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CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
ECONOMIC DEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS
MONDAY, JULY 16, 2004 Immediate1yFoDowinl
Regular CoundI MeetiBa
AGENDA
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
A. Ron Call
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B. Review Agenda
2. APPROVAL OF MINUTES
A. EDA Minutes of July 12. 2004 (Att.- Minutes)
3. CONSENT
A. Treasurer's Report (Att;- Treasurer.s report)
B. Approve Payment of Claims (Att. - Payment of Claims List)
4. NEW BUSINESS
A. Selection of Officers (Att.- Executive Director's memorandum)
5. OTHER BUSINESS
6. ADJOURN
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CITY OF SHOREWOOD
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MONDAY, JULY 12, 2004
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
Immediately Following
Regular Council Meeting
MINUTES
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
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President Love called the meeting to order at8:23 P.M.
A.
Roll Call
Present:
President Love; Boardmembers Garfunkel Lizee, Turgeon, and Zerby; Executive
Director Dawson; Assistant Treasurer Burton and Attorney Keane
Absent:
Boardmember Zerby and Assistant Executive Director Nielsen
B.
Review Agenda
Without objection from the Board, President Love proceeded with the Agenda for the meeting.
2. APPROVAL OF MINUTES
A. EDA Minutes of June 28, 2004
Turgeon moved, Lizee seconded, Approving the EDA Meeting Minutes of June 28, 2004, as
presented. Motion passed 4/0.
3. NEW BUSINESS
A. Approve Payment of Claims
Executive Director Dawson explained the claims list presented this evening included a payment to Kraus-
Anderson. He went on to explain this amount was the one recommended for payment by the Excelsior
Fire District (EFD) Board, and was not the full amount requested by Kraus-Anderson for payment of
services rendered. Since the EDA Board had requested additional information on this issue, EFD Board
Chair Skrede was in attendance this evening to answer any questions the Board might have had of him
regarding this issue.
Executive Director Dawson also stated the request for payment from Kraus-Anderson represented a
request for services rendered, and those fees had been brought forward for consideration. He stated the
discrepant issue in this case seemed to be whether the services had actually been rendered, and he
believed services rendered required payment in full in order to protect the EDA from exposure to
litigation in this matter.
President Love stated concern had been expressed by the EFD Board in this matter; however, the
majority of Boardmembers present had believed withholding payment was acceptable in this case.
EFD Board Chair Skrede stated there was a difference of opinion with regard to the services rendered
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SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES
July 12, 204
Page 2 of2
and the requirement for full payment at this time. He stated the majority of the EFD Board questioned
whether the services had actually been rendered. Documentation received by the EFD Board was unclear
at this time, and detailed the accounting requested had not been delivered by the contractor. He also
explained to withhold payment at this time did not indicate intent to avoid payment of the invoices
received; however, the EFD Board wished to discuss the matter with Kraus-Anderson representatives
prior to full payment. He also stated he did not believe there was liability for the EDA in this matter, and
discussions had been ongoing without satisfactory resolution as of yet. The position of the EFD Board
was to negotiate the discrepant amount and obtain further detailed documentation for the services in
question. He noted the documentation had been frequently requested over the past year without being
adequately supplied. In addition, the invoices for General Conditions with regard to the East Side Station
construction were substantially over the initial budget estimate and the EFD Board remained unclear
about how one week's delay due to weather conditions could equal the overage. Further discussions with
Kraus-Anderson were expected and necessary to resolve the dispute.
EDA Attorney Keane stated he believed the position of the EFD Board to be reasonable, as there was a
significant difference between the estimate and the project charges in this matter. He believed a detailed
accounting would be in order until the Board was satisfied with documentation presented. He did not
think an unexplained difference of the discrepant amount should be allowed to continue without resolve.
Turgeon moved, Garfunkel seconded, Approving the Payment of Claims presented.
Boardmember Turgeon clarified this motion approving payment did not include the payment of the
amount in dispute.
Motion passed 4/0.
4. OTHER BUSINESS
EFD Board Chair Skrede also explained it was the intention of the EFD Board to secure the appropriate
document for a credit for duplicate payment to Kraus-Anderson for sub-contractor services related to the
construction of the West Side Station. He stated this credit was being requested in order to supply a
correct accounting of the expenses for the project, and thus no liability would be assumed incorrectly.
5. ADJOURN
Turgeon moved, Garfunkel seconded, Adjourning the Economic Development Authority Meeting
of July 12, 2004, at 8:43 P.M. Motion passed 4/0.
RESPECTFULLY SUBMITTED,
Sally Keefe,
Recording Secretary
Woody Love, President
ATTEST:
Craig W. Dawson, Executive Director
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, Minnesota 55331-8926
952.474.3236 FAX: 952.474.0128
MEMORANDUM
Date:
July 21,2004
To:
EDA President and Commissioners
From:
Scott Zerby, Treasurer
Re:
Annual EDA Financial Statement and Treasurer's Report
The EDA By-Laws require that the Treasurer shall file the Authority's financial statement with the
secretary at least once per year. This memorandum and the City's annual audit report are intended to
provide compliance with that requirement.
The City's Comprehensive Annual Financial Report for the year ended 12/31/2003 reported that
"Lease Revenue Bonds were issued by the EDA to finance construction of Public Safety Facilities.
The bonds will be repaid from lease payments from the Excelsior Fire District and the South Lake
Minnetonka Police Department."
The attached financial statements are excerpts from the 12/31/2003 Comprehensive Annual Financial
Report are provided for the convenience of the Commission.
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CITY OF SHOREWOOD, MINNESOTA
Economic Development Authority
BALANCE SHEET
December 31, 2003
EDA Public Safety EDA Debt Service
Facilities Proiect Fund Fund
ASSETS
Cash & Investments $ 2,674,356 $ 86,288
Lease Receivable 12,365,000
TOTAL ASSETS $ 2,674,356 $12,451,288
LIABILITIES
Accounts & Contracts Payable $ 1,037,618 $
Deferred Revenue 12,365.000
TOTAL LIABILITIES $ 1,037,618 $12,365,000
EQUITY (DEFICIT)
Fund Balance (deficit) 1,636,738 86,288
TOTAL LIABILITIES
AND FUND BALANCE $ 1,636,738 $12,451,288
STATEMENT OF REVENUE & EXPENDITURES
December 31, 2003
REVENUE
Proceeds form Sale of Bonds $ 2,364,285 $ 4,093
Interest 45,190 436
Lease Payments 447,704
Miscellaneous
TOTAL REVENUE $ 2,409,475 $ 452,233
EXPENDITURES
General Govt
Public Safety $ 8,261,287 $
Debt Service 447,705
Capital Outlay
Transfer Out
TOTAL EXPENDITURES $ 8,261,287 $ 447,705
EXCESS (DEFICIENCY) OF
REVENUE OVER EXPENDITURES $ (5,851,812) $ 4,528
FUND BALANCE, JANUARY 1 $ 7,488,550 $ 81,760
FUND BALANCE, DECEMBER 31 $ 1.636,738 $ 86,288
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Shorewood Economic Development Authority
Check Approval List for 7/26/04 Meeting
Check # Vendor Name Description Check Date Invoice #
1151
US BANK W. POLICE - 2002B BOND
TOTALFOR USBANK
BRAUN INTERTEC CORP E. FIRE - PROF SVCS TH
TOTAL FOR BRAUN INTERTEC CORP
DEEPHAVEN, CITY OF E.FIRE - WELLHOUSE TR
TOTAL FOR DEEPHA VEN, CITY OF
7/20/2004 33448800-
1152
7/27/2004 232015
1153
7/27/2004 071504
TOTAL CHECKS
Amount
$98,n7.50
$98,777.50
$988.10
$988.10
$6.434.00
$6,434.00
$106,199.60
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SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, Minnesota 55331-8926
952.474.3236 FAX: 952.474.0128
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
EDA Board of Commissioners
Craig W. Dawson, Executive Director
July 22, 2004
Annual Meeting - Selection of Officers
The By-laws (Section 3.1) require that the Annual Meeting of the EDA occur at 6:00 p.m. on the
fourth Monday of July, and State statute requires than an EDA meet at least once per year. The
Annual Meeting has been scheduled to occur immediately following the City Council meeting on
July 26.
The only business identified that must occur at the annual meeting is the selection of the Vice-
President and the Treasurer of the Board. The officers of the board are as follows:
. President - shall be the Mayor of the City of Shorewood. W oodv Love currently serves in
this capacity.
. Vice-President - shall preside in the absence of the President and may exercise all powers and
perform all responsibilities of the President if the President cannot exercise or perform the
same due to absence or other inability. John Garfunkel currently serves as Vice-President.
. President Pro Tern - when the President and Vice-President are absent or unable to be at any
meeting, the Board may appoint any remaining Commissioner as President Pro Tern to
preside at such meeting. Chris Lizee currently serves as President Pro Tern.
. Treasurer - The Treasurer shall receive and be responsible for Authority money, etc., shall
file the Authority's financial statement with its Secretary at least once a year as set by the
Authority, and be responsible for the acts of the Assistant Treasurer. Scott Zerby currently
serves as Treasurer.
. Assistant Treasurer - shall be the Director of Finance. Bonnie Burton is the Assistant
Treasurer.
. Secretary - shall be the City Administrator. Craig Dawson is the Secretary.
. Executive Director - shall be the City Administrator. Craig Dawson is the Executive
Director.
. Assistant Executive Director - shall be the Director of Planning. Brad Nielsen is the
Assistant Executive Director.
ACTION: The Board needs to select the Vice-President and Treasurer. It may also decide whether
to select the President Pro Tern.
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