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07-03-12 CCMP
CITY IAKE F, T Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner While Preserving the City's Open Space Character T PT City of Lake Elmo 3800 Laverne Avenue o th City Council eeting Tuesday, July 3, 2012 7:00 p.m. A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. ROLL CALL D. APPROVAL OF AGENDA E. ORDER OF BUSINESS/GROUND RULES F. ACCEPT MINUTES 1. Accept June 19, 2012 City Council minutes G. PUBLIC COMMENTS/INQUIRIES H. PRESENTATIONS CONSENT AGENDA Note: Items listed under the Consent Agenda will be enacted by one motion with no separate discussion. If discussion on an item is desired, the item will be removed from the Consent Agenda for separate consideration. 2. Approve Payment of Disbursements and Payroll 3. Approve Resolution 2012-32 Designating Certified Building Official and Approval of JPA with the City of Hugo 4. Approve Building Official Position, Posting and Recruitment 5. Proclaim ,,ugust 9 through 12, 2012 Huff'n Puff Days 6. Approve Temporary Liquor License for Lake Elmo Jaycees REGULAR AGENDA 7. 2011 Final Audit Report Review 8. Adopt Ordinance 2012-60 Mayor and Council Salaries Effective January 1, 2013 9. Country Sun Farms — Agricultural Building Construction 10. Quarterly Work Schedule K. SUMMARY REPORTS AND ANNOUNCEMENTS • Mayor and Council • Administrator • City Attorney • City Engineer • Planning Director • Finance Director Adjourn LAKE ELMO CFI I COUNCIL MINUTES DRAFT JUNE 19, 2012 CITY OF LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Mayor Johnston called the meeting to order at 7:00 p.m. PRESENT: Mayor Johnston, Council Members Emmons, Smith, Pearson, and Park. Also Present: City Administrator Zuleger, City Attorney Snyder, City Engineer Griffin, Planning Director Klatt, City Clerk Thone, and Finance Director Bendel. APPROVAL OF AGENDA MOTION: Council Member Pearson moved to approve the June 19, 2012 City Council Agenda as presented. Council Member Park seconded the motion. Motion passed 5-0. ACCEPTED MINUTES 1. The June 5, 2012 City Council minutes were approved as amended by consensus of the City Council. PUBLIC COMMENTS/INQUIRIES PRESENTATIONS Eric Eitzman, Stillwater High School Senior presented his Eagle Scout Project to the Council. He met with the Public Works Department and City Engineer, regarding the building of a bridge from the Lake Elementary School field to the City Hall parking lot. MOTION: Council Member Emmons moved to accept the project. Council Member Smith seconded the motion. Motion passed 5-0. CONSENT AGENDA 2. May 2012 Financial Reporting; Year to date Building Report 3. Approve Payment of Disbursements and Payroll in the Amount of $224,228.66 4. Approve Resolution 2012-30 Appointing 2012 Election Judges 5. Approve Resolution 2012-33 Removing Assessments from 2012 Washington County File MOTION: Council Member Pearson moved to approve the Consent Agenda as presented. Council Member Smith seconded the motion. Motion passed 5-0. REGULAR AGENDA ITEM 6: RESOLUTION 2012-31 STREET NAME CHANGE -JULEP AVENUE NORTH (ENTRANCE INTO TAPESTRY AT CHARLOTTE'S GROVE) Page 1 of 7 LAKE ELMO CITY COUNCIL MINUTES DRAFT ��J������� v~^.~�.'~~~�~~ Planning Director y2att presented a diagram of the proposed street name change request and provided abrief history and justification for the proposed change. Bestated only three properties would be affected by the change from julep Avenue North to 456, Street North. lbo Blackford, 9765 4511,Street North approached the council and stated besupported the street oamecbao�n� Thctbcenproper�/ovvuersw�Kcovnrtbncostofnnoviu�their onai|bnxexand bevviUinstall a 24-inch wide cement flat concrete surface and curb to allow snowplowing. MOTION: Council Member Smith moved toapprove Resolution 2012-0J2Changing the Name ofo Portion of Julep Avenue North Between the 45m Street North Right -of -Way and Tapestry Road. Council Member Park seconded the motion. Motion passed 5-0. ITEM7: MINOR SUBDIVISION -11Z48SOruSTREET NORTH Planning Director Klatt presented the minor subdivision request for 11240 501h Street North, which does meet City Code requirements allowing lot splits less than lDacres when utilized to benefit the City. He explained this request takes advantage of City Code amendment. The minor subdivision allows the City to purchase 1.4 acres (Parcel A) for Well Site No. 4, and the property owner the ability to sell/use the remaining two lots. The Planning Commission recommended approval with three conditions, which included park land dedication, easements to be shown on the survey, and the Flood Plain issues. Council Member Smith sought clarification regarding the minimum lot size. Planning Director Natt explained that the remaining two lots are not square due to the elevation, wetland classification, and Watershed District flood plain delineation. City Attorney Snyder interjected his thanks to the Staff and the applicant for the handling of the entire process. Council Member Pearson inquired about the additional Planning Commission recommendations. Planning Director K|att responded that the recommendations regarding the well house design are to reflect the rural character and will be addressed during the design process. Also, the Planning Commission desires the trail plan be incorporated when the City bworking onthat portion. MOTION: Council Member Pearson nx7v«d to approve u Minor Subdivision to split on existing I9.32 acre parcel otII240501h Street North into three separate lots, one ofwhich would beuxodfbrpublic purposes. Council MemberSmith seconded the motion. Motion passed 5-0. ITEM 8: RESOLUTION 3012-29 APPROVE ISSUANCE AND SALE OF G. 0.IMPROVEMENT BONDS; SERIES 2012 A CROSSOVER REFUNDING BONDS Finance Cirocbrc Bendel presented the proposal to consider debt restructuring the current $4,090'000 bond due to the interest rates dropping by 3%. The estimated net savings is approximately $344,343 which the City would realize in 2015. MOTION: Council Member Smith moved to approve Resolution 2012-29 Authorizing Issuance and Sale ofj4,V90,0DQ General Obligation Improvement Bonds, SeriesZ0I2A. Council Member Park seconded Page 2 of 7 LAKE ELMO C11 f'COUNCIL MINUTES DRAFT �V�D��o� ���� '..^.~~ �./ ~~�� ITEM 9: RESOLUTION 2012-20 APPROVE ISSUANCE AND SALE OF G. Ky. IMPROVEMENT BONDS; SERIES 2012 B DEMONTREVILLE HIGHLANDS AREA STREET IMPROVEMENT PROJECT Finance Director Bendel presented the proposal for approval for the issuance of new/ bond to cover the DcnnootrevKip Highlands Area Street Improvement Project. Due to the stringent competitive bidding oo the 301I Street Improvement projects, the City now has excess funding of $185,000 available to be used to minimize the funding level necessary for the current project Council Member Smith inquired about whether partial credit would go to the City and partialcredit vvnu|d be refunded to residents who have already paid and adjustments made to homeowners property taxes. Finance Director Bendel responded in the affirmative, Council K4ecubur Pearson applauded both staff and Northland Securities for their work on these bonds. MOTION: Council Member Emmons moved tnapprove Resolution J01Z-2BAuthorizing Issuance and Sale of $865000 Genera/ Obligation Improvement Bonds, Senes3012B. Council Member Pearson seconded the motion, Motion passed 5-0. ITEM 10: FINANCIAL PLANNING SERVICES AGREEMENT WITH NORTHLAND SECURITIES FOR THE PURPOSE OF ANALYZING WATER, SANITARY SEWER, AND STORM WATER SYSTEMS yN PREPARATION OF WATER MAIN AND SEWER MAIN EXTENSION PROJECTS. City Administrator Zu}egerexplained the need and reasoning for the original approach to put together a financial plan to recover costs associated with water and other utilities, Council Member Park inquired whether this would include the cnogp|ctc water loop. City Administrator Zuleger clarified that all recommendations would be examined and would include all grants and sot1|enoeots. Council Member 3roitb inquired about recovering the design costs of the AUAR, assessing the new developers, and the cost of an Environmental Impact Study (E\5) that would heneeded for the | 94Cnrridor. City Engineer Cdfho reiterated the proposal vvooJd address all aspects of the project. Mayor Johnston stated our expectations were that the costs would be recovered as development occurred. City Attorney Snyder added that the costs would need to be recovered in an indirect roaooec Council Member Emmons stated whether the goal was to understand how many costs are out there or buvv we would recover them, why we would not anticipate the infrastructure costs and include those inour developer's fees. Council Member Pearson inquired whether the ADAR costs may be passed on as indirect cost City Administrator Cu)r�errespondedtbatb�aodCityEn 'ocerGdfOoniUvvorkc]oseh/nitbNortblaud Securities oothis matter. Council Member Park thanked staff for their work nothe project Page 3 of 7 LAKE EXMOK~KTY COUNCIL MINUTES DRAFT DUNE 19v2012 MOTION: Council Member Smith moved to approve the Financial Planning Agreement between the City of Lake Elmo ondNorth/ond Snrurdjcz for an amount not tn axceodS5,ZR0 for the Purpose of Developing oFinancial Strutegy/brthe Construction nfWater Main and Sewer Force Main /n thpL3tv'o Growth Areas. The Funds are tobcDisbursed Equo//u6'oxnthe LJty'sUndcs' noted Fund Balance and the [Jtyj N/otar Dt//ityFund- With Funds to be Recovered Through Mechanism Determined 6vthe Study. Council Member Park seconded the motion. Motion passed 5'0. ITEM 11: ECONOMIC DEVELOPMENT AUTHORITY (ED&) STRUCTURE DISCUSSION City Administrator Zuleger explained the Minnesota Department of Employment and Economic Development document "Pnvvccs nfEDA's" vvbicb outlines an Economic Development Authority's [EDA) responsibilities and the purpose of creating an EDA. He explained the EDA in his opinion would be the most encompassing tool for the City to support and encourage development in both the Old Village and the }'94Corridor. Renoted that quality firms seeking tolocate ioacommunity prefer working with an EBA regarding the details of proposed project since the process can be more streamlined, with the City Council making ultimate decisions based oothe groundwork oFthe ED/\. He then explained huvv the ED^4 in his fbcnocr city had done the groundwork for the city to acquire 240 acres for an industrial park that resulted in 1,900 new jobs in the city. Council Member Park inquired whether Paul Donna would have anything to offer with regard to E08's. Mr. Donna, Northland Serurities, gave a brief description of an EDA and explained that an EDA has certain abilities that the Council does not have in the way of financing and contracting. He stated be felt there numerous benefits can come to the city through an ED8' but the EDA structure needed tobcassembled thoughtfully. 8ecited some very positive results cities have made possible tbrou�btheir ED/\'s. The Council made inquiries with regard to the roles and the power of an EDA in relation to those of the City CooudL Paul Donna stated that an EDA could be structured to stand alone with respect to many development functions, but that many cities choose to limit an 8DA'spoovers regarding such things as bonding and eminent domain. City Administrator Zuleger explained that the concept of'quiet enjoyment', where a city council can become liable for the actions of an independent EDA even if no "full faith and credit" of the city is pledged tnEDAfinancial programs, City Attorney Snyder stated many cities otD| have their EDA's, and for the most part answer to the Council but are the basic development acno of the city. When large scale economic development occurs, most developers expect to be dealing with an 8DA, as it is avebjc\e for the city to be more tightly engaged with commercial activdirs. He stressed that the governing documents of the GDA are approved hythe City [ounciL Council Member Park reiterated Council's discretion no the decision made on how the EDA is structured and its responsibilities. Council Member Park inquired how the EDA may specifically Page 4 of 7 LAKE ELMO ClIr COUNCIL MINUTES DRAFT '-~-.-~��~���,�~���� � Paul Donna explained that io many cities the EDAb atool to negotiate contracts, and develop financing options for private developments. He provided an example of one city in the Mankato area where the 8DA constructed an "incubator buildiog" to attract small and start-up businesses that could �rnvvtothe benefit ofthe city. Mayor Johnston inquired whether how Lake Elcuo's past interaction with Greater M3P could have been better served if the City had an EDA in place. City Administrator Zu|eger responded an ED/\ would be useful when partnering with current businesses and landowners an the 1'94 Corridor in creating aBusiness Park, and explained vvccould use binstructuring development a�reocoents. City Attorney Snyder stated o case recently where property was proposed for sale to the City and the City was interested in developing the property. The purchase could be handled by an EDAaud the EDA can structure the transaction and resulting development how as the City wishes. City Administrator Zuleger explained staff was looking for feedback from council on EDA structure, membership, limitation of powers, etc., and reminded Council it was their number one objective from the Council/Staff Strategic Planning retreat. Council Member Pearson voiced his general support for aoEDA,and asked the difference between an Economic Development Authority (EDA) and Economic Development Cornooit1cc (SD[), Administrator 3uiegmr stated the EDf\has authority and powers that the EDC vvoo\d not. He stated the EDA can operate under parameters of negotiation set by Council, and the EDA could save much time for the City Council in dcncs of growth, and be considers an EDA to be a safety net for the Council Member Park suggested the City Council be involved in interviewing members of the ED& and have some involvement on the EDA. Mayor Johnston suggested Council provide staff direction in the next week so staff could begin drafting ostarting point oocreating mmE0A. Administrator 3ub�ccadvised the Cnnod|that the staff had ateompb�efor the ordinance tocreate an EUA iuwhich the Council could insert its desired options for structure, board composition, and powers ofthe ED/\aswell axthose reserved for the City Council. [ouod\ Member 3noitb supported the direction of creating an EDA and stated the City should move forward on this in order to move the City in a forward direction. Council K4cunber Emmons stated be would support that. Mayor Johnston stated we could revisit the subject after feedback is received bystaff and reconvene atthe workshop in July, SUMMARY REPORTS AND ANNOUNCEMENTS Council Member Park had nothing to report. Page 5 of 7 LAKE ELMO CITY COUNCIL MINUTES DRAFT K����� ���� ,~^~~~�~/~~~�~ Council Member Pearson attended a library meeting and applauded the work of the Library Board. Be attended a meeting with the mayor and administrator at the county regarding economics, and attended a truck meeting with the Fire Department to determine the need. Council Member Emmons reported Washington County Water Consortium nneeUo�;roaioteoanccof rain gardens and stated the county would like to see more city representation on that subgroup and welcomed the CouncU'sfeedback. Council Member Smith staff onFall Festival and discussed changing theuoo,ctoEbnoDays ozaNug it more of an identity and possibly making it a two-day event; shared her sadness at one of Lake Elmo resident's drowning and expressed sympathy for the family of the young man. Mayor Johnston reported be met with a perspective candidate running for council and discussed running a campaiQo; met with city staff and Council Member Smith regarding the history of the Memo ofUnderstanding (MOU)and basis ofComprehensive Plan; attended the groundbreaking for the East Metro Public Safety Training Facility; participated in the Friends of Lake Elmo Library meeting, attended the 1-94 Business Corridor meeting with Council Member Pearson, attended the Metro Cities Board meeting where they approved the annual budget; worked on the new library building and commended all the hard work being done and asked for volunteers to help; met with staff, DNR and local lake owners on the water ordinance and stated it seemed to be resolved. City Administrator Zulegcr thanked Steve DoLapp and expressed he is a 'man on a mission' reearding the library; thanked and commended everyone who made the City Hall upgrade a possibility; noting a Quality Star will be recommended to the Public Works Department; received DND final approval to keep the high water mark at929.7 feet; working with Washington County Humane 0O5ccr regarding the dog ordinance and process; reported that 32 landowners attended the 1'94 Corridor meeting out of77 personal invitations delivered, and discussed road and sewer water development; will be attending the LMC Annual Conference in Duluth; Thursday's BOA nueetin�noayhcpostponed ootUnext vxecbdue toattendance. City Attorney Snyder updated the City Council on the fioo6 purchase agreement of the thanked City Engineer Griffin and Planning 82attassistance ofthe Purchase Agreement ofWell Site No. 4; the detachment case brief will be filed at end of week; vvorkre�ardio�ioteroal issues. City Engineer Griffin reported be attended a pre-screening board meeting with the municipal State Aid regarding rules for fund distribution; St. Croix Sanctuary development ismoving forward after Brown's Watershed District approval; met with City Administrator [lP scheduling process has started; met with Washington County to better prepare, coordinate and partner with regard to the infrastructure and County corridors, Director of Planning Klatt reported the Village Work Group meeting Wednesday morning; updating the Comprehensive Plan for the Planning Commission's review for ultimate submittal to Council beforcME7C; attended meeting regarding senior and affordable housing for our community. Finance Director Bendel reported 2'a quarter water bills were cooDed/ developing new reports, Page 6 of 7 ADJOURN: The meeting adjourned at 8:38 p.m. Sandie Thone, City Clerk LAKE ELMO Cf.. t COUNCIL MINUTES DRAFT JUNE 19, 2012 Page 7 of 7 LAKE ELMO CITY COUNCIL Dean A. Johnston, Mayor E. CITY OF J\KE ELMO MAYOR AND COUNCIL COMMUNICATION DATE: 07/3/2012 CONSENT ITEM #: MOTION Consent Agenda AGENDA ITEM: Approve Disbursements in the Amount of $130,984.61 SUBMITTED BY: Cathy Bendel. Finance Director THROUGH: Dean Zuleger, City Administrator REVIEWED BY: Joan Ziertman, Finance Consultant SUMMARY AND ACTION REOUESTED: As part of its Consent Agenda, the City Council is asked to approve disbursements in the amount of $130,984.61, No specific motion is needed. as this is recommended to be part of the overall approval of the Consent Agenda BACKGROUND INFORMATION: The City of Lake Elmo has fiduciary authority and responsibility to conduct normal business operation. Below is a summary of current claims to be disbursed and paid in accordance with State law and City policies and procedures, Claim # Amount Description ACH $ 8,406.98 Payroll Taxes to IRS & MN Revenue 6128/2012 ACH $ 4.793,83 Payroll Retirement to PERA 6/28/12 DD4028 — DD4044 $ 21,715.96 Payroll Dated 6/28/12 (Direct Deposit) 38560-38564 $ 2,707.38 Payroll Dated 6/28/2012 (Payroll Paper Checks) 38559 & 38565 $ 3,188.00 Accounts Payable Dated 7/3/12 (Manual Checks) 38566-38608 $ 88.972.46 Accounts Payable Dated 7/3/12 1484-1503 Void Checks — Printer Error 1504-1523 5 1,200.00 Accounts Payable Dated 7/3/12 (Library Checks) TOTAL 5 130,984.61 STAFF REPORT: City staff has complied and reviewed the attached set of claims. All appears to be in order and consistent with City budgetary and fiscal policies and Council direction. RECOMMENDATION: It is recommended that the City Council approve as part of the Consent Agenda proposed disbursements in the amount of $130,984.61. Alternatively. the City Council does have the authority to remove this item from the Consent Agenda or a particular claim from this item and further discuss and deliberate prior to taking action. If done so, the appropriate action of the Council following such discussion would be: "Move to approve the July 3, 2012, Disbursements as Presented [and modified] herein." ATTACHMENTS: . Accounts Payable Dated 7/3/2012 SUGGESTED 0 ER OF BUSINESS (if removed from the Consent As.enda) Questions from Council to Staff Mayor Facilitates Call for Motion .......... ............. ...... ..... .......... ............... Mayor & City Council Discussion ....... ....... ............... Mayor & City Council Action on Motion.............. ..... Mayor Facilitates Accounts Payable To Be Paid Proof List User: roan z Pritileck 06/28/2012 - 3:03 Pl\-1 Balch: 015-06-2012 IRVOice 11 III Date ARAN1 Aramark, 629-7518051 06/28/2012 101-430-3100-44170 Uniforms 6)9-7518(151 'Iota!: 629-7519879 06/28/2012 101-410-1940-44010 Repairs"Maint Contractual Bldg 629-7519879 'Iota!! 629-7522892 06/28/2012 101-430-3100-44170 Uniforms 629-7572892 Total: 629-7524703 06/25/2012 101-410-1940-44010 lepairs/fVlaini Contractual F31dg 629-7524703 Total: ARAM Total: F3ELI...1(113 Bell Joe & Missy ('k Req 06/11/2012 803-000-0000-22900 Deposits Payable (.'k Reg Totak BET 1..10E B ERTE LSO Bei telson's Multiple 06/281201 2 101.4 10-19,10-4401 0 Repairs-/Maint Contraclual Bldg Multiple 06/28i20 I 2 1-4-410-1q40-44010 Repairs/Main( Contractual Bldg Multiple Total; OF-289006-1 061'05/2012 101-4 0-1940-44010 Repairs/Mant( Contractual Bldg (LT-289006-1 Total: WO-780996-1 06/19/2012 1111 -410-1940-44010 Repairsit\laint Conti actual Bldg WO-780996-1 Total: Amount Pint Date Description Reference 23.78 0,00 07/03/2012 Uniforms 31.62 0,00 07/03/2012 Monthly Rug service - Annex 23.78 0,00 07/03/2012 Uniforms 38.44 0,00 07.103/2012 Linen City Hall 23.78 31.62 23.78 18 44 117.62 5,000.00 0,00 07/03/2012 Refund Escrow 10138 Tapestry 118 181 5,1100.00 5,1100.00 50.98 0.00 07/03/2012 City Hall Supplies 26.72 0,00 07/0.3/21)12 City Hall Supplies 232,60 0,00 07/03/2012 City Hall Supplies 42.73 0.00 07/03/2012 City Hall Supplies 77.70 232.60 42.73 Task 'Type PO # Close POLine No No No No N o No No No No 0000 0000 0000 0000 0000 0000 0()00 0000 0000 Al' - To lie Paid Proof List r06/28.'1 2 - 3:03 Page I Invoice 11 Inc Pate Amon'II Quantity Pint Dale Description Reference Task Type PO if Close POLine // BER-rELso 353.03 136 V ERAL, Bever Al 06121/2012 06/210012 360.71 0,00 07/03/2012 AIC Unit for Sheriffs Office in Annex No 0000 101-410-1320-42030 Printed Forms 06/21/2012 Tolal: 369.71 REVERAL, Toml: 369.71 RIFFS Rift's Inc, Multiple 05/30/2012 667.30 0,00 07/(13/2012 Portable Restrooms No 0000 101-450-5200-44120 Rentals Buildings Total: 667.30 RIFFS Total: 667,30 IntELOW Bitelow Excavating 6663 02/27/2012 101-430-3125-43150 Contract Services 6663 Total: 1341E10 \\'"fottil: CATCO 17' leetpride 1-62545 (16/01/2012 101-420-2220-44040 RepoirsiMaint Ftipt 1-62545 Total: ovrco Total: CTVOAKDA City of Oakdale I 00110460-111 (15/31/2012 601-494-9400-43820 'Water Utililv 10000460-01 Total: CTVOAKIDA Total: CU NI MINOS Cummings Maly Jo 06127/2012 0607/2012 206-450-53(W-43150 Contract Services 1)6/27/2(112 To)al: IMIMINIIS Total; 4,432,50 0.00 (17/(13/2(112 ronlracl Snow Plowing 4,432.50 4,412 50 51,51 0,00 07/(13/2012 Replacement Truck Light - Reissue 51.51 51.51 8,808.89 (IMO 07/03/20 I 2 \Vater Service 194 8_808.89 8,808.89 No (11)011 No 00111) No 000' 900,00 0,00 07103/2012 Lihrary Consultant No 0000 tk)(1.011 900,00 AP To Be Paid Proof -List 016/28112 - 3:03 PNI 1 Page 2 Invoice 11 Inv Oak /1 mono( l)tunnity Pint Dale oescriplion Reference DELTA Delta Dental 01 1\ limiesota 48760 I I 06/15.'2012 101-000-00(111-2 I 706 1\1 edical Insurance 4876611 Total: DFL,TA Total: DrciNpus Div Industries, Inc. )7007-740-12 05/2Q/2012 601-4Q4-94011-42160 Chemicals 827007-74(1-1 2 Total: 1)PCINIM IS fotc,-&, RFC IS ER Election Systems & Software 817754 06115121112 101-410-14 I 0-420011 Office Supplies 817754 Iola!: EI_ECTSER Total: FNOWERLO Engwer Lon & Scot 110/060012 0106.00 2 101-430-3100-44300 Nfiscefteous 06/06/2012 Total: FNCi \V ER LO Total: 1,117.05 0110 07/03/2012 June 2012 Dental Coverage 1,1 1 7,05 1,117 05 657.19 0.00 07/03/2012 Floride 65719 657.1Q Task Type POI (_Aose F011,inc No 0000 No (1000 124.15 0,00 07/03/2012 Elections Cases 2012 No 0000 124.15 124,15 176,19 0.00 07/03/2012 Repair Damage for Fallen City 'Free No 0000 176.19 176.IQ EN V FNT1S FN VENDS 738507 06/0112012 577.61 0,00 07703/2012 TeleplionelData Service CH June 2012 101-410-1940-43210 Telephone 738507 116,4)1/2012 444.13 0,011 07/03/2012 Telephone/Data Service 11 \V June 2012 101-430-3100-43210 Telephone 738507 Total: 1.021.74 EN VENDS Total: 1,021,74 FA NTASTI Fantastic Floors 20481 06/1912012 8,337,33 703-430-3120-45300 Improvements Other 1 han Bldgs 2048 I 'Mak 8.337,33 FAN IAST1 Total: 8,337.33 0.00 0710312012 Balance [Inc on Tile & Carpeting No 0000 No 0000 No 0000 ')'r I3c paid (,104 Hsi (0612811 2. - 3:1)3 11\1 ) Page 3 Invoice 4 Iui Hale Amount. Qiianaly Date Reference Task '1 ype P() tt Close l'01,inet (;rea)er (16119/2(112 06/19/2012 101 -411/-1320-44300 Miscellaneous 06/10/2(112 Total: CiltFATFR tvl Total: 1OLM/0(C Holiday Credit Office 06/15/2012 06/15/2012 101-420-2220-4212.0 Fuel, Oil and Fluids 06;15/2(112 TotoL HOLIDAVC Total: INTER FILM Weren't' 370631 06/13/21112 703-430-312(1-4530(1 Improvements Other pan Bldgs 370631 Total: INTEIFIJIVI Total: JOHN NICK Johnson Nick 06/15/2012 06/15/2012 101-4 10 1910-44300 Miscellaneous 06/15/2012 Total: JOHNN1CK Total: 5,1100.00 0.00 07/03/2012 Annual Investment 5,000.00 5,000.00 407.21 0.00 07/03/2012 Fuel 407.21 407.21 873.64 0.00 07/03/2012 Furniture and White Board - City Hall 873.64 873.64 27.00 0.00 07/0312012 3 hooks of stamps 27.00 27.00 LINNET Limier Elect' is Company. Inc. 22326 06/117/20 I 2 361.50 0.00 07/03/2012 Ball Field Lights Wiring Repair 101-450-5200-44030 RepairsiMaint Imp Not Bldgs 22326 Total: 361.50 LI NN OR Total; 361.51/ MEMI'l IISN Memphis Net & Twine Co Inc. 66769 05/3 H2012 69.86 0.00 07/03/2012 Soccer Nets 101-450-5200-44030 Repnirs/Maint Imp Not Bldgs 66769 Toal: 69.86 MEMPHISN ion& 69.86 MENARDS() Menards - ()akdale 5070 06/1 21 20 I 2 10.66 703-430-3120-45300 Improvements Other Than l31(Igs 5070 Total: I 0.66 - 13e Paid Proof Lisl (116/28/12 - 3:1)3 P 0,00 07/03/2012 File Cabinet Sliders - City Hall No 0000 No 0000 No 0000 No 0000 No 0000 No 0000 No 0000 I' age 4 I ti voice It Inv Pale Amount l)nanlity Pint hale i)escription Reference 5356 06113/201 7 703_130..11 2o-45300 Improvements ((her Than Bldg 5356 I ()MI: 5444 06/1 on' ? 101-4111 1390-4430(1 Nliseellaticons 54,14 'Iola!: son8 06/15/2012 /03-430.3 NI 4530(I Improvetileills (JWier Than Bldgs 5008 ilal: 7538 06/19201 2 7(13-430-3 )2.0-453(10 Improvements ()they han Rldgs 7538 06119001 ) I (11 -450-5200-440311 lepairs./tvlaint Imp Not lildgs 7538 Total: FNAIU/S0 lotal: 17NAIMST lenards - Stillwater 84824 06/13/2012 703-430-3 1 20-45 300 Improvemenis Other Than lildgs 84824 Total: I\ 1EN A IDST Total: 126,08 1400 07113/2012 Blinds for City Hall 126.0S 66,64 66.64 1(490 19.00 97,30 -39,9S 67,28 29)1.56 0.00 0'7/03/2012 Floor Diffuser 1,400 (17/(13/9(112 Office Construction - City Hall 0.00 07/03/2012 City Hall Counter Caps, Shelf (400 07/0312012 Flag Lights VFW 170,98 04)0 07,103/2012 Blinds for Cily Hall 179,98 I 70.0° 1\1 FR A McCombs Frank Rcios Assoc Inc. 7(4)69 0(0112019 1,((77.84 OM() (17/03/2(112 Planning Services - May 2012 101 -410-191(14315(1 Contract Services 71)669 Total: 1,077.84 NIFIZ A ToIRI; 1,077,84 Ncr[OS 566200-NTT13IZS MINNES(JI'A 5662512 n6/27,22012 I 01-00(1-011(10-2 I 708 Usher Benefits 56625 I?. Total: N(1'ERS fotal: NEVI- Fl. Nextel Communications 761050227-108 03/1812(112 101-110-1 r/40-132 HI Telephone 701950227-108 03/18/2012 0 /0-2270-43210 Telephone 76195(027-108 03.,1 Ri)(11 2 o -420-2400-4321n Teklitiiine 1 12,00 0.00 07/03/2012 July 2012 Deductions I 12,00 112 00 85.15 0,00 07/0312012 Cell Phone Service - Administration 350,60 0.00 07/03/2012 Cell Phone Service - Fire Dept 1 7,77 0.00 07/03/2012 Cell Phone Service - Building Dept Task Type PO It ( lose POLine tt Nn 0000 No 00()() No WOO No MOO No (1900 No (1000 No 0000 No 11011' No No No 0000 0000 AP - To Be Paid Pt (mil List (06,2811 2 - 3:03 PNI Page 5 III (lice # I o Date Autumn( (./tiarility roil Date Descriplion Reference Task 1) pe # Close POLine 761950227-1(18 03/1812912 356.27 0.00 07/03/2012 Cell Phone Service - Public Winks - No 0000 1 01-43(1-3 1 00-4321 11 Telephone Dept 76195(12 )7-1(18 03/18/2012 102.38 ID))) 07/03/2012 Cell Phone Service - Parks Dept - No 0000 1 0 1 -450-5200-432 1 0 Telephone 761 P50227-108 Total: 912.17 NEWF. 4 Total: 912,17 PUMPS Ponip's Tire Service, Inc, \V( ))10)10,1420 05/25/2012 101-450-5200-42219 Equipment Parts kV02 11)004420 'Total: PriNIPS Total: P1 [SSA Anastasia Press 06115/2(11 2 96/05/2012 1 01 -4 10-1450-43620 ("able Operations 06;05/2(112 [Mal 06112/12 06.1 1 )1)0 1 2 1111-1 1 0-1450-43620 Cable Operations (16/12/12 Total: 9611 I 2 06/1 9/2(112 1111-.110-1450-413620 (7ahle Opera( ions 06,71012 Total: !TESSA Total: rROSTAFF rizosTArr 102-860446 06/07/ 20 1 2 1 01 -4 10-13 41-43150 Contract Services 102-860446 Total: 102-861680 06/14/2012 101-4 10-132(1-43 150 Contract Services 102-861680 Lott& PROSTATE Total: RE.L.IAN(f Reliance Standard Life 07.1/1i21112 07101 /2012 1 0 1 -000-0000-21 706 I\ ledical Insurance 97/01/2912 (17/(11/2012 1 91 -000-0(100-2 1 708 Other Deneliis 07101/2012 07MI/2012 101-0110-0000-2 17(18 Other Benelits 323.49 0.00 (17/03/2012 Mower Trailer Tires and Mower Tire 323.49 323.49 55.00 0.00 (17/(13/2(112 City Council Meeting 6/5/12 55.00 41.25 0.00 07103/2012 Workshop 6/12/12 41.25 55,00 0.00 07/0312012 City Council Nleeting 6/19/12 55.00 151.25 496.00 0.00 07/03/2012 'Imp Help W/E 6/3/12 496.00 620.00 (IM)) 07/03/2012 Temp Help 6/10/12 620.00 16.011 128.19 0,00 07/03/2012 Life Insurance 18.31 (DV 07/030012 AL) & D Insurance I 76.31 0.00 07/03/2012 LTD Insurance No 000(1 No 0000 No 0000 No 0000 No 0000 No 000 No 9000 No 0000 No 9000 Page 6 Pc paid pu,„/ Lis( (06/2 - 3:03 P.M1 lin nice # Jnv Pate 07/01/2012 (1711/2012 i1i..000..00M-21708 Other 13 enelii 07/01,12012 lotal: 1Z lANC Totak P.( iFIZS ers kiting Services, Corp 18725 06/08/7017 101_410.,1320-420.10 Pi *tilted Forms 18725 Iota!: ItOr.iNRS 1 S&T S&1' Unice oducts.. 1 tic, 0I01/6890 06108/201 101-410-.1370-42000 Office Supplies 01PF6890 Total: 01143001 (16/1512(112 101-410- 1320-42000 Office Supplies P(..i)101 Total: S&T Total: SCOTTPALI Scott Paul & Andrea Ck Req 0608/2012 803-000-01100-22900 Deposits l'a);1111e Ck R cc! Total: SCOT IT' A 14 Iola': SNIIII1ANN Anne Smith 06./22.'2012 06/2 )/7012 101-410-1110-44370 Conferences & Training 0612212(112 'Foal', SI\ 1 ITI 1ANN STILL.A1ED Stillwater Medical (Jump 2656 061 2/2(112 101_420-.2220-43050 Physicals 2656 1 ST1 LIMED Total: Amount ()nantily Pint Vale Ifescriplion Reference Fisk 253.31 0.00 07103/2012 STD Insurance 576.12 576.12 514.07 0.00 07/03/2012 New Lngn - Stationary & Envelopes 514,07 514.07 46.81 0.00 07/03/2012 Office Supplies 46,81 43.44 0,00 07103/2012 Office Supplies 43,41 00,25 5,1100.00 0.00 07/03/2012 Rehm(' Escrow 10030 Tnpeslry #8237 5,00(1,00 5,000,00 298,19 0,00 (17/03/2012 Expenses Related to Seminar 298.19 298.19 680.27 0.00 07/031201 2 Physicals & Vaccinalions 680.27 680.27 rape r( t-1 k ,ose P011,ine il No 0000 No 0000 No 00C No 0000 No 000(1 No 0000 No 0000 Al' - To lie Pond I'in( 1 iql (06,12812 3:0.3 ) Page 7 Invoice # Jiiv 1)Me Amount ()win rml 1)escrinlion Reference Task Tyne PO # Close 1101,ineif sTioSEI'l I Titan lachinery 9C06121 0640/201 2 I II I -13n-3125-44(1M lepairsiklaint Eqpt 9(116421 -iota': 9(116557 061180012 1111-430-3125-440411 Eqpt 9C06552 Total: 81,0 )SEP11 Total: 335.98 0.00 07/03/2012 -aekets 6410 335.98 65.58 0.00 07,413/2012 Tractor 13racket 641(1 65.58 401.56 TASC11 T.A. Schilsky RE sons Inc 53281 06112/2012 I -1,1-.09 0.00 (17/(13/2012 Asphalt 1))1-430-3120-42240 Street Maintenance Materials 53281 Total: 141.09 TASCI1 Total: 144.09 IDS TDS M Err-Roc:um - 651-779-8882 06,'13/21112 197.75 0,00 07/03/2012 Analog Lines - Fire 101-420-222(143210 Telephone 651-779-8882 06/13/2012 210.19 0.00 (17/03/2012 Analog Lines - Public Works 1(11-43(1-3100-43210 Telephone 651 -770-8882 06/13/2012 150.60 1E00 07103/2012 Analog Lines - UR Station Alarms 602-495-9450-43210 Telephone 651-779-8882 1)6.'13/2(112 47.78 0.00 07/03/2012 Alarm - Well House #2 602-495-9450,43210 Telephone 651-779-8887 Total: 606.32 •Fotal: 606.32 TIMUTI Truck 1.11ililies Inc. 241(678 06/11/2012 5.80 0.110 07/03/2012 6410 Tractor (-lose Elbow 101-430-3120-42210 Equipment Parts 240678 1 oiak 5.80 'IRK( I'll Total: 5.811 VFLIA Benefit Asscoiation Volunteer Hi e 06/27/2012 06/27/2012 101-420-2220-44330 Dues & Subscriptions 06/27/2012 VI 11 A Total: AP -1 o De Paid Prool List 016.,28/12 - 3:03 P1\1) 282,00 0.00 07/03.12012 Renewals 282.00 282.00 No 0000 No 0000 No 0000 No 0000 No 0000 No 0000 No 0000 No MOO No 0000 Page 8 Invoice # Inv I/ate 1,11(i))VICI I \'irgovicli 'Design Ck Req 0690"201 2 803-000-011110-2290(1 Deposits Payable Ck Req To VI ICR)VI(:11 \VASIZADIO \VASIIING IT.)1\I COUNTY 7267-1 06(1.1i2(111 101_420,..2720,13 )31) Ruldul 72671 (16/13/ 21112 1111-4211- 22211-43230 RicI 72674 Total: WASRADIO oink 7.A NVAI)SK I Zawadski Homes, Inc ck Req 06128/2012 8tr3-000-0000-220flII Deposits Payable ck Req T('m!: 7AWAI)SKI Repot lo131: Annum( (Inanlily Pint Dale t)escriplion 110'o-ewe 501100 0,00 07/03/2012 Relimid Escrow 2979 Lake Elmo ti8141 5,01111.110 5,00(1.00 1,734.0R (1.(10 07/0312(112 I /4rly user ree For 800('(Hz radios ((.0() (17203/21112 Radin Rermir/Nlaintenance Mod 3.8416.08 3.8,16,I18 26.500.00 (1,(10 07413/2012 Rebind pod of Permit Escrow 1/8245 26.500,00 26,500.00 S11,972.46 I ask pe PO # 1,_10SC No 00(10 No 11000 No IMO No 0000 AP - lo Be Paid Proof list (06128/12 - 3:03 rm) Page 9 Accounts Payable To Be Paid Proof List tIcr: an z Printed: 06/26/2012 - 12:47 1 R-1 Hatch: 013-06-2012 Invoice # Inv Dole CENUOI.LE Century College 461552 06/26/2012 101-420-2220-44370 Conferences & Training 461552 Total: CENCOLLE Total: Report Total: Amount: Quantity Pint Date Description Reference Task Type IT/ it Close 1)011,ine 556.00 556.00 556M0 556.00 0,00 06/26/2012 Eire Apparatus Driving - 3 Firefighters No ONO AP - To 13e Paid Proof List (06/26112 - (2:47 PM ) Page 1 Accounts Payable 'io_Be Paid ProoFList z Printed: 06/2012012 - 303 PfV1 Hatch: 011-06-21/12 Invoice # Inv Date Amount Quantity I'mt Date Description Reference Task Type l'O # Close POLine FRELIFT Luke Elmo Fire Relief Assn. 06/211/17 0600/2012 2,632.00 0,00 06/20/2012 Additional due to Audit No 0000 101-420-2 )50-14925 City Contrihution (16/2(1/12 Total: 2,632,00 LERELIFT 1 ()tar 2,632,00 Report 'NMI: 2,632.00 AP -1 o Be Paid Pi °oil iql (06/20/12 - 3:03 Pm) --- Page 1 Accounts Payable To Be Paid Proof List User: .joan z Prinle(I: 1)61M/2012 - ()AO ANI 016-06-2012 Invoice it lov Date Amount (Planlily Poll Date Descriplion Reference Task, Type PO tt Close POrine Inc. 06/30/2012 06130/2012 2,000.00 0,00 07/0312012 Assessing Services - June 2012 101 111-1320-43 100 Assessing Services 0600/2012 2,000.00 FX I_ Total: 2000.00 epoi ()till: 2.000.00 No 000c Al' - To 13e qui kis( 106/29/1 2 - 9:)0 AM) rage 1 -II-1E CITY OF IAKE ELMO MAYOR AND COUNCIL COMMLTNICATION DATE: 07/03/2012 CONSENT ITEM #: 3 MOTION Consent Agenda AGENDA ITEM: Approve Resolution 2012-32 Designating Certified Building Official and Approval of WA with the City of Hugo SUBMITTED BY: Sandie Thone. City Clerk THROUGH: Dean A. Zuleger, City Administrator REVIEWED BY: Dean A. Zuleger, City Administrator SUMMARY AND ACTION REQUESTED: As part of the Consent Agenda City Council is respectfully requested to approve Resolution 2012-32 designating the certified building official for the City of Lake Elmo as the City of Hugo and enter in a joint powers agreement with the City of Hugo for administration of the state and the municipal building code. STAFF REPORT: With the departure of Karl Horning, staff began the search for a replacement to administer the state and municipal building code for the city. Per MN Statute 326B.133, Subd.1 Se 7, the municipality must designate a certified building official to administer the code and the commissioner must be notified within 15 days of any vacancy or designation. The attached Notice of Designation was signed by City Administrator Dean Zuleger and was submitted to the MN Department of Labor and Industry on Rine 25, 2012 designating the City of Hugo as our Certified Building Official. In addition please find attached the proposed Joint Powers Agreement Between the City of Lake Elmo and the City of Hugo outlining the services and fees for the administration of the state and municipal building code. RECOMMENDATION: Stuff recommends that the City Council approve Resolution 2012-32 Designating the Certified Building Official asthe C'iry of Hugo and a Joint Powers Agreement Between the City of Hugo and the Cirr of Lake Elmo for Administration of the ,State and A/lunicipal Building ('ode ellective1v immediately and 1/17111 SUChfilither 17011Ce CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINESOTA RESOLUTION 2012-32 A RESOLUTION DESIGNATLNG CERTIFIED BUILDING OFFICIAL WHEREAS, the City of Lake Elmo has adopted the Minnesota State Building Code; and WHEREAS, the City is authorized and empowered to provide administration and a certified building official is required by Minnesota State Statute for implementation; and WHEREAS, the City of Lake Elmo has determined it is in the best interests of the City and its citizens to designate the City of Hugo to provide such services to the City immediately and until such further notice; NOW, THEREFORE IT BE RESOLVED, the City of Hugo as the Designated Certified Building, Official for Lake Elmo to administer the State and Municipal Building Code. ADOPTED BY THE CITY COUNCIL OF THE CITY OF LAKT, ELMO THIS TH DAY OF JULY 2012. Dean A. Johnston Mayor ATTEST: Sandie Thone City Clerk Resolution 2012--32 THE CITY OF June 25, 2012 MN Department of Labor and Industry Construction Codes and Licensing Division/Business Unit 443 Lafayette Road North St Paul, MN 55155-4341 Re: Notice of Designation of Certified Building Official for the City of Lake Elmo To the Commissioner of Labor and Industry: Please find attached the Notice of Notice of Designation of Certified Building Official for the City of Lake Elmo signed by the City Administrator on lune 25, 2012. As defined by MN Statute 326B.103 the City is required to formally designate a certified building official accepting responsibility for code administration. lf you should have any questions please do not hesitate to contact me at 651.747.3900. Thank- you, Sandie Thone City Clerk City of Lake Elmo L.wity OT _ake =Imo .) orin' aKe =Imo, From:C!TY OF HUGO 651 426 2659 06' '2012 0b:22 134 P.0021002 Minnesota Department of Labor and industry Construction Codes and Licensing Division Business Unft 443 Lafayette Road North, St. Paul, MN 55155-4341 Phone: (651)284-5068 Fax: (651) 284-57.49 www.dli.mn.gov TTY: (651) 297-4193 PRINT IN INK or TYPE- your responses. To the Commissioner of Labor and indsutry: According to M.S. §3266.133, Subd. 1, which states: Notice of Designation or Vacancy Of Certified Building Official Each municipality shall ciesignate a building official to administer the code. A municipality may designate no more than one building official responsible for code administration defined by each certification category established in rule, Two or more municipalities may combine in the designation of a building official for the purpose of administering the provisions of the Code within their communities. and further, according to M.S. §3266.133, Subd. 7, which states in part: In the event that a designated building official position is vacant within a municipality, that municipality shall designate a certified building official to fill the vacancy as soon as possible_ The commissioner must be notified of any vacancy or designation in writing within 15 days. The -administrative authority of the municipality of Hereby notifies you, pursuant to M.S. §3268,133, that it has made one ot thefoIowing designations (A or 6 selected): A. Municipality has designated 44 0LR E Mt 44)ilf.. Z47 NAME (INCLUDE MIDDLE INITIAL as the municipality's building official who in the mu will be nown as the 'TITLE MUNICIPALITY CONTACT INFORMATION !MUNICIPALITY STREET ADDRESS (do not provide a PO Box) cl7A o , CITY , /10 PHONE I FAX MUNICIPAL BUILDING OFFICIAL CONTACT INFORMATI BUILDING OFFICAL STREET ADDRESS tco not provide a PO Elo) / 22" PHONE g- - ORB. FAX -- tSTATE STATE - CERTIFICATION NUMBER , effective DATE / -MAIL ‚zip I ZIP E-MAIL rg6:1, I 1 Municipality has a vacancy in tne building official position. effective I DAT= Statutory definitions from M.S. §326B.103, Subd. 6 Designate "the formai designation by a municipality's administrative authority of a certified building official accepting responsibility for code aciministration." Administrative authority "a municipality's governing body or their assigned administrative authority." Plake have person with admini5916/—(appointing) authority sign. Form must be signed. .si TrIRE OE- AiIIIISTRATi7VJTHORITY io- i, !TITLFT\ I DATE EU 01 (6/09:o Administration of the State Building Code Agreement Between City of Hugo and City of Lake Elmo WHEREAS, the City of Lake Elmo (hereinafter "City") has adopted the Minnesota State Building Code; and WHEREAS, the City is authorized and empowered to provide for plan review and various types of inspections to ensure the public health, safety and welfare of its citizens; and WHEREAS, said building code requires a certified building official for the implementation of the state building code; and WHEREAS, the City has investigated the facts and determined that it is in the best interests of the City and its citizens to contract with the City of Hugo for administration of the state building code; and WHEREAS, the City of Lake Elmo desires that the City of Hugo provide said plan review and inspections within the City of Lake Elmo at such times that are required; and WHEREAS, the City of Lake Elmo desires that the City of Hugo Building Department, which verifies that it has a certified building official, implement and enforce the Minnesota State Building Code; and WHEREAS, the City of Hugo is willing, able and hereby commits itself to the implementation of said building code for the City during such times as requested by the City of Lake Elmo until further notice; NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other contained in this Agreement, the City of Lake Elmo and the City of Hugo, pursuant to the authority contained in Minn. Stat. § 471.59, in order to accomplish the foregoing purposes, agree as follows: ARTICLE I THE AGREEMENT Section 1.01. Purposes. The purpose of this Agreement is to provide for the exchange of services as provided in the recitals, which shall be incorporated herein, between the City of Hugo and the City of Lake Elmo for building inspection and plan review services. Section 1.02. Cooperation. The Parties shall cooperate and use their best efforts to ensure the most effective implementation of the various provisions of this Agreement. The Parties agree in good faith to undertake resolution of disputes, if any. 1 in an equitable and timely manner. Section 1.03. Term. The term of this Agreement shall be for a period commencing the date hereof and shall remain in place and in effect until and unless terminated by mutual agreement or by one of the Parties hereto. Section 1.04. Termination by One Party. A Party's termination of this Agreement shall be effective 21 days after such Party's delivery in writing of a notice of termination to the City of Lake Elmo City Administrator or the City of Hugo City Administrator, as the case may be. ARTICLE II THE CITY'S RIGHTS AND OBLIGATIONS Section 2.01. Plan Review and Inspections. The City of Hugo shall perform plan review and inspections for all public and private buildings and state licensed facilities required intermittently and at the request of the City of Lake Elmo. The City of Hugo shall not be obligated to review, approve or deny any zoning, site design, setback, road access, or sewer and water hook-ups, and/or collect fees for the same. Section 2.02. Fee for Inspections and related Services.. in exchange for the inspection services the City of Hugo performs pursuant to Section 2.01 of this Agreement, the City of Lake Elmo shall pay the City of Hugo an hourly rate and a mileage rate per the City of Hugo's adopted fee schedule, which shall be incorporated herein as Exhibit A, as said schedule may change from time to time, Section 2.03. Fee for Plan Review Services. In exchange for the plan review services the City of Hugo performs pursuant to Section 2.01 of this Agreement, the City of Lake Elmo shall pay the City of Hugo the entire Plan Review Fee collected by the City of Lake Elmo as required by the City of Lake Elmo's adopted building code. ARTICLE III GENERAL PROVISIONS Section 3.01. Notices. Except as provided in Section 1.04 of this Agreement, all notices or communications required or permitted pursuant to this Agreement shall be either hand delivered or mailed to the Parties, certified mail, return -receipt requested, at the following addresses: City of Hugo: City Clerk 2 City of Lake Elmo City of Hugo 14669 Fitzergald Avenue North Hugo, Minnesota 55038 City Clerk City of Lake Elmo 3800 Laveme Avenue North Lake Elmo, MN 55042 Each Party may change its address or authorized representative by written notice delivered to the other Party pursuant to this Section 4.01. Section 3.02. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which taken together shall be deemed a single instrument. Section 303. Non -Assignability. Neither of the Parties shall assign any interest in this Agreement nor shall transfer any interest in the same, whether by subcontract, assignment, or novation, without the prior written consent of the other Party. Such consent shall not be unreasonably withheld. Section 3.04. Alteration. Any alteration, variation, modification, or waiver of the provisions of the Agreement shall be valid only after it has been reduced to writing and duly signed by all Parties. Section 3.05. Indemnification and Insurance. (1) Unless otherwise provided for in this Agreement, each Party shall be separately responsible for its own expenditures of funds made under this agreement. (2) Subject to the exclusion contained at Paragraph (1) of this Section, the Parties' total liability under this Agreement shall be governed by Minn. Stat. § 471.59, subd. 1 a. Each Party agrees that it will be responsible for the acts or omissions of its officials, agents, and employees, and the results thereof, in carrying out the terms of this Agreement, to the extent authorized by law and shall not be responsible for the acts/omissions of the other Parties and the results thereof. For purposes of determining total liability for damages, the participating governmental units are considered to be a single governmental unit, the total liability of which shall not exceed the limits for a single governmental unit as provided in Minn. Stat. § 466.04, subd. 1. Each Party agrees to defend, hold harmless, and indemnify other Parties, their officials, agents and employees, from any liability, loss or damages any other Party may suffer or incur as a result of demands, claims, judgments, or costs arising out of or caused by the indemnifying Party's negligence in the performance of its respective obligations under this Agreement. This provision shall not be construed nor operate as a waiver of any applicable limitation of liability, defenses, immunities, or exceptions by statute or common law. (4) Each Participating Party shall be responsible for injuries or death of its own Employees to the extent required by law. Each Participating Party will maintain workers' compensation insurance or self- insurance coverage, covering its own Employees while they are providing assistance pursuant to this Agreement. Section 3.06. Severabilitv. The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause, or phrase of this Agreement is for any reason held to be contrary to law, or contrary to any rule or regulation having the force and effect of law, such decision shall not affect the remaining portions of this Agreement. Section 3.07. Interpretation According to Minnesota Law. This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. Section 3.08. Entire Agreement. This Agreement shall constitute the entire agreement between the Parties and shall supersede all prior oral or written negotiations, and shall supersede all prior written agreements for the subject matter of this Agreement. Section 3.09. Headings. The headings to the various sections of this Agreement are inserted only for convenience of reference and are not intended, nor shall they be construed, to modify, define, limit, or expand the intent of the Parties as expressed in this Agreement. Section 3.10. Further Actions. The Parties agree to execute such further documents and take such further actions as may reasonably be required or expedient to carry out the provisions and intentions of this Agreement, or any agreement or document relating hereto or entered into in connection herewith. Section 3.11. Parties in interest. This Agreement shall be binding upon and inure solely to the benefit of the Parties hereto and their permitted assigns, and nothing in this Agreement. express or implied, is intended to confer upon any other person any rights or remedies of any nature under or by reason of this Agreement. 4 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representative as of the day and year first above written. Adopted and approved by the City of Hugo on the day of , 2012. Fran Miron, Mayor ATTEST: Michele Lindau, City Clerk Adopted and approved by the City of Lake Elmo on the day of , 2012. Dean Johnston, Mayor ATTEST: Approved as to Form: City Attorney DATE: , 2012 Exhibit A 5 Building Inspector Fee Mileage Rate $58.00/hour $0.555/mile THE. CITY OF ILNKE ELI\ 0 MAYOR AND COUNCIL COMMUNICATION DATE: 07/03/2012 CONSENT ITEM 4: 4 MOTION Consent Agenda AGENDA ITEM: Approve Building Official Position. Posting and Recruitment SUBMITTED BY: Sandie Thone. City Clerk THROUGH: Dean A. Zuleger, City Administrator REVIEWED BY: Dean A. Zuleger, City Administrator Kyle Klatt. Director of Planning SUMMARY AND ACTION REQUESTED: As part of the Consent .Agenda the City Council is respectfully requested to consider approval of the Building Official position description. the posting of the position and the recruitment for a Building Official for the City of Lake Elmo to perform all operations of the Code Enforcement and Building Inspection department. STAFF REPORT: With the departure of Acting Building Official Karl Horning, city staff set out to define the needs of the city with regards to this position keeping in mind our current and future objectives. Please find attached the position description for the Building Official staff is recommending. The position description was created based on current and future organizational needs/goals. feedback from staff with regard to relevant areas for enhanced processes and service delivery levels to support increased activities and future demands. In addition, staff aimed to define our needs in filling this position and have determined it to be in the best interest of the city to post and recruit for the position of a full time 1,0 FTE Building Official with the stated qualifications to administer code enforcement and building inspections for the city. Staff performed a salary survey of building officials in metro area cities with similar populations, growth opportunities and organizational structure to determine the desired salary range dependent upon qualifications for this position. RECOMMENDATION: staff recommends the. City Council approve the position description of Building Official at the pay range of S55,5N6 io STI,226 and approve stafito post and begin reCTUM17C1711br the building official position. THE CITY OF kKE ELMO The City of Lake Elmo offers competitive pay and benefits in addition to professional development opportunities to all employees. The city's number one value statement is to foster an environment based on trust and ethics. These philosophies and practices help the City in recruiting and retaining exceptional employees. SALARY: OPENING DATE: CLOSING DATE: POSITION TITLE: DEPARTMENT: ACCOUNTABLE TO: FLSA STATUS: Accepting Applications for the Position of: BUILDING OFFICIAL $55,586 to $71,226/DOQ 7/5/2012 7/27/2012 Building Official Code Enforcement - Building Inspections Director of Planning Exempt PRIMARY OBJECTIVE: This individual will perform all operations of the Building Inspection Department to help promote quality construction and high standards of design throughout the City of Lake Elmo. This includes administration and enforcement of State building codes, City zoning ordinance enforcement, and implementation of property maintenance codes within Lake Elmo. Plan, develop, and implement methods to maintain optimum service levels in all phases of building and fire inspections, city code enforcement and designated environmental health services. Resolve complaints and/or concerns regarding code issues. ESSENTIAL FUNCTIONS OF THE POSITION 1. Establish and maintain policies and procedures for the Building Inspection Department including record keeping processes, inspection scheduling, fee collection and enforcement. 2. Manage and perform plan reviews and building inspections on all types of building structures (commercial, industrial and residential) to make sure that they meet building, zoning and related code requirements. This includes new construction, remodeling and additions to insure that structures are built consistent with official building codes. Communicate with architects, engineers, contractors and property owners to interpret and clarify code requirements. 4. Authorize and ensure issuance of various permits as required by city code enforced by the City. .mwstgatammr.marm2==tmolaza,==..... 3800 Laverne Avenue North * Lake Elmo * Minnesota * 55042 * 651.747. 900 5. Maintains record of erosion control violations and coordinates we City's enforcement of erosion control requirements for new construction. 6. Issues Certificates of Occupancy for structures and verifies with other City staff that all site and development requirements have been met prior to issuance. 7. Verifies that site construction activity is in conformance to approved plans, coordinates City action to bring non -compliant sites into compliance. 8. Interprets building and housing codes for inspectors, contractors, and the general public. 9. Ensure complaints involving building codes and related ordinances are investigated in a timely manner. Initiate appropriate legal action regarding violations that are not corrected. 10. Keep abreast of innovations and developments in the construction industry and how changes in materials and construction practices relate to code requirements. Maintain effective enforcement and inspection techniques, practices and procedures including technology and software innovation. 11. When necessary attend development review, city council and planning commission meetings to provide input on building code and zoning ordinance requirements for proposed construction and development projects. 12. Establish and maintain policies and procedures for zoning administration which includes enforcement of the zoning, property maintenance and sign ordinances and takes action to ensure compliance with these. 13. Responsible for keeping supervisor informed of issues and adequately resolving issues quickly. Recommends procedures and policies to supervisor in cases not clearly covered by codes and ordinances. 14. Responsible for preparing and processing ordinance amendments as needed. 15. Responsible for ensuring department reports are completed and accurate. 16. Oversee maintenance of department work records and implementation of document management system. 17. Make recommendations to supervisor with regard to the annual budget for the Building Inspection Department. 18. Performs facilities management functions as they relate to City Hall. PERFORMANCE CRITERIA • Skills in mediation, complaint resolution and problem solving. • Team player with the ability to collaborate and implement effective customer service. Strong initiative to improve processes and productivity. Ability to effectively use a computer and various software programs, including software for tracking building inspections and permitting activity. Ability to maintain a positive and effective working relationship with council, commissions, businesses, designers, contractors, residents and staff. Ability to communicate effectively, both orally and in writing. • Thorough knowledge and understanding of the pertinent state and local codes and licensing requirements applicable to the City of Lake Elmo and the legal aspects of code administration. Ability to read and interpret plans, specifications, engineering and architectural project drawings, and electronic documents accurately and to compare them with construction in progress. Ability to enforce codes and ordinances firmly, tactfully and impartially and deal with difficult situations. Understanding and experience working with best management practices for construction activity. t„=,^7.7z77,13.,,:zFlorz.--,7ranx 277, 3800 Laverne Avenue North * Lake Elmo * Minnesota 55042* 651.747.3900 Develop and maintain effective working relationships with other City departments, Administration, Public Works, Fire, Planning, Engineering, etc. Ability to physically move about all areas of construction properties to carry out duties. Ability to manage multiple projects and meet deadlines working in a fast paced environment. MINIMUM QUALIFICATIONS State Certification as State Building Official ICC Certification as plans examiner or building official or ability to obtain within 1 year of hire date. Bachelor's degree in related field; may substitute equivalent years of related work experience in construction, inspections, facilities management for degree. Five years experience in construction or a related field in public or private sector. Expertise in plumbing, electrical and/or HVAC a plus. • Experience with Microsoft Products (Word, Excel, Powerpoint) • Valid MN Driver's License DESIRABLE OUALIFICATIONS • Experience with inspections, property maintenance, sign permits and/or planning and zoning in Public Sector SUPERVISION RESPONSIBILITIES N/A PHYSICAL REOUIREMENTS Positions in this class typically require: sitting, feeling, manual dexterity, grasping, talking, and hearing, typing, and seeing. The individual may encounter unexpected and prolonged workdays and stress and pressures from dealing with emotional issues and conflicts. There is sustained exposure to computer keyboards and video screens. This position is light duty and may require the exertion of up to 20 pounds of force on occasion or a negligible amount of force frequently to lift, carry, push, pull or otherwise move objects. PLEASE APPLY BY CLOSING DATE: JULY 27, 2012 SEND COVER LETTER, RESUME, AND REFERENCES TO: CITY OF LAKE ELMO ATTN: SANDIE THONE, CITY CLERK 3800 LAVERNE AVENUE NORTH, LAKE ELMO, MN 55042 OR STHONE@LAKEELMO.ORG PLEASE VISIT OUR WEBSITE AT LAKEELMO.ORG FOR ADDITIONAL INFORMATION OR CONTACT US AT 651.747.3900 CITY OF LAKE ELMO IS AN EQUAL OPPORTUNITY EMPLOYER -33.33137.73.-3, 3313333333,(54301.1.3.,%=.41910%.=7 ',NE, • "ItaITTC, r33-3X.3331:71693M-3333.33.3. 3 333 3 33.33. ca3333,333 333333771133337,133-1-'1" 3800 Laverne Avenue North * Lake Elmo * Minnesota * 55042 * 651.747.3900 333=3.337== :1^3, 3tr 333 UHF CLIY r AKE ELM MAYOR AND COUNCIL COMMUNICATION DATE: 07/03/2012 CONSENT ITEM #: 5 MOTION Consent Agenda AGENDA ITEM: Proclaim August 9 through 12, 2012 Huff n' Puff Days SUBMITTED BY: Sandie Thone, City Clerk THROUGH: Dean A. Zuleger, City Administrator SUMMARYAND ACTION REQUESTED: As part of the Consent Agenda City Council is respectfully requested by the Lake Elmo Jaycees to proclaim August 9 through 12, 2012 Huff ill Puff Days in the City of Lake Elmo. The proclamation has been provided for the mayor to read and sign. 36th Annual Lake Elmo Jaycees P.O. Box 198 Lake Elmo, MN 55042 LAKE ELMO JAYCEES 2072 WHEREAS, the Lake Elmo Jaycees have been a vital part of the development of young leaders of our community the past 41 years and WHEREAS, this organization of young people will again be sponsors of Huff n' Puff August 9th, 10th, 11th, and 12th 2012. ke Eimo aycees NOW, THEREFORE, I, Dean Johnston, Mayor of Lake Elmo, do hereby proclaim the second week in August 2012 to be u a s in Lake Elmo, and urge all citizens of our community to give full regard to past and continuing services of the Lake Elmo Jaycees. Signed this day of July, 2012 Dean Johnston, Mayor of Lake Elmo TI IL OF LAKE ELMO MAYOR AND COUNCIL COMMUNICATION DATE: 07/03/2012 CONSENT ITEM: 6 MOTION Consent Agenda AGENDA ITEM: Temporary Liquor License for Lake Elmo Jaycees SUBMITTED BY: Sandie Thone, City Clerk THROUGH: Dean A. Zuleger. City Administrator SUMMARY AND ACTION REQUESTED: As part of the Consent Agenda City Council is respectfully requested to consider approval of a temporary on -sale liquor license issued to Lake Elmo Jaycees for their Huff n' Puff Days event held August 9 through 12, 2012, subject to approval of the Director of Alcohol and Gambling Enforcement. In addition the city council is requested to waive the $25 liquor license fee and the fee for the Lion's Park ball field g„. BACKGROUND INFORMATION: Pursuant to Lake Elmo City Code Chapter 111,17 Section B3 temporary on -sale licenses shall be issued only to clubs. charitable. religious or other non-profit organizations in existence for at least three years and shall authorize the on -sale of intoxicating liquor in connection with a social event sponsored by the licensee and subject to the restrictions imposed by MN Statute 340A, STAFF REPORT: Lake Elmo Jaycees will hold their annual Huff n' Puff Days event August 9 through 12, 2012 and have requested an on -sale temporary special event liquor license to allow for the safe sale of alcoholic beverages at the event. They have successfully submitted an application, certificate of insurance for liquor liability and proof of their non-profit status, RECOMMENDATION: Staff recommends city council approve a iemporariv on -sale liquor license is -sued to Lake Elmo Jaycees l'or their Huff n Puff Dais event' held August 9 through 12., 2012, subject to approval of the Director of Alcohol and Gambling Enforcement and waive both the $25 liquor license ,,ke and the ,fee for the Lion's Park ball field lighting. Minnesota Department of Public Safety ALCOHOL AND GAMBLING ENFORCEMENT DIVISION 444 Cedar Street Suite 133, St. Paul MN 55101-5133 (651) 201-7507 Fax (651) 297-5259 TTY (651) 282-6555 WWW.DPS.STATE.MN.US APPLICATION AND PERMIT FOR A 1 TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NAME OF ORGANIZATION Lck:k c rn aL STREET ADDRESS Pc 9 ?, r.E. OF PERSON MAKING APPLICATION rill tDnrCP._ DATES LIQUQR WILL BE SOLD "/-- 1 i ORGAtaZATION OFFICER'S NAME c--A rail Cut ic ORGANIZATION OFFICER'S N. eP frU ORGANIZATION OFFICER'S NAME OX roe - 5+-cAle ()canon license v411 be used. If an outdoor area, descrih Li (--n--‘,<-;. •Vcc r k_ ,C:Ck e DATE ORGANIZED 0 4- t -1 (7,) CITY Lc-A-14,e -11 BUSINESS PHONE ') TAX EXEMPT NUMBER S-t Cr,' Z-5 LE qi- i'-e7?Lfic/4-1 STATE ZIP CODE HOME PHONE, - 7 2_ TYPE OF ORGANIZATION CLUB CrHARTTABLE • RELIGIOUS OTHE ADDRESS ADDRESS ADDRESS 05 1 r ) ONPRO T) (-In:, De prt, p Arvxt,41,-, cr) -7_ (-4 c, P r • theapplicant contract ntoxicating liquor service? If so, give the name and address of the liquor licensee providing the service. Will the applicant carry liquor 1.11 insurance? if so, please provide the carrier's narneand,a of coverage. 1 (1 r'IL-a3, ; rv,p L. rii, 1- APRON AL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL & GAMBLING ENFORCEMENT CITY/COUNTY CITY FEE AMOUNT DATE FEE PAID DATE APPROVED LICENSE DATES SIGNATURE CITV CLERK OR COUNT1OFFICIAL APPROVED DIRECTOR ALCOHOL AND GAMBLING ENFORCEMENT NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city andior county to the address above If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the License for the event PS-09079 (05/06) Nonprofit Corporation status Lake Elmo Jaycees usiness Lin Se =Office of :t 1e ch Business `il ngs Business Record Detal - • File ,,rretrdrrer�t nr ierre° , Minnesota 5usines (Name Busines Type Ilonpi ofrt Coipor File Nurnkber Filinc; Date 01 '1 O:?Utf E'enewal Due Dais: 12.11,201_' F:eui:,ter iOptioi a Fiiiinc History ! Rene'wal History c Sale Order Copies Carder a Certifi MN Statute. f17A Horne Juri'vc Minnesota Statu:_: Active In Goof[ Standintr F'eoistered Cif 3800 Laverne Avg- 11 Lake Elmo r+nll 55042 USA Fre.siderr S;� alp OuicI; 3185 karth Roar! Apt1ry: White Beal Lake MU 5110 THE CITY OF L\KE ELM0 MAYOR AND COUNCIL COMMLTNICAT1ON DATE: July , 2012 REGULAR ITEM #: 7 MOTION AGENDA ITEM: 2011 Annual Financial Report & Management Letter Presentation SUBMITTED BY: Cathy Bendel, Finance Director THROUGH: Cathy Bendel, Finance Director REVIEWED BY: Dean Zuleger, City Administrator Matt Voss; Abdo, Eick & Meyers LLP SUMMARY AND ACTION REQUESTED: The City has retained the services of Abdo, Eick & Meyers to audit the financial statements for 2011. Enclosed are the 2011 Annual Financial Audit Report and Management Letter. The City Council is asked to review and accept the 2011 reports. BACKGROUND INFORMATION: Annually, the City engages the services of an independent outside audit firm to review the financial statements. The accountants are asked to assure that the financial statements are free of material misstatement to the extent possible. They also review to ensure that the proper internal controls are in place. STAFF REPORT: Matt Voss from Abdo, Eick & Meyers will present the report and respond to any inquiries. RECOMMENDATION: It is recommended that the City Council accept the 2011 Year End Annual Financial Report and Management Letter. ATTACHMENTS: 1. 2011 Annual Financial Report 2. 2011 Management Letter THE CITY OF LNICE ELM 0 AGENDA ITEM: SUBMITTED BY: THROUGH: MAYOR AND COLINCEL COMMUNICATION Mayor and City Council Salaries Sandie Thone, City Clerk Dean A. Zuleger, City Administrator DATE: REGULAR ITEM #: MOTION 07/03/2012 8 SUMMARY AND , A CTION REOIJES TED,: The City Council is respectfully requested to consider the adoption of Ordinance 2012-60 Setting Mayor and City Council annual salaries effective January 1, 2013 in the amount of $6.250 and $4,860, respectively. STAFF REPORT: In November of 2011 the city council asked staff to bring forth an ordinance raising the annual salaries of mayor and council members from the current levels of S3,915 and $3,130, respectively to the proposed 56.250 and $4,860. The current salaries for mayor and city council have been in effect since January 1, 2008 and were set by Ordinance 97-160. A proposed ordinance was presented by staff in December 2011 and failed by a 2 -3 vote of the council. A comparative study of mayor and council salaries was included with the request and is attached for your review. Per MN Statute and Lake Elmo City Code city council must set salaries by ordinance prior to a regular city election and the salary adjustment may not take effect until the January 1 of year following the next city election. RECOMMENDATION: Stafierecornmends city council adopt Ordinance 2012-60 Setting Mayor and City Council annual salaries effective January 1. 2013 in the amount of $6,250 and $4,860, respectively. CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA INANCE 2012-60 AN 0ONCE SETTING MAYOR AND CITY COUNCIL SALARIES Section 1: Ordinance 2012-60: The Lake Elmo City Council hereby ordains Section 200.01, Subdivision 8 are amended to read as follows: 8. Salaries of Mayor and City Council Members a. Effective January 1, 2013, the annual salary of the mayor shall be $6,250 and the annual salary of each council member shall be $4,860. Section 2: Effective Date: This ordinance becomes effective on January 1, 2013 after its publication. ADOPTION DATE: ADOPTED BY LAKE ELMO CITY COUNCIL ON THE THIRD DAY OF JULY 2012. CITY OF LAKE ELMO CITY COUNCIL Dean A. Johnston Mayor Attest: Sandie Thone City Clerk This Ordinance 2012-60 was published on the day of 2012. (Seal) Comparative Mayur and Council Saiariet from 2011 League of Minnesota CitiesSalary Survey all Metro artez pardzipanmta survey with 5.000 - 25,000 population .Saianes in Descending Cade Othe Cir Population Iviavor Council Compensation Columbia ii6gtas 18.361 5 13.800 5 7,800 Golder: Valley 20,132 5 11.619 8 8,696 $50iaddi mtg. man 3 mtgs'mo New Hope 20.718 S 10.672 5 7.553 52L5 per .',1:A meeting. Robbinsciait 13,775 S 10,151 5 8,097 C.rystai 22,014 5 10,307 5 7,929 South Si. Paul 20,186 5 10.200 S 6.600 Champlin 2.3.934 $ 9.95C 8 6.610 Prior Lake 23.335 5 9,420 5 7.440 Stillwater 18.235 S 9. ,000 5 7.200 New Briginon 22,321 S 9,600 5 7,553 Rosemount 21.521 5, 8.528 .5 6396 $35/Pom Authority m=intz Ties -rings 22.491 S 8,400 5 6.000 Chaska 24.177 5 8_208: S. 6.948 West Sain: Paul 18,947 5 8,106 5 05,500 Farmington 18.959 S 8.040 S 7.020 REMISCY 73.27'1 S 8.000 5 6,000 SL Anthony Village 8,437 5 7.500 $ 6,000 Mayo:- pro -tern: $6,756 salary V atinais Height: 13.071 5 7,500 5 6,000 Spring- Lakc Paait 6.768 5 7.234 $ 6,000 Fort Lake 17.496 S: 6.500 S 5.500 North Saint Paui 11,569 5 6.400 S 2.21.10 East Bathe) 12.090 $ 15.300 5 5.700 Mountie View 12.733 5 6.300 S 5,700 Lino Lakes 20,305 5. 6,272 5 5.018 $40,addl meeting Bain Lake 15.324 5 6.006 S 4.900 Channasser. 23.629 $ 6.000 5 11.806 550eaddi rneetip Dayton 5,072 5 6.000 $ 4.800 Hookint 17.296 5 6.000 5 4.800 Little Canthe 10.016 5 5.700 S 4,630 Ivies -dam Heights I 1.766 S, 5.700 $ 4.200 Faison Beight 5,763 5 5.400 S 15,400 Waconiz 10,183 5 4,800 5 4.000 Mantomedi 8.143 $ 4.800 S, 3.600 tviiiinetrista 6296 5 4,80(1 5 3.600 $50/addi meeting: Oak: Grove, 8.579 5 4,772 5 4 ,100 EDA: Mayor, $107=6: Council $95imo Circle Pme5 5_297 5 4,500 5; 3,900 Saint Francis 7.4.55 5 4.500 5 3.900 535/half-day Mound 9.7 // 7 S 4.500 i, 3,000 Nev.: Prop: 7,081 5 4,440 5 3,2 44 Sain Paul Faer 5.22; 5. 4.350 .5 3.800 Medina 5.026 5 4,250 5; 3,000 Roger:: 7.497 5 4.200 5 3,60( Orono 7.980 5 4,200 S 3.500 Lake Eime 92116 5 1915 5 3,130 Anied Hill: 11..137 5 1600 5 5.200 Siiorewood 7.618 S 3.606 Sr, 3,000 Vic -tone 6.727 5 2.700 5 2.400 Corcoran 5.842 5 1.800 5 1.20( TI--I ()F LAKE ELMO MAYOR AND COUNCIL COMMUNICATION DATE: 7i3/12 REGULAR AGENDA ITEM #: 9 MOTION AGENDA ITEM: Country Sun Farms — Agricultural Building Construction SUBMITTED BY: Kyle Klatt, Planning Director THROUGH: Dean Zuleger, City Administrator REVIEWED BY: Nick Johnson, City Planner SUMMARY AND ACTION REQUESTED: The City Council is being asked to review a proposed request from the Country Sun Farm and Greenhouses to construct agricultural buildings on their property at 5500 Lake Elmo Avenue North. The proposed construction would involve a lean-to addition to an existing barn and a new structure to replace a farm building that has fallen down. Details concerning the location of the proposed building and the use of the structures are included in the attached letter from the Country Sun Fanns. Staff is recommending that that City Council authorize construction of the proposed structures as permitted agricultural buildings. The recommended motion to act on this on this request is as follows: "Move to authorize construction o two agricultural buildings at 5500 Lake Elmo Avenue North that are consistent with the A —Agricultural and RR — Rural Residential Zoning for this property" BACKGROUND INFORMATION: Under the terms of the approved Interim Use Permit for an agricultural sales operation on the property, City Council is required to review all new construction to determine whether or not proposed buildings would represent an expansion or modification of the agricultural business, The specific condition that requires this action is as follows: The addition of any new structures or buildings or expansion of existing structures or buildings, regardless of size, shall require notification to City Staff prior to construction, The City Council will determine if the changes will require an amendment to the Interim Use Permit or to the existing Conditional Use Permit on the site, Because the proposed buildings would be used for agricultural purposes not directly related to the sales or entertainment business, the proposed structures are permitted as agricultural buildings. There are no limits concerning the number or size of agricultural buildings on agricultural properties (A or RR Zoning) in the City that are over 20 acres in size. Since the Country Sun Farm property is zoned in this manner, the proposed structures are permitted under the Zoning Ordinance. RECOMMENDATION: Staff is recommending that that City Council authorize construction of two agricultural buildings at 5500 Lake Elmo Avenue North that are consistent with the A — Agricultural and RR — Rural Residential Zoning for this property. ATTACHMENTS: 1. Letter from Country Sun Farms 2. Proposed Building Location Map 3. Photograph of Barn Structure (Lean-to Area) SUGGESTED 0 ER OF BUSINESS: Introduction of Item ....... ...... ..... ..........,.... ......... ....... ....... City Administrator Presentation ..... ....... ..................... ........ .......... ........ . ....... . ..... Planning Director Questions from Council to Staff ..... ............. ........ ............. Mayor Facilitates Public Input, if Appropriate ..... ................ ..... ......... .......... ..... Mayor Facilitates Call for Motion ......... ....................... .......... ................. Mayor & City Council Discussion ...... ......... ..... ...... ................... ..... .............. ..... Mayor & City Council Action on Motion.. ....... .......„.............. ........... ......,... ............. Mayor Facilitates X' 'U' A 1: City of Lake Elmo 2800Laverne Ave. N. Lake Elmo, Mn. 55842 Dear Mr. Klatt, 5500Lake Elmo Avenue North Lake Elmo, wnnnewtF_sswz pricn (e511351-5139 Cell (6a1)sny-74zs Keuobergmunnilprnsn.com This letter is being sent tuyou aomfollow uptoour conversation the other day regarding the addition ofany structures tothe property at Country Sun Farm and Greenhouses. Anwereviewed ourvarious permits, it was determined that the addition of any structures to the property regardless of use would require notification to the city to determine if their use would be acceptable and fall under agricultural guidelines. We are proposing to add two additional agricultural structures to the property. The first one is a lien -to addition to an existing barn. The addition would be approximately 24' by 50', would be attached directly to the existing building, and would match the look of the old barn in that it would be all wood siding with a corrugated steel roof, The structure would be used to house farm implements inservice atour farm. This structures location (amarked onthe attached map musite 1. Also included is a photograph of the side of the barn that this lien -to would be attached to. The other structure being proposed would be located at site 2 on the attached map. This structure will be approximately 16' by 32'will also be all wood construction with a steel roof, and will be painted red tomatch the old red barn sitting next hoit, This structure will bebuilt upon the foundation/ replace an old farm building which was previously located on this site, which has fallen down. This structure will beused &uhouse two hay balers used onthe property. Thank you for you,thnmand consideration inthis matter. Keith Bergmann Print - Maps Page 1 of 1 maps 11211 60th St N, Stillwater, MN 55082 My Notes rn,bing.com 6, 4,104,01k-i,;',"firiiaW":7,*mrti'F,;, c;iotiei4,y,' :, ::,,”, in•t':',4% , .1114,140,t'.,446:4A*0,,,i,t,:.4c. ,,,,::',4 '.i'' '-':„.'--:,„'*44.4"iti,,,,,;,4',7„..i N',4,,,,;i'';';::iicA;k.fro,,i,j+,,4'4,6,i',.,:.-.44,4i,Z34.14.,,,,40.i.:,,40,:i Str.' Bird's eye view maps can't be printed, so another map view has been substituted. 6/13/2012 2012 City of take Elmo 3rdQuarter Pr ©,gram of ork Schedule Program Basics Council Draft i utes - Tuesday S P Before Council Council Packet Submissions - Thursday S P Before Counci Financial Statements, Building Per it Update — 2nd Counci eetir g Packet July 2012 Audit Complete Fall Festival FR Letters Out EDA Workshop Website Launch (D) / Newsletter 2012 Borrowing Complete Lake Ordinance Final Employee Handbook Draft to Council (D) Social Media / Cable Communication Policy Zoning for 1-94 Corridor Complete (D) 2013 Budget Draft Complete gust 2012 Deputy Clerk Position Filled EDA Resolution / Structure Adopted Demontreville Project Commences Budget Workshop Northland Securities Financial Analysis Administrative Assistant Position Filed 1-94 Design Standards Complete Environmental Commission Meets Lake Elmo Demonstration Project Complete EDA Appointed Comp Plan / Zoning Old Village EDA Scoping / Plan of Work Meeting September 2012 Building Official Hired Fire Truck Specs Complete Fall Festival D=Delayed from 2nd Quarter July 3rd July 5th July 10th July 15" July 17th July 17th July 17th July 17th July 23rd July 30th August 1st August 7th August 14th August 17th August 17th August 17th August 19th August 20th August 21st August 27th August 28th g tg September 4th September 7th September 7th and 8th CITY OF LAKE ELMO LAKE ELMO, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2011 ABDO EICK & RS I D c l'uldic ,,Icontiftunis ant,: 5201 Lilo] Avcmw Suit.: 2511 Fdina, NIN 55416 Management, Honorable Mayor and City Council City of Lake Elmo, Minnesota June 25, 2012 We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota (the City), for the year ended December 31, 20 II. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing on our audit. We have communicated such information in our letter to you dated November 21, 2011. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control over financial reporting. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify* all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses and therefore, there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not he prevented, or detected and corrected on a timely basis. We consider the deficiency described in the following page as finding 2011-1 to be a material weakness in internal control over financial reporting. 952,83:i,909(1 • F, 952,83.5.3261 ‘1'11W*;10f11(7113:,..l.,111111 City of Lake Elmo June 25, 2012 Page 2 2011-1 Material audit adjustments Condition: During our audit, adjustments were needed to correct the year-end trial balance, which include: Criteria: Cause: Effect: Receipts collected from utility bills were miscoded in the accounting software to Water and should have identified for Storm Sewer. The General fund received a contribution from Washington County for any and all future costs to provide snow and ice removal services and other maintenance for Demontreville Trail/County Road 13B until 11/01/2013. The financial statements are the responsibility of the City's management. Additionally, finds are segregated for the purpose of carrying on specific activities or objectives under special regulations, restrictions or limitations. The City has not prepared a year-end trial balance reflecting all necessary accounting entries. Specifically, Receipts are tracked on an excel spreadsheet as collected and then entered into the accounting system monthly. It appears that certain receipts collected from Storm Sewer charges were not properly classified. Also, there is no formal reconciliation done by the City to ensure that what has been billed is properly recorded as revenue in the appropriate fund in the accounting system. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. The donation has not met these requirements and needed to be adjusted to deferred revenue. This indicates that it would he likely that a misstatement may occur and not be detected by the City's system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that management review and approve each adjustment, obtain an understanding of why each was necessary and modify current procedures to ensure that future corrections are minimized. Further, we recotnmend reconciliation be completed, quarterly at a minimum, that identifies any discrepancy between utility billings charged and collected from the billing software to the revenue recorded in the accounting system. Management response: The management team will review each journal entry in an effort to better understand the reason the modification was necessary in an effort to limit future corrections. Although these adjustments were minor compared to total utility collections and total fund balance, management agrees that additional reconciling needs to be done throughout the year to allow for timely corrections. Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of Minnesota statutes. However, the objective of our tests was not to provide an opinion on compliance with such provisions. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. We noted no instances of noncompliance with Minnesota statutes. 952.835.9090 • F\ 952.835.3261 \ .itC11111):1,::,1,11111 City of Lake Elmo June 25, 2012 Page 3 Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The requirements of GASB statements No. 54 were adopted for the year ended December 31, 2011. The application of existing policies was not changed during the year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of thc financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were depreciation on capital assets, other postemployment benefits payable and the allocation of payroll expenses. • Management's estimate of depreciation is based on the estimated useful lives of capital assets. Depreciation is calculated using the straight-line method. Management's estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active einployees, life expectancy, turnover, and healthcare cost trend rate. Allocations of gross wages and payroll benefits are approved by Council within the City's budget and are derived from each employee's estimated time to be spent servicing the respective functions of the City. We evaluated the key factors and assumptions used to develop these accounting estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and conununicate them to the appropriate level of management. Management has corrected all such misstatements. We proposed two journal entries that we consider to be audit entries or corrections of management decisions. They related to the situations previously discussed in finding 2011-1. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 25, 2012. 952.835,0090 • Ti2,835.3261 City of Lake Elmo June 25. 2012 Page 4 Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants, Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other items for improvement include: Utility billing adjustments Condition: Cause: During analysis of revenues, we noted various adjustments recorded to the City's utility billing system in 2011. Roughly $44,300 was from delinquent bills certified to the County for collection, and approximately $56,700 was identified as necessary adjustments to correct other mechanical errors (ex. meter malfunction, software error from calculating usage, correction of estimated usage, etc.), including one adjustment of nearly $21,500 to a single commercial utility customer. This one adjustment was a result of a new tier structure approved by the City Council for hotel/motel businesses in the summer of 2011 retroactive to the implementation of the tiered structure billing for this client. Remaining net adjustments totaled approximately $24,000, which were identified as regular minor adjustments by staff. There does not appear to be a formal documented policy or procedure regarding how these adjustments are approved. Internal controls should include standardized procedures on how adjustments are made as well as a process to catch these errors prior to the bills being sent. The primary cause of these adjustments is billing system software limitations. The billing system requires global updates and processing. As a result, even though many conections are identified prior to publishing the bills, they cannot be processed systematically in the edit process in the system. Effect: As evident in the amount of adjustments made in 2011, the City is exposed to the risk of billing error. Also, significant time has been spent by staff to identify and correct these errors. Recominendation: We recommend a documented procedures policy be adopted to ensure proper monitoring is in place. This has become more important as the City's utility function continues to grow and evolve, A few procedure to consider would be I) setting a dollar limit of adjustments needing prior approval from the Finance Director, City Administrator, or even Council prior to being entered into the system, 2) having either the Finance Director or City administrator formally approve a monthly report of billing adjustments, and 3) continue to review billing register summaries, documenting reasonableness compared to previous register summaries prior to mailing the billing statements. Management response: Management acknowledges that utility billing errors occur and are corrected via billing adjustments. Staff will work on continuing to improve internal controls to minimize these types of errors before they occur where possible. A formal documented policy needs to be implemented related to the types of adjustments and the approval necessary prior to processing those adjustments. 952.835.9090 • Fax 952.835.3261 wo.wottemopaA.cion Collection of delinquent utility bills Condition: City of Lake Elmo June 25, 2012 Page 5 At year-end, the City has significant delinquent balances due from customers beyond the current fourth quarter billing. For the Water, Sewer, and Storm Sewer funds, the outstanding balance at 2011 was approximately $79,000, $26,000, and $63,000, respectively. Of these balances, over $105,000 relates to balances that were more than 90 days old. Although the City has the ability to certify' delinquent utility bills to the County for collection with special assessments, several accounts could not be assessed due to pending appeals. Criteria: From an operational standpoint, rates are established to cover operating expenses as well as debt requirements and anticipated capital purchases. Ultimately, it is Council's responsibility to manage the ongoing activities of each of the funds, including monitoring that cash levels will meet future operating, debt, and capital needs. Cause: This appears to be primarily a result of accounts that are under appeal, not being renewed, or not being resolved. Effect This has required the City to use a significant amount of cash reserves to cover operating expenses within the Water, Sewer, and Storm Sewer funds for an extended period of time, Recommendation: It is important that Council be aware of the receivable balance outstanding as well as be reminded of the importance to monitor cash within each fund of the City. We recommend a documented procedures policy be adopted to ensure proper monitoring is in place, including setting an appeal process/policy to address collection or adjustment of account balances, particularly those greater than 90 days past due, in a timely manner. This has become more important as the City's utility function continues to grow and evolve. Management response: Staff will work on internal controls to reduce the amount of delinquent balances carried by the City. In particular, Management is in the process of submitting a Surface Water Utility Fee Appeal Process / Credit Policy that will address some of the items identified above, as well as balances outstanding due to hardships. 932,835.9000 • Els. 952.835.326 I WA.Lik.'111,11.11.7",e(11111 City of Lake Elrno June 25, 2012 Page 6 Financial Position and Results of Operations Our principal observations and recommendations are summarized below. These recommendations resulted from our observations made in connection with our audit of the City's financial statements for the year ended December 31, 2011. General Fund The General fund is used to account for resources traditionally associated with government, which are not required legally or by sound principal management to be accounted for in another fund, The General fund balance increased $227,759 from 2010. The fund balance of S2,913,920 is 100 percent of the 2012 budgeted expenditures. We recommend the fund balance be maintained at a level sufficient to fund operations until the major revenue sources are received in June. We feel a reserve of approximately 50 percent of planned expenditures and transfers out is adequate to meet working capital and small emergency needs. Considering the General fund has advanced monies to other funds, the unassigned fund balance of S1,707,711 is a better measure of funds available to meet the needs of the City. This amount is 59 percent of the 2012 budgeted expenditures. In addition, the City has formally adopted a fund balance policy for the General fund to maintain a minimum unassigned fund balance of 50 percent of the following year's budgeted expenditures for cash -flow timing needs. The City's ending fund balance is above this target level from the policy. The purposes and benefits of a strong fund balance are as follows: Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the General fund expenditures until these revenue sources are received. • The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid and property tax credit formulas. An adequate fund balance will provide a temporary buffer against those aid adjustments and levy limits. • Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay, replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. • A strong fund balance will assist the City in maintaining, improving or obtaining its bond rating. The result will be better interest rates in future bond sales. 97)2.C35.9090 • to 952.835.3261 w.aenvi lari.C4,111 f\table oummuhzin2 the General fund balance inrelation tubudget expenditures aodtruns6moottbUovs: Tnnd Unassigned Gcnun| Fund Balance Fund Balance B udget Fund Year December 3\ Dccemhcr3l '/ear Budget 2007 S 2.254,950 S 1,251,127 2008 3 2^932,718 2008 2,410,841 1.395,088 2009 3,241.795 2009 2.435,810 1/403.240 20/0 2.849,011 2018 2,686]61 1.617.211 2011 2'919,223 2011 2,913,920 7,707711 2012 2,900/06 $3j0U,000 $]J)00,000 $2,500,000 $2,000,000 $1,500,000 - $l/3mJ,0OV \50O,0O0 S- Fund Balance as a Percent of Next Vears Budget SZ,93Z7l8 _ .1;3`241,795 `$2,849,011 ` 740/'o 850/r, �11 2009 20|0 Percent of Total Fund Balance to Budget 77 0,4 74 85 92 100 S2-9l9,223 l0QY City ofLake £|mu June 25.20|2 Percent of Unassigned Fund Balance to Budget 43 % 43 4; 55 59 2011 2012 ^~�~~TuudFund Balance ~-L"Dous ignedFundBalancc ' Bud�u We have compiled a peer group average derived from inforinatioii available on the website of the Office of the State Auditor for Cities vfthe 4U`class which have populations of2,500']O,0O8.}o2009and 20|0.the u,cna&cGeneral fund balance uxo percentage ofexpenditures was 63 percent and 67 percent. respectively, Based on comparison to the peer ,roups, the City's General fund balance isabove average, +ozosmnm ` a.eu/o.,32(,' A summary of the 2011 operations is as follows: Final Budget Actual City of Lake Elmo June 25, 2012 Page 8 Variance with Final Budget Revenues S 2,919,223 $ 3,062,572 $ 143,349 Expenditures 2,737,223 2,604,308 132,915 Excess of revenues over expenditures 182,000 Other financing uses Transfers out 458,264 276,264 (182,000) (230,505) (48,505) Net change in fund balance 227,759 227,759 Fund balances, January 1 2,686,161 2,686,161 Fund balances, December 31 $ 2,686,161 $ 2,913,920 $ 227,759 The City did not amend the General fund budget during the year. Actual operations of the fund provided an increase of $227,759. Some of the line items with significant variances from the final budget are highlighted below: • Revenues were $143,349 over budget during 2011. The main factor of this positive variance relates to licenses and permits, which were over budget by $62,459. • The next largest positive revenue variance occurred within intergovernmental revenues for S40,277. • Expenditures were $132,915 under budget in 2011. Each of the public safety, public works, and culture and recreation functions were under budget by $73,689, $53,810, and $50,195, respectively. • The only expenditure variance over budget was in general government totaling $44,779. Expenditures relating to accounting and auditing ($18,472) and legal fees ($35,081) are the main reasons for the variance. 952,835.9090 • FIN 952.635.3261 wtvw.a('Torp:17,,e1)111 City of Lake Elmo June 25, 2012 Page 9 A more detailed comparison of General fund revenues with the prior years is as follows: Percent of Per Source 2009 2010 2011 Total Capita Taxes $ 2,309,821 S 2,409,509 $ 2,486,117 81.2 % 5 308 Licenses and permits 225,166 261,450 230,419 7.5 29 Intergovernmental 165,708 155,293 172,750 5.6 21 Charges for services 11,433 11,616 14,691 0.5 2 Fines and forfeitures 54,052 68,897 63,819 2.1 8 Investment earnings 72,715 59,711 59,413 1.9 7 Miscellaneous 50,327 25,333 35,363 1.2 4 Total revenues $ 2.889,222 $ 2,991,809 $ 3,062,572 100.0 % 379 The revenues summarized above are presented graphically as follows: $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 MenKinAVNN 2009 2010 2011 Taxes --El—Licenses and permits t erom al - 0 (her 959.8:i:5.9090 • Fd, 952.835.3261 k,%00111,1):1,;.coni A more detailed comparison of General fund expenditures and transfers with the prior years is as follows: Program City of Lake Llmo June 25, 2012 Page 10 Peer Group Percent of Per Per 2009 2010 2011 Total Capita Capita General government 929,960 $ 921,590 S 1,016,898 35.9 % 126 123 Public safety 988,082 1,064,176 996,733 35.2 124 204 Public works 430,832 473,293 447,629 15.8 55 108 Culture and recreation 165,644 155,549 143,048 5.0 18 47 Transfers out 349,735 126,850 230,505 8.1 29 Total expenditures and transfers S 2,864,253 $ 2,741,458 $ 2.834.813 100.0 % 482 The above chart compares the amount the City spends per capita, in comparison to a peer group. We have compiled peer group average fund balance information from approximately 120 fourth class cities (populations of 2,500 to 10,000). The peer group average is derived from information available on the website of the Office of the State Auditor. The expenditures and transfers summarized above are presented graphically as follows: S1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 2009 -----General government 2010 ,-,71 —Public safety Public ‘vorks 2011 Oth er C62,835,0(00 • KIN 952.8332(11 W VV.ii4AXIi`paq,f11/11 City of Lake Elmo June 25, 2012 Page 11 Debt Service Funds Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than enterprise fund debt). Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. Capitalized interest portion of bond proceeds - After the sale of bonds, the project may not produce revenue (tax increments or special assessments) for a period ofone to two years. Bonds are issued with this timing difference considered in the form of capitalized interest. • Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or Federal grants • Transfers from other funds Debt Description December 31, 2011 Final Total Total Bonds Maturity Cash Assets Outstanding Date 313 2004 G.O. CIP Bond $ 3,209,184 $ 3,209,184 $ 3,205,000 2013 314 2006 G.O. Equipment Certificates of Indebtness 17,797 17,797 196,000 2015 315 2009A G.O. Refunding Bond 340,000 340,000 2016 3 I 6 2009B G.O. Improvement Bond 164,600 226,729 545,000 2020 317 2010A G.O. Improvement Bond 142,162 228,662 710,000 2021 318 2010B G.O. OP Crossover Refunding Bond - 1,970,000 2025 319 2011A G.O. Improvement Bond 878 878 845,000 2022 Total All Debt Service Funds $ 3.534.621 $ 4,023,250 $ 7,811,000 The 2004 G.O. CIP Bond has been refunded by the 2010B G.O. CIP Crossover Refunding Bond. The cash with fiscal agent balance is primarily set aside for the future principal payment of $2,845,000 in 2013. The 2011A G.O. Improvement Bond was issued in 2011 for funding the 2011 street improvements project. 052.1135.9(1W • Pas 052.835.3261 City of Lake Elmo June 25, 2012 Page 12 Special Revenue Funds Special revenue funds receive revenue from specific sources and expenditures are for specific purposes. The following funds, with fund balances included, comprise the Special revenue fund type: Fund Nonmajor Development Fall Festival Library Total Fund Balances December 31, 2011 7,114 (7,483) (369), 2010 15,973 11,351 27,324 Increase (Decrease) (15,973) (4,237) (7,483) $ (27,693) The Development fund was closed at the end of 2011. The Library fund was established in 2011 to account for the operations surrounding the new library. The Fall Festival fund remained stable during 2011. Capital Projects Funds These funds accumulate resources to finance major capital acquisition and construction projects. A recap of each fund and fund balances (deficits) follows: Fund Major Village Project 2011 Street Improvements Nonmajor Park Dedication Infrastructure Reserve Vehicle Acquisition City Facilities Manning Avenue/Highway 36 2010 Street Improvements 2012 Street Improvements South of 10th Street Total Fund Balances (Deficits) December 31, 2011 2010 $ (1,205,398) 184,946 952,641 49,259 353,433 271,085 (6,794) (10,650) (123,429) $ (1,146,241) (41,948) 949,345 44,145 363,012 276,501 (7,701) 39,669 $ 465,093 $ 476,782 Increase (Decrease) (59,157) 226,894 3,296 5,114 (9.579) (5,416) 907 (39,669) (10,650) (123,429) (11,689) As projects are completed the City should transfer the remaining resources to the original funding source or to a permanent reserve fund. As mentioned above, all funds should maintain a balance sufficient to provide for project costs. Each deficit indicates a funding shortfall and all will eventually need to be eliminated whether by issuing bonds, future charges, or by transfers from other funds. Council should monitor the original financing plans. 052.133 5,01190 • Vox 9.52,835:3261 City of Lake Elmo June 25, 2012 Page 13 Internal Service Funds These funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for the funding of equipment replacement for radios, IT, furniture, fixtures, and other equipment. These services predominantly benefit governmental rather than business -type functions. A recap of each fund and net asset balances follows: Fund Net Assets, December 31, increase 2011 2010 (Decrease) Radio Replacement 5 89,748 91,755 (2,007) IT Replacement 67,414 78,639 (11,225) FFE Replacement 158,173 147,960 10,213 Total S 315,335 S 318,354 $ (3,019) These funds accumulate funding primarily from other departments within the City on a cost reimbursement basis, as identified within the City's budget. 2011 activity included transfers of $18,000 from the General fund into these funds for future capital purchases, as well as over 542,000 transferred for the purchase of fire equipment. These transfers were primarily offset with depreciation of approximately $55,000. We recommend the City reevaluate the intended use of these funds, either to establish a plan for continued financing and purchasing with these funds or to close them to other governmental funds. 952M35.9090 • Fa. 932.8370261 W11W.:10/11111:1,11111 City of Lake Elmo June 25, 2012 Page 14 Enterprise Funds The Water Utility, Sewer Utility and Storm Sewer Utilities make up this fund type. Water Utility Fund A three year comparison for the Water Utilities fund follows: 2009 2010 2011 Total Percent Total Percent Total Percent Operating revenues 437,255 100.0 % 517,359 100.0 % 526,979 100.0 % Operating expenses 641,293 146.7 699,745 135.3 647,962 123.0 Operating loss (204,038) (46.7) (182,386) (35.3) (120,983) (23.0) Nonoperating expenses (70,465) (16.1) (142,768) (27.6) (139,054) (26.4) Transfers in - 50,000 9.7 50,000 9.5 Capital contributions 411,553 94.] 265,401 51,3 79,367 15.1 Change in net assets 5 137,050 31.3 % (9,753) (1.9) % (130.670) (24.8) % Cash and temporary investments 553,346 565,407 Bonds payable S 4,715,000 $800,000 $700,000 $600,000 $500,000 $400,000 S300,000 $200,000 $100,000 S- $(100,000) 5(200,000) $ 4,680,000 752,658 $ 4,640,000 2009 2010 2011 4—Operating revenues ^-51111-- Operating expenses Change in net assets Cash and temporary investments The fund incurred an operating loss each of the last three years, however, it is encouraging the loss is now only $120,983 compared to $204,038 in 2009. Currently, net cash from operations are not sufficient to pay the Water fund's debt requirements. The increase in cash of $187,251 from 2010 is due to multiple factors, including: tower rental of $48,555, connection fees of $74,100, a transfer from the General fund of $50,000, and payment of the remaining $56,226 borrowed to the Storm Sewer fund. We recommend the City review rates annually to determine if operating revenues will cover operating costs, debt requirements, and future projects. 5 2 .8 35 .900 0 • F. k 95-2 .835.3 2 1) 1 W111V.00111110:--;.011111 Sewer Utility Fund A three year comparison for the Sewer Utility fund follows: Total City n{Lake Eli -no June 25'28|2 Pogc\5 2009 2010 2011 Percent Total Percent Total Percent 0perutioArevcuueu S 45.146 1O0.8 96 0 4&�08 0OO Y6 $ 53.012 |OO.V Operating expenses 59.243 13l2 61.513 126�8 73.797 1392 Operating loss (14,097) GL2) (13/005) (268) (20785) (392) N000pcnuiug revenues 3.00 6.8 632 }.S 40 0.8 Capital contributions ' 2,400 4.9 1,785 3.4 Change innet assets $ (17,0114) (24/)Y6 $ (9�973) (20�6) Y6 $ (l8�j82) (35.0) Y6 Cash and temporary investments S8K0OO $60,000 / S40,V0O S2000V perating expenses . 2010 Change in mr/,o,cu ' � x 20|| Cash and temporary investments The Sewer fund showed ail upoodn�loss and udocoascincash and �mpn,w�iovcmouuseach ofthe |o�d`mryeus.The Cityneeds to ensure their current rate structure is sufficient to cover operations of the fund as well as any future project costs. v�/oamo ` u,*uMozw/ City nfLake £|mm June Zi2O]2 Page 16 Storm Sewer Utility A three year comparison for the Storm Sewer Utility fund follows: 2009 2010 2011 Percent Total Percent Total Percent Operating revenues $ 149,347 100,0 Y6 185,425 100.0 Y6 $ 235252 100.0 Y6 Operating expenses 140'365 94.0 151,384 81.6 142.517 60.6 Operating income 8,982 6�O 34,041 18.4 92,735 �9.4 Nnnnpen6ngroenucs (expenses) (3,188) (2]) 32.630 17.6 17.468 7A Transfers in 100'080 67.0 - ' Capital contributions 336'624 225.4 158,546 85.5 4.370 19 Cash and temporary investments Due to other funds $5007000 $450,000 | S400,000 ' $350,000 S3O0,000 $250,000 QZO0.VUV s|jO/]VO $100,000 $50.000 80,154 $ 56226 � � 3,317 .� 2009 2010 2011 --",—Operudngrueuvo~D�Qp,oungexpenses `'.[huooriunet assets ~-�~C�hand tempu,ai?in,cumons Operating income increased primxh|ymo/eyukoyioc,muoiog the billing rate. The change ionet assets was lower than the prior year due wfewer capital contributions. After several years of borrowing cash, the ending cash balance in the fund is a positive $3,317 for 2011, The City will need to continue to review operations of the fund to ensure the future of the fund stays positive. 1"1"�)52/8:m,/20 1 City of Lake Elmo June 25, 2012 Page 17 Ratio Analysis The following captures a few ratios from the City's financial statements that give some additional information for trend and peer group analysis. The peer group average is derived from information available on the website of the Office of the State Auditor. Different peer group averages are used for Cities of the 4th class (population 2,500 - 10,000), The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government -wide level. A combination of liquidity (ability to pay its most immediate obligations), solvency (ability to pay its long-ternt obligations), funding (comparison of financial amounts and economic indicators to measure changes in financial capacity over time) and common -size (comparison of financial data with other cities regardless of size) ratios are shown below, Ratio Calculation Source 2008 2009 2010 2011 Debt to assets Total liabilities/total assets Government -wide Debt service coverage Net cash provided by operation Enterprise funds enterprise fund debt payments Debt per capita Bonded debt/population Government -wide S . 5 55 8, I .543 s Taxes per capita Tax revenues/population Government -wide S 3(0 32( s 3421 34 Current expenditures per capita Governmental fund current Governmental funds' .', I (:, s .324i `8 .5 I t 55.316 expenditures/population ,.' S ,.., Capital expenditures per capita Governmental fund capital Governmental funds S 11655 ',.., 55 l 45 S I 38 outlay/population ,S' .3,2S' S 31/1 Capital assets % left to Net capital assets/ Government -wide 8.3,2"8 8 i 48,,, 7 4448 depreciate - Governmental gross capital assets (`)„, 3.''';', Y,,r Capital assets % left to Net capital assets) Government -wide .,',9,o'-, 51,1'-', 84,9 „ ;'r..,' „88 8 depreciate - Business -type gross capital assets 331 1 -V, (`.. is!, P.,ts (scss; l'tfi i!,' 97)2.6)3.9090 • Fax 9,52.8:',5.3261 11, w.aenic pa -A A.01 City of Lake Elmo June 25, 2012 Page 18 Debt -to -Assets Leverage Ratio (Solvency Ratio) The debt -to -assets leverage ratio is a comparison of a City's total liabilities to its total assets or the percentage of total assets that are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long-term obligations (Le, a ratio of 50 percent would indicate half of the assets are financed with outstanding debt). Debt Service Coverage Ratio (Solvency Ratio) The debt coverage ratio is a comparison of cash generated by operations to total debt service payments (principal and interest) of enterprise funds. This ratio indicates if there are sufficient cash flows from operations to meet debt service obligations. Except in cases where other nonoperating revenues (i.e, taxes, assessments, transfers from other funds, etc.) are used to fund debt service payments, an acceptable ratio would be above 100 percent. Bonded Debt per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total bonded debt by the population of the City and represents the amount of bonded debt obligation for each citizen of the City at the end of the year. The higher the amount, the more resources are needed in the future to retire these obligations through taxes, assessments or user fees. Taxes per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total tax revenues by the population of the City and represents the amount of taxes for each citizen of the City for the year. The higher this amount is, the more reliant the City is on taxes to fund its operations. Current Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total current governmental expenditures by the population of the City and represents the amount of governmental expenditures for each citizen of the City during the year. Since this is generally based on ongoing expenditures, we would expect consistent annual per capita results. Capital Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total governmental capital outlay expenditures by the population of the City and represents the amount of capital expenditures for each citizen of the City during the year. Since projects are not always recurring, the per capita amount will fluctuate from year to year. Capital Assets Percentage (Common -size Ratio) This percentage represents the percent of governmental or business -type capital assets that are left to be depreciated. The lower this percentage, the older the City's capital assets are and may need major repairs or replacements in the near future. A higher percentage may indicate newer assets being constructed or purchased and may coincide with higher debt ratios or bonded debt per capita. 952.835,909(1 • F;I. 952.335.3261 ,A.trenicims.g,,M1 City of Lake Elmo June 25, 2012 Page 19 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: GASB Statement No. 60 - Accounting and Financial Reporting for Service Concession Arrangements Summary The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide services through the use of infrastructure or another public asset (a "facility") in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. This Statement also provides guidance for governments that are operators in a service concession arrangement. This Statement requires disclosures about a service concession arrangement including a general description of the arrangement and information about the associated assets, liabilities, and deferred inflows, the rights granted and retained, and guarantees and commitments. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011, The provisions of this Statement generally are required to be applied retroactively for all periods presented. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement improve financial reporting by establishing recognition, measurement, and disclosure requirements for SCAs for both transferors and governmental operators, requiring governments to account for and report SCAs in the same mariner, which improves the comparability of financial statements. GASB Statement No. 61 - The Financial Reporting Entity: Omnibus an Amendment of GASB Statements No. 14 and No. 34 Summary The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No, 14 and the related financial reporting requirements of Statement No. 34, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements, This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also amends the criteria for reporting component units as if they were part of the primary government (that is, blending) in certain circumstances. This Statement clarifies the reporting of equity interests in legally separate organizations as well. It requires a primary government to report its equity interest in a component unit as an asset. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement result in financial reporting entity financial statements being more relevant by improving guidance for including, presenting, and disclosing information about component units and equity interest transactions of a financial reporting entity, '.62M35.9090 • Fa \ c/52Z35,.3261 %,:w%vaeraPpa-,.coin City of Lake Elmo June 25. 2012 Page 20 Future Accounting Standard Changes - Continued GASS Statement No. 62 - Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30. 1989 FASB and AICPA PrOf701111CCITICIUS Summary The objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1, Financial Accounting Standards Board (FASB) Statements and Interpretations. 2. Accounting Principles Board Opinions, 3, Accounting Research Bulletins of the American Institute of Certified Public Accountants' (AICPA) Committee on Accounting Procedure. This Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. Earlier application is encouraged. The provisions of this Statement generally- are required to be applied retroactively for all periods presented. HOW the Changes in This Statement Will Improve Financial Reporting The requirements in this Statement will improve financial reporting by contributing to the GASB's efforts to codify all sources of generally accepted accounting principles for state and local governments so that they derive from a single source. GASB Statement No. 63 - Financial Reporting of Deferred Outflows ofResources, Deferred Inflows of Resources, and Net Position Summary This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. 952.835.91190 • F.L,. 952.835,3261 %‘- ‘v.ao ric! pas.com City of Lake Elmo June 25, 2012 Page 21 Future Accounting Standard Changes - Continued GASB Statement No. 64 - Derivative Instruments: Application of Hedge Accounting Termination Provisions - an Amendment of GASB Statement No. 53 Summary The objective of this Statement is to clarify whether an effective hedging relationship continues after the replacement of swap counterparty or a swap counterparty's credit support provider. This Statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2011. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement enhance comparability and improve financial reporting by clarifying the circumstances in which hedge accounting should continue when a swap counterparty, or swap counterparty's credit support provider, is replaced. This report is intended solely for the information and use of City Council, management, and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff June 25, 2012 Minneapolis, Minnesota . ABDO, EICK & MEYERS, LLP Certified Public Accountants 952.J335,9090 • Fax 952.035.3261 wv.w.actur.pai;.*ffin