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06-09-14 Council Packet
EXPANDED AGENDA CITY COUNCIL AGENDA Monday, June 9, 2014 6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council: Mayor Reinert, Council Members Kusterman, Rafferty, Roeser and Stoesz City Administrator: Jeff Karlson CITY COUNCIL MEETING, 6:30 P.M. ➢ Call to Order — 6:30 p.m. ➢ Roll Call - Council Members Roeser, Rafferty, and Mayor Reinert were present; Council Members Stoesz and Kusterman were absent ➢ Pledge of Allegiance • Open Mike / Public Comment none ➢ Setting the Agenda: Addition or deletion of agenda items The agenda was amended to remove all of Item 6A, at staff's request 1. CONSENT AGENDA A) Consideration of Expenditures: i) June 9, 2014 (Check No. 98110 through 98174) in the amount of $132,644.11; ii) Centennial Fire District (Check No. 6426 through 6439) in the amount of $9,068.48); B) Consider approval of May 27, 2014 Work Session Minutes C) Consider approval of May 27, 2014 Council Meeting Minutes D) Resolution No. 14-46, Authorizing issuance of a Special Event Permit for the SMW Federal Credit Union. E) Consider Resolution 14-55, Approving the Renewal of Tobacco Licenses F) Consider approval of May 19, 2014 Advisory Bd Joint Meeting Minutes Council Member Kusterman absent G) Consider Resolution 14-56, Approving the Renewal of Liquor, Wine, Beer and Dance Licenses Action Taken: Motion by Roeser, seconded by Rafferty, to approve the Consent Agenda, Items 1 A through 1G, as presented, was adopted 2. FINANCE DEPARTMENT REPORT A) Consider Accepting 2013 Audit Report, CliftonLarsonAllen LLP, Al Rolek Action Taken: Motion by Roeser, seconded by Rafferty, to approve the Audit Report as presented, was adopted Council Agenda -2- June 9, 2014 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Approval of Services Agreement between City of Lino Lakes and Milo Bennett, John Swenson Action Taken: Motion by Rafferty, seconded by Roeser, to approve the agreement as presented, was adopted B) Consider Lease Agreement with New Creations Child Care, Michael Grochala Action Taken: Motion by Roeser, seconded by Rafferty, to approve the agreement as presented, was adopted C) Consider Hiring Kyung Kye for the Recycling Program Intern Position, Mike Grochala Action Taken: Motion by Rafferty, seconded by Roeser, to approve hiring as recommended, was adopted 4. PUBLIC SAFETY DEPARTMENT REPORT No report 5. PUBLIC SERVICES DEPARTMENT REPORT A) Consider Resolution No. 14-51, Authorizing Preparation of Plans and Specs for Well Construction of Well #6, Rick DeGardner Action Taken: Motion by Roeser, seconded by Rafferty, to approve Resolution No. 14-51 as presented, was adopted B) Consider Resolution No. 14-52, Authorizing Preparation of Plans and Specs for Well #6 Pumping Facility, Rick DeGardner Action Taken: Motion by Roeser, seconded by Rafferty, to approve Resolution No. 14-52 as presented, was adopted C) Consider Resolution No. 14-53, Approving Centennial School District Lease for Radio Communications System at Water Tower #1, Rick DeGardner Action Taken: Motion by Rafferty, seconded by Roeser, to approve Resolution No. 14-53 as presented, was adopted 6. COMMUNITY DEVELOPMENT REPORT A) Century Farm North Residential Development, Katie Larsen Consider First Reading of Ordinance No. 06 14 to Rezone Property located at 7880 Sunset Avenue from R, Rural to PUD Planned Unit Development Consider Resolution No. 14 43 Approving Amendment to PUD Development Stage Plan/Preliminary Plat i Consider Resolution No. 14 49 Approving Petition and Waiver Council Agenda -3- June 9, 2014 iv. Consider Resolution No. 14 57 Authorizing the Preparation of Plans and Specifications for the Robinson Drive Improvements Removed from agenda B) Consider Resolution No. 14-54, Authorizing Professional Services to Prepare Amendment to Wellhead Protection Plan, Michael Grochala Action Taken: Motion by Roeser, seconded by Rafferty, to approve Resolution No. 14-54 as presented, was adopted 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Action Taken: Motion by Rafferty, seconded by Roeser, to adjourn at 7:15 p.m., was adopted Wednesday, June 11 4- Monday, June 23 4- Monday, June 23 Community Calendar — A Look Ahead June 9, 2014 through June 23, 2014 6:30 pm, Council Chambers 5:30 pm, Community Room 6:30 pm, Council Chambers Planning & Zoning Council Work Session City Council Meeting Expenditures June 9, 2014 Check #98110 to #98174 132,644.11 Date: 05/29/2014 Time: 15:31:28 Ranges: Vendor #: (A) Invoice #: (A) Entry Journal #: (r) 11918 - 11922 Trans #: (A) Line 4: (A) Due Date: (A) Bank #: (A) City of Lino Lakes Operator: TJT Page: FM Entry - Invoice Journal Options: Detail / Summary: S Invoice Status: A 4 of copies: 1 Sort: A Check Over Expend: N Discount Vendor 4 Name # of items Net Gross Discount Lost 000020 A&L SUPERIOR QUALITY SOD, INC. 7 301.40 301.40 .00 .00 000100 AID'ELECTRIC CORPORATION 1 242.53 242.53 .00 .00 000318 AMERIPRIDE SERVICES, INC. 1 30.93 30.93 .00 .00 000421 ANOKA COUNTY TREASURY DEPARTMENT 2 280.04 280.04 .00 .00 000478 ARCADE ASPHALT, INC. 1 5,300.00 5,300.00 .00 .00 000541 ASPEN MILLS, INC. 2 320.40 320.40 .00 .00 004469 AUTO NATION FORD WHITE BEAR LAKE 1 117.94 117.94 .00 .00 009001 JILL BERGEN 1 20.00 20.00 .00 .00 000724 BLUE TOW SERVICE, INC. 1 140.00 140.00 .00 .00 008516 BUREAU OF CRIM. APPREHENSION 4 300.00 300.00 .00 .00 000946 C.P. OFFICE PRODUCTS 2 90.52 90.52 .00 .00 000537 CENTRAL PENSION FUND 1 2,150.40 2,150.40 .00 .00 001878 CITY OF HUGO 1 349.03 349.03 .00 .00 900415 CRAIG SEVERSON CONSTRUCTION 1 1,027.00 1,027.00 .00 .00 009006 CTEK POWER, INC. 1 877.45 877.45 .00 .00 009002 CHRISTINE DAMMANN 1 10.00 10.00 .00 .00 001298 RICK DEGARDNER 1 57.12 57.12 .00 .00 001301 DELTA DENTAL PLAN OF MINNESOTA 1 4,210.45 4,210.45 .00 .00 001349 E.H. RENNER & SONS, INC. 1 450.00 450.00 .00 .00 001380 EARL F. ANDERSEN 1 148.25 148.25 .00 .00 007405 FASTENAL INDUSTRIAL/COMMERCIAL, INC. 2 183.20 183.20 .00 .00 000022 FERGUSON WATERWORKS #2516 3 272.76 272.76 .00 .00 Date: 05/29/2014 Time: 15:31:29 City of Lino Lakes FM Entry - Invoice Journal Operator: TJT Page: 2 Discount Vendor # Name # of items Net Gross Discount Lost 007698 FRATTALLONE'S/CIRCLE PINES ACE 8 171.57 171.57 .00 .00 009005 AHMED GULAID 1 45.00 45.00 .00 .00 004562 HD SUPPLY WATERWORKS, LTD. 3 6,433.20 6,433.20 .00 .00 001847 HIRSHFIELD'S PAINT MANUFACTURING,IN 1 760.00 760.00 .00 .00 008740 HYDRAULICS PLUS & CONSULTING, LLC 1 104.96 104.96 .00 .00 001971 INFRATECH 1 12,384.45 12,384.45 .00 .00 000082 J.H. LARSON COMPANY, INC. 2 428.22 428.22 .00 .00 008610 JAY & DEE'S SPECIAL T's 1 577.74 577.74 .00 .00 002310 LEAGUE OF MINNESOTA CITIES 2 438.75 438.75 .00 .00 008971 LIFELINE TRAINING, LTD & CALIBRE PRESS 2 615.00 615.00 .00 .00 008286 LIL MANDILE TOURS 1 1,612.00 1,612.00 .00 .00 007701 LINCOLN NATIONAL LIFE INS CO 1 1,056.74 1,056.74 .00 .00 000191 MACQUEEN EQUIPMENT, INC. 1 710.03 710.03 .00 .00 008224 MEDICA 1 43,762.32 43,762.32 .00 .00 002550 MENARDS, INC. 1 25.53 25.53 .00 .00 002584 METRO SALES INCORPORATED 2 1,061.37 1,061.37 .00 .00 002650 MIDWEST RADAR & EQUIPMENT, INC. 2 600.00 600.00 .00 .00 002720 MINNESOTA CITY/COUNTY MGMT ASSOC 1 151.87 151.87 .00 .00 002931 MN CHILD SUPPORT PAYMENT CENTER 4 1,401.86 1,401.86 .00 .00 008021 MN METRO NORTH TOURISM 1 4,128.00 4,128.00 .00 .00 004791 NAC MECHANICAL & ELECTRICAL SERVICES 1 1,667.50 1,667.50 .00 .00 003091 NCPERS MINNESOTA 1 320.00 320.00 .00 .00 008851 PAVEMENT RESOURCES 1 15,500.00 15,500.00 .00 .00 000677 PHILIP'S TREE CARE 1 364.50 364.50 .00 .00 000217 POLAR CHEVROLET & MAZDA 1 21.97 21.97 .00 .00 009004 SHAWN POUNDSTONE 1 7.28 7.28 .00 .00 003600 PRESS PUBLICATIONS, INC. 2 157.13 157.13 .00 .00 Date: 05/29/2014 Time: 15:31:30 City of Lino Lakes FM Entry - Invoice Journal Operator: TJT Page: 3 'Discount Vendor # Name # of items Net Gross Discount Lost 000468 RELIASTAR LIFE INSURANCE COMPANY 1 1,420.22 1,420.22 .00 .00 003762 RICE CREEK WATERSHED DISTRICT 1 224.62 224.62 .00 .00 009003 SABASTIAN & SONS PLUMBING SERVICES 1 52.00 52.00 .00 .00 004240 STREICHER'S, INC. 2 1,022.97 1,022.97 .00 .00 000539 TARGET BANK 1 300.37 300.37 .00 .00 009007 TWIST OFFICE PRODUCTS 1 35.34 35.34 .00 .00 004590 UNIFORMS UNLIMITED, INC. 1 97.00 97.00 .00 .00 000909 UNIQUE PAVING MATERIALS CORPORATION 7 1,545.00 1,545.00 .00 .00 008980 WETLAND BANK ADMINISTRATION 1 3,911.53 3,911.53 .00 .00 004840 WINNICIC SUPPLY, INC. 6 461.91 461.91 .00 .00 007421 WRIGHT-HENNEPIN CO-OP ELECTRIC ASSOC 1 990.00 990.00 .00 .00 008395 WSB & ASSOCIATES, INC. 1 3,750.00 3,750.00 .00 .00 003250 XCEL ENERGY 1 7,446.74 7,446.74 .00 .00 Grand Totals: 107 132,644.11 132,644.11 .00 .00* Date: 05/29/2014 Time: 15:33:11 Operator: TJT Ranges: Page: 1 City of Lino Lakes FM Entry - Invoice Payment - Department Report Fund: Dept Id: Program: Vendor #: Invoice #: Schedule Journal #: Bank #: (A) (A) (A) (A) (A) (R) 11920 - 11924 (A) Options: Print Ranges/Options: Y # of copies: 1 Page on Department: N Department Vendor Name Description Amount ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION FINANCE FINANCE FINANCE FINANCE RELIASTAR LIFE INSUR JUNE INS PREMIUMS 1,229.28 CENTRAL PENSION FUND MAY CENTRAL PENSION FUND 2,150.40 DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS 1,774.64 MN CHILD SUPPORT PAY CHILD SUPPORT 1,401.86 NCPERS MINNESOTA JUNE NCPERS INS PREMIUMS 320.00 MEDICA JUNE MEDICAL INS PREMIUM 5,435.10 SABASTIAN & SONS PLU REFUND PEMIT 2014-00176 52.00 Total for Department 12,363.28* RELIASTAR LIFE INSUR DELTA DENTAL PLAN OF LEAGUE OF MINNESOTA MINNESOTA CITY/COUNT LINCOLN NATIONAL LIF MEDICA JUNE INS PREMIUMS JUNE DENTAL INS PREMIUMS LMC ANNUAL CONFERENCE 2014 ANNUAL MEMBERSHIP JUNE INS PREMIUMS JUNE MEDICAL INS PREMIUM Total for Department 402 9.00 124.64 375.00 151.87 58.24 966.13 1,684.88* RELIASTAR LIFE INSUR JUNE INS PREMIUMS 9.00 DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS 124.62 LINCOLN NATIONAL LIF JUNE INS PREMIUMS 57.48 MEDICA JUNE MEDICAL INS PREMIUM 1,069.31 Total for Department 407 1,260.41* ECONOMIC DEVELOPMENT MN METRO NORTH TOURI APRIL MN METRO NORTH TOU Total for Department 415 PLANNING & ZONING PLANNING & ZONING PLANNING & ZONING PLANNING & ZONING PLANNING & ZONING COMM DEV COMM DEV POLICE POLICE POLICE RELIASTAR LIFE INSUR JUNE INS PREMIUMS DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS PRESS PUBLICATIONS, AMEND CHAPTER 1010 CITY LINCOLN NATIONAL LIF JUNE INS PREMIUMS MEDICA JUNE MEDICAL INS PREMIUM Total for Department 416 RELIASTAR LIFE INSUR JUNE INS PREMIUMS LINCOLN NATIONAL LIF JUNE INS PREMIUMS Total for Department 418 RELIASTAR LIFE INSUR JUNE INS PREMIUMS ASPEN MILLS, INC. UNIFORM ALLOWANCE M.MONS ASPEN MILLS, INC. UNIFORM ALLOWANCE M.PAUL 4,128.00 4,128.00* 3.00 41.55 33.08 16.45 412.71 506.79* 6.00 41.59 47.59* 81.00 290.70 29.70 Date: 05/29/2014 Time: 15:33:11 Operator: TJT Department Page: 2 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE FIRE FIRE FIRE FIRE BUILDING BUILDING BUILDING BUILDING BUILDING STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS INSPECTIONS INSPECTIONS INSPECTIONS INSPECTIONS INSPECTIONS DELTA DENTAL PLAN OF LEAGUE OF MINNESOTA MIDWEST RADAR & EQUI XCEL ENERGY STREICHER'S, INC. STREICHER'S, INC. UNIFORMS UNLIMITED, LINCOLN NATIONAL LIF MEDICA BUREAU OF CRIM. APPR BUREAU OF CRIM. APPR BUREAU OF CRIM. APPR BUREAU OF CRIM. APPR LIFELINE TRAINING, L LIFELINE TRAINING, L .NNE DENTAL INS PREMIUMS PATROL SUBSCRIPTION RADAR CALIBRATION ELECTRIC BALLISTIC VEST S.WAGNER UNIFORM ALLOWANCE S.WAGN UNIFORM AWARD RIBBONS JUNE INS PREMIUMS JUNE MEDICAL INS PREMIUM DMT -G RECERTIFICATION M. DMT -G RECERTIFICATION P. DMT -G RECERTIFICATION V. DMT -G RECERTIFICATION W. SEMINAR ANATOMY OF FORCE SEMINAR BEYOND THE CONES Total for Department 420 RELIASTAR LIFE INSUR JUNE INS PREMIUMS DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS LINCOLN NATIONAL LIF JUNE INS PREMIUMS MEDICA JUNE MEDICAL INS PREMIUM Total for Department 421 RELIASTAR LIFE INSUR DELTA DENTAL PLAN OF CITY OF HUGO LINCOLN NATIONAL LIF MEDICA JUNE INS PREMIUMS JUNE DENTAL INS PREMIUMS 5/15,5/22 BUILDING DEPT JUNE INS PREMIUMS JUNE MEDICAL INS PREMIUM Total for Department 422 A&L SUPERIOR QUALITY A&L SUPERIOR QUALITY A&L SUPERIOR QUALITY AMERIPRIDE SERVICES, ANOKA COUNTY TREASUR PALLET DEPOSIT PALLET DEPOSIT CREDIT SOD FOR PLOW DAMAGE REPA SHOP TOWELS 1ST QTR SIGNAL MAINTENAN RELIASTAR LIFE INSUR JUNE UNIQUE UNIQUE UNIQUE UNIQUE UNIQUE UNIQUE PAVING MATERI 1.43 PAVING MATERI 1.59 PAVING MATERI 1.77 PAVING MATERI 1.84 PAVING MATERI 1.88 PAVING MATERI 1.97 DELTA DENTAL PLAN OF EARL F. ANDERSEN XCEL ENERGY RICE CREEK WATERSHED WINNICK SUPPLY, INC. WRIGHT-HENNEPIN CO -0 LINCOLN NATIONAL LIF MEDICA INS PREMIUMS WINTER WINTER WINTER WINTER WINTER WINTER TN UPM #2 TN UPM #2 TN UPM #2 TN UPM 82 TN UPM 82 TN UPM 82 CO CO CO CO CO CO JUNE DENTAL INS PREMIUMS DAMAGED NAME PLATE REPLA ELECTRIC ACD 53-62 WMD CHARGE PVC PIPES FOR TEMP CULVE MAY ELECTRIC JUNE INS. PREMIUMS JUNE MEDICAL INS PREMIUM 1,189.38 63.75 600.00 3.61 895.00 127.97 97.00 483.94 22,522.80 75.00 75.00 75.00 75.00 357.00 258.00 27,299.85* 9.00 83.10 43.02 2,344.97 2,480.09* 6.00 83.09 349.03 32.44 966.13 1,436.69* 20.00 -40.00 321.40 30.93 130.04 21.00 178.75 198.75 221.25 230.00 470.00 246.25 249.30 148.25 4,531.11 224.62 250.70 990.00 99.77 2,063.55 Date: 05/29/2014 Time: 15:33:11 Operator: TJT Department Page: 3 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount STREETS STREETS STREETS STREETS STREETS STREETS FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS WSB & ASSOCIATES, IN PAVEMENT RESOURCES PAVEMENT RESOURCES PAVEMENT RESOURCES PAVEMENT RESOURCES PAVEMENT RESOURCES Total for D APRIL SPRAY SPRAY SPRAY SPRAY SPRAY MACQUEEN EQUIPMENT, POLAR CHEVROLET & MA RELIASTAR LIFE INSUR DELTA DENTAL PLAN OF MENARDS, INC. AUTO NATION FORD WHI WINNICK SUPPLY, INC. WINNICK SUPPLY, INC. WINNICK SUPPLY, INC. FASTENAL INDUSTRIAL/ DRIVER FEEDBACK SI PATCHING -2ND AVENU PATCHING -FOX TRACE PATCHING -SHORES OF PATCHING -WARE RD PATCHING-WENZEL FA epartment 430 #252 WATER PUMP #209 CAP JUNE INS PREMIUMS JUNE DENTAL INS PREMIUMS HOT BOX INSTALLATION PAR #373 ALIGNMENT HOT BOX SETUP STOCK SQUARE TUBES,FLAT WELDER PARTS SHOP STOCK SUPPLIES FRATTALLONE'S/CIRCLE MECHANIC PARTS FRATTALLONE'S/CIRCLE SCREW EXTRACTOR BITS LINCOLN NATIONAL LIF JUNE INS PREMIUMS. MEDICA JUNE MEDICAL INS PREMIUM HYDRAULICS PLUS & CO HOSES FOR PROGRESSIVE MO POUNDSTONE, SHAWN HOT BOX PARTS Total for Department 431 J.H. LARSON COMPANY, BULBS AID ELECTRIC CORPORA REPLACE PD SWITCHES,POWE ANOKA COUNTY TREASUR JUNE BROADBAND C.P. OFFICE PRODUCTS 11x17 COPY PAPER C.P. OFFICE PRODUCTS SURGE PROTECTORS,SCISSOR METRO SALES INCORPOR COPIER MAINTENANCE CONTR METRO SALES INCORPOR COPIER MAINTENANCE CONTR NAC MECHANICAL & ELE CONTROLS MAINTENANCE ON FRATTALLONE'S/CIRCLE ANT TRAPS FRATTALLONE'S/CIRCLE PARTS TWIST OFFICE PRODUCT POCKET FILE FOLDERS,LABE CRAIG SEVERSON CONST REPAIR EXTERIOR DOORS LL Total for Department 432 RELIASTAR LIFE INSUR PHILIP'S TREE CARE DEGARDNER, RICK DELTA DENTAL PLAN OF HIRSHFIELD'S PAINT M XCEL ENERGY FRATTALLONE'S/CIRCLE FRATTALLONE'S/CIRCLE LINCOLN NATIONAL LIF MEDICA JUNE INS PREMIUMS FERTILIZER,BROADLEAF,HER MILEAGE JUNE DENTAL INS PREMIUMS ATHLETIC FIELD STRIPING ELECTRIC TROWEL HANDLES TWINE JUNE INS PREMIUMS JUNE MEDICAL INS PREMIUM 3,750.00 3,100.00 3,100.00 3,100.00 3,100.00 3,100.00 29,835.67* 710.03 21.97 1.95 41.55 25.53 117.94 84.16 36.97 8.30 8.62 21.74 51.56 14.47 966.13 104.96 7.28 2,223.16* 428.22 242.53 150.00 15.00 75.52 459.00 602.37 1,667.50 13.48 23.56 35.34 1,027.00 4,739.52* 17.70 364.50 57.12 145.41 760.00 62.25 39.96 8.99 73.12 3,746.64 Date: 05/29/2014 Time: 15:33:11 Operator: TJT Department Page: 4 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount RECREATION RECREATION RECREATION RECREATION RECREATION RECREATION ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL ENVIRONMENTAL SOLID WASTE SOLID WASTE SOLID WASTE SOLID WASTE SOLID WASTE FORESTRY FORESTRY FORESTRY FORESTRY Total for Department 450 RELIASTAR LIFE INSUR TARGET BANK DELTA DENTAL PLAN OF LINCOLN NATIONAL LIF MEDICA JUNE INS PREMIUMS PLAYGROUND SUPPLIES JUNE DENTAL INS PREMIUMS JUNE INS PREMIUMS JUNE MEDICAL INS PREMIUM JAY & DEE'S SPECIAL TYE DYE T-SHIRTS FOR REC Total for Department 451 RELIASTAR LIFE INSUR JUNE INS PREMIUMS DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS LINCOLN NATIONAL LIF JUNE INS PREMIUMS MEDICA JUNE MEDICAL INS PREMIUM Total for Department 461 RELIASTAR LIFE INSUR JUNE INS PREMIUMS TARGET BANK RECYCLE DAY SUPPLIES DELTA DENTAL PLAN QF JUNE DENTAL INS PREMIUMS LINCOLN NATIONAL LIF JUNE INS PREMIUMS MEDICA JUNE MEDICAL INS PREMIUM Total for Department 462 RELIASTAR LIFE INSUR JUNE INS PREMIUMS DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS LINCOLN NATIONAL LIF JUNE INS PREMIUMS MEDICA JUNE MEDICAL INS PREMIUM Total for Department 463 Total for Fund 101 BERGEN, JILL DAMMANN, CHRISTINE GULAID, AHMED REFUND PROGRAM OVERPAYME REFUND PROGRAM OVERPAYME REFUND PROGRAM OVERPAYME Total for Department SPECIAL EVENTS/TRIPS TARGET BANK SENIOR PROGRAM SUPPLIES SPECIAL EVENTS/TRIPS LIL MANDILE TOURS TOUR SIMPLICITY AND TRAD Total for Department 205 POLICE POLICE POLICE Total for Fund 201 BLUE TOW SERVICE, IN ICR #14-103418 FORD RANG Total for Department 420 Total for Fund 207 WINNICK SUPPLY, INC. NEW SQUAD REAR BATTERY 5 CTEK POWER, INC. POWER SUPPLY FOR NEW SQU Total for Department 420 5,275.69* 9.60 132.47 132.95 48.79 1,018.65 577.74 1,920.20* 1.05 14.54 6.90 144.45 166.94* .90 51.54 12.47 5.91 123.81 194.63* 1.05 14.54 6.90 144.45 166.94* 95,730.33* 20.00 10.00 45.00 75.00* 116.36 1,612.00 1,728.36* 1,803.36* 140.00 140.00* 140.00* 81.78 877.45 959.23* Date: 05/29/2014 Time: 15:33:12 Operator: TJT Page: 5 City of Lino Lakes FM Entry - Invoice Payment - Department Report Department Vendor Name Description Amount Total for Fund 402 959.23* OTHER WETLAND BANK ADMINIS REPLACE CK#97961 21ST AV 3,911.53 Total for Department 499 3,911.53* Total for Fund 477 3,911.53* WATER RELIASTAR LIFE INSUR JUNE INS PREMIUMS 7.35 WATER ARCADE ASPHALT, INC. VALVE REPAIR PATCHING 5,300.00 WATER DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS 89.34 WATER E.H. RENNER & SONS, WELL PUMP INSPECTIONS 450.00 WATER XCEL ENERGY ELECTRIC 1,310.58 WATER HD SUPPLY WATERWORKS WATER PARTS-ACCUSTREAM 2,686.92 WATER HD SUPPLY WATERWORKS WATER PARTS-COPPERHORN 710.80 WATER HD SUPPLY WATERWORKS WATER PARTS-IPERL MTR,SW 3,035.48 WATER FRATTALLONE'S/CIRCLE POST EYE LIGHT CONTROL 7.49 WATER LINCOLN NATIONAL LIF JUNE INS PREMIUMS 33.78 WATER MEDICA JUNE MEDICAL INS PREMIUM 918.77 Total for Department 494 14,550.51* Total for Fund 601 14,550.51* SEWER FERGUSON WATERWORKS HYDRA PLUG CMNT 68.11 SEWER FERGUSON WATERWORKS SEWER PARTS 204.65 SEWER RELIASTAR LIFE INSUR JUNE INS PREMIUMS 7.34 SEWER DELTA DENTAL PLAN OF JUNE DENTAL INS PREMIUMS 89.33 SEWER INFRATECH JET VAC SANITARY SEWER 12,384.45 SEWER XCEL ENERGY ELECTRIC 1,539.19 SEWER FASTENAL INDUSTRIAL/ SHOP STOCK SUPPLIES 174.58 SEWER FRATTALLONE'S/CIRCLE CLAMP BATTERY 4.79 SEWER LINCOLN NATIONAL LIF JUNE INS PREMIUMS 33.94 SEWER MEDICA JUNE MEDICAL INS PREMIUM 918.72 Total for Department 495 15,425.10* Total for Fund 602 15,425.10* PRESS PUBLICATIONS, ORD.05-14 TALAN RIDGE 124.05 Total for Department 124.05* Total for Fund 801 124.05* Grand Total 132,644.11* CENTENNIAL FIRE DISTRICT Check Register - FIRE GL Page: 1 Check Issue Dates: 6/1/2014 - 6/5/2014 Jun 05, 2014 01:57PM Report Criteria: Report type: Summary GL Check Check Vendor Period Issue Date Number Number Payee Description Check Amount 06/14 06/05/2014 6426 06/14 06/05/2014 6427 06/14 06/05/2014 6428 06/14 06/05/2014 6429 06/14 06/05/2014 6430 06/14 06/05/2014 6431 06/14 06/05/2014 6432 06/14 06/05/2014 6433 06/14 06/05/2014 6434 06/14 06/05/2014 6435 06/14 06/05/2014 6436 06/14 06/05/2014 6437 06/14 06/05/2014 6438 06/14 06/05/2014 6439 Grand Totals: 11565 20353 20355 30220 30495 30500 31137 60050 70578 90120 130205 130855 190175 220200 ASPEN MILLS, INC BLAINE BROTHERS, INC BLAINE EYE CLINIC CAPITAL CITY FIREFIGHTERS CITY OF CENTERVILLE CENTURY LINK CONNEXUS ENERGY FISDAP GRAINGER IKE'S PLUMBING & DRAIN MMKR, INC MN FIRE CHIEF'S ASSOCIATIO ST CLOUD TECH & COMM COL VERIZON WIRELESS UNIFORMS Ell REPAIR SAFETY GLASSES 2014 DUES STATION 3 APRIL UTILITIES STATION 3 PHONE ELECTRIC STATION 1 EMT BASIC TESTS SALES TAX FLOOR DRAIN CLEANING STAT FINAL 2013 AUDIT BILLING TRAILER RENTAL FEE FIRE COURSE PD/DB COMMUNICATIONS 225.40 1,136.89 202.06 50.00 756.64 57.20 487.19 80.00 32.04 125.00 5,670.00 50.00 100.00 96.06 9,068.48 M = Manual Check, V = Void Check CENTENNIAL FIRE DISTRICT Invoice Register - Edit Report Page: 1 Input Dates: 6/1/2014 - 6/5/2014 Jun 05, 2014 01:57PM Name Vendor Number Invoice Seq Type Description Invoice Date Payment Due Date Total Cost GL Account GL Period 06/05/2014 11565 ASPEN MILLS, INC ASPEN MIL 11565 149633 1 Invoi UNIFORMS 06/05/2014 06/05/2014 78.80 801-42-2210-218 06/14 ASPEN MIL 11565 149634 1 Invoi UNIFORMS 06/05/2014 06/05/2014 48.95 801-42-2210-218 06/14 ASPEN MIL 11565 149893 1 Invoi UNIFORMS 06/05/2014 06/05/2014 97.65 801-42-2210-218 06/14 Total 11565 ASPEN MILLS, INC: 225.40 20353 BLAINE BROTHERS, INC BLAINE BR 20353 12414001 1 Invoi Ell DOT INSP AND MTC 06/05/2014 06/05/2014 742.20 801-42-2210-404 06/14 BLAINE BR 20353 12414702 1 Invoi El1 REPAIR 06/05/2014 06/05/2014 394.69 801-42-2210-404 06/14 Total 20353 BLAINE BROTHERS, INC: 1,136.89 20355 BLAINE EYE CLINIC BLAINE EY 20355 64420 1 Invoi SAFETY GLASSES 06/05/2014 06/05/2014 202.06 801-42-2210-218 06/14 Total 20355 BLAINE EYE CLINIC: 202.06 30220 CAPITAL CITY FIREFIGHTERS ASSN CAPITAL CI 30220 060514 1 Invoi 2014 DUES 06/05/2014 06/05/2014 50.00 801-42-2210-433 06/14 Total 30220 CAPITAL CITY FIREFIGHTERS ASSN: 50.00 30495 CITY OF CENTERVILLE CITY OF C 30495 8919 1 Invoi STATION 3 APRIL UTILITIES 06/05/2014 06/05/2014 756.64 801-42-2210-380 06/14 Total 30495 CITY OF CENTERVILLE: 756.64 30500 CENTURY LINK CENTURY 30500 060514 1 Invoi STATION 3 PHONE 06/05/2014 06/05/2014 57.20 801-42-2210-321 06/14 Total 30500 CENTURY LINK: 57.20 31137 CONNEXUS ENERGY CONNEXU 31137 060514 1 Invoi ELECTRIC STATION 1 06/05/2014 06/05/2014 487.19 801-42-2210-380 06/14 Total 31137 CONNEXUS ENERGY: 487.19 60050 FISDAP FISDAP 60050 1205E052 1 Invoi EMT BASIC TESTS 06/05/2014 06/05/2014 80.00 801-42-2210-332 06/14 Total 60050 FISDAP: 80.00 70578 GRAINGER GRAINGER 70578 94400893 1 Invoi BLDG MTC 06/05/2014 06/05/2014 34.24 801-42-2210-401 06/14 GRAINGER 70578 94400893 2 Invoi SALES TAX 06/05/2014 06/05/2014 2.20- 801-21800 06/14 Total 70578 GRAINGER: 32.04 90120 IKE'S PLUMBING & DRAIN IKE'S PLU 90120 3979 1 Invoi FLOOR DRAIN CLEANING STAT 06/05/2014 06/05/2014 125.00 801-42-2210-401 06/14 Total 90120 IKE'S PLUMBING & DRAIN: 125.00 130205 MMKR, INC MMKR, INC 130205 35751 1 Invoi FINAL 2013 AUDIT BILLING 06/05/2014 06/05/2014 5,670.00 801-42-2210-301 06/14 CENTENNIAL FIRE DISTRICT Invoice Register - Edit Report Page: 2 Input Dates: 6/1/2014 - 6/5/2014 Jun 05, 2014 01:57PM Name Vendor Number Invoice Seq Type Description Invoice Date Payment Due Date Total Cost GL Account GL Period Total 130205 MMKR, INC: 5,670.00 130855 MN FIRE CHIEF'S ASSOCIATION MN FIRE C 130855 060514 1 Invoi TRAILER RENTAL FEE 06/05/2014 06/05/2014 50.00 801-42-2210-217 06/14 Total 130855 MN FIRE CHIEFS ASSOCIATION: 50.00 190175 ST CLOUD TECH & COMM COLLEGE ST CLOUD 190175 00144702 1 Invoi FIRE COURSE PD/DB 06/05/2014 06/05/2014 100.00 801-42-2210-331 06/14 Total 190175 ST CLOUD TECH & COMM COLLEGE: 100.00 220200 VERIZON WIRELESS VERIZON 220200 97252798 1 Invoi COMMUNICATIONS 06/05/2014 06/05/2014 96.06 801-42-2210-321 06/14 Total 220200 VERIZON WIRELESS: 96.06 Total 06/05/2014: 9,068.48 6/5/2014 GL Period Summary GL Period Amount 06/14 9,068.48 Grand Totals: 9,068.48 Grand Totals: 9,068.48 Report GL Period Summary GL Period Amount 06/14 9,068.48 Grand Totals: 9,068.48 Vendor number hash: 1110291 Vendor number hash - split: 1180869 Total number of invoices: 17 Total number of transactions: 18 Terms Description Invoice Amount Discount Amount Net Invoice Amount Open Terms 9,068.48 .00 9,068.48 Grand Totals: 9,068.48 .00 9,068.48 CITY COUNCIL WORK SESSION May 27, 2014 DRAFT CITY OF LINO LAKES 2 MINUTES 3 4 DATE : May 27, 2014 5 TIME STARTED : 5:35 p.m. 6 TIME ENDED : 6:35 p.m. 7 MEMBERS PRESENT : Council Member Stoesz, Kusterman, 8 Rafferty, Roeser and Mayor Reinert 9 MEMBERS ABSENT : None 10 11 12 Staff members present: City Administrator Jeff Karlson; Public Safety Director John 13 Swenson; Community Development Director Michael Grochala; City Clerk Julie Bartell 14 15 1. Review Regular Agenda - 16 17 3A) Consideration of Springsted's Fire Department Analysis- City Administrator 18 Karlson noted that Consultants Dave Unmacht, Matt Stark and Pat Simpson were present 19 at the meeting by speakerphone. 20 21 Mr. Unmacht provided a high level overview of the material in his report that is entitled 22 City of Lino Lakes Fire Department Analysis He identified the five specific components 23 of the scope of services related to the report. Also noted was the study process used to 24 complete the report. He then reviewed the options included in the report as well as the 25 provisions of each. Considerations for moving forward with one of the options are also 26 included in the report. There is information included that confirms the understanding 27 going into the study that another fire station is needed and should be built — and that 28 would be true regardless of a split from the Centennial Fire District (CFD). He noted that 29 there are some assumptions included because some information, such as what equipment 30 will be needed, is not yet available. The report identifies the importance of volunteer 31 recruitment and training. The report is intended to assist the council as it proceeds with 32 policy discussion on plans for fire services in the city. 33 34 Mayor Reinert noted that there are a couple of things not included in the report. The 35 council did request options on where the new station could be located. The report 36 includes one such option that will never make sense and that is locating the station at the 37 "S" curve on Birch. No included in the report is an option to locate it on 12th or Birch 38 and Centerville — two maps that he'd like to see. Looking at response time from Birch 39 and Centerville, it is arguable under that scenario that Lino Lakes would have better 40 service with two stations than with the three current and could build on land the city 41 already owns. The mayor also clarified that the report contains assumptions on 42 equipment costs at a level that would never be necessary but he understands that the 43 consultants used a number that represents "starting from scratch". The 68% of current 44 equipment that Lino Lakes will get from the CFD isn't identified as yet and the number of 1 CITY COUNCIL WORK SESSION May 27, 2014 DRAFT 45 new firefighters needing new equipment doesn't take into consideration personnel that 46 join who already have equipment. 47 48 Council Member Roeser suggested that the cost of staying with the CFD and adding a 49 new station actually could have resulted in the higher costs. He also noted that there will 50 be savings also when the city can stop subsidizing the other cities in CFD and as well 51 there is the possibility of utilizing land that the city already owns for a new station. If a 52 new station were to locate on the city land, that is being looked at as well for ball fields so 53 it would be beneficial to have a fire station and perhaps a police substation near the 54 athletic facilities. The mayor added that the new station proposed in the report would be 55 larger than originally anticipated and therefore has the potential for community meeting 56 space. Regarding the costs of a fire department, the day to day costs would not go up not 57 considering the bonding for a new station which would have been necessary at any rate. 58 59 Council Kusterman asked if the options are presented in order of the consultant's 60 recommendation and the response was that there was no priority presented. 61 62 (Dave Unmacht was excused from the conversation due to another commitment.) 63 64 Administrator Karlson noted that a two-year window for implementation exists (from 65 January 2014) and that means that the council will have to move soon on its decisions. 66 Mr. Karlson reviewed the next steps that would begin implementation of the council's 67 preferred option. 68 69 The council discussed recruitment ideas. The mayor noted that there may be an option to 70 offer a five year vesting period for pensions as compared to the current ten. Council 71 Member Stoesz suggested keeping an open mind about incentives that could draw 72 personnel. 73 74 The council discussed the structure of the firefighter pension program. Those pensions 75 aren't necessarily portable from one fire department to another but that's a change being 76 explored. The mayor noted that, based on what he's heard from the other cities, a 77 legislative change doesn't appear to be on the horizon; this city will put forward a good 78 and sustainable pension option he is certain. Administrator Karlson noted that Springsted 79 will be providing additional information on pension options. It was clarified that pension 80 funds are invested by the State Investment Board. 81 82 The council discussed the action they will consider at this point. Administrator Karlson 83 explained that the council should consider moving forward on one of the two preferred 84 options since time is important and there is a two-year deadline. Mayor Reinert said he 85 is leaning toward the Public Safety Department model — he likes the possibility of 86 administrative savings — but there is a right and wrong way to do that. Council Member 87 Rafferty suggested that he'd like more time to study the report; he'd be okay with 88 accepting the report as an action. Administrator Karlson remarked that staff is at a point 89 where it's important to know the council's decision on the type of department; staff's 2 CITY COUNCIL WORK SESSION May 27, 2014 DRAFT 90 recommendation is the Public Safety Department. Mayor Reinert suggested that, if more 91 time is needed, the council could hold a special council meeting on June 2 when there is 92 already a work session scheduled. Tonight's action could still be to accept the report and 93 acknowledge that the city will be moving forward on a separate department. Police 94 Chief Swenson noted that time is of the essence especially as it concerns the need to 95 begin recruiting firefighters. 96 97 The council concurred that they would recess this work session and reconvene after the 98 regular council meeting. 99 100 The meeting was recessed at 6:35 p.m. 101 102 The meeting reconvened at 7:40 p.m. All members of the council were present. 103 104 Police Chief Swenson returned to discussion of the report, noting the pros and cons of the 105 two models — standalone fire department or public safety department model. Even with 106 the public safety department there are examples in other cities indicating different 107 models. He supports a model separating the police and fire personnel in that police, when 108 on duty, do not perform fire fighter duties. The police department does not have enough 109 personnel to sustain that model. In order to move forward with recruiting and other 110 pressing elements, the council needs to identify the model that should proceed so that 111 leadership and articulation of the plan can proceed. Recruitment is an important element 112 and having a clear plan will assist in that effort as well. 113 114 Council Members weighed in on the options: 115 116 Mayor Reinert noted that, through the review process and with the assistance of 117 information from Chief Swenson, he is seeing the public safety department model 118 as the way to go for this city. On the matter of moving forward, it's clear from 119 the expert assistance that the city will be able to do this project and now the drill 120 down to get a department in place must begin. He has heard from a number of 121 firefighters who support the effort and are open to recruitment. 122 123 Council Member Roeser said he likes the idea of having central administration, as 124 provided by a public safety department model. He'd also like to see work begin 125 on service agreements anticipated with other fire departments in the area, as he 126 knows that will be necessary. How the city establishes the pension plan for the 127 department will be an important element for recruitment. 128 129 - Council Member Kusterman asked how the city will establish a plan to get 130 recruits trained. Chief Swenson explained the means available to recruit trained 131 personnel as well as training options that will be explored. Chief Swenson added 132 that an important element is having leadership identified and in place so plans can 133 move ahead under that person's guidance. Council Member Kusterman likes the 134 idea of a public safety department because it allows the city to "hit the ground 135 running" more so than other options. 3 CITY COUNCIL WORK SESSION May 27, 2014 DRAFT 136 137 - Council Member Stoesz wondered if there is a possibility of a fire district again in 138 the future and Police Chief Swenson indicated that wouldn't be a discussion he'd 139 enter at this time. Council Member Stoesz asked about how properties bordering 140 or outside the city borders are handled under mutual aid and Chief Swenson 141 explained that mutual aid and auto agreements are status quo and will be a part of 142 any department and are something that will begin to be established as soon as 143 possible. 144 145 Council Member Rafferty noted that just the changes at CFD will decrease the 146 number of firefighters needed there. 147 148 Current firefighters in the audience offered comments on the public safety department 149 model, the need to keep roles of police and firefighters separate, the importance of the 150 pension issues to current personnel (not losing pension benefits), and the importance of 151 recruiting some trained personnel, 152 153 Administrator Karlson noted that there will be an actuarial done so that personnel can see 154 exactly how individual pensions will look. 155 156 The council discussed how to move forward. Chief Swenson suggested that the public 157 safety department or standalone fire department are the two options he sees. 158 159 Council Member Rafferty expressed that he'd prefer to have more time to review the 160 report. Since the council only gives direction at work session, the council would act at a 161 council meeting to authorize steps forward. 162 163 On architectural services for a new station, Community Development Director Grochala 164 noted that he plans to send out the request for qualifications to eight firms just to receive 165 information on possibilities; hiring for the project would be subject to a council vote in 166 future. 167 168 The mayor announced that he is hearing concurrence on accepting the report, having a 169 fire department, having a new fire station, and establishing it though a department of 170 public safety. So staff is directed to move in that direction. The council can set a special 171 meeting to precede the work session on June 2 to take a vote on formal directions. 172 Council Member Roeser said he wants to ensure that communications on what is 173 occurring is fully open with the CFD personnel. Chief Swenson said he will be 174 providing status updates to that personnel as well as implementing a recruitment plan as 175 soon as possible. 176 177 2. Street Reconstruction Plan Update — Community Development Director 178 Grochala distributed a map and recalled that the council has previously discussed this 179 plan and setting the stage for the issuance of street reconstruction bonds for a project in 180 the beginning of 2015. The draft the council has seen had five phases of projects totaling 181 about $15 million. Staff has worked with Springsted on phasing and is now 4 CITY COUNCIL WORK SESSION May 27, 2014 DRAFT 182 recommending a 2015 and 2019 project as the first phase. The consultants are drafting 183 the Street Reconstruction Plan itself. As indicated on the map distributed, Phase 1 would 184 be the Shennandoah area. He explained the steps required under state statute to proceed 185 with a street reconstruction program. The next step for the city is to call a public hearing 186 with proper notice and staff is prepared to move on that element. He explained the bond 187 analysis that has occurred and anticipated yearly debt service that would occur above and 188 beyond the city's current budget commitment to street reconstruction. There is a petition 189 for referendum period of thirty days allowed under statute and the current schedule would 190 allow for a ballot question if indeed that was petitioned for. 191 192 Council Member Kusterman noted that the plan should be fair as far as project locations 193 within the city — not all projects in the same area. Staff pointed out that the map doesn't 194 show the whole story such as consideration of street overlay projects. The mayor would 195 like to see a map that shows overlays over the past years also. 196 197 The council concurred to call the public hearing after which they will consider this plan; 198 staff was directed to publish proper notice. 199 200 These minutes were considered, corrected and approved at the regular Council meeting held on 201 June 9, 2014. 202 203 204 205 206 Julianne Bartell, City Clerk Jeff Reinert, Mayor 207 5 COUNCIL MINUTES May 27, 2014 DRAFT 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE : May 27, 2014 5 TIME STARTED : 6:40 p.m. 6 TIME ENDED : 7:20 p.m. 7 MEMBERS PRESENT : Council Member Stoesz, Kusterman, Rafferty, 8 Roeser, and Mayor Reinert 9 MEMBERS ABSENT 10 11 Staff members present: City Administrator Jeff Karlson; Community Development Director Michael 12 Grochala; Chief of Police John Swenson; and City Clerk Julie Bartell 13 14 PUBLIC COMMENT 15 16 Mayor Reinert announced that there was recently some confusing information reported by the media 17 regarding flags at the American Legion in Lino Lakes. The fact is that the city did not tell the Legion 18 that they had too many flags flying and they have been told that they can fly as many American flags 19 as they wish. 20 21 John DeHaven, 1612 Birch Street, asked the council to consider limiting the time that individuals can 22 serve on city advisory boards. He thinks that four years is enough. 23 24 SETTING THE AGENDA 25 26 The agenda was approved as presented. 27 28 CONSENT AGENDA 29 30 Council Member Rafferty moved to approve the Consent Agenda, Items lA through 1G as presented. 31 Council Member Stoesz seconded the motion. Motion carried on a unanimous voice vote. 32 33 ITEM ACTION 34 35 Consideration of Expenditures: 36 37 May 27, 2014 (Check No. 98030 — 98109, $374,306.90) Approved 38 39 Centennial Fire Dist. (Check No. 6404 - 6425, $97,095.15) Approved 40 41 May 5, 2014 Council Work Session Minutes Approved 42 43 May 12, 2014 Council Meeting Minutes Approved 44 45 May 5, 2014 Closed Council Meeting Minutes Approved 1 COUNCIL MINUTES May 27, 2014 DRAFT 46 47 Resolution No. 14-42, Special Event Permit for 48 Lino Lakes YMCA Farmers Market Approved 49 50 May 12, 2014 Board of Appeal Minutes Approved 51 52 Appointment to Park Board Approved 53 54 FINANCE DEPARTMENT REPORT, AL ROLEK 55 56 There was no report from the Finance Department. 57 58 ADMINISTRATION DEPARTMENT REPORT, DAN TESCH 59 60 3A) Springsted's Fire Department Analysis — Administrator Karlson reported that the Fire 61 Department Analysis report as prepared by Springsted, Inc. is before the council. 62 63 He noted the five specific components of the analysis: 64 - Baseline fire service overview; 65 - Models for department organization; 66 - Addition of one fire facility in Lino Lakes; 67 - Essential needs required for starting a fire department; 68 - Pros and cons of combining the police department and fire department. 69 70 He also reviewed options a future fire department: 71 - Stay with current fire department (identified as a poor option with the governance issues that 72 exist); 73 - Create a Lino Lakes Fire Department (identified as a good option); 74 - Contracting for fire service through other departments in the ares (identified as not a good 75 option due mostly to time constraints but could be considered in the future); 76 Establishing a new district with other jurisdictions (identified as not a good option because of 77 timing and independence issues); 78 - Establish a new city department and contract for services with CFD (identified as not a good 79 option); 80 - Create a public safety department by combining the police department and fire department 81 (identified as a recommended option). 82 83 He noted again the two options recommended for consideration by staff. 84 85 He then reviewed the steps needed to be taken by the city council in order to move forward: 86 - Communicate with architectural firms on the design of a new fire station; 87 - Contract with consultants on formation of a business model; 88 - Development of a phasing plan for implementation of the department; 89 - Personnel decisions; 90 - Establish a pension plan for fire personnel. 2 COUNCIL MINUTES May 27, 2014 DRAFT 91 92 Mr. Karlson noted that the report contains information regarding service projections, the overall need 93 for a new station in Lino Lakes, that the annual operating costs would not increase, that some mutual 94 aid will still be needed for fire services, and that there will be certain costs related to starting a new 95 department. But he added that the numbers in the report are a worst case scenario. 96 97 The action requested of the city council: 98 - Accept the report; 99 - Move forward with recommendations as the council desires. 100 101 Mayor Reinert noted that, as far as moving to having a new department, he feels that the decision was 102 really made by the council members of all three cities involved in the Centennial Fire District (CFD). 103 He highlighted that if the city were to locate the new fire station at Birch Street and Centerville Road, 104 a response time map for that location shows improved response coverage from what currently exists. 105 Furthermore that location would involve land already owned by the city. He also noted that there 106 have been some dishonest statements made about costs rising and he can report that the analysis 107 indicates that costs on a day to day operational basis won't increase. He added that the new station 108 the city is looking at will actually have more space than anticipated and that means the possibility of a 109 community meeting room. The possibility of a police substation has also been discussed. He 110 explained why equipment costs will be less than estimated in the report because there will be 111 equipment from the CFD and some recruitment of firefighters. The council will be having more 112 discussion about the plans including pension options. 113 114 Brad Robinson, 597 Marshan Lane, addressed the council. He noted that there was a "fire 115 committee" that worked with the consultants on providing information and direction on the analysis. 116 He wonders why someone with experience in fire services wasn't included in that group. 117 Administration Karlson explained that the fire committee mentioned was a working group — three 118 staff members and the mayor — and their purpose was to provide basic information needed by the 119 consultants who did the analysis. 120 121 Matt Long, 997 Kelly Street, said he has a question about morale for the firefighters. While the city is 122 planning to recruit from current CFD personnel, he only knows of one person that is interested at this 123 time. That leaves him worried that the firefighters recruited for the new department will not have 124 enough experience. It would not be a good situation to have a new station with all new firefighters - 125 there must be some experience to rely on and he knows that because he is a firefighter. It would help 126 to get firefighters more involved in the discussion as it moves forward. The mayor concurred that 127 there is work to be done to get a department together and new station into shape; he is concerned that 128 misinformation will only hamper the situation. 129 130 Council Member Kusterman moved to accept the Fire Department Analysis as prepared by Springsted. 131 Council Member Roeser seconded the motion. Motion carried on a unanimous voice vote. 132 133 PUBLIC SAFETY DEPARTMENT REPORT, JOHN SWENSON 134 135 There was no report from the Public Safety Department. 3 COUNCIL MINUTES May 27, 2014 DRAFT 136 137 PUBLIC SERVICES DEPARTMENT REPORT, RICK DEGARDNER 138 139 There was no report from the Public Services Department. 140 141 COMMUNITY DEVELOPMENT DEPARTMENT REPORT, MICHAEL GROCHALA 142 143 6A) Resolution No. 14-44, Authorizing Preparation of Plans and Specifications for the 2014 144 Street Overlay Project — Community Development Director Grochala explained the request before 145 the council to prepare plans and specifications for the annual street overly program in the city. The 146 2014 program is being increased utilizing funds saved in previous years. He reviewed a map of the 147 projects planned in 2014, including over two miles of roadway. 148 149 Council Member Roeser moved to approve Resolution No. 14-44 as presented. Council Member 150 Kusterman seconded the motion. Motion carried on a unanimous voice vote. 151 152 6B) Resolution No. 14-45, Authorizing Preparation of Plans and Specifications for the 2014 153 Surface Water Management Project — Community Development Director Grochala explained the 154 request before the council to prepare plans and specifications for the annual surface water 155 management program in the city. This is a project done each year that consists of maintenance 156 activities on the city's storm water system. Included in this year's project is the correction of drainage 157 at the intersection of Linda and Laurene Avenue, as previously discussed by the council as part of the 158 Talan Ridge project. 159 160 Council Member Roeser moved to approve Resolution No. 14-45 as presented. Council Member 161 Kusterman seconded the motion. Motion carried on a unanimous voice vote. 162 163 UNFINISHED BUSINESS 164 165 There was no Unfinished Business. 166 167 NEW BUSINESS 168 169 There was no New Business. 170 171 COMMUNITY EVENTS 172 173 KITE DAY - FREE will be held at Rice Lake Elementary (east side soccer fields) Saturday, June 7, 174 from 10:30 am to 11:30 am. Each person who attends will receive a free kite until they are gone. 175 176 177 178 179 180 4 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 COUNCIL MINUTES DRAFT COMMUNITY CALENDAR May 27, 2014 Wednesday, May 28 14- Monday, June 2 Thursday, June 5 4- Monday, June 9 Community Calendar - A Look Ahead May 27, 2014 through June 9, 2014 6:30 pm, Council Chambers 5:30 pm, Community Room 8:00 am, Community Room 6:30 pm, Council Chambers Environmental Board Council Work Session EDAC City Council Meeting ADJOURN There being no further business, Council Member Roeser moved to adjourn at 7:20 p.m. Council Member Kusterman seconded the motion. Motion carried unanimously. These minutes were considered and approved at the regular Council Meeting, June 9, 2014. Julianne Bartell, City Clerk Jeff Reinert, Mayor 5 CITY COUNCIL AGENDA ITEM 1D STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 9, 2014 TOPIC: Resolution No. 14-46, Authorizing issuance of a Special Event Permit for the SMW Federal Credit Union VOTE REQUIRED: 3/5 INTRODUCTION City Code Chapter 615 are the City's regulations regarding special events. The purpose of these regulations is to ensure that public events in the City are conducted with sufficient consideration given to public safety issues and to understand the need for city services. The City charges a fee of $50 for special event permits. BACKGROUND The City has received an application from Victoria Hanson, VP of Sales & Marketing for SMW Federal Credit Union to hold a 60th Anniversary Celebration located on the property owned by SMW directly west of the their main building. The event is a free family fun day and is open to the public. The event will include a tent, magic show, Magic Bounce inflatables, hot dogs and non-alcoholic prepackaged drinks. SMW has submitted a plan indicating where the tent will be set up. The plan has been reviewed and approved by staff, including the police and fire department. RECOMMENDATION SMW's application for a special event permit meets the requirements of the city code and has not been found to present any safety concerns. Therefore, staff recommends that the council approve Resolution No. 14-46, Authorizing issuance of a Special Event Permit for SMW Federal Credit Union. CITY OF LINO LAKES RESOLUTION NO. 14-46 APPROVING A SPECIAL EVENT PERMIT FOR SMW FEDERAL CREDIT UNION WHEREAS, the VP of Sales & Marketing for the SMW has submitted an application for a special event permit; and WHEREAS, SMW wishes to conduct a 60th Anniversary Celebration on their lot directly west of SMW's building; and WHEREAS, the event would take place on June 21 from 11:00 a.m. to 3:00 p.m.; and WHEREAS, SMW has submitted plans to set up and conduct their event as well as adequate parking plans; and WHEREAS, city staff has reviewed the special event plans and have determined that they meet the requirements of the City's ordinances; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council hereby authorizes the issuance of a Special Event Permit to the SMW Federal Credit Union to be held Saturday, June 21, 2014. Adopted by the Council of the City of Lino Lakes this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk STAFF ORIGINATOR: MEETING DATE: TOPIC CITY COUNCIL AGENDA ITEM lE Lisa Hogstad-Osterhues, Deputy City Clerk June 9, 2014 Consider Resolution No. 14-55, Approving 2014-2015 Tobacco License Renewals VOTE REQUIRED: Simple Majority (3/5 Vote Required) INTRODUCTION All tobacco licenses in the City of Lino Lakes expire on June 30, 2014. Staff has been working with the license holders to put in place all renewal requirements to allow for Council consideration at this time. BACKGROUND Attached is a list of the establishments that have submitted renewal applications. As indicated, the applicants have completed the necessary documentation and paid the fee that is required for the license with exception of Eagle Liquor whose background is currently being processed. RECOMMENDATION Adopt Resolution 14-55, approving renewal of tobacco licenses for the period of July 1, 2014 through June 30, 2015. ATTACHMENTS Resolution 14-55 Exhibit A - 2014-15 Tobacco License Renewal List CITY OF LINO LAKES RESOLUTION NO. 14-55 Approving Renewal of Tobacco Licenses for the 2014/2015 Licensing Period WHEREAS, the licensing period for tobacco licenses in the City of Lino Lakes is one year, commencing on July 1 and ending on June 30 the following year; and WHEREAS, the City Council is required to approve the renewal of tobacco licenses; and WHEREAS, city staff has reviewed the renewal applications that have been submitted and verified that licensing requirements are met; and WHEREAS, the city has completed the required background investigations; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: The City of Lino Lakes hereby approves the renewal of tobacco licenses as set forth in Exhibit A that is attached to this resolution. Adopted by the Council of the City of Lino Lakes this 9th day of June 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ATTEST: Julianne Bartell, City Clerk and Jeff Reinert, Mayor EXHIBIT A TOBACCO Applicant License Type Lakes Liquor, Inc. 7860 Lake Drive (55014) Tobacco 1CLVZ Corporation (cff. 3/11} Tobacco d/b/a Eagle Liquor Pending 730 Apollo Drive, tt190 (55014) Spirit Hills Wine & Liquor, Inc. d/b/a Spirit Hills Wine & Liquor 6501 Ware Road (55014) Tobacco Holiday Stationstores d/b/a Holiday Stationstore #376 7509 Lake Drive (55014) MAIL TO: License Administrator, 4567 American Blvd W Bloomington, MN 55437-1123 Tobacco KRO, Inc. d/b/a Lino Lakes One Stop 6501 Ware Road, Suite 360 (55014) Tobacco Chomonix Golf Course 700 Aqua Lane (55014) Tobacco Fast Break 7601 Lake Drive (55014) Tobacco Round One Liquor 7997 Lake Drive, Suite 120 (55014) Tobacco TJ Lino Lakes d/b/a Corner Express Todd M. Steffen 7997 Lake Drive (55014) Tobacco G -Will d/b/a G -Will Liquors 8040 Lake Drive (55014) Tobacco EXHIBIT A TOBACCO Bill's Superette 8020 Lake Drive (55014) Tobacco SPECIAL JOINT COUNCIL MEETING DRAFT May 19, 2014 CITY OF LINO LAKES MINUTES SPECIAL JOINT SESSION OF THE CITY COUNCIL, PARK BOARD, ENVIRONMENTAL BOARD, PLANNING & ZONING BOARD & ECONOMIC DEVELOPMENT ADVISORY COMMITTEE DATE TIME STARTED TIME ENDED COUNCIL MEMBERS PRESENT : May 19, 2014 . 6:30 p.m. . 8:28 p.m. : Council Members Roeser, Rafferty, Stoesz and Mayor Reinert PLANNING AND ZONING PRESENT : Evans, Evenson, Hyden, Laden, Masonick, Root and Tralle ENVIRONMENTAL BOARD PRESENT : Andrzejewski, DeHaven, Heiskary, McDonnell, Morin PARK BOARD PRESENT EDAC PRESENT : Heulman, Jensen, Levi, Lindy : Glewwe, Johnson, Masonick, Vojtech, Wier Staff members present: Community Development Director Michael Grochala; Environmental Coordinator Marty Asleson; Public Services Director Rick DeGardner; City Clerk Julie Bartell CALL TO ORDER Mayor Reinert thanked everyone for coming to the meeting and asked all City Board Member's to introduce themselves. DISCUSSION OF COUNCIL INITIATIVES Community Development Director Grochala provided a review of projects currently underway in the city, including: Charter Amendments — The council has forwarded two amendments to Section 8 (Public Improvements and Special Assessments) to the Charter Commission and is awaiting their action; there will probably be an amendment on the ballot this fall; Street Reconstruction Plan — The city will be considering establishment of a plan for a street reconstruction program and bond financing as allowed under state statute; 109th and Apollo — A realignment of the roadway is being considered as a joint project with Blaine and Anoka County; Lake Drive Improvements - Improvements to the surface of the roadway in Circle Pines will be done; 1 SPECIAL JOINT COUNCIL MEETING May 19, 2014 DRAFT Otter Lake Road — Roadway improvements underway that will accommodate new commercial development (i.e. McDonalds) Lino Lakes Assisted Living — Construction of the additional facility is finishing up; Industrial Park — Expansion plans under consideration; New Housing — There are several developments either underway or being considered in concept; the new developments will generate park funding; Studies — A Local Water Management Plan is underway; Flood Plain Maps are being updated for FEMA; EDAC is working on updating the city's Economic Development Plan, identifying priorities and opportunities; Storm Water Erosion Control documents are being updated; Sign Ordinance — The Planning and Zoning Board is currently reviewing the city's regulations at the request of the city council; 49 and J — A master plan is in place to drive development discussions; Park Initiatives — The city is working with Anoka County on the Otter Lake Regional Trail Project as well as the Main Street pedestrian bridge over 35W and on extension of the trail past the bridge as far as Lino Lakes Elementary. Mayor Reinert noted that the city council regularly receives and utilizes advice from the city advisory boards on development in the city so he thought an update on development activities would be appropriate. Council Member Roeser noted that it's obvious as the council does interviews for advisory board positions that there is a lot of talent present on these groups. He thinks it creates good synergy when the groups and the council get together occasionally. The mayor noted the city -owned land at Birch and Centerville Road and that the council has discussed the idea of getting something going there. There is an old master plan in place. He thinks the council would love input from the boards on possibilities there. Public Services Director DeGardner noted that ideas for the land have arisen regularly over the years but budget has always been the issue; the concept of a phased plan has been discussed as a way to get things moving. Mr. DeGardner noted that the original master plan has many recreational elements. Paul Tralle noted that the north end of the city is lacking in trails and he'd like to see work in that area. The mayor suggested that he sees trails and the recreation area somewhat separate; he's committed to finishing the north loop of trails but also keeping the recreation area discussion going. Mr. Lindy noted that a relevant master plan for the recreation area would be appropriate since habits in the city may have changed since the old plan was put together. A question was raised about park dedication and other fees — is the city where it should be with those? Mr. Grochala promised that staff keeps an eye on fees, looking at them each year. A comment was added that sometimes the funding set aside for parks isn't enough to get the job done and the mayor responded that there is council discussion about that and with the awareness the necessary funding is more likely. Council Member Roeser added that he continues to support the concept of obtaining State Legacy funds when possible. Mr. DeGardner remarked that staff is always looking for grant funds and 2 SPECIAL JOINT COUNCIL MEETING May 19, 2014 DRAFT he agrees that leveraging funds together is a good financing concept. Mr. Masonick noted that businesses sometimes buy naming rights for facilities; that is a fund leveraging possibility. Council Member Roeser then noted the city's efforts to recycle cans from businesses as a funding source for the recreation facilities — that is an effort already underway. Mr. Tralle noted the Hammerheart Brewery as a real success story business in the city and the mayor said some thanks should go to Council Member Roeser because he called for the city to update its regulations so that a brewery would be possible. Michael Root remarked that the matter of sign regulations has been a long standing discussion for the Planning & Zoning Board. And especially in regard to regulations for temporary signs. Mayor Reinert replied that the current regulations limit temporary signs to four times per year and a total number of days. The council has heard that the regulations aren't quite right since the signage seems to be needed seasonally. Therefore the council is asking the P&Z Board to take another look at the regulations with that in mind P&Z Chair Tralle said the Board will tackle the issue again but he'd like a promise that that the council won't send it back again for at least two years so that things at least have a chance to work. Mayor Reinert noted that communication is important and he wants board members to feel free to contact the city council with any questions or concerns. ADJOURN There being no further business to discuss, the meeting was adjourned at 8:28 p.m. These minutes were considered, corrected and approved at the regular Council meeting held on June 9, 2014. City Clerk, Julianne Bartell Jeff Reinert, Mayor 3 STAFF ORIGINATOR: MEETING DATE: TOPIC: CITY COUNCIL AGENDA ITEM 1G Lisa Hogstad-Osterhues, Deputy City Clerk June 09, 2014 Resolution No. 14-56, Approving the Renewal of Liquor, Wine, Beer and Dance Licenses VOTE REQUIRED: 3/5 BACKGROUND All liquor, wine, beer (3.2) and dance licenses in the City of Lino Lakes expire on June 30, 2014. Staff has been working with license holders on meeting the requirements for renewal so as to allow the council to consider approval at this time. A majority of these licenses require additional approval by the Minnesota Department of Public Safety Alcohol and Gambling Division and they will be forwarded to the state if local approval is granted. Attached is a list of the establishments that have submitted renewal applications. Under city policy, applicants applying for license renewal are required to undergo a background investigation each year. The Lino Lakes Police Department performs the investigation and reports any information that would make applicants ineligible for license renewal. All backgrounds were clear for renewal with exception of Eagle Liquor whose background is currently being processed. Licensees are also required to submit verification of liquor liability and workers' compensation insurance as well as pay appropriate fees. No license will be released until all requirements are met. The city code requires that when the city council considers the issuance of a liquor license, opportunity shall be given to any person to be heard for or against the granting of the license. RECOMMENDATION Adopt Resolution 14-56 approving renewal of liquor, wine, beer and dance licenses for the period of July 1, 2014 through June 30, 2015. ATTACHMENTS Resolution 14-56 Exhibit A - 2014-15 Liquor, Wine, Beer and Dance License Renewal List CITY OF LINO LAKES RESOLUTION NO. 14-56 Approving the Renewal of Liquor, Wine, Beer and Dance licenses for the 2014/2015 licensing period WHEREAS, the licensing period for liquor, wine, beer and dance licenses in the City of Lino Lakes is one year, commencing on July 1 and ending on June 30 the following year; WHEREAS, the City Council is required to approve the renewal of liquor and wine licenses, in some cases, prior to State issuance of a license; WHEREAS, City staff has reviewed the renewal applications that have been submitted and verified that local licensing regulations are met; WHERAS, the Lino Lakes Police Department has conducted the required background investigations for license renewals; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: The City of Lino Lakes hereby approves the renewal of liquor, wine, beer and dance licenses as set forth in Exhibit A that is hereby attached, with said approval contingent upon applicants meeting all city and state requirements for said licenses. Adopted by the Council of the City of Lino Lakes this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk EXHIBIT A LIQUOR, WINE, BEER AND DANCE Applicant License Type American Legion Post 566 7731 Lake Drive (55014) Charles Lundgren Paul Howard On Sale Club Sunday Dough Joes Pizza d/b/a AJP Corporation 6511 Ware Road #100 Lino Lakes, MN 55014 3.2 On -Sale On Sale Wine Sunday ILVZ Corporation Off Salo d/b/a Eagle Liquor PENDING 730 Apollo Dr, 11190 (55014) Stanislav Sidorcnko Lakes Liquor, Inc. d/b/a Lakes Liquor, Inc. 7860 Lake Drive (55014) Adam & Tearinie LaMere Off Sale C.A. Wagner, Inc. **d/b/a The Tavern on Main 8001 Lake Drive (55014) Chad Wagner Off Sale On Sale Sunday *2 a.m. Spirit Hills Wine & Liquor, Inc. d/b/a Spirit Hills Wine & Liquor 6501 Ware Road (55014) Timothy Goertz Off Sale Trapper's Bar & Grill, LLC d/b/a Trapper's 6810 Lake Drive (55014) Jeff Moore Off Sale On Sale Sunday Dance *2 a.m. Round One Liquor Round One Liquor Corporation 7997 Lake Dr, Suite 120 (55014) Michael T. Walmar Off Sale Anoka County Parks Chomonix Golf Course 700 Aqua Lane (55014) Cori Hinz (Golf & Aquatics Manager at Anoka County) On Sale Sunday Target Corporation Store T-1448 749 Apollo Drive (55014) Patricia Johnson, VP 3.2 Off Sale Hammerheart, LLC d/b/a:Hammerheart Brewing Co. 7785 Lake Drive (55014) On -Sale Brewer Taproom Room and Off -Sale Growler EXHIBIT A LIQUOR, WINE, BEER AND DANCE Metro Wine & Spirits, LLC 6013 Hodgson Rd (55014) Off Sale Cherokee Liquors, Inc. d/b/a G -Will Liquors 8040 Lake Drive (55014) Off -Sale Bill's Superette 8020 Lake Drive (55014) 3.2 Off Sale CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR Al Rolek MEETING DATE June 9, 2014 TOPIC Accept 2013 Annual Audit Report VOTE REQUIRED Simple Majority (3/5) BACKGROUND Rachel Flanders and Chris Knopik of CliftonLarsonAllen, LLC will be in attendance at the meeting to provide a brief overview of the City's 2013 Annual Financial Report, present the auditor's management analysis and answer any questions you may have with regard to the financial condition of the City. The 2013 annual audit was undertaken earlier this year, with field work being completed in April. The auditors review all financial transactions and the financial reports of the City over the previous year for their fairness in presentation and for full disclosure of all material aspects of the City's financial condition. This review is conducted in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in U.S. Government Auditing Standards, issued by the Comptroller General of the United States. The auditors concluded that the City's financial statements for 2013 presented fairly, in all material respects, the financial position of the City as of December 31, 2013. The auditors also issue their reports on the City's legal compliance with certain laws, regulations, contracts, etc., our internal control structure, and management issues. It should be noted that the City has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada for its 2012 Comprehensive Annual Financial Report. The city has received this award each year since 1995. We believe that the report issued for 2013 continues to uphold the high standards of reporting excellence that this prestigious award represents. Following the presentation by Ms. Flanders and Mr. Knopik, staff recommends that the City Council formally, by motion, accept the 2013 Annual Audit Report. RECOMMENDATION Approve a motion accepting the 2013 Annual Audit Report. ATTACHMENTS 2013 Comprehensive Annual Financial Report 2013 Other Audit Reports L J J J cJ J 0 O U City of Lino Lakes, Minnesota December 31, 2013 Auditor Communications to the City Council CliftonLarsonAllen CLAconnect.com Rachel Flanders, Principal Chris Knopik, Manager Agenda • Auditors' Reports • Financial Results • Other Items CliftonLarsonAllen ©2014 CliftonLarsonAllen LLP 2 Audit Results • Unmodified (i.e. "clean") opinion on the financial statements • One passed adjustment • Internal controls — no material weaknesses noted for 2013 • Minnesota legal compliance — no exceptions noted • New accounting standards for 2013 — GASB 65 and 66 CliftonLarsonAllen ©2014 CliftonLarsonAllen LLP 3 Financial Results $10,000,000 $9,500,000 $9,000,000 $8,500,000 $8,000,000 $7,500,000 $7,000,000 $6,500,000 $6,000,000 $5,500,000 $5,000,000 General Fund Revenues & Expenditures/Transfers Out j 1 1 1 ■ Imi il IC 2008 2009 2010 2011 2012 2013 ■ Revenues ■ Expenditures/Transfers Out CliftonLarsonAllen ©2014 CliftonLarsonAllen LLP 4 Financial Results (continued) $5,500,000 $5,400,000 $5,300,000 $5,200,000 $5,100,000 $5,000,000 $4,900,000 $4,800,000 Unreserved / Unassigned Fund Balance - General Fund 2007 2008 2009 2010 2011 2012 2013 Unreserved/Unassigned Fund Balance —% of Annual Expenditures/Transfers Out 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% CliftonLarsonAllen ©2014 CliftonLarsonAllen LLP 5 Other Items • GFOA Certificate of Achievement for Excellence in Financial Reporting — Received for 2012 — 17th consecutive year • New Accounting Requirements — GASB No. 68: Participants in Multi -Employer Pension Plans - 2015 CliftonLarsonAllen ©2014 CliftonLarsonAllen LLP 6 Questions and Comments Thank you! Rachel Flanders, Principal Ph. 612/397-3027 rachel.flanders@cliaconnect.com Chris Knopik, Manager Ph. 612/397-3266 christopher.knopik@claconnect.com CliftonLarsonAllen ©2014 CliftonLarsonAllen LLP 7 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 Prepared By: Finance Department Alan Rolek, Director of Finance Paula Schloer, Accountant CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number I. INTRODUCTORY SECTION Principal City Officials 1 Organizational Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 8 II. FINANCIAL SECTION Independent Auditors' Report 9 Management's Discussion and Analysis 12 Basic Financial Statements Statement of Net Position Statement 1 22 Statement of Activities Statement 2 23 Balance Sheet - Governmental Funds Statement 3 25 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement 4 27 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds Statement 5 28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities Statement 6 30 Statement of Net Position - Proprietary Funds Statement 7 31 Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds Statement 8 32 Statement of Cash Flows - Proprietary Funds Statement 9 33 Statement of Net Position - Fiduciary Funds — Agency Funds Statement 10 34 Notes to Financial Statements 35 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Required Supplementary Information General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Note to Required Supplementary Information Schedule of Funding Progress for Postemployment Benefit Plan Combining Fund Financial Statements Combining Balance Sheet — Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor Governmental Funds Special Revenue Fund — Program Recreation: Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Statement of Changes in Assets and Liabilities — Fiduciary Funds — Agency Funds Supplementary Financial and Other Information Combined Schedule of Indebtedness Schedule of Deferred Tax Levies Debt Service Payments to Maturity - All Bonds Insurance in Force Taxable Valuations, Tax Levies and Tax Rates III. STATISTICAL SECTION Net Position by Component — Last Ten Fiscal Years Changes in Net Position - Last Ten Fiscal Years Fund Balances, Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years Assessed and Actual Value of Taxable Property - Last Ten Fiscal Years Page Reference Number Statement 11 60 66 Statement 12 67 Statement 13 68 Statement 14 74 Statement 15 80 Statement 16 81 Exhibit 1 82 Exhibit 2 84 Exhibit 3 86 Exhibit 4 89 Exhibit 5 90 Table 1 91 Table 2 92 Table 3 94 Table 4 96 Table 5 98 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Table 6 99 Principal Property Taxpayers Table 7 100 Property Tax Levies and Collections — Last Ten Fiscal Years Table 8 101 Ratios of Outstanding Debt by Type Table 9 103 Direct and Overlapping Governmental Activities Debt Table 10 105 Legal Debt Margin Information Table 11 106 Demographic and Economic Statistics Table 12 108 Principal Employers, Current Year and Nine Years Ago Table 13 109 Full -Time Equivalent Employees by Type Table 14 110 Operating Indicators by Function/Program Table 15 112 Capital Asset Statistics by Function/Program Table 16 114 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2013 Elected Officials Term Expires Mayor: Jeff Reinert December 31, 2013 Council Members: Dale Stoesz December 31, 2015 Rob Rafferty December 31, 2013 Jeff O'Donnell December 31, 2013 Dave Roeser December 31, 2015 Appointed Personnel City Administrator Jeff Karlson Director of Finance Alan Rolek Director of Public Safety John Swenson Director of Community Development Michael Grochala Director of Public Service Rick DeGardner 1 City of Lino Lakes Organizational Chart Citizens Honorable Mayor and City Council Commissions Cable Parks and Recreation Economic Development Planning and Zoning Fire Environmental City Administrator City Clerk Professional Consultants Engineering Attorney Fiscal Public Services Public Safety Parks Public Works Recreation Administration Police Emergency Management Community Development Human Resources Administrative Services 2 1 Finance Planning Economic Development Engineering Environmental Services Inspections Accounting Management Information Systems Utility Billing May 28, 2014 Honorable Mayor Members of the City Council Citizens of the City of Lino Lakes, Minnesota Minnesota State law requires that cities over 2,500 population publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended December 31, 2013. This report consists of management's representations concerning the finances of the City of Lino Lakes. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Lino Lakes' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Lino Lakes' financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended December 31, 2013, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino Lakes' MD&A can be found immediately following the report of the independent auditors. 3 Profile of the Government The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County of Anoka. It covers an area of 33 square miles and has a population of approximately 20,700. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 23% since 2000. Within the City's borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is provided by I -35W and I -35E. The City Charter, as amended, establishes a mayor -council form of government and grants the city council full policy-making and legislative authority to the mayor and four council members. The City council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a City administrator. The City administrator has the responsibility of carrying out the policies and ordinances of the City council, for overseeing the day-to-day operation of the city. The City council is elected at -large on a non-partisan basis, with council members serving four-year terms and the mayor serving a two-year term. Elections are held every two years with two council seats and the mayor being up for election each election cycle. The City provides a full range of municipal services. These services include: general government, public safety (police and fire), public works (streets and fleet), parks and recreation, conservation of natural resources (environmental and solid waste abatement), public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two enterprise funds, the water and sewer funds. The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are required to submit appropriations requests to the City administrator for review and consolidation into a proposed budget. The City administrator is responsible for submitting the proposed annual budget to the City Council in August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make transfers of appropriations within a department, but transfers of appropriations between departments require council approval. Budget -to -actual comparisons for the general fund and the recreation program fund, the only funds for which an annual budget has been adopted, are provided in this report beginning on pages 60 and 80, respectively. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Lino Lakes operates. Local economy. The economic development effort established by the City Council in 1993 increased the commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007 the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive interchange, was developing at a rapid pace. SuperTarget and Kohl's anchor the shopping center quadrant, while Apollo Business Park brought approximately 1,000 new employees to the area. Land was purchased by Anoka County on a third quadrant for future development of a regional library. Due to economic conditions, the County has pushed back construction of the library to 2015. 4 Factors Affecting Financial Condition (Continued) In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast quadrant of I -35W and Lake Drive. Called Legacy at Woods Edge, this mixed-use development is intended to include diverse opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a 60 -unit workforce housing project, 13,000 square feet of leasable commercial space, and an assisted living facility. The Civic Complex and YMCA provide a civic and community focus as part of the vision for Town Center. A workforce family housing and assisted living facility provide diversity in housing to underserved populations within the City. In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion of public improvements in Legacy at Woods Edge to accommodate planned development and completed the improvements by 2008. However, it became evident at the end of 2007 that development was stalling. The recession has had negative impacts on the Legacy development. Both the master developer and lender defaulted, sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit. Development conditions have begun to improve relative to the Legacy property. During 2013, the assisted living facility purchased an adjoining parcel to expand its current operation. The 36 -room addition is scheduled to begin occupancy in early 2014. In addition, the State Legislature approved City -initiated special legislation which has allowed the City to acquire the tax forfeited property from the State at no cost except for an administrative fee payable to Anoka County if future sale revenues exceed to value of the special assessments on the property. The acquisition of this property will allow the City greater control in marketing the property to potential developers. The solid foundation that was built and strong interest by developers prior to the recession ensures that better economic times will once again bring the interest in residential and commercial growth needed to complete the vision. Street, streetscape, water, sewer, and storm water improvements, as well as a small community park, have been installed within the development area and assessed to the development. This $11 1 million improvement was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to finance its portion of the project cost. Once construction gains its footing again the City can assess the benefitting properties. The City continues to look for ways to resurrect the project and strives to be prepared to market the property when the economy recovers. Building activity and development continued to be soft in 2013, however, improvement in developer activity is evident. Building petiiiits for new homes in 2013 numbered 30, compared to 25 in 2012. In addition, 5 permits for new commercial were issued in 2013, compared to 0 in 2012. In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011. With both major interstate interchanges complete, the City is preparing for development of several hundred acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension of Otter Lake Road North east of I -35E and planning for the extension of 21st Avenue west of I -35E, which will leave the City well poised to accommodate significant future industrial, commercial and residential development. Already the development of a McDonald's restaurant is underway at CSAH 14 and Otter Lake Road. In addition, Metropolitan Transit has received approval to develop a Park and Ride at I35 -E at CSAH 14 and 21' Avenue. 5 Factors Affecting Financial Condition (Continued) Long-term financial planning. The City's currently adopted five-year financial plan identifies street and utility improvements totaling $23,287,990 over the five-year period. These improvements are anticipated to be funded through a number of funding sources, including special assessments, municipal state aid road funds, the area and unit trunk fund, the stormwater management fund and voter -approved tax levies. Also included in the final year of the plan is a feasibility study for a new public works facility. Scheduled capital equipment and office equipment needs and the financing for those needs are also included in the plan. The five-year plan also includes funding projections for operations and operating impacts for the five-year period. This plan is in the process of being revised to reflect the anticipated activity through the year 2018. Relevant Financial Policies The City uses a variety of financial policies to guide its fiscal actions and ensure fiscal stability. Fund balance policy. The City had adopted a Fund Balance policy which identified the required designated amounts in the Fund Balance of the General Fund at fiscal year-end and directed the transfer of any excess revenues to other funds for specific purposes, as identified annually. For the year ended December 31, 2011 and subsequent years, the City amended its Fund Balance policy to conform to the requirements of GASB 54. The new policy targets the unassigned fund balance of the general fund in a range of 40% to 50% of budgeted general fund expenditures and other financial uses. In addition, fund balances are classified in compliance with GASB 54 according to the hierarchy of usable fund balance resources. The unassigned general fund balance as of December 31, 2013 was $5,209,286, which is 61% of general fund budgeted expenditures and other financing uses for the year. Cash management policies and practices. The City's policy is to invest all available moneys at competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S. government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the investment policy annually. The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either insured by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened economy, a historically low interest rate environment has persisted over the last several years and has had a dramatic impact on the city's investment earnings. The average interest income yield on investments for 2013 was 1.07%. Total investment income also includes positive or negative changes in the fair value of investments. Changes in fair value of investments during the current year resulted in unrealized losses of $428,867, or -1.39%, for a total investement yield of -0.32%. The changes in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments the City intends to hold to maturity. It is the City's practice to purchase and hold investments to maturity and, accordingly, changes in fair value over the term of the City's investments are expected to net to book value. 6 Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. The City of Lino Lakes received this award for its comprehensive annual financial report for the year ended December 31, 2012. This marks the seventeenth consecutive year the City has received this prestigious award. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2013 report to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our current report continues to conform to the high standards of the Certificate program. The timely preparation of this report could not have been accomplished without the dedicated services of the Finance Depaitinent, auditors and other city staff. A special thank you goes to city accountant, Paula Schloer, for her efforts in assembling and reviewing information presented in this report. I also want to express my appreciation to the Mayor and City Council for their support for maintaining the highest standard of professionalism in the management of the financial operation of the City. Respectfully submitted, Alan J. Rolek Director of Finance 7 Government Finance Officers Association Certificate of Achievement for 7xcelle! ,ce in�7in•Enca e Itouting Presented to City of Lino Lakes Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2012 Executive Director/CEO 8 II. FINANCIAL SECTION CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota CliftonLarsonAllen LLP CLAconnect.com Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. NEXIA INTERNATIONAL An independent nenber of Nexia International 9 Honorable Mayor and Members of the City Council City of Lino Lakes Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes as of December 31, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and schedule of funding progress to postemployment benefit plan, as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lino Lakes' basic financial statements. The combining fund financial statements and other supplementary financial and other information, the introductory section, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund statements, the combining schedule of indebtedness, and the debt service payments to maturity — all bonds schedule are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining fund statements, the combining schedule of indebtedness, and the debt service payments to maturity — all bonds schedule are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, schedule of deferred tax levies, schedule of insurance in force, schedule of taxable valuations, tax levies, and tax rates, and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 10 Honorable Mayor and Members of the City Council City of Lino Lakes Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 28, 2014, on our consideration of the City of Lino Lakes' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Lino Lakes' internal control over financial reporting and compliance. CliftonLarsonAllen LLP Minneapolis, Minnesota May 28, 2014 11 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the fiscal year ended December 31, 2013. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-7 of this report. FINANCIAL HIGHLIGHTS The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year by $91,513,956 (net position). Of this amount $29,848,818 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City's total net position decreased by $786,644 primarily due to annual depreciation of capital assets and the use of municipal state aid funds that were advanced during 2012 for infrastructure construction. As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balance of $21,577,573, an increase of $53,472 in comparison with the prior year primarily due to the prepayment of special assessments for the 135-E/CSAH 14 interchange (Improvement Note 2009F). Approximately 8% of this amount, or $1,815,739, is available for spending at the City's discretion (unassigned fund balance). At the end of the current fiscal year, unassigned fund balance for the general fund was $5,209,286, or 61 % of total general fund expenditures and other financing uses. The City's total bonded debt decreased by $1,841,000 (8.7%) during the current fiscal period. The City issued 2013A Equipment Certificates of $193,000 and a general obligation bond in the amount $615,000 to finance the Otter Lake Road Extension project. Principal in the amount of $2,649,000 was retired during the year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic financial statements. The City of Lino Lakes' basic financial statements comprise three components: 1. Government -wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also contains other supplementary 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 City of Lino Lakes' finances, in a manner similar to private - sector business. The statement of net position presents information on all of the City of Lino Lakes' assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Lino Lakes is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences and OPEB liabilities). 12 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Government -wide financial statements (Continued) Both of the government -wide financial statements distinguish functions of the City of Lino Lakes that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Lino Lakes include general government, public safety, public services, parks, recreation and forestry, conservation of natural resources and community development. The business -type activities of the City of Lino Lakes include a water utility and sewer utility. The government -wide financial statements can be found on pages 22-24 of this report. 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 City of Lino Lakes, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Lino Lakes can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds 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 government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental functions and governmental activities. The City of Lino Lakes maintains forty individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund, Improvement Note 2009F fund, Municipal State Aid fund and Area and Unit Charge fund all of which are considered to be major funds. Data from the other thirty-four governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation special revenue funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 25 through 30 of this report. Proprietary funds — The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities. The proprietary fund statements provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The basic proprietary fund financial statements can be found on pages 31 through 33 of this report. 13 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. 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 35-59 of this report. Other information — The combining statements and schedules referred to earlier in conjunction with nonmajor governmental funds can be found on pages 68-81 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City of Lino Lakes' assets exceeded liabilities by $91,513,956 at the close of the most recent fiscal year, an decrease of $786,644 from the previous year. This decrease is primarily due annual depreciation of capital assets and the use of municipal state aid that was advanced to the City during 2012. By far the largest portion of the City of Lino Lakes' net position (55%) reflects its net investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Condensed versions of the statements of net position at December 31, 2013 and 2012 are as follows: Current and Other Assets Capital Assets Total Assets Noncurrent Liabilities Outstanding Other Liabilities Total Liabilities Net Position: Net Investment in Capital Assets Restricted Unrestricted Total Net Position Governmental Activities Business -Type Activities Total 2013 2012 2013 2012 2013 2012 $ 33,326,625 $ 34,456,692 $ 13,092,332 $ 12,194,619 $ 46,418,957 $ 46,651,311 37,854,973 39,634,563 28,423,284 28,798,095 66,278,257 68,432,658 71,181,598 74,091,255 41,515,616 40,992,714 112,697,214 115,083,969 20,006,657 21,875,614 54,182 43,410 20,060,839 21,919,024 1,083,451 815,149 38,968 49,196 1,122,419 864,345 21,090,108 22,690,763 93,150 92,606 21,183,258 22,783,369 22,241,821 11,000, 033 16,849,636 22,166, 342 11,595,112 17,639,038 28,423,284 28,798,095 12,999,182 12,102, 013 50, 665,105 11, 000, 033 29,848,818 50,964,437 11, 595,112 29,741,051 $ 50,091,490 $ 51,400,492 $ 41,422,466 $ 40,900,108 $ 91,513,956 $ 92,300,600 Of the remaining balance of the City of Lino Lakes' net position, restricted net position (12%) are to be used for debt service requirements and a nonexpendable environmental fund. Unrestricted net position (33%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental activities Governmental activities decreased the City of Lino Lakes' net position by $1,309,002. Reductions in Capital Grants and Contributions and in the fair value of investments, interest on long-term debt service and property tax delinquencies account for this reduction for 2013. Business -type activities Business -type activities increased the City of Lino Lakes' net position by $522,358. Revenue from Charges for Services and transfers in provided directly for this increase. Condensed statements of revenues, expenses, and changes in net position highlights are as follows for the years ended December 31, 2013 and 2012: REVENUES Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Property Taxes Franchise Taxes Other Taxes Contributions Not Restricted to Specific Programs Unrestricted Investment Earnings Change in Market Value Gain on Disposal of Capital Assets Total Revenues EXPENSES General Government Public Safety Public Service Parks, Recreation and Forestry Conservation of Natural Resources Community Development Interest on Long -Term Debt Water Sewer Total Expenses Governmental Activities Business -Type Activities Total 2013 2012 2013 2012 2013 2012 $ 1,452,169 $ 1,476,261 $ 2,725,139 $ 2,877,590 $ 4,177,308 $ 4,353,851 527,368 450,179 - 527,368 450,179 941,960 5,125,693 883 20,018 942,843 5,145,711 8,392,601 8,461,621 109,438 95,003 61,556 54,085 4,442 4,941 216,488 202,828 (270,692) - 4,175 11,435, 330 15,874,786 1,566,388 1,883,961 3,950,197 4,046,415 4,540,888 5,584,283 835,783 1,210,867 141,204 184,051 404,726 430,121 951,842 837,755 12, 391, 028 14,177,453 8,392,601 8,461,621 109,438 95,003 61,556 54,085 - 4,442 4,941 113,402 102,073 329,890 304,901 (158,175) - (428,867) - - 4,175 2,681,249 2,999,681 14,116,579 18,874,467 927,800 949,121 1,584,395 1,527,637 2,512,195 2,476,758 1,566,388 1,883,961 3,950,197 4,046,415 4,540,888 5,584,283 835,783 1,210,867 141,204 184,051 404,726 430,121 951,842 837,755 927,800 949,121 1,584,395 1,527,637 14,903,223 16, 654, 211 CHANGE IN NET POSITION BEFORE TRANSFERS (955,698) 1,697,333 169,054 522,923 (786,644) 2,220,256 Transfers (353,304) 41,043 353,304 (41,043) - - CHANGE IN NET POSITION (1,309,002) 1,738,376 522,358 481,880 (786,644) 2,220,256 Net Position - Beginning of Year 51,400,492 49,662,116 40,900,108 40,418,228 92,300,600 90,080,344 NET POSITION - END OF YEAR $ 50,091,490 $ 51,400,492 $ 41,422,466 $ 40,900,108 $ 91,513,956 $ 92,300,600 15 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Below are specific graphs that provide comparisons of the government activities' direct program revenues with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or general state aid. Expenses and Program Revenues — Governmental Activities $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- L LL ■ en\ Jeoroo` e\a\ go Geo` J�\\Ga\eoi\\Gse�\Ge or ata\otee\ t\2-eoo`ce\ eoteav o\�\a\ ���r�� Pao\�s t eta\Nor Go Goo` Revenues by Source — Governmental Activities reo`\eb\ 6e'le\o9 \or9 e\\ a \r\e ■ Expenses ■ Revenues Unrestricted grants and contributions 0% Franchise taxes 1% Property taxes 73% Unrestricted investment earnings 0% / Other 0% Charges for services 13% Operating grants _and contributions 5% Capital grants and contributions 8% 16 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Below are specific graphs that provide comparisons of the business -type activities' direct program revenues with their expenditures. Excess revenues are retained within each fund until such time that capital replacement is needed. Expenses and Program Revenues — Business -type Activities $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Water Revenues by Source — Business -type Activities Capital grants and contributions Operating grants and 0% contributions 0% Sewer Other 5% Charges for services 95% 17 o Expenses ■ Revenues CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds — The focus of the City of Lino Lakes' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lino Lakes' financing requirements. GASB Statement 54, divides fund balances into five categories: nonspendable, restricted, committed, assigned and unassigned. Definitions of these categories can be found in Note 1.0 in the Notes to the Financial Statements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for unrestricted spending at the end of the fiscal year. Approximately 8% of the total fund balance amount, or $1,815,739, constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is not available for new spending because it is restricted or has already been committed or assigned for other purposes. As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balances of $21,577,573, an increase of $53,472, or 0.2%, from the previous year. This increase is primarily due to the receipt of special assessment prepayments for the Improvement Note 2009F fund. The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal year, unassigned fund balance of the general fund stood at $5,209,286, while the total fund balance was $5,386,083. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund balance and total fund balance to total fund expenditures and financing uses. Unassigned fund balance represents 61% of total general fund expenditures and financing uses, while total fund balance represents 63% of that same amount. The fund balance of the City of Lino Lakes' general fund increased by $152,266 during the current fiscal year, while the city budget anticipated the use of up to $129,947 of the general fund balance. Overall, the continued soft real estate market again resulted in reduced building activities this year which decreased permit revenue. Even as signs of economic recovery were being seen, the remaining effects of the recession also had an impact on property tax delinquencies. In addition, reduced expenditures, primarily for personal services through vacant positions, and contractual services helped to offset the reduced revenues. Overall, the general fund's revenues were within approximately 2% of the amended budget, while expenditures and transfers were 4% below budgeted levels. The G.O. improvement bonds 2005A fund has a total fund deficit of ($2,101,738). This fund is related to the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and delinquency in the collection of special assessments dedicated to this issue caused a significant decrease in this fund. An interfund loan from the Capital Improvements fund has aided in the payment of debt service for this issue. The Improvement Note 2009F fund, to service the debt issued to Anoka County as the City's financial commitment for the I -35E interchange project, ended the year with a fund balance of $996,291, an increase of $995,800. The increase was directly due to the prepayment of a special assessment in 2013 for this project. This note, which was originally in the amount of $4,260,000, was reduced in 2011 to the current amount of $3,695,000 to reflect cost savings during the contruction of this project. The Municipal State Aid fund, a capital projects fund used to finance reconstruction of state aid eligible streets, ended the year with a fund balance of $4,595,797. This fund received a large advance from the Minnesota Municipal State Aid in 2012 equal to the next five annual construction installments. These funds will be used over the next several years to pay debt service on the Tax Increment Bonds 2007A and the Improvement Notes 2009F, and for future MSA projects. The area and unit charge fund has a total fund balance of $4,170,051, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $197,335, due in large part to the partial repayment of an interfund loan from the Dedicated Parks fund. 18 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The water fund has total net position at year-end of $18,833,063, of which $4,972,620 is unrestricted. The increase in net position of $519,918 was primarily due to operating income and capital contributions from governmental activities. Total net position in the sewer fund at the end of 2013 was $22,589,403, of which $8,026,562 was unrestricted. The increase in net position of $2,440 was primarily due to capital contributions from governmental activities. The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates were unchanged in 2013. A review of utility rates was completed in 2013. A 2% adjustment of water rates and 4% adjustment of sewer rates will go into effect in January, 2014. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting increases licences and permits, public safety charges for services, MSA maintenance aid and police aid; reductions in property tax revenue, fines revenue, interest earnings and other miscellaneous revenues; and reallocating resources within the original budget. The final amended budget is $36,000 less than the original adopted budget. Revenues were $64,908 under budget for the year. This is due primarily due to change in market value of investments which is not budgeted for and accounted for $50,343 of this variance, tax collections also came in under budget by $88,321. These two larger variances were offset by greater than anticipating planning and engineering fees and licenses due to increased construction activity and greater than anticipated public safety charges for services due to higher than anticipated traffic control contracts. Expenditures came in under budget by $337,910 due mainly to lower than expected personal services costs from vacant positions and unspent contingency budgets. Energy costs for fuels and electricity were higher than budgeted amounts, and supplies costs were generally lower than anticipated. Spending on contractual services was lower overall from budgeted levels. The contingency budget of $147,975 was unspent for the year, contributing 44% of the expenditure variance. There were also net transfers from the general fund of $565,789. This resulted in a net fund balance increase of $152,266 for the fiscal year, compared to the planned reduction of $129,947. 19 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business - type activities as of December 31, 2013, is $66,278,257. This investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino Lakes' investment in capital assets of approximately 3.1%. The extension of Otter Lake Road north of CSAH 14 was completed during the year by the City, adding to road and utility infrastructure. The only additions were from projects in progress. The decrease within the governmental activities is attributable to the depreciation of buildings, constructed streets, underground infrastructure and vehicles. Within the business -type activities decreases were also attributable to depreciation of existing assets of the water and sewer funds. Capital Assets at Year -End (Net of Accumulated Depreciation) Governmental Activities Business -Type Activities Total 2013 2012 2013 2012 2013 2012 Land $ 3,275,859 $ 3,275,859 $ $ $ 3,275,859 $ 3,275,859 Buildings 3,301,916 3,324,186 3,301,916 3,324,186 Office Equipment and Furniture 407,616 450,739 407,616 450,739 Vehicles 1,064,565 1,148,061 - - 1,064,565 1,148,061 Machinery and Shop Equipment 340,245 392,625 232,927 195,903 573,172 588,528 Other Equipment 182,700 205,040 182,700 205,040 Infrastructure 29,282,072 30,838,053 28,190,357 28,602,192 57,472,429 59,440,245 Capital Assets, Net $ 37,854,973 $ 39,634,563 $ 28,423,284 $ 28,798,095 $ 66,278,257 $ 68,432,658 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 46-47. Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $15,585,000. Of this amount $9,865,000 comprises tax supported debt and $5,720,000 is special assessment debt. All outstanding debt carries the general obligation backing for which the City is liable in the event of default by the property owners subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its share of the cost of the I-35E/County Road 14 Interchange project in the amount of $3,695,000. Outstanding Debt at Year -End Governmental Activities Business -Type Activities Total 2013 2012 2013 2012 2013 2012 G.O. Bonds $ 9,865,000 $ 10,646,000 $ - $ - $ 9,865,000 $ 10,646,000 G.O. Special Assessment Bonds 5,720,000 6,780,000 - - 5,720,000 6,780,000 Note Payable - Anoka County 3,695,000 3,695,000 - 3,695,000 3,695,000 Total Outstanding Debt $ 19,280,000 $ 21,121,000 $ - $ $ 19,280,000 $ 21,121,000 The City of Lino Lakes' total bonded debt decreased by $1,841,000 (10.6%) during the current fiscal year. The key factors for the change include the issuance of $193,000 in 2013A Equipment Certificates and the issuance of a general obligation bond in the amount $615,000 to finance the extension of Otter Lake Road. Principal in the amount of $2,649,000 was retired during the year. Additional information on the City's long-term debt can be found in the notes to the financial statements on pages 48-50. 20 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The unemployment rate for the City of Lino Lakes at year-end is 4.5%, which is a great improvement from a rate of 5.6% a year ago. This is slightly lower than the state's average unemployment rate of 4.6% and significantly lower than the national average of 6.5% at the end of 2013. Residential growth in the City has continued to be significantly below the rates of the mid 2000's due to the general residential real estate market weakness, with about one-third the number of new home permits issued in 2013 as in 2007, and less than 84% of new home permits issued in 2005. This is an improvement over recent years. Recently increased building and development activities are signalling the beginning of a recovery of the housing market. Property values of the existing tax base are expected to firm will continue to have an impact on the City's tax base for 2014. Energy costs are expected to continue to increase over the coming months. This will have an impact on the City's budget for the coming year and thereafter. Property tax reforms and State budget deficits have significantly impacted state aid payments the City of Lino Lakes receives. Local government aid and market value homestead credit was reduced to zero for 2003 and 2004-2011. The City is exempted from local government aid and the state legislature has discontinued the market value homestead credit in favor of a new market value exclusion, which excludes a portion of residential homestead property value from property taxes. The Federal Reserve Board has continued the federal funds rates at historical lows, currently to between 0.00% — 0.25%, which is expected to result in sizable decreases in the City's investment earnings. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014. 21 BASIC FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION December 31, 2013 Statement 1 Governmental Business -type Activities Activities Total ASSETS Cash and investments $ 22,028,036 $ 12,077,789 $ 34,105,825 Accrued interest receivable 71,531 71,531 Accounts receivable 112,717 415,086 527,803 Due from other governments 67,878 1,643 69,521 Internal balances (559,110) 559,110 - Taxes receivable 301,342 - 301,342 Special assessments receivable 10,779,249 2,624 10,781,873 Long-term notes receivable 225,000 225,000 Prepaid items 178,507 21,396 199,903 Inventory - 14,684 14,684 Permanently restricted cash and investments 121,475 - 121,475 Capital assets: Land 3,275,859 - 3,275,859 Other capital assets, net of depreciation 34,579,114 28,423,284 63,002,398 Total assets 71,181,598 41,515,616 112,697,214 LIABILITIES Accounts payable 398,205 23,951 422,156 Salaries payable 243,829 14,720 258,549 Contracts and retainage payable 143,141 143,141 Accrued interest payable 295,994 295,994 Due to other governments 517 517 Other accrued liabilities 1,765 297 2,062 Non-current liabilities: Due within one year 3,426,332 34,824 3,461,156 Due in more than one year 16,580,325 19,358 16,599,683 Total liabilities 21,090,108 93,150 21,183,258 NET POSITION Net Investment in Capital Assets Restricted for: Debt service - expendable Economic development Environmental improvements - expendable Environmental improvements - nonexpendable Unrestricted Total net position 22,241,821 10,653,558 225,000 21,475 100,000 16,849,636 28,423,284 12,999,182 50,665,105 10,653,558 225,000 21,475 100,000 29,848,818 $ 50,091,490 $ 41,422,466 $ 91,513,956 The accompanying notes are an integral part of these basic financial statements. 22 CITY OF LINO LAKES, MINNESOTA STATEMENT OF ACTIVITIES Year Ended December 31, 2013 Functions/Programs Governmental activities: General government Public safety Public services Parks, recreation and forestry Conservation of natural resources Community development Interest on long-term debt Total governmental activities Business -type activities: Water Sewer Total business -type activities Total Expenses $ 1,566,388 3,950,197 4,540,888 835,783 141,204 404,726 951,842 12,391,028 927,800 1,584,395 2,512,195 $ 14,903,223 Program Revenues Charges for Operating Grants Services and Contributions $ 93,118 697,584 456,024 175,978 1,347 28,118 1,452,169 1,208,742 1,516,397 2,725,139 $ 4,177,308 Capital Grants and Contributions $ 24,197 $ 207,187 231,753 16,204 48,027 941,960 527,368 941,960 $ 527,368 442 441 883 $ 942,843 General revenues: Taxes: Property taxes, levied for general purpose Franchise taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Change in market value Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The accompanying notes are an integral part of these basic financial statements. 23 Statement 2 Net (Expense) Revenue and Changes in Net Position Governmental Business -type Activities Activities Total $ (1,449,073) $ - $ (1,449,073) (3,045,426) - (3,045,426) (2,911,151) - (2,911,151) (643,601) - (643,601) (91,830) - (91,830) (376,608) - (376,608) (951,842) - (951,842) (9,469,531) - (9,469,531) (9,469,531) 281,384 281,384 (67,557) (67,557) 213,827 213,827 213,827 (9,255,704) 8,392,601 - 8,392,601 109,438 - 109,438 61,556 - 61,556 4,442 - 4,442 216,488 113,402 329,890 (270,692) (158,175) (428,867) (353,304) 353,304 - 8,160,529 308,531 8,469,060 (1,309,002) 522,358 (786,644) 51,400,492 40,900,108 92,300,600 $ 50,091,490 $ 41,422,466 $ 91,513,956 24 CITY OF LINO LAKES, MINNESOTA BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2013 G.O. Improvement Municipal Improvement Note State Assets General Bonds 2005A 2009F Aid Cash and investments $ 5,300,509 $ 157,905 $ 996,291 $ 4,595,797 Accrued interest receivable 71,531 - - Accounts receivable 88,282 - - Due from other governmental units 66,378 Interfund receivable - - Taxes receivable: Delinquent 185,420 - - Due from county 79,849 Delinquent tax increment - - Special assessments receivable: Delinquent - 515 Noncurrent 6,451 5,561,118 3,548,573 Due from county - - Long-term notes receivable Prepaid items 176,797 - - Permanently restricted cash and investments Advances to other funds - - Total assets $ 5,975,217 $ 5,719,023 $ 4,545,379 $ 4,595,797 Liabilities , Deferred Inflows of Resources and Fund Balances Liabilities: Interfund payable $ $ 2,259,643 $ $ Accounts payable 153,157 Salaries payable 243,589 Contracts and retainage payable - Due to other governmental units 517 - - Advances from other funds Unearned revenue Total liabilities 397,263 2,259,643 Deferred inflows of resources: Unavailable resources 191,871 5,561,118 3,549,088 Fund balances: Nonspendable 176,797 - Restricted - 996,291 Committed - Assigned - - 4,595,797 Unassigned 5,209,286 (2,101,738) - - Totalfundbalances 5,386,083 (2,101,738) 996,291 4,595,797 Total liabilities , deferred inflows of resources and fund balances $ 5,975,217 $ 5,719,023 $ 4,545,379 $ 4,595,797 The accompanying notes are an integral part of these basic financial statements. 25 Statement 3 Area and Unit Charge Other Governmental Funds $ 3,661,631 $ 7,315,903 24,434 34,776 905,126 23,189 460,881 1,500 2,534,940 24,648 11,127 298 22,580 672,090 4,831 225,000 1,710 121,475 Total Governmental Funds $ 22,028,036 71,531 112,716 67,878 2,534,940 210,068 90,976 298 57,871 10,693,358 28,020 225,000 178,507 121,475 460,881 $ 5,110,037 $ 10,936,102 $ 36,881,555 $ 834,407 84 244,963 240 143,141 460,881 1,765 $ 3,094,050 398,204 243,829 143,141 517 460,881 1,765 84 1,685,397 4,342,387 939,902 719,616 10,961,595 101,710 2,655,259 121,075 4,170,051 6,944,854 (1,291,809) 4,170,051 278,507 3,651,550 121,075 15,710,702 1,815,739 8,531,089 21,577,573 $ 5,110,037 $ 10,936,102 $ 36,881,555 26 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2013 Statement 4 Total Fund Balances for Governmental Funds Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. Those assets consist of: Land Buildings, Net of Accumulated Depreciation Office Equipment and Furniture, Net of Accumulated Depreciation Vehicles, Net of Accumulated Depreciation Machinery and Shop Equipment, Net of Accumulated Depreciation Other Equipment, Net of Accumulated Depreciation Infrastructure, Net of Accumulated Depreciation Some of the City's property taxes and special assessments will be collected after year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as a deferred inflow of resources in the governmental funds. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. Accrued interest for general obligation bonds is included in the statement of net position. Long-term liabilities that pertain to governmental funds, including bonds payable, are not due and payable in the current period and, therefore, are not reported as fund liabilities. All liabilities - both current and long-term - are reported in the statement of net position. Balances at year-end are: Bonds Payable Unamortized Premiums Unamortized Discounts Notes Payable Other Postemployment Benefits Compensated Absence Payable Total Net Position of Governmental Activities The accompanying notes are an integral part of these basic financial statements. 27 $ 3,275,859 3,301,916 407,616 1,064,565 340,245 182,700 29,282,072 $ 21,577,573 37,854,973 10,961,595 (295,994) (15,585,000) (50,835) 22,683 (3,695,000) (83,969) (614,536) (20,006,657) $ 50,091,490 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended December 31, 2013 Revenue: General property taxes Tax increments Licenses and permits Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government Public safety Public works Parks, recreation and forestry Conservation of natural resources Community development Capital outlay: General government Public safety Public works Conservation of natural resources Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Issuance of debt Premium on bonds issued Payment on refunding bonds Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - beginning of year Fund balance - December 31 General $ 7,187,801 431,654 500,963 20,616 296,185 119,079 38,093 (50,343) 38,092 114,390 8,696,530 1,535,416 3,744,957 1,281,135 842,253 134,127 409,487 3,206 32,008 5,886 7,988,475 708,055 10,000 (565,789) G.O. Improvement Municipal Improvement Note State Bonds 2005A 2009F Aid 290,500 290,500 345,000 186,713 531,713 (241,213) 142,736 1,037,820 324 (14) 1,038,130 132,558 132,558 905,572 90,228 49,950 (70,035) (20,085) (20,085) (421,254) (555,789) 142,736 90,228 (421,254) 152,266 (98,477) 995,800 (441,339) 5,233,817 (2,003,261) 491 5,037,136 $ 5,386,083 $ (2,101,738) $ 996,291 $ 4,595,797 28 Statement 5 Area and Unit Charge Other Governmental Funds $ 1,021,594 265,819 486,434 295,149 244,481 176,634 51,435 (43,232) 739,118 64,545 51,200 115,745 623,373 (426,038) 83,008 (112,652) 17,238 215,029 Total Governmental Funds $ 8,209,395 265,819 431,654 500,963 2,130,519 717,300 119,079 222,810 (276,276) 55,330 329,419 1,961,819 12,706,012 34,306 1,569,722 3,744,957 1,608,289 2,953,969 160,544 1,002,797 134,127 9,046 418,533 6,053 9,259 192,782 224,790 51,200 5,886 1,869,000 2,214,000 454,901 774,172 17,137 17,137 4,352,058 13,120,549 (2,390,239) 1,479,577 (237,736) 16,727 808,000 6,558 (435,000) (426,038) 1,638,126 197,335 3,972,716 (752,113) 9,283,202 (414,537) 1,722,541 (1,650,817) 16,727 808,000 6,558 (435,000) 468,009 53,472 21,524,101 $ 4,170,051 $ 8,531,089 $ 21,577,573 29 CITY OF LINO LAKES, MINNESOTA Statement 6 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2013 Net Change in Fund Balances -Total Governmental Funds Amounts reported for governmental activities in the statement of activities are different because: $ 53,472 Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. Capital outlays $ 1,306,334 Loss on disposal of capital assets (159,650) Proceeds from sales of capital assets (16,727) Depreciation expense (2,909,547) (1,779,590) The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported as an expenditure. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities and repayment of principal reduces the liability. Also, governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Interest is recognized as an expenditure in the governmental funds when it is due. In the statement of activities, however, interest expense is recognized as it accrues, regardless of when it is due. The net effect of these differences in the treatment of general obligation bonds and related items is as follows: Issuance of bonds (615,000) Issuance of equipment certificates (193,000) Bond premium (6,558) Repayment of bond principal 2,649,000 Change in accrued interest expense for general obligation bonds 38,046 Write-off of bond issuance costs (219,206) Amortization of bond premium 23,096 Amortization of bond discount (2,469) 1,673,909 Delinquent and noncurrent property taxes and special assessments receivable will be collected subsequent to year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are not available in the governmental funds. Unavailable resources - December 31, 2012 Unavailable resources - December 31, 2013 12,232,276 10,961,595 In the statement of activities, compensated absences and other post employment benefits are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). During fiscal year 2013, compensated absence payable and other post employment benefits payable decreased. Change in Net Position of Governmental Activities The accompanying notes are an integral part of these basic financial statements. 30 (1,270,681) 13,888 $ (1,309,002) CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2013 Statement 7 Assets Current assets: Cash and cash equivalents Accounts receivable Due from other governmental units Interfund receivable Due from county - special assessments Prepaid items Total current assets Non-current assets: Inventory Capital assets being depreciated: Buildings Equipment Water and sewer systems Total capital assets Less: allowance for depreciation Net capital assets Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Salaries payable Other accrued liabilities Compensated absences payable - current portion Total current liabilities Non-current liabilities: Compensated absences payable - long term Total liabilities Net position Investment in capital assets Unrestricted Total net position Water $ 4,791,243 207,315 1,312 6,877 5,006,747 14,684 48,690 155,276 20,088,392 20,292,358 (6,431,915) Sewer $ 7,286,546 207,771 1,643 559,110 1,312 14,519 8,070,901 390,235 21,406,972 21,797,207 (7,234,366) 13,860,443 14,562, 841 13,875,127 14,562,841 18,881,874 22,633,742 14,064 7,359 297 17,412 39,132 9,679 48,811 9,887 7,361 17,412 34,660 9,679 44,339 Total 2013 $ 12,077,789 415,086 1,643 559,110 2,624 21,396 13,077,648 14,684 48,690 545,511 41,495,364 42,089,565 (13,666,281) 28,423,284 28,437,968 41,515,616 23,951 14,720 297 34,824 73,792 19,358 93,150 13,860,443 14,562, 841 28,423,284 4,972,620 8,026,562 12,999,182 $ 18,833,063 $ 22,589,403 $ 41,422,466 The accompanying notes are an integral part of these basic financial statements. 31 CITY OF LINO LAKES, MINNESOTA Statement 8 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS Year Ended December 31, 2013 Water Total Sewer 2013 Operating revenue: Charges for services $ 1,176,917 $ 1,508,997 $ 2,685,914 Hook-up charges 8,750 7,400 16,150 Water meter sales 12,332 12,332 Other operating revenue 10,743 10,743 Total operating revenue 1,208,742 1,516,397 2,725,139 Operating expenses: Personal services 187,942 192,292 380,234 Materials and supplies 148,516 65,547 214,063 Contractual services 58,886 80,653 139,539 MCES sewer charges - 747,199 747,199 Depreciation 416,468 437,725 854,193 Utilities 96,850 45,123 141,973 Other 19,138 15,856 34,994 Total operating expenses 927,800 1,584,395 2,512,195 Net income (loss) from operations 280,942 (67,998) 212,944 Other income (expense): Investment earnings 43,075 70,327 113,402 Net increase (decrease) in fair value of investments (60,082) (98,093) (158,175) Special assessments 442 441 883 Total other expense (16,565) (27,325) (43,890) Net income before contributions and transfers 264,377 (95,323) 169,054 Capital contributions and transfers: Capital contributions from primary government Transfer out Total contributions and transfers 291,403 (35,862) 255,541 133,625 425,028 (35,862) (71,724) 97,763 353,304 Change in net position 519,918 2,440 522,358 Net position - January 1 18,313,145 22,586,963 40,900,108 Net position - December 31 $ 18,833,063 $ 22,589,403 $ 41,422,466 The accompanying notes are an integral part of these basic financial statements. 32 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended December 31, 2013 Statement 9 Cash flows from operating activities: Cash receipts from customers Cash paid to suppliers Cash paid to employees Net cash flows from operating activities Cash flows from noncapital financing activities: Net transfers Cash flows from capital and related financing activities: Collection of special assessments Acquisition of capital assets Net cash flows used by capital and related financing activities Cash flows from investing activities: Interest on investments Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to net cash from operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation Change in assets and liabilities: Increase in receivables (Increase) decrease in prepaid items Increase in inventory Increase (decrease) in payables Net cash flows from operating activities Noncash investing, capital, and financing activities: Capital asset contributions from government Water $ 1,222,831 (304,250) (180,975) 737,606 (35,862) (835) (3,000) (3,835) (17,007) 680,902 4,110,341 $ 4,791,243 $ 280,942 416,468 14,089 2,660 24,614 (1,167) Sewer $ 1,520,747 (962,241) (185,675) 372,831 (35,862) 682 (51,353) (50,671) (27,766) 258,532 7,028,014 Total 2013 $ 2,743,578 (1,266,491) (366,650) 1,110,437 (71,724) (153) (54,353) (54,506) (44,773) 939,434 11,138,355 $ 7,286,546 $ 12,077,789 $ (67,998) $ 437,725 4,350 (2,957) 1,711 $ 737,606 $ 372,831 $ 291,403 $ 133,625 The accompanying notes are an integral part of these basic financial statements. 33 212,944 854,193 18,439 (297) 24,614 544 $ 1,110,437 $ 425,028 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION - FIDUCIARY FUNDS - AGENCY FUNDS December 31, 2013 Statement 10 2013 Assets Cash and investments $ 669,478 Liabilities Deposits payable $ 669,478 The accompanying notes are an integral part of these financial statements. 34 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by U.S. generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Lino Lakes and its component units. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. COMPONENT UNITS In conformity with U.S. generally accepted accounting principles, the financial statements of component units have been included in the financial reporting entity either as blended component units or as discretely presented component units. Blended Component Units The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations because the members of the City Council serve as commission members. The EDA does not issue separate financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations because the members of the City Council serve as commission members. The HRA has not yet incurred any financial activity. B. BASIC FINANCIAL STATEMENTS 1. Government -Wide Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) display information about the primary government and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. 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 to external parties for support. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's enterprise funds and various other functions of government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 35 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 1. Government -Wide Statements (Continued) In the government -wide statement of net position, both the governmental and business -type activities columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The City's net position is reported in three parts: (1) net investment in capital assets; (2) restricted net position; and (3) unrestricted net position. The City first utilizes restricted resources to finance qualifying activities. The statement of activities demonstrates the degree to which the direct expenses of each function of the City's governmental activities and different business -type activities are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a given function or activity; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds, including its fiduciary funds and blended component unit. Separate statements for each fund category (governmental, proprietary, and fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or incidental activities. The City reports the following major governmental funds: General Fund The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. General Obligation Improvement Bonds 2005A Fund The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. Improvement Note 2009F Fund The improvement note 2009F fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. Municipal State Aid Fund The Municipal State Aid fund accounts for the collection of assessments on municipal state aid projects. 36 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 2. Fund Financial Statements (Continued) Area and Unit Charge Fund The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for debt payments and construction of governmental infrastructure. The City reports the following major proprietary funds: Water Fund The water fund accounts for customer water service charges that are used to finance water operating expenses. Sewer Fund The sewer fund accounts for customer water service charges that are used to finance water operating expenses. Additionally, the City reports the following fiduciary funds: Agency Funds - to account for assets held as an agent for individuals, private organizations, other governmental units, and/or other funds. The City's agency fund accounts for pass-through contractor's deposits relating to prospective developments. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. 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. The City considers all revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. 37 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED) Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services, or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions, including special assessments. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is not presently considered necessary to assure effective budgetary control or to facilitate effective cash management. E. LEGAL COMPLIANCE — BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget (including the General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The City Administrator is authorized to transfer appropriations within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 38 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. LEGAL COMPLIANCE — BUDGETS (CONTINUED) 7. A capital improvement program is reviewed periodically by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e. administration, community development, public safety, public services, and other). 9. The City Council may authorize transfers of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund in the governmental fund financial statements, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund payables are eliminated for statement of Net position presentation. Investments are stated at fair value and interest earnings are accrued at year-end. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. Permanently restricted cash and investments represents the principal portion of resources received that must be retained in a permanent fund. Only earnings from these funds may be used for purposes that support environmental maintenance and improvements. G. PROPERTY TAX CREDITS Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property. The State remits these credits through installments each year. These credits are recognized as revenue by the City at the time of collection. 39 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources because it is not available to finance current expenditures. Deferred inflows of resources in governmental fund are susceptible to full accrual on the government -wide statements. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for 2013 totaled $1,094,578. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, noncurrent and special assessments receivable in governmental funds are completely offset by deferred inflow of resources. Deferred inflows of resources in governmental funds are susceptible to full accrual on the government -wide statements. 40 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED) Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. J. INVENTORIES AND PREPAIDS The original cost of materials and supplies has been recorded as expenditures/expenses at the time of purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts of materials and supplies. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items under the purchases method in both government -wide and fund financial statements. K. INTERFUND RECEIVABLES/PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. The year-end balances are classified as interfund receivables and payables on the governmental fund balance sheets. The non-current portion of interfund loans are reported as "advances to/from other funds." Advances between funds are offset by a nonspendable fund balance account in applicable governmental funds to indicate they are not available for appropriation and are not expendable from available financial resources. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, street lights, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets exceeding the City's capitalization threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. All existing City infrastructure has been capitalized regardless of date placed in service. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net position. Capital assets are depreciated using the straight-line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure. Capital assets not being depreciated include land and construction in progress. 41 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation, PTO (Personal Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay allowable as severance pay is accrued in the government -wide and proprietary fund financial statements. The current portion is calculated based on historical trends. N. LONG-TERM OBLIGATIONS In the entity -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issue costs, if material, are amortized over the term of the related debt using the straight-line method. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. O. FUND EQUITY In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable — portions of fund balance related to prepaids, inventories, long-term receivables, and corpus on any permanent fund. Restricted — funds are constrained by external parties (statute, grantors, bond agreements, etc). Committed — funds are established and modified by a resolution approved by the City Council. Assigned — consists of internally imposed constraints. These constraints are established by the City Council and/or management. The City Council also delegates the authority to assign fund balance to the Finance Director. Unassigned — is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the City's policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts. The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund balance range of 40% - 50% of General Fund operating expenditures. 42 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. FUND EQUITY (CONTINUED) The fund equity balances in the proprietary funds have been classified into two broad categories: Net position — net investment in capital assets Unrestricted net position Net position represents the differences between assets and liabilities in the government -wide financial statements. Net position — net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the ouststanding balance of any long-term debt used to build or acquire capital assets. Net position is reported as restricted in government -wide financial statements when there are limitations on their use thorugh external restrictions imposed by creditors, grantors, or laws or regulations of other governments. P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All Interfund transactions are eliminated except for activity between governmental activities and business - type activities for presentation in the entity -wide statements of Net position and statements of activities. Note 2 DEPOSITS AND INVESTMENTS Components of Cash and Investments Cash and investments at year-end consists of the following: Deposits Investments Cash on Hand Total Cash and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Position Permanent restricted Cash and Investments - Statement of Net Position Cash and Investments - Statement of Net Position - Fiduciary Funds Total A. DEPOSITS $ 3,252,636 31,643,322 820 $ 34,896,778 $ 34,105,825 121,475 669,478 $ 34,896,778 The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council. 43 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) A. DEPOSITS (CONTINUED) Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial credit risk but rather follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of a state or local government rated "A" or better; revenue obligations of a state or local government rated "AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a commercial bank or other financial institution not owned or controlled by the depository. The City's deposits in banks at December 31, 2013 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. B. INVESTMENTS The City may also invest idle funds as authorized by Minnesota Statutes as follows: Direct obligations or obligations guaranteed by the United States or its agencies Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less General obligations rated "A" or better; revenue obligations rated "AA" or better General obligations of the Minnesota Housing Finance Agency rated "A" or better Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days or less Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches of foreign 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 Repurchase or reverse purchase agreements and securities lending agreements financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers Any security which is an obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55. Investments Held with Broker — Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's policy to minimize interest rate risk includes investing primarily in short-term securities and structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations. Information about the sensitivity of the fair values of the City's investments to market interest rate risk fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: 44 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. INVESTMENTS (CONTINUED) 12 Months 13 to 24 25 to 60 More than Type Total or Less Months Months 60 Months Minnesota Municipal Money Market Trust Fund $ 944,001 $ 944,001 $ - $ - $ Federal Home Loan Bank 2,434,579 - - 2,434,579 Federal Home Loan Mortgage Corp. 348,593 - 348,593 - Federal National Mortgage Assn. 2,543,496 - 597,449 1,946,047 Negotiable CDs 12,899,752 6,410,000 4,057,457 2,432,295 - Municipal Bonds 10,953,310 1,145,804 2,135,439 5,704,334 1,967,733 Mutual Fund 1,519,591 1,519,591 - - - Total $ 31,643,322 $ 10,019,396 $ 6,192,896 $ 9,082,671 $ 6,348,359 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City's policy to minimize credit risk includes limiting investing funds to those allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following chart summarizes year-end ratings for the City's investments as rated by Moody's Investors Service: Type Credit Quality Rating Amount Minnesota Municipal Money Market Trust Fund Aa2 $ 944,001 Federal Home Loan Bank Aaa/AA+ 2,434,579 Federal Home Loan Mortgage Corp. Aaa/AA+ 348,593 Federal National Mortgage Assn. Aaa/AA+ 2,543,496 Negotiable CDs Not Rated 12,899,752 Municipal Bonds A-Aaa 10,953,310 Mutual Fund Not Rated 1,519,591 Total $ 31,643,322 The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota statutes as described on the previous page. Its investments are valued at amortized cost, which approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The amortized cost method of valuation values a security at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the fair value of instruments. The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2. For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. 45 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. INVESTMENTS (CONTINUED) Concentration of Credit Risk The City places no limit on the amount that it may invest in any one issuer. The following is a list of investments which individually comprise more than 5% of the City's total investments: Type Federal National Mortgage Assn. Federal Home Loan Bank Note 3 CAPITAL ASSETS Amount $ 2,543,496 2,434,579 Capital asset activity for the year ended December 31, 2013 was as follows: Governmental Activities: Capital Assets, Not Being Depreciated: Land Capital Assets, Being Depreciated: Buildings Office Equipment and Furniture Vehicles Machinery and Shop Equipment Other Equipment Infrastructure Total Capital Assets, Being Depreciated Accumulated Depreciation for: Buildings Office Equipment and Furniture Vehicles Machinery and Shop Equipment Other Equipment Infrastructure Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Governmental Activities Capital Assets, Net Beginning Balance Increases $ 3,275,859 $ 6,530,334 1,372,230 2,514,738 923,595 952,447 77,876,924 90,170,268 195,783 36,904 159,041 914,606 1,306,334 Percentage Decreases 8.04% 7.69% Ending Balance $ 3,275,859 6,726,117 (26,102) 1,383,032 (130,829) 2,542,950 (3,000) 920,595 952,447 (183,726) 78,607,804 (343,657) 91,132,945 (3,206,148) (218,053) - (3,424,201) (921,491) (80,027) 26,102 (975,416) (1,366,677) (242,537) 130,829 (1,478,385) (530,970) (52,380) 3,000 (580,350) (747,408) (22,339) - (769,747) (47,038,870) (2,294,211) 7,349 (49,325,732) (53,811,564) (2,909,547) 167,280 (56,553,831) 36,358,704 (1,603,213) (176,377) 34,579,114 $ 39,634,563 $ (1,603,213) $ (176,377) $ 37,854,973 46 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 3 CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Balance Business -Type Activities: Capital Assets, Being Depreciated: Buildings $ 48,690 $ - $ - $ 48,690 Machinery and Shop Equipment 503,871 54,354 (12,714) 545,511 Water and Sewer Lines 41,070,336 425,028 - 41,495,364 Total Capital Assets, Being Depreciated 41,622,897 479,382 (12,714) 42,089,565 Accumulated Depreciation for: Buildings (48,690) - - (48,690) Machinery and Shop Equipment (307,968) (17,330) 12,714 (312,584) Water and Sewer Lines (12,468,144) (836,863) - (13,305,007) Total Accumulated Depreciation (12,824,802) (854,193) 12,714 (13,666,281) Total Capital Assets, Being Depreciated, Net 28,798,095 (374,811) - 28,423,284 Business -Type Capital Assets, Net $ 28,798,095 $ (374,811) $ - $ 28,423,284 Depreciation expense charged to functions/programs of the primary government as follows: Governmental Activities: General Government $ 238,194 Public Safety 114,976 Public Services 2,413,609 Parks, Recreation and Forestry 142,268 Community Development 500 Total Depreciation Expense, Governmental Activities $ 2,909,547 Business -type Activities: Water $ 416,468 Sewer 437,725 Total Depreciation Expense, Governmental Activities $ 854,193 The City contributed $425,028 of capital assets from the governmental activities to the business -type activities. 47 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 4 CITY INDEBTEDNESS City indebtedness at December 31, 2013 is composed of the following: Final Issue Maturity Interest Original Date Date Rate Issue Payable 12/31/2013 Governmental Activities: General Obligation Bonds: 2011A Equipment Certificates 2/14/2011 12/31/2014 1.00% $ 120,000 $ 41,000 2012A Equipment Certificates 2/1/2012 12/31/2014 1.00% 150,000 101,000 2013A Equipment Certificates 2/1/2013 12/31/2015 1.00% 193,000 193,000 G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00%-4.30% 2,460,000 2,220,000 G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00%-4.15% 570,000 255,000 G.O. OP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 1,930,000 G.O. Tax Increment Financing Bonds, Series 2007A 7/15/2007 2/1/2024 4.00%-4.125% 4,215,000 3,110,000 G.O. Refunding Bonds, Series 2012A 11/15/2012 2/1/2024 1.00%-2.00% 2,015,000 2,015,000 Total General Obligation Bonds 12,713,000 9,865,000 Special Assessment Bonds: G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20%-5.60% 250,000 35,000 G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35%-5.15% 5,550,000 3,505,000 G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75%-5.00% 3,755,000 845,000 G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A 7/9/2010 2/1/2020 2.00%-3.00% 1,000,000 720,000 G.O. Improvement Bonds, Series 2013A 7/15/2013 2/1/2024 1.25%-4.00% 615,000 615,000 Total Special Assessment Bonds 11,170,000 5,720,000 Total Bonds 23,883,000 15,585,000 Note Payable - Anoka County - 2009A 8/1/2009 8/1/2024 4.00%-3.70% 4,260,000 3,695,000 Unamortized Bond Discounts (45,490) (22,683) Unamortized Bond Premiums 202,370 50,835 Compensated Absences Payable N/A 614,536 Other Post Employment Benefit Plan N/A 83,969 Total Governmental Activities $ 28,299,880 $ 20,006,657 Business -Type Activities: Revenue Bonds: Compensated Absences Payable N/A $ 54,182 48 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 4 CITY INDEBTEDNESS (CONTINUED) The following is a schedule of changes in City indebtedness for the year ended December 31, 2013: Governmental activities: Bonded debt: General Obligation Special Assessment Unamortized Bond Discounts Unamortized Bond Premiums Note Payable - Anoka County Compensated Absences Payable Other Post Employment Benefit Plan Total Governmental Activities Business -Type Activities: Compensated Absences Payable Total Payable 12/31/2012 $ 10,646,000 6,780,000 (25,152) 67,373 3,695,000 634,572 77,821 21,875,614 43,410 $ 21,919,024 Issues Payable Due Within Payments 12/31/2013 One Year $ 193,000 $ 974,000 $ 9,865,000 $ 1,129,000 615,000 1,675,000 5,720,000 920,000 (2,469) (22,683) 6,558 23,096 50,835 3,695,000 995,000 528,925 548,961 614,536 382,332 6,148 83,969 1,349,631 3,218,588 20,006,657 3,426,332 43,197 32,425 54,182 34,824 $ 1,392,828 $ 3,251,013 $ 20,060,839 $ 3,461,156 All long-term bonded indebtedness outstanding at December 31, 2013 is backed by the full faith and credit of the City, including special assessment bond issues. Minimum annual principal and interest payments required to retire long-term debt, not including compensated absences payable are as follows. Years Ending December 31 2014 2015 2016 2017 2018 2019-2023 2024-2026 Total Bonded Debt Notes Payable Total Principal Interest Principal Interest Principal Interest $ 2,049,000 $ 552,473 $ 995,000 $ 114,951 $ 3,044,000 $ 667,424 2,231,000 467,294 360,000 100,345 2,591,000 567,639 1,850,000 392,528 375,000 90,945 2,225,000 483,473 1,875,000 324,288 390,000 80,945 2,265,000 405,233 1,660,000 258,245 405,000 70,345 2,065,000 328,590 5,410,000 547,878 1,170,000 154,314 6,580,000 702,192 510,000 8,436 - - 510,000 8,436 $ 15,585,000 $ 2,551,141 $ 3,695,000 $ 611,845 $ 19,280,000 $ 3,162,986 Description and Restrictions of Long -Term Debt General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 4 CITY INDEBTEDNESS (CONTINUED) Description and Restrictions of Long -Term Debt (Continued) Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be repaid primarily from pledged revenues derived from the constructed assets. In July 2013, the City issued General Obligation Improvement Bonds of $615,000 to fund the Otter Lake Extension project. The $615,000 is being funded by special assessments related to the improvement project that the City has collected. The bond was issued at a rate of 1.25% . The bonds will be called in 2024. Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. For the governmental activities, compensated absences and other postemployment benefit liability are generally liquidated by the general fund. The liability for Proprietary Fund employees is included in the accrued liabilities of those funds. Note 5 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Lino Lakes' legal debt margin for 2013 is computed as follows: 12/31/2013 Market value $ 1,519,857,242 Applicable percentage 3.0% Debt Limit 45,595,717 Amount of debt applicable to debt limit: Total bonded debt 15,585,000 Less: Special assessment bonds (5,720,000) Tax abatement bonds (2,220,000) Utility revenue bonds (255,000) Tax increment financing bonds (3,110,000) Total debt applicable to debt limit 4,280,000 Legal debt margin 50 $ 41,315,717 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City of Lino Lakes are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are a cost-sharing, multiple -employer retirement plan. This plan is established and administered in accordance with Minnesota Statutes, Chapter 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State 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. 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% of average salary for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and 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 GERF and PEPFF. That report may be obtained on the internet at www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. 51 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) B. FUNDING POLICY Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 6.25% respectively, of their annual covered salary. PEPFF members were required to contribute 9.6% of their annual covered salary in 2012. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the General Employees Retirement Fund for the years ended December 31, 2013, 2012, and 2011 were $160,392, $164,317, and $187,186, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ended December 31, 2013, 2012, and 2011 were $290,737, $315,541, and $285,356, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed. Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY A. DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 2013 as follows: Fund Balance Deficit Dedicated Parks $ (444,279) 21st Ave. Extension 1-13 (29,455) Tax Increment Financing 1-11 (770,196) Improvement and Utility Revenue Refunding Bonds 2010 (47,879) G.O. Improvement Bonds 2005A (2,101,738) The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. 52 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY (CONTINUED) B. EXPENDITURES IN EXCESS OF BUDGET The following is a listing of expenditure categories that exceed budget appropriations for non -major funds: Budget Actual Excess Program Recreation Special Revenue Fund: Supplies $ 51,675 $ 73,185 $ (21,510) Note 9 CONTINGENCIES Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could have a material effect on the financial statements. Federal and State Funds — The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2013. Litigation — The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments, and litigation. As of December 31, 2013 any potential affect this may have on the City is not estimable, however it is not expected to have a material effect on the financial statements of the City. Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2013. Future scheduled tax levies for all bonds outstanding at December 31, 2013 totaled $16,589,767. 53 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 11 FUND BALANCE At December 31, 2013, the City had various fund balances restricted, committed, or assigned through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2013 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: Total Nonspendable Restricted Committed Assigned Unassigned General Fund: $ 5,209,286 $ - $ $ - $ - $ 5,209,286 Prepaid Items 176,797 176,797 - - - - Total General Fund 5,386,083 176,797 - - 5,209,286 G.O. Improvement Bonds 2005A: Deficit Fund Balance (2,101,738) (2,101,738) Improvement Bonds 2009F: Debt Service 996,291 996,291 - Municipal State Aid: Construction Projects 4,595,797 - - - 4,595,797 Area and Unit Charge: Advances to Other Funds 460,881 - 460,881 - Construction Projects 3,709,170 3,709,170 Total Area and Unit Charge 4,170,051 4,170,051 Nonmajor Governmental Funds: Prepaid Items 1,710 1,710 - Economic Development - Loan Receivable 225,000 - 225,000 Corpus of Permanent Fund 100,000 100,000 - - - Program Recreation 110,457 110,457 Cable TV Fund 10,618 10,618 Environmental Improvements 21,475 21,475 - Debt Service 2,408,784 2,408,784 - Construction Projects 6,944,854 6,944,854 Deficit Fund Balance (1,291,809) - (1,291,809) Total Nonmajor Funds 8,531,089 101,710 2,655,259 121,075 6,944,854 (1,291,809) Total Fund Balances $ 21,577,573 $ 278,507 $ 3,651,550 $ 121,075 $ 15,710,702 $ 1,815,739 Note 12 SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2013 was $61,280. Note 13 INTERFUND RECEIVABLE AND PAYABLES The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds and at December 31, 2013 are as follows: Receivable Payable Governmental Activity: G.O. Improvement Bonds 2005A $ - $ 2,259,643 Other Nonmajor Governmental Funds 2,534,940 834,407 Business -Type Activity: Sewer Fund 559,110 $ 3,094,050 $ 3,094,050 54 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 13 INTERFUND RECEIVABLE AND PAYABLES (CONTINUED) Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and from other fund and at December 31, 2013 are as follows: Receivable Payable Governmental Activity: Area and Unit Charge $ 460,881 $ Other Nonmajor Governmental Funds 460,881 $ 460,881 $ 460,881 The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated Parks Fund. Note 14 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2013 are as follows: Transfer In Transfer Out Governmental Activity: General Fund $ 10,000 $ (565,789) G.O. Improvement Note 2009A 142,736 Improvement Bonds of 2009F 90,228 Area and Unit Charge (426,038) Municipal State Aid - (421,254) Other Nonmajor Governmental Funds 1,479,577 (237,736) Total Governmental Activity 1,722,541 (1,650,817) Business -Type Activity: Water Fund - (35,862) Sewer Fund (35,862) Total Business -Type Activity (71,724) Total $ 1,722,541 $ (1,722,541) Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open and close funds. Note 15 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. 55 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 15 RISK MANAGEMENT (CONTINUED) Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. Note 16 CONDUIT DEBT OBLIGATIONS The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial assistance to private -sector entities for the acquisition and construction of industrial and commercial facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2013, one series of Industrial Revenue Bonds was outstanding with an aggregate remaining principal balance of $540,000, and one series of Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $2,152,037. Note 17 JOINT VENTURES Fire The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two commissioners to the District's Board. 56 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 17 JOINT VENTURES (CONTINUED) Fire (Continued) Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula takes into account each city's average number of calls, population, and total market value. During 2013, the City of Lino Lakes' contributions to the District were as follows: Operating $ 511,770 Capital 85,250 Total $ 597,020 The audited financial statements of the District as of December 31, 2012 can be reviewed upon request of the Centennial Fire District. In January 2014 the City Council voted to start the process to withdraw from the District which will be effective January 27, 2016. The City is currently exploring options for fire protection starting in January 2016. Anoka County The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid Highway 14 (Main Street) and I -35E Interchange County Project. Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2011. A. PLAN DESCRIPTION The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of December 31, 2013 there were approximately 49 active participants and 7 retired participants receiving benefits from the City's health plans. B. FUNDING POLICY The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2013, the City contributed $21,289 to the plan. 57 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) C. ANNUAL OPEB COST AND NET OPEB OBLIGATION The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un -funded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution $ 29,449 Interest on Net OPEB Obligation 1,663 Adjustment to Annual Required Contribution (3,675) Annual OPEB Cost (Expense) 27,437 Contributions Made (21,289) Increase in Net OPEB Obligation 6,148 Net OPEB Obligation- Beginning of Year 77,821 Net OPEB Obligation- End of Year $ 83,969 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2013 and the two preceding years: Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Contributed Obligation 12/31/2011 $ 27,917 65.9% $ 72,808 12/31/2012 29,610 65.2% 77,821 12/31/2013 27,437 77.6% 83,969 D. FUNDED STATUS AND FUNDING PROGRESS As of January 1, 2011, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $474,770. The annual payroll for active employees covered by the plan in the actuarial valuation was $4,953,560 for a ratio of UAAL to covered payroll of 9.6%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 58 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) E. ACTUARIAL METHODS AND ASSUMPTIONS Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 2% inflation rate, a 2% investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 0%, increasing to an ultimate rate of 4% after three years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2013 was not to exceed 30 years. 59 REQUIRED SUPPLEMENTARY INFORMATION CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 11 Page 1 of 6 2013 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenue: General property taxes: Current and delinquent $ 7,330,538 $ 6,306,938 $ 6,218,617 $ (88,321) Fiscal disparities 983,600 958,004 (25,596) Excess tax increments - - 11,180 11,180 Total general property taxes 7,330,538 7,290,538 7,187,801 (102,737) Licenses and permits: Business 80,300 97,800 100,685 2,885 Non -business 269,000 304,000 330,969 26,969 Total licenses and permits 349,300 401,800 431,654 29,854 Intergovernmental: State: Market value credit 3,988 3,988 Police state aid 165,000 199,000 199,076 76 MSA maintenance 200,000 231,000 231,753 753 Other 35,000 35,000 18,968 (16,032) County/Regional: Solid waste 35,000 35,000 45,831 10,831 Other 4,000 4,000 1,347 (2,653) Total intergovernmental 439,000 504,000 500,963 (3,037) Special assessments: Penalties and Interest 15,000 15,000 20,616 5,616 Charges for services: General government 17,600 3,600 5,446 1,846 Planning/engineering 8,000 8,000 24,968 16,968 Fees retained from collection for other governments - SAC/surcharge 1,000 1,000 1,822 822 Administrative charge - other funds 50,000 50,000 50,100 100 Aerial map charge - other funds 5,000 5,000 3,150 (1,850) Public safety 151,500 186,500 210,699 24,199 Total charges for services 233,100 254,100 296,185 42,085 Fines and forfeits 140,000 118,000 119,079 1,079 Investment earnings 40,000 28,000 38,093 10,093 Change in market value - (50,343) (50,343) Refunds 25,000 37,000 38,092 1,092 Miscellaneous: Gas franchise fees 50,000 50,000 61,280 11,280 Cable TV 37,500 37,500 37,500 - Donations 5,000 5,000 (5,000) Other 11,000 _ 20,500 15,610 (4,890) Total miscellaneous 103,500 113,000 114,390 1,390 Total revenue 8,675,438 8,761,438 8,696,530 (64,908) 60 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 11 Page 2 of 6 2013 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Expenditures: General government: Mayor and council: Current: Personal services $ 40,581 $ 32,481 $ 31,511 $ 970 Other services and charges 25,000 20,800 14,997 5,803 Contractual services 15,270 15,270 15,429 (159) Total mayor and council 80,851 68,551 61,937 6,614 Elections: Current: Personal services 7,025 7,025 7,610 (585) Supplies 100 100 98 2 Other services and charges 2,500 2,500 2,147 353 Contractual services 500 500 500 Capital outlay 3,000 3,000 2,940 60 Total elections 13,125 13,125 12,795 330 Administration: Current: Personal services 350,592 350,592 315,260 35,332 Other services and charges 20,360 16,360 14,817 1,543 Contractual services 6,100 6,100 4,116 1,984 Total administration 377,052 373,052 334,193 38,859 Finance: Current: Personal services 293,053 288,053 289,397 (1,344) Supplies 1,200 1,200 1,117 83 Other services and charges 114,600 114,600 104,677 9,923 Contractual services 100,900 100,900 99,005 1,895 Total finance 509,753 504,753 494,196 10,557 Cable TV: Current: Personal services 2,167 2,167 1,556 611 Supplies 50 50 - 50 Capital outlay 500 500 266 234 Total cable TV 2,717 2,717 1,822 895 Consultants: Current: Legal 140,000 140,000 123,111 16,889 61 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 11 Page 3 of 6 2013 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) General government (continued): Engineering/planning Current: Contractual services $ 106,400 $ 106,400 $ 108,700 $ (2,300) Charter commission: Current: Other services and charges 1,500 1,500 818 682 General government buildings: Current: Personal services 2,174 2,174 2,128 46 Supplies 27,000 35,000 34,024 976 Other services and charges 292,380 322,880 300,651 22,229 Contractual services 68,000 68,000 64,247 3,753 Total general government buildings 389,554 428,054 401,050 27,004 Total general government 1,620,952 1,638,152 1,538,622 99,530 Public safety: Police: Current: Personal services 2,867,445 2,875,445 2,887,198 (11,753) Supplies 35,000 35,000 30,299 4,701 Other services and charges 88,760 78,760 71,176 7,584 Contractual services 41,220 41,220 35,210 6,010 Capital outlay 30,000 30,000 32,008 (2,008) Total police 3,062,425 3,060,425 3,055,891 4,534 Fire protection: Current: Contractual services 533,673 533,673 511,770 21,903 Building inspection: Current: Personal services 199,866 201,366 201,560 (194) Supplies 1,050 1,050 417 633 Other services and charges 7,320 7,320 6,240 1,080 Contractual services 500 1,500 1,087 413 Total building inspection 208,736 211,236 209,304 1,932 Total public safety 3,804,834 3,805,334 3,776,965 28,369 62 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 11 Page 4 of 6 2013 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Public works: Streets: Current: Personal services $ 544,399 $ 551,399 $ 522,512 $ 28,887 Supplies 115,000 107,500 114,084 (6,584) Other services and charges 109,060 109,060 105,289 3,771 Contractual services 172,275 172,275 152,909 19,366 Total streets 940,734 940,234 894,794 45,440 Fleet: Current: Personal services 101,689 100,689 101,548 (859) Supplies 201,000 201,000 229,661 (28,661) Other services and charges 52,880 48,880 53,034 (4,154) Contractual services 2,700 2,700 2,098 602 Total fleet 358,269 353,269 386,341 (33,072) Total public works 1,299,003 1,293,503 1,281,135 12,368 Parks and recreation: Parks: Current: Personal services 442,618 448,718 450,592 (1,874) Supplies 26,500 26,500 24,964 1,536 Other services and charges 48,400 55,400 54,840 560 Contractual services 35,800 35,800 15,737 20,063 Total parks 553,318 566,418 546,133 20,285 Recreation: Current: Personal services 272,714 277,014 277,151 (137) Supplies 2,500 2,500 2,685 (185) Other services and charges 14,750 14,750 15,047 (297) Contractual services 400 400 1,237 (837) Total recreation 290,364 294,664 296,120 (1,456) Total parks and recreation 843,682 861,082 842,253 18,829 63 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 11 Page 5 of 6 2013 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Conservation of natural resources: Forestry: Current: Personal services $ 33,753 $ 33,753 $ 33,775 $ (22) Supplies 1,250 1,250 897 353 Other services and charges 400 400 355 45 Contractual services 5,500 5,500 305 5,195 Capital outlay 5,000 5,000 5,886 (886) Total forestry 45,903 45,903 41,218 4,685 Environmental: Current: Personal services 50,322 50,322 50,906 (584) Supplies 1,400 1,400 333 1,067 Other services and charges 8,550 8,550 4,322 4,228 Contractual services 1,300 1,300 130 1,170 Total environmental 61,572 61,572 55,691 5,881 Solid waste abatement: Current: Personal services 29,399 29,399 29,889 (490) Supplies - - 396 (396) Other services and charges 550 550 350 200 Contractual services 6,000 12,000 12,469 (469) Total solid waste abatement 35,949 _ 41,949 43,104 (1,155) Total conservation of natural resources 143,424 149,424 140,013 9,411 64 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 11 Page 6 of 6 2013 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Community development: Community development: Current: Personal services $ 191,352 $ 192,852 $ 194,283 $ (1,431) Supplies 100 100 54 46 Other services and charges 8,500 8,500 1,803 6,697 Contractual services 1,400 1,400 267 1,133 Total community development 201,352 202,852 196,407 6,445 Economic development: Current: Personal services 91,388 49,388 49,313 75 Supplies 150 150 - 150 Other services and charges 53,750 68,750 64,666 4,084 Contractual services 400 400 250 150 Total economic development 145,688 118,688 114,229 4,459 Planning and zoning commission: Current: Personal services 81,275 78,275 70,713 7,562 Supplies 200 200 - 200 Other services and charges 16,900 11,900 7,343 4,557 Contractual services 24,000 19,000 20,795 (1,795) Total planning and zoning commission 122,375 109,375 98,851 10,524 Total community development 469,415 430,915 409,487 21,428 Other : Contingency 145,075 147,975 - 147,975 Total expenditures 8,326,385 8,326,385 7,988,475 337,910 Revenue over expenditures 349,053 435,053 708,055 273,002 Other financing sources (uses): Transfer in - 10,000 10,000 Transfer out (515,000) (565,000) (565,789) (789) Net increase (decrease) in fund balance Fund Balance - January 1 Fund balance - December 31 $ (165,947) $ (129,947) 152,266 $ 282,213 65 5,233,817 $ 5,386,083 CITY OF LINO LAKES, MINNESOTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2012 Note 1 BUDGETS The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles. The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded budget appropriations. Final Budget Actual Actual in Excess of Budget General Fund: General government: Engineering/planning $ 106,400 $ 108,700 $ (2,300) Public works: Fleet 353,269 386,341 (33,072) Parks and recreation: Recreation: 294,664 296,120 (1,456) Conservation of natural resources: Solid waste abatement 41,949 43,104 (1,155) The excess expenditures were covered by more than anticipated revenues during 2013. 66 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN December 31, 2013 Statement 12 Actuarial UAAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (b -a) (a/b) (c) ((b-a)/c) 1/1/2008 $ $ 329,191 $ 329,191 $ 4,859,980 6.8% 1/1/2011 - 474,770 474,770 - 4,888,702 9.7% 67 Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds during the year. Economic Development Authority - established to account for the receipt and uses of funds for economic purposes. Cable TV Fund - established to account for activities relating to their Cable TV. Program Recreation - established to account for various self-supporting recreational programs. Debt Service Funds The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. The City's Debt Service Funds account for four types of bonded indebtedness: General Debt Bonds - are repaid primarily from property taxes. Improvement Bonds - are repaid primarily from special assessments. Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA leasing the buildings to the City of Lino Lakes and other tenants. Revenue Bonds - These bonds were issued to finance various improvements and will be repaid primarily from pledged revenues derived from the constructed assets. Capital Project Funds Capital Project Funds account for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds. The City maintained the following nonmajor Capital Project Funds during the year: Capital Improvement Projects - to account for the proceeds from Equipment Certificates. Capital Equipment Revolving Fund - to account for funds held to purchase capital equipment. Closed Bond Fund - to account for excess funds from matured bond issues. Street Reconstruction - to account for the financing of future reconstruction of City streets. Sealcoating - to account for money received from assessments and developer deposits for future street sealcoating projects. Surface Water Management - to account for the financing of surface water management and storm water improvements. Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch Street and Hodgson Road. Tax Increment Funds - to account for development projects financed with tax increments. Nonmajor Governmental Funds (Continued) Capital Project Funds (Continued) Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees. 135E Interschange Fund - to account for activity related to the I35E/CSAH 14 Interchange Reconstruction Project. Office Equipment Revolving Fund - to account for the receipt and use of funds for office equipment purchases. Legacy Woods Edge Improvement Fund - the Legacy Woods Edge Improvement fund accounts for construction costs related to infrastructure improvements in the Legacy Woods Edge development. Traffic Signal Fund - the Legacy traffic signal charge fund accounts for costs associated with construction of traffic signals in the City. Otter Lake Road Exension Fund - this fund accounts for activities relating to the construction performed in the extension of the Otter Lake Road. 21st Ave Extension Fund - this fund accounts for activities relating to the construction performed in the extension of 21St Avenue within the City. Permanent Funds Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs. The City maintained the following nonmajor Permanent Fund during the year. Foxborough Environment Fund - established to account for the use of funds received for environmental maintenance and improvements in the Foxborough area. CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Assets Cash and investments Taxes receivable: Delinquent Due from county Special assessments receivable: Delinquent Noncurrent Due from county Long-term notes receivable Prepaid items Total assets Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Accounts payable Salaries payable Uneamed revenue Total liabilities Deferred inflows of resources: Unavailable resources Special Revenue Debt Service Economic Special Certificates Improvement Improvement Development Cable TV Program Revenue of Bonds of Bonds of Authority Fund Recreation Subtotal Indebtedness 2002A 2002B 225,000 $ 10,618 $ 119,605 $ 130,223 $ 151,341 $ 187,564 $ 69,932 1,710 225,000 1,710 5,001 1,923 39,136 $ 225,000 $ 10,618 $ 121,315 $ 356,933 $ 158,265 $ 226,700 $ 69,932 $ $ 7,143 $ 7,143 $ $ $ 240 240 1,765 1,765 9,148 9,148 5,001 39,136 Fund balance (deficit): Nonspendable - 1,710 1,710 - - - Restricted 225,000 - 225,000 153,264 187,564 69,932 Committed 10,618 110,457 121,075 - Assigned Unassigned Total fund balance (deficit) 225,000 10,618 112,167 347,785 153,264 187,564 69,932 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 225,000 $ 10,618 $ 121,315 $ 356,933 $ 158,265 $ 226,700 $ 69.932 68 Statement 13 Page 1 of 3 Debt Service (Continued) Improvement Tax Utility CIP Refunding Improvement Improvement Abatement Revenue Refunding Bonds of Bonds of Bonds of Bonds Bonds Bonds 2003A 2003B 2005B 2006C 2006D 2006E $ 129,030 $ 53,358 $ 462,017 $ 206,347 $ 95,579 $ 828,858 579 3,368 5,399 10,301 258 1,476 2,575 4,847 6,183 87,022 24,061 81,067 354 8,287 110,495 $ 216,052 $ 84,439 $ 548,282 $ 214,321 $ 214,361 $ 844,006 $ 2,750 $ 2,750 87,021 30,825 84,435 5,399 118,782 10,301 126,281 53,614 463,847 208,922 95,579 833,705 126,281 53,614 463,847 208,922 95,579 833,705 $ 216,052 $ 84,439 $ 548,282 $ 214,321 $ 214,361 $ 844,006 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Assets Cash and investments Due from other governmental units Interfund receivable Taxes receivable: Delinquent Due from county Delinquent tax increment Special assessments receivable: Delinquent Noncurrent Due from county Total assets Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Debt Service (Continued) Capital Projects Improvement and TIF Utility Revenue Improvement Improvement Debt Capital Capital Bonds Refunding Bonds Bonds of Bonds of Service Improvement Equipment 2007A 2010 2012A 2013A Subtotal Projects Revolving Fund $ 149,897 $ 8,249 $ 63,763 $ 2,416 $ 2,408,351 $ 601,128 $ 105,370 81,513 24,648 11,079 14,470 423,294 354 1,700,533 $ 149,897 $ 89,762 $ 63,763 $ 2,416 $ 2,882,196 $ 2,301,661 $ 105,370 Liabilities: Interfundpayable $ - $ 56,128 $ $ $ 56,128 $ - $ Accounts payable - - 2,750 143,429 Total liabilities 56,128 58,878 143,429 Deferred inflows of resources: Unavailable Resources 81,513 462,413 Fund balance (deficit): Restricted 149,897 - 63,763 2,416 2,408,784 - Assigned - - - - 2,158,232 105,370 Unassigned (47,879) - (47,879) - - Total fund balance (deficit) 149,897 (47,879) 63,763 2,416 2,360,905 2,158,232 105,370 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 149,897 $ 89,762 $ 63,763 $ 2,416 $ 2,882,196 $ 2,301,661 $ 105,370 70 Statement 13 Page 2 of 3 Capital Projects (Continued) Tax Closed Surface Birch Street Increment Bond Street Water Hodgson Road Financing Fund Reconstruction Sealcoating Management Improvement 1-5 $ 564,295 $ 620,865 $ 529,065 $ 518,189 $ 15,677 $ 135,688 1,500 - 834,407 - 48 298 492 - 7,618 818 119,764 - 128,214 4,477 $ 1,400,358 $ 740,629 $ 529,065 $ 659,998 $ 15,677 $ 135,688 $ - $ - $ - $ - $ $ 8,379 34,384 8,379 34,384 1,607 119,764 135,832 1,398,751 620,865 520,686 489,782 15,677 135,688 1,398,751 620,865 520,686 489,782 15,677 135,688 $ 1,400,358 $ 740,629 $ 529,065 $ 659,998 $ 15,677 $ 135,688 71 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Assets Cash and investments Due from other governmental units Interfund receivable Taxes receivable: Delinquent Due from county Delinquent tax increment Special assessments receivable: Delinquent Noncurrent Due from county Long-term notes receivable Prepaid items Total assets Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Capital Projects (Continued) Tax Tax Office Increment Increment Equipment Legacy Woods Financing Financing Dedicated I35E Revolving Edge Traffic 1-10 1-11 Parks Interchange Fund Improvement Signal $ 187,194 $ 16,602 $ 226,347 $ 269,578 $ 527,265 $ 166,105 $ 187,194 $ $ 16,602 $ 226,347 $ 269,578 $ 527,265 $ 166,105 Liabilities: Interfund payable $ - $ 770,196 $ $ - $ Accounts payable - 24,243 - 633 Salaries payable - - Contracts and retainage payable - 79,638 Advances from other funds 460,881 Unearned Revenue - Total liabilities 770,196 460,881 24,243 80,271 Deferred inflows of resources: Unavailable Resources Fund balance (deficit): Nonspendable - - Restricted - Committed - - Assigned 187,194 - - 202,104 269,578 527,265 85,834 Unassigned - (770,196) (444,279) - - Total fund balance (deficit) 187,194 (770,196) (444,279) 202,104 269,578 527,265 85,834 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 187,194 $ $ 16,602 $ 226,347 $ 269,578 $ 527,265 $ 166,105 72 Statement 13 Page 3 of 3 Capital Projects (Continued) Permanent Fund Otter Lake 21st Ave Capital Foxborough Road Ext Ext Projects Environment 1-13 1-13 Subtotal Fund Total 2013 $ 293,961 $ - $ 4,777,329 $ 121,475 $ 7,437,378 1,500 - 1,500 2,534,940 2,534,940 24,648 48 11,127 298 298 8,110 22,580 248,796 672,090 4,477 4,831 225,000 1,710 $ 293,961 $ - $ 7,575,498 $ 121,475 $ 10,936,102 $ - $ 8,083 $ 778,279 $ $ 834,407 2,630 21,372 235,070 244,963 - 240 63,503 143,141 143,141 - 460,881 460,881 - 1,765 66,133 29,455 1,617,371 1,685,397 257,203 719,616 100,000 101,710 21,475 2,655,259 - - - 121,075 227,828 - 6,944,854 6,944,854 - (29,455) (1,243,930) - (1,291,809) 227,828 (29,455) 5,700,924 121,475 8,531,089 $ 293,961 $ - $ 7,575,498 $ 121,475 $ 10,936,102 73 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2013 Revenue: General property taxes Special assessments Charges for services Investment earnings Net increase (decrease) in fair value of investments Total revenue Special Revenue Debt Service Economic Special Certificates Improvement Improvement Development Cable TV Program Revenue of Bonds of Bonds of Authority Fund Recreation Subtotal Indebtedness 2002A 2002B $ - $ - $ $ 162,540 $ - $ 454 9,559 - 10,659 165,975 176,634 - - - 93 1,480 1,573 1,933 1,825 983 (134) (2,053) (2,187) (2,659) (2,535) (1,278) 10,618 165,402 176,020 162,268 8,849 (295) Expenditures: Current: General government 789 - 789 Parks, recreation and forestry 160,544 160,544 Debt service: Principal - - 149,000 30,000 265,000 Interest and fiscal charges 5,485 4,465 7,354 Bond issuance costs - - - - Total expenditures 789 160,544 161,333 154,485 34,465 272,354 Revenue over (under) expenditures (789) 10,618 4,858 14,687 7,783 (25,616) (272,649) Other financing sources (uses): Transfer in 789 789 Transfer out - (10,000) (10,000) Payment on refunding bond - - Total other financing sources (uses) 789 - (10,000) (9,211) Net increase (decrease) in fund balance Fund balance (deficit) - Beginning of year Fund balance (deficit) - December 31 10,618 (5,142) 5,476 7,783 (25,616) (272,649) 225,000 117,309 342,309 145,481 213,180 342,581 $ 225,000 $ 10,618 $ 112,167 $ 347,785 $ 153,264 $ 187,564 $ 69,932 74 Statement 14 Page 1 of 3 Debt Service (Continued) Improvement Tax Utility CIP Refunding Improvement Improvement Abatement Revenue Refunding Bonds of Bonds of Bonds of Bonds Bonds Bonds 2003A 2003B 2005B 2006C 2006D 2006E $ - $ 23,705 $ 134,176 $ 244,269 $ - $ 456,904 28,356 5,918 52,126 429 15,648 832 1,614 367 786 867 314 5,775 (2,075) (496) (874) (1,108) (409) (7,825) 27,895 29,494 186,214 244,457 15,553 455,686 50,000 30,000 425,000 125,000 60,000 355,000 9,744 2,778 53,478 99,701 15,103 84,931 2,750 - - - - - 62,494 32,778 478,478 224,701 75,103 439,931 (34,599) (3,284) (292,264) 19,756 (59,550) 15,755 347,600 71,724 (435,000) - (435,000) 347,600 71,724 (469,599) (3,284) 55,336 19,756 12,174 15,755 595,880 56,898 408,511 189,166 83,405 817,950 $ 126,281 $ 53,614 $ 463,847 $ 208,922 $ 95,579 $ 833,705 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2013 Revenue: General property taxes Tax increments Special assessments Charges for services Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government Public works Community development Capital outlay: Public safety Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Issuance of debt Payment on refunding bond Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - Beginning of year Fund balance (deficit) - December 31 Debt Service (Continued) Capital Projects TIF Bonds 2007A 285,000 134,757 419,757 (419,757) 416,026 Improvement and Utility Revenue Refunding Bonds 2010 Improvement Improvement Bonds of Bonds of 2012A 2013A $ $ 45,529 (6) 45,529 (6) 95,000 22,225 14,387 117,225 14,387 (71,696) (14,393) 78,438 416,026 78,438 (3,731) (71,696) 64,045 153,628 23,817 (282) 760 (17) Debt Service Subtotal Capital Capital Improvement Equipment Projects Revolving Fund $ 1,021,594 $ - $ 158,851 15,224 (19,282) 743 1,176,387 1,869,000 440,021 17,137 2,326,158 743 (1,149,771) 1,673 1,673 2,416 913,788 1,673 (435,000) 480,461 (669,310) 6,642 (9,283) 186,751 1,325 (1,940) 674 184,110 59 7,044 216,146 72 192,710 223,262 192,710 (39,152) (192,651) 16,727 193,000 209,727 (39,152) 17,076 3,030,215 2,197,384 88,294 $ 149,897 $ (47,879) $ 63,763 $ 2,416 $ 2,360,905 $ 2,158,232 $ 105,370 76 Statement 14 Page 2 of 3 Capital Projects (Continued) Closed Surface Birch Street Tax Increment Bond Street Water Hodgson Road Financing Fund Reconstruction Sealcoating Management Improvement 1-5 $ - $ - $ $ 1,172 15,116 120,010 13,588 6,031 8,205 9,969 (19,541) (8,417) (11,689) (11,689) - 17,238 - 155 (216) 37,254 1,087 (1,509) (4,781) 12,730 13,754 118,290 (61) 36,832 26,473 38 457,715 40,987 600 26,473 38 457,715 40,987 600 (31,254) 12,692 (443,961) 77,303 (61) 36,232 490,000 490,000 (31,254) 12,692 46,039 77,303 (61) 36,232 1,430,005 608,173 474,647 412,479 15,738 99,456 $ 1,398,751 $ 620,865 $ 520,686 $ 489,782 $ 15,677 $ 135,688 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2013 Capital Projects (Continued) Office Tax Increment Tax Increment Equipment Legacy Woods Financing Financing Dedicated I35E Revolving Edge 1-10 1-11 Parks Interchange Fund Improvement Revenue: General property taxes $ - $ - $ - $ - $ - $ - Tax increments 142,736 85,829 Special assessments - - Charges for services - - - - Investment earnings 2,461 - 32 2,437 2,658 5,302 Net increase (decrease) in fair value of investments (3,527) (43) (3,430) (3,716) (7,409) Refunds - - - - - Miscellaneous - - 16,204 - - Total revenue 141,670 85,829 16,193 (993) (1,058) (2,107) Expenditures: Current: General government: - - Public works - - 71,428 25,044 Parks, recreation and forestry - - - - Community development 1,014 7,432 Capital outlay: General government - - - 6,053 - Public safety Debt service: Principal Interest and fiscal charges - - 14,880 - - Bond issuance costs - Total expenditures 1,014 7,432 14,880 71,428 6,053 25,044 Revenue over (under) expenditures 140,656 78,397 1,313 (72,421) (7,111) (27,151) Other financing sources (uses): Transfer in - - 50,000 - 25,000 - Transfer out (142,736) (85,000) - - Sale of property - - - - - Issuance of debt - - Premium on bonds issued - - - - Payment on refunding bond - Total other financing sources (uses) (142,736) (85,000) 50,000 - 25,000 - Net increase (decrease) in fund balance (2,080) (6,603) 51,313 (72,421) 17,889 (27,151) Fund balance (deficit) - Beginning of year 189,274 (763,593) (495,592) 274,525 251,689 554,416 Fund balance (deficit) - December 31 $ 187,194 $ (770,196) $ (444,279) $ 202,104 $ 269,578 $ 527,265 78 Statement 14 Page 3 of 3 Capital Projects (Continued) Permanent Fund Otter Lake 21st Ave Capital Foxborough Traffic Road Ext Extension Projects Environment Signal 1-13 1-13 Subtotal Fund Total 2013 $ $ $ $ - $ - $ 1,021,594 - 265,819 - 265,819 136,298 295,149 - - - - - 176,634 3,360 1,784 - 65,036 1,175 83,008 (4,798) (2,340) (89,547) (1,636) (112,652) - - - 17,238 - 17,238 - - - 203,629 11,400 215,029 (1,438) (556) - 598,473 10,939 1,961,819 - - - 33,517 34,306 375,975 391,501 29,455 1,608,289 - 1,608,289 - - - - - 160,544 - - - 9,046 - 9,046 6,053 - 6,053 192,782 - 192,782 - - - - 1,869,000 - - 14,880 - 454,901 - 17,137 375,975 391,501 29,455 1,864,567 - 4,352,058 (377,413) (392,057) (29,455) (1,266,094) 10,939 (2,390,239) - - 565,000 - 1,479,577 - - (227,736) - (237,736) - - 16,727 - 16,727 613,327 - 806,327 - 808,000 6,558 - 6,558 - 6,558 - - (435,000) - 619,885 - 1,166,876 - 1,638,126 (377,413) 227,828 (29,455) (99,218) 10,939 (752,113) 463,247 - - 5,800,142 110,536 9,283,202 85,834 $ 227,828 $ (29,455) $ 5,700,924 $ 121,475 $ 8,531,089 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND - PROGRAM RECREATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2013 Statement 15 2013 Original Final Budget Budget Actual Variance with Final Budget Positive (Negative) Revenue: Charges for services: Recreation fees $ 198,125 $ 198,125 $ 165,975 $ (32,150) Investment earnings - 1,480 1,480 Change in market value - - (2,053) (2,053) Total revenue 198,125 198,125 165,402 (30,670) Expenditures: Current: Personal services 71,180 71,180 52,218 18,962 Supplies 51,675 51,675 73,185 (21,510) Other services and charges 5,000 5,000 348 4,652 Contractual services 43,150 43,150 34,793 8,357 Capital outlay 8,000 8,000 8,000 Total expenditures 179,005 179,005 160,544 18,461 Other financing sources (uses): Transers out (10,000) 10,000 Net increase (decrease) in fund balance $ 19,120 $ 19,120 (5,142) $ (12,209) Fund balance - January 1 117,309 Fund balance - December 31 $ 112,167 80 Fiduciary Funds Agency Fund Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. The City maintained the following Agency fund during the year: Contractor's Deposits — to account for pass-through costs relating to prospective developers. CITY OF LINO LAKES, MINNESOTA Statement 16 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS December 31, 2013 Assets Cash and investments Liabilities Deposits payable Balance Balance January 1, December 31, 2013 Additions Deductions 2013 $ 510,181 $ 261,093 $ 101,796 $ 669,478 $ 510,181 $ 261,093 $ 101,796 $ 669,478 81 SUPPLEMENTARY FINANCIAL AND OTHER INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2013 Interest Rates Dated Final Maturity Date General Obligation Bonds: 2010A Equipment Certificates 2.00%-3.00% 4/1/2010 12/31/2013 2011A Equipment Certificates 1.00% 2/14/2011 12/31/2014 2012A Equipment Certificates 1.00% 2/1/2012 12/31/2015 2013A Equipment Certificates 1.00% 2/1/2013 12/31/2016 G.O. Tax Abatement Bonds, Series 2006C 4.00%-4.30% 8/15/2006 2/1/2023 G.O. Utility Revenue Bonds, Series 2006D 4.00%-4.15% 8/15/2006 2/1/2017 G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/2006 2/1/2018 G.O. Tax Increment Bonds, Series 2007A 4.00%-4.125% 7/15/2007 2/1/2024 G.O. Refunding Bonds, Series 2012A 1.00%-2.00% 11/15/2012 2/1/2024 Total General Obligation Bonds Special Assessment Bonds: G. O. Improvement Bonds of2002A 3.00%-4.10% 8/1/2002 2/1/2013 G. O. Improvement Bonds of 2002B 3.20%-5.55% 8/1/2002 2/1/2013 G. O. Improvement Refunding Bonds of 2003A 2.00%-4.25% 12/1/2003 2/1/2019 G. O. Improvement Bonds of 2003B 3.20%-5.60% 12/1/2003 2/1/2014 G. O. Improvement Bonds of2005A 4.35%-5.15% 11/1/2005 2/1/2021 G. O. Improvement Refunding Bonds of 2005B 3.75%-5.00% 11/1/2005 2/1/2015 G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A 2.00%-3.00% 7/9/2010 2/1/2020 G.O. Improvement Bonds, Series 2013A 1.25%-4.00% 7/15/2013 2/1/2024 Total General Improvement Bonds with special assessments pledged Other Long -Term Debt: Note Payable - Anoka County - 2009A Total City indebtedness 82 4.00%-3.70% 8/01/2009 8/1/2024 Exhibit 1 Prior Years Original Issue Payments Principal Interest Payable 2013 Payable Due Due 1/1/13 Issued Payments 12/31/13 In 2014 In 2014 $ 336,000 $ 276,000 $ 60,000 $ - $ 60,000 $ $ - $ - 170,000 89,000 81,000 - 40,000 41,000 41,000 410 150,000 - 150,000 49,000 101,000 50,000 1,010 193,000 - 193,000 - 193,000 63,000 3,699 2,460,000 115,000 2,345,000 - 125,000 2,220,000 140,000 91,020 570,000 255,000 315,000 - 60,000 255,000 60,000 9,293 2,990,000 705,000 2,285,000 - 355,000 1,930,000 360,000 70,000 4,215,000 820,000 3,395,000 - 285,000 3,110,000 345,000 118,426 2,015,000 2,015,000 - 2,015,000 70,000 19,213 13,099,000 2,260,000 10,646,000 193,000 974,000 9,865,000 1,129,000 313,071 645,000 615,000 30,000 - 30,000 - - 2,110,000 1,845,000 265,000 - 265,000 - - 2,090,000 1,605,000 485,000 - 485,000 - - 250,000 185,000 65,000 - 30,000 35,000 35,000 980 5,550,000 1,700,000 3,850,000 - 345,000 3,505,000 365,000 168,360 3,755,000 2,485,000 1,270,000 425,000 845,000 425,000 31,625 1,000,000 185,000 815,000 - 95,000 720,000 95,000 19,700 615,000 - 615,000 - 615,000 - 18,737 16,015,000 8,435,000 6,780,000 615,000 1,675,000 5,720,000 920,000 239,402 4,260,000 - 3,695,000 - - 3,695,000 995,000 114,951 $ 35,114,000 $ 12,435,000 $ 21,121,000 $ 808,000 $ 2,649,000 $ 19,280,000 $ 3,044,000 $ 667,424 83 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2013 G. O. G. O. G. O. G. O. Improvement Tax Year of Equipment Equipment Equipment Improvement Improvement Refunding Abatement Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Bonds Collection of 2011A of 2012A of 2013A of 2003B of 2005A of 2005B 2006C 2013/2014 $ 43,481 $ 53,561 $ 70,034 $ 23,781 $ 566,197 $ 463,050 $ 255,381 2014/2015 - 54,086 69,615 - 567,247 264,458 2015/2016 - 68,933 572,497 278,140 2016/2017 - 571,184 285,411 2017/2018 - - - - 574,072 297,263 2018/2019 - - - - 574,907 - 313,472 2019/2020 579,639 323,316 2020/2021 - 337,517 2021/2022 - - - - - - 350,447 2022/2023 - - - - - - 2023/2024 - - - - - $ 43,481 $ 107,647 $ 208,582 $ 23,781 $ 4,005,743 $ 463,050 $ 2,705,405 84 Exhibit 2 G. O. G.O. CIP G. O. Improvement and G.O. Refunding TIF Utility Revenue G.O. Improvement Bonds Bonds Refunding Bonds Refunding Bonds Bonds 2006E 2007A 2010A 2012A 2013A Total $ 443,940 $ 493,843 $ 121,433 $ 101,149 $ 10,119 $ 2,645,969 449,820 495,103 124,688 257,620 9,331 2,291,968 460,110 500,983 121,537 266,406 8,544 2,277,150 464,100 506,023 118,387 259,128 7,158 2,211,391 - 268,723 120,488 261,868 5,772 1,528,186 - 271,243 117,180 258,849 3,882 1,539,533 278,593 124,372 182,417 1,992 1,490,329 285,313 - 179,687 4,722 807,239 - 291,403 - 181,949 1,992 825,791 - 301,855 - 183,899 485,754 - 306,127 - 180,330 486,457 $ 1,817,970 $ 3,999,209 $ 848,085 $ 2,313,302 $ 53,512 $ 16,589,767 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 2013 Bonds payable Future interest payable Totals Payments to maturity: 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Equipment Certificates 2011A Equipment Equipment Certificates Certificates 2012A 2013A G. O. Improvement Bonds 2003B $ 41,000 $ 101,000 $ 193,000 $ 35,000 410 1,520 5,649 980 G. O. Improvement Bonds 2005A $ 3,505,000 763,741 $ 41,410 $ 102,520 $ 198,649 $ 35,980 $ 4,268,741 $ 41,410 $ 51,010 $ 51,510 66,699 66,300 65,650 $ 35,980 $ 533,361 529,736 530,236 534,611 532,861 534,633 534,784 538,519 $ 41,410 $ 102,520 $ 198,649 $ 35,980 $ 4,268,741 86 Exhibit 3 G. O. G.O. G.O. G.O. G.O. Improvement Tax Utility CIP G.O. Improvement and Refunding Abatement Revenue Refunding TIF Utility Revenue Bonds Bonds Bonds Bonds Bonds Refunding Bonds 2005B 2006C 2006D 2006E 2007A 2010A $ 845,000 $ 2,220,000 $ 255,000 $ 1,930,000 $ 3,110,000 $ 720,000 42,125 543,492 21,831 200,000 636,103 77,375 $ 887,125 $ 2,763,492 $ 276,831 $ 2,130,000 $ 3,746,103 $ 797,375 $ 456,625 $ 231,020 $ 69,292 $ 430,000 $ 463,426 $ 114,700 430,500 240,043 66,832 415,600 464,326 117,250 248,381 69,254 420,800 469,526 114,250 260,858 71,453 430,100 473,926 111,250 - 267,464 - 433,500 252,126 113,175 278,327 254,326 110,025 293,233 261,026 116,725 302,183 267,126 315,103 272,504 326,880 282,016 285,775 $ 887,125 $ 2,763,492 $ 276,831 $ 2,130,000 $ 3,746,103 $ 797,375 87 CITY OF LINO LAKES, MINI DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED) December 31, 2013 Exhibit 3 Note G.O. Payable - G.O. Improvement Anoka Refunding Bonds Bonds County - 2012A 2013A 2009A Totals Bonds payable $ 2,015,000 $ 615,000 $ 3,695,000 $ 19,280,000 Future interest payable 129,865 128,057 611,845 3,162,993 Totals $ 2,144,865 $ 743,057 $ 4,306,845 $ 22,442,993 Payments to maturity: 2014 $ 89,212 $ 18,737 $ 1,109,951 $ 3,711,423 2015 238,632 77,565 460,345 3,158,639 2016 247,618 76,815 465,945 2,708,475 2017 241,311 75,780 470,945 2,670,234 2018 244,660 74,460 475,345 2,393,591 2019 242,590 72,900 483,195 1,975,996 2020 170,520 71,100 485,070 1,932,458 2021 168,560 69,000 356,049 1,701,437 2022 166,400 71,500 - 825,507 2023 169,001 68,900 - 846,797 2024 166,361 66,300 - 518,436 $ 2,144,865 $ 743,057 $ 4,306,845 $ 22,442,993 88 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 2013 Exhibit 4 Coverage Amount General Liability: Bodily Injury/Property Damage $ 1,500,000 Personal Injury/Police Professional Liability 1,500,000 Fire Legal Liability 50,000 Medical Expense Occurrence Limit 1,000 Medical Expense Aggregate 10,000 Property Damage ($500 Deductible) Property: Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 30,331,521 Faithful Performance Blanket Bond 500,000 Storage Tank Liability 250,000 Rented/Leased Equipment ($1,000 Deductible) 500,000 Public Official and Employee Liability ($1,000 Deductible Each Occurrence) 1,500,000 Automotive: Bodily Injury and Property Damage 1,500,000 Comprehensive and Collision Actual Cash Value Uninsured Motorists 200,000 Workmen's Compensation Statutory Umbrella Liability 1,000,000 Crime - Theft Disappearance and Destruction ($1,000 Deductible) 250,000 89 CITY OF LINO LAKES, MINNESOTA Exhibit 5 TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Tax Capacity Tax Capacity Values Values 2012/2013 2011/2012 Taxable Valuations: Total $ 16,601,721 $ 17,999,453 Fiscal Disparities: Distribution 2,620,748 2,762,556 Contribution (1,205, 912) (1,246, 881) Less: Captured Tax Increment Value (234,159) (279,219) $ 17,782,398 $ 19,235,909 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes Levied: Revenue $ 7,190,538 40.964 $ 7,192,818 37.501 Bond and Interest 1,025,090 5.810 1,034,441 5.393 Totals $ 8,215,628 46.774 $ 8,227,259 42.894 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution. 90 III. STATISTICAL SECTION Statistical Section (Unaudited) This part of the Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about overall financial health. The following are the categories of the various schedules that are included in this section. Financial Trends Tables 1-4 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Tables 5-8 These schedules contain information to help the reader assess the City's most significant revenue sources. Debt Capacity Tables 9-11 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information Tables 12-13 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating information Tables 14-16 These schedules contain service and infrastructure data to help the reader understand how the information the City's financial report relates to the services the City provides and the activities it performs. CITY OF LINO LAKES, MINNESOTA NET POSITION BY COMPONENT, LAST TEN FISCAL YEARS (accrual basis of accounting) Table 1 Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Governmental Activities Net Investment in Capital Assets $ 28,807,262 $ 25,460,528 $ 29,549,174 $ 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217 $ 24,600,103 $ 22,166,342 $ 22,241,821 Restricted 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112 11,000,033 Unrestricted 16,249,541 13,577,071 14,516,466 6,339,528 10,790,359 15,926,322 16,738,885 13,463,210 17,639,038 16,849,636 Total Governmental Activities Net Position $ 48,101,855 $ 51,088,083 $ 54,770,148 $ 53,453,148 $ 49,133,900 $ 48,741,249 $ 47,729,127 $ 49,662,116 $ 51,400,492 $ 50,091,490 Business -Type Activities Net Investment in Capital Assets $ 26,713,498 $ 28,342,832 $ 29,485,942 $ 29,836,775 $ 30,372,670 $ 30,071,840 $ 29,648,461 $ 29,216,866 $ 28,798,095 $ 28,423,284 Unrestricted 4,744,875 5,572,338 6,880,547 8,063,983 9,028,778 10,112,207 10,728,626 11,201,362 12,102,013 12,999,182 Total Business -Type Activities Net Position $ 31,458,373 $ 33,915,170 $ 36,366,489 $ 37,900,758 $ 39,401,448 $ 40,184,047 $ 40,377,087 $ 40,418,228 $ 40,900,108 $ 41,422,466 Primary Government Net Investment in Capital Assets $ 55,520,760 $ 53,803,360 $ 59,035,116 $ 66,625,928 $ 58,845,535 $ 53,472,293 $ 52,210,678 $ 53,816,969 $ 50,964,437 $ 50,665,105 Restricted 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112 11,000,033 Unrestricted 20,994,416 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 27,467,511 24,664,572 29,741,051 29,848,818 Total Primary Government Net Position $ 79,560,228 $ 85,003,253 $ 91,136,637 $ 91,353,906 $ 88,535,348 $ 88,925,296 $ 88,106,214 $ 90,080,344 $ 92,300,600 $ 91,513,956 91 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 2008 Expenses Governmental activities: General Government $ 2,524,387 $ 2,941,279 $ 2,886,825 $ 2,197,672 $ 2,323,358 Public Safety 2,799,294 3,091,174 3,516,376 3,730,504 4,051,162 Public Services 7,254,708 9,187,436 3,871,968 10,580,560 7,608,626 Parks, Recreation and Forestry 1,196,096 799,335 1,162,458 1,357,133 919,948 Conservation of Natural Resources 116,869 150,092 156,592 183,420 184,624 Community Development 420,874 383,211 691,880 1,122,802 1,114,158 Interest on long-term debt 748,832 797,341 926,021 980,849 1,045,781 Total governmental activities expenses $ 15,061,060 $ 17,349,868 $ 13,212,120 $ 20,152,940 $ 17,247,657 Business -type activities: Water $ 914,039 $ 876,592 $ 976,575 $ 1,170,902 $ 1,020,770 Sewer 1,130,994 1,217,825 1,228,123 1,298,963 1,287,943 Total business -type activities 2,045,033 2,094,417 2,204,698 2,469,865 2,308,713 Total primary government expenses $ 17,106,093 $ 19,444,285 $ 15,416,818 $ 22,622,805 $ 19,556,370 Program Revenues Governmental activities: Charges for services: General Government $ 122,861 $ 111,480 $ 88,924 $ 91,646 $ 79,844 Public Safety 1,049,858 998,210 844,514 1,078,995 1,296,418 Public Works 454,191 434,087 420,741 389,489 413,040 Parks, Recreation and Forestry 242,857 196,951 188,439 185,803 187,285 Conservation of Natural Resources 11,763 4,873 6,854 4,559 3,660 Community Development 28,952 26,985 20,530 15,839 11,623 Operating grants and contributions 677,079 761,924 643,749 851,791 693,065 Capital grants and contributions 7,515,238 10,128,024 5,963,204 7,189,346 1,094,789 Total governmental activities program revenues $ 10,102,799 $ 12,662,534 $ 8,176,955 $ 9,807,468 $ 3,779,724 Business -type activities: Charges for services: Water $ 979,075 $ 1,031,175 $ 1,175,172 $ 1,215,763 $ 1,058,493 Sewer 1,280,652 1,361,759 1,391,702 1,446,112 1,472,093 Operating grants and contributions Capital grants and contributions 1,589,419 1,733,775 1,535,631 80,750 10,117 Total business -type activities program revenues 3,849,146 4,126,709 4,102,505 2,742,625 2,540,703 Total primary government program revenues $ 13,951,945 $ 16,789,243 $ 12,279,460 $ 12,550,093 $ 6,320,427 Net (Expense)/Revenue Governmental activities Business -type activities Total primary government net expense $ (4,958,261) $ (4,687,334) $ (5,035,165) $ (10,345,472) $ (13,467,933) 1,804,113 2,032,292 1,897,807 272,760 231,990 $ (3,154,148) $ (2,655,042) $ (3,137,358) $ (10,072,712) $ (13,235,943) General Revenues and Other Changes in Net Position Governmental activities: Property taxes $ 6,630,279 $ 7,383,415 $ 8,269,944 $ 8,785,280 $ 9,424,697 Unrestricted grants and contributions 256,877 129,607 Unrestricted investment earnings 221,302 433,387 713,794 864,578 576,071 Change in market value Gain on sale of capital assets 1,280,957 33,217 17,424 12,512 Miscellaneous 160,955 Transfers (303,108) (304,195) (299,725) (895,687) (994,202) Total governmental activities $ 7,829,430 $ 7,673,562 $ 8,717,230 $ 9,028,472 $ 9,148,685 Business -type activities: Unrestricted investment earnings $ 34,833 $ 120,310 $ 253,787 $ 365,822 $ 274,498 Change in market value - Transfers 303,108 304,195 299,725 895,687 994,202 Total business -type activities 337,941 424,505 553,512 1,261,509 1,268,700 Total primary government $ 8,167,371 $ 8,098,067 $ 9,270,742 $ 10,289,981 $ 10,417,385 Change in Net Position Governmental activities $ 2,871,169 $ 2,986,228 $ 3,682,065 $ (1,317,000) $ (4,319,248) Business -type activities 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690 Total primary government change in net position $ 5,013,223 $ 5,443,025 $ 6,133,384 $ 217,269 $ (2,818,558) Table 2 (Continued) Fiscal Year 2009 2010 2011 2012 2013 2,201,439 $ 1,987,415 $ 1,990,137 $ 1,883,961 $ 1,566,388 4,299,366 3,971,261 4,019,101 4,046,415 3,950,197 4,027,553 3,968,063 8,110,979 5,584,283 4,540,888 1,313,560 1,124,907 1,218,472 1,210,867 835,783 215,607 197,571 139,544 184,051 141,204 1,005,997 1,105,254 617,747 430,121 404,726 928,668 1,064,172 927,535 837,755 951,842 $ 13,992,190 $ 13,418,643 $ 17,023,515 $ 14,177,453 $ 12,391,028 $ 1,089,569 $ 1,045,901 $ 966,643 $ 949,121 $ 927,800 1,432,107 1,466,847 1,638,063 1,527,637 1,584,395 2,521,676 2,512,748 2,604,706 2,476,758 2,512,195 $ 16,513,866 $ 15,931,391 $ 19,628,221 8 16,654,211 $ 14,903,223 $ 101,741 $ 98,403 $ 103,687 $ 129,151 $ 93,118 725,747 691,005 713,985 642,745 697,584 428,174 427,223 382,287 476,296 456,024 165,994 177,984 210,976 191,832 175,978 3,858 4,153 4,392 19,297 1,347 8,667 14,148 5,138 16,940 28,118 682,797 617,450 593,798 450,179 527,368 1,357,015 1,388,984 7,347,613 5,125,693 941,960 $ 3,473,993 $ 3,419,350 $ 9,361,876 $ 7.052,133 $ 2,921,497 $ 1,365,817 $ 1,087,013 $ 1,090,104 $ 1,371,809 $ 1,208,742 1,502,164 1,498,218 1,494,188 1,505,781 1,516,397 62,710 - - - - 8,769 8,709 1,462 20,018 883 2,939,460 2,593,940 2,585,754 2,897,608 2,726,022 $ 6,413,453 $ 6,013,290 $ 11,947,630 $ 9,949,741 $ 5,647,519 $ (10,518,197) $ (9,999,293) $ (7,661,639) $ (7,125,320) $ (9,469,531) 417,784 81,192 (18,952) 420,850 213,827 $ (10,100,413) $ (9,918,101) $ (7,680,591) $ (6,704,470) $ (9,255,704) $ 9,808,324 $ 8,764,183 $ 8,768,805 $ 8,610,709 $ 8,563,595 11,321 4,389 4,072 4,941 4,442 429,325 225,677 251,250 202,828 216,488 (270,692) 12,644 - 37,579 4,175 - (136,068) (7,078) 66,122 41,043 (353,304) $ 10,125,546 $ 8,987,171 $ 9,127,828 $ 8,863,696 $ 8,160,529 228,747 $ 104,770 $ 126,215 $ 102,073 $ 113,402 (158,175) 136,068 7,078 (66,122) (41,043) 353,304 364,815 111,848 60,093 61,030 308,531 $ 10,490,361 $ 9,099,019 $ 9,187,921 $ 8,924,726 $ 8,469,060 $ (392,651) $ (1,012,122) $ 1,466,189 $ 1,738,376 $ (1,309,002) 782,599 193,040 41,141 481,880 522,358 $ 389,948 $ (819,082) $ 1,507,330 $ 2,220,256 $ (786,644) 93 CITY OF LINO LAKES, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Table 3 General Fund Reserved Unreserved Nonspendable Unassigned Total general fund All Other Governmental Funds Reserved reported in: Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds Unreserved reported in: Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds Total all funds Fiscal Year 2004 $ 142,492 5,067,973 2005 $ 148,652 5,300,156 $ 5,210,465 $ 5,448,808 $ 1,718 957,112 2,556,300 57,616 6,241,408 452,972 $ 1,763 957,112 7,371,359 100,000 74,716 7,348,375 853 2006 $ 153,009 5,337,225 2007 $ 181,759 5,356,272 $ 5,490,234 $ 5,538,031 $ 1,813 957,112 3,992,952 100,000 82,385 5,525,508 5,378 $ 226,921 885,825 3,925,402 100,000 100,955 8,395,827 17,023 $ 10,267,126 $ 15,854,178 $ 10,665,148 $ 13,651,953 $ 15,477,591 94 $ 21,302,986 $ 16,155,382 $ 19,189,984 Table 3 (Continued) Fiscal Year 2008 $ 190,825 5,393,316 2009 $ 196,568 5,191,396 $ 5,584,141 $ 5,387,964 $ 226,973 812,400 3,405,272 100,000 106,573 5,927,411 22,224 $ 227,176 736,772 3,457,349 100,000 93,956 11,611,835 (558,443) 15,824 $ 10,600,853 $ 15,684,469 2010 2011 $ 181,471 $ 5,445,334 165,079 5,440,101 $ 5,626,805 $ 5,605,180 $ 227,342 $ 658,875 2,986,102 100,000 110,471 12,537,841 (1,093,765) 12,676 906,010 2,658,010 110,568 10,808,268 (3,154,496) $ 15,539,542 $ 11,328,360 $ 16,184,994 $ 21,072,433 $ 21,166,347 $ 16,933,540 95 2012 180,786 5,053,031 $ 5,233,817 823,113 3,041,524 115,196 15,573,179 (3,262,728) $ 16,290,284 $ 21,524,101 2013 176,797 5,209,286 $ 5,386,083 101,710 3,651,550 121,075 15,710,702 (3,393,547) $ 16,191,490 $ 21,577,573 CITY OF LINO LAKES, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Table 4 Revenues Property Taxes Licenses and Permits Intergovernmental Special Assessments Charges for Services Fines and Forfeits Investment Earnings Net Increase (Decrease) in Fair Value of Investments Miscellaneous Total revenues Expenditures Current: General Government Public Safety Public Works Parks, Recreation and Forestry Conservation of Natural Resources Community Development Capital Outlay Debt Service Principal Interest and Fiscal Charges Bond Issuance Costs Total expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses) Sale of Property Proceeds from Issuance of Debt Premium on Bonds Issued Discount on Bonds Issued Payment to Refunded Bond Escrow Agent Loan Payable Reapportionment Transfer In Transfer Out Total other financing sources (uses) Net change in fund balances Fiscal Year 2004 $ 6,523,938 867,909 2,419,531 1,587,510 639,565 106,053 221,303 782,179 13,147,988 2005 $ 7,230,287 812,172 1,808,111 1,769,821 601,548 100,980 433,385 948,009 13,704,313 2006 $ 8,103,263 581,582 1,818,519 2,901,100 687,551 101,518 713,795 716,692 15,624,020 2007 $ 8,529,846 694,435 6,143,689 1,961,253 753,698 139,932 864,578 889,901 19,977,332 2,261,908 2,701,731 2,614,303 1,953,960 2,798,013 3,099,032 3,314,159 3,513,460 5,126,578 7,071,322 7,755,727 8,446,911 954,945 1,111,301 1,076,727 1,103,021 115,631 140,334 143,653 183,346 - 683,036 1,107,328 515,287 464,553 835,770 2,008,073 1,960,000 2,016,000 2,155,000 1,973,000 798,405 838,950 1,011,157 937,895 14,530,767 17,443,223 19,589,532 21,226,994 (1,382,779) (3,738,910) (3,965,512) (1,249,662) 1,280,957 1,604,000 (6,057) (1,170,000) 5,283,306 (5,586,414) 1,405,792 $ 23,013 Debt service as a percentage of noncapital expenditures 19.7% 96 280,269 9,412,000 176,231 2,651,469 (2,955,664) 28,818 6,327,000 450 (13,635) (7,225,000) 5,811,452 (6,111,177) 9,564,305 (1,182,092) $ 5,825,395 16.8% $ (5,147,604) 16.9% 54,037 4,375,000 (25,798) 2,900,249 (3,019,224) 4,284,264 $ 3,034,602 15.1% Table 4 (Continued) Fiscal Year 2008 $ 9,095,085 802,135 1,004,476 950,188 872,534 133,531 576,071 2009 $ 9,561,570 307,714 1,259,016 968,995 778,163 111,807 429,325 516,415 513,306 13,950,435 13,929,896 2010 $ 8,647,488 330,138 1,176,863 851,270 780,044 127,203 225,677 502,992 12,641,675 2011 $ 8,655,971 322,030 1,331,914 904,522 812,604 154,020 251,244 460,710 12,893,015 2,058,267 1,918,246 1,730,390 1,773,515 3,806,389 4,122,352 3,798,106 3,791,329 5,542,308 1,965,640 1,902,411 2,192,732 1,033,260 1,106,006 945,821 1,059,191 183,024 209,466 185,232 134,122 1,113,232 1,005,095 1,098,682 624,286 585,875 501,806 282,938 4,209,593 2012 $ 8,560,340 319,172 5,267,570 816,998 744,633 155,956 202,825 414,088 16,481,582 1,619,215 3,861,265 3,339,430 1,056,976 176,318 435,154 616,931 2013 $ 8,475,214 431,654 500,963 2,130,519 717,300 119,079 222,810 (276,276) 384,749 12,706,012 1,569,722 3,744,957 2,953,969 1,002,797 134,127 418,533 291,135 1,749,000 1,908,000 1,866,000 2,030,000 2,145,000 2,214,000 1,074,052 994,809 1,042,883 983,129 831,875 774,172 - - - - 47,054 17,137 17,145,407 13,731,420 12,852,463 16,797,897 14,129,218 (3,194,972) 198,476 (210,788) (3,904,882) 2,352,364 13,120,549 (414,537) 13,750 35,700 20,600 50,953 16,727 209,000 4,596,000 1,170,000 120,000 808,000 - 11,141 10,980 6,558 (965,000) (435,000) - - (565,000) 4,763,391 1,413,985 1,195,747 2,971,715 (4,796,159) (1,367,863) (1,127,625) (2,905,593) 189,982 4,688,963 304,702 (327,925) $ (3,004,990) 27.6% $ 4,887,439 $ 93,914 $ (4,232,807) 22.7% 23.7% 18.6% 4,175 2,165,000 1,979,457 (1,910,435) 2,238,197 $ 4,590,561 1,722,541 (1,650,817) 468,009 $ 53,472 22.1% 25.3% CITY OF LINO LAKES, MINNESOTA ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS Table 5 Payable Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Residential Property $ 12,252,347 14,055,076 15,825,619 17,605,080 18,382,645 18,919,087 17,978,917 16,214,698 14,743,557 13,693,905 Commercial/ Industrial Property $ 1,982,146 2,290,829 2,740,583 3,047,965 3,431,107 4,002,349 3,800,004 3,223,901 2,945,026 2,571,769 Source: Anoka County, Minnesota Assessors' Office Personal Property $ 259,194 274,956 271,665 288,290 279,102 275,496 291,904 303,964 310,870 336,047 Total Taxable Assessed Value $ 14,493,687 16,620,861 18,837,867 20,941,335 22,092,854 23,196,932 22,070,825 19,742,563 17,999,453 16,601,721 Note: The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. 98 Total Direct Tax Rate 42.29 42.22 41.40 38.99 38.97 38.73 37.91 42.04 42.89 46.77 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 of Tax Capacity) Table 6 City Direct Rate Overlapping Rates General Centennial Total Direct Obligation School Other and Debt Redevelopment Total District Anoka Taxing Total Overlapping Fiscal Year Basic Rate Service Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate 2004 $ 36.302 $ 5.985 $ - $ 42.287 $ 36.649 $ 35.221 $ 6.373 $ 78.243 $ 120.530 2005 36.838 5.385 - 42.223 37.486 33.080 6.696 77.262 119.485 2006 36.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226 2007 34.356 4.638 - 38.994 38.090 30.696 5.578 74.364 113.358 2008 34.560 4.407 - 38.967 35.258 31.078 6.956 73.292 112.259 2009 34.716 4.017 - 38.733 34.593 32.078 5.611 72.282 111.015 2010 34.086 3.819 - 37.905 37.285 35.189 5.879 78.353 116.258 2011 37.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966 2012 37.501 5.393 - 42.894 40.010 41.146 6.691 87.847 130.741 2013 40.964 5.810 - 46.774 43.681 44.411 6.940 95.032 141.806 Source: Anoka County Property Records and Tax Division Notes: The majority of Lino Lakes is served by Independent School District No. 12. Rates for debt service are based on each year's requirements. 99 CITY OF LINO LAKES, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO Table 7 Taxpayer 2013 2004 Percentage Percentage of Total of Total City City Taxable Taxable Taxable Taxable Net Tax Net Tax Net Tax Net Tax Capacity Rank Capacity Capacity Rank Capacity Target Corporation $ 210,824 1 1.27 % $ 252,988 1 1.66 % Lino Lakes Realty LLC 181,810 2 1.10 - - Xcel Energy 176,456 3 1.06 131,145 3 0.86 Moline Concrete Products 110,333 4 0.66 125,132 4 0.82 Kohl's Department Store 104,810 5 0.63 152,550 2 1.00 Taylor Corporation 97,230 6 0.59 99,752 6 0.65 Gargaro Properties LLC 85,908 7 0.52 - - Marmon/Keystone Corp 77,462 8 0.47 72,296 8 0.47 CenterPoint Energy 65,794 9 0.40 49,316 10 0.32 EOC Lino Lakes LLC 59,250 10 0.36 - - Lino Lakes Business Center 99,752 5 0.65 Individual 76,930 7 0.50 F&G Incorporated 69,126 9 0.45 Total Source: Anoka County $ 1,169,877 7.05 % 100 $ 1,128,987 7.38 % CITY OF LINO LAKES, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS. LAST TEN FISCAL YEARS Table 8 Taxes Levied for the Fiscal Year Fiscal Operating Debt Total Tax Year Tax Levy Tax Levy Levy Collected within the Fiscal Year of Levy Amount Percentage of Levy 2004 $ 5,623,542 $ 927,078 $ 6,550,620 $ 6,145,419 93.8% 2005 6,342,211 927,091 7,269,302 6,881,838 94.7% 2006 7,042,626 934,281 7,976,907 7,594,019 95.2% 2007 7,558,995 897,333 8,456,328 8,324,180 98.4% 2008 7,973,236 893,720 8,866,956 8,581,974 96.8% 2009 8,295,172 949,166 9,244,338 8,982,756 97.2% 2010 7,816,232 879,182 8,695,414 8,400,439 96.6% 2011 7,719,240 940,760 8,660,000 8,486,845 98.0% 2012 7,192,818 1,034,441 8,227,259 8,095,502 98.4% 2013 7,190,538 1,025,090 8,215,628 8,094,911 98.5% Notes: Current year levies and collections include State levy related credits (HACA and Market Value Credit). Does not include tax increment levies and collections. 101 Table 8 (Continued) Collections in Subsequent Years Total Collections to Date Amount Percentage Outstanding Percentage of Delinquent of Levy Levy Taxes Outstanding $ 48,430 $ 6,193,849 94.6% $ 356,771 5.4% 56,369 6,938,207 95.4% 331,095 4.6% 63,030 7,657,049 96.0% 319,858 4.0% 104,437 8,428,617 99.7% 27,711 0.3% 126,071 8,708,045 98.2% 158,911 1.8% 190,339 9,173,095 99.2% 71,243 0.8% 166,378 8,566,817 98.5% 128,597 1.5% 97,267 8,584,112 99.1% 75,888 0.9% 55,872 8,151,374 99.1% 75,885 0.9% - 8,094,911 98.5% 120,717 1.5% CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Table 9 Governmental Activities Business -Type Activities General General Special Other Obligation Total Fiscal Obligation Assessments Long -Term Revenue Primary Year Bonds Payable Debt Bonds Government 2004 $ 5,764,000 $ 11,580,000 $ $ 2,705,000 $ 20,049,000 2005 5,335,000 19,405,000 2,425,000 27,165,000 2006 7,177,000 13,940,000 4,410,000 25,527,000 2007 11,569,000 12,520,000 1,855,000 25,944,000 2008 11,184,000 11,365,000 - 1,530,000 24,079,000 2009 10,712,000 10,265,000 4,260,000 1,170,000 26,407,000 2010 10,141,000 9,175,000 4,260,000 795,000 24,371,000 2011 9,421,000 7,985,000 3,695,000 405,000 21,506,000 2012 10,331,000 7,095,000 3,695,000 21,121,000 2013 9,610,000 5,975,000 3,695,000 - 19,280,000 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. 103 Table 9 (Continued) (1) Less: Amounts Percentage Percentage Available in Debt Net of Assessed of Personal Per Service Funds Bonded Debt Market Value Income Capita $ 2,556,300 $ 17,492,700 7,371,359 19,793,641 3,992,952 21,534,048 3,925,402 22,018,598 3,405,272 20,673,728 3,457,349 22,949,651 2,986,102 21,384,898 2,638,129 18,867,871 3,035,557 18,085,443 3,357,196 15,922,804 1.22 2.69 $ 1,071 1.29 2.84 1,379 1.24 2.98 1,293 1.14 2.90 1,307 1.02 2.65 1,205 1.08 3.00 1,301 1.07 2.73 1,206 1.05 2.31 1,049 1.10 2.11 1,024 1.18 N/A 931 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2012 Table 10 Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable Debt Overlapping: Anoka County $ 156,865,958 6.6% $ 10,288,289 ISD 12 50,645,000 46.5% 23,534,395 ISD 624 92,180,000 3.5% 3,197,863 ISD 831 26,740,000 7.6% 2,043,174 Metropolitan Council 1,396,829,257 0.6% 8,274,700 Anoka County Railroad Authority 27,440,000 6.6% 1,799,697 Total Overlapping 49,13 8,118 City of Lino Lakes Direct Debt $ 19,280,000 100% 19,280,000 Total Direct and Overlapping Debt: $ 68,418,118 Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt outstanding data provided by each governmental unit. Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment) of property subject to taxation in overlapping unit to valuation of property subject to taxation in City. 105 CITY OF LINO LAKES, MINNESOTA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Table 11 Fiscal Year 2004 2005 2006 2007 Debt limit $ 28,616,070 $ 30,698,674 $ 34,686,356 $ 38,556,150 Total net debt applicable to limit 5,169,000 4,845,000 4,332,000 4,039,000 Legal debt margin $ 23,447,070 $ 25,853,674 $ 30,354,356 $ 34,517,150 Total net debt applicable to the limit as a percentage of debt limit 18.06% 15.78% 12.49% 10.48% 106 Table 11 (Continued) Legal Debt Margin Calculation for Fiscal Year 2012 Market value $ 1,519,857,242 Debt limit (3% of market value) 45,595,717 Debt applicable to limit 4,280,000 Legal debt margin $ 41,315,717 Fiscal Year 2008 2009 2010 2011 2012 2013 $ 60,658,830 $ 64,036,746 $ 60,622,086 $ 54,123,645 $ 45,595,717 $ 45,595,717 3,804,000 3,642,000 3,386,000 2,961,000 4,280,000 4,280,000 $ 56,854,830 $ 60,394,746 $ 57,236,086 $ 51,162,645 $ 41,315,717 $ 41,315,717 6.27% 5.69% 5.59% 5.47% 9.39% 9.39% 107 CITY OF LINO LAKES, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Table 12 (2) Personal Per Income Capita (3) (4) Fiscal (1) (thousands Personal School Unemployment Year Population of dollars) Income Enrollment Rate 2004 18,725 $ 650,301 $ 34,729 6,956 4.6 2005 19,698 696,797 35,374 6,934 3.8 2006 19,736 720,680 36,516 6,986 4.1 2007 19,851 759,718 38,271 6,846 4.8 2008 19,987 781,132 39,082 6,768 6.9 2009 20,305 768,341 37,840 6,725 7.8 2010 20,216 777,912 38,480 6,523 7.1 2011 20,505 831,170 40,535 6,426 5.9 2012 20,625 857,753 41,588 6,421 5.6 2013 20,700 N/A N/A 6,392 4.5 Source: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2013 which is city estimate (2) Information from Bureau of Economic Analysis Report - Anoka County statistics used as local information is unavailable (3) Information from ISD 12 Website (4) Information from MN Department of Employment and Economic Development - Anoka County statistics used as local information is unavailable Note: Information not available is marked N/A 108 CITY OF LINO LAKES, MINNESOTA PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO Table 13 Employer 2013 2004 (1) (1) Percentage Percentage of Total of Total Employees Rank Employment Employees Rank Employment State of Minnesota Corrections 460 1 N/A % 428 2 N/A ISD 12 - Centennial Schools 362 2 N/A - - N/A Taylor Corporation 160 3 N/A 223 5 N/A Target Corporation 150 4 N/A 275 3 N/A Curtis 1000 130 5 N/A - - N/A Molin Concrete Products 120 6 N/A 150 6 N/A Anoka County Juvenile Center 120 7 N/A 2,579 1 N/A Kohls 120 8 N/A 135 8 N/A YMCA 120 9 N/A - - N/A Rehbein Transit, Inc. 100 10 N/A 135 9 N/A Synovis Interventional Systems - 231 4 N/A Summit Fire Protection - - 150 7 N/A Custom Manufacturing 70 10 N/A Total 1,842 - % 4,376 - Source: City of Lino Lakes Official Statements/Employer Surveys Notes: (1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment within the City was not available. 109 CITY OF LINO LAKES, MINNESOTA FULL -TIME -EQUIVALENT EMPLOYEES BY TYPE LAST TEN FISCAL YEARS Table 14 2004 2005 2006 2007 General Government Administration 5.00 5.00 5.00 5.00 Seniors 0.63 0.63 0.63 0.63 Finance 3.50 3.50 3.50 3.50 Economic Development 1.00 1.00 1.00 1.00 Planning 2.00 2.00 2.00 2.00 Community Development 2.00 2.75 2.75 2.75 Engineering - Building 1.00 1.00 1.00 1.00 Other 0.55 1.15 1.15 1.40 Total General Government 15.68 17.03 17.03 17.28 Public Safety Officers 22.00 25.00 26.00 26.00 Civilians 4.00 4.75 4.75 4.75 Building Inspection 4.00 4.25 4.25 4.25 Total Public Safety 30.00 34.00 35.00 35.00 Public Works Streets 5.85 6.35 6.85 7.35 Other 1.15 1.15 1.15 1.15 Total Public Works 7.00 7.50 8.00 8.50 Parks, Recreation and Forestry 9.15 9.05 9.55 9.80 Water 2.15 2.15 2.15 2.15 Sewer 2.15 2.15 2.15 2.15 Total 66.13 71.88 73.88 74.88 Source: City Finance Office Table 14 (Continued) 2008 2009 2010 2011 2012 2013 5.00 5.00 4.00 3.50 3.50 3.50 0.63 0.63 0.63 - 3.50 3.50 3.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 1.00 1.00 1.00 2.75 2.75 2.25 2.00 2.00 2.00 1.00 1.00 1.00 1.40 1.40 1.40 0.70 0.70 0.70 17.28 17.28 15.28 11.20 11.20 10.20 27.00 27.00 27.00 25.00 25.00 4.75 4.75 4.25 4.00 3.00 4.25 4.25 2.75 2.50 2.50 25.00 3.00 2.50 36.00 36.00 34.00 31.50 30.50 30.50 7.35 7.35 6.85 7.00 7.00 1.15 1.15 1.15 1.00 1.00 8.50 8.50 8.00 8.00 8.00 7.00 1.00 8.00 9.80 9.80 9.30 9.00 9.00 8.70 2.15 2.15 2.15 2.15 2.15 2.30 2.15 2.15 2.15 2.15 2.15 2.30 75.88 75.88 70.88 64.00 63.00 62.00 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN YEARS Table 15 Fiscal Year Function/Program 2004 2005 2006 2007 2008 General Government Elections 2 1 2 1 2 Registered Voters 11,718 11,035 11,618 10,908 12,723 Number of Votes Cast 10,147 5,288 8,284 2,337 11,051 Voter Participation (Registered) 86.6% 47.9% 71.3% 21.4% 86.9% Public Safety Police: Calls for Service 6,797 6,973 6,990 7,053 6,871 Traffic Citations & Warnings 3,319 6,609 5,964 3,805 3,252 Part I Crimes 1,716 1,375 3,372 1,279 1,461 Part II Crimes 3,497 3,119 4,890 3,432 3,767 Inspections: Building Permits (1) 835 837 686 2,297 5,041 Value of Building Permits $61,579,910 $53,686,592 $42,078,007 $30,539,559 $15,852,780 Public Works General Maintenance (hours) 3,263 6,014 5,692 6,758 6,129 Street Maintenance (hours) 3,533 3,106 3,631 2,916 3,851 Fleet Maintenance (hours) 3,804 4,440 4,460 4,144 5,043 Snow Plowing/Sanding (hours) 855 1,003 867 1,425 1,353 Culture and Recreation Parks: Park Maintenance (hours) 10,210 10,577 10,368 10,939 11,136 Utilities Water Maintenance (hours) 4,349 3,904 4,387 4,256 5,716 Sanitary Sewer Maintenance (hours) 3,347 4,092 3,347 4,148 3,760 Source: Various City Departments Notes: Information not available is labeled N/A. (1) 1,565, 4,337 and 581 repair permits issued in 2007 and 2009, respectively, due to storm damage. 112 Table 15 (Continued) Fiscal Year 2009 2010 2011 2012 2013 1 2 1 2 1 11,805 12,284 11,705 13,478 12,020 4,354 8,545 4,314 11,546 1,575 36.9% 69.6% 36.9% 85.7% 13.1% 6,353 6,398 6,384 6,344 6,210 3,187 2,743 2,604 2,694 2,597 1,075 982 1,117 N/A N/A 3,151 2,911 2,911 N/A N/A 1,535 509 452 459 490 $ 9,586,160 $ 11,295,493 $ 11,295,493 $ 10,751,626 $ 17,683,665 5,870 4,945 7,416 6,939 3,994 3,267 3,099 4,352 5,926 5,740 4,782 4,850 4,214 3,945 4,548 950 1,638 1,534 594 1,639 12,406 9,257 9,813 9,739 8,480 5,041 3,560 3,568 3,585 3,119 3,486 3,531 3,557 3,517 3,109 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN YEARS Table 16 Function/Program Fiscal Year 2004 2005 2006 2007 2008 Public Safety Police: Stations 1 1 1 1 1 Patrol Units 10 11 12 12 12 Fire (Joint Powers): Stations in City 1 1 1 1 1 Fire Trucks 4 4 5 5 5 Public Works Lights 489 559 673 673 673 Vehicles 29 29 29 29 29 City Streets (miles) 94.3 95.5 96 96.1 100.71 Culture and Recreation Parks: Parks 19 18 18 18 18 Park Acres 142 141 141 141 141 Trails (miles) 18 19 20 26 26 Park Shelters 5 5 7 7 7 Basketball Courts 6 6 6 6 6 Fishing Pier 1 1 1 1 1 Skating Rinks 4 4 4 4 4 Soccer Fields 8 8 8 8 8 Baseball/Softball Fields 18 18 20 20 20 Tennis Courts 2 2 2 2 2 Playgrounds 17 17 16 16 16 Water Distribution System (miles) 48.2 50.8 51.1 64.7 74.7 Water Connections 3,738 3,957 4,090 4,112 4,247 Gallons Pumped (millions) 474 475 565 595 590 Number of Fire Hydrants 490 523 538 538 538 Water Tower Capacity (millions gallons) 2 2 2 2 2 Sanitary Sewer Collection System (miles) 61.4 63.5 63.3 64.5 69.8 Sewer Connections 3,960 4,142 4,282 4,428 4,447 Storm Sewer Pipe (miles) Source: Various City Departments 31.9 114 33.1 34.1 34.3 41.4 Table 16 (Continued) Fiscal Year 2009 2010 2011 2012 2013 1 1 1 1 1 12 12 12 12 12 1 1 1 1 1 5 5 5 5 5 673 673 673 673 673 29 29 29 29 29 100.71 100.71 100.71 100.71 100.71 18 18 18 18 18 141 141 141 141 141 26 26 26 26 26 7 7 6 6 6 6 6 6 6 6 1 1 1 1 1 4 4 4 4 4 8 8 8 8 8 20 20 20 20 20 2 2 2 2 2 16 16 16 16 16 74.7 74.7 74.7 74.7 74.7 4,340 4,382 4,424 4424 4484 589 498 492 609 536 538 538 538 538 538 2 2 2 2 2 69.8 69.8 69.8 69.8 69.8 4,486 4,530 4,567 4567 4624 41.4 41.4 41.4 41.4 41.4 CITY COUNCIL AGENDA ITEM 3A STAFF ORIGINATOR: Jeff Karlson MEETING DATE: June 9, 2014 TOPIC: Services Agreement with Milo Bennett VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve a services agreement between the City and Milo Bennett, the former fire chief for the Centennial Fire District. BACKGROUND In the process of working with Springsted on its fire department analysis, Mayor Reinert invited Milo Bennett to a fire committee meeting to get his feedback on certain aspects of the study. After meeting with Mr. Bennett, it was apparent that he would be an excellent resource for the City of Lino Lakes if the Council decided to create an independent fire department. Mr. Bennett has decades of experience in the fire service, including 18 years as CFD's fire chief. He also provided consulting services to Oak Grove several years ago. Mr. Bennett's services would be most valuable in the following areas: 1. Determining what fire apparatus and equipment are needed from CFD's current assets. 2. Developing standard operating procedures and policies. 3. Assisting with the purchase of new or used fire apparatus. 4. Providing professional expertise as the City explores the ongoing maintenance and support requirements that come with a fire depai hnent. This list is not complete, but provides a general description of the areas where Mr. Bennett's expertise would be beneficial. I drafted a services agreement between the City and Milo Bennett for your consideration. The hourly rate would be $60. RECOMMENDATION Approve the Services Agreement between the City of Lino Lakes and Milo Bennett. ATTACHMENTS Services Agreement between the City of Lino Lakes and Milo Bennett SERVICES AGREEMENT BETWEEN THE CITY OF LINO LAKES AND MILO BENNETT This Contract is made and entered into between the City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014, hereinafter "City" and Milo Bennett, hereinafter "Consultant". WHEREAS, the Consultant desires to, and is capable of, providing the necessary services according to the terms and conditions stated herein; NOW, THEREFORE, in consideration of mutual promises and agreements contained herein, the parties agree as follows: 1. TERM 1.1 Term. The term of this Contract shall be in effect from the date of execution until either party wishes to terminate the Contract. 2. PAYMENT 2.1 Compensation. The City shall pay Consultant an hourly rate of $60 for services performed in accordance with this Contract. 2.2 Invoices. Consultant shall, within 15 work days following the last day of each calendar month in which the services were provided, submit an invoice and request for payment on an invoice acceptable to the City. The invoices shall include the dates the work was performed. 2.3 Time of Payment. The City shall make payment to the Consultant within 35 days from the date on which the invoice was received. If the invoice in incorrect, or otherwise improper, the City will notify the Consultant within ten days of receiving the incorrect invoice. Upon receiving the correct invoice from the Contractor, the City will make payment within 35 days. 2.4 Payment for Unauthorized Claims. The City may refuse to pay any claim which is not specifically authorized by the Contract. Payment of the claim shall not preclude the City from questioning the propriety of the claim. The City reserves the right to offset any overpayment or disallowance of claim by reducing future payments. 1 3. COMPLIANCE WITH LAWS/STANDARDS 3.1 General. Consultant shall abide by all federal, state and local laws, statutes, ordinances, rules and regulations now in effect or hereinafter adopted pertaining to this Contract. 3.2 Minnesota Law to Govern. This Contract shall be governed and construed in accordance with the substantive and procedural laws of the State of Minnesota, without giving effect to the principles of conflict of laws. All proceedings related to this Contract shall be venued in the State of Minnesota. 4. INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor and nothing herein contained shall be construed to create the relationship of employer and employee between City and Consultant. Consultant shall at all times be free to exercise initiative, judgment, and discretion as to how to best perform or provide services. Consultant acknowledges and agrees that Consultant is not entitled to receive any of the benefits received by City employees and is not eligible for workers' or unemployment compensation benefits. Consultant also acknowledges and agrees that no withholding or deduction for state or federal income taxes, FICA, or otherwise, will be made from the payments due Consultant and that it is Consultant's sole obligation to comply with the applicable provisions of all federal and state tax laws. 5. INDEMNIFICATION Any and all claims that arise or may arise on behalf of the Consultant as a consequence of any act or omission on the part of Consultant while engaged in the performance of the Contract shall in no way be the obligation or responsibility of the City. Consultant shall indemnify, hold harmless and defend the City, its officers and employees against any and all liability, loss, costs, damages, expenses, claims, and actions, including attorneys' fees, which the City, its officers or employees may hereafter sustain, incur, or be required to pay, arising out of or by reason of any negligent or willful act or omission of Consultant in the execution, performance, or failure to adequately perform Consultant's obligations pursuant to this Contract. 6. INSURANCE 6.1 General Terms. In order to protect the Consultant and the City under the indemnity provisions set forth above, Consultant shall, at Consultant's expense, procure and maintain policies of insurance covering the term of this Contract. 2 9. SUBCONTRACTING The Consultant shall not enter into any subcontract for the performance of the services contemplated under this Contract nor assign any interest in this Contract without prior written consent of the City and subject to such conditions and provisions as are deemed necessary. 10. TERMINATION 10.1 With or Without Cause. This Contract may be terminated, with or without cause, by either party upon written notice. 11. CONSULTANT RIGHTS/REMEDIES Rights Cumulative. All remedies available to either party under the terms of this Contract or by law are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to the exclusion of other remedies. 11.2 Waiver. Waiver for any default shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any provision of this Contract shall not be construed to be modification for the terms of this Contract unless stated to be such in writing and signed by authorized representative of the City and Contractor. 12. AUTHORIZED REPRESENTATIVE Notification required to be provided pursuant to this Contract shall be provided to the following named persons and addresses unless otherwise stated in this Contract, or in a modification of this Contract. To Consultant: To City: Milo Bennett City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 13. MODIFICATIONS Any alterations, variations, modifications or waivers of the provisions of this Contract shall only be valid when they have been reduced to writing, and signed by authorized representatives of the City and Consultant. 3 14. SEVERABILITY The provisions of this Contract shall be deemed severable. If any part of this Contract is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Contract unless the part or parts which are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Contract with respect to either party. 15. MERGER 15.1 Final Agreement. This Contract is the final expression of the agreement of the parties and the complete and exclusive statement of the terms agreed upon, and shall supersede all prior negotiations, understandings or agreements. There are not representations, warranties, or stipulations, either oral or written, not herein contained. 16. AUDIT OF RECORDS The books, records, documents and accounting procedures and practices of the Consultant relevant to the Contract are subject to examination by City representatives and either the legislative auditor or the state auditor as appropriate pursuant to Minn. Stat. § 16B.06, Subd. 4 (1990). IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) indicated below. CONSULTANT: CITY OF LINO LAKES: By: By: Milo Bennett Date: 4 Jeff Reinert, Mayor Date: By: Julianne Bartell, City Clerk Date: CITY COUNCIL AGENDA ITEM 3B STAFF ORIGINATOR: Jeff Karlson MEETING DATE: June 9, 2014 TOPIC: Lease Agreement with New Creations Child Care VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve a lease agreement with New Creations Child Care and Learning Center for space in the city center formerly occupied by ISD No. 12 for the early childhood learning center. BACKGROUND Independent School District No. 12 entered into a lease agreement in 1998 with the City of Lino Lakes when construction of the city hall complex was completed in that same year. The leased premises consisted of approximately 10,900 square feet. The original term of the lease was from November 1, 1998 to June 30, 2009. The school district renewed the lease for an additional three years before terminating it June 2012. Subsequently, the City contracted Kevin Peck of KW Commercial to market the vacated premises. After nearly two years of deliberating with potential tenants, staff has come to terms with New Creations Child Care and Learning Center. New Creations currently operates two other day care centers in the area. The term of the lease would be July 1, 2014 to June 30, 2019. The annual base rent for the leased premises would be as follows: Months Square Feet Annual Net Rent Per Square Foot Total Net Rent Per Period Monthly Net Rent 1 to 3 5,388 $0.00 $0.00 $0.00 4 to 6 5,388 $5.94 $8,000.00 $2,666.67 7 to 9 6,362 $6.29 $10,000.00 $3,333.33 10 to 12 7,287 $7.68 $14,000.00 $4,666.67 13 to 24 8,327 $7.92 $70,040.00 $5,836.67 25 to 36 8,327 $8.15 $72,141.20 $6,011.77 47 to 48 8,327 $8.40 $74,305.44 $6,192.12 49 to 60 8,327 $8.65 $76,534.60 $6,377.88 The tenant would be charged for annual maintenance costs and for a percentage of the utility bills, which includes gas, electric, sewer and water, and garbage. Since this is a for-profit business, the tenant will be assessed property taxes. When the Anoka County Property Records and Taxation Division are notified of the change in tax status, they will convert the leased space to a personal property account in the tenant's name. Attached is the latest draft of the lease agreement. A few minor revisions still need to be made to the document, but the final version should be ready for execution on June 9. RECOMMENDATION Approve lease agreement with New Creations Child Care and Learning Center for the term commencing July 1, 2014 and terminating June 30, 2019. ATTACHMENTS Draft Lease Agreement History of How New Creations Started LEASE AGREEMENT Subject to and upon the Basic Lease Terms set forth below, and the other terms, provisions and conditions hereinafter set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Landlord does hereby lease to Tenant, and Tenant does hereby lease from Landlord, the Leased Premises described below, located in that building located at Building Address (the `Building"). BASIC LEASE TERMS Lease Effective Date: July 1, 2014 Landlord: City of Lino Lakes Legal Entity: A Minnesota municipal corporation Tenant: New Creations Child Care and Learning Center, LLC Legal Entity: Limited Liability Company (Domestic) Leased Premises: That portion of 620 Town Center Parkway, Lino Lakes, MN 55014, as more specifically described in Exhibit A Term: Commencing July 1, 2014 and terminating June 30, 2019. The period of July 1 to June 30 defined as "Lease Year." Commencement Date: July 1, 2014 Termination Date: June 30, 2019 Rent: As determined in accordance with Article 4 of the Lease Agreement Use: Child Care Center and related administrative purposes Parking: Tenant has the right to use parking spaces in the existing parking areas serving the Leased Premises. Landlord's Broker: Kevin Peck, KW Commercial Landlord's Address for Notices: 600 Town Center Parkway, Lino Lakes, MN 55014 Tenant's Address for Notices: 620 Town Center Parkway, Lino Lakes, MN 55014 Additional Exhibits: Exhibit A — Leased Premises Exhibit B — Basic Operating Costs Exhibit C — Site Plan 1 ARTICLE 1. Leased Premises. Subject to and upon the terms, provisions and conditions hereinafter set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Landlord does hereby lease to Tenant, and Tenant does hereby lease from Landlord, the Leased Premises described herein, which Leased Premises are located in the building located at 620 Town Parkway, Lino Lakes MN 55014 (the "Building"). The Leased is more particularly depicted in the attached Exhibit A (hereinafter referred to as the "Leased Premises"). The Leased Premises consists of approximately 5,388 rentable square feet with expansion to 8,327 rentable square feet. Tenant has reviewed the calculation of the square feet of the Leased Premises and accepts the calculations for purposes of this Lease Agreement. Any inaccuracy of the square footage will not affect the amount of Gross Rent to be paid by Tenant. Tenant will also have use of the Outdoor Play Area. See Exhibit C for details. (a) Tenant Improvements by Landlord — None (b) Tenant assumes full responsibility for the condition and operation of the Leased Premises, and the Landlord shall have no liability in respect thereto, or for damage to the property of the Tenant or on account of condition or operation of the Leased Premises. Landlord will have the right to inspect the Leased Premises after completion of Tenant Improvements. Tenant accepts (and is deemed to have accepted upon occupancy) the Leased Premises on an "as is", "where is", and "with all faults" basis on the Commencement Date, without warranty or representation of any kind, including without limitation, any warranty or representation as to the merchantability or fitness for a particular purpose of any portion of the Leased Premises. Tenant further acknowledges that Landlord is under no obligation to make any alterations, decorations, additions or improvements in or to the Leased Premises or to provide any build -out or improvement allowance with respect thereto except as expressly set forth in this Lease. ARTICLE 2. Purpose and Use. (a) The Tenant represents that the Leased Premises shall be used by the Tenant only for the purpose of providing the usual childcare, teaching / tutoring center and related purposes in connection with the operation of a childcare center. The Leased Premises shall be used and occupied by Tenant so as not to contravene any present or future governmental or quasi - governmental laws in force or reasonable requirement of insurance carriers or the provisions of Article 9 hereof. ARTICLE 3. Lease Term. (a) Tenant takes the Leased Premises from Landlord, upon the terms and conditions herein contained, to have and to hold the same for the initial term of Sixty (60) months (hereinafter referred to as "Lease Term") commencing on the 1st day of July, 2014 and terminating on the 30th day of June, 2019 (the "Initial Term"). Tenant may have ("Early Access") to the Leased Premises at no additional cost to the Tenant upon Lease execution to preform improvements to the Leased Premises. All provisions of this Lease shall be applicable during Early Access. Any extension of the Term hereunder shall be on the same terms and conditions as are applicable to the Initial Term; provided the Base Rent payable monthly by Tenant to Landlord for the 2 Leased Premises for the Renewal Term shall be not less than the final Lease Term rents as stated in Article 4 below and as defined in the Basic Lease Terms above. ARTICLE 4. Rent. (a) Rent. Tenant shall pay to Landlord an annual rent equal to a base annual rent, as hereinafter defined ("Base Rent"), plus the "Basic Operating Costs" as defined in Exhibit B. The Base Rent together with the Basic Operating Costs shall collectively be referred to as the "Gross Rent." Landlord shall advise Tenant in writing prior to the commencement of the Lease Term and from time to time, as adjustments are made, in accordance with the terms of this Lease, to the Gross Rent payments then due. (b) Payment of Gross Rent. Tenant shall pay the annual Base Rent in monthly installments, equal to one -twelfth (1/12th) of the then applicable annual Base Rent. Each monthly installment of Base Rent shall be payable in advance without demand and without any reduction, abatement, counterclaim or offset, to Landlord on or before the first day of each month (or the next succeeding business day in the event the first day of such month is not a business day). Tenant shall pay to the Landlord Tenant's "Proportionate Share" of Basic Operating Costs, without any reduction, abatement, counterclaim or offset, within ten (10) days of receipt of the billing for such Basic Operating Costs from Landlord. The term "Proportionate Share" means a fraction, the numerator of which is the square footage of the Leased Premises and the denominator of which is the total square footage of the Building, or the percentage identified in Exhibit B for utility costs. As of the date of this Lease, the Proportionate Share is 19.5%. If any Gross Rent is not paid within ten (10) days of the due date, Tenant shall pay a late penalty of Five Hundred and No/100 Dollars ($500.00). (c) Base Rent. The annual Base Rent for the Leased Premises shall be: Months Sq. Ft. Annual Net Rent Per Sq. Ft. Total Net Rent Per Period Monthly Net Rent 1 to 3 5,388 $0.00 $0.00 $0.00 4 to 6 5,388 $5.94 $8,000.00 $2,666.67 7 to 9 6,362 $6.29 $10,000.00 $3,333.33 10 to 12 7,287 $7.68 $14,000.00 $4,666.67 13 to 24 8,327 $7.92 $70,040.00 $5,836.67 25 to 36 8,327 $8.15 $72,141.20 $6,011.77 37 to 48 8,327 $8.40 $74,305.44 $6,192.12 49 to 60 8,327 $8.65 $76,534.60 $6,377.88 3 (d) Basic Operating Costs. In addition to the foregoing Base Rent and amounts paid directly by Tenant, Tenant shall also reimburse Landlord for Tenant's Proportionate Share of the Basic Operating Costs as illustrated in Exhibit B. Landlord will provide Tenant billings for Tenant's Proportionate Share of Basic Operating Cost incurred by Landlord in the previous month or months. Tenant shall reimburse Landlord Tenant's Proportionate Share of the Basic Operating Costs within ten (10) days of receipt of the billings from Landlord. Landlord reserves the right to bill Tenant the cost of repair or replacement of any damage or injury resulting from Tenant's act or omission as set forth in Article 6(d), as such costs are incurred by Landlord. (e) Property Taxes. The parties agree and understand the Building is normally exempt from the payment of property taxes. However, Landlord makes no warranties or representations as to whether the Lease Premises are subject to property taxation because of the Lease, and Landlord has no obligation to take any action to seek exemption from property taxes for the Lease Premises. In the event any real estate taxes are assessed or charged by any government authority on or against the Leased Premises, tenant shall pay such property taxes as additional rent. Tenant shall also pay a Proportionate Share (as defined in paragraph (b) of this Section) of annual installments of special assessments now levied or hereafter pending or levied during the term of any Renewal Term of this Lease. Any real estate taxes payable in the year of termination of this Lease shall be paid in full for that entire year; but any installment of assessments as are assessed herein that are due and payable in the year of termination of this Lease shall be paid by Tenant for that portion of the Lease Year Tenant occupies the Leased Premises. Tenant shall have the right, in its or Landlord's name, or both, but at its own cost and expense to contest the validity of any taxes or assessments, by appropriate proceedings timely instituted, provided Tenant shall give Landlord written notice of its intention to do so, diligently prosecute any such contest, at any time, effectively stay or prevent any official or judicial sale of the Leased Premises under execution or otherwise satisfy any final judgment enforcing any tax or assessment so contested, and promptly procures record satisfaction thereof. Landlord shall, upon request of Tenant, cooperate fully with Tenant in any such proceedings, provided, however, Landlord shall not be liable for any expense in connection therewith and that Tenant shall indemnify Landlord against the same and all losses that may result therefrom. (f) Other Amounts Payable Directly by Tenant. It is the intention of the parties that Tenant shall be responsible for all costs associated with the operation of the Leased Premises as set forth herein. In addition to the costs payable by Tenant as set forth above, Tenant shall be responsible for paying the following: (1) Telecommunications. Tenant shall pay directly to the provider all costs and expenses of telephone and telecommunication services and all other services, Tenant contracts for in its own name. (2) Insurance Expense. Tenant shall pay all costs of obtaining and carrying the insurance for which Tenant is obligated to maintain pursuant to Article 8. 4 (3) Cleaning Expense. Tenant shall pay all costs of regularly cleaning the Leased Premises. ARTICLE 5. Alterations. Tenant shall not, without the prior written consent of Landlord, make alterations, improvements or additions to the Leased Premises ("Tenant Alterations"). Any Tenant Alteration approved by Landlord shall be conditioned upon the following : (i) that Tenant furnishes Landlord a copy of the plans and specifications for the improvements; (ii) such alterations, improvements or additions are made in accordance with the required local ordinances and public authorities having jurisdiction thereof; (iii) that the value of the property shall not be diminished thereby; (iv) that the Tenant shall bear the cost of the same; and (v) that Tenant shall not allow mechanic's liens to exist. Any and all such alterations, physical additions or improvements, when made to the Leased Premises by Tenant, shall remain the property of the Tenant so long as this Lease is in force and effect, but shall be surrendered to the Landlord upon the termination of this Lease Agreement by lapse of time or otherwise; provided, however, that this clause shall not apply to equipment, furniture, or trade fixtures installed by Tenant. Provided further, upon termination, that Landlord, in Landlord's sole discretion, may, if Landlord notifies Tenant in writing at the time of approval of Tenant's Alterations, require Tenant to remove any Tenant Alterations and restore the Leased Premises to the condition of the Leased Premises at the commencement of the Lease Term of this Lease under Article 3, and pay all costs and expenses and reimburse Landlord for any damages caused by the installation or removal of any of Tenant Alterations. Any and all equipment, furniture, or trade fixtures installed by Tenant shall be and remain the property of the Tenant, and the Tenant may at any time remove any and all equipment, furniture, and trade fixtures installed by it on the Leased Premises, provided Tenant pays all costs and expenses of such removal, Tenant reimburses Landlord for any damages caused by the installation or removal of any of Tenant's equipment and restores the Leased Premises to the condition it was in prior to Tenant's installation of such equipment, furniture and trade fixtures. ARTICLE 6. Obligations of Landlord. Landlord covenants and agrees with Tenant: (a) Landlord shall keep the structural parts of the Building (e.g., foundation, load-bearing walls, exterior walls , subfloor and roof, and building mechanical systems, fire sprinkler system, fire safety system , heating and cooling systems, including the boiler, in working order. Landlord shall keep and maintain the Building and make necessary repairs and replacements to keep the Building in its current or better condition and to keep the Leased Premises in tenantable condition, subject to normal wear and tear. (b) Subject to Article 4(0 above, Landlord shall provide the following utilities to the Leased Premises: electricity, water, sewer, heat and gas. Landlord is not liable to Tenant for any interruption in utility services, unless caused by Landlord's negligence or intentional acts. (c) Landlord shall remove snow in areas, common or otherwise, serving the Leased Premises. Snow from walkways, steps and/or doorway areas is to be removed on weekdays. 5 (d) Landlord shall repair or replace any damage or injury to the Leased Premises, Building or sidewalks and parking areas serving Landlord's property caused by any act or omission of Tenant, its children, students, agents, employees or invitees. Such repair or replacement shall be at Tenant's sole cost and expense. (e) Landlord shall furnish Tenant with keys, at Tenant's sole expense, for any exterior door entering the Leased Premises. All such keys shall remain the property of Landlord. No additional locks shall be allowed on any door of the Leased Premises without advance permission of Landlord and without providing Landlord with duplicate keys. Upon termination of this Lease, Tenant shall surrender to Landlord all keys to the Leased Premises. ARTICLE 7. Obligations of Tenant. Tenant covenants and agrees with Landlord: (a) Tenant, at its own cost and expense, shall make all repairs and replacements to any alterations, improvements and fixtures owned by Tenant. (b) Tenant shall obtain all necessary permits and licensing for any Tenant Alterations, if any, pursuant to Article 5 and for the operation of its childcare center. (c) Tenant shall comply with all lawful government rules, regulations, ordinances, statutes and laws now or hereafter in effect pertaining to the Tenant's use hereof. Tenant shall be responsible, at Tenant's sole expense, for any structural or nonstructural alteration, addition, or change to the Leased Premises required to comply with laws, regulations, ordinances, or orders of any public agencies, whether now existing or hereafter promulgated, where such alterations, additions, or changes are required by reason of: Tenant's or Tenant's agents' acts; Tenant's use or change of use of the Leased Premises; Tenant's Alterations; Tenant's application for any permit or governmental approval. Tenant further agrees to comply with all the rules and regulations of the National Fire Protective Association, and any similar bodies relating to Tenant's use, and will not do, suffer, make to be done in, upon, or about the Leased Premises any act which might increase any insurance rate with respect to the Leased Premises in excess of the insurance rate existing as of the commencement date. (d) Tenant shall give Landlord access to the Leased Premises, upon twenty-four (24) hours advance notice from Landlord, during Tenant's "Normal Business Hours," without charge or diminution of rent, to enable Landlord to examine the same, to show the same to prospective tenants and to make such repairs, additions and alterations, as Landlord may deem advisable. For purposes of this Lease, the term "normal business hours" means Monday through Friday 5:00 A.M. to 8:00 P.M. (e) Subject to Landlord's obligations set forth in Article 6, Tenant shall keep the Leased Premises in good order and condition, and shall commit no waste upon the Leased Premises. (f) Tenant shall not permit any waste or refuse to be stored on the Leased Premises except in dumpsters or waste removal containers for a reasonable period of time pending removal to a disposal site. 6 (g) Tenant shall, upon expiration or termination of this Lease in any manner whatsoever, remove Tenant's goods and effects and those of any other person claiming a right of possession through or under Tenant, and quit and deliver up the Leased Premises to Landlord peaceably and quietly in as good order and condition as the same existed upon Tenant's occupancy of the Leased Premises, reasonable use and wear thereof and repairs which are Landlord's obligation excepted. Goods and effects not removed by Tenant at the expiration or termination of this Lease, however terminated, shall be considered abandoned, and Landlord may dispose of the same, as it deems expedient, at Tenant's expense. (h) Tenant shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, or suffer any other person (employees, agents, and invitees of Tenant excepted) to occupy or use the Leased Premises or any portion thereof, without the prior written consent of Landlord. Consent by Landlord to one assignment, subletting, occupation or use by any other person shall not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person. Any such assignment or subletting, without such consent shall be void, and shall, at the option of Landlord, constitutes a default under this Lease. (i) Tenant shall not overload, damage or deface the Leased Premises or do any act which may exceed the capacities of the floors, equipment or systems of the Leased Premises or the Building or make void or voidable any insurance on the Leased Premises or the Building or which may render an increased or extra premium payable for insurance. (j) Tenant shall keep the Leased Premises and the Building free from any liens arising out of any work performed, materials furnished or obligations incurred by Tenant. Tenant will indemnify Landlord for anything arising out of Tenant's work on the property including attorney's fees and costs. This indemnification shall survive the termination and cancellation of this Lease. (k) Failure of Landlord to insist, in any one or more instances, upon strict performance of any term, covenant or condition of this Lease, or to exercise any option herein, shall not be a waiver or relinquishment of such for the future. The receipt by Landlord of rents with knowledge of Tenant's breach in any of the terms, covenants or conditions of this Lease shall not be deemed to have waived any provision of this Lease unless in writing signed by Landlord. (1) If any default in this Lease of Tenant can be cured by the expenditure of money, Landlord may, but without obligation, and without limiting any other remedies which it may have be reason of such default, cure the default after thirty (30) days written notice to Tenant, charge the cost to Tenant and Tenant shall pay the same forthwith. Any amounts paid by Landlord to cure default of Tenant shall, for purposes of Landlord's remedies, be construed as additional rent due. (m) Tenant shall promptly pay to the Landlord Tenant's Proportionate Share of the Basic Operating Costs pursuant to Exhibit B. 7 ARTICLE 8. Insurance. (a) Tenant shall purchase, in advance, and shall maintain with insurers of recognized responsibility licensed to do business in the State of Minnesota: (1) Liability insurance covering all acts of Tenant, its employees, agents, representatives and guests within the Leased Premises in a single limit amount of not less than $2,000,000.00. (2) Property damage liability insurance covering leasehold improvements installed by Tenant, Tenant's fixtures and equipment. (b) The amount of liability insurance may be adjusted by Landlord upon sixty (60) days written notice, to reasonably reflect the current standards of the underwriting and insurance industry relative to Minnesota childcare centers. (c) All such insurance maintained by Tenant shall, with respect to liability but not with respect to property damage, name Landlord as an additional insured, and shall require the insurer to endeavor to provide not less than thirty (30) days written notice of cancellation to Landlord and Tenant by the insurer. Certificates of all such insurance shall be delivered to Landlord prior to occupancy of the Leased Premises by Tenant and at least thirty (30) days prior to the termination date of any existing policy. ARTICLE 9. Casualty Loss. In the event of any damage or destruction to the Leased Premises by fire or other cause during the term hereof, the following provisions shall apply: (a) If the Leased Premises are damaged by fire or any other cause to such extent that the cost of restoration, as reasonably estimated by Landlord, will equal or exceed thirty percent (30%) of the replacement value of the Building (exclusive of foundations) just prior to the occurrence of the damage, then Landlord may, no later than the sixtieth (60th) day following the damage, give written notice of election to terminate the Lease. (b) If the cost of restoration as reasonably estimated by Landlord shall amount to less than thirty percent (30%) of said replacement value of the Building, or if, despite the cost, Landlord does not elect to terminate this Lease, Landlord shall, at Landlord's sole cost and expense, regardless of the receipt by Landlord of insurance proceeds, restore the Building and the Leased Premises within 180 days of such damage or destruction, subject to delays beyond Landlord's control, and Tenant shall have no right to terminate this Lease except as herein provided. Landlord has no obligation to restore under this paragraph if damage to the Building does not affect the Leased Premises, and the Leased Premises remain in full working order (including heat and water services). Landlord shall not be responsible for restoring or repairing leasehold improvements of the Tenant. During the period that the Leased Premises is untenable, in whole or in part, as a result of a casualty loss, Rent shall abate in whole, or, if Tenant is able to occupy a portion of the Leased Premises without unreasonable business interruption, in part. Any partial abatement of Rent shall be based upon the amount of square footage occupied by Tenant, at any given time during the period of casualty loss, 8 as to the entire square footage of the Leased Premises. The period of abatement shall be from the date of the casualty loss to the date the entire amount of square footage occupied by Tenant becomes tenantable. (c) In the event of the election to terminate, this Lease shall be deemed to terminate on the date of the receipt of the notice of election and all Rent shall be paid up to the date of casualty. Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. (d) In the event this Lease is not terminated in accordance with Article 9, paragraph (a), above, all insurance proceeds (except for Tenant's insurance covering Tenant's leasehold improvements, personal property and trade fixtures and business continuation coverage) shall be assigned to Landlord to cover the cost of repair or to compensate Landlord for its loss. ARTICLE 10. Signs. Tenant must receive Landlord's permission for the design, location and wording for the erection of any exterior signage and the Tenant shall be solely responsible for the maintenance of any signage approved and installed. All signs must comply with any and all governmental regulations. The foregoing restriction does not apply to materials or signs placed on interior walls within the Leased Premises that (a) are used to designate rooms and or office locations, or (b) relate to the educational function of Tenant's childcare center operation, or to temporary banners or placards used by Tenant in connection with special childcare center activities. Tenant is responsible for all costs associated with manufacture, installation and removal of all signage related to their childcare center. Removal includes all necessary repairs to building walls and infrastructure so as to have as minimal structural and aesthetic impact as possible. ARTICLE 11. Security. Tenant is solely responsible for the security and safety of its faculty, children, students, guests and invitees. Tenant may make alterations to the Leased Premises as it may from time to time require for security and safety purposes, provided that Tenant is solely responsible for all costs thereof and such alterations are completed in accordance with Article 5 including the receipt of Landlord's prior written consent. Any alterations made or policies instituted herein by Tenant shall not unreasonably interfere with Landlord's reserved uses of the Leased Premises (including common areas). ARTICLE 12. Liability/Indemnification. Tenant agrees that Landlord and its officers and employees shall not be liable to Tenant for any damage to or loss of personal property in the Leased Premises unless such damage or loss is the result of the Landlord's breach of this Lease or the negligence, gross negligence or willful misconduct of Landlord or its officers, agent, employees, contractors or subcontractors. Notwithstanding anything to the contrary, the Tenant accepts the Leased Premises "as is", with all faults and the failure of the Leased Premises to currently comply with any safety, building or fire code, including, but limited to, the Americans with Disabilities Act shall not constitute negligence or willful misconduct of Landlord or its officers, agents, employees, contractors or subcontractors. Tenant also agrees that Landlord shall not be liable to Tenant, those claiming through or under Tenant, or any third party, for any injury, death or property damage occurring in, on or about the 9 Leased Premises, parking areas, surrounding grounds or areas providing access to the Leased Premises, parking areas or surrounding grounds; and Tenant shall indemnify Landlord against, and hold Landlord harmless from liability, claims, demands, damages, attorney fees, court costs and disbursements (including attorney fees, court costs and disbursements resulting from enforcement of this indemnity) thereof, arising out of any injury, death or property damage occurring in, on or about the Leased Premises, parking areas, surrounding grounds, or areas providing access to the parking areas, the Leased Premises or surrounding grounds, except to the extent caused by the negligence, gross negligence or willful misconduct of Landlord or its officers, agents, employees, contractors or subcontractors. ARTICLE 13. Default. (a) Landlord Default. If Landlord should be in default in the performance of any of its obligations under this Lease, which default continues for a period of more than thirty (30) days after receipt of written notice from Tenant specifying such default (or such shorter period of time as reasonably required by an emergency or otherwise set forth in this Lease), or if such default is of a nature to require more than thirty (30) days for remedy and continues beyond the time reasonably necessary to cure (and Landlord has not undertaken procedures to cure the default within such thirty (30) day period and has not diligently pursued such efforts to a complete cure), Tenant may after second 10 day written notice incur any reasonable and necessary expense to perform the obligation of Landlord specified in such notice to Landlord and Landlord shall reimburse Tenant for such expenses on demand. (b) Tenant Default. If default shall be made in the payment of any sum to be paid by Tenant under this Lease Agreement, and such default shall continue ten (10) days after written notice from Landlord to Tenant of such default, or default shall be made in the performance of any of the other non -monetary covenants or conditions which Tenant is required to observe and to perform, and such default shall continue for thirty (30) days after written notice from Landlord to Tenant of such default, or if such default is of a nature to require more than thirty (30) days for remedy and continues beyond the time reasonably necessary to cure (and Tenant has not undertaken procedures to cure the default within such thirty (30) day period and has not diligently pursued such efforts to a complete cure), or if the interest of Tenant under this Lease Agreement shall be levied on under execution or other legal process, or if any petition shall be filed by or against Tenant to declare Tenant as bankrupt or to delay, reduce or modify Tenant's debts or obligations, or if any petition shall be filed or other action taken to reorganize or modify Tenant's capital structure if Tenant is a corporation or other entity, or if Tenant be declared insolvent according to law, or if any assignment of Tenant's property shall be made for the benefit of creditors, or if a receiver or trustee is appointed for Tenant or its property, then Landlord may treat the occurrence of any one or more of the foregoing events as a breach of this Lease Agreement (provided that no such levy, execution, legal process or petition filed against Tenant shall constitute a breach of this Lease Agreement if Tenant shall vigorously contest the same by appropriate proceedings and shall remove or vacate the same within sixty (60) days from the date of its creation, service or filing), and thereupon, at Landlord's option, Landlord may have any one or more of the following described remedies in addition to any other rights and remedies provided at law or in equity: (1) Landlord may terminate this Lease Agreement and forthwith repossess the Leased Premises and remove all persons or property therefrom using appropriate legal process, and be entitled to recover forthwith as damages a sum of money equal to the total of (i) the cost 10 of recovering the Leased Premises including reasonable attorney fees, (ii) the unpaid rent owed at the time of termination, plus interest thereon from due date at the lesser of (a) the maximum rate permitted by applicable law or (b) 10%, (iii) the balance of the rent for the remainder of the Term less the Rent the Landlord can reasonably expect to recover by rental of the Leased Premises for said period reduced to present value at a rate of 5%, and (iv) any other sum of money and damages owed by Tenant to Landlord; or (2) Landlord may terminate Tenant's right of possession (but not the Lease Agreement) and may repossess the Leased Premises using appropriate legal process and without terminating this Lease Agreement, in which event Landlord may, but shall be under no obligation to do so, relet the same for the account of Tenant for such rent and upon such terms as shall be satisfactory to Landlord. For the purpose of such reletting Landlord is authorized to make any reasonable repairs to the Leased Premises that may be reasonably necessary for purposes of reletting; and (i) if Landlord shall fail or refuse to relet the Leased Premises, or (ii) if the same are relet and a sufficient sum shall not be realized from such reletting after paying the unpaid Gross Rental due hereunder earned but unpaid at the time of reletting plus interest thereon at the lesser of (a) the maximum rate permitted by applicable law or (b) 10%, plus the cost of recovering possession including reasonable attorney fees, and all of the costs and expenses of such repairs and the expense of such reletting and of the collection provided for in this Lease Agreement to be paid; then Tenant shall pay to Landlord as damages a sum equal to the amount of the rental reserved in this Lease Agreement for such period or periods, or if the Leased Premises have been relet, Tenant shall satisfy and pay any such deficiency upon demand therefor from time to time and Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this Article 13, paragraph (b)(2) from time to time on one or more occasions without Landlord being obligated to wait until expiration of the term of this Lease Agreement. Such reletting shall not be construed as an election on the part of Landlord to terminate this Lease Agreement unless a written notice of such intention is given to Tenant by Landlord. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease Agreement for such previous breach. ARTICLE 14. Holding Over. Should Tenant continue to occupy the Leased Premises after termination of its right to occupy the Leased Premises by lapse of time or otherwise, the monthly rent in such month-to-month tenancy shall be two hundred percent (200%) times the amount of the monthly rent payable during the preceding year of the Lease Term. ARTICLE 15. Assignment/Attornment and Novation. (a) Landlord shall have the right to transfer and assign, in whole or in part, all of its rights and obligations hereunder in the Leased Premises and the property referred to herein upon the condition that in such event this Lease shall remain in full force and effect, subject to the performance by Tenant of all of the terms, covenants, and conditions on its part to be performed, and upon the further condition that such assignee or transferee, agrees to be bound to perform all the terms, covenants, and conditions pursuant to this Lease. Upon any such assignment, or transfer, or if the Leased Premises comes into custody or possession of a mortgagee or any other party whether because of mortgage foreclosure, or otherwise, subject to the rights of Tenant under this Lease, 11 Tenant shall attom to such assignee or other party and recognize such party as Landlord hereunder. Tenant shall execute, on demand, any reasonable attornment agreement required by any such party to be executed, containing such provisions and such other provisions as such party may require to the extent the same are consistent with this Lease. If Landlord, or any subsequent owner, sells the Leased Premises, its liability for the performance of its agreements in this Lease (excepting indemnifications obligations that survive the termination of this Lease) will end on the date of the sale of the Premises, and Tenant will look solely to the purchaser for the performance of those agreements. For the purposes of this Article, any holder of a mortgage or deed of trust that affects the Leased Premises at any time, and any landlord in any lease to which this Lease is subordinate at any time, will be a subsequent owner of the Leased Premises when it succeeds the interest of the Landlord or any subsequent owner of the Leased Premises. (b) Without the prior written consent of Landlord, which consent maybe withheld at Landlord's sole discretion, Tenant shall not have the right to transfer, assign sublet or mortgage its leasehold interest, in whole or in part, its rights and obligations in the Leased Premises and the property referred to herein. If Landlord does consent in writing to such a transfer, assignment or sublease, it shall be on the condition that this Lease shall remain in full force and effect, subject to the performance of all terms, covenants and conditions and upon further condition that such assignee or transferee agrees to be bound to perform all the terms, covenants and conditions pursuant to this Lease. The use limitations set forth in Article 2 of this lease shall apply to any assignee, subtenant or transferee as well as to Tenant. Regardless of Landlord's consent, no subletting or assignment shall release Tenant of Tenant's obligation to pay the Rent and perform all other obligations to be performed by Tenant hereunder for the term of this Lease. The acceptance of rent by Landlord from any other person shall not be deemed to be a waiver of Landlord of any provision hereof or any right hereunder. Without the consent of the Landlord, any sublessee or assignee does not receive any interest in the Lease by virtue of a transfer from Tenant. ARTICLE 16. Hazardous Substances. (a) Tenant shall not store or use on the Leased Premises any toxic or hazardous substance including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls and any hazardous substance as defined in the Comprehensive and Environmental Resource Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. §9601- 9657, as amended ("Hazardous Substances"). Notwithstanding the foregoing, Tenant may lawfully use and store such substances traditionally used in the curriculum of Tenant, provided such use and storage is in compliance with all laws, regulations and ordinances governing such use, storage and disposal. Tenant will be responsible for following precautions of other reasonable educators relating to the use of such materials including obtaining increased insurance coverage and safety training of its staff. If Tenant does store or use any Hazardous Substances as allowed herein, Tenant must provide 15 days prior written notice to Landlord of the types and amounts of such substances expected to be in use in the Leased Premises. Tenant shall not conduct any activity which would cause the Leased Premises to become a hazardous waste treatment, storage or disposal facility within the meaning of or otherwise bring the Leased Premises within the ambit of the Resource Conservation Recovery Act of 1976 ("RCRA"), 42 U.S.C. §6901 et. seq., as amended, or a similar state law or local ordinance or any other environmental law. Tenant shall not discharge into the air or into any water source or system any emissions which would require a permit under 12 the Federal Water Pollution Control Act, 33 U.S.C. §1251 et. seq., or the Clean Air Act, 42 U.S.C. §7401 et. seq. or any similar state law or local ordinance or any other environmental law. (b) Tenant represents and warrants that any use or storage of Hazardous Substances at the Leased Premises by Tenant or Tenant's Parties (defined below) will be in full compliance with applicable law, and any disposal of such waste or of pollutants or contaminates shall be in full compliance with applicable law and at Tenant's expense. (c) Tenant agrees to indemnify, defend (with counsel reasonably acceptable to Landlord and at Tenant's sole cost), and hold Landlord and Landlord's affiliates, directors, officers, employees, and agents, and any assignees or successors to Landlord's interest in the Leased Premises, their directors, officers, employees, and agents, free and harmless from and against all losses, liabilities, obligations, penalties, claims, litigation, demands, defenses, costs, judgments, suits, proceedings, damages (including consequential damages), disbursements, or expenses of any kind (including attorneys' and experts' fees and expenses and fees and expenses incurred in investigating, defending, or prosecuting any litigation, claim, or proceeding) that may at any time be imposed upon, incurred by, or asserted or awarded against Landlord or any of them in connection with or arising from or out of: (1) any Hazardous Substance on, in, under, or affecting all or any portion of the Leased Premises that was used, generated, stored, released, or disposed on, under or in the Leased Premises by Tenant or Tenant's employees, agents, contractors, directors, officers, children, students, guests, contractors or invitees (each a "Tenant Party" and collectively, "Tenant's Parties"); (2) any misrepresentation by Tenant, or breach by Tenant of any warranty, covenant, or agreement contained or referred to in this Article; (3) any violation or claim of violation by Tenant of any Environmental Law; or (4) the imposition of any lien for the recovery of any costs for environmental cleanup or other response costs relating to the release or threatened release of Hazardous Substance by any Tenant Party. This indemnification is the personal obligation of Tenant and will survive termination of this Lease. Except as provided herein, Tenant, its successors, and assigns waive, release, and agree not to make any claim or bring any cost recovery action against Landlord under CERCLA, as that term is defined in subparagraph (b), or any state equivalent or any similar law now existing or enacted after this date. To the extent that Landlord is strictly liable under any such law, regulation, ordinance, or requirement, Tenant's obligation to Landlord under this indemnity will likewise be without regard to fault on the part of Tenant with respect to the violation or condition that results in liability to Landlord. Tenant will immediately notify landlord about Hazardous Substances it learns are placed, located or spilled on the Leased Premises. ARTICLE 17. Covenant of Quiet Enjoyment. (a) Subject to Landlord's right of entry pursuant to this Lease Agreement, Landlord covenants that, as of the date of the execution of this Lease Agreement, Landlord shall take all necessary steps 13 to ensure that Tenant has and enjoys exclusive quiet enjoyment of the use and occupancy of the Leased Premises during Tenant's Normal Business Hours, and that no ground lease, mortgage, lease or encumbrance affecting the Leased Premises is in default and that no person, corporation, partnership or other entity has a right to foreclose upon or otherwise succeed to all or any part of the title of Landlord to the Leased Premises. (b) Landlord covenants and agrees that it has full right and power to execute and perform this Lease Agreement and to grant the estate demised herein; and that Tenant, on paying Rent herein reserved and performing the covenants hereof, shall peaceably and quietly have, hold and enjoy the Leased Premises and all appurtenances during the full term of this Lease Agreement and any extension or renewal thereof, subject to the joint usage of Landlord as agreed herein. (c) Landlord has marketable title to the entire Leased Premises, has the full right to enter into this Agreement and perform hereunder and has not entered into any other option or other commitment to sell, lease or encumber all or any part of the Leased Premises. (d) The Leased Premises are connected to city water, sanitary sewer, gas, electricity and other utility services. ARTICLE 18. Corporate Authority. The person executing this Lease on behalf of Tenant does hereby covenant and warrant that Tenant is a duly authorized and existing non-profit corporation and is qualified to do business in the State of Minnesota and that the corporation has full right and authority to enter into this Lease and that each and every person signing on behalf of the corporation is authorized to do so. ARTICLE 19. Notice. All notices or requests under this Lease shall be in writing and given by certified mail or personal delivery. Notice to Landlord shall be addressed to the person and to the address at which rent has last been paid or any subsequent address with Landlord may designate from time to time in writing. Notice to Tenant shall be addressed to the address of the Leased Premises or to any subsequent address, which Tenant may designate to Landlord from time to time in writing. Properly addressed notices or letters sent by certified mail shall be deemed given and served two (2) business days after they have been deposited with the US Postal Service or any common carrier services or other reasonable entity that provides a signed receipt of delivery. Personal service shall be deemed complete upon delivery. ARTICLE 20. Waiver. No waiver of a breach of any covenants in this Lease shall be construed to be a waiver of any succeeding breach of such covenant. Any partial payment by Tenant of rent in arrears which is accepted by Landlord prior to an issuance of an order granting restitution or possession of the Leased Premises may be applied to the balance due from Tenant under this Lease Agreement, and shall not constitute a waiver of Landlord's action to recover possession of the Leased Premises for nonpayment of rent. 14 ARTICLE 21. Amendment Or Modifications. No modification, release, discharge, amendment or waiver of any provisions hereof shall be of any force, effect or value, unless in writing signed by the Landlord, Tenant and Lender or their duly authorized agents or attorneys. ARTICLE 22. Complete Agreement. There are no oral agreements between Landlord and Tenant affecting this Lease, and this Lease supersedes and cancels any and all previous negotiations, agreements and understandings between Landlord and Tenant with respect to the subject matter of this Lease or the Leased Premises. ARTICLE 23. Force Majeure. In the event that the Landlord or Tenant shall be delayed, hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials, restrictive government laws or regulations, riots, insurrections; the action, failure to act, or default of the other party; war or other reason beyond their control, then performance of such act shall be excused for the period of the delay, and the period for performance of any such act shall be extended for a period equivalent to the period of such delay. This paragraph shall not apply to the non-payment of rent unless such non-payment is caused by the act, failure to act, or default of Landlord. ARTICLE 24. Miscellaneous. (a) The specific remedies to which Landlord or Tenant may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies or means in regard to which they may be lawfully entitled in case of any breach or threatened breach by any of them of any provisions of this Lease Agreement. (b) Except as otherwise provided herein, the covenants and agreements herein contained shall bind and inure to the benefit of Landlord, its successors and assigns, and Tenant and its successors and assigns. (c) Each covenant, agreement or stipulation by a party hereto shall be performed at such party's own cost and expense, and without cost or expense to the other party. (d) If any term or provision of this Lease Agreement or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable, the remainder of this Lease Agreement, or the application of such terms or provisions to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term or provision of this Lease shall be valid and enforced to the fullest extent permitted by law. (e) The heading or captions of Article or paragraphs in this Lease Agreement are for convenience and reference only and in no way define, limit or describe the scope or intent of this Lease Agreement or the provisions of such Article or paragraph. (f) Interpretation of this Lease Agreement shall be governed by the laws of the State of Minnesota. 15 (g) This Lease Agreement may be executed in any number of original counterparts, all of which evidence only one agreement, binding on all parties, even though all parties are not signatory to the same counterpart. Facsimile signatures transmitted via the internet or facsimile may be used in place of original signatures for this Agreement and related documents. ARTICLE 25. Security Deposit and Security Interest Tenant shall provide a security deposit in the amount of $2,500.00 to be paid to Landlord on lease execution. The deposit shall be held by Landlord as security for the faithful and timely performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant hereunder. Said security deposit shall not be considered an advance payment of any amount to be paid hereunder or a measure of Landlord's damages in case of default by Tenant. If Tenant defaults with respect to any provision relating to any payment by Tenant, the Landlord may (but shall not be required) use, apply or retain all or any part of this security deposit for the payment of any such sum in default, or for the payment of any amount which the Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate the Landlord for what it may spend or become obligated to spend by reason of Tenant's default under this Lease. Tenant shall receive no interest on said security deposit and the Landlord may commingle the same with other monies of the Landlord. If Tenant shall have substantially and faithfully complied with the provisions of this Lease, the security deposit shall be returned to Tenant sixty (60) days after termination of this Lease and vacation by Tenant of the Leased Premises. As additional security and inducement to Landlord to enter into this Lease, Tenant, in order to secure the payment of the amounts due to Landlord under this Lease, including all amendments, extensions, renewals and replacements thereof, now or at any time owed to Landlord, including but not limited to all payment of Gross Rent, Basic Operating Costs, and all other charges, fees, expenses and amounts, whether now existing or hereafter arising, direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, independent, joint, several or joint and several (the "Obligations"), hereby grants to Landlord a lien and security interest in Tenant's Property to secure the performance of Tenant's obligations under this Agreement. For this Lease Tenant's Property will include furnishings, trade fixtures, equipment, machinery, or other property placed upon the Leased Premises. Tenant agrees to execute a financing statement evidencing such lien and security interest. Upon Tenant's default of any obligation stated in this Agreement, Landlord, as secured party, shall be entitled to all of the rights and remedies of a secured party under the Minnesota Uniform Commercial Code. ARTICLE 26. Brokerage Commissions. With the exception of Kevin Peck of KW Commercial, Landlord's agent, and Jeffery Wilwerding of KW Commercial, Tenant's Broker, each of the parties represents and warrants that there are no claims for brokerage commission or finder's fees in connection with the execution of this Lease, and agrees to indemnify the other against, and hold it harmless from, all liabilities, arising from any such claim including, without limitation, reasonable attorney's fees. Landlord agrees to pay a commission to KW Commercial consistent with the listing agreement executed by the Landlord and KW Commercial. 16 Millennium Associates Plus LLC ("KW Commercial Midwest") has an exclusive contract with The City of Lino Lakes ("Landlord") for the leasing of the Building. Kevin Peck ("Listing Agent") is the Listing Agent acting on behalf of the Landlord for the leasing of the Building. KW Commercial Midwest has also been engaged by New Creations Child Care Center ("Tenant") to act as its exclusive leasing agent in seeking and negotiating lease arrangements for premises in the metro area, including the Building. Jeffery Wilwerding ("Tenant's Agent") is representing Tenant in connection with its search for such premises. Since Listing Agent and Tenant's Agent both work for KW Commercial Midwest, a dual agency exists. This means that KW Commercial Midwest and all its agents owe a fiduciary duty to both Landlord and Tenant. Because Landlord and Tenant may have conflicting interests, KW Commercial Midwest and its agents (including Landlord's Agent and Tenant's Agent) are prohibited from advocating exclusively for either party without those parties' consent. Therefore, KW Commercial Midwest cannot represent both Landlord and Tenant with respect to the Building unless both Landlord and Tenant agree to this dual agency. With this Lease, each of Tenant and Landlord ratify and confirm the oral consents previously given regarding the dual agency arrangement as discussed herein. IN WITNESS WHEREOF, the parties hereto have caused the execution of this Lease Agreement, to be effective the date set forth above. Landlord: City of Lino Lakes: Tenant: New Creations Child Care and Learning Center, LLC: By: By: Its: Mayor Its: By: Its: City Clerk 17 Rooni 4 r EXHIBIT A Leased Premises Resrraam Boy Girls Itindergarien Room 2 Wafting Room Receniian Arca Men/ 3 o Women Workroom Breakroom Room 10 Quiet Room Room s Conference Room Room 9 = Months 1 - 60 -5,388 SF = Months 7 - 64 - 6,362 SF = Months 10 - 60 - 7,287 SF = Months 13 - 60 - 8,327 SF Room 7 J{ey —PP- Primary Exit 18 torage for City f Lino Lakes Early Childhood Center Insiiiu:efar i ammmrunenfel Ass essmern Brooklyn Pork, MN 55428 EXHIBIT B Basic Operating Costs Estimated based on Dec. 2010 thru Nov. 2011 Annual Maintenance Costs: *$4,964 Included: Daily systems Checks*: 15 min/day x248 days/year x$32.48 $2,014 Air Filters (actual cost; no labor is charged) $750 Condenser Unit #4: Spring startup and midseason maintenance $600 Clean condenser unit 2x/year $100 Repairs (average is $2,400/year) $1,500 Insurance $1,408 Check/repair emergency lights 2x/year $200 Annual roof inspection and caulking $200 Snow plowing and lawn maintenance $1,000 Total $7,772 *Includes system programming, monitoring, adjustments and troubleshooting Utility Bills Connexus : 19.5% of total monthly bill $6,435 Xcel Energy: 19.5% of total monthly bill $12,042 Water & Sewer: 39% of Monthly Bill $2,335 Garbage: $1,061 Total $21,873 Utility and Maintenance Cost $29,645 9,938.00 SF 9,938 Estimated PSF $2.98 19 Exhibit C Site Plan Tenant will have access to the Outdoor Play Area Approx. 40ft X 40ft. EXi". SAN. LINE, IFY LOCATION INVERT 6OLLARDS SPACED 0 5'-0" A.C. LWITI1 CENTER LINE 12" FROM WALL, SEE 2/A203. 3/A204 AND 4/A406 FOR AG+rtln NAL 0. (TOTAL OF RECYCLIN$, AEE AL . A5 E LEASED ,$T. WAPREMISES IFY LO 8C TRANSFORMER, SEE ELEC. VERIF4(1.(7CATI61'4' T r a5I11, Outdoor play Area H 4' d' T_R, 4 EQ. SFACESA- >v STAFF PARKING (5 CARS) BOLLARDS, TOTAL OF (2) POLICE STATION F.F.E`®904.5 o [r• [{ t rf-e CCr.• :;LL 02520.A (1/ ifFT SLOPE AWAY FROM BLDG.) 20 -_f 02831 June 2, 2014 To Whom It May Concern: Our names are Angela Carlson and Tiffany Simon, and we are two experienced Anoka -Hennepin teachers who received their Master's degrees in education. Our husbands, Ryan Carlson and Peter Simon, have joined our team to expand our business. In August of 2011, we opened New Creations Blaine with 10 children from our in-home daycare business. Through our large church community, word of mouth, Craigslist, and Facebook, we expanded from 10 children to full capacity by September, 2011 to a waiting list in December of that same year. This location has maintained a waiting list and bring in new families as children move or graduate preschool. In November of 2012, we expanded to our second location based on the desire from the pastor at that location and a need in the community for quality, affordable child care. The location went from 5 children that transferred from our Blaine location to completely full by the spring of 2013. Currently, we maintain a waiting list and fit in new families as we are able. During this time we went from two staff members to now over 30 employees. Our program has received continual compliments from families due to our innovative and progressive curriculum, enrichment, organic menus, quality, college-educated staff and much more. These aspects have allowed our centers to fill up right away with a waiting list, and we are confident the community of Lino Lakes is looking for this same type of child care. We are expanding to this Lino Lakes location for several reasons. We've assessed the area and realize that once again there is a need for quality, Christian -based, affordable child care as evidenced by currently receiving phone calls for this location just through word of mouth, talking with the YMCA, and some local churches. While it may seem like a miniscule advertising medium, Craigslist has proven to be a successful way to advertise for enrollment. We plan to use this, word of mouth, advertising in all local churches, co -sponsoring events at local businesses and YMCAs, and signage along Lake Drive to let the public know we are opening and enrolling for this fall. We plan on making immediate changes and improvements to the Lino Lakes facility. This includes patching and painting all walls, adding murals, replacing carpeting and tiles, and adding a fenced -in commercial playground. These changes will be made through licensed contractors financed with our current savings. Our projection is that we will meet or exceed the current timeframe of expanding into the vacant classrooms with the following schedule of children in the program: By September: 21 By December: 46 By March: 57 By September 2015: 77 Thank you, Tiffany & Peter Simon Angela & Ryan Carlson Co-owners of New Creations Childcare & Learning Center CITY COUNCIL AGENDA ITEM 3C STAFF ORIGINATOR: Jeff Karlson MEETING DATE: June 9, 2014 TOPIC: Appointment of Recycling Program Intern VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve the appointment of Kyung Kye for the Recycling Program Intern position in the Community Development Department. BACKGROUND A conditional job offer was made to Kyung Kye for a Recycling Program Intern position. This is a temporary six-month position budgeted for 32 hours a week at an hourly rate of $12.00. The position is funded through the Anoka County SCORE Grant Program. RECOMMENDATION Approve the appointment of Kyung Kye, effective June 16, 2014. AGENDA ITEM 5A STAFF ORIGINATOR: Rick DeGardner, Public Services Director MEETING DATE: June 9, 2014 TOPIC: Resolution No. 14-51, Authorizing Preparation of Plans and Specifications for Well Construction of Well No. 6 VOTE REQUIRED: 3/5 BACKGROUND: In accordance with the Water System Comprehensive Plan, construction of Well No. 6 is recommended to accommodate the City's water demand. The last well/pump house was constructed in 2005 (Well No. 5 - 6670 Black Duck Drive). The location of Well No. 6 will be located adjacent to Birch Park on property acquired within "The Preserve" development. Staff recommends utilizing Mr. Kurt Johnson, PE of Stantec Consulting Services, Inc. to prepare the Plans and Specifications for the well construction of Well No. 6. The scope of services includes: • Prepare Preliminary Design • Develop Contract Documents for Bidding • Advertise, Review, Tabulate, and Recommend Award ■ Construction Administration and Inspection Mr. Johnson has previously designed three wells for the City of Lino Lakes and has done an exceptional job. The Scope of Services are not to exceed $24,600 (see attached letter dated March 27, 2014 for more detailed information on what services this contract will include). The City proposes to use Trunk Area & Unit funds for all costs of this improvement project. OPTIONS: 1. Adopt Resolution No. 14-51, Authorizing Preparation of Plans and Specs for Well Construction of Well No. 6 2. Return to staff for further review. RECOMMENDATION: Option No. 1 - Staff recommends that Resolution No. 14-51 be adopted. ATTACHMENTS: 1. Stantec Consulting Services, Inc. letter dated March 27, 2014 CITY OF LINO LAKES RESOLUTION NO. 14-51 RESOLUTION AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR WELL CONSTRUCTION OF WELL NO. 6. WHEREAS, In accordance with the Water System Comprehensive Plan, construction of Well No. 6 is recommended to accommodate the City's water demand; and WHEREAS, the location of Well No. 6 will be located adjacent to Birch Park on property acquired within "The Preserve" development; and WHEREAS, Mr. Kurt Johnson of Stantec Consulting Services Inc., shall perform such services; and WHEREAS, the City proposes to use Trunk Area & Unit funds for all of the cost of the improvements, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Stantec Consulting Services Inc., is authorized to prepare the Plans and Specifications for the Well Construction of Well No. 6 for costs not to exceed $24,600. Adopted by the Lino Lakes City Council this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk Stantec Consulting Services Inc. Stantec 2335 Highway 36 West, St. Paul MN 55113 March 27, 2014 Mr. Tim Hillesheim Utility Superintendent City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 Refere.nce: \'b'e11 No 6 Construc4'io.n Dear Tim: Thank you for the opportunity to continue my long history of working with you and many other City staff to provide engineering service for the City water system. This opportunity is personal, as well as professional for me, since I began planning the system with Don Volk several decades ago and was largely responsible for planning, designing, and construction most of your facilities. I am looking forward to working with the City on the construction of Well No. 6. My 35 years of engineering experience in the water industry has given me the opportunity to work repeatedly with all the major well drilling companies and earn their respect. I have completed the design and construction of dozens of wells, well rehabs, abandonments, and repairs—experience that will be directly relevant in executing this project for the City. I have prepared a Scope of Services, and a Not -to -Exceed cost of $24,600, for your review. Please read through the scope as if you were repeating the construction of Well 2, or 4, or 5, and if you can find anything that I have overlooked, I guarantee it'll be taken care of. I will be happy to provide a breakdown of our hours and fees at your request. Scope of Services 1. Preliminary Items a. Kickoff Meeting • Discuss expectations, coordination with City staff • Provide tentative schedule; design, bidding, construction, testing • Obtain background information - site drawings • Determine disposal of sandstone, construction/testing water, working hours and related ordinances • Survey neighborhood for sensitivity to construction noise,: seismic logging, traffic, etc. Design wiih community in mind March 27, 2014 Page 2 of 4 Reference: Well No. 6 Construction b. Review geology, well logs of E,,xisting City wells, ancl current operations of Well 3 and 5 • Perform a well interference study of the impact of the combined pumping of Well 3 and 5 and new Well 6 on pumping water levels in the Jordan aquifer • Develop a profile of the expected bedrock geology at Well 6 • Discuss the need, if determined by geologic review, to drill a pilot or exploratory well 2. Prepare Preliminary Design of Well 6 a. Conduct 0 survey of site if necessary b. Consult utility mapping for connecting infrastructure and compliance with Part 4725,4450, Distances from Contamination Source, of the MN Well Code c. Meeting with staff • Ascertain future pumphouse requirements • Consider future water treatment raw water collection routing and sizing • Discuss anticipated geologic profile, proposed well sizing, and preferred construction methods (i.e. cable tool) and acceptable experienced drilling Contractors • Discuss well design alternatives • Locate Well 6 on the site • Review schedule, updates as necessary 3. Develop Contract Documents for Bidding a. Meet with staff or obtain a clear understanding of City standards of the Construction Contract, including: • Division 1 requirements • General conditions • Minority involvement • Prevailing wage • Prepare preliminary cost estimate for completion of Well 6 b. Complete MDH Plan Review and submit for approval c. Complete DNR application d. Prepare contract documents, technical specifications, and required drawings for public bidding e. Print and bind sufficient copies for City staffsreview and Stantec QA/QC f. Revise and final documents Design with community in mind March 27, 2014 Page 3 of 4 Reference: Vtleli No. 6 Construction 4. Advertise, Bid, Review, Tabulate, and Recommend Award a. Submit Bidding documents to QuestCDN, or advertise and distribute as directed by City b. Provide interpretations, answer bidders questions c. Prepare addenda as approved and appropriate d. Attend the Bid opening at the City's request. e. Review and Tabulate Bids, prepare a letter of recommendation 5. Construction Services a. Construction Administration • Maintain construction log • Process change orders and periodic pay requests • Conduct progress meeting • Recording of Well Log • Ensure regular sampling is conducted and final samples delivered to the MGS • Sanitary treatment/disinfection of tools and well • Project completion; final payment, site restoration, documentation and reporting, etc. b. Construction Inspection • Periodic/routine visits to determine conformance with the Contract Documents, compliance with the MN Well Code, and: - Plumbness check of the drilling machine - Drilling progress, sampling frequency, lithological identification - Noise abatement is followed Construction site maintenance - Erosion, runoff containment, etc. • Final Plumbness and alignment testing • Grouting; grout delivery quality, quantify for payment, observation of placement methods • Blasting and surging events; seismic and noise witnessing as determined appropriate • Rock removal and quantification for payment • Test pumping for capacity, sand content, water disposal and chemical sampling • Witness color televising and recording of finished well • Final chlorination and sealing of well Design with community in mind March 27, 2014 Page 4 of 4 Reference: Well No. 6 Construction Summary I have enjoyed every occasion I have had to plan your system, build facilities, and troubleshoot problems. It is clear that the City of Lino Lakes, and yourself, takes pride in the City's water system, and I would be pleased to assist you with this project. If you have questions about this submittal or if I can provide further information, please don't hesitate to contact me. I look forward to hearing from you, Tim. Sincerely, STANTEC CONSULTING SERVICES INC. Kurt Johnson, PE Senior Project Manager Phone: (651) 967-4611 kurt.johnson@stantec.com Design with community in mind AGENDA ITEM 5B STAFF ORIGINATOR: Rick DeGardner, Public Services Director MEETING DATE: June 9, 2014 TOPIC: Resolution No. 14-52, Authorizing Preparation of Plans and Specifications for Well No. 6 Pumping Facility. VOTE REQUIRED: 3/5 BACKGROUND: In accordance with the Water System Comprehensive Plan, construction of Well House No. 6 is planned to meet City demands. The location of this pumping facility will be adjacent to Birch Park on property that was acquired within "The Preserve" development. Staff recommends utilizing WSB & Associates, Inc. to prepare the Plans and Specifications for the Well No. 6 Pumping Facility. The scope of services includes: • Prepare Preliminary and Final Design of Well House ■ Develop Contract Documents for Bidding • Distribute, Review, Tabulate, and Recommend Award of Construction Contract ■ Construction Administration and Inspection Please refer to the attached letter dated June 2, 2014 for more detailed information on what services this contract will include. It is staffs recommendation to authorize the preparation of Plans and Specifications for the Well No. 6 Pumping Facility for a Not -To - Exceed amount of $155,250. The City proposes to use Trunk Area & Unit funds for all costs of this improvement project. The projected timeline: Well House Design October - December 2014 MDH Review, Bidding December 2014 - January 2015 Award Contract February 2015 Well House Construction Completed Summer 2015 OPTIONS: 1. Adopt Resolution No. 14-52, Authorizing the Preparation of Plans and Specifications for Well No. 6 Pumping Facility. 2. Return to staff for further review. RECOMMENDATION: Option No. 1 - Staff recommends that Resolution No. 14-52 be adopted. ATTACHMENTS: WSB & Associates, Inc. letter dated June 2, 2014 CITY OF LINO LAKES RESOLUTION NO. 14-52 RESOLUTION AUTHORIZING THE PREPARATION OF PLANS AND SPECIFICATIONS FOR WELL NO. 6 PUMPING FACILITY. WHEREAS, in accordance with the Water System Comprehensive Plan, construction of Well House No. 6 is planned to meet City demands; and WHEREAS, the proposed project is necessary, cost-effective, and feasible; and WHEREAS, the City's Engineer, WSB & Associates, Inc., shall perform such services; and WHEREAS, the City proposes to use Trunk Area & Unit funds for all of the cost of the improvements, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. WSB & Associates, Inc. is designated as the engineer for this project and is directed to prepare plans and specifications for the Well No. 6 Pumping Facility for a cost not to exceed $155,250. Adopted by the Lino Lakes City Council this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk WSB & Associates. Inc. June 2, 2014 engineering• planning• environmental. construction Rick DeGardner City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 Re: Proposal to Provide Professional Engineering Services for the Design and Construction Management of Well No. 6 Pumping Facility Dear Mr. DeGardner: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 WSB is pleased to submit this proposal to provide professional engineering services related to the design and construction of a municipal well pumping facility. Our proposal will be presented in the following six sections: • Project Approach/Scope of Services • City's Tasks • Proposal Assumptions • WSB Sub -consultants • Fee • Schedule A delineation of tasks to be performed by WSB & Associates, Inc. and by the City follows directly. Assumptions related to these same items are also defined in a subsequent section. PROJECT APPROACH/SCOPE OF SERVICES WSB's project approach/scope of services is based on our understanding of the project and our experience on similar projects. The following are the major tasks that will be performed in completing the project. St. Cloud • Minneapolis • St. Paul Equal Opportunity Employer wsbeng.com M:UVaterlV, t ,rateriLh,o LakesUVe11611.TR PROP-LL-060214-IVeR6.dae Mr. Rick DeGardner June 2, 2014 Page 2 Design and construction of Well House 6 Task 1 — Well House Preliminary Design • Provide site surveying and base map preparation. • Discuss site constraints with Minnesota Department of Health personnel. • Prepare a preliminary site and building layout and discuss with City personnel. Task 2 — Well House Final Design • Prepare final construction drawings and specifications based upon preliminary design discussions with the City. • Review final construction drawings and specifications with City personnel. • Provide an opinion of probable construction cost to reflect specified equipment, structural components, and any modifications made during final design. • Review opinion of probable construction cost with City personnel. • Submit two (2) copies of the final construction drawings and specifications to the Minnesota Department of Health (MDH) for review. Respond to questions and comments from the MDH and receive approval for the drawings and specifications. • Prepare and provide technical criteria, written descriptions, design data, final opinion of probable construction cost, and forms for the City's use in filing applications for governmental design approvals. • Assist City in consultations with governmental agencies, if needed. Task 3 — Well House Bidding • Print construction drawings and specifications (Bidding Documents). • Distribute Bidding Documents to prospective bidders. • Maintain bidders list. • Respond to bidder questions. • Issue addenda to Bidding Documents, if required. • Attend bid opening and prepare bid tabulation sheets. • Evaluate bids. • Assess proposed substitute materials and equipment. • Recommend award of construction contract. Task 4 — Well House Construction • Organize, coordinate, lead, and attend preconstruction conference and regular progress meetings during construction. Provide and distribute meeting minutes. • Establish reference points for construction staking of the project by Contractor (one time). • Review Contractor submittals (shop drawings) for products and equipment. • Issue contract document clarifications as required. • Process contract change order requests. APIlraterWastetraarlLlno Lnkall'e1I611-77t PROP-LL-060214-II'ell6doe Mr. Rick DeGardner June 2, 2014 Page 3 • Review contractor -submitted construction progress schedules. • Process contractor pay requests. • Provide substantial completion punch list for contractor and issue certificate of substantial completion when appropriate for the well house construction. • Assist the City with start-up of the well house. • Review final submittal from Contractor with respect to conformance with the contract documents. • Process final pay request and project close-outs. Task 5 — Well House Post Construction • Provide record drawings. • Provide an operation and maintenance manual for the facility. • Visit the project to observe any apparent defects in the completed work and assist the City in working with the Contractor to correct defects. THE CITY'S TASKS In order to complete our tasks, we will need The City to provide the following: • Provide a designated project contact person. • Provide answers to specific project questions, provide requested information, and make decisions regarding project direction during the course of the project. • Choose a well house configuration and site plan early in the project. • Pay permitting and review fees that may be necessary. • Pay for necessary testing services as defined in the contract documents. • Pay additional testing costs that may be necessary. • Attend construction progress meetings when requested. PROPOSAL ASSUMPTIONS WSB tasks and estimated fees are based on the following assumptions: • This proposal assumes design of the well house will be similar to the recently toured Hugo Well House No. 6. • This proposal includes a generator receptacle to connect a portable generator and conduits to be stubbed out from the well house for a potential future standby generator. It does not include the design of a portable generator. • This proposal includes design of radiant in floor heat for the well house. • This proposal does not include preparation of a wellhead protection plan or update. • This proposal does not include amending the City's water appropriation permit. • An operation and maintenance manual, beyond the information contained in contractor - supplied shop drawings, is not included in the project. L dl:Iil'alernsleienrerlato l ukesl0'ell 611.311 PROP -1.I: 0602/4- '. /l6.dac Mr. Rick DeGardner June 2, 2014 Page 4 • The architectural finishes of the well house are to be determined during the preliminary design phase of the project. • The well house will be connected to the existing SCADA systems. • Potential bidders will be charged a fee for each copy of the Bidding Documents. WSB will retain this fee. WSB SUB -CONSULTANTS WSB subconsultants and their area of responsibility are indicated below: • Barr Engineering Company — Former Kaeding and Associates Personnel (electrical/instrumentation and control) • Wentz Associates, Inc. (plumbing and HVAC) • Oertel Architects (architectural) Our scope includes the management of the subconsultants and their efforts. Subconsultant billings pass through WSB without mark-up. FEE WSB & Associates, Inc. will provide the scope of services for as proposed herein on an hourly basis with a not -to -exceed fee of $155,250. A breakdown according to phase and tasks follows directly below: Design and Construction of Well House 6 Task No. Task Description — Phase 2 - Well House/Pump No. 6 WSB Barr Wentz Oertel Estimated Fee 2A Well House Preliminary Design $5,000 $1,000 $1,000 $2,000 $9,000 2B Well House Final Design Phase $43,500 $11,150 $4,000 $12,500 $71,150 2C Well House Bidding $6,500 $1,800 $1,000 $1,000 $10,300 2D Well House Construction $48,000 $5,300 $4,000 $2,000 $59,300 2E Well House Post Construction $5,500 $5,500 Total Phase 2 $108,500 $19,250 $10,000 $17,500 $155,250 WSB's fee includes civil, water and structural design/overall project management/survey/construction administration/permitting. hIll'aierWaste -aier&Lina LakesUl'elt 6ILTR PROP-LL-0601)4-O'el6.dac Mr. Rick DeGardner June 2, 2014 Page 5 SCHEDULE A preliminary schedule for completing the work is as follows: Well House Design MDH Review, Bidding Award Contract Well House Construction Completed October — December 2014 December 2014 — January 2015 February 2015 Summer 2015 This letter represents our total understanding of the project and proposed scope of services. If you are in agreement with the scope of services, please have the City acceptance block of this letter signed and return a copy to WSB. Our receipt of an executed copy will be WSB's authorization to proceed. Should the City request additional services outside of the scope of services outlined above, we will work with you to establish a revised scope and fee. Please contact me at your convenience at 763-541-4800 if you have any questions or concerns relating to this proposal as presented. We appreciate the opportunity to assist you and your staff with the completion of this project. Sincerely, WSB & Associates, Inc. Ward E oject Manager ACCEPTED: City of Lino Lakes By: Title: Date: n Wedel, PE ty Engineer blairwer(Puneu'nlerV.loo! kealJP,ll 61LTR PROP-LL-060114-II'0l6.doe STAFF ORIGINATOR: MEETING DATE: TOPIC: VOTE REQUIRED: AGENDA ITEM 5C Rick DeGardner, Public Services Director June 9, 2014 Resolution No. 14-53, Approving Centennial School District Lease for Radio Communications System at Water Tower #1 3/5 BACKGROUND: The Centennial School District (CSD) is requesting to lease space at Water Tower #1 to install a Radio System which is an integral component of their strategic plan to transition to a district -wide Radio Communications System. This improved system will allow CSD staff to communicate with all head custodians, grounds and snow removal personnel, and have communications capabilities within each building and between buildings. The Radio System will also be an important component of the CSD's Emergency Communication System. For example, this will allow CSD staff to have communication with Emergency Responders in the event of a security situation, regardless of where the incident is taking place. The agreed upon lease amount is $300 per month. OPTIONS: 1. Adopt Resolution No. 14-53, Approving Centennial School District Lease for Radio Communications System at Water Tower #1. 2. Do not adopt Resolution No. 14-53. RECOMMENDATION: Option No. 1 CITY OF LINO LAKES RESOLUTION NO. 14-53 RESOLUTION APPROVING CENTENNIAL SCHOOL DISTRICT LEASE FOR RADIO COMMUNICATIONS SYSTEM AT WATER TOWER #1 WHEREAS, The Centennial School District (CSD) is requesting to lease space at Water Tower #1 to install a Radio System which is an integral component of their strategic plan to transition to a district -wide Radio Communications System; and WHEREAS, This improved system will allow CSD staff to communicate with all head custodians, grounds and snow removal personnel, and have communications capabilities within each building and between buildings; and WHEREAS, The Radio Communications System will also be an important component of the CSD's Emergency Communication System; and WHEREAS, The agreed upon lease amount is $300 per month. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Rick DeGardner, Public Services Director is directed to enter into a lease agreement with the Centennial School District for the installation of a Radio Communications System at Water Tower #1. Adopted by the Lino Lakes City Council this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: June 9, 2014 TOPIC: Century Farm North i. Consider First Reading of Ordinance No. 06-14 to Rezone Property located at 7880 Sunset Avenue from R, Rural to PUD - Planned Unit Development ii. Consider Resolution No. 14-43 Approving Amendment to PUD Development Stage Plan/Preliminary Plat iii. Consider Resolution No. 14-49 Approving Petition and Waiver Agreement from Century Farm North Development, Inc. and Jeffrey E. Morell for Robinson Drive Improvements VOTE REQUIRED: 3/5 INTRODUCTION Century Farm North is a residential Planned Unit Development (PUD) in northwest Lino Lakes and was approved in 2003. It includes a mix of housing styles including typical single family lots, single family airpark lots with hangars, single family detached townhomes (individual house lots located within a commonly owned yard lot) and attached townhomes. The original development consisted of 27 low density units and 223 medium density units on 85.3 net acres of land resulting in a net density of 2.93 units per acre. There have been five (5) final plats and one (1) PUD amendment to date. The first amendment allowed for the conversion of 16 single family detached townhomes to 16 single family lots. Five (5) of those single family lots were final platted as part of the 5th Addition. The current Land Use Application is for the following: • Rezone property located at 7880 Sunset Avenue from R -Rural to PUD -Planned Unit Development. • Amend the PUD Development Stage Plan/Preliminary Plat of Century Farm North to expand project boundary, realign Robinson Drive and create new parcels. • Vacate dedicated parkland (City Council action with PUD Final Plan/Final Plat) 1 The applicant is requesting an amendment to the PUD Development Stage Plan/Preliminary Plat of Century Farm North to include a 0.991 acre parcel located 7880 Sunset Avenue owned by Jeff More11. This parcel is currently zoned R -Rural and requires rezoning to Planned Unit Development to be consistent with Century Farm North. The project also includes the realignment of Robinson Drive. The proposed PUD preliminary plat boundary amendment occurs within Outlot A and Park area of Century Farm North 5 Addition. This will be the second PUD Amendment to Century Farm North. The preliminary plat of Century Farm North 5th Addition consists of 10 single family detached townhomes and 16 single family lots. Five (5) of those single family lots have been developed. The proposed Century Farm 6th Addition will include the remaining 11 undeveloped lots from the 5th Addition, convert the 10 single family detached townhomes to single family lots and create an additional 11 single family lots for a total of 32 single family lots. Outlot C is for future townhome development. A portion of dedicated parkland will need to be vacated to accommodate 3 proposed new lots. The abutting property owners, Century Farm North Development, Inc. and Jeffrey E. Morell, have signed a Petition and Waiver Agreement agreeing to assessments and right-of-way dedication for the Robinson Drive improvements. A previous land use application to amend the PUD Development Stage Plan/Preliminary Plat for Century Farm North was submitted in May 2013 and the public hearing was continued through several Planning & Zoning Board meetings. The applicant formally withdrew the application in January 2014. A new public hearing was held by the Planning & Zoning Board on April 9, 2014 and continued to the May 14, 2014 meeting. The Planning Staff Reports dated April 9, 2014 and May 14, 2014 precedes this report. BACKGROUND Rezoning The 0.991 acre parcel located at 7880 Sunset Avenue is currently zoned R -Rural. The PUD amendment proposes to amend the boundary of the Century Farm North preliminary plat to include this parcel. The property requires rezoning from R -Rural to PUD -Planned Unit Development to be consistent with the current development. Ordinance No. 06-14 details the conditions of the rezoning. 2 Density Calculations Entire Amended Preliminary Plat for Century Farm North The density calculations are based on the entire amended preliminary plat for Century Farm North. At the time the original PUD was approved in 2003, the City's Comprehensive Plan for medium density residential development allowed for 3 to 6 dwelling units per acre and the original density was 2.93 units per acre. Although the current Comprehensive Plan for medium density requires 4.0 to 5.9 dwelling units per acre, the developer has the right to develop at a density consistent with the original PUD. The increased density to 3.81 units per acre moves in a direction more consist with the current Comprehensive Plan. Zoning Requirements and Standards The PUD provides flexibility from the strict standards of the zoning ordinance; however, the proposed development shall model the R-2 District regulations. Unless otherwise stated in the PUD resolution, the regulations and performance standards of the zoning ordinance and R-2 Two Family Residential District will be in effect. Building Design Standards The developer is proposing several different housing models and product types to provide customers with options and development variations. The building design standards as established in the R-2, Two Family Residential District shall apply to the single family lots except the following PUD criteria regarding garages and front porches shall apply as detailed in Resolution 14-43. Comprehensive Plan, Zoning and Subdivision Ordinance As detailed in the Planning & Zoning Board Staff Reports, the rezoning and PUD amendment have been reviewed for compliance with the comprehensive plan, zoning and subdivision ordinance The proposed development is not considered premature, is consistent with the 3 Acres Gross Property Area 9 :6 Wetland 12.72 Arterial (CR 53) ROW 1.28 Park Dedication 13.32 H Net Property Area # Units 260 LDensity 3.81 units/acre The density calculations are based on the entire amended preliminary plat for Century Farm North. At the time the original PUD was approved in 2003, the City's Comprehensive Plan for medium density residential development allowed for 3 to 6 dwelling units per acre and the original density was 2.93 units per acre. Although the current Comprehensive Plan for medium density requires 4.0 to 5.9 dwelling units per acre, the developer has the right to develop at a density consistent with the original PUD. The increased density to 3.81 units per acre moves in a direction more consist with the current Comprehensive Plan. Zoning Requirements and Standards The PUD provides flexibility from the strict standards of the zoning ordinance; however, the proposed development shall model the R-2 District regulations. Unless otherwise stated in the PUD resolution, the regulations and performance standards of the zoning ordinance and R-2 Two Family Residential District will be in effect. Building Design Standards The developer is proposing several different housing models and product types to provide customers with options and development variations. The building design standards as established in the R-2, Two Family Residential District shall apply to the single family lots except the following PUD criteria regarding garages and front porches shall apply as detailed in Resolution 14-43. Comprehensive Plan, Zoning and Subdivision Ordinance As detailed in the Planning & Zoning Board Staff Reports, the rezoning and PUD amendment have been reviewed for compliance with the comprehensive plan, zoning and subdivision ordinance The proposed development is not considered premature, is consistent with the 3 original PUD and comprehensive plan and meets the performance standards of the subdivision and zoning ordinance. Utilities Public water, sanitary and storm sewer utilities will be installed in conjunction with the construction of Robinson Drive. The watermain will also extend south along CR 53 and connect with the existing watermain to loop the system for better fire protection and water quality. Public Land Dedication and Fees The PUD amendment includes the creation of 11 additional lots and the vacation of approximately 0.545 acres of previously dedicated parkland. The vacated parkland would be used to create 3 additional lots along Robinson Drive. The newly created lots would be subject to the City's Park Dedication fee at $2,500 per lot. Additionally, the City would need to be reimbursed for the value of the land dedication established at the original time of approval which was $50,000 per acre. The following park dedication requirements shall be met: Park Land Dedication and Fees 0.545 gross acres — 0.00 acres wetland = 0.545 net acres 0.545 acres x $50,000 (value of land at time of dedication) = $27,250 11 lots x $2,500 payment in lieu = $27,500 TOTAL = $54,750 Note that any wetland on the vacated parkland shall be subtracted from the total area. Only upland can be used to calculate the reimbursement amount. Public Hearing A public hearing was held by the Planning & Zoning Board on April 9, 2014 and continued to the May 14, 2014 meeting. Issues and concerns brought forth at the public hearing include: 1. Trail location and park development An 8 foot wide bituminous trail is proposed to extend north -south throughout the development and is consistent with the Park, Greenway & Trail System Plan. The trail and park will be constructed and developed in the future when park dedication fees and funding become available. A 5 foot wide concrete sidewalk will be constructed along the south side of Robinson Drive. 2. Traffic speed and safety concerns on Robinson Drive 4 The City will design traffic calming techniques into the Robinson Drive street construction such as bump outs at trail crossings, tree landscaped boulevards and parking only on south side of the street. 3. Drainage concerns The assistant City Engineer and Developer's engineer met with some of the residents after the Planning & Zoning Board meeting to discuss their drainage concerns. Final Plat A land use application for PUD Final Plan/Final Plat for Century Farm North 6th Addition shall be required. At such time, the developer shall enter into a Development Contract and other documents as the City deems necessary. The boundary of the proposed Century Farm North 6th Addition final plat shall include Outlot A, Century Farm North 5th Addition, the vacated parkland and the Morell parcel. Petition and Waiver Agreement One condition of Resolution 14-43 approving the Amendment to the PUD Development Stage Plan/Preliminary Plat was the submittal of a Petition and Waiver Agreement for road construction, utility extension and right-of-way dedication for Robinson Drive. The abutting property owners, Century Farm North Development, Inc. and Jeffrey E. Morell, have signed a Petition and Waiver Agreement agreeing to assessments and right-of-way dedication. The agreement allows for the City to levy against the property up to $950,000 for the construction of the improvements and waives all requirements for special assessments under Minnesota Statutes, Chapter 429 and City Charter requirements. The agreement also provides for the dedication, at no cost to the city, permanent right-of-way and temporary easements necessary for the extension of Robinson Drive and public utilities. RECOMMENDATION The Planning & Zoning Board and staff recommend approval of the rezoning, amendment to the PUD Development Stage Plan/Preliminary Plat and Petition and Waiver Agreement for Century Farm North subject to the conditions listed in Resolution 14-43. ATTACHMENTS 1. Site Location Map 2. Aerial Map 3. Ordinance 06-14 4. Resolution 14-43 5. Exhibits from PUD Development Stage Plan/Preliminary Plat 6. Resolution 14-49 7. Petition and Waiver Agreement 5 111■11111► ono owl ' 111 .. rung /, of -1111: 11■ Century Farm North r . m l—I. MEW 11111111111111 111111i 'm "�� %�111111■ 1111MI= M. Dinning ■ �� L�����■ 35W �.� �� 111161i11�lEAr .II 1��rff ® mal\m1,� gtiir M11.4 =1„1 111 ..: . min ■■res t► ■ MAW � 1 George Watch Luke \ j` AA I III 35W All ' g:41 111 �Rondeaa Lake AIr Fi MIS AMIndMMI 1517 r ■IF I �i■mml� ■ ■■■ 1111 11111111111111•0161 IrMin -■i VIII 04 1111111111!! I1!d 11��■ r0... T35W 11 L1 3tJIIImi MIN Unn .1.9.111111 MOM 14111 �mJ111111111 om GA lb ir '1 11�'p I 1 min Ir , Rue [Ake • p e•Y t�'oni Centervillle Lake Peltier Lake III; !1■■.1 r1. ■1111 ■, dp i 414 MI .: u_ arr _I:Lao MN iou NV - __'CII I • RTN CIINOKS Site Location Map 1 N s 0 1,250 2,500 5,000 7,500 10,000 Feet 1st Reading: Publication: 2nd Reading: Effective: CITY OF LINO LAKES ORDINANCE NO. 06-14 ORDINANCE TO REZONE PROPERTY FROM R, RURAL TO PUD -PLANNED UNIT DEVELOPMENT FOR CENTURY FARM NORTH "The City Council of Lino Lakes ordains". Section 1 The City of Lino Lakes makes the following Findings of Fact: 1. The City received a Land Use Application to rezone certain property from R, Rural to PUD -Planned Unit Development. 2. The Planning and Zoning Board held a public hearing on April 9, 2014 and continued the public hearing to May 14, 2014. 3. The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. 4. The proposed use is or will be compatible with present and future land uses of the area. 5. The proposed use conforms with all performance standards. 6. The proposed use can be accommodated with existing public services and will not overburden the City's service capacity. 7. Traffic generation by the proposed use is within capabilities of streets serving the property. 8. The rezoning meets the purpose and intent of the original PUD Development Stage Plan/Preliminary Plat for Century Farm North. Section 2 The Zoning Ordinance of the City of Lino Lakes is hereby amended to rezone the following described property from R, Rural to PUD -Planned Unit Development: That Part of the Southwest Quarter of the Northwest Quarter of Section 7, Township 31, Range 22. Beginning at the Northwest Corner of the Southwest Quarter of the Northwest Quarter of Section 7, Township 31, Range 22, thence South along the West Line of Said Southwest Quarter of the Northwest Quarter of Section 7, on an Assumed Bearing of SOO 2712"E a Distance of 120 Feet; Thence N87 36' 19"E East a Distance of 360 Feet; Thence, Parallel with Said West Line of The Southwest Quarter of the Northwest Quarter to a 1 Point of Intersection with the North Line of Said Southwest Quarter of the Northwest Quarter; Thence Westerly along the North Line of the Southwest Quarter of the Northwest Quarter to the Point of Beginning. Section 3 The development shall conform to the plans, requirements, and conditions of approval as listed in Resolution 14-43 and associated information. Section 4 This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter. Adopted by the Lino Lakes City Council this day of , 2014. The motion for the adoption of the foregoing ordinance was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ATTEST: Julianne Bartell, City Clerk 2 Jeff Reinert, Mayor CITY OF LINO LAKES RESOLUTION NO. 14-43 APPROVING AMENDMENT TO PUD DEVELOPMENT STAGE PLAN/PRELIMINARY PLAT FOR CENTURY FARM NORTH WHEREAS, the City has received an application for amending the PUD Development Stage Plan/Preliminary Plat for Century Farm North hereafter referred to as "Development"; and WHEREAS, City staff has completed a review of the "Development" based on the plan set prepared by Plowe Engineering, Inc. dated April 25, 2014 and received by the City on April 25, 2014; and WHEREAS, a public hearing was held before the Planning & Zoning Board on April 9, 2014 and continued to the May 14, 2014 meeting and the Board recommended approval of the "Development"; and WHEREAS, the "Development" is not considered premature, is consistent with the original Planned Unit Development (PUD) and meets the performance standards of the subdivision and zoning ordinance; and WHEREAS, the regulations and performance standards of the zoning ordinance and R-2 Two Family Residential District will be in effect unless otherwise stated in this resolution; and WHEREAS, the building design standards as established in the R-2, Two Family Residential District shall apply to the single family lots except the following PUD criteria regarding garages and front porches shall apply: a. All single family dwellings shall have a minimum double garage, b. All single family dwellings shall include a front porch or stoop that is covered, unenclosed and a minimum of 3 feet in depth, c. All single family dwelling and garage elevations shall include a variation in exterior building materials such as brick, stone, rock face, concrete block, wood, stucco, vinyl, steel, fiber cement and aluminum siding, d. Side or rear loaded garages are permitted. The elevation facing the street shall require a minimum of one (1) window, e. The garage doors shall incorporate architectural design features such as decorative windows, panels, hinges, etc., f. Garages in excess of two stalls shall be broken up so the additional stalls are recessed from the main garage facade, g. Garage width does not exceed 32 feet; and 1 WHEREAS, a land use application for PUD Final Plan/Final Plat for Century Farm North 6th Addition shall be required and at such time, the developer shall enter into a Development Contract and other documents as the City deems necessary. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby approves the amendment to the PUD Development Stage Plan/Preliminary Plat for Century Farm North, subject to the following conditions being met prior to approval of the PUD Final Plan/Final Plat: 1. All comments from City Engineer letters dated May 7, 2014 and May 9, 2014 shall be addressed. 2. All comments from Environmental Coordinator letter dated April 1, 2014 shall be addressed. 3. All comments from Anoka County Highway Department letter April 21, 2014 shall be addressed except for the relocation of the driveway. 4. Approval from Rice Creek Watershed District shall be required at the time of recording the final plat. 5. A summary table created in Microsoft Excel by lot and block and outlots of lot sizes (gross, unbuildable and net area) and setbacks (front, rear and side) shall be required. 6. The original approved PUD Preliminary Plat for Century Farm North shall be incorporated into the plan set. 7. Drainage and utility easements shall be dedicated over stormwater drainage areas including Outlot B. 8. Conservation easement documents and exhibits shall be drafted by the developer, approved by RCWD and the City and recorded by the developer. 9. Conservation easements shall be dedicated over wetland buffer areas as required by Rice Creek Watershed District. 10. Conservation easement language shall include allowance for construction of trails, parks, storm water management facilities, retaining walls, etc. 11. Outlots A and B shall be deeded to the City at the time of recording the final plat. 12. The developer shall draft the deeds for Outlot A and B. 13. A condition of the final plat for Century Farm North 6th Addition will be if the house located at 7880 Sunset Avenue were ever to be removed, demolished or lose its legal non -conforming status, the driveway will be required to be relocated off of Sunset Avenue to Robinson Drive. 14. The final plat for Century Farm North 6th Addition will require right of access dedicated to Anoka County. 15. The applicant shall provide documentation from RCWD approving the variance from the 25 -foot buffer requirements. 16. A separate plan sheet indicating the wetland boundary, wetland buffer and conservation easement and location of wetland buffer signs shall be included in the plan set. 17. The house located at 7880 Sunset Avenue shall immediately hook up to municipal water and sanitary services when available. 18. The existing well located at 7880 Sunset Avenue shall be properly abandoned per state and local regulations. 19. The existing septic drain field located at 7880 Sunset Avenue shall be properly removed per state and local regulations. 20. Sheet CO, Title Sheet: 2 a. The original PUD Preliminary Plat for Century Farm North shall be incorporated into the plan set. 21. Sheet C1-1, Grading, Drainage and Erosion Control Plan: a. Remove comment `Existing driveway to be removed -install new driveway to Robinson Drive." 22. Sheet L1, Landscape Plan: a. The trail shall be shown on the plan sheet. b. A landscape buffer shall be shown between the trail and the lot line on Outlot A and the Park area. c. The developer shall be responsible for installing the landscape buffers along the trail segments, Lot 1, Block 3 and Lot 1, Block 4. d. A clear vision triangle shall be maintained at the intersection of Robinson Drive and Sunset Avenue. i. Remove 1 large boulevard tree and 2 black hills spruce on Lot 1, Block 3. ii. Remove 2 large boulevard trees and 1 black hills spruce on Lot 1, Block 4 23. Sheet PP, Preliminary Plat: a. The developer shall complete the density chart on page 3 of the City Council staff report and include it on Sheet PP -Preliminary Plat. b. The stormwater pond dimensions on Outlot B do not appear to match the pond area shown on the grading plans. Please revise. c. The trail shall be shown on the plan sheet. d. The wetland buffer and conservation easement line shall be modified. e. Dimensions of Outlot A, Lot 10, Block 3 and Lot 1, Block 2 shall be modified. 24. Sheet 2 of 8 -Certificate of Survey a. The Certificate of Survey shall in be included in the plan set. 25. Traffic calming methods or controls will be installed on Robinson Drive. Adopted by the Council of the City of Lino Lakes this day of , 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ATTEST: Julianne Bartell, City Clerk 3 Jeff Reinert, Mayor N CENTURY FAR NORT PUD/PRELIMINARY PLAT AMMENDMENT M GTH ADDITION TITLE SHEET, NOTES & LEGEND LINO LAKES, MN GENERAL NOTES THE INFORMATION SHOWN ON THESE DRAWINGS CONCERNING TYPE AND LOCATION OF EXISTING UTILITIES IS NOT GUARANTEED TO BE ACCURATE OR ALL INCLUSIVE. THE CONTRACTOR IS RESPONSIBLE FOR MAKING HIS OWN DETERMINATION AS TO TYPE AND LOCATION OF UTILITIES AS NECESSARY TO AVOID DAMAGE TO THESE UTILITIES. CALL "811" FOR EXISTING UTILITIES LOCATIONS PRIOR TO ANY EXCAVATIONS. INSTALLATIONS SHALL CONFORM TO THE CITY STANDARD SPECIFICATIONS AND DETAIL PLATES. THE CONTRACTOR SHALL NOTIFY CITY PUBLIC WORKS DEPARTMENT A MINIMUM OF 24 HOURS PRIOR TO THE INTERRUPTION OF ANY SEWER OR WATER SERVICES TO EXISTING HOMES OR BUSINESSES. STORAGE OF MATERIALS OR EQUIPMENT SHALL NOT BE ALLOWED ON PUBLIC STREETS OR WITHIN PUBLIC RIGHT—OF—WAY. NOTIFY CITY A MINIMUM OF 48 HOURS PRIOR TO THE COMMENCEMENT OF CONSTRUCTION. WATER MAIN NOTES EXISTING WATER MAIN LOCATION AND SIZE SHALL BE VERIFIED IN THE FIELD PRIOR TO CONSTRUCTION. NOTIFY ENGINEER OF ANY DISCREPANCIES PRIOR TO ANY INSTALLATIONS. PROVIDE PIPE INSULATION WHERE SEWER (SANITARY OR STORM) CROSSES WITHIN 18" OF WATER MAIN. PROPOSED WATER MAIN SHALL BE PVC (PRESSURE CLASS AWWA C900 WITH DR RATING OF 18). PROPOSED WATER SERVICE PIPE SHALL BE 1" COPPER TYPE K. TRACER WIRE WILL BE LAID WITH ALL PVC WATER MAINS, VALVE BOXES, AND HYDRANTS. MAINTAIN MINIMUM 7.5—FT COVER TO TOP OF ALL WATER MAIN PIPE. SANITARY SEWER NOTES EXISTING SANITARY SEWER LOCATION, SIZE, AND ELEVATION SHALL BE VERIFIED IN THE FIELD PRIOR TO CONSTRUCTION. NOTIFY ENGINEER OF ANY DISCREPANCIES PRIOR TO ANY INSTALLATIONS. PROPOSED SANITARY SEWER MAIN SHALL BE PVC SDR 35. PROPOSED SANITARY SEWER SERVICES SHALL BE 4" PVC SDR 26. STORM SEWER NOTES FIELD VERIFY SIZE, ELEVATION, AND LOCATION OF EXISTING STORM SEWER AND NOTIFY ENGINEER OF ANY DISCREPANCIES PRIOR TO ANY INSTALLATIONS. WHEN CALLED OUT AS PIPE, STORM SEWER SHALL BE REINFORCED CONCRETE PIPE (RCP) ANSI C76 WITH R-4 GASKETS OR, IF ALLOWED BY CITY, HDPE PIPE MAY BE USED. (SEE PLAN FOR LOCATIONS WHERE RCP IS REQUIRED.) HDPE PIPE SHALL MEET THE REQUIREMENTS OF AASHTO M294, TYPE S WITH WATERTIGHT CONNECTIONS. USE SAND/GRANULAR MATERIAL FOR BACKFILLING AND COMPACTION OF HDPE/PVC PIPE IN ACCORDANCE WITH THE REQUIREMENTS OF ASTM 2321. STORM SEWER LENGTHS INCLUDE THE LAYING LENGTH OF THE FLARED—END SECTION. LAYING LENGTH OF APRON TO BE DEDUCTED FROM PAYMENT LENGTH OF PIPE. STORM SEWER PIPES TO BE JOINED TO THE CATCH BASIN MANHOLES W/ APPROVED RESILIENT RUBBER JOINTS TO MAKE THEM GASTIGHT OR WATERTIGHT. CEMENT MORTAR JOINTS ARE PERMITTED ONLY FOR REPAIRS AND CONNECTIONS OF EXISTING LINES CONSTRUCTED WITH SUCH JOINTS. CURB & STREET NOTES REMOVAL AND DISPOSAL OF EXISTING STREET MATERIALS AS REQUIRED FOR CONSTRUCTION IS CONSIDERED INCIDENTAL. SAW—CUT EXISTING BITUMINOUS AND CONCRETE CURB TO PROVIDE BUTT—JOINT. RESTORE DISTURBED STREET TO EXISTING OR BETTER SECTION. BACKFILLING OF CURB IS INCIDENTAL TO CURB INSTALLATION. FOUR INCHES OF CLASS 5 UNDER CURB IS INCIDENTAL TO CURB INSTALLATION. CURB ENDS SHALL TERMINATE IN A THREE—FOOT BEAVER TAIL. Know what's below. CaII before you dig. VICINITY MAP SITE 5 1 Alain SI Col St „SL Mon SI Main St PlaraYto A,NIn 1 L s ,, rnnkw Y *g1,l nd TI Barbara Ln D z Q SUNSET ROAD (COUNTY NW CORNER OF SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 DIY (APR W • POLE TEL B aR o k"'e r-- r NOTES PROPOSED PLAT ZONING PUD EXISTING PLAT ZONING R & PUD MINIMUM LOT DEPTH MINIMUM LOT WIDTH MINIMUM LOT AREA BUILDING SETBACKS STREET (LOCAL) STREET (COLLECTOR) REAR SIDE (PRINCIPAL) SIDE (ACCESSORY) 125 FEET 60 FEET 7,500 S.F. = 25 FEET = 40 FEET = 25 FEET = 10 FEET = 5 FEET 1 J L AX 3 L GARAGE LEGEND ROBINSON DRIVE WETLAND - ELC O 4 930 928 WL x EXISTING OVERHEAD ELECTRIC EXISTING STORM SEWER EXISTING WATER MAIN EXISTING SANITARY SEWER EXISTING STORM MANHOLE EXISTING FLARED—END SECTION EXISTING GATE VALVE EXISTING HYDRANT EXISTING SANITARY SEWER MANHOLE EXISTING CONTOUR EXISTING FENCE DELINEATED WETLAND EDGE DELINEATION BY "WENCK ASSOCIATES" TEST PITS/BORINGS PERFORMED BY WENCK ASSOCIATES Div — 928 - -930— X920.60 s 4.0% *0000 0 PROPOSED WATER PIPE PROPOSED SANITARY SEWER PIPE PROPOSED STORM SEWER PIPE PROPOSED DRAINTILE AND CLEAN—OUT PROPOSED STORM MANHOLE PROPOSED CATCH BASIN PROPOSED FLARED—END SECTION PROPOSED GATE VALVE PROPOSED HYDRANT PROPOSED SANITARY SEWER MANHOLE PROPOSED CONTOUR PROPOSED SPOT ELEVATION (GUTTERUNE, BITUMINOUS SURFACE, OR GROUND SURFACE UNLESS OTHERWISE INDICATED) PROPOSED SILT FENCE PROPOSED DIRECTION OF DRAINAGE PROPOSED RIP—RAP PROPOSED INLET PROTECTION ti -r L J 3 L ROBINSON DRIVE SHEET INDEX CO C1-1 C1-2 C2-1 C2-2 C2-3 C3 C4-1 C4-2 L1 PP RI B/P 2 of 8 TITLE SHEET, NOTES & LEGEND GRADING, DRAINAGE & EROSION CONTROL PLAN GRADING, DRAINAGE & EROSION CONTROL PLAN UTILITY PLAN UTILITY PLAN UTILITY PLAN - WATERMAIN LOOP DETAILS STORMWATER POLLUTION PREVENTION PLAN STORMWATER POLLUTION PREVENTION PLAN LANDSCAPE PLAN PRELIMINARY PLAT RESOURCE INVENTORY BUILD -OUT & PHASING PLAN CERTIFICATE OF SURVEY CE\TRY 1 -ARM I� 5TH ADDITIO\ BLOCK 1 2 3 ROBINSON DRIVE 4 I 111.1 I II(= __=====1- X111' In 1111 I'1 POND 1///I,\111:1 ;1111 III p 11 II y \\1I/'I 11 1 1 1 111 I I II 11 11 it I I 1111 11 n 11 ////1/\ ,,, 1 1 1 T -i iii / 'SAA / HIGH -UNE POLE 0 Drainage& Utility EaseMent WETLAN D 38 L----- 1 37 36 I 35 4 34 33 Mat MORGAN LANE POND 15 1/ 111 11 X11 1 '1 !' 1111 ;1 11111 11,1, 1 11 1 1�r r 1 I —-- — ---- --- /111 CENTURY WETLAND \ FAI 1 KO HIGH—UNE POLE 1 , I I I 1 /1 �+ I Ir / '_ __ ''-1-1- I / / 11// // _ I 1 / / /// i' ' 1 / � // , i Ti 11 —'1 1' ----— ------------ — ------- ----- GEPOSGRTOUND — Oa TITLE SHEET, NOTES & LEGEND CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 Lu H 4 m E E "- co g eL L -0 (13 � C ca �.22ui O ca _ Q0)o E co � co m O Aftor ccs 0_ >0) E 1_ o>•+ TO •tail C -0 0 2 04.25.2014 W H 0 PLAT AMENDMENT - 6TH ADDITION y Lid5 r TITLE SHEET, NOTES & LEGEND PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. 110010 SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 1► 0 40 80 1 INCH = 80 FEET CO NW CORNER OF __ -- SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 891. -898 —K. WL END BIT. PATH CONSTRUCTION WL WL ......................... 898 w� 899 901- 90 LOW c5L00 o C r-- 903 EXISTING DRIVEWAY TO BE REMOVED — INSTALL NEW DRIVEWAY TO ROBINSON DRIVE 902 .......................................................................................... 1.04% PEDESTRIAN CURB RAMP (TYP)........... O 000000000 000000000000 O 00 �,- 0000:00000 O 000000000 0 RO CO EN K STRUC11ON ANCE LLJ 0 x P OW OL 5—WIDE CONCRETE SIDEWALK (TYP)....�..... 40 00' 1 LOW FLOOR = 902.0 LOW FLOOR = 902:0' CD RIP—RAP (TYP) \ (SEEDETAIL) \ s - ______ D r a n a g E ANOKA COUNTY DITCH -a S 10-22-32 BRANCH 1 NWL 895.2 HIM:, 897.3 10' WIDE SODDED EOF ELEV=898.2 •897. ............................. • END STREET SIC.. CURB CONSTRUCTION TEL B X ..0 ................................... GRADING, DRAINAGE & EROSION CONTROL NOTES 1) PRIOR TO ANY GRADING OPERATIONS, THE CONTRACTOR SHALL INSTALL ROCK CONSTRUCTION ENTRANCE (LOCATIONS TO BE DETERMINED — COORDINATE WITH OWNER) AND PERIMETER SILT FENCE AS SHOWN ON PLAN. (CONTACT CITY TO INSPECT EROSION CONTROL MEASURES PRIOR TO GRADING OPERATIONS, IF NECESSARY.) ADDITIONAL SILT FENCE MAY BE NECESSARY IF LOCAL CONDITIONS REQUIRE. 2) THE CONTRACTOR SHALL PERFORM SITE GRADING ON AN AREA—BY—AREA BASIS TO MINIMIZE UNSTABILIZED AREAS. AS EACH AREA IS COMPLETED, ALL EXPOSED SOILS MUST HAVE TEMPORARY EROSION CONTROL PROTECTION OR PERMANENT COVER WITHIN SEVEN (7) DAYS. 3) SEE SHEET C4.1 AND C4.2, STORM WATER POLLUTION PREVENTION PLAN (SWPPP) FOR ADDITIONAL EROSION CONTROL NOTES AND SITE SEQUENCING. NOTES ....................898 ///////////// / 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES 3) THE REMOVAL OR IMPORTING OF SOILS OFF-SITE IS PROHIBITED WITHOUT PRIOR CITY APPROVAL. B9 896...... ...•895•••... WETLA\3 SURFACE DRAINAGE FINISHED GRADE AT REAR OF HOUSE DRAINAGE & UTILITY EASEMENT LOWEST FLOOR ELEVATION PROPOSED ELEVATION AT GARAGE DOOR (FRONT) RECOMMENDED SIDE FOR GARAGE 001 . SEWO LOW FLOOR = 902.0 9 (904 L J LOT LINE RECOMMENDED HOUSE TYPE S.E.W.O. — SPLIT—ENTRY WALK—OUT R/W STREET TYPICAL LOT LAYOUT LOT NO. ......................... PROP POND B NWL 895.5 HWL 898.1 TOP OF BERM 898.5 PROVIDE INLET SEDIMENT CONTROL FOR NEW STORM SEWER INLETS WITHIN 24 HOURS OF STRUCTURE INSTALLATION (TYP) Know what's below. CaII before you dig. GRADING, DRAINAGE & ESC PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION RCWD COMMENTS CITY REVIEW #1 Lu 1- /21 ao 4 0) E E— as L m r• ,d 0� AAr� L (y • COco .222°2 w 2 2 •L . 0 c Q.0) • o N 07 U o as m0_ E • L 2 0 C _c• o -0 0 2 04.25.2014 w 0 PLAT AMENDMENT - 6TH ADDITION y Lid5 GRADING, DRAINAGE & ESC PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. 41111111 SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 1► 0 IIIIII;iiiiii 30 1 INCH = 30 FEET C1-1 END BIT. PATH CONSTRUCTION ............................................ .898. .899 $5.4 11� O 0 m J .900- ....... _ 1 901 .... WL WL WL 0 g0 END STREET & CURB ag 8 CONSTRUCTION 897_ E 898 -898 0 \ S N. s 899... RIP–RAP (TYP) — (SEE. -DETAIL) \ \ 111L __- Drainage\& Uti ity 5–WIDE CONCRETE SIDEWALK (TYP) ANOKA COUNTY DITCH 10-22-32 BRANCH 1 NWL 895.2 HWL 897.3 10' WIDE SODDED EOF ELEV=898.2 • NOTES -o se ent '1M \ 4 • 898. wc- N SURFACE DRAINAGE FINISHED GRADE AT REAR OF HOUSE DRAINAGE & UTILITY EASEMENT LOWEST FLOOR ELEVATION PROPOSED ELEVATION AT GARAGE DOOR (FRONT) RECOMMENDED SIDE FOR GARAGE (01.7 SEWO LOW FLOOR = 902.0 9 L 1 LOT LINE RECOMMENDED HOUSE TYPE S.E.W.O. – SPLIT–ENTRY WALK–OUT R/W STREET TYPICAL LOT LAYOUT LOT NO. 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES 3) THE REMOVAL OR IMPORTING OF SOILS OFF-SITE IS PROHIBITED WITHOUT PRIOR CITY APPROVAL. END BIT. PATH CONSTRUCTION fgb RIP–RAP (TYP) 901- •900 899. .898. 8 89' 900• 90' L__ ....................................... • ries 1f<1iii`.1 1iii 1 \ ♦1 L/ 1 1 ,/ 1 • ..................897' PROVIDE INLET SEDIMENT CONTROL FOR NEW STORM SEWER INLETS WITHIN 24 HOURS ..OF. ..STRUCTURE INSTALLATION (TYP) SEE DETAIL ...................................... ................. 896 ........................... .....................................................................896. ..................... 895...................... 894........... 893.............. 892................ - 891........... 890. •••• 889- .................................. EXISTING POND G1 NWL 895.5 HWL 896.7 889. 890• .891 892............................................................................................................ 893.................................................................................................................. 894 •895• 896. 896 ............895 ...............894' 6 n .. 893................... 892 891 .............. . 890 .......................................................... BAFFLE WEIR (TYP) (SEE DETAIL) 03 Off) coo 690 \ \ APPRO IMATE'POND EOF ... ELEV 899.5 (NOT FIELD VERIFIED) 897. 892 . EXISTING POND G3 NWL 895.5 HWL 896.7 N 898........... \ \ \ GRADING, DRAINAGE & EROSION CONTROL NOTES 1) PRIOR TO ANY GRADING OPERATIONS, THE CONTRACTOR SHALL INSTALL ROCK CONSTRUCTION ENTRANCE (LOCATIONS TO BE DETERMINED – COORDINATE WITH OWNER) AND PERIMETER SILT FENCE AS SHOWN ON PLAN. (CONTACT CITY TO INSPECT EROSION CONTROL MEASURES PRIOR TO GRADING OPERATIONS, IF NECESSARY.) ADDITIONAL SILT FENCE MAY BE NECESSARY IF LOCAL CONDITIONS REQUIRE. 2) THE CONTRACTOR SHALL PERFORM SITE GRADING ON AN AREA–BY–AREA BASIS TO MINIMIZE UNSTABILIZED AREAS. AS EACH AREA IS COMPLETED, ALL EXPOSED SOILS MUST HAVE TEMPORARY EROSION CONTROL PROTECTION OR PERMANENT COVER WITHIN SEVEN (7) DAYS. 3) SEE SHEET C4.1 AND C4.2, STORM WATER POLLUTION PREVENTION PLAN (SWPPP) FOR ADDITIONAL EROSION CONTROL NOTES AND SITE SEQUENCING. to to 0) 0) rn 892 n AA .......................897................................. .........................896....................................... ..896. ...................... ........903. < < sc- \ t' \ l EXISTNGPOND 62•......:• :: NWL 895 5 ...........:: .. HWL 896:7... ......... ad? . e88 _... 6898 6.1999 69297 6 6993... 96 8993 9st. 6909 BAFFLE WEIR (TYP) (SEE DETAIL) e -902N r, r, 11 8r 11-e 1* i F- L 1 \ 1 V L._ 0.50% 2� 5 . 1i,r,,s e • I I\111 1F! 1- /\ I\I I I \I 1 \ \/ /—\ 1 • Know what's below. CaII before you dig. GRADING, DRAINAGE & ESC PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: A.G. DESIGN BY: C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION RCWD COMMENTS CITY REVIEW #1 Lu 1- O3 4 0) E > E C0 as N -0 AOA� L � �y • C c • co .5) .c° ui c '� o O (0 N Q•- y N O c_ ▪ Il >*co 0) E(13 UL c N > -0 • c a.) O -O U 2 04.25.2014 W Q 0 PLAT AMENDMENT - 6TH ADDITION y 5 r GRADING, DRAINAGE & ESC PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. IIS SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 1► 0 15 30 1 INCH = 30 FEET C1-2 _ NW CORNER OF _ -- SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 Well 0 WL WL WL EXISTING WELLS ON PROPERTY TO BE ABANDONED PER LOCAL AND STATE REGULATIONS (TYP) EXTEND AND CONNECT NEW SERVICES TO EXISTING HOUSE EXISTING SEPTIC SYSTEM DRAINFIELD TO BE REMO LOCAL AND STATE_REGU II CBMH RIM,9 INV 896.45 CBMH 203 I RIM 900.85 INV 897.35-N L Ip -V-89 00--5- — INV 895.91-E,W II II II II 7 PROPOSED 5 -FT SID _ALK CB 213 RIM 900.10 INV 897.10 SAN MH 65 RIM 900.70 INV 885.77-W INV 885.72-E EXISTING WELLS ON PR BE ABANDONED PER L STATE REGULATIONS ( UO / / /� APRON 2100 \V \ / // 24" INV 895.150 11 1 1 I // (i — — \ 11 1 1 III II �� �� 1 1 I I I I I I 4 \\ 26'\-1\"1 PIPE I I I I I 11 0 \6.4% ' I I I I I I III II ' I II II III II APRON 601 1II 11 II I BMH 1501 18 INS/ 893.00 II I I ISM 90h1.25 1 1 1 I INV 896',.60- // // / i I I4V 895,60-E // / / APRONVaOfk --_ _ _ _ STRUCTUREET 15" INV 895.50 // (2EE/ DETAIL) 1 PROPOSED 10" CLASS APRON 600 ` \ 18" RC INV 894.48 APRON 600 -,___ - - D r a I n c 24" INV 895.20 - 32'-24" PIPE 111, ® 0.94% APRON 502 INV 897.10 L 3IX NOTES /////////// 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES w�- 0 WELL #10 10" DIP PLUG 14'-10" PVC ® 0.28% INV 884.97 SAN MH 68 RIM 901.70 INV 884.93-N INV 884.88-S II, Know what's below. CaII before you dig. UTILITY PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 w 1- 0 CENTURY FARM NORTH - PUD / PRELIMINARY PLAT AMENDMENT - 6TH ADDITION UTILITY PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. ;r0 SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651)361-8701 NORTH 0 15 30 1 INCH = 30 FEET C2-1 —Wl_ 10" DIP PLUG 14'-10" PVC 0 0.28% INV 883.52 WL WL WL APRON 106 INV 898.50 r - 10' MIN. 1330.13 -o iP1 m 0 0 -n 1r- > N N 01 .5 — N S MH 62 RI ... INV 883.03-N,W INV 882.98-E 1 EX CB RIM 901.08 INV 896.12 CONNECT TO EXISTING VIA - V CORE DRILL ® INV 896.65 (FIELD VERIFY) EX. 15" PIPE j V I 1..21OPOSED 10" CLASS 52 DIP 1M 20 NOTES Drainage\8c Uti ity asem€nt \1I/7 3 241 L " PVC 0 0.28% ROBINSO DRIVE 0 0 \1�/, 0 \ ■ 75'-15" PIPE ® 0.27% v34'-18" PIPE ® 0.29% u, 125'-12" PVC ® 0.22% 265 LF 1 I I PVC ® 0.22% PROPOSED 12" CLASS SSI DIP Ex. 1 DIP CL 52 W. �—I 11111 — ■i II J H ADL F! I I F<N 1 1 Is' 80'-18" PIPE © 0.21% CONNECT TO EXISTING 12" SANITARY STUB (INV 881.84 - FIELD VERIFY) CONNECT TO EXISTING 12" WATERMAIN STUB (FIELD VERIFY) EX CB (SLAB ONLY) TOP SLAB 898.58 INV 895.50 CONNECT TO EXISTING WATERMAIIN W/ 1" CORPORATION (TYP) CONNECT TO EXISTING SANITARY SEWER WITH "SADDLE TAP" CONNECTION EX CB RIM 900.55 INV 896.18 EXISTING 8" DIP WATERMAIN STUB (FIELD VERIFY) APRON -100 — — — 24" INV 895.50 EXIST 21" RC FES --------- Th \ I APRON 300 12" INV 895:5- / CB 301 RIM 898.10 INV 895.70 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES II I I II I II II I I 1\ \ \ \ II II II 11 \ V A v N AA AA \ \ Imo \\ \ I — .- r r L BL 'I r. 2 r-.1‘ i i 1F`1 v 1 2\ O 3 b 11111111 r I I\ r-. ,s A I. 1 IV 11- • I� Know what's below. CaII before you dig. UTILITY PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 w 1- 0 4 CENTURY FARM NORTH - PUD / PRELIMINARY PLAT AMENDMENT - 6TH ADDITION UTILITY PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. ;r0 SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651)361-8701 NORTH 0 15 30 1 INCH = 30 FEET 02-2 7 C 3 1 3 1 2 1 J L J L J L I J L J L _ L , L 111 IOW 1111111111111111111111"11111 ROBINSON DRIVE IIA pm !Ye r II II O /1/:/:11/1;f „,\ I� 111111111 ti�� 1 ��fI C:,44:644-1-1- �I� VIII ROBINSON DRIVE Drainage,& Utility -- Eaaar6T t / \ / > / 1 / /\ / \ / GARAGE ----1---1 LL_L_J 1POLE111 1 HH LINE GH -LINE POLE 1- 0 U LEMBANKMENT897; RESTORE EXISTING DRIVEWAYS PER WATERMAIN INSTALLATION (TYP) N .11 ik CONNECT TO EXISTING 8" WATERMAIN STUB (FIELD VERIFY)11, NOTES n 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES 7/7 f Know what's below. Call before you dig. UTILITY PLAN - WATERMAIN LOOP CENTURY FARM NORTH - 6TH ADDITION UKAVVN 3Y: UtbILN tiY: A.G. C.W.P. CHCKD BY: PROJ. NO. C.W.P. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 w Q N 4 PLAT AMENDMENT - 6TH ADDITION UTILITY PLAN - WATERMAIN LOOP PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. 1P0 SITE PLANNING & ENGINEERING PLOWS ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 0 50 100 1 INCH =100 FEET 02-3 co a R❑AD (COUNTY W z NW CORNER OF ___ ;ter SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 DWY (APRFCI) W i • ! /• 1 oralfil ��,�O��O"�O�WWIIv� "'1l 0 ROBINS() i VE - A I'll lipmemmtimm��`vIIIII1rqk TEL BC X L GARAGE ///////////J WETLAND /, wJ SYMBOL BOTANICAL NAME ** COMMON NAME ** SIZE AT INSTALL QTY OVERSTORY TREES O ACER RUBRUM POPULUS TREMULOIDES TILIA AMERICANA TILLIA EUCHLORA QUERCUS ALBA QUERCUS BICOLOR RED MAPLE QUAKING ASPEN AMERICAN LINDEN REDMOND LINDEN BUR OAK SWAMP WHITE OAK 2-1/2" B&B * 120 EVERGREEN TREES PICEA GLAUCA DENSATA BLACK HILLS SPRUCE 4' HEIGHT B&B 14 PINUS STROBUS WHITE PINE 6' HEIGHT B&B 13 PINUS NIGRA AUSTRIAN PINE 6' HEIGHT B&B 13 UNDERSTORY TREES CRATAEGUS CRUS-GALLI AMELANCHIER X GRANDIFLORA MALUS SARGENTILL 'SELECT A' THORNLESS COCKSPUR HAWTHORN AUTUMN BRILLIANCE SERVICEBERRY FIREBIRD CRABAPPLE 1-1/2" B&B * 42 * NO MORE THAN 50% OF TREES CAN BE ONE ANY ONE SPECIES ** EXAMPLE SPECIES - VERIFY SPECIES REQUIREMENTS AND AVAILABILITY = EXISTING TREES (TO REMAIN) - 8 TOTAL ALONG SUNSET ROAD NOTES 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES 1 " P 141M tr' 11 II Illa PIM_ „AIWA IIPAINIIIIIIIMIllk myik• New' - - OBINSON (r _ (r^ -_- � im�� I�� - - - -E--- 1_44 t\ \ -I_44,\\ ' 11 11 P 0 N D A \\\ ,'\\ \ ,17 ELC ELC WETLAND FA M _ _ I I \ 1 I II II II POND I II 'I; /11 •1 1 ,- — —— III J r/ di / 1 r/ L7'� 11 l " r I� I I/17 I I I I I r \\ \ \ \ \ \ \ \ \ \ \ ` \\ \ `\\\ \ \\ \\ \ \ \\ q. POND \ \'' \ II I II \\\ 1 • A`.v v v ...**,- N N • \\ \A\\ \- vN I V \N'.1:,,, I I � I I vv \\\\ I 11 \ \ \ Vv�Av�.vwAwVvvv I� AA \ )\\\\\\ V ,:i., 11 I \\ \\ -•-...„ .\\ \\:\ \ \ \ \ \ \ 1 \1 I I II 11 I 11II / II I i 1 i_ / J /i / J // / / I�– --,.` .\\\ / \ \\ I 1 v v v I + 11 I I II 1 I III '-�� .e m . mne ¢e ¢o m /1// ��/ HIGH -LINE POLE r / 7/ r / ///,' / l--,� \ - ' ,rr POND POND C I- IMI 1, F / 5 I1 ADDI 1 L -1 2 1 B L J L ROBINSON DRIVE IC C K II 4 5 6 7 8 MORGAN F- 1 9 II 10 3 I I I 1 I I II --L r 13 C CCT 0 S1 KO BC 66 Know what's below. CaII before you dig. LANDSCAPE PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: A.G. DESIGN BY: C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION Lu 1- 0 CENTURY FARM NORTH 6TH ADDITION CA W LANDSCAPE PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. SITE PLANNING & ENGINEERING PLOWS ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 0 30 60 1 INCH = 60 FEET L1 ____ NW CORNER OF ter SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 DWY N87°36 160 (APR /,. 1,9"E 0) 0 RoW \pe _Q�oQ N87°36'19' 360.0 .... 62.00 8,060 SF PROPOSED DRAINAGE & UTILITY -EASEMENT 62.00...._ 8,060 SF 6 ••8,710 SF 10 EXISTING DRAINAGE & UTILITY EASEMENT PER PLAT OF CENTURY FARM ---- 3RD ADDITION 85019-- 1 8,060 SF 2 {— I I I I L 62:00 .................... 10, 725 82.42 1.289_53............................_................•.r...................._...................._.........._:::••-•.:::::: iiia: ii;:•�ir�: ii. EX. DRAIN FIELD CO -0 O >-- ED U Q EDW z NW CORNER OF ____ SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 DWY N87°36 60 (APR Well 0 yo"'e N87°36'19"E 360.00-- No N O z EXISTING DRAINAGE & UTILITY EASEMENT PER PLAT OF CENTURY FARM --- 3RD ADDITION 0 '19"E WELL #26 00 • /N87°36'19"E 299.97 W o7 0o 0 TEL BCX 17/////////// GARAGE ///////////Z ©`IELL b0 OVELL #25 0 0 � N 0 u) 4 1NO I I. . " z `l., 1 , —\ PARK Drainage& Utility Easen'rr\nt W\TLAND 62. O O N N 0 O z 1 1! ---------------- ------------------ N • N 'I cn 27447 S87°36'19"W��—._._.,..- ,:;; 1..05 .../1`,1,• 87° 6136'19"W / J I 19.03 -_= CL IN I R" 5TI1 ADDI-IC • ......................7-071''3{,1:W...:.1.�:::.:1: .....h w..; • E• •EI 4•T.._ 14.....P•-_-AT.....G.---G-E•144•6•R FARM 4TH ADDITION PON •••• • • • : S6 ,RAINAGE & . UTILITY EASEMENT I1\136'01'14'1E 93.65 \ 26,70 `... WE4L #2�\ � ..........._.._..,.3.1.'242"W 23.26 \ • — -N-8-7'46' 362 E — POND PA/K • O MON WELL XISTING FUGH—LINE POLE / KO m 6 K a go go KO IGH—LINE. POLE MON WELL PROPERTY INFORMATION NO "FEMA FLOOD ZONE A" LOCATED ON PROPERTY. TLR .t DOWEIPLI\ E EAS- v ENT DE .....EC 524.24 N87°36'19"•.. PONDCNI C`1 -30.45 r J L _ D RAE. N8736'19"E ROBINSON DRIVE I •• 6 I HORGAN ��— LA( 1 —_ } ice.../ .. ._... ..._..__................ h � 1 f1Li7 8 9 10 S�1. 11I�?.112.3�j. I \'• r7 0 z ILO 60 go HIGH—LINE POLE I Know what's below. CaII before you dig. RESOURCE INVENTORY CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION Lu 0 CENTURY FARM NORTH 6TH ADDITION RESOURCE INVENTORY PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651)361-8210 FAX: (651)361-8701 NORTH 1 INCH = 60 FEET 1 NW CORNER OF `SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 iks3W Lire DWY (APR L 1\-1 AUUI I IUI\ 2 1 B L J L ROBINSON DRIVE 1 1 C K 1 3 L 4 L__ 3 3 J W TEL B X WELAND ..ORGAN 6 POND / HOUS 4 I I I I I I I 7 1 8 I I L — - — — 9 L 10 5 1- 10 POWE POLE 11 1/ 7 7- E POLE 0Y DENTE INE pRIV 6 ATE DRIVE 3 14 15 —� - / 5 4 POWER POLE E TV BIX POWER ori r WETLAND \ ▪ ELD I II I 1 I I I I HIGH—LINE POLE 1 I 11 Iv OTTTH 1 , , 1 1 1 ,1 I 1 1 1 ----J ILS • ____�_�_�' UNDER GROUND � GAS POST o \III, \\ I I/ / / N BUILD -OUT & PHASING PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 W 1— N 4 a CENTURY FARM NORTH - PUD / PREL PLAT AMENDMENT - 6TH ADDITION y W 5 r BUILD -OUT & PHASING PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. IIS SITE PLANNING & ENGINEERING PLOWS ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 N®RTH /111r11111N\ 1► 0 30 60 1 INCH = 60 FEET B/P CITY OF LINO LAKES RESOLUTION NO. 14-49 RESOLUTION ACCEPTING PETITION AND WAIVER AGREEMENT ROBINSON DRIVE IMPROVMENT PROJECT CENTURY FARM NORTH WHEREAS, pursuant to Resolution No. 14-43 adopted by the City Council on June 9, 2014, the City approved the Amendment to PUD Development Stage Plan/Preliminary Plat for Century Farm North; and WHEREAS, plat requires the improvement of Robinson Drive by the extension of street, sanitary sewer, watermain, storm sewer and pedestrian improvements ("Improvement Project"); and WHEREAS, Century Farm North Development, Inc. and Jeffrey E. Morell (collectively, the Owner) are the owners of certain real property in the City abutting said Improvement Project; and WHEREAS, the Owner wishes the City to construct the Improvement Project without notice of hearing or hearing on the special assessments levied to finance the Improvement Project, and to levy up to $950,000 of the cost of the Improvement Project against the Subject Property; and WHEREAS, the Improvement Project requires that the City obtain certain portions of the Owner' property for street right-of-way, temporary construction easements and drainage and utility easements; and WHEREAS, the Owner wishes to donate to the City the necessary right-of-way and easements to provide for the construction of said Improvement Project; and WHEREAS, the City is willing to construct the Improvement Project without certain notices or hearings, provided the assurances and covenants, as detailed in the Petition and Waiver Agreement, are made by the Owner to ensure that the City will have valid and collectable special assessments as they relate to the Subject Property to finance all of the costs of the Improvement Project, that all necessary right-of-way and easements are provided to the City at no cost; NOW, THEREFORE, BE IT RESOLVED by the City Council of The City of Lino Lakes, Minnesota: 1. The City accepts the Petition and Waiver Agreement and authorizes the Mayor and City Clerk to execute said agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this day of , 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: 1 The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk PETITION AND WAIVER AGREEMENT This Agreement made this day of , 2014, by and between the City of Lino Lakes, a Minnesota municipal corporation ("City"), and Century Farm North Development, Inc. & Jeffrey E. Morell, a single person, (collectively, the "Owner"). WITNESSETH: WHEREAS, the Owner is the fee owner of certain real property in the City described in Exhibit A hereto (the "Subject Property"); and WHEREAS, the Owner desires to have certain public improvements constructed to serve the Subject Property as described in Exhibit B hereto (hereinafter referred to as the "Improvement Project"); and WHEREAS, the Owner wishes the City to construct the Improvement Project without notice of hearing or hearing on the special assessments levied to finance the Improvement Project, and to levy 100% percent of the costs up to $950,000 of the Improvement Project against the Subject Property on a per lot basis; and WHEREAS, the Improvement Project requires that the City obtain certain portions of the Owner's property for street right-of-way and storm water ponding; and WHEREAS, the Owner wishes to donate to the City the necessary right-of-way to provide for the construction of said Improvement Project; and WHEREAS, the City is willing to construct the Improvement Project without certain notices or hearings, provided the assurances and covenants hereinafter stated are made by the Owner to ensure that the City will have valid and collectable special assessments as they relate to the Subject Property to finance all of the costs of the Improvement Project and that all necessary right-of-way is provided to the City, at no cost to the City; and WHEREAS, were it not for the assurances and covenants hereinafter provided, the City would not construct the Improvement Project without such notices, hearings and right-of-way and is doing so solely at the behest, and for the benefit, of the Owner. NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The Owner hereby petitions the City for construction of the Improvement Project. 2. The Owner represents and warrants that it is the owner of 100 percent of the Subject Property, that is has full legal power and authority to encumber the Subject Property as herein provided, and that as of the date hereof, it has fee simple absolute title in the Subject Property, which is not subject to any liens, interests or encumbrances, except as listed on the attached Exhibit D. 3. The Owner requests that up to $950,000 of the cost of the Improvement Project be assessed against the Subject Property ("Project Cost"), divided equally per lot. The parties agree and understand that the principal amount to be assessed for the Improvement Project will not exceed the Project Cost. 4. The City shall provide the plans and specifications for the Improvement Project. The cost of drafting the plans and specifications ("Design Cost") is included in the Project Cost and will be assessed with the other Project Costs pursuant to the provisions of this Agreement if the Improvement Project is constructed. In order to ensure that the City is reimbursed for the Design Cost incurred by the City in the event the Improvement Project does not proceed, the Owner agrees to and requests that the Design Cost be assessed against the Subject Property. The Design Costs are estimated to be $30,000. The actual amount of the reasonable Design Costs is to be assessed, even if it exceeds the estimate. Payment of the special assessments for the Design Costs pursuant to this paragraph shall be in installments over a period of two years bearing an interest rate set at 2% over the rate at which the City sold bonds at the City's most recent bond sale. 2 5. The Owner waives notice of hearing and hearing pursuant to Minn. Stat. section 429.031, on the Improvement Project, notice of hearing and hearing on the special assessments levied to finance the Improvement Project pursuant to Minn. Stat. section 429.061, and any notice of hearing or procedure specified under the City Charter; and specifically requests that the Improvement Project be constructed and special assessments levied therefore against the Subject Property without hearings. 6. The Owner waives the right to appeal the levy of the special assessments in accordance with this Agreement pursuant to Minn. Stat. section 429.081, or reapportionment thereof upon land division pursuant to Minn. Stat. section 429.071, subd. 3, or otherwise, and further specifically agrees with respect to such special assessments against the Subject Property or reapportionment that: a. Any requirements of Minn. Stat. chapter 429 or the City Charter with which the City does not comply are hereby waived by the Owner; b. The increase in fair market value of the Subject Property resulting from construction of the Improvement Project will be at least equal to the amount specified in paragraph 3, and that such increase in fair market value is a special benefit to the Subject Property; c. Assessment of the above-specified cost of the Improvement Project against the Subject Property is reasonable, fair and equitable and there are no other properties against which such cost should be assessed; and d. The Owner further specifically waives notice and right to appeal reapportionment of such special assessments upon land division pursuant to Minn. Stat. section 429.071, subd. 3. 7. Except as otherwise provided in paragraph 4 above, the Owner understands and agrees that the City may provide for the payment of such special assessments in installments over a period of ten (10) years bearing an interest rate set at 2% over the rate at which the City sells bonds for funding the Improvement Project. However, the decision regarding the period of time over which the special assessments may be paid and the interest rate to be applied is in the absolute and sole discretion of the City Council, subject only to limitations imposed by law. 8. The Owner agrees to provide to the City, at no cost to the City, the right-of-way and permanent easements required to construct the Improvement Project as legally described in Exhibit C hereto. The road right-of-way (Robinson Drive) shall be dedicated to the City by plat. 9. Owner represents and warrants that the Subject Property is not so classified for tax purposes as to result in deferral of the obligation to pay special assessments; and Owner agrees that it will take no action to secure such tax status for the Subject Property during the term of this Agreement. 3 10. The covenants, waivers and agreements contained in this Agreement shall bind the successors and assigns of the Owner and shall run with the Subject Property and bind all successors in interest thereof. It is the intent of the parties hereto that this Agreement be in a form that is recordable among the land records of Anoka County, Minnesota, and they agree to make any changes in this Agreement that may be necessary to effect the recording and filing of this Agreement against the title of the Subject Property. 11. This Agreement shall terminate upon the final payment of all special assessments levied against the Subject Property regarding the Improvement Project, and the City shall thereupon execute and deliver such documents, in recordable form, as are necessary to extinguish its rights hereunder. above. IN WITNESS WHEREOF, the parties have set their hands the day and year first written 4 CITY OF LINO LAKES By Its Mayor By OWNER CENTURY FARM NORTH DEVELOPMENT, INC. By Gary Uhde By Its City Clerk Jeffrey E. Morell STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of 20, by Jeff Reinert and Julianne Bartell, the Mayor and City Clerk of the City of Lino Lakes, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the City. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of 20_, by Gary Uhde, the of Century Farm North Development, Inc., a corporation under the laws of the State of Minnesota. Notary Public 5 STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this day of 2014, by Jeffrey E. Morell, a single person. Notary Public 6 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY DESCRIPTION - (Century Farm outlot) OUTLOT A CENTURY FARM NORTH 5TH ADDITION DESCRIPTION (More11 parcel) THAT PART OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7, TOWNSHIP 31, RANGE 22. BEGINNING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7, TOWNSHIP 31, RANGE 22, THENCE SOUTH ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7, ON AN ASSUMED BEARING OF S00 27'12"E A DISTANCE OF 120 FEET; THENCE N87 36' 19"E EAST A DISTANCE OF 360 FEET; THENCE, PARALLEL WITH SAID WEST LINE OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER TO A POINT OF INTERSECTION WITH THE NORTH LINE OF SAID SOUTHWEST QUARTER OF THE NORTHWEST QUARTER; THENCE WESTERLY ALONG THE NORTH LINE OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER TO THE POINT OF BEGINNING. DESCRIPTION OF PARK VACATION: THAT PART OF THE PARK AREA DEDICATED IN CENTURY FARM NORTH 5TH ADDITION, ANOKA COUNTY, MINNESOTA DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID PARK OF SAID CENTURY FARM NORTH 5TH ADDITION; THENCE EASTERLY ALONG THE NORTH LINE OF SAID PARCEL ON AN ASSUMED BEARING OF NORTH 87° 36' 19" EAST A DISTANCE OF 205.57 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING ALONG THE NORTH LINE OF SAID PARCEL ON A BEARING OF NORTH 87° 36" 19" EAST A DISTANCE OF 180.00 FEET; THENCE SOUTH 02° 23' 41" EAST FOR A DISTANCE OF 131.18 FEET; THENCE SOUTH 87° 36" 19" WEST A DISTANCE OF 180.00 FEET; THENCE NORTH 02° 23' 41" EAST FOR A DISTANCE OF 131.18 FEET TO THE POINT OF BEGINNING. 7 EXHIBIT B IMPROVEMENT PROJECT The improvement of Robinson Drive from Sunset Avenue to Morgan Lane for the construction of street, sanitary sewer, watermain within Robinson Drive, watermain improvements along Sunset Avenue from Robinson Drive to Century Trail for the purpose of looping the watermain, storm sewer, and pedestrian improvements conceptually depicted in the concept plans attached hereto. 8 _ NW CORNER OF _ -- SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 Well EXHIBIT B WL WL WL EXISTING WELLS ON PROPERTY TO BE ABANDONED PER LOCAL AND STATE REGULATIONS (TYP) EXISTING SEPTIC SYSTEM DRAINFIELD TO BE REMO LOCAL AND STATE_REGU EXTEND AND CONNECT NEW SERVICES TO EXISTING HOUSE CBMH 203 1 RIM 900.85 INV 897.35-N L KV -89 00--5- - INV 895.91-E,W 7 I PROPOSED 10" CLASS 01 RIM 899.85 INV 895.60 PROPOSED 5 -FT SID _ALK CB 213 RIM 900.10 INV 897.10 SAN MH 65 RIM 900.70 INV 885.77-W INV 885.72-E UO APRON 2100 \V // 24" INV 895.150 \2\6'\\ 1 II Il �� — — — 11 1 1 11 4 11 26'1 11$ % PIPE 1 11 � � I �� \0\\611 11. \38%\ I II EXISTING WELLS ON PR BE ABANDONED PER L STATE REGULATIONS ( I II L`' S> i V /R8913.00 1 �� I18"//1111/11211 /\II / II I/1 I JI 1 11 I1I I 1 \ IN��89098 .z1(5)_ 1 o-wc, 11 I INV 895,60-E // / / APROt/7750a---_ -- - - - _ POND' OUTLET 15" INV 895.50 STRUCTURE // (SEE/ DETAIL) APRON 600 ` \ 18" RC INV 894.48 APRON 600 ----- - D r a I n c 24" INV 895.20 - 32'-24" PIPE 111, ® 0.94% APRON 502 INV 897.10 L 3IX NOTES /////////// 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES w�- 0 WELL #10 10" DIP PLUG 14'-10" PVC © 0.28% INV 884.97 SAN MH 68 RIM 901.70 INV 884.93-N INV 884.88-S Know what's below. CaII before you dig. UTILITY PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 w 1- 0 CENTURY FARM NORTH - PUD / PRELIMINARY PLAT AMENDMENT - 6TH ADDITION UTILITY PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. ;r0 SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651)361-8701 NORTH 0 15 30 1 INCH = 30 FEET C2-1 —Wl_ WL WL WL 10" DIP PLUG 14'-10" PVC 0 0.28% INV 883.52 EXHIBIT B APRON 106 INV 898.50 r L-- S MH 62 RI ... INV 883.03-N,W INV 882.98-E 1 EX CB RIM 901.08 INV 896.12 CONNECT TO EXISTING VIA - v CORE DRILL ® INV 896.65 (FIELD VERIFY) EX. 15" PIPE j H ADL I I I I I I I I I I II 1 1 I I 2 II I I —J I I B L', rs i. r. 1. 1i- i.1. F! I 1 he. 11\1 I 11\1 1\ v 1 1 • .i NI r r. r. 1 1 1 F;1 \I 1-- ue 1 75-15" PIPE ® 0.27% \,34'-18" PIPE ® 0.29% 125-12" PVC ® 0.22% 265 LF 1 I FilOPOSED 10" CLASS 52 DIP 80'-18" PIPE © 0.21% APRON -100 - - - 24" INV 895.50 CONNECT TO EXISTING 12" SANITARY STUB (INV 881.84 - FIELD VERIFY) CONNECT TO EXISTING 12" WATERMAIN STUB (FIELD VERIFY) EXIST 21" RC FES - - - - -INV 845.35_ EX CB (SLAB ONLY) TOP SLAB 898.58 INV 895.50 CONNECT TO EXISTING WATERMAIIN W/ 1" CORPORATION (TYP) CONNECT TO EXISTING SANITARY SEWER WITH "SADDLE TAP" CONNECTION EX CB RIM 900.55 INV 896.18 EXISTING 8" DIP WATERMAIN STUB (FIELD VERIFY) 1M 20 Drainag \8c Utility Easement 3 NOTES Nit /*- CB 301 RIM 898.10 INV 895.70 .PE APRON 300 12" INV 895:50 - - 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES -- -------- II I II I it 11 11 11 II II II II II 1 AA AA r N ®\ 2\ O 3 6 111111111 \ I I\ r-. ,s A \ 1 1 I V I -F--1 11- 1 F1 1 \/ 1% ♦/ /\ I r Know what's below. CaII before you dig. UTILITY PLAN CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 w 1- 0 CENTURY FARM NORTH - PUD / PRELIMINARY PLAT AMENDMENT - 6TH ADDITION UTILITY PLAN PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. 4'4 SITE PLANNING & ENGINEERING PLOWE ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651)361-8701 NORTH 0 15 30 1 INCH = 30 FEET 02-2 EXHIBIT B 7 C 3 1 3 1 2 1 J L J L J L ROBINSON DRIVE J L L L J L _ J 111 ROBINSDRIVE W 0111111111111111111".111 pm !Ye - I II IIII I I II II /III II II O 1, IIIA I� II III I. �ti III„ II II I III II � II IIIII I I II O // /1 I I IIII / \ / > / 1 / /\ / // / / \ / T )II C GARAGE //////////// 1 _J } 1— c.) U LEMBANKMENT897; HIGH -UNE POLE RESTORE EXISTING DRIVEWAYS PER WATERMAIN INSTALLATION (TYP) .1I ik CONNECT TO EXISTING 8" WATERMAIN STUB (FIELD VERIFY) NOTES n 1) SEE SHEET CO FOR LEGEND AND CONSTRUCTION NOTES 2) SEE "STORM WATER POLLUTION PREVENTION PLAN" FOR SITE SEQUENCING AND ADDITIONAL EROSION CONTROL NOTES Know what's below. Call before you dig. UTILITY PLAN - WATERMAIN LOOP CENTURY FARM NORTH - 6TH ADDITION UKAVVN 3Y: UtbILN tiY: A.G. C.W.P. CHCKD BY: PROJ. NO. C.W.P. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION CITY REVIEW #1 N 4 PLAT AMENDMENT - 6TH ADDITION UTILITY PLAN - WATERMAIN LOOP PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. 1P0 SITE PLANNING & ENGINEERING PLOWS ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 0 50 100 1 INCH =100 FEET 02-3 EXHIBIT C LEGAL DESCRIPTION OF RIGHT-OF-WAY All that part of Robinson Drive as shown on the preliminary plat of CENTURY FARM 6TH ADDITION, dated April 25, 2014 together with drainage and utility easements for stormwater management purposes. 9 lf)t - 0 O >-- z W z NW CORNER OF ___ ;ter SW 1/4 OF NW 1/4 OF SECTION 7, T31, R22 DWY N87°36 160 (APR /,. 14"E C) C) 0 w 0 N O- O• N INO O • • • • • TEL B RoW L��e _Q�oQ N87°36'19";„•••-• 360.OP-•` 62.00 8,060 SF 62.00 I 1 I ! PROPOSED DRAINAGE &UTILITY 62.00...._ 62.00 pL.UV r 7 r i 1 1 T. HB sl I 8,060 SF 6 -•010 SF 10 EXISTING DRAINAGE & UTILITY EASEMENT PER PLAT OF CENTURY FARM ---- 3RD ADDITION N 87.°36.,19, E ............................... 85019-- 1 8,060 SF 2 {— I I I I L 10, 725 • a EXHIBIT C ._.— • — a� — 3 7,909 SF 5 4, 8,060 SF 7 C I- Nl H R " 5TII ADDI 161.05 587°36'19"W N8736'19"E ROBINSON DRIVE FARM 4TH ADDITION PON X '45 SF PROPERTY DESCRIPTION 2 .8,172 SF 8,172 SF B3SB _LDS6-----BJ 5B '//7/7/7/7// GARAGE ///////////% DESCRIPTION — (Century Farm outlot) OUTLOT A CENTURY FARM NORTH 5TH ADDITION 986.97 PROPOSED DRAINAGE & UTILITY EASEMENT • • ••••••••••-•••••-•-:::: -- -- DESCRIPTION (Morell parcel) THAT PART OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7, TOWNSHIP 31, RANGE 22. BEGINNING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7, TOWNSHIP 31, RANGE 22, THENCE SOUTH ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7, ON AN ASSUMED BEARING OF S00 27'12"E A DISTANCE OF 120 FEET; THENCE N87 36' 19"E EAST A DISTANCE OF 360 FEET; THENCE, PARALLEL WITH SAID WEST LINE OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER TO A POINT OF INTERSECTION WITH THE NORTH LINE OF SAID SOUTHWEST QUARTER OF THE NORTHWEST QUARTER; THENCE WESTERLY ALONG THE NORTH LINE OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER TO THE POINT OF BEGINNING. DESCRIPTION OF PARK VACATION: THAT PART OF THE PARK AREA DEDICATED IN CENTURY FARM NORTH 5TH ADDITION, ANOKA COUNTY, MINNESOTA DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID PARK OF SAID CENTURY FARM NORTH 5TH ADDITION; THENCE EASTERLY ALONG THE NORTH LINE OF SAID PARCEL ON AN ASSUMED BEARING OF NORTH 87° 36' 19" EAST A DISTANCE OF 205.57 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING ALONG THE NORTH LINE OF SAID PARCEL ON A BEARING OF NORTH 87° 36" 19" EAST A DISTANCE OF 180.00 FEET; THENCE SOUTN 02° 23' 41" EAST FOR A DISTANCE OF 131.18 FEET; THENCE SOUTH 87° 36" 19" WEST A DISTANCE OF 180.00 FEET; THENCE NORTH 02° 23' 41" EAST FOR A DISTANCE OF 131.18 FEET TO THE POINT OF BEGINNING. AREA OR PARK VACATION: 23,726 SQ. FT. —OR— 0.545 ACRES 60.00 TYPICAL LOT EASEMENTS PARKLAND VACATION DETAIL PARK VACATION 0.545 ACRE L AL AIL O/ O/ 0 0 N 0 0 z v SEE DETAIL BELOW LEFT', 1- ............._...._.............::::._._......................................................._............._.... QRAINAGE & UTILITY 1=ASEMENT —__ ___ N .'01'14''E 26r70 N8 PA/K • POND 3 • 7 18 2, 4 5 6 . gear EX STING -OW-LI\ --ASEMENT N87'36'19" E\ ...__._...._....... POND ..... ter_ Mr') cN 0 z 91 • IELV HIGH—LINE POLE NO • • • • • • • • • • • • • • NOTES 4 PROPOSED PLAT ZONING EXISTING PLAT ZONING MINIMUM LOT DEPTH MINIMUM LOT WIDTH MINIMUM LOT AREA BUILDING SETBACKS STREET (LOCAL) STREET (COLLECTOR) REAR SIDE (PRINCIPAL) SIDE (ACCESSORY) PUD R & PUD 125 FEET 60 FEET 7,500 S.F. = 25 FEET = 40 FEET = 25 FEET = 10 FEET = 5 FEET DEVELOPMENT DATA BOUNDARY AREA = 11.35 ACRES OUTLOT A, CENTURY FARM NORTH 5TH ADDITION PARKLAND VACATION MORELL PARCEL = 9.81 ACRES = 0.55 ACRES = 0.99 ACRES = 11.35 ACRES TOTAL UPLAND AREA = 8.41 ACRES [74.1%] TOTAL RIGHT—OF—WAY AREA = 2.81 ACRES [24.8%] TOTAL WETLAND AREA = 0.13 ACRES [ 1.1%] Know what's below. CaII before you dig. PRELIMINARY PLAT CENTURY FARM NORTH - 6TH ADDITION DRAWN BY: DESIGN BY: A.G. C.W.P. CHCKD BY: C.W.P. PROJ. NO. 14-1460 ORIGINAL DATE: MARCH 10, 2014 REVISION DESCRIPTION RCWD COMMENTS CITY REVIEW #1 Lu 0 ao 4 CENTURY FARM NORTH - PUD / PRELIMINARY PLAT AMENDMENT - 6TH ADDITION 2 CA PRELIMINARY PLAT PREPARED FOR: CENTURY FARM NORTH DEVELOPMENT, INC. SITE PLANNING & ENGINEERING PLOWS ENGINEERING, INC. 6776 LAKE DRIVE SUITE 110 LINO LAKES, MN 55014 PHONE: (651) 361-8210 FAX: (651) 361-8701 NORTH 0 30 GO 1 INCH = 60 FEET PP CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Jason Wedel, City Engineer MEETING DATE: June 9, 2014 TOPIC: Century Farm North iv. Consider Resolution No. 14-57 Authorizing the Preparation of Plans and Specifications, Robinson Drive Improvements VOTE REQUIRED: 3/5 Vote Required INTRODUCTION Staff is requesting Council authorization to prepare plans and specifications for the Robinson Drive Improvement Project. BACKGROUND The abutting property owners, Century Farm North Development, Inc. and Jeffrey E. Morell, have signed a Petition and Waiver Agreement agreeing to assessments and right-of-way dedication for the Robinson Drive Improvements. Since this project will be assessed it is necessary for the City Council to formally authorize the preparation of plans and specifications. The estimated schedule for this project is as follows: City Council Authorizes Plans and Specifications City Council Approves Plans and Specifications City Council Authorizes Ad for Bids City Open Bids City Council Awards Contract Construction Begins RECOMMENDATION June 9, 2014 July 28, 2014 July 28, 2014 August 18, 2014 August 25, 2014 September 15, 2014 Staff recommends adoption of Resolution 14-57 Authorizing the Preparation of Plans and Specifications for the Robinson Drive Improvements. ATTACHMENTS 1. Resolution No. 14-57 CITY OF LINO LAKES RESOLUTION NO. 14-57 RESOLUTION AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR THE ROBINSON DRIVE IMPROVEMENTS WHEREAS, Century Farm North Development, Inc. and Jeffrey E. More11, have signed a Petition and Waiver Agreement agreeing to assessments for the Robinson Drive Improvements. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes, Minnesota: That WSB and Associates are designated as the engineer for this improvement and directed to prepare plans and specifications for the Robinson Drive Improvements. Adopted by the Council of the City of Lino Lakes this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Michael Grochala MEETING DATE: June 9, 2014 TOPIC: Consider Resolution No. 14-54, Authorizing Professional Services to Prepare Amendment to Wellhead Protection Plan VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council approval to authorize WSB and Associates to prepare the Wellhead Protection Plan Part II Amendment. BACKGROUND In accordance with state law the City is required to amend its Wellhead Protection Plan. The goal of the plan amendment is to prevent human -caused contaminants from entering the water supply wells and to protect all who use the water supply from adverse health effects associated with groundwater contamination. The amendment is broken down into Part I and Part II. Part I was authorized by the City Council in December of 2012 and included the following items: Delineations of the Wellhead Protection Area (WHPA) Delineations of the Drinking Water Supply Management Area (DWSMA) Well and aquifer vulnerability assessments The Part I study has been completed and staff is preparing to initiate the Part II component of the amendment. Part II is required to be completed by March 10, 2015. WSB has submitted a proposal to complete the Part II amendment in the amount of $19,499. Funding for the plan amendment is proposed to come from the City's Trunk Utility Fund. RECOMMENDATION Staff is recommending that the City Council adopt Resolution 14-54 authorizing WSB & Associates, Inc. to provide professional engineering services for the Wellhead Protection Plan Amendment Part II. ATTACHMENTS 1. Proposal from WSB & Associates, Inc. dated May 23, 2014. CITY OF LINO LAKES RESOLUTION NO. 14-54 AUTHORIZING PROFESSIONAL ENGINEERING SERVICES TO PREPARE AMENDMENT TO WELLHEAD PROTECTION PLAN - PART II WHEREAS, The City Council is required by the Minnesota Department of Health to prepare an amendment to the Wellhead Protection Plan; WHEREAS, The City has received a proposal from WSB & Associates, Inc. to prepare Part II of the required amendment to the Wellhead Protection Plan; NOW, THEREFORE BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes, Minnesota, that an amendment to the City's Wellhead Protection Plan — Part II is authorized to be performed by WSB & Associates, Inc at a cost of $19,499. Adopted by the Council of the City of Lino Lakes this 9th day of June, 2014. The motion for the adoption of the foregoing resolution was introduced by Council Member and was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Jeff Reinert, Mayor ATTEST: Julianne Bartell, City Clerk WSB s Assocengineering • planning • environmental construction May 23, 2014 Michael Grochala Community Development Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 Re: Proposal to Provide Professional Engineering Services for the Wellhead Protection Plan Part 2 Amendment City of Lino Lakes, MN Dear Mr. Grochala: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 WSB & Associates, Inc. (WSB) is pleased to present this proposal to the City of Lino Lakes (City) to provide professional engineering services as they relate to the City's Wellhead Protection Plan (WHPP) Part 2 Amendment. The preparation of the City's WHPP is a requirement of Minnesota Rules 4720.5100 to 4720.5590. WSB's overall goal is to help Lino Lakes compose a source water protection plan that is both useful to the City and meets the requirements of MN Rules as interpreted by the Minnesota Department of Health (MDH). Specific objectives include: • Meet the required parameters as outlined in MDH Part 2 scoping letter, specifically to complete an inventory of the pertinent potential contaminant sources within the approved Drinking Water Source Management Area (DWSMA) and develop a management plan to address potential contaminant sources and associated reporting requirements. ■ Develop Source Water Protection Plan that is useful to Lino Lakes, and not merely the completion of a mandated task The goal of the WHPP is to prevent human -caused contaminants from entering the water supply wells and to protect all who use the water supply from adverse health effects associated with groundwater contamination. A meeting was held with the MDH for the development of Part 2 of the WHPP. At that meeting the MDH introduced the contact persons and discussed requirements to complete the WHPP. The City has until March 10, 2015 to complete Part 2 of the WHPP. Project Approach/Scope of Services Part 2 of a WHPP describes how the results of the Part 1 can be applied to best protect a community's water supply. A successful Part 2 WHPP process is developed through integration and comprehensive analysis of a variety of different types of data. There are four data elements that make up a WHPP — Physical Environment, Land Use, Water Quantity, and Water Quality. All of these can be explained in terms of air, earth, and water. In the perspective of a St. Cloud • Minneapolis • St. Paul Equal Opportunity Employer wsbeng.com K:102029-130 AdminlDocslPar! 21L7R PROP -Lino Lakes-IPHPP2 05 23 14.dor May 23, 2014 Page 2 WHPP, air is climate which determines both water use and aquifer recharge. Earth is a combination of rock, sediment, and soil. Each of these affects Lino Lakes' water supply, either by storing and transmitting the water as an aquifer or by inhibiting flow as a confining layer. Part 1 of the WHPP addressed this subject. Earth is important in a WHPP as it determines how much water is available, where it comes from and how vulnerable groundwater is to contamination from the surface. Finally, Water is the reason for this whole process. The WHPP addresses supply sustainability, mid -scale demand trends, potential quality issues, and comprehensive risk mitigation measures. Part 2 addresses water by combining the Air and Earth subjects (above) with land use, taking inventory of potential contamination sites, surface waters, and evaluating available water supplies in terms of quantity and quality. Once the above data elements are collected and interpreted, impacts of changes in land and water use can be assessed. This will allow issues, problems, and opportunities to be identified and included in the WHPP. Among the issues and problems is a Potential Contaminant Source Inventory (PCSI), which is explicitly identified by the MDH. Another item that the MDH calls out as a separate item is identifying an alternate water supply as part of a Water Emergency and Conservation Plan. This is actually both an issue and opportunity that the Part 2 WHPP will address. Other issues and opportunities that may be included in this WHPP are changes in zoning or land use, well rehabilitation, possible cooperation/collaboration with other water producers, and conflicts with surface water management. Since the Part 2 WHPP establishes action items, there must be a way to measure the effectiveness of these items. Each action item will include a description of how the item will be analyzed and the results fed back to keep the goal relevant. Doing this makes the plan dynamic and more valuable in the long run. A report will be prepared to satisfy the MDH reporting requirements for Part 2 of the WHPP. The report and associated GIS files will be delivered in an electronic format on compact disks, per MDH scoping decision. Two CD copies of the draft report and two of the final report will be presented to the City. The Wellhead Protection Rules require that the results of Part 2 of the WHPP to be presented to the public at a public hearing. This proposal includes presenting the results of this work at one public hearing. Work Plan To complete the Part 2 WHPP, we propose to complete the following tasks: Task 1— Data Elements & Assessments During this phase, we will compile the data necessary to complete the WHPP. This includes all of the required elements of the Plan as identified by the MDH in addition to reviewing the WHPP Part 1. During this phase, land use/zoning, and potential contaminant source maps will be completed. Data tables and existing maps will be assembled to complete MDH requirements. The following elements need to be completed: • Physical Environment • Land Use • Water Quantity • Water Quality Task 2 —Impact of Changes to Public Water Supply Wells The purpose of this task is to determine whether new potential sources of contamination may be introduced in the future and to identify future actions for addressing these anticipated sources. Expected changes to the physical environment, land use, or ground water will be described that may impact the aquifers serving the City's municipal wells. K:102029-430NdminlDoulPart 217R PROP -Lino Lakes-WHPP2 05 23 I4.doc May 23, 2014 Page 3 Task 3 —Identify Issues Problems & Opportunities The purpose of this task is to define the nature and magnitude of contaminant source management issues within the DWSMA. This task includes obtaining PCSI data from the State and County and compiling the data and conducting preliminary location verification. In addition, this task includes describing the water and land use issues and problems and opportunities related to the aquifers serving the water supply wells and the DWSMA. Task 4 — Develop Goals, Objectives, Plan & Evaluation This task consists of establishing goals for present and future water and land use to provide a framework for determining plan objectives and related action items. In addition, observations will be made about vulnerability and mitigation within multiple contexts, such as City plans/budget and MDH requirements, to determine the source water protection measures best suited for Lino Lakes. These measures will then be reviewed and presented as an outline of action items which can be prioritized. Evaluation strategies will be devised to determine the effectiveness of the actions taken on each item. Task 5 — Letter Submittals WSB will submit the plan to the LGUs and the MDH. We will also notify the LGUs of plan approval and prepare the public hearing notice. Task 6 — Meetings During the course of this project, informal meetings will be held between WSB, the City, and possibly the MDH to provide progress updates to the City and MDH personnel. The meetings will be held at the City of Lino Lakes offices, with the option of conducting them via telephone. WSB will also attend meetings with MDH and conduct the required public hearing. The draft report will be updated to respond to comments made during the review process and by City and MDH staff. Proposed Fee WSB proposes to complete the above scope of services on an hourly basis in accordance with our 2014 billing rate schedule for an estimated fee of $19,499. Please refer to the attached spreadsheet for an estimate of hours by task. Schedule WSB can begin work immediately and can meet MDH's deadline. Completion of the final plan will require a 60 day review period followed by a public hearing before the plan can be submitted to MDH for their review and approval. MDH may accept a draft copy at the start of the 60 day review period, which accelerates the schedule and may provide draft comments so that the final plan that is submitted is quickly approved. This represents our total understanding of the project and proposed scope of services. If you are in agreement with the scope of services, please have the City block of this letter signed and return a copy to WSB. Our receipt of an executed copy will be WSB's authorization to proceed. Should the City request additional services outside of the above scope of services, we will work with you to establish a revised scope and fee. Please contact me at your convenience 763-287-8520 if you have any questions or concerns relating to this proposal as presented. We appreciate the opportunity to assist you and your staff with completion of the Wellhead Protection Plan Part 2. K:102029—J30U1dmin1DacsiPart 2kL7R PROP -Lino Lakes-WHPP2 05 2314.doc May 23, 2014 Page 4 Sincerely, WSB & Associates, Inc. 17 Jason Wedel, PE City Engineer Enclosure ACCEPTE 1 :`Y: City of Lino Lakes Name Title Date K:102029-43041dmin DocdPart 21L7R PROP -Lino Lakes-Ili/PP? 05 23 14.doc Estimate of Cost WSB City of Lino Lakes, Minnesota Professional Services to Complete ® Wellhead Protection Plan Update Part 2 AscoC unv.r. Int Total Labor Cost $ 724.00 I $ 830.00 0 0 N 44-4-V r 69- EA $ 181.00 $ 784.00 O 0 O M V V> $ 1,088.00 0 0 N r 69 0 0 a) a' 69 0 0 OLri o 69 $ 566.00 0 0 N vi $ 168.00 I 0 0 F- 0 fA 0 0 r- co V3 0 0 tD Q) 69 0 0 N O r 69 $ _ 468.00 I $ 468.00 $ 234.00 0 0 O) co- .- FF3 Estimated Hours To N O p F 2 W,_ N a .'v ,- T- u7 CO CO CO N r r r ' V N N Admin CO r - r CO 81.00 O O M V N 69 GIS Specialist Bryan Pittman 1 d r NN. $ 83.00 0 O r Geologist BJ Bonin c} r 0 N V 0 co N N N n $ 98.00 $ 6,958.00 d C to a Breanne Rothstein CON N N V V O O CO 0) t» $ 4,116.00 Project Manager Leslee Storlie V N CO V CO N N N r r r V N N r CO $ 87.00 $ 5,742.00 Principal Jason Wedel N N N r N- $ 147.00 $ 1,029.00 Description Data Collection _ Complete Maps and Required Data Tables Response to Impact of Changes Obtain Potential Contaminant Source Data from State/County Compile Data Conduct Preliminary Location Verification Identify Other Issues Problems & Opportunities Prepare Report on Findings and Recommendations Report Consider Comments by LGUs Consider Comments by MDH Submit Plan to LGUs Public Hearing Notice Submit Plan to MDH Notice to LGUs of Plan Approval Scoping 2 Meeting Internal Coordination Draft Review with MDH Planner Draft Review with City Public Hearing and Review CO CO 0 2 F Hourly Billing Rate Total WSB Direct Labor Costs Y N1 F Z r N r r fV r N M M M d' C7.:1'V' r N M V V e( r 0 N N M 0 ill r t0 N tD M tD ..7N cc; 0) :\WaterWastewater\Wellhead Protection General\Budgets - Working \Part 2\W HPP Part 2 Budget Worksheet_LinoLakes