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Home My WebLink About2006-08-23 CC Set Agenda & Handouts ervi{{e CITY COUNCIL MEETING Wednesday, August 23, 2006 6 :30 p.m. Set Agenda = Red COUNCIL MEETING I. CALL TO ORDER 1. Roll Call II. PUBLIC HEARINGS m. APPROVAL OF AGENDA IV. APPROVAL OF COUNCIL MINUTES 1. August 9, 2006 City Council Work Session Meeting Minutes (Page 1) 2. August 9, 2006 City Council Meeting Minutes (pages 2-9) ~ CONSENT AGENDA 1. City of Centerville August 10, 2006 through August 23, 2006 Claims (Page 10 & lOa) 2. Centennial Fire District Claims through August 21,2006 (Page lOb) 3. Centennial Lakes Police Department Claims through August 10, 2006 (page 11-13) 4. Pipe Services Corp. - Scheduled Cleaning of Sewer Lines - $28,765.25 (page 14) VI. A W ARDS/PRESENTATIONS/APPEARANCES VII. OLD BUSINESS 1. CSAH 14 Joint Powers Agreement- Coned From Pre,ions \leeting Backage Road/Industrial Park Wetland Credit (Bank CoordinatorlBoard of Water and Soil Resources) - $25,148.20 (Page 15-19) 2. C'entenille Lion's Fete des Lacs 2006 Expenditures (Page 19a-19b) 3. Fete des Lars 2006 Paradt., Expenditures (page 19c) vm. NEW BUSINESS 1. Res. #06-040 - October 2006 Domestic Violence Awareness Month (Page 20) 2. Res. #06-041 -Proclaiming September 17-23, 2006 as Constitution Week (Page 20a) 2. Res. #06-041:-2- Awarding Bid & Awarding Contract for Demolition of 1601 LaMotte Drive (Page lOb-lOr) 3. Res. #06-0423 -Accepting Bid & Awarding Contract for Demolition of 7071 & 7073 CenterviUe Road (Page 20d-10e) 4. Res. #06-044 - Awarding Contract to Cross Country Underground, Inc. to Install \Vatermain on Westview Street (Page 10el) 5. Trio Inn - Notice of Liquor Liability Insurance Cancellation - (9/4/06) (Page 20f-20h) x. ANNOUNCEMENTS/uPDATES I. City Administrator, Mr. Dallas Larson 2. CSAHI4 (Update) 3. Downtown Redevelopment/St. Genevieve Property 4. Centerville Sesquicentennial 5. 2007 Budget/Levy (Page 21) 6. Potentially Dangerolls Dog - 1742 Ojibway Drive ("Bandit") (Page 22-29) XI. ADJOURNMENT **RF\lINDERS** Ms. Linda Broussard Vickers Day - August 29. 2006 (First Dav to Accept tHYidavits) Candidate Filing - August 29 - September 12. 2006 Planning and Zoning Commission Meeting - September S 2()()6 () 30 pm Council Chal11bers Parks and Recreation Committee Meeting September 2006 630 pm Council COhambers City Council Meeting September 13. 200l) () 30 P m. Council Chambers tervi{{e CITY OF CENTERVILLE 08/23/0610:52 AM Page 1 'L-staL7114ud IS5? *Check Summary Register@ Name 10100 MAIN STREET BANK Paid Chk# 021590 ASSURANT EMPLOYEE Paid Chk# 021591 AVLlC Paid Chk# 021592 BURNETT TITLE Paid Chk# 021593 BURSTEIN - GLASER Paid Chk# 021594 BWSR WETLAND BANK ADMIN. Paid Chk# 021595 CENTERVILLE LIONS Paid Chk# 021596 CINGULAR WIRELESS Paid Chk# 021597 CITY OF CIRCLE PINES Paid Chk# 021598 CONTINENTAL RESEARCH Paid Chk# 021599 DAVCO Paid Chk# 021600 EARL F. ANDERSEN INC Paid Chk# 021601 KJOHLHAUG ENVIRONMENTAL Paid Chk# 021602 LAND MAINTENANCE Paid Chk# 021603 LEE, TOM Paid Chk# 021604 MENARDS - FOREST LAKE Paid Chk# 021605 MEYER, JOHN Paid Chk# 021606 MPCA Paid Chk# 021607 NATIONWIDE RETIREMENT Paid Chk# 021608 PERA Paid Chk# 021609 PRESS PUBLICATIONS Paid Chk# 021610 PUBLIC EMPLOYEES INS Paid Chk# 021611 RUSSELL J. SCHULTZ- Paid Chk# 021612 S & T OFFICE PRODUCTS Paid Chk# 021613 TIME SAVER Paid Chk# 021614 US BANK CORPORATE TRUST Paid Chk# 021615 US BANK* Paid Chk# 021616 VOLK SEWER & WATER Paid Chk# 021617 XCEL ENERGY UPDA TE Check Date 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 8/23/2006 Total Checks AUGUST 2006 Check Amt $121.50 VOL. SHORT TERM DISABILITY $624.07 DEF COMP W/H 8-24-06 $311.27 2004 STR. PROJ. SPEC. ASSESS. $7,554.65 21ST AVE IMPR. SERV THRU 7-31- $30,814.00 WETLAND CREDIT - BACKAGE ROAD/ $42.91 T-SHIRTS FOR THE 2006 PARADE $129.65 CELL PHONE CHARGES $6,614.26 POLICE BLDG - DEBT SERV - JULY $174.89 WASP AWAY NG $4,100.00 ASBESTOS ABATEMENT $785.90 LAMOTTE PARK - PARTS $55.00 2005-185 CENTERVILLE DRILLlNG- $2,524.05 LAWN MOWING $122.69 REIMBURSEMENT FOR FETE DES LAC $28.03 SUPPLIES $500.00 REIMBURSEMENT FOR FLEX PLAN $23.00 2005 WASTEWATER 16 HRS $356.38 DEF COMP W/H 8-24-06 $2,239.79 PERA W/H 8-24-06 $100.10 ORD #9 $20,990.93 HEALTH INS - SEPT. 2006 $3,000.00 REIMBURSEMENT FOR SOD ESCROW - $1,511.10 CHAIRS $144.00 CITY COUNCIL MEETING 8-9-06 $6,825.00 #801072900 - GEN OBL. TEMP. 1M $42.55 LABELS $21,885.93 HUNTERS CROSSING 3RD ADDN PAY $2,413.46 1694 SOREL ST - SERV THRU 8-6- $114,035.11 /j/-V Centennial Fire District Check Register 8/21/2006 The disbursements listed below are submitted by the Centennial Fire District for your approval: DATE 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 8/1712006 CHECK# NAME 15302 15303 15304 15305 15306 15307 15308 15309 15310 15311 15312 15313 15314 15315 15316 ACCOUNT Arthur Mohler City of Lino Lakes David Bruder Loffler Business Systems Office Depot Qwest Ross Industries, Inc. Xcel Energy Arthur Mohler Circle Pines Sausage Crown Trophy David Bruder Janet Haapoja Office Depot Ross Industries, Inc. Total 42190 - Fire Prevention Supplies 42000 - Payroll Expenses 42220 - Travel, Conf., Schools 42180 - Office Supplies Expense 45010 - Safety Camp Expense 42240 - Telephone 42190 - Fire Prevention Supplies 42254 - Station 2 - Electric 45010 - Safety Camp Expense 45010 - Safety Camp Expense 45010 - Safety Camp Expense 45010 - Safety Camp Expense 45010 - Safety Camp Expense 45010 - Safety Camp Expense 45010 - Safety Camp Expense 1 of 1 AMOUNT 45.03 18,909.44 22.00 29.37 32.58 214.45 219.24 767.91 57.60 224.50 492.03 73.76 37.83 36.56 15.66 21,177.96 j/JJ tervi[[e 'EstabfisneLf 18S7 1880 :Main Street, Centervi{fe, :MN 55038 651-429-3232 or q:~ 651-429-8629 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVILLE RESOLUTION #06-041 A RESOLUTION PROCLAIMING SEPTEMBER 17-23, 2006 AS CONSTITUTION WEEK WHEREAS, our Founding Fathers, in order to secure the blessings of liberty for themselves and their posterity, did ordain and establish a Constitution for the United States; and WHEREAS, it is important that all citizens fully understand the provIsIons and principles contained in the Constitution in order to effectively support, preserve and defend against all enemies; and WHEREAS, September 17, 2006, marks the two hundred nineteenth anniversary of the drafting of the Constitution of the United States of America by the Constitutional Convention; and WHEREAS, it is fitting and proper to accord official recognition of this magnificent document and its memorable anniversary; and WHEREAS, the independence guaranteed to American citizens, whether by birth or naturalization, should be celebrated during Constitution Week:, September 17 through 23, 2006, as designated by proclamation of the President of the United States of America in accordance with Public Law 915; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTERVILLE, MINNESOTA THAT: 1. The City of Centerville proclaims the week of September 17 through 23, 2006 as CONSTITUTION WEEK. ATTEST: CITY CLERK MAYOR .2JtL- Lions Club of CenterviUe 6849 Centerville Road Centerville, MN 55038 14 August 2006 Mayor Mary Capra City Council Members Centerville, MN 55038 Mayor & Council; I am pleased to report the final accounting for the Fete des Lacs 2006 celebration funds that were donated by the City of Centerville. On behalf of the Centerville Lions Club, I wish to thank you for your support of the festivaL Attached find a spreadsheet detailing the expenses, which had been paid by your funding. If there are any questions and or need of copies of the receipts for these expenditures, I would provide them. Feel free to call me at my home (651) 429-2140 or cell phone (651) 587-1250. I thank you also, for your time and effort you give to the citizens and businesses of Centerville. r \... Respectfully submitted: ...-,,-/..., ~/'-"- --. C"---V--<-i c '-- Thomas Wilharber Treasurer Centerville Lions Club 1 End as /9 fL Centerville Lion Club Centerville, MN 55038 Final report of expenditures for the usage of of City of Centerville's donated money for the 2006 Fete des Lacs celebration. Cities donation was $12,372.00 on 21 April 2006. Purpose Hollywood Protechnics - Fireworks Presentation on 4Aug06 AA Tent Rental Deposit All Around Rental- Tents /Stage /Tables Chairs AA Tent Rental- Tent / Stage / Tables / Chairs / Skirting $ 50.00 Teen Band - Peter Steward $ 50.00 Teen Band - Tyler Nyhus $ 50.00 Teen Band - Josh Meyer $ 50.00 Teen Band - Sean Chapman $ 100.00 Teen Band Winner - Tyler Nyhus $1500.00 Sonic Envy - Sound Equipment & services $ 400.00 Tom Lee Band - Entertainment $ j 835":'0'0 Porta-Potties - Sanitation facilities at parade / '/1 ~ . Y II & park sites 4-6 Aug06 /~ $14,g77:--6.~&) (/1/ / LJ I~ fI y-- The Centerville Lions paid the difference of $1, 7~ iA..f~~vl Date 27May06 27May 2Aug 2Aug 4Aug 4Aug 4Aug 4Aug 4Aug 5Aug 7Aug lOAug Check # 1644 1655 1682 1683 1684 1685 1686 1687 1688 1689 1701 1718 Amount $5000.00 $1350.00 $ 995.00 $2697.00 /91 to- W C) C ::;:) m w c ~ <C Q. 0 0 C) C) o C> 0 'I(-~ ID 0~ n 0 o v) 0 <:) <:) 0 0 0 C) I:J 0 0 (j) OJ ('.'- C.l """ l() <.t) <'''1 <:) ~ 0 0 0 l() () I~ 0 C"-l ..q ..q I" 1'- CO (-.J N 0 ,..: 0 0 0 P" ,,) C' '<t. Cll (',I "" 0 ~ 0J 0) <:) <:) LD l.0 C) +',;/) <0 <of} (/') N (') ,- (T) ,-- N <:) ,... ,- ,- (/) """ ~ ,I} (f) fF} (it- (/') (il- l'- <<i tit (f:r y:::r U} 0 tF't tit .s:::. II) 0 c: 3 <:) ,... ,... N II) 0)"" ~ <0 N ~ N ,... l8~ C9 l8 ,... 0) <:) w ~ q ~ ~ ""11) M I I I t- U M N ,... 13 GO ~ ,...M W Z GO II) <:) q M ~&? ....J r= ,. N t? cq <:( C> S ~ N ~ M .... ....M f- a ~ II) .... 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II) E ~ 0 l\1 0.. "C c::; U ell ;:, ~ .!a l: 0 :c ... l\1 :iE ell l\1 l: S ... a v c: ~ Gi S ..- .2l ~ l: ID j ';: II) l: :E tn la CI) c: u .s:::. II) c::; ~ ~ .s:::. e lil ell l: tn l\1 8 tn Q) E Iii :; :; .s:::. IQ "'0 ~ ~ .s:::. a l: u J II) ~ II) l\1 l\1 l\1 l\1 II) ~ 0 ~ E .ll: 0.. 0.. l: ... 1:: :g 'C: g 0 ~ ~ .s:::. '- 'iij - .s:::. II) ... ... ;:, .s:::. l\1 l\1 '- Q) u 0 .., tn tn N CI) u: 0:: m ::E t- o:: /'fj~ tervi[[e 'L,;tabli'sficl{ 1&'::;7 STA TE OF MINNESOTA 1880 :Main Street, CentervilIe, :MW 55038 651-429-3232 or Pa:( 651-429-8629 COUNTY OF ANOKA CITY OF CENTERVILLE RESOLUTION #06-042 RESOLUTION AWARDING CONTRACT TO RO-SO CONTRACTING, INC., TO PROVIDE DEMOLITION SERVICES AT THE PROPERTY LOCATED AT 1601 LAMOTTE DRIVE WHEREAS, the City of Centerville invited the public to respond to its proposal to contract for the demolition and related services of certain City-owned buildings located at 1601 LaMotte Drive, Centerville, Minnesota. WHEREAS, the requested demolition work qualifies as providing an "improvement" as defined by Minnesota Statute Section 429.021, subdivision 1. WHEREAS, the value of the proposed demolition contract was estimated to possibly exceed $50,000. WHEREAS, an advertisement of the proposed demolition contract was duly published in the Quad Community Press newspaper on August 1, 2006 and advertised that sealed bid would be accepted by the City until 10:00 a.m. on August 18, 2006. WHEREAS, the City did not receive any responsive bid proposals by the deadline of 10:00 a.m. on August 18, 2006. WHEREAS, after receiving no bids the City sought and received an estimated proposal to perform the demolition services from RO-SO Contracting, Inc., on August 23, 2006, in the amount ofa base price of $42,500 plus optional work for an additional $11,750, or for a possible total amount of $54,250. WHEREAS, the City finds that the estimated proposal to perform demolition work from RO-SO Contracting, Inc., is a responsible and qualifying proposal which adequately fulfills the scope and requirements of the bid to provide demolition services for 1601 LaMotte Drive as advertised by the City as closing on August 18,2006 at 10:00 a.m. - 1 - 2tJ~ WHEREAS, it is necessary to demolish the buildings at 1601 LaMotte Drive because they are vacant and a blight, and present a nuisance and a potential danger to the pubic. Also, the area has been designated for redevelopment pursuant to the City's Downtown Redevelopment Master Plan. Time is of the essence to the City in order to go forward with this Downtown Redevelopment Master Plan. NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the City of Centerville, pursuant to the authority granted by Minnesota Statue Section 420.041, subdivision 2, DOES AWARD AND GRANT the contract to perform the demolition services regarding 1601 LaMotte Drive to RO-SO Contracting, Inc., under the terms, conditions, and proposal received by the City on August 23,2006, in a amount no greater than $54,250.00, and under any further terms or conditions as required under law or ordinance, or by and through the advice and desires of the City Administrator or City Attorney. PASSED AND ADOPTED by the City Council this 23rd day of August, 2006. Mayor, Mary Capra Attest: City Clerk, Teresa Bender - 2- ;}J~ tervi{{e 'Lsta611sficdO lSS7 STATE OF MINNESOTA 1880 :Main Street, Centerviffe, :M:N 55038 651-429-3232 or 'F4651-429-8629 COUNTY OF ANOKA CITY OF CENTERVILLE RESOLUTION #06-043 RESOLUTION AWARDING CONTRACT TO RO-SO CONTRACTING, INC., TO PROVIDE DEMOLITION SERVICES AT THE PROPERTY LOCATED AT 707117073 CENTERVILLE ROAD WHEREAS, the City of Centerville invited the public to respond to its proposal to contract for the demolition and related services of certain City-owned buildings located at 7071/7073 Centerville Road, Centerville, Minnesota. WHEREAS, the requested demolition work qualifies as providing an "improvement" as defined by Minnesota Statute Section 429.021, subdivision 1. WHEREAS, the value of the proposed demolition contract was estimated to possibly exceed $50,000.. WHEREAS, an advertisement of the proposed demolition contract was duly published in the Quad Community Press newspaper on August 1, 2006 and advertised that sealed bid would be accepted by the City until 10:00 a.m. on August 18,2006. WHEREAS, the City did not receive any responsive bid proposals by the deadline of 10:00 a.m. on August 18,2006. WHEREAS, after receiving no bids the City sought and received an estimated proposal to perform the demolition services from RO-SO Contracting, Inc., on August 23, 2006, in the amount ofa base price of $54,500 plus optional work for an additional $13,000, or for a possible total amount of $67,500. WHEREAS, the City finds that the estimated proposal to perform demolition work from RO-SO Contracting, Inc., is a responsible and qualifying proposal which adequately fulfills the scope and requirements of the bid to provide demolition services for 7071/7073 Centerville Road as advertised by the City as closing on August 18, 2006 at 10:00 a.m. - 1 - ;(;Jd WHEREAS, it is necessary to demolish the buildings at 7071/7073 Centerville Road because they are vacant and a blight, and present a nuisance and a potential danger to the pubic. Also, the area has been designated for redevelopment pursuant to the City's Downtown Redevelopment Master Plan and has been designed to be included in the reconstruction of Anoka County State Aid Highway 14. Time is of the essence to the City and Anoka County in order to go forward with the Downtown Redevelopment Master Plan and the reconstruction of Anoka County State Aid Highway 14. NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the City of Centerville, pursuant to the authority granted by Minnesota Statue Section 420.041, subdivision 2, DOES AWARD AND GRANT the contract to perform the demolition services regarding 7071/7073 Centerville Road to RO-SO Contracting, Inc., under the terms, conditions, and proposal received by the City on August 23,2006, in a amount no greater than $67,500.00, and under any further terms or conditions as required under law or ordinance, or by and through the advice and desires ofthe City Administrator or City Attorney. PASSED AND ADOPTED by the City Council this 23rd day of August, 2006. Mayor, Mary Capra Attest: City Clerk, Teresa Bender -2- /tJe, 'L.sta611s/lcd- 18S7 STATE OF MINNESOTA 1880 'Main Street, Centervi[[e, 'M:N 55038 651-429-3232 ortp~651-429-8629 COUNTY OF ANOKA CITY OF CENTERVILLE RESOLUTION #06-044 RESOLUTION AWARDING CONTRACT TO CROSS COUNTRY UNDERGROUND, INC., TO INSTALL WATERMAIN ON WESTVIEW STREET WHEREAS, the City of Centerville sought and received an estimated proposal to perform the installation of a watermain and related products and services from Cross Country Underground, Inc., on or about August 8, 2006, in the amount of$6,240. WHEREAS, the City finds that the estimated proposal to perform said work from Cross Country Underground, Inc., is a responsible and qualifying proposal which adequately fulfills the scope and requirements of the project to install a watermain and related products under Westview Street. NOW, mEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the City of Centerville, DOES AWARD AND GRANT the contract to perform the installation of a watermain and related products and services under Westview Street to Cross County Underground, Inc., under the terms, conditions, and proposal received by the City on or about August 8, 2006, in a amount no greater than $6,240, and under any further terms or conditions as required under law or ordinance, or by and through the advice and desires of the City Administrator or City Attorney. PASSED AND ADOPTED by the City Council this 23rd day of August, 2006. Mayor, Mary Capra Attest: City Clerk, Teresa Bender - 1 - ;!lJe I tervi{[e 'E....-tabllsheLt 185'7 1880 'Main Street, Centerviffe. 'M:N 55038 651-429-3232 or 'F~ 651-429-8629 August 23, 2006 ;I~ Yp/ Mr. Paul Montain Mountain Enterprises, Inc. Dba Trio Inn 7082 Centerville Road Centerville, MN 55038 Dear Mr. Montain: Please take notice that the City Council will hold a hearing to consider Revocation or Suspension of your liquor licenses (On Sale, Off Sale and Sunday) on August 23,2006 at 6:30 p.m. at City Hall, 1880 Main Street, Centerville, Minnesota in Council Chambers. This hearing is scheduled due to the fact that Upper Midwest Program Management intends on canceling your liquor liability insurance on September 4,2006. I have enclosed a copy of a notice received from Upper Midwest Program Management regarding your insurance coverage for your review. I have also enclosed a copy of Chapter 111: Liquor Regulations, ~ 111.20 & 111.21 for your review. If you have any questions or concerns regarding this matter, please feel free to contact me. Sincerely, Teresa Bender City Clerk Cc: Mr. Kurt Glaser, City Attorney State of Minnesota Dept. of Public Safety City Council 2lJ.j ~B/21/200' 22:48 FAX 9529470163 UMPM,INC. 1lI001/002 ~b~ Upper Midwest Program Management ~\~ P. O. Box 24229 ~ t .'f' Edina, MN 55424 ~ ~~{ . ~ (952) 947-0161 ,,' ~ \ "< ~ fax (952) 947-0163 \'1( ~\ ~\'.J F;;:;~;~~E V r p tr 'f f~ ~ ,,} (XP 1 At t/ I ~~ It,; 651-429-8629 . -.) ;X.~ Mountain Enterprises, Inc. dba Trio Inn ~ 'll!V, ~ .' Policy # ReA 001970-05/ UM 0004144 . ~ }, ." ' 2 page including this cover sheet .:j~\Ii ~\ ____________--______________________________________________________o____"__________________ ___~. Please be advised the Liquor Liabili Insurance for this license will cancel on j 9/04-2006 for Non-compliance of Inspection ecommendations. Date: August 22, 2006 Attn: City of CentervilJe Attn: Liquor License / City Clerk Fax # Re: Thank You, Keesha McAtee UMPM, Inc. ~~ Cc: Barb S. , ci6 Y 201" 08/21/2008 22:48 FAX 8528470183 UMPM,IHC. III 002/002 ACORD... CERTIFICAT ..... OF LIABILITY INSURA~ ,.,E I gATE (MlWglVV) '2130105 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION UMPM. Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOl-peR. THIS CERnFICATE OOES NOT AMEND, EXTEND OR 9975 valley View Rd. ALTEFI THE COVERAGE AFFORDED BY THE; POLICIES BELOW. Suite D Eden pll1lrle, MN 55343 INSURERS AFFORDING COVERAGE S52-947-0161 .-- -....-.- --' . INSURltl INSUR5FI A STATE NATlONAL INSUFlANCE COMPANY TFlIO INN INSuRER B. MOUNTAIN ENTERPRISES,INC. DBA! -- ...... 7082 CE::lIITeRVILLE ROAD INSURER C: .. .....--... .-. --... CENTERVllLE, MN 55038 INSlJR5R D; - --.- --"-. INSlIR5R E;: COVERAGES THE rOLlCIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POUCY PERI OJ INDICATED. NOlWlTHSTANDING AN" f<EQUII<EMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WliH r.tesPECT TO WHICH THIS CEIITIFICATE MAY BE ISSUED OR ~'Av PERTAIN. THE INSURANCE AFFORDED BV THE POI.ICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES AGGREGATE LIMITS S~OWN MAY HAVE; BE;EN REOUCEO BY PAID CLAIMS. INS':! .. . -----. ---...- ..-. . 1"'-__ ~~'i EFFECTIIIE ~Itf: I~~~~~~ -- .--- --. ---.. . TVP! OF INSURANC!;: POLICY NUMBER , LIMITS LTR I I i Gll:NI:AAL UA81UTV EACH OCCURRENCE S ~ . - .-.. -. --.... .. I COMMERCLo\L GENEAAL LIABILI1'1 FIRE DAMAGE (MY ons rors) S I .. CLAIMS MACE T- OCCUR MED EXP (^ny Oil. p.,_] S ------. . f'EASQNAL & ACV IN.NRV 5 -- I.... ___._..... GENERAL AGGREGATE . 5 -=~- , ~'L AGG~E~ LIMIT A"''''nER' FRODUCTS . COMFiOF AI3G S I , POLICY ~l'&1r L.OC ..._- ........ ...- ~TOr.coBILl L1ABILrTl' , COM8111/6"O SIII/GLE LIMIT S ANY AuTO (Ea 9cci~enl) -. ALL OWNED AUTOS 80DIL Y INJURY - S SCHEDU~E;O AUTOS ' (Pel pefl;On) .-.-- --.. !.._.1 HIRED AUTOS OODIL'f INJURY $ NON.OWNED AUTOS IP9' .cclOanO -. -.-.- -- ---- , PRO~Efll'f DAMAGE 5 , (F., ace O.nll I CARAGl LIA81LITY i ~ A~~Q O~L_~.:_~_ACCI~S.. ... .. ANV "UTO o rHEA TH"N EA ACC.. .i-~.._.- AUTe ONLY AGO $ IiltC lSS LIA 81LITY , I ~'" o,,~'"'"'" s r~~ OCCUR L CLAIMS MAllE 1 AClClREClATE $ u. s u_ __ '- .1 DEDUCTIBLE I S RE'lENTION S S WORlCER$ COMPPlSA11DN AND I T';;~P~J~ i IOJ~. I!MPLOVER$' LIABILITY -..- EL EACH ACCIDENT $ I E L DISEASE. EA EMPLOYEE S .0.0 E.L. D~EASe: . POLICY LllAlT $ A I OTHER LIQUOR LIABILITY UM 0004144 12-31~5 12-31-06 S300 , 000/300,000 I I DESCRIPTION 01' OPERATlONS/LOCATlONSlVEHICLESllXCLUllIONll ADDED !lV ENDOA8bll;N'T1VECIAL PROVISIONS TAVERN CERTIFICATE HOLDER I I AtlDIT1QNAL INSURED; INSURm Ll!.TTI!A: CANCELLAnON CITY OF CENTERVILLE SHOULD ANV 0' TIll! A!lOVE DE&CIlI8EC PQUCllS BE CANCElLlZl BEFORE THI! 1!XPuu."ON 1880 MAIN STREET DATI! TMI!IlEOI'. TME ISSUINQ INSURER WILL ENDEAVOR TO MAIL ~ DAVe WR~N CENTERVILLE, MN 55038 '0"" 10 TIE '......n ~M1O "" "". IUT FA"'.. 10.... '"AU. ATTN: LIQUOR LICENSE DEPT. IMPOS2 NO oaUGATION OFlI,Idj rTl' Of Y K_ ruN T7 INSURER, IT'S AQ!NT5 01'1 REPRE8ENTATI\'a. _ () AUlltORlZED REPRESEN'TATIn ~- r..(1~ r- ~ ACORD 25-S (7197) @ AcbRD CORPORATION 1988 $Jj ESTIMATED IMPACT OF PROPOSED TAX RATE CHANGE Value Current City Estimated City Value of Home Change Tax (2006) Tax (2007) Difference Percent $ 300,000.00 0% $ 1,514.52 $ 1,550.70 $ 36.18 2.39% $ 309,000.00 3% $ $ 1,597.22 $ 82.70 5.46% $ 315,000.00 5% $ $ 1,628.24 $ 113.72 7.51% $ 330,000.00 10% $ $ 1,705.77 $ 191.25 12.63% JJ tervi{{e ~tabasfzeL{ 1<<-~.c;7 1880 ::Main Street, Centervi[(e, 9vf.N 55038 651--429-3232 or PIV( 651-429-8629 August 23, 2006 Mr. John Roloff 1742 Ojibway Drive Centerville, MN 55038 Dear Mr. Roloff: It was recently brought to the City's attention that the Centennial Lakes Police Department has investigated an incident involving your dog "Bandit" and has declared "Bandit" a Potentially Dangerous Dog. As the "Declaration of Dangerous Dog" documentation states you have the right to due process and the right to appeal the police department's determination. You have 14 days from receipt of this declaration to submit your Compliance! Appeal to them and register with the City. City records also show that "Bandit" is licensed with the City. I have enclosed a copy of City Code, Chapter 90 - Confinement, Licensing and Care Relating to Animal Control for your reference. I have also enclosed the Minnesota State Statutes that the Centennial Lakes Police Department refer to in their documentation for your reference. This item will be placed on Council's August 23, 2006 & September 13, 2006 Council Agenda for review and if you desire to attend the meeting, it commences at 6:30 p.m. here at City Hall. If you have any questions regarding this issue, please feel free to contact myself or the Centennial Lakes Police Department at 763-784-2501. Sincerely, (___~<~It~~ Teresa Bender City Clerk, CMC Ene. #- Minnesota Statutes 2005,347.50 Page 1 of2 . . Minnesota ~0mce of the Revisor .of Statutes House I Senate I Joint Departments and Commissions I Bill Search and Status I Statutes, Laws, and Rules Minnesota Statutes 2005, 347.50 Legislature Home I Links to the World I Help I Ac Copyright 2005 by the Office of Revisor of Statutes, State of Minnesota. Minnesota statutes 2005, Table of Chapters Table of contents for Chapter 347 347.50 Definitions. Subdivision 1. Terms. For the purpose of sections 347.50 to 347.56, the terms defined in this section have the meanings given them. Subd. 2. Dangerous doq. "Dangerous dog" means any dog that has: (1) without provocation, inflicted substantial bodily harm on a human being on public or private property; (2) killed a domestic animal without provocation while off the owner's property; or (3) been found to be potentially dangerous, and after the owner has notice that the dog is potentially dangerous, the dog aggressively bites, attacks, or endangers the safety of humans or domestic animals. Subd. 3. Potentially dangerous doq. "Potentially dangerous dog" means any dog that: (1) when unprovoked, inflicts bites on a human or domestic animal on public or private property; (2) when unprovoked, chases or approaches a person, including a person on a bicycle, upon the streets, sidewalks, or any public or private property, other than the dog owner's property, in an apparent attitude of attack; or (3) has a known propensity, tendency, or disposition to attack unprovoked, causing injury or otherwise threatening the safety of humans or domestic animals. Subd. 4. Proper enclosure. "Proper enclosure" means securely confined indoors or in a securely enclosed and locked pen or structure suitable to prevent the animal from escaping and providing protection from the elements for the dog. A proper enclosure does not include a porch, patio, or any part of a house, garage, or other structure that would allow the dog to exit of its own volition, or any house or structure in which windows are open or in which door or window screens are the only obstacles that prevent the dog from exiting. http://www.revisor.leg.state.mn.uslbinlgetpub.php?pubtype=ST AT _CHAP _ SEC&year=cu... 8/23/2006 ,Z3 Minnesota Statutes 2005,347.50 Page 2 of2 Subd. 5. OWner. "Owner" means any person, firm, corporation, organization, or department possessing, harboring, keeping, having an interest in, or having care, custody, or control of a dog. Subd. 6. SUbstantial bodily harm. "Substantial bodily harm" has the meaning given it under section 609.02, subdivision 7a. Subd. 6a. Great bodily harm. "Great bodily harm" has the meaning given it under section 609.02, subdivision 8. Subd. 7. AnimaJ. control authority. "Animal control authority" means an agency of the state, county, municipality, or other governmental subdivision of the state which is responsible for animal control operations in its jurisdiction. HIST: 1988 c 711 s 1; 1989 c 37 s 3-5; 1994 c 550 s 1; 1Sp2001 c 8 art 8 s 14,15 Please direct all comments concerning issues or legislation to your House Member or State Senator. For Legislative Staff or for directions to the Capitol, visit the Contact Us page. General questions or comments. http://www.revisor.leg.state.mn.us/binlgetpub. php?pubtype=ST AT_CHAP _ SEC&year=cu... Sn3noo)2! Minnesota Statutes 2005,347.51 Page 1 of3 .... Minnesota ~Ofllce of the Revisor of Statutes House I Senate I Joint Departments and Commissions I Bill Search and Status Minnesota Statutes 2005, 347.51 Legislature Home I Links to the World I Help I At I Statutes, Laws, and Rules Copyright 2005 by the Office of Revisor of Statutes, State of Minnesota. Minnesota statutes 2005, Table of Chapters Table of contents for Chapter 347 347.51 Dangerous dogs; registration. Subdivision 1. Requirement. No person may own a dangerous dog in this state unless the dog is registered as provided in this section. Subd. 2. Registration. An animal control authority shall issue a certificate of registration to the owner of a dangerous dog if the owner presents sufficient evidence that: (1) a proper enclosure exists for the dangerous dog and a posting on the premises with a clearly visible warning sign, including a warning symbol to inform children, that there is a dangerous dog on the property; (2) a surety bond issued by a surety company authorized to conduct business in this state in a form acceptable to the animal control authority in the sum of at least $50,000, payable to any person injured by the dangerous dog, or a policy of liability insurance issued by an insurance company authorized to conduct business in this state in the amount of at least $50,000, insuring the owner for any personal injuries inflicted by the dangerous dog; (3) the owner has paid an annual fee of not more than $500, in addition to any regular dog licensing fees, to obtain a certificate of registration for a dangerous dog under this section; and (4) the owner has had microchip identification implanted in the dangerous dog as required under section 347.515. Subd. 2a. Warning symbo1. If a county issues a certificate of registration to the owner of a dangerous dog pursuant to subdivision 2, the county must provide, for posting on the owner's property, a copy of a warning symbol to inform children that there is a dangerous dog on the property. The design of the warning symbol must be uniform and specified by the commissioner of public safety, after consultation with animal control professionals. The commissioner shall provide the number of copies of the warning symbol requested by each county and shall charge the county the actual cost of the warning symbols received. The county may charge the registrant a reasonable fee to cover its administrative costs and the cost of the warning symbol. http://www.revisor.1eg.state.mn.uslbin/getpub. php?pubtype==ST AT_CHAP _SEC&year=cu... 8/23/20$ Minnesota Statutes 2005, 347.51 Page 2 of3 Subd. 3. Fee. The county may charge the owner an annual fee, in addition to any regular dog licensing fees, to obtain a certificate of registration for a dangerous dog under this section. Subd. 3a . Dangerous dog designation review. Beginning six months after a dog is declared a dangerous dog, an owner may request annually that the animal control authority review the designation. The owner must provide evidence that the dog's behavior has changed due to the dog's age, neutering, environment, completion of obedience training that includes modification of aggressive behavior, or other factors. If the animal control authority finds sufficient evidence that the dog's behavior has changed, the authority may rescind the dangerous dog designation. Subd. 4. Law enforcement; exemption. The provisions of this section do not apply to dangerous dogs used by law enforcement officials for police work. SOOd. 5. Exemption. Dogs may not be declared dangerous if the threat, injury, or damage was sustained by a person: (1) who was committing, at the time, a willful trespass or other tort upon the premises occupied by the owner of the dog; (2) who was provoking, tormenting, abusing, or assaulting the dog or who can be shown to have repeatedly, in the past, provoked, tormented, abused, or assaulted the dog; or (3) who was committing or attempting to commit a crime. Subd. 6. Repealed, ISp2001 c 8 art 8 s 30 Subd. 7. Tag. A dangerous dog registered under this section must have a standardized, easily identifiable tag identifying the dog as dangerous and containing the uniform dangerous dog symbol, affixed to the dog's collar at all times. The commissioner of public safety, after consultation with animal control professionals, shall provide by rule for the design of the tag. Subd. 8. Loca~ ordinances. A statutory or home rule charter city, or a county, may not adopt an ordinance regulating dangerous or potentially dangerous dogs based solely on the specific breed of the dog. Ordinances inconsistent with this subdivision are void. Subd. 9. Contracted services. A county may contract with another political subdivision or other person to provide the services required under sections 347.50 to 347.54. Notwithstanding any contract entered into under this subdivision, all fees collected under sections 347.50 to 347.54 shall be paid to the county and all certificates of registration must be issued in the name of the county. HIST: 1988 c 711 s 2; 1989 c 37 s 6-10; 1991 c 195 s 1; 1994 c 550 s 2; 1997 c 187 art 3 s 32; lSp2001 c 8 art 8 s 16-18 http://www.revisor.leg.state.mn.us/bin/getpub.php?pubtype=ST A T _CHAP _ SEC&year=cu... 8123/20~ Minnesota Statutes 2005,347.51 Page 3 of3 Please direct all comments concerning issues or legislation to your House Member or State Senator. For Legislative Staff or for directions to the Capitol, visit the Contact Us page. General questions or comments. http://www.revisorJeg.state.mn.uslbinlgetpub.php?pubtyp<=.STAT_CHAP_ SEC&year---<:u... 8123/20~ 1 C, 0 py jt)" Qdlj of " " ' . Ce.v\;tcY\JL L~.Q Centennial Lakes Police Department 54 North Road, Circle Pines, MN 55014 (763) 784-2501 Fax (763) 784-0082 August 22, 2006 John Wilford Roloff 1742 Ojibway Dr. CenterviIIe, MN 55038 Dear Mr. Roloff, On August 10, 2006, your dog, "Bandit" a Lhasa Apso was involved in a bite incident. (Centennial Lakes Police Department ICR #06-187572). You are hereby notified pursuant to CenterviIIe City Ordinance 24.16, that your dog Bandit is designated a POTENTIALLY DANGEROUS ANIMAL. Pursuant to City Ordinance 24.16 an owner of a potentially dangerous animal shall be registered by the City stating your dog is potentially dangerous. Additionally, per ordinance 24.16 you are required to license the dog with the city and provide proof of vaccinations to the city. Pursuant to City Ordinance 24.16 you must obtain microchio identification for your dog. Please make arran2ements to re2ister. license and microchio your d02 within two weeks. If the animal is to be relocated from its current address or given or sold to another person, the notification must be given in: writing at least fourteen (14) days prior to relocation or transfer of ownership. The notification must include the current owner's name and address, the relocation address, and the name of the new owner, if any. I have enclosed a copy ofCenterville Ordinance 24.16 (Designation as Dangerous or Potentially Dangerous Animal), 24.17 (Notification of New Address), and 24.18 (Dangerous Animal or Potentially Dangerous Animal Requirements) for your review. Please contact me at the above listed number or the City ofCenterville at 651-429-3232 should you have any questions regarding these ordinances. Sincerely, ~?C!l~~ Robert A. Makela Chief of Police ~ Britni Austm Community Service Officer /f I' .: . . . I ~oo -~, Ta .cY n-\ \; , ~C;) w ~ y +,\0 &i~ p. 1 / , ~n 10 06 01:45p C E R T I FIe A"T E OF V AC C I N A T ION Date of Rabies Vaccination: 10-28-04 Next Rabies Vaccination On: 11-08-06 Certificate No: 0 Previous Rabies Vaccination: <oldtag> VETERINARY CLINIC Birch Lake Animal Hospital 4830 White Bear Pkwy. White. Bear Lake, MN 55110 651-426~2246 OWNER OF ANIMAL Betty Roloff 1742 Ojibway Drive Centerville, MN 55038 County: This is to certify... THAT I HAVE VACCINATED AGAINST RABIES THE ANIMAL DESCRIBED BELOW. Patient information... PATIENT: Bandit SPECIES: Canine SEX: Neutered Male Color and markings: TanlWhite TAG NO: 17988 WEIGHT: 27.00 AG E: 2y Signed b<-. ~~\(; pp ~Lc.6 Dr. *** License: Vaccinations done... Lyme Disease Annual Vac 11-08-06 Da2ppv Annual Vac 11-08-06 ~~Il~'_>.~~~< 11-03-03 11-08-0 *** Corona Annual Vac Rabies Vaccine Information... MFG BY: MERIA LOT EXP: 08/12/06 SER.NO: 18033A ADM: SQ ~f G R 0 U P N C August 14, 2006 Honorable Mary Capra, Mayor of The City of Centerville City of Centerville City Hall 1880 Main Street Centerville, MN 55038-9794 Dear Mayor Capra: The Beard Group, Inc. would like to thank you for allowing us to present our qualifications and vision for the downtown Centerville redevelopment at your City Council work-session on August 9th. The Beard Group, Inc. is very excited about the opportunity to redevelop downtown Centerville. The proposed development will provide a unique, mixed use downtown consisting of commercial, retail, for-sale townhomes, and senior housing options along with an affordable housing option for residents of Centerville. As requested by the Council at the conclusion of the work-session, The Beard Group, Inc. will work with the City Attorney, Kurt Glaser, and the City Administrator, Dallas Larson, to create a preliminary Development Agreement that will allow the Beard Group, Inc. to work on refining the downtown plans, underwriting costs and incorporating timeframes with the various phases. At the end of the Preliminary Development Agreement (December 31, 2006) the estimated redevelopment timeframes and costs will be outlined. Assuming the City of Centerville and The Beard Group, Inc. are in agreement with the estimated timeframes and economic involvement by the City, it would be our intent to enter into a Master Development Agreement to complete all phases of the downtown redevelopment area. For your reference we have included copies of the Power Pointlresentation (electronic version - located in the back of the book) which was shown at the July 9 meeting along with some general information on the Beard Group Inc. We request that a copy of be given to each member of the City Council and the Planning Commission. Working cooperatively the City ofCenterville and The Beard Group, Inc. will take the lead role in completing the development and fmancing work required for this project. The Beard Group, Inc. has a strong redevelopment history. The Centerville Retail Business Redevelopment Project should be unique and not generic. Our vision for the Centerville redevelopment site is true to the Beard Group's development philosophy which does not use preset development formulas, but tailors services as the specific project demands. Redevelopment should be used to blend redevelopment areas with older existing or historical parts of a city creating a vibrant addition or uplift a district and thus it's surrounding community. In both cases the Beard Group, Inc. works with the surrounding neighborhood, larger community and city officials to bring the community's vision to fruition. Please feel free to contact us with any questions or comments. We can be reached at our general number of (952) 930-0630. Sincerely, The Beard Group, Inc. ~ p~ Development Principal paulg@beardgroupinc.com William H. Beard Development Principal billb@beardgroupinc.com ~ ~--r? ~~~I Ronald MeW ,/ Development Principal ronm@beardgroupinc.com Thomas Gump Development Principal tomg@beardgroupinc.com Copy: Dallas Larson, City Administrator 750 2nd Street NE, Suite 100 Hopkins, MN 55343 Phone: (952) 930-0630 Fax: (952) 930-0631 .RealEstate Development The Beard Group Inc. is a full service real estate development company specializing in redevelopment and mixed-use projects, Services include owner representation in aU areas of development: concept development, site acquisition, financial analysis, governmental approvals, construction, and project management Our Foundational Values Selecting a partner in realizing your vision for redevelopment can be a daunting task The Beard Group Inc, has been built on three foundational values: Community, Creativity and Integrity, These values guide our every effort in doing wen by our clients while assuring every client, partner and customer a professional and principled experience, We understand that your project isn't about property; it's about a dr am. With decades development behind us, The Beard Group Inc. understands the value property and we've mastered the intricacies oj bringing a to a Just as importantly. those decades have us that is the whue the a plays out Community A foundational value at The Beard Group Inc. is to invest itself as a stakeholder in the life and dreams of the community we serve. We invest our time. Forums, planning meetings, and discussions wifu committee members constitute our opportunity to understand the unique spirit and dreams of the community. Good listening has made us a recog~ nized specialist in Smart-Growth projects because true "Smart~Growth" demands insight and execution that goes beyond boiler-plate, quick turn, real estate development proposals. We invest our talent. Our unique-to-the-community, client driven approach means our experience represents a rich and diverse history of successful planning and execution. This experience includes numerous unique re/development initiatives as opposed to a handful of recycled ideas. As a community stakeholder, The Beard Group Inc. willingly shares its knowledge capital with our client in order to provide the most efficient and productive path to the project's becoming reality. We invest our future. Bill Beard and Paul Gamst, the founding and principal partners of The Beard Group Inc., know that having a physical presence in the community distinguishes true stakeholders from polite wen wishers. The Beard Group Inc. values, seeks and maintains municipally assisted ownership in their projects. The Beard Group Inc. currently owns and manages a portfolio of properties that represent over a million square feet of successfully repurposed and revitalized Smart-Growth properties. With do;:en; ry, The Beard value the ~ite5 in our hino- Ine understands the Ideas and we've marshaled a vision to earth has us that is resources in innovatiVe Creativity A foundational value at The Beard Group Inc. is a creative spirit and a dfsciplined drive to provfde our client innovation that advances tradition We promise creativity in our visioning. The inherent physical and financial constraints of responsible Smart-Growth project exerution do not rule out inspiration. Intuition and experience both tell us that the people that comprise the community want and expect spirited, uplifting architecture and environments. Places that meet or exceed expectations in form as well as function. and wqys in order to achieve results. The Beard Group Inc. will join its creative expertise with the unfolding community vision to conceive and present plans and proposals of dis- tinction. Our mission in visioning is to forecast places that attract the community to the best of the future while evoking of the best of the past. We join our creative expertise with the unfolding community vision to conceive and present plans and proposals of distinction. Our Resource Network Indudes: Planning Consultants - Fiscal Consultants - Mortgage Consultants - Environmental Experts - Traffic Engineers - Bankers - Architects - Planners/Designers - Home Builders - Contractors Creativity We promise creativity in our resource network. Decades of "doing" has introduced us to hundreds of exceptional talents in the multitude of dis- ciplines and trades needed to "do" a project. The Beard Group Inc. enjoys an extensive network of working relationships including financial experts general contractors, entrepreneurs and enterprises who share our values. The Beard Group Inc. will procure and manage the best possible team for your project. Our mission in networking is to structure teams that share the vision, have a commitment to quality, and look for creative ways to work smarter rather than longer. We promise creativity In our processes. A true community stakeholder understands that they are not the sole stakeholder. Everyone involved in project management at The Beard Group Inc. appreciates the personal and professional risks and demands associated with championing com- munity redevelopment. Beyond the legal and mandated necessities, The Beard Group Inc. will provide processes and systems that are formally and informally responsive to your needs. Our mission throughout the project is to be responsive to our client. We have the and review teams, The Beard Inc, understands the and the entire as/he ones words and deeds the same thing, Integrity can be but it is corned, Integrity A foundational value at The Beard Group Inc. is integrity: forth- rightly expressing what we commit to and then peiforming in accord with expectations. We promise integrity throughout the design phase. The process of crystal- lizing any development project includes a multitude of complexities and ambiguities that can lead to tragic misunderstandings. Misunderstandings too often lead to forced choices between a bad and worse case scenario. Experience has taught The Beard Group inc. to anticipate and manage these circumstances for our client's benefit. The Beard Group me. will facilitate and provide candid, forthright dialogue and communication to our client Our mission in communication is the honest expression of ideas and contingencies for the sake of responsible and disciplined decision making and long term "stakeholder" relationships. We promise integrity throughout the development phase. The quality of any development as well as the service that accomplishes it is tied to meeting or exceeding the client's criteria of success. The Beard Group Inc. recognizes that these criteria are not confined to the finished real estate. The criteria for a gratifying and well managed project include planned for, incremental milestones that indicate the health of the project and the necessity of plan revision. The Beard Group Inc. will provide accurate, timely and meaningful reports and updates for your project. Our mission in reporting is to provide each and every member of the planning/review teams relevant, valid and reliable indicators of the project's progress and set backs. Integrity We promise continuous and ongoing integrity as a community stakeholder. The status of stakeholder implies a solemn and long term obligation to the general well being and common good of the community. In addition to the individuals who comprise and represent The Beard Group Inc., we will seek out associates, lease customers and customer organizations that serve the honorable priorities of the client community without risk to the community's standards and institutions. As a stakeholder we desire products, services and business practices that showcase and model the goodness of the community. Our operational mission is to do good while doing wen. We do well by communities doing better. Paul Gamst and BW Partners, T he Beard lrc. c..:'\"jw~q', ;'H: ,; .. Ehlers & Associates, Inc. - Leaders in Public Finance Since 1955 />'<"<':::'~"":/" . 'Recent. ' Minnesota Bond Sales June,2006 through July, 2006 -Page 5 Medtronic Cardiac Rhythm Disease Management (CRDM) Corporate Campus Underway in Mounds View By Stacie Kvilvang, Ehlers Financial Advisor After an extensive public involvement/information process and whirlwind year of planning and State and local government approvals, Medtronic's new 1.5 million square-foot Corporate CRDM Campus is under construction in Mounds View. The corporate campus is currently under construc- tion on the site of the former City-owned Bridges Golf Course, at I-35W and State Highway 10. Medtronic, Inc., is the world's leading medical technology company, providing lifelong solutions for people with chronic disease. Its products include those for cardiac rhythm management, cardiac surgery, vascular, neurological, spinal, diabetes, and for ENT surgery. Medtronic first approached the City in mid-2004 with interest in locating their CRDM Corporate Campus to Mounds View. By the end of that year, they presented a preliminary term sheet to the Mounds View City Council. After review and consideration in early 2005, the City Council directed City staff to continue to proceed with further nego- tiations with Medtronic and to pursue a course of action consistent with potentially selling The Bridges for redevel- opment. Medtronic Site PlanlDescription . 1.5million square-foot campus . 6,000-plus employees . Average salary of $70,000 . 4,300 structured parking stalls . Total market value of $135 million . $24 million in State funds to allow County Road J and 1-35W Bridge to be reconstructed by 200~ (20 years ahead of schedule) The City-owned golf course encompassed an area of approximately 72.2 acres at State Highway 10 and I-35W. Medtronic became interested in this site because it was large enough to allow them to expand and combine multiple facilities, including several temporary locations, into a new cohesive, efficient and motivational campus environment for employees. In addition, it was not only centrally located, but located close to their corporate campus in Fridley, had great visibility and access, and was ideally situated in relation to existing and potential future employees. Making this project a reality was not a simple task. Medtronic wanted to begin development by the end of 2005. In order to do that, the City had to seek approval of two pieces of special legislation (special TIP legislation and removal of a reverter clause for land on which the golf course resided); obtain State bonding funds for required roadway/transportation improvements; relocate four billboards; create a TIP district; complete an AUAR; purchase, remove and relocate several businesses in Blaine; obtain all necessary planning and financing approvals; overcome legal challenges regarding the sale of The Bridges; and, provide utilities to the site. Medtronic Costs . $9,650,000 for acquisition of golf course land . $865,000 in parI< dedication fees . $660,000 in City administrative expenses including AUAR, legal, fiscal, engineering, etc. . $810,000 for relocation/buy-out of four billboards . $545,OOOto.Ci~utHity.fund . $390,000 to extend utilities to./he site . $355,OOO.to City road reconstruction f~f1d . $1.4 in permit fees & utility charges . $11 million to purchase land in Blaine required for parking Due to efforts by the City, County and Medtronic, the project ~~~. . Rendering :' ~ ~ :':'::':':;"""'iii (MEDTRONIC --"-~ w,,, continued on page 3) Ehlers Advisor . August 2006 City of Long Prairie Develops Industrial Park and Refinances Wastewater Treatment Plant The City of Long Prairie, Minnesota, has been busy with improvements, developing an industrial park in order to attract new and expanding businesses and constructing a new wastewater treatment plant. Over the years, the City assembled and purchased land to form its industrial park. The City is spending approximately $1.67 million on industrial park improvements with contributions of a $500,000 DEED Grant and a contribution of $250,000 from available tax increment funds. The City's net share of $895,000 is expected to be repaid from future land sales and assessments on the property which is currently owned by the City. In essence, the City is assessing itself for this project, and if the land does not sell as expected, the City will be required to levy taxes to pay for its assessments. This tax levy is not expected to increase the overall tax levy for debt as the City has a declining levy requirement for its existing debt. With continued efficient debt management, this program should not have an adverse impact on the overall tax burden of the residents. With the installation of the infrastructure improvements, the City will be able to market the lots with full utilities available. Ehlers assisted the City in the development of the fmancing program for this project. The City has recently constructed a wastewater treatment plant to replace its existing ponding system. The new plant was fmanced through a loan from the Minnesota Public Facilities Authority (PF A) and a grant and loan from Rural Development (RD). One of the conditions of the loan from the Minnesota Public Facilities Authority required the City to transfer a certain amount of revenue per gallon to a replacement fund. This fund can only be used to accumulate funds over the term of the loan so that the City would have "adequate funds available" to pay for a new plant or to construct major improvements to the plant at the end of the 25-year fmancing period. Thus, the City would not have to borrow to pay for these future costs. By Jerry Shannon, Ehlers Financial Advisor The Rural Development loan also required the City to maintain tracking records for every new hookup and report the data to Rural Development. The City was transferring about $45,000 per year into the replacement fund and incurring administrative costs of about $10,000 per year on the tracking information. With a recent adjustment to the user rates, the City had sufficient revenue to meet its operating expenses and to pay debt service on its 2.17 percent loan to Public Facilities Authority and its 4.50 percent loan to Rural Development. One of the City's major users has offered to purchase the City's old system in order to treat their own waste. This major industry represents approximately 30 percent of the City's Sewer Utility revenue. The City and Ehlers recomputed the 2005 income statements without this customer revenue and found the City would lose approximately $200,000 in net revenue and would not be able to pay for operations and debt service. Ehlers helped the City analyze its available funds in order to "buy down" the amount of debt outstanding so that a major rate increase would not be (continued on page 3) By Brian Reilly, Ehlers Financial Advisor Those of us in the U.S. have become accustomed to the gradual tightening of monetary policy over the past two years. The Federal Open Market Committee (FOMC) has raised the Federal Funds rate some 17 times, from 1 percent to 5.25 percent, since June of 2004. As was widely expected by the market, the FOMC took a pause from rate hikes at its August meeting. However, the third quarter has introduced us to a market environment that has not existed for quite some time. One in which the central banks of most the world's industrialized nations are working in unison to remove the accommodative (i.e. inflationary) monetary policies of the past few years. The Bank of Japan recently raised the overnight lending rate to .25 percent (from 0.00 percent), the European Central Bank has all but telegraphed its intent to increase .25 percent, and the Bank of China is even getting into the act by tightening reserve requirements among the country's financial institutions. The Central Banks of England, Australia and Canada have all undertaken quarter point increases to their respective 8.00% Bond Buyer Index, 1990 to Present -AUG. 4, 2006 discount rates in the past few months, as 7.50% well. There are a myriad of other examples, 7.00% but the point is clear: the environment for global growth is not as attractive as in the 6.50% recent past. 6.00% Throughout the second quarter, the primary 5.50% cause of concern seemed to be an inflationary 5.00% spiral due to the Fed not moving fast enough, in 4.50% :i~;o~n terms oftime and magnitude, on rate hikes. That 4.00% 4.18% on mentality appeared to turn on a dime, as 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 ~~/~5 _ evidenced by the Ten-year Treasury Note, which NOTE: The 80nd Buyer 20 Bond Index is a weekly index of average inleresl rates on lowest AA-raled municipal bonds maturing in 20 years. Source: The Bond Buyer. since 8/68 has retreated from a yield of 5.24 percent in mid-June to just under 5.00 percent. The entire Treasury curve from two to ten years is now trading below 5.00 percent. A general rule of thumb states that Treasuries do not usually trade below the Fed Funds rate (currently 5.25 percent) for any extended period of time unless the market envisions a rate cut in the next six to eight months. In fact, market participants are pricing in a greater probability of more rate cuts than increases through the end of 2007. It is clear that the interest rate market sees lower inflation and lower growth in the not-too-distant future. Growth will likely moderate over the coming months while the economy absorbs the increased costs of energy and general tightness in the labor markets. Those that are calling for a recession are likely getting ahead of themselves, as there would likely need to be a significant downturn in both capital investment and, primarily, consumer expenditures before such a scenario would occur. In the world of municipal issuers, increased rates at the short end have been tempered by a general supply/demand imbalance, which has kept borrowing costs relatively attractive. Highly rated issues with twenty-year repayment schedules are currently costing approximately 4.30 percent - 4.40 percent. This is a mere 30 basis points over the cost of one-year money and only about ten to fifteen basis points over comparable quality ten-year paper. As has been the case over the past three years, long-term fixed-rate financing remains very appealing. .2. Ehlers Advisor . August 2006 (continued from page 2) necessary to cover operations and debt service should the sale of the old facility become a reality. The City identified a balance of approximately $690,000 in restricted Sewer Utility funds, the receipt of approximately $279,000 from an earlier loan to the Airport Fund, and approximately $400,000 in the Sewer Fund which could be applied to a refmancing. The City issued $2,015,000 in Refunding Bonds which, together with the funds available, refunded $3,276,000 of outstanding debt. The bonds sold for a net effective rate of 4.55 percent, and the City's annual debt service requirement fell from approximately $235,000 to approximately $160,000 per year. In addition to being able to meet operating costs and debt service without a rate increase, the City will avoid a required transfer of approximately $45,000 per year into a restricted account. Should the sale of the old facility become a reality, the City plans to replenish the fund balance in the sewer utility. Medtronic in Mounds View (continued from page 1) received the needed bond funds from the State as part of the 2005 Bonding Bill and the Legislation was passed by the Minnesota Legislature and signed by the Governor on June 2,2005. OnJune 20, 2005, the City held the final public informational meeting, which was attended by more than 200 residents, business owners and interested persons, to present the terms for redevelopment of The Bridges Golf Course. OnJune 27, 2005, the City approved a development agreement with Medtronic and on August 22,2005, the City held a public hearing to approve establishing a TIF district in order to provide assistance to Medtronic to construct the facility as proposed. In November 2005, after all approvals and legal challenges were fmaIized, Medtronic approached the City to accelerate Phase II of the project and build it in conjunction with Phase I. Phase I was originally going to be 820,000 square feet and Phase II was going to be 320,000 square feet. The new combined Phase I is 1.2 million square feet with the fmal phase consisting of 300,000 square feet to be constructed in the next 5 to 10 years. On February 13, 2006, the City approved an amendment to the development agreement to allow the accelerated construction schedule. What is OPEB and What Can We Do About It? By Ehlers Financial Advisors Joel Sutter and Gary Kawlewski For years, many local governments have provided limited benefits to retired employees. These benefits are referred to in accounting standards as "other post- employment benefits" or OPEB. They usually include health insurance but may include other benefits (e.g., life, dental, vision, or disability insurance or termination benefits based on years of service). Until now, most local governments have financed these benefits on a "pay as you go basis," simply recording an expense when premiums or other payments come due. However, new accounting standards will dramatically change how these benefits are reported. These accounting changes may force some governments to reconsider the level of benefits paid and the methods of funding the benefits. The New Standards In 2004, the Government Accounting Standards Board (GASB) released Statements No. 43 and 45, which will require significant changes in accounting for OPEB. The new standards are based on the principle that these benefits are "compensation" earned during employment, and that the expense should be measured and recognized at that time. Similar standards have been applied to pension benefits for many years. These new standards apply to "defined benefit" plans but not to "defmed contribution" plans. GASB is giving local governments some time to implement the new standards, with the deadline based on the governments' total annual revenues in the first fiscal year ending after June 15, 1999. The table below shows the first year that governments must implement the standards; some may choose to implement earlier. Revenues in Base Year" Cities and Counties (year ending Dec. 31) 2007 2008 2009 School Districts (year ending June 30) 2008 2009 2010 $1 OOmillion or more $10 - $1 00 million Less than $10 million " Base year is calendar year 1999 for cities and counties and fiscal year 1999 for school districts. Implementation Steps Following are some basic steps local governments should follow in implementing the new standards. For more specific details, we urge you to contact your auditing firm and/or an actuarial firm that specializes in this field. 1. Assess which employment contracts and which benefits fall within the new standards. 2. Hire an actuary to do an actuarial analysis of your plans. The actuary will perform complex calculations according to the new standards, to determine your annual required contribution, actuarial accrued liability, net OPEB obligation, and other factors. Once the initial actuarial study is completed, it must be updated every two years (for employers with 200 or more plan members) or every three years (for smaller employers). For plans with fewer than 100 members, the standards allow employers to use simplified methods and assumptions. 3. Work with your accounting firm to add the required information to your balance sheet and the required notes to your fmancial statements. (OPEB continued on page 6) .3. Ehlers Advisor . August 2006 E' .""'~1lC: ,,\,,,:,::: '''', ,'If: t;'~'j'!i:ht;;~ a.:JEIfTSONTHE.OJlE Take a look at some of our clients lion the move" with new projects! The Byron School District recently completed construction of Byron High School, designed for up to 680 students in grades 9-12. The new school is part of a plan to relieve overcrowding in this growing district, located eight miles west of Rochester. The plan also includes conversion of the existing . high school to a middle school for grades 5- Byron High School 8, and conversion of the existing middle school to a community education center. Built for approximately $25.7 million, the high school includes 142,450 square feet of space and is located on an 80 acre site on the north edge of the City. District voters approved the school as part of a $27.6 million bond referendum in May 2004. The school will open in September of 2006, a full year ahead of the original schedule. The architect is Rozeboom Miller Architects of Minneapolis and the construction manager is Kraus-Anderson Construction of Circle Pines. Graphic courtesy of Kraus-Anderson and the Byron School District. The White Bear Lake School District is completing construction of Oneka Elementary School, designed for up to 750 students in grades K-5. Built for approximately $20.2 million, the school includes approximately 105,000 square-feet and is located in Hugo. The new school is part of a plan to accommodate growing enrollment in the northern portion of the school district. District voters approved the school as part of a $28.2 million bond referendum in November 2003. The plan also includes renovation of the existing elementary school in Hugo, once the new elementary school opens this fall. The architect is UIB of Minneapolis, and the construction manager is Kraus-Anderson Construction of Circle Pines. GraPhic courtesy of Kraus-Anderson and the White Bear Lake School District. Oneka Elementary School ~y: u ;',T erear . ,n(lisi;iJes:th~fdon't > .arerefUndedand rioe . Istrj(:fnotalways :caichth~seerro'rs; . 'efyyea: ' ,,: levy toomLJch ortoolittleJor debt service:. ithe'rtY'pe of error cahcreaie serious problems,' ',' "changesin1eviesfrom year toyeararidpot~~iial shortfalls offunds to make bond payments. . , To help our school district clients avoid sucherrors in future levies, Ehlers staff compared the levies from the MDE data bifse to our: ' " own records this summer. Where we found discrepancies, we contacted district and MDE staff to correct the errors. We also provided payment and levy schedules to MDE so that they could correct their data base for future years. Finally, we are verifying the calculation of "debt excess" adjustments to levies to ensure that any funds that need to be reserved for future payments are indeed reserved. In general, we have been very impressed with the accuracy of the data maintained by MDE; the levy amounts for over 95 percent of bond issues tied out exactly to our records. However, because of the large number of new bond issues and refundings done every year, some level of error is inevitable. This year we found errors in the levies for 10 districts. The errors ranged from $1,800 to $91,000. We still encourage our clients to independently verify their debt service levies. But if your district is an Ehlers client, you can rest assured that we are doing everything we can to verify the accuracy of your levy data. .4. Ehlers Advisor . August 2006 Sale Dale Issuer Name Amount Issue Name Due First Maturity Last Maturity Rate Rating 05-Jun-06 Monticello ISO No. 882 $3,780,000.00 GO MC'S, Series 2006A 2007 8/3/07 8/3/07 3.7471 NR 05-Jun-06 South Saint Paul $3,800,000.00 GO Capital Improvement Bonds, Series 2006A 2008-2027 211/08 211/27 4.2577 Aaa/XLCA 05-Jun-06 Belle Plaine $3,910,000.00 GO Improvement Bonds, Series 2006A 2008-2014 211/08 211/14 3.9152 AAAlMBIA 05-Jun-06 Crystal $1,855,000.00 GO Improvement Bonds, Series 2006A 2008-2022 211/08 211/22 4.1324 FSA 05-Jun-06 Shoreview $2,500,000.00 GO Street Reconstruction Bonds, Series 2006B 2008-2022 211/08 211/22 4.1191 05-Jun-06 Anoka $7,835,000.00 GO Tax Increment Bonds, Series 2006A 2011-2033 211/11 211/33 4.3226 Aaa/XLCA 05-Jun-06 Belle Plaine $5,650,000.00 GO Water Revenue Bonds, Series 2006B 2008-2027 211/08 211/27 4.1679 AAAlMBIA 05-Jun-06 Robbinsdale ISO No. 281 $13,200,000.00 GO Alternative Facility Bonds, Series 2006B 2008-2027 211/08 211/27 4.379 MBIA 06-Jun-06 Shakopee $3,440,000.00 GO Improvement Bodns 2008-2017 211/08 211/17 3.9438 FSA 12.Jun-06 Warroad ISO No. 690 $2,225,000.00 GO MC'S, Series 2006B 2007 8/3/07 8/3/07 3.7999 12-Jun-06 Northfield ISO No. 659 $2,100,000.00 GO Capital Facilities Bonds, Series 2006A 2008-2016 211/08 211/16 3.9352 12-Jun-06 Nicollet County $3,970,000.00 GO Capital Improvement Plan Bonds, Series 2006A 2008-2017 211/08 211/17 3.9819 XLCA 12-Jun-06 Nett Lake ISO No. 707 $303,000.00 GO School Building Bonds, Series 2006A 2008-2027 211/08 211/27 5.4991221 NR 12-Jun-06 Fosston $425,000.00 GO Sewer Rev Bonds, (Tax), Series 2006A 2015-2019 211/15 211/19 6.3513 15-Jun-06 Lindstrom $2,795,000.00 GO Sewer and Water Revenue Bonds, Series 2006A 2008-2027 211/08 211/27 4.3201 Aaa/XLCA 19-Jun-06 East Central ISO No. 2580 $1,185,000.00 GO MC'S, Series 2006A 2007 8/6/07 8/6/07 3.839 19-Jun-06 Sibley East ISO No. 2310 $1,660,000.00 GO MC'S, Series 2006A 2007 8/6/07 8/6/07 3.8326 NR 19-Jun-06 Morris ISO No. 769 $1,185,000.00 GO MC'S, Series 2006B 2007 8/6/07 8/6/07 3.839 19-Jun-06 Cologne $4,445,000.00 GO Bonds, Series 2006A 2011-2033 2/1/11 2/1/33 4.8115 19-Jun-06 Farmington $5,500,000.00 GO Improvement Bonds, Series 2006A 2008-2022 2/1/08 2/1/22 4.1956 Aaa/XLCA 19-Jun-06 Montevideo $625,000.00 GO Improvement Bonds, Series 2006A 2008-2017 2/1/08 2/1/17 4.3249 19-Jun-06 Hawley $655,000.00 GO Improvement Bonds, Series 2006A 2008-2022 2/1/08 2/1/22 4.641 19-Jun-06 Cologne $1,950,000.00 GO Utility Revenue Bonds, Series 2006B 2008-2027 2/1/08 2/1/27 4.7167 Baal 19-Jun-06 Northfield EOA $3,210,000.00 Public Project Revenue Bonds, Series 2006A 2007-2025 2/1/07 2/1/25 4.7751 A3 20-Jun-06 Minnewaska ISO No. 2149 $1,800,000.00 GO MC'S, Series 2006A 2007 8/6107 8/6/07 3.75 NR 20-Jun-06 Golden Valley $700,000.00 GO Equipment Certificates of Indebtedness, Series 20060 2008-2010 2/1/08 2/1/10 3.9623 20-Jun-06 Cloquet $2,135,000.00 GO Improvement Bonds, Series 2006A 2013-2022 2/1/13 2/1/22 4.481 20-Jun-06 Golden Valley $7,320,000.00 GO Improvement Bonds, Series 2006B 2012-2026 2/1/12 2/1/26 4.2927 MBIA 20-Jun-06 North St Paul $3,805,000.00 GO Utility Revenue Bonds, Series 2006A 2010-2027 2/1/10 2/1/27 4.3132 AMBAC 20-Jun-06 Eden Prairie $4,290,000.00 GO Capital Improvement Plan Bonds, Series 2006B 2008-2027 111/08 1/1/27 4.4669 20-Jun-06 Isanti $2,355,000.00 GO Improvement Bonds, Series 2006A 2008-2017 1/1108 1/1/17 4.2471 Aaa/AMBAC 20-Jun-06 New Ulm $3,000,000.00 GO Permanent Improvement Revolving Fund Bonds, Series 2006 2007-2016 12/1/07 12/1/16 4.1689 FSA 20-Jun-06 Golden Valley $1,945,000.00 GO Storm Sewer Revenue Utility Revenue Bonds, Series 2006C 2007-2021 2/1/07 2/1/21 4.2308 FSA 20-Jun-06 Robbinsdale $1,535,000.00 GO Street Reconstruction Bonds, Series 2006A 2008-2017 2/1/08 2/1/17 4.1995 20-Jun-06 Robbinsdale $3,700,000.00 GO Utility Revenue Bonds, Series 2006B 2008-2017 2/1/08 2/1/17 4.2378 Aaa/XLCA 20-Jun-06 Robbinsdale Economic Oev Authority $4,740,000.00 Housing Development Refunding Bonds, Series 2006A 2007-2031 2/1/07 2/1/31 4.4272 XLCA 21-Jun-06 Lake Crystal-Welicome ISO No. 2071 $2,410,000.00 GO MC'S, Series 2006A 2007 8/13/07 8/13/07 3.9147 21-Jun-06 Long Prairie $2,125,000.00 GO Improvement Bonds, Series 2006A 2008-2024 2/1/08 2/1/24 4.4672 Aaa/AMBAC 21-Jun-06 Long Prairie $2,015,000.00 GO Sewer Revenue Refunding Bonds, Series 2006B 2007-2025 2/1/07 2/1/25 4.5568 Aaa/AMBAC 26-Jun-06 Atwater-Cosmos-Grove City ISO No. 2396 $1,800,000.00 GO MC'S, Series 2006B 2007 8/10/07 8/10/07 4.0135 26-Jun-06 inver Grove Heights $1,450,000.00 GO Equipment Certificates, Series 2006B 2007-2011 2/1/07 2/1/11 4.1178 Aa3 26-Jun-06 Fridley $2,505,000.00 GO Improvement Bonds, Series 2006A 2008-2017 2/1/08 2/1/17 4.2267 Aa2 26-Jun-06 Inver Grove Heights $3,775,000.00 GO Improvement Bonds, Series 2006A 2009-2018 2/1/09 2/1/18 4.223 Aa3 26-Jun-06 Inver Grove Heights $4,725,000.00 GO Water Revenue Bonds, Series 2006C 2008-2022 2/1/08 2/1/22 4.3338 Aaa/AMBAC 26-Jun-06 Fairmont $3,500,000.00 GO improvement Bonds, Series 2006A 2008-2022 2/1/08 2/1/22 4.3058 XLCA 26-Jun-06 Lino Lakes $2,460,000.00 GO Tax Abatement Bonds, Series 2006C 2011-2023 2/1/11 211123 4.2754 26-Jun-06 Lino Lakes $570,000.00 GO Utility Revenue Bonds, Series 20060 2009-2017 2/1/09 2/1/17 4.1646 27-Jun-06 Luverne $1,500,000.00 GO Improvement Plan Bonds, Series 2006A 2008-2022 2/1/08 2/1/22 4.5116 27-Jun-06 New Brighton $20,730,000.00 GO Tax Increment Bonds, Series 2006A 2013-2032 2/1/13 2/1/32 4.7377 Aaa/MBIA 27-Jun-06 Scott County HRA $3,260,000.00 Housing Development Revenue Refunding Bonds, Series 2006A 2007-2027 2/1/07 2/1/27 4.5356 Aaa/XLCA 27-Jun-06 Scott County HRA $1,515,000.00 Limited Special Benefits Tax Refunding Bonds, Series 2006B 2007-2027 2/1/07 2/1/27 4.9085 27-Jun-06 Scott County HRA $1,245,000.00 Tax Increment Development Revenue Refunding Bonds, Series 2006E 2019-2024 211/19 211/24 4.7248 27-Jun-06 Scott County HRA $925,000.00 Taxable Tax Increment Development Revenue Refunding Bonds, Series 20060 2008-2018 2/1/08 2/1/18 6.1501 28-Jun-06 Prior Lake-Savage Area Schools ISO No. 719 $4,900,000.00 GO MC'S, Series 2006A 2007 8/13/07 8/13/07 4.0901 NR 28-Jun-06 Scott County HRA $3,455,000.00 Housing Development Revenue Refunding Bonds, Series 2006C 2007-2033 2/1/07 211133 4.7689 XLCA 10-Jul-06 Comm. of Iron Range Res. and Rehab. $15,145,000.00 Educational Facilities Revenue Bonds, Series 2006 2007-2021 10/1/07 10/1/21 4.4732 XLCA 10-Jul-06 Deer River iSO No. 317 $1,000,000.00 GO MC'S, Series 2006A 2007 8/27/07 8/27/07 4.1907 10-Jul-06 Laporte ISO No. 306 $880,000.00 GO MC'S, Series 2006A 2007 8/27/07 8/27/07 4.1612 NR 10-Jul-06 Brooklyn Center ISO No. 286 $3,700,000.00 GO MC'S, Series 2006C 2007 8/27/07 8/27/07 4.061 10-Jul-06 Elizabeth $73,000.00 GO Equipment Certificates, Series 2006A 2008-2016 2/1/08 2/1/16 4.43 10-Jul-06 East Grand forks ISO No. 595 $1,600,000.00 GO Aid Anticipation Certs of Indebtedness, Series 2006 2007 8/27/07 8/27/07 4.127 11-Jul-06 Lake Superior ISO No. 381 $5,000,000.00 GO MC'S, Series 2006B 2007 8/27/07 8/27/07 4.05 11-Jul-06 Dayton $500,000.00 GO Equip Certificates of Indebtedness, Series 2006B 2008-2013 2/1/08 2/1/13 4.2697 11-Jul-06 Le Center $3,710,000.00 GO Improvement Bonds, Series 2006A 2008-2028 2/1/08 2/1/28 4.622 XLCA 11-Jul-06 Dayton $9,495,000.00 GO Improvement Bonds, Series 2006A 2009-2028 2/1/09 2/1/28 4.296 Aaa/XLCA 12-Jul-06 Columbus Town of $1,800,000.00 GO Improvement Bonds, Series 2006A 2009-2022 2/1/09 2/1/22 4.3302 17-Jul-06 Park Rapids Area Schools ISO No. 309 $5,130,000.00 GO MC'S, Series 2006B 2007 917107 917107 4.0114 NR 17-Jul-06 Marshal/ISO No. 413 $2,500,000.00 GO MC'S, Series 2006B 2007 917107 917107 3.9895 NR 17-Jul-06 Pipestone $2,100,000.00 GO Water and Sewer Revenue Bonds, Series 2006A 2008-2022 2/1/08 2/1/22 4.5834 Baa2 17-Jul-06 Maple Grove $43,270,000.00 GO Improvement Bonds, Series 2006A 2008-2027 2/1/08 2/1/27 4.477 17-Jul-06 Moorhead $10,690,000.00 GO Improvement Bonds, Series 2006B 2009-2033 2/1/09 2/1/33 4.5608 XLCA 17-Jul-06 Maple Grove $2,265,000.00 GO Road Reconstruction Bonds, Series 2006B 2008-2027 2/1/08 2/1/27 4.5938 Aaa/fSA 18-Jul-06 Lake Of The Woods ISO No. 390 $1,365,000.00 GO MC'S, Series 2006A 2007 9/10/07 9/10/07 4.019 NR 18-Jul-06 Rocori Area Schools ISO No. 750 $1,000,000.00 GO MC'S, Series 2006B 2007 9/10/07 9/10/07 4.067 NR 20-Jul-06 Cold Spring $1,720,000.00 Gen Improvement Bonds, Series 2006A 2008-2017 2/1/08 2/1/17 4.2473 20-Jul-06 Jackson County Central ISO No. 2895 $1,700,000.00 GO MC'S, Series 2006B 2007 9/10/07 9/10/07 4.0201 NR 24-Jul-06 Belle Plaine ISO No. 716 $800,000.00 GO MC'S, Series 2006A 2007 9/10/07 9/10/07 3.9895 NR 24-Jul-06 Crosby-lronlon ISO No. 182 $1,000,000.00 GO MC'S, Series 2006A 2007 9/10/07 9/10/07 3.9895 NR 24-Jul-06 Blackduck $495,000.00 GO Bonds, Series 2006A 2008-2022 2/1/08 2/1/22 4.6333 NR 24-Jul-06 Sauk Rapids $905,000.00 GO Improvement Bonds, Series 2006A 2008-2017 2/1/08 2/1/17 4.2376 A2 24-Jul-06 North Branch $2,865,000.00 GO Tax Increment and Refunding Bonds, Series 2006B 2008-2026 2/1/08 2/1/26 4.3402 Aaa/fSA 25-Jul-06 New York Mills ISO No. 553 $1,535,000.00 GO MC'S, Series 2006A 2007 9/10/07 9/10/07 4.0375 NR 25-Jul-06 Eden Valley-Watkins ISO No. 463 $1,515,000.00 GO MC'S, Series 2006A 2007 9/10/07 9/10/07 4.0375 NR 25-Jul-06 Big Lake ISO No. 727 $2,000,000.00 GO MC'S, Series 2006B 2007 9/10/07 9110/07 4.0116 NR 26-Jul-06 Cass Lake-Bena ISO No. 115 $2,010,000.00 GO MC'S, Series 2006A 2007 9/10/07 9/10/07 3.9793 NR 26-Jul-06 Howard Lake-Waverly-Winsted ISO No. 2687 $1,450,000.00 GO MC'S, Series 2006B 2007 9/14/07 9/14/07 3.9821 NR 26-Jul-06 freeport $1,510,000.00 GO Improvement Bonds, Series 2006A 2013-2022 2/1113 2/1/22 4.6952 NR 26-Jul-06 Kasson $1,240,000.00 GO Temporary Improvemnet Bonds, Series 2006B 2009 2/1109 2/1/09 4.0379 27-Jul-06 Bird Island-Olivia-Lake Lillian ISO No. 2534 $960,000.00 GO MC'S, Series 2006A 2007 9/14/07 9/14/07 3.9987 NR 31-Jul-06 Glencoe-Silver Lake ISO No. 2859 $2,150,000.00 GO MC'S, Series 2006A 2007 9/21/07 9/21/07 3.9692 NR 31-Jul-06 Gem Lake $245,000.00 GO Improvement Bonds, Series 2006A 2008-2017 2/1/08 2/1/17 4.5839 .5. Ehlers Advisor . August 2006 OPEB costs and liabilities may have implications that will force some governmental units into other decisions. (continued from page 3) Implications The new accounting standards will not change the actual cost over time of OPEB, nor will they will require employers to change the benefits they provide or the ways those benefits are funded. They simply will require more accurate accounting of the real costs of the benefits and of the liabilities already incurred. For some local governments, the costs and liabilities may be relatively small. However, even if you directly pay nothing for OPEB benefits, you may have to report a liability due to a feature of the new standards called the "implicit rate subsidy." This is based on the idea that if retirees are allowed to continue in the employer's health insurance plan, even at their own expense, this will cause higher premiums. The standards require that this subsidy be measured and reported. For government units that provide relatively generous benefits for retirees, the OPEB costs and liabilities may be very large. Recent news reports have quoted officials from the City of Duluth, who report an unfunded liability of nearly $300 million for retiree health insurance and have warned of dire consequences if steps are not taken to reduce the liability. Bringing these costs and liabilities into clearer focus may have implications that will force some government units into other decisions. 1. The new accounting standards may bring to light serious long-term financial concerns that are not as obvious under current accounting practices. 2. Inclusion of the required information in the fmancial statements may encourage elected officials and their constituents to advocate for changes in benefits and funding options. 3. If the costs and liabilities are especially high, they could have an impact on a government unit's credit rating. Cost Reduction Strategies The new standards may speed efforts by local governments to reduce the long-term costs of OPEB. In many cases, such reductions will require changes in collective bargaining agreements. Some strategies for reducing costs may include: . reducing the portion of premium costs that the former employer pays for retiree insurance coverage; . eliminating post-employment coverage for newly hired employees; . making eligibility for coverage more restrictive; . transitioning coverage from defmed benefit plans to defmed contributions plans; and . reducing premium costs through consumer-driven health plans and other strategies. Ie I ~~~~~~,~ Ehlers & Associates is committed to designing outstanding financial solutions for outstanding communities Funding Strategies Once local governments have completed their actuarial studies and seen the size of their accrued liabilities and annual costs, they will also want to consider options for funding their OPEB obligations. Under current Minnesota law, options are quite limited. Local governments can set aside funds in a designated fund balance, but this will do little to change the long-term cost of OPEB or the impact on the balance sheet. In other states, however, other options have been used, including the following: . setting aside funds in an irrevocable trust (this may reduce the accrued liability by allowing a better discount rate in the actuarial valuation process); . investing the trust funds in higher yielding investments (e.g., stocks, mutual funds, or corporate-owned life insurance) that are not currently allowed for government funds; and . issuing taxable OPEB bonds to fund long-term liabilities. During the 2006 legislative session, several proposals were discussed to allow some of these options, but nothing was approved. There will certainly be more discussions about these options in coming sessions. Ehlers Role So far, Ehlers has had very little involvement with our clients in implementation of the new GASB standards. Like many of you, we are trying to increase our understanding of the standards and the implications they will have. As we move forward, however, Ehlers staff are exploring several ways in which we may be able to assist our clients with these new standards. 1. We are studying whether and how some of the funding options used in other states may be beneficial for local governments in Minnesota. 2. We intend to work with several professional organizations to provide input on legislative proposals for the 2007 session. 3. We plan to be in a position to help our clients evaluate funding options for their OPEB obligations and to help them determine what options will be in their best interests. 4. Finally, if the State allows the issuance of OPEB bonds, we will be ready to assist our clients by assessing the impact of various bonding options and facilitating the issuance of bonds. Roseville, MN Office: 3060 Centre Pointe Drive. Roseville, MN 55113-1105.651-697-8500 Brookfield, WI Office: 375 Bishops Way, Suite 225. Brookfield, WI 53005-6202 . 262-785-1520 Lisle, IL Office: 550 Warrenville Road, Suite 220 . lisle, IL 60532.630-271-3330 .6.