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07-09-01 CCDR,4FT May 23, 2001 Members of the City Council City of Otsego, Minnesota We have audited the general purpose financial statements of the City of Otsego for the year ended December 31, 2000 and have issued our report thereon dated May 23, 2001. Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Generally Accepted Auditing Standards in the United States and Government Auditing Standards As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with generally accepted accounting principles in the United States. Because of the concept of reasonable ssurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud or other illegal acts may exist and not be detected by us. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. However, we noted certain matters involving internal control 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 internal control 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. A material weakness is a reportable 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 errors or irregularities 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 internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be a material weakness, as defined above. However, we noted the following reportable condition that we believe is not a material weakness. Segregation of Duties 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 condition. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tsts of compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not provide an opinion on compliance with such provisions. We noted no instances of noncompliance. City of Otsego May 23, 2001 Page Two Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 to the general purpose financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2000. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which - under professional standards - we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the general purpose financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Significant Audit Adjustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the general purpose financial statements that, in our judgment, may not have been detected except through our auditing procedures. We proposed no material audit adjustments. Disagreements with Management or purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to ur satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the general purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's general purpose financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. Other Matters The following are items that came to our attention during the audit that we feel should be reviewed. Financial Position and Results of Operations General Fund The 2000 operations are summarized as follows: Revenue Expenditures Excess of Revenue Over Expenditures Other Financing Sources (Uses) Operating transfers in Operating transfers out Excess (Deficiency) of Revenue and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance, January 1 Residual Equity Transfer Out Fund Balance, December 31 City of Otsego May 23, 2001 Page Three The fund balance decreased $88,300 to finish at $712,418. The decrease related mainly to an equity transfer to the Capital Equipment Fund. Actual revenue was $338,874 above budget and expenditures were $106,538 above budget. The largest item of variance on the revenue side was non -business license and permits. This item was $207,780 above budges and made up 61% of the total revenue variance. The largest expenditure variance on the expenditure side was also development related. The building inspection line item was $102,367 over budget and represented 96% of the total expenditure variance. The City should maintain reserves at a level sufficient to provide working capital until major revenue sources are received in July. The level needed equates to about 40% to 50% of planned expenditures. The City's current fund balance equates to 48% of the 2000 budget and 34% of 2000 actual expenditures and transfers. The fund balance is adequate. The following table summarizes fund balance in relation to expenditures for the previous five years. Variance - Fund Favorable Budget Actual (Unfavorable) $ 1,432,568 $ 1,771,442 $ 338,874 1,322,493 1.429,031 (106,538) 110,075 342,411 232,336 - 56,313 56,313 (150,575) (337,324) (186,749) $ (40.500) 61,400 $ 101.900 43 800,718 367,688 1,051,457 (149,700) $ 712.418 The fund balance decreased $88,300 to finish at $712,418. The decrease related mainly to an equity transfer to the Capital Equipment Fund. Actual revenue was $338,874 above budget and expenditures were $106,538 above budget. The largest item of variance on the revenue side was non -business license and permits. This item was $207,780 above budges and made up 61% of the total revenue variance. The largest expenditure variance on the expenditure side was also development related. The building inspection line item was $102,367 over budget and represented 96% of the total expenditure variance. The City should maintain reserves at a level sufficient to provide working capital until major revenue sources are received in July. The level needed equates to about 40% to 50% of planned expenditures. The City's current fund balance equates to 48% of the 2000 budget and 34% of 2000 actual expenditures and transfers. The fund balance is adequate. The following table summarizes fund balance in relation to expenditures for the previous five years. Budgeted Fund Fund Expenditures/ Balance Balance Transfers as a Percent 2000 $ 712,418 $ 1,473,068 48% 1999 800,718 1,281,422 62 1998 587,904 1,246,052 47 1997 504,884 1,173,610 43 1996 367,688 1,051,457 35 City of Otsego May 23, 2001 Page Four An adequate fund balance is necessary for the following reasons: Purposes and Benefits of a Fund Balance • Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the General Fund expenditures. • The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid and property tax credit formulas. State imposed levy limits have also affected some cities. An adequate fund balance will provide a temporary buffer against those aid adjustments and levy limits. • Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay replacement, lawsuits and other items. An adequate fiord balance will provide the financing needed for such expenditures. • The City's bond rating is affected by its reserves and trends in maintaining those reserves. An adequate fiord balance will help the City maintain or improve its bond rating. City of Otsego May 23, 2001 Page Fiva A more detailed comparison of General Fund revenue follows: 2000 Revenue Misc Transfers In Interest 1.68% 3.08% 2.93% Charges for Services 4.21% Intergovernmental 20.59% License and Permits 20.86% Property Taxes 46.65% Percent Increase Revenue Source 2000 of Total 1999 (Decrease) From 1999 Property Taxes Licenses and Permits $ 852,667 46.65% $ 807,753 $ 44,914 Intergovernmental 381,205 376,257 20.86 20.59 178,495 365,074 202,710 11,183 Charges for Services Interest 77,020 4.21 40,668 36,352 Miscellaneous 53,509 2.93 53,509 Transfers In 30,784 1.68 73,091 (42,307) 56.313 3.08 - 56.313 Total Revenue 5 1.827.75 199M% $ 1.465.081 $ 362.674 2000 Revenue Misc Transfers In Interest 1.68% 3.08% 2.93% Charges for Services 4.21% Intergovernmental 20.59% License and Permits 20.86% Property Taxes 46.65% A more detailed comparison of General Fund expenditures follows: Expenditure Programs General Government Public Safety Public Works Sanitation Culture and Recreation Capital Outlay Debt Service Transfers Out Total Expenditures Percent of 2000 Total $ 564,219 354,538 371,499 39,321 35,412 37,567 26,475 337,324 2000 Expenditures Debt Service Capital Outlay 1.50% Culture and Recreation 2'13% 2.00% Sanitation 2.23% Public Works 21.03% Transfers Out 19.10% City of Otsego May 23, 2001 Page Six Increase (Decrease) 1999 From 1999 31.94% $ 509,821 $ 54,398 20.07 219,356 135,182 21.03 247,792 123,707 2.23 31,718 7,603 2.00 36,071 (659) 2.13 17,909 19,658 1.50 - 26,475 19.10 189.600 147,724 100.00% $ 1.252.267 $ 514.088 Public Safety 20.07% General Government 31.94% City of Otsego May 23, 2001 Page Seven Special Revenue Funds The following table shows the special revenue funds, their fund balances for the last two years and the change: During 2000, the Fire District fund from 1999 was split into the four districts and the activity is accounted for separately. Debt Service Fund The Debt Service Funds are used to account for the revenue received for the payment of bond principal and interest. "� The following is a recap of the cash, total assets and bonds outstanding for each issue of the City. Fund Balance Increase Bonds 12/31/00 12/31/99 (Decrease) Elk River Fire District $ 110,151 $ 95,517 $ 14,634 Albertville Fire District 10,950 15,472 (4,522) Rogers Fire District 1,670 6,854 (5,184) Monticello Fire District (1,542) (1,069) (473) Park Development 635,382 117,148 518,234 Self Funding Insurance 22,472 19,852 2,620 Capital Equipment 57,233 108,549 (51,316) Park and Recreation 2,345 2,345 Park Shelter (15,855) 5,375 (21,230) Park Tree 133 133 - Total $ 822939. $ 370,176 $ 452 763 During 2000, the Fire District fund from 1999 was split into the four districts and the activity is accounted for separately. Debt Service Fund The Debt Service Funds are used to account for the revenue received for the payment of bond principal and interest. "� The following is a recap of the cash, total assets and bonds outstanding for each issue of the City. Total $ 3.569.034 $ 4.267.096 9.130.000 Cash Total Bonds Fund Balance Assets Outstanding Maturity G.O. Improvement Bonds 1991 $ 86,663 $ 96,393 $ 75,000 2003 G.O. Bonds of 1996 261,548 477,128 440,000 2007 G.O. Water and Sewer Bonds of 1998 and 1999A 2,897,870 2,923,165 6,985,000 2020 G.O. Improvement Bonds of 1999B 322,953 770,410 1,630.000 2009 Total $ 3.569.034 $ 4.267.096 9.130.000 Capital Projects Funds The following summarizes each fund and their fund balances for the previous two years: Municipal Building MSA Construction Island View No. Mississippi Watershed Project Lefebve Watershed Project 1998 Odean Project Revolving Capital Improvements Water and Sewer Construction 1999 Overlay 78`h Street Sewer and Water 78`s Street Construction Page Avenue Street Construction Page Avenue Sewer and Water 1999 Equipment Certificates 88th Street Improvements Total City of Otsego May 23, 2001 Page Eight Fund Balance Increase 12/31/00 12/31/99 (Decrease) $ 163,546 $ 156,335 $ 7,211 3,352 30,075 (26,723) - 58,870 (58,870) (96,954) (35,223) (61,731) 35,459 183,150 (147,691) (284,518) (403,948) 119,430 386,764 269,787 116,977 241,626 844,595 (602,969) 598,873 995,111 (396,238) (371,348) (137,038) (234,310) (334,146) (168,561) (165,585) (52,628.) (109) (52,519) (221) - (221) - (1,545) 1,545 (123,568) - (123,568) The City should review the status of each fund annually to plan funding sources for deficits and to determine if projects have been completed. If projects are completed the associated capital project fund needs to be closed. Enterprise Funds Enterprise funds account for the business type activities of the City which are the water and sewer funds. The utility operations are reported as separate funds for the first time in 2000. Water Fund The operations of the water fund are summarized below. Charges for services Operating expense Operating loss Non operating expense Net loss Cash balance Bonds payable Percent 2000 of Total $ 57,817 100.0 % (84,080) (145.4) (26,263) (45.4) (6,340) 11.0) $ 99.000 Depreciation expense will increase significantly in the next few years as the costs of the system are now starting to be depreciated. It will be very important to monitor the rates in relation to the cash flow and planned capital needs of the fund. 'The City needs to build some if not all of the costs of depreciation into the rates. City of Otsego May 23, 2001 Page Nine Sewer Fund 4, As mentioned previously, 2000 is the first year that sewer fund operations have been presented in the financial statements. The results of operations will be distorted as some initial costs are reflected. Charges for services Operating expense Net loss Cash balance Percent 2000 of Revenue S 4,327 100.0 % (48,601) (1,123.2) (44.274)2( )% i Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments GASB Statement No. 34 is the result of an almost decade-long effort by GASB to reexamine the financial reporting model for state and local governments. The most notable change is the presentation of a set of highly aggregated, "full accrual" financial statements. At the same time, however, the Statement retains many familiar features of current governmental financial reporting, in particular fund -based financial statements. State and local governmental financial statement preparers and auditors will need to comprehend and implement a vast number of changes in accounting and financial reporting. They will have to explain those changes to persons who are unfamiliar with the particulars of accounting, much less the unique area of state and local governmental accounting. The following are some specific areas that need to be addressed with the implementation of this new statement: Timeline IV GASB Statement No. 34 is effective in three phases based on the total annual revenues of the primary government's governmental and proprietary funds, although earlier application is encouraged. The City is considered to be phase 3. Therefore, the City is required to implement GASB Statement No. 34 for the calendar year ending 2004. Management's Discussion and Analysis (MD&A) MD&A gives an objective and easily readable analysis of a government's financial activities based on currently known facts, decisions, or conditions. It presents short- and long-term analyses of the government's activities, compares current -year results with those of the prior year, and discusses the positive and negative aspects of that comparison. Government -wide Financial Statements The government -wide financial statements are (1) a statement of net assets and (2) a statement of activities. The statement of net assets presents the government's financial position at a point in time (like a balance sheet does); the statement of activities presents its activities during a period (like an operating statement does). These statements present highly aggregated information for the overall government; they do not display individual funds or fund types. They also present financial information in separate rows and columns for the (1) primary government's aggregate governmental activities, (2) primary government's aggregate business -type activities, (3) total primary government, and (4) discretely presented component units. City of Otsego May 23, 2001 Page Ten Capital Assets Capital assets are tangible and intangible assets that are used in operations that have initial useful lives longer than one year. They include land and improvements, easements, buildings and improvements, equipment, and works of art and historical treasures. Capital assets also include infrastructure assets — normally stationary capital assets that can be preserved for significantly greater number of years than most capital assets. Infrastructure assets include roads, bridges and tunnels; water, sewer and drainage systems; dams; lighting systems; and buildings that are an ancillary part of a network of infrastructure assets. Capital assets are reported in the statement of net assets at historical cost (or estimated fair value, if donated) and net of accumulated depreciation. They are depreciated in the statement of activities over their estimated useful lives. Infrastructure Assets GASB Statement No. 34 applies prospectively to all general infrastructure assets beginning at the effective dates of the Statement (or earlier, if the statement is implemented earlier). Governments are also encouraged to apply the Statement retroactively to all existing major general infrastructure assets at that time. However, phase 1,2 governments need not retroactively report those assets until calendar year 2006, 2007 — four years after their required implementation of Statement No. 34. Phase 3 governments are encouraged but not required to report major general infrastructure assets retroactively. If there are inadequate records of the actual historical cost of existing general infrastructure assets, governments can estimate historical cost. They also may limit retroactive application to only those major general infrastructure assets that were acquired or significantly reconstructed, or that received significant improvements, in fiscal years ending after June 30, 1980. The above gives you some general information on GASB Statement No. 34 implementation. We intend to educate and work with all of our clients in developing a plan to implement this new statement. As a result of implementing this statement, there will no doubt be additional fees for our services. These expected increases will most likely result from additional time spent in the areas of (1) training, (2) account structure modifications to provide information necessary to prepare financial statements, (3) accounting for fixed assets, infrastructure assets and related depreciation, and (4) financial statement preparation. The more that the City staff can do in the areas of fixed asset accounting and proper account structure will help in reducing these costs. We will help you as much as possible to accomplish this. This report is intended solely for the use of management and Council. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. May 23, 2001 Minneapolis, Minnesota DRAFT ABDO, EICK & MEYERS, LLP Certified Public Accountants DRAFT CITY OF OTSEGO OTSEGO, MINNESOTA ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 CITY OF OTSEGO, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 2000 I. INTRODUCTORY SECTION City Council and Officials IL FINANCIAL SECTION Page No. Independent Auditors' Report 2 General Purpose Financial Statements 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 (Deficit) 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 35-38 Combining Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit) 39-42 Enterprise Funds Combining Balance Sheet 43 Combining Statement of Revenue, Expenses and Changes in Retained Earnings 44 Combining Statement of Cash Flows 45 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 46-47 Independent Auditors' Report on Legal Compliance 48 INTRODUCTORY SECTION CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 2000 CITY OF OTSEGO, MINNESOTA CITY COUNCIL AND OFFICIALS DECEMBER 31, 2000 Term Expires Larry Fournier Mayor 2000 Virginia Wendel Council Member 2000 Richard Nichols Council Member 2000 Vern Heidner Council Member 2002 Suzanne Ackerman Council Member 2002 Mike Robertson City Administrator Judy Hudson Deputy Clerk/Treasurer Elaine Beatty City Clerk/Zoning Administrator -1- FINANCIAL SECTION CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 2000 INDEPENDENT AUDITORS' 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, 2000 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 in the United States 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 ,ibout whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test asis, 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, 2000 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 the United States. In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2001 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. That report is an integral part of an audit conducted in accordance with the standards applicable to financial audits contained in Government Auditing Standards, and in considering the results of the audit, should be read along with the independent auditors' report. 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. lay 23, 2001 Minneapolis, Minnesota 1 DRAFT ABDO, EICK & MEYERS, LLP Certified Public Accountants GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 2000 CITY OF OTSEGO, MINNESOTA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP DECEMBER 31, 2000 (With comparative totals for December 31, 1999) 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 Due to other governments Deferred revenue Capital lease payable Equipment certificates 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 Capital General Revenue Service Projects $ 739,539 $ 823,433 $ 3,569,034 $ (10,218) 68,265 - - - 64,150 243 - - 9,264 - - - 725 117,942 698,062 19,566 2,184 - - 256,561 $ 884,127 $ 941,618 $ 4,267,096 $ 265,909 $ 120,588 $ - $ - $ 82,943 9,623 166 - - - 10,000 - - 41,498 108,513 694,769 16,729 171,709 118,679 694,769 99,672 - - 3,572,327 - 712,418 822,939 - 166,237 712,418 822,939 3,572,327 166,237 $ 884,127 $ 941,618 $ 4,267,096 $ 265,909 Proprietary Fiduciary Account Totals Fund Types Fund Type Group (Memorandum Only) General Long-term Enterprise Agency Debt 2000 1999 $ (64,547) $ 245,278 $ - $ 5,302,519 $ 5,084,921 - - - 68,265 23,625 1,024 - - 65,417 .60,717 2,306 - - 11,570 3,779 - - - 836,295 962,333 - - - 258,745 27,670 7,097,042 - - 7,097,042 6,236,347 - - 3,572,327 3,572,327 1,492,765 - - 5,909,123 5,909,123 8,310,235 $ 7,035,825 $ 245,278 $ 9,481,450 $ 23,121,303 $ 22,202,392 $ 4,102 $ 245,278 $ - $ 452,911 $ 679,032 - - - 9,789 9,430 - - - 10,000 - 1,024 - - 862,533 993,062 - - 262,000 262,000 288,000 - - 89,450 89,450 - 99,000 - 9,130,000 9,229,000 9,635,000 104,126 245,278 9,481,450 10,915,683 11,604,524 6,921,231 - - 6,921,231 6,055,365 10,468 - - 10,468 87,345 - - - 3,572,327 1,492,765 - - - 1,701,594 2,962,393 6,931,699 - - 12,205,620 10,597,868 $ 7,035,825 $ 245,278 $ 9,481,450 $ 23,121,303 $ 22,202,392 -4- CITY OF OTSEGO, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) 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 Debt 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 I RESIDUAL EQUITY TRANSFER IN RESIDUAL EQUITY TRANSFER OUT FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. -5- 564,219 354,538 92,558 - - 371,499 - - - 39,321 - - - 35,412 37,362 - - 37,567 153,079 - 2,525,795 23,030 - 385,000 - 3,445 - 466,312 - 1,429,031 282,999 851,312 2,525,795 342,411 346,801 1,882,692 (1,865,621) 56,313 17,549 138,000 300,559 - - - 112,480 (337,324) (61,287) - (113,810) (281,011) (43,738) 138,000 299,229 61,400 303,063 2,020,692 (1,566,392) 800,718 370,176 1,492,765 1,791,499 - 149,700 58,870 - (149,700) - - (58,870) $ 712,418 $ 822,939 $ 3,572,327 $ 166,237 Special Debt Capital General Revenue Service Projects $ 852,667 $ (41) $ - $ _ 381,205 - 376,257 - - 256,561 77,020 92,772 2,368,878 - 93 - 190,147 29,307 53,509 23,347 95,136 91,988 30,691 513,722 79,843 282,318 1,771,442 629,800 2,734,004 660,174 564,219 354,538 92,558 - - 371,499 - - - 39,321 - - - 35,412 37,362 - - 37,567 153,079 - 2,525,795 23,030 - 385,000 - 3,445 - 466,312 - 1,429,031 282,999 851,312 2,525,795 342,411 346,801 1,882,692 (1,865,621) 56,313 17,549 138,000 300,559 - - - 112,480 (337,324) (61,287) - (113,810) (281,011) (43,738) 138,000 299,229 61,400 303,063 2,020,692 (1,566,392) 800,718 370,176 1,492,765 1,791,499 - 149,700 58,870 - (149,700) - - (58,870) $ 712,418 $ 822,939 $ 3,572,327 $ 166,237 ` Totals 509,997 (Memorandum Only) 2000 1999 $ 852,626 $ 808,087 381,205 r. 178,495 632,818 1,291,933 2,538,670 497,495 219,547 239,324 263,980 262,929 906,574 679,500 5,795,420 3,957,763 564,219 509,997 447,096 283,627 371,499 247,792 39,321 31,718 72,774 47,738 2,716,441 7,680,440 408,030 150,000 469,757 347,804 5,089,137 9,299,116 706,283 (5,341,353) 512,421 189,600 112,480 4,317,967 (512,421) (189,600) 112,480 4,317,967 818,763 (1,023,386) 4,455,158 5,478,544 208,570 - (208,570) $ 5,273,921 $ 4,455,158 -6- CITY OF OTSEGO, MINNESOTA STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED DECEMBER 31, 2000 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 31 outlay service Principal Interest and other 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 OTHER FINANCING USES FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFER OUT FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. -7- 597,996 564,219 Variance - 260,536 354,538 Favorable Budget Actual (Unfavorable) 38,000 39,321 (1,321) $ 838,883 $ 852,667 $ 13,784 172,350 381,205 208,855 349,485 376,257 26,772 25,850 77,020 51,170 - 93 93 18,000 53,509 35,509 28,000 30,691 2,691 1,432,568 1,771,442 338,874 597,996 564,219 33,777 260,536 354,538 (94,002) 359,406 371,499 (12,093) 38,000 39,321 (1,321) 38,955 35,412 3,543 27,600 37,567 (9,967) 23,030 (23,030) - 3,445 (3,445) 1,322,493 1,429,031 (106,538) 110,075 342,411 232,336 56,313 56,313 (150,575) (337,324) (186,749) (150,575) (281,011) (130,436) $ (40,500) 61,400 $ 101,900 800,718 (149,700) $ 712,418 CITY OF OTSEGO, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE YEAR ENDED DECEMBER 31, 2000 OPERATING REVENUE Charges for services OPERATING EXPENSES Supplies Other services and charges Utilities Repairs and maintenance Depreciation TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUE (EXPENSE) Interest on investments Interest expense TOTAL NONOPERATING REVENUE (EXPENSE) NET LOSS RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 See Notes to Financial Statements. -8- Enterprise $ 62,144 30,871 54,390 5,702 36,547 5,171 132,681 (70,537) 560 (6,900) (6,340) (76,877) 87,345 $ 10,468 CITY OF OTSEGO, MINNESOTA COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE YEAR ENDED DECEMBER 31, 2000 CASH FLOWS FROM OPERATING ACTMTIES Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation (Increase) decrease in assets: Delinquent taxes Accounts Receivable Increase (decrease) in liabilities: Accounts and contracts payable Deferred revenue NET CASH USED 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 DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 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 $ (70,537) 5,171 824 (2,097) 3,930 (115) (62,824) (21,000) (6,900) (27,900) 560 (90,164) 25,617 $ (64,547) $ 865,866 CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Otsego operates under "Optional Plan A" as defined in the State of Minnesota statutes. The City is governed by an elected mayor and four -member council. The Council exercises legislative authority and determines all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. As required by generally accepted accounting principles in the United States, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, 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 The Economic Development Authority of the City was created pursuant to Minnesota Statutes 469.090 through 469.108 to carry out economic and industrial development and redevelopment consistent with policies established by the City Council. The five -member board consists of four Council Members and the Mayor. The Authority may not exercise any of the powers enumerated by the authorizing statutes without prior approval of the City Council. The activities of this fund are blended within the general fund. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts. Fund accounting segregates 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 and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. The preparation of general purpose financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have 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. 1m CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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 2000 or 1999. 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 STATEMENTS DECEMBER 31, 2000 1: 'UMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All special assessments receivable are offset by a deferred revenue liability. Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds". Fixed Assets Property, plant and equipment in the proprietary funds of the City are recorded at cost. Property, plant and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized in the proprietary funds. Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Interest incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property and equipment of the enterprise funds are stated at cost. When assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and any gain or loss on disposition is included in operations. Repair and maintenance expenditures are charged against operations while expenditures which increase the useful life of the asset are capitalized and depreciated. The property and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets which are as follows: Estimated Assets Useful Life Collection and distribution 40 years Compensated Absences 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 sick leave earned is not payable upon separation from the City. Therefore, there is no liability for compensated absences at year end. Long-term Obligations The City reports long-term debt of governmental funds at face value in the general long-term debt account group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds. -12- Note 1: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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 in the United States. 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. B. C. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles in the United States 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 September 15, 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. Excess of Expenditures over Appropriations For the year ended December 31, 2000, expenditures exceeded appropriations in the General Fund by $106,538. Budgeted expenditures were $1,322,493 and actual was $1,429,031. The excess was funded with revenue in excess of budget. Deficit Fund Equity The following funds had deficit fund balances as of December 31, 2000. The deficit in each fund will be eliminated by future revenue sources. Special Revenue Funds Monticello Fire District $ 1,542 Park Shelter 15,855 Capital Projects Fund No. Mississippi Watershed Project 96,954 1998 Odean Project 284,518 78th Street Sewer and Water 371,348 78`a Street Construction 334,146 Page Avenue Street Construction 52,628 Pae Avenue Sewer and Water 221 88 Street Improvements 123,568 -13- Note 3: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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 $1,842,655 and the bank balance was $1,931,381. 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: 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. 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: U.S. Government Securities Commercial Paper Broker Certificates of Deposits Total Carrying CateQory and 1 2 3 Fair Value $ 65,331 $ - $ - $ 65,331 2,739,084 - - 2,739,084 472,173 - 472,173 Investments not subjected to categorization: Broker Money Market Total -14- 3,276,588 183.276 CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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 $ 272,252 Savings 1,235 Certificates of Deposit 1,569,168 Total Deposits 1,842,655 Investments 3,459,864 Total Cash and Temporary Investments 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 2000. B. Due From Other Governments The General Fund has $2,184 due from Wright County. The Capital Project Funds have $256,561 due from the State of Minnesota. D. Fixed Assets A summary of the Proprietary Fund Type property, plant and equipment at December 31, 2000 follows: Water Sewer Total Municipal Well $ 206,836 $ - $ 206,836 Work in Process 2,334,906 4,586,325 6,921,231 Total Fixed Assets 2,541,742 4,586,325 7,128,067 Less Accumulated Depreciation Net Fixed Assets E. Deferred Revenue (31,025) - (31,025) 2.510.717 $ 4.586.325 7097 042 Deferred revenue at December 31, 2000 is comprised of the following: -15- Special Debt Capital General Revenue Service Projects Enterprise Total Taxes — Delinquent $ 40,773 $ 243 $ - $ - $ 1,024 $ 42,040 Special Assessments Delinquent 725 8,704 23,176 187 - 32,792 Deferred 99,566 671,593 16,542 - 787,701 Total L—AL4 -8 S_16.729 862,533 -15- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS — CONTINUED 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: 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 Interest Issue Maturity Balance at and Issued Rate Date Date Year End G.O. Improvement Bonds of 1991 $ 210,000 6.25% 08-26-91 08-01-03 $ 75,000 G.O. Improvement Bonds of 1996 665,000 5.00-5.60 08-01-96 02-01-07 440,000 G.O. Improvement Bonds of 1999 B 1,800,000 4.25-4.75 07-01-99 12-01-09 1,630,000 Total General Obligation Improvement Bonds 2.145.000 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 $ 99,000 G.O. Water and Sewer Revenue Bonds of 1998, Series A 4,500,000 6.50-4.50 08-01-98 12-01-20 4,390,000 G.O. Sewer and Water Bonds Series 1999 A 2,595,000 5.20-5.25 07-01-99 12-01-20 2,595,000 Total General Obligation Revenue Bonds 7.084.000 General Obligation Equipment Certificates In January of 2000, the City issued equipment certificates to finance the acquisition of certain capital equipment. The certificates will be repaid with the collection of taxes. Equipment Certificates $112,480 6.125% 01-01-00 07-01-04 $ 89 450 -16- Note 3: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED 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, $163,546 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 Interest Issue Maturity Balance at and Issued Rate Date Date Year End Municipal Building Lease $ 450,000 6.00% 12-01-92 12-01-07 $ 262,000 Changes in General Long-term Liabilities During the year ended December 31, 2000, the following changes occurred in liabilities reported in the General Long-term Debt Account Group: Principal Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of long-term debt totaled $3,572,327 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- Balance Balance January 1 Additions Reductions December 31 Capital Leases $ 288,000 $ - $ 26,000 $ 262,000 General Obligation Bonds 9,515,000 - 385,000 9,130,000 Equipment Certificates - 112,480 23,030 89,450 Total 9.803.000 $ 112.480 $ 434.030 9.481.450 The annual requirements to amortize all debt outstanding as of December 31, 2000 are as follows: Enterprise General Long-term Debt Debt G.O. G.O. G.O. Year Ending Improvement Revenue Capital Equipment Revenue December 31, Bonds Bonds Leases Certificate Bonds Total 2001 $ 724,975 $ 135,565 $ 40,410 $ 25,940 $ 28,692 $ 955,582 2002 737,993 135,565 38,980 25,939 28,370 966,847 2003 709,997 135,565 53,550 25,940 27,990 953,042 2004 680,810 135,565 51,240 25,939 28,553 922,107 2005 661,835 135,565 48,930 - - 846,330 Thereafter 5,734,838 3,967,635 90,930 9,793,403 Total 9,250,448 4,645,460 324,040 103,758 113,605 14,437,311 Less Interest (2,715,448) (2,050,460) (62,040) (14,308) (14,605) (4,856,861) Principal Amounts Available for Long-term Debt. Available fund balance in the debt service funds for repayment of long-term debt totaled $3,572,327 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- Note 3: Note 4: CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS — CONTINUED G. H. Contributed Capital The changes in the government's contributed capital account for its proprietary fund were as follows: Sources Beginning Balance, Contributed Capital Contributed Assets from Other Funds Ending Balance, Contributed Capital Fund Equity Reservations and Designations Enterprise Water Sewer Total $ 2,064,847 $ 3,990,518 $ 6,055,365 270,059 595,807 865,866 The following amounts have been reserved in the appropriate funds: Purpose Amount Reserved Debt Service Funds Debt Service $ 3.572.327 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) which is a cost-sharing, multiple -employer retirement plan. This plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. -18- CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 4: DEFINED BENEFIT PENSION PLANS — STATEWIDE — CONTINUED There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree -- no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the 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 percent, respectively, of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll; 11.43 percent for Basic Plan PERF members and 5.18 percent for Coordinated Plan PERF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2000, 1999 and 1998 were $12,792, $10,277 and $9,796, 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. 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. 30 CITY OF OTSEGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 5: OTHER INFORMATION - CONTINUED C. Segment Information for Enterprise Funds The City provides water and sewer, which are accounted for in Enterprise Funds. The segment information for the Enterprise Funds for the year ended December 31, 2000 is as follows: -20- Water Sewer Total Operating Revenue $ 57,817 $ 4,327 $ 62,144 Depreciation Expense 5,171 - 5,171 Operating Loss 26,263 44,274 70,537 Net Loss 32,603 (44,274) 76,877 Net Working Capital (45,069) (44,274) (89,343) Total Assets 2,491,254 4,544,571 7,035,825 Total Equity 2,389,648 4,542,051 6,931,699 Fixed Asset Additions 270,059 595,807 865,866 Contributed Capital 2,334,906 4,586,325 6,921,231 Bonds Payable 99,000 - 99,000 -20- COMBINING AND INDIVIDUAL FUND STATEMENTS CITY OF OTSEGO OTSEGO, MINNESOTA YEAR ENDED DECEMBER 31, 2000 CITY OF OTSEGO, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 2000 AND 1999 ASSETS Cash and temporary investments Accrued interest receivable Delinquent taxes receivable Special assessments receivable Delinquent 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- 2000 1999 $ 739,539 $ 798,436 68,265 23,625 64,150 57,650 725 725 9,264 3,570 2,184 2,807 $ 884,127 $ 886,813 $ 120,588 $ 35,714 9,623 9,430 41,498 40,951 171,709 86,095 712,418 800,718 $ 884,127 $ 886,813 CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) Miscellaneous Interest on investments 18,000 2000 35,509 1999 Special assessments - 93 Variance - 1,332 Rent 13,000 14,885 Favorable 21,443 Franchise fees Budget Actual (Unfavorable) Actual REVENUE - 2,396 2,396 3,452 Property taxes $ 838,883 $ 852,667 $ 13,784 $ 807,753 Total 46,000 84,293 Licenses and permits 73,091 TOTAL REVENUE 1,432,568 1,771,442 Business 4,500 5,575 1,075 4,805 Nonbusiness 167,850 375,630 207,780 173,690 Total 172,350 381,205 208,855 178,495 Intergovernmental State Local government aid 118,825 118,825 - 110,576 Property tax credits 146,788 146,788 - 146,780 Police aid 8,000 10,104 2,104 8,091 State aid for streets 74,000 92,135 18,135 76,592 Other state grants 1,872 8,405 6,533 23,035 Total 349,485 376,257 26,772 365,074 Charges for services General government 19,350 62,708 43,358 30,118 Culture and recreation 3,000 1,333 (1,667) 3,356 Recycling 3,500 12,979 9,479 7,194 Total 25,850 77,020 51,170 40,668 Miscellaneous Interest on investments 18,000 53,509 35,509 27,037 Special assessments - 93 93 1,332 Rent 13,000 14,885 1,885 21,443 Franchise fees 15,000 9,264 (5,736) 18,718 Refunds and reimbursements - 2,396 2,396 3,452 Other - 4,146 4,146 1,109 Total 46,000 84,293 38,293 73,091 TOTAL REVENUE 1,432,568 1,771,442 338,874 1,465,081 -22- CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) EXPENDITURES Current General Government Mayor and council Personal services Other services and charges Fw Variance - Favorable Budget Actual (Unfavorable) Actual $ 35,360 $ 26,782 $ 8,578 $ 26,944 28,690 5,177 23,513 22,454 Total 64,050 31,959 32,091 49,398 Administration Personal services 205,361 210,081 (4,720) 181,723 Supplies 30,200 35,346 (5,146) 24,574 Other services and charges 32,150 35,160 (3,010) 25,731 Total 267,711 280,587 (12,876) 232,028 Planning commission Personal services 3,300 3,366 (66) 2,339 Supplies 100 - 100 - Other services and charges 300 99 201 169 Total 3,700 3,465 235 2,508 Assessor Personal services 20,724 19,724 1,000 20,347 Other services and charges 250 166 84 598 Total 20,974 19,890 1,084 20,945 Engineer Other services and charges 38,000 22,243 15,757 38,180 Planner Other services and charges 43,500 26,302 17,198 25,144 Clerk/Treasurer Supplies - 218 (218) 388 Other services and charges 26,850 19,668 7,182 21,826 Total 26,850 19,886 6,964 22,214 -23- CITY OF OTSEGO, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) 2000 1999 Variance - Favorable Budget Actual (Unfavorable) Actual EXPENDITURES - CONTINUED Current - Continued General Government Legal Other services and charges $ 30,000 $ 28,650 $ 1,350 $ 26,851 EDA Personal services 1,291 160 1,131 280 Other services and charges 14,065 13,479 586 5,092 Total 15,356 13,639 1,717 5,372 City hall Personal services 2,275 1,381 894 2,614 Supplies 2,650 1,619 1,031 418 Other services and charges 70,930 83,906 (12,976) 70,516 Total 75,855 86,906 (11,051) 73,548 Old town hall Other services and charges - 4,063 (4,063) 4,238 City clean up day Other services and charges 12,000 26,629 (14,629) 9,395 Total General Government 597,996 564,219 33,777 509,821 Public Safety Police Other services and charges 168,536 167,994 542 128,523 Building inspection Other services and charges 80,000 182,367 (102,367) 84,852 Code enforcement Other services and charges 9,000 2,758 6,242 4,562 Animal control Other services and charges 3,000 1,419 1,581 1,419 Total Public Safety 260,536 354,538 (94,002) 219,356 -24- CITY OF OTSEGO, MINNESOTA GENERALFUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) EXPENDITURES - CONTINUED Current - Continued Public Works Streets and highways Personal services Supplies Other services and charges Total Street lighting Total Public Works Sanitation Recycling Professional services Culture and Recreation Community recreation Personal services Parks Personal services Other services and charges Total Heritage preservation Personal services Supplies Other services and charges Total Rider Transportation Other services and charges Total Culture and Recreation 2000 1999 Variance - Favorable Budget Actual (Unfavorable) Actual $ 134,006 $ 148,976 $ (14,970) $ 106,582 51,300 61,419 (10,119) 54,277 158,100 147,737 10,363 74,280 343,406 358,132 (14,726) 235,139 16,000 13,367 2,633 12,653 359,406 371,499 (12,093) 247,792 38,000 39,321 (1,321) 31,718 21,328 22,692 (1,364) 19,882 1,291 - 1,291 650 9,000 7,669 1,331 8,026 10,291 7,669 2,622 8,676 1,291 500 791 730 800 - 800 2,636 2,050 1,917 133 952 4,141 2,417 1,724 4,318 3,195 2,634 561 3,195 38,955 35,412 3,543 36,071 Total Current Expenditures 1,294,893 1,364,989 (70,096) 1,044,758 -25- CITY OF OTSEGO, MINNESOTA GENERALFUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) EXPENDITURES - CONTINUED Capital outlay General government Public works Total Capital outlay Debt service Principle Interest and other Total Debt service TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) 2000 1999 Variance - Favorable Budget Actual (Unfavorable) Actual $ 4,100 $ 7,729 $ (3,629) $ 2,182 23,500 29,838 (6,338) 15,727 27,600 37,567 (9,967) 17,909 - 23,030 (23,030) - - 3,445 (3,445) - - 26,475 (26,475) - 1,322,493 1,429,031 (106,538) 1,062,667 110,075 342,411 232,336 402,414 - 56,313 56,313 - (150,575) (337,324) (186,749) (189,600) (150,575) (281,011) (130,436) (189,600) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES $ (40,500) FUND BALANCE, JANUARY 1 RESIDUAL EQUITY TRANSFER OUT FUND BALANCE, DECEMBER 31 -26- 61,400 $ 101,900 800,718 (149,700) $ 712,418 212,814 587,904 $ 800,718 CITY OF OTSEGO, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS Cash and temporary investments Delinquent taxes receivable Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND BALANCE (DEFICIT) LIABILITIES Accounts payable Accrued salaries and benefits payable Due to other governments Deferred revenue TOTAL LIABILITIES FUND BALANCE (DEFICIT) Unreserved Undesignated (Deficit) TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) -27- Fire Districts Elk River Albertville Rogers Monticello $ 101,064 $ 10,460 $ 11,645 $ (1,612) 15,787 1,559 294 736 71,160 12,826 4,500 11,080 $ 188,011 $ 24,845 $ 16,439 $ 10,204 $ - $ - $ - $ - 10,000 - 77,860 13,895 4,769 11,746 77,860 13,895 14,769 11,746 110,151 10,950 1,670 (1,542) $ 188,011 $ 24,845 $ 16,439 $ 10,204 IPI -11 Self Park Funding Capital Park and Park Park Totals Development Insurance Equipment Recreation Shelter Tree 2000 1999 $ 635,382 $ 22,472 $ 57,233 $ 2,511 $ (15,855) $ 133 $ 823,433 $ 360,744 243 - - - - - 243 1,219 18,376 18,746 _ - - _ _ - 99,566 86,376 $ 635,625 $ 22,472 $ 57,233 $ 2,511 $ 15,855 $ 133 $ 941,618 $ 467,085 $ - $ - $ - $ - $ - $ - $ - $ 382 166 - - 166 - _ - - - 10,000 - 243 - - - - - 108,513 96,527 243 - - 166 - - 118,679 96,909 635,382 22,472 57,233 2,345 (15,855) 133 822,939 370,176 $ 635,625 $ 22,472 $ 57,233 $ 2,511 _LL5,8551 $ 133 $ 941,618 $ 467,085 IPI -11 CITY OF OTSEGO, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) REVENUE Property taxes Intergovernmental Charges for services Miscellaneous Park dedication fees Refunds and reimbursements Other Interest on investments TOTAL REVENUE EXPENDITURES Current General Government 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 (DEFICIT), JANUARY 1 RESIDUAL EQUITY TRANSFER IN FUND BALANCE (DEFICIT), DECEMBER 31 -29- Fire Districts Elk River Albertville Rogers Monticello 68,682 12,828 4,385 6,877 3,640 170 431 - 72,322 12,998 4,816 6,877 57,688 17,520 10,000 7,350 57,688 17,520 10,000 7,350 14,634 (4,522) (5,184) (473) 14,634 (4,522) (5,184) (473) 95,517 15,472 6,854 (1,069) $ 110,151 $ 10,950 $ 1,670 $ (1,542) 518,234 2,620 (201,016) - (21,230) - 303,063 134,931 117,148 19,852 108,549 2,345 5,375 133 370,176 235,245 - - 149,700 - - - 149,700 - $ 635,382 $ 22,472 $ 57,233 $ 2,345 $ (15,855) $ 133 $ 822,939 $ 370,176 -30- Self Park Funding Capital Park and Park Park Totals Development Insurance Equipment Recreation Shelter Tree 2000 1999 $ (41) $ - $ - $ - $ - $ - $ (41) $ 334 - - - - - - - 1,405 - - - - - - 92,772 93,563 508,610 - - - - - 508,610 107,800 - 1,688 - - - 1,688 2,302 - - 3,424 - - 3,424 40 13,171 932 4,997 - 6 - 23,347 10,732 521,740 2,620 4,997 3,424 6 - 629,800 216,176 - - - - - - - 176 - - - - - - 92,558 64,271 127 - - 11,025 26,210 - 37,362 11,667 3,379 - 149,700 - - - 153,079 15,731 3,506 - 149,700 11,025 26,210 - 282,999 91,845 518,234 2,620 (144,703) (7,601) (26,204) - 346,801 124,331 - - - 12,575 4,974 - 17,549 10,600 - - (56,313) (4,974) - - (61,287) - - - (56,313) 7,601 4,974 - (43,738) 10,600 518,234 2,620 (201,016) - (21,230) - 303,063 134,931 117,148 19,852 108,549 2,345 5,375 133 370,176 235,245 - - 149,700 - - - 149,700 - $ 635,382 $ 22,472 $ 57,233 $ 2,345 $ (15,855) $ 133 $ 822,939 $ 370,176 -30- CITY OF OTSEGO, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS Cash and temporary investments Special assessments receivable Delinquent Deferred Due from other funds TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Deferred revenue FUND BALANCE Reserved for debt service G.O. G.O. " G.O. Improvement G.O. Water and Improvement Bonds of Bonds Sewer Bonds of Bonds of 1991 of 1996 1998 and 1999A 1999B $ 86,663 $ 261,548 $ 2,897,870 $ 322,953 9,730 6,942 - 9,797 - 208,638 25,295 437,660 $ 96,393 $ 477,128 $ 2,923,165 $ 770,410 $ 9,730 $ 213,557 $ 25,295 $ 446,187 86,663 263,571 2,897,870 324,223 TOTAL LIABILITIES AND FUND BALANCE $ 96,393 $ 477,128 $ 2,923,165 $ 770,410 -31- Totals 2000 1999 $ 3,569,034 $ 1,466,575 26,469 17,882 671,593 821,902 - 24,863 $ 4,267,096 $ 2,331,222 $ 694,769 $ 838,457 3,572,327 1,492,765 $ 4,267,096 $ 2,331,222 -32- CITY OF OTSEGO, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) G.O. G.O. G.O. Improvement G.O. Water and Improvement Bonds of Bonds Sewer Bonds of Bonds of 1991 of 1996 1998 and 1999A 1999B REVENUE Water and Sewer Availability Charges Special assessments Refunds and reimbursements Interest on investments TOTAL REVENUE EXPENDITURES Debt service Principal Interest and fiscal charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES OTHER FINANCING SOURCES Operating transfers in Bond proceeds TOTAL OTHER FINANCING SOURCES EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND FINANCING OTHER USES FUND BALANCE, JANUARY 1 FUND EQUITY TRANSFER IN FUND BALANCE, DECEMBER 31 $ - $ - $ 2,368,878 $ - 6,261 72,028 - 111,858 - - 79,843 - 3,794 10,642 68,060 12,640 10,055 82,670 2,516,781 124,498 25,000 80,000 110,000 170,000 6,250 25,510 354,970 79,582 31,250 105,510 464,970 249,582 (21,195) (22,840) 2,051,811 (125,084) - - - 138,000 138,000 (21,195) (22,840) 2,051,811 12,916 107,858 227,541 846,059 311,307 - 58,870 - - $ 86,663 $ 263,571 $ 2,897,870 $ 324,223 -33- Totals 2000 1999 $ 2,368,878 $ 363,264 190,147 203,108 79,843 419,348 95,136 28,051 2,734,004 1,013,771 385,000 150,000 466,312 347,804 851,312 497,804 1,882,692 515,967 138,000 179,000 - 148,125 138,000 327,125 2,020,692 843,092 1,492,765 649,673 58,870 - $ 3,572,327 $ 1,492,765 -34- CITY OF OTSEGO, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS Cash and temporary investments Due from other governments Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND BALANCE (DEFICIT) LIABILITIES Accounts payable Deferred revenue TOTAL LIABILITIES FUND BALANCE (DEFICIT) Unreserved Undesignated (Deficit) TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) -35- Municipal MSA Island Building Construction View $ 163,546 $ 515 $ - 3,024 - - 16,542 - $ 163,546 $ 20,081 $ - 16,729 - 16,729 - 163,546 3,352 - $ 163,546 $ 20,081 $ - -36- Revolving Water and 78th Street Watershed Projects 1998 Odean Capital Sewer 1999 Sewer and No. Mississippi Lefebvre Project Improvements Construction Overlay Water $ (96,954) $ 35,999 $ (511,006) $ 386,764 $ 246,474 $ 598,927 $ (355,001) - - 256,561 - - - - $ (355,001) $ 598,927 $ 386,764 $ 246,474 $ 35,999 $ (254,445) $ (96,954) $ - $ 540 $ 30,073 $ - $ 4,848 $ 54 $ 16,347 - 540 30,073 - 4,848 54 16,347 (96,954) 35,459 (284,518) 386,764 241,626 598,873 (371,348) $ (96,954) $ 35,999 $ (254,445) $ 386,764 $ 246,474 $ 598,927 $ (355,001) -36- CITY OF OTSEGO, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET - CONTINUED DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS Cash and temporary investments Due from other governments Special assessments receivable Delinquent Deferred TOTAL ASSETS LIABILITIES AND FUND BALANCE (DEFICIT) LIABILITIES Accounts payable Deferred revenue TOTAL LIABILITIES FUND BALANCE (DEFICIT) Unreserved Undesignated (Deficit) TOTAL LIABILITIES AND FUND BALANCE (DEFICIT) -37- Page Avenue Page Avenue 78th Street Street Sewer and Construction Construction Water $ (309,054) $ (50,634) $ (221) $ (309,054) $ (50,634) $ (221) $ 25,092 $ 1,994 $ - 25,092 1,994 - (334,146) (52,628) (221) $ (309,054) $ (50,634) $ (221) 1999 88th Equipment Street Totals Certificates Improvements 2000 1999 $ - $ (119,573) $ (10,218) $ 2,394,719 - - 256,561 - - - 3,024 714 - - 16,542 15,988 $ - $ (119,573) $ 265,909 $ 2,411,421 $ - $ 3,995 $ 82,943 $ 603,934 - - 16,729 15,988 - 3,995 99,672 619,922 - (123,568) 166,237 1,791,499 $ - $ (119,573) $ 265,909 $ 2,411,421 -38- CITY OF OTSEGO, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) 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 Debt proceeds Operating transfers out TOTAL OTHER FINANCING (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE (DEFICIT), JANUARY 1 RESIDUAL EQUITY TRANSFER OUT FUND BALANCE (DEFICIT), DECEMBER 31 -39- Municipal MSA Island Building Construction View $ - $ - $ 7,211 2,112 - 29,307 7,211 31,419 7,211 31,419 - (58,142) - (58,142) - 7,211 (26,723) - 156,335 30,075 58,870 - - (58,870) $ 163,546 $ 3,352 $ - -40- Revolving Water and Watershed Projects 1998 Odean Capital Sewer 1999 No. Mississippi Lefebvre Project Improvements Construction Overlay $ - $ - $ 256,561 $ -- 1,130 6,429 - 11,119 28,587 35,400 87,562 75,051 - - - - 88,692 81,480 256,561 11,119 28,587 35,400 150,423 173,503 195,273 - 631,556 512,529 (61,731) (92,023) 61,288 11,119 (602,969) (477,129) - - 58,142 105,858 - 80,891 - (55,668) - - - - - (55,668) 58,142 105,858 - 80,891 (61,731) (147,691) 119,430 116,977 (602,969) (396,238) (35,223) 183,150 (403,948) 269,787 844,595 995,111 $ (96,954) $ 35,459 $ (284,518) $ 386,764 $ 241,626 $ 598,873 -40- CITY OF OTSEGO, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) - CONTINUED YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) 78th Street Page Avenue Sewer and 78th Street Street Water Construction Construction 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 Debt proceeds Operating transfers out TOTAL OTHER FINANCING (USES) EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE (DEFICIT), JANUARY 1 RESIDUAL EQUITY TRANSFER OUT FUND BALANCE (DEFICIT), DECEMBER 31 -41- 118,160 - - 118,160 - 234,310 339,413 52,519 (234,310) (221,253) (52,519) 55,668 55,668 - (234,310) (165,585) (52,519) (137,038) (168,561) (109) $ (371,348) $ (334,146) $ (52,628) Page Avenue 1999 88th Sewer and Equipment Street Water Certificates Improvements Totals 2000 1999 $ _ $ _ $ - $ 256,561 $ 925,454 91,988 197,109 - 29,307 34,884 1,545 - 282,318 105,288 1,545 - 660,174 1,262,735 221 112,480 123,568 2,525,795 7,646,800 (221) (110,935) (123,568) (1,865,621) (6,384,065) _ - - 300,559 - 112,480 - 112,480 4,169,842 - - (113,810) - 112,480 - 299,229 4,169,842 (221) 1,545 (123,568) (1,566,392) (2,214,223) - (1,545) - 1,791,499 4,005,722 - - - (58,870) - $ (221) $ - $ (123,568) $ 166,237 $ 1,791,499 -42- CITY OF OTSEGO, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS CURRENT ASSETS Cash and temporary investments Delinquent taxes receivable Accounts receivable TOTAL CURRENT ASSETS FIXED ASSETS, AT COST LESS ACCUMULATED DEPRECIATION NET FIXED ASSETS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable Current portion of bonds payable Deferred revenue TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Bonds payable, less current portion above TOTAL LIABILITIES FUND EQUITY Contributed capital Retained earnings Unreserved (Deficit) TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY Water Sewer Totals 2000 1999 $ (21,774) $ (42,773) $ (64,547) $ 25,617 1,024 - 1,024 1,848 1,287 1,019 2,306 209 (19,463) (41,754) (61,217) 27,674 2,541,742 4,586,325 7,128,067 6,262,201 (31,025) - (31,025) (25,854) 2,510,717 4,586,325 7,097,042 6,236,347 $ 2,491,254 $ 4,544,571 $ 7,035,825 $ 6,264,021 $ 1,582 $ 2,520 $ 4,102 $ 172 23,000 - 23,000 21,000 1,024 - 1,024 1,139 25,606 2,520 28,126 22,311 76,000 - 76,000 99,000 101,606 2,520 104,126 121,311 2,334,906 4,586,325 6,921,231 6,055,365 54,742 (44,274) 10,468 87,345 2,389,648 4,542,051 6,931,699 6,142,710 $ 2,491,254 $ 4,544,571 $ 7,035,825 $ 6,264,021 -43- CITY OF OTSEGO, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 2000 (With comparative totals for December 31, 1999) OPERATING REVENUE Charges for services OPERATING EXPENSES Supplies Other services and charges Utilities Repairs and maintenance Depreciation TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUE (EXPENSES) Property taxes Interest on investments e Interest expense TOTAL NONOPERATING REVENUE (EXPENSES) NET LOSS RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS (DEFICIT), DECEMBER 31 -44- Totals Water Sewer 2000 1999 $ 57,817 $ 4,327 $ 62,144 $ 2,625 30,871 - 30,871 - 42,889 11,501 54,390 2,707 5,149 553 5,702 640 - 36,547 36,547 - 5,171 - 5,171 5,171 84,080 48,601 132,681 8,518 (26,263) (44,274) (70,537) (5,893) - - - 28,502 560 - 560 1,118 (6,900) - (6,900) (8,050) (6,340) - 6,340) 21,570 (32,603) (44,274) (76,877) 15,677 87,345 - 87,345 71,668 $ 54,742 $ (44,274) $ 10,468 $ 87,345 CLAIMS LIST CITY COUNCIL MEETING JULY 9, 2001 TO: Judy Hudson Attached is the Claims List for the City Council. For more details, please refer to the Check Detail Registers. If you have any questions regarding this service, please let me know. Claims Registers 6-28-2001 $ 122,164.36 7-05-2001 $ 66,423.99 GRAND TOTAL $ 188,588.35 If you have any questions or if you would like to review this list further, please let me know. Kathy Grover Bookkeeper CITY OF OTS EGO Thuredey, July 06, 2001 Check Detail Register Pegs 1 of 3 Check Amt Invoice Comment 10100 BANK OF ELK RIVER .IJpaid BONESTROO ROSENE ANDERUK E 415-43251-302 Engineering Fees $2,121.45 79449 IST PHASE TREATMENT PLANT E 415-43251-302 Engineering Fees $25,400.00 79450 WWTP EXPANSION E 430-43100.302 Engineering Fees $900.00 79451 W EST W WTP Total 13ONESTROO ROSENE ANDERUK $28,421.46 ,w..M..,...�.,,.,-.�..,,,..,..v.,,:.�,.........�,,,...r...,,•.,..,.�,�..�,,.,,.,�,.�,.,.,..•.�,..�,.�,.,.�...,..w.,,..,�„�w.w..�,AA.�„��aa a,�.�:>.z:,�:�-,w..o,.b.arn,.,,,�:�::.: Unpaid BOYER TRUCKS E 101-43100.220 Repair/Maint Supply (GENERAL) $136.08 404753 94 FORD TRK E101-43100-220 Repair/Maint Supply (GENERAL) $185.59 404771 92 FORD TRK E 101-43100-220 Repair/Maint Supply (GENERAL) $722.42 920OR 94 FORD TRK Total BOYER TRUCKS $1,044.09 Vnp i — BUSINESS FORMS AND ACCOUNTING A E 101-41600-201 Office Supplies $291.78 27869 ACCTS PAYALE CHECKS Total BUSINESS FORMS AND ACCOUNTING $291.78 .un N. , ., .... DONS BAKERY « x�,e.n �. wri.ms • ..:✓ E 101-41400-310 Miscellaneous $11.96 5815 6/18 MEETING Total DON'S BAKERY $11.96 'n��,��. E MPUB 5 AS I��,,.b.,��,,»•�4.M�..�,.arw, E 101-41400-360 Print/Binding (GENERAL) $41.48 113207 LEGAL NOTICE Total ECM PUBLISHERS INC $41.48 Unpaid �... w. n.. w ..�, E�M�RiVER PRINTfNQ 8 PARTY PLU �x„w E 101-41400-203 Supplies -General $50.06 13226 CORRECTION NOTICE FORMS Total ELK RIVER PRINTING A PARTY PLU $50.06 Unpaid .w..aaxwocvxvc.+acNKE FIN'S WATER CARE ,•.oww•cocnzroocarr.:nv:wrvArar»Ha:mwc:warraRav.,:x.u�+a.v...,.,nwmn.v. E 101-41400-310 Miscellaneous $9.59 TOWN HALL E 101-41950-310 Miscellaneous $29.82 13620 90TH ST Total FINKEN'S WATER CARE $39.41 rn:.v vovpwwo>»»:xavw.>ara-wccaonrr Unpaid vawwmcorowasooaoeo-.amaxc<wxrow••::asusam>wae.evu.v.rr GLENS TRUCK CENTER INC V•:....urwv +u-+:�.rrnv. rarwaysi•«.+.,•......•.w.....•:..,•.v......+...1..•..•: E 101-43100-220 Repair/Maint Supply (GENERAL) $360.97 211760062 1981 TRK Total GLENS TRUCK CENTER INC $360.97 Un •� ,.,M„ w K. GRANITE CITY LEASING INC E101-41400-413 Office Equipment Rental $34.02 4 TOSHIBA FAX Total GRANITE CITY LEASING INC $34.02 >,-,�:�..a-,��.w�..a �.ww«.�a�,wn.o.www��wwww- �...•A,�.,..�...,M..,.,..•,.�,�,....�...,..,-...-:.,.,...�4.,A,•.,,.•�k.,w,,.V,.,.�.,....w�..�..w�...�..�.. Unpaid ICMA RET1REfdENT TRUST G 101-21705 Other Retirement $130.00 PPE 6/23/01 E 101-41400-121 PERA $201.92 PPE 6/23/01 Total ICMA RETIREMENT TRUST $331.92 :M^r•N•A4ia•M.000tV.00.'�!�”)tin'M•iy?'tW'WNNNL'✓�•ui�•n'c'n•+vro+�w.•wvi�r�,a,Y��a'nivanwUevb.:,1v.M+nvw.Mwvrwwv�:.vvvrn�xvw.vv:nvnv.vvw,vki:v:wviHN:.•I.v:+.w�wwiwi/.?:9'�i�1'%IYfM%JHYGNri4HS///ihTiA'`• Unpaid KENNEDY GRAVEN, CHARTERED E 101-41700-301 Legal Services $210.41 38281 OVS APPLICATION Total KENNEDY & GRAVEN, CHARTERED $210.41 LONGS SONS:�w�.w�w��...........-.,..r...,......w,..�.r�.d,,:�•..�_,.•...��.Y.,...<✓.Y.....,.,.,M,.,�,,.,.,.,..w�,.•w,.�•...�..,...✓,,,,.....w...... CITY OF OTSEGO Thursday, July 05, 2001 Check Summary Register Page 1 of 1 no Check Data Check Amt 10100 BANK OF ELK RIVER UnPald BONESTROO ROSENE ANDERLIK $28,421.45 UnPaid BOYER TRUCKS $1,044.09 UnPaid BUSINESS FORMS AND ACCOUNTING $291.78 UnPaid DON'S BAKERY $11.96 UnPaid ECM PUBLISHERS INC $41.48 UnPaid ELK RIVER PRINTING & PARTY PLU $50.06 UnPaid FINKEN'S WATER CARE $39.41 UnPaid GLENS TRUCK CENTER INC $360.97 UnPaid GRANITE CITY LEASING INC $34.02 UnPaid ICMA RETIREMENT TRUST $331.92 UnPaid KENNEDY& GRAVEN, CHARTERED $210.41 UnPaid LONG & SONS $760.74 UnPaid MAMA $64.00 UnPaid MICHAEL JOHN ROBERTSON $395.37 UnPaid MINNESOTA COPY SYSTEMS $270.64 UnPaid NAPA OF ELK RIVER INC $270.04 UnPaid PURCHASE POWER $215.00 UnPaid RANDY'S SANITATION $2,063.33 UnPaid RMR SERVICES, INC $9,612.42 UnPaid SUPERIOR LAWN &SNOW $2,879.76 UnPaid SUPERIOR SERVICES $460.00 UnPaid WASTE MANAGEMENT $125.05 Unpaid WRIGHT COUNTY AUDITOR -TREASURE $17,033.33 UnPaid ZIEGLER INC $1,436.76 Total Checks $66,423.99 CITY OF OTSEGO Thursday, July 06, 2001 Check Detail Register Pape 2 of 3 x Miscellaneous Check Amt Invoice Comment E 101-41400-203 Supplies - General $29.93 Y T. PAPER E 101-41400-203 Supplies - General $59.38 C -FOLDS E 101-41940.389 Cleaning Services $225.00 COMM ROOM CLEANING E 101-41940.389 Cleaning Services $446.43 JUNE CLEANING Miscellaneous Total LONG & SONS $760.74 MISC :�,xreroexw-exwxanceca:eow Unpaid ....-_.•.,•ue.,t•. M-AM•.x•...•.awe wn^,e....a+w+e«<.we+ve...c...w>w.yw•n+.,.«.^.,w.,,,•.^....-....,...:,.•..•:,....xw.w....,,..y..w..x«.Y.v..•.w..:,..w..Hococc:cam':maw.c.�.-Ao»: MAMA $33.54 E 101-41400.360 Education/fraiiiing/Conferences $16.00 122 MARCH LUNCHEON MEETING E 101-41400-360 Educaticn/Training/Conferences $16.00 16 APRIL LUNCHEON MEETING E 101-41400-360 Educadon/TralningiConferences $16.00 69 FEB LUNCHEON MEETING E 101-41400-360 Education/TrainingvConferences $16.00 96 JAN LUNCHEON MEETING Total MAMA $64.00 'rnp.v.��www�e:woewKx Unpaid MICHAEL JOHN ROBERTSON E 101-41400-360 Education/Training/Conferences $395.37 REIMBURSE L OF MCC Total MICHAEL JOHN ROBERTSON $395.37 Uripaidxw.w^wxYw^ ^.,xxxw„x.�� MINNESOTA COPY SYSTEMS E 101-41400-413 Office Equipment Rental $270.64 97800 TOSHIBA COPIER Total MINNESOTA COPY SYSTEMS $270.64 K4.ReA. YCHWiWW4P:a� �oAFY.vo, tl0[IT'%1We��WM•EOYOM�6,bf4vv, .K•AVY'WpIOm,M'A44N4K'^,»M tabfs JbMN/n?,YeMMM•wW.v..vw-wxvvw.x Unpaid NAPA OF ELK RIVER INC E 101-43100-310 Miscellaneous $33.13 844452 MISC E 101-43100.310 Miscellaneous $62.38 846275 MISC E 101-43100-310 Miscellaneous $71.28 846570 MISC E 101-43100,310 Miscellaneous $62.90 846571 MISC E 101-43100-310 Miscellaneous $6.81 847318 MISC E 101-43100.310 Miscellaneous $33.54 847319 MISC Total NAPA OF ELK RIVER INC $270.04 ra<or.aw:cwwo:vo.�rn»:.xes:woxa;cn:w,•<w<e.iwawnve•...�senxY�•a:ivun»vawws.-ia:Y.overs.Ynw-«...v:a»mw.w..«.w.....«w..,. xw....w»�csncavnmwrx�+:s:v.aa Unpaid PURCHASE POWER E 101-41400-206 Postage $215.00 POSTAGE BY PHONE Total PURCHASE POWER $215.00 Unp d - E 101-43610-390 Contracted Services $1,973.75 843 CITYWIDE RECYCLING E 101-41940-325 Garbage Service $89.58 844 TRASH Total RANDY'S SANITATION $2,063.33 -.w.,u..wwv.s•:<m.v.a,wrvr+.....w.Y.y-....-....•.-...x.w..xxw..•^•.ww..w.^w..�.w..:..-::....Y.w.w.xxw.x....�:,.racc+uamaavaaws000:e:amc;:w.rax^+^-.v iaccaauc-.rx<xmvavncaaocxormxcnuaw:caaxrc:n:ra.a Unpaid RMR SERVICES, INC E 60149400-203 Supplies - General $5,884.92 2001-234 WATER METERS E 601-49400-310 Miscellaneous $3,727.50 2001.238 HANDHELD METER READER Total RMR SERVICES, INC $9,612.42 ^•�F�S��JAA:wY�GiY.OJJO>OYpMP!�o'.'9ef•YAWiOJOJGOb'.OI.Ow^Y+�wvnxv.wrMAv/•fM�Y+v:M/� ,Unpaid �^ S1IPERIOR LAWN &SNOW "' E 101-41400-390 Contracted SeMces $216.00 137 SWALE & SOUTH WOODS E 101-41400-390 Contracted Services $684.00 137 FIELDS E 101-41400-390 Contracted Services $352.00 137 WOODED PRAIRIE PARK E 101-41400-390 Contracted Services 5300.00 137 CITY HALL E 601-49400-390 Contracted Services $276.00 137 PUMP HOUSE 1 E 101-41950-310 Miscellaneous $236.00 137 OLD CITY HALL E 801-49400-390 Contracted Services $180.00 137 WATER TOWER CITY OF OTSEGO Thursday, July 05, 2001 Check Detail Register Page 3 of 3 E 101-43610-390 Contracted SwAcss $460.00 217899 RECYCLING Total SUPERIOR SERVICES $460.00 pn�aW WASTE MANAGEMENT E 101-43610-390 Contracted Services $125.05 0118533-1593- RECYCLING Total WASTE MANAGEMENT $125.05 Unpaud WRKaNT COUNTY AUDITOR-TREASIE E101-42100-390 Contracted Services $17,033.33 PATROL -7 SHERIFF PATROL JULY Total WRIGHT COUNTY AUDITOR -TREASURE $17,033.33 Y.<M.CSM:CriYMOJttMO'AfAd1�JYA000YwOJF%NtOIOMM�✓M�W.vK:hWYWlMGCNNMNY'OOYtdOhYf�.:AO[C4eefec:M:tWO':OIX4:::.v: n:�n.ywvn+wwwn: n:.v:::_v.•wr+wN.avw�nw.:: �w�v:.vvw.vvvn:vv:n-.viv:AMLvYAOA'F.VC59:R•AYiiJCC:Ti Unpaid ZIEGLER INC E101-43100-220 RepairMlaint Supply (GENERAL) Check Amt Invoice Comment Repair/Maint Supply (GENERAL) E 101-43100-220 RepairilMaintSupply (GENERAL) ri E 101-41400-390 Contracted Services $175.76 137 TAX E 1 01-41400-390 Contracted Services $155.00 137 SPRAY ROUND UP E 101-41400-390 Contracted Services $49.00 137 OAKWOOD LOT E 601-49400-390 Contracted Services $20.00 137 WELL 1 E 602-49450-430 1011"lanecus (GENERAL) $236.00 137 SEWAGE PLANT Total SUPERIOR LAWN & SNOW $2,879.76 Unpaid SUPERIOR SERVICES E 101-43610-390 Contracted SwAcss $460.00 217899 RECYCLING Total SUPERIOR SERVICES $460.00 pn�aW WASTE MANAGEMENT E 101-43610-390 Contracted Services $125.05 0118533-1593- RECYCLING Total WASTE MANAGEMENT $125.05 Unpaud WRKaNT COUNTY AUDITOR-TREASIE E101-42100-390 Contracted Services $17,033.33 PATROL -7 SHERIFF PATROL JULY Total WRIGHT COUNTY AUDITOR -TREASURE $17,033.33 Y.<M.CSM:CriYMOJttMO'AfAd1�JYA000YwOJF%NtOIOMM�✓M�W.vK:hWYWlMGCNNMNY'OOYtdOhYf�.:AO[C4eefec:M:tWO':OIX4:::.v: n:�n.ywvn+wwwn: n:.v:::_v.•wr+wN.avw�nw.:: �w�v:.vvw.vvvn:vv:n-.viv:AMLvYAOA'F.VC59:R•AYiiJCC:Ti Unpaid ZIEGLER INC E101-43100-220 RepairMlaint Supply (GENERAL) E 101-43100-220 Repair/Maint Supply (GENERAL) E101-43100-220 Repair/Maint Supply (GENERAL) E 101-43100-220 RepairilMaintSupply (GENERAL) Total ZIEGLER INC $1,393.72 000415723 ($238.78) 080008763 $136.83 060064845 $144.99 080085722 $1,436.76 10100 BANK OF ELK RIVER $66,423.99 EDGE RETURN KIT WEAR/STRIP KIT STRIP BEARINGS CITY OF OTSEGO Thursday, June 2e, 2001 Check Summary Register Page 1 of 1 Name Check Date Check Amt 10100 BANK OF ELK RIVER UnPaid ANTHONY OR SARA WEDELL UnPaid ELK RIVER-ROGERS VFW POST UnPaid FORTIS BENEFITS INSURANCE CO UnPaid HAKANSON ANDERSON ASSOC INC UnPaid JEFFREY SEMLING UnPaid JERRY OLSON UnPaid NORWOOD HOMES INC UnPaid PUBLIC EMPLOYEES RETIREMENT FD UnPaid S. R. WEIDEMA UnPald TOM ANDERSON $1,000.00 $750.00 $94.19 $57,012.87 $1,000.00 $37.128.85 $1,000.00 $986.33 $23,097.12 $95.00 Total Checks $122,164.36 CITY OF OTSEGO Check Detail Register Thursday, June 28, 2001 Page 1 of 2 y�� /�.y, Check Amt Invoice Comment Coym{,�myeen�<t- y�,py�p��.}��.6 y�c �:FN.✓IKn'P.•!M'M' `:C� QY�. .Q�Q@'NA �ih~n'.�Q:C':CiC!"wTKKR2�'F<l/FX•AW'L'A`Y\CH: 10100 BANK OF ELK RIVER v��+b6•otl1VMAW.S'.YY'<::nf•:wv.ve�WY.vw.w+ww,�M/� 4 �2�MeMrvwMww.vw�n✓.uvv.�'::.,':.v n�1 P d ANTHONY OR 3AAA WEDELL E702-41400-310 Miscellaneous $1,000.00 LANDSCAPING REFUND 7976 PALMGR Total ANTHONY OR SARA WEDELL $1,000.00 ELK RIVER•ROQERS VFW OST wx``.�"�. '" ""m"" �° " E415-43251-500 Capital Outlay (GENERAL) $750.00 CITY S/W UTIL IMPR, PERM & TEM Total ELK RIVER-ROGERS VFW POST $750,00 ,�•w� <.w.�<.. ,•:._.....hr.. FORTIS BENEFITS INSURANCE CO E 101-43100-130 Employer Paid Ins (GENERAL) $40.19 PW - JULY E 101-41400-130 Employer Paid Ins (GENERAL) $54.00 ADMIN - JULY Total FORTIS BENEFITS INSURANCE CO $94.19 Unpaid HAKANSON ANDERSON ASSOC INC G 701-21961 Pheasant Ridge #rd & 4th $4,632.87 3744 PHEASTANT RIDGE 4 G 701-21977 Stone Gate 2nd $613.80 3746 STONEGATE 2 E101-41660-302 Engineering Fees $150.00 3747 VERIZON G 701-21940 The 'Point' - Big Eds $37.50 3749 THE POINTE 2 E 101-43100-433 CracidilUng $1,01624 3751 CRACK SEALING E 418-43100-302 Engineering Fees $1,381.86 3772 QUADAY STORM/SANITARY EXT. E 422-43100-302 Engineering Fees $71126 3773 887H ST G 701-21974 Prairie Creek 4th $424.42 3774 PRAIRIE CREEK 4 E 422-43100-302 Engineering Fees $332.94 3775 68TH ST COP #00.03 E 101-41560-302 Engineering Fees $280.00 3776 MSAA E 416.43100-302 Engineering Fees $211.13 3777 99-01 BIT ROAD OVERLAY E 406-43100-302 Engineering Fees $1,284.03 3778 LEFEBVRE CREEK E 601-49400-302 Engineering Fees $350.00 3779 WELL 1 E 413-43100-302 Engineering Fees $17,614.11 3785 ODEAN AVE G 701-21924 Mining permit #7 $112.50 3786 EMMERICH #7 E101-41560-302 Engineering Fees $105.00 3787 STAFF MEETING G 701-21958 Crimson Ponds 111 $175.35 3788 CRIMSON PONDS G 701-21912 PLT 99-4, D. Ullmer $50.19 3789 PRAIRIE CREEK 1 G 701-21938 TMH Development $225.00 3792 TODAY G 701-21941 Pulte Homes $25.10 3793 PRAIRIE CREEK 2 G 701-21940 The 'Point' - Big Ed's $9,239.91 3794 THE POINTE G 701-21936 Mississippi Pines PUD 00 $625.04 3795 MISSISSIPPI PINES G 701-21967 River Point Landing $2,612.88 3796 RIVERPOINTE G 701-21961 Pheasant Ridge #rd & 4th $75.30 3798 PHEASANT RIDGE 3 G 701-21947 Prairie Creek 3rd Addn $50.20 3799 PRAIRIE CREEK 3 G 701-21958 Crimson Ponds III $1,021.92 3800 CRIMSON PONDS 3 G 701-21949 Stone Gate Estates $4,356.57 3801 STONEGATE E 101-41560-302 Engineering Fees $216.33 3814 MISC DEVEL REVIEWS G 701-21980 Hidden Creek Trail Subd $569.40 3815 HIDDEN CREEK G 701-21970 BulaN/Luconic $1,766.78 3816 MEADOWLANDS G 701-21982 Prairie Creek 5th $1,205.38 3817 PRAIRIE CREEKS G 701-21961 Pheasant Ridge #rd & 4th $1,131.25 3818 PHEASANT RIDGE 5 E 101-41560-302 Engineering Fees $1,012.07 3819 M1SC ENG E 418-43100-302 Engineering Fees $512.81 3846 QUADAY AVE - 78TH ST E101-43100-302 Engineering Fees $2,748.35 3849 PUBLIC WORKS E 415-43251-302 Engineering Fees $135.38 3855 TRUNK #98.04 CITY OF OTSEGO Thursday, June 28, 2001 Check Detail Register Page 2 of 2 t^wR Check Amt Invoice Comment Total HAKANSON ANDERSON ASSOC INC $57,012.87 Gnp� >. JEFFREY SEMUNCi W nw ..r .�...we E 702-41400.310 Miscellaneous $1,000.00 LANDSCAPE - 7905 PARELL Total JEFFREY SEMLING $1,000.00 N�A�G4VC'.vCc"T::YOi/A wvi(O" ..rT:P%:^.[9. .. wµaw.y. ywYY:.rn•.uxv.w.v..bvwv.+�v.tlKrr.'+w<:DKK.'M'n.W,dr:1NM'rwrwrvwa•.w:rM•.vnx. Unpaid JERRY OLSON E 101-42410-390 Contracted Services $37,128.85 JUNE Total JERRY OLSON $37,128.85 Unpaid~ K. NOiiWOOD HOMES INC E 702-41400.310 Miscellaneous $1,000.00 LANDSCAPE - 7913 PALMGREN Total NORWOOD HOMES INC $1,000.00 R•C� ?Y.Ji'bAY.MDO]O: JC'YAPn 40opMgJiSJ,vYtw.vM]eris`e:e:mwwNu Unpaid PUBLIC EMPLOYEES RETIREMENT FD E 101-41400.121 PERA $182.04 PPE 6/23/01 E 101-43100-121 PERA $259.96 PPE 6/23/01 G 101-21704 PERA $471.81 PPE 6/23/01 E 101-41550-121 PERA $72,52 PPE 6/23/01 Total PUBLIC EMPLOYEES RETIREMENT FO $986.33 Unpaid S. E 422-43100-530 Improvements Other Than Sidgs E415-43251-500 Capital Outlay (GENERAL) E 422-43100-530 Improvements Other Than Bldgs E 422-43100-630 Improvements Other Than Bldgs E 422-43100-530 Improvements Other Than Bldgs G701-21951 Pulte's W & S E 406-43100-530 Improvements Other Than Bldgs Total S. R. WEIDEMA $14.09 88TH ST ASSESSMENT $127.52 WAC $1,632.33 88TH ST SEWER ASSESS $1,903.05 88TH ST WATER ASSESS $4,525.78 N MISS EAST COMM $6,620.98 SEWER FOR POINTE $8,273.37 LEFEBVRE CREEK WATERSHED $23,097.12 N'btl'�W�O`O:C�Y�'b%�v�`W'C('-VE%Oa:«.�LO�M'Ov*w.v�KN'.�Y%SvapM+•MMN:+VdRMvr.syY.vW4bf[reuppy�prvw.vmww.vvrr:vrrwnvrv: rrrvwr:rwK.v:µwrr.WrvrrvrNKnvM.v.vAvr: AA:Pl04K!Wf?M14in1S\S.: N:R Unpaid TOM ANDERSON E 101-45200-440 Recreatlon Programming $95.00 OTSEGO PARK ENTERTAINMENT Total TOM ANDERSON $95.00 10100 BANK OF ELK RIVER $122,184.36 -V1 L_ �O ►• A� 5775 Wayzata Boulevard, Suite 555, St. Louis Park, M,N 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacplanning.com PLANNING REPORT TO: Otsego Mayor and City Council Otsego Planning Commission FROM: Daniel Licht RE: Otsego - Trudell Trailers; Zoning Amendment/CUP REPORT DATE: 21 June 2001 APPLICATION DATE: 23 April 2001 NAC FILE: 176.02 - 01.15 CITY FILE: 2001-17 BACKGROUND Trudell Trailers proposes to develop a site in the Otsego 1-94 West Industrial Park with a retail business engaged in sales, leasing, rental and service of semi -trailers. The applicant has requested consideration of a text amendment that would allow for outdoor sales of equipment such as semi -trailers as a conditional use within the 1-2 District, without limitation on the amount of outdoor display area. General conformance with the provisions of the Zoning Ordinance notwithstanding the outdoor sales area was already reviewed by the Planning Commission and City Council and approved subject to conditions. As such, this review focuses on the issue of a text amendment and processing the conditional use permit. Exhibits: A. Amendment ANALYSIS Use. The proposed use involves a sales/rental lot for semi -trailers and land -sea containers (boxes transferred from trailer frames to rail cars or ships). It is expected that the use would function much like that of a new -car dealer. There would be an inventory of new and used trailers and land sea containers, as well as some trailers on the site for service. Although the operation is essentially commercial, it involves the sale of products with industrial character. As such, its inclusion within an industrial district may be preferable to areas planned for retail commercial service to the general public. In that the 1-2 District also allows for uses such as major auto repair and truck terminals as permitted uses or truck service and washing as conditional uses, the commercial oriented, but less intense, sales of similar equipment may be compatible. The 1-2 District presently allows for open sales either as a principal or accessory use, by conditional use permit. Under these existing provisions, the size of the sales lot is limited to not more than 50 percent of the gross floor area of a principal building. In the case of the proposed use, the area limitation makes it impractical to develop due to the size of goods and need for inventory. However, the limitation on exterior area is designed to protect the intent of the 1-2 District to provide locations for industrial activities. As with allowing truck service or truck washing, these activities may be compatible under certain circumstances. Amendment. If City Officials determine that the proposed use would be appropriate for the 1-2 District, a mechanism allowing for it must be established. A draft Ordinance amendment has been prepared that would accommodate the proposed semi -trailer sales, leasing and rental principal use as a conditional use within the I-2 District. In addition to sales, leasing and rental of semi -trailers and land -sea containers, the proposed amendment would allow for semi -tractor sales as well as sales of construction or agricultural implements. The semi -tractors are naturally included because of the correlation with semi -trailers. We have also included construction or agricultural implements because they also have "heavy" equipment characteristics and may present an opportunity for new uses along the 1-94 corridors area planned for industrial uses. The conditions listed for allowing such a use within the 1-2 District are intended to mitigate any potential conflicts associated with the sales lot and other allowed uses within the District. Most notably, the location of these uses would be limited to properties having frontage on (but not necessarily direct access to) a collector or arterial street. Such a requirement will tend to move the use to the perimeter of an industrial area. A condition requiring that all of the equipment on site for sale be operational is intended to protect the City from any such use becoming blighted by junk and refuse. Service of any equipment is made subject to the same conditions applicable under the existing provisions allowing "truck service" within this District. Criteria. The decision on whether to amend the Zoning Ordinance to allow for sales of semi -trucks, semi -trailers, land -sea containers, orconstruction and agricultural implements is a policy issue to be decided by City Officials. Sections 20-3-2.F and 20-4.21 of the Zoning Ordinance outline criteria that the City Council and Planning Commission are to consider in evaluating both the text amendment and CUP applications. The decision of the City is to be based upon (but not limited to) the following criteria: Page 2 of 6 The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Plan. Comment: The 1998 Comprehensive Plan encourages focusing highwayl arterial oriented industrial or commercial development adjacent to the y P rincipauses in the 1-94 corridors of 1-94 and T.H. 101 due to access and visibit term trailer service and area include Long Haul Trucking, which includes truck trailer leasing uses. The proposed Trudell Trailers use and those uses identified by the amendment have a similar commercial highway orientation, y et industrial in character. 2. The proposed use's compatibility with present and future land uses of the area. Comment. The area surrounding the Trudell Trailers site is planned oh industrial ouvided uses, with exception of agricultural uses presently planned to th that proper conditions are placed on the use, it is anticipated to be compatible with the surrounding area. 3. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Comment: Trudell Trailers use will be required to conform with applicable conditions prescribed by the Zoning Ordinance. 4. The proposed use's effect upon the area in which it is proposed. Comment: Allowance of sales operations in the 1-2 District must be properly regulated to mitigate any potential conflicts between hconditions e mreis m the proposed of the use and intended pindustrial" uses, which amendment address. 5. The proposed use's impact upon property values of the area in which it is proposed. Comment: Although no study has been completed, the proposed use is not anticipated to negatively impact area property values. 6. Traffic generation by the proposed use in relation to the capabilities of streets serving the property. Comment: Traffic generated by any type of commercially oriented use is a concern. the access and The proposed amendment provides that the City Engineer approve volumes associated with any use to ensure no negative impacts. m ak and accessed by Trudell Traders, the site is at the periphery of the industrialPa streets with sufficient capacity to support the use. Page 3 of 6 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. Comment: The proposed use is a dry industry that would likely only impact street. Adequate protection is provided by the proposed amendment conditions to ensure no negative impact occurs and none is anticipated as part of the Trudell development. Site Plan. The site plan for Trudell Trailers was approved by the City Council on June 4, 2001, following a positive recommendation from the Planning Commission. The site plan approval was made subject to ten conditions. The Otsego 1-94 West Industrial Park developer has provided documentation of recording the final plat, satisfying one condition. Relative to the performance standards outlined by the proposed amendment, additional issues now include limitations on the sale of other goods and requirements against junk and blight. These issues are addressed as part of revised conditions outlined in the recommendation section of this report. All other elements of the Trudell Trailers site plan conform to the proposed amendment standards. CONCLUSION AND RECOMMENDATION The decision on whether to allow the sales or rental of semi -trucks, trailers, land -sea containers or construction and agricultural implements within the 1-2 District is a policy issue for City Officials. The goods being offered for sale do have industrial characteristics that make them unlikely candidates for inclusion within a commercial district. Provided that appropriate conditions on such operations are required, the use may be compatible with the range of uses allowed presently within the 1-2 District. The opportunity for such commercial sales of industrial character equipment to take advantage of the exposure and access along 1-94 also may justify accommodating them. If the Planning Commission and City Council decide favorably on the proposed amendment, the CUP request may be considered. The proposed Trudell Trailers site generally meets all of the conditions prescribed as part of the amendment. As such, we would recommend approval of the CUP subject to the conditions outlined below. The conditions include regulation of refuse, limitations on products and cross reference conditions applicable to the service element of the use. Should the requested amendment be denied, the CUP applications should likewise be denied based on a finding that the use is not allowed within the 1-2 District. Page 4 of 6 Decision 1 - Zoning Ordinance Amendment A. Motion to approve a Zoning Ordinance amendment establishing semi -tractor or semi -trailer and construction or agricultural implement sales, leasing and rental as a conditional use within the 1-2 District based on a finding that the action is consistent with the following polices of the Comprehensive Plan: B. Motion to deny the application based upon a finding that the request is inconsistent with the policies of the Comprehensive Plan. C. Motion to table the application. Decision 2 - Conditional Use Permit A. Motion to approve a CUP for semi -trailer and land -sea container sales, leasing and rental, subject to the following conditions: 1. Site access is subject to review and approval of the City Engineer. 2. Rock face block or cast concrete panels are used for the building exterior. 3. Temporary gravel surfacing of the outdoor storage area shall be allowed for a period not to exceed two (2) years from the date of approval and shall require a performance security for the cost of installing a bituminous surface as determined by the City Engineer. 4. All storage areas must meet applicable principal building setback requirements. The site plan is revised to illustrate areas for storage of trailers or land -sea containers for retail sale or rental and those storage areas for service. 5. All semi -trailers or land -sea containers on the premises are to be in operational condition and not considered to be refuse pursuant to Section 20-16-15 of the Zoning Ordinance. 6. Service activities is permitted in accordance with the applicable standards for truck service within the 1-2 District. 7. Sales, rental or leasing activities allowed under this section shall be limited to semi -trailers and land -sea containers. Sales, rental or leasing of products other than those specifically identified is subject to the applicable provisions of the Zoning Ordinance. Page 5 of 6 8. The site plan is revised to illustrate 12 proof -of -parking stalls, subject to a development agreement as approved by the City Attorney. 9. Perimeter concrete curb is provided at the edge of all bituminous surfaces, excluding the transition between the circulation area and temporary gravel surfaces. 10. All signage shall conform to Section 37 of the Zoning Ordinance and must have a permit issued by the Zoning Administrator prior to construction. 11. A screening enclosure must be provided around any exterior refuse containers as per Section 20-16-15.13 of the Zoning Ordinance. 12. All grading, drainage and utility plans are subject to review and approval of the City Engineer. 13. Comments of other City Staff. B. Motion to deny the application based upon a finding that the request is inconsistent with the policies and provisions of the Comprehensive Plan and Zoning Ordinance. PC. Mike Robertson Judy Hudson Andy MacArthur Larry Koshak Ron Wagner Ken Trudell Grady Kinghom Page 6 of 6 ORDINANCE NO.: CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO ALLOW FOR SEMI -TRACTOR OR SEMI -TRAILER, LAND -$EA CONTAINERS, CONSTRUCTION OR AGRICULTURAL IMPLEMENT SALES, LEASING, AND RENTAL AS A CONDITIONAL USE WITHIN THE 1-2, GENERAL INDUSTRIAL DISTRICT. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Section 20-86-7 of the Zoning Ordinance (1-2 District - Conditional Uses) is hereby amended to include the following text: J. Commercial semi -tractor or semi -trailer, land -sea containers, construction or agricultural implement sales, leasing and rental as a principal use, provided that: 1. The architectural appearance and functional plan of the building and site shall not be so dissimilar to the existing buildings or area as to cause impairment in property values or constitute a blighting influence within a reasonable distance of the lot. 2. The lot has frontage, if not direct access, to an improved collector or arterial street designated by the Comprehensive Plan. 3. The area of the site used for outdoor display shall not exceed fifty (50) percent of the total lot area. 4. All semi -tractors, semi -trailers, land -sea containers, construction or agricultural implements on the premises are to be in operational condition and not considered to be refuse pursuant to Section 20-16-15 of this Chapter. 5. The entire site other than that taken up by a building, structure or plantings shall be surfaced with bituminous or concrete to control dust and drainage, which is subject to review and approval of the City Engineer. EXHIBIT 6. A drainage system subject to approval of the City Engineer shall be installed. 7. At the boundaries of a residential use or district, a landscaping strip not less than 25 feet wide shall be provided to screen outdoor display areas in compliance with Section 20-16-7 of this Chapter. 8. Vehicular access points shall create a minimum of conflict with through traffic movement, shall comply with Section 21 of this Chapter and shall be subject to review and approval of the City Engineer. 9. The display area does not take up parking space or loading space as required by Sections 21 and 22 of this Chapter. 10. All lighting shall be hooded with a 90 degree cut-off and so directed that the light source not be visible from the public right-of-way or adjacent residential uses or districts. 11. All signs, information, or visual communication devices shall be minimized and shall be in compliance with the applicable provisions of Section 37 of this Chapter. 12 Outdoor storage of refuse shall be within containers enclosed and screened from view in compliance with Section 20-16-15 of this Chapter 13. Service of semi -tractors, semi -trailers, land -sea containers, and construction or agricultural implements shall be permitted only in accordance with the applicable provisions for truck service established by this Chapter. 14. Sales, rental or leasing activities allowed under this section shall be limited to those specifically identified. Sales, rental or leasing of product other than those specifically identified by this Section shall be subject to the applicable provisions of this Chapter. 15. All conditions pertaining to a specific site are subject to change when the City Council, upon investigation in relation to a formal request, finds that the general welfare and public betterment can be served as well or better by modifying the conditions. 16. The provisions of Section 20-4-2. F of this Chapter are considered and determined to be satisfied. Section 2. This Ordinance shall become effective immediately upon its passage and publication. PASSED by the Otsego City Council this th day of . 2001. CITY OF OTSEGO BY: Larry Fournier, Mayor ATTEST: Judy Hudson, Zoning Administrator/City Clerk HOIRT" aST ASSOCM, TRD INC, 5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Cynthia Putz-Yang DATE: July 3, 2001 RE: Otsego - July 2nd Planning Commission Meeting FILE NO: 176.08 Trudell Trailers The applicant reported that there are no plans to sell or rent land -sea containers at this time, and nothing will be stored in the trailers on-site. The question was asked whether land -sea containers are allowed to be used in the City. The City Planner will research that question before the next Council meeting. The Planning Commission recommended approval of a Zoning Ordinance amendment to allow for semi -tractor or semi -trailer, land - sea containers, construction or agricultural implement sales, leasing, and rental as a conditional use within the 1-2, General Industrial District. The Planning Commission recommended approval of a CUP for semi -trailer sales, leasing and rental, subject to the conditions listed in the NAC report with the addition of a condition that land -sea containers are not allowed. The ordinance amendment and CUP are scheduled to be considered by the City Council at their meeting on July 9t' at 6:30 PM. Breft Admixtures The City Engineer recommends that a catch basin with a drop box be added to the grading and drainage plan. The applicant reported that shoe -box, down -cast lights are proposed. They have prepared revised plans based on City staff's comments that were submitted at the meeting. They will be using 330,000 gallons of water a year. The Planning Commission would like the City Engineer to comment about whether withdrawing that amount of water from the ground would have any negative impact. The general feeling of the Commission was that it probably wouldn't be a problem. The applicant reported that they will generally have eight employees in the Brett Admixtures office, and the building will be sprinkled. The Planning Commission recommended approval of the site and building plans subject to the conditions listed in the NAC report. This item is scheduled to be considered by the City Council at their meeting on July 9°i at 6:30 PM. Detached Accessory Buildings Ordinance Amendment The question was asked whether the Hoofbeats & Heartbeats riding stable would have been allowed if it had been reviewed by the standards proposed in the ordinance amendment. The maximum total floor area of all detached accessory structures',for a property greater than 10 acres in size is 6,000 square feet, and the Hoofbeats & Heartbeats stable is 9,500 square feet, so it would exceed the maximum. City Planner Licht may have more information related to this question. There was a question about whether Section 20-16-4 B.5.a.(1) on page 2 of 6 of Exhibit B contained a change in content or just format. One of the Planning Commissioners thought that previously a one acre lot could have up to two accessory buildings of 1,000 square feet each. It is my understanding that the change is in format rather than content. Planner Licht will be able to provide more information. Mike Robertson thought it might be helpful to see the current standards in a matrix, which is usually given out when residents request information about accessory buildings. The Planning Commission would like to hear the comments of the Building Inspector before scheduling a public hearing. The Planning Commission will revisit this issue at their meeting in two weeks with the Building Inspector's comments. PC: Mike Robertson, Judy Hudson, Ron Wagner, Andy MacArthur, John Brett, Ken Trudell, and Grady Kinghorn 16 CITY OF 7 OTSEGO -9-01 WRIGHT COUNTY, MINNESOTA Zoning Text Amendment Findings of Fact & Decision Applicant's Name: Kinghorn Construction Inc for Trudell Trailers Inc Request: Application to amend the Otsego Zoning Ordinance to establish provisions for commercial semi -tractor or semi -trailer, construction or agricultural implement sales, leasing and rental as a principal use by conditional use permit in the 1-2, General Industrial District. City Council Meeting Date: 9 July 2001 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 property lies within the Long Range Urban Service Area and is guided for industrial land use by the 1998 Comprehensive Plan Update. 2. The property is zoned 1-2, General Industrial District 3. The applicant has requested a text amendment to allow Commercial semi -tractor or semi- trailer, construction or agricultural implement sales, leasing and rental as a principal use by conditional use permit within the 1-2, General Industrial District per the proposed Ordinance attached as Exhibit A. 4. The Planning Commission and City Council must take into consideration the possible effects of the amendment with their judgement based upon (but not limited to) the criteria outlined in Section 20-3-2.17 of the Zoning Ordinance: A. The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Plan. Finding. The 1998 Comprehensive Plan encourages focusing highway oriented industrial or commercial development adjacent to the City's principal arterial corridors of 1-94 and T.H. 101 due to access and visibility. Existing uses in the 1-94 area include Long Haul Trucking, which includes truck terminal, truck service and trailer leasing uses. The proposed Trudel/ Trailers use and those uses identified by the amendment have a similar commercial highway orientation, yet are also industrial in character. B. The proposed use's compatibility with present and future land uses of the area. Finding. The area surrounding the Trudell Trailers site is planned for industrial uses, with exception of agricultural uses presently planned to the north. Provided that proper conditions are placed on the use, it is anticipated to be compatible with the surrounding area. C. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Finding. Trudell Trailers use will be required to conform with applicable conditions prescribed by the Zoning Ordinance. D. The proposed use's effect upon the area in which it is proposed. Finding. Allowance of sales operations in the 1-2 District must be properly regulated to mitigate any potential conflicts between the more "commercial" aspects of the use and intended "industrial" uses, which the conditions of the proposed amendment address. 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: Traffic generated by any type of commercially oriented use is a concern. The proposed amendment provides that the City Engineer approve the access and volumes associated with any use to ensure no negative impacts. In the case of Trudell Trailers, the site is at the periphery of the industrial park and accessed by streets with sufficient capacity to support the use. 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 is a dry industry that would likely only impact street. Adequate protection is provided by the proposed amendment conditions to ensure no negative impact occurs and none is anticipated as part of the Trudell development. 5. The planning report dated 21 June 2001 prepared by the City Planner, Northwest Associated Consultants, Inc., is incorporated herein. 6. The Otsego Planning Commission conducted a public hearing at their regular meeting on 2 July 2001 to consider the application, 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 5-0 vote that the City Council approve the Zoning Ordinance amendment based on the aforementioned findings. ORDINANCE NO.: CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO ALLOW FOR SEMI -TRACTOR OR SEMI -TRAILER, LAND -SEA CONTAINERS, CONSTRUCTION ORAGRICULTURAL IMPLEMENT SALES, LEASING, AND RENTAL AS A CONDITIONAL USE WITHIN THE 1-2, GENERAL INDUSTRIAL DISTRICT. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Section 20-86-7 of the Zoning Ordinance (1-2 District - Conditional Uses) is hereby amended to include the following text: J. Commercial semi -tractor or semi -trailer, construction or agricultural implement sales, leasing and rental as a principal use, provided that: 1. The architectural appearance and functional plan of the building and site shall not be so dissimilar to the existing buildings or area as to cause impairment in property values or constitute a blighting influence within a reasonable distance of the lot. 2. The lot has frontage, if not direct access, to an improved collector or arterial street designated by the Comprehensive Plan. 3. The area of the site used for outdoor display shall not exceed fifty (50) percent of the total lot area. 4. All semi -tractors, semi -trailers, construction or agricultural implements on the premises are to be in operational condition and not considered to be refuse pursuant to Section 20-16-15 of this Chapter. 5. The entire site other than that taken up by a building, structure or plantings shall be surfaced with bituminous or concrete to control dust and drainage, which is subject to review and approval of the City Engineer. EXHIBIT A 6. A drainage system subject to approval of the City Engineer shall be installed. 7. At the boundaries of a residential use or district, a landscaping strip not less than 25 feet wide shall be provided to screen outdoor display areas in compliance with Section 20-16-7 of this Chapter. 8. Vehicular access points shall create a minimum of conflict with through traffic movement, shall comply with Section 21 of this Chapter and shall be subject to review and approval of the City Engineer. 9. The display area does not take up parking space or loading space as required by Sections 21 and 22 of this Chapter. 10. All lighting shall be hooded with a 90 degree cut-off and so directed that the light source not be visible from the public right-of-way or adjacent residential uses or districts. 11. All signs, information, or visual communication devices shall be minimized and shall be in compliance with the applicable provisions of Section 37 of this Chapter. 12 Outdoor storage of refuse shall be within containers enclosed and screened from view in compliance with Section 20-16-15 of this Chapter 13. Service of semi -tractors, semi -trailers, and construction or agricultural implements shall be permitted only in accordance with the applicable provisions for truck service established by this Chapter. 14. Sales, rental or leasing activities allowed under this section shall be limited to those specifically identified. Sales, rental or leasing of product other than those specifically identified by this Section shall be subject to the applicable provisions of this Chapter. 15. All conditions pertaining to a specific site are subject to change when the City Council, upon investigation in relation to a formal request, finds that the general welfare and public betterment can be served as well or better by modifying the conditions. 16. The provisions of Section 20-4-2.F of this Chapter are considered and determined to be satisfied. Section 2. This Ordinance shall become effective immediately upon its passage and publication. PASSED by the Otsego City Council this 9th day of July, 2001. CITY OF OTSEGO MV Larry Fournier, Mayor ATTEST: Judy Hudson, Zoning Administrator/City Clerk CITY OF 7-9-01 OTSEGO WRIGHT COUNTY, MINNESOTA Conditional Use Permit Findings of Fact & Decision Applicant's Name: Kinghorn Construction, Inc., for Trudell Trailers. Inc. Request: Application for a conditional use permit to allow commercial semi -tractor or semi- trailer sales, leasing and rental as a principal use by within the 1-2, General Industrial District. City Council Meeting Date: 9 July 2001 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 act: 1. The subject site is legally described as Lot 1, Block 1 of the Otsego 1-94 West Industrial Park. 2. The property lies within the Long Range Urban Service Area and is guided for industrial land use by the 1998 Comprehensive Plan Update. 3. The property is zoned 1-2, General Industrial District; Commercial semi -tractor or semi- trailer sales, leasing and rental as a principal use is allowed within said District by conditional use permit. 4. The Planning Commission and City Council must take into consideration the possible effects of the conditional use with their judgement based upon (but not limited to) the criteria outlined in Section 20-4-2.F of the Zoning Ordinance: A. The proposed action's consistency with the specific policies and provisions of the official City Comprehensive Plan. Finding. The 1998 Comprehensive Plan encourages focusing highway oriented industrial orcommercial development adjacent to the City's principal arterial corridors of 1-94 and T.H. 101 due to access and visibility. Existing uses in the 1-94 area include Long Haul Trucking, which includes truck terminal, truck service and trailer leasing uses. The proposed Trudell Trailers use and those uses identified by the amendment have a similar commercial highway orientation, yet are also industrial in character. B. The proposed use's compatibility with present and future land uses of the area. Finding. The area surrounding the Trudell Trailers site is planned for industrial uses, with exception of agricultural uses presently planned to the north. Provided that proper conditions are placed on the use, it is anticipated to be compatible with the surrounding area. C. The proposed use's conformity with all performance standards contained in the Zoning Ordinance (i.e., parking, loading, noise, etc.). Finding: Trudell Trailers use will be required to conform with applicable conditions prescribed by the Zoning Ordinance. D. The proposed use's effect upon the area in which it is proposed. Finding: Allowance of sales operations in the 1-2 District must be properly regulated to mitigate any potential conflicts between the more "commercial" aspects of the use and intended "industrial" uses, which the conditions of the proposed amendment address. 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: Traffic generated by any type of commercially oriented use is a concern. The proposed amendment provides that the City Engineer approve the access and volumes associated with any use to ensure no negative impacts. In the case of Trudell Trailers, the site is at the periphery of the industrial park and accessed by streets with sufficient capacity to support the use. 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 is a dry industry that would likely only impact street. Adequate protection is provided by the proposed amendment conditions to ensure no negative impact occurs and none is anticipated as part of the Trudell development. 5. The planning report dated 21 June 2001 prepared by the City Planner, Northwest Associated Consultants, Inc., is incorporated herein. 6. The Otsego Planning Commission conducted a public hearing at their regular meeting on 2 July 2001 to consider the application, preceded by published and mailed notice. Upon reviewof the application and evidence received, the Otsego Planning Commission closed the public hearing and recommended by a 5-0 vote that the City Council approve the conditional use permit based on the aforementioned findings. Decision: Based on the foregoing information and applicable ordinances, the requested conditional use permit is hereby approved based on the most current plan and information received to date, subject to the following conditions: 1. Site access is subject to review and approval of the City Engineer. 2. Rock face block or cast concrete panels are used for the building exterior. 3. Temporary gravel surfacing of the outdoor storage area shall be allowed for a period not to exceed two (2) years from the date of approval and shall require a performance security for the cost of installing a bituminous surface as determined by the City Engineer. 4. All storage areas must meet applicable principal building setback requirements. The site plan is revised to illustrate areas for storage of trailers for retail sale or rental and those storage areas for service. 5. All semi -trailers on the premises are to be in operational condition and not considered to be refuse pursuant to Section 20-16-15 of the Zoning Ordinance. 6. Service activities is permitted in accordance with the applicable standards for truck service within the 1-2 District. 7. Sales, rental or leasing activities allowed under this section shall be limited to semi- trailers and land -sea containers. Sales, rental or leasing of products other than those specifically identified is subject to the applicable provisions of the Zoning Ordinance. 8. The site plan is revised to illustrate 12 proof -of -parking stalls, subject to a development agreement as approved by the City Attorney. 9. Perimeter concrete curb is provided at the edge of all bituminous surfaces, excluding the transition between the circulation area and temporary gravel surfaces. 10. All signage shall conform to Section 37 of the Zoning Ordinance and must have a permit issued by the Zoning Administrator prior to construction. 11. A screening enclosure must be provided around any exterior refuse containers as per Section 20-16-15.B of the Zoning Ordinance. 12. All grading, drainage and utility plans are subject to review and approval of the City Engineer. 3 PASSED by the Otsego City Council this 9th day of July, 2001. CITY OF OTSEGO Larry Fournier, Mayor Attest: Elaine Beatty, Zoning Administrator/City Clerk S-TX..nn "GOTM WIST ASSOCIATI114 �0��T*►�T�� %MCI 5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners®nacplanning.com PLANNING REPORT TO: Otsego Mayor and City Council Otsego Planning Commission FROM: Cynthia Putz-Yang / Daniel Licht DATE: June 25, 2001 RE: Otsego - Brett Admixtures - Site Plan Review FILE NO: 176.02 - 01.18 Background Kinghorn Company on behalf of Brett Admixtures has requested site and building plan approval for construction of a building with an office/industrial use. The site is located in the 1-94 West Industrial Park in southwestern Otsego. The subject property is approximately 5.1 acres in size and is zoned 1-2, General Industrial District. Attached for Reference: Exhibit A: Site Location Exhibit B: Site Plan Exhibit C: Grading, Drainage, and Erosion Control Plan Exhibit D: Industrial Park Grading Plan Exhibit E: Landscape Plan Exhibit F: Floor Plan Exhibit G: Building Elevations ISSUES ANALYSIS Zoning. The subject site is zoned 1-2, General Industrial District. An office/industrial use is proposed. The grading plan attached in Exhibit C illustrates the division of uses in the building. The north end of the building is proposed to be leased office/industrial space with two loading bays. The rest of the building is proposed to be occupied by Brett Admixtures. The building is designed so that it could be internally divided in the future to be occupied by as many as four businesses. The proposed uses are permitted in the 1-2 District. however, the site plan does not show curbing along the north boundary of the parking area and should be revised. Landscaping. A landscape plan has been submitted that illustrates shrub plantings along the east and south sides of the building. Four deciduous trees and five evergreen trees are also proposed. Loading areas are required to be screened from public rights-of-way. The one ash tree and two pine trees proposed in the southwest portion of the property will provide only minimal screening of the loading area. Staff recommends that a minimum of seven evergreen trees, including both pine and spruce trees, be planted along the western end of the south property line and southern end of the west property line to provide screening of the loading area. Lighting. Lighting is indicated on the site plan; however, individual light fixtures are not shown on the site plan or elevations, and no details have been submitted. The source of proposed lights must be hooded or controlled so as not to light adjacent property or the public right-of-way. Signs. Businesses in industrial districts are allowed to have one freestanding sign that may not exceed 100 square feet on each side with a maximum height of 20 feet. A 50 - square -foot, seven -foot -tall monument sign is proposed in the front yard. A setback of at least one-half the minimum required yard setback is required from all property lines. This results in a setback requirement of 17.5 feet from the front property line. The sign is proposed to be sixteen feet away from the front property line. The setback should be increased to 17.5 feet. Business are also allowed to have a wall sign that does not exceed 100 square feet. A wall sign is proposed that is approximately 40 square feet in size. Space is provided for an additional sign on the portion of the building that is proposed to be leased. A wall sign for the leased area may be added without exceeding the maximum wall sign square footage limitation. The proposed signs are compliant with all requirements. Building Materials. The primary building material is random rib precast concrete panels. The walls are accented with cast -in-place bands of concrete that have a contrasting color. These materials comply with the building material requirements Section 20-17-4.A and B of the Zoning Ordinance. Trash. A trash enclosure is shown on the site plan in the northwest corner of the loading area. A detail of the enclosure is shown on the site plan. The enclosure is proposed to be concrete block painted to match the building. The gates are proposed to be made of vertical cedar boards. The site plan does not illustrate if the leased portion of the building will have a separate trash enclosure. The trash from the leased portion of the building could be stored inside, or if it is stored outside, all exterior trash containers must be screened from view within an enclosure that is similar to or complements the principal structure per Section 20-16-15-B.2 of the Zoning Ordinance. 3 10. Comments of other City Staff. B. Motion to deny the application based on a finding that the request is inconsistent with the provisions of the Comprehensive Plan and Zoning Ordinance. C. Motion to table the request. PC: Mike Robertson, Judy Hudson, Andy MacArthur, Larry Koshak John Brett and Grady Kinghom 5 ity Staff. :)n based on a finding that the request is inconsistent :mprehensive Plan and Zoning Ordinance. m, Andy MacArthur, Larry Koshak )m 5 Nler` ON THE GREAT RIVER ROAD AP in nc. "a W ag x X 0 H W C, in elosauu[w 'ovas3O 3 r� 3? nixiWav IANC p s' pp a $4 ii{9 a ac � •' r joi Suipp q pasodoad l8:e ;c Q Yy1Y9Y^�Irz 3d11i��;��i6�Q[`�,6 a S� "fbg i��3{Y) �gp� iv ��iil!3beye¢t{j1t��tCp �3; �P"tq4d$, {[.p� fl5iYdi1=�l1 i1p4��2M2i s E" s S+. r t if - ----- -- - --b . -Ilt.----- r---------�----------- iOmm•r iwwa I I -'01•m• ' p� - F_ I I; I 119 / r-1 r� r� r� ■■■ � fj�p I I /J ie Y P I � I' v I I "- �_-�� •�- - -' k III'll 1 7 - rib yy yy �{Ill�tilil F u - i. 9889 Y dR I.ao e - = avAtr olw.. now J 0 --- a i e I / .. w '---- M m i �R 7 .._..__ Ip� t " ON 5 Y I 1 y w 60 I i 10I Vd� }? Z; '•RM 0 "WRI" ? t 1P S Proposed Building For fig 9 , BRETT ADMIXTURE Otsego, Minnesota Vill I, L I 'r 1-01 '-w 'w Ir -r '-, "" -W a -r lift - - - - - - - - - - - ------------+------------ L- - - - - - - - - - - - - - — - — - — - — - — --- - Ct ---------- I FL S Proposed Building For fig 9 , BRETT ADMIXTURE Otsego, Minnesota Vill I, L s 9 ; Proposed Building For p a BRETT ADMIXTUREio$�q WOtsego, Minnesota L J II II II 11 11 II ", �� 11 N I' 1 ■ I ❑ ,� II ,1 II It :F ff ,1 ,1 II �j ❑ n II ,1 — 1 II •k 1' I I I( ;1 AH.`•1My pp� ii ;; vF 1' 2 11 51 II �1 �1 11 II 11 II tip; 11 II ,, 1, 11 11 II 11 'I ■ .. 'I 11 ;1 11 II I I, - L� it El 1, ^D I � Z 11 1; II 11 I, 11 1; I II .'ry II 77. 1 1 11 ti`' Iw l 1, 11 4 II 1 1, II II It 1, II II h U it ,1 1; 0 II II i' 11 ii 5q; I 11 II 11 2 11 11 }} II II II II II 4 � I, C II - 11 I I �c+ Q ] tlAcnG II it ■—_ IF p! C�I� YV7f O+ I Ap I s 9 ; Proposed Building For p a BRETT ADMIXTUREio$�q WOtsego, Minnesota L J F -1 b o Proposed Building For BRETT ADMIXTURE Otsego, Minnesota z - J r-' 1 1 r 1 1 1 1 L 1 I LJ LJ f I I 4 � a Q Ye I F r ---------ter---------- I 11 1 11 I I { 1 1 I 1111 111111111111 L--------- JL ------J �1J-�-LLJJJ-LL3J�-LLIJ-I-L L+ b o Proposed Building For BRETT ADMIXTURE Otsego, Minnesota z - J .i -mac m (0, 1 i-) INC, 5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacplanning.com PLANNING REPORT TO: Otsego Mayor and City Council FROM: Daniel Licht DATE: 28 June 2001 APPLICATION DATE: 14 June 2001 RE: Otsego - Meadowlands; Final Plat FILE NO.: 176.02 - 01.19 BACKGROUND S&Z Investments has submitted an application for final plat approval of the Meadowlands single family subdivision. The subject parcel is within the long range urban service area guided by the Comprehensive Plan and is zoned R-3 District. The subject parcel is also within the Shoreland Overlay District of a natural environmentlake. The preliminary pl shoreland district. at, approved May 14, 2001, was processed with a PUD for clustering development within a Final plat applications are processed in accordance with Section 21-3-3 of the Subdivision Ordinance. Final plat applications do not require a public hearing or Planning Commission review, provided that the subdivision is substantially similar to the approved preliminary plat and any conditions of approval. Exhibits: A. Site Location B. Findings of Fact C. Preliminary Plat D. Cedarberg Resubdivision Sketch E. Final Plat ANALYSIS Preliminary Plat Consistency. The layout of the propof oasf Is l plat i i so e rales enerally consistent with that of the preliminary plat. The total nn than the preliminary plat. The loss of one lot is due to changes in the southeast corner of the plat to provide access to O'Brian Avenue. All of the lots exceed the minimum one acre lot size and minimum 150 south final plat ot lot width measured at the front setback line. The changes to theth east cornea of also mean that Lots 17, 18, and 19 of Block 1 cannot be resubdivided in the future should sanitary sewer be made available. As with Lots 8, 9 and 10 of Block 2, a statement should be recorded on the deeds of these lots acknowledging a lack of re-subdivision potential based upon current standards. The final plat includes two outlots. Outlot A overlays einthe majority of the natural transferred to the abutting environment lake. Outlot B is a remnant parcel that is g property owner to the east as part of a land swap that provides abutti for lot to eaccensure through the to O'Brian Avenue. Outlot B should be combined with the9 remnant does not continue to exist. Drainage and utility easements nts have been provided over all wetland and ponding areas, and at the perimeterof a s. 88th Street Extension. A significant condition of preliminary plat approval was that the applicant obtain a secondary access to the subdivision. The applicant has acquired additional land necessary for extension of a public street (88"' Street) to O'Brian Avenue across the Cedarberg property. There was a 13-foot survey error in the platting of the Vaso{ed south of the section ur's Oak Grove Estates pne, which resulted in the proposed 88nStreet corridor being th The applicant is pursuing a quiet title correction of this error. Once core ted, tt lineof8he Street Corridor will be aligned with the section line and abut the south lWaagen property line (platted as part of Otsego Acres). Realignment of 88' Street will effect the configuration of Lot 23, Block 1, but it will still meet minimum standards. Extension of 88' Street would make the Cedarberg and Waagen properties corner lots, subject to a 35 foot setback from the property lines abutting the right-of-way. All of the buildings identified on the grading plan would conform tothis cs only 20 feet from the There is a u shaped structure illustrated on the Cedarberg property that lot line. The applicant has indicated that no actual structure exists in this location. Cedarberg Re-Subdivision. The addition of Outlot B to the Cedarberg property increases potential for resubdivision of the parcel without sanitary sewer a d watcouler service. The be grading plan illustrates how Outlot B and the existing par ular resubdivided into three lots. This resubdivision plan results isomewhat is'o irregplanshaped lots. As such, our office has prepared a sketch of a preferred Page 2 of 4 Subdivision of the Cedarberg property would require processing of a Preliminary and final plat due to the number of resulting lots. An application to divide the Cedarberg property in advance of sanitary sewer service would be subject to the policies outlined -i the Comprehensive Plan for further unsewered development within the Ion service district: g range g urban a. Completion of an unfinished street network. b. The correction or improvement of a demonstrated area drainage problem. C. The dedication of lands to a legitimate public purpose (i.e. desire facility structures, right-of-way dedication, etc.). d Parks, public In consideration of any future application, the City may view the Cedarberg'sartici ation in the Meadowlands project as contributing to correction of the area drainage problem well as providing lands for a legitimate public purpose to complete the street network. Alternatively, the provision of the right-of-way may be considered an obligation of the Meadowlands developer which does not confer the Cedarberg's any development rights under the Comprehensive Plan. This is ultimately a policy issue that would need to be decided in review of an actual development application to subdivide the Cedarberg property. Park and Trail Dedication. No land is to be dedicated for City parks or trails as part of the Meadowlands Final Plat. As such, the applicant is required to pay a cash fee in lieu of land equal to $1,075 per lot. Based on 43 lots, the total cash fee in lieu of land to be paid at the time the development contract is executed is $46,225. Development Moratorium. This preliminary plat is exempted from the current subdivision moratorium based upon the fact that it is outside of the sanitary sewer service district. Construction Plans. The applicant has submitted grading, drainage, storm sewer and street improvement plans. These plans, plus provision of adequate on-site septic systems is subject to review and approval of the City Engineer. Development Contract. With approval of the final plat, the applicant must enter into development contract with the City and pay all required securities and fees. The development contract is subject to review and approval of the City Attorney. Page 3 of 4 CONCLUSION AND RECOMMENDATION The proposed Meadowlands Final Plat is consistent with the approved preliminary plat and applicable conditions. The applicant has addressed the principal issue of providing secondary access to the subdivision with the proposed extension of 88h Street. The modifications to the Final Plat resulting from this design change are inconsequential. As such, our office recommends approval of the application, subject to the following stipulations: The developer install storm water improvements shown on the submitted plans to correct area drainage problems, as approved by the City Engineer. 2. Documentation is recorded with the deeds to Lots, 18, 19, and 20 of Block 1 and Lots 6, 7, and 8 of Block 2 that these lots cannot be re -subdivided if sanitary sewer service is made available based upon current R-4 District performance standards. 3. Outlot B is conveyed to the abutting Cedarberg property and combined with their existing lot. 4. The applicant is to undertake, complete and provide proof of final court order quieting title to the Cedarberg property and curing defects in description. The final legal description shall substantially conform with prior representations of the platted property and the 88th Street extension is realigned to the resulting north property line, subject to review and approval of City Staff 5. Re -subdivision of the Cedarberg property to create additional buildable lots shall be subject to application for preliminary plat and final plat approvals as provided for by the Subdivision Ordinance, and conformance with the Comprehensive Plan. 6. The applicant pay a cash fee in lieu of park and trail land dedication, equal to $1,075 per lot or $46,225 based on 43 lots. 7. All grading, drainage, stormwater, street improvements, utilities and easements are subject to review and approval of the City Engineer. 8. The applicant must enter into a development contract with the City and pay all required securities and fees, subject to review and approval of the City Attorney. 9. Comments of other City Staff. pc. Mike Robertson Judy Hudson Andy MacArthur Ron Wagner George Sanford Page 4 of 4 N/- C ON THE GREAT RIVER ROAD CITY OF OTSEGO WRIGHT COUNTY, NIINiYESOTA Applicant: S&Z Investments 6-26-01 "Final Plat Findings of Fact & Decision Request: Consideration final plat entitled "Meadowlands" for development of 43 single family and two outlots on a 99 acre property located northeast of Nashua Avenue and 85th Street. City Council Meeting Date: 9 July 2001 Findings of Fact: Based upon review of the application 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 attached as Exhibit A. 2. The 99 acre property lies within the Long Range Urban Service Area and is guided for low density residential land uses by the 1998 Comprehensive Plan Update, as amended. 3. The property is zoned R-3, Residential Long Range Urban Service Area District; Single family residential uses are permitted uses of the R-3 District. 4. The Department of Natural Resources has designated a natural environment lake within the subject property; Portions of the property are also within the Shoreland Overlay District. 5 The preliminary plat for Meadowlands was approved by the City Council on May 14, 2001, and is subject to a PUD -CUP for development within a Shoreland Overlay District. 6 The R-3 District requires a minimum lot area of one (1) acre and minimum lot width of one hundred fifty (150) feet; All lots within the proposed final plat meet or exceed these requirements. 7. The planning report dated June 26, 2001 prepared by the City Planner, Northwest Associated Consultants, Inc., is incorporated herein. 8. The final plat application is processed in accordance with Section 21-3-3 of the Subdivision Ordinance. Decision: Based on the foregoing information and applicable ordinances, the Meadowlands Final Plat is hereby approved based on the most current plan and information received to date, subject to the following conditions: The developer install storm water improvements shown on the submitted plans to correct area drainage problems, as approved by the City Engineer. EXHIBIT B 2. Documentation is recorded with the deeds to Lots, 18, 19, and 20 of Block 1 and Lots 6, 7, and 8 of Block 2 that these lots cannot be re -subdivided if sanitary sewer service is made available based upon current R-4 District performance standards. 3. Outlot B is conveyed to the abutting Cedarberg property and combined with their existing lot. 4. The applicant is to undertake, complete and provide proof of final court order quieting title to the Cedarberg property and curing defects in description. The final legal description shall substantially conform with prior representations of the platted property and the 881' Street extension is realigned to the resulting north property line, subject to review and approval of City Staff 5. Re -subdivision of the Cedarberg property to create additional buildable lots shall be subject to application for preliminary plat and final plat approvals as provided for by the Subdivision Ordinance, and conformance with the Comprehensive Plan. 6. The applicant pay a cash fee in lieu of park and trail land dedication, equal to $1,075 per lot or $46,225 based on 43 lots. 7. All grading, drainage, storm water, street improvements, utilities and easements are subject to review and approval of the City Engineer. 8. The applicant must enter into a development contract with the City and pay all required securities and fees, subject to review and approval of the City Attorney. PASSED by the Otsego City Council this 9th day of July, 2001. Attest: CITY OF OTSEGO In Larry Fournier, Mayor Judy Hudson, Zoning Administrator/City Clerk 2 oj�uuwm 'A4UrKYJ - ------ 146PM III , - - Itlr-- -IUL ---W 314*1UToolow T,\ SCNVImoav3rf =.0s)o Md •(IOIM-MIOdi. xLO uj I oil's -si- jig Itu A -n LUA IS :27 f Iq ...... ...... ------- ; -Aj Aa ---------- ........................ 24- 13C p- A�i --- - - - - - - - - EXHIBIT C 1 �0 OJ ................ 88TH STREET Cedarberg Resubdivision Sketch i t z Q m b EXHIBjT D MEADOWLANDS Lot Block Acreage Square Feet 1 1 2.81 acres 122403.6 sqft 2 1 2.39 acres 104108.4 sqft 3 1 2.47 acres 107593.4 sqft 4 1 2.34 acres 10 193 0.4 sqft 5 1 2.36 acres 102801.6 sqft 6 1 2.29 acres 99752.4 sqft 7 1 1.63 acres 71002.8 sqft 8 1 1.66 acres 72306.6 sqft 9 1 1.68 acres 73180.8 sqft 10 1 1.28 acres 55756.8 sqft 11 1 1.32 acres 57499.2 sqft 12 1 1.28 acres 55756.8 sqft 13 1 1.23 acres 53578.8 sqft 14 1 1.05 acres 45738.0 sqft 15 1 1.05 acres 45738.0 sqft 16 1 1.03 acres 44866.8 sqft 17 1 1.63 acres 71002.8 sqft 18 1 1.66 acres 72309.6 sqft 19 1 1.53 acres 66646.8 sqft 20 1 1.00 acres 43560.0 sqft 21 1 1.00 acres 43560.0 sqft 22 1 1.00 acres 43560.0 sqft 23 1 1.00 acres 43560.0 sqft 1 2 1.32 acres 57499.2 sqft 2 2 1.47 acres 64033.2 sqft 3 2 1.97 acres 85813.2 sqft 4 2 1.73 acres 75358.8 sqft 5 2 2.12 acres 92347.2 sqft 6 2 1.48 acres 64468.8 sqft 7 2 1.02 acres 44431.2 sqft 8 2 1.48 acres 64468.8 sqft 9 2 1.36 acres 59241.6 sqft 10 2 1.28 acres 55756.8 sqft 11 2 1.95 acres 84942.0 sqft 12 2 1.80 acres 78408.0 sqft 13 14 2 2 1.80 acres 78408.0 sqft 15 2 1.62 acres 70567.2 sqft 1.47 acres 64033.2 sqft 1 3 2 3 1.30 acres 56628.0 sqft 3 3 1.53 acres 66646.8sqft 4 3 1.54 acres 67082.4 sqR 5 1.53 acres 66646.8 sqft 3 1.74 acres 75794.4 sqft Outlot A 22.75 acres 990990.0 sqft Outlot B 0.83 acres 36154.8 sqft Total Acreage of Block 1 36.69 acres 1598216.4 sqft Total Acreage of Block 2 23.87 acres 1039777.2 sqft Total Acreage of Block 3 7.64 acres 332798.4 sqft Total Acreage of Site 98.53 acres 4291966.8 sqft 3 118INX3 W"WS l /0 Z Jee4S -OU/ ISOMOOSsy F WSJGPed %16,608_ w°f lw.ww .N ,° ,P wwr °w ,• !w/ h2aa —S M,YL',6fe6GN n•szer •..[,o rhB:D II Darr II ,ami 1� ors[! ---ier ---- tr I O w1I w NIi w I; « 1� e.,x oa7 '� I ,� Q: �E 'e'e °sulnV•ew m soma+•. «.wwe I I OZ Y !bu•!.Iro eve Ne- u : DI eV•B _�_.� Iv •l�� I IH EZ '' Iv ZZ tl I� {Z $I ly D �.�</'V.'S r•n• CGI i � ^L �4 I wr_—_• t, E - tr`' 1 g �• •! a � Y T�7;�'O ,i`�' V LZH •`Da% 7wi7S BS ]._u.w.Ban .rrrr uno�'zS 47BS ] •'!'.," ��Ib zfsrc ____J 8i - 0 ' l__ -=__-_-_w -7 B \: Z? 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V°p !m° eVVM wl•wp OO •� ..o]lerr /o wwe,]rwlap V1wN W! e•P 1 V4°•M/- wJs,w lswwaN .N /e wua� lwwaN _ _ � nos pang wwwp NW %qunoJ ly6`u'M 050°640 Ap SONV 7M OO d3n jo 07-06-2001 01:41PM FROM Couri & MacArthur TO Michael C. Couri- Andrew J. MacArthur Robert T. Ruppe-- -gun c;�u,a in ne:zois —AL" uWm%4 w cj4foMia July 6, 2001 City Council Members City. of Otsego c/o Judy Hudson, City Clerk 8899 Nashpa Avenue NE Elk River,'MN 55330 RE: Meadowlands Dear Council Members: COURT & MACAR THUR Aaorneys at Law 705 Central Avenue East PO Bax 369 St. Michael, MN55376.0369 (763) 497-1930 (763) 497-2-599 (FAX) couriandmacarthur®pobox. com 4418823 P.02 I previously met with the Developers regarding a survey gap wbich was discovered between the existing plats to the south and east of the proposedplat of the Meadowlands To insure that good title to the proposed access roadway is conveyed to the City it will most likely require that a quiet title action be undertaken by the Developer. The Developer is ready to proceed with the necessary legal action. Since itis my understanding that the actual roadway construction will not occur within the gap in question, and since the proposed access is not actually within the plat of the Meadowlands, it is my opinion that the Plat can be approved and that the road can be constructed, but that the City should not accept the road until the quiet title action has been completed and good title can be warranted to the City. Therefore, No_ 4. of the proposed Findings should read as follows: "Applicant will construct, at its own risk, access (extension of 88'1' Street) acceptable to City staff to the plat across; the Cedarberg property. Applicant will immediately commence and complete any necessary court or other action to quiet title to the Cedarberg property and cure any defects in the property legal description. The access road will remain Developer's responsibility until such time as marketable title can be warranted to the City, at which time Developer can request that the City accept the access as a City street." I will be available to further discuss this matter and answer any questions you may have at the regularly scheduled. City Council meeting on Monday evening_ i 07-06-2001 01:41PM FROM Couri & MacArthur TO 4418823 P.03 Letter to Otsego City Council July 6, 2001 Page 2 Z trul (ours, Very J. acAith COURT & MACARTHUR cc: Dan Licht, City Planner Ron Wagner, City Engineer Chris Bulow George: Sanford July 9, 2001 RE: Public Hearing notice of vacating a portion of 72"d St. NE Mr. Mayor and Council members. My name is Frank Scharber and I am Commander of the Elk River / Rogers Post 5518 VFW. I thank the City, the City Engineers and the City Attorney for cooperating with us in our gathering of information pertaining to this matter. After receiving and analyzing all information, the VFW is not opposed to vacating the corner of 72nd St. NE as long as the following items are guaranteed. 1.We understand a new street called Quale Avenue will replace the portion of 72"d St. NE being vacated. 2.Our access to both parcels of our land will be maintained by the City of Otsego which includes 72nd St NE and Quale Avenue. 3.The VFW is not responsible for any altering or construction of streets joining its property. 4.The VFW is not responsible for any street project assessments pertaining to the Poulte project now or in the future. We thank the Mayor and Council members for their time. 5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacplanning.com PLANNING REPORT TO: Otsego Mayor and City Council FROM: Daniel Licht DATE: 28 June 2001 RE: Otsego - The Pointe - 21 Addition Final Plat FILE NO.: 176.02 - 01.17 BACKGROUND Pulte Homes of Minnesota, Inc. has sumbitted an application for final plat approval of The Pointe 2nd Addtion. The proposed final plat consists of 48 new units within four structures east of Quaday Avenue and 128 units within 16 structures on the west side of Quaday. The applicant is also replatting eight of the lots (64 units) on the west side of Quaday as part of a street realignment directed by Wright County. The subject site is planned for medium to high density uses and is zoned R-7 District. The preliminary plat and first addition final plat were approved by the City Council on march 27, 2001 and May 22, 2001 respectively. Exhibits: A. Site Location B. Street Vacation Resolution C. Findings of Fact D. Preliminary Plat E. 2nd Addition Final Plat ANALYSIS Preliminary Plat Consistency. Except as discussed in the following paragraphs, the proposed final plat is generally consistent with the approved preliminary plat. The final plat includes the same number of units and structures in the same configuration as approved on the preliminary plat. Streets. The original development plan called for construction of Quaday Avenue through the center of the project as a collector street that would serve as a frontage road to T.H. 101. Existing Parsons Avenue to the west of the subject site was to be vacated. However, Wright County determined that the proposed intersection of Quaday Avenue and CSAH 37 was not setback a sufficient distance from T.H. 101 to allow for a full intersection. Based upon this conclusion, the project design has been revised such that an upgraded Quaday Avenue will follow the existing Parsons Avenue corridor. The internal street that was to be Quaday Avenue will still be provided, now designated as Quail Avenue, and will still be designed to collector street standards. The need for realignment of the collector street corridor requires a change to the intersection of Quaday Avenue, Quail Avenue and 72nd Street. It is necessary to turn 72nd Street south to intersect Quail Avenue, which then intersects with Quaday Avenue. The City Engineer has approved the design of the intersection. This design requires vacation portions of 72nd Street and Quaday Avenue as previously dedicated with the First Addition. Vacation of public right-of-way requires a public hearing held by the City Council and may only be approved if a finding is made that the right-of-way being vacated serves no public purpose. In that the revised intersection provides for adequate circulation, access and public safety, the proposed vacation is appropriate. Setbacks. The setbacks in the R-7 District are 65 feet from an arterial or collector street and 35 feet from a local street. The preliminary plat design was based upon 65 foot setbacks from the street corridor bisecting the property and a 35 foot setback from 72nd Avenue. Because the existing Parsons Avenue corridor was to be vacated, this lot line was treated as a rear line with a 20 foot setback. The planned construction of Quaday Avenue as a collector street along this west property line would require imposition of a 65 foot setback. The unit lots abutting the rear property line are setback a minimum distance of approximately 35 to 40 feet. There is a 30 foot remnant between the west property line of the subject site and the right-of-way corridor. Assuming that this remnant is acquired by the City, it could be conveyed to the subject site, meaning the building locations would meet the setback requirements. Page 2 of 4 Landscaping. The approved site plan included intensive landscaping in the areas abutting CSAH 37, the collector street corridor and T.H. 101. Provision of a collector street abutting the west property line of the projectQplan landscape illustrating aas•milar As such, the applicant should provide aev sed landscape planting plan as provided for along Quail Avenue and CSAH 37. Unit/Base Lot. Section 20-17-10.C.1 of the Zoning Ordinance requires townhouse units intended for owner occupancy to be platted with a base lot and individual unit lots. The proposed final plat provides a base lot and a unit lot for each townhouse building. The final plat should be revised to provide an individual unit lot for each unit within each building, in accordance with the Zoning Ordinance requirements. The base lot should also be platted as an outlot with an overlying drainage and utility easement. outlot A. The proposed final plat includes one outlot, north of the intersection of Quaday Avenue, Quail Avenue and 72"d Street. Given that the parcel is detached from the rest of the project, it should be conveyed to the City to retain ownership due to trunk utility lines that are in place. Park and Trail Dedication. The proposed final plat includes 176 new residential units not previously final platted. As no land was dedicated forparks and trails as art equal t $1 075 per unit. this development, the applicant must pay an cash fee in 1eu o Based upon 176 units, the required cash fee in lieu of land is $189,200. Sewer Capacity. The proposed final plat is to be served by municipal sanitary sewer and water services. This preliminary plat was specifically exempted from the current subdivision moratorium based upon available capacity to service existing preliminary plats. Construction Plans. The applicant is required to submit construction plans for grading, drainage, utility plans and all easements. Construction plans are subject to review and approval of the City Engineer. The City was working with the applicant and the abutting property owner to he west to acquire necessary easements for a regional storm water drainage pond. Approval of the preliminary plat and 11 Addition final plat was conditioned upon signed easement agreements being obtained. According to the City Engineer, the signed easements have not yet been finalized. Development Contract. With approval of the final plat, the applicant must enter into a development contract with the City and pay all required securities and fees. The development contract is subject to review and approval of the City Attorney. Page 3 of 4 CONCLUSION The proposed final plat is generally consistent with the approved preliminary plat and applicable conditions thereof. Changes to the final plat focus mainly on re-routing the Quaday Avenue corridor to the west, providing sufficient spacing for a full intersection at CSAH 37 from T. H. 101. The only issue this realignment presents is provision of a 65 foot setback of the western most structures from the right-of-way. As such, our office would recommend approval of the final plat application subject to the following conditions: 1. The 30 foot remnant parcel abutting the west property line is conveyed to the homeowners association at the time Quaday Avenue right-of-way is platted to provide a minimum 65 foot principal building setback. 2. A landscape plan for the area along the west property line is submitted, illustrating plantings at a density consistent with those to be provided along Quail Avenue, CSAH 37 and T. H. 37, subject to review and approval of City Staff. 3. The final plat is revised to provide each dwelling unit an individual unit lot and the two base lots are platted as outlots with overlying drainage and utility easements. 4. Outlot A is conveyed to the City with an overlaying drainage and utility easement. 5. The applicant pay a cash fee in lieu of park and trail land dedication equal to $1,075 per unit or $189,200 based upon 176 units. 6. The applicant submit all required grading, drainage, utility plans and all easements, which are subject to review and approval of the City Engineer. 7. A signed agreement is obtained from the property owner to the west (Emmerich) for acquisition of land for regional storm water ponding facilities. 8. The City of Otsego will work to acquire necessary land for a regional storm water pond facility, by quick -take if necessary, with all costs associated with the acquisition to be funded by the applicant. 9. The applicant enter into a development contract and post all required securities and fees, subject to review and approval of the City Attorney. 10. Comments of other City Staff. PC. Mike Robertson Judy Hudson Andy MacArthur Ron Wagner Dennis Griswold Page 4 of 4 N/. C ON THE GREAT RIVER ROAD RESOLUTION NO.: CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA RESOLUTION VACATING PORTIONS OF QUADAY AVENUE AND 72ND STREET PREVIOUSLY PLATTED AS PART OF THE POINTE IST ADDITION FINAL PLAT. WHEREAS, Pulte Homes of Minnesota, Inc. has submitted a request to vacate portions of Quaday Avenue and 72"d Street previously dedicated as part of The Pointe 1 st Addition Final Plat described by Exhibit A; and, WHEREAS, the existing Right -of -Way is to be vacated to provide for a realignment of Quaday Avenue, Quail Avenue and 72"d Street as proposed on The Pointe 2"d Addition Final Plat; and, WHEREAS, the realignment of of Quaday Avenue, Quail Avenue and 72"d Street as proposed on The Pointe 2"d Addition Final Plat will provide adequate access to individual parcels and through traffic circulation; and, WHEREAS, the City Council considered the request at a public hearing held during its meeting on 9 July 2001, and received evidence; and, WHEREAS, the planning report dated 28 June 2001 prepared by the City Planner, Northwest Associated Consultants, Inc., is incorporated herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OTSEGO RESOLVES THAT the Right -of -Way easement legally described by Exhibit A is hereby vacated. ADOPTED by the Otsego City Council this 9a' Day of June, 2001. CITY OF OTSEGO B4arryrnier, ZMayor Attest: Judy Hudson, Zoning Administrator/City Clerk EXHIBIT 8 CITY OF OT S E G O 6-28-01 WRIGHT COUNTY, MINNESOTA Final Plat Findings of Fact & Decision Applicant's Name: Pulte Homes of Minnesota Inc. Request: Application for final plat approval of The Pointe 2"d Addition consisting of a total of 240 units within 28 structures, including portions of the project previously final platted as part of The Pointe 1 Addition Final Plat, and one outlot. City Council Meeting Date: 9 July 2001 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 described by attached Exhibit A. 2. The property lies within the Sanitary Sewer Service District and is guided for medium/high density residential and commercial land uses by the 1998 Comprehensive Plan Update. The property is zoned R-7, Residential High Density District, where townhouse uses are a permitted use. 4. The property is governed by a PUD -CUP, approved on 27 March 2000, allowing for subdivision of the townhome units on a base lot/unit lot configuration as well as design flexibility in terms of buildings and lot area per unit. 5. A preliminary plat was approved for the subject property on 27 March 2000, providing for development of 360 townhouse units in two phases. This final plat is planned the second phase. 6. The planning report dated 28 June 2001 prepared by the City Planner, Northwest Associated Consultants, Inc., is incorporated herein. Decision: Based on the foregoing information and applicable ordinances, the requested The Pointe 2 Addition Final Plat is hereby approved based on the most current plan and information received to date, subject to the following conditions: 1. The 30 foot remnant parcel abutting the west property line is conveyed to the homeowners association at the time Quaday Avenue right-of-way is platted to provide a minimum 65 foot principal building setback. EXHIBIT C Ian for the area along the west property line issubmitted Avenue, , illustrating 2. A landscapeP plantings at a density consistent with those val obCity Staffd along and T. H. 37, subject to review and pp 3. The final plat is revised to provide each dwelling unit an individual unit lot and the, two base lots are platted as outlots with overlying drainage and anllity age and me t easement. s. 4. Outlot A is conveyed to the City with an overlaying equal to $1,075 per 5. The applicant pay a cash fee in lieu of park and trail land dedication eq unit or $189,200 based upon 176 units. submit all required grading, drainage, utility plans and all easements, which g. The applicant ineer. are subject to review and approval of the City Eng (Emmerich) for 7. A signed ned agreement is obtained from the property owner to the west acquisition of land for regional storm water ponding facilities. ter and City of Otsego will work to acquire necessary land regional gth he acquisition to be 8. The C y with all costs associated facility, by quick -take if necessary, funded by the applicant. nt enter into a development contract and post all required securities and fees, g. The applies royal of the City Attorney. subject to review and app PASSED by the Otsego City Council this 22nd day of May, 2000. CITY OF OTSEGO B arry Fo rnie , Mayor Attest: Judy Hudson, Zoning Administrator/City Clerk P L 7z- ig- MR +yn wM-•a qn1 »i �o ro w mw st +n •w »+.r .www R1 3 �..m,� �..,, 3.L'I(ld �n '►torswMn� - 3 //�/ 7 ra rnwoa ti7nd n a # MLwryxvd 1"70d MU " oI i Y EXHIBIT D o� Q� Y2 3v 2 iii n ' " a �—v �3wV��abi3 o mini �\�� I ]1I .91 1014 ^.tZ'L 'A ]IOOIYIY S.QhMmyp ai � ,z S i' wM-•a qn1 »i �o ro w mw st +n •w »+.r .www R1 3 �..m,� �..,, 3.L'I(ld �n '►torswMn� - 3 //�/ 7 ra rnwoa ti7nd n a # MLwryxvd 1"70d MU " oI i Y EXHIBIT D CITY OF OTSEGO REQUEST FOR COUNCIL ACTION July 9, 2001 ITEM NUMBER: ITEM DESCRIPTION: PREPARED BY: 7.1. NPDES Storm Water Requirements City Engineer 7.2. West Otsego Sanitary Sewer & Water City Engineer System Feasibility Report 7.1. & 7.2. These items were tabled from the previous Council agenda. Please bring your information from the previous meeting, or contact us if you need a new copy. Hakanson 1 Anderson Assoc., Inc. June 19, 2001 Mike Robertson City of Otsego 8899 Nashua Avenue NE Otsego, MN 55330 Re: NPDES Phase II Dear Mike: 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 Phone: 763/427-5860 Fax: 763/427-0520 As requested by the Council, we have reviewed the storm water program requirements for Otsego in relation to the National Pollutant Discharge Elimination System (NPDES). The EPA has divided all cities into 3 categories they call MS4's or municipal separate storm sewer systems. Large MS4's have populations greater than 250,000 and medium MS4's have populations between 100,000 to 250,000. This leaves Otsego in the small MS4 category. NPDES Phase II categorizes small MS4's even further into regulated small MS4's and non-regulated small MS4's. Regulated small MS4's are "urbanized" cities of any size up to 100,000 (usually greater than 10,000). The EPA considers "urbanized" an average population density of at least 1,000 people per square mile. NPDES Phase II was added to include the many cities which were "urbanized" but did not have the population or the area to ever meet the old Phase I medium MS4 requirement of 100,000 i.e. Minnesota cities would be Hilltop and Lauderdale, etc. They are small but "urbanized" and are surrounded by urbanized areas. Otsego is considered a non-regulated small MS4 due to its "non -urbanized" status. Otsego currently has a population density of 230-people/square mile. Otsego also does not have an "urbanized" neighbor. The neighboring city closest to being considered "urbanized" is probably Elk River at 700- people/square mile. I called MPCA, the NPDES governing body in Minnesota, and they confirmed our conclusion that Otsego is not a regulated small MS4 under NPDES Phase II. The only change Otsego has to do and has, is any project disturbing 1 acre or greater must apply for a NPDES permit and follow Best Management Practices Civil 6- Municipal �� Engineering G: Wlunicipal\AOTSEGO\901\2001\ot901mr2 dsurveyingfor (BMP). This is a change from NPDES Phase I requirement of any project greater than 5 acres requiring a NPDES Permit. If the City of Otsego had been considering a regulated small MS4, they would have been required to implement the following 6 control measures: 1. Public Education and Outreach 2. Public Participation / Involvement 3. Illicit Discharge Detection and Elimination 4. Construction Site Runoff Control 5. Post -Construction Runoff Control 6. Pollution Prevention / Good House Keeping These measures would cost the City some money to implement and some man- hours to maintain. It is our recommendation for a City such as Otsego to continue to follow the storm water program which is outlined in the Otsego Engineering Manual and meet the standards required for a non-regulated small MS4's set forth by NPDES Phase II. However, in the future the city should consider development of an Ordinance that specifically is directed toward the maintenance policies, and financing of storm water facilities. If you have any questions or comments, you may contact me at 763-427-5860. Sincerely, Hakanson Anderson Associates, Inc. Ronald J. gne E. RJW:dIc cc: Judy Hudson, Clerk Lawrence G. Koshak, City Engineer GAMunicipaRAOTSEG0\901 \2001\M901 mr2.doc Hakanson 1 -111 Anderson Assoc., I nc. Michael C. Couri- Andrew J. MacArthur Robert T. Ruppe•- •A Lw licensed in Illinois **Also licensed in Califibmia July 3, 2001 City Council Members City of Otsego c/o Judy Hudson, City Clerk 8899 Nashua Avenue NE Elk River, MN 55330 COURT & MACARTHUR Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, MN 55376-0369 (763) 497-1930 (763) 497-2599 (FAX) couriandmacarthur@pobox. com RE: Odean Avenue- 88th Street Assessment Hearing Resolutions Dear Council Members: Enclosed for action at next Monday's City Council meeting please find enclosed two resolutions ordering an assessment hearing for Odean Avenue and 88`h Street. At the last Council meeting the assessment roll was ordered. I have already provided the City Clerk with the notices for the hearing which should be sent out by the end of this week. If you have any questions I will be available to discuss them at the Monday City Council meeting. Very trul ours, rew J. lac ur COURT & NIACARTHUR Encls. cc: Ron Wagner, City Engineer CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT- ODEAN AVENUE WHEREAS, by a resolution passed by the Council on , the City Clerk was directed to prepare a proposed assessment of the cost of improving Odean Avenue between County Highway 39 and County Highway 37 by a three inch bituminous overlay, storm drainage improvements, construction of a bike trail and attendant improvements to said roadway, AND WHEREAS, the clerk has notified the council that such proposed assessment has been completed and filed in her office for public inspection. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA: 1. A hearing shall be held on the 30`h day of July, 2001 in the Otsego City Hall at p.m. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior- to the hearing, and she shall state in the notice the total cost of the improvement. She shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 3. The Owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the assessment. The assessed property owner may at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid , with interest accrued to December- 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. ADOPTED BY THE OTSEGO CITY COUNCIL this day of July, 2001. IN FAVOR: OPPOSED:: CITY OF OTSEGO Fournier, Mayor Judy Hudson, City Clerk CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. v� RESOLUTION FOR HEARING ON PROPOSED ASSESSMENTN WHEREAS, by a resolution passed by the Council on , the Cit Clerk was directed to prepare a proposed assessment of the cost of improving 88` Street from CSAH 42 to Quaday Avenue by grading, aggregate base, bituminous surfacing, construction of storm sewer improvements, concrete curb and gutter, sanitary sewer, watermain, pavement marking, landscaping and turf establishment and attendant improvements to said roadway, AND WHEREAS, the clerk has notified the council that such proposed assessment has been completed and filed in her office for public inspection. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA: 1. A hearing shall be held on the 30`" day of July, 2001 in the Otsego City Hall at p.m. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and she shall state in the notice the total cost of the improvement. She shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 3. The Owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the assessment. The assessed property owner may at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid , with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. ADOPTED BY THE OTSEGO CITY COUNCIL this day of July, 2001. IN FAVOR: OPPOSED:: CITY OF OTSEGO Larry Fournier, Mayor Judy Hudson, City Clerk CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 97-1 CITY OF OTSEGO ORDINANCE PERTAINING TO DEFECTIVE OR MALFUNCTIONING EMERGENCY ALARM SYSTEMS WITHIN THE CITY OF OTSEGO. The City Council of the City of Otsego ordains as follows: Section 1. Any false alarm call to an individual, or business that, in the opinion of Fire Chief having jurisdiction over the area, was the result of a defective or malfunctioning alarm system will receive a notice outlining this policy, indicating a second false alarm call within the calendar year will subject the property owner to a $100.00 charge. The notice will also indicate that three or more false alarms during the calendar year will result in the property owner being charged $250.00 for each additional false alarm. Section 2. Any unpaid service charge shall be placed as a special assessment against the property pursuant to Minn. Stat. 429.101, after proper notice and hearing. ADOPTED this 13TH day of January, 1997. IN FAVOR: Lary Fournier, Mayor, Council Members Vern Heidner, Suzanne Ackermen OPPOSED: Virginia Wendel and Mark Berning No One Elaine Beatt , C CITY O OTSEGO Larry;F urnie , Mayor 11; [$ TM;7 Posted. 1/23/97 Published: 1/29/97 Elk River Star News. Michael G Couri- Andrew J. MacArthur Robert T. Ruppe'- 'A Lm licensed in llhmxs ":ILm lirmc d in Cali(nmia June 25, 2001 City of Otsego Attn: City Administrator 8899 Nashua Avenue NE Elk River, MN 55330 COURI & MACARTHUR Attornevs at Law 705 Central Avenue East PO &)x 369 St. Michael, MN 55376-0369 (763) 497-1930 (763) 497-2599 (FAX) couriandmacarthur®pobox. com Re: City of Otsego; Verizon Water Tower Lease Agreement Dear City Council Members: Enclosed please find a revised Antenna Site Use Agreement and proposed Memorandum of Site Use Agreement for the Council's consideration. As you are aware, this office provided the City's generic water tower lease agreement to representatives of Verizon Wireless. Verizon's attorneys have reviewed the City's agreement and proposed several changes for the council's consideration. I have meet and conferred with Verizon's attorneys and have resolved most of the issues raised by my earlier June 20, 2001 letter. However, the Council may wish to consider the following issues: Paragraph 2. Verizon requests that the initial five year term commence on the issuance of a building permit to Verizon rather than on the date the agreement is executed by the City. Verizon further requests that the Council consider modifying the agreement to allow them to extend the lease from two (2) additional five year terms to four (4) additional five year terms. Paragraph 4. The site use fee proposed by Verizon is S 12,000 per year with 5% yearly increases. Paragraph 8. Verizon proposes to submit detailed construction plans at the time of its building permit application. This conflicts with the City's proposal which would require Verizon to submit to the City a detailed technical site plan, including location of utilities, equipment placement drawings, frequencies, ERP calculations, and antenna wind load calculations, which must be approved by the City prior to execution of this Agreement by City. .After conferring with Verizon, it appears that Verizon's proposed changes would not limit the City's ability to control both the location and type of equipment that is placed on its water tower as these issues are covered in other areas of the Agreement. City of Otsego June 20, 2001 Page 2 Paragraph 15. Verizon's proposed language would require the City to obtain, at its own expense, standard League of 'Minnesota Cities insurance coverage. Paragraph 26. Verizon's proposed modification changes subparagraph B to allow Verizon to terminate the lease agreement if it is forced to remove its equipment. Paragraph 26. Verizon also proposes to delete the provision that would allow both parties to terminate the agreement with or without cause upon serving the other party with six months written notice of intent to cancel. Should the City Council adopt this modification, it would limit the City's ability to terminate the lease agreement should there arise any potential conflicts or disputes with Verizon. Paragraph 34. Verizon wishes to added a paragraph that the City agrees to sign a Memorandum of Site Use Agreement which Verizon may record with the "appropriate Recording Officer." This document incorporates Venzon's proposed changes to the lease agreement and will have to be modified consistent with the Council's position on the issues raised by this letter with regard to length of the rental term and the date that the Agreement commences. Please note that the Memorandum makes reference not only to Verizon leasing space not only on the City's water tower but also land sufficient for the installation of an equipment building. Although I do not see a problem with this issue, I should point out that this leasing of land adjacent to the water tower for an equipment building was not contemplated in the original lease agreement. Please see Exhibit B 1 attached to the Memorandum for the proposed location of the equipment building. Your courtesy and cooperation in this matter is appreciated. Should you have any questions please do not hesitate to contact me via our toll-free number (888) 316-1176. Sincerely, P,� Robert T. Ruppe Couri & MacArthur Enclosures 1"F;oe4 �+e,n,•w'�n 7�wt+ I.e.ar l'mn�i W�+ele++ I.n�e� i.� t'•v.�il rc l'm: m Irx.e .h.��¢e+ _ .4p CITY OF OTSEGO REQUEST FOR COUNCIL ACTION July 9, 2001 ITEM NUMBER: ITEM DESCRIPTION: PREPARED BY: 8.B. Verizon Water Tower Lease Agreement City Attorney 8.B. This item was tabled from the previous Council agenda. Please bring your information from the previous meeting, or contact us if you need a new copy. CITY OF OTSEGO REQUEST FOR COUNCIL ACTION July 9, 2001 ITEM NUMBER: ITEM DESCRIPTION: PREPARED BY: 9.2.. Facility Use Rental City Administrator 9.2. Facility Use Rental. As some of you have already heard, last weekends renters committed an unusual amount of damage. We are still obtaining repair estimates and hope to have them for you by the Council meeting, but the damage will almost certainly exceed the amount of the damage deposit. STAFF RECOMMENDATION We will be recommending an increase in the damage deposit from the current $400. Hennepin County Administration Sandra L. Vargas, County Administrator A-2303 Government Center 300 South Sixth Street Minneapolis, MN 55487-0233 July 6, 2001 Mr. Larry Fourniei, Mayor City of Otsego Otsego City Hall 8899 Nashua Avenue N.E. Otsego, MN 55330 Dear Mayor Fourniei: 612-348-7574 FAX: 612-348-8228 TDD: 612-348-7367 www.co.hennepin.mn.us p �6�aee JUl L Hennepin County invites your city's participation in the examination of highway corridor and Mississippi River crossing options connecting I-94/TH 610 in Hennepin County to TH 10 in Anoka County. The purpose of the corridor/crossing study is to determine if a highway could connect the highway systems in Anoka and Hennepin Counties in a manner which relieves congestion along TH 101 and TH 169 and serves the area through which it traverses. The study is being sponsored by Anoka and Hennepin Counties and the Minnesota Department of Transportation (Mn/DOT) and is being led by the consulting firm of CH2M Hill. The study team will consist of a number of cities in Anoka, Hennepin, Sherburne and Wright Counties, and various regional and state agencies. The study is projected to begin in late July and be completed in the first quarter of 2002. In order to insure that your city's perspectives on this important issue are adequately represented, you are invited to appoint an elected official to the study's Policy Advisory Committee (PAC) and a staff member to the study's Technical Advisory Committee (TAC). Insofar as we hope to begin the PAC and TAC meetings within approximately one month, it is requested that the PAC and TAC appointments be made as soon as possible and that the appointees' names be forwarded to Jim Grube, Hennepin County's Transportation Department Director. Jim can be reached at 763-745-7507. Finally, I have enclosed a draft resolution of support for the study. I ask that you consider presenting such a resolution for City Council adoption. I believe an expression of support for the study will help validate our partnership to the citizens we serve. Hennepin County staff and I look forward to working with your city's appointees. Ay ely, kson Assistant County Administrator, Public Works and County Engineer Enclosure An Equal Opportunity Employer Recycled Paper DRAFT RESOLUTION SUPPORTING A NORTHWEST CORRIDOR STUDY BY ANOKA COUNTY, HENNEPIN COUNTY AND THE MINNESOTA DEPARTMENT OF TRANSPORTATION WHEREAS, the Comprehensive Plans of the Cities of Dayton, Maple Grove and Ramsey contemplate the expansion of the regional highway system in their cities to provide a Northwest Metro connection between I-94/TH 610 and TH 10; and WHEREAS, the Comprehensive Plans of the Cities of Dayton and Ramsey contemplate the addition of a Mississippi River crossing between their respective cities; and WHEREAS, the Anoka County Comprehensive Plan and Hennepin County Transportation Systems Plan also contemplate the expansion of a Northwest Metro roadway connection including a Mississippi River crossing between Dayton and Ramsey; and WHEREAS, Metropolitan Council planning documents, both past and present, have acknowledged that regional growth will necessitate an examination of the feasibility of constructing a Mississippi River crossing between TH 169 and TH 101; and WHEREAS, the Minnesota Department of Transportation, as jurisdictional authority of TH 169 and TH 101, considers it to be in its best interests to participate in the examination of the feasibility of constructing a Northwest Metro roadway connection of I-94/TH 610 and TH 10 via an additional Mississippi River crossing as a means of relieving current and projected traffic demands on current TH 169 and TH 101; and WHEREAS, the Minnesota Department of Transportation, Anoka County, and Hennepin County have expressed a willingness to finance and participate in a Northwest Metro Corridor and River Crossing Study; and WHEREAS, the close relationships Hennepin County and Anoka County enjoy with their member cities cause the cities to favor an Anoka County -Hennepin County partnership in taking lead responsibility for said Northwest Metro Corridor and River Crossing Study; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 046 fqO that Anoka County and Hennepin County are hereby requested to partner in taking shadred lead responsibility for the examination of options for a Northwest Metro Corridor and River Crossing alignment which connects TH 10 in Anoka County and 1-94/TH 610 in Hennepin County. BE IT FURTHER RESOLVED by the City Council of the City of 046n� that Anoka County and Hennepin County should cooperatively determine which local, regional and state agencies should be actively involved in the various policy and technical aspects of said study and engage those agencies as appropriate. \ \\\\1\Illli+l l I j x 871.0 t/ x 870.7 x 871.4 / / ► 1 I / // ►ill\\ \ \ 1 / x 871.0 \ \ III!l///////�// / 1 111111111///1 868.7 0 11 IVA 111//1 p or 17 /i 1 1 I \ 869.3 { 5.5 i + L 870.2 �l lx 870. / / �/ j' I x 11 // /� h l I 49 x 871.3 877.3 --- f —/` — ads—------� x i/ f / f \\ x 870.6 x 872.8 . 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MEMO Date: July 5, 2001 To: Mayor & Council From: City Administrator Mike Robertson Re: Second Amendment to PeopleService, Inc. Agreement Our agreement with PeopleService, Inc. to operate Otsego's water and wastewater systems has three phases (summary enclosed). The first phase was during the process leading up to the startup of the treatment plant, during which PeopleService provided assistance to us at an hourly rate. The second phase, which we are currently in, was after startup of the treatment plant but before sewage flows reached full operation levels. Our agreement was that the third phase would be triggered when the treatment plant exceeded 40,000 gallons per day or when the City of Dayton started sending flow to the plant. Since Dayton started send sewage a little over a month ago, PeopleService is requesting that the contract be amended to go to the third phase. A copy of the amendment is enclosed. I have been very satisfied with PeopleService's work and impressed with their knowledge and professionalism, and would recommend approval of the amendment subject to the City Attorney's comments. cc: City staff peopleserve.vvps f eopl `,'Sr'rvice INC OTSEGO, MINNESOTA PROPOSAL FOR WATER/WASTEWATER OPERATIONS 3/29/00 Phase One: Using a "management services" agreement, PeopleService will provide assistance (personnel only) at a cost of $35 per hour, including travel time. The duration of this phase will extend from the current time until flows into the new wastewater treatment plant are initiated, with the water system pumpage more or less paralleling the wastewater flows. This assistance would be at the request of the City of Otsego, through its City Administrator or street department staff, or its outside engineer. This assumes that during this time, wastewater flows are stored in the lift station, from which it is hauled to a nearby wastewater treatment facility by an outside service. Phase Two: Beginning with the time when flows into the new wastewater treatment plant are initiated, again with water system pumpage more or less paralleling the wastewater flows, a "full service" contract would be implemented. This contract would follow along the lines of our earlier proposal, and would include the cost of personnel, support personnel, supplies and materials, chemicals, utilities, maintenance, etc. As was proposed earlier, the monthly cost would include a predetermined amount for chemicals, electrical energy and maintenance. At the end of each twelve-month period, the City of Otsego would be billed for expenditures in excess of the budget, or they would receive a refund of any portion of the predetermined budget that remained. This phase would last until either the flows from the City of Dayton are being handled by the new wastewater treatment plant or until flows from Otsego alone reach 40,000 gallons per day (average over a 30 -day time period). Total cost of this phase on an annual basis is proposed to be $66,864 (water -$15,562, ww-$51,302) which includes $19,900 (water -$4,900, ww-$15,000) for chemicals, electrical energy and maintenance. The amount to be included each year for chemicals, electrical energy and maintenance would be agreed to by the parties at the beginning of each fiscal year, and would be based on historical expenditures and projected changes in flows. Phase Three: When the conclusion of phase two (as described above) is reached, the "full service" agreement would be adjusted back to PeopleService's original proposal, including the impact of any CPI -U escalation that would have occurred in the interim. This phase would continue until the end of the original term of the "full service" agreement (which is proposed to be five years) or a plant expansion is begun. At either of these two times, the parties would be required to negotiate a new "full service" agreement. Total cost of this phase on an annual basis is proposed to be $109,080 (water -$28,655, ww-$80,425) which includes $24,800 (water -$7,800, ww-$17,000) for chemicals, electrical energy and maintenance (both numbers taken from PeopleService's original proposal, but being subject to increases for the appropriate CPI -U escalation that would have taken place between now and then). As was the case with phase two, the amount included for chemicals, electrical energy and maintenance would be subject to additional billing for expenditures in excess of the predetermined budget, or to refund of any un -spent, budgeted dollars remaining at the end of each fiscal year. The amount to be included each year would again be subject to agreement of the parties at the beginning of each fiscal year. Note: With regard to the "cost sharing" arrangement between the City of Otsego and the City of Dayton, it would be easy and fairly administered if all of PeopleService's wastewater -compensation were to be considered a fixed cost, with the exception of the dollars spend on chemicals, electrical energy and maintenance costs. These costs, which are subject to additional billing or refund, should be considered variable costs. MEMO Date: July 5, 2001 To: Mayor & Council From: City Administrator Mike Robertson Re: Proposed Soccer Grant I met recently with Mike Roden of the Soccer Association about their request for City support for application for a State grant to irrigate the soccer fields at Prairie Park. Mike said that the Soccer Association was intending to contribute toward the City's matching portion of the grant. Mike said that the Soccer Association would be willing to contribute $10-15,000, and would like to do so over a 2-3 year period. An engineering study done over 4 years ago estimated that irrigating Prairie Park would cost approximately $150,000. This would require a well and storage tank to be constructed, since the City Hall well and storage tank is not big enough for the park. This would mean that Otsego would be seeking a grant of approximately $75,000 from the State, that the Soccer Association would be paying $10-15,000, and that the City would be responsible for $60-65,000 in costs. cc: City staff soccergrant.wps SECOND AMENDMENT TO O&M AGREEMENT WHEREAS, PeopleService, Inc., a Nebraska corporation (PeopleService), entered into an Agreement with the City of Otsego, Minnesota, dated April 10, 2000, for the management, operation, and maintenance of the Owner's water and wastewater treatment systems (the "Agreement"), WHEREAS, the "Effective Date" of the Agreement was delayed until December 1, 2000 in a writing by the parties, WHEREAS, the Agreement was amended in writing by the parties effective December 1, 2000, and WHEREAS, the parties desire that the Agreement be amended to recognize the increased flows and costs associated with the inception of flows from the City of Dayton as provided in Section 4.4 of the Agreement. NOW, THEREFORE the Agreement made and entered into between the City of Otsego, Minnesota and PeopleService dated April 10, 2000, for the management, operations, and maintenance of the Owner's water and wastewater treatment systems is amended as follows: ■ Paragraph 4.1 is hereby amended to increase the monthly payment from $5,572 to $9,090. ■ The "base amount" contained in Paragraph 4.3 is amended to be $18,592 for the thirteen months ended December 31, 2001. Future escalations will be done from an annual base amount of $19,800. Except as amended herein, and by amendment effective December 1, 2000, the Operations and Maintenance Agreement entered into by the parties on April 10, 2000 is hereby ratified and confirmed and shall remain in full force and effect in accordance with the terms and conditions thereof. This amendment shall be effective July 1, 2001, and is agreed to by both parties as evidenced by endorsement below. PEOPLESERVICE, INC. By: President .ttest: Assistant Secretary H:\www\amend\dodgecenter.wp6 OTSEGO, MINNESOTA Attest: Mayor City Administrator CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 97_1 CITY OF OTSEGO ORDINANCE PERTAINING TO DEFECTIVE OR MALFUNCTIONING EMERGENCY ALARM SYSTEMS WITHIN THE CITY OF OTSEGO. The City Council of the City of Otsego ordains as follows: Section 1. Any false alarm call to an individual, or business that, in the opinion of Fire Chief having jurisdiction over the area, was the result of a defective or malfunctioning alarm system will receive a notice outlining this policy, indicating a second false alarm call within the calendar year will subject the property owner to a $100.00 charge. The notice will also indicate that three or more false alarms during the calendar year will result in the property owner being charged $250.00 for each additional false alarm. Section 2. Any unpaid service charge shall be placed as a special assessment against the property pursuant to Minn. Stat. 429.101, after proper notice and hearing. ADOPTED this 13TH day of January, 1997. IN FAVOR: Lary Fournier, Mayor, Council Members Vern Heidner, Suzanne Ackermen OPPOSED: Virginia Wendel and Mark Berning No One CITY O OTSEGO Larry 'F urnie Mayor Elaine Beatt , City C rk Posted. 1/23/97 Published: 1/29/97 Elk River Star News