The URL can be used to link to this page

06-23-99 CCCITY OF OTSEGO REQUEST FOR COUNCIL, ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: 4A. Special Presentations Elaine Beatty, City Clerk/Zoning Administrator June 23,1999 - 6:30 PM ITEM NUMBER: ITEM DESCRIPTION 4. A.1. Steven R McDonald, Abdo, Abdo, Eick and Meyers, Accountant ( Audit Overview) BACKGROUND: 4. A.1. Attached is a copy of the Draft Annual Financial Report and letter for year ending December 31, 1998. Mr. Steve McDonald from the accountants office will give a brief overview and discussion with the Mayor and Council. RECOMMENDATION: This is for Council consideration and any approval if they agree. Th4nks, Elaine CITY OF OTSEGO OTSEGO, MINNESOTA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1998 CITY OF OTSEGO, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 1998 I. INTRODUCTORY SECTION City Council and Officials II. FINANCIAL SECTION Independent Auditor's Report General Purpose Financial Statements Page No. Combined Balance Sheet - All Fund Types and Account Group 3 - 4 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types 5 - 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 7 Combined Statement of Revenue, Expenses and Changes in Retained Earnings - Proprietary Fund Type 8 Combined Statement of Cash Flows - Proprietary Fund Type 9 Notes to Financial Statements 10-20 Combining and Individual Fund Statements General Fund Comparative Balance Sheets 21 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual 22-26 Special Revenue Funds Combining Balance Sheet 27-28 Combining Statement of Revenue, Expenditures and Changes in Fund Balance 29-30 Debt Service Funds Combining Balance Sheet 31 -32 Combining Statement of Revenue, Expenditures and Changes in Fund Balance 33-34 Capital Projects Funds Combining Balance Sheet 35-36 Combining Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit) 37-38 Required Supplementary Information (Unaudited) 39 III. OTHER REPORTS Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Government Auditing Standards 40-41 Independent Auditor's Report on Legal Compliance 42 INTRODUCTORY SECTION CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 1998 CITY OF OTSEGO, MINNESOTA CITY COUNCIL AND OFFICIALS DECEMBER 31, 1998 Term Expires Larry Fournier Mayor 2000 Virginia Wendel Council Member 2000 Mark Berning Council Member 2000 Vern Heidner Council Member 1998 Suzanne Ackerman Council Member 1998 Mike Robertson City Administrator Judy Hudson Treasurer Elaine Beatty City Clerk/Zoning Administrator FINANCIAL SECTION CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 1998 II "- MEYE W LLP Certified Puhlic Accountants & Consultants ,241 Ohms lane Suite 200 Minneapolis. MN 55439 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Otsego, Minnesota We have audited the accompanying general purpose financial statements of the City of Otsego, Minnesota, as of and for the year ended December 31, 1998 as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Otsego, Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The general purpose financial statements referred to above do not include the General Fixed Assets Account Group. The City does not maintain detailed fixed asset records and the amount that should be recorded in the General Fixed Assets Account Group is not known. In our opinion, except for the effects on the general purpose financial statements of such adjustments, if any, as might have been determined to be necessary had we audited the General Fixed Assets Account Group, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Otsego, Minnesota as of December 31, 1998 and the results of its operations and the cash flows of its proprietary fund type for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated May 20, 1999 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City of Otsego, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. May 20, 1999 Minneapolis, Minnesota 612.£335.9090 • Fax 612.835.3261 1 }b D a cL-5 ni-r-:5, LLP ABDO, ABDO, EICK & MEYERS, LLP Certified Public Accountants GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 1998 CITY OF OTSEGO, MINNESOTA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP DECEMBER 31, 1998 (With comparative totals for December 31, 1997) ASSETS AND OTHER DEBITS ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Accounts receivable Special assessments receivable Due from other governments Fixed assets, net OTHER DEBITS Amount available in the debt service fund Amount to be provided for debt retirement TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable Accrued salaries and benefits payable Deferred revenue Capital lease payable Bonds payable TOTAL LIABILITIES EQUITY AND OTHER CREDITS Contributed Capital Retained earnings Unreserved Fund balance Reserved Unreserved Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY AND OTHER CREDITS See Notes to Financial Statements. -3- Governmental Fund Types Special Debt General Revenue Service $ 594,562 $ 251,943 $ 643,650 10,902 4,603 7,340 54,654 1,088 - 3,208 - - 1,006 104,280 392,597 7,640 - - $ 671,972 $ 361,914 $ 1,043,587 $ 43,950 $ 30,124 $ 1,500 6,271 - - 33,807 96,545 392,414 84,028 126,669 393,914 649,673 587,944 235,245 - 587,944 235,245 649,673 $ 671,972 $ 361,914 $ 1,043,587 649,673 416,017 4,005,722 - - - 4,828,911 1,133,891 4,005,722 699,203 - - 6,177,787 1,608,583 $ 4,181,897 $ 843,327 $ 847 $ 5,593,939 $ 12,697,483 $ 3,861,156 -4- Proprietary Fiduciary Account Totals (continued) Fund Types Fund Type Group (Memorandum Only) General Capital Long-term Projects Enterprise Agency Debt 1998 1997 $ 4,106,493 $ 25,295 $ 847 $ - $ 5,622,790 $ 1,569,166 46,107 518 - - 69,470 15,159 - 2,749 - - 58,491 49,821 - 1,077 - - 4,285 13,283 29,297 - - - 527,180 725,737 - _ _ _ 7,640 32,055 - 813,688 - - 813,688 191,323 _ _ - 649,673 649,673 416,017 _ - - 4,944,266 4,944,266 848,595 $ 4,181,897 $ 843,327 $ 847 $ 5,593,939 $ 12,697,483 $ 3,861,156 $ 148,915 $ 2,415 $ 847 $ -$ 227,751 $ 79,419 - _ _ 6,271 4,171 27,260 1,709 - - 551,735 745,371 - _ - 323,939 323,939 359,612 - 140,000 - 5,270,000 5,410,000 1,064,000 176,175 144,124 847 5,593,939 6,519,696 2,252,573 - 627,535 - - 627,535 - - 71,668 - - 71,668 58,675 649,673 416,017 4,005,722 - - - 4,828,911 1,133,891 4,005,722 699,203 - - 6,177,787 1,608,583 $ 4,181,897 $ 843,327 $ 847 $ 5,593,939 $ 12,697,483 $ 3,861,156 -4- CITY OF OTSEGO, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1998 (With comparative totals for the year ended December 31, 1997) REVENUE Property taxes Licenses and permits Intergovernmental Charges for services Special assessments Interest on investments Miscellaneous TOTAL REVENUE EXPENDITURES Current General government Public safety Public works Sanitation Culture and recreation Capital outlay Debt service Principal Interest and other TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Bond proceeds Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. -5- 543,894 154,749 67,315 - 307,852 - 32,506 - - 45,160 40,224 - 24,110 70,634 - 135,000 119,657 1,108,271 178,173 254,657 238,054 (35,001) (91,889) 47,074 59,032 - - - 325,545 (202,068) (1,964) - (154,994) 57,068 325,545 83,060 22,067 233,656 504,884 213,178 416,017 $ 587,944 $ 235,245 $ 649,673 Special Debt General Revenue Service $ 767,583 S 15,121 $ - 103,473 - - 375,652 1,095 - 46,105 92,314 - 811 - 146,538 24,052 10,178 16,230 28,649 24,464 - 1,346,325 143,172 162,768 543,894 154,749 67,315 - 307,852 - 32,506 - - 45,160 40,224 - 24,110 70,634 - 135,000 119,657 1,108,271 178,173 254,657 238,054 (35,001) (91,889) 47,074 59,032 - - - 325,545 (202,068) (1,964) - (154,994) 57,068 325,545 83,060 22,067 233,656 504,884 213,178 416,017 $ 587,944 $ 235,245 $ 649,673 - Totals 573,677 Capital (Memorandum Only) Projects 1998 1997 $ - $ 782,704 $ 743,548 - 103,473 82,693 - 376,747 436,605 - 138,419 104,071 13,073 160,422 157,486 96,723 147,183 67,633 6,739 59,852 165,166 116,535 1,768,800 1,757,202 - 543,894 573,677 - 222,064 230,730 - 307,852 299,891 - 32,506 40,469 - 85,384 43,233 729,216 823,960 97,421 - 135,000 65,000 - 119,657 51,536 729,216 2,270,317 1,401,957 (612,681) (501,517) 355,245 281,054 387,160 54,583 4,104,648 4,430,193 - (183,128) (387,160) (54,583) 4,202,574 4,430,193 - 3,589,893 3,928,676 355,245 415,829 1,549,908 1,194,663 $ 4,005,722 $ 5,478,584 $ 1,549,908 -6- CITY OF OTSEGO, MINNESOTA STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 1998 FUND BALANCE, JANUARY 1 504,884 FUND BALANCE, DECEMBER 31 $ 587,944 See Notes to Financial Statements. -7- Variance - Favorable Budget Actual (Unfavorable) REVENUE Property taxes $ 761,505 $ 767,583 $ 6,078 Licenses and permits 60,600 103,473 42,873 Intergovernmental 349,873 375,652 25,779 Charges for services 21,575 46,105 24,530 Special assessments - 811 811 Interest on investments 18,000 24,052 6,052 Miscellaneous 22,000 28,649 6,649 TOTAL REVENUE 1,233,553 1,346,325 112,772 EXPENDITURES Current General government 606,697 543,894 62,803 Public safety 136,806 154,749 (17,943) Public works 364,421 307,852 56,569 Sanitation 32,000 32,506 (506) Culture and recreation 30,382 45,160 (14,778) Capital outlay 22,425 24,110 (1,685) TOTAL EXPENDITURES 1,192,731 1,108,271 84,460 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 40,822 238,054 197,232 OTHER FINANCING SOURCES (USES) Operating transfers in - 47,074 47,074 Operating transfers out (53,321) (202,068) (148,747) TOTAL OTHER FINANCING SOURCES (USES) (53,321) (154,994) (101,673) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (12,499) 83,060 $ 95,559 FUND BALANCE, JANUARY 1 504,884 FUND BALANCE, DECEMBER 31 $ 587,944 See Notes to Financial Statements. -7- CITY OF OTSEGO, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE YEAR ENDED DECEMBER 31, 1998 Enterprise OPERATING REVENUE Charges for services $ 2,770 OPERATING EXPENSES Other services and charges 5,080 Utilities 442 Depreciation 5,170 TOTAL OPERATING EXPENSES 10,692 OPERATING LOSS (7,922) NONOPERATING REVENUE (EXPENSE) Interest on investments 1,147 Property taxes 28,911 Interest expense (9,143) TOTAL NONOPERAT NG REVENUE (EXPENSE) 20,915 NET INCOME 12,993 RETAINED EARNINGS, JANUARY 1 58,675 RETAINED EARNINGS, DECEMBER 31 $ 71,668 See Notes to Financial Statements. -8- CITY OF OTSEGO, MINNESOTA COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE YEAR ENDED DECEMBER 31, 1998 CASH FLOWS FROM OPERATING ACTIVITIES Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Other income related to operations Depreciation (Increase) decrease in assets: Delinquent taxes Accounts Receivable Due from other governments Increase (decrease) in liabilities: Accounts and contracts payable Deferred revenue NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on revenue bonds Interest paid on revenue bonds NET CASH USED BY CAPITAL AND RELATED FINANCIAL ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY I CASH AND CASH EQUIVALENTS, DECEMBER 31 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Property and equipment acquired from other funds See Notes to Financial Statements. -9- Enterprise S (7,922) 28,911 5,170 484 (1,077) 190 2,380 (239) 27,897 (19,000) (9,143) (28,143) 921 675 24,620 S 25,295 S 627,535 CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Otsego operates undean"Optional foto° member council definedThe Council exerocises legislativeMinnesota authority and es. The �ty is governed by an elected mayor determines all matters of policy. The Council appoints personnel responsible or thee proper a fumianc ration o all affairs relating to the City. As required by generally accepted accounting p pl statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component nits, although legally separate entities, are, in substance, part of the City's operations and so data from these units are combined with data of the primary government. The blended component unit has a December 31 year end. Blended Component Unit to innesota tatutes The Economic Developmentout economic and industrial development and tredeve redevelopmentconsistent with0 through 46 established to carryve member policies established by the City ec ise anyeoflthe powers engeneral d by the authorizing statu es without e Mayor. The Authority may no ex prior approval of the City Council. The activities of this fund are blended within the general fun B. Measurement Focus, Basis of Accounting and Basis of Presentation ups. A fund is d account The accounts is the City are organized and operated on the basis of funds d accounting entity with a self -balancing set f accounts. Fund accounting segregates a independent fiscal ang funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds are maintained consistent with legal andof theg governmental funds noAccount re ora d direcly in those fgundsice to account for certain assets and liabilities The City has the following fund types and account groups: �erai government activities. Governmental funds are used financial account for the es mes'u e types use the now of currentment focus and the modified accruaGovernmentald basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when unt fthe transto action accrual (i.e., when anew are "available" "measurable and n avail ablele " thin the current per od or sooeasurable" means the n enough thfter t can liabilities determined, pay liabilities of the currentenditurese are recorded when all revenues d fund liability is incurredcollected except for 60 days after year end. Exp unmatured interest on general long-term debt which is recognized when due, and certain compensate absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. to accrual. Other ents are le Property taxes, franchisetaxes, measurable and available when cash is received by the government eceipts and taxes b and are recognized as revenue at that time. al statements in nl with e accepted u ting The preparation of genaoand assumptoshat afft certain reported and principles requires management make estimates disclosures. Accordingly, actual results could differ from those estimates. r if the e to ccrual Entitlements and shared revenues arditure driv ne rants are recognized s revenue wherecord at the time of receipt or netthe qualifying expenditures have criteria are met. Expe g been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. -10- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED The special revenue funds account for revenue sources that are legally restricted to expenditures for specified purposes (not including major capital projects). The debt service funds account for the servicing of general long-term debt not being financed by proprietary funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary funds. Proprietaryfunds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable FASB pronouncements issued on or before November 30, 1989 in accounting and reporting for its proprietary operations. Proprietary funds include the following fund type: Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the Council has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Fiduciaryfunds account for assets held by the government in a trustee capacity or as an agent on behalf of others. The agency fund is custodial in nature and does not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for assets that the government holds for others in an agency capacity. Account Group. The general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Assets, Liabilities and Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements and shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. Investment cost was not materially different from fair value in either 1998 or 1997. As a result, investments are stated at cost. Property Taxes The City Council annually adopts a tax levy and certifies it to the County for collection. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July, and December each year. Taxes payable on homestead property, as defined by State statutes, are partially reduced by a homestead and agricultural credit aid. The credit is paid to the City by the State of Minnesota in lieu of taxes levied against homestead property. The State remits this credit in two equal installments in July and December each year. Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by a deferred revenue liability for delinquent taxes not received within 60 days after year end. -11- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL 3151998r,IENTS Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Special Assessments aid for by benefiting property owners. Special assessments represent the financing for public improvements p These assessments are recorded as receivables upon certification to the County. -ived in cash or within 60 days after year e recognized as revenue when Special assessments aroffset a deferred revenue liability. end. All special assessments receivable are o Receivables and Payables arrangements outstanding at the end orrowing ables" (i.e., the current portion of interfund Transactions between funds that are representative of lending/b All other of the fiscal year are referred to as either"inee non-current portion of interfund loans). loans) or "advances between other funds (•• outstanding balances between funds are reported as "due to/from other funds"• Fined Assets Plant and ds of the City are recorded at cost. Property, p Property, plant and equipment in the prodde p operations funds are recorded at their estimated fair value at the equipment donated to these proprietary date of donation. cost of normal maintenance and repairs that do tidos add to the value of the asset or materially extend The c fan assets' lives are not capitalized in the proprietary funds � Projects are P rovements are capitalized in proprietary fund fixed assets is reflected in the Major outlays for capital assets and inthe construction phase of proprietary r the sameperiod. Major constructed. Interest incurred during ve capitalized value of the asset constructed, net of interest earned on the invested proceeds d or sold, the related P are property and equipment of the enterprise funds are stated at cost. WhenSeam or loss on disposition is P ed against operations while cost and accumulated depreciation are removed from expenditures are chug ccounts and y g roe and included in operations. Repair and maintenance exp basis over the estimated useful lives of the assets which are as expenditures which increase the useful life of the asset are capitalized and depreciated. e property equipment is depreciated on a straight-line follows: Estimated Use.E11 Life Assets 40 years Municipal well Compensated Absences ick leave earned is not payable upon separation from the Accumulated unpaid vacation pay at year end was not material and therefore, is not recorded as a liability in the general long-term debt account group. Unused ensated absences at year end. City. Therefore, there is no liability for comp Long-term Obligations general long-term debt account The City reports long-term debt of governmental funds at face value in the Certain other g ou Long-term debt and other overnmental fund obligations nota rm debt accounit grCe pWl� current available group. C general long funds. financial resources are al Toore pow fundsa e reported as liabilities in the appropriate obligations financed by proprietary -12- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other financing source net of the applicable premium or discount. Issuance costs, other than those withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight line method. Issuance costs are reported as expense in the year incurred. Fund Equity Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or cash flows in accordance with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Comparative Data/Reclassifications Comparative total data for the prior year have been presented in the selected sections of the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. In August of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before October 31, the proposed budget is presented to the City's council for review. The council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The City's department heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Administrator. The legal level of budgetary control is the department level. B. Deficit Fund Equity The following fund had deficit fund balance as of December 31, 1998. The deficit in this fund will be eliminated by future revenue sources. Capital Projects Fund 1998 Odean Project =$==13=!=326 -13- Note 3: i. CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A. Deposits and Investments Cash balances of the City's funds are combined (pooled) and invested to the extent available in various investments authorized by Minnesota State Statutes. Each fund's portion of this pool (or pools) is displayed on the financial statements as "cash and investments." For purposes of identifying the risk of investing public funds, the balances are categorized as follows: Deposits In accordance with Minnesota Statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other State or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral At year end, the City's carrying amount of deposits was $3,306,649 and the bank balance was $3,379,309. The bank balance was covered by federal depository insurance and by collateral held by the City's agent in the City's name. Investments Investments are categorized into these three categories of credit risk: 1. Insured or registered, or securities held by the City or its agent in the City's name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. At year end, the City's investment balances were as follows: Category Carrying Fair 1 2 3 Amount Value U.S. Government $ $ - $ 115,622 $ 116,884 Securities $ 115,622 1,500,929 1,500,929 Commercial Paper 1,500,929 - - Total $1,616.551 $ - $ - $ 1616,551 $ 1,617,813 Investments not subjected to categorization: 699.590 699,590 Broker Money Market $ 2,316.141 $ 2,317,403 Total -14- _6. CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED A reconciliation of cash and temporary investments as shown on the Combined Balance Sheet for the City follows: Checking $ 46,153 Savings 172,515 Certificates of Deposit 3,087,981 Total deposits 3,306,649 Investments 2,316,141 Total cash and temporary investments $5,622,790 B. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 1998. C. Due From Other Governments The General Fund has $5,000 due from the state and $2,640 due from a local government. D. Fixed Assets A summary of the Proprietary Fund Type property, plant and equipment at December 31, 1998 follows: Municipal well $ 206,836 Work in process 627,535 Total fixed assets 834,371 Less accumulated depreciation (20,683) Net fixed assets _$8 13,..6 8 8 E. Deferred Revenue Deferred revenue at December 31, 1998 is comprised of the following: F. Long-term Debt General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both general government and proprietary activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the government. General obligation bonds currently outstanding are as follows: -15- Special Debt Capital General Revenue Service Proiects Enterprise Total Grants $ - $ 1,405 $ - $ - $ - $ 1,405 Taxes - delinquent 32,801 650 - - 1,709 35,160 Special assessments Delinquent - 8,701 10,923 - - 19,624 Deferred 1,006 85,789 381,491 27,260 - 495,546 Total $ 33,807 $ 96,545 $ 392,414 1_21.2-60 $ 1,709 $ 551,735 F. Long-term Debt General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both general government and proprietary activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the government. General obligation bonds currently outstanding are as follows: -15- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS — CONTINUED General Long -Term Debt General Obligation Improvement Bonds The following bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. Some issues, however, are partly financed by ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment and tax levy equals 105% of the amount required for debt service. The excess of 5% is to cover any delinquencies in tax or assessment payments. Authorized Balance at and Issued Interest Rate Issue Date Maturity Date Year End G.O. Improvement Bonds of 1987 $ 415,000 6.00% 2-01-87 2-01-99 $ 50,000 G.O. Improvement Bonds of 1991 210,000 6.25 8-26-91 8-01-03 125,000 G.O. Improvement Bonds of 1996 665,000 4.75-5.60 8-01-96 2-01-07 595,000 Total General Obligation Improvement Bonds 770,000 General Obligation Revenue Bonds The following bonds were issued to finance the city water and sewer system. It will be repaid primarily through connection, user changes and tax levies. The bonds are backed by the full faith and credit of the City. G.O. Water Revenue Bonds of 1994 $ 210,000 5.75% 10-01-94 10-01-04 140,000 G.O. Water and Sewer Revenue Bonds of 1998, Series A 4,500,000 6.50-4.50 8-01-98 12-01-20 4,500,000 Total General Obligation Revenue Bonds 4,640,000 Total General Obligation Bonds $ 5,410,000 Other General Long-term Debt Capital Leases During 1992, the City entered into a lease with option to purchase, agreement as lessee for financing a building project in accordance with Minnesota Statutes 469.001 through 469.048. This agreement is with the Otsego Economic Development Authority. The lease period is for a 15 year period through the year 2006. After the final lease payment, the title to the building will transfer to the City. The City is responsible for all operating expenses, insurance, etc. The lease has been recorded at the present value of the future minimum lease payments as of the date of its inception. In addition, $149,668 remains in the Municipal Building Capital Projects Fund. To the extent the proceeds are not expended for the project, they may be used to reduce the future lease payments. The lease payments are recorded in the City Hall department of the general fund as rent payments. Authorized Balance at and Issued Interest Rate Issue Date Maturity Date Year End Municipal building lease $ 450,000 6.00% 12-01-92 12-01-07 $ 314,000 -16- Note 3: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED During 1994, the City entered into a capital lease for financing the purchase of a public works vehicle. At the end of the lease term, title transfers to the City. Lease purchase $ 90,662 5.50% 1994 11-02-98 9,939 Total Capital Leases General Long-term Debt $ 323,939 Changes in General Long-term Liabilities G.O. During the year ended December 31, 1998, the following changes occurred in liabilities reported in the General Long-term Debt Account Group: Improvement Capital Revenue Balance December 31, Bonds Balance January 1 Additions Reductions December 31 Capital leases $ 359,612 $ - $ 35,673 $ 323,939 G.O. Bonds 905,000 4,500,000 135,000 5,270,000 Total $1,264,612 $ 4,500,000 $ 170,673 $ 5,593,939 The annual requirements to amortize all debt outstanding as of December 31, 1998 are as follows: Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of long-term debt totaled $649,673 at year end. Amounts to be Provided for Long-term Debt. This represents future revenue to be generated for debt payments, generally including interest earnings, scheduled tax levies and deferred (future) special assessment levies. -17- Enterprise General Long-term Debt Debt G.O. G.O. Year Ending Improvement Capital Revenue December 31, Bonds Leases Bonds Total 1999 $ 407,219 $ 54,272 $ 28,050 $ 489,541 2000 465,415 42,500 27,900 535,815 2001 482,618 40,940 28,693 552,251 2002 497,860 39,380 28,370 565,610 2003 472,303 53,340 27,990 553,633 Thereafter 5,792,033 188,160 28,552 6,008,745 Total 8,117,448 418,592 169,555 8,705,595 Less interest (2,847,448) (94,653) (29,555) (2,971,656) Principal $ 5,270,000 $ 323,939 $ 140,000 $ 5,733,939 Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of long-term debt totaled $649,673 at year end. Amounts to be Provided for Long-term Debt. This represents future revenue to be generated for debt payments, generally including interest earnings, scheduled tax levies and deferred (future) special assessment levies. -17- ate 3: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS — CONTINUED G. Contributed Capital The changes in the government's contributed capital account for its proprietary fund were as follows: Enter Water Sources and_Sewer Beginning balance, contributed capital $ 627.535 Contributed assets from other funds Ending balance, contributed capital S 627,535 H. Fund Equity Reservations and Designations The following amounts have been reserved in the appropriate funds: PL— roSe — Reserved Debt Service Funds Debt service Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE Amount _L649 A. Plan Description All full-time and certain part-time employees of the City at Otsego are covered by def PeERA aedfimtiPianrs the administered by the Public Employees Retirement Association of Minnesota It P oempp oyer retirement plan. This Public Employees Retirement Fund (PERF) which is a cost-sharing, plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. c Plan. Plan ers PERF members belong to it sand the ic Plan members are of Allthe lnew members mustCoordinated a bin the e covered by Social Security Coordinated Plan. survivorsts to and PERA provides retirement be efits as s are ell as disabi it State Statute and vest afte rthreets to members,l years of credited on death of eligible members. B for an five service. The defined retirement benefits are based on a member's highest average salary Y successive years of allowable service, age and years of credit at termination of service. he Two methods are used to compute benefits for PERF's Coordinated ander d 1 sic Plan or a embers. T formula retiring member receives the higher of the step -rate benefit accrual formula (N1 ) (Method 2). Under Method 1, sthe annuity al for each of the firstl rate o 10 yyearls of sery service band 2er h5 percent for oeach July 1, 1997 is 2.0 percent of average dry remaining year. The annuity accrual rate for Basic members who retire on or after July 1, 1997 is 2.2 For percent rcent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. Coordinated Plan member who retires before July 1, 1997, the annuity accrual rate is 1.0 ordinate members who P�rcent of average salary for each of the first 10 years and 1.5 percent for each remainin year. F r Co1.2 percent of average retire on or after July 1, 1997, the annuity accrual rates increase by percent thod 2, the annuity salary for each ofthe first 10 years and percent Plan members and 1 5 percent o sCoordinated Plan accrual rate is 2.5.5 percent of average salaryor Bas members who retire before =ullE11,, 1997.Annuity members acannuityrates scalculated using M thodincrease 0.2 percent for rI ea full annuity iss on or after July 1, 1997. Fo available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. rmal is a lifetime There are different types of annuities the ilabllretireeo n e tembe rvoroannuity is payable. ent. A oTher are atlso various types annuity that ceases upon the death -18- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 4: DEFINED BENEFIT PENSION PLANS — STATEWIDE - CONTINUED of joint and survivor annuity options available, which will reduce the monthly normal annuity amount, because annuity is 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 receiving them yet 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 PERF. That report may be obtained by writing to PERA, 514 St. Peter Street, #200, St. Paul, Minnesota 55102 or by calling (651)296-7460 or 1-800-652-9026. 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. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75%, respectively, of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 1998, 1997, and 1996 were $9,796, $10,783 and $11,847, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 5: OTHER INFORMATION A. Legal Debt Margin In accordance with Minnesota Statutes, the City may not incur or be subject to net debt in excess of two percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and therefore, excludes debt financed partially or entirely by special assessments, enterprises fund revenues or tax increments. B. 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 for which the City carries insurance The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $1,000,000. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. 960 Note 5: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 OTHER INFORMATION - CONTINUED C. Segment Information for Enterprise Funds The City provides water which is accounted for in an Enterprise Fund. The segment information for the Enterprise Fund for the year ended December 31, 1998 is as follows: D. Subsequent Events In 1999, the City passed resolutions for the sale of $1,800,000 general obligation improvement bonds of 1999, series B and $2,595,000 general obligation sewer and water revenue bonds of 1999, series A. -20- Water Operating revenue $ 2,770 5,170 Depreciation expense (7,922) Operating loss 12,993 Net income Net working capital 5,515 Total assets 843,327 Total equity 699,203 Fixed asset addition 627,535 627,535 Contributed capital 140,000 Bonds payable 28,911 Property tax revenue D. Subsequent Events In 1999, the City passed resolutions for the sale of $1,800,000 general obligation improvement bonds of 1999, series B and $2,595,000 general obligation sewer and water revenue bonds of 1999, series A. -20- THIS PAGE IS LEFT BLANK INTENTIONALLY COMBINING AND INDIVIDUAL FUND STATEMENTS CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 1998 CITY OF OTSEGO, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 1998 AND 1997 ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Special assessments receivable Deferred Accounts receivable Due from other governments TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Accrued salaries and benefits Deferred revenue TOTAL LIABILITIES FUND BALANCE Unreserved Undesignated TOTAL LIABILITIES AND FUND BALANCE -21- 1998 1997 $ 594,562 $ 506,182 10,902 5,566 54,654 45,679 1,006 - 3,208 1,218 7,640 29,383 $ 671,972 $ 588,028 $ 43,950 $ 51,531 6,271 4,171 33,807 27,442 84,028 83,144 587,944 504,884 $ 671,972 $ 588,028 CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1998 (With comparative actual amounts for the year ended December 31, 1997) REVENUE Property taxes Licenses and permits Business Nonbusiness Total Intergovernmental Federal FEMA State Local government aid Property tax credits Police aid State aid for streets Other state grants Local Total Charges for services General government Culture and recreation Recycling Total Miscellaneous Interest on investments Special assessments Rent Franchise fees Refunds and reimbursements Other 1998 1997 Variance - Favorable Budget Actual (Unfavorable) Actual $ 761,505 $ 767,583 $ 6,078 $ 727,992 7,000 4,725 (2,275) 4,740 53,600 98,748 45,148 77,953 60,600 103,473 42,873 82,693 - 2,672 2,672 27,652 121,018 121,018 - 103,068 146,855 146,799 (56) 152,912 8,000 6,718 (1,282) 5,937 74,000 77,001 3,001 73,757 - 21,444 21,444 33,540 - - - 17,034 349,873 375,652 25,779 413,900 16,000 40,486 24,486 11,167 2,575 1,556 (1,019) 3,529 3,000 4,063 1,063 5,070 21,575 46,105 24,530 19,766 18,000 24,052 6,052 25,316 - 811 811 - 14,300 16,428 2,128 14,166 7,100 8,846 1,746 8,285 - 3,273 3,273 5,451 600 102 (498) 9,068 Total 40,000 53,512 13,512 62,286 TOTAL REVENUE 1,233,553 1,346,325 112,772 1,306,637 -22- CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1998 (With comparative actual amounts for the year ended December 31, 1997) Clerk/Treasurer Personal services - - - 17,633 Supplies 600 708 (108) 431 Other services and charges 26,695 26,204 491 20,783 Total 27,295 26,912 383 38,847 -23- 1998 1997 Variance - Favorable Budget Actual (Unfavorable) Actual EXPENDITURES Current General Government Mayor and council Personal services $ 35,360 $ 30,453 $ 4,907 $ 32,107 Supplies - - - 146 Other services and charges 37,050 8,014 29,036 6,103 Total 72,410 38,467 33,943 38,356 Administration Personal services 122,915 149,054 (26,139) 112,996 Supplies 34,650 33,087 1,563 26,529 Other services and charges 98,900 60,733 38,167 36,191 Total 256,465 242,874 13,591 175,716 Planning commission Personal services 3,300 3,445 (145) 3,155 Supplies 100 - 100 98 Other services and charges 300 - 300 179 Total 3,700 3,445 255 3,432 Assessor Personal services 16,560 18,623 (2,063) 15,236 Supplies - - - 74 Other services and charges 200 157 43 403 Total 16,760 18,780 (2,020) 15,713 Engineer Other services and charges 52,000 40,466 11,534 114,260 Planner Other services and charges 53,500 45,523 7,977 49,436 Clerk/Treasurer Personal services - - - 17,633 Supplies 600 708 (108) 431 Other services and charges 26,695 26,204 491 20,783 Total 27,295 26,912 383 38,847 -23- CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1998 (With comparative actual amounts for the year ended December 31, 1997) EXPENDITURES - CONTINUED Current - Continued General Government Legal Other services and charges EDA Personal services Supplies Other services and charges Total City hall Personal services Supplies Other services and charges Total Old town hall Other services and charges Total General Government Public Safety Police Other services and charges Building inspection Supplies Other services and charges Total Code enforcement Other services and charges Animal control Other services and charges Total Public Safety 1998 Variance - Favorable Budget Actual (Unfavorable) 1997 $ 40,000 $ 41,303 $ (1,303) $ 51,518 1,291 320 971 37 200 - 200 - 5,000 - 5,000 280 6,491 320 6,171 317 2,326 1,806 520 1,593 2,650 2,176 474 184 73,100 67,643 5,457 84,305 78,076 71,625 6,451 86,082 - 14,179 (14,179) - 606,697 543,894 62,803 573,677 -24- 103,806 103,806 100,740 - - - 30 29,500 48,010 (18,510) 37,581 29,500 48,010 (18,510) 37,611 - 969 (969) - 3,500 1,964 1,536 572 136,806 154,749 (17,943) 138,923 CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1998 (With comparative actual amounts for the year ended December 31, 1997) Parks Personal services 1,291 610 681 918 Supplies - - - 1,038 Other services and charges 8,000 17,072 (9,072) 11,142 Total 9,291 17,682 (8,391) 13,098 Heritage preservation 1998 1997 Personal services 1,291 670 Variance - - Supplies 800 231 Favorable 774 Other services and charges Budget Actual (Unfavorable) Actual EXPENDITURES - CONTINUED Total 6,091 8,475 Current - Continued 2,476 Total Culture and Recreation Public Works 45,160 (14,778) 34,636 Streets and highways 1,170,306 1,084,161 86,145 1,087,596 Personal services $ 120,985 $ 102,403 $ 18,582 $ 103,323 Supplies 45,540 40,500 51040 44,420 Other services and charges 185,896 151,926 33,970 140,299 Total 352,421 294,829 57,592 288,042 Street lighting 12,000 13,023 (1,023) 11,849 Total Public Works 364,421 307,852 56,569 299,891 Sanitation Recycling Professional services 32,000 32,506 (506) 40,469 Culture and Recreation Community recreation Personal services 15,000 19,003 (4,003) 19,062 Parks Personal services 1,291 610 681 918 Supplies - - - 1,038 Other services and charges 8,000 17,072 (9,072) 11,142 Total 9,291 17,682 (8,391) 13,098 Heritage preservation Personal services 1,291 670 621 - Supplies 800 231 569 774 Other services and charges 4,000 7,574 (3,574) 1,702 Total 6,091 8,475 (2,384) 2,476 Total Culture and Recreation 30,382 45,160 (14,778) 34,636 Total Current Expenditures 1,170,306 1,084,161 86,145 1,087,596 -25- CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 1998 (With comparative actual amounts for the year ended December 31, 1997) EXPENDITURES - CONTINUED Capital Outlay General government Public works Parks and recreation Total Capital Outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) 1998 1997 Variance - Favorable Budget Actual (Unfavorable) Actual $ - $ 2,620 22,425 21,490 (2,620) 935 $ 3,378 20,759 3,125 22,425 24,110 (1,685) 27,262 1,192,731 1,108,271 84,460 1,114,858 40,822 238,054 197,232 191,779 47,074 47,074 - (53,321) (202,068) (148,747) (54,583) (53,321) (154,994) (101,673) (54,583) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ (12,499) FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 -26- 83,060 $ 95,559 504,884 $ 587,944 137,196 367,688 $ 504,884 CITY OF OTSEGO, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1998 (With comparative totals for December 31, 1997) ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Special assessments receivable Delinquent Deferred Due from other governments TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Deferred revenue TOTAL LIABILITIES FUND BALANCE Unreserved Undesignated TOTAL LIABILITIES AND FUND BALANCE -27- $ 84,945 1,207 Self Park Funding Development Insurance $ 9,121 $ 16,653 92 307 1,088 - 18,491 - - 85,789 - - $ 190,432 $ 10,301 $ 16,960 $ 12,010 $ - $ - 94,490 650 - 106,500 650 - 83,932 9,651 16,960 $ 190,432 $ 10,301 $ 16,960 Ca ital Park and Park Park Totals P Equipment Recreation Shelter Tree 1998 $ 134,443 $ 1,547 $ 5,101 $ 133 $ 251,943 2,997 - - - 4,603 _ _ 1,088 1997 $ 201,025 1,089 909 18,491 16,757 85,789 161,820 - 2,482 $ 137,440 $ 1,547 $ 5,101 $ 133 $ 361,914 $ 384,082 $ 17,972 $ 142 $ - $ - $ 30,124 $ 31 - 1,405 - - 96,545 170,873 17,972 1,547 - - 126,669 170,904 119,468 - 5,101 133 235,245 213,178 $ 137,440 $ 1,547 $ 5,101 $ 133 $ 361,914 $ 384,082 -28- CITY OF OTSEGO, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1998 (With comparative totals for the year ended December 31, 1997) REVENUE Property taxes Intergovernmental Charges for services Special assessments Miscellaneous Park dedication fees Refunds and reimbursements Other Interest on investments TOTAL REVENUE EXPENDITURES Current Public safety Culture and recreation Capital outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND FINANCING OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 -29- Self Park Funding Fire Development Insurance $ - $ 15,121 $ 91,830 - - 15,100 - - 3,363 - 3,390 - 2,669 203 679 94,499 33,814 4,042 67,315 - - - 29,021 - 52,462 - 67,315 81,483 - 27,184 (47,669) 4,042 27,184 (47,669) 4,042 56,748 57,320 12,918 $ 83,932 $ 9,651 $ 16,960 Capital Park and Park Park Totals Equipment Recreation Shelter Tree 1998 1997 $ _ $ - $ 15,121 $ 15,095 - 1,095 - - 1,095 - _ 484 - - 92,314 84,305 _ 3,209 15,100 77,825 3,363 5,506 - 2,611 - - 6,001 - 6,627 - - - 10,178 5,209 6,627 4,190 - - 143,172 191,149 _ _ _ _ 67,315 91,807 - 10,726 - 477 40,224 8,597 18,172 - - - 70,634 - 18,172 10,726 - 477 178,173 100,404 (11,545) (6,536) - (477) (35,001) 90,745 44,821 8,500 5,101 610 59,032 54,583 (1,964) - - (1,964) - 44,821 6,536 5,101 610 57,068 54,583 33,276 - 5,101 133 22,067 145,328 86,192 - - - 213,178 67,850 $ 119,468 $ - $ 5,101 $ 133 $ 235,245 $ 213,178 -30- CITY OF OTSEGO, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1998 (With comparative total amounts as of December 31, 1997) ASSETS Cash and temporary investments Accrued interest receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Deferred revenue TOTAL LIABILITIES FUND BALANCE Reserved for debt service TOTAL LIABILITIES AND FUND BALANCE -31- G.O. G.O. Improvement G.O. Water and Bonds of Bonds Sewer Bonds 87 and 91 of 1996 of 1998 $ 166,468 $ 224,647 $ 252,535 3,477 3,863 - 7,527 3,578 - 50,708 330,784 - $ 228,180 $ 562,872 $ 252,535 $ 1,500 $ - $ - 58,235 334,179 - 59,735 334,179 - 168,445 228,693 252,535 $ 228,180 $ 562,872 $ 252,535 Totals 1998 1997 643,650 $ 410,082 7,340 3,883 11,105 16,251 381,492 495,447 $ 1,043,587 $ 925,663 $ 1,500 $ - 392,414 509,646 393,914 509,646 649,673 416,017 $ 1,043,587 $ 925,663 -32- CITY OF OTSEGO, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1998 (With comparative totals for the year ended December 31, 1997) G.O. G.O. Improvement G.O. Water and Bonds of Bonds Sewer Bonds REVENUE Property taxes Special assessments Interest on investments TOTAL REVENUE EXPENDITURES Debt service Principal Interest and fiscal charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES Bond proceeds EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND FINANCING OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 -33- 87 and 91 of 1996 of 1998 21,862 124,676 - 7,689 8,541 - 29,551 133,217 - 75,000 60,000 - 14,172 32,475 73,010 89,172 92,475 73,010 (59,621) 40,742 (73,010) (59,621) 40,742 252,535 228,066 187,951 - $ 168,445 $ 228,693 $ 252,535 Totals 1998 1997 $ _ $ 461 146,538 142,692 16,230 17,438 162,768 160,591 135,000 65,000 119,657 51,536 254,657 116,536 (91,889) 44,055 325,545 - 233,656 44,055 416,017 371,962 $ 649,673 $ 416,017 -34- CITY OF OTSEGO, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31, 1998 (With comparative totals for December 31, 1997) ASSETS Cash and temporary investments Accrued interest receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Deferred revenue TOTAL LIABILITIES Municipal MSA Project Island Building Construction 94-2 View $ 146,431 $ 17,470 $ - $ 55,053 3,237 723 - 11311 27,260 - - $ 149,668 $ 45,453 $ - $ 56,364 27,260 27,260 - FUND BALANCE Unreserved Undesignated 149,668 18,193 - 56,364 TOTAL LIABILITIES AND FUND BALANCE $ 149,668 $ 45,453 $ - $ 56,364 -35- Revolving Water and Watershed 1998 Odean Capital Sewer Project Project Improvements Construction $ 63,072 $ (57,015) $ 283,775 $ 3,597,707 1,401 - 2,640 36,795 Totals 1998 1997 $ 4,106,493 $ 430,615 46,107 4,225 2,037 - 2,037 - - 27,260 35,462 $ 64,473 $ (57,015) $ 288,452 $ 3,634,502 $ 4,181,897 $ 470,302 $ - $ 6,311 $ 14,109 $ 128,495 $ 148,915 $ 19,011 - 27,260 35,462 6,311 14,109 128,495 176,175 54,473 64,473 (63,326) 274,343 3,506,007 4,005,722 415,829 $ 64,473 $ (57,015) $ 288,452 $ 3,634,502 $ 4,181,897 $ 470,302 -36- CITY OF OTSEGO, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) YEAR ENDED DECEMBER 31, 1998 (With comparative totals for the year ended December 31, 1997) REVENUE Intergovernmental MSA construction proceeds Interest on investments Special assessments Miscellaneous TOTAL REVENUE EXPENDITURES Capital outlay Public works EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Bond proceeds Operating transfers out TOTAL OTHER FINANCING (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 7,157 (116,774) (11,361) (15,989) 142,511 134,967 11,361 72,353 $ 149,668 $ 18,193 $ - $ 56,364 Municipal MSA Project Island Building Construction 94-2 View 7,157 1,600 52 2,898 - 11,036 - - 7,157 12,636 52 2,898 4,603 166 18,887 7,157 8,033 (114) (15,989) (124,807) (11,247) - (124,807) (11,247) - FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 -37- Revolving Water and Watershed 1998 Odean Capital Sewer Project Project Improvements Construction Totals 1998 1997 $ - $ - $ - $ - $ - $ 22,705 3,097 - 5,951 75,968 96,723 19,670 - - 2,037 - 13,073 11,585 6,739 - - - 6,739 44,865 9,836 - 7,988 75,968 116,535 98,825 63,326 14,699 627,535 729,216 70,159 9,836 (63,326) (6,711) (551,567) (612,681) 28,666 281,054 - 281,054 - - 4,104,648 4,104,648 - - (47,074) (183,128) - 281,054 4,057,574 4,202,574 - 9,836 (63,326) 274,343 3,506,007 3,589,893 28,666 54,637 - - - 415,829 387,163 $ 64,473 $ (63,326) $ 274,343 $ 3,506,007 $ 4,005,722 $ 415,829 -38- CITY OF OTSEGO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) DECEMBER 31, 1998 Year 2000 ISSUE (UNAUDITED) The year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the government's operations as early as fiscal year 1999. The City has completed an inventory of computer systems and other electronic systems that may be affected by the year 2000 issue and that are necessary to conducting City operations. The City has assessed the areas that are critical to operations and is in the process of obtaining assurances from their vendors. Because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the City is or will be year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City does business will be year 2000 ready. -39- OTHER REPORTS CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 1998 II lOW-J lVM 1 LJ1 W LLP CertigW Mic Accountants & Consultants 7241 Ohms Cane Suite 200 Ntinneapolis, MN 55439 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDMNG STANDARDS Honorable Mayor and City Council City of Otsego, Minnesota We have audited the general purpose financial statements of the City of Otsego, Minnesota as of and for the year ended December 31, 1998 and have issued our report thereon dated May 20, 1999. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. In our report, our opinion was qualified because the General Fixed Assets Account Group was not audited. Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Utilities' ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements. Our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. A good internal control structure contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important, however, that you be aware of this reportable condition. -40- 612.835.9090 • Fax 612.8-35.3261 Page Two A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. We also noted other matters involving the internal control over financial reporting that we have reported to management of the City in a separate letter dated May 20, 1999. This report is intended for the information of the City Council, management and the Office of the State Auditor. However, this report is a matter of public record and its distribution is not limited. May 20, 1999 Minneapolis, Minnesota -41- Abd �, �bG1 D, �Ck.3 ('(�R,�XS, L(f ABDO, ABDO, EICK & MEYERS, LLP Certified Public Accountants CK & II V.41V1L 1 "I)J LLP Cenif i«i Public Accountants & Consultants 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 INDEPENDENT AUDITOR'S REPORT ON LEGAL COMPLIANCE Honorable Mayor and City Council City of Otsego, Minnesota We have audited the general purpose financial statements of the City of Otsego, Minnesota as of and for the year ended December 31, 1998, and have issued our report thereon dated May 20, 1999. In our report, our opinion was qualified because the General Fixed Assets Account Group was not audited. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and conditions of applicable legal provisions. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City Council, management and the Office of the State Auditor and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. May 20, 1999 Minneapolis, Minnesota -42- 612.835.9090 • Fax 612.835.3261 401 abjD JE4- Ck_� MW, LLP ABDO, ABDO, EICK & MEYERS, LLP Certified Public Accountants ki2 CITY OF OTSEGO REQUEST FOR COUNCEL ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: 5. CONSENT AGENDA Elaine Beatty, City Clerk/ June 23, 1999 (Non -Controversial Items) 6:30PM ITEM NUMBER: ITEM DESCRIPTION: 5.1. Approve Revised Resolution No. 99-28 per bond counsel request attached. 5.2. Approve Resolution calling for Bids on Odean Avenue NE Road Improvement Project. (Andy MacArthur will prepare) BACKGROUND: 5.1. Attached is a memo from bond counsel suggesting change in language for Resolution No. 99-28 and a revised Resolution 99-28 with language added by myself. I have had Andy review this and he agrees with it. 5.2. Andy MacArthur will get a copy of a Resolution calling for Bids on Odean Avenue NE Road Improvement Project to us to distribute. It will not be in your packet, but will be distributed later. (As the State actually did the bidding, the wording on this resolution is different from the usual bidding resolution.) RECOMMENDATION: This is for Council consideration and approval. If Council has any questions or need to discuss further, the item should be removed to another section of the Agenda. Thanks, Elaine CITY OF OTSEGO COUNTY OF WRIGHT RESOLUTION NO. 99-28 (REVISED 6/21/99) RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS FOR OTSEGO 1999 BITUMINOUS OVERLAY PROGRAM WHEREAS, a resolution of the City Council adopted the 8th day of February, 1999, fixed a date for a Council hearing on a bituminous overlay program including improvement of all existing roadways within the following described area: Halls 1 st, 2nd & 3rd Additions, Vasseur's Oak Grove Estates 1st, 2nd, 3rd & 4th Additions, Hidden Valley, Deer Field Acres and Walesch Estates 1st & 2nd Additions, which hearing was held on the 18th day of March, 1999, and; WHEREAS, a resolution of the City Council adopted the 12th day of April, 1999, fixed a date for a Council Heating on a bituminous overlay program including improvement of all existing roadways within the following described areas: Otsego Acres 1st and 2nd Additions, Great River Acres 1st, 2nd and 3rd Additions and Mason Avenue (CSAH 39 to 83RD ST. N.E.), (Marlowe Ave. N.E. to Mason Ave. N.E.) Marlow Ave. N.E. (83rd St. N.E. to 80th St. N.E.), 80th St. N.E. (Marlow Ave. N.E. to CSAH 19) of the City of Otsego, which hearing was held on the 4th day of May, 1999; and WHEREAS, the City Council may order construction of all or parts of the bituminous overlay program within the areas described above and desires preparation of plans and specifications on said improvement areas. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: It is advisable, expedient, and necessary that said improvement as described above be constructed and the same are hereby ordered and Hakanson Anderson Associates, Inc. is hereby designated as the engineer for the improvement. The engineer is hereby authorized and directed to prepare plans and specifications for such improvements within the two areas described herein. Adopted by the Otsego City Council this 14th day of June, 1999. The following Council Members voted for the motion: Mayor Larry Fournier, Council Members Mark Berning, Virginia Wendel and Suzanne Ackerman. Council Member Vern Heidner was absent. The following Council Members voted against the motion: No One Honorable Mayor Larry Fournier Elaine Beatty, City Clerk 06/18/99 FRI 08:20 FAX 6512241305 FROM : CITY OF OTSEGO ..,..... - __... 10 °U- PHONE NO. 612 441 4414 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.9 9-? e RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS FOR OTSEGO 1999 OrrUMINOUS OVERLAY PROGRAM WHEREAS, a resolution of the City CouruAl adopted the 8th day of February, 1999, fixed a date for a Council hearing on a bituminous overlay program including Improvement of all existing roadways within the followln described areas: Halls 1 at, 2"d & 3"I Additions, Vasseurs Oak Grove Estates 1"', 2"d 3'� & Ott► Additions, Hidden Valley Acres, Deerfield Acres and Walesch Estates 1'' & 2"d Additions, which hearing was held on the 18th day of March, 1999, and; WHEREAS, a resolution of the City Council adopted the 1201 day of April, 1999, fixed a date for a Council Hearing on a bituminous overlay program including improvement of all existing roadways within the following described areas: Otsego Acres 1s1 and 2' Additions, Great River Acres 19t, 2"d and 31d Additions, and Mason Ave. (CSAR 39 to 83'd St, N.E.), 83`d St. N.E. (Marlowe Ave. N.E. to Mason Ave. N.E.), Marlowe Ave. N.E. (831d St. N.E. to 801h St. N.E.), 801" St. KE. Marlowe Ave. N.E. to CSAH 19) of the City of Otsego, which hearing was held on the 4'day of May, 1999; and WHEREAS, the City Council may order construction of all or parts of the bituminous overlay program within the areas described above and desire$ preparation of pians and specifications on said Improvement areas. NOW THEREFORE, BE IT RESOi,VED BY THE COUNCIL OF THE CITY OF OTSEGO, MINNESOTA; Hakaneon Anderson Associates, inc. is hereby designated as the engineer for this improvement. The engineer is hereby authorized and directed to prepare pians and specifications for such improvements within the two arms described herein. ADOPTED by the Otsego City Council this 10 day of June, 1999, Honorabi ayo Larry Fournier eine Beatty, City Clerk 11Cln4iylnhareWlunitApal\AOT913GO1$37\ot337RF SORDPI.N3,doo 06/18/99 FRI 08:19 FAX 6512241305 Phone: 612-224-1500 Fax: 612-224-1305 and 612-224-1305 Fac To: Elaine Beatty, Cleric From: LORI A. GIAMPAOLO 291-3031 Fax: 1-612-441-8823 Date: June 18, 1999 Phone: 1-612-441-4414 Pages: 2 Re: Ordering Resolution CC: X Urgent ❑ For Review ❑ Please Comment ❑ Please Reply ❑ Please Recycle -Comments: Elaine, Bond Counsel has requested that some additional wording be added to the Ordering Resolution, under the Now Therefore statement and above the last paragraph, please insert " It is advisable, expedient, and necessary that said improvements as described above be constructed and the same are hereby ordered," Also, could you please denote the members last name and how they voted. We need to show the 415ths voting approval related to this resolution. Please call if you have questions. Thank you for your assistance. ��w Q0U_ 22 CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: DEPART-MENT: - IEETLNG DATE: DEPARTtiIENT: PREPARED BY: 6. Dan Licht, Assistant City Planner: Elaine Beatty, City Clerk;` June 23, 1999 6:30PM ITEM NUMBER: ITEM DESCRIPTION: 6.1. AiRDlieant Chris Bulow, Bulow, Inc. P.O. Box 506, Elk River, MN for owners Donald and Phyllis Greninger 9383 Kadler Ave. NE, Otsego,14N PID 4118-800-142402 in Section 14, Township 121, Range 24. Property is NE of Co. Rd. #39 and Kadler Ave NE and is approximately 82.46 acres total Request is as follows: A- Rezone from A-1, General Agricultural to R -C, Residential Open Space Cluster District B. Concurrent Concept/Development Stage PUD -CUP to allow a privately owned commercial recreational use as required open space and establishment of proposed staggered setbacks for residential lots in an R -C District C. Preliminary Plat 6.2. Applicantlowner Dennis A Backes, Backes Companies, Inc. 7026 Brooklyn Boulevard, Brooklyn Center, NN 55429. The property is the former 120 acre Fabian Sadowski farm located S. of 85TH ST and NE of Page Ave. NE and Packard Ave NE. PID#'s 118-500-223200 and 118-500-272200 in Section 22, Twp. 121, R23 and Sec. 27, Twp 121, R23, Otsego, MN. All the property is zoned A-1, General Agricultural. Request is as follows: A. Rezone from A-1, General Agricultural Rural Service District to R-4, Residential - Urban Single Family District. (Note: P.C. voted to recommend approval of R-4 Rezoning on 5/17/99) B. Subdivision C. Preliminary Plat of "Crimson Ponds". 6.3. Any other Planning Business. BACKGROUND: 6.1. Was formerly before the P.C. on two occasions and was continued to allow the applicant to gather further information. A Continued Hearing was held on June 21, 1999 at 8PM (Monday) P.C. Meeting. after review by City planner and engineer and much discussion by applicant, residents and P.C. in the continued Hearing, the Hearing was closed and the following motions were made: GENE GOENNER MOTIONED TO REZONE FROM A-1 TO R -C DISTRICT. JIM KOLLES SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. MOTION BY EUGENE GOENNER TO DENY THE CUP/PUD CONCEPT PLAN BASED ON THE COMPREHENSIVE PLAIN USE FOR THE R -C DISTRICT. CHRISTIAN MBANEFO SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY TO RECOMMEND DENIAL TO THE COUNCIL. Page'_ - Planning Items No. 6 (Cont.) CHRISTI- N4 MB ANEFO MOTIONED TO RESCIND THE REZONING MOTION FROM A-1 TO R -C. There was a question if this was a legal motion. CHRISTIAN MBANEFO CHANGED THE MOTION AS FOLLOW: CHRISTLA_; MBANEFO MOTIONED TO RE -CONSIDER THE PREVIOUS REZONING MOTION FROM A-1 TO R -C. GENE GOENNER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. GENE GOENNT ER MOTIONED TO DENY REZONrNG FROM A-1 TO R -C DISTRICT. PATRICK MOONEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. MOTE: Some of the reasons for motion to deny were stated by the P.C. General consensus was they liked the idea of the golf course, but not the housing lined up on the streets all in a row and it does not meet the uniqueness and intent of the R -C District zoning. 6.2. Applicant was at the P.C. previously with Crimson Ponds proposed development plans. the rezoning to the property was approved on May 17, 1999 P.C. Meeting at 8PM. They are now asking for Subdivision and Preliminary Plat approval of Crimson Ponds. This item came before the P.C. for Hearing on June 21, 1999. Dan Licht gave the Planning Report and Larry Koshak gave the Engineering Report. Jeremy Boots from Loucks Engineering spoke, Some resident spoke and P.C. Discussed the issues. The following motion was made: GENE GOENNER MOTIONED TO APPROVE THE PRELIMINARY PLAT OF CRIMSON PONDS SUBJECT TO CONDITIONS IN NAC'S REPORT A - J AND THE RECOMMENDATION TO START THE PROJECT ON THE SOUTH END OF THE PROPERTY. ARLEEN NAGEL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. See attached information and Findings of Fact. 6.3. This is for any other P.C. Business that should arise. None RECON, iENDATION: These are for Council consideration for approval. The P.C. has recommended denial of the Grenings Mississippi Hills preliminary plat rezoning and approval of Crimson Ponds Preliminary Plat with the conditions as written by NAC. Thanks, Elaine JUN -22-1999 11:05 NAC 612 595 9937 P.02 NORTHWEST ASSOCIATED CONSULTANTS d%% NW ING k Moo#COMMUNITY PLANNING - DESIGN - MARKET RESEARCH MEMORANDUM TO: Otsego Mayor and City Council FROM: Daniel Licht DATE: 22 June 1999 RE: Otsego - Grenins Mississippi Hills; Planning Commission Recommendation FILE NO.: 176.02 - 99.04 The Planning Commission, at their meeting on June 21, 1999, voted unanimously 6-0 to recommend that the City Council deny the application for rezoning from A-1 District to R -C District for the above referenced project based upon the project being inconsistent with the purpose of the R -C. District and intent of the Comprehensive Plan. The Planning Commission further voted 6-0 to recommend that the preliminary plat and PUD -CUP applications be denied. The Planning Commission indicated that the development of the subject parcel with a golf course would be highly positive. However, their strong objection to the proposed development is that the configuration of the lots does not provide the physical integration or creative subdivision design required in the R -C District. In this regard, the density bonuses requested to allow development of the proposed 20 single family units opposed to the eight which vvwuld be allowed under the standard 4 per 40 density are not justified. It was the Planning Commission's direction from their meeting on May 17, 1999 that the project should provide a more creative subdivision design or that the number of residential lots should be reduced. In reviewing the application and considering the recommendation of the Planning Commission, the City Council may take the following actions. Please note, option B reflects the recommendation of the Planning Commission. Findings of fact and a Zoning Ordinance amendment have been included both for approval or denial of the application. 5775 WAYZATA BOULEVARD. SUITE 555 ST. LOUIS PARK, MINNESOTA 5541 6 PHONE 61 2-595-9636 FAX 61 2-595-9837 E-MAIL NAC Ct WINTERNET.COM JUN -22-1999 11:05 NAC 612 595 se37 P.03 A. Approval (each approval should be made as a separate motion): Motion to approve a Zoning Ordinance Amendment rezoning the subject property from A-1 District to R -C District. 2. Motion to approve a preliminary plat t concept planJdevelopment stage PUD -CUP for Lots 1-12, Block 1, Lots 1-8, Block 2 and Outlot A I concept plan PUD -CUP for Outlot B for Grenins Mississippi Hills, subject to the following conditions: a. Not more than eight (8) building permits shall be issued within the PUD prior to completion of the golf course and related facilities. b. The City Engineer determine whether the Outlot A exceeds 50 percent of the existing net buildable area of the parcel. C. The applicant provide specific information regarding the rights and privileges of the golf course charter members, which shall be recorded as part of the development contract, subject to review of the Planning Commission and approval of the City Council. d. The east cart easement is revised to parallel the rear lot lines of Lots 1-8, Block 2. e. Lots 1-12, Block 1 and Lots 1-8, Block 2 shall be at least one (1) net acre in size, subject to review and approval of the City Engineer_ f. A landscape plan is submitted for development of Outlot A, subject to review by the Planning Commission and City Council. g. The concept plan for Outlot B is revised such that all buildings comply with applicable setback requirements of the R -C District. h. The applicant improve Kadler Avenue from CSAH 39 to the north plat line, subject to review and approval of the City Engineer. Traffic impacts at intersections or access points with CSAH 39 are subject to review and approval of Wright County Highway Department and City Engineer. Plans for a parking area with a minimum 72 stalls shall constructed of asphalt surfacing with concrete curb shall be required prior to the golf course opening for business. 2 JUN -22-1799 11:06 NAC 612 595 9037 P.04 k. The applicant satisfy park dedication requirements at the time of final plat approval. All grading, drainage and utility plans shall be subject to review an approval of the City Engineer. M The applicant enter into a development contract with the City and post all required securities, subject to review and approval of the City Attomey. n. The Section 20-77-5 of the Zoning Ordinance is amended to accommodate bed and breakfast uses as a conditional use. o Detailed site, utility, landscaping and building plans for the golf course, club house and bed and breakfast are submitted as part of a General Plan of Development Application. P- Comments of other City Staff. B. Motion to deny the requested rezoning based upon a finding that the proposed use is inconsistent with the Comprehensive Plan and purpose of the R -C District. C. Motion to table the applications (specific direction should be provided to the applicant on necessary revisions to the Concept Plan before subsequent review/action is taken). D. Motion to refer the Rezoning/Preliminary Plat/PUD-CUP applications to the Planning Commission for further consideration. PC. Mike Robertson Elaine Beatty Andy MacArthur Larry Koshak Chris Bulow JUN -22-1999 11:07 NAC CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA Applicant's Name: Bulow incorporated 612 595 9837 P.05 Zoning Amend ment(approve) Findings of Fact & Decision Request: Request for approval of a Zoning Ordinance amendment (map) to rezone the property legally described by Exhibit A (`the property") from A-1, Agricultural - Rural Service Area to R -C, Residential - Rural Open Space Cluster District. City Council Meeting Date: 23 June 1999 Findings of Fact: Based upon review of the application, the recommendation of the Planning Commission and evidence received, the City Council of the City of Otsego now makes the following findings of fact: 1. The legal description of the property is: See attached EXHIBIT A. 3. The property lies within the Rural Residential Preserve as identified in the 1998 Comprehensive Plan Update. 4. The property is zoned A-1, Agricultural - Rural Service Area. 5. Section 20-3-2.F of the Zoning Ordinance directs the Planning Commission and City Council to consider the possible adverse effects of the proposed amendment, with their judgement based upon (but not limited to) the following factors: A. The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Plan. Finding: The proposed rezoning is consistent with the Comprehensive Plan in that it satisfies the following objectives of the R -C District, which was established to implement the policies for development in this area of the community: 20-77-1.B Creation of cohesive neighborhoods in order to establish local identity and community interaction. 20-77-1. C. Physical integration of neighborhoods, open spaces, and places of destination in order to establish municipal identity and community interaction. 20-77-1-E Creative application of this section is encouraged while preserving its purpose and intent. JUN -22-1999 11:07 NAC 612 595 9637 P.06 B. The proposed use's compatibility with present and future land uses of the area. Finding: The Zoning Ordinance amendment will allow development of a project compatible with present and future land uses as a transitional land use. C. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Finding: The proposed use conforms with the applicable performance standards of the City's Zoning and Subdivision Ordinance. D. The proposed use's effect upon the area in which it is proposed. Finding: The proposed use will not have a negative impact on the area in which it is proposed. E. The proposed use's impact upon property values of the area in which it is proposed. Finding: Although no study has been completed, the proposed use is not anticipated to negatively impact area property values. F. Traffic generation by the proposed use in relation to the capabilities of streets serving the property. Finding: The proposed use will be adequately served by existing public streets. G. The proposed use's impact upon existing public services and facilities including parks, schools, streets, and utilities and its potential to overburden the City's service capacity_ Finding: The proposed use will not have a negative impact to the City's service capacity. 6. The planning reports dated 12 May 1999 and dated 15 June 1999 prepared by Northwest Associated Consultants, Inc. are incorporated herein. 7. The reports dated 3 May 1999 and 16 June 1999 prepared by the City Engineer Hakanson Anderson Associates, Inc. are incorporated herein. 8. The Otsego Planning Commission conducted a public hearing, at their regular meeting on 17 May 1999 and continued to their meeting on 21 June 1999, to consider the proposed conditional use permit, preceded by published and mailed notice. Upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 6-0 vote that the City Council deny the Zoning Ordinance amendment as the proposed use is inconsistent with the objectives of the R -C District. 2 JUN -22-1999 11:08 NAC 612 595 9837 P.07 Decision: Based on the foregoing information and applicable ordinances, the requested Zoning Ordinance amendment is hereby approved based on the most current plan and information received to date. PASSED by the Otsego City Council this 23th Day of June, 1999 CITY OF OTSEGO M Larry Foumier, Mayor Attest: Elaine Beatty, Zoning Administrator/City Clerk JUN -22-1999 11:08 NAC 612 595 9837 P.08 ORDINANCE NO.: CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO PROVIDE FOR A CHANGE IN ZONING CLASSIFICATION FOR PROPERTY INCLUDED AS PART OF THE GRENINS MISSISSIPPI HILLS PRELIMINARY PLAT. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. The official Zoning Map of the Otsego Zoning Ordinance is hereby amended to change the zoning classification of the following described property (the property"). See attached EXHIBIT A Section 2. The property is hereby rezoned from an A-1, Agricultural -Rural Service District designation to an R -C, Residential -Rural Open Space Cluster District designation. Section 3. The Zoning Administrator is hereby directed to make appropriate changes to the official Zoning Map of the City of Otsego to reflect the change in zoning classification set forth above. Section 4. This Ordinance shall become effective immediately upon its passage and publication. PASSED by the Otsego City Council this 23rd day of June 1999. CITY OF OTSEGO BY: Larry Fournier, Mayor ATTEST: Elaine Beatty, Zoning Administrator/City Clerk JUN -?21-1999 11 09 NAC CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA Applicant's Name: Bulow Incorporated 612 595 9837 P.09 PUD -CUP& Preliminary Plat Findings of Fact & Decision Request: Request for approval of a preliminary plat application entitled "Grenins Mississippi Hills", described by Exhibit A ("the property"), consisting of 20 single family lots and two outlots associated with a privately owned golf course. The applicant is requesting concurrent concept plan/development stage Planned Unit Development -Conditional Use Permit approval to allow Outlot A, the privately owned recreational use, as required open space within the R -C District and establishment of varied front yard setbacks as indicated on the preliminary plat. The applicant is also requesting concept plan PUD -CUP approval for Outlot B consisting of proposed golf club house and a bed and breakfast inn use City Council Meeting Date: 23 June 1999 Findings of Fact: Based upon review of the application, the recommendation of the Planning Commission and evidence received, the City Council of the City of Otsego now makes the following findings of fact: 1. The legal description of the property is: See attached EXHIBIT A. 3. The property lies within the Rural Residential Preserve Area as identified in the 1998 Comprehensive Pian Update. 4. The property is guided for rural residential development by the 1998 Comprehensive Plan Update and is zoned R -C, Residential -Rural Open Space Cluster District. 5. The Grenins Mississippi Hills Preliminary Plat consists of twenty (20) single family residential lots and two outlots to be developed as a privately owned golf course (commercial recreation) use. 6. Commercial recreation is a conditional use in the R -C District, subject to the following conditions: A. The principal use, function or activity is open and outdoor in nature. B. Not more than 5 percent of the land area up to a maximum 4,000 square feet of the site shall be covered by buildings or structures. JUN -22-1999 11:10 NAC 612 595 9637 P.10 C. The use will not negatively impact abutting or neighboring existing or potential residential uses. D. When abutting a residential use or a residential use district, the property is screened and landscaped in compliance with Section 16 of [the Zoning Ordinance]. E. The traffic generated by the use can be adequately accommodated (both volume and weight) upon the City streets serving the property on which the use is located. 7. Section 20-4-2.17 of the Zoning Ordinance directs the Planning Commission and City Council to consider the possible adverse impacts of the proposed amendment and conditional uses, with judgement based upon (but not limited to) the following factors: A. The proposed action's consistency with the spec policies and provisions of the official City Comprehensive Plan. Finding: Development of the golf course use is consistent with the intent of neighborhood recreation encouraged by the R -C District, which was established to implement the directives of the Comprehensive Plan with regard to the Rural Residential Preserve area. The golf course use satisfies the following specific objectives of the R -C District. 20-77-1. B Creation of cohesive neighborhood in order to establish local identity and community interaction. 20-77-1. C. Physical integration of neighborhoods, open spaces, and places of destination in order to establish municipal identity and community interaction. 20-77-1.E Creative application of this section is encouraged while preserving its purpose and intent. B_ The proposed use's compatibility with present and future land uses of the area. Finding_ Through proper design, the golf course will be compatible with present and future land uses of the area. C. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Finding: The proposed use conforms with all applicable performance standards of the City's Zoning Ordinance with satisfaction of the conditions of approval. D. The proposed use's effect upon the area in which it is proposed. Finding: The proposed use will not have a negative impact to the area in which it is proposed as a transitional land use. 2 JUN -22-1999 11:10 NAC 612 595 9837 P.1i E. The proposed use's impact upon property values of the area in which it is proposed. Finding. Although no specific study has been completed, the proposed use is not anticipated to negatively impact area property values. F. Traffic generation by the proposed use in relation to the capabilities of streets serving the property. Finding: The proposed use will be adequately served by existing streets serving the property. G. The proposed use's impact upon existing public services and facilities including parks, schools, streets, and utilities and its potential to overburden the City's service capacity. Finding: The proposed use will not negatively impact the City's service capacity. a. The planning report dated 12 May 1999 and memorandum dated 16 June 1999 prepared by Northwest Associated Consultants, Inc_ are incorporated herein. 9_ The reports dated 12 May 1999 and 16 June 1999 prepared by the City Engineer Hakanson Anderson Associates, Inc. are incorporated herein. 10. The Otsego Planning Commission conducted a public hearing, at their regular meeting on 17 May 1999 and continued to their meeting on 21 June 1999, to consider the proposed conditional use permit, preceded by published and mailed notice. Upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 6-0 vote that the City Council deny the PUD -CUP and preliminary plat applications following a 6-0 vote to recommend denial of the necessary rezoning to R -C District because the project is inconsistent with the objectives of said District.. Decision: Based on the foregoing information and applicable ordinances, the Preliminary Plat of Grenins Mississippi Hills, concurrent concept plan/development stage PUD -CUP for Lots 1-12, Block 1, Lots 1-8, Block 2 and Outlot A, and concept plan PUD -CUP for Outlot B are hereby approved based on the most current plan and information received to date, subject to the following conditions: Not more than eight (8) building permits shall be issued within the PUD prior to completion of the golf course and related facilities. 2. The City Engineer determine whether the Outlot A exceeds 50 percent of the existing net buildable area of the parcel. 3. The applicant provide specific information regarding the rights and privileges of the golf course charter members, which shall be recorded as part of the development contract, subject to review of the Planning Commission and approval of the City Council. 3 JUN -22-1999 11:11 NAC 612 595 9837 P.12 4. The east cart easement is revised to parallel the rear lot lines of Lots 1-8, Block 2. 5. Lots 1-12, Block 1 and Lots 1-8, Block 2 shall be at least one (1) net acre in size, subject to review and approval of the City Engineer. 6 A landscape plan is submitted for development of Outlot A, subject to review by the Planning Commission and City Council. 7 The concept plan for Outlot B is revised such that all buildings comply with applicable setback requirements of the R -C District. 8. The applicant improve Kadler Avenue from CSAR 39 to the north plat line, subject to review and approval of the City Engineer. 9. Traffic impacts at intersections or access points with CSAH 39 are subject to review and approval of Wright County Highway Department and City Engineer. 10 Plans for a parking area with a minimum 72 stalls shall constructed of asphalt surfacing with concrete curb shall be required prior to the golf course opening for business. 11 The applicant satisfy park dedication requirements at the time of final plat approval. 12. All grading, drainage and utility plans shall be subject to review an approval of the City Engineer. 13 The applicant enter into a development contract with the City and post all required securities, subject to review and approval of the City Attorney. 14 The Section 20-77-5 of the Zoning Ordinance is amended to accommodate bed and breakfast uses as a conditional use. 15 Detailed site, utility, landscaping and building plans for the golf course, club house and bed and breakfast are submitted as part of a General Plan of Development Application. 16 Comments of other City Staff. PASSED by the Otsego City Council this 23rd day of June, 1999 CITY OF OTSEGO By: Larry Fournier, Mayor Attest: Elaine Beatty, Zoning Administrator/City Clerk 4 JUN -22-1999 11:12 NAC CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA Applicant's Name:-uiow Incorgo-ated 612 595 9337 P.13 Zoning Amendment(denial) Findings of Fact & Decision Request: Request for approval of a Zoning Ordinance amendment (map) to rezone the property legally described by Exhibit A ("the property") from A-1, Agricultural - Rural Service Area to R -C, Residential - Rural Open Space Cluster District. City Council Meeting Date: 23 .lune 1999 Findings of Fact: Based upon review of the application, the recommendation of the Planning Commission and evidence received, the City Council of the City of Otsego now makes the following findings of fact: The legal description of the property is: See attached EXHIBIT A- 2. The property lies within the Rural Residential Preserve as identified in the 1998 Comprehensive Plan Update. 3_ The property is zoned A-1, Agricultural - Rural Service Area. 4. Section 20-3-2.F of the Zoning Ordinance directs the Planning Commission and City Council to consider the possible adverse effects of the proposed amendment, with their judgement based upon (but not limited to) the following factors: A. The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Plan. Finding: The proposed Zoning Ordinance amendment is inconsistent with the Comprehensive Plan in that the development does meet the objectives of the R -C District, which was established to specifically implement development strategies outlined for the Rural Residential Preserve Area. The proposed rezoning is specifically inconsistent with the following objectives of the R -C District: 20-77-1_B Creation of cohesive neighborhood in order to establish local identity and community interaction. 20-77-I.C. Physical integration of neighborhoods, open spaces, and places of destination in order to establish municipal identity and community interaction. JUN -22-1999 11:12 NAC 612 595 9837 P.14 5_ C 20-77-1. E Creative application of this section is encouraged while preserving its purpose and intent_ B_ The proposed use's compatibility with present and future land uses of the area. Finding: The proposed rezoning is incompatible with present and future land uses of the area because of traffic generated in relation to capacity of streets serving the property due to the density of the proposed development. C. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Finding: The proposed use does not conform with the criteria for rural open space cluster development established by the R -C District for residential units and open space in terms of integrated subdivision design and accessibility. D. The proposed use's effect upon the area in which it is proposed. Finding: The proposed rezoning would negatively impact the area in which it is proposed by generating traffic beyond the capabilities of the streets serving the property. E. The proposed use's impact upon property values of the area in which it is proposed. Finding: Although no study has been completed, the proposed use is not anticipated to negatively impact area property values. F. Traffic generation by the proposed use in relation to the capabilities of streets serving the property. Finding: The preliminary plat is not adequately served by public streets and will negatively impact an existing traffic condition at the intersection of CSAH 39 / Kadler Avenue. G. The proposed use's impact upon existing public services and facilities including parks, schools, streets, and utilities and its potential to overburden the City's service capacity. Finding: The preliminary plat will have a negative impact to the City's service capacity with regards to streets serving the property. The planning reports dated 12 May 1999 and dated 15 June 1999 prepared by Northwest Associated Consultants, Inc. are incorporated herein. The reports dated 3 May 1999 and 16 June 1999 prepared by the City Engineer Hakanson Anderson Associates, Inc_ are incorporated herein. 2 JUN -22-1999 11:13 NAC 612 595 9837 P.15 7. The Otsego Planning Commission conducted a public hearing, at their regular meeting on 17 May 1999 and continued to their meeting on 21 June 1999, to consider the proposed conditional use permit, preceded by published and mailed notice. Upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 6-0 vote that the City Council deny the Zoning Ordinance amendment based on the aforementioned findings. Decision: Based on the foregoing information and applicable ordinances, the requested Zoning Ordinance amendment is hereby denied based on the most current plan and information received to date. PASSED by the Otsego City Council this 23th Day of June, 1999 Attest: CITY OF OTSEGO By: Larry Fournier, Mayor Elaine Beatty, Zoning Administrator/City Clerk 3 TOTAL P.15 NORTHWEST ASSOCIATED CONSULTANTS IN C COMMUNITY PLANNING - DESIGN - MARKET RESEARCH PLANNING REPORT -addendum TO: Otsego Mayor and City Council Otsego Planning Commission FROM: Daniel Licht DATE: 15 June 1999 RE: Otsego - Grenins Mississippi Hills; Rezoning/PUD-CUP FILE NO.: 176.02 - 99.04 EXECUTIVE SUMMARY Background Bulow, Inc. is proposing a residential rural open space cluster development including 20 single family lots, a commercial golf course and bed and breakfast use north of CSAH 39 between Kahler and Kadler Avenues. The 82.5 acre parcel is located within the Rural Residential Preserve designated by the Comprehensive Plan and is zoned A-1, Agricultural Rural Service District. Development of the project requires rezoning to R -C, Residential - Rural Open Space Cluster District, a PUD -CUP to allow a privately owned commercial recreational use (golf course) as required open space under the R -C District and preliminary plat approval. Concept plan approval is only being requested, however, for the club house and proposed bed and breakfast use as recommended by staff because of a lack detailed of information. The Planning Commission opened a public hearing on the request at their meeting of May 17, 1999. The applications were tabled at that meeting to allow the applicant to submit additional required information and details regarding aspects of the project. Also, the Planning Commission directed that the applicant consider design alternatives for the proposed subdivision. Staff held a meeting with the applicant on May 20, 1999 to discuss the need for substantially more detailed application materials that are expected for all development stage applications, as well as specific project issues. Following this meeting, the applicant has submitted revised plans and a project description. These revised plans are reviewed herein as a supplement to the original Planning Report of May 12, 1999. 5775 WAYZATA BOULEVARD, SUITE 555 ST. LOUIS PARK, MINNESOTA 554 1 6 PHONE 61 2-595-9636 FAX 612-595-9837 E-MAIL NAC@)WINTERNET COM Attached for Reference: Exhibit A: Site Location Exhibit B: PUD Narrative (revised) Exhibit C: PUD / Preliminary Plat (revised) Exhibit D: Grading Plan (revised) Recommendation Decisions regarding the application of Zoning and appropriate land use are a policy matter that must be determined by City Officials. Based upon the factors outlined herein, including the Comprehensive Plan and Zoning Ordinance, City Officials must determine if the overall design of the project and proposed open space amenities qualifies for the maximum density bonuses allowed through the R -C District. The principal reservation with the requested rezoning is that this development could be accomplished under the basic provisions of the A-2 District, except for the proposed 10 per 40 density. Beyond the broader zoning question, there are issues regarding the specific project design pertaining to traffic impacts and access, as well as details that have not been fully described such as landscaping, trail and street improvements, and specifics regarding resident's privileges. Until these issues are resolved, approval of the PUD -CUP and preliminary plat may be premature. The Planning Commission and City Council have the following options for action on this request: A. Approval (each approval should be made as a separate motion): Motion to approve a rezoning of the subject property from A-1 District to R-4 District PUD -CUP concept plan of Grenins Mississippi Hills. 2. Motion to approve a concept plan/development stage PUD -CUP and preliminary plat for Grenins Mississippi Hills, except for Outlot B, to allow a privately owned commercial recreation use as required open space and establish front yard setbacks, subject to the following conditions: a. Not more than eight (8) building permits shall be issued within the PUD prior to completion of the golf course and related facilities. b. The City Engineer determine whether the Outlot A exceeds 50 percent of the existing net buildable area of the parcel. Planning Report - Grenins Mississippi Hills Page 2 C. The applicant provide specific information regarding the rights and privileges of the golf course charter members, which shall be recorded as part of the development contract, subject to review of the Planning Commission and approval of the City Council. d. The east cart easement is revised to parallel the rear lot lines of Lots 1-8, Block 2. e. Lots 1-12, Block 1 and Lots 1-8, Block 2 shall be at least one (1) net acre in size, subject to review and approval of the City Engineer. f. A landscape plan is submitted for development of Outlot A, subject to review by the Planning Commission and City Council. g. The concept plan for Outlot B is revised such that all buildings comply with applicable setback requirements of the R -C District. h. The applicant improve Kadler Avenue from CSAH 39 to the north plat line, subject to review and approval of the City Engineer. Traffic impacts at intersections or access points with CSAH 39 are subject to review and approval of Wright County Highway Department and City Engineer. j. Plans for a parking area with a minimum 72 stalls shall constructed of asphalt surfacing with concrete curb shall be required prior to the golf course opening for business. k The applicant satisfy park dedication requirements at the time of final plat approval. All grading, drainage and utility plans shall be subject to review an approval of the City Engineer. m. The applicant enter into a development contract with the City and post all required securities, subject to review and approval of the City Attorney. n. Comments of other City Staff. 3. Motion to approve a concept plan PUD -CUP for Outlot B of Grenins Mississippi Hills for development of a golf course club house facility and bed and breakfast use, subject to the following conditions: Planning Report- Grenins Mississippi Hills Page 3 a. The Section 20-77-5 of the Zoning Ordinance is amended to accommodate bed and breakfast uses as a conditional use. b. Detailed site, utility, landscaping and building plans for the golf course, club house and bed and breakfast are submitted as part of a General Plan of Development Application. B. Motion to deny the PUD -CUP concept plan of Grenins Mississippi Hills based upon a finding that the proposed use is inconsistent with the Comprehensive Plan and purpose of the R -C District. C. Motion to table the PUD -CUP concept plan of Grenins Mississippi Hills (Specific direction should be provided to the applicant on necessary revisions to the Concept Plan before subsequent review/action is taken). ISSUES ANALYSIS Zoning. Development of the proposed project requires rezoning from A-1 to R -C District. The Planning Commission and City Council must evaluate whether the proposed project meets the broader intent of a cluster development anticipated by the Comprehensive Plan and purpose of the R -C District, versus whether the proposed use simply meets the performance criteria. Consideration of a PUD -CUP is also required to accommodate the proposed privately owned golf course as satisfaction for open space requirements within the R -C District and to establish the proposed staggered front yard setbacks. Sections 20-3-21 and 20-4-2.F of the Zoning Ordinance require the Planning Commission and City Council to consider the possible adverse impacts of the proposed amendment and conditional uses with judgement based upon (but not limited to) the following factors: The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Plan. 2. The proposed use's compatibility with present and future land uses of the area. 3. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). 4. The proposed use's effect upon the area in which it is proposed. 5. The proposed use's impact upon property values of the area in which it is proposed. 6. Traffic generation by the proposed use in relation to the capabilities of streets serving the property. Planning Report - Grenins Mississippi Hills Page 4 7. The proposed use's impact upon existing public services and facilities including parks, schools, streets, and utilities and its potential to overburden the City's service capacity. Comprehensive Plan. The subject property lies within the Rural Residential Preserve designated by the Comprehensive Plan. The purpose of this area is to protect the rural character and innate natural amenities through imposition of four per forty residential densities. The Comprehensive Plan does provide an opportunity for to increase the residential density to as much as 10 per 40 for cluster developments. This density increase is to be considered a "bonus" approved by the City Council as an incentive to encourage innovative and creative developments within objectives of the R -C District. As a matter of policy, the Planning Commission and City Council must make a determination if the proposed concept is consistent with desired development patterns encouraged by the R -C District and therefore the Comprehensive Plan. Compatibility. The surrounding land uses consist of suburban one acre or larger subdivisions to the north and east. Uses to the west consist of agricultural land and rural division residential uses. To the south, across CSAH 39, are large agricultural tracts. The proposed rezoning and PUD -CUP golf course may be considered appropriate as a rural transition given the suburban uses to the north and east. Although the golf course is not rural open space, it provides a scenic transition between the suburban development and rural areas to the south and west. The proposed development may be considered compatible with these uses from a land use perspective. Open Space. Section 20-77-7 of the Zoning Ordinance outlines performance standards for required open space. These requirements are discussed in the following paragraphs: Platting. The preliminary plat has been revised to designate the actual golf course as Outlot A, as required. This designation will allow for private ownership, while precluding and building construction or further development. The concept plan for the club house and bed and breakfast use has been designated as Outlot B. Outlot B would be platted as a buildable lot at such time as the applicant requests development stage PUD approval for the club house and/or bed and breakfast. • Area. A minimum 50 percent of the net buildable area of the parcel must be preserved as natural habitat, pedestrian corridors and/or neighborhood recreation. The definition of neighborhood recreation within the R -C District leaves open the possibility of a use such as a golf course. Based upon the submitted plat, approximately 72 percent of the gross area is designated as golf course. The City Engineer will need to evaluate whether the open space exceeds 50 percent of the existing net buildable area of the parcel. Planning Report - Grenins Mississippi Hills Page 5 • Location. Required open space is to be developed in consideration of providing a combination of view sheds, natural habitat, pedestrian corridors and neighborhood recreation that is integrated with the residential elements of the project. The applicant has not revised the basic subdivision design. As before, Lots 1-12, Block 1 are provided in a row will direct access to Kadler Avenue. Lots 1-8, Block 2 will be provided in a row along the east plat line with direct access off of Kalher Avenue. The golf course is situated in between the rows of lots, with the club house/ bed and breakfast facilities located in the southeast corner of the plat. The applicant has said that alternative subdivision designs were considered, but that the submitted layout was the only option that would accommodate a golf course and 20 residential lots. A primary concern expressed by the Planning Commission on May 17, 1999 was that the entire parcel is divided between privately owned lots and privately owned commercial uses. Further, the Planning Commission was concerned that design of the subdivision does not provide any integration of open space and the clustered residential lots. The members of the Planning Commission stated that these factors combine to make development of this project more appropriate under the provisions of the A-2 District with a basic 4 per 40 density. The proposed preliminary plat does provide view sheds of the golf course from the residential lots and will provide a large contiguous area of green space. To address concerns about access to the open space, the applicant has clarified that residents of Lots 1-12, Block 1 and Lots 1-8, Block 2 would be entitled to "special privileges" at the golf course including special pricing and preferred tee times, as described in the project narrative. More specific information regarding the rights and privileges of the charter members should be provided, including any documentation that will be recorded as part of the development contract. To provide more convenient access to the golf course, the applicant is proposing pedestrian/cart easements along the east lot lines of Lots 1-12, Block 1 and on the south lot line of Lot 8, Block 2. The application materials are not specific as to the construction material for the trails, although they are to be maintained as part of the golf course. The cart easement for lots 1-12, Block 1 should provide a direct trail connection to the clubhouse area. However, no trail locations within the golf course are indicated. The east cart easement may encourage use of golf carts on the public street. To address this concern, the easement should be revised to parallel the rear lot lines of Lots 1-8 Block 2. Neighborhood Performance Standards. The proposed concept plan includes two clusters of residential lots. Section 20-77-8 of the Zoning Ordinance outlines performance standards applicable to this element of the project: Planning Report - Grenins Mississippi Hills Page 6 • Configuration. Each cluster of residential lots is required to have at least five lots or 25 percent of the total lots within the project. Further, the residential lots are to be oriented towards a view shed, physical amenity or unique street scape. As discussed previously, each proposed lot will have a view of the golf course. There is a concern however, that the viewshed from some lots may be partially blocked by the adjacent unit due to the proposed staggered front setback. This is most likely to be an issue in the area of Lots 7-12, Block 1. • Lot Standards. The minimum lot area of the R -C District is one net acre. The proposed lots all have a gross area of one acre. Again, the City Engineer will need to evaluate the lot design to ensure that the lot area is also one net acre. The minimum lot width and depth required in the R -C District is 100 feet and 150 feet respectively. All of the proposed lots conform with these requirement. • Setbacks. The R -C District requires minimum front yard setback of 35 feet from local streets. As part of the PUD -CUP the concept plan includes a staggered front yard setback. The applicant is proposing that a the front yard setbacks of the residential lots be staggered to provide varied building pad locations and elevations, taking advantage of the existing natural terrain. The applicant was advised by staff to provide a cross section more fully illustrating the effect of the staggered setbacks/elevations. No such information has been provided. Based upon the submitted grading plan, the front setbacks of the eastern residential lots vary from 30 feet to 150 feet. The change in elevation between building pads is at most 2 feet. The west row of lots vary in setback distance between 100 and 260 feet. The topography along the west edge of the plat is more rolling than on the east, creating variations with a change of up to 25 feet across the lots. Although the concept plan for Outlot B lacks sufficient detail for any substantive evaluation, the proposed clubhouse building encroaches into required setbacks. As such, the concept plan must be revised such that all structures conform with the required setbacks in the R -C District. A final setback issue is the required 30 foot side yard setbacks. When combined with the minimum 100 foot lot width, the building envelope is only 40 feet wide. While this does not preclude construction of a house, it does limit design options. Additionally, the minimum 60 foot distance between houses is not necessarily consistent with the intent of the R -C District to bring neighbors closer together. As such, the Planning Commission and City Council should provide direction whether the side yard setback should be reduced, possibly to 15 feet (as required in the R-3 District) or 10 feet (as required in the R-4 District). Amending the Zoning Ordinance may be considered as part of the forthcoming re -codified Ordinance. Planning Report - Grenins Mississippi Hills Page 7 Building Design. The R -C District requires a limited architectural control that the attached garage may not exceed 40 percent of the front facade. As part of a PUD, the City may require additional architectural control, especially in consideration of density bonuses. Golf Course. The golf course use is a conditional use in the R -C District. The previous design was a conceptual layout, whereas the current plans were prepared by a firm specializing in golf course design. The revised golf course is still an eighteen hole executive design. The following conditions are also required for golf courses in the R -C District per Section 20-77-5.B of the Zoning Ordinance: The principal use, function or activity is open and outdoor in nature. Comment. The golf course is an outdoor activity in compliance with this requirement. 2. Not more than 5 percent of the land area up to a maximum 4,000 square feet of the site shall be covered by buildings or structures. Comment. Concept plans fro proposed buildings have been indicated and detailed plans will be required for each structure as part of a development stage PUD application for Outlot B. The final building designs will need to conform with this requirement. 3. The use will not negatively impact abutting or neighboring existing or potential residential uses. Comment. The City Engineer will be completing an analysis of the course design to ensure that all of the previously noted conflicts have been addressed. No landscape plan has been provided for the golf course and will be required. Specific attention will be required for buffering the adjacent residential uses from the club house area, as well as minimizing any potential conflicts from errant balls. 4. When abutting a residential use or a residential use district, the property is screened and landscaped in compliance with Section 16 of [the Zoning Ordinance]. Comment. See #3 above. 5. The traffic generated by the use can be adequately accommodated (both volume and weight) upon the City streets serving the property on which the use is located. Comment. The golf course is to have direct access off of CSAH 39. This access will require approval of the Wright County Highway Department which has expressed concern regarding location of the access. Planning Report - Grenins Mississippi Hills Page 8 Project Staging. In that the golf course is to be the only open space and focus of the basis of the project in terms of justifying density bonuses, the City should have assurances that the golf course will be implemented. The number of residential building permits issued within this project should be limited to eight until the golf course is completed. The eight new dwellings would be equivalent to the base density allowed for this parcel under the Comprehensive Plan. The Planning Commission and City Council will need to determine the threshold for considering the golf course "complete" be it completion of grading/landscaping, open for play or construction of the club house facilities. Bed and Breakfast. The concept plan for Outlot B includes a proposed bed and breakfast use. This use is not a permitted or conditional use within the R -C District. Therefore, a first step is to determine if such a use is appropriate in this District and for this particular site. A bed and breakfast may be appropriate if intensity of the use and the impacts to adjacent property is limited. Particular concern would be for the number of rooms, hours of operation and related traffic generated in a planned rural residential area. The use could be accommodated by amending the R -C District to include bed and breakfast uses. If the Planning Commission and City Council believe that bed and breakfast uses may be appropriate in the R -C District with appropriate controls, our office would recommend an amendment to make bed and breakfasts a conditional use in the R -C District. If so directed, such an amendment could be prepared for consideration as part of the development stage PUD application for Outlot B. Traffic. The proposed project uses existing streets to provide access to all of the residential lots and golf course facilities. This arrangement provides the maximum amount of open space for the golf course, while minimizing infrastructure costs. The City Engineer has determined that the capacity of Kadler Avenue is insufficient to handle the proposed traffic generated by the residential uses without a 1'/ -inch bituminous overlay. The applicant is willing to provide this improvement from CSAH 39 to the north plat line. However, The City Engineer also cites safety concerns with regard to the intersection of Kadler and CSAH 39 due to existing sight -line problems. Increasing traffic volume at this intersection only adds to the issue. The proposed golf course club house and bed and breakfast use are proposed to access directly from CSAH 39. As noted above, this access is subject to review and approval of Wright County Highway Department, which has a concern with the location of the proposed access due to sight -line issues. Off -Street Parking. Although Outlot B is not anticipated to be developed with the initial phase of the project, off-street parking will need to be provided before the golf course can open. The Zoning Ordinance does not include a requirement for golf course parking. The APA, in a report titled Off -Street Parking Requirements, lists a number of alternatives for determining the number of parking stalls that should be provided. The only requirement that is not based in part on employees is the following from Hilton Head, South Carolina: Planning Report - Grenins Mississippi Hills Page 9 Four spaces for each green, plus 50 percent of the requirements for any other associated use, except in planned residential, resort, or commercial developments, which have otherwise adequate provisions for parking. Based upon this formula, a minimum of 72 parking stalls would be required just for the golf course alone. Additional parking will also be required for the club house facilities and the bed and breakfast. The concept plan for Outlot B illustrates a proposed parking area of 84 stalls and three stalls for the bed and breakfast. The applicant will be required to provide the minimum 72 stalls before the golf course may open. Plans for the parking area must be submitted, and the parking lot must include asphalt surfacing with concrete curb. Trails. As part of the project, the applicant is proposing to construct a trail adjacent to Kadler Avenue from CSAH 39 to the north property line, although the trail is not indicated on the plans. The proposed trail is recommended by the Parks and Recreation committee and would provide connection to existing trails on CSAH 39 towards the access to the River and is considered positive. Beyond construction of the trail, the applicant will be required to make appropriate park dedication at the time of final plat approval. Property Values. Although no specific study has been completed, development of the concept plan would be expected to enhance area property values, especially those lots with view of the golf course. Service Capacity. With exception to the concerns noted regarding the capacity of streets serving the subject property, the proposed concept plan is not anticipated to negatively impact or overburden the City's service capacity. Access Easement. The applicant is proposing to provide a 66 foot wide access easement to serve a parcel that had been previously divided from the subject parcel at the terminus of 99th Street. Development Contract. Upon approval of the applications, the applicant would be required to enter into a development contract with the City. All required securities and park dedication requirement will be required as part of the Development contract. CONCLUSION The decision regarding this application must be carefully considered in that it is the first implementation of the R -C District. As a rezoning, City Officials have greater discretion in reviewing the concept plan to ensure it meets the purpose and intent the City anticipated for development in this area by establishing the R -C District and density bonuses in the Comprehensive Plan. Planning Report - Grenins Mississippi Hills Page 10 The potential development of the subject parcel as a residential/golf course use is an attractive concept. which would be compatible with and enhance existing development in the area. However, the project provides no real physical integration between the golf course and residential units other than the view sheds. Accessibility,. to the golf course, a basic objective of the R -C District, is to be provided through relatively undefined special privileges". The Planning Commission and City Council must determine if the overall project design and golf course use, residential view sheds and proposed amenities is the type of development pattern that was to be encouraged in the R -C District given that the same project could be developed under the provisions of the A-2 District, with exception of the additional density. Additionally, there are functional concerns with the proposed preliminary plat regarding traffic impacts and access to CSAH 39. Other issues include the need for more detailed plans regarding trail and street improvements, golf course landscaping, and details regarding resident privileges. The lack of information regarding many of the identified issues may be attributed in part to the applicant's desire to rush through the planning approval process in order to begin construction of the golf course yet this season. As a consequence of the applicant's haste, the project is not fully explained or planned out, which results in many unanswered questions. The City needs to review complete development applications make responsible decisions that ensure quality development within the community. While the City staff, Planning Commission and City Council always act to expedite the planning process for developers, the questions left unaddressed by incomplete plans often serves to delay the project. In this case, resolution of the practical issues with the project may impact the final layout of the project making consideration of a development stage PUD plan possibly premature. Our office's specific recommendation and options for Planning Commission and City Council action are outlined in the Executive Summary of this report. PC. Mike Robertson Elaine Beatty Andy MacArthur Larry Koshak Chris Bulow Planning Report - Grenins Mississippi Hills Page 11 \SMPQOj\ '202'.8LL --jPAO lw(l 4cn -uri t. 29: 1,0 t999 MCMAS CRENINS MISSISSIPPI HILLS OTSECO. tAN FCR. 8ULOW. INC. r,..- � ; -' am-- an rn Z i 44 am-- an —^7r— •. m . . •,nur ..r-..wnu ,.(rri••1n., lyld .\MyNINI'.329d \CV NI 'Mo7nG w. -. .VT.�.-'Rf— v+r f 1n•........�..ea•w.r.,.r :Vol '! --7T r -naso ,• •.. •"rr "';...:.:..i ,•ii N71 '17J' 3510 • \ Idd1551551Y1 SNIN321`0 f /OA90�UW 'a Of! c. } �'� ')j � i, .S iji a �►•` 7 j i i).��3i is 1 j �I '; 1 � �-$ �: T �a9$�= � •' '^""f"' r • is if 1 rr 9 i=La ii i' r T. 13 • :3 i 3 3 ;'�%- _ �'j{'�'3. u• f r. �• .•ayr.:• • • t\� g v. f�+.. .%.•:'..f' e I I! •� ifi+.-!, 7 7 t •i=.'33 :. i i i I i , �. ! _�• 1 �' i I•• \s3:� =! IJi IL: jyyy i - j •: i - } _ie _ r � Tar a a! ; a, � - t- _I --s-- 4 11 j 7•;8i` -x' j= i :pt�ly 41 ;?„ \'b j: •� it i it ! � ! �' � I I ( `,. ! 1 j� �- i I � �,: �, !Ili :: -L'?: % o _ a ` t. ! � I �'. i� i ' ' i 1 � i �_ •i I %ill �d:. _ - t - �•. \ i r. }. I. ! is ,• h• I. i I! 1 `� ! ' rc a ,x �i}%•s •• ?; _J i i %:3:}F _Ifl "" \ \ 1 �' - \ ill• I'e� jj ' .OR eH va _K_--.'�' rw �•,-..�- afa aCitctao7}" •' ,_: a � �� .\`_ til �� j' 1� MA. �.] 7 J•. .--` ��_.` =ice i f�� .1 �� ``r II, JI �\ i' / 1'•\ I• if -f -�j� r�; �Y' � —1'f_- ��^�Mlj !f I .'- -.... 1_•'-%'..- �qD_ ! `' •! I ;• �l ;.?.;1 La'C�. i i' -:i. i '��•��. r /• •iI l I I _ �d ; r �..:.I �.•.. - _ FtJ i1 1- I .' 1 F 1 s� ..l i !. _ J• �'+��1' ;' `_�' / goo �L �.. n 9+. •i o3't /�: ti -a! ' i �� >;, = X111_ !f i� �� i�-—f: _•'f' C_.v 'QT // � r: SCJ, -�� 1�.-{Y.� � 6 J � '; ..� \ 4Q3 ! 1...� -� -- _ �: . : �-'- ,• l� ��J�\ O• / . S'J.IcFl1 6661 Le Cl I( to unr uaA 6h0 111d-1f19\EOZC\r(rdd\RSCS\ JUN -17-1999 11:42 NAC 612 595 9837 P.02ZW t 5 c,d'g voa vla �e.- r m EXHIBIT A JUN.17.1999 3:04PM Hakanson ENGINEERING REVIEW Anderson Planned Unit Development ■■..., Assoc.,Inc. for City of Otsego by Hakanson Anderson Associates, Inc. Submitted to: Mike Robertson, Administrator NO. 391 P.2/7 cc: Elaine Beatty, Clerk Dan Licht, City Planner Andy MacArthur, City Attorney Chris Bulow, Bulow Inc. John Oliver & Associates, Surveyor & Engineer Reviewed by: Date: Proposed PUD: Lawrence G. Koshak, PE Craig J. Jochum, P.E. John A. Harwood, P.E. June 16, 1999 Grenin's Mississippi Hills Review No. 2 Street Location of Part of NW % of Section 14, Twp 121, Range 24, Wright County, Minnesota, lying north of CSAH 39. Also lying east of KadlerAve., North of CSAH 39, West of Kahler Ave. and south of the Island View lots. Applicant: Bulow Inc., and Donald & Phyllis Greninger Owner of Record: Donald & Phyllis Greninger Jurisdictional Agencies City of Otsego, Wright County (but not limited to): Permits Required (but not limited to): NPDES CAShareWlunidpa1W0TSEG0Q 1971ot2197RVVN2,doc JUN. 17. 1999 3*05PN N0. 391 P. 3,/7 INFORMATION AVAILABLE FOR REVIEW: • Preliminary plat of Grening's Mississippi Hills, prepared by John Oliver & Associates, signed and dated 6/3/99, latest revision, • Preliminary grading pian of Grenings Mississippi Hills, prepared by John Oliver & Associates, unsigned and dated 6/3/99, latest revision. • City of Otsego Zoning and Subdivision Ordinances, February 1991 • National Wetland Inventory Map, 1991 • City of Otsego Engineering Manual, March 1999 • Minnesota Rules, Chapter 4410 — EAW Requirement • Drainage Calculation by John Oliver & Assoc., dated 5/26/99 • Septic/Drainfield Report by ECO Systems, dated 6/2/99 • Wetland Determination & Delineation Report by GME Consultants dated 5/28/99 C:\S hargWonlcipaRA07SEGG \2197\ot2197FIV W2.doc JUN.17.1999 3:14Pr1 NO. 391 P.4/7 DEVELOPMENT OVERVIEW (Revised plan as of 6/3/99): The review proposal consists of single family 1 -acre lots accessing existing bituminous paved streets. Eight lots access Kahler Ave., and 12 lots access Kadler Ave. No new streets are proposed. Cutlot B is shown as the location for golf course clubhouse and Bed & Breakfast business. Kahler Ave. was recently paved in 1996 to current City Standards for a 9 -tan capacity roadway. Kadler Ave. was paved in 1989, and the capacity is estimated to be a a to 7 ton design. The remaining property not residential is proposed as an 18 -hale executive golf course, The golf course accesses from CSAH 39, GRADING: The revised grading plan shows only pad grading on the residential lots. The majority of the grading proposed is on the golf course, Based on the wetland delineation report, only a ditch appears to be wetland, therefore the impact on the grading plan is not significant. The grading planning must be signed by a registered civil engineer at the time the final grading plan is submitted. However, it would be appropriate to list the engineer who was responsible for the grading plan design without a signature on the preliminary plat. PUD CONFIGURATION, LOT SIZE, DENSITY & SETBACK Refer to comments by NAC, City Planner, LOT BUILDABILITY: The soils report for septic tank/drainfields by ECC system was received and reviewed. The lot numbers appear to have changed for the lot on the east side, however, we assume that old lots 13 through 20 are now 1 through 8. The report states that lot 2 (old lot 14) does not have sufficient soils for any standard or mound system, We would recommend that this lot be consolidated in the adjacent lots. The rest of the lots according to the report are buildable in relation to septic systems. STREETS & TRAFFIC/ACCESS ISSUES: We have concerns about placing the additional traffic generated from 12 new residential properties on Kadler Ave. This street is presently not designed to meet current City Standards, although the street was constructed with 3 inches of asphalt. We would recommend that the street be brought up to the current standard of 9 -ton capacity should the proposal be considered. We would recommend that a 1 %" asphalt overlay be placed on the street to bring the street up to 9 ton standard. Kahler Ave, has been constructed to 9 -ton standard. Kahler Avenue should be adequate to serve the additional 8 residential units. CAS hare\MunlclpaRAOTSEGO\2197\ot2197RVw2,doc JUN.17.1999 3:15PM N0. 391 P.5/7 Traffic volumes at the intersection of Kadler Ave, & CSAH 39 will increase and therefore safety issues are a concern, Site distance at the intersection needs to be reviewed. The Assistant County Engineer did send a letter of review dated 6/7/99, based on the submittal made to him by the developers. The county did not comment on the safety issue at Kadler Ave. and CSAH 19, This may be an issue that the City needed to look into further. An Access Permit will be required by the County for the Golf and Bed & Breakfast site access, Also, a turn lane and a bypass lane will be required at that access on CSAH 39. The plat must provide 50 feet of R.O.W. dedicated to the county, The Assistant County Engineer relates that the drainage change in relation to the County Road will have no impact on the ditch system. SOIL & EROSION CONTROL: We have not received a map of the soils, nor has an Erosion & Sedimentation Plan been provided. WETLANDS: A wetland determination and delineation report has been received and reviewed. We assume that the wetland on the site will not be impacted by this project. SURFACE WATER MANAGEMENT We have received the stormwater calculation and report prepared by John Oliver & Associates. We have the following comments about the report, Our comments are restricted to be items of the overall plan assumption. 1, Provide a summary which relates the numbering in the TR -20 model with the basin numbers shown on the drainage maps. 2. Under proposed conditions, will all of the 100 -year storm event be contained within Area 11, or will there be overflow to Kadler Avenue? The present ditch system along Kadler Avenue is just able to maintain itself during heavy rainfall. A driveway culvert downstream has been washed out in the past due to the stormwater coming down Kadler Avenue. 3. The report shows an elevation of 938 for Basin #11 while the grading plan shows a 942.0. Please clarify, Cr\Share\MunicipaM0TSEG0\2197\at2197RVW2,doc 2 JUN. 17. 1999 3:16PN N0.391 P.6/7 4. Basin #13 is proposed to be a landlocked pond. The high water elevation in this pond needs to be calculated per the engineering manual (Appendix C, 5.0 E8). Infiltration is not allowed, This elevation will determine the impact on the adjacent lots. This elevation must be contained within the drainage easement, Provide justification for the normal water elevation in the pond, 5. There is a series of 3 ponds on the golf course in the southwest comer, What is the overflow elevation? How do these ponds affect adjacent lots? 6, What do the pond elevations shown on the grading represent? 7. Label the 100 -year pond flood elevations, or the elevation from two 100 -year back-to-back storms for landlocked ponds, on the grading plan. GOLF COURSE A revised golf course has been provided dated 6/3199. The revised course is about 300 yards shorter than the original. The new layout has shortened and realigned most holes to minimize internal and extemal conflicts. The shorter total distance has allowed for more internal buffer space between a tee and an adjacent fairway, tee box or green. There still are two major areas of off -course conflict, being the left side of Hole #1, where balls will fly onto County Road 39 and the left side of Hole 16, where existing residential lots are in the line of ball flight. Internally, the area between Holes 8 and 10 will be somewhat of a conflict but not to an usual extent, The revised alignment has relatively short par 3 holes around the perimeter of the property with the tee shots on these holes generally aimed away from the property line. For most tee shots, the ball will likely stay within the bounds of the course, There will be exceptions, with the most problems from errant tee shots being on Hales #3 and #15. The realignment has placed a number of tee boxes quite close to the adjoining lots. This is a significantly improved course layout. It is still a lot of golf for the size of the property, leaving very little buffer space between golfing activities and adjacent property use. The city should evaluate the desirability and viability of this type of development. This is not a golf course community in that the housing is on small row lots and are not really golf course oriented. The actual golf course layout is such that it is workable, with the identified limitations. This is not a well planned and integrated golf course community. ENVIRONMENTAL A statement by the owners should be provided that there is or is not any environmental issues on the site, i.e.; dumps, landfills, chemical or petroleum spill, etc. G:\Share\Municipa1W0TSEG0\2197\w21971RVW2,dcc 3 JUN.17.1999 3:16PM OTHER CONSIDERATIONS: NO. 391 P.7/7 1. Drainage and utility easements on lots abutting non -platted parcels must be a minimum of 10' wide, 2. Benchmarks need to be shown on the plans. RECOMMENDATION: The engineering issues that are the most concern are traffic, drainage and sewage disposal. It is our opinion that the traffic issues remain unsolved until the site distance at Kadler Ave. & CSAH 39 is corrected and the requirement for an overlay of asphalt on Kadler Ave, to support the proposed additional traffic is met. The Stormwater Management issue may be readily solvable, and can be addressed sufficiently with further consideration of the ponding and overflows as noted in the comments above, Review of the soil report for sewage disposal presents problems in some areas for an adequate treatment system. This preliminary plat cannot be recommended for approval until those above issues are solved. C;1SharelMunicipaRAOTSEG0121971ot2197FiVW2.doc 4 I =' G If WRIGHT COUNT �'' li DEPARTMENT OF HIG WAY IS59WA F'IyEngneer P.— way . . way Engineer i 1r 1 682-7388 Wright County Public Works BuildijU 1901 Highway 25 :Forth _ Buffalo, Minnesota 55313 Otsego Mayor and City Council Otsego City Planning Commission 8899 Nashua Avenue NE Otsego, MN 55330 Jct. T.H. 25 and C.R. 138 Telephone (612)682.7383 Facsimile (612) 682-7313 June 7, 1999 RE: Proposed Grenins Mississippi Hills Golf Coarse Access to CSAH 39 Honorable Mayor, City Council, and Planning Commission: tatHAWKINS P.E. Aasi9ta t Highway Engineer 682-7387 RICH.-kRD E. MARQUE.=— Right of Way Agent 682.7386 We have reviewed the preliminary layout for the golf course development that is proposed to be located along CSAH 39 in Otsego. We offer the following comments. 1) An access permit will be required for the proposed clubhouse access to CSAH 39. The actual access location will be determined in the field after review of the site to determine the safest access point with respect to sight distance. Existing field entrances will be required to be removed. A 12 -foot wide right turn lane and bypass lane will be required to be constructed by the developer on CSAH 39 for the clubhouse access. Specific details of the turnlane & bypass lane layouts and section designs required will be identified as part of the access permit special provisions. Richard Marquette of our office should be contacted about processing an access permit. 2) A right-of-way dedication of 50 feet from centerline on CSAH 39 will be required, consistent with the County's Transportation Plan. However, a wider dedication would be required if the City is planning to locate a separated bike trail or pedestrian trail in the right-of-way in this area. 3) The proposed development should have "zero impact" to the existing county highway ditch with regard to surface storm water flow rate, and peak flow. Equal Opportunity / Affirmative Action Employer Page Two City of Otsego June 7, 1999 4) A utility permit will be required if there are to be any utilities constructed within the CSAH 39 right-of-way. Bill Cordell of our office should be contacted for processing of a utility permit. When received, the preliminary layout will be reviewed by our office regarding impact to County State Aid Highway 39 with regard to access and utilities. The City Engineer for Otsego should review the plans with regard to internal grading, drainage, and street improvements, for conformance to city standards. We trust that this information is helpful to you. Please call me or Wayne Fingalson, County Engineer, if you have any questions for concerns regarding the above comments. Sincerely, Virgil G. Hawkins, P.E. Assistant County Engineer cc: Wayne Fingalson, County Engineer Richard Marquette, Engineering Assistant Bill Cordell, Senior Highway Technician Larry Koshak, Hakanson Anderson, Inc. Michael Robertson, City of Otsego Elaine Beatty, City of Otsego File 31 To: The City of Otsego Planning Commission City Council RE: Grenins Mississippi Hills Proposed Development Grenins Mississippi Hills development will consist of 20 high end homes surrounding an 18 Hole Executive Golf course. The golf course has been designed by a well known professional and has been reviewed by a representative of the MGA. The MGA will also give the golf course an MGA rating, making it known to 91,000 members and giving it statice with other golfers. The homes will have varied setbacks and elevations taking advantage of the gently rolling terrain, putting the homes closer together but appearing further apart with maximum privacy for the home owner. Which will give this development_ a unique look both from the surrounding streets and from the golf course. The golf course will be privately owned and operated, expertly maintained, and open to the public. It maintains future open space and supports the community by storing and cleansing on and off- site storm water by incorporating a number of ponds. The ponds have been strategically located to work with the existing drainage patterns and compliment the course layout, serving as water features, while providing a recreational opportunity for the entire community of Otsego. The Club house would be professionally managed by an experienced management firm. The club house would have many uses, including small gatherings, small business meetings, weddings, graduations and family functions. We have plans for a limited I of pro shop accessanes. Catering would be available via other local business's. Convenience food and beverages would be available for sale to the public at the club house. The surrounding home owners will have special privileges, one being the benefit of convenient --- -- - access to the golf course. Lots 1 through 12 Block 1 could be allowed, by an easement across the East end <' of their properties, to start golfing on hole 7 and ending on hole 6 just by calling and notifying the club house. Lots 13 through 20 Block 2 and surrounding residence will be able to access the club house by a - easement for pedestrian traffic between lot 20 and the bed and breakfast. This easement would be maintained by the golf course as part of there grounds keeping. These 20 sites will be considered charter members and have special pricing and preferred tee times as well as providing a place for community interaction. The Bed and Breakfast would be professionally managed by a reputable management company. In our preliminary estimates the Bed and Breakfast would consist of not more than 10 guest rooms in a Victorian or Country style. The Club house and out buildings would have a matching exterior to give it a cozy and relaxing atmosphere. The Bed and Breakfast would offer year round accommodations, offering cross country skiing and snowmobiling in the winter months and golf packages in season for the guests. In conclusion, our proposed project is beneficial to current residents, other local business's, the new land owners and the entire City of Otsego. The homes and golf course facility will be an asset to the community. This project meets and exceeds all zoning guidelines and will be something we can all be proud to have in our community Yours, Chris Bulow President - Bulow Inc. JUN -22-1999 11:41 NAC 612 595 9837 P.02 N W^ NORTHWEST ASSOCIATED CONSULTANTS INCN%moo COMMUNITY PLANNING - DESIGN - MARKET RESEARCH MEMORANDUM TO: Otsego Mayor and City Council FROM: Daniel Licht DATE: 22 June 1999 RE: Otsego - Crimson Ponds; Rezoning/Preliminary Plat FILE NO.: 176.02 - 99.05 Please be advised that the Planning Commission, at their meeting on June 21, 1999, continued the public hearing for the above referenced application. The Planning Commission had voted 7-0 at their May 17, 1999 meeting to recommend approval of the rezoning. Following the close of the public hearing, the Planning Commission voted 6-0 to recommend approval of the Crimson Ponds Preliminary Plat. The public hearing had been continued from the May 17, 1999 meeting to allow the applicant to submit required engineering plans and data for review. The applicant had also been directed by the Planning Commission to consider eliminating the one proposed access to 85th Street. Objection to this access point was expressed by property owners on the north side of 85th Street that the intersection would create excess traffic and headlight glare that would negatively impact their properties. The applicant did not eliminate the access point on revised plans. Staff noted at the Planning Commission meeting that the proposed intersection is off -set from the houses to the north of 85th Street, which will minimize any headlight impact. From a traffic standpoint, 85th Street is a designate collector street. In order to minimize the traffic using this access point, the Planning Commission is recommending that the final platting of the project start at the south and move northward, using 78th Street/Page Avenue for initial access. By the time the project is built out, all of the access points to Page Avenue should be constructed, minimizing use of the 85th Street access. Additionally, residents will be accustom to using Page/78th Street as their primary route to/from the neighborhood. The City Council has the following options available with regards to the applications. The actions listed under option A are consistent with the recommendations of Staff and the Planning Commission. Appropriate findings of fact and a Zoning Ordinance have been attached for reference_ 5775 WAYZATA BOULEVARD, SUITE 555 ST. LOUIS PARK. MINNESOTA 55416 PHONE 612-595-9636 FAX 612.595-9837 E-MAIL NAG@WINTERNET.COM JUN -22-1999 11:42 NAC 612 595 9837 P.03 A. Approval (each approval should be made as a separate motion): 1. Motion to rezone the subject site from A-1 District to R-4 District based upon a finding the a the proposed use is consistent with the specific provisions of the Comprehensive Plan and adopted Zoning and Subdivision Ordinances. 2. Motion to approve the Preliminary Plat for Crimson Ponds, subject to the following Conditions: a. Approval of the Preliminary Plat does not guarantee access to sanitary sewer service. The City shall only guarantee such service to approved final plats with signed contracts or through a financial commitment for such service to assure the City of timely development. b. The preliminary plat is revised to label Block 6. C. The preliminary plat is revised such that 82nd Circle does not exceed 500 feet. d. The preliminary plat is revised to provide a minimum 94 foot width for all lots fronting the turnaround of a cul-de-sac. e. The preliminary plat is revised to indicate that the required side yard setback is 10 feet. f. All park and trail dedication requirements shall be satisfied at the time of final plat approval. g. A landscape plan be submitted for all proposed ponding areas providing natural, low maintenance planting materials in areas subject to intermittent flooding. h. An EAW is prepared and processed in accordance with Section 39 of the Zoning Ordinance. All grading, drainage and utility plans shall be subject to review and approval of the City Engineer. I. The applicant submit a planned phasing plan for development of the subdivision. j. Final platting of the subdivision is to begin at the south with access from 78th Street / Page Avenue. k. Comments of other City Staff. 2 JUN -22-1999 11:43 NAC 612 595 9837 P.04 B. Motion to deny the proposed Zoning Ordinance amendment based upon a finding that the proposed use Is inconsistent with the provisions of the Comprehensive Plan and adopted Zoning and Subdivision Ordinances_ C. Motion to table the application (specific direction should be provided to the applicant regarding necessary information to be submitted for the Planning Commission and/or City Council to act on the application). PC. Mike Robertson Elaine Beatty' Andy MacArthur Lary Koshak Dennis Backes Tom Loucks JUN -22-1999 11:43 NAC CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA Applicant's Name: Backes Companies Incorporated 612 595 9837 P.05 Zoning Amendment Findings of Fact & Decision Request: Request for approval of a Zoning Ordinance amendment (map) to rezone the property legally described by Exhibit A ("the property") from A-1, Agricultural - Rural Service Area to R-4, Residential - Urban Single Family District. City Council Meeting Date: 23 June 1999 Findings of Fact: Based upon review of the application, the recommendation of the Planning Commission and evidence received, the City Council of the City of Otsego now makes the following findings of fact and recommendation: The legal description of the property is: See attached EXHIBIT A. 3. The property lies within the Sanitary Sewer Service District as identified in the 1998 Comprehensive Plan Update. 4. The property is zoned A-1, Agricultural - Rural Service Area. 5. Section 23-3-2.17 of the Zoning Ordinance directs the Planning Commission and City Council to consider the possible adverse effects of the proposed amendment, with their judgement based upon (but not limited to) the following factors: A. The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Pian. Finding: The Comprehensive Plan guides the subject parcel for urban low density development. The proposed preliminary plat has a proposed gross density of 0.7 units per acre. The low density can be attributed to the number of wetlands on the property. Based upon the specific provisions of the Comprehensive Plan, the requested rezoning is appropriate. The following policies may be cited specifically in support of the requested rezoning. Except in unique cases, all new residential urban growth shall be confined to the immediate urban service area within the sanitary sewer service district and shall hook up to municipal sanitary sewer and water service. (Policy Plan, pg. 44) A mix of housing types in a manner consistent with the City's land use plan shall be developed. (Policy Plan, pg. 44) JUN -22-1999 11:44 NAC 612 595 9837 P.06 B. The proposed use's compatibility with present and future land uses of the area. Finding. This area is planned for urban density residential development. Adjacent parcels to the east and south are anticipated to develop with similar land uses. The uses to the west and north are developed with unsewered single family uses on one acre or larger lots. The proposed uses of the subject property are anticipated to be consistent with these areas as well. C. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Finding: The preliminary plat conforms with all applicable performance standards outlined in the Zoning and Subdivision Ordinance_ D. The proposed use's effect upon the area in which it is proposed. Finding: The proposed development will not have an negative impact to the area in that the use is anticipated and will be developed within all performance standards. E. The proposed use's impact upon property values of the area in which it is proposed. Finding: Although no study has been completed, the proposed use is not anticipated to negatively impact area property values. F. Traffic generation by the proposed use in relation to the capabilities of streets serving the property. Finding: The preliminary plat is to be adequately served by public streets serving the property. G. The proposed use's impact upon existing public services and facilities including parks, schools, streets, and utilities and its potential to overburden the City's service capacity. Finding: The Comprehensive Plan anticipated the development of the proposed use. Therefore, the preliminary plat is not anticipated to have a negative impact to the City's service capacity. 6. The planning report dated 12 May 1999 and memorandum dated 16 June 1999 prepared by Northwest Associated Consultants, Inc. are incorporated herein. 7. The reports dated 12 May 1999 and 16 June 1999 prepared by the City Engineer Hakanson Anderson Associates, Inc. are incorporated herein. 2 JLH-22-1999 1144 NAC 612 595 9837 P.O? 8. The Otsego Planning Commission conducted a public hearing, at their regular meeting on 17 May 1999 and continued to their meeting on 21 June 1999, to consider the proposed conditional use permit, preceded by published and mailed notice. Upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 7-0 vote that the City Council approve the Zoning Ordinance amendment based on the aforementioned findings. Decision: Based on the foregoing information and applicable ordinances, the requested Zoning Ordinance amendment is hereby approved based on the most current plan and information received to date. PASSED by the Otsego City Council this 23th Clay of June, 1999 CITY OF OTSEGO M Larry Fournier, Mayor Attest: Elaine Beatty, Zoning Administrator/City Clerk 3 JUN -22-1999 11:45 NAC 612 595 9837 P.08 ORDINANCE NO.: CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO PROVIDE FOR A CHANGE IN ZONING CLASSIFICATION FOR PROPERTY INCLUDED AS PART OF THE CRIMSON PONDS PRELIMINARY PLAT. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. The official Zoning Map of the Otsego Zoning Ordinance is hereby amended to change the zoning classification of the following described property (the %property"). See attached EXHIBIT A Section 2. The property is hereby rezoned from an A-1, Agricultural -Rural Service District designation to an R-4, Residential -Urban Single Family District designation. Section 3. The Zoning Administrator is hereby directed to make appropriate changes to the official Zoning Map of the City of Otsego to reflect the change in zoning classification set forth above. Section a. This Ordinance shall become effective immediately upon its passage and publication. PASSED by the Otsego City Council this 23rd day of June 1999. CITY OF OTSEGO BY: Larry Fournier, Mayor ATTEST: Elaine Beatty, Zoning Administrator/City Clerk JUN -22-1999 11:46 NAC CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA Applicant's Name: Backes Companies IncoMorateLd 612 595 9837 P.09 Preliminary Plat Findings of Fact & Decision Request: Request for approval of a preliminary plat for entitled "Crimson Ponds" consisting of 180 single family lots on the property legally described by Exhibit A ("the property"). City Council Meeting Date: 23 June 1999 Findings of Fact: Based upon review of the application, the recommendation of the Planning Commission and evidence received, the City Council of the City of Otsego now makes the following findings of fact: 1. The legal description of the property is: See attached EXHIBIT A. 3. The property lies within the Sanitary Sewer Service District as identified in the 1998 Comprehensive Pian Update. 4. The property is guided for low density residential development by the 1998 Comprehensive Plan Update and is zoned R-4, Residential Urban Single Family. 5. The Crimson Ponds Preliminary Plat consists of 180 single family lots. 6. The planning report dated 12 May 1999 and memorandum dated 16 June 1999 prepared by Northwest Associated Consultants, Inc. are incorporated herein. 7. The reports dated 12 May 1999 and 16 June 1999 prepared by the City Engineer Hakanson Anderson Associates, Inc. are incorporated herein. 8. The Otsego Planning Commission conducted a public hearing, at their regular meeting on 17 May 1999 and continued to their meeting on 21 June 1999, to consider the proposed conditional use permit, preceded by published and mailed notice. Upon review of the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 6-0 vote that the City Council approve the Zoning Ordinance amendment based on the aforementioned findings. Decision: Based on the foregoing information and applicable ordinances, the requested Zoning Ordinance amendment is hereby approved based on the most current pian and information received to date, subject to the following conditions: JUN -22-1999 11:46 NAC 612 595 9837 P.10 1. Approval of the Preliminary Plat does not guarantee access to sanitary sewer service. The City shall only guarantee such service to approved final plats with signed contracts or through a financial commitment for such service to assure the City of timely development 2. The preliminary plat is revised to label Block 6. 3. The preliminary plat is revised such that 82nd Circle does not exceed 500 feet. 4. The preliminary plat is revised to provide a minimum 94 foot width for all lots fronting the turnaround of a cul-de-sac. 5. The preliminary plat is revised to indicate that the required side yard setback Is 10 feet. 6. All park and trail dedication requirements shall be satisfied at the time of final plat approval. 7. A landscape plan be submitted for all proposed ponding areas providing natural, low maintenance planting materials in areas subject to intermittent flooding. 8. An EAW is prepared and processed in accordance with Section 39 of the Zoning Ordinance. 9 All grading, drainage and utility plans shall be subject to review and approval of the City Engineer. 10. The applicant submit a planned phasing plan for development of the subdivision. 11.. Final platting of the subdivision is to begin at the south with access from 78th Street / Page Avenue. 12.. Comments of other City Staff. PASSED by the Otsego City Council this 23rd day of June, 1999 CITY OF OTSEGO Bv: Larry Fournier, Mayor Attest: Elaine Beatty, Zoning Administrator/City Clerk 2 TOTAL P.10 NORTHWEST ASSOCIATED CONSULTANTS NINC COMMUNITY PLANNING - DESIGN - MARKET RESEARCH MEMORANDUM TO: Otsego Planning Commission FROM: Daniel Licht DATE: 16 June 1999 RE: Otsego - Crimson Ponds; Preliminary Plat Revisions FILE NO.: 176.02 - 99.05 BACKGROUND The Planning Commission at their meeting on May 17, 1999 tabled action on the above referenced application to allow the applicant to provide required engineering information and address concerns with a proposed access to 85th Street. The applicant, Backes Inc., has submitted revised plans as requested. The revised plans do not, however, eliminate the proposed 85th Street intersection. The City Engineer will address their concerns in a separate review. The focus of this memorandum is to discuss the proposed access to 85th Street. ISSUES ANALYSIS The Crimson Ponds Preliminary Plat includes one access point to 85th Street. These plans were discussed with staff prior to application. The original plat designs included_ three access points to 85th street along the north plat line. As noted during the meetin "- May 17, 1999, the plans were revised upon staffs recommendation to provide only one access to 85th Street. 85th Street is designated as a collector street within the Comprehensive Plan. The purpose of a collector street is to gather traffic from individual neighborhoods and route it towards higher capacity roadways with more distant destinations. In this sense, 85th Street serves to take traffic from the neighborhoods out to CSAH 42 and TH 101 to locations beyond the City. 5775 WAYZATA BOULEVARD, SUITE 555 ST. LOUIS PARK, MINNESOTA 55416 PHONE 6 1 2-595.9636 FAX 6 1 2-595-9837 E-MAIL NAC@ WINTERNET.COM Eliminating the proposed Paget Avenue/85th Street intersection would require substantial revision to the preliminary plat, because of limits on block and cul-de-sac designs. The preservation of a five acre parcel at the northeast comer of the plat also effects potential access points to both 85th Street and Page Avenue. These changes also effect proposed access points to Page Avenue from the forthcoming Pheasant Ridge subdivision to the east of Page Avenue. The access points to Page Avenue would need to be revised in order to insure proper traffic flow. Simply eliminating the Padget/85th Street intersection would route all of the traffic from the north third of the preliminary plat bast the lots at 83rd Street and Page Avenue. The principal concern with the proposed Padget Avenue/85th Street intersection is glare from headlight traffic impacting the houses on the north side of 85th Street. As shown on the submitted plans, Padget Avenue is off -set with respect to the houses to the north of 85th. The northbound lane of Padget Avenue will likely not align directly with these houses. As such, any glare impact would be from turning movements from Padget Avenue to 85th Street. It may be anticipated that the majority of these movements will be to east bound 85th Street, towards CSAH 42. The impact caused by these turning movements would be no different than the same turning movement at the Page Avenue and 85th Street intersection, although these houses face towards Page Avenue, not 85th Street. Eliminating the proposed Padget Avenue and 85th Street intersection just serves to shift the potential impact of traffic accessing 85th street from this project. CONCLUSION Based upon the off -set of Padget Avenue relative to houses north of 85th Street, the impact of north bound Padget Avenue traffic is likely to be limited to turning movements— only. ovements____only. Eliminating the proposed intersection only shifts the potential impact of thesetumirig _-_ movements to the Page Avenue and 85th Street intersection. The layout of the proposed preliminary plat is positive from a design and traffic movement standpoint. Eliminating the intersection of Padget Avenue and 85th Street will require substantial revisions to the preliminary plat that may impact properties at Page Avenue and 85th Street with the same concern, as well as impact proposed access points to Page Avenue from this parcel and others. As such, our office is recommending that the Padget Avenue/85th Street intersection be maintained. PC. Mayor and City Council Mike Robertson Elaine Beatty Andy MacArthur Larry Koshak Dennis Backes Tom Loukes 2 JUN.17.1999 1:47PM TO:OTSEGO NO. 3B7 P. 1/8 Review No. 2 ENGINEERING REVIEW 121 Hakanson Residential Subdivision Anderson for the City of Otsego Assoc., Inc. by Hakanson Anderson Associates, Inc, Submitted to: Mike Robertson, Administrator cc: Elaine Beatty, City Clerk, Dan Licht, City Planner Andy MacArthur, City Attorney Dennis Backes, Developer Jeff Shopek, Developer's Engineer Loucks & Associates, Inc. Reviewed by: Lawrence G. Koshak, PE, Craig J. Jochum, PE, Date: June 18, 1999 Proposed Development: Crimson Pond Street L,ocatlon of Property: NW % NW Y4 Section 27, T121, R23 and west half of the SW %4 and portions of NE % of Section 22, T121, R23,120,5 t Acres, South of 85th St. N.E. and West of future Page Ave. extension. Applicant: Backes Companies 7026 Brooklyn Boulevard Brooklyn Center, MN 55429 - -- - Developer: Backes Companies Owners of Record: Backes Companies Purpose: Single family residential development Jurisdictional Agencies: (but not limited to): City of Otsego, Wright County, U.S. Corp, of Engineers, Minnesota Department of Health Permits Required (put not limited to): NPDES 11 1ncMshareWtjnMpaMOTSEGo121 Wat2i 98RVW2.dac JUN.17.1999 1:48PM ► M;:M $N Ulm, M'17-14 NO. 387 P.2/8 Existing Conditions Plan of Crimson Ponds by Loucks & Associates, Inc. Preliminary Plat of Crimson Ponds, 517/99, by Loucks & Associates, Inc. Preliminary Grading & Erosion Control Plan of Crimson Ponds, 4/26/99, by Loucks & Associates, Inc. Preliminary Utility Plan of Crimson Pods, 4/26/99, by Loucks & Associates, Inc. Mitigation Plan of Crimson Ponds by Loucks & Associates, Inc. Stormwater Computations, 4/6199, by Loucks & Associates, Inc. City of Otsego Engineering Manual, March 1999 Trunk Stormwater Facilities Study for Portions of Lefebvre Watershed, March 1999 City of Otsego Zoning and Subdivision Ordinances, February 1991 National Wetland Inventory Map, 1991 ADDITIONA INFORMA ION AVAILABLE (6/16/99): Preliminary Plat of Crimson Ponds, 614/99, by Loucks & Associates, Inc. Preliminary Grading & Erosion Control Plan of Crimson Ponds, 5128/99, by Loucks & Associates, Inc. Preliminary Utility Plan of Crimson Ponds, 6/4199, by Loucks & Associates, Inc. Preliminary Geotechnical Exploration, Proposed Housing Subdivision 85th St. N.E. at Packard Avenue N.W., 2/6/99, by GME Consultants, Inc. Hydrology Report, 513199, by Loucks & Associates, Inc. EASEMENTSIRIGHT_ OF WAY 1. Drainage easements need to include the limits of all ponds and wetlands to the 100 - year flood elevation. COMMENT (6/16/99): The drainage easement needs to be adjusted on the east end of Pond A and the south perimeter of Pond C to contain the 100 -year flood elevation within the easement. The highwater elevation for the wetland in the Northeast corner needs to be established based on two 100 -year back to back storm events as discussed in Appendix C, Section PAGE 1 %%CIndyla haroWunldPOMOTSF-GO\21981ot2198RVW2.doc JUN. 17. 1999 1:48PM NO. 387 P. 3/8 5.E.8 of the Engineering Manual. Calculate the highwater elevation and label on grading plan. Revise easement if necessary. We recommend that the north end of Pond C be provided with a drainage easement. There is currently an easement line between Lots 6 and 29 of Block 5. 2. Show the radii on all right-of-way boundaries including cul-de-sacs. COMMENT (6/16/99): The radii have been added on all streets except 82"d St. Add radius on 82nd St. I. The proposed low floor elevation for each lot is tabulated on the plans, however, it is difficult to read many of the elevations. Please clarify. COMMENT (6/16/99): OK 2. Temporary Piezometers need to be installed to establish existing and anticipated high groundwater elevations. The anticipated high groundwater elevation shall be established by a certified geotechnical engineer. COMMENT (6116199): OK STREETS 1. Soil borings need to be performed for the site to verify street design. A soils report shall be submitted and certified by a geotechnical engineer. The report shall include a recommended pavement section for the development (see 21-6-2.13.11 and 21-8- 2.0). COMMENT (6116/99): OK 2. Curb radii need to be shown at all intersections and cul-de-sacs. It appears the curb radii from collector to local roadways does not meet 50' minimum. COMMENT (6116199): Item needs to be addressed on final plans. 3. For final review, roadway profiles are required showing street grades, sanitary storm sewer (size, type, slope and inverts), storm sewer (size, type, slope and inverts), and water (size, type and min. depth). (See page 6, Section I11.5.h of Engineering Manual). COMMENT (6/16/99): Item needs to be addressed on final plans. 4. For final review, roadway crass -sections are required showing right-of-way and easements. Cross culverts, if any, or catch basin leads should be shown to verify minimum cover. (See page 6, Section 111.5.i of Engineering Manual). COMMENT (6/16/99): Item needs to be addressed on final plans. 5. All horizontal and vertical alignment shall provide for not less than 30 mph design speed on local streets. (Appendix D, Section 4.00, Engineering Manual.) This requires a 300 foot minimum radius curve. Not all curves meet the minimum radius. PAGE 2 11Cindy�sh are\Mu nicipal\AOTSEGC)U 199Wt2199RVw2.doc JUN.17.1999 1:49PM NO. 3E37 P.4/8 We also recommend a minimum tangent of 50 feet between all horizontal reverse curves, COMMENT (6116199): OK 6. Add stormwater flow direction arrows and proposed street grades on the grading plan. COMMENT (6/16/99): OK SOIL AND EROSION CONTROL 1. Silt fence will be required to protect existing wetlands and adjacent property. Show the proposed location of silt fence and other erosion control features on the plans. COMMENT (6/16/99): Item needs to be addressed on final plans, 2. Silt fence detail does not meet the requirements of Standard Plate No. 501, COMMENT (6/16/99): Item needs to be addressed on final plans. 3. Show riprap on the grading plan for outlet pipes, COMMENT (6/16/99); Item needs to be addressed on final plans. 1. Site wetlands appear to have been delineated and are shown on the plans. A wetland delineation report must be submitted. COMMENT (6/16199): Report still needed. 2. The proposed development does impact site wetlands. A Wetland Replacement Plan must be submitted for the development in accordance with the Wetland Conservation Act. The reports shall include a discussion on sequencing. COMMENT (6/16/99): Report still needed, However, Lot 6 & 7, Block 3, Lot 72, Block 1 are basically being built over wetland entirely. We recommend these lots be eliminated and the area remain in wetland. 3. The Wetland Delineation Report and Replacement Plan shall be submitted to the City and Gary Elftmann from the U.S. Corp, of Engineers. A permit from the Corp. may be required. COMMENT (6/16/99): Submit Corps of Engineers comments when received. SURFACE WATER MANAGEMENT 1. The information submitted does not allow for a detailed review of the surface water management features for the proposed development. A number of items need to be resolved prior to finalizing the review, These items are as follows: a. Submit a Stormwater Drainage Report, which includes all of the information discussed in the City Policy on Stormwater Drainage. COMMENT (6/16/99): Item needs to be addressed with final submittal. PAGE 3 UClndylshare\MunlclpaMOTSEGO\2168\021 @8RVW2,doc JUN.17.1999 1:50PM N0.3e7 P.5i8 b. Submit storm sewer and inlet computations. COMMENT (6/16/99): item needs to be addressed with final submittal. C. Submit computations on street spread. COMMENT (6/16/99): item needs to be addressed with final submittal. d. See section 6.0 of the policy on Stormwater drainage for information that needs to be shown on the plans. COMMENT (6/16/99); Item needs to be addressed with final submittal. 2. 100 -year flood elevations need to be set for all backyard inlets. COMMENT (6116/99): There are two backyard drainage areas along 85a' St N.E. Establish the 100 -year flood elevations for these areas and revise easements If necessary. 3. A minimum curve number of 72 must be used for the 1/3 acre residential lots and a curve number of 100 for water surfaces, See table 1 of the City policy on Stormwater (March 1999). COMMENT (6116/99): OK 4. Maintenance access must be provided to all backyard pond areas. Minimum easement widths should be 20 feet and maximum slopes of 10%. Show access areas on plans. COMMENT (6/16/99): increase the easements between Lots 51152 and 61/62 of Block 1 to 20 feet for storm sewer maintenance and pond access. 5. Provide details on all outlet structures. COMMENT (6116/99): item needs to be addressed on final plans. 6. As discussed on page 4 of the Lefebvre Watershed Study, the normal elevations for wetlands shall be set based on the publication; "Stormwater and Wetlands: Planning and Evaluation Guidelines for addressing Potential Impacts of Urban Stormwater and Snow -Melt Runoff on Wetlands." Figure IV -6 of this publication indicates that the normal elevation should be set above the delineated wetland. According to the information provided, the normal elevation for wetlands in Pond E and G should be at or above 872.0. COMMENT (6/16199): The developer's engineer is currently monitoring the water levels In the site wetlands. The developer's englnesr will use Kjglhaug Environmental Services Company to set the normal water in site wetlands. No information on the proposed elevation has been received to date. 7. Submit water quality computations for the ponds on tots 33/34, 63/64, 10/11, 17/18 and 3/4. COMMENT (6/16/99): OK 8, Show low floor and ground elevations for existing structures which are adjacent to Pond E and the wetland in the northwest corner. PAGE 4 1%C I ndyls h e re1M u n Idpa MOTS E c3 o1219 B b t2198 RV W 2. d oc JUN. 17. 1999 1:50PN NO. 387 P. 6/8 COMMENT (6/16199); Information still needed on Davis property and south. 9. Consider directing the backyard drainage from lot 7 to the northeast and more of the backyard of Lot 23 to the south. COMMENT (6116/99): Item needs to be addressed on final plans. 10. A regional stormwater model has been developed for this area. The regional plan does have future off-site stormwater flows to wetland — Pond E. Upon final design of the outlet structures for the major drainage system, the regional model will be used to verify 100 -year flood elevations for wetland ponds E and G. COMMENT (6/16/99): Item needs to be addressed on final plans. 11. Consideration should be given to using the proposed NURP ponds to treat stormwater from the future Page Avenue extension. COMMENT (6/16/99): Item needs to be addressed on final plans. ADDITIONAL. SURFACE WATER MANAGEMENT 6/16/99 12. There are two existing culverts along 85th St. which have been surveyed by the developer's engineer. We recommend that the south end of the existing culvert located on the west end of the plat be abandoned. The proposed surface water management for Crimson Ponds should remain as it is proposed. The surface water runoff which is currently conveyed to a storm sewer system at 85th St. and Page Avenue will likely be conveyed to Pond C in the Crimson Ponds plat via a new storm sewer system along Page Ave. The existing system will then be abandoned. TRAFFIC/ACCESS ISSUE The three accesses to future Page Avenue appear to be an adequate distance apart, however the access from the Pheasant Ridge concept needs to also be considered for location. This review is not complete at this time. Assuming phasing of this project to start at the south and proceed north, a portion of Page Avenue will need to be constructed along with 78t" Street to enable an access to Crimson Ponds Phase 1. COMMENT (6/16/99); We strongly recommend that Phase 1 of the project begin at the south end of the plat and proceed north. If Phase 1 starts on the north end of the plat, access is proposed onto 85th Street. This street is in poor condition due to narrow travel width and deteriated bituminous surface west of Page Avenue. MSA Funding to Improve 851' Street is not expected to be available for at least 5 years. PAGE 5 \tiClndyWara\MunlolpalWOTSEG0121 Mot21 98RVW2.d0c JUN.17.1999 1:51PM 140.387 P.7/8 SANITARY SEWER COLLECTION SYSTEM In a review of the sanitary sewer layout provided, it was found that the trunk facilities to be constructed will serve future lift station to the north and west. The capacity required is approximately 1.2 cfs. That flow plus the Crimson Pond flow requires that a 12 -Inch sewer line be installed, The flatter grade of the 12" line benefits the developer in that the entire proposed development can be served by gravity. It benefits the City in that the capacity of future flows from developed areas can use the line. At this time the trunk benefit would be limited to oversizing of the pipe. Final review of this matter will be done at the time the sanitary sewer plans are completed. A section of the trunk sewer will need to be run in P6ge Avenue form the intersection with 78"' Street to the first access of Crimson Pond. COMMENT (6/16/99): Item needs to be addressed on final plans. WATER DISTRIBUTION SYSTEM Lateral benefit only will be realized with installation of watermain in the plat. However, a trunk watermain, perhaps a 10" or 12", needs to be looped either through this proposed plat, and/or in Page Ave. Trunk benefit would be based on oversizing only. Final review of this matter will be at the time of completion of the utility plan. COMMENT (6/16199); Item needs to be addressed on final plans. ENVIRONMENTAL 1. A review and statement related to environmental concerns is necessary. Is there any surface or buried waste within the boundaries of the property? Are there any other known environmental concerns with the site? COMMENT (6/16/99): Forward a copy of the letter from the current property owner. OTHER CONSIDERATIONS 1. Any existing utilities along 851�' Street N.E. need to be shown (see 21-6-2,5,5), COMMENT (6/16/99): OK 2. Benchmarks need to be shown on each sheet (see page 7 Section 1(1.14 of Engineering Manual). COMMENT (6/16/99): OK 3. Review Section III, page 6 of the engineering manual for requirements for City Standard Plans. COMMENT (6/16/99): Item needs to be addressed on final plans. 4. Review and complete the City's preliminary plat checklist. Revise plans to include all items on the checklist. COMMENT (6/16/99): The following Items are still needed on the plat: PAGE 6 WindylsharoWiunlolpaRAOT8E00121881ot21 g8RWV2.doc JUN. 17.1999 1:52PM NO -3e7 P.eie • Item 2A(2) Identify the boundary lines and comers In relation to know section, quarter section, or quarter -quarter sections. • Item 213(2) Identify existing zoning on all sides of the plat. • Item 213(5) Identify name and ownership along entire perimeter of plat. Item 28(9) Submit statement per Minnesota Statutes 11513.0 Subct S. • Item C(7) Show setback lines on plat. • Item C(8) Show the widths as indicated. 5. Provide written responses to these comments. COMMENT (6/16/99): Written responses have been provided to comments from Review #1. Additional responses will be required for Review #2. SUMMARY AND/OR RECOMMENDATION We recommend preliminary plat approval contingent on the following items being appropriately addressed: 1. Items #1 and #2 under EASEMENTSAIGHT OF WAY, 2. Item #2 under WETLANDS 3. Items #2 and #4 under SURFACE WATER MANAGEMENT. 4. Item #4 under OTHER CONSIDERATIONS, PAGE 7 \\Cindy\aharoW uniolpalW OTS H G o\2198\oti 19A RV W 2.doc Clo Ile V — t � tt I�IV 1, �: iSSiiiiiiii �:' r s . �� e ►ems i 7 li I '--ewe-- — a i1c II or—1 'C z e r - s -c— � z L - -E LL =T I \I =ON i i i I MW IL • C a sum q E ll� itjrl 11111�11111� i (?�� Itt a V �i (� g �i ' iiiiiiiiiIl ��;: f �! i i i i I MW IL • C a sum q E a eaaae 33i;� J=� 22:2: �dJ 131 �� n.:_ _r (� rYYYYYYYYYYYYYYYYY cilia:a .................. : u9au{9aafuffaaa i - I i2ii .0.0444.944 YYYYYriYYYYYYYYYY `� ,rj fad${{669 ff{{9966 \ ,'+_� a9ffliiT3;TTT225R i r Y4YYYYY YYYYYYYYYY9 F A�a:baa;a'ca��% t :::: .. .... {{fa{{{ $968195aa{s !sslasa saasasiassa f 13;;11; ilsl:sl!3�i G t ('�\` � i� YYYYYYYYYYYYYYYYYYY � 99939ii97fi I ` sem. � iiTaaTTlTfTl22T9!!t � ?"ssz5i 's"ss"s"s's.'s'si'si �J' YYYYYYYYYYY$YYYYYYY 2l::L.3:::a22rS.r o �................. 3^ �'--- Naaas======saaassssa r ii2. .zs�:a t Ui.T. -.44 c.� `. iCI I I:1I ucn�J 311 I : ij I etc o Jif#; - eaaae 33i;� J=� 22:2: �dJ 131 �� n.:_ _r (� rYYYYYYYYYYYYYYYYY cilia:a .................. : u9au{9aafuffaaa i - I i2ii .0.0444.944 YYYYYriYYYYYYYYYY `� ,rj fad${{669 ff{{9966 \ ,'+_� a9ffliiT3;TTT225R i r Y4YYYYY YYYYYYYYYY9 F A�a:baa;a'ca��% t :::: .. .... {{fa{{{ $968195aa{s !sslasa saasasiassa f 13;;11; ilsl:sl!3�i G t ('�\` � i� YYYYYYYYYYYYYYYYYYY � 99939ii97fi I ` sem. � iiTaaTTlTfTl22T9!!t � ?"ssz5i 's"ss"s"s's.'s'si'si �J' YYYYYYYYYYY$YYYYYYY 2l::L.3:::a22rS.r o �................. 3^ �'--- Naaas======saaassssa r ii2. .zs�:a t Ui.T. -.44 c.� `. iCI I I:1I ucn�J 311 I : ij I etc i wd A ILLMON � W .r , 1 liLLLLLW g— C ILLMON W .r Is .;:: fill �� 1:�-•, Vii: -�� 0.' ••!i at ii � � i11i OF 3:33=3 Q � j I it C :�• � i A 3 j� c ed�af. Yi ,r% �•-t{ C - j.-YYYYY=YYY =YY Tiitaataa j' i� f 3.� : , ata . V H MRS Hi %/* t • ts� ys; ii+riaaim+ii _ p —�--�-N- oat .3 .........s?��4 1155353523911115 is ss muffl."13's p _ fie ". �• Y.' ` Y .22222YYYYYYYYYYY ::=22370:=.3::::= ! - y �-r � � s si:ssisissisiiisi rel : sv • = 4 '.,..........11.. � �� \`•�`•\ � � 1fYYYYYYYY YlYYYYf 1:22:OAA:! :+3l3A3 .�t iL R3{7iltta sassass � II r J 77�S9S....:SSISSS '[7 •''� ' �� , � i` YYYYYYYYYYYYYYYYY — � iz13.!l�I��tl iii.'s's33i's='s3?333 V low- Oil H111 11111 111i !ii:iiiiliii HI.i 1 C avow 8 3 y x c ,�y q.•• ITI 4 Y t nino„ S E y ii �� Fvj . ! c ,�y q.•• ITI 4 Y t nino„ S E y Pie: RCA-CC.WPS 12 CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: 9. Council Items: Elaine Beatty, City Clerk/ June 23 1999 6:30PM ITEM NUMBER: ITEM DESCRIPTION 9.1. A. Consider Wright -Hennepin proposal concerning Water Service Billing B. Any Other Council Business BACKGROUND: 9.1. A. Mdse Robertson will be present to discuss Wright-Hennepin's proposal. See attached copy of letter dated 6/10/99 and proposal from Wright Hennepin Cooperative Electric Association. B. This is for any other Council Business that may be added. RECOMMENDATION: This is for Council discussion and any consideration for approval needed. Thanks, Elaine BOARD DIRECTORS • Alvin E. Heinz, Chairnarn Rogers, MN • Chris A. Lantto, Vice Chairman Annandale, NIN ile F. Jans, Secretary -Treasurer .Iffalo, MN • Timothy L. Young, Annandale, XfN 6/10/1999 %slim Wright -Hennepin Cooperative Electric Association A Touchstone Energy- Partner 0A PO Box 330' Rockford MN 55373-0330 1 �1 JWE�utMden�l�er� onticello, MN L,.•Howard L. Ellis,W, MN omas . Mach, Mapl Grove, MN u z, e Plain, MN Metro • (612) 477-3000 Toll Free • 1-800-943-2667 24 -Hour Fax • (612) 477-3054 Mike Robertson Administrator City of Otsego 8899 Nashua Avenue NE Elk River, MN 55330-7314 q1f,A Subject: Water Reading/Billing Proposal Mike: • Donald A. Lucas, Maple Grove, MN PRESIDENT & CEO • Mark F. Vogt, Annandale, MN Please find attached, Wright-Hennepin's proposal concerning water service billing for the City of Otsego. Our proposal encompasses residential meter reading, customer billing, cash collections, and delinquent account management. In our opinion, these are the prevalent services that would be of benefit to the City. Thanks for reviewing the proposal; we look forward in -turn to having a further discussion with you on this project. Regards, Bob Miller Key Account Representative The power of human connections City of Otsego Proposal Background Information Wright -Hennepin Cooperative Electric Association (WH) is an electric distribution cooperative, formed in 1937. Currently, W -H serves over 26,000 members in the counties of Wright, Hennepin, Steams, Meeker, Sherburne and Carver counties. The cooperative is consumer owned, and govemed by local citizens. Services other than electricity provided by WH include: Home Security, Security Response, Wireless & Land Line Communications, Electric Installation and Contracting, Pager, 24 hour Electric Dispatching, Internet, Appliance Warranty, and Surge Protection. This proposal concerns an additional service, where W -H would provide water reading/billing services to the City of Otsego. W -H's proposal is related to the City's current construction of a new wastewater treatment plant & potable water infrastructure, which will initially serve a 1,000 —1,400 home development. Otsego City administration projects that the development will be complete in five to ten years, assuming that 150-250 homes are built per year. The wastewater treatment is scheduled to be operational by the fall of 1999, and is sized to add future systems beyond the development at issue. W -H Services Proposed services which Wright -Hennepin would provide to the City for the water/sewer project include the following: • Meter Reading Billing Cash Collection Management of Delinquent Accounts 24 Hour Dispatching (Optional) Meter Reading Wright -Hennepin currently has the equipment and software, to accommodate meter reading of the water/sewer project. Wright -Hennepin would be responsible for physically collecting the meter data, provided that the City purchases & installs the Itron remote reading system (ERT) into the city's choice of water meter. Since the new homes will also be W -H customers, WH would also install the ERTs into their electric meters at the time of installation. W -H currently has handheld meter reading devices which have the capability of reading the ERTs by radio frequency, therefore the meter reader does not have to go onto the customer's property. Page 1 W -H's contracted meter reading service, RMR Services, Inc, would read the water meters simultaneously with the electric meters (under WH/RMR's current contract). Not only would this create efficiencies for both entities, it would also eliminate the redundancies created by two meter readers reading the same residence. The City of Otsego area meters are read the second week of the month or around the 10th of the month. RMR currently reads 36,000 of WH meters on a monthly basis. RMR Services would have the ability to install the ERTs into the city's choice of water meter. For further technical information, please contact Brent Anderson at RMR Services, Inc, 1228 South 7th St, Minneapolis, MN 55415. 612-376-7600. Billing W -H would be responsible for calculating the billing based on the meter data collected. WH would print and mail the statements. Proposed pricing includes paper, outer envelope, reply envelope and postage and management of the receivable. The water and sewer billing would be included as a separate line item on the customer's electric statement. WH would set the water and sewer billing up as a separate receivable. The water and sewer billing would be included on WH's statement, but displayed as a separate service. The customer would see the total of their water and sewer service as well as the total to be remitted for all services on the statement. See sample of statement (attached). The City of Otsego is current billed for electric and other services the third week of the month (approximately the 21 of each month). Payment is due the 8th of the following month unless the customer chooses the EZ Pay plan (ACH) which provides the customer with additional payment choices of the 1 s% 8"', ( , or the 15th of the following month. Cash Collection W -H would be responsible for collecting and posting all payments, and remitting payment to the city on a monthly or semi-monthly basis. W -H is flexible regarding timing and related arrangements. Delinquent Accounts W -H would be responsible for collection of delinquent accounts, through the City's standard disconnect period. WH's current software system has the capability of putting a reminder on the bill, and sending out disconnect notices etc. for individual services. W -H would send out the disconnect notice, but it would be the City's responsibility to physically disconnect the customer. Pricing includes reminder statement and disconnect notices, as well as coordination with the City for payment arrangements and disconnects. Page 2 24 Hour Dispatching (Optional) W -H provides 24 hour dispatching services. WH could provide the City the following dispatching services: • Around the clock personal response. • Disconnect and reconnect customer call handling. Please note that pricing for the above dispatch services are not included in this proposal, but could be added at the City's request. Proposed Pricinq W -H's proposes a monthly package fee for the City, to include the services of meter reading, billing, cash collections, and delinquent account management. Package cost would be per the following: Monthly Base Fee $200 Monthly Customer Fee $1.75 (per account) This proposal is valid for 60 days from date of issuance (6/10/1999). Upon acceptance, length of agreement shall be for a two-year period. Presented b Accepted by Representing: Wright -Hennepin Date 6Z—,F!z Page 3 Representing: City of Otsego Date vicera.�Ne�''w� ersrna � t.rraansaaea Account #: 123456789 CID#: 1234341 DOE, JOHN 1234 ANYWHERE ANYTOWN, MN 55333 Due Date: June 30, 1999 Amount Due: $100.00 Wright -Hennepin Statement Date: 05/05/99 Cooperative Electric Association Account #: 123456789 PO BOX 330 Total Amount Due: $100.00 Rockford MN 55373.0332 Billing Summary Previous Balance: $101.00 ayments Received: 4101.00 Balance Forward: $0.00 Total Electric: $50.00 Total Security: $10.00 Total Water: $40.00 Total Amount Due: $100.00 marketing message Wright -Hennepin Cooperative Electric Association PO BOX 330 Rockford MN 55373-0332 Electric Service 0113 111 - Usage Period 04-01.99 0, 05-01.94 -Sry Addr 1234 ANYWHERE 5TREET -s Meter d Pres. Rdg Pre.. Rag Multiplier Basic Service $ 8.25 12345678 Soo 0 1 Energy 500 kWh @ 0.081 $ 40.50 100 W Light 43 kwh $ 7.30 Power Cost Adl 543 kWh @ (0.0163) $ 8.85 Sales Tax @ 0.065 $ 3.06 Total for Electric $ 47.20 5rvA'ttdr 2234ANYWHERESTREET 54c7iSekl!` ,� �. a Monitor Charge $ 9.40 Sales Tax @ 0.065 $ 0.60 Total for Security Water Service Usage Period '04-01.99. to 05-01-99 Sry Addr 1234 ANYWHERE STREET Meter a Pres. Rdg Prev. Rog Multipiler Bask S-1.4 $ 0.00 87654321 10,000 0 1 Water Usage 10,000 gal @ 0.00376 $ 37.60 Sales Tax @ 0.065 $ 2.40 Total for Water $ 40.00 ki2 CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: 9 COL`�CIL. ITENIS: Elaine Beatty-, Citi- Clerk June 23,1999 6:30PM ITE -NI N-UNIBER: ITEM DESCRIPTIO`: 9.2. tilike Robertson, City Administrator -Update: A. Wastewater Treatment Plant Operator Draft RFP BACKGROUND: A. dike Robertson will be here to explain this and answer questions. This item was continued from June 14, 1999 Agenda. Copies of that information are attached. REC0NLNF-Eti-DATION: This is for Council consideration and approval needed. Thanks, Elaine CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: 9 COUNCIL ITEMS: DEPART-MENT PREPARED BY: Elaine Beatty, Ciy Clerk' IfEETLNG DATE: ung 1, 1999 6:30PM ITEM NUMBER: ITEM DESCRIPTION: 9.2. Nlike Robertson, City Administrator -Update: A. Wastewater Treatment Plant Operator Draft RFP BACKGROUND: A. bike Robertson rill be here to explain this and answer questions. RECONLMENDATION: This is for Council consideration and approval needed. Thanks, Elaine MEMO Date: June 10, 1999 To: Mayor & Council From: City Administrator Mike Robertson Re: Wastewater Treatment Plant Operator Request for Proposals I have enclosed a copy of a draft of a Request for Proposals (RFP). This will be advertised and mailed to companies who have indicated an interest in serving as Otsego's Wastewater Treatment Plant operator. The RFP is a generic RFP that has been used by several communities. I got a copy from St. Michael and made some minor modifications to it. Council should review the RFP and let me know if there are any areas that they would like changed. At this point in time we have received calls from three companies that are experienced in operating wastewater treatment plants on a contract basis. I hope that I will be able to locate more companies at the League of Minnesota Cities conference. The three companies that have said they will bid are Professional Services Group (PSG), America's dater Services, and PeopleService, Inc. Request Qualifications and Price Proposal for the Operation, Maintenance and Management of the WASTEWATER TREATMENT PLANT for the City of Otsego, Minnesota JUNE, 1999 TABLE OF CONTENTS I. GENERAL BACKGROUND ....................... 1 H. PRE -PROPOSAL CONFERENCE AND FACILITY EVALUATIONS ................................. 1 M. CONTRACTOR INFORMATION .................. 2 1V. REQUIRED STANDARDS ........................ 3 V. EQUIPMENT OWNED BY THE CITY ............... 3 VI. PROJECT PURPOSE AND OBJECTIVE ............. 4 VII. SUBMITTAL FORMAT AND CONTENT ............ 5 VIII. SCHEDULE OF EVENTS .......................... 9 IX. SCORING OF SUBMITTALS ....................... 10 X. EXCLUSIONS .................................... 13 XI. NEGOTIATIONS WITH HIGHEST SCORING FIRM ... 14 The City of Otsego is requesting Statements of Qualifications and Price Proposals (SOQ/PP) from firms interested in providing operations, maintenance and management services to the City's wastwater treatment plant. The City expects the SOQ/PP to address all activities of the wastewater treatment plant. It is understood that the SOQ/PP and the innovative approaches, guarantees and experience demonstrated therein shall be the general basis for selection of a firm to provide these professional services. The City expects to select the highest scoring firm based on a structured point scoring evaluation of first, the Statement of Qualifications (SOQ) and then second, the Price Proposal. The scoring evaluation (Section VIII) shall consider the innovative approaches, ability to make financial and technical guarantees, experience, technical expertise and price of services of each competing firm. After the City has selected the highest scoring firm, the City will immediately begin negotiations. Should the negotiations fail to result in an executed agreement, the City may elect to terminate negotiations with the first -ranked firm, begin negotiations with the second - ranked firm, and so on, or cancel the process. 1 ':•'•I IKKIXII► 1211 I a 0 Ira OLVAR R�•► ***** If the City Council wants to advertise for proposals soon, there obviously would not be much of a facility to tour and we would skip this part of the RFP. ********** The City will conduct a pre -proposal conference and tour of the facilities on to begin at a.m./p.m. at Otsego City Hall, located at 8899 Nashua Avenue NE, Otsego, Minnesota. Attendance at the pre -proposal conference and tour is mandatory. The purpose of the pre -proposal meeting is to answer questions regarding the Request for Qualifications and Price Proposals (RFQ/PP). All contractors interested in submitting an SOQ/PP should contact City Administrator Mike Robertson by no later than to indicate their intent to attend the pre -proposal conference. Fach interested contractor should ensure that they meet or exceed the Required Standards set forth in Section IIT of this document_ To ensure that each firm has sufficient information to submit a proposal, the City will make available on the day of the tour construction plans and specifications, design reports, NPDES compliance reports and shop drawings, operating budgets and other pertinent data. At the time of the tour, each firm will have an opportunity to schedule a maximum of three consecutive eight-hour days for an independent evaluation of the facilities in order to familiarize themselves with the current operation and maintenance practices and to research additional records that will be made available at the time of the individual facility evaluations. Arrangements for the inspection and/or copying of documents shall be coordinated through the City Administrator and a fee of $.10 a page will be charged for photocopies of any documents not already printed for distribution. All questions concerning the RFQ/PP shall be submitted in writing to: City Administrator Mike Robertson Otsego City Hall 8899 Nashua Avenue NE Otsego, MN 55330 Contact with other City officials is prohibited and can be considered as grounds for disqualification from the selection process. Questions must be received at least 10 days prior to the SOQ/PP due date. Copies of all questions and answers, and any addenda to supplement the RFQ/PP, will be sent to each firm no later than three days prior to the SOQ/PP due date. Only formal written responses to properly submitted questions will be binding. H "90 1 METIN 013:4•; • Each selected Contractor must respond to each of the following requests/questions in a clear and comprehensive manner. Failure to do so may result is disqualification. Provide the full name, tax identification number and main office address of the entity (hereafter referred to as the "Contractor") which would ultimately enter into a contract with the City. 2. Identify when the Contractor was organized and, if a corporation, where incorporated and how many years engaged in providing Contract Operations Services under that name. 3. Provide a listing of all full-service contract operations, maintenance and - -_-----____.-- -. -- - .__ _-management contracts -which the eonftctor has currently,`ircludirig_fhe�: gross annual amount of each contract; the contract start date; the anticipated completion date; the name, address, contact person and telephone number of the owner; and the size and type of facility. Full service operations, maintenance and management contract means, at a minimum, providing all labor and management, paying all O & M expenses, guaranteeing a maximum cost, and guaranteeing regulatory agency compliance. 4. Does any councilman or other officer, employee, or person who is payable in whole or in part from the City have any direct or indirect personal interest in the Contractor? If so, describe the circumstances. 5. Identify the firms that you intend to subcontract or otherwise use to perform work on this project. 6. Contractor must furnish a copy of a fully executed contract with another community for services similar to those requested by the City. This section establishes certain standards of experience and financial capability that the City requires for a Contractor to be considered qualified. The City, in its sole discretion, will decide if a Contractor meets the standards. Scoring of the qualified toms will be as described in Section IX. Contractor must have been in business of providing contract operations, maintenance and management of water and wastewater treatment facilities for at least five (5) years. 2. Contractor must operate at least five (5) or more water and/or wastewater treatment facilities of similar or larger size to the Otsego facility. 3. Contractor must furnish liability and property damage insurance of not less than $10,000,000 combined single limits for bodily and/or property damage. Enclose an insurance certificate. 5. Contractor must demonstrate the ability to provide a performance bond of at least $5,000,000. • 1' • 1 1 .I All land, buildings, improvements and permanent equipment which are presently in place, or new facilities which will be added by the construction projects, shall remain or become the property of the City. Should the contractor fund 'the implementation of any faciffty improvement at the request and approval of the City, such facilities shall become the City's after the completion of a repayment schedule. All existing facilities shall be made available to the contractor for his use in providing the services under the contract. Expendable supplies and spare parts which are on hand on the day and date of the contract execution shall be inventoried. The Contractor shall have access to these materials during the duration on the contract, but shall maintain the inventory such that at the end of the contract period, the City inventories shall be replenished for materials used or substituted, with City approval, during the term of the contract. The Contractor shall maintain all land, buildings, improvements, vehicles and permanent equipment that are within the scope of the agreement. Equipment and vehicle maintenance shall be performed by the Contractor in accordance with manufacturer's recommendations or good industry practices and the Contractor will be required to provide proof thereof to the satisfaction of the City. Separately, the City and the Contractor may arrange for the contractor to purchase, maintain, and replace the rolling stock and transportable equipment currently in use by the City. Such purchase prices shall have buy-back provisions to enable the City, upon contract completion or early termination, to buy back the same or similar inventory, if such equipment is still in use or being used under conditions similar to those under which the Contractor purchased same from the City. •;• ;•• :121i •: rLi The purpose of this project is to operate, maintain and manage the City's wastewater treatment facilities more cost effectively and more cost efficiently. The objective is to save the City money, operate in compliance, improve maintenance, consider innovations to lower the capital and operating costs of any and all aspects of utility operations and continue local purchases of supplies, consumable and services, wherever practical. The submittal document for complying with the SOQ/PP is suggested to contain at least the chapters that follow: Executive Summary Required Standards/Contractor Information Qualifications/Related Experience Operating Plan Business Considerations Draft 'Coiitract - The SOQ shall identify any and all non -monetary terms and conditions associated with the services included in the SOQ. After selection of the highest scoring firm, the scope of work shall be clarified, any changes shall be negotiated along with the Agreement, beginning with the Draft Contract submitted in the SOQ. Following are further discussions relative to the content of each of the suggested chapters of the SOQ. Fxecutive Inform ation/Required Standard.-, -- Responses to questions contained in Sections III and IV of this Request. Qualifications/Related Ex ri n -- A brief discussion of contractor's experience in similar type and size of projects. 012crating Plan -- The Operating Plan should discuss the following topics: a. Provide a listing of the ski is individuals assigned to the Management Team and to Technical Support that the Contractor will assign to this contract during the transition and operation, and provide the background and experience of those individuals. b. Provide a detailed staffing plan indicating the type and quantity of the various positions the contractor feels is necessary to provide the services requested. C. Discuss the transition procedure and the impact of any surplus employees and the Contractor's plan to accommodate them. d. Provide an operating plan for the facilities and other responsibilities that indicate how the Contractor will provide operations, maintenance and management services. e. Provide description of any deficiencies observed in operations and maintenance of the City's facilities. Business Approach oach -- Discuss contractor's position on such business issues as assumption of risk, future years' price adjustments, capital versus repair issues and guarantees. Draft Contract - Include a draft contract for City review. The City is requesting a Draft Contract as a part of the SOQ/PP. However, a summary of some of the general provisions the City will expect to see in any final contract -art as follows: Provision of liability without any dollar limit for the payment of fines and/or civil penalties levied against the Contractor and/or the City by any regulatory agency having jurisdiction, as a result of failure to comply with the terms and conditions of any duly authorized permit, court order, administrative order, law, statute, ordinance, etc. for reasons resulting from the Contractor's negligence during the period of the contract. Provisions for compliance with State of Minnesota and other EPA & OSHA regulations regarding treatment and reporting requirements and a process control system which furnishes complete and accurate records. System should be capable of readily providing historical data and trends. Provision of indemnification and hold harmless of the City and its agents, officers, assigns, employees, etc. from any loss or liability for claims, damages, lawsuits for reasons resulting from the Contractor's negligence during the period of the contract. Such indemnification shall include indirect, consequential and pollution damages. Provision of comprehensive liability insurance policies naming the City as additional insured for bodily injury and/or property damage in an amount of not less than ten million dollars ($10,000,000); a certificate of such insurance shall be submitted to the City upon signing of the Contract. Provision of a fixed dollar value for Repair and Replacement such that the contractor's obligations will be explicit as to maintenance of the City's equipment and facilities. Such Repair and Replacement limit will not include Contractor's on- site labor. A specific method of decision making concerning the use of funds for repair and replacement should be outlined. Provision that the Contractor shall be responsible for maintaining all manufacturer's warranties on new equipment purchased by the City and assist the City in enforcing existing equipment warranties and guarantees. Provision that the Contractor shall provide a sufficient number of certified qualified personnel, including management, administrative, operational, technical, laboratory and clerical, who meet relevant State of Minnesota requirements and certifications regarding wastewater treatment operations and maintain the facility. Provision for termination of the contract if performance is unsatisfactory. CITY OF OTSEGO INVESTMENT SCHEDULE YEAR ENDED DECEMBER 31, 1999 Investment PurchaseMaturit Balance 1999 1999 Balance Type Date Date 12/31/1998 Purchases Sales 5/31/1999 Lasalle CD -EJ 7/14/1995 12/2/2002 $22,176.00 $ 22,176.00 MBNA -CD -SB 7/18/1995 5/10/1999 51,274.17 51,274.17 - FNMA -SB 7/10/1996 5/21/2003 50,291.34 50,291.34 - FNMA -SB 3/25/1997 11/10/2005 65,330.59 65,330.59 CD -Bk of ER 12/31/1996 12/31/1998 211,228.96 211,228.96 CD -Bank of E 7/8/1998 7/8/1999 100,000.00 100,000.00 CD -Bank of E 7/8/1998 7/8/1999 100,000.00 100,000.00 CD -Bank of E 7/8/1998 7/8/1999 200,000.00 200,000.00 CD -Bank of E 12/3/1998 12/3/1999 150,000.00 150,000.00 CD -Bank of EF 12/3/1998 12/3/1999 150,000.00 150,000.00 CD -Bank of EF 12/3/1998 12/3/1999 150,000.00 150,000.00 Totals 800,301.06 450,000.00 101,565.51 $1,148,735.55 PLUS EDWARD JONES FUNDS 52,623.44 PLUS SMITH BARNEY FUNDS 119,869.92 PLUS JURAN & MOODY FUNDS-CD'S - PLUS JURAN & MOODY FUNDS -COMMERCIAL PAPER 3,000,703.84 PLUS JURAN & MOODY FUNDS -MONEY MARKET 213,759.04 TOTAL $ 4,535,691.79 March Cash and Investments Consists of: Checking $ 6,833.60 Money Market Savings -Bank of Elk River 3,112.46 Investments Scheduled Above 4,535,691.79 Total $ 4,545,637.85 SB -Smith Barney EJ -Edward Jones 2/ T4s d� M�� 31 Kash Balances .- . ;E•' — - IVII lY•+: X11 ..: 1 ♦ ... 1V and Ba1Sht Current c,ul�7u ,O?4. 11 __ Dil IL;LC.� .r..... .. i'.. 'A% 3 :-,!VE F. N S JJ,Vl.%.VV 4,1Y, 149.4 4, 44 d, r.. .v .7r'lrf+r•L 1'i ITV .J IV.Jv LI• �tn 1� Qom.^ (' '�TT•C^ G ,A:, RE:.' A ili.:1.S P.1-� 2Y1 101Q0 fA' I,:IN & +'C: Nr1'•; iN�ity:6.l,. A ,JA .LY ...,..: .... ... • fir:• :',IND 2 1: 1010 CASH & .1.y. IN 4 Lt•YENIJ ... -F-wr ... ... {, .._ --. _... _Vr ..1... .`-.... i all._ �'lr.l J _,^r. ...1Y • :It:.. f. 111._ •TC Tn!:- 2:'�-•C12"!0 .M:4 J .!'• �.-1\=:` „ 0. :0 L..V :V, V -.C_ +.. .., r.... _. ...i1i _ .. • ..• .I�J.I i .lt rv. rJ Y.LY r... :,.-...r Vmf1 RL. L.'s. •r CiLA . l.67.6 lit •VN • lY• b, 1 S !NVB11L1lI3 V.4'V v.VY ♦VT�j '. �^-J PARK TREE =VIN;: 20-10,100 CASH S INVESTMENTS CI.UV a.0, C ry " LN -AL JE I +Ctt+i'.r 3' 1 •J.LL CAS; d INVESTMENTS 1iicE5Tu J.LY zl J7, 3JJ.33 ...r V. r_.. .r.+ .._ r !!!50 ... 1. .. .�T.rJ _ •. V + ... J• ...L JAS+i�t{l JJar av1i1Q ..ASX Q all VES 11icNtS '�1... 1t ,. a:. 1.. 17J,�. r.l..•v ii.. '?1L .. _Y.•. L'J1!. i\:v 4Yi. :L. 'Y .f'1.7 i. s •1 .r 11I L.N.J V.YL V..IY .v, .;JA ILU.Jihu'.11VI! Y.. •vl J Jl. 1 L..y t. tl .Y it.v'J 17,oil .rr - LATESHED PRI—Y l FUND 404-:vlvO CfiSF; & INVE5TINI NTS .0v O.VV 63,0"•,.S4 StAtiC VIEW 1996 PROJECT 411-,QiCQ CASH & INVESTMENTS 0.00 C. 1 55,052.69 F - 111 EJTME ..iL .. 1LiviJ 1 1 '.AS, INIV .M_.- 1 �L.'Ii1L.li1� L.J. ., +11 .,1�1. _v ^, 1C ._.. .,rLV. �ws 1i@4C:u'VE" it nlCt Q J A.".K 41J- Jl'V LAM & 11•t✓1:U'!SJ ,1,1,1,1:. 139,195—'s - GAiER fJND 601-10140 CASH & IN:VESTNENT Q.CIQ 22.39 22,533.34 " "6VELuPMENT ESCROWS OFUND ,Q1-1Q1DQ fASd & INVESTMENTS 1,000.04 3,585.41 .118 .-cc. . •...... r... .� 1JItL :wr ..:�Y .fi.i Q i:ti �...1:-l.a.• �5.VJ --------- ---------- ------------ IL;LC.� .r..... .. i'.. 'A% 3 :-,!VE F. N S JJ,Vl.%.VV 4,1Y, 149.4 4, 44 d, r.. .v