Main Project. CITY OF SHOREWOOD REGULAR MEETING MINUTES May 9, 2005 Page 4 of6 Engineer Brown reported that tonight's earlier public hearing addressed the watermain improvements for . Timber Lane. By adopting the Resolution, the Council will approve the plans, specifications and estimates and authorize the advertisement of bids for Timber Lane Watermain Improvements Project as delineated in the memorandum. Callies moved, Lizee seconded, Adopting RESOLUTION NO. 05-045, "Approving Plans, Specifications and Estimates and Authorizing Advertisement for Bids for the Timber Lane Watermain Project, City Project 04-05." Motion passed 5/0. B. Authorization to Make Traffic Control Changes to Radisson Road Engineer Brown reported that on April 4, 2005, staff conducted the last public information meeting for consideration of traffic changes to Radisson Road. Mr. Chuck Rickart, Transportation Engineer from WSB and Associates, addressed the Council regarding the safety and operation study that was conducted along a portion of Radisson Road in January, noting that four alternatives were considered. Since the initial study, three additional alternatives have been considered. Mr. Rickart stated that staff is recommending to start with signing and striping along the roadway, including signage restricting cross movement from Old Market Road during evening peak hours. . Engineer Brown noted that some residents have concerns about retaining walls and have suggested the need for stop signs. The recommended alternative addresses a majority of the feedback received,is an alternative that does not prohibit future options for the roadway, and is cost-effective and the least expensive of the alternatives considered. . Mayor Love asked if anyone in the audience wished to address the Council regarding Radisson Road. Ms. Patrice Aubrect, 20575 Radisson Road, stated that she agrees with recommendation to place signs, but expressed concern that the cost of striping the roadway is excessive, given the impact a stripe would have. Mr. Rickart agreed that striping can be expensive; however, the suggested obtaining a bid for the striping as an option and then make a decision based on the actual cost. . Councilmember Turgeon expressed concern with striping Radisson Road because it is very narrow. Mr. Rickart agreed that the lanes would be narrow. A skip-stripe would be used to delineate the curves and clarify the designated lanes. The entire roadway would not be striped. Striping is not required but an option to improve safety. Mayor Love asked Mr. Rickart what merit striping would have and if striping the center will help control traffic speeds. Mr. Rickart stated that he believes striping is an important aspect of the plan, especially around the curves. . . . . . . CITY OF SHOREWOOD REGULAR MEETING MINUTES May 9, 2005 Page 5 of6 Attorney Keane noted that traffic control should be consistent with safe engineering and not violate a driver's expectations. Councilmember Callies stated that there may not be a perfect solution, but there were concerns expressed at the meetings regarding safety issues. Callies stated that she was comfortable with the signage and bidding the striping. Callies suggested continued assessment of the situation after these measures are put in place. Callies moved, Wellens seconded Authorization to Make Traffic Control Changes to Radisson Road, as Recommended by Staff, and to Seek Bids for Signing and Striping. Motion passed 5/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff 1. County Road 19 Intersection Engineer Brown reported that construction along County Road 19 continues with utility relocation along the west side of the north leg. The City has retained R.W. Beck and Associates, electrical engineers, to assist in the analysis of the electrical proposal with Xcel Energy and help determine if the costs proposed are reasonable. Engineer Brown stated that there would be periods of closure of Smithtown Road for possibly two to four days next week. Brown stated that they are working with the utilities to try and shorten the closing to one day. There will be several more road closures along Smithtown and Country Club Road as the project continues. Councilmember Lizee suggested signage along with a traffic control persons during the closures. Engineer Brown stated that staff is working with a number of agencies to facilitate the road closings as well as informing the schools of the anticipated closing dates. Brown also noted that there would be a two-week period to swap out the temporary control signals and install the new signals. Stop signs will be put back at the intersection until the permanent signals can be completed. There will also be traffic delays on the east side near Echo Road, at the end of the project. The road will be reduced to one lane traffic while the contractor changes the road width. Engineer Brown expressed his appreciation to the local businesses for their cooperation during the road construction project. B. Mayor & City Council 1. SLMPD Issues Group Councilmember Turgeon reported that the SLMPD Issues Group will be meeting Tuesday evening, May 10, 2005 and will review draft language to the Joint Powers Agreement. There are only a few meeting remaining and participation is key. CITY OF SHOREWOOD REGULAR MEETING MINUTES May 9, 2005 Page 60f6 Mayor Love encouraged Councilmembers to attend the SLMPD Issues Group meeting. Meetings start at . 4:00 P.M. Mayor Love reported that there was an Excelsior Fire District Board Committee meeting and the Relief Association was granted a $300 per year benefit increase. The Board turned over the Mission Statement to the Fire Department for final review. The Mission Statement will be a combined statement between the Fire District Board and firefighters. 12. ADJOURN Turgeon moved, Wellens seconded, Adjourning the Regular City Council Meeting of May 9, 2005, at 7:55 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Shelley Souers, Recording Secretary . Woody Love, Mayor ATTEST: Craig Dawson, City Administrator/Clerk . . . . . . . . CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, MAY 9, 2005 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS IMMED~TELYFOLLOWING REGULAR COUNCIL MEETING NUNUTES 1. CONVENE WORK SESSION MEETING o RJ\ FT Mayor Love called the meeting to order at 8:12 P.M. A. Roll Call Present: Mayor Love; Councilmembers Lizee, Turgeon, Wellens and Callies; Administrator Dawson, Engineer Brown and Planning Director Nielsen. Absent: None B. Review Agenda Wellens moved, Callies seconded, approval of the Agenda as presented. Motion passed 5/0. 2. PUBLIC WORKS - RELATIONSIDP WITH EXCELSIOR Administrator Dawson updated the Council on recent discussions with the City of Excelsior to reconsider collaboration among the Public Works departments regarding integrating of efforts and resources with Shorewood. Administrator Dawson noted that Excelsior is also talking with Deephaven and Tonka Bay and wishes to take a slow exploratory approach to a potential relationship beyond the informal one that exists. Administrator Dawson stated that there have been some changes in the. Excelsior staff with the recent retirement of Excelsior's Public Works Superintendent, which may have prompted them to reconsider a co-operative working relationship. Dawson noted that having examined this idea in the past, they have identified potentials benefits and advantages to working collaboratively. Engineer Brown stated that the City of Excelsior is not ready to move ahead with a formal arrangement, but as they continue to review their staffing needs this idea may come back up for discussion. Administrator Dawson noted that there is a history of neighboring cities working cooperatively and Shorewood will continue working with surrounding cities. Mayor Love suggested Staff examine the possibilities, keep the Council informed and continue to work informally. -it- ;z. 8 CITY COUNCIL WORK SESSION MINUTES MAY 9,2005 Page 2 of 4 3. HUMAN RESOURCES UPDATE A. Employee Handbook Administrator Dawson reported that the City has retained Labor Relations Associates (LRA) to help the City look at human resource issues. Administrator Dawson noted that the staff is currently involved with updating position descriptions. Administrator Dawson noted that LRA has sent out information to other cities to do an external market comparison. LRA will also review the city's wage system. The Employee Handbook committee will reconvene to examine the language in the Employee Handbook and gather ideas from the staff regarding things they may want to see in the handbook. B. .. Benefits Committee Update Administrator Dawson noted that a Benefits Committee has been formed to review the current benefits offered, consider what might be desired in the future and to identify employee priorities. Administrator Dawson suggested that the Benefits Committee become a standing committee so they can review benefits annually and consider changes in the market and priorities of the employees. Mayor Love asked if there would be comparison to benefits with other cities and to the private sector. Administrator Dawson noted that the City has the Stanton Survey to use as a comparison to other cities. Dawson stated that it would be several weeks before the committee is ready to present any data. Councilmember Turgeon recommended that staff provide a two-year comparison of benefits when they report back to Council. c. . Education Reimbursement Administrator Dawson reported that the current Employee Handbook has language addressing education reimbursement and this section is being reviewed. Councilmember Turgeon stated that the current language in the Employee Handbook, regarding education reimbursement, is vague and would prefer more defmitive language regarding the City's reimbursement of continuing education. Councilmember Turgeon stated that because this would be a policy change, it is relevant for Council to review this language. Mayor Love stated that the Council could continue discussion and make choices based on the feedback and the parameters they get back from a comparison of other cities. 4. CITY ADMINISTRATOR PERFORMANCE EVALUATION PROCESS Councilmember Turgeon noted that Councilmembers were sent an evaluation form for Administrator Dawson and requested that Council complete the form within 30 days. . . . . . . . . . . CITY COUNCIL WORK SESSION MINUTES MAY 9, 2005 Page 3 of4 Mayor Love stated that he would prefer to see an abbreviated form at the mid-year point or just sit down with the Administrator as a group. Councilmember Lizee stated that she would prefer to do an annual review, and if there is consensus to conduct a mid-year review, that it be verbal. Mayor Love asked Administrator Dawson to schedule an executive session for the mid-year review. 5. CAT REGULATIONS Administrator Dawson stated that the City receives phone calls occasionally throughout the year regarding cats and asked Council if they would like to have an ordinance to regulate and perhaps license cats. Council members agreed that they do not want to license and regulate cats. 6. SHOREWOOD'S 50TH ANNIVERSARY - MAY 2006 Administrator Dawson reported that Shorewood will celebrate its 50th anniversary next year and asked if Council would like to observe this anniversary. Mayor Love suggested, and Council agreed, that no formal recognition take place; however, it would be appropriate to denote the 50th anniversary on the City stationery. 7~ WARD SYSTEM REVIEW Administrator Dawson stated that staff is seeking direction with regard to how Council would like to proceed with any review of the ward system. Mayor Love stated that there were two public hearings and a lot of public discussion regarding wards and the matter can be reviewed and put in front of future Councils; however, he did not believe there has been enough time decide ifthe system is or isn't working. Mayor Love noted that a survey might be helpful to measure future elections by. Council agreed that a paragraph in the City's Shore Report outlining how a ward functions and address some questions regarding wards. Councilmember Wellens agreed to take the lead on this matter and work with Administrator Dawson to create an explanation of wards and Q&A. CITY COUNCIL WORK SESSION MINUTES MAY 9, 2005 Page 4 of4 8. OTHER None. 9. ADJOURN Lizee moved, Wellens seconded, Adjourning the City Council Work Session Meeting of May 9,2005, at 9:37 P.M. RESPECTFULLYSUBNUTTED. Shelley Souers, Recording Secretary Woody Love, Mayor ATTEST: Craig Dawson, City Administrator/Clerk . . . . . . PAYABLESAPPROVALS For 5/23/05 Council Meeting . ./.\ I j. (~( (. -t-I! - ~;1 Prepared by: _ {[/L,f/1J2t0J~_ _l~;~ Cathe~e Elk~, S~ Acc~untant Reviewed by: ~ ~ Bonnie Burton, . nce Director . Approved by: Crai awson, City Administrator . . Date>'? -/7-C)5- Date: ~ Date: (J5.18.l8 11j It PAYROLL APPROVALS For 5/23/05 Council Meeting . Date:!J-/7-G/5- . Date: _ Approved by: Date: '05.1,g, US Crai awson, City Administrator . . . . I . . 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: May 19, 2005 RE: Petition for Consent to Assign Encroachment Agreement Century Tel . Attachment 1 is a petition that requests assignment of the rights and interests of the agreement between the City of Shorewood and KMC Telecom, for the installation and operation of telecommunication facilities on the water tower located at 26352 Smithtown Road. This water tower site is located on the Minnewashta Elementary School property. The petition cites that on February 2,2005, Century Tel purchased the metropolitan area network and transmission facilities from KMC Telecom III in several states. Minnesota being one of the subject states. The action item before the City Council is simply to approve the resolution that assigns the rights, . interests and responsibilities of the current agreement with KMC Telecom III to Century Tel. Recommendation Staff is recommending approval of the Resolution that assigns the encroachment agreement between the City of Shorewood and KMC Telecom, to Century Tel. . :if 3L- n ~.1 PRINTED ON RECYCLED PAPER CITY OF SHOREWOOD RESOLUTION NO. 05- . A RESOLUTION ASSIGNING ENCROACHEMENT AGREEMENT FROM KMC TELECOM ill, LLC TO CENTURY TEL AQffiSISTIONS, LLC WHEREAS, KMC Telecom, III Inc. ("KMC"), and the City of Shorewood, Minnesota entered into an Encroachment Agreement dated November 11, 1998; and WHEREAS, Century Tel Acquisitions, LLC and KMC have jointly filed an application at the Minnesota Public Services Commission pursuant to Minnesota State Statute ~237.74(12) for the transfer of assets and customers from KMC Telecom III LLC (f/kJaJ KMC Telecom, LLC; KMC Telecom ill, Inc.), a wholly owned subsidiary of KMC Telecom Holdings, Inc. to KMC Telecom III LLC, to KMC Telecom ill LLC, a wholly owned subsidiary of Century Tel Acquisitions, LLC.; and WHEREAS, Century Tel Acquisitions, LLC agrees to adhere to all applicable provisions . of said agreement. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: 1. The agreement between the City of Shorewood and KMC Telecom III LLC, is hereby assigned with all rights and obligations to Century Tel Acquisitions, LLC. . 2. The consent of such assignment shall become effective as of the date of the closing of the AssetPurchase ofKMC Telecom III LLC's assets in Shorewood y Century Tel. In the event that the Asset Purchase has not closed before or within 90 days after June 30th, 2005, this consent shall be null and void. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd . day of May, 2005. WOODY LOVE, MAYOR ATTEST: CRAIG W. DAWSON, CITY ADMINISTRATOR . . '. ~om. PHONE - DATA -INTERNET . p-r~~r~iVfit} MAR 1 8 2005 Regulatory Affairs 1755 North Brown Road Lawrencevllle, Georgia 30043 Tel 678.985.7900 Fax 678.985.6213 www.kmctelecom.com March 16,2005 ! .:::ITY OF SHOREWOOD i ---...-.............------__..1 Mr. Craig Dawson City of Shore wood 5755 Country Club Road Shorewood,~ 55331 PETITION FOR CONSENT TO AsSIGN ENCROACHMENT AGREEMENT . Dear Mr. Dawson: As you are aware, KMC Telecom II, Inc. ("KMC") and the City of Shore wood, Minnesota (the "City") entered into an Encroachment Agreement ("Agreement'') which took effect November 11, 1998 with the initial term expiring on November 10, 2003 and with automatic renewals for five year periods, with the first automatic renewal period expiring on November 10, 2008. . . On February 2, 2005, KMC and CenturyTel Acquisition LLC ("CenturyTel Acquisition") CenturyTel Acquisition, LLC d/b/a KMC Telecom ill, a limited liability holding company wholly owned by CenturyTel, Inc ("CenturyTel, Inc.''), entered into an asset purchase agreement, under which CenturyTel Acquisition would acquire the metropolitan area network transmission and switching facilities ofKMC used to provide telecommunications services, as well as KMC's customer relationships, in sixteen markets in the following states: (i) Alabama; (ii) Indiana; (Hi) Kansas; (iv) Louisiana; (v) Michigan; (vi) Minnesota; (vii) Mississippi; (viii) Ohio; (ix) Tennessee; (x) Texas; and (xi) Wisconsin. The Minnesota acquisition includes KMC's network transmission facilities in the city of Shorewood. The anticipated date for the transfer of ownership to CenturyTel is approximately July 1, 2005, or as soon thereafter as the necessary governmental approvals can be. obtained. Subject to the required governmental approvals, KMC and CenturyTel Acquisition respectfully petition the City for consent to transfer and assign KMC's rights and obligations under the Agreement to . CenturyTel. Upon, assignment, KMC would be released from the rights, duties and obligations of the Agreement and such rights, duties, and obligations shall extend to, be binding upon, and inure to the benefit of Century Tel. . Please find attached in triplicate the Resolution which authorizes the transfer and assignment of rights and obligations.ofKMC to CenturyTel d/b/aKMC Telecom m. Each of the originals has been executed by KMC and CenturyTel. KMC and CenturyTel respectfully request that the City acknowledge its consent to the assignment and transfer by executing and returning two fully executed originals in the enclosed prepaid Federal Express package. Attachment # 1 Mr. Craig Dawson March 16, 2005 Page 2 If you have any questions or concerns, please contact me at (678) 985-6220. Thank you for your attention to this matter. n . Senior Counsel oldings, Inc. cc: Dan Davis, Senior Vice President and General Counsel - .,1 "', . . . .. . . . . . 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 cD May 19, 2005 . Hennepin County Joint Cooperation Agreement for Fiscal 2006-2008 CDBG The City of Shorewood has participated for many years in the Urban Hennepin County Joint Cooperation Program (sometimes referred to as the "Consolidated Pool") for the federal Community Development Block Grant (CDBG) program administered by the U.S. Department of Housing and Urban Development (RUD). Nearly all communities in Hennepin County cities, except for the largest ones, participate in the Urban Hennepin County program. 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 of the CDBG program has changed over the years, with more attention being paid to housing. The program remains focused on serving persons with low and moderate incomes. A limited amount may be designated for social services, rather than bricks-and-mortar activities, so some funds are going to things like senior services and day care assistance. In essence, for the City to be able to avail itself of these funds, it will need to enter into a new agreement. The current agreement expires at the end ofthe fiscal year, September 30, 2005. Hennepin County is requiring that approved and executed agreements be received by June 30. The 2006-2008 agreement has some amendments to the current agreement to require timely (i.e., 18- month) performance by grantees to expend all funds. (A "gray-line" version of the proposed agreement is attached.) While the number of grants, has declined over the last two decades, a total of $229,000 has been granted in Shorewood for housing rehabilitation improvements. Current costs per rehab are in the $15,000 - 18,000 range. In 2004, the City was a co-recipient of a $40,000 grant for an affordable housing project through a housing trust; unfortunately, a qualifying property did not come to market. While the City may seldom use the Consolidated Pool funds, it is prudent to have this revenue source available for such activities. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution approving the 2006-2008 Joint Cooperation Agreement and authorizing its execution. n '-~ PRINTED ON RECYCLED PAPER #'3D f CITY OF SHOREWOOD . RESOLUTION NO. 05- RESOLUTION APPROVING AND AUTHORIZING 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 FISCAL YEARS 2006-2008 WHEREAS, the City of Shorewood and the County of Hennepin have currently in effect a Joint Cooperation Agreement for purposes of qualifying as an Urban County under-the United States Department of Housing and Urban Development (BUD) Community Development Block Grant (CDBG) 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 CDBG and HOME Programs. NOW, THEREFOR, BE IT RESOLVED by the Council of the City of Shorewood that a new Joint Cooperation Agreement between the City and County be approved and executed effective October 1,2005, and that the Mayor and 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 May, 2005. . Woody Love, Mayor Attest: Craig W. Dawson, City Administrator/Clerk . ~ '... . . . . . JCA greyline February 22, 2005 Contract No. JOINT COOPERATION AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, State of Minnesota, hereinafter referred to as "COUNTY," A-2400 Government Center, Minneapolis, Minnesota, 55487, and the cities executing this Master Agreement, each hereinafter respectively referred to as "COOPERATING UNIT," said parties to this Agreement each being governmental units of the State of Minnesota, and made pursuant to Minnesota Statutes, Section 471.59: - WITNESSETH: COOPERATING UNIT and COUNTY agree that it is desirable and in the 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 to secure and administer Community Development Block Grant funds as an Urban County within the provisions of the Act as herein defined and, therefore, in consideration of the mutual covenants and promises con.tained in this Agreement, the parties mutually agree to the following termS and conditions. COOPERATING UNIT aclmowledges that by the execution of this Agreement that it understands that it: 1. May not also apply for grants under the State CDBG Program from appropriations for fiscal years during which it is participating in the Urban County Program; and 2. May not participate in a HOME Consortium except through the Urban County. I. DEFINITIONS The definitions contained in 42 USC 5302 of the Act and 24 CFR g570.3 of the Regulations are incorporated herein by reference and made a part hereof, and the terms defin.ed in this section have the meanings given them: A. "Act" means Title I of the Housing and Community Development Act of 1974, as amended, (42 U.S.C. 5301 et seq.). B. "Activity" means a CDBG-funded activity eligible under Title I of 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 CDBG funding as part of the Consolidated Plan. D. "Consolidated Plan" means the document bearing that title or similarly required statements or d09uments submitted to BUD for authorization to expend the annual grant amount and which is developed by the COUNTY in conjunction with COOPERATING UNITS as part of the Community Development Block Grant Program. Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 1 E. "Cooperating Unit(s)" means any city or town in Hennepin County that has entered into a cooperation . agreement that is identical to this Agreement, as well as Hennepin County, which is a party to each Agreement. F. "HUD" 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 by HUD to have a population of 50,000 or more people. H. "Program" means the HUD Community Development Block Grant Program as defined under Title I of the Housing and Conununity Development Act of 1974, as amended. 1. "PrograIfl Income" means gross income received by the recipient or a subrecipient directly generated from the use ofCDBG. J. "Regulations" means the rules and regulations promulgated pursuant to the Act, including but not limited to 24 CFR Part 570. K. "Urban County" means the entitlement jurisdiction within the provisions of the Act and includes the suburban Hennepin County municipalities which are signatories to this Agreement. IT. PURPOSE The purpose of this Agreement is to authorize COUNTY and COOPERATING UNIT to cooperate to undertake, Qr 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 and HOME appropriations for-the Federal Fiscal Y ears RtIllJl~.l1 and from any program income generated from 'Ule expenditure of such funds. ITI. AGREEMENT The term of this Agreement is for a period~ommencing on Octo~er 1, [~~ ~nd terminat~ng no soo;;i~~J!1an the end of the program year covered by the Consohdated Plan for the baSIC grant amount for the FIscal Y ear~j.i~, as authorized by HUD, and for such additional time as may be required for the expenditure of funds granted to the ., County for such period. The COUNTY may notify COOPERATING UNITS prior to the end of the Urban County qualificatiolf period that the Agreement will automatically be renewed unless it is terminated in writing by either party. Either the COUNTY or COOPERATING UNIT may exercise the option to terminate the Agreement at the end of the Urban County qualification period. If the COUNTY or COOPERATING UNIT fail to exercise that option, it will not have the opportunity to exercise that option until the end of a subsequent Urban County qualification period. The COUNTY will notify the COOPERATING UNIT in writing of its right to elect to be excluded by the date specified by HUD. This Agreement must be amended by written agreement of all parties to incorporate any changes necessary to meet the requirements for cooperation agreements set forth in the Urban County Qualification Notice applicable for Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 2 . . . . . . . . . the year in which the next qualification of the County is scheduled. Failure by either party to adopt such an amendment to the Agreement shall automatically terminate the Agreement following the expenditure of all CDBG funds allocated for use in the COOPERATING UNIT's jurisdiction. . 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 exec~ted Agreeme~t shall be filed prom~tly by ~e COOPERATING UNIT in the Hennepin County~';!\~",~~~!.of Housmg, Commumty Works and TranSIt, and m no event shall the Agreement be filed later than iP:t.t~;~~~. COOPERATING UNIT and COUNTY shall take all actions necessary to assure compliance with the applicant's certifications required by Section 104(b) of the Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act ofl964; the Fair Housing Act, Section 109 of Title I of the Housing and Community Development Act of 1974; and other applicable laws. IV. ACTIVITIES COOPERATING UNIT agrees that awarded ant funds will be used to undertake and carry out, within the terms of this Agreement, ~,',.\;,"',' 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 agree 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 CPR 9570.501 (b), it is subject to the same requirements applicable to subrecipients, including the requirement for a written Subrecipient Agreement set forth in 24 CFR 9570.503. 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. In such instances, a written Third Party Agreement shall be duly executed between the agency and COOPERATING UNIT in a form prescribed by COUNTY. Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 3 Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 4 . . . . . . . . . .' G. H. COOPERATING UNIT will take actions necessary to assist in accomplishing the community development program and housing goals, as contained in the Urban Hennepin County Consolidated Plan. I. COOPERATING UNIT shall ensure that all activities funded, in part or in 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 shan, in implementing all 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: 1. 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. 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, technjcal assistance and coordinating services to COOPERATING UNIT in the preparation and submission of a request for funding. Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 5 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 coord~ation 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. COUNTY shall retam thirteen percent (13%) of the annual basic grant amount for the administration of the program. 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 data provided by HUD. 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 data supplied by HUD 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 aU COOPERATING UNITS. 2. The extent of poverty in COOPERATING UNIT and the extent of poverty in all COOPERATING UNITS. 3. 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: Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 6 . . . . . ;. ,~ . . . . . 1. 2. 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 I.tIl~, 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 If.~!;BIj, the COOPERATING UNIT must remain a part of the COUNTY program for the entire three-year period of the COUNTYquaiification. ,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 cOTInmmity development and housing assistance activities, specifically urban renewal and publicly-assisted housing. Assistant County Attorney saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 7 VIII. HENNEPIN COUNTY EXECUTION The Hennepin County Board of Commissioners having duly approved this Agreement on , ~iil, and pursuant to such approval and the proper County official having signed this Agreement, the COUNTY agrees to be bound by the provisions herein set forth. COUNTY OF HENNEPIN, STATE OF MINNESOTA By: Chair of its County Board And: AssistantJDeputy/County Administrator Attest: Deputy/Clerk of the County Board APPROVED AS TO FORM: RECOMMENDED FOR APPROVAL .\ssistant County .^.d1ninis.trater Py,914c ,r.,r orks Date: Assistant County Attorney Director, Housing, Community Works and Transit Department Date: Date: APPROVED AS TO EXECUTION: Assistant County Attorney Date: Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 8 . . . . . ; . . . . . . IX. COOPERATING UNIT EXECUTION COOPERATING UNIT, having signed this Agreement, and the COOPERATING UNIT'S governing body having duly approved this Agreement on , 2002, 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, contract A 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 February 23, 2005 Saved: T:\TRE\4HOUSING DEVELOPEMENT\CDBG\Joint Coop Agreement 2005-9\JCA greyline Feb 22.2005 final.doc 9:16 AM 9 .. . 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: May 19,2005 To: Honorable Mayor and City Council Members From: Shorewood Liquor Committee . Re: Proposed Shorewood Wine Club Cc: Craig Dawson, City Administrator ~ . The Liquor Committee, comprised of Councilmembers Callies and Turgeon, Administrator Dawson, Finance Director Burton, and Liquor Manager Swandby, at its last meeting, reviewed a proposal from Don Swandby to establish a Shorewood Wine Club. The purpose of the club is to increase sales and foster store loyalty in a fun and educational setting. The attached brochure describes the events and opportunities the Wine Club is planning to sponsor. The annual membership fee of $65 would entitle members to participate in approximately six events per year. In addition, members would be eligible for certain discounts on wine purchases. The Liquor Committee reviewed Don' s proposal in detail, and is very supportive of this exciting new effort. Recommended Council Action . The Liquor Committee recommends City Council approval and authorization to establish the new Shorewood Wine Club. n '..1 PRINTED ON RECYCLED PAPER #~FS- Shorewood Wine Club Enrollment Form Member Information ($65 enrollment fee): Name Address City Telephone: Home E-mail State Work or cell Zip "Buddy" Member Name (optional; $25 enrollment fee): Name Address City Telephone: Home E-mail State Work or cell Zip Boat Cruise tasting (space limited to first 65 registrants): Yes, I would like to attend. Yes, my "Buddy" Member would like to attend. No, I will not attend. Dinner tasting; Tuesday, March 7; $85 (space is limited) Yes, I would like to attend. Yes, my "Buddy" Member would like to attend. No, I will not attend. For '1n-store" discounts a photo is required. Photos can be on file in the store with your card, or you can show a photo 10 prior to each purchase. For photos on file, please request your picture to be taken by store personnel at your convenience. For store use only: Membership Number Amount Paid . ?1-vears-old: ID checked Staff initials Buddy Member number Date . . Shorewood Wine Club Best in the Westl shorcwooJ Wine Club offus local wine lovers the opportunity for wine eJucation. great value, anJ lots of fun wine tasting opportunities close to home! An annual manbuship fee supplies you with an everyJay in-store Jiscount of 15% on all regular- prieal wines. Your membership entitles you to attenJ a fabulous Lake Minnetonka boat cruise, two sit-Jown wine tastings complete .with alucation programs, anJ. one walk- arounJ tasting. AttenJees of any wine tasting event are entitld to a 20% Jiscount on wines tastd that evening. .- Other opportunities incluJe attenJance at the Southshore Center wine tasting benefit and a wine Jinner, catereJ especially for our club members. AJJitional fees apply for these events. To become a charter member of shorewooJ Wine club, fill out the attacheJ application form, anJ Jrop it off at either of the two shorcwooJ Liquor stores: Shorcwood Liquor West Shorcwood shopping Cmtcr (Next to Cub Foods) 23670 Highway 7 phone: 952/474-6869 Shorcwood Liquor East Wataford Strip Mall {Nrxt to the Holiday Station .905 Highway 7 phone: 952/474. '" $borewld Wine Club Calenda.f Events · July 2005 Wednesday, July 13; 7 - 9 p.m. Lake Minnetonka Boat Cruise and Wine Tasting Join fellow club members for some fabulous wine. and scenery only Lake Minnetonka can offer! Space is limited. This event is complimentary for the first 65 wine club members to register. September 2005 Wednesday, September 14; 7 - 9 p.m. Wine 101 and Morel Take this opportunity to learn from the best! This classroom setting, wine tasting event will have something for everyone! This event is complimentary for wine club members. November 2005 Friday, November 11; 5:30 - 8 p.m. Souths hare Center Benefit Tasting A $20 tax-deductible donation to the Southshore Center gets you an evening of wine and snacks! This is a great opportunity to introduce your friends to the fun of Shorewood Wine Club! Have fun while doing something for your community. January 2006 Wednesday, January 18; 7 - 9 p.m. Valentine Chocolates and Wine This classroom setting even( allows wine lovers of aU levels to learn how wine can compliment your favorite Truffle Hill chocolates! This event is complimentary for wine club members. March 2006 Tuesday, March 7; 7 - 9 p.m. Gourmet Dinner and Wine Tasting Enjoy a fabulous six-course meal, complete with wines to complement each course. Dinner price for club members: $85 (estimate). May 2006 Wednesday, May 13; 6 -8 p.m. Grilling and Wine Pairing Learn some great wines for your summer grilling! This event is complimentary for wine club members. A 20% discount on all wines tasted will be available on all wille evmt nights. .emberShip Informatio. Annual Membership: $65 . One "Buddy"'membership with paid annual dues: $25 Included: . 15% discount on all regular priced wine everyday! . 20% discount on wines tasted at all wine tasting events. . Lake Minnetonka Boat Cruise tasting (first 65 to register) . Two sit-down wine tasting, education events. · Grilling and wine tasting event. Optional Events available for an additional charge: . Gourmet dinner and wine tasting event. (approx. $85) . Southshore Center wine tasting benefit. ($20) . . \ ... 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: May 18, 2005 RE: Resolution Accepting Bids and Awarding Contract for Bituminous Seal Coating of Roadways Within the Cities of Shorewood, Excelsior and Tonka Bay Engineering File No 05-01 . Bids were received, opened, and tabulated on May 18th for the bituminous seal coating of roadways for the Cities of Shore wood, Excelsior and Tonka Bay. Table 1 is a summary of the bids received. . Allied Blacktop, Inc. Bituminous Roadways, Inc. Pearson Bros., Inc. $ 46,507.00 $ 37,221.25 $ 33,176.00 Total Bid Amount All Cities $ 158,155.48 $ 136,868.45 $ 119,094.24 Vendor Bid Amount for Shorewood Table 1 Pearson Brothers, Inc. is the lowest responsible bidder. The award of the bid is based upon the total bid amount for all cities. The City budget encumbers $65,000 per year for the seal coating of roadways. Considering the $16,738.46 that the City has already paid for rock material (under a separate contract) and the subject contract, the current tally of costs are estimated at $ 49,914.46. . :tF3F ft '-~ PRINTED ON RECYCLED PAPER Mayor and City Council Award of Seal Coating Contract May 18, 2005 Page 2 of2 . The actual volume of oil applied determines the final amount paid under the contract, and the weight of the cover aggregate placed. Inspection personnel monitor and tally each roadway to track quantities and payment amounts. While not an exact science, the addition of computerized applicators has increased the accuracy of this process greatly. Nevertheless, since the quantities are not exact, a contingency amount needs to be present to allow for differentials in the quantities. Therefore, to provide for that contingency, Staff is recommending that the contract be awarded to Pearson Brothers, Inc. for an amount not to exceed $45,000. This will keep the overall contract costs within the $65,000 budgeted for the year 2005. Recommendation . Staff is recommending approval of the attached resolution that accepts bids and awards the contract for Bituminous Seal Coating of Roadways within the Cities of Shorewood, Excelsior and Tonka Bay to Pearson Brothers, Inc. . . . . . . .' . . . . . CITY OF SHOREWOOD RESOLUTION NO. 05- A RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR BITUMINOUS SEAL COATING OF STREETS WHEREAS, pursuant to an advertisement for bids for local improvements designated as Bituminous Seal Coating of Streets for the Cities of Shorewood, Excelsior, and Tonka Bay, Minnesota, City Project No. 05-01, bids were received, opened on May 18,2005 and tabulated according to law, and such tabulation is attached hereto and made a part hereof as Exhibit A; and WHEREAS, the City Council has determined that Pearson Brothers, Inc. is the lowest bidder in compliance with the specifications. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shorewood as follows: 1. That the Mayor and City Administrator/Clerk are hereby authorized and directed to enter into a joint contract with the Cities of Shorewood, Excelsior and Tonka Bay, and the firm of Pearson Brothers, Inc., in the name of the City of Shorewood, 2005 Bituminous Seal Coating of Streets, Project No. 05-01, according to the plans and specifications therefore approved by the City Council on file in the office of the City Administrator/Clerk. 2. That the City Administrator/Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except for the deposits of the successful bidder and the next lowest bidder, which shall be retained until a contract has been signed. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 23rd day of May, 2005. ATTEST: Woody Love, Mayor Craig W. Dawson, City Administrator/Clerk a_. . . BID TABULA. FOR THE . BITUMINOUS SEAL COATING OF ROADWAYS BIDS OPENED AT 10:00 A.M. ON MAY 18, 2005 . ., Item City of Shorewood I Quantity Unit Unit Price Amount Unit Price Amount Unit Price Total Furnish and Install Bituminous Material 1 for Seal Coat (cr-2) 15,200 Gal $ 1.68 $ 25,536.00 $ 1.15 $ 17,480.00 $ 1.36 $ 20,672.00 Install Owner Furnished Seal Coat 2 Aggregate, FA-2 Granite 705 Ton $ 8.00 $ 5,640.00 $ 23.25 $ 16,391.25 $ 27.00 $ 19,035.00 3 Traffic Control 1 Lump Sum $ 2,000.00 $ 2,000.00 $ 3,350.00 $ 3,350.00 $ 6,800.00 $ 6,800.00 Subtotal 1 $ 33,176.00 $ 37,221.25 $ 46,507.00 City of Tonka Bav Furnish and Install Bituminous Material 1 for Seal Coat (cr-2) 15,778 Gal $ 1.68 $ 26,507.04 $ 1.15 $ 18,144.70 $ 1.36 $ 21,458.08 Install Owner Furnished Seal Coat 2 Aggregate, FA-2 Granite 749 Ton $ 8.00 $ 5,992.00 $ 23.25 $ 17,414.25 $ 20.00 $ 14,980.00 3 Traffic Control 1 Lump Sum $ 2,000.00 $ 2,000.00 $ 3,500.00 $ 3,500.00 $ 8,000.00 $ 8,000.00 Subtotal 2 $ 34,499.04 $ 39,058.95 $ 44,438.08 City of Excelsior Furnish and Install Bituminous Material 1 for Seal Coat (cr-2) 23,640 Gal $ 1.68 $ 39,715.20 $ 1.15 $ 27,186.00 $ 1.36 $ 32,150.40 Install Owner Furnished Seal Coat 2 Aggregate, FA-2 Granite 1,213 Ton $ 8.00 $ 9,704.00 $ 23.25 $ 28,202.25 $ 20.00 $ 24,260.00 3 Traffic Control 1 Lump Sum $ 2,000.00 $ 2,000.00 $ 5,200.00 $ 5,200.00 $10,800.00 $ 10,800.00 Subtotal 3 $ 51,419.20 $ 60,588.25 $ 67,210.40 Grand Total $ 119,094.24 $ 136,868.45 $ 158,155.48 I hereby Certify that this is an accurate representation of the bids opened on May 18,2005 ~re '~ ...-/ C?___c:> EXHIBIT A Larry Brown, PE City Engineer . . CITY OF SHOREWOOD MEMORANDUM 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (952) 474-0128' www.cLshorewood.mn.us' cityhall@cLshorewood.mn.us TO: Mayor and City Council Craig Dawson, City Administrator FROM: Larry Brown, Director of Public Works DATE: May 18, 2005 . RE: Setting Date for Public Information Meeting for the Wedgewood Drive!Mallard Lane/Teal Circle Roadway Improvement Project Staff has conducted public informational meetings and provided opportunities for comment for the Wedgewood Drive/Ma1lard Lane/Teal Circle Roadway Improvement Project. . The intent of the project was to determine the following items: . Should city water be extended along these routes? . Should the roadway be reclaimed and overlaid~ or reconstructed with the addition of curb and gutter and storm sewer. . The first issue has been answered. There has been little interest in extending municipal water service along this route. The remaining issue is with regard to whether the project involves pavement reclamation (i.e. recycling the existing pavement and rock) with a 3-inch overlay; or whether to reconstruct the roadway and add curb and gutter and storm sewer. To date, there has not been a consensus reached on this issue. The polls taken have resulted in a fairly even split on what should be done. Thus, the project has stalled for lack of direction. Therefore, staff has proposed a preliminary design, based upon curb and gutter. Certainly, there are many opinions and recommendations as to whether curb and gutter, rain gardens, or a simple ditch is the best alternative. Having stated this, without resolution of this issue, this project will remain on the CIP with little progress. Staff is recommending that yet one more public information meeting be conducted to present the preliminary design, as proposed. . Recommendation Staff is recommending that a public information meeting be conducted on June 9,2004, at 6:00 p.m. to 7:30 p.m., for the Wedgewood Dri-..&. Mallard Lane and Teal Circle Project. ~~ PRINTED ON RECYCLED PAPER 1r ,3 G- . . 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: City Council FROM: Craig W. Dawson, City Administrator cb May 19, 2005 . DATE: SUBJECT: Contribution by Shorewood Parks Foundation . The Shorewood Parks Foundation plans to present a $6,000 check to the city Council at the May 23 Council meeting. These funds come largely from the proceeds of the Foundation's third annual "Art for the Parks" show held late in 2004. This contribution is being made as part of the Foundation's commitment to provide $100,000 over ten years to the construction of Eddy Station in Freeman Park. Although fundraising has been on a pace that achieves the commitment in ten years, the Foundation intends to fulfill its commitment of $100,000. . . ~ It n '-~ PRINTED ON RECYCLED PAPER CITY OF SHOREWOOD P ARK COMMISSION MEETING TUESDAY, MAY 10, 2005 5755 COUNTRY CLUB ROAD CITY HALL 7:00 P.M. . MINUTES DRAfT 1. CONVENE PARK COMMISSION MEETING Chair Davis called the meeting to order at 7:04 p.m. A. Roll Call Present: Chair Davis, Commissioners Young, Famiok, Westerlund, and Wagner; City Engineer Brown Absent: Commissioners Meyer and Moonen; and City Council liaison Lizee B. Review Agenda . Items #5 and #6 were addressed in reverse order. Wagner moved, Westerlund seconded, approving the Agenda as amended. Motion passed 5/0. 2. APPROVAL OF MINUTES . A. Park Commission Meeting Minutes of April 12, 2005 Westerlund moved, Young seconded, approving the Minutes of the April 12, 2005, Park Commission Meeting as presented. Motion passed 5/0. 3. MATTERS FROM THE FLOOR There were none. . 4. REPORTS A. Report on City Council Meeting of April 25, 2005 and May 9, 2005 Brown reported that the rehabilitation of the well building at Badger Park was put to bid and would be paid for out of the water fund. Wagner asked whether the construction would impact sports organizations. Brown indicated that the only impact would be that a construction trailer would be parked in some of the hockey spots during construction. On May 9th, the City Council discussed past public information meetings regarding potential traffic changes at Radisson Road, near Christmas Lake Road. While it will remain two-way traffic for now, Brown pointed out that further thought would need to be given to making it more pedestrian friendly. B. Update on Concessions . Brown reported that Mr. Withum, the new concessionaire, was up and running for a flat fee of $1,20Q, plus $100 per tournament. The City was looking forward to a successful and long-term relationship with the new vendor. 'ff14 PARK COMMISSION AGENDA TUESDAY, MAY, 10, 2005 PAGE20F2 C. Update on Music in the Park . Brown reported that members of the City Council donated $300, which the City will match. This, added to the $2,000 budgeted for Music in the Parks and a $500 donation from the Park Foundation, the Commission will be near its estimated $3,200 expenditure for the event. 6. DISCUSS CAPITAL IMPROVEMENT PROGRAM FOR PARKS Chair Davis asked where the money for CIP is kept and whether it could be tapped for pond projects or trail extensions. Brown stated that CIP improvements are laid out in the 5 year plan which is a part of the master plan and is scheduled to be updated this year to cover the next 5 years. He pointed out that the City Council has earmarked $10,000 per year for CIP small park improvements, though the Commission has already spent an estimated $14,000 for the skate park improvements. Chair Davis pointed out that $14,000 for the skate park was higher than first anticipated. Brown stated that due to fuel costs, labor, and material costs the price tag had gone up. With regard to the overlay of the skate park surface, Brown stated that Mr. Burry, of Midwest Asphalt Company, has promised to get back to him soon. . Wagner moved, Westerlund seconded, to proceed with the purchase and placement of the skate park equipment, and once the City has evaluated the need for the overlay to do so. Motion passed 5/0. Chair Davis asked whether the initial $8,000 budgeted for the equipment last year would be taken out oflast year's budget as it was slated, or this year's budget. . Brown pointed out that the CIP is a fluid document which can be amended before the City Council to complete worthwhile projects. Wagner inquired who manages the CIP fund balance, noting that it appeared the interest rate was . merely 1 % on an amount this size. Brown stated that Finance Director Burton, with input from investment advisors, manages the fund. Westerlund asked why the city had declined adding additional park space in lieu of dedication fees. Brown stated that the City had been accepting dedication fees instead of land based on a referendum put before the citizens 12 years ago which indicated they were satisfied with the amount of dedicated park land. Chair Davis suggested the City consider revisiting this from the standpoint of land preservation and passive park use. Brown pointed out that there are few lots left to be developed in Shorewood; therefore, little funding has been available to make improvements until now based on these few remaining developments such as Cub Foods. Brown cautioned the Commission that, from a construction standpoint, the CIP fund was not significant. . Wagner suggested the Commission or City begin to investigate alternate sources of funding. PARK COMMISSION AGENDA TUESDAY, MAY, 10, 2005 PAGE30F2 . Brown concurred, encouraging the Commission to take the charge of finding alternate funding, or partners for projects like the water rehab project. 5. REVIEW MASTER PLAN While a review of the master plan or Comp Plan should be done in conjunction with the CIP, Brown asked for comment from the Commission. Westerlund requested additional time to review the master plan, just handed to her this evening, and compare it to the CIP before discussing individual parks this evening. Young suggested the master plan be broken into pieces for ease of evaluation. . Westerlund suggested the Commission discuss the CIP with regard to each park on the tour, i.e. Manor, Silverwood, and Freeman, following the park tour itself. Westerlund reported that she had contacted Mr. Osgood, a renowned limnologist, to join the Commission at Manor Park, though he was unable to attend a staffmernber of the MCWD volunteered to join the Commission the night of the tour. Young commented that it would be advantageous to have an 'expert' on hand at Manor Park to discuss the options or recommendations for the pond. . Brown summarized the Commission's desire to spend more time evaluating the CIP and Master Plan in light of the budget, consider dates for the next park tour and which parks would be evaluated from the Master Plan next. Wagner pointed out that it would be useful to be given a list of maj or rehab proj ects slated within the next 5 years as they evaluate the CIP. Brown noted that major updates are done every 10 years with the development of the new comp . plan, estimated for 2008. Young stated that he would like to see updates of designated deficiencies inserted into the master plan packet, with dates, following each tour to determine what has changed from year to year with regard to improvements and the CIP. Chair Davis agreed. A. Role of Horticulture and Tree Inventory Chair Davis pointed out that the role of horticulture and a tree inventory should be considered as part of the Master Plan. . Brown stated that the sample tree inventory supplied by Chair Davis brought two questions to light, first, what does the Park Commission wish to achieve by performing a tree inventory and why, and what goals would the Commission like to achieve. Chair Davis indicated that she would be interested in determining where the public stood with regard to active versus passive use. She questioned whether the residents value active use, parks, open space, trees, or what people's attitudes might be. Davis felt people have a desire to protect the City's assets, the open spaces, old woods, etc. as part of the bigger picture. PARK COMMISSION AGENDA TUESDAY, MAY, 10, 2005 PAGE40F2 Wagner stated that the public is well aware that buckthorn is a nuisance and should be informed or taught how to get a handle on it. . Although tree inventories are expensive and time consuming, Brown pointed out that, with new technology, there might be an opportunity to incorporate a GPS unit that staff could use for dual purposes, and perform the survey work themselves. Westerlund agreed that a formal tree inventory would be over the top for the cities needs; however, if the Commission could identify a good stand of trees within one of the parks, via aerial photos the Commission could make a recommendation of what the City has and what is worth preserving. Westerlund viewed the inventory as an opportunity for restoration, habitat preservation, hazardous tree identification, and health of current trees. Wagner stated that he liked the idea of educating people, on a small scale, as to the value of a stand of trees or species and showing them an example within one of the parks. Brown asked Westerlund to forward him the name of someone who he could talk to about this process and the cost for performing a small scale inventory. . Famiok stated that it would be relevant to get more detail of what is in Shorewood's parks to aid the Commission in making a judgment of what should be added or preserved. Chair Davis questioned Brown whether he knew if Gideon Glen would become one of the responsibilities of the Park Commission. Westerlund explained that the City, County, and MCWD have a cooperative agreement in place that indicates that the MCWD will be responsible for the planning and development of the trails and kiosks. The Park Commission, on the other hand, can be involved in the planning process of the interpretive signs and kiosks themselves. . Young asked what the timeline for completion was. Westerlund stated that in a year the project should be complete and should consist of three parts, the stormwater pond with a grid chamber, wetland restoration, and a maple basswood forest preservation project. . Chair Davis reiterated her question whether the park would become part of the Commission stewardship and/or if the project would come with an endowment of sorts. Brown stated that those answers were unknown to date. Wagner stated that the real question is how the public will perceive the Gideon Glen area. If it appears to be seen as one of the City parks, then the Commission should have a hand in its stewardship. Brown noted that Gideon Glen would take a few years to be established and would be overseen in the process by several organizations, as the educational and preservation components intermingle. He pointed out that a tree inventory would be key to planning in this case to identify what is present and where it should be headed. . PARK COMMISSION AGENDA TUESDAY, MAY, 10, 200S PAGESOF2 . B. Education on Buckthorn Control and Eradication Since Buckthorn is a community wide problem, Brown stated that it would be beneficial to choose a central location, like a park, where a buckthorn removal program could be instigated for educational purposes, as well as, for beautification. Wagner pointed out that a combination of a tree inventory and buckthorn removal program would be a worthwhile endeavor for the Commission to pursue. Farniok suggested developing an ongoing proactive plan to go after the buckthorn, by providing 'weed wrenches' to the public, and an education campaign. . Brown pointed out that the city of St. Paul has hit buckthorn on many fronts, including a public education program, providing the tools to remove it, sponsoring buckthorn busting parties, etc. he suggested staff review its education pieces and potentially order some weed wrenches and report back. Famiok encouraged the Commission to choose a visible park, like Freeman, to begin. Target key dates in the fall, following the educational component over the summer, and host a busting party, which would then be followed up by incorporating removal into the spring clean-up campaign next year. . Chair Davis concurred, stating that it would be a good fit for spring clean-up, or as an incentive, the City could volunteer to take the removed buckthorn away. Brown felt a buckthorn removal and education program would be a nice compliment to the save our valuable trees, as discussed earlier. C. Explore Methods to Reduce Vandalism within the Parks Via Work Session and Information From MN Rec & Park Assoc. . Chair Davis stated that the gross damage amount of $11 ,000 was an incredibly high cost to the citizens due to vandalism. Brown stated that he had not had an opportunity to compile a great deal of data from other communities of what they've done to deter vandalism. He commented that it is nice the senior community near Freeman keeps a watchful eye on activity there and reports incidents immediately. While the cameras at Freeman have created some awareness and deterred some vandalism, he would assemble more information to report at a future meeting. Since cameras had been somewhat effective at Freeman, Wagner suggested that the City consider installing decoy cameras at other key locations. 7. DETERMINE LIAISON FOR JUNE CITY COUNCIL MEETINGS May - Young June 27 - Chair Davis . 8. NEW BUSINESS Farniok asked whether the deer population was a park problem or even a city problem worthy of discussion at some future date. PARK COMMISSION AGENDA TUESDAY, MAY, 10,2005 PAGE 6 OF2 Brown stated that deer were not a park issue, nor did the City Council wish to address managing the deer herd population. . Wagner asked what the status of some of the new park signs was. Brown stated that both the custom and non-custom designs had been approved, a vendor chosen, and installation would occur soon. The Commission agreed that new signs at the park entrances would be replaced as necessary; however, the rules and directionals would be posted immediately. Chair Davis brought up an issue regarding a joggers complaints regarding sediment along Lake Linden. Brown reported that he had spoken to this individual many times. While there is little that can be done other than deepening the v-ditch near the trail, the resident continues to pursue the matter in an attempt to get the answer he desires, with little regard to the impacts further changes would . have on nearby residences. 9. ADJOURN Wagner moved, Westerlund seconded, adjourning the Park Commission Meeting of May 10,2005 at 9:17 p.m. Motion passed 5/0. RESPECTFULLY SUBMITTED, . Kristi B. Anderson Recording Secretary . . . . . . . CITY OF SHOREWOOD PLANNING COMMISSION MEETING TUESDAY, 3 MAY 2005 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. MINUTES CALL TO ORDER Chair Bailey called the meeting to order at 7:00 P.M. ROLLCALL Present: Chair Bailey; Commissioners Gagne, Gniffke, Meyer, and White; Council Liaison Callies and Planning Director Nielsen Absent: Commissioner Conley APPROVAL OF MINUTES · 19 April 2005 Gagne moved, White seconded, Approving the April 19, 2005, Planning Commission Meeting Minutes as presented. Motion passed 5/0/1, with Woodruff abstaining due to absence at that meeting. 1. 7:00 P.M. PUBLIC HEARING - C.U.P. FOR ACCESSORY SPACE OVER 1200 SQ. FT. Applicant: Paul and Sheryl Gilbertson Location: 26055 Smithtown Lane Chair Bailey opened the Public Hearing at 7:03 P.M., noting the procedures utilized in a Public Hearing. He also stated any items recommended for approval would be placed on the May 23, 2005, Regular City Council Meeting Agenda. Director Nielsen explained Paul and Sheryl Gilbertson applied for a conditional use permit to construct a detached screen porch on their property, located at 26055 Smithtown Lane. The floor area of the screen porch, when combined with the Gilbertsons' existing detached garage and an existing utility shed brought the total area of accessory space on the property over 1200 square feet. The property was zoned R-1 C, Single-Family Residential and contained approximately 48,029 square feet of area. He also stated the existing house contained approximately 1904 square feet of floor area on two floors above grade. The existing garage, located south of the house, on the west side of the lot, contained 864 square feet of floor area. The utility shed was tucked into the wooded area on the east side of the rear of the lot, and contained 168 square feet. The new screen porch will be located in the rear yard, south of the existing garage. It measured 20' x 24' and contained 480 square feet, which brought the total area of accessory space on the site to 1507 square feet. He also noted the Gilbertson's had originally wanted to attach the screen porch to their house; however, there was a mature tree in the backyard that would have been disturbed as a result. Director Nielsen noted the request complied with all criteria associated with the City's Zoning Code, and Staff recommended approval. . Sheryl Gilbertson stated their original intent was to attach the porch to the house, however, the mature tree was approximately thirty feet in diameter, and would have required substantial complications. She also Chair Bailey closed the Public Testimony portion of the Public Hearing at 7:08 P.M. The Commission had no questions related to this case. Meyer moved, Gniftke seconded, Recommending Approval of a Request for a Conditional Use Permit for Accessory Space over 1200 Square Feet for Paul and Sheryl Gilbertson, 26055 Smithtown Lane. Motion passed 6/0. The Commission agreed to select Council Liaisons at this time and hear the report on the most recent Regular City Council meeting, given that the next Public Hearing could not yet take place. Council Liaisons were selected as followed: May 23 and June27 May 9 and June 13 July August September October Commissioner White Commissioner Gagne Commissioner Meyer Commissioner Woodruff Commissioner Gniffke Commissioner Conley . The Commission agreed the remainder ofthe months would be determined in the future. . In the absence of Commissioner Conley, Chair Bailey reported on the April 25, 2005, Regular City Council meeting (as detailed in the minutes of that meeting). 2. 7:15 P.M. PUBLIC HEARING - C.U.P. FOR ACCESSORY SPACE OVER 1200 SQ. FT. Applicant: Clark Kent Homes Location: 5835 Eureka Rd Chair Bailey opened the Public Hearing at 7: IS P.M. . Director Nielsen explained Clark Kent Homes recently completed a new home at 5835 Eureka Road and had now applied for a conditional use permit to construct a detached garage that put the property in excess of 1200 square feet. The new garage would be located in the northeast comer of the site. He went on to state the property was zoned R-IA, Single-Family Residential and contained 1.5 acres ofland. He also noted the site was occupied by the new home and attached garage. The new detached garage contained 576 square feet. Combined with the existing garage, the amount of accessory space on the site would then total 1436 square feet. The new home contained 3700 square feet of floor area, divided between two of the floors above grade. Director Nielsen also explained that while the proposed pool on the site was not part of this request, it was slated for construction and would be allowed on the site since the hardcover requirements were met. Director Nielsen noted the applicant was not yet present this evening. Seeing no one present wishing to speak on this matter, Chair Bailey opened and closed the Public Hearing . at 7:20 P.M. PLANNING COMMISSION MEETING MINUTES May 3, 2005 Page 3 of 3 . In response to Commissioner Gagne's question, Director Nielsen explained the builder was working with the adjacent neighbor to add a drain tile system in near the northern property line. White moved, Woodruff seconded, Recommending Approval for a Request for Conditional Use Permit for Accessory Space for Clark Kent Homes, 5835 Eureka Rd. Motion passed 6/0. 3. DISCUSS SIGN REGULATIONS Director Nielsen explained this discussion would take place at the next Planning Commission meeting. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. DRAFT NEXT MEETING AGENDA . Director Nielsen stated a discussion on the sign regulations for the City was slated for the May 17,2005, Planning Commission Meeting Agenda. 6. REPORTS · Liaison to Council . This report was given prior to Item 2. · SLUC Director Nielsen stated the topic for the Sensible Land Use Coalition meeting to be held on May 25,2005, would be The Future Northstar Commuter Rail. Any Commissioners interested in attending were encouraged to let Director Nielsen know as soon as possible. . · Other None. 7. ADJOURNMENT Gagne moved, Gniftke seconded, Adjourning the May 3, 2005, Planning Commission Meeting at 7:27 P.M. Motion passed 6/0. RESPECTFULLY SUBMITTED. Sally Keefe Recording Secretary . 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: Planning Commission, Mayor and City Council FROM: Brad Nielsen . DATE: 28 April 2005 RE: Gilbertson, Paul and Sheryl- C.D.P. for Accessory Space in Excess of 1200 Square Feet FILE NO.: 405 (05.08) . BACKGROUND . Paul and Sheryl Gilbertson have applied for a conditional use permit to construct a detached screen porch on their property, located at 26055 Smithtown Lane (see Site Location map - Exhibit A, attached). The floor area of the screen porch, when combined.with the Gilbertsons' existing detached garage and an existing utility shed brings the total area of accessory space on the property over 1200 square feet. The property is zoned R-1C, Single-Family Residential and contains approximately 48,029 square feet of area. Exhibits B and C show the location ofthe existing buildings and the proposed screen porch. The existing house contains approximately 1904 square feet of floor area on two floors above grade. The existing garage, located south of the house, on the west side of the lot, contains 864 square feet of floor area. The utility shed is tucked into the wooded area on the east side of the rear of the lot, and contains 168 square feet. The new screen porch (see Exhibit D) will be located in the rear yard, south of the existing garage. It measures 20' x 24' and contains 480 square feet, which brings the total area of accessory space on the site to 1507 square feet. ANAL YSIS/RECOMMENDATION . Section 1201.03 Subd.2.d.(4) of the Shorewood Zoning Code contains four specific criteria for granting this type of conditional use permit. Following is how the applicants' proposal complies with the Code: #tr '0..1 PRINTED ON RECYCLED PAPER #8.A. . . . . . Memorandum Re: Gilbertson C.D.P. 28 April 2005 a. The total area of accessory space (1507 square feet) does not exceed the total floor area above grade of the principle structure (1904 square feet). b. The total area of accessory space does not exceed ten percent of the minimum lot area for the R-1C zoning district (.10 x. 20,000 square feet = 2000 square feet). c. The proposed garage and the existing house comply with the setback requirements of the R-1C zoning district. The new porch will be approximately 50 feet from the west side of the property and approximately 155 feet from the rear of the lot. Given the size of the property and the amount of existing vegetation on the site, drainage and landscaping are not considered to be issues in this request. d. As shown on Exhibit D, the materials and design of the new screen porch will be consistent with the character of the existing house and garage. In light of the preceding, the applicants' request is considered to be consistent with the requirements of the Shorewood Zoning Code. 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A RESOLUTION GRANTING A CONDITIONAL USE PERMIT FOR ADDITIONAL ACCESSORY SPACE TO PAUL AND SHERYL GILBERTSON WHEREAS, Paul and Sheryl Gilbertson (Applicants) are the owners of real property located at 26055 Smithtown Lane, in the City of Shorewood, County of Hennepin, legally described as: "That part of Lot 96, Auditor's Subdivision No. 133, lying east of the west 100 feet thereof'; and WHEREAS, the Shorewood City Code requires a Conditional Use Permit for the construction of accessory space exceeding 1200 square feet; and WHEREAS, the Applicants have applied to the City for a Conditional Use Permit for the construction of a detached screen porch which will have approximately 480 square feet; and WHEREAS, the Applicants' request was reviewed by the City Planner, and his recommendations were duly set forth in a memorandum to the Planning Commission dated 28 July 2005, 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 their regular meeting on 3 May 2005, the minutes of which meeting are on file at City Hall; and WHEREAS, the Applicants' request was considered by the City Council at their regular meeting on 23 May 2005, at which time the Planner'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 1. The total area of accessory space (1507 square feet) does not exceed the floor area above grade of the principal structure (1904 square feet on the main level alone). 2. The Applicants' lot contains approximately 48,029 square feet of area, and that the total area of accessory space on the property will not exceed 10% of the minimum lot area for the R-1A Zoning District in which it is located (4,000 square feet). -1- . 3. The design and materials ofthe garage are compatible with the architectural character of the existing home. 4. The proposed garage complies with all setback requirements for the R-1A District. CONCLUSION a. That the application of Paul and Sheryl Gilbertson for a Conditional Use Permit as set forth herein above be and hereby is granted. b. That this approval is subject to the following: 1. The proposed accessory structure will be used strictly for purposes of a residential nature. 2. The Applicant is hereby advised that the City Code provides specific regulations relative to home occupations and any future use of the structure for other than allowable residential purposes would have to comply with such regulations. . c. That the City Administrator/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 Shore wood this 23rd day of May 2005. Woody Love, Mayor . ATTEST: Craig W. Dawson, City Administrator/Clerk . -2- 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: Planning Commission, Mayor and City Council FROM: Brad Nielsen . DATE: 28 April 2005 RE: Clark Kent Homes- c.u.P. for Accessory Space in Excess of 1200 Square Feet FILE NO.: 405 (05.09) . BACKGROUND Clark Kent Homes recently completed a new home at 5835 Eureka Road (see Site Location map - Exhibit A, attached). They have now applied for a conditional use permit to construct a detached garage that puts the property in excess of 1200 square feet. The new garage will be located in the northeast comer of the site as shown on Exhibit B. . / The property is zoned R -lA, Single-Family Residential and contains 1.5 acres of land. As shown on Exhibit B the site is occupied by the new home and attached garage. The new detached garage contains 576 square feet. Combined with the existing garage, the amount of accessory space on the site will total 1436 square feet. Plans for the new garage are illustrated on Exhibit C, attached. The new home contains 3700 square feet of floor area, divided between two of the floors above grade. ANAL YSIS/RECOMMENDATION Section 1201.03 Subd. 2.d.(4) of the Zoning Code prescribes criteria for granting conditional use permits for accessory space over 1200 square feet. Following is how the applicant's plans comply with the Code: a. The total area of accessory buildings (1436 square feet) does not exceed the proposed . floor area (3700 square feet) above grade of the existing home. ft '-~ PRINTED ON RECYCLED PAPER # 8. B. . . .0 . . Memorandum Re: Clark Kent Homes - CUP 28 April 2005 b. The total area of accessory buildings does not exceed 10 percent of the minimum lot size for the R-IA zoning district (.10 x 40,000 = 4000 square feet). c. The proposed garage complies with R-IA setback requirements. Hardcover on the property is well under 33 percen~ (approximately 20%, including a proposed pool). d. The architectural character of the new building will be the same as the existing house. Siding and roofing will match the house. Based upon the preceding analysis, it is recommended that the applicant's request fora conditional use permit be granted. cc: Craig W. Dawson Tim Keane Joe pazandak Jim Clark -2- ~ 1M \'-- '- '--- ~ \ I '-J-J 17:-- ~.~ - ~ ~ _ ~ ~ - ---Ylyl/ /I'.J - ~ <- Hl f= lM _ ~ \ / ~--.J ,,~ lAY I __ _ ~ - I r- -<r"--., ~ rn _ ~f I ~.-. 1-..- 'f-\ -----0::::::J;F = -7" I / L 1I I - I ~_% / 'l I I I 1-- r7 / I ~' /'-.J)/ / L .EfEB i .1 ~~A~__ !II~TJ ~: \ .:::1 /~E 7 .! ~OOOMm ~ ""\ - ---.1 1- m_ _ ~\IZ~~~"\\~1 ~~\U\\ ~~ f,- ~ r' 1J~ ...... - ~ ' \~b -~ \ \ '\ - I I -- L~ " ~ffi i ~EE '" '" ~ '" '" '" L---' '" '" ~~ /~ c -i - laa::l' ooo'~ - - --.J ~ - -' - ....omo Qg ~ -~ E ID .. 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';s ( (~ Exhibit B \) ~ SITE SURVEY r-J \J.~ \ \J ...i ., ~~ iEi ~:x: .. to . . . ~'t; . i j I ~ ... ~ i5 Ci) I I I I I I I I I I I I I , , I I I I -, to .o-,~ = .W~ ~ 1 , , , , 1 I I I , I I , t... ... ~~ iE~ ~ij II .o-,~ ",Jill I , I I I , I , I I I I I I I I I I I I -' .o..~ = .W~ ~ I I , I , I , , , I 1 I I I .o-,~ = .W~ Exhibit C PROPOSED GARAGE t CITY OF SHOREWOOD . RESOLUTION NO. A RESOLUTION GRANTING A CONDITIONAL USE PERMIT FOR ADDITIONAL ACCESSORY SPACE TO CLARK KENT HOMES WHEREAS, Clark Kent Homes, Inc. (Applicant) is the owner of real property located at 5835 Eureka Road, in the City of Shorewood, County of Hennepin, legally described as: "The south 122/3 rods of Lot 3, Meekers Outlots to Excelsior, Hennepin County, Minnesota"; and WHEREAS, the Shorewood City Code requires a Conditional Use Permit for the construction of accessory space exceeding 1200 square feet; and . WHEREAS, the Applicant has applied to the City for a Conditional Use Permit for the construction of a detached garage which will have approximately 576 square feet; and WHEREAS, the Applicant's request was reviewed by the City Planner, and his recommendations were duly set forth in a memorandum to the Planning Commission dated 28 April 2005, 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 their regular meeting on 3 May 2005, the minutes of which meeting are on file at City Hall; and . WHEREAS, the Applicant's request was considered by the City Council at its regular meeting on 23 May 2005, at which time the Planner'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 RESOL YED by the City Council of the City of Shorewood as follows: FINDINGS OF FACT 1. The total area of accessory space (1436 square feet) does not exceed the floor area above grade of the principal structure (3700 square feet). 2. The Applicant's lot contains approximately 1.5 acres, and the total area of accessory space on the property will not exceed 10% of the minimum lot area for the R-1A Zoning District in which it is located (4,000 square feet). . 3. The design and materials ofthe garage are compatible with the architectural character of the existing home. 4. The proposed garage complies with all setback requirements for the R-1A District. -1- . . . . . CONCLUSION a. The application of Clark Kent Homes, Inc. for a Conditional Use Permit as set forth herein above be and hereby is granted. b. This approval is subject to the following: 1. The proposed garage will be used strictly for purposes of a residential nature. 2. The Applicant is hereby advised that the City Code provides specific regulations relative to home occupations and any future use ofthe garage for other than allowable residential purposes would have to comply with such regulations. c. That the City Administrator/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 Shore wood this 23rd day of May 2005. Woody Love, Mayor ATTEST: Craig W. Dawson, City Administrator/Clerk -2- . . 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: May 19, 2005 To: Honorable Mayor and City Council Members n Bonnie Burton, Finance Director/Treasurer~ From: Cc: Sale of Bonds: General Obligation Water Revenue Bonds 2005A Craig Dawson, City Administrator rJs;> . Re: . The City's bond consultant, Paul Donna, of Northland Securities, will be at the May 23 City Council meeting to present the results of the 2005 G.O. Water Revenue Bond sale. Council will recall the proceeds from this bond issue will be used to fund needed improvements to the municipal water system. These improvements include: Badger Well House Construction; Water Tower Refurbishments; Woodhaven Well connection; Water Meter Radio Read project; and the Aimsbury project. A sample resolution is attached for your review. Paul will provide the details on Monday following the bond sale. Also attached for your review is a copy of the Moody's Investor Services report showing that they have assigned a bond rating to this sale of AA3. Concurrently, Moody's has affirmed the Aa3 rating on the City's outstanding debt. Council will recall the City's bond rating was upgraded from Al to Aa3 in July 2003. Prior to that, the last time the City's bond rating was upgraded was November, 1993. Recommended Council Action . Staff recommends adoption ofthe Resolution Awarding the Sale of 2005 G.O. Water Revenue Bonds, as presented by Bond Consultant Paul Donna, of Northland Securities. ft ~.1 PRINTED ON RECYCLED PAPER /- CfA Bonnie Burton From: Sent: To: Subject: Moody's Investors Service [epi@moodys.com] Tuesday, May 17, 2005 3:11 PM Bonnie Burton Shorewood (City of) MN . MOODY'S ASSIGNS Aa3 RATING TO SHOREWOOD (MN) $1.5 MILLION GO WATER REVENUE BONDS, SERIES 205A RATING AFFIRMATION AFFECTS $2.7 MILLION OF PARITY DEBT, INCLUDING CURRENT ISSUE Shorewood (City of) MN Municipali ty Minnesota Moody's Rating Issue . General Obligation Water Revenue Bonds, Series 2005A Sale Amount $1,525,000 Expected Sale Date OS/23/05 Rating Description General Obligation Unlimited Tax NEW YORK, May 17, 2005 -- Moody's Investors Service has assigned a Aa3 rating to the City of Shorewood (MN) $1.5 million General Obligation Water Revenue Bonds, Series 2005A. Concurrently, Moody's has affirmed the Aa3 rating on the city's outstanding parity debt, affecting $2.7 million, including the current issue. The bonds are secured by the . unlimited tax pledge of the city, although debt service is expected to be supported by ne revenues from the city's water utility. Proceeds will finance the reconstruction of a well house facility, painting of a water tower, and various other improvements to the City's water system. The Aa3 rating reflects the city's mature economy with affluent wealth levels and healthy tax base growth; strong financial operations characterized by healthy reserve levels; and average debt levels. MATURE AND WEALTHY COMMUNITY EXPERIENCES HEALTHY TAX BASE GROWTH Located about 15 miles west of the Minneapolis (Aal)/St. Paul (Aa2) region along the . southern shore of Lake Minnetonka, Shorewood is a mature community with limited availabl land for taxbase growth. City officials report most of the taxbase's average annual growth of 11.1% in recent years is due to natural appreciation of existing properties and the replacement of older residential properties with larger, more valuable, homes - particularly along the lakefront. Moody's believes the taxbase will continue to grow due to natural appreciation of housing stock and the City'S desirable lakefront location and proximity to the Twin Cities. The city displays very strong wealth indices with a per capita income of $44,425 (191.5% of state average) and a median family income of $104,100 (183% of state average). Full value per capita is very healthy at $159,076, and the City's fiscal 2005 full valuation is nearly $1. 2 billion. STRONG FINANCIAL OPERATIONS CHARACTERIZED BY AMPLE RESERVES Moody's expects the city to maintain stable financial operations due to a history of conservative budgeting, characterized by the maintenance of healthy reserves, as well as the lack of reliance on state aid. Following an operating surplus of $338,000, the city ended FY 2003 with a General Fund balance of $2.5 million, or a very healthy 68.3% of General Fund revenues. District official expect. audited fiscal 2004 figures will show an increase in General Fund reserves in keeping wi prior years. An additional source of revenue is the city's liquor fund, which ended fiscal 2003 with a fund balance of $698,000. The City's water utility has successfully achieved a series of rate increases since 2002, raising rates from $1.50 per 1,000 gallons with a $25 1 monthly charge to $2.95 per 1,000 gallons with a $35 monthly charge. AVERAGE DEBT BURDEN AND LIMITED CAPITAL NEEDS eOOdY's expects the city's debt burden to remain manageable given expected ongoing tax ase growth and limited capital needs. The city's overall debt burden is moderate at 2.6%, with approximately half due to the direct borrowing of the city (direct debt 1.3%). In the longer term, the city may borrow for a new city hall in three to five years, though the exact par value of such a bond issue has not been determined. Payout of outstanding obligations is below average with 44.7% of principal retired in ten years. KEY STATISTICS 2000 population estimate: 7,400 2003 full value: $1.2 billion Full value per capita: $159,076 Debt burden: 2.6% (1.3% direct) Payout of principal (10 years): 44.7% FY 2003 General Fund balance: $2.5 million (68.3% of General Fund revenues) t1aedian Family Income (as percentage of state): 183.0% Per Capita Income (as perce~tage of state): 191.5% ANALYSTS: Shawn O'Leary, Analyst, Public Finance Group, Moody's Investors Service Jonathan North, Backup Analyst, Public Finance Group, Moody's Investors Service .ONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Copyright 2005, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved. ~L INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH ~NFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use .Of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY 2 NORTHLANDOSECURITIES 45 South 7th Street Suite 2500 Minneapolis, MN 55402 (800) 851-2920 (612) 851-5900 Fax (612) 851-5918 E X T ERN A L MEMORANDUM DATE: April 19, 2005 TO: Mr. Craig Dawson, Administrator Ms. Bonnie Burton, Finance Director City of Shorewood FROM: Paul Donna, Senior VP Northland Securities RE: Municipal Water System Project Financing Craig and Bonnie - Attached please find a 15-year and 20-year general obligation water revenue bond structure to finance the water system improvements. Based on a memo dated January 20, 2005 from Mr. Larry Brown, each scenario assumes the City requires $1,471,500 for project costs. To that cost we have added the estimated financing costs. Page 1 of each analysis illustrates the estimated sources and uses for the financing. Page 2 of each analysis illustrates the estimated debt service schedule using current interest rate levels. The average interest rate is estimated at 3.93% on the 15-year scenario and 4.17% on the 20- year scenario. With the exception of the first year, the annualized payments are estimated to be $136,000 and $111,000 respectively. The first year's payment has been structured to be within the City's pay 2005 budget of $109,000. Page 4 of each analysis illustrates all of the debt service the water system is responsible for including the City's 1995A Bonds, 1996A Bonds, 2003 Refunding Bonds and this issue. Each scenario has been structured to achieve level annualized debt service payments. We prepared a "wraparound" scenario whereby this issue is structured to wraparound the existing debt payments of the system for the purpose of leveling the total annual debt service payments. We reviewed this scenario with Ms. Burton and agreed it was not effective because of the added interest cost due to the large amount of principal being delayed. We would recommend the City consider the 20-year scenario given the very low cost of borrowing and added flexibility it allows the City. I hope this information is helpful. Please call me if you have any questions. (fL.P. IJJthV~ . . . . . . . . . . $1,525,000.00 City of Shorewood, Minnesota General Obligation Water Revenue Bonds, Series 2005A I (20-Year Scenario) Table of Contents Report Sources & Uses Debt Service Schedule 2 Net Debt Service Schedule 4 2004 Waler Revenue Bonds I SINGLE PURPOSE I 4119/2005 I 10:34 AM Northland Securities Public Finance Preliminary $1,525,000.00 City of Shorewood, Minnesota General Obligation Water Revenue Bonds, Series 2005A I (20-Year Scenario) . Sources & Uses Dated 06/01/20051 Delivered 06/01/2005 SOURCES OF FUNDS Par Amount of Bonds $1,525,000.00 TOTAL SOURCES $1,525,000.00 USES OF FUNDS Total Underwriter's Discount (1.500%) Costs of Issuance Deposit to Project Construction Fund Rounding Amount 22,875.00 27,300.00 1,471,500.00 3,325.00 TOTAL USES $1,525,000.00 . . . 2004 Water Revenue Bonds I SINGLE PURPOSE I 4/i9/2005 I 10:34 AM . Northland Securities Public Finance Page 1 Preliminary . $1,525,000.00 City of Shorewood, Minnesota . General Obligation Water Revenue Bonds, Series 2005A I (20- Y ear Scenario) Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 06/01/2005 01/01/2006 70,000.00 2.600% 34,686.46 104,686.46 104,686.46 07/01/2006 28,821.25 28,821.25 01/01/2007 55,000.00 2.800% 28,821.25 83,821.25 112,642.50 07/01/2007 28,051.25 28,051.25 01/01/2008 55,000.00 3.000% 28,051.25 83,051.25 111,102.50 07/01/2008 27,226.25 27,226.25 01/01/2009 60,000.00 3.150% 27,226.25 87,226.25 114,452.50 07/01/2009 26,281.25 26,281.25 01/01/2010 60,000.00 3.300% 26,281.25 86,281.25 112,562.50 07/01/2010 25,291.25 25,291.25 . 01/01/2011 60,000.00 3.450% 25,291.25 85,291.25 110,582.50 07/01/2011 24,256.25 24,256.25 01/01/2012 65,000.00 3.600% 24,256.25 89,256.25 113,512.50 07/01/2012 23,086.25 23,086.25 01/01/2013 65,000.00 3.700% 23,086.25 88,086.25 111,172.50 07/01/2013 21,883.75 21,883.75 01/01/2014 70,000.00 3.800% 21,883.75 91,883.75 113,767.50 07/01/2014 20,553.75 20,553.75 01/01/2015 70,000.00 3.900% 20,553.75 90,553.75 111 ,107.50 07/01/2015 19,188.75 19,188.75 . 01/01/2016 75,000.00 4.000% 19,188.75 94,188.75 113,377.50 07/01/2016 17,688.75 17,688.75 01/01/2017 75,000.00 4.100% 17,688.75 92,688.75 110,377.50 07/01/2017 16,151.25 16,151.25 01/01/2018 80,000.00 4.150% 16,151.25 96,151.25 112,302.50 07/01/2018 14,491.25 14,491.25 01/01/2019 85,000.00 4.200% 14,491.25 99,491.25 113,982.50 07/01/2019 12,706.25 12,706.25 01/01/2020 85,000.00 4.250% 12,706.25 97,706.25 110,412.50 07/01/2020 10,900.00 10,900.00 . 01/01/2021 90,000.00 4.300% 10,900.00 100,900.00 111,800.00 07/01/2021 8,965.00 8,965.00 01/01/2022 95,000.00 4.350% 8,965.00 103,965.00 112,930.00 07/01/2022 6,898.75 6,898.75 01/01/2023 100,000.00 4.400% 6,898.75 106,898.75 113,797.50 07/01/2023 4,698.75 4,698.75 01/01/2024 105,000.00 4.450% 4,698.75 109,698.75 114,397.50 07/01/2024 2,362.50 2,362.50 01/01/2025 105,000.00 4.500% 2,362.50 107,362.50 109,725.00 Total $1,525,000.00 $713,691.46 $2,238,691.46 . 2004 Water Revenue Bonds I SINGLE PURPOSE I 4/19/2005 I 10:34 AM Northland Securities Public Finance Page 2 Preliminary $1,525,000.00 City of Shorewood, Minnesota General Obligation Water Revenue Bonds, Series 2005A I (20- Y ear Scenario) . Debt Service Schedule Part2of2 Yield Statistics Dated Delivery Date First Coupon Date 6/01/2005 6/01/2005 1/01/2006 First available call date Call Price 1/01/2014 100.0000000% Bond Year Dollars Average Life Average Coupon $17,094.58 11.210 Years 4.1749567% Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) 4.3087711 % 4.3233117% 4.1450162% 4.5414672% . IRS Form 8038 Net Interest Cost Weighted Average Maturity 4.1749567% 11.210 Years . . 2004 Water Revenue Bonds I SINGLE PURPOSE I 4/19/2005 I 10:34 AM . Northland Securities Public Finance Page 3 Preliminary $1,525,000.00 . City of Shorewood, Minnesota General Obligation Water Revenue Bonds, Series 2005A I (20-Year Scenario) Net Debt Service Schedule Fiscal Date Principal Coupon Interest Total P+I Existing D/S Net New D/S Total 06/01/2005 01/01/2006 70,000.00 2.600% 34,686.46 104,686.46 244,275.00 348,961.46 348,961.46 07/01/2006 28,821.25 28,821.25 28,821.25 01/01/2007 55,000.00 2.800% 28,821.25 83,821.25 234,130.00 317,951.25 346,772.50 07/01/2007 28,051.25 28,051.25 28,051.25 01/01/2008 55,000.00 3.000% 28,051.25 83,051.25 223,625.00 306,676.25 334,727.50 07/01/2008 27,226.25 27,226.25 27,226.25 01/01/2009 60,000.00 3.150% 27,226.25 87,226.25 212,730.00 299,956.25 327,182.50 07/01/2009 26,281.25 26,281.25 26,281.25 01/01/2010 60,000.00 3.300% 26,281.25 86,281.25 206,630.00 292,911.25 319,192.50 07/01/2010 25,291.25 25,291.25 25,291.25 . 01/01/2011 60,000.00 3.450% 25,291.25 85,291.25 189,905.00 275,196.25 300,487.50 07/01/2011 24,256.25 24,256.25 24,256.25 01/01/2012 65,000.00 3.600% 24,256.25 89,256.25 63,240.00 152,496.25 176,752.50 07/01/2012 23,086.25 23,086.25 23,086.25 01/01/2013 65,000.00 3.700% 23,086.25 88,086.25 88,086.25 111,172.50 07/01/2013 21,883.75 21,883.75 21,883.75 01/01/2014 70,000.00 3.800% 21,883.75 91,883.75 91,883.75 113,767.50 07/01/2014 20,553.75 20,553.75 20,553.75 01/01/2015 70,000.00 3.900% 20,553.75 90,553.75 90,553.75 111,107.50 07/01/2015 19,188.75 19,188.75 19,188.75 . 01/01/2016 75,000.00 4.000% 19,188.75 94,188.75 94,188.75 113,377.50 07/01/2016 17,688.75 17,688.75 17,688.75 01/01/2017 75,000.00 4.100% 17,688.75 92,688.75 92,688.75 110,377.50 07/01/2017 16,151.25 16,151.25 16,151.25 01/01/2018 80,000.00 4.150% 16,151.25 96,151.25 96,151.25 112,302.50 07/01/2018 14,491.25 14,491.25 14,491.25 01/01/2019 85,000.00 4.200% 14,491.25 99,491.25 99,491.25 113,982.50 07/01/2019 12,706.25 12,706.25 12,706.25 01/01/2020 85,000.00 4.250% 12,706.25 97,706.25 97,706.25 110,412.50 07/01/2020 10,900.00 10,900.00 10,900.00 . 01/01/2021 90,000.00 4.300% 10,900.00 100,900.00 100,900.00 111,800.00 07/0112021 8,965.00 8,965.00 8,965.00 01/01/2022 95,000.00 4.350% 8,965.00 103,965.00 103,965.00 112,930.00 07/01/2022 6,898.75 6,898.75 6,898.75 01/01/2023 100,000.00 4.400% 6,898.75 106,898.75 106,898.75 113,797.50 07/01/2023 4,698.75 4,698.75 4,698.75 01/01/2024 105,000.00 4.450% 4,698.75 109,698.75 109,698.75 114,397.50 07/01/2024 2,362.50 2,362.50 2,362.50 01/01/2025 105,000.00 4.500% 2,362.50 107,362.50 107,362.50 109,725.00 Total $1,525,000.00 - $713,691.46 $2,238,691.46 $1,374,535.00 $3,613,226.46 . 2004 Waler Revenue Bonds I SINGLE PURPOSE I 4/19/2005 I 10:34 AM Northland Securities Public Finance Page 4 RESOLUTION NO. 05- A RESOLUTION AWARDING THE SALE OF $1,525,000 GENERAL OBLIGA TION WATER REVENUE BONDS, SERIES 2005A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Shorewood, Hennepin County, Minnesota (the "City") as follows: Section 1. Sale of Bonds. 1.01 It is determined that: (a) the City engineer has recommended the construction of various improvements to the City's water enterprise system including reconstruction of a well house facility, the purchase and installation of control systems, and painting a water tower (the "Project"). (b) the City is authorized by Minnesota Statutes, Section 444.075 (the "Act") to finance all or a portion of the cost of the Project (the "Project Costs") by the issuance of general obligation bonds of the City payable from the net revenues of the water system. The Project Costs are presently estimated by the engineer to be as follows: Project Designation & Description: Total Proiect Cost Deposit to Construction Fund Underwriter's Discount Costs of Issuance Rounding Amount $1,471,500 24,400 27,300 1,800 Total $1.525.000 (c) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,525,000 General Obligation Water Revenue Bonds, Series 2005A (the "Bonds") pursuant to the Act to provide financing for the Project. 1.02. The proposal of (the "Purchaser") to purchase $1,525,000 General Obligation Water Revenue Bonds, Series 2005A (the "Bonds") of the City described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $1,525,000 plus accrued interest to date of delivery, for Bonds bearing interest as follows: . . . . . . . . Year Interest Rate Year Interest Rate 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 True interest cost: 1.03. The sum of $ being the amount proposed by the Purchaser in excess of $1,500,600 will be credited to the Debt Service Fund hereinafter created. The City Finance Director-Treasurer is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Administrator-Clerk are directed to execute a contract with the Purchaser on behalf of the City. 1.04. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Section 444.075 (the "Act"), in the total principal amount of $1,525,000, originally dated June 1,2005, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and maturing serially on January 1 in the years and amounts as follows: . Year Amount Year Amount 2006 $70,000 2016 $ 75,000 2007 55,000 2017 75,000 2008 55,000 2018 80,000 2009 60,000 2019 85,000 2010 60,000 2020 85,000 2011 60,000 2021 90,000 2012 65,000 2022 95,000 2013 65,000 2023 100,000 2014 70,000 2024 105,000 2015 70,000 2025 105,000 . 1.05. Optional Redemption. The City may elect on January 1,2013, and on any day thereafter to prepay Bonds. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular 2 amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Re~istered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on January 1 and July 1 of each year, commencing January 1,2006, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date~ . . . . (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. . 3 . (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. . (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. . (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. . (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. . (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to registered owners, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for 4 redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints Northland Trust Services, Inc., Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Administrator- Clerk are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director-Treasurer must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Administrator-Clerk and executed on behalf of the City by the signatures of the Mayor and the City Administrator-Clerk, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Finance Director-Treasurer will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: 5 . . . . . . . . . . No.R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SHOREWOOD $ GENERAL OBLIGATION WATER REVENUE BOND, SERIES 2005A Rate Maturity Date of Original Issue CUSIP January 1,20_ June 1,2005 Registered Owner: Cede & Co. The City of Shorewood, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable January 1 and July 1 in each year, commencing January 1,2006, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Northland Trust Services, Inc., Minneapolis, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on January 1, 2013, and on any day thereafter to prepay Bonds. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. 6 This Bond is one of an issue in the aggregate principal amount of $1,525,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on May 23, 2005 (the "Resolution"), for the purpose of providing money to aid in financing various improvements to the water system of the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 444.075 and Chapter 475 and the principal hereof and interest hereon are payable primarily from the net revenues of the water system of the City in a special debt service fund of the City, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in net revenues pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has covenanted and agreed that it will continue to own and operate the water system free from competition by other like municipal utilities; that adequate insurance on said system and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Water Fund, into which it will pay all of the gross revenues from the water system; that it will also create and maintain a General Obligation Water Revenue Bonds, Series 2005A Debt Service Fund, into which it will pay, out of the net revenues from the water system a sum sufficient to pay principal hereof and interest thereon when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net water system revenues. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. . . . . IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, . conditions and things required by the Constitution and laws of the State of Minnesota to be done, 7 . . . . . to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Shorewood, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Administrator-Clerk and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF SHOREWOOD, MINNESOTA (Facsimile ) City Administrator-Clerk (Facsimile ) Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. NORTHLAND TRUST SERVICES, INC. By Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: 8 TEN COM -- as tenants in common UNIF GIFT MIN ACT Custodian . (Cust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors JT TEN -- as joint tenants with right of survivorship and not as tenants in common Act. . . . . (State) Additional abbreviations may also be used though not in the above list. . ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of . substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. . Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information . concerning the assignee requested below is provided. 9 . . . . . Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Signature of Officer of Registrar Registered Owner Cede & Co. Federal ill #13-2555119 3.02. The City Administrator-Clerk will obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which will be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Payment: Security: Pledges and Covenants. 4.01. (a) The City will create and continue to operate its Water Fund to which will be credited all gross revenues of the water system and out of which will be paid all normal and reasonable expenses of current operations of the water system. Any balance therein are deemed net revenues and will be transferred, from time to time, to a General Obligation Water Revenue Bonds, Series 2005A Debt Service Fund (the "Debt Service Fund") hereby created in the Water Fund, which fund will be used only to pay principal of and interest on the Bonds and any other bonds similarly authorized. There will always be retained in the Debt Service Fund a sufficient amount to pay principal of and interest on all the Bonds described in Section 1.01, and the City Finance Director-Treasurer must report any current or anticipated deficiency in the Debt Service Fund to the City Council. There is appropriated to the Debt Service Fund (i) any amount over the minimum purchase price of the Bonds paid by the Purchaser, and (ii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 10 (b) The proceeds of the Bonds, less the appropnatlOns made in paragraph (a), together with any other funds appropriated during the construction of the Project financed by the Bonds (the "Project") will be deposited in a separate construction fund to be used solely to defray expenses of the Project and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Projects. When the Project is completed and the cost thereof paid, the construction account is to be closed and any balance therein is to be deposited in the Debt Service Fund. 4.02. The City Council covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the water system as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the water system accounts as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Debt Service Fund as a separate account in the Water Fund and will cause money to be credited thereto from time to time, out of net revenues from the water system in sums sufficient to pay principal of and interest on the Bonds when due. (c) The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the water system and which will be open to inspection and copying by any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon request. (d) The City Council will cause persons handling revenues of the water system to be bonded in reasonable amounts for the protection of the City and the . bondholders and will cause the funds collected on account of the operations of the water system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. . . . . (e) The Council will keep the water system insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Bonds and the City from any loss due to any such casualty and . will apply the proceeds of such insurance to make good any such loss. 11 . . . . . (f) The City and each and all of its officers will punctually perform all duties with reference to the water system as required by law. (g) The City will impose and collect charges of the nature authorized by Minnesota Statutes, Section 444.075 at the times and in the amounts required to produce, net revenues adequate to pay all principal and interest when due on the Bonds and to create and maintain such reserves securing said payments as may be provided in this resolution. (h) The City Council will levy general ad valorem taxes on all taxable property in the City, when required to meet any deficiency in net revenues. 4.03. It is hereby determined that the estimated collection of net revenues for the payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.04. The City Adminsitrator-Clerk is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. The Mayor and City Administrator are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 6. Tax Covenant. 6.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, 12 employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. . 6.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2005) exceed the small-issuer exception amount of $5,000,000. (b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all . tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)( 4 )(C) of the Code. 6.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private . activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the . Code; (b) the City designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b )(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2005 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2005 have been designated for purposes of Section 265(b )(3) of the Code. 6.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. . 13 . . . . . Section 7. Book-Entry System: Limited Obligation of City. 7.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Administrator-Clerk of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator-Clerk will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 14 7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificate, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owner in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and all notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. In order to qualify the Bonds for limited continuing disclosure under paragraph (d)(2) of Securities and Exchange Commission Rules, Section 15c2-12 (the "SEC Rule"), the City makes the following factual statement and representation: As of the date of delivery of the Bonds, the City will not be an obligated person (as defined in paragraph (f) of the SEC Rule) with respect to more than $10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds and excluding municipal securities that were exempt from the SEC Rule pursuant to paragraph (d)(1) thereof. 8.02. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.03. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator-Clerk and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 15 . . . . . . . . . . Section 9. Defeasance. 9.01. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank.) 16 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF SHOREWOOD ) . I, the undersigned, being the duly qualified and acting City Administrator-Clerk of the City of Shorewood, Hennepin County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on May 23, 2005 with the original minutes on file in my office and the extract is . a full, true and correct copy of the minutes insofar as they relate to the issuance tind sale of $1,525,000 General Obligation Water Revenue Bonds, Series 2005A of the City. WITNESS My hand officially as such City Administrator-Clerk and the corporate seal of the City this day of ,2005. . City Administrator-Clerk Shorewood, Minnesota . (SEAL) . 17 . . . . . STATE OF MINNESOTA T AXP A YER SERVICES DIVISION MANAGER'S CERTIFICATE AS TO REGISTRATION WHERE NO AD VALOREM TAX LEVY COUNTY OF HENEPIN I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Shorewood, Minnesota, on May 23, 2005, relating to General Obligation Water Revenue Bonds, Series 2005A, in the amount of $1,525,000, dated June 1,2005, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this _ day of ,2005. Taxpayer Services Division Manager Hennepin County, Minnesota (SEAL) By Deputy SH230-37 (SIB) 262627 vI 18 NORTHLAND'SECURITIES TABULATION OF BIDS CITY OF SHOREWOOD, MINNESOTA $1,525,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2005A Northland Securities, Inc. 45 South 7th Screet, Suite 2500, Minneapolis, MN 55402 Toll Froe 1-800-851-2920 Main 612-851-5900 !'ax 612-851-5987 www.northlandsecurities.com Member NASD and SIPC >- Cl ,........ l.--i I x Q) -= = ....... x L..n N ~c- o '+- :>- :z: M ,;?...I I..Q ...... L..n1J <:) .... :>- ~I:' C"'I ...... o l..:li <:) N I- :::w:: I..I.J ::3 (/) j:Q c.. j:Q 0) +> C) C- c ro ro ..c CU L) ~ CI <X! CI "'! ~ (J) :3 0) Z . I I . I . I . I I L_________~_~________~_________~__________~ I I , . I I I I I I I I . . I I I I I . I . . I I I . I I I I I I . I L_________~__________~_________~_ I I I . I I I I I I I I I I I I I I I I I I I I I I I I I . I I L_________~__________~_________~____ , , I I I I I I . 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I " I I I I I I I ~--_.._----~---------- ---------~----------.- I I I . . I' I I I I I , t I . I I I I , I I I . . I , I I I . . I I I . I I . I ~---------~ --------~--------- ---------~----------.- . I I I I I I' I I I' . I I I . I " : : :: c: ~------- ..:----------:..--------- ----------:----------~- ~ . I ..... 0) D. ::n I- CI <"! I() Oi 8 ::aN ,10 Q,.N o .,. .......11\. V N 001,' NLoo 0\41'" on O\eln 1000 01 0\'" ;,I val 15 E: ;,II/) 1 COM 150N eN L ... 41....1 <!l.c0\ OlIO ....... L'" ;,II Q.OO OV u.... :I: o 00 00 I/)N I\. 00 0.... ~M N .... ON N ... V v. oo 41 . Q.:::l o LO jO L1J0 .... c ... N .... N 10 I() 10 041 OL 1/)0 Q. 15 0001 VC 0.... MOO ....0 ....0 1/)0\ 1/)00 ... 00 ij Q. 15 .., o 00 100 o \0 I\. 1\.1\. 1\.1\. 0\0\ N N N ....1/) 1000 1501 .... C "'0 15:.0: L .... !:IL ~C jO <J::I: fi. CITY OF SHOREWOOD CITY COUNCIL MEETING May 23, 2005 PUBLIC SIGN-IN SHEET For the record, please print your name and address below. Thank you. Name Address 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.