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2013-06-18 Council PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL AGENDA June 18, 2013 — 7:00 p.m. Mendota Heights City Hall 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Adopt Agenda 5. Consent Agenda a. Acknowledgement of June 4, 2013 City Council Minutes b. Acknowledgement of June 12, 2013 Airport Relations Commission Minutes c. Acknowledgement of June 11, 2013 Parks and Recreation Commission Minutes d. Approve Cancellation of July 2, 2013 City Council Meeting e. Approval of Out -of -State Travel Request for City Administrator f. Approval of Staff Reorganization Plan g. Approval of Resolution 2013 -39 Accepting Donations to Parks Celebration and 5K Race h. Approval of Personnel Action Report i. Approval of Massage Therapist Licenses j. Approval of Mendota Heights Par 3 Maintenance Contract k. Receipt of May Fire Department Synopsis Report I. Receipt of May Par 3 Report m Appointment of Interim Building Official n. Approval of Resolution 2013 -40 Approval of Plans and Specifications and Authorize Advertisement for Bids for Sanitary Sewer Rehabilitation /Lining Project o. Approval of Resolution 2013 -41 Accept Bids and Award Contract, 2013 Sanitary Sewer Cleaning and Televising Project p. Authorization to Provide Surveying and Geotechnical Services for Victoria Road and Rolling Green Neighborhood Improvements q. Approval of Claims List r. Acknowledge May 2013 Treasurer's Report s. Approval of Contractor List 6. Public Comments 7. Presentations a. 2012 Audit Review - Kern, Dewenter, Viere. Ltd. 8. Public Hearings a. Resolution 2013 -42 Vacation of 2nd Avenue Alleyway Right -of -Way 9. New and Unfinished Business a. Ordinance 452 Amending Title 3, Chapter 2, Tobacco Sales b. Resolution 2013 -43 Award Bid for Highway 110 / Dodd Road Intersection Improvements 10. Community Announcements 11. Council Comments 12. Adjourn CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, June 4, 2013 page 2 5a. Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Krebsbach called the meeting to order at 7:00 p.m. The following members were present: Councilmembers Duggan, Povolny, Petschel, and Norton. PLEDGE OF ALLEGIANCE Council, the audience, and staff recited the Pledge of Allegiance. AGENDA ADOPTION Mayor Krebsbach presented the agenda for adoption. Councilmember Duggan moved adoption of the agenda. Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and approval. Councilmember Duggan moved approval of the consent calendar as presented and authorization for execution of any necessary documents contained therein, pulling items C) Approval of Personnel Action Report, D) Accept Resignation of Assistant to the City Administrator Jake Sedlacek, E) Call for Public Hearing, 2nd Avenue Right -of -Way / Alley Vacation, F) Approval of Computer Network Backup Purchase, and H) Approval of Service Agreement with Dakota County for One -Stop Right -of -Way and Rolling Green Neighborhood Improvements. a. Acknowledgement of May 21, 2013 City Council Minutes b. Acknowledgement of May 28, 2013 Planning Commission Minutes c. Approval of Personnel Action Report d. Accept Resignation of Assistant to the City Administrator Jake Sedlacek e. Call for Public Hearing, 2nd Avenue Right -of -Way / Alley Vacation f Approval of Computer Network Backup Purchase g. Approve Resolution 2013 -37 Order Feasibility Report for Victoria Road and Rolling Green Neighborhood Improvements h. Approval of Service Agreement with Dakota County for One -Stop Right -of -Way Permitting System i. Approval of Mendakota Playground Refurbishment j. Receipt of May 2013 Building Activity Report page 3 k. Approval of Contractor List 1. Approval of Claims List m. Approve Out of State Travel Request for Police Department Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 PULLED CONSENT AGENDA ITEMS C) APPROVAL OF PERSONNEL ACTION REPORT Councilmember Duggan asked if it had been determined who would be giving the update on the Par 3 and who would be supervising after the resignation of Assistant to the City Administrator Jake Sedlacek. City Administrator Justin Miller replied that the first report from the Par 3 would be given at the next Council meeting. In terms of organization and oversight, that would also be brought to the Council at their next meeting. Councilmember Duggan moved to adopt the Personnel Action Report. Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 D) ACCEPT RESIGNATION OF ASSISTANT TO THE CITY ADMINISTRATOR JAKE SEDLACEK Councilmember Petschel expressed her regard for Mr. Sedlacek by stating that he has been one of the nicest individuals that she has ever worked with and that Clean -up Day would never be the same without him. Mayor Krebsbach echoed Councilmember Petschel's sentiments and added that he has done an outstanding job for the city. Councilmember Povolny expressed his appreciation of Mr. Sedlacek who has worked for the City for six and one half years. Councilmember Duggan stated that he was part of the hiring team and he has had no regrets. He added that Mr. Sedlacek has been an asset to the City and is highly respected in the community. Councilmember Norton moved, with regret, to accept the resignation of Assistant to the City Administrator Jake Sedlacek. Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 page 4 E) CALL FOR PUBLIC HEARING, 2ND AVENUE RIGHT -OF -WAY / ALLEY VACATION Councilmember Duggan asked if the homeowners would be notified in relation to the vacation. City Engineer John Mazzitello replied that this was the second notification to this neighborhood. The right - of -way would be split in half and would be given to each adjacent property owner. One comment has been received in support of the vacation. Once approved by Council, a public hearing would be called for at the June 18, 2013 City Council Meeting and all of the affected residents would be notified. Councilmember Duggan moved to accept the Call for Public Hearing, 2nd Avenue Right -of -Way / Alley Vacation. Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 F) APPROVAL OF COMPUTER NETWORK BACKUP PURCHASE Councilmember Duggan stated that when he added the dollar costs for the hardware, equipment, and software he received a slightly different number than the report shows in the Council packet. Mayor Krebsbach noted the difference and directed staff to double check the figures. Councilmember Povolny moved for the approval of the Computer Network Backup Purchase with the correction. Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 H) APPROVAL OF SERVICE AGREEMENT WITH DAKOTA COUNTY FOR ONE -STOP RIGHT -OF -WAY PERMITTING SYSTEM Councilmember Duggan noted his concerns and questioned the information in the document referring to payments. City Engineer John Mazzitello referred to Exhibit C of the agreement, Permit System Fee Calculations, which outlines the number of permits over the past three years. Based on this information, Mendota Heights' percentage of the monthly charge would be very small. Mayor Krebsbach asked what affect this agreement would have on the Building Activity Report in terms of fees collected. Mazzitello replied that joining this program would not alter the fees collected for building permits. This is a convenience measure for applicants so they only have to go to one place to get a right -of -way permit that could span multiple city jurisdictions within the county. Mayor Krebsbach asked if there would be any adverse effects in terms of the way the city would develop compared to any of the other cities in Dakota County. Mazzitello replied that there would be no impact to the way Mendota Heights does business. page 5 She then asked how would staff and the City would know what permits have been applied for. Mazzitello answered that the applicants would apply through the Dakota County system and it would be sent to the various cities for review and approval before the County would issue the permit. Councilmember Norton asked if the additional costs to the City to participate would be passed on to the applicant. Mazzitello replied that the City has already adjusted its right -of -way fees anticipating covering the initiation fee and the annual fee. Councilmember Duggan asked, since the document states the County's liability limitations, if there were any waiver of City liabilities. City Attorney Tami Diehm stated that there is a standard protection for the City that states there would be no liability for consequential or indirect damages. Since the County would be administering this program, the City would not have a lot of risk. Councilmember Duggan asked if there would be any additional annual fees for the City. Mazzitello replied that the annual fee is anticipated at $475 but this would be adjusted based on the number of right -of -way permits applied for within the City's jurisdiction. Mayor Krebsbach asked for clarification on the termination of this agreement. Mazzitello stated the City would be able to opt out of the agreement with ninety days notice. Councilmember Duggan stated he sees this agreement as a form of taxation and he would not be in support of it. Councilmember Petschel stated that she believes this would be a benefit for the people who are required to obtain permits to work in the City or multiple permits to work over a larger area in Dakota County. Mayor Krebsbach asked who would actually be administering this program. Mazzitello replied that Dakota County would be administering the program. Councilmember Norton moved approval of Service Agreement with Dakota County for One -Stop Right - of -Way Permitting System. Councilmember Petschel seconded the motion. Ayes: 4 Nays: 1 (Duggan) PUBLIC COMMENTS Mr. Scott Butwin, 1101 Sylvandale, commented on the need for having and enforcing a sound ordinance; especially for outside equipment. Mr. Butwin stated that the national standard is 45 decibels at night and 55 decibels during the day and he suggested the City Council adopt this standard. Mayor Krebsbach explained that the Council listens to comments and suggestions made by the public but does not take any formal actions during the meeting. page 6 PRESENTATIONS A) PRESCRIPTION DRUG DROP -OFF, DAKOTA COUNTY SHERIFF'S OFFICE Chief of Police Michael Aschenbrener introduced Chief Deputy of Dakota County Tim Leslie. Chief Deputy Tim Leslie stated that the County has been working on the Prescription Drug Drop -Off program since 2011 and that it is now available for residents of Mendota Heights. The drop off site is located in the basement of City Hall and is open 24 hours per day / 7 days per week. Residents can stop in and drop off unused or misused prescription drugs, no questions asked, to be destroyed by law enforcement. Councilmember Duggan asked if the program accepts syringes. Leslie replied that syringes are accepted but the drugs are removed from the syringes before being placed in the incinerator. The syringes are disposed of separately. Councilmember Petschel mentioned the environmental impact of flushing leftover prescription drugs down the toilet. B) UPDATE ON MENDOTA- LEBANON HILLS GREENWAYS MASTER PLAN Assistant to the City Administrator Jake Sedlacek gave a brief presentation on the Greenways Master Plan by stating that Dakota County has been in the process of developing greenways with the idea of connecting communities, finding alternative ways for transportation, and then connecting natural and historic resources throughout the County. The greenway plan is a comprehensive plan that makes suggestions on where a trail may be located. The County is currently studying the Mendota - Lebanon Hills greenway, which starts at the intersection of Dodd Road and Highway 110 and then moves south through Mendota Heights, Inver Grove Heights, and Eagan; terminating at the Lebanon Hills Regional Park. Of the 8.5 miles of trail, the part that would be of most interest to Mendota Heights starts at Mendota Plaza. Dakota County is hoping to do a grade separated crossing from the North Urban Regional Trail, travel through the Mendota Plaza development in an easement area, and then move south. They are proposing to use an existing trail for part of the trail and then use CDA owned property; known formally as the Dodd right -of -way, or construct a floating boardwalk through Friendly Marsh Park that would connect up on Huber Drive (this is their preferred option), taking advantage of an existing eight foot wide bituminous trail Dakota County is hoping to have the plan adopted by the County Board by late summer 2013. Councilmember Petschel expressed her desire to have the City involved early in the decision on the options prior to any rendering on any maps or discussions by the County on their preferred plan. She stated she would not wish to have the floating boardwalk through the marsh because of the pylons that would need to be installed, the pipeline that is already going through there, and other issues; especially since there is another easier and more economical option. Councilmember Povolny agreed wholeheartedly with Councilmember Petschel's comments. page 7 Councilmember Norton stated that he would be in support of having a letter written to Dakota County stating that the preferred alternative from the City would be through Decorah and Aztec Lane. Mr. Bruce Vatne, 2205 Bent Tree Lane, explained that he has the same concerns as Council in regards to the wetlands. He loves his property because of the enjoyment he receives from the wildlife and would not like to see that disturbed. He also had concerns about who would maintain and police the trail if one were to be put in. Mayor Krebsbach noted that she received a call from a resident that attended the Lakeville meeting. His concern was about a ten foot trail along Huber and Mendota Heights Road. Mayor Krebsbach stated that one of her main concerns is allowing bicycles on the same trail as pedestrians. Councilmember Duggan moved that the Council recommend to the Dakota County Planning staff that, should they wish to continue this process, they go south into the CDA owned property; known formally as the Dodd right -of -way, through Decorah; that this Council does not support a boardwalk through the marsh, the primary reasons being destruction of wetlands, loss of habitat, incompatibility with the neighborhood, and prohibitive costs associated with that; and Council has concerns about the increased bicycle traffic on the same trails as pedestrians. Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 PUBLIC HEARINGS A) RESOLUTION 2013 -38 LEXINGTON HEIGHTS APARTMENTS CONDUIT BOND REFINANCING Finance Director Kristen Schabacker explained this public hearing was for the issuance of revenue refunding bonds for the Lexington Heights Apartments. These bonds are conduit financing and are a pass through for the city. They are not an obligation of the city. Representatives from Lexington Heights Apartments were present to answer any questions from the Council. Mayor Krebsbach asked for the amount of the bonds. Schabacker replied that the amount is not to exceed $10,570,000 and does not affect the ability of the City to bond. Councilmember Petschel asked if the service fee would cover all expenses the City would incur in working on this refunding. Schabacker replied in the affirmative. The representatives from Lexington Heights Apartments were Mr. Jim Riley, a member of the family that owns Lexington Heights Apartments; and Mr. Dan Nelson of Best & Flanagan and in partnership as owner. Councilmember Petschel moved to close the public hearing. Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 page 8 Councilmember Duggan moved to adopt RESOLUTION 2013 -38, RESOLUTION APPROVING ISSUANCE AND SALE OF MULTIFAMILY HOUSING REVENUE REFUNDING BONDS (LEXINGTON HEIGHTS APARTMENTS PROJECT) SERIES 2013 PURSUANT TO THE MINNESOTA STATUES, CHAPTER 462C. Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 B) RENEWAL OF WINE AND INTOXICATING LIQUOR LICENSES City Clerk Lorri Smith explained that this is a public hearing on the renewal of the intoxicating liquor and wine licenses; with a total of ten licenses in the City, as follows: Intoxicating Liquor and Sunday Liquor licenses • Felipe's LLC dba Teresa's Mexican Restaurant, 762 Highway 110 • Haiku Japanese Bistro Inc. dba Haiku Japanese Bistro, 754 Highway 110 • Courtyard Management Corp. dba Courtyard by Marriott, 1352 Northland Drive Club Liquor and Sunday Liquor licenses • Mendakota Country Club, 2075 Mendakota Drive • Somerset Country Club, 1416 Dodd Road Wine licenses • Mendo Restaurant Group, Inc., dba Mendoberri located at 730 Main Street • Windy City Pizza LLC dba Tommy Chicago's Pizzeria located at 730 Main Street • CEC Food and Beverage LLC, dba LeCordon Bleu, 1315 Mendota Heights Road Off -Sale Liquor licenses • MapleTree Mendota Retail LLC dba The Wine Market, Suite 101, 720 Main Street • Poopha Inc. dba Mendota Liquor, 766 Highway 110 Most of the documentation had been received with two liquor bonds still outstanding; Felipe's LLC dba Teresa's Mexican Restaurant, 762 Highway 110 and Mendo Restaurant Group, Inc., dba Mendoberri located at 730 Main Street. The police department conducted background investigations and found no negative findings on the licenses and there have been no liquor law violations within the past year. These licenses would be effective July 1, 2013 through June 30, 2014. Councilmember Duggan moved to close the public hearing. Councilmember Povolny seconded the motion. Ayes: 5 Nays: 0 Councilmember Duggan noted that Par 3 sells beer and asked it if was exempt. Clerk Smith replied that they sell 3.2% malt liquor, which is in a different category. page 9 Councilmember Povolny moved to approve the issuance of the license renewals as listed for the period of July 1, 2013 through June 30, 2014, contingent upon receipt of the outstanding liquor bonds for Teresa's Mexican Restaurant and Mendoberri. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 UNFINISHED AND NEW BUSINESS A) ORDINANCE 453 AMENDING CITY CODE REGARDING SIGNS, AND APPROVE SUMMARY PUBLICATION Assistant to the City Administrator Jake Sedlacek explained that this topic was originally brought up in late 2012. With Council permission, staff went through the City Code pertaining to signs and provided the drafted language as an update. Sedlacek reviewed the proposed changes to the ordinance. Mayor Krebsbach asked why the building permitting is incorporated in the sign ordinance. City Administrator Justin Miller reminded the Council that the current code requires that any exterior renovation to a building in the commercial or industrial district come to the City Council for approval, whether or not it meets every other requirement of the City Code. This amendment would change that; this would not require those permits to come before the City Council any more. Mayor Krebsbach replied that for that piece she would not approve this. Councilmember Petschel stated that this was drawn up in response to a request from Council; Council was putting unnecessary delays on homeowners and businesses. She explained that she had no problem supporting this as it was specifically being done in response to a goal the Council set; streamlining the permitting process. Councilmember Norton agreed with Councilmember Petschel. Councilmember Duggan raised his concern about the setback proposed for signs being ten feet. Sedlacek explained that the ten foot setback was chosen as the most common sign distance that exists today. It is also important to note that this would be the setback from the lot line, not from the curb. Councilmember Duggan questioned the need for calling out that feather flag signs are not permitted; and questioned why they would not be allowed. Sedlacek replied that these types of signs, since they are not permanent, have not been permitted in the past. This would eliminate any confusion on whether or not a feather flag is permissible. Councilmember Duggan explained his reasons for allowing feather flag signs. He would have liked to see an exception included that one feather sign per business be permissible. Councilmember Povolny asked if there was anything in the ordinance to prohibit persons standing on the corner waving a sign. City Administrator Miller stated that if the person is in the right -of -way, then it would be permitted. Mayor Krebsbach asked for confirmation that the inflatable waving in the wind sign sock is not permitted. The reply was that this language already exists in the code. page 10 Councilmember Duggan pointed out some grammatical edits that should be made. He also questioned the wording pertaining to illumination beyond a lot line. Councilmember Petschel moved to adopt ORDINANCE 453 AMENDING TITLE 12, CHAPTER 1 OF THE CITY CODE PERTAINING TO SIGNS with the noted changes; Section 3, J. 4. a) the word `may' will be deleted; and Section 3.J.6. the appropriate word will be found to substitute for the second 'illuminate'. Councilmember Povolny seconded the motion. Ayes: 4 Nays: 1 (Kreb sbach) Councilmember Duggan moved to approve the SUMMARY PUBLICATION OF ORDINANCE 453, for publication purposes. Councilmember Povolny seconded the motion. Ayes: 5 Nays: 0 B) ORDINANCE 454 AMENDING CITY CODE REGARDING GARAGES, AND APPROVE SUMMARY PUBLICATION Assistant to the City Administrator Jake Sedlacek explained that this ordinance amendment is to allow two garages on residential properties. The City has only allowed one garage, be it attached or detached. The proposed code would allow for two garages. Depending on the outcome of that discussion, staff would propose a number of changes if two garages are allowed: • To allow only two accessory structures as opposed to three • Sizes on garages, the way they are measured is proposed to be changed The other policy question is the matter of garage doors. This proposed amendment would provide for thirty-six linear feet of doors permitted and would allow someone to construct either two double doors or four single doors; trying to match with the character of their home as they see fit. The City previously allowed up to four doors if a garage was twelve hundred feet or less. Two years ago the City limited it to three doors maximum. Mayor Krebsbach asked if there is a lot size minimum for two garages. Sedlacek replied that the proposed language would allow an additional garage on any property that has the room for it. That would require the setbacks of ten feet from side and rear lot lines, and ten feet from the principal structure. It would require a Conditional Use Permit to get a second garage over 650 square feet in size. The size of the second garage would be limited by the area of the backyard or the footprint of the house, whichever is smaller. In no case could the second garage exceed fifteen hundred square feet. Mayor Krebsbach asked if the code includes anything about space on either side of the driveway. Sedlacek answered that for access to the driveway the current setbacks would apply. A driveway is allowed no closer to the lot line than five feet, it is allowed to be up against the principal structure or, in this case, a separate garage. page 11 Mayor Krebsbach asked if there would still be a thirty foot setback from the rear lot line. Sedlacek replied that a detached garage could be up to ten feet from the rear lot line and an attached garage would have the same setback as a principal structure, which would be thirty feet. Councilmember Povolny asked if the detached garage has to be architecturally the same as the house. Sedlacek replied that the language the Planning Commission settled on is that accessory structures shall be compatible with the principal structure, which does leave a little room for artistic interpretation. Councilmember Povolny recommended the language be changed to exactly, not compatible. Mayor Kreb sbach supported Councilmember Povolny' s request. Councilmember Norton stated that anything that opens the Council to interpretation of whether something would be architecturally compatible with the principal structure would potentially open the Council up to litigation. Councilmember Duggan expressed a concern if a house is ten years old and the stucco is weathered, to get a new garage to match exactly with the weathered home would be a challenge. City Attorney Tami Diehm stated that the phrase "architecturally compatible" is a commonly used phrase. She believed that what Councilmember Povolny meant was the finishing materials. Maybe staff could include some additional language that says the finishing materials, including siding and shingles, that are used on the garage shall be identical to those used on the principal structure. Councilmember Povolny stated that this is what he was trying to say. Councilmember Norton clarified what he heard is that the phrase "architecturally compatible" would be the style of the house, so Council would still want the "architecturally compatible" with the house in the code; but also add the finish materials language. Attorney Diehm agreed and stated that the phrase "including, but not limited to, siding and shingles" so that would leave that open for stucco. City Attorney Diehm proposed that this language be included in Section 1C. Councilmember Duggan asked if the Council was permitting two garages. The reply was in the affirmative. He then asked if a resident also wants an accessory structure in addition to the two garages, how that request would be handled. Sedlacek replied that this is proposed to be structured similar to the current code where it is size dependent. If a resident has a lot of four acres or less they would be allowed that one detached structure, which could be a garage or an accessory shed of some sort. If the lot is over four acres then they would be allowed two structures. Mayor Krebsbach suggested that Council go into a workshop session before their next meeting to continue this discussion to be totally comfortable with what is in the ordinance. Councilmember Duggan moved to table this discussion to the next Council meeting to obtain more clarification on the issues that have been raised. Councilmember Norton seconded the motion. Ayes: 5 Nays: 0 page 12 COMMUNITY ANNOUNCEMENTS Assistant to the City Administrator Jake Sedlacek listed the following events: • Mendota Heights 5K Run/Walk benefiting Special Olympics took place the previous weekend with 463 participants • The Parks Celebration had a great turnout and good weather • The Summer Playground programs are starting up on June 10 • June 12th is the next Performance in the Park, and then they will take place on Thursday evenings throughout the summer at the Market Square Park • The Cliff Timm Fishing Derby is June 20 • The Puppet Wagon is starting on Mondays around lunch time in Market Square Park Mayor Krebsbach stated that this is the last night of service to the City for the firm of Winthrop and Weinstein. Counting the time that the City was served by Sherman Winthrop and Bob Weinstein, that tenure stretches over 50 years. Over these years, the attorneys at Winthrop and Weinstein have helped the City grow into the prosperous and well respected City that we all enjoy today. Attorneys from Winthrop and Weinstein, who have served as Mendota Heights City Attorney include: Bob Weinstein, City Prosecutor through the 1960s Sherman Winthrop, late 1950 to mid -1980 Tom Hart, mid -1980 to 2000 Dan Schleck, 2000 to 2005 Tami Diehm, 2005 to present The firm is now seeking to move on from municipal representation but we know that Winthrop and Weinstein will always be part of Mendota Heights and their legacy will be one that the City benefits from for many years to come. Mayor Krebsbach presented Tami Diehm with a Certificate of Appreciation. COUNCIL COMMENTS Mayor Krebsbach stated that the Council will hold a Council Workshop session at 6:00 p.m. on Tuesday, June 18, before the regularly scheduled City Council Meeting. Councilmember Norton commended everyone, especially Sergeant Garlock, for the outstanding events that took place this past weekend; as well as Sloan Wallgren, knowing it was his first foray into the Mendota Heights Parks Celebration. Councilmember Petschel echoed Councilmember Norton's comments. Councilmember Povolny stated that he had fun, participated in the 5K, attended the Park Celebration, and watched quite a bit of baseball. page 13 ADJOURN Councilmember Petschel moved to adjourn. Councilmember Povolny seconded the motion. Ayes: 5 Nays: 0 Mayor Krebsbach adjourned the meeting at 8:58 p.m. Sandra Krebsbach Mayor ATTEST: Lorri Smith City Clerk CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA AIRPORT RELATIONS COMMISSION MINUTES June 12, 2013 page 14 5b. The regular meeting of the Mendota Heights Airport Relations Commission was held on Wednesday, June 12, 2013 at 7:00 p.m. at 1101 Victoria Curve, Mendota Heights, MN. The following commissioners were present: David Sloan, Kevin Byrnes, Jim Neuharth, Sally Lorberbaum, William Dunn, Gina Norling and Paul Portz Absent: None Also present: City Administrator Justin Miller Approval of Minutes Lorberbaum made a motion, seconded by Neuharth, to approve the April 10th minutes as submitted - all voted in favor. Mendota Heights /Eagan /Inver Grove Heights Joint Meeting Recap The commission reviewed the joint meeting that was held with Eagan and Inver Grove Heights on May 8th The commission agreed that holding these joint meetings was worthwhile but could possibly be held every two years, unless a pressing issue came about. The commission also discussed the merit of inviting other NOC communities to the joint meetings, but it was agreed that the common issues of Eagan, Mendota Heights and Inver Grove Heights were enough to keep the format the same. Building Permit New Construction Disclaimer Miller indicated that recent residential tear -downs (that possibly had noise abatement measures paid for) have caused some to wonder about whether the new construction would someday be eligible for mitigation efforts if the noise contours change The MAC's position is that any construction after October 20, 2007 is not eligible for noise mitigation programs. The idea about a disclaimer being placed on building permits was suggested, and the commission agreed that staff should find some way to place disclaimer language on the building permit applications. Acknowledge Receipt of Various Reports /Correspondence The monthly reports for April 2013 were acknowledged and commissioners updated their respective areas of focus. Neuharth suggested that the commission monitor the departure data of off runway 12R as it has been trending upwards for several months now. Norling invited the commission to meet at her house for their July meeting, which the commission agreed to. Miller indicated that more details will be sent out as the meeting approaches. Adiourn Neuharth made a motion, seconded by Norling, that the meeting be adjourned. All voted in favor. Meeting adjourned at 7:50 pm. page 15 5c. CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA PARKS AND RECREATION MEETING June 11, 2013 The June meeting of the Mendota Heights Parks and Recreation Commission was held on Tuesday, June 11, 2013 at Mendota Heights City Hall, 1101 Victoria Curve. Chair Levine called to order the parks and recreation commission meeting at 6:31 p.m. The following commissioners were present: Chair Stephanie Levine, Commissioners Mary McGrory - Ussett, Ira Kipp, Joel Paper, David Miller, Pat Hinderscheid and Michael Toth. Staff present: Recreation Program Coordinator Sloan Wallgren, City Engineer /Public Works Director John Mazzitello and Assistant to the City Administrator Jake Sedlacek. Ivy Hills Park Clean Up The commission thanked Noah and Sam Farber for cleaning up the area around the pond at Ivy Hills Park. The youth had coordinated the cleanup as a fundraiser for the newly formed Henry Sibley Ping Pong Club. The commission hopes that staff may be able to provide notice of upcoming clean up events, so they may thank volunteers and /or help out. Approval of Minutes of May 14, 2013 A minor correction to the minutes was noted, changing the first sentence of the minutes to say "the May meeting..." Commissioner Hinderscheid made a motion to approve minutes of the May 14, 2013 meeting; commissioner McGrory -Ussett seconded the motion. Ayes 7: Nays 0 Recreation Programming Update Recreation Program Coordinator Sloan Wallgren noted that this is the biggest week of the year for recreation programs. Tennis, playgrounds, field trips and golf programs all started June 10, 2013. Most programs are filled and total revenues are up, even though some registration fees were reduced. Mr. Sedlacek responded to a question about recreation program revenues, stating that programs are intended to pay for themselves, and that the staff time (.5 FTE) for the recreation program coordinator is paid for out of the general fund. If recreation programs create additional revenue, that amount would offset the amount drawn from the general fund for staff salary. Recognizing Parks Celebration Donors Mr. Wallgren identified businesses that contributed cash or prizes to the parks celebration. Donors were also recognized in the Southwest Review, and will be recognized in a formal resolution to be presented to the City Council. The commission asked that donors also be recognized in the next edition of the Heights Highlights. Mr. Wallgren was recognized by the commission for putting together a great Parks Celebration event. page 16 Trail Improvement and Maintenance Plan Mr. Sedlacek noted that City Engineer /Public Works Director John Mazzitello was in attendance to answer questions and accept feedback on the Trail Improvement and Maintenance Plan (TIMP) originally presented to the commission in December, 2012. The commission had no specific comment on the plan itself, but provided staff with feedback on areas that were in need of maintenance Mr. Mazzitello noted that most trails in Mendota Heights are in the 20 -25 year age range, and will be due for maintenance soon. The TIMP has been drafted to help manage the maintenance for all trails. The public is welcome to provide input on trails at any time. Citizens may contact Mr. Mazzitello directly, or email cityhall !, mendota- heights.com. Chair Levine asked for an update on the status of the portion Valley Park Trail which is currently unpaved. Mr. Mazzitello stated that a contractor has been selected to complete the installation of pavement, which had been scheduled for late last week. The rainy spring weather has created a challenge, as the existing base for the trail is still wet. Mr. Mazzitello, Mr. Sedlacek and Commissioner Toth all attested that a trail installed over a wet base is more likely to fail than one installed on a dry base. The cool temperatures, significant shade trees and frequent rains have delayed the project. If there are three warm days without rain, the base should be ready to pave. Mendota - Lebanon Greenway Open House Update Mr. Sedlacek updated the commission on the open houses, and comments provided by Mendota Heights residents who did attend the open houses. Capital Improvements Planning The commission identified criteria for evaluating capital improvements at the May 2013 meeting. At this meeting, the commission also proposed new concepts for further consideration. Staff noted that a Sun Shade for Hagstrom King Park was ruled out, in favor of "spading -in" larger diameter trees. The commission confirmed this change Staff will look into this activity for this year or 2014. The city is still awaiting further detail from the Mendota Heights Athletic Association on their proposed improvements to the ball field at Victoria Highlands Park. The commission expressed their hope to have further detail as soon as possible. Staff agreed. Four projects were identified for further study: Rogers Lake Swimming Beach, Splash Pad, Victoria Highlands Park and Warming House Repairs /Improvements. The commission expressed interest in making a blank request for funding for a project in 2014, while they continue to research and discuss new park amenities. Par 3 Update Mr. Wallgren reviewed the Par 3 update. Youth programs have started, and the course is teaming with kids in mornings and afternoons. Registrations to date are strong compared to last year, which staff credits to better promotion of programs. Turf at the Par 3 is in good health, maintenance staff have been working through mechanical issues with the rough mower, and hope to have rough areas looking as good as tees, fairways and greens soon. page 17 Mr. Wallgren shared year to date expenditures and revenues, through May 31, 2013. Revenues currently exceed expenditures by $3,365. The commission noted errors on the Budget to Actual report. Staff will correct and re -send the report. Ivy Hills Park Tennis Court Mr. Sedlacek reported that the tennis court at Ivy Hills Park was in need of repair which goes beyond the normal patching and repainting. An estimate to patch, place a 1.5" asphalt overlay and repaint the court is approximately $24,000. A typical rebuilding of a court costs $50,000. Mr. Sedlacek also noted that Valley Park was redone several years ago, with patching and Sport Court tile surfacing installed which also cost approximately $50,000. Staff encouraged the commission to set an open house to collect public input on the court. The commission timing, weighing setting an open house early enough in the year to still complete a rehab of the court in 2013 against holding off to make sure the public is well informed. The commission decided that it was more important to make the community aware of the issue, and utilize the next Heights Highlights to promote the open house. Chair Levine made a motion to hold an open house to discuss options for Ivy Hills Park tennis courts prior to the Parks and Recreation Commission meeting Tuesday, October 8, 2013. Commissioner Miller seconded the motion. Ayes: 7 Nays: 0 Commission Comments Commissioner Toth requested an update on weed treatment in Roger's Lake, and inquired if a garbage can could be placed at the S -Curve on Wagon Wheel Trail. Mr. Mazzitello responded that the contractor for treating weeds keeps a close eye on Rogers Lake, and will treat the lake when conditions are optimal. City staff recommends against a garbage can at the S- Curve, as the area seems to have less litter now than in years when there was a can in the area. The can may also pose a safety risk, cluttering an already crowded area. Commissioners wished Mr. Sedlacek well is his new career opportunity and encouraged residents to get out and enjoy Mendota Heights Parks and Trails. Adjourn Commissioner Paper made a motion to adjourn the meeting, Commissioner McGrory -Ussett seconded the motion. Ayes 7: Nays 0 The meeting adjourned at 8:35 p.m. Respectfully Submitted by Jake Sedlacek 0 * CITY OF !i'IJ MENDOTA HEIGHTS page 18 1101 Victoria Curve I Mendota Heights, M 651.452.1850 phone 1 651.452.8940 fax www.mendota- heights.com 5d. DATE: June 18, 2013 TO: Mayor and City Council FROM: Justin Miller, City Administrator SUBJECT: July 2nd Meeting Cancellation BACKGROUND Due to the proximity of the July 2nd council meeting with the Independence Day holiday, there have been discussions about cancelling the July 2, 2013 city council meeting. Staff has prepared for this action and does not have any items that are urgent or cannot be delayed until the July 16th meeting. BUDGET IMPACT N/A RECOMMENDATION Staff recommends that the Mendota Heights City Council officially cancel the July 2, 2013 city council meeting. This action requires a majority vote of the city council. 0 * CITY OF !i'IJ MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor and City Council FROM: Justin Miller, City Administrator SUBJECT: Out of State Travel Request BACKGROUND page 19 5e. 1101 Victoria Curve I Mendota Heights, Mf 651.452.1850 phone 651.452.8940 fax www.mendota- heights.com Pursuant to city policy, any out of state travel by city council or employees must be approved by the city council. Each year the International City /County Management Association holds an annual conference, and this year's event is September 22 -25 in Boston, Massachusetts. The cost for City Administrator Miller to attend this conference, including conference registration, travel, meals and lodging will be approximately $1500. BUDGET IMPACT This was a budgeted item and there is sufficient money available in the 2013 budget to accommodate this request. RECOMMENDATION Staff recommends that the Mendota Heights City Council approve this out of state travel request. This action requires a majority vote of the city council. CITY OF MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor and City Council FROM: Justin Miller, City Administrator SUBJECT: Staff Re- Organization Plan BACKGROUND 1101 Victoria Curve 1 Mendota Heights, 651.452.1850 phone 1 651.452.8940 ax www.mendota-heights.com page 20 With the resignation of Assistant to the City Administrator Jake Sedlacek, an opportunity has arisen to reorganize staff positions to better reflect the current and future needs of our organization. To accomplish this, I recommending the following staff changes: 1) Tamara Schutta would be appointed to the Assistant to the City Administrator position. She will continue to manage the city's human resources duties but will also take on several of the duties Mr. Sedlacek was handling, such as the Friday News and other communications, contract management (cell tower arrangements, Pilot Knob, etc.) and other special projects as they arise. Tamara has served the organization in a very professional and high - performing manner in her time here and I am excited to have her take on these new responsibilities. She has experience as an assistant in other cities and I absolutely know that she will succeed in her new role with us. 2) I recommend that the city then hire a position focused more on the planning and zoning activities that we handle on a daily basis. This planner position will handle all planning and zoning cases (both administrative and those that go to the planning commission), recycling duties, and code enforcement (such as property maintenance, weed control, and other complaints). 3) Finally, the parks and recreation duties that were in the assistant position will be transitioned to Recreation Program Coordinator Sloan Wallgren. In his short time here Sloan has given me a high level of confidence that he can absorb these duties, which were mainly the Par 3 activities, staffing the Parks and Recreation Commission, and coordinating capital parks improvements. I believe this new structure will help us continue to provide a high level of services to our residents, visitors and business community. Formal actions that are needed to endorse this plan include: 1) Authorize the promotion of Tamara Schutta to Assistant to the City Administrator/HR Coordinator (position description attached) at the city' s pay grade of 29 - Step A, page 21 effective July 1, 2013. Per the city's personnel policy, she would begin her one -year probationary period at the same time. 2) Approve the planner job description (attached) and authorize staff to begin the recruitment process. It is anticipated that the job will be posted on June 19th with an anticipated start date of July 29th. This position would be classified at Grade 20 on the city's pay scale. 3) Approve the revised job descriptions for the Recreation Program Coordinator and Assistant to the City Administrator/HR Coordinator to reflect their new duties. BUDGET IMPACT It is anticipated that the new configuration of these positions would save the city roughly $17,000 in personnel expenses. RECOMMENDATION Staff recommends that the Mendota Heights City Council approve the staffing proposal outlined in the above memo. This action requires a majority vote of the city council. page 22 CITY OF MENDOTA HEIGHTS TITLE: ASSISTANT TO THE CITY ADMINISTRATOR /HR COORDINATOR Department: Administration Accountable To: City Administrator Class Code: Exempt /Grade 29 Primary Location: City Hall Normal Hours: 8:00 a.m. to 4:30 p.m. Date of Last Revision: June 2013 Job Purpose: The Assistant to the City Administrator /HR Coordinator will perform a wide variety of administrative responsibilities and special project support; interact routinely with the public and other agencies. This position is responsible for the day to day administration of human resources and employment related issues in the city. Tasks include coordinating recruitment of city positions, benefits administration, union issues, personnel policy development and updating, staff training and more. Duty No. Essential Duties 1. Assists the City Administrator in the management of the City • Prepare reports, memos, and special projects as assigned with direct accountability for effective performance of such projects. • Plan and coordinate major project -based assignments, create strategic plans related to assignments, and coordinate work efforts of such assignments. • Assist City Administrator as citizen liaison by responding to citizen's requests /concerns voiced through citizen letters, e- mails, and telephone calls. • Serve as a member of the senior management team and perform liaison activities between various departments, community and business organizations, other units of government, and professional associations. • Attend meetings and conferences as directed, as a representative of the City Administrator. • Assist with preparation and monitoring of City budget. • Research and prepare reports on specific issues as assigned by the City Administrator. • Assist with communications to the general public (i.e. Friday News, Twitter, Facebook, etc...). • Manage Cell Towers Lease Agreements. • Manage Historic Pilot Knob Restoration efforts. page 23 2. Monitor Federal and State legislation that may affect the City and its various departments • Ensure timely transmittal of information to City Administration and City Council. • Monitor regional and national activities /trends that may affect and /or influence the City. 3. Supervise the Recreation Program Coordinator 4. Staff Recruitment Overall responsibility for conducting recruitment for all city positions including the following. • Coordinating process with department head. • Ranking applications pursuant to employment law. • Participating in interview process and candidate selection. Manages hiring process, background investigations, etc. • Employee orientation process. 5. Personnel Policy and Other Personnel Related Issues Responsible for the creation and maintenance of the following personnel related policies and practices. • City personnel policies. • Employee position descriptions. • Employee personnel files. • Assist with city pay plan administration, pay equity and job analysis. • Employee drug testing program. • Annual employee evaluation process. • Employee termination process. 6. Benefits Administration Responsible for administration of all employee benefits programs. • Serve as contact between benefit contractors and city staff. • Coordinate annual city benefits renewal /fair. • Responsible for city wellness program activities. • Coordinate workers compensation program. page 24 7. Labor Relations Assists the city administrator in a variety of labor relations issues including the following. • Union contract negotiations. • Grievances, mediation and arbitrations. • Safety committee and safety issues. • Labor /management committee 8. Training Responsible for creation and monitoring of city wide training programs for staff. 9. Miscellaneous • All other duties as assigned by the City Administrator. Minimum Qualifications • Bachelor's degree in public administration, business administration, urban and regional studies or a related field. • Two years of increasingly responsible experience in local government personnel administration. • An equivalent combination of education and work experience may be considered for this position. Desired Qualifications • Master's degree in public administration, business administration, urban and regional studies or a related field. • Three years of increasingly responsible experience in local government personnel administration. Knowledge /Skills /Abilities Required • Principles and practices of public administration, organizational theory and management. • Knowledge of human resources administration, principles, practices and techniques including legal requirements. page 25 • The ability to establish and maintain effective working relationships with the City Council, city staff members, other public agencies and organizations, the citizens of Mendota Heights and the general public. • The ability to exercise independent judgment and discretion in decision making with minimal supervision. • The ability to use word processing, spreadsheet, database and financial system software as part of completing professional responsibilities. • The ability to communicate, both written and verbally, and the ability to listen attentively. Core Competencies of Position • Knowledge of work rules. Develops and maintains a thorough working knowledge of all city and applicable jurisdictional policies and procedures in order the help facilitate compliance with such policies and procedures by all staff members. • Develops respectful, cooperative and productive work relationships with coworkers, including the demonstrated willingness to help newer staff so their respective job responsibilities can be performed with confidence as quickly as possible. • Commitment to customer service. Demonstrates by personal example the service quality and integrity expected from all staff members. Represents Mendota Heights in a professional manner to the general public, employees and to other outside contact /constituencies in a manner that helps maintain and enhance Mendota Heights' reputation as well managed and citizen oriented. • Communication. Confers regularly with and keep immediate supervisor informed of all important matters pertaining to those functions and job responsibilities for which the employee is accountable. • Productivity and work organization. Demonstrate ability to plan, organize and accomplish work in a timely and efficient manner. • Problem solving and decision making. Exercise good judgment, analytical thinking, and independent thinking as it relates to departmental and city procedures, problems and policy interpretations. • Safety rules and procedures. Develop knowledge of and observe the safety policies and procedures of the city. Perform tasks in a safe and efficient manner while using appropriate safety equipment, clothing and devices. page 26 Physical Activities /Requirements Positions in this class typically require: sitting, feeling, manual dexterity, grasping, talking, hearing and seeing. The individual may encounter some travel, evening meetings, unexpected and prolonged workdays and stress and pressures from dealing with emotional issues and conflicts. There is sustained exposure to computer keyboards and video screens. Sedentary work: Exerting up to 20 pounds of force occasionally and /or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects. Safety Policy It is the responsibility of every employee of the City of Mendota Heights to know and observe the safety policies and procedures of the city. Each employee is expected to perform their tasks in a safe and efficient manner while using appropriate safety equipment, clothing and devices. Miscellaneous Information Must satisfactorily pass a criminal background examination. Environmental Conditions -Work is performed in a well lit, well ventilated and temperature controlled office. Noise level is at a minimum. Equipment and Tools- Computer, terminal, peripherals, multi -line telephone, fax machine, calculator, and other basic office machines. The above description is intended to describe the general functions, skills and knowledge of the person assigned to this job. The employee may be required to perform other related duties as assigned. Licensing Required- Possession of a valid driver's license. page 27 CITY OF MENDOTA HEIGHTS TITLE: Planner Department: Administration Accountable To: City Administrator Class Code: Exempt /Grade 20 Primary Location: City Hall Normal Hours: 8:00 a.m. to 4:30 p.m.* Date of Last Revision: June 2013 *This position will be required to attending Planning Commission meetings and occasionally City Council meetings. Job Purpose: The purpose of this position is to administer all planning and zoning ordinance s and polices. Performs highly responsible and independent professional work related to planning and development plan review, including the implementation of the City's zoning, subdivision regulations, site plan approval process as well as the Comprehensive Plan. Duty No. Essential Duties 1. Planning • Review Planning Applications. Analyze consistency with City Zoning Ordinance and Comprehensive Plan, city policies and relevant laws, rules and regulations and developing appropriate finds to approve or deny. • Meet with developers to review policies /procedures and provide initial feedback on plans. • Reviews hearing publications and legal notices to ensure proper publication and distribution. • Researches and analyzes proposed changes /updates to the City's Comprehensive Plan, Zoning Ordinance, and Subdivision Ordinance and makes recommendations based upon findings. • Provide information to general public concerning lot dimensions, legal descriptions, property identification, etc. • Prepare and update planning policies and programs (i.e. comprehensive plans, zoning, sign, and subdivision ordinances). page 28 2. Serves as staff liaison to the Planning Commission. • Prepare planning application reports to the Planning Commission with supporting documents. • Prepare agendas for Planning Commission meetings. 3. Code Enforcement • Administer and enforce city ordinances as they pertain to zoning, signs and subdivisions. • Respond to general complaints and code enforcement. • If necessary, provides abatement recommendations to the City Administrator and tracks billing and assessment practices for unpaid work completed on behalf of the city. 4. Serve as Recycling Coordinator for the City. • Prepare and submit grants, articles and budget materials. • Attend regular meetings, give presentations to community groups, and answer inquiries from residents and businesses. • Participate in county -wide recycling planning efforts. • Organize the City's annual clean -up day. 5. Miscellaneous • Oversight of consultant planner • Coordinates with the Dakota County Community Development Agency and other outside organizations as issues of importance to the city arise. • All other duties as assigned by the City Administrator. Minimum Qualifications • A bachelor's degree in planning, urban studies or closely related field. • Two years of experience in planning and /or zoning. Desirable Qualifications • A master's degree in planning, urban studies or closely related field. • Certified Planner by the American Institute of Certified Planners (AICP); • Three or more years of experience in planning and /or zoning in a municipal setting. page 29 Knowledge /Skills /Abilities Required • Considerable knowledge of municipal planning and zoning principles, practices and ordinances. • Knowledge of land use laws in the State of Minnesota. • Knowledge of principles and practices of public administration, organizational theory and management. • Strong organizational skills and the ability to handle detail and follow - through to completion of projects. • The ability to establish and maintain effective working relationships with the City Council, city staff members, other public agencies and organizations, developers, architects, engineers, the citizens of Mendota Heights and the general public. • The ability to exercise independent judgment and discretion in decision making with minimal supervision. • The ability to use a personal computer in a windows environment including familiarity with MS Word, Excel, PowerPoint, Publisher and Outlook. • The ability to communicate, both written and verbally, and the ability to listen attentively. • The ability to interpret architectural plans and other documents related to development proposals. • The Ability to make effective presentations to the Planning Commission and City Council. Core Competencies of Position • Knowledge of work rules. Develops and maintains a thorough working knowledge of all city and applicable jurisdictional policies and procedures in order the help facilitate compliance with such policies and procedures by all staff members. • Develops respectful, cooperative and productive work relationships with coworkers, including the demonstrated willingness to help newer staff so their respective job responsibilities can be performed with confidence as quickly as possible. • Commitment to customer service. Demonstrates by personal example the service quality and integrity expected from all staff members. Represents Mendota Heights in a professional manner to the general public, employees and to other outside contact /constituencies in a manner that helps maintain and enhance Mendota Heights' reputation as well managed and citizen oriented. • Communication. Confers regularly with and keep immediate supervisor informed of all important matters pertaining to those functions and job responsibilities for which the employee is accountable. page 30 • Productivity and work organization. Demonstrate ability to plan, organize and accomplish work in a timely and efficient manner. • Problem solving and decision making. Exercise good judgment, analytical thinking, and independent thinking as it relates to departmental and city procedures, problems and policy interpretations. • Safety rules and procedures. Develop knowledge of and observe the safety policies and procedures of the city. Perform tasks in a safe and efficient manner while using appropriate safety equipment, clothing and devices. Physical Activities /Requirements Positions in this class typically require: sitting, feeling, manual dexterity, grasping, talking, hearing and seeing. The individual may encounter some travel, evening meetings, unexpected and prolonged workdays and stress and pressures from dealing with issues and conflicts. There is sustained exposure to computer keyboards and video screens. Sedentary work: Exerting up to 20 pounds of force occasionally and /or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects. Safety Policy It is the responsibility of every employee of the City of Mendota Heights to know and observe the safety policies and procedures of the city. Each employee is expected to perform their tasks in a safe and efficient manner while using appropriate safety equipment, clothing and devices. Miscellaneous Information Must satisfactorily pass a criminal background examination. Environmental Conditions -Work is performed in a well lit, well ventilated and temperature controlled office. Noise level is at a minimum. Equipment and Tools- Computer, terminal, peripherals, multi -line telephone, fax machine, calculator, and other basic office machines. Licensing Required- Possession of a valid driver's license. page 31 Final candidate must satisfactorily pass a criminal background investigation and reference verification. Individual will be required to submit to and pass a drug and /or alcohol screen. The above description is intended to describe the general functions, skills and knowledge of the person assigned to this job. These examples are intended only as illustrative of various types of work performed, and are not all inclusive. The employee may be required to perform other related duties as assigned. The job description is subject to change as the needs of the employer and requirements of the job change. page 32 CITY OF MENDOTA HEIGHTS TITLE: RECREATION PROGRAM COORDINATOR Department: Parks and Recreation Accountable To: Assistant to the City Administrator Class Code: Exempt Pay Grade: 17 Primary Location: City Hall Normal Hours: 8:00 a.m. to 4:30 p.m.* Date of Last Revision: June 2013 *This position will be required to occasionally work nights, weekends and holidays. Job Purpose: This position works under the general supervision of the Assistant to the City Administrator. This is position is responsible for clubhouse operations at Par 3 Golf Course and the overall coordination, administration, implementation, and management of recreation programs and activities. Essential Duties 1. Responsible for coordinating and evaluating recreation programs which will provide year round activities for city residents on a user fee basis. 2. Manage the scheduling and use of recreation facilities for use by the general public, youth athletic associations, schools, special events, community groups and city programs. 3. Coordinates the registration process for Par 3 and recreation programs. 4. Maintain records and provide regular reports on program participation, program revenue production, and program evaluation. 5. Advise the Assistant to the City Administrator in the process of hiring, assigning, supervising and evaluating PT seasonal staff for the Par 3 Golf Course, recreation programs and warming houses rinks. 6. Act as programming advisor and staff representative to the parks and recreation commission including preparing reports and recommendations relative to Par 3 and recreation programs. 7. Work with Assistant to the City Administrator to develop and implement marketing, promotions and public relations materials for Par 3 and recreation activities. 8. Oversee Par 3 Gl-ulah.aus.e operations, including maintenance, clubhouse operations, concessions, policies and procedures and resolving customer issues /concerns. 9. Work the clubhouse functions as needed to ensure an efficient and cost effective operation. page 33 10. Seek out cost - effective sponsorship opportunities for Par 3 and recreation facilities and events. 11. Coordinates city's involvement in community events. 12. Develops, prepares, and justifies a budget for areas of responsibility. Controls and accounts for the expenditure of funds in accordance with the approved budget. Recommends charges for fee -based programs. 13. Serves as staff liaison to the Parks and Recreation Commission. Prepare agenda materials for monthly meetings. 14. Serve as a liaison between the City and youth athletic associations, ISD 197, and other organizations. 15. Work with maintenance staff to ensure athletic fields are well maintained and prepared for use by outside organizations. Minimum Qualifications • A Bachelor's degree from an accredited college in Parks and Recreation Administration, or related field. • Two (2) years of increasingly responsible experience in municipal recreation including managing and programming a golf course or equivalent. • A combination of education and five (5) years of experience may be substituted. • Two (2) years of experience is desired in recreational programming and with a demonstrated ability to coordinate staff, budgets and facilities. • Two (2) years of experience is desired in scheduling and coordinating athletic leagues and /or tournaments. • Two (2) years of experience supervising part -time seasonal staff. • Valid Driver's License. Desired Qualifications • Certified Parks and Recreation Professional (CPRP). • Two (2) years of experience marketing public facilities. • Two (2) years of experience in a service industry setting. • First Aid /CPR Certified page 34 Knowledge /Skills /Abilities Required A. Thorough knowledge of the principles, practices, organizational purposes and administration of parks and recreational programming. B. Ability to develop, coordinate and direct varied activities involved in a community recreation program. C. Knowledge of principles and processes for providing customer service. D. Ability to establish and maintain positive and effective working relationships with the general public, other employees, community groups, athletic associations and school officials. E. Knowledge of the rules and etiquette of golf. F. Knowledge of golf league scheduling. G. Knowledge of business and management principles H. Ability to communicate effectively orally and in writing. 1. Ability to schedule, assign and supervise part -time, temporary and /or volunteer recreational personnel. J. Ability and willingness to work evenings, weekends and holidays as needed. K. Strong organizational skills. Core Competencies of Position • Knowledge of work rules. Develops and maintains a thorough working knowledge of all city and applicable jurisdictional policies and procedures in order to facilitate compliance with such policies and procedures by all staff members. • Commitment to customer service. Demonstrates by personal example the service quality and integrity expected from all staff members. Represents Mendota Heights in a professional manner to the general public, employees and to other outside contact /constituencies in a manner that helps maintain and enhance Mendota Heights' reputation as well- managed and citizen - oriented. • Communication. Confers regularly with and keeps immediate supervisor informed of all important matters pertaining to those functions and job responsibilities for which the employee is accountable. • Productivity and work organization. Demonstrate ability to plan, organize and accomplish work in a timely and efficient manner. • Problem solving and decision making. Exercise good judgment, analytical thinking, and independent thinking as it relates to departmental and city procedures, problems and policy interpretations. • Safety rules and procedures. Develop knowledge of and observe the safety policies and procedures of the city. Perform tasks in a safe and efficient manner while using appropriate safety equipment, clothing and devices. Physical Activities /Requirements Positions in this class typically require: sitting, walking, feeling, manual dexterity, grasping, talking, hearing and seeing. There is sustained exposure to computer keyboards and video screens. Employee is occasionally required to climb or balance; stoop, kneel, crouch, or crawl. page 35 Sedentary work: The employee must occasionally lift, carry, and /or move up to 50 pounds. Environmental Conditions -Work is performed in a well -lit, well ventilated and temperature controlled office. Noise level is at a minimum while in the office. Noise level is moderately loud when in the field. While performing duties of this job, the employee occasionally works in outside weather conditions. Equipment and Tools- Computer, cash register, calculator, copy and fax machine, phone, automobile, other basic office machines and various sports equipment used in recreation programs. Safety Policy It is the responsibility of every employee of the City of Mendota Heights to know and observe the safety policies and procedures of the city. Each employee is expected to perform their tasks in a safe and efficient manner while using appropriate safety equipment, clothing and devices. Miscellaneous Information Final candidate must satisfactorily pass a criminal background investigation and reference verification. Individual will be required to submit to and pass a drug and /or alcohol screen. The above description is intended to describe the general functions, skills and knowledge of the person assigned to this job. These examples are intended only as illustrative of various types of work performed, and are not all inclusive. The employee may be required to perform other related duties as assigned. The job description is subject to change as the needs of the employer and requirements of the job change. H:...\ Hiring \Recreation Program Coordinator \Recreation Programmer Coordinator 2013.doc CITY OF MENDOTA HEIGHTS page 36 5g. 1101 Victoria Curve 1 Mendota Heights, M 651.452.1850 phone 1 651.452.8940 ax www.mendota-heights.com DATE: June 18, 2013 TO: Mayor, Council and City Administrator FROM: Mike Aschenbrener SUBJECT: Resolution 2013 -039: Formally Acknowledging Receipt of Gifts to the City 5K Run and the City Parks Celebration BACKGROUND The city auditor has advised that Minnesota State Statute 465.03 "Gifts to municipalities" requires all donations be acknowledged by resolution. This memo meets Minnesota State Statutory requirements. Sergeant Neil Garlock has coordinated every aspect of the City of Mendota Heights 5k Run \Walk component of the Parks Celebration since 2006. Each year he has strived to ensure the success of the race and to ensure the proceeds go to Special Olympics Minnesota. This year's total donation to Special Olympics Minnesota will be $7329.17 plus three additional additional checks that were made out directly to Special Olympics for $205.00. This year businesses and residents donated items valued at $14,316.00 to the 5k race. See attached lists of donations to the 5k. Donations and prizes donated to the Parks Celebration totaled $4,550.00. A complete list of donors and prizes is included in Council Resolution 2013 -39. I recommend the City Council pass the attached resolution accepting the gifts to the 5k Run/Walk and authorize a check made out to Special Olympics Minnesota for $7,329.17. Thank you letters have been sent to the Parks Celebration Donors and will be sent to the 5k Donors after the resolution has been passed. BUDGET IMPACT These donations help offset the costs of running the community celebrations. RECOMMENDATION If Council desires to implement the recommendation, pass a motion adopting Resolution No. 2013 -39: "RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF THE GIFT TO THE CITY 5K AND THE CITY PARKS CELEBRATION," and authorize a check to Special Olympics Minnesota for $7329.17. page 37 City of Mendota Heights Dakota County, Minnesota RESOLUTION NO. 2013 -39 RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF THE GIFTS TO THE CITY 5K AND THE CITY PARKS CELEBRATION. WHEREAS, the City of Mendota Heights desires to follow Minnesota Statute 465.03 "Gifts to municipalities "; and WHEREAS, the Minnesota State Statute requires a resolution to accept gifts to municipalities; and WHEREAS, the City has previously acknowledged gifts with a resolution; and WHEREAS, the City Council of the City of Mendota Heights have duly considered this matter and wish to acknowledge the civic mindedness of citizens and officially recognize their donations. NOW THEREFORE BE IT HEREBY RESOLVED that the City Council of the City of Mendota Heights is accepting donations from the following people and organizations in support of the 5k run and the Mendota Heights Parks Celebration. 2013 Mendota Heights 5K - Donations 2013 5K Door Prizes Donor Accent Plumbing Allies Hardwood Floors American Bank Anytime Fitness Artitude Axe I's BC Contracting Billy's Bob Brackey Bob Brackey Boca Chica Bogey's Bonfire's BP- Mendota Heights Buffalo Wild Wings Buon Giorno Italia Camelot Cleaners City of Mendota Heights -Par 3 Cherokee Tavern Amount Girls 26 inch bike $102.00 2 -$25 Holiday Cards $50.00 2 -$25 Gift Cards, 2 Caps & 2 Water Bottles $100.00 600 Cinch Bags $600.00 $150 Gift Certificate $150.00 4 -$25 Gift Cards $100.00 Fall Turf Core Aeration $150.00 2 -$25 Gift Cards $50.00 $800 Cash $800.00 43" Samsung TV $425.00 $30 Gift Card $30.00 2 -$50 Gift Cards & Pullover Jacket $150.00 $25 Gift Card $25.00 2 -4 Oil Change Certificates $260.00 2 -50 Wing Coupons & 3 Set of Sauce $87.00 $25 Gift Card $25.00 2 -$10 Gift Cards $20.00 3 -4 Rounds of Golf $156.00 $20 Gift Card $20.00 Chet's Liquor Courtyard Marriott Cub Foods -WSP DeGidio's Dixie's Downtowner Woodfire Grill Eagle Street Grille Fairfield Inn & Suites Fireside Lounge Gallagher's Goodfellows Landscapes Grand 7 Great Moon Buffet Greg Boyle Hampton Inn -Eagan Holiday - Lilydale Junior's Cafe & Grill Justin Miller Klocke Autoworks Kraus - Anderson Landmark Jewelers Larry Nichols Laurie Murphy Lilydale Barbers Lilydale Garden Center Lost Spur Golf Course Lucky's Mancini's Mary Franzen Massage Element Meisinger Construction Mendakota CC Mendota Liquor Mike Corbett Mike's Butcher Shop Moose Country Neil Garlock Neil Garlock O'Gara Pam's Hair Design Pam's Hair Design Paradise Car Wash Paradise Car Wash 2 Bottles of Wine 10 -Free Nights Stay $25 Gift Card 3 -$50 Gift Cards $25 Gift Card $50 Gift Card 2 -$25 Gift Cards 2 -Free Nights Stay $20 Gift Certificate 2 -$25 Gift Cards IPAD Mini & 500 Can Coolers 4 Twin Tickets 2 -$25 Gift Cards $200 Cash 2 -Free Nights Stay 2 -$25 Gift Cards $20 Gift Card $25 Embellir Gift Card $100 Cash 2- Minnesota Twins Tickets 72" Strand Freshwater Pearls $100 Cash Kindle Fire Mens Haircut Gift Basket 2- 18 Holes of Golf For 2 10 -$25 Gift Cards 2 Sirloin Dinners $50 D'amico Gift Card 1 Hour Massage 2 -$40 Holiday Cards Golf of 4 & Lunch Bottle of Vodka Framed Print $15 Gift Card 4 -$25 Gift Cards $300 Cash 39" Sanyo TV 2 -$20 Gift Cards $50 Gift Card 10 Tanning Sessions Complete Vehicle Detail 2- 5 Full Service Washes page 38 $ 30.00 $1,000.00 $25.00 $150.00 $25.00 $ 50.00 $ 50.00 $ 200.00 $20.00 $ 50.00 $ 700.00 $132.00 $ 50.00 $ 200.00 $250.00 $ 50.00 $20.00 $25.00 $100.00 $100.00 $ 300.00 $100.00 $160.00 $ 20.00 $125.00 $80.00 $250.00 $25.00 $ 50.00 $80.00 $80.00 $800.00 $25.00 $ 300.00 $15.00 $100.00 $ 300.00 $375.00 $40.00 $ 50.00 $42.00 $205.00 $265.00 Patty McFarlane Perkin's -Eagan Perkin's -WSP Pool & Yacht Rainbow Foods -WSP Robert Franson Romero Auto Shamrock's Smith Liquors Snap Fitness- Lilydale Soapy Joe's Somerset Country Club Southview Country Club St Paul Grill Steve, Bob, Neil & Mark Sunfish Cellars Super America Summit Brewing Co Mark & Tamara Schutta Mark & Tamara Schutta Team Parking Teresa's Restaurante The Pizza Shop Thompson Oaks Golf Course TK's Coffee USA2EVERYWHERE Wild Onion Wine Market Zerorez Total Donor Parks Celebration Howry Residental Services TAJ Technologies Somerset Country Club Teresa's Mexican Restaurant Gateway Bank Viking Plastic Hudson Company Granite Foundation /Dungarvin Inc Bituminous Roadways Boltz 's Martial Arts & Fitness SignArt $100 Cash $25 Gift Card $20 Gift Certificate 2 -$100 Gift Cards $20 Gift Card 2 -$50 Mancini's Gift Cards Oil Change $12 Gift Card $50 Cash 3 -$200 Fitness Packages 12 Car Washes & Vehicle Detail Gift Pack 1 year Social Membership $50 Gift Card 60" Vizio TV 2 -$25 Gift Cards 2 -$25 Gift Cards Gift Pack $25 Buffalo Wild Wings Gift Card $25 Chipotle Gift Card 2 -Free Parking Stays 10 -$20 Gift Cards 3 -$25 Gift Cards & 3 T'shirts 6 Rounds of Golf, 2 Shirts & Cap Gift Pack Kindle Paper white 4 -$25 Gift Cards $25 Gift Card 3 Room Carpet Cleaning & 3 -$20 GC 2 $25 Gift Cards $1700 worth of programs page 39 $100.00 $25.00 $20.00 $ 200.00 $20.00 $100.00 $ 30.00 $12.00 $ 50.00 $ 600.00 $ 200.00 $ 50.00 $250.00 $ 50.00 $900.00 $ 50.00 $ 50.00 $ 50.00 $25.00 $25.00 $ 200.00 $ 200.00 $105.00 $175.00 $40.00 $140.00 $100.00 $25.00 $ 210.00 $14,316.00 Amount $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $ 500.00 $250.00 $ 50.00 page 40 Pioneer Engineering $100.00 Valmont $250.00 LCS Company $100.00 Boehm's Cycle Bike and Helmets valued at $600 American Bank $50.00 St. Thomas Academy $100 worth of merchandise $250.00 Moose Country 8 $25 Gift Cards Acacia Park $250.00 Lexington Heights Apartments $250.00 McDonalds 30 Ice Cream Cone Gift Cards Patterson Companies $500.00 Mendakota CC Golf, Carts, & Lunch for 4 Value of $700 $300.00 Mendota Animal Hospital $500.00 Children's Country Day School $100.00 Mendakota Pediatrics $500.00 Total $4,550.00 Grand Total of donations: $18,866.00 Adopted by the City Council of the City of Mendota Heights this 18th day of June, 2013. CITY COUNCIL CITY OF MENDOTA HEIGHTS By Sandra Krebsbach, Mayor ATTEST: By Lorri Smith, City Clerk page 41 5h. 1101 Virtual Curve 1 MerrdcRa Heig 1E5, .651.4511$$0 *h*► 1 ,6$1.e .99a0fax w w.memd a- heights,ecm Y OF M ERIQOTA HEIGHTS DATE: June 18, 2013 TO: Mayor, City Council and City Administrator FROM: Tamara Schutta, HR Coordinator SUBJECT: Personnel Action Item Item 1: Parks and Recreation Temporary Seasonal Hire 2013 Based on participation for the tennis programs this summer, staff determined another seasonal tennis assistant was needed. Staff interviewed applicant Daniel Axelrod for the tennis assistant and is recommending him for the position. A background check has been completed. Daniel's hourly rate for the tennis assistant position will be $9.75 per hour. Staff is recommending Daniel Axelrod for employment effective June 10, 2013 for the 2013 Parks and Recreation season. Item 2: Successful Completion of Probationary Period, City Clerk Lorri Smith Effective June 11, 2013, Lorri Smith has successfully completed her one -year probationary period as City Clerk. Lorri has been a great asset to the City. Lorri has a great attitude and demonstrates professional expertise in all that she does. This past year, Lorri was instrumental in managing the 2012 Primary and General elections. Lorri was also instrumental in selecting a new printer and a cost effective delivery method for the City's newsletter, the Heights Highlights saving approximately $3,000 per edition. Lorri Smith's position is a Grade Level 18 in the City's position and pay classification plan. On June 11, 2013, Ms. Smith is at Grade Level 18, Step E with a current hourly rate of $28.37. City staff recommends that the City Council officially appoint Lorri Smith to the position of regular, full -time City Clerk, effective June 11, 2013. BUDGET IMPACT As noted above. RECOMMENDATION Staff recommends that the Mendota Heights City Council approve the actions requested above for these two items. t CITY OF MENDOTA HEIGHTS page 42 1101 Victoria Curve 1 Mendota Heights, 651.452.1850 phone 1 651.452.894( www.mendota- heights.com 5i. DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: Lorri Smith, City Clerk SUBJECT: Renewal of Massage Licenses BACKGROUND Pursuant to Mendota Heights City Code 3 -6 -2: No person shall provide massage services or engage in the business of operating a massage enterprise, or in connection with any other city business enterprise without first obtaining a license. The licenses run from July 1 through June 30 of each year. Renewal applications have been received from each of the following: Massage Establishments: • Green Lotus Yoga and Healing Center, #100, 750 Main Street • Massage Elements, LLC located at 770 Highway 110 Massage Therapists working at Green Lotus Yoga and Healing Center: • Delaina Rae Hinrichs • Roger Lee Hinrichs • Julie Anne Olson • Warren Scott Winsness Massage Therapists working at Massage Elements: • Gayle Ann Aspenson • Sheri Ruth Bongaarts • Jane Louise Gilbert • Pamela Jean Latterell • Anne Marie Lustig • Laura Marie Orme • Georgina Alfrida Potgieter • Kay Louise Reich • Ann Freyberger Short • Michael Scott Taulman All of the required documentation has been received and the fees have been paid. Background investigations have been conducted by the Mendota Heights Police Department resulting in no negative findings on any of the above applicants. If approved, these licenses will be effective July 1, 2013 through June 30, 2014. RECOMMENDATION Staff recommends the Council approve the issuance of the license renewals as listed above for the period of July 1, 2013 through June 30, 2014. !2J CITY OF Or' MENDDTA HEIGHTS DATE: June 18, 2013 TO: Mayor and City Council FROM: Justin Miller City Administrator SUBJECT: Par 3 Maintenance Contract BACKGROUND page 43 1101 Victoria Curve I Mendota Heights, M 651.452.1850 phone 651.452.8940 fax www.mendota•heights.com The City of Mendota Heights has contracted with GM Management for maintenance of the grounds and equipment of the Par 3 Golf Course since 2008. Previous contracts have included maintenance labor as well as supervision of course maintenance. Following the 2012 golf season, GM Management informed the city that the two maintenance staff previously employed to maintain the course would no longer be available. For the 2013 season, the city has hired two part time seasonal Par 3 maintenance workers. The course is still in need of a maintenance supervisor, with knowledge of turf and golf course practices. Staff is recommending a revised contract with GM Management to continue overseeing maintenance activities on a consultant basis. The attached agreement would retain GM Management for the 2013 golf season as a consultant golf course superintendent, providing insight and suggested activities to city staff. Staff views this agreement as a means to maintain the healthy turf and good playing conditions that have been developed since 2008, while allowing for more direct control over the work direction of maintenance staff. BUDGET IMPACT The attached Par 3 Maintenance Consulting Contract is for $6,000 rather than $14,000, as included in the 2013 budget for this item. RECOMMENDATION Staff recommends entering into a Par 3 Maintenance Consulting Contract. If council wishes to implement this recommendation, pass a motion authorizing staff to execute the agreement. This action requires a simple majority vote. page 44 Page 1 of 3 PAR 3 MAINTENACE CONSULTING CONTRACT Mendota Heights Par 3 Golf Course City of Mendota Heights, MN Contractor: Custom Tree Services Inc. Phone: (651) 648 -2147 Date: Address: 6477 S Roberts Street Project Name: 2013 Mendota Heights Par 3 Maintenance City, State, Zip Code: Inver Grove Heights, MN 55077 Project Location: 1695 Dodd Road, Mendota Heights Contact: Jerry Murphy 1. Parties: This contract ( "Agreement ") governs the rights and responsibilities of GM Management, a division of Custom Tree Services, Inc., ( "GM Management ") and the City of Mendota Heights ( "City "). 2. Scope of Services: GM Management has agreed to provide, and the City has agreed to engage GM Management to provide for the City, certain management services at the City's Par 3 golf course. GM Management will supervise all regular turf maintenance activities, including regular inspections of the course to review: • Mowing of greens, tees, fairways and rough • Watering/irrigation schedules • Irrigation system maintenance • Needs for chemical and /or fertilizer applications • Turf management practices GM Management will be in regular contact with city staff to evaluate course needs and ensure that maintenance activities are completed in an efficient and professional manner. Purchasing GM Management will identify one individual to be authorized to make purchases up to an amount of $500 for the Par 3 Golf Course on behalf of the City at the following vendors: MTI Distributing, TurfWerks, LESCO mfg, Gertens and Menards. All other purchases must be coordinated through the City of Mendota Heights. 3. Payment: The City will pay GM Management a management fee of $6,000 for Golf Course Superintendent services. 4. Insurance, Indemnity, Limitation of Liability, Release: a. Workers' Compensation Insurance: Contractor shall provide a certificate of insurance showing evidence of workers' compensation coverage or provide evidence of qualification as a self - insurer of workers' compensation b. At all times during the term of this contract, GM Management shall maintain insurance commercial general liability (CGL), and if necessary commercial umbrella insurance, with a limit of not les than $1,000,000 each occurrence. The City shall be named as an additional insured under the CGL. page 45 Page 2 of 3 c. Indemnity: the parties hereby agree to mutually indemnify and hold harmless the other party for claims arising out of its negligent acts and omissions or willful misconduct or the acts of its employees or independent contractors, agents or assigns in connection with or relating to the performance of each party's obligations under this agreement. i. Notwithstanding the foregoing, nothing in this section is intended, nor should it be construed as a waiver of any municipal tort liability limits, governmental immunities or defenses which otherwise protect the City of Mendota Heights. d. After a period of 12 months from acceptance of the final payment due to GM Management, GM Management agrees that it shall be deemed to have released the City from any and all claims, causes of action and liability in connection with this contract or the performance of services. 5. Termination: Either party may terminate the contract for any reason with thirty (30) days written notice. Within thirty (30) days of termination, GM Management will be entitled to a pro rata compensation for all work completed as of the date of termination to the extent that such services were completed to the satisfaction of the City. 6. Amendment: This Agreement may only be amended by a written agreement, signed by both parties. 7. Independent Contractors: GM Management and the City are deemed to be independent contractors, and GM Management shall not be deemed to be an agent, officer or employee of the City, in connection with the matters contemplated by this Agreement. The City will not provide GM Management with any employee -type benefits, including but not limited to health insurance, a pension plan, vacation pay, or sick pay. Neither party has the right, power or authority, express or implied, to bind the other party or otherwise create any duty or obligation on the part of the other party, express or implied, nor shall either party hold out GM Management as having any such status, right, power or authority. The City acknowledges that GM Management, as an independent contractor, may perform services to other unrelated parties during the term of this Agreement. 8. Representations of GM Management. GM Management acknowledges that the City is hiring GM Management because of its expertise in this area and that the City has not provided any training for GM Management, its employees or agents. GM Management represents that it has sufficient knowledge and capacity to provide the Services for the City. 9. Compliance with Laws. GM Management agrees that it will comply with all applicable laws, rules and regulations in the performance of the Services. 10. Entire Agreement: This Agreement represents the entire agreement and understanding of the parties hereto with respect to the subject matter of this Agreement, and it supersedes all prior and concurrent agreements, understandings, promises or representations, whether written or oral, made by either party to the other concerning such subject matter. page 46 Page 3 q/3 11. Waiver: The failure of either party to insist in any one or more instances upon strict performance of any of the provisions of this Agreement shall not be construed as a waiver or relinquishment of the right to enforce or require compliance with such provision. 12. Applicable Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Term: The term of this Agreement is to be from date of signing through December 31, 2013. GM Management City of Mendota Heights Signature: Signature: Name: Name: Title: Title: Date: Date: Contact Persons The authorized contact person for GM Management is: Jerry Murphy 6477 So Roberts Street Inver Grove Heights, MN 55077 (651) 248 -6147 The authorized contact person for City of Mendota Heights is: Justin Miller City Administrator 1101 Victoria Curve Mendota Heights, MN 55118 651- 452 -1850 651 - 452 -8940 (fax) JustinM @Mendota - Heights.com r n CITY OF m MENDOTA HEIGHTS page 47 1101 Victoria Curve 1 Mendota Heights, MN 551 651.452.1850 phone 1 651.452.8940 fax www.mendota- heights.com 5k. DATE: June 18, 2013 TO: Mayor, City Council and City Administrator FROM: Dave Dreelan, Assistant Fire Chief SUBJECT: May Fire Synopsis Fire Calls The department responded to 26 calls for the month. The majority of calls were classified as false alarms or as good intent calls. Eight of the calls were residential in nature, five calls were commercial alarms, five calls were EMS calls, three calls were for mutual aid, two calls were power lines down, and there were two car fires and one grass fire. Monthly Squad Training The squad training for the month focused on water supply. Firefighters trained on all the aspects that are associated with hooking up to the fire hydrant, establishing a supply line to the apparatus and flowing water to the various hand lines that could be used at a residential fire. Each apparatus has three intakes that can be used to receive water from the hydrant and between 10 and 12 different discharges. Monthly Squad Training The department training for the month focused on maintaining our proficiency in drafting operations. Drafting is the pumping procedure that the fire service uses when there are no hydrants available so water is hauled by the tanker truck to the scene of a fire. All firefighters had an opportunity to practice setting up the drafting operation and operating the department's 2,000 gallon tanker. MENDOTA HEIGHTS FIRE DEPARTMENT MAY 2013 MONTHLY REPORT FIRE CALLS NO. 13058 - 13083 NUMBER OF CALLS: 26 page 48 FIRE ALARMS DISPATCHED: NUMBER ACTUAL FIRES Structure - MH Commercial Structure - MH Residential Structure - Contract Areas Vehicle - MH Vehicle - Contract Areas Grass /Brush /No Value MH Grass /Brush /No Value Contract MEDICAL Assist Extrication HAZARDOUS SITUATION Spills /Leaks Arcing /Shorting Chemical Power Line Down FALSE ALARM Residential Malfunction Commercial Malfunction Unintentional - Commercial Unintentional - Residential Criminal GOOD INTENT Smoke Scare Steam Mistaken for Smoke Other MUTUAL AID 3 1 1 1 6 1 1 10 2 TOTAL CALLS 26 STRUCTURE CONTENTS MISC. TOTALS TO DATE TOTAL MONTHLY FIRE LOSSES $0 $0 $0 $0 $6,000 $275 $7,300 $0 FIRE LOSS TOTALS MENDOTA HEIGHTS ALL FIRES, ALL AREAS (MONTH) $0 $0 MEND. HTS. ONLY STRUCT /CONTENTS MEND. HTS. ONLY MISCELLANEOUS MEND. HTS. TOTAL LOSS TO DATE $6,000 $5,000 $11,000 LOCATION OF FIRE ALARMS: TO DATE MENDOTA HEIGHTS 21 66 MENDOTA 2 2 SUNFISH LAKE 0 3 LILYDALE 1 7 OTHER 2 5 TOTAL 26 83 LAST YEAR 66 0 3 5 2 76 BILLING FOR SERVICES AGENCY THIS MONTH TO DATE MN /DOT $0 MILW. RR $0 CNR RR $0 OTHERS: TOTALS: $0 $0 $0 WORK PERFORMED HOURS TO DATE LAST YEAR FIRE CALLS 429.5 1440 1333 MEETINGS 17 184 199.5 DRILLS 169.5 751 781 WEEKLY CLEAN -UP 33 188 184 SPECIAL ACTIVITY 101.5 991 859 ADMINISTATIVE 0 0 0 FIRE MARSHAL 62 299 282 TOTALS 812.5 3853 3638.5 FIRE MARSHAL'S TIME FOR MONTH INSPECTIONS INVESTIGATIONS RE- INSPECTION MEETINGS ADMINISTRATION SPECIAL PROJECTS TOTAL 33.5 0 4 9.5 13 2 62 REMARKS: SEE OTHER SIDE FOR SYNOPSIS CITY OF MENDOTA HEIGHTS page 49 1101 Victoria Curve 1 Mendota H 55118 651.452.1850 phone 1 651.452.8940 fax www.mendota- heights.com DATE: June 18, 2013 TO: City Council FROM: Sloan Wallgren, Recreation Program Coordinator SUBJECT: Par 3 Update — June 2013 BACKGROUND The end of the school year coincides with the start of the busiest time of year for the Minnesota golf industry. Weather so far this year has not been favorable for playing golf as well as growing turf. The conditions of the course this year are very good, and should only improve as we get some much overdue sunshine. We have had a few mechanical issues, but nothing major. Staff has been able to minimize repair costs by doing a majority of repairs in- house. Participation in recreation programs is slightly ahead of pace from 2012. The week of June 10th 2013 is the first week of our Women's Golf League, Junior Golf League, and Junior Golf Camps. We have seen an increase in the number of registrations and revenue, and we have lowered the cost of golf lessons and leagues. Attendance at our after school Golf Club with Visitation School has grown to 19 participants. There are several smaller golf events taking place at the Par 3 during the month of June, however we still have plenty of availability to accommodate groups that are interested in playing golf. BUDGET IMPACT The attached monthly expenditure report shows revenues and expenditures through the end of May. The course has taken in $33,825 in revenues; expenditures for this period total $30,460. This results in net revenue over expenditure of $3,365 year to date. page 50 MENDOTA HEIGHTS PAR 3 BUDGET TO ACTUAL REPORT May 2013 (41.66% OF YEAR) REVENUES MAY YTD YTD BUDGET 2013 2013 GREENS, LEAGUE & TOURN FEES $123,000 $12,309 $14,190 11.54% RECREATION PROGRAMS $35,000 $5,946 $17,617 50.34% CONCESSIONS $23,000 $1,857 $2,008 8.73% SUNDRY REVENUE $100 $10 $10 10.00% INTEREST $250 $0 $0 0.00% CAPITAL CONTRIBUTIONS $0 $0 $0 0.00% PAR 3 FUND REVENUE TOTAL $181,350 $20,123 $33,825 18.65% EXPENDITURES MAY YTD YTD BUDGET 2013 2013 CLUBHOUSE SALARIES $46,700 $1,254 $1,254 2.68% ADMINISTRATIVE SALARIES $22,447 $1,735 $9,403 41.89% FICA/PERA $8,610 $428 $1,527 17.74% MEDICAL INSURANCE $6,273 $443 $2,214 35.29% U/E & W/C INSURANCE $6,100 $3,159 $3,297 54.05% RENTALS $1,300 $1,100 $1,100 84.62% UTILITIES $10,230 $754 $1,795 17.55% PROFESSIONAL FEES - AUDIT $2,390 $0 $0 0.00% PROF FEES - CONSULTING FEES $800 $0 $0 0.00% PROF FEES - GROUNDS MGMT $14,000 $0 $0 0.00% PROF FEES - GROUNDS WAGES $20,000 $455 $455 2.28% PROF FEES - TREE MAINTENANCE $2,000 $0 $0 0.00% ADVERTISING /NEWSLETTER $600 $98 $196 32.62% LIABILITY /AUTO INSURANCE $3,100 $0 $3,088 99.62% OPERATING COSTS /SUPPLIES $9,800 $277 $290 2.96% FUEL $2,000 $0 $0 0.00% REPAIRS & MAINTENANCE $13,000 $3,566 $4,123 31.72% SUNDRY /DUES /MILEAGE /CLOTHING $1,660 $712 $1,359 81.84% CAPITAL OUTLAY $0 $0 $0 0.00% ONLINE REG & CREDIT CARD FEES $2,450 $206 $359 0.00% PAR 3 EXPENDITURES TOTAL $173,460 $14,186 $30,460 17.56% page 51 MENDOTA HEIGHTS PAR 3 BUDGET TO ACTUAL REPORT MAY 2012 AND 2013 REVENUES MAY MAY YTD YTD 2012 2013 2012 2013 GREENS, LEAGUE, TOURNAMENT FEES $15,860 $12,309 $25,822 $14,190 RECREATION PROGRAMS $4,460 $5,946 $17,257 $17,617 CONCESSIONS $2,614 $1,857 $3,851 $2,008 SUNDRY REVENUE $7 $10 $26 $10 INTEREST $0 $0 $0 $0 CAPITAL CONTRIBUTIONS $0 $0 $0 $0 PAR 3 FUND REVENUE TOTAL $22,941 $20,123 $46,955 $33,825 EXPENDITURES CLUBHOUSE SALARIES $4,369 $1,254 $6,544 $1,254 ADMINISTRATIVE SALARIES $833 $1,735 $4,519 $9,403 FICA /PERA $623 $428 $1,390 $1,527 MEDICAL INSURANCE $203 $443 $1,015 $2,214 U/E & W/C INSURANCE $4,247 $3,159 $6,269 $3,297 RENTALS $651 $1,100 $651 $1,100 UTILITIES $777 $754 $1,643 $1,795 PROFESSIONAL FEES -AUDIT $0 $0 $0 $0 PROF FEES - CONSULTING FEES $0 $0 $250 $0 PROF FEES - GROUNDS MGMT $2,000 $0 $2,000 $0 PROF FEES - GROUNDS WAGES $2,703 $455 $4,154 $455 PROF - FEES -TREE MAINTENANCE $0 $0 $0 $0 ADVERTISING /NEWSLETTER $198 $98 $397 $196 LIABILITY /AUTO INSURANCE $0 $0 $2,359 $3,088 OPERATING COSTS /SUPPLIES $1,354 $277 $1,470 $290 FUEL $321 $0 $636 $0 REPAIRS & MAINTENANCE $2,333 $3,566 $5,040 $4,123 SUNDRY /DUES /MILEAGE /CLOTHING $99 $712 $871 $1,359 CAPITAL OUTLAY $0 $0 $0 $0 ONLINE REG & CREDIT CARD FEES $326 $206 $506 $359 PAR 3 EXPENDITUES TOTAL $21,038 $14,186 $39,715 $30,460 t au CITY OF MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: John R. Mazzitello, PE, PMP, MBA Public Works Director /City Engineer SUBJECT: Appointment of Interim Building Official page 52 1101 Victoria Curve 1 Mendota Heights, Mh 651.452.1850 phone 1 651.452.8940 fax www.mendota-heights.com 5m. BACKGROUND The City of Mendota Heights is required to have a designated Building Official, and has appointed a City staff member to this position. The City needs to have an appointed Interim Building Official that can fill in for the regular Building Official during periods of extended absences. Such a period is currently taking place, and the City's regular contracted service in unavailable. The City's regular Building Official is expected to return to work by mid - August. Mike Andrejka is an experienced and certified building inspector and has vast experience in Dakota County in monitoring and inspecting construction. Mike has worked as a municipal building inspector for the Cities of Apple Valley (currently by contract), Inver Grove Heights, Saint Louis Park, Minneapolis and Bloomington. In addition, Mike has also been a home renovation contractor. BUDGET IMPACT N/A RECOMMENDATION Staff recommends Council approve the appointment of Mike Andrejka as the Interim Building Official for the City of Mendota Heights. If Council wishes to implement the City Staff recommendation, pass a motion appointing Mike Andrejka as the Interim Building Official for the City of Mendota Heights by a simple majority vote. CITY OF MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, PE, Assistant City Engineer Michael Albers, PE, Civil Engineer page 53 5n. 1101 Victoria Curve 1 Mendota Heights, mi 651.452.1850 phone 1 651.452.8940 fax www.mendota-heights.com SUBJECT: Approval of Plans and Specifications and Authorization to Advertise for Bids for 2013 Sanitary Sewer Rehabilitation Project BACKGROUND Our sanitary sewer system is aging. Many of our pipes are 60 years old and will soon be in need of repair. Cleaning our sewer system on a regular cycle will help extend the life of the pipes. Televising of the system will show where immediate repairs are needed. Lining pipes in need of repair with cured-in- place- pipe will extend the life of our system. The 2013 Sanitary Sewer Rehabilitation Project consists of lining approximately 3000 feet of sanitary sewer. The locations were determined from the report provided with the 2011 sanitary sewer cleaning and televising project. Staff anticipates lining as many sanitary sewer pipes as possible without exceeding the budgeted amounts with the following priority: 1) Highway 13 from Sutcliff Circle to Fremont Avenue. 2) Fremont Avenue from Highway 13 to 475' East of Highway 13. 3) Wachtler Avenue from Lower Colonial Drive to Upper Colonial Drive 4) Cherry Hill Road from Ivy Lane to 300' south of Ivy Lane The completion date for the project is December 13, 2013. BUDGET IMPACT The project costs will be funded through the Sanitary Sewer Utility Fund which has sufficient funds to cover the project costs. The 2013 city budget includes $172,000 for sanitary sewer maintenance The sanitary sewer cleaning and televising project will cost approximately $39,000 which leaves approximately $133,000 for sanitary sewer lining. Staff anticipates lining as many sanitary sewer pipes as possible without exceeding the budgeted amounts. RECOMMENDATION Staff recommends that the council approve the final plans and specifications and authorize staff to advertise for bids. If city council wishes to implement the staff recommendations, pass a motion adopting RESOLUTION 2013 -40 APPROVING FINAL PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2013 SANITARY SEWER REHABILITATION PROJECT (PROJECT #201305). This action requires a simple majority vote. page 54 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2013 -40 A RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTIZEMENT FOR BIDS FOR THE 2013 SANITARY SEWER REHABILITATION PROJECT (PROJECT #201305) WHEREAS, the City Engineer reported that the proposed improvements and construction thereof were feasible, desirable, necessary, and cost effective, and further reported on the proposed costs of said improvements and construction thereof; and WHEREAS, the City Council has heretofore directed the City Engineer to proceed with the preparation of plans and specifications thereof; and WHEREAS, the City Engineer has prepared plans and specifications for said improvements and have presented such plans and specifications to the City Council for approval. NOW THEREFORE BE IT RESOLVED; by the Mendota Heights City Council as follows: 1. That the plans and specifications for said improvements be and they are hereby in all respects approved by the City. 2. That the Clerk with the aid and assistance of the City Engineer be and is hereby, authorized and directed to advertise for bids for said improvements all in accordance with the applicable Minnesota Statutes. Adopted by the City Council of the City of Mendota Heights this eighteenth day of June 2013. CITY COUNCIL CITY OF MENDOTA HEIGHTS Sandra Krebsbach, Mayor ATTEST Lorri Smith, City Clerk page 55 1101 Victoria Curve I Mendota Heights, N 651.452.1850 phone 651.452.8940 tax www.mendota- heights.com 0 * CITY OF !i'IJ MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, PE, Assistant City Engineer Michael Albers, PE, Civil Engineer 5o. SUBJECT: Accept Bids and Award Contract for 2013 Sanitary Sewer Cleaning and Televising Project BACKGROUND Three proposals (see attached resolution) were received and opened on Wednesday, June 12, 2013 for the Sanitary Sewer Televising and Cleaning Project. Overline & Son, Inc. submitted the low bid of $33,189.58. Their bid was lower than the Engineer's Estimate of $49,148.35. Based on the age of the pipe, staff anticipates that some additional work may be required that is not included in the low bid such as cutting root blockages, sags in the lines, or unforeseen restoration work. Our sanitary sewer system is aging. Many of our pipes are 60 years old and will soon be in need of repair. Cleaning our sewer system on a regular cycle will help extend the life of the pipes. Televising of the system will show where immediate repairs are needed. Lining pipes in need of repair with cured -in- place -pipe will extend the life of our system. In 2002, $30,000 of damage was reported due to sewer problems. In 2006 there were four sewer backups with insurance claims totaling over $10,000. Due to the city's proactive approach beginning in 2006, payouts resulting from sewer backups totaled less than $500 since 2008. In 2011, the city successfully defended itself again a sanitary sewer backup claim due to the city's proactive approach to sanitary sewer maintenance. We want to continue preventing sewer backups and future damage expenses. The City of Mendota Heights maintains 72.2 miles of sanitary sewer pipe. Currently, Rich Burrows along with one seasonal employee cleans approximately 10 miles of pipe per year. In addition, last year the city contracted with Overline & Son, Inc. for cleaning approximately 4.0 miles of the City's sanitary sewer system and televising approximately 11.6 miles of the City's sanitary sewer system. At our current rate, we are cleaning the system every 4 -6 years The proposed project is for the cleaning of approximately 3.2 miles of the City's sanitary sewer system and televising approximately 12.9 miles of the City's sanitary sewer system. The project area (see attached map) was last cleaned and televised in 2008. page 56 The completion date for the project is November 1, 2013. I expect that Overline & Son, Inc. is capable of meeting the completion dates and implementing the project in accordance with the plans and specifications given. BUDGET IMPACT The project costs will be funded through the Sanitary Sewer Utility Fund which has sufficient funds to cover the project costs. The 2013 city budget includes $172,000 for sanitary sewer maintenance. The sanitary sewer cleaning and televising project will cost approximately $39,000 which leaves approximately $133,000 for sanitary sewer lining. Staff does not anticipate exceeding the budgeted amounts. RECOMMENDATION Staff recommends that the council accept the bids and award the contract to Overline & Son, Inc. for their bid in the amount of $33,189.58. If city council wishes to implement the staff recommendation, pass a motion adopting A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE 2013 SANITARY SEWER CLEANING AND TELEVISING (PROJECT #201304). This action requires a simple majority vote. page 57 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2013 -41 A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE 2013 SANITARY SEWER CLEANING AND TELEVISING PROJECT (PROJECT #201304) WHEREAS, pursuant to an advertisement for bids for the proposed cleaning and televising of sanitary sewers to serve the area referred to as 2013 Sanitary Sewer Televising and Cleaning Project (City Project No. 201304), bids were received, opened and tabulated according to law and the following bids were received complying with said advertisement: NAME OF BIDDER AMOUNT OF BID Overline & Son, Inc. $33,189.58 Pipe Services Corporation $34,082.75 Infratech $48,249.92 and WHEREAS, the City Engineer recommended that the low bid submitted by Overline & Son, Inc. of Belle Plaine, Minnesota, be accepted. NOW THEREFORE BE IT RESOLVED, by the Mendota Heights City Council as follows: 1. That the bids for the above project are hereby received and accepted. 2. That the bid of Overline & Son, Inc. of Belle Plaine, Minnesota, submitted for the cleaning and televising of the above described project be and the same is hereby accepted. 3. That the contract be awarded to Overline & Son, Inc. of Belle Plaine, Minnesota, and that the Mayor and Clerk are hereby authorized and directed to execute and deliver any and all contracts and documents necessary to consummate the awarding of said bids. Adopted by the City Council of the City of Mendota Heights this eighteenth day of June 2013. CITY COUNCIL CITY OF MENDOTA HEIGHTS Sandra Krebsbach, Mayor ATTEST Lorri Smith, City Clerk Sanitary Sewer Improvement & Maintenance Plan 2013 -2017 Sanitary Sewer Cleaning and Televising Maintenance Plan December 13, 2012 0 2,500 SCALE IN FEET Nays 58 City of Mendota Heights Legend Cleaning and Televising 2013 2014 2015 2016 2017 2018 ANNAPOLIS S �'PRt?MOH AVE EMERSON AVE O LA E ERSC RUBY DI wFm o HOMPSC BET, I ENT WORTH AVE PT w OGRE N o.e �ACL�ORAV° .•: G \L1/7 0 CJ OCH .�HIDDEO N ^0.'( PO o� -R 2 oD' •a I3k ° 00 ° R� • O MARIE AVE o 0 po A 0 zo o 'P°4, ° o pv 0 0 Q� 0 6 W C'• E •CIR ° ° CAALLAHHAN a R�CC Ow LN �My ERCT Apo LwCTo o o Er LN o 0 ws�04 PRIVATE ROAD au a NATUREIVIEW CT UE:R RUn DMA CT ONEILLRD � ____° N9TF-RDL ir•o•-••••- mCITY OF MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: Ryan Ruzek, PE, Assistant City Engineer Michael Albers, PE, Civil Engineer page 59 1101 Victoria Curve I Mendota Heights, Mk 651.452.1850 phone 651.452.8940 fax www.mendota- heights.com 5p. SUBJECT: Authorization to Provide Surveying Services and Geotechnical Services for the Victoria Road & Rolling Green Neighborhood Improvements BACKGROUND The feasibility report for the Victoria Road & Rolling Green Neighborhood Improvements was ordered by the Mendota Heights City Council at the June 4, 2013, city council meeting. The proposed project includes reconstructing the rural section of Victoria Road from Lexington Avenue to Caren Road and rehabilitating the urban sections of Walsh Lane from Marie Avenue to 150' south of Stratford Road, Stratford Road, Oxford Court, Windwood Court, Rolling Green Curve, and Coventry Court. The Engineering Department is currently busy with the construction of Trunk Highway 110 & Trunk Highway 149 (Dodd Road) Intersection Improvements, construction of the Hunter & Orchard Neighborhood Improvements, construction of Crown Point & Overlook Neighborhood Improvements, finalizing 2012 street reconstruction and rehabilitation projects, obtaining CAMP samples on Lake Lemay, and NPDES Phase II Requirements. Staff requested proposals from two surveying companies and received proposals from both of the companies. Pioneer Engineering provided a proposal with an estimated cost of $13,500.00 to complete the topographic survey for Victoria Road & Rolling Green Neighborhood Improvements. The survey data will be used to design the reconstruction project if the project is approved this fall. The other proposal received had a price of $24,780.00. Pioneer Engineering is a local company that staff has worked with in the past and staff feels that they will complete the survey work to our satisfaction. Staff also requested proposals from four geotechnical companies and received proposals from three of the companies. Northern Technologies, Inc. provided a proposal with an estimated cost of $4,350.00 to complete the geotechnical services for the Victoria Road & Rolling Green Neighborhood Improvements which include soil borings, pavement design recommendations and recommendations for utility construction. The other proposals received had prices of $5,970.00 and $7,000.00. Staff has worked with Northern Technologies, Inc. on several projects in the past with excellent results. page 60 BUDGET IMPACT Surveying services and geotechnical services are included as indirect costs for the project. Staff anticipated these project costs and a summary is shown below: Estimated Actual Surveying Services $15,000.00 $13,500.00 Geotechnical Services $5,000.00 $4,350.00 Total $20,000.00 $17,850.00 RECOMMENDATION Staff recommends that the council authorize staff to sign the proposal from Pioneer Engineering for surveying services and the proposal from Northern Technologies, Inc. for geotechnical services. If city council wishes to implement the staff recommendations, pass a motion by simple majority vote authorizing staff to sign the proposal from Pioneer Engineering for surveying services with a not to exceed amount of $13,500.00 and authorize staff to sign the proposal from Northern Technologies, Inc. for geotechnical services with a not to exceed amount of $4,350.00. page 61 1101 Victoria Curve 1 Mendota Heights, MN 651.452.1850 phone 1 651.452.8940 fax www,mendota- heights.com 5q. DATE: TO: FROM: SUBJECT: CITY OF MENDOTA HEIGHTS BACKGROUND June 18, 2013 Mayor, City Council and City Administrator A / Kristen Schabacker, Finance Director ���(Vy Claims List Summary Significant Claims Asphalt Surface Technologies — Crown Point/Overlook Project Banyon Data Systems — Software Support JR's Advanced Recyclers — Spring Clean Up Lower Mississippi River WMO — Marie Creek Project Morton Salt — Streets Pearson Brothers — Street Sweeping City of St Paul — Lemay Lake Project, Repairs WSB & Associates — Trail Project $ 341,148.56 $ 2,615.50 $ 2,256.80 $ 12,500.00 $ 29,606.51 $ 9,287.70 $ 13,124.52 $ 5,250.75 Manual Checks Total $ 28,522.87 System Checks Total $ 458,982.41 Total for the list of claims for the June 18, 2013 city council meeting $ 487,505.28 RECOMMENDATION: Approval of the list of claims for June 18, 2013. CITY OF MENDOTA HEIGHTS Claims List MANUAL CHECKS 6/11/13MAN Account Comments DEPT Descr Amount page 62 06/13/13 10:44 AM Page 1 Search Name MENDOTA HEIGHTS, CITY OF G 15 -1155 CREDIT CARD TRANSFER G 01 -1155 CREDIT CARD TRANSFER Search Name MENDOTA HEIGHTS, CITY OF $5,000.00 $15,000.00 $20,000.00 $20,000.00 CITY OF MENDOTA HEIGHTS Claims List MANUAL CHECKS 6/13/13MAN Account Comments DEPT Descr Amount page 63 06/13/13 10:50 AM Page 1 Search Name AFFINITY PLUS G 01 -2073 06/07/2013 PAYROLL Search Name AFFINITY PLUS Search Name ASSURANT EMPLOYEE BENEFITS E 01- 4132 - 031 -30 JUNE 2013 PREMIUM Search Name ASSURANT EMPLOYEE BENEFITS Search Name HENNEPIN COUNTY WARRANTS G 01 -2030 WARRANT MONEY Search Name HENNEPIN COUNTY WARRANTS Search Name HOME DEPOT CREDIT SERVICES E 01- 4305 - 070 -70 E 01- 4330 - 215 -70 E 08- 4335 - 000 -00 E 01- 4305 - 070 -70 E 01- 4305 - 070 -70 E 15- 4305 - 060 -60 E 01- 4305 - 070 -70 E 08- 4335 - 000 -00 E 01- 4335 - 315 -30 E 01- 4336- 050 -50 E 01 -4335- 310 -50 E 01- 4335 - 310 -70 E 15- 4335 - 310 -60 E 01- 4335 - 310 -50 E 01- 4335 - 310 -70 E 15- 4335 - 310 -60 E 01- 4305 - 070 -70 OPERATING SUPPLIES - PARKS Search Name HOME DEPOT CREDIT SERVICES OPERATING SUPPLIES - PARKS SOCCER FIELDS - EQUIP. REPAIR BLDG MAINT. SUPPLIES - CITY HALL OPERATING SUPPLIES - PARKS OPERATING SUPPLIES - PARKS OPERATING SUPPLIES - SEWER OPERATING SUPPLIES - PARKS BLDG MAINT. SUPPLIES - CITY HALL BLDG MAINT. SUPPLIES - FIRE HALL SNOW REMOVAL DAMAGE REPAIRS BLDG MAINT. SUPPLIES - PW BLDG MAINT. SUPPLIES - PW BLDG MAINT. SUPPLIES - PW BLDG MAINT. SUPPLIES - PW BLDG MAINT. SUPPLIES - PW BLDG MAINT. SUPPLIES - PW Search Name I C M A RETIREMENT 457 G 01 -2072 G 01 -2073 06/07/2013 PAYROLL 06/07/2013 PAYROLL Search Name I C M A RE 1 IREMENT 457 Search Name MENDOTA HEIGHTS GENERAL ACCT. G 01 -1021 REPLENISH PEI 1Y CASH Search Name MENDOTA HEIGHTS GENERAL ACCT. Search Name NATIONWIDE RETIREMENT SOLUTION G 01 -2072 06/07/2013 PAYROLL Search Name NATIONWIDE RETIREMENT SOLUTION Search Name NSF MSF E 01 -4435- 200 -70 Search Name NSF MSF Search Name SELECT ACCOUNT E 05- 4131- 105 -15 E 01 -4131- 110 -10 E 01- 4131- 070 -70 G 01 -2071 SOFTBALL LEAGUE REGISTRATION JUNE 2013 H S A JUNE 2013 H S A JUNE 2013 H S A JUNE 2013 H S A CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS Fire Parks & Recreation Parks & Recreation Spec Fds Parks & Recreation Parks & Recreation Utility Enterprise Parks & Recreation Spec Fds Fire Road & Bridges Road & Bridges Parks & Recreation Utility Enterprise Road & Bridges Parks & Recreation Utility Enterprise Parks & Recreation Parks & Recreation Engineering Enterprise Administration Parks & Recreation $1,040.00 $1,040.00 $190.30 $190.30 $50.00 $50.00 $39.02 $139.03 $12.82 $69.32 $33.70 $37.37 $204.20 $6.07 $87.08 $219.14 $14.20 $14.20 $14.20 - $16.02 - $16.02 - $16.02 $96.48 $938.77 $469.92 $192.00 $661.92 $482.26 $482.26 $650.00 $650.00 $285.00 $285.00 $250.00 $326.94 $250.00 $2,472.32 CITY OF MENDOTA HEIGHTS Claims List MANUAL CHECKS 6113113MAN Account Comments DEPT Descr Amount E 01- 4131 - 020 -20 JUNE 2013 H S A CONTRIBUTIONS Police $750.00 Search Name SELECT ACCOUNT $4,049.26 Search Name TRACTOR SUPPLY E 01- 4305 - 070 -70 OPERATING SUPPLIES - PARKS Parks & Recreation $127.36 Search Name TRACTOR SUPPLY $127.36 Search Name UNITED WAY OF ST. PAUL G 01 -2070 06/07/2013 PAYROLL $48.00 Search Name UNITED WAY OF ST. PAUL $48.00 page 64 06/13/13 10:50 AM Page 2 $8,522.87 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06118/13PAY Account Comments DEPT Descr Amount Search Name 4 PAWS ANIMAL CONTROL LLC E 01- 4225 - 800 -90 MAY 2013 ANIMAL CONTROL Animal Control $387.63 Search Name 4 PAWS ANIMAL CONTROL LLC $387.63 Search Name AAA CREDIT SCREENING SERVICE E 01 -4490- 020 -20 PRE -EMP. SCREENING - MENDOTA Police $25.00 Search Name AAA CREDIT SCREENING SERVICE $25.00 Search Name ADVANTAGE SIGNS & GRAPHICS E 01 -4420- 050 -50 STREET SIGN MATERIALS Road & Bridges $1,277.16 Search Name ADVANTAGE SIGNS & GRAPHICS $1,277.16 Search Name AMERICAN FLEET SUPPLY E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS - PARKS Parks & Recreation $14.54 E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - STREETS Road & Bridges $24.57 Search Name AMERICAN FLEET SUPPLY $39.11 Search Name AMERICAN PROMOTIONAL INCENTIVE E 01 -4435- 200 -70 T- SHIRTS - PLAYGROUNDS Parks & Recreation $749.38 Search Name AMERICAN PROMOTIONAL INCENTIVE $749.38 Search Name ANCOM COMM INC E 01- 4305 - 030 -30 PAGER BATTERIES - FIRE DEPT Fire $193.44 Search Name ANCOM COMM INC $193.44 Search Name ANIMAL HUMANE SOCIETY E 01- 4435-200 -70 PLAYGROUNDS PROGRAM Parks & Recreation $90.00 Search Name ANIMAL HUMANE SOCIETY $90.00 Search Name ASCHENBRENER, MICHAEL E 01 -4490- 020 -20 SUPPLIES - POLICE WEEK Police $129.16 Search Name ASCHENBRENER, MICHAEL $129.16 Search Name ASPHALT SURFACE TECHNOLOGIES E 27 -4460- 787 -00 CROWN PT /OVERLOOK PROJECT Spec Fds $341,148.56 Search Name ASPHALT SURFACE TECHNOLOGIES $341,148.56 Search Name B C A - TRAINING & EDUCATION E 01 -4400- 020 -20 CLASS - CH. WILLSON Police $150.00 Search Name B C A - TRAINING & EDUCATION $150.00 Search Name B S N SPORTS E 01- 4330 - 215 -70 BALL FIELDS MAINTENANCE Parks & Recreation $1,898.09 Search Name B S N SPORTS $1,898.09 Search Name BANYON DATA SYSTEMS E 15- 4330 - 490 -60 BDS SUPPORT - UB Utility Enterprise $805.94 E 01- 4330 - 490 -10 BDS SUPPORT Administration $1,809.56 Search Name BANYON DATA SYSTEMS $2,615.50 Search Name BAUER BUILT E 01- 4330 - 490 -70 EQUIP. MAINTENANCE - PARKS Parks & Recreation $127.72 Search Name BAUER BUILT $127.72 Search Name BERTELSON TOTAL OFFICE SOLUTNS page 65 06/13/13 10:55 AM Page 1 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/18/13PAY Account Comments E 084490- 000 -00 OFFICE SUPPLIES - CITY HALL E 01- 4300 - 020 -20 OFFICE SUPPLIES - PD E 01- 4300 - 110 -10 OFFICE SUPPLIES - ADMIN E 01- 4300 - 110 -10 OFFICE SUPPLIES - ADMIN E 01- 4300 - 070 -70 OFFICE SUPPLIES - PARKS E 01- 4300 - 030 -30 OFFICE SUPPLIES - FIRE DEPT Search Name BERTELSON TOTAL OFFICE SOLUTNS Search Name BLUE TARP FINANCIAL E 01- 4305 - 070 -70 Search Name BLUE TARP FINANCIAL Search Name BOLTON & MENK INC E 27- 4220 - 774 -00 Search Name BOLTON & MENK INC Search Name BYWORDS PRINTING G 01 -2035 E 45- 4305 - 045 -45 Search Name BYWORDS PRINTING OPERATING SUPPLIES - PARKS HUNTER /ORCHARD PROJECT PUNCH CARDS - PAR3 - USE TAX PUNCH CARDS - PAR3 Search Name C. DARLENE OEHLKE, CAP E 01- 4220 - 110 -10 06/04/13 CITY COUNCIL MTG E 01- 4220 - 080 -80 05/28/13 PLANNING COMM. MTG Search Name C. DARLENE OEHLKE, CAP Search Name CAMELOT CLEANERS E 01 -4410- 020 -20 Search Name CAMELOT CLEANERS UNIFORMS CLEANING - PD Search Name CENTRAL IRRIGATION SUPPLY E 01- 4330 - 215 -70 IRRIGATION REPAIR PARTS - PARKS Search Name CENTRAL IRRIGATION SUPPLY Search Name DAKOTA COUNTY FINANCIAL SERVIC E 01- 4200 - 610 -70 JAN -MAR 2013 RADIO SUBSCRIBER FEES E 01- 4200 - 610 -50 JAN -MAR 2013 RADIO SUBSCRIBER FEES E 01- 4275 - 030 -30 JAN -MAR 2013 RADIO SUBSCRIBER FEES E 15- 4200 - 610 -60 JAN -MAR 2013 RADIO SUBSCRIBER FEES E 01- 4275 - 020 -20 JAN -MAR 2013 RADIO SUBSCRIBER FEES E 05- 4200 - 610 -15 JAN -MAR 2013 RADIO SUBSCRIBER FEES Search Name DAKOTA COUNTY FINANCIAL SERVIC Search Name DAKOTA COUNTY RECORDER E 01- 4220 - 080 -80 MAY 2013 ABSTRACT FEES Search Name DAKOTA COUNTY RECORDER Search Name DAKOTA COUNTY TECHNICAL COLLEG E 01 -4400- 020 -20 TRAINING CLASSES - PD Search Name DAKOTA COUNTY TECHNICAL COLLEG Search Name DESIGNER SIGN SYSTEMS E 01- 4490 - 109 -09 NAME PLATES - LEHMANN, PRATT Search Name DESIGNER SIGN SYSTEMS DEPT Descr Spec Fds Police Administration Administration Parks & Recreation Fire Parks & Recreation Spec Fds Golf Course Administration Planning Police page 66 06/13/13 10:55 AM Page 2 Amount Parks & Recreation Parks & Recreation Road & Bridges Fire Utility Enterprise Police Engineering Enterprise Planning Police $17.62 $77.74 $6.40 $18.46 $8.97 $23.50 $152.69 $192.78 $192.78 $1,801.10 $1,801.10 -$2.38 $36.98 $34.60 $162.40 $49.00 $211.40 $128.62 $128.62 $278.57 $278.57 $218.21 $381.86 $1,527.45 $54.55 $2,018.41 $163.65 $4,364.13 $46.00 $46.00 $450.00 $450.00 City Council $95.61 $95.61 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06118113PAY Account Comments DEPT Descr Amount page 67 06/13/13 10:55 AM Page 3 Search Name DISCOUNT STEEL, INC. E 01- 4336 - 050 -50 E 01- 4330 - 490 -70 Search Name DISCOUNT STEEL, INC. Search Name EDINA, CITY OF E 01 -4435- 200 -70 Search Name EDINA, CITY OF Search Name ELLIOT A. HERLAND E 01 -4435- 200 -70 Search Name ELLIOT A. HERLAND Search Name EMBLEM ENTERPRISES G 01 -2035 E 01 -4410- 020 -20 Search Name EMBLEM ENTERPRISES SNOW REMOVAL DAMAGE REPAIRS EQUIP. REPAIR PARTS - PARKS TENNIC CLINIC PERFORMANCE IN THE PARK PATCHES - PD - USE TAX PATCHES - PD Search Name EMERGENCY AUTOMOTIVE TECHNOLOG E 01- 4620- 050 -50 EQUIPMENT - NEW PW LOADER Search Name EMERGENCY AUTOMOTIVE TECHNOLOG Search Name ESS BROTHERS & SONS INC E 27 -4460- 787 -00 CROWN PT /OVERLOOK PROJECT E 29- 4330 - 000 -00 EQUIP. REPAIR - STORM SEWER Search Name ESS BROTHERS & SONS INC Search Name FASTENAL INDUSTRIAL & CONSTR E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS E 01 -4305- 050 -50 OPERATING SUPPLIES - SHOP Search Name FASTENAL INDUSTRIAL & CONSTR Search Name FERRELLGAS E 01 -4422- 050 -50 Search Name FERRELLGAS Search Name FLEETPRIDE G 01 -2035 E 01- 4330 - 490 -50 Search Name FLEETPRIDE Search Name G &K SERVICES E 15- 4335 - 310 -60 E 15- 4335 - 310 -60 E 01- 4335 - 310 -50 E 01- 4335 - 310 -70 E 01- 4335 - 310 -50 E 01- 4335 - 310 -70 Search Name G &K SERVICES Road & Bridges Parks & Recreation Parks & Recreation Parks & Recreation Police Road & Bridges Spec Fds Spec Fds Parks & Recreation Road & Bridges STREET MAINT. SUPPLIES Road & Bridges EQUIP. REPAIR PARTS - USE TAX EQUIP. REPAIR PARTS - STREETS Road & Bridges MAT SERVICE - PW GARAGE MAT SERVICE - PW GARAGE MAT SERVICE - PW GARAGE MAT SERVICE - PW GARAGE MAT SERVICE - PW GARAGE MAT SERVICE - PW GARAGE Search Name G.V. HEATING & AIR, INC. R 01 -3253 REFUND - OVERPAYMENT Search Name G.V. HEATING & AIR, INC. Search Name GARLOCK JR., NEIL Utility Enterprise Utility Enterprise Road & Bridges Parks & Recreation Road & Bridges Parks & Recreation $117.56 $112.22 $229.78 $30.00 $30.00 $250.00 $250.00 - $28.50 $443.03 $414.53 $827.80 $827.80 $219.09 $630.56 $849.65 $10.39 $39.24 $49.63 $154.97 $154.97 -$0.29 $4.48 $4.19 $36.40 $36.40 $36.40 $36.40 $36.40 $36.40 $218.40 $5.00 $5.00 Account E 01 -4400- 020 -20 Search Name GARLOCK JR., NEIL CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/18/13PAY Comments Search Name GERLACH SERVICE INC. TRAINING EQUIPMENT - PD E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS - PARKS E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS - PARKS Search Name GERLACH SERVICE INC. Search Name GOPHER STATE ONE CALL E 01- 4210 - 040 -40 MAY 2013 SERVICES Search Name GOPHER STATE ONE CALL Search Name GRAINGER E 01- 4335 - 310 -50 E 01- 4335 - 310 -70 E 15- 4335 - 310 -60 Search Name GRAINGER BLDG MAINT. EQUIPMENT BLDG MAINT. EQUIPMENT BLDG MAINT. EQUIPMENT Search Name GRANNIS & HAUGE, P.A. E 01- 4222 - 120 -20 MAY 2013 LEGAL SERVICES E 01- 4222 - 120 -20 MAY 2013 LEGAL SERVICES - TRAILS Search Name GRANNIS & HAUGE, P.A. Search Name GUN CLUB LAKE WMO E 29 -4404- 000 -00 2013 CITY CONTRIBUTION Search Name GUN CLUB LAKE WMO Search Name HANCO CORPORATION E 01- 4330 - 490 -70 E 01- 4335 - 310 -70 E 01- 4335 - 310 -50 E 01- 4330 - 490 -70 E 01- 4330 - 490 -70 E 01- 4330 - 490 -70 E 15- 4335 - 310 -60 Search Name HANCO CORPORATION Search Name HELENA CHEMICAL CO E 45- 4334 - 045 -45 E 01- 4330 - 215 -70 Search Name HELENA CHEMICAL CO Search Name HOSE INC E 01- 4330 - 490 -50 Search Name HOSE INC Search Name HUEBSCH E 08- 4335 - 000 -00 Search Name HUEBSCH EQUIP. REPAIR PARTS - PARKS BLDG MAINT. EQUIPMENT - PW BLDG MAINT. EQUIPMENT - PW EQUIP. REPAIR PARTS - PARKS EQUIP. REPAIR PARTS - PARKS EQUIP. REPAIR PARTS - PARKS BLDG MAINT. EQUIPMENT - PW CHEMICALS - PAR3 CHEMICALS - PARKS EQUIP. REPAIR PARTS - STREETS MAT SERVICE - CITY HALL Search Name INTERSTATE BATTERY SYSTEM E 01- 4330 - 460 -30 EQUIP. REPAIR PARTS - FIRE DEPT Search Name INTERSTATE BATTERY SYSTEM Search Name INTERSTATE POWER SYSTEMS DEPT Descr Police Parks & Recreation Parks & Recreation Code Enforcement/Insp Road & Bridges Parks & Recreation Utility Enterprise Police Police Spec Fds Parks & Recreation Parks & Recreation Road & Bridges Parks & Recreation Parks & Recreation Parks & Recreation Utility Enterprise Golf Course Parks & Recreation Road & Bridges Spec Fds Fire Amount $228.66 $228.66 $191.86 $191.66 $383.52 $557.30 $557.30 $2.34 $2.34 $2.33 $7.01 $5,356.00 $570.00 $5,926.00 $2,121.76 $2,121.76 - $45.68 $21.42 $21.42 $113.64 $24.94 $44.62 $21.41 $201.77 $139.72 $978.02 $1,117.74 $145.44 page 68 06/13/13 10:55 AM Page 4 $145.44 $184.50 $184.50 $65.25 $65.25 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06 /18 /13PAY Account Comments DEPT Descr Amount E 08- 4335 - 000 -00 GENERATOR REPAIRS - CITY HALL Spec Fds $701.13 Search Name INTERSTATE POWER SYSTEMS $701.13 Search Name IRON MOUNTAIN RECORDS MGMT E 01 -4490- 020 -20 MAY 2013 SHREDDING Police $32.88 E 01 -4490- 110 -10 MAY 2013 SHREDDING Administration $10.96 Search Name IRON MOUNTAIN RECORDS MGMT $43.84 Search Name JANI -KING OF MINNESOTA, INC. E 01 -4335- 315 -30 JUNE 2013 SERVICE - FIRE DEPT Fire $213.75 E 15- 4335 - 310 -60 JUNE 2013 SERVICE - PW GARAGE Utility Enterprise $71.25 E 01- 4335 - 310 -50 JUNE 2013 SERVICE - PW GARAGE Road & Bridges $71.25 E 01- 4335 - 310 -70 JUNE 2013 SERVICE - PW GARAGE Parks & Recreation $71.25 Search Name JANI -KING OF MINNESOTA, INC. $427.50 Search Name JRS ADVANCED RECYCLERS E 01- 4220 - 085 -85 2013 CLEAN -UP DAY Recycling $2,256.80 Search Name JRS ADVANCED RECYCLERS $2,256.80 Search Name KONE, INC. E 08- 4335 - 000 -00 ELEVATOR CONTRACT - CITY HALL Spec Fds $169.38 Search Name KONE, INC. $169.38 Search Name KREMER SERVICES, LLC E 15- 4330 - 490 -60 DOT INSPECTION Utility Enterprise $88.15 E 01- 4330 - 490 -50 DOT INSPECTION, EQUIP. REPAIR Road & Bridges $604.47 Search Name KREMER SERVICES, LLC $692.62 Search Name L E L S G 01 -2075 JULY 2013 UNION DUES $585.00 Search Name L E L S $585.00 Search Name LANGUAGE LINE SERVICES E 01- 4223 - 020 -20 INTERPRETER SERVICES Police $131.10 Search Name LANGUAGE LINE SERVICES $131.10 Search Name LES JONES ROOFING, INC. E 01- 4335 - 310 -70 BLDG MAINTENANCE - PW Parks & Recreation $121.33 E 15- 4335 - 310 -60 BLDG MAINTENANCE - PW Utility Enterprise $121.33 E 01- 4335 - 310 -50 BLDG MAINTENANCE - PW Road & Bridges $121.34 Search Name LES JONES ROOFING, INC. $364.00 Search Name LEXISNEXIS E 01- 4223 - 020 -20 MAY 2013 SERVICE Police $50.00 Search Name LEXISNEXIS $50.00 Search Name LILUE SUBURBAN NEWS E 01- 4240 - 110 -10 ADMIN. NOTICE - LIQUOR LIC. Administration $26.20 E 22- 4240 - 786 -00 NOTICE - TH 110/149 Spec Fds $478.75 E 15- 4240 - 060 -00 NOTICE - SEWER BIDS Spec Fds $58.95 E 01- 4240 - 080 -80 PLANNING NOTICES Planning $94.99 Search Name LILLIE SUBURBAN NEWS $658.89 Search Name LOWER MISSISSIPPI RIVER WMO E 29- 4220 - 000 -00 MARIE CREEK FEASIBILITY STUDY Spec Fds $12,500.00 page 69 06/13/13 10:55 AM Page 5 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/18/13PAY Account Comments DEPT Descr Amount page 70 06/13/13 10:55 AM Page 6 Search Name LOWER MISSISSIPPI RIVER WMO Search Name M T I DISTRIBUTING COMPANY E 45- 4330 - 490 -45 E 45- 4330 - 490 -45 E 01- 4330 - 490 -70 E 01- 4330 - 490 -70 E 45- 4334 - 045 -45 E 45- 4330 - 490 -45 Search Name M T I DISTRIBUTING Search Name MENARDS E 01- 4335 - 315 -30 E 01- 4336- 050 -50 E 01- 4305 - 050 -50 E 15- 4305 - 060 -60 E 01- 4305 - 050 -50 E 08- 4335 - 000 -00 Search Name MENARDS Search Name MILLER, JUSTIN E 01- 4490 - 109 -09 Search Name MILLER, JUSTIN Search Name MITCHELL1 E 05- 4300 - 105 -15 Search Name MITCHELL1 Search Name MN BENEFIT ASSN G 01 -2073 E 01 -4131- 050 -50 G 01 -2071 Search Name MN BENEFIT ASSN EQUIP. REPAIR PARTS - PAR3 EQUIP. REPAIR PARTS - PAR3 EQUIP. REPAIR PARTS - PARKS EQUIP. REPAIR PARTS - PARKS CHEMICALS - PAR3 EQUIP. REPAIR PARTS - PAR3 COMPANY BLDG MAINT. SUPPLIES - FIRE HALL SNOW REMOVAL DAMAGE REPAIRS OPERATING SUPPLIES - STREETS PAINTING SUPPLIES - LIFT STATION OPERATING SUPPLIES - STREETS BLDG MAINT. SUPPLIES - CITY HALL REIMBURSEMENT - ATTY MTG JUNE 2013 SERVICE JUNE 2013 PREMIUM JUNE 2013 PREMIUM JUNE 2013 PREMIUM Search Name MN ST ADMIN ITG TELECOM SRVCE E 01- 4220 - 133 -10 MAY 2013 WAN SERVICE E 01- 4223 - 020 -20 MAY 2013 WAN SERVICE Search Name MN ST ADMIN ITG TELECOM SRVCE Search Name MN TEAMSTERS LOCAL 320 G 01 -2075 JUNE 2013 UNION DUES Search Name MN TEAMSTERS LOCAL 320 Search Name MNPEA G 01 -2075 JULY 2013 UNION DUES Search Name MNPEA Search Name MORTON SALT E 01 -4421- 050 -50 E 01 -4421- 050 -50 E 01 -4421- 050 -50 Search Name MORTON SALT ROAD SALT ROAD SALT ROAD SALT Search Name NAPA AUTO PARTS E 45- 4330 - 490 -45 EQUIP. REPAIR PARTS - PAR3 Golf Course Golf Course Parks & Recreation Parks & Recreation Golf Course Golf Course Fire Road & Bridges Road & Bridges Utility Enterprise Road & Bridges Spec Fds City Council Engineering Enterprise Road & Bridges Administration Police Road & Bridges Road & Bridges Road & Bridges Golf Course $12,500.00 $207.15 $46.84 $236.33 $24.03 $891.24 $140.12 $1,545.71 $58.70 $34.65 $72.61 $183.47 $210.88 $10.90 $571.21 $50.13 $50.13 $158.13 $158.13 $14.95 $11.82 $46.34 $73.11 $148.00 $125.81 $273.81 $615.00 $615.00 $117.00 $117.00 $12,838.66 $14,722.63 $2,045.22 $29,606.51 $23.49 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06/18/13PAY Account Comments DEPT Descr Amount E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - STREETS Road & Bridges $138.34 E 01- 4305 - 050 -50 OPERATING SUPPLIES - STREETS Road & Bridges $135.36 E 01- 4305 - 050 -50 OPERATING SUPPLIES - STREETS Road & Bridges - $49.27 Search Name NAPA AUTO PARTS $247.92 Search Name NCPERS GROUP LIFE INS. G 01 -2071 JUNE 2013 PREMIUM $96.00 Search Name NCPERS GROUP LIFE INS. $96.00 Search Name NORTHWEST ASSOCIATED CONSULTAN E 01- 4221 - 135 -80 MAY 2013 RETAINER Planning $2,400.00 Search Name NORTHWEST ASSOCIATED CONSULTAN $2,400.00 Search Name NUSS TRUCK & EQUIPMENT E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - STREETS Road & Bridges $32.66 E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - STREETS Road & Bridges $639.10 Search Name NUSS TRUCK & EQUIPMENT $671.76 Search Name OFFICE DEPOT E 01- 4300 - 050 -50 OFFICE SUPPLIES - STREETS Road & Bridges $62.59 E 01- 4300 - 030 -30 OFFICE SUPPLIES - FIRE DEPT Fire $28.85 E 01 -4300- 030 -30 OFFICE SUPPLIES - FIRE DEPT Fire $9.05 E 01- 4300 - 110 -10 OFFICE SUPPLIES - ADMIN Administration $29.54 E 01- 4301- 114 -14 UPS BA i i tRY FOR PW SWITCH Info Tech $146.48 Search Name OFFICE DEPOT $276.51 Search Name OPTUMHEALTH FINANCIAL SERVICES E 01 -4490- 110 -10 MAY 2013 COBRA ADMIN. FEE Administration $45.00 Search Name OPTUMHEALTH FINANCIAL SERVICES $45.00 Search Name OREILLY AUTO /FIRST CALL E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - SHOP Road & Bridges $4.27 E 01- 4330-490 -50 EQUIP. REPAIR PARTS - SHOP Road & Bridges $4.44 E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS - SHOP Parks & Recreation $4.27 E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS - SHOP Parks & Recreation $17.06 E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - SHOP Road & Bridges $17.06 E 15-4330- 490 -60 EQUIP. REPAIR PARTS - SHOP Utility Enterprise $17.05 E 01- 4330 - 440 -20 EQUIP. REPAIR PARTS - PD Police $2.99 E 01- 4330 - 490 -70 EQUIP. REPAIR PARTS - SHOP Parks & Recreation $4.43 E 01- 4330 - 490 -50 EQUIP. REPAIR PARTS - STREETS Road & Bridges $8.54 Search Name OREILLY AUTO /FIRST CALL $80.11 Search Name OXYGEN SERVICE CO E 01 -4200- 610 -50 CYLINDER RENT - PW Road & Bridges $28.72 E 15- 4200 - 610 -60 CYLINDER RENT - PW Utility Enterprise $28.71 E 01- 4200 - 610 -70 CYLINDER RENT - PW Parks & Recreation $28.71 Search Name OXYGEN SERVICE CO $86.14 Search Name PEARSON BROS INC E 01 -4424- 050 -50 MAY 2013 SWEEPING - RENTAL Road & Bridges $9,287.70 Search Name PEARSON BROS INC $9,287.70 Search Name POVOLNY SPECIALTIES E 27 -4460- 787 -00 DAMAGE REPAIRS Spec Fds $300.00 Search Name POVOLNY SPECIALTIES $300.00 page 71 06/13/13 10:55 AM Page 7 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06118/13PAY Account Comments DEPT Descr Amount page 72 06/13/13 10:55 AM Page 8 Search Name RICHARD ALAN PRODUCTIONS E 01 -4435- 200 -70 SUMMER CONCERTS - TB BAND Search Name RICHARD ALAN PRODUCTIONS Search Name RIGID HITCH INCORPORATED E 01- 4620- 050 -50 NEW PW TRUCK EQUIPMENT Search Name RIGID HITCH INCORPORATED Search Name SAM S CLUB Parks & Recreation Road & Bridges $505.00 $505.00 $75.85 $75.85 E 45- 4310 - 210 -45 CONCESSIONS - PAR3 Golf Course $165.38 E 45- 4305 - 045 -45 SUPPLIES - PAR3 Golf Course $99.24 E 45- 4305 - 045 -45 EMP. TRAINING - PAR3 Golf Course $14.42 E 01 -4435- 200 -70 PLAYGROUNDS - SUPPLIES Parks & Recreation $79.44 E 45 -4310- 210 -45 CONCESSIONS - PAR3 Golf Course $31.87 E 01 -4435- 200 -70 PLAYGROUNDS - SUPPLIES Parks & Recreation $113.99 Search Name SAM S CLUB $504.34 Search Name SETS DESIGN INC E 01 -4410- 020 -20 Search Name SETS DESIGN INC UNIFORMS - PD Police $107.94 Search Name SIRCHIE FINGER PRINT LAB G 01 -2035 EVIDENCE SUPPLIES - PD - USE TAX E 01- 4305 - 020 -20 EVIDENCE SUPPLIES - PD Search Name SIRCHIE FINGER PRINT LAB Search Name SPRWS Police $107.94 - $22.35 $347.42 $325.07 E 15 -4425- 310 -60 MAY 2013 SERVICE - PW Utility Enterprise $17.90 E 01 -4425- 310 -50 MAY 2013 SERVICE - PW Road & Bridges $17.91 E 08 -4425- 000 -00 MAY 2013 SERVICE - CITY HALL Spec Fds $67.21 E 01 -4425- 315 -30 MAY 2013 SERVICE - PD Fire $91.17 E 01 -4425- 070 -70 MAY 2013 SERVICE - PARKS Parks & Recreation $84.59 E 01 -4425- 070 -70 MAY 2013 SERVICE - PARKS Parks & Recreation $69.67 E 01 -4425- 310 -70 MAY 2013 SERVICE - PW Parks & Recreation $17.90 Search Name SPRWS $366.35 Search Name ST. PAUL PUBLISHING COMPANY E 45 -4490- 045 -45 PAR3 ADVERTISING Golf Course $133.14 Search Name ST. PAUL PUBLISHING COMPANY $133.14 Search Name ST. PAUL, CITY OF E 03 -4460- 000 -00 E 76 -4460- 782 -00 E 76 -4460- 782 -00 Search Name ST. PAUL, CITY OF Search Name STREICHERS WATER UTILITY REPAIRS LEMAY LK TRL RECONSTR. PROJECT LEMAY LK TRL RECONSTR. PROJECT Spec Fds Spec Fds Spec Fds $2,402.51 $1,298.70 $9,423.31 $13,124.52 E 01- 4410- 020 -20 UNIFORMS - R. LAMBERT Police $262.96 E 01 -4410- 020 -20 UNIFORMS - R. LAMBERT Police $231.97 Search Name STREICHERS $494.93 Search Name TRI STATE BOBCAT E 01- 4305 - 050 -50 Search Name TRI STATE BOBCAT OPERATING SUPPLIES - STREETS Road & Bridges $218.43 $218.43 CITY OF MENDOTA HEIGHTS Claims List SYSTEM CHECKS 06118/13PAY Account Comments DEPT Descr Amount page 73 06/13/13 10:55 AM Page 9 Search Name UNIFORMS UNLIMITED E 01 -4410- 020 -20 UNIFORMS - T. ROSSE Police $161.50 Search Name UNIFORMS UNLIMITED $161.50 Search Name US BANK E 01- 4223 - 020 -20 JULY 2013 DCC PAYMENT Police $738.58 Search Name US BANK $738.58 Search Name VERIZON WIRELESS E 01- 4210 - 030 -30 MAY -JUNE 2013 CELL SERVICE Fire $165.24 Search Name VERIZON WIRELESS $165.24 Search Name WINTHROP & WEINSTINE E 76- 4220 - 782 -00 APR 2013 LEGAL SERVICES Spec Fds $59.00 E 01- 4221 - 120 -10 APR 2013 LEGAL SERVICES - RETAINER Administration $500.00 E 01- 4220 - 120 -10 APR 2013 LEGAL SERVICES Administration $59.00 E 15- 4220 - 120 -60 APR 2013 LEGAL SERVICES Utility Enterprise $59.00 E 01- 4220 - 120 -50 APR 2013 LEGAL SERVICES Road & Bridges $59.00 E 01- 4220 - 120 -80 APR 2013 LEGAL SERVICES Planning $379.11 Search Name WINTHROP & WEINSTINE $1,115.11 Search Name WIRTZ BEVERAGE MINNESOTA E 45- 4310 - 205 -45 BEVERAGES - PAR3 Golf Course $76.50 E 45- 4310 - 205 -45 BEVERAGES - PAR3 Golf Course $52.80 E 45- 4310 - 205 -45 BEVERAGES - PAR3 Golf Course - $74.80 Search Name WIRTZ BEVERAGE MINNESOTA $54.50 Search Name WSB & ASSOCIATES E 22- 4220 - 765 -00 Search Name WSB & ASSOCIATES SIBLEY MEMORIAL TRL PROJECT Spec Fds $5,250.75 $5,250.75 $458,982.41 CITY OF MENDOTA HEIGHTS TREASURER'S REPORT MAY 2013 V\V American Bank Checking Acco nt .02% Savings Account .02% Collateral - Bonds Gov't. Guar. Investments BALANCE COLLATERAL $30,336.59 $640.23 $30,976.82 $873,432.00 $250.000.00 Cost PV Saving Cert 2/1O/U4@}.3OY6Cherokee $13,952.59 $13.952.59 FHLB 1.00% 12/14/22 $510.000.00 $497,550.90 FHLB 1.00% 12/28/22 $700.000.00 $601.012.O0 FHLB 1.25% 03/23/23 $260.000.00 $256.817.60 FHLB 1.25% 03/27/23 $355.000.00 $253.016.10 Comenity Bank 0.35% 6/12/13 $100.000.00 $100.000.00 SaIIie Mae Bank 07596 08/14/13 $100.000.00 $100.017.00 Ally Bank 0.8096 06/14/13 $100.000.00 $100.019.00 Comenity Bank 0.40% 6/19/13 $100.000.00 $100.000.00 Mizuho Corp Bank 0.40% 6/26/13 $100.000.00 $100.017.00 Goldman Sachs Bank 1.50Y6 12/08/14 $245.000.00 $246.634.15 GE Capital Financial Inc 2.05% 11/4/16 $245.000.00 $251.049.05 American Express Cent Bank 2.05% 12/1/16 $245.000.00 $250.865.75 GE Capital Retail Bank 2.00% 7/6/18 $200.000.00 $205.080.00 Fidelity Institutional Government Portfouo (Piper) $1.819.484.78 $3.159.623.04 Gov�. Securities Fund 2896 Sold G/4 $433.187.00 $1.031.000.00 MMkt Fd (WF) $2.760.90327 TOTAL FUNDS AVAILABLE 5/31M3 Funds Available 1/1/2013 Rates Money Market MAY Bank 0.0296 5Yr. Tr. 1.0596 $8.218.504.46 $12.121.83917 page 74 5r. page 75 5s. 2013 Licensing List for City Council Type Gas Piping General HVAC Contractor Name Boe Plumbing Metro Air, Inc Travco Custom Baths & Remodeling, LLC Burnsville Heating & Air, Inc G.V. Heating & Air, Inc Metro Air, Inc Mitchell Heating, LLC Riccar Heating & Air South River Heating & Cooling, Inc Wednesday, June 12, 2013 Page 1 of 1 0 * CITY OF !i'IJ MENDOTA HEIGHTS page 76 iU. www.mendota- heights.com 1101 Victoria Curve I Mendota Heights, M 7a. 651.452.1850 phone 1 651.452.8940 DATE: June 18, 2012 TO: Mayor, City Council and City Administrator FROM: Kristen Schabacker, Finance Director SUBJECT: 2012 Audit Presentation BACKGROUND Kern DeWenter, Viere, Ltd. has completed the audit for 2012. The reports for 2012 are the Annual Report & Basic Financial Statements and the Communications Letter. These reports are included in your packet. Please bring both reports to the meeting for reference during the presentation. Caroline Stutsman from KDV will be at tonight's meeting to review the Annual Audit Report for 2012. BUDGET IMPACT There is no budget impact. RECOMMENDATION Accept the review and ask any questions you may have. CITY OF MENDOTA HEIGHTS Dakota County, Minnesota AUDITED FINANCIAL STATEMENTS For the Year Ended December 31, 2012 CITY OF MENDOTA HEIGHTS TABLE OF CONTENTS ELECTED OFFICIALS AND ADMINISTRATION ................................................................... 1 S REPORT ..................................................................................... 2 ION AND ANALYSIS ................................................................. 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position ...................................................................................................... 16 Statement of Activities ........................................................................................................... 17 Fund Financial Statements: Balance Sheet Governmental Funds ................................................................................... 18 Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds ........................................................................................................... 21 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ........................................................................................................... 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds ......................................... 24 Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund ................................................................................................. 25 Statement of Net Position Proprietary Funds ...................................................................... 26 Statement of Position, Expenses and Changes in Fund Net Position Proprietary Funds ................................................................................................................................... 27 Statement of Cash Flows Proprietary Funds ....................................................................... 28 Notes to the Financial Statements ................................................................................................ 29 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress Other Post Employment Benefits ............................................. 56 SUPPLEMENTARY INFORMATION Combining Balance Sheet Nonmajor Governmental Funds ..................................................... 58 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds ................................................................................................ 62 Combining Statement of Net Position Internal Service Funds ................................................. 65 Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds ............................................................................................................................ 66 Combining Statement of Cash Flows Internal Service Funds .................................................. 67 Detailed Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund ........................................................................................... 68 REPORT ON LEGAL COMPLIANCE ........................................................................................ 71 CITY OF MENDOTA HEIGHTS ELECTED OFFICIALS AND ADMINISTRATION December 31, 2012 Elected OfficialsPositionTerm Expires Sandra KrebsbachMayorDecember 31, 2012 Michael PovolnyCouncil MemberDecember 31, 2012 Jack VitelliCouncil MemberDecember 31, 2012 Ultan DugganCouncil MemberDecember 31, 2014 Liz PetschelCouncil MemberDecember 31, 2014 Administration Justin MillerCity AdministratorAppointed Lorri SmithCity ClerkAppointed Kristen SchabackerFinance DirectorAppointed 1 INDEPENDENT AUDITORS REPORT Honorable Mayor and Members of the City Council City of Mendota Heights Mendota Heights, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Mendota Heights, Minnesota, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Mendota Heights, Minnesota, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Implementation of GASB 63 and GASB 65 As discussed in Note 18 to the financial statements, the City has adopted the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position and GASB No. 65, Items Previously Reported as Assets and Liabilities. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that and Analysis, which follows this report letter, and the Schedule of Funding Progress Other Post Employment Benefits on page 56 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for cons statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise s basic financial statements. The accompanying supplementary information identified in the Table of Contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. KERN, DEWENTER, VIERE, LTD. Bloomington, Minnesota May 29, 2013 3 (THIS PAGE LEFT BLANK INTENTIONALLY) 4 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 As management of the City of Mendota Heights, Minnesota (the City), we offer readers of the financial statements this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2012. FINANCIAL AND DEVELOPMENT HIGHLIGHTS The assets of the City exceeded liabilities at the close of the most recent year by $ 53,258,038 (net position). Of this amount, $ 9,949,373 (unrestricted net position) may be used to meet the City ongoing obligations to citizens and creditors. The Cityt position increased by $ 1,208,237. Governmental activities resulted in an increase of net position of $ 1,259,223. Business activities had net position decrease by $ 50,986. As of the close of the current year, the Citynding fund balance of $ 11,406,025, a decrease of $ 809,112 from the prior year. At the end of the year the General Fund had an unassigned fund balance of $ 5,980,182, or 91.34% of total General Fund expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis are intended to serve as an introduction to the Csic financial statements. The C-wide financial statements, 2) fund financial statements, and 3) Notes to the Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the C-sector business. The Statement of Net Position presents information on all of the C difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents informposition changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) and from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety and public works. The business-type activities of the City include sewer, storm water and the Par 3 golf course. The government-wide financial statements can be found on pages 16 and 17 of this report. 5 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 OVERVIEW OF THE FINANCIAL STATEMENTS Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resource, as well as on balances of spendable resources available at the end of the year. Such -term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statement. By doing so, readers may better understand the long-term impact of the C-term financial decisions. Both the Governmental Fund Balance Sheet and Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains four individual major governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances for the following major funds: General Fund Special Assessments Debt Service Fund Street Capital Projects Fund Special Assessment Capital Project Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for those funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 18 through 25 of this report. 6 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 OVERVIEW OF THE FINANCIAL STATEMENTS Proprietary Funds The City maintains three enterprise funds and three internal service funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, storm water operations and Par 3 golf course. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the following funds: Enterprise funds: Sewer Utility Fund Storm Water Utility Fund Par 3 Golf Course Internal service funds are an accounting device used to accumulate and allocate costs internally among the ity uses internal service funds to account for compensated absences, city hall and engineering functions. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 26 through 28 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements can be found on 29 through 53 of this report. Other Information The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on budgetary comparisons. Combining and individual fund statements and schedules can be found on pages 57 through 67 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a us financial position. In the case of the City, assets exceeded liabilities by $ 53,258,038 at the close of the most recent year. 7 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS The largest portion of the Cposition ($ 38,174,373 or 71.68 %) reflects its investment in capital assets (e.g. land, buildings, machinery and equipment, sewer main lines and storm sewers and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the C noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net Position Governmental ActivitiesBusiness-Type ActivitiesTotals 201220112012201120122011 ASSETS Current and Other Assets$15,507,155 $16,349,905 $ 1,310,760 $ 1,426,701 $16,817,915 $17,776,606 Capital Assets37,461,79434,982,46214,656,57114,541,16952,118,36549,523,631 Total Assets$52,968,949 $51,332,367 $15,967,331 $15,967,870 $68,936,280 $67,300,237 LIABILITIES Long-Term Liabilities Outstanding$13,499,459 $11,530,088 $ 19,723 $ 13,621 $13,519,182 $11,543,709 Other Liabilities2,054,2423,552,111104,81860,4732,159,0603,612,584 Total Liabilities$15,553,701 $15,082,199 $ 124,541 $ 74,094 $15,678,242 $15,156,293 NET POSITION Net Investment in Capital Assets$26,309,852 $25,623,862 $14,656,571 $14,541,169 $38,174,373 $37,098,631 Restricted 5,134,292 5,423,730 - - 5,134,292 5,423,730 Unrestricted 5,971,104 5,202,576 1,186,219 1,352,607 9,949,373 9,621,583 Total Net Position$37,415,248 $36,250,168 $15,842,790 $15,893,776 $53,258,038 $52,143,944 position ($ 5,134,292) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($ 9,949,373) s ongoing obligations to citizens and creditors. At the end of the current year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. 8 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS Governmental Activities Governmental activities increased the Cposition by $ 1,259,223. Key elements of this increase are as follows: Position 9 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS Below are specific graphs which provide comparisons of the governmental activities revenues and expenditures: Governmental Activities-Revenues Charges for Services Unrestricted Investment 15% Earnings Operating Grants and 1% Contributions 4% Capital Grants and Contributions 18% Taxes 62% Governmental Activities -Expenditures Interest and Fees on Long-Term Debt General Government 5% 21% Public Works 34% Public Safety 40% 10 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS Business-Type Activities Business-type activities decreased net position by $ 50,986. Below are graphs showing the business- type activities revenue and expense comparisons: Business-Type Activities -Revenues Unrestricted Investment Earnings Other General Revenue 1% Less than 1% Charges for Services 99% Business-Type Activities -Expenses Par 3 Golf Course 9% Storm Water 9% Sewer 82% 11 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental Funds on near-term inflows, outflows and net resources available for spending at the end of the year. of $ 11,406,025. Nonspendable fund balances are already allocated for prepaid items ($ 150,517) and inventory ($ 39,825). Approximately 22.99% ($ 2,622,363) constitutes restricted fund balance. Restricted fund balance would include debt service, special park and street light district funds, all of which have specific uses for the funds they receive. The City also has a committed fund balance of $ 522,653. This represents fund balance that is to be used for the water system and civil defense needs. The City has assigned fund balance of $ 2,160,580 (18.94%). This number represents the fund balances for the capital projects that the City has ongoing and an amount allocated for insurance reserves. The remaining category of fund balance is the unassigned fund balance. The City has $ 5,910,087 of unassigned fund balance which is approximately 51.82% of the combined governmental fund balance at December 31, 2012. The General Fund increased by $ 332,927 in 2012. Revenues were greater than anticipated while expenditures remained within budgeted amounts. The Special Assessments Debt Service Fund decreased by $ 1,295,928 in 2012. This Fund paid off two bond issues in February of 2012. This accounted for a majority of the decrease in this Fund. The Street Capital Project Fund increased by $ 626,398. This fund accounted for the costs and resources with the Marie Avenue, Mendota Heights Road, Diane Road and Lemay Lake street projects. The Special Assessment Capital Project Fund decreased by $ 92,279. This Fund accounted for the costs associated with the Highway 110 and Dodd Road Safety Improvements project. The nonmajor governmental funds decreased by $ 380,230. These funds received revenues from water surcharges and cell tower rent. The Water Tower Capital Project Fund and the Infrastructure Fund both made transfers to the Street Capital Projects Fund to be used for the current year street projects. These transfers resulted in a decrease for the nonmajor governmental funds. Proprietary Funds -wide financial statements, but in more detail. The unrestricted net position in the respective proprietary funds are sewer $ 1,006,709, storm water $ 161,003 and $ 18,507 for the Par 3 golf course. The Sewer Utility Fund had an increase in net position in 2012 of $ 53,657, the Storm Water Utility Fund had a decrease in net position in 2012 of $ 95,519 and the Par 3 Golf Course Fund had a decrease in net position of $ 9,124. 12 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 BUDGETARY HIGHLIGHTS General Fund The General Fund budget was not amended during 2012. During the year, revenues were more than budgetary estimates by $ 470,044, and expenditures were less than budgetary estimates by $ 26,294. The General Fund had higher than budgeted revenues for most categories. The City received higher than anticipated revenues for licenses and fees due to increased building activity. Intergovernmental revenue was greater than budgeted due to the money the City received from FEMA to cover expenses related to the June storm cleanup. These two items account for a majority of the increase in revenues. The net public safety and public works functions both had expenditures under budgeted amounts. The general government function expenditures were greater than budgeted. The administration budget accounted for the Laserfiche purchase that was originally budgeted for in 2011, but not purchased until 2012. This purchase accounts for the general government function exceeding budgeted amounts. The public safety function had expenses less than budgeted. The police department had increased labor costs and fuel costs which made the expenditures for the police department greater than budgeted. The fire department had lower than budgeted expenditures. The public works function also had expenditures that were lower than budgeted amounts. The street department and parks department both had lower than anticipated expenditures. The code enforcement department had expenditures that were slightly above projected amounts. In total, the expenditures for the General Fund were $ 26,294 under budgeted amounts. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The C December 31, 2012, amounts to $ 52,118,365 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery and equipment, sewer main lines and storm sewers and infrastructure. Capital Assets (Net of Depreciation ) Governmental ActivitiesBusiness-Type ActivitiesTotals 201220112012201120122011 Land$ 6,123,406$ 6,117,082$ 2,531,475$ 2,531,475$ 8,654,881$ 8,648,557 Construction in Progress3,335,8262,481,616 - - 3,335,8262,481,616 Buildings and Structures2,833,7852,863,490169,821171,2383,003,6063,034,728 Machinery and Equipment1,773,6371,926,53456,94171,3871,830,5781,997,921 Other Improvements738,494754,752 - - 738,494754,752 Sewer Main Lines and Storm Sewers - - 11,898,33411,767,06911,898,33411,767,069 Infrastructure22,656,64620,838,988 - - 22,656,64620,838,988 Total Capital Assets$ 37,461,794$ 34,982,462$ 14,656,571$ 14,541,169$ 52,118,365$ 49,523,631 A 13 CITY OF MENDOTA HEIGHTS ION AND ANALYSIS December 31, 2012 CAPITAL ASSET AND DEBT ADMINISTRATION Long-Term Debt At the end of the current year, the City had total long-term debt outstanding of $ 13,920,000, an increase of $ 440,000 from 2011. $ 13,920,000 is for general obligation (G.O.) improvement debt which is supported in part by special assessments. Outstanding Debt G.O. improvement bonds, G.O. bonds and revenue bonds: Governmental Activities 20122011 G.O. Improvement Bonds$ 11,085,000$ 10,415,000 G.O. Bonds 2,835,000 3,065,000 Total$ 13,920,000$ 13,480,000 The City maintains an Aa1 . Minnesota Statutes limit the amount of G.O. debt a Minnesota city may issue to 2% of total estimated market value. The current debt limitation for the City is $ 32,188,068. Of the Cs outstanding debt, $ 2,835,000 is counted within the statutory limitation. Additional information on the C-term debt can be found in Note 6. Ec In 2013, the taxable market value for the City was $ 1,609,403,415. This represents a decrease of 3.46 % from 2012. The City is expecting an increase in taxable market value for 2014. The increase in taxable market value will be the first increase in four years. These factors were consbudget for 2013. Requests for Information This financial report is designed to provide a general overview of the C all those with report or requests for additional financial information should be addressed to the Director of Finance, 1101 Victoria Curve, Mendota Heights, Minnesota 55118. 14 BASIC FINANCIAL STATEMENTS 15 CITY OF MENDOTA HEIGHTS STATEMENT OF NET POSITION December 31, 2012 Governmental Business-Type ActivitiesActivitiesTotal ASSETS Cash and Investments (Including Cash Equivalents)$ 12,017,326$ 700,384$ 12,717,710 Property Tax Receivable 126,778 - 126,778 Accounts Receivable 28,299 443,816 472,115 Interest Receivable 12,379 1,015 13,394 Due from Other Governments 331,888 64 331,952 Special Assessments Receivable: Delinquent 9,461 7,585 17,046 Unearned 2,719,125 59,632 2,778,757 Inventories 39,825 - 39,825 Prepaid Items 172,074 98,264 270,338 Land Held for Resale 50,000 - 50,000 Capital Assets (Net of Accumulated Depreciation): Land and Improvements 6,123,406 2,531,475 8,654,881 Construction in Progress 3,335,826 - 3,335,826 Capital Assets being Depreciated: Infrastructure 22,656,646 11,898,334 34,554,980 Buildings and Structures 2,833,785 169,821 3,003,606 Other Improvements 738,494 - 738,494 Machinery and Equipment 1,773,637 56,941 1,830,578 Total Assets$ 52,968,949$ 15,967,331$ 68,936,280 LIABILITIES AND NET ASSETS Liabilities Accounts Payable$ 533,495$ 70,083$ 603,578 Contracts Payable 73,048 - 73,048 Due to Other Governments 20,769 11,618 32,387 Salaries and Benefits Payable 171,910 7,722 179,632 Interest Payable 173,490 - 173,490 Developers' Escrow Deposits 8,582 - 8,582 Bond Principal Payable: Payable Within One Year 710,000 - 710,000 Payable After One Year 13,233,992 - 13,233,992 Compensated Absences Payable: Payable Within One Year 362,948 15,395 378,343 Payable After One Year 122,109 10,745 132,854 Other Post Employment Benefits (OPEB) Payable 143,358 8,978 152,336 Total Liabilities 15,553,701 124,541 15,678,242 Net Position Net Investment in Capital Assets 26,309,852 14,656,571 38,174,373 Restricted for: Debt Service 4,893,634 - 4,893,634 Street Light Maintenance 18,839 - 18,839 Park Dedication 221,819 - 221,819 Unrestricted 5,971,104 1,186,219 9,949,373 Total Net Position 37,415,248 15,842,790 53,258,038 Total Liabilities and Net Position$ 52,968,949$ 15,967,331$ 68,936,280 The Notes to the Financial Statements are an integral part of this statement.16 CITY OF MENDOTA HEIGHTS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2012 Net (Expense) Revenues Program Revenues and Changes in Net Position Operating Capital Grants Charges for Grants and and Governmental Business-Type ExpensesServicesContributionsContributionsActivitiesActivities Functions/ProgramsTotal Governmental Activities General Government$ 1,822,388$ 194,571 $ 15,787$ 37,500 $ (1,574,530)$ - $ (1,574,530) Public Safety 3,544,198 568,409 200,621 - (2,775,168) - (2,775,168) Public Works 2,966,498 761,596 128,878 1,762,606 (313,418) - (313,418) Interest on Long-Term Debt 466,438 - - - (466,438) - (466,438) Total Governmental Activities 8,799,522 1,524,576 345,286 1,800,106 (5,129,554) - (5,129,554) Business-Type Activities Sewer 1,499,556 1,526,285 - - - 26,729 26,729 Storm Water 175,413 275,282 - - - 99,869 99,869 Par 3 Golf Course 161,532 146,686 - - - (14,846) (14,846) Total Business-Type Activities 1,836,501 1,948,253 - - - 111,752 111,752 Total Governmental and Business-Type Activities$ 10,636,023$ 3,472,829 $ 345,286$ 1,800,106 (5,129,554) 111,752 (5,017,802) General Revenues Property Taxes 6,126,869 - 6,126,869 Unrestricted Investment Earnings 77,966 15,584 93,550 Other General Revenue - 5,620 5,620 Total General Revenues 6,204,835 21,204 6,226,039 Transfers 183,942 (183,942) - Change in Net Position 1,259,223 (50,986) 1,208,237 Net Position - Beginning 36,250,168 15,893,776 52,143,944 Change in Accounting Principle (94,143) - (94,143) Net Position - Beginning, Restated 36,156,025 15,893,776 52,049,801 Net Position - Ending$ 37,415,248$ 15,842,790$ 53,258,038 The Notes to the Financial Statements are an integral part of this statement. CITY OF MENDOTA HEIGHTS BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2012 Special Assessments Street Capital General FundDebt ServiceProjects ASSETS Cash and Investments (Including Cash Equivalents)$ 6,282,527$ 1,968,249$ 882,418 Taxes Receivable - Delinquent 107,907 9,843 - Special Assessments Receivable: Delinquent 162 9,299 - Deferred 656 2,658,903 34,376 Accounts Receivable 14,331 - - Interest Receivable 5,958 2,799 264 Due from Other Funds - - - Due from Other Governments 252,320 22,848 - Inventories 39,825 - - Prepaid Items 149,885 - - Land Held for Resale - - - TOTAL ASSETS$ 6,853,571$ 4,671,941$ 917,058 LIABILITIES Accounts Payable$ 164,240$ -$ 312,347 Contracts Payable 800 - 72,248 Due to Other Funds - - - Due to Other Governments 20,685 - - Salaries and Benefits Payable 151,885 - - Developers' Escrow Deposits 8,582 - - Total Liabilities 346,192 - 384,595 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue 108,725 2,678,045 34,376 FUND BALANCES Nonspendable 189,710 - - Restricted - 1,993,896 - Committed - - - Assigned 228,762 - 498,087 Unassigned 5,980,182 - - Total Fund Balances 6,398,654 1,993,896 498,087 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES$ 6,853,571$ 4,671,941$ 917,058 The Notes to the Financial Statements are an integral part of this statement. 18 Special Other Total Assessment Governmental Governmental Capital ProjectFundsFunds $ -$ 2,438,645$ 11,571,839 - 9,028 126,778 - - 9,461 22,840 2,350 2,719,125 8,040 5,928 28,299 92 3,144 12,257 - 113,921 113,921 51,391 5,329 331,888 - - 39,825 - 632 150,517 - 50,000 50,000 $ 82,363$ 2,628,977$ 15,153,910 $ 4,155$ 43,658$ 524,400 - - 73,048 113,921 - 113,921 - - 20,685 - - 151,885 - - 8,582 118,076 43,658 892,521 22,840 11,378 2,855,364 - 632 190,342 - 628,467 2,622,363 - 522,653 522,653 - 1,433,731 2,160,580 (58,553) (11,542) 5,910,087 (58,553) 2,573,941 11,406,025 $ 82,363$ 2,628,977$ 15,153,910 19 (THIS PAGE LEFT BLANK INTENTIONALLY) 20 CITY OF MENDOTA HEIGHTS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION - GOVERNMENTAL FUNDS December 31, 2012 Total Fund Balances - Governmental Funds$ 11,406,025 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. Cost of Capital Assets 57,409,631 Less Accumulated Depreciation (20,418,832) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: General Obligation (G.O.) Bond Principal Payable (13,920,000) Unamortized Bond Premium (23,992) OPEB Payable (125,630) Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property Taxes 126,778 Special Assessments 9,461 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Deferred Special Assessments 2,719,125 Governmental funds do not report a liability for accrued interest until due and payable. (173,490) Internal service funds are used by management to charge the cost of engineering, compensated absences and City Hall expenses to individual funds. The net position of the funds are considered governmental and included in the government-wide Statement of Net Position. 406,172 Total Net Position - Governmental Activities $ 37,415,248 The Notes to the Financial Statements are an integral part of this statement. 21 CITY OF MENDOTA HEIGHTS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2012 Special Assessments Street Capital General FundDebt ServiceProjects REVENUES Property Taxes$ 5,311,645$ 418,984$ - Special Assessments 1,621 525,528 434,431 Licenses and Permits 419,702 - - Intergovernmental 457,668 - 706,759 Charges for Services 539,068 - - Fines and Forfeitures 73,262 3,779 19 Miscellaneous: Investment Income 32,711 15,363 1,455 Other 60,355 - - Total Revenues 6,896,032 963,654 1,142,664 EXPENDITURES Current General Government 1,263,073 - - Public Safety 3,454,423 - - Public Works 1,712,300 - - Debt Service Principal - 1,955,000 - Interest and Other Charges - 356,766 - Capital Outlay General Government 44,616 - - Public Safety 41,989 - - Public Works 30,438 - 3,967,167 Total Expenditures 6,546,839 2,311,766 3,967,167 Excess of Revenues Over (Under) Expenditures 349,193 (1,348,112) (2,824,503) OTHER FINANCING SOURCES (USES) Issuance of Debt - 2,630,000 - Bond Premium - 24,096 - Transfers In 135,750 - 3,522,066 Transfers Out (152,016) (2,601,912) (71,165) Total Other Financing Sources (Uses) (16,266) 52,184 3,450,901 Net Change in Fund Balances 332,927 (1,295,928) 626,398 FUND BALANCES Beginning of Year 6,065,727 3,289,824 (128,311) End of Year$ 6,398,654$ 1,993,896$ 498,087 The Notes to the Financial Statements are an integral part of this statement. 22 Special Other Total Assessment Governmental Governmental Capital ProjectFundsFunds $ -$ 422,092$ 6,152,721 6,248 2,679 970,507 - - 419,702 - 37,838 1,202,265 - 285,139 824,207 - - 77,060 506 17,262 67,297 - 138,373 198,728 6,754 903,383 9,912,487 - 175,518 1,438,591 - - 3,454,423 - 92,148 1,804,448 - 235,000 2,190,000 - 110,055 466,821 - - 44,616 - - 41,989 170,198 166,437 4,334,240 170,198 779,158 13,775,128 (163,444) 124,225 (3,862,641) - - 2,630,000 - - 24,096 71,165 340,716 4,069,697 - (845,171) (3,670,264) 71,165 (504,455) 3,053,529 (92,279) (380,230) (809,112) 33,726 2,954,171 12,215,137 $ (58,553)$ 2,573,941$ 11,406,025 23 CITY OF MENDOTA HEIGHTS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2012 Net Change in Fund Balances - Governmental Funds $ (809,112) Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. 4,415,603 Capital Outlays Depreciation Expense (1,661,911) (10,496) Loss on Sale of Disposed Assets Assets Contributed to Enterprise Funds (207,291) OPEB are not reported as expenditures in the governmental funds because they do not require the use of current financial resources; instead, they are (43,897) expensed in the Statement of Activities. Principal payments on long-term debt are recognized as expenditures in the governmental funds but have no effect on net position in the Statement of Activities. 2,190,000 Premiums on the issuance of long-term debt provide current financial resources to governmental funds and have no effect on net position. These amounts are reported in the governmental funds as an other financing source and constitute long-term liabilities in the Statement of Net Position. (24,096) Premiums are recognized when debt is issued in the governmental funds but amortized over the life 104 of the debt in the Statement of Activities. 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 use of current financial resources. In the Statement of Activities, however, interest expense 279 is recognized as the interest accrues, regardless of when it is due. Proceeds from long-term debt are recognized as an other financing source in the governmental funds but have no effect on net assets in the Statement of Activities. (2,630,000) Bonds Payable Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. (48,353) Activities of the internal service funds are presented separately from the governmental funds. However, the functions, from a government-wide perspective, are governmental. 88,393 Change in Net Position - Governmental Activities $ 1,259,223 The Notes to the Financial Statements are an integral part of this statement.24 CITY OF MENDOTA HEIGHTS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2012 Budgeted AmountsVariance with Final Budget - OriginalActual and FinalAmountsOver (Under) REVENUES Property Taxes$ 5,262,435$ 5,311,645$ 49,210 Special Assessments - 1,621 1,621 Licenses and Permits 206,300 419,702 213,402 Intergovernmental 316,090 457,668 141,578 Charges for Services 512,363 539,068 26,705 Fines and Forfeitures 79,500 73,262 (6,238) Miscellaneous Revenues: Investment Income 39,300 32,711 (6,589) Other 10,000 60,355 50,355 Total Revenues 6,425,988 6,896,032 470,044 EXPENDITURES Current General Government 1,265,300 1,263,073 (2,227) Public Safety 3,433,391 3,454,423 21,032 Public Works 1,764,442 1,712,300 (52,142) Capital Outlay General Government - 44,616 44,616 Public Safety 77,500 41,989 (35,511) Public Works 32,500 30,438 (2,062) Total Expenditures 6,573,133 6,546,839 (26,294) Excess of Revenues Over (Under) Expenditures (147,145) 349,193 496,338 OTHER FINANCING SOURCES (USES) Transfers In 135,750 135,750 - Transfers Out - (152,016) (152,016) Total Other Financing Sources (Uses) 135,750 (16,266) (152,016) Net Change in Fund Balances$ (11,395) 332,927$ 344,322 FUND BALANCES Beginning of Year 6,065,727 End of Year$ 6,398,654 The Notes to the Financial Statements are an integral part of this statement.25 CITY OF MENDOTA HEIGHTS STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2012 Storm Water Par 3 Golf Internal Sewer UtilityUtilityCourseTotalService Funds ASSETS Current Assets Cash and Investments$ 583,577$ 99,655$ 17,152$ 700,384$ 445,487 Special Assessment Receivable: Delinquent 7,585 - - 7,585 - Deferred 58,687 945 - 59,632 - Accounts Receivable 443,760 - 56 443,816 - Interest Receivable 560 438 17 1,015 122 Due from Other Funds - 68,695 - 68,695 70,561 Due from Other Governments 64 - - 64 - Prepaid Expenses 94,241 308 3,715 98,264 21,557 Total Current Assets 1,188,474 170,041 20,940 1,379,455 537,727 Noncurrent Assets Capital Assets: Land - - 2,531,475 2,531,475 25,000 Buildings - - 208,490 208,490 1,657,769 Sewer Main Lines and Storm Sewers 13,487,705 2,790,146 - 16,277,851 - Improvements Other than Buildings - - - - 27,581 Machinery and Equipment 125,206 - 43,851 169,057 99,009 Total Capital Assets 13,612,911 2,790,146 2,783,816 19,186,873 1,809,359 Less Accumulated Depreciation (4,203,625) (258,693) (67,984) (4,530,302) (1,338,364) Net Capital Assets 9,409,286 2,531,453 2,715,832 14,656,571 470,995 Total Assets$ 10,597,760$ 2,701,494$ 2,736,772 $ 16,036,026 $ 1,008,722 LIABILITIES AND NET POSITION Current Liabilities Accounts Payable$ 63,708$ 6,225$ 150$ 70,083$ 9,095 Salaries and Benefits Payable 5,798 875 1,049 7,722 20,025 Due to Other Funds 68,695 - - 68,695 70,561 Due to Other Governments 10,223 750 645 11,618 84 Noncurrent Liabilities Due Within One Year 15,395 - - 15,395 362,948 Total Current Liabilities 163,819 7,850 1,844 173,513 462,713 Noncurrent Liabilities Compensated Absences 26,140 - - 26,140 485,057 OPEB Payable 7,201 1,188 589 8,978 17,728 Less Amount Due Within One Year (15,395) - - (15,395) (362,948) Total Noncurrent Liabilities 17,946 1,188 589 19,723 139,837 Total Liabilities 181,765 9,038 2,433 193,236 602,550 Net Position Net Investment in Capital Assets 9,409,286 2,531,453 2,715,832 14,656,571 470,995 Unrestricted 1,006,709 161,003 18,507 1,186,219 (64,823) Total Net Position 10,415,995 2,692,456 2,734,339 15,842,790 406,172 Total Liabilities and Net Position$ 10,597,760$ 2,701,494$ 2,736,772 $ 16,036,026 $ 1,008,722 The Notes to the Financial Statements are an integral part of this statement.26 CITY OF MENDOTA HEIGHTS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS For the Year Ended December 31, 2012 Storm Water Par 3 Golf Internal Sewer UtilityUtilityCourseTotalService OPERATING REVENUES Charges for Services$ 1,481,624$ 274,587$ 146,603$ 1,902,814 $ 900,235 OPERATING EXPENSES Wages and Salaries 126,293 18,075 49,443 193,811 421,730 Employee Benefits 53,658 7,932 15,361 76,951 164,396 Materials and Supplies 13,251 2 3,008 16,261 9,741 Repairs and Maintenance 87,689 64,719 13,073 165,481 - Professional Services 22,410 35,686 39,122 97,218 16,090 Insurance 4,862 - 2,246 7,108 10,722 Utilities 24,838 - 9,801 34,639 40,745 Depreciation 147,478 27,901 14,142 189,521 64,576 Travel 59 - 296 355 1,015 Equipment - - - - 270 Miscellaneous 18,098 21,098 15,040 54,236 85,026 Sewer Charges - MCES 1,000,920 - - 1,000,920 - Total Operating Expenses 1,499,556 175,413 161,532 1,836,501 814,311 Operating Income (Loss) (17,932) 99,174 (14,929) 66,313 85,924 NONOPERATING REVENUES Investment Income 13,078 2,404 102 15,584 10,669 Fines and Forfeitures 286 - - 286 - Special Assessments 31,612 145 - 31,757 - Other Income 12,763 550 5,703 19,016 - Total Nonoperating Revenues 57,739 3,099 5,805 66,643 10,669 Change in Net Position before Capital Contributions and Transfers 39,807 102,273 (9,124) 132,956 96,593 Capital Contributions - 207,291 - 207,291 - Transfers In 25,000 - - 25,000 - Transfers Out (11,150) (405,083) - (416,233) (8,200) Change in Net Position 53,657 (95,519) (9,124) (50,986) 88,393 NET POSITION Beginning of Year 10,362,338 2,787,975 2,743,463 15,893,776 317,779 End of Year$ 10,415,995$ 2,692,456$ 2,734,339$ 15,842,790 $ 406,172 Net Changes in the Net Position Reported Above $ (50,986) Amounts Reported for Business-Type Activities in the Statement of Activities are Different because: Transfers In of Capital Assets from Governmental Activities 207,291 Governmental Activities Contribution Revenue Reported Above (207,291) Change in Net Position of Business-Type Activities $ (50,986) The Notes to the Financial Statements are an integral part of this statement. 27 CITY OF MENDOTA HEIGHTS STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS For the Year Ended December 31, 2012 Storm Water Par 3 Golf Internal Sewer UtilityUtilityCourseTotalService Funds CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users$ 1,471,795$ 274,587$ 146,862 $ 1,893,244 $ 900,235 Payments to Suppliers (1,199,214) (116,619) (87,140) (1,402,973) (189,745) Payments to Employees (172,795) (25,484) (64,571) (262,850) (547,468) Miscellaneous Revenue 41,249 1,817 5,703 48,769 - Net Cash Flows - Operating Activities 141,035 134,301 854 276,190 163,022 CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES Transfer from Other Funds 25,000 - - 25,000 - Transfer to Other Funds (11,150) (405,083) - (416,233) (8,200) Due to Other Funds 189 - - 189 (99,930) Due from Other Funds - (189) - (189) 99,930 Net Cash Flows - Noncapital Financing Activities 14,039 (405,272) - (391,233) (8,200) CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets (34,414) - (5,620) (40,034) (8,003) CASH FLOWS - INVESTING ACTIVITIES Interest and Dividends Received 13,050 2,652 136 15,838 10,664 Net Change in Cash and Cash Equivalents 133,710 (268,319) (4,630) (139,239) 157,483 CASH AND CASH EQUIVALENTS Beginning of Year 449,867 367,974 21,782 839,623 288,004 End of Year$ 583,577$ 99,655$ 17,152 $ 700,384 $ 445,487 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Income (Loss)$ (17,932)$ 99,174$ (14,929)$ 66,313 $ 85,924 Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows - Operating Activities: Miscellaneous Revenue 41,249 1,817 5,703 48,769 - Depreciation Expense 147,478 27,901 14,142 189,521 64,576 Accounts Receivable (12,265) - 169 (12,096) - Due from Other Governments 2,436 - 90 2,526 - Prepaid Items (8,406) - (3,286) (11,692) (19,396) Accounts Payable (23,642) 4,136 (1,117) (20,623) (4,154) Due to Other Governmental Units 4,961 750 (151) 5,560 (2,586) Salaries Payable 533 99 98 730 6,251 OPEB Payable 2,524 424 135 3,083 6,596 Compensated Absences Payable 4,099 - - 4,099 25,811 Total Adjustments 158,967 35,127 15,783 209,877 77,098 Net Cash Flows - Operating Activities$ 141,035$ 134,301$ 854$ 276,190 $ 163,022 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Assets Purchased on Account$ 57,598$ -$ -$ 57,598 $ - Contributions of Capital Assets - 207,291 - 207,291 - Total Noncash Investing, Capital and Financing Activities$ 57,598$ 207,291$ -$ 264,889 $ - The Notes to the Financial Statements are an integral part of this statement. 28 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Mendota Heights is a statutory city governed by an elected mayor and four council members. The accompanying financial statements present the government entities for which the government is considered to be financially accountable. The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organizations governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities or level of services performed or provided by the organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on, the City. As a result of applying the component unit definition criteria above, the City has no component units. B.Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Interest on general long-term debt is considered an indirect expense and is reported separately in the Statement of Activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions 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. Internally dedicated revenues are reported as general revenues rather than program revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Internal Service Funds are presented in the internal service fund financial statements. Because the principal user of internal Internal Service Fund is consolidated into the governmental column when presented in the government- wide financial statements. The cost of these services is reported in the appropriate functional activity. 29 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial 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 met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. 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 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 matures. Property taxes, franchise taxes, licenses and interest associated with the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of special assessments receivable due within the current period is considered to be susceptible 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. Description of Funds: Major Governmental Funds: General Fund This Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Assessments Debt Service Fund This Fund receives all special assessment payments and is dedicated for the repayment of debt incurred on a specific project. Street Capital Projects Fund This Fund is used to account for the proceeds and disbursements of funds for street improvement expenditures. Special Assessment Capital Project Fund This Fund is used to account for the proceeds and disbursements of funds for projects that are not included in the Street Capital Project Fund. 30 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Description of Funds: (Continued) Proprietary Funds: Sewer Utility Fund This Fund is used to account for the Citys sewer utility. Storm Water Utility Fund This Fund is used to account for the Citys storm water utility. Par 3 Golf Course Fund This Fund is used to account for the Citys operation of the Par 3 Golf Course. Additional Fund Types: Internal Service Funds These Funds account for the financing of goods or services provided by one department to other departments of the City on a cost- Service Funds account for engineering, compensated absences and City Hall expenses. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial st various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 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 ing operations. The principal operating revenues of Operating expenses for the Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, the City uses restricted resources first, then unrestricted resources as they are needed. Further, the City applies unrestricted funds in this order if various levels of unrestricted fund balances exist: committed, assigned and unassigned. D. Assets, Liabilities and Net Position or Equity 1. Deposits and Investments - term investments with original maturities of three months or less from the date of acquisition. Investments for the City are reported at fair value. 31 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Position or Equity (Continued) 1. Deposits and Investments (Continued) Minnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies and instrumentalities, shares of investment companies whose only investments are in the aforementioned contracts, repurchase and reverse repurchase agreements and commercial paper of the highest quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool. Minnesota Statutes requires all deposits made by cities with financial institutions to be collateralized in an amount equal to 110% of deposits in excess of Federal Deposit Insurance Corporation (FDIC) insurance. Custodial Credit Risk Deposits: For deposits, this is the risk that in the event of bank failure, the authority from the City Council to maintain deposits with various financial institutions that are states all deposits must be collateralized in compliance with Minnesota Statutes 118A. Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to changes in market interest rates. As a means of limiting its exposure to fair value losses arising laddered maturities so that funds become available on a regular schedule. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments in commercial paper and corporate bonds to be in the top s investment policy addresses credit quality by allowing the City to invest only in instruments permitted by Minnesota Statutes 118A.04-05. Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single is to type and maturity. The policy states the portfolio will contain both short-term and long-term investments and will attempt to match its investments with anticipated cash flow requirements. Custodial Credit Risk Investments: For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that that to ensure safety when considering an investment it is verified to make certain funds in excess of insurance are not made at the same institution. 32 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Position or Equity (Continued) 2. Receivables and Payables All trade and property tax receivables are shown at a gross amount since both are assessable to the property taxes and are collectible upon the sale of the property. The City levies its property tax for the subsequent year during the month of December. December 28 is the last day the City can certify a tax levy to the County Auditor for collection the following year. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The property tax is recorded as revenue when it becomes measurable and available. Dakota County is the collecting agency for the levy and remits the collections to the City three times a year. The tax levy notice is mailed in March with the first half of the payment due on May 15 and the second half due on October 15. Taxes not collected as of December 31 each year are shown as delinquent taxes receivable. The County Auditor prepares the tax list for all taxable property in the City, applying the applicable tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The County Auditor also collects all special assessments, except for certain prepayments paid directly to the City. The County Auditor submits the list of taxes and special assessments to be collected on each parcel of property to the County Treasurer in January of each year. 3. Inventories Inventories are valued at cost, which approximates market, using the first-in, first-out (FIFO) method. Inventory consists of expendable supplies held for consumption. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventory land held for resale represents land owned by the City with the intent to sell to developers. This land is recorded at the lesser of historical cost or expected net realizable value. 4. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 33 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Position or Equity (Continued) 5. Capital Assets Capital assets, which include property, plant, equipment, intangible and infrastructure assets (e.g., roads, sidewalks, easements and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $ 5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated 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. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: AssetsYears Buildings15-100 Other Improvements10-40 Machinery and Equipment3-25 Infrastructure30-100 6. Compensated Absences\Severance The City allows employees to accrue vacation based on years of service to carry over to the next year. Accrued vacation shall be used in the year following the year which said time is earned and any time accrued will be paid out at termination. At the end of the year the vacation balance cannot exceed 200 hours. The full-time union employees accrue vacation based on years of service to carry over to the next year. Accrued vacation shall be used in the year following the year which said time is earned. At the end of the year the vacation balance cannot exceed 200 hours. All permanent full-time employees accrue personal leave at the rate of 4 hours per month, to a maximum of 320 hours. Any balances in excess of 320 hours will be converted to cash compensation or additional vacation time at a ratio of 50%. All compensated absences pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured as a result of employee termination or similar circumstances. These liabilities are paid by the governmental fund the employee provided most of its service to. The unused vacation and sick leave of the proprietary funds is included in accrued liabilities of the respective fund. 34 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Position or Equity (Continued) 7. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund 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 Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize 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. 8. Fund Equity a.Classification In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in those funds can be spent. Nonspendable Fund Balance These are amounts that cannot be spent because they are not in spendable form or they are legally or contractually required to be maintained intact. Restricted Fund Balance These are amounts that are restricted to specific purposes either by a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments or b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance These are amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council (highest level of decision making authority) through resolution. Assigned Fund Balance used for specific purposes but are neither restricted nor committed. Assignments are made by Administrator or 35 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Assets, Liabilities and Net Position or Equity (Continued) 8. Fund Equity (Continued) a.Classification (Continued) Unassigned Fund Balance These are residual amounts in the General Fund not reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund. b.Minimum Fund Balance The City will strive to maintain a General Fund unassigned fund balance of 65% of the following 9. Net Position Net position represents the difference between assets and liabilities in the government-wide financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. A reclassification of $ 2,792,050 was made between this net position class and unrestricted net position in the total column on the Statement of Net Position to recognize the portion of debt attributable to capital assets donated from governmental activities to business-type activities. Net position is reported as restricted in the government-wide financial statement when there are limitations on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 10. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenditures/expense during the reporting period. Actual results could differ from those estimates. 36 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information The City Council adopts an annual budget for the General Fund and certain special revenue and capital budgeted amount and all revisions made during the year. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1.The City Administrator prepares and presents to the City Council a proposed operating budget for the year commencing the following January 1. The operating budget included proposed expenditures and means of financing them. 2.Public hearings are conducted to obtain taxpayer comments. 3.The City Council deliberates on and adopts the budget on a basis consistent with accounting principles generally accepted in the United States of America and legally enacts the budget by passage of a resolution. 4.Formal budgetary integration is employed as a management control device during the year. 5.The City Council must approve any budget appropriation transfers between departments and any increases in budget appropriations to the extent actual revenues exceed estimated revenues. 6.Reported budget amounts are as originally adopted or as amended by City Council approved supplemental appropriations and budget transfers. Annual appropriations lapse at year-end. No revisions were made to the budgets during the year. B.Deficit Fund Balances The following Funds had deficit fund balances at December 31, 2012: Special Assessment Capital Project$ 58,553 Other Nonmajor Capital Projects Fund: Pilot Knob Improvement 11,542 Internal Service Fund: Engineering 115,570 NOTE 3 DEPOSITS AND INVESTMENTS investments authorized by Minnesota Statutes on the financial st risk of investing public funds, the balances and related restrictions are summarized on the following pages. 37 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 3 DEPOSITS AND INVESTMENTS A. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Custodial Credit Risks Deposits: As of December 31, 2012, the Ci to custodial credit risk because it was insured through the FDIC. As of December 31, 2012, the City had deposits as follows: B.Investments As of December 31, 2012, the City had the following investments: FairInvestment Maturities CreditValueLess Than1 - 56 - 10 Investment TypeRatings12/31/121 YearYearsYears FHLB AA+$ 3,158,672$ - $ - $ 3,158,672 Mutual FundsN/A 5,772,704 5,772,704 - - Brokered Cash and Money MarketsN/A 991,855 991,855 - - Brokered Certificates of DepositN/A 2,732,076 1,779,608 747,086 205,382 Total$ 12,655,307$ 8,544,167$ 747,086$ 3,364,054 Credit Risk: As of December 31, 2012rities were rated an average AA+ by SS&P). Concentration of Credit Risk: As of December 31, 2012, investments in government securities FHLB (24.96%) was exposed to concentration of credit risk as they e risk. Custodial Credit Risk Investments: -dealer were insured by Securities Investor Protection Corporation (SIPC) or other supplemental insurance as of December 31, 2012. However, each investment brokerage firm may have a limit to their supplemental insurance and the risk due to the controls in place at the broker-dealer. 38 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 3 DEPOSITS AND INVESTMENTS C. Deposits and Investments The following is a summary of total deposits and investments: Deposits and investments are presented in the December 31, 2012 basic financial statements as follows: Statement of Net Position: Cash and Investments$ 12,717,710 NOTE 4 INTERFUND ACTIVITIES A. Interfund Receivables and Payable December 31, 2012: The balances above will be repaid as financing becomes available. 39 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 4 INTERFUND ACTIVITIES B.Interfund Transfers The composition of interfund transfers as of December 31, 2012 was as follows: Transfers In StreetOther Special Capital GovernmentalSewer Assessment GeneralProjectsCapital ProjectFundsUtilityTotal Transfers Out: General$ -$ -$ -$ 152,016$ -$ 152,016 Special Assessments Debt Service 22,250 2,579,662 - - - 2,601,912 Street Capital Projects - - 71,165 - - 71,165 Other Governmental Funds 84,500 546,971 - 188,700 25,000 845,171 Sewer Utility 11,150 - - - - 11,150 Storm Water Utility 9,650 395,433 - - - 405,083 Internal Service Funds 8,200 - - - - 8,200 Total$ 135,750$ 3,522,066$ 71,165$ 340,716$ 25,000$ 4,094,697 The purpose of the above transfers is to distribute bond proceeds and to provide funding for capital improvement projects, capital outlay and operating purposes. 40 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2012 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental Activities: Capital Assets not being Depreciated: Land and Improvements $ 6,117,082$ 6,324$ -$ 6,123,406 Construction in Progress 2,481,616 2,647,388 1,793,178 3,335,826 Total Capital Assets not being Depreciated 8,598,698 2,653,712 1,793,178 9,459,232 Capital Assets being Depreciated: Buildings and Structures 6,249,219 146,073 - 6,395,292 Machinery and Equipment 4,070,784 138,347 35,138 4,173,993 Other Improvements 2,005,631 66,739 - 2,072,370 Infrastructure 34,203,772 3,004,622 90,291 37,118,103 Total Capital Assets being Depreciated 46,529,406 3,355,781 125,429 49,759,758 Less Accumulated Depreciation for: Buildings and Structures 3,385,729 175,778 - 3,561,507 Machinery and Equipment 2,144,250 280,748 24,642 2,400,356 Other Improvements 1,250,879 82,997 - 1,333,876 Infrastructure 13,364,784 1,186,964 90,291 14,461,457 Total Accumulated Depreciation 20,145,642 1,726,487 114,933 21,757,196 Total Capital Assets being Depreciated, Net 26,383,764 1,629,294 10,496 28,002,562 Governmental Activities Capital Assets, Net$ 34,982,462$ 4,283,006$ 1,803,674$ 37,461,794 41 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 5 CAPITAL ASSETS BeginningEnding BalanceIncreasesDecreasesBalance Business-Type Activities: Capital Assets not being Depreciated: Land$ 2,531,475$ -$ -$ 2,531,475 Capital Assets being Depreciated: Buildings and Structures 202,870 5,620 - 208,490 Machinery and Equipment 169,057 - - 169,057 Sewer Main Lines and Storm Sewers 15,978,548 299,303 - 16,277,851 Total Capital Assets being Depreciated 16,350,475 304,923 - 16,655,398 Less Accumulated Depreciation for: Buildings and Structures 31,632 7,037 - 38,669 Machinery and Equipment 97,670 14,446 - 112,116 Sewer Main Lines and Storm Sewers 4,211,479 168,038 - 4,379,517 Total Accumulated Depreciation 4,340,781 189,521 - 4,530,302 Total Capital Assets being Depreciated, Net 12,009,694 115,402 - 12,125,096 Business-Type Activities Capital Assets, Net$ 14,541,169$ 115,402$ -$ 14,656,571 42 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 5 CAPITAL ASSETS Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities: General Government$ 214,494 Public Safety 133,521 Public Works 1,313,896 Internal Service Funds 64,576 Total Depreciation Expense - Governmental Activities$ 1,726,487 Business-Type Activities: Sewer Utility$ 147,478 Storm Water Utility 27,901 Par 3 Golf Course 14,142 Total Depreciation Expense - Business-Type Activities$ 189,521 NOTE 6 LONG-TERM DEBT A.G.O. Bonds The City issues G.O. bonds to provide for financing street improvements, major capital equipment purchases and utility improvements. Debt service is funded through property taxes, special assessments and utility charges. G.O. bonds are direct obligations and pledge the full faith and credit of the City. 43 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 6 LONG-TERM DEBT B.Components of Long-Term Liabilities InterestOriginalFinalPrincipalDue Within RatesIssueMaturityOutstandingOne Year Long-Term Liabilities: Government Activities: G.O. Improvement Bonds, Including Refunding Bonds: 02/01/17 G.O. Improvement Bonds of 20063.60%-3.90% 630,000$ 355,000$ 65,000 02/01/27 G.O. Improvement Bonds of 2007B4.00%-4.15% 1,595,000 1,280,000 85,000 02/01/28 G.O. Improvement Bonds of 20083.25%-4.45% 3,200,000 2,795,000 155,000 02/01/30 G.O. Improvement Bonds of 20100.875%-3.750% 1,055,000 1,055,000 60,000 02/01/31 G.O. Improvement Bonds of 20110.40%-3.40% 2,970,000 2,970,000 110,000 02/01/32 G.O. Improvement Bonds of 20122.00%-2.70% 2,630,000 2,630,000 - Total Improvement Bonds 11,085,000 475,000 G.O. Bonds, Including Refunding Bonds: 02/01/23 G.O. Bonds of 2007A4.00%-4.20% 2,790,000 2,205,000 160,000 02/01/20 G.O. Bonds of 20091.50%-3.50% 745,000 630,000 75,000 Total G.O. Bonds 2,835,000 235,000 Compensated Absences Payable 485,057 362,948 Total Governmental Activities 14,405,057 1,072,948 Business-Type Activities: Compensated Absences Payable 26,140 15,395 Total all Long-Term Liabilities$ 14,431,197$ 1,088,343 Long-term bonded indebtedness listed above were issued to finance acquisition and construction of capital facilities or to refinance (refund) previous bond issues. Debt Service Funds will be used to pay general government principal and interest liabilities. The General Fund and Sewer Utility Fund will pay for the corresponding compensated absence liability. 44 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 6 LONG-TERM DEBT C. Changes in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2012 was as follows: BeginningEndingDue Within BalanceAdditionsReductionsBalanceOne Year Governmental Activities: Bonds Payable: G.O. Improvements Bonds$ 10,415,000$ 2,630,000$ 1,960,000$ 11,085,000$ 475,000 G.O. Bonds 3,065,000 - 230,000 2,835,000 235,000 Compensated Absences Payable 459,246 379,939 354,128 485,057 362,948 Total Governmental Activities 13,939,246 3,009,939 2,544,128 14,405,057 1,072,948 Business-Type Activities: Compensated Absences Payable 22,041 19,053 14,954 26,140 15,395 Total Government$ 13,961,287$ 3,028,992$ 2,559,082$ 14,431,197$ 1,088,343 D. Long-Term Debt The annual requirements to amortize all bonded debt outstanding follows: Governmental Activities Improvement BondsG.O. Bonds Year Ending December 31,PrincipalInterestTotalPrincipalInterestTotal 2013$ 475,000$ 311,212$ 786,212$ 235,000$ 104,819$ 339,819 2014 590,000 305,508 895,508 245,000 96,531 341,531 2015 700,000 290,731 990,731 250,000 87,756 337,756 2016 695,000 273,658 968,658 265,000 78,425 343,425 2017 705,000 255,164 960,164 270,000 68,498 338,498 2018-2022 3,215,000 1,002,389 4,217,389 1,325,000 180,764 1,505,764 2023-2027 3,085,000 505,083 3,590,083 245,000 5,145 250,145 2028-2032 1,620,000 97,548 1,717,548 - - - Total$ 11,085,000$ 3,041,293$ 14,126,293$ 2,835,000$ 621,938$ 3,456,938 NOTE 7 JOINT POWERS DEBT COMMITMENT On August 25, 2005, the City entered into a joint powers agreement with the Cities of Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Rosemount, South St. Paul, West St. Paul, Minnesota and Dakota County, Minnesota, to establish the Dakota Communications Center (DCC), a Minnesota nonprofit corporation. The purpose of the DCC is to engage in the operation and maintenance of a county-wide public safety answering point and communications center for law enforcement, fire, emergency medical services and other public safety services for the mutual benefit of residents powers agreement, Members are required to provide DCC their pro rata share of cost of operations and maintenance and capital projects. 45 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 7 JOINT POWERS DEBT COMMITMENT On May 1, 2007, the DCC issued Public Safety Revenue Bonds, Series 2007 in the amount of $ 7,315,000 to provide financing for the acquisition of equipment and reimbursement for conversion costs. The Bonds are special obligations of the DCC, payable from revenues to be received from Members. Pursuant to the joint powers agreement, Members will levy taxes for the payment of their pro rata share of the principal and interest payments due on the Bonds. The Bonds mature February 1, 2014, and bear interest rates ranging from 4.0%-5.0%. The debt will be repaid with member assessments over a seven year amortization. All Members reserve the right to prepay, in whole or in part on any date, its allocated share of principal and interest on the Bonds. Payments from the City are provided from General Fund appropriations. In 2012, the City member payments totaled $ 21,800 31, 2012 are as follows: Payment YearAmount 2013$ 21,000 Pursuant to Section 9.5 of the joint powers agreement, Member payments are submitted monthly and held in escrow by US Bank National Association (trustee) until the funds are remitted to the bond holders according to the established bond principal and interest due dates. The interest earnings from the escrow account will reduce future Member obligations on the debt. Information regarding the DCC can be obtained at the website www.mn-dcc.org/stats.asp or by contacting Dennis Feller at the City of Lakeville, 20195 Holyoke Avenue, Lakeville, Minnesota 55044. Telephone 952-985-4482 or email address dfeller@ci.lakeville.mn.us. NOTE 8 OPERATING LEASE The City leases six squad cars under a noncancelable operating lease. The following is a schedule by years of future minimum payments required under the leases as of December 31, 2012. Year Ending December 31, 2013$ 37,673 2014 21,484 2015 6,059 Total$ 65,216 46 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 9 CONDUIT DEBT From time-to-time, the City has issued Industrial Development and Housing Mortgage Revenue Bonds in accordance with the Minnesota Municipal Industrial Development Act. These obligations are issued to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The obligations are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the obligations, ownership of the acquired facilities transfers to the private-sector entity served by the debt issuance. Neither the City, the State of Minnesota nor any political subdivision thereof, is obligated in any manner for the repayment of the obligations. Accordingly, the Bonds are not reported as liabilities in the accompanying financial statements. The aggregate amount of all conduit debt obligations outstanding as of December 31, 2012 was $ 22,369,600. NOTE 10 FUND BALANCE DETAIL Fund equity balances are classified below to reflect the limitations and restrictions of the respective Funds. Special Special Assessment StreetOther Capital CapitalGovernmental GeneralAssessment FundDebt ServiceProjectsProjectFundsTotal Nonspendable: Inventories$ 39,825 $ -$ -$ -$ - $ 39,825 Prepaid Items 149,885 - - - 632 150,517 Restricted: Park Dedication Fees - - - - 221,819 221,819 Street Light Maintenance - - - - 17,985 17,985 Debt Service - 1,993,896 - - 388,663 2,382,559 Committed: Water System Maintenance - - - - 474,068 474,068 Emergency Preparedness and Civil Defense - - - - 48,585 48,585 Assigned: Capital Projects - - 498,087 - 1,383,731 1,881,818 Land Held For Resale - - - - 50,000 50,000 Insurance Reserve 228,762 - - - - 228,762 Unassigned 5,980,182 - - (58,553) (11,542) 5,910,087 Total$ 6,398,654$ 1,993,896$ 498,087$ (58,553)$ 2,573,941$ 11,406,025 NOTE 11 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. 47 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 11 RISK MANAGEMENT The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) with other cities in the state which is a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. During the year ended December 31, 2012, there were no significant reductions in insurance or settlements in excess of insurance coverage for any of the past three years. Workers compensation coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to LMCIT. For workers compensation, the City is not subject to a deductible. However, the actual premium is adjusted based on audited payroll amounts. NOTE 12 DEFINED BENEFIT PENSION PLANS STATE-WIDE A. Plan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administers the Fire Fund (PEPFF), which are cost-sharing, multiple-employer retirement plans. These Plans are established and administered in accordance with Minnesota Statutes Chapters 353 and 356. GERF members belong to either the Coordinated or Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute and vest after three years of five successive years of allowable service, age and years of credit at termination of service. 48 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 12 DEFINED BENEFIT PENSION PLANS STATE-WIDE A. Plan Description (Continued) retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For all GERF and PEPFF members hired prior to July 1, 1989, whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated Plan members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated Plan members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the Fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active Plan participants. Vested, terminated employees who are entitled to benefits but are not yet receiving them are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org, by writing to PERA at 60 Empire Drive, #200, St. Paul, Minnesota 55103-2088 or by calling (651) 296-7460 or (800) 652-9026. 49 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 12 DEFINED BENEFIT PENSION PLANS STATE-WIDE B.Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These Statutes are established and amended by the State Legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.25%, respectively, of their annual covered salary in 2012. PEPFF members were required to contribute 9.6% of their annual covered salary in 2012. In 2012, the City was required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members and 14.4% for PEPFF s ending December 31, 2012, 2011 and 2010 were $ 137,214, $ 128,778 and $ 125,048 contributions to PEPFF for the years ending December 31, 2012, 2011 and 2010 were $ 224,240, $ 213,415 and $ 201,074 contributions for each year as set by state statute. NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN A. Plan Description The City provides a single-employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage and dental coverage. Medical coverage is administered by BlueCross Blue periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. B.Funding Policy Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with BlueCross BlueShield and Delta Dental. The required contributions are based on projected pay-as-you-go financing requirements. For the year 2012, the City contributed $ 16,146 to the plan. As of January 1, 2012, there was one retiree receiving health and dental benefits from the City. C. Annual OPEB Cost and Net OPEB Obligation d contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The City prospectively implemented this Statement during the 2010 year. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The table on the following page amount actually contribut 50 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN C. Annual OPEB Cost and Net OPEB Obligation (Continued) ARC$ 71,316 Interest on Net OPEB Obligation 4,444 Adjustment to ARC (6,038) Annual OPEB Cost (Expense) 69,722 Contributions Made (16,146) Increase in Net OPEB Obligation 53,576 Net OPEB Obligation - Beginning of Year 98,760 Net OPEB Obligation - End of Year$ 152,336 OPEB cost contributed to the plan and the net OPEB obligation for 2012 was as follows: Percentage of Annual OPEB Employer Annual OPEB Cost Net OPEB Fiscal Year EndedCostContributionContributedObligation 12/31/10$ 52,501$ 19,37037%$ 69,909 12/31/11 51,966 23,11544% 98,760 12/31/12 69,722 16,14623% 152,336 D. Funded Status and Funding Progress As of January 1, 2012, the most recent actuarial valuation date, the City had no assets deposited to fund the plan. The actuarial accrued liability for benefits was $ 506,367 and the actuarial value of assets was $ 0, resulting in an unfunded actuarial accrued liability (UAAL) of $ 506,367. The covered payroll (annual payroll of active employees covered by the plan) was $ 3,176,568 and the ratio of the UAAL to the covered payroll was 15.9%. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the ARC of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress Other Post Employment Benefits, presented as required supplementary information following the Notes to the Financial Statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 51 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 13 POST EMPLOYMENT HEALTH CARE PLAN E.Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. Atthe January 1, 2012 actuarial valuation date, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 4.5% discount rate, which is based on the investment yield expected to finance benefits depending on whether the plan is funded in a separate trust (about 7% to 8.5%, long-term, similar to a pension plan) or unfunded (3.5% to 5%, shorter- general assets). The City currently does not plan to prefund for this benefit. At the actuarial valuation date, the annual health care cost trend rate was calculated to be 8% initially, reduced incrementally to an ultimate rate of 5% after 6 years. Both rates included a 2.5% inflation assumption. The UAAL is being amortized as a level dollar amount of payroll on a closed basis. The remaining amortization period at January 1, 2012 was 30 years. NOTE 14 TOWN CENTER THE VILLAGE AT MENDOTA HEIGHTS The City temporarily has title to certain real properties in Town Center and an escrow account relating to The City currently has title to land valued by Dakota County at $ 627,800. The escrow balance is approximately $ 1,608 at December 31, 2012. The escrow account is to fund the underground parking for the currently under construction retail and office building. Once the developed and owned privately, and thus neither the land nor the escrow account are reported in the NOTE 15 JOINT VENTURES A. Dakota Communications Center The City is a member of the Dakota Communication Center (DCC). The DCC was created by a joint powers agreement between Dakota County and several cities. Its purposes include the establishment, operation and maintenance of joint law enforcement, fire, EMS and other emergency communications systems. Members are obligated to pay their proportional share of operating and capital expenditures on an annual basis. The City paid $ 183,420 for 2012. Members do not maintain an equity interest other than if the DCC were to terminate. Withdrawing members forfeit any interest in the DCC. Information regarding the DCC can be obtained at the website www.mn-dcc.org. 52 CITY OF MENDOTA HEIGHTS NOTES TO THE FINANCIAL STATEMENTS December 31, 2012 NOTE 15 JOINT VENTURES B.Local Government Information Systems Association (LOGIS) The consortium of approximately 30 government entities provides computerized data processing and support services to its members. LOGIS is a legally separate entity; the entities appoint a voting majority of its board, and the consortium is fiscally independent of the City. For 2012, the City paid $ 33,289 financial statements of the consortium may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422. NOTE 16 COMMITMENTS At December 31, 2012, the following contract commitments existed: RevisedCompleted ContracttoAmount Project AmountDateRemaining Lemay Lake Neighborhood Improvements$ 1,331,171 $ 1,254,265$ 76,906 Marie Avenue Rehabilitation 1,039,735 943,245 96,490 NOTE 17 SUBSEQUENT EVENTS The City has evaluated subsequent events through May 20, 2013, the date which the financial statements were available to be issued. NOTE 18 CHANGE IN ACCOUNTING PRINCIPLE For the year ended December 31, 2012, the City has implemented GASB Statement No. 63 and GASB Statement No. 65. Implementation of GASB Statement No. 63 resulted in the establishment of categories outside of assets and liabilities titled deferred outflows and deferred inflows. The Statement also retitled Net Assets as Net Position. Implementation of GASB Statement No. 65 resulted in reporting for deferred outflows and deferred inflows as established by GASB Statement No. 63. This statement also retroactively eliminated the recognition of $ 94,143 in deferred charges associated with bond issuances. NOTE 19 GASB STATEMENT ISSUED BUT NOT YET IMPLEMENTED GASB Statement No. 68 replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. Statement 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. 53 (THIS PAGE LEFT BLANK INTENTIONALLY) 54 REQUIRED SUPPLEMENTARY INFORMATION 55 CITY OF MENDOTA HEIGHTS SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS December 31, 2012 ActuarialUAAL as a ActuarialAccrued LiabilityUnfundedPercentage of ActuarialValue of (AAL) - ProjectedAALFunded CoveredCovered ValuationAssetsUnit Credit(UAAL)RatioPayrollPayroll Date(a)(b)(b-a)(a/b)(c )((b-a)/c) 01/01/09$ -$ 357,126$ 357,1260.0%$ 2,905,07312.3% 01/01/12 - 506,367 506,3670.0% 3,176,56815.9% * This Schedule was implemented in 2009 and was updated once since and, therefore, contains only two years of data. 56 SUPPLEMENTARY INFORMATION 57 CITY OF MENDOTA HEIGHTS COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2012 Special Revenue Water RevenueSpecial ParkCivil Defense ASSETS Cash and Investments $ 468,347$ 221,566$ 48,543 Taxes Receivable - Delinquent - - 557 Special Assessments Receivable: Deferred - - - Accounts Receivable - - - Interest Receivable 392 253 42 Due from Other Funds - - - Due from Other Governments 5,329 - - Prepaid Items - - 632 Land Held for Resale - - - TOTAL ASSETS$ 474,068$ 221,819$ 49,774 LIABILITIES Accounts Payable$ -$ -$ - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - 557 FUND BALANCES Nonspendable - - 632 Restricted - 221,819 - Committed 474,068 - 48,585 Assigned - - - Unassigned - - - Total Fund Balances 474,068 221,819 49,217 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 474,068$ 221,819$ 49,774 58 Special RevenueDebt Service Street Par 3 G.O. Equipment LightingTotal BondsCertficatesTotal $ 21,815$ 760,271$ 270,164$ 118,167 $ 388,331 854 1,411 5,516 1,004 6,520 - - - - - - - - - - 17 704 173 159 332 - - - - - - 5,329 - - - - 632 - - - - - - - - $ 22,686$ 768,347$ 275,853$ 119,330 $ 395,183 $ 3,847$ 3,847$ -$ -$ - 854 1,411 5,516 1,004 6,520 - 632 - - - 17,985 239,804 270,337 118,326 388,663 - 522,653 - - - - - - - - - - - - - 17,985 763,089 270,337 118,326 388,663 $ 22,686$ 768,347$ 275,853$ 119,330 $ 395,183 59 CITY OF MENDOTA HEIGHTS COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2012 Capital Projects Equipment Replacement Infrastructure Facility ReserveReserveReserve ASSETS Cash and Investments $ 105,331$ 61,887$ 101,792 Taxes Receivable - Delinquent 503 512 82 Special Assessments Receivable: Deferred - - - Accounts Receivable - - - Interest Receivable 102 205 16 Due from Other Funds - - - Due from Other Governments - - - Prepaid Items - - - Land Held for Resale - - - TOTAL ASSETS$ 105,936$ 62,604$ 101,890 LIABILITIES Accounts Payable$ -$ 4,225$ 7,207 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue 503 512 82 FUND BALANCES Nonspendable - - - Restricted - - - Committed - - - Assigned 105,433 57,867 94,601 Unassigned - - - Total Fund Balances 105,433 57,867 94,601 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 105,936$ 62,604$ 101,890 60 Capital Projects Total Water Tower Nonmajor Capital Pilot Knob Pre-1998 Non-Governmental ProjectImprovementIncrementTotalFunds $ 764,424$ 16,824 $ 239,785$ 1,290,043 $ 2,438,645 - - - 1,097 9,028 - - 2,350 2,350 2,350 3,274 - 2,654 5,928 5,928 1,267 13 505 2,108 3,144 - - 113,921 113,921 113,921 - - - - 5,329 - - - - 632 - - 50,000 50,000 50,000 $ 768,965$ 16,837 $ 409,215$ 1,465,447 $ 2,628,977 $ -$ 28,379 $ - $ 39,811 $ 43,658 - - 2,350 3,447 11,378 - - - - 632 - - - - 628,467 - - - - 522,653 768,965 - 406,865 1,433,731 1,433,731 - (11,542) - (11,542) (11,542) 768,965 (11,542) 406,865 1,422,189 2,573,941 $ 768,965$ 16,837 $ 409,215$ 1,465,447 $ 2,628,977 61 CITY OF MENDOTA HEIGHTS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2012 Special Revenue Water Civil Street RevenueSpecial ParkDefenseLightingTotal REVENUES Property Taxes$ - $ -$ 25,183 $ 41,973$ 67,156 Special Assessments - - - - - Intergovernmental - - 338 - 338 Charges for Services 285,139 - - - 285,139 Miscellaneous: Investment Income 2,154 1,390 228 96 3,868 Other - - - - - Total Revenues 287,293 1,390 25,749 42,069 356,501 EXPENDITURES Current General Government 3,053 - 12,603 22,709 38,365 Public Works - 5,939 - - 5,939 Debt Service Principal - - - - - Interest and Other Charges - - - - - Capital Outlay Public Works 15,933 4,000 - - 19,933 Total Expenditures 18,986 9,939 12,603 22,709 64,237 Excess of Revenues Over (Under) Expenditures 268,307 (8,549) 13,146 19,360 292,264 OTHER FINANCING SOURCES (USES) Transfers In - - - - - Transfers Out (203,000) (1,500) - (13,700) (218,200) Total Other Financing Sources (Uses) (203,000) (1,500) - (13,700) (218,200) Net Change in Fund Balances 65,307 (10,049) 13,146 5,660 74,064 FUND BALANCES Beginning of Year 408,761 231,868 36,071 12,325 689,025 End of Year$ 474,068$ 221,819 $ 49,217 $ 17,985$ 763,089 62 Debt ServiceCapital Projects Equipment Par 3 G.O. Equipment Replacement Infrastructure Facility BondsCertficatesTotalReserveReserveReserve $ 262,426$ 52,835 $ 315,261 $ 19,802$ 19,873$ - - - - - - - - - - - - - - - - - - - 950 874 1,824 554 1,126 89 - - - - - - 263,376 53,709 317,085 20,356 20,999 89 - - - - - 5,378 - - - - 86,209 - 155,000 80,000 235,000 - - - 93,926 16,010 109,936 - - - - - - - - 146,073 248,926 96,010 344,936 - 86,209 151,451 14,450 (42,301) (27,851) 20,356 (65,210) (151,362) - - - - 13,700 146,073 - - - - (84,785) - - - - - (71,085) 146,073 14,450 (42,301) (27,851) 20,356 (136,295) (5,289) 255,887 160,627 416,514 85,077 194,162 99,890 $ 270,337$ 118,326 $ 388,663 $ 105,433$ 57,867$ 94,601 63 CITY OF MENDOTA HEIGHTS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2012 Capital Projects Water Tower Pre-1998 Total Other Capital Pilot Knob Non-Governmental ProjectImprovementIncrementTotalFunds REVENUES Property Taxes$ -$ -$ - $ 39,675$ 422,092 Special Assessments - - 2,679 2,679 2,679 Intergovernmental - 37,500 - 37,500 37,838 Charges for Services - - - - 285,139 Miscellaneous: Investment Income 6,956 73 2,772 11,570 17,262 Other 106,839 - 31,534 138,373 138,373 Total Revenues 113,795 37,573 36,985 229,797 903,383 EXPENDITURES Current General Government - 55,114 76,661 137,153 175,518 Public Works - - - 86,209 92,148 Debt Service Principal - - - - 235,000 Interest and Other Charges 119 - - 119 110,055 Capital Outlay Public Works 431 - - 146,504 166,437 Total Expenditures 550 55,114 76,661 369,985 779,158 Excess of Revenues Over (Under) Expenditures 113,245 (17,541) (39,676) (140,188) 124,225 OTHER FINANCING SOURCES (USES) Transfers In 175,000 5,943 - 340,716 340,716 Transfers Out (462,186) - (80,000) (626,971) (845,171) Total Other Financing Sources (Uses) (287,186) 5,943 (80,000) (286,255) (504,455) Net Change in Fund Balances (173,941) (11,598) (119,676) (426,443) (380,230) FUND BALANCES Beginning of Year 942,906 56 526,541 1,848,632 2,954,171 End of Year$ 768,965$ (11,542)$ 406,865$ 1,422,189$ 2,573,941 64 CITY OF MENDOTA HEIGHTS COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS December 31, 2012 Compensated City Hall EngineeringAbsencesSinking FundTotal ASSETS Current Assets Cash and Investments (Including Cash Equivalents)$ -$ 371,349 $ 74,138$ 445,487 Interest Receivable - - 122 122 Due From Other Funds - 70,561 - 70,561 Prepaid Expenses 15,042 - 6,515 21,557 Total Current Assets 15,042 441,910 80,775 537,727 Noncurrent Assets Capital Assets: Land - - 25,000 25,000 Buildings - - 1,657,769 1,657,769 Improvements Other than Buildings - - 27,581 27,581 Machinery and Equipment 37,932 - 61,077 99,009 Total Capital Assets 37,932 - 1,771,427 1,809,359 Less Accumulated Depreciation (26,216) - (1,312,148) (1,338,364) Net Capital Assets 11,716 - 459,279 470,995 Total Assets$ 26,758$ 441,910 $ 540,054$ 1,008,722 LIABILITIES AND NET POSITION Current Liabilities Accounts Payable$ 101$ - $ 8,994$ 9,095 Salaries and Benefits Payable 17,444 - 2,581 20,025 Due to Other Funds 70,561 - - 70,561 Due to Other Governments - - 84 84 Noncurrent Liabilities Due Within One Year 25,591 336,543 814 362,948 Total Current Liabilities 113,697 336,543 12,473 462,713 Noncurrent Liabilities Compensated Absences 38,743 441,910 4,404 485,057 OPEB Payable 15,479 - 2,249 17,728 Less Amount Due Within One Year (25,591) (336,543) (814) (362,948) Total Noncurrent Liabilities 28,631 105,367 5,839 139,837 Total Liabilities 142,328 441,910 18,312 602,550 Net Position Net Investment in Capital Assets 11,716 - 459,279 470,995 Unrestricted (127,286) - 62,463 (64,823) Total Net Position (115,570) - 521,742 406,172 Total Liabilities and Net Position$ 26,758$ 441,910 $ 540,054$ 1,008,722 65 CITY OF MENDOTA HEIGHTS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2012 Compensated City Hall EngineeringAbsencesSinking FundTotal OPERATING REVENUES Charges for Services$ 676,054$ 19,311 $ 204,870$ 900,235 OPERATING EXPENSES Wages and Salaries 367,473 - 54,257 421,730 Employee Benefits 125,152 19,311 19,933 164,396 Materials and Supplies 9,741 - - 9,741 Professional Services 3,134 - 12,956 16,090 Insurance 6,504 - 4,218 10,722 Utilities 4,255 - 36,490 40,745 Depreciation 3,998 - 60,578 64,576 Travel 698 - 317 1,015 Equipment 270 - - 270 Miscellaneous 51,409 - 33,617 85,026 Total Operating Expenses 572,634 19,311 222,366 814,311 Operating Income (Loss) 103,420 - (17,496) 85,924 NONOPERATING REVENUES Investment Income 10,000 - 669 10,669 Income before Transfers 113,420 - (16,827) 96,593 Transfers Out (8,200) - - (8,200) Change in Net Position 105,220 - (16,827) 88,393 NET POSITION Beginning of Year (220,790) - 538,569 317,779 End of Year$ (115,570)$ -$ 521,742$ 406,172 66 CITY OF MENDOTA HEIGHTS COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS For the Year Ended December 31, 2012 Compensated City Hall EngineeringAbsencesSinking FundTotal CASH FLOWS - OPERATING ACTIVITIES Receipts from Customers and Users$ 676,054 $ 19,311$ 204,870$ 900,235 Payments to Suppliers (92,433) - (97,312) (189,745) Payments to Employees (477,488) - (69,980) (547,468) Net Cash Flows - Operating Activities 106,133 19,311 37,578 163,022 CASH FLOWS - NONCAPITAL FINANCING ACTIVITIES Transfer to Other Funds (8,200) - - (8,200) Due to Other Funds (99,930) - - (99,930) Due from Other Funds - 99,930 - 99,930 Net Cash Flows - Noncapital Financing Activities (108,130) 99,930 - (8,200) CASH FLOWS - CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets (8,003) - - (8,003) Net Cash Flows - Capital and Related Financing Activities (8,003) - - (8,003) CASH FLOWS - INVESTING ACTIVITIES Interest and Dividends Received 10,000 - 664 10,664 - 119,241 38,242 157,483 Net Change in Cash and Cash Equivalents CASH AND CASH EQUIVALENTS - 252,108 35,896 288,004 Beginning of Year $ -$ 371,349$ 74,138$ 445,487 End of Year RECONCILIATION OF OPERATING LOSS TO NET CASH FLOWS - OPERATING ACTIVITIES Operating Loss$ 103,420 $ -$ (17,496)$ 85,924 Adjustments to Reconcile Operating Loss to Net Cash Flows - Operating Activities: Depreciation Expense 3,998 - 60,578 64,576 Prepaid Items (13,706) - (5,690) (19,396) Accounts Payable (1,164) - (2,990) (4,154) Due to Other Governmental Units (1,552) - (1,034) (2,586) Salaries Payable 5,857 - 394 6,251 OPEB Payable 5,560 - 1,036 6,596 Compensated Absences Payable 3,720 19,311 2,780 25,811 Total Adjustments 2,713 19,311 55,074 77,098 Net Cash Flows - Operating Activities$ 106,133 $ 19,311$ 37,578$ 163,022 67 CITY OF MENDOTA HEIGHTS DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2012 Budgeted AmountsVariance with Final Budget - OriginalActual and FinalAmountsOver (Under) REVENUES Property Taxes $ 5,262,435$ 5,311,645 $ 49,210 Special Assessments - 1,621 1,621 Licenses and Permits 206,300 419,702 213,402 Intergovernmental Revenue Federal Grants and Aids - 130,358 130,358 State Grants and Aids: PERA Aid 9,070 9,073 3 Fire Aid 68,000 63,534 (4,466) Police Aid 110,000 110,033 33 Other Grants and Aids 129,020 144,670 15,650 Total Intergovernmental Revenue 316,090 457,668 141,578 Charges for Services 512,363 539,068 26,705 Fines and Forfeitures 79,500 73,262 (6,238) Miscellaneous Revenues Investment Income 39,300 32,711 (6,589) Other 10,000 60,355 50,355 Total Miscellaneous Revenues 49,300 93,066 43,766 Total Revenues 6,425,988 6,896,032 470,044 EXPENDITURES General Government Mayor and Council: 24,276 24,343 67 Salaries and Benefits 10,500 9,441 Contracted Services (1,059) Administration and Finance: 574,778 568,740 Salaries and Benefits (6,038) 22,700 25,728 Materials and Supplies 3,028 286,195 322,400 Contracted Services 36,205 Capital Outlay - 44,616 44,616 68 CITY OF MENDOTA HEIGHTS DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2012 (Continued) Budgeted Amounts Variance with OriginalActual Final Budget - and FinalAmounts Over (Under) EXPENDITURES: General Government (Continued) Elections: Salaries and Benefits$ 48,949$ 41,304 $ (7,645) 10,900 4,651 Materials and Supplies (6,249) 2,400 7,289 Contracted Services 4,889 Information Technology: 111,109 103,160 Salaries and Benefits (7,949) 20,240 18,739 Materials and Supplies (1,501) 5,300 5,278 Contracted Services (22) Planning and Zoning: Salaries and Benefits 30,645 28,737 (1,908) 2,400 1,046 Materials and Supplies (1,354) 77,150 62,482 Contracted Services (14,668) Recycling: Salaries and Benefits 25,538 23,947 (1,591) 1,500 - Materials and Supplies (1,500) 6,275 6,752 Contracted Services 477 Miscellaneous: Contracted Services 4,445 9,036 4,591 Total General Government 1,265,300 1,307,689 42,389 Public Safety Police Protection: 2,205,198 2,270,064 64,866 Salaries and Benefits 124,850 109,362 Materials and Supplies (15,488) 551,501 585,596 Contracted Services 34,095 70,000 41,989 Capital Outlay (28,011) Fire Protection: 206,046 179,035 Salaries and Benefits (27,011) 88,300 80,901 Materials and Supplies (7,399) 257,496 229,465 Contracted Services (28,031) 7,500 - Capital Outlay (7,500) Total Public Safety 3,510,891 3,496,412 (14,479) 69 CITY OF MENDOTA HEIGHTS DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2012 (Continued) Budgeted Amounts Variance with OriginalActual Final Budget - and FinalAmounts Over (Under) EXPENDITURES Public Works Code Enforcement: $ 94,532$ 91,479 $ (3,053) Salaries and Benefits 4,750 6,234 Materials and Supplies 1,484 68,275 73,086 Contracted Services 4,811 Street Maintenance: 478,220 481,284 Salaries and Benefits 3,064 78,700 124,356 Materials and Supplies 45,656 314,150 263,255 Contracted Services (50,895) Parks: 387,115 397,271 10,156 Salaries and Benefits 183,250 154,984 Materials and Supplies (28,266) 155,450 120,351 Contracted Services (35,099) 32,500 30,438 (2,062) Capital Outlay Total Public Works 1,796,942 1,742,738 (54,204) Total Expenditures 6,573,133 6,546,839 (26,294) Excess of Revenues Over (Under) Expenditures (147,145) 349,193 496,338 OTHER FINANCING SOURCES (USES) 135,750 135,750 Transfer In - - (152,016) Transfer Out (152,016) Total Other Financing Sources (Uses) 135,750 (16,266) (152,016) 332,927 Net Change in Fund Balances$ (11,395)$ 344,322 FUND BALANCES Beginning of Year 6,065,727 End of Year$ 6,398,654 70 REPORT ON LEGAL COMPLIANCE Honorable Mayor and Members of the City Council City of Mendota Heights Mendota Heights, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities, the business-type activities and each major fund and the aggregate remaining fund information of City of Mendota Heights, Minnesota as of and for the year ended December 31, 2012, and the related Notes to the Financial Statements, and have issued our report thereon dated May 29, 2013. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minn. Sat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories, except we did not test for compliance in Tax Increment Financing because the City has no Tax Increment Financing. In connection with our audit, nothing came to our attention that caused us to believe that the City of Mendota Heights, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters provisions. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. KERN, DEWENTER, VIERE, LTD. Bloomington, Minnesota May 29, 2013 71 7a 1101 Victoria Curve 1 Mendota Heights, MN 55118 651.452,1850 phone 1 651.452,8940 fax www.mendota- heights.com CITY OF MENDOTA HEIGHTS DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: John R. Mazzitello, PE, PMP, MBA Public Works Director /City Engineer SUBJECT: Supplement to Item 7a on the June 18, 2013 City Council Meeting Agenda BACKGROUND In response to questions from Council staff has researched the following infoimation with respect to the annual audit: Q: Does the auditor have a value of the water system, pipes, main and water tower? Assuming they do, what is it? A: The water system is included in the Statement of Net Position (p. 16) in the infrastructure number. It is currently valued on the statement at $9,710,594, net of depreciation. This number was calculated when the city implemented GASB 34. The water tower is listed in the buildings and structures number at $1,955,272. Q: Can you walk us through the grants the city has as referenced on pg. 10 of the annual report? A: On page 10 the graph has categories of operating grants and contributions and capital grants and contributions. These numbers consist of contributions more than grants. The grants that the city received in 2012 were for Pilot Knob and burying the utility lines and traffic safety grants for the police department. The operating contributions would be money the city receives from the state such as MSA maintenance funds and police and fire aids. The capital contributions included in this graph would be special assessments, MSA funds for street projects and the money we received from FEMA is also included. Q: On pg. 14 of the annual report: where are we in % of market value in GO bonds? A: The GO debt limit for the city is $32,188,068. We currently have $2,835,000 issued of GO debt. We are at 8.8% of the debt limit. Q: What is our tax capacity after fiscal disparities referenced on pg. 13 of the audit letter booklet? A: The tax capacity rate on page 13 has fiscal disparities factored into the calculation. In 2012, the tax capacity of $20,198,353 was reduced by $2,703,348 due to fiscal disparities. Our net tax capacity for 2012 was $17,495,005. In real dollars, the City of Mendota Heights paid in $1,386,570 to the Fiscal Disparities program, but we received $255,785 in State funded programs, making our total net payment of $1,130, 785. Q: What percent has the Par 3 revenue dropped since 2008 as referenced on pg. 14 of the audit letter book? A: The Par 3 revenues have dropped 22% since 2008. BUDGET IMPACT N/A RECOMMENDATION N/A t au CITY OF MENDOTA HEIGHTS page 77 1101 Victoria Curve 1 Mendota Heights, MN 651.452.1850 phone 1 651.452.8940 fax www.mendota-heights.com 8a. DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: John R. Mazzitello, PE, PMP, MBA Public Works Director /City Engineer SUBJECT: Public Hearing — Vacation of 2"d Avenue Alley Right -of -Way BACKGROUND City staff has identified a number of areas within the City that are unused, city -owned right -of- way (ROW). At the Council Goal Setting session held this past January, these areas were discussed. It was determined that areas consisting of alleys or otherwise incomplete ROWs that will not be utilized for future public use should be analyzed for vacation. Staff has researched the undeveloped, platted alleyway that exists east of Vandall Street between 2nd Avenue and 3rd Avenue. This alleyway does not connect to a developed ROW on the east and "dead ends" into private property. The platted alleyway is 20 -feet wide and is currently utilized by area residents as part of their rear yards. Several lots along the alleyway have landscaping, accessory structures, and primary structures inside the 20 -foot alley ROW. Recently, severe storms that came through Mendota Heights have caused damage from trees located within this undeveloped ROW. Since it remains under City ownership, the City was partially liable for this damage. All impacted property owners have been contacted about the potential for this action. In 2010, staff contacted the property owners for the same issue and all but one owner responded in favor of the vacation. Property owners were again surveyed earlier this year with only one response received by staff. That response was in favor of the vacation. In order to vacate the alley right -of -way, Council must hold a public hearing prior to voting on the vacation. At the June 4th City Council Meeting, Council passed a motion calling for a public hearing on the right -of -way vacation, notice of the public hearing has been published, and all adjacent property owners have been notified. After the public hearing is concluded and closed, Council may choose to move on the vacation action. BUDGET IMPACT Other than the staff time to process the vacation, there is no adverse impact to the City budget. Several thousand dollars have been spent on this right -of -way in recent years in maintenance and repair activities. If vacated future maintenance dollars can be saved. page 78 RECOMMENDATION Staff recommends Council conduct the public hearing as scheduled and approve the vacation of right -of -way. At the conclusion of the public hearing, if Council wishes to implement this recommendation, pass a motion adopting the attached RESOLUTION 2013 -42, A RESOLUTION APPROVING AN ALLEY RIGHT -OF -WAY VACATION. This action requires a 4/5 majority vote. page 79 City of Mendota Heights Dakota County, Minnesota RESOLUTION NO. 2013-42 RESOLUTION APPROVING AN ALLEY RIGHT -OF WAY VACATION WHEREAS, the City of Mendota Heights is the current record owner of the 20 -foot platted alley right -of -way east of Vandall Street between 2nd Avenue and 3rd Avenue, Dakota County, Minnesota; and WHEREAS, a notice of hearing on said vacation has been duly published and posted more than two weeks before the date scheduled for the hearing on said vacation, all in accordance with the applicable statutes; and WHEREAS, a public hearing was held on said vacation on June 18, 2013 at the City Hall of Mendota Heights; and WHEREAS, the City Council then proceeded to hear all persons interested in said vacation and all persons were afforded an opportunity to present their views and objections to the granting of said petition. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. That the vacation of the alley right -of -way described above situated in the City of Mendota Heights, is in the best interest of the public and the City, and it is not detrimental to the health, safety and welfare of the community. 2. That the above described alley right -of -way be and the same is hereby vacated. 3. That the City Clerk be and is hereby authorized and directed to prepare and present to the proper Dakota County officials notice of completion of these vacation proceedings, all in accordance with the applicable Minnesota Statutes. Adopted by the City Council of the City of Mendota Heights this 18th day of June 2013. CITY COUNCIL ATTEST: CITY OF MENDOTA HEIGHTS By Lorri Smith, City Clerk Sandra Krebsbach, Mayor page 80 Dakota County, MN Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or far zoning verification. Dakota County assumes no legal responsibility for the information contained in this data. Map Scale 1 inch = 167 feet 5/29/2013 DATE: TO: CITY OF MENDOTA HEIGHTS page 81 1101 Victoria Curve 1 Mendota Heights, M 651.452.1850 phone 1 651.452.8940 ax www.mendota-heights.com 9a. June 18, 2013 Mayor, City Council and Administrator FROM: Mike Aschenbrener, Chief of Police SUBJECT: Ordinance No. 452 AN ORDINANCE AMENDING TITLE 3, CHAPTER 2 THE CITY CODE, TOBACCO SALES BACKGROUND At the City Council goal setting workshop for 2013 the Police Department was tasked with researching and presenting options for updating the Mendota Heights City Ordinance regulating tobacco. A summer intern has been working on the new policy. The 2012 -13 Minnesota State Legislature chose to tax cigarettes at new rate causing some concern that other forms of tobacco will become more popular. The attached amendment is designed as the first step of the new ordinance by preventing indoor smoking in tobacco sales shops. The ordinance amendment will allow for a more reasonable transition to the more comprehensive ordinance later in 2013. BUDGET IMPACT There are no budget implications other than publication. RECOMMENDATION Adopt Ordinance No. 452 AN ORDIANANCE AMENDING TITLE 3, CHAPTER 2 THE CITY CODE, TOBACCO SALES. page 82 CITY OF MENDOTA HEIGHTS Dakota County, Minnesota Ordinance No. 452 AN ORDINANCE AMENDING TITLE 3, CHAPTER 2 THE CITY CODE, TOBACCO SALES WHEREAS, the City Council of the City of Mendota Heights desires to amend its Code of Ordinances regarding tobacco sales to prohibit smoking in licensed tobacco retail premises. NOW, THEREFORE, THE CITY OF MENDOTA HEIGHTS ORDAINS: Section 1. Mendota Heights City Code Title 3, Chapter 2 is hereby amended by adding the following definition to Section 3 -2 -2, to read as follows: Smoking: Inhaling or exhaling smoke from any lighted cigar, cigarette, pipe, or any other lighted tobacco or plant product. Smoking also includes carrying a lighted cigar, cigarette, pipe, or any other lighted tobacco or plant product intended for inhalation. Section 2. Mendota Heights City Code Title 3, Chapter 2 is hereby amended by adding the following paragraph to Section 3 -2 -6, to read as follows: B. Illegal Acts: Unless otherwise provided, the following acts shall be violations of this chapter: 5. Smoking: Notwithstanding any exceptions for tobacco products shops as set forth in the Minnesota Clean Indoor Air Act, no licensee shall directly or indirectly permit smoking in the licensed premises. All licensees under this section shall be responsible for the actions of their employees and patrons in regard to any smoking in the licensed premises. Section 3. Effective Date. This ordinance shall take effect upon its adoption and publication according to law. Adopted and ordained into an ordinance this 18th day of June, 2013. CITY OF MENDOTA HEIGHTS By Sandra Krebsbach, Mayor ATTEST: Lorri Smith, City Clerk 0 * CITY OF m MENDOTA HEIGHTS page 83 1101 Victoria Curve I Mendota Heights, 9b. 651.452.1850 phone 1 651.452.8940 an www.mendota- heights.com DATE: June 18, 2013 TO: Mayor, City Council, and City Administrator FROM: John R. Mazzitello, PE, PMP Public Works Director /City Engineer SUBJECT: Accept Bids and Award Contract for Highway 149 (Dodd Road) & Highway 110 Pedestrian Improvements BACKGROUND Staff completed a feasibility study analyzing potential pedestrian improvement projects at the intersection on State Trunk Highway 149 (Dodd Road) and State Trunk Highway 110. After receiving the completed feasibility study, Council authorized staff to seek a grant from the Metropolitan Council to complete an at -grade intersection improvement project to improve the safety of pedestrians utilizing the intersection. The City was awarded the grant for the 2013 construction year. Council approved the plans and specifications and authorized staff to bid the project at their January 15, 2013 meeting. Three bids (see below) were received and opened on Wednesday, June 5, 2013, at 10:00 a.m. for the Trunk Highway 149 (Dodd Road) & Trunk Highway 110 Intersection Improvements project. NAME OF BIDDER Urban Companies, LLC Bituminous Roadways, Inc. Northdale Construction Company AMOUNT OF BID $284,513.00 $302,207.23 $453,308.09 Urban Companies, LLC submitted the lowest responsible bid of $284,513.00. Their bid was 2.3% above the consultant's Engineer's Estimate of $302,207.23. Urban Companies, LLC is a contractor with over 20 years of experience, and is headquartered in Vadnais Heights, Minnesota. Urban Companies, LLC has not previously completed projects in Mendota Heights, but they come highly recommended by other municipalities. Additionally, many of the subcontractors proposed by Urban Companies, LLC have worked in Mendota Heights in the past and completed excellent projects. Staff recommends Urban Companies, LLC for this contract. The substantial completion date for the project is September 3, 2013. Within the coming weeks, staff, the City's consultant and Urban Companies, LLC will hold a preconstruction meeting at which time a full project schedule will be determined. Staff will post a general notice on the City's web page about the project and notify affected property owners after council awards the contract. Staff will continually update the web page with project updates. page 84 Intersection Improvements The project includes milling and overlaying the pavement over the entire intersection, constructing a new concrete island at the northeast corner of the intersection, constructing a new pedestrian safety island in the east median of Highway 110, installing new pedestrian countdown timers with audible warnings, painting new reflective crosswalks, and improving lighting. Interstate Valley Creek Trail Relocation A portion of Interstate Valley Creek Trail will be relocated to place the trail entirely in public land. Periodic closures of the trail (only as needed) will be posted. The existing trail will remain in use for as long as possible, and will be removed after construction of the relocated rail is complete. BUDGET IMPACT The total construction contract award is for $284,513.00. $218,481.00 is for the intersection pedestrian safety improvements. 80% ($174,784.80) of this cost will be covered by the Metropolitan Council grant. The Remaining 20% ($43,696.20) will be paid by the City. The trail relocation cost of $66,032.00 is not eligible for grant funds, and will be paid in full by the City. Construction administration is included in our consultant contract. All consultant services and City staff time will be paid by the City. RECOMMENDATION Staff recommends that the council accept the bids and award the construction contract to Urban Companies, LLC for their bid in the amount of $284,513.00. If city council wishes to implement the staff recommendation, pass a motion adopting RESOLUTION 2013 -43, A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE HIGHWAY 149 (DODD ROAD) & HIGHWAY 110 PEDESTRIAN IMPROVEMENTS PROJECT (PROJECT #200819). This action requires a simple majority vote. page 85 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2013 -43 A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE HIGHWAY 149 (DODD ROAD) & HIGHWAY 110 PEDESTRIAN IMPROVEMENTS PROJECT (PROJECT #200819) WHEREAS, pursuant to an advertisement for bids for the proposed construction of pedestrian safety improvements at the intersection of State Trunk Highway 149 (Dodd Road) and State Trunk Highway 110; and the relocation construction of a portion of Interstate Valley Creek Trail, bids were received, opened, and tabulated according to law and the following bids were received complying with said advertisement: NAME OF BIDDER Urban Companies, LLC Bituminous Roadways, Inc. Northdale Construction Company and AMOUNT OF BID $284,513.00 $302,207.23 $453,308.09 WHEREAS, the City Engineer recommended that the lowest responsible bid submitted by Urban Companies, Inc. of Vadnais Heights, Minnesota, be accepted. NOW THEREFORE BE IT RESOLVED, by the Mendota Heights City Council as follows: 1. That the bids for the above project are hereby received and accepted. 2. That the bid of Urban Companies, LLC of Vadnais Heights, Minnesota, submitted for the construction of the above described improvements be and the same is hereby accepted. 3. That the contract be awarded to Urban Companies, LLC of Vadnais Heights, Minnesota, and that the Mayor and Clerk are hereby authorized and directed to execute and deliver any and all contracts and documents necessary to consummate the awarding of said bids. Adopted by the City Council of the City of Mendota Heights this eighteenth day of June, 2013. CITY COUNCIL CITY OF MENDOTA HEIGHTS Sandra Krebsbach, Mayor ATTEST Lorri Smith, City Clerk Consulting Group, Inc. June 7, 2013 E N G I N E E R S P CANNERS ❑ E S I G N E R S Mr. John R. Mazzitello, PE, PIP, MB A Public Works Director /City Engineer CITY OF MENDOTA HEIGHTS 1101 Victoria Curve Mendota Heights, SIN 55118 SUBJECT: T.H. 110 AND T.H. 149 INTERSECTION IMPROVEM S.P. 140 - 010 -007, S.P. 1918 -112 (T.H. 110 =117) Dear Mr. Mazzitello: Sealed bids were opened for the referenced proj Heights City Hall. A total of three bids were received. The bids are tabulated below in order of value: page 86 SRF No.7795 0120 , June 5, 2013, ®e Mendota a been review °. and checked. CONTRACTOR TO :ID 1. Urban Companies, LLC $284,5 2. Bituminous Roadways, Inc. 0220V.23 3. Northdale tion Co., Inc. ,333.09 STIMATE $278,038.50 The low bid is 2.3 percen eve nal Engineer's °timate. The difference between the low and high bid is 59.3 •ercent. We reco $284,5, awarded to Urban Companies, LLC. in the amount of ons or concerns regarding this project. Sincerely, SRF CONSUL Robert Leba, PE Senior Associate BJL /gj d Enclosures cc: Chris Trboyevich, SRF Julie Dressel, MnDOT Office of State Aid H.AProjects\ 7795 \_Corressondence \Letters \20130607 Award RecommendationLetterpodd.doc www.srfconsulting.com One Carlson Parkway North, Suite 150 1 Minneapolis, MN 55447-4443 1 763.475.0010 Fax: 763.475.2429 An Equal Opportunity Employer