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City Council - 05/05/2020
AGENDA CITY COUNCIL WORKSHOP TUESDAY, MAY 5, 2020 5:30 – 6:30 PM, VIRTUAL MEETING CITY COUNCIL: Mayor Ron Case, Council Members Brad Aho, Kathy Nelson, Mark Freiberg, and PG Narayanan CITY STAFF: City Manager Rick Getschow, Police Chief Greg Weber, Fire Chief Scott Gerber, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Katie O’Connor Workshop – Virtual Meeting (5:30) I. 2019 AUDIT AND FINANCIAL STATEMENTS (5:30-6:10) II. CDBG-CV FUNDS (6:10-6:30) III. ADJOURNMENT WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2019 CliftonLarsonAllen LLPCity of Eden Prairie, Minnesota Audit Presentation -Workshop - Year Ending December 31, 2019 Meeting Date Tuesday, May 5, 2020 ©2019 CliftonLarsonAllen LLPCreate Opportunities Audit Team Your audit team consisted of the following professionals with extensive experience in governmental accounting and auditing: –Chris Knopik –Principal (16 years) –John Lorenzini –Manager (12 years) –Troy Gabler –Senior Associate (4 years) –Emma Casey, Greg Lundberg, Grace Trocinske – (Associates) 2 ©2019 CliftonLarsonAllen LLPCreate Opportunities Audit Results •Audit Opinion: –The City has an unmodified (clean) opinion for the December 31, 2019 financial statement audit. •Internal Controls over Financial Reporting: –Material Weaknesses –Audit Adjustment –Significant Deficiencies –None •Minnesota Legal Compliance: –No legal compliance findings 3 ©2019 CliftonLarsonAllen LLPCreate Opportunities Required Communications •New Accounting Policies: –GASB 84 –Fiduciary Activities •Accounting Estimates •Difficulties performing the audit (None) •Uncorrected misstatements (“passed adjustments”) •Corrected misstatements (“audit adjustments”) •Disagreements with management (None) 4 ©2019 CliftonLarsonAllen LLPCreate Opportunities General Fund Revenues, Expenditures and Fund Balance •Revenues -$2.6M (5.5%) over budget –Positive performance for building permits, property taxes and investment income. •Expenditures -$767K (2%) under budget –Comm Dev, Fire & Public Works •$893K increase in fund balance for 2019 General Fund Financial Results 5 Year $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 Assigned/Unassigned Fund Balance Total Expenditures Total Revenues 2014 2015 2016 2017 2018 2019 ©2019 CliftonLarsonAllen LLPCreate Opportunities Composition of Unassigned Fund Balance •Policy –Working Capital 50% of next year’s budgeted tax revenue –Budget Stabilization 15% of next year’s budgeted expenditures –Additional to cover planned use of fund balance in next year’s budget –Unassigned = fund balance not included in other 3 categories General Fund Financial Results 6 $6,239,620 $6,482,372 $6,656,697 $5,774,218 $7,065,258 $7,298,618 $15,525,921 $15,999,437 $16,479,421 $16,817,942 $17,322,105 $17,979,870 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 2014 2015 2016 2017 2018 2019 Unassigned Budget Deficits Budget Stabilization Working Capital ©2019 CliftonLarsonAllen LLPCreate Opportunities Total General Fund Revenues •GF Revenues up $1.7M or 4%, as compared to 2018. •Property taxes approximately 71%. •Charges for services approximately 12%. •Licenses and permits approximately 10%. •Intergovernmental approximately 4% •Other 3% General Fund Financial Results 7 71%72%73%73%72%71% 12%11%9%8% 10%10% 3%3%3%3% 3%4% 12%11%12%13% 13%12% 2%2%3%3% 3%3% $- $4,000,000 $8,000,000 $12,000,000 $16,000,000 $20,000,000 $24,000,000 $28,000,000 $32,000,000 $36,000,000 $40,000,000 $44,000,000 $48,000,000 2014 2015 2016 2017 2018 2019 Taxes Licenses and Permits Intergovernmental Charges for Services Other Revenues ©2019 CliftonLarsonAllen LLPCreate Opportunities Total General Fund Expenditures •GF expenditures up $781K, or 2%, as compared to 2018 •Admin –9% •Comm Devel –5% •Police –33% •Fire –13% •Public Works –13% •Parks and Rec –27% General Fund Financial Results 8 11%9%11%9%10%9% 5%5%5%5%5%5% 14%14%14%14%13%13% 32%32%32%32%32%33% 14%14%13%14%13%13% 25%25%26%26%27%27% $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2014 2015 2016 2017 2018 2019 Administration Community Development Public Works Police Fire Parks and Recreation Capital Outlay Debt Service ©2019 CliftonLarsonAllen LLPCreate Opportunities Water Fund Operations •Operating revenues decreased 8.6% from prior year (decrease in usage) •Operating expenses decreased 10.6% from prior year •Cash flow provided by operations $1.7M in 2019 •Total cash and investments balance of $17M at 12/31 Financial Results 9 $(3,000,000) $(2,000,000) $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2015 2016 2017 2018 2019 Operating Revenues Operating Expenses (excludes depreciation) Depreciation Expense Operating Income (before depreciation) Operating Income ©2019 CliftonLarsonAllen LLPCreate Opportunities Wastewater Fund Operations •Operating revenues increased 5.8% from prior year (rate increases partially offset by decreased usage) •Operating expenses up 4.3% from prior year •Cash flow provided by operations was $300K in 2019. •Total cash and investments balance of $5.6M at 12/31 Financial Results 10 $(3,000,000) $(2,000,000) $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2015 2016 2017 2018 2019 Operating Revenues Operating Expenses (excludes depreciation) Depreciation Expense Operating Income (before depreciation) Operating Income ©2019 CliftonLarsonAllen LLPCreate Opportunities Stormwater Fund Operations •Operating Revenues up 15% from prior year (rate increase) •Operating Expenses up 2% from prior year •Cash flow provided by operations $1.8M in 2019. •Total cash and investments balance of $3.6M at 12/31 •Advance of $1.5M for the Burr Ridge project made in 2015 paid down to $786K Financial Results 11 $(1,000,000) $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2014 2015 2016 2017 2018 2019 Operating Revenues Operating Expenses (excludes depreciation) Depreciation Expense Operating Income (before depreciation) Operating Income ©2019 CliftonLarsonAllen LLPCreate Opportunities Liquor Fund Operations •Sales increased 2.1% ($224K) •$800k transfers to the Capital Improvement/ Maintenance Fund •Gross Profit is up $100K, or 3.5% •Net Profit is up $98K, or 12.7% from 2018 (Excluding GASB 68 pension expense, depreciation and transfer out) Financial Results 12 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 2014 2015 2016 2017 2018 2019 Gross Sales Cost of Sales Transfers Out Net Profit (Excl Depreciation, Pension and Transfer expenses) ©2019 CliftonLarsonAllen LLPCreate Opportunities Liquor Fund Operations (Continued) •Gross profit percentage up slightly from prior year. •2018 gross profit percentage for the 7- County Metro area was 26.5 percent •2019 gross profit percentage for the 7- County Metro area is unknown at this time. Financial Results 13 26.2% 26.5%26.1% 26.6%26.9% 27.3% 25.9%25.3%25.6% 26.0%26.5% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% 30.0% 2014 2015 2016 2017 2018 2019 Gross Profit Percentage 7 County Metro Area (Offsale only) ©2019 CliftonLarsonAllen LLPCreate Opportunities Estimated Market Values •$1.6B increase from 2010 to 2020 •2019 increased $454M from 2018 to $10.7B •2020 estimates to $11.1B Financial Results 14 $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ©2019 CliftonLarsonAllen LLPCreate Opportunities Tax Capacity and Rates •Inverse relationship between Tax Capacity and Tax Capacity Rate •Net Levy includes General Fund, Capital and Debt Service Levy •2018 tax rate 32.34% •2019 tax rate 31.52% •2020 tax rate 31.48% Financial Results 15 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tax Capacity Net Levy Tax Capacity Rate ©2019 CliftonLarsonAllen LLPCreate Opportunities Tax paid on median home value by City •The City continues to have a lower tax rate than surrounding cities Financial Results 16 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 City Tax 2019 ©2019 CliftonLarsonAllen LLPCreate Opportunities Revenues Per Capita •Per capita revenues increased $218 from prior year •Per capita revenues were $244 more than cities of comparable size. •Compared to other cities the size of Eden Prairie, largest differences is between intergovernmental and property taxes •Note that Eden Prairie has not received LGA since 2003. Financial Results 17 State-Wide Year December 31, 2018 2017 2018 2019 Population 20,000-100,000 63,163 63,726 63,456 Property Taxes 493$ 559$ 585$ 601$ Tax Increments 43 56 36 31 Franchise Fees and Other Taxes 50 50 61 65 Special Assessments 57 54 50 45 Licenses and Permits 47 42 64 77 Intergovernmental Revenues (Non-LGA)119 123 47 232 Intergovernmental Revenues (LGA)38 - - - Charges and Fees 112 91 94 97 Other 49 56 97 104 1,008$ 1,031$ 1,034$ 1,252$ City of Eden Prairie ©2019 CliftonLarsonAllen LLPCreate Opportunities Expenditures Per Capita •Per capita total expenditures increased $229 from 2018, primarily due to capital expenditures •Per capita current expenditures are $87 more than other similar sized cities in the State. This is primarily due to the City’s parks and recreation, public safety, and community development programs. Financial Results 18 State-Wide Year December 31, 2018 2017 2018 2019 Population 20,000-100,000 63,163 63,726 63,456 Current: Administration 104$ 64$ 70$ 70$ Community Development 60 97 81 75 Police 207 224 230 242 Fire 87 97 95 92 Public Works 108 98 94 95 Parks and Recreation 104 179 191 199 Other 16 - - - Total Current 686$ 759$ 761$ 773$ Capital Outlay and Construction 302$ 139$ 154$ 380$ Debt Service:139$ 108$ 78$ 69$ Total Expenditures Per Capita 1,127$ 1,006$ 993$ 1,222$ City of Eden Prairie ©2019 CliftonLarsonAllen LLPCreate Opportunities •Other Financial Highlights –Financial statements and the required OSA Financial Reporting form will both be submitted to the required state agency before the deadline June 30, 2020. –Comprehensive Annual Financial Report will be submitted to the GFOA before the deadline June 30, 2020. Financial Results 19 ©2019 CliftonLarsonAllen LLPCreate Opportunities •Effective December 31, 2020: –Governmental Accounting Standards Board Statement No. 87 ◊Leases Emerging Issues 20 ©2019 CliftonLarsonAllen LLPCreate Opportunities City Accomplishments •The City has a bond rating of AAA. –Out of 357 cities analyzed within Minnesota, only about 28 have this rating. •Last year, for the 2018 CAFR audit, the City was awarded the GFOA Certificate for Excellence in Financial Reporting. –The City has received for every year since 1990! 21 ©2019 CliftonLarsonAllen LLPCLAconnect.com Thank you to all for helping to get this audit completed timely and for allowing us to serve you! Contact Information: Chris Knopik, CPA 612-397-3266 Chris.Knopik@CLAconnect.com John Lorenzini, CPA 612-397-3268 John.Lorenzini@CLAconnect.com 22 CDBG-CV City Council Discussion Council Workshop 5/5/20 What is this Resource? $168,055 awarded to EP under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Awarded under the special category CDBG-CV Aims to “prioritize the unique needs of low and moderate-income persons, as well as the development of partnerships between all levels of government and the private for-profit and non-profit sectors.” What are the Rules? Begin addressing COVID-related needs as quickly as possible Public Services cap of 15% is waived Activity must be directly tied to a COVID-related need Can be used to reimburse activities already undertaken, if they prevented, prepared for, or responded to Coronavirus “Spend by” date yet to be announced Potential Eligible Expenditures Financial assistance for rent, mortgage, utilities, or arrears Food support expenses Senior services Staff costs to do screening, determine eligibility and make referrals Staffing for increased food assistance needs Personal protective equipment (PPE) Staff Action to Date Developed aggressive timeline for City acceptance of funds, issuance of RFP and amendment to Annual Action Plan Solicited proposals from existing and potential partners Reviewed applications for match with funding source aims Bringing cover letter & resolution to this evening’s Council meeting Action Plan amendment ready to be submitted after City action RFPs Received Response from PROP—requested $90,000 BUDGET/SOURCE OF FUNDS Component CDBG Other (Identify)Total Housing Direct Services $50,000 $30,000 (approved CDBG funds) $15,000 Pax Christi $70,000 (PROP General Fund) $165,000 Increased Staffing for Housing $16,000 $4,000 (PROP General Fund)$20,000 COVID-related fresh produce purchases $24,000 $8,000 (EPCF) $8,000 (Hunger Solutions) $30,000 (PROP General Fund) $70,000 Three door cooler to store additional food $5,255 N/A $5,255 Totals $95,255 $100,000 $195,255 RFPs Received Response from Senior Community Services –requested $880 Senior Community Services application requests PPE for use in its HOME Program If both fully funded, leaves remaining balance of $61,920 (balance less $10,000 in administration funds) to be deployed toward other activities and/or organizations Discussion Thoughts on RFP responses & match with funding purpose? Thoughts on different / additional activities to pursue? Thoughts on when to deploy additional resources? Thoughts on other organizations that can aid in response? AGENDA EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, MAY 5, 2020 7:00 PM, VIRTUAL MEETING CITY COUNCIL: Mayor Ron Case, Council Members Brad Aho, Kathy Nelson, Mark Freiberg, and PG Narayanan CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, City Attorney Maggie Neuville, and Council Recorder Jan Curielli I. CALL THE MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS / PRESENTATIONS A. 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) B. SENIOR AWARENESS MONTH PROCLAMATION C. NATIONAL POLICE WEEK PROCLAMATION V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS VI. MINUTES A. CITY COUNCIL MEETING HELD TUESDAY, APRIL 21, 2020 VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR A. CLERK’S LICENSE LIST B. ADOPT RESOLUTION APPROVING FINAL PLAT OF EDEN RIDGE C. APPROVE FIRST AMENDMENT TO LEASE AGREEMENT WITH IPP – STORES, LLC DBA CHUCK & DON’S PET FOOD & SUPPLIES D. APPROVE TERMINATION OF DECLARATION OF EASEMENTS RELATED TO CASTLE RIDGE AND AUTHORIZE EXECUTION OF CITY CONSENT AND JOINDER E. ADOPT RESOLUTION DESIGNATING OFFICIAL CITY NEWSPAPER CITY COUNCIL AGENDA May 5, 2020 Page 2 F. APPROVE AGREEMENT WITH BLUE WATER SCIENCE FOR 2020 WATER QUALITY MONITORING PROGRAM G. AWARD CONTRACT TO PARROTT CONTRACTING, INC. FOR KIMBERLY LANE-CHENNAULT WAY SPCS PROJECT H. AWARD CONTRACT TO KEVIN CASEY LLC FOR KRISTIE LANE SPCS PROJECT I. APPROVE GROUNDWATER CONSERVATION GRANT FUNDING AGREEMENT WITH RILEY PURGATORY BLUFF CREEK WATERSHED DISTRICT J. APPROVE RAILROAD CROSSING AGREEMENT WITH TC&W FOR BIRCH ISLAND ROAD K. AUTHORIZE CONTRACT WITH NATIVE RESOURCES FOR MAINTENANCE OF NATIVE PLANTING AREAS IX. PUBLIC HEARINGS / MEETINGS A. VILLAS AT SMITH VILLAGE by Halley Land Corp. Resolution for Comprehensive Guide Plan Change on 1 acre; Resolution for PUD Concept Review on 1 acre; First Reading of an Ordinance for PUD District Review with waivers and Zoning District Change on 1 acre; Resolution for Preliminary Plat on 1 acre (Resolution for Comprehensive Plan Change; Resolution for PUD Concept Review; Ordinance for Zoning District Change; Resolution for Preliminary Plat) X. PAYMENT OF CLAIMS XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS, AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS B. REPORT OF CITY MANAGER C. REPORT OF COMMUNITY DEVELOPMENT DIRECTOR 1. CDBG-CV Funds (Resolution) CITY COUNCIL AGENDA May 5, 2020 Page 3 D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT ANNOTATED AGENDA DATE: May 1, 2020 TO: Mayor and City Council FROM: Rick Getschow, City Manager RE: City Council Meeting for Tuesday, May 5, 2020 ___________________________________________________________________________________________ TUESDAY, MAY 5, 2020 7:00 PM, VIRTUAL MEETING I. CALL THE MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION Open Podium is an opportunity for Eden Prairie residents to address the City Council on issues related to Eden Prairie city government before each Council meeting, typically the first and third Tuesday of each month, from 6:30 to 6:55 p.m. in the Council Chamber. If you wish to speak at Open Podium, please contact the City Manager’s Office at 952.949.8412 by noon of the meeting date with your name, phone number, and subject matter. If time permits after scheduled speakers are finished, the Mayor will open the floor to unscheduled speakers. Open Podium is not recorded or televised. If you have questions about Open Podium, please contact the City Manager’s Office. IV. PROCLAMATIONS / PRESENTATIONS A. 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) Synopsis: Minnesota statutes require that the City prepare an annual financial report and statements in accordance with Generally Accepted Accounting Principles. The attached report meets these requirements. The report was prepared by the Finance Division and audited by the independent auditing firm of Clifton Larson Allen. Clifton Larson Allen issued an unmodified opinion which is the highest level of opinion the City can receive and means the auditor believes the financial statements are fairly presented in all material respects. Chris Knopik, principal for the accounting firm will make a presentation of the financial report. MOTION: Move to accept the 2019 Comprehensive Annual Financial Report (CAFR). B. SENIOR AWARENESS MONTH PROCLAMATION ANNOTATED AGENDA May 5, 2020 Page 2 The Mayor will read the proclamation. C. NATIONAL POLICE WEEK PROCLAMATION The Mayor will read the proclamation. V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Move to approve the agenda. VI. MINUTES MOTION: Move to approve the following City Council minutes: A. CITY COUNCIL MEETING HELD TUESDAY, APRIL 21, 2020 VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR MOTION: Move approval of items A-K on the Consent Calendar. A. CLERK’S LICENSE LIST B. ADOPT RESOLUTION APPROVING FINAL PLAT OF EDEN RIDGE C. APPROVE FIRST AMENDMENT TO LEASE AGREEMENT WITH IPP – STORES, LLC DBA CHUCK & DON’S PET FOOD & SUPPLIES D. APPROVE TERMINATION OF DECLARATION OF EASEMENTS RELATED TO CASTLE RIDGE AND AUTHORIZE EXECUTION OF CITY CONSENT AND JOINDER E. ADOPT RESOLUTION DESIGNATING OFFICIAL CITY NEWSPAPER F. APPROVE AGREEMENT WITH BLUE WATER SCIENCE FOR 2020 WATER QUALITY MONITORING PROGRAM G. AWARD CONTRACT TO PARROTT CONTRACTING, INC. FOR KIMBERLY LANE-CHENNAULT WAY SPCS PROJECT H. AWARD CONTRACT TO KEVIN CASEY LLC FOR KRISTIE LANE SPCS PROJECT I. APPROVE GROUNDWATER CONSERVATION GRANT FUNDING AGREEMENT WITH RILEY PURGATORY BLUFF CREEK ANNOTATED AGENDA May 5, 2020 Page 3 WATERSHED DISTRICT J. APPROVE RAILROAD CROSSING AGREEMENT WITH TC&W FOR BIRCH ISLAND ROAD K. AUTHORIZE CONTRACT WITH NATIVE RESOURCES FOR MAINTENANCE OF NATIVE PLANTING AREAS IX. PUBLIC HEARINGS / MEETINGS A. VILLAS AT SMITH VILLAGE by Halley Land Corp. Resolution for Comprehensive Guide Plan Change on 1 acre; Resolution for PUD Concept Review on 1 acre; First Reading of an Ordinance for PUD District Review with waivers and Zoning District Change on 1 acre; Resolution for Preliminary Plat on 1 acre (Resolution for Comprehensive Plan Change; Resolution for PUD Concept Review; Ordinance for Zoning District Change; Resolution for Preliminary Plat) Synopsis: The applicant is proposing to develop a 1-acre parcel into 6 single- family detached villas. The 1-acre parcel is located within the Smith Village neighborhood just east of Eden Prairie Road on Glory Lane. The parcel was previously approved for six townhome units (two buildings with 3 units in each) as part of the overall Smith Village development. The Smith Village project also includes a 100-unit senior cooperative and 58 units of workforce housing. No changes are proposed to those portions of the project area. The entire Smith Village development is currently guided Medium High Density Residential and zoned RM-2.5. The applicant is now requesting to revise the approved townhome plan to include six detached single-family villa homes on individual lots rather than six townhomes. The location, access, parking, density, utilities, stormwater management and landscaping remains consistent with the previously approved plans. The only difference is that the plan will include 6 individual lots rather than attached units. MOTION: Move to: Close the Public Hearing; and Adopt a Resolution for a Guide Plan Change from Medium High Density Residential to Medium Density Residential on 1 acre; and Adopt a Resolution for a Planned Unit Development Concept Review on 1 acre; and Approve the 1st Reading of an Ordinance for a Planned Unit Development District Review with waivers and a Zoning District Change from RM-2.5 to R1-9.5 on 1 acre; and Adopt a Resolution for a Preliminary Plat of 3 lots into 7 lots on 1 acre ANNOTATED AGENDA May 5, 2020 Page 4 X. PAYMENT OF CLAIMS MOTION: Move approval of Payment of Claims as submitted (Roll Call Vote). XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS, AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS B. REPORT OF CITY MANAGER C. REPORT OF COMMUNITY DEVELOPMENT DIRECTOR 1. CDBG-CV Funds (Resolution) Synopsis: The office of Housing and Urban Development (HUD) has announced that the City of Eden Prairie has been allocated $168,055 in Community Development Block Grant Coronavirus (CDBG-CV) funds to be used to prevent, prepare for, and respond to the coronavirus through emergency assistance programs through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The City of Eden Prairie has developed an Amendment to their 2019 CDBG Action Plan for the use of CDBG-CV funds, and held a public comment period of April 30, 2020 to May 5, 2020, to obtain the views of citizens on the substantial amendment. MOTION: Move to adopt the Resolution approving the Substantial Amendment to the 2019 CDBG Annual Action Plan to allocate $168,055 of Community Development Block Grant Coronavirus funds. D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY ANNOTATED AGENDA May 5, 2020 Page 5 XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Move to adjourn the City Council meeting. CITY COUNCIL AGENDA SECTION: Presentations DATE: May 5, 2020 DEPARTMENT/DIVISION: Sue Kotchevar, Office of the City Manager/Finance ITEM DESCRIPTION: 2019 Comprehensive Annual Financial Report (CAFR) ITEM NO.: IV.A. Requested Action Move to: Accept the 2019 Comprehensive Annual Financial Report (CAFR). Synopsis Minnesota statutes require that the City prepare an annual financial report and statements in accordance with Generally Accepted Accounting Principles. The attached report meets these requirements. The report was prepared by the Finance Division and audited by the independent auditing firm of Clifton Larson Allen. Clifton Larson Allen issued an unmodified opinion which is the highest level of opinion the City can receive and means the auditor believes the financial statements are fairly presented in all material respects. Chris Knopik, principal for the accounting firm will make a presentation of the financial report. Attachments 2019 CAFR 2019 Internal Control Letter For the Year Ended December 31, 2019 City of Eden Prairie, Minnesota 1 This page is intentionally left blank 2 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF EDEN PRAIRIEMINNESOTA For The Year Ended December 31, 2019Rick Getschow, City Manager Prepared by THE FINANCE DIVISION Sue Kotchevar, Chief Financial Officer 3 City of Eden Prairie, Minnesota For the Year Ended December 31, 2019 Table of Contents Page Introductory Section Letter of Transmittal ....................................................................................................................................................... 8 GFOA Certificate of Achievement ........................................................................................................................... 16 Organizational Chart .................................................................................................................................................... 17 List of Principal Officials ............................................................................................................................................. 18 Financial Section Independent Auditors’ Report .................................................................................................................................. 21 Management’s Discussion and Analysis ................................................................................................................ 24 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ............................................................................................................................... 38 Statement of Activities ..................................................................................................................................... 40 Fund Financial Statements Balance Sheet-Governmental Funds .......................................................................................................... 44 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................................................................................. 47 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................................................................................ 48 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................. 50 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ....................................................................... 51 Statement of Net Position – Proprietary Funds .................................................................................... 54 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ......... 55 Statement of Cash Flows – Proprietary Funds ....................................................................................... 56 Statement of Fiduciary Net Position ......................................................................................................... 58 Statement of Changes in Fiduciary Net Position ................................................................................... 59 Notes to Financial Statements ............................................................................................................................. 62 Required Supplemental Information Modified Approach for Infrastructure Assets ......................................................................................... 108 Schedule of Changes in the City’s Total OBEB Liability and Related Ratios .............................. 109 Schedule of Proportionate Share of Net Pension Liability Public Employees General Employees Retirement Fund .................................................................. 110 Public Employees Police and Fire Fund .................................................................................................... 111 Eden Prairie Fire Relief .................................................................................................................................... 112 Schedule of Contributions Public Employees General Employees Retirement Fund .................................................................. 113 Public Employees Police and Fire Fund .................................................................................................... 114 Eden Prairie Fire Relief .................................................................................................................................... 115 4 City of Eden Prairie, Minnesota For the Year Ended December 31, 2019 Notes to Required Supplemental Information Notes to Schedule of Changes in Net Pension Liabilities and Related Ratios ........................... 116 Combining Fund Statements Combining Balance Sheet – Nonmajor Governmental Funds .......................................................... 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ............................................................................. 132 Combining Statement of Net Position – Internal Service Funds ..................................................... 140 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds .................................................................................................... 142 Combining Statement of Cash Flows – Internal Service Funds ....................................................... 144 Combining Statement of Fiduciary Net Position .................................................................................. 150 Combining Statement of Changes in Fiduciary Net Position ............................................................ 151 Statistical Section Government-wide Net Position by Category ........................................................................................... 155 Changes in Net Position - Total ..................................................................................................................... 156 Changes in Net Position – Governmental Activities ............................................................................. 157 Changes in Net Position – Business-type Activities ............................................................................. 158 Fund Balances – Governmental Funds ....................................................................................................... 159 Changes in Fund Balances – Governmental Funds ............................................................................... 160 Assessed/Tax Capacity Value and Estimated Market Value of Property .................................... 161 Direct and Overlapping Property Tax Rates ............................................................................................ 162 Principal Property Taxpayers ........................................................................................................................ 163 Property Tax Levies and Collections .......................................................................................................... 164 Legal Debt Margin ............................................................................................................................................... 165 Ratios of Outstanding Debt by Type ........................................................................................................... 166 Ratios of General Bonded Debt Outstanding ........................................................................................... 167 Computation of Direct and Overlapping Bonded Debt ....................................................................... 168 Demographic and Economic Statistics ....................................................................................................... 169 Principal Employers ........................................................................................................................................... 170 Employees by Function .................................................................................................................................... 171 Operating Indicators .......................................................................................................................................... 172 Capital Assets Statistics by Function .......................................................................................................... 173 5 This page is intentionally left blank 6 INTRODUCTORY SECTION 7 May 5, 2020 To the Honorable Mayor, Members of the City Council and the Citizens of the City of Eden Prairie: The comprehensive annual financial report of the City of Eden Prairie, Minnesota, for the year ended December 31, 2019, is hereby submitted. The report was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board and meets the requirements of the State Auditor’s Office. The report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all information presented within this report. To provide a reasonable basis for making these representations, management of the City has established internal controls designed to protect the City’s assets from loss, theft or misuse and to provide sufficient information for the preparation of these financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the City’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that to the best of our knowledge and belief this financial report is complete and reliable in all material respects. The City’s financial statements have been audited by CliftonLarsonAllen LLP, Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2019, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates used by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified opinion that the City’s financial statements, for the year ended December 31, 2019, are fairly presented in conformity with GAAP. The independent auditors’ report is present in the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found in the financial section of this report immediately following the report of the independent auditors. 8 City Profile Eden Prairie is a suburban community of 63,456 people located in the southwest corner of Hennepin County in a setting of rolling hills and picturesque lakes and creeks. Eden Prairie has a convenient location, a comprehensive system of highways, and is a short distance from downtown Minneapolis and St. Paul and the Minneapolis-St. Paul International Airport. Incorporated in 1974 as a city, the City of Eden Prairie operates under a Statutory Plan B form of government. Policymaking and legislative authorities are vested in the governing council, which consists of a mayor and a four-member council. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the government's manager and attorney. The council is elected on a nonpartisan basis. The mayor and council members are elected to four-year staggered terms. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and to assign appropriate responsibility and authority to City staff for the efficient and effective delivery of City services. With a staff of around 276 regular, full-time equivalent employees, the City provides its residents and businesses with a full range of municipal services consisting of police and fire protection, street maintenance, recreation programs, park maintenance, community and economic development, building inspections, and a water, wastewater and storm water services. The City is also financially accountable for the Housing and Redevelopment Authority (HRA), which is included in the City’s financial statements as a blended component unit. Additional information on the HRA is located in Note 1 in the notes to the financial statements. The biennial budget serves as the foundation for the City’s financial planning and control. Departments submit budget requests to Finance in May and the City Manager presents the proposed budget to the City Council for review prior to September 30th of each year. A budget workshop is usually held with the City Council in June or July. The City Council holds a public meeting on the proposed budget and adopts the final budget in December each year. During the first year of the two-year budget process, both years’ budgets are developed and the City Council adopts the first year’s budget. During the second year of the two-year budget process, budget work is minimized. Staff updates the budget for any significant budget developments and the council then reviews and adopts the second year budget. The budget is prepared by department and division. The City’s directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. Any changes in the total budget must be approved by the City Council. 9 Economic Conditions and Outlook The City of Eden Prairie is located in the southwest corner of the Minneapolis/St. Paul Metropolitan area. With the last update of the comprehensive plan and the trend towards condensed multi-family housing in the downtown area, it is expected that Eden Prairie’s population will grow to 82,400 by 2040, a 29% increase from the 2018 population. Below summarizes City market value since 2011. The City’s tax base increased from $10.2 billion to $10.6 billion from 2018 to 2019. In 2020, the market value increased to $11.1 billion. 0 2,000,000,000 4,000,000,000 6,000,000,000 8,000,000,000 10,000,000,000 12,000,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Market ValueYear 10 The business environment in Eden Prairie is good. Eden Prairie’s unemployment rate is 2.2%, which is less than the State and Federal rate of 3.5%. Business continues to invest in Eden Prairie including the following this past year: •Castle Ridge, $62,241,123, New Building •Scheel’s Sporting Goods, $21,113,000, New Commercial •SouthWest Station, $20,668,000 New Commercial •Trail Pointe Apartments, $11,292,859, New Multi-Family •Tennant, $6,200,000, Interior Remodel •Eden Prairie Library, $5,136,000, Remodel •SouthWest Bus Garage, $3,180,400, Addition •Golden Triangle Station, $2,110,000, New Commercial •Caliber Collision, $1,900,000, New Commercial •International School, $1,900,000, Addition •DriSteem, $1,700,000, Addition •City West Station, $1,615,000 New Commercial •Acist Medical System $1,397,000, Interior Finish •O’Reilly Auto, $1,386,520, New Commercial •Innovative Construction, $1,377,060, Exterior Remodel •Mid Minnesota Bldrs, $1,254,000 New HangarCastle Ridge is a new 511,300 square foot five story which replaces a previous building that was torn down. The project includes 148 independent units, 40 assisted living units, 18 memory care units and 72 skilled care beds. The building also includes over 31,000 square feet of Town Center space which features a fitness center, swimming pool, dining area, club room, hair salon, massage room, community room and a chapel. Scheel’s is a redevelopment of a previous Sears site into a new Scheel’s store. The store will be a collection of entertainment venues, specialty shops and boutiques staffed with experts who focus on their passions. The 240,000-square-foot Scheel’s Retail Shopping Adventure will showcase Minnesota’s largest selection of sports, fashion and footwear under one roof. It is expected to open in July of 2020. Southwest Light Rail Transit has been issued building permits for the SouthWest Station and parking facility, the Golden Triangle Station, and the City West Station. Trail Pointe Ridge has been issued a building permit for a new 58 unit apartment building. The $11 million project is comprised of a mix of one, two and three bedroom units. The four story apartment building totals 85,578 square feet plus 49 below grade parking stalls. The building has a 717 square foot community room and several outdoor amenities. Eden Prairie serves as the corporate headquarters location for many national and international businesses including CH Robinson World Wide, Tennant Company, Optum, numerous multi-tenant office building partnerships, Lifetouch/ShutterFly Inc., United 11 Natural Foods Inc. (UNFI), American Family Mutual Insurance, Starkey Labs, MTS systems Corporation, and others. Eden Prairie also has key locations for retailing including the City’s mall which has approximately 1.5 million square feet of shopping. The mall is part of the City’s “Major Center Area” or downtown. Stores include a 160,000 square foot Von Maur Department Store, a Barnes and Noble Bookstore, an 18-screen AMC Movie Theater, and numerous restaurants. Light Rail Transit (LRT) The Southwest Light Rail Transit (LRT) line is a high-frequency train serving Eden Prairie, Minnetonka, Hopkins, St. Louis Park, and Minneapolis. It is part of the Green Line, which includes the Central Corridor LRT. Therefore, riders of Southwest LRT will be able to continue into St. Paul via the Central Corridor without changing trains. The Southwest LRT line will also connect to other rail lines (Hiawatha, Northstar, and the future Bottineau) and high-frequency bus routes in downtown Minneapolis, providing access to the University of Minnesota, Minneapolis-St. Paul Airport, Mall of America, the State Capitol, downtown St. Paul, Big Lake, and eventually the northern Twin Cities suburbs. Connections to other rail lines will occur at the Intermodal Station in downtown Minneapolis. Construction began in 2019 with expected completion in 2023. There are currently four Light Rail stations under construction in Eden Prairie. Eden Prairie’s LRT projects include planning and development of the stations, park-and-ride facilities, local roadway improvements, sidewalks, trails, streetscape and other infrastructure. The station areas also have great potential for additional housing, employment and shopping opportunities via infill or redevelopment. Transportation Infrastructure In 2019, the City invested approximately $36,000,000 in transportation infrastructure paid from various funding sources. Projects included: •County Road 61/Flying Cloud Drive from Highway 101 in Chanhassen to CharlsonRoad in Eden Prairie. This reconstruction project will improve the driving surface andsafety along the corridor. •Preserve Boulevard project, which includes intersection improvements, additionalturn lanes and new landscaping. •Eden Prairie Road and Flying Cloud Drive project which includes a new roadalignment and street and storm water improvements.New Water Storage Reservoir The City has identified that additional water storage is necessary to support the expansion of water service for future growth areas and maintaining adequate water supply under 12 emergency situations. Construction of a new four million gallon 140-foot diameter pre-stressed concrete ground storage reservoir and associated pump station started in 2019. Construction will be completed in 2020. The City will use $4,920,000 in bond proceeds and $4,500,000 in water access revenue to pay for the project. Long-term Financial Planning The City has implemented various financial policies to guide the Council and staff when making financial decisions. This helps to ensure the long-term stability and flexibility of City finances and operations. These policies include the following: •The original budget should be balanced with revenues equal to expenditures, •One-time revenues will be used for one-time expenditures, •The City will maintain fund balance for working capital in the general fund at 50% ofthe next year’s budgeted tax revenue, •The City will also maintain 10% of the next year’s budget in fund balance for budgetstabilization and 5% of the next year’s budget for budget balancing in the generalfund, •The City will confine long-term debt to capital improvements or projects that cannotbe financed from current revenues, and •The City will maintain a ten-year capital improvement plan to provide for capitalasset acquisition, maintenance, replacement, and retirement.The City’s healthy economic base and its sound financial condition have helped maintain the highest bond rating possible from Moody’s Investors Services and Standard and Poor’s. Major Initiatives Housing Task Force The Eden Prairie Housing Task Force was established to address lifecycle housing, inclusive and affordable housing, and other housing options in Eden Prairie. The City Council directed the task force to focus on three phases of work to be completed over a nine to twelve month period: gathering data, researching other cities' housing programs, procedures, resources and best practices, and formulating a list of options and best practices to present to the City Council. The Task Force’s mission is to make recommendations to the Eden Prairie City Council for policies and actions that can be taken in order to meet the housing needs of a diverse community and maintain Eden Prairie as a desirable place to live. The task force met throughout 2019, and will bring forward information and options in 2020. 13 Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Eden Prairie for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2018. The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such comprehensive annual financial report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City of Eden Prairie has received a Certificate of Achievement every year since 1990. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. In addition, the Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation award to the City of Eden Prairie for its Two Year Budget for the fiscal years beginning January 1, 2018 and 2019. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and a communications device. The award is valid for a period of two years only. The City of Eden Prairie has received a Distinguished Budget Presentation award for every budget since 1998. Also, the Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Eden Prairie for its Popular Annual Financial Report for the fiscal year ended December 31, 2018. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The City of Eden Prairie has received the award annually since 1998. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA. 14 Acknowledgements We would like to thank the Mayor and Council Members for their continued support in planning and conducting the financial operations of the City in a responsible and progressive manner. We would also like to express our appreciation to the employees of the Finance Division for their contribution to the preparation of this report. Respectfully submitted, Rick Getschow Sue Kotchevar City Manager Chief Financial Officer 15 16 City of Eden Prairie, Minnesota For the Year Ended December 31, 2019 City Council City Manager Administration Administrative Services City Clerk Facilities Human Resources & Support Services Information Technology Communications Finance & Liquor Operations Community Development Assessing Economic Development Housing & Community Services Planning Public Works Engineering Fleet Services Streets Maintenance Utilities Police Investigations Patrol Support Fire Building Inspections Fire Prevention Fire Suppresion Parks & Recreation Community Center Parks & Natural Resources Recreation Services 17 City of Eden Prairie, Minnesota For the Year Ended December 31, 2019 Principal Officials Elected Officials: Mayor (Term expiration 12/31/22) Ron Case Council Member (Term expiration 12/31/20) Brad Aho Council Member (Term expiration 12/31/22) Mark Freiberg Council Member (Term Expiration 12/31/20) PG Narayanan Council Member (Term expiration 12/31/22) Kathy Nelson Appointed Officials: City Manager Rick Getschow City Attorney Richard Rosow Departments: Chief of Police Greg Weber Community Development Director Janet Jeremiah Fire Chief Scott Gerber Parks and Recreation Director Jay Lotthammer Public Works Director Robert Ellis 18 FINANCIAL SECTION 19 This page is intentionally left blank 20 INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie (the City), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 21 Honorable Mayor and Members of the City Council City of Eden Prairie Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2019, and the respective changes in financial position, the budgetary comparison for the general fund, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of a Matter During the year ended December 31, 2019, the City changed accounting policies related to its accounting for fiduciary activities by adopting Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The statement provides guidance regarding the identification of fiduciary activities for accounting and reporting purposes and how those activities should be reported. As a result of the implementation of this standard, the City reported a restatement of beginning net position in the Fiduciary Funds (see Note 19). Our auditors’ opinion was not modified with respect to the restatement. Report on Summarized Comparative Information We have previously audited the City’s 2018 financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, and we expressed unmodified opinions on those financial statements in our report dated May 7, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, modified approach for infrastructure assets, schedule of changes in the City’s total OPEB liability and related ratios, schedule of the City’s proportionate share of net pension liability, and schedule of the City’s contributions, as listed on the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining fund financial statements, and statistical information are presented for purposes of additional analysis and are not a required part of the basic financial statements. 22 Honorable Mayor and Members of the City Council City of Eden Prairie Other Matters (Continued) Other Information (Continued) The combining fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 8, 2020, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Minneapolis, Minnesota April 8, 2020 23 City of Eden Prairie, Minnesota Management’s Discussion and Analysis As management of the City of Eden Prairie, this section of the City’s comprehensive annual financial report presents a discussion and analysis of the City’s financial activities during the fiscal year ended December 31, 2019. This discussion and analysis should be read in conjunction with the transmittal letter in the introductory section of this report. Financial Highlights The City as a Whole •The assets and deferred outflow of resources of the City exceeded liabilities and deferred inflowsof resources by $397,866,354. Of this amount, $58,526,752 (unrestricted net position) may beused to meet the City’s ongoing obligations to citizens and creditors, $318,807,795 is investedin capital assets, and $20,531,807 is restricted. •The City’s total net position increased by $2,981,706 or .76%. The key factors in this increasewere positive general fund results and reimbursement received for the General LRT project. TheCity was able to transfer positive General Fund results to the Capital Improvement andMaintenance Fund as one-time revenue to support the Capital Improvement Plan. •The City’s total long-term liabilities increased by $1,732,346 or 2.8% in comparison with theprior year. Contributing to the increase was the issuance of $4.9M of G.O. Water Revenue Bonds2019A for a Ground Water Reservoir. Offsetting the increase was the current year retirementsof outstanding bonds.Using This Annual Report This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. Reporting the City as a Whole The Statement of Net Position and the Statement of Activities One of the most important questions asked about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. 24 City of Eden Prairie, Minnesota Management’s Discussion and Analysis These two statements report the City’s net position and changes in them. You can think of the City’s net position – the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources – as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City. In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities: •Governmental Activities – Most of the City’s basic services are reported here, including generalgovernment, public safety, public works, and parks and recreation. Property taxes, charges forservices, and capital grants and contributions finance most of these activities. •Business-type Activities – The City charges a fee to customers to help it cover all or most of thecost of certain services it provides. The City’s utility system (Water, Wastewater andStormwater Funds) and liquor operations are reported here.Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain grants and other money. The City’s two kinds of funds – governmental and proprietary – use different accounting approaches. •Governmental funds – Most of the City’s basic services are reported in governmental funds,which focus on how money flows into and out of those funds and the balances left at year-endthat are available for spending. These funds are reported using an accounting method calledmodified accrual accounting, which measures cash and all other financial assets that can readilybe converted to cash. The governmental fund statements provide a detailed short-term view ofthe City’s general government operations and the basic services it provides. Governmental fundinformation helps to determine whether there are more or fewer financial resources that can bespent in the near future to finance the City’s programs. We describe the relationship betweengovernmental activities (reported in the Statement of Net Position and the Statement ofActivities) and governmental funds in a reconciliation provided after the fund financialstatements. •Proprietary funds – When the City charges customers for the services it provides – these services are generally reported in proprietary funds. Proprietary funds are reported in the same waythat all activities are reported in the Statement of Net Position and the Statement of Activities. 25 City of Eden Prairie, Minnesota Management’s Discussion and Analysis The City of Eden Prairie maintains two different types of proprietary funds. •Enterprise funds are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows. •Internal service funds are an accounting device used to accumulate and allocate costsinternally among the City’s various functions. The City uses internal service funds to accountfor activities pertaining to employee benefits, workers compensation, personal time offaccruals, property insurance, facilities, fleet services, and information technology.The City as Trustee Reporting the City’s Fiduciary Responsibilities All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. The City is fiduciary for resources collected and owed to others including developers and governmental agencies. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The accounting used for fiduciary funds is much like that used for proprietary funds. The City as a Whole The City’s combined net position increased from $394,884,648 to $397,866,354 and maintained its financial position. A large part of this increase was due to positive general fund performance and reimbursement received for Light Rail Transit. For the General Fund licenses and permits, property tax revenue, and interest income performed well. By far the largest portion of the City of Eden Prairie’s net position, $318,807,795 (approximately 80%) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City of Eden Prairie uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position $20,531,807 (approximately 5%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $58,526,752 (approximately 15%), may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all of the categories of net position reported for the government as a whole. 26 City of Eden Prairie, Minnesota Management’s Discussion and Analysis The following schedule provides a summary of the City’s net position as of December 31, 2019 (in thousands): Key elements of these changes are shown on the following page. 2019 2018 2019 2018 2019 2018 Current and Other Assets 88,814$ 92,667$ 33,467$ 27,628$ 122,281$ 120,295$ Capital Assets 235,088 231,885 118,722 119,332 353,810 351,217 Total Assets 323,902 324,552 152,189 146,960 476,091 471,512 Deferred Outflows 10,609 13,752 254 524 10,863 14,276 Total Assets and Deferred Outflows 334,511 338,304 152,443 147,484 486,954 485,788 Long-Term Liabilities Outstanding 54,221 56,995 10,422 5,917 64,643 62,912 Other Liabilities 7,597 6,725 1,813 1,330 9,410 8,055 Total Liabilities 61,818 63,720 12,235 7,247 74,053 70,967 Deferred Inflows 14,368 19,110 667 827 15,035 19,937 Total Liabilities and Deferred Inflows 76,186 82,830 12,902 8,074 89,088 90,904 Invested in Capital Assets 204,564 198,062 114,243 116,820 318,807 314,882 Restricted 20,532 28,343 - - 20,532 28,343 Unrestricted 33,230 29,069 25,297 22,590 58,527 51,659 Total Net Position 258,326$ 255,474$ 139,540$ 139,410$ 397,866$ 394,884$ Governmental Activities Business-Type activities Total 27 City of Eden Prairie, Minnesota Management’s Discussion and Analysis 2019 2018 2019 2018 2019 2018 Revenues: Program Revenues Charges for Services 12,992$ 11,991$ 28,529$ 28,413$ 41,521$ 40,404$ Operating Grants and Contributions 2,462 2,457 69 21 2,531 2,478 Capital Grants and Contributions 11,342 9,259 945 1,957 12,287 11,216 General Revenues Property Taxes 38,204 37,339 - - 38,204 37,339 Tax Increment 1,936 2,321 - - 1,936 2,321 Grants and Contributions 1,719 1,645 - - 1,719 1,645 Investment Income 1,747 988 695 377 2,442 1,365 Total Revenues 70,402 66,000 30,238 30,768 100,640 96,768 Expenses: Administration 4,827 5,093 - - 4,827 5,093 Community Development 4,772 4,942 - - 4,772 4,942 Police 15,022 14,366 - - 15,022 14,366 Fire 7,191 6,406 - - 7,191 6,406 Public Works 19,518 10,099 - - 19,518 10,099 Parks and Recreation 15,459 18,009 - - 15,459 18,009 Interest on Long Term Debt 835 907 - - 835 907 Water - - 9,708 10,461 9,708 10,461 Wastewater - - 7,679 7,469 7,679 7,469 Stormwater - - 2,414 2,351 2,414 2,351 Liquor - - 10,233 10,043 10,233 10,043 Total Expenses 67,624 59,822 30,034 30,324 97,658 90,146 Changes in Net Position Before Transfers 2,778 6,178 204 444 2,982 6,622 Internal Transfers 74 1,250 (74) (1,250) - - Change in Net Position 2,852 7,428 130 (806) 2,982 6,622 Net Position, January 1 255,474 248,046 139,410 140,216 394,884 388,262 Net Position, December 31 258,326$ 255,474$ 139,540$ 139,410$ 397,866$ 394,884$ Business-Type TotalGovernmental Activities 28 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Governmental Activities Revenue by Source •For the year, property taxes totaled $38,203,969 which is an increase of $865,386 or 2.3%from 2018. For 2019, the City budgeted for a 2.9% increase in property taxes. The increasein taxes was less than what was budgeted due to abatements/appeals of taxes resulting in anegative delinquent tax of $25,939. •Charges for services increased by $1,000,586 or 8.3% from 2018 due mainly to increasedpermit revenue and park and recreation fees. •Operating grants and contributions were consistent with 2018. •Capital grants and contributions increased by $2,082,590 or 22.5% from 2018 due toMunicipal State Aid for various construction projects. 29 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Expenses by Program 30 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Business-type Activities For the business-type activities, charges for services accounts for 94.3% of revenues. The Water Fund and Wastewater Fund had a negative change to net position of $1,304,165 and $501,708 respectively. The negative changes were primarily due to depreciation. The Stormwater Fund had a positive change to net position of $1,960,598 due to increased rates. The Liquor operations had a positive change in net position of $22,053. 31 City of Eden Prairie, Minnesota Management’s Discussion and Analysis The City’s Funds •The General fund is the chief operating fund of the City of Eden Prairie. Fund balanceincreased by $892,949 due mainly to increased property taxes. The increase in taxes allowsthe City to maintain service levels. Nonspendable Balances The amounts classified as nonspendable consist of amounts that are not in spendable form, such as prepaid assets. Unassigned Balances The unassigned fund balance consists of the budget stabilization balance and the working capital balance. Budget Stabilization In compliance with City policy, $4,865,745 or 10% of the 2020 budgeted expenditures was maintained for budget stabilization to be used for emergencies and maintenance of the City’s Aaa bond rating. Also, $2,432,873 or 5% of the 2020 budgeted expenditures was maintained for budget balancing to be used for short term volatility in the City’s finances. Working Capital In compliance with City policy, 50% of the next year’s budgeted tax revenues or $17,979,870 is maintained for working capital. This amount represents the amount needed to fund operations for the first six months of the year. The City receives a tax settlement in December that funds operations until the next settlement in June of the next year. 2019 2018 Difference Fund Balance: Nonspendable $ 69,611 $ 103,845 $ (34,234) Restricted 11,148 - 11,148 Unassigned Budget Stabilization 7,298,618 7,065,258 233,360 Working Capital 17,979,870 17,322,105 657,765 Unassigned 76,236 51,326 24,910 Total Fund Balance $ 25,435,483 $ 24,542,534 $ 892,949 32 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Other Major Funds The Public Improvement Construction fund balance decreased by $297,732 in 2019. Revenue of $7,358,138 was collected which consisted of special assessments, grants and state aid. Construction costs pertain mainly to Preserve Blvd., Single Tree Lane North and the Railroad Quite Zone. These project will be repaid with future special assessments, grants and state aid. The Capital Improvement Maintenance fund balance increased by $2,858,169 in 2019. Revenue of $2,431,330 was collected which includes the tax levy, building rental income, assessments and investment income. Expenditures for the year include the Fire Paging System, security cameras, play equipment replacement, parking and trail maintenance. Transfers in include $800,000 and $2,516,296 respectively from the Liquor fund and General fund due to positive operating results. Transfers out include $315,000 to the Single Tree Lane North and South project, $950,000 for the Towncenter station and $340,000 to the CIP Trails fund for various trail improvements. The Shady Oak Road North fund balance increased by $380,108 in 2019. The Shady Oak Road North project reconstructed Shady Oak Road from Rowland Road through the Highway 62 interchange. This project is substantially complete and should be closed out in 2020. The Eden Prairie Road fund increased by $134,341. Revenue of $157,529 was collected which consisted of special assessments. The Eden Prairie Road project reconstructed Eden Prairie Road and also adds a new creek crossing at Riley Creek. This project will be repaid with future special assessments. The General LRT fund increased by $2,631,232. Revenues of $3,122,894 was collected which consisted of MSA, permits and investment income. The expenses for this project were also funded with transfers from the Capital Improvement Fund, Utility Funds, Transportation Fund, and Economic Development Fund. The SWLRT should be completed in 2023. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Water fund sales through December 31, 2019 totaled $7,699,582, which is a decrease of $722,573 or 8.6% from 2018. Water usage decreased from 2,321 million gallons to 2,012 million gallons. Offsetting the decrease in consumption was an increase in rates. Wastewater fund sales through December 31, 2019 totaled $6,726,548, which is an increase of $370,534 or 5.8% from 2018. Sewer usage decreased from 1,469 million gallons to 1,407 million gallons. Offsetting the decrease in consumption was an increase in rates. Stormwater fund sales through December 31, 2019 totaled $3,125,251, which is an increase of $398,996 or 14.6% from 2018. The increase is due to the rate increase. 33 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Liquor operations profit of $800,000 was transferred to the Capital Improvement Maintenance Fund. Sales totaled $10,783,296, which is an increase of $223,781 or 2.1% over 2018. The operation continues to provide value to customers and maintain customer loyalty. Budgetary Highlights The net change in fund balance to the General fund was $892,949. Revenues of $49,259,340 were recorded which is $2,562,219 more than budgeted. The reasons for this variance is due to property tax revenue, licenses and permits, intergovernmental revenue, and investment income performing better than expected. Total expenditures equaled $46,236,044 or 98.4% of the budget. All departments except Parks have spent less than 100% of the amounts budgeted. Parks is over budget by 1%. Due to the positive General Fund performance, $2,516,296 was transferred to the Capital Improvement and Maintenance Fund to support the Capital Improvement Program. Capital Assets and Debt Administration Capital Assets At the end of 2019, the city had $354 million invested in capital assets. Major capital assets added during the current fiscal year by fund include the following: 2019 Fund Project Name Additions Improvement Projects Preserve Boulevard Expansion 2,859,066$ Light Rail Transit Roadway and Station Work 2,715,422 Water Capital New Ground Storage Reservoir & Pump Station 2,269,637 Park Improvement Staring Lake Park Shelter 1,704,998 Fleet Capital Vehicle Replacements 1,037,538 Improvement Projects Railroad Quiet Zone 767,892 Eden Prairie Road Eden Prairie Road Connection to CSAH 61 389,891 Total 11,744,444$ 34 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Capital Assets (net of depreciation, in thousands) The City has chosen to maintain infrastructure using the modified approach. This means the City does not depreciate the cost of infrastructure but maintains the system at a “very good condition” level or higher. Additional information on the modified approach can be found in Note 1 of this report and additional information on the City’s capital assets can be found in Note 4 of this report. The City’s policy is to achieve an average rating of 70 (very good condition) for all streets and trails. In the summer of 2019, the City conducted a physical condition assessment. This assessment will be performed every three years. As of December 31, 2019, the City’s infrastructure system was rated at a Pavement Condition Index (PCI) of 83.0%, which is higher than the City’s policy level. The City’s infrastructure is constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short-term maintenance activities such as pothole patching, crack sealing, seal coating, and overlaying. The City expended $3,154,439 on infrastructure maintenance for the year ending December 31, 2019. These expenditures delayed deterioration; however, the overall condition of the system was not improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures required to maintain the City’s infrastructure at the average PCI rating of very good is approximately $3,500,000. Debt At year-end, the City had approximately $65 million in bonds and other long-term liabilities outstanding versus $63 million last year. Debt increased due to the issuance of $4.9M of G.O. Water revenue Bonds 2019A for a Ground Water Resevoir. Offsetting the increase was the current year retirements of outstanding bonds. (Refer to Note 11). 2019 2018 2019 2018 2019 2018 Land & Land Improv.34,210$ 34,424$ 1,121$ 1,088$ 35,331$ 35,512$ Infrastructure 137,057 135,623 - - 137,057 135,623 Work in Progress 4,449 1,645 2,463 519 6,912 2,164 Distribution System - - 87,877 88,788 87,877 88,788 Buildings 51,706 52,340 23,461 24,820 75,167 77,160 Leasehold Improvements 1 4 35 104 36 108 Machinery & Equipment 943 1,105 3,627 3,967 4,570 5,072 Autos 3,343 3,420 138 46 3,481 3,466 Other Assets 3,379 3,324 - - 3,379 3,324 Total 235,088$ 231,885$ 118,722$ 119,332$ 353,810$ 351,217$ Governmental Activities Business-type Activities Total 35 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Economic Factors and Next Year’s Budgets The City’s elected officials consider many factors when adopting the budget and determining fees for service and fees that will be charged for the business-type activities. These factors include service levels, the tax impact on the median value home, commercial/industrial and household growth, and inflation. Currently, the 2020 general fund budgeted appropriations are $48,657,456 which is an increase of $1,555,736 or 3.3% from the 2019 budget. The City has a balanced budget for 2020. Contacting the City’s Financial Management This financial report is designed to provide a general overview of the City’s finances for those interested in the government’s finances. If you have questions about this report or need additional financial information, contact the Finance Division at City of Eden Prairie, 8080 Mitchell Road, Eden Prairie, MN 55344. 36 GOVERNMENT-WIDE STATEMENTS 37 City of Eden Prairie, Minnesota Statement of Net Position December 31, 2019 Governmental Business-type Activities Activities Total ASSETS $73,355,074 $28,129,525 $101,484,599 Cash and Investments Receivables Accounts 2,723,452 3,252,995 5,976,447 Interest 201,474 77,187 278,661 Due From Other Governments 1,267,081 160,990 1,428,071 Unremitted Taxes 132,188 - 132,188 Delinquent Taxes 311,106 - 311,106 Unremitted Special Assessments 1,823 5,239 7,062 Delinquent Special Assessments 1,527 349,417 350,944 Special Assessments 7,109,547 377,489 7,487,036 Unavailable Special Assessments 1,222,772 297,457 1,520,229 Internal Balances 785,852 (785,852) - Inventories 104,681 1,218,189 1,322,870 Net Pension Asset - - - Prepaid Items 814,301 383,733 1,198,034 Land Held for Resale 784,000 - 784,000 Capital Assets Nondepreciable Land 22,132,497 1,065,566 23,198,063 Infrastructure 137,056,914 - 137,056,914 Work in Progress 4,448,996 2,463,490 6,912,486 Depreciable Buildings, Property and Equipment, Net 71,449,605 115,192,914 186,642,519 Total Assets 323,902,890 152,188,339 476,091,229 DEFERRED OUTFLOWS OF RESOURCES Loss on Refunding of Debt 116,813 - 116,813 Other Post Employment Benefits 145,518 11,444 156,962 Pensions 10,346,256 242,953 10,589,209 Total Deferred Outflows of Resources 10,608,587 254,397 10,862,984 Total Assets and Deferred Outflows of Resources 334,511,477 152,442,736 486,954,213 Primary Government 38 City of Eden Prairie, Minnesota Statement of Net Position December 31, 2019 Governmental Business-type Activities Activities Total LIABILITIES Accounts and Contracts Payable 5,327,461 1,539,091 6,866,552 Salaries Payable 663,361 114,190 777,551 Investment Interest Payable 6,964 - 6,964 Interest Payable 402,199 27,093 429,292 Due to Other Governments 334,361 125,397 459,758 Unearned Revenue 861,901 7,192 869,093 Total OPEB Liability Due Within One Year 145,518 11,444 156,962 Due in More Than One Year 2,447,786 192,521 2,640,307 Net Pension Due in More Than One Year 18,879,963 2,917,974 21,797,937 Bonds Payable Due Within One Year 3,640,000 840,000 4,480,000 Due in More Than One Year 26,882,571 6,120,748 33,003,319 Capital lease payable Due Within One Year 58,478 - 58,478 Due in More Than One Year 59,612 - 59,612 Compensated Absences Due Within One Year 1,061,496 170,957 1,232,453 Due in More Than One Year 1,046,057 168,445 1,214,502 Total Liabilities 61,817,728 12,235,052 74,052,780 DEFERRED INFLOWS OF RESOURCES OPEB 75,046 5,902 80,948 Pensions 14,292,828 661,303 14,954,131 Total Deferred Inflows of Resources 14,367,874 667,205 15,035,079 Total Liabilities and Deferred Inflows 76,185,602 12,902,257 89,087,859 NET POSITION Net Investment in Capital Assets 204,564,164 114,243,631 318,807,795 Restricted for Perpetual Care, Nonexpendable 155,789 - 155,789 Restricted for Debt Service 7,022,018 - 7,022,018 Restricted for Special Assessments 5,357,143 - 5,357,143 Restricted for Tax Increment 2,926,585 - 2,926,585 Restricted for Public Works 3,651,540 - 3,651,540 Restricted for Parks and Recreation 1,383,549 - 1,383,549 Restricted for Historical and Cultural 35,183 - 35,183 Unrestricted 33,229,904 25,296,848 58,526,752 Total Net Position $258,325,875 $139,540,479 $397,866,354 Primary Government 39 City of Eden Prairie, Minnesota Statement of Activities For the Year Ended December 31, 2019 Program Revenue Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTIONS/PROGRAMS Primary Government Governmental Activities Administration $4,827,249 $1,052,388 $8,884 $- Community Development 4,771,490 180,443 331,342 - Police 15,021,975 1,103,269 846,317 81,917 Fire 7,191,071 3,580,095 684,243 - Public Works 19,518,141 1,070,746 503,049 8,728,446 Parks and Recreation 15,458,406 6,004,835 87,828 2,531,358 Interest on Long Term Debt 835,211 - - - Total Governmental Activities 67,623,543 12,991,776 2,461,663 11,341,721 Business-Type Activities Water 9,708,148 7,699,582 31,567 565,533 Wastewater 7,678,652 6,726,548 7,258 378,416 Stormwater 2,413,725 3,125,251 15,912 920 Liquor 10,233,318 10,977,643 14,692 - Total Business-Type Activities 30,033,843 28,529,024 69,429 944,869 Total Primary Government $97,657,386 $41,520,800 $2,531,092 $12,286,590 General Revenues Taxes Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Tax Increment Grants and Contributions Not Restricted to Specific Programs Investment Income Transfers Total General Revenues and Transfers Change in Net Position Net Position - Beginning Net Position - Ending 40 Net (Expense) Revenue and Changes in Net Position Governmental Business-type Activities Activities Total $(3,765,977) $- $(3,765,977) (4,259,705) - (4,259,705) (12,990,472) - (12,990,472) (2,926,733) - (2,926,733) (9,215,900) - (9,215,900) (6,834,385) - (6,834,385) (835,211) - (835,211) (40,828,383) - (40,828,383) - (1,411,466) (1,411,466) - (566,430) (566,430) - 728,358 728,358 - 759,017 759,017 - (490,521) (490,521) (40,828,383) (490,521) (41,318,904) 35,668,793 - 35,668,793 2,535,176 - 2,535,176 1,936,046 - 1,936,046 1,718,391 - 1,718,391 1,747,241 694,963 2,442,204 74,198 (74,198) - 43,679,845 620,765 44,300,610 2,851,462 130,244 2,981,706 255,474,413 139,410,235 394,884,648 $258,325,875 $139,540,479 $397,866,354 41 This page is intentionally left blank 42 FUND FINANCIAL STATEMENTS 43 City of Eden Prairie, Minnesota Balance Sheet Governmental Funds December 31, 2019 Public Capital Shady Oak Improvement Improvement Road General Construction Maintenance North ASSETS Cash and Investments $27,888,522 $1,810,738 $12,689,958 $1,127,604 ReceivablesAccounts 542,715 - 21,840 - Interest 62,026 3,776 33,939 3,947 Due From Other Governments 61,238 1,028,602 - - Unremitted Taxes 121,663 - 1,334 - Delinquent Taxes 307,623 - 3,483 - Unremitted Special Assessments - 1,428 - - Delinquent Special Assessments - 1,061 247 - Deferred Special Assessments - 351,243 160,170 3,221,062 Special Deferred Special Assessments - 178,495 61,582 - Due From Other Funds - - 957,937 - Advances to Other Funds - - 628,682 - Prepaid Items 69,611 - - - Land Held for Resale - - - - Notes Receivable - - - - Total Assets $29,053,398 $3,375,343 $14,559,172 $4,352,613 LIABILITIES Accounts and Contracts Payable $2,491,118 $1,577,471 $157,267 $- Salaries Payable 608,078 - - - Investment Interest Payable - - - - Due to Other Governments 43,926 63,063 - - Due to Other Funds - - - - Unearned Revenue 166,026 - 184,106 - Total Liabilities 3,309,148 1,640,534 341,373 - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Loans/Grants 1,144 464,216 - - Unavailable Revenue-Property Taxes 307,623 - 3,483 - Unavailable Revenue-Special Assessments - 530,799 221,999 3,221,062 Total Deferred Inflows of Resources 308,767 995,015 225,482 3,221,062 FUND BALANCES Nonspendable 69,611 - - - Restricted 11,148 - - 1,131,551 Assigned - 739,794 13,992,317 - Unassigned 25,354,724 - - - Total Fund Balance 25,435,483 739,794 13,992,317 1,131,551 Total Liabilities, Deferred Inflows of Resources, and Fund Balance $29,053,398 $3,375,343 $14,559,172 $4,352,613 Capital Projects 44 City of Eden Prairie, Minnesota Balance Sheet Governmental Funds December 31, 2019 ASSETS Cash and Investments ReceivablesAccountsInterest Due From Other Governments Unremitted TaxesDelinquent Taxes Unremitted Special Assessments Delinquent Special AssessmentsDeferred Special Assessments Special Deferred Special Assessments Due From Other FundsAdvances to Other FundsPrepaid ItemsLand Held for Resale Notes Receivable Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other GovernmentsDue to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Loans/Grants Unavailable Revenue-Property TaxesUnavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES NonspendableRestricted Assigned UnassignedTotal Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balance Eden Other Total Prairie General Governmental GovernmentalRoadLRTFundsFunds $- $- $19,040,685 $62,557,507 - - 922,285 1,486,840 - 1,738 63,777 169,203 - - 167,636 1,257,476 - - 9,191 132,188 - - - 311,106 - - 395 1,823 219 - - 1,527 142,377 - 3,234,695 7,109,547 861,934 - 120,761 1,222,772 - - 1,273,714 2,231,651 - - - 628,682 - - 65,230 134,841 - - 784,000 784,000 - - 1,166,205 1,166,205 $1,004,530 $1,738 $26,848,574 $79,195,368 $- $- $483,745 $4,709,601 - - 5,418 613,496 2,624 - 4,340 6,964 - - 7,488 114,477 730,712 70,055 1,273,714 2,074,481 - - 450,371 800,503 733,336 70,055 2,225,076 8,319,522 - - - 465,360 - - - 311,106 1,004,530 - 3,355,456 8,333,846 1,004,530 - 3,355,456 9,110,312 - - 221,019 290,630 - - 12,199,431 13,342,130 - - 10,264,724 24,996,835 (733,336) (68,317) (1,417,132) 23,135,939 (733,336) (68,317) 21,268,042 61,765,534 $1,004,530 $1,738 $26,848,574 $79,195,368 Capital Projects 45 This page is intentionally left blank 46 City of Eden Prairie, Minnesota Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2019 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balance - Governmental Funds $61,765,534 1.Capital assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of Capital Assets 274,873,146 Less Accumulated Depreciation (45,301,408) 2.Long term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Bond Principal Payable Net (30,522,571) Capital Lease (118,090) Deferred Loss on Refunding 116,813 3.The City's net pension liability, net pension asset and related deferred outflows and inflows of resources are recorded only on the Statement of Net Position Balances at year end are: Deferred Outflows of Resources related to pensions 10,346,256 Net Pension Liability (18,879,963) Deferred Inflows of Resources related to pensions (14,292,828) 4.Taxes and special assessment receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds.8,644,952 5.Grants and loan receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds.465,360 6.Governmental funds do not report a liability for accrued interest on long-term debt until due and payable.(402,199) 7.Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Governmental Activities in the Statement of Net Position.11,403,767 8.Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Business-type Activities in the Statement of Net Position.227,106 Net Position - Governmental Activities $258,325,875 47 City of Eden Prairie, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2019 Public Capital Shady OakImprovementImprovementRoad General Construction Maintenance North REVENUES General Property Taxes $35,009,667 $- $396,750 $- Special Assessments 386 176,214 21,857 1,844,868 Penalties and Interest 19,584 - - - Licenses and Permits 5,110,672 - - - Intergovernmental Revenue 1,768,464 7,013,177 25,000 - Charges for Services 6,132,338 - - - Fines and Forfeits 364,544 - - - Investment Income 547,778 33,400 314,799 35,737 Rental - - 1,642,533 - Other 305,907 135,347 30,391 - Total Revenues 49,259,340 7,358,138 2,431,330 1,880,605 EXPENDITURES CurrentAdministration 4,455,624 - - - Community Development 2,280,391 - - - Police 15,204,092 - - - Fire 5,854,829 - - - Public Works 5,891,040 - - - Parks and Recreation 12,489,302 - - - Interest on Interfund Borrowing - - - - Capital OutlayAdministration - - 14,268 - Community Development - - - - Police - - 62,027 - Fire - - 421,682 - Public Works - 8,605,870 72,523 497 Parks and Recreation - - 747,906 - Debt Service Principal 57,367 - - - Interest 3,399 - - - Fiscal Agent Fees - - - - Total Expenditures 46,236,044 8,605,870 1,318,406 497 Excess of Revenues Over (Under) Expenditures 3,023,296 (1,247,732) 1,112,924 1,880,108 OTHER FINANCING SOURCES (USES) Transfers In 405,949 950,000 3,350,245 - Transfers Out (2,536,296) - (1,605,000) (1,500,000) Total Other Financing Sources (Uses)(2,130,347) 950,000 1,745,245 (1,500,000) Net Change in Fund Balances 892,949 (297,732) 2,858,169 380,108 Fund Balance (Deficit) - Beginning 24,542,534 1,037,526 11,134,148 751,443 Fund Balance (Deficit) - Ending $25,435,483 $739,794 $13,992,317 $1,131,551 Capital Projects 48 City of Eden Prairie, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property TaxesSpecial AssessmentsPenalties and InterestLicenses and PermitsIntergovernmental RevenueCharges for ServicesFines and ForfeitsInvestment IncomeRentalOtherTotal Revenues EXPENDITURES CurrentAdministration Community DevelopmentPolice FirePublic Works Parks and RecreationInterest on Interfund Borrowing Capital OutlayAdministration Community DevelopmentPoliceFirePublic WorksParks and RecreationDebt ServicePrincipalInterestFiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance (Deficit) - Beginning Fund Balance (Deficit) - Ending Eden Other TotalPrairieGeneralGovernmentalGovernmental Road LRT Funds Funds $- $- $4,670,403 $40,076,820 157,529 - 667,109 2,867,963 - - - 19,584 - 606,349 3,337,394 9,054,415 - 2,500,000 3,384,832 14,691,473 - - - 6,132,338 - - 6,400 370,944 - 16,545 575,566 1,523,825 - - 75,858 1,718,391 - - 2,494,185 2,965,830 157,529 3,122,894 15,211,747 79,421,583 - - - 4,455,624 - - 2,482,012 4,762,403 - - 150,058 15,354,150 - - - 5,854,829 - - 119,495 6,010,535 - - 140,649 12,629,951 23,188 - 42,057 65,245 - - 106,030 120,298 - - - - - - - 62,027 - - - 421,682 - 5,210,193 6,841,102 20,730,185 - - 1,994,775 2,742,681 - - 3,379,426 3,436,793 - - 892,036 895,435 - - 10,838 10,838 23,188 5,210,193 16,158,478 77,552,676 134,341 (2,087,299) (946,731) 1,868,907 - 4,718,531 2,990,770 12,415,495 - - (3,928,663) (9,569,959) - 4,718,531 (937,893) 2,845,536 134,341 2,631,232 (1,884,624) 4,714,443 (867,677) (2,699,549) 23,152,666 57,051,091 $(733,336) $(68,317) $21,268,042 $61,765,534 Capital Projects 49 City of Eden Prairie, Minnesota Reconciliation of the Statement of Revenues and Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2019 Total net change in fund balances - governmental funds $4,714,443 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: 1.Capital outlays are reported in Governmental Funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful life's as depreciation expense. Capital Outlays 10,100,892 Depreciation Expense (3,928,847) The net effect of the disposal of capital assets Contributed to Enterprise funds (2,771,338) Disposals (1,019,841) Accumulated Depreciation on Disposals 853,014 2.Principal payments of long-term debt consumes the current financial resources of Governmental Funds, However they have no effect on Net Position.3,392,367 3.Interest on long-term debt in the statement of activities differs from the amount reported in theGovernmental Funds because interest is recognized as an expenditure in the funds when it is due thus requires use of current financial resources. In the Statement of Activities, however interest expense is recognized as the interest accrues, regardless of when it is due.33,290 4.Governmental Funds report debt issuance premiums and discounts as another financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the Government-wide financial statements. Amortization of Premiums/Discounts 105,115 5.Refunding losses are recognized when paid in the governmental funds but amortized over the life of the debt in the Statement of Activities.(22,917) 6.Taxes and special assessments receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds.(2,302,709) 7.Grants and loan receivable will be collected in future years, but are not available soon enough to pay forthe current period's expenditures, and therefore are deferred in the funds.(6,949,779) 8.Some pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures. Change in Net Pension Asset/Liability and Related Deferred Outflows/Inflows of Resources (470,323) 9.Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The net revenue of these activities is reported in Governmental Activities.1,071,561 10.Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The net revenue of these activities is reported in Business Type Activities.46,534 Change in Net Position - Governmental Activities $2,851,462 50 City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 2018 Budget Budget Variance Original Final Actual Over/(Under)Actual REVENUES Taxes and Special Assessments General Property Taxes and Assessments $34,619,210 $34,619,210 $35,010,053 $390,843 $34,237,432 Penalties and Interest 25,000 25,000 19,584 (5,416) 21,289 Total Taxes and Special Assessments 34,644,210 34,644,210 35,029,637 385,427 34,258,721 Licenses and PermitsLiquor, Beer and Wine Licenses 316,000 316,000 291,731 (24,269) 310,271 Business Licenses 28,400 28,400 29,130 730 29,565 Dog Registration Licenses 20,000 20,000 17,576 (2,424) 20,469 Building Permits and Fees 2,247,200 2,247,200 3,646,332 1,399,132 3,388,529 Cable TV 915,000 915,000 807,473 (107,527) 821,381 Other Permits 274,434 274,434 318,430 43,996 322,344 Total Licenses and Permits 3,801,034 3,801,034 5,110,672 1,309,638 4,892,559 Intergovernmental RevenuePolice Pension Aid 540,000 540,000 615,216 75,216 565,506 Fire Relief Association Aid 450,000 450,000 468,219 18,219 457,742 School Liaison 115,798 115,798 120,430 4,632 115,798 Police Training 88,000 88,000 63,627 (24,373) 64,119 Fire Training 20,000 20,000 216,024 196,024 - Grants 45,000 45,000 223,680 178,680 174,552 PERA Aid 52,384 52,384 52,384 - 52,384 Local Performance Aid - - 8,884 8,884 8,922 Total Intergovernmental Revenue 1,311,182 1,311,182 1,768,464 457,282 1,439,023 Charges for ServicesPublic Safety 167,500 167,500 195,310 27,810 168,197 Recreation Community Center 4,934,205 4,934,205 4,756,706 (177,499) 4,662,346 Youth Programs 379,500 379,500 474,103 94,603 446,124 Organized Athletics 261,240 261,240 202,187 (59,053) 209,138 Senior Center 104,050 104,050 85,341 (18,709) 88,887 Outdoor Center 85,000 85,000 73,357 (11,643) 65,169 Arts Center 75,500 75,500 111,761 36,261 96,542 Park Facilities 72,550 72,550 77,920 5,370 78,086 Oak Point Pool & Beaches 61,300 61,300 27,032 (34,268) 41,914 Park Maintenance 35,000 35,000 53,025 18,025 54,686 Therapeutic Recreation 36,000 36,000 40,760 4,760 35,931 Arts 26,350 26,350 30,721 4,371 24,706 Special Events 500 500 4,115 3,615 5,225 Total Recreation 6,071,195 6,071,195 5,937,028 (134,167) 5,808,754 Total Charges for Services 6,238,695 6,238,695 6,132,338 (106,357) 5,976,951 Fines and Forfeits 417,000 417,000 364,544 (52,456) 410,903 Investment Income 120,000 120,000 547,778 427,778 307,748 Other 165,000 165,000 305,907 140,907 245,245 Total Revenues $46,697,121 $46,697,121 $49,259,340 $2,562,219 $47,531,150 2019 51 City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changed in Fund Balance - Budget and Actual For the Year Ended December 31, 2019 Continued With Comparative Actual Amounts For the Year Ended December 31, 2018 2018 Budget Budget Variance Original Final Actual Over/(Under)Actual EXPENDITURES Current Administration Legislative $337,720 $337,720 $335,099 $(2,621) $353,363 Office of the City Manager 447,324 447,324 384,801 (62,523) 395,644 Legal Counsel 528,000 528,000 681,905 153,905 594,355 City Clerk 168,740 211,012 222,020 11,008 297,317 Communications 626,320 626,320 621,270 (5,050) 589,320 Finance 895,454 895,454 883,861 (11,593) 871,204 Customer Service 398,952 398,952 374,664 (24,288) 358,894 Human Resources 1,027,892 1,027,892 952,004 (75,888) 1,007,417 Total Administration 4,430,402 4,472,674 4,455,624 (17,050) 4,467,514 Community Development Assessing 1,049,428 1,049,428 1,018,893 (30,535) 999,649 Planning 681,986 691,040 560,696 (130,344) 657,096 Community Development Administration 278,168 278,168 214,459 (63,709) 200,664 Economic Development 136,190 136,190 134,979 (1,211) 131,498 Housing & Community Services 339,810 339,810 351,364 11,554 331,456 Total Community Development 2,485,582 2,494,636 2,280,391 (214,245) 2,320,363 Police 15,216,401 15,216,401 15,204,092 (12,309) 14,517,004 FireFire 4,901,001 4,901,001 4,498,609 (402,392) 4,743,169 Inspections 1,229,930 1,229,930 1,196,812 (33,118) 1,165,392 Public Safety Communications 191,305 191,305 159,408 (31,897) 150,058 Total Fire 6,322,236 6,322,236 5,854,829 (467,407) 6,058,619 Public Works Engineering 1,240,721 1,240,721 1,202,313 (38,408) 1,290,511 Street Maintenance 3,873,939 3,873,939 3,873,034 (905) 3,622,145 Street Lighting 955,980 955,980 815,693 (140,287) 959,479 Total Public Works 6,070,640 6,070,640 5,891,040 (179,600) 5,872,135 2019 52 City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changed in Fund Balance - Budget and Actual For the Year Ended December 31, 2019 Continued With Comparative Actual Amounts For the Year Ended December 31, 2018 2018 Budget Budget Variance Original Final Actual Over/(Under)Actual 2019 EXPENDITURES (Continued) Current (Continued) Parks and Recreation Park Maintenance 4,101,439 4,101,439 4,146,897 45,458 4,006,113 Community Center 5,059,966 5,059,966 5,104,654 44,688 4,959,534 Youth Programs 521,073 521,073 562,473 41,400 560,645 Senior Center 426,849 426,849 413,573 (13,276) 417,007 Park Administration 435,135 435,135 412,288 (22,847) 424,314 Organized Athletics 274,217 274,217 238,158 (36,059) 247,497 Recreation Administration 360,457 360,457 368,885 8,428 352,724 Arts Center 295,335 295,335 346,513 51,178 334,375 Therapeutic Recreation 230,155 230,155 226,564 (3,591) 197,185 Outdoor Center 234,207 234,207 232,125 (2,082) 226,903 Oak Point Pool 43,902 43,902 31,862 (12,040) 42,541 Arts 131,694 131,694 150,528 18,834 153,329 Special Events 109,236 109,236 117,311 8,075 98,756 Park Facilities 73,939 73,939 82,869 8,930 79,853 Beaches 68,089 68,089 54,602 (13,487) 58,016 Total Parks and Recreation 12,365,693 12,365,693 12,489,302 123,609 12,158,792 Debt Service Principal 57,367 57,367 57,367 - 56,277 Interest 3,399 3,399 3,399 - 4,489 Total Debt Service 60,766 60,766 60,766 - 60,766 Total Expenditures 46,951,720 47,003,046 46,236,044 (767,002) 45,455,193 Excess of Revenues Over (Under) Expenditures (254,599) (305,925) 3,023,296 3,329,221 2,075,957 OTHER FINANCING SOURCES / (USES) Transfers In 404,599 404,599 405,949 1,350 399,723 Transfers Out (150,000) (150,000)(2,536,296)(2,386,296) (555,343) Total Other Financing Sources / (Uses)254,599 254,599 (2,130,347) (2,384,946) (155,620) Net Change in Fund Balance $- $(51,326) 892,949 $944,275 1,920,337 Fund Balance, January 1 24,542,534 22,622,197 Fund Balance, December 31 $25,435,483 $24,542,534 53 City of Eden Prairie, Minnesota Proprietary Funds Statement of Net Position December 31, 2019 GovernmentalActivitiesInternalWaterWastewaterStormwaterLiquorService Fund Fund Fund Fund Totals Fund ASSETS Current Assets:Cash and Investments $17,264,600 $5,626,666 $3,595,474 $1,869,891 $28,356,631 $10,570,461 Receivables: Accounts 1,292,284 1,342,819 616,289 1,603 3,252,995 70,407 Interest 41,775 18,392 11,137 5,883 77,187 32,271 Due From Other Governments - 130,452 30,538 - 160,990 9,605 Unremitted Special Assessments 5,239 - - - 5,239 - Delinquent Special Assessments 342,946 6,471 - - 349,417 - Deferred Special Assessments 80,565 120,848 176,076 - 377,489 - Special Deferred Special Assessments 118,983 178,474 - - 297,457 - Inventory - - - 1,218,189 1,218,189 104,681 Prepaid Items 4,800 350,217 - 28,716 383,733 679,460 Total Current Assets 19,151,192 7,774,339 4,429,514 3,124,282 34,479,327 11,466,885 Noncurrent AssetsCapital Assets: Property, Plant and Equipment 135,510,161 83,423,718 51,861,955 3,189,696 273,985,530 11,906,307 Less Accumulated Depreciation (79,107,102) (49,494,084) (25,186,531) (1,475,843) (155,263,560) (6,390,033) Total Noncurrent Assets 56,403,059 33,929,634 26,675,424 1,713,853 118,721,970 5,516,274 Total Assets 75,554,251 41,703,973 31,104,938 4,838,135 153,201,297 16,983,159 DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits 7,012 2,013 1,081 1,338 11,444 145,518 Pensions 129,577 34,539 22,184 56,653 242,953 - Total Deferred Outflows of Resources 136,589 36,552 23,265 57,991 254,397 145,518 Total Assets and Deferred Outflows of Resources 75,690,840 41,740,525 31,128,203 4,896,126 153,455,694 17,128,677 LIABILITIES Current Liabilities:Accounts Payable 830,485 24,721 35,442 648,443 1,539,091 617,860 Salaries Payable 57,191 18,171 11,274 27,554 114,190 49,865 Bond Interest Payable 26,855 238 - - 27,093 - Due to Other Governments 4,059 - - 121,338 125,397 219,884 Due to Other Funds - - 157,170 - 157,170 - Unearned Revenue - - - 7,192 7,192 61,398 Current Portion of Total OPEB Liability 7,012 2,013 1,081 1,338 11,444 145,518 Current Portion of Bonds Payable 745,000 95,000 - - 840,000 - Current Portion of Compensated Absences 110,149 15,531 16,732 28,545 170,957 1,061,496 Total Current Liabilities 1,780,751 155,674 221,699 834,410 2,992,534 2,156,021 Noncurrent Liabilities:Total OPEB Liability 117,961 33,857 18,194 22,509 192,521 2,447,786 Net Pension Liability 1,556,271 414,825 266,440 680,438 2,917,974 - Bonds Payable 6,116,507 4,241 - - 6,120,748 - Advances from Other Funds - - 628,682 - 628,682 - Compensated Absences 108,531 15,303 16,486 28,125 168,445 1,046,057 Total Noncurrent Liabilities 7,899,270 468,226 929,802 731,072 10,028,370 3,493,843 Total Liabilities 9,680,021 623,900 1,151,501 1,565,482 13,020,904 5,649,864 DEFERRED INFLOWS OF RESOURCES OPEB 3,616 1,038 558 690 5,902 75,046 Pensions 352,698 94,011 60,384 154,210 661,303 - Total Deferred Inflows of Resources 356,314 95,049 60,942 154,900 667,205 75,046 Total Liabilities and Deferred Inflows of Resources 10,036,335 718,949 1,212,443 1,720,382 13,688,109 5,724,910 NET POSITION Net Investment in Capital Assets 52,023,961 33,830,393 26,675,424 1,713,853 114,243,631 5,516,274 Unrestricted 13,630,544 7,191,183 3,240,336 1,461,891 25,523,954 5,887,493 Total Net Position $65,654,505 $41,021,576 $29,915,760 $3,175,744 139,767,585 $11,403,767 Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (227,106) Total Net Position-Business-Type Activities $139,540,479 54 City of Eden Prairie, Minnesota Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2019 Governmental Activities -InternalWaterWastewaterStormwaterLiquor ServiceFundFundFundFundTotalFund SALES AND COST OF SALES Sales $- $- $- $10,783,296 $10,783,296 $- Cost of Sales - - - (7,843,984) (7,843,984) - Gross Profit - - - 2,939,312 2,939,312 - OPERATING REVENUE Sales 7,683,329 6,726,548 3,125,251 - 17,535,128 - Charges for Services - - - - - 17,889,534 Rental - - - 146,108 146,108 958,884 Other 16,253 - - 48,239 64,492 - Total Operating Revenues 7,699,582 6,726,548 3,125,251 194,347 17,745,728 18,848,418 OPERATING EXPENSEPersonnel Services 2,918,503 839,118 550,709 1,202,685 5,511,015 8,323,787 SuppliesSupplies 92,876 32,300 86,256 27,140 238,572 67,755 Cleaning Supplies 5,991 - - - 5,991 144,402 Motor Fuel - - - - - 392,263 Tires - - - - - 79,168 Chemicals 599,687 - - - 599,687 - Repair and Maintenance Supplies 169,115 35,241 73,909 5,472 283,737 493,271 Contractual Services Contractual Services 400,067 65,755 266,895 179,310 912,027 2,868,101 Software 58,044 58,044 - - 116,088 1,167,010 Janitorial Services 47,386 - - 42,982 90,368 1,002,079 Lime Residual Removal 270,257 - - - 270,257 - Building Rent - - - 222,316 222,316 - Licenses, Permits, Taxes 172,709 - 254 91,877 264,840 199,362 Repair and Maintenance 534,424 141,261 66,150 24,242 766,077 306,740 Utilities 634,523 25,002 1,858 80,828 742,211 1,542,430 MCES Fees - 4,461,591 - - 4,461,591 - Bank and Credit Card Fees 42,650 42,650 - 222,910 308,210 - User Charges 306,782 247,434 108,560 166,828 829,604 - Capital Under $25,000 436,291 - 127,539 5,062 568,892 640,073 Total Operating Expenses 6,689,305 5,948,396 1,282,130 2,271,652 16,191,483 17,226,441 Operating Income (Loss) Before Depreciation 1,010,277 778,152 1,843,121 862,007 4,493,557 1,621,977 Depreciation 2,880,971 1,710,224 1,120,096 107,496 5,818,787 1,184,972 Operating Income (Loss) Before Nonoperating Revenue / Expense (1,870,694) (932,072) 723,025 754,511 (1,325,230) 437,005 NONOPERATING REVENUE (EXPENSE)Grants - 100,632 14,887 - 115,519 - Investment Income 375,249 165,442 101,422 52,850 694,963 296,957 Interest (72,390) (5,325) (9,430) - (87,145) - Bond Issuance Cost (81,319) 4,241 - - (77,078) - Fiscal Agent Fees (1,425) (125) - - (1,550) - Gain/(Loss) on Disposition of Capital Assets 32,718 - - - 32,718 197,066 Miscellaneous 31,567 37,078 1,025 14,692 84,362 115,833 Total Nonoperating Revenues (Expenses)284,400 301,943 107,904 67,542 761,789 609,856 Income (Loss) Before Contributions and Transfers (1,586,294) (630,129) 830,929 822,053 (563,441) 1,046,861 Contributions - from Governmental Activities 172,215 758,999 1,840,124 - 2,771,338 24,700 Capital Access Charges 449,710 123,105 - - 572,815 - Capital Special Assessments 115,823 124,859 920 - 241,602 - Transfers Out (455,619) (878,542) (711,375) (800,000) (2,845,536) - Change in Net Position (1,304,165) (501,708) 1,960,598 22,053 176,778 1,071,561 Net Position - Beginning 66,958,670 41,523,284 27,955,162 3,153,691 139,590,807 10,332,206 Net Position - Ending $65,654,505 $41,021,576 $29,915,760 $3,175,744 139,767,585 $11,403,767 Adjustment to reflect the consolidation of Internal Service Funds activitiesrelated to Enterprise Funds (46,534) Change in Net Position of Business-Type Activities 130,244$ 55 City of Eden Prairie, Minnesota Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2019 Page 1 of 2 Governmental Activities - Internal Water Wastewater Stormwater Liquor Service Fund Fund Fund Fund Totals Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $7,768,603 $6,686,424 $3,095,196 $10,979,316 $28,529,539 $18,029,713 Payments to Vendors (3,311,514) (5,578,395) (725,013) (8,986,100) (18,601,022) (9,401,435) Payments to Employees (2,781,754) (807,825) (570,249) (1,165,421) (5,325,249) (8,107,342) Other Receipts 47,820 - - - 47,820 1,074,717 Net Cash Provided (Used) By Operating Activities 1,723,155 300,204 1,799,934 827,795 4,651,088 1,595,653 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 369,599 162,330 96,192 52,029 680,150 291,314 Net Cash Provided (Used) By Investing Activities 369,599 162,330 96,192 52,029 680,150 291,314 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants - 100,632 14,887 - 115,519 - Payments From Other Funds - - (157,171) - (157,171) - Transfers (Out)(455,619) (878,542) (711,375) (800,000) (2,845,536) - Net Cash Provided (Used) By Noncapital Financing Activities (455,619) (777,910) (853,659) (800,000) (2,887,188) - CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets (2,398,488) (6,127) (33,132) - (2,437,747) (1,154,444) Proceeds From Sale of Equipment 32,718 - - - 32,718 221,766 Access Charges 449,710 123,105 - - 572,815 - Special Assessments 115,823 124,859 920 - 241,602 - Proceeds from Debt 5,102,458 - - - 5,102,458 - Principal Paid on Debt (540,000) (90,000) - - (630,000) - Interest and Fiscal Agent Paid on Debt (166,485) (5,675) (9,430) - (181,590) - Net Cash Provided (Used) By Capital Financing Activities 2,595,736 146,162 (41,642) - 2,700,256 (932,678) Net Increase (Decrease) in Cash and Cash Equivalents 4,232,871 (169,214) 1,000,825 79,824 5,144,306 954,289 Cash and Cash Equivalents, January 1 13,031,729 5,795,880 2,594,649 1,790,067 23,212,325 9,616,172 Cash and Cash Equivalents, December 31 $17,264,600 $5,626,666 $3,595,474 $1,869,891 $28,356,631 $10,570,461 56 City of Eden Prairie, Minnesota Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2019 Page 2 of 2 Governmental Activities -Internal Water Wastewater Stormwater Liquor Service Fund Fund Fund Fund Totals Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss)$(1,870,694) $(932,072) $723,025 $754,511 $(1,325,230) $437,005 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 2,880,971 1,710,224 1,120,096 107,496 5,818,787 1,184,972 Miscellaneous 31,567 37,078 1,025 14,692 84,362 115,833 (Increase) Decrease in Assets and Deferred Outflows: Accounts Receivable 141,055 3,840 (55,231) 1,644 91,308 79,376 Special Assessments Receivable (55,781) (43,964) 25,176 - (74,569) - Due From Other Governments - (130,452) (43) - (130,495) (9,552) Inventory - - - (108,347) (108,347) (9,505) Prepaid Items 18,469 (350,217) 65 (14,700) (346,383) (310,262) Other Post Employment Benefits (Deferred Outflow)(1,700) (488) (262) (324) (2,774) (35,285) Pensions (Deferred Outflow)140,395 37,596 29,596 64,956 272,543 - Increase (Decrease) in Liabilities and Deferred Inflows: Accounts Payable 442,373 (21,529) 5,361 39,057 465,262 (218,594) Salaries Payable 8,359 4,279 2,659 4,010 19,307 9,964 Unearned Revenue - - - 29 29 60,803 Due to Other Governments (1,554) (3,997) - (3,851) (9,402) 49,132 Other Post Employment Benefits 1,140 327 176 219 1,862 98,721 Net Pension Liability 51,197 12,683 (22,232) 2,463 44,111 - Other Post Employment Benefits (Deferred Inflows)3,616 1,038 558 690 5,902 - Pensions (Deferred Inflow)(80,338) (21,694) (22,672) (40,854) (165,558) - Compensated Absences 14,080 (2,448) (7,363) 6,104 10,373 143,045 Net Cash Provided (Used) by Operating Activities $1,723,155 $300,204 $1,799,934 $827,795 $4,651,088 $1,595,653 Noncash Investing, Capital and Financing Activities: Contributions of Capital Assets from Governmental Activities $172,215 $758,999 $1,840,124 $- $2,771,338 $24,700 Amortization of Bond Premium 81,319 (4,241) - - 77,078 - 57 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Fiduciary Net Position December 31, 2019 Custodial Funds Total ASSETS Cash and Investments $604,414 Accounts Receivable 2,129 Due from Other Governments 51,570 Prepaids 6,287 Total Assets $664,400 LIABILITIES Accounts Payable $7,018 Due to Other Governments 124,250 Total Liabilities $131,268 NET POSITION Restricted $533,132 $533,132 58 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2019 Custodial Funds Total ADDITIONS Grants $311,468 Memberships 140,018 Investments Earnings 10,218 Building Permits 335,475 Customers Deposits 10,934 Other 3,205 Total Additions 811,318 DEDUCTIONS Personnel Services 324,204 Supplies 39,481 Contractual Services 513,888 Total Deductions 877,573 Net Increase (Decrease) in Fiduciary Net Position (66,255) Net Position - Beginning, as previously stated - Change of Accounting Principle 599,387 Net Position - Beginning, as restated 599,387 Net Position - Ending $533,132 59 This page is intentionally left blank 60 NOTES TO FINANCIAL STATEMENTS 61 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies Reporting Entity The City of Eden Prairie is a municipal corporation governed by an elected mayor and four-member council. The accompanying financial statements consist of the primary government and organizations for which the primary government is financially accountable. In addition, the primary government may determine through exercise of management’s professional judgment that the inclusion of an organization that does not meet the financial accountability criteria is necessary in order to prevent the financial statements from being misleading. The criteria used to determine if the primary government is financially accountable for a potential component unit include whether or not the primary government appoints the voting majority of the potential component unit’s board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Blended Component Unit The Housing and Redevelopment Authority (H.R.A.) is a body organized and existing under the laws of the State of Minnesota. The Authority was established in 1980 by the City to carry out certain redevelopment projects within the City and is governed by the City Council and the Mayor. The City also has an operational responsibility for the H.R.A. The H.R.A. has a December 31 year-end and does not issue financial statements. This unit is included within the H.R.A. and Economic Development funds. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, service or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Statement Presentation Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements. 62 City of Eden Prairie, Minnesota Notes to Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. The fiduciary fund financial statements include Custodial funds, which utilize the accrual basis of accounting, but do not have a measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, interest and special assessments are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when payment is received by the City. The City reports the following major governmental funds: • The General fund is the City’s primary operating fund. It accounts for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service and capital projects. • The Public Improvement Construction fund accounts for proceeds of bonds sold and special assessments collected to finance street, drainage, and lateral utility construction within the City. • The Capital Improvement Maintenance fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City property. • The Shady Oak Road North fund accounts for the accumulation of resources to be used for the reconstruction of Shady Oak Road from Rowland Road through the Highway 62 interchange. • The Eden Prairie Road fund accounts for proceeds of bonds sold to finance the construction of Eden Prairie Road. • The General LRT fund accounts for the accumulation of resources to be used for the completion of the Town Center Station, Urban Grid roadway system, extension of Eden Road to the station and upgrade/betterments of amenities within Eden Prairie beyond the base product. 63 City of Eden Prairie, Minnesota Notes to Financial Statements The City reports the following major proprietary funds: • The Water fund accounts for the operations of the City water system. • The Wastewater fund accounts for the operations of the City wastewater service. • The Stormwater fund accounts for the operations of the City’s stormwater system. • The Liquor fund accounts for the operations of the City’s three retail liquor stores and the operations of the City-owned Den Road building which is leased to City liquor operations and other tenants. Additionally, the city reports the following fund types: • Internal Service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Internal Service funds include Health & Benefits, Severance, Workers Compensation, Property Insurance, Facilities, Fleet, and Information Technology. • Fiduciary funds include Custodial funds that account for evidence held by the Police department in the Escrow fund, WAFTA, Metropolitan Council Environmental Services funds (MCES) and the 494 Corridor Commission. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments in-lieu of taxes and other charges between the City’s water, wastewater, and storm water function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported from the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the City’s proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance Cash and Investments Cash and investments, except for small amounts of cash on hand, are deposited in pooled accounts of the City. The City invests cash surpluses in these accounts; and investment earnings, as well as gains and losses on sales of securities, are allocated to the various funds on the basis of average cash balances. Funds with deficit cash balance averages (interfund payable) are charged interest equivalent to the average investment earnings lost in financing the deficits. For purposes of the statement of cash flows, the Proprietary funds consider all unrestricted investments held in the pooled accounts of the City to be cash equivalents because this pool is used essentially as a demand deposit account. 64 City of Eden Prairie, Minnesota Notes to Financial Statements Investments are stated at their fair value as determined by quoted market prices, except for money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less which are recorded at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Money market investments are short-term, highly liquid debt instruments including commercial paper, banker's acceptances, and U.S. Treasury and agency obligations. Investments in external investment pools that meet the criteria of GASB Statement No. 79 are valued at amortized costs. If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in paragraph 16 of Statement No. 31. Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds” (i.e., the current portion of interfund loans) or advances to/from other funds. All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Inventories and Prepaid Items Liquor fund inventories are valued at average cost. The Fleet fund’s inventories are valued at cost. All inventories use the first-in/first-out (FIFO) method. Inventories and prepaids of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $25,000 and an estimated useful life in excess of 1 year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. 65 City of Eden Prairie, Minnesota Notes to Financial Statements The City has chosen to use the modified approach for its infrastructure assets which means the following criteria will take place: • The City will preserve and maintain infrastructure assets at a condition level of 70. • The Engineering department will be in charge of determining the appropriate condition level at which these assets are to be maintained. • The City will maintain an inventory of these assets and perform a condition assessment every 3 years to establish that the condition level of 70 is being maintained. • The City will make annual estimates of the amounts that must be expended to preserve and maintain these assets at the condition level of 70. Property, plant, and equipment, except for infrastructure, of the City are depreciated using the straight line method over the following estimated useful lives: Buildings 5-50 years Land improvements 10-50 years Leasehold improvements 10-25 years Equipment 5-30 years Autos 5-20 years Other assets 5-30 years Distribution system 20-50 years Intangible assets 3 years Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has three items that qualify for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position, the deferred charge for pensions (see Pension section below for explanation) and the deferred charge for OPEB (see OPEB section below for explanation). A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has two items that qualifies for reporting in this category. It is the deferred charge for pensions (see Pension section below for explanation) and the deferred charge for OPEB (see OPEB section below for explanation). 66 City of Eden Prairie, Minnesota Notes to Financial Statements The City also has one type of item, which arises under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, loans and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For the governmental activities, the net pension liability will be liquidated through the General fund. For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City’s requirement to contribute to the Eden Prairie Firefighter Relief Association, information about the Plan’s fiduciary net position and additions to/deductions from the Eden Prairie Firefighter Relief Association Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the total OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, the City recognizes benefit payments when due and payable in accordance with the benefit terms. The City’s benefit payments consist of the implicit rate subsidy, and subsidized premiums for officers injured in the line of duty. Other post-employment benefits are generally liquidated through the Health and Benefits Internal Service funds. Compensated Absences The City compensates employees upon termination for unused paid time off (PTO). Such pay will be reflected as a liability in the government-wide financial statement and accrued as an expense as it is earned in an internal service fund. General Property Taxes Property tax levies are set by the City Council in December each year and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies. 67 City of Eden Prairie, Minnesota Notes to Financial Statements Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to taxing districts in February, June, and December. In the governmental fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by unavailable revenue because they are not available to finance current expenditures. Special Assessment Levies Special assessments represent the financing for public improvements paid for by the benefiting property owner. In the fund financial statements, special assessment revenue and related interest income is generally recognized in the year collected. Hennepin County acts as the billing and collection agent. Amounts collected by the County during the year that have not yet been remitted to the City are considered collections for purposes of revenue recognition. Deferred special assessments receivable represents principal amounts due in future years. Special deferred assessments receivable includes Green Acres, disability, senior citizen owned property or other qualified hardship properties. These special assessments are deferred until such time the property loses its exempt status. While these taxes remain a valid receivable, the timing of their collection is uncertain. Interest accrues from the year of the deferment. Delinquent special assessments receivable represents special assessments principal and interest that are past due. In the governmental fund financial statements, deferred and delinquent special assessments receivable are fully offset by deferred inflows of resources because such assessment revenue is not available currently. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums and discounts on debt issuances are reported as other financing sources/uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable-consists of amounts that are not in spendable form, such as prepaid assets and assets that are legally or contractually required to be maintained intact. 68 City of Eden Prairie, Minnesota Notes to Financial Statements • Restricted-consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. • Committed-consists of internally imposed constraints. These constraints are established by Resolution of the City Council. Only the Council can remove or change the constraints placed on committed fund balances by resolution. • Assigned-consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City council and/or management. Pursuant to City Council Resolution, the City Manager or Finance Manager is authorized to establish assignments of fund balance. • Unassigned-is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City’s policy to use resources in the following order: 1) committed 2) assigned 3) unassigned. The City’s fund balance policy requires the unassigned for working capital fund balance component to equal 50% of the next year’s budgeted tax revenue. In recognition that the amount for working capital only covers operating costs for the first six months of the year, the City will maintain an unassigned fund balance component for budget stabilization which is 15% of the next year’s budget. If the balance falls below 15%, a plan would be developed and implemented to replenish the fund. Prior Period Comparative Financial Information/Reclassification The financial statements include certain prior year partial comparative information but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2018, from which the summarized information was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. The City adopted GASB Statement 84-Fiduciary Activities in 2019. This statement changed how deposits were reported. In prior years these deposits were reported in an Escrow fund in the Fiduciary Fund. For 2019, deposits are now being reported in the funds that they pertain to (ie General Fund, Water, etc.). As a result of GASB 84, $1,498,723 was moved from the Escrow fund to the various funds. Note 2—Stewardship, Compliance and Accountability Budgetary Information An annual budget is adopted on a basis consistent with generally accepted accounting principles for the General fund. The City does not budget for its Special Revenue funds. All annual appropriations lapse at fiscal year end. 69 City of Eden Prairie, Minnesota Notes to Financial Statements The proposed budget is presented to the City Council for review. The Council then holds truth-in-taxation meeting after which a final General Fund annual budget is legally adopted by no later than December 31. The appropriated budget is prepared by department and division. The City’s directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. The legal level of budgetary control is the fund level. Any changes in the total budget of each fund must be approved by a majority vote of the City Council. During the year, adjustments between the original and final General fund amended budget resulted in an increase of $51,326. Following are changes made to the original budget during the year: General fund expenditures equal $46,236,044 or 98.4% of the annual amount budgeted of $47,003,046. All departments except Parks have spent less than 100% of the amounts budgeted. Deficit Fund Equity The following governmental funds had deficit fund balance/net position at December 31, 2019: The fund balance deficits of these individual Capital Project funds will be financed by municipal state aid, special assessments and other future City planned funding as identified in the City’s Capital Improvement Plan. The fund balance deficit of the Severance Internal Service fund will be financed by user charges. The fund balance deficit of the Health and Benefits fund is due to the OPEB liability which the City will not fund since it pertains only to the Implicit Rate. City Clerk Inspection Scanning & Staffing 42,272$ Planning Comprehensive Plan 9,054 51,326$ Major Funds: Eden Prairie Road 733,336$ General LRT 68,317 Non-Major Governmental Funds: Eden Prairie Rd Connect to Flying Cloud 1,340,000 Homeowners Improvements Area 18,368 Singletree Lane South 58,634 Internal Service Funds: Health and Benefits 1,284,523 Severance 697,170 70 City of Eden Prairie, Minnesota Notes to Financial Statements Note 3—Cash and Investments Components of Cash and Investments Cash and investments at year-end consist of the following: Cash and investments are presented in the financial statements as follows: Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, including checking accounts and certificates of deposits. The following is considered the most significant risk associated with deposits: Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligation rate “A” or better; revenue obligations rate “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificated of deposit. Minnesota Statues require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. It is the City’s policy to limit collateral to what is authorized by Minnesota Statutes. At year-end, the carrying amount of the City’s deposits was $0 while the balance on the bank records was $0. At December 31, 2019, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City’s agent in the City’s name. Investments 102,062,503$ Cash on hand 26,510 Total 102,089,013$ Statement of Net Position Cash and cash equivalents 101,484,599$ Statement of Fiduciary Net Position Cash and investments 604,414 102,089,013$ 71 City of Eden Prairie, Minnesota Notes to Financial Statements Investments As of December 31, 2019, the city had the following investments and maturities: Moody’s Investors Service was used as the primary agency for the municipal bond ratings, in the case that Moody’s did not provide a rating a Standard & Poor’s was used. Investments are subject to various risks, the following of which are considered the most significant. Interest Rate Risk Per City policy, the City will match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than seven (7) years from the date of purchase or for mortgage backed securities, the weighted average life must be no more than seven (7) years from the date of purchase. The intent to invest in securities with longer maturities will be disclosed to the City Council. Currently, the City did not have any investments maturing more than seven years from the date of purchase. Less 1 to 5TotalThan 1 Year Years U.S. Agencies 48,350,485$ 8,280,771$ 40,069,714$ Municipal Bonds 8,251,597 3,718,865 4,532,732 Commercial Paper 1,991,800 1,991,800 - Negotiable Certificate of Deposit 6,250,148 4,720,513 1,529,635 Bankers Acceptance 4,159,518 4,159,518 - Mutual Funds 33,058,955 33,058,955 - Total 102,062,503$ 55,930,422$ 46,132,081$ Investment Maturities (in Years) Negotiable US Municipal Commercial Certificate Bankers Mutual Agencies Bonds Paper of Deposit Acceptance Funds Total Moody's AAA 46,877,708$ 1,744,445$ -$ -$ -$ -$ 48,622,153$ AA1 - 2,443,754 - - - - 2,443,754 AA2 - 378,004 - - - - 378,004 AA3 - 353,172 - - - - 353,172 A1 - 1,009,730 - - - - 1,009,730 N/A, N/R 1,472,777 - 1,991,800 6,250,148 4,159,518 33,058,955 46,933,198 S&P A+- 301,131 - - - - 301,131 AAA - 2,021,361 - - - - 2,021,361 48,350,485$ 8,251,597$ 1,991,800$ 6,250,148$ 4,159,518$ 33,058,955$ 102,062,503$ 72 City of Eden Prairie, Minnesota Notes to Financial Statements Credit Risk It is the City’s policy to limit its investments to the following types, which are also authorized by Minnesota Statutes: • Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. • Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above or in general obligation tax exempt securities, or repurchase or reverse repurchase agreements. • Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000: a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers, or, a bank qualified as a depositor. • Commercial paper issued by United States corporations or their Canadian subsidiaries, of the higher quality, and maturing in 270 days or less. • Banker’s acceptance of U.S. banks eligible for purchase by the Federal Reserve System. • General obligations of a state or local government. • Money market mutual funds meeting the conditions of rule 2a-7 of the Securities and Exchange Commission. The fair value of the position in the pool is the net asset value per share provided by the pool. Custodial Credit Risk For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investments are held in safe keeping. The City’s investment policy specifically addresses custodial credit risk by requiring investments to be held at the Federal Reserve Bank or any bank authorized under the laws of the United States. Concentration Risk This is the risk associated with investing a significant portion of the City’s investment (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City’s investment policy specifically addresses the City’s desire to limit risk by avoiding over concentration in securities from a specific issuer and by setting allocation guidelines to diversify the types of securities in the portfolio. At year end, the City did not hold any investment in securities with a single issuer which exceeded 5%. Fair Value Measurements The City uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. 73 City of Eden Prairie, Minnesota Notes to Financial Statements The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: • Level 1 – Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities. • Level 2 – Financial assets and liabilities are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. • Level 3 – Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants and would use in pricing the asset. Assets measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total U.S. Agencies 41,091,316$ 7,259,169$ -$ 48,350,485$ Municipal Bonds - 8,251,597 - 8,251,597 Negotiable Certificates of Deposit - 5,040,025 - 5,040,025 41,091,316$ 20,550,791$ -$ 61,642,107 Investments measured at amortized cost 40,420,396 102,062,503$ 74 City of Eden Prairie, Minnesota Notes to Financial Statements Note 4—Capital Assets Capital asset activity for the year ended December 31, 2019 was as follows: 2019 2019 Beginning Ending Balance Transfers Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital Assets, Not Being Depreciated Land $21,844,811 $- $287,686 $- $22,132,497 Infrastructure 135,623,178 1,188,073 340,789 95,126 137,056,914 Work in Progress 1,644,751 (6,226,087) 9,030,332 - 4,448,996 Total Capital Assets, Not Being Depreciated 159,112,740 (5,038,014) 9,658,807 95,126 163,638,407 Capital Assets, Being Depreciated Buildings 72,705,260 1,567,726 98,205 127,635 74,243,556 Land Improvements 21,704,462 505,662 98,618 7,316 22,301,426 Leasehold Improvements 77,318 - - - 77,318 Machinery and Equipment 5,055,609 - 218,276 201,119 5,072,766 Autos 11,650,022 193,288 606,553 539,939 11,909,924 Other Assets 9,111,031 - 555,025 130,000 9,536,056 Total Capital Assets, Being Depreciated 120,303,702 2,266,676 1,576,677 1,006,009 123,141,046 Total Capital Assets, Cost 279,416,442 (2,771,338) 11,235,484 1,101,135 286,779,453 Less Accumulated Depreciation for Buildings 20,364,806 - 2,256,022 83,103 22,537,725 Land Improvements 9,126,157 - 1,103,333 4,847 10,224,643 Leasehold Improvements 72,917 - 3,058 - 75,975 Machinery and Equipment 3,951,249 - 379,437 201,119 4,129,567 Autos 8,229,920 - 871,965 535,090 8,566,795 Other Assets 5,786,732 - 500,004 130,000 6,156,736 Total Accumulated Depreciation 47,531,781 - 5,113,819 954,159 51,691,441 Total Capital Assets, Being Depreciated, Net 72,771,921 2,266,676 (3,537,142) 51,850 71,449,605 Governmental Activities Capital Assets, Net $231,884,661 $(2,771,338) $6,121,665 $146,976 $235,088,012 75 City of Eden Prairie, Minnesota Notes to Financial Statements 2019 2019BeginningEnding Balance Transfers Increases Decreases Balance BUSINESS-TYPE ACTIVITIES Capital Assets, Not Being Depreciated Land $1,027,319 $- $38,247 $- $1,065,566 Work in Progress 519,086 (286,986) 2,231,390 - 2,463,490 Total Capital Assets, Not Being Depreciated 1,546,405 (286,986) 2,269,637 - 3,529,056 Capital Assets, Being DepreciatedLand Improvements 165,679 - - - 165,679 Buildings 59,370,999 - - - 59,370,999 Distribution System 199,337,722 3,058,324 48,237 - 202,444,283 Leasehold Improvements 727,394 - - - 727,394 Machinery and Equipment 6,618,869 - - - 6,618,869 Autos 943,189 - 119,874 75,113 987,950 Other Assets 179,125 - - 37,825 141,300 Total Capital Assets, Being Depreciated 267,342,977 3,058,324 168,111 112,938 270,456,474 Total Capital Assets, Cost 268,889,382 2,771,338 2,437,748 112,938 273,985,530 Less Accumulated Depreciation forLand Improvements 105,304 - 6,097 - 111,401 Buildings 34,550,794 - 1,358,676 - 35,909,470 Distribution System 110,550,167 - 4,016,418 - 114,566,585 Leasehold Improvements 622,655 - 69,475 - 692,130 Machinery and Equipment 2,652,331 - 340,072 - 2,992,403 Autos 897,335 - 28,049 75,113 850,271 Other Assets 179,125 - - 37,825 141,300 Total Accumulated Depreciation 149,557,711 - 5,818,787 112,938 155,263,560 Total Capital Assets, Being Depreciated, Net 117,785,266 3,058,324 (5,650,676) - 115,192,914 Business-Type Activities Capital Assets, Net $119,331,671 $2,771,338 $(3,381,039) $- $118,721,970 76 City of Eden Prairie, Minnesota Notes to Financial Statements Depreciation expense was charged to functions/programs of the City as follows: Note 5—Notes/Loans Receivable The City has entered into note agreements with Eden Prairie residents to either improve the quality of housing and/or to increase the availability of affordable housing. These note agreements are secured by a secured lien that is placed on the property. The Rehabilitation Assistance notes have a phased repayment plan. If the loan is within 11 years of the loan date, 100% of the principal amount is due. On the 11th anniversary of the loan origination date, 90% of the loan principle is due and declines 10% a year until it is forgiven after 20 years. The Home Buyer notes are interest free and are due either when the home sells or 30 years, whichever occurs first. The City has also entered into a note agreement with Climatech to help fund planned renovations through DEED’s Minnesota Investment Fund. The program required the City to apply for the grant on behalf of Climatech and act as a conduit between DEED and the business. If Climatech meets the job creation and wage commitments, $100,000 of the note principal will be forgiven. The remaining $270,000 will be repaid over 7 years at an interest rate of 2.0%. The City has entered into a $500,000 TIF note agreement with the developer Elevate for site improvement costs to redevelop the vacant Ruby Tuesdays and Anchor Bank. The new six-story building will include 222 apartment units over approximately 13,000 square feet of retail and restaurants. The note will bear simple interest at the rate of 1% per annum. Governmental Activities Administration $305,786 Community Development 41,166 Police 205,575 Fire 288,092 Public Works 320,106 Parks and Recreation 2,768,122 Capital Assets Held by the Government's Internal Service Funds are Charged to the Various Functions Based on their Usage of the Assets 1,184,972 Total Depreciation Expense - Governmental Activities $5,113,819 Business-Type Activities Water $2,880,971 Wastewater 1,710,224 Stormwater 1,120,096 Liquor 107,496 Total Depreciation Expense - Business-Type Activities $5,818,787 77 City of Eden Prairie, Minnesota Notes to Financial Statements The interest and principal shall be paid on the earlier of (a) the end of the term of the HUD Mortgage (40 years) or (b) a sale, refinancing or exchange of the Project by the Developer, at which time all principal plus accrued interest shall be paid in a lump sum. Note 6—Interfund Receivables and Payables The composition of due to/from balances as of December 31, 2019, is as follows: The funds will be repaid as special assessment revenue, taxes, grants and other future City planned funding as identified in the City’s Capital Improvement Plan are received. Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances. Notes Project Receivable Home Buyer Assistance Program 188,252$ Rehabilitation Assistance Program 333,545 Climatech DEED 144,408 Elevate 500,000 1,166,205$ Due From Due To Advances To Advances From Other Funds Other Funds Other Funds Other Funds Capital Improvement Maintenance 957,937$ -$ 628,682$ -$ Eden Prairie Road - 730,712 - - General LRT - 70,055 - - Non-Major Governmental Funds 1,273,714 1,273,714 - - Stormwater Fund - 157,170 - 628,682 Total 2,231,651$ 2,231,651$ 628,682$ 628,682$ 78 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Interfund Transfers The composition of interfund transfers as of December 31, 2019, is as follows: Generally, transfers are used to move revenues from the fund that collects them to the fund that the budget requires to expend them. Transfers In Transfers Out Amount General Water 215,782$ Wastewater 128,127 Stormwater 60,690 Non-Major Governmental Funds 1,350 Public Improvement Construction Capital Improvement Maintenance 165,000 Stormwater 575,000 Non-Major Governmental Funds 210,000 Capital Improvement Maintenance General 2,516,296 Liquor Fund 800,000 Non-Major Governmental Funds 33,949 General LRT Capital Improvement Maintenance 950,000 Water 48,774 Wastewater 531,865 Stormwater 75,685 Non-Major Governmental Funds 3,112,207 Non-Major Governmental Funds General 20,000 Capital Improvement Maintenance 490,000 Shady Oak Road North 1,500,000 Water 191,063 Wastewater 218,550 Non-Major Governmental Funds 571,157 Total of transfers 12,415,495$ 79 City of Eden Prairie, Minnesota Notes to Financial Statements Note 8—Pension Plan Defined Benefit Pension Plans Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. General Employees Retirement Plan All full-time and certain part-time employees of the City of Eden Prairie are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. Public Employees Police and Fire Plan The Police and Fire Plan, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to PERA. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. 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. General Employees Plan Benefits General Employees Plan 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 PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% of average salary for each of the first 10 years of service and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be equal to 50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. 80 City of Eden Prairie, Minnesota Notes to Financial Statements For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. Police and Fire Plan Benefits Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. General Employees Plan Contributions Coordinated Plan members were required to contribute 6.50%, of their annual covered salary in fiscal year 2019 and the City was required to contribute 7.50% for Coordinated Plan members. The City’s contributions to the General Employees Plan for the year ended December 31, 2019, were $1,286,909. The City’s contributions were equal to the required contributions as set by state statute. Police and Fire Plan Contributions Police and Fire member’s contribution rates increased 10.8% of pay to 11.3% and employer rates increased from 16.2% to 16.95% on January 1, 2019. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2019, were $1,342,840. The City’s contributions were equal to the required contributions as set by state statute. 81 City of Eden Prairie, Minnesota Notes to Financial Statements Pension Costs General Employees Fund Pension Costs At December 31, 2019, the City reported a liability of $13,075,555 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2019. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $406,316. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City’s proportion share was .2365% which was a decrease of .0054% from its proportion share measured as of June 30, 2018. For the year ended December 31, 2019, the City recognized pension expense of $1,366,067 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $30,429 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Plan. At December 31, 2019, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $650,061 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. City's Proportionate Share of the Net Pension Liability 13,075,555$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 406,316 Total 13,481,871$ Deferred Outflow Deferred Inflow of Resources of Resources Differences Between Expected and Actual Economic Experience $362,372 $- Changes in Actuarial Assumptions - 1,027,747 Difference Between Projected and Actual Investment Earnings - 1,325,361 Changes in Proportion 76,250 610,227 Contributions Paid to PERA Subsequent to the Measurement Date 650,061 - Total $1,088,683 $2,963,335 82 City of Eden Prairie, Minnesota Notes to Financial Statements Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Police and Fire Plan Pension Costs At December 31, 2019, the City reported a liability of $7,770,523 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was .7299% which was an increase of .0003% from its proportionate share measured as of June 30, 2018. The City also recognized $98,536 for the year ended December 31, 2019 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year until the plan is 90% funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. For the year ended December 31, 2019, the City recognized pension expense of $989,875 for its proportionate share of the Police and Fire Plan’s pension expense. At December 31, 2019, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Pension Expense Year Ended Dec 31:Amount 2020 $(884,397) 2021 (1,315,616) 2022 (345,772) 2023 21,072 Deferred Outflow Deferred Inflow of Resources of Resources Differences Between Expected and Actual Economic Experience $329,931 $1,182,757 Changes in Actuarial Assumptions 6,448,302 8,723,912 Difference Between Projected and Actual Investment Earnings - 1,618,418 Changes in Proportion 6,179 387,353 Contributions Paid to PERA Subsequent to the Measurement Date 701,188 - Total $7,485,600 $11,912,440 83 City of Eden Prairie, Minnesota Notes to Financial Statements The $701,188 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Total Pension Expense The total pension expense for all plans recognized by the City for the year ended December 31, 2019, was $3,561,303. Actuarial Assumptions The total pension liability in the June 30, 2019, actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25% per year for the General Employees Plan and 1% per year for the Police and Fire Plan. Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for Police and Fire Plan was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions. The following changes in actuarial assumptions and plan provisions occurred in 2019: General Employees Fund Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions: • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Pension Expense Year Ended Dec 31:Amount 2020 (647,724)$ 2021 (1,227,154) 2022 (3,177,125) 2023 (70,324) 2024 (5,701) Inflation 2.5% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.5% 84 City of Eden Prairie, Minnesota Notes to Financial Statements Police and Fire Fund Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2017 to MP-2018. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return Domestic Equity 35.5% 5.10% Private Markets 25.0% 5.90% Fixed Income 20.0% 0.75% International Equity 17.5% 5.90% Cash Equivalents 2.0% 0.00% Total 100% Discount Rate The discount rate used to measure the total pension liability in 2019 was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire Fund were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Lower 6.5%21,495,509$ 6.5%16,984,919$ Current discount Rate 7.5%13,075,555$ 7.5%7,770,523$ 1% Higher 8.5%6,123,210$ 8.5%150$ Sensitivity of Net Pension Liability at Differenct Discount Rate (in thousands) General Employees Fund Police and Fire Fund 85 City of Eden Prairie, Minnesota Notes to Financial Statements Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Defined Contribution Plan Five council members of the City of Eden Prairie are covered by the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the City’s during fiscal year 2018 were: Defined Benefit Pension Plans – Volunteer Fire Fighter’s Relief Association Plan Description Firefighters of the City of Eden Prairie are members of the Eden Prairie Firefighter Relief Association. The Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The plan is administered pursuant to Minnesota Statutes Chapter 69, Chapter 424A, and the Association’s by-laws. As of December 31, 2018, membership includes 94 active participants, 102 retirees and beneficiaries currently receiving benefits, and 22 terminated employees entitled to benefit but not yet receiving them. The plan issues a stand-alone financial statement. Required Employee Employer Employee Employer Rates 2,976$ 2,976$ 5.00% 5.00% 5.00% Amount % of Covered Payroll 86 City of Eden Prairie, Minnesota Notes to Financial Statements Benefits Provided Authority for payment of pension benefits is established in Minnesota Statutes §69.77 and may be amended only by the Minnesota State Legislature. Each member who is at least 50 years of age; has retired from the Eden Prairie Fire Department; has served at least 10 years of active service with such department before retirement; and, has been a member of the Association in good standing for at least 10 years prior to such retirement; shall be entitled to receive a service pension based on the vested amount of service time accrued. Full vesting occurs at 10 years of service, with no provision for partial investing. Upon retirement, an irrevocable election for one of the following two plan options must be made. • Monthly Service Pension – Each eligible member electing this plan is entitled to receive a monthly service pension calculated by multiplying $56 times each year that member has been an active firefighter in the Fire Department and member in good standing of the Relief Association, up to a maximum monthly pension of $1,792. • Lump Sum Service Pension – each eligible member electing this plan is entitled to receive a one-time lump sum service pension calculated by multiplying $10,000 times the years of service which the member would be entitled. Pursuant to Minnesota Statutes §424A.02, Subds. 2 and 4, members who retire with 10 years of service and have reached the age of 50 years are eligible for a retirement benefit. Members who retire before full retirement age and years of service requirements are eligible for a reduced benefit, based on the vesting schedule as set forth in Minnesota Statutes Statutes §424A.02, Subd. 2(c). During the time a member is on early vested pension, they will not be eligible for disability benefits. A member, who is disabled with a fire service related disability, shall be eligible to collect a disability benefit. The member shall be eligible to receive the disability benefit immediately upon approval of the Board of Trustees. The disability benefit amount shall be equal to the service pension amount in effect on the date of the disability for each year of active service. A member must apply for and meet all the requirements for disability as defined in the bylaws in order to receive such benefits. A member currently receiving a disability benefit shall receive all approved increases in the monthly service pension applicable to that member’s number of years of active firefighting service. In the event of the death of an active or deferred member of the Association, the surviving spouse, if any, shall be paid 100% of the lump sum benefit for each year of service. If such member who has no surviving spouse leaves a surviving child or children, such child or children as a group shall be paid 100% of the lump sum benefit for each year of active service. If such member has no spouse and no surviving children but has a designated beneficiary on file, such beneficiary shall be paid 100% of the lump sum benefit for each year of active service. If such member has no spouse, no surviving children, and no designated beneficiary, the member’s estate shall be paid 100% of the lump sum benefit. Such death benefits are payable without regard to minimum or partial vesting requirements. If an active member dies before completing one year of active service, the Association shall pay a death benefit to his or her surviving spouse, surviving children or designated beneficiary on file in the same order and procedure as describe above of $10,000. 87 City of Eden Prairie, Minnesota Notes to Financial Statements In the event of the death of a retired member of the Association, the surviving spouse, if any, shall be paid until death or remarriage of the surviving spouse, monthly, two-thirds of the monthly service pension for each year of active service. If such member leave a surviving child or children in the addition to a spouse, such child or children, in the aggregate, shall be paid, monthly, the sum of one-third of the monthly service pension. If such member is survived only by a child or children, such child or children, in the aggregate, shall be paid, monthly, the sum of 100% of the monthly service pension for each year of active service. Minnesota Statutes Section 424A.10 provides for the payment of a supplemental benefit equal to 10% of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of state income tax exclusion for lump sum distributions and will no longer be available if state tax law is modified to exclude lump sum distributions from state income tax. The Association qualifies for these benefits. Contributions Minnesota Statues Chapter 424A.093 specifies minimum support rates required on an annual basis. The significant actuarial assumptions used to compute the municipal support are the same as those used to compute the accrued pension liability. The association is comprised of volunteers; therefore, there are no payroll expenditures (i.e. there are no covered payroll percentage calculations). The minimum contribution from the City of Eden Prairie and state aid is determined as follows: Normal Cost for the Next Year +Amortization of Unfunded Actuarial Liability as Reported in the Latest Actuarial Valuation +Administrative Expenses for the Prior Year Multiplied by a Factor of 1.035 -Anticipated State Aid (Not to Exceed the Fire Aid Received in the Prior Year Multiplied by a Factor of 1.035) -Anticipated Contributions Required by the Association Bylaws from Active Members of the Association =Minimum Municipal Obligation The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to the City $457,741 in fire state aid paid by the City to the Relief Association for the year ended December 31, 2018. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily-required contribution to the plan for the year ended December 31, 2018 was $203,986. The City used December 31, 2018 amounts since December 31, 2019 were not available yet. Pension Costs At December 31, 2019, the City reported $951,859 for the Association’s net pension liability. The net pension liability was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2018. 88 City of Eden Prairie, Minnesota Notes to Financial Statements As a result of its requirement to contribute to the Relief Association, the City recognized fire expense of $1,205,361 for the year ended December 31, 2019. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources from the following sources: The City contributions to the Association subsequent to the measurement date of $209,316, reported as deferred outflows of resources, will be recognized as an addition of the net pension asset in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to the Association’s pension will be recognized in pension expense as follows: Deferred Deferred Outflow of Inflow of Resources Resources Differences Between Expected and Actual Economic Experience $ - $78,356 Changes in Actuarial Assumptions 398,264 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 1,407,346 - City Contributions Subsequent to the Measurement Date 209,316 - Total $2,014,926 $78,356 Pension Expense Year Ended Dec 31:Amount 2020 $767,545 2021 292,280 2022 165,917 2023 501,511 Thereafter - 89 City of Eden Prairie, Minnesota Notes to Financial Statements Actuarial Assumptions The actuarial total pension liability was determined as of December 31, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation. The best-estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best-estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blended with forward-looking expectations available in market data. Valuation Date 12/31/18 Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar Closed Actuarial Assumptions: Discount Rate 5.50% Investment Rate of Return 5.50% 20-Year Municipal Bond Yield 3.50% Age of Service Retirement Later of Age 50 or 10 years of service Mortality Disability Withdrawal Percent Married 85.00% Age Difference 3 years Form of Payment Assumed life expectancies were based on the RP-2014 Generational mortality table projected with Improvement Scale MP-2017. 25% of active disabilities are assumed to be in the line of duty or fire service related. Service 0-4 Years:7% Service 5-9 Years:2% Service 10+ Years:8% 50% Annuity (J&S if married), 50% Lump Sum 90 City of Eden Prairie, Minnesota Notes to Financial Statements Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan's asset allocation are summarized in the following table: Discount Rate The discount rate used to measure the total pension liability was 5.50%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments were discounted by year using expected assets return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate of return. The equivalent single rate is the discount rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Pension Liability Sensitivity The following presents the City of Eden Prairies proportionate share of the net pension liability of the Association, calculated using the discount rate of 5.50%, as well as what the Association’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (4.50%) or one percentage point higher (6.50%) than the current rate: Plan’s Fiduciary Net Position Detailed information about the Plan’s fiduciary’s net position is available in a separately-issued report. That report may be obtained by writing to Eden Prairie Firefighter’s Association, 14800 Scenic Heights Rd., Eden Prairie, MN 55344 or by calling (952)949-8367. Long-Term Expected Expected Nominal Asset Class Portfolio Weight Rate of Return Cash 3.00%2.25% Fixed Income 36.00%3.70% Equities 50.00%7.20% Other 11.00%5.50% Total Portfolio 100.00%5.50% Selected 1% Decrease Discount Rate 1% Increase Net Pension Liability (Asset)3,350,087$ 951,859$ (1,029,859)$ Discount Rate 4.50%5.50% 6.50% 91 City of Eden Prairie, Minnesota Notes to Financial Statements Information about the changes in the Plan’s net pension liability (asset) is as follows: 2018 2017 Total Pension Liability Service Cost 498,110$ 485,961$ Interest 1,147,434 1,123,468 Differences Between Expected and Actual Experience (29,793) - Changes of Assumptions 246,754 - Changes of Benefit Terms 338,844 - Benefit Payments, Including Member Contribution Refunds (1,449,720) (1,084,111) Net Change in Total Pension Liability 751,629 525,318 Total Pension Liability - Beginning 21,008,095 20,482,777 Total Pension Liability - Ending (a)21,759,724 21,008,095 Plan Fiduciary Net Position Municipal Contributions 523,283 387,665 State Contributions 457,741 448,846 Net Investment Income (1,274,855) 2,776,128 Benefit Payments (1,449,720) (1,084,111) Administrative Expenses (30,772) (34,700) Other Changes 254 671 Net Change in Fiduciary Net Position (1,774,069) 2,494,499 Fiduciary Net Position - Beginning 22,581,934 20,087,435 Fiduciary Net Position - Ending (b)20,807,865 22,581,934 Association's Net Pension Liability/(Asset) - Ending (a) - (b)951,859$ (1,573,839)$ General Police Fire Employees Plan and Fire Relief Total Pension Expense 1,366,067$ 989,875$ 1,205,361$ 3,561,303$ Net Pension Liability 13,075,555 7,770,523 951,859 21,797,937 Deferred Outflows 1,088,683 7,485,600 2,014,926 10,589,209 Deferred Inflows 2,963,335 11,912,440 78,356 14,954,131 92 City of Eden Prairie, Minnesota Notes to Financial Statements Note 9—Other Post-Employment Benefits Plan Plan Description The City's single-employer defined benefit OPEB plan provides OPEB for all permanent full-time employees of the City. The City’s OPEB Plan is administered by the City. The City does not administer a trust and therefore does not issue a separate report. Benefits Provided All retirees of the City have the option under state law to continue their medical insurance coverage through the City from the time of retirement until the employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree must pay the full premium to continue coverage for medical and dental insurance. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees, whether the premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s younger and statistically healthier active employees. Per a special agreement, one retiree received City paid medical and dental premiums for six months during 2019. Employees Covered by Benefit Terms At January 1, 2019, membership included 15 retirees and others currently receiving benefits, 3 spouses receiving payments and 275 active plan members. Contributions All post-employment benefits are based on contractual agreements with employee groups. These contractual agreements do not include any specific contribution or funding requirements. Total OPEB Liability The City's total OPEB liability was determined by an actuarial valuation with a valuation date of January 1, 2018. Liabilities in this report were rolled forward to the measurement date of January 1, 2019. Actuarial Assumptions The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.5% Salary Increases 3%, average, including inflation Healthcare cost trend rates 6.5% as of January 1, 2018 grading to 5% over 6 years 93 City of Eden Prairie, Minnesota Notes to Financial Statements Mortality rates were based on the RP-2014 White Collar Mortality Tables with MP-2017 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). The actuarial assumptions used in the January 1, 2018 valuation were based on the results of an actuarial experience study for the period October 1, 2015-September 30, 2017. Discount Rate The discount rate used to measure the total OPEB liability was 3.3%. Since the plan is not funded by a trust, the discount rate is equal to the 20-year Municipal Bond Yield. Since the most recent valuation, the discount rate was changed from 3.3% to 3.8%. Changes in the Total OPEB Liability Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1% point lower (2.8%) or 1% point higher (4.8%) than the current discount rate: Total OPEB Liability Balances at 12/31/2018 $2,771,732 Changes for the Year: Service Cost 135,751 Interest 94,001 Changes in Plan 7,200 Changes of Assumptions (92,512) Benefit Payments (118,903) Net Changes 25,537 Balances at 12/31/19 $2,797,269 1% Decrease Discount Rate 1% Increase (2.8)% (3.8)% (4.8)% Total OPEB Liability 3,012,325$ 2,797,269$ 2,598,820$ 94 City of Eden Prairie, Minnesota Notes to Financial Statements Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower (5.25% decreasing to 4%) or 1% point higher (7.25% decreasing to 6%) than the current healthcare cost trend rates: OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the City recognized OPEB expense of $225,388. At December 31, 2019, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: The City’s contributions subsequent to the measurement date of $156,962, reported as deferred outflows of resources, will be recognized as a reduction of the total OPEB liability in the City’s fiscal year ended December 31, 2019. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Note 10—Leases As Lessee The City has entered into lease agreements for two space leases in connection with its liquor store operations. Rental expense, excluding a prorated share of real estate taxes and common area operating costs, for the year ended December 31, 2019, was $176,196. 1% Decrease (5.25% decreasing to 4%) Healthcare Cost Trend Rates (6.25% decreasing to 5% 1% Increase (7.25% decreasing to 6%) Total OPEB Liability 2,516,914$ 2,797,269$ 3,124,653$ Deferred Outflows of Resources Deferred Inflows of Resources Contributions Subsequent to the Measurement Date 156,962$ -$ Change in Assumptions - 80,948 Total 156,962$ 80,948$ OPEB Year Ended December 31:Expense 2020 (11,564)$ 2021 (11,564) 2022 (11,564) 2023 (11,564) 2024 (11,564) Thereafter (23,128) 95 City of Eden Prairie, Minnesota Notes to Financial Statements The following is an annual schedule of future minimum lease payments under these leases. The lease agreement with Prairie Village also includes a percentage rent to the landlord during the term in the amount equal to five percent (5%) of gross sales in excess of three million for years 2019-2022 and five percent (5%) of gross sales in excess of four million for years 2023-2028. The City has entered into a one year lease agreement with the Metropolitan Airports Commission for athletic fields. Rental expense for the year ended December 31, 2019, was $4,186. The City has entered into a one year lease agreement with the Metropolitan Airports Commission for community garden plots. Rental expense for the year ended December 31, 2019, was $502. The City has entered into a lease agreement with the Minnesota Department of Natural Resources for the Staring Lake trail right of way. Rental expense for the year ended December 31, 2019 was $520. The City will continue to pay $520 annually until the rental term expires on June 30, 2022. The City has entered into a lease agreement with CAPREF Eden Prairie LLC for office space used on the lower level of Eden Prairie Center. Rental expense for the year ended December 31, 2019 was $4,667. The City will continue to pay $4,667 per year for the remaining lease term which expires March 31, 2024. The City has entered into a five year lease agreement for fire safety equipment. In 2019, the City paid $10,895 for automatic external defibrillators, $12,800 for thermal imaging cameras, and $3,428 for gas detectors. These lease expenses will continue through 2020. As Lessor The City occupies approximately half of the City Center building. The remaining half was leased to the Eden Prairie Independent School District and United Natural Foods during 2019. The City has a lease agreement with the Eden Prairie Independent School District and received $362,284 of rental revenue for 2019. The City will receive rent annually through May 31, 2024. Annual rent will be $371,350 in 2020; $380,415 in 2021; $390,165 in 2022; $399,915 in 2023; $169,340 in 2024. The City also received the School District’s portion of Common Area Maintenance (CAM) for maintenance, insurance and taxes. Year Ended Prairie Prairie December 31 Village View 2020 88,008$ 100,188$ 2021 88,008 102,672 2022 96,012 105,237 2023 96,012 107,882 2024 104,016 110,607 thereafter 421,406 627,895 893,462$ 1,154,481$ 96 City of Eden Prairie, Minnesota Notes to Financial Statements United Natural Foods (UNFI), formerly SuperValu, started paying a lump sum gross rent on March 1, 2015. The City received $1,538,341 in gross rent for 2019. This gross rent amount is intended to cover both base rent and CAM. The City calculated UNFI’s 2019 CAM (based on the building’s CAM budget and square footage) at $672,480 leaving $865,861 as Rental Revenue. The City will receive Gross Rent annually through June 30, 2022. Gross rent received will be $1,575,188 in 2020, $1,612,034 in 2021, and $819,835 in 2022. The City has entered into a lease agreement with Pure Grace LLC for the rental of space located at the Smith Douglas More House. Rental income for the year ended December 31, 2019 was $64,026. This lease will expire on December 31, 2027. The City will receive $34,000 annually through 2027. The City will also receive additional rent if sales exceed $500,000. The City has entered into a lease agreement with Eden Prairie Montessori for the rental of space located at 8098 Glen Lane. This lease agreement commenced on July 1, 2017 and continues through June 30, 2022. Rental income for the year ended December 31, 2019 was $75,858. The City will receive $77,378 in 2020, $78,921 in 2021, and $39,852 in 2022. The City has entered into a lease agreement with Nguyen Family Inc d/b/a Lotus Nails Spa for 1,402 square feet of rental of space located in the Den Road Liquor store building. Rental income for the year ended December 31, 2019 was $31,078. The City will receive rent annually through 2024. Annual rent will be $32,246 from 2020 to 2023 and $10,749 in 2024. The City has entered into a lease agreement with Chuck & Don’s Pet Food & Supplies for 3,379 square feet of rental of space located in the Den Road Liquor store building. Rental income for the year ended December 31, 2019 was $51,952. The City will receive rent annually through January 31, 2029. Annual rent will be $91,233 in 2020, $92,219 in 2021, $93,908 in 2022, $95,598 in 2023, $97,287 in 2024, and $414,772 in years 2025-2029. The City has entered into a one year lease agreement with a tenant for the rental of space located at 9100 Riley Lake Road (the “Riley House”). Rental income for the year ended December 31, 2019 was $6,900. The City has entered into a lease agreement with True Friends, a Minnesota non-profit corporation, for the use of Camp Eden Wood. Base rent received was $1 and covers the entire 20 year lease term from January 1, 2015 until December 31, 2034. The City has entered into a lease agreement with Eden Prairie Historical Society for the use of Cummins-Phipps-Grill House. Base rent received is $1/year and will continue through March 31, 2020. The City has entered into a lease with Eden Prairie Schools for the use of the girls hockey locker room located at the Community Center. This lease commenced on October 1, 2018 and ends on September 30, 2021. The City received $4,356 in rental income for 2019 and will continue to receive $4,356 annually through 2020. 97 City of Eden Prairie, Minnesota Notes to Financial Statements The City has entered into communication facilities license agreements with AT&T, New Cingular Wireless, Great River Energy, Sprint, T-Mobile, and Verizon for cell antenna equipment placed on City property such as roofs and water tower tanks. In 2019, the City received $345,562 in rental income. Annual rent will be $360,797 in 2020, $367,166 in 2021, $383,329 in 2022, $385,284 in 2023, $372,329 in 2024, and $371,214 in 2025. The City has entered into small wireless facility collocation agreements with Verizon Wireless for cellular equipment placed on City property such as light poles and traffic signal poles. For 2019, the City received $4,800 in rental income. These rental agreements will continue until 2026 for which the City will receive $4,800 annually. The assets acquired for these lease agreements are as follows: Note 11—Long Term Debt Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. The City also issues assessment debt with governmental commitment to provide funds for the construction of streets and utilities. These bonds will be repaid from amounts levied against the property owners benefited by this construction. In the event that a deficiency exists because of unpaid or delinquent assessments at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are received. Assessment debt with governmental commitment has been issued for governmental activities. The City also issues tax abatement bonds. These bonds and interest thereon are payable from abatements collected from certain property in the City. If abatement revenues are insufficient to meet principal and interest due, the City is required to levy ad valorem taxes without limit as to rate or amount on all taxable property in the City to make up the deficiency. 2019 2019Governmental LiquorActivitiesFund Asset: Land 2,628,813$ 536,659$ Land Improvements 1,445,223 - Building 12,750,471 2,653,037 Less: Accumulated Depreciation (7,093,336) (1,475,844) Total 9,731,171$ 1,713,852$ Depreciation Expense 343,004$ 107,496$ 98 City of Eden Prairie, Minnesota Notes to Financial Statements Bonds currently outstanding (in thousands of dollars) are as follows: 2019 Interest Original Amount Maturities Rates Issue Outstanding Governmental Activity General Obligation Bonds G.O. Refunding Bonds 2011C 2021 1.25-2.10% 4,455$ 965$ G.O. Refunding Bonds 2012A 2026 2.00-2.63% 5,110 4,960 G.O. Refunding Bonds 2012B 2027 2.00-2.50% 3,170 2,190 Assess Debt With Govt Commit G.O. Revolving Bonds of 2010A 2025 2.00-4.00% 1,190 535 G.O. Revolving Bonds of 2011D 2025 2.00-2.63% 1,805 1,030 G.O. Revolving Bonds of 2012C 2021 2.00% 10,250 2,475 G.O. Bonds of 2016A 2032 2.30-3.00% 2,360 1,935 Tax Abatement Bonds G.O. Tax Abatement Bonds 2014A 2035 2.00-3.75% 17,155 15,900 Total Governmental Activity 45,495 29,990 Business Type Activitiy G.O. Water & Sewer Bonds 2011A 2020 .50-3.80% 1,260 145 G.O. Bonds 2011B 2020 2.50-3.00% 3,320 360 G.O. Bonds of 2016A 2027 2.30-3.00% 1,580 1,300 G.O. Water Bonds 2019A 2039 2.00-3.00% 4,920 4,920 Total Business Type Activity 11,080 6,725 Capital Lease 2021 1.93% 287 118 Total 56,862$ 36,833$ 99 City of Eden Prairie, Minnesota Notes to Financial Statements Annual debt service requirements to maturity for governmental activity bonds (in thousands of dollars) are as follows: Years Ending 12/31 Principal Interest Principal Interest Principal Interest Principal Interest 2020 1,030$ 172$ 1,710$ 133$ 900$ 506$ 3,640$ 811$ 2021 1,050 151 1,690 95 910 479 3,650 725 2022 1,100 129 480 70 925 451 2,505 650 2023 1,135 106 495 56 920 423 2,550 585 2024 1,150 80 500 42 930 396 2,580 518 2025 1,165 52 385 28 815 369 2,365 449 2026 1,205 22 105 17 850 344 2,160 383 2027 280 4 105 14 865 319 1,250 337 2028 - - 105 12 885 292 990 304 2029 - - 100 9 1,210 261 1,310 270 2030 - - 100 7 1,025 225 1,125 232 2031 - - 100 4 1,060 188 1,160 192 2032 - - 100 1 1,100 151 1,200 152 2033 - - - - 1,130 110 1,130 110 2034 - - - - 1,165 67 1,165 67 2035 - - - - 1,210 23 1,210 23 Total 8,115$ 716$ 5,975$ 488$ 15,900$ 4,604$ 29,990$ 5,808$ Total Assessment Debt with Govt Commitment G.O.Bonds Improv Bonds Tax Abatement Bonds 100 City of Eden Prairie, Minnesota Notes to Financial Statements Annual debt service requirements to maturity for business-type activity bonds (in thousands of dollars) are as follows: Years Ending 12/31 Principal Interest Total 2020 840$ 178$ 1,018$ 2021 340 153 493 2022 350 143 493 2023 365 132 497 2024 375 121 496 2025 385 110 495 2026 395 99 494 2027 410 88 498 2028 235 79 314 2029 245 72 317 2030 250 65 315 2031 260 57 317 2032 265 52 317 2033 270 46 316 2034 275 40 315 2035 280 34 314 2036 285 28 313 2037 295 22 317 2038 300 15 315 2039 305 7 312 Total 6,725$ 1,541$ 8,266$ Revenue Bonds 101 City of Eden Prairie, Minnesota Notes to Financial Statements Capital Lease In December 2016, the City entered into a new lease for financing the purchase of turn out gear for the Fire department. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of their future minimum lease payments as of the inception date. The gross amount of equipment acquired under this is $286,942. The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2019, were as follows: Changes in Long Term Debt Long-term debt activity for the year ended December 31, 2019, (in thousands of dollars) was as follows: Year Ended December 31, 2020 60,766$ 2021 60,766 Net Minimum Lease Payments 121,532 Less Amount Representing Interest 3,442 Present Value of Net Minimum Lease Payments 118,090$ Due Beginning Ending Within Balance Additions Reductions Balance One Year Governmental Activity G.O. Bonds 9,120$ -$ 1,005$ 8,115$ 1,030$ Assess. Debt With Govt Commit Improvement Bonds 7,860 - 1,885 5,975 1,710 Tax Abatement Bonds 16,345 - 445 15,900 900 Issuance Premium/Discount 637 - 104 533 - Total Bonds 33,962 - 3,439 30,523 3,640 Compensated Absences 1,964 1,980 1,836 2,108 1,061 Capital Lease 175 - 57 118 58 Total 36,101$ 1,980$ 5,332$ 32,749$ 4,759$ Business Type Activity Revenue Bonds 2,435$ 4,920$ 630$ 6,725$ 840$ Issuance Premium/Discount 77 182 23 236 - Total Bonds 2,512 5,102 653 6,961 840 Compensated Absences 329 345 335 339 171 Total 2,841$ 5,447$ 988$ 7,300$ 1,011$ 102 City of Eden Prairie, Minnesota Notes to Financial Statements For the governmental activities, the capital lease is generally paid with unassigned fund balances within the General fund. Compensated absences will be paid out of the Internal Service fund. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Call provisions are applicable to certain general obligation and special assessment bond issues. On December 5, 2019, The City issued $4,920,000 of G.O. Water Revenue Bonds, Series 2019A. The bonds bear interest at rates of 2% to 3%, with maturities extending to December 1, 2039. The proceeds will be used for the Ground Water Reservoir. Note 12—Risk Financing and Related Insurance Issues The City is exposed to various risk of loss related to torts; thefts of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. In order to protect against these risks of loss, the City purchases commercial insurance through the League of Minnesota Cities Insurance Trust, a public entity risk pool, for property insurance and workers compensation. This pool currently operates as a common risk management and insurance program for municipal entities. The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. During the year ended December 31, 2019, there were no significant reductions in insurance coverage from the prior year. Settled claims have not exceeded the City’s commercial coverage in any of the past three years. Note 13—Contingencies The City has been named in various legal actions. At the present time, there is no significant litigation pending that would cause a material effect on the financial statements if unfavorable rulings would result. While it is not possible to provide any probability of success or estimate of potential loss in defending any of these legal actions, the City expects to contest the allegations vigorously and does not believe these actions will have a material effect on the financial statements. A potential claim may be asserted against the City arising out of its membership in the Western Area Firing Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the late 1980’s, WAFTA became aware that the site was contaminated. Since that time, WAFTA has been working with the Minnesota Pollution Control Agency (MPCA) and other responsible parties to address the contamination issues on the site. At this time, there is not an estimated dollar amount of the cost to remediate the site nor has a claim been asserted against WAFTA or the City. 103 City of Eden Prairie, Minnesota Notes to Financial Statements Note 14—Contract Commitments At December 31, 2019, the City had commitments on various construction projects. These commitments totaled approximately $7,080,098. Note 15—Conduit Debt Obligations From time to time, the City has issued Industrial Revenue and Housing bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2019, there were 5 series of Housing Bonds outstanding with balances of $28,592,192. Note 16—Tax Abatements The City enters into property tax abatement agreements through the use of tax increment financing districts with local businesses under various Minnesota Statutes. Under these statutes the City annually abates taxes collected above the districts’ base tax capacity which is established during adoption of the tax increment district. These agreements are established to foster economic development and redevelopment through creating jobs, removing blight and providing affordable housing. The City uses Minnesota Statutes 469.001 to 469.047 and 469.174 to 469.179 (The Tax Increment Act) to create these districts. For the fiscal year ended December 31, 2019, the City has two agreements established under Minnesota Statute 469.001 to 469.047 which resulted in property taxes totaling $390,017 being abated. These agreements include: • A pay as you go note to bring a substandard commercial property up to standards. The abatement amount was $105,925 • A pay as you go note to convert substandard property into an office and retail complex. The abatement amounted was $284,093. 104 City of Eden Prairie, Minnesota Notes to Financial Statements For the fiscal year ended December 31, 2019, the City has four agreements established under Minnesota Statute 469.174 to 469.179 (The Tax Increment Act) which resulted in property taxes totaling $1,246,882 being abated. The following agreements each exceeded 10 percent of the total amount abated, during the year: • A pay as you go note to finance the cost of a senior rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $596,337. • A pay as you go note to finance the cost of a rental apartment project that provides housing in part for persons or families with low to moderate income. The abatement amount was $345,146. • A pay as you go note to finance the cost of a senior rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $274,325. Note 17—Fund Balance Classification At December 31, 2019, a summary of the governmental fund balance classifications are as follows: Public Capital Shady Oak Eden OtherImprovement Improvement Road Prairie General Govt General Construction Maintenance North Road LRT Funds Total Nonspendable:Prepaid Items 69,611$ -$ -$ -$ -$ -$ 65,230$ 134,841$ Cemetery Perpetual Care - - - - - - 155,789 155,789Total Nonspendable 69,611 - - - - - 221,019 290,630 Restricted for:Debt Service - - - - - - 4,213,722 4,213,722 Special Assessments - - - 1,131,551 - - - 1,131,551 Park Dedication Fees - - - - - - 1,293,658 1,293,658Franchise Fee - - - - - - 3,641,045 3,641,045 Grants 11,148 - - - - - - 11,148 Cemetary - - - - - - 78,743 78,743 Recycling - - - - - - 10,495 10,495 Historical and Cultural - - - - - - 35,183 35,183Tax Increment - - - - - - 2,926,585 2,926,585 11,148 - - 1,131,551 - - 12,199,431 13,342,130 Assigned to: Capital Projects - - 13,992,317 - - - 4,270,327 18,262,644 Improvement Projects - 739,794 - - - - 5,994,397 6,734,191 Total Assigned - 739,794 13,992,317 - - - 10,264,724 24,996,835 Unassigned: Budget Stabilization 7,298,618 - - - - - - 7,298,618 Working Capital 17,979,870 - - - - - - 17,979,870Unassigned76,236 - - - (733,336) (68,317) (1,417,132) (2,142,549) Total Unassigned 25,354,724 - - - (733,336) (68,317) (1,417,132) 23,135,939 Total Fund Balance 25,435,483$ 739,794$ 13,992,317$ 1,131,551$ (733,336)$ (68,317)$ 21,268,042$ 61,765,534$ 105 City of Eden Prairie, Minnesota Notes to Financial Statements Note 18—Subsequent Events Subsequent to year end, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. Specific to the City of Eden Prairie, COVID-19 may impact various parts of its 2020 operations and financial results including, but not limited to, costs for emergency preparedness and closure of Recreational Facilities. Management believes the City is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events occurred subsequent to year end and are still developing. Note 19 – Change in Accounting Principle During the year ended December 31, 2019, the City changed policies related to its accounting for fiduciary activities by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities. The statement provides guidance regarding the identification of fiduciary activities for accounting and reporting purposes and how these activities should be reported. Beginning net position of the Fiduciary Funds was restated to reflect this change, as shown below. Fiduciary Funds Net Position, December 31, 2018, as previously stated -$ Change in Accounting Principle 599,387 Net Position, December 31, 2018, as restated 599,387$ 106 REQUIRED SUPPLEMENTARY INFORMATION 107 City of Eden Prairie, Minnesota Required Supplemental Information Modified Approach for Infrastructure Assets Condition Rating of the City’s Street System: Comparison of Needed-to-Actual Maintenance/Preservation: The condition of road pavement is measured using Good Pointe’s Icon pavement management system. Pavements in the City of Eden Prairie are visually inspected using the Paver-based Pavement Condition Index (PCI) methodology. The methodology is based on a numeric rating system ranging from 100 for a newly surfaced pavement to 0 for a failed pavement. The condition index is used to classify roads in excellent condition (85-100), very good condition (70-84), good condition (55-69), fair condition (40-54), poor condition (25-39), very poor condition (10-24) and failed condition (0-9). It is the City’s policy to maintain an average PCI of 70 percent. Average PCI 2019 84.4% 2016 76.9% 2013 79.7% 2010 81.1% 2007 82.3% 2004 80.4% 2019 2018 2017 2016 2015 Budget 2,954,500 3,372,500$ 2,879,533$ 3,037,533$ 2,923,119$ Actual 3,154,439 2,700,544 2,802,882 2,284,255 2,711,267 Difference 199,939$ (671,956)$ (76,651)$ (753,278)$ (211,852)$ 108 City of Eden Prairie, Minnesota Required Supplemental Information Other Post-Employment Benefits Plan Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Less than ten years is presented due to information not available. Will add additional years as they become available. January 1, 2019 January 1, 2018 Total OPEB Liability Service Cost 135,751$ 143,922$ Interest 94,001 91,272 Changes in Plan 7,200 - Changes of Assumptions (92,512) - Benefit Payments (118,903) (169,360) Net Change in Total OPEB Liability 25,537 65,834 Total OPEB Liability - Beginning 2,771,732 2,705,898 Total OPEB Liability - Ending 2,797,269$ 2,771,732$ Total OPEB Liability 2,797,269$ 2,771,732$ Covered Payroll 22,281,528$ 21,632,551$ City's Total OPEB Liability as a Percentage of the Covered Payroll 12.55%12.81% Measurement Date 109 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Proportionate Share of Net Pension Liability Public Employees General Employees Retirement Fund Last Ten Years* Fiscal Year Ending Employer's Proportion (Percentage) of the Net Pension Liability (Asset) Employer's Proportionate Share (Amount) of the Net Pension Liability (Asset) (a) State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City (b) Employer's Proportionate Share of the Net Pension Liability and the State's Proportionate Share of the Net Pension Liability Associated with the City (a+b) Employer's Covered Payroll** (c) Employer's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll ((a+b)/c) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability June 30, 2015 0.2525%13,085,860$ -$ 13,085,860$ 14,836,066$ 88.20%78.2% June 30, 2016 0.2482%20,152,608 263,262 20,415,870 15,161,268 134.66%68.9% June 30, 2017 0.2536%16,189,657 203,595 16,393,252 16,339,119 100.33%75.9% June 30, 2018 0.2419%13,419,620 440,302 13,859,922 16,251,609 85.28%79.5% June 30, 2019 0.2365%13,075,555 406,316 13,481,871 16,728,911 80.59%80.2% * This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages." 110 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Proportionate Share of Net Pension Liability Public Employees Police and Fire Fund Last Ten Years Fiscal Year Ending Employer's Proportion (Percentage) of the Net Pension Liability (Asset) Employer's Proportionate Share (Amount) of the Net Pension Liability (Asset) (a) Employer's Covered Payroll** (b) Employer's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (a/b) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability June 30, 2015 0.7770%8,828,538$ 7,116,963$ 124.05%86.6% June 30, 2016 0.7580%30,419,859 7,302,618 416.56%63.9% June 30, 2017 0.7510%10,139,393 7,706,718 131.57%85.4% June 30, 2018 0.7296%7,776,785 7,689,360 101.14%88.8% June 30, 2019 0.7299%7,770,523 7,702,165 100.89%89.3% * This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages." 111 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Proportionate Share of Net Pension Liability Eden Prairie Fire Relief 2018 2017 2016 2015 2014 Total Pension Liability Service Cost 498,110$ 485,961$ 434,587$ 449,426$ 413,646$ Interest 1,147,434 1,123,468 1,151,849 1,104,701 1,083,202 Differences Between Expected and Actual Experience (29,793) - (233,976) - - Changes of Assumptions 246,754 - 935,047 - - Changes of Benefit Terms 338,844 - - - - Benefit Payments, Including Member Contribution Refunds (1,449,720) (1,084,111) (1,135,264) (1,270,544) (1,027,216) Net Change in Total Pension Liability 751,629 525,318 1,152,243 283,583 469,632 Total Pension Liability - Beginning 21,008,095 20,482,777 19,330,534 19,046,951 18,577,319 Total Pension Liability - Ending (a)21,759,724 21,008,095 20,482,777 19,330,534 19,046,951 Plan Fiduciary Net Position Municipal Contributions 523,283 387,665 388,664 398,395 488,073 State Contributions 457,741 448,846 448,848 437,948 414,343 Net Investment Income (1,274,855) 2,776,128 892,090 (393,362) 646,363 Benefit Payments (1,449,720) (1,084,111) (1,137,136) (1,270,544) (1,027,216) Administrative Expenses (30,772) (34,700) (56,576) (26,323) (37,158) Other Changes 254 671 4,426 - 81,893 Net Change in Fiduciary Net Position (1,774,069) 2,494,499 540,316 (853,886) 566,298 Fiduciary Net Position - Beginning 22,581,934 20,087,435 19,547,119 20,401,005 19,834,707 Fiduciary Net Position - Ending (b)20,807,865 22,581,934 20,087,435 19,547,119 20,401,005 Association's Net Pension Liability/(Asset) - Ending (a) - (b)951,859$ (1,573,839)$ 395,342$ (216,585)$ (1,354,054)$ Fiduciary Net Position as a Percentage of the Total Pension Liability 95.63% 107.49% 98.07%101.12%107.11% Covered Payroll N/A N/A N/A N/A N/A Net Pension Liability/(Asset) as a Percentage of Covered Payroll N/A N/A N/A N/A N/A 112 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Public Employees General Employees Retirement Fund Last Ten Years* Year Ending Statutorily Required Contributions (a) Contributions in Relation to the Statutorily Required Contributions (b) Contribution Deficiency (Excess) (a-b) Covered Payroll** (d) Contributions as a Percentage of Covered Payroll (b/d) December 31, 2015 1,164,110$ 1,164,110$ -$ 15,528,311$ 7.50% December 31, 2016 1,157,735 1,157,735 - 15,436,692 7.50% December 31, 2017 1,199,292 1,199,292 - 15,990,664 7.50% December 31, 2018 1,231,656 1,231,656 - 16,470,531 7.48% December 31, 2019 1,286,909 1,286,909 - 17,163,209 7.50% * This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages." 113 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Public Employees Police and Fire Fund Last Ten Years* Year Ending Statutorily Required Contributions (a) Contributions in Relation to the Statutorily Required Contributions (b) Contribution Deficiency (Excess) (a-b) Covered Payroll** (d) Contributions as a Percentage of Covered Payroll (b/d) December 31, 2015 1,215,450$ 1,215,450$ -$ 7,509,128$ 16.2% December 31, 2016 1,188,923 1,188,923 - 7,339,334 16.2% December 31, 2017 1,224,005 1,224,005 - 7,555,723 16.2% December 31, 2018 1,260,639 1,260,639 - 7,780,987 16.2% December 31, 2019 1,342,840 1,342,840 - 7,922,043 16.95% * This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages." 114 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Eden Prairie Fire Relief Last Ten Years 2019 2018 2017 2016 2015 Statutorily Required Contribution 203,986$ 517,955$ 382,336$ 388,664$ 398,395$ Contributions in Relation to the Statutorily Required Contribution (203,986) (517,955) (382,336) (388,664) (393,065) Contribution Deficiency (Excess)-$ -$ -$ -$ 5,330$ 2014 2013 2012 2011 2010 Statutorily Required Contribution 488,073$ 582,972$ 625,910$ 830,077$ 1,129,002$ Contributions in Relation to the Statutorily Required Contribution (488,073) (582,972) (625,910) (830,077) (1,129,002) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ 115 City of Eden Prairie, Minnesota Notes to Required Supplemental Information Notes to Schedules of Changes in Net Pension Liabilities and Related Ratios Other Post-Employment Benefits Plan 2019 Changes Changes in Plan Provisions: •Per a special agreement, one retiree received City paid medical and dental premiums for sixmonths during 2019. Changes in Actuarial Assumptions: •The discount rate was changed from 3.30% to 3.80%.General Employees Fund 2019 Changes Changes in Actuarial Assumptions: •The morality projection scale was changed from MP-2017 to MP-2018Changes in Plan Provisions: •The Employer supplemental contribution was changed prospectively, decreasing from $31million to $21 million per year. The State’s special funding contribution was changed prospectively, requiring $16 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions: •The morality projection scale was changed from MP-2015 to MP-2017. •The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50percent per year thereafter to 1.25 percent per year.2017 Changes Changes in Plan Provisions: •The State’s special funding contribution increased from $6 million to $16 million.Changes in Actuarial Assumptions: •The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active membersand 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.00 percent for vested deferred member liability and 3.00 percent for non-vested deferred member liability. •The assumed post-retirement benefit increase rate was changed from 1.00 percent per year forall years to 1.00 percent per year through 2044 and 2.50 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions: •The assumed post-retirement benefit increase rate was changed from 1.00 percent per yearthrough 2035 and 2.50 percent per year thereafter to 1.00 percent per year for all years. •The assumed investment return was changed from 7.90 percent to 7.50 percent. The singlediscount rate was changed from 7.90 percent to 7.50 percent. 116 City of Eden Prairie, Minnesota Notes to Required Supplemental Information •Other assumptions were changed pursuant to the experience study dated June 30, 2015. Theassumed future salary increases, payroll growth, and inflation were decreased by 0.25 percentto 3.25 percent for payroll growth and 2.50 percent for inflation.2015 Changes Changes in Plan Provisions: •On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the GeneralEmployees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State’s contribution of $6 million, which meets the special funding situation definition, is due September 2015. Changes in Actuarial Assumptions: •The assumed post-retirement benefit increase rate was changed from 1.00 percent per yearthrough 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2035 and 2.50 percent per year thereafter. Police and Fire Fund 2019 Changes Changes in Actuarial Assumptions: •The morality projection scale was changed from MP-2017 to MP-20182018 Changes Changes in Actuarial Assumptions: •The morality projection scale was changed from MP-2016 to MP-2017.2017 Changes Changes in Actuarial Assumptions: •Assumed salary increases were changed as recommended in the June 30, 2016 experience study.The net effect is proposed rates that average 0.34 percent lower than the previous rates. •Assumed rates of retirement were changed, resulting in fewer retirements. •The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferredmembers. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. •The base mortality table for healthy annuitants was changed from the RP-2000 fullygenerational table to the RP-2014 fully generational table (with a base year of 2006), with malerates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AAto Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. •Assumed termination rates were decreased to 3.0 percent for the first three years of service.Rates beyond the select period of three years were adjusted, resulting in more expectedterminations overall. •Assumed percentage of married female members was decreased from 65 percent to 60 percent. 117 City of Eden Prairie, Minnesota Notes to Required Supplemental Information •Assumed age difference was changed from separate assumptions for male members (wivesassumed to be three years younger) and female members (husbands assumed to be four yearsolder) to the assumption that males are two years older than females. •The assumed percentage of female members electing Joint and Survivor annuities wasincreased. •The assumed post-retirement benefit increase rate was changed from 1.00 percent for all yearsto 1.00 percent per year through 2064 and 2.50 percent thereafter. •The Single Discount Rate was changed from 5.60 percent per annum to 7.50 percent per annum.2016 Changes Changes in Actuarial Assumptions: •The assumed post-retirement benefit increase rate was changed from 1.00 percent per yearthrough 2037 and 2.50 percent thereafter to 1.00 percent per year for all future years. •The assumed investment return was changed from 7.90 percent to 7.50 percent. The singlediscount rate changed from 7.90 percent to 5.60 percent. •The assumed future salary increases, payroll growth, and inflation were decreased by 0.25percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 Changes Changes in Plan Provisions: •The post-retirement benefit increase to be paid after attainment of the 90 percent fundingthreshold was changed, from inflation up to 2.50 percent, to a fixed rate of 2.50 percent. Changes in Actuarial Assumptions: •The assumed post-retirement benefit increase rate was changed from 1.00 percent per yearthrough 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2037 and 2.50 percent per year thereafter. 118 COMBINING FUND STATEMENTS 119 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Housing Redevelopment Authority (HRA Grant) - This fund accounts for monies received under Title I of the Housing and Community Development Act of 1974 and other related housing activities. Pleasant Hills Cemetery - This fund accounts for the current operations of the City cemetery including maintenance costs and lot sales. Recycling - This fund accounts for monies received from Hennepin County's household waste rebate programs. All dollars received are to be refunded to eligible households within Eden Prairie. Historical and Cultural - This fund accumulates revenue from the sale of a book on Eden Prairie's 100-year history and the sale of old street signs. The book was donated to the City by the Eden Prairie Historical Society, with revenues earmarked for expenditure on the preservation of the history of Eden Prairie. Debt Service Funds Debt service funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Capital Equipment Notes 2008A – This fund is used to account for the accumulation of tax revenues needed to repay certificates issued to finance the 20/40/15 project, regional radio conversion project and two fire trucks. General Obligation Refunding Bonds 2016A – This fund accounts for the refunding of the G.O. Bonds 2008B which accounted for the accumulation of resources needed to repay bonds issued to finance the construction of streets, lateral utilities, and drainage for the Flying Cloud Drive construction project. The primary sources of repayment on these bonds are special assessments levied on benefited properties. Capital Equipment Notes 2009B – This fund is used to account for the accumulation of tax revenues needed to repay certificates issued to finance the 20/40/15 project and Police/Fire software upgrade. General Obligation Improvement Bonds 2010A – This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction costs for the Singletree Lane project. 120 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Debt Service Funds (Continued) General Obligation Refunding 2011C – This fund accounts for the refunding of the G.O. Park Referendum Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for various trails, park improvements and the community center. General Obligation Refunding 2011D – This fund accounts for the refunding of the G.O. Improvement Revolving Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance the construction at 212 and Charleston Road. General Obligation Refunding 2012A – This fund accounts for the refunding of the G.O. Bonds 2005C which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for various trails, park improvements and the community center. General Obligation Refunding 2012B – This fund accounts for the refunding of the G.O. Bonds 2006B which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for the new fire station. General Obligation Improvement Bonds 2012C– This fund is used to account for the accumulation of special assessments needed to repay bonds issued to finance the Shady Oak Road North project. General Obligation Tax Abatement 2014A – This fund accounts for the accumulation of tax revenues needed to repay bonds issued to finance construction of the Aquatics & Fitness Expansion. General Obligation Bonds 2016A – This fund is used to account for the accumulation of special assessments needed to repay bonds issued to finance the West 70th project. Capital Project Funds Capital projects funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for capital outlay. Police - This fund accounts for all confiscated money, and / or property obtained through drug-related criminal arrests and compliance fines. The funds are earmarked for expenditures on law enforcement operations. E-911 - This fund accounts for monies received from the State of Minnesota to be used for the E-911 emergency system. Senior Board - This fund was established to account for monies received for Senior Awareness Week. 121 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Capital Project Funds (Continued) Park Improvement - This fund accounts for the park dedication fees, grants, and other contributions earmarked for expenditure on park acquisition and development. CIP Trails - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City trails. CIP Pavement Management - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City streets. Economic Development – This fund accounts for money set aside to assist in the redevelopment of the City. Project – This fund accounts for tax increment revenue set aside to assist in the redevelopment of the City. HRA – This fund accounts for the accumulation of resources to be used for economic development projects. Tree Replacement – This fund accounts for tree replacement fees that are collected from permittees who have demonstrated that it is not possible or reasonable to plant all or some of the required replacement trees on site. The revenue will be used for planting of trees and natural enhancements within the City. Transportation - This fund accounts for proceeds of state aid. This revenue is used to finance street improvements. Shady Oak Road South – This fund accounts for the accumulation of resources to be used for the reconstruction of Shady Oak Road from Flying Cloud Drive to Rowland Road. Cable PEG (Public, Educational, and Government) – This fund accounts for the revenues collected from Comcast. These funds will be used for the production of PEG Access programming. Eden Prairie Rd Connect to Flying Cloud – This fund accounts for the accumulation of resources to be used for the construction of road from Frederick Place to north of Riley Creek. Homeowners Improvements Area – This fund accounts for the accumulation of resources to be used for Housing Improvements to the Fairway Woods II Condominiums. West 70th Street Extension – This fund accounts for the accumulation of resources to be used for the extension of West 70th from its existing cul-de-sac to Flying Cloud Drive. 122 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Capital Project Funds (Continued) SingleTree Lane South – This fund accounts for the accumulation of resources to be used for the streetscaping, lighting and landscaping improvements for the southern half of Singletree Lane. Permanent Funds Permanent funds are used to account for resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs that is, for the benefit of the City or its citizens. Cemetery Perpetual Care - This fund was established to account for funds dedicated for cemetery maintenance in accordance with state statutes. 123 Page 1 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 Pleasant Historical HRA Hills and Grant Cemetery Recycling Cultural Total ASSETS Cash and Investments $- $40,822 $34,570 $35,078 $110,470 ReceivablesAccounts 10,000 1,000 - - 11,000 Interest - 136 - 108 244 Due from Other Governments 28,060 - - - 28,060 Unremitted Taxes - - - - - Unremitted Special Assessments - - - - - Deferred Special Assessments - - - - - Special Deferred Special Assessments - - - - - Due from Other Funds - 15,367 - - 15,367 Prepaid Items 130 - - - 130 Land Held for Resale - - - - - Notes Receivable - - - - - Total Assets $38,190 $57,325 $34,570 $35,186 $165,271 LIABILITIES Accounts and Contracts Payable $21,004 $1,631 $24,075 $3 $46,713 Salaries Payable 1,269 - - - 1,269 Investment Interest Payable - - - - - Due to Other Governments 550 - - - 550 Due to Other Funds 15,367 - - - 15,367 Unearned Revenue - 725 - - 725 Total Liabilities 38,190 2,356 24,075 3 64,624 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments - - - - - Total Deferred Inflows of Resources - - - - - FUND BALANCES Nonspendable 130 - - - 130 Restricted - 54,969 10,495 35,183 100,647 Assigned - - - - - Unassigned (130) - - - (130) Total Fund Balance - 54,969 10,495 35,183 100,647 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $38,190 $57,325 $34,570 $35,186 $165,271 Special Revenue 124 Page 2 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 ASSETS Cash and InvestmentsReceivablesAccountsInterest Due from Other Governments Unremitted TaxesUnremitted Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid ItemsLand Held for ResaleNotes ReceivableTotal Assets LIABILITIES Accounts and Contracts PayableSalaries PayableInvestment Interest PayableDue to Other Governments Due to Other Funds Unearned RevenueTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances General General General GeneralCapitalObligation Capital Obligation Obligation Obligation Equip Refunding Equip Improvement Refunding Refunding Notes Bonds Notes Bonds Bonds Bonds 2008A 2016A 2009B 2010A 2011C 2011D $- $410,124 $- $142,168 $881,609 $517,724 - - - - - - - 1,028 - 489 1,386 1,637 - - - - - - - - - - 2,494 - - - - - - 395 - 440,000 - 452,836 - 928,002 - - - - - 120,761 - - - - - - - - - - - - - - - - - - - - - - - - $- $851,152 $- $595,493 $885,489 $1,568,519 $- $119 $- $357 $357 $357 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119 - 357 357 357 - 440,000 - 452,836 - 1,048,763 - 440,000 - 452,836 - 1,048,763 - - - - - - - 411,033 - 142,300 885,132 519,399 - - - - - - - - - - - - - 411,033 - 142,300 885,132 519,399 $- $851,152 $- $595,493 $885,489 $1,568,519 Debt Service 125 Page 3 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 ASSETS Cash and InvestmentsReceivablesAccountsInterest Due from Other Governments Unremitted TaxesUnremitted Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid ItemsLand Held for ResaleNotes ReceivableTotal Assets LIABILITIES Accounts and Contracts PayableSalaries PayableInvestment Interest PayableDue to Other Governments Due to Other Funds Unearned RevenueTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances General General General GeneralObligationObligationObligationObligation General Refunding Refunding Improvement Tax Abatement Obligation Bonds Bonds Bonds Bonds Bonds 2012A 2012B 2012C 2014A 2016A Total $437,285 $469,520 $20,210 $1,232,322 $92,443 $4,203,405 - - - - - - 1,169 887 - 1,334 483 8,413 - - - - - - 538 994 - 4,479 - 8,505 - - - - - 395 - - - - 1,268,896 3,089,734 - - - - - 120,761 - - - - - - - - - - - - - - - - - - - - - - - - $438,992 $471,401 $20,210 $1,238,135 $1,361,822 $7,431,213 $357 $357 $357 $357 $119 $2,737 - - - - - - - - 4,259 - - 4,259 - - - - - - - - - - - - - - - - - - 357 357 4,616 357 119 6,996 - - - - 1,268,896 3,210,495 - - - - 1,268,896 3,210,495 - - - - - - 438,635 471,044 15,594 1,237,778 92,807 4,213,722 - - - - - - - - - - - - 438,635 471,044 15,594 1,237,778 92,807 4,213,722 $438,992 $471,401 $20,210 $1,238,135 $1,361,822 $7,431,213 Debt Service 126 Page 4 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 ASSETS Cash and InvestmentsReceivablesAccountsInterest Due from Other Governments Unremitted TaxesUnremitted Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid ItemsLand Held for ResaleNotes ReceivableTotal Assets LIABILITIES Accounts and Contracts PayableSalaries PayableInvestment Interest PayableDue to Other Governments Due to Other Funds Unearned RevenueTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances Senior Park CIP Police E-911 Board Improvement Trails $57,806 $8,306 $16,679 $2,260,925 $265,171 6,986 - - - - 171 90 53 4,739 58 - 6,826 - 57,750 - - - - - - - - - - - - - - - 105,001 - - - - - - - - - - - 59,203 - - - - - - - - - - - - - $64,963 $74,425 $16,732 $2,323,414 $370,230 $18,992 $324 $360 $131,265 $10,694 - - - - - - - - - - - - - - - - - - - - - - - 449,646 - 18,992 324 360 580,911 10,694 - - - - 105,001 - - - - 105,001 - 59,203 - - - - - - 1,170,054 - 45,971 14,898 16,372 572,449 254,535 - - - - - 45,971 74,101 16,372 1,742,503 254,535 $64,963 $74,425 $16,732 $2,323,414 $370,230 Capital Projects 127 Page 5 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 ASSETS Cash and InvestmentsReceivablesAccountsInterest Due from Other Governments Unremitted TaxesUnremitted Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid ItemsLand Held for ResaleNotes ReceivableTotal Assets LIABILITIES Accounts and Contracts PayableSalaries PayableInvestment Interest PayableDue to Other Governments Due to Other Funds Unearned RevenueTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances CIP Economic Pavement Development Project Tree Management Fund Fund HRA Replacement $3,612,831 $3,001,333 $3,669,352 $274,671 $123,537 865,261 2,387 - - - 12,545 11,897 11,876 747 67 - - - - - - - - 686 - - - - - - - - - - - - - - - - - - - - - - - - - - - 784,000 - - - - 144,408 1,021,797 - - $4,490,637 $3,944,025 $4,703,025 $276,104 $123,604 $7,958 $32,982 $- $- $- - - - 4,149 - - - - - - - - 6,646 - - - - - - - - - - - - 7,958 32,982 6,646 4,149 - - - - - - - - - - - - - - - - 3,432,984 - 2,926,585 - 123,604 1,049,695 3,911,043 1,769,794 271,955 - - - - - - 4,482,679 3,911,043 4,696,379 271,955 123,604 $4,490,637 $3,944,025 $4,703,025 $276,104 $123,604 Capital Projects 128 Page 6 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 ASSETS Cash and InvestmentsReceivablesAccountsInterest Due from Other Governments Unremitted TaxesUnremitted Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid ItemsLand Held for ResaleNotes ReceivableTotal Assets LIABILITIES Accounts and Contracts PayableSalaries PayableInvestment Interest PayableDue to Other Governments Due to Other Funds Unearned RevenueTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances EdenPrairie Rd Shady Oak Connect to Homeowners Road Cable Flying Improvements Transportation South PEG Cloud Area $1,040,733 $- $216,927 $- $- - - 24,379 - - 10,554 - 653 167 - 75,000 - - - - - - - - - - - - - - - - - - 39,960 - - - - - 1,258,347 - - - - - - 5,897 - - - - - - - - - - - - $2,384,634 $- $247,856 $167 $39,960 $36,710 $- $23,810 $150,143 $- - - - - - - - - - 81 - - - 292 - - - - 1,189,732 18,287 - - - - - 36,710 - 23,810 1,340,167 18,368 - - - - 39,960 - - - - 39,960 - - 5,897 - - - - 208,061 - - 2,347,924 - 10,088 - - - - - (1,340,000) (18,368) 2,347,924 - 224,046 (1,340,000) (18,368) $2,384,634 $- $247,856 $167 $39,960 Capital Projects 129 Page 7 of 7 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2019 ASSETS Cash and InvestmentsReceivablesAccountsInterest Due from Other Governments Unremitted TaxesUnremitted Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid ItemsLand Held for ResaleNotes ReceivableTotal Assets LIABILITIES Accounts and Contracts PayableSalaries PayableInvestment Interest PayableDue to Other Governments Due to Other Funds Unearned RevenueTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances Cemetery Total West 70th SingleTree Perpetual Nonmajor Street Lane Care Governmental Extension South Total Fund Funds $- $- $14,548,271 $178,539 $19,040,685 - 12,172 911,185 100 922,285 - 579 54,196 924 63,777 - - 139,576 - 167,636 - - 686 - 9,191 - - - - 395 - - 144,961 - 3,234,695 - - - - 120,761 - - 1,258,347 - 1,273,714 - - 65,100 - 65,230 - - 784,000 - 784,000 - - 1,166,205 - 1,166,205 $- $12,751 $19,072,527 $179,563 $26,848,574 $- $21,057 $434,295 $- $483,745 - - 4,149 - 5,418 - - 81 - 4,340 - - 6,938 - 7,488 - 50,328 1,258,347 - 1,273,714 - - 449,646 - 450,371 - 71,385 2,153,456 - 2,225,076 - - 144,961 - 3,355,456 - - 144,961 - 3,355,456 - - 65,100 155,789 221,019 - - 7,861,288 23,774 12,199,431 - - 10,264,724 - 10,264,724 - (58,634) (1,417,002) - (1,417,132) - (58,634) 16,774,110 179,563 21,268,042 $- $12,751 $19,072,527 $179,563 $26,848,574 PermanentFundCapital Projects 130 This page is intentionally left blank 131 Page 1 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 Pleasant Historical HRA Hills andGrantCemeteryRecyclingCultural Total REVENUES General Property Taxes $- $- $- $- $- Special Assessments - - - - - Licenses and Permits - - - - - Intergovernmental Revenue 330,159 - 118,244 - 448,403 Fines and Forfeits - - - - - Investment Income - 1,218 - 976 2,194 Rental - - - - - Other Fees - 30,335 - - 30,335 Contributions and Donations - - - - - Miscellaneous - 4 210 4,983 5,197 Total Revenues 330,159 31,557 118,454 5,959 486,129 EXPENDITURES CurrentCommunity Development 330,159 - - 850 331,009 Police - - - - - Public Works - - 119,495 - 119,495 Parks and Recreation - 136,573 - - 136,573 Interest on Interfund Borrowing - - - - - Capital OutlayAdministration - - - - - Public Works - - - - - Parks and Recreation - - - - - Debt ServicePrincipal - - - - - Interest - - - - - Fiscal Agent Fees - - - - - Total Expenditures 330,159 136,573 119,495 850 587,077 Excess of Revenues Over (Under) Expenditures - (105,016) (1,041) 5,109 (100,948) OTHER FINANCING SOURCES (USES) Transfers In - 114,945 - - 114,945 Transfers Out - - - - - Total Other Financing Sources (Uses)- 114,945 - - 114,945 Net Change in Fund Balances - 9,929 (1,041) 5,109 13,997 Fund Balances (Deficit) - Beginning - 45,040 11,536 30,074 86,650 Fund Balances (Deficit) - Ending $- $54,969 $10,495 $35,183 $100,647 Special Revenue 132 Page 2 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental RevenueFines and ForfeitsInvestment Income RentalOther FeesContributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Interest on Interfund Borrowing Capital Outlay AdministrationPublic WorksParks and RecreationDebt ServicePrincipalInterest Fiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers InTransfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending General General General General Capital Obligation Capital Obligation Obligation Obligation Equip Refunding Equip Improvement Refunding Refunding Notes Bonds Notes Bonds Bonds Bonds 2008A 2016A 2009B 2010A 2011C 2011D $- $- $- $- $692,163 $- - 144,378 - 103,216 - 224,889 - - - - - - - - - - - - - - - - - - 20 9,242 - 4,381 12,375 14,722 - - - - - - - - - - - - - - - - - - - - - - - - 20 153,620 - 107,597 704,538 239,611 - - - - - - - - - - - - - - - - - - - - - - - - - - 56 - - - - - - - - - - - - - - - - - - - - - - 105,000 - 80,000 720,000 160,000 - 18,675 - 22,630 24,915 27,537 - 244 - 882 1,008 1,007 - 123,919 56 103,512 745,923 188,544 20 29,701 (56) 4,085 (41,385) 51,067 - - - - - - (23,836) - (10,113) - - - (23,836) - (10,113) - - - (23,816) 29,701 (10,169) 4,085 (41,385) 51,067 23,816 381,332 10,169 138,215 926,517 468,332 $- $411,033 $- $142,300 $885,132 $519,399 Debt Service 133 Page 3 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental RevenueFines and ForfeitsInvestment Income RentalOther FeesContributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Interest on Interfund Borrowing Capital Outlay AdministrationPublic WorksParks and RecreationDebt ServicePrincipalInterest Fiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers InTransfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending General General General General Obligation Obligation Obligation Obligation General Refunding Refunding Improvement Tax Abatement Obligation Bonds Bonds Bonds Bonds Bonds 2012A 2012B 2012C 2014A 2016A Total $149,168 $307,611 $- $1,386,234 $- $2,535,176 - - - - - 472,483 - - - - - - - - - - - - - - - - - - 10,481 7,948 - 12,087 - 71,256 - - - - - - - - - - - - - - - - - - - - - - - - 159,649 315,559 - 1,398,321 - 3,078,915 - - - - - - - - - - - - - - - - - - - - - - - - - - 38,102 - 3,185 41,343 - - - - - - - - - - - - - - - - - - 30,000 255,000 1,430,000 445,000 110,000 3,335,000 116,156 49,856 63,800 525,887 39,210 888,666 1,007 1,007 1,232 4,207 244 10,838 147,163 305,863 1,533,134 975,094 152,639 4,275,847 12,486 9,696 (1,533,134) 423,227 (152,639) (1,196,932) - - 1,500,000 - 238,417 1,738,417 - - - - - (33,949) - - 1,500,000 - 238,417 1,704,468 12,486 9,696 (33,134) 423,227 85,778 507,536 426,149 461,348 48,728 814,551 7,029 3,706,186 $438,635 $471,044 $15,594 $1,237,778 $92,807 $4,213,722 Debt Service 134 Page 4 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental RevenueFines and ForfeitsInvestment Income RentalOther FeesContributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Interest on Interfund Borrowing Capital Outlay AdministrationPublic WorksParks and RecreationDebt ServicePrincipalInterest Fiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers InTransfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Senior Park CIP Police E-911 Board Improvement Trails $- $- $- $- $- - - - - 22,546 - - - - - - 81,917 - 57,750 100,000 6,400 - - - - 1,507 821 473 42,590 297 - - - - - - - - 1,961,640 - - - 3,532 55,605 - 41,181 - 35 190,000 - 49,088 82,738 4,040 2,307,585 122,843 - - - - - 50,823 99,235 - - - - - - - - - - 4,076 - - - - - - - - - - - - - - - - 252,090 - - - 1,994,006 - - - - - - - - - - - - - - - - 50,823 99,235 4,076 1,994,006 252,090 (1,735) (16,497) (36) 313,579 (129,247) - - - 20,000 340,000 - - (1,350) - - - - (1,350) 20,000 340,000 (1,735) (16,497) (1,386) 333,579 210,753 47,706 90,598 17,758 1,408,924 43,782 $45,971 $74,101 $16,372 $1,742,503 $254,535 Capital Projects 135 Page 5 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental RevenueFines and ForfeitsInvestment Income RentalOther FeesContributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Interest on Interfund Borrowing Capital Outlay AdministrationPublic WorksParks and RecreationDebt ServicePrincipalInterest Fiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers InTransfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending CIP Economic Pavement Development Project Tree Mgmt Fund Fund HRA Replacement $- $- $1,936,046 $199,181 $- - - - - - 3,237,996 - - - - 500,000 - - - - - - - - - 114,141 105,792 106,907 6,694 623 - 75,858 - - - - - - - 123,750 - - - - - - 3,370 - - - 3,852,137 185,020 2,042,953 205,875 124,373 - 59,622 1,886,362 205,019 - - - - - - - - - - - - - - - - - - - - - - - - - - 2,563,234 - - - - - - - - 769 - 44,426 - - - - 3,370 - - - - - - - - 2,563,234 107,418 1,886,362 205,019 769 1,288,903 77,602 156,591 856 123,604 - - 1,005 - - - (1,468,071) - - - - (1,468,071) 1,005 - - 1,288,903 (1,390,469) 157,596 856 123,604 3,193,776 5,301,512 4,538,783 271,099 - $4,482,679 $3,911,043 $4,696,379 $271,955 $123,604 Capital Projects 136 Page 6 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental RevenueFines and ForfeitsInvestment Income RentalOther FeesContributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Interest on Interfund Borrowing Capital Outlay AdministrationPublic WorksParks and RecreationDebt ServicePrincipalInterest Fiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers InTransfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Eden Prairie Rd Shady Oak Connect to Homeowners Road Cable Flying Improvements Transportation South PEG Cloud Area $- $- $- $- $- - - - - 11,348 - - 99,398 - - 46,144 - - 2,150,618 - - - - - - 88,448 4,928 5,901 2,221 - - - - - - - - - - - - - - - - 75,000 - - - - 209,592 4,928 105,299 2,152,839 11,348 - - - - - - - - - - - - - - - - - - - - - - - - 714 - - 106,030 - - 307,945 - - 2,986,366 - - - - - - - - - - - - - - - - - - - - - 307,945 - 106,030 2,986,366 714 (98,353) 4,928 (731) (833,527) 10,634 176,790 - - 409,613 - (1,745,141) (176,790) - - - (1,568,351) (176,790) - 409,613 - (1,666,704) (171,862) (731) (423,914) 10,634 4,014,628 171,862 224,777 (916,086) (29,002) $2,347,924 $- $224,046 $(1,340,000) $(18,368) Capital Projects 137 Page 7 of 7 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2019 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental RevenueFines and ForfeitsInvestment Income RentalOther FeesContributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Interest on Interfund Borrowing Capital Outlay AdministrationPublic WorksParks and RecreationDebt ServicePrincipalInterest Fiscal Agent FeesTotal Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers InTransfers OutTotal Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Cemetery Total West 70th SingleTree Perpetual Nonmajor Street Lane Care Governmental Extension South Total Fund Funds $- $- $2,135,227 $- $4,670,403 160,732 - 194,626 - 667,109 - - 3,337,394 - 3,337,394 - - 2,936,429 -3,384,832 - - 6,400 - 6,400 7,507 4,970 493,820 8,296 575,566 - - 75,858 - 75,858 - - 2,085,390 4,540 2,120,265 - - 59,137 - 59,137 - - 309,586 - 314,783 168,239 4,970 11,633,867 12,836 15,211,747 - - 2,151,003 - 2,482,012 - - 150,058 - 150,058 - - - - 119,495 - - 4,076 - 140,649 - - 714 - 42,057 - - 106,030 - 106,030 - 731,467 6,841,102 - 6,841,102 - - 1,994,775 - 1,994,775 - - 44,426 - 3,379,426 - - 3,370 - 892,036 - - - - 10,838 - 731,467 11,295,554 - 16,158,478 168,239 (726,497) 338,313 12,836 (946,731) - 190,000 1,137,408 - 2,990,770 (388,417) - (3,779,769) (114,945) (3,928,663) (388,417) 190,000 (2,642,361) (114,945) (937,893) (220,178) (536,497) (2,304,048) (102,109) (1,884,624) 220,178 477,863 19,078,158 281,672 23,152,666 $- $(58,634) $16,774,110 $179,563 $21,268,042 Permanent FundCapital Projects 138 City of Eden Prairie, Minnesota Internal Service Funds Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Health & Benefits – This fund accounts for the activities pertaining to health, dental, life and disability insurance. This fund also accounts for the employer’s portion of pension, FICA and medicare contributions. Severance – This fund accounts for the payment of unused personal time off for governmental fund employees. Workers Compensation – This fund accounts for the costs associated with workers’ compensation. Revenues are primarily charges to other funds, interest earnings and insurance checks. Expenditures will consist of insurance premiums. Property Insurance – This fund accounts for the costs associated with the City’s property and casualty insurance program. Revenues are primarily charges to other funds and interest earnings. Expenditures will consist of insurance premiums. Facilities – This fund accounts for the costs associated with maintaining city owned buildings. Revenues are primarily charges to other funds and interest earnings. Fleet – These funds account for the costs associated with maintaining and purchasing vehicles and equipment for the City. Revenues are primarily charges to other funds and interest earnings. Information Technology – These funds account for the provision of information technology services including infrastructure and applications. Revenues are primarily charges to other funds and interest earnings. 139 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2019 Health &Workers PropertyBenefitsSeveranceCompensationInsurance ASSETS Current Assets Cash and Investments $1,091,121 $1,405,839 $305,672 $192,837 ReceivablesAccounts 8,444 - - - Interest 3,507 4,544 866 493 Due From Other Governments 9,605 - - - Inventory - - - - Prepaid Items 308,592 - 91,609 118,720 Total Current Assets 1,421,269 1,410,383 398,147 312,050 Noncurrent Assets: Capital Assets Property, Plant and Equipment - - - - Less Accumulated Depreciation - - - - Total Noncurrent Assets - - - - Total Assets 1,421,269 1,410,383 398,147 312,050 DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits 141,241 - 32 32 Total Deferred Outflows of Resources 141,241 - 32 32 Total Assets and Deferred Outflows of Resources $1,562,510 $1,410,383 $398,179 $312,082 LIABILITIES Current Liabilities:Accounts Payable $38,994 $- $- $- Salaries Payable - - 346 346 Due to Other Governments 218,100 - - - Unearned Revenue - - - - Current Portion of Total OPEB Liability 141,241 - 32 32 Current Portion of Compensated Absences - 1,061,496 - - Total Current Liabilities 398,335 1,061,496 378 378 Noncurrent Liabilities: Total OPEB Liability 2,375,858 - 535 536 Compensated Absences - 1,046,057 - - Total Noncurrent Liabilities 2,375,858 1,046,057 535 536 Total Liabilities 2,774,193 2,107,553 913 914 DEFERRED INFLOWS OF RESOURCES OPEB 72,840 - 17 17 Total Deferred Inflows of Resources 72,840 - 17 17 Total Liabilities and Deferred Inflows of Resources 2,847,033 2,107,553 930 931 NET POSITION Net Investment in Capital Assets - - - - Unrestricted (1,284,523) (697,170) 397,249 311,151 Total Net Position (1,284,523) (697,170) 397,249 311,151 Total Liabilities and Deferred Inflows of Resources $1,562,510 $1,410,383 $398,179 $312,082 and Net Position 140 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2019 ASSETS Current Assets Cash and Investments ReceivablesAccounts InterestDue From Other GovernmentsInventoryPrepaid ItemsTotal Current Assets Noncurrent Assets: Capital Assets Property, Plant and Equipment Less Accumulated Depreciation Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities:Accounts Payable Salaries Payable Due to Other Governments Unearned Revenue Current Portion of Total OPEB Liability Current Portion of Compensated Absences Total Current Liabilities Noncurrent Liabilities: Total OPEB Liability Compensated AbsencesTotal Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES OPEB Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities and Deferred Inflows of Resources and Net Position InformationFacilitiesFleetTechnology Total $2,620,653 $3,906,389 $1,047,950 $10,570,461 5,293 56,670 - 70,407 7,276 12,246 3,339 32,271 - - - 9,605 - 104,681 - 104,681 360 2,500 157,679 679,460 2,633,582 4,082,486 1,208,968 11,466,885 3,392,017 7,862,191 652,099 11,906,307 (1,013,400) (5,022,250) (354,383) (6,390,033) 2,378,617 2,839,941 297,716 5,516,274 5,012,199 6,922,427 1,506,684 16,983,159 1,714 1,951 548 145,518 1,714 1,951 548 145,518 $5,013,913 $6,924,378 $1,507,232 $17,128,677 $411,305 $128,138 $39,423 $617,860 23,289 11,120 14,764 49,865 - 1,537 247 219,884 58,398 - 3,000 61,398 1,714 1,951 548 145,518 - - - 1,061,496 494,706 142,746 57,982 2,156,021 28,838 32,812 9,207 2,447,786 - - - 1,046,057 28,838 32,812 9,207 3,493,843 523,544 175,558 67,189 5,649,864 884 1,006 282 75,046 884 1,006 282 75,046 524,428 176,564 67,471 5,724,910 2,378,617 2,839,941 297,716 5,516,274 2,110,868 3,907,873 1,142,045 5,887,493 4,489,485 6,747,814 1,439,761 11,403,767 $5,013,913 $6,924,378 $1,507,232 $17,128,677 141 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net Position For the Year Ended December 31, 2019 Health &Workers PropertyBenefitsSeveranceCompensationInsurance OPERATING REVENUE Charges for Services $5,929,341 $164,847 $679,511 $758,290 Rental - - - - Total Operating Revenues 5,929,341 164,847 679,511 758,290 OPERATING EXPENSE Personnel Services 5,714,318 293,064 40,705 40,705 Supplies Supplies - - 295 - Cleaning Supplies - - - - Motor Fuel - - - - Tires - - - - Repair and Maintenance Supplies - - - - Contractual Services Contractual Services 17,822 - 558,533 620,870 Software - - - - Janitorial Services - - - - Licenses, Permits, Taxes - - - - Repair and Maintenance - - - - Utilities - - - - Capital Under $25,000 - - - - Total Operating Expenses 5,732,140 293,064 599,533 661,575 Operating Income (Loss) Before Depreciation 197,201 (128,217) 79,978 96,715 Depreciation - - - - Operating Income (Loss) Before Nonoperating Revenue / Expense 197,201 (128,217) 79,978 96,715 NONOPERATING REVENUE (EXPENSE) Investment Income 31,674 40,740 7,845 4,520 Gain/(Loss) on Disposition of Capital Assets - - - - Miscellaneous 8,843 - 12,949 103 Total Nonoperating Revenues (Expenses)40,517 40,740 20,794 4,623 Income (Loss) Before Contributions and Transfers 237,718 (87,477) 100,772 101,338 Contributions - from Governmental Activities - - - - Change in Net Position 237,718 (87,477) 100,772 101,338 Net Position - Beginning (1,522,241) (609,693) 296,477 209,813 Net Position - Ending $(1,284,523) $(697,170) $397,249 $311,151 142 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net Position For the Year Ended December 31, 2019 OPERATING REVENUE Charges for Services Rental Total Operating Revenues OPERATING EXPENSE Personnel Services Supplies Supplies Cleaning Supplies Motor Fuel Tires Repair and Maintenance Supplies Contractual Services Contractual Services Software Janitorial Services Licenses, Permits, Taxes Repair and Maintenance Utilities Capital Under $25,000 Total Operating Expenses Operating Income (Loss) Before Depreciation Depreciation Operating Income (Loss) Before Nonoperating Revenue / Expense NONOPERATING REVENUE (EXPENSE) Investment Income Gain/(Loss) on Disposition of Capital Assets Miscellaneous Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers Contributions - from Governmental Activities Change in Net Position Net Position - Beginning Net Position - Ending InformationFacilitiesFleetTechnology Total $5,267,880 $2,627,543 $2,462,122 $17,889,534 958,884 - - 958,884 6,226,764 2,627,543 2,462,122 18,848,418 1,047,654 533,686 653,655 8,323,787 7,091 50,131 10,238 67,755 144,402 - - 144,402 10,062 382,201 - 392,263 - 79,168 - 79,168 256,489 236,782 - 493,271 1,503,066 13,927 153,883 2,868,101 - - 1,167,010 1,167,010 1,002,079 - - 1,002,079 198,624 738 - 199,362 - 306,740 - 306,740 1,385,082 2,520 154,828 1,542,430 286,435 83,001 270,637 640,073 5,840,984 1,688,894 2,410,251 17,226,441 385,780 938,649 51,871 1,621,977 100,714 973,306 110,952 1,184,972 285,066 (34,657) (59,081) 437,005 72,262 109,840 30,076 296,957 - 197,066 - 197,066 54,997 38,941 - 115,833 127,259 345,847 30,076 609,856 412,325 311,190 (29,005) 1,046,861 - 24,700 - 24,700 412,325 335,890 (29,005) 1,071,561 4,077,160 6,411,924 1,468,766 10,332,206 $4,489,485 $6,747,814 $1,439,761 $11,403,767 143 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2019 Health &Workers Property Benefits Severance Compensation Insurance CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $5,926,155 $164,847 $679,511 $758,290 Payments to Vendors (309,123) - (563,333) (618,013) Payments to Employees (5,652,746) (150,019) (41,291) (41,291) Other Receipts 8,843 - 12,949 103 Net Cash Provided (Used) By Operating Activities (26,871) 14,828 87,836 99,089 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 30,743 40,332 7,546 4,205 Net Cash Provided (Used) By Investing Activities 30,743 40,332 7,546 4,205 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition and Construction of Capital Assets - - - - Proceeds From Sale of Equipment - - - - Net Cash Provided (Used) By Capital and Related Financing Activities - - - - Net Increase (Decrease) in Cash and Cash Equivalents 3,872 55,160 95,382 103,294 Cash and Cash Equivalents, January 1 1,087,249 1,350,679 210,290 89,543 Cash and Cash Equivalents, December 31 $1,091,121 $1,405,839 $305,672 $192,837 144 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2019 CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers Payments to VendorsPayments to Employees Other ReceiptsNet Cash Provided (Used) By Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Investment Income Net Cash Provided (Used) By Investing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition and Construction of Capital AssetsProceeds From Sale of Equipment Net Cash Provided (Used) By Capital and Related Financing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31 Page 1 of 2 Information Facilities Fleet Technology Total $5,410,086 $2,625,702 $2,465,122 $18,029,713 (4,923,645) (1,183,532) (1,803,789) (9,401,435) (1,041,269) (530,713) (650,013) (8,107,342) 1,013,881 38,941 - 1,074,717 459,053 950,398 11,320 1,595,653 70,454 108,628 29,406 291,314 70,454 108,628 29,406 291,314 - (1,098,889) (55,555) (1,154,444) - 221,766 - 221,766 - (877,123) (55,555) (932,678) 529,507 181,903 (14,829) 954,289 2,091,146 3,724,486 1,062,779 9,616,172 $2,620,653 $3,906,389 $1,047,950 $10,570,461 145 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2019 Health &Workers PropertyBenefitsSeveranceCompensationInsurance RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss)$197,201 $(128,217) $79,978 $96,715 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation - - - - Miscellaneous 8,843 - 12,949 103 (Increase) Decrease in Assets:Accounts Receivable (3,186) - - - Due From Other Governments (9,552) - - - Inventory - - - - Prepaid Items (308,592) - (4,505) 2,857 Other Post Employment Benefits (34,247) - (8) (8) Increase (Decrease) in Liabilities:Accounts Payable (23,564) - - - Salaries Payable - - (600) (600) Unearned Revenue - - - - Due to Other Governments 50,407 - - - Other Post Employment Benefits 95,819 - 22 22 Compensated Absences - 143,045 - - Net Cash Provided (Used) by Operating Activities $(26,871) $14,828 $87,836 $99,089 Noncash Investing, Capital and Financing Activities: Contribution of Capital Asset to Governmental Funds $- $- $- $- 146 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2019 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: DepreciationMiscellaneous (Increase) Decrease in Assets:Accounts Receivable Due From Other GovernmentsInventory Prepaid ItemsOther Post Employment Benefits Increase (Decrease) in Liabilities:Accounts Payable Salaries PayableUnearned Revenue Due to Other GovernmentsOther Post Employment Benefits Compensated Absences Net Cash Provided (Used) by Operating Activities Noncash Investing, Capital and Financing Activities: Contribution of Capital Asset to Governmental Funds Page 2 of 2 InformationFacilitiesFleetTechnology Total $285,066 $(34,657) $(59,081) $437,005 100,714 973,306 110,952 1,184,972 54,997 38,941 - 115,833 84,403 (1,841) - 79,376 - - - (9,552) - (9,505) - (9,505) (12) (1,000) 990 (310,262) (415) (473) (134) (35,285) (130,303) (18,185) (46,542) (218,594) 5,636 2,123 3,405 9,964 57,803 - 3,000 60,803 - 366 (1,641) 49,132 1,164 1,323 371 98,721 - - - 143,045 $459,053 $950,398 $11,320 $1,595,653 $- $24,700 $- $24,700 147 This page is intentionally left blank 148 City of Eden Prairie, Minnesota Custodial Funds Custodial Funds Custodial funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments, or other funds. Escrow - This fund is used to account for evidence held by the Police Department. WAFTA – This fund accounts for the collection and remittance of expenses pertaining to the fire training facility owned by 11 member cities. MCES - This fund accounts for the collection and remittance of sewer availability charges to the Metropolitan Council Environmental Services. 494 Corridor Commission – This fund accounts for the collection and remittance of expenses pertaining to the policy work and employer and commuter outreach performed by staff of the I-494 Corridor Commission. The Commission is funded by member cities, a federal Congestion Mitigation & Air Quality grant, and a state grant. 149 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Fiduciary Net Position December 31, 2019 Escrow 494 Fund WAFTA MCES Corridor Custodial FundsTotal ASSETS Cash and Investments $10,934 $265,524 $124,250 $203,706 $604,414 Accounts Receivable - - - 2,129 2,129 Due from Other Governments - - - 51,570 51,570 Prepaid Expenses - - - 6,287 6,287 Total Assets 10,934 265,524 124,250 263,692 664,400 LIABILITIES Accounts Payable - - - 7,018 7,018 Due to Other Governments - - 124,250 - 124,250 Total Liabilities - - 124,250 7,018 131,268 NET POSITION Restricted For: Police Evidence Cash 10,934 - - - 10,934 Western Area Fire Training Costs - 265,524 - - 265,524 I-494 Corridor Commission Costs - - - 256,674 256,674 $10,934 265,524 - 256,674 533,132 150 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2019 Custodial 494 Funds Escrow WAFTA MCES Corridor Total ADDITIONS Grants $- $- $- $311,468 $311,468 Memberships - 22,000 - 118,018 140,018 Investments Earnings - 5,038 - 5,180 10,218 Building Permits - - 335,475 - 335,475 Customers Deposits 10,934 - - - 10,934 Other - - - 3,205 3,205 Total Additions 10,934 27,038 335,475 437,871 811,318 DEDUCTIONS Personnel Services - - - 324,204 324,204 Supplies - 165 - 39,316 39,481 Contractual Services - 1,337 335,475 177,076 513,888 Total Deductions - 1,502 335,475 540,596 877,573 Net Increase (Decrease) in Fiduciary Net Position 10,934 25,536 - (102,725)(66,255) Net Position - Beginning, as previously stated - - - - - Change of Accounting Principle - 239,988 - 359,399 599,387 Net Position - Beginning, as restated - 239,988 - 359,399 599,387 Net Position - Ending $10,934 $265,524 $- $256,674 $533,132 151 This page is intentionally left blank 152 STATISTICAL SECTION 153 City of Eden Prairie, Minnesota Statistical Section (Unaudited) This part of the City of Eden Prairie’s comprehensive annual financial report presents detailed information as a context for understanding this year’s financial statements, note disclosures, and supplementary information. This information has not been audited by the independent auditor. Contents Page Financial Trends ........................................................................................................................................................155-160 These tables contain trend information that may assist the reader in assessing the City’s current financial performance by placing it in historical perspective. Revenue Capacity ......................................................................................................................................................161-164 These tables contain information that may assist the reader in assessing the viability of the City’s most significant “own-source” revenue, the property tax. Debt Capacity ..............................................................................................................................................................165-168 These tables present information that may assist the reader in analyzing the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information ........................................................................................................169-170 These tables offer economic and demographic indicators that are commonly used for financial analysis and that can increase one’s understanding of the City’s present and ongoing financial status. Operating Information ............................................................................................................................................171-173 These tables contain service and infrastructure indicators that can increase one’s understanding of how the information in the City’s financial statements relates to the services the City provides and the activities it performs. Source: Unless otherwise noted, the information in these tables is derived from the comprehensive annual financial reports for the relevant year. 154 City of Eden Prairie, Minnesota Government-wide Net Position by Category (accrual basis of accounting) Last Ten Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets $169,874,219 $178,022,468 $182,115,707 $177,981,232 $181,975,764 $189,217,647 $191,675,648 $195,150,960 $198,061,704 $204,564,164 Restricted 8,882,954 9,190,791 7,324,699 6,175,774 13,773,554 23,112,719 26,405,621 23,186,863 28,343,449 20,531,807 Unrestricted 50,954,497 48,843,723 55,746,593 57,276,140 60,341,383 31,911,221 21,694,457 29,707,881 29,069,260 33,229,904 Governmental Activities Net Position 229,711,670 236,056,982 245,186,999 241,433,146 256,090,701 244,241,587 239,775,726 248,045,704 255,474,413 258,325,875 BUSINESS-TYPE ACTIVITIES Net Investment in Capital Assets 138,307,152 138,397,769 134,140,863 132,801,426 131,144,305 128,130,738 125,479,624 121,073,703 116,820,164 114,243,631 Unrestricted 5,224,848 9,452,826 12,357,974 15,634,317 14,438,525 14,792,266 16,155,406 19,142,578 22,590,071 25,296,848 Business-Type Activities Net Position 143,532,000 147,850,595 146,498,837 148,435,743 145,582,830 142,923,004 141,635,030 140,216,281 139,410,235 139,540,479 PRIMARY GOVERNMENT Net Investment in Capital Assets 308,181,371 316,420,237 316,256,570 310,782,658 313,120,069 317,348,385 317,155,272 316,224,663 314,881,868 318,807,795 Restricted 8,882,954 9,190,791 7,324,699 6,175,774 13,773,554 23,112,719 26,405,621 23,186,863 28,343,449 20,531,807 Unrestricted 56,179,345 58,296,549 68,104,567 72,910,457 74,759,133 46,703,487 37,849,863 48,850,459 51,659,331 58,526,752 Primary Government Net Position $373,243,670 $383,907,577 $391,685,836 $389,868,889 $401,652,756 $387,164,591 $381,410,756 $388,261,985 $394,884,648 $397,866,354 155 City of Eden Prairie, Minnesota Changes in Net Position-Total (accrual basis of accounting) Last Ten Years Source 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EXPENSES Governmental Activities $45,701,477 $45,294,566 $49,206,494 $58,843,210 $57,169,862 $65,402,641 $63,294,429 $60,402,652 $59,821,696 $67,623,543 Business-type Activities 26,739,072 27,530,501 29,553,823 29,692,124 29,820,423 27,924,045 30,170,309 28,922,085 30,324,121 30,033,843 Total Expenses 72,440,549 72,825,067 78,760,317 88,535,334 86,990,285 93,326,686 93,464,738 89,324,737 90,145,817 97,657,386 PROGRAM REVENUES Governmental Activities 13,032,144 14,786,027 20,610,978 16,622,065 33,865,654 31,911,922 18,955,697 19,086,961 23,707,803 26,795,160 Business-type Activities 23,654,183 25,863,662 29,336,671 32,870,365 28,335,144 27,330,069 29,392,647 28,144,288 30,391,136 29,543,322 Total Program Revenues 36,686,327 40,649,689 49,947,649 49,492,430 62,200,798 59,241,991 48,348,344 47,231,249 54,098,939 56,338,482 Net (Expense) Revenue (35,754,222) (32,175,378) (28,812,668) (39,042,904) (24,789,487) (34,084,695) (45,116,394) (42,093,488) (36,046,878) (41,318,904) GENERAL REVENUES AND TRANSFERS Governmental Activities 37,424,617 36,853,851 37,725,533 38,467,292 37,961,763 37,694,597 39,872,871 41,618,266 43,542,602 43,679,845 Business-type Activities (1,777,490) (1,230,687) (1,134,606) (1,241,335) (1,367,634) 336,534 (510,312) (640,952) (873,061) 620,765 Total General Revenues and Transfers 35,647,127 35,623,164 36,590,927 37,225,957 36,594,129 38,031,131 39,362,559 40,977,314 42,669,541 44,300,610 Change in Net Position $(107,095) $3,447,786 $7,778,259 $(1,816,947) $11,804,642 $3,946,436 $(5,753,835) $(1,116,174) $6,622,663 $2,981,706 156 City of Eden Prairie, Minnesota Changes in Net Position-Governmental Activities (accrual basis of accounting) Last Ten Years SOURCES 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EXPENSES General Government $9,183,334 $9,263,991 $- $- $ - $ - $ - $ - $ - $ - Administration - - 4,008,338 5,854,425 4,921,044 5,579,070 5,003,957 4,611,732 5,092,886 4,827,249 Community Development - - 6,251,288 5,678,694 5,368,762 7,730,338 5,692,215 6,222,326 4,942,029 4,771,490 Public Safety 17,985,648 17,538,536 - - - - - - - - Police - - 12,413,470 12,846,206 13,534,150 14,118,565 17,793,494 15,769,976 14,365,502 15,021,975 Fire - - 5,646,926 5,724,342 6,093,772 6,324,124 7,542,196 6,896,697 6,406,404 7,191,071 Public Works 7,522,749 7,665,875 8,226,283 16,288,862 13,321,459 17,652,163 11,035,229 10,616,604 10,098,667 19,518,141 Parks and Recreation 9,769,235 9,617,076 10,815,390 11,113,811 12,947,006 12,862,402 15,133,618 15,274,479 18,008,795 15,458,406 Interest on Long Term Debt 1,240,511 1,209,088 1,844,799 1,336,870 983,669 1,135,979 1,093,720 1,010,838 907,413 835,211 Total Expenses 45,701,477 45,294,566 49,206,494 58,843,210 57,169,862 65,402,641 63,294,429 60,402,652 59,821,696 67,623,543 PROGRAM REVENUES Charges for ServicesGeneral Government 958,005 966,931 - - - - - - - - Administration - - 1,695,035 1,176,919 1,314,271 1,132,606 1,442,068 1,173,177 1,079,151 1,052,388 Community Development - - 154,858 122,263 73,929 93,195 152,708 127,248 161,918 180,443 Public Safety 3,135,082 3,264,191 - - - - - - - - Police - - 1,338,079 1,223,836 1,130,020 1,063,129 1,131,502 1,039,936 1,115,447 1,103,269 Fire - - 3,450,431 4,236,114 3,502,952 2,571,830 2,315,725 2,240,351 3,505,901 3,580,095 Public Works 230,390 322,561 518,365 497,720 411,144 975,701 330,709 218,292 274,679 1,070,746 Parks and Recreation 4,285,057 4,327,323 4,759,919 5,005,917 5,187,195 5,229,060 5,513,331 6,091,247 5,854,094 6,004,835 Operating Grants and Contributions 1,320,014 1,435,321 1,567,265 1,459,859 1,741,945 1,818,333 1,614,263 1,707,453 2,457,482 2,461,663 Capital Grants and Contributions 3,103,596 4,469,700 7,127,026 2,899,437 20,504,198 19,028,068 6,455,391 6,489,257 9,259,131 11,341,721 Total Program Revenues 13,032,144 14,786,027 20,610,978 16,622,065 33,865,654 31,911,922 18,955,697 19,086,961 23,707,803 26,795,160 Net (Expense) Revenue (32,669,333) (30,508,539) (28,595,516) (42,221,145) (23,304,208) (33,490,719) (44,338,732) (41,315,691) (36,113,893) (40,828,383) GENERAL REVENUES AND TRANSFERS TaxesProperty Taxes 31,527,570 31,310,140 32,144,443 32,674,010 32,781,740 33,708,909 34,217,549 35,405,930 37,338,583 38,203,969 Tax Increment 3,450,291 3,139,080 3,353,556 3,535,459 3,070,936 3,249,355 3,357,247 3,570,703 2,320,447 1,936,046 Gain (Loss) on Sale of Capital Assets - 121,916 33,848 - - - - - - - Grants and Contributions Not Restricted to Specific Programs 229,510 752,907 836,646 862,288 483,914 741,828 1,268,257 1,545,745 1,644,788 1,718,391 Investment Income 427,377 259,808 186,676 137,890 210,373 272,989 418,849 334,305 988,382 1,747,241 Transfers 1,789,869 1,270,000 1,170,364 1,257,645 1,414,800 (278,484) 610,969 761,583 1,250,402 74,198 Total General Revenues and Transfers 37,424,617 36,853,851 37,725,533 38,467,292 37,961,763 37,694,597 39,872,871 41,618,266 43,542,602 43,679,845 Change in Net Position $4,755,284 $6,345,312 $9,130,017 $(3,753,853) $14,657,555 $4,203,878 $(4,465,861) $302,575 $7,428,709 $2,851,462 157 City of Eden Prairie, Minnesota Changes in Net position-Business-type Activities (accrual basis of accounting) Last Ten Years SOURCE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EXPENSES Water / Sewer $14,035,916 $ - $ - $ - $ - $ - $ - $ - $- $- Water - 8,162,292 9,570,579 9,564,793 9,856,001 8,905,768 10,526,151 9,686,669 10,460,599 9,708,148 Wastewater - 6,671,324 6,685,442 6,532,297 6,403,264 6,565,966 7,407,149 6,913,276 7,469,070 7,678,652 Stormwater 1,983,337 1,915,249 2,051,178 2,420,535 2,545,818 2,082,594 1,793,588 2,437,573 2,351,367 2,413,725 Liquor 10,719,819 10,781,636 11,246,624 11,174,499 11,015,340 10,369,717 10,443,421 9,884,567 10,043,085 10,233,318 Total Expenses 26,739,072 27,530,501 29,553,823 29,692,124 29,820,423 27,924,045 30,170,309 28,922,085 30,324,121 30,033,843 PROGRAM REVENUES Charges for Services Water / Sewer 11,103,035 - - - - - - - - - Water - 7,743,061 9,920,853 9,659,385 7,315,328 7,162,740 7,675,337 7,846,540 8,422,155 7,699,582 Wastewater - 4,926,624 5,654,186 6,265,514 5,566,951 5,661,990 5,789,584 5,863,517 6,356,014 6,726,548 Stormwater 831,731 1,054,077 1,327,159 1,499,405 1,656,817 1,933,572 2,095,629 2,400,254 2,786,754 3,125,251 Liquor 11,687,919 11,724,900 12,381,069 12,404,920 12,216,404 11,312,822 10,747,887 10,501,449 10,848,725 10,977,643 Operating Grants and Contributions 31,498 - - - 131,600 133,195 155,041 238,392 20,665 69,429 Capital Grants and Contributions - 415,000 53,404 3,041,141 1,448,044 1,125,750 2,929,169 1,294,136 1,956,823 944,869 Total Program Revenues 23,654,183 25,863,662 29,336,671 32,870,365 28,335,144 27,330,069 29,392,647 28,144,288 30,391,136 29,543,322 Net (Expense) Revenue (3,084,889) (1,666,839) (217,152) 3,178,241 (1,485,279) (593,976) (777,662) (777,797) 67,015 (490,521) GENERAL REVENUES AND TRANSFERS Grants and Contributions Not Restricted - 4,016 - - - - - - - - to Specific ProgramsInvestment Income 12,379 35,297 35,758 16,310 47,166 58,050 100,657 120,631 377,341 694,963 Transfers (1,789,869) (1,270,000) (1,170,364) (1,257,645) (1,414,800) 278,484 (610,969) (761,583) (1,250,402) (74,198) Total General Revenues and Transfers (1,777,490) (1,230,687) (1,134,606) (1,241,335) (1,367,634) 336,534 (510,312) (640,952) (873,061) 620,765 Change in Net Position $(4,862,379) $(2,897,526) $(1,351,758) $1,936,906 $(2,852,913) $(257,442) $(1,287,974) $(1,418,749) $(806,046) $130,244 Prior to 2011, Water and Sewer were combined. 158 City of Eden Prairie, Minnesota Fund Balances-Governmental Funds Last Ten Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 GENERAL FUND Reserved $66,238 $- $- $ - $ - $ - $ - $ - $ - $ - Unreserved 20,877,251 - - - - - - - - - Nonspendable - 18,266 52,190 24,702 39,844 22,947 35,792 30,037 103,845 69,611 Restricted - - - - - - 286,942 - - 11,148 Unassigned - 21,162,123 21,069,050 21,509,541 22,292,187 22,859,810 23,171,318 22,592,160 24,438,689 25,354,724 Subtotal General Fund 20,943,489 21,180,389 21,121,240 21,534,243 22,332,031 22,882,757 23,494,052 22,622,197 24,542,534 25,435,483 General Fund % Change 1.7% 1.1% (0.3%)2.0%3.7% 2.5% 2.7% (3.7%)8.5%3.6% ALL OTHER GOV'T FUNDS Reserved 118,186 - - - - - - - - - Unreserved Special Revenue 548,831 - - - - - - - - - Debt Service 4,383,750 - - - - - - - - - Capital Projects 19,775,005 - - - - - - - - - Permanent 140,584 - - - - - - - - - Nonspendable - 812,151 537,530 538,620 542,619 1,938,628 250,970 250,290 227,197 221,019 Restricted - 15,261,699 22,281,089 20,876,780 23,065,276 10,891,614 11,676,546 7,680,713 11,577,849 13,330,982 Assigned - 17,951,086 34,326,050 28,275,391 28,510,594 22,935,181 19,799,434 25,270,027 25,215,825 24,996,835 Unassigned - (3,687,585) (4,308,281) (3,859,192) (6,295,915) (6,572,969) (5,110,657) (2,587,713) (4,512,314) (2,218,785) Subtotal All Other Govt' Funds 24,966,356 30,337,351 52,836,388 45,831,599 45,822,574 29,192,454 26,616,293 30,613,317 32,508,557 36,330,051 TOTAL GOVT' FUNDS Reserved 184,424 - - - - - - - - - Unreserved 45,725,421 - - - - - - - - - Nonspendable - 830,417 589,720 563,322 582,463 1,961,575 286,762 280,327 331,042 290,630 Restricted - 15,261,699 22,281,089 20,876,780 23,065,276 10,891,614 11,963,488 7,680,713 11,577,849 13,342,130 Assigned - 17,951,086 34,326,050 28,275,391 28,510,594 22,935,181 19,799,434 25,270,027 25,215,825 24,996,835 Unassigned - 17,474,538 16,760,769 17,650,349 15,996,272 16,286,841 18,060,661 20,004,447 19,926,375 23,135,939 Total Govt' Funds $45,909,845 $51,517,740 $73,957,628 $67,365,842 $68,154,605 $52,075,211 $50,110,345 $53,235,514 $57,051,091 $61,765,534 All Govt' Funds % Change 1.1% 12.2% 43.6% (8.9%)1.2% (23.6%) (3.8%)6.2%7.2%8.3% GASB 54 was implemented in 2011 159 City of Eden Prairie, Minnesota Changes in Fund Balances-Governmental Funds (modified accrual basis of accounting) Last Ten Years SOURCE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 REVENUES Taxes and Special Assessments $36,494,481 $35,876,027 $37,518,214 $38,119,497 $37,189,846 $44,259,324 $41,169,891 $42,262,252 $42,826,126 $42,964,367 Licenses and Permits 3,119,449 3,363,293 5,631,529 7,956,114 7,084,975 6,686,477 6,017,523 5,810,945 7,938,046 9,054,415 Intergovernmental Revenue 2,437,441 5,215,943 7,368,558 1,886,954 8,582,993 6,299,840 2,362,417 7,787,877 2,980,678 14,691,473 Charges for Services 3,919,848 4,202,734 4,394,544 4,532,269 4,841,857 4,864,818 5,325,932 5,744,494 5,976,951 6,132,338 Fines and Forfeits 496,449 557,512 603,126 420,552 406,210 344,384 346,823 347,285 416,028 370,944 Investment Income 406,281 224,379 195,657 140,303 216,895 276,176 417,997 310,433 887,536 1,523,825 Miscellaneous Revenue 1,609,244 1,488,991 2,469,125 2,265,545 1,647,534 7,098,463 3,249,117 2,835,760 4,853,894 4,684,221 Total Revenues 48,483,193 50,928,879 $58,180,753 55,321,234 59,970,310 69,829,482 58,889,700 65,099,046 65,879,259 79,421,583 EXPENDITURES General Government 8,726,894 8,768,528 - - - - - - - - Administration - - 3,634,743 3,634,004 3,946,531 3,809,732 4,280,665 4,036,821 4,467,514 4,455,624 Community Development - - 6,228,446 5,661,300 5,224,034 7,666,282 5,536,030 6,102,434 5,143,042 4,762,403 Public Safety 16,789,050 16,822,991 - - - - - - - - Police - - 12,362,179 12,696,678 13,079,303 13,704,796 13,917,677 14,183,797 14,672,312 15,354,150 Fire - - 5,190,539 5,300,536 5,664,111 5,754,747 5,699,308 6,145,202 6,058,619 5,854,829 Public Works 5,277,652 5,278,935 5,448,793 5,685,295 5,915,849 5,869,727 5,929,171 6,194,054 5,997,312 6,010,535 Parks and Recreation 8,874,758 8,790,806 9,591,618 9,949,401 10,255,620 10,571,858 11,008,845 11,309,009 12,176,110 12,629,951 Capital Outlay 5,919,859 8,696,679 8,558,743 13,946,660 21,000,674 31,265,363 15,133,476 8,779,760 9,816,539 24,076,873 Miscellaneous 42,967 17,256 29,641 7,996 25,547 39,283 49,954 40,019 66,154 65,245 Debt Service Principal 3,910,749 4,077,751 4,415,603 3,182,019 3,178,107 3,974,224 3,415,369 5,657,828 3,869,824 3,436,793 Interest 1,361,443 1,250,401 1,194,117 1,480,194 1,127,862 1,304,947 1,148,544 1,068,403 975,631 895,435 Other 44,075 96,169 249,671 8,937 144,530 22,517 66,043 23,500 16,848 10,838 Total Expenditures 50,947,447 53,799,516 56,904,093 61,553,020 69,562,168 83,983,476 66,185,082 63,540,827 63,259,905 77,552,676 Excess of Revenues Over (Under) Expenditures (2,464,254) (2,870,637) 1,276,660 (6,231,786) (9,591,858) (14,153,994) (7,295,382) 1,558,219 2,619,354 1,868,907 Other Financing Sources (Uses)2,967,231 8,478,532 21,163,228 (360,000) 10,380,621 (1,925,400) 5,330,516 1,566,950 1,196,223 2,845,536 Net Change in Fund Balance $502,977 $5,607,895 $22,439,888 $(6,591,786) $788,763 $(16,079,394) $(1,964,866) $3,125,169 $3,815,577 $4,714,443 Debt Service as a % of Noncapital Expenditures 11.1% 11.5% 11.0%8.0%7.5%7.9%8.1% 11.4%8.0%6.4% Prior to 2012 General Government included Administration and Community Development; Public Safety included Police and Fire. 160 City of Eden Prairie, Minnesota Assessed/Tax Capacity Value and Estimated Market Value of Property Last Ten Years Tax Tax Capacity Less: Less: Total Total Estimated Annual Payable Personal Commercial Farm &Before Fiscal Tax Assessed Direct Market % Dec. 31 Property Residential Apartments & Industrial Other Deductions Disparities Increment Value Tax Rate Value Change 2010 $1,250,594 $72,344,688 $5,912,957 $40,911,206 $63,679 $120,483,124 $16,806,832 $3,274,193 $100,402,099 28.742 $9,577,402,500 (4.4%) 2011 1,329,101 67,232,552 5,459,256 37,490,576 59,884 111,571,369 16,432,584 2,863,585 92,275,200 31.239 8,899,287,500 (7.1%)2012 1,358,537 62,647,985 5,522,804 36,820,370 62,140 106,411,836 15,040,117 2,860,791 88,510,928 33.250 8,647,405,200 (2.8%) 2013 1,480,936 59,466,380 5,959,818 36,840,974 51,531 103,799,639 14,637,037 2,990,202 86,172,400 34.617 8,483,358,400 (1.9%) 2014 1,536,795 59,699,056 6,723,391 37,928,219 75,620 105,963,081 14,732,733 3,137,785 88,092,563 34.709 8,627,122,700 1.7% 2015 1,581,718 63,907,631 7,045,373 38,765,135 49,597 111,349,454 15,719,259 2,933,721 92,696,474 33.954 9,078,339,200 5.2%2016 1,659,596 68,205,510 7,667,144 40,928,173 45,052 118,505,475 15,104,618 3,126,571 100,274,286 32.327 9,633,243,700 6.1% 2017 1,778,971 69,180,068 8,887,941 41,710,414 44,200 121,601,594 16,281,768 3,209,405 102,110,421 32.667 9,872,802,500 2.5% 2018 1,317,656 72,149,265 9,758,671 41,957,995 43,813 125,227,400 16,415,817 2,208,824 106,602,759 32.526 10,209,614,900 3.4%2019 1,995,250 75,815,471 10,394,693 42,523,027 44,602 130,773,043 16,343,594 1,869,603 112,559,846 31.690 10,663,264,100 4.4% 2010 1.0% 60.0%4.9% 34.0% 0.1%16.7% 3.3% 2011 1.2% 60.3%4.9% 33.6% 0.1%17.8% 3.1% 2012 1.3% 58.9%5.2% 34.6% 0.1%17.0% 3.2% 2013 1.4% 57.3%5.7%35.5% 0.0%17.0%3.5% 2014 1.5% 56.3%6.3% 35.8% 0.1%16.7% 3.6%2015 1.4% 57.4%6.3% 34.8% 0.0%17.0% 3.2% 2016 1.4% 57.6%6.5% 34.5% 0.0%15.1% 3.1% 2017 1.5% 56.9%7.3% 34.3% 0.0%15.9% 3.1%2018 1.1% 57.6%7.8% 33.5% 0.0%15.4% 2.1% 2019 1.5% 58.0%7.9% 32.5% 0.0%14.5% 1.7% Source: City Assessing Department and Hennepin County Percentages Tax Capacity 161 City of Eden Prairie, Minnesota Direct and Overlapping Property Tax Rate Last Ten Years Year Total School School School Watershed Watershed Watershed Ended City HRA City Hennepin Special District District District District District District Dec. 31 Rate Rate Rate County Districts (1)#270 #272 #276 #1 #2 #4 2010 28.553 0.189 28.742 42.640 8.138 23.050 25.959 18.657 1.293 0.520 1.279 2011 31.034 0.205 31.239 45.840 9.172 26.456 28.420 21.274 1.317 0.264 1.352 2012 33.036 0.214 33.250 48.231 9.523 29.270 29.292 23.015 1.388 0.445 1.387 2013 34.397 0.220 34.617 49.461 10.089 29.730 29.067 24.487 1.394 0.634 1.561 2014 34.493 0.216 34.709 49.959 10.561 32.358 27.817 24.374 1.490 0.759 1.880 2015 33.749 0.205 33.954 46.398 9.785 30.340 22.030 25.093 1.315 0.686 1.855 2016 32.137 0.190 32.327 45.356 9.530 28.514 20.948 22.887 1.233 0.598 1.745 2017 32.480 0.187 32.667 44.087 9.319 25.611 21.865 22.770 1.257 0.718 1.992 2018 32.348 0.178 32.526 42.808 8.973 29.035 20.525 23.133 1.204 0.659 2.269 2019 31.521 0.169 31.690 41.861 8.550 27.022 20.756 21.209 1.164 0.527 2.204 Year City School School School Ended Direct District District District Dec. 31 Rate #270 #272 #276 2010 0.0173 0.139 0.157 0.202 2011 0.0187 0.148 0.162 0.226 2012 0.0155 0.160 0.158 0.225 2013 0.0146 0.162 0.165 0.246 2014 0.0122 0.197 0.167 0.270 2015 0.0100 0.179 0.244 0.264 2016 0.0091 0.187 0.231 0.301 2017 0.0089 0.180 0.220 0.300 2018 0.0086 0.150 0.229 0.303 2019 0.0080 0.147 0.222 0.340 (1) Special Districts include Metropolitan Council, Regional Transit Board, Metropolitan Mosquito Control, County Park Museum, & Hennepin Suburban Parks Market Value Rates Overlapping Rates Tax Capacity Rates Direct Rates Overlapping Rates 162 City of Eden Prairie, Minnesota Principal Property Taxpayers For the Year Ended December 31, 2019 and 2010 Percentage Percentage Tax of Total Tax of Total Taxpayer Capacity Tax Capacity Taxpayer Capacity Tax Capacity United Healthcare Serv Inc. (United Healthcare)$3,092,230 2.4%Eden Prairie Mall, LLC $2,399,250 2.0% CAPREF Eden Prairie, LLC (Eden Prairie Mall (part of))1,859,250 1.4%ADC Telecommunications, Inc.959,250 0.8% FPACP3 Eden LLC (Arrive Eden Prairie Apts.)1,103,138 0.8%Geneva Office Exchange LLC 719,810 0.6% REEP-MF Fountain Place LLC (Fountain Place Apts.)1,061,289 0.8%Lifetouch, Inc.699,250 0.6% DCHR Acquisition LLC (CH Robinson Campus)1,036,360 0.8%Liberty Property LTD Partnership 639,250 0.5% AGNL Health LLC (Optium Campus)898,500 0.7%DCX Flying Cloud Drive DST 519,910 0.4% FPA/WC Parkway LLC (Renew Eden Prairie)760,600 0.6%Flying Cloud Office Inc.499,250 0.4% Kroll Ontrack Campus (WPT Lsnd 2 LP)659,250 0.5%United Healthcare Serv. Inc.483,530 0.4% EP Senior Housing LLC (Summit Place Senior Campus)644,100 0.5%EP-MN LLC 472,390 0.4% Lifetouch Inc. (Lifetouch)642,382 0.5%IRET-MR9, LLC 471,110 0.4% Total Principal Taxpayers 11,757,099 9.0%7,863,000 6.5% All Other Taxpayers 119,015,944 91.0%112,620,124 93.5% Total $130,773,043 100.0%$120,483,124 100.0% Source: City of Eden Prairie Assessing Department 2019 2010 163 City of Eden Prairie, Minnesota Property Tax Levies and Collections Last Ten Years Collected Within the Year Current Year Levy Collections Total Collections to Date Ended Taxes % of in Subsequent % of Dec. 31 Levied Amount Levy Years Amount Levy 2010 $31,719,631 $31,299,275 98.67%$(76,994) $31,222,281 98.43% 2011 31,719,631 31,355,647 98.85% (12,043) 31,343,604 98.81% 2012 32,458,990 32,193,272 99.18% (61,296) 32,131,976 98.99% 2013 32,749,320 32,519,542 99.30% (104,201) 32,415,341 98.98% 2014 33,220,111 32,881,280 98.98% (114,233) 32,767,047 98.64% 2015 33,992,311 33,675,337 99.07% (159,184) 33,516,153 98.60% 2016 34,860,874 34,512,035 99.00% (109,816) 34,402,219 98.68% 2017 35,911,841 35,480,742 98.80% (72,703) 35,408,039 98.60% 2018 37,349,820 37,319,709 99.92% (56,099) 37,263,610 99.77% 2019 38,478,724 38,167,003 99.19%- 38,167,003 99.19% Source: Hennepin County 164 City of Eden Prairie, Minnesota Legal Debt Margin Last Ten Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Estimated Market Value $9,577,402,500 $8,899,287,500 $8,647,405,200 $8,483,358,400 $8,627,122,700 $9,078,339,200 $9,633,243,700 $9,872,802,500 $10,209,614,900 $10,663,264,100 Legal Debt Margin: Debt Limit: 3% of Market Value 287,322,075 266,978,625 259,422,156 254,500,752 258,813,681 272,350,176 288,997,311 296,184,075 306,288,447 319,897,923 Amount of Debt Applicable to Debt Limit:General Obligation Bonds 23,222,670 25,866,940 31,874,239 29,464,744 17,906,759 13,499,232 12,036,705 10,648,354 9,211,190 8,191,241 Tax Abatement Bonds - - - - 17,598,269 17,575,537 17,552,806 17,180,074 16,697,342 16,229,610 Deductions: Amt Available for Repayment of Bonds (1)4,819,457 6,013,879 4,207,601 2,650,363 1,715,750 2,032,109 2,303,895 2,336,132 2,296,320 2,682,004 Total Debt Applicable to Limit 18,403,213 19,853,061 27,666,638 26,814,381 33,789,278 29,042,660 27,285,616 25,492,296 23,612,212 21,738,847 Legal Debt Margin $268,918,862 $247,125,564 $231,755,518 $227,686,371 $225,024,403 $243,307,516 $261,711,695 $270,691,779 $282,676,235 $298,159,076 As a % of Debt Limit 93.6%92.6%89.3%89.5%86.9%89.3%90.6%91.4%92.3%93.2% 1 - Amt Available for Repayment of Bonds only includes "Restricted Debt" of General Obligation and Tax Abatement Bonds 165 City of Eden Prairie, Minnesota Ratios of Outstanding Debt by Type Last Ten Years Business-Type Activities Special Year General Tax Total General Lease Assessments Total Percentage Ended Obligation Abatement Bonded Revenue Improvement Capital Govt'Revenue of Personal Per Dec. 31 Bonds Bonds Debt Bonds Bonds Lease Bonds Bonds Total Income (1)Capita (2) 2010 $23,222,670 $- $23,222,670 $3,815,884 $6,981,020 $42,751 $34,062,325 $ - $34,062,325 *543 2011 25,866,940 - 25,866,940 2,686,606 8,143,367 - 36,696,913 4,271,215 40,968,128 *670 2012 31,874,239 - 31,874,239 1,425,000 18,137,531 174,719 51,611,489 3,829,969 55,441,458 *894 2013 29,464,744 - 29,464,744 1,360,000 15,658,107 132,700 46,615,551 3,383,723 49,999,274 *806 2014 17,906,759 17,598,269 35,505,028 1,290,000 14,834,596 89,593 51,719,217 2,927,476 54,646,693 *871 2015 13,499,232 17,575,537 31,074,769 1,220,000 12,289,647 45,369 44,629,785 2,466,230 47,096,015 *752 2016 12,036,705 17,552,806 29,589,511 1,145,000 12,799,455 286,942 43,820,908 3,631,427 47,452,335 *751 2017 10,648,354 17,180,074 27,828,428 - 10,021,959 231,734 38,082,121 3,143,967 41,226,088 *653 2018 9,211,190 16,697,342 25,908,532 - 8,054,154 175,457 34,138,143 2,511,507 36,649,650 *575 2019 8,191,241 16,229,610 24,420,851 - 6,101,720 118,090 30,640,661 6,960,748 37,601,409 *593 (1) See Demographic and Economic Statistics for personal income (2) See Demographic and Economic Statistics for population * Information is not available Governmental Activities 166 City of Eden Prairie, Minnesota Ratios of General Bonded Debt Outstanding Last Ten Years Total Net Ratio of Net Year General Tax General Less Amounts General Bonded Debt Ended Obligation Abatement Bonded Available in Debt Bonded to Estimated Per Dec. 31 Debt (1)Bonds Debt Service Fund Debt Market Value (2) Capita (3) 2010 $23,222,670 $- $23,222,670 $4,819,457 $18,403,213 0.19% 294 2011 25,866,940 - 25,866,940 6,013,879 19,853,061 0.22% 325 2012 31,874,239 - 31,874,239 4,207,601 27,666,638 0.32% 446 2013 29,464,744 - 29,464,744 2,650,363 26,814,381 0.32% 432 2014 17,906,759 17,598,269 35,505,028 1,715,750 33,789,278 0.39% 539 2015 13,499,232 17,575,537 31,074,769 2,032,109 29,042,660 0.32% 464 2016 12,036,705 17,552,806 29,589,511 2,303,895 27,285,616 0.28% 432 2017 10,648,354 17,180,074 27,828,428 2,336,132 25,492,296 0.26% 404 2018 9,211,190 16,697,342 25,908,532 2,296,320 23,612,212 0.23% 371 2019 8,191,241 16,229,610 24,420,851 2,682,004 21,738,847 0.20% 343 (1) Amount Does not Include Special Assessment Improvement or Revenue Bonds. (2) See "Taxable Assessed Value and Estimated Actual Value of Property" for Market Value (3) See Demographic and Economic Statistics for Population 167 City of Eden Prairie, Minnesota Computation of Direct and Overlapping Bonded Debt December 31, 2019 Percent of Debt Net Debt Debt Applicable Applicable Governmental Unit Outstanding to City (1)to City Direct Debt: City of Eden Prairie $24,420,851 100.00%$24,420,851 Overlapping Debt: Hopkins ISD 270 $164,359,000 4.84%$7,954,976 Eden Prairie ISD 272 92,448,017 97.68%90,303,223 Minnetonka ISD 276 107,952,509 2.55%2,752,789 Hennepin County 983,232,996 6.00%58,993,980 Henn Suburban Park District 39,123,902 8.47%3,313,794 Henn Regional RR Authority 91,599,372 6.00%5,495,962 Metropolitan Council 142,583,705 3.05%4,348,803 Total Overlapping Debt 1,621,299,501 173,163,527 Total Direct and Overlapping Debt $1,645,720,352 $197,584,378 Notes: 1- The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the City's boundaries and dividing it by the county's total taxable assessed value. 168 City of Eden Prairie, Minnesota Demographic and Economic Statistics Last Ten Years Household Per Median Capita Median School Unemployment Year Population (1)Income Income Age Enrollment Rate 2010 62,683 85,509 *37.2 9,596 6.1% 2011 61,151 ***9,487 5.2% 2012 62,004 ***9,162 4.6% 2013 62,004 ***9,046 4.0% 2014 62,729 ***9,011 2.4% 2015 62,593 ***8,941 2.3% 2016 63,187 ***8,844 2.9% 2017 63,163 ***8,835 2.4% 2018 63,726 ***8,780 2.6% 2019 63,456 ***8,861 2.2% Sources: City of Eden Prairie Planning Department Minnesota Department of Employment and Economic Development Minnesota Local Area Unemployment Statistics File Minnesota Workforce Center Eden Prairie School District 272 - Enrollment History Website * Data is not available 1) Using Met Council numbers Governmental Activities 169 City of Eden Prairie, Minnesota Principal Employers For the Year Ended December 31, 2019 and 2010 Percentage Percentage of Total of Total Employer Employees City Employment Employer Employees City Employment Optum, Inc.3,312 5.3%I.S.D No. 272 (Eden Prairie)1,700 3.1% Eden Prairie Mall 2,310 3.7%Starkey Labs 1,500 2.7% C.H. Robinson Worldwide 2,200 3.5%Super Valu Stores Inc.1,500 2.7% Starkey Labs 2,000 3.2%C.H. Robinson Worldwide 1,348 2.5% Emerson Process Management 1,500 2.4% Ingenix 1,000 1.8% I.S.D No. 272 (Eden Prairie)1,477 2.4%Deli Express 855 1.6% Element Fleet Management 1,200 1.9%Kroll On-Track 808 1.5% Super Valu Stores Inc.1,100 1.8%MTS Systems Corp.700 1.3% MTS Systems Corporation 1,000 1.6%GE Capital Fleet Services 673 1.2% Eaton Corp.1,000 1.6%Digital River 662 1.2% Total Principal Employer 17,099 27.3%10,746 19.5% Other Employers 45,507 72.7%44,254 80.5% Total Employers 62,606 100.0%55,000 100.0% Source: Official Bonds Statement for G.O. Water Revenue Bonds, Series 2019A 2019 2010 170 City of Eden Prairie, Minnesota Employees by Function Last Ten Years Source: Human Resource department 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Administration Office of City Manager 2 2 2 2 2 2 2 2 2 2 City Clerk 1 1 1 1 1 1 1 1 1 1 Human Resources 9.8 9.3 8.75 8.8 9.7 9.7 9.8 9.8 9.8 9.8 Communications 3 3 3 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Finance 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 Liquor Stores 8 8 8 9 9 9 9 9 9 9 Information Technology 7.5 7.5 7 7 7 7 6 6 6 6 Facilities 8.5 8.5 8.5 8.5 9.88 9.88 9.88 10 10 10 Community Development Administration 0.9 1 1.5 2 2 2 2 2 2 2 Assessing 7 7 7 7 7 7 7 7 7 7 Planning 4.5 4.5 4.5 4.6 4.6 4.7 4.7 4.7 4.7 4.7 Economic Development 1 1 1 1 1 1 1 1 1 1 Housing & Community Services 2 2 2 2 1.75 1.75 1.75 1.75 1.75 2 Parks and Recreation Administration 2 2 2 2 2 2 2 2 2 2 Park Maintenance 20 20 20 20 20 20 20 20 20 20 Recreation Services 7.6 7.6 7.6 7.6 7.6 7.6 7.6 7.6 7.6 7.6 Community Center 5.5 5.5 5.5 5.5 5.5 5.5 6.5 6.5 6.5 6.5 Police Administration 26.35 26.35 25.1 25 25 25 25 25 25 24Officers65 65 66 66 66 66 67 68 68 69 Fire Administration 8.8 9 9 9 9 9 9 9 9 9 Building Inspections 9 9 9 9 9 9 9 9 9 9 Public Works Engineering 8.3 8.3 8.3 8.3 8.3 9.3 10.3 10.3 7.5 7.5 Street Maintenance 15 15 15 15 14.5 14.5 14 14 14 15 Utilities 33.7 34.7 34.7 34.7 34.7 34.7 35.7 35.7 39.5 39.5 Fleet Services 6 6 6 6 6.5 5.5 5 5 5 5 Grand Total 267.95 268.75 267.95 270 272.03 272.13 274.23 275.35 276.35 277.6 Source: Human Resource department 171 City of Eden Prairie, Minnesota Operating Indicators Last Ten Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Government Bond Rating - Moody's Investor Service Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Bond Rating - Standard & Poors n/a n/a n/a n/a AAA AAA AAA AAA AAA AAA Housing and Human ServicesNumber of Residents Served 3,100 3,000 3,300 3,300 3,500 3,500 3,500 3,750 3,975 5,700 Assessing: Number of Appraisals Completed 5,517 4,827 4,871 5,002 5,291 5,320 5,066 5,061 4,908 4,912 Parks and Recreation Avg Monthly Community Center Memberships 2,100 2,300 2,573 n/a n/a n/a 2,511 2,688 2,608 2,486 Program Registrations (Excludes Leagues)16,213 15,010 15,403 17,783 18,269 17,531 15,701 17,161 17,972 19,931 Public Safety Fire Number of Calls 1,633 1,143 1,169 1,601 1,614 1,617 1,615 1,742 1,908 1,875 Inspection Permits Issued 6,446 6,531 6,043 9,500 7,469 6,405 5,997 6,227 6,436 6,438 Building permit revenue 1,936,566$ 2,094,901$ 3,786,592$ 4,410,616$ 3,496,417$ 3,059,075$ 2,303,405$ 2,066,787$ 3,388,529$ 3,646,332$ PoliceNumber of Calls 52,041 59,544 60,632 53,746 50,380 49,921 50,741 46,319 52,278 50,909 Public Works: Patching Materials (Tons)2,800 2,700 2,000 2,500 2,400 1,555 2,370 1,650 1,700 1,976 Overlays (Tons)26,300 22,400 23,200 24,000 26,488 29,602 23,070 28,856 29,852 31,503 Crack Filling Materials (Lbs)200,000 200,000 328,000 200,000 154,944 32,000 68,000 42,000 31,920 50,007 Seal Coating (Sq Yards) - Chips Sealed Placed 392,000 475,300 389,698 400,000 375,500 411,700 381,600 405,425 365,907 327,998 Seal Coating (Sq Yards) - Fog Seal/Reclamite Placed n/a n/a n/a n/a n/a n/a n/a n/a n/a 276,296 Water System: Number of Connections 18,948 18,971 19,076 19,195 19,269 19,312 19,362 19,426 19,426 19,426 Water Main Repairs 41 56 23 15 9 28 53 30 18 24 Number of Hydrant Flushed 4,224 4,158 4,267 4,217 4,326 4,311 4,515 4,360 4,395 4,274 Average Daily Usage 7.7 MGD 8.1 MGD 8.5 MGD 7.9 MGD 7.25 MGD 6.99 MGD 7.07 MGD 7.06 MGD 7.08 MG 6.25 MG Sewer System: Number of Connections 18,355 18,416 18,474 18,525 18,578 18,644 18,707 18,865 18,925 18,955 Miles of Sanitary Sewer Cleaned 80 94 85 65 75 81 81 76 65 50 Storm System: Number of Storm Sumps Maintained 93 61 70 61 103 78 91 88 97 48 Sources: Various City Departments MGD - Million Gallons Daily N/A - Not Available 172 City of Eden Prairie, Minnesota Capital Assets Statistics by Function Last Ten Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Public Safety Fire Protection Number of Stations 4 4 4 4 4 4 4 4 4 4 Number of Volunteer Firefighters 96 93 89 95 90 92 99 101 95 92 Police Protection Number of Stations 1 1 1 1 1 1 1 1 1 1 Public Works Miles of City Streets 229 230 231 232 233 234 234 234 235 235 Parks and Recreation City Parks 43 43 43 43 43 43 43 43 43 43 Conservation Areas 15 15 15 15 15 15 15 15 15 15 Historic Sites 5 5 5 5 5 5 5 5 5 5 Special Use Areas 5 5 5 5 5 5 5 5 5 5 Miles of Trails 114 120 122 122 128 128 128 134 134 134.5 Water System Number of Wells 15 15 15 15 15 15 15 15 15 15 Total Pumping Capacity 24 MGD 24 MGD 26 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD Total Storage Capacity 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5 MG 8.5 MG 8.5 MG 8.5 MG 8.5 MG 8.5 MG Miles of Water Mains 269 317 321 323 326 326 328 326 326 327 Sewer System Miles of Sanitary Sewer 244 256 258 258 262 264 264 263 263 264 Miles of Storm Sewer 172 174 179 180 186 189 193 193 193 195 Sources: Various City Departments Note: No Capital Asset Indicators are Available for the General Government Functions. MGD - Million Gallons Daily 173 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota (the City), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated April 8, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and responses as item 2019-001 that we consider to be a material weakness. Honorable Mayor and Members of the City Council City of Eden Prairie Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City’s Response to Finding The City’s response to the finding identified in our audit is described in the accompanying schedule of findings and responses. The response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Minneapolis, Minnesota April 8, 2020 INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota (the City), as of December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated April 8, 2020. The Minnesota Legal Compliance Audit Guide for Cities promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65 contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions and tax increment financing. Our audit included all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City, failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance relating to the provisions of the Minnesota Legal Compliance Audit Guide for Cities and the results of that testing and not to provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Minneapolis, Minnesota April 8, 2020 CITY OF EDEN PRAIRIE SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2019 Finding 2019-001 Type of Finding: Material Weakness in Internal Control over Financial Reporting Criteria or specific requirement: An effective internal control system over financial reporting provides reasonable assurance that reliable financial statements are prepared in accordance with the appropriate accounting standards that in compliance with applicable laws and regulations. Condition/Context: Material audit adjustments were necessary to properly state intergovernmental revenue and deferred inflows of resources. Cause: Two grant reimbursements were not received by the City within its period of availability and had not been booked as deferred inflows of resources. Effect: Material adjustments were proposed during the audit and subsequently recorded by management. Repeat Finding: N/A Recommendation: We recommend that the City ensure that year-end receivables in governmental funds are evaluated for availability and compared to subsequent receipts to ensure that deferred inflows of resources are properly booked, when appropriate. Views of responsible officials: There is no disagreement with the audit finding. ITEM IV. B. PROCLAMATION City of Eden Prairie Hennepin County, Minnesota WHEREAS, the increasing number of seniors in Eden Prairie bring many opportunities and challenges for all components of our City – families, businesses, and government; and WHEREAS, every segment of our society is influenced by the expertise, needs and resources of our seniors; and awareness improves participation and action; and WHEREAS, our Eden Prairie seniors play a pivotal role in formal and informal education, sharing years of accumulated experience and wisdom which will impact our future; and WHEREAS, the community wishes to celebrate and acknowledge the contributions and accomplishments of the seniors in our community and recognize the organizations that serve older adults; and WHEREAS, Senior Awareness Month recognizes that seniors are an integral part of our community. NOW, THEREFORE, the Eden Prairie City Council does herby proclaim May 2020 as: SENIOR AWARENESS MONTH ADOPTED by the Eden Prairie City Council on this 5th day of May 2020. Ronald A. Case, Mayor on behalf of Council Members: Brad Aho Kathy Nelson Mark Freiberg PG Narayanan ITEM IV. C. PROCLAMATION City of Eden Prairie Hennepin County, Minnesota WHEREAS, In 1962, President John F. Kennedy proclaimed May 15th as National Peace Officers Memorial Day and the calendar week in which May 15 falls, as National Police Week; and WHEREAS, the police officers of the of the Eden Prairie Police Department have played a critical role in safeguarding the rights and freedoms of the citizens of our community since January 1st, 1973; and WHEREAS, there are approximately 900,000 law enforcement officers serving in communities across the United States, including the members of the Eden Prairie Police Department who are deeply committed to selflessly protecting the residents of Eden Prairie, regardless of danger or hazard to themselves; and WHEREAS, since the first recorded death in 1791, nearly 22,000 law enforcement officers in the United States have made the ultimate sacrifice and been killed in the line of duty; and WHEREAS, May 15, 2020 is designated as Peace Officers Memorial Day, in honor of all fallen officers and their families. NOW, THEREFORE, I, Ron Case, Mayor of the City of Eden Prairie, Minnesota and on behalf of the Eden Prairie City Council, hereby proclaim the week of May 10-16, 2020 as National Police Week in the City of Eden Prairie and publicly salute the service of law enforcement officers in our community and in communities across the country. ADOPTED by the Eden Prairie City Council on May 5, 2020. Ronald A. Case, Mayor City of Eden Prairie UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, APRIL 21, 2020 7:00 PM, CITY CENTER Virtual Meeting Via WebEx CITY COUNCIL: Mayor Ron Case, Council Members Brad Aho, Mark Freiberg, P G Narayanan, and Kathy Nelson CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Police Chief Greg Weber, City Attorney Maggie Neuville, and Council Recorder Jan Curielli I. CALL THE MEETING TO ORDER Mayor Case called the meeting to order at 7:00 PM. All Council Members were present. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION Mayor Case welcomed viewers to the first ever virtual Eden Prairie City Council meeting. He noted he is conducting the meeting from the Council Chamber, but the other Council Members are participating in the meeting from their homes. He reported the Council and staff are doing everything possible on behalf of the community to continue to make our local City government work and to be as inclusive and interactive as possible under these circumstances to produce the results necessary to continue to keep our community safe, productive and fully functioning. He asked viewers to continue to reach out to Council Members by email or voice. City Hall might be closed to the public, but our many full and part-time employees are all performing their job functions, keeping our City running smoothly, and serving all our residents at the highest capacity. He gave special recognition to our front line employees who are continuing to give their best day in and day out. We so appreciate our police officers, firefighters, road crews, park maintenance staff, water and utility staff and every department that handles day to day operations for the City. He thanked the employees for all they do to make living in our City so positive. Case congratulated Nibir Sarma, an Eden Prairie graduate, for recently winning the National Jeopardy College Championship. IV. PROCLAMATIONS / PRESENTATIONS A. NATIONAL PUBLIC SAFETY TELECOMMUNICATORS WEEK PROCLAMATION CITY COUNCIL MINUTES April 21, 2020 Page 2 Chief Weber reported last week we celebrated National Public Safety Telecommunicators Week. Eden Prairie is fortunate to have an independent public safety answering point that has operated flawlessly for the last 30 years. He noted two of the telecommunicator employees will be celebrating 30 years of service this year. He said we are also grateful to our Fire Department and IT Department employees who do everything they can to keep us operational. Mayor Case read a proclamation proclaiming the week of April 12-18 National Public Safety Telecommunicators Week in the City of Eden Prairie. B. ARBOR DAY PROCLAMATION Lotthammer stated Eden Prairie has been a Tree City USA for quite some time. This year our Arbor Day celebration will not be what it has been in the past, but we did conduct a tree sale so residents could purchase a variety of trees to help diversify our stock. Our stock of trees was sold out and we needed to order more, which indicates how much people in Eden Prairie value trees. Most years we would have a celebration at Round Lake, but that won’t take place this year. Case was proud of Eden Prairie for a 25-year history with our tree preservation policy and the work we have done to preserve trees across the City. We have more trees in Eden Prairie now than at any time in our history. He read a proclamation proclaiming April 24, 2020, as Arbor Day in the City of Eden Prairie. C. ACCEPT DONATION OF $5,000 FROM ELAINE SAMPSON FOR PURCHASE OF ART CENTER EQUIPMENT (Resolution No. 2020-48) Lotthammer reported it has been 12 years since the Sampson family gave the Art Center to the City of Eden Prairie, and that building has come a long way in its development. He thanked Elaine Sampson for much of the funding for the equipment in the Art Center. He noted many people use the facility, and Ms Sampson has helped the residents of Eden Prairie to be involved in the arts. MOTION: Nelson moved, seconded by Aho, to adopt Resolution No. 2020-48 accepting the donation in the amount of $5,000 from Elaine Sampson to go toward Art Center equipment. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” D. ACCEPT DONATION OF $1,100 FROM DR. AHMAD ORANDI FOR PURCHASE OF OUTDOOR CENTER EQUIPMENT (Resolution No. 2020-49) Lotthammer reported Dr. Ahmad Orandi visited the Observatory at Staring Lake as a participant in our Star Watch program and had a desire to give back to support science at the Outdoor Center. His donation of $1,100 will be used for equipment and programs at the Outdoor Center. CITY COUNCIL MINUTES April 21, 2020 Page 3 MOTION: Narayanan moved, seconded by Freiberg, to adopt Resolution No. 2020-49 accepting the donation of $1,100 from Dr. Ahmad Orandi to the Staring Lake Outdoor Center. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Getschow said Item VIII.T. should be removed from the Consent Calendar. The item is not ready and will be brought back for approval at a future Council meeting. MOTION: Aho moved, seconded by Narayanan, to approve the agenda as amended. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, MARCH 17, 2020 B. CITY COUNCIL MEETING HELD TUESDAY, MARCH 17, 2020 MOTION: Aho moved, seconded by Narayanan, to approve the minutes of the Council Workshop held Tuesday, March 17, 2020, and the City Council meeting held Tuesday, March 17, 2020, as published. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” VII. REPORTS OF ADVISORY BOARDS AND COMMISSIONS VIII. CONSENT CALENDAR A. CLERK’S LICENSE LIST B. EDEN RIDGE, LLC by Eden Ridge, LLC. Second Reading of Ordinance 7-2020- PUD-3-2020 for PUD District Review with waivers and Zoning District Change from Rural to R1-9.5 on 4.3 acres; Development Agreement (Ordinance No. 7-2020-PUD-3-2020 for PUD district amendment and zoning change) C. GOLDEN TRIANGLE INDUSTRIAL DEVELOPMENT by Opus Development Company LLC. Second Reading of Ordinance 8-2020-PUD-4-2020 for PUD District Review with waivers and Zoning District Change from Rural to I-2 and Parks and Open Space on 10.258 acres; Development Agreement (OrdinanceNo. 8-2020- PUD-4-2020 for PUD district review and zoning change; Resolution No. 2020-50 for Site Plan Review) D. ADOPT RESOLUTION NO. 2020-51 APPROVING FINAL PLAT OF GOLDEN TRIANGLE INDUSTRIAL CITY COUNCIL MINUTES April 21, 2020 Page 4 E. ADOPT RESOLUTION NO. 2020-52 APPROVING FINAL PLAT OF ISD 272 CMS ADDITION F. APPROVE 2019 UNBUDGETED FUND TRANSFERS G. DECLARE SURPLUS PROPERTY H. ADOPT RESOLUTION NO. 2020-53 AUTHORIZING APPLICATION FOR GRANT FUNDS TOWARDS PLAY STRUCTURES THROUGH THE HENNEPIN COUNTY YOUTH SPORTS GRANT PROGRAM I. ADOPT RESOLUTION NO, 2020-54 RATIFYING AGREEMENT FOR CITY USE OF CAMP EDEN WOOD J. APPROVE CHANGE ORDERS 3, 4 AND 5 FOR PRESERVE BOULEVARD RECONSTRUCTION PROJECT K. AWARD CONTRACT TO ALLIED BLACKTOP COMPANY FOR 2020 SEALCOAT L. AWARD CONTRACT TO CEMSTONE PRODUCTS COMPANY FOR 2020 CONCRETE SUPPLY M. AWARD CONTRACT TO BITUMINOUS ROADWAYS, INC. FOR 2020 PAVEMENT MANAGEMENT PROJECT N. APPROVE AGREEMENT WITH SRF FOR TC&W ROADWAY SAFETY IMPROVEMENTS IN-CONSTRUCTION SERVICES O. ADOPT RESOLUTION 2020-55 APPROVING LOCAL ROAD IMPROVEMENT GRANT AGREEMENT WITH MNDOT FOR TC&W ROADWAY SAFETY IMPROVEMENTS P. AUTHORIZE PURCHASE OF LENCO BEARCAT ARMORED VEHICLE Q. AWARD CONTRACT TO NORTHSTAR MUDJACKING AND MORE FOR 2020 MUDJACKING R. APPROVE AGREEMENT WITH HTPO FOR DEERFIELD TRAIL IMPROVEMENTS AND CURB AND GUTTER REPLACEMENT PROJECT S. AWARD CONTRACT TO BKJ EXCAVATING FOR 2020 DEERFIELD TRAIL IMPROVEMENTS PROJECT T. APPROVE PURCHASE OF STREETLIGHTS FOR EDEN ROAD & TOWN CENTER PLACE CITY COUNCIL MINUTES April 21, 2020 Page 5 U. ADOPT RESOLUTION NO. 2020-56 RATIFYING FIRST AMENDMENT TO LEASE AGREEMENT WITH NGUYEN FAMILY INC. DBA LOTUS NAILS SPA AND THIRD AMENDMENT TO LEASE AGREEMENT WITH PUREGRACE, LLC DBA SMITH COFFEE Freiberg asked for clarification of Item P., the purchase of a Bearcat armored vehicle. Chief Weber replied the Lenco Bearcat armored vehicle is a vehicle our SWAT team will use for their safety and the safety of those we deal with in the community during volatile situations. MOTION: Nelson moved, seconded by Freiberg, to approve Items A-U, minus Item T, on the Consent Calendar. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” IX. PUBLIC HEARINGS / MEETINGS A. VACATION OF CMS RIGHT-OF-WAY AND EASEMENTS (Resolution No. 2020-57) Getschow explained we have to vacate right-of-way easements for many development projects in the City. This item is related to the CMS project approved at a previous Council meeting He noted Xcel Energy filed an objection to the easement, and the School District and City staff are working with them. He asked for the motion to be contingent on Xcel Energy withdrawing their objection. Aho asked if we know what Xcel’s objection is to the vacation. Ellis responded the objection is that one of their facilities they were unaware of is located within the easement. The School District will help them with relocating the facility, and they will withdraw the objection. Aho commented that means it would be more of a timing issue than objecting to the project itself. Case commented this public hearing is not that large or critical in terms of outcome as some that may come before the Council at future meetings. He asked Mr. Getschow to review how the public could respond to items on the Council agenda during this time with a virtual meeting format. Getschow explained instructions were sent regarding how people could comment on any item on the agenda when the Council packet was published. For the public hearing tonight we also provide an opportunity for people to call in now and speak about the item by following the instructions on the screen. He noted many of the cities around us have conducted public hearings in the same virtual format. Case asked how we would distribute communications received from people about future public hearings. Getschow replied it would be read at this point in the meeting during the public hearing. There have been other occasions when we have had documents read into the record. Case asked if that would mean we would read emails CITY COUNCIL MINUTES April 21, 2020 Page 6 live at the time of the public hearing. Getschow said that was correct, and noted the fact we received no communications about this item tonight. Case opened the public hearing. Case asked how we would proceed if this were a public hearing that had 12 or so people who phoned in and wanted to speak. Getschow said we would keep them in the order the calls were received. The calls would be announced to the Mayor, and the callers would be taken in sequence. Case noted he was not sure the May meeting will be held in the Council Chamber or as a virtual meeting, but there will be a public hearing of a development project included in the meeting. Case asked what would happen if someone missed the meeting and wanted to comment later. Getschow replied we would take feedback after the fact, but the public hearing would be closed and the action would have been taken. Case noted a public hearing item is not final until second reading, and asked Ms Neuville if we could take feedback from someone who sent in some comment for consideration by the Council before second reading. Ms Neuville replied the City Council can consider any information in front of it prior to second reading, although State statute does not specifically address that subject for public meetings held by video or phone. If it comes to that, the Council might have to decide on a case by case basis because there is no real legal authority or guidance for how to handle such a situation. Case asked if, in a normal situation with a public hearing in the Council Chamber, someone could have submitted something to be included in the record prior to second reading. Ms Neuville replied the public hearing is noticed as a public hearing, and the City Council is only required to listen to those comments from people at the properly noticed public hearing. She would say it could not be included in the record, but we might have to look at it on a case by case basis if there were, for example, a technical issue involved. Getschow noted nothing came in regarding this particular item. There were no comments from the audience. MOTION: Aho moved, seconded by Narayanan, to close the public hearing; and to adopt Resolution No. 2020-57 vacating Right-of-Way and Drainage and Utility Easements, contingent on the Xcel Energy objection being withdrawn. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” X. PAYMENT OF CLAIMS MOTION: Narayanan moved, seconded by Freiberg, to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” CITY COUNCIL MINUTES April 21, 2020 Page 7 XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS, AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS Case asked the Council Members for their comments about the virtual meeting. Nelson asked if the Council Members will be able to have a presentation like we normally receive for agenda items. Getschow replied we have the ability to present information and people can provide presentations. Case noted they can also load in a PowerPoint before the meeting. Nelson asked if a neighborhood group would have the ability to give us a PowerPoint in advance of the meeting. Getschow replied he believed people have given a presentation as part of a public hearing so we could televise that. Nelson asked when such input would have to be submitted. Getschow said we would appreciate receiving the information by noon of the meeting date. It would be more difficult if they were to bring the information the evening of the meeting. Narayanan commented it would be difficult to show something that was not in electronic form during the meeting so it should be submitted ahead of time. He thought we did a good job tonight and it went well. Case noted we had a lot of IT employees helping tonight. If a resident had a paper copy of something with information they could call the City, bring it to City Hall, and we could scan it to show at the meeting. He thought there are ways we can work it out. We want to continue to allow the public as much access as possible, and everyone should feel free to reach out to individual Council Members. Freiberg thought the technical side of the meeting went well, and he thought we could go forward with this format for a more complicated meeting. Aho said the meeting did go well, and he appreciated the staff that worked on this and made it happen. He did hope we can get together in the usual format because he missed having the meetings in person. Getschow noted things change on a day-by-day basis. We will try to move meetings to City Hall on a social distancing basis. We will keep the public informed of our plans. Case noted that chances are during the next year at least one of the five Council Members or a family member will experience a quarantine, so one of the Council Members may be on virtual camera at home during a meeting. He noted City Hall may be closed, but all our staff are working. CITY COUNCIL MINUTES April 21, 2020 Page 8 B. REPORT OF CITY MANAGER C. REPORT OF COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Aho moved, seconded by Nelson, to adjourn the meeting. Motion was approved on a roll call vote, with Aho, Freiberg, Narayanan, Nelson and Case voting “aye.” Mayor Case adjourned the meeting at 7:41 p.m. - 1 - CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Christy Weigel, Police/ Support Unit ITEM DESCRIPTION: Clerk’s License Application List ITEM NO.: VIII.A. These licenses have been approved by the department heads responsible for the licensed activity. Requested Action Motion: Approve the license changes listed below Cancellation of Temporary Liquor License Approved January 21, 2020 Organization: Eden Prairie Lions Club Event: Schooner Days Date: May 29-31, 2020 Place: Round Lake Park & EP Community Center Parking Lot 16691 & 16700 Valley View Road New On-Sale Wine with Strong Beer and 3.2 Beer License Licensee name: Bombay Pizza Kitchen, LLC DBA: Bombay Pizza Kitchen 16518 West 78th Street CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Randy L. Slick Public Works / Engineering ITEM DESCRIPTION: Approve Final Plat of Eden Ridge ITEM NO.: VIII.B. Requested Action Move to: Adopt the resolution approving the final plat of Eden Ridge. This proposal is for a plat located at 15807 and 15817 Valley View Road. The plat consists of 4.3 acres to be platted into 10 single family lots, two outlots and right-of-way dedication for street purposes. Background Information The preliminary plat was approved by the City Council on March 17, 2020. Second reading of the Rezoning Ordinance and final approval of the Developer’s Agreement was approved by the City Council on April 21, 2020. Approval of the final plat is subject to the following conditions: • Receipt of engineering fee in the amount of $1,000.00 • Receipt of street lighting fee in the amount of $1,443.42 • Receipt of street sign fee in the amount of $755.00 • Prior to the release of the final plat, Developer shall execute a Special Assessment Agreement for trunk sewer and water on an assessable area of .40 acres in the amount of $3,483.52. • Developer shall submit a permit fee of five percent of the construction value of the public improvements prior to the release of the final plat. • Satisfaction of bonding requirements for the installation of the public improvements. • Prior to the release of the final plat, Developer shall submit a disk in AutoCAD format in Hennepin County coordinates containing parcel and easement data. Attachments Resolution Drawing of final plat CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020- A RESOLUTION APPROVING FINAL PLAT OF EDEN RIDGE WHEREAS, the plat of Eden Ridge has been submitted in a manner required for platting land under the Eden Prairie Ordinance Code and under Chapter 462 of the Minnesota Statutes and all proceedings have been duly had thereunder; and WHEREAS, said plat is in all respects consistent with the City plan and the regulations and requirements of the laws of the State of Minnesota and ordinances of the City of Eden Prairie. NOW, THEREFORE, BE IT RESOLVED by the Eden Prairie City Council: A. Plat approval request for Eden Ridge is approved upon compliance with the recommendation of the Final Plat Report on this plat dated May 5, 2020. B. That the City Clerk is hereby directed to supply a certified copy of this resolution to the owners of the subdivision of the above named plat. C. That the Mayor and City Manager are hereby authorized to execute the certificate of approval on behalf of the City Council upon compliance with the foregoing provisions. ADOPTED by the Eden Prairie City Council on May 5, 2020. ____________________________ Ronald A. Case, Mayor ATTEST: SEAL __________________________ Kathleen Porta, City Clerk CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Janet Jeremiah/David Lindahl Community Development ITEM DESCRIPTION: Motion to Approve Lease Amendment with Chuck and Don’s Pet Food & Supplies ITEM NO.: VIII.C. Requested Action Move to: Approve First Amendment to Lease Agreement with IPP – Stores, LLC, a Delaware limited liability company d/b/a Chuck & Don’s Pet Food & Supplies. Synopsis The lease amendment allows Chuck & Don’s to pay 70% of its monthly rent for the months of April, May, and June 2020. The remaining 30% will be deferred and repaid to the City over an 11-month period starting February 2021. Background Information Chuck & Don’s leases space from the City at the Den Road Liquor building located at 8022 Den Road. They notified the City early this month that sales have declined due to a reduction in store hours and customer traffic caused by the Coronavirus Pandemic. The lease amendment will provide temporary rent relief by deferring 30% of their monthly rent until 2021. Attachment First Amendment to Lease Agreement FIRST AMENDMENT TO LEASE AGREEMENT This First Amendment to Lease Agreement (“Amendment”) is entered into this 5th day of May, 2020 by and between the City of Eden Prairie (“Landlord”) and IPP – Stores, LLC, a Delaware limited liability company (“Tenant”). RECITALS: WHEREAS, Landlord and Tenant (through assignment by Hartzell PFO Inc., d/b/a Chuck & Don’s Pet Food & Supplies) are parties to that certain Lease Agreement dated January 22, 2019 (the “Lease”) leasing the premises consisting of approximately 3,379 square feet located at 8022 Den Road, Eden Prairie, Minnesota. Capitalized terms used herein but not defined in this Amendment shall have the definitions set forth in the Lease. AND WHEREAS, due to a downturn in its business as a result of the coronavirus pandemic, the Tenant is requesting rent relief and Landlord has agreed to provide such rent relief; AND WHEREAS, the parties hereto are mutually desirous of memorializing the structure of such rent relief as hereinafter provided: 1. RENT DEFERRAL PERIOD. Tenant shall pay to Landlord seventy percent (70%) of its monthly Rent for the months of April, May, and June 2020. The remaining thirty percent (30%) of Rent for such months shall be deferred as set forth herein, and is referred to as the “Deferred Rent”. Tenant shall be required to pay to Landlord all Additional Rent for April, May, and June, 2020, on the dates when such Additional Rent is due and owing under the Lease. Regular Rent Payments as described in the Lease shall recommence for the payment due in July 2020, and thereafter as required under the Lease. For purposes hereof, “Rent Payments” shall include all amounts owing to Landlord from Tenant under the Lease, however defined in the Lease, including, but not limited to, base rent, additional rent, CAM charges, common area maintenance charges, operating costs, or any other amounts by whatever name, to be paid by Tenant to Landlord pursuant to the Lease. Landlord waives late fees, interest, penalty, or financial charge of any kind to Tenant related to the Deferred Rent, unless Tenant fails to pay the Deferred Rent as required by paragraph 2 of this Amendment. Landlord further waives the payment default that would otherwise occur under the Lease occasioned by Tenant’s performance hereunder related to such rent deferral and agrees that this Amendment modifies the Lease. 2. DEFERRED RENT REPAYMENT. Tenant covenants and agrees to repay the Deferred Rent starting on the Rent Payments payment date in February 2021 in eleven (11) equal payments on the same date that Rent Payments are due under the Lease in the months of February through December 2021, as so much Additional Rent. For avoidance of doubt, Rent is presently $7,602.75 per month, of which $2,280.83 (30%) shall be deferred per month. Three months of thirty percent (30%) of Rent deferred is therefore $6,842.49, which is the Deferred Rent. $622.04 of the Deferred Rent shall be paid with each regular Rent Payment on the Rent Payments due dates in February through December 2021. IN WITNESS WHEREOF the parties hereto have executed this Amendment to Lease the date and year first above written. Other than as specifically set forth herein, nothing about this Amendment to Lease shall alter the rights or obligations of the parties as set forth in the Lease. This Amendment may be signed electronically and in PDF format. Collated signatures shall be treated as one complete document. TENANT: IPP – Stores, LLC A Delaware limited liability company By: __________________________________ Title: ________________________________ Date: ________________________________ LANDLORD: City of Eden Prairie a Minnesota municipal corporation By: __________________________________ Ronald A. Case Its: Mayor Date: ________________________________ By: __________________________________ Rick Getschow Its: City Manager Date: ________________________________ CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT / DIVISION: Maggie Neuville City Attorney ITEM DESCRIPTION: Approve Termination of Declaration of Easements and City Consent and Joinder related to for Castle Ridge redevelopment ITEM NO.: VIII.D. Requested Action Move to: Approve Termination of Declaration of Easements and authorize execution of City Consent and Joinder Synopsis In connection with its purchase of Outlot A, Castle Ridge 3rd Addition from Castle Ridge Care Center, Inc. (Presbyterian Homes) for the Paravel multi-family development, Paravel Property, LLC conducted title review on the property and discovered a Declaration of Easements filed in 1981 (“Declaration”). The Declaration provides for several easements benefitting and burdening lots as shown on the original plat of Castle Ridge. Through replatting over the years, a portion of the property described in the Declaration is now Outlots A and B, Columbine Road Addition, which are owned by the City. Paravel has requested that the City consent to the termination of the Declaration, as the easements are no longer applicable given the redevelopment of the property. Planning and engineering staff have confirmed that the easements affecting the City’s property described in the Declaration—which include easements for storm sewer, fire protection, and access—are no longer necessary or applicable and those items are addressed in the new development plans approved for Presbyterian Homes and Paravel. Other property owners affected by the Declaration have also agreed to consent to the termination. The City Attorney recommends approval of the Termination of Declaration of Easements and execution of the Consent and Joinder. Attachment Termination of Declaration (of Easements) {00230283 2} TERMINATION OF DECLARATION (OF EASEMENTS) WHEREAS, TUDOR OAKS CONDOMINIUM PROJECT, an Ontario, Canada, Limited Partnership, executed that certain Declaration (of Easements) dated as of July 9, 1981, recorded July 28, 1981, in the office of the County Recorder for Hennepin County, Minnesota, as Document No. 4659643 (the “Declaration”), affecting certain real property in Hennepin County, Minnesota, as legally described in the Declaration (the “Property”). WHEREAS, Castle Ridge Care Center, Inc., a Minnesota nonprofit corporation (“CRCC”), as successor to Tudor Oaks Condominium Project, is the primary intended Benefitted Party (defined in the Declaration) of such covenants, restrictions, and easements as set forth in the Declaration. CRCC is now redeveloping portions of the Property and wishes to terminate the covenants, restrictions, and easements in their entirety. WHEREAS, due to subsequent replatting and conveyance of portions of the Property, CRCC, the City of Eden Prairie, a Minnesota municipal corporation (“City”); 605 Prairie Center Drive, LLC, a Minnesota limited liability company (“605”); and Clark Investment Properties, Inc., a Minnesota corporation (“Clark”); each own certain portions of the Property. WHEREAS, City, 605, and Clark are the remaining Benefitted Parties, and by execution and delivery of the attached Consent and Joinders, do hereby consent to the termination of such covenants, restrictions, and easements as set forth in the Declaration and the recording of this termination in the applicable real estate records. NOW, THEREFORE, This is to certify that the covenants and restrictions set forth in the Declaration are null and void and of no further force or effect, and the County Recorder and Registrar of Titles in and for the County of Hennepin and State of Minnesota are hereby authorized to accept this instrument for recording as a conclusive determination of the termination and release of all covenants and restrictions set forth in the Declaration, as specified and as a complete termination of all rights and other remedial provisions of the Declaration. [Signature page follows] {00230283 2} Dated this ________ day of April, 2020. CASTLE RIDGE CARE CENTER, INC., a Minnesota nonprofit corporation By: Name: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2020, by ________________________, the _____________________________ of Castle Ridge Care Center, Inc., a Minnesota nonprofit corporation, on behalf of the nonprofit corporation. ________________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: Vantage Law Group, PLLC (LSL) 125 SE Main St., Suite 250 Minneapolis, MN 55414 {00230283 2} CONSENT AND JOINDER TO TERMINATION OF DECLARATION (OF EASEMENTS) The undersigned, as Benefitted Party pursuant to that certain Declaration (of Easements) dated as of July 9, 1981, recorded July 28, 1981, in the office of the County Recorder for Hennepin County, Minnesota, as Document No. 4659643 (the “Declaration”), hereby consents to and joins in the foregoing Termination of Declaration (of Easements) (the “Termination”). The County Recorder and Registrar of Titles in and for the County of Hennepin and State of Minnesota are hereby authorized to accept this instrument for recording as the undersigned’s conclusive consent to and joinder in the Termination as a complete termination of all rights and other remedial provisions of the Declaration. IN WITNESS WHEREOF, the undersigned has caused this Consent and Joinder to be executed this 5th day of May, 2020. CITY OF EDEN PRAIRIE By___________________________ Ronald A. Case Its Mayor By____________________________ Rick Getschow Its City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________________, 2020, by Ronald A. Case and Rick Getschow, respectively the Mayor and the City Manager of the City of Eden Prairie, a Minnesota municipal corporation, on behalf of said corporation. ______________________________ Notary Public {00230283 2} CONSENT AND JOINDER TO TERMINATION OF DECLARATION (OF EASEMENTS) The undersigned, as Benefitted Party pursuant to that certain Declaration (of Easements) dated as of July 9, 1981, recorded July 28, 1981, in the office of the County Recorder for Hennepin County, Minnesota, as Document No. 4659643 (the “Declaration”), hereby consents to and joins in the foregoing Termination of Declaration (of Easements) (the “Termination”). The County Recorder and Registrar of Titles in and for the County of Hennepin and State of Minnesota are hereby authorized to accept this instrument for recording as the undersigned’s conclusive consent to and joinder in the Termination as a complete termination of all rights and other remedial provisions of the Declaration. IN WITNESS WHEREOF, the undersigned has caused this Consent and Joinder to be executed this _____ day of _______________, 2020. CLARK INVESTMENT PROPERTIES, INC., a Minnesota corporation By: Name: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2020, by _____________________________, the _____________________________ of Clark Investment Properties, Inc., a Minnesota corporation, on behalf of the corporation. ________________________________________ Notary Public {00230283 2} CONSENT AND JOINDER TO TERMINATION OF DECLARATION (OF EASEMENTS) The undersigned, as Benefitted Party pursuant to that certain Declaration (of Easements) dated as of July 9, 1981, recorded July 28, 1981, in the office of the County Recorder for Hennepin County, Minnesota, as Document No. 4659643 (the “Declaration”), hereby consents to and joins in the foregoing Termination of Declaration (of Easements) (the “Termination”). The County Recorder and Registrar of Titles in and for the County of Hennepin and State of Minnesota are hereby authorized to accept this instrument for recording as the undersigned’s conclusive consent to and joinder in the Termination as a complete termination of all rights and other remedial provisions of the Declaration. IN WITNESS WHEREOF, the undersigned has caused this Consent and Joinder to be executed this _____ day of _______________, 2020. 605 PRAIRIE CENTER DRIVE, LLC, a Minnesota limited liability company By: Name: Its: STATE OF _______________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2020, by _____________________________, the _____________________________ of 605 Prairie Center Drive, LLC, a Minnesota limited liability company, on behalf of the limited liability company. ________________________________________ Notary Public Requested Action Move to: Adopt Resolution designating the Sun Current as the official City newspaper for the remainder of the year 2020. Synopsis The Eden Prairie News served Eden Prairie as the official newspaper for a total of 39 years and has published their final newspaper on April 30, 2020. The Sun Current has agreed to serve as our official newspaper. The Sun-Current was the official newspaper for Eden Prairie from 2003 through 2007. Attachment Resolution CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT / DIVISION: Administration City Clerk ITEM DESCRIPTION: Designate Official City Newspaper ITEM NO.: VIII.E. CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020-__ A RESOLUTION DESIGNATING THE OFFICIAL CITY NEWSPAPER BE IT RESOLVED, by the City Council of the City of Eden Prairie, Minnesota that the Eden Prairie Sun Current be designated as the official City newspaper for the remainder of the year 2020. ADOPTED by the City Council of the City of Eden Prairie, on this 5th day of May, 2020. ______________________________ Ronald A. Case, Mayor ATTEST: ______________________________ Kathleen Porta, City Clerk CCCITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Leslie Stovring Engineering Division / Water Resources ITEM DESCRIPTION: IC# 15-5901 Approve Professional Services Agreement with Blue Water Science for the 2020 Water Quality Monitoring Program ITEM NO.: VIII.F. Requested Action Move to: Approve Professional Services Agreement with Blue Water Science for the 2020 Water Quality Monitoring Program in the amount of $45,750. Synopsis The proposal from Blue Water Science continues the City’s ongoing monitoring program to help manage our lakes and ponds. Monitoring is conducted annually to evaluate water quality trends in relation to maintaining the status of our lakes in relation to impaired waters criteria. In addition, the monitoring is used to assess lakes for treatment options such as harvesting and the use of alum to improve water quality. The costs of water quality improvement and monitoring projects are paid out of the stormwater utility. Background Information The budget for the water quality sampling program was established in the City’s Local Water Management Plan. City staff have met with the Nine Mile Creek (NMCWD) and Riley- Purgatory-Bluff Creek (RPBCWD) Watershed Districts to discuss projects proposed for the upcoming year in order to coordinate activities and avoid duplication. A request for proposal was sent to Wenck & Associates, WSB & Associates, Fortin Consulting and Blue Water Science. The low bid was submitted by Blue Water Science. The following actions are included for sampling in 2020: • Vegetation sampling for Duck Lake, Birch Island Lake and Purgatory Creek Park to provide information regarding the extent of invasive species within the wetland and ponding areas. • Water quality sampling for McCoy, Mitchell, Red Rock and Round Lakes. The City, University of Minnesota and the Riley Purgatory Bluff Creek Watershed District will use the water quality monitoring results for the improvement projects and research studies that are currently ongoing. This includes the Vegetation Management Plan updates for Mitchell and Red Rock Lakes. • Water quality, algae and zooplankton sampling for Birch Island and Smetana Lakes. The information collected will assist with the Use Attainability Assessments that are being updated by the Nine Mile Creek Watershed District. The estimated cost is $45,750 and will be paid from the storm water utility fund. Attachment Agreement for Professional Services 2017 06 01 Version 2017 06 01 Agreement for Professional Services This Agreement (“Agreement”) is made on the _________ day of___________, 20__, between the City of Eden Prairie, Minnesota (hereinafter "City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and ______________________________ (“Consultant”), a Minnesota sole proprietorship (hereinafter "Consultant") whose business address is _____________________________________________. Preliminary Statement The City has adopted a policy regarding the selection and hiring of consultants to provide a variety of professional services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of professional services by Consultant for_________________________________ hereinafter referred to as the "Work". The City and Consultant agree as follows: 1.Scope of Work. The Consultant agrees to provide the professional services shown in Exhibit A (____________________________________________) in connection with the Work. Exhibit A is intended to be the scope of service for the work of the Consultant. Any general or specific conditions, terms, agreements, consultant or industry proposal, or contract terms attached to or a part of Exhibit A are declined in full and, accordingly, are deleted and shall not be in effect in any manner. 2.Term. The term of this Agreement shall be from _________________ through ________________ the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated. 3.Compensation for Services. City agrees to pay the Consultant on an hourly basis plus expenses in a total amount not to exceed $____________ for the services as described in Exhibit A.a.Any changes in the scope of the work which may result in an increase to the compensation due the Consultant shall require prior written approval by an authorized representative of the City or by the City Council. The City will not payadditional compensation for services that do not have prior written authorization. b.Special Consultants may be utilized by the Consultant when required by the complex or specialized nature of the Project and when authorized in writing by the City. Page 2 of 10 2017 06 01 c. If Consultant is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Consultant will be entitled to payment for its reasonable additional charges, if any, due to the delay. 4. City Information. The City agrees to provide the Consultant with the complete information concerning the Scope of the Work and to perform the following services: a. Access to the Area. Depending on the nature of the Work, Consultant may from time to time require access to public and private lands or property. As may be necessary, the City shall obtain access to and make all provisions for the Consultant to enter upon public and private lands or property as required for the Consultant to perform such services necessary to complete the Work. b. Consideration of the Consultant's Work. The City shall give thorough consideration to all reports, sketches, estimates, drawings, and other documents presented by the Consultant, and shall inform the Consultant of all decisions required of City within a reasonable time so as not to delay the work of the Consultant. c. Standards. The City shall furnish the Consultant with a copy of any standard or criteria, including but not limited to, design and construction standards that may be required in the preparation of the Work for the Project. d. City's Representative. A person shall be appointed to act as the City's representative with respect to the work to be performed under this Agreement. He or she shall have complete authority to transmit instructions, receive information, interpret, and define the City's policy and decisions with respect to the services provided or materials, equipment, elements and systems pertinent to the work covered by this Agreement. 5. Method of Payment. The Consultant shall submit to the City, on a monthly basis, an itemized invoice for professional services performed under this Agreement. Invoices submitted shall be paid in the same manner as other claims made to the City for: a. Progress Payment. For work reimbursed on an hourly basis, the Consultant shall indicate for each employee, his or her name, job title, the number of hours worked, rate of pay for each employee, a computation of amounts due for each employee, and the total amount due for each project task. Consultant shall verify all statements submitted for payment in compliance with Minnesota Statutes Sections 471.38 and 471.391. For reimbursable expenses, if provided for in Exhibit A, the Consultant shall provide an itemized listing and such documentation as reasonably required by the City. Each invoice shall contain the City’s project number and a progress summary showing the original (or amended) amount of the contract, current billing, past payments and unexpended balance of the contract. Page 3 of 10 2017 06 01 b. Suspended Work. If any work performed by the Consultant is suspended in whole or in part by the City, the Consultant shall be paid for any services set forth on Exhibit A performed prior to receipt of written notice from the City of such suspension. c. Payments for Special Consultants. The Consultant shall be reimbursed for the work of special consultants, as described herein, and for other items when authorized in writing by the City. d. Claims. To receive any payment on this Agreement, the invoice or bill must include the following signed and dated statement: “I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid.” 6. Project Manager and Staffing. The Consultant shall designated a Project Manager and notify the City in writing of the identity of the Project Manager before starting work on the Project. The Project Manager shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Consultant may not remove or replace the Project Manager without the approval of the City. 7. Standard of Care. Consultant shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Consultant shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Consultant's breach of this standard of care. Consultant shall put forth reasonable efforts to complete its duties in a timely manner. Consultant shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Agreement. Consultant shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 8. Termination. This Agreement may be terminated by either party by seven (7) days written notice delivered to the other party at the address written above. Upon termination under this provision, if there is no fault of the Consultant, the Consultant shall be paid for services rendered and reimbursable expenses until the effective date of termination. If however, the City terminates the Agreement because the Consultant has failed to perform in accordance with this Agreement, no further payment shall be made to the Consultant, and the City may retain another consultant to undertake or complete the Work identified herein. 9. Subcontractor. The Consultant shall not enter into subcontracts for services provided under this Agreement except as noted in the Scope of Work, without the express written consent of the City. The Consultant shall pay any subcontractor involved in the performance of this Agreement within ten (10) days of the Consultant's receipt of payment by the City for undisputed services provided by the subcontractor. If the Consultant fails within that time to pay the subcontractor any undisputed amount for which the Consultant Page 4 of 10 2017 06 01 has received payment by the City, the Consultant shall pay interest to the subcontractor on the unpaid amount at the rate of 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Consultant shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. 10. Independent Consultant. Consultant is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Consultant and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Consultant an employee of the City. 11. Insurance. a. General Liability. Prior to starting the Work, Consultant shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Consultant or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. b. Consultant shall procure and maintain the following minimum insurance coverages and limits of liability for the Work: Worker’s Compensation Statutory Limits Employer’s Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Commercial General $1,000,000 property damage and bodily Liability injury per occurrence $2,000,000 general aggregate $2,000,000 Products – Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles.) Page 5 of 10 2017 06 01 Umbrella or Excess Liability $1,000,000 c. Commercial General Liability. The Commercial General Liability Policy shall be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance shall cover liability arising from premises, operations, independent contractors, products- completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage or work performed by subcontractors. d. Professional Liability Insurance. In addition to the coverages listed above, Consultant shall maintain a professional liability insurance policy in the amount of $2,000,000. Said policy need not name the City as an additional insured. It shall be Consultant’s responsibility to pay any retention or deductible for the professional liability insurance. Consultant agrees to maintain the professional liability insurance for a minimum of two (2) years following termination of this Agreement. e. Consultant shall maintain “stop gap” coverage if Consultant obtains Workers’ Compensation coverage from any state fund if Employer’s liability coverage is not available. f. All policies, except the Worker’s Compensation Policy, Automobile Policy, and Professional Liability Policy, shall name the “City of Eden Prairie” as an additional insured including products and completed operations. g. All policies, except the Professional Liability Policy, shall apply on a “per project” basis. h. All General Liability policies, Automobile Liability policies and Umbrella policies shall contain a waiver of subrogation in favor of the City. i. All policies, except for the Worker’s Compensation Policy and the Professional Liability Policy, shall be primary and non-contributory. j. All polices, except the Worker’s Compensation Policy, shall insure the defense and indemnity obligations assumed by Consultant under this Agreement. The Professional Liability policy shall insure the defense and indemnity obligations assumed by Consultant under this Agreement except with respect to the liability for loss or damage resulting from the negligence or fault of anyone other than the Consultant or others for whom the Consultant is legally liable. k. Consultant agrees to maintain all coverage required herein throughout the term of the Agreement and for a minimum of two (2) years following City’s written acceptance of the Work. Page 6 of 10 2017 06 01 l. It shall be Consultant’s responsibility to pay any retention or deductible for the coverages required herein. m. All policies shall contain a provision or endorsement that coverages afforded thereunder shall not be cancelled or non-renewed or restrictive modifications added, without thirty (30) days’ prior notice to the City, except that if the cancellation or non- renewal is due to non-payment, the coverages may not be terminated or non-renewed without ten (10) days’ prior notice to the City. n. Consultant shall maintain in effect all insurance coverages required under this Paragraph at Consultant’s sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. o. A copy of the Consultant’s Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Consultant’s Work. Upon request a copy of the Consultant’s insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Consultant has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Consultant of any deficiencies in such documents and receipt thereof shall not relieve Consultant from, nor be deemed a waiver of, City’s right to enforce the terms of Consultant’s obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. p. Effect of Consultant’s Failure to Provide Insurance. If Consultant fails to provide the specified insurance, then Consultant will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Consultant, its subcontractors, agents, employees or delegates. Consultant agrees that this indemnity shall be construed and applied in favor of indemnification. Consultant also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. Page 7 of 10 2017 06 01 If a claim arises within the scope of the stated indemnity, the City may require Consultant to: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii. Furnish a written acceptance of tender of defense and indemnity from Consultant's insurance company. Consultant will take the action required by the City within fifteen (15) days of receiving notice from the City. 12. Indemnification. Consultant will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Consultant, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Consultant, its agents, contractors and employees, relative to this Agreement. City will indemnify and hold Consultant harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 13. Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of the Agreement (“Information”) shall become the property of the City, but Consultant may retain copies of such documents as records of the services provided. The City may use the Information for its purposes and the Consultant also may use the Information for its purposes. Use of the Information for the purposes of the project contemplated by this Agreement (“Project”) does not relieve any liability on the part of the Consultant, but any use of the Information by the City or the Consultant beyond the scope of the Project is without liability to the other, and the party using the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. 14. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. GENERAL TERMS AND CONDITIONS Page 8 of 10 2017 06 01 15. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 16. Compliance with Laws and Regulations. In providing services hereunder, the Consultant shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 17. Conflicts. No salaried officer or employee of the City and no member of the Council of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. 19. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 20. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one (1) year thereafter, without prior written consent of the former employer in each case. 21. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 22. Entire Agreement, Construction, Application and Interpretation. This Agreement is in furtherance of the City’s public purpose mission and shall be construed, interpreted, and applied pursuant to and in conformance with the City's public purpose mission. The entire agreement of the parties is contained herein. This Contract supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Contract shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24. Non-Discrimination. During the performance of this Agreement, the Consultant shall not discriminate against any employee or applicants for employment because of race, color, Page 9 of 10 2017 06 01 creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Consultant shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Consultant further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 25. Notice. Any notice required or permitted to be given by a party upon the other is given in accordance with this Agreement if it is directed to either party by delivering it personally to an officer of the party, or if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid, or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed to the address listed on page 1 hereof. Notices shall be deemed effective on the earlier of the date of receipt or the date of mailing or deposit as aforesaid, provided, however, that if notice is given by mail or deposit, that the time for response to any notice by the other party shall commence to run one business day after any such mailing or deposit. A party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 26. Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 27. Services Not Provided For. No claim for services furnished by the Consultant not specifically provided for herein shall be honored by the City. 28. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 29. Statutory Provisions. a. Audit Disclosure. The books, records, documents and accounting procedures and practices of the Consultant or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. b. Data Practices. Any reports, information, or data in any form given to, or prepared or assembled by the Consultant under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, Page 10 of 10 2017 06 01 received, stored, used, maintained, or disseminated by Consultant in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Consultant shall comply with those requirements as if it were a government entity. All subcontracts entered into by Consultant in relation to this Agreement shall contain similar Data Practices Act compliance language. 30. Waiver. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE Mayor City Manager CONSULTANT By: Its: Exhibit A: 2020 Lake Sampling Program P R O P O S A L To: Leslie A. Stovring, Environmental Coordinator From: Steve McComas, Blue Water Science Date: April 15, 2020 Re: 2020 Lake Sampling Program Proposal for Eden Prairie The sampling program will include the Tasks outlined below. All lake water quality data collected will be entered into the Minnesota Pollution Control Agency’s water quality database. SECTION 1 - SCOPE OF WORK TASK 1-WATER QUALITY MONITORING-NINE MILE CREEK WATERSHED: BIRCH ISLAND AND SMETANA The following samples will be collected every other week from May through end of October for the lakes listed above. Samples will be collected, except for Secchi disc depth, from the surface to bottom of each lake in one-meter increments. Parameters to be analyzed in the field: • Secchi disc • Temperature and dissolved oxygen profiles • Conductivity • pH Parameters to be analyzed by a laboratory: • Total phosphorus (surface, mid-depth, and bottom samples) • Orthophosphate (surface, mid-depth, and bottom samples) • Total dissolved phosphorus (surface, mid-depth, and bottom samples) • Chlorophyll a (surface, mid-depth, and bottom samples) • Ammonium • Nitrate/nitrite • Total Kjeldahl nitrogen • Total Alkalinity • Total Suspended Solids • Chloride • Iron Lab Costs per Lake: $4,800 -1- TASK 1-WATER QUALITY MONITORING-RILEY PURGATORY BLUFF CREEK WATERSHED- McCOY, MITCHELL, ROUND, RED ROCK The following samples will be collected every other week from May through end of October for the lakes listed above. Samples will be collected, except for Secchi disc depth, from the surface to bottom of each lake in one-meter increments. Parameters to be analyzed in the field: • Secchi disc • Temperature and dissolved oxygen profiles • Conductivity • pH Parameters to be analyzed by a laboratory: • Total phosphorus (surface, mid-depth, and bottom samples) • Orthophosphate (surface, mid-depth, and bottom samples) • Total dissolved phosphorus (surface, mid-depth, and bottom samples) • Chlorophyll a (surface, mid-depth, and bottom samples) • Ammonium • Nitrate/nitrite • Total Kjeldahl nitrogen • Total Alkalinity • Total Suspended Solids • Chloride • Iron Total Lab Costs per Lake: $4,800 TASK 2-VEGETATION SAMPLING-POINT INTERCEPT SURVEY-DUCK AND BIRCH ISLAND Blue Water Science will conduct one mid-summer point intercept survey to map the aquatic vegetation within the lake. TASK 3-VEGETATION SAMPLING-PURGATORY CREEK PARK Blue Water Science will conduct 2 visual surveys within the open-water wetland and stormwater ponding area within Purgatory Creek Park to determine the presence and approximate extent of aquatic invasive species such as curlyleaf pondweed and brittle naiad. TASK 4-PHYTOPLANKTON AND ZOOPLANKTON SAMPLING Conduct phytoplankton (to genus) and zooplankton (to species) sampling in Birch Island Lake utilizing a vertical tow. The first sample must be collected in late May or early June and the second collected in August. TASK 5-REPORT AND MEETING REQUIREMENTS Once the analysis is completed a final report will be prepared which summarizes the results for each water-sampling program. The report must include the following information: • Analysis of existing conditions. • Comparison with historical conditions. • Recommendations for future actions. • Copies of all laboratory reports. • Acknowledgement that all water quality results were entered into the MPCA’s database. Blue Water Science anticipates one meeting to discuss the sample protocol and one meeting to provide a discussion of the results with City Staff. One (1) PDF copy of the Final Report should be submitted by March 31, 2021. -2- SECTION 2 - TERMS AND CONDITIONS Quote for 2020: Lake and Pond Water Sampling and Projects 2/Month May - Oct Secchi, Temp, Diss oxygen, Conductivity, pH, TP, OP, Total Dissolved Phosphorus, Chl, NH3, NO3-NO2, TKN, Total Alkalinity, TSS, Chloride, Iron Costs Total Costs Labor For Sampling Lab Costs Report Costs TASK 1. WATER QUALITY MONITORING Nine Mile Creek Watershed Birch Island 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Smetana 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Subtotal $2,200 $9,600 $1,300 $13,100 Riley Purgatory Bluff Creek Watershed McCoy 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Mitchell 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Red Rock 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Round 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Subtotal $4,400 $19,200 $2,600 $26,200 Total Costs TASK 2. VEGETATION SAMPLING - POINT INTERCEPT SURVEY Duck Lake Mid Summer Point Intercept Plant Survey $1,900 Birch Island Lake Mid Summer Point Intercept Plant Survey $2,100 Subtotal $4,000 Total Costs TASK 3. VEGETATION SAMPLING - PURGATORY CREEK PARK Purgatory Creek Park Two Summer Plant Surveys $800/survey $1,600 Subtotal $1,600 Total Costs TASK 4. PHYTOPLANKTON AND ZOOPLANKTON SAMPLING Birch Island Lake Two algae and 2 zooplankton $250 Subtotal $250 Total Costs TASK 5. REPORT AND MEETING REQUIREMENTS Report preparation included Meetings (2 meetings at $300/meeting)$600 Subtotal $600 -3- Summary of Proposed Costs for 2020 for Blue Water Science Total Proposed Costs Summary Task 1: Water Quality Monitoring - Nine Mile Creek Watershed $13,100 Task 1: Water Quality Monitoring - Riley Purgatory Bluff Creek Watershed $26,200 Task 2: Vegetation Sampling - Point Intercept Survey $4,000 Task 3: Vegetation Sampling - Purgatory Creek Park $1,600 Task 4: Phytoplankton and Zooplankton Sampling $250 Task 5: Report Requirements and Meeting $600 Total $45,750 -4- Exhibit A: 2020 Lake Sampling Program P R O P O S A L To: Leslie A. Stovring, Environmental Coordinator From: Steve McComas, Blue Water Science Date: April 15, 2020 Re: 2020 Lake Sampling Program Proposal for Eden Prairie The sampling program will include the Tasks outlined below. All lake water quality data collected will be entered into the Minnesota Pollution Control Agency’s water quality database. SECTION 1 - SCOPE OF WORK TASK 1-WATER QUALITY MONITORING-NINE MILE CREEK WATERSHED: BIRCH ISLAND AND SMETANA The following samples will be collected every other week from May through end of October for the lakes listed above. Samples will be collected, except for Secchi disc depth, from the surface to bottom of each lake in one-meter increments. Parameters to be analyzed in the field: • Secchi disc • Temperature and dissolved oxygen profiles • Conductivity • pH Parameters to be analyzed by a laboratory: • Total phosphorus (surface, mid-depth, and bottom samples) • Orthophosphate (surface, mid-depth, and bottom samples) • Total dissolved phosphorus (surface, mid-depth, and bottom samples) • Chlorophyll a (surface, mid-depth, and bottom samples) • Ammonium • Nitrate/nitrite • Total Kjeldahl nitrogen • Total Alkalinity • Total Suspended Solids • Chloride • Iron Lab Costs per Lake: $4,800 -1- TASK 1-WATER QUALITY MONITORING-RILEY PURGATORY BLUFF CREEK WATERSHED- McCOY, MITCHELL, ROUND, RED ROCK The following samples will be collected every other week from May through end of October for the lakes listed above. Samples will be collected, except for Secchi disc depth, from the surface to bottom of each lake in one-meter increments. Parameters to be analyzed in the field: • Secchi disc • Temperature and dissolved oxygen profiles • Conductivity • pH Parameters to be analyzed by a laboratory: • Total phosphorus (surface, mid-depth, and bottom samples) • Orthophosphate (surface, mid-depth, and bottom samples) • Total dissolved phosphorus (surface, mid-depth, and bottom samples) • Chlorophyll a (surface, mid-depth, and bottom samples) • Ammonium • Nitrate/nitrite • Total Kjeldahl nitrogen • Total Alkalinity • Total Suspended Solids • Chloride • Iron Total Lab Costs per Lake: $4,800 TASK 2-VEGETATION SAMPLING-POINT INTERCEPT SURVEY-DUCK AND BIRCH ISLAND Blue Water Science will conduct one mid-summer point intercept survey to map the aquatic vegetation within the lake. TASK 3-VEGETATION SAMPLING-PURGATORY CREEK PARK Blue Water Science will conduct 2 visual surveys within the open-water wetland and stormwater ponding area within Purgatory Creek Park to determine the presence and approximate extent of aquatic invasive species such as curlyleaf pondweed and brittle naiad. TASK 4-PHYTOPLANKTON AND ZOOPLANKTON SAMPLING Conduct phytoplankton (to genus) and zooplankton (to species) sampling in Birch Island Lake utilizing a vertical tow. The first sample must be collected in late May or early June and the second collected in August. TASK 5-REPORT AND MEETING REQUIREMENTS Once the analysis is completed a final report will be prepared which summarizes the results for each water-sampling program. The report must include the following information: • Analysis of existing conditions. • Comparison with historical conditions. • Recommendations for future actions. • Copies of all laboratory reports. • Acknowledgement that all water quality results were entered into the MPCA’s database. Blue Water Science anticipates one meeting to discuss the sample protocol and one meeting to provide a discussion of the results with City Staff. One (1) PDF copy of the Final Report should be submitted by March 31, 2021. -2- SECTION 2 - TERMS AND CONDITIONS Quote for 2020: Lake and Pond Water Sampling and Projects 2/Month May - Oct Secchi, Temp, Diss oxygen, Conductivity, pH, TP, OP, Total Dissolved Phosphorus, Chl, NH3, NO3-NO2, TKN, Total Alkalinity, TSS, Chloride, Iron Costs Total Costs Labor For Sampling Lab Costs Report Costs TASK 1. WATER QUALITY MONITORING Nine Mile Creek Watershed Birch Island 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Smetana 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Subtotal $2,200 $9,600 $1,300 $13,100 Riley Purgatory Bluff Creek Watershed McCoy 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Mitchell 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Red Rock 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Round 12 sampling trips $1,100 12 x $400 = $4,800 $650 $6,550 Subtotal $4,400 $19,200 $2,600 $26,200 Total Costs TASK 2. VEGETATION SAMPLING - POINT INTERCEPT SURVEY Duck Lake Mid Summer Point Intercept Plant Survey $1,900 Birch Island Lake Mid Summer Point Intercept Plant Survey $2,100 Subtotal $4,000 Total Costs TASK 3. VEGETATION SAMPLING - PURGATORY CREEK PARK Purgatory Creek Park Two Summer Plant Surveys $800/survey $1,600 Subtotal $1,600 Total Costs TASK 4. PHYTOPLANKTON AND ZOOPLANKTON SAMPLING Birch Island Lake Two algae and 2 zooplankton $250 Subtotal $250 Total Costs TASK 5. REPORT AND MEETING REQUIREMENTS Report preparation included Meetings (2 meetings at $300/meeting)$600 Subtotal $600 -3- Summary of Proposed Costs for 2020 for Blue Water Science Total Proposed Costs Summary Task 1: Water Quality Monitoring - Nine Mile Creek Watershed $13,100 Task 1: Water Quality Monitoring - Riley Purgatory Bluff Creek Watershed $26,200 Task 2: Vegetation Sampling - Point Intercept Survey $4,000 Task 3: Vegetation Sampling - Purgatory Creek Park $1,600 Task 4: Phytoplankton and Zooplankton Sampling $250 Task 5: Report Requirements and Meeting $600 Total $45,750 -4- CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Mary Krause Public Works / Engineering ITEM DESCRIPTION: I.C. 20803 Award Contract for the Kimberly Lane-Chennault Way Sump Pump Collection System Project to Parrott Contracting Inc. ITEM NO.: VIII.G. Requested Action Move to: Award the Contract for the Kimberly Lane-Chennault Way Sump Pump Collection System Project to Parrott Contracting Inc. in the amount of $117,647.00. Synopsis Two quotes were submitted for the project: Parrott Contracting Inc. $117,647.00 Minger Construction Co. $167,863.40 The Engineers Estimate for the project was $182,549.00. Background Information This project consists of the installation of a sump pump collection system and minimal storm sewer within the existing neighborhoods. This project is a result of ongoing sump pump discharge and drainage issues in the neighborhood. Upon completion of this project, a mill and overlay project on both Kimberly Lane and Chennault Way will take place later in 2020. Financial Implications Funding for this project will be through the Pavement Management Fund. Addendum This addendum is provided on the recommendation of the City Attorney to explain the project’s compliance with the Uniform Municipal Contracting Law. The engineer’s good-faith estimate for the project was originally $170,524. Because this estimate was under $175,000, quotes were obtained for the project, rather than competitive sealed bids. After the quotes were received, staff discovered clerical errors in calculating the original estimate. The correctly calculated engineer’s estimate should have been $182,549, which is over the competitive sealed bidding threshold. Because the $170,254 estimate was a good-faith estimate of the cost of the project before the quotes were received, and because both quotes came in well below $175,000, the City Attorney advises that the Council may legally accept the quote from Parrott Contracting and approve the contract. Attachment Contract SHORT FORM CONSTRUCTION CONTRACT THIS AGREEMENT, made and executed this _____ day of __________ 20__, by and between City of Eden Prairie hereinafter referred to as the "CITY", and Parrott Contracting Inc., hereinafter referred to as the "CONTRACTOR", WITNESSETH: CITY AND CONTRACTOR, for the consideration hereinafter stated, agrees as follows: I. CONTRACTOR hereby covenants and agrees to perform and execute all the provisions of the Plans and Specifications prepared by the Public Works Department referred to in Paragraph IV, as provided by the CITY for: I.C. 20803 – 2020 SPCS Projects (Kimberly Lane & Chennault Way) CONTRACTOR further agrees to do everything required by this Agreement and the Contract Document. II. CITY agrees to pay and CONTRACTOR agrees to receive and accept payment in accordance with the prices bid for the unit or lump sum items as set forth in the Proposal Form attached hereto which prices conform to those in the accepted CONTRACTOR'S proposal on file in the office of the City Engineer. The aggregate sum of such prices, based on estimated required quantities is estimated to be $117,647.00. III. Payments to CONTRACTOR by City shall be made as provided in the Contract Documents. IV. The Contract Documents consist of the following component parts: (1) Legal and Procedural Documents a. Proposal Form b. Construction Short Form Agreement (2) Special Conditions (3) Detail Specifications (4) General Conditions (5) Plans (6) Addenda and Supplemental Agreements The Contract Documents are hereby incorporated with this Agreement and are as much a part of this Agreement as if fully set forth herein. This Agreement and the Contract Documents are the Contract. V. CONTRACTOR agrees to fully and satisfactorily complete the work contemplated by this Agreement in accordance with the following schedule: Or in accordance with the Contract Documents. VI. This Agreement shall be executed in two (2) copies. IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands and seals as of the date first above written. In Presence Of: CITY OF EDEN PRAIRIE __________________________________ By ________________________________ Its City Mayor __________________________________ By_______________________________ Its City Manager CONTRACTOR In Presence Of: ____________________________________ __________________________________ By ________________________________ Its __________________________ __________________________________ _______________________________ Its __________________________ CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Mary Krause Public Works / Engineering ITEM DESCRIPTION: I.C. 20803 Award Contract for the Kristie Lane Sump Pump Collection System Project to Kevin Casey LLC ITEM NO.: VIII.H. Requested Action Move to: Award the Contract for the Kristie Lane Sump Pump Collection System Project to Kevin Casey LLC in the amount of $56,726.00. Synopsis A request for quotes was sent out to four contractors for the installation of the sump pump collection system on Kristie Lane. One quote was submitted and the other three declined to submit quotes. Bidder Estimate Kevin Casey LLC $56,726.00 L&R Suburban Landscaping Declined to Quote Odessa II Declined to Quote Lawns R Us Declined to Quote The Engineers Estimate for the project was $86,843.00. Background Information This project consists of the installation of a sump pump collection system within the existing street. This project is a result of ongoing sump pump discharge and drainage issues in the neighborhood. Upon completion of this project, a mill and overlay project on Kristie Lane will take place later in 2020. Financial Implications Funding for this project will be through the Pavement Management Fund. Attachment Contract SHORT FORM CONSTRUCTION CONTRACT THIS AGREEMENT, made and executed this _____ day of __________ 20__, by and between City of Eden Prairie hereinafter referred to as the "CITY", and Kevin Casey LLC, hereinafter referred to as the "CONTRACTOR", WITNESSETH: CITY AND CONTRACTOR, for the consideration hereinafter stated, agrees as follows: I. CONTRACTOR hereby covenants and agrees to perform and execute all the provisions of the Plans and Specifications prepared by the Public Works Department referred to in Paragraph IV, as provided by the CITY for: I.C. 20803 – 2020 SPCS Projects (Kristie Lane) CONTRACTOR further agrees to do everything required by this Agreement and the Contract Document. II. CITY agrees to pay and CONTRACTOR agrees to receive and accept payment in accordance with the prices bid for the unit or lump sum items as set forth in the Proposal Form attached hereto which prices conform to those in the accepted CONTRACTOR'S proposal on file in the office of the City Engineer. The aggregate sum of such prices, based on estimated required quantities is estimated to be $56,726.00. III. Payments to CONTRACTOR by City shall be made as provided in the Contract Documents. IV. The Contract Documents consist of the following component parts: (1) Legal and Procedural Documents a. Proposal Form b. Construction Short Form Agreement (2) Special Conditions (3) Detail Specifications (4) General Conditions (5) Plans (6) Addenda and Supplemental Agreements The Contract Documents are hereby incorporated with this Agreement and are as much a part of this Agreement as if fully set forth herein. This Agreement and the Contract Documents are the Contract. V. CONTRACTOR agrees to fully and satisfactorily complete the work contemplated by this Agreement in accordance with the following schedule: Or in accordance with the Contract Documents. VI. This Agreement shall be executed in two (2) copies. IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands and seals as of the date first above written. In Presence Of: CITY OF EDEN PRAIRIE __________________________________ By ________________________________ Its City Mayor __________________________________ By_______________________________ Its City Manager CONTRACTOR In Presence Of: ____________________________________ __________________________________ By ________________________________ Its __________________________ __________________________________ _______________________________ Its __________________________ CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Patrick Sejkora Engineering / Environmental ITEM DESCRIPTION: I.C. 19829 Approve Groundwater Conservation Grant Funding Agreement with Riley Purgatory Bluff Creek Watershed District ITEM NO.: VIII.I. Requested Action Move to: Approve a Groundwater Conservation Grant Funding Agreement for $12,700.00 with Riley Purgatory Bluff Creek Watershed District to Supplement Metropolitan Council .Clean Water Fund Grant Agreement No. SG-13453 Synopsis Riley-Purgatory-Bluff Creek Watershed District (RPBCWD) has a grant opportunity to promote groundwater conservation in support of the Metropolitan Council’s Clean Water Fund Grant. The City currently is utilizing the $37,300 grant from Metropolitan Council to promote and fund a rebate program for smart irrigation controllers, high efficiency sprinkler heads, and irrigation system audits. The RPBCWD has offered to contribute $12,700 toward the City’s rebate program. The City is responsible for a 25% match under both grant programs. Background Information The City has had a rebate program for smart irrigation controllers to promote water conservation. The grant opportunities from the Metropolitan Council and RPBCWD work to expand and promote the rebate program to allow additional residents and businesses to implement water saving measures. Attachment Grant Funding Agreement CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Carter Schulze Public Works / Engineering ITEM DESCRIPTION: #16-5943 Approve Agreement with Twin Cities and Western Railroad for the Replacement of the Birch Island Road At-Grade Crossing ITEM NO.: VIII.J. Requested Action Move to: Approve Agreement with Twin Cities and Western Railroad for the Replacement of the Birch Island Road At-Grade Crossing Synopsis This agreement outlines the provisions for Twin Cities and Western Railroad to replace the deteriorating railroad crossing at Birch Island Road. Background Information Twin Cities and Western Railroad (TC&W) operate on a rail track which carries rail traffic through Birch Island Road. The City is responsible for Birch Island Road which carries traffic across the TC&W line. The railroad crossing is in poor condition creating a hazard for vehicular traffic and needs to be removed and replaced. TC&W has agreed to replace the railroad crossing. The estimated cost to the City for this work is $25,407.35. The City will reimburse TC&W for these costs upon the completion of the project. Attachment Crossing Agreement OS(C:) TVS TCW 04/29/2020 1 AGREEMENT NO. 2020-1 AGREEMENT BETWEEN THE TWIN CITIES & WESTERN RAILROAD COMPANY AND CITY OF EDEN PRAIRIE FOR REPLACEMENT OF AT-GRADE CROSSING SURFACE AT BIRCH ISLAND ROAD THIS AGREEMENT, is made and entered into by and between the Twin Cities & Western Railroad, a corporation organized under the laws of the State of Minnesota, hereinafter referred to as “Company,” and the City of Eden Prairie, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as “City.” WITNESSETH: WHEREAS, the City and the Company have discussed replacement of an approximately sixty foot at-grade crossing surface on Birch Island Road, and WHEREAS, Birch Island Road is under the jurisdiction of the City for purposes of maintenance and improvements, and WHEREAS, it is the desire of both of the parties to enter into a written Agreement regarding the replacement of said at-grade crossing surface. NOW, THEREFORE, the Company and the City agree as follows: A. This agreement shall apply only to the replacement of the one at-grade crossing surface at Birch Island Road. B. The Company will be the project manager in charge of the surface replacement project. C. The Company will: 1. Prepare and complete construction plans, specifications, and special provisions, as needed; an estimate of construction cost; other tasks required to complete the design of the project, and otherwise provide for the replacement of the railroad crossing surface. 2. Provide the necessary labor, equipment, and material for the removal/disposal of the old crossing surface and for the construction of the new crossing surface. 3. Provide the necessary construction supervision, inspection and reporting services. 4. Communicate with the City Engineer for approval of the construction plans, OS(C:) TVS TCW 04/29/2020 2 specifications and special provisions prior to authorizing work to proceed. 5. Allow inspection by the City’s duly authorized representatives upon reasonable notice. 6. Obtain the written approval of the City for any changes involving work which the City is responsible to pay prior to performing such work. D. The City will: 1. Review and approve the plans for the project prepared by the Company without unreasonable delay. 2. Provide traffic control on Birch Island Road during the surface replacement project. This work includes closing the roadway and detouring vehicular traffic as needed and at times requested by the Company. 3. Cut the existing asphalt road surface and construct permanent asphalt pavement at the at-grade crossing surface. E. The project shall be funded as follows: 1. CONSTRUCTION COSTS: a. The City will pay the expenses for materials to remove and dispose of the old crossing surface and the construction of the new crossing surface. The total costs are currently estimated at $52,837.15. b. In addition to 1.a. the City will pay all expenses for traffic control and the construction of the permanent asphalt roadway pavement and any inspection or engineering services the City may use. c. The Company will pay all other expenses related to the surface replacement project. 2. ENGINEERING COSTS: a. The Company will not be obligated to pay the City for any City staff or other engineering services related to the project. 3. REIMBURSEMENT: a. Upon completion of the project, the Company will bill the City a lump sum amount of $25407.35 for payment for the crossing surface construction material costs as described in section E.1.a. The City will pay the Company within thirty (30) days of receipt of the bill from the Company. OS(C:) TVS TCW 04/29/2020 3 F. City Liability. 1. To the fullest extent permitted by law, the City shall and shall cause all of its contractors to release, indemnify, defend and hold harmless the Company and the Company’s affiliated companies, partners, successors, assigns, legal representatives, officers, directors, shareholders, employees and agents (collectively, “ Company Indemnitees”) for, from and against any and all claims, liabilities, obligations, fines, sanctions, fees, penalties, costs, damages, losses, liens, causes of action, actions, suits, demands, settlements, orders, judgments, expenses (including, without limitation, court costs, attorneys’ fees and costs of investigation, expert fees, expenses of trial, arbitration or appeal), and cleanup, repair, response actions, removal, restoration, replacement, and remediation and governmental oversight costs, environmental or otherwise, of any nature, kind or description of any person or entity (collectively “Liabilities”) directly or indirectly arising out of, resulting from or related to (in whole or in part): a. The City’s and its contractors’ occupation and use of the crossing surface in connection with the City’s replacement of the asphalt surface as contemplated by this Agreement; b. The environmental condition and status of the Premises caused by or contributed to by the City or its contractors in performing the City’s obligations under this Agreement; or c. Any act or omission of the City or the City’s officers, agents, invitees, employees, or contractors, or anyone directly or indirectly employed by any of them, or anyone they control or exercise control over in the execution or performance of the City’s obligations under Agreement; 2. It is understood and agreed that any and all employees of the City and all other persons employed by the City in the performance of the provisions of services hereunder shall not be considered employees of the Company and that any and all claims that may or might arise under the Worker’s Compensation Act of the State of Minnesota, the Federal Employer’s Liability Act, the Safety Appliance Act, the Boiler Inspection Act, the Occupational Health and Safety Act, the Resource Conservation and Recovery Act, and any similar state or federal statute, on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said City employees while so engaged in the performance of any of the provisions of services hereunder will not be the obligation or responsibility of the Company. 3. Unless otherwise specifically set forth in any paragraph hereof, or elsewhere in this Agreement, the City shall not be responsible for, nor release, indemnify, defend or OS(C:) TVS TCW 04/29/2020 4 hold harmless any Company Indemnitee from Liabilities to the extent those Liabilities arose out of the Indemnitee’s negligent, reckless, intentional, or willful misconduct. 4. Upon written notice from the Company, the City agrees to assume the defense of any lawsuit or other proceeding brought against any Company Indemnitee by any entity, relation to any matter covered by this Agreement for which the City has an obligation to assume liability for and/or such defense, including, but not limited to, attorneys’ fees, investigators’ fees, litigation and appeal expenses, settlement payments, and amounts paid in satisfaction of judgments. 5. All personal property owned or controlled by the City or its contractors, including, but not limited to, fixtures, equipment, or related materials upon the crossing surface will be at the risk of the City or its contractors only, and no Company Indemnitee will be liable for any damage thereto or theft thereof. G. Company’s Liability. 1. To the fullest extent permitted by law, the Company shall and shall cause all of its contractors to release, indemnify, defend and hold harmless the City and the City’s successors, assigns, legal representatives, elected officials, employees and agents (collectively, “City Indemnitees”) for, from and against any and all Liabilities (as that term is defined in Section F.1 of this Agreement) directly or indirectly arising out of, resulting from or related to (in whole or in part) any act or omission of the Company or the Company’s officers, agents, invitees, employees, or contractors, or anyone directly or indirectly employed by any of them, or anyone they control or exercise control over, in the Company’s construction of the new crossing surface or the execution or performance of the Company’s obligations under Agreement. 2. It is understood and agreed that any and all employees of the Company and all other personnel employed by the Company in the performance of services hereunder shall not be considered employees of the City and that any and all claims that may or might arise on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said Company employees while so engaged in the performance of any of the services hereunder shall in no way be the obligation or responsibility of the City. 3. Unless otherwise specifically set forth in any paragraph hereof, or elsewhere in this Agreement, the Company shall not be responsible for, nor release, indemnify, defend or hold harmless any City Indemnitee from Liabilities to the extent those Liabilities arose out of the Indemnitee’s negligent, reckless, intentional, or willful misconduct. OS(C:) TVS TCW 04/29/2020 5 4. Upon written notice from the City, the Company agrees to assume the defense of any lawsuit or other proceeding brought against any City Indemnitee by any entity, relation to any matter covered by this Agreement for which the Company has an obligation to assume liability for and/or such defense, including, but not limited to, attorneys’ fees, investigators’ fees, litigation and appeal expenses, settlement payments, and amounts paid in satisfaction of judgments. 5. All personal property owned or controlled by the Company or its contractors, including, but not limited to, fixtures, equipment, or related materials upon the crossing surface will be at the risk of the Company or its contractors only, and no City Indemnitee will be liable for any damage thereto or theft thereof. H. Insurance. The City, before commencing any work and at all times until its work is completed, must provide and maintain insurance policies as follows: 1. Liability insurance, including broad form contractual liability coverage, with a combined single limit of at least $2,500,000 each occurrence and an aggregate limit of at least $5,000,000 or such larger limit (including excess or umbrella insurance) as is carried by City. This insurance must include coverage for public liability, bodily injury and property damage, personal injury and advertising injury, fire legal liability, and products and completed operations. The policy or policies must be endorsed as follows: (1) to add the Company as an additional insured; (2) to waive the insurer(s)’s subrogation rights against the Company; (3) to provide for separation of insured parties (severability of interests or “cross liability” provision providing that the naming of the Company as an insured or a waiver of subrogation will not preclude a covered entity from bringing a claim or claims against another covered entity as if it had not been so named and/or subrogation claims waived); (4) to be primary and non-contributing with respect to insurance carried by the Company; (5) to amend the definition of insured contract to remove any exclusion or other limitation for any work being done within a specified distance of a railroad, railroad tracks, or railroad property; (6) to remove exclusions limiting coverage for explosion, collapse, or underground hazards; and (7) to provide that any worker’s compensation and employer’s liability exclusion does not apply to the Company’s payments related to the Federal Employer’s Liability Act and that payments by the Company under any wage continuation program are not to be deemed to be payments made or obligations assumed under any worker’s compensation law or disability benefits or unemployment compensation law or similar law. 2. Business automobile (“Business Auto”) insurance with a combined single limit of at least $2,000,000 per occurrence, including coverage for bodily injury and property damage and any and all vehicles owned, used, or hired. This policy shall be endorsed: (1) to waive the insurer’s subrogation rights against the Company; (2) to name the Company as an additional insured; (3) to provide for separation of OS(C:) TVS TCW 04/29/2020 6 insured parties; and (4) to be primary and non-contributing with respect to insurance carried by the Company. 3. Workers’ compensation and employers' liability (“Workers Comp”) insurance. This policy shall be endorsed to waive the insurer’s subrogation rights against the Company. 4. Railroad Protective Liability Insurance. This insurance shall name only the Company as the Insured with coverage of at least $1,000,000 per occurrence and $2,000,000 in the aggregate. The coverage obtained under this policy shall only be required during the initial installation and/or construction of the crossing surface. THE CONSTRUCTION OF THE CROSSING SURFACE SHALL BE COMPLETE WITHIN EIGHTEEN (18) MONTHS OF THE EFFECTIVE DATE AND WHILE THE RAILROAD PROTECTIVE POLICY IS IN FORCE. If further work, repairs, or maintenance of the crossing surface is needed at a later date, an additional Railroad Protective Liability Insurance Policy shall be required. The policy shall be issued on a standard ISO form CG 00 35 10 93 and include the following: Endorsed to include the Pollution Exclusion Amendment (ISO form CG 28 31 10 93) Endorsed to include the Limited Seepage and Pollution Endorsement. Endorsed to include Evacuation Expense Coverage Endorsement. No other endorsements restricting coverage may be added The original policy must be provided to the Company prior to performing any work or services under this Agreement. 5. Other insurance requirements: a. Prior to commencing any construction, operations, or work, the City shall furnish to the Company an acceptable certificate(s) of insurance including an original signature of the authorized representative evidencing the required coverage, endorsements, and amendments. Acceptance of a certificate that does not comply with this section shall not operate as a waiver of the City’s obligations hereunder. Failure to provide certificates required by this Agreement shall entitle, but not require, the Company to terminate this Agreement immediately. Upon request, the City shall furnish complete copies of the insurance policies to the Company. b. If any portion of the construction or work or operation is contracted by the City, the City must require that the contractor(s) provide and maintain insurance coverages as described above, naming the Company as an additional insured. OS(C:) TVS TCW 04/29/2020 7 c. The City agrees to waive its right of recovery against the Company for all Liabilities for which the City or its contractors have agreed to be responsible. In addition, the City’s insurers, through policy endorsement, must waive their right of subrogation against the Company for all claims and suits. The certificate of insurance must reflect waiver of subrogation endorsement. The City further waives its right of recovery, and its insurers also waive their right of subrogation against the Company for loss of owned or leased property or property under the City’s care, custody, or control arising out of work performed under this Agreement. d. All insurance policies required by this Agreement shall be written by a reputable insurance company acceptable to the Company with a current Best’s Guide Rating of A- and Class VII or better, and authorized to do business in the state(s) in which the service is to be provided, or in lieu thereof by the League of Minnesota Cities Insurance Trust. e. The fact that insurance (including, without limitation, self-insurance) is obtained by the City shall not be deemed to release or diminish the liability of the City under this Agreement including, without limitation, liability under the indemnity provisions of this Agreement. Damages recoverable by the Company shall not be limited by the amount of the required insurance coverage. f. If any portion of the operation is to be subcontracted by the City, the City shall require that its subcontractors provide and maintain insurance coverages as set forth herein, naming the Company as an additional insured, and shall require that the subcontractor to release, defend, and indemnify the Company to the same extent and under the same terms conditions as the City is required to release, defend and indemnify the Company. g. If the City maintains broader coverage and/or higher limits than the minimums shown above, the Company shall be entitled to the broader coverage and/or the higher limits maintained by the City. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Company. h. If any of the insurance required is on a “claims made” basis, the City agrees to maintain coverage in force for a minimum of three (3) years after expiration, cancellation, or termination of this agreement. I. Pursuant to Minnesota Statutes §16C.05, Subd. 5, the Company agrees that its records, documents, and accounting procedures and practices that are relevant to this Agreement are subject to examination during normal business hours by the City OS(C:) TVS TCW 04/29/2020 8 and either the legislative auditor or the state auditor, as appropriate, for a minimum of six years after completion of the project. J. During the performance of this Agreement, the Company and the City agree that no person shall, on the grounds of race, color, religion, age, sex, disability, marital status, public assistance status, criminal record, creed or national origin be excluded from full employment right in, participation Ii, be denied the benefits of or be otherwise subjected to discrimination prohibited by applicable Federal and State laws against discrimination. K. Any modification of this Agreement must be in writing and signed by the parties. L. The crossing surface replacement project will be scheduled for construction in the summer of 2021, the dates to be mutually agreed to by the Company and the City. M. Notice. Required notices to the Company shall be in writing, and shall be either hand-delivered to the Company, its employees or agents, or mailed to the Company by certified mail at the following address: Twin Cities & Western Railroad Company 2925 - 12th Street East Glencoe, MN 55336 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. N. The parties shall comply with the Minnesota Data Practices Act the “Act”) in particular Minnesota Statutes Section 13.05, Subd 11. Pursuant to Section 13.05, Subd. 11 (b) the Act does not create a duty on the part of the Company to provide access to public data if the public data is available from the City, except as required by the terms of this contract. The City pursuant to law assumes the responsibility to respond to all data practices requests for public data which are available from the City. The City acknowledges and agrees that by entering into this Agreement, the Company is not waiving and will not waive any rights it may have under the Act or under other applicable law to refuse to produce data or to limit its production and the City will respect the Company’s instructions with respect to any request to OS(C:) TVS TCW 04/29/2020 9 release such data, to the extent legally permitted, in order to protect the Company’s confidential, proprietary, trade secret, and security information. O. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. P. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. IN TESTIMONY WHEREOF, The parties hereto have caused these presents to be executed. TWIN CITIES & WESTERN RAILROAD Company President Date: CITY OF EDEN PRAIRIE, MINNESOTA _________________________________ Mayor Date: ATTEST: __________________________________ Company Officer Date: __________________________________ City Manager Date: CITY COUNCIL AGENDA SECTION: Consent Calendar DATE: May 5, 2020 DEPARTMENT/DIVISION: Matt Bourne, Parks and Natural Resources Manager ITEM DESCRIPTION: Accept Bids and Award Contract to Native Resource Preservation, LLC. ITEM NO.: VIII.K. Requested Action Move to: Accept Bids and Award Contract to Native Resources Preservation LLC in the amount not to exceed of $22,868.00 for the maintenance of the native plant conversion areas. Synopsis For the past 5 years, the City has worked with contractors to convert areas of City property that were being maintained as mowed turf into native planting areas. We have also included new native planting areas into many of our recent park improvement projects. Many of the areas included in this contract are areas that were converted a number of years ago and the initial 3 year contract has expired. Other areas are part of conservation areas or City owned outlots that have been maintained to control invasive species. The City received bids from four different contractors and has done similar work with NRP. Background As part of the Sustainable Eden Prairie initiative, City staff has continued to identify areas of City property that are being maintained as mowed turf that could be converted to native prairie planting areas. These areas primarily serve little purpose as mowed turf or are in locations that can easily be used as educations plots for native plantings. Because these types of conversions can be labor intensive for multiple years and take some time to mature, the City will in most cases enter into a contract to maintain the area for the first three years after the initial conversion to ensure the project is successful. After that initial planting or three year contract, staff is able to conduct some of the maintenance tasks required to maintain these areas, while other tasks are handle more efficiently by a contractor. Attachment Bid Form and Agreement with Native Resources Preservation LLC Page 1 of 39 City of Eden Prairie Native Plantings Maintenance Bid Request - 2020 Bid Submission: Bids shall be submitted electronically to lstufft@edenprairie.org before April 24, 2020 by 9am to be considered. Pre-bid Site Meeting: Available upon Request prior to April 17, 2020. Project Manager: Lauren Stufft, Forestry & Natural Resources Specialist Ph: 952-949-8463 lstufft@edenprairie.org 15150 Technology Drive Eden Prairie, MN 55344 Page 2 of 39 City of Eden Prairie Requirements for Contract Services Preliminary Statement The City has adopted a policy regarding the selection and hiring of contractors to provide a variety of services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of services by Contractor for the above ‘City of Eden Prairie Native Plantings Maintenance Bid Request – 2020’ hereinafter referred to as the "Work". The City and Contractor agree as follows: 1. Scope of Work. The Contractor agrees to provide, perform and complete all the provisions of the Work in accordance with attached Exhibit A. Any general or specific conditions, terms, agreements, consultant or industry proposal, or contract terms attached to or a part of Exhibit A are declined in full and, accordingly, are deleted and shall not be in effect in any manner. 2. Effective Date and Term of Agreement. This Agreement shall become effective as of the date both the City and Contractor sign the contract. The Agreement shall continue for one (1) year with the option of renewal from year to year except that this Agreement may be terminated at the end of any one (1) year period with sixty (60) days prior written notice from either party. 3. Obligations of Contractor. Contractor shall conform to the following obligations: a. Contractor shall provide the materials and services as set forth in Exhibit A. b. Contractor’s personnel must be neat appearing, wear a uniform and badge that clearly identifies them as a service contractor, and abide by City’s no smoking policies. c. Contractor must honor the City’s request to reassign an employee for cause. Cause may include performance below acceptable standards or failure to present the necessary image or attitude, in the judgment of the owner, to present a first class operation. 4. City’s Obligations. City will do or provide to Contractor the following: a. Provide access to City properties as appropriate. 5. Compensation for Services. City agrees to pay the Contractor as listed on ‘‘City of Eden Prairie Native Plantings Maintenance Bid Request – 2020’ as full and complete payment for the labor, materials and services rendered pursuant to this Agreement and as described in Exhibit A. a. Any changes in the scope of the work which may result in an increase to the compensation due to the Contractor shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. b. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 6. Method of Payment. a. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed under this Agreement. Invoices submitted shall be paid in the same manner as other claims made to the City. b. Claims. To receive any payment on this Agreement, the invoice or bill must include the following signed and dated statement: “I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid.” Page 3 of 39 c. No fuel surcharges or surcharges of any kind will be accepted nor will they be paid. 7. Project Manager. The Contractor shall designated a Project Manager and notify the City in writing of the identity of the Project Manager before starting work on the Project. The Project Manager shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Contractor may not remove or replace the Project Manager without the approval of the City. 8. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Contractor's breach of this standard of care. Contractor shall put forth reasonable efforts to complete its duties in a timely manner. Contractor shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Agreement. Contractor shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 9. Insurance. a. General Liability. Prior to starting the Work, Contractor shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Contractor or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. b. Contractor shall procure and maintain the following minimum insurance coverages and limits of liability for the Work: Worker’s Compensation Statutory Limits Employer’s Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Commercial General $1,000,000 property damage and bodily Liability injury per occurrence $2,000,000 general aggregate $2,000,000 Products – Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles.) Umbrella or Excess Liability $1,000,000 c. Commercial General Liability. The Commercial General Liability Policy shall be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, Page 4 of 39 and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There shall be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage or work performed by subcontractors. d. Contractor shall maintain “stop gap” coverage if Contractor obtains Workers’ Compensation coverage from any state fund if Employer’s liability coverage is not available. e. All policies, except the Worker’s Compensation Policy, shall name the “City of Eden Prairie” as an additional insured. f. All policies, except the Worker’s Compensation Policy, Automobile Policy, and Professional Liability Policy, shall name the “City of Eden Prairie” as an additional insured including products and completed operations. g. All polices shall contain a waiver of subrogation in favor of the City. h. All General Liability policies, Automobile Liability policies, and Umbrella policies shall contain a waiver of subrogation in favor of the City. i. All polices, except the Worker’s Compensation Policy, shall insure the defense and indemnity obligations assumed by Contractor under this Agreement. j. Contractor agrees to maintain all coverage required herein throughout the term of the Agreement and for a minimum of two (2) years following City’s written acceptance of the Work. k. It shall be Contractor’s responsibility to pay any retention or deductible for the coverages required herein. l. All policies shall contain a provision or endorsement that coverages afforded thereunder shall not be cancelled or non-renewed or restrictive modifications added, without thirty (30) days’ prior notice to the City, except that if the cancellation or non-renewal is due to non-payment, the coverages may not be terminated or non-renewed without ten (10) days’ prior notice to the City. m. Contractor shall maintain in effect all insurance coverages required under this Paragraph at Contractor’s sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. n. A copy of the Contractor’s Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Contractor’s Work. Upon request a copy of the Contractor’s insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Contractor has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Contractor of any deficiencies in such documents and receipt thereof shall not relieve Contractor from, nor be deemed a waiver of, City’s right to enforce the terms of Contractor’s obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. o. Effect of Contractor’s Failure to Provide Insurance. If Contractor fails to provide the specified insurance, then Contractor will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Contractor, its subcontractors, agents, employees or delegates. Contractor agrees that this indemnity shall be construed and applied in favor of indemnification. Contractor also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. Page 5 of 39 If a claim arises within the scope of the stated indemnity, the City may require Contractor to: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii. Furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. Contractor will take the action required by the City within fifteen (15) days of receiving notice from the City. 10. Indemnification. Contractor will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Contractor, its agents, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 11. Warranty. The Contractor expressly warrants and guarantees to the City that all Work performed and all materials furnished shall be in accord with the Agreement and shall be free from defects in materials, workmanship, and operation which appear within a period of one year, or within such longer period as may be prescribed by law or in the terms of the Agreement, from the date of City’s written acceptance of the Work. The City’s rights under the Contractor’s warranty are not the City’s exclusive remedy. The City shall have all other remedies available under this Agreement, at law or in equity. Should any defects develop in the materials, workmanship or operation of the system within the specified period, upon notice from the City, the Contractor agrees, within ten (10) calendar days after receiving written notice and without expense to the City, to repair, replace and in general to perform all necessary corrective Work with regard to the defective or nonconforming Work or materials to the satisfaction of the City. THE FOREGOING SHALL NOT IN ANY MANNER LIMIT THE CITY’S REMEDY OR THE CONTRACTOR’S LIABILITY TO THOSE DEFECTS APPEARING WITHIN THE WARRANTY PERIOD. The Contractor agrees to perform the Work in a manner and at a time so as to minimize any damages sustained by the City and so as to not interfere with or in any way disrupt the operation of the City or the public. The corrective Work referred to above shall include without limitation, (a) the cost of removing the defective or nonconforming Work and materials from the site, (b) the cost of correcting all Work of other Contractors destroyed or damaged by defective or nonconforming Work and materials including the cost of removal of such damaged Work and materials form the site, and (c) the cost of correcting all damages to Work of other Contractors caused by the removal of the defective or nonconforming Work or materials. The Contractor shall post bonds to secure the warranties. 12. Termination. a. This Agreement may be terminated at any time by either party for breach or non-performance of any provision of this Agreement in accordance with the following. The party (“notifying party”) who desires to terminate this Agreement for breach or non-performance of the other party (“notified party”) shall give the notified party notice in writing of the notifying party’s desire to terminate this Agreement describing the breach or non-performance of this Agreement entitling it to do so. The notified party shall have five (5) days from the date of such notice to cure the breach or non-performance. Upon failure of the notified party to do so, this Agreement shall automatically terminate. b. Upon the termination of this Agreement, whether by expiration of the original or any extended term or terms hereof, or for any other reason, Contractor shall have the right, within a reasonable time after such termination to remove from City’s premises any and all of Contractor’s equipment and other property. Except for liability resulting from acts or omissions of a party, arising, taken or omitted prior Page 6 of 39 to such termination, the rights and obligations of each party resulting from this Agreement shall cease upon such termination. Any prior liability of a party shall survive termination of this Agreement. c. In the event of dissolution, termination of existence, insolvency, appointment of a receiver, assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency law, or the service of any warrant, attachment, levy or similar process involving Contractor, City may, at its option in addition to any other remedy to which City may be entitled, immediately terminate this Agreement by notice to Contractor, in which event, this Agreement shall terminate on the notice becoming effective. 13. Independent Contractor. Contractor is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Contractor and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Contractor an employee of the City. 14. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. GENERAL TERMS AND CONDITIONS 15. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 16. Compliance with Laws and Regulations. In providing services hereunder, the Contractor shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 17. Conflicts. No salaried officer or employee of the City and no member of the Council of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. 19. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 20. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one (1) year thereafter, without prior written consent of the former employer in each case. Page 7 of 39 21. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 22. Entire Agreement, Construction, Application and Interpretation. This Agreement is in furtherance of the City’s public purpose mission and shall be construed, interpreted, and applied pursuant to and in conformance with the City's public purpose mission. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24. Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicants for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Contractor shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 25. Notice. Any notice required or permitted to be given by a party upon the other is given in accordance with this Agreement if it is directed to either party by delivering it personally to an officer of the party, or if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid, or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed to the address listed on page 1 hereof. Notices shall be deemed effective on the earlier of the date of receipt or the date of mailing or deposit as aforesaid, provided, however, that if notice is given by mail or deposit, that the time for response to any notice by the other party shall commence to run one business day after any such mailing or deposit. A party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 26. Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 27. Services Not Provided For. No claim for services furnished by the Contractor not specifically provided for herein shall be honored by the City. 28. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 29. Statutory Provisions. a. Audit Disclosure. The books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. Page 8 of 39 b. Data Practices. Any reports, information, or data in any form given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated by Contractor in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Contractor shall comply with those requirements as if it were a government entity. All subcontracts entered into by Contractor in relation to this Agreement shall contain similar Data Practices Act compliance language. 30. Waiver. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. Executed as of the day and year both the City and Contractor signed this document. Page 9 of 39 Exhibit A 1) SCOPE OF WORK 1. City of Eden Prairie proposes to hire a vegetation management contractor to manage invasive and undesirable vegetation throughout pollinator/native planting sites. There will be a total of 25 sites. Locations and maps are located below in Exhibit B. Each site will need a minimum of three (3) site visits per year where the Contractor will apply herbicide and/or mow as needed. Five of these sites are scheduled to be burned in the fall of 2020. 2. Undesirable Species: The objective for all sites is to reduce/eliminate invasive and undesirable herbaceous and woody plants in order to encourage plant diversity onsite for pollinator and wildlife habitat. Specifically, the objective is to decrease the prevalence of all species listed on MN Noxious Weeds List (Eradicate, Control, Restricted, and Specially Regulated) and species listed on the MN DNR Invasive Terrestrial Plants list. In addition to the species found on these lists, the following species will also be controlled: Common Name Common Name Boxelder Musk thistle Silver maple Orchard grass Autumn olive Queen Anne’s lace Winged euonymus Barnyard grass Green ash Quack grass Showy fly honeysuckle Dame’s rocket Morrow’s honeysuckle Common toadflax (Butter & eggs) European fly honeysuckle Alfalfa White mulberry Timothy Grass White poplar, European poplar Common Reed Grass, non-native subspecies Aspen Kentucky bluegrass Sumac Curly dock Gooseberry/currant Soapwort (Bouncing Bet) Raspberry/blackberry Foxtail grasses European mountain-ash Bittersweet nightshade American elm Japanese hedge parsley Prickly ash Red clover Common burdock Mullein 2) SPECIFICATIONS - GENERAL 3. Before beginning any work, The Contractor is required to send the City a management plan for each site indicating what species are of issue at the site, and what management strategies will be employed for the 2020 growing season. If at some point during this contract, the Contractor believes that a site is not progressing as expected and that a different management strategy should be utilized moving forward, then the Contractor must contact the City and seek approval of that change prior to doing any non-approved work. Page 10 of 39 4. Each management activity (spot spray, spot mowing, broadcast spray, and flail mowing) will have an hourly cost associated with that management for all sites. The Contractor needs to build into the hourly rate their costs for labor, materials, equipment, and mobilization. The actual starting and ending times, target plant(s), total billable hours by management activity, number of staff and site name shall accompany all invoices. The Contractor must have the capabilities to track and provide the above information to the City. Performance Standards must be met before payment will be issued. 5. Manage all Undesirable Species as defined in Exhibit A Scope of Work 2. Species shall be managed by the Contractor such that seedset is reduced or eliminated and the ability of the plant to compete with desirable vegetation is greatly reduced. 6. Contractor must manage each of the sites in this contract a minimum of 3 times per growing season to apply herbicide and/or mow Undesirable Species. 7. Contractor will notify the City’s Project Manager at least 24-hours in advance of when they plan to be on-site. The Contractor must also contact the City’s Project Manager within the first 48 hours of work occurring on this project to confirm that work went as intended. 8. Contractor shall provide a certificate of liability insurance, listing the City of Eden Prairie as a Certificate Holder covering all activities within the scope of the contract performed by the Contractor. The policy must have a single limit liability coverage minimum of $1,000,000. Contractor must provide a certificate of workers compensation coverage prior to starting work. All costs for fuel, parts, equipment, and labor are the contractor’s responsibility. 9. Work may only be performed from 7AM-7PM, Monday through Friday, unless prior approval is given by the City’s Project Manager. Work may not occur on holidays recognized by the City of Eden Prairie. 10. For all tasks, follow best management practices to minimize negative impacts including but not limited to: soil compaction, rutting, and other soil disturbances; herbicide drift and non-target impacts; disturbance to nesting birds and other wildlife. Any rutting of soils or damage to land must be mitigated before payment will be granted. 11. Vehicles are not allowed on steep slopes (greater than 40% grade). 12. Care should be taken to minimize negative impacts to existing desirable plants using selective herbicides and seasonal timing for spraying/mowing. 13. Any machinery/equipment used on this contract must be thoroughly cleaned prior to entering a site to prevent bringing in undesirable seeds. 14. No portion of the work on this contract may be sub-contracted or performed by another contractor other than the contractor listed in this agreement, unless approved by the City. 15. Failure to abide by any of these specifications could result in nonpayment for services or immediate termination of this contract, as decided by the City. Page 11 of 39 2. SPEFICIATIONS – HERBICIDE 1. Herbicide applicators must be Minnesota Department of Agriculture Commercial certified pesticide applicators. Herbicide application must follow industry standards for temperature and weather conditions, according to label directions and the State of MN Commercial Pesticide Applicator Manual. Label directions must be followed; active ingredient must be of sufficient percentage to effectively kill the target weeds. Herbicide application must follow label instructions and recommendations, and applicator must follow all industry safety standards. 2. Avoid herbicide application on windy days and ensure a rain-free period of at least 3 hours after application. 3. Cut and treat or basal bark spray target tree species under 4” DBH (diameter at breast height). This must occur at first site visit. Wood can be left onsite where it falls but should lay flat on the ground. 4. Aquatic formula is required when applying within 100 feet of a wetland. Agri-Dex (Helena) is the only surfactant to be added to herbicides mixes applied on or near water. 5. Herbicide should be applied when plants are not dormant. This is typically between April and November but varies year to year. 6. Use herbicide dye with herbicide so the City can see what was treated. 7. Herbicide applicators must be able to accurately identify all Undesirable Species listed in this contract. 3. SPECIFICATIONS – MOWING 1. Spot mowing will be used to control patches of certain invasive and noxious vegetation. The City recommends the use of hand held weed trimmers or hand pulling; consult with the City before using any other type of equipment. 2. When flail mowing a site, vegetation shall be cut to a height of 4-6” on sites planted in 2020. Vegetation shall be cut to a height of 12” on sites planted before 2020. 4. SPECIFICATIONS – PRESCRIBED BURNING 1. Prescribed burns are to be performed in fall of 2020. Burns will be priced per site to complete the entire burn. Burn must be timed/performed to ensure hottest fire to kill/injure existing woody plants and burn other existing plant material off. 2. Contractor must obtain permits and variances from Eden Prairie Fire Department and MN DNR for all burns and must abide by all rules and regulations from these entities, including contacting dispatch and the DNR as directed. 3. Contractor is responsible for protecting all items not in the burn permit, including in part: all infrastructure, utilities, desirable vegetation, and private property. The Contractor shall be liable Page 12 of 39 for remedying damage due to prescribed fire. The contractor shall mop-up all burned material. There shall be no burning/smoking material when contractor leaves site. 4. The City will install burn breaks, unless otherwise noted. 5. A minimum of one week notice to City staff is required prior to burns taking place. Notifications to residents will be handled by the City prior to burns. 6. Conduct the controlled burn on a day(s) with appropriate wind speeds/direction, humidity, and temperatures. Appropriate wind shall be that which impacts the least amount of residents. Avoid winds that will heavily smoke neighbors or roads. 7. Crews shall not be smaller than two staff and burn bosses shall be on site the entire time of the controlled burn. Burn boss must be trained (S130-S190). The Burn Boss will remain onsite for the entire duration of the burn. PERFORMANCE STANDARDS Management Task Payment Schedule Performance Standards Corrective Measures Prescribed Burning Full payment upon completion and achievement of performance standard. Within burn unit(s), a minimum of 85% of the fine fuels with appropriate height, connectivity, and moisture have burned. Contractor will burn missed portions of site or a price decrease will be negotiated between the Contractor and the City. Herbicide Application Full payment upon completion and achievement of performance standard. 95% of Undesirable Species have been treated and there is visual confirmation of treatment by City Project Manager. All specifications in this contract have been met. All targeted tree species under 4” DBH have been cut and treated after first site visit. Contractor must send crew out to treat missed undesirable species within three weeks after initial application. Contractor will not be paid for additional hours for re- treatment within this time period. After re-inspection and confirmation of completeness by the City, payment will be released for initial application. Mowing Full payment upon completion and achievement of performance standard. 95% of the Undesirable Species have been cut down with cut vegetation dispersed to avoid clumping and smothering of new growth. All specifications in the contract have been met. If mowing results in any clumping, smothering of new growth, or if ruts are formed, Contractor will CEASE activity until conditions improve. If the City deems it necessary, the Contractor will remove thatch from mowed areas and/or repair ruts and seed damaged area prior to the release of payment. Contractor must send a crew out to re-mow site if site was not mowed to the specified height within a 3 week time period. Contractor will not be paid for additional hours for re-mowing within this time period. After re-inspection and confirmation of completeness by the City, payment will be released for the initial mowing. IMPORTANT NOTE: Any performance standard(s) not met, as determined by the City, shall require correction by Contractor. Method of correction will be discussed with and approved by the City in writing prior to implementation. Corrections shall be implemented by Contractor at Contractor’s expense until all performance standards are met. Page 13 of 39 OFFICIAL BID FORM *All site maps & site descriptions can be found in Exhibit B* Item Hourly Cost Weight Estimated Hours Hourly Cost for Spot Herbicide Application $ 40% 54 Hourly cost for Spot Mowing Application $ 40% 54 Hourly Cost for Broadcast Herbicide Application $ 10% 10 Hourly Cost for Whole Site Flail Mowing $ 10% 10 Lump Sum Weighted Hourly Cost $ 128 Item Cost Perform RX Burn at Cedar Hills Park in Fall 2020 $ Perform RX Burn at Riley Lake Park (Pond in S Lot) in Fall 2020 $ perform RX burn at Riley Lake Park (Berm E of S Lot – South Side) in Fall 2020 $ perform RX burn at Round Lake Park (Pond NW of Northern Parking Lot) in Fall 2020 $ Contract to Not Exceed $ *All of the costs above in orange must be completed by the Contractor in order for the bid to be valid* **Contract to Not Exceed is calculated using the following equation: Not Exceed Amount = (Lump Sum Weighted Hourly Cost * 128) + cost of prescribed burns Contractor Contact Information Company Name: Primary Contact: Company Email: Company Phone #: *Need to sign on next page and return entire document to complete bid* i. The contract will be awarded based on the lowest lump sum weighted hourly cost. The lump sum hourly cost should be calculated using the following equation: Lump Sum Weighted Hourly Cost = (Hourly Cost for Spot Herbicide Treatment x 0.4) + (Hourly Cost for Broadcast Herbicide Application x 0.1) + (Hourly Cost for Spot Mowing x 0.4) + (Hourly Cost for Whole site Flail Mowing *0.1) 3) COMMENCEMENT OF WORK, COMPLETION OF WORK, AND INVOICING i. All work may commence at the time the Contractor receives a signed bid form the City. All work shall be completed by December 1, 2020. 1000 1000 1250 Native Resource Preservation LLC Josh Bobst (515)-974-7619josh.bobst@nrp.eco 1250 115143.50 22,868 160140 120 Page 14 of 39 ii. The actual starting and ending times, target plant(s), total billable hours by management type, number of staff, and site name shall accompany all invoices. A copy of the record of all pesticide/herbicide applications shall be submitted to the City. Submitting records with invoices is acceptable. iii. Invoicing for completed work shall not be submitted more frequently than on a monthly basis. Fire Station #2, the Smith House, Wetland 12-24-D and Wetland 30-12-A should be on a separate invoice from all other sites. iv. Email, Mail, or deliver invoices to: Lauren Stufft Attn: Forestry Division City of Eden Prairie Parks and Natural Resources 15150 Technology Dr., Eden Prairie, MN 55344 -Or- lstufft@edenprairie.org v. The undersigned, after having personally examined the plans, specifications, for the proposed work, hereby proposes to furnish all labor, materials, equipment and service necessary for the work outlined in this contract. vi. The undersigned further agrees to fully complete all such work and to maintain the entire work in a proper and workman like manner until approved and accepted by the City’s Project Manager in accordance with this contract. vii. The undersigned further proposes to comply with all legal requirements of contractors on public property. viii. It is hereby agreed that the City of Eden Prairie has the right to reject this proposal or to award the work to the undersigned at the prices stipulated. The City of Eden Prairie also reserves the right to increase or decrease the quantity of work as indicated in the original proposal at any time. By signing below the contractor agrees to meet all requirements listed as conditions and specifications of this document, along with the ‘City of Eden Prairie Requirements for Contract Services’ found below. If the city accepts the proposed bid, a city representative will sign below and return to the company, making this a formal contract. Contractor signs at time of bid. _____________________________________________ Legal Name of Company _____________________________________________ Legal Address of Company By_______________________________ _________________________ Authorized Company Representative Date City fills out after accepting bid. Authorized By_________________________________________ _______________________ City of Eden Prairie Representative Date Contractor has the winning bid for this contract and can move forward with work as soon as a copy signed by the city is received. Native Resource Preservation LLC 260 Wentworth Ave E, Suite 155 Josh Bobst 4/23/2020 Type text here Page 15 of 39 Exhibit B: SITE MAPS & DESCRIPTIONS Site Notes: 1.5 acres seeded in fall of 2016. Under conversion contract for 3 years. Spot sprayed twice in 2019 (6/2/209 and 8/7/2019). Page 16 of 39 Site Notes: 0.4 acres seeded in spring of 2016 with a short & dry grass and forbes mix. Under a conversion contract for 3 years. Burned in spring 2019. Spot sprayed on 5/23/19 and 8/5/2019. Page 17 of 39 Site Notes: 0.25 acres seeded in spring of 2008. Burned in spring 2019. Spot sprayed on 5/23/19 and 8/13/2019. Page 18 of 39 Site Notes: 0.25 acres. Seeding date is unknown, but estimated to be over 10 years ago. Burned in spring 2019. Spot sprayed on 5/23/19 and 8/5/2019. Page 19 of 39 Site Notes: 0.6 acres seeded in 2008. Burned in spring 2017, fall 2018, and fall 2019. Spot sprayed on 6/3/19 and 8/2/2019. Page 20 of 39 Site Notes: 1.43 acres. Estimated to have been seeded more than 10 years ago. Burned in spring of 2019. Spot sprayed 5/30/19, 6/3/19, 7/11/19, and 9/6/2019. Spot seeding occurred 10/24/2019 with a mixed height savannah mix. Page 21 of 39 Site Notes: This is a demonstration site for native landscapes in suburban yards. The southern 1/3 of the planting is a no mow fescue. This should be spot sprayed throughout the growing season as needed. No mowing should occur in this section. The middle section is a mid-height prairie mix and the Northern section is a tall prairie mix. The sites have been spot sprayed and mowed in the past. The middle and northern site should be burned in 2020. Page 22 of 39 Site Notes: 0.1 acres seeded in spring 2016 when construction occurred. No maintenance since time of seeding. Page 23 of 39 Site Notes: 0.54 acres. Seed date is unknown. Minimal to no maintenance performed in this area for the last 10 years. Occasionally sprayed for thistle. Occasionally flail mowed in fall. Page 24 of 39 Site Notes: 0.75 acres. Seed date is unknown. Minimal to no maintenance performed in this area for the last 10 years. Flail mowed fall 2019. Page 25 of 39 Site Notes: 0.68 acres seed with a mixed height mesic grass/forbe mix. Seeded in July of 2014. Maintained since then with spot spraying and mowing. Burned in spring of 2017 and 2019. Spot sprayed 5/17/2019 and 8/6/2019. Page 26 of 39 Site Notes: 0.94 acres seeded with BWSR Dry prairie Southeast 35-621 in June of 2016. Under a conversion contract for 3 years. Burned in spring of 2019. Spot sprayed 5/16/2019 and 8/13/2019. Page 27 of 39 Site Notes: 0.37 acres seeded in spring of 2017. Spot sprayed on 5/30/19 and 8/19/2019. Spot mowed 8/8/2019. Burned in fall of 2019. Page 28 of 39 Site Notes: 0.82 acres seeded in spring of 2017. Spot sprayed on 5/30/19, 6/3/2019 and 8/19/2019. Spot mowed on 6/3/2019 and 8/8/2019. Page 29 of 39 Site Notes: 0.06 acres seeded in spring of 2017. Seed mix is unknown. Spot sprayed 6/29/19 and 8/19/2019. Spot mowed 6/3/2019 and 8/8/2019. Page 30 of 39 Site Notes: 0.1 acres. Seed date and mix is unknown. Burned in spring of 2019. Spot sprayed on 5/30/19 8/8/2019. Spot mowed on 6/3/2019. Page 31 of 39 Site Notes: 0.6 acres seeded in spring of 2017 with MnDOT 35-221 seed mix. Spot sprayed 5/23/2019 and 8/6/2019. Burned 10/30/2019. Page 32 of 39 Site Notes: 1.34 acres. Unknown seed date and mix. Burned 5/6/2019. Spot sprayed 5/23/2019 and 8/13/2019. Page 33 of 39 Site Notes: 0.57 acres seeded over 10 years ago. Seed mix is unknown. Area has been managed since 2017. Burned in spring of 2019 and spot sprayed on 5/23/19 and 8/6/2019. Page 34 of 39 Site Notes: 1.16 acres seeded in fall of 2016. Seed mix is MnDOT 35-221. Area was burned in spring of 2019 and spot sprayed on 5/23/2019 and 8/6/2019. Page 35 of 39 Site Notes: 0.12 acres seeded in 2012. Some maintenance has been done to these areas in the past. Exact maintenance history and seeding mix is unknown. Page 36 of 39 Site Notes: 0.71 acres seeded in spring of 2016. Area was burned in spring of 2019. Spot sprayed 6/3/2019 and 8/7/2019. Page 37 of 39 Site Notes: Site is 0.2 acres. Seeded in spring of 2018 when pickleball courts were constructed by contractor. No maintenance done up to this point. Page 38 of 39 Site Notes: Site is 1.3 acres. Site has been managed for buckthorn and other invasive species in the past. Page 39 of 39 Site Notes: Site is 3.6 acres. Site has been managed for buckthorn and other invasive species in the past. CITY COUNCIL AGENDA SECTION: Public Hearings DATE: May 5, 2020 DEPARTMENT/DIVISION: Community Development/Planning Janet Jeremiah/ Beth Novak-Krebs ITEM DESCRIPTION: Villas at Smith Village ITEM NO.: IX.A. Requested Action Move to: •Close the Public Hearing; and •Adopt a Resolution for a Guide Plan Change from Medium High Density Residential to Medium Density Residential on 1 acre •Adopt a Resolution for a Planned Unit Development Concept Review on 1 acre •Approve the 1st Reading of an Ordinance for a Planned Unit Development District Review with waivers and a Zoning District Change from RM-2.5 to R1-9.5 on 1 acre •Adopt a Resolution for a Preliminary Plat of 3 lots into 7 lots on 1 acre Synopsis The applicant is proposing to develop a 1-acre parcel into 6 single-family detached villas. The 1-acre parcel is located within the Smith Village neighborhood just east of Eden Prairie Road on Glory Lane. The parcel was previously approved for six townhome units (two buildings with 3 units in each) as part of the overall Smith Village development. The Smith Village project also includes a 100-unit senior cooperative and 58 units of workforce housing. No changes are proposed to those portions of the project area. The entire Smith Village development is currently guided Medium High Density Residential and zoned RM-2.5. The applicant is now requesting to revise the approved townhome plan to include six detached single-family villa homes on individual lots rather than six townhomes. The location, access, parking, density, utilities, stormwater management and landscaping remains consistent with the previously approved plans. The only difference is that the plan will include 6 individual lots rather than attached units. Background As a separate 1-acre parcel, the density of the proposal is six units per acre, which necessitates a reguiding to Medium Density Residential. The change to detached homes necessitates a rezoning from multifamily zoning (RM-2.5) to single family zoning (R1-9.5) The requested 2040 Comprehensive Plan Amendment for the Villas at Smith Village is a land use change from Medium High Density Residential (14-40 units per acre) to Medium Density Residential (5-14 units per acre). This requested 2040 Comprehensive Plan Amendment requires action by both the City of Eden Prairie and the Metropolitan Council. Provided the City approves the Amendment, the City will submit an application for the 2040 Comprehensive Plan Amendment to the Metropolitan Council following the 1st reading of the project at City Council. PRELIMINARY PLAT On the approved plat for Smith Village, this property included three lots. One lot for each three unit building and the third lot for the access drive and the parallel parking stalls. The preliminary plat associated with this application for detached housing includes 6 individual lots for each unit and one lot for the access drive and parallel parking stalls. The proposed plan is very similar to the approved site plan except that the units are detached and situated on individual lots. Consistent with the approved plan, access is proposed off of Glory Lane and through a shared driveway with Applewood Pointe and the project includes 9 parallel parking stalls for visitors. TREE REPLACEMENT The Tree Replacement proposed with this project is the same as the current approved plan and complies with City Code. The applicant is adding landscaping because there is additional greenspace on site with the amended plan. ARCHITECTURE The applicant has provided examples of the building design and materials expected with the villas. The Development Agreement will include language requiring variety in the overall appearance of the villas. Approved Plat Proposed Plat UTILITIES The water and sewer mains will be installed along with Trail Pointe Ridge and Applewood Pointe, which are both currently under construction. The applicant is responsible for installing the individual sanitary sewer and water services to each individual lot. The plans will be revised so the services are not located under the driveways to the individual homes. SUSTAINABLE FEATURES The home builder is a designated Green Path Builder whose homes consistently achieve among the highest Home Energy Rating System scores for energy efficiency in the State. The homes will include sustainable features such as high efficiency furnaces and air conditioning, high efficiency appliances, low flow toilets, LED lighting, and more. PLANNED UNIT DEVELOPMENT WAIVERS The purpose of a Planned Unit Development (PUD) as stated in the City Code is to provide for a more creative and efficient approach to the use of land within the City; to allow variety in the types of environment available to people and distribution of overall density of population and intensity of land use where desirable and feasible; and provide for greater creativity and flexibility in environmental design. With the proposed rezoning to R1-9.5, density, gross site area, minimum lot width, and minimum lot size are new waivers. The lot requirements for the R1-9.5 zoning district are greater than the current zoning, which creates the need for waivers. Several waivers (i.e. parking setback, lots without street frontage and setbacks) were also included in the previous approval, but the setback numbers are slightly different. As a part of the amendment to the PUD, the applicant is seeking waivers to City Code requirements as outlined below. A. Density The R1-9.5 zoning district allows 3.5 dwelling units per acre. This project density of 6 units per acre and remains unchanged from the approved plan. The detached units require a rezoning to a residential zoning classification. R1-9.5 zoning is the most appropriate fit for the project. The proposed density is consistent with the proposed guiding of the property. B. Gross Site Area City Code requires the total area of the site to be 9,500 square feet per unit or 57,000 square feet (1.31 acres). The site provides 7,260 square feet per unit or 43,560 square feet (1 acre). The waiver allows the total site area to be less than 57,000 square feet. The overall site is part of the larger Smith Village project and the size of the site is fixed and is consistent with the approved plan. C. Parking Setback City Code requires a 10 foot parking setback for the parallel parking stalls from the property line. The proposed parking lot is 1 foot from the property line, which remains unchanged from the approved plan. The waiver allows for including visitor parking on the lot and provides for maneuvering room into the garages of the villas. D. Lots Without Street Frontage City Code requires lots to have frontage on a public street. The villa lots and Lot 7 do not have frontage on a public street, which remains unchanged from the approved plan. Due to the location of the existing lots and the fact that Glory Lane is a private street, the applicant cannot create lots that front on a public street. The waiver allows lots with no street frontage. E. Minimum Lot Width City Code requires a minimum lot width of 70 feet in the R1-9.5 Zoning District. The waiver allows Lot 1 at 55.50 feet wide, Lots 2-5 at 48 feet wide, Lot 6 at 60.50 feet wide and Lot 7 at 44.50 feet wide. With narrower lots and reduced setbacks the single-family homes resemble attached units. F. Minimum Lot Size City Code requires a minimum lot size of 9,500 square feet in the R1-9.5 Zoning District. The waiver allows Lot 1 at 5,605 square feet, Lots 2-5 at 4,848 square feet, and Lot 6 at 6,110 square feet. The proposed lot sizes are similar to the lots sizes in some recently approved single-family developments zoned R1-9.5. G. Building Setbacks City Code requires a side yard setback of a minimum of 5 feet and a total of 15 feet in the R1-9.5 Zoning District. The waiver allows Lots 2-5 to have a minimum side yard setback of 5 feet, but a total of only 10 feet since the buildings are only 10 feet apart. With narrower lots and reduced setbacks the single-family homes resemble attached units. Attachments 1. Ordinance 2. Resolution Comprehensive Plan Amendment 3. Resolution PUD Concept Plan 4. Resolution Preliminary Plat 5. Staff Report 6. Land Use Map 7. Zoning Map 8. Aerial photo 9. Unapproved Planning Commission Minutes VILLAS AT SMITH VILLAGE CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. __-2020 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LAND FROM ONE ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND IN EACH DISTRICT, AND ADOPTING BY REFERENCE CITY CODE CHAPTER 11 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the “land”) is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the RM- 2.5 District and be placed in the R1-9.5 District. Section 3. The proposal is hereby adopted and the land shall be, and hereby is removed from the RM-2.5 District and shall be included hereafter in the R1- 9.5 District, and the legal descriptions of land in each District referred to in City Code Section 11.03, Subdivision1, Subparagraph B, shall be, and are amended accordingly. Section 4. City Code Chapter 1, entitled “General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation” and Section 11.99, “Violation a Misdemeanor” are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 5. The land shall be subject to the terms and conditions of that certain Development Agreement dated as of ________, 2020, entered into between Halley land Corporation, and the City of Eden Prairie, and which Agreement are hereby made a part hereof. Section 6. This Ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 5th day of May, 2020, and finally read and adopted and ordered published in summary form as attached hereto at a regular meeting of the City Council of said City on the ____ day of ________, 2020. ATTEST: _____________________________ _____________________________ Kathleen Porta, City Clerk Ronald A. Case, Mayor PUBLISHED in the Eden Prairie Sun Current on__________________, 2020. EXHIBIT A LEGAL DESCRIPTION Legal Description Before the Final Plat Lots 2, 3 and 4, Block 1, Smith Village. Hennepin County, Minnesota Legal Description After the Final Plat Lots 1 -7, Block 1, Villas at Smith Village, Hennepin County, Minnesota CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020-__ A RESOLUTION AMENDING THE COMPREHENSIVE MUNICIPAL PLAN WHEREAS, the City of Eden Prairie has prepared and adopted the Comprehensive Municipal Plan (“Plan”); and WHEREAS, the Plan has been approved by the Metropolitan Council; and WHEREAS, the proposal of Villas at Smith Village, by Halley Land Corp. is for a Comprehensive Guide Plan Change from Medium High Density Residential to Medium Density Residential on 1 acre, as legally described on Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Eden Prairie, Minnesota, hereby adopts the amendment of the Plan based on plans stamped dated April 16, 2020 and the staff report dated March 4, 2020 and subject to Metropolitan Council approval. ADOPTED by the City Council of the City of Eden Prairie this 5th day of May, 2020. ___________________________ Ronald A. Case, Mayor ATTEST: _______________________ Kathleen Porta, City Clerk EXHIBIT A COMPREHENSIVE PLAN AMENDMENT Legal Description: Legal Description Before the Final Plat Lots 2, 3 and 4, Block 1, Smith Village. Hennepin County, Minnesota Legal Description After the Final Plat Lots 1 -7, Block 1, Villas at Smith Village, Hennepin County, Minnesota CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020-___ A RESOLUTION APPROVING THE PLANNED UNIT DEVELOPMENT CONCEPT OF VILLAS AT SMITH VILLAGE FOR HALLEY LAND CORP WHEREAS, the City of Eden Prairie has by virtue of City Code provided for the Planned Unit Development (PUD) Concept of certain areas located within the City; and WHEREAS, the Planning Commission did conduct a public hearing on March 9, 2020, on Villas at Smith Village by Halley Land Corp and considered their request for approval of the PUD Concept Plan and recommended approval of the request to the City Council; and WHEREAS, the City Council did consider the request on May 5th, 2020. NOW, THEREFORE, BE IT RESOLVED by the City Council of Eden Prairie, Minnesota, as follows: 1. Villas at Smith Village, being in Hennepin County, Minnesota, legally described as outlined in Exhibit A, is attached hereto and made a part hereof (“Property”). 2. That the City Council does grant PUD Concept approval as outlined in the plans stamp dated April 16th, 2020. 3. That the PUD Concept meets the recommendations of the Planning Commission dated March 9th, 2020. ADOPTED by the City Council of the City of Eden Prairie this 5th day of May, 2020. _______________________ Ronald A. Case, Mayor ATTEST: ______________________________ Kathleen Porta, City Clerk EXHIBIT A PUD Concept Legal Description: Legal Description Before the Final Plat Lots 2, 3 and 4, Block 1, Smith Village. Hennepin County, Minnesota Legal Description After the Final Plat Lots 1 -7, Block 1, Villas at Smith Village, Hennepin County, Minnesota CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020-___ RESOLUTION APPROVING THE PRELIMINARY PLAT OF VILLAS AT SMITH VILLAHE FOR HALLEY LAND CORP BE IT RESOLVED, by the Eden Prairie City Council as follows: That the preliminary plat of Villas at Smith Village for Halley Land Corp stamp dated April 16, 2020, and consisting of 1 acre into 7 lots, a copy of which is on file at the City Hall, is found to be in conformance with the provisions of the Eden Prairie Zoning and Platting ordinances, and amendments thereto, and is herein approved subject to approval of the 2nd reading of the Ordinance for the Planned Development District Review with waivers and a Zoning District change and approval of the Development Agreement. ADOPTED by the Eden Prairie City Council on the 5th day of May, 2020. __________________________ Ronald A. Case, Mayor ATTEST: __________________________ Kathleen Porta, City Clerk Trail Pointe Applewood PROPOSED VILLAS STAFF REPORT TO: Planning Commission FROM: Beth Novak-Krebs, Senior Planner DATE: March 4, 2020 SUBJECT: Villas at Smith Village LOCATION: Glory Lane APPPLICANTS: Halley Land Corp. OWNER: United Properties Development, LLC 120 DAY REVIEW: May 29, 2020 REQUEST: 1. Guide Plan Change from Medium High Density Residential to Medium Density Residential on 1 acre 2. Planned Unit Development Concept Review on 1 acre 3. Planned Unit Development District Review with waivers on 1 acre 4. Zoning District Change from RM-2.5 to R1-9.5 on 1 acre 5. Site Plan Review on 1 acre 6. Preliminary Plat of 3 lots into 7 lots on 1 acre BACKGROUND The applicant is proposing to develop a 1-acre property into six detached villas. The property is located off of Glory Lane within the Smith Village Development. The property is bordered on the southeast by the Minnesota River Bluffs LRT Regional Trail, on the west Trail Pointe Ridge and on the northeast by Applewood Pointe. The property consists of three lots. The property is part of the Smith Village project and was approved for attached townhomes. The approved plan, which was also proposed by Halley Land Corp., included two buildings with three units in each building. Each of the 6 for-sale attached townhomes as approved were custom homes that are approximately 3,500 square feet with two- or three- car garages. Staff Report – Villas at Smith Village Page 2 2 Due to changes in the market, Halley Land Corp. is proposing to change the six attached units to six detached villas on individual lots. COMPREHENSIVE PLAN AMENDMENT AND ZONING The property is currently guided Medium High Density Residential as a component of the overall Smith Village project. As a separate project, the proposal requires an Amendment to the Comprehensive Plan because single family detached homes are not allowed in the Medium High Density Residential category. The applicant is requesting an amendment of the 2040 Comprehensive Plan to reguide the 1 acre property to Medium Density Residential, which allows 5 to 14 units per acre. The proposed density is six units per acre. The Medium Density Residential category allows single-family detached housing that resembles single family attached housing. This requested 2040 Comprehensive Plan Amendment requires action by both the City of Eden Prairie and the Metropolitan Council. Provided the City approves the Amendment, the City will submit an application for the 2040Comprehensive Plan Amendment to the Metropolitan Council following the 1st reading of the project at City Council The property is currently zoned RM-2.5. Single family detached homes are not permitted in the RM-2.5 Zoning District. Therefore, the applicant is proposing to rezone the property to R1-9.5. PRELIMINARY PLAT On the approved plat for Smith Village, this property included three lots. One lot for each three unit building and the third lot for the access drive and the parallel parking stalls. The preliminary plat associated with this application of detached housing includes 6 individual lots for each unit and one lot for the access drive and parallel parking stalls. Approved Plat Proposed Plat Staff Report – Villas at Smith Village Page 3 3 SITE PLAN The proposed site plan is very similar to the approved site plan except that the units are detached and situated on individual lots. Consistent with the approved plan, access is proposed off of Glory Lane and through a shared driveway with Applewood Pointe and the project includes 9 parallel parking stalls for visitors. TREE REPLACEMENT The project requires 38 caliper inches of tree replacement, which is the same number of caliper inches in the approved plan. The applicant has submitted a tree replacement plan that meets the requirement. Although single family developments do not require landscaping per City Code, the plan includes additional trees as well as shrubs and planting beds to create balanced landscaping on the site. The proposed landscaping plan is very similar to the plan approved with the overall Smith Village project. SIGNS Conceptual sign details submitted with the Smith Village application, appear to meet the standards. However, the proposed monument sign will require review and approval through the sign permit process. ARCHITECTURE The applicant has provided examples of the building design and materials expected with the villas. The Development Agreement will include language requiring variety in the overall appearance of the villas. The language will include the following: the applicant shall offer to prospective purchasers a variety of architectural styles, building materials and colors; homes located next to each other may not have the same architectural style; the applicant shall notify potential buyers of the house architectural style and building material colors selected for adjacent lots already under contract for sale; and the applicant shall encourage purchasers to select materials and colors that provide variation from selections made for homes on adjoining lots. UTILITIES The water and sewer mains will be installed along with Trail Pointe Ridge and Applewood Pointe, which are both currently under construction. The applicant is responsible for installing the individual sanitary sewer and water services to each individual lot. The plans will be revised so the services are not located under the driveways to the individual homes. Staff Report – Villas at Smith Village Page 4 4 SUSTAINABLE FEATURES The home builder is a designated Green Path Builder whose homes consistently achieve among the highest Home Energy Rating System scores for energy efficiency in the State. The homes will include sustainable features such as high efficiency furnaces and air conditioning, high efficiency appliances, low flow toilets, LED lighting, and more. PLANNED UNIT DEVELOPMENT WAIVERS The purpose of a Planned Unit Development (PUD) as stated in the City Code is to provide for a more creative and efficient approach to the use of land within the City; to allow variety in the types of environment available to people and distribution of overall density of population and intensity of land use where desirable and feasible; and provide for greater creativity and flexibility in environmental design. As a part of the amendment to the PUD, the applicant is seeking waivers to City Code requirements as outlined below. A. Density The R1-9.5 zoning district allows 3.5 dwelling units per acre. This project density of 6 units per acre and remains unchanged from the approved plan. The detached units require a rezoning to a residential zoning classification. R1-9.5 zoning is the most appropriate fit for the project. The proposed density is consistent with the proposed guiding of the property. B. Gross Site Area City Code requires the total area of the site to be 9,500 square feet per unit or 57,000 square feet (1.31 acres). The site provides 7,260 square feet per unit or 43,560 square feet (1 acre). The waiver allows the total site area to be less than 57,000 square feet. The overall site is part of the larger Smith Village project and the size of the site is fixed and is consistent with the approved plan C. Parking Setback City Code requires a 10 foot parking setback for the parallel parking stalls from the property line. The proposed parking lot is 1 foot from the property line, which remains unchanged from the approved plan. The waiver allows for including visitor parking on the lot and provides for maneuvering room into the garages of the villas. D. Lots Without Street Frontage City Code requires lots to have frontage on a public street. The villa lots and Lot 7 do not have frontage on a public street, which remains unchanged from the approved plan. Due to the location of the existing lots and the fact that Glory Lane is a private street, the applicant cannot create lots that front on a public street. The waiver allows lots with no street frontage. E. Minimum Lot Width City Code requires a minimum lot width of 70 feet in the R1-9.5 Zoning District. The waiver allows Lot 1 at 55.50 feet wide, Lots 2-5 at 48 feet wide, Lot 6 at 60.50 feet wide and Lot 7 at 44.50 feet wide. With narrower lots and reduced setbacks the single-family homes resemble Staff Report – Villas at Smith Village Page 5 5 attached units. F. Minimum Lot Size City Code requires a minimum lot size of 9,500 square feet in the R1-9.5 Zoning District. The waiver allows Lot 1 at 5,605 square feet, Lots 2-5 at 4,848 square feet, and Lot 6 at 6,110 square feet. The proposed lot sizes are similar to the lots sizes in some recently approved single-family developments zoned R1-9.5. G. Building Setbacks City Code requires a side yard setback of a minimum of 5 feet and a total of 15 feet in the R1-9.5 Zoning District. The waiver allows Lots 2-5 to have a minimum side yard setback of 5 feet, but a total of only 10 feet since the buildings are only 10 feet apart. With narrower lots and reduced setbacks the single-family homes resemble attached units. STAFF RECOMMENDATION Recommend approval of the following requests: • Guide Plan Change from Medium High Density Residential to Medium Density Residential on 1 acre • Planned Unit Development Concept Review on 1 acre • Planned Unit Development District Review with waivers on 1 acre • Zoning District Change from RM-2.5 to R1-9.5 on 1 acre • Site Plan Review on 1 acre • Preliminary Plat of 3 lots into 7 lots on 1 acre This is based on plans stamp dated March 3, 2020, and staff report dated March 4, 2020. 1. Prior to the 1st reading by the City Council, the applicant shall: A. Revise the Landscaping Plan by creating a phasing plan for the tree replacement installation. Phase 1 trees are those that are installed after the mass grading on the site has occurred. This may include trees used for screening, trees on the perimeter of the property, and trees in common areas. Phase 2 are those plantings on the individual lots that have the potential to be damaged during home construction. This may include trees in the front and side yards and trees in the rear yard close to the construction area. B. The public utility plan is not included with the submittal although Sheet C0.01 references the utility plan sheet C4.09 and the public sanitary sewer and water mains and services are shown on the preliminary plat. The public sanitary sewer and water are planned to be installed as part of the Applewood Pointe – the sanitary sewer and water services for the villa locations with the updated plan must be coordinated with the public infrastructure plans. C. The sanitary sewer and water services should be within the turfed area of the lots rather than the driveways. This must be coordinated with the public sanitary sewer and water plans and installation of the infrastructure as part of Applewood Pointe. 2. Prior to release of the final plat, the applicant shall: A. A security for the public improvements that will serve this project shall be in place. Staff Report – Villas at Smith Village Page 6 6 3. Prior to land alteration permit issuance, the applicant shall: A. Submit detailed storm water runoff, wetland, utility, street and erosion control plans for review and approval by the City Engineer. B. Obtain and provide documentation of Watershed District approval. C. Notify the City and Watershed District 48 hours in advance of grading. D. Install erosion control at the grading limits of the property for review and approval by the City. E. Submit a tree replacement letter of credit, or escrow surety equivalent to 150% of the cost of the tree replacement. A surety will be required for each phase of tree replacement as shown on the Exhibit B Plans. F. Submit a land alteration bond, letter of credit, or escrow surety equivalent to 125% of the cost of the land alteration. 4. Prior to building permit issuance for the property, the applicant shall: A. Pay the appropriate cash park fees B. Provide recorded copies of any Home Owner Association documents or private covenants and agreements to the City following recording of the final plat. C. The public sanitary sewer and water to be located within Lot 7 as identified with Smith Village must be constructed prior to the issuance of a building permit for the villas. 5. The following waivers are granted through the PUD for the project as indicated in the plans stamp dated March 3, 2020. A. Density The R1-9.5 zoning district allows 3.5 dwelling units per acre. This project density of 6 units per acre and remains unchanged from the approved plan. The detached units require a rezoning to a residential zoning classification. R1-9.5 zoning is the most appropriate fit for the project. The proposed density is consistent with the proposed guiding of the property. B. Gross Site Area City Code requires the total area of the site to be 9,500 square feet per unit or 57,000 square feet (1.31 acres). The site provides 7,260 square feet per unit or 43,560 square feet (1 acre). The waiver allows the total site area to be less than 57,000 square feet. The overall site is part of the larger Smith Village project and the size of the site is fixed and is consistent with the approved plan C. Parking Setback City Code requires a 10 foot parking setback for the parallel parking stalls from the property line of Lot 7. The proposed parking lot is 1 foot from the property line, which remains unchanged from the approved plan. The waiver allows for including visitor parking on the lot and provides for maneuvering room into the garages of the villas. Staff Report – Villas at Smith Village Page 7 7 D. Lots Without Street Frontage City Code requires lots to have frontage on a public street. The villa lots and Lot 7 do not have frontage on a public street, which remains unchanged from the approved plan. Due to the location of the existing lots and the fact that Glory Lane is a private street, the applicant cannot create lots that front on a public street. The waiver allows lots with no street frontage. E. Minimum Lot Width City Code requires a minimum lot width of 70 feet in the R1-9.5 Zoning District. The waiver allows Lot 1 at 55.50 feet wide, Lots 2-5 at 48 feet wide, Lot 6 at 60.50 feet wide and Lot 7 at 44.50 fee wide. With narrower lots and reduced setbacks the single-family homes resemble attached units. F. Minimum Lot Size City Code requires a minimum lot size of 9,500 square feet in the R1-9.5 Zoning District. The waiver allows Lot 1 at 5,605 square feet, Lots 2-5 at 4,848 square feet and Lot 6 at 6,110 square feet. The proposed lot sizes are similar to the lots sizes in some recently approved single-family developments zoned R1-9.5. G. Building Setbacks City Code requires a side yard setback of a minimum of 5 feet and a total of 15 feet in the R1-9.5 Zoning District. The waiver allows Lots 2-5 to have a minimum side yard setback of 5 feet, but a total of only 10 feet since the buildings are only 10 feet apart. With narrower lots and reduced setbacks the single-family homes resemble attached units. ¯ Location Map: Villas at Smith VillageAddress: Glory LaneEden Prairie, Minnesota 0 190 38095 FeetEDEN PRAIRIE ROADGLORY LANE TIMBER LAKE DRIVE CURTISLANEMinnesotaRiverBluffsLRTRegionalTrailMiller Park Applewood Pointe Trail Pointe Ridge SheldonPlace Highway212PROJECT SITE City of Eden Prairie Zoning Map In case of discrepency related to a zoning classification on this zoning map, the Ordinanceand attached legal description on file at Eden Prairie City Center will prevail. ¯ Shoreland Management Classifications 100 - Year Floodplain Natural Environment Waters Recreational Development Waters General Development Waters (Creeks Only)GD NE RD Up dated through approved Ordinances #26-2008 Ordinance #33-2001 (BFI Addition) approved, but not shown on this map edition Date: March 1, 2009 0 0.080.04 Miles DISCLAIMER: The City of Eden Prairie does not warrant the accuracy nor the correctnessof the information contained in this map. It is your responsibility to verify the accuracyof this information. In no event will The City of Eden Prairie be liable for any damages,including loss of business, lost profits, business interruption, loss of business informationor other pecuniary loss that might arise from the use of this map or the information itcontains. Map information is believed to be accurate but accuracy is not guaranteed.Any errors or omissions should be reported to The City of Eden Prairie.M:\GIS\Users\Departments\CommDev\Themes\Shapes\Zoning and all other land use information\OfficialMaps\OfficialZoning.mxd Map was Updated/Created: June 11, 2008 Zoning Map: Villas at Smith VillageAddress: Glory LaneEden Prairie, MN 55344 Rural R1-44 One Family- 44,000 sf. min. R1-22 One Family-22,000 sf min. R1-13.5 One Family-13,500 sf min. R1-9.5 One Family-9,500 sf min. RM-6.5 Multi-Family-6.7 U.P.A. max. RM-2.5 Multi-Family-17.4 U.P.A. max. Airport Office Office Neighborhood Commercial Community Commercial Highway Commercial Airport Commercial Regional Service Commercial Regional Commercial TC-C TC-R TC-MU Industrial Park - 2 Acre Min, Industrial Park - 5 Acre Min. General Industrial - 5 Acre Min. Public Golf Course Water Right of Way TOD-R Transit Oriented Development - Residential Transit Oriented Development - Residential Proposing to Rezone from RM-2.5 to R1-9.5 Project Site Park and Open SpaceEden Prairie RoadGlory Lane MinnesotaRiverBluffsLRTRegionalTrail ¯ Aerial Map: Villas at Smith VillageAddress: Glory LaneEden Prairie, Minnesota 0 190 38095 FeetEDEN PRAIRIE ROADGLORY LANE TIMBER LAKE DRIVE CURTISLANEMinnesotaRiverBluffsLRTRegionalTrailMiller Park Applewood Pointe Trail Pointe Ridge SheldonPlace Highway212PROJECT SITE UNAPPROVED MINUTES EDEN PRAIRIE PLANNING COMMISSION MONDAY, MARCH 9, 2020 7:00 PM—CITY CENTER Council Chambers 8080 Mitchell Road COMMISSION MEMBERS: John Kirk, Charles Weber, Ann Higgins, Andrew Pieper, Ed Farr, Michael DeSanctis, Christopher Villarreal, Carole Mette CITY STAFF: Julie Klima, City Planner; Carter Schulze, Assistant City Engineer; Matt Bourne, Manager of Parks and Natural Resources; Kristin Harley, Recording Secretary I. CALL THE MEETING TO ORDER Chair Pieper called the meeting to order at 7:00 p.m. II. PLEDGE OF ALLEGIANCE – ROLL CALL Commission member DeSanctis was absent. III. APPROVAL OF AGENDA MOTION: Weber moved, seconded by Higgins to approve the agenda. MOTION CARRIED 7-0. IV. MINUTES MOTION: Kirk moved, seconded by Weber to approve the minutes of February 24, 2020, amended in Item I denoting Pieper as Chair and in Item V, on page two, paragraph three correcting Packer’s last name. MOTION CARRIED 7-0. V. PUBLIC HEARINGS VILLAS AT SMITH VILLAGE (2020-01) Request for: • Guide Plan Change from Medium High Density to Medium Density on one acre • Planned Unit Development Concept Review on one acre • Planned Unit Development District Review with waivers on one acre • Zoning District Change from RM-2.5 to R1-9.5 on one acre • Preliminary Plat of 3 lots into 7 lots on one acre PLANNING COMMISSION MINUTES March 9, 2020 Page 2 Michael Halley, of Halley Land Corporation, presented a PowerPoint and explained the application. This would take the six connected townhomes approved as a part of the Smith Village project and make them into six individual units. Hanson Builders LLC will be the builder; they are a Green Path builder. The same parking design and essential footprint would be retained. What would be eliminated were the common walls between the units, but nothing from the Smith Village development. This offered more green space and more privacy. The primary clients for this development were the sons and daughters of residents moving into the Applewood Pointe project, meant for seniors. These young parents wanted their grandchildren to be close to their grandparents. These would be two-story homes. Halley displayed elevations and the floorplans of the six villas instead of the previously approved six attached townhouses, and detailed the superior cost efficiencies with this redesign. Mette asked if the back of the houses would be walkouts. Halley replied they would be full walkouts with the option to finish off the lower level. All the lots would be landscaped as part of an HOA and the developer was planning to plant more trees than required. Villarreal asked for examples, in the form of anecdotes, of who had approached Halley to inquire about the property. Halley replied his firm did not advertise, but with Applewood Pointe under construction the development had been well-received and was 85 percent sold. Somehow these clients found out through United Properties or the City of Eden Prairie about these six units and Halley personally received 12 sincerely interested calls to purchase. All interested parties mentioned their parents moving into Applewood Pointe. The grandchildren ranged from two years old to 12 years old. This proved to be a pleasant surprise to United Properties. Villarreal asked Halley to list additional sustainable features. Halley replied this was a Green Path development. Hanson strove for the highest HERS scores for energy efficiency in the state annually, and was rated 130 on a scale from 0 to 150. Villarreal asked if Halley knew where the panels would be located in the garages to make them EV-ready, and Halley did not have that information, but could find out. Villarreal asked if the units would be solar panel ready. Halley replied there was no plan for that for now, but the southeast-facing roofs could have solar panels installed. Villarreal asked if heat pumps had been investigated instead of high efficiency furnaces, and Halley replied Hanson had offered that before, but was not sure about the cost. PLANNING COMMISSION MINUTES March 9, 2020 Page 3 Higgins noted the sewer system there required some coordination and was uncertain how this would connect to sewer and water. Halley replied the arrangement with United Properties made United Properties responsible for water and sewer, and all infrastructure and connections. Hanson would handle the paving and the individual connections. Hanson was a participant in the maintenance of the stormwater ponds. Klima presented the staff report. She reiterated this was a component of the previously-approved Smith Village development, and the only change was to detach these six connected townhomes into six detached villas. Therefore it required a Comprehensive Plan amendment and a rezoning. City staff researched this for alternatives, and both staff and the City Attorney determined a straightforward approach of addressing this specific issue rather than opening up a potentially larger conversation with broader community impacts. Mette asked if this changed anything in the prior approvals of the PUD and the waivers. Klima replied many of the waivers were generally similar to the original waivers. There was some discussion in the staff report, provided to the commission members, as to level of differences. Some involved measurement changes. Lots without street frontage were a carryover from the previous design, as was the minimum lot size, et cetera. This design was very similar and consistent in nature with what was approved, Villarreal asked staff to remind him where the school bus stops were located. Klima replied in the previous approval process there was some general conversation about school bus stops, but at this point they were to be determined. United Properties would do outreach with the school district and its Transportation Department. MOTION: Villarreal moved, seconded by Farr to close the public hearing. MOTION CARRIED 7-0. Kirk stated he found this a straightforward change with no fundamentals changed, and need to be consistent with the Comprehensive Plan and zoning ordinance. Farr and Weber concurred. Mette stated she was happy to hear there would be families living in adjacent buildings to their parents and grandparents. MOTION: Kirk moved, seconded by Weber to recommend approval for a Guide Plan Change from Medium High Density to Medium Density on one acre; Planned Unit Development Concept Review on one acre; Planned Unit Development District Review with waivers on one acre; Zoning District Change from RM-2.5 to R1-9.5 on one acre; and Preliminary Plat of 3 lots into seven lots on one acre based on plans stamp dated March 3, 2020 and the staff report dated March 4, 2020. MOTION CARRIED 7-0. PLANNING COMMISSION MINUTES March 9, 2020 Page 4 VI. PLANNERS’ REPORT VII. MEMBERS’ REPORTS VIII. ADJOURNMENT MOTION: Weber moved, seconded by Higgins to adjourn. MOTION CARRIED 7-0. The meeting was adjourned at 7:21 p.m. zSmith Village Re-Platting Halley Land Corp with Hanson Builders, LLC zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪Date: May 5, 2020 ▪To: Beth Novak-Krebs, Senior Planner, City of Eden Prairie ▪From: Michael Halley zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪We are grateful to the City staff, Planning Commission and City Council for their time and consideration of our Application. ▪As the plans show, our re-platting preserves the same density (6 units), the same access the same amount of guest parking, the same landscaping features, the same attractive architecture, while offering a bit more diverse look. The same Homeowners’ Association maintaining the exterior elements (snow, mow, etc.), and the same price range ($600-750,000). zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪Furthermore, our Villas offer 39.7% of “green space” vs 35.2% of the previously approved six (6) attached townhouses. ▪Therefore, the single difference we are requesting is simply the elimination of the “common wall” that attaches the townhouses together. This elimination yields all the positive aspects…more privacy for the residents, more diversity of architecture for the community, simpler insurance requirements for the homeowners, more greenspace, and, frankly, a less massive streetscape. zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪The staff has advised us that we are, in effect, requesting a re-guiding to Medium Density Residential. This re-guiding does allow for single-family detached homes subject to the city’s approval of our home designs. The front elevations and floor plans of the Villa homes we will be offering are attached. We have selected Hanson Builders as General Contractor for the villas. They are the 6th largest homebuilder in the state, and have been in business over 40 years. They are a designated Green Path Builder whose homes consistently achieve among the highest HERS scores for energy- efficiency in the State annually, include high- efficiency appliances and mechanical systems, LED lighting, low-flush toilets and smart- controlled irrigation systems. zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪Lastly, I think it is important for the City to understand our motivation for requesting a change from townhouses to Villas. We have been contacted by a number of potential buyers over the past few months who have surprised us a bit. At first, we thought their inquiries were simply an aberration but it is clear to us now that perhaps the most interested clients for our six (6) homes are: the children of the purchasers at the Applewood Pointe” senior cooperative. Simply stated, younger families want to live closer to their parents and this motivation is primarily driven by the mutual benefits of the grandchildren being in proximity to their grandparents. This has prompted us to offer two- story plans in addition to walkout rambler Villas to answer the needs of younger families as well as empty nesters who still desire a detached dwelling. zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪Walkout Rambler Villa Plan 1 ▪2,527 sq. ft. finished ▪2-3 bedrooms ▪2-3 baths ▪Finished lower level included zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪3,006 sq. ft. finished ▪Walkout Rambler Villa Plan 2 ▪2-4 bedrooms ▪2-3 baths ▪Finished lower level included ▪38 ft. width ▪66’ max depth zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪2,316 sq. ft. finished ▪Walkout 2-story Villa Plan 1 ▪3-4 bedrooms ▪2.5-3.5 baths ▪Finished upper level included ▪38 ft. width ▪66’ max depth zSmith Village Re-Platting of Six (6) Townhouses to Six (6) Detached Villas ▪Your approval of our request is sincerely appreciated. ▪Thank you! ▪Michael Halley CITY COUNCIL AGENDA SECTION: Payment of Claims DATE: May 5, 2020 DEPARTMENT/DIVISION: Sue Kotchevar, Office of the City Manager/Finance ITEM DESCRIPTION: Payment of Claims ITEM NO.: X. Requested Action Move to: Approve the Payment of Claims as submitted (roll call vote) Synopsis Checks 274530 - 274748 Wire Transfers 1025190 - 1025278 Wire Transfers 7611 - 7624 City of Eden PrairieCouncil Check Summary 5/5/2020 Division Amount Division Amount 000 General 10,642 308 E-911 81 100 City Manager 31,521 315 Economic Development 6,265 102 Legal Counsel 60,773 502 Park Development 9,197 110 City Clerk -38 509 CIP Fund 873 111 Customer Service 1,370 522 Improvement Projects 2006 4,008 112 Human Resources 51 526 Transportation Fund 1,444 113 Communications 610 528 Shady Oak Rd-CR 61 North 3,414 114 Benefits & Training 3,884 532 EP Road Connect Flying Cloud 7,931 131 Finance 13,148 804 100 Year History 2 132 Housing and Community Services 6,255 Total Capital Projects Fund 33,215 136 Public Safety Communications 3,962 137 Economic Development -5,471 601 Prairie Village Liquor 163,462 151 Park Maintenance 33,281 602 Den Road Liquor 304,791 153 Organized Athletics 2,312 603 Prairie View Liquor 30,859 154 Community Center 7,495 605 Den Road Building 707 156 Youth Programs 3,182 701 Water Enterprise Fund 93,246 162 Arts 330 702 Wastewater Enterprise Fund 6,937 163 Outdoor Center 310 703 Stormwater Enterprise Fund 111,430 168 Arts Center 60 Total Enterprise Fund 711,432 180 Police Sworn 10,584 184 Fire 36,768 802 494 Commuter Services 8,301 186 Inspections 213 807 Benefits Fund 789,519 200 Engineering 77 811 Property Insurance 2,343 201 Street Maintenance 5,808 812 Fleet Internal Service 116,269 202 Street Lighting 702 813 IT Internal Service 48,808 Total General Fund 227,832 814 Facilities Capital ISF 54 815 Facilites Operating ISF 38,384 301 CDBG 130 816 Facilites City Center ISF 61,916 303 Cemetary Operation 18 817 Facilites Comm. Center ISF 48,529 Total Special Revenue Fund 148 Total Internal Svc/Agency Funds 1,114,123 Report Total 2,086,750 City of Eden PrairieCouncil Check Register by GL 5/5/2020 Check #Amount Supplier / Explanation Account Description Business Unit 274574 301,857 HEALTHPARTNERS Medical/Dental Premiums Health and Benefits Premiums May 2020 7621 238,444 ULTIMATE SOFTWARE GROUP, THE Federal Taxes Withheld Health and Benefits Payroll taxes PR ending 04.10.20 7619 182,268 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION PERA Health and Benefits PERA PR ending 03.27.20 7617 132,965 MINNESOTA DEPT OF REVENUE Sales Tax Payable Historical Culture Sales Tax Mar 2020 274587 89,695 KARL CHEVROLET INC Autos Fleet - Public Works 1025278 56,723 XCEL ENERGY Electric Water Supply (Wells) 274586 55,952 JOHNSON BROTHERS LIQUOR CO Liquor Product Received Prairie View Liquor Store 274543 52,410 BLACKSTONE CONTRACTORS LLC Improvement Contracts Stormwater Capital 1025255 47,052 GREGERSON ROSOW JOHNSON & NILAN LTD Legal Legal Council 274617 44,443 SOUTHERN GLAZER'S WINE AND SPIRITS OF MN Liquor Product Received Prairie Village Liquor Store 1025260 37,095 LOGIS Software Maintenance IT Operating 274544 32,900 BLUE WATER SCIENCE OCS - Monitoring Stormwater Non-Capital 7623 26,282 EMPOWER Deferred Compensation Health and Benefits 274698 25,145 JOHNSON BROTHERS LIQUOR CO Liquor Product Received Prairie View Liquor Store 274642 24,314 ABM EQUIPMENT AND SUPPLY COMPANY Autos Fleet - Public Works 1025271 23,617 SRF CONSULTING GROUP INC Deposits General Fixed Asset Account Gr 274731 21,969 SOUTH METRO PUBLIC SAFETY TRAINING FACIL Other Contracted Services Public Safety Training Facilit 274533 21,509 BREAKTHRU BEVERAGE MN BEER LLC Liquor Product Received Den Road Liquor Store 274655 21,097 CAPITOL BEVERAGE SALES LP Liquor Product Received Prairie Village Liquor Store 274530 20,775 DALY JOSEPH L Legal Legal Council 7622 20,358 ICMA RETIREMENT TRUST-457 Deferred Compensation Health and Benefits 274732 19,679 SOUTHERN GLAZER'S WINE AND SPIRITS OF MN Liquor - Incentives Den Road Liquor Store 274555 17,040 DIVERSIFIED CONSTRUCTION Capital Under $25,000 Senior Center 274610 15,193 PHILLIPS WINE AND SPIRITS INC Liquor Product Received Prairie Village Liquor Store 1025228 15,184 XCEL ENERGY Electric Traffic Signals 274683 14,676 GRI EDEN PRAIRIE, LLC Building Rental Prairie Village Liquor Store 274534 14,422 BREAKTHRU BEVERAGE MN WINE & SPIRITS Liquor Product Received Den Road Liquor Store 274638 14,112 BREAKTHRU BEVERAGE MN BEER LLC Liquor Product Received Den Road Liquor Store 274585 13,553 JJ TAYLOR DISTRIBUTING MINNESOTA Liquor Product Received Den Road Liquor Store 274693 13,273 INSITUFORM TECHNOLOGIES USA, INC Utility System Stormwater Capital 7616 13,121 FURTHER - AKA SELECT HSA - Employee Health and Benefits 274696 13,094 JJ TAYLOR DISTRIBUTING MINNESOTA Liquor Product Received Prairie Village Liquor Store 274551 13,000 CLIFTONLARSONALLEN LLP Audit & Financial Finance 274566 12,928 FULLY PROMOTED EMS Supplies Fire 1025249 12,576 DIVERSE BUILDING MAINTENANCE Janitor Service Senior Center 1025248 11,794 CENTERPOINT ENERGY Gas General Community Center 1025207 11,692 BELLBOY CORPORATION Liquor Product Received Prairie Village Liquor Store 274744 10,738 WATERFRONT RESTORATION LLC Other Contracted Services Stormwater Non-Capital 274531 10,058 BREAKTHRU BEVERAGE MN BEER LLC Liquor Product Received Prairie Village Liquor Store 274694 9,197 INTEGRITY REMODELING & DESIGN GROUP LLC Building Park Acquisition & Development 274685 8,821 HEALTH STRATEGIES Health & Fitness Fire 274545 8,709 CAPITOL BEVERAGE SALES LP Liquor Product Received Prairie Village Liquor Store 274589 8,669 LAVAN FLOOR COVERING Capital Under $25,000 Senior Center 274639 8,252 BREAKTHRU BEVERAGE MN WINE & SPIRITS Liquor Product Received Den Road Liquor Store 274632 8,192 WORKS COMPUTING INC Software Maintenance IT Operating 274613 8,168 SAFETY VEHICLE SOLUTIONS Autos Fire 274594 7,309 MANSFIELD OIL COMPANY Motor Fuels Fleet Operating 274603 6,933 NAC Contract Svcs - HVAC City Center - CAM Check #Amount Supplier / Explanation Account Description Business Unit2746286,307 VERIZON WIRELESS Operating Supplies IT Operating 1025220 6,237 MINNESOTA ROADWAYS CO Contract Svcs - Asphalt/Concr.City Center - CAM 274624 6,120 TREE TRUST Other Contracted Services Tree Removal 274532 5,939 BREAKTHRU BEVERAGE MN WINE & SPIRITS Liquor Product Received Prairie Village Liquor Store 1025214 5,905 HAWKINS INC Treatment Chemicals Water Treatment 274636 5,819 BREAKTHRU BEVERAGE MN BEER LLC Liquor Product Received Prairie Village Liquor Store 274747 5,521 XCEL ENERGY CTR Other Contracted Services General Fixed Asset Account Gr 1025246 5,391 BELLBOY CORPORATION Liquor Product Received Den Road Liquor Store 1025262 5,340 METROPOLITAN MECHANICAL CONTRACTORS Contract Svcs - HVAC City Center - CAM 274580 5,248 HP INC Computers Water Treatment 274681 4,897 GRAYMONT Treatment Chemicals Water Treatment 274570 4,793 GRAYMONT Treatment Chemicals Water Treatment 274742 4,695 U.S DEPARTMENT OF AGRICULTURE Other Contracted Services Deer Consultant 274686 4,534 HEALTHPARTNERS Payroll-Program Manager 494 Corridor Commission 274538 4,194 ARTISAN BEER COMPANY Liquor Product Received Prairie Village Liquor Store 274735 4,081 STATE OF MINNESOTA Autos Fleet - Park & Rec 1025269 4,050 SHERWIN WILLIAMS Operating Supplies City Hall (City Cost) 274720 3,969 PHILLIPS WINE AND SPIRITS INC Liquor Product Received Den Road Liquor Store 274577 3,880 HOHENSTEINS INC Liquor Product Received Prairie Village Liquor Store 274559 3,750 EDEN PRAIRIE EARLY CHILDHOOD Other Contracted Services Housing and Community Service 1025229 3,747 STREICHERS Clothing & Uniforms Police Sworn 1025253 3,706 GENUINE PARTS COMPANY Operating Supplies Fleet Operating 274627 3,696 UNITED SYSTEMS & SOFTWARE INC Capital Under $25,000 Water Metering 1025226 3,656 VISTAR CORPORATION Merchandise for Resale Concessions 274675 3,470 EMERGENCY AUTOMOTIVE TECHNOLOGY INC Autos Fleet - Police 274725 3,272 SAFEASSURE CONSULTANTS INC Other Contracted Services Organizational Services 274678 3,222 GERTENS Chemicals Park Maintenance 274691 2,955 HOHENSTEINS INC Liquor Product Received Prairie Village Liquor Store 1025215 2,925 LANDS END CORPORATE SALES Clothing & Uniforms Police Sworn 274680 2,913 GRAPE BEGINNINGS Liquor Product Received Prairie Village Liquor Store 1025211 2,890 GENUINE PARTS COMPANY Repair & Maint. Supplies Ice Arena Maintenance 1025256 2,844 HAWKINS INC Treatment Chemicals Water Treatment 274554 2,804 COSTCO WHOLESALE Deposits City Clerk 274689 2,800 HENNEPIN COUNTY FIRE CHIEF ASSOCIATION Dues & Sub-Magazine etc Fire 7611 2,760 FURTHER - AKA SELECT FSA - Dependent Care Health and Benefits 1025236 2,757 GREENSIDE INC Contract Svcs - Lawn Maint.City Center - CAM 1025268 2,704 REINDERS INC Operating Supplies Park Maintenance 274719 2,685 PAUSTIS & SONS COMPANY Liquor Product Received Den Road Liquor Store 274648 2,680 ARTISAN BEER COMPANY Liquor Product Received Den Road Liquor Store 274646 2,620 ANCOM COMMUNICATIONS INC Equipment Repair & Maint Public Safety Communications 274714 2,570 MUSIC TOGETHER IN THE VALLEY LLC Instructor Service Preschool Events 274637 2,473 BREAKTHRU BEVERAGE MN WINE & SPIRITS Liquor Product Received Prairie Village Liquor Store 274644 2,326 AGGREGATE INDUSTRIES Landscape Materials/Supp Park Maintenance 1025227 2,312 WINE COMPANY, THE Liquor Product Received Prairie Village Liquor Store 274746 2,231 WINE MERCHANTS INC Liquor Product Received Prairie Village Liquor Store 274608 2,185 PAUSTIS & SONS COMPANY Liquor Product Received Prairie Village Liquor Store 274726 2,052 SAFETY SIGNS Operating Supplies Park Maintenance 274605 2,000 NORATEK SOLUTIONS INC Software Maintenance IT Operating 274695 1,995 INTERNATIONAL UNION OF OPERATING Union Dues Withheld Health and Benefits 274739 1,950 TREE TRUST Other Contracted Services Tree Removal 274567 1,936 GERTENS Chemicals Park Maintenance 274569 1,911 GRAPE BEGINNINGS Liquor Product Received Prairie Village Liquor Store Check #Amount Supplier / Explanation Account Description Business Unit10252041,885 VINOCOPIA Liquor Product Received Prairie Village Liquor Store 274741 1,747 TRUE BRANDS Liquor Product Received Den Road Liquor Store 274575 1,712 HENNEPIN COUNTY ACCOUNTS RECEIVABLE Board of Prisoner Police Sworn 274654 1,710 BUREAU OF CRIMINAL APPREHENSION Software Maintenance IT Operating 274561 1,700 EDEN PRAIRIE COMMUNITY EDUCATION Gym Rental Volleyball 274578 1,625 HOMELINE Other Contracted Services Housing and Community Service 1025213 1,621 HANSEN THORP PELLINEN OLSON Other Contracted Services General Fixed Asset Account Gr 274658 1,611 CLEAR RIVER BEVERAGE CO Liquor Product Received Prairie Village Liquor Store 1025233 1,596 BRAUN INTERTEC CORPORATION Design & Engineering Wastewater Capital 1025234 1,540 CLAREY'S SAFETY EQUIPMENT EMS Supplies Emergency Management 274579 1,516 HOMES GONYEA Deposits City Clerk 1025247 1,497 CDW GOVERNMENT INC.Software Maintenance IT Operating 274692 1,470 IND SCHOOL DIST 272 P&R Refunds Community Center Admin 274595 1,448 MARCO INC Small Tools Emergency Management 1025264 1,442 NEW FRANCE WINE COMPANY Liquor Product Received Den Road Liquor Store 1025231 1,433 AMERIPRIDE LINEN & APPAREL SERVICES Janitor Service Prairie Village Liquor Store 1025243 1,405 WENCK ASSOCIATES INC OCS - Monitoring Stormwater Non-Capital 1025221 1,402 MTI DISTRIBUTING INC Equipment Parts Fleet Operating 274609 1,384 PERA Payroll-Program Manager 494 Corridor Commission 274630 1,242 WINE MERCHANTS INC Liquor Product Received Prairie Village Liquor Store 274581 1,228 HUELER KELLI AND GREG Deposits General Fund 274707 1,214 MEGA BEER Liquor Product Received Den Road Liquor Store 1025277 1,194 WINE COMPANY, THE Liquor Product Received Den Road Liquor Store 1025242 1,189 VINOCOPIA Liquor Product Received Prairie Village Liquor Store 1025257 1,155 INTERSTATE POWER SYSTEMS INC Equipment Repair & Maint Water Supply (Wells) 1025261 1,128 MENARDS EMS Supplies Maintenance Facility 274703 1,118 LEAGUE MN CITIES INS TRUST Insurance Property Insurance 274702 1,061 LEAGUE MN CITIES INS TRUST Insurance Property Insurance 7624 1,043 U.S. BANK - I-494 PURCH. CARD Marketing 494 Corridor Commission 274641 1,036 ABLE HOSE & RUBBER INC Repair & Maint. Supplies Water Treatment 274669 972 DODGE OF BURNSVILLE Equipment Parts Fleet Operating 274721 960 PITNEY BOWES Postage Customer Service 274584 944 J H LARSON COMPANY Supplies - Electrical City Center - CAM 274625 938 TRI STATE BOBCAT INC.Equipment Repair & Maint Fleet Operating 274550 925 CLEAR RIVER BEVERAGE CO Liquor Product Received Den Road Liquor Store 1025259 898 LEROY JOB TRUCKING INC Other Contracted Services Police Sworn 274583 896 INDEED BREWING COMPANY LLC Liquor Product Received Prairie Village Liquor Store 274706 868 MAVERICK WINE LLC Liquor Product Received Den Road Liquor Store 1025219 867 MINNESOTA EQUIPMENT Equipment Parts Fleet Operating 1025276 864 VIKING ELECTRIC SUPPLY Repair & Maint. Supplies Miller Park 274690 853 HENNEPIN COUNTY I/T DEPT Equipment Repair & Maint IT Operating 274542 840 BLACK STACK BREWING INC Liquor Product Received Prairie Village Liquor Store 1025205 834 YOUNGSTEDTS COLLISION CENTER Autos Fleet - Police 1025230 821 ADAMS PEST CONTROL INC Contract Svcs - Pest Control City Center - CAM 1025266 818 PETERSON BROS ROOFING AND CONSTRUCTION I Contract Svcs - Roof Maintenance Facility 274705 808 MARS SUPPLY Lubricants & Additives Fleet Operating 274556 783 DODGE OF BURNSVILLE Equipment Parts Fleet Operating 274635 760 PETTY CASH Mileage & Parking Facilities Staff 274626 750 ULTIMATE SOFTWARE GROUP, THE Ultimate (prev. Ceridian)IT Operating 274740 750 TREEHOUSE Other Contracted Services Housing and Community Service 1025272 728 TEE JAY NORTH INC Building Repair & Maint.Den Road Liquor Store 274623 700 THE ADVENT GROUP Temp 494 Corridor Commission Check #Amount Supplier / Explanation Account Description Business Unit274717697OXYGEN SERVICE COMPANY EMS Supplies Fire 1025208 669 BIFFS INC Waste Disposal Park Maintenance 274671 667 EDEN PRAIRIE COMMUNITY EDUCATION Gym Rental Community Band 1025217 667 MENARDS EMS Supplies Utility Operations - General 1025195 666 FLEETPRIDE INC Equipment Parts Fleet Operating 274704 653 MACQUEEN EQUIPMENT INC Equipment Parts Fleet Operating 7620 650 ULTIMATE SOFTWARE GROUP, THE Garnishment Withheld Health and Benefits 274634 636 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION PERA Health and Benefits 274600 617 MODIST BREWING COMPANY Liquor Product Received Prairie Village Liquor Store 1025241 616 TOLL GAS AND WELDING SUPPLY Repair & Maint. Supplies Utility Operations - General 274565 612 FREEZIAC Merchandise for Resale Concessions 274679 612 GOPHER STATE ONE-CALL OCS - Utility Locates Water Distribution 1025254 608 GRAINGER Repair & Maint. Supplies Utility Operations - General 274621 600 SUBURBAN WILDLIFE CONTROL INC Equipment Repair & Maint Stormwater Collection 274612 595 REVOLUTIONARY SPORTS, LLC Instructor Service Preschool Events 274653 584 BROCK WHITE COMPANY LLC Patching Asphalt Street Maintenance 274582 572 INBOUND BREW CO Liquor Product Received Prairie Village Liquor Store 274568 571 GOLDEN VALLEY SUPPLY CO Supplies - General Bldg General Community Center 7612 570 FURTHER - AKA SELECT HRA Health and Benefits 274572 560 H & L MESABI Equipment Parts Fleet Operating 274711 539 MODIST BREWING COMPANY Liquor Product Received Prairie Village Liquor Store 274619 537 STEEL TOE BREWING LLC Liquor Product Received Prairie Village Liquor Store 274677 525 FIRE SAFETY USA INC EMS Supplies Fire 274645 512 AIRGAS USA LLC Contract Svcs - Pool Pool Maintenance 1025244 507 2ND WIND EXERCISE Capital Under $25,000 Fitness Center 1025265 500 NORTH CENTRAL LABORATORIES Laboratory Chemicals Water Treatment 274564 489 FLYING CLOUD TRANSFER STATION 4553 Waste Disposal Park Maintenance 1025196 484 GREATAMERICA FINANCIAL SVCS Postage Customer Service 1025224 470 STATE SUPPLY COMPANY Supplies - HVAC City Center - CAM 274557 470 DOMACE VINO Liquor Product Received Prairie Village Liquor Store 274668 462 DGA FIRST IN DISC GOLF Operating Supplies Staring Lake 7618 452 MINNESOTA DEPT OF REVENUE Motor Fuels Fleet Operating 7613 448 PMA FINANCIAL NETWORK INC Bank and Service Charges Wastewater Accounting 274591 446 LUPULIN BREWING COMPANY Liquor Product Received Prairie Village Liquor Store 274723 426 PRYES BREWING COMPANY Liquor Product Received Den Road Liquor Store 274709 418 MIDWEST SIGN & SCREEN PRINTING SUPPLY CO Signs Traffic Signs 274553 408 CORE & MAIN Repair & Maint. Supplies Park Maintenance 274647 399 APPLIANCE OUTLET CENTER Supplies - General Bldg Police (City Cost) 274622 398 TENNANT Equipment Repair & Maint Fleet Operating 274656 389 CAPREF EDEN PRAIRIE LLC Building Rental CDBG - Public Service 1025232 380 BARRIE SPENCER Clothing & Uniforms Police Sworn 274664 380 CORPORATE TECHNOLOGIES Computers 494 Corridor Commission 274682 368 GREAT LAKES COCA-COLA DISTRIBUTION Liquor Product Received Den Road Liquor Store 274718 352 PAFFY'S PEST CONTROL Contract Svcs - Pest Control Maintenance Facility 1025237 347 HACH COMPANY Laboratory Chemicals Water Treatment 1025245 344 ASPEN WASTE SYSTEMS INC.Waste Disposal Utility Operations - General 1025218 339 METRO SALES INCORPORATED*Equipment Rentals IT Operating 1025197 334 GREENSIDE INC Contract Svcs - Snow Removal Fire Station #1 1025267 333 PREMIUM WATERS INC EMS Supplies Fire 274590 330 LIFE SUPPORT INNOVATIONS Conference/Training Utility Operations - General 274571 328 GREAT LAKES COCA-COLA DISTRIBUTION Liquor Product Received Den Road Liquor Store 274649 328 ASPEN MILLS Clothing & Uniforms Police Sworn Check #Amount Supplier / Explanation Account Description Business Unit1025212311GRAINGEROffice Supplies City Hall (City Cost) 274663 303 COMMUNITY HEALTH CHARITIES OF MINNESOTA Charitable Contributions Health and Benefits 1025252 303 GARTNER REFRIGERATION & MFG INC Contract Svcs - Ice Rink Ice Arena Maintenance 274700 300 LANO EQUIPMENT INC Other Rentals Street Maintenance 274573 297 HEADFLYER BREWING Liquor Product Received Prairie Village Liquor Store 274657 297 CENTURYLINK Telephone IT Operating 1025251 296 EDEN PRAIRIE FIREFIGHTER'S RELIEF ASSOC Union Dues Withheld Health and Benefits 274727 285 SAINT CROIX VINEYARDS, INC.Liquor Product Received Den Road Liquor Store 274616 275 SIGNSOURCE Printing Theatre Initiative 1025201 271 SHAMROCK GROUP, INC - ACE ICE Liquor Product Received Prairie Village Liquor Store 274601 270 MOTOROLA SOLUTIONS INC Equipment Repair & Maint Public Safety Communications 274618 262 STAPLES ADVANTAGE Office Supplies Customer Service 274676 258 FARRELL EQUIPMENT & SUPPLY CO INC Equipment Parts Street Maintenance 1025191 258 CUSTOM HOSE TECH Equipment Parts Fleet Operating 274547 250 CHRIS CASTLE INC Website Development 494 Corridor Commission 274708 250 METROPOLITAN AIRPORTS COMMISSION Tuition Reimbursement/School Police Sworn 274688 248 HENNEPIN COUNTY ACCOUNTS RECEIVABLE Board of Prisoner Police Sworn 7615 239 VANCO SERVICES Bank and Service Charges Wastewater Accounting 274548 238 CINTAS Operating Supplies Park Maintenance 274651 235 BLACK STACK BREWING INC Liquor Product Received Den Road Liquor Store 274540 233 BCA - MNJIS Employment Support Test Fire 274738 227 TRANSUNION RISK & ALTERNATIVE DATA Other Contracted Services Police Sworn 274549 226 CISNEROS CECILIA AR Utility Water Enterprise Fund 274640 218 LINDEMAN BRETT Clothing & Uniforms Police Sworn 274546 216 CENTURYLINK Telephone Water Distribution 1025210 210 ECM PUBLISHERS INC Employment Advertising Organizational Services 274592 206 MACQUEEN EQUIPMENT INC Equipment Parts Fleet Operating 274722 196 PROP - PR Charitable Contributions Health and Benefits 274712 195 MR CUTTING EDGE Contract Svcs - Ice Rink Ice Arena Maintenance 1025209 187 CDW GOVERNMENT INC.Operating Supplies IT Operating 1025203 181 VAN PAPER COMPANY Cleaning Supplies Police (City Cost) 274558 180 EARL F ANDERSEN INC Signs Traffic Signs 1025192 176 DUNGAN, TRACY Mileage & Parking Concessions 274611 169 PRAIRIE LAWN AND GARDEN Small Tools Park Maintenance 1025250 165 ECM PUBLISHERS INC Employment Advertising Organizational Services 274701 164 LEAGUE MN CITIES INS TRUST Insurance Property Insurance 274733 163 SOUTHWEST NEWS MEDIA Legal Notices Publishing City Clerk 1025240 162 QUALITY PROPANE Motor Fuels Ice Arena Maintenance 274631 162 WOODEN HILL BREWING COMPANY LLC Liquor Product Received Den Road Liquor Store 274737 160 SUBURBAN CHEVROLET Equipment Parts Fleet Operating 274736 159 STEEL TOE BREWING LLC Liquor Product Received Den Road Liquor Store 274670 159 DOMACE VINO Liquor Product Received Den Road Liquor Store 274541 158 BIG STATE INDUSTRIAL SUPPLY INC Cleaning Supplies Utility Operations - General 274535 158 56 BREWING LLC Liquor Product Received Den Road Liquor Store 1025238 157 HESSEL, ZACK Clothing & Uniforms Police Sworn 274562 154 EMERGENCY AUTOMOTIVE TECHNOLOGY INC Equipment Parts Fleet Operating 274724 154 RED BULL DISTRIBUTING COMPANY INC Liquor Product Received Den Road Liquor Store 1025190 153 CARLSTON, BRANDON Clothing & Uniforms Police Sworn 274560 150 EDEN PRAIRIE CHAMBER OF COMMERCE Miscellaneous Administration 1025275 150 USA SECURITY Maintenance Contracts Water Treatment 274745 135 WILD ONES PRAIRIE EDGE P&R Refunds Community Center Admin 274536 130 ANSCHEL RAY P&R Refunds Community Center Admin Check #Amount Supplier / Explanation Account Description Business Unit274563130ERGOMETRICSEmployment Support Test Organizational Services 274652 130 BOURGET IMPORTS Liquor Product Received Den Road Liquor Store 1025194 125 FITZGERALD, MAUREEN Tuition Reimbursement/School Fitness Classes 274661 123 COMCAST Cable TV Fire 1025216 123 MATHESON TRI-GAS INC Operating Supplies Fleet Operating 274697 117 JOHN HENRY FOSTER MINNESOTA INC Maintenance Contracts Water Treatment 274602 113 MURPHY DONNA P&R Refunds Community Center Admin 1025193 108 FASTENAL COMPANY Operating Supplies Fleet Operating 274650 105 BLACK & DECKER, U S INC Operating Supplies Park Maintenance 1025206 105 A-SCAPE INC Contract Svcs - Snow Removal Den Bldg. - CAM 274659 103 COMCAST Cable TV Fire 1025273 100 TWIN CITY SEED CO Landscape Materials/Supp Park Maintenance 274620 100 SUBURBAN CHEVROLET Equipment Parts Fleet Operating 1025258 98 LANDS END CORPORATE SALES Clothing & Uniforms Police Sworn 1025223 94 STAR TRIBUNE MEDIA COMPANY LLC Dues & Subscriptions Utility Operations - General 274729 94 SHRED RIGHT Waste Disposal City Hall (City Cost) 274615 93 SHAKOPEE BREWHALL Liquor Product Received Prairie Village Liquor Store 274710 92 MN MAINTENANCE EQUIPMENT INC Operating Supplies Park Maintenance 274576 87 HENNEPIN COUNTY TREASURER PUBLIC WORKS Waste Disposal Park Maintenance 274537 86 ARCPOINT LABS OF EDEN PRAIRIE Employment Support Test Organizational Services 274730 85 SNAP-ON TOOLS Small Tools Fleet Operating 1025198 84 MPX GROUP, THE Printing Police Sworn 1025200 81 QUALITY PROPANE Equipment Parts Fleet Operating 274552 81 COMCAST Equipment Repair & Maint E-911 Program 274598 81 MINNESOTA PRINT MANAGEMENT LLC Office Supplies Customer Service 1025263 76 MTI DISTRIBUTING INC Equipment Parts Fleet Operating 274743 72 UNITED WAY Charitable Contributions Health and Benefits 274665 70 CUB FOODS EDEN PRAIRIE Operating Supplies Police Sworn 1025239 69 OLSEN CHAIN & CABLE Equipment Repair & Maint Street Maintenance 274662 67 COMCAST Cable TV Fire 274715 64 NCPERS GROUP LIFE INSURANCE PERA Health and Benefits 274629 59 WASHBURN LORI P&R Refunds Community Center Admin 274672 58 EDEN PRAIRIE CRIME PREVENTION FUND Charitable Contributions Health and Benefits 1025199 58 PARKER, WARD Operating Supplies Police Sworn 7614 57 MONEY MOVERS INC Other Contracted Services Community Center Admin 274596 56 MINNESOTA AIR INC Building Repair & Maint.Utility Operations - General 274728 55 SHAKOPEE BREWHALL Liquor Product Received Den Road Liquor Store 274716 51 NINE MILE CREEK WATERSHED DISTRICT Printing Stormwater Non-Capital 274713 48 MULTIHOUSING CREDIT CONTROL Other Contracted Services Police Sworn 274748 39 ZIMMER RUTH AR Utility Water Enterprise Fund 274539 36 ASPEN MILLS Postage Fire 274643 35 ABRA AUTO BODY & GLASS Equipment Repair & Maint Fleet Operating 274607 35 PARK JEEP INC Equipment Parts Fleet Operating 274614 35 SCHLOSSMACHER, JIM Mileage & Parking Police Sworn 274734 33 STAPLES ADVANTAGE Office Supplies Utility Operations - General 274699 32 JOHNSON NANCY P&R Refunds Community Center Admin 274673 30 EDEN PRAIRIE FOUNDATION Charitable Contributions Health and Benefits 274674 30 EDEN PRAIRIE FOUNDATION Charitable Contributions Health and Benefits 274684 28 HASE TRICIA P&R Refunds Community Center Admin 274597 23 MINNESOTA DEPT OF HEALTH Licenses, Taxes, Fees Utility Operations - General 1025222 21 SPS COMPANIES Repair & Maint. Supplies Park Maintenance 274588 20 LANG LINDA Lessons & Classes Arts Center Check #Amount Supplier / Explanation Account Description Business Unit27460420NELSON CHERYL Lessons & Classes Arts Center 274606 20 OMALLEY ELLEN Lessons & Classes Arts Center 1025202 19 SPOK, INC.Cell/Pager Plans IT Operating 274687 19 HENKE JEREMIAH Equipment Repair & Maint Street Maintenance 1025270 14 SPRINT Cell/Pager Plans IT Operating 274667 14 DELGADO SARAH P&R Refunds Community Center Admin 1025274 11 UPS Postage Human Resources 274666 10 CULLIGAN BOTTLED WATER Corridor Comm. Misc 494 Corridor Commission 274599 10 MINNESOTA VALLEY ELECTRIC COOPERATIVE Electric Riley Creek Woods 1025235 6 FASTENAL COMPANY Supplies - Pool Pool Maintenance 274660 2 COMCAST Other Contracted Services Police Sworn2,086,750 Grand Total CITY COUNCIL AGENDA SECTION: Report of Community Development Director DATE: May 5, 2020 DEPARTMENT/DIVISION: Community Development Janet Jeremiah, Director; Jeanne Karschnia, Housing and Community Services ITEM DESCRIPTION: Community Development Block Grant Coronavirus (CDBG-CV) Funding ITEM NO.: XIV.C.1. Requested Action Move to: Adopt Resolution approving the Substantial Amendment to the 2019 CDBG Annual Action Plan to allocate $168,055 of Community Development Block Grant Coronavirus funds. Synopsis The office of Housing and Urban Development (HUD) has announced that the City of Eden Prairie has been allocated $168,055 in Community Development Block Grant Coronavirus (CDBG-CV) funds to be used to prevent, prepare for, and respond to the coronavirus through emergency assistance programs through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The City of Eden Prairie has developed an Amendment to their 2019 CDBG Action Plan for the use of CDBG-CV funds, and held a public comment period of April 30, 2020 to May 5, 2020, to obtain the views of citizens on the substantial amendment. Attachments CDBG-CV Resolution Amendment to 2019 CDBG Annual Action Plan CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020- RESOLUTION AMENDING THE EDEN PRAIRIE 2019 ANNUAL ACTION PLAN TO ALLOCATE $168,055 OF COMMUNITY DEVELOPMENT BLOCK GRANT CORONAVIRUS (CDBG-CV) FUNDS. WHEREAS, the City of Eden Prairie, as an entitlement community, participates in the Community Development Block Grant Program; and WHEREAS, the City of Eden Prairie has been allocated $168,055 of Community Development Block Grant Coronavirus (CDBG-CV) funds provided to the of City of Eden Prairie to be used to prevent, prepare for, and respond to the coronavirus through emergency assistance programs through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The City of Eden Prairie has developed a substantial amendment to its 2019 CDBG Annual Action Plan for the use of CDBG-CV funds, and held a public comment period of April 30, 2020 to May 5, 2020, to obtain the views of citizens on the substantial amendment. NOW, THEREFORE, BE IT RESOLVED that Substantial Amendment 1 to the City of Eden Prairie 2019 Annual Action Plan, allocating up to $168,055 in CDBG-CV funds from the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, be approved and that the City Council of the City of Eden Prairie approves the following activities from the CDBG-CV funding, and authorizes and directs the Mayor and the City Manager to execute Subrecipient and Third Party Agreements on behalf of the City. These actions are consistent with the requirements applicable to a substantial amendment as defined in the Hennepin County Consortium Consolidated Plan 2015-2019. BE IT FURTHER RESOLVED that the City Manager is authorized to execute on behalf of the City, the Application for Federal Assistance, Form SF424 submitted with the Substantial Amendment to the 2019 Action Plan, the HUD Funding/Approval form and all Certifications and other documents required in connection therewith. ADOPTED by the City Council of the City of Eden Prairie this 5th day of May, 2020. __________________________ Ronald A Case, Mayor ATTEST: ________________________ Kathleen Porta, City Clerk Public Service Activities Funding Level PROP (Housing and Food Support) $90,000 Senior Community Services $880 Total $90,880 City of Eden Prairie Substantial Amendment to the 2019 CDBG Annual Action Plan Item Description: Amend the Eden Prairie 2019 Annual Action Plan to allocate $168,055 of Community Development Block Grant Coronavirus (CDBG-CV) funds provided to the of City of Eden Prairie to be used to prevent, prepare for, and respond to the coronavirus through emergency assistance programs. The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds. Given the immediate needs faced by our community, the U.S. Department of Housing and Urban Development (HUD) has announced that the city of Eden Prairie’s allocation is $168,055. Resolution: BE IT RESOLVED, that Substantial Amendment to the City of Eden Prairie 2019 Annual Action Plan, allocating up to $168,055 in CDBG-CV funds from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), to public service activities, consistent with the requirements applicable to a substantial amendment as defined in the Hennepin County Consortium Consolidated Plan 2015-2019, be approved. Background: History: The Eden Prairie City Council approved the 2019 Eden Prairie Annual Action Plan on March 5, 2019 via Resolution 2019-40. The Annual Action Plan is prepared to meet the statutory planning and application requirements for the receipt and use of Community Development Block Grant (CDBG) funds from HUD. Each year the city is required to submit an Annual Action Plan, which constitutes the city’s formal application to HUD for its CDBG allocation, indicating how the city plans to use the funds it will receive during the upcoming program year to address the priority needs identified in the five-year Consolidated Plan. The Five-Year Plan defines a substantial amendment to a previously approved Annual Action Plan as any action that: 1) Increases or decreases the amount awarded to activity by a minimum of $100,000 and is 50 percent or more of the original budget, 2) Changes the purpose, scope or intended beneficiaries of a activity; or 3) Creates a new activity. This change constitutes a substantial amendment as it increases or decreases the amount awarded to activity by a minimum of $100,000 and it creates new activities, and as a result it must be approved by the Eden Prairie City Council. The City published notice in the Eden Prairie News on April 30, 2020 for a 5-day public comment period. The city received a waiver from HUD to shorten the required 30 day comment period to 5 days. This waiver was offered by HUD as part of the CARES Act. Current Request: This request is for approval of the Substantial Amendment to the City of Eden Prairie 2019 CDBG Annual Action Plan allocating $168,055 of CDBG-CV funds to the following new Public Service activities: 1) Emergency Housing Support, 2) Emergency Food Support, 3) Emergency Rental/Mortgage Assistance, and 4) Personal Protection Equipment (PPE). Impact/Outcomes: The allocation of CDBG-CV funds to support these emergency assistance, emergency support services and emergency services activities will facilitate the emergency assistance to low and moderate income Eden Prairie residents whose lives have been affected by the Coronavirus.