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HomeMy WebLinkAbout05-31-05 Mayor: Beverly Aplikowski ~ ~HILLS Arden Hills City Council 1245 W. Highway 96 Arden Hills, Minnesota 55112 651.634.5120 www.ci.arden-hills.mn.us Councilmembers: David Grant Brenda Holden Gregg Larson Lois Rem REGULAR MEETING Tuesday May 31,2005 City Vision A strong community that values our unique environment, OUf fiscal soundness, and our tradition as a desirable cit in which to live, work, and la . Agenda City Council Meeting Convenes 7:00 PM Call to Order LEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA 2. APPROVAL OF MINUTES A. May 9, 2005 3. CONSENT CALENDAR A. Claims and PayrolJ B, Approve the City's 2004 Audit Report C. Resolution No. 05-37: Approving the Appointment of Arlene Mitchell to the Communications Committee Those items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar fonnat. There will be no separate discussion of these items, unless a Council Member so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda. D. Payment No.4 to McBuilders, Inc. for the Perry Park Pavilion E. Approval of Goodpointe Technologies for PCI Ratings 4. PUBLIC INQUIRIESIINFORMA TIONAL Public Inquiries/Informational is an opportunity for citizens to bring to the Council's attention any items not currently on the agenda. In addressing the Council, please state your name and address for the record, and a brief summary of the specific item being addressed to the CounciL To allow adequate time for cach person wishing to address the Council, we ask that individuals limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting, or as bench copies, to allow a more timely presentation. S. PUBLIC HEARINGS A. PC# 05-15: Vacating Pedestrian Way East of 1104 Amble Drive 6. NEW BUSINESS A. Rezoning of City Hall Property B. Appointment of a new City HeaIth/Insurance Broker C. Approval of Ordinance No. 360-Regulating Peddlers, Solicitors, and Transient Merchants D. Approval of Resolution No. 05-38 Supporting the Consolidated Dispatch Services in Ramsey County E. City Council Chamber Computer-Technology Upgrades F. LED Traffic Lights G. Approval of Changes to the EDC By-Laws Arden Hills City Council Agenda May 31, 2005 Page 2 Peter Rellegers Scott Clark/Peter Rellegers Schawn Johnson Schawn Johnson Michelle Wolfe Murtuza Siddiqui Murtuza Siddiqui/Tom Moore Scott Clark -Closed Meeting to Discuss Offers and Counter Offers for the Purchase or Sale of the TCAAP Property- Pursuant to MS 13D.OS SUBD 3.c3 *Regular City Council Meeting will resume immediately after the closed session meeting. No action will be taken by the City Council at the closed meeting. 7. Unfinished Business A. Action on GSA's Offer to Purchase B. TCAAP Update CITY COUNCIL REPORTS A. Councilmember Holden B. Councilmember Grant C. Councilmember Rem D. Councilmember Larson E. Mayor Aplikowski ADJOURN Scott Clark Scott Clark > . . . ~ ~HILLS DRAFT CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 9, 2005, 7:00 P.M. CITY HALL COUNCIL CHAMBERS, 1245 WEST HIGHWAY 96 PLEDGE OF ALLEGIANCE CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Beverly Aplikowski called to order the regular City Council meeting at 7:04 p.m. Present: Mayor Beverly Aplikowski, Councilmembers David Grant, Gregg Larson, Lois Rem, and Brenda Holden, Absent: None. Also present were City Administrator, Michelle Wolfe; Director of Operations & Maintenance, Thomas Moore; Finance Director/Treasurer, Murtuza Siddiqui; Community Development Director, Scott Clark; City Engineer, Greg Brown; Assistant to City Manager, Schawn Johnson; City Planner, Pete Hellegers; and Recording Secretary, Kathleen Altman. 1. APPROVAL OF MEETING AGENDA MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (5-0). 2. APPROVAL OF MINUTES A. April 25, 2005 City Council Meeting B. April 18, 2005 City Council Work Session Councilmember Holden requested the following changes: None. Councilmember Grant requested the following changes: April 18, 2005 Council Work Session Minutes, Page 7, last sentence, change "Councilmember Grant asked" to "Councilmember Grant stated." Councilmember Rem requested the following changes: None. Council member Larson requested the following changes: None. \ \Earth \Admin \Council'u\1inutes\Regular\2005\05-09-05,doc ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY 9, 2005 , 2 . Mayor Aplikowski requested the following changes: None. Ms. Wolfe requested the following changes: None. MOTION: Councilmember Larson moved and Councilmember Grant seconded a motion to approve the April 25, 2005 City Council Meeting Minutes as presented, the April 18, 2005 Council Work Session Minutes as amended. The motion carried unanimously (5- 0). 3. CONSENT CALENDAR a. b. Claims and Payroll Resolution No. 05-30: Approving Lady Slipper chapter ABW A Charitable Gambling License Renewal Request Resolution No. 05-31: Recognizing National Public Works Week (May 15th to May 21st) Resolution No. 05-32: Appointment of David McClung to the Planning Commission Resolution No. 05-33: Appointment of Cynthia Wheeler to the Parks, Trails, and Recreation Committee Resolution No. 05-34: Approving Parking Restrictions in the 2005 Red Fox-Grey Fox PMP Area Resolution No. 05-35: Approving the Plans and Specifications and Ordering Advertisement for Bids for the 2005 Pavement Management Program . c. d. e. f. g. MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve thc Consent Calendar and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 4. PUBLIC INOUlRlES/INFORMATIONAL None. 5. PUBLIC HEARINGS None. 6. NEW BUSINESS A. Planninl! Case #05-14: Side Yard Setback Variance -1005 Amble Drive . Mr. Hellegers requested that Council consider the proposed 10-foot side yard setback variance to allow the existing home located at 1105 Amble Drive to remain compliant with City Code . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY 9, 2005 3 while allowing for the expansion of Lexington Avenue. recommended approval ofthe variance as proposed. The Planning Commission MOTION: Councilmember Grant moved and Councilmember Larson seconded a motion to approve Planning Case #05-14: 10-foot Side Yard Setback Variance - 1105 Amble Drive. The motion carried unanimously (5-0). B. Planninl! Case #05-10: Ramsev County Public Works Entrance Sil!n Mr. Hellegers requested that Council consider the requested Sign Standard Adjustment of 130 square feet from the Signage Ordinance criteria for a freestanding monument sign. The Planning Commission recommended denial ofthe Sign Standard Adjustment for the reason noted in staffs May 9, 2005 report. Councilmember Holden asked if the sign was 130 square feet. Mr. Hellegers replied it covered only the sign and not the brick around it. . Councilmember Rem asked if the letters were within the sign ordinance. Mr. Hellegers replied the ordinance did not specifY letter size. Mayor Aplikowski asked if the smaller letters would be back lit. Mr. Hellegers responded only the large letters would be back-lit and the smaller letters would be lit by a couple of external SIgnS. Councilmember Grant stated this had been turned down by the Planning Commission based upon the plan submitted to them at that time, which specified that "Minnesota" be spelled out. He believed the Planning Commission would have looked favorably on this new sign if this plan was available at that time because the size has been reduced by approximately 30 square feet. He indicated this new sign had a nice appearance. He noted the Planning Commission had also inquired about the plantings, and those plantings would be adjusted in the final plan. He indicated while this had not gone back before the Planning Commission, he believed by abbreviating "Minnesota" to "MN" this would have been looked upon positively by the Planning Commission and he was in favor of this new sign. Council member Rem stated with all of the facilities in these buildings, it did not make sense to have a smallcr sign, so she was in favor of this. Councilmember Larson asked if they were acting on an amended sign or the sign request that Planning Commission denied. Mayor Aplikowski replied they were acting on the amended sign presented tonight. . Councilmember Larson statcd he would like this to go back to the Planning Commission. He believed the sign was too big and less infonnation should be put on it. He indicated he would not be in support ofthis amended sign. ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY 9, 2005 Councilmember Grant stated this had been discussed at the Planning Commission meeting and it was deemed that some of the information was critical, such as setting out the Sheriffs Patrol Station for safety reasons. He noted this sign would not compete with other signs in the area because of the amonnt of acreage this facility took up. He stated the only change to the lettering discussion at the Planning Commission was abbreviating "Minnesota" to "MN" in order to reduce the size variance required and he bclieved the Planning Commission would have voted in favor of this with these changes. Bruce Thompson, Assistant Director of Property Management Ramsey Connty, stated there were three reasons they needed a variance. One, they believed it was in the bcst interest of their partnership by requesting this larger sign and while they could meet the ordinance by only putting on Ramsey County, he believed this would bc a disservice to the partners. Two, the Sheriff had specifically asked there be a larger sign for safcty rcasons and having their facility readily identifiable. Third, in designing the sign they used the Traffic Signage Institute's guidelines and the letters on the sign were to be readable for one City block. He indicated by reducing the size of the letters, this would create dangers on the road because people would need to slow down to read the sign. He stated they had listened to the Planning Commission and that was why they reduced "Minnesota" to "MN". He indicated the Minnesota Army National Guard was in favor of the sign and they approved their name being abbreviated to "MN". Councilmember Larson stated he was not opposed to a variancc, but he believed there were ways to do it that did not require as large of a variance. He suggested they use four lines and stack them all up and back light everything. Mr. Thompson replied that with Councilmember Larson's suggestion, a completely new sign would be required if any of the partners were to change their names. He indicated the smaller letters were done in an industrial vinyl, which could be changed without changing the entire sign. Council member Larson stated he would like them not to retain the small letters and only have the large letters and back light all of the letters. Mr. Thompson replied he understood his point, but this would eliminate some ofthe smaller partners. Councilmember Larson stated he did not believe cveryone needed to be listed. He believed this could be done better and smaller. Ramsey County Commissioner Tony Bennett stated thc sign was only 6 foot 2 inches and the Arden Hills City Hall sign also did not meet the ordinance. He stated with one sign, it would be less cluttcred than having individual signs. He noted there was pride among all of the partners that they pulled together these agencies and they needed to let people know that they were there. MOTION: Councilmember Grant moved and Mayor Aplikowski seconded a motion to approve Planning Case #05-10: Ramsey County Public Works Entrance Sign as amended to have "Minnesota" replaced as "MN" in "MN Army National Guard" with the sign standing 6'2", the letters portion of the sign being 23'8", and 3'4" for the sign's 4 . . . . . . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY 9, 2005 5 brick portion, for a total of a 105 foot variance (May 5, 2005 Revised Proposed RCPW Monument Sign plan). The motion carried (4-1) (Councilmember Larson opposed). C, Adopt Chanl!es to the City's Sanitary Sewer Rel!ulations Mr. Clark stated staff was recommending the proposed additional language to help provide clarity for responsibility and enforcement of the City's current regulations. The proposed additions to the sewer regulations will provide clarity for staff to have the owner who was responsible for blocking the sanitary sewer, to either make the necessary repairs/adjustments to their sanitary sewer lines or be able to back charge the owner for all costs incurred by the City to maintain or repair the City's sewer system. MOTION: Councilmember Grant moved and Councilmember Larson seconded a motion to adopt Changes to the City's Sanitary Sewer Regulations in Ordinance No. 362. The motion carried unanimously (5-0). D. Adopt Chanl!es to the City's Liquor Rel!ulations Mr, Clark stated staff was recommending the proposed additional language to help provide clarity for responsibility and enforcement of the City current regulations. The proposed language to the City's liquor regulations would enSnre that the business was in compliance with the most recent fire and life safety regulations before issuance of a liquor license. MOTION: Councilmember Larson moved and Councilmember Grant seconded a motion to adopt Changes to the City's Liquor Regulations in Ordinance No. 363. The motion carried unanimously (5-0). E. Resolution #05-36: Approvinl! the Plans and Specifications and Orderinl! Advertisement for Bids for the 2005 Seal Coat Prol!ram Mr, Brown stated the plans and specifications for the 2005 Seal Coat Program had been completed. The proposed improvements included with the 2005 Seal Coat Project were feasible and were within the budget of the City's Capital Improvement Program. It was recommended that the 2005 Seal Coat Project be advertised for bid. Council would be presented with the bid results and potential contract award at the June 13, 2005 meeting. Staff recommended adoption of the Resolution. MOTION: Councilmember Grant moved and Councilmember Larson seconded a motion to adopt Resolution 05-36 Approving the Plans and Specifications and Ordering Advertisement for Bids for the 2005 Seal Coat Program. The motion carried unanimously (5-0). ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY 9, 2005 6 . 7. UNFINISHED BUSINESS A. Planninl! Case #05-07: Covered Front Porch Ordinance Mr. Hellegers rcquested that the Council consider Ordinance #357 which amended section 6.C2.a of the Zoning Ordinance and insert new section 6.C.2.d into the Zoning Ordinance, allowing for front porches for up to ten feet and with a minimum sctback of 30 feet from the front or side-yard comer property lines, which meet design standards to be allowed subject to staff review and approval. Hc also requested Council consider Resolution #05-29 which added the front porch language and Front Porch Design Guidelines to Appendix A of Zoning Ordinance #291. He noted the Planning Commission unanimously recommended approval of the Zoning Ordinance Amendments as was proposed at that time. Mr. Hellegers indicated at the April 25, 2005 City Council Work Session, the Council directed staff to review language to the base ofthe porch as a solid masonry perimeter and instead to return to the Council with language which allowed for morc flexibility for the porch base. Councilmember Holden noted there were a lot of covered porches with lattice work and they looked nice and she believed this was a good compromise. Councilmember Larson stated the solution to the foundation was a good one, but after giving . this more thought, he would be voting against this because he believed an open porch was preferable in the front yards. He indicated he believed open porches were less obtrusive and they did not have the structure or mass of a porch that was completely screened in. He stated it was important for the City to maintain consistency in the neighborhoods and the front yard setbacks. He indicated he could support an open porch, but not screened in porches. Councilmember Rem statcd she did not understand why anyone would build a structure in Minnesota that was not screened. She did not want to see the screened portion rcmoved. Councilmember Grant noted it was up to the person building the porch if they wanted it screened in or not. He stated he did not want to take the option of a screened-in porch out of this and believed people should have the option of having a screened-in porch ifit made it livable and useful. He indicated he was in favor of leaving the screened porches in. Councilmember Larson noted he was not saying people could not have screencd in porches, but if they wanted a variance for their front yard, he did not believe they should have a screened-in porch, but screened-in porches could be allowed anywhere else on the property. MOTION: Mayor Aplikowski moved and Councilmember Rem seconded a motion to adopt Ordinance #357 which amends section 6.C2.a of the Zoning Ordinance and insert new section 6.C2.d into the . Zoning Ordinance, allowing for !Tont porches of up to ten feet and with a minimum setback of 30 feet from the front or side-yard comer property lines, which meet design standards to be allowed . . . ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY 9, 2005 7 subject to staff review and approval. The motion carried (4-1) (Councilmember Larson opposed). MOTION: Councilmember Rem moved and Mayor Aplikowski seconded a motion to adopt Resolution #05-29 adding the front porch language and Front Porch Design Guidelines to Appendix A of Zoning Ordinance #291. The motion carried (3-2) (Councilmembers Larson and Grant opposed). B. TCAAP Update Mr. Clark updated the Council on recent TCAAP developments. Mayor Aplikowski requested Ms. Wolfe read a letter received by the Mayor of Falcon Heights regarding assertions about their TIP Districts at a recent public hearing. Ms, Wolfe read the letter dated April 29, 2005 from Falcon Heights Mayor Sue Gehrz into the record. C. Affirmation ofEDC Work Plan Priorities Mr. Clark stated at the April 20th Economic Development Commission meeting, the EDC discussed their "work plan" and priorities. He outlined the three items they decided as their main focus for upcoming meetings. Councilmember Holden asked if the EDC would be the ones creating the local resource plan. Mr. Clark replied the EDC would be reviewing the plan and Ehlers & Associates would be drafting the plan, with input from staff and others. He noted thc EDC would only be a recommending body to Council and Council would have the final approval of that plan. Councilmember Larson stated he had spoken with a resident, Ed Robinson, regarding public financing and he believed Mr. Robinson would be a good person to have on the Commission. Mr. Clark noted Mr. Robinson would need to make a formal request and since they had a full EDC at this time, Council would need to amend the By-Laws to increase the nur;lber of members to eight. Councilmember Holden stated she would not have a problem amending the By-Laws. Ms. Wolfe stated staff would prepare an appropriatc agenda item amending the By-Laws for Council's next meeting. Councilmember Larson stated it was not his intent to take any action on this tonight and he believed Mr. Robinson would need to step forward and indicate his interest first. MOTION: CounciImember Larson moved and Councilmembcr Grant seconded a motion to affirm thc EDC Work Plan Priorities as submitted. The motion canied unanimously (5-0). ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES MAY9,2005 8 . CITY COUNCIL REPORTS Ms. Wolfe - None. Councilmember Holden - Asked for an update on the consolidated Dispatch Center. Ms. Wolfe replied with respect to response time with this consolidation, the County has agreed to take over the entire operation and to eventually take over 100 percent of the funding in the future. She noted the County had committed to keeping the same response times as they currently had. Councilmember Grant - Stated the Assessment Policy Task Force would be meeting this Wednesday and they would be discussing refuse hauling. Councilmember Rem - Stated the Flower Planting Day was a week from this Saturday (May 21, 2005) at the Holiday Inn Arden Hills at 9:00 a.m. Conncilmember Larson - None. Mayor Aplikowski - Congratulated David McClung to his appointment to the Planning Commission and Cynthia Wheeler to her appointment to the Parks, Trails, and Recreation . Committee. Mayor Aplikowski adjourned the Regular City Council Meeting at 8:29 p.m. Beverly Aplikowski Mayor Michelle A.Wolfe City Administrator NOTICE OF MEETINGS The next Council Meeting will be held Tuesday, May 31, 2005 at 7:00 p.m. at the Arden Hills Council Chambers. . ~ ~HILLS City 01 Arden Hills Re uest for Council Action Prepared by: Murtuza Siddiqui "" r Depl.: Finance -" Council Mtg. Date: May 31, 2005 Final Action Needed By: May 31, 2005 Agenda Item Claims & Pavroll Budgeted Amount: Across City Budllet - All Funds Actual Amount: See Financial Implications Funding Source: Across City Budllet - All Funds Council Action Request: Review and Approve Consent Agenda Item 3,A. - Claims and Payroll Staff Recommendation: Approve Consent Agenda Item 3,A. - Claims and Payroll Advisory Commission Action: Commission Planning PTRC Date Action Not Applicable Notl'.pplil:ClI:>}~.._..______ Not applicable Supporting Documents (which are attached to this Action Form): . 0 Memo/Letter: o Resolution (No. ) o Ordinance (No. ) o Engineering Recommendation: o Attorney Recommendation: o Other: Payroll and Claims Reports Financial Implications: Payroll #9 Total Cost $68,973.79 Payroll #10 Total Cost $53,436.14 Claims Total $272,245.57 Administrator/Staff Comments: . 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'" .3 ~ . ij ~ * E .= ~ ,; ~ E .~ "ll ~ '" ~ .. ~ . 0 ~ ~ ij- " ~ " ~. 0 . . .~ ... ~ .~ 0 E .. i 0 ~ " ~ '" w 0 i! ~ " 0 ~ 11 "" t- o ~ .?o '" .. ] ] 1!' .~ l i ~ ~ '" ~ 0 ~ 'i . . . . PAGE I OF4 CITY OF ARDEN HILLS ACCOUNTS PAYABLE CLAIMS REPORT TO BE APPROVED AT 05/31/05 COUNCIL MEETING CLAIMS PAID SINCE LAST COUNCIL MEETING 105/09/05\ FFcitiiiichl'. :vENDQif: ."<.>><<>",,,<<<<<<lij(lIloVW<I>t6MlIllij;iW'>'...... . .. 26690 05/10/05 10,000 Lakes Chapter 90.00 Summer Conference-D. Scherbel 26691 05/10/05 Aramark Uniform Service 42.15 CH-Rug Cleaning 26692 05/10105 BFI of MN. Ine 354.21 Waste Removal 26693 0511 0105 Sandra Bvl 43.25 Mileage Reimb 3/01-5104105 26694 05/10105 Chamnlain Planning Press 115.00 Ivr Subscription-Planning Journal 26695 05/10/05 Continental Research Corn 1,326.93 Weed Control-Parks 26696 05/10105 Camorate Exoress 875.40 Office Supplies 26697 0511 0/05 E-Z Recycling, Ine 5,248.00 Curbside Recycling 26698 0511 0/05 Ess Brothers & Sons, Ine 326.96 3075 CCB wIDiap:onal Grate 26699 0511 0105 Flexible Pipe & Tool Comnanv 142.10 LED Light Rings/O.Rings 26700 0511 0105 Frattallonc's Hardware, Ine 73.72 ShOD Suoolies 26701 05/10/05 Grainger, Joe 410.43 Storage Chests~Park.s 26702 05110/05 Bridget Hove 34.00 Refund-Soccerff-Ball Camp 26703 05/10/05 leI DuIux Paint Centers 1,403.24 Field Marking Paint 26704 05/10/05 LU.O.E. Loca149 15,600.00 Union Insurance-Jun-Aul!; 26705 05/10/05 Kath Auto Parts 258.78 Shop Sunnlies 26706 05/10105 Kraus-Anderson 60.00 Refund~Contractor License Fees I Subtotal - Paid Claims 26,404171 Paid Claims - 119,896.67 Add Unpaid Claims, 152348.90 Total Accounts Payable Claims for Council Approval, 05/31/05- 272,245.57 Note: Checks for unpaid claims totaling $165,530.80 were mailed May 10,2005 after approval at the May 9,2005 Council Meeting. *Exp. Related to TeAAP Project. """"i.,"'''"''''p.,....I..',],,;...., PAGE20F4 CITY OF ARDEN HILLS ACCOUNTS PAYABLE CLAIMS REPORT TO BE APPROVED AT 05/31/05 COUNCIL MEETING PAID CLAIMS REGISTER: .....dd..IJ;:i4ii.~iii. ..d. ..... ..... ., ... i\M@N'i' .::::.... .....y. 26707 05110/05 Lakes COWltrv Service Coonerative 10.469.00 Health Insurance 26708 05/10/05 Lillie Suburban Newsnaners 235.00 Ad-Emplovment-O&M 26709 05/10/05 McDonald Battery Company 55.00 Battery #307 26710 05/10/05 John Mennenga 10.00 Seminar-NW BJdg Insp 4/20/05 26711 05/10/05 :MN Dwt of Natural Resources 85.00 Firearm Safety Class 267]2 05/1 0105 MN NCPERS Life Insurance 76.00 Pera Life Insurance 26713 05/10105 :rvtTI DistributmJ!; Co. 927 Rod-ProD, Scat 26714 05/10105 Nextel Communications 540.82 Cell Phone Service 267]5 05/1 0105 Pitney Bowes 1,016.99 Postage-Meter 26716 05/1 0105 Steohen Saxe 34.99 2005 Unifoffil Purchase 26717 05/10/05 Schindler Elevator Corn 596.64 Elevator Maint 5/05-4/06 26718 05/10105 Star Tribune 376.78 Ad-Emnlovmenl.O&M 26719 05/1 0/05 Tessman Seed Com-panv 190.00 Turface Quick Drv 50# 26720 05/10/05 Tokle Inspections, Inc 2,270.40 Electricallnsnections-Anr 26721 0511 0/05 Triarco Arts & Crafts 67.87 Art & Craft SUPDlies 26722 05/10105 United Rentals 4036 Maintenance Supplies 26723 05/10/05 Vermeer Sales & Service 1,222.49 Chipper Repair #85406 26724 05/10/05 Vrooom Auto Care 701.00 Tires #202-Water 26725 05/10/05 Xcel Energy 9,766.11 Electric/Gas Service 26726 05/10/05 Zee Medical Eauinment 119.88 First Aid Supplies 26727 05/13/05 Acclaim Benefits 549.10 FSA Reimb 5/06/05 26728 05/J3/05 Linder's Greenhouses 30936 Holiday Wreaths 26729 05/17/05 Mfmitv Plus Federal Credit Union 3,038.87 Second Mav Payroll 26730 05/J 7/05 leMA Retirement Trust-457 2,248.96 Second Mav Pavroll 26731 05/J 7105 I\.1N Child Sunnort Payment Center 370.64 Second Mav Pavroll 26732 OS/20105 10.000 Lakes Cbanter 120.00 Chanter Education 6/16/05 26733 OS/20105 A-I Contract Cleaning. Ine 1,315.28 CH-Cleanine. 26734 05/20105 Acclaim Benefits 672.50 FSA Administration 26735 05/20/05 Aramark Uniform Service 42.15 CH-RuQ' CleaninQ 26736 05/20/05 BadQ'er Meter, Inc 745.50 Utilitv Service AQreement 5/05-5/06 26737 05/20105 Biffs, Ine 592.12 Portable Toilets 26738 05120105 Lvnn Burwell 1,175.00 Dance Instructor 26739 05120/05 Comorate Exurcss 41.92 Office Supplies 26740 OS/20/05 Davies Water EQuipment 4,816.23 New Water Line & Hydrant-Perry Park 26741 05/20/05 DeeD Rock Water Companv 5932 Soringwater-CH & O&M I Paid Claims - Page 2 43,980.551 . . . PAGE J OF 4 . CITY OF ARDEN HILLS ACCOUNTS PAYABLE CLAIMS REPORT TO BE APPROVED AT 05/31105 COUNCIL MEETING PAID CLAIMS REGISTER: . >~t:~~:::: J~ ~~~~ J;iAtiCI::: :!;~:AMo:Oi'!i1> ~ 26742 OS/20/05 Dell Marketing, LP. 5.646.52 Renlacement PC's-2005 Tech CiP 26743 OS/20/05 Dent of Administration 794.36 Phone Service 26744 OS/20/05 Flexible Pine & Tool Companv 2,686.44 Reoair #308-Sewer 26745 OS/20/05 Kenneth Gammell 845.75 Cable Tech Services 3/02-5/10/05 26746 OS/20/05 Gooher Snon 437.24 Tennis Nets 26747 05/20/05 GrainQ.er, Ine ]46.42 Supplies 26748 OS/20105 Jackie Gritz 10.80 Mile.'e Reimb 5/09/05 26749 05/20105 Hagen, Christensen & McIlwain 182.15 Pem! Park Picnic Shelter 26750 OS/20/05 Health Partners 913.07 Dental Insurance 26751 OS/20/05 ICMA 674.75 Memhershin Renewal 7101105 26752 OS/20105 Ikon Office Solutions 3,870.06 Couier Rental thru 5/23/05 26753 05/20/05 Ingraham & Associates, Inc 443.75 AH Pm-k, Trail & OS Plans 26754 05/20/05 I.U.O.E. Local 49 240.00 Union Dues 26755 OS/20/05 Schawn Johnson 243.03 MileafJe!Exnense Reimb 5/] 1-5/13/05 26756 05/20/05 Labor & Industry 10.00 Shon Comnressor 26757 OS/20/05 Lea~rlle ofJv1N Human RiJilits Commission 55.00 Member Dues 2005 26758 OS/20/05 LiUie Suburban Newsnaners 235.00 Ad-Emnlovment-O&M Maint 26759 05/20/05 Linder's Greenhouses 1,506.79 Flowers-Flower Gardens 26760 OS/20/05 Lk Johanna Imorovement Socie:fv 500.00 Lk Johanna Goose Removal Proiect 2005 26761 OS/20/05 MAMA 18.00 :MAMA Luncheon 4122-?vfW 26762 OS/20105 Michael A MillerlISN 851.00 Umnire Services 4/26-5/12/05 26763 OS/20/05 Midwest Asohalt Comoration 55.66 Road Renair Materials 26764 OS/20/05 MMCVB 6,456.35 Hotel~Motel Tax Return 26765 OS/20/05 MN Dent of Health 23.00 W.ter Suoolv Ooerator Reoewal.jp 26766 OS/20/05 !vITI Distributing Co. 668.65 T oro Repair Materials 26767 OS/20/05 Mary Nosek 150.00 Mav Newsletter 26768 OS/20105 Pace Analytical 20.00 Perrv Park Water Test-CIP Project 26769 OS/20/05 Postmaster~St. Paul 3,000.00 Postae:e-Perrnit # 1962 26770 OS/20/05 Renewal bv Anderson, Ioc 190.94 Refund #B04.8983 26771 OS/20/05 S&S Tree & Horticulture Snec.,lnc 3,468.17 Tree Removal 26772 05/20/05 Spencer Fane Britt & BrO\.\'ne 6,966.81 * TCAAP Legal Fees 4/1-4/30/05 26773 OS/20/05 Star Tribune 1,545.12 Emnlov Ad-O&M Maint 26774 05/20/05 Steichen's SnortinQ: Goods 613 .25 18 doz Softballs 26775 OS/20/05 Tessman Seed Comoanv 2,539.79 SeedfWced Control 26776 OS/20/05 TimeSaver Off Site Secretarial 624.30 Recording Secretary 26777 OS/20/05 Triarco Arts & Crafts 7.27 Art Sunnlies 26778 OS/20/05 United Rentals 187.90 Field MarkulfJ Sunnlies 26779 OS/20/05 West Weld 44.84 Glass Cleaner 26780 OS/20/05 I\1ichelle Wolfe 218.37 2005 MCMA Conf Reimbursement 26781 OS/20/05 Xcel Energy 2.111.04 Electric/Gas Service 26782 OS/25/05 Acclaim Benefits 310.36 FSA Reimbursement 5/20/05 I Paid Claims ~ Page 3 49,511.951 . CITY OF ARDEN HILLS ACCOUNTS PAYABLE CLAIMS REPORT TO BE APPROVED AT 05131105 COUNCIL MEETING UNPAID CLAIMS REGISTER: :<8kjj~: j A!?@~:~~# 26783 26784 26785 26786 06/01105 06/01105 06/01105 06/01105 ...-......_- ..... ....... ., ., .... :<.MdiWNT~::~ Met Council Environmental Semces Rams COUll Peterson, Fram & Ber man URS Co ration Unpaid Claims - Page 4 43,888.06 63,460.25 11.604.73 33,395.86 152,348.90 I Waste Water-June Law Enforcement-Ma Lc Fees-March & A ril Engineering Fees-April PAGE40F4 . . . ~ ~HILLS City of Arden Hills Request for Council Action Prepared by: Murtuza Siddiqui Dept.: Finance Council Mtg. Date: May 31, 2005 Final Action Needed By: 5-31-05 Agenda Item ., 2004 Audit Budgeted Amount: N/A Actual Amount: N/A Funding Source: N/A Council Action Request: Approve the City's 2004 Audit. Staff Recommendation: Staff recommends that the Council approve the 2004 Audited Financial Statements and authorize staff to officially release this document to the public. Advisory Commission Action: Commission Date Action Not Supporting Documents (which are attached to this Action Form): . [8J Memo/Letter: Memo dated May 23, 2005 o Resolution (No. ) o Ordinance (No. ) o Engineering Recommendation: o Attorney Recommendation: o Other: Financial Implications: N/A Administrator/Staff Comments: . Page 1 of 1 . . e ~ ~~HILLS MEMORANDUM DATE: May 23,2005 Agenda Item: 3.B TO: Honorable Mayor and City Council FROM: Murtuza Siddiqui, Finance Director/Treasurer~~ SUBJECT: 2004 Audited Financial Statements BACKGROUND: The City of Arden Hills, each year, hires an independent audit firm to audit the City's financial records and issue the financial statements. The City hired Abdo, Eick, & Meyers to conduct this audit. They have been the City's auditors for the past few years. DISCUSSION: I am pleased to inform that the City of Arden Hills has received an "unqualified (clean) opinion" from the audit firm. The City has also implemented new GASB 34 rule for the December 31, 2004 statements. The main change resulting from the implementation was issuing financial statements under a new reporting model. Overall, 2004 was a good year for the City. The revenues came in slightly over the budget and expenditures were under the budget. As a result of operating efficiencies, the city added about $200,000 to its general fund balance. Steve McDonald, Abdo, Eick, & Meyers presented the audit at the May Council Work Session. Mr. McDonald explained the key features of the changes that resulted from the implementation ofGASB 34 rule. RECOMMENDED ACTION: Staff recommends that the Council approve the 2004 Audit as presented. Cmified Puhlic Accoumants & Consulfmlts March 24, 2005 GranJview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 Our Responsibility Under Auditing Standards Generally Accepted in the r 31,2004 e following Honorable Mayor and Council City of Arden Hills, Minnesota We have audited the fInancial statements of the City of Arden Hills, and have issued our report thereon dated March 24,2005. Profes information related to our audit. . As stated in our engagement letter, our responsibility, obtain reasonable~ but not absolute, assurance that the fi presented in accordance with accounting principles genera desi,!:,TJ1cd to provide reasonable, but not absolute, assurance transactions, there is a risk that material errors, fraud or illeg S, is to plan and perform our audit to '~statement and are fairly erica. Because an audit is ot perfo a detailed examination of all eteeted by us. e City, for year ended ermine our auditing procedures for the purpose of expressing n the internal control. However, we noted certain matters able conditions under standards established by the ons involve matters coming to our attention relating to that, in our judgment, could adversely affect the City's ability with the assertions of management in the fmaneial statements. Our studY duties. Goo from inception duties in all respec t becatis"e of the limited size of your office staff, the City has limited segregation of "lates an adequate segregation of duties so that no one individual handles a transaction e recognize that the City is not large enough to pennit an adequate segregation of ,however, that you be aware of this condition. ~ondition in which the design or operation of one or more of the internal control components does not reduce to a relativelY,..l' level the risk that errors or fraud in amounts that would be material in relation to the financial statements being audited may "occur and not be detected within a timely period by employees in the Donnal course of perfonning their assigned functions. Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material . weaknesses as defined above. However, the reportable condition described above is not believed to be a material weakness. 952.835.9090 . EiX 952.835.3261 www.aerncp<ls.com City of Arden HittllS March 24, 20 Page Tw As part of obtaining reasonable assurance about whether the [mancial statements are free of material misstatement, we performed tests of compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. We noted one instance of non-co e "With Mirmesota statutes noted below: Management has the responsibility for selection and use of appropriate acco engagement letter, we will advise management about the appropriateness of ac significant accounting policies used by the City are d ed in Note I to the fi were adopted and the application of existing policies nged during 2004. City during the year that were both significant and unusu . 'ch, under profess you, or transactions for which there is a lack of authoritati sensus, Collateral Coverage In accordance with Minnesota statute, section 118A.03, the City is required t the deposits not covered with insurance. The City had adequate collater December 31, 2004, the City did not have any collateral pledged. discovery. teral equal to I 10 percent of r 30, 2004, but at ituation upon Significant Accounting Policies ies_ ""In accordance with the temIS of our policies and their application. The tatements_ No new accounting policies ted no transactions entered into by the aIds, we 3re required to inform Accounting Estimates . Accounting estimates are an inte knowledge and experience a particularly sensitive beca affecting them may differ ;igni capital asset basis and depreciatio repared by agement and are based on management's . ons about future events. Certain accounting estimates are Is and because of the possibility that future events 'ficant estimate affecting the fmanciaJ statements were d on es d historical cost and the estimate of depreciation is based on the ed the key factors and assumptions used to develop these accounting estimates ancial statements taken as a whole, For pnrposes oft dards define an audit adjustment as a proposed correction of the combined [mancial statements that, in 0 ave been detected except through our auditing procedures. An audit adjustment mayor may not indicate matt a significant effect on the City's [mancial reporting process (that is, cause future fmancial statements to be materiall n our judgment, none of the adjustments we proposed, whether recorded or unrecorded by the City, either individually 0 .e aggregate, indicate matters that could have a significant effect on the City's [mancial reporting process. W c did pr~,. e 24 journal entries that are considered year end accounting entries that a City should make in order to have accurate records before an audit begins. Vl e encourage the City to reduce the accounting entries necessary to adjust year end balances. We noted no uncorrected misstatements. Disagreements with Management For purposes of this letter, professional standards defme a disagreement with management as a matter, whether or not resolved to. our satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the [mancial statemen or the auditor's report. \Ve are pleased to report that no such disagreements arose during the course of our audit. 952.835.9090 . Fax 952.835.3261 www.aemcpas.com City of Arden Hills March 24, 2005 Page Three Consultations with Other Independent Accountants . Governmental Accounting In some cases, management may decide to consult with other accountants about auditing and obtaining a "second opinion)' on certain situations. If a consultation involves application 0 rmancial statements or a determination of the type of auditor's opinion that may be expr standards require the consulting accountant to check with us to determine that the co knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention ofIudepeudent Auditors We generally discuss a variety of matters, including the application of management each year prior to retention as the City's auditors. Ho professional relationship and our responses were not a condition 0 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing Other Matters As mentioned previously; The main change res features of this mode{are s ent No. 34 for the December 31, 2004 financial statements. ial statements under a new reporting model. The main . that builds upon traditional fund based fmancial statements. The government- . . e a mOTe concise view of the government as a single unified entity. vemme activities. The City now has fixed assets, bonds and compensated absences et Assets for governmental activities. The addition of this information should help w of the fInancial data. . A distinctJ criteria to be Authority, Non- governmental f and nonmajor funds. More information is provided on individual funds that meet the major funds. The General, Tax Increment Bonds of 1998A, Economic Development able Road Improvements, and Permanent Improvement Revolving are considered major . Budgeting analysis that considers both the adopted and final budget. . 9S2.8RS.9090 . Fm 952.835.3261 WVlo"W,aemcpas.com City of Arden Hi~ March 24, 20CW Page Four Financial Position and Results of Operations General Fund which are not required legally or ce increased $200,090 from ecounnend the ftmd balance be June. We feel a reserve of g capital and small The General ftmd is used to account for resources traditionally associated with gov by sound principal management to be accounted for in another ftmd. The Gener 2003. The ftmd balance of$I,314,929 is 41 percent of the 2005 budgeted ex maintained at a level sufficient to fund operations until the major revenue sou approximately 40 to 50 percent of planned expenditures and transfers 0 emergency needs. The Minnesota Office of the State Auditor has classified cities' follows: Extremely low Low Acceptable Moderately high High Very high Extremely high Under 20% 21 - 34 35 - 50 51- 64 65 - 100 101-150 Above 150 . en making this calculation where our no legislati regulating ftmd balance, it is a good policy to n concerns as to the use of fund balance and tax levels. The State Auditor does group calculation is based only OIL designate intended use 0 . 952.8~S.9090 . Fax 952.835.:~261 wwv,.".aemcpas.com . . City of Arden Hills March 24, 2005 Page Five A table summarizing the General fund balance in relation to budget follows: Year Unreserved Fund Balance December 31 2000 2001 2002 2003 2004 $ 601,394 713,704 753,172 1,114,839 1,314,929 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 952.835.9090 . Fax 952.835.3261 www.acmcpas.com Budget Year Percent of Fund Balance to Budget % $3,239,930 41% 38% 2001 2002 2003 2004 2005 ....... Actual Fund Balance ~Budget City of Arden Hi_llS March 24, 20 Page Si The purposes and benefits of a Genera] fund balance are as follows: . Expenditures are incurred somewhat evenly throughout the year. However, pr received until the second half of the year. An adequate fund balance will pr General fund expenditures. Purposes and Benefits . The City is vulnerable to legislative actions at the State and Federa legislative session and imposed reductions of market value ered" limits have also been implemented for municipalities in past a temporary buffer against those aid adjustments and levy" CA aid with the 200] me cities. Levy ance will provide . Expenditures not anticipated at the time the annual budget was would include capital outlay replacement, lawsuits and other items.' needed for such expenditures. . A strong fund balance will assist the City in The 2004 operations are summarized as follows: Variance with . Final Budget - Positive Actua] (Negative) 2,875,931 $ 3,]4],020 $ 265,089 2,998,288 2,82] ,240 177,048 (122,357) 3]9,780 442,137 42,000 42,000 (147,938) (16],690) (13,752) $ (228,295) 200,090 $ 428,385 ],114,839 $ ],3]4,929 Fund balances, December 3], 2004 . The largest item of variance on the revenue side was licenses and permits. This item had a favorable variance of $150,863 or 57 percent of the total revenue variance. . 952.835.9090 . Fax 952.8.'35.3261 www.aemcpas.com .1 f'1i.~ City of Arden Hills March 24, 2005 Page Seven A comparison between 2004 and 2003 revenues and transfers is presented below: Percent of Source 2004 Total Increase (Decrease) From 2003 $ 6 31,3 8,299 105,095 554,155 3,727,539 $ (544,519) Taxes Licenses and pennits Intergoverrunental Charges for services Fines and forfeitures Interest on investment Miscellaneous Transfers in $ 2,244,078 510,963 77,631 144,869 43,055 23,376 97,04 42,000 Total revenues and transfers A graphical presentation of 2004 revenues and tra . Misce 3.0' Interest on mv 0.7%Fi \ \ \ \ Licenses and pennits d' "tur J \ Intergovernmental 16 1 % lorlCl es L . Charges for services 2.4% 4.6% . 952.835,9090 . Fax 952.8.35.3261 www.aemcpas.CQm City of Arden Hills Marcb 24, 200A Page Eigh'" A comparison between 2004 and 2003 expenditures and transfers is presented below: A graphical presentation of 2004 expcnditures and tra Program 2004 Percent of Total Current General government Public safety Public works Culture and recreation Economic development Total current $ 823,980 1,130,919 386,427 374,473 42,20 2,758,0 6 Increase (Decrease) From 2003 $ 72,081 54,909 ( 603,079) 141,116 42,207 3,050,772 (292,766) 96,155 (32,921) 218,945 (57,255) $ (382,942) . Capital outlay Transfers out T otaI expenditures and transfers Public works 13.0% . 952.835.9090 . Fax 952.835.3261 w'ww.aemcpas.com . . Debt Service Funds City of Arden Hills March 24, 2005 Page Nine Debt service fimds are used to account for the payment of long-term debt priucipal and i not report the outstanding debt as a liability of the fund except for debt paid from ent summary of the assets accumulated in each debt service fund and the related long-t Debt Description G.O. Tax Increment Bonds Tax Increment Bonds of 1998A Special Revenue Funds Total Cash Final Maturity Date A comparative summary of year end fund balanc ,---- i.2004 ,.2003 5(14,870) 54,]82 952.835.9090 . Fax 952.83.'i.3261 ....c-ww.aemcpas_com $. -------- 5(13,752) $23] ,048 $553,081 $275,653 $147,532 $248,425 -----~.-._...- -..-- $267,488 $258,722 _L__S228,684 $(454,660) $(685,73]) I City of Arden Hi:' March 24, 20W Page Ten Community Service This fund will provide for various parks, recreation and public safety needs in the co Council and pennitted by statute. Recreation Program The surrnner playground activities of this fund were reclassified from the was made to reduce the fund deficit to $13,752. Park This fund is used to finance and plan future new park ca dedication fees_ Cable TV The fund balance is expected to be used for ca TeAAP . The fund balance is expected to be used for future d Risk Management The revenue will come from insurance dividends received d activity for the first time in 1997 and will account for tax increments and ntlRedevelopment TIF capital projects fund was closed into this fund in . 952.S;{5.9090 . Fax 952.835.3261 www.uemcpas.com . . . Capital Projects Funds City of Arden Hills March 24, 2005 Page Eleven These funds accumulate resources to finance major capital acquisition and construction pI fund balances (deficits) follows: Fund Major Non-Assessable Road Improvements Permanent Improvement Revolving Subtotal Nonmajor Municipal Land and Buildings Capital Equipment Public Safety Capital Equipment Subtotal Total . A recap of each fund and Increase (Decrease ) 7,944,488 82,310 4,053 40,944 538,104 127,307 $ 8,482,592 $ (1,461,556) resources to the original funding source or to a permanent s $4,79 , of which $838,955 represents the amount ofthe unpaid advance to the relate,. the acquisitions of the Indy Kiewicz property. This entire advance is und fro~ Ramsey County reimbursement and remnant parcel sale proceeds. Interest rove existing City buildings or provide for new buildings. The deficit should be eliminated ds. Capital Equipment Its purpose will be to accwnulate resources to finance major equipment purchases. Public Safety Capital Equipment The fund balancc will be used for equipment replacement. 952.835.9090 . Fax 952.83.').3261 ViWw.aemcpas.com City of Arden Hills March 24, 200. Page Twelv Enterprise Fnnds $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Water Fund The results of the operations and cash position of the Water fund for the past [, . 2003 2004 .& 976,107 $951,524 $24,583 $ 1 ,465,220 $1,115,163 $1,093,342 $21,821 $1,569,978 $1,000,507 $1,201,108 - ,-,--------_.._---- $(200,601) $1,104,910 -k gins l1ave been sufficient to meet working capital and major repair needs. . 952.835.9090 . Fax 952.835.3261 www.aenlCpas.com City of Arden Hills April I , 2004 Page Thirteen Sewer Fund Sewer Fund The results of the operations and cash position of the Sewer fund for the past foor ye . $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 2003 2004 , 87 $848,976 $935,207 91,908 $1,096,590 $1,081,068 $(117,921) $(247,614) $(145,861) $1,562,147 $958,132 $620,489 ---------- -~~~~- ncrease in operating expenses from 2002. This also resulted in the . 952.835.9090 . Fax 952.835.3261 'w\\rw.aemcpas.com Recycling Fund The results of the operations and cash position of the Recycling fimd for the past fo Recycling Fund $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- $(20,000) 9S2.8n.;).9090 . .Fax 952.835.3261 www.aemcpw.;.com City of Arden Hi~ March 24, 20'W Page Fourteen . 2003 $107,986 $97,471 --------- $16,536 $27,051 $21,544 2004 $102,631 $78,761 $18,493 $42,363 $52,993 . City of Arden Hills March 24, 2005 Page Fifteen Surface Water Management Fund . $200,000 e past four years are as The results of the operations and cash position of the Surface Water Management follows: $600,000 $500,000 $400,000 $300,000 2002 2003 2004 $208,536 $178,782 $191,346 $94,367 $97,656 $97,515 ~ $114,169 $81,126 $93,831 - --- $567,804 $334,342 $139,911 . 952.835.9090 . Fax 952.835.3261 www..aemcpas.com . City of Arden Hi.l March 24, 20 Page Sixtee This report is intended solely for the information and use of management, Council and and is not intended to be and should not be used by anyone other than these specified * * * * * Our audit would not necessarily disclose all weaknesses in the system because it records and related data. The comments and recommendations in the Tepa in this context. tests of the accounting lure, and should be read If you have any questions or wish to discuss any of the items conta' convenience. We wish to thank you for the opportunity to be of your staff. March 24, 2005 Minneapolis, Minnesota . . 952.8;15.9090 . Fax 9S2.S;-t'i.B261 www.aem{:pa~.COJJl , ) r;e , i !l [I DRAFT j] 1I II CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA ANNUAL FINANCIAL REPORT !l YEAR ENDED DECEMBER 31, 2004 '..1 I , LI. 1] L u n u IJ U U u. U '1 ! I lie f 1 i j 1. INTRODUCTORY SECTION CITY OF ARDEN HILLS, MINNESOTA ANNUAL FINA}ilCAL REPORT DECEMBER 31,2004 TABLE OF CONTENTS II Elected and Appointed Officials 11. FINANCIAL SECTION n lJ Independent Auditor's Report Management's Discussion and Analysis rJ Basic Finaocial Statements Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Finaocial Statements Governmental Funds Balance Sheet Reconciliation of the Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) to the Statement of Activities General and Economic Development Authority Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)- Budget and Actual Proprietary Funds Statement of Net Assets Statement of Revenues, Expenses and Changes in Fund Net Assets Statement of Cash Flows Notes to Financial Statements n 1i n n u. u [] Combining and Individual Fund Statements and Schedules Norunajor Governmental Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Norunajor Special Revenue Funds Combining Balance Sheet Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Norunajor Capital Projects Funds Combining Balance Sheet Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) Norunajor Proprietary Funds Combining Statement of Net Assets Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Combining Statement of Cash Flows General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Tax Capacity, Tax Levies and Tax Capacity Rates [] u fI u II u. III. OTHER REPORT Report on Minnesota Legal Compliance Schedule of Findings J Page No. 2-3 I-XI 4 5 6-7 8 9 -10 11 12-13 14 15 16 -17 18 - 33 34 35 36-37 38 - 39 40 41 42 43 44.45 46-49 50 51 52 ~-1 I. i1 j I 'j ; I DRAFT n Ll INTRODUCTORY SECTION I] U I] n. U CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA YEAR ENDED DECEMBER 31,2004 fl U [] '..1 , i , i I , [j lJ. I 1 , ~- \ J. ~ 1 ; ~ < } I : i il n 1 j !.J L q I, II n !l. [J u f! u lJ [] lJ lJ I' i i Lj I. Ll CITY OF ARDEN HILLS, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 2004 ELECTED OFFICIALS Name Title Term Expires Bev Aplikowski David Grant Brenda Holden Gregg Larson Lois Rem Mayor Council Member Council Member Council Member Council Member 12/31/06 12/31/04 12/31/04 12/31/06 12/31/06 APPOINTED OFFICIALS Michelle Wolfe Murtuza Siddiqui Jerome Filla City Administrator Finance Director City Attorney -1- n !l. . . n n n DRAFT n FINANCIAL SECTION n CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA [J [] u. [J II rJ l] J J J J. I J YEAR ENDED DECEMBER 31, 2004 I 1.1 , !, I] L n [] [] [J 'I. L [J 1.1 , [J 1I lJ u lJ. II i I lj. 1 I Civic Center Plaza Suite 300 P.O. Box 3166 Mankato, MN 56002-3166 INDEPENDENT AUDITOR'S REPORT DRAFT Honorable Mayor and Council City of Arden Hills Arden Hills, Minnesota We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fimd, and the aggregate remaining fimd information of the City of Arden Hills, Minnesota (the City), as of and for the year ended December 31,2004, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these fmancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of Aroerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fInancial statements are free of material misstatement. An audit includes exaroining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fimd, and the aggregate remaining fimd information of the City as of December 31, 2004, and the respective changes in fInancial position and cash flows, where applicable, thereoffor the year then ended in conformity with accounting principles generally accepted in the United States of Aroerica. As described in Note 6, the City has implemented a new fInancial reporting model, as required by the provisions of GASB Statement No. 34~ Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of December 31, 2004. The management's discussion and analysis on pages I through X is not a required part of the basic fmancial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We bave applied certain limited procedures, whicb consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information, However, we did not audit the information and express no opinion on it. 507.625.2727 . Fax 507.388.9139 www_aemcpas_com f1 [] n [] n [1 fl. o [] [] u u u !J u. J Page Two Our audit was performed for the purpose of forming opinions on the fmancial statements that collectively comprise the City's basic fInancial statements, The combining aod individual fimd financial statements and schedules are presented for purposes of additional analysis aod are not a required part of the basic fmancial statements. The combining and individual fimd financial statements aod schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statement and, accordingly, we express no opinion on it. DRAFT March 24, 2005 Minneapolis, Minnesota ABDO, EICK & MEYERS, LLP Certified Public Accountants 507.625.2727 . Fax 507.388.9139 www.aerncpas.com .'-' , ,1 i n 11. n II [I 11 II DRAFT GOVERNMENT-WIDE FINANCIAL STATEMENTS [J CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA [J [] 1-- YEAR ENDED DECEMBER 31, 2004 n [l [J II [J [J U u. u CITY OF ARDEN HILLS, MINNESOTA STATEMENT OF NET ASSETS DECEMBER 31, 2004 Governmental Activities ASSETS Cash and cash equivalents Receivables Accrued interest Delinquent taxes Accounts Special assessments Due from other governments Inventories Prepaid expense Unamortized bond discount Capital assets Land and construction work in process Depreciable buildings, property, and equipment, net $ 12,369,731 48,217 89,648 18,928 516,657 88,230 23,573 28,832 4,642,652 6,513,722 TOTAL ASSETS 24,340,190 LIABILITIES Accounts payable Accrued salaries payable Due to other governments Accrued interest payable Unearned revenue Long-term liabilities Due within one year Compensated absences Bonds payable Due in more than one year Compensated absences Bonds payable 706,661 17,097 662,750 60,298 37,818 69,868 2,545,000 23,289 2,395,000 TOTAL LIABILITIES 6,517,781 NET ASSETS Invested in capital assets, net of related debt Restricted for Debt service Umestricted 6,245,206 2,342,323 9,234,880 TOTAL NET ASSETS $ 17,822,409 The notes to the financial statements are an integral part to tbis statement. -4- Business-type Activities $ 1,889,164 8,411 256,355 101,841 11,606 1,430 1,046,429 8,398,548 11,713,784 43,134 9,397 139,870 39,609 13 ,203 245,213 9,444,977 2,023,594 $ 11,468,571 Total 'j , e 'l i , ! $ 14,258,895 56,628 89,648 275,283 618,498 88,230 11 ,606 25,003 28,832 ] rl 11 5,689,081 j] 14,912,270 ! 1 eJ 36,053,974 :1 749,795 26,494 802,620. 60,298 37,818 ) 109,477 ;J 2,545,000 ,I 36,492 2,395,000 6,762,994 , ] 15,690,183 ;] 2,342,323 11,258,474 I , I $ 29,290,980 j , ; ) , I I . 1 1 I 1. [1 I 11 n lJ [] [] II. [J 11 u 1I IJ I] L [ I l. IJ '-J l. .0: b "''''<>: UlUlUl ~~~ :;EPt! u5'U~ ....1.0:0 ....1...0 5:0", ZbCl "'~~ ~:;E<>: .o:~.o: ....o:E:l Obr >-"'Ul i:: ?i U ,. o ... -0 C " 00 " II " 00 c 00 ~ <<: " " o.:z o;'c 00 .- ~ ~ 0. >< C c~ llU Z .,. o o '" '" '" ~ " ~.~ ~ :~ c u .~ < "" '" 5 .~ 6" ~ u 1',<<: o 00 -0 C '3 ~ .g - "' " g.~E U~g U " " c 00 OJ CD "1::;\ t=: i; ~ s::: .9: ~ -.g : "5 6 ~ - .0 to;j ~ ~ 't:: oog g U 0.. ~ 8 ~ 00 " ~'> ~ ~ " " ""'" U ~ 00 .~ :~ E<Il 1: -0 " '" ~ E ':g o E c d: ~ !'.j ~ ~ E C >. E .S a 0' u 6 c._ 0 ~;i:. ~2N~:;:' Mr--l/)"'=tO o~r-:.oo~'<::t 00 r-oor-.nC""i r--O M- t:-e'<::t~c.~ ~ '" '" o;-~~ c- V> .,. 0'" '" ....: N '-.D~ 0'" t- :::....... 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(0"., o o 00 t- '" ~ "' II "' "' " II c _S " OIl c " "" U o "', o '" '" '" 00 o "', .,. o o '" 00 -0 " ;j t; " ~ 00 '" - E '" " ~ ~ ~ :& 8 '" " -0 Cl .; .g ~ d) (\) I) ~ p.. ~ '" ~ '" o .C 0.. '" ~ '" => c '" ~ ~ " z ~ '" '" ",' '" '" o 00 '" o '" '" '" '" '" t- V> 00 '" .,., - '" 0> o .,. N '" 00 ,.: - '" , V> , ~ " z ;:j " 6 " 11 00 "' :s s to " 0. ], " .5 c '" " 1;; "' ~ " 11 00 '" .5 c '" c '" " '<5 S 00 " " c " ~ ! i INTENTIONALLY '"-., I . , I :1 II 1 U q , , II e ,j :1 \) I] THIS PAGE IS LEFT BLANK I , j , 1 \ , 1 , I . , j I 1 ) I j .'1 \. I ! C] i1 I J ] 'I. I ] ] J J ] J. J J DRAFT FUND FINANCIAL STATEMENTS CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA YEAR ENDED DECEMBER 31, 2004 ----.-.- , 1 '. CITY OF ARDEN HILLS, MINNESOTA J BALANCE SHEET ~ GOVERNMENTAL FUNDS DECEMBER 31, 2004 Tax '1 Increment Economic :I Bonds Development General of1998A Authority U ASSETS Cash and cash equivalents $ 1,472,597 $ 2,373,781 $ 372,966 Receivables n Interest 6,219 8 11,858 Delinquent taxes 28,914 60,734 Accounts 3,482 n Special assessments Due from other governments 50,872 Advance to other fimds Prepaid items 23,573 11 TOTAL ASSETS $ 1,585,657 $ 2,373,789 $ 445,558 LIABILITIES AND FUND BALANCES (DEFICITS) n LIABILITIES Accounts and contracts payable $ 139,265 $ $ U Advance from other fimds 838,955 Due to other governments 65,871 Accrued salaries payable 15,344 529_ Deferred revenue 50,248 60,734 . TOTAL LIABILITIES 270,728 900,218 ;l FUND BALANCES (DEFICITS) Reserved for Prepaid items 23,573 11 Compensated absences 93,157 , Debt service 2,373,789 Advance to other fimds II Unreserved, reported in General fimd 1,198,199 Special revenue funds (454,660) lJ Capital project fimds TOTAL FUND BALANCES (DEFICITS) 1,314,929 2,373,789 (454,660) U TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $ 1,585,657 $ 2,373,789 $ 445,558 ; ] i 1 , ,(1 ~ The notes to the fmancial statements are an integral part of this statement. U -6- ,,--j 1 i. Non- Other Assessable Permanent Nomnajor Total Road Improvement Governmental Governmental ") Improvements Revolving Funds Funds I $ 1,553,056 $ 4,950,684 $ 1,646,647 $ 12,369,731 II 6,702 16,350 7,080 48,217 89,648 I 15,446 18,928 516,657 516,657 37,358 88,230 1 838,955 838,955 23,573 I $ 1,559,758 $ 6,360,004 $ 1,669,173 $ 13,993,939 J $ 2,693 $ 449,953 $ 114,750 $ 706,661 838,955 11. 596,879 662,750 1,224 17,097 514,612 625,594 i] 2,693 1,561,444 115,974 2,851,057 U 23,573 93,157 U 2,373,789 838,955 838,955 lJ ],198,199 887,788 433,128 1,557,065 3,959,605 665,411 6,182,081 [J 1,557,065 4,798,560 1,553,199 11,142,882 $ 1,559,758 $ 6,360,004 $ 1,669,173 $ 13,993,939 !J u. lJ II -7- L, r '~ j I. INTENTIONALLY 11 . 1) : J 1I TJ 1 J1 II II THIS PAGE IS LEFT BLANK n iJ - < I , I :1 :1 I I , 1 I , , , . I I. I , I Uj J 1 I ] I. I J :1 <1 u : I u. i I LJ 1I CITY OF ARDEN HILLS, MINNESOTA RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS DECEMBER 31, 2004 Total fimd balances - governmental fimds $ 11,142,882 Aroounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not [mandaI resources and therefore are not reported as assets in governmental funds. Cost of capital assets Less: accumulated depreciation 12,280,884 (1,124,510) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the fimds, Long-term liabilities at year-end consist of: Compensated absences Bond principal payable Less bond discount Det of accwnulated amortization (93,157) (4,940,000) 28,832 Delinquent property taxes receivable will be collected this year, hut are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the fimds. 73,164 Delinquent special assessments receivable will be collected this year, hut are not avai~able soon enough to pay for the current periodts expenditures., and therefore are deferred in the fimds. 514,612 Governmental fimds do not report a liability for accrued interest until due and payable (60,298) Total Det assets - governmental activities $ 17,822,409 '!be notes to the fmancial statements are an integral part of this statement. -8- I. I Non- Other Assessable Permanent Nonmajor Total I Road Improvement Goverrnnental Goverrnnental Improvements Revolving Fuods Funds $ $ 651 $ 56,593 $ 2,898,769 I 510,963 77,826 144,869 ] 43,055 235,803 235,803 43,525 141,675 43,112 283,525 ] 219,084 316,132 43,525 378,129 318,789 4,510,942 I ] 823,980 1,130,919 386,427 ]. 53,662 428,135 152,165 269, III 269,111 62,955 1,947,562 399,016 2,472,767 ] 170,000 141,582 ] 62,955 1,947,562 721,789 5,975,086 ] (19,430) (1,569,433) (403,000) (1,464,144) J 189,690 520,140 2,395,000 J (70,000) (520,140) 119,690 2,395,000 ] (19,430) (1,569,433) (283,310) 930,856 1,576,495 6,367,993 1,836,509 10,212,026 J $ 1,557,065 $ 4,798,560 $ 1,553,199 $ 11,142,882 J. " -10- - -------.-------- , 1 - '-1 , j I INTENTIONALLY lj )] Il U U - :1 j I , 1 THIS PAGE IS LEFT BLANK I ; U . I I ) ,j ! , ~ rJ ! , Ii. 11 II 1"1 11 I" i1 [] [1 D. u u u [] u IJ u. u 11 LJ CITY OF ARDEN HILLS, MINNESOTA RECONCILIA DON OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31,2004 Total net change in fimd balances - governmental fimds Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported in governmental fimds as expenditures. However in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlay Depreciation expense The issuance of bonds provides current financial resources to governmental funds. while the repayment of the principal oflong-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Also. governmental funds report the effect of issuance costs, premiums discounts. and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The arnouots below are the effect of these differences in the treatment oflong-term debt and related items. Debt issued Less bond issuance costs Principal repayments Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources, In the statement of activities, however interest expense is recognized as the mterest accrues, regardless of when it is due. Delinquent receivables will be collected this year, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the fimds. Special assessments Property taxes Certain assets of the Enterprise fimds were purchased by governmental fimds. The expense is recorded in the fund statements by the govenunental funds, however a transfer is sho'ND. in the government-wide statements to record the asset in the business-type activities. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences Change in net assets - governmental activities The notes to the financial statements are an integral part of this statement. -11- $ 930,856 1,326,527 (358,069) (2,395,000) 28,832 170,000 (9,509) (41,963) 15,562 (30,762) (14,480) $ (378,006) -12- i-J !I \ I r. [! Economic Development Authority Fund U Variance with Budgeted Amounts Final Budget - Actual Positive II Original Final Amounts (Negative) $ 407,450 $ 407,450 $ 597,447 $ 189,997 n 195 195 n 3,700 3,700 31,837 28,137 .i li 411,150 411,150 629,479 218,329 l! . [I 157,659 157,659 109,958 47,701 U 157,659 157,659 109,958 47,701 I; 253,491 253,491 519,521 266,030 Ii (288,450) (288,450) (288,450) I, (288,450) (288,450) (288,450) (34,959) (34,959) 231,071 266,030 ( , I , ( (685,731) (685,73]) (685,73 ]) $ (720,690) $ (720,690) $ (454,660) $ 266,030 I l , i t. -13- 11 CITY OF ARDEN HILLS, MINNESOTA 1\ STATEMENT OF NET ASSETS PROPRIETARY FUNDS ti DECEMBER 31,2004 Other n Nonmajor Total Propri etary Proprietary Water Sewer Funds Funds U ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,104,910 $ 620,489 $ 163,765 $ 1,889,164 n Receivables Interest 4,258 3,522 631 8,411 Accounts 113,477 119,587 23,291 256,355 Special assessments 12,438 12,438 76,965 101,841 II Inventory 11,606 11,606 Prepaid items 715 715 1,430 TOTAL CURRENT ASSETS 1,247,404 756,75] 264,652 2,268,807 fI NONCURRENT ASSETS U Capital assets Buildings 2,220 ],950 4,170 Machinery and equipment 323,032 610,453 50,820 984,305 [ ~ Construction in progress 178,724 195,657 672,048 1,046,429 Infrastructure 6,512,929 5,229,184 148,442 11,890,555 Less accumulated depreciation (1,880,442) (2,545,801 ) (54,239) (4,480,482 TOTAL NONCURRENT ASSETS 5,136,463 3,491,443 817,071 9,444,977 TOTAL ASSETS 6,383,867 4,248,194 1,081,723 11,713,784 11 J LIABILITIES CURRENT LIABILITIES !l Accounts payable 18,947 17,997 6,190 43,134 Due to other governments 139,870 139,870 Accrued salaries payable 3,496 4,275 1,626 9,397 II Compensated absences 14,374 17,335 7,900 39,609 TOTAL CURRENT LIABILITIES 176,687 39,607 15,716 232,010 NONCURRENT LIABILITIES I; Compensated absences 4,791 5,779 2,633 13,203 TOTAL LIABILITIES 181,478 45,386 18,349 245,213 I: NET ASSETS I Invested in capital assets, net ofre1ated debt 5,136,463 3,491,443 817,071 9,444,977 Unrestricted 1,065,926 711,365 246,303 2,023,594 I TOTAL NET ASSETS $ 6,202,389 $ 4,202,808 $ J,063,374 $ 11,468,57l .' , The notes to the financial statements aTe an integral part of this statement. ~ , -14- n I 1.\ \ ) CITY OF ARDEN HILLS, MINNESOTA II. STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR TIffi YEAR ENDED DECEMBER 3], 2004 Ii Other I: Nonrnajor Total Proprietary Proprietary f' Water Sewer Funds Funds OPERATING REVENUES Charges for services $ 998,732 $ 813,109 $ 260,733 $ 2,072,574 I' Permit fees 1,775 630 2,405 I: Miscellaneous 121,468 4,105 125,573 TOTAL OPERATING REVENUES 1,000,507 935,207 264,838 2,200,552 I' , i OPERATING EXPENSES Personal services 213,395 252,204 93,497 559,096 [' Supplies and maintenance 30,512 17,417 2,045 49,974 I Other services and charges 59,176 29,673 14,641 ] 03,490 I, Rent ]6,995 16,995 33,990 ( ': Insurance 17,917 17,917 35,834 I Utilities II ,275 24,645 35,920 Purchased services 22,900 ] 1,882 34,782 Purchased water 663,269 663,269 I' Recycling charges 64,070 64,070 Sewer charges 582,027 582,027 I:. Depreciation 165,669 128,308 2,023 296,000 TOTAL OPERATING EXPENSES 1,201,108 1,081,068 176,276 2,458,452 1\ [ : OPERATING INCOME (LOSS) (200,601) (145,861) 88,562 (257,900) NONOPERATING REVENUES County recycling grant 18,489 18,489 L Interest on investments 26,861 25,136 6,947 58,944 Capital contributions 15,275 7,520 7,967 30,762 r' TOTAL NONOPERATING REVENUES 42,136 32,656 33,403 108,195 ! CHANGE IN FUND NET ASSETS (158,465) (113,205) 121,965 (149,705) ! FUND NET ASSETS, JANUARY 1 6,360,854 4,262,554 1,287,487 11,910,895 , ( . PRIOR PERIOD ADJUS1MENT 53,459 (346,078) (292,6] 9) , , FUND NET ASSETS, DECEMBER 31 $ 6,202,389 $ 4,202,808 $ 1,063,374 $ 11,468,571 t; . The notes to the financla]s statements are an integral part afthis statement. -15- CITY OF ARDEN HILLS, MJNNESOTA ST A lEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR TIJ.E YEAR ENDED DECEMBER 31, 2004 Business-type Activities - Enterprise Funds Other Nonmajor Proprietary Funds Water Fund CASH FLOWS FROM OPERATING ACTIVlTIES Receipts from tenants and users Payments to suppliers Payments to employees $ ],OJ 1,179 (812,961) (214,397) NET CASH PROVIDED (USED) BY OPERA'l1NG ACTIVlTJES (16,179) CASH FLOWS FROM CAP]T AL AND RELA lED FINANCING ACTIVlTIES Acquisition of fixed assets (478,16]) CASH FLOWS FROM NONCAPlTAL AND RELATED FINANCING ACTIVITIES Grants received CASH FLOWS FROM INVESTING ACTIVlTIES Interest on investments 29,272 NET DECREASE IN CASH AND CASH EQUIVALENTS (465,068) CASH AND CASH EQUIVALENTS, JANUARY] 1,569,978 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,104,910 The notes to the financial statements are an integral part of this statement. -16- Sewer Fund $ 937,777 (779,561) (254,233) (96,017) (267,264) 25,638 (337,643) 958,132 $ 620,489 $ 246,841 (76,122) (93,497) 77,222 (295,655) 18,489 7,823 (192,121) 355,886 $ 163,765 n . [l n n (34,974) n Total Proprietary Funds $ 2,]95,797 (1,668,644) (562,127) (],04],080) [I [] [J 18,489 62,733 (994'832~ 2,883,996 n $ 1,889,164 u II u II i' Ii , , , : e' r-, Ir. I: !1 Business-type Activities - Enterprise Funds Other Nonmajor Total C' Proprietary Proprietary 1\ Water Fund Sewer Fund Funds Funds RECONCILIA nON OF OPERATING Ii INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACI1VITIES Operating income Ooss) $ (200,601) $ (145,861) $ 88,562 $ (257,900) Ii Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization 165,669 128,308 2,023 296,000 U (Increase) decrease in assets: Receivables Accounts 14,619 6,517 (1,375) 19,761 Ii Special assessments (3,947) (3,947) (16,622) (24,516) Inventory (2,920) (2,920) Prepaid items (634) (634) (1,268) I' Increase (decrease) in liabilities: Accounts payable 17,669 (78,371) 5,637 (55,065) Due to other governments (5,032) (5,032) Ii. Accrued salaries payable (3,203) (4,284) (2,011) (9,498) Compensated absences 2,201 2,255 1,008 5,464 NET CASH PROVIDED (USED) [ , BY OPERATING ACTIVITIES $ (16,179) $ (96,017) $ 77,222 $ (34,974) NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Ii Fixed assets contributed from other funds $ 15,275 $ 7,520 $ 7,967 $ 30,762 Bond issuance cost. net of amortization $ $ $ $ [ [ Prior period adjustment $ $ (53,459) $ 346,078 $ 292,619 I: Dispositions of capital assets $ 2,771 $ 2,779 $ $ 5,550 1 I , , I' , , l; l. -17- CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 n A, Reporting Entity ., n Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Arden Hills, Minnesota (the City), operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a Council composed of n an elected Mayor and four elected Council members. The Council exercises legislative authority and detemaines all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential onits for which it is fmancially accountable, and other organizations [ 1 for which the nature and significance of their relationship with the City are such that exclusion would cause the J City's fmancial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in detennining fmancial accountability, These criteria include appointing a [1 voting majority of an organization's governing body, and (I) the ability of the primary governmentto impose its will on that organization or (2) the potential for tbe organization to provide specific benefits to, or impose specific financial burdens on the primary government. Blended component onits, although legally separate entities, are, in substance, part of the City's operations and so data from these onits are combined with data of the City. The blended component onit has a December 31 year end, The City has the following component unit. [I Blended Component Unit n The Economic Development Authority (EDA) of the City was created pursnaot to Minnesota statutes 469,090 through 469.108 to carry out economic and industrial development and redevelopment consistent with policies established by the Council. It is comprised of the members of the City Council. The EDA activities are blended and reported in a separate special revenue fimd. Separate financial statements are not issued for this component onit. _ B. Government-wide and Fund Financial Statements [l The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) [-.J' report information on all of the nonfiduciary activities of the City and its component onit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely f I to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the City is fmancially accountable. J The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific fimction or segment. Program revenues include I) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given fimction or segment and 2) grants and contnbutions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. [I J Ll Separate fmancial statements are provided for governmental fimds and proprietary fimds. Major individual governmental fimds and major individual enterprise fimds are reported as separate columns in the fimd finaocial statements. If 11 ! : " -; ( t" -18- r I I ( ff.. I! !1 u 1 i n U fl l: I [~ [: ! : L I ( I . CITY OF ARDEN IDLLS. MlNNESOT A NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Nntel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide fmandal statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fimd and fiduciary fimd fmancial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been meL Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be suscepl1ble to accrual and so have been recognized as revenues of the current fiscal period, Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptlble to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resnlting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrua1 basis when the exchange takes place. On a modified accrua1 basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, inclnde property taxes, grants, entitlement and donations_ On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements. in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligIoility requirements are met are also recorded as deferred revenue. On the modified accrual basis, receivables that will not be collected within the available period have also been reported as deferred revenue in the fimd financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and asswnptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. -19- OTY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Notel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The City reports the following major governmental fimds: The Generalfund is the City's primary operating fimd. It accounts for all financial resources of the City, except those required to be accouoted for in another fimd. The Tax Increment Bonds of I 998Afund accounts for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the City is obligated in some manner for the payment The Economic Development Authority fund accounts for revenue sources that are legally restricted to expenditures for specified purposes (not including major capital projects). The Non-Assessable Road Improvements fund accounts for the acqnisition of fixed assets or construction for this major capital project not being financed by proprietary fimds. The Permanent Improvement Revolving fimd accounts for the acquisition of fixed assets or construction for this major capital project not being financed by proprietary fimds. The City reports the following major proprietary fimds: The Water fund accounts for costs associated with the City's water system and insure that user charges are sufficient to pay for those costs. f1 . n n o fJ f] 11 [l The Sewer fund accounts for the costs associated with the City's sewer system and insure that user charges ara.1 sufficient to pay for those costs. ~ Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally are followed in both the government-wide and proprietary fimd financial statements to the extent that those standards do not conflict with or contradict guidance ofGASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds. subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfimd activity has been eliminated from government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's water and sewer fimction and various other fimctions of the City. Elinrination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goodsl services, or privileges provided, 2) operating grants and contribution, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. n [f 1 u [l u Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fimd's principal ongoing operations. The principal operating revenues of the City's enterprise fimds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted reSOUTces are available for use, it IS the City's policy to use restricted resource' ; fITst, then unrestricted resources as they are needed. I -20- ! L t.i [' I , r. rr , , (1 [ [ r~ L rr 1\ rJ rr u II L L~ [] u I! r I t 1 r' i' I Ii . CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINlJED D. Assets, Liabilities and Net Assets or Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date ofacqnisition. Cash balances from all fimds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from sucb investments are allocated on the basis of applicable participation by each of the fimds. Minnesota statutes authorize the City to invest in obligations of the U.S, Treasury, commercial paper, corporate bonds) repurchase agreements, and shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. Investments for the City are reported at fair value. The 4M Fund and broker money market accounts operate in accordance with appropriate state laws and regulations. The reported values of the pools are the same as the fair value of the pool shares. Property Taxes The Council annually adopts a tax levy and certifies it to the County in December for collection the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January I and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July and December each year. Taxes payable on homestead property, as defmed by Minnesota statutes, are partially reduced by a market value credit aid. The credit is paid to the City by the State of Minnesota (the State) in lieu of taxes levied against the homestead property, The State remits this credit in two equal installments in October and December each year. Delinquent taxes receivable include the past six yearsl uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability for delinquent taxes not received within 60 days after year end in the fimd statements, Accounts Receivable Accounts receivable include amounts billed for services provided before year end, Unbilled utility enterprise fimd receivables are also included for services provided in 2004. The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Special Assessments Special assessments represent the fmancing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are annually certified to the County or received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred revenue liability in the fund financial statements. .2]- CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 n Interfund Receivables and Payables .w n Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Activity between fimds that are representative oflending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other fimds" (i.e., the current portion ofinterfimd loans) or "advances to/from other fimds" (i.e" the non-current portion ofinterfimd loans). All other outstanding balances between fimds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities aod business-type activities are reported in the government-wide financial statements as "internal balances." n Advances between fimds, as reported in the fund fmancial statements, are offset by a fimd balance reserve account in applicable governmental fimds to indicate that they are not available for appropriation aod are not expendable available fmancial resources. n o Inventories and Prepaid Items o All inventories are stated at the lower of cost or market on the first-in, frrst -out (FIFO) method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both goverrunent-wide and fimd fmancial statements. n Capital Assets fJI Capital assets, which include property, plant, equipment and infrastructure assets (e,g" roads, bridges, sidewalks, and l similar items) are, reported in the applicable governmental or business-type activities columns in the goverrunent- wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more mel $5,000 (amount not rounded) aod an estimated useful life in excess of one year. Such assets are recorded at ~ I historical cost or estinaated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. [l Major outlays fOT capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. II Property, plant and equipment are depreciated in the proprietary fimds of the City using the straight-line method over f] the following estimated useful lives: Assets Useful Lives in Years l: Buildings and improvements Infrastructure and improvements Machinery and equipment Office furniture and equipment Vehicles 7 -40 15 - 50 5 -15 5 - 10 7 -20 fl U fl II I' ee, ! l ~ -22- n r. [1 fJ f] [l [I n l1 [1. [' J u II [; 1, l d ( , I I . CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 1: SUMMARY OF SIGNIF1CANT ACCOUNTING POLICIES - CONTINUED Compensated Absenees It is the City's policy to permit employees to accunmlate earned but unused vacation and sick pay benefits. Employees with at least ten years of service are entitled to receive one-third of their unnsed sick leave up to a maximum of 800 hours upon termination in addition to any unused vacation and compensatory time. All vacation pay is accrued wben incurred in the government-wide and proprietary finaocial statements. A liability for these amounts is reported in governmental fimds only if they have matured, for example, as a result of employee resignations and retirements. Long-term Ohligations In the government-wide fmancial statements, and proprietary fimd types in the fimd financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net assets. Bond premiums and disCOlUlts, as well as issuance costs, are deferred aod amortized over the life of the bonds using the effective interest metho<l Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fimd fmaocial statements, governmental fimd types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other fInancing sources while discounts on debt issuances are reported as other financing uses, Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Equity In the fimd fmaucia1 statements, governmental fimds report reservations of fimd balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Comparative DatalReclassifications Comparative total data for the prior year have not been presented for the governmental-wide aod all fimd fmandal statements as this is the first year of implementation of GASB Statement No. 34. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A, Budgetary Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General, special revenue and Debt Service fimds. The capital projects fimds adopt project length budgets. All annual appropriations lapse at fiscal year end. The City does not use encumbrance accounting. In August of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 15", the proposed budget is presented to the Council for review. The Council bo1ds public hearings and a fmal budget is prepared and adopted in December. The appropriated budget is prepared by fimd, nmction and department. The City's department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of approprialions between departments require the approval of the CounciL The legal level of budgetary control is the fund level. Budgeted amounts are as amended by the Council. -23- CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER31,2004 Note 2: STEW ARDSIDP, COMPLIANCE AND ACCOUNTABiliTY - CONTINUED B. Deficit Fund Equity The following fimds bad fund equity deficits at December 31, 2004: Economic Development Authority fimd of $454,660, and Community Service fimd of$14,870. The deficits will be eliminated through transfers from other funds and future revenue sources. Note 3: DETAILED NOTES ON ALL FUNDS A, Deposits aod Investments Deposits In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. n . [] o [] o o Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). n Authorized collateral inc1ndes the legal investments descnbed below, as well as certain first mortgage notes, and certain other State or local government obligations, Minnesota statutes require that securities pledged as collateral [1 be held in safekeeping by the City or in a financial institution other than that furnishing the collateral, At year end, the City bas deposits with a bank and a book value of$4,149,678. Of the bank balance, $2,139,000 was covered by . federal depository insurance. The remaining balance of$2,010,679 was uninsured at year end, -1 Investments ~I $ 7,752,886 Ii II 174,879 2,181,452 , , $ 10.109,217 -; f l, Investments are categorized into these three categories of credit risk: (I) Insured orregistered, or securities held by the City or its agent in the City's name. (2) Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. (3) Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. At year end, the City's investment balances were as follows: Category 2 Carrying Amount! Fair Value 3 U,S. government securities $ $ $ 7,752,886 Investments not subject to categorization Broker market accounts Minoesota Money Markey Mutual Fund Total investments -24- f] u [J u ! \ .) f I 'J n. '1 Il n [1 u (l [] [I [~ (I U [j [J l! f i I, , , l, I: I l1 ;. CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED A reconciliation of cash and cash equivalents as shown on the Statement of Net Assets for the City follows: Carrying aroount of deposits Investments $ 4,149,678 10,109,217 Total casb and cash equivalents $ 14,258,895 B. Intergovernmental Receivables A summary of all intergovernmental receivables as of December 31, 2004 is as follows: Local Total State General _ Permanent Improvement Revolving $ $ 50,872 37,358 $ 50,872 37,358 Total Governmental Activities $ $ 88,230 50,872 $ 37,358 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered. to be available to liqnidate liabilities of the current period, Governmental fimds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and uneamed revenue reported in the governmental funds were as follows: Fund Unavailable Unearned General Delinquent taxes $ 12,430 $ Licenses and permits 37,818 Nonmajor Delinquent taxes 60,734 Special assessments 514,612 Total $ 587,776 $ 37,818 -25- CITY OF ARDEN HILLS, MlNNESOT A NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED C. Capital Assets Capital asset activity for primary government for the year ended December 31, 2004 was as follows: Primary Government Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets not being depreciated Land $ 2,055,253 $ $ $ 2,055,253 Construction in progress 1,414,810 1,172,589 2,587,399 Total capital assets not being depreciated 3,470,063 1,172,589 4,642,652 Capital assets, being depreciated Buildings and structures 5,792,731 24,600 5,817,331 Infrastructure and improvements 1,236,047 41,959 1,278,006 Machinery and equipment 248,750 35,984 284,734 Office furniture and equipment 7,734 7,734 Vehides 229,794 20,633 250,427 Total capital assets being depreciated 7,515,056 123,176 7,638,232 Less accumulated depreciation for Buildings and structures (545,883) (180,576) (726,459) Infrastructure and improvements (77 ,097) (123,605) (200,702) Machinery and equipment (70,708) (28,662) (99,370) Office furniture and equipment (1,805 ) (773) (2,578) Vehides (70,948) (24,453) (95,401) Total accumulated depreciation (766,441) (358,069) (1,124,510) Total capital assets being depreciated, net 6,748,615 (234,893) 6,513,722 Governmental activities capital assets, net $ 10.218,678 $ 937,696 $ $ I 1.156.374 -26- o tW o o n o [J I] o ~ [l [] [] U U lJ f ~ , . . r~ II CITY OF ARDEN fiLLS, MTh'NESOTA [1. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED [I Beginning Ending Balance Increases Decreases Balance n Business-type activities: Capital assets not being depreciated Construction in progress $ 451,113 $ 595,316 $ $ 1,046,429 [I Capital assets being depreciated Buildings and structures 4,170 4,170 Infrastructure and f1 improvements 11,376,364 514,191 11 ,890,555 Machinery and equipment 844,279 24,942 869,221 Office furniture and equipment 25,542 (13,567) 11,975 U Vebic1es 95,092 8,017 103,109 Total capital assets being depreciated 12,345,447 547,150 ( 13 ,567) 12,879,030 [ [ Less accumulated depreciation for Buildings and structures (1,894) (208) (2,102) [I Infrastructure and improvements (3,494,694) (24 J ,938) (3,736,632) Machinery and equipment (606,831) (45,058) (651,889) fie Office furniture and equipment (22,525) (2,866) 13,567 (11,824) Vebic1es (64,088) (5,930) (8,017) (78,035) Total accumulated [i depreciation (4,190,032) (296,000) 5,550 (4,480,482) Total capital assets U being depreciated, net 8,155,415 251,150 (8,017) 8,398,548 Business-type activities capital assets, net $ 8,606,528 $ 846,466 $ (8,017) $ 9,444,977 [! Depreciation expense was charged to functions/programs of the primary government as follows: 1I Governmental activities General government $ 88,399 Public safety 1,474 Public works 149,149 Ij Culnrre and recreation 60,875 , Economic development 58,172 l i [ : Total depreciation expense - governmental activities $ 358,069 Business-type activities Water $ 165,669 Sewer 128,308 :. Surface water management 2,023 Total depreciation expense - business-type activities $ 296,000 -27- CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 3: DETAlLED NOTES ON ALL FUNDS - CONTINUED D. Interfund Receivables, Payables and Transfers The Economic Development Authority fimd bas a loan from thc Permanent Improvement Revolving fund for $838,955, of which 188,955 is for interest. Interfund transfers: Transfer in Nonmajor General Tax IncrCIllent governmental Fund fimd Bonds ofl998A fimds Total Transfer out General $ $ $ 161,690 $ 161,690 Economic Development Authority 288,450 288,450 Nonmajor governmental 42,000 28,000 70,000 Total transfers out $ 42,000 $ 288.450 $ 189,690 $ 520.140 Transfers are completed in accordance with the 2004 bndget. E, Long-term Debt General Obligation Bonds. The City issues general obligation bonds to provide fimds for the acqnisition and construction ofmajor capital facilities. General obligation bonds have been issued for governmental activities. Primary Government Debt General Obligation Tax Increment Bonds f] - [J f] o [] [J [] u ~ u The following bonds were issued for redevelopment projects. The additional tax increments resulting from increased [J tax capacity of the redeveloped properties will be used to retire related debt. Authorized and Issued Interest Rate Maturity Date Balance at Year End Issue Date G.O. Tax IncrCIllent Bonds Series 1998A $ G.O, Tax Increment Refunding Bonds, Series 2004 A 03/01/98 02/01/15 $ 2,545,000 3,100,000 4-4,75 % 2,395,000 3 - 3.5 11104/04 02/01/15 2,395,000 Total G,O, Tax Increment Bonds $ 4,940,000 -28- [] I] u (1 LJ I' ~' n [. n [] [J n [j LI [1 .J [~ u u u u [1 I: r' l. ! . , t, , ' f , CITY OF ARDEN illLLS, MlNNESOT A NOTES TOFINANClAL STATEMENTS DECEMBER 31, 2004 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Annual requirement to maturity for long-term liabilities is as follows: Year Ending December 31, 2005 2006 2007 2008 2009 2010 - 2015 Total Governmental Activities G,O. Tax Increment Bonds Princ~~ Int~em Total $ 2,545,000 190,000 215,000 220,000 225,000 1,545,000 $ 4,940.000 $ 167,075 $ 2,712,075 72,250 262,250 66,175 281,175 59,650 279,650 52.975 277,975 158,492 1,703,492 576,617 $ 5.516,617 $ Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2004 was as follows: Governmental activities G.O. tax increment bonds Compensated absences payable Total governmental activities Business.type activities Compensated absences payable Advance Refunding Beginning Ending Due Within Balance Additions Reductions B~ance One Year $ 2,715,000 $ 2,395,000 $ 170,000 $ 4,940,000 $ 2,545,000 78,677 14,480 93,157 69,868 $ 2,793,677 $ 2.409.480 $ 170.000 $ 5,033.157 $ 2,614,868 $ 47.348 $ $ $ 52,812 $ 39,609 5.464 On November 4, 2004, the City issued General Obligation Tax Increment Refimding Bonds, Series 2004A for $2,395,000. The Refunding Bonds were issued with a net int~est cost of3 . 3.50 percent to refimd the 2006 through 2015 maturities of the City's General Obligation Tax Increment Bonds, Series 1998A. The refimded bonds carried an average coupon rate of 4 - 4.75 percent. It is estimated that the City will reduce its aggregate debt service payments by approximately $161,259 over the eleven years and obtain an economic gain (difference between the present values of the old and new debt service payments) of$13I,072. The net proceeds of the 2004 bonds will provide for payment of interest on the 2004 issue and to call $2,545,000 of bonds outstanding on February 1, 2005. .29- CITY OF ARDEN IDLLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note3: DETAILED NOTES ON ALL FUNDS - CONTINUED D. Tax Increment Districts The City is the administering authority for the following tax increment finance districts: Tax Tax Increment Increment District No, 2 District No, 3 Authorizing law M.S. 469 M,S, 469 Type of district Redcvelopment Housing Year established 1989 1993 Duration of district 25 years 15 years Tax capacity Original $ 25,135 $ 1,758 Current 425,847 43,529 Captured - retained $ 400,712 $ 41.771 Total General Obligation Tax Increment Bonds and Notes issued $ 5,495,000 $ Amounts redeemed 555,000 Outstanding at December 31, 2004 $ 4,940,000 $ E. Fund Balance ReserveslDesignations The City bas the following reservations and designatious of fimd balance: Fund Fuud balauce - Reserved Geuera1 Purpose Aroount $ 23,573 93,157 2,373,789 838,955 $ 3,329,474 $ 1,198,199 Prcpaid items Compensatcd absences Debt service EDA loan Debt Service Permanent Improvement Revolving Total reserved fimd balance Fund balance - Unreserved - Designated General W orldng capital -30- n . [] fJ n u [] [] [] ~ n u [I U U [I 1 , T li , , i -: , i li 11 r. [j [j n [] [] [] [1 ., [~ u l [ , j [1 I j u u [i I. I j I, CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 4: DEFlNED BENEFlT PENSION PLAN - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), which is a cost-sharing, multiple-employer retirement plan, This plan is established and administered in accordance with Minnesota statutes, chapters 353 and 356, PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan, PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by Minnesota statute, and vest after three years of credited service. The defmed retirement benefits are based on a member's highest average salary for any five snccessive years of allowable service~ age, and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual fommla (Method I) or a level accrual formula (Method 2), Under Method I, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year, The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year, Under Method 2, the annnity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. A reduced retirement annuity is also available to eligible members seeking early retirement There are different types of annuities available to members upon retirement, A single-life annnity is a lifetime annnity that ceases upon death of the retiree--no survivor annuity is payable. There are also various types of joint and survivor annnity options available which will be payable over joint lives. Members may also leave their contnbutions in the fimd upon termination of public service, in order to qualify for a deferred annnity at retirement age, Refimds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees, who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available fmancial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the web at nmpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026, B, Funding Policy Minnesota statutes, cbapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the State legislature, The City makes annnal contributions to the pension plans equal to the amount required by Minnesota statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.1 0 percent and 5.10 percent, respectively, of their annual covered salary. PEPFF members were required to contnbute 6.20 percent of their annual covered salary. The City is required to contnbute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members, 5.53 percent for Coordinated Plan PERF members, and 9.30 percent for PEPFF members. The City's contributions to the PERF for the years ending December 31,2004,2003 and 2002 were $61,421, $57,633, and $52,340, respectively. The City's contributions were equal to the contractually required contnbutions for each year as set by :Minnesota statute. -31- CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 3 I, 2004 n A, Risk Management - n Note 5: OTHER INFORMATION The City is exposed to various risks ofloss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance, The City obtains r1[ insurance throngh participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sbaring pool with approximately 800 other governmental units, The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance, The LMCIT is self sustaining throngh member premiums and [1 will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded . the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably [....1 estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. [.1 B. Legal Debt Margin I The City's statutory debt limit is computed as two percent of the taxable market value of property within the City, [I Long-term debt issued and financed partially or entirely by special assessments or the net revenues of enteIprise fimd operations is excluded from the debt limit computation. There is no outstanding debt at year end that is applied against the statutory debt limit. C. Commitments u Ice Arena Financing ~ The City, along with three other cities and Ramsey County, entered into an agreement January 1, 1997 with the Minnesota Amateur Sports Commission to provide fmancing of a four sheet ice arena. The agreement provides for rental income to cover principal, interest and operating expenses, In the case of default, each City will be responsible for a specific portion of the debt. Arden Hills' percentage is 15.5 percent of one of the four sheets and the amount of the debt will not exceed $9,000,000 for all four sheets in the complex. No expenditures were incurred under this commitment in 2004. [1 J D. Lake Johanna Volunteer Fire Department, Ine. [l The City receives fIre protection under a contract with the Lake Johanna Volunteer Fire Department, Inc. The [j contract calls for annual payments and expires December 31, 2008 and allows renewal for two additional fIve-year periods. The contract cost will be based on the budget submitted by the fire department and approved by the City. Capital costs are billed separately in addition to the contract rate, The amount expended under the contract was [ II' $219,736 in 2004, [ 1 IJ , , -: Li. -32. n . [] [] [] [] u n [1 , j [~ n u u [J u I L r L. CITY OF ARDEN HILLS, MINNESOTA NOTES TO FmANCML STATEMENTS DECEMBER 31, 2004 Note 6: CHANGE m ACCOUNTmG PRINCIPLE During fiscal year 2004, the City implemented several new accounting pronouncements issued by the GASB. They are Statement No, 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments", Statement No, 37, "Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments: Omnibus ", and Statement No. 38, "Certain Financial Statement Note Disclosures ", paragraphs 6 through 11. Because of implementation of the new standards, an adjustment is required for the December 31, 2003, carry forward (net asset) balance of the governmental fimds. The following schedule reconciles the January I, 2004 balance to the December 3 I, 2003 net asset balance using the new accounting standards, Governmental funds Fund balance, December 31, 2003 $ 10,212,026 Adjustments Net book value of capital assets, including infrastructure 10,218,678 Bonds payable, net (2,715,000) Accrued interest payable (50,789) Compensated absences payable (78,677) Deferred revenue on special assessments receivable 556,575 Deferred revenue on taxes receivable 57,602 Total net assets as restated, January 1,2004 $ 18200.415 Proprietary funds Retained earnings, December 31, 2003 $ 4,816,513 Plus: Contributed capital 7,094,382 Total net assets as restated, January 1,2004 $ 11,910,895 .33- INTENTIONALLY [] - [l n [J n [] [] LI - n u u n u II THIS PAGE IS LEFT BLANK r' _1 ! . U f ~ I L; [l r. [l [1 n [I J DRAFT COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES n [] CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA [] [~ n n YEAR ENDED DECEMBER 31, 2004 u [l U r L . Special Capital Revenue Projects Funds Funds $ 961,160 $ 685,487 4,122 2,958 15,446 $ 980,728 $ 688,445 CITY OF ARDEN HILLS, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2004 ASSETS Cash and cash eqnivalents Receivables Interest Accounts TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts and contracts payable Accrued salaries and compensated absences payable $ 91,716 1,224 TOTAL LIABIUTIES 92,940 FUND BALANCES Umeserved Undesignated 887,788 TOTAL LIABILITIES AND FUND BALANCES $ 980,728 1be notes to the fmancial statements are an integral part of this statement. -34- $ 23,034 23,034 665,411 $ 688,445 [1 ti Total fl Nonmajor Governmental Funds n $ 1,646,647 7,080 [1 15,446 $ 1,669,173 fl $ 114,750 U 1,224 115,974 [1 Il 1,553,199 $ 1,669,173~ n I' d U II U [[ _i I' i, r1 fle n o n n [J n [j ~ [J [] n I r _I l[ l\ (' I le r' , L CITY OF ARDEN HILLS, MINNESOTA NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR TIIE YEAR ENDED DECEMBER 31, 2004 REVENUES Taxes Interest on investments Miscellaneous Total Special Capital Nonmajor Revenue Projects Governmental Funds Funds Funds $ 56,593 $ $ 56,593 25,282 17,830 43,112 219,084 219,084 300,959 17 ,830 318,789 TOTAL REVENUES EXPENDITURES Current Culture and recreation Miscellaneous Capital outlay NET CHANGE IN FUND BALANCES 53,662 53,662 269,111 269,111 374,555 24,461 399,016 697,328 24,461 721,789 (396,369) (6,631) (403,000) 55,752 133,938 189,690 (70,000) (70,000) (14,248) 133,938 119,690 (410,617) 127 ,307 (283,310) 1,298,405 538,104 1,836,509 $ 887,788 $ 665,411 $ 1,553,199 TOTAL EXPENDITURES DEFICIENCY OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTIIER FINANCING SOURCES (USES) FUND BALANCES, JANUARY I FUND BALANCES, DECEMBER 31 The notes to the fmancial statements are an integral part to this statement. -35- ASSETS Cash and cash equivalents (deficits) Receivables Interest Accounts TOTAL ASSETS LIABILITIES AND FUND BALANCES (DEFICITS) LIABILITIES Accounts payable Accrued salaries payable TOTAL LIABILITIES FUND BALANCES (DEFlOTS) Umeserved Undesignated TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) -36- $ (14,870) $ (14,870) $ $ [1 , fl [] n u n $ 14,010 14,010 n 231,048 [l $ 245,05~ [J fl II [j u L . , . , t_< rl n. n Risk Cable TV TeAAP Management Total l1 $ 260,895 $ 199,173 $ 273,045 $ 961,160 n 1,124 767 1,178 4,122 14,358 15,446 $ 276,377 $ 199,940 $ 274,223 $ 980,728 [] [] $ 315 $ 51,593 $ 25,798 $ 91,716 409 815 1,224 n 724 52,408 25,798 92,940 U 275,653 147,532 248,425 887,788 [~ $ 276,377 $ 199,940 $ 274,223 $ 980,728 [l II U Il Ii ,-i U I' te -37- CITY OF ARDEN IDLLS, MINNESOTA NONMAJOR SPECIAL REVENUE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) FOR THE YEAR ENDED DECEMBER 31, 2004 Community Service Recreation Program $ REVENUES Franchise taxes Interest on investments Miscellaneous $ 396 50,552 TOTAL REVENUES 50,948 EXPENDITURES Current Personal services Supplies Other services and charges Capital outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS), JANUARY I FUND BALANCES (DEFICITS), DECEMBER 31 -38- $ [ .w fl Park U 8,204 n 500 8,704 [] U 4,346 [1 368,391 372,737 II (364'033)~ 42,000 U 42,000 U (322,033) 553,081 n $ 231,048 !l U I! " I! (; -~ , , L -39- ASSETS Cash and cash eqnivalenls Interest receivable TOTAL ASSETS LJABILlTJES AND FUND BALANCES LJABlLlTIES Accounts payable FUND BALANCES Unreserved Undesignated TOTAL LJABlLlTIES AND FUND BALANCES CITY OF ARDEN HILLS, MINNESOTA NONMAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31,2004 Public Municipal Safety Laod and Capital Capital Bnildings Eqnipment Equipment $ 34,986 $ 147,569 $ 502,932 151 637 2,170 $ 35,137 $ ]48,206 $ 505,102 $ 18,192 $ $ 4,842 16,945 148,206 500,260 $ 35,137 $ 148,206 $ 505,102 -40- 11 j, ti II Total U $ 685,487 2,958 rl $ 688,445 [! $ 23,034 !l 665,411 Ll $ 688,445 11 ~ [] I I U 11 u i! ! ' lJ r' -' I' i. u n ne o n n II n [J [] [~ [] n n II U L . f' i , , REVENUES Interest OD investments EXPENDITURES Capital outlay Generalgoverrunent Public safety CITY OF ARDEN HILLS, MINNESOTA NONMAJOR CAPITAL PROJECTS FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) FOR TIIE YEAR ENDED DECEMBER 31, 2004 Public Municipal Safety Land aod Capital Capital Buildings Eqnipment Eqnipment Total $ 361 $ 4,053 $ 13,416 $ 17,830 8,989 8,989 15,472 15,472 8,989 15,472 24,461 (8,628) 4,053 (2,056) (6,631) 90,938 43,000 133,938 82,310 4,053 40,944 127,307 (65,365) 144,153 459,316 538,104 $ 16,945 $ 148,206 $ 500,260 $ 665,411 TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES Transfers in NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS), JANUARY I FUND BALANCES, DECEMBER 31 -41- CIlY OF ARDEN HILLS, MINNESOTA [1 NONMAJOR PROPRIETARY FUNDS ti COMBINING STATEMENT OF NET ASSETS DECEMBER 31, 2004 Total fl Surface Nonmajor Water Proprietary Recycling Management Funds n ASSETS CURRENT ASSETS Cash and cash equivalents $ 23,854 $ 139,911 $ 163,765 f1 Receivables Interest 631 631 Accounts 23,291 23,291 n Special assessments 76,965 76,965 TOTAL CURRENT ASSETS 100,819 163,833 264,652 [} NONCURRENT ASSETS Capital Assets U Machinery and eqnipment 50,820 50,820 Construction in progress 672,048 672,048 Infrastructure 148,442 148,442 Less accumulated depreciation (54,239) (54,239) [] TOTAL NONCURRENT ASSETS 817,071 817'071~ TOTAL ASSETS 100,819 980,904 1,081,723 J LIABIl1TIES U CURRENT LIABILITIES Accounts payable 5,530 660 6,190 Accrued salaries payable 144 1,482 1,626 U Compensated absences 568 7,332 7,900 TOTAL CURRENT LIABILITIES 6,242 9,474 15,716 NONCURRENT LIABILITIES U Compensated absences 189 2,444 2,633 TOTAL LIABILITIES 6,431 11,918 18,349 U NET ASSETS 1I Invested in capital assets, net of related debt 817,071 817,071 Umestricted 94,388 151,915 246,303 TOTAL NET ASSETS $ 94,388 $ 968,986 $ 1,063,374 11 I! - ! i L_" -42- n CITY OF ARDEN HILLS, MINNESOTA r. NONMAJOR PROPRIETARY RJNDS COMBINING STA1EMENT OF REVENUES, EXPENSES AND CHANGES IN RJND NET ASSETS n FOR THE YEAR ENDED DECEMBER 31, 2004 Total n Surface Nonmajor Water Proprietary Recycling Management Funds II OPERATING REVENUES Charges for services $ 73,393 $ 187,340 $ 260,733 Miscellaneous 99 4,006 4,105 [] TOTAL OPERATING REVENUES 73,492 191,346 264,838 OPERATING EXPENSES [] Personal services 8,911 84,586 93,497 Supplies and maintenance 250 1,795 2,045 Other services and charges 5,530 9,111 14,641 [! Recycling charges 64,070 64,070 Depreciation 2,023 2,023 n TOTAL OPERATING EXPENSES 78,761 97,515 176,276 OPERATING INCOME (5,269) 93,831 88,562 ~ NONOPERATING REVENUES County recycling grant 18,489 18,489 Interest on investments 4 6,943 6,947 U Capital contribntions 7,967 7,967 TOTAL NONOPERATING REVENUES 18,493 14,910 33,403 [1 , .1 CHANGE IN FUND NET ASSETS 13,224 108,741 121,965 U FUND NET ASSETS, JANUARY I 81,164 1,206,323 1,287,487 U PRIOR PERIOD ADruSTMENT (346,078) (346,078) FUJ\1D NET ASSETS, DECEMBER 31 94,388 968,986 1,063,374 $ $ $ U I' tj . -43- CfIY OF ARDEN IDLLS, MINNESOTA NONMAJOR PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2004 Business-type Activities - Enterprise Funds Total Nonmajor Proprietary Funds Recycling CASH FLOWS FROM OPERATING ACTIVITIES Receipts from tenants aod users Payments to suppliers Payments to employees $ 56,870 $ (64,235) (8,911) NET CASH PROVIDE BY OPERATING ACTMTIES (16,276) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acqnisition of ftxed assets CASH FLOWS FROM NON CAPITAL AND RELATED FINANCING ACTMTIES Grants received 18,489 CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments NET INCREASE (DECREASE) IN CASH AND CASH EQUN ALENTS 2,310 CASH AND CASH EQUN ALENTS, JANUARY I 21,544 CASH AND CASH EQUN ALENTS, DECEMBER 31 $ 23,854 -44- Surface Water Management 189,971 $ (11,887) (84,586) 93,498 (295,655) 97 7,726 (194,431) 334,342 $ 139,91 I 246,841 (76,122) (93,497) 77,222 (295,655) 18,489 (192,121) 355,886 $ 163,765 n - n f1 n n u u n 7,823 ~ II [! II u !l ~ , II ! ! -' Li [1 J fl. n n [1 n [] { ! , J [] [~ u [I U [l U L I. RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization (Increase) decrease in assets: Receivables Accounts Special assessments Increase ( decrease) in liabilities: Accounts payable Accrued salaries payable Compensated absences NET CASH PROVIDED BY OPERATING ACTIVITIES NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Fixed assets contnbuted from other fimds Bond issuance cost, net of amortization Prior period adjustment Dispositions of capital assets -45- Business-type Activates - Enterprise Funds Total Nonmajor Proprietary Funds 2,023 2,023 (1,375) (1,375) (16,622) (16,622) 5,530 107 5,637 (140) (1,871) (2,011) 225 783 1,008 $ (16,276) $ 93,498 $ 77,222 Recycling Surface Water Management $ (5,269) $ 93,831 $ $ 7,967 $ $ $ $ 346,078 $ $ $ 88,562 $ 7,967 $ $ 346,078 $ ----------- !l CITY OF ARDEN HILLS, MJNNESOTA ' - GENERAL FUND .- SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACWAL FOR THE YEAR ENDED DECEMBER 31, 2004 (With comparative actual amounts for the year ended December 31, 2003) [j 2004 2003 Variance with II Final Budget - Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts n REVENUES General property taxes $ 2,179,192 $ 2,179,192 $ 2,244,078 $ 64,886 $ 2,230,113 Licenses and permits 11 Business 52,000 52,000 54,543 2,543 47,647 Nonbusiness 308,100 308,100 456,420 148,320 607,903 Total 360,100 360,100 510,963 150,863 655,550 II Intergovernmental revenue n State Street aid 70,000 70,000 66,218 (3,782) 63,288 Property tax credits 6,234 6,234 5,925 Firefighter's relief aid 2,000 Il Other 5,179 5,179 5,179 5,179 Total 75,179 75,179 77,631 2,452 76,39~ Charges for services General government 53,120 53,120 56,063 2,943 59,112 [l Public safety 5,900 5,900 5,914 14 7,269 Culture and recreation 80,600 80,600 82,892 2,292 220 Total 139,620 139,620 144,869 5,249 66,601 U Fines and forfeitures 29,600 29,600 43,055 13,455 31,334 Interest on investments 8,000 8,000 23,376 15,376 8,299 Il Miscellaneous State building code surcharges 10,000 10,000 14,085 4,085 17,918 P City building code surcharges 1,000 1,000 1,025 25 990 .I Refunds and reimbursements 39,250 39,250 47,088 7,838 53,187 Sale of assets 860 860 U Building rent 33,990 33,990 33,990 33,000 Total 84,240 84,240 97,048 12,808 105,095 U TOTAL REVENUES 2,875,931 2,875,931 3,141,020 265,089 3,173,384 I" I -' (, -46- n CITY OF ARDEN HILLS, MINNESOTA n. GENERAL RJND SCHEDULE OF REVENUES, EXPENDllURES AND CHANGES IN RJND BALANCES - BUDGET AND ACTUAL - CONTINUED n FOR THE YEAR ENDED DECEMBER 3 1,2004 (With comparative actual amounts for the year ended December 31, 2003) 2004 2003 0 Variance with Final Budget - Budgeted Amounts Actual Positive Actual n Original Final Amounts (N eRative) Amounts EXPENDITURES Current expenditures n General government Mayor and Council Personal services $ 17,570 $ 17,570 $ 17,682 $ (112) $ 17,569 Supplies 3,100 3,100 2,271 829 2,742 II Other services and charges 76,000 76,000 85,593 (9,593) 112,063 Total 96,670 96,670 105,546 (8,876) 132,374 n Elections and voter registration Personal services 1,076 1,076 1,076 Supplies 1,300 1,300 943 357 11 Other services and charges 13,800 13,800 13,289 511 490 [8 Total 16,176 16,176 ]4,232 1,944 490 J Administration Personal services 212,414 212,414 253,808 (41,394) 247,683 P Supplies 13,250 13,250 12,331 919 10,948 Other services and charges 87,950 87,950 93,193 (5,243) 72,811 J Total 313,614 313,614 359,332 (45,718) 331,442 r f J Legal Other services and charges 68,000 68,000 48,802 19,198 50,204 n Planning and zoning Personal services 74,710 74,710 69,467 5,243 95,619 [l Supplies 2,300 2,300 ],000 ],300 2,538 Other services and charges 17,870 17,870 6,900 10,970 9,073 Total 94,880 94,880 77,367 17,513 107,230 U Building Personal servi ces 29,076 29,076 30,885 (1,809) 26,484 ! Supplies 4,600 4,600 4,303 297 3,306 , Other services and changes 104,150 263,234 183,513 79,721 100,369 I (j Total 13 7,826 296,910 218,70] 78,209 130,159 . Total general government 727,166 886,250 823,980 62,270 751,899 -47- I-I U CITY OF ARDEN HILLS, MINNESOTA GENERAL FUND .w SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED FOR TIIE YEAR ENDED DECEMBER 31, 2004 (With comparative actual amounts for the year ended December 31, 2003) U 2004 2003 Variance with [] Final Budget - Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts n EXPENDITURES - CONTINUED Current expenditures - Continued Public safety Police and animal control [J Other services and charges $ 707,797 $ 707,797 $ 705,357 $ 2,440 $ 682,036 Fire protection !I Other services and charges 219,736 219,736 219,736 205,695 Protective inspection n Personal services 150,364 150,364 147,739 2,625 146,763 Supplies 850 850 385 465 977 Other services and charges 32,070 32,070 57,702 (25,632) 40,539 Total 183,284 183,284 205,826 (22,542) 188,279 [j Total public safety 1,110,817 1,110,817 1,130,919 (20,102) 1'076'0]0~ Public works Streets Personal services 135,173 135,173 134,540 633 141,233 n Supplies 44,145 44,145 38,564 5,581 39,094 Other services and charges 216,450 270,661 213,323 57,338 809,179 Total public works 395,768 449,979 386,427 63,552 989,506 U Culture and recreation II Park maintenance Personal services 255,181 255,181 270,908 (15,727) 140,204 Supplies 47,450 47,450 56,661 (9,211) 37,844 II Other services and charges 31,600 46,600 46,904 (304) 55,309 Total culture and recreation 334,231 349,231 374,473 (25,242) 233,357 II Economic development Ii Other services and charges 35,085 35,085 42,207 (7,122) Total current expenditures 2,603,067 2,831,362 2,758,006 73,356 3,050,772 11 , , , . el ! . i lj -48- n CITY Of ARDEN HILLS, MINNESOTA n. GENERAL FUND SCHEDULE Of REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED n fOR TIIE YEAR ENDED DECEMBER 31, 2004 (With comparative actual amounts for the year ended December 31, 2003) 2004 2003 n Variance with final Budget- Budgeted Amounts Actual Positive Actual rJ Original Final Amounts (Negative) Amounts EXPENDITURES - CONTINUED Capital outlay n General government $ 43,926 $ 43,926 $ 4,360 $ 39,566 $ 9,845 Public safety 20,000 20,000 20,633 (633) 37,120 Public works 22,000 22,000 1,163 20,837 10,982 Culture and recreation 81,000 81,000 37,078 43,922 38,208 U Total capital outlay 166,926 166,926 63,234 103,692 96,155 [J TOTAL EXPENDITURES 2,769,993 2,998,288 2,821,240 177,048 3,146,927 EXCESS (DEFICIENCY) OF REVENUES [ 1 OVER (UNDER) EXPENDITURES 105,938 (122,357) 319,780 442,137 26,457 OTIIER FINANCING SOURCES (USES) ~. [~ Transfers in 42,000 42,000 42,000 554,155 Transfers out (147,938) (147,938) (161,690) (13,752) (218,945) TOTAL OTIIER FINANCING n SOURCES (USES) (105,938) (105,938) (119,690) (13,752) 335,210 NET CHANGE IN FUND BALANCES (228,295) 200,090 428,385 361,667 IJ FUND BALANCES, JANUARY I 1,114,839 1,114,839 1,114,839 753,172 FUND BALANCES, DECEMBER 31 $ 1,114,839 $ 886,544 $ 1,314,929 $ 428,385 $ 1,114,839 I] U U II I I. -49- TAX CAPACITY Real estate Personal property TOTAL CITY OF ARDEN HILLS, MINNESOTA TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES (Shown by year of tax collectlbility) 2004 $ 10,536,631 151,838 10,688,469 FISCAL DISPARITY ADmSTMENT Contribution Distribution (1,938,508) 684,727 $ 9,434,688 ADmSTEDTOTAL TAX CAPACITY TAX LEVIES General fimd TAX CAPACITY RATES General fimd $ 2,265,678 24.014% -50- 11. 2003 .- $ 9,498,705 fl 146,814 9,645,519 f1 (1,637,508) II 655,063 ! 'j $ 8,663,074 $ 2,201,002 II II 25.407% II , II u u u u [l i I ~J ( f I! - I' Ll n ~ [] [] o n [] DRAFT OTHER REPORT CITY OF ARDEN HILLS ARDEN HILLS, MINNESOTA n n L- U YEAR ENDED DECEMBER 31, 2004 [I u u U l' . INTENTIONALLY fl . LI n [J [I fl n IJ ~ fI n n u u TIllS PAGE IS LEFT BLANK U 11 -: I' U [] n n n 1-1. 1 IJ [~ [1 > u n [; t: r' L . 11 Civic Center Plaza Suite 300 P.O. Box 3]66 Mankato, MN 56002-3166 REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and Council City of Arden Hills Arden Hills, Minnesota We have audited the [mandaI statements of the City of Arden Hills, Minnesota (the City) as of and for the year ended December 31, 2004, and have issued our report thereon dated March 24, 2005, We conducted our audit in accordance with auditing standards generally accepted in the United States of Aroerica and the provisions of the Minnesota Legal Compliance A udit Guide for Local Government, promulgated by the Minnesota Office of the State Auditor pursuant to Minnesota statute 6.65, Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances, The Minnesota Legal Compliance Audit Guide for Local Government covers six main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements and miscellaneous provisions, Our study included all of the listed categories, The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions, except as described in the Schedule of Finding on the following page. This report is intended solely for the information and use of the 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, DRAFT March 24, 2005 Minneapolis, Minnesota ABDO, ElCK & MEYERS, UP Certified Public Accountants -5]- 507.625.2727 . Fa:JI 507.388.9139 wv,"w.aemcpas.com INTENTIONALLY 0, - n o [] [] o o u ~ u [l ~] U U fI u [I e ! ' l. l, THIS PAGE IS LEFT BLANK ! ' i J n r. Findin. n 2004-1 0 [1 J [l [] 2004-2 I! [1 [~ [J II n [1 u [ : . CITY OF ARDEN HILLS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS DECEMBER 31, 2004 Descriotion Segregation of Duties Our study and evalnation disclosed that becanse of the limited size of your office staff, the City has limited segregation of duties. Good internal control contemplates an adequate segregation of dnties so that no one individual bandIes a transaction from inception to completion. While we recognize that the City is not large enongh to permit an adequate segregation of duties in all respects, it is important, however, that you be aware of this condition, Management Response Management recognizes that it is not economically feasible to correct this finding, is aware of the condition and is relying on oversight by management and Council to monitor this condition, Collateral Coverage In accordance with Minnesota statute, section 118A.03, the City is required to have pledged collateral equal to 110 percent of the deposits not covered with insurance, The City had adequate collateral pledged through September 30, 2004, but at December 31, 2004, the City did not have any collateral pledged. The City innnediately corrected the situation upon discovery. Management Response Management recognizes the requirement for pledging collateral and will work with the bank to ensure it is in place, www_aemcpas.com -52- 507.625.2727 . Fax 507.388.9139 . " ~ ~HILLS City of Arden Hills Request for Council Action Prepared by: SJ Dept.: Admin Council Mtg. Date: 5/31/2005 Final Action Needed By: 5/31/2005 Agenda Item a.~ill~" ..';UtS_ Adopt Resolution 05-37 Budgeted Amount: NA Actual Amount: NA Funding Source: NA Council Action Request: City staff is requesting that City Council adopt Resolution No. 05-37 appointing Arlene Mitchell to the Communications Committee. Staff Recommendation: Adopt Resolution No. 05-37 Advisory Commission Action: Commission Date --"-"'-"'..._'-- ..... ...PI?n-"ing . Supporting Documents (which are attached to this Action Form): o Memo/letter: . [8] Resolution (No. 05-37) D Ordinance (No. D Engineering Recommendation: D Attorney Recommendation: DOther: Financial Implications: Not Applicable Administrator/Staff Comments: City staff recommends approval of Resolution No. 05-37. Action . . .f\Jotil.Pjllic,able Not Applicable Not applicable \\Earth\Admin\Assistant City Administrator\Requests for Council Action\2005\2005 Approve Resolution 05-37 Arlene Mitchel! Conununication Committee. doc . . ~ ~~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 05-37 A RESOLUTION APPOINTING ARLENE MITCHELL AS A COMMUNICATIONS COMMITTEE MEMBER WHEREAS, the City Council annually appoints residents to assist City Council and City Staff in the creation of the Arden Hills Notes, a monthly newsletter; THEREFORE, BE IT RESOLVED: The City Council appoints Arlene Mitchell to serve on the Communications Committee. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 31ST DAY OF MAY, 2005. Beverly Aplikowski, Mayor ATTEST: Michelle A. Wolfe, City Administrator . \\Earth\Admin\Council\Resolutions\20(}5\05~33, Appointing Cynthia Wheeler to the PTRC Committee.doc . ~ ~HILLS City of Arden Hills Request for Council Action Agenda Item II Pav Estimate #4 to MC Builders for Perry Park Pavilion Budgeted Amount: Actual Amount: $16,671,56 Funding Source: Park Fund , Prepared by: Tom Moore Dept.: O&M Council Mtg. Date: 5/31/05 Final Action Needed By: 5/31/05 Council Action Request: Approve Pay Estimate #4 for MC Builders, Inc. of Becker, Minnesota in the amount of $16,671.56 Staff Recommendation: Staff recommends that the City Council approve Pay Estimate #4 for MC Builders, Inc. of Becker, Minnesota in the amount of $16,671 ,56. Advisory Commission Action: Commission Date Action . Supporting Documents (which are attached to this Action Form): IZI Memo/Letter: Memo dated May 24, 2005 o Resolution (No. ) o Ordinance (No_ ) o Engineering Recommendation: o Attorney Recommendation: IZI Other: Pay Estimate #4 Financiallmplicalions: N/A Administrator/Staff Comments: . Page 1 of 1 t . . . ~ ~~HILLS MEMORANDUM DATE: Agenda Item 3.D May 24, 2005 TO: Michelle Wolfe; City Administrator FROM: Thomas J. Moore; Director of Operations & Maintenance SUBJECT: Pay Estimate #4 - Perry Park Pavilion Backeround At the April 20, 2004 Regular Council Meeting, the City Council approved the plans and authorized the advertisement for and the obtaining of bids for a new pavilion at Perry Park. The City Council approved 2004 CIP Budget for the pavilion was $350,000. At the June 28, 2004 Regular City Council Meeting, the City Council authorized the bid award to MC Builders, Inc, of Becker, Minnesota in the amount not to exceed $331,662.34. The funding source for this project is the Park Fund. Construction began in August, 2004 and has proceeded in a timely manner. Staff Recommendations Staff recommends the City Council approve Pay Estimate #4 for MC Builders, Inc. of Becker, Minnesota in the amount of $16,671.56. Total dollar amount paid to date is $318,418,84. A retainage of$13,243.50 is currently held. Funds are to be provided by the Park Fund, . . ~S~8S-> ]~~~~.~~ ~ lI)'" --x. --o.=i 2. - (I} t5 Q) m ~ rn" ::.;- _ ;:f ~5'5af~~ 111 =E Q)::e: l ~ B [8" S (f) o a. 'g Ii S ~ ~ ~ ":5. ~ ~ ::0 ..... ~ i3'"b 0 :::! ()=E:::3?r::t"TI m;::;::3l:OiilO ;:o;:,.~g:a)> ~~g_::Jo-{ ~o~~g~ g Q ),. ~ 0 ~ g g, ::) ;0 Q.~~.~-a ~SCQ.~)> r;) (It '0 '" ~ ~ ~ ~:l m ~ ~ ill: g z pi :::r ~ 0 -t III III 0 ::J a ~ s!t ~ i i i g s: ~ < ~ :; s: ~. 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(5 z (f) ::r: m m .... l> );: o o () c:: S: ~ -; Gl 8 . . . ... .....AJ~~n' " ..;.~= City of Arden Hills Re uest for Council Action Prepared by: SJ Dep\.: Admin Council Mtg. Date: 05/31/2005 Final Action Needed By: 05/31/2005 Agenda Item Motion to Approve the Awardinl! ofthe PCI Street Ratinl! Contract to GoodPointe Technolol!ies Budgeted Amount: NA Actual Amount: NA Funding Source: NA Council Action Request: Motion to approve the awarding of the PCI Street Rating Contract to GoodPointe Technologies in the amount of $4,500.00. Staff Recommendation: City Council approval of awarding the PCI Street Rating Contract to GoodPointe Technologies, AdvisoryCommiss~~IIP.ction: Commission - ----------, , Date Action . .l\Iot!'.pplicable Not Applicable . ......... ....... .l\Iot applicable ........F'I,,~~i~g PTRC Supporting Documents (which are attached to this Action Form): rs:J Memo/Letter: D Resolution D Ordinance (No. D Engineering Recommendation: D Attorney Recommendation: rs:J Attachments . Overview of GoodPointe Technologies Proposal to the City of Arden Hills Financial Implications: Not Applicable- Administrator/Staff Comments: No additional comments at this time. . e e ~ ~~HILLS MEMORANDUM DATE: May 5, 2005 AGENDA ITEM 3,E TO: Mayor and City Council Michelle Wolfe, City Administrator ~\'~ FROM: Tom Moore, Operations and Maintenance Director Schawn Johnson, Assistant to the City Administrator SUBJECT: PC! Ratings for City Streets BACKGROUND A few months ago City Council directed staff to pursue a third-party vendor to perfolli1 the PC] ratings process for our City streets. Staff issued a request for proposals in March, and received two proposals by the deadline of April 29. We receivcd two proposals: one from GoodPointe Technology Corporation and one from Bonestroo, Rosene, Anderlik & Associates. The 2005 budget includes $15,000 for performing the PC] ratings process this year. DISCUSSION The City has implemented a pavement management program (PMP), which includes field surveying each roadway every three years to monitor its conditions, identify trends and extrapolate pavement life expectancies. This survey measures all the pavement distresses within a road segment and results in a numerical Pavement Condition Index (PC!) unique to each particular road segment. To implement a maintenance program, specific rehabilitation/reconstruction treatments arc recommended based on the PC] values of a section of roadway, A specific PC! value is assigned to streets and used to rank all the City streets in order, from highest to lowest. The PCI value does not determine the rehabilitation or reconstruction cost of a project, but merely prioritizes all the City streets to determine those that are in the worse condition and in urgent need of repair. In addition to surface PC] ratings, issues such as storm water drainagelflooding, water quality improvements, design standardization, and utility condition are considered when developing the recommended priority for reconstruction and rehabilitation of City roadways. This approach allows for the City to effectively address storm water drainage and water quality issues, Proposal: GoodPointe Technology GoodPointe Technology (GoodPointe) is specialized in developing roadway infrastructure management systems, collecting infrastructure condition data, and providing ongoing technical support. GoodPointe is headquartered in St. Paul. They have been developing pavcment management consultation relationships with local, national, and intemational government PCI Ratings for City Streets May 26, 2005 Page 2 of5 . agencies since the 1980's. GoodPointe does not provide professional engineering design/spec services to their infrastmcture management clients. They feel this puts them in a position to provide objective recommendations for multi-year maintenance, repair, and rehabilitation needs. Their strategy for this proposed project, as outlined in their proposal, is to: . Collect high quality pavement condition data according to the standards developed and documented for this project; . Highlight the technical issues facing the City of Arden Hills' infrastmcture network; . Work with our staff to detem1ine aggressive, realistic goals for our network; . Use a proven pavement management methodology to accomplish the goals; and, . Establish the process so that Arden Hills can maintain its course with the PMS information that is collected, In the proposal, GoodPointe Technologies provided the City with tluee different options to consider. Option 1 is a "Detailed PC1 Survey and Executive Summary Report". This basic option provides the Ctiy with high quality pavement condition data and an executive summary report to document network condition in 2005. Deliverables include the following: . Pre-survey project kick-off meeting onsite with City staff; . 100% surface area evaluation of all pavements; A . Executive Summary Report to document the results of the condition survey (PCI _ distribution of network, results by street block, etc.); . Digital MS Excel spreadsheet of PC I results; and . Digital MS Word document of executive summary report, Option 1 will be provided to us for a cost of $4,500. They also will conduct curb and gutter evaluation as part of Option 1. Staff recommends that this be included. Option 2 from GoodPointe includes all items from Option 1, plus additional items as listed in the first attachment to this memorandum. The cost for Option 2 would be $15,425. Option 3 includes all items from Options 1 and 2, plus software and related software services (also described in the attachment.) At this time, staff feels it would be premature and costly to proceed with items outlined in Options 2 and 3. Proposal: Bonestroo, Rosene, Anderlik & Associates Bonestroo, Rosene, Anderlik & Associates (BonestTOo) is an engineering and architectural firm located in Roseville. They provide engineering and architectural services to cities and counties tluoughout the state. They have many years of experience doing PCI ratings for their clients. They have done similar projects for Centerville, Spring Lake Park, and Oak Park Heights. They use a system called the "Pavement Surface Evaluation and Rating" method of street rating (i.e. P ASER). They believe that this method provides the following benefits: . User-friendly pavement condition rating; . Accurate and consistent pavement condition scores; e . . . PCl Ratings for City Streets May 26, 2005 Page 3 of 5 . Low initial cost; . Affordable long-term updating, compared to systems such as Micro-Pave or the PCI method. Bonestroo is quoting a price of $1 0,500 for the initial street ratings. This would include: . Task I: Project management (oversight, minutes, schedules, budget reports) . Task 2: Project initiation (meeting with staff, data collection including maps, photos and segment data) . Task 3: Setup of an excel spreadsheet to incorporate existing data and direct entry of the new data (i.e. the assignment of a condition score 0-100), and discernment of the existence of drainage systems. . Task 4: Extract pavement Condition Data from Field Reviews (using the P ASER method to assign condition values to the City streets), Bonestroo offered some additional options. Periodic Condition Updates would cost $10,500 per year (each time the entire city was done) or they could train our staff to perform this. Establishing a database would cost $8,600, and drainage evaluation would cost $5,01 o. As noted with the GoodPointe proposal, staff feels it would be premature and costly to proceed with the options, until such time that we have establisbed our in-house engineering capabilities. PROPOSAL ANALYSIS Staff is in favor of contracting with GoodPointe for the 2005 PCI program. There are several reasons why we are making this recommendation: 1. Cost: GoodPointe can provide a basic PCl rating process for us at the cost of $4,500. This is significantly below Bonestroo's basic proposal ($10,500) and is also below our budgeted amount of$15,000. 2. Engineering Services: Weare currently in the process of studying the issue of staff engineering services. We feel it would be pre-mature to do more than the basic PCI ratings this year, until we know whether we will be hiring someone on staff, joining forces with another city, or pursuing a different option. We feel confident that GoodPointe can provide the basic PCI rating information we need in order to prepare a pavement management plan, assist with prioritization of projects, and be a resource for CIPfbudget preparation. 3. Consistencv: For now, GoodPointe continues our tradition of using a numerical pavement condition index based on visual surface inspection, The Bonestroo proposal includes the use of a new process (P ASER), which seems like a very good approach but at this time, staff feels a consistent approach is best for this year. Depending on the outcome of this process and the outcome of our engineering services discussion, we may want to pursue this option in a future year. PCI Ratings for City Streets May 26, 2005 Page 4 of 5 . 4. Specialization: GoodPointe specializes in infrastructure rating processes, and does not provide other engineering services, We believe this argues for a more objective approach to thc work. 5. Process: Since GoodPointe is a firm that specializes in this kind of work and does not provide engineering design services, they are not a direct competitor with our contracted City Engineer, which may make for a smoother work relationship. 6. Possible Future Use: As COlmcil is aware, staff is currently in discussions with the City of Roseville regarding engineering services. Roseville also works with GoodPointe, and they provide Arden Hills with IT services as well. This combination provides potential opportunities for how we use, maintain, and update the rating information received during this process. In addition, GoodPointe has agreed to allow City staff (i,e, O&M employees) to participate in the rating process as a training cxercise. In other cities, contractors have worked to train city staff so that eventually the rating process can be conducted in-house, Some other cities have found that the PCI process should be conducted every one or two years, instead of the three that we currently use as a guide. The reason is that streets can significantly change in a one year period depending on weather conditions and other factors. References for GoodPointe: . In terms of references, GoodPointe's proposal included as list of twenty-two city/county clients, most of which are in the metro area. Assistant to the City Administrator Schawn Johnson contacted several of the cities and a summary of those discussions is provided below. SHOREVIEW: Jerry Auge stated that GoodPointe is a great company and they have provided great service to the City of Shoreview over the years. They are very responsive and customer service oriented. The City of Shore view budgets $5,000 per year for their PCI services. The only concern he voiced is that each PCI rater is different, so if at all possible, it is important to create continuity and have the same person complete the PCI ratings on a regular basis. He would give the company a gradc of "A" and highly recommend them. COTTAGE GROVE: Jennifer Levitt (City Engineer) stated that they hired GoodPointe for the first time last year for a neighborhood-specific project. She said that GoodPointe was very responsive and completed the project within a very small time frame. Their customer service was excellent. Ms. Levitt stated they had one difficulty in the conversion of data, but the problem was not caused by GoodPointe, Her overall grade for them was a "B+" and she would recommend them to Arden Hills, ROSEVILLE: Duane Schwartz (Public Works Director) said that the City of Roseville has been working with GoodPointe for 15 to 20 years. This company has always been reliable and is very client oriented. He said that they aTe always receptive to the client's ideas and like to create long term relationships with clients. He gave GoodPointe Technologies an overall grade of an "A" . and strongly recommends this company to Arden Hills. . . . PCI Ratings for City Streets May 26, 2005 Page 5 of5 NEW HOPE: Guy Johnson (Public Works Director) said that they are very happy with GoodPointe Technologies. The City of New Hope recently created a 30 year pavement management plan. GoodPointe Technologies was very helpful with the set-up and implementation of this program. New Hope conducts PCI ratings on 1/3 ofthe City each year, Guy said that he would give GoodPointe a grade of a "B+" and would strongly recommend this company to Arden Hills. In addition, GoodPointe included positive letters of reference from the cities of Eagan and Bloomington as well as Washington County. Recommendation Staff recommends City Cow1cil approval of awarding the PCI street rating contract to GoodPointe Technologies in the amount of $4,500.00. \'IEarthlAdminIAssistant City AdministratorVt4emo's and Lellers\2005W5-31-05 Memo to Council RE PCI Ratings.doc EXHIBIT A City of Arden Hills April 8, 2005 . This proposal presents 3 options for the City: Option 1: Detailed PCI SulVey and Executive Summary Report: Deliverables: o . Pre-survey project kickoff meeting onsite with City staff; o 100% surface area evaluation of all pavements; o Executive Summary Report to document the results of the condition survey (PC! distribution of network, results by street block, etc,); o Digital MS Excel spreadsheet of Pel results; and, o Digital MS Word document of executive summary report, Option 2: Detailed PCI SulVey and Street Infrastructure Plan Deliverables: o All items included in Option 1 above, PLUS: o Work with the City to develop a comprehensive street infrastructure plan. o Establishment of the Infrastructure CONsultant (lCON) Pavement Management Database (to. be maintained at GoodPointe); o Unkage of available ArCView GIS data (centerline shapefile) to Oty PMS inventory for presentation and reporting purposes; o Ongoing annual maintenance of ICON PMS data (at GoodPointe); and, o Ongoing ICON PMS system report generation/request services. Option 3: Detailed PC! Survey, Street Infrastructure Plan and ICON PMS Software Deliverables: o All items included in Options 1 and 2 above, PLUS: o ICON PMs software to be installed and maintained at the City; o Comprehensive ICON PMS software training; and, o Ongoing, unlimited ICON PMS software support and upgrades. e iii...., We start out with a brief introduction to our company, followed by our proposed scope of work, At the end of the proposal we include our pricing summary, a short list of our client references, and a statement of our insurance coverage. We sincerely appreciate this opportunity to present this proposal to you, hope you enjoy reading it, and look forward to helping you find the best way to manage your pavement assets! Copyright 2005 GoodPointe Technology Corporation. All Rights Reserved, Page 1 of 19 - ,ark Plan Our prqject (Pam will disa.J5s the prqJect with the Gty of Ilrden Hills and will keep the City informed of progress. . ConditkJn values will be assigned to city streets based on the PASEk manuals. ~ JII City of Arden Hllfs lilt PCl5treet RatJngs Task I: Project Management . Project Management includes all activities to oversee and direct the project and to help ensure it stays on sd1edule and on budget. . Project Manager Mark Daly will provide meeting minutes, progress schedule updates, and budget reports to keep the City advised of project progress, Task 2: Project Initiation . The Bonestroo project team will meet with City staff to disruss project expectations. . . We will obtain the information needed to complete the project, including maps, digital photos, and segment data. Task 3: Setup Excel Spreadsheet . We will incorporate the City's existing information into an Excel spreadsheet . The Excel file will allow direct entry of the pavement condition rating and drainage information into the City.s pavement management system. This creates a very user-friendly interlace. . We will assign each street segment a condition score 10-100). . We will discern the existence of drainage systems. Task 4: Extract Pavement Condition Data from Reid Reviews We propose to use the Pavement Surface Evaluation and Rating jPASERJ manuals to assign condition values to the city streets. PASER is a well established rating system. Similar to bridge safety inspection, PASER uses a rating system of I - 10 based on established degrees of deterioration, The manual includes written descriptions and pictures of each level. A Copy of the PASER manual for asphalt roads has been included in Appendix A for your reference, or you may view the PASER asphalt and concrete manuals online at: - http://tic.engrwisc.edu/ManualS/Concrete-PASER 02,pdf - http://tic.engr.wisc.edU/ManualS/Asphalt-PASER 02,pdf . Using the PASER manuals, we will rate the pavement condition for each street segment. . The rater will input the pavement condition score directly into the Excel file_The Excel file will convert the PASER score into equivalent scores based on a 0-100 scale. o Additional (Optionalt Services These seNices are optional and listed as such on the cost form. Brief information is included here describing two proposed additional seNices, and we invite you to contact us for more information. 3 . . . I I I , I I A5 an additionalsetWce, we can create a Microsoft Acce.s:r database with a report that provides a visual and verbal summary of aIr street segments. III City of /lrden Hills 1Jt PCI Srreet R.adngs Periodic Condition Updates We can perform periodic condition rating updates or provide PASER . training to City staff to perform condition rating updates. Updates are recommended every one to four years, depending on pavement type and traffic levels. Pavement Management Database We can create a simple database using Microsoft Access software. Access reports combined with digital pictures will provide City staff with a verbal and visual summary of all street segments. An example of a report is shown in .Appendix B. This summary will help the City provide effective customer 5eNice to their citizens. Bonestroo can administer the pavement management: data and, using our experience and expertise, make recommendations for a detailed street rehabilitation program. Recommendations for Drainage Improvements We can evaluate existing drainage facilities and street profiles and make recommendations for drainage improvements. o Project Deliverables . Pavement Condition scores 10-100) for each street segment identified by City staff . Verification of existing storm sewer system for each street segment o City Contributions The City will assist in completing the project as outlined below, . The City will prOVide an Excel or IV:.a!ss file containing tile fo/lOINing street segment information !inm tile pavement management program: . Street names . Beginning and ending points . Segment length . PO scores from all previous reviews . . The City will provide a city map showing all street segments and existing storm sewer fadlities. o QUality Assurance/Quality Control Procedures As a firm, quality control and assurance are of great importance to our ongoing operations and integrity, To provide the city with excellent seNice and quality deliverables, we will employ the following quality control measures: . Each of our PASER manual experts has at least: 20 years of construction experience and has performed pavement condition ratings for at least seven years, . The Project Manager will conduct a quality control review and rating of approximately 50% of the entire street system. The quality control review will include drMng the entire street segment and walking a ponion of the segment ~ 4 ,. . Prepared by: PH ~".lr Dept.: CD Council Mtg. Date: 5/31/2005 Final Action Needed By: - ~ ~HILLS City ot Arden Hills Request for Council Action Agenda Item II PC # 05-15: Vacatina a Pedestrian Wav Budgeted Amount: $0,00 Actual Amount: $0,00 Funding Source: $0,00 Council Action Request: Consider Resolution 05"38 which would vacate all but two portions of the Pedestrian Way in Block 2 of the Karth Lake Hills pial. Staff Recommendation: Deny Resolution 05-38 which would vacate all but two portions of the Pedestrian Way in Block 2 of the Karth Lake Hills pial. Advisory Commission Action: Commission Date Action Not . Supporting Documents (which are attached to this Action Form): [SJ Memo/Letter: Staff Report to the City Council - May 31 , 2005 [SJ Resolution (No. 05-38) D Ordinance (No. D Engineering Recommendation: D Attorney Recommendation: D Other: Financiallmplic~tions: Administrator/Staff Comments: . Page 1 of 1 . . . ~ ~~HILLS MEMORANDUM DATE: Agenda Item 5.A May 31, 2005 TO: Mayor and City Council Peter Hellegers, City Planner \\\ /V PC #05-15, the City of Arden Hills Vacating a Pedestrian Way east of 1104 Amble Drive FROM: SUBJECT: ReQuested Action Consider vacating all or part of the Pedestrian Way located in Block 2 of the Karth Lake Hills plat, east of 1104 Amble Drive (Lot 1, Block 2), Overview Currently the resident to the west, at 1104 Amble Drive, has shrubs which lie east of the Pedestrian Way in the County Right-of-Way, The Pedestrian Way is a grassy strip without any plantings or structures on it. Directly west of the Pedestrian Way, the resident of 1104 Amble Drive has a wooden fence which screens the back yard fTOm Lexington Avenue. The resident has maintained the Pedestrian Way to the same standard as his own for the past 28 years. The widening of Lexington Avenue will have the County removing the shrubs east of the Pedestrian Way and replacing them with the new concrete sidewalk. This change is necessary due to the widening of Lexington Avenue which will use more ofthe Right-of-Way for street. The resident at 1104 Amble Drive contacted City Staff about vacating a 10' x 150' strip of land dedicated as a Pedestrian Way on the Karth Lake Hills plat in October, 1977, The oddity of the dedicated Pedestrian Way is that it is only adjacent to one parcel; Lot 1, Block 2. The Pedestrian Way does not continue on the platted property to the north, and there is no Pedestrian Way to the south as this property was divided through a Minor Subdivision/Lot Split rather than a plat (dedicating land is only done through platting). At their January 24,2005 Work Session, the City Council reviewed this matter and directed staff to return with a solution which would allow the owner of 1104 Amble Drive to acquire some of the property but would leave space at the comer for any future traffic light and pathway changes. \\Earth\Plannin,g\Planning Cases\2005\05-15 Vacation of Pedestrian Way by I ]04 Amble - Len Ciallus (PENDlNG)\05-J ]-05 CC Report 05- IS.doc Page 1 of3 No path or walkway has ever been constructed on the Pedestrian Way; the existing pathway is . located in the Ramsey County Right-of-way. Even after the widening and improvements to Lexington Avenue, the pathway would not be located in the Pedestrian Way. However, it would be directly adjacent to the east side of the Pedestrian Way. This could be problematic if a fence were built right up to this property line by a future property owner (the current owner has stated that he would not be installing a fence up to this point). Therefore, if the Council elects to vacate the Pedestrian Way, staff would recommend keeping a strip of at least 2 feet along the eastern edge of the Pedestrian Way. This 2-foot buffer would allow people to use the full 5-foot width of the new walkway without feeling like they were walking right next to a waiL In addition, if the intersection of Amble Drive and Lexington Avenue were ever to have a traffic signal installed in the Right-of-way, the pathway could shift to the west at the comer. Therefore, staff has also included a recommendation that if Council elects to vacate the Pedestrian Way, that the north 20 feet of the Pedestrian Way be retained for future improvements. The City Engineer, Operations and Maintenance Director, and Ramsey County have been informed of the plans and all recommend that the City not vacate the Pedestrian Way. During the Lexington Avenue widening and improvements the edge of construction entered the Pedestrian Way. Had the Pedestrian Way been vacated, then a temporary easement from the property owner (at cost to the City & County) would have been necessary. Included in the attachments is a Ramsey County Right-of-Way sketch which shows the new alignment of Lexington Avenue, the new concrete path, and the edge of construction, Should the Council elect to vacate the Pedestrian Way at the present time, Ramsey County would need a temporary easement for the construction limits while they reconstruct Lexington Avenue. The resident at 1104 Amble Drive has stated that he would be willing to grant Ramsey County a no-cost temporary easement for the construction limits while Ramsey Connty reconstructs Lexington Avenue. One way to work with this would be to require the resident to provide Ramsey County with the temporary easement, have the easement recorded with the County, and the applicant provide the City with a recorded copy of the easement prior to the vacation taking effect. . Ovtions 1. Recommend approval as submitted. 2. Recommend approval with conditions, 3, Recommend dcnial with reasons for dcnial. If the City denies the petitioners request, "...it must state in writing the reasons for the denial at the time it denies the request." 4. Table for additional information. Notice Notice was published in the Arden Hills/Shoreview Bulletin on Wednesday, May] 1,2005 and notice was prepared by the City and mailed to residents within three-hundred fifty (350) feet of the subject property. \\Earth\Planning\Planning Cases\2005\05-15 Vacation of Pedestrian Way by 1104 Amble - Len Gallus (PENDING)\05-31-05 CC Rcpon 05- . IS.doc Page 2 of 3 . . . Attachments "';, 5A-l 5A-2 5A-3 5A-4 5A-5 Resolution 05-38; A Resolution Vacating the City of Arden Hills' Interest III A Pedestrian Way in the Karth Lake Hills Plat. Location Map, other pertinent maps Statement, pictures, and plans submitted by the resident at 1104 Amble Drive Ramsey County drawing of Lexington Avenue improvements January 24,2005 Council Work Session Minute excerpt \\Earth\Planning\Planning Cases\2005\05~15 Vacation of Pedestrian \Vay by 1 ] 04 Amble - Len Gallus (PENDING)\05-31-05 CC Report 05- 15.doc Page 3 of3 . . . City Council Meetiug May 31, 2005 Attachment SA - 1 . . . ~ ~HILLS CITY OF ARDEN HILLS Ramsey County, Minnesota RESOLUTION No. 05-38 A Resolution Vacating the City of Ardeo Hills' Iuterest io A Pedestrian Way in the Karth Lake Hills Plat WHEREAS, Len Gallus, resident of 1104 Amble Drive, Arden Hills, MN, has petitioned the City of Arden Hills to vacate a Pedestrian Way which is adjacent to 1104 Amble Drive at Lexington Avenue and is located within the City of Arden Hills; and WHEREAS, on the 31" day of May, 2005, a Public Hearing preceded by published, posted, and mailed notice as required by Minn. Stat. 9412.851 was conducted before the Arden Hills Council; and WHEREAS, the Pedestrian Way currently contains the construction limits for improvements to Lexington Avenue and a temporary easement to Ramsey County; WHEREAS, the resident at 1104 Amble Drive has agreed to grant Ramsey County a no- cost temporary easement for the construction limits during their improvements to Lexington Avenue; and WHEREAS, at the conclusion of the Public Hearing, the Arden Hills Council determined that retention of the Pedestrian Way no longer in the public's interest. NOW, THEREFORE, BE IT RESOLVED that the Arden Hills Council hereby vacates the City's interest in the following described Pedestrian Way: 1. That certain Pedestrian Way in Block 2 of the Karth Lake Hills plat dated the 14th day of October, 1977; Except the following portions: a. The City retains ownership of the northerly 20 feet of the Pedestrian Way for future improvements. b. The City retains ownership of the easterly 2 feet of the entire length of the Pedestrian Way (as a buffer to the new five-foot concrete sidewalk to be constructed as part of the 2005 Lexington A venue improvements). AND BE IT FURTHER RESOLVED, that such Pedestrian Way Vacation shall be effective the day following publication in the Shoreview I Arden Hills Bulletin. ADOPTED by the Arden Hills City Council this 31" day of May, 2005. Beverly Aplikowski, Mayor ATTEST: Michelle Wolfe, City Administrator . . . . . . City Council Meeting Attachment SA - 2 May 31, 2005 \ "'JI ..~.....'" ," c;~ .."'~ /. $ ill U. tn <t " .:!' '" u CO lfJ CO .0') ",. d ; @Jlll ro {:nnt~ 1, :E~tIn ~ ,n!~~f; n,!H~n d~-l" . ~td~ l' :-;. Ht~\Hi ~d~qtt ~fii;:j~ l-t',~r.:i d','!:I,': G '\ _.,. f ;... I q~"ti-l ~, Il'!I;fll & ~f;t~l~P ril~l!W H ~~ f H ~: Q m ::; ~ ~ m (0 '!! ;; U - , ~ V1 ---l ---l '1~ , t1{:f) , ~j ~ <~ ,.,-.., ~H. _.~.l.,~__ 8nU8^'if UOl6u!X8l . ~ c, ~ ~ 'g':';;;~ !!! /.~- '" " 'i ~:2.. 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R23w - State of Minnesota I s s. County of Ramsey r }J:;The foregoing instrument was acknowledged before me tois /'1' Ydoy of&(!r-~.- _ _ ,1977 by Charles 0_ Amble and Morlys Amble, husband and wife, <t'~_~~~-r-. _ _ rilafary Public. Ramsey County, Minnesota I I :~~ J .,J Zj id .~, 4"~. <f CD I'" It)~ N ,"" Ii 010 -_ :gZI~ 47 0 :::::.z -.." :_u,w (,_. z 4_. _ -~. 0 .z:_ .. Sl~ 1.:.": : : I&J U~ 1 - -' . . . City Council Meeting Attachment SA - 3 May 31, 2005 e - e . LEXINGTON A VENUE . / EXISn.LEXINGTON 13'-6.0' w > I---< Ct: H W -! P=I 2: <[ . 12' t 9'-6.0' t NEW' LEXINGTON AVE . '" '" '" '" ,... '" .... '" >II w '" .... '" '" '" '" '" ..... '" .... '" '" '" '" .... ...... '" .... '" '" ...... ..... .... ..... .... '" '" '" '" '" .... ..... '" '" ..... '" ..... ..... ....... .... ..v w '" '" w w -..j. ..... '"' '" '" '" '>II '" ..... ..... '" .... ..... '" .... '" '" ..v ..... '" ...... '" w .... ..... ..... w '" '" '" '" ..... '" .... '" ~ ~ ~ '" ..... '" ..... '" .... ..... 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The property, including the new fence, landscaping, & filling in the low lying areas of the 10" pedestrian way to be upgraded at homeowner expense, which will visually enhance the corner property at the entrance to Amble Drive. Note: It has become of more importance that the low area at the South end of the 10' dedicated pedestrian way, and adjacent to the Sabot residence be filled in, They have been given approval to add an additional driveway, which could have a storm water impact to the adjacent property. The Arden Hills pedestrian way area should be brought up to better meet the higher terrain of the Sabot property, 2. Helps to correct the legal building code setback problem of this property. Homeowner Advantages: L With the addition of the 10' pedestrian way to be officially part of my property, I will only be 10' out of building code setback otfLexington Ave., instead of the present 20'. 2. Vacating the pedestrian way will help the resale of my home by appearance, lot size, and that the property is fully owned by the homeowner, without limitations. 3. Improve privacy and help to reduce noise from Lexington Ave by better positioning a new 6' privacy fence to be 4' otfthe sidewalk, and at grade level. 4. With the reconstruction of Lexington Ave., I could maintain and enhance the entire property including: filling in the low area at the rear of the Arden Hills land, add fencing and landscaping as appropriate, Please see proposal drawing Leonard E Gallus ~C2P~ Homeowner 1 104 Amble Drive Arden Hills, MN 55112 . City Council Meeting Attachment SA - 4 . . May 31, 2005 . . e ~~.....1 ---, 19.5' 1-- r r---...-l r-M'~" . I ! . I I I I'-. +-: IJ) '-,"-.. (I) :-::: -"'" is ,1; " <..J -.I '...., --] I 20' .....~ i/ i 1 , ( , , I "'-~--., j , r---'-'~'-' L~J LO C ("-I (J) ( i '-( '- o CL ~"_.._~-..........--,. ; '--, I I Ll -"'-. -=-1... "-.. ;:.- ',,-,.., I r Ll i i , f r1 ! i I h., *' ~ en ," u:. :.:1 .'-----.,- + 0J ' 0: !'0 9.5( o o + o o !'0 o o + ~ o n ,-" "..~, C) OJ m c< 0)1 \ 0 .. (, ,*' I.,,; -< ~ .. /. .:) ro r~ '" 7':-7'-. 1.-; r..... ('l , I C L . . . City Council Meeting May 31, 2005 Attachment SA - S . . . Operations and Maintenance Director Tom Moore stated that the PTRC will be working on a formal policy for naming trails in the future, Mayor Aplikowski agrees with the plan to name a trail after former Governor Anderson. Councilmember Larson is comfortable with the proposal but would like to have the PTRC create some guidelines for naming or renaming parks and trails in the City. The City could also consider purchasing a plaque honoring Governor Anderson at the trail location. Councilmember Holden noted that the PTRC vote regarding the naming of the trail after Governor Anderson was not documented in the December 14, 2004, meeting minutes. Councilmember Larson said that he would confer with the PTRC to make sure that there is a consensus for naming a park trail after former Governor Elmer Andcrson, Installation of Enerl!Y SavinI! Traffic Sil!nal LED Lil!hts Operations and Maintenance Director Tom Moore provided a brief overview to the City Council regarding the possible cost savings to the City if our traffic signals are switched over to LED lights, Mr. Moore stated that this is not a state mandated project and that the existing traffic lights are working properly, but it could result in a considerable energy cost savings for the City in the long run, The initial cost to the City would be approximately $7,000, The projected energy cost savings could be roughly $27,360 per year. City staff has reviewed the latest utility bill from Ramsey County regarding the traffic signals, and believe that the estimated cost saving numbers are accurate. Ramsey County notified the City of the energy rebate program through Xcel Energy, Ramsey County would like to have each City in the county operating the same type of LED street light for improved maintenance activities, Mr. Moore noted that there is a February deadline for this program if the City does decide to proceed. Mayor Aplikowski requested that City staff provide the City Council with potential funding options, She feels that the project is a good idea, but docs request that City staff explore the financial and budget implications of this proposed project. 1104 Amble Drive-Requested Pedestrian Way Vacation-Karth Lake Hills plat; Block 2 City Plmmer Peter Hellegers informed the City Council that the resident at 1104 Amble Drive has contacted City staff and requested that the City Council review the possibility of vacating the Pcdestrian Way shown on his property plat from 1977, The property abuts a 10' by 150' strip dedicated as a Pedestrian Way, At this time, a path has never bcen constructed at this location. Thc resident at 1104 Amble Drive currently has some shrubs/hedges in the Ramsey County 6 right-of-way to the east ofthe pedestrian Way. The resident has essentially adopted the land and . has maintained the area as his own for the past 28 years. Typically lots that are designated as R-I are supposed to have minimum dimensions of95 feet by 130 feet and 14,000 square feet of area. Front dimensions for this property are 83 feet and do not meet the City's current standards, City staff is seeking direction from the City Council regarding whether or not the City should vacate this piece of property. Councilmember Grant asked if the City currently owns the property. City PlalU1er Petcr Hellegers stated that the property was dedicated to the City on the plat. Councilmember Rem asked if this piece of property is in addition to the existing right-of-way along Lexington Avenue, City PlalU1er Hellegers said that this piece of property is in addition to the existing right-of-way. Councilmember Larson said that he is very reluctant to vacate this piece of property. Mayor Applikowski asked staff members if a variance is necessary for this property, Mr. Hellegers stated that technically a variance would be necessary to remedy the non- conformity of the lot in meeting the City's current R-I requirements. . Mr. Len Gallus (1104 Amble Drive) stated that his lot is grossly undersized in comparison to the other homes in his ncighborhood due to the 10 foot Pedestrian Way easement. Councilmember Larson said that he is sympathetic to Mr. Gallus situation, but the City calU10t address all of the residential home owner issues in the City. Mr. Gallus questioned why the City issued the original building permit in 1977. Why was the origin a] permit approved ifit did not meet the R-l standards? City PlalU1er Hellegers stated that it is possible that the City Codes have changed over time making this property non-conforming to today's R-] zoning district. Mayor Aplikowski asked if the City has any other Pedestrian Ways, Mr. Hellegers said that the City has a Pedestrian Way near Colleen Avenue and Norma Avenue, The pedestrian ways are dedicated to the City through platting. Councilmember Grant asked if the City would benefit at all if this property is vacated. City Planner Hellegers stated that the City has not used thc property for 28 years, but it may be beneficial for the City to hold onto the property in thc event that it necessary for future road or infrastructure improvcmcnts. . 7 . . . Councilmember Larson asked Mr. Gallus if he would be willing to purchase the land from the City. Mr, Gallus said that he would be willing to consider this option. Mayor Applikowski asked staff to work with the City's Attorney and Mr. Gallus to see if a legal agreement can be worked out between the two parties, The agreement would entail that Mr. Gallus is able to take over the property and that the City could reacquire a portion of the land back if it is necessary for future infrastructure and road improvements, Direction was given by the City Council to work out an agreement with the resident that allows the City to retain ownership of the boulevard comer. The City would in-return vacate the remainder of the property and allow the resident to continue to maintain and use the property as his own. City Council members did request that the agreement allow the City to reacquire the land in the future if it is determined to be necessary. TCAAP Update *Councilmember Rem left at approximately 7:00 PM Community Development Director Scott Clark provided the City Council with a review of the current activities regarding the TCAAP project including an overview of the January 20th teleconferen<;;e call with the GSA, Army, and regulators, Community Development Director Clark prcsentcd a draft project flow chart and reviewed for the City Council the four areas in which the City must move forward in order for the City to meet a June 15t offer to purchase letter. They are the following: . Environmental Process . Land Use Process . Transfer Process . Master Development Agreement On January 31 st, members of the City Council will be participating in a work session to discuss public financing options for the City Council to consider regarding the TCAAP project. Mr. Clark mentioned that the City Council must establish business terms for this process to move forward, It is also important that more escrow funding be unlocked to fund this project in the near future. Councilmember Holden asked if the FOST and FOSET would be reviewed at the same time. Community Development Director Clark said that the FOST and FOSET are scheduled to be reviewed at the same time, Councilmember Holden asked how many acres are involved in the early transfer process, 8 , , ~ '1\~HILLS City 01 Arden Hills Request for Council Action Prepared by: PH Dept.: Com. ev. Council Mtg, Date: 5/31/2005 Final Action Needed By: - Agenda Item '. PC # 05-05: RezoninQ Old City Hall/ PW Site from R-1 to NB Budgeted Amount: $0.00 Actual Amount: $0.00 Funding Source: $0,00 Council Action Request: Consider adopting Ordinance # 364 which would rezone the western portion of the old City Hall/Public Works site from R-1: Single Family Residential to NB: Neighborhood Business, Staff Recommendation: Adopt Ordinance #364 which would rezone the western portion of the old City Hall/ PW site from R-l: Single Family Residential to NB: Neighborhood Business. Advisory Commission Action: Commission Planning PTRC Date Action Not Supporting Documents (which are attached to this Action Form): . 1ZI Memo/Letter: Staff Report to the City Council - May 31. 2005 D Resolution (No. 1ZI Ordinance (No,364) D Engineering Recommendation: D Attorney Recommendation: DOther: Financial Implications: Administrator/Staff Comments: . Page 1 of 2 . ~ ~~~ILLS MEMORANDUM DATE: May31,2005 Agenda Item 6.A TO: FROM: Mayor and City Council Peter Hellegers, City Planner ~ SUBJECT: PC #05-05, the City of Arden Hills Old City HalllPW Site Rezoning from R-l to NB Requested Action Consider rezoning the western portion of the old City HalllPublic Works site from R-l: Single Family Residential to NB: Neighborhood Business, Planninl! Commission Recommendation . Recommendation and Conditions of Approval At their May 4, 2005 meeting the Planning Commission reviewed Planning Case #05-05 and unanimously recommended approval (6-0) of the Rezoning as proposed. Options 1. RecC'mmend approval as submitted (4/5 majority required), 2. Recommend approval with conditions (4/5 majority required), 3. Recommend denial with reasons for deniaL If the City denies the petitioners request, ".,.it must state in writing the reasons for the denial at the time it denies the request" 4, Table for additional information. Attachments 6A-1 Ordinance No. 364 Rezoning the Old City Hall 1 PW site 6A-2 Staff Report to the Planning Commission - May 4,2005 6A-3 Planning Commission Minute Excerpt - May 4, 2005 . \\EarthIPlanning\Pbnning Cascs'2005\05-0S Rezoning R-l to NB Old City Hall & PW Site (PENDING)\05-}1 -05 CC Report Old City Hall Rezoning 05-05.doc Page 1 of 1 . . . City Council Meeting May 31, 2005 Attachment 6A - 1 . ~ ~~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA ORDINANCE NO, 364 AN ORDINANCE ADDING SECTION IV.F. TO THE ZONING ORDINANCE OF THE CITY OF ARDEN HILLS REI~ATING TO THE RE-ZONING OF PROPERTY. THE ARDEN HILLS CITY COUNCIL HEREBY ORDAINS THAT SECTION IV. E. AND SUBDIVISION 4F IS HEREBY ADDED TO ZONING ORDINANCE #291 OJ<' THE CITY OF ARDEN HILLS TO READ AS FOLLOWS: Section IV. F. Re-Zoning The official map for the City of Arden Hills has been amended to indicate that the described properties have been re-zoned as follows: . Described Properties. The following properties arc generally located south of Highway 96, west of Ham line Avenue, cast of Keith son Drive, and north of Arden View Drive and are also described by the following legal description: The west 397.5 feet ofthe north 276.82 feet of the Northeast Quarter of the Northwcst Quarter of Section 22 Township 30 Range 23 is rezoned from an R-I zone (Single Family Residential District) to a NB zone (Neighborhood Business District) pursuant to Ordinance #364. Effective Date. This Ordinance shall become effective the day following its publication. Adoption Date. Passed by the City Council on the City of Arden Hills the 31 st day of May, 2005. BEVERLY APLlKOWSK1, MAYOR ATTEST: MICHELLE WOLFE, CITY ADMINISTRATOR . Publication Date, Published on the day of ,2005. . City Council Meeting May 31, 2005 Attachment 6A - 2 . . . . . ~ ~HILLS MEMORANDUM DATE: PC Agenda Item 4. C May 4, 2005 TO: Planning Commission FROM: Peter Hellegers, City Planner SUBJECT: PC #05-05, the City of Arden Hills Old City Hall/PW Site Rezoning from R-l to NB Requested Action Consider rezoning the western portion of the old City Hall/Public Works site from R-l: Single Family Residential to NB: Neighborhood Business. Backl!round Property Proposedfor Rezoning The property proposed forrezoning is PID number 22-30-23-21-0141 (includes former PID's 223023210004,223023210003,223023210002) and is shown as parcels A, B, & C on the attached location map, The property is generally located to the west of Ham line Avenue, to the north of Arden View Drive, to the east of Keithson Drive, and to the south of Highway 96. The legal description of the property is: the west 397,5 feet of the north 276.82 feet of the northeast quarter of the northwest quarter of Section 22 Township 30 Range 23, Overview The property that is proposed for rezoning houses the former Arden Hills Publie Works Facility and at one time also housed the Arden Hills City HalL The property has been vacant since the Operations and Maintenance department moved into the Ramsey County Partners Public Works Facility on the north side of Highway 96, Direetly east ofthe property is vacant land which is also 0"'11ed by the City of Arden Hills, Combined, the properties equal about 6,83 acres when Highway 96 right-of-way is subtracted. However, the eastern portion of the property was zoned as Neighborhood Business and the western portion of the property remained as R-l Single \\Earth\Planning\Planning Cascs\2005\05-05 Rezoning R-llo NB Old City Hall & PW Site (PFNDlNG)\05-04-05 PC Report 05-05.doc Page 1 of3 Family Residential. The proposed rezoning would make the zoning land use consistent with how the future land use is guided in the Comprehensive Plan. . Directly east of the property is vacant land and the day care center is further east; north of the property is Highway 96; south of the property is the townhouse development; and to the west is the single family homes along Keithson Drive. Surrounding Area North Public and Institutional cc: Civic Center District R,3: Townhouse and Low Density Multiple Dwelling District Institutional East Neighborhood Business N,B: Neighborhood Business R,I: Single Family Residential District Single Family Attached Residential Vacant I Neighborhood Commercial Single Family Detached Residential South Medium Density Residential West Low Density Residential Site Data Neighborhood Business Vacantllnstitutional R-I: Single Family Residential District 2,5 acres (I 10,036 square feet) N/A Slopes downward to the east Notice Notice was published in the Arden Hills/Shoreview Bulletin on Wednesday, April 20, 2005 and notice was prepared by the City and mailed to residents within three-hundred fifty (350) feet of the subject property. Compliance with the Comprehensive Plan The Comprehensive Plan shows the property as NB: Neighborhood Business while our Zoning Map shows the property as being zoned R-l: Single Family Residential. Rezoning the property from R-l to NB will make the Zoning consistent with the land use as guided by the Comprehensive Plan, \\Earlh\Planning\Plarming Cases\2005\05-05 Rezoning R-] to Nil Old City Hall & P\V Site (PENDfNG)\05-D4-05 PC Report 05~05_doc Page 2 of 3 . . . . Staff Recommendation In Planning Case #05-05 staff recommends rezoning the wesl 397.5 feet of the north 276.82 feet of the Northeast Quarter of the Northwest Quarter of Section 22 Township 30 Range 23 from R- I Single Family Residential to NB Neighborhood Business, Options 1. Recommend approval as submitted, 2, Recommend approval with conditions. 3, Recommend denial with reasons for denial. If the City denies the petitioners request, "...it must state in writing the reasons for the denial at the time it denies the request." 4, Table for additional information, Attachments 4c- I Location Map, Zoning Map, Future Land Use Map (Comp Plan Map) 4c-2 Excerpts from the Comprehensive Plan \\Earth\Planning\Planning Cas.es\2005\OS-OS Re7.0ning R-l to NB Old City Hall & PW Site (PEN()[NG)\05~04-05 PC Report OS-OS_doc Page 3 of3 . . . Planning Commission Meeting Attachment 4c - 1 May 4, 2005 . o '" o '" . . __ J ---- ... , [ 'C ~ >-- < ::;: ::;:; o .&~'llt ~-----:s6 S6 ,<;6 ,16 ~ . 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Zoning Map D D - D D D - - - - D E"J - - - o D Disc/aimel Legend Zoning Districts R-1: Single Family Residential R-2: Single & Two Family Residential District R-3: Townhouse & LO'N Density Multiple Dwelling R-4: Multiple Dwelling District B.1: Limited Business District B-2: General Business District B-3: Service Business District 8-4: Retail Center District N.S: Neighborhood Business G-B: Gateway Business 1.1: Limited Industrial District 1.2: General Industrial District I-N: I-FLEX District CC: Civic Center District Railroad Right-of-Way Water TheL.tJ/lillgDi.<ltkIIXdgllflliollSre. p'wellledQIIIJI!SJl1(lf',.YJFT"'f!",IiiIOlheCiry afArJeIl Hills Official 'b:mmgMi'l' Qt;e<ljQlIsco"'''millg,h,,7.m'''JgM~p ..JlauJdhedireclcdIO the CrlyofArw! Hil/:; o:mi"gJJe3;,,'l(l!imlS~re"u!b-eMIOC"tI!'K'i. ,,1"'L\.~re{",lor"o7.o1ji<IgO"ditJtl}){:elorcompJe/einfiT711iJIi,," N + SoLlf<<' R.o,,...,yC,,,,,ty Ci'yofArd,nllill. 2000 o 2000 Feet Map Dale: March 31, 2004 e ~ ~~ILLS Future Land Use Map Figure 3.2 Legend Future Land Use D LOR: Low Density Residential D MDR: Medium Density Residential e - HDR: High Density Residential D MR: Mixed Residential - NB: Neighborhood Business - COM: Commercial D MB: Mixed Business D IND: Industriai D PII: Public & Institutional D Park - Park Preserve D Right,of,Way D Water . County' Rd. D Di,,,:l~ilflel n"'l",r.pmJC",iWiI'!OIlDesigiUlliOIlSrI!- pn'S<'IfIlM,mt!lfs'''''Pc"r'''''l'mllilotiJeCiIY 'f Ardim Hill., PrJIiC)'for Lalid UscMmmgmem QwSlionsCOllcemi"glhc{.(IJldl,~"'MatJ shouldhedirt!<',ed!OlheOryo(A'uCOIliills. l.nlldUseDc,ifl'IilliGllSiVI!s,u,jecllfJdlilllge. pi"'''''rtferlolheComprdll!tl.iI'<!P/(lIIfor co/!I{JI,'/cLtilidU,o;cDest'nptl"'!iI, N + Sourc,,; t(om'<~Cuu"ty Cilyof,o,""'"H;II.' 2000 o 2000 Feet Map Dale: April 13, 2004 . Planning Commission Meeting Attachment 4c - 2 . . May 4, 2005 . . . 1. Low Density Residential (LDR) - is the traditional single family residential land use category. A density range of3 - 5 units per acre maximum density is allowed. 2. Medium Density Residential (MDR) - is the apartment and townhome land use category providing for density of up to 8 units per acre. Mobile homes are also in this category. 3. Hie:h Density Residential (HDR) - is the apartment and townhome land use category providing for density of up to 12 units per acre. Mobile homes are also in this category. 4. Mixed Residential (MR) - is the category designed to provide for a variety and mixture of housing types, particularly in the TCAAP area. This category will allow for those types of units not readily available now in the city. The triangular area bounded on the: south by Highway 96, east by Highway 10, and the west by 1-35W contains the Arden Manor mobile home neighborhood. As development in the 1-35W sub-region increases, it is anticipated this area will be considered for redevelopment. Its location and access characteristics make it an appropriate site for a commercial and/or industrial use. This evolution of land uses is not anticipated to occur from government intervention, but rather private market forces. It is not expected that any redevelopment will occur within the next ten years, and the land use designation and zoning are not proposed to be changed at this time. With development proposals, the city may want to entertain changing the designation and zoning for commercial and/or industrial uses and removing the residential designation. Market forces and the pace of development on TCAAP will determine the timing of this expected change. ", Neighborhood Business Neighborhood Business designates small, isolated areas for neighborhood commercial land uses when they are compatible with surrounding residential uses. Commercial uses that are high traffic generators, noise generators or otherwise not compatible with residential neighborhoods, are inappropriate. Typically Neighborhood Business areas will be located on intersections or nodes that are on the edge of residential areas, are not desirable sites for housing or have traditionally been occupied with neighborhood services, Commercial Commercial designates areas for a broad range of retail shopping and services to meet the needs of the community, Compatible uses such as office buildings are also intended for this area, City of Arden Hills Comprehensive Plan, 1998 Land Use Page 18 There are scattered medium density residential sites throughout the City, The . largest developed areas include the townbomes adjacent to Hamline Avenue and south of Highway 96, and the Arden Manor manufactured home neighborhood between Highway 10,96 and 1-35W, There is an apartment building located south of County Road E and west of Lexington Avenue and an apartment building near Round Lake on Parkshore Drive. Neighborhood Business Sites that met the criteria and are designated on the land use map for Neighborhood Business include: Neighborhood Business Sites County Road E and Old Highway 10 Northeast comer of Co, Road D and Cleveland County Road D and New Brighton Road County Road E2 and New Brighton Road County Road E2 and 1-35W <<'Hi hway 96 west of Hamline 4703 Ig way Current Use Lindey's Restaurant Vacant Coffee Shop Baptist Conference Council Vacant 01 i Hall and Da care Big Ten Supper u Commercial Most of the City's conunercial uses are located adjacent to County Road E, between Highway 51 and Lexington Avenue. This area serves the day-to-day retail needs of Arden Hills' residents, containing a mixture of retail, office, industrial, restaurants, and other conveniences. It contains some underutilized parcels resulting in a mixed conunercial and general business center. Although the mix of uses does not always provide for ideal transitions between land uses, the area is highly occupied and functioning well for many small and start up businesses. Industrial . The City's industrial land is located adjacent to 1-694 on the eastern and western edges ofthe community. Arden Hills serves as corporate headquarters for large corporations, such as Land O'Lakes, Cardiac Pacemakers, Mutual Service Insurance and Control Data, as well as home to hundreds of smaller companies. The Gateway Business District at the northeast corner ofInterstates 694 and 35W is in the developing stages. The Gateway Business zoning district is designed to promote high quality, unified, large-scale development; to take advantage of the site's visibility; to protect the site's environmental resources; to promote . CiIy of Arden Hills Comprehensive Plan, 1998 Land Use Page 20 . . . I. OVERVIEW The Comprehensive Plan guides the future of the community, It sets overall direction and provides a framework for on-going decision making within the City. It contains the larger picture goals and policies as well as some specific items to achieve the City's preferred future. The following items address specific measures to be taken by the City to implement the goals and policies of the Comprehensivc Plan. II. IMPLEMENTATION OF SPECIFIC CHAPTERS Chapter 1: lntroduction The 2000 Census data will be available in 2002. This section will need to be revised to show the new statistical data. Chapter 3: Land Use South of Highway 96 Since nearly all of the land south of Highway 96 is developed, the emphasis in this area is to continue to strengthen the neighborhoods, parks and trails, businesses and employment centers that exist. Tbe City will continue to work with the North Mctro 1-35W Corridor Coalition on common issues that work to protect and improve neighborhoods. I, Develop a new zoning district, Neighborhood Business, designed to allow some limited, compatible commercial uses to be located on the edge of neighborhoods, providing goods and services for nearby citizens. 2. Continue to work with the North Metro 1-35W Corridor Coalition on sub-regional planning processes and issues in order to support the Land Use Plan for Arden Hills. 3. Address inconsistencies between the Comprehensive Plan and Zoning, as follows: City of Arden Hills Comprehensive Plan, 1998 Implementation Page 100 Inconsistencies Between Zoning and Comprehensive Plan . TCAAP North of Arden Manor Bruebe Lane High School, All Parks, Library, Northwestern and others Bethel East Lexin ton/Fox Area South of Harriet South of Presbyterian Homes Southeast of Cleveland and Stowe Ba tist Church Council 1-2 and R-I R-3 R-3 R-l B-1 B-3 and B-4 R-3 R-2 Institutional Industrial LOR MOR R-3 LOR R-I Commercial 4. Review all proposed land use and development proposals with respect to the Natural Resources section of the Plan. . TeAAP The redevelopment of the TCAAP area will occur over a long period of time. The overall land use plan sets the general parameters to work with. I, The TeMP Phase II Implementation Study will be undertaken in 1999. It will guide the City in its land use decision making and development processes, and provide much more detailed and specific information on land uses, housing, transportation and utilities. 2. In the immediate time frame, the City is working on a number of fronts, including: obtaining a land lease to build the City Hall facility, working with other agencies to develop a joint maintenance facility, securing release of the initial 50 acre site along the northwestern side of the property, involvement in the County Road I improvements related to development . City of Arden Hills Comprehensive Plan - 1998 Implementation Page 101 . City Council Meeting Attachment 6A - 3 . . May 31, 2005 . . . ARDEN HILLS PLANNING COMMISSION - MAY 4, 2005 5 Commissioner Bezdicek asked what the ramification of their decision would have on Mr. Peterson's negotiations with Ramsey County. Mr. Peterson responded he believed their decision would have somewhat of an impact on what would happen, Chair Sand asked to what extent the Commission had the authority to do this, He noted they did not have the authority to deny this because the County had eminent domain authority, Mr. Clark respondcd what was important was to make sure the Commission separated the issues that Mr. Peterson's remedies were an issue between the County and the property owner and what the City was doing was saying there would be an impact to the property in the structure being non-conforming once the road was widened and therefore, the Peterson's would need a variance for the non-conforming structure, which would be helpful to both the Petersons and the City, Commissioner Larson asked if granting the variance at this time was timely considering the negotiation was not complete, He asked if this favored the County. Mr. Clark replied all they were remedying was one issue, which was the non-conformity. Commissioner Larson asked if the variance was in place, did this aid the County because there was not the non-conformity question. Mr. Clark replied from hif perspective, the answer would be no because there was two issues - the non-conformity and the negotiations the County was having with Mr. Peterson. Commissioner Zimmerman asked what brought this to the City's attention. Mr. Clark responded staff had looked awhile ago at what properties were going to be affected with this road reconstruction and staff wanted to make sure that these types of requests were all done at one time, He noted it was quite common to look at these issues in advance of a road reconstruction, Chair Sand asked if the County had already prepared a survey, Mr. Clark replied they had. Chair Sand indicated the only thing that had not been established was the amount of compensation to the Petersons, Mr. Clark replied that was correct. Chair Sand closed the public hearing at 7:49 p.m. Commissioner Thompson moved, seconded by Commissioner Zimmerman to approve Planning Case No. 05-14, The City of Arden Hills, 1105 Amble Drive, Variance, The motion carried unanimously (6-0). c. PLANNING CASE 05-05: CITY OF ADEN HILLS. 1245 WEST HIGHWAY 96: REZONING THE OLD CITY HALL AND PUBLIC WORKS SITE 0440-1450 HIGHWAY 96) FROM R-l: SINGLE-FAMILY RESIDENTIAL TO NB: NEIGHBORHOOD BUSINESS Mr, Hellegers stated applicant was requesting rezoning the western portion of the old City Hall/Public Works site from R-l: Single Family Residential to NB: Neighborhood Business. ARDEN HILLS PLANNING COMMISSION - MAY 4, 2005 6 Staff recommended rezoning the west 397.5 feet ofthe north 276.82 feet of the Northeast . Quarter of the Northwest Quarter of Section 22 Township 30 Range 23 from R-l Single Family Residential to NB Neighborhood Business, Chair Sand opened the public hearing at 7:56 p,m. Chair Sand invited anyone for or against the rezoning to come forward and make comment. Greg Redman, 1480 Arden View Drive, representing Arden Hills Townbome Board, stated he was representing the association directly south of this proposal. He stated the Board did not have any specific objection to the rezoning, but the Board did have some concerns with the subsequent development proposal and reserved the Board's right to comment on that proposal. Chair Sand noted they were reserving comments as to how the property was developed, but they did not oppose the rezoning. Mr. Redman replied that was correct. Gail Van Buskirk, 1390 Arden View Drive, stated she was opposed to the zoning change because she believed the Comprehensive Plan was taking over green space and making more industrial area. She expressed concern that there were a lot of industrial areas being put in the City. She noted she was not opposed to residential homes or townhomes being put in this area, but she did not want to see a neighborhood business put ;n, She indicated . putting in a neighborhood business would be a waste of this site, Chair Sand closed the public hearing at 8:00 p,m, Commissioner Larson moved, seconded by Commissioner Thompson, to approve Planning Case No. 05-05, the City of Arden Hills, 1245 West Highway 96; Rezoning the Old City Hall and Public Works Site (1440-1450 Highway 96) from R-I: Single Family Residential to NB: Neighborhood Business, Commissioner Bezdicek asked if this was consistent with the Comprehensive Plan. Mr. Hellegers responded it was, The motion carried unanimously (6-0). D. PL"'NNINC C'.SE fJ5 12: ROYAL O""'KS REALTY, IfJfJfJ COUNTY ROAD E WEST, SIIOREVIEW, MINNESOTA; M.\STER AND FIN.\.L PUD ....ND PRELlMIN}.RY PLAT FOR OLD CITY H.\.l~L L...."'D PUBLIC WOR.'{S SITE (1140 145fJHICHWAY9ti Continued to the June 1,2004 Planning Commissioner meeting, UNFINISHED AND NEW BUSINESS None, . e . . ~ ~HILLS City of Arden Hills Request for Council Action Prepared by: SJ Dept.: Admin Council Mtg. Date: 05/31/2005 Final Action Needed By: 05/31/2005 Agenda Item .. Motion to Aoorove the Aooointment of Financial Conceots. Inc. as the City's Health/Insurance Broker Budgeted Amount: NA Actual Amount: NA Funding Source: NA Council Action Request: Motion to approve the appointment of Financial Concepts, Inc. as the City's health/insurance broker, effective June 1,2005. Staff Recommendation: City Council approval of appointing Financial Concepts, Inc. as the City's health/insurance broker. Advisory ComlTlission Action: Commission Date Action '" , Not Applicable Not ApplicablEl, Not applicable Planning PTRC Sllpporting Docllments(which are allached loiiiis Action Form): [8:J Memo/Letter: o Resolution o Ordinance (No, o Engineering Recommendation: o Attorney Recommendation: [8:J Attachments . List of Interviewed Insurance Brokers . Financial Concepts, Inc, Reference Checks . Request for Proposal Response from Financial Concepts, Inc, . Health and Welfare Service Agreement between the City of Arden Hills and Financial Concepts Financial Implications: Not Applicable- Administrator/Staff Comments: \\Earth\Admin\Assistant City Administrator\Requests for Council Action\2005\Finanical Concepts Health Insurance Broker-May 31, 2005,doc . . . ~ ~~HILLS MEMORANDUM DATE: May 23,2005 Agenda Item 6.B. TO: Honorable Mayor and City Council Members Michelle Wolfe, City Administrator Schawn Johnson, Assistant to the City Administrator~ FROM: SUBJECT: Recommend the Appointment of Financial Concepts, Inc. as the City of Arden Hills New Health/Insurance Broker Backl!:round In March, City staff began the search for a new health/insurance broker and mailed out eighteen requests for proposals (RFP's), Out of the eighteen RFP's that were mailed out, ten health insurance brokers expressed interest in this contract In order to narrow down the field of potential candidates, the City Administrator, Finance Director, and Assistant to the City Administrator asked each of the ten potential brokers to give a verbal presentation on the services that their company provides, After meeting with the potential brokers, City staff contacted the different references that were submitted by each of the ten individual brokers, After reviewing and discussing the interview process, reference checks, and bid proposals, City staff believes that Financial Concepts, Inc. of Minnetonka is the company that would best serve the health and insurance needs of the City and its staffmembers. Why did City Staff initiate this Process? The City of Arden Hills has been with the same health and insurance broker (TC Fields) for over ten years, We also have a second broker for life insurance and long-term disability policies. We rccently discovered some overlaps in coverage's that we receive from the two brokers, which caused us concern about the current level of scrvices. Staff felt that perhaps we would be better served by consolidating all of our policies under one broker. In addition, staff believes it is generally a good practice to check the market periodically to review professional services contracts. As part of this review, City staff had the opportunity to review different insurance benefit packages, wellness programs, and internet-based information that is currently available. Throughout this process, City staff has also become more aware of additional services that are available through tJle broker's commission fees that would be new, beneficial, and potentially a cost savings to the City, For example, Financial Concepts would assist City staff with COBRA \\Ea11h\AdminIAssistant City AdministratorlMemo's and Letters\2005\Financial Concepts. Inc-CC Memo,DOC compliance issues, employee benefit surveys, online employee resources, education, and . wellness initiatives. The various brokers all offered different levels of services. Some offered more than others. The selection of broker we have made is based upon the number and quality of services and resources they offer, the quality of the presentation, the experience, background, and depth of staff, and references. There were many good brokers that we met with, and staff feels several would represent us well. However, at this time staff believes that Financial Concepts is the best fit to the City of Arden Hills. All of the services offered by the broker are included in the commission fees paid to them. Since the City of Arden Hills is considered a small organization (fewer than 50 employees), compensation is set per the carrier's standard commission agreement. (Any broker that the City selects will be paid on a commission basis. In addition, if we choose to deal directly with the insurance providers and not work through an insurance broker, the City's insurance premiums would not decrease as a result.) Brokers are paid on the basis of insurance premiums paid through the City. The City of Arden Hills currently operates in this manner and therefore will not experience any financial impact or change in terms of how the new broker would be compensated, Staff is also hopeful that the new broker will be able to help us find new ways to reduce our claim totals, monthly premiums, and possibly save the City money in the future, Reference Checks City staff recently contacted the Cities of Champlin, Maplewood, and Roseville regarding the services provided by Financial Concepts, Inc. The contact person at each of the three municipalities ranked Financial Concepts, Inc. very high and would highly recommend this company to the City of Arden Hills. For your review, copies of the e-mailed references from the three respective cities are attached, . Recommendation Staff recommends City Council approval of Financial Concepts, Inc, as the City of Arden Hills Health/Insurance Broker. Attachments. List of Interviewed Insurance Brokers II Financial Concepts, Inc. Reference Checks .. Request fOT Proposal Response from Financial Concepts, Inc. . Health and Welfare Service Agreement between the City of Arden Hills and Financial Concepts . . City of Arden Hills 2005 List of Interviewed Insurance Brokers . Acordia Benefits . Johnson-McCann . Nesbit Agencies . Virchow & Krause LLP . Financial Concepts . Stanton Group . TC Field & Company . AT Group . Health Systems Innovations . HR Total . . Zeference Checks for Employee Benefit Services Company Page I of: Johnson, Schawn From: Sherrie Le [Sherrie,Le@cLmaplewood.mn,us] Sent: Monday, May 02, 2005 4:04 PM To: schawn.johnson@ci,arden-hills,mn,us Subject: RE: Reference Checks for Employee Benefit Services Company . iere are my answers below. ,herrie 'ro m: schawn ,joh nson@ci.arden-hills.mn.us [mailto:schawn ,joh nson@ci,arden'hills.mn.us] lent: Monday, May 02, 2005 2:06 PM fo: Sherrie Le lubject: Reference Checks for Employee Benefit Services Company ii Sherri: -he City of Arden Hills is in the process of evaluating potential health/insurance care brokers and Financial Concepts, Inc, listed YOl IS a reference, I was wondering if I could take a few moments of your time to answer the following questions: !. What are the broker's areas of responsibilities in your City? Health and dental insurance, Section 125 plans and EAP " In your opinion, what does the broker do well? Negotiates rates, communication with me and with labor-managemenJ.. :ommittee, accuracy, knowledge, resolve problems . I. Are there any performance issues or problems that you have had with the broker? No I. Does the broker do a good job educating and relating to your staff regarding employee benefit packages? Yes >. Is your broker timely in returning phone calls and answering any questions or concerns that you may have? Very timely esponses i. Does the broker have any service limitations or problems meeting your employees benefit needs? Not that I can think of What type of letter grade would you give your broker? Probably an A compared to anyone we have used before, I. Would you recommend this company to the City of Arden Hills? If not, please explain, Yes I would 'hank you again for your assistance in this matter, ,chawn P Johnson ;ity of Arden Hills \ssistant to the City Administrator 'hone Number: 651-634-5125 'ax Number: 651-634-5137 . rhis email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this mail in error you are hereby notified that any disclosure, copying, distribution, or action taken in reliance on the contents of these documents is strictly prohibited. Please otify the system manager and the sender immediately and arrange for the return or destruction of these documents. Please note that any views or opinions presented in thi~ mail are solely those of the author and do not necessarily represent those of the City. Finally, the recipient should check this email and any attachments for the presence of 5/3/2005 ~eferencc Check on Financial Concepts, Inc. Page 1 of: Johnson, Schawn II: Julie Tembreull Utembreull@ci.champlin,mn,us] Tuesday, May 03, 2005 11:05 AM To: schawn,johnson@ci.arden-hills,mn,us Subject: RE: Reference Check on Financial Concepts, Inc, ;chawn: ;ee my response below (in blue). ulie ---Original Message----- 'ro m: schawn .joh nson@ci.arden-hills.mn.us [mailto :schawn .joh nson@ci,arden-hills,mn,us] ient: Monday, May 02, 2005 2:00 PM ro: Julie Tembreull .ubject: Reference Check on Financial Concepts, Inc. Hi Julie: L My name is Schawn Johnson. I am the Assistant to the City Administrator for Arden Hills. We are in the process of evaluating potential health/insurance care brokers and Financial Concepts, Inc, listed you as a reference, I was wondering if I could take a few moments of your time to answer the following questions: _' What are the broker's areas of responsibilities in your City? [Julie Tembreull] Financial Concepts is our agent of record for ealth, dental, life and long term disability insurance, As such, they are responsible for reviewing the plan design and claims experience and recommending changes, negotiating insurance contract renewals with the vendors, resolving any claim issues between the City and the vendor and/or the employee and the vendor, conducting employee education meetings and surveying employees regarding benefits, etc, They also provide seminars and newsletters on human resources related topics, 2, In your opinion, what does the broker do well? We work with Jim Sarych and Shari Wodarck and they are very responsiVE to our inquiries, They return phone calls/e-mails promptly, they provide good information both to our Insurance Committee and to the employees, they look for ways to reduce our premiums and offer us plenty of options so that we feel we can really customize our plans to exactly the way we want. They are really helpful in all areas, 3. Are there any performance issues or problems that you have had with the broker? No 4, Does the broker do a good job educating and relating to your staff regarding employee benefit packages? Yes They do , good Job presenting the information, answering questions, and following up, They provide good informational handouts, and will bring in a representative of the vendor, if necessary, 5, Is your broker timely in returning phone calls and answering any questions or concerns that you may have? [Julie Tembreull) Yes, even if they are out of the office, they have someone else on staff that can answer your question They cOPI you on all e,mails so that you know that they are follOWing up on your question, 6, Does the broker have any service limitations or problems meeting your employees benefit needs? No 7, What type of letter grade would you give your broker? A _, Would you recommend this company to the City of Arden Hills? If not, please explain, [Julie Tembreuil] Yes, definitely We are very happy with Financial Concepts and the services they provide, Thank you again for your assistance in this matter. 5/3/2005 Zeference Check on Financial Concepts, lnc, Schawn p, Johnson City of Arden Hills Assistant to the City Administrator Phone Number: 651-634-5125 Fax Number: 651-B34-5137 [Julie Tembreull] Page 2 of: . We are in the process of implementing a Wellness Program and Financial Concepts has been very helpful in giving us options for wellness activities that cost little or no money, They have a wealth of information and are willing to take the extra time to get a Wellness Program implemented here, They also provided an Employee Survey that we could use to find out what kind of wellness activities our employees are interested in and then tabulated the results for us, They also provided great information/templates for the Implementation of HIPAA We really relied on them to help get all of our policies, etc, in place, . . 5/3/2005 Johnson, Schawn A,m' '-nt: To: Subject: Bacon, Dona Tuesday, May 03, 2005 7:53 AM Johnson, Schawn RE: Reference Checks for Employee Benefit Services Company See below, Good luck, Dona > -----Original Message----- > From: Johnson, Schawn > Sent: Monday, May 02, 2005 2:10 PM > To: Bacon, Dona > Subject: Reference Checks for Employee Benefit Services Company > > Hi Dona: > > The City of Arden Hills is in the process of evaluating > potential health/insurance care brokers and Financial > Concepts, Inc, listed you as a reference, I was wondering if > I could take a few moments of your time to answer the > following questions: > > 1, What are the broker's areas of responsibilities in your City? All insurances and wellness committee, COBRA help, legal guidance, > > 2, In your opinion, what does the broker do well? Good communication, Responsive, ., Are there any performance issues or problems that you > have had with the broker? None so far, > > 4, Does the broker do a good job educating and relating to > your staff regarding employee benefit packages? with me Yes, Could be a bit more progressive in their planning though, They seem to be getting busier. > > 5, Is your broker timely in returning phone calls and > answering any questions or concerns that you may have? is quite > > 6, Does the broker have any service limitations or problems > meeting your employees benefit needs? > > 7, What type of letter grade would you give your broker? > > 8, Would you recommend this company to the City of Arden have they > Hills? If not, please explain, Yes, same day, Very good here, Their attorney slow though, Not that I am aware of. B+ Yes, they are heads and tails above the rest I worked with, My expectation are very high and come close most of the time, > > Thank you again for your assistance in this matter. > > Schawn p, Johnson > City of Arden Hills > Assistant to the City Administrator .hone Number: 651-634-5125 .ax Number: 651-634,5137 > > > REQUEST FOR PROPOSAL RESPONSES - SECTION 1 . A, ,FINANCIAL CONCEPTS WORKPLACE SKRVICES In tod'!Y's raPidly changing world of employee benefits, your business needs a dedicated team of proftssionals to intepret and represent your intensts. Financial Concepts, Inc. provides expertise through consulting and brokering services to help meet your specific employee benefit and human nsources needs. Group & Individual Insurance Products Medical Dental Life Disability Voluntary Programs Long Term Care 'Property and Casualty Benefit Administration Services COBRA Administration Cafeteria/Section 125 Plans Section 105 ~ HRA Plans Health Savings Account (HSA) Pre-tax Parking/Section 132 Plans Pre-paid Legal Plans Human Resources Consulting HR Hotline Educational Seminars On Staff Legal Assistance Oltline Benefits Administration Recruitment & Retention Strategies Executive Benefits Deferred Compensation Phantom Stock Plans Benefit Carve Out Plans Buy/Sell Agreements Retirement Plan Services Registered Investment Advisory Services Retirement Plan Administration ERISA 404(c) Compliance Assistance Investment Policy Statements Employee Stock Option Plans Non Qualified Plans Retirement Plan Design Consulting . Employee Benefit Communications Group Benefit Education Retiretnent Plan & Investment Education Investment Allocation Modeling Program On-site workshops/ seminars Workstation kiosks Surveys Total Compensation & Benefit Statements Health and Wellness Programs Employee Assistance Programs (EAPs) Online Benefit Summaries New Hire Kits Investment Allocation Modeling Program . 2 ~ ~ ~. ~ i i = ~ = := =. = = = ; = = = = :;. ~ B) FIRM HISTORY AND EXPERIENCE Financial Concepts, Ine. 11100 Bren Road West Suite B Minnetonka, Minnesota 55343 Telephone: (952) 653-1300 Fax: (952) 653-1301 www.fci-benefits.com 1. Firm histOlY and background Financial Concepts, Ine. (FCI) is a multi-service employee benefits consulting firm founded in 1983. In 1996, FCI became a member of National Fin~ncial Partners (NFP). With hundreds of member firms nationwide, our alliance with NFP allows us to offer clients products and services unavailable to our competitors. Our clients can request and access legal resources, compliance guidance, proprietary products and improved purchasing power. FCI employs over thirty individuals includitig management, sales and marketing professionals and administrative staff. The majority of our employees are located in our Minnetonka, Minnesota office, We also have an office in Arizona, We maintain registered representative smtus in multiple states and heavily utilize our nationwide resources as a member of NFP to provide high quality service to our multi-state clients. FCI offers employee benefit services to over 250 organizations. \Y/e are proud of our client retention rate of ninety eighty percent - a number unheard of in this competitive market. In fact, our first client, the Better Business Bureau ofA-linn,sota remains a client today, Fel specializes in employer groups ranging in size of 10 and 1,000 employees. We find that the mid market industry realizes the highest level of value from our high touch client service. Budget and resource constraints common in mid market organizations require FeI to become an integral part of the organizations benefits and human resources functions. We partner with our clients' senior managers and human resources staff to offer high quality benefits, a wide array of additional services and strategic focus toward goals. 2. Financial references National Financial Partners (NFP) Elliot Holtz (201) 301-4060 Price Waterhouse Cooper Amy IGmnode (720) 931-7318 3. Distinctive Services Our finn provides organizations with custom designed benefit packages. We believe benefit programs should be based on the strategic objectives of the organization, We partner with our clients to understand their business market:, ernployce tnotivators, challenges and organizational culture to create benefit programs that help the organization tneet core business goals_ Tn many cases, we act as a virtual extension of the organization's human resource department reducing soft dollar costs for our clients. 3 Our goal is to work with our clients to identifY one, tluee and five year ohjectives and defme "success" for dIose tirncframes. . We attribute our success to (1) our unsurpassed dedication to client service, (2) a highly skilled team of benefit professionals, (3) firm independence, and (4) a vast array of products and services, 1) In addition to a mandatory 24-lwur return call policy required from all representatives and staff, FCI has instituted a proprietary benefits management system, 'Ibis system, custom designed to each client, establishes annual procedures to ensure proactive and efficient management of renewals including vendor selection and negotiation, product design alternatives, employee education and implementation. 2) FCl employs a highly skilled team of benefit professionals to provide day-to-day service to our clients. Whether it is problem resolution for claims or billing issues or the facilitation of strategic planning meetings, the FCl team is dedicated to the highest level of client service, In addition to our internal team of experts, we. have established cross-functional alliances with several key personnel in the benefits industry to bring our clients exceptional value. These professionals include HR Executives, Attorneys, Certified Public Accountants and Business Management/Planning Executives, FCI may call upon any of these closely held relationships to aide our clients in problem resolution. 3) As an independent firm, PCI has access to all uon-captive insurance companies licensed to do business in the state of Minnesota. 4) Please refer to the Section 1 - A, Workplace Services for a more complete listing of the vast array of products and services offered by PCL . Over the past few years, many employer groups have experienced annllill double-digit increases in health insurance premiums. The causes of these increasing trends spread far and wide and cannot be pinpointed to one overpowering source. 'Il1e cost of new and improved technology in the medical industry, the rising cost of medical malpractice suits, the aging population, government mandates, the cost associated with hringing new pharmaceuticals to market and patient utilization all play key roles in escalating insurance premiuins, As a result of d,ese increases, FCI has witnessed a unique eruption of choice in the group health and welfare insurance marketplace. At no other time in recent history has there been so many options available to employers and employees, Insurance companies are as aggressive as they have ever been before in pricing, new member acquisition and value added senrices. Most insurance companies are introducing new products and services including greatly expanded benefit design options, tiered drug copays, disease management programs, employee assistance and counseling programs, patient welhless resources, tiered networks and nurselines. In addition, legislative changes have added new opportunities for the medical insurance marketplace that benefit both the employer and the employee, including Health Reimbursement Arrangements (HRAs) , Health Savings Accounts (HSAs) and Deductible Reimbursement Plans (DRPs). As a standard practice, FCI in/Jestigates any and all new prvductJ, services, and legislation with insurance vendors as well as our benefit attorneys. Our cfientJ are continuously updated on new developments with regular conununication including etnails) semi-annual training seminars for HR professionals (see Section I - G, Workplace WelIness Seminar) and regularly scheduled mid year strategic planning . 4 . meetings with each client. Our unique benefit management cycle enables us to ensure that we've worked with each of our clients individually to evaluate the feasibility and timing of new products and services for their organization. 4. Municipality experience FCI maintains relationships with nine cities in the Minneapolis/St. Paul metropolitan area. Our first City client, the City of Little Canada, remains a valued client today, FCI considers mUlIiapalilie..- om of tis illdustry ,rpedalties as it rclates to employee benefit plans and human resources management. We make it a practice to understand the issues, challenges and changes affecting City govermnents in Minnesota and work with the appropriate City personnel to deal with the situation_ For example, as the new HIP AA policies and procedures loomed last year, FCI initiated and sponsored a FREE HIP AA training session for ,all municipalities and was presented by a leading HIP AA attorney, Darcy J-litesman, from I laynesHitesman, P.c. The training was held at one of FCl's city clients and FCI emailed invites to all City HR personnel on the League of Minnesota Cities email distribution list. Approximately 35 people attended the seminar representing cities from all over the metro area. 'lbe seminar evaluations indicated a 1000;', satisfaction level with the seminar topic, presentation material-and presentation content. FCI continues to grow with our municipality clients focusing on issues at the forefront of City govermnent including bndget issues, wellness programs and upcoming F ASB mlcsregarding funding and accounting practices for retirees, . The following is a current list of cities that FCI maintains full services relationships with: City of Brooklyn Park City of Fridley City of Inver Grove Heights City ofLittlc Canada City of Roseville City of Champlin City of Hopkins City of Lakeville City of Maplewood 5. FCI's association with providers FCl is an independent agent licensed with all major non-captive insurance carriers in Minnesota. If there is a new or existing product held by the group that FCl is not registered with that specific carrier, FCI will obtain licensing to service the product. 6. Commnnication responsibilities Acting as agent of record for benefit plans, FCl will request updated employee census information, plan designs and premium rates. FC! will provide ti,e City with timely information regarding renewals; market and industry updates and any benefit related legislative changes that may affect the City's benefit programs through our exclusive benefit management system. . At the onset of tile relationship with tbe City of Arden I-lills, FCl will immediately input the City's benefit plans into our benefit management system, FCI proven proprietary benefits management process helps anticipate cost increases as well as allows time to proactively implement cost contal1lment measutes, Through this process, FCI systematically analyzes quarterly claims information (if available) from vendors to identify problematic trends over the course of the year, In addition, we monitor market trends for groups with similar demographics and work rype. 5 This information is provided to your benefits staff with appropriate recommendations for immediate and future action items. Recommendations may include, but are not limited to, evaluating other vendors, funding arrangements and! or implementing plan design alternative. The graphie below summanzes the specitlc procedures and action items included in FCI's annual benefits management system. ~ Renewal! Effective Date ... ~;plementatioD '---- Review Enrollment! Communicati6R , \. Benefit Management Cycle . Benefit & Cal'Tier Selection First Quarter eports & Ana)ys' t Third Quarter eports & Allalysi Administrative! Compliance Audit Ongoing Key Support Seniccs -I '\, Markel Surveyl Renewal Process Mid-Yeal" Strategk PlaDning Meetin ... ~~-=.: ~ , FCI will establish a quarterly claims review process (if available) and a mid-year strategic planning meeting which will determine the action items and timetable for the UpCOlning months, As a part of the benefits management system, FCI generally works with you to set two to three strategic planning meetings to review information and prepare for the next benefit event. We consider benefits management a continuous process~ not just an annual renewal. 6 . . . . . I t. ~ c) QUALIFICATIONS 1. Service Philosophy FC]'s value proposition is providing consulting and brokerage services that result in cost effective benefit programs that meet the unique goals and objectives of the organization. We achieve our value proposition by leveraging our independence, a proprietary strategic benefit management system, innovative enlployee services and a comprehensive array of tools and resources to case the plan administration for the employer. 1) As an independent firm, FCl generates sufficient volume in the state of Minnesota to maintain preferred broker status with all the major insurance carriers. Our clients benefit from this status by receiving more timely information as well as,increased negotiating power. FC]'s negotiation skills have resulted in significant reductions for our clients' health insurance renewals, In addition, as a member of NFP, FCI has access to proprietary products not offered through other local employee benefit agencies, 2) FCI employs a proven proprietary benefits management process that helps anticIpate cost increases as well as allows time to proactively implement cost containment measures, Through tlus process, FCI systematically analyzes claims information from vendors to identify problematic trends over the course of the year, This information is provided to your benefits staff with appropriate recommendations for immediate and future action items. Recommendations may include, but arc not limited to, evaluating other vendors, funding arrangements and/or implementing plan design alternatives. 3) FCI advocates a very high level of employee interaction throughout the benefits management process. In most organizations, employees today arc oblivious to the dramatic cost increases affecting the health insurance industry. We believe that industry trends point toward increased employee responsibility for healthcare, We work with our clients to implement a strategic education and/or wellness campaign to help prepare employees for the future as well as keep them infomled and involved in immediate benefit plan changes. In addition; our extensive library of educational presentations is aimed at raising awareness of insurance trends, understanding plan design and cost shating changes and encouraging health management behaviors among employees. While the employee interaction may not immediately impact tile overall cost to the plan, it does help alleviate contention among employees when benefit changes (both cost and plan design) are the only option. 4) FCl strives to act as a virtual extension of your Human Resources staff by providing tools and resources that help ease benefit plan administration, maintain compliance with current and new laws, regulations and commwucations with participants. As an FCI client, you win have an opportunity to take advantage a "vide array of Human Resources support services. \X/ith out prominence in the industry, strategic benefit management process, employee involvemcnt~ and extensive hurnan resources support sernces, we believe FCl ranks highest m110ng its' competitors, Our clients benefit from FCl's thorough cost negotiations with insurance carriers and our ability to reduce the internal burden of sponsoring your benefit plans, 7 2. Conceptual program structure Upon engagement with the City of Arden Hills. your FCI account team will work with you to set the first strategic planning meeting, \YJe refer to this meeting as a "Benefits Audit" meeting which is conducted with the appropriate City personnel to gain a better understanding of the employee benefits programs, and more importantly the organization's dynamics, We would seek to understand the City's work culture, employee demographics, work conditions, perceived value of benefits and any challenges or issues that the City currently faces or expects to encounter in the near future as it relates to employee benefits. After FCl understands the group's unique goals, objectives and challenges, our staff will work with you to create a customized action plan and timetable, As a result of the Benefits Audit meeting, many 'l'unicipalities have approved an action plan to appoint a benefits committee that included representatives from all levels of the organization. This benefits committee may serve several functions including communication with other employees, understanding the diversities of your workforce, and acting as an advocate for plan changes which is sometimes better perceived from a fellow employee rather than management, 3, Technology Technology Resources Through our relationship with NFl', FCI provides the latest in web based HR support services to help meet your group needs including: . MyHRView provides HR professionals access to a comprehensive resource and reference center, containing employee benefits, HR/ employment, and personal financial planning infomlation that help answer questions and research topics related to human resources and benefits plan issues, MyHRView also explains and analyzes complicated federal laws and confusing acronyms - such as COBRA, ERISA, ADA, FLSA, FMLA, HIP AA and others. Includes a voluminous library of forms, checklists, model language, glossaries, calculators, organization policies, sample lerters and employee communications, covering a wide range of benefits and employment-related areas. Links to state and federal govenunent sites, hundreds of dowuloadable forms, including a complete sample Employee Handbook are also available. . Benchmark Reporting keeps your benefits program current and competitive and is vital to achieving your business strategies. A non-existent or flawed benchmarking process may lead to poor decisions and costly results. NFl' Benefits survey-based benchmarking report will help you detennine how your benefit plan compares to other organizations in your competitive marketplace, as well as control costs. Drawing upon data from a national survey, our advisors provide you benefits benchmarking information based on size, industry, and geographic locations. . Employee Benefit Surveys are designed to capture employees' perceptions and understanding of your organization's benefit package. This can be used to demonstrate to employees tllat their organization is looking out for their best interest, as well as to determinc adequacy of the current benefit package and if dollars are being spent "wisely". Confidential and anonymous, the survey can be administered through the Internet or on papet and re')Wres minimal time and effort from the HR and IT departments. Providing 8 . . . . . . solid research on employee attitudes, our advisors help you get the most out of your investment in people, programs and systems. j . Employee Benefits Newsletters were created especially for our clients. The newsletter provides articles and information that are pertinent to today's hottest HR and Benefits topics. The newsletter is distributed every two months via email and keeps you abreast of constantly changing and increasing laws and regulations and positions your organization to take advantage of opportunities in your marketplace. . Special Edition Newsletters are sent periodically via email and focus on a single topic such as new regulations, legislative decisions, or specific products and issues that may arise between Newsletters. . MyBenefitsView (MBV) is a benefits comhmnication service that helps employees understand and evaluate both their basic and optional benefits, learn about important plan features or changes, and appreciate the value of their total benefits package. Since MBV is an Internet -based application, there is no software to install or hardware to buy. It provides employees and their families 24/7 access to planning information and necessary forms to enroll in sponsored or voluntary benefits. It is a customized and branded website that incorporates the organization name and logo, and can also feature news and events outside of the benefits field. . SeminarslWorkshopslWebinars PCI offers senu atlliual client training workshops that cover hot topics in the benefits industry, These HR training seminars are offered at no cost to our clients and provide expert resources on complex legislative changes and industry news. In addition, FCI offers customized employee education workshops to help employees understand benefits and the current market conditions in the benefits industry, Communication Systems FCI utilizes state of the art technology to help service clients. Our primary software systems are Microsoft including: Microsoft Word, Microsoft Excel, Microsoft PowerPoint and Microsoft Outlook. Each ofnte City of Arden Hills Account Team members arc email enabled and are capable of servicing your account via technology - if that is your desired mode of communication, In addition, a number of the third party administrators offer onlinc account access and reporting systems. If that is identified as a priority in the strategic planning process, FCI will research the market to ensure adequate delivery of technology and reporting capabilities. 4, DRAFT Action plan/timetable The Sample Timeline below shows a draft timelinc for FCI to begin working with The City of Arden Hills, The timelines generally include strategic planning meetings, administrative meetings, committee meeting, and employee education and details the overall benefit plan implementation schedule. A more detailed timeline will be developed upon obtaining more infomlation on the the City of Arden llills benefit plans, 9 Action Item Date Responsibility Benefit Audit/Initial Strategy Meeting ASAP FCI w / the City Develop Benefit Committee ASAP City Educate committee: - Health insurance trends - Renewal/RFP process May, 2005 FCI - HRA/HSA Preliminary Cost Analysis of Options/Plan Designs - Medica , - Preferred One Summer, 2005 HealthPartners FCI - - BCBS Determine whether or not to go to market for health, dental, life, LID, STD for 1/1 September, 2005 FCI/City - Complete applications for submission by 10/1/05 Cost Analysis of Options/Plan Designs - Medica - Preferred One Late October/Early FCI/City November, 2005 - HealthPartners - BCBS Determine - Vendor - Plan design Early November Fel/City - Contribution levels for premium and HRA, if appropriate Employee Meetings Late November Fe! Post Implementation Meeting/Follow Up January FCI/City 10 . . . . . . 5. Detailed Services Strategic Planning FCI will provide The City of Arden Hills with benefit and financial consulting, recommendations and support that includes the following responsibilities: (a,) Examine current employee benefit plans. (h,) Review insurance plan design and claims experience. (e) Analyze competitive plan position considering plan design, employee choice, and both employer and employee costs, (d.) Review and recommend plan design and financial fimding alternatives. (e,) Assist in preparation of budget projections. (f.) Establish the City of Arden Hills with a renewal strategy encompassing all the components of a cost effective, high quality benefit plan for the upcoming year. (g,) Recommend relationships with FCI alliances to help achieve organizational goals and objectives (property and casualty insurance, legal, HR generalists, accounting professionals, ete) Renewal Service FCl will provide full vendor management responsibilities including: (a,) Vendor negotiation for renewals. (b.) Managing the proposal process to ensure competitive programs and pricing. (e) Securing rate guarantees and caps if available, (d,) Securing attractive fmancial alternatives. (e,) Vendor non-standard problem resolution, including assistance with irreconcilable claims and billing issues between the City of Arden Hills and the vendors, (f.) Recommend plan design alternatives to best manage costs and offer a competitive benefits package for employees. (g,) Educate the employees of the City of Arden Hills on their new benefit plans and costs as well as market ttends and wbat to prepare for in the future as it relates to benefits. Human Resources Support Services FCI has available full technical services for dle benefits plan, Much of the technical work will be inherent in dle development of the strategic plan mentioned above. The sttategic plan will include the important technical considerations for your organization including: 11 Ca.) Assist Human Resources staff on compliance related issues through training setninars, newsletters and correspondence. . (b,) Appraisal of industry, legislative, and regulatory developments and consultative recommendations as it relates to employee benefits. (c.) Provide consultation on employee relation issues as needed. (d.) Full access to FC!'s online hwnan resources library (MyHRVleW) of explanations and analysis oflaws, trends and developments in benefits and related areas, MyHRView $l,OOO/annually Included Semi-annual HR training seminars Varies Included Legal support $150-$275/hour Included Benefit plan benchmarking data $500 - $2,500/project Included . Benefit conunittce meetings N/A . Included Monthly newsletter to HR staff N/A Included c..oQ"QA~ Employee Services Ca.) FCI will work with the City of Arden Hills management to design and deliver an employee communications strategy that aligns with the strategic benefit initiatives, (b.) Conduct/review employee surveys; provide objective and subjective feedback to management and/ or benefits committee, jf applicable. (c.) Review effective communication methods to educate employees on their new benefits package as well as the strategic benefit objectives of The City of Arden Hills. . 12 Employee surveys $1,500-$2;000 with $500 for online set,up Included Assist with employee education $150/hour Included Support for Employee Wellness Initiatives $100/hour Included MyBenefitsView (MBV) is a benefits communication service that helps employees understand and evaluate both their basic and optional benefits, learn about important plan features or changes, and appreciate the value of their total benefits package. Since MBV is an Internet-based application, there is no software to install or hardware to buy. It provides employees and their families 24/7 access to planning infottrultion and necessary forms to enroll in sponsored or voluntary benefits. It is a customized and branded web site that incorporates the organization name and logo, and can also feature news and events outside of the benefits field. ~--- ------- ---- ----~-- --~ , OP1IO'-\L SE R\ ICES Additional Services Additional Services Additional Services MyBenefitsView (online $3.50/ employec/month plus set up costs $1,50/employee/month inc. set up employee resource) 6. Account Team The City of Arden Hills group benefit services account team will consist of the following represent"tives and staff: . Jim Sarych Senior Consultant Jim, as Vice President, is responsible for directing the marketing efforts and as well, as acts as a Senior Consultant for FCL Jim began his career in the insurance and benefit industry in 1989 with ]>rudential Financial Services. Jim joined FCI in 1991 and specializes in municipalities, unions, and manufacturing organizations. Jinl holds the Life Underwriter Training COlillCil Fellow (LUTCF) designation, is a member of the American Socicty of Chartered Firulncial Consultants and Chartered Life Underwriters, the l\1llmesota life and Health Insnrance Profession and a mcmber of NFPSI, a NASD member broker-dealer, Jim graduated from the College ofSt 1bomas in 1988. 13 Shari W odarck Senior Consultant Shari provides benefit plan consulting for FCL She has over 12 years of experience in the employee benefit., industry and has been with FCl for the past five years. Shari began her career at American Express Retirement Services, first managing employee education projects and departing as Manager, Client Marketing and Communications. Shari's portfolio includes employee education campaigns honored by the Profit Shatirlg Council of America for creativity and results, Shari holds a lVlinnesot>l Life and Health License, is a member of the National Association of Women Business Owners, a member of NFPSI, a NASD member broker-dealer and continues to be an active writer for the financial services industry as well as several publications on a volunteer basis. Shari graduated from the University of Minnesota in 1990 with a B.A. in Psychology with an empllilsis in Industrial Relations. Karyn Maki Account Manager Karyn provides Account Malllgement services for FCI in both the large and small group markets, working with the client's Medical Insurance, Dental Insurance, Group Term Life, Disability, and Flexible Spending Account plans. Karyn st.arted with FCI in 2002 after working in Human Resources for five years at a company in Burnsville, MN, first as a Trainer for a year and a half and then as a Benefits Administrator for three and a half years. Karyn graduated from the University of St. Thomas with a B.A. in Communications and Psychology. In addition to her Account Management responsibilities, Karyn conducts employee edncation workshops and assists with managing our vendor relationships. Diane Toner Client Scrvice Representative Diane manages FCl's benefit management cycle and ensures tinlely delivery of vendor renewals, fonns and application processing and oversees the overall workflow processes with FCI and the prodnct vcndors, Diane also provides support to the FCI Account Managers. Diane llils over 20 years experience in the insurance industry working the majority of that time with FCL Professional Partnerships In addition to our qualified team of FCI representatives, FCI maintains multiple professional relationships with expert resources to help scrvice our clicnts. These resources include: ERlSA Attorney Pension Benefit Attorney Human Resources Attorney Human Resources Generalist Consult>lnt Compensation Consultant Actuary/Underwriting Analyst Certified Public Accountant 14 e ei I I I . J J ~. J 1 - j o . . . ":';-J - __ ___I .. ',r- __.i .1 e e, -'~~' - ;. '",-.-,: . . '. -'- '. ~ . .c,_,' .- ;, , . ~ '.';', "",' '. ....-. . ", ',. - ~-- ':j'~~,:,;- ..< "; . ,,-,. ,:'!., ;;..;_ i.: .. _ ?f 0/31/2006." .")'1:<-1,_'.,..'.',.....<( '""';:"" '. -'._' __:._;._-"_;;.;.......:ri,~~....: = .; ;~,.:.-..;.,~__ ..-~~-:;:"- -~~~~~._~~...'" ,.;'...., '-",,' ,''-"-... "',':"'-" "':.' ~"::=_"':::"1 \--::- .-=-..=-..=-. 0-"'7" =,-.:::-..=-. .- - - --. '_~-=-.",_ --. ...o:----=-:.::::-..=_. 1- =- _ ,-1 ~I 1, ,-- - - -. ''::"'~ -=--- SEE REVERSE S~DE FOR OPENING INSTRUCTiONS Minnesota Department of Commerce Licensing Division 85 - 7th Place East, Suite 600 St. Paul, MN 55101-3165 _to? w~ -'" ~-' ot"-'J 1l\:.J..\~.lj~~fcZ~t~~ .... f ~ C:) ....._ .A <- c.._ I'" v,~ j.'USfA:' {ei Rev - 3' iJ 4 ri~:? .~f \ L- t.- .."<: __ ~ p -, . . . '- ~, ~ J:;,~'.~.~-."'~' ::: U - v ?~ .t~i\,~.-f~-ri;:::~~~~_n'_ ~~.;~ ';;;Xf.' 'A.'i~~ FINANCIAL CONCEPTS TWIN CITIES INC 11100 BREN ROAD WEST SUITE B MINNETONKA, MN 55343 r .....,:t::':-.::-...;;::. ~ :-:.:--:.-: ';1 :: 'Jilt; L fUlfi" lulu Hili fu ILu I f ,II. 1I111i1 tI Hu u In ii STATEMENT OF COMPLIANCE . Financial Concepts complies with all applicable state and federal laws and regulations. Each representative holds Minnesota State Lifejl Iealth Insurance license and abides by the continuing education requirements set forth by the State of Minnesota. In addition, Financial Concepts is a member ofNFP, a broker.dealer regulated by the National Association of Securities Dealers (NASD). Each securities licensed representative abides by the continuing education and regulatory requirements established by the NASD. Refer to Attachments for a copy of our Privacy Policy and HIP All. Business Associate Agreement. . . City of Arden Hills Health & Welfare Benefits Service Agreement Effective May 31st, 2005 Prepared by: Financial Concepts, Inc. 11100 Bren Road West, Suite B Minnetonka, MN, 55305 Direct. 952,653,1300 Toll Free. 800.693.1175 Fax. 952,653.1301 www.fei-benefits.com \ r.iu.lil,ial~QIil{~~ AN ~F.). fill..... ~An fmployu hodi' (WU/fiof C(fIUp" This document is to outline Financial Concepts, lnc. (FCI) setvices related to City of Arden Hills's employee benefit plans, including health and dental, . At the starting point of the City of Arden Hills and FCrs relationship, FCI will work with your organization to perform an audit of your current benefit programs. FCI will analyze the current benefits and meet with the appropriate leadership of your organization to understand the respective objectives and priorities. Based on these objectives and priorities, FCI will develop a benefits blueprint to meet the unique needs of your organization, The blueprint will be reviewed and refined as needed to ensure that the strategic benefit plan meets organizational needs. The resulting strategic plan will setve as the road map to design the ongoing management and administration of the benefit programs. FCI utilizes a Benefits Management Cycle approach of ensuring diligent plan management and completion of administrative responsibilities, L Strategic Plan FCI will provide City of Arden Hills with financial consulting and support including the following responsibilities: A. Examine current employee benefit plans, B. Review insurance plan design and claims experience, (if obtainable). C. Analyze competitive plan position considering plan design, employee choice, and both employer and employee costs. D, Review and recommend plan design and financial funding alternatives. . E. Assist in preparation of budget projections. F. Establish with City of Arden Hills a renewal strategy encompassing all the components of a cost effective, high quality benefit plan for the upcoming year, II. Compliance FCI has available full technical setvices for the benefits plan, Much of the technical work will be inherent in the development of the strategic plan mentioned above. The strategic plan will include the important technical considerations for your organization including: A. Assist Human Resources staff on compliance related issues through training seminars, newsletters and correspondence. B. Appraisal of industry, legislative, and regulatory developments and consultative recommendations as it relates to employee benefits. C. Provide consultation on employee relation issues as needed, D. Full access to FCrs online human resources library of explanations and analysis oflaws, trends and developments in benefits and related areas. . 2 . . . III. Renewal Service FCl will provide full vendor management responsibilities including: A. Vendor negotiation for renewals, B. Managing the proposal process to ensure competitive programs and pricing, C. Securing rate guarantees and caps if available. D, Securing attractive financial alternatives. E, Vendor non-standard problem resolution, including assistance with irreconcilable claims and billing issues between City of Arden Hills and the vendors. F. Recommend plan design alternatives to best manage costs and offer a competitive benefits package for employees. G, Educate the employees of City of Arden Hills on their new benefit plans and costs. IV, Employee Communication FC! will work with City of Arden Hills management to design and deliver an employee communications strategy that aligns with the strategic benefit initiatives. A Conduct! review employee surveys; provide objective and subjective feedback to management, if applicable, B. Review effective communication methods to educate employees on their new benefits package as well as the strategic benefit objectives of City of Arden Hills. C. Conduct employee education meetings related to the Health & Welfare benefits for City of Arden Hills, 3 It is our understanding that the objective is to provide a high level of benefits to City of Arden Hills and to keep these benefits within current and future budgets, . Assistance to be supplied to us by your personnel should include: . Confidential census information. . Full support in extracting claims data from City of Arden Hills. . Management input on City of Arden Hills strategic benefit objectives, both short and long term, . Communications strategy, input and support, . Direction on management issues related to the adoption of the various plans. The parties hereby acknowledge that the services described above which ate provided by Financial Concepts, Inc, under the letter agreement, "do not telate to an employee benefit plan" in the context of Section 514 of ERISA. Our compensation for all services is based on the amount received from the product vendors throughout the contract period. If Financial Concepts, Inc. is not the broker of record with the vendors, City of Arden Hills agrees that Financial Concepts, Inc. can bill for the balance of the compensation not yet received through the vendors for the remaining contract period. Either party may terminate this agreement with 30 days advance written notice delivered to the party with "Cause," Cause shall be defined as (i) the failure to perform any material term of this Agreement, or (il) material dishonesty in the performance of services under this Agreement. As a subsidiary of National Financial Partners Corp, ("NFP'), we are a member of a financial services network containing approximately 200 owned firms and approximately 250 affiliated finns. Finns within the NFP network engage in onc or more of its primary lines of business) which include corporate and executive . benefits and property and casualty insurance brokerage. Firms are compensated through fee and commissions for services provided to clients in each of these lines of business_ In addition to the standard commissions received for the services provided to you, we or our affiliates may earn additional compensation for our role in providing certain products and services to you under separate contracts with insurance companies and group benefits providers, Insurance companies and group benefits providers may pay us or our affiliates contingent compensation upon satisfaction of factors such as volume, persistency or profitability of the business placed ",oth such insurance company or group benefits provider, In addition, such product and service providers may pay us or our affiliates ftxed amounts related to the support ofNFP company conferences, conventions and other marketing efforts. If the foregoing is in accordance with your understanding, please sign and return to us the duplicate copy of this letter. Sincerely Yours, James Sarych Senior Consultant ACCEPTED BY: . DATE: 4 . . . Prepared by: SJ Dept: Admin Council Mtg, Date: 05/31/2005 Final Action Needed By: 05/31/2005 ~ ~HILLS City ot Arden HIlls Re uest for Council Action Agenda Item Motion to Approve the Peddlers, Solicitors, and Transient Merchants Ordinance #360-Revisinl! Section 340 of the City Code Budgeted Amount: NA Actual Amount: NA Funding Source: NA Council Action Request: Motion to Approve the Peddlers, Solicitors, and Transient Merchants Ordinance #360 Staff Recommendation: City Council Approval of Peddlers, Solicitors, and Transient Merchants Ordinance #360 ,~<I"i!;()ryc:ol11rnissi()nAction: ._ Commission u. __l'.@n.niI1g__ PTRC I Date I '" ""'" ---L. .1..... Action Not Applicable _ NotApplicable Not applicable -----~ , Supporting Documents (which are-attached to this Action Form): I2J Memo/Letter: D Resolution D Ordinance (No. D Engineering Recommendation: D Attorney Recommendation: I2J Other: . Copy of Peddlers, Solicitors, and Transient Merchants Ordinance #360 Financial Implications: Not Applicable- Administrator/Staff Comments: \\Earth\Admin\AssIstant City Admlnistralor\Requests for Council Action\2005\Peddlers, Solictors, and Transient Merchants Ordinance-May 31, 2005.doc . . ~ ~~HILLS MEMORANDUM DATE: Agenda Item 6.C. May 25, 2005 TO: Honorable Mayor and City Council Members Michelle Wolfe, City Administrator Schawn Johnson, Assistant to the City Administrator~ FROM: SUBJECT: Proposed Peddlers, Solicitors, and Transient Merchants Ordinance #360 -Revising Section 340 of the City Code Backe:round In 2004, City staff received a number of inquires from peddlers, solicitors, transient merchants, and political organizations regarding the process and procedures involved in the distribution of goods, services, and political literature to the residents of Arden Hills. After reviewing the City's current ordinance, it was determined by the City Attorney and staff that the creation of a new ordinance may be more advantageous to the City. The existing ordinance can be very difficult to interpret and some of the information that is being regulated is outdated or no longer applicable, The proposed ordinance more clearly defines the application process and the City's regulations regarding the sclling or distribution of goods, services, advertisement, and political literature, City staff is also attempting to minimize confusion by clearly defining what organizations are exempt from the permitting process. The following groups or organizations are considered exempt from Section 340,03 of the permitting process stated in this ordinance: I. Bona fide residents of the state selling farm and/or garden produce cultivated by themselves, provided that such sales can be conducted without creating traffic hazards; 2. Children age eighteen or younger, soliciting for school sponsored activities; 3. Garage sales, flea markets and estate sales; 4. Thc acts of merchants or their employees in delivering goods in the regular course of business; 5. Solicitations by organizations for philanthropic religious, political, charitable, non-profit or educational causes, Although these groups are considered exempt from the permitting process, the City will still require that these activities be registered on an application form, provided by the City, ten days prior to the event. Recommendation City staff is requesting City Council approval of the Peddlers, Solicitors, and Transient Merchant Ordinance #360, . Attaclnnents: . Proposed Peddlers, Solicitors, and Transient Merchants Ordinance #360 \\Earth\Admin\Assistant City Administrator\Memo's and Letters\2005\Peddlers, Solictors, and Transient Merchants 5-31.05,DOC . . . ~ ~H1LLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA ORDINANCE NO. 360 AN ORDINANCE REGULATING PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS IN ARDEN HlLLS- AMENDING CITY CODE CHAPTER 3 BY REVISING SECTION 340 The City Code of Arden Hills is amended by adding Chapter 340 to read as follows: 340.01 Purpose, This section is not intended to interfere with the legitimate business activities of peddlers, solicitors or transient merchants, These provisions are intended only to, as nearly as possible, regulate and control all those who would use their unique presence on property within the City to create nuisances, commit theft, or engage in other unlawful activities. 340.Q2 Definitions, For the purpose of this section, the terms used herein are defined as follows: A. "Peddler" means any person who goes from place to place; conveying or transporting goods, wares or merchandise; offering the goods, wares or merchandise for sale; making sales; and delivering goods, wares and merchandise, It does not include vendors of milk, bakery products or groceries who distribute their products to regular customers on established routes. B. "Solicitor" means any person who goes from place to place soliciting donations or taking orders for the sale of goods, wares or merchandise for future delivery or for services to be performed in the future. c. "Transient Merchant" means any person who engages in a temporary business, either in one locality, or in any traveling from place to place, selling goods, wares and merchandise; and who, for purpose of carrying on such temporary business, hires, leases, occupies or uses a building, shelter, vacant lot. vehicle, trailer. tent. boat, public room in a hotel, motel or 340.03 lodging house. apartments or any other place within the City . for the exhibition and sale of such wares. goods and merchandise. Application for Certificate of Registration. Except as provided in Section 340.07. peddlers. solicitors and transient merchants shall not conduct business in the City of Arden Hills without a certificate of registration. An application for a certificate of registration shall be submitted to the City Administrator or designee. on forms provided by the City. at least twenty one (21) days before the applicant desires to conduct business within the City. A completed application shall include the following: A. Sworn Statement. The sworn statement shall provide: 1. Applicant's full legal name. date of birth, and the social security number. 2. The permanent home address of the applicant. the address of the place of business or the firm or occupation which the applicant represents, and. in the case of transient merchants. the local address from which proposed sales will be made. . 3, A brief description of the nature of the business and the goods to be sold. 4. If employed. the name and address of the employer, 5. The length of time for which the right to do business is desired, 6. The place or location where the goods proposed to be sold are manufactured. stored, and the manner in which goods shall be delivered to the customer. 7. A photograph of the applicant taken within sixty (60) days immediately prior to the date of filing the application, The picture shall be approximately two inches by two inches showing the head and shoulders of the applicant in a clear and distinguishing manner, 8, . A statement as to whether or not the applicant has been convicted of any crime. misdemeanor. or 2 . . . 340,04 violation of any municipal ordinance, other than traffic violations and the nature of the offense and the punishment or penalty assessed therefore, 9. A list including the name, address, phone number and age (if under 18 years) of all persons working for or assisting in the described activity, 10. A transient merchant must also provide: (a) Proof of appropriate permission to operate on proposed site. (b) A copy of the form or individual's sales tax permit. The sales tax permit must be posted at the site, (c) Proof that the transient merchant sales are permitted within the zoning district where the business will be conducted. 11. A list of the last five (5) municipalities wherein the applicant has conducted business as a transient merchant. B, Fees. The application fee as adopted from time to time by City Council ordinance. The application fee is to cover the administrative costs of processing and investigating the application. Investigation and Issuance. A. Upon receipt of a completed application, it shall be referred to the Ramsey County Sheriff's Department for a background investigation of the applicant's business and moral character as deemed necessary for the protection of the public good. B. If the applicant has been convicted of a violation within the past five years from the date of the application for any Federal or State statutes or regulation, or of any local ordinance, which adversely reflects on the person's ability to conduct the business for which the certificate of registration is being sought in an honest and legal manner or that will not adversely affect the health, safety and welfare of the residents of the City, Such violations shall include but not be 3 340.05 limited to: burglary, theft, larceny, swindling, fraud, unlawful . business practices, and any form of actual or threatened physical harm against another person. C. Upon successful completion of the registration process and investigation, the City Administrator or designee shall issue to the applicant a certificate of registration, The certificate of registration is non-transferable, Regulations. The registrant and its employees shall comply with the following regulations: A. Siqns. No peddler, solicitor, or transient merchant, unless invited to do so by the property owner or tenant, shall enter the property of another for the purpose of conducting business as a peddler, solicitor, or transient merchant when the property is marked with a sign or placard at least three and three quarter (3-3/4) inches long and three and three quarter (3-3/4) inches wide with print of a least 48 points in size stating "Peddlers, Solicitors, and Transient Merchants Prohibited", or other comparable statements. No person. other than the property owner or tenant, shall remove, deface. or otherwise tamper with any sign. . B. Refusina to Leave. It shall be unlawful for any peddler, solicitor or transient merchant to enter upon premises owned, leased or rented by another and refuse to leave such premises after having been notified by such owner or occupant to leave. C. Misrepresentation. It shall be unlawful for any peddler, solicitor or transient merchant to make false or fraudulent statements concerning the quality of the goods or services which are being offered for sale. D, Hours of Operation, It shall be unlawful for any peddler or solicitor to conduct business within the City between 7:00 p,m, and 9:00 a,m, the following morning. except by specific appointment with and invitation from the perspective customer. E. False Information, It shall be unlawful for any reason to give any false or misleading information in connection with the application for a certificate of registration. . 4 . . . 340.06 340.07 F. Displav of Permit. Registrants are required to exhibit their permit at the request of a citizen. Duration of Certificate of Registration, Every certificate of registration shall be valid for the period of time stated thereon, but in no event shall any such certificate be issued for a period of time in excess of thirty (30) days. Exempt Organizations. A. Exempt List. The provisions of Section 340,03 shall not apply to the following organizations: 1. Bona fide residents of the stafe selling farm and/or garden produce cultivated by themselves, provided that such sales can be conducted without creating traffic hazards. 2. Children age eighteen or younger, soliciting for school sponsored activities. 3. Garage sales, flea market and estate sales. 4, The acts of merchants or their employees in delivering goods in the regular course of business. 5. Solicitations by organizations for philanthropic religious, political, charitable, non-profit or educational causes. B. Application for Exemption, An application for exemption shall be submitted to the City Administrator or designee on forms provided by the City at least ten (10) days before the applicant desires to conduct business within the City, A completed application shall include the following information: 1. Name and purpose of the cause for which the exemption is sought: 2. Name of the individual in the organization responsible for the solicitations; 5 3. Names and addresses of the individuals who will actually be doing the solicitation; 4. Period during which solicitation is to be carried on: and 5. Certificate of non-profit status, if applicable, from the state where organized. C. Political Orqanizations. Political organizations that request permission to canvass in the City are required to complete a legal affidavit and file it with the City Administrator or designee, 340.08 Revocation. Certificates of registration may be revoked by the City Administrator for a violation of any provision of this section. The decision of the City Administrator shall be final. Adontion Date: Adopted by the City Council ofthe City of Arden Hills The 31 st Day of May, 2005, Beverly Aplikowski, Mayor ATTEST: Michelle A. Wolfe, City Administrator Publication Date: Published on the _ day of ,2005 \ \Earlh\Admin\Council\Ordinances\Ordinonce 360 - Peddlers.doc 6 . . . ~ ...-A~HlLLS City ot Arden Hills uest for Council Action Re Prepared by: MW Dept.: Admin Council Mtg. Date: 5/31/2005 Final Action Needed By: 5/31/2005 Agenda Item II Resolution ReQardinQ Consolidated Dispatch Budgeted Amount: $0,00 Actual Amount: $0.00 Funding Source: N/A Council Action Request: Approve Resoltuion 05-38 Regarding The Consolidated 911 Dispatch Services n Ramsey County. Staff Recommendation: Approve the resolution, Advisory Commission Action: Commission ,."f'I<ln~i~g PTRC Date Action NotAppli<:i3tlIEl.., ....... ....... ... ., _'______ . _f\lot AppliC<l~~_____j ., . Not applicable . . Supporting Documents (which are attached to this Action Form): [8J Memo/Letter: Memo from City Administrator Wolfe dated May 25, 2005 with related attachments, o Resolution (No, ) o Ordinance (No. ) o Engineering Recommendation: o Attorney Recommendation: o Other: ' Financial Implications: Analysis of potential financial implications are still undelWay, Our participation in the proposed consolidated dispatch center would decrease the City's costs over an eight-year implementation period, until ultimately the County would pay the full costs associated with operating the center. However, those costs would be transferred to the County and Arden Hills residents could end up paying an overall higher amount for dispatch services, Administrator/Staff Comments: A consolidated dispatch center offers many potential benefits including operating efficiencies and better staffing for large emergencies, Analysis of the County's proposal continues, but at this time it appears that we should be concerned about the financing plan and potentially also the governance of the center. Until more is known I would recommend our support be conditional on working through those items, . Page 1 of 1 . . . ~ ~~HILLS MEMORANDUM DATE: AGENDA ITEM 6D May 25, 2005 TO: Mayor and City Council FROM: Michellc Wolfe, City Administrator ~ SUBJECT: Consolidated Dispatch Center BACKGROUND Over the past few weeks information has been distributed regarding the consolidated dispatch center. The Council was able to discuss the status of this project at the May 16 work session, At that time, the Council indicated interest in considering a resolution similar to one adopted recently by the City of Falcon Heights. Since that time, I received copies of resolutions from the cities of Roseville and Vadnais Heights (attached). I have also attached a sample resolution that was prepared by Ramsey County, The general concern is that suburban taxpayers will be paying a larger share for dispatching services under the proposal approved by the County Board, Ramsey County is taking on the costs for operating the dispatch center over an eight-year time frame. The taxpayers will still be paying for these services, but will be paying through County taxes instead of City taxes, Many believe that a disproportionate share will be paid by suburban taxpayers vs, City of St. Paul taxpayers. The primary rationale for this belief is that the County proposcs that the costs for the consolidatcd ccntcr would be paid from general county taxes, which are based on property value, This is different than how most suburbs currently pay for dispatch services, which is based on calls/usage. Thc way the proposal was explained at a recent mecting with the County Administrator, and as I understand the materials that were presented to the County Board, every city brings to the table what they are currently paying. That amount is then decreased over an eight-year period until the County takes over the costs completely, I am attaching a draft resolution for consideration, It is modeled after the resolution recently adopted by the City of Falcon Heights, A copy of the Ramsey County Resolution adopting the financing plan and governance for a consociatcd center is attachcd for your information, The suburban city managers will be meeting on Friday afternoon to discuss this topic further, so I will have additional information for you on Tuesday evening. Topics to be discussed include the following: Consolidated Dispatch Center Page 2 of2 May 5, 2005 1, Describe the County's recent Resolution regarding consolidated dispatching and discuss its potential impacts, pro and con, on our residents and our cities. 2. Discuss the economic and political feasibility of alternatives to the County's approach toward consolidated dispatching, including but not limited to: a. Two county-funded dispatch centers, suburban and urban, with County property taxes allocated to each center based on the respecti ve amount of property taxes paid by residents of each city participating in each center; b. White Bear, Maplewood, or some other established dispatching centers, even a distant one, handling part or all of our suburban emergency call load; c. One county dispatch center where funding is based on a 50-50 weighting of each city's call load and county property taxes paid. 3, Decide as a group on action steps, if any, and make assignments, RECOMMENDED ACTION Approve Resolution 05-38 Regarding the Consolidated 911 Dispatch Services in Ramsey County. Attachmcnts MW nFarth'\Admin\City Administrator',800 MHz-Consolidated DispatchW5-25-05 Memo to Council RE consolidated dispatch doc . . . . . . ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 05-38 A RESOLUTION REGARDING CONSOLIDATED 911 DISPATCH SERVICES IN RAMSEY COUNTY WHEREAS, the City of Arden Hills supports consolidated 911 dispatch services in Ramsey County; and WHEREAS, the City wishes to appoint Michelle Wolfe, City Administrator, to represent the City in negotiations with Ramsey County regarding consolidated 911 dispatch services; and WHEREAS, the City of Arden Hills' support of consolidated 911 dispatch is conditional upon the Ramsey County Board of Commissioners reconsidering the cost allocation formula, and utilizing a formula that takes into account both tax base and usage of911 dispatching, rather than relying strictly upon a tax base formula; and WHEREAS, the cost allocation formula should fairly reflect the cost of providing effective and efficient dispatch services to Arden Hills' residents and business owners. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA: 1. The City of Arden Hills will support consolidated 911 dispatch service, and participate in negotiations for this service, with the understanding that the Ramsey County Board of Commissioners will reevaluate the cost allocation formula for a consolidated dispatch center that takes into account both tax base and usage of 911 dispatching. 2. Any final agreements respecting dispatching services will come to the City Council for review and approvaL 3, City Administrator Michelle Wolfe is hereby appointed to represent the City in negotiations with Ramsey County regarding the consolidation of dispatch services. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS . 31ST DAY OF MAY, 2005. Beverly Aplikowski, Mayor ATTEST: Michelle A. Wolfe, City Administrator \\Earth\Admin\Council\ResolutionsUOO5\05-38, Approving the Ccmsoiidated 911 Dispatch in Ramsey Cty.doc . . . . . RESOLUTION OF THE ROSEVILLE CITY COUNCIL REGARDING CONSOLIDATED 911 DISPATCH IN RAMSEY COUNTY WHEREAS, the City of Roseville supports the concept of consolidated 911 dispatch in Ramsey County; and WHEREAS, the City wishes to appoint Neal Beets, Roseville City Manager, to represent the City in negotiations with Ramsey County Manager David Twa regarding consolidated 911 dispatch services; and WHEREAS, the City of Roseville's support of consolidated 911 dispatch is conditioned upon the County Board adopting a financing and cost allocation formula that fairly reflects the cost of providing effective and efficient dispatching services for Roseville residents; and WHEREAS, it is disappointing and frustrating that persons representing SI. Paul appear to be using the consolidated dispatching initiative as an opportunity to shift unfairly the burden of paying for SI. Paul dispatching services from SI. Paul property owners to Roseville and other suburban property owners; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROSEVILLE, MINNESOTA: 1. Designating City Manager Neal Beets as the City's negotiator with Ramsey County Manager David Twa. 2. Supporting consolidated 911 dispatch if it is based on a fair financing structure for Roseville residents and business owners. 3, That any final agreements respecting dispatching service will come to the City Council for review and approval. ADOPTED by the Roseville City Council on May 9, 2005. ATTEST: :71;Af ;&d;b Neal Beets, City Manager/Clerk ] ]6284 RESOLUTION NO REGARDING CONSOLIDATED DISPATCH CENTER IN RAMSEY COUNTY . WHEREAS, the City of Vadnais Heights supports a Consolidated Dispatch Center in Ramsey County, as it believes overall it will provide the opportunity of better service for the taxpayers of Ramsey County and will benefit the County taxpayers on the whole from economies of scale; and WHEREAS, the City wishes to appoint Gerald Urban, its City Administrator, to represent the City in negotiations with Ramsey County regarding the Consolidated Dispatch Center and services; and WHEREAS, the City feels the representation on the Planning and Policy Board should reflect the population in general as close as possible and include the elected County Sheriff; and WHEREAS, the City of Vadnais Heights' support of the Consolidated Dispatch Center is conditional upon the County Board adopting a cost allocation formula utilizing both tax base and usage of 911 dispatching; NOW, THEREFORE, be it resolved by the City Council of the City of Vadnais Heights, Minnesota, that the City of Vadnais Heights will support the Ramsey County Consolidated Dispatch Center and participate in negotiations for this service, with the following conditions: I. The Planning and Policy Committee be made up as follows: . · The Ramsey County Sheriff · One Ramsey County Commissioner from Saint Paul · One Ramsey County Commissioner from Suburban Ramsey County · Mayor of Saint Paul and three Councilmembers · Elected Official from White Bear Lake · Elected Official from Maplewood · Two Elected Officials from Suburban Communities who currently purchase dispatch services from Ramsey County. 2. That 50% of dispatch services be funded from General Taxes in Ramsey County and 50% of cost be paid based on calls for service. 3. That the City of Vadnais Heights' negotiator, Gerald Urban, will have authority to adjust the requirements in conditions one and two ifhe deems reasonable. ADOPTED this _ day of May, 2005. Gerald], Urban, City Administrator Attest: . Susan L Banovetz, Mayor I \heights\administration ICounciJ Meetings\2005\regular council mtgs\05 J 705lcommunicQlions Center Resolution.doc . . . SAMPLE RESOLUTION WHEREAS, On hme 22, 2004, the Ramsey County Board of Commissioners authorized the County Manager to proceed with the design and constmction of a Countywide subsystem backbone to the Metropolitan Radio Board's Public Safety Communication System (PSCS)/800 MHz Interoperable Communication System; and WHEREAS, On June 22, 2004, the Ramsey County Board of Commissioners authorized the County Manager to develop a preliminary design of a Ramsey County PSCS/800 MHz PSAP/Dispatch Center that would be sized to allow for potential future countywide dispatching; and WHEREAS, on June 22, 2004, the Ramsey County Board of Commissioners authorized the County Manager to begin negotiations with all of the municipalities in Ramsey County regarding dispatching services throughout the County; and WHEREAS, Tbe Ramsey County Board of Commissioners has taken a position in support of exploring consolidation of dispatching services because Commissioners believe that it provides several advantages to all of the jurisdictions in the County; and WHEREAS, On April 26, 2005, the Ramsey County Board of Commissioners approved a financing option that over an eight-year period clocks down contributions for operating costs by those cities operating PSAP/Dispatch Centers that choose to join the consolidated Dispatch Center on the following schedule. This schedule assumes a start-up date of January 1,2006. If operations start at a later date, year I is twelve months from start-up, and each year thereafter will refer to the next twelve-month period. Year 1 (2006) 0% (Base Year) Year 2 (2007) 10% Year 3 (2008) 10% Year 4 (2009) 15% Year 5 (2010) 15% Year 6 (201 I) 15% Year 7 (2012) 15% Year 8 (2013) 20% City Responsibility 100% 90% 80% 65% 50% 35% 20% 0% County Responsibility 0% 10% 20% 35% 50% 65% 80% 100% and WHEREAS, The Ramsey County Board of Commissioners approves payment by Ramsey County of the costs for capital cquipment, connections and dispatch center facility constmction and site developmcnt costs for cities operating independent PSAP/Dispatch Centers that choose to join the consolidated Dispatch Center; and WHEREAS, The Ramsey County Board of Commissioners approves the formation of a Dispatch Policy Committee to provide oversight and monitoring of consolidated dispatch services that includes elected official representatives from those PSAP/Dispatch Centers that join the consolidated Dispatch Center with a membership for the first 7 years. If all four PSAP/Dispatch Centers join, the composition of the Dispatch Policy Committee will be: . I Ramsey County Sheriff . I Saint Paul Mayor . 4 Saint Paul City Councilmembers . I Maplewood Mayor or City Councilmember . 1 White Bear Lake Mayor of City Councilmember · 2 Suburban elected representatives from cities that contract for dispatching services only The number of representatives from the Saint Paul City Council will be reduced by one if either Maplewood or White Bear Lake do not join the consolidated Dispatch Center of by two ifboth Maplewood and White Bear Lake do not join the consolidated Dispatch Center. The Saint Paul Mayor will chair the Dispatch Policy Committee for the first two years; thereafter the Chair will rotate; Now, Therefore, Be It RESOLVED, The, City Council is interested in participating in the Ramsey County Consolidated Dispatch Center; and Be It Further RESOLVED, The represent the City of City Council authorizes in formal negotiations with Ramsey County, to . . . Resolution . Board of Ramsey County Commissioners Presented By Attention: CommissiQJLer McDonough Date April 26J~~__, 2005 No, 2005-169 Connie Catlin, County Manager's Office Scott Williams, County Manager's Office Page 1 of5 Paul Kirkwold, project Manager Bob Fletcher, Sheriff Budqetinq & Accountinq WHEREAS, On June 22, 2004, the Ramsey County Board of Commissioners authorized the County Manager to proceed with the design and construction of the County subsystem backbone of a countywide Public Safety Communication System (PSPS)/800 MHz Interoperable Communication system as a subsystem to the Metropolitan Radio board's public safety communication system; and WHEREAS, On June 22, 2004, the Ramsey County Board authorized the County Manager to develop a preliminary design of a Ramsey County PSCS/800 MHz PSAP/Dispatch Center that would be sized to allow for potential future countywide dispatching for consideration by the County Board and the Policy Planning Committee; and . WHEREAS, On June 22, 2004, the Ramsey County Board authorized the County Manager to begin negotiations with the City of Saint Paul for a combined PSCS/800 MHz Dispatch Center, and with the Cities of Maplewood and White Bear Lake to locate their independent PSAP/Dispatch Centers within the countywide dispatch center, and to negotiate with all communities within Ramsey County, and to update the County Board and Policy Planning Committee on progress and recommendations; and WHEREAS, In order to meet project time lines, decisions are needed regarding which entities will be part of a consolidated Dispatch Center; and WHEREAS, County Board policy decisions are needed on the financial and governance positions the County will include in agreements with those cities currently operating independent Dispatch Centers that wish to join a combined countywide Dispatch Center; and RAMSEY COUNTY BOARD OF COMMISSIONERS YEA NAY OTHER T.ennett Tarter Jim McDonough Rafael Ortega Victoria Reinhardt Janice Rettman lan \Vicssner Victoria A. Reinhardt, Chair (Continued) By Bonnie C. Jackclcn Chief Clerk, County Board Resolution Board of . Ramsey County Commissioners Commissioner McDonoug~,_ Date April 26. 2005 No, 2005-IJ1~'L_ Connie Catlin, County Manager's Office Scott Williams, County Manager's Office Page20f5 Paul Kirkwold, Project Manager Bob Fletcher, Sheriff Budgeting & Accounting Presented By Attention: WHEREAS, The Ramsey County Board has taken a position in support of exploring consolidation because Commissioners believe that it provides several advantages to all of the jurisdictions involved; and WHEREAS, In response to the County Board's position that one consolidated countywide Dispatch Center could provide a better long-lerm service strategy for the whole County, Commissioners and the County Manager have been meeting with the cities of Saint Paul, Maplewood and White Bear lake to explore their interest in joining the County in a consolidated countywide Dispatch Center; and WHEREAS, During these discussions, financial and governance issues have been explored; and . WHEREAS, The City of Maplewood voted on April 11 , 2005 to authorize staff to begin negotiating an agreement with the County for provision of 911 dispatch services for Maplewood; and WHEREAS, Consolidation discussions have led to the suggestion that the County gradually take responsibility for funding dispatch operations and that governance of a consolidated Dispatch Center is a concern as dispatch operations will affect the various jurisdictions' public safety; Now, Therefore, Be It RESOLVED, The Ramsey County Board of Commissioners approves a financing option that over an eight-year period clocks down contributions for operating costs by those cities operating PSAP/Dispatch Centers that choose to join the consolidated Dispatch Center on the following schedule. This schedule assumes a start-up date of January 1,2006, If operations start at a later date, year 1 is twelve months from start- up, and each year thereafter will refer to the next twelve-month period, RAMSEY COUNTY BOARD OF COMMISSIONERS YEA NAY OTHER Tony Bennett Toni Carter Jim McDonough Rafael Ortega Victoria Reinhardt Janice Renman Jan Wiessner Victoria A. Reinhardt, Chair (Continued) . BL Bonnie C. JackeJen Chief Clerk ~ County Board . Resolution Board of Ramsey County Commissioners Commissioner McDonouqh Date April 26. 2005 No. 2005-169 Connie Catlin, County Manager's Office Scott Williams, County Manager's Office Page 3 of 5 Paul Kirkwold, project Manager Bob_Fletcher, Sheriff Budqetinq & Accountinq Presented By Attention: Year 1 (2006) 0% (Base Year) Year 2(2007) 10% Year 3 (2008) 10% Year4 (2009) 15% Year 5 (2010) 15% Year6 (2011) 15% Year 7 (2012)15% Year 8 (2013) 20% . and Be It Further City Responsibility 100% 90% 80% 65% 50% 35% 20% o County Responsibility o 10% 20% 35% 50% 65% 80% 100% RESOLVED, The Ramsey County Board of Commissioners approves payment by Ramsey County of the costs for capital equipment, connections and dispatch center facility construction and site development costs for cities operating independent PSAP/Dispatch Centers that choose to join the consolidated Dispatch Center; and Be It Further RESOLVED, The Ramsey County Board of Commissioners approves the formation of a Dispatch Policy Committee to provide oversight and monitoring of consolidated dispatch services that includes elected official representatives from those PSAPlDispatch Centers that join the consolidated Dispatch Center with a membership for the first 7 years that includes: lLAtvlSfXCQlm:I:Y BOARD OF COMM1SSIONERS YEA NAY OTHER T.ennett T rter Jim McDonough Rafael Ortega Victoria Relnhardt Janlce Retnnan Jan Wiessner Victoria A. Reinhardt, Chair (Continued) By Bonnie C JackeJen Chief Clerk - County Board Resolution Board of . Ramsey County Commissioners Presented By Attention: Commissioner McDonough Date April 26. 200S No, 2JLQ.5,-169 Connie Catlin, County Manager's Office Scott Williams, County Manager's Office Page 4 of 5 Paul Kirkwold, Project Manager Bob Fletcher, Sheriff Budqetinq & Accountinq The Dispatch Policy Committee will be comprised of representatives from those PSAP/Dispatch Centers that join the consolidated Dispatch Center, If all four PSAP/Dispatch Centers join, the composition of the Dispatch Policy Committee will be: . 1 Ramsey County Sheriff 1 Saint Paul Mayor 4 Saint Paul City Council members 1 Maplewood Mayor or City Councilmember 1 White Bear Lake Mayor or City Council member 2 Suburban elected representatives from cities that contract for dispatching services only; . . . . . . The number of representatives from the Saint Paul City Council will be reduced by one if either Maplewood or White Bear Lake do not join the consolidated Dispatch Center or by two if both Maplewood and White Bear Lake do not join the consolidated Dispatch Center. The Saint Paul Mayor will chair the Dispatch Policy Committee for the first two years; thereafter the Chair will rotate. and Be It Further RESOLVED, The Ramsey County Board of Commissioners authorizes the County Manager to represent the County Board in formal negotiations with the cities operating independent PSAP/Dispatch Centers; and Be It Further RAMSEY COUNTY BOARD OF COMMISSIONERS YEA NAY OTHER Tony Bennett Toni Carter Jim McDonough Rafael Ortega V ictoria Reinhardt Janice Rettman Jan Wiessner Victoria A. Reinhardt, Chair . By (Continued) Bonnie C Jackelen Chief Clerk ~ County Board . Resolution Board of Ramsey County Commissioners Commissioner McDonouqh Date April 26,- 2005 No. 2005-169 Connie Catlin, County Manager's Office Scott Williams, County Manager's Office Page50f5 Paul Kirkwold, Project Manager Bob Fletcher, Sheriff Budqetinq & Accountinq RESOLVED, The Ramsey County Board of Commissioners requests that Maplewood, North Saint Paul, Saint Paul and White Bear lake each submit a formal resolution to Ramsey County by May 17, 2005, if they are interested in joining the consolidated Dispatch Center; and Be It Further Presented By Attention: RESOLVED, The Ramsey County Board of Commissioners authorizes the County Manager to begin negotiations with all other municipalities in Ramsey County for a similar financing option if at least one of the cities operating independent PSAP Dispatch Centers chooses to join the consolidated Dispatch Center; and Be It Further . RESOLVED, Any contractsand/or agreements will return to the County Board for final approval. T~nnet1 To.rter Jim McDonough Rafael Ortega Victoria Reinhardt Janice Rettman lan \Vicssner RAMSEY COUNTY BOARD OF COMMI,<;~SIONERS YEA NA Y X X X X X OIlIER Victoria A. Rein dt, Chair By X X . ~ ~HILLS City of Arden Hills Request for Council Action I Prepared by: Murtuza Siddiqui Dept: Finance Council Mtg. Date: 5/31/05 Final Action Needed By: 5/31/05 Agenda Item II TechnolollV Upllrade Budgeted Amount: $0.00 Actual Amount: $5.915.00 Funding Source: Cable Fund Council Action Request: 1. Purchase a Digital Video Deck in the amount of $3,200, 2. Purchase nine replacement video monitors in the Council Chambers in the amount of $2,715, 3, Amend the 2005 Cable Fund Budget in the amount of $5,915. Staff Recommendation: Staff recommends that the Council approve the following: 1, Purchase a Digital Video Deck in the amount of $3,200. 2, Purchase nine replacement video monitors in the Council Chambers in the amount of $2,715. 3. Amend the 2005 Cable Fund Budget in the amount of $5,915. Advisory Commission Action: Commission Date Action e~--~~. Planning. PTRC N()tA(Jplicable Not Applicable N()t;3Jlf>licabl~_._ Supporting Documents (which are attached to this Action Form): [gJ Memo/Letter: Memo from dated may 23, 2005 D Resolution (No. D Ordinance (No.363) D Engineering Recommendation: D Attorney Recommendation: DOther: Financial Implications: Funds to replace the proposed improvements were not included in the 2005 Budget. Approval to implement the above referenced improvements would require a budget amendment to the Cable Budget in the amount of $5,915, This fund currently has a balance of about $275,000, Administrator/Staff Comments: . Page 1 of 1 \ ~ /],\~HILLS MEMORANDUM . DATE: May 23,2005 Agenda Item: 6.E TO: Honorable Mayor and City Council FROM: Murtuza Siddiqui, Finance Director/Treasurer '>v)S SUBJECT: City Council Chambers - Technology Upgrades BACKGROUND: The Council Chambers is in need ofupdatinglenhancing some of the audio visual equipment. The reasons for the replacement are due to failure of the existing equipment or to enhance the quality of video and audio transmission over the cable. DISCUSSION: There are two items that need to be addressed and they are as follows: . 1, Replacement of a Video Playback unit with a digital Video Deck unit. 2, Replace the existing video display units located on the dias and in the staff seating area, The first item for consideration is the Video Deck. The quality ofthe video transmission is not very clear and is in need of improvement. The City has received numerous complaints from residents about the quality of video and audio transmission. Our Cable Coordinator has recommended that in order to improve both the video and audio quality, the City should consider replacing the existing analog Video Deck with a digital Video Deck. (Please see the attached Ken Gammel's memo for further details), The price for these types of units vary anywhere from $1,700 to $13,000, depending upon the features. The unit recommended is a Sony DSR-25 DVCAM Video Deck that will adequately serve the City's needs, The estimated price with tapes, cable, shipping, and taxes add up to about $3,200, Although the City has two Video Decks, replacement of one would be sufficient as the other analog Deck can be used for duplication purposes. The second item for consideration is the replacement of the existing video display units. Currently, the Council Chamber has ten display units. In 2003, eight of the ten monitors had sustained damage. This damage is in the form of nwnerous horizontal lines on the display, Experts have pointed the problem to a power surge that had occurred back in 2003. The damage . is getting worse and is getting difficult to read and see the contents on the screen, The cost to . . . Memo Council Chambers- Technology Upgrades 2 purchase locally is $285 per unit Staff recommends that we replace all units that are installed on the dias as well as the staff seating areas. These add up to nine units at a total cost of $2,565. Prior to installing new monitors, surge protectors will be installed in order prevent similar damage in the future, The cost of surge protectors will be $150, The total cost of all proposed improvements adds up to $5,915. No funds were specifically budgeted for this purpose in the 2005 Budget These improvements are eligible to be funded out of the Cable Fund. This fund currently has a fund balance of about $275,000. RECOMMENDED ACTION: Staff recommends that the Council approve the following: 1. Purchase of Video Deck in the amount of$3,200, 2. Purchase nine monitors, including surge protectors in the amount of$2,715. 3. Amend the 2005 Cable budget by $5,915. ~ ~HILLS City ot Arden Hills uest for Council Action Prepared by: Murtuza Siddiqui Dept: Finance Council Mtg. Date: 5/31/2005 Final Action Needed By: 5/31/2005 Re 'W).s Agenda Item LED Traffic Liahts Budgeted Amount: $0.00 Actual Amount: $5.400.00 Funding Source: General Fund Council Action Request: 1. Authorize staff to replace the existing traffic signal lamps with energy efficient LED Lamps at a gross cost of $10,400; $5,400 after rebate. 2, Amend the 2005 General Fund in the amount of $5,400 (net of rebate) Staff Recommendation: Staff recommends that the Council approve the following: 1, Authorize staff to replace the existing traffic signal lamps with energy efficient LED Lamps at a gross cost of $10,400; $5,400 after rebate. 2, Amend the 2005 General Fund in the amount of $5,400 (net of rebate), Advisory Commission Action: Commission Date Action . Planning PTRC "-"......."...."....- Not Applicable . NoLApplicable Not applicable Supporting Documents (which are attached to this Action Form): [8] Memo/Letter: o Resolution (No. ) o Ordinance (No, ) o Engineering Recommendation: o Attorney Recommendation: o Other: Financial Implications: Funds to replace the traffic light lamps were not included in the 2005 Budget. Approval to replace the lamps would require a budget amendment in the amount of $5,400 (net of rebale), Administrator/Staff Comments: . Page 1 of 1 . . . ~ ~ILLS MEMORANDUM DATE: May 23, 2005 Agenda Item: 6.F TO: Honorable Mayor and City Council FROM: Murtuza Siddiqui, Finance Director/Treasurer "W\5 Tom Moore, Operations and Maintenance Director SUBJECT: LED Traffic Lights BACKGROUND: In January, 2005, staff presented a memo to the Council regarding the replacement of the existing traffic signal lamps with energy efficient LED lamps. Information received at that time was very preliminary and it required additional research. DISCUSSION: On April 29, 2005, Murtuza Siddiqui and Tom Moore met with the Ramsey County Traffic Signal Operations staff to discuss the cost benefit of replacing the existing traffic signal lamps with the energy efficient lamps. The existing traffic signal lamps have an approximate life span of I y, years. They draw approximately ISO watts of energy, The LED lamps have an approximate life span of 15 years. The LED lamps draw approximately 12 watts of energy, The number of LED lamps that are proposed to be replaced total 140, These include the reds, greens, arrows, and pedestrians' lamps. The total estimated utility bill savings is $2,700 per year, based on the current energy costs, as estimated by the Ramsey County Traffic Signal Operations staff. If the energy costs escalate, the savings would be much greater. This translates into a cost savings of about 25%. The cost of replacing the lamps is about $5,400 after rebate. The price before rebate is about $10,400. The rebate is in effect until the end of the year and is received from Excel after the purchase, Based on this information, the pay back period will be two years. Not to mention, the conservation of energy. The rebate will be in effect until the end of the calendar year. If a decision is made to replace the lamps in the near future, Ramsey County estimates that their staff will be able to replace these lamps by late summer. Traffic signals that are shared with either Shoreview or Roseville have already been replaced by those cities at their expense, A number of surrounding cities such as, Maplewood, Roseville, Shoreview, White Bear Lake, and Falcon Heights have already replaced the lamps. Oakdale and North St. Paul have not replaced them. Memo LED Traffic Lights 2 No specific funds are budgeted for this purpose. The purchase of the LED lamps will require a budget amendment in the amount of $5,400. From a financial perspective, as well as from an environmental perspective, this would appear to be a prudent choice to replace the lamps, RECOMMENDED ACTION: Staff recommends that the Council authorize staff to replace the existing traffic signal lamps with the energy efficient LED lamps at a total cost of $1 0,400 before rebates. Staff also recommends that the Council authorize staff to amend the general fund budget in the amount of $5 ,400 (net of rebate). . . . ~ ...-A~ HILLS City of Arden Hills Reqnest for Conncil Action . Prepared by: SC Dept: CD Council Mtg. Date: 5/31/2005 Final Action Needed By: 5/31/2005 Agenda Item II Amendment to EDC Bv-Laws Budgeted Amount: $0.00 Actual Amount: $0,00 Funding Source: $0,00 Council Action Request: Motion to Approve Amended Economic Development Commission Ordinance 349, Section 220,04 Subd.2 Allowing Nine Members and Having A Designated Real Estate Representative Staff Recommendation: Same Advisory Commission Action: Commission Date Action .~N~t~1'~<::''!~!e!____.__u~ Not Applicable Approved _ .. __ --"'1"nr1irlg~_. _ ... PTRC EDC Supporting Documents (which are attached to this Action Form): . I:8J Memo/Letter: Staff memo dated May 25, 2005 o Resolution (No. ) o Ordinance (No, ) o Engineering Recommendation: o Attorney Recommendation: o Other: EDC Ordinance 349 Financial Implications: None Administrator/Staff Comments: Full language change for Subd 2 incorporated into attached memorandum . Page 1 of 1 . . . ~ /]'\~ HILLS MEMORANDUM DATE: May 25, 2005 TO: Mayor and City Council Michelle Wolfe, City Administrator FROM: Scott Clark, Community Development Direct@ SUBJECT: Changes to Economic Development Commission By-Laws The City Council recently directed staff to revisit the Economic Development Commission By- Laws to expand membership, Acting upon the Council's direction, the EDC looked at the by- laws and recommends that membership be expanded to an odd number (seven to nine). The EDC also recommends that a specific reference be made to have a real estate representative on the Commission. Staff is recommending the following amendment: Subd. 2 Composition. The Economic Development Commission shall consist of seven nine members appointed by the City Council. Membership shall be open to any resident or non- resident business representative that is interested in the business climate and economic development direction of the City. There shall be at least three Arden Hills residents represented on the Commission and an individual who is enl!al!ed in the real estate profession. Any member of the Commission may be removed by a majority vote of the City Council. \\Earth\Planning\Misc Files\EDC\amended bylaws,doc --- %- ~HILLS . CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA ORDINANCE NO. 349 An Ordinance Creating an Economic Development Commission The City Council of Arden Hills hereby ordains that the following section is added to the Municipal Code: Section 220.04 Economic Development Commission Subd. 1 Establishment of Commission. An Economic Development Commission is hereby established to facilitate positive interaction with the business community and advise the City Council and Economic Development Authority on economic development, redevelopment, and related community development issues. Subd. 2 Composition. The Economic Development Commission shall consist of seven members appointed by the City CounciL Membership shall be open to any resident or non- resident business represerttative that is interested in the business climate and economic development direction of the City, There shall be at least three Arden Hills residents represented on the Commission. Any member of the Commission may be removed by a majority vote of the City CounciL . Subd. 3 Attendance at Meetings. Any member of the Economic Development Commission who has unexcused absences from three consecutive meetings, or a total of one- third of all meetings in a calendar year, shall automatically be removed from office without City Council action. The City Administrator shall notify the member of his or her removaL Subd. 3 Terms and Compensation. Appointment to the Economic Development Commission shall be made on an annual basis, or more often if required. Members shall be appointed for three year terms beginning on February 1" and ending on January 31st of the third year. Initial appointments shall be as follows: three members shall be appointed for a term of three years, two members shall be appointed for a term oftwo years, and two members shall be appointed for a term of one year. Commission members shall serve without compensation. Subd. 4 Vacancies. In the case of a vacancy during the term of office of any member of the Commission, the City Council shall appoint a member to serve the remainder of the term. A vacancy shall exist if any of the following occur: death, failure to serve, or resignation. . Subd.5 Organization. The Mayor, with approval of the City Council, shall annually appoint one member to serve as Chair of the Commission. The Chair shall be responsible for #349 - 1 ;/ II J 'j I / / , meeting agendas, presiding at meetings, minutes of meetings, and reports and recommendations to the City Council. Subcommittees of the Commission may be formed from time to time based on the needs of the City and Commission. The Commission shall annually appoint a member to serve as Vice-Chair. Subd. 6 Meetings and Reports. The Commission shall hold meetings every other month, or more frequently as needed. It shall keep minutes which shall be forwarded to the City Council. The Community Development Director shall be the official staffliaison to the Commission. Subd. 7 follows: Duties and Functions. The duties and functions ofthe Commission shall be as A. Endeavor to secure a full and complete understanding of the City's needs and desires for economic development activities. B. C. D. E. - F. G. Create a focal point for the economic development efforts of the City. Assist with the development of a business retention and attraction program. Provide input and direction on the City's marketing and communication efforts. Assure the integration of the City's economic development efforts with its land use planning efforts ensuring that business attraction and expansion is not an end in itself, but is an element of a coordinated community development program. Assist in the identification of areas for rehabilitation or redevelopment. Work with the Planning Commission on plans for areas identified for redevelopment or rehabilitation. H. Assist in business promotion and recognition events, I. Interact and participate with the Chamber of Commerce and related organizations as a means of improving communications and overall responsiveness, J. Evaluate and make recofilmendations to the City Council and Economic Development Authority on economic development finance projects and programs including, but not limited to, tax increment financing, tax abatement, local rcvolving loan fund, and state incentives. K. Participate in the policy making process as requested by the City Council. This may involve occasional joint meetings with the Planning Commission and/or the City Council. L. Pcrform other duties and functions as specifically delegated by the City Council. '. , Effective Date: This ordinance shall become effective thirty days after its publication. . #349 - 2 I c' 1/ / Adoption Date: ') /} I Adopted by the City Council of the City of Arden Hills the 8th day of March, 2004, . 49 ~~/R~..// ' / eve ly Aplikowski, Mayor ATTEST: Publication Date: Published on the 17'h day of March, 2004. \\Earth\Adinin\Council\Ordinancc.s\OJ'dinance 349 Creating an Economic Development Corrurrission.doc ."'\ < -I . . 11349- 3 ~ ~HILLS City of Arden lIilIs Reqnest for Council Action . Prepared by: Scott Clark Dept.: CD Council Mtg, Date: 5-31-05 Final Action Needed By: 5-31-05 ':'''''';1(',';; Agenda Item 7cirA '.lvb,.~",") Action on GSA's Offer To Purchase Budgeted Amount: N/A A~tual Amount: N/A Funding Source: N/A Council Action Request: Motion is dependent on outcome of closed meeting. The action should be to accept or deny the GSA's Offer to Purchase, Staff Recommendation: Advisory Commission Action: Commission Date Action Planning PTRC Not Supporting Documents (which are attached to this Action Form): . 0 Memo/Letter: o Resolution (No. ) o Ordinance (No, ) o Engineering Recommendation: o Attorney Recommendation: o Other: Financial Implications: Administrator/Staff Comments: City staff and legal counsel are reviewing the GSA's document . Page 1 of 1 . Prepared by: Scott Clark Dept.: CD Council Mtg, Date: 5-31-05 Final Action Needed By: 5-31-05 ~ --A~HlLLS City of AI' den lIills Request for Cotmcil A,ctioll Council Action Request: None Staff Recommendation: Advisory Commission Action: Commission Planning PTRC Date Supporting Documents (which are attached to this Action Form): o Memo/Letter: . 0 Resolution (No, ) o Ordinance (No, ) o Engineering Recommendation: o Attorney Recommendation: o Other: Financial Implications: N/A Administrator/Staff Comments: Verbal update on TCMP activities . Agenda Item 1:a TCMP Verbal Update Budgeted Amount: N/A Actual Amount: N/A Funding Source: N/A Action _ __ _f\Jot~pplicable Not Applicable Not applicable Page 1 of 1