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052708 CC Reg AgP CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING TUESDAY, MAY 27, 2008 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. AGENDA 1. CONVENE CITY COUNCIL MEETING A. Roll Call Mayor Lizee _ Woodruff Turgeon _ Bailey _ Wellens B. Review Agenda 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, May 12, 1008 (Att. - Minutes) B. City Council Regular Meeting Minutes, May 12,2008 (Att.- Minutes) 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/rom the Consent Agenda. Comments can be taken or questions asked/ollowing removal/rom Consent Agenda. A. Approval of the Verified Claims List (Att.- Claims List) B. Staffing - Appointment of a Temporary Position for Public Works Seasonal Help (Att. - Director of Public Work's memorandum) C. City Clerk's License List (Att. - Deputy Clerk's memorandum) D. Accept Proposal for Safety Services with Safe Assure (Att. - Director of Public Works' memorandum) E. Authorize Expenditure of Funds for Fuel Tanker Trailer (Att. - Director of Public Works' memorandum) F. Hennepin County Joint Cooperation Agreement for Fiscal Year 2009-2011 CDBG (Att. - Acting Administrator's memorandum, Resolution) G. Approval of Multiple Dock Facility License for Shorewood Yacht Club (Att. - License Application) H. Appeal Notice to Remove (Att. - Planning Director's memorandum) CITY COUNCIL REGULAR MEETING AGENDA - MAY 27,2008 PAGE 2 OF 2 4. MATTERS FROM THE FLOOR (No Council action will be taken.) 5. REPORTS AND PRESENTATIONS A. Audit Report by Andrew Berg, CPA, Abdo, Eick and Meyers (Att. - Finance Director's memorandum) 6. PUBLIC HEARING 7. PARKS - Report by Representative A. Report on Park Commission Meeting Held May 13,2008 (Att.- Draft Minutes) 8. PLANNING - Report by Representative 9. GENERAL/NEW BUSINESS A. Lake Minnetonka Conservation District 2009 Budget (Att. - LMCD Budget) 10. ENGINEERING/PUBLIC WORKS A. Accept Bids and Award Contract for Seal Coat Project (Att. - Engineer's memorandum, Resolution) B. Accept Bids and Award Contract for Lift Station 16 Project (Att. - Engineer's memorandum, Resolution) 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff B. Mayor & City Council 12. ADJOURN CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD" SHOREWQOD, MINNESOTA 55331-8927" (952) 474-3236' FAX (~52) 474-0128. www.ci.shorewood.mn.us . cityhall@ci.shorewood.mn.us Executive Summary Shorewood City Coun~il Regular Meeting Tuesday, 27 May 2008 A 6:00 p.m. Work Session will be held this evening. Agenda Item #3A: Enclosed is the Verified Claims List for Council approval. Agenda Item #3B: Staffing - This item requests approval of the hiring of Adam Kirscht, Public Works temporary summer worker. Agenda Item #3C: License requests for the Sale of Fireworks have been received at the City and reviewed for completeness. The Fire Inspector has inspected and approved each site. As all license requirements have been met, a license for the Sale of Fireworks has been issued to Cub Foods, Holiday Stationstore and the Dollar Tree. Agenda Item #3D: Staffis recommending approval of the proposal provided by Safe Assure Consultants for safety services in the amount of $2,775.00. Agenda Item #3E: Staff is recommending approval for the authorization of expenditure of funds from the equipment replacement program for a 500 gallon[uel trailer as proposed by Robert Davis and Son in the amount of$16,585. Agenda Item #3F: Shorewood has participated inthe Hennepin County Consolidated Pool for the federal Community Development Block Grant (CDBG) Program for several three- year funding cycles. ." In order to beeligibl~ for funds, it is necessary to be a participant. Adoption of a resolution is needed to continue participation in the 2009-2011 CDBG program. Agenda Item #3G: Shotewood Yacht Club has applied for its 2008 multiple dock facility license. Approval is recommended subject to the owners' compliance with L-R zoning district requirements and the conditional use permit for the property. Agenda Item #3H: Mr. Ron Born was sent a "Notice to Remove" for debris on his property at 4865 Ferncroft Drive and has asked for an extension oftime (30-days) to comply. Staff is . recommending approval of his request. Agenda Item #5A: Mr. Andrew Berg, CPA, a partner with the independent audit firm of Abdo, Eick & Meyers, LLP, will make a presentation about the annual financial audit for ,. f: . PRINTED ON RECYCLED PAPER .., Executive Summary - City Council Meeting of27 May, 2008 Page 2 of2 the period ending December 31, 2007. The Council is requested to accept and approve the 2007 Certified Annual Financial Report (CAFR) by simple motion. Agenda Item #7 A: Park Commissioner Josh Trent will be present this evening to report on the May 13 Park Commission meeting. Agenda Item #9A: The Lake Minnetonka Conservation District (LMCD) has published a draft budget for the City Councils review, in preparation of a budget work session to be conducted Thursday, May 29th at 11 :00 a.m. As noted in the cover memo by the LMCD, the proposed levy to member cities would increase 18.3% under the proposed budget. Agenda Item # 1 OA: Bids were received, opened, and tabulated on May 21 st for the bituminous seal coating of roadways for the Cites of Shorewood, Excelsior and Tonka Bay. Allied Blacktop is the lowest bidder with a total bid for all three Cities of $224,860.15. The City of Shore wood's portion of this project is $126,230.25. Staff recommends approval of a resolution that awards a contract of $126,230.25 to Allied Blacktop. Agenda Item # 1 OB: Staff received three bids for the Rehabilitation of Lift Station No. 16 project. Staff recommends that the City Council approve the resolution that accepts the bids for the project and awards the contract to CCS Contracting, Inc. in the amount of $88,416.00. CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, MAY 12,2008 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Acting Mayor Turgeon called the meeting to order at 6:01 P.M. A. Roll Call Present. Acting Mayor Turgeon; Councilmembers Bailey, Wellens and Woodruff; Acting AdministratorlDirector of Public Works Brown; Finance Director Burton; Planning Director Nielsen; and Engineer Landini Motion passed 4/0. Absent: Mayor Lizee " B. Review Agenda ,11m,. f' Wellens moved, Woodruffseconded, Approving th~I~~ndJlhs llllllt, 2. DEBT FINANCING OPTIONS FOR~~ Y HALUqM;f,ROVEMENTS - PRESENTED BY PAUL DONNA, NORTHLAND SEC ". ;!l' 'I Director Burton stated Council reques nnvork-se on be to learn about the debt financing options available for the City Hall renovati e'men intro f~~d the City.'s bond cons~ltant Pa~1 Donna, Senior Vice President for Northland Secd' 1?ftt!mn~tW@ 'present to dISCUSS the optIOns avaIlable. Mr. Donna stated there nUII~Il!l~~'ing options available to the City for the City Hall renovation; 1) General" 181~gation eren~Um) Bonds; 2) Lease Purchase Revenue Bonds; and 3) General Obligation Capita !I.~nrovem Ph.n Bonds. With regard to General Obliga~}Jll~rt!ferendUm) Bonds, he explained the City had the authority to issue this type of bonds which were b~ed by the full faith and credit of the City and would require a special election if this method was used. If a minimum of 51 % of the voters was favor, the City would have the ability to issue the bonds. The bonds would be subject to the City's statutory debt limit, which was currently approximately $16 million. General Obligation Capital Improvement Plan Bonds are based on a 2003 Minnesota program that allows statutory cities to establish a capital improvement plan and issue this type of bonds for certain improvements. The bonds are subject to the City's statutory debt limit. A capital improvement plan for the City Hall renovation would have to be developed, and it would have to be approved after holding a public hearing. The City would be subject to a 30-day petition period. The issuance of bonds would only be subject to a referendum if the City received a petition calling for a referendum on the issuance of the bonds signed by a number of residents equal to 5 percent of the votes cast in the City's last general election, and submitted to the City within thirty days of the public hearing. Lease Purchase Revenue Bonds, could be issued by the City itself or through an authority of the City (e.g. the Economic Development Authority). The bonds would be subject to the City's statutory debt 1#2A I CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 2 of9 limit. The process for issuing this type of bond would be similar to the process used to issue debt for the Public Safety Facilities. The EDA would issue the debt and lease City Hall to the City for lease payments equal to the debt service payments. This type of financing would not require a referendum. If the City wanted to levy taxes outside oflevy limits to make the lease payments, these type of bonds would have to be issued by another governmental agency such as the EDA; a governmental agency was considered outside the levy limits pursuant to State Statute. He explained for General Obligation Bonds a levy was certified up-front for the entire term of the bonds. Bond holders and buyers consider these type of bonds the safest investment they could make with a city. For Lease Purchase Revenue Bonds, the appropriation of funds from a city's General Fund for the lease payments is done on an annual basis; the City would reserve the right to non-appropriate at any time and therefore these bonds could be considered a less secure investment. A Lease Purchase Revenue Bond currently yields approximately a 0.15% - 0.25% higher interest rates than a General Obligation Bond. Mr. Donna stated the financing process would take approximately 90 days to complete the closing of the bond issuance. He commented he had responded to many inquir,i~,recently regarding the municipal market; people expressed concern about some municipal bond,msurers failing or having their ratings downgraded. He stated bonds rated AA or better (the City hadlf~f\Jlf ing) and bank qualified, which the issued bonds would be, hadn't been impacted by the m~fh.~~.\ He a 20-year issue for a general obligation bond would have an interest rate of less than 4:q;ercent. I t . fi C '1 b w,'ildlllll~~ Jhl, d' . . th L' F d M n response 0 a questIon rom ounCI mem .er 00 ~~illl~. g.. ar mg mvestmg e Iquor un, r. Donna stated the City would have to go out 4 - 5 years t l\~ceed the 4 percent range. In response to another question with regard to the EDA leasin~l 9ity Hallr~hp'k to the City, Mr. Donna stated if the im~rove~e~ts could be identified distinctly then:!~~rl\:lems would be leased back otherwise the entIre bUIldmg would be the asset that would be Ie '.W In response to a question froll~pu. member Bailey, Acting Administrator Brown stated the 90-day window to issue debt for financi\\~l~he renovation project would not be an issue with regard to making the first construction payment. ' r BaileYti,Mr. Donna stated in similar situations he had been Mf1i~\tax capacity of the City other city councils generally for'financing. The reasons were mainly to keep the project ion, Mr. Donna stated if the City did a direct lease with a thin levy limits. In response to a question from Co involved with where a facility was chose the lease purchase rev~ from being stopped. In re nse trustee the debt service ents wou In response to a question from Councilmember Woodruff, Director Burton stated if a construction payment was due before the bonds were issued the City could "cash-flow" the payments from another city fund. Councilmember Wellens questioned what the impact would be on the type and cost of financing if the City chose to use some of the Liquor Fund or funds from the sale of the City owned house. Mr. Donna explained typically when the amount of financing needed was not more than $500,000 it was generally more cost effective to work directly with a specific bank or other institution; those institutions were only interested in fixed-rate bonds with a maturity date of 10 years or less. He stated he had been involved with many $500,000 issues with a 15 - 20 year maturity on the open market. He offered to run different scenarios using different financing amounts if that was what the Council wanted. Councilmember Wellens stated he was leaning toward the General Obligation Capital Improvement Plan Bonds primarily because it would provide the residents an opportunity to stop the renovation project if CITY OF SHORE WOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 3 of9 they did not want it. He thought that risk was a good risk; it would make Council accountable to the residents. He would prefer to do that then dodge a referendum; he would rather be subject to the will of the residents in that regard. In response to a question from Acting Mayor Turgeon, Mr. Donna explained the rate for the bonds issued for the crossover bond refunding for the Public Safety Facilities was slightly less then the rate for General Obligation bonds. He noted the Bond Buyer Index was historically low when that refinancing was done. Director Burton requested Council provide Staff with direction with regard to financing the City Hall renovation project. She noted the process for issuing bonds could be stopped at any time prior to the actual issuance of the bonds at no cost to the City. Acting Administrator Brown stated it would be beneficial if Council would identify its preference in financing options. Councilmember Bailey stated it was important for Council to decide on the size of the bond issuance, which would require Council to determine how much of the Liquor Fund would be used to fund the renovation effort. Burton stated the amount of the bond issue would be contingent o~ the cost of thedi~n,?vation effort. She suggested Mr. Donna address how to defease or buy down bonds 10 the future. .[IL d",,,, I' 'If; Councilmember Woodruff stated the renovation construc~~~~lcoul~IQht~tarted before all the financing was secured because of the City's financial state. Wood~ff also stated.tq8r~,could be value in allowing the reside~ts. an opport~nity to state they did not wal}tf~~un~llhe renovavibn. He indicated it would be problematic If construction had already started. '4Ihl:' . ''llh Acting Mayor Turgeon stated the residents had~l_8ijfi been~f~\<ted an opportunity to comment on the project at the public hearing for the conditiomi\. usell it fOr the City Hall renovation and at the information open house held about renovation. S~jjl'lk ,; option of issuing the bonds through the EDA.11 '.' , lifi Councilmember Bailey stated fro ~4nt General Obligation Capital Improvement Plan Bonds were the worst option,IJhnt 'trOU allow a minimum number of residents (5 percent of the number of voters in the I gene I8qt1tu call for a referendum which could stop the project. He was not in favor of a re m; the iCihad been provided an opportunity to comment on the project at the public hearing for the ditiona se permit for the City Hall renovation. II"", " Councilmember Woodruff state~llWlihere was a referendum it would be in November 2008, and that , would delay the project to 2009 and that the public had been provided an opportunity to provide input on the project. He commented he had not received any comment about the project, either positive or negative. Woodruff suggested Mr. Donna prepare scenarios for a $500,000 bond issue, a $750,000 bond issue and a $1 million bond issue, and address the options for paying the bonds down early. Councilmember Bailey stated the issuance cost for the three amounts would roughly be the same. Councilmember Wellens stated the risk of a petition calling for a referendum would be virtually zero, and the General Obligation Capital Improvement Plan Bonds had a lower interest rate. He questioned how much the City wanted to spend for the security of ensuring no one could stop the project. Councilmember Bailey commented the debt service for Lease Purchase Revenue Bonds would be approximately $40,000 more than for General Obligation Bonds. CITY OF SHORE WOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 4 of9 Councilmember Woodruff stated the General Obligation Capital Improvement Plan Bond financing option would require more work than the other financing option. He noted he liked the option of the Lease Purchase Revenue Bonds, and the only additional meeting required for that option would be to authorize the issuance. He commented the bonds could be constructed so they could be paid off early. Councilmember Bailey, Acting Mayor Turgeon, and Councilmember Woodruff stated they favored the Lease Purchase Revenue Bonds option. Councilmember Wellens stated he could support that option even though it may look bad to the public. Mr. Donna stated the next step in the bond issuance process would be for him to prepare a more detailed analysis of what the bond structure would look like, including costs involved. He would also prepare a draft calendar of events. Councilmember Bailey requested an analysis of a bond structure for $500,000 on the public market, and then the costs if a lesser debt amount done through a bank. Mr. Donna clarified if the debt was issued for longer then ten years it should still be done on the public market; t~l~osts would be a higher percent of the total issue for a smaller issue amount. He explained at th~(~~~t meeting the necessary paper work would be available for Council to authorize initial action onltn~i; tion of choice. A second meeting would be required where the final terms would be present~~lor con ration. He stated he would need approximately four weeks between the initial authoriz~~I~ffme~~~~g and '~I~J;lal approval meeting. Director Burton questioned if it would be more valuablJlttJltnow renovation costs prior to Mr. Donna returning for a meeting with Council. Council mber Baile54 ted if the margin of error on the estimate renovation costs was 10 percent then waiting :tI . mounts 'not necessary; if it was anticipated it could be more than that it maybe worthwhile to id ounts. ..!....,' .1' Councilmember Woodruff stated th~fft' t cost ~timate was about $925,000 which did not include landscaping, and the total cost coqlcllUke, ~ 1 to $ ~hllmillion. ,111"'''''''' $. '.' "",__"', "t. ,'...~..,,,. ...... . 'k. -,. ~. '.:. -' . .":;".~. ,;,}?~.f' Mr. Donna suggested at th~fll"tll~e .'~. '~h~fg initial action would be authorized, Council could approve a not-to-exceed ~unt. rt~l'l...'.,..,..,..",".p... la'iflftil'all of the bond and lease documents would be available for approval at that sam ting. He' ...r'.. ted,the City would then be prepared to go to market but not until it received the construction . j. I> 3. DISCUSSION REGA G WARD SYSTEM Director Nielsen stated the purpose of the ward election system discussion was not intended to go into depth about whether or not the City should have a ward system; it was to talk about the timing for having that discussion. He explained if Council wanted to have an at-large election system in place for the 2008 general election, then a public hearing would have to be held on June 9, 2008, and Council would have to take action on abolishing the ward system and going to an at-large system that same day. Polling places must be identified and submitted to the County by June 11,2008. He noted the deadline could possibly be May 27, 2008. He explained the City had to notice a public hearing in the City's official paper ten days in advance of the hearing and it took one week to get the notice into the City's official paper. Nielsen then stated the upcoming City-wide survey would. provide a great way to hear from residents about the ward system. The survey feedback on the topic would be valuable when considering any change to the election system. To hurry the decision to be done by June 9, 2008, did not seem like very good policy. He clarified there had not been any specific direction to make a change in the election system in time to have it in effect for the 2008 general election. He explained the resident who requested CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 5 of9 Council reconsider the value of the ward system had hoped it could happen in time, but he was under the impression that the City had until the filing date in August 2008 to make any change. Nielsen said it was up to Council to decide if it wanted to meet the June 9th date or wait to discuss the topic until after the survey results were available. Councilmember Wellens stated it was his understanding that the process could not be started and stopped at a later date. Acting Mayor Turgeon stated the City could hold a public hearing on June 9th, but it did not mean Council would have to take action on changing the election system that evening. Director Nielsen explained if Council thought it may want to take action on June 9th, a resolution and ordinance amendment would have to be prepared by then. Councilmember Woodruff said he would like that to be done. Councilmember Bailey asked if the public hearing was a hold a public hearing. Councilmember Woodruff stated the public hearing co held, er discussion Council could decide to drop the idea of changing the election systept c~~lp decide " abolish the wa~d system a~d go to an at-large system. He explained if a public heanl~as hot scheduled for June 9 a change In election systems would not be in effect until the.2010 gene UQ\r.ction, if there was any change approved. Councilmember Bailey stated he agreed the su;~~;lI fIl!~\~lj:I~~~d way to provide residents with the opportunity to convey their thoughts about the wa~. stetp!'He said the only people who comment at public hearings are those energized . ,,, topic; j~!ven i(someone has a very strong opinion they often don't make it to the public heari~1 'ttIconc.e.111lim to hold a public hearing and make a decision immediately after that. He had no pcl~,a public hearing to hear some of the issues, but he would be uncomfortable rus . 0 change the system. He noted he was not a proponent of the ward system; and that a er 0 ,when the election system was changed to a ward system there was a lot of civ' olvemen t-track approach would not allow for that same level of involvement. lhl! @Uh r Acting Mayor Turgeon questio~~I~~h~t new information would come from the survey; the issues had not changed. She stated when the deci'sion was made to go to the ward system there were 8 - ]2 people who attended the public hearing then. Councilmember Bailey stated at that time no one had experience with the ward system and now they do; the City had not asked the residents what they thought of the ward system once they had experience with it for two genera] elections. If residents were not in favor of the ward system it would be a solid reason to return to the at-large system. Turgeon stated a little more than three years ago a small number of residents requested Council reconsider the ward system; to delay a decision again in order to get input from the residents via a survey, when a timetable had not been established for conducting a survey, did not seem appropriate. Councilmember Woodruff stated the public hearing could, at a minimum, be a facility for explaining the experience with the ward system and getting it into the public record. The decision could be made at a later date as to whether or not Council should wait for feedback from the survey before deciding to possibly make a change. There was consensus to schedule a public hearing for June 9, 2008, for the ward election system. There was also consensus to have Staff prepare a resolution and amendment to the ordinance. There was CITY OF SHORE WOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 6 of9 comment that even if the resolution and amendment were not needed that evening it might be needed in two or four years. 4. CHRISTMAS LAKE SURFACE USE Director Nielsen stated Acting Administrator Brown had been in discussions with residents on the north end of Christmas Lake (adjacent to the Merry Lane public access) regarding the silting-in of their bay. He explained the residents thought the silt problem was partially caused by the regular use of the public access boat launch. When boaters power their boats onto trailers they often cause substantial disturbance to the lake bottom, and the silt floats into that particular bay. The residents now have trouble navigating the waters in front of their properties. The residents had a number of discussions with the Department of Natural Resources (DNR) or the Minnehaha Creek Watershed District (MCWD) with the hope of either of the agencies undertaking a dredging project. The residents have resigned themselves to applying for a dredging permit themselves. Nielsen stated the residents requested measures be taken to preveWlnhe silting problem from recurring, before they spent money on dredging. One of the ideas discusse~lll~s the possibility of a "no wake zone" in the vicinity of the launch area, possibly including the~*tir~lllay. The residents thought such a restriction would keep boaters from powering their boat~H9flto trail~f~; He explained the process for designating an area a "no wake zone" had to be .ini~iate~fl~lthe,localle~~~j1jrl~Ci~ had t~ ~ake a request to the DNR. Staff had contacted the DNR who mdlc~t€l~fn wOlM. send mJdlrmatlon detaIlmg the process that must be followed. At this time Staff was asking fofl~~6ti6n from Council on how to handle the request.1fllh '\11111" in }Jounty Water Patrol occasionally patrol pPwake restriction" could be difficult. The I a dredging permit. He related the MCWD would prefer something be done to keep the Acting Administrator Brown stated the DNR Christmas Lake. Therefore, regular enforcement MCWD had been heavily involved indicated if its Board approved t silting-in problem from recurring. 1llllUlIII Councilmember Woodrufij~tated Ii that powering boats ont~If4t.. 'Iers was explore if that were the sole rit or think that could have an effect, re , h '11111' Councilmember Woodruff statedPhe was concerned about enforcement. He then stated most boaters would probably adhere to the "no wake zone" restriction, but he had never seen a restriction on how to put a boat onto a trailer at a launch. He expressed concern about the ability to educate boaters on not powering boats onto their trailers. hi p '~d with the residents and questioned if there was evidence ca~'~e of the problem. Director Nielsen said the process would there were other contributing factors. He related the MCWD did cing that activity could help mitigate the situation. Councilmember Wellens suggested a truck load of gravel be dumped into the lake at the boat launch area to bury the silt to keep it from being churned. Councilmember Woodruff stated one solution, although expensive, would be to redevelop the launch area and make a concrete ramp 20 - 40 feet out into the lake. He did not think the "no wake" restriction would solve the problem. Acting Administrator Brown commented that Staff had operated under the premise that everything below the water level was the responsibility of the DNR, and everything above the water level was the responsibility of the City. In this situation the DNR was not taking that position. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 7 of9 Woodruff moved, Bailey seconded, recessing the meeting to a Regular Meeting at 6:58 P.M. Acting Mayor Turgeon reconvened the meeting at 7:46 P.M. Councilmember Bailey questioned if there was a downside to the restriction. Director Nielsen stated there would have to be signage informing boaters they must winch their boats onto their trailers and Councilmember Bailey suggested the City encourage the residents to educate boaters at the launch on the ordinance. Acting Administrator Brown stated Staff had taken some measurements at the launch area, and the results indicated there was substantial depth at the boat access. It was past that area that the water depth was not very great. He related the MCWD had stated the powering of boats on to trailers was a problem. Director Nielsen stated Staff would solicit advice from the DNR and the MCWD regarding the effectiveness ofthis approach. 5. DRY HYDRANTS / df There was Council consensus to direct Staff to initiate a ,\ll,. II r'd!! .rh Acting Administrator Brown explained in 1994 the ciUiI,i~sta'led three dry hydrants to provide an adequate water source for fire suppression oll,}Enchantedl'liiflnd and Shady Island. The Mound Fire Department performed test pumping on the hyd1t ... nnUally.~.IUhli{)r to the MFD tests the City's Public Works Department back flushed the hydrants to \e .ldepfis from screen on the end of the intake pipe, and to prevent silt from remaining on the int~. ti~~lbfthe system. Public Works had been back flushing more frequently based on tI from t ( MFDfregarding the amount of silt drawn in during the trial runs. Although the flO'Yfl was ade'filate for fire suppression, the capacity had been decreasing over the last few.. y. e. a. rs.................. It1mlQpsi'gn of the dry hydrant system was not ideal, in part because the DNR objectedf~~lhn~!.pb ;~Hove the lake bottom at the time the hydrants were installed. ...11.'\' flllh! Brown stated Staff rec~~~I. ed a f",ibilily study be conducted to determine reasonable solutions for improving the quality and qua f/~ow available for fire fighting operations. Ill' Councilmember Woodruff stated/this affects him personally, and he cited a situation a few years ago where a wetland burned and the MFD did a quality job of responding to the situation. The MFD did not use the hydrants because of the silt situation; instead it used tanker trucks to bring water to the scene. He stated the location of hydrant system 3 was very shallow and the lake bottom was mucky. Acting Administrator Brown stated the location of system 3 was not a good location. He explained when the dry hydrants were installed the intent was to use them in conjunction with the tanker trucks. He stated the feasibility study would explore what could be done with the intake pipes, from an economic perspective. He stated since the time the City installed the hydrants, it appeared the DNR had allowed hydrants to be installed well above the lake bottom. He noted that lengths of some of the intake pipes were 700 - 800 feet long. Councilmember Woodruff said he would like the Staff to research ways to make the dry hydrant systems more usable then they are now. He also stated the lack of hydrants could increase the cost of homeowners insurance. Acting Administrator Brown stated the Insurance Services Office, Inc., was completing a study for the areas the MFD services, and they were satisfied with the results of the hydrant tests. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 8 of9 Acting Administrator Brown stated all three hydrant systems had the same design problem, and he had reported the design problems to the DNR. 6. OTHER In response to a question from Councilmember Bailey, Director Burton stated the next discussion of the investment policy would be scheduled for the June 9th Council work session. Acting Administrator Brown stated the following topics were slated for the May 27,2008, Council work session: plans and specifications for the City Hall renovation project; the search for a City Administrator; the pros and cons of hiring a construction project manager for the renovation project; and the roadway overlay request from the Boulder Bridge Farm Homeowners Association. There was consensus to schedule a work session for June 2nd. Staff will identify topics for discussion at that work session. Director Burton stated Mr. Donna will discu,~$ilkond financing for the City Hall renovation at a June 9th meeting. Director Burton noted that bl.\~et discussions would begin the latter part of June. 11"''11111 t'.', ''lltl Coun~ilmember Bailey stated i~ or~er to have a. produc~i~er~'i'S~USSi?n'dH~~,t)ae u~e of the Liquor Fu~d it ~~~n~~::;~r ~oo~~:f ~~at~~e~~I~o~"~e~~t~~e di~~::I!:., ...~~~~~es:~~;~~~~~I;h:~e~e6 ~l~e::~~s~s. III' Councilmember Bailey stated that groups are~oductiv~lhYhbn they evaluate options, rather than having too many possibilities, as is the case wit!li~f,th~<recisions before Council. Staff was best suited to prepare options based on previo~s Counc ; l~cus~lljhs, and it was important that Council come to meetings prepared to bring closur~dMIQn~pic. Ac, g Administrator Brown cautioned Council that for e~ch topic Council wanted to di~,etlqt~tat~i~~d to Dpt1Jrovided with adequate time to prepare for that dIScussIon. '1IIIIIJU Ii Ih1lUUlff' Acting Mayor Turgeon s p;Yhtli€1 agendas that would result in meetings lasting until 9:30 P.M. I" Councilmember Bailey statedl\tqI8n~i irector Burton had discussed the possibility of a budget variance report. He reviewed a sample h'~lltlad prepared. The variance analysis would compare current month actual against budget; and would also compare current month actual against last year actual and identify the variance. He stated if the budget were prepared with realistic monthly projections, the report would be much more meaningful. The report was a high-level report that would identify significant variances, relatively easily; and the report would be accompanied by a summary page explaining the major variances. The same type of reporting could be done for Enterprise Funds. He asked if the report would be of value to Councilmembers. Council member Wellens stated Council had already asked the Finance Department to change budget reporting to accommodate his requests and Councilmember Woodruffs requests for specific formats. He would prefer the reports be more graphic in nature. He said Councilmember Bailey's report was yet another variation. Wellens stated Council should consider what formats future Councils may want to use. Councilmember Woodruff stated the format was less important than the result. He also would like the budget to be prepared with realistic monthly projections. He suggested the 2009 budget be prepared that way. He also thought graphical reports were easy to understand. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES May 12, 2008 Page 9 of9 Councilmember Bailey suggested no reporting changes be made before budget discussions. He stated based on his experience the initial budget discussions focused on annual projections and when the budget was agreed to, the detail budget could be prepared with realistic monthly projections. Councilmember Wellens suggested Council be provided with the data electronically and then Councilmembers could put it in the format they wanted. Director Burton stated it was important there were standardized reports, and Councilmember Bailey's sample report was a good start. 7. ADJOURN Wellens moved, Bailey seconded, Adjourning the City Council Work Session Meeting of May 12, 2008, at 8:27 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ,i*ti ~, Lawrence A. Brown, Acting City Administra~r~'ftr~ LILllilll'''. ,..d('IIII'11 ... 111,;;:,. "" 1111111: ,llllIilllm.,1 illlll!" y l'^ I;' Lff"rYI~lY:rgeon, Acting Mayor 'i 'Illllh 'I!I Ii" ATTEST: CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, MAY 12,2008 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Acting Mayor Turgeon called the meeting to order at 7:04 P.M. A. Roll Call Present. Acting Mayor Turgeon; Councilmembers Bailey, Wellens and Woodruff; Attorney Keane; Acting AdministratorlDirector of Public Works Brown; Finance Director Burton; Planning Director Nielsen; and Engineer Landini Absent: Mayor Lizee Hearing Date Regarding Ward System, a discussion about the Ward System B. Review Agenda Acting Administrator Brown stated Item 9.A, Schedule a was placed on the agenda as a place holder the at a work session just prior to this meeting. Wellens moved, Bailey seconded, A ,) ill \ APPROVAL OF MINutE~11 A. City councll!W>>~~ idl {, 'lll, Woodruff moved, Bailey ~lt~nded, proving the City Council Work Session Minutes of April 28, 2008, as presented. Motion pH.~d 4 . '1!ll'lll B. City Council Reg~lar Meeting Minutes, April 28, 2008 presented. Motion passed 4/0. 2. lnql~,jnutes, April 28, 2008 w j' ~ Wellens moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of April 28, 2008, as presented. Motion passed 4/0. 3. CONSENT AGENDA Acting Mayor Turgeon reviewed the items on the Consent Agenda. Wellens moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List (This item was moved to Item 9.D under General/New Business.) 1#2B I SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 12, 2008 Page 2 of7 B. Adopting RESOLUTION NO. 08-034, "A Resolution Approving a Gambling License for American Legion Post 259." C. Adopting RESOLUTION NO. 08-035, "A Resolution Approving Intoxicating Liquor License On-Sale, Intoxicating Liquor and Special Sunday Sales, for the Minnetonka Country Club."; RESOLUTION NO. 08-036, "A Resolution Approving Intoxicating Liquor License On-Sale, Intoxicating Liquor and Special Sunday Sales, for American Legion Post #259."; RESOLUTION NO. 08-037, "A Resolution Approving a 3.2 Percent 'Off-Sale' Malt Liquor License, for Cub Foods."; RESOLUTION NO. 08-038, "A Resolution Approving an Off-Sale Intoxicating Liquor License, for Park Square Subway, Inc., dba Shorewood Liquor."; and RESOLUTION NO. 08-039, "A Resolution Approving an Off-Sale Intoxicating Liquor License, for The Cellars Wines & Spirits of Shorewood, Inc." D. E. Authorize Expenditure of Funds for Seal Coat lI~gregate (This item was moved to Item 9.C under GeneralINew Business')'ll1'! I, ff~~.~.~.h} ~~::~~r Proposal for Providing sea~~R~i, pafktlln~d Dock Patrol Services in J ~.i ' 'c, I ![!:;t," >c ',. . I, "p. ,.II h ,h.. II item" 'inbved to Item 9.E under GeneralINew Appeal Notice to Remove (This Business. ) Appellant: Location: Comm~ 20540 - l~!l\ ~ortgagijmund LLC ~1~F;'fj~ot Boulevard rf F. 5. REPORTS h ml ,-' if' "\li'ie~~ning. 4. MATTERS FROM THE Fli~ ,t' ifi"{il There were no matters from the floor ~ None. 6. PUBLIC HEARING None. 7. PARKS Acting Administrator Brown stated there had not been a Park Commission meeting since the last regular Council meeting. The next meeting was scheduled for May 13, 2008. 8. PLANNING Commissioner Gniftke stated there had not been a Planning Commission meeting since the last regular Council meeting; the meeting scheduled for May 6, 2008, had been canceled. SHORE WOOD CITY COUNCIL REGULAR MEETING MINUTES May 12, 2008 Page 3 of 7 9. GENERAL/NEW BUSINESS A. Schedule a Public Hearing Date Regarding Ward System Acting Mayor Turgeon stated Council had discussed the ward election system at a work session preceding this meeting. This item provided Council the opportunity to take action to schedule a public hearing on June 9, 2008, for the ward election system. WO'O'druffmO'ved, Wellens secO'nded, scheduling a public hearing fO'r the ward electiO'n system. Councilmember Bailey questioned if there was any Council direction for Staff. Director Nielsen stated Staff would prepare a resolution identifying 2008 polling locations and a draft ordinance amending Chapter 106 of the City Code prior to the meeting should Council decide to take action at the June 9, 2008, Council meeting. ,Pl. ,1' WithO'ut O'bjectiO'n frO'm the secO'nder, the maker O'f the mO'~UmlhJPended the mO'tiO'n directing Staff to' prepare a resO'lutiO'n identifying 2008 pO'lling IO'c~t;(t~s, ~"~, 0' prepare a draft O'rdinance amending Chapter 106 O'f the City CO'de in the eventJI'e''cO'uncil . e~ to' change the system fO'r electing City O'fficials. MO'tiO'n passed 4/0. IlIi,;"", 1,'1',1" It' ' . "lhh.~11 11" B. AuthO'rize NO'tices to' CO'nnect f~,~he City's~nit~ry Sewer System llhllll '., ,111!l' Engineer Landini explained the ComprehensiveIIPlY~I!_d'i:~!itY Ordinance 904 required all property owners connect houses on their property to the pU~fffsanit#W sewer if the sewer abuts the property. The City~s rec~rds indicate six hous~s inood cufftntly are on septic sys~ems and thr.ee of~hem abut a publIc samtary sewer. The Ordmf} es that Iuoperty owners abuttmg the publIc samtary sewer, shall connect within 90 days ofnotifi " ~lCity. Landini stated the meeti~I~~~~~:I~1 ~U_It!bpies of letters to the owners whose properties abut the public sanitary sewer; tH~IlJ+Jiters prov] notice of the requirement to connect to the public sanitary sewer to comply with .City Code. OOln~ted S ff recommended Council authorize the notice and direct Staff to transmIt the notIce to the three ~l~fl~~ owners. II' Councilmember Wellens stated 'he believed the three affected property owners had known of the requirement to connect to the public sanitary sewer for years. Councilmember Woodruff stated neighbors of one of the property owners had complained about the odor emitting from that property owner's septic system. Wellens mO'ved, WO'O'druff secO'nded, authO'rizing the nO'tice and directing Staff to' transmit the nO'tice to' the O'wners O'f the prO'perties IO'cated at 5220 Shady Island Circle, 4405 Enchanted PO'int, and 26750 SmithtO'wn RO'ad. MO'tiO'n passed 4/0. C. AuthO'rize Expenditure of Funds for Seal Coat This item was removed from the consent agenda at Councilmember Bailey's request. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 12,2008 Page 4 of7 Councilmember Bailey asked Acting Administrator Brown to explain the problems the City encountered with the Polymerized Asphalt Emulsion (i.e., "Slurry Coating") process, and Staffs recommendation to add a polymer to the sealcoat process to try to bolster the process. Acting Administrator Brown explained "Slurry Coating" was tested on Covington Road and Smithtown Circle in 2007. On both of the test roadways there were places where the product failed to adhere. The contractor had offered to reapply the product; it had assured the City at the start that it would address any adhesion problems. Staff had concerns about again inconveniencing the residents and the school bus community by closing Covington Road so the product could be re-applied. Monetary compensation was considered to be a better solution. Brown went on to explain there was an option to add a polymer to the sealcoat process to try to bolster the process. Staff researched the polymer additive option and contacted other cities using the polymer additive. Those cities found the additive to extend the life of the sealcoat. Brow~ s~ated S~affwas still in discussion~ with representati.v~s. O!I,Jl~I~o~lder B.ridg~ Farm Homeowners AssociatIon which had approached the City about the posslbtlltyIU~i~lacmg a bltummous overlay on the street instead of sealcoat; the Association would pay the ~:i,{f~~ence ,I~l~ost between the overlay and the sealcoat. Although the roadways in the Boulder Bridget:arm 'were iden~~d,to be seal coated in the bid, the City was not obligated to seal coat the roadways sp~; . libe contra~tlabcuments stated the City had I ' :' _:: ~": # the right to add and delete roadways identified for sea ~ing> He explained the City made a yearly purcha.se of rock for roadway maintenance, an~any exces I~ck purchased was stockpiled for use the followmg year. 'dllUt',IIIII" 111. IItj111l1ll;.".,i In response to a question from Councilmember Batl~)!! Adl~trAdministrator Brown stated the contractor responsible for the Slurry Coating,~ [essed ~lcommitment to fulfill the performance guarantees identified in the contract. He nowdlfij rtra~ts fO~ltlie sealcoating process also contain performance clauses. ,} !IUU1U1Wi/ t~,t {:sot J liillmlllllll H Bailey moved, Wellens onded, ithe quote from Martin Marietta Materials, Inc., for seal coat aggregate. assed D. IV~i led Claims List This item was removed from the ~onsent agenda at Councilmember Woodruffs request. Councilmember Woodruff explained the verified claims list included check number 46565 for an amount of $100 for Rebecca Fish; Ms. Fish was a volunteer gardener with the adopt-a-garden program and was responsible for the garden at City Hall. He questioned if it was prudent to invest in the City Hall garden when the City Hall renovation project would be in process during the summer months. He related Ms. Fish suggested the $100 be used for a different garden, and feedback from other volunteer gardeners was to invest these funds in the garden at Freeman Park. Director Burton then requested check number 46582 for an amount of $1 00 for Cindy Marceau be added to the verified claims list; Ms. Marceau was the volunteer gardener for the garden at Manor Park. In response to a question from Councilmember Bailey, Acting Administrator Brown stated the Parks Department works with the volunteer gardeners and Park Commission Chair Davis met with the volunteer gardeners to solicit their feedback. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 12, 2008 Page 5 of7 Woodruff moved, Bailey seconded, approving the verified claims list subject to the removal of check number 46565 for an amount of $100 for Rebecca Fish and the addition of check number 46582 for an amount of $100 for Cindy Marceau. Motion passed 4/0. E. Appeal Notice to Remove Appellant: Commercial Mortgage Fund LLC Location: 20540 - 20542 Excelsior Boulevard This item was removed from the consent agenda at Councilmember Woodruff's request. Councilmember Woodruff stated the Staff report stated the developer who planned to buy the property located at 20540/20542 would remove offensive and unhealthy substances on the property. He questioned if it was realistic to expect that the new owner would do that. Director Nielsen stated Staff expected Commercial Mortgage Fund .hJ-C would notify the new owner of the Notice to Remove. He explained Kenneth Sorteberg, CEO .~ttf1'tommercial Mortgage Fund, had requested an extension of time to remove items in violation. M,iifS' berg indicated once the new owner was in possession 9f the property (a closing was schedu\1.~lfor 9, 2008), the developer would perform the clean up of the property. Staff recommenH ah extensl hhpe granted to May 19, 2008. Nielsen stated he would contact Commercial Mortga d t~,ensure thqlHew owner had been notified of the Notice to Remove. IlkIJ1I"'" 1111 Woodruff moved, Wellens seconded, grantidUI.,,,, extensid~i~' the Notice to Remove to May 19, 2008, for the property located at 20540/20542 Blce'n.D()ulevard. Motion passed 4/0. !f I '<fHW nr ;; 10. ENGINEERING/PUBLIC,r' 'I, ,{lllh, lln' A. Approve Plans andl ~"s" and Authorize Advertisement for Bids for the 2008 Mill.ltIJ__rt,a ect, City Project 08-04 Engineer Landini introdtl~~.the top) ans and specifications and authorization for advertisements for bids for the 2008 Mill 'ldttd, Over. y Project. He explained the adopted 2008 Operating Budget allocated funds for road main'trmpee; $100,000 for sealcoating and $200,000 for additional road maintenance. Staff proposed $120~Dno of the total amount budgeted be used for mill and overlay, and the remaining $180,000 be used for seal coating. The roadways chosen for the mill & overlay must have a foundation capable of supporting the surface and have a P ASER rating of 4 or higher. The roadways scheduled for 2008 mill & overlay were Blue Ridge Lane, Cathcart Drive, and Apple Road; all satisfy the criteria identified. Landini stated Staff recommended approval of the resolution which would approve the plans and specifications and authorizes advertisement for bids for the 2008 Mill & Overlay Project. Wellens moved, Bailey seconded, Adopting RESOLUTION NO. 08-040, "A Resolution Approving Specifications and Estimate and Authorizing Advertisements for Bids for 2008 Mill & Overlay, City Project 08-04." Councilmember Bailey questioned if the plan was to mill and overlay other roadways with a P ASER 4 rating in subsequent years. Acting Administrator Brown explained it was Staff's intent to prepare a 20- year plan for roadway improvements, and financing of roadway improvements would be discussed during SHORE WOOD CITY COUNCIL REGULAR MEETING MINUTES May 12, 2008 Page 6 of7 the budget process. He stated although the discussion was generally about maintaining the worst roadways, it may be more effective to maintain the condition of good roadways. Motion passed 4/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff 1. City Hall Remodeling Project Update Acting Administrator Brown stated at its May 27,2008, meeting Council would be asked to approve the plans and specifications and authorize advertisements for bids for the City Hall Renovation Project. Director Nielsen commented Council would be provided a timeline for the bidding process at that same meeting, and based on the time line it may be necessary to have liIl special Council meeting after bid opening to award the bid expeditiously. .....I..~li.,i. ..11111 ,I' II Councilmember Woodruff suggested Staff prepare a recomme<<~atiojJl of hiring a construction manager for the project. Actin1atllinistrato item to the May 27, 2008, City Council work session ..da. \1. 11....1.:.. ...... ...11111, 11\' C. Ad . . S U II.! Ity mlDlstrator earch pdatt5IH! ~.. f__... _. _ t " ~.r 'i.i.'.:. i I t.1 t t ~i.l.-I m ~:i~' !',y _ dJ~ Acting. Administrator Br~wn. stated S?aron ~~ 1.lI)Yj~.~,,5prin~s~ed Incorporated, had received credentIals from three partIes mterested m the CIt)l1 mf,Wator pOSItIon and there had been a number of inquiries about the position. Ms. will re I w the resumes at the May 27, 2008, Council work session. 'th pros and cons for the benefits wn stated he would add that If ~ 2. Acting Administrator Bro,,:p! Deephaven City Administf.'ator You if for the Center. The RFP ld be pr Brown stated there were twot~ntial 'w, I 1~: 1'... _ .- i Acting Administrator Brown stat~~'ihere was a joint meeting scheduled for 7:00 P.M. on May 14,2008, for all South Lake Minnetonka Police Department (SLMPD) member cities' councils; Chief Litsey would present the SLMPD Strategic Action Plan. He noted he had distributed electronic copies of the Plan to Council. ting earlier today of the Southshore Center working group, a draft request for proposal (RFP) for potential tenants to the group for final consideration. Acting Administrator ants. B. Mayor & City Council Acting Mayor Turgeon stated the Park Commission was conducting a tour of the City Parks on May 13, 2008. Councilmember Wellens stated he had discussions with a councilmember from one of the Excelsior Fire District (EFD) member cities' councils about changing the Fire District's budget process. In the proposed process the member cities' councils would agree to a budget increase percent for the upcoming year, and the budget would be prepared not to exceed that increase. Acting Mayor Turgeon stated she preferred that approach. Councilmember Woodruff stated it would be easier to prepare a budget if the increase was SHORE WOOD CITY COUNCIL REGULAR MEETING MINUTES May 12, 2008 Page 7 of7 specified in advance. Items that could not be funded with that level of budget could then be identified, and if the items were necessary the budget could be increased accordingly. Councilmember Bailey stated there were two levels to a budget: I) inflation growth from the previous year (the baseline budget); and 2) any increase in service. He questioned if Councilmember Wellens was recommending additional services be funded out of the baseline budget, or was he recommending the baseline budget with additional services be added on top of the baseline budget. Councilmember Wellens stated he was recommending the latter. There was agreement that Councilmember Wellens could present that idea at the next EFD Board meeting scheduled for May 28, 2008. 12. ADJOURN RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Hi Regular Meeting of May 12, Wellens moved, Woodruff seconded, Adjourning the City 2008, at 7:44 P.M. Lawrence A. Brown, Acting (; I" <";:t;il"< . . ~~~ra Turgeon, Actmg Mayor llill" "lih 3' ATTEST: PAYABLESAPPROVALS For OS/27/2008 Council Meeting preparedb~:/ /;,.. . ~. . ~ Date:8~b;L/n Michelle T. Nguyen, . Accounting Clerk I Reviewed by: ~~~ Date: 85P;;"'!J-/JOf!:, Bonnie Burton, Finance Director Approved by: d AIi---- Date: Ds-!!::-z.!zooe. ~wn, Acting City AdmInIstrator 1f::.3Pt PAYROLL APPROVALS For OS/27/2008 Council Meeting Prepared by':7;/lrA /--1~ -" Date: M i.2J'1 Michelle T. Nguyen,! Sr. ~ccounting Clerk I ~~ Date: @5P~JJxJ8 CITY OF SHOREWOOD 575S<COUNTRY CLUB ROAD' SHOREWOOD, .MINNESOTA 55331-8927 · (952) 474-3236 FAX (952) 474-0128 . www.ci.shorewood.mn.us . cityhall@ci.shorewood.mn.us MEMORANDUM FROM: Mayor and City Council Larry Brown, Acting City Administrator and ~ Director of Public Works TO: DATE: May 22, 2008 RE: Appointment of Temporary Position - Seasonal Help Public Works Annually, the City hires temporary seasonal help to manage mowing, weed whipping and routine grounds maintenance within the City. This year is no exception. Applications for the single position have been reviewed. Mr. Adam Kirscht has applied for the position, and is the preferred candidate. Mr. Kirscht has worked with the Department of Public Works the previous three years and has performed well in this position. Therefore, staff is recommending that Mr. Kirscht be appointed to the position of Temporary Seasonal Worker for the Department of Public Works at a rate of $11.50 per hour. This temporary position will expire at the end of the business day of September 26,2008. Recommendation Staff is recoriunending approval of a motion appointing Mr. Adam Kirscht to the p.6sition of Temporary SeasonalW orker through the end of the business day of September 26, 2008. #35 ,. '.J PRINTED ON RECYCLED PAPER CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, M1NNESOTA 55331-8927. (952) 474-3236 FAX (952) 474-0128. www.cLshorewood.mn.us . cityhall@cLshorewood.mn.us MEMORANDUM DATE: TO: FROM: CC: May 22, 2008 Mayor and City Council Members/W/ j~ Jean Panchyshyn, Deputy Clerk (-d ",,' Larry Brown, Acting City Administrator/Clerk RE: LICENSES AND PERMIT LIST The following license requests to sell Fireworks has been received at the City and reviewed for completeness. The Fire Inspector has inspected and approved each site. As all license requirements have been met, a license has been issued to the Licensees listed. City of Shorewood - 2008 License List 08-54 08-55 08-56 Holiday Stationstore Cub Foods Dollar Tree #3688 19955 StateHwy 7 23800 State Hwy.7 23610 State Hwy 7 Shorewood, MN Shorewood, MN Shorewoqd, MN ~. f: . PRINTED ON RECYCLED PAPER ... #3~ CITY OF SHOREWOOD . 5755 COUNTRY CLUB ROAD 0 SHOREWOOD, MINNESOTA 55331-89270 (952) 474-3236 FAX (952) 414-01280 www.cLshorewood.mn.us 0 cityhall@cLshorewood.mn.us MEMORANDUM TO: Mayor and City Council ~ h_ Larry Brown, Acting City Administrator and J1Y Director of Public Works y .. FROM: DATE: May 21,2008 RE: Authorization to Enter Into a Contract With Safe Assure Consultants The Occupational Safety and Health Association (OSHA) has provided mandates for safety training for all employees. Each year employees must be certified in the followIng items. . Employee Right to Know . Blood Borne Pathogens . Emergency Action Plan Beyond this training, Public Works Personnel shall also be certified annually in the following areas: . AWAIR . Confined Space Entry and Rescue . Personal Protective Equipment . Trench Safety . Forklift/Skid-steer Certification . Traffic Control and Field Operations . Equipment Lockout/Tagout . Hearing Conservation . Respirators . Chainsaw Operations . Defensive Driving Safe Assure Inc. has provided these services as a joint project with eleven other lake area communities. The ability to train with other municipalities provides the opportunity to train at a cost of approximately one tenth the cost of other programs. . Safe Assure also provides an automated Material Data Safety Sheet program. OSHA mandates that every material that an employee comes in contact with must have a Material Data Safety Sheet (MSDS) that outlines health risks, protective equipment to be utilized, and chemical reaction data. Attachment 1 is a sample of an MSDS sheet. This mandate, not only applies to chemicals, but to everyday items such as bolts, wood, and asphalt. The job of keeping M'SDS sheets current for every product that is received is an ominous task, at best. ,. f . PRINTED ON RECYCl.ED PAPER ... #3D Mayor and City Council Proposal Safe Assure Consultants May 21,2008 Page 2 of2 Attachment 2 is the proposal provided by Safe Assure. It is note worthy that this proposal includes preparation and ongoing maintenance of an on line electronic MSDS database. Safe Assure will not only keep MSDS files current, but will also provide consultation to any employee(s) about material data, protective equipment and health risks, and will respond to emergency inquiries. Also included with the services is an annual on site simulated OSHA inspection for Public Works and City Hall. Mr. Chad Petersen of Safe Assure performs these on site inspections. Mr. Petersen has previously been employed with OSHA. The proposed cost for services is $2,775. This cost represents a fraction of the expense that would be incurred by the City if the training sessions were to be obtained elsewhere or outside of the joint sessions with the eleven other municipalities. If approved, this will be funded from the Public Works Operating budget which has $2,850 budgeted for this expense. Recommendation Staff is recommending approval of the proposal provided by Safe Assure Consultants for safety services in the amount of $2,775.00. Chlorine (Liquid or Gas) Date of Preparation: 11/26/01 Material Safety Data Sheet 24 Hour Emergency Phone: CHEMTREC 1-800-424-9300 Revision: 4/28/03 Section 1 - Chemical Product and Company Identification CAS No: 7782-50-5 Molecular Weight: 70.91 Chemical Formula: C12 Distributed by: . Hawkins, Inc. 3100 E. Hennepin Avenue Minneapolis, MN 55413 (612-331-6910) Section 2 - Composition / Information on Ingredients Ingredient CAS No Percent Hazardous ------------ ------- --------- Chlorine 7782-50-5 99.5 - 100% Yes Section 3 - Hazards Identification Emergency Overview STRONG OXIDIZING AGENT. POISON. HAZARDOUS LIQUID AND GAS UNDER PRESSURE. MAY CAUSE CHEMICAL PNEUMONIA AND EVEN DEATH IN HIGH CONCENTRATIONS. MAY CAUSE SEVERE IRRITATION TO SKIN, EYES, AND RESPIRATORY TRACT. LIQUID MAY BURN EYES AND SKIN. CAN REACT EXPLOSIVELY WITH ORGANIC PRODUCTS. Potential Health Effects Inhalation: Severe irritant. Coughing, burning, chest pain, vomiting, headache, anxiety and feeling of suffocation. Severe exposure may cause pneumonitis and pulmonary edema. Ingestion: Chlorine is a gas at room temperature. Ingested liquid chlorine can cause severe burns of the mouth, esophagus and stomach. Nausea and vomiting are likely to occur. Skin Contact: Corrosive! Contact with skin can cause irritation or severe burns and scarring with greater exposures. Eye Contact: Corrosive! Severe irritant. High concentrations or contact can cause burns. Chronic Exposure: Above established exposure limits may result in reduced breathing capacity. Aggravation of Pre-existing Conditions: Persons with pre-existing impaired respiratory function may be more susceptible to the effects of the substance. ATTACHMENT 1 MSDS SAMPLE Chlorine (Liquid or Gas) revised: 4/28/03 24 Hour Emergency Phone: CHEMTREC 1-800-424-9300 II Section 4 - First Aid Measures ~ Inhalation: Remove to fresh air. Get medical attention for any breathing difficulty. Ingestion: If swallowed, DO NOT INDUCE VOMITING. Give large quantities of water. Never give anything by mouth to an unconscious person. Get medical attention immediately. Skin Contact: Immediately flush skin with plenty of water for at least 15 minutes while removing contaminated clothing and shoes. Call a physician, immediately. Wash clothing before reuse. Eye Contact: Immediately flush eyes with plenty of water for at least 15 minutes, lifting lower and upper eyelids occasionally. Get medical attention immediately. Note to Physician: Monitor closely for delayed onset of pulmonary edema and chemical pneumonia. Provide treatment as is medically indicated. Section 5 - Fire-Fighting Measures NFPA Ratings: Health: 4 Flammability: 0 Reactivity: 0 Other: OX Fire: Not considered to be a fire hazard, but does support combustion. Explosion: Reacts explosively or forms explosive compounds, with many chemicals, such as acetylene, turpentine, ether, ammonia gas, hydrogen and finely divided metals. Fire Extinguishing Media: Use any means suitable for extinguishing surrounding fire. Approach fire from upwind. If no chlorine escaping, apply water spray to keep fire-exposed containers cool. DO NOT APPLY WATER TO LEAKING CONTAINERS. Remove chlorine containers from fire zone if possible. Flame impingement on steel chlorine container will result in iron/chlorine fire causing rupture of the container. Special Information: Firefighters should wear self-contained, positive-pressure breathing apparatus, and a one piece, total-encapsulating suit of Butyl coated nylon or equivalent. Section 6 - Accidental Release Measures Evacuate unnecessary personnel. Keep unnecessary and unprotected people upwind from area of spill. Wear appropriate personal protective equipment as specified in Section 8. Contain and recover liquid when possible. Do not flush residues to the sewer. Residues from spills can be absorbed into an alkaline solution such as caustic soda. US Regulations (CERCLA) require reporting spills and releases to soil, water and air in excess of reportable quantities. The toll free number for the US Coast Guard National Response Center is (800) 424-8802. Page of 6 II Chlorine (Liquid or Gas) revised: 4/28/03 24 Hour Emergency Phone: CHEMTREC 1-800-424-9300 Section 7 - Handling and Storage II Keep in a tightly closed container. Protect from physical damage. Store in a cool, dry, ventilated area away from sources of heat, moisture and incompatibilities. Protect from heat.. Containers of this material may be hazardous when empty since they retain product residues (vapors, liquid); observe all warnings and precautions listed for the product. Do not store with aluminum or magnesium. Do not mix with acids or organic materials. Page of 6 Chlorine (Liquid or Gas) revised: 4/28/03 24 Hour Emergency Phone: CHEMTREC 1-800-424-9300 Section 8 - Exposure Controls / Personal Protection Airborne Exposure Limits: Chlorine: -OSHA Permissible Exposure Limit (PEL): 1 ppm Ceiling -ACGIH Threshold Limit Value (TLV): 0.5 ppm (8 hr TWA), 1 ppm STEL Ventilation System: A system of local and/or general exhaust is recommended to keep employee exposures below the Airborne Exposure Limits. Local exhaust ventilation is generally preferred because it can control the emissions of the contaminant at its source, preventing dispersion of it into the general work area. Please refer to the ACGIH document, "Industrial Ventilation, A Manual of Recommended Practices", most recent edition, for details. Personal Respirators (NIOSH Approved) : If the exposure limit is exceeded, a half-face dust/mist respirator may be worn for up to ten times the exposure limit or the maximum use concentration specified by the appropriate regulatory agency or respirator supplier, whichever is lowest. A full- face piece dust/mist respirator may be worn up to 50 times the exposure limit, or the maximum use concentration specified by the appropriate regulatory agency, or respirator supplier, whichever is lowest. For emergencies or instances where the exposure levels are not known, use a full-facepiece positive-pressure, air-supplied respirator. WARNING: Air-purifying respirators do not protect workers in oxygen- deficient atmospheres. Skin Protection: Wear impervious protective clothing, including boots, gloves, lab coat, apron or coveralls, as appropriate, to prevent skin contact. Eye Protection: Use chemical safety goggles and/or a full face shield where splashing is possible. Maintain eye wash fountain and quick-drench facilities in work area. Section 9 - Physical and Chemical Properties Appearance: Greenish-yellow gas, amber liquid Boiling Point: -34C (-29.3F) Odor: Pungent odor Melting Point: -101C (-150F) Solubility: Slight. Vapor Density (Air=l): 2.5 Density: 11.7 lbs/gal @15.6C Vapor Pressure (mm Hg) : 71 psig @ 60F. % Volatiles by weight: 100%. Page of6 Chlorine (Liquid or Gas) revised: 4/28/03 24 Hour Emergency Phone: CHEMTREC 1-800-424-9300 Section 10 - Stability and Reactivity Stability: Stable under ordinary conditions of use and storage. Hazardous Decomposition Products: No hazardous decomposition products. Hazardous Polymerization: Will not occur. Incompatibilities: Dry chlorine is highly reactive with titanium and tin. Reacts with most metals at high temperatures. Reacts with water to produce hydrochloric acids, which are corrosive to most metals. Ammonia, elemental metals, certain metal hydrides, carbides, nitrides, oxides, phosphides and sulfides, easily oxidized materials, organic materials (e.g. oil grease) and unstable and reactive compounds. Conditions to Avoid: Heat, moisture, incompatibles. Section 11- Toxicolo ical Information Chlorine: IDLH = 10 ppm --------\Cancer Lists\------------------------------------------------------ ---NTP Carcinogen--- Ingredient Known Anticipated IARC Category Chlorine (7782-50-5) No No None Section 12 - Ecological Information Environmental Fate: Water: Chlorine is a strong oxidizer and will react rapidly with inorganic compounds. Chlorine will also oxidize organic compounds, but at a slower rate than inorganic compounds. The presence of light accelerates the dissipation of chlorine in water. Environmental Toxicity: Acute LC50 (96 hours) for Fathead Minnow: 0.07 - 0.15 ppm. Acute LC50 (96 hours) for Bluegill: 0.44 mg/l Section 13 - Disposal Considerations Chlorine gas will disperse to the atmosphere leaving no residue. Chlorine may be neutralized by introducing it into caustic soda, soda ash, or hydrated lime. Liquid and/or solid residues from neutralization must be disposed of in a permitted waste management facility. Dispose of container and unused contents in accordance with federal, state and local requirements. II Section 14 - Transport Information II Domestic (Land, D.O.T.) Proper Shipping Name: CHLORINE Hazard Class: 2.3,8 UN/NA: UN1017 Page of6 Packing Group: Chlorine (Liquid or Gas) revised: 4/28/03 24 Hour Emergency Phone: CHEMTREC 1-800-424-93QO RQ, Poison Inhalation Hazard, Zone B, Marine Pollutant. Section 15 - Regulatory Information --------\Chemical Inventory Status - Part 1\-------------------------------- Ingredient TSCA EC Japan Australia Chlorine (7782-50-5) Yes Yes Yes Yes --------\Chemical Inventory Status - Part 2\-------------------------------- --Canada-- Ingredient Korea DSL NDSL Phil. Chlorine (7782-50-5) Yes Yes No Yes -------\Federal, State & International Regulations - Part 1\---------------- -SARA 302- ------SARA 313------ Ingredient RQ TPQ List Chemical Catg. Chlorine (7782-50-5) 10 100 Yes No --------\Federal, State & International Regulations - Part 2\--------------- -RCRA- -TSCA- Ingredient CERCLA 261.33 8(d) ----------------------------------------- ------ Chlorine (7782-50-5) 10 No No Chemical Weapons Convention: No TSCA 12(b): No CDTA: No SARA 311/312: Acute: Yes Chronic: No Fire: Yes Pressure: Yes Reactivity: No (Pure / Liquid) Section 16 - Other Information Prepared By: Chris W. Gibson Revision Notes: Updated Section 14 Disclaimer: Please be advised that it is your responsibility to inform your employees of the hazards of this substance, to advise them of what these properties mean and be sure they understand exposure information. The information presented herein, while not guaranteed, was prepared by competent technical personnel and is true and accurate to the best of our knowledge. No warranty or guaranty, express or implied, is made regarding performance, stability, or otherwise. This information is not intended to be all-inclusive as to the manner and conditions of use, handling, and storage. Other factors may require additional safety or performance considerations. While our technical personnel will be happy to respond to questions regarding safe handling and use procedures, the handling and use remains the responsibility of the customer. No suggestions are intended as, and should not be construed as, a recommendation to infringe on any existing patents or to violate any Federal, State, or local laws. Page of6 I I I I I I I I I I I I I I I I I I I ~ ..... \ safeAssure ,~.. ~ ..... \ S..f~SSUre ,~.. I I I I I I I I I I I I I I I I I I I 1 The United States Department of Labor, Division of Occupational Safety and Health Administration and the Minnesota Department of Labor, Division of Occupational Safety and Health Administration require employers to have documented proof of employee training and written procedures for certain specific standards. The attached addendum and training schedule clarifies written and training requirements. The required standards that apply to The City of Shorewood are listed below: A. W .A.I.R. MN Statute 182.653 "An employer covered by this section must establish a written Work-place Accident & Injury program that promotes safe & healthful working conditions". EMERGENCY ACTION PLAN 29 CFR 1910.35 THRU .38 "The emergency action plan shall be in writinJ~ and shall cover the designated actions employers & employees must take to insure employee safety from fire & other emergencies ". CONTROL OF HAZARDOUS ENERGY 29 CFR 1910.147 & MN Statute 5207.0600 "Procedures shall be developed, documented & utilized for the control of potentially hazardous energy when employees are engaged in the activities covered by this section ". HAZARD COMMUNICATIONS 29 CFR 1910.1200 & MN Statute 5206.0100 thru 5206.1200 "Evaluating the potential hazards of chemicals, and communicating information concerning hazards and appropriate protective measures to employees may include, but is not limited to, provision for: development & maintaining a written hazard communication programfor the work-place... " RECORDING AND REPORTING OCCUPATIONAL INJURIES AND ILLNESSES 29 CFR 1904 "Each employer shall maintain in each establishment a log and summary of all occupational injuries and illnesses for that establishment. . . . . . . . . . .. " I I I I I I I I I I I I I I I I I I I 2 CONFINED SPACE 29 CFR 1910.146 If the employer decides that its employees will enter permit spaces, the employer shall develop and implement a written permit space program. . . . . . . . RESPIRATORY PROTECTION 29 CFR 1910.134 Written standard operating procedures governing the selection and use of respirators shall be established. OCCUPATIONAL NOISE EXPOSURE 29 CFR 1910.95 The employer shall institute a training program for all employees who are exposed to noise at or above an 8-hour time weighted average of 85 decibels, and shall ensure employee participation in such a program. BLOODBORNE PATHOGENS 29 CFR 1910.1030 Each employer having an employee(s) with occupational exposure as defined by paragraph (b) of this section shall establish a written Exposure Control Plan designed to eliminate or minimize employee exposure. POWERED INDUSTRIAL TRUCKS 29 CFR 1910.178 "Only trained and authorized operators shall be permitted to operate a powered industrial truck. Methods shall be devised to train operators in the safe operation of Powered Industrial Trucks". GENERAL DUTY CLAUSE PL91-596 "Hazardous conditions or practices not covered in an O.S.H.A. Standard may be covered under section 5(a)(1) of the act, which states: Each employer shall furnish to each of {their} employees employment and a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm to {their} employees. " LOGGING OPERATIONS 1910.266 (i)(l) The employer shall provide training for each employee, including supervisors, at no cost to the employee. I I I I I I I I I I I I I I I I I I I 3 OPERATION OF MOBILE EARm-MOVING EQUIPMENT. Training programs shall be developed and instructed by competent individuals who have knowledge, training, experience, and the demonstrated ability to identify existing and predictable hazards related to the subject matter. EXCA V ATIONS/TRENCIDNG 1926.651 (k)(l) Daily inspections of excavations, the adjacent areas, and protective systems shall be made by a competent person for evidence of a situation that could result in possible cave-ins, indications of failure of protective systems, hazardous atmospheres, or other hazardous conditions. PERSONAL PROTECTIVE EQUIPMENT 1926.95 a) "Application. " Protective equipment, including personal protective equipment for eyes, face, head, and extremities, protective clothing, respiratory devices, and protective shields and barriers, shall be provided, used, and maintained in a sanitary and reliable condition wherever it is necessary by reason of hazards of processes or environment, chemical hazards, radiological hazards, or mechanical irritants encountered in a manner capable of causing injury or impairment in the function of any part of the body through absorption, inhalation or physical contact. OVERHEAD CRANES 1910.179(j)(3) Periodic inspection. Complete inspections of the crane shall be performed at intervals as generally defined in paragraph (j)(l)(ii)(b) of this section, depending upon its activity.................... . ERGONOMICS 29 CFR PART 1910.900 mRU 1910.944 "Training required for each employee and their supervisors must address signs and symptoms of MSD's, MSD hazards and controls used to address MSD hazards." I I I I I I I I I I I I I I I I I I I 4 In the interest of Quality Safety Management, it is recommended that written procedures and documented employee training also be provided for the following Subparts. (Subparts represent multiple standards) 1910 Subparts Subpart D - Walking - Working Surfaces Subpart E - Means of Egress Subpart F - Powered Platforms, Man-lifts, and Vehicle-Mounted Work Platforms Subpart G - Occupational Health and Environmental Control Subpart H - Hazardous Materials Subpart I - Personal Protective Equipment Subpart J - General Environmental Controls Subpart K - Medical and First Aid Subpart L - Fire Protection Subpart M - Compressed Gas and Compressed Air Equipment Subpart N - Materials Handling and Storage Subpart 0 - Machinery and Machine Guarding Subpart P - Hand and Portable Powered Tools and Other Hand-Held Equipment. Subpart Q - Welding, Cutting, and Brazing. Subpart S - Electrical Subpart Z - Toxic and Hazardous Substances 1926 Subparts Subpart C - General Safety and Health Provisions Subpart D - Occupational Health and Environmental Controls Subpart E - Personal Protective and Life Saving Equipment Subpart F - Fire Protection and Prevention Subpart G - Signs, Signals, and Barricades Subpart H - Materials Handling, Storage, Use, and Disposal Subpart I - Tools - Hand and Power Subpart J - Welding and Cutting Subpart K - Electrical Subpart L - Scaffolds Subpart M - Fall Protection Subpart N - Cranes, Derricks, Hoists, Elevators, and Conveyors Subpart 0 - Motor Vehicles, Mechanized Equipment, and Marine Operations Subpart P - Excavations Subpart V - Power Transmission and Distribution Subpart W - Rollover Protective Structures; Overhead Protection Subpart X - Stairways and Ladders Subpart Z - Toxic and Hazardous Substances Applicable MN OSHA 5205 Rules Applicable MN OSHA 5207 Rules Applicable MN OSHA 5206 Rules (Employee Right to Know) I I I I I I I I I I I I I I I I I I I 5 All training on the programs written by SafeAssure Consultants, Inc. and services provided by DAMARCO Solutions, LLC, will meet or exceed State and/or Federal OSHA requirements. These programs/policies and procedures listed on the addendum do not include the cost of hardware such as labels, signs, etc. and will be the responsibility of The City of Shorewood to obtain as required to comply with OSHA standards. Our contract year will begin on the signing of this proposal/contract. Classroom training will be accomplished at a time convenient to most employees/management and so selected as to disrupt the workday as little as possible. All documents and classroom trainin2 produced by SafeAssure Consultants for The City of Shorewood are for the sole and express use by The City of Shorewood and its employees and not to be shared, copied, or used by any division, department, subsidiary, or parent organization or any entity whatsoever, without prior written approval of SafeAssure Consultants. It is always the practice of SafeAssure Consultants to make modifications and/or additions to your program when necessary to comply with changing OSHA standards/statutes. These changes or additions, when made during a contract year, will be made at no additional cost to The City of Shorewood All written programs/services that are produced by SafeAssure Consultants, Inc. are guaranteed to meet the requirements set forth by MNOSHA/OSHA. SafeAssure Consultants, Inc. will reimburse the City of Shorewood should MNOSHA/OSHA assess a rme for a deficient or inadequate written program that was produced by SafeAssure Consultants, Inc. SafeAssure Consultants, Inc. does not take responsibility for rmancial loss due to MNOSHA/OSHA fines that are unrelated to written programs mentioned above. I I I I I I I I I I I I I I I I I I I 6 ADDENDUM SAFETY PROGRAM RECOMMENDATIONS The City of Shorewood Written Programs & Training A.W.A.I.R. (A Workplace Accident and Injury Reduction Act) . maintain site specific program · documented training of all personnel . accident investigation · simulated OSHA inspection · safety committee advisor Employee Right to Know/Hazard Communication . maintain site specific program . documented training of all personnel (general and specific training) · various labeling requirements . assist in maintaining DAMARCO Solutions, LLC, MSDS and data base . Lock Out/Tag Out (Control of Hazardous Energy) · maintain site specific program · documented training of all personnel Emergency Action Plan · maintain site specific program · documented training of all personnel Respiratory Protection · maintain site specific program . documented training of all personnel Bloodborne Pathogens I I I I I I I I I I I I I I I I I I I 7 · maintain site specific program . documented training of all personnel Cranes-Chains-Slings · maintain site specific program · documented training of all personnel (inspections) Hearing Conservation (Occupational Noise Exposure) · maintain site specific program · documented training of all personnel · decibel testing and documentation Personal Protective Equipment · maintain site specific program . documented training of all personnel Confined Space · maintain site specific program · documented training of all personal Trenching & Excavation (competent person training in second year) · maintain site specific program · documented training of all personnel Earth Moving Equipment/Motor Vehicles · maintain site specific program · documented training of all personnel Powered Industrial Trucks/Forklifts · maintain site specific program · documented training of all personnel · testing and licensing I I I I I I I I I I I I I I I I I I I 8 Ergonomics · maintain/write site specific program · documented training of all personnel o job hazards-recognition o control steps o reporting o management leadership requirements o employee participation requirements General Safety Requirements · maintain site specific program · documented training of all personnel Miscellaneous-Included in Contract . Limited On- Line training . Safety Committee Advisor · Employee Safety Progress Analysis . SafeAssure "Client Discount Card" from "Fastenal Stores or Catalogs" (150/0 off any item) . Discount on any SafeAssure Services programs (Fire Department-Quanitative Fit Testing of SCBA) . MSDS on line data base · Workplace Hazard Assessment · Training manual maintenance . Safety manual maintenance . Documented decibel tesing · Documented air quality readings-( C02 testing in shops with 5 or more vehicle capacity) · Documented foot-candle readings (if needed) · OSHA recordkeeping · General Duty Clause · Assistance during an actual OSHA inspection . General safety recommendations · "ALERT" data base · Unlimited consulting services I I I I I I I I I I I I I I I I I I I 9 In consideration of this signed monetary agreement/contract, for the period of twelve months from the signing date, SafeAssure Consultants, Inc. will act as a consultant to, and/or perform the function of "Safety Manager" for The City of Shorewood. SafeAssure Consultants, Inc. will provide unlimited consulting services, conduct classroom-training sessions ("see Tentative Training Schedule"), write and/or maintain mandatory OSHA programs and provide a MSDS management service. ANNUAL TOTAL WITH MSDS SERVICE $ 2775.00 The City of Shorewood Date The City of Shorewood Date ~In~ ~1A~ SafeAssure Consultants, Inc. lift '1>) ~ f Date f',h~ ~ D te (SEAL) This contract is for the period of twelve months, from May 2008 thru April 200t. q CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927' (952)474-3236 FAX (952) 474-0128. www.cLshorewood.ml'j.us. cityhall@cLshorewood.mn.us MEMORANDUM FROM: City Council Larry Brown, Actipg City Administrator &' ItI't~ Director of Public Works j/I/ TO: DATE: May 22, 2008 RE: Authorization for Expenditure of Funds for Fuel Tanker Trailer, Public Works The Department of Public Works currently has a trailer that has been modified with a tank chained to the bed that has served for the transport of diesel fuel. The existing trailer was salvaged from a spring clean up event approximately fourteen years ago and was modified for refueling. N()t only has this trailer reached the end of its practical service life, but has recently been found to violate many, if not most of the standardsJor containers forthe transport of fuel. This piece of equipment also serves as a vital part of the City of Shore wood's emergency management operations. The ability to transport fuel by tanker allows the City to refuel emergency generators used to power the public worksbuilding, the sanitary sewer lift stations and the water systems. On a more toutine basis, this serves as a refueling depot for grounds master mowers, skid steer and agricultural equipment used in the departm~nt. Recently, during a routine discussion regarding equipment and emergency response scenarios, the discussion gravitated towards the ability to refuel trucks,.. generators, squad cars or fire engines, should a large scale emergency occur. Staff reviewed this scenario under our current operations and has concluded that the ability to have a small backup supply of diesel fuel and gasoline would be very advantageous for both p~blic works and public safety. Thus, staff b~gati to investigating quotes for a 500 gallon fuel trailer with an interior baffle with pumps to transport 250 gallons of each type of fuel. This trailer was actually scheduled for replacement in the 2007 Capital Improvement Program (CIP), with an amount of $7,827 listed at that time. Attachment 1 is an excerpt of the 2007 CIP. This purchase was not made in 2007, as staff did not have adequate time to research designs and obtain quotes for this equipment in 2007. Quotes have been obtained and staff is requesting that this purchase be authorized for 2008. ~. tJ PRINTED ON RECYCLED PAPER IIjC Mayor and City Council Authorization for Purchase of a Fuel Trailer May 22, 2008 Page 2 of2 Quotes for the type of trailer desired were received from two vendors and are shown below. Robert Davis and Son $16,585.00 Attachment 2 and Figure 1. Supplier states no baffle option. Must be two separate tanks mounted on extended trailer. Picture shows only one Tank. Attachment 3 and Figure 2. Supplier meets all requirements, as specified. Discount Equipment $20,306.89 Table 1 Certainly the quotes received are well above what had been originally budgeted. Staff has reviewed this carefully and believes that the advantage of having both types of fuels available is well worth the added cost of the trailer. In addition, the savings from purchasing the used water truck, versus a new truck last year provides more than an adequate reserve in the equipment replacement fund for this purchase. Recommendation Staff is recommending approval for the authorization of expenditure of funds from the equipment replacement program for a 500 gallon fuel trailer as proposed by Robert Davis and Son. City of Shorewood, Minnesota Capital Improvemerlt Program ~ 2011 PROJECTS BY DEPARTMENT Department Pr()ject# 2008 2009 2010 2011 Total IEquipment Replacement I Water Truck-Ford 7000 E-07-45 n/a 50,000 50,000 F350 & Flatbed E-D7-49 n/a 41,031 41,031 F350 4x4 Pickup wlplow E-07-55 n/a 35,349 35,349 Mower - Taro Groundsmaster 325D E-D7-70 n/a 22,093 22,093 Diesel Fuel Trailer 500 Gallons E-D7-71 nla 7,827 7,827 Attach - Blower for Groundsmaster E-07-75 nla 5,757 5,757 Attach -1985 Cabs for Groundmaster E-D7-82 n/a 5,050 5,050 Snow Thrower - John Deere 826 (1970) E-D7-91 nla 947 947 Snow Thrower - John Deere 826 (1972) E-07-92 n/a 947 947 Attach - Flail side mower E-07-93 n/a 16,160 16,160 Attach - Flail rear mower E-07-94 n/a 8.080 8,080 Ford 555 Backhoe E-D8-22 nla 70,257 70,257 Dump Truck - Ford L8000 (1988) E-OB-33 n/a 147,205 147,205 Sweeper-Tennant 240 E-OB-46 n/a 16,059 16,059 Speed Awareness Display E-08-51 nla 24,088 . 24,088 Skid Steer - Bobcat 753 E-OB-76 n/a. 23,887 23,887 Dump Box Rehabilitation and Sander E-09-54 nla 25,533 25,533 Dump Truck - Ford L8000 (1995) E-09-68 nla 153,200 153,200 Tractor - Ford 3910 E-10-35 nla 39,094 39,094 Air Compressor-Ingersoll Rand 185 E-10-38 n/a 16,465 16,465 Trailer 12' Tops E-10-41 nla 3.458 3,458 Dump 1 ton - 4 x 2 Ford F-350 E-10-52 nla 54,131 54,131 Groundsmaster Mower- Taro 328D E-10-57 n/a 26,314 26,314 Mower - Taro Walk Behind 44 E-10-73 n/a 3,308 3,30B Attach2 -1985 Cabs for Groundmaster E-10-82 n/a 6,015 6,015 Trailer 24' . Trail King E-11-21 n/a 23,111 23,111 Mower - Taro Groundmaster 328D (84) E-11-74 n/a 27,892 27,892 Sand Pro 3000 E-11-77 n/a 13,54B 13,548 Equipment Replacement Total 193,241 281,496 178,733 148,785 64,551 866,806 GRAND TOTAL 193,241 281,496 178,733 148,785 64,551 866,806 Attachment 1 2007 CIP 20 .JfJtDlsCDunt 'Equlpm.nt~ Sales Contract Corporate Office 1014 S. Congress Ave. West Palm Beach, FL 33406 561-964-4949 4506 East 7th Ave. Tampa, FL 33605 813-248-2848 Date: Sold To: Address: D/L#: 5/12/2008 POt: City of Shorewood 5755 Country Club Rd. Contact: Brad City: Shorewood State: Mn Email: Phone #1: Phone #2: Dublicworks@shorewood.com Salesman: Internet EQUIPMENT & ACCESSORIES Qty Description 1 Battery . 1 Charger, Battery. 1.5A on board 1 Fill Cap- 1 Tank Guage . 1 Filter, Manifold. 1 Filter, Fuel. 2 Decals. 2 1 Mise 1 U-SMD.8 99-Misc 444291 OPTIONAL EQUIPMENT AND UPGRADES . "1 1 Filter, Manifold. 1 Filter, Fuel- 2 Decals. Unpaid Balance 2591 Old Winter Garden Rd. Orlando, FL 32805 407-291-3162 Zip: 55331 T alai Price $20,306.89 $0.00 $20,306.89 Trade Allowance Difference Extended Warranty D_ler Prep $395.00 $20,701.89 $0.00 $150.00 $20,701.89 $0.00 $20,70:l.89 $O.QO AmounlTaxable Sales Tax and Tille Fees Sub T olal Payoff (trade) Deposi Cash on Delivery Dealer Prep This Deaier PREPARATION includes a complete assembly and systems check; including ail fluids levels, belts, hoses and a safety check of the equipment listed on this buyers agreement. Signed By: Print Name: Date: Accepted by Manager: Attachment 2 High Quote FIGURE 1 No baffle option. Must be two separate tanks mounted on extended trailer. Picture shows only one Tank. Robert Davis and Son Field Pup ~ Fuel Boy TM 832 N State Route One Milford, Illinois 60953 Phone 815-889-4168 Fax 815-889-4390 fieldpup@fieldpuP.com Robert Davis and Son is registered with the U.S. Government CCR (Central Contractor Registry) and certified by the SBA as a veteran owned small business. DUNS # 02-564-4386 5 May 2008 Quotation 050808BM 500-gallon split-tank page 1 of 3 Attn: Brad Mason Qtv. (1) Model FB514S 500-aallon split-tank Field Pup equipped as follows: Trailer: . -15' tandem axle trailer with electric brakes and battery breakaway . 7-pin connector and wiring (runs pump, brakes, lights) . Hitch: 25/16" ball coupler . STR16D tires (steel belt trailer tires) . Spare tire assembly (tire same as above, wheel, mount, lug, jack, pan) . Frame color: choice among red, black, white, medium blue, cat yellow, green . Qty. (2) 40 BC fire extinguishers mounted inside front tool box . Stainless steel ground rod with ground cable and clips Tank: . 500-gallon rectangular single-wall steel tank split 250/250, one side diesel, one side gasoline, each compartment baffled . Full top cage Each compartment equipped as follows: . 3" fill hole with fusible plug and Trident vent assembly . 1" drain plug in bottom end . 4" inspection hole . Tank level gauge . Fuel appropriate signage and placards (one side diesel, one side gasoline) . Fueling equipment for each compartment includes: . 20 GPM 12 VDC UL top mounted pump . Commercial filter assembly (water and particulates) and spare filters . Automatic shut-off nozzle with multi-plane swivel (one diesel, one gasoline) . 30' x 1" UL hose and tank mounted hose rack . 4-digit fuel meter with totalizer (one for each compartment) Other equipment includes: . On board battery system with 115 V AC charger and 50' outdoor cord . 48" front aluminum tool chest with lock . Lights and reflectors . Swivel jack and safety chains . Wheel chocks . 4 corner D-rings for weather or transport tie-down . Courtesy step light . Spill kit Price per unit as above FOB Milford, Illinois: Illinois sales tax, if applicable: Freight to Shorewood, MN area: Total qty. (1) FOB destination: $15835.00 $ -0- $ 850.00 $16585.00 Quotation valid on order placed up to 15 June 2008 Signed: James P. Davis Attachment 3 Low Quote Robert Davis and Son Field Pup - Fuel Boy T.1\1 Quotation 050808BM 500-Gallon Split pane 2 of 3 Options available but not included in above quotation Qty. (2) aluminum side boxes: Qty. (5) stainless wheel covers: Qty. (2) work lights: add $762.00 add $205.00 add $295.00 Tax, lead time, terms Illinois sales tax is not required when the unit is sold to and shipped out of state (Interstate commerce exception), or if tax exempt. Lead-time: approximately three to five weeks after receipt of order. Terms: Our usual terms are 25% at time of order balance within 30 days of invoice following shipping but we can accept your company terms. We abide by all government agencies terms. All funds are to be paid in US dollars. FOB Milford, Illinois unless otherwise noted in quotation. Purchase order not valid unless accepted by Robert Davis and Son. Manufacturer's statement of origin and a certification of sale are provided by Robert Davis and Son following completion of the sale. Specifications for FBS14S SOO-Gallon Unit 1) Tanks manufactured to meet or exceed DOT CFR49/178.346-2 material, and construction and thickness of material. Tanks are designed for Class 3 fuels only. Tanks have (1) 4" top opening with removable plug for inspection and to facilitate cleaning if needed. 2) Axle beams 7000# each 14000# GVWR 3) Brakes 3500# each 14000# GVWR 4) Tires and wheels 3000# each 12000# GVWR 5) Hitches 2 5/16" ball 14000# GVWR or 3" tow ring 20000# GVWR 6) Suspension 14000# GVWR 7) Empty weight - 2900# 8) Loaded weight - 6900# 9) GVWR 12000# 10) Length -15' 11) Width 6'6" 12) Height -7' 13) UL listed explosion proof pump and UL listed hose and equipment Companv Information Contact: Jim Davis Company Information: Robert Davis and Son 832 N State Route One Milford, Illinois 60953 Phone: Fax: 36-3588371 025644386 4CA Y3 815-889-4168 815-889-4390 Federal Taxpayer's 10 Number: DUNS Number: CCR Cage Code Number: Email address: URL: fieldpup~fieldpup.com http://wwwJieldpup.com Robert Davis and Son Field Pup ~ Fuel Boy TM Quotation 050808BM pane 3 of 3 Additional Comments We construct our units to meet or exceed the requirements for safety and performance, including gauge of steel, baffle to head wall distance, no skip welds, DOT-required pressure and vacuum vent, drain, heavy duty axles and suspension, pressure testing, safety equipment, etc. They are manufactured to meet or exceed DOT CFR49/178.346-2 for material and construction and thickness of material. We absolutely do not use a UL-142 tank on our mobile units. Per tank manufacturers, UL-142 is the standard for an above- ground storage tank, required to be marked as not to be moved if the tank contains fuel, uses a dead-weight atmospheric vent that allows fuel to spill out when the tank is in motion, and is not constructed with baffles (baffled tanks are required by DOT to prevent the motion of fuel from potentially knocking out the headwalls). Our units do not require the use of stabilizing jacks on the four corners of the trailer frame, as our units are designed and built for load balance. We do include the front swivel jack on the tongue of the trailer. We use a 7-pin RVI connector plug to run the brakes, lights, and pump. Although sometimes asked to provide a 6-pin connector (which we can do), we encourage the use of the 7-pin. The 7-pin is heavier duty and will handle the power requirements of running the pump, brakes, and lights without problem (the 6-pin is designed for use on a utility trailer to run the brakes and lights). The 7-pin connector plugs into the tow package of the towing vehicle and takes its power from the alternator of the towing vehicle. Back up power for use when the towing vehicle is not present is provided by using our optional on-board battery system, which is a vented steel battery box with a Group 31 deep-cycle battery/sealed marine-type maintenance charger that plugs in with a key disconnect and circuit breaker for protection of the pump and wiring. The battery is wired into the system, and the key used to turn it off and on as needed. The onboard battery system is included in your quotation. Please note the split-tank units are single-wall and not available in a double-wall configuration. Only our single-tank units are available as double-wall for secondary containment. Base unit: Up charge qty. (2) 20 GPM pumps @ $235.00 ea: Qty. (2) 4 digit meters @ $245.00 ea: Spare tire assembly: On board battery system: Total equipment: Pricing Breakdown $13905.00 $470.00 $490.00 $325.00 $645.00 $15835.00 FIGURE 2 One 500 gallon tank with baffle to provide (2) 250 gallon compartments suitable for diesel and gasoline. CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD- SHOREWOOD, MINNESOTA 55331-8927 - (952) 474-3236 FAX (952) 474-0128 ~ www.ci.shorewood.mn.Us - cityhall@ci.shorewood.mn.us MEMORANDUM City council~. ..... Larry Brown, Acting City Administrator ... May 19,2008 Hennepin County Joint Cooperation Agreement for Fiscal 2009-2011 CDBG TO: FROM: DATE: SUBJECT: The City of Shorewood has participated for many years in the Urban Hennepin County Joint Cooperation Program (also referred to as the Consolidated Pool) for the federal Community Development Block Grant (CDBG) program administered by the U.S. Dep~rtment of Housing and Urban Development (HUD). NearlY(i,11 communities in Hennepin County cities, except for the largest ones, participate in the Urban Hennepin County program. Participation with Hennepin County pr~vides for a more efficient use of funds, rather than having small sums accumulate in accounts fOf.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. For the City to continue its participation in this program, it will need to enter into a new agreement. The current agreement expires at the end of the fiscal year, September 30,2008. Hennepin County is requiring that approved and executed agreements be received by June 30. There are no modifications being proposed to the existing agreement except for clarifying the automatic renewal clause in Section III of the proposed agreement (i.e., at the end of the next renewal period on September 30, 2011, the County will notify the participating cities of their rigpt to no longer participate in the UrbariHennepin County Community Development Block Grant (CDBG) Program as stipulated in the agreement; if the cities continue their participation, the agreement will automatically be renewed for another three-year term). RECOMMENDATION: Staff recommends that the City Council adoptthe Resolution approving the 2009-2011 Joint Cooperation Agreement and authorizing its execution. #3P #. f . PRINTED ON RECYCLED PAPER ... CITY OF SHOREWOOD RESOLUTION NO. RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A JOINTCOOPERA TION AGREEMENT BETWEEN THE CITY OF SHOREWOOD AND HENNEPIN COUNTY FOR P ARTICIP A TION IN THE URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM IN FISCAL YEARS 2009-2011 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 (HUD) 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, THEEREFOR, BE IT RESOLVED by the Council of the City of Shore wood that a new Joint Cooperation Agreement between the City and County be approved and executed effective October I, 2008, 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 Shore wood this 27th day of May, 2008 Christine Lizee, Mayor Attest: Lawrence A. Brown, City Administrator/Clerk Contract No. A080541 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: COOPERA TING 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 and HOME Investment Partnership funds as an Urban County within the provisions of the Act as herein defined and, therefore, in consideration of the mutual covenants and promises contained in this Agreement, the parties mutually agree to the following terms and conditions. COOPERA TING UNIT acknowledges 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 9570.3 of the Regulations are incorporated herein by reference and made a part hereof, and the terms defined 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 documents submitted to HUD 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. 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 Community Development Act of 1974, as amended. I. "Program 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. II. PURPOSE The purpose of this Agreement is to authorize COUNTY and COOPERATING UNIT to cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities and authorizes COUNTY to carry out these and other eligible activities for the benefit of eligible recipients who reside within the corporate limits of the COOPERATING UNIT which will be funded from annual Community Development Block Grant and HOME appropriations for the Federal Fiscal Years 2009, 2010 and 2011 and from any program income generated from the expenditure of such funds. III. AGREEMENT The initial term of this Agreement is for a period commencing on October 1,2008 and terminating no sooner than the end ofthe program year covered by the Consolidated Plan for the basic grant amount for the Fiscal Year 2011, 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. Prior to the end of the initial term and the end of each subsequent qualification period, the COUNTY, as the lead agency of the URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, shall provide a written notice to the COOPERATING UNIT of their right not to participate in a subsequent qualification period. The written notice will provide the COOPERATING UNIT a minimum thirty (30) day period to submit a written withdrawal. If the COOPERATING UNIT does not submit to the COUNTY a written withdrawal during the notice period, this Agreement shall be automatically extended for a subsequent three- year qualifying period. This Agreement must be amended by written agreement of all parties to incorporate any future changes necessary to meet the requirements for cooperation agreements set forth in the Urban County Qualification Notice applicable for 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 and HOME 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. 2 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 ofthe authorizing resolution and executed Agreement shall be filed promptly by the COOPERATING UNIT in the Hennepin County Department of Housing, Community Works and Transit, and in no event shall the Agreement be filed later than June 30, 2008. COOPERA TING UNIT and COUNTY shall take all actions necessary to assure compliance with the applicant's certifications required by Section I 04(b) of the Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964; the Fair Housing Act, Section 109 of Title I of the Housing and Community Development Act of 1974; and other applicable laws. IV. ACTIVITIES COOPERA TING UNIT agrees that awarded grant funds will be used to undertake and carry out, within the terms ofthis Agreement, certain activities eligible for funding under the Act. The COUNTY agrees and will assist COOPERATING UNIT in the undertaking of such essential activities by providing the services specified in this Agreement. The parties mutually agree to comply with all applicable requirements of the Act and the Regulations and other relevant Federal and/or Minnesota statutes or regulations in the use of basic grant amounts. Nothing in this Article shall be construed to lessen or abrogate the COUNTY's responsibility to assume all obligations of an applicant under the Act, including the development of the Consolidated Plan, pursuant to 24 CFR Part 91. COOPERATING UNIT further specifically agrees as follows: A. COOPERATING UNIT will, in accord with a COUNTY -established schedule, prepare and provide to the COUNTY, in a prescribed form, requests for the use of Community Development Block Grant Funds consistent with this Agreement, program regulations and the Urban Hennepin County Consolidated Plan. B. COOPERATING UNIT acknowledges that, pursuant to 24 CFR 9570.501 (b), it is subjecttothesame 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. D. COOPERATING UNITS shall expend all funds annually allocated to activities pursuant to this Agreement within eighteen (18) months of the authorization by HUD to expend the basic grant amount. I. With each annual program COOPERATING UNITS shall submit to the COUNTY activity schedules for the completion and expenditure of funds within eighteen (18) months. COUNTY will institute monitoring measures and provide technical or other assistance to insure activities are proceeding on schedule. 2. Funds for activities not expended within eighteen (18) months may be recaptured at the discretion of the COUNTY and distributed by COUNTY as provided for in D. 4. Limited extensions to the expenditure deadlines in this section may be granted by COUNTY upon 3 written request only where the authorized activity has been initiated and/or is subject to a binding contract which provides for the expenditure to be completed within a time period acceptable to COUNTY. 3. Amendments to an annual program by COOPERATING UNITS may be approved by COUNTY up to fifteen (15) months after initial funding has been approved only when the new activity can be completed and funding expended within six (6) months of the amendment approval. Funds not expended within the six (6) month extension period may be recaptured and distributed by COUNTY as provided for in D.4. 4. All funds recaptured by COUNTY will be transferred to a separate account for reallocation on a competitive request for proposal basis at the discretion of the COUNTY where total of such funds is $100,000 or greater. Amounts less than $100,000 shall be allocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. E. COUNTY and COOPERATING UNITS shall expend all program income pursuant to this Agreement as provided below: 1. Program income from housing rehabilitation activities administered by the COUNTY will be incorporated into a pool at the discretion of the COUNTY. The pool will be administered by COUNTY and will be used for housing rehabilitation projects located throughout the entire Urban County. When possible, COUNTY will give priority to funding housing rehabilitation projects within the COOPERATING UNIT where the program income was generated. Funds expended in this manner would be secured by a Repayment Agreement/Mortgage running in favor of the COUNTY. Program income generated by certain COOPERATING UNITS that administer their own housing rehabilitation activities may be retained by the COOPERATING UNIT at its discretion; however, such COOPERATING UNITS will be bound by the conditions ofD.2., above. Only COOPERATING UNITS that were administering their own activities pursuant to the Joint Cooperation Agreement pertaining to the HUD fiscal years 2006-2008 will be eligible to retain their program income. 2. COUNTY reserves the option to recapture program income generated by non-housing rehabilitation activities if said funds have not been expended within twelve (12) months of being generated. These funds shall be transferred to a separate account for reallocation on a competitive request for proposal basis administered by COUNTY or, where the total of such funds does not exceed $100,000, shall be reallocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. F. COOPERATING UNITS are encouraged to undertake joint activities involving the sharing of funding when such action furthers the goals of the Consolidated Plan and meets the expenditure goals. G. If COUNTY is notified by HUD that it has not met the performance standard for the timely expenditure of funds at 24 CFR 570.902(a) and the COUNTY entitlement grant is reduced by HUD according to its policy on corrective actions, then the basic grant amount to any COOPERATING UNIT that has not met its expenditure goal shall be reduced accordingly. H. COOPERATING UNIT will take actions necessary to assist in accomplishing the community development program and housing goals, as contained in the Urban Hennepin County Consolidated Plan. 4 I. COOPERA TING 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 shall, 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 ofthe Housing and Community Development Act of 1974, as amended. L. COOPERA TING 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, technical assistance and coordinating services to COOPERATING UNIT in the preparation and submission of a request for funding. C. COUNTY shall provide ongoing technical assistance to COOPERATING UNIT to aid COUNTY in fulfilling its responsibility to HUD for accomplishment of the community development program and housing goals. D. COUNTY shall, upon official request by COOPERATING UNIT, agree to administer local housing rehabilitation activities funded pursuant to the Agreement, provided that COUNTY shall receive Twelve percent (12%) of the allocation by COOPERATING UNIT to the activity as reimbursement for costs associated with the administration of COOPERATING UNIT activity. E. COUNTY may, at its discretion and upon official request by COOPERATING UNIT, agree to administer, for a possible fee, other activities funded pursuant to this Agreement on behalf of COOPERA TING UNIT. 5 F. COUNTY may, as necessary for clarification and coordination of program administration, develop and implement Administrative Rules consistent with the Act, Regulations, HUD administrative directives, and administrative requirements of COUNTY. v. ALLOCATION OF BASIC GRANT AMOUNTS Basic grant amounts received by the COUNTY under Section 106 of the Act shall be allocated as follows: A. COUNTY shall retain 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 COOPERA TING UNIT and the population of all COOPERATING UNITS. 2. The extent of poverty in COOPERATING UNIT and the extent of poverty in all COOPERA TING 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 ofthis Section in the following manner: 1. All COOPERATING UNITS with aggregate formula percentages of greater than three and one half percent (3.5%) of the total using the procedure in part C. of this section will receive funding allocations in accordance with the COUNTY formula allocations. 2. COOPERATING UNITS with aggregate formula percentages of three and one half percent (3.5%) or less of the total using the procedure in part C. of this section will have their funds consolidated into a pool for award in a manner determined by COUNTY on a competitive request for proposal basis. Only the COUNTY and COOPERATING UNITS whose funding has been pooled will be eligible to compete for these funds. E. The COUNTY shall develop these ratios based upon data to be furnished by HUD. The COUNTY assumes no duty to gather such data independently and assumes no liability for any errors in the data furnished by HUD. F. In the event COOPERATING UNIT does not request a funding allocation, or a portion thereof, the amount not requested shall be made available to other participating communities, in a manner determined by COUNTY. 6 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 2009-2011, 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 COOPERA TING UNIT's eligibility as a metropolitan city prior to July 8, 2008, the COOPERATING UNIT must remain a part of the COUNTY program for the entire three-year period of the COUNTY qualification. VII. OPINION OF COUNSEL The undersigned, on behalf of the Hennepin County Attorney, having reviewed this Agreement, hereby opines that the terms and provisions of the Agreement are fully authorized under State and local law and that the COOPERATING UNIT has full legal authority to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and publicly~assisted housing. Assistant County Attorney 7 VIII. HENNEPIN COUNTY EXECUTION The Hennepin County Board of Commissioners having duly approved this Agreement on May 6,2008, 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: Assistant/Deputy/County Administrator Attest: Deputy/Clerk of the County Board RECOMMENDED FOR APPROVAL Assistant County Administrator - Public Works APPROVED AS TO FORM: Date: Assistant County Attorney Department, Housing, Community Works and Transit Date: Date: APPROVED AS TO EXECUTION: Assistant County Attorney Date: 8 IX. COOPERATING UNIT EXECUTION COOPERATING UNIT, having signed this Agreement, and the COOPERATING UNIT'S governing body having duly approved this Agreement on , 2008, 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 A080541. CITY OF SHOREWOOD By: Its Mayor And: Its City Manager ATTEST: CITY MUST CHECK ONE: The City is organized pursuant to: Plan A Plan B Charter May 13, 2008 9 MUL TIPLE D~~~fGITY LICENSE CI1YOF \ r~/\'( 13 LUlJti 1\PPLICA TION SHOREWOOD \ , v",c S~-\ORE:~ 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOt.A(&l~":t9S2r4'flr-'31~ PLANNING AND PROTECTIVE INSPECTIONS (Please Print or Type) SITE Address: {; 00 t~ LAt:f !;;Tf2--Cl::-J ~~~. l ~ Lot: '304 Block: Subdivision: -11--001 TOw... S-SufS !) . 13s'- p.I.N.:lLl-117 -7. 3-Z i-DO (;;.2.. d- 00(7 t{ OWNER Name: 5t(~R-oJt'/f? D t{AeJfr C:L<JB Telephone:( q5'1-) 474 O~OO Address: b C)c} C-J e;s';;- L-tI?-C 5l/Lcz::I (Street9t1o~~t--t?0 MAJ ~~7'31 (City) (State) (Zipcode) AGENT OR MANAGEMENT REPRESENTATIVE (if different than owner) Name: /41(Cf-/~,- MAu~-y' . Telephone:( 15"2 ).Y7L( obc~o taJ C,J c:S7 L1t1~ S~ (St:~H~'}-:J()iJJ WrJ f~~3( (City) - (State) (Zipcode) Address: NUMBER OF BOAT SLIPS (AUTIIORIZED BY CONDITIONAL USE PERMIT AND LMCD) 11"7 INSPECTIONS (Date) Receipt No. Date: $ .;{.()O X 1/7 ';2 21. '/)(;) ..... LjtpOa.f 5-/3-D'? (Office Use Only - Do Not Write In Shaded Area) )~.;~QNING LICENSE FEE ""or ",',C'. , t1i$mct: L-I( Fee Per Unit: Conforming Use ~ D No. of Boat Slips: Nonconforming Use Total Fee: (Inspector) Initial \CPD:lpliance: Follow-up: In signing this application, I hereby acknowledge that I have reviewed the requirements of the Lakeshore Recreational Zoning District and agree to arrange for necessary inspections to en ure that my property complies with the od. i I Approved: (Compliance Official) (Date) #36-. CITY OF SHOREWOOD . 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (95;2) 474-0128 . www.ci.shorewood.mn.us . cityhall@ci.shorewood.mn.us MEMORANDUM TO: Mayor and City Council FROM: Brad Nielsen DATE: 22 May 2008 RE: Appeal Notice to Remove - Ron Born FILE NO. Property (4865 Ferncroft Drive) In response to a Notice to Remove (see Exhibit A) sent to the owner of the above- referenced property, Ron Born has asked for a 3D-day extension to remove items in violation of City Code (see Exhibit B). The Council has routinely granted 3D-day extensions in instances where the appellant has shown a good-faith effort to comply with the Code. Staffwill inspect the property on Monday before the meeting, and report on the status of the cleanup. If some progress is apparent, it is recommended that the 30 day extension be granted. It is suggested that the property be reinspected on 27 June 2008, after which, if the property is not cleaned up, the City will arrange to do the work and charge the cost of the cleanup to the property owner. cc: Larry Brown Tim Keane Joe pazandak Ron Born :tIJfI ,. f . PRINTED ON RECYCLED PAPER ..,. '-.. 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 DATE: 2 May 2008 TO: Ronald M. Born 4865 Ferncroft Drive Shorewood,~ 55331 PROPERTY LOCATION: 4865 Ferncroft Drive PROPERTY IDENTIFICATION NO.: 26-117-23-14-0031 NOTICE TO REMOVE Offensive and Unhealthy Substances \ NOTICE IS HEREBY GWEN that there exists a condition on the above referenced property which is in violation of Chapter 501, Section 501.05, Subd. 9 of the Shorewood City Code, a copy of which Section is enclosed. The offensive matter to be removed from the property . includes, but is not limited to the following: Water heater; plywood; wood; cement block; truck body parts; transmission; boxes; pails; beer keg; brush; dilapidated retaining wall timbers; trash (bottles, cans, boxes, BBQ grill, bricks, cement debris); similar miscellaneous. You are hereby required to remove the above-described matter and any other offensive matter located on the property and in violation of Chapter 501, Section 501.05 within ten (10) days from the date hereof. In the alternative, you may file a written notice of appeal at the Shorewood City Hall within ten (10) days, in which case your appeal will be set for hearing at the next regularly scheduled meeting of the City Council. If you do not respond to this Notice within ten (10) days, the City shall take whatever legal action as may be necessary to have the offensive matter removed. The costs incurred by the City for such removal shall be charged to the property owner and become a lien against the property. *** PLEASE GIVE TIDS MATTER YOUR IMMEDIATE ATTENTION *** BY ORDER OF THE SHOREWOOD CITY COUNCIL ". r-i-'7~'t f' ,. f: . PRINTED ON RECYCLED PAPER .... ~"~bit A RECEIVED MAY - 9 2008 CITY OF SHOREWOOO ll: ~~~ - ....l!I !-~",t f) . CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD - SHOREWOOD, MINNESOTA 55331-8927- (952) 474-3236 FAX (952) 474-0128 - www.ci.shorewood.mn.us. cityhall@ci.shorewood,mn.us MEMORANDUM DATE: May 21, 2008 TO: FROM: Honorable Mayor and City Council Members Lawrence A. Brown, Acting Administrator _ Bonnie Burton, Finance Director/Treasurer ~ SUBJECT: Comprehensive Annual Financial Report (CAFR) F or the year ended December 31, 2007 The City of Shorewood Comprehensive Annual Financial Report (CAFR) for the year ended December 31,2007 is attached for your review. The CAFR document reports the year's financial activity and the financial status ofthe City at year-end. Also included with the report is the Management Letter and the Minnesota Legal Compliance letter. Mr. Andrew Berg, CPA, a partner with the indep~ndent audit firm of Abdo, Eick & Meyers LLP, will be at the May 27 council meeting to make a presentation about the annual audit of the City's financial activities for the period ending December 31, 2007. Mr. Berg will review the report and answer any questions you may have relative to the report. Following the presentation, the City Council is requested to accept the 2007 Certified Annual Financial Report (CAFR) by simple motion. The City has received the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association for its CAFR for these past many years. This award recognizes outstanding achievement in financial reporting and it is felt that this report continues to meet the high standards of this program. I hope that you find the report comprehensive and easy to read. If you have any questions as you read though the report, please feel free to call and discuss them with me. Likewise, feel free to ask any questions of Andy at Tuesday's meeting. n t.J PRINTED ON RECYCLED PAPER 1f:SR CITY OF SHOREWOOD P ARK COMMISSION TOUR & REGULAR MEETING TUESDAY, MAY 13,2008 5755 COUNTRY CLUB ROAD SHOREWOOD CITY HALL 7:30 P.M. OR IMMEDIATELY FOLLOWING PARK TOURS AT EDDY STATION MINUTES 1. CONVENE PARK COMMISSION MEETING The Park Commission met at City Hall at 5:45 p.m. to depart for t ~~r Park Tour. Commissioners Young and H~n.s Regular Meeting at 7:30pm. d DeMers;.Public illiaison Bailey. A. Roll Call Present: Chair Davis, Commissioners Trent, N~:~,Quin Works Director Brown; Engineer Lct:1.tii;.,and City Absent: tation for the PARK TOUR 1. BADGER PARK ':::, "''''''''''.:':''>' ',,-',- .,,:c.;.... > ,'".,.:., ',," Co' , ,""" ", ,-,,-, ','-',-,. ,.......' "., ........ ,-,- ",-,-.., tionofthefiglJ,tihg an tile are complete; however, . mprove the:::~eld condi ions. He indicated that the field ootball seas,'\ n. Brown reported that the . additional soil was bra would be ready fo~;.; ~~~~cility and tot lot with Brown pointing out er. In ' Hion, Brown stated that the tennis courts, of repair. Landini report and dredges the c been removed. Lan t the S, of Shorewood shares ownership of the beach with T onka Bay <ear the beach. The Commission noted that the phone booth had tated that the parking lot would be seal coated this spring. 3. CATHCART PARK Though located within the Chanhassen City limits, Landini explained that the park itself is owned by Shorewood. He stated that he had scheduled a meeting with the Chanhassen Parks Director next week to discuss an agreement made in 1993 which set up parameters for the shared use of the park. He noted that the tennis courts are second only to Badger Park and that they, too, are in need of dire repair. ':it 1 A PARK COMMISSION MINUTES TUESDAY, MAY 13, 2008 PAGE 2 OF2 Commission observations included: Lack of a park like setting or feel and in need of creating a state park feel Flat appearance Could be laid out more efficiently and user friendly The back side of the tennis court back board needs to be painted to match the entire board Swing set needs to be replaced or removed DeMers stated courts are used quite a bit, but in need of repl:!:ir 'Neighbors have voiced desire for shelter or covered piq;c'~fea Repaving of park trail is necessary Consider adding a row of pines mixed in with th add aesthetic appeal and separation Rink lights are in need of replacement , , Speak to Chanhassen about sharing the e)(IJt::nses to make park int ""., Consider rearranging park and putting,ini armin ouse .' Update park signage 4. FREEMAN PARK Chair Davis suggested the courts be r~~9ved and the par . the addition of a picnic shelter and/or ~tH'" house. e Commissign stopped along Shorewood Oaks Drive to ends in a we dra,inage area behind the little league fields explained . .' the path leading between the homes was ,to direct runoff away from the quote muddy and sa 1 traffic area, the City could use a red rock base to o}lgh it might be costly to do so. He indicated that he :.'expenses associated with each to report back. As the Co . r way towards the little league fields, Brown acknowledged the addition of the d batting cages, which are well used. Continuing on, the Commission requ staff urge the association to clean up the area around and behind the concessions stan" ich was cluttered with debris, wheelbarrows, and other items not needed for upkeep. n was also noted that the old shed near field 2 was to have been removed with the construction of the new shed at that site. As the Commission headed towards the picnic shelter near field 2, Brown pointed out that roofwork, sealing and staining were necessary to maintain this shelter. He commented that this shelter is highly used and rented most of the summer. As the Commission entered the north end of Freeman Park, Brown pointed out where the proposed prairie grasses would be planted at the top of the hill near the back parking area. PARK COMMISSION MINUTES TUESDA Y, MAY 13,2008 PAGE30F3 He pointed out the fire pit installed near Eddy Station as the Commission walked the plaza area. Brown explained that Council member Woodruff suggested the $100 Badger Park grant given to the volunteer gardeners to maintain each of the park gardens be shared amongst the other gardens this year, since the City Hall project will interfere with their efforts at Badger Park this season. Chair Davis suggested that each of the volunteer gardeners be contacted to determine whose need is the greatest this year for the additional funds. She indicat~~~hat Cathcart garden could use some edging and Silverwood was in high need ofbotl:l:ae'Fe'dging to keep the gardens in tact. Commissioners Young and Hensley joined the group~t 7:25pm. Trent moved, Norman seconded, app passed 7/0. A. Review Agenda The Park Tour adjourned to the regular Park.Commission Meeting 1. 2. A. W ork Sessi&~rMeeting Minutes of April 2, 2008 (:':"i~('/:,::~,.",.._:- ,_ -,".:../!. '"':-::"'::.':;,"':""','-,":'",":'" ,~~conded,approving the Work Session Minutes of the issi6:' $ing as submitted. Motion passed 7/0. eeting Minutes of April 8, 2008. ~;11;;jPJ Norman move .~air ~;~V'is seconded, approving the Park Commission Minutes of April 8, 2008, as 'tied. Motion passed 7/0. 3. MATTERS 'FROM THE FLOOR There were none. PARK COMMISSION MINUTES TUESDA Y, MAY 13,2008 PAGE40F4 4. REPORTS A. Report on City Council Meeting Council member Bailey stated that there were few items of concern to the Park Commission, other than the reallocation of some spending, including the reallocation of the garden funds from Badger Park as mentioned. Brown added that the City Council approved the prairie plantings .ong Highway 7 with the addition of a space near the water tower which currently is~( Intenance issue for public works. Trent questioned, if the construction and landscaping would look poor for t properly. 11 as be Trent asked when the City Hall construction process completed. Brown stated that the groundbreaking is estimated for November. ...Jil July, whether the gardens . as not maintained y the construction. in accessing to the community center. ~J!.Odren's Summer Programs I hasJ~.~~~~Jorces with Shorewood to run an orienteering fthe F~~e'Fun Fridays in Freeman this summer. In addition, . hing.tlemo for groups of kids on a Friday this summer 'i~ir own free tackle box. She noted that REI may also put 'x 'Crescent beach. Brown indicated tha I was very excited to participate with the City this summer and commended Park Secretary Grout for her incredible work finding these activity partners for Fun Fridays at Freeman. Chair Davis stated that there would be a link set up on the City web site to see what's happening Fridays at Freeman this summer. C. Update on Arctic Fever Chair Davis stated that REI will also be participating with the City for Arctic Fever this winter giving snow shoe exhibitions and other activities. PARK COMMISSION MINUTES TUESDA Y, MAY 13,2008 PAGES OF 5 Norman added that the new Excelsior business group representative is very excited to link the Arctic Fever event to their ladies nights this winter and plans to playa bigger role in the event. D. Report on Adopt-a-Garden Volunteer Meeting Chair Davis stated that she had met with the volunteer gardeners and a new member, Mary Donohue, volunteered to start a children's vegetable community garden site next year if we can find a spot which is easily accessible to water, sec ',ty, and storage for the garden equipment. Brown reminded the Commission that it is their ch~ge;'todetermine are meeting their proposed purpose as intendedl~ithe Master Plan, and plan be amended or what changes need to be, the p' s themselves. 5. DISCUSS PARK TOURS Chair Davis stated that what concerns her is when the <, ission sites things during park tours to be addressed and they ar'~~9t fixed year aft' c," ~ar. She also urged the Commission and staff to come to a conclttsiQnwith regard' dthe tennis courts. , -".,." ".< .., :'.,-<--.-:..,< Young interjected that large scale decisio11s,lik~"~~~!1' vaL of tennis courts were not going to be made until t ~y was compled. ed~at a professional survey group be is seeking bids by professionals at this as soon as hoped. y results, it is clear to all that Badger has the wood are in need of rehab. He indicated that they ite tOifuake some recommendations. Chair Davis sta a warming house hat th~i';;ommission liked the idea of rearranging Cathcart and adding '~'shelter, as well as, updating the lighting. Trent urged the Commission to be tactical in it's laying out a plan. Brown noted that Council member Wellens had put out a challenge to the Commission to see what should be done, on the other hand, there are other maintenance items as well as the Mayor's suggestion at the previous meeting to think long term when considering parks. Norman stated that with the survey in the planning phase, the Commission should focus its efforts on some of the minor improvements that need to be addressed. PARK COMMISSION MINUTES TUESDA Y, MAY 13,2008 PAGE60F6 Bailey suggested the Commission create a punch list of priority items with their assigned dollar amounts. Trent noted that a list has already been created and suggested this list be brought back to the next meeting with bid estimates for discussion. Hensley stated that a picnic shelter for Cathcart was a great idea but an overall plan for the park is necessary. He also wished to see a concept plan for B~3B~r Park and the City Hall renovation in order to see what else might be missing as the:areais being addressed. Young encouraged the Commission to narrow down the pwbritie ". they can take to the City Council for their support. Brown stated that the item could be a.d could speak with the surveyors, noting anyone what the soil requires. ate. He indicated that he knows better than Chair Davis pointed out that if the City chooses courts, it would make sense, based on econO$ phase of the City Hall renovation. She urged Bro ould e to see a vety specific plan regarding Badger courts e~~,~erseasonl."~ther than continuing on this same vein . dingJe~i~,::~9,urts. City is going to have grading done, they may as he asked staff, at minimum, to put together a site Hensley stated resources more e Brown stated that sta f would try to put together a plan and bring it back to the Commission with regard to the highest and best uses including Badger and Cathcart tennis courts, hockey rinks, and summer fields as soon as possible. PARK COMMISSION MINUTES TUESDAY , MAY 13, 2008 PAGE70F7 SIGNAGE Brown pointed out that the sign costs staffhad investigated were somewhat staggering. Despite the staggering costs, Trent maintained that a city must create an identity as a reflection of its community and believed other options were available as a way of giving the redwood signs a face lift. The Commission concurred and urged staff to further investigate~Pllle options. Brown stated that they would at least explore establishing al1.t' logo for the community. DeMars stated that he would check to see if therew~$lone:1"'ymoney for signage. Hensley suggested individuals find signs they like~dl1.avestaff revise these slightly to reflect our needs. 7. UNCIL MEElflNGON MAY 27TH 6. DETERMINE LIAISON FOR C Trent volunteered for liaison on May 2ih:';'i BOARD MEMBERS Lisa Whalen, Chair Minnetrista Tom Tanner, Vice Chair Wayzata Andrew McDermott III, Secretary Orono Tom Scanlon, Treasurer Spring Park Doug Babcock Tonka Bay David Gross Deephaven Chris Jewett Minnet6nka Steve Johnson Mound Dennis Klohs Minnetonka Beach Jeff Morris Excelsior Bill Olson Victoria Kelsey Page Greenwood Richard Siakel Shorewood Herb Suerth Woodland #9T ~., 50% Recycled Content 20% Post Consumer Waste LAKE MINNETONKA CONSERVATION DISTRICT 18338 MINNETONKA BLVD. . DEEPHAVEN, MINNESOTA 55391 . TELEPHONE 952/745-0789 . FAX 952/745-9085 Gregory S. Nybeck, EXECUTIVE DIRECTOR May 16, 2008 TO: LMCD City Administrators LMCD Board Members" ~-~. ,,,RI2C€/Vfo-j" lAY 792008 IT'v' FROM: Greg Nybeck, Executive Director SUBJECT: Draft 2009 LMCD Budget Enclosed is a copy of the draft 2009 Lake Minnetonka Conservation District (LMCD) Budget. A meeting has been scheduled in the LMCD office on Thursday, May 29th at 11 a.m. to review it and receive your input on it. The proposed levy to the member cities ($376,617) would increase 18.3% when compared to the levy for the 2008 LMCD Budget ($318,238). There are three line-items that primarily contribute to the proposed levy increase of $58,479. These include: 1) $20,000 has been budgeted in 2009 to address LMCD's General Reserve Fund balance, an increase of $15,000 from 2008. In the recently adopted 2007 LMCD Audit, the General Reserve Fund balance was $81,749 as of 12/31/07, or a 20 percent reserve level of the 2008 General Budget. The LMCD's auditor has recommended that the LMCD should maintain a minimum fund balance of 30 to 50 percent of planned expenditures. I've enclosed a copy of the 2007 LMCD Audit for your review. 2) A $7,500 decrease in court fine revenue has been budgeted in 2009, as well as a $2,500 increase in LMCD prosecution fees. This budgeting better reflects recent trends on these two line-items. 3) $30,000 has been budgeted in 2009 for a coordinated herbicide treatment project on Carmans, Grays, and Phelps Bays to address Eurasian Watermilfoil (Milfoil) and curlyleaf pondweed. This project, which is outlined in a Lake Vegetation Management Plan (L VMP) for Lake Minnetonka, calls for a five-year treatment project on these bays. This project was not included in the adopted 2008 LMCD Budget and was funded from LMCD "Save the Lake" Funds. It is anticipated that this project will compliment the LMCD's Milfoil Harvesting Program. Web Page Address: http://www.lmcd.org E-mail Address: Imcd@lmcd.org ttqA LMCD City Administrators LMCD Board Members May 16, 2008 Page 2 The LMCD values your review and input on the draft 2009 LMCD Budget. If you are unable to attend this meeting and would like to comment on the draft 2009 LMCD Budget, feel free to call me or forward your comments to the LMCD office by Friday, June 20, 2008. My e-mail address is: qnvbeck@lmcd.orq. I look forward to your comments. LAKE MINNETONKA CONSERVATION DISTRICT 2009 BUDGET AND LEVY (DRAFT) 2001 % of Total Share of Increase in %of City Population 2007 Taxable 2007 Net Tax Net Tax Admin. Levy Share of AIS Share of Total Share of Total Total Levy Increase Market Value Capacity Capacity Levy in 2009 Levy in 2009 Levy in 2008 Estimates (Note 1) in 2009 from 2008 from 2008 DEEP HAVEN 3.853 1.146.596.700 12,457.211 4.9% $18.956 $6.395 $25,351 $21 ,445 $3.906 18.2% EXCELSIOR 2.393 389.195.700 4.612.292 1.8% $7.019 $2.368 $9,386 $7.959 $1,427 17.9% GREENWOOD 729 337.601.500 3,421.704 1.4% $5.207 $1.756 $6,963 $5,634 $1.329 23.6% MINNETONKA 51.301 8.546,887,400 104.141.631 41.3% $56.323 $19,000 $75,323 $63.648 $11,675 18.3% MTKA BEACH 614 319.287.800 3.340,269 1.3% $5.083 $1.715 $6,798 $5,557 $1 .241 22.3% MINNETRISTA 4,358 1.556,718.200 15,462.321 6.1% $23.529 $7,937 $31,466 $26,428 $5.038 19.1% MOUND 9,435 1,443,282.100 14.067.219 5.6% $21 ,406 $7.221 $28,627 $24.548 $4.079 16.6% ORONO 7.538 3.060.029,400 32.519.344 12.9% $49,485 $16,693 $66,178 $55.308 $10.870 19.7% SHOREWOOD 7,400 1.640.851,700 17.619,943 7.0% $26,812 $9,045 $35,857 $31,042 $4,815 15.5% SPRING PARK 1.717 303,235,300 3.359,283 1.3% $5.112 $1.724 $6,836 $5.363 $1,473 27.5% TONKA BAY 1.547 611,587.000 6.179.079 2.5% $9,403 $3.172 $12,575 $10,339 $2.236 21.6% VICTORIA 4.025 1,045.625.000 11.153.184 4.4% $16.972 $5,725 $22,697 $19,135 $3.562 18.6% WAYZATA 4.113 1.616,887,700 20.397.329 8.1% $31,039 $10,471 $41,509 $35.869 $5,640 15.7% WOODLAND 480 310.766,000 3,463,559 1.4% $5.271 $1.778 $7,048 $5,963 $1,085 18.2% 99.503 22.328,551.500 252.194.368 100.0% $281,617 $95.000 $376,617 $318,238 $58,379 18.3% Maximum Levy Per MN statute 1038.635 (Total Taxable Market Value * .00242%): $540.351 (Note 1) Per MN statute 1038.631, no city may pay more than 20% of the total levy . The City of Minnetonka would pay a constant 20% of any amounts to be levied. Remaining cities factorfor determining levy amounts is computed as: (City Net Tax Capacity I (Total Net Tax Capacity - Minnetonka Net Tax Capacity) ) * 80% Total Net Tax Capacity 252,194,368 less Minnetonka Net Tax Capacity (104,141,631) Net Tax Capacity for remaining 13 cities 148,052,737 LAKE MINNETONKA CONSERVATION DISTRICT 2009 BUDGET DETAIL (Draft) 2006 2007 2007 2008 2008 Actual 2009 Footnote # Actual Budget Actual Budget Projected Budget See Appendix A !B1;~flJ,~I;~~~~~~~~~ 1. Administration a) LMCD Communities Levy 188,565 229,821 229,822 241,241 241,241 281,617 b) Reserve Fund Allocation 5,000 0 0 0 0 0 c) Court Fines 34,613 35,000 27,099 37,500 30,000 30,000 d) Licenses 114,813 115,000 113,348 115,000 115,000 115,000 e) Other Public Agencies 0 0 0 0 0 0 f) Interest, Public Funds 7,038 5,000 7,520 5,000 5,000 5,000 g) Prepaid Mgmt Plan Expenses 0 0 0 7,875 7,875 7,875 h) Other Income 544 2,500 1,901 2,500 2,500 2,000 SUB-TOTAL ADMINISTRATION 350,573 387,321 379,690 409,116 401,616 441,492 2. Aquatic Invasive Species (AIS) Management a) LMCD Communities Levy 83,999 71,000 70,998 77,000 77,000 95,000 b) Other Public Agencies 41,600 40,000 32,700 40,000 40,000 40,000 1 c) Reserve Fund Allocation 0 30,000 26,884 19,000 19,000 30,000 2 d) Interest 3,920 3,000 4,974 3,000 3,000 4,000 SUB-TOTAL (AIS) MANAGEMENT 129,519 144,000 135,556 139,000 139,000 169,000 TOTAL REVENUES 480,092 ~ 515,246 548,116 ~ ~ Total Levy 272,564 300,821 300,820 318,241 318,241 376,617 Reserve Fund Allocations 5,000 30,000 26,884 19,000 19,000 30,000 m~I~B:~Y;I0J;flJ't~;~l'm~~0~~;I:i.m GENERAL 1. Personnel Services: a) Salaries (includes Milfoil related Staff time) 146,545 153,970 162,975 182,627 183,102 190,089 3 b) Employer Benefit Contributions 30,854 33,278 33,712 37,261 36,403 39,720 4 SUB-TOTAL PERSONNEL SERVICES 177,399 187,248 196,687 219,888 219,505 229,809 2. Contractual Services: a) Office Lease & Storage 27,913 27,913 28,692 31,308 30,535 33,423 5 b) Professional Services 16,717 23,000 17,321 16,250 16,250 17,000 6 SUB-TOTAL CONTRACTUAL SERVICES 44,630 50,913 46,013 47,558 46,785 50,423 3. Office & Administration: a) Office, General Supplies 5,590 5,500 5,519 6,000 6,000 6,250 b) Telephone 3,497 3,360 3,500 3,720 3,720 3,960 7 c) Postage 3,949 5,000 4,085 5,000 5,000 5,000 d) Printing, Publications, Advertising 3,842 10,000 9,408 10,000 10,000 10,000 8 e) Maintenance, Office Equipment 2,373 1,000 0 1,000 1,000 1,000 f) Subscriptions, Memberships 1,565 1,750 1,646 1,750 1,750 1,750 g) Insurance, Bonds 4,059 10,000 5,488 7,500 7,500 7,500 9 h) Public Information, Legal Notices 1,168 2,000 802 2,000 2,000 2,000 i) Mileage, Meeting Expenses, Emp. Training 1,936 4,700 4,487 3,000 3,000 4,700 j) Winternet 113 0 0 0 0 0 k) WebPage/lnternet Maintenance/Service 900 750 115 2000 2000 2000 SUB-TOTAL OFFICE & ADMINISTRATION 28,992 44,060 35,050 41,970 41,970 44,160 2006 2,007 2,007 2,008 2008 Actual 2,009 Footnote # Actual Budget Actual Budget Projected Budget See Appendix A 4. Capital Outlay: a) Furniture & Equipment 319 2,000 1,255 2,000 2,000 2,000 b) Computer Software & Hardware 2,786 3,000 2,613 3,000 3,000 3,000 10 SUB-TOTAL CAPITAL OUTLAY 3,105 5,000 3,868 5,000 5,000 5,000 5. Legal: a) Legal Services 48,528 33,000 67,827 35,000 37,500 37,500 11 b) Prosecution Services 37,305 35,000 37,837 37,500 37,500 37,500 12 c) Henn. County Room & Board 213 1,000 139 1,000 1,000 500 SUB-TOTAL LEGAL 86,046 69,000 105,803 73,500 76,000 75,500 6. Contract Services/Studies: a) Boat Count & User Attitude Surveys 0 5,300 0 0 0 0 13 b) Audit 5,800 5,800 6,175 6,200 6,200 6,600 c) Access/Channel Signage 2,000 0 0 0 0 0 SUB-TOTAL CONTRACT SERVICES/STUDIES 7,800 11,100 6,175 6,200 6,200 6,600 7. General Reserve Fund 0 10,000 0 5,000 3,657 20,000 14 8. Contingency 17,152 10,000 5,055 10,000 10,000 10,000 TOTAL GENERAL 365,124 387,321 398,651 409,116 409,117 441,492 AQUATIC INVASIVE SPECIES (AIS) MANAGEMENT 1. Weed Harvesting Operational a) Salaries & Employer Taxesllnsurance 29,748 38,000 30,333 38,000 38,000 38,000 15 b) Trucking Contract 16,089 22,000 20,768 22,000 22,000 22,000 c) Administrative 2,247 3,000 1,961 3,000 3,000 3,000 d) Operational Supplies 23,865 20,000 25,662 20,000 20,000 20,000 e) Contract Services 28,650 31,000 29,071 31,000 31,000 31,000 SUB-TOTAL WEED HARVESTING OP. EXP. 100,599 114,000 107,795 114,000 114,000 114,000 2. Weed Harvesting Equip. Depreciation 0 10,000 0 0 0 0 SUB-TOTAL WEED HARVESTING 100,599 124,000 107,795 114,000 114,000 114,000 3. Weed Harvesting Reserve Fund 0 0 0 0 0 0 4. Herbicide Treatment Program 30,000 16 5. AIS Prevention Programs 20,800 20,000 17,761 25,000 25,000 25,000 17 TOTAL AIS MGMT 121,399 144,000 125,556 139,000 139,000 169,000 TOTAL DISBURSEMENTS 486,523 531,321 524,207 548,116 ~ ~ lake Minnetonka Conservation District (lMCD) Draft 2009 lMCD Budget Appendix A Other Public Agencies (Footnote #1) It is anticipated that the MN DNR will fund the LMCD with a grant of $40,000 for the 2009 EWM Harvesting Program. Invasive Species Reserve Fund Allocation (Footnote #2) A $30,000 reserve fund allocation has been budgeted for 2009. Further analysis of this reserve fund balance is detailed on page 3. Salaries (Footnote #3) Executive Director Administrative Technician Administrative Assistant/Code Enforcement Administrative Clerk (part-time) Seasonal Code Enforcement (part-time) 2009 Salary/Hourly Adjustments 2009 estimated actual $70,971.60 $51,498.00 $43,160.00 $13,520.00 $3,432.00 $7,507.17 $190,088.77 Employer Benefit Contributions (Footnote #4) P.E.R.A. (6.50%) NCPERS Life Ins. F.I.C.A.& Medicare Medical Ins. $12,132.69 $576.00 $14,581.57 $12,430.00 $39,720.26 Office Lease & Storage (Footnote #5) Monthly Rate Months $2,766.46 8 $2,822.92 4 $22,131.68 $11,291.68 $33,423.36 Professional Services (Footnote #6) Bookkeeping Cleaning Service $12,500.00 $4,500.00 $17,000.00 Telephone (Footnote #7) Qwest & Verizon (Includes Cellular, Internet, E-mail, & DSL) AT&T (Long Distance Coverage) $3,720.00 $240.00 $3,960.00 Printing, Publications, & Advertising (Footnote #8) $10,000 has been budgeted for two LMCD Newsletters, the re-printing of the Summer Rules pamphlet, and other LMCD literature. Insurance, Bonds (Footnote #9) $7,500 has been budgeted with the Leagure of Minnetota Cities for insurance for the LMCD. Page 1 Computer Software & Hardware (Footnote #10) Legal Services (Footnote #11) Prosecution Services (Footnote #12) Boat Count & User Attitude Surveys (Footnote #13) General Reserve Fund (Footnote #14) EWM Salaries & Employer Taxesl Insurance (Footnote #15) Salaries F.I.C.A. & Medicare (7.65%) Insurance (Auto & Workers Comp.) Herbicide Treatment Program (Footnote #16) AIS Prevention Programs(Footnote #17) $3,000 has been budgeted to replace one desktop computer and to upgrade software. $37,500 has been budgeted for legal services, which will be partially off-set by charging expenses back to applicants. $37,500 has been budgeted for prosecution services. These expenses will primarily be offset by projected $30,000 of court fines (see line item 1 c). Boat Density & User Attitude Surveys, which were postponed in 2008, have also been postponed in 2009. The projected balance of pre-paid expenses collected for this project is $7,875 as of 12/31/08. This balance will be used to reduce the overall levy increase to the LMCD member cities (see line item 19). $20,000 has been budgeted to bring the General Reserve Fund level closer to the planned level of 50% of annual expenses. One contributing factor to a reduction in this reserve level was unanticipated legal expenses in 2005-2008. Further analysis of this is on page 3. $31,625.00 $2,375.00 $4,000.00 $38,000.00 $30,000 ($10,000 per bay) has been budgeted for a coordinated herbicide treatment project on Carmans, Grays, and Phelps Bay. This is a five-year project and is outlined in a Lake Vegetation Management Plan (LVMP) for Lake Minnetonka. $25,000 has been budgeted for comprehensive inspection and educational programs to prevent the introduction of zebra mussels and other invasive species into Lake Minnetonka. Additional projects will be funded will be funded by grants and/or Save the Lake funds. Page 2 i~ESERVE'FOND'ANAUYsls 2008 12/31/07 Balance Designated Expense- Mgmt Plan Designated Expense- Z.M. Inspections Reserve Fund Contribution Reserve Fund Allocation Transfer to Equip. Rep!. Fund Projected 12/31/08 Balance General $81,749 ($7,875) $0 $5,000 $0 $0 $78,874 2009 Projected 12/31/08 Balance Designated Expense- Mgmt Plan Reserve Fund Contribution Reserve Fund Allocation Transfer to Equip. Rep!. Fund Projected 12/31/09 Balance $78,874 ($7,875) $20,000 $0 $0 $90,999 Projected % of 2008 Annual Budget Target % of 2008 Annual Budget 23.5% 50.0% Page 3 38.4% 50.0% AIS Equipment Replacement $104,225 $0 $0 $0 ($19,000) $0 $85,225 $75,451 $0 $0 $0 $0 $0 $75,451 $85,225 $0 $0 ($30,000) $0 $55,225 $75,451 $0 $0 $0 $0 $75,451 I I I I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2007 I LAKE MINNETONKA CONSERVATION DISTRICT DEEP HAVEN, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 2007 I I Page No. INTRODUCTORY SECTION I Board of Directors and Appointed Officials FINANCIAL SECTION I I Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of the Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities General, Eurasian Milfoil and Save the Lake Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Notes to Financial Statements 2 I - V I 3 4 I 5-6 7 8-9 10 I I 11-13 14 - 22 OTHER REPORTS I Report on Minnesota Legal Compliance Report on Internal Control Over Financial Reporting Based on an Audit of Financial Statement Schedule of Findings and Responses 23 24 25 - 26 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 INTRODUCTORY SECTION LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA YEAR ENDED DECEMBER 31, 2007 I I I Name I Tom Skramstad Tom Scanlon Doug Babcock I David Gross Chris Jewett Steve Johnson I Dennis Klohs Andrew McDermott III Jeff Morris I Kelsey Page Herb Suerth Tom Tanner Lisa Whalen I Vacant I I Gregory Nybeck I I I I I I I I I LAKE MINNETONKA CONSERV A nON DISTRlCT DEEPHAVEN, MINNESOTA BOARD OF DIRECTORS AND APPOINTED OFFICIALS DECEMBER 31, 2007 BOARD OF DIRECTORS Member City Shorewood Spring Park Tonka Bay Deephaven Minnetonka Mound Minnetonka Beach Orono Excelsior Greenwood Woodland Wayzata Minnestrista Victoria APPOINTED OFFICIALS -1- Position on Board Chair Treasurer/Secretary Officer Officer Officer Officer Officer Officer Officer Officer Officer Officer Officer Officer Title Executive Director I I I I I I I I I I I I I I I I I I I FINANCIAL SECTION LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA YEAR ENDED DECEMBER 31,2007 I I I I I I I I I I I I I I I I I I I Certified Puhlic Accountants & Consultants Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 INDEPENDENT AUDITOR'S REPORT Board of Directors Lake Minnetonka Conservation District Deephaven, Minnesota We have audited the accompanying financial statements of the governmental activities and each major fund of the Lake Minnetonka Conservation District (the District), Deephaven, Minnesota, as of and for the year ended December 31, 2007 as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the District at December 31, 2007, and the results of its operations and budgetary comparisons for the General, Eurasian Milfoil, and Save the Lake funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis, on pages I through V, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. February 27,2008 Minneapolis, Minnesota , ~U~~JLLf ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I Management's Discussion and Analysis As management of Lake Minnetonka Conservation District (the District), we offer readers of the District's financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended December 31,2007. Financial Highlights · The assets of the District exceeded its liabilities at the close of the most recent fiscal year by $768,384 (net assets). Of this amount, $512,011 (unrestricted net assets) may be used to meet the District's ongoing obligations to citizens and creditors. · The District's total net assets decreased by $80,966. · As of the close of the current fiscal year, the District's governmental funds reported combined ending fund balances of $528,973, a decrease of $49,043 in comparison with the prior year. · At the end of the current fiscal year, unreserved fund balance for the general fund was $81,749, or 21 percent of total general fund expenditures. Further discussion on this fund is detailed on page V under "General Fund Budgetary Highlights". · At the end of the current fiscal year, unreserved fund balance for the Eurasian MUfoil fund was $104,225, or 83 percent of total Eurasian MUfoil fund expenditures. · At the end ofthe current fiscal year, unreserved fund balance for the Save the Lake fund was $267,548. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the District's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cashjlows. Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal period (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements can be found on pages 3 - 4 of this report. -1- I I I I I I I I I I I I I I I I I I I Management's Discussion and Analysis - Continued February 27, 2008 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmentalfunds. Governmentalfunds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District's near- term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures and changes in fund balance (deficit) provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenue, expenditures and changes in fund balance (deficit) for the general fund and the four special revenue funds, all of which are considered to be major funds. The District adopts an annual appropriated budget for its General fund, Save the Lake, and Eurasian Milfoil special revenue funds. A budgetary comparison statement has been provided for the general fund, Save the Lake, and Eurasian Milfoil fund to demonstrate compliance with this budget. The fund financial statements can be found on pages 5 - 13 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 14 - 22 of this report. -II- I I I I I I I I I I I I I I I I I I I Management's Discussion and Analysis - Continued February 27,2008 Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the District, assets exceeded liabilities by $768,384 at the close of the most recent fiscal year. Summary of Net Assets December 31, Increase 2007 2006 (Decrease) Assets Current $ 596,917 $ 669,345 $ (72,428) Capital 256,373 284,469 (28,096) Total assets 853,290 953,814 (100,524) Liabilities Current 78,253 101,192 (22,939) Noncurrent 6,653 3,272 3,381 T otalliabilities 84,906 104,464 (19,558) Net assets Invested in capital assets 256,373 284,469 (28,096) Unrestricted 512,OII 564,881 (52,870) Total net assets $ 768,384 $ 849,350 $ (80,966) A portion of the District's net assets (33 percent) reflects its investments in capital assets (e.g., machinery and equipment). The District uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The remaining balance of unrestricted net assets ($512,011) may be used to meet the District's ongoing obligations to citizens and creditors. -II1- I I I I I I I I I I I I I I I I I I I Management's Discussion and Analysis - Continued February 27, 2008 Governmental Activities. Governmental activities decreased the District's assets by $80,966. Key elements of this decrease are as follows: Changes in Net Assets December 31, Increase 2007 2006 (Decrease) Revenues Program Charges for services $ 217,136 $ 240,412 $ (23,276) Operating grants and contributions 285,213 253,701 31,512 Capital grants and contribution General Umestricted investment earnings 27,367 22,217 5,150 Total revenues 529,716 516,330 13,386 Expenses General government 402,478 371,531 30,947 Save the Lake 47,242 38,093 9,149 Eurasian Milfoil 153,441 152,911 530 Equipment Replacement 7,521 7,521 Total expenses 610,682 562,535 48,147 Change in net assets (80,966) (46,205) (34,761) Net assets, January 1, 849,350 895,555 (46,205) Net assets, December 31, $ 768,384 $ 849,350 $ (80,966) Financial Analysis of the Government's Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmentalfunds. The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unreservedfund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District's governmental funds reported combined ending fund balances of $528,973 a decrease of $49,043 in comparison with the prior year. -IV- I I I I Management's Discussion and Analysis - Continued February 27,2008 2007 General Fund Budgetary Highlights · Overall revenue was under what was budgeted by $7,631. This represents a budget variance of 2 percent. The primary contributing factor to this was court fine revenue, which was $7,901 under what was budgeted. · Overall expenditures incurred were above what was budgeted by $21,330. This represents a budget variance of6 percent. The primary contributing factor, which was not budgeted for, was unanticipated legal expenses ($37,664). I 2007 Eurasian Milfoil Budgetary Highlights I I I I I I I I I I I I I I · Overall revenue received was under what was budgeted by $5,328. This represents a budget variance of 5 percent. The primary contributing factor was the MN DNR grant for the EWM Harvesting Program, which was $7,300 under what was budgeted. · Overall expenditures incurred were below what was budgeted by $8,655. The main contributing factor was that a $10,000 line-item was included in the adopted 2007 LMCD Budget to be transferred to the Equipment Replacement Fund, which is to be used to replace depreciated EWM Harvesting Equipment. 2007 Save the Lake Budgetary Highlights · Overall revenue received was less than what was budgeted by $15,605. This represents a budget variance of29 percent. The primary contributing factor was contributions and conations, which was $22,910 below what was budgeted. This was partially offset by interest on investments, which was $7,070 above what was budgeted. · Overall expenditures incurred were under what was budgeted by $6,914. This represents a budget variance of about 13 percent. The two main contributing factors included: 1) the $2,000 offunds for solar buoy lights were not incurred, and 2) expenses incurred for the Internet Landing Installed Device Sensors project was lower than what was budgeted by $2,989. Capital Assets The District's investment in capital assets for its governmental activities as of December 31, 2007 amounts to $256,374 (net of accumulated depreciation). Economic Factors and Next Year's Budgets Every four years, a Management Plan project is conducted to prepare and execute a study of Lake Minnetonka during the summer. This project was conducted in 2004 and the next project was planned for 2008. The LMCD Board, during its 2008 LMCD Budget process, decided to postpone this Management Plan project until at least 2009. The fund balance for this project was $15,750 as of December 31, 2007. Requests for Information This financial report is designed to provide a general overview ofthe District's finances for all those with an interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Gregory S. Nybeck, Lake Minnetonka Conservation District, 18338 Minnetonka Boulevard, Deephaven, Minnesota, 55391-3232. -v- I I I I I I I I I I I I I I I I I I I GOVERNMENT-WIDE FINANCIAL STATEMENTS LAKE MINNETONKA CONSERVATION DISTRICT DEEP HAVEN, MINNESOTA YEAR ENDED DECEMBER 31, 2007 -3- I I Governmental I Activities $ 590,262 I 830 3,469 2,356 I 256,373 853,290 I 1,738 I 10,936 55,270 I 10,309 6,653 I 84,906 I 256,373 I 512,011 $ 768,384 I I I I I I I I LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31,2007 ASSETS Cash and temporary investments Accounts receivable Due from other governments Prepaid items Capital assets (net of accumulated depreciation) Machinery and equipment TOTAL ASSETS LIABILITIES Salaries and wages payable Accounts and contracts payables Unearned revenue Noncurrent liabilities Due within in one year Compensated absences payable Due in more than one year Compensated absences payable TOTAL LIABILITIES NET ASSETS Investment in capital assets Unrestricted TOTAL NET ASSETS The notes to financial statements are integral part of this statement. I I I I I Functions/Programs Governmental activities Conservation of natural resources Save the Lake Eurasian Milfoil Equipment replacement I I Total I I I I I I I I I I I LAKE MINNETONKA CONSERVATION DISTRICT DEEPHA VEN, MINNESOTA STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2007 Program Revenues Charges Operating Capital for Grants and Grants and Expenses Services Contributions Contributions $ 402,478 $ 113,438 $ 258,732 $ 47,242 26,481 153,441 103,698 7,521 $ 610,682 $ 217,136 $ 285,213 $ General revenues Unrestricted investment earnings Change in net assets Net assets, January 1 Net assets, December 31 The notes to financial statements are integral part of this statement. -4- I Net (Expense) Revenues and Changes in Net Assets Primary Government Governmental Activities $ (30,308) (20,761) (49,743) (7,521) (l08,333) 27,367 (80,966) 849,350 $ 768,384 THIS PAGE IS LEFT BLANK INTENTIONALL Y 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 I I I I I I I FUND FINANCIAL STATEMENTS LAKE MINNETONKA CONSERV A nON DISTRICT DEEPHAVEN,MINNESOTA YEAR ENDED DECEMBER 31, 2007 I I I I Total $ 590,262 I 830 3,469 2,356 I $ 596,917 I $ 10,936 I 1,738 55,270 67,944 I I 11,953 15,750 I 104,225 75,451 255,595 I 65,999 528,973 I $ 596,917 I I I I I I -6- THIS PAGE IS LEFT BLANK INTENTIONALL Y I I I I I I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERV A nON DISTRICT DEEPHAVEN,MINNESOTA RECONCILlA nON OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS DECEMBER 31,2007 I Total fund balances - governmental funds $ 528,973 I Amounts reported for governmental activities in the statement of net assets are different because: I Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental fund. Cost of capital assets Less: accumulated depreciation 398,710 (142,337) I I I Noncurrent liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Noncurrent liabilities at year-end consist of: Compensated absences payable (16,962) Total net asset - governmental activities $ 768,384 I I I I I I I I I I The notes to [mancial statements are integral part of this statement. I -7- LAKE MINNETONKA CONSERV A nON DISTRICT I DEEPHAVEN,MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES I GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2007 Revenues I Provided Revenues by Donations Provided by Dues I Special Revenue Save Eurasian Equipment General the Lake Milfoil Replacement I REVENUES Intergovernmental Membership dues $ 229,822 $ $ 70,998 $ Public agencies 32,700 I License and permits 113,438 Fine and forfeitures 27,099 Contributions and donations 23,716 I Interest on investments 7,520 12,070 4,974 2,803 Miscellaneous 1,811 2,765 TOTAL REVENUES 379,690 38,551 108,672 2,803 I EXPENDITURES I Current Personal services 196,687 30,333 Operating supplies 19,012 3,059 13,087 I Public services 44,183 Repair and maintenance 14,276 Contract fees 27,600 Legal fees 105,664 I Truck service 20,768 Other services 19,302 Other charges 54,118 19,281 I Capital outlay 3,868 7,521 TOTAL EXPENDITURES 398,651 47,242 125,345 7,521 I EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (18,961) (8,691) (16,673) (4,718) I OTHER FINANCING SOURCES (USES) Transfer in 8,120 Transfer out (8,120) I TOTAL OTHER FINANCING SOURCES (USES) (8,120) 8,120 I NET CHANGE IN FUND BALANCE (18,961) (8,691 ) (24,793) 3,402 FUND BALANCES, JANUARY 1 100,710 276,239 129,018 72,049 I FUND BALANCES, DECEMBER 31 $ 81,749 $ 267,548 $ 104,225 $ 75,451 I The notes to financial statements are integral part of this statement. -8- I I I I I I Total I $ 300,820 32,700 113,438 I 27,099 23,716 27,367 4,576 I 529,716 I 227,020 I 35,158 44,183 14,276 I 27,600 105,664 20,768 I 19,302 73,399 11,389 I 578,759 I (49,043) I 8,120 (8,120) I I (49,043) 578,016 I $ 528,973 I -9- THIS PAGE IS LEFT BLANK INTENTIONALL Y I I I I I I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2007 I I Total net change in fund balances - governmental funds $ (49,043) Amounts reported for governmental activities in the statement of activities are different because: I Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital asset additions Depreciation expense 7,521 (31,933) I I Sales of capital assets are reported in the governmental funds as other financing sources. However, in the statement of activities, proceeds are eliminated and gains and losses are recorded Loss on disposal of capital assets (3,684) I I Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences payable (3,827) I Change in net assets - governmental activities $ (80,966) I I I I I I I I The notes to financial statements are integral part of this statement. -10- I I I I Eurasian Milfoil I Variance with Budgeted Amounts Final Budget Actual Positive I Original Final Amounts (Negative) I $ 71,000 $ 71,000 $ 70,998 $ (2) 40,000 40,000 32,700 (7,300) I 3,000 3,000 4,974 1,974 I 114,000 114,000 108,672 (5,328) I 34,000 34,000 30,333 3,667 I 13,000 13,000 13,087 (87) 14,000 14,000 14,276 (276) I 31,000 31,000 27,600 3,400 22,000 22,000 20,768 1,232 I 20,000 20,000 19,281 719 I 134,000 134,000 125,345 8,655 I (20,000) (20,000) (16,673) 3,327 I (8,120) (8,120) (20,000) (20,000) (24,793) (4,793) I 129,018 129,018 129,018 I $ 109,018 $ 109,018 $ 104,225 $ (4,793) I I -12- LAKE MINNETONKA CONSERVATION DISTRICT I DEEPHAVEN,MINNESOTA STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES- I BUDGET AND ACTUAL - CONTINUED GENERAL, EURASIAN MILFOIL AND SAVE THE LAKE FUNDS YEAR ENDED DECEMBER 31, 2007 I Save the Lake Variance with I Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) I REVENUES Intergovernmental Membership dues $ $ $ $ I Public agencies Licenses and permits Fines and forfeits Contributions and donations 46,626 46,626 23,716 (22,910) I Interest on investments 5,000 5,000 12,070 7,070 Miscellaneous 2,530 2,530 2,765 235 TOTAL REVENUES 54,156 54,156 38,551 (15,605) I EXPENDITURES I Current Personal services Operating supplies 4,500 4,500 3,059 1,441 I Public services 49,656 49,656 44,183 5,473 Repair and maintenance Contract fees Legal fees I Truck service Other services Other charges I Capital outlay TOTAL EXPENDITURES 54,156 54,156 47,242 6,914 I EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (8,691) (8,691) I OTHER FINANCING USES Transfer out I NET CHANGE IN FUND BALANCES (8,691 ) (8,691) FUND BALANCES, JANUARY 1 276,239 276,239 276,239 I FUND BALANCES, DECEMBER 31 $ 276,239 $ 276,239 $ 267,548 $ (8,691) I The notes to the financial statements are an integral part of this statement. I -13- I I I I Note 1: I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSER V A nON DISTRICT DEEPHAVEN,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Lake Minnetonka Conservation District (the District) was established under laws 1967, chapter 907 and laws 1969, chapter 272 of the Minnesota statutes and consists ofa 14 member Board of Directors (the Board) composed of representatives from each member city. The purpose ofthe District is to regulate and monitor the use of Lake Minnetonka. The Board exercises legislative authority and determines all matters of policy. The Board appoints personnel responsible for the proper administration of all affairs relating to the District's activities. The District has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that exclusion would cause the District's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability ofthe primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government. The District has no component units that meet the GASB criteria. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the non-fiduciary activities ofthe District. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available ifthey are collected within 60 days ofthe end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Fines, dues, licenses and interest become measurable and available when cash is received by the District and are recognized as revenue at that time. -14- LAKE MINNETONKA CONSER V A nON DISTRICT DEEPHAVEN,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The District reports the following major governmental funds: The General fund is the District's primary operating fund. It accounts for all financial resources of the District, except those required to be accounted for in another fund. The Save the Lake fund accounts for lake improvement projects on Lake Minnetonka. The fund is funded only through donations and interest income. The Eurasian Milfoil fund accounts for revenue sources that are used to fund expenditures for milfoil control and Zebra Mussel prevention on Lake Minnetonka. The fund is funded only through dues and interest Income. The Equipment Replacementfund accounts for expenditures for equipment replacement. The fund is funded only through dues and interest income. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of GASB. Governments also have the option offollowing subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The District has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the District receives value without directly giving equal value in return, include grants, entitlement and donations. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the District must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Deferred revenue in the fund financial statements and unearned revenue in the government-wide financial statements arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as deferred revenue. On the modified accrual basis, receivables that will not be collected within the available period have also been reported as deferred revenue. -15- I I I I I I I I I I I I I I I I I I I I I I Note 1: I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERV A nON DISTRICT DEEPHAVEN,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. D. Assets, Liabilities and Net Assets or Fund Equity Deposits and Investments The District's cash and temporary investments are considered to be cash on hand, demand deposits and short term investments with original maturities of three months or less from the date of acquisition. The District may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities in (1) above. 3. General obligations of the State of Minnesota or any of its municipalities. 4. Banker's acceptances of Unites States banks eligible for purchase by the Federal Reserve System. 5. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality, and maturing in 270 days or less. 6. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 7. Guaranteed investment contracts (GIC's) issued or guaranteed by United States commercial banks or domestic branches offoreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories, or in the top three rating categories for long-term GIC's issued by Minnesota banks. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each ofthe funds. Investments are stated at fair value. The District does not have an investment policy. -16- LAKE MINNETONKA CONSERV A nON DISTRICT DEEPHAVEN,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Capital Assets Capital assets, which include property, plant and equipment, are reported in the applicable governmental activities columns in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $2,500 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Useful Lives in Years Machinery and equipment 5 - 15 Compensated Absences It is the District's policy to permit employees to accumulate a limited amount of earned but unused vacation, which will be paid to the employee upon separation without the considerations of number of years of service. The District also has a policy that allows an employee to accumulate sick leave after three years of service at 25 percent up to 720 hours. This is payable upon termination. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Fund Equity Designations of fund balance represent tentative management plans that are subject to change. Net Assets Net assets represent the difference between assets and liabilities. Net assets are displayed in three components: a. Invested in capital assets - Consists of capital assets, net of accumulated depreciation. b. Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets". -17- I I I I I I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 I Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information I Annual budgets are prepared on a basis consistent with accounting principles generally accepted in the United States of America for the General, the Save the Lake, and the Eurasian Milfoil special revenue funds. All annual appropriations lapse at year end. The District does not use encumbrance accounting. I The Board must, on or before July 1 each year, prepare and submit a detailed budget of the District's needs for the next calendar year to the governing body of each city in the District with a statement of the proportion of the budget to be provided by each city. The governing body of each city in the District shall review the budget and the Board, upon notice from a city, must hear objections to the budget. After the hearing, the Board may modify or amend the budget. Notice must be given to the city of modifications or amendments. The legal level of budgetary control is the fund level. There were no budget amendments during the year. I I B. Excess of Expenditures over Appropriations For the year ended December 31,2007, expenditures exceeded appropriations in the General fund as follows: I I Fund Budget Actual Excess of Expenditures Over Appropriations General $ 377,321 $ 398,651 $ (21 ,330) I These over-expenditures were funded by available fund balance. I Note 3: DETAILED NOTES ON ACCOUNTS A. Deposits and Investments I Cash balances of the District's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and temporary investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: I Deposits I Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the District's deposits and investments may not be returned or the District will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the Council, the District maintains deposits at those depository banks, all of which are members of the Federal Reserve System. I Minnesota statutes require that all District deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). I I Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other State or local government obligations. Minnesota statutes require that securities pledged as collateral be held in safekeeping by the District or in a financial institution other than that furnishing the collateral. I I -18- LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 Note 3: DETAILED NOTES ON ACCOUNTS - CONTINUED At year end, the District's carrying amount of deposits was $385,714 and the bank balance was $386,014. On December 31, there was $5,457 in deposits that were not covered by federal deposit insurance coverage. The Minnesota Money Market Mutual Fund (4M) is a trust organized and existing under the laws of the State of Minnesota and the Minnesota Joint Powers Act, as amended. The trust was established for the purpose of allowing governments to pool their investment funds to obtain a competitive investment yield, while maintaining liquidity and preserving capital. The credit rating for the 4M is PI. The District's investment in the 4M and Broker money markets are equal to the value of pool shares. At year end, the District's investment balances were as follows: Fair Value and Carrying Amount Investments not subject to categorization Minnesota Municipal Money Market Fund $ 204,248 A reconciliation of cash and temporary investments as shown on the Statement of Net Assets for the District follows: Total Carrying amount of deposits Investments Cash on hand $ 385,714 204,248 300 Total $ 590,262 B. Due from Other Governments The amount due from other governments is due from the State of Minnesota. -19- I I I I I I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 I Note 3: DETAILED NOTES ON ACCOUNTS - CONTINUED C. Capital Assets I Capital asset activity for the year ended December 31, 2007 was as follows: I Beginning Balance Increases Ending Decreases Balance I I Governmental activities Capital assets, being depreciated Machinery and equipment $ 406,048 $ 7,521 $ (14,858) $ 398,710 I Less accumulated depreciation for Machinery and equipment (121,578) (31,933) 11,174 (142,337) Capital assets, net $ 284,469 $ (24,412) $ (3,684) $ 256,373 I Depreciation expense was charged to functions/programs of the District as follows: I Governmental Activities Eurasian Milfoil $ 31,933 I D. Deferred Revenue/Unearned Revenue I Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Also, governmental funds defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue unearned revenue reported were as follows: I I Fund Unearned General Licenses paid in advance $ 55,270 Note 3: DETAILED NOTES ON ACCOUNTS - CONTINUED I E. Leases I I On August 31, 2003, the District renewed its lease for office space for an additional five years, expiring August 31, 2008. Lease expense for 2007 was $28,692. Future obligations are as follows: Year Ending December 31, Amount 2008 $ 18,496 I I -20- LAKE MINNETONKA CONSERV A nON DISTRICT DEEPHAVEN,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2007 I I Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description I All full-time and certain part-time employees of the District are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) which is a cost-sharing, multiple-employer retirement plan. This plan is established and administered in accordance with Minnesota statutes, chapters 353 and 356. I PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. I PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by Minnesota statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. I I Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. A reduced retirement annuity is also available to eligible members seeking early retirement. I I There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon death of the retiree--no survivor annuity is payable. There are also various types ofjoint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. I I The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF. That report may be obtained on the Internet at mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. I I B. Funding Policy I Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the State legislature. The District makes annual contributions to the pension plans I equal to the amount required by Minnesota statutes. PERF Basis Plan members and Coordinated Plan members are required to contribute 9.10 percent and 5.75 percent, respectively, of their annual covered salary in 2007. Contribution rates in the Coordinated Plan will increase in 2008 to 6.0 percent. The District is required to I contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members and 6.25 percent for Coordinated Plan PERF members. Employer contribution rates for the Coordinated Plan will increase to 6.5 percent, effective January 1,2008. The District's contributions to the PERF for the years ended December 31, 2007, 2006 and 2005 were $9,792, $8,792, and $7,665, respectively. The District's contributions I were equal to the contractually required contributions for each year as set by Minnesota statute. I -21- I I I LAKE MINNETONKA CONSERVATION DISTRlCT DEEPHA VEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2007 I Note 5: OTHER INFORMATION Risk Management I The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the District carries insurance. The District obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The District pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self- sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the District's coverage in any of the past three fiscal years. I I I Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The District's management is not aware of any incurred but not reported claims. I I I I I I I I I I I I -22- THIS PAGE IS LEFT BLANK INTENTIONALL Y 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 I I I I I I I OTHER REPORTS LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA YEAR ENDED DECEMBER 31,2007 I I I Certified Public Accountants & Consultants Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 I I REPORT ON MINNESOTA LEGAL COMPLIANCE I Board of Directors Lake Minnetonka Conservation District Deephaven, Minnesota I We have audited the financial statements of the governmental activities and each major fund of the Lake Minnetonka Conservation District (the District), Deephaven, Minnesota as of and for the year ended December 31,2007, and have issued our report thereon dated February 27,2008. I We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the provisions of the Minnesota Legal Compliance A udit Guide for Local Government, promulgated by the Minnesota Office of the State Auditor pursuant to Minnesota statute, section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures, as we considered necessary in the circumstances. I I The Minnesota Legal Compliance Audit Guide for Local Government covers six main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements and miscellaneous provisions. Our study included all of the listed categories. I The results of our tests indicate that for the items tested, the District complied with the material terms and conditions of applicable legal provisions except fmding 2007-2 as noted in the Schedule of Findings and Responses. I This report is intended solely for the information and use of the Board of Directors, management and the Minnesota Office of the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. I February 27,2008 Minneapolis, Minnesota aJnLU~~JLLP ABDO, EICK & MEYERS, LLP Certified Public Accountants I I I I I -23- www.aemcpas.com I 952.835.9090 . Fax 952.835.3261 I I I I I I I I I I I I I I I I I I I Certified Puhlic Accountants & Consultants Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS Board of Directors Lake Minnetonka Conservation District Deephaven, Minnesota In planning and performing our audit ofthe financial statements of Lake Minnetonka Conservation District (the District), Deephaven, Minnesota, for the year ended December 31, 2007, in accordance with auditing standards generally accepted in the United States of America, we consider the District's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed in the Schedule of Findings and Responses, we identified certain deficiencies in internal control that we consider to be significant deficiencies and other deficiencies that we consider to be material weaknesses. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the District's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the District's financial statements that is more than inconsequential will not be prevented or detected by the District's internal control. We consider findings 2007-1 and 2007 -3 to be significant deficiencies in internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the District's internal control. We do not believe the findings discussed above constitute material weaknesses. This report is intended solely for the information and use of the Board of Directors, management and the Minnesota Office of the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. I ~ U ~~/LLP ABDO, EICK & MEYERS, LLP Certified Public Accountants February 27,2008 Minneapolis, Minnesota -24- 952.835.9090 . Fax 952.835.3261 www.aemcpas.com Findifil! 2007-1 2007-2 LAKE MINNETONKA CONSER V A nON DISTRICT DEEPHAVEN,M~ESOTA SCHEDULE OF FINDINGS AND RESPONSES DECEMBER 31, 2007 I I Description I Limited Segregation of Duties - Cash Receipts Condition: During our audit we reviewed procedures over cash receipts and found LMCD to have limited segregation of duties related to cash receipts. I Criteria: There are four general categories of duties: authorization, custody, record keeping and reconciliation. In an ideal system, different employees perform each of these four major functions. In other words, no one person has control of two or more of these responsibilities. I I Cause: The current process involves the administrative assistant opening the mail, receiving and endorsing checks, preparing a deposit slip, taking the deposit to the bank, and maintaining the receipts journal and accounts receivable records. I Effect: The existence of this limited segregation of duties increases the risk of fraud. Recommendation: While we recognize the number of staff is not large enough to eliminate this deficiency, we recommend that another individual, separate from the administrative assistant, open the mail and prepare the deposit slip. I Management Response: Management will review its current staffing and job descriptions and attempt to implement the recommended action. I Collateral Coverage I Condition: The District had $6,003 of deposits uncollateralized on December 31, 2007. Criteria: I In accordance with Minnesota statute, section 118A.03, the District is required to have pledged collateral equal to 110 percent of the deposit not covered with insurance. Cause: I The District did not accurately project future cash balance levels. Effect: At year end, the District was out of compliance with state statutes. Recommendation: We recommend that the District consider the month end cash balances when I reconciling the prior month. Management Response: The District is aware ofthe situation and plans to monitor the coverage to ensure I compliance is met. I I I I -25- I I I I Findinl?: 2007-3 I I I I I I I I I I I I I I I I LAKE MINNETONKA CONSERV A nON DISTRICT DEEPHA VEN, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES - CONTINUED DECEMBER 31, 2007 Description Preparation of Financial Statements Condition: We were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. It is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management. Essentially, the auditors can not be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Cause: From a practical standpoint, we both prepare the statements and determine the fairness ofthe presentation at the same time in connection with our audit. This is not unusual for us to do with organizations of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors. It is the responsibility of management and those charged with governances to make the decision whether to accept the degree of risk associated with this condition because of cost and other considerations. We have instructed management to review a draft of the auditor prepared financials in detail for accuracy; we have answered any questions that management might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosures in your statements. We are satisfied that the appropriate steps have been taken provide you with the completed [mancial statements. Recommendation: Under these circumstances, the most effective controls lie in management's knowledge of the LMCD's financial operations. Regarding the specific situations listed above, we would offer the following specific recommendation: 1) Utilize a disclosure checklist to ensure all required disclosures are present and agree to work papers, and 2) Agree your CTAS receipt and disbursement information to the amounts reported in the financial statements plus any applicable accruals. Management Response: For now, the LMCD's management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements. -26- LAKE MINNETONKA CONSERVATION DISTRICT DEEPHAVEN,MINNESOTA MANAGEMENT LETTER YEAR ENDED DECEMBER 31, 2007 Certified Puhlic Accountants & Consultants I I I I I I I I I I I I I I I I I I I Certified Public Accountants & Consultants February 27,2008 Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 Board of Directors Lake Minnetonka Conservation District Deephaven, Minnesota We have audited the financial statements ofthe governmental activities and each major fund of the Lake Minnetonka Conservation District (the District), Deephaven, Minnesota, for the year ended December 31, 2007 and have issued our report thereon dated February 27,2008. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the [mancial statements are free of material misstatement. As part of our audit, we considered the internal control of the District. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a deficiency in internal control that we consider to be a significant deficiency. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiency on the following page to be a significant deficiency in internal control: 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I Lake Minnetonka Conservation District February 27, 2008 Page 2 I ~ ~'~t ~~ ~(g~ I Limited Segregation of Duties - Cash Receipts I Condition: During our audit we reviewed procedures over cash receipts and found LMCD to have limited segregation of duties related to cash receipts. I Criteria: There are four general categories of duties: authorization, custody, record keeping and reconciliation. In an ideal system, different employees perform each of these four major functions. In other words, no one person has control of two or more of these responsibilities. I I Cause: The current process involves the administrative assistant opening the mail, receiving and endorsing checks, preparing a deposit slip, taking the deposit to the bank, and maintaining the receipts journal and accounts receivable records. Effect: The existence of this limited segregation of duties increases the risk of fraud. I Recommendation: While we recognize staff is not large enough to eliminate this deficiency, we recommend that another individual, separate from the administrative assistant, open the mail and prepare the deposit slip. It is important that the board is aware of this condition and monitor all fmancial information. I Management Response: Management will review its current staffing and job descriptions and attempt to implement the recommended action. I I I I I I I I I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I Lake Minnetonka Conservation District February 27, 2008 Page 3 Preparation of Financial Statements Condition: We were requested to draft the audited [mancial statements and related footnote disclosures as part of our regular audit services. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. It is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management. Essentially, the auditors can not be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Cause: From a practical standpoint, we both prepare the statements and determine the fairness of the presentation at the same time in connection with our audit. This is not unusual for us to do with organizations of your size. Effect: The effectiveness ofthe internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors. It is the responsibility of management and those charged with governances to make the decision whether to accept the degree of risk associated with this condition because of cost and other considerations. We have instructed management to review a draft of the auditor prepared financials in detail for accuracy; we have answered any questions that management might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosures in your statements. We are satisfied that the appropriate steps have been taken provide you with the completed financial statements. Recommendation: Under these circumstances, the most effective controls lie in management's knowledge of the LMCD's financial operations. Regarding the specific situations listed above, we would offer the following specific recommendation: 1) Utilize a disclosure checklist to ensure all required disclosures are present and agree to work papers, and 2) Agree your CT AS receipt and disbursement information to the amounts reported in the financial statements plus any applicable accruals. Management Response: For now, the LMCD's management accepts the degree of risk associated with this condition and thoroughly reviews a draft ofthe financial statements. A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. We believe that the deficiency described above does not constitute a material weakness. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I Lake Minnetonka Conservation District February 27, 2008 Page 4 As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of Minnesota statutes. However, the objective of our tests was not to provide an opinion on compliance with such provisions. We noted one instance of noncompliance with Minnesota statutes as noted below: Collateral Coverage Condition: The District had $6,003 of deposits uncollateralized on December 31, 2007. Criteria: In accordance with Minnesota statute, section 118A.03, the District is required to have pledged collateral equal to 110 percent of the deposit not covered with insurance. Cause: The District did not accurately project future cash balance levels. Effect: At year end, the District was out of compliance with state statutes. Recommendation: We recommend that the District consider the month end cash balances when reconciling the prior month. Management Response: The District is aware of the situation and plans to monitor the coverage to ensure compliance is met. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Qualitative Aspects of Accounting Practices Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the District are described in Note 1 to the [mancial statements. We noted no transactions entered into by the District during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because oftheir significance to [mancial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The entries proposed by our firm related to accounting entries necessary to adjust year end balances. Although it is acceptable to complete these entries, management will receive more accurate timely information if they are done internally. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I Lake Minnetonka Conservation District February 27,2008 Page 5 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. Weare pleased to report that no such disagreements arose during the course of our audit. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the District's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the District's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I Lake Minnetonka Conservation District February 27,2008 Page 6 Other Matters The following are items that came to our attention during the audit that we feel should be reviewed. Financial Position and Results of Operations General Fund The fund balance decreased $18,961 to $89,749 at December 31, 2007. The total fund balance represents 20 percent of the 2008 budget. We recommend a minimum fund balance for working capital be approximately 30 percent to 50 percent of planned expenditures. A table summarizing the General fund balance in relation to budget follows: Percent General General of Fund Fund Balance Budget Fund Balance to Year December 31 Year Budget Budget 2001 $ 125,684 2002 $ 305,543 41 % 2002 141,070 2003 317,295 45 2003 190,553 2004 345,953 55 2004 168,303 2005 339,294 50 2005 120,261 2006 353,063 34 2006 100,710 2007 377,321 27 2007 81,749 2008 409,116 20 Fund Balance as a Percent of Next Year's Budget $450,000 $400,000 $350,000 $409 116 $300,000 $377,321 $345,953 $353,063 $250,000 $305,543 $317,295 $339,294 $200,000 ~~-- . $150,000 ~ .--- . . 55% -50% ~. $100,000 . . .. 41% 45% 34% 27% $50,000 20% $- 2001 2002 2003 2004 2005 2006 2007 2008 I~General Fund Balance -Budget I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I Lake Minnetonka Conservation District February 27,2008 Page 7 I The purposes and benefits of a General fund balance are as follows: I Purposes and Benefits I . Expenditures are incurred somewhat evenly throughout the year. However revenues are not received evenly. An adequate fund balance will provide the cash flow required to finance the General fund expenditures. I . Expenditures not anticipated at the time the annual budget was adopted may need immediate Board action. These would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. The 2007 General fund operations are summarized as follows: I Variance with Final Final Budget - Budgeted Actual Positive Amounts Amounts (Negative) Revenues $ 387,321 $ 379,690 $ (7,631) Expenditures 377,321 398,651 (21,330) Net change in fund balances 10,000 (18,961) (28,961) Fund balances, January 1 100,710 100,710 Fund balances, December 31 $ 110,710 $ 81,749 $ (28,961) I I I I . The largest factor contributing to the overall decrease in fund balance was that legal fees were over budget by $37,691. I I I I I I I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I Lake Minnetonka Conservation District February 27,2008 Page 8 Eurasian Milfoil Fund I The fund balance decreased $24,793 to $104,225 at December 31, 2007. The total fund balance represents 75 percent of the 2008 budget. We recommend a minimum fund balance for working capital be approximately 30 percent to 50 percent of planned expenditures. I I I A table summarizing the Eurasian Milfoil fund balance in relation to budget follows: I I I Percent Eurasian Milfoil Eurasian Milfoil of Fund Fund Balance Budget Fund Balance to Year December 31 Year Budget Budget 2003 $ 91,166 2004 $ 121,000 75 % 2004 106,825 2005 145,300 74 2005 120,898 2006 126,000 96 2006 129,018 2007 134,000 96 2007 104,225 2008 139,000 75 Fund Balance as a Percent of Next Year's Budget $180,000 $145,300 $160,000 $140,000 96% $120,000 $139,000 $100,000 $126,000 $80,000 74% 75% 75% $60,000 .-----, $40,000 _._----~------- $20,000 .------ $- 2003 2004 2005 2006 2007 2008 I.....Eurasian Milfoil Fund Balance -Budget I I I I I I I I I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I Lake Minnetonka Conservation District February 27,2008 Page 9 I I The 2007 Eurasian Milfoil fund operations are summarized as follows: Variance with Final Final Budget - Budgeted Actual Positive Amounts Amounts (Negative) Revenues $ 114,000 $ 108,672 $ (5,328) Expenditures 134,000 125,345 8,655 Excess (deficiency) of revenues over (under) expenditures (20,000) (16,673) 3,327 Other financing uses Transfer out (8,120) (8,120) Net change in fund balances (20,000) (24,793) (4,793) Fund balances, January 1 129,018 129,018 Fund balances, December 31 $ 109,018 $ 104,225 $ (4,793) Save the Lake Fund The 2007 Save the Lake fund operations are summarized as follows: Variance with Final Final Budget - Budgeted Actual Positive Amounts Amounts (Negative) Revenues $ 54,156 $ 38,551 $ (15,605) Expenditures 54,156 47,242 6,914 Net change in fund balances (8,691) (8,691 ) Fund balances, January 1 276,239 276,239 Fund balances, December 31 $ 276,239 $ 267,548 $ (8,691) I I I I I I I I I I I I I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I Lake Minnetonka Conservation District February 27, 2008 Page 10 I Other Special Revenue Funds I The other special revenue fund accounts for revenue sources that are legally restricted to expenditures for specified purposes (not including major capital projects). This fund is the Equipment Replacement fund. The New Equipment Acquisition fund is funded only through donations and interest income. I The following table summarizes the change in the components of fund balances for each special revenue fund. I Fund Fund Balances December 31, 2007 2006 Increase (Decrease) I Save the Lake Designated for Water patrol project Purchases from donated funds Eurasian Milfoil Designated for Exotics management Equipment Replacement Designated for Equipment replacement Total $ 11,953 $ 11,953 $ 255,595 264,286 (8,691) 104,225 129,018 (24,793) 75,451 72,049 3,402 $ 447 ,224 $ 477 ,306 $ (30,082) I I I I Future Accounting Standard Changes I The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future District financial statements: New Auditing Standard Related to Communication with Those Charged with Governance (SAS 114) I I Statement on Auditing Standards (SAS) No. 114 supersedes SAS No. 61, Communication with Audit Committees, as amended. This SAS establishes standards and provides guidance to an auditor on matters to be communicated with those charged with governance. It is effective for periods beginning on or after December 15,2006. Therefore, the standard was in effective for the current audit report. I In the wake of well-publicized audit failures and emerging best practices in corporate governance, expectations have increased for auditors to communicate openly and candidly with those charged with governance regarding significant findings and issues related to the audit. I In particular, the SAS: I . Describes the principal purposes of communication with those charged with governance and stresses the importance of effective two-way communication. . Requires the auditor to determine the appropriate person(s) in the entity's governance structure with whom to communicate particular matters. That person may vary depending on the nature of the matter to be communicated. I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I Lake Minnetonka Conservation District February 27,2008 Page 11 I I . Recognizes the diversity in governance structures among entities (including the existence of audit committees or other subgroups charged with governance) and encourages the use of professional judgment in deciding with whom to communicate particular matters. I . Recognizes the unique considerations for communicating with those charged with governance when all ofthose charged with governance are involved in managing the entity, which may be the case with some small entities. . Adds requirements to communicate: I ~ An overview of the planned scope and timing of the audit. ~ Representations the auditor is requesting from management. I . Provides additional guidance on the communication process, including the forms and timing of communication. Significant findings from the audit should be in writing when, in the auditor's profession judgment, oral communication would not be adequate. Other communications may be oral or in writing, I . Requires the auditor to evaluate the adequacy of the two-way communication between the auditor and those charged with governance. I . Establishes a requirement to document required communications with those charged with governance. GASB Statement No. 43 - Financial Reportingfor Postemployment Benefit Plans Other than Pension Plans I This statement is effective one year prior to the effective date of Statement No. 45 for the employer or largest participating employer in the benefit plan for multiple-employer plans. According to Statement No. 43, "The objective of this Statement is to establish uniform standards of financial reporting by State and local governmental entities for other postemployment benefit plans (OPEB plans). The term other postemployment benefits (OPEB) refers to postemployment benefits other than pension benefits and includes (a) postemployment healthcare benefits and (b) other types of post employment benefits (for example, life insurance) if provided separately from a pension plan. The term plans, in this context, refers to trust or other funds through which assets are accumulated to finance OPEB, and benefits are paid as they come due. This Statement provides standards for measurement, recognition, and display of the assets, liabilities, and, where applicable, net assets and changes in net assets of such funds and for related disclosures. The requirements of this Statement apply whether an OPEB plan is reported as a trust or agency fund or a fiduciary component unit of a participating employer or plan sponsor, or the plan is separately reported by a public employee retirement system (PERS) or other entity that administers the plan." I I I I GASB Statement No. 45 - Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions I This statement is effective in three phases based on a government's total annual revenues in the first fiscal year ending after June 15, 1999: I . Governments that were phase 1 governments for the purpose of implementation of Statement No. 34 - those with annual revenues of $100 million or more - are required to implement this Statement in financial statements for periods beginning after December 15,2006. I . Governments that were phase 2 governments for the purpose of implementation of Statement No. 34 - those with total annual revenues of $10 million or more but less than $100 million - are required to implement this Statement in financial statements for periods beginning after December 15,2007. I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I Lake Minnetonka Conservation District February 27,2008 Page 12 I I . Governments that were phase 3 governments for the purpose of implementation of Statement No. 34 - those with total annual revenues of less than $10 million - are required to implement this Statement in financial statements for periods beginning after December 15,2008. I Statement No. 45 gives the following summary, "In addition to pensions, many state and local governmental employers provide other postemployment benefits (OPEB) as part of the total compensation offered to attract and retain the services of qualified employees. OPEB includes postemployment healthcare, as well as other forms of post employment benefits (for example, life insurance) when provided separately from a pension plan. This Statement establishes standards for the measurement, recognition, and display ofOPEB expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers." I GASB Statement No. 47 - Accountingfor Termination Benefits I In general, Statement No. 47 is effective for financial statements for periods beginning after June 15,2005. However, for termination benefits that affect defined benefit postemployment benefits other than pensions, governments should implement Statement 47 simultaneously with Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The Statement provides accounting and reporting guidance for state and local governments that offer benefits such as early retirement incentives or severance to employees that are involuntarily terminated. The Statement requires that similar forms of termination benefits be accounted for in the same manner and is intended to enhance both the consistency of reporting for termination benefits and the comparability of financial statements. I I I GASB Statement No. 48 - Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues I This statement was issued September 2006 and is effective for periods beginning after December 15,2006. Therefore, this statement has been implemented for the current [mancial statements. I This standard provides accounting guidance for when certain transactions-such as the sale of delinquent taxes, certain mortgages, student loans, or future revenues such as those arising from tobacco settlement agreements-should be regarded as a sale or a collateralized borrowing. The financial reporting question addressed in Statement No. 48 is whether such transactions should be reported as a sale or collateralized borrowing. I In addition to clarifying guidance on accounting for sales and pledges of receivables and future revenues, Statement No. 48 (1) requires enhanced disclosures pertaining to future revenues that have been pledged or sold; (2) provides guidance on the sales of receivables and future revenues within the same financial reporting entity; and (3) provides guidance on recognizing other assets and liabilities arising from the sale of specific receivables or future revenues. I I I I I I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I Lake Minnetonka Conservation District February 27,2008 Page 13 I GASB Statement No. 49 - Accounting and Financial Reportingfor Pol/ution Remediation Obligations I This statement was issued November 2007 and is effective for periods beginning after December 15,2007, but liabilities should be measured at the beginning of that period so that beginning net assets can be restated. I This standard is intended to ensure that certain cost and long-term obligations related to pollution clean up not specifically addressed by current governmental accounting standards will be included in financial reports. The standards set forth the key circumstances under which a government would be required to report a liability related to pollution remediation. A government would have to determine whether one or more components of a pollution remediation liability are recognizable if any of the following five obligating events or triggers occurs: I I . A government is compelled to take remediation action because pollution creates an imminent endangerment to the public health or welfare or environment, leaving it little or no discretion to avoid remediation action. . A government is in violation of a pollution prevention-related permit or license. I . The government is named, or evidence indicates it will be named, by a regulator that has identified the government as a responsible party or potentially responsible party for remediation, or as a government responsible for sharing costs. I . A government is named, or evidence indicates that it will be named, in a lawsuit to compel the government to participate in remediation. I . A government commences or legally obligates itself to commence clean up activities or monitoring or operation and maintenance ofthe remediation effort. I If any of the above bullets are met, the pollution remediation liabilities should be measured at their current value using the expected cash flow technique, which measures the liability as a sum of probability-weighted amounts in a range of possible estimated amounts. Expected recoveries from other responsible parties and from insurers reduce the amount of remediation expense. Statement No. 49 also specifies criteria for capitalization of some pollution remediation outlays. I GASB Statement No. 50 - Pension Disclosures I This statement was issued May 2007 and is effective for periods beginning after June 15,2007, except for requirements related to the use of the entry age actuarial cost method for the purpose of reporting a surrogate funded status and funding progress of plans that use the aggregate actuarial cost method, which are effective for periods for which the financial statements and RSI contain information resulting from actuarial valuations as of June 15, 2007 or later. I I This statement more closely aligns the financial reporting requirements for pensions with those for OPEB and, in doing so, enhances information disclosed in notes to financial statements or presented as required supplementary information (RSI) by pension plans and by employers that provide pension benefits. The reporting changes required by this statement amend applicable note disclosure and RSI requirements of Statement No. 25 , Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 27 , Accounting for Pensions by State and Local Governmental Employers, to conform with requirements of Statement No. 43 , Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and 45 , Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This statement requires defmed benefit pension plans and sole and agent employers present the following information related to note disclosures: I I I . Notes to fmancial statements should disclose the funded status of the plan as of the most recent actuarial valuation date. Defined benefit pension plans also should disclose actuarial methods and significant assumptions used in the most recent actuarial valuation in notes to financial statements instead of in notes to RSI. I 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I Lake Minnetonka Conservation District February 27,2008 Page 14 . If the aggregate actuarial cost method is used to determine the annual required contribution of the employer (ARC), notes to financial statements should disclose the funded status of the plan, and a schedule of funding progress should be presented as RSI, using the entry age actuarial cost method. Plans and employers also should disclose that the purpose of doing so is to provide information that serves as a surrogate for the funded status and funding progress of the plan. . Notes to financial statements should include a reference linking the funded status disclosure in the notes to financial statements to the required schedule of funding progress in RSI. . If applicable, notes to financial statements should disclose legal or contractual maximum contribution rates. In addition, if relevant, they should disclose that the maximum contribution rates have not been explicitly taken into consideration in the projection of pension benefits for financial accounting measurement purposes. . If an actuarial assumption is different for successive years, notes to fmancial statements should disclose the initial and ultimate rates. GASB Statement No. 51 - Accounting and Financial Reportingfor Intangible Assets This statement was issued in June 2007 and is effective for periods beginning after June 15,2009. The new standard characterizes an intangible asset as an asset that lacks physical substance, is nonfinancial in nature, and has an initial useful life extending beyond a single reporting period. Examples of intangible assets include easements, computer software, water rights, timber rights, patents, and trademarks. This statement requires that intangible assets be classified as capital assets (except for those explicitly excluded from the scope of the new standard, such as capital leases). Relevant authoritative guidance for capital assets should be applied to these intangible assets. The statement provides additional guidance that specifically addresses the unique nature of intangible assets, including: . Requiring that an intangible asset be recognized in the statement of net assets only if it is considered identifiable . Establishing a specified-conditions approach to recognizing intangible assets that are internally generated (for example, patents and copyrights) . Providing guidance on recognizing internally generated computer software . Establishing specific guidance for the amortization of intangible assets. Budget preparation In our prior management letter we mentioned that the annual budget is prepared in a spreadsheet independent ofthe finance system. This comment was addressed and the current budget has been entered into the fmance system. The District will work to prepare the 2009 budget in the software. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com I I I I I I I I I I I I I I I I I I I ~ 1'/' fliJ Lake Minnetonka Conservation District February 27,2008 Page 15 Compensated absences The balance of unused sick pay is recorded in Peachtree payroll. There are no limits built into the software. As a result, two employees exceeded the personnel policy limits in the software at year end. The amount recorded in the financial statements was adjusted down to the policy limits but we recommend that LMCD set limits within the software. There is a minor risk that an incorrect amount could be paid out but any system an organization maintains should be consistent with the policies established. The board should annually review its policies to ensure that content is still correct and relevant and also to ensure that systems adequately support those policies. * * * * * * This report is intended solely for the information and use of Board of Directors, management and the Minnesota Office of the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests ofthe accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff. February 27,2008 Minneapolis, Minnesota CUJo W ~~/LLf ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.835.9090 . Fax 952.835.3261 www.aemcpas.com CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 . (952) 474-3236 FAX (952) 474-0128 . )Nww.ci.shorewood.mn.us . cityhall@cLshorewood.mn.l.JS MEMORANDUM TO: Mayor and City Council Larry Brown, Acting City Administrator P.E., Director of Public Works FROM: J ames Landini, City Engineer 9- J- DATE: May 21,2008 RE: ~ Resolution Accepting Low Bid and Awarding Sealcoat Contract to the Successful Low Bidder Exhibit A is the Bid Tabulation for the 2008 Seal Coating of Streets Project which were opened and tabulated on May 21,2008. In 2008 we are proposing to seal coat the following streets: Smithtown Road, Shorewood Oaks Drive, Oak Leaf Trail, Maple Leaf Circle, Burlwood Court, Park Lane, Eureka Road, Mann Lane, Seamens Drive, Christopher Road, Club Lane, Star Lane, Star Circle, Fairway Drive, Nelsine Drive, Wild Rose,Lane, Sylv~n Lane, Meadowview Road, Sunnyvale Lane, Valleywood Lane, Valleywood Circle, Maple View Court, Orchard Circle, Lee Circle, Birch Bluff Road, Boulder Bridge Drive, Boulder Bridge Lane, and Boulder Circle. The low bidder is Allied Blacktop Co. in the amount of $224,860.15 for all three Cities. Shorewood's portion of the bid is $126,230.25. Based on the other bid received, it appears that the costs for this project are reasonable. This proj ect will be funded by the Streets & Roadways Operating Budget which has $300,000 budgeted for street m~intenance in 2008. Recommendation Staff recommends the contract for the 2008 Pavement Markings be awarded to Allied Blacktop Co. in the amou,nt of $126,230.25. A resolution is attached for your consideration. ,. f: . PRINTED ON RECYCLED PAPER ... #10 Ii CITY OF SHOREWOOD RESOLUTION NO. 08- A RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR THE 2008 BITUMINOUS SEAL COATING OF STREETS, CITY PROJECT NO. 08-02 WHEREAS, pursuant to an advertisement for bids for local improvements designated as the 2008 Bituminous Seal Coating of Streets, City Project No. 08-02, bids were received, opened on May 21, 2008 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 Allied Blacktop Co. 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 contract Allied Blacktop Co. in the name of the City of Shorewood, Project No. 08-02, 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 two lowest bidders, which shall be retained until a contract has been signed. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 27th day of May, 2008. Christine Lizee, Mayor ATTEST: Lawrence A. Brown, Acting City Administrator/Clerk City of Shorewood, Excelsior, Tonka Bay Bid Tabulation 2008 Bituminous Seal Coating of Streets Shorewood City Project No. 08 - 02 Bids Opened: 10:00 A.M. 21-May-08 . . ' '.' . . . .... .... Bid Bond I . . .. - .. < .' Check (6%) Addendum Engineer: City of Shorewood ..,.....'..... ~IU.,..:..':. 1 Allied Blacktop Co. 2 Asphalt Surface Tech. Corp. x $ 224,860.15 3 Pearson Bros., Inc. x $ 227,623.82 4 Scott Construction. Inc. 5 6 7 8 9 10 11 12 13 14 15 I hereby certify that this tabulation is a correct and true representation of the bids received on this date for this Improvement Project ~~ ~mes Landini, City Engineer .5"- :A I - 0 ~ Date (Jt~/f1. fa'YLV~/..7/}"- Jlian Panchyshyn Deputy Clerk/Executive Secretary 5-;2;-0 f' Date Exhibit A CITY OF SHOREWOOD' 5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927. (952) 474-3236 FAX (95'2) 474-0128 . www.cLshorewood.mn.us . cityhall@cLshorewood.mn.us MEMORANDUM TO: Mayor and City Council Larry Brown, Acting City Administrator P.E., Director of Public Works FROM: James Landini, P.E., City Engineer 9-:L DATE: May 22, 2008 RE: A Resolution Accepting Low Bid and Awarding Contract to Successful Low Bidder Exhibit Ais the Bid Tabulation for the Rehabilitation of Lift Station No. 16 Project. Bids were opened and tabulated on May 21,2008. The low bidder is CCS Contracting, Inc. in the amount of $88,416.00, compared to the engineer's estimate of $86,340.00. Based on other bids received, it appears that the costs for this project, although 3% above the engineer's estimate, are reasonable. This project will be funded from the Sanitary Sewer Fund which has $104,000 budgeted in 2008 for this project. Recommendation Staff is recommending that the City Council approve the attached resolution that accepts the bids and awards the contract to CCS Contracting, Inc. in the amount of $88,416.00. A resolution is attached for your consideration. #. ~ . PRINTED ON RECYCLED PAPER .... :ff loB CITY OF SHOREWOOD RESOLUTION NO. 08-_ A RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR THE REHABILITATION OF LIFT STATION NO. 16, CITY PROJECT NO. 06-01 WHEREAS, pursuant to an advertisement for bids for local improvements designated as the Rehabilitation of Lift Station No. 16, City Project No. 06-01, bids were received, opened on May 21, 2008 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 CCS Contracting, 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 contract CCS Contracting, Inc. in the name of the City of Shorewood, Project No. 06-01, 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 two lowest bidders, which shall be retained until a contract has been signed. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 27th day of May, 2008. Christine Lizee, Mayor ATTEST: Lawrence A. Brown, Acting City Administrator/Clerk City of Shorewood Bid Tabulation Rehabilitation of LS #16 2008 Shorewood City Project No. 06 - 01 Bid Date: 10:00a.m. Weds May 21 st, 2008 Engineer: City of Shorewood 1 Northern Water Works Supply, Inc. 2 Minnesota Pipe & Equipment 3 HD Su I Waterworks 4 Reed Construction Data 5 Penn Contractin , Inc. 6 7 CCS Contracting X $ 88,416.00 8 Electric Pump 9 Parrott Contracting, Inc. X $ 119,940.00 10 Geilsinger and Sons, Inc. X $ 146,000.00 11 12 13 14 15 En ineers Estimate $ 86,340.00 I hereby certify that this tabulation is a correct and true representation of the bids received on this date for this Improvement Project ~~ James Landini City Engineer 5-).. /- 0"'6 Date (}JUl/V'- fOM-dup$Ai,~. Je/n Panchyshyn {/ v Deputy Clerk/Executive Secretary 5--:;11 -05 Date Exhibit A CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING May 27, 2008 PUBLIC SIGN-IN SHEET For the record, please print your name and address below. Thank you. Name Address 1. ~ ~~" ~~Cj ~t tJE E ~~ ~ ~ ~ ~,~ ~ ~'~ E~'f r .. r° E ~ ~ ~ _ t a CSC L'` ~~ ~ ~ ~ -- ~° 3. 4. ~ .,~ E -- -~ °~ ~ ~° ,~;~ ~~ E~~ ~E ~<~ < - ~-~ ~.~--rte ; E°s ~2 . 5. ~ ~ E~ .~ ~~ E-E r~ a r g. QI~~~ f~~~~ 9. 10. CITY ®F SHOREWOOD 5755 COUNTRY CLUB ROAD •SHOREWOOD, MINNESOTA 55331-8927 • (952) 474-3236 FAX (952) 474-0128 • www.ci.shorewood.mn.us • cityhall@ci.shorewood.mn.us MEMORANDUM TO: Mayor and City Council FROM: Brad Nielsen DATE: 27 May 2008 RE: Appeal Notice to Remove -Ron Born (Follow-up) FILE NO. Property (4865 Ferncroft Drive) I inspected the above-referenced property today and was pleasantly surprised to find that the cleanup of the site was nearly completed. The only item remaining is a pickup truck cab located on the patio beneath the owner's deck. Mr. Born indicated that they are attempting to sell it and will have it gone by the date of the proposed deadline extension (27 June 2008). As such, the recommendation from my 22 May memo stands. Cc: Larry Brown Joe Pazandak Patti Helgesen Ron Born is air PRINTED ON RECYCLED PAPER To SLMPD Member City Councils Greetings, As you are aware from our joint meeting, much of the Shorewood Council was concerned about the Coordinating Committee's plan to expand the SLMPD. We believe it would be helpful to understanding if we provided you with an outline of our issues and an alternative path for moving forward. ISSUES: 1) Prior City Councils and Chiefs did not have a problem with a single officer on duty. Undoubtedly many departments across the nation continue this practice without difficulty. The claims that this is a problem and there are shortages and gaps; is an opinion and is not shared by all professionals. We have not been provided with evidence showing that SLMPD officers are regularly in danger because of coverage. Nor is there evidence that adding 2 (or 10) officers will some how ensure officer safety. 2) The IACP funding formula might be helpful if there was aone-size-fits-all formula. But we are told there is no such formula. If true, how can one maintain that we are understaffed? We should acknowledge that the IACP exists for the benefit of its chiefs, not our constituents. The IACP does not pay for what they recommend. 3) Chief Litsey chose to use the Centennial Lakes police department for comparison with the SLMPD. It protects Circle Pines, Lexington and Centerville. If you check a map, these cities are NOT contiguous! With 3-4 lakes between them, they are roughly 6 miles apart! Clearly this significant geographical separation. could justify having two officers on duty. While the Chief says this is an apples-to-apples comparison, we do not agree. 4) "Staff' created the Strategic Goals, not the mayors, councils or citizens. Staff does not represent our residents, generally don't live here and won't pay for their recommendations. 5) The Chief suggests the additional officers would allow for the creation of a canine officer and allow more details [out of the department?]. But we have not been presented evidence or argument as to how these activities will benefit our constituents. These desires hardly constitute a crisis. 6) The Chief argues that Mutual Aid agreements should not be abused by regular use. We agree. We have not been presented any evidence that the SLMPD is abusing these agreements. 7) The SLMPD has operated for decades while little has changed in our communities. Somehow, however, we are now understaffed, have "gaps" in the schedule, have shortages, we are jeopardizing officer safety, we have a "critical staffing need" that is "critically important." There is little to support these assertions. 8) Shorewood considers the savings from our refinancing, as money belonging to the cities and completely separate from the budgets of the departments. It should not be used to "buy down" operating cost increases. We agree on the need of each department to start a fund for building maintenance and we are willing to begin funding it. But it will be separate from the refinancing. The Shorewood Council finds this planning process problematic. If this was the result of a "broad-based representation from the member cities" it would not have met much objection. Something appears to be broken. Shorewood proposes changing our budget process for both the SLMPD and the EFD. Instead of the Chiefs guessing at what the cities might pass, we propose that each city council decide on a percentage increase (or decrease) it can afford. City representatives would meet and negotiate a compromise. We then present this target to the Chiefs. The Chief s identify any difficulties that will arise and the cities make adjustments as warranted. This process puts the Councils back in charge of spending. Sincerely, Shorewood City Council. ~uu< ~~~ ~~~e~ s~~o ~-irst ~~i~ year seta #iiti~~ ® ~I ~ilti~ 7000 .....~.~ ~ U...~~. _~, ~....... ..~_.. _v~ .~ _.... _.~:.. ~ - a ___ ~--_ - - - 6t}~ti 5000 4000 ~ ~ ~°~ ~°Criminal1 ` ! Other 1 3000 - ~ ~ Total _~ ?000 -°-- - i 1 aao -- - f X003 ~Oa~ ~aa~ ~Oa~ i 20~~ Statdstica~ C~rnparis~n t~ Other Oitees Clear Rate Part 1+2 Officers Officers Part 1 +2 per 1000 per 1000 per Pap Pop Part1 +Z SLMPD 58% 62 1.16 53 Mound 49% 71 1.38 51 Orono 32% 55 1.48 37 Henn Cty 40% 116 Not Avail SLMPD has highest clearance rate with lowest officer/1000 pop. SLMPD and Mound have equalivent Officers per Part1+2 Orono has more Officers per Part1+2 , but lowest clear rate