HomeMy WebLinkAboutAgenda Packets - 2014/08/11CITY OF MOUNDS VIEW
CITY COUNCIL MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, August 11, 2014
7:00 p.m.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller
4. APPROVAL OF AGENDA
5. PUBLIC INPUT:
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full
name and address for the minutes. Also, please limit your comments to three minutes.
6. SPECIAL ORDER OF BUSINESS
A. Proclamation – Constitution Week (to be read out loud)
7. COUNCIL BUSINESS
A. Review Developer’s Agreement for Longview Estates
B. First Reading of Ordinance 890, Amending Section 701.04, subd. 8a of the Mounds
View City Code, Revising Kennel Licensing Requirements
C. Resolution 8288 Calling a Public Hearing on the Issuance of a Revenue Note and
Providing Preliminary Approval to the Proposed Issuance of the Revenue Note
D. Resolution 8289 Approving a Construction Contract with Allied Blacktop Company
for the 2014 Trails & Parking Lot Pavement Maintenance Project.
8. CONSENT AGENDA
A. Resolution 8290, Approving Blake Downes to the Streets and Utilities Committee
B. Schedule a Public Hearing for Monday, September 8, 2014, at 7pm, to Approve the
2015 Fee Schedule
9. JUST AND CORRECT CLAIMS
10. APPROVAL OF MINUTES - None
11. REPORTS
A. Reports of Mayor and Council
B. Reports of Staff
1. Finance Quarterly Report
C. Reports of City Attorney
12. Next Council Work Session: TUESDAY, September 2, 2014, at 7pm
Next Council Meeting: Monday, August 25, 2014, at 7pm
13. ADJOURNMENT
CITY OF MOUNDS VIEW
CITY COUNCIL MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, August 11, 2014
7:00 p.m.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller
4. APPROVAL OF AGENDA
5. PUBLIC INPUT:
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full
name and address for the minutes. Also, please limit your comments to three minutes.
6. SPECIAL ORDER OF BUSINESS
A. Proclamation – Constitution Week (to be read out loud)
7. COUNCIL BUSINESS
A. Review Developer’s Agreement for Longview Estates
B. First Reading of Ordinance 890, Amending Section 701.04, subd. 8a of the Mounds
View City Code, Revising Kennel Licensing Requirements
C. Resolution 8288 Calling a Public Hearing on the Issuance of a Revenue Note and
Providing Preliminary Approval to the Proposed Issuance of the Revenue Note
D. Resolution 8289 Approving a Construction Contract with Allied Blacktop Company
for the 2014 Trails & Parking Lot Pavement Maintenance Project.
8. CONSENT AGENDA
A. Resolution 8290, Approving Blake Downes to the Streets and Utilities Committee
B. Schedule a Public Hearing for Monday, September 8, 2014, at 7pm, to Approve the
2015 Fee Schedule
9. JUST AND CORRECT CLAIMS
10. APPROVAL OF MINUTES - None
11. REPORTS
A. Reports of Mayor and Council
B. Reports of Staff
1. Finance Quarterly Report
C. Reports of City Attorney
12. Next Council Work Session: TUESDAY, September 2, 2014, at 7pm
Next Council Meeting: Monday, August 25, 2014, at 7pm
13. ADJOURNMENT
CITY OF MOUNDS VIEW
OFFICE OF THE MAYOR
~ P R O C L A M A T I O N ~
CONSTITUTION WEEK
WHEREAS, September 17, 2014, marks the two hundred twenty-seventh anniversary of the
drafting of the Constitution of the United States of America by the Constitutional Convention;
and,
WHEREAS, it is fitting and proper to accord official recognition to this magnificent
document and its memorable anniversary and to the patriotic celebrations which will
commemorate the occasion; and,
WHEREAS, Public Law 915 guarantees the issuing of a proclamation each year by the
President of the United States of America designating September 17th through September 23rd
as Constitution Week.
NOW, THEREFORE, it is with great pleasure and honor that I, Joe Flaherty, Mayor of
the City of Mounds View, Minnesota, do hereby proclaim the week of September 17th through
September 23rd as:
“CONSTITUTION WEEK”
and ask our citizens to reaffirm the ideals of the Framers of the constitution had in 1787 by
vigilantly protecting the freedoms guaranteed to us through the guardian of our liberties,
remembering that lost rights may never be regained.
Given under my hand and Seal of the City of Mounds View, this 11th day of August, 2014.
________________________________________
Joe Flaherty, Mayor
(seal)
Item No: 7A
Meeting Date: August 11, 2014
Type of Business: Council Business
Administrator Review: ________
City of Mounds View Staff Report
To Honorable Mayor and City Council
From: Heidi Heller, Planning Associate
Item Title/Subject: Discussion to Amend the Developer’s Agreement for
Longview Estates, Developed by EICHI, Inc.,
5173 Longview Drive; Planning Case MA2014-001
Introduction:
On July 28, 2014, the City Council approved a Developer’s Agreement with Marty Harstad,
representing Eichi, Inc. for the 10-lot subdivision of Longview Estates. This 7.14 acre parcel is
on the west side of Longview Drive between County Road H2 and Woodale Drive. Mr. Harstad
is asking that the Council lower the financial guarantee amounts stated in the agreement.
Discussion:
Mr. Harstad will be doing the land preparation and soil correction for the 10 building sites. As
with all developments, the City requires a “Developer’s Agreement” which has specific
requirements and financial guarantees for each development that is occurring. Since the land
preparation will involve extensive truck traffic and is occurring in a neighborhood with newly
constructed city streets, an additional restoration security deposit was added in the developer’s
agreement for any street repair needed (Article 2.03c). Staff did not know what the haul route
would be prior to drafting the agreement, so the large amount of $75,000 was put in to the
agreement to cover street repairs on the entire street area where truck traffic could be. Staff
has since had a meeting with the contractor who has designated a specific route for the truck
traffic which is the shortest route possible on the new streets. City Staff is agreeable to
lowering the restoration security deposit amount to $20,000.
Mr. Harstad has also asked that the financial guarantee amount in Article 2.07 be lowered from
$20,000. The City requires this financial guarantee in case of default or abandonment of the
project and the City then needing to finish the work or secure the site. Since only dirt work will
occur, and Mr. Harstad has already provided a $25,000 surety to Rice Creek Watershed District
as part of their permit, City Staff is agreeable to lowering the financial guarantee to $5,000.
Recommendation:
Discuss amending the financial guarantee amounts in the Developer’s Agreement with Mr.
Harstad. If the City Council agrees to amend the financial guarantee amounts, a “Motion to
Amend” can be made rather than acting on a resolution.
Respectfully Submitted By,
Heidi Heller
Planning Associate
Attachments:
1. Developer’s Agreement
DEVELOPERS AGREEMENT
by and between the
CITY OF MOUNDS VIEW, a Minnesota municipal corporation,
and
EICHI, INC.
a Minnesota Business Corporation
This document drafted by:
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
DEVELOPMENT AGREEMENT
THIS AGREEMENT is made this _______ day of ___________________, 2014, by and
between the CITY OF MOUNDS VIEW, a Minnesota municipal corporation (the “City”), and
EICHI, INC., a Minnesota Business Corporation, (the “Developer”).
Recitals
A. The Developer is the fee owner of certain real estate located in Ramsey County,
Minnesota, legally described as
Lot 4, Block 1, Mueller Addition
PIN 07-30-23-42-0066
(hereinafter referred to as the “Property”).
B. The Developer shall construct on the Property improvements consistent with the final
construction plans dated ______________________, 2014.
C. The Developer has requested that the City approve a major subdivision for the
property.
D. As a prerequisite to the approval of the subdivision, the City Council requires the
Developer to agree to the construction of certain improvements pursuant to this Agreement for the
orderly development of the Property.
E. The Developer is financially responsible for the construction costs of site preparation,
earthwork, stormwater facilities, and other miscellaneous and related work as required by City
ordinance and described in Article 2 referred to as the “Improvements”.
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Agreement
In consideration of each party’s promises as set forth in this Agreement, it is mutually agreed
as follows:
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ARTICLE ONE
REPRESENTATIONS AND WARRANTIES
1.01. City Representations and Warranties. The City makes the following representations as the
basis for the undertakings on its part contained herein:
A. The City is a municipal corporation under the laws of Minnesota.
B. The City has the right, power and authority to execute, deliver and perform its
obligations under this Agreement. The City assures the Developer that the individuals who execute
this Agreement on behalf of the City are duly authorized to sign the same on behalf of the City and to
bind the City thereto.
1.02. Developer Representations and Warranties. The Developer makes the following
representations as the basis for the undertakings on its part contained herein:
A. The Developer is EICHI, INC., a Minnesota Business Corporation.
B. The Developer has the right, power and authority to execute, deliver and perform its
obligations under this Agreement. The Developer assures the City that the individuals who execute
this Agreement on behalf of the Developer are duly authorized to sign on behalf of the Developer
and to bind the Developer thereto.
C. The Developer is not in default under any lease, contract, or agreement to which it is a
party or by which it is bound which would affect its performance under this Agreement. The
Developer is not a party to or bound by any mortgage, lien, lease, agreement, instrument, order,
judgment, or decree which would prohibit the execution or performance of this Agreement by the
Developer or prohibit any of the transactions provided for in this Agreement.
D. The Developer has complied with and will continue to comply with all applicable
federal, state and local statutes, laws, ordinances and regulations including, without limitation, any
permits, licenses and applicable zoning, environmental, or other laws, ordinances, or regulations
affecting the Property or the Improvements. The Developer is not aware of any pending or
threatened claim of any such violation. Without limitation of the foregoing, the Developer expressly
acknowledges and agrees that it has and shall at all times comply with each and every provision of
the City’s subdivision, zoning, and other related municipal code regulations.
E. There is no suit, action, arbitration or legal, administrative or other proceeding or
governmental investigation pending or threatened against or affecting the Developer or Property.
The Developer is not in default with respect to any order, writ, injunction or decree of any federal,
state, local or foreign court, department, agency or instrumentality.
F. None of the representations and warranties made by the Developer or made in any
exhibit hereto or memorandum or writing furnished or to be furnished by the Developer or on its
behalf contains or will contain any untrue statement of material fact or omits any material fact, the
omission of which would be misleading.
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G. The Developer has sufficient funds or has obtained a commitment for financing in an
amount adequate to finance construction of the Improvements.
1.03 Incorporation of Recitals and Exhibits. The Recitals set forth in the preamble to this
Agreement and the Exhibits attached to this Agreement are incorporated into this Agreement as if
fully set forth herein.
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ARTICLE TWO
CONSTRUCTION OF IMPROVEMENTS
2.01. Agreement to Construct Improvements. The Developer agrees to the construction of the
Improvements required by City Ordinance for development of the Property. The Improvements are
more fully described in this Article and on the construction plans, preliminary plat, and specifications
approved by the City (the “Plans”). The Developer or its agent must file a final copy of the Plans
with the City before starting the construction of the Improvements. All labor, materials, and work
performed by the Developer or its contractor for construction of the Improvements will be performed
and completed to industry standards and in strict conformance with the Plans. Any deviation from
the Plans must be approved in writing by the City. Construction for the Improvements shall be
under and subject to the inspection and approval of the City and, where appropriate, any other
governmental agency having jurisdiction.
2.02 Designation of Improvements. Improvements to be constructed by the Developer or its agents
at Developer’s expense as generally described below and detailed on the Plans are hereinafter
referred to as “Improvements”.
A. Public Improvements: The following Improvements to be constructed by the
Developer or its agents at Developer’s expense will be owned and maintained by the City after
development is completed and work is accepted.
1. Stormwater conveyance, ponding, and treatment systems involving demolition,
modification, and addition of storm sewer piping and drainage structures; excavation and
embankment of stormwater pond and turf access road; and modifications to existing
infiltration basins in boulevard of Longview Drive.
2. Concrete curb and gutter on Longview Drive involving removal and replacement
with similar curb and gutter design with appropriate curb cuts to serve planned future single-
family dwellings in the development. Patch street to Public Works Standards.
3. Outlot A as shown on the Plans involving removal of dead or dying trees, shrubs,
and other unsightly vegetation.
B. Private Improvements: The following Improvements to be constructed by the
Developer or its agents at Developer’s expense will be owned and maintained by private property
owners after development is completed and work is accepted.
1. Site preparation for construction of ten “pad-ready” single-family dwellings
involving grading, drainage, earthwork and soils correction, and turf establishment. Upon
completion of site preparation activities, dwelling sites will not require any further soils
correction to meet intended foundation bearing capacities for construction of dwellings.
2. Boulder retaining wall behind dwelling pads to delineate wetland limits.
Retaining wall is proposed to be approximately two feet in height and continuous through
lots.
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3. Concrete driveway aprons meeting Public Works Standards at each curb cut
serving planned future single-family dwellings in the development.
4. Iron monuments shall be placed under the direction of a Professional Land
Surveyor licensed by the State of Minnesota at all lot and block corners and at all other angle
points on boundary lines. Monuments shall be installed after all major grading is complete
and marked with a fence post in order to preserve the lot markers for use by future property
owners.
5. Adjust water service curb stops flush to final grade at property line and inspect to
ensure proper operation of valve. Remove any debris from valve box that would interfere
with valve operation.
6. Sanitary sewer service pipes shall be exposed at property line and inspected to
sewer trunk main by a video recording device. Roots and debris shall be removed and pipe
leaks and other deficiencies repaired. Prior to repairing pipe leaks and deficiencies, notify
the Director of Public Works of means and methods to repair pipes. Reinspect and video
record any repaired pipes and provide Director of Public Works with electronic copies of pre-
and post-repair video inspections. Mark sanitary sewer services at property line with 2x4
pressure treated lumber and backfill.
7. Remove all abandoned structures, dead and dying trees, unsightly and invasive
vegetation, and all other debris from the development site.
C. General Requirements for Constructing Improvements: The Developer and its agents
at Developer’s expense must meet the following requirements during construction of the
improvements.
1. Install, maintain, and inspect sediment and erosion control devices in accordance
with the Plans, City Standards, and regulatory requirements. Assign qualified person
responsible for overseeing site management of sediment and erosion control during
construction duration. Provide records of inspection and maintenance to City when
requested. Remove all sediment and erosion control devices upon site establishment.
2. All public streets and private driveways shall remain open and unobstructed
during construction duration. Traffic control shall be in-place to warn motorists of any
hazards. Employ measures to protect street pavement and curbing from damage, including
limiting the number of access points from the street to the site. Street pavements and curbs
shall be maintained and free of dirt and debris at the end of each day and prior to significant
rainfall events. Streets shall be swept within 24 hours after notification by City. The City
may perform street sweeping at Developer’s expense in the event that streets are not swept
within this time constraint.
3. Haul routes on public streets shall be designated by the Director of Public
Works. Developer and its agents must comply with these routes. Failure to comply may
result in a stop work order and other enforcement actions.
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4. Before commencing construction of the Improvements, the Developer and its
agents shall participate in a pre-construction meeting with the City to review and resolve any
issues involving the construction of the Improvements. Developer shall submit a
construction schedule, list of contractors, and other contact information including an
emergency contract.
2.03 Permits and Fees. The Developer shall be responsible for securing all necessary approvals and
permits from all appropriate Federal, State, Regional, County, and local jurisdictions before
commencing construction of the Improvements, including full payment of all applicable permit and
development fees. Copies of permits shall be kept on-site at all times during construction operations.
The following permits and fees shall be obtained and paid before commencing construction of the
Improvements:
A. Stormwater Permit - Rice Creek Watershed District: Obtain stormwater permit with
full approval or CAPROC (Conditional Approval Pending Receipt of Changes) prior to applying for
City permits. Provide City with copy of permit approval letter.
B. Land Disturbance Permit – City of Mounds View: Required for grading activities on
the site and sediment and erosion control enforcement. Apply for permit with Public Works
Department and pay applicable fees.
C. Right-of-Way Permit – City of Mounds View: Required for construction activities
in public Rights-of-way, including excavation, obstructions, curb and gutter, and patching streets.
Permit will cover site access from street and use of municipal streets for hauling operations. Apply
for permit with Public Works Department and pay applicable fees. A restoration security deposit for
$75,000 is required for permit issuance to cover restoration costs to public infrastructure during
construction of the Improvements.
D. Park Dedication Fee – City of Mounds View: Required in accordance with City Code
Chapter 1204. The Developer shall submit the required park dedication payment of $12,000 to the
City prior to the City signing the final plat. The Developer further expressly acknowledges and
agrees that the Improvements and all easements and other rights in the Property necessary and related
to the City’s ownership of the Improvements (all of which shall be described in the plat required by
the City’s subdivision regulations), shall inure to the City upon the Developer’s compliance with this
Agreement, acceptance by the City of the Improvements, and approval and recording of a final plat
as set forth in the City’s subdivision regulations.
E. Document Records to Ramsey County: The Developer shall record with Ramsey
County this Agreement, Resolution 8285, and the final plat. The Developer shall provide proof to
the City of such recordation within 10 days of the recording.
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2.04 Easements: Before approval of the final plat, and at anytime determined necessary by the City
therefore, the Developer shall dedicate to the City, at no cost, all temporary easements necessary for
the construction of the Improvements as determined by the City. All such easements required by the
City shall be provided on City easement documents, containing such terms and conditions, as the
City shall determine. All permanent easements necessary for the installation and maintenance of the
Improvements shall be shown on the final plat and be granted to the City upon recordation of said
plat. After recordation of said plat, the Developer shall provide on an amended final plat to the City,
additional easements necessitated by changes to utility or grading design and such easements shall be
granted to the City upon recordation of said plat.
2.05. Time for Developer's Performance: General Provision. The Developer agrees that it will
commence work on the Improvements no later than 30 days after the date of the City issuing the
permits and shall complete the Improvements no later than eighteen (18) months after the date of
permit issuance. In the event of a “phased” construction schedule, each phase shall be subject to its
own timeline based upon the date of issuance of the building permit. The City may, at its discretion,
extend the timeline specified in this Section 2.03 upon receipt of written notice from the Developer
of the existence of causes that will delay the completion of the Improvements if such causes are ones
over which the Developer has no control and which could not have been reasonably foreseen by the
Developer. If the City grants an extension of the date of completion of the Improvements, the
Developer must continue the performance bond required by this Agreement to cover the work during
the extension of time.
2.06. Additional Work or Materials. Construction of the Improvements shall be done by the
Developer. The Improvements shall be constructed at no expense to the City. The Developer shall
not do any work or furnish any materials for which reimbursement is expected from the City, unless
such work is first ordered and reimbursement is approved by the City. Any work or materials that is
done or furnished by the Developer without prior written order is furnished at the Developer’s risk,
cost and expense, and the Developer agrees that it will make no claim for compensation for work or
materials so done or furnished.
2.07. Financial Guarantee. Prior to commencement of construction of the Improvements, the
Developer agrees to furnish the City a performance bond, certified check, certificate of deposit,
irrevocable letter of credit from a bank or cash escrow in the amount of $20,000 to guarantee
construction of the Improvements and satisfaction of this Agreement (the “Financial Guarantee”), as
determined by the Director of Public Works. Upon failure of Developer to perform, the City may
declare the Developer to be in default under this Agreement and, upon failure of the Developer to
cure the default within 30 days of written notice, may demand the Financial Guarantee be paid over
to the City. From the proceeds of the Financial Guarantee, the City shall be reimbursed for any
attorneys’ fees, engineering fees or other technical, administrative or professional assistance, and the
remainder thereof shall be used by the City to complete the Improvements. The Developer shall be
liable to the City in the event that the Financial Guarantee is inadequate to reimburse the City for its
costs and pay for the completion of the Improvements.
The bank and form of Financial Guarantee shall be subject to the approval of the City. The Financial
Guarantee shall be automatically renewable until the City releases the Developer from responsibility.
The Financial Guarantee shall secure compliance with the terms of this Agreement and all
obligations of the Developer under it. The City may draw down on the Financial Guarantee without
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notice if the obligations of the Developer have not been completed as required by this Agreement. In
the event of a default under this Agreement by the Developer, the City shall furnish the Developer
with written notice by certified mail of Developer’s default(s) within thirty (30) days of receiving
notice provided however if the Developer commences to cure within said thirty days, the time to cure
shall be extended for a reasonable time not to exceed 60 days; the City may draw on the Financial
Guarantee provided funds are used to complete the Improvements. With City approval, the Financial
Guarantee may be reduced from time to time as financial obligations are paid and Developer-
installed Improvements completed to the City’s requirements. Upon completion of the Improvements
and passage of any required inspections and final acceptance of the Improvements by the City pursuant
to this Agreement, absent any default of the Developer, the Financial Guarantee may be terminated.
In the event the City does not recover its costs for completing the Improvements under the provisions
of this paragraph, as an additional remedy, the City may, at its option, assess the Property in the
manner provided by Minnesota Statutes, Chapter 429, and Developer hereby consents to the levy of
such special assessments without notice or hearing and waives its rights to appeal such assessments
pursuant to Minnesota Statutes, Section 429.081, provided the amount levied, together with the
funds deposited with the City under this paragraph, does not exceed the expenses actually incurred
by the City in the completion of the Improvements.
2.08. Insurance. The Developer shall purchase, maintain, and furnish proof of liability insurance in
an amount of at least $1,000,000, acceptable to the City, covering any public liability or property
damage by reason of the operation of the Developer's equipment or laborers in connection with the
Improvements. Developer agrees to keep the insurance in force at all times during construction of
the Improvements and until acceptance thereof by the City. The insurance must name the City as an
additional insured on a primary basis and must provide that the insurer will give the City not less
than 30 days written notice prior to cancellation or termination of the insurance policy.
2.09. Unsatisfactory Labor or Material. In the event that the City rejects as defective or unsuitable
any material or labor supplied by the Developer regarding the Improvements, the Developer or
contractor shall remove and replace the rejected material with approved material. In addition, the
rejected labor must be done again to the specifications and approval of the City and at the sole cost
and expense of the Developer.
2.10. Final Inspection/Acceptance. Upon completion of the Improvements, representatives of the
City and the Developer will make a final inspection of the work. Before final payment is made to the
contractor by the Developer, the City must be satisfied that all work is satisfactorily completed in
accordance with the Plans, and the Developer’s engineer-of-record and geotechnical professional
shall submit a written statement attesting to the same. The City shall have no obligation to accept the
Improvements if they are not consistent with the Plans or not in compliance with all federal, state,
local and City ordinances and standards related thereto. Final approval and acceptance of the
Improvements shall be by a resolution duly adopted by the City Council of the City.
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2.11. Warranty on Property Work and Materials. The Developer warrants all work required to be
performed by it under this Agreement regarding the Improvements against defective material and
faulty workership for a period of one (1) year after completion and acceptance by the City, except
that the warranty period for the drainage and erosion control portions of the Improvements shall be
for two (2) years after completion and acceptance by the City. In addition, all trees, grass, sod or
other landscaping installed in connection with the Improvements are warranted to be alive, of good
quality, and disease free for a period of one (1) year after completion and acceptance by the City.
Any replacements of same shall be similarly warranted. The Developer shall be solely responsible
for all costs of performing repair and replacement work required by the City and shall perform such
work within thirty (30) days of receiving demand for such work from the City, weather permitting.
2.12. Records, Submittals, and Plans. The Developer agrees to provide the City with copies of all
bids and change orders, and the names of all suppliers and subcontractors, and other similar
information relating to the Improvements to be constructed by the Developer. Developer or its agent
shall submit to Director of Public Works all shop drawings, cut sheets, and manufacturer data for all
materials used in City Improvements prior to performing installation. Upon completion of the
Improvements, the Developer shall provide “as built” record plans. These will include two paper
copies, one Mylar copy, and an electronic copy.
2.13. Compliance with Existing Laws. The Developer warrants that all work performed pursuant to
this Agreement shall be in compliance with existing laws, ordinances, pertinent regulations,
standards, specifications of regulatory agencies and specifications of the City, and is subject to
approval of the City’s Building Official and City Engineer.
2.14. City’s Access. The Developer hereby grants the city, its agents, employees, officers and
contractors a non-revocable license to enter the Property to perform all work and inspections deemed
appropriate by the City related to said development.
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ARTICLE THREE
ADDITIONAL PROVISIONS
3.01. Property Monumentation. The Developer agrees to provide sufficient property monumentation
(temporary), installed by or under the direction of a registered land surveyor, before and during the
course of the Improvements to ensure proper layout. The Developer further agrees to install all
subdivision monumentation (permanent) within one year from recording of the plat, or the
monumentation shall be installed on a per-lot basis at the time a building permit for the subject lot is
issued, whichever occurs first. At the end of the one-year period, the Developer shall submit to the
City written verification by a registered land surveyor that the surveyor has installed the required
monuments throughout the plat or subdivision.
3.02. Payment of City Costs. The Developer agrees to reimburse the City its actual costs for
preparing and administering this Agreement and processing the plat. The costs to be paid shall
include, but not be limited to, attorneys’ fees, engineering fees, and other technical or professional
assistance, including the work of the City staff.
3.03. Attorney’s Fees. The Developer agrees to pay the City’s costs and expenses, including
attorneys’ fees, in the event a suit or action is brought by the City against the Developer to enforce
the terms of this Agreement, and the City is the prevailing party in the suit or action brought by the
City against the Developer.
3.04. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments
signed by the parties shall constitute the entire agreement between the City and Developer, and
supersedes any other written or oral agreements between City and Developer. This Agreement can
only be modified in writing signed by City and Developer. The parties acknowledge that
amendments or modifications to this Agreement that, in the opinion of the City Administrator,
substantially deviate from the approved site and construction plans or the overall intent or design of
the approved single family residential housing project, shall require approval by the City Council.
3.05. Assignment. The Developer may not assign any of its obligations under this Agreement with-
out the prior written consent of the City.
3.06. Agreement to Run with Land. This Agreement shall be recorded among the land records of
Ramsey County, Minnesota. The provisions of this Agreement shall run with the Property and be
binding upon the Developer and its assigns or successors in interest. Notwithstanding the foregoing,
no conveyance of the Property or any part thereof shall relieve the Developer of its liability for full
performance of this Agreement unless the City expressly so releases the Developer in writing.
3.07. Representatives Not Individually Liable. No officer, agent or employee of the City shall be
personally liable to the Developer, or any successor in interest, in the event of any default or breach
by the City on any obligation or term of this Agreement.
3.08. Notices and Demands. Any notice, demand, or other communication under this Agreement by
either party to the other shall be sufficiently given or delivered if it is dispatched by registered or
certified mail, postage prepaid, return receipt requested, or delivered personally:
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(a) as to the Developer: EICHI, INC.
2195 Silver Lake Road
New Brighton, MN 55112
(b) as to the City: City of Mounds View
2401 County Road 10
Mounds View, MN 55112
Attn: City Administrator
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this section 3.08.
3.09. Disclaimer of Relationships. The Developer acknowledges that nothing contained in this
Agreement nor any act by the City or the Developer shall be deemed or construed by the Developer
or by any third person to create any relationship of third-party beneficiary, principal and agent,
limited or general partner, or joint venture between the City and the Developer.
3.10. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall constitute one and the same instrument.
3.11. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance
with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this
Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this
Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or
otherwise.
3.12. Indemnification. Notwithstanding anything to the contrary in this Agreement, the City, its
officers, agents, and employees shall not be liable or responsible in any manner to the Developer,
Developer’s successors or assigns, the Developer’s contractor or subcontractors, material suppliers,
laborers, or to any other person or persons for any claim, demand, damage, or cause of action of any
kind or character arising out of or by reason of the execution of this Agreement or the performance
and completion of the Improvements. The Developer, and the Developer’s successors or assigns,
agree to protect, defend and save the City, and its officers, agents, and employees, harmless from all
such claims, demands, damages, and causes of action and the costs, disbursements, and expenses of
defending the same, including but not limited to, attorneys fees, consulting engineering services, and
other technical, administrative or professional assistance. Nothing in this Agreement shall constitute
a waiver or limitation of any immunity or limitation on liability to which the City is entitled under
Minnesota Statutes, Chapter 466, or otherwise. Notwithstanding the foregoing, the above release
and indemnification by Developer shall not extend to claims, damages, loss or cause of action that
are result of the intentional wrongful acts or negligence of the City.
13
3.13. Miscellaneous Provisions.
A. The Developer, in executing this Agreement, assumes all liability and costs for
damage or delays, incurred by the City, in the construction of public improvements,
caused by the Developer, its employees, contractors, subcontractors, materialmen or
agents.
B. The Developer represents to the City that the development of the Property, the
subdivision and the plat comply with all city, county, metropolitan, state and federal
laws and regulations including, but not limited to: subdivision ordinances, zoning
ordinances and environmental regulations. If the City determines that the subdivision
or the plat or the development of the Property does not comply, the City may, at its
option, refuse to allow construction or development work on the Property until the
Developer does comply. Upon the City’s demand, the Developer shall cease work
until there is compliance.
C. Third parties shall have no recourse against the City under this Agreement.
D. Breach of the terms of this Agreement by the Developer shall be grounds for denial
of building permits.
E. Wherever possible, each provision of this Agreement and each related document shall
be interpreted so that it is valid under applicable law. If any provision of this
Agreement or any related document is to any extent found invalid by a court or other
governmental entity of competent jurisdiction, that provision shall be ineffective only to
the extent of such invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Agreement or any other related document.
F. If building permits are issued prior to the completion and acceptance of public
improvements, the Developer assumes all liability and costs resulting in delays in
completion of public improvements and damage to public improvements caused by
the City, Developer, its contractors, subcontractors, materialmen, employees, agents
or third parties.
G. No failure by any party to insist upon the strict performance of any covenant, duty,
agreement, or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof, shall constitute a waiver of any such breach of any
other covenant, agreement, term, or condition, nor does it imply that such covenant,
agreement, term or condition may be waived again. The action or inaction of the City
shall not constitute a waiver or amendment to the provisions of this Agreement. To
be binding, amendments or waivers shall be in writing and signed by the parties. The
City’s failure to promptly take legal action to enforce this Agreement shall not be a
waiver or release.
H. Each right, power or remedy herein conferred upon the City is cumulative and in
addition to every other right, power or remedy, express or implied, now or hereafter
arising, available to the City, at law or in equity, or under any other agreement, and
14
each and every right, power and remedy herein set forth or otherwise so existing may
be exercised from time to time as often and in such order as may be deemed
expedient by the City and shall not be a waiver of the right to exercise at any time
thereafter any other right, power or remedy.
I. This Agreement, together with the exhibits hereto, which are incorporated by reference,
constitutes the complete and exclusive statement of all mutual understandings between
the parties with respect to this Agreement, superseding all prior or contemporaneous
proposals, communications, and understandings, whether oral or written, pertaining to
the subject matter of this Agreement.
J. No officer, agent or employee of the City shall be personally liable to Developer, or
any successor in interest, in the event of any default or breach by the City on any
obligation or term of this Agreement.
K. Data provided to the Developer or received from the Developer under this Agreement
shall be administered in accordance with the Minnesota Government Data Practices
Act, Minnesota Statutes, Chapter 13.
15
IN WITNESS OF THE ABOVE, the parties have caused this Agreement to be executed on the
date and year written above.
CITY OF MOUNDS VIEW
By ______________________________________
Mayor
By ______________________________________
City Administrator
EICHI, INC.
_________________________________________
STATE OF MINNESOTA )
) SS.
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this _____ day of
________________, 2014, by Joe Flaherty and James Ericson, the Mayor and City Administrator,
respectively, of the City of Mounds View, a Minnesota municipal corporation, on behalf of the
corporation.
______________________________
Notary Public
STATE OF MINNESOTA )
) SS.
COUNTY OF _________ )
The foregoing instrument was acknowledged before me this ______ day of
________________, 2014, by Martin Harstad, Chief Executive Officer, EICHI, INC.
______________________________
Notary Public
16
Item No: 07B
Meeting Date: August 11, 2014
Type of Business: Work Session
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Desaree Crane, Assistant City Administrator
Item Title/Subject: First Reading of Ordinance 890, Amending Section 701.04,
subd, 8(a) of the Mounds View City Code, Revising Kennel
Licensing Requirements
Background
In accordance with the Mounds View City Code §701.03, subd. 10(a), any premises where three
(3) or four (4) dogs over six (6) months of age are owned, boarded, bred, kept, or harbored must
obtain a Residential Kennel License approved by the City. In accordance with §701.03, subd.
10(b), any premises where more than four (4) dogs over six (6) months of age, boarded, bred,
kept, or harbored is required to obtain a Commercial Kennel License. The City is starting to see
an increase in Residential Kennel License applications, and Staff felt this may be a good time to
re-examine the City Code in regard to kennel licensing. During the July Work Session, the City
Council reviewed the requirements of obtaining a kennel license with the City.
The City currently has five (5) Residential Kennel Licenses, and one (1) Commercial Kennel
License (Sham-O-Jet Kennels). Of the five (5) Residential Kennel Licenses, four have three (3)
dogs on the premises, and one has four (4) dogs on the premises.
Discussion
It was the consensus of the City Council to revise the licensing requirements for obtaining a
kennel license by removing the petition requirement and adding a public hearing requirement in its
place. The City Council will continue to approve all residential and commercial kennel licenses.
Currently, §701.04, subd. 8(a) states:
Subd. 8. Kennels: (Ord. 696, 4-22-02)
a. Licensing requirements: The owner of a proposed dog kennel shall submit a license
application and present a petition to the City Administrator signed
by more than fifty percent (50%) of all registered landowners or
those occupying land within five hundred feet (500’) of the
proposed kennel who agree to the establishment of the kennel.
The petition shall contain, among other items of information, the
number and species of dogs intended to be kept on the premises,
whether the yard or kennel area is or will be fenced and whether
the dogs would be raised for breeding purposes. Upon the receipt
of the petition and license application, the City Administrator shall
present the petition and application to the City Council for their
consideration. (Ord. 696, 4-22-02; Ord. 774, 8-14-06; Amended,
Ord. 844, 5-20-10)
Item 07B
August 11, 2014
Page 2
Staff recommends deleting the current language and replacing it with the following below:
a. Licensing requirements: The owner of a proposed dog kennel shall submit a license
application to the City Administrator. Upon receipt of the
application, the City Administrator shall schedule a public hearing
at a future City Council Meeting and shall notify all registered
landowners or those occupying land within five hundred feet (500’)
of the proposed kennel at least ten (10) days in advance of the
hearing. The kennel license may be issued by the City Council by
resolution after a public hearing is held.
Recommendation
Staff recommends a review of the proposed Ordinance and approval of the First Reading of
Ordinance 890, revising § 701.04, subd. 8(a) of the Mounds View City Code in regard to kennel
licensing requirements.
Respectfully submitted,
________________________________
Desaree Crane
ORDINANCE NO. 890
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING SECTION 701.04, SUBDIVISION 8(A)
REVISING KENNEL LICENSING REQUIREMENTS
THE CITY OF MOUNDS VIEW ORDAINS:
SECTION 1. The City Council of the City of Mounds View hereby amending Section
701.04, subd. 8(a), of the Mounds View Municipal Code, by deleting the stricken text
and adding the underlined text as follows:
Subd. 8. Kennels: (Ord. 696, 4-22-02)
a. Licensing requirements: The owner of a proposed dog kennel shall submit a license
application and present a petition to the City Administrator signed by more than fifty
percent (50%) of all registered landowners or those occupying land within five
hundred feet (500’) of the proposed kennel who agree to the establishment of the
kennel. The petition shall contain, among other items of information, the number and
species of dogs intended to be kept on the premises, whether the yard or kennel
area is or will be fenced and whether the dogs would be raised for breeding
purposes. Upon the receipt of the petition and license application, the City
Administrator shall present the petition and application to the City Council for their
consideration. (Ord. 696, 4-22-02; Ord. 774, 8-14-06; Amended, Ord. 844, 5-20-10)
Subd. 8. Kennels:
a. Licensing requirements: The owner of a proposed dog kennel shall submit a license
application to the City Administrator. Upon receipt of the application, the City
Administrator shall schedule a public hearing at a future City Council Meeting and
shall notify all registered landowners or those occupying land within five hundred
feet (500’) of the proposed kennel at least ten (10) days in advance of the hearing.
The kennel license may be issued by the City Council by resolution after a public
hearing is held.
SECTION 2. In accordance with Section 3.07 of the City Charter, City staff shall have
the following summary printed in the official City newspaper in lieu of the complete
ordinance:
On August 25, 2014, the City Council adopted Ordinance 890 which amends
Section 701.04, subd. 8(a), revising the licensing requirements for obtaining a
kennel license by removing the petition requirement and adding a public hearing
requirement in its place.
Ordinance 890
Page 2
A printed copy of the ordinance is available for inspection during regular business
hours at Mounds View City Hall and is available on line at the City’s web site
located at www.ci.mounds-view.mn.us.
SECTION 3. This ordinance shall take effect and be in force 30 days from and after its
passage and publication, in accordance with Section 3.09 of the City Charter.
Introduction and First Reading by the Mounds View City Council on August 11, 2014.
Second Reading and Adoption by the Mounds View City Council on August 25, 2014.
Publication Date: September 4, 2014
Joe Flaherty, Mayor
Attest:
______________________________
James Ericson
City Administrator
(seal)
447996v2 JAE MN475-38
RESOLUTION NO. 8288
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION CALLING A PUBLIC HEARING ON THE ISSUANCE OF A
REVENUE NOTE AND PROVIDING PRELIMINARY APPROVAL TO THE
PROPOSED ISSUANCE OF THE REVENUE NOTE
BE IT RESOLVED by the City Council of the City of Mounds View, Minnesota (the “City”), as
follows:
Section 1. Recitals.
1.01. Pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the
“Industrial Development Act”), the City is authorized to issue revenue bonds for the following purposes:
(i) to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement,
betterment or extension of a project, defined in the Industrial Development Act as any properties, real or
personal, used or useful in connection with a revenue producing enterprise; and (ii) to refund, in whole or
in part, bonds previously issued by the City under the authority of the Industrial Development Act and
interest on such bonds.
1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Housing Act”), the City
is authorized to issue revenue bonds to provide funds to finance or refinance multifamily housing
developments (including nursing and assisted living facilities) located within the City or outside of the
City pursuant to an agreement with the host city.
1.03. Catholic Eldercare, a Minnesota nonprofit corporation, or any of its affiliates (the
“Borrower”), has proposed that the City issue its revenue note, in one or more series (the “City Note”), in
an aggregate principal amount not to exceed $4,000,000. The Borrower has proposed to apply the
proceeds of the City Note, along with the proceeds of a revenue note (the “Lauderdale Note”) proposed to
be issued by the City of Lauderdale, Minnesota (the “City of Lauderdale”) in an aggregate principal
amount not to exceed $10,000,000 and a revenue note (the “Minneapolis Note”) proposed to be issued by
the City of Minneapolis (the “City of Minneapolis”) in an aggregate principal amount not to exceed
$5,000,000, to (i) finance the acquisition, construction, and equipping of a transitional care unit consisting
of the addition of 24 skilled nursing beds to the existing 150-bed skilled nursing facility located at 900
2nd Street NE in the City of Minneapolis (the “TCU Facility”); (ii) fund capitalized interest on the City
Note, the Lauderdale Note, and the Minneapolis Note (collectively, the “Notes”) during construction of
the TCU Facility; (iii) refund the outstanding Variable Rate Demand Multifamily Housing Revenue
Bonds (St. Hedwig’s Assisted Living Project), Series 2002 (the “2002 Assisted Living Bonds”), issued by
the City of Minneapolis on December 23, 2002, in the original aggregate principal amount of $7,570,000;
(iv) refund the outstanding Variable Rate Demand Nursing Home Revenue Refunding Bonds (Catholic
Eldercare Project), Series 2002 (the “2002 Nursing Home Bonds”), issued by the City of Minneapolis on
December 23, 2002, in the original aggregate principal amount of $9,580,000; (v) refinance certain
outstanding taxable indebtedness of the Borrower; (vi) fund required reserves for the Notes, if any; and
(vii) pay the costs of issuing the Notes (collectively, the “Project”).
447996v2 JAE MN475-38 2
1.04. The City of Minneapolis loaned the proceeds of the 2002 Assisted Living Bonds to
Catholic Eldercare Community Services Corporation II, a Minnesota nonprofit corporation and an
affiliate of the Borrower, to finance the acquisition, construction, and equipping of a 71-unit assisted
living facility located at 2919 Randolph Street NE (commonly known as RiverVillage East) in the City of
Minneapolis (the “Assisted Living Facility”). The 2002 Assisted Living Bonds were issued in accordance
with the Industrial Development Act.
1.05. The City of Minneapolis loaned the proceeds of the 2002 Nursing Home Bonds to the
Borrower, to (i) refinance the acquisition, construction, and equipping of the 150-bed skilled nursing
facility located at 900 2nd Street NE (commonly known as Catholic Eldercare on Main) in the City of
Minneapolis (the “Skilled Nursing Facility”); and (ii) refinance the acquisition, construction, and
equipping of a 51-unit assisted living multifamily rental housing facility located at 909 Main Street NE
(commonly known as MainStreet Lodge) in the City of Minneapolis (the “Assisted Living Housing
Facility”). The 2002 Nursing Home Bonds were issued in accordance with the Industrial Development
Act and the Housing Act, and the City of Minneapolis adopted programs for the facilities financed in
accordance with the Housing Act.
1.06. The facilities financed and refinanced with the proceeds of the Notes are referred to
herein as the “Facilities.” The Facilities will be owned and operated by individual affiliates of the
Borrower.
1.07. Prior to the issuance of the City Note, the City Council of the City must conduct a public
hearing to (i) approve the issuance of the City Note pursuant to the requirements of Section 147(f) of the
Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder (the “Code”); and
(ii) approve the Project pursuant to Section 469.154, subdivision 4 of the Industrial Development Act.
Section 2. Preliminary Findings. Based on representations made by the Borrower to the
City to date, the City Council of the City hereby makes the following preliminary findings,
determinations, and declarations:
(a) The Assisted Living Housing Facility, which is being refinanced with proceeds
of the Notes, consists of a multifamily housing development designed and intended to be used for
rental occupancy by seniors.
(b) The proceeds of the City Note will be loaned to the Borrower and the proceeds of
the loan will be applied to finance a portion of the Project. The City will enter into a loan
agreement (or other revenue agreement) with the Borrower requiring loan repayments from the
Borrower in amounts sufficient to repay the loan of the proceeds of the City Note when due and
requiring the Borrower to pay all costs of maintaining and insuring the Facilities, including taxes
thereon.
(c) In preliminarily authorizing the issuance of the City Note and the financing and
refinancing of the Project, the City’s purpose is to further the policies of the Housing Act and the
Industrial Development Act.
(d) The City Note will be a special, limited obligation of the City payable solely
from the revenues pledged to the payment thereof, and will not be a general or moral obligation
of the City and will not be secured by or payable from revenues derived from any exercise of the
taxing powers of the City.
447996v2 JAE MN475-38 3
Section 3. Public Hearing.
3.01. The City Council shall meet at 7:00 p.m. on Monday, September 8, 2014, to conduct a
public hearing as requested by the Borrower, notice of which hearing (the “Public Notice”) will be
published as required by Section 469.154, subdivision 4 of the Industrial Development Act,
Section 462C.04, subdivision 2 of the Housing Act, and Section 147(f) of the Code.
3.02. The City Administrator is hereby authorized and directed to publish the Public Notice, in
substantially the form attached hereto as EXHIBIT A, in the Sun Focus, the official newspaper of the City
and a newspaper of general circulation in the City. The Public Notice shall be published at least once, at
least fifteen (15) days prior to the date of the public hearing. At the public hearing, reasonable
opportunity will be provided for interested individuals to express their views, both orally and in writing,
on the proposed issuance of the City Note and the Project.
3.03. Pursuant to Section 469.154 of the Industrial Development Act, prior to the issuance of
the City Note by the City, the Commissioner of the Minnesota Department of Employment and Economic
Development (“DEED”) must approve the new costs of the Project to be funded by the City Note on the
basis of an application submitted by the City with all required attachments and exhibits (the “DEED
Application”).
3.04. In accordance with Section 469.154 of the Industrial Development Act, the City
Administrator is hereby authorized and directed to cause a draft copy of the DEED Application, together
with drafts of all required attachments and exhibits, to be prepared by Kennedy & Graven, Chartered, as
bond counsel. The DEED Application, together with all attachments and exhibits, shall be made available
for public inspection in the office of the City Administrator during regular business hours of the City.
The City Administrator and other officers, employees, attorneys, and agents of the City are hereby
authorized to provide DEED with any information needed for this purpose, and the City Administrator is
authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project.
Section 4. Preliminary Approvals.
4.01. The City Council hereby states its preliminary intention to issue the City Note in the
maximum aggregate principal amount of $4,000,000 to (i) finance a portion of the costs of acquiring,
constructing, and equipping the TCU Facility; (ii) refund the outstanding principal amount of the 2002
Assisted Living Bonds and the 2002 Nursing Home Bonds; (iii) fund capitalized interest on the City
Note; (iv) fund required reserves for the City Note, if any; and (v) pay the costs of issuing the City Note;
provided, however, that the new costs of the Project are approved by DEED. The issuance of the City
Note is also subject to the mutual agreement of the City, the Borrower, and the initial purchaser of the
City Note as to the details of the City Note and provisions for its payment.
4.02. The Note shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any
property of the City except the City’s interest in the loan or revenue agreement with respect to the City
Note and the Project, and the City Note, when, as, and if issued, shall recite in substance that the City
Note, including interest thereon, is payable solely from the revenues received from the Project and
property pledged to the payment thereof, and shall not constitute a general or moral obligation of the City.
4.03. The law firm of Kennedy & Graven, Chartered, is authorized to act as Bond Counsel and
to assist in the preparation and review of necessary documents relating to the Project and the City Note
issued in connection therewith. The Mayor, the City Administrator, and other officers, employees, and
agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents.
447996v2 JAE MN475-38 4
Section 5. Costs. The Borrower will pay the administrative fees of the City and pay, or,
upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection
with the Project and the issuance of the City Note, whether or not the City Note is issued.
Section 6. Commitment Conditional. The adoption of this resolution does not constitute a
guaranty or firm commitment that the City will issue the City Note as requested by the Borrower. The
City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the
City Note, or issue the City Note in an amount less than the amount referred to herein, should the City at
any time prior to issuance thereof determine that it is in the best interest of the City not to issue the City
Note, or to issue the City Note in an amount less than the amount referred to in Section 4.01 hereof, or
should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of
the documents required for the transaction.
Section 7. Effective Date. This resolution shall be in full force and effect from and after its
passage.
Approved by the City Council of the City of Mounds View, Minnesota, this 11th day of August,
2014.
Joe Flaherty, Mayor
Attest:
Jim Ericson, City Administrator
A-1
447996v2 JAE MN475-38
EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY OF MOUNDS VIEW, MINNESOTA
NOTICE OF PUBLIC HEARING WITH RESPECT TO A PROJECT
DESCRIBED IN MINNESOTA STATUTES, SECTIONS 469.152
THROUGH 469.1655, AS AMENDED, AND CHAPTER 462C, AS
AMENDED, AND THE ISSUANCE OF A REVENUE NOTE
THEREUNDER
NOTICE IS HEREBY GIVEN that the City Council of the City of Mounds View, Minnesota (the
“City”) will hold a public hearing on Monday, September 8, 2014, at or after 7:00 p.m., at City Hall, 2401
Highway 10, in the City, to consider a proposal for the issuance of a revenue obligation of the City, in one
or more series (the “City Note”), under Minnesota Statutes, Sections 469.152 through 469.1655, as
amended (the “Industrial Development Act”), and Minnesota Statutes, Chapter 462C, as amended (the
“Housing Act”), on behalf of Catholic Eldercare, a Minnesota nonprofit corporation, or any of its
affiliates (the “Borrower”). The proceeds of the City Note proposed to be issued by the City for the
benefit of the Borrower will be applied, along with the proceeds of a revenue note (the “Lauderdale
Note”) proposed to be issued by the City of Lauderdale, Minnesota (the “City of Lauderdale”) in an
aggregate principal amount not to exceed $10,000,000 and a revenue note (the “Minneapolis Note”)
proposed to be issued by the City of Minneapolis (the “City of Minneapolis”) in an aggregate principal
amount not to exceed $5,000,000, to (i) finance the acquisition, construction, and equipping of a
transitional care unit consisting of the addition of 24 skilled nursing beds to the existing 150-bed skilled
nursing facility located at 900 2nd Street NE in the City of Minneapolis (the “TCU Facility”); (ii) fund
capitalized interest on the City Note, the Minneapolis Note, and the Mounds View Note (collectively, the
“Notes”) during construction of the TCU Facility; (iii) refund the outstanding Variable Rate Demand
Multifamily Housing Revenue Bonds (St. Hedwig’s Assisted Living Project), Series 2002 (the “2002
Assisted Living Bonds”), issued by the City of Minneapolis on December 23, 2002, in the original
aggregate principal amount of $7,570,000; (iv) refund the outstanding Variable Rate Demand Nursing
Home Revenue Refunding Bonds (Catholic Eldercare Project), Series 2002 (the “2002 Nursing Home
Bonds”), issued by the City of Minneapolis on December 23, 2002, in the original aggregate principal
amount of $9,580,000; (v) refinance certain outstanding taxable indebtedness of the Borrower; (vi) fund
required reserves for the Notes, if any; and (vii) pay the costs of issuing the Notes (collectively, the
“Project”).
The proceeds of the 2002 Assisted Living Bonds were used by Catholic Eldercare Community
Services Corporation II, a Minnesota nonprofit corporation and an affiliate of the Borrower, to finance the
acquisition, construction, and equipping of a 71-unit assisted living facility located at 2919 Randolph
Street NE (commonly known as RiverVillage East) in the City of Minneapolis (the “Assisted Living
Facility”). The proceeds of the 2002 Nursing Home Bonds were used by the Borrower to (i) refinance the
acquisition, construction, and equipping of the 150-bed skilled nursing facility located at 900 2nd Street
NE (commonly known as Catholic Eldercare on Main) in the City of Minneapolis (the “Skilled Nursing
Facility”); and (ii) refinance the acquisition, construction, and equipping of a 51-unit assisted living
multifamily rental housing facility located at 909 Main Street NE (commonly known as MainStreet
Lodge) in the City of Minneapolis (the “Assisted Living Housing Facility”).
The facilities financed and refinanced with the proceeds of the Notes (the “Facilities”) will be
owned and operated by individual affiliates of the Borrower.
A-2
447996v2 JAE MN475-38
Following the public hearing, the City Council will consider adoption of a resolution approving
the Project and the issuance of the City Note in accordance with the requirements of the Industrial
Development Act and the Housing Act. The aggregate face amount of the City Note proposed to be
issued to finance the Project is presently estimated not to exceed $4,000,000 and may be issued in one or
more series. The City Note proposed to be issued by the City will constitute a special, limited obligation
of the City payable solely from the revenues expressly pledged to the payment thereof, and will not be a
general or moral obligation of the City and will not be secured by the taxing power of the City or any
assets or property of the City except any interests of the City in the Project that may be granted to the City
in conjunction with this financing.
A draft copy of the Minnesota Department of Employment and Economic Development for
approval of the new costs of the Project is on file with the City and is available for public inspection in
the office of the City Administrator during regular business hours. Anyone desiring to be heard during
the public hearing will be afforded an opportunity to do so.
All interested persons may appear and be heard at the time and place set forth above.
Dated: [Date of Publication]
BY ORDER OF THE CITY COUNCIL OF
THE CITY OF MOUNDS VIEW,
MINNESOTA
/s/ Jim Ericson
City Administrator
City of Mounds View, Minnesota
448126v1 JAE MN475-38
Offices in
Minneapolis
Saint Paul
St. Cloud
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
www.kennedy-graven.com
Affirmative Action, Equal Opportunity Employer
JENNY S. BOULTON
Attorney at Law
Direct Dial (612) 337-9202 Email: jboulton@kennedy-graven.com
August 8, 2014
Mark Beer
Finance Director, City of Mounds View
2401 Highway 10
Mounds View, MN 55112
Re: Resolution providing preliminary approval for the issuance of the revenue obligation proposed to be
issued by the City of Mounds View for the benefit of Catholic Eldercare
Dear Mark,
Catholic Eldercare, a Minnesota nonprofit corporation, or any of its affiliates (the “Borrower”), has requested
that the City of Mounds View (the “City”) issue its revenue obligation in the maximum principal amount of
$4,000,000 (the “City Note”), pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as
amended, and Minnesota Statutes, Chapter 462C, as amended. In addition to requesting that the City issue
the City Note, the Borrower has proposed that the City of Minneapolis (the “City of Minneapolis”) issue a
revenue obligation in the maximum principal amount of $5,000,000 (the “Minneapolis Note”) and that the
City of Lauderdale, Minnesota (the “City of Lauderdale”) issue a revenue obligation in the maximum
principal amount of $10,000,000 (the “Lauderdale Note”). The City Council is being asked to adopt the
attached resolution on Monday, August 11, 2014, which provides preliminary approval for the issuance of the
City Note and calls for a public hearing to be conducted on Monday, September 8, 2014.
If the City agrees to issue the City Note, the Borrower will use the proceeds of the City Note, along with the
proceeds of the Minneapolis Note and the Lauderdale Note, to (i) finance the acquisition, construction, and
equipping of a transitional care unit consisting of the addition of 24 skilled nursing beds to the existing
150-bed skilled nursing facility located at 900 2nd Street NE in the City of Minneapolis (the “TCU Facility”);
(ii) fund capitalized interest on the City Note, the Minneapolis Note, and the Lauderdale Note (collectively,
the “Notes”) during construction of the TCU Facility; (iii) refund the outstanding Variable Rate Demand
Multifamily Housing Revenue Bonds (St. Hedwig’s Assisted Living Project), Series 2002 (the “2002
Assisted Living Bonds”), issued by the City of Minneapolis on December 23, 2002, in the original aggregate
principal amount of $7,570,000; (iv) refund the outstanding Variable Rate Demand Nursing Home Revenue
Refunding Bonds (Catholic Eldercare Project), Series 2002 (the “2002 Nursing Home Bonds”), issued by the
City of Minneapolis on December 23, 2002, in the original aggregate principal amount of $9,580,000; (v)
refinance certain outstanding taxable indebtedness of the Borrower; (vi) fund required reserves for the Notes,
if any; and (vii) pay the costs of issuing the Notes (collectively, the “Project”). The City of Minneapolis
loaned the proceeds of the 2002 Assisted Living Bonds to Catholic Eldercare Community Services
Corporation II, a Minnesota nonprofit corporation and an affiliate of the Borrower, to finance the acquisition,
construction, and equipping of a 71-unit assisted living facility located at 2919 Randolph Street NE
(commonly known as RiverVillage East) in the City of Minneapolis. The City of Minneapolis loaned the
448126v1 JAE MN475-38 2
proceeds of the 2002 Nursing Home Bonds to the Borrower to (i) refinance the acquisition, construction, and
equipping of the 150-bed skilled nursing facility located at 900 2nd Street NE (commonly known as Catholic
Eldercare on Main) in the City of Minneapolis; and (ii) refinance the acquisition, construction, and equipping
of a 51-unit assisted living multifamily rental housing facility located at 909 Main Street NE (commonly
known as MainStreet Lodge) in the City of Minneapolis. The facilities financed and refinanced with the
proceeds of the Notes will be owned and operated by individual affiliates of the Borrower.
The City Note is proposed to be privately placed with Northeast Bank (the “Lender”). If the City Note is
authorized to be issued by the City Council, it will be issued as a conduit revenue bond secured solely by the
revenues derived from a loan agreement (the “Loan Agreement”) to be executed by the City and the
Borrower and from other security provided by the Borrower. The City Note will not constitute a general or
moral obligation of the City and will not be secured by or payable from any property or assets of the City
(other than the interests of the City in the Loan Agreement) and will not be secured by any taxing power of
the City. The City Note will not be subject to any debt limitation imposed on the City and the issuance of the
City Note will not have any adverse impact on the credit rating of the City, even in the event that Borrower
encounters financial difficulties with respect to the facilities to be financed and refinanced with the proceeds
of the City Note.
The City Note is proposed to be issued as a tax-exempt obligation, the interest on which is excluded from
gross income for federal income tax purposes. Banks and other financial institutions generally do not get the
benefit of the tax-exemption of municipal bonds, but Section 265(b)(3) of the Internal Revenue Code of
1986, as amended (the “Code”), permits each issuer of tax-exempt obligations to designate up to $10,000,000
of tax-exempt bonds as “qualified tax-exempt obligations” (sometimes referred to as “bank-qualified bonds”)
that are eligible for purchase by banks and other financial institutions. In order to issue bank-qualified bonds,
the issuer must not expect to issue more than $10,000,000 of bonds (other than private activity bonds that are
not qualified 501(c)(3) bonds) in a calendar year. The Borrower has requested that the City designate the
City Note as a qualified tax-exempt obligation for purposes of Section 265(b)(3) of the Code. This will leave
the City with the ability to issue $6,000,000 for its own purposes in 2014 without impacting the bank-
qualified status of the City Note. Issuing the City Note in 2014 will have no impact on the City’s ability to
issue bank-qualified bonds in future years.
Under the terms of the Loan Agreement, the Borrower will pay all of the City’s fees and expenses and pay
the City its administrative fee required for bond issuance.
I will attend the City Council meeting on September 8, 2014, and can answer any questions that may arise
during the meeting. Please contact me with any questions you may have prior to the City Council meeting.
Sincerely,
Jenny Boulton
Item No: 7.C.
Meeting Date: August 11, 2014
Type of Business: Council Business
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Mark Beer, Finance Director
Item Title/Subject: Resolution 8288 Calling a Public Hearing on the Issuance of a Revenue
Note and Providing Preliminary Approval to the Proposed Issuance of the
Revenue
Introduction:
The City Council is asked to consider a proposal to use conduit debt financing to finance the acquisition,
construction, and equipping of a transitional care unit consisting of the addition of 24 skilled nursing beds
to the existing 150-bed skilled nursing facility located at 900 2nd Street NE in the City of Minneapolis.
The City is part of the service area for this facility thus we are able to use our lending authority. The
preliminary revenue note amount is $4,000,000 and the City will receive a 1% issuance fee ($40,000) for
the use of the City’s lending authority. Catholic Eldercare the borrower has proposed to apply the
proceeds of the City Note, along with the proceeds of a revenue note proposed to be issued by the City of
Lauderdale, Minnesota in an aggregate principal amount not to exceed $10,000,000 and a revenue note
proposed to be issued by the City of Minneapolis in an aggregate principal amount not to exceed
$5,000,000 for this project. The note will not constitute a general or moral obligation of the City and will
not be secured by or payable from any property or assets of the City and will not be secured by any taxing
power of the City. The City Council has indicated its’ support for moving forward with use of conduit debt
financing for this project.
Discussion:
There are a number of steps that will need to happen before the Subordinate Health Care Facility
Revenue Note can be issued. The first steps are for the City Council is to grant preliminary approval, set
a public hearing, and receive approval from the Minnesota Department of Employment and Economic
Development (DEED). Final approval would occur at the September 8th Council Meeting at a Public
Hearing.
The City Council is not obligated to issue the note by this resolution this is just one of the steps necessary
to move toward that objective. If at any time during the review process, the City Council determines that
this is not in the City’s best interest we can withdraw support for the note issuance. The City is
represented by Jenny Boulton as bond council from Kennedy & Graven.
Recommendation:
Staff recommends that Council review the information, ask questions and if comfortable approve
Resolution 8288.
Respectfully submitted,
________________________
Mark Beer
Finance Director
Item No: 08A
Meeting Date: July 28, 2014
Type of Business: CA
City Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Desaree Crane, Assistant City Administrator
Item Title/Subject: Resolution 8290, Appointing Blake Downes to the Streets
and Utilities Committee
Background:
The Streets and Utilities Committee is a temporary advisory group that was established by the
City Council in February 2008 through recommendations by members of the Streets and Utilities
Task Force - a citizen group that developed the Street and Utility Improvement Program in 2007.
The overall charge of the Committee is to ensure that the Street and Utility Improvement
Program is implemented as adopted. The Committee advises and provides recommendations to
the City Council on non-standard street design and financing issues encountered, reviews
stormwater infiltration basin appeals, and evaluates any public comment associated with non-
standard streets, stormwater appeals, implemented policies, or the Program in general. The
Committee's purpose will be fulfilled upon the completion of the Street and Utility Improvement
Program at which time the Committee will be disbanded. There are two seats available on this
seven seat committee; both seats will be expiring on December 31, 2016.
Discussion:
Staff received an application from Blake Downes. Attached is his application. The Streets and
Utilities Committee members do not wish to make recommendations to this committee.
Therefore, all appointments to this committee are made by the City Council without
recommendations by this committee.
Recommendation:
Staff recommends that the City Council review Mr. Downes’s application and appoint Mr.
Downes to the Streets and Utilities Committee. This committee seat will expire on December 31,
2016.
Respectfully submitted,
_______________________
Desaree Crane
RESOLUTION 8290
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION APPOINTING BLAKE DOWNES TO THE
STREETS AND UTILITIES COMMITTEE
WHEREAS, the Streets and Utilities Committee is a temporary advisory group that was
established by the City Council in February 2008; and
WHEREAS, there are seven (7) seats on this Committee, with five (5) members
currently serving; and
WHEREAS, the City Council is required to appoint members to the Streets and Utilities
Committee; and
WHEREAS, Staff received an application from Blake Downes who has interest in
serving on the Streets and Utilities Committee.
NOW, THEREFORE, BE IT RESOLVED, that the Mounds View City Council hereby
appoints Blake Downes to the Streets and Utilities Committee with a term expiration date of
December 31, 2016.
Adopted this 11th day of August, 2014.
_______________________________
Joe Flaherty, Mayor
ATTEST:
________________________________
James Ericson, City Administrator
(seal)
City of Mounds View
Interim Financial Report June 30, 2014
Cash Fund Balance Projected
Fund Balance Fund Balance Budgeted Budget % YTD Prior Year Budgeted Budget % YTD Prior Year Increase Fund Balance
#Fund 03/31/2014 12/31/2013 Revenues Revenues Balance Budget Revenues Exp/Exped Exp/Exped Balance Budget Exp/Exped (Decrease)03/31/2014
100 General 9,199,326 9,560,429
Taxes 4,109,212 1,431,866 2,677,346 34.85%1,644,481
Licenses & Permits 178,342 127,778 50,564 71.65%89,076
Intergovernmental 356,671 102,332 254,339 28.69%120,954
Charges for Services 20,215 6,039 14,176 29.87%13,426
Fines & Forfeitures 39,300 16,676 22,624 42.43%17,304
Special Assessments 7,000 - 7,000 0.00%-
Other Revenues 389,716 614,385 (224,669) 157.65%165,084
Other Financing Sources 309,585 2,853 306,732 0.92%9,200
City Council - - - - - - 48,643 24,285 24,358 49.92%22,943 - -
Advisory Commissions - - - - - - 10,150 1,081 9,069 10.65%1,447 - -
City Administrator - - - - - - 240,190 110,173 130,017 45.87%112,274 - -
Elections - - - - - - 56,000 10,829 45,171 19.34%4,563 - -
Finance - - - - - - 229,098 116,237 112,861 50.74%108,812 - -
Central Services - - - - - - 236,066 90,567 145,499 38.37%77,281 - -
Community Development - - - - - - 378,693 165,824 212,869 43.79%164,181 - -
Police - - - - - - 2,534,336 1,185,871 1,348,465 46.79%1,198,677 - -
Fire - - - - - - 525,337 379,708 145,629 72.28%343,764 - -
Recreation - - - - - - 107,200 50,073 57,127 46.71%77,484 - -
Park Maintenance - - - - - - 354,673 141,802 212,871 39.98%125,516 - -
Forestry - - - - - - 97,000 2,124 94,876 2.19%144 - -
Public Works Admin - - - - - - 137,314 63,373 73,941 46.15%61,347 - -
Bldg/Grnds Maintenance - - - - - - 132,781 60,234 72,547 45.36%56,057 - -
Veh/Equip Maintenance - - - - - - 105,381 44,598 60,783 42.32%45,041 - -
Street Pavement Mgmt - - - - - - 215,200 84,663 130,537 39.34%86,758 - -
Snow & Ice Control - - - - - - 147,933 106,174 41,759 71.77%68,462 - -
Street Sign Maintenance - - - - - - 41,377 17,935 23,442 43.35%15,964 - -
Conv/Visitor Bureau - - - - - - 50,350 19,720 30,630 39.17%17,067 - -
Miscellaneous - - - - - - 296,263 23,130 273,133 7.81%22,322 - -
Totals General Fund 9,199,326 9,560,429 5,410,041 2,301,929 3,108,112 42.55%2,059,525 5,943,985 2,698,401 3,245,584 45.40%2,610,104 (396,472) 9,163,957
210 Cable 288,143 327,930 118,400 31,793 86,607 26.85%33,246 133,320 71,580 61,740 53.69%67,809 (39,787) 288,143
220 DARE 4,550 4,949 800 369 431 46.13%257 1,250 768 482 61.44%- (399) 4,550
225 Forfeiture 58,056 58,444 5,500 12,821 (7,321) 233.11%20,268 14,250 13,209 1,041 92.69%5,911 (388) 58,056
230 EDA (49,067) 48,748 267,736 2,500 265,236 0.93%3,000 267,431 51,567 215,864 19.28%76,695 (49,067) (319)
252 Community Center 48,022 126,111 377,090 95,852 281,238 25.42%107,107 376,613 174,798 201,815 46.41%206,096 (78,946) 47,165
255 Lakeside Park 15,767 (3,661) 21,766 21,886 (120) 100.55%(18) 21,766 2,458 19,308 11.29%2,212 19,428 15,767
290 Recycling Grant 11,280 15,010 25,211 8,468 16,743 33.59%(28) 25,211 12,198 13,013 48.38%13,510 (3,730) 11,280
410 TIF District 1 72 - - 19,918 (19,918) #DIV/0!566,154 - 19,846 (19,846) #DIV/0!424,451 72 72
420 TIF District 2 835,330 813,231 170,378 22,068 148,310 12.95%(1,653) 103,389 - 103,389 0.00%- 22,068 835,299
430 TIF District 3 529,834 526,042 413,825 30,236 383,589 7.31%(4,083) 1,403,389 18,993 1,384,396 1.35%114,848 11,243 537,285
450 TIF District 5 653,574 703,177 1,303,181 610,696 692,485 46.86%499,160 1,302,181 660,299 641,882 50.71%630,462 (49,603) 653,574
451 Park Dedication 361,678 280,421 9,000 84,572 (75,572) 939.69%310 78,600 3,315 75,285 4.22%3,708 81,257 361,678
460 Veh/Equip Replacement 1,603,275 1,752,218 212,000 - 212,000 0.00%- 521,000 148,943 372,057 28.59%15,569 (148,943) 1,603,275
480 Special Projects 520,539 574,522 6,000 28,464 (22,464) 474.40%(3,051) 628,500 82,448 546,052 13.12%42,740 (53,984) 520,538
485 Street Improvements 8,053,723 7,225,778 1,263,000 877,978 385,022 69.52%512,075 2,176,000 50,934 2,125,066 2.34%155,046 827,044 8,052,822
505 GO Impr Bonds 2004 130,776 373,806 219,050 5,958 213,092 2.72%25,006 258,553 248,989 257,539 96.30%248,200 (243,031) 130,775
700 Water (182,727) 4,075,677 1,022,305 402,784 619,521 39.40%330,682 1,668,133 634,909 1,033,224 38.06%571,324 (232,125) 3,843,552
730 Sewer 2,633,328 4,415,223 1,282,276 805,130 477,146 62.79%653,172 2,005,436 679,343 1,326,093 33.88%708,577 125,787 4,541,010
740 Street Lighting 114,280 115,349 90,164 47,440 42,724 52.62%40,165 96,228 25,891 70,337 26.91%43,829 21,549 136,898
745 Surface Water 1,917,442 3,055,919 287,000 206,101 80,899 71.81%131,724 442,628 67,974 374,654 15.36%57,454 138,127 3,194,046
890 Pooled Investments 122,042 - - 122,042 (122,042) 0.00%151,827 - - - 0.00%- - 122,042
Total all funds 26,869,243 34,049,323 12,504,723 5,739,005 6,765,718 45.89%5,124,845 17,467,863 5,666,863 12,048,975 32.44%5,998,545 (49,900) 34,121,465
Item No. 11.B.1
Meeting Date: August 11, 2014
Type of Business: Reports
Administrator Review: _____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Mark Beer, Finance Director
Item Title/Subject: Financial Report for the Quarter Ended June 30, 2014
SUMMARY FINANCIAL REPORT
General Fund:
Most General Fund revenues are modestly ahead of 2013. Property taxes comprise 70% of
General Fund revenues. We receive an advance on the July property tax settlement in late June.
However, the majority of tax revenue and related state paid credits are received in the 2nd half of
the year. Interest revenue and transfers in and out are recorded at the end of the year.
Intergovernmental revenue, charges for services, and fines and forfeitures are trailing the budget.
A larger percentage of the City’s revenues are received in the second half of the year. Even
though it is part of the third and fourth quarters, the first half of LGA was received in mid July.
($298,512)
Most operating department expenditures are at or below budget expectations and represent
department efforts to continue to spend wisely. Some purchases will be deferred and be carried
over as part of the 2015 budget.
Other Funds:
Banquet operations, which is a component of the Community Center shows a year-to-date deficit
of $17,866 due to a regular weekly rental not renewing in 2014 and lower revenues generally in the
first half of the year. Banquet center revenues are lower by $9,916 from this period last year.
Expenditures are lower by $13,200 due to the timing of payments to the YMCA. Other revenues
should pick-up in the second half of the year as we get into the heart of wedding season with no
change over 2013. A transfer of $170,000 is budgeted for 2014 and the need to transfer the entire
amount will depend on the 2nd half of the year. Community Center operations have experienced
growing maintenance costs and this will only accelerate as the equipment continues to age.
The Street Improvement Fund has experienced significant cost savings over the last six projects
due to the very competitive construction environment. With a number of very significant
construction projects occurring around the metro area street project costs are starting to increase.
We may have to pay more but there are only 2 projects remaining. (H-2015, I-2016)
The Water, Sanitary Sewer, Storm Water and Street Light Utility fund expenses are tracking within
or under budget. Water revenues are slightly under budget due to the very wet spring but with dry
weather starting in the July water revenues will increase after the summer quarter. Most funds are
on target with their respective budgets. The third quarter will provide a more accurate picture on
how the year is going but we are on track, with no significant surprises.
Investments:
The City has and will continue to experience modestly increasing investment earnings as a
result of stable to increasing rates in 2014 and 2015. Investment income for 2014 is $122,042
compared with $151,827 for the same period in 2013. Our portfolio for June 30, 2014 was
26,869,243 compared with $27,592,004 for 2013.
The Federal Open Market Committee (FOMC) continues to maintain the discount rate at 0% -
.25%, which is the same level as in 2013, 2012, 2011, 2010, and 2009. Expectations are that
the Fed will start to move the discount rate up late in 2015 to early 2016 but that will be
dependent on economic data. The Federal Reserve cannot affect interest rates by lowering
the discount rate so they have been purchasing treasury securities and mortgage securities,
which has artificially lowered rates on those securities. The Fed has been tapering bond and
mortgage buying and will continue reducing the amount of purchases based on economic
conditions. Treasury bills are presently providing the following rates-of-return:
Treasury Securities 2014 2013
2 year .460 .300
5 year 1.640 1.380
10 year 2.470 2.620
30 year 3.270 3.720
Cert. of Deposit
1 year .450 .350
Inflation in the next 12 months does not seem to be a concern for the FOMC. GDP for the second
quarter was at 4.0% after a decline of (2.1%) in the first quarter. State unemployment for June was
4.5% compared to national unemployment of 6.1%. The job market continues to be slow to
recover and housing appears to be in the early stages of recovery.
FINANCE DEPARTMENT OPERATIONS:
Second quarter:
The annual financial audit and preparation of the 2013 comprehensive annual financial report
consumes a lot of staff time during the second quarter. Staff also began and completed work on
the five year financial plan and began work on the 2015 budget.
Third and fourth quarters:
The third and fourth quarters will be dominated with budget related work which will culminate with a
truth-in-taxation hearing and adoption of the 2015 budget and tax levy in December. The third
quarter will also include certifying assessments for delinquent utilities, diseased trees, abatements
and other charges due to the City. Work on insurance policy renewal occurs in the fourth quarter.
Respectfully Submitted,
Mark Beer