HomeMy WebLinkAboutCity Council - 10/07/2008
AGENDA
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, OCTOBER 7, 2008 CITY CENTER
5:00 – 6:25 PM, HERITAGE ROOM II
6:30 – 7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Sherry Butcher, Jon
Duckstad, and Kathy Nelson
CITY STAFF: City Manager Scott Neal, Police Chief Rob Reynolds, Fire Chief George Esbensen,
Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah, Parks and
Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, Assistant to the
City Manager Michael Barone, City Attorney Ric Rosow, and Recorder Lorene McWaters
Heritage Room II
I. EMERGENCY PREPAREDNESS PLANNING
Council Chamber
II. OPEN PODIUM
III. ADJOURNMENT
AGENDA
EDEN PRAIRIE CITY COUNCIL MEETING
TUESDAY, OCTOBER 7, 2008 7:00 PM, CITY CENTER
Council Chamber
8080 Mitchell Road
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Sherry Butcher, Jon
Duckstad, and Kathy Nelson
CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Jay Lotthammer, Public
Works Director Eugene Dietz, City Planner Michael Franzen, Community Development Director
Janet Jeremiah, City Attorney Ric Rosow and Council Recorder Jan Curielli
I. ROLL CALL / CALL THE MEETING TO ORDER
II. COLOR GUARD / PLEDGE OF ALLEGIANCE
III. OPEN PODIUM INVITATION
IV. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS
V. PROCLAMATIONS / PRESENTATIONS
A. PROP UPDATE
VI. MINUTES
A. COUNCIL WORKSHOP HELD TUESDAY, SEPTEMBER 16, 2008
B. CITY COUNCIL MEETING HELD TUESDAY, SEPTEMBER 16, 2008
VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS
VIII. CONSENT CALENDAR
A. CLERK’S LICENSE LIST
B. APPROVE SECOND READING OF ORDINANCE AMENDING CITY CODE
SECTION 2.22 RELATING TO BUDGET ADVISORY COMMISSION
TERMS AND ADOPT RESOLUTION APPROVING SUMMARY FOR
PUBLICATION
C. ADOPT RESOLUTION APPOINTING ELECTION JUDGES FOR 2008
GENERAL ELECTION
D. APPROVE IDENTITY THEFT PREVENTION PROGRAM
E. APPROVE CHANGE ORDER NO. 3 FOR THE CSAH 4 AND VALLEY
VIEW ROAD INTERSECTION IMPROVEMENTS, I.C. 96-5405
CITY COUNCIL AGENDA
October 7, 2008
Page 2
F. APPROVE PLANS AND SPECIFICATIONS AND ORDER ADVERTISEMENT
FOR BIDS FOR LOWER MINNESOTA RIVER WATERSHED DISTRICT
EROSION STABILIZATION PROJECT FOR STUDY AREAS 1 & 2,
I.C. 07-5698
G. AWARD CONTRACT FOR STUDY ARE FOR OF THE LOWER MINNESOTA
RIVER WATERSHED DISTRICT EROSION STABILIZATION PROJECT TO
MINNESOTA NATIVE LANDSCAPES, INC., I.C. 07-5698
IX. PUBLIC HEARINGS / MEETINGS
A. APPROVE SENIOR MULTIFAMILY HOUSING DEVELOPMENT
PROGRAM IN CITY OF BLOOMINGTON AND APPROVE ISSUANCE
OF REVENUE OBLIGATIONS TO FINANCE THE REDEVELOPMENT
(Resolution)
B. MENARDS Request for: Planned Unit Development Concept Review on 15.72
acres, Planned Unit Development District Review on 15.72 acres, Zoning District
Amendment within the Commercial Regional Service Zoning District on 15.72
acres, and Site Plan Review on 15.72 acres. Location: 12600 Plaza Drive.
(Resolution for PUD Concept Review; Ordinance for PUD District Review
and Zoning District Amendment)
X. PAYMENT OF CLAIMS
XI. ORDINANCES AND RESOLUTIONS
XII. PETITIONS, REQUESTS AND COMMUNICATIONS
XIII. APPOINTMENTS
XIV. REPORTS
A. REPORTS OF COUNCILMEMBERS
B. REPORT OF CITY MANAGER
1. Adopt Resolution Authorizing Issuance of $3,120,000 General
Obligation Equipment Certificates, Series 2008A
2. Adopt Resolution Relating to $1,845,000 General Obligation
Permanent Improvement Revolving Fund Bonds, Series 2008B
3. Approve Custody Agreement with U.S. Bank National Association
C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR
D. REPORT OF PARKS AND RECREATION DIRECTOR
CITY COUNCIL AGENDA
October 7, 2008
Page 3
E. REPORT OF PUBLIC WORKS DIRECTOR
1. First Reading of an Ordinance Amending City Code Chapter 3
Relating to Watering of Another’s Property
F. REPORT OF POLICE CHIEF
G. REPORT OF FIRE CHIEF
H. REPORT OF CITY ATTORNEY
XV. OTHER BUSINESS
XVI. ADJOURNMENT
ITEM NO.: V.A.
UNAPPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, SEPTEMBER 16, 2008 CITY CENTER
5:00 – 6:25 PM, HERITAGE ROOM II
6:30 – 7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Sherry Butcher, Jon
Duckstad, and Kathy Nelson
CITY STAFF: City Manager Scott Neal, Police Chief Rob Reynolds, Fire Chief George Esbensen,
Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah, Parks and
Recreation Director Jay Lotthammer, Assistant City Engineer Rod Rue, Communications
Manager Joyce Lorenz, Assistant to the City Manager Michael Barone, City Attorney Ric Rosow,
and Recorder Lorene McWaters
Heritage Room II
Council Member Duckstad and Community Development Director Janet Jeremiah were absent.
I. TRANSPORTATION PLANNING & FINANCE
Public Works Director Gene Dietz presented a PowerPoint on the Transportation CIP and
Pavement Management Program.
Transportation CIP
Dietz reviewed transportation capital improvement requests and funding sources for
2009-2013, 2014-2023 and 2024-2033. He said the projects in this portion of the CIP
represent enhanced, expanded and new road construction, but do not include residential
street maintenance.
Mayor Young asked why projects headed up by MnDOT and the County are listed in the
City’s CIP. He said this seems misleading since the City funds only a small portion of
such projects. Dietz said that even though the City is not the lead on many of these of
these projects, our financial responsibility is in the millions when added up over time and
the intent of the budget is to provide the full financial picture of all funding. In 2013, the
City expects to be responsible for funding about $35 million in road construction
projects. The City’s major source of dedicated transportation funding is Municipal State
Aid (MSA). Staff projects about $13 million in MSA in 2013. The 25-year forecast
shows $200 million in city costs for road construction projects, with about $60 million in
MSA, resulting in a possible shortfall of $140 million.
Council Member Nelson asked why plans continue to show Anderson Lakes Parkway
being expanded to four lanes in front of Eden Lake Elementary School, when residents
are opposed to it for safety reasons. Dietz said traffic projections show that Anderson
Lakes Parkway will be under capacity at some point in the future, and adding lanes is the
solution. He said the Council always has the final say over whether or not any road
construction project is approved for construction
Special assessments, private sources, and tax increment financing provide some funds for
transportation construction, although they do not fill the gap. The Capital Improvement
Fund , tax levy, special services districts, and a transportation utility are possible sources
of funding. Dietz said the City’s best source of additional transportation funding would
be a dedicated transportation utility; however, cities currently do not have the authority to
establish transportation utilities. He said the state legislature has been reluctant to enable
this solution.
Pavement Management Plan
Dietz said the City has 36 million square feet of pavement, worth between $94 and $240
million. The City currently spends about $2.5 million per year on pavement
maintenance. Dietz said the City has a computerized inventory of all pavements in Eden
Prairie. Every road in the City has been assessed by consultants and assigned a number
(Pavement Condition Index – PCI) based on the quality of the surface.
Dietz showed a graphic that demonstrates the lifetime of a roadway receiving only
routine maintenance compared to one receiving strategic maintenance (sealcoating and
overlay). The sealcoat and overlay program lengthens the life of a roadway by decades
and costs less in the long run. He said that spending $1 for preventative maintenance in a
timely manner will avoid spending $6.80 at a later date for pavement replacement.
The City currently maintains approximately 225 miles of City streets. The current PCI is
81. The written goal is to maintain an average PCI of 60, but with a funding target of 80.
This would require increasing investment from the CIP fund of 5% annually in
combination with $500,000 annually from the Street Division operating budget.
Council Member Nelson said it makes sense to spend money to maintain roads now
rather than having to replacement them sooner at a higher cost.
Council Chamber
II. OPEN PODIUM
A. TOM RINE – EDEN PRAIRIE ART CENTER
Mr. Rine said he is an artist had the pleasure of knowing Mr. Sampson. Until
recently, Rine lived in Minneapolis. He said it took Minneapolis a long time to
put all the pieces together for the arts to thrive in that City. He encouraged the
City Council to approve funding for upgrades to the Art Center building so it can
open as scheduled in January. He said once the Art Center is open, grants and
donations will fall into place. He encouraged the Council to fulfill the Sampson
family’s vision and dream, which led them to donate the building to the City.
III. ADJOURNMENT
ITEM NO.: V.B. UNAPPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL MEETING
TUESDAY, SEPTEMBER 16, 2008 7:00 PM, CITY CENTER
Council Chamber
8080 Mitchell Road
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Sherry Butcher, Jon
Duckstad and Kathy Nelson
CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Jay Lotthammer, Public
Works Director Gene Dietz, Community Development Director Janet Jeremiah, City Attorney Ric
Rosow and Council Recorder Jan Curielli
I. ROLL CALL / CALL THE MEETING TO ORDER
Mayor Young called the meeting to order at 7:00 PM. All Council Members were present.
II. COLOR GUARD / PLEDGE OF ALLEGIANCE
Mayor Young thanked Boy Scout Troop 497, chartered by the noon Rotary Club, for
presenting the colors.
III. OPEN PODIUM INVITATION
IV. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS
MOTION: Aho moved, seconded by Duckstad, to approve the agenda as published.
Motion carried 5-0.
V. PROCLAMATIONS / PRESENTATIONS
A. DONATION FROM EDEN PRAIRIE FOUNDATION FOR COMMUNITY
CENTER FLOORING
Gary Stevens, representing the Eden Prairie Foundation, presented a $2,500 check to
help cover an unforeseen expense at the Community Center. He said the Rotary Club
and the City are also giving $2,500 each which is a very good partnership. He noted
over the past 27 years the Eden Prairie Foundation has given back to the City of Eden
Prairie close to $1,000,000 in the form of grants and scholarships.
B. WELCOME NEW ABC STUDENTS
Gardner Gay, Executive Director of A Better Chance (ABC) Eden Prairie, said they
have 12 young ladies in the ABC program this year. Each of the students introduced
themselves.
Mayor Young welcomed the students and noted there is a 5K fund-raising run for the
ABC program on September 27 at Purgatory Creek Park.
CITY COUNCIL MINUTES
September 16, 2008
Page 2
C. THREE RIVERS PARK DISTRICT UPDATE
Lotthammer said we in Eden Prairie are fortunate to have the Three Rivers Park
system here. They are a partner organization we can be proud to be affiliated with.
Cris Gears, Superintendent of Three Rivers Park District, presented a slide overview
of current Three Rivers Park District activities and the many amenities offered in and
around Eden Prairie. He reviewed the regional parks they operate within five
different counties in the metropolitan area. He noted they have had free parking in the
parks since 2005.
Rosemary Franzese, Park District Commissioner, thanked the Mayor and City
Council for the opportunity to come out to talk about the park district. She distributed
copies of the current Three Rivers Park District map.
Mayor Young thanked them for coming to the meeting to share the information.
D. EDEN PRAIRIE ART CENTER
1. FUNDRAISING UPDATE
Young said there will be a presentation by the Friends of the Eden Prairie
Art Center followed by a continuation of the discussion from the previous
Council meeting.
Stacy Desai, Chair of Friends of the Eden Prairie Art Center, said they first
started meeting as a group seven weeks ago with a focus completely on
raising funds. They have 12 members on the volunteer committee, all of
whom play different roles based on their different talents. She said they are
creating an awareness of the Art Center for everybody in the community
and want to get people to understand who they are and what they are doing.
They have organized three key events in the community: one on September
27 for Pre-Kindergarten to 4th grade, another on October 11 for grades 5-8,
and the third on November 15 at the High School for grades 9-12. She said
they have received a lot of in-kind donations, including someone who is
doing a marketing research study that will determine what type of programs
will be needed. She said they need to get business leaders in the community
to help advertise the events.
Desai said the second part of their activities is fundraising. They received a
$25,000 donation and have applied for their first grant. There are two grant
applications going out in September, two more in October and more are
scheduled for the rest of the year. She noted they have four people writing
grants. Their final event will be a Silent Auction held at the Community
Center on December 6. She said the key to getting private donors is
increasing awareness and networking. She understood Mayor Young
volunteered his help in making connections to meet people.
CITY COUNCIL MINUTES
September 16, 2008
Page 3
Duckstad thanked her and the other volunteers for their efforts. He asked if
they tell prospective donors what uses will be made of the property. Desai
said they sketch a rough outline of the programs and talk about those
activities the building donor enjoyed. Duckstad then asked if they have
some sense of who will decide what the actual use will be. Desai said their
focus is to raise money to open the Art Center. Neal noted the Arts and
Culture Commission and the Parks Commission will be involved in running
the operations and the programming.
Young asked if their fundraising goal is $500,000. Desai said that was
correct. Young then asked if they have a time by which they hope to
achieve the goal. Desai replied they hope to have it in January of 2009, but
they will accept funds after that time. She said they are competing for
dollars with several other fund-raising events in the City.
Young asked if the expectation for the Friends of the Art Center is to raise a
large chunk of money before the Art Center is opened. Desai said they
discussed multiple options with Mr. Lotthammer. They wanted to do most
of the fundraising before it opened, but they can’t guarantee the dollars
being there. They talked about having a fundraising arm associated with the
Art Center after it opened so there would always be a fundraising element to
the art center.
Young asked if funds raised will be tied to a specific improvement at the
Art Center or if they will be general funds. Desai said they are doing
general fundraising.
Duckstad asked if they have a sense of whether the goal of $500,000 is
attainable, or if it is more wishful thinking. Desai said it is attainable, but
the question is whether it is attainable before January 1.
Butcher asked if they are set up to accept memberships. Desai said the
website is set up to accept donations and they plan to have a recognition
wall within the Art Center for donors who give at a certain level. Butcher
thought memberships are a way to create sustainability. Desai said they
talked about the business model for how the facility runs. She said they will
need $350,000 for improvements and equipment for the building plus two
years of operating expenses.
Aho said there are a lot of great plans in place for fundraising and asked if
they looked at some of the models used in the community to solicit
corporate sponsors. Desai replied they are going to try for significant donors
that way, and that is why they need to network to get leads for that.
Lotthammer said Bill Clark and Mary Eagan from the Hockey Association
efforts have attended many of the meetings and are working closely with
the committee. Desai said Ms Eagan is handling the recognition wall, and
Bill Clark is an expert in networking.
CITY COUNCIL MINUTES
September 16, 2008
Page 4
Nelson said she assumed the foundation grants applied for will take several
months to turn around so that some of that money might be heard from after
January 1. She thought there is a chance for some significant dollars from
the grant applications. Desai said waiting for a grant takes time.
Ann Rorem, Chair of the Arts and Culture Commission said she had the
privilege of working on the Task Force that helped pull together the
business plan to accept the building. She said there are a number of exciting
programs to promote the Art Center to the community. She noted the
fundraising committee and the Arts Commission are concerned we may be
losing momentum without the City showing support by beginning the work
to open the building, completing the requirements for ADA compliance and
upgrading the parking lot.
2. ART CENTER SITE IMPROVEMENTS
3. ART CENTER REMODELING WORK
Young then moved the discussion back to the items tabled at the last
meeting and suggested the Council talk about those two motions
collectively. He said he wanted to get a better sense regarding the staff
expectation about the opening date for the center. Lotthammer said we are
getting close to having to make program commitments if we are going to
open the center soon. We need to do marketing, planning and recruiting of
instructors. He said classes will help generate revenue to offset expenses.
They are on a cusp of a timeline for promoting the January season,
assuming we open in January with fundraising going on and improvements
going on at the same time. If we do the proposals put forth tonight, that still
doesn’t get us quite ready to do the pottery and glassblowing, but it will get
us access to both the interior and exterior of the building. The interior has a
large room with a skylight that will be used as a multi-purpose room and
also has two back classrooms. He noted we could be opened as early as
mid-January 2009.
Assuming that all those items included in the proposed motion are done to
the building between now and January, Young asked what types of
programming could be accommodated and if those programs could be done
elsewhere in the City if the building isn’t completed. Lotthammer said
completing the two items would allow any type of painting, drawing,
sketching, photography, some type of light sculpture making, and small
metal jewelry making. He noted we would not expect to do a full five or
seven day a week schedule in the beginning. It has always been the plan to
scale it back in order to step into it. We would want to understand the
programs, and a three-day week with night time programs might work best
for that. In terms of what else is going on, the programs are more in the
after-school time slot, and the recent Community Education catalog has four
or five different classes. He said the Art Center will allow us to reach out to
the entire community and to all age groups and abilities.
CITY COUNCIL MINUTES
September 16, 2008
Page 5
Young asked about the types of interior remodeling contemplated in the
second motion. Lotthammer replied the area behind the garage door on the
building would be remodeled to a glass store-front feel, and that area would
be used for glassblowing. The doorway thresholds, doors and door handles
would be modified, and the second restroom facility would be added. We
would also change out the floor and do some painting. About one-third of
the overall expense is for the restroom and the accessibility features for the
doorways, and two-thirds is for the other interior work.
Young asked what the time horizon is for the interior work. Lotthammer
replied the contractor with the lowest quote is very anxious to start and
would likely be done in less than two months. Dan O’Brien, architect for
the Art Center, said he thought the 60-day time frame would be realistic for
the things that need to be done. The exterior store-front might have a longer
time frame, but that improvement isn’t time critical to the facility.
Young said one of the items we are talking about for both items is time.
When we accepted the building in April or May, he thought we made a
commitment to the creation of the Art Center. He said he would hold to that
commitment and will do what he can to make sure we honor it. One of the
things he has mixed feelings about is the parallel track issue. When we
discussed this in May he said he did not want to get married to an opening
date until we knew the results of the private fundraising. Of the two items
on the agenda tonight he thought the parking lot really isn’t something that
money can be raised for, but it is necessary to make sure the building is
usable. He said he tends to look at the parking lot differently, and he
thought it is something we should fund at this time.
You said as far as the interior improvements are concerned, it seemed to
him that we have a window of time and we don’t have to approve that
tonight if we are still expecting to open in January and we want to
encourage and induce private fundraising. It is much harder to raise money
for something after it is open, and he didn’t want to do anything to shut the
door for private fundraising. He was willing to support the installation of
the parking lot because he was concerned about pushing that project back
six months. He didn’t think we have reached the deadline date where we
need to put additional City dollars in for the interior improvements, and he
would like to wait to see how the fundraising is going.
Butcher said she intended to support both motions tonight because she saw
them as being very tightly woven. She felt we need a commitment to the Art
Center because it fulfills a long time dream in the community. She also felt
committed to prepare the building so we can use it publicly to the point
where people can see the space and realize there is a commitment to the
center. She would like the programs to begin as soon as possible because
that will be a boost for awareness and for the financial contributions. She
would like the building prepared to offer programs for kids in the summer.
She noted she has been a great supporter of this from the beginning.
CITY COUNCIL MINUTES
September 16, 2008
Page 6
Butcher asked if we have considered making the Art Center a 501c3 so we
could open up the whole notion of memberships which would help the
sustainability of the center. Lotthammer replied some of the Friends of the
Art Center have talked about that. The group committed to raise $500,000
to get the Art Center going, but they were not sure of their role in
maintaining the center after that. He thought it was critical to do these
improvements as soon as possible and support the grass roots movement for
the center. He said a 501c3 is quite a process. As the Friends of the Art
Center have become more organized, they have had a conversation about
starting a 501c3 down the road to augment programs that are there. He said
there are two ways to look at membership fees, one where there are
different levels of donations and the other where you buy a membership at
$30.00 per year to go towards the operations. The membership fee would
get an individual a percentage off the price of the classes, advance
registration and possibly other advantages. Butcher noted she thought that
would ameliorate some of the fear about whether we can continue this into
the future, and it is a tried and true model.
Nelson said she was very much in favor of going forward with the parking
lot and she had also reviewed previous minutes where we discussed using
Settlers Ridge money for this kind of thing. She has also had a number of
people call her after they read the articles in the Minneapolis Star-Tribune
and the local newspapers to say the City needs to show a commitment. She
thought it is important for the City to make an initial commitment, and there
are still a lot of things to raise money for. We have had the Art Center
donated to us and we have the initial contribution. She was in favor of doing
all the construction now because it is more difficult to do that while classes
are going on.
Young said neither the Hockey Association nor the Veterans Memorial
Committee built their structures and then tried to raise the money. He
thought there is a 60-day window for the interior remodeling so we won’t
necessarily lose the January deadline. He said he would need to see some
movement on the fundraising during that 60-day window.
Aho asked if they have any feel for what the program fees would bring in
versus what the operating expenses would be. Neal said we included a
number in the 2009 budget, and we estimated operating costs to be about
$114,000 and operating revenues to be $36,000, which is an $80,000
difference. Aho asked if there are some costs of just having the building and
keeping it there. Lotthammer said at that stage we are looking mainly at a
minimum level of utilities, lawn care and snow removal. The utilities were
estimated at $14,000 and the lawn care and snow removal estimates were
$10,000. The snow removal could be backed out if we didn’t use the
building, but we would still have to maintain the lawn whether we are in the
building or not. It would be in the $20,000 range even if it were not used.
CITY COUNCIL MINUTES
September 16, 2008
Page 7
Aho said he thought it is a good idea to commit to doing the parking lot
because that gives us the opportunity to open up in January, or later if we
choose. He would vote for doing the parking lot right now, but he would
also like to see that we open the Art Center fully when we open it. He
would like to shoot for the big picture and have it equipped like we would
want it to be. He would vote to do the interior improvements after we see
how the fundraising goes, and he would also want to do the interior the way
we want to see it.
Young thought we can decide to approve the projects up until November 1
and still maintain the January opening date because of the 60-day window.
At that time he would support the interior remodeling if the fundraising had
reached $80,000, which would cover the cost of the interior projects.
Duckstad asked if at any time previously the City took a survey or asked the
public what they would like to see in the Art Center before going ahead
with the improvements. Lotthammer said a formal City survey has not
happened. Based on resident feedback and people in the arts community, he
thought he could say with great confidence we will be able to put together a
good program. It will evolve in the future, and that will depend in part on
the quality and type of instructors attracted to the center. As soon as people
take programs they tell their friends so he could see the center growing and
morphing in that regard. We have a good base of knowledge to put a
program out there to gauge people’s interest. When the time is right we will
be there with a good promotion. He noted the Task Force and the Arts
Commission spent a fair amount of time on a model curriculum so there is a
very good basic plan in place.
Duckstad thanked the Sampson family for the wonderful gift and also
thanked the members of the fundraising committee for their work. He said
he personally supports the Art Center, but if the City is going to get into
paying for it, we have to be concerned about what our obligation is to the
taxpayers of the City and spend their money wisely. He supported the idea
of funding the Art Center with private donations. He also felt like we
weren’t married to any starting date, so we can make every effort to raise
significant money up front. He was concerned that if the City spends money
on the building, we will undercut the fundraising efforts. At this point
unless he sees a greater fundraising amount he was not interested in
selecting any deadline of when we should start the improvements. There is
an obligation to go forward with the Art Center, but there were conditions
that were attached.
Duckstad said he was concerned that the building is small, and it may be
practical at some point to sell the building and deposit the money for art-
related purposes and then at a future time put together an Art Center in a
fashion that we would believe would be a proper manner. He was reluctant
to commit taxpayers’ money at this time, partly in light of the current
economy with high gas prices, rising costs, and a waning stock market. He
CITY COUNCIL MINUTES
September 16, 2008
Page 8
was in favor of waiting and was not in favor of committing the City’s
money until there are further fundraising efforts.
Neal commented he thought the level of due diligence the City Council took
on this project in 2007 and 2008 was impressive. He said there are many
cities where if they had a $1,000,000 gift they would say thank you and
would think about how to take care of it later. Instead we appointed a Task
Force in January and asked them to study the issue whether we should
accept the gift and come back with a report that had the numbers in it. He
said Council Member Duckstad raises a good question that is important to
reflect on in that this building is not going to be all things to all people.
There were some early discussions on the Task Force about what could go
into this building. He thought the physical structure of the building and the
size and layout do not really create a good atmosphere for anything other
than applied arts. He said staff would appreciate the Council’s support for
both of these motions. He liked the idea of setting a target because that was
effective with the hockey initiative.
Nelson said Bloomington had a benefactor come forward, but Eden Prairie
also had a benefactor come forward with a $1,000,000 gift. We aren’t
talking about adding $1,000,000 for the Art Center. She said some
organizations may give specific gifts for items such as kilns and that should
be included within the $80,000 target. As long as that is understood she
thought that level is reasonable.
Young thought her comments were fair. Tonight his preference would be to
table the second motion until the first meeting in November. Neal noted
there is only one Council meeting in November on the 16th because of the
General Election. Young said we could table the motion until the 2nd
meeting in October, and if it appears at that time we are reasonably close to
$80,000 in capital commitments, he would then support going forward with
the interior improvements.
Duckstad asked if he proposed to table one or both motions. Young said to
just table the second one. Duckstad said he would be in favor of tabling
both motions.
Butcher asked if it was correct we would not be able to use the building
until the second restroom, and the thresholds and doors are improved.
Lotthammer said until the second restroom, the thresholds and doorways are
done, we cannot have public meetings there. Butcher questioned whether it
made sense to expand the parking lot for a building that we will not be able
to have the public into.
Young said he was prepared today to act upon the parking lot because there
is a deadline for that. If there is a window of 60 days for the interior, we
don’t have the same deadline for the interior improvements. He said we
made a commitment to try to accomplish many of the capital improvements
CITY COUNCIL MINUTES
September 16, 2008
Page 9
with private fundraising but we are dealing with this on a timeline faster
than he had in mind. He thought we need an inducement for the fundraising,
so he wanted to table the second motion and see what happens.
Aho thought we are not married to any particular opening start date, but we
are tied to getting the parking lot done now before the snow flies in order to
have the option to open in January. He would like to see it opened more
fully than just doing a bare minimum. He thought people have responded
well to projects like this.
MOTION: Nelson moved, seconded by Butcher, to award the construction
contract for Site Improvements to Parrott Contracting, Inc. in the amount of
$91,675 for construction of a new 26 car parking lot and associated site work
at the Eden Prairie Art Center. Motion carried 4-1-0, with Duckstad
opposed.
MOTION: Butcher moved, seconded by Nelson, to award the contract for
Art Center building remodeling to Doran Construction. Motion failed 2-3-
0, with Aho, Duckstad and Young opposed.
Rosow suggested submitting a new motion to bring the second item back at
the October 21 Council meeting.
MOTION: Aho moved, seconded by Duckstad, to bring back the motion to
award the contract for Art Center building remodeling to the second meeting
in October in order to review the status of fundraising at that time. Motion
carried 5-0.
VI. MINUTES
A. COUNCIL WORKSHOP HELD TUESDAY, SEPTEMBER 2, 2008
MOTION: Duckstad moved, seconded by Nelson, to approve the minutes of the
Council Workshop held Tuesday, September 2, 2008, as published. Motion carried
5-0.
B. CITY COUNCIL MEETING HELD TUESDAY, SEPTEMBER 2, 2008
MOTION: Butcher moved, seconded by Duckstad, to approve the minutes of the
City Council meeting held Tuesday, September 2, 2008, as published. Motion
carried 5-0.
VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS
VIII. CONSENT CALENDAR
A. CLERK’S LICENSE LIST
CITY COUNCIL MINUTES
September 16, 2008
Page 10
B. ADOPT RESOLUTION NO. 2008-90 APPROVING FINAL PLAT OF
TECHNOLOGY CAMPUS 4TH ADDITION
C. ADOPT RESOLUTION NO. 2008-91 APPROVING CONSTRUCTION
COOPERATIVE AGREEMENT NO. PW 16-49-08 WITH HENNEPIN
COUNTY FOR RE-CONSTRUCTION OF CSAH 1 (PIONEER TRAIL),
FROM EAST OF FLYING CLOUD DRIVE TO WEST OF SHETLAND
ROAD, I.C. 04-5631
D. ADOPT RESOLUTION NO. 2008-92 DECLARING COSTS TO BE
ASSESSED AND ORDERING PREPARATION OF SPECIAL
ASSESSMENT ROLL AND SETTING HEARING DATE
E. APPROVE REPLACEMENT OF WETLAND AGREEMENT AND FILING
OF DECLARATION OF RESTRICTIONS AND COVENANTS FOR TWO
CITY-OWNED OUTLOTS WITHIN SETTLERS WEST
F. APPROVE COMMUNITY CENTER CATERING SERVICES AGREEMENT
WITH DAVANNI’S
G. APPROVE PURCHASE OF NEW CRASH RESCUE TRUCK FROM E-ONE
MANUFACTURING
H. APPROVE SALE OF FIRE ENGINE 32 TO HENNEPIN TECHNICAL
COLLEGE IN EXCHANGE FOR TUITION CREDITS
I. AWARD CONTRACT FOR REPLACEMENT OF MARKET CENTER
CLOCK TOWER LIGHTING COMPONENTS TO SIGN CRAFTERS
J. APPROVE PLEASANT HILLS CEMETERY RULES AND REGULATIONS
MOTION: Butcher moved, seconded by Aho, to approve Items A-J on the
Consent Calendar. Motion carried 5-0.
IX. PUBLIC HEARINGS / MEETINGS
A. SURMODICS Request for: Planned Unit Development Concept Review on 9.80
acres, Planned Unit Development District Review on 9.80 acres, Zoning District
Amendment within the I-2 Zoning District on 9.80 acres, Site Plan Review on 9.80
acres, and Preliminary Plat on 9.80 acres into one lot. Location: Northeast corner of
74th Street West and Golden Triangle Drive (Resolution No. 2008-93 for Planned
Unit Development Review; Ordinance for PUD District Review; Resolution
No. 2008-94 for Preliminary Plat)
Neal said official notice of this public hearing was published in the September 11,
2008, Eden Prairie News and sent to 17 property owners. The property is zoned I-
2. An existing 63,390 sq. ft. building occupies the property. The project shows a
two phased development. Phase one consists of a 63,000 sq. ft. two-story addition,
CITY COUNCIL MINUTES
September 16, 2008
Page 11
and is the subject of this report. Phase two consists of demolishing 30,000 sq. ft. of
the original building and constructing a 60,000 to 80,000 sq. ft. addition west of
phase one.
Neal said the project conforms to the requirements of the I-2 District. The 120-day
review period expires on December 18, 2008. The Planning Commission voted 7-0
to recommend approval at the September 8, 2008 meeting.
Neal said he and Mayor Young were part of a “meet and greet” at SurModics not
long ago where we discussed their hope to expand in this state rather than another
state. Our staff had a subsequent meeting with their staff and representatives at the
state level. This project represents an expansion of this business as well as this
industry, and the project will create the kind of jobs people in Minnesota want to
have.
Young commented we are very excited about it and he did enjoy the meeting.
There were no comments from the audience.
MOTION: Butcher moved, seconded by Duckstad, to close the Public Hearing; to
adopt Resolution No. 2008-93 for Planned Unit Development Concept Review on
9.8 acres; to approve 1st Reading of the Ordinance for Planned Unit Development
District Review and Zoning Amendment in the I-2 District on 9.8 acres; to adopt
Resolution No. 2008-94 for Preliminary Plat on 9.8 acres into 1 lot; to direct Staff
to prepare a Development Agreement incorporating Staff and Commission
recommendations and Council conditions; and to authorize staff to issue grading,
footing, and foundation permits to SurModics to proceed with construction at their
own risk. Motion carried 5-0.
X. PAYMENT OF CLAIMS
MOTION: Duckstad moved, seconded by Aho, to approve the Payment of Claims as
submitted. The motion was approved on a roll call vote, with Aho, Butcher, Duckstad,
Nelson and Young voting “aye.”
XI. ORDINANCES AND RESOLUTIONS
A. FIRST READING OF ORDINANCE AMENDING CITY CODE SECTION
2.22 RELATING TO BUDGET ADVISORY COMMISSION TERMS
Neal said City Code Section 2.22 deals with the “Terms of Appointment” for City
Commissions. This section of the code has been amended so that all current
Budget Advisory Commission (BAC) terms end on December 31, 2008, and new
terms begin on January 1, 2009.
Neal said for terms starting January 1, 2009, the Council shall appoint four
members to four-year terms ending December 31, 2012, and three members to two-
year terms, ending December 31, 2010. Thereafter, following expiration of the
three (3) terms ending December 31, 2010, the term of such positions shall be four
CITY COUNCIL MINUTES
September 16, 2008
Page 12
(4) years. For the terms that commence on January 1, they shall continue for the
terms appointed and until the member’s successor has been appointed and
qualified. The Council may, but need not, appoint a person for the unexpired
position of the term of a member whose membership has become vacant. No
person may be appointed to more than two full consecutive terms, except by
unanimous vote of the Council. He said this is the first reading of an ordinance that
incorporates the discussions and feedback from the Council at a workshop and a
report he prepared in August.
Butcher asked him to address the question of why the start date for the BAC
members is different than the other commissions. Neal replied when we had our
discussion with the Council we talked a lot about the sequence of events in our
budget process and how bringing on new BAC members in April really puts them
four months behind in the timeline we have to deal with our budget. The budget
timelines are not fully under our control because we have statutory requirements to
meet from the State and from Hennepin County. To delay the appointment and
seating of new BAC members really hamstrings them in their ability to do their job.
He noted this creates a little bit of additional process work on behalf of staff, but
we think it will be worth it. We have a marketing campaign ready to launch
tomorrow to begin the process of recruitment if the Council approves this tonight.
He would like the City Council to have a short interview process sometime in
October, appoint them in November, and have them attend budget “boot camp” in
December.
Nelson said one of the things that occurred to her with these four-year terms is that
someone who completes two terms on the BAC would have been on the
commission for eight years, or almost the equivalent of three full three-year terms.
She asked if we have considered having at least four votes required for the Council
vote on appointment of an individual to a second term. Young said he understood
her concern that it doesn’t fit squarely into our process, but he was comfortable
with the way the ordinance currently reads. Neal said we sought input from the
current BAC members, and we did not have any feedback from them on that point.
Staff proposed the consistency in the two-term issue.
MOTION: Aho moved, seconded by Duckstad, to approve first reading of an
Ordinance amending City Code Section 2.22 relating to Budget Advisory
Commission terms. Motion carried 5-0.
XII. PETITIONS, REQUESTS AND COMMUNICATIONS
XIII. APPOINTMENTS
XIV. REPORTS
A. REPORTS OF COUNCILMEMBERS
B. REPORT OF CITY MANAGER
C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR
CITY COUNCIL MINUTES
September 16, 2008
Page 13
D. REPORT OF PARKS AND RECREATION DIRECTOR
E. REPORT OF PUBLIC WORKS DIRECTOR
1. Acquisition of Permanent and Temporary Easements for Singletree
Lane Improvements (Resolution No. 2008-95)
Dietz said in conjunction with the Windsor Plaza project we negotiated that
Windsor Plaza would reconstruct Singletree Lane between Eden Road and
Flying Cloud Drive at their expense. Our cost would be to acquire any
additional right-of-way necessary from KinderCare and Bremer Bank. We
have received the appraisals, and this resolution authorizes us to make
offers to them for the amount of the appraisals. It also authorizes acquisition
pursuant to the exercise of the power of eminent domain if the property
cannot be acquired though the negotiation process.
Nelson said she assumed the Bremer Bank portion is a very small chunk of
land while KinderCare is a somewhat larger one. She asked what impact
that will have on their facility and if it is possible they would turn it down.
Dietz replied we have had discussions with them, but it is possible they will
turn us down. He said it is impactful to the site because we need about ¾ of
an acre, and we would have to acquire 4,000 square feet of the play area
between Singletree and their front door. This offer would compensate them
for damages and for relocating the play area. He noted there are possible
alternatives for this such as easements. He said we will begin the
negotiation process and report back how we are doing. He thought this was
an on-point appraisal that recognizes the damages that are occurring but
keeps the facility viable.
Young asked if they have expressed any opinion that by this acquisition the
facility would not be operable. Dietz said it is possible to acquire the entire
site, but we cannot condemn the entire site. Young then asked if this issue
will come back to the Council before we initiate any condemnation
proceedings. Dietz said this allows us to extend an offer and if we can
negotiate something they would sign it and we would bring it back for
approval.
Duckstad asked if the $170,000 value was based on a real estate report.
Dietz said it was.
MOTION: Aho moved, seconded by Duckstad, to adopt Resolution No.
2008-95 authorizing the Director of Public Works to extend offers to
Bremer Bank and Knowledge Learning Corporation (KinderCare) for
acquisition of property including temporary easements for the improvement
of Singletree Lane and further authorizing the Director of Public Works and
the City Attorney to commence eminent domain proceedings if the property
interests cannot be acquired through negotiation. Motion carried 5-0.
CITY COUNCIL MINUTES
September 16, 2008
Page 14
F. REPORT OF POLICE CHIEF
G. REPORT OF FIRE CHIEF
H. REPORT OF CITY ATTORNEY
XV. OTHER BUSINESS
XVI. ADJOURNMENT
MOTION: Butcher moved, seconded by Duckstad, to adjourn the meeting. Motion
carried 5-0. Mayor Young adjourned the meeting at 8:50 PM.
CITY COUNCIL AGENDA
SECTION: Consent Calendar
DATE:
October 7, 2008
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.
Cigarette & Tobacco Products
Grand St. Paul CVS, LLC
DBA: CVS/pharmacy #3562
8251 Columbine Road
Commercial Kennel
Shayshaw Corporation
DBA: Central Bark Doggy Day Care
6340 Industrial Drive
Private Kennel
Mary Lou Carlson – 5 dogs
Doug & Kathy Ohlendorf – 5 dogs
Melissa Mak – 3 dogs
Raffle
Organization: Hunger Solutions Minnesota
Place: MN Vikings Field House
Date: October 20, 2008
Temporary Liquor
Organization: Hearts and Hammers Inc
Event: Works of Heart Fundraiser
Date: October 18, 2008
Place: The GEM Group, 7090 Shady Oak Road
New Liquor License (New Ownership)
Licensee name: Timber Lodge Steakhouse Acquisition, LLC
DBA: Timber Lodge Steakhouse
16396 Wagner Way
Amendment to Liquor License
2AM Closing Permit - Renewal
Champps Operating Corporation
DBA: Champps Americana
- 1 -
CITY COUNCIL AGENDA
SECTION: Consent Calendar
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Ric Rosow, City Attorney
ITEM DESCRIPTION:
Second Reading of Ordinance Amending
City Code Chapter 2.22 Relating to Terms
of Appointment for City Commissions
ITEM NO.: VIII.B.
Requested Action
Move to: Approve second reading of an Ordinance amending City Code Section 2.22 relating to
Budget Advisory Commission terms and adopt Resolution approving summary publication.
Synopsis
City Code Section 2.22 deals with the “Terms of Appointment” for City Commissions. This
section of the code has been amended so that all current Budget Advisory Commission terms end
on December 31, 2008, and new terms begin on January 1, 2009.
For terms starting January 1, 2009, the Council shall appoint four members to four-year terms
ending December 31, 2012, and three members to two-year terms, ending December 31, 2010.
Thereafter, following expiration of the three (3) terms ending December 31, 2010, the term of
such positions shall be four (4) years. For the terms that commence on January 1, they shall
continue for the terms appointed and until the member’s successor has been appointed and
qualified.
The Council may, but need not, appoint a person for the unexpired position of the term of a
member whose membership has become vacant. No person may be appointed to more than two
full consecutive terms, except by unanimous vote of the Council.
Attachments
Ordinance
Resolution
Summary Ordinance
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. ______-2008
AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA AMENDING CITY
CODE SECTION 2.22 TO EXPIRE ALL TERMS ON THE BUDGET ADVISORY
COMMISSION ON DECEMBER 31, 2008, ESTABLISH NEW STAGGERED TERMS FOR
MEMBERS OF THE BUDGET ADVISORY COMMISSION AND ADOPTING BY
REFERENCE CITY CODE CHAPTER 1 AND SECTION 2.99, WHICH AMONG OTHER
THINGS, CONTAIN PENALTY PROVISIONS.
THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS:
Section 1. City Code Section 2.22, Subd. 3 entitled, “Terms of Appointment” is amended
as follows:
a.). Add to the beginning of the first sentence the words “Except for the Budget
Advisory Commission,” and change the word “the” to lower case.
b.) Add to the end of Section 2.22, Subd. 3 the following:
The terms of members of all members of the Budget Advisory Commission shall expire
December 31, 2008. Thereafter all terms shall commence on January 1 and shall continue for the
terms appointed and until the member’s successor has been appointed and qualified. For the term
starting January 1, 2009 the Council shall appoint four (4) members to a four (4) year term
ending December 31, 2012 and three (3) members to a two (2) year term ending December 31,
2010. Thereafter, following expiration of the three (3) terms ending December 31, 2010, the term
of such positions shall be four (4) years. The Council may, but need not appoint a person for the
unexpired position of the term of a member whose membership has become vacant. No person
may be appointed to more than two (2) full consecutive terms, except by unanimous vote of the
Council.
Section 2. City Code Chapter 1 entitled “General Provisions and Definitions
Applicable to the Entire City code Including Penalty for Violations” and Section 2.99 entitled
“Violation a Misdemeanor” are hereby adopted in their entirety, by reference, as though repeated
verbatim herein.
Section 3. 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 16th
day of September, 2008, and finally read and adopted and ordered published at a regular meeting
of the City Council of said City on the 7th day of October, 2008.
____________________________________ ____________________________________
City Clerk Mayor
PUBLISHED in the Eden Prairie News on the _____day of__________________, 2008.
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2008-
A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE NO. 22-2008 AND
ORDERING THE PUBLICATION OF SAID SUMMARY.
WHEREAS, Ordinance No. 22-2008 was adopted and ordered published at a regular
meeting of the City Council of the City of Eden Prairie held on the 7th day of October, 2008;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF EDEN PRIARIE, THAT THE CITY COUNCIL FINDS, DETERMINES, AND
ORDERS AS FOLLOWS:
A. The text of Summary of Ordinance No. 22-2008, attached hereto as Exhibit A
conforms to Minn. Stat. § 331A.01, subd. 10, and is approved, and publication of
the title and Summary of Ordinance will clearly inform the public of the intent
and effect of the Ordinance.
B. The title and summary shall be published once in the Eden Prairie News in a body
type no smaller than brevier or 8 point type.
C. A printed copy of the Ordinance shall be made available for inspection for any
person, during regular business hours, at the offices of the City Clerk, and a copy
of the entire text of the Ordinance shall be posted in the City offices.
D. Ordinance 22-2008 shall be recorded in the Ordinance Book, along with proof of
publication, within twenty (20) days after said publication.
ADOPTED by the City Council on October 7, 2008.
______________________
Phil Young, Mayor
ATTEST:
______________________
Kathleen Porta, City Clerk
PUBLISHED in the Eden Prairie News of the _______ day of ____________, 2008.
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
SUMMARY OF ORDINANCE NO. -2008
AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA AMENDING
CITY CODE SECTION 2.22 TO EXPIRE ALL TERMS ON THE BUDGET
ADVISORY COMMISSION ON DECEMBER 31, 2008, ESTABLISH NEW
STAGGERED TERMS FOR MEMBERS OF THE BUDGET ADVISORY
COMMISSION AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND
SECTION 2.99, WHICH AMONG OTHER THINGS, CONTAIN PENALTY
PROVISIONS.
The following is only a summary of Ordinance No. ___-2008. The full text is available
for public inspection by any person during regular business hours at the office of the City
Clerk:
The ordinance amends Section 2.22, Subd. 3 of the City Code by expiring the terms of all
members of the Budget Advisory Commission on December 31, 2008. Thereafter, terms
shall commence on January 1st and shall continue for the appointed term and until a
member’s successor is appointed and qualified. The ordinance provides for staggered
terms as of January 1, 2009. After December 31, 2010, the term for all members shall be
four (4) years. The ordinance adopts by reference City Code Chapter 1 and Section 2.99,
which among other things, contain penalty provisions.
Effective Date: This ordinance shall become effective from and after its passage and
publication.
ATTEST:
_______________________________ ______________________________
Kathleen Porta, City Clerk Phil Young, Mayor
PUBLISHED in the Eden Prairie News on the ____ day of _____________, 2008.
CITY COUNCIL AGENDA
SECTION: Consent Calendar
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Office of City Manager
Kathleen Porta, City Clerk
ITEM DESCRIPTION:
Resolution Approving Appointment of Election
Judges & Student Election Judges for the General
Election
ITEM NO.: VIII.C.
Requested Action
Adopt the resolution approving the appointment of election judges and student election judges
for the November 4, 2008, General Election.
Synopsis
These judges are in addition to the ones approved at the August 5, 2008, City Council meeting.
State Statute 204B.21, Subd.2 requires appointment of election judges by the City Council at
least 25 days before the election.
Attachment
Resolution
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2008-97
WHEREAS, Minnesota Election Law 204B.21 requires that persons serving as election
judges be appointed by the Council at least 25 days before the election.
BE IT RESOLVED by the City Council of the City of Eden Prairie that the following
persons have agreed to serve as election judges, student judges, or alternate judges and are appointed
for the General Election to be held November 4, 2008.
BE IT FURTHER RESOLVED that the City Clerk is with this, authorized to make any
substitutions or additions as deemed necessary.
Edward Armstrong
Linda Baillie
Lester Boatman
Robert Buchholz
Courtney Christenson
Melinda Desmarais
Joseph Dupont
Tonya Fitzgerald
Jeffrey Fletcher
Bryan Hanson
Susan Hedberg
Mary Holt
Leroy Jedlicka
Marybeth Johnson
Alvin Krause
Veronica Lundeen
Wendy Meyers
James Miller
Kristen Nelson
Victoria Nipper
Darrel Olson
Sally Olson
Matthew Pellowski
Stephen Slocum
Karen Schendel
Beth Schrader
Mary Scott
Susan Strauss
LeaAnn Thielman
Julie Toskey
Linda Wallace
Maurice Weiler
Maureen Williamson
Lea Worcester
Mary Wyckoff-Harcus
Barbara Ziemer
Students
Vallari Ajgaonkar
Andrew Baker
Keely Brennan
Tara Brooke
Tyler Burkhardt
Catherine Christenson
Jennifer Crist
Erin Cummings
Angelica Deibel
Lauren Dezenski
Vassily Em
Katherine Estall
Ann Farrell
Katie Froehle
Sam Gotham
Erik Haag
Claire Hamilton
Christopher Hancock
Eric Hanson
Sallie Harris
Katherine
Hermanson
Elizabeth Hustad
Maggie Hysjulien
Suad Jama
Katy Johnson
Kyle Johnson
Berit Johnson
Kory Kautz
Christopher Kline
Zachary Krumm
Spencer Lasley
Amanda Ling
Adam Liter
Kyle McMonigal
John Moen
Andrew Moss
Joseph Orner
Allison Parker
Lynn Perszyk
Daniel Polta
Sophie Pouliquen
Daniel Pylipow
Prasad Raman
Jesse Russell
Terrence Tan
Julia Wang
Dave Weaver
Ning Yang
Nina Zeng
Jessica Zuck
ADOPTED by the Eden Prairie City Council on this 7th day of October 2008.
ATTEST:
______________________________ ______________________________
Kathleen Porta, City Clerk Phil Young, Mayor
CITY COUNCIL AGENDA
SECTION: Consent Agenda
DATE:
October 7, 2009
DEPARTMENT/DIVISION:
Sue Kotchevar, Office of the
City Manager
ITEM DESCRIPTION:
Approve Identity Theft Prevention Program
ITEM NO.: VIII.D.
Requested Action
Move to: Approve Identity Theft Prevention Program.
Synopsis
Federal regulations require the City of Eden Prairie to establish an Identity Theft Prevention
Program designed to detect, prevent, and mitigate identity theft. Entities that maintain transaction
accounts for customers, including utilities, must comply with the regulations. Staff does not
expect operational changes due to the implementation of the program.
Attachment
Identity Theft Program
FACT Act Identity Theft Prevention Program
Summary
Federal regulations require the City of Eden Prairie (“City”) to establish an Identity Theft Prevention
Program (“Program”), designed to detect, prevent, and mitigate identity theft. The Program must
include the identification of Red Flags that are relevant to the City’s customer accounts, the detection
of Red Flags, and the mitigation of and/or response to detected Red Flags. The following Program is to
be administered by the FACT Act Officer, which is designated as the Finance Manager of the City.
The FACT Act Officer shall see that the appropriate personnel receive training to properly implement
the Program. The FACT Act Officer shall report at least annually to the City Council on the status of
the Program. Finally, the FACT Act Officer shall periodically reassess the City’s risks of identity theft
and the ability of Program to address that identity theft and, if necessary, modify the Program.
I. Definitions
A “Red Flag” means a pattern, practice, or specific activity that indicates the possible existence of
identity theft.
A “covered account” means a continuing relationship established by a person for personal, family,
household or business purposes that involves or is designed to permit multiple payments or
transactions.
“Identity Theft” means a fraud committed or attempted using the identifying information of another
person without authority.
“Service provider” means a third party that provides a service directly to, or behalf of the City.
II. Identifying Relevant Red Flags
The City will consider the following risk factors in identifying relevant Red Flags for its covered
accounts, as appropriate:
1. The types of covered accounts it offers or maintains;
2. The methods it provides to open its covered accounts;
3. The methods it provides to access its covered accounts; and
4. Its previous experiences with identity theft.
The City will incorporate Red Flags from sources such as:
1. Incidents of identity theft that the City has experienced;
2. Methods of identity theft that the City has identified that reflect changes in identity theft risks;
and,
3. Applicable supervisory guidance.
The Categories of Red Flags will include but are not limited to:
1. The presentation of suspicious documents;
2. The presentation of suspicious personal identifying information, such as a suspicious address
change;
3. The unusual use of, or other suspicious activity related to, a covered account; and,
4. Notice from customers, victims of identity theft, law enforcement authorities, or other persons
regarding possible identity theft in connection with covered accounts.
Red Flags that the City will consider are included in Section VII of this Identity Theft Prevention
Program. This list will be updated with new Red Flags as they are detected by the City over time.
III. Detecting Red Flags
The City will incorporate procedures for the detection of Red Flags in connection with the opening of
new accounts by:
1. Obtaining identifying information of a person prior to opening an account.
2. Such identifying information may include, among others, the use of the customer’s name and
address.
3. The City will continue to detect Red Flags for existing accounts by monitoring transactions for
suspicious activity.
IV. Responding to Red Flags
The City will document an appropriate response to each Red Flag the City has detected, commensurate
with the degree of risk posed. In determining an appropriate response, the City will consider factors
that may heighten the risk of identity theft. Those factors include unauthorized access to a customer’s
account records or notification that a customer has provided information to someone fraudulently or to
a fraudulent website. Appropriate responses may include the following:
1. Monitoring a covered account for evidence of identity theft;
2. Contacting the customer;
3. Changing any passwords, security codes, or other security devices that permit access to a
covered account;
4. Reopening a covered account with a new account number;
5. Not opening a new covered account;
6. Closing an existing covered account;
7. Not attempting to collect on a covered account or not selling a covered account to a debt
collector;
8. Notifying the Attorney General of the State of Minnesota; or,
9. Determining that no response is warranted under the particular circumstances.
V. Methods for Administering the Program
The City Council is ultimately responsible for the Identity Theft Prevention Program. The FACT Act
Officer is responsible for the day-to-day administration and oversight of the Program. The FACT Act
Officer is expected to:
1. Assign specific responsibility for the Program’s implementation;
2. Review, prepare and provide at least annually, reports on the City’s compliance with the
Identity Theft Prevention compliance program, the effectiveness of the policy and procedures,
significant incidents involving identity theft and the City’s response; and recommendations for
material changes to the Program;
3. Obtain from the City Council approval of changes to the procedures and approval of policy as
necessary to address changing identity theft risks;
4. Train appropriate staff in the detection of Red Flags and the responsive steps to be taken when
a Red Flag is detected; and,
5. Whenever the City engages a service provider to perform an activity in connection with one or
more accounts, the FACT Act Officer will ensure that the activity of the service provider is
conducted in accordance with reasonable policies and procedures designed to detect, prevent,
and mitigate the risk of identity theft. For example, the City could require the service provider
by contract to have policies and procedures to detect relevant Red Flags that may arise in the
performance of the service provider’s activities, and either report the Red Flags to the City, or
to take appropriate steps to prevent or mitigate identity theft.
VI. Updating the Program
The City will update the Program (including the Red Flags determined to be relevant) periodically to
reflect changes in risks to customers or to the safety and soundness of the City from identity theft,
based on factors such as:
1. The experiences of the City with identity theft;
2. Changes in methods of identity theft;
3. Changes in methods to detect, prevent, and mitigate identity theft;
4. Changes in the types of accounts that the City offers or maintains; and,
5. Changes in the business arrangements of the City, including joint ventures, and service
provider or service provider arrangements.
VII. Identity Theft Prevention Program Red Flags
The City’s Identity Theft Prevention Program will include but not be limited to the following Red
Flags, which shall be updated as necessary and determined by the FACT Act Officer:
Suspicious Documents
1. Documents provided for identification appear to have been altered or forged.
2. Information in the document is not consistent with information previously provided by the person
when opening a new account.
3. An application appears to have been altered or forged, or gives the appearance of having been
destroyed and reassembled.
Suspicious Personal Identifying Information
1. Personal identifying information provided by the customer is not consistent with other personal
identifying information provided by the customer.
2. Personal identifying information provided is associated with known fraudulent activity as indicated
by internal or third-party sources used by the City. For example:
a. The address on an application is the same as the address provided on a fraudulent application;
or
b. The phone number on an application is the same as the number provided on a fraudulent
application.
Unusual Use of, or Suspicious Activity Related to, the Covered Account
1. The City is notified by a customer, a victim of identity theft, a law enforcement authority, or any
other person that it has opened a fraudulent account for a person engaged in identity theft
2. Mail sent to the customer is returned repeatedly as undeliverable although transactions continue to
be conducted in connection with the customer’s covered account.
3. The City is notified that the customer is not receiving account statements.
4. The City is notified of unauthorized charges or transactions in connection with a customer’s
covered account.
VIII. Specific Program Elements and Confidentiality
For the effectiveness of Identity Theft prevention Programs, the federal regulations envision a
degree of confidentiality regarding the City’s specific practices relating to Identity Theft detection,
prevention and mitigation. Therefore, under this Program, knowledge of such specific practices are to
be limited to appropriate City employees who need to know them for purposes of preventing Identity
Theft. Because this Program is to be adopted by a public body and thus publicly available, it would be
counterproductive to list these specific practices here. Therefore, only the Program’s general red flag
detection, implementation and prevention practices are listed in this document.
P:\Home\1606.087\Documents\Identity Theft Prevention Program - draft - 09 16 2008.doc
CITY COUNCIL AGENDA
SECTION: Consent Calendar
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Rodney Rue
Public Works / Engineering
ITEM DESCRIPTION: I.C. 96-5405
Approve Change Order No. 3 for the
CSAH 4 and Valley View Road
Intersection Improvements
ITEM NO.: VIII.E.
Requested Action
Move to: Approve Change Order No. 3 for the CSAH 4 and Valley View Road Intersection
Improvements, in the amount of $5,507.03.
Synopsis
This Change Order includes two (2) supplemental agreements that were prepared and approved
by Hennepin County’s Construction Division. The City’s share for this Change Order is
$2,251.15.
Background Information
This project involves re-constructing three legs of this intersection, with double left-turn lanes on
CSAH 4 (Eden Prairie Road) and a four-lane section on Valley View Road. The City of Eden
Prairie is the contracting agency, with Hennepin County’s Construction Division providing the
construction administrative services. This project is financed with State Aid funds.
Attachments
• Change Order No. 3
• Supplemental Agreements Nos. 7 & 8
October 7, 2008
CHANGE ORDER NO. 3
Project: CSAH 4 (Eden Prairie Road) & Valley View Road Intersection Improvements
City Project No. 96-5405
Contractor: Valley Paving, Inc.
8800 13th Avenue E.
Shakopee, MN 55379
Owner: City of Eden Prairie / Hennepin County
Construction Engineer: Hennepin County Transportation Department, Construction Division
Hennepin County’s Construction Division is providing the construction engineering for this project.
They have prepared and approved two (2) additional Supplemental Agreements with Valley Paving, Inc.
Since the City of Eden Prairie is the contracting agency with Valley Paving, Inc., we also need to
approve the following changes:
Supplemental Agreement No. 7
Description of extra work: Signal head relocations to accommodate temporary traffic lanes during
various construction phases. Following is the lump sum cost of this extra work:
Item Unit Qty Unit Price Amount
Relocate Signal Heads LS 1 $913.39 $913.39
Contractor Markup 10% $91.34
TOTAL for SA #7 $1,004.73
Change Order No. 3
I.C. #96-5405
Page 2 of 2
Supplemental Agreement No. 8
Description of extra work: The contractor was required to install Davit Arm with Luminaire to the
signal pole located in the northeast corner of the intersection. Following is the estimated cost of this
extra work:
Item Unit Qty Unit Price Amount
Davit Arm with Luminaire Each 1 $4,093.00 $4,093.00
Contractor Markup 10% $409.30
TOTAL for SA #8 $4,502.30
Original Contract Amount $1,694,930.86
Total Additions – Change Order No. 1 $ 35,770.38
Total Additions – Change Order No. 2 $ 6,638.38
Total Additions – Change Order No. 3 $ 5,507.03
Contract Amount To-date $1,742,846.65
The Supplemental Agreements Nos. 7 and 8 have been approved and accepted by Hennepin County and
Valley Paving, Inc. (see attached Supplemental Agreements).
THE ABOVE CONTRACT CHANGES ARE APPROVED:
CITY OF EDEN PRAIRIE
By By
Mayor City Manager
Date Date
SUPPLEMENTAL AGREEMENT
HENNEPIN COUNTY
TRANSP ORATION DEPARTMENT
CONSTRUCTION DIVISION
SUPPLEMENTAL AGREEMENT NO. 07
CONTRACT NO.
COUNTY PROJECT NO. 9726
S.A.P. 27-604-14
COUNTY STATE AID HIGHWAY 4
LOCATION: CSAH 4 and Valley View Road
Intersection in the City of Eden Prairie
CLASS OF WORK: Grading, Concrete Curb &
Gutter, Storm Sewer, Traffic Signal, and
Bituminous Surfacing
CONTRACTOR: Valley Paving, Inc.
8800 13 th Avenue E.
Shakopee, MN 55379
This Contract is amended as follows:
WHEREAS: This contract provides for, among other things, grading, bituminous surfacing, staged
construction, and installation of a temporary signal system; and
WHEREAS: The plans and specifications showed three construction phases; and
WHEREAS: The plans showed detailed wiring diagrams and location of signal heads for the
temporary signals for two of the stages; and
WHEREAS: The plans did not show the signal locations for the third stage; and
WHEREAS: It was 'necessary to move the signal heads to provide a safe controlled intersection; and
WHEREAS: The contractor was required to move the signal heads for stage 3.
NOW THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS:
L The—contractor_shall mo_v_e_the_signal heads_toinatch the location of the temporary traffic lanes.
2. The contractor will provide the necessary traffic control to work in the intersection..
3. Payment for the above said work shall be by the unit prices as shown below under the Estimate of
C ost.
4. Contract time will not be adjusted except as provided in Mn/DOT Specification 1806.
1
5. The contractor shall not make claim of any kind or character whatsoever for any other costs or
expenses which he may have incurred or which he may hereafter incur in performing the work and
furnishing the materials required by this agreement.
6. Except as provided herein, all terms and conditions in said contract thereto shall remain in full force
and effect.
ESTIMATE OF COST
Unit
Item No. Item Unit
Qy
Price Amount
2565.601/ Relocate Signal Heads LS 1
$ 913.39 $ 913.39
01000
2565.602/ Contractor Markup 10% Each
80000
1 $ 91.34 $ 91.34
Total for SA 7 $1,004.73
Cost Distribution: Group 1 — 100% Hennepin County
2
Approved as to forrp and execution:
By: By:
This foregoing instrument was acknowledged before me on 4/1 & 5 /8 , 2008
by Richard A. Carun PresidentandTreasurer
Notary Public iinf i l
w"4"1/201 0
nc .
t
My commission expires
CAROL J. JOHNSON-KADRILIK
NOTARY PUBLIC. MINNESOTA
My Commission Expires Jan. 31, 2010
Contractor, having signed this contract, and the County having duly approved this contract on
, 2005, pursuant to such approval and the proper County official having signed this
contract, the parties hereto agree to be bound by the provisions herein set forth.
COUNTY OF HENNEPIN
STATE OF MINNESOTA
istant County Attorney
Date: 41 7/0 Si
RecommeOed for approval:
By:
Project Engineer
VALLEY PATTIN_,
By
Its .: Ar-arTA. Carron, Pres .
VALLEY PAVING, INC.
STATE OF MINNESOTA )
) ss.
COUNTY OF SCOTT )
3
Construction Engineer
HENNEPIN COUNTY TRANSPORTATION DEPARTMENTS
CONSTRUCTION DIVISION
ROAD CSAH 4 PROJECT 9726
RECORD OF AUTHORIZATION TO PROCEED WITH SUPPLEMENTAL AGREEMENT
Nature of and reason for revision:
ACTIVITY: The plans called for the project to be constructed in three phases which required traffic to be
shifted. The plans were specific in the number of traffic shifts required. However, plans were developed
showing the location of the temporary signal heads for two of the phases. It was necessary to revise the
location of the signal heads a third time.
JUSTIFICATION: It was necessary to revise the signal head locations to provide traffic control in
accordance with standard practice. If the signal head locations were not changed, traffic would be confused
as to location of turn lanes and when to make turning movements.
FINANCIAL IMPLICATION: The estimated cost is $1,100.00. The cost is 100% County.
Estimated Amount: $1,100.00
Increase: X Decrease:
Method of Payment: Force Account X , Negotiated Price
Lump Sum , Unit Bid Price , Other
Date
Zfa2 /o7
Date
SUPPLEMENTAL AGREEMENT
HENNEPIN COUNTY
TRANSP ORATION DEPARTMENT
CONSTRUCTION DIVISION
SUPPLEMENTAL AGREEMENT NO. 08
CONTRACT NO.
COUNTY PROJECT NO. 9726
S.A.P. 27-604-14
COUNTY STATE AID HIGHWAY 4
LOCATION: CSAH 4 and Valley View Road
Intersection in the City of Eden Prairie
CLASS OF WORK: Grading, Concrete Curb &
Gutter, Storm Sewer, Traffic Signal, and
Bituminous Surfacing
CONTRACTOR: Valley Paving, Inc.
8800 13 th Avenue E.
Shakopee, MN 55379
This Contract is amended as follows:
WHEREAS: This contract provides for, among other things, grading, bituminous surfacing, staged
construction, and installation of a signal system; and
WHEREAS: The plans and specifications showed the location for four signal poles and mast arms; and
WHEREAS: The plans showed that davit arms with luminaries to be installed on three signal poles;
and
WHEREAS: Hennepin County standard design is to have davit arms with luminaries installed at four
corners of the intersection; and
WHEREAS: The plans showed that two detector cameras were tobe attached to one davit arm; and
WHEREAS: Hennepin County standard design is to have one detector camera per davit arm; and
WHEREAS: The Contractor was directed to order a davit arm and luminaire and attach it to a signal
pole; and
WHEREAS: The Contractor was directed to attach a detector camera to the new davit arm.
NOW THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS:
1. The contractor shall order a davit arm and luminaire and attach it to the signal pole located in the
north east corner of the intersection.
2. The contractor will attach a detector camera to the new davit arm.
1
3. Payment for the above said work shall be by the unit price as shown below under the Estimate of
Cost.
4. Contract time will not be adjusted except as provided in Mn/DOT Specification 1806.
5. The contractor shall not make claim of any kind or character whatsoever for any other costs or
expenses which he may have incurred or which he may hereafter incur in performing the work and
furnishing the materials required by this agreement.
6. Except as provided herein, all terms and conditions in said contract thereto shall remain in full force
and effect.
ESTIMATE OF COST
Item No. Item
2565.602/ Luminaire Arm
00072
Unit
Unit
Price Amount
$ 4,093.00 $ 4,093.00 Each
2565.602/ Contractor Markup 10% Each 1 $ 409.30 $ 409.30
80000
Total for SA 8
$4,502.30
Cost Distribution: Group 1 — 50% Hennepin County (SAP 27-104-14)
37.5% Eden Prairie (SAP 181-020-25)
12.5% Eden Prairie (SAP 181-109-05
2
Approved as to forms
istant County Attorney
Date: q(17/0
Approved as to execu
t-
tant County Attorney
RECOMMENDED FOR APPROVAL:
;7
6t4-, By:
By:
Project Engineer
- Director, Transportation Department and
County Engineer
For Funding Approval Only:
By:
Metro District State-Aid Engineer
arron
as
Notary Public
My commission ex
3
qichard A. Carr w President and Treasurer
CAROLI JOHNSON-KADRILIK
NOTARY PUBLIC - MINNESOTA
My Commission Expires Jan 31, 2010
Contractor, having signed this contract, and the County having duly approved this contract on
, 2004, pursuant to such approval and the proper County official having signed this
contract, the parties hereto agree to be bound by the provisions herein set forth..
COUNTY OF HENNEPIN
STATE OF MINNESOTA
By:
Assistant COlifity Administrator, Public Works
D ate
STATE OF MINNESOTA
DEPARTMENT OF TRANSPORTATION
Date:
VALLEY PAVING, I
By :
t81-4rd A. Carron
It s: President
VALLEY PAVING, INC.
STATE OF MINNESOTA)
) ss.
COUNTY OF SCOTT
4 /1 This foregoing instrument was acknowledged before me on , ;008 & 5/8
HENNEPIN COUNTY TRANSPORTATION DEPARTMENTS
CONSTRUCTION DIVISION
ROAD CSAH 4 PROJECT 9726
RECORD OF AUTHORIZATION TO PROCEED WITH SUPPLEMENTAL AGREEMENT #8
Nature of and reason for revision..
ACTIVITY: The plans called for the installation of a new signal system at the CSAH 4 and Valley View
Road intersection. Signal poles were installed at the four corners. However, davit arms with street light
luminaries and camera detection were shown to be installed on three signal poles. The plans showed that two
cameras were to be installed on the davit arm ii the north west quadrant. Hennepin County requested that a
davit arm be installed on the fourth signal pole and one of the two cameras be relocated to the new davit arm.
JUSTIFICATION: Hennepin County's standard practice is to have a davit arm with street light luminaries
on four corners of an intersection.
FINANCIAL IMPLICATION: The estimated cost is $4,550.00. The cost will be paid with 50%
Hennepin County and 50% Eden Prairie's funds.
Estimated Amount: $4,550.00
Increase: X
Decrease:
Method of Payment: Force Account X , Negotiated Price
Lump Sum , Unit Bid Price , Other
Date
Requested By:
Project Engineer
Recoded BY:
CITY COUNCIL AGENDA
SECTION: Consent Calendar
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Leslie A. Stovring
Public Works / Environmental
ITEM DESCRIPTION: I.C. 07-5698
Approve Plans and Specifications and Order
Advertisement for Bids for stabilization of
two areas with severe erosion within the
Lower Minnesota River Watershed District.
ITEM NO.: VIII.F.
Requested Action
Move to: Approve plans and specifications and order advertisement for bids for I.C. 07-
5698, Lower Minnesota River Watershed District Erosion Stabilization Project.
Synopsis
Lower Minnesota River Watershed District has requested that the City partner with the District
to stabilize and restore four (4) areas that have eroded within the Minnesota River valley. This
proposal is for Study Areas 1 and 2. With the assistance of SRF Consulting Group, Inc., the
Engineering Division has prepared plans and specifications for stabilization of Study Areas 1 and
2 within the Lower Minnesota River Watershed District (LMRWD). LMRWD has reviewed and
approved the plans.
Background Information
LMRWD completed an assessment of streams and channels tributary to the Minnesota River in
2007. Requests for assistance to evaluate and assist in the stabilization of these areas were sent
to those cities where problems were found. Four Study Areas were selected in Eden Prairie for
the initial phase of work.
Study Areas 1 and 2 are located immediately south of Flying Cloud Drive and extend south of
Riverview Road. The project will consist of repairing, clearing, and stabilizing two areas that are
experiencing severe erosion. The erosion is threatening the stability of Riverview Road and is
considered to be a high priority area by LMRWD. Both drainage areas are characterized by
high-gradient slopes, impervious roadway corridors and residential development that allow
virtually no attenuation of stormwater runoff or watershed storage, leading to the erosion now
occurring.
Study Area 1 is located approximately 0.6 miles east of the roadway intersection of Riverview
Road and Flying Cloud Drive. The area downstream of Riverview Road has been severely
eroded due to the presence of sandy soils and concentrated discharge of stormwater from a 30-
inch corrugated metal pipe (CMP) storm sewer line below Flying Cloud Drive and a 36-inch
CMP centerline culvert immediately downstream of Riverview Road. The 30-inch CMP extends
approximately 512 feet north of the gully to a box culvert under Flying Cloud Drive that has
been bulkheaded. The centerline culvert conveys stormwater to the gully generated from the
local drainage area. Further slope erosion would likely endanger the Riverview Road
embankment and roadway. Mitigation will include repair and extension of the stormwater lines,
backfill and stabilization of side slopes and construction of a small riprap basin at the outlet to
further reduce the energy of the stormwater discharge. The channel banks would be graded and
stabilized.
Study Area 2 is located approximately 0.17 miles east of the roadway intersection of Riverview
Road and Flying Cloud Drive. The drainage area is conveyed through a box culvert that crosses
under Flying Cloud Drive and flows into a drop structure. This water then drains through an
eroded gully to Riverview Road where there is a 30-inch CMP that carries the high-velocity
discharge under the Riverview Road embankment and outlets approximately 10 feet above the
channel bottom. The slopes are continuing to erode due to undercutting of the banks, which are
nearly-vertical. Mitigation would include installation of a new drop structure, extension of the
piped outlet to the original toe of Riverview Road, restoration of the embankment and
construction of a riprap basin at the outlet of the storm sewer system to further reduce the energy
of the stormwater discharge.
Project Schedule
Construction is anticipated to begin in April 2009 with completion by October 2009, depending
on weather conditions.
Financial Implications
The anticipated construction cost for the project is $119,000. Lower Minnesota River Watershed
District has agreed to reimburse the city 50% of the costs, up to a maximum of $59,000. The
remainder will be paid out of the stormwater utility fund.
CITY COUNCIL AGENDA
SECTION: Consent Calendar
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Leslie Stovring
Public Works / Environmental
ITEM DESCRIPTION: IC# 07-5698
Award Contract for Study Area 4 –
Lower MN River Watershed District
Erosion Stabilization Project
ITEM NO.: VIII.G.
Requested Action
Move to: Award Contract for Study Area 4 of the Lower Minnesota River Watershed District
Erosion Stabilization Project to MN Native Landscapes, in the amount of $97,545.00
Synopsis
Bids were received on Monday, September 29, 2008 for Study Area 4 of the Erosion
Stabilization Project within Lower Minnesota River Watershed District (LMRWD). Seven bids
were received and are tabulated as follows:
Minnesota Native Landscapes $97,545.00
Veit $98,181.70
GF Jedlicki, Inc. $101,432.00
Sunram Construction $107,209.40
Nadeau Excavating $142,499.00
Stocker Excavating, Inc. $144,303.00
Background Information
LMRWD completed an assessment of streams and channels tributary to the Minnesota River in
2007. Requests for assistance to evaluate and assist in the stabilization of these areas were sent
to those cities where problems were found. Four Study Areas were selected in Eden Prairie for
the initial phase of work. Study Area 4 is located immediately south of Riverview Road within
Purgatory Creek. The project area includes a 420-foot reach of Purgatory Creek that is
experiencing severe streambank erosion. If left alone, the conditions would likely accelerate
downstream streambank instabilities which already exist. The creek erosion is threatening the
stability of an adjacent wetland and is considered to be a high priority area by LMRWD.
The scope of work includes returning the Creek to its original meander by utilizing a vegetated
geogrid system together with boulder vanes designed to closely emulate the natural stream
system and aesthetic while providing a permanent solution to erosion in this area. Debris
clearing and minor channel shaping would be used to ensure the Creek will not re-meander due
to future obstructions that may enter the waterway.
Lower Minnesota River Watershed District has agreed to reimburse the city 50% of the costs, up
to a maximum of $75,000. The remainder will be paid out of the stormwater utility fund.
Attachments
• SRF Letter of Recommendation
Wtli CONSULTING GROUP,
ENGINEERS I PLANNERS I DESIGNERS
MINNEAPOLIS
FARGO
MADISON
SRF No. 0076205
September 30, 2008
Honorable Mayor and City Council
CITY OF EDEN PRAIRIE
8080 Mitchell Road
Eden Prairie, MN 55344
Dear Mayor and Members of the Council:
SUBJECT: PURGATORY CREEK BANK STABILIZATION
CITY OF EDEN PRAIRIE IMPROVEMENT CONTRACT NO. 07-5698
Sealed bids were received for the referenced project on Monday, September 29, 2008 at Eden
Prairie City Hall. A total of six (6) bids were received. All bids have been reviewed and
checked and are tabulated in the enclosed bid abstract. In addition, the bidder's qualifications for
this type of project have been reviewed.
Two bidders, G.F. Jedlicki, Inc. and Stocker Excavating, Inc., were disqualified for not
submitting the required Bidder's Questionnaire with the bid proposal. The enclosed bid
summary shows how the bids received compared with the Engineer's Estimate. The low bid is
below the Engineer's Estimate at the time of bid.
After reviewing the bids packets, we recommend awarding the contract to the lowest bidder,
Minnesota Native Landscapes, Inc., in the amount of $97,545.00.
Sincerely,
SRF CONSULTING GROUP, INC.
Ryan T. Jones, P.E.
Senior Engineer
Enclosures
cc: Leslie Stovring, City of Eden Prairie
HAProjects\6205\WR\DOC\Letter of Bid Award.doc
www.srfconsulting.com
One Carlson Parkway North, Suite 150 I Minneapolis, MN 55447-4443 I 763.475.0010 Fax: 763.475.2429
An Equal Opportunity Employer
CITY COUNCIL AGENDA
SECTION: Public Hearing
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Sue Kotchevar, Office of the
City Manager
ITEM DESCRIPTION: Approve Senior
Multifamily Housing Development Housing
Program in City of Bloomington and Grant
Preliminary Approval to Issuance of Revenue
Obligations to Finance the Senior Multifamily
Housing Redevelopment
ITEM NO.: IX.A.
Requested Action
Move to: Adopt a Resolution Approving a Housing Program Relating to a Senior Multifamily
Housing Development to be Located in the City of Bloomington; Grant Preliminary Approval to
the Issuance of Revenue Obligations by the City to Finance the Senior Multifamily Housing
Redevelopment; and Approve Authorizing Certain Related Actions
Synopsis
The attorneys representing Bloomington Bethany Senior Housing, Inc., a Minnesota non-profit
approached City staff requesting help with financing a senior project in Bloomington. The
project is for a 182 unit senior living community located at 6820 Auto Club Road in
Bloomington. In order for the City of Eden Prairie to have authority to issue the debt, there must
be a nexus of the project to Eden Prairie. The market research report shows the project will
benefit City of Eden Prairie residents as a housing option. Presbyterian Homes is one of the
investors in the project. The total bond issuance amount is $29,700,000 and the City of Eden
Prairie debt issuance amount will be no more than $6,000,000. Other participants providing
project financing include Hennepin County Housing and Redevelopment Authority, City of
Burnsville, MN Economic Development Authority, and the City of Bloomington, MN Housing
and Redevelopment Authority.
Attachments
Resolution
Housing Program
Market Feasibility Study
Bloomington Resolution
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2008-
APPROVING A HOUSING PROGRAM RELATING TO A SENIOR
MULTIFAMILY HOUSING DEVELOPMENT TO BE LOCATED IN THE CITY
OF BLOOMINGTON; GRANTING PRELIMINARY APPROVING TO THE
ISSUANCE OF REVENUE OBLIGATIONS BY THE CITY TO FINANCE THE
SENIOR MULTIFAMILY HOUSING DEVELOPMENT; AND APPROVING
AND AUTHORIZING CERTAIN RELATED ACTIONS
BE IT RESOLVED By the City Council of the City of Eden Prairie, Minnesota (the “City”) as
follows:
Section 1. Findings
Pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes,
Chapter 462C, as amended (the “Act”), cities and other political subdivisions of the State of Minnesota
are authorized to carry out the public purposes described therein and contemplated thereby in the
financing of multifamily housing developments by issuing revenue bonds to defray, in whole or in part,
the development costs of the multifamily housing development, and by entering into any agreements
made in connection therewith and by pledging any such agreements as security for the payment of the
principal of and interest on any such revenue bonds.
A multifamily housing development financed under the Act may consist of a multifamily housing
development combined with a new or existing health care facility if: (i) the multifamily housing
development is designed and intended to be used for rental occupancy; (ii) the multifamily housing
development is designed and intended to be used primarily by elderly or physically handicapped persons;
and (iii) nursing, medical, personal care, and other health-related, assisted-living services are available on
a 24-hour basis in the multifamily housing development to the residents.
Bloomington Bethany Senior Housing, Inc., a Minnesota nonprofit corporation (the “Company”),
has requested the participation of the City in the financing of the acquisition, construction, and equipping
of a senior multifamily housing development consisting of a 182-unit senior living community consisting
of 99 independent-living units, 66 assisted-living units, and 17 memory-care units (the “Project”) to be
located at 11501 Hampshire Road, 11551 Hampshire Road, and 11601 Hampshire Road in the City of
Bloomington, Minnesota (“Bloomington”).
The City is authorized and empowered, pursuant to the Act, to carry out the public purposes
described therein by financing, in whole or in part, the cost of the acquisition, construction,
reconstruction, improvement, betterment, or extension of a multifamily housing development located in
another city of the State of Minnesota when authorized by such other city under the Act, Minnesota
Statues, Section 471.656, as amended, and Minnesota Statutes, Section 471.59, as amended.
Pursuant to the requirements of Section 462C.04 of the Act, a Housing Program for a Multifamily
Housing Development (the “Housing Program”) with respect to the Project and the issuance of revenue
obligations by the City to finance the Project in accordance with the terms of the Housing Program has
been prepared and is on file with the City.
1
The total cost of the Project will be approximately $36,700,000. Additional financing for the
Project is expected to be provided from the proceeds of revenue bonds issued under the Act by the
Housing and Redevelopment Authority in and for the City of Bloomington, Minnesota (the “Bloomington
HRA”), the Hennepin County Housing and Redevelopment Authority (the “Hennepin County HRA”),
and the Burnsville Economic Development Authority (the “Burnsville EDA”). The revenue bonds of the
Hennepin County HRA are expected to be issued in a principal amount not to exceed approximately
$9,750,000. The revenue bonds of the Bloomington HRA are expected to be issued in a principal amount
not to exceed $10,000,000. The revenue bonds of the Burnsville EDA are expected to be issued in a
principal amount not to exceed approximately $5,000,000.
On October 7, 2008, the City conducted a public hearing on the Housing Program, the Project,
and the issuance of revenue obligations by the City, notice of which hearing (the “Public Notice”), was
published as required by Minnesota Statutes, Section 462C.04, subdivision 2, of the Act, and
Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”). The Public Notice
provided a general, functional description of the Project, as well as the maximum aggregate face amount
of the obligations to be issued for the purposes referenced above, the identity of the initial owner,
operator, or manager of the Project, and the location of the Project. The Public Notice was published in
the Eden Prairie News, a newspaper circulating generally in the City, on September 18, 2008, a date at
least fifteen (15) days before a meeting of the City Council of the City on October 7, 2008. The City
Council of the City conducted a public hearing at which a reasonable opportunity was provided for
interested individuals to express their views, both orally and in writing, on the Project and the proposed
issuance of such revenue obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN
PRAIRIE, MINNESOTA THAT:
Section 1. Preliminary Approval of Issuance of Revenue Obligations by the City.
1.01 Preliminary approval is hereby granted to the issuance of revenue obligations by the City
(the “Bonds”) in the approximate aggregate principal amount not to exceed $6,000,000 to finance the
Project, subject to final approval following the preparation of bond documents, and subject to final
determination by this Council that the financing of the Project and the issuance of the Bonds are in the
best interests of the City. The principal amount of the Bonds shall be limited to an amount which, when
added to the principal amount of general obligation bonds to be issued by the City in calendar year 2008,
will not exceed $10,000,000 in order to ensure that both the general obligation bonds of the City and the
Bonds may be designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the
Code.
1.02 The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon
any property of the City except the City’s interest in the loan or revenue agreement with respect to the
Bonds and the Project. The Bonds, when, as, and if issued, shall recite in substance that the Bonds are
issued pursuant to the Act and the Bonds, including interest thereon, are payable solely from the revenues
derived from the Project and property pledged to the payment thereof, and shall not constitute a general or
moral obligation of the City and shall not be secured by the taxing powers of the City.
Section 2. Housing Program. The Housing Program was submitted to the Metropolitan Council
for its review and comment. All comments received from the Metropolitan Council were presented to the
City Counsel on or prior to the public hearing.
2
Section 3. Compliance with the Act. Based on representations of the Company set forth in a
Term Sheet prepared with respect to the financing of the Project on file with the City and based on
representations set forth in a Market Feasibility Study (February 2008) prepared by Maxfield Research
Inc. at the direction of the Company regarding the Project on file with the City, it is hereby found and
determined that the Project furthers the purposes set forth in the Act and the Project constitutes a
“multifamily housing development” within the meaning of the Act.
Section 4. Bond Counsel. The law firm of Kennedy & Graven, Chartered is authorized to act as
bond counsel and to assist in the preparation and review of necessary documents relating to the Bonds.
The Mayor, City Manager, and other officers, employees, and agents of the City are hereby authorized to
assist Bond Counsel in the preparation of such documents.
Section 5. Documents Furnished to Bond Counsel. The Mayor, City Manager, and other officers
of the City are authorized and directed to furnish to Kennedy & Graven, Chartered, as bond counsel,
certified copies of all proceedings and records of the City relating to the Housing Program and such other
affidavits, certificates, and other documents as may be required by bond counsel to show the facts relating
to the legality of the Housing Program and related documents, as such facts appear from the books and
records in the custody and control of such officers or as otherwise known to them; and all such certified
copies, certificates, affidavits, and other documents, including any heretofore furnished, shall constitute
representations of the City as to the truth of all statements contained therein.
Section 6. Costs. The Company has agreed to pay or reimburse, directly or through the City, any
and all costs incurred by the City in connection the issuance of the Bonds, whether or not the Bonds are
issued and the operative instruments are executed and delivered. The Company has also agreed to pay the
administrative fee of the City in the event the Bonds are issued.
Section 7. Expiration. All commitments of the City expressed herein are subject to the condition
that by December 31, 2008, the City, the Company, and the initial purchaser of the Bonds will have
agreed to mutually acceptable terms and conditions of the loan or revenue agreement, the Bonds, and the
other instruments and proceedings relating to the Bonds, and that on or before such date the Bonds shall
have been sold and issued. If the events set forth herein do not take place prior to such date, or any
extension thereof, and the Bonds are not sold within such time, this resolution will expire and be of no
further effect.
Section 8. Rights of the City. The adoption of this resolution does not constitute a guaranty or
firm commitment that the City will issue the Bonds as requested by the Company. The City retains the
right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue
the Bonds in an amount less that the amount referred to herein, should the City at any time prior to
issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the
Bonds in an amount less than the amount referred to in Section 1 hereof, or should the parties to the
transaction be unable to reach agreement as to the terms and conditions of any of the documents required
for the transaction.
(The remainder of this page is intentionally left blank.)
3
4
Section 9. Effective Date. This Resolution shall be in full force and effect from and after its
passage this 7th day of October, 2008.
ADOPTED by the City Council on October 7, 2008.
______________________
Phil Young, Mayor
ATTEST:
______________________
Kathleen Porta, City Clerk
CITY OF EDEN PRAIRIE, MINNESOTA
HOUSING PROGRAM FOR A
MULTIFAMILY HOUSING DEVELOPMENT
Pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes,
Chapter 462C, as amended (the “Act”), cities and other political subdivisions of the State of Minnesota
are authorized to carry out the public purposes described therein and contemplated thereby in the
financing of multifamily housing developments by issuing revenue bonds to defray, in whole or in part,
the development costs of a multifamily housing development, and by entering into any agreements made
in connection therewith and by pledging any such agreements as security for the payment of the principal
of and interest on any such revenue bonds.
A multifamily housing development financed under the Act may consist of a multifamily housing
development combined with a new or existing health care facility if: (i) the multifamily housing
development is designed and intended to be used for rental occupancy; (ii) the multifamily housing
development is designed and intended to be used primarily by elderly or physically handicapped persons;
and (iii) nursing, medical, personal care, and other health related assisted living services are available on a
24-hour basis in the multifamily housing development to the residents.
Bloomington Bethany Senior Housing, Inc., a Minnesota nonprofit corporation (the “Company”),
has requested the participation of the City of Eden Prairie, Minnesota (the “City”), in the financing of a
portion of the cost of the acquisition and construction of a 182-unit senior living community consisting of
99 independent living units, 66 assisted living units, and 17 memory care units to be located at 11501
Hampshire Road, 11551 Hampshire Road, and 11601 Hampshire Road in the City of Bloomington (the
“Project”).
The City is authorized and empowered, pursuant to the Act, to carry out the public purposes
described therein by financing, in whole or in part, the cost of the acquisition, construction, and equipping
of multifamily housing developments located in the City and, pursuant to the provisions of Minnesota
Statues, Section 471.656, as amended, and Minnesota Statutes, Section 471.59, as amended, by financing,
in whole or in part, the cost of the acquisition, construction, and equipping of multifamily housing
developments located in other cities in the State of Minnesota.
In accordance with the requirements of Section 462C.04 of the Act, the City must prepare and
approve a housing program and must submit the housing program to the Metropolitan Council for review
and comment. In accordance with the requirements of Section 462C.04, subdivision 2, of the Act the City
must: (i) establish a date for a public hearing with respect to the housing program and the proposal to
issue bonds pursuant to the terms of the housing program; (ii) publish a notice of a public hearing in a
newspaper of general circulation in the City at least fifteen (15) days prior to the date established for the
public hearing; and (iii) conduct the public hearing with respect to the housing program and the proposal
to issue bonds pursuant to the terms of the housing program.
This Housing Program for a Multifamily Housing Development (the “Housing Program”), has
been prepared at the request of the Company with respect to the Project in accordance with the terms of
the Act. The Project will be owned by the Company, and will be initially managed by Presbyterian
Homes Management and Services, Inc., a Minnesota nonprofit corporation. The representations herein
are based entirely on representations or other information provided to the City by or on behalf of the
Company, and the City has not independently investigated the accuracy thereof.
1
The total cost of the Project will be approximately $36,700,000. The revenue bonds proposed to
be issued by the City under the Act (the “City Bonds”) are expected to be issued in a principal amount not
to exceed approximately $6,000,000. Additional financing for the Project is expected to be provided
from the proceeds of revenue bonds issued under the Act by the Housing and Redevelopment Authority
in and for the City of Bloomington, Minnesota (the “Bloomington HRA”), the Hennepin County Housing
and Redevelopment Authority (the “Hennepin County HRA”), and the Burnsville Economic
Development Authority (the “Burnsville EDA”). The revenue bonds of the Hennepin County HRA (the
“HCHRA Bonds”) are expected to be issued in a principal amount not to exceed approximately
$9,750,000. The revenue bonds of the Bloomington HRA (the “Bloomington HRA Bonds”) are expected
to be issued in a principal amount not to exceed $10,000,000. The revenue bonds of the Burnsville EDA
(the “Burnsville EDA Bonds”) are expected to be issued in a principal amount not to exceed
approximately $5,000,000. The remainder of the costs of the Project are to be financed with Company
equity. The City, the Hennepin County HRA, the Bloomington HRA, and the Burnsville EDA are
collectively referred to herein as the “Issuers.” The City Bonds, the HCHRA Bonds, the Bloomington
HRA Bonds, and the Burnsville EDA Bonds are referred herein as the “Bonds.” The Bonds are required
to be issued on or before December 31, 2008. Proceeds of the Bonds will be applied to finance the costs
of the acquisition, construction, or equipping of the Project and the payment of all or a portion of the
costs of issuing the Bonds. A portion of the Bonds may also be used to finance one or more reserve funds
to secure the Bonds.
The City, in determining to undertake and finance the Project, has considered the information set
forth in a Market Feasibility Study (February 2008) prepared by Maxfield Research Inc. at the direction
of the Company regarding the Project now on file with the City and a Term Sheet prepared with respect to
the financing of the Project now on file with the City, and the City has determined that undertaking the
issuance of the City Bonds and the financing of a portion of the Project are in the best interests of the
public health, safety, and welfare of the people of the City.
Section A. Housing Program for Financing the Project. The City is establishing this Housing
Program to assist in financing the Project at a cost and upon such other terms and conditions as may be
determined by the City, the other Issuers, and the Company in accordance with the Act.
The Bonds will be secured by a pledge of the revenues and receipts to be derived by the
Company from the ownership of the Project. The Bonds are also anticipated to be secured by a mortgage
lien on the Project. However, in the event the revenues pledged to the Bonds are not sufficient to pay the
principal of and interest on the Bonds when due, neither the City nor the other Issuers will be required to
levy a tax to pay the principal of and interest on the Bonds when due. The Bonds will be special, limited
obligations of the respective Issuers and will not constitute general or moral obligations of the City or the
other Issuers.
Section B. Local Contributions to the Housing Program. The issuance of tax-exempt Bonds for
the Project is expected to allow the Issuers to finance the Project at a lower interest cost than is otherwise
available. The City believes the reduced financing cost will enhance the feasibility of the Project and
result in lower rental rates for use of the Project than might otherwise be charged.
2
3
Section C. Standards and Requirements Relating to the Financing of the Project Pursuant to the
Housing Program. The following standards and requirements shall apply with respect to the operation of
the Project:
(1) Substantially all of the proceeds of the sale of the Bonds will be applied to the
financing of the Project, the payment of costs of issuance, and the funding of appropriate
reserves. The resolutions authorizing the issuance of the Bonds and the loan agreements pursuant
to which the proceeds of the Bonds are to be loaned to the Company will include certain
covenants to be made by the Issuers and the Company regarding the use of proceeds, and by the
Company regarding the character and use of the Project.
(2) The Company will covenant that it will not arbitrarily reject an application from
a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or
status with regard to public assistance or disability.
(3) The Project will be occupied or held for occupancy by elderly persons.
(4) The Project is intended to be a “multifamily housing development” as defined in
Section 462C.02 of the Act.
Section D. Issuance of Obligations. The total cost of the Project will be approximately
$36,700,000 and the aggregate principal amount of the Bonds proposed to be issued by the Issuers will
not exceed $30,000,000. The estimated cost of financing the Project may change between the date of
preparation of this Housing Program and the date of issuance of the Bonds.
Section E. Severability. The provisions of this Housing Program are severable, and if any of its
provisions, sentences, clauses, or paragraphs shall be held unconstitutional, contrary to statute, exceeding
the authority of the City, or otherwise illegal or inoperative by any court of competent jurisdiction, the
decision of such court shall not affect or impair any of the remaining provisions.
Section F. Amendment. The City shall not amend this Housing Program while any of the City
Bonds are outstanding, to the detriment of the holders of such obligations. The City may amend this
Housing Program, to the extent authorized by law and the contractual obligations of the City, to the extent
the City deems such amendment to be in the best interests of the City, the Project, and the owners of the
City Bonds.
Section G. State Ceiling. The Bonds shall be issued as “qualified 501(c)(3) bonds” pursuant to
Section 145 of the Internal Revenue Code of 1986, as amended, the interest on which is not includable in
gross income for federal income tax purposes and which is not includable in taxable net income for
individuals, estates, and trusts for State of Minnesota income tax purposes (subject to certain
qualifications). None of the state ceiling for private activity bonds is required to be allocated to the
Bonds.
BL130-125 (JU)
339596v.2
A Market Feasibility Study for
Senior Housing in
Bloomington, Minnesota
Prepared for:
Bloomington Bethany Senior Housing, Inc.
St. Paul, Minnesota
February 2008
Research Inc.
615 First Avenue NE
Suite 400
Minneapolis, MN 55413
612.338.0012
MAXFIELD RESEARCH INC.
I
Jay Thompson
Vice President
xlield
RCS Cardi Inc.
4
May 28, 2008
Mr. Bob Van Slyke
Bloomin gton Bethan y Senior Housing , Inc.
2845 North Hamline Avenue, Suite 100
St. Paul, MN 55113
Dear Mr. Van Sl yke:
We are pleased to present our stud y titled "A Market Feasibilit y Study for Senior Housin g in
Bloomington, Minnesota."
The study reviewed the proposed concept, examined growth trends and demo graphic characteris-
tics of the senior population in the Bloomin gton Market Area, anal yzed the competitive situation
for senior housin g alternatives, and calculated demand for market rate senior housin g products.
Our finding s account for the demo graphic, competitive, and g eo graphic factors that impact de-
mand for senior housin g on the subj ect Site. In consideration of these factors, we find market
demand to support the 182-nnit senior housin g community that would include 99 con gre gate
units, 66 assisted livin g units and 17 memor y care units.
We have enj oyed completin g this study and are available should you have any further questions
or re quire additional information.
Sincerel y ,
Kristi Freibor g
Research Analy st
Attachment
612-338-0012 612-338-0012 (fax) 612-904-7979
615 First Avenue NE, Suite 400, Minneapolis, MN 55413
www .maxfieldresearch.com
TABLE OF CONTENTS
Page
STUDY IMPETUS AND SCOPE OF SERVICES 1
Study Impetus 1
Scope of Services 1
SITE ANALYSIS 2 Introduction 2
Site Location and Surrounding Land Uses 2
Proximity to Retail, Healthcare and Community Services 5
Access and Visibility 5
Appropriateness of Site for Senior Housing 6
DEMOGRAPHIC ANALYSIS 8 Introduction 8 Market Area Definition 8 Population and Household Growth Trends 10
Adult Population and Household Age Distribution and Trends 11
Older Adult Household Income Distribution 13
Senior Household Tenure 15 Home Values 16
Summary of Growth Trends and Demographic Characteristics 18
SENIOR HOUSING MARKET ANALYSIS 19 Introduction 19 Types of Senior Housing 19
Supply of Senior Housing in the Bloomington Market Area 21
Pending Senior Housing Developments 34
DEMAND CALCULATIONS 37 Introduction 37 Demand for Congregate Senior Housing 37 Demand for Assisted Living Senior Housing 39 Demand for Memory Care Senior Housing 41
RECOMMENDATIONS AND CONCLUSIONS 43 Introduction 43
Review of the Proposed Development Concept 43
Competitive Advantages of the Proposed Development 48 Projected Absorption 49
Marketing Considerations 49
LIST OF TABLES
Table Number and Title
Page
1. Population and Household Growth Trends and Projections, Bloomington Market
Area, 1990 to 2012
10
2. Older Adult (45+) Population & Household Age Distribution, Bloomington
Market Area, 1990 - 2012
12
3. Income Distribution by Age of Householder (55+), Bloomington Market Area,
2007 & 2012
14
4. Senior Household Tenure, Bloomington Market Area, 1990 and 2000
16
5. Home Sales—Single-family Homes, Build in 1985 or Before, Bloomington Market
Area, 2004 to 2007
17
6. Existing Congregate Senior Housing Projects, Bloomington Market Area,
January 2008
22
7. Unit Features/Building Amenities/Services, Existing Congregate Senior Housing
Projects, Bloomington Market Area, January 2008
24
8. Existing Assisted Living Senior Housing Projects, Bloomington Market Area,
January 2008
26
9. Unit Features/Building Amenities/Services, Existing Assisted Living Senior
Housing Projects, Bloomington Market Area, January 2008
28
10. Existing Memory Care Senior Housing Projects, Bloomington Market Area,
January 2008
31
11. Unit Features/Building Amenities/Services, Existing Memory Care Senior Housing
Projects, Bloomington Market Area, January 2008
33
12. Congregate Senior Housing Demand, Bloomington Market Area, 2007 & 2012 38
13. Assisted Living Demand, Bloomington Market Area, 2007 & 2012
40
14. Memory Care Demand, Bloomington Market Area, 2007 & 2012 42
15. Demand Summary, Bethany Bloomington Site, 2007 & 2012 43
16. Proposed Development Concept, Senior Housing Campus, Bloomington, Minnesota,
January 2008
44
STUDY IMPETUS AND SCOPE OF SERVICES
Study Impetus
Maxfield Research Inc. was engaged by Senior Housing Partners to assess the market potential
for a senior housing development by Bloomington Bethany Senior Housing, Inc. to be located in
Bloomington, Minnesota. Specifically, the proposed development was considered on a parcel
along Auto Club Drive.
Scope of Services
The scope of the study includes:
• Assessment of the appropriateness of the Site for the development of senior housing
products.
• Delineation of the primary draw (or "Market") area for senior housing products on the
subject Site.
• Analysis of demographic trends and characteristics that would impact the demand for se-
nior housing in the Market Area and specifically, on the subject Site.
• Survey of existing and pending competitive senior housing alternatives within the Market
Area. Impact of the competitive market is assessed as it would relate to the development
of additional product.
• Calculation of demand for senior housing alternatives in the Market Area and estimation
of the proportion of demand that could be captured by the proposed project.
• Review of and recommendations for the development concept, including:
• Number of units supportable at each respective service level;
• Unit mix and sizes;
• Suggested unit types/floor plans;
• Unit pricing; and
• Unit features and building amenities.
• Provision of marketing recommendations to increase the effectiveness of the marketing
campaign and to expedite the absorption period.
• Estimation of projected rate of absorption of the project.
This report includes both primary and secondary research. Primary research includes interviews
with rental property managers and other housing professionals. Secondary research is credited to
the source when used, and is used as a basis for analysis after a careful review of other factors
that may impact projections. All of the information on existing housing developments was ga-
thered by Maxfield Research Inc. and is accurate to the best of our knowledge.
MAXFIELD RESEARCH INC.
SITE ANALYSIS
Introduction
This section of the report assesses the characteristics of the Site as they relate to the appeal for
the proposed senior housing project in Bloomington, Minnesota. Maxfield Research Inc. visited
the Site in December 2007. A map of the site location is shown below.
Site Location
Site Location and Surrounding Land Uses
The parcel for the proposed senior housing development is located in southwestern Bloomington
along Auto Club Drive. It is situated to the immediate east of the existing Bethany College of
Missions, from which the development would acquire a portion of the campus property to be re-
developed into senior housing. In its existing state, the designated portion of the parcel is occu-
pied by campus housing, which would not remain after construction of the project, and the re-
maining portion is open space. The development would remain an immediate neighbor to the
campus, including the buildings of Bethany House Publishers and warehouse doc to the north as
well as some multifamily residential complexes to the west.
MAXFIELD RESEARCH INC. 2
SITE ANALYSIS
Northern view of Site from Auto Club Drive
Land Use West of Site — Residential Complex of Bethany College of Missions
The proposed Site is located approximately two miles east of Highway 169 at the northern inter-
section of Auto Club Drive and Hampshire Avenue. The Site is bordered to the east by a rail
line, beyond which is located Minnesota Valley Country Club. The land use to the south of the
Site is residential and also includes Izaak Walton League of America trails and nature center.
Multifamily and single-family housing occupies much of the land to the west beyond Bethany
College of Missions and to the east beyond Minnesota Valley Country Club.
MAXFIELD RESEARCH INC. 3
and Use to the North — Property Boundary to Existing Industrial Buildings
SITE ANALYSIS
Eastern Land Use — Rail Line and Minnetonka Valley Country Club
The northern land use is predominately industrial with a light mix of commercial buildings. In-
cluded in this area is General Parts, the immediate northern occupant, as well as Wair Products,
King Controls, and Braun Intertec. To the advantage of the Site, a separate access point exists
from Old Shakopee Road to the northern end of Hampshire Avenue, which mitigates industrial
traffic on the Site and limits traffic on the primary access roads that would be most traversed by
potential residents and their families. Potential aesthetic impact from the industrial land use is
accounted for in the preliminary Site plans; included in these plans are ponds in the northeast
corner that would limit views of the industrial buildings.
MAXFIELD RESEARCH INC. 4
SITE ANALYSIS
Proximity to Retail, Healthcare and Community Services
The ease of access to area retail, healthcare and community services is important to seniors and
adds to the marketability of the project overall. Although these services do not exist within
walking distance from the proposed Site, residents of a service-enhanced development have less
mobility and commonly utilize scheduled transportation to area services.
Several retail locations exist within a convenient driving distance from the proposed Site that
would offer senior residents an array of neighborhood goods and services. Locations include
France Avenue and Old Shakopee Road (3.5 miles east of the Site), Normandale Boulevard and
98 th Street (3.5 miles north of the Site), Highway 169 and Anderson Lakes Parkway (4 miles
northwest of the Site), and Highway 169 and Highway 18 (3.5 miles south of the Site). More
distant from the Site are Eden Prairie Center (6 miles northwest of the Site), Southdale Shopping
Center (8 miles north of the Site), and the Mall of America (11 mile northeast of the Site).
Access to healthcare is also available within a convenient driving distance from the proposed
Site location. The closest hospital to the Site would be Allina Medical and Fairview Southdale
of Edina. Additionally, Fairview Ridges of Burnsville is located about ten miles from the Site.
Several clinics surround these medical centers in each respective community, allowing the medi-
cal needs of seniors to be addressed within relative close proximity.
Access and Visibility
The Site is located about two miles east of Highway 169, which creates ease of transportation for
those traveling from the broader Metro Area. It is not, however, directly accessible from a major
thoroughfare in the area, which preserves the residential feel of the project but limits the accessi-
bility of the project somewhat. From Highway 169, individuals would likely exit on Old Shako-
pee Road and use less traveled residential roads, such as Normandale Boulevard to the west or
Bloomington Ferry Road to the east, to access Auto Club Drive.
Although the Site is located at the intersection of Hampshire Avenue and Auto Club Drive,
Hampshire Avenue is divided into two section—the northernmost section is accessible from Old
Shakopee Road and extends up to the northern border of the parcel and the southernmost section
extends through a portion of the Bethany College of Missions campus, which would be a primary
access point of the project. It remains advantageous to have these two portions separated, as the
project would have limited exposure to the industrial traffic with the existing right of way divi-
sion.
The residential location of the project limits both accessibility and visibility of the proposed
project somewhat. A multistory design would give the project some exposure from Old Shako-
pee Road but overall, the project has limited visibility to the larger area. Individuals residing in
or near the Site, who are also the primary market for the project, would be familiar with the loca-
tion. Potential visibility challenges for those unfamiliar with the location could be addressed in
the marketing campaign by strategically placing signs along Highway 169 and Old Shakopee
Road, which would inform the larger area of the development and location. Additional recom-
MAXFIELD RESEARCH INC.
SITE ANALYSIS
mendations to this end are included in the Conclusions and Recommendations section of this
study.
Primary Access Road — Auto Club Road West View
Appropriateness of Site for Senior Housing
The Site of the proposed project is appropriate for senior housing for several reasons:
• The Site is located in a predominately residential area, offering a serene setting with
scenic overlooks. These features are becoming increasingly uncommon on parcels clos-
er in to the core Metro Area, increasing the attractiveness of the project and the marketa-
bility overall.
• The location offers several advantages from the adjacent structures, including potential
access to some of the Bethany College for Missions services (i.e. bookstore, church, and
gym) as well as the trail system to the immediate south of the Site.
• The Site is conveniently located within a short driving distance to retail, healthcare, and
community services. We recommend provision of regular transportation to these loca-
tions to facilitate convenient use of area resources.
• The parcel is within a second-tier suburb that has been mostly developed for the past sev-
eral years. As the Twin Cities continue to expand outward, the Site will be located within
an increasingly central location that would be convenient for a growing number of poten-
tial residents and their families.
MAXFIELD RESEARCH INC. 6
SITE ANALYSIS
In summary, the Site location is appropriate for the development of the proposed project and
should be well received by people desiring senior housing alternatives in the Bloomington Mar-
ket Area.
IVIAXFIELD RESEARCH INC. 7
DEMOGRAPHIC ANALYSIS
Introduction
Demographic characteristics and trends are an important component in assessing the potential
demand for senior housing in any given market area. This section of the report examines key
factors related to the demand for senior housing. Included is a review of overall growth trends
and an analysis of the demographic composition of the older adult and senior population for the
area determined to be the primary draw area for senior housing in Bloomington.
Market Area Definition
Based on traffic and community orientation patterns, geographical and man-made barriers, draw
patterns at nearby senior housing communities, and our experience in senior housing feasibility,
we estimate that the primary draw, herein referred to as "Market Area," for senior housing on the
proposed Site would be derived from the City of Bloomington and neighboring communities in-
cluding Edina, Eden Prairie, Richfield and southern portions of Minneapolis. A map illustrating
the geographic areas included in the Bloomington Market Area is shown below.
Bloomington Market Area
MAXFIELD RESEARCH INC. 8
DEMOGRAPHIC ANALYSIS
This draw area is considered to be the geographic expanse from which the majority—we esti-
mated 70%—of demand for senior housing would come. The remaining portion of demand will
come from outside the defined Market Area. These potential residents will include people cur-
rently residing just outside the Market Area who have an orientation to the area (i.e., church,
doctor, etc.), people who once resided in the area but desire to move back to be near friends and
family, and parents of adult children living in the Market Area. These groups are estimated to
account for at least 30% of the total demand for market rate senior housing in the Market Area.
Based on the subject Site's location in southern Bloomington and the draw of other senior build-
ings in Bloomington, we project that about half of the demand that comes from outside the Mar-
ket Area will come from the communities of Shakopee, Savage, and Burnsville located in north-
ern Scott and Dakota Counties. These communities, shown as the Secondary Draw Area in the
map below, had a population of 101,903 in 2000. Strong growth in Shakopee and Savage is pro-
jected to propel the population to 132,800 in 2010 and 150,500 in 2020.
Because the Minnesota River is somewhat of a barrier, most of the seniors in this Secondary
Draw Area will first consider other senior housing developments in their respective communities
before considering a senior housing development north of the River in the primary Bloomington
Market Area. Thus, this study focuses on the demographic trends and market conditions solely
in the Bloomington Market Area, where the vast majority of demand for the proposed develop-
ment will be generated.
Secondary Draw Area
Chanhassen
.vhakohiq?. Seco n da rYi D ra 4Atea
R.I ifiek
BILOOM I N 0 N M A RET l:AR4
Prior ,hate.
.4pple
f
Eagan
MAXFIELD RESEARCH INC.
DEMOGRAPHIC ANALYSIS
Population and Household Growth Trends
Table 1 shows population and household growth trends and projections for the Bloomington
Market Area from 1990 to 2012. The data from 1990 and 2000 is from the U.S. Census Bureau,
while the 2010 and 2012 projections are calculated by Maxfield Research Inc. based on data ob-
tained from Claritas Inc., a nationally recognized provider of demographic projections.
The following points summarize overall population and household growth trends and projections.
• As of 2000, the Market Area contained 328,489 people and 139,817 households, which
represents an increase of 4.3% and 8.1% in the population and household bases, respective-
ly, over the previous decade.
• Some decline in population is projected from 2000 to 2007 as well as through 2012. De-
clining population is often projected for closer in suburbs due to the Metro Area expanding
outward and households relocating to outer ring suburbs.
TABLE 1
POPULATION AND HOUSEHOLD GROWTH TRENDS AND PROJECTIONS
BLOOMINGTON MARKET AREA
1990 to 2012
Claritas Inc.! Change
U.S. Census Maxfield Research 1990 to 2000 I I 2000 to 2012
990 2000 2007 2012 No NM No Pct.
Population
Bloomington 86,335 85,172 80,487 77,636 -1,163 -1.3 -7,536 -8.8
Eden Prairie 39,311 54,901 62,031 66,681 15,590 39.7 11,780 21.5
Edina 46,070 47,425 45,162 43,745 1,355 2.9 -3,680 -7.8
Richfield 35,710 34,439 33,450 32,917 -1,271 -3.6 -1,522 -4.4
Minneapolis (pt.) 78,121 76,078 73,051 71,268 -2,043 -2.6 -4,810 -6.3
Minnetonka (pt.) 29,453 30,474 29,688 29,232 1,021 3.5 -1,242 -4.1
Market Area Total 315,000 328,489 323,869 321,479 13,489 43 -7,010 -2.1
Claritas Inc.! Change
U.S. Census Maxfield Research 1990 to 2000 I I 2000 to 2012
1990 2000 2007 2012 No MI No rIEM
Households
Bloomington 34,488 36,400 35,378 34,653 1,912 5.5 -1,747 -4.8
Eden Prairie 14,447 20,457 23,291 25,049 6,010 41.6 4,592 22.4
Edina 19,860 20,996 20,342 19,857 1,136 5.7 -1,139 -5.4
Richfield 15,551 15,073 14,923 14,833 -478 -3.1 -240 -1.6
Minneapolis (pt.) 34,039 34,727 34,241 33,914 688 2.0 -813 -2.3
Minnetonka (pt.) 10,957 12,164 12,200 12,198 1,207 11.0 34 0.3
Market Area Total 129,342 139,817 40,375 140,504 10,475 8.1 687 0.5
Sources: U.S. Census (1990 & 2000); Claritas, Inc.; Maxfield Research Inc.
IVIAXFIELD RESEARCH INC. 10
DEMOGRAPHIC ANALYSIS
• Growth in the household base is expected to continue at a diminishing rate through 2012.
A growing household base in tandem with declining population is often due to an aging
population: senior households more often have only one person households compared to
two or more persons in younger households. Thus, growth in the senior age cohorts results
in a greater number of households.
Because the impetus of this study is to determine the demand for age-restricted housing, from this
point forward, our demographic analysis will focus on the Market Area's older adult and senior
population and household base.
Adult Population and Household Age Distribution and Trends
Table 2 shows the age distribution of the Bloomington Market Area's adult population and
household base in 1990 and 2000 with projections to 2012. The 1990 and 2000 figures are from
the U.S. Census and projections for 2012 were made by Claritas, Inc. Data supplied by Claritas,
Inc. is reviewed by Maxfield Research Inc. to ensure consistency with local growth trends and
patterns.
Broadly applied, senior housing without services attracts people ages 65 and over. With services
available, however, senior housing primarily attracts people ages 75 and over. Figures are in-
cluded for the 45 to 64 age group, as these individuals are the adult children who often are pri-
mary care givers for their elderly parents. Growth in the adult caregiver cohort will support de-
mand for service-intensive senior housing as some older seniors will move to senior housing de-
velopments that are located near their adult children.
The following are key trends observed in the distribution of the Market Area's adult population
and household base.
• Between 1990 and 2000, individuals age 55 and older increased twice as fast as the overall
population. While the overall population increased by just 4.3%, the number of individuals
within these age cohorts grew by nearly 6,100 people, an increase of 8.9%.
• The 75+ category exhibited very strong growth during the 1990s increasing by more than
6,200 people (37.9%). This growth was especially impressive considering that the State's
75+ population increased by only 18.2% during the same time period.
• Between 2000 and 2012, it is forecasted that the 55+ population will accelerate, increasing by
28.5%. The leading edge of the baby boom generation will age into their late 50s and early
60s and will cause these age categories to increase substantially during the 12-year period. In
comparison, the overall Market Area is projected to decrease by 7,010 people (2.1%).
• The senior age cohorts not expected to increase between 2000 and 2012 are those ages 70 to
84. In 2012, these age groups will consist primarily of persons born during the Depression, a
period of low birth rates, which explains the slower rate of growth.
MAXFIELD RESEARCH INC. 11
DEMOGRAPHIC ANALYSIS
TABLE 2
OLDER ADULT (45+) POPULATION & HOUSEHOLD AGE DISTRIBUTION
BLOOMINGTON MARKET AREA
1990-2012
A g e 1990
19,594
15,886
14,147
14,580
13;40
10,062
7,181
4,824
4,348
Number of Persons
2000
27,318
23,632
16;840
13,023
10,956
11,265
16,134
6,805
8,626
2012
25;115
26,803
' 25,459
21,640
15;399
10,928
,8,446
6,609
: 7,468
1990-2000
7,724 39:4%
7,746 48.8%
2,695 19.0%
-1,557 -10.7%
-2,40 -18 .3%
1,203 12.0%
2,947 41.0%
1,981 41.1%
1,278 29.4%
Chan. e
2000-2012
-1,985 '43%
3,171 13.4%
8,619 -51.2%
8,617 66.2%
. 4,443 '40%
-337 -3.0%
4;688 -16:1°1
-196 -2.9%
1,842 32:1%
45 to 49
50 to 54
55 to 59
60 to 64
.05 to 09 .
70 to 74
75 to 79
80 to 84
•.' 85 +
55+
Percent
65+
Percent
75+
Percent
68,551
21.8%
39;824
126%
16,359
5.2%
74,649
22.7%
44,180
.18.6%
22,565
6.9%
95,949
29.8%
• 48;86
;15.2%
22,523
7.0%
6,098 8.9%
' 4,962 .12:8%
6,206 37.9%
21,300 28.5%
4 ;064 9.1%
-42 -0.2%
Total:Pcip.- :, 3,15000[1. 328;489 :'..IP 321479 13,489f:::,:.:43%1"'-1'...-74010;; .,;21%
A. e
Number
1990 2000
of Households
2012 1990-2000
Chan .e
-2012, -..-... 2000„ ........_
45 to 54
65 to 74
75+: .
20,606
10,770
14,855
10,935
30,055
117,9I9
13,998
.15,489
.
55 to 64:: .
31,087
: .0,629
16,662
, 15,555
9,449 45.9%
21 3 7464
-857 -5.8%
.. :4554 - 4iNvo
1,032 3.4%
0;640 •$9..:1%
2,664 19.0%
55+
Percent
65+
PTCPPI .
75+
Percent
42,566
32.9%
.28:190
-9 .:9%
10,935
8.5%
47,476
34.0%
. .. 20;4$1
:.2.11%
15,489
11.1%
60,846
43.3%
32 ,217
..7.9%
15;555
11.1%
4,910 11.5%
3 ,697 14.0(;
4,554 41.6%
13,370 28.2%
2,1.0:. 93%
66 0.4%
TOtal;HII. 12934211 1398171
Sources: U.S. Census; Claritas, Inc.; Maxfield Research Inc.
• While the number of seniors age 75 to 84 is expected to decrease, the oldest age category
(85+) is projected to grow substantially, increasing by more than 1,840 people (32.7%) be-
tween 2000 and 2012.
• The number of households directly corresponds to the number occupied housing units and
thus, more accurately represents growth trends in demand for housing products. Between
1990 and 2000, the Market Area grew by 10,475 households (8.1%). This was slightly higher
than the overall population growth rate. In recent decades, due primarily to declining persons
per household and shifting household types, household growth rates generally exceed popula-
tion growth rates.
MAXFIELD RESEARCH INC. 12
DEMOGRAPHIC ANALYSIS
• Between 1990 and 2000, households age 45 to 54 increased by nearly 9,450 (45.9%), while
those 55 and older grew by 4,910 households (11.5%). The majority of growth in households
age 55 and older was among older households age 75 and older. The number of 75+ house-
holds increased by nearly 4,555 (41.6%) between 1990 and 2000.
• Between 2000 and 2012, households age 55 to 64 are expected to increase substantially, add-
ing 10,640 households (59.1%). In comparison, the Market Area's household base overall is
expected to only increase by 0.5 percent.
• Households age 65 to 74 are expected to increase by nearly 2,665 (19.0%), while growth
among households age 75 and older is expected to slow; growth in this cohort is projected for
only 0.4% through 2012.
The growth in the Market Area's older adult base is generated from aging residents who already
reside in the Market Area. A second portion of growth in these older adult and senior age co-
horts is derived from individuals who desire to move into the area. Additional residents to the
Market Area will primarily consist of previous residents with a preference for or association with
the area, those who will want to be near their adult children, and seniors residing just outside of
the Market Area who will move to find housing products that meet their needs and preferences.
As the resident population ages into their retirement years, and as the baby boomer generation's
parents currently need and will continue to need support services, demand for senior housing in
the Market Area will increase.
Older Adult Household Income Distribution
The potential market for senior housing is comprised of age-qualified individuals who are able
and willing to pay for senior housing alternatives. Seniors are able to derive income from the
sale of their single-family homes or other income-producing assets, Social Security, and/or long-
term care insurance. In addition to these income sources, many seniors will receive fmancial as-
sistance from family members in order to afford housing that meets their needs.
Table 3 shows estimated and projected incomes for older adult households in the Market Area in
2007 and 2012. In addition, the change in the number of households in each income and age
group over this five-year time period is also shown. The data was estimated by Maxfield Re-
search Inc. and is based on income trends provided by Claritas, Inc.
In general, the older and the more frail the senior, the greater the proportion of their income they
will spend on housing and services. Studies have shown that seniors are able and willing to pay
about 40 percent or more of their incomes for market rate senior housing without services. For
congregate senior housing (facilities with limited services), an income allocation of 50 to 65 per-
cent is common. Seniors in need of a higher level of personal care assistance may spend as
much as 85 percent or more of their income on assisted living. Many frail seniors will spend
down assets they have available to avoid being placed in a nursing home.
MAXFIELD RESEARCH INC. 13
DEMOGRAPHIC ANALYSIS
TABLE 3
INCOME DISTRIBUTION BY AGE OF HOUSEHOLDER (55+)
BLOOMINGTON MARKET AREA
2007 & 2012
2007
Under $15,000
$15,000424,999
$25,000-$34,999
$35,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000 or more
Total
55-64 65-74 Total 65+
No. Pct. No. Pct. No. Pct. No. Pct.
1,294 5.3
1,122 4.6
1,758 7.2
2,794 11.4
5,023 20.5
3,738 15.3
8,739 35.7
1,055 7.5
1,657 11.8
1,630 11.6
2,522 18.0
2,983 21.3
1,586 11.3
2,599 18.5
2,445 15.5
3,065 19.4
2,647 16.8
2,542 16.1
2,576 16.3
1,035 6.6
1,473 9.3
3,500 11.7
4,722 15.8
4,277 14.3
5,064 17.0
5,559 18.6
2,621 8.8
4,072 13.7
24,468 100.0 14,032 100.0 15,783 100.0 29,815 100.0
$30,000+ 21,173 86.5 10,505 74.9 8,950 56.7 19,455 65.3
Median Income $76,625 $51,274 $33,996 $42,128
Metro Median $71,114 $45,372 $29,515
2012
$37,663
Under $15,000
$15,000-$24,999
$25,000-$34,999
$35,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000 or more
Total
55-64 65-74 IIIIIIIIIIIMININ Total 65+
No Pct. No. Pct. No. Pct. No. Pct
1,416 4.9
1,196 4.2
1,733 6.1
2,987 104
5,474 19.1
4,408 , 15.4
11,415 39.9
1,159 7.0
1,644 9.9
1,843 11.1
2,816 16.9
3,526 21.2
2,013 12.1
3,661 22.0
2,056 13.2
2,725 17.5
2,565 16.5
2,630 16.9
2,578 16.6
1,232 7.9
1,769 11.4
3,215 10.0
4,369 13.6
4,408 13.7
5,446 16.9
6,104 18.9
3 ,245 10.1
5,430 16.9
28,629 1000 16,662 100.0 15,555 100.0 32,217 100.0
$34,000+ 24,457 85.4 12,200 732 8,466 54.4 20,666 64.1
Median Income , $83,555 $56,161 ' $37,461 $47;132
Metro Median $78,108 $49,721 $32,715 $42,292
Under $15,000
$15,000-$24,999
$25,000-$34,999
$35 ,000449,999
$50,000-$74,999
$75 ,000499,999
$100,000 or more
Total
$30,000+534,000+
55-64 65-74 75+ Total 65+
No. Pet No. Pet No. Pct. No. Pet
122 9.4
74 6.6
-25 -1.4
103 6.9
451 9.0
670 17.9
2,676 30.6
104 9.9
-13 -0.8
213 13.1
294 11.7
543 18.2
427 26.9
1,062 40.9
-389 -15.9
-340 -11.1
-82 -3.1
88 3.5
2 0.1
197 19.0
296 20.1
-285 -8.1
-353 -7.5
131 3.1
382 7.5
545 9.8
624 23.8
1,358 33.3
4,161 17.0
3,284 15.5
2,630 18.7
1,695 16.1
-228 -1.4
-484 -5.4
2,402 8.1
1 ,211 , 6.2
Mediasi1nóme. ,9 . : $4,88 ,
Metro Median $6,994 9.8 $4,349 9.6 $3,200 10.8 $4,629 12.3
Sources: Claritas,Inc.; Maxfield Research Inc.
MAXFIELD RESEARCH INC. 14
DEMOGRAPHIC ANALYSIS
The following bullet points present key findings from Table 3.
• Household incomes substantially decline from households age 55 to 64 to those age 75+. For
example, the median income for households age 55 to 64 is currently estimated at about
$76,600; for households age 75+, it is estimated at roughly $34,000. The higher incomes for
older adult and younger senior households compared to older seniors is primarily due to the
fact that a higher proportion of younger seniors continue to have income-producing employ-
ment and/or are married and are more likely to have two pensions and higher Social Security
benefits.
• Despite the difference in median incomes, older senior households are more likely to spend a
larger proportion of their income on housing, especially for housing products that offer ser-
vices. The number of age 65+ households with incomes above $30,000 ($34,000 in 2012 to
account for inflation) is projected to increase by about 1,210 households between 2007 and
2012, representing an increase of 6.2%. By 2012, the Bloomington Market Area is projected
to contain a total of 20,666 households age 65+ with incomes above $34,000.
• Nearly 41% of 65+ households with incomes above $34,000 in 2012 (8,466 households) will
be over the age of 75. This figure, however, represents a decrease of nearly 485 households
over the 2007 estimate of 8,950 households in this age cohort and income range.
• Overall, the median income for Market Area seniors (65+) is expected to increase by just un-
der 12% between 2007 and 2012, reaching approximately $47,130 by 2012.
Senior Household Tenure
Table 4 shows the number of households age 55+ that owned and rented their housing in the
Market Area in 1990 and 2000, according to the U.S. Census. This information provides an in-
dication of the propensity to rent among the senior household base. In addition, the data lends
insight regarding the number of households that may still have homes to sell, and could poten-
tially supplement their incomes from the sale of their homes to support monthly fees for senior
housing.
• As seniors age, they may no longer desire or be able to maintain their single-family homes.
Some seniors may prefer to move to housing that offers them greater freedom from mainten-
ance and/or offers them support services. Seniors typically begin to consider moving into
rental housing in their early 70s. In 2000, 87% of Market Area households age 65 to 74
owned their housing while 73% of households age 75 and over owned their housing.
• The Market Area homeownership rate among older adults (age 55 to 64) in 2000 was compa-
rable to the homeownership rate among the 65 to 74 age cohort. Although households in the
55 to 64 age cohort are not usually a target market of assisted living or congregate senior
housing, the lack of difference in the homeownership rate indicates that many seniors in the
Market Area delay the transition from their owner-occupied single-family home to a rental
apai talent until after they are age 75.
MAXFIELD RESEARCH INC. 15
Own
55-64
Own Rent
14,754 . . :2,022
88%
4-o. of Households
Homeownership Rate
15,732 2,257
87%
Sources: U.S. Census; Maxfield Research Inc.
No.ôfHóustholds
Homeownership Ra
DEMOGRAPHIC ANALYSIS
• Between 1990 and 2000, the net gain in households age 65 to 74 and 75+ skewed toward
homeownership. This could be the result of either a lack of appropriate rental product that
meets the needs of today's older households or a shift toward ownership product that is de-
signed for active adults and seniors.
TABLE 4
SENIOR HOUSEHOLD TENURE
BLOOMINGTON MARKET AREA
1990 and 2000
Age of Householder
Home Values
Table 5 presents home resale data for a geographic area similar to the Bloomington Market Area.
The data is from the Regional Multiple Listing Service (MLS) from 2004 through December 15,
2007. In addition to the number of sales and average sale price data, we have also reviewed the
average time (days) on the market to assess the likely timeframe in which a senior may be able to
sell their home. Since seniors typically live in older homes, we examined resale data for homes
more than 20 years old (built in 1985 or earlier). This data is useful in that it represents the
amount of equity seniors may be able to derive upon the sale of their homes that could be used
for senior housing alternatives.
The following points are key fmdings from Table 5.
• The average sale price of single-family homes (20+ years old) in Bloomington increased
from about $252,960 in 2004 to $266,500 in 2006. Through December 15 th , however, the
average sales price has declined by about 3% from the previous year.
• In the Remainder of the Market Area, single-family home values were quite a bit higher, with
an average sales price of $340,585 in 2006 and $343,242 through mid-December 2007.
While average sales prices decreased in the City of Bloomington, the average sales price in
the Remainder of the Market Area has increased slightly through mid-December 2007.
MAXFIELD RESEARCH INC. 16
DEMOGRAPHIC ANALYSIS
• During the four-year period, the average length of time a home remained on the market near-
ly doubled from 33 days in 2004 to 60 days so far in 2007 in Bloomington. Along with the
drop in number of sales, this represents a slowing in the housing market as it trends toward
market equilibrium and corrects itself from the remarkable appreciation of previous years.
The same pattern is apparent in the Remainder of the Market Area. Despite the slowing in
the market, seniors should be able to sell their homes in a reasonably short period of time
should they decide to sell.
TABLE 5
HOME SALES - SINGLE-FAMILY HOMES
BUILT IN 1985 OR BEFORE
BLOOMINGTON MARKET AREA
2004 to 2007*
City/County
No. of
Sales
Average
Price
Avg.
DOM
Bloomington
2007 YTD*
2006
2005
2004
541
687
828
821
$258,086
$266,507
$265,080
$252,961
60
56
54
33
% Change 2004-2006 5.4%
$000.04er'ormie140Aie•
2007 YTD*
2006
2005
2004
2,689
2,036
3,443
3,658
$343,242
$340,585
$325,904
$306,673
57
55
55
31
% Change 2004-2006 11.1%
*Sales through December 15, 2007.
** Remainder of Mkt Area includes the following areas, as designated by the
MLS: 304 - MPLS - Nokomis, 309- MPLS - Southwest, 378 - Richfield, 385 -
Edina, 387 - Minnetonka, and 392 - Eden Prairie.
Sources: Multiple Listing Service; Maxfield Research Inc.
Data from the American Association of Retired Persons (AARP) suggests that the vast majority
of senior homeowners (85%) have paid off their mortgages and own their homes free and clear.
This indicates that senior homeowners usually have more substantial equity than younger home-
owners and can usually generate additional income upon the sale of their home.
At the estimated mid-December 2007 average single-family home sale price in Bloomington
($258,000), a senior household could generate approximately $9,600 of additional income an-
nually (about $800 per month), if they invested in an income-producing account (4% interest
rate) after accounting for marketing costs and/or real estate commissions (7% of home sale
price). Should a senior utilize home proceeds dollar-for-dollar to support living in senior hous-
ing with services, the proceeds of this home would last roughly 96 months (nearly 8 years) based
on an average monthly rent of $2,500.
MAXFIELD RESEARCH INC. 17
DEMOGRAPHIC ANALYSIS
This information is useful in determining the affordability of senior housing alternatives for senior
households with a modest fixed income but with substantial equity in their homes. This data is
considered in our demand calculations located in the Conclusions and Recommendations section of
this report.
Summary of Growth Trends and Demographic Characteristics
• The overall population and household growth is projected to slow through 2012. This is
due, in part, to the lack of available land in the Market Area which creates limited oppor-
tunity for the addition of housing product and hence, household growth.
• The age distribution of the Market Area's population and household bases is projected to
show substantial growth in older adult and senior age cohorts. Between 2000 and 2012,
the 55 and older age cohort is projected to experience population and household growth
of 28.5% (21,300 people) and 28.2% (13,370 households), respectively. Growth in these
age cohorts will continue to support demand for senior housing alternatives into the fore-
seeable future.
• Increased affluence is observed in the older adult and senior population between 2007
and 2012. Driven by increasing median incomes, coupled with substantial growth in the
older adult and senior age cohorts, demand for market rate housing products will increase
substantially through 2012.
MAXFIELD RESEARCH INC. 18
SENIOR HOUSING MARKET ANALYSIS
Introduction
The preceding section examined demographic factors that impact demand for senior housing
products. This section provides an overview of contemporary senior housing alternatives and an
assessment of the current supply of competitive senior housing in the Market Area. Additional-
ly, any planned or proposed senior housing developments are identified that may compete with
the subject development and satisfy some potential demand for additional senior housing prod-
ucts in the Bloomington Market Area.
Types of Senior Housing
For analytical proposes, Maxfield Research Inc. classifies senior projects into four categories
based on the level and type of services offered:
• Adult/Few-Services projects are similar to a general occupancy apartment or condominium
building, in that they offer virtually no services but have age-restrictions (typically 55 or 62
or older). Organized activities and a transportation program are usually all that are available
at these projects. Because of the lack of services, adult/few-services projects typically do not
command the rent premiums of more service-intensive senior housing.
• This product has been one of the most popular types of senior housing developed in recent
years because it appeals to seniors who do not need services but desire to downsize their
housing and/or rid themselves of home maintenance. Unlike more service-intensive senior
developments which are primarily rental, adult projects come in a variety of forms: single-
family homes in an age-restricted subdivision, age-restricted townhome communities, con-
dominiums, cooperatives, and vat tment buildings.
• Oftentimes, government entities will provide development assistance or own the project out-
right in exchange for reserving a portion of the units for seniors with moderate incomes.
These income limits are frequently very liberal, allowing the majority of senior households to
qualify for residency.
• Congregate projects (or independent living with services available) offer support services
such as meals and/or housekeeping, either on an optional basis or a limited amount included
in the rents. These projects typically dedicate a larger share of the overall building area to
common areas to accommodate for smaller units when transitioning from adult housing and
to encourage socialization among residents. Congregate projects attract a slightly older tar-
get market than adult housing, typically seniors age 75 or older. Rents are also above those
of the adult/few-services buildings, even at the exclusion of services. Sponsorship by a nurs-
ing home, hospital, or other health care organization is common.
• Assisted Living facilities come in a variety of forms, but the target market for most is very
frail seniors, generally age 80 or older (but can be much younger, depending on their health
situation), who are in need of extensive support services. Absent an assisted living option,
these seniors may otherwise need to move to a nursing facility. At a minimum, assisted liv-
MAXFIELD RESEARCH INC. 19
SENIOR HOUSING MARKET ANALYSIS
ing projects include two meals per day and weekly housekeeping in the monthly fee, with the
availability of a third meal and personal care (either included in the monthly fee or available
for additional cost in tiered service packages or a-la-carte). Assisted living facilities also
have either staff on duty 24 hours per day or 24-hour emergency response.
• Some assisted living facilities offer self-contained dwelling units similar to a regular senior
apartment building with full kitchens and spacious rooms. Projects offering kitchens in the
units may include only two meals per day while those without kitchens in the units generally
provide three meals per day. Other projects do not have kitchens and are merely updated
versions of board-and-care facilities with sleeping units and communal living spaces.
• Monthly fees vary depending on the number and type of services included and the size of the
units, but most facilities have fees starting at roughly $2,400 per month. Because of the high
cost of care, many facilities accept financial assistance through Elderly Waivers or other fi-
nancial assistance programs.
• Memory Care facilities, designed specifically for seniors suffering from Alzheimer's Dis-
ease or other dementias, are one of the newest trends in senior housing. Projects will consist
mostly of suite-style or studio apartment units and allocate large communal areas for activi-
ties and programming. In addition, staff personnel typically undergo specialized training in
the care of this population. Because of the greater amount of individualized personal care re-
quired by this population, staffing ratios are much higher than traditional assisted living.
Thus, the costs of care are also higher. Monthly fees for memory care units typically start at
about $3,500 per month. Unlike conventional assisted living, however, which deals almost
exclusively with widows or widowers, a higher proportion of people afflicted with Alzhei-
mer's disease are in two-person households. Therefore, the decision to move a spouse into a
memory care facility involves the caregiver's concern of incurring the costs of health care at
a special facility while continuing to maintain their home.
FIGURE 1
CONTINUUM OF HOUSING AND SERVICES FOR SENIORS
Single -Family
Home Townhome or Apartment tongs:gate Aiiiiitniads -- t Optional Anointed Lenrog Nursing Facilities
, aiii,-.A.eiliicted ..
Apartments or tondo
Sil. Iidensive .Mommy Core .
, Alah eni Units
,
Fully Fully or Highly
Independent Dependent on Care
Senior Housing Product Type
Source: Maxfield Research Inc.
The senior housing products available today form a continuum of care from a purely residential
level to an intensive level of medical care. Often the services offered at these projects overlap
with one another and make these defmitions somewhat ambiguous. In general, however, distinc-
tions in cliental are made within each type of facility: adult/few-services projects tend to attract
younger, independent, and active seniors; congregate projects serve independent seniors who de-
MAXFIELD RESEARCH INC. 20
SENIOR HOUSING MARKET ANALYSIS
sire support services (i.e., meals, housekeeping, transportation, etc.); and assisted living projects
tend to attract older, more frail seniors who need assistance with daily activities but do not need
the intensive medical care provided by a skilled care facility.
Supply of Senior Housing in the Bloomington Market Area
In order to assess the potential demand for senior housing on the proposed Site, Maxfield Re-
search inventoried senior housing facilities located in the Bloomington Market Area. In total, the
Market Area contains nine congregate buildings with a total of 1,260 units, 16 assisted living fa-
cilities with a total of 949 units, and ten memory care facilities with a total of 279 units. The fol-
lowing tables and discussion summarize the competitive developments located in the Market
Area.
Congregate
The following are key points from Tables 6 and 7 that relate specifically to congregate housing
in the Market Area.
• The unit mix at Market Area congregate developments is comprised of the highest proportion
of one-bedroom units (45.9%). In descended order of percentage of total units, the remaining
units are two-bedroom (24.7%), studio (16.7%), one-bedroom plus den (10.2%), and two-
bedroom plus den (1.5%) units styles. Less than one percent of the total units are three-
bedroom (0.5%) and companion unit types (0.5%).
• On a weighted average basis, the unit sizes at Market Area properties are as follows: 369
square feet for studio units, 684 square feet for one-bedroom units, 929 square feet for one-
bedroom plus den units, 1,090 square feet for two-bedroom units, 1,275 square feet for two-
bedroom plus den units, and 1,629 square feet for three bedroom units.
• The existing supply of congregate housing is relatively old in the Market Area with several
initial occupancy dates in the late 1980s to early 1990s and an overall median occupancy date
of 1988. Only two projects began occupancy in this decade, which are Mainstreet Village of
Richfield in 2000 and Summit Place of Eden Prairie in 2003.
• The congregate component of the Presbyterian Homes of Bloomington campus — The Ter-
race — opened in 1986 as a cooperative senior housing community. More recently, the devel-
oper has repurchased and converted the units to be rental. Approximately 88 of the total 101
unit supply has been converted to rental. All units are considered competitive since the cur-
rent owner-occupied units are planned to be converted to rental in the future.
• In addition to the rental congregate communities identified in Table 6, the Market Area con-
tains owner-occupied and cooperative communities. Due to the owner-occupied nature of
these communities, as well as their target market that is generally more active seniors, we do
not consider them to be competitive with a rental congregate community that is proposed for
the subject development.
MAXFIELD RESEARCH INC. 21
SENIOR HOUSING MARKET ANALYSIS TABLE 6 EXISTING CONGREGATE SENIOR HOUSING PROJECTS BLOOMINGTON MARKET AREA January 2008 Date No. of Monthly Rent Development/Location Opened Units Vacant Unit Mix Unit Size Rent/Fees per Sq. Ft. -- - Cott- ate - . Summit Place 2003 120 0 38 - 1BR 774 - 848 $1.699 -$1,786 $2.11 $2.20 8501 Flying Cloud Drive 31 - 1BR/D 971 - 1,104 $2,112 $2,455 $2.18 $2.22 Eden Prairie 45 - 2BR 1,071 - 1.526 $2,310 $3.384 $2.16 $2.22 6 - 3BR 1,629 $3,762 $2.31 Mainstreet Village 2000 130 9 61 - 1BR 724 -857 $1,142 - $1,335 $1.56 -$1.58 7601 Lyndale Avenue South 69 - 2BR 868 - 1,212 $1,306 - $1,823 $1.50 - $1.50 Richfield Village Shores 1995 145 1 61 - 1BR 674 - 815 $1,035 - $1.206 $1.48 - $1.54 6501 Woodlake Drive 35 - 1BR/D 898 -988 $1,264 - $1,408 $1.41 -$1.43 Richfield 49 - 2BR 1,112 - 1.252 $1,552 - $1.616 $1.29 -$1.40 Elim Shores 1990 64 2 52 - 1BR 594 - 763 $1,023 - NA $1.72 - NA 7900 Timber Lake Drive 12 - 2BR 980 - 1,118 $1,500 - NA $1.53 - NA Eden Prairie Walker Tree Tops' 1988 100 8 25 - Studio 459 -494 $815 -$900 $1.78 -$1.82 3535 Bryant Avenue South 66- 1BR 615 -737 $1,035 -$1,300 $1.68 -$1.76 Minneapolis 2 - I BR/D 918 $1,395 $1.52 7 - 2BR 1,024 $1,530 $1.49 Vernon Terrace 1988 145 5 51 - 1BR 654 - 845 $995 - $1,080 $1.28 - $1.52 5250 Vernon Avenue 33 - 1BR/D 845 $1,080 $1.28 Edina 42 - 2BR 900 $1,190 - $1.335 $1.32 -$1.48 19 - 2BR/D 1,050 - 1.499 $1,490 - $2,190 $1.42 - $1.46 Edina Park Plaza 1987 195 N/A 126 - IBR 623 -931 $1,995 - $3.400 $3.20 -$3.65 3330 Edinborough Way 69 - 2BR 915 - 1,200 $2,665 - $4,800 $2.91 - $4.00 Edina Congregate Subtotal 899 25 I CONTINUED MAXFIELD RESEARCH INC. 22
SENIOR HOUSING MARKET ANALYSIS
TABLE 6
EXISTING CONGREGATE SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Date No. of Monthly Rent
Development/Location Opened Units Vacant Unit Mix Unit Size Rent/Fees per Sq. Ft.
, Ciiiittetite'"''
Presbyterian Homes of Bloom.' 1986 101 1 62 - 1BR 621 - 693 $1.248 - $1,383 $2.00 - $2.01
9889 Penn Avenue South 24 - 1BR/D 855 - 910 $1,721 $1.89 - $2.01
Bloomington 15 - 2BR 1,125 - 1.205 $1,840 - $1,943 $1.61 - $1.64
Heritage of Edina 1965 260 16 6 - Companion 695 $810 $1.17
3434 Heritage Drive 186 - Studio 290 -420 $1,020 - $1,320 $3.14 - $3.52
Edina 61 - 1BR 450 - 850 $1,535 $2.030 $2.39 - $3.41
4 - 1BR/D NA NA NA
3 - 2BR 1,000 $2,475 $2.48
„
Congregate Tot al ;1,200.., '.'3%. - ..
'Walker Tree Tops is located approximately one block from the Market Area boundary.
2 A component of the Presbyterian Homes of Bloomington campus, the congregate component is referred toss the "Terrace. These units were originally cooperative units but have been bought back by
Presbyterian Homes and converted to rental units. Currently, 88 of 101 units function as rental units.
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 23
SENIOR HOUSING MARKET ANALYSIS
TABLE 7
UNIT FEATURES/BUILDING AMENITIES/SERVICES
EXISTING CONGREGATE SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Congregate
Summit Place
Unit Features
6
0 fl
.
t - = : "4 u
n..., .-51. ..2.. ...L. ....... A.
Building Amenities I
E gto , .
0 .5
g, a.)
E "E t i g E 71
,..ca.., ...p:: ,.., .:_.-a . _il... _`L.. ._...1....
Services
=2
0.
..,.., ..
.?:. 'g
":..... .2... ..E . ..1. Other Features
Y Y Y Y Y S Y Y YY Y Y- UG Y
Inc. Inc.
Y Y 0 Y
6/mo
All utilities included except electricity.
Mainstreet Village 0 Y - N Y YY Y Y Y YO- UG N
$50/mo
Y Y 0 0 Resident pays electric, telephone, and
cable.
Village Shores Y NN S Y Y Y Y Y Y 0- G 0
$45/mo $50/n
Y Y N 0 Resident pays electric, telephone, and
cable.
Elim Shores OS - NY S YN YNYO- UG 0
$40/mo $30/n
Y Y Y 0
l/w
Resident pays electric and cable.
Walker Tree Tops Y YNN S Y YNY Y YO- UG o
$45/mo $30/n
Y Y 0 0 Rent includes heat.
Vernon Terrace Y YNS S S Y Y Y Y Y 0- G o
$40/mo $50/mo
Y Y N 0 Resident pays electric.
Edina Park Plaza Y YNN Y S `IV I' 'I YO- UG Y
$50/mo Inc.
I' Y —Y I'
1/w 45/mo
Includes all utilities except telephone
and cable.
Presbyterian Homes of Bloom. I' 11 - S - S
Hook-ups
Y. I' Y 'I ‘10- UG Y
$50/mo $50/n
0 Y 0 y
1/d
Includes all utilities except telephone.
Heritage of Edina 11 NNN S Y 1" Y . Y `IVO- UG o
$60/mo $50/n
Y Y y o
1/w
Includes all utilities except telephone
and cable.
Y=Included, N=Not Included, 0=Optional (fee based), S=Some. UG=Underground Parking, G=Garage
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 24
SENIOR HOUSING MARKET ANALYSIS
• Overall, congregate developments feature several common areas, underground parking and
guest suites for additional fees, transportation, activities, and optional meals and housekeep-
ing. Most utilities are included in the monthly rent, and some properties also include light
weekly housekeeping and meals.
• In summary, there are 1,260 existing congregate rental housing units in the Market Area. Of
these existing units, we identify 42 available units for a total vacancy rate of 3%. Market
equilibrium is defined at 5% for congregate housing; due to the vacancy rate below market
equilibrium, some pent-up demand for additional congregate housing likely exists in the
Market Area.
Assisted Living Senior Housing
The following are key points from Tables 8 and 9 regarding assisted living housing in the Market
Area.
• The supply of assisted living senior housing is relatively new in the Market Area. Six of the
16 facilities began occupancy during or after 2000, and the overall median initial occupancy
date is 1995. This trend is consistent with senior housing development in other market areas;
substantial increases in the senior population and subsequent creation of housing alternatives
to meet their needs has driven development of more service-intensive housing in recent
years.
• Service-intensive housing often has a higher proportion of smaller unit sizes that are typically
less spacious than independent housing options. Of the surveyed assisted living complexes,
one-bedroom units constitute the largest percentage (45.8%) of total unit supply with a
weighted average size of 591 square feet. The second most supplied unit type is studio units,
which comprise 41.6% of the total mix and have a weighted average size of 376 square feet.
A lesser percentage of units are two-bedroom (10.8%) with a size of 937 square feet, and the
remaining units are companion suites (1.1%) and one-bedroom plus den units (0.7%).
• On a weighted average basis, monthly rents for assisted living units are about $2,970 for stu-
dio units, $3,190 for one-bedroom units, and $3,710 for two-bedroom units. This pricing is
general, however, as monthly fees vary between projects based on services that are included
in the monthly rents.
• The majority of assisted living complexes in the Market Area include transportation, activi-
ties, light weekly housekeeping, and two or three meals per day in the monthly rent. A
community room, craft/hobby room, dining room, and library are in nearly every develop-
ment, and optional parking and guest suites commonly available.
• In total, 949 assisted living units are located in the Bloomington Market Area that would be
competitive with the subject development. Of these existing units, we identified 29 available
units for a total vacancy rate of 3%, well below the market equilibrium rate of 5%. The low
vacancy rate gives indication that excess demand for additional assisted living senior housing
is present in the Market Area.
MAXFIELD RESEARCH INC. 25
SENIOR HOUSING MARKET ANALYSIS
TABLE 8
EXISTING ASSISTED LIVING SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Date No. of Monthly Rent
Development/Location Opened Units Vacant Unit Mix Unit Size Rent/Fees per Sq. Ft. (pp)
isfestEMitg
Sunrise of Minnetonka 2005 39 7 19 - Studio 330 - 400 $3,720 - $3,900 $9.75 - $11.27
18707 Old Excelsior Boulevard 23 - 1BR 400 - 700 $4,350 - $5,100 $7.29 - $10.88
Minnetonka 8 - 2BR* 500 - 600 $2,400 - $3,300 $4.80 - $5.50
Summit Place 2003 63 0 5 - Studio 458 -475 $2,681 $5.64 -$5.85
8501 Flying Cloud Drive 43 - IBR 531 - 835 $2,849 - $3,379 $4.05 -$5.37
Eden Prairie 15 - 2BR 895 - 965 $3.799 - $3,994 $4.14 - $4.24
The Aspen 2003 29 1 23 - Private 202 $4,920 - $5,970 $24.36 - $29.55
8100 Highwood Drive 6 - Companion* 499 $4,710 - $7,260 $9.44 - $29.10
Bloomington
The Colony at Eden Prairie 2002 128 3 3 - Studio 415 $2,425 $5.84
431 Prairie Center Drive 72 - 1BR 576 - 816 $2,525 - $3,125 $3.83 -$4.38
Eden Prairie 53 - 2BR 822 - 1,143 $2,875 - $3,625 $3.17 - $3.50
Mainstreet Village 2001 31 0 10 - Studio 262 - 548 $2,299 - $2,717 $4.96 - $8.77
7601 Lyndale Avenue South 21 - 1BR 554 - 720 $2,725 -$2,969 $4.12 -$4.92
Richfield
The Pines 2000 82 0 4 - Companion 325 $1,660 $5.11
400 West 67th Street 15 - Studio 475 - 540 $2,315 - $2.580 $4.78 - $4.87
Richfield 47 - IBR 650 - 700 $2,995 - $3,205 $4.58 - $4.61
12 - 2BR 760 - 1,000 $3,690 - $4,600 $4.60 - $4.86
Sunrise of Edina 1999 73 5 55 - Studio 252 - 417 $3,500 - $4,560 $10.94 - $13.89
7128 France Avenue 18 - 1BR 410 - 558 $4,650 -$5,640 $10.11 -$11.34
Edina
Minnetonka Assisted Living 1996 78 4 63 - Studio 237 - 503 $2,070 - $2,400 $4.77 - $8.73
14505 Minnetonka Drive 15 - 1BR 488 - 501 $2,425 - $2,655 $4.97 - $5.30
Minnetonka
Beacon Hill Commons 1995 42 0 NA - Studio 393 $2,199 $5.60
5300 Beacon Hill Road NA - 1BR 535 - 640 $2,343 -$2,611 $4.08 -$4.38
Minnetonka NA - 2BR 935 $2,948 $3.15
Assisted Living Subtotal 565 20 I
CONTINUED
MAXFIELD RESEARCH INC. 26
SENIOR HOUSING MARKET ANALYSIS
TABLE 8
EXISTING ASSISTED LIVING SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Date No. of Monthly Rent
Development/Location Opened Units Vacant Unit Mix Unit Size Rent/Fees per Sq. Ft.
:As" sist- Wink.-
Village Shores' 1995/ 21 5 10 - 1BR 674 - 815 $2,980 - $3,096 $3.80 - $4.42
6501 Woodlake Drive 2007 4 - 1BR/D 898 - 988 $3,255 - $3,402 $3.44 - $3.62
Richfield 7 - 2BR 1,112 - 1,252 $3,848 - $3,908 $3.12 - $3.46
Heritage Hall 1994 46 0 19 - Studio 278 - 365 $1,826 - $2,173 $5.95 - $6.57
11501 Masonic Home Drive 27 - 1BR 387 - 454 $2,438 - $2,600 $5.73 - $6.30
Bloomington
Presbyterian Homes of Bloom.2 1993 86 3 40 - Studio 454 - 540 $2,345 - $2,709 $5.17 - $5.97
9889 Penn Avenue South 41 - 1BR 550 - 940 $2,860 - $3,395 $5.20 - $6.17
Bloomington 4 - 2BR 811 -952 $3,256 - $3,594 $4.01 -$4.43
Walker Elder Suites 1992 72 1 62 - Studio 298 -436 $3,000 -$3,345 $7.67 - $10.07
7400 York Avenue South 8 - IBR 462 -518 $3,570 -$4,100 $7.73 - $7.92
Edina 2 - 1BR/D 700 $4,400 $6.29
Meadow Woods 1989 108 2 28 - Studio 270 - 390 $2,385 - $3,035 $7.78 - $8.83
1301 East 100th Street 80 - 1BR 390 - 425 $3,040 - $3,320 $7.79 - $7.81
Bloomington
Castle Ridge Manor 1987 21 1 21 - Studio 325 $1,650 $5.08
615 Prairie Center Drive
Eden Prairie
Elder Homestead 1986 30 2 17 - Studio 400 $2,402 $6.01
11400 4th Street North 13 - 1BR 575 -600 $2,870 -$2,933 $4.89 -$4.99
Minnetonka
3°
' Excluded from vacancy calculation since facility is in the initial lease-up period. Village Shores projects full occupancy by June 2008.
2 A component of the Presbyterian Homes of Bloomington Gideon Pond campus, the assisted living component is referred to as "The Commons".
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 27
SENIOR HOUSING MARKET ANALYSIS
TABLE 9
UNIT FEATURES/BUILDING AMENITIES/SERVICES
EXISTING ASSISTED LIVING SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
allMrlZSEMMEIBEIM
e
. 6 (2; :-.6'
C... 2 • ''.2 • 2 -a ra
MENEMEIMI
c as ..2 r. .5
.ki 8
.L... 2 •E ......, ...._ -. Other Features
Building Amenities
g
.e
Z,
s o
.13
a
E
g
g
2? E e
ta c
:€
a) ta
`‘:i _a__ 5 --.1--
Assisted Living
Sunrise of Minnetonka Y - Y - S Y Y Y Y Y N
Surface
Y Y Y Y Y
3/d
Includes all utilities except telephone
and cable.
Summit Place Y Y Y Y - S Y Y Y Y - 0
$50/n
Y Y Y
11w
Y
3/d
Includes all utilities except electricity.
The Aspen - - - - - - - Y Y Y Y
3/d
Includes all utilities.
Colony at Eden Prairie Y S Y S Y S Y Y Y YOO-UG
$30/mo $50/mo
0
$40/n
Y Y Y
11w
Y
2/d
Includes water, sewer, and trash.
Mainstreet Village 0 Y - N Y Y Y Y Y Y YO-UG
$50/mo
N Y Y Y
1/w
Y
3/d
Includes all utilities except telephone
and cable.
The Pines YNY - Y S YY YY YO-UG
$50/mo
0
$60/n
Y Y Y
l/w
Y
2/d
Includes all utilities except telephone
and cable.
Sunrise of Edina Y-N- S - YYYYN - Y. 1' Y Ir
3/d
Includes all utilities except telephone.
Minnetonka Assisted Living YNNNNN Y Y Y YN O-G
$50/mo
N N Y Y
1/w
Y
3/d
Includes all utilities except telephone.
Beacon Hill Commons Y - N N - Y Y Y Y - 0- UG
$50/mo
- - - Y
l/w
y
2/d
Includes all utilities except telephone.
Heritage Hall YN S NNNY Y Y Y Y N
Surface
N 11 Y—Y
1/w
Y
2/d
Includes all utilities except telephone.
Presbyterian Homes of Blom. Y Y YN S N YN YN Y N
Surface
N I' Y A'
1/w
Y
2/d
Includes all utilities except telephone
and cable.
Walker Elder Suites YN Y N - N Y YNN Y N
Surface
N 0 I, Y
1/w
Y
3/d
Includes all utilities except telephone
and cable.
Meadow Woods YNNN YN Y Y Y YNO-UG
$40/mo
0
$60/n
Y Y Y
1/w
Y
3/d
Includes all utilities except telephone.
CONTINUED
MAXFIELD RESEARCH INC. 28
SENIOR HOUSING MARKET ANALYSIS
TABLE 9
UNIT FEATURES/BUILDING AMENITIES/SERVICES
EXISTING ASSISTED LIVING SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
1. nit Fe:itures
=
0 O r,
.
et2
c
.t3 ' ct, 13
1.11IMEEMMENEIMME
.
r5 to
Ztt ..Y
0
a) E Ca Ea
§ ..2 '''
Services
.
•— a) tn > tn ....
Other Features
Castle Ridge Manor Y N N - N Y Y YNN N N
Surface
Y Y Y Y
3/d
Includes all utilities except telephone.
Elder Homestead Y N N YN Y YNN Y N N
Surface
Y Y Y Y
1/w 3/d
Includes all utilities except telephone.
Y=Included, N=Not Included, 0=Optional (fee based), S=Some, UG=Underground Pa king, G=Garage
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 29
SENIOR HOUSING MARKET ANALYSIS
Memory Care Senior Housing
The following are key points from Tables 10 and 11 regarding memory care housing in the Mar-
ket Area.
• Memory care housing is one the newest senior housing alternatives, evidenced by the recent
development of memory care housing in the Market Area. This housing product was first in-
troduced in the Market Area in 1998 with the development of Clarebridge of Eden Prairie
and Emerald Crest of Minnetonka. Since 2000, seven of the ten projects have come on-line,
the majority of which began occupancy in 2003 and 2005.
• Conversations with Sunrise of Edina revealed that the property is considered reallocating
some of the existing assisted living units to memory care. Plans are preliminary at this point
in time, but demonstrate the depth of demand and overall market acceptance of this senior
housing product.
• Studio units account for about 72.4% of the total unit mix at Market Area memory care fa-
cilities. The remaining portion of units consists of one-bedroom units (19.7%), companion
units (7.2%), and two-bedroom units (0.7%).
• Unit sizes calculate to a weighted average of 291 square feet for studio units and 582 square
feet for one-bedroom units. In almost all facilities, memory care units have only one resi-
dent, which makes less spacious units a feasible option.
• Market Area facilities most often include some services in the monthly rent and have addi-
tional services available in tiered packages based on the progression of memory care ailments
experienced by each individual resident. Every facility includes most utilities, three meals
per day, weekly housekeeping, activities, and some transportation in the monthly rent.
• At the time of our survey, eleven out of the 279 units are vacant for a vacancy rate of 4%.
Representing a vacancy rate below market equilibrium (5%), pent-up demand for memory
care housing likely exists in the Bloomington Market Area.
MAXFIELD RESEARCH INC. 30
SENIOR HOUSING MARKET ANALYSIS
TABLE 10
EXISTING MEMORY CARE SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Development/Location
Date
Opened
No. of
Units Vacant Unit Mix Unit Size
Monthly
Rent/Fees
Rent
per Sq. Ft.
MEMORY,CARE3:-
Sunrise of Minnetonka
18707 Old Excelsior Boulevard
Minnetonka
2005 22 3 14 - Studio
8 - 1BR
330 - 400
400 - 700
$3,720 $3,870
$4,350 - $5,100
$9.68 - $11.27
$7.29 - $10.88
Presyterian Homes of Bloom.'
9889 Penn Avenue South
Bloomington
2005 18 2 18 - Studio 325 $4,189 - $4,952 $12.89 - $15.24
English Rose Suites I-V
(Five locations)
Edina
2005 36 0 36 - 1BR NA $8,850 - $12,750 NA - NA
Summit Place
8501 Flying Cloud Drive
Eden Prairie
2003 32 0 22 - Studio
8 - 1BR
2 - 2BR
203 - 458
531 -719
895 - 965
$2,201 - $3,125
$3,291 -$3,710
$4,200 - $4.394
$10.84 - $15.39
$5.16 - $6.20
$4.69
The Aspen (Red Pine)
8100 Highwood Drive
Bloomington
2003 30 0 22 - Private
8 - Companion
202
409
$3,480 - $5,970
$3,630
$17.23 - $29.55
$17.75
The Colony at Eden Prairie
431 Prairie Center Drive
Eden Prairie
2003 14 1 14 - Studio 465 $4,225 - $4,325 $9.09 - $9.30
Elder Homestead II
11400 4th Street North
Minnetonka
2000 20 1 20 - Studio 400 $2,665 - $2,730 $6.66 - $6.83
Sunrise of Edina
7128 France Avenue
Edina
1999 19 0 16 - Studio
3 - 1BR
252 -417
550
$3,600 -$4,560
$4,560
$10.94 - $14.29
$8.29
Memory Care Subtotal 191 7 I
CONTINUED
MAXFIELD RESEARCH INC. 31
SENIOR HOUSING MARKET ANALYSIS
TABLE 10
EXISTING MEMORY CARE SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Date No. of Monthly
Development/Location Opened Units Vacant Unit Mix Unit Size Rent/Fees
Rent
per Sq. Ft.
;1n0111Okkriii.:::.
Emerald Crest of Minnetonka I111 1999/ 36 4 36 - Studio 200 - 300 $4,250 - $4,650
13401-13411 Lake Street Extension 1998
Minnetonka
$15.50 - $21.25
Clarebridge of Eden Prairie 1998 52 0 40 - Private 250 $3.595
7513 Mitchell Road 12 - Companion 400 $3,025
Eden Prairie
$14.38
$15.13
279.: 1 ..:06::::
' A component of the Presbyterian Homes of Bloomington Gideon Pond campus, the memory care component is referred to as "The Arbor".
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 32
SENIOR HOUSING MARKET ANALYSIS
TABLE 11
UNIT FEATURES/BUILDING AMENITIES/SERVICES
EXISTING MEMORY CARE SENIOR HOUSING PROJECTS
BLOOMINGTON MARKET AREA
January 2008
Memory Care
Sunrise of Minnetonka
nit Ft:i tu 1-es
C
0 ti 0
i 0 -9. g
Building Amen' ies ii
05
z. d l's 0 0 -g ...I _____
—3---
Services
.2 =
...a§
2 11 i
Other Features
Y - Y - - Y Y Y YN N Y
Surface
Y Y Y Y
11w 3/d
Includes all utilities except telephone
and cable.
Presbyterian Homes of Blom. YNNN - N Y Y YN Y N N
Surface
Y Y Y Y
l/w 3/d
Includes all utilities
Summit Place Y Y Y Y - S Y Y Y Y - - 0
$50/n
Y Y Y Y
11w 3/d
Includes all utilities except electricity.
The Aspen (Red Pine) - - - - - - - - - - - Y Y Y Y
3/d
Includes all utilities
The Colony at Eden Prairie Y S Y S - S Y Y Y Y 0 O-UG Y Y Y Y Y
1/w 3/d
Includes all utilities except telephone.
Elder Homestead YN - N YN Y Y N N Y N N
Surface
Y Y Y Y
11w 31d
Includes all utilities except telephone.
Sunrise of Edina Y - N - S Y Y Y YN - - Y Y Y Y
3/d
Includes all utilities except telephone.
Emerald Crest of Minnetonka YNN-N- YY - - - - - S Y Y Y
1/d 3/d
Includes all utilities
Clarebridge of Eden Prairie YNN - Y - Y Y Y YN N Y Y Y
3/d ,
Includes all utilities.
Y=Included. N=Not Included, 0=Optional (fee based), S=Some, UG=Underground Parking, G—Garage
* Features and amenities list does not include English Rose Estates since the residential model of the development is not comparable to a larger complex.
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 33
SENIOR HOUSING MARKET ANALYSIS
Pending Senior Housing Developments
Maxfield Research interviewed staff members in the Market Area communities in order to iden-
tify and profile any pending senior housing projects that may be competitive with the proposed
development. Below is the summary of pending developments we identified from our inter-
views.
Bloomington
• In addition to the Bethany senior housing that is under consideration in this study, the
City identified two additional senior housing developments that are in the preliminary
stages. The first, Portland Commons, has been approved for a parcel located at 8735
Portland Avenue South. The applicant, Frank Blundetto, has received approval to revise
the Final Development Plan that was approved by the City on May 1, 2006. Develop-
ment plans include a 166-unit complex of congregate, assisted living and memory care
and a 50-unit stand alone complex of independent senior housing. As we understand, the
unit distribution would be 50 active adult, 134 catered living (i.e. congregate and assisted
living), and 32 memory care units. We include these units in our demand calculations
since they are approved and would satisfy some demand for senior housing over the next
five years.
• A second project, Applewood Pointe of Southtown, has also submitted an application for
approval. This project by United Properties would supply the Market Area with 91 units
of senior cooperative housing on a lot located at 2600 West 82 nd Street. Should this
project move forward, we anticipate little market competition with Bethany senior cam-
pus due to the active adult target market and owner-occupied structure of the Applewood
Pointe development.
• Conversations with English Rose Estates revealed the establishment of the sixth 6-unit
residential care home for seniors with memory impaiauent. The company planned to ac-
quire the property in January 2008 with initial occupancy beginning in February 2008.
The model of care and fees for rent and services will be similar to the existing homes,
which range from $295 to $425 per day. This project is included in our demand calcula-
tions as it satisfies some additional demand for memory care housing in the Market Area.
• We understand that there are future plans for an expansion of Martin Luther Manor
Community, a skilled care facility in the Bloomington Market Area. The first priority
would be an addition of 14 memory care units, followed by an addition of assisted living
and independent housing units. The plans are very preliminary, and we do not include the
potential units due to the preliminary nature of the project.
• To our knowledge, a second preliminary development is being considered near the inter-
section of Penn Avenue and Old Shakopee Road at the old Bloomington City Hall loca-
tion. The developer, GRECO, LLC, is considering a 90-unit building that combines ca-
tered living (i.e. congregate and assisted living) and memory care senior housing. Addi-
tional information is not available at the time of completion of this report.
MAXFIELD RESEARCH INC. 34
SENIOR HOUSING MARKET ANALYSIS
Edina
• Wayzata Properties has received approval from the City to redevelop the existing Edina
Pentagon Office Park into a mixed used development called Gateway. The development
should begin construction on a hotel next year, followed by several offices, parking ga-
rages, and senior housing units. The construction timeline is staged over the next seven
to ten years; city staff indicated that the residential component will occur earlier in the
development process. Senior housing units to be developed include up to 60 townhome
units, 400 condominium units, and 151 assisted living units. The residential component
of the development is in the development plans, but has not received final approval from
the City.
Eden Prairie
• One project was identified in the City of Eden Prairie. Presbyterian Homes received ap-
proval in early December of 2007 for the development of 370 age-restricted housing
units. The age-restricted development is part of a comprehensive development plan that
also includes general-occupancy housing and retail components. The age-restricted units
would potentially include 210 independent senior rental units, 75 assisted living units, 27
memory care units, and 60 skilled care units. Some units (70) would also be designated
for affordable senior housing. A commercial building is under considered that would in-
clude 70,000 square feet of retail on the lower level with the affordable senior units above
the retail. The development timeline suggests service-enhanced housing would be estab-
lished around 2010, following development of a CVS pharmacy but prior to development
of the retail and affordable senior components.
We anticipate some market overlap with this development due to its location in the Mar-
ket Area. However, if the subject development breaks ground within the next year, the
project will likely reach stabilized occupancy before Eden Prairie development begins
construction. We include the planned units in our 2012 demand calculations, which are
presented in the following section.
Minnetonka
• United Properties is planning construction of Applewood Pointe of Minnetonka to be de-
veloped on a parcel along Rowland Road. The complex would include 61 units of coop-
erative housing, which are targeted toward an active and affluent senior household base.
Due to the owner-occupied nature of the project and the target market of more active and
independent adults, we do not anticipate market overlap between the Bethany develop-
ment and Applewood Pointe of Minnetonka.
Minneapolis
• The City of Minneapolis identified one approved senior housing project that is located
near the Market Area. Approval has been granted to Shelter Corporation for the devel-
opment of a 77-unit assisted living facility at 3717 23 rd Avenue South. Construction on
MAXFIELD RESEARCH INC. 35
SENIOR HOUSING MARKET ANALYSIS
the Site would begin in Spring 2008. Due to the location outside the Market Area, we do
not anticipate competition between the subject development and the Shelter Corporation
project, so we do not include the units in our demand calculations.
• In addition, a second project is currently in the preliminary stages in the Market Area por-
tion of Minneapolis. The Site under consideration is at the intersection of 54 th Street and
Riverview Road. Currently owned by MnDot, an RFP was issued and recommendation
is being made to permit Plymouth Church Neighborhood Group to develop 56 affordable
senior rental units and eight townhomes (general occupancy) on the Site. Several plan-
ning steps remain, resulting in a projected development timeline that extends out to 2010.
Affordable adult rental is not competitive with market rate adult rental, so we do not in-
clude the proposed units in our demand calculations.
Richfield
• Lang Nelson, in conjunction with Meets and Bounds, is currently working with the City
of Richfield to cultivate a development agreement to build 200 units of market rate senior
housing known as Cedar Point 2. Located at East 66th Street and Cedar Avenue, the pro-
posed development will contain a mix of market rate condos, some assisted living units
and 15 senior town homes. Since the development is still moving through the approval
process, it was not included in the demand calculations.
IVIAXFIELD RESEARCH INC. 36
DEMAND ANALYSIS
Introduction
Earlier sections of this report examined the development potential of the Site, growth trends and
demographic characteristics of the Market Area, current senior housing market conditions, and
the existing and future supply of competitive senior housing product. The current section utilizes
findings from earlier sections to estimate the market potential for market rate congregate, as-
sisted living, and memory care housing products in the Market Area.
The following analysis calculates demand for housing in the Bloomington Market Area and es-
timates the proportion of demand that could be captured by a project on the subject Site. Follow-
ing the demand calculations, commentary is provided on the proposed development concept.
This section concludes with specific market recommendations to increase the ability to attract
future residents and projects the amount of time it will take to reach full absorption of the units.
Demand for Congregate Senior Housing
Table 12 presents our demand calculations for congregate rental housing in the Bloomington
Market Area in 2007 and 2012.
The potential age and income-qualified base for congregate senior housing includes all senior
(65+) households with incomes of $30,000 as well as homeowner households with incomes be-
tween $20,000 and $29,999 who would qualify with the proceeds from the sale of their homes.
The proportion of eligible homeowners is based on the homeownership rates of areas seniors, as
identified in Table 3. We estimate the number of age, income, and asset-qualified households in
the Bloomington Market Area as of 2007 to around 22,970 households.
Adjusting to include appropriate capture rates for each age cohort (2.5% of households age 65 to
74 and 9.0% of households age 75 and older) results in a local demand potential for an estimated
1,290 congregate units in 2007. We estimate that seniors currently residing outside the Market
Area will generate 30% of the demand for congregate senior housing — increasing total demand
by about 555 congregate units. This demand will consist primarily of parents of adult children
living in the Market Area, individuals who live just outside the Market Area and have an orienta-
tion to the area, and former residents who desire to return upon retirement. Together, the de-
mand from Market Area seniors and demand from seniors who are willing to locate to the Mar-
ket Area totals about 1,845 units of congregate senior housing as of 2007.
From this total, we subtract existing congregate units (minus a vacancy factor of 5% to allow for
sufficient consumer choice and turnover). Due to its location just outside the Market Area, we
include only a portion (50%) of the units at Walker Tree Tops. After subtracting the number of
existing competitive units at 95% occupancy, demand potential remains for about 695 units of
congregate housing in 2007.
No single Site can capture all of the demand in a given market area. In consideration of Site's
appropriateness for senior housing development, we estimate that the proposed Site can capture
30% of the excess demand potential in the Bloomington Market Area. Applying this potential
MAXFIELD RESEARCH INC. 37
DEMAND ANALYSIS
capture rate results in excess demand that would be capturable on the subject Site for about
210 congregate units in 2007.
Adjusting for inflation, we have estimated that households with incomes of $34,000 or more and
senior homeowners with incomes between $22,500 and $33,999 would qualify for congregate
housing in 2012. With growth in senior households, we project the age, income, and asset-
qualified base for congregate housing to grow to over 24,650 senior households in 2012. Due to
increasing acceptance of senior housing alternatives, our potential capture rates increase to 3.0%
for households age 65 to 74 and 9.5% for households age 75 and older.
We include the congregate units planned for the Presbyterian Homes development in Eden Prai-
rie (210 units) and Portland Commons (two-thirds of the 134 catered living units), since some of
the demand potential would be satisfied by these projects. Our methodology projects that de-
mand for congregate housing on the subject Site will decrease slightly to about 185 units
through 2012.
TABLE 12
CONGREGATE RENTAL HOUSING DEMAND
BLOOMINGTON MARKET AREA
2007 & 2012
# of Households w/ Incomes of >$30,000 1
# of Households w/ Incomes of $20,000 to $29,999'
(times) Homeownership Rate
(equals)Total Potential Market Base
(times) Potential Capture Rate
(equals) Demand Potential
Total Market Rate Demand Potential
(plus) Demand From Outside Market Area (30%)
(equals) Total Demand Potential
(minus) Existing Independent Unite
(equals) Excess Market Area Demand Potential
(times) Estimated Percent Capturable on the Site
(equals) Excess Independent Demand Capturable on the Site
2007
Age of Householder
2012
Age of Householder
65-74 75+
10,505 8,949
+ 1,644 2,856
x 87% 73%
= 11,935 11,034
x 2.5% 9.0%
65-74 75+
12,200 8,465
+ 2,070 2,990
x 87% 73%
= 14,001 10,648
x 3.0% 9.5%
298 993 I 420 1,012 I
1
= 1,291
553
1
1,432
614
= 1,844
- 1,150
= 2,045
1,434
— 694 = 611
x 30% x 30%
208 183
'2012 calculations define income-qualified households as all households with incomes greater than $34,000 plus homeowner households with incomes
between $22,500 and $33,999.
2 Includes existing and pending units at 95% occupancy. Due to its location just outside the Market Area, we include only 50% of the units at Walker Tree
Tops. 2012 calculations include 210 independent units to be developed by Presbyterian Homes in Eden Prairie and 2/3rds (89 units) of the catered living
units to be developed at Portland Commons in Bloomington.
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 38
DEMAND ANALYSIS
Demand for Assisted Living Senior Housing
Table 13 presents our demand calculations for assisted living senior housing in the Bloomington
Market Area in 2007 and 2012.
The availability of more intensive support services such as meals, housekeeping, and personal
care at assisted living facilities usually attracts older, frailer seniors. Hence, the age-qualified
market for assisted living housing is defined as seniors ages 75 and over.
In addition to seniors who are qualified based on their incomes alone, there is a substantial base
of senior households with lower incomes who own their homes. These seniors have an untapped
source of equity that can be used as supplemental income to defray the additional costs incurred
by living in housing alternatives with services. There are a significant number of seniors who
will spend down their assets or will receive financial assistance from family members in order to
avoid institutional care. With the 2007 average home resale value of about $258,000 in the City
of Bloomington and $343,200 in the Remainder of the Market Area, there would be a significant
number of seniors who would be able to derive a substantial amount of additional income from
the sale of their single-family homes.
Because the vast majority (90% according to the latest ALFA survey) of assisted living residents
are single, our demand methodology separates the number of senior households who live alone
from those who live with a spouse or other relative. We have further broken down the number of
senior households by household type and income. From these figures, we have applied accepta-
ble capture rates for each income cohort and household type to derive the potential age, income,
and asset-qualified market. As of 2007, there are an estimated 8,850 qualified older seniors in
the Market Area.
Demand for assisted living housing is need-driven, which reduces the qualified market to only
the portion of seniors who need assistance. Studies by government agencies indicate that about
30% of all seniors age 75 and over need assistance with at least three activities of daily living.
Applying this proportion to the qualified household base yields a potential assisted living market
of an estimated 2,655 seniors in the Market Area in 2007.
We estimate that roughly 60% of the qualified market needing significant assistance with ADLs
will be able to remain in their homes with the assistance of a family member or home health
care. The remaining 40% will need assisted living housing. Applying this market penetration
rate results in demand for about 1,060 assisted living units in 2007.
A portion of demand for assisted living units in the Market Area, we estimate 30%, will come
from outside the Market Area. This secondary demand will include households currently living
just outside the Market Area, former residents, parents of adult children that desire supportive
housing near their adult children, and increasingly frail retirees returning from retirement com-
munities. Applying this figure results in total potential demand for approximately 1,520 assisted
living units in 2007.
MAXFIELD RESEARCH INC. 39
DEMAND ANALYSIS
TABLE 13
ASSISTED LIVING DEMAND
BLOOMINGTON MARKET AREA
2007 & 2012
NIIIIIIIIIMMIIIIIMMMIIIIIIIIIIIIIEIIIIM 2012
Less then $20,000
$20-$34,999
$35,000+
HHs 75+ Capture Potential
Lvg. Alone Rate HI-Is
Non-single Capture Potential
HH's 75+ Rate HHs
HHs 75+ Capture Potential
Lvg. Alone Rate HHs
Non-single Capture Potential
HI-I's 75+ Rate HHs
3,317 20% 663 660 15% 99 Less then $22,500 3,420 20% 684 680 15% 102
1,897 80% 1,517 2,283 25% 571 $22,500438,999 1,791 80% 1433 2,156 25% 539
2,194 100% 2,194 5,432 70% 3802 $39,000+ 2,160 100% 2160 5,348 70% 3743
Total 7,408 4,375 8,375 4,472 Total 7,371 4,277 8,184 4,384
..,/-----.2 y J
Total Potential Market 8,847 8,661
Percent Needing Assistance w/ 3-6 ADLs x 30% x 30% (times)
(equals) Age/Income Qualified Market Needing Assistance = 2,654 = 2,598
Market Penetration Rate x 40% x 40% (times)
(equals) Short-Term Demand = 1062 = 1039
(plus) Proportion From Outside the Market Area (30%) + 454 + 445
(equals) Total Potential Assisted Living Demand = 1,517 = 1,485
Existing Assisted Living Units 902 - 1,016 (minus)
(equals) Total Excess Assisted Living Demand in the Market Area = 615 = 469
(times) Estimated Percent Capturable by the Proposed Development x 30% x 30%
Cetitiiil*FilaiMitiikted;LiViiitileitillidiCiiittittible::byitlieTtbiitiiedVekeloinllei J84. - 141 •
Source: Maxfield Research Inc.
MAXFIELD RESEARCH INC. 40
DEMAND ANALYSIS
We then subtract existing assisted living units in the Bloomington Market Area. As of January
2008, there are a total of 949 assisted living units, of which 902 would be competitive with an
additional assisted living facility in the Market Area after accounting for a 5% vacancy rate.
Remaining Market Area excess demand exists for an estimated 615 assisted living units.
No single development can capture all of the potential demand in a given market area; therefore,
in consideration of Site location and incomes required to reside at the subject community, we
believe the proposed development can capture approximately 30% of the demand potential in the
Bloomington Market Area. Applying a 30% capture rate results in demand for about 185
units of assisted living in 2007.
The same calculations are applied to the age, income, and asset-qualified base in 2012. Some
potential demand will be satisfied by the approved Presbyterian Homes development in Eden
Prairie (75 assisted living units) and Portland Commons development in Bloomington (one-third
of the 134 catered living units). Including these units at 95% occupancy, total potential de-
mand for assisted living housing is expected to decrease to about 140 units through 2012.
Demand for Memory Care Senior Housing
Table 14 presents our demand calculations for memory care senior housing in the Bloomington
Market Area in 2007 and 2012.
Demand is calculated by starting with the estimated Market Area senior (65+) population in 2007
and multiplying by the 8% incidence rate of Alzheimer's/dementia among this population. This
yields a potential market of about 3,585 seniors in the Bloomington Market Area. According to
data from the National Institute for Aging, about 25% of all persons with memory care impair-
ments would be potential candidates for memory care housing units. This figure considers that
seniors in the early stages of dementia will still be able to live independently with the care of a
spouse or other family member, while those in the later stages of dementia will require intensive
medical care that would only be available in skilled care facilities. Applying this figure to the
estimated population with memory impairments yields a potential market of nearly 900 seniors
in the Bloomington Market Area in 2007.
Because of the staff-intensive nature of dementia care, monthly fees for this type of housing typ-
ically start at about $4,000. Residents of designated memory care housing often contribute 90%
or more of their incomes for monthly fees. Thus, the income-qualified market was determined as
individuals with incomes of $50,000 or more, or incomes of $40,000 and non-income producing
assets of $200,000 or more that could be converted to monthly income (i.e. senior homeowners
earning $40,000 or more). As with all senior housing with services, a portion of this demand
will also come from seniors who are willing to spend down assets and/or receive financial assis-
tance from family members.
Based on our review of senior household incomes in the Market Area, homeownership rates, and
home resale data, we estimate that 40% of all seniors in the Market Area would have incomes
and/or assets to sufficiently cover the costs for memory care housing at the subject development.
MAXFIELD RESEARCH INC. 41
DEMAND ANALYSIS
This figure takes into account two-person households where one spouse may have memory care
needs and allows for sufficient income for the other spouse to live independently. Multiplying
the potential market (896 seniors) by 40% results in a total of 360 seniors who would age, in-
come, and asset-qualified in 2007.
We estimate that 30% of the overall demand for memory care housing in Bloomington would
come from outside the Market Area for a total demand for about 510 units in 2007. After sub-
tracting the existing competitive units less a 5% vacancy rate, we fmd the total demand potential
for memory care housing to be an estimated 250 memory care units.
TABLE 14
MEMORY CARE DEMAND
BLOOMINGTON MARKET AREA
2007 & 2012
2007 2012
65+ Population 44,786 48,850
(times) 8% Dementia Incidence Rate x 8% x 8%
(equals) Estimated Senior Pop. with Dementia = 3,583 = 3,908
(times) Percent Needing Specialized Memory Care Assistance x 25% 25%
(equals) Total Need for Dementia Care = 896 = 977
(times) Percent Income/Asset-Qualified x 40% x 40%
(equals) Total Income-Qualified Market Base = 358 = 391
(plus) Demand from Outside Market Area (30%) + 154 + 167
Total Demand for Memory Care Units 512 558
(minus) Existing and Pending Memory Care Units - 265 327
(equals) Demand Potential for Memory Care in Market Area = 247 = 231
(times) Percent Capturable by the Proposed Development x 35% x 35%
(equals) Excess IVIemory Care Demand by the Proposed Development = 86 81
' Considers existing and pending units at 95% occupancy.
Source: Maxfield Research Inc.
We have estimated that the subject Site can capture approximately 35% of all the demand in the
Bloomington Market Area. Excess demand is calculated for about 85 memory care units that
could be captured by the proposed development in 2007.
The same calculations were applied to the projected age, income, and asset-qualified base in
2012 to determine demand for memory care housing over the next five years. Through 2012,
some additional demand would be satisfied by the current projects in the development pipeline,
including English Suites Home (6 units), Presbyterian Homes development in Eden Prairie (27
units), and Portland Commons in Bloomington (32 units). After accounting for these pending
units at 95% occupancy, we project demand for memory care units over the next five years
will remain relatively constant at about 80 units.
MAXFIELD RESEARCH INC. 42
Demand eniniridde on the
RECOMMENDATIONS AND CONCLUSIONS
Introduction
Based on our analysis of the market dynamics impacting demand for senior housing in the
Bloomington Market Area, we find market potential for additional senior housing that could be
supported on the subject Site. Numerically, demand exists for approximately 210 congregate
units, 185 assisted living units and 85 memory care units. Over the next five years, some de-
mand would be satisfied by approved developments that are currently in the development pipe-
line. These developments have been included in the demand calculations for senior housing in
2012. A summary of demand that could be captured by the subject Site currently and over the
next five years is displayed in Table 15.
TABLE 15
DEMAND SUMMARY
BETHANY BLOOMINGTON SITE
2007 & 2012
2007
2012
Congregate 208 183
Assisted Living 184
141
Memory Care 86 81
Total Units 478 405
Source: Maxfield Research lnc.
Review of the Proposed Development Concept
As proposed, the Bloomington Bethany senior campus would be a 182-unit senior housing com-
munity, of which 99 units would be congregate (i.e. independent living with services), 66 units
would be assisted living, and the remaining 17 units would be memory care. The quality and
desirability of the subject Site, demographic characteristics of the Market Area, and high quality
of housing provided by Senior Housing Partners would serve the subject development well.
Based on our assessment, we believe the market could support the quantity and service-mix of
the proposed development.
The proposed unit mix, sizes and rents as supplied by Senior Housing Partners is summarized in
Table 16, located on the following page. In addition to monthly rent, the community would re-
quire an initial entrance fee for independent living units. These entrance fees are based on unit
square footage ($85 per square foot) and range from $62,900 to $181,050. The requirement of
an entrance fee at a complex tends to attract senior households that would have a higher thre-
shold of affordability than would a purely rental model. Similarly, due to the rents and entrance
fees of the subject development, the community will likely attract mostly higher-income seniors
who are able and willing to afford these units.
MAXFIELD RESEARCH INC. 43
RECOMMENDATIONS AND CONCLUSIONS
TABLE 16
PROPOSED DEVELOPMENT CONCEPT
SENIOR HOUSING CAMPUS
BLOOMINGTON, MINNESOTA
JANUARY 2008
No. of Entrance Unit Size Monthly Fee per Deposit per
Unit Type Units Monthly Fees Deposit (Sq. Ft.) Square Foot Square Foot
Coitivegate -.
1BR 10 $1,254 $64,600 760 $1.65 $85.00
I BR 1 $1,345 $69,275 815 $1.65 $85.00
1BR + Sunroom 15 $1,485 $76,500 900 $1.65 $85.00
I BR 2 $1,568 $80,750 950 $1.65 $85.00
1BR 2 $1,658 $85,425 1,005 $1.65 $85.00
1BR (HC) 1 $1,221 $62,900 740 $1.65 $85.00
1BR+ 2 $1,708 $87,975 1,035 $1.65 $85.00
2BR 6 $1,733 $89,250 1,050 $1.65 $85.00
2BR 11 $1,865 $96,050 1,130 $1.65 $85.00
2BR 2 $1,881 $96,900 1,140 $1.65 $85.00
1BR + Sunroom 4 $1,906 $98,175 1,155 $1.65 $85.00
2BR 2 $1,964 $101,150 1,190 $1.65 $85.00
2BR + Sunroom 1 $2,558 $131,750 1,550 $1.65 $85.00
2BR + Sunroom 22 $2,096 $107,950 1,270 $1.65 $85.00
I BR + Sunroom 1 $2,021 $104,125 1,225 $1.65 $85.00
2BR + Sunroom 1 $2,772 $142,800 1,680 $1.65 $85.00
2BR + Den 12 $2,739 $141,100 1,660 $1.65 $85.00
2BR + Family Room 4 $3,515 $181,050 2,130 $1.65 $85.00
SubtotaVAverage 99 $1,958 $100,867 1,187 $1.65 $85.00
AiiiiiiidLiviiik.
Studio 3 $2,750 495 $5.56
1BR 42 $3,050 --- 600 $5.08
1BR 3 $3,150 665 $4.74
1BR 6 $3,150 695 $4.53
2BR 6 $3,600 --- 970 $3.71 ---
2BR 6 $3,700 1,045 $3.54
Subtotal/Average 66 $3,159 681 $4.64
Meiiiiiii: are.
Studio 3 $3,100 460 $6.74
1BR 10 $3,400 600 $5.67
1BR 2 $3,550 735 $4.83
2BR 2 $3,950 975 $4.05
Subtotal/Average 17 $3,429 635 $5.40
Bethany Senior Total 182
Source: Senior Housing Partners
Congregate Senior Housing
As proposed, congregate units would include one-bedroom units that would range from 740
square feet to 1,155 square feet and two-bedroom units that would range from 1,050 square feet
to 2,130 square feet. Some of these units would also have dens, sunrooms and/or family rooms.
Monthly rent per square foot basis is $1.65 for all congregate units. Based on preliminary plans,
residents would choose from 20 floor plans when selecting their unit. On a weighted average
MAXFIELD RESEARCH INC. 44
RECOMMENDATIONS AND CONCLUSIONS
basis, the monthly rent would be $1,958 for a 1,187-square-foot unit with a required $100,867
entrance fee.
We believe the pricing of the subject development would be appropriate for the target market
that would comprise the tenant base of the complex. The variety of unit types and sizes would
be attractive to seniors and their families who are looking for an appropriate housing option.
Congregate units are proposed to include individually controlled heat/air; kitchens with a refrige-
rator, stove/self-cleaning oven, dishwasher, microwave, and garbage disposal; in-unit washer and
dryer; window coverings; oak cabinetry; and private deck or patio.
The following amenities are proposed to be included in the monthly rent:
• All utilities, including heat, electric, central air conditioning, water, sewer, and trash;
• Basic satellite service and installation;
• Telephone;
• Continental breakfast;
• Scheduled transportation to shopping and outings;
• Spiritual care program;
• Emergency call system;
• Monitored smoke detector;
• Controlled access;
• Month-to-month residency agreement;
• Apartment and building maintenance, including lawn care and snow removal;
• Property tax and building insurance;
• Priority access to other Presbyterian Homes & Services housing and care options
based on availability;
• Professional management;
• Smoke-free environment; and
• Pet policy.
Additional services and other conveniences would be available for additional fees:
• Underground heated parking with indoor heated car wash bay;
• Storage units;
• Restaurant-style dining;
• Personal home care services;
• Banking services;
• Housekeeping;
• Handyman;
• Guest meals; and
• Guest suite.
MAXFIELD RESEARCH INC. 45
RECOMMENDATIONS AND CONCLUSIONS
Assisted Living Senior Housing
Assisted living units would include a mix of studio, one-bedroom and two-bedroom units. Stu-
dio units would be 495 square feet with a monthly rent of $2,750. One-bedroom units range
from 600 square feet to 695 square feet and rent from $3,050 to $3,150. Two-bedroom units
would be 970 square feet to 1,045 square feet with a monthly rent of $3,600 to $3,700. In addi-
tion to the base rent, residents would be assessed a personal care fee based on the amount of as-
sistance they need with activities of daily living.
We believe the unit types, mix, sizes and rents would be well-received by senior and their fami-
lies and would appropriately attract the target market for the subject development.
Assisted living units are proposed to include: individually controlled heat/air; kitchens with a
refrigerator, stove/self-cleaning oven, and microwave; window coverings; oak cabinetry; and
bathroom with roll-in shower and grab bar. The assisted living component would also feature a
centralized congregate dining/activity area, a lounge area for intimate gatherings, and a library.
The following amenities are proposed to be included in the monthly rent:
• All utilities, including heat, electric, central air conditioning, water, sewer, and trash;
• Basic satellite service and installation;
• Telephone;
• Choice of two meals daily;
• Weekly housekeeping and linen change;
• Personal pendant urgent call system;
• Scheduled transportation to shopping and outings;
• Spiritual care program
• Complimentary use of laundry facilities;
• Monitored smoke detector;
• Controlled access;
• Month-to-month residency agreement;
• Priority access to other Presbyterian Homes & Services housing and care options
based on availability;
• Smoke-free environment; and
• Pet policy.
Additional services and other conveniences would be available for additional fees:
• Access to personal care 24 hours a day;
• Assistance with arranging transportation to medical and social service appointments;
• Assistance with accessing community resources and social services;
• Additional housekeeping;
• Laundry service;
• Availability of third daily meal;
• Restaurant-style dining;
IVIAXFIELD RESEARCH INC. 46
RECOMMENDATIONS AND CONCLUSIONS
• Guest meals; and
• Guest suite.
Memory Care Senior Housing
Memory care units would be a mix of studios, one-bedroom and two-bedroom units with unit
sizes ranging between 460 square feet and 975 square feet. Base pricing would be $3,100 for
studios up to $3,950 for two-bedroom units. Like assisted living, residents of memory care hous-
ing would pay an additional fee for personal care services depending on the amount of assistance
they require.
We believe the unit types, mix, sizes and rents would be well-received by senior and their fami-
lies and would appropriately attract the target market for the subject development.
The following amenities and services are proposed to be included in the monthly rent:
• All utilities, including heat, electric, central air conditioning, water, sewer, and trash;
• Basic satellite service and installation;
• Local telephone;
• Three daily meals and snacks in family dining room;
• Weekly housekeeping and linen change;
• Personal laundry (three loads/week);
• The DOVE program (described below);
• Spiritual care program;
• Personal pendant urgent call system;
• Residential setting with controlled access;
• Priority access to other Presbyterian Homes & Services housing and care options
based on availability; and
• Smoke-free environment.
Additional services and other conveniences would be available for additional fees:
• Assistance with arranging transportation to medical and social service appointments;
• Assistance with accessing community resources and social services;
• Additional loads of laundry;
• Guest meals; and
• Guest suite.
Based on the programming of Presbyterian Homes and Services, the development sponsor, resi-
dents of the memory care component would be engaged in the DOVE Program, which focuses
on three areas: life skills, life-enrichment, and self-care. According to information provided by
the sponsor, these activities and programming are described below:
• Life-skill activities help recall the person's various roles in life. Some examples in-
clude setting tables, doing office work, sharing hobbies or caring for a pet.
IVIAXFIELD RESEARCH INC. 47
RECOMMENDATIONS AND CONCLUSIONS
• Recreational and life-enriching activities provide an ongoing opportunity to engage in
social gathering or enjoy leisure activities. A wide range of activities may be offered
such as leisure and quiet time, exercise, cognitive stimulation from current events and
life review, baking, reading, playing a game, or spiritual reading and prayer.
• Participation in self-care activities gives each individual a sense of independence and
price and enhances self-esteem. Dressing and grooming as well as bathing are exam-
ples of cares in which each resident is encouraged to assist.
Design features unique to the memory care wing should include a separate dining area, activity
areas for both passive and active programming and a secured landscaped outdoor plaza area for
wandering and exercise. A conference/meeting room should also be incorporated if not available
elsewhere on campus. Color schemes in the hallways should be utilized, as should ledges or
boxes outside each unit for residents to personalize to assist the residents in orientation. Hall-
ways should be large enough for residents to roam freely and designed as not to dead-end. Ap-
propriate lighting will also be important as these residents are often more sensitive to light.
We also highly suggest each unit contain its own bathroom with walk-in shower for added priva-
cy and that residents be allowed to bring with them there own furniture and other keepsakes to
familiarize themselves to their new home.
Competitive Advantages of the Proposed Development
Several features of the proposed development establish a competitive market position for the de-
velopment. Identifying these features and capitalizing on them in the marketing campaign will
allow the project to attract and maintain a sizable portion of the target market for service-
enhanced housing in the Bloomington Market Area.
• The proposed project sponsors will be Presbyterian Homes and Bethany College of Mis-
sions. Presbyterian Homes has established an identity of being a premier provider of se-
nior housing with services. The proposed development concept is consistent with the ex-
isting image of the provider, which should create name recognition and bolster interest in
the proposed development.
• The characteristics of the Site, particularly the picturesque setting and access to area re-
sources, further enhance the marketability of the project. We find the location to be a
unique setting for senior housing within a closer in suburb.
• The provision of service-enhanced housing across the continuum of care model will al-
low seniors to age in place within the facility while still attending to their increasing ser-
vice needs. As such, less intensive housing will serve as a natural feeder to more inten-
sive housing throughout this life cycle process, increasing the sense of security for resi-
dents and allowing the development to have high resident retention rates.
MAXFIELD RESEARCH INC. 48
RECOMMENDATIONS AND CONCLUSIONS
Projected Absorption
Based on our review of the current and projected housing needs of senior households in the
Bloomington Market Area and our assessment of the existing competitive market, we believe
that the proposed project should experience relatively steady absorption of units. And, due to the
substantial waiting list at the Presbyterian Homes of Bloomington Gideon Pond campus, we be-
lieve the proposed units will fill very rapidly.
For the 99 congregate units, we forecast that stabilized occupancy (95%) would be reached in
approximately twelve to 15 months of initial occupancy. This assumes that 45% of the units
would be preleased and that the remaining 49 to 50 units will be leased at an average rate of 3.50
to 4.00 units per month.
We forecast that the 66 assisted living units would reach stabilized occupancy (95%) in approx-
imately twelve to 15 months. This assumes that 35% of the units would be preleased and that the
remaining 39 to 40 units will be leased at an average rate of 2.50 to 3.25 units per month.
For the 17 memory care units, we forecast that stabilized occupancy (95%) would be reached
within six to ten months of initial occupancy. This assumes that 35% of the units would be pre-
leased and that the remaining ten units will be leased at an average rate of 1.50 to 2.00 units per
month.
These absorption rates assume our recommendations for the proposed senior housing develop-
ment are accepted and that the project begins marketing in the spring or summer months. With
several competitive development currently in the preliminary stages, we acknowledge that the
addition of these projects and/or a winter opening could extend the absorption period somewhat.
Marketing Considerations
The quality and extent of the marketing effort will determine the rate of leasing. We recommend
the following marketing strategies:
Once development plans are finalized, begin marketing as early in the development process
as possible. With several preliminary projects identified in or near the Market Area, timely
promotion will be essential for the project to meet projected absorption rates.
• Establish a web presence for the project early in the marketing period. Although seniors
looking for housing alternatives may not fully utilize online resources, the intemet would be
an appropriate tool to educate adult caregivers, who often provide primary support in the se-
lection of housing products, on potential housing options for their senior parents.
• Develop attractive brochures detailing information on support services, building design, fea-
tures, amenities, and monthly fees. These items should be made available prior to construc-
tion of the new facility. Create separate marketing materials that provide tailored informa-
tion for seniors as well as adult caregivers in the Market Area.
MAXFIELD RESEARCH INC. 49
RECOMMENDATIONS AND CONCLUSIONS
• Allow adequate time for Market Area education and marketing efforts. Seniors who need
extra income through the sale of their home might need six months or more to prepare their
home for sale and to find a buyer, especially if the home is older, smaller, or in need of re-
pair.
• Open houses and tours should be implemented to give area seniors and caregivers a chance to
become acquainted with the campus. Until open houses are available at the proposed Site,
we suggest providing open houses at a nearby Senior Housing Partners campus that would be
similar to the development.
• Foster collaboration from the larger Presbyterian Homes & Services network of senior hous-
ing developments that would redirect residents to the Bloomington project if they are unable
to find housing that meets their needs at another location.
• In the years forward, we recommend that all seniors who reside at the campus have priority
admission to the various levels of service-enhanced housing as their service needs change,
increasing the security for residents and the marketability of the project overall.
• Future referrals will come from residents and families of residents; therefore, it is important
to continually maintain a high-level of quality, service, and staffing in all service levels of the
campus.
MAXFIELD RESEARCH INC. 50
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF BLOOMINGTON
The undersigned duly qualified and acting City Clerk of the City of Bloomington hereby
certifies that attached hereto is a true and correct copy of the original Resolution No. 2008-113, a
resolution approving the issuance by the Housing and Redevelopment Authority in and for the
City of Bloomington of revenue obligations under Minnesota Statutes, Chapter 462C, to finance
a portion of a multifamily housing development for seniors; approving a related housing
program; consenting to and approving the issuance by certain other issuers of revenue
obligations to finance the multifamily housing development; and approving a cooperation
agreement and certain actions related to the foregoing. Passed and adopted September 22, 2008.
This resolution is on file in the office of the City Clerk, City of Bloomington, Minnesota.
41--74f_aZ
Thomas P. Ferber, City Clerk
Dated this 25th day of September, 2008.
RESOLUTION NO. 2008-113
CITY OF BLOOMINGTON, MINNESOTA
APPROVING THE ISSUANCE BY THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF BLOOMINGTON OF REVENUE
OBLIGATIONS UNDER MINNESOTA STATUTES, CHAPTER 462C, TO
FINANCE A PORTION OF A MULTIFAMILY HOUSING DEVELOPMENT
FOR SENIORS; APPROVING A RELATED HOUSING PROGRAM;
CONSENTING TO AND APPROVING THE ISSUANCE BY CERTAIN OTHER
ISSUERS OF REVENUE OBLIGATIONS TO FINANCE THE MULTIFAMILY
HOUSING DEVELOPMENT; AND APPROVING A COOPERATION
AGREEMENT AND CERTAIN ACTIONS RELATED TO THE FOREGOING
BE IT RESOLVED By the City Council of the City of Bloomington, Minnesota (the "City") as
follows:
Section 1. Findinas
WHEREAS, pursuant to the Constitution and laws of the State of Minnesota, particularly
Minnesota Statutes, Chapter 462C, as amended (the "Act"), Minnesota cities are authorized to carry out
the public purposes described therein and contemplated thereby in the financing of multifamily housing
developments by issuing revenue bonds to defray, in whole or in part, the development costs of a
multifamily housing development, and by entering into any agreements made in connection therewith and
by pledging any such agreements as security for the payment of the principal of and interest on any such
revenue bonds.
WHEREAS, the Housing and Redevelopment Authority in and for the City of Bloomington,
Minnesota ("Bloomington HRA") has been authorized by Ordinance No. 92-18 of the City to exercise, on
behalf of the City, the powers conferred by the Act in accordance with the requirements of the Act.
WHEREAS, a multifamily housing development financed under the Act may consist of a
multifamily housing development combined with a new or existing health care facility if: (i) the
multifamily housing development is designed and intended to be used for rental occupancy; (ii) the
multifamily housing development is designed and intended to be used primarily by elderly or physically
handicapped persons; and (iii) nursing, medical, personal care, and other health related assisted living
services are available on a 24-hour basis in the multifamily housing development to the residents.
WHEREAS, Bloomington Bethany Senior Housing, Inc., a Minnesota nonprofit corporation (the
"Company"), has requested the participation of the City and the Authority in the financing of the
acquisition, construction, and equipping of a senior multifamily housing facility consisting of a 182-unit
senior living community consisting of 99 independent living units, 66 assisted living units and
17 memory care units (the "Project") to be located at 11501 Hampshire Road, 11551 Hampshire Road,
and 11601 Hampshire Road in the City.
WHEREAS, the City is authorized and empowered, pursuant to the Act, to carry out the public
purposes described therein by authorizing other municipalities of the State of Minnesota to finance, in
whole or in part, the costs of the acquisition, construction, reconstruction, improvement, betterment, or
extension of housing developments located in the City under the Act and Minnesota Statues,
Section 471.656, as amended, and Minnesota Statutes, Section 471.59, as amended (collectively, the
"Cooperation Act").
1
WHEREAS, pursuant to the Act and the Cooperation Act, the City proposes to enter into a
Cooperation Agreement, dated on or after October 1, 2008 (the "Cooperation Agreement"), with the
Bloomington FIRA, the Hennepin County Housing and Redevelopment Authority ("Hennepin County
HRA"), the Burnsville Economic Development Authority ("Burnsville EDA"), and the City of Eden
Prairie, Minnesota ("Eden Prairie" and, collectively with the Bloomington ERA, the Hennepin County
FIRA, and the Burnsville EDA, the "Issuers"), pursuant to which each of the Issuers will issue revenue
obligations for the purposes described below.
WHEREAS, pursuant to the requirements of Section 462C.04 of the Act, a Housing Program for
a Multifamily Housing Development (the "Housing Program") with respect to the Project and the
issuance of revenue obligations by the Issuers to finance the Program and the Project has been prepared
and is on file with the City.
WHEREAS, on September 22, 2008, the City conducted a public hearing on the Program, the
Project, and the issuance of revenue obligations by the Issuers, notice of which hearing (the "Public
Notice"), was published as required by Minnesota Statutes, Section 462C.04, subdivision 2, of the Act,
and Section 147(f) of the Internal Revenue Code of 1986, as amended. The Public Notice provided a
general, functional description of the Project, as well as the maximum aggregate face amount of the
obligations to be issued for the purposes referenced above, the identity of the initial owner, operator, or
manager of the Project, and the location of the Project. The Public Notice was published in the Sun-
Current, a newspaper circulating generally in the City, on September 4, 2008, a date at least fifteen (15)
days before a meeting of the City Council of the City on September 22, 2008. The City Council of the
City conducted a public hearing at which a reasonable opportunity was provided for interested individuals
to express their views, both orally and in writing, on the Project and the proposed issuance of such
revenue obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BLOOMINGTON, MINNESOTA THAT:
Section 1. Approval of Issuance of Notes by Issuers.
1.01 This Council hereby approves the issuance of revenue obligations by the Bloomington
BRA (the "Bloomington }{RA Bonds") in the principal amount of up to $10,000,000 to finance the
Project, subject to final approval by the Board of Commissioners of the Bloomington BRA following the
preparation of bond documents, and subject to final determination by the Board of Commissioners that
the financing of the Project and the issuance of the Bloomington ITRA Bonds are in the best interests of
the City and the Bloomington HRA.
1.02. The City hereby approves and authorizes: (i) the issuance of revenue obligations by the
Hennepin County HRA (the "Hennepin County HRA Bonds") in a principal amount of up to $10,000,000
to finance a portion of the Project; (ii) the issuance of revenue obligations by the Burnsville EDA (the
"Burnsville EDA Bonds") in a principal amount of up to $10,000,000 to finance a portion of the Project;
and (iii) the issuance of revenue obligations by Eden Prairie (the "Eden Prairie Bonds") in a principal
amount of up to $10,000,000 to finance a portion of the Project. The Bloomington BRA Bonds, the
Hennepin County HRA Bonds, the Burnsville EDA Bonds, and the Eden Prairie Bonds are collectively
referred to herein as the "Bonds." The proceeds derived from the sale of the Bonds are to be loaned to the
Company pursuant to the terms of loan agreements between the respective Issuers and the Company (the
"Loan Agreements"). The proceeds of such loans will be disbursed to the Company pursuant to the terms
of a Servicing and Intercreditor Agreement, dated on or after October 1, 2008 (the "Servicing
Agreement"), between the Issuers, a servicer named therein (the "Servicer"), and certain lenders named
therein, and a Disbursing Agreement, dated on or after October 1, 2008 (the "Disbursing Agreement"),
between the Company, the Servicer, and a disbursing agent named therein (the "Disbursing Agent").
1.02 The total cost of the Project is approximately $36,700,000. In order to issue all of the
indebtedness with respect to the Project as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), the Company has
requested that the Issuers issue "qualified tax-exempt obligations" in respective principal amounts not in
excess of $10,000,000 and in an aggregate principal amount not to exceed $31,000,000.
1.03 The Bonds are to be issued pursuant to authority granted by the Act. The Bonds will
constitute obligations secured solely by the Project, revenues derived from the operation of the Project,
and other security provided by the Company. The Bonds will not constitute general or moral obligations
of the Issuers or the City or be secured by any taxing power of the Issuers or the City.
1.04. The City has determined that it is desirable, feasible, and consistent with the objectives
and purposes of the Act, and it is in the best interests of the City, to approve the issuance of the Bonds by
the Issuers to provide financing for the acquisition, construction, and equipping of the Project, including
the funding of appropriate reserves, the costs of issuance, and other related costs with respect to the
Bonds and the Project.
Section 2. Housing Program. The City submitted the Housing Program to the Metropolitan
Council for its review and comment. All comments received from the Metropolitan Council were
presented to this Council on or prior to the public hearing.
Section 3. Approval of Cooperation Agreement. The Cooperation Agreement shall constitute an
irrevocable agreement of the City and the Issuers that the principal amount of each series of Bonds bears
a reasonable relationship to the respective benefits received by each of the Issuers. The Mayor and the
City Manager are hereby authorized and directed to execute the Cooperation Agreement, and when
executed and delivered as authorized herein, the Cooperation Agreement shall be deemed to be a part of
this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force
and effect from the date of execution and delivery thereof. The Cooperation Agreement shall be
substantially in the form on file with the City on the date hereof, which is hereby approved, with such
necessary variations, omissions, and insertions as are not materially inconsistent with such forms and as
the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be
conclusive evidence of such determination.
Section 4. Documents Furnished to Bond Counsel
4.01. The Mayor, City Manager, and other officers of the City are authorized and directed to
furnish to Kennedy & Graven, Chartered, as bond counsel ("Bond Counsel"), certified copies of all
proceedings and records of the City relating to the Housing Program and the Cooperation Agreement, and
such other affidavits, certificates, and other documents as may be required by Bond Counsel to show the
facts relating to the legality of the Housing Program and the Cooperation Agreement and related
documents, as such facts appear from the books and records in the custody and control of such officers or
as otherwise known to them; and all such certified copies, certificates, affidavits, and other documents,
including any heretofore furnished, shall constitute representations of the City as to the truth of all
statements contained therein.
Section 5. Costs. The Company will, upon demand, reimburse the City for costs paid or incurred
by the City in connection with this resolution, the Housing Program, and the Cooperation Agreement.
3
Section 6. Effective Date. This Resolution shall be in full force and effect from and after its
passage this 22nd day of October, 2008.
Attest:
Secretary to Council
13L130-125 (JU)
339366v.1
4
RESOLUTION NO. 2008-113
The attached resolution was adopted by the City Council of the City of Bloomington on
September 22, 2008.
The question was on the adoption of the resolution, and there were
nay votes as follows:
7 aye votes and
CITY OF BLOOMINGTON
COUNCIL MEMBERS
Aye Nay Other
Gene Winstead
Rod Axtell
Steve Elkins
Amy Grady
Karen Nordstrom
Steve Peterson
Vern Wilcox
RESOLUTION ADOPTED.
ATTEST:
Secretary to the Council
BL130-129 (.11J)
339455v.2
CITY COUNCIL AGENDA
SECTION: Public Hearings
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Community
Development/Planning
Janet Jeremiah/Regina Herron
ITEM DESCRIPTION:
Menards
ITEM NO.: IX.B.
Requested Action
Move to:
• Continue the Public Hearing to the October 21, 2008, City Council meeting.
Synopsis
Menard Inc. is requesting a continuance to the October 21, 2008 City Council meeting in order to
work on plan revisions, listed in the staff report to the Planning Commission.
Background
The Planning Commission voted 7-0 to recommend approval of the project to the City Council at
the September 8, 2008 meeting.
The 120-Day Review Period Expires on December 12, 2008.
Attachments
1. Letter to residents regarding a continuance.
2. Staff Report
OFC 952 949 8300
FAX 952 949 8390
TDD 952 949 8399
8080 Mitchell Rd
Eden Prairie, MN
55344-4485
EDEN
PRAIRIE
edenprairie.org
September 25, 2008
SUBJECT: MENARDS PUBLIC HEARING TO BE CONTINUED TO THE
OCTOBER 21, 2008 CITY COUNCIL MEETING
Dear Resident:
Menards was published in the Eden Prairie News as a public hearing for the Tuesday, October 7,
2008 City Council meeting. Menard Inc. has asked for a continuance since the revised plans will
not be ready for review by this meeting.
At the October 7, 2008 meeting, the City Council will only make a motion to continue the item
to the Tuesday, October 21, 2008 meeting. Menard Inc. will not be present. There will be no
discussion by staff or the City Council.
Sincerely,
Regina-Herron
Planner II
STAFF REPORT
TO: Planning Commission
FROM: Regina Herron, Planner II
DATE: September 5, 2008
PROJECT: Menards
LOCATION: 12600 Plaza Drive
OWNER/
APPLICANT: Menard Inc.
120 DAY REVIEW: Expires December 12, 2008
REQUEST: 1. Planned Unit Development Concept Review on 15.72 acres
2. Planned Unit Development District Review on 15.72 acres
3. Zoning District Amendment within the Commercial Regional Service
Zoning District on 15.72 acres
4. Site Plan Review on 15.72 acres
Staff Report – Menards
September 5, 2008
Page 2
BACKGROUND
The Comprehensive Guide Plan shows the 15.72 acre property for Regional Commercial land
use. Surrounding land uses consist of Regional Commercial.
The property is zoned Regional Service Commercial.
MAJOR CENTER AREA STUDY
The site is located in Subarea 1 of The Major Center Area Study. Subarea 1 is located north of
Highway 5, west of I-494 and south of Valley View Drive. The current uses within Subarea 1
include retail with no forecasted significant increases in density or intensity. The MCA land use
plan shows this site for Big Box Retail. The proposed use is an appropriate use for Subarea 1.
PROPOSED PLAN
The plan includes:
• Remove the main building.
• Remove the warehouse buildings.
• Keep the strip retail building (23,760 sf.)
• Construct a 2 story building of 210,943 sf.
• Construct a new warehouse building of 42,352 sf.
PLANNED UNIT DEVELOPMENT
The following waivers are requested through the Planned Unit Development:
1. A floor area ratio of 0.401. City code permits up to a 0.40 floor area ratio in the
Commercial Regional Service zoning district. A .40 floor area ratio is a 273,905
square foot building. The proposed building is 274,164 square feet.
2. A base area ratio of 0.205. City code permits up to a 0.20 base area ratio in the
Commercial Regional zoning district.
A .20 base area ratio is 136,952 square feet. The proposed building first floor is 140,301
square feet.
3. Required parking from 1,372 spaces to 526 spaces.
The proof of parking plan shows 995 spaces. If additional parking is needed a deck could
be constructed to provide the additional spaces to meet code. The existing building has a
variance for less parking. The proposed parking is consistent with the Menards parking
standard across the metro.
4. Outside Storage and Display of 44% of the base area of the building City code
permits up to 6% of the base area of the building.
Staff Report – Menards
September 5, 2008
Page 3
The City code limits permanent outdoor sales and display to 6% of the building or 14,675
square feet. Menards has a 108,635 square foot outside yard area. The outdoor storage
area will be screened with a fence and existing trees. The existing outdoor storage area is
260,000 square feet. The city has previously approved waivers for permanent outdoor
display for Bachmans, Frank’s Nursery, and Home Depot provide the area is screened
from public roads and adjacent differing land uses. No outdoor display area will be
allowed in the parking lot or sidewalk area in front of the building.
5. A fence height of 14 feet. City code permits a fence height of up to 6 feet.
The taller fence is needed to screen the outside storage and display of product.
6. Architecture.
Three sides of the retail building meet the 75% face brick, natural stone, or glass
requirement. The rear elevation is 72% face brick and glass and 28% other material. The
plans should be revised to meet the city code. The proposed warehouse building has brick
on one side. The plan should be revised to meet code.
SETBACKS
The plan meets the required setbacks.
LANDSCAPING AND TREE REPLACEMENT
There are no significant trees on the property. The landscaping requirement is 857 inches caliper
inches based on the building size. The plan shows 659 caliper inches. The additional required
inches can be achieved by increasing the size of the proposed trees.
GRADING AND DRAINAGE
Stormwater will be directed towards an onsite NURP pond on the northwest corner of the
property. Two underground infiltration structures are also proposed.
SITE VISION AND ACCESS
Grading and landscaping changes are needed along Plaza Drive to provide appropriate site lines
at the driveway entrances. Staff is currently working with the developer to determine the scope
of the proposed modifications.
The access points along the south side of the property should line up with the parking aisles. If
necessary the existing driveways should be relocated.
ARCHITECTURE
Menards retail building: The proposed Menards retail building meets the exterior building
material standards of at least 75% face brick, natural stone, and glass on three elevations. The
Staff Report – Menards
September 5, 2008
Page 4
rear elevation is at 72% face brick and glass and 28% other material. The plans should be revised
to meet the city code.
Staff recommends additional decorative landscape planter boxes or bowls with annuals, a sitting
area using Menards materials, and a water feature on the left side of the main entrance. The
addition of these features will give visual interest to the front of the building and help break up
the “Big Box” feel.
The proposed Menards retail building is 34 feet tall at the roof deck meeting code. Parapet walls
will screen the rooftop mechanical equipment.
Menards warehouse building: In commercial zoning districts accessory structures are required to
meet the 75% face brick, natural stone, and glass architectural requirement. Brick is proposed on
one side of the accessory building. The plans should be revised to meet code. In addition the
white roof should be change to green to match the green metal panel on the other buildings.
Retail strip center: A façade remodel is shown for the existing retail strip center to match the
proposed Menards store. An EIFS canopy will replace the existing mansard roof.
SIDEWALK IN FRONT OF THE MAIN BUILDING
The sidewalk in front of the main building should be revised to include pavers and plant
materials. This will add some visual interest to the front of the building. This approach would be
similar to the plan in front of Costco (see attachment.)
SIGNS
The proposed wall signs meet code requirements.
SITE LIGHTING
Parking lot lighting is downcast-cutoff fixtures on 30-foot poles. Decorative fence lighting is
proposed near the garden center entrance.
SUMMARY
One of the purposes of a planned unit development as defined by city code is to provide for
greater flexibility and creativity in environmental design than provided under the strict
application of zoning and subdivision regulations. The Commission should consider the
following questions.
1. Does the approach to building architecture and site design, as presented, a better plan
than if no waivers are granted?
2. Is there sufficient creativity in the building design, construction details and materials?
3. Is there adequate parking for the proposed use?
Staff Report – Menards
September 5, 2008
Page 5
The proposed plan results in several improvements to the property. A storm water pond and
underground infiltration treats stormwater. Currently there is no storm water treatment. Site
vision distance can be improved with modification to berm heights and plantings. The proposed
design of the building is better than the existing condition.
STAFF RECOMMENDATIONS
Recommend approval of the following request:
1. Planned Unit Development Concept Review on 15.72 acres
2. Planned Unit Development District Review on 15.72 acres
3. Zoning District Amendment within the Commercial Regional Service Zoning District on
15.72 acres
4. Site Plan Review on 15.72 acres
This is based on plans stamp dated August 14, 2008, and the following conditions:
1. Prior to City Council Review, the proponent shall:
A. Revise plans to meet the 75% face brick, natural stone, and glass exterior building
requirement on all elevations of the warehouse building and the rear elevation of the
Menards retail building.
B. Revise warehouse roof color to match the retail building roof color.
C. The sidewalk in front of the main building should be revised to include pavers and
plant materials
D. Revise berm heights and landscaping to meet site vision distance requirements.
E. Revise plans to line up access points along the south side of the property with the
parking aisles.
2. Prior to grading permit issuance, the proponent shall:
A. Submit detailed storm water runoff, utility, and erosion control plans for review and
approval by the City Engineer and Watershed District Notify the City and
Watershed District 48 hours in advance of grading.
B. Install erosion control at the grading limits.
3. Prior to building permit issuance for the property, the proponent shall:
A. Provide a landscaping surety equivalent to 150% of the cost of the landscaping plan
for 857 caliper inches.
B. Review the plans with the Fire Marshal
C. Provide a Cross-Access Easement for review.
4. The following waivers are granted through the PUD for the project:
Staff Report – Menards
September 5, 2008
Page 6
A. A floor area ratio of 0.401. City code permits up to a 0.40 floor area ratio in the
Commercial Regional Service zoning district.
B. A base area ratio of 0.205. City code permits up to a 0.20 base area ratio in the
Commercial Regional zoning district.
C. Required parking from 1,372 spaces to 526 spaces.
D. A fence height of 14 feet. City code permits a fence height of up to 6 feet.
E. Outside Storage and Display of 44% of the base area of the building. City code
permits up to 6% of the base area of the building.
CITY COUNCIL AGENDA
SECTION: Payment of Claims
DATE:
October 7, 2008
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 178631 – 179512
Wire Transfers 3162 – 3175
160 Therapeutic Recreation 313
702 Sewer Fund 267,290
703 Storm Drainage Fund 26 082703 Storm Drainage Fund 26,082
City of Eden Prairie
Council Check Summary
10/7/2008
Division Amount Division Amount
General 219,410 802 494 Commuter Services 8,163
100 City Manager 250 803 Escrow Fund 22,414
101 Legislative 558 806 SAC Agency Fund 40,150
102 Legal Counsel 40,302 807 Benefits Fund 754,460
104 Contingency 1,367 812 Fleet Internal Service 62,902
110 City Clerk 25,871 813 IT Internal Service 97,988
111 Customer Service 18,571
113 Communications 8,387 Report Totals 3,827,091
114 Benefits & Training 7,542
116 Facilities 46,187
117 City Center 112,466
119 Cmty Center - Facilities 99,945
130 Assessing 546
131 Finance 488
132 Housing and Community Services 220
133 Planning -402
135 Information Technology 60
136 Public Safety Communications 12,160
151 Park Maintenance 48,216
153 Organized Athletics 4,418
154 Community Center 6,982
155 Beaches 448
156 Youth Programs 14,423
158 Adult Recreation 6,547
159 Recreation Administration 831
160 Therapeutic Recreation 313
161 Oak Point Pool 199
162 Arts 7,093
163 Outdoor Center 1,316
164 Park Rental Facilities 298
168 Arts Center 4,754
180 Police 11,316
183 Emergency Preparedness 6,089
184 Fire 24,021
200 Engineering 3,794
201 Street Maintenance 24,027
202 Street Lighting 63,508
301 CDBG 12,766
303 Cemetary Operation 218
304 Senior Board 116
308 E-911 22,220
309 DWI Forfeiture 372
315 Economic Development 2,113
418 HRA 2002A Lease Revenue Bonds 1,050
502 Park Development 20
503 Utility Improvement 26,064
509 CIP Fund 110,133
512 CIP Trails 446
515 Fire Station #4 825
520 Parks Referendum 36
522 Improvement Projects 2006 543,842
601 Prairie Village Liquor 188,776
602 Den Road Liquor 288,178
603 Prairie View Liquor 150,044
605 Den Road Building 1,305
701 Water Fund 376,596
City of Eden Prairie
Council Check Register
10/7/2008
Check # Amount Vendor / Explanation Account Description Business Unit
3162 13,023 ICMA RETIREMENT TRUST-457 Deferred Compensation General Fund
3163 17,596 ORCHARD TRUST CO AS TRUSTEE/CU Deferred Compensation General Fund
3164 200 US BANK TRUST HRA Health and Benefits
3165 32,193 MINNESOTA DEPT OF REVENUE State Taxes Withheld Health and Benefits
3166 168,612 WELLS FARGO MINNESOTA N A SS & Medicare Health and Benefits
3167 96 ADMINISTRATION RESOURCES CORP Other Contracted Services Health and Benefits
3168 13,051 ICMA RETIREMENT TRUST-457 Deferred Compensation General Fund
3169 17,579 ORCHARD TRUST CO AS TRUSTEE/CU Deferred Compensation General Fund
3170 112,889 PUBLIC EMPLOYEES RETIREMENT AS PERA Health and Benefits
3171 11,815 US BANK TRUST HRA Health and Benefits
3172 33,268 MINNESOTA DEPT OF REVENUE State Taxes Withheld Health and Benefits
3173 168,596 WELLS FARGO MINNESOTA N A SS & Medicare Health and Benefits
3174 331 MINNESOTA DEPT OF REVENUE Motor Fuels Fleet Operating
3175 114,517 MINNESOTA DEPT OF REVENUE Cash Over/Short General Fund
178631 370 A MEYER'S ENTERPRISES INC Instructor Service Outdoor Center
178633 177 AAA LAMBERTS LANDSCAPE PRODUCT Repair & Maint. Supplies Water System Maintenance
178634 170 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events
178635 130 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events
178636 288 ABRAKADOODLE Instructor Service Arts & Drama Programs
178637 80 ACTION FLEET INC Equipment Repair & Maint Fleet Operating
178638 964 AIR POWER EQUIPMENT CORPORATIO Contract Svcs - General Bldg Public Works/Parks
178639 195 AMERICAN PAYROLL INSTITUTE INC Dues & Subscriptions Finance
178640 153 AMERIPRIDE LINEN & APPAREL SER Repair & Maint. Supplies Prairie Village Liquor Store
178641 2,588 AMSAN LLC Cleaning Supplies Community Center Maintenance
178642 449 ANCHOR PAPER COMPANY Office Supplies General
178643 51ANDERSON, SALLY Program Fee Red Hat786 3 5 N SON, S og a ee ed at
178644 160 ASPEN MILLS Clothing & Uniforms Communications
178645 5,600 BAKER ASSOCIATES INC Work In Progress Prairie Village Liquor Store
178646 3,821 BELLBOY CORPORATION Transportation Prairie View Liquor Store
178647 35 BERG, RHONDA Health Insurance Health and Benefits
178648 50 BOLD, PAULINE Instructor Service Outdoor Center
178649 50 BOLD, PAULINE Other Contracted Services Sunbonnet Days
178650 253 BOYER TRUCKS Equipment Parts Fleet Operating
178651 4,900 BRAUN INTERTEC CORPORATION Design & Engineering Arts Center
178652 8 BREDOW, VERNETT Program Fee Classes/Programs/Events
178653 551 BRO-TEX INC Equipment Parts Fleet Operating
178654 1,219 BUCK, NATHAN Other Contracted Services Softball
178655 534 CANNON RIVER WINERY Transportation Den Road Liquor Store
178656 1,610 CEMSTONE PRODUCTS COMPANY Repair & Maint. Supplies Storm Drainage
178657 168 CENTERPOINT ENERGY Gas Arts Center Facilities
178659 3,147 CENTURYTEL Telephone IT Telephone
178660 62 CHASKA VALLEY VETERINARY CLINI Canine Supplies Police
178661 51 CHRISTENSEN, MARGE Program Fee Red Hat
178662 586 CLAREYS INC Safety Supplies Sewer System Maintenance
178663 7,980 CONTROLLED AIR Other Contracted Services Rehab
178664 2,324 CORPORATE EXPRESS Office Supplies General
178665 36 DALE GREEN COMPANY, THE Landscape Materials/Supp Park Maintenance
178666 5,803 DAY DISTRIBUTING Beer Prairie View Liquor Store
178667 61 DE LAGE LANDEN FINANCIAL SERVI Other Rentals General
178668 1,755 DECORATIVE DESIGNS INC Contract Svcs - Garden Rm/Caf. City Hall - CAM
178669 2,450 DELL Capital Under $10,000 Capital Impr. / Maint. Fund
178670 200 DIETHELM, TAMMY L Other Contracted Services Pleasant Hill Cemetery
178671 2,566 DIVERSE BUILDING MAINTENANCE Janitor Service Housing & Human Svcs
178672 8 DOLLERSCHELL, JOHN Program Fee Classes/Programs/Events
178673 261 DOMACE VINO Transportation Prairie View Liquor Store
178674 51 DOVER, RUTH Program Fee Red Hat
178675 55 DURHAM, STEVEN Conference Expense Planning
178676 1 308 EAGLEWINECOMPANY Transportation Prairie View Liquor Store1786761,308 EAGLE WINE COMPANY Transportation Prairie View Liquor Store
178677 164 EARL F ANDERSEN INC Signs Traffic Signs
178678 69 ECOLAB INC Contract Svcs - Pest Control Fire Station #4
178679 79 EDEN PRAIRIE WINLECTRIC Other Contracted Services Park Maintenance
Check # Amount Vendor / Explanation Account Description Business Unit
178680 1,771 EF JOHNSON Capital Under $10,000 Wireless Communication
178681 200 ELVIN SAFETY LLC Repair & Maint. Supplies Fire
178682 860 EMERGENCY APPARATUS MAINTENANC Equipment Repair & Maint Fire
178683 1,679 ESS BROTHERS & SONS INC Repair & Maint. Supplies Infiltration/Inflow Study
178684 500 FAHEY, LARRY Other Contracted Services Sunbonnet Days
178685 113 FASTENAL COMPANY Repair & Maint. Supplies Water System Maintenance
178686 535 FASTSIGNS Operating Supplies Round Lake Beach
178687 65 FIRST DISTRICT DOMESTIC VIOLEN Tuition Reimbursement/School Police
178688 113 FLYING CLOUD ANIMAL HOSPITAL Canine Supplies Police
178689 55 FRANZEN, MICHAEL D Conference Expense Planning
178690 350 GASCH III, ROBERT Other Contracted Services Sunbonnet Days
178691 432 GE CAPITAL Other Rentals General
178692 179 GOOD, JAMIE Video & Photo Supplies Police
178693 20 GOT SWAT GEAR.COM INC Clothing & Uniforms Police
178694 540 GOVDELIVERY Software Maintenance IT Operating
178695 6,610 GRAINGER Repair & Maint. Supplies Fire
178696 830 GRANICUS INC Software Maintenance IT Operating
178697 870 GRAPE BEGINNINGS Transportation Den Road Liquor Store
178698 57 GRASSY, SANDY Operating Supplies Engineering
178699 13,306 GRAYMONT Treatment Chemicals Water Treatment Plant
178700 107 GREENMAN TECHNOLOGIES OF MN IN Equipment Parts Fleet Operating
178702 9,596 GRIGGS COOPER & CO Transportation Prairie View Liquor Store
178703 500 HART, JOSEPH Other Contracted Services Sunbonnet Days
178704 2,880 HAWKINS INC Treatment Chemicals Water Treatment Plant
178705 808 HD SUPPLY WATERWORKS LTD Operating Supplies Park Maintenance
178706 44 HENNEPIN COUNTY TREASURER Operating Supplies Girls on the Run
178707 40 HICKMAN, JON Other Contracted Services Sunbonnet Days
178708 1,078 HIRSHFIELDS PAINT MANUFACTURIN Operating Supplies Park Maintenance
178709 1,380 HOHENSTEINS INC Beer Prairie View Liquor Store
178710 28 HORTICULTURE Dues & Subscriptions Park Maintenance787 0 8 OCUU ues & Subsc pt o s a a teace
178711 143 HYDROLOGIC WATER MANAGEMENT Repair & Maint. Supplies Park Maintenance
178712 336 INDUSTRIAL LIGHTING SUPPLY INC Operating Supplies Utility Operations - General
178713 2,925 INFRARED CONSULTING SERVICES I Legal Utility Operations - General
178714 51 IVERSON, MARGARET Program Fee Red Hat
178715 14,260 JJ TAYLOR DISTRIBUTING MINNESO Transportation Prairie View Liquor Store
178717 23,194 JOHNSON BROTHERS LIQUOR CO Transportation Prairie View Liquor Store
178718 81 KEATING, MARY Mileage & Parking Housing and Community Service
178719 738 KEEPERS Clothing & Uniforms Fire
178720 51 KETTLER, PAT Program Fee Red Hat
178721 55 KIPP, SCOTT Conference Expense Planning
178722 11 KRAEMERS HARDWARE INC Supplies - Plumbing Community Center Maintenance
178723 79 LAB SAFETY SUPPLY INC Operating Supplies Utility Operations - General
178724 146 LAKE COUNTRY DOOR LLC Supplies - General Bldg Ice Arena Maintenance
178725 150 LEWIS, BARBARA Deposits Escrow
178726 40 LINDEN, ROSE Program Fee Red Hat
178727 566 LONESKY, JAMES G Other Contracted Services Softball
178728 387 M. AMUNDSON LLP Operating Supplies Prairie View Liquor Store
178729 51 MACDONALD, ELAINE Program Fee Red Hat
178730 477 MACQUEEN EQUIPMENT INC Equipment Repair & Maint Sewer System Maintenance
178731 213 MAGUIRE, CAROLINE Operating Supplies International Festival
178732 365 MAGUIRE, CHARLIE Other Contracted Services Sunbonnet Days
178733 331 MALONE, TOM Instructor Service Preschool Events
178734 10,652 MARK VII Beer Prairie View Liquor Store
178735 51 MCCARTHY, ARDIS Program Fee Red Hat
178736 2,339 MENARDS Small Tools Fire
178737 101 METRO FIRE Protective Clothing Fire
178738 984 METRO SALES INCORPORATED*Office Supplies General
178739 454 METROPOLITAN FORD Equipment Parts Fleet Operating
178740 1,922 MEUWISSEN, JESSICA Tuition Reimbursement/School Organizational Services
178741 3,139 MIDWEST ASPHALT CORPORATION Patching Asphalt Street Maintenance
178742 1,051 MIDWEST COCA COLA BOTTLING COM Misc Non-Taxable Den Road Liquor Store
178743 15 MINNESOTA COUNTY ATTORNEYS ASS Tuition Reimbursement/School Police17874315MINNESOTA COUNTY ATTORNEYS ASS Tuition Reimbursement/School Police
178744 27,984 MINNESOTA DEPT OF HEALTH Miscellaneous Water Testing
178745 439 MINNESOTA HIGHWAY SAFETY & RES Tuition Reimbursement/School Police
178746 382 MINNESOTA HUMAN SERVICES Other Contracted Services Park Maintenance
Check # Amount Vendor / Explanation Account Description Business Unit
178747 315 MINNESOTA NATIVE LANDSCAPES Other Contracted Services Storm Drainage
178748 769 MINNESOTA ROADWAYS CO Patching Asphalt Street Maintenance
178749 1,914 MINNESOTA STATE FAIR Deposits Escrow
178750 250 MINNESOTA VALLEY ELECTRIC COOP Electric Traffic Signals
178751 495 MN FALL MAINTENANCE EXPO Conference Expense Engineering
178752 176 MN NCPERS GROUP LIFE INSURANCE Life Insurance EE/ER General Fund
178753 73 MTI DISTRIBUTING INC Equipment Parts Fleet Operating
178754 51 NELSON, SHIRLEY Program Fee Red Hat
178755 110 NEW FRANCE WINE COMPANY Transportation Den Road Liquor Store
178756 100 OTTERNESS, RON Instructor Service Outdoor Center
178757 160 PAGING & WIRELESS SERVICE CENT Equipment Repair & Maint Wireless Communication
178758 2,145 PAUSTIS & SONS COMPANY Transportation Prairie View Liquor Store
178759 1,495 PCS TECHNOLOGIES INC Other Hardware Arts Center
178760 48 PEPSI COLA COMPANY Misc Taxable Prairie Village Liquor Store
178761 70 PETERSON, DANIEL J Tuition Reimbursement/School Police
178763 9,803 PHILLIPS WINE AND SPIRITS INC Transportation Prairie View Liquor Store
178764 979 PRAIRIE ELECTRIC COMPANY Other Contracted Services City Ctr - Tenant Direct Costs
178765 352 PRIOR WINE COMPANY Transportation Den Road Liquor Store
178766 4,260 PRISTINE WATER SOLUTIONS Treatment Chemicals Water Treatment Plant
178767 362 PUBLIC EMPLOYEES RETIREMENT AS Pension - PERA Community Center Admin
178768 51 PUTNAM, PAT Program Fee Red Hat
178771 21,185 QUALITY WINE & SPIRITS CO Transportation Prairie View Liquor Store
178772 114 QUICKSILVER EXPRESS COURIER Postage General
178773 181 QWEST Telephone IT Telephone
178774 520 RAY, LEE Other Contracted Services Softball
178775 2,899 READY WATT ELECTRIC Equipment Repair & Maint Emergency Preparedness
178776 235 RIGHTWAY GLASS INC Equipment Repair & Maint Fleet Operating
178777 83 RIGID HITCH INCORPORATED Equipment Parts Fleet Operating
178778 51 SCHOEN, ELIZABETH Program Fee Red Hat
178779 478 SHAMROCK GROUP, INC - ACE ICETransportationPrairie View Liquor Store7877978SOCGOU,NCCC aspotato a e V ew quo Sto e
178780 51 SHIMANSKI, BERMA Program Fee Red Hat
178781 51 SNAP-ON TOOLS Small Tools Fleet Operating
178782 410 SPS COMPANIES Machinery & Equipment Utility Improvement Fund
178783 1,731 STRATEGIC INSIGHTS INC Software IT Operating
178784 1,090 STREICHERS Protective Clothing Police
178785 1,995 STRONER, ELIZABETH Tuition Reimbursement/School Organizational Services
178786 550 SUBURBAN CHEVROLET Equipment Parts Fleet Operating
178787 446 SURLY BREWING CO Beer Prairie Village Liquor Store
178788 543 THE OASIS GROUP Employee Assistance Organizational Services
178789 20,225 THORPE DISTRIBUTING Beer Prairie View Liquor Store
178790 120 TOUGH CUT SERVICES Other Contracted Services Park Maintenance
178791 63 TRUE FABRICATIONS Transportation Den Road Liquor Store
178792 1,170 TWIN CITY AREA LABOR MGMT COUN Conference Expense Engineering
178793 51 UNLIMITED SUPPLIES INC Equipment Parts Fleet Operating
178794 1,533 US POSTMASTER - HOPKINS Postage Water Accounting
178795 1,500 VALMONT STRUCTURES Other Contracted Services CIP - Bonds
178796 116 VANDENBERGHE, MARK Operating Supplies Wireless Communication
178797 129 VERIZON WIRELESS Pager & Cell Phone Information Technology
178798 182 VIKING ELECTRIC SUPPLY Repair & Maint. Supplies Fire
178799 221 VINO SOURCE, THE Transportation Den Road Liquor Store
178800 552 VINOCOPIA Transportation Prairie View Liquor Store
178801 650 VOGEL'S EXOTIC ANIMALS SHOWS Other Contracted Services Sunbonnet Days
178802 12,526 WALL TRENDS INC Contract Svcs - General Bldg Community Center Maintenance
178803 360 WALSER CHRYSLER JEEP Equipment Parts Fleet Operating
178804 1,662 WATER SPECIALTY OF MN INC Chemicals Pool Maintenance
178805 51 WENZEL, ELINOR Program Fee Red Hat
178806 8,206 WHEELER LUMBER LLC Improvements to Land Capital Impr. / Maint. Fund
178807 1,941 WINE COMPANY, THE Transportation Prairie View Liquor Store
178808 3,688 WINE MERCHANTS INC Transportation Prairie View Liquor Store
178809 1,064 WORK CONNECTION, THE Other Contracted Services Park Maintenance
178810 1,408 WORLD CLASS WINES INC Transportation Prairie View Liquor Store
178811 3 206 YALE MECHANICAL INC Building CIP Bonds1788113,206 YALE MECHANICAL INC Building CIP - Bonds
178812 766 ZEE MEDICAL SERVICE Safety Supplies Community Center Admin
178813 608 ZEP MANUFACTURING CO Equipment Parts Fleet Operating
178814 25 APA NORTHSTAR CHAPTER Dues & Subscriptions Finance
Check # Amount Vendor / Explanation Account Description Business Unit
178815 125 COMMISSIONER OF TRANSPORATION Conference Expense Engineering
178816 551 DB AUSTAD & ASSOCIATES INC Deposits Escrow
178817 64 ECOLAB INC Contract Svcs - Pest Control Fire Station #4
178818 5,348 HENNEPIN COUNTY TREASURER Software Maintenance IT Operating
178819 57 HOME DEPOT CREDIT SERVICES Supplies - General Bldg Senior Center
178820 300 ISANTI COUNTY SHERIFF'S DEPT Deposits Escrow
178821 39,749 METROPOLITAN COUNCIL Due to Other Governments SAC Agency Fund
178822 23 MINNESOTA DEPT OF HEALTH Licenses & Taxes Water System Maintenance
178823 295 PETTY CASH-POLICE DEPT Operating Supplies Police
178824 76 RICHARDSON, JIM Conference Expense Engineering
178825 4,243 RICHFIELD, CITY OF Autos Public Works
178826 20 STATE OF MINNESOTA Operating Supplies DWI Forfeiture
178827 376 A MEYER'S ENTERPRISES INC Instructor Service Outdoor Center
178828 8,579 A-SCAPE INC Contract Svcs - Lawn Maint Dunn Brothers
178829 6,946 A-Z RESTAURANT EQUIPMENT COMPA Capital Under $10,000 Garden Room Repairs
178830 290 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events
178831 240 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events
178832 100 ABM EQUIPMENT AND SUPPLY COMPA Equipment Repair & Maint Fleet Operating
178833 982 ACTIVE NETWORK INC, THE Other Hardware Capital Impr. / Maint. Fund
178834 204 AIR POWER EQUIPMENT CORPORATIO Contract Svcs - General Bldg Fire Station #1
178835 20 ALDRITT, JACKIE Deposits Community Center Admin
178836 2,964 ALTERNATIVE BUSINESS FURNITURE Capital Under $10,000 Furniture
178837 523 AMERICAN INSTITUTE-PREVENTIVE Awards Organizational Services
178838 172 AMERIPRIDE LINEN & APPAREL SER Repair & Maint. Supplies Den Road Liquor Store
178839 1,102 AMSAN LLC Supplies - General Bldg Outdoor Center Facilities
178840 225 APA NORTHSTAR CHAPTER Dues & Subscriptions Finance
178841 225 ARMA INTERNATIONAL Dues & Subscriptions City Clerk
178842 47 ASPEN MILLS Clothing & Uniforms Communications
178843 3,829 ASPEN WASTE SYSTEMS INC.Equipment Parts Fleet Operating
178844 90 AT&T MOBILITY Pager & Cell Phone Water System Maintenance78890&O age & Ce o e Wate Syste a te a ce
178845 717 BARR ENGINEERING COMPANY Other Contracted Services Storm Drainage
178846 4,557 BELLBOY CORPORATION Transportation Prairie Village Liquor Store
178847 80 BERRY COFFEE COMPANY Operating Supplies Elections
178850 8,600 BIFFS INC Waste Disposal Park Maintenance
178851 146 BLOOMINGTON SECURITY SOLUTIONS Contract Svcs - Security Park Shelters
178852 304 BOY SCOUT TROOP 695 Other Contracted Services Sunbonnet Days
178853 17 BOYER TRUCKS Equipment Parts Fleet Operating
178854 20 BROOKE-BEYER, KATHRYNE Deposits Community Center Admin
178855 810 BRYAN ROCK PRODUCTS INC Landscape Materials/Supp Park Maintenance
178856 3,320 CEMSTONE PRODUCTS COMPANY Repair & Maint. Supplies Storm Drainage
178858 2,424 CENTERPOINT ENERGY Gas Water Treatment Plant
178859 12 CHRISTENSEN, CASSIE Program Fee Classes/Programs/Events
178860 20 CITROWSKI, BRYAN Deposits Community Center Admin
178861 576 CONCRETE CUTTING & CORING INC Repair & Maint. Supplies Storm Drainage
178862 112 CONSTRUCTION MATERIALS INC Repair & Maint. Supplies Storm Drainage
178863 768 CORPORATE EXPRESS Office Supplies Elections
178864 201 CUB FOODS EDEN PRAIRIE Operating Supplies Police
178865 13,970 DAY DISTRIBUTING Beer Prairie Village Liquor Store
178866 414 DELEGARD TOOL CO Equipment Parts Fleet Operating
178867 11,958 DELL Computers IT Operating
178868 72 DIRECTV Cable TV Community Center Maintenance
178869 24,874 DIVERSE BUILDING MAINTENANCE Janitor Service Park Shelters
178870 532 DNR Awards Softball
178871 2,766 EAGLE WINE COMPANY Transportation Prairie Village Liquor Store
178872 1,034 ECOLAB INC Contract Svcs - Pest Control City Hall - CAM
178873 138 ELIASON, STEVE J Other Contracted Services Softball
178874 40 ELVIN SAFETY LLC Protective Clothing Fire
178875 1,635 ENVIRONMENTAL EQUIPMENT & SERV Equipment Parts Fleet Operating
178876 998 EULL'S MANUFACTURING CO INC Repair & Maint. Supplies Infiltration/Inflow Study
178877 315 EXTREME BEVERAGE Misc Taxable Den Road Liquor Store
178878 203 FORCE AMERICA Equipment Parts Fleet Operating
178879 74 671 FRANK J ZAMBONI & CO INC Machinery & Equipment Capital Impr / Maint Fund17887974,671 FRANK J ZAMBONI & CO INC Machinery & Equipment Capital Impr. / Maint. Fund
178880 72 FREUDENBERG, JESSICA R Other Contracted Services Teen Work Program
178881 311 G & K SERVICES Clothing & Uniforms General Facilities
178882 970 G & K SERVICES-MPLS INDUSTRIAL Janitor Service Utility Operations - General
Check # Amount Vendor / Explanation Account Description Business Unit
178883 60 GAMMON, TERRIE Deposits Community Center Admin
178884 335 GARDEN ROOM FRATELLI'S GARDEN Capital Under $10,000 Garden Room Repairs
178885 974 GENERAL REPAIR SERVICE Equipment Parts Water Treatment Plant
178886 357 GETTMAN COMPANY Misc Taxable Prairie Village Liquor Store
178887 1,099 GIRARD'S BUSINESS SOLUTIONS IN Postage General
178888 5,400 GLEN LAKE GOLF Instructor Service Spring Skill Development
178889 6,259 GRAINGER Supplies - HVAC City Hall - CAM
178890 1,299 GRAPE BEGINNINGS Transportation Prairie Village Liquor Store
178891 15,929 GRAYMONT Treatment Chemicals Water Treatment Plant
178892 215 GREENSIDE INC Contract Svcs - Asphalt/Concr. Fire Station #1
178894 12,297 GRIGGS COOPER & CO Transportation Prairie Village Liquor Store
178895 137 HANINK, KELLY Training Supplies Fire
178896 20 HANISH, ANDREA Deposits Community Center Admin
178897 4,780 HD SUPPLY WATERWORKS LTD Improvement Contracts Utility Improvement Fund
178898 4,164 HIGH ISLAND SEAMLESS INC Other Contracted Services Rehab
178899 928 HIGHWAY TECHNOLOGIES INC Other Rentals Street Maintenance
178900 75 HILT, SUSAN Operating Supplies Tennis
178901 1,078 HIRSHFIELDS PAINT MANUFACTURIN Operating Supplies Park Maintenance
178902 276 HOLMES, TOM Other Contracted Services Softball
178904 650 HORIZON COMMERCIAL POOL SUPPLY Supplies - General Bldg Pool Maintenance
178905 85 HUDSON MAP COMPANY Office Supplies Utility Operations - General
178906 715 HYDROLOGIC WATER MANAGEMENT Repair & Maint. Supplies Park Maintenance
178907 194 IDEAL SYSTEM SOLUTIONS INC Equipment Repair & Maint IT Operating
178908 129 IMAGETECH SERVICES Operating Supplies Park Maintenance
178909 353 INTERSTATE POWER SYSTEMS INC Equipment Parts Fleet Operating
178910 283 ITL PATCH COMPANY INC Operating Supplies Police
178911 664 J H LARSON COMPANY Supplies - Electrical Community Center Maintenance
178912 24,663 JJ TAYLOR DISTRIBUTING MINNESO Transportation Prairie View Liquor Store
178913 581 JOHN HENRY FOSTER MINNESOTA IN Maintenance Contracts Water Treatment Plant
178917 34,255 JOHNSON BROTHERS LIQUOR CO Liquor Prairie View Liquor Store789 7 3,55 JO NSON O S QUO CO quo a e V ew quo Sto e
178918 58 JOHNSON, DARRELL Mileage & Parking Prairie Village Liquor Store
178919 12 JOHNSON, GERALD Program Fee Classes/Programs/Events
178920 331 KIDS TEAM TENNIS LLC Instructor Service Tennis
178921 1,116 KRAEMER MINING & MATERIALS INC Gravel Water System Maintenance
178922 436 LAB SAFETY SUPPLY INC Repair & Maint. Supplies Water System Maintenance
178923 511 LANO EQUIPMENT INC Equipment Parts Fleet Operating
178924 1,310 LAVAN FLOOR COVERING Supplies - General Bldg Community Center Maintenance
178925 125 LEROY JOB TRUCKING INC Other Contracted Services Animal Control
178926 294 LESCO INC Chemicals Park Maintenance
178927 1,350 LOCAL 49 TRAINING CENTER Conference Expense Engineering
178928 16 LOES OIL COMPANY Equipment Parts Fleet Operating
178929 1,032 LOGIS Network Support IT Operating
178930 306 LONESKY, JAMES G Other Contracted Services Softball
178931 400 MAACO Equipment Repair & Maint Fleet Operating
178932 40 MAGC Conference Expense Communications
178933 29,077 MARK VII Beer Prairie View Liquor Store
178934 2,948 MEDICINE LAKE TOURS Program Fee Trips
178935 643 MENARDS Operating Supplies Street Maintenance
178936 195 METRO FIRE Operating Supplies Fire
178937 1,391 METROPOLITAN FORD Equipment Repair & Maint Fleet Operating
178938 6,402 MIDWEST ASPHALT CORPORATION Waste Blacktop/Concrete Street Maintenance
178939 1,124 MIDWEST COCA COLA BOTTLING COM Misc Non-Taxable Prairie View Liquor Store
178940 1,162 MINN CHILD SUPPORT PAYMENT CTR Garnishment Withheld General Fund
178941 78 MINN OFFICE OF ENTERPRISE TECH Other Contracted Services Police
178942 3,188 MINNESOTA ATHLETIC APPAREL Operating Supplies Emergency Preparedness
178943 15 MINNESOTA MUNICIPAL BEVERAGE A Conference Expense Den Road Liquor Store
178944 1,785 MINNESOTA PIPE AND EQUIPMENT* Repair & Maint. Supplies Water System Maintenance
178945 285 MINNESOTA PRINT MANAGEMENT LLC Office Supplies Water Accounting
178946 2,099 MINNESOTA VALLEY ELECTRIC COOP Electric Riley Lake
178947 118 MINNESOTA WANNER COMPANY Equipment Parts Park Maintenance
178948 20 MN PRIMA Conference Expense General
178949 34 599 MOELTER GRAIN INC Lime Residual Removal Water Treatment Plant17894934,599 MOELTER GRAIN INC Lime Residual Removal Water Treatment Plant
178950 130 NEWMECH Contract Svcs - Fire/Life/Sfty City Hall - CAM
178951 75 NGUYEN, TAN Operating Supplies Tennis
178952 320 NORTH STAR WOMEN'S FIREFIGHTER Conference Expense Fire
Check # Amount Vendor / Explanation Account Description Business Unit
178953 288 NORTHERN SAFETY TECHNOLOGY INC Equipment Parts Fleet Operating
178954 349 NORTHERN TOOL Equipment Parts Fleet Operating
178955 470 OLSEN COMPANIES Equipment Parts Fleet Operating
178956 136 PACIFIC DIRECT Transportation Den Road Liquor Store
178957 35,994 PARROTT CONTRACTING INC Equipment Repair & Maint Water System Maintenance
178958 6,667 PAUSTIS & SONS COMPANY Transportation Den Road Liquor Store
178959 1,074 PAUTZ, ROGER Instructor Service Spring Skill Development
178960 19 PC MALL Other Hardware IT Operating
178961 114 PETSMART Canine Supplies Police
178962 683 PETTY CASH Mileage & Parking Water Distribution
178964 17,507 PHILLIPS WINE AND SPIRITS INC Transportation Prairie View Liquor Store
178965 55 PIONEER RIM & WHEEL CO Equipment Parts Fleet Operating
178966 18 PLOSZAY, ANDREA Mileage & Parking Community Center Maintenance
178967 16 POKORNY COMPANY Supplies - Plumbing Community Center Maintenance
178968 49 PRAIRIE LAWN AND GARDEN Operating Supplies Park Maintenance
178969 1,126 PRIOR WINE COMPANY Transportation Prairie View Liquor Store
178970 34 PRIORITY COURIER EXPERTS Equipment Repair & Maint Fleet Operating
178971 5,192 PROFESSIONAL TURF & RENOVATION Other Contracted Services Park Maintenance
178972 34 PROPERTY CLAIM SOLUTIONS Cash Over/Short General Fund
178974 30,969 QUALITY WINE & SPIRITS CO Transportation Prairie View Liquor Store
178975 1,010 QWEST Telephone Water Distribution
178976 67 RAY ALLEN MANUFACTURING CO INC Canine Supplies Police
178977 442 RAY, LEE Other Contracted Services Softball
178978 8,509 RMR SERVICES LLC Repair & Maint. Supplies Water Metering
178979 4,500 ROBERT C VOGEL Deposits Escrow
178980 200 SABLAN, JOHN AR Utility Water Enterprise Fund
178981 40 SANG, CAREY & CHRISTOPHER Deposits Community Center Admin
178982 40 SCHNEIDER, KATHLEEN AND NICHOL Deposits Community Center Admin
178983 87 SCHNICKEL, JENNY Mileage & Parking Police
178984 90 SCHUG, DIANAProgram Fee Classes/Programs/Events789890SC UG, N og a ee C asses/ og a s/ ve ts
178985 40 SCHULZ, CRAIG Deposits Community Center Admin
178986 20 SHAH, JENY Deposits Community Center Admin
178987 480 SHAMROCK GROUP, INC - ACE ICE Transportation Prairie View Liquor Store
178988 797 SIEMENS BUILDING TECHNOLOGIES Contract Svcs - Fire/Life/Safe Community Center Maintenance
178989 72 SINELL, STEVE Conference Expense Assessing
178990 542,201 SM HENTGES & SONS INC Improvement Contracts Improvement Projects 2006
178991 12,713 SOFTWARE HOUSE INTERNATIONAL I Software IT Operating
178992 312 SOUTH METRO PUBLIC SAFETY TRAI Conference Expense DWI Forfeiture
178993 581 SPS COMPANIES Supplies - Plumbing 3rd Sheet of Ice
178994 22,622 ST CROIX ENVIRONMENTAL INC Design & Engineering Utility Improvement Fund
178995 215 STANLEY ACCESS TECH LLC Building Repair & Maint. Den Road Liquor Store
178996 31 STREICHERS Clothing & Uniforms Police
178997 187 SUBURBAN TIRE WHOLESALE INC Equipment Parts Fleet Operating
178998 96,812 SUNRAM CONSTRUCTION Improvements to Land Capital Impr/Maint Fixed
178999 430 SURLY BREWING CO Beer Den Road Liquor Store
179000 20,265 THORPE DISTRIBUTING Misc Taxable Prairie View Liquor Store
179001 146 TOM'S WINDOW CLEANING Janitor Service - General Bldg Prairie Village Liquor Store
179002 252 TRI COUNTY BEVERAGE & SUPPLY Beer Prairie View Liquor Store
179003 1,307 TWIN CITY SEED CO Landscape Materials/Supp Park Maintenance
179004 1,050 U S BANK Paying Agent HRA 2002A LEASE REVENUE BONDS
179005 14 UNIFORMS UNLIMITED Clothing & Uniforms Animal Control
179006 10 UNLIMITED SUPPLIES INC Operating Supplies Street Maintenance
179007 52 UPS Postage Water System Maintenance
179008 1,341 USA MOBILITY WIRELESS INC Pager & Cell Phone Wireless Communication
179009 43 VALLEY NAT'L GASES-LOC 93 Repair & Maint. Supplies Utility Operations - General
179010 665 VALLEY RICH CO INC Equipment Repair & Maint Water System Maintenance
179011 1,807 VAN PAPER COMPANY Cleaning Supplies City Hall - CAM
179012 186 VINO SOURCE, THE Transportation Den Road Liquor Store
179013 221 VOGEL'S EXOTIC ANIMALS SHOWS Other Contracted Services Sunbonnet Days
179014 139 WADNAL, ERIC E Other Contracted Services Teen Work Program
179015 330 WALSER CHRYSLER JEEP Auto Repair & Maint. Utility Operations - General
179016 53 WANCHENA TAMMY Mileage & Parking Prairie Village Liquor Store17901653WANCHENA, TAMMY Mileage & Parking Prairie Village Liquor Store
179017 12 WHAYLEN, NANCY Program Fee Classes/Programs/Events
179018 353 WINE COMPANY, THE Transportation Prairie View Liquor Store
179019 6,671 WINE MERCHANTS INC Transportation Prairie View Liquor Store
Check # Amount Vendor / Explanation Account Description Business Unit
179020 853 WM MUELLER AND SONS INC Landscape Materials/Supp Park Maintenance
179021 1,373 WORK CONNECTION, THE Other Contracted Services Park Maintenance
179022 1,264 WORLD CLASS WINES INC Wine Domestic Den Road Liquor Store
179025 254,008 XCEL ENERGY Electric City Hall - CAM
179026 3,632 YALE MECHANICAL INC Contract Svcs - HVAC Fire Station #3
179027 77 ABRAIRA, DANIEL CARLOS Wages No Benefits Elections
179028 200 AFFOLTER, DONALD Wages No Benefits Elections
179029 230 ALBERTS, DALE A Wages No Benefits Elections
179030 95 ALDRIDGE, DAWN Wages No Benefits Elections
179031 265 AMUNDSON, LONDA Wages No Benefits Elections
179032 95 ANDERSON, BETTY J Wages No Benefits Elections
179033 164 ANDERSON, JANELLE Wages No Benefits Elections
179034 95 ANDERSON, KENNETH Wages No Benefits Elections
179035 86 AULIZIA, NANCY Wages No Benefits Elections
179036 95 AUTIO, NANCY J Wages No Benefits Elections
179037 259 BAKER, LISA SMITH Wages No Benefits Elections
179038 81 BALLANTINE, JESSICA Wages No Benefits Elections
179039 90 BAZILLION, BRENDA Wages No Benefits Elections
179040 254 BEAUVAIS, BERNADINE Wages No Benefits Elections
179041 92 BECKMANN, GERALDINE Wages No Benefits Elections
179042 90 BENGSTON, LISA Wages No Benefits Elections
179043 86 BERNTSEN, FLOYD Wages No Benefits Elections
179044 86 BLACKARD, LOUISE Wages No Benefits Elections
179045 86 BLY, PHILIP M Wages No Benefits Elections
179046 254 BOLLWEG, NANCY Wages No Benefits Elections
179047 155 BOYINGTON, SHIRLEY Wages No Benefits Elections
179048 81 BOZANICH, STACEY Wages No Benefits Elections
179049 90 BRENNER, KATHRYN Wages No Benefits Elections
179050 81 BRINK, LAUREY Wages No Benefits Elections
179051 79 BROICH, JESSICA Wages No Benefits Elections790579OC ,J SSC Wages No e e ts ect o s
179052 86 BRUENING, CHARLOTTE Wages No Benefits Elections
179053 155 BRUNNER, BRUCE Wages No Benefits Elections
179054 95 BRYNDAL, MARY ANNE Wages No Benefits Elections
179055 95 BUEHL, BARBARA Wages No Benefits Elections
179056 90 CANTIN, RODNEY Wages No Benefits Elections
179057 95 CARLSON, JOHN R Wages No Benefits Elections
179058 95 CHEVALIER, JEANNE Wages No Benefits Elections
179059 81 CHRISTENSEN, CASSIE Wages No Benefits Elections
179060 88 CHRISTENSEN, RICHARD Wages No Benefits Elections
179061 155 CLARK, FAY Wages No Benefits Elections
179062 135 CLARK, JAMES G Wages No Benefits Elections
179063 86 CLINTON, BARBARA Wages No Benefits Elections
179064 92 COHEN, NANCY Wages No Benefits Elections
179065 23 CONBOY, NANCY Wages No Benefits Elections
179066 81 CONNAUGHTY, CURTIS Wages No Benefits Elections
179067 86 CONNORS, MARGE Wages No Benefits Elections
179068 235 CONNORS, PETE Wages No Benefits Elections
179069 81 COURT, ARNOLD Wages No Benefits Elections
179070 59 CRAGG, JAMES Wages No Benefits Elections
179071 56 CROSBY, JOYCE Wages No Benefits Elections
179072 90 CRUMP, ELLEN Wages No Benefits Elections
179073 63 CURIELLI, JANICE Wages No Benefits Elections
179074 95 DAHL., ELAINE Wages No Benefits Elections
179075 95 DAHLAGER, KENNETH Wages No Benefits Elections
179076 90 DAKAY, JAYNE Wages No Benefits Elections
179077 77 DESMARAIS, MELINDA Wages No Benefits Elections
179078 153 DOYLE, HELEN Wages No Benefits Elections
179079 81 DUFFY, JOHN Wages No Benefits Elections
179080 81 DUVICK, LOIS Wages No Benefits Elections
179081 81 DYLLA, DANIEL Wages No Benefits Elections
179082 158 EASTMAN, ROCHELLE Wages No Benefits Elections
179083 95 ECKHARDT GARY Wages No Benefits Elections17908395ECKHARDT, GARY Wages No Benefits Elections
179084 95 EGAN, ROSE ANN Wages No Benefits Elections
179085 254 EGGEBRECHT, WANDA Wages No Benefits Elections
179086 95 EHON, MARCIA Wages No Benefits Elections
Check # Amount Vendor / Explanation Account Description Business Unit
179087 235 EIDE, JANE Wages No Benefits Elections
179088 94 ELLISON, CAROL E Wages No Benefits Elections
179089 83 ENGELSTAD, CALVIN Wages No Benefits Elections
179090 95 FLAVIN. MARILYN Wages No Benefits Elections
179091 81 FOX, VERNETTE Wages No Benefits Elections
179092 83 FREDRICKSON, CAROL Wages No Benefits Elections
179093 95 FREEMAN, BARBARA Wages No Benefits Elections
179094 83 FRITZ, DONNAMAE Wages No Benefits Elections
179095 95 FROLANDER, LEANNE Wages No Benefits Elections
179096 63 GANAPATHIRAJU, SADHANA Wages No Benefits Elections
179097 95 GATES, SHARON Wages No Benefits Elections
179098 95 GIBSON, STEVE Wages No Benefits Elections
179099 95 GIVENS, JACQUELINE Wages No Benefits Elections
179100 153 GJERSVIK, CAROL Wages No Benefits Elections
179101 155 GOKE, JANE Wages No Benefits Elections
179102 81 GOLDMAN, KRISTINE Wages No Benefits Elections
179103 81 GORMAN, ROBERTA Wages No Benefits Elections
179104 95 GRAMMENS, SUZANNE Wages No Benefits Elections
179105 95 GRIER, RALPH Wages No Benefits Elections
179106 81 GRUSSING, ARLYN Wages No Benefits Elections
179107 235 HANSEN, KERMIT P Wages No Benefits Elections
179108 86 HANSEN, MATTHEW D Wages No Benefits Elections
179109 235 HAWKINS, GLENDA Wages No Benefits Elections
179110 90 HECK, JOANNE Wages No Benefits Elections
179111 153 HEDBERG, SUSAN Wages No Benefits Elections
179112 240 HIGGINS, ANN Wages No Benefits Elections
179113 95 HIGGINS, ROBERT Wages No Benefits Elections
179114 245 HILK, ROSEMARIE Wages No Benefits Elections
179115 245 HOLLINGSWORTH, KAREN Wages No Benefits Elections
179116 158 HOLT, MARY Wages No Benefits Elections79 6 58 O,Wages No e e ts ect o s
179117 95 HOWE, DENISE Wages No Benefits Elections
179118 153 INDRE, PATTI Wages No Benefits Elections
179119 90 ISBELL, DOUGLAS Wages No Benefits Elections
179120 86 JOHNSON, TRACY L Wages No Benefits Elections
179121 95 JUSTUS, GORDON Wages No Benefits Elections
179122 79 KAMPHOFF, JILL Wages No Benefits Elections
179123 92 KEIBLER, TRACY Wages No Benefits Elections
179124 158 KEIVES, CYNTHIA Wages No Benefits Elections
179125 86 KENNEALY, COLLEEN Wages No Benefits Elections
179126 90 KINGHORN, KATHY Wages No Benefits Elections
179127 86 KLEVEN, ALVIN Wages No Benefits Elections
179128 79 KLOTH, DOREEN Wages No Benefits Elections
179129 95 KOERING, LAURIE Wages No Benefits Elections
179130 155 KRATZ, JANET Wages No Benefits Elections
179131 77 KRAUSE, DOLORES Wages No Benefits Elections
179132 214 KUBIN, MARIANNE Wages No Benefits Elections
179133 79 KUMPULA, RALPH Wages No Benefits Elections
179134 248 LAURENCE, JUDI Wages No Benefits Elections
179135 153 LAWLESS, RUTH Wages No Benefits Elections
179136 95 LEE, DEBBIE Wages No Benefits Elections
179137 95 LEGLER, HERBERT Wages No Benefits Elections
179138 90 LEGLER, MARILYN Wages No Benefits Elections
179139 254 LINAK, JAMES Wages No Benefits Elections
179140 153 LITTLE, NANCY Wages No Benefits Elections
179141 95 LOOMIS, MAJORIE Wages No Benefits Elections
179142 235 MACDONALD, ELAINE Wages No Benefits Elections
179143 83 MALLO, JOHN E Wages No Benefits Elections
179144 83 MARTINSON, LYDIA Wages No Benefits Elections
179145 95 MATHEWS, ELIZABETH Wages No Benefits Elections
179146 90 MAYDOLE, RUTH Wages No Benefits Elections
179147 83 MCCARTHY, BARBARA Wages No Benefits Elections
179148 95 MCDONALD LESLIE Wages No Benefits Elections17914895MCDONALD, LESLIE Wages No Benefits Elections
179149 180 MCKLOSKEY, JUDY Wages No Benefits Elections
179150 95 MERRIMAN, FRANCIS Wages No Benefits Elections
179151 90 MERTZ, CYNTHIA Wages No Benefits Elections
Check # Amount Vendor / Explanation Account Description Business Unit
179152 86 MIDDENDORF, LINDA Wages No Benefits Elections
179153 270 MILLBERG, CHUCK Wages No Benefits Elections
179154 81 MILLER, THERESE Wages No Benefits Elections
179155 95 MINTER, DONNA LEE Wages No Benefits Elections
179156 81 MONSON, CLARENCE Wages No Benefits Elections
179157 90 MORRISON, MARGARET Wages No Benefits Elections
179158 79 MOSER, ANTHONY Wages No Benefits Elections
179159 92 MOSER, BERNADINE Wages No Benefits Elections
179160 95 MURRAY, MARY SUE Wages No Benefits Elections
179161 77 MUSEGADES, PEG Wages No Benefits Elections
179162 95 MYERS, JEAN Wages No Benefits Elections
179163 142 MYHRE, JOYCE Wages No Benefits Elections
179164 153 NELSON, DONALD A Wages No Benefits Elections
179165 79 NELSON, KRIS Wages No Benefits Elections
179166 235 NIERMAN, MARY Wages No Benefits Elections
179167 254 NIERMAN, PAUL A Wages No Benefits Elections
179168 259 NOMURA, KATHERINE L.Wages No Benefits Elections
179169 77 NONDORF, RICHARD A Wages No Benefits Elections
179170 234 NORMAN, KAREN Wages No Benefits Elections
179171 95 NUNES, GEORGETT Wages No Benefits Elections
179172 86 OLSON, ALAN K Wages No Benefits Elections
179173 77 OSTENSON, JACKIE Wages No Benefits Elections
179174 77 OTIS, RUTH Wages No Benefits Elections
179175 90 PARTEK, WILLIAM Wages No Benefits Elections
179176 95 PELTON, DEAN Wages No Benefits Elections
179177 265 PETERS, JOHN T Wages No Benefits Elections
179178 86 PETERSON, GERALDINE J Wages No Benefits Elections
179179 95 PHILIPS, LAURA Wages No Benefits Elections
179180 95 POLING, CHERYL Wages No Benefits Elections
179181158PRALLE, KAY Wages No Benefits Elections79 8 58 ,Wages No e e ts ect o s
179182 95 PROVO, JACK Wages No Benefits Elections
179183 86 RAITCH, NORMA Wages No Benefits Elections
179184 248 RANNOW, JIM Wages No Benefits Elections
179185 240 RISCHMILLER, DAWN Wages No Benefits Elections
179186 95 ROSCHEN, JOHN Wages No Benefits Elections
179187 155 SCHENDEL, KAREN Wages No Benefits Elections
179188 90 SCHRAEDER, CHERYL Wages No Benefits Elections
179189 235 SCHROEDER, NORA Wages No Benefits Elections
179190 95 SCHRUPP, AGNES Wages No Benefits Elections
179191 90 SCHULTZ, HERBERT Wages No Benefits Elections
179192 254 SHOLD, DAVID P Wages No Benefits Elections
179193 158 SHOLD, GLENNA Wages No Benefits Elections
179194 95 STANLEY, KALYN Wages No Benefits Elections
179195 235 STARR, BRAD R Wages No Benefits Elections
179196 153 STEIN, THOMAS Wages No Benefits Elections
179197 95 STENSWICK, V BRUCE Wages No Benefits Elections
179198 149 STEWART, DOUGLAS Wages No Benefits Elections
179199 90 STONE, TONG Wages No Benefits Elections
179200 158 SUNDELL, PAUL Wages No Benefits Elections
179201 90 SUTHERLAND, MORGAN Wages No Benefits Elections
179202 81 SUTHERLAND, TAMMY Wages No Benefits Elections
179203 90 SWEARENGIN, BOB Wages No Benefits Elections
179204 95 SWITZER, MARILYN Wages No Benefits Elections
179205 95 TAGGATZ, ELEANOR M Wages No Benefits Elections
179206 90 TAYLOR, KERRY Wages No Benefits Elections
179207 95 THOMPSON, NANCY J Wages No Benefits Elections
179208 95 TORNOE, JACQUELINE Wages No Benefits Elections
179209 86 TOSKEY, JULIE Wages No Benefits Elections
179211 86 TRUC, JUDITH Wages No Benefits Elections
179212 95 USHER, RANDI Wages No Benefits Elections
179213 83 VAN REMORTEL, JO M Wages No Benefits Elections
179214 155 VAVRECK JUNE Wages No Benefits Elections179214155VAVRECK, JUNE Wages No Benefits Elections
179215 259 VICKMAN, KAREN Wages No Benefits Elections
179216 83 VINSON, CHERYL Wages No Benefits Elections
179217 86 VIRNIG, NANCY Wages No Benefits Elections
Check # Amount Vendor / Explanation Account Description Business Unit
179218 86 VOGEL, MARY Wages No Benefits Elections
179219 77 WACH, CAROL Wages No Benefits Elections
179220 92 WALLACE, LINDA Wages No Benefits Elections
179221 185 WEAVER, LAUREN Wages No Benefits Elections
179222 86 WEBBER, CONNIE LEE Wages No Benefits Elections
179223 79 WEILER, MAURICE Wages No Benefits Elections
179224 158 WILLIAMSON, MARGARET Wages No Benefits Elections
179225 86 WILLIAMSON, MAUREEN Wages No Benefits Elections
179226 95 WILSON, JAMES Wages No Benefits Elections
179227 235 WINSLOW, JACK Wages No Benefits Elections
179228 135 WITTENBERG, MARIE Wages No Benefits Elections
179229 90 WORCESTER, LEA Wages No Benefits Elections
179230 158 WUTTKE, NORMA Wages No Benefits Elections
179231 153 WYCKOFF-HARCUS, MARY Wages No Benefits Elections
179232 81 ZIEMER, BARBARA Wages No Benefits Elections
179233 240 ZIMMERLEY, KATHIE Wages No Benefits Elections
179234 5,564 ARSENAULT ASSOCIATES Other Hardware IT Operating
179235 249 BOYER TRUCKS Equipment Parts Fleet Operating
179236 10 BOYINGTON, SHIRLEY Program Fee Classes/Programs/Events
179237 10 BRUENING, CHARLOTTE Program Fee Classes/Programs/Events
179238 113 CDW GOVERNMENT INC.Operating Supplies IT Operating
179239 10 CHRISTENSEN, MARGE Program Fee Classes/Programs/Events
179240 78 CUSTOM WATER WORKS Training Supplies Organizational Services
179241 257 DELL Other Hardware IT Operating
179242 7,458 EGAN OIL COMPANY Lubricants & Additives Fleet Operating
179243 206 ELLIS, LYNN AR Utility Water Enterprise Fund
179244 383 FSH COMMUNICATIONS LLC Telephone Miller Park
179245 117 GE CAPITAL Computers IT Operating
179246 12 GRAVES, MARIAN Program Fee Trips
179247 192KRUEGER, MARK Operating Supplies Reserves79 7 9 UG ,Ope at g Supp es ese ves
179248 31,400 LOGIS Network Support IT Operating
179249 18 MANGEN, DEBRA Conference Expense City Clerk
179250 2,069 NORTHERN SAFETY TECHNOLOGY INC Capital Under $10,000 Fleet Operating
179251 614 NORTHERN TOOL Equipment Parts Fleet Operating
179252 3,000 POSTAGE BY PHONE RESERVE ACCOU Postage General
179253 10 PRISM Conference Expense Housing and Community Service
179254 220 RIGHTWAY GLASS INC Equipment Repair & Maint Fleet Operating
179255 121 VOLUNTEER FIREFIGHTERS BENEFIT Dues & Subscriptions Fire
179256 105 WINDSONG MGMT AR Utility Water Enterprise Fund
179257 500 WINGERT, MIKE OR JULIE Refunds Environmental Education
179258 420 A MEYER'S ENTERPRISES INC Instructor Service Outdoor Center
179259 4 A TO Z RENTAL CENTER Operating Supplies Park Maintenance
179260 11,389 A-SCAPE INC Contract Svcs - Lawn Maint. Fire Station #2
179261 110 AARP 55 ALIVE MATURE DRIVING Other Contracted Services Classes/Programs/Events
179262 21,525 ABM JANITORIALSERVICES-NORTH C Janitor Service City Hall - CAM
179263 413 ALEX AIR APPARATUS INC Clothing & Uniforms Police
179264 305 AMERICAN PRESSURE INC Equipment Repair & Maint Fleet Operating
179265 148 AMERIPRIDE LINEN & APPAREL SER Charges for Service Prairie Village Liquor Store
179266 3,150 ANCHOR PRINTING COMPANY Printing Sunbonnet Days
179267 18 ANGELL-AIRE Cash Over/Short General Fund
179268 189 ARMOR SECURITY INC.Other Contracted Services Outdoor Center
179269 107 ARNDT, JEFF Conference Expense Engineering
179270 14 ASUQUO, CHRISTINE Sales Tax Payable General Fund
179271 129 AVI SYSTEMS INC Equipment Repair & Maint IT Operating
179272 20 AXELSON, NANCY Tuition Reimbursement/School Fitness Classes
179273 90 BARBARI, LISA Lessons & Classes Ice Arena
179274 1,060 BATES, DON Other Contracted Services Community Band
179275 116 BATTLE LAKE SENIOR CARD PROJEC Supply-Greeting Cards Senior Board
179276 67 BECKER ARENA PRODUCTS INC Supplies - General Bldg 3rd Sheet of Ice
179278 4,786 BELLBOY CORPORATION Transportation Prairie View Liquor Store
179279 140 BERKBIGLER, RIK Training Supplies Fire
179280 307 BERTELSON TOTAL OFFICE SOLUTIO Office Supplies Utility Operations General179280307BERTELSON TOTAL OFFICE SOLUTIO Office Supplies Utility Operations - General
179281 148 BIGGAR, JERRAD Miscellaneous CIP - Bonds
179282 22 BILSE, MEREDITH Mileage & Parking Aquatics & Fitness Admin
179283 46,535 BLACKSTONE CONTRACTORS LLC Improvements to Land Park Acquisition & Dev Fixed A
Check # Amount Vendor / Explanation Account Description Business Unit
179284 140 BLOOMINGTON SECURITY SOLUTIONS Contract Svcs - Security City Center Operations
179285 26 BOCHET, ZENAH Sales Tax Payable General Fund
179286 233 BOUNDLESS NETWORK Operating Supplies Gymnasium (CC)
179287 413 BOYER TRUCKS Equipment Parts Fleet Operating
179288 12,598 BRAUER & ASSOCIATES LTD Other Assets Capital Impr/Maint Fixed
179289 217 BRYAN ROCK PRODUCTS INC Landscape Materials/Supp Park Maintenance
179290 597 CAREER TRACK Conference Expense Recreation Administration
179291 1,509 CAT & FIDDLE BEVERAGE Wine Domestic Prairie View Liquor Store
179292 462 CDW GOVERNMENT INC.Other Hardware Capital Impr. / Maint. Fund
179293 1,743 CEMSTONE PRODUCTS COMPANY Improvement Contracts CIP Trails
179294 17,967 CENTERPOINT ENERGY SERVICES IN Gas Water Treatment Plant
179295 93 CITI-CARGO & STORAGE CO, INC Other Contracted Services Staring Lake Concert
179296 1,624 CLAREYS INC Safety Supplies Fleet Operating
179297 13 COMCAST Operating Supplies Fire
179298 3,102 COMMVAULT SYSTEMS, INC.Software Maintenance IT Operating
179299 219 CORPORATE EXPRESS Office Supplies Elections
179300 970 COSTCO Operating Supplies Fire
179301 80 COULOMBE, JEANNINE Other Contracted Services Arts Initiative
179302 42 CULLIGAN BOTTLED WATER Operating Supplies Fire
179303 665 DALE GREEN COMPANY, THE Asphalt Overlay Street Maintenance
179304 10,493 DAY DISTRIBUTING Misc Non-Taxable Prairie View Liquor Store
179305 119 DECORATIVE DESIGNS INC Contract Svcs - General Bldg Garden Room Repairs
179306 23,117 DIVERSE BUILDING MAINTENANCE Cleaning Supplies Park Shelters
179307 48 DMX MUSIC Other Contracted Services Prairie Village Liquor Store
179308 2,457 EAGLE WINE COMPANY Transportation Prairie View Liquor Store
179309 627 EARL F ANDERSEN INC Other Contracted Services Storm Drainage
179310 1,799 ECMD Capital Under $10,000 Capital Impr. / Maint. Fund
179311 321 ECOLAB INC Contract Svcs - Pest Control Community Center Maintenance
179312 112 EDEN PRAIRIE NEWS Dues & Subscriptions Fire
179313 161ELIASON, STEVE J Other Contracted Services Softball793 3 6 SON, S V J Ot e Co t acted Se v ces So tba
179314 560 ELLINGSON DRAINAGE Deposits Escrow
179315 2,354 ENTERPRISE RENT-A-CAR Equipment Repair & Maint Fleet Operating
179316 33 ERISSON, JEANNE Lessons & Classes Fitness Classes
179317 233 ESCH CONSTRUCTION SUPPLY INC Small Tools Park Maintenance
179318 1,708 ESS BROTHERS & SONS INC Equipment Repair & Maint Sewer System Maintenance
179319 230 FALCK, TIMOTHY R Other Contracted Services Softball
179320 95 FASTSIGNS Signs Park Maintenance
179321 44 FERRELLGAS Motor Fuels Fleet Operating
179322 137 FISCHER, TOM Training Supplies Fire
179323 623 FLYING CLOUD T/S #U70 Waste Disposal Park Maintenance
179324 241 FRANZEN, MICHAEL D Mileage & Parking Planning
179325 120 G & K SERVICES Clothing & Uniforms Park Maintenance
179326 3,303 GE CAPITAL Other Rentals General
179327 389 GENERAL GROWTH PROPERTIES LP-E Building Rental Rehab
179328 2,107 GENUINE PARTS COMPANY Office Supplies Fire
179329 249 GOOD, JAMIE Miscellaneous CIP - Bonds
179330 8,310 GOODPOINTE TECHNOLOGY CORPORAT Other Contracted Services Park Maintenance
179331 1,113 GOPHER STATE ONE-CALL INC OCS-Leak Detection Utility Operations - General
179332 382 GOT SWAT GEAR.COM INC Clothing & Uniforms Police
179333 540 GOVDELIVERY Software Maintenance IT Operating
179334 887 GRAINGER Operating Supplies Fire
179335 830 GRANICUS INC Software Maintenance IT Operating
179336 681 GRAPE BEGINNINGS Transportation Den Road Liquor Store
179337 10,650 GRAYMONT Treatment Chemicals Water Treatment Plant
179338 50,580 GREGERSON ROSOW JOHNSON & NILA Legal Legal Criminal Prosecution
179341 12,067 GRIGGS COOPER & CO Transportation Prairie View Liquor Store
179342 162 GULDEN-BOBBITT, RYAN Mileage & Parking Police
179343 101 HABERLE, ROBERT Tuition Reimbursement/School Police
179344 230 HAMBELTON, KIRSTEN M Other Contracted Services Arts Initiative
179345 950 HARLEY CONSULTING & COACHING Other Contracted Services Organizational Services
179346 28,715 HARTLAND FUEL PRODUCTS LLC Motor Fuels Fleet Operating
179347 6 784 HAWKINS INC Treatment Chemicals Water Treatment Plant1793476,784 HAWKINS INC Treatment Chemicals Water Treatment Plant
179348 1,095 HD SUPPLY WATERWORKS LTD Equipment Repair & Maint Sewer System Maintenance
179349 223,329 HEALTHPARTNERS Medical/Dental Premiums Health and Benefits
179350 698 HENNEPIN COUNTY I/T DEPT Software Maintenance IT Operating
Check # Amount Vendor / Explanation Account Description Business Unit
179351 2,226 HENNEPIN COUNTY SHERIFF'S OFFI Board of Prisoner Police
179352 740 HENNEPIN TECHNICAL COLLEGE Tuition Reimbursement/School Police
179353 16,040 HIGHWAY TECHNOLOGIES INC Contracted Striping Street Maintenance
179354 47 HOCHREIN, PAMELA Program Fee Water Games
179355 2,542 HOHENSTEINS INC Beer Prairie View Liquor Store
179356 345 HOLMQUIST, DAN Parking Permits Community Center Admin
179357 1,414 HOME DEPOT CREDIT SERVICES Supplies - General Bldg City Hall - CAM
179358 264 HORIZON COMMERCIAL POOL SUPPLY Chemicals Pool Maintenance
179359 85 IAFCI MINNESOTA Tuition Reimbursement/School Police
179360 87 INT'L FIRE PROTECTION Cash Over/Short General Fund
179361 203 JANEX INC Cleaning Supplies Senior Center
179362 16,258 JJ TAYLOR DISTRIBUTING MINNESO Transportation Prairie View Liquor Store
179366 37,301 JOHNSON BROTHERS LIQUOR CO Transportation Prairie View Liquor Store
179367 310 KEEPERS Clothing & Uniforms Animal Control
179368 592 KEVITT EXCAVATING INC Deposits Escrow
179369 494 KONA GRILL Deposits Escrow
179370 41 KRAEMERS HARDWARE INC Operating Supplies Park Maintenance
179371 349 KRISS PREMIUM PRODUCTS INC Repair & Maint. Supplies City Hall - CAM
179372 172 LAB SAFETY SUPPLY INC Repair & Maint. Supplies Sewer System Maintenance
179373 774 LAKE COUNTRY DOOR LLC Contract Svcs - General Bldg Public Works/Parks
179374 148 LOWERY, THOMAS Miscellaneous CIP - Bonds
179375 352 M. AMUNDSON LLP Transportation Prairie View Liquor Store
179376 3,427 MADISON NATIONAL LIFE Disability Ins Employers Health and Benefits
179377 137 MARCHAND, ANNE Training Supplies Fire
179378 14,630 MARK VII Beer Prairie View Liquor Store
179379 1,600 MARTIN-MCALLISTER Employment Support Test Organizational Services
179380 75 McKAY, LYNI BURKE Dues & Subscriptions Fire
179381 190 MCPA Tuition Reimbursement/School Police
179383 1,332 MENARDS Operating Supplies Police
179384 60 METRO FIRE Equipment Repair & Maint Fire793860Oqu p e t epa & a t e
179385 5,233 METRO SALES INCORPORATED*Other Rentals General
179386 339 METROPOLITAN FORD Equipment Parts Fleet Operating
179387 2,969 MIDWEST ASPHALT CORPORATION Patching Asphalt Street Maintenance
179388 6,000 MIDWEST DESIGN CO Other Contracted Services Communications
179389 855 MINNESOTA ATHLETIC APPAREL Clothing & Uniforms Fire
179390 133 MINNESOTA CONWAY Repair & Maint. Supplies Fire
179391 240 MINNESOTA DEPT OF LABOR AND IN Contract Svcs - HVAC Community Center Maintenance
179392 635 MINNESOTA PRINT MANAGEMENT LLC Office Supplies General
179393 9 MINNESOTA VALLEY ELECTRIC COOP Electric Riley Creek Woods
179394 214 MINNESOTA WANNER COMPANY Equipment Repair & Maint Park Maintenance
179395 4,647 MOBILE RADIO ENGINEERING INC Small Tools Wireless Communication
179396 148 MORROW, JAMES Miscellaneous CIP - Bonds
179397 314 MT GLOBAL LLC Transportation Den Road Liquor Store
179398 235 MTI DISTRIBUTING INC Equipment Parts Fleet Operating
179399 53 MURRAY, CHERYL Sales Tax Payable General Fund
179400 2,868 NATIONAL MARTIAL ARTS ASSOCIAT Instructor Service Summer Skill Development
179401 1,575 NCT INC Conference Expense IT Operating
179402 539 NELSON, KATHY Dues & Subscriptions City Council
179403 1,110 NEW FRANCE WINE COMPANY Transportation Den Road Liquor Store
179404 10,116 NEWMECH Contract Svcs - Ice Rink 3rd Sheet of Ice
179405 177 NUCO2 INC Chemicals Pool Maintenance
179406 461 OLSEN FIRE PROTECTION Contract Svcs - Fire/Life/Sfty City Hall - CAM
179407 118 OSI BATTERIES INC Operating Supplies Traffic Signs
179408 285 OUTDOOR ENVIRONMENTS INC Other Contracted Services Park Maintenance
179409 17,150 PARADIGM SYSTEM SOLUTIONS, INC Computers Utility Operations - General
179410 2,515 PARK NICOLLET CLINIC Health & Fitness Fire
179412 9,308 PAUSTIS & SONS COMPANY Transportation Prairie View Liquor Store
179413 107 PEARSON, MARK Conference Expense Engineering
179414 80 PETERSON, THOMAS L Other Contracted Services Arts Initiative
179417 8,210 PHILLIPS WINE AND SPIRITS INC Transportation Prairie View Liquor Store
179418 107 PINT, BRIAN Conference Expense Engineering
179419 315 PLANET SPIRIT Instructor Service Camps179419315PLANET SPIRIT Instructor Service Camps
179420 781 POWERPLAN OIB Equipment Parts Fleet Operating
179421 1,818 PRAIRIE ELECTRIC COMPANY Contract Svcs - Electrical Community Center Maintenance
179422 9,117 PRAIRIE PARTNERS SIX LLP Building Rental Prairie Village Liquor Store
Check # Amount Vendor / Explanation Account Description Business Unit
179423 54 PRINTERS SERVICE INC Contract Svcs - Ice Rink Ice Arena Maintenance
179424 568 PRIOR WINE COMPANY Transportation Prairie View Liquor Store
179425 121 PRIORITY COURIER EXPERTS Equipment Parts Fleet Operating
179426 324 QUALITY PROPANE Motor Fuels 3rd Sheet of Ice
179428 13,103 QUALITY WINE & SPIRITS CO Transportation Prairie View Liquor Store
179429 54 QWEST Telephone Sewer Liftstation
179430 188 R.P. MANAGEMENT AR Utility Water Enterprise Fund
179431 123 RASMUSSEN, NANCY Sales Tax Payable General Fund
179432 48 RECREATION SUPPLY CO Supplies - General Bldg Pool Maintenance
179433 1,478 RICHFIELD, CITY OF Autos Utility Operations - General
179434 1,367 RIPPE PRINT COMMUNICATIONS Miscellaneous Reserve
179435 1,085 ROBICHONS THE IN-LINE SKATE SC Instructor Service Camps
179436 137 RUSSELL, KATIE Training Supplies Fire
179437 306 SALUD AMERICA INC Transportation Prairie Village Liquor Store
179438 67 SCHUG, DIANA Program Fee Trips
179439 150 SCRAP METAL PROCESSORS INC Equipment Repair & Maint Fleet Operating
179440 361 SHAMROCK GROUP, INC - ACE ICE Transportation Prairie View Liquor Store
179441 47,000 SIGNCRAFTERS Equipment Repair & Maint Water Storage
179442 23 SIMENSON, GLADYS Wages No Benefits Elections
179443 474 SINELL, STEVE Travel Expense Assessing
179444 80 SMITH, SHELLEY Other Contracted Services Arts Initiative
179445 26 SNAP-ON TOOLS Small Tools Fleet Operating
179446 2,771 SOUTHWEST SUBURBAN PUBLISHING- Employment Advertising Organizational Services
179447 1,540 SPORTS UNLIMITED Instructor Service Camps
179448 28 SPS COMPANIES Repair & Maint. Supplies General Facilities
179449 342 STANLEY SECURITY SOLUTIONS INC Supplies - Security Community Center Maintenance
179450 20 STATE OF MINNESOTA Operating Supplies DWI Forfeiture
179451 1,075 STREICHERS Clothing & Uniforms Animal Control
179452 775 TESSCO Equipment Parts Wireless Communication
179453 805 TESSMAN SEED CO Chemicals Park Maintenance79 53 805 SS N S CO Ce cas a a teace
179454 2,363 THATCHER COMPANY OF MONTANA Treatment Chemicals Water Treatment Plant
179455 17,701 THORPE DISTRIBUTING Beer Prairie View Liquor Store
179456 1,275 THYSSENKRUPP ELEVATOR CORPORAT Contract Svcs - Elevator Fire Station #1
179457 175 TRAVEL LODGE Conference Expense Engineering
179458 2,700 TREE TRUST Other Contracted Services Park Maintenance
179459 360 TRI-ANIM HEALTH SERVICES INC Safety Supplies Fire
179460 1,847 TX RX SYSTEMS INC Equipment Repair & Maint Wireless Communication
179461 500 UNCOMMON GATHERINGS Other Contracted Services Arts Initiative
179462 162 UNIFORMS UNLIMITED Clothing & Uniforms Police
179463 25 UPS Postage Water System Maintenance
179464 239 VALLEY NAT'L GASES-LOC 93 Equipment Parts Fleet Operating
179465 184 VALLEY RICH CO INC Equipment Repair & Maint Water System Maintenance
179466 1,133 VAN PAPER COMPANY Operating Supplies City Hall - CAM
179467 245 VERIZON WIRELESS Pager & Cell Phone Police
179468 3,333 VERNCO MAINTENANCE INC Grounds Maintenance Utility Operations - General
179469 771 VINO SOURCE, THE Transportation Den Road Liquor Store
179470 2,489 VINOCOPIA Transportation Prairie View Liquor Store
179471 11,867 VIRCHOW KRAUSE & COMPANY Other Contracted Services Capital Impr. / Maint. Fund
179472 70 VOSBEEK, PETER Tuition Reimbursement/School Police
179473 7,487 VTI Other Assets Capital Impr. / Maint. Fund
179474 15 WALMART COMMUNITY Operating Supplies Staring Lake Concert
179475 1,337 WATSON FURNITURE GROUP Capital Under $10,000 E-911 Program
179476 79 WEBB, DOUGLAS Program Fee Water Games
179477 140 WEBER, GREG Tuition Reimbursement/School Police
179478 781 WEIDENFELLER, GIN Instructor Service Arts & Drama Programs
179479 277 WENCK ASSOCIATES INC Other Contracted Services Storm Drainage
179480 144 WHITE, NICOLE Mileage & Parking Therapeutic Rec Administration
179481 80 WILSON, JOHN D.Clothing & Uniforms Police
179482 770 WINE COMPANY, THE Wine Imported Den Road Liquor Store
179483 4,127 WINE MERCHANTS INC Transportation Prairie View Liquor Store
179484 1,304 WORK CONNECTION, THE Other Contracted Services Park Maintenance
179485 2 921 WORLD CLASS WINES INC Transportation Prairie View Liquor Store1794852,921 WORLD CLASS WINES INC Transportation Prairie View Liquor Store
179487 148 WYFFELS, BILL Miscellaneous CIP - Bonds
179488 2,475 XCEL ENERGY Electric Emergency Preparedness
179489 403 YALE MECHANICAL INC Contract Svcs - HVAC Public Works/Parks
Check # Amount Vendor / Explanation Account Description Business Unit
179490 167 YELLOW PAGES, INC Advertising Prairie View Liquor Store
179491 200 BAN-KOE SYSTEMS INC Equipment Repair & Maint IT Operating
179492 463 BORDER STATES ELECTRIC SUPPLY Other Hardware IT Operating
179493 460 CDW GOVERNMENT INC.Other Hardware Capital Impr. / Maint. Fund
179494 160 CLAREYS INC Office Supplies General
179495 85 FEIDT, ADAM M Mileage & Parking IT Operating
179496 1,504 FLYING EQUITIES LLC Deposits Escrow
179497 32,251 LOGIS Network Support IT Operating
179498 37 LUXOTTICA RETAIL Clothing & Uniforms Police
179499 161 OPPIDAN INC Deposits Escrow
179500 691 PBJ HOLDINGS Deposits Escrow
179501 428 PC MALL Other Hardware Capital Impr. / Maint. Fund
179502 7,253 SRF CONSULTING GROUP INC Other Contracted Services Storm Drainage
179503 140 STAAF, CARTER Travel Expense Police
179504 20 STATE OF MINNESOTA Operating Supplies DWI Forfeiture
179505 8,163 MINNEAPOLIS DOWNTOWN COUNCIL General 494 Corridor Commission
179507 75 DEX MEDIA EAST Advertising Den Road Liquor Store
179508 153 FEDEX Equipment Repair & Maint Wireless Communication
179509 254,815 METROPOLITAN COUNCIL ENVIRONME Waste Disposal Sewer Utility - General
179510 236 QWEST Telephone Community Center Maintenance
179511 20,813 QWEST Software E-911 Program
179512 253 XCEL ENERGY Electric Prairie View Park
3,827,091 Grand Total
CITY COUNCIL AGENDA
SECTION: Report of the City Manager
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Sue Kotchevar, Office of the
City Manager/Finance
ITEM DESCRIPTION:
Resolution Relating to $3,120,000 General
Obligation Equipment Certificates,
Series 2008A
ITEM NO.: XIV.B.1.
Requested Actions
Move to: Adopt Resolution Authorizing Issuance of $3,120,000 General Obligation Equipment
Certificates, Series 2008A.
Synopsis
The purpose of the issuance of the equipment certificate is to pay for upgrades to the radio
dispatch system, two fire engines, and 20-40-15 energy improvements.
Attachments
Resolution
CERTIFICATION OF MINUTES RELATING TO
$3,120,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS,
SERIES 2008A
Issuer: City of Eden Prairie, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held October 7, 2008, at 7:00 o’clock
p.m., at the municipal offices in Eden Prairie, Minnesota.
Members present:
Members absent:
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. ____________
RESOLUTION AUTHORIZING THE ISSUANCE, AWARDING THE SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $3,120,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES OF INDEBTEDNESS, SERIES 2008A
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the Equipment Certificates of Indebtedness referred to in the title of this
certificate, certify that the documents attached hereto, as described above, have been carefully
compared with the original records of said corporation in my legal custody, from which they
have been transcribed; that said documents are a correct and complete transcript of the minutes
of a meeting of the governing body of said corporation, and correct and complete copies of all
resolutions and other actions taken and of all documents approved by the governing body at said
meeting, so far as they relate to said Equipment Certificates of Indebtedness; and that said
meeting was duly held by the governing body at the time and place and was attended throughout
by the members indicated above, pursuant to call and notice of such meeting given as required
by law.
WITNESS my hand officially as such recording officer this 7th day of October, 2008.
___________________________________
City Clerk
It was reported that _____ sealed proposals for the purchase of $3,120,000 General
Obligation Equipment Certificates of Indebtedness, Series 2008A were received prior to 10:00
o’clock a.m., pursuant to the Official Statement distributed to potential purchasers of the
Certificates by Northland Securities, Inc., independent financial advisor to the City. The
proposals have been publicly opened, read and tabulated and were found to be as follows:
(See Attached)
Councilmember ____________________ introduced the following resolution and moved its
adoption, which motion was seconded by Councilmember ____________________:
RESOLUTION AUTHORIZING THE ISSUANCE, AWARDING THE SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $3,120,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES OF INDEBTEDNESS, SERIES 2008A
BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the City),
as follows:
SECTION 1. AUTHORIZATION AND SALE.
1.01. Authorization. The City Council hereby determines that it is in the best interest of
the City to issue its General Obligation Equipment Certificates of Indebtedness, Series 2008A
(the Certificates), in the principal amount of $3,120,000, pursuant to Minnesota Statutes, Section
412.301 and Chapter 475. The proceeds of the Certificates will be used, together with any
additional funds of the City which might be required, to finance the costs of acquiring various
items of capital equipment. Said items of capital equipment have a useful life not less than the
term of the Certificates. The principal amount of the Certificates does not exceed 0.25 percent of
the market value of taxable property in the City. Accordingly, publication of this resolution in
the City’s official newspaper is not required and the Certificates are not subject to approval at an
election.
1.02. Sale. Pursuant to the Notice of Sale and the Official Statement prepared on behalf
of the City by Northland Securities, Inc., proposals for the purchase of the Certificates were
received at or before the time specified for receipt of proposals. The proposals have been
opened, publicly read and considered and the purchase price, interest rates and net interest cost
under the terms of each proposal have been determined. The most favorable proposal received is
that of ________________________________________________, in ____________________,
______________________, (the Purchaser), to purchase the Certificates at a price of
$__________________ plus accrued interest on all Certificates to the day of delivery and
payment, on the further terms and conditions hereinafter set forth.
1.03. Award. The sale of the Certificates is hereby awarded to the Purchaser and the
Mayor and City Manager are hereby authorized and directed to execute a contract on behalf of
the City for the sale of the Certificates in accordance with the terms of the proposal. The good
faith deposit of the Purchaser shall be retained and deposited by the City until the Certificates
have been delivered, and shall be deducted from the purchase price paid at settlement.
SECTION 2. CERTIFICATE TERMS; REGISTRATION; EXECUTION AND DELIVERY.
2.01. Issuance of Certificates. All acts, conditions and things which are required by the
Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be
performed precedent to and in the valid issuance of the Certificates having been done, now
existing, having happened and having been performed, it is now necessary for the City Council
to establish the form and terms of the Certificates, to provide security therefor and to issue the
Certificates forthwith.
2.02. Maturities; Interest Rates; Denominations and Payment. The Certificates shall be
originally dated as of October 1, 2008, shall be in the denomination of $5,000 each, or any
integral multiple thereof, of single maturities, shall mature on June 1 in the years and amounts
stated below, and shall bear interest from date of original issue until paid at the annual rates set
forth opposite such years and amounts, as follows:
Year Amount Rate Year Amount Rate
2009 $ % 2014 $ %
2010 2015
2011 2016
2012 2017
2013 2018
The interest thereon and, upon surrender of each Certificate, the principal amount thereof shall
be payable by check or draft issued by the Registrar described herein.
[REVISE MATURITY SCHEDULE FOR ANY TERM CERTIFICATES]
2.03. Dates and Interest Payment Dates. Upon initial delivery of the Certificates
pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06,
the date of authentication shall be noted on each Certificate so delivered, exchanged or
transferred. Interest on the Certificates shall be payable on June 1 and December 1, commencing
June 1, 2009, each such date being referred to herein as an Interest Payment Date, to the person
in whose names the Certificates are registered on the Bond Register, as hereinafter defined, at the
Registrar’s close of business on the fifteenth day of the calendar month next preceding such
Interest Payment Date, whether or not such day is a business day. Interest shall be computed on
the basis of a 360-day year composed of twelve 30-day months.
2.04. Redemption. Certificates maturing in 2017 and later years shall be subject to
redemption and prepayment at the option of the City, in whole or in part, in such order of
maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar
(or, if applicable, by the bond depository in accordance with its customary procedures) in
multiples of $5,000, on June 1, 2016, and on any date thereafter, at a price equal to the principal
amount thereof and accrued interest to the date of redemption. The City Manager shall cause
notice of the call for redemption thereof to be published as required by law, and at least thirty
days prior to the designated redemption date, shall cause notice of call for redemption to be
mailed, by first class mail, to the registered holders of any Certificates to be redeemed at their
2
addresses as they appear on the bond register described in Section 4.06 hereof, but no defect in
or failure to give such mailed notice of redemption shall affect the validity of proceedings for the
redemption of any Certificate not affected by such defect or failure. Official notice of
redemption having been given as aforesaid, the Certificates or portions of Certificates so to be
redeemed shall, on the redemption date, become due and payable at the redemption price therein
specified and from and after such date (unless the City shall default in the payment of the
redemption price) such Certificates or portions of Certificates shall cease to bear interest. Upon
partial redemption of any Certificate, a new Certificate or Certificates will be delivered to the
owner without charge, representing the remaining principal amount outstanding.
[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM CERTIFICATES-
ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM
CERTIFICATES]
[Certificates maturing on June 1, 20____ and 20____ (the Term Certificates) shall be
subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of
this Section 4.04 at a redemption price equal to the stated principal amount thereof plus interest
accrued thereon to the redemption date, without premium. The Registrar shall select for
redemption, by lot or other manner deemed fair, on June 1 in each of the following years the
following stated principal amounts of such Certificates:
Year Principal Amount
The remaining $_______________ stated principal amount of such Certificates shall be paid at
maturity on June 1, 20____.
Year Principal Amount
The remaining $_______________ stated principal amount of such Certificates shall be paid at
maturity on June 1, 20____.
Notice of redemption shall be given as provided in the preceding paragraph.]
2.05. Appointment of Initial Registrar. The City hereby appoints Wells Fargo Bank,
National Association in Minneapolis, Minnesota, as the initial bond registrar, transfer agent and
paying agent (the Registrar). The Mayor and City Manager are authorized to execute and
deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the
Registrar with another corporation, if the resulting corporation is a bank or trust company
organized under the laws of the United States or one of the states of the United States and
authorized by law to conduct such business, such corporation shall be authorized to act as
successor Registrar. The City agrees to pay the reasonable and customary charges of the
Registrar for the services performed. The City reserves the right to remove the Registrar,
effective upon not less than thirty days’ written notice and upon the appointment and acceptance
of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and
3
Certificates in its possession to the successor Registrar and shall deliver the bond register to the
successor Registrar.
2.06. Registration. The effect of registration and the rights and duties of the City and the
Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep a bond register in which the Registrar shall
provide for the registration of ownership of Certificates and the registration of transfers
and exchanges of Certificates entitled to be registered, transferred or exchanged.
(b) Transfer of Certificates. Upon surrender for transfer of any Certificate duly
endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the registered owner
thereof or by an attorney duly authorized by the registered owner in writing, the Registrar
shall authenticate and deliver, in the name of the designated transferee or transferees, one
or more new Certificates of a like aggregate principal amount and maturity, as requested
by the transferor. The Registrar may, however, close the books for registration of any
transfer after the fifteenth day of the month preceding each interest payment date and
until such interest payment date.
(c) Exchange of Certificates. Whenever any Certificates are surrendered by the
registered owner for exchange the Registrar shall authenticate and deliver one or more
new Certificates of a like aggregate principal amount and maturity, as requested by the
registered owner or the owner’s attorney in writing.
(d) Cancellation. All Certificates surrendered upon any transfer or exchange
shall be promptly canceled by the Registrar and thereafter disposed of as directed by the
City.
(e) Improper or Unauthorized Transfer. When any Certificate is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on such Certificate or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar shall incur no
liability for the refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name any Certificate is at any time registered in the bond register as the absolute
owner of the Certificate, whether the Certificate shall be overdue or not, for the purpose
of receiving payment of or on account of, the principal of and interest on the Certificate
and for all other purposes; and all payments made to any registered owner or upon the
owner’s order shall be valid and effectual to satisfy and discharge the liability upon
Certificate to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Certificates
(except for an exchange upon a partial redemption of a Certificate), the Registrar may
impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax,
4
fee or other governmental charge required to be paid with respect to such transfer or
exchange.
(h) Mutilated, Lost, Stolen or Destroyed Certificates. In case any Certificate
shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new
Certificate of like amount, number, maturity date and tenor in exchange and substitution
for and upon cancellation of any such mutilated Certificate or in lieu of and in
substitution for any Certificate destroyed, stolen or lost, upon the payment of the
reasonable expenses and charges of the Registrar in connection therewith; and, in the case
of a Certificate destroyed, stolen or lost, upon filing with the Registrar of evidence
satisfactory to it that the Certificate was destroyed, stolen or lost, and of the ownership
thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form,
substance and amount satisfactory to it, in which both the City and the Registrar shall be
named as obligees. All Certificates so surrendered to the Registrar shall be canceled by it
and evidence of such cancellation shall be given to the City. If the mutilated, destroyed,
stolen or lost Certificate has already matured or been called for redemption in accordance
with its terms it shall not be necessary to issue a new Certificate prior to payment.
(i) Authenticating Agent. The Registrar is hereby designated authenticating
agent for the Certificates, within the meaning of Minnesota Statutes, Section 475.55,
Subdivision 1, as amended.
(j) Valid Obligations. All Certificates issued upon any transfer or exchange of
Certificates shall be the valid obligations of the City, evidencing the same debt, and
entitled to the same benefits under this Resolution as the Certificates surrendered upon
such transfer or exchange.
2.07. Execution, Authentication and Delivery. The Certificates shall be prepared under
the direction of the City Manager and shall be executed on behalf of the City by the signatures of
the Mayor and the City Manager, provided that the signatures may be printed, engraved or
lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of
whose signature shall appear on the Certificates shall cease to be such officer before the delivery
of any Certificate, such signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if he had remained in office until delivery. Notwithstanding such
execution, no Certificate shall be valid or obligatory for any purpose or entitled to any security or
benefit under this Resolution unless and until a certificate of authentication on the Certificate has
been duly executed by the manual signature of the Registrar. The executed certificate of
authentication on each Certificate shall be conclusive evidence that it has been authenticated and
delivered under this Resolution. When the Certificates have been prepared, executed and
authenticated, the City Manager shall deliver them to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore executed, and the Purchaser
shall not be obligated to see to the application of the purchase price.
2.08. Form of Certificates. The Certificates shall be prepared in substantially the
following form:
5
UNITED STATES OF AMERICA
STATE OF MINNESOTA
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF INDEBTEDNESS, SERIES
2008A
Interest Rate Maturity Date Date of Original Issue CUSIP No.
% June 1, 20_ October 1, 2008
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: THOUSAND DOLLARS
THE CITY OF EDEN PRAIRIE, MINNESOTA (the City), acknowledges itself to be
indebted and hereby promises to pay to the registered owner named above, or registered assigns,
the principal amount specified above on the maturity date specified above, and promises to pay
interest thereon from the date of original issue specified above or from the most recent interest
payment date to which interest has been paid or duly provided for, at the annual rate specified
above, payable on June 1 and December 1 of each year, commencing June 1, 2009, to the person
in whose name this Certificate is registered at the close of business on the fifteenth day (whether
or not a business day) of the immediately preceding month, all subject to the provisions referred
to herein with respect to the redemption of the principal of this Certificate before maturity.
Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day
months. The interest hereon and, upon presentation and surrender hereof at the principal office
of the agent of the Registrar described below, the principal hereof are payable in lawful money
of the United States of America by check or draft drawn on Wells Fargo Bank, National
Association, in Minneapolis, Minnesota, as bond registrar, transfer agent and paying agent (the
Registrar), or its successor designated under the Resolution described herein. For the prompt and
full payment of such principal and interest as the same respectively become due, the full faith
and credit and taxing powers of the City have been and are hereby irrevocably pledged.
This Certificate is one of an issue in the aggregate principal amount of $3,120,000 issued
pursuant to a resolution adopted by the City Council on October 7, 2008 (the Resolution), to
finance the costs of acquisition of capital equipment, and is issued pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota thereunto enabling,
including Minnesota Statutes, Section 412.301 and Chapter 475.
Certificates maturing in 2017 and later years are each subject to redemption and
prepayment at the option of the City, in whole or in part, in such order of maturity dates as the
City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by
the bond depository in accordance with its customary procedures) in multiples of $5,000 on
June 1, 2016, and on any date thereafter, at a price equal to the principal amount thereof plus
interest accrued to the date of redemption. The City will cause notice of the call for redemption
6
to be published as required by law and, at least thirty days prior to the designated redemption
date, will cause notice of the call thereof to be mailed by first class mail to the registered owner
of any Certificate to be redeemed at the owner’s address as it appears on the bond register
maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption
shall affect the validity of proceedings for the redemption of any Certificate not affected by such
defect or failure. Official notice of redemption having been given as aforesaid, the Certificates
or portions of Certificates so to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified, and from and after such date (unless the City
shall default in the payment of the redemption price) such Certificates or portions of Certificates
shall cease to bear interest. Upon partial redemption of any Certificate, a new Certificate or
Certificates will be delivered to the registered owner without charge, representing the remaining
principal amount
[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM CERTIFICATES-
ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM
CERTIFICATES]
[Certificates maturing in the year 20____ and 20____ shall be subject to mandatory
redemption, at a redemption price equal to their principal amount plus interest accrued thereon to
the redemption date, without premium, on June 1 in each of the years shown below, in an amount
equal to the following principal amounts:
Term Certificates Maturing in 20--Term Certificates Maturing in 20--
Sinking Fund Aggregate
Payment Date Principal Amount
Sinking Fund Aggregate
Payment Date Principal Amount
$
$
Notice of redemption shall be given as provided in the preceding paragraph.]
As provided in the Resolution and subject to certain limitations set forth therein, this
Certificate is transferable upon the books of the City at the office of the Registrar, by the
registered owner hereof in person or by the owner's attorney duly authorized in writing upon
surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly
executed by the registered owner or the owner's attorney; and may also be surrendered in
exchange for Certificates of other authorized denominations. Upon such transfer or exchange the
City will cause a new Certificate or Certificates to be issued in the name of the transferee or
registered owner, of the same aggregate principal amount, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any tax, fee or governmental charge
required to be paid with respect to such transfer or exchange.
The Certificates have been designated by the City as “qualified tax-exempt obligations”
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986.
7
The City and the Registrar may deem and treat the person in whose name this Certificate
is registered as the absolute owner hereof, whether this Certificate is overdue or not, for the
purpose of receiving payment and for all other purposes, and neither the City nor the Registrar
shall be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be done,
to exist, to happen and to be performed preliminary to and in the issuance of this Certificate in
order to make it a valid and binding general obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required; that, prior to
the issuance hereof, the City Council has levied ad valorem taxes on all taxable property in the
City, which taxes will be collectible for the years and in amounts sufficient to produce sums not
less than five percent in excess of the principal of and interest on the Certificates when due, and
has appropriated such taxes to its General Obligation Equipment Certificates of Indebtedness,
Series 2008A Certificate Fund for the payment of such principal and interest; that if necessary
for payment of such principal and interest, additional ad valorem taxes are required to be levied
upon all taxable property in the City, without limitation as to rate or amount; and that the
issuance of this Certificate, together with all other indebtedness of the City outstanding on the
date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of
the City to exceed any constitutional or statutory limitation of indebtedness.
This Certificate shall not be valid or become obligatory for any purpose or be entitled to
any security or benefit under the Resolution until the Certificate of Authentication hereon shall
have been executed by manual signature of the Registrar.
IN WITNESS WHEREOF, the City of Eden Prairie, Minnesota, by its City Council, has
caused this Certificate to be executed on its behalf by the facsimile signatures of the Mayor and
City Manager.
CITY OF EDEN PRAIRIE, MINNESOTA
(facsimile signature -- City Manager) (facsimile signature -- Mayor)
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates delivered pursuant to the Resolution mentioned within.
Date of Authentication: _________________ WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Registrar
By _______________________________
Authorized Representative
______________
8
The following abbreviations, when used in the inscription on the face of this Certificate, shall be
construed as though they were written out in full according to the applicable laws or regulations:
TEN COM - as tenants in common UTMA ................... as Custodian for .……..............
(Cust) (Minor)
TEN ENT - as tenants by the entireties under Uniform Transfers to Minors Act ..………...
(State)
JT TEN -- as joint tenants with right of survivorship and not as tenants in common
Additional abbreviations may also be used.
__________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto _________________
the within Certificate and all rights thereunder, and does hereby irrevocably constitute and
appoint _________________ attorney to transfer the said Certificate on the books kept for
registration of the within Certificate, with full power of substitution in the premises.
Dated: __________________ ________________________________________________
NOTICE: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of the
within Certificate in every particular, without alteration or
enlargement or any change whatsoever.
Signature Guaranteed: ___________________________________
Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements
of the Registrar, which requirements include membership or participation in STAMP or such
other "signature guaranty program" as may be determined by the Registrar in addition to or in
substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE: ____________________
[end of certificate form]
SECTION 3. GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS, SERIES 2008A CERTIFICATE FUND. So long as any of the Certificates
are outstanding and any principal of or interest thereon unpaid, the Finance Director shall
maintain a separate debt service fund on the official books and records of the City to be known
as the General Obligation Equipment Certificates of Indebtedness, Series 2008A Certificate Fund
(the Certificate Fund), and the principal of and interest on the Certificates shall be payable from
the Certificate Fund. The City irrevocably appropriates to the Certificate Fund: (a) any amount
in excess of $_______ received from the Purchaser; (b) all taxes levied and collected in
accordance with this Resolution; and (c) all other moneys as shall be appropriated by the City
9
Council to the Certificate Fund from time to time. If the balance in the Certificate Fund is at any
time insufficient to pay all interest and principal then due on all Certificates payable therefrom,
the payment shall be made from any fund of the City which is available for that purpose, subject
to reimbursement from the Certificate Fund when the balance therein is sufficient, and the City
Council covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes
to take care of any accumulated or anticipated deficiency, which levy is not subject to any
constitutional or statutory limitation.
SECTION 4. PLEDGE OF TAXING POWERS. For the prompt and full payment of the
principal of and interest on the Certificates as such payments respectively become due, the full
faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged.
In order to produce aggregate amounts not less than 5% in excess of the amount needed to meet
when due the principal and interest payments on the Certificates, ad valorem taxes are hereby
levied on all taxable property in the City. The taxes are to be levied and collected in the
following years and amounts:
Levy Years Collection Years Amount
2008-2016 2009-2017 See attached Levy Computation
The taxes shall be irrepealable as long as any of the Certificates are outstanding and unpaid,
provided that the City reserves the right and power to reduce the tax levies in accordance with
the provisions of Minnesota Statutes, Section 475.61.
SECTION 5. CERTIFICATE FUND BALANCE RESTRICTION. In order to ensure
compliance with the Code, and applicable Treasury Regulations (the Regulations), upon
allocation of any funds to the Certificate Fund, the balance then on hand in the Fund shall be
ascertained. If it exceeds the amount of principal and interest on the Certificates to become due
and payable through June 1 next following, plus a reasonable carryover equal to 1/12th of the
debt service due in the following bond year, the excess shall (unless an opinion is otherwise
received from bond counsel) be used to prepay or purchase Certificates, or invested at a yield
which does not exceed the yield on the Certificates calculated in accordance with Section 148 of
the Code.
SECTION 6. DEFEASANCE. When all of the Certificates have been discharged as provided in
this section, all pledges, covenants and other rights granted by this resolution to the registered
owners of the Certificates shall cease. The City may discharge its obligations with respect to any
Certificates which are due on any date by depositing with the Registrar on or before that date a
sum sufficient for the payment thereof in full; or, if any Certificate should not be paid when due,
it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the
payment thereof in full with interest accrued from the due date to the date of such deposit. The
City may also discharge its obligations with respect to any prepayable Certificates called for
redemption on any date when they are prepayable according to their terms, by depositing with
the Registrar on or before that date an amount equal to the principal, interest and redemption
premium, if any, which are then due, provided that notice of such redemption has been duly
given as provided herein. The City may also at any time discharge its obligations with respect to
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any Certificates, subject to the provisions of law now or hereafter authorizing and regulating
such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow
agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing
interest payable at such time and at such rates and maturing or callable at the holder’s option on
such dates as shall be required to pay all principal and interest to become due thereon to maturity
or earlier designated redemption date. Provided, however, that if such deposit is made more than
ninety days before the maturity date or specified redemption date of the Certificates to be
discharged, the City shall have received a written opinion of Bond Counsel to the effect that such
deposit does not adversely affect the exemption of interest on any Certificates from federal
income taxation and a written report of an accountant or investment banking firm verifying that
the deposit is sufficient to pay when due all of the principal and interest on the Certificates to be
discharged on and before their maturity dates or earlier designated redemption date.
SECTION 7. CERTIFICATION OF PROCEEDINGS.
7.01. Registration of Certificates. The City Manager is hereby authorized and directed to
file a certified copy of this resolution with the County Auditor of Hennepin County and obtain a
certificate that the Certificates have been duly entered upon the County Auditor’s bond register
and that the tax for the payment of the Certificates has been levied as required by law.
7.02. Authentication of Transcript. The officers of the City and the County Auditor are
hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney
LLP, Bond Counsel, certified copies of all proceedings and records relating to the Certificates
and such other affidavits, certificates and information as may be required to show the facts
relating to the legality and marketability of the Certificates, as the same appear from the books
and records in their custody and control or as otherwise known to them, and all such certified
copies, affidavits and certificates, including any heretofore furnished, shall be deemed
representations of the City as to the correctness of all statements contained therein.
7.03. Official Statement. The Preliminary Official Statement relating to the Certificates,
dated_____________, 2008, relating to the Certificates prepared and distributed by Northland
Securities, Inc. is hereby approved. Northland Securities, Inc., is hereby authorized on behalf of
the City to prepare and distribute to the Purchaser within seven business days from the date
hereof, a supplement to the Official Statement listing the offering price, the interest rates, selling
compensation, delivery date, the underwriters and such other information relating to the
Certificates required to be included in the Official Statement by Rule l5c2-12 adopted by the
Securities and Exchange Commission (the SEC) under the Securities Exchange Act of 1934.
The officers of the City are hereby authorized and directed to execute such certificates as may be
appropriate concerning the accuracy, completeness and sufficiency of the Official Statement.
SECTION 8. TAX COVENANTS; ARBITRAGE MATTERS AND CONTINUING
DISCLOSURE.
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8.01. General Tax Covenant. The City covenants and agrees with the registered owners
from time to time of the Certificates that it will not take, or permit to be taken by any of its
officers, employees or agents, any actions that would cause interest on the Certificates to become
includable in gross income of the recipient under the Internal Revenue Code of 1986 (the Code)
and applicable Treasury Regulations (the Regulations), and covenants to take any and all actions
within its powers to ensure that the interest on the Certificates will not become includable in
gross income of the recipient under the Code and the Regulations. In particular, the City
covenants and agrees that all proceeds of the Certificates will be expended solely for the
payment of the costs of acquisition of capital equipment to be owned and maintained by the City
and used in the City’s general governmental operations. The City shall not enter into any lease,
use or other agreement with any non-governmental person relating to the use of the equipment or
security for the payment of the Certificates which might cause the Certificates to be considered
"private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code.
8.02. Arbitrage Certification. The Mayor and City Manager being the officers of the
City charged with the responsibility for issuing the Certificates pursuant to this Resolution, are
authorized and directed to execute and deliver to the Purchaser a certificate in accordance with
the provisions of Section 148 of the Code, and applicable Regulations, stating the facts, estimates
and circumstances in existence on the date of issue and delivery of the Certificates which make it
reasonable to expect that the proceeds of the Certificates will not be used in a manner that would
cause the Certificates to be "arbitrage bonds" within the meaning of the Code and Regulations.
8.03. Arbitrage Rebate Exemption. (a) It is hereby found that the City has general
taxing powers, that no Certificate is a “private activity bond” within the meaning of Section 141
of the Code, that 95% or more of the net proceeds of the Certificate are to be used for local
governmental activities of the City, and that the aggregate face amount of all tax-exempt
obligations (other than private activity bonds) issued by the City and all subordinate entities
thereof during the year 2008 is not reasonably expected to exceed $5,000,000. Therefore,
pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to
comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the
Code.
(b) Notwithstanding the provisions of paragraph (a) of this Section 8.03, if the arbitrage
rebate provisions of Section 148(f) of the Code applies to the Certificate, the City hereby
covenants and agrees to make the determinations, retain records and rebate to the United States
the amounts at the times and in the manner required by said Section 148(f) and applicable
Regulations.
8.04. Qualified Tax-Exempt Obligations. The Council hereby designates the Certificates
as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code relating to
the disallowance of interest expense for financial institutions, and hereby finds that the
reasonably anticipated amount of tax-exempt obligations which are not private activity bonds
(not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds
for the purpose of this representation) which will be issued by the City and all subordinate
entities during calendar year 2008 does not exceed $10,000,000.
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8.05. Reimbursement. The City certifies that the proceeds of the Certificates will not be
used by the City to reimburse itself for any expenditure with respect to the equipment which the
City paid or will have paid more than 60 days prior to the issuance of the Certificates unless,
with respect to such prior expenditures, the City shall have made a declaration of official intent
which complies with the provisions of Section 1.150-2 of the Regulations; provided that this
certification shall not apply (i) with respect to certain de minimis expenditures, if any, with
respect to the equipment meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or
(ii) with respect to "preliminary expenditures" for the equipment as defined in Section 1.150-
2(f)(2) of the Regulations which in the aggregate do not exceed 20% of the "issue price" of the
Certificates.
8.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public
availability of certain information relating to the Certificates and the security therefor and to
permit the Purchaser and other participating underwriters in the primary offering of the
Certificates to comply with amendments to Rule 15c2-12 promulgated by the SEC under the
Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as
in effect and interpreted from time to time, the Rule), which will enhance the marketability of the
Certificates, the City hereby makes the following covenants and agreements for the benefit of the
Owners (as hereinafter defined) from time to time of the outstanding Certificates. The City is the
only obligated person in respect of the Certificates within the meaning of the Rule for purposes
of identifying the entities in respect of which continuing disclosure must be made. The City has
complied in all material respects with any undertaking previously entered into by it under the
Rule. If the City fails to comply with any provisions of this section, any person aggrieved
thereby, including the Owners of any outstanding Certificates, may take whatever action at law
or in equity may appear necessary or appropriate to enforce performance and observance of any
agreement or covenant contained in this section, including an action for a writ of mandamus or
specific performance. Direct, indirect, consequential and punitive damages shall not be
recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything
to the contrary contained herein, in no event shall a default under this section constitute a default
under the Certificates or under any other provision of this resolution. As used in this section,
Owner or Certificateowner means, in respect of a Certificate, the registered owner or owners
thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as
hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such
beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used
herein, Beneficial Owner means, in respect of a Certificate, any person or entity which (i) has the
power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of,
such Certificate (including persons or entities holding Certificates through nominees,
depositories or other intermediaries), or (b) is treated as the owner of the Certificate for federal
income tax purposes.
(b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection
(c) hereof, either directly or indirectly through an agent designated by the City, the following
information at the following times:
(1) on or before 365 days after the end of each fiscal year of the City, commencing with
the fiscal year ending December 31, 2008, the following financial information and
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operating data in respect of the City (the Disclosure Information):
(A) the audited financial statements of the City for such fiscal year, containing
balance sheets as of the end of such fiscal year and a statement of operations,
changes in fund balances and cash flows for the fiscal year then ended, showing
in comparative form such figures for the preceding fiscal year of the City,
prepared in accordance with generally accepted accounting principles
promulgated by the Financial Accounting Standards Board as modified in
accordance with the governmental accounting standards promulgated by the
Governmental Accounting Standards Board or as otherwise provided under
Minnesota law, as in effect from time to time, or, if and to the extent such
financial statements have not been prepared in accordance with such generally
accepted accounting principles for reasons beyond the reasonable control of the
City, noting the discrepancies therefrom and the effect thereof, and certified as
to accuracy and completeness in all material respects by the fiscal officer of the
City; and
(B) to the extent not included in the financial statements referred to in paragraph (A)
hereof, the information for such fiscal year or for the period most recently
available of the type contained in the Official Statement under the captions
ECONOMIC AND FINANCIAL INFORMATION; SUMMARY OF DEBT
AND DEBT STATISTICS; GENERAL INFORMATION- “Major Employers”
and “Building Permits.”
Notwithstanding the foregoing paragraph, if the audited financial statements are not available by
the date specified, the City shall provide on or before such date unaudited financial statements in
the format required for the audited financial statements as part of the Disclosure Information and,
within 10 days after the receipt thereof, the City shall provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it is updated as
required hereby, from other documents, including official statements, which have been submitted
to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the
document incorporated by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure
Information each document so incorporated by reference. If any part of the Disclosure
Information can no longer be generated because the operations of the City have materially
changed or been discontinued, such Disclosure Information need no longer be provided if the
City includes in the Disclosure Information a statement to such effect; provided, however, if such
operations have been replaced by other City operations in respect of which data is not included in
the Disclosure Information and the City determines that certain specified data regarding such
replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from
and after such determination, the Disclosure Information shall include such additional specified
data regarding the replacement operations. If the Disclosure Information is changed or this
section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall
include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an
explanation of the reasons for the amendment and the effect of any change in the type of
financial information or operating data provided.
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(2) In a timely manner, notice of the occurrence of any of the following events which is
a Material Fact (as hereinafter defined):
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on debt service reserves reflecting financial difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions or events affecting the tax-exempt status of the security;
(G) Modifications to rights of security holders;
(H) Bond calls;
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the securities;
and
(K) Rating changes.
As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a
reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a
Certificate or, if not disclosed, would significantly alter the total information otherwise available
to an investor from the Official Statement, information disclosed hereunder or information
generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also
an event that would be deemed material for purposes of the purchase, holding or sale of a
Certificate within the meaning of applicable federal securities laws, as interpreted at the time of
discovery of the occurrence of the event.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the City to provide the Disclosure Information required under
paragraph (b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this section pursuant to subsection (d),
together with a copy of such amendment or supplement and any explanation
provided by the City under subsection (d)(2);
(C) the termination of the obligations of the City under this section pursuant to
subsection (d);
(D) any change in the accounting principles pursuant to which the financial
statements constituting a portion of the Disclosure Information are prepared;
and
(E) any change in the fiscal year of the City.
(c) Manner of Disclosure. The City agrees to make available the information described in
subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as
appropriate:
(1) the information described in paragraph (1) of subsection (b), to each then nationally
15
recognized municipal securities information repository under the Rule and to any
state information depository then designated or operated by the State of Minnesota
as contemplated by the Rule (the State Depository), if any;
(2) the information described in paragraphs (2) and (3) of subsection (b), to the
Municipal Securities Rulemaking Board and to the State Depository, if any; and
(3) the information described in subsection (b), to any rating agency then maintaining a
rating of the Certificates at the request of the City and, at the expense of such
Certificateowner, to any Certificateowner who requests in writing such information,
at the time of transmission under paragraphs (1) or (2) of this subsection (c), as the
case may be, or, if such information is transmitted with a subsequent time of release,
at the time such information is to be released.
(d) Term; Amendments; Interpretation.
(1) The covenants of the City in this section shall remain in effect so long as any
Certificates are outstanding. Notwithstanding the preceding sentence, however, the
obligations of the City under this section shall terminate and be without further
effect as of any date on which the City delivers to the Registrar an opinion of Bond
Counsel to the effect that, because of legislative action or final judicial or
administrative actions or proceedings, the failure of the City to comply with the
requirements of this section will not cause participating underwriters in the primary
offering of the Certificates to be in violation of the Rule or other applicable
requirements of the Securities Exchange Act of 1934, as amended, or any statutes or
laws successory thereto or amendatory thereof.
(2) This section (and the form and requirements of the Disclosure Information) may be
amended or supplemented by the City from time to time, without notice to (except as
provided in paragraph (c)(3) hereof) or the consent of the Owners of any
Certificates, by a resolution of this Council filed in the office of the recording officer
of the City accompanied by an opinion of Bond Counsel, who may rely on
certificates of the City and others and the opinion may be subject to customary
qualifications, to the effect that: (i) such amendment or supplement (a) is made in
connection with a change in circumstances that arises from a change in law or
regulation or a change in the identity, nature or status of the City or the type of
operations conducted by the City, or (b) is required by, or better complies with, the
provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or
supplemented would have complied with the requirements of paragraph (b)(5) of the
Rule at the time of the primary offering of the Certificates, giving effect to any
change in circumstances applicable under clause (i)(a) and assuming that the Rule as
in effect and interpreted at the time of the amendment or supplement was in effect at
the time of the primary offering; and (iii) such amendment or supplement does not
materially impair the interests of the Certificateowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide,
16
17
contemporaneously with the effectiveness of such amendment, an explanation of the
reasons for the amendment and the effect, if any, of the change in the type of
financial information or operating data being provided hereunder.
(3) This section is entered into to comply with the continuing disclosure provisions of
the Rule and should be construed so as to satisfy the requirements of paragraph
(b)(5) of the Rule.
Upon vote being taken thereon the following voted in favor thereof:
and the following voted against the same:
whereupon the resolution was declared duly passed and adopted.
CITY COUNCIL AGENDA
SECTION: Report of the City Manager
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Sue Kotchevar, Office of the
City Manager/Finance
ITEM DESCRIPTION:
Resolution Relating to $1,845,000 General
Obligation Permanent Improvement
Revolving Fund Bonds, Series 2008B
ITEM NO.: XIV.B.2.
Requested Action
Move to: Adopt Resolution Relating to $1,845,000 General Obligation Permanent Improvement
Revolving Fund Bonds, Series 2008B.
Synopsis
The purpose of the issuance of the improvement bonds is pay for improvements on West 70th
Street including extending West 70th Street as a 3-lane roadway west to Flying Cloud Drive.
Attachments
Resolutions
CERTIFICATION OF MINUTES RELATING TO
$1,845,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND
BONDS, SERIES 2008B
Issuer: City of Eden Prairie, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on October 7, 2008, at 7:00 p.m.,
at the municipal offices in Eden Prairie, Minnesota.
.
Members present:
Members absent:
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. ____________
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $1,845,000 GENERAL OBLIGATION PERMANENT
IMPROVEMENT REVOLVING FUND BONDS, SERIES 2008B
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the bonds referred to in the title of this certificate, certify that the documents
attached hereto, as described above, have been carefully compared with the original records of
said corporation in my legal custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of said corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far as they relate
to said bonds; and that said meeting was duly held by the governing body at the time and place
and was attended throughout by the members indicated above, pursuant to call and notice of such
meeting given as required by law.
WITNESS my hand officially as such recording officer this 7th day of October, 2008.
_________________________________
City Clerk
It was reported that _____ sealed proposals for the purchase of $1,845,000 General
Obligation Permanent Improvement Revolving Fund Bonds, Series 2008B were received prior to
10:00 o’clock a.m., pursuant to the Official Statement distributed to potential purchasers of the
Bonds by Northland Securities, Inc., independent financial advisor to the City. The proposals
have been publicly opened, read and tabulated and were found to be as follows:
(See Attached)
Member ____________________ introduced the following resolution and moved its adoption,
which motion was seconded by Member ____________________:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $1,845,000 GENERAL OBLIGATION PERMANENT
IMPROVEMENT REVOLVING FUND BONDS, SERIES 2008B
BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the City),
as follows:
SECTION 1. AUTHORIZATION AND SALE.
1.01. Authorization. On October 16, 2007, the City Council approved a Development
Agreement (the Agreement) with Liberty Property Limited Partnership (the Owner). The Owner
is the sole owner of certain real property abutting West 70th Street in the City and related to
certain public improvement projects associated with the West 70th Street Improvements
including extending West 70th Street as a 3-lane roadway west to Flying Cloud Drive (the
Projects). The City Council hereby finds that the Agreement, in which the Owner petitions the
City Council to construct the Projects and to assess their entire cost against its property,
constitutes a sufficient petition, pursuant to Minnesota Statutes, Section 429.031, Subdivision 3.
The Projects are hereby ordered to be constructed. The City Council hereby determines that it is
in the best interest of the City to issue its $1,845,000 principal amount of General Obligation
Permanent Improvement Revolving Fund Bonds, Series 2008B (the Bonds) to finance the
Projects from the Permanent Improvement Revolving Fund.
1.02. Sale. Pursuant to the Official Statement prepared on behalf of the City by
Northland Securities, Inc., financial advisor to the City, sealed proposals for the purchase of the
Bonds were received at or before the time specified for receipt of proposals. The proposals have
been opened, publicly read and considered and the purchase price, interest rates and net interest
cost under the terms of each proposal have been determined. The most favorable proposal
received is that of _______________________________________________
______________________________ in ____________________, ____________________, and
associates (the Purchaser), to purchase the Bonds at a price of $____________________ plus
accrued interest on all Bonds to the day of delivery and payment, on the further terms and
conditions hereinafter set forth.
SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY.
2.01. Issuance of Bonds. All acts, conditions and things which are required by the
Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be
performed precedent to and in the valid issuance of the Bonds having been done, now existing,
having happened and having been performed, it is now necessary for the City Council to
establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds
forthwith.
2.02. Maturities; Interest Rates; Denominations and Payment. The Bonds shall be
originally dated as of October 1, 2008, shall be in the denomination of $5,000 each, or any
integral multiple thereof, of single maturities, shall mature on December 1 in the years and
amounts stated below, and shall bear interest from date of issue until paid or duly called for
redemption, at the annual rates set forth opposite such years and amounts, as follows:
Year Amount Rate Year Amount Rate
2009 $ % 2017 $ %
2010 2018
2011 2019
2012 2020
2013 2021
2014 2022
2015 2023
2016
[REVISE MATURITY SCHEDULE FOR ANY TERM BONDS]
The Bonds shall be issuable only in fully registered form. The interest thereon and, upon
surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by
the Registrar described herein; provided that, so long as the Bonds are registered in the name of a
securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and
interest shall be payable in accordance with the operational arrangements of the securities
depository.
2.03. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to
Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of
authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on
the Bonds shall be payable on June 1 and December 1 in each year, commencing June 1, 2009,
each such date being referred to herein as an Interest Payment Date, to the persons in whose
names the Bonds are registered on the Bond Register, as hereinafter defined, at the Registrar’s
close of business on the fifteenth day of the month immediately preceding the Interest Payment
Date, whether or not such day is a business day. Interest shall be computed on the basis of a
360-day year composed of twelve 30-day months.
2.04. Redemption. Bonds maturing in 2017 and later years shall be subject to
redemption and prepayment at the option of the City, in whole or in part, in such order of
maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar
(or, if applicable, by the securities depository in accordance with its customary procedures) in
multiples of $5,000, on December 1, 2016, and on any date thereafter, at a price equal to the
principal amount thereof and accrued interest to the date of redemption. The City Manager shall
cause notice of the call for redemption thereof to be published as required by law, and at least
thirty days prior to the designated redemption date, shall cause notice of call for redemption to be
mailed, by first class mail, to the registered holders of any Bonds to be redeemed at their
addresses as they appear on the bond register described in Section 2.06 hereof. No defect in or
failure to give such mailed notice of redemption shall affect the validity of proceedings for the
redemption of any Bond not affected by such defect or failure. Official notice of redemption
2
having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price therein specified and from and
after such date (unless the City shall default in the payment of the redemption price) such Bonds
or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new
Bond or Bonds will be delivered to the owner without charge, representing the remaining
principal amount outstanding.
[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS-
ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS]
[Bonds maturing on December 1, 20____ and 20____ (the Term Bonds) shall be subject
to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this
Section 2.04 at a redemption price equal to the stated principal amount thereof plus interest
accrued thereon to the redemption date, without premium. The Registrar shall select for
redemption, by lot or other manner deemed fair, on December 1 in each of the following years
the following stated principal amounts of such Bonds:
Year Principal Amount
The remaining $_______________ stated principal amount of such Bonds shall be paid at
maturity on December 1, 20____.
Year Principal Amount
The remaining $_______________ stated principal amount of such Bonds shall be paid at
maturity on December 1, 20____.
Notice of redemption shall be given as provided in the preceding paragraph.]
2.05. Appointment of Initial Registrar. The City hereby appoints Wells Fargo Bank,
National Association in Minneapolis, Minnesota, as the initial bond registrar, transfer agent and
paying agent (the Registrar). The Mayor and City Manager are authorized to execute and
deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the
Registrar with another corporation, if the resulting corporation is a bank or trust company
organized under the laws of the United States or one of the states of the United States and
authorized by law to conduct such business, such corporation shall be authorized to act as
successor Registrar. The City agrees to pay the reasonable and customary charges of the
Registrar for the services performed. The City reserves the right to remove the Registrar,
effective upon not less than thirty days’ written notice and upon the appointment and acceptance
of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and
Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the
successor Registrar.
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2.06. Registration. The effect of registration and the rights and duties of the City and the
Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its principal corporate trust office a
register (the Bond Register) in which the Registrar shall provide for the registration of
ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to
be registered, transferred or exchanged. The term Holder or Bondholder as used herein
shall mean the person (whether a natural person, corporation, association, partnership,
trust, governmental unit, or other legal entity) in whose name a Bond is registered in the
Bond Register.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by
the Holder thereof or accompanied by a written instrument of transfer, in form
satisfactory to the Registrar, duly executed by the Holder thereof or by an attorney duly
authorized by the Holder in writing, the Registrar shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Bonds of a like
aggregate principal amount and maturity, as requested by the transferor.
(c) Exchange of Bonds. At the option of the Holder of any Bond in a
denomination greater than $5,000, such Bond may be exchanged for other Bonds of
authorized denominations, of the same maturity and a like aggregate principal amount,
upon surrender of the Bond to be exchanged at the office of the Registrar. Whenever any
Bond is so surrendered for exchange the City shall execute and the Registrar shall
authenticate and deliver the Bonds which the Bondholder making the exchange is entitled
to receive.
(d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall
be promptly canceled by the Registrar and thereafter disposed of. The Registrar shall
furnish the City at least once each year a certificate setting forth the principal amounts
and numbers of Bonds canceled and destroyed.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of transfer is valid and genuine and
that the requested transfer is legally authorized. The Registrar shall incur no liability for
the refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name any Bond is at any time registered in the Bond Register as the absolute
owner of the Bond, whether the Bond shall be overdue or not, for the purpose of
receiving payment of or on account of, the principal of and interest on the Bond and for
all other purposes; and all payments made to or upon the order of such Holder shall be
valid and effectual to satisfy and discharge the liability upon such Bond to the extent of
the sum or sums so paid.
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(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except
for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge
upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become
mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like
amount, number, maturity date and tenor in exchange and substitution for and upon
cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the
Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed,
stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an
appropriate bond or indemnity in form, substance and amount satisfactory to it, in which
both the City and the Registrar shall be named as obligees. All Bonds so surrendered to
the Registrar shall be canceled by it and evidence of such cancellation shall be given to
the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been
called for redemption in accordance with its terms it shall not be necessary to issue a new
Bond prior to payment.
(i) Authenticating Agent. The Registrar is hereby designated authenticating
agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55,
Subdivision 1, as amended.
(j) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds
shall be the valid obligations of the City, evidencing the same debt, and entitled to the
same benefits under this Resolution as the Bonds surrendered upon such transfer or
exchange.
2.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the
direction of the City Manager and shall be executed on behalf of the City by the signatures of the
Mayor and the City Manager, provided that the signatures may be printed, engraved or
lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of
whose signature shall appear on any Bond shall cease to be such officer before the delivery of
such Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if such officer had remained in office until the date of delivery of such Bond.
Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled
to any security or benefit under this Resolution unless and until a certificate of authentication on
the Bond, substantially in the form provided in Section 2.09, has been executed by the manual
signature of an authorized representative of the Registrar. Certificates of authentication on
different Bonds need not be signed by the same representative. The executed certificate of
authentication on any Bond shall be conclusive evidence that it has been duly authenticated and
delivered under this Resolution. When the Bonds have been prepared, executed and
authenticated, the City Manager shall deliver them to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore executed, and the Purchaser
shall not be obligated to see to the application of the purchase price.
5
2.08. Securities Depository. (a) For purposes of this section the following terms shall
have the following meanings:
“Beneficial Owner” shall mean, whenever used with respect to a Bond, the person in
whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the
records of such Participant, or such person’s subrogee.
“Cede & Co.” shall mean Cede & Co., the nominee of DTC, and any successor nominee
of DTC with respect to the Bonds.
“DTC” shall mean The Depository Trust Company of New York, New York.
“Participant” shall mean any broker-dealer, bank or other financial institution for which
DTC holds Bonds as securities depository.
“Representation Letter” shall mean the Representation Letter pursuant to which the City
agrees to comply with DTC’s Operational Arrangements.
(b) The Bonds shall be initially issued as separately authenticated fully registered bonds,
and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon
initial issuance, the ownership of such Bonds shall be registered in the bond register in the name
of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee)
as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment
of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be
redeemed, if any, giving any notice permitted or required to be given to registered owners of
Bonds under this resolution, registering the transfer of Bonds, and for all other purposes
whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary.
Neither the Registrar nor the City shall have any responsibility or obligation to any Participant,
any person claiming a beneficial ownership interest in the Bonds under or through DTC or any
Participant, or any other person which is not shown on the bond register as being a registered
owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any
Participant, with respect to the payment by DTC or any Participant of any amount with respect to
the principal of or interest on the Bonds, with respect to any notice which is permitted or
required to be given to owners of Bonds under this resolution, with respect to the selection by
DTC or any Participant of any person to receive payment in the event of a partial redemption of
the Bonds, or with respect to any consent given or other action taken by DTC as registered owner
of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC,
the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with
respect to such Bond, only to Cede & Co. in accordance with DTC’s Operational Arrangements,
and all such payments shall be valid and effective to fully satisfy and discharge the City’s
obligations with respect to the principal of and interest on the Bonds to the extent of the sum or
sums so paid. No person other than DTC shall receive an authenticated Bond for each separate
stated maturity evidencing the obligation of the City to make payments of principal and interest.
Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to
substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new
nominee in accordance with paragraph (e) hereof.
6
(c) In the event the City determines that it is in the best interest of the Beneficial Owners
that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and
the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of
Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance
with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect
to the Bonds at any time by giving notice to the City and the Registrar and discharging its
responsibilities with respect thereto under applicable law. In such event the Bonds will be
transferable in accordance with paragraph (e) hereof.
(d) The execution and delivery of the Representation Letter to DTC, if not previously
filed with DTC, by the Mayor or City Manager is hereby authorized and directed.
(e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b)
or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of
the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted
transferee in accordance with the provisions of this resolution. In the event Bonds in the form of
certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as
owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions
of this resolution shall also apply to all matters relating thereto, including, without limitation, the
printing of such Bonds in the form of bond certificates and the method of payment of principal of
and interest on such Bonds in the form of bond certificates.
2.09. Form of Bonds. The Bonds shall be prepared in substantially the following form:
7
UNITED STATES OF AMERICA
STATE OF MINNESOTA
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION PERMANENT IMPROVEMENT
REVOLVING FUND BOND, SERIES 2008B
Interest Rate Maturity Date Date of Original Issue CUSIP No.
% December 1, 20__ October 1, 2008
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: THOUSAND DOLLARS
THE CITY OF EDEN PRAIRIE, Minnesota (the City) acknowledges itself to be
indebted and for value received hereby promises to pay to the registered owner specified above,
or registered assigns, the principal amount specified above on the maturity date specified above
and promises to pay interest thereon from the date of original issue specified above or from the
most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or
duly provided for, at the annual interest rate specified above, payable on June 1 and December 1
in each year, commencing June 1, 2009 (each such date, an Interest Payment Date), all subject to
the provisions referred to herein with respect to the redemption of the principal of this Bond
before maturity. The interest so payable on any Interest Payment Date shall be paid to the person
in whose name this Bond is registered at the close of business on the fifteenth day (whether or
not a business day) of the calendar month immediately preceding the Interest Payment Date.
Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day
months. The interest hereon and, upon presentation and surrender hereof at the principal office
of the agent of the Registrar described below, the principal hereof are payable in lawful money
of the United States of America by check or draft drawn on Wells Fargo Bank, National
Association in Minneapolis, Minnesota, as bond registrar, transfer agent and paying agent, or its
successor designated under the Resolution described herein (the Registrar). For the prompt and
full payment of such principal and interest as the same respectively become due, the full faith
and credit and taxing powers of the City have been and are hereby irrevocably pledged.
This Bond is one of an issue (the Bonds) in the aggregate principal amount of $1,845,000
issued pursuant to a resolution adopted by the City Council on October 7, 2008 (the Resolution),
to provide funds to be deposited to the Permanent Improvement Revolving Fund of the City, a
permanent fund established for the financing of local improvements for which special
assessments may be levied against property specially benefited thereby, and is issued pursuant to
and in full conformity with the Constitution and laws of the State of Minnesota thereunto
enabling, including Minnesota Statutes, Chapters 429 and 475. The Bonds are issuable only in
fully registered form, in the denomination of $5,000 or any integral multiple thereof, of single
maturities.
8
Bonds maturing in 2017 and later years shall be subject to redemption and prepayment at
the option of the City, in whole or in part, in such order of maturity dates as the City may select
and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond
depository in accordance with its customary procedures) in multiples of $5,000, on
December 1, 2016, and on any date thereafter, at a price equal to the principal amount thereof
and accrued interest to the date of redemption. The City shall cause notice of the call for
redemption thereof to be published as required by law, and at least thirty days prior to the
designated redemption date, shall cause notice of call for redemption to be mailed, by first class
mail, to the registered holders of any Bonds, at the holders’ addresses as they appear on the bond
register maintained by the Bond Registrar. No defect in or failure to give such mailed notice of
redemption shall affect the validity of proceedings for the redemption of any Bond not affected
by such defect or failure. Official notice of redemption having been given as aforesaid, the
Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified and from and after such date (unless the City
shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease
to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to
the owner without charge, representing the remaining principal amount outstanding.
[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS-
ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS]
[Bonds maturing in the year 20____ and 20____ shall be subject to mandatory
redemption, at a redemption price equal to their principal amount plus interest accrued thereon to
the redemption date, without premium, on December 1 in each of the years shown below, in an
amount equal to the following principal amounts:
Term Bonds Maturing in 20-- Term Bonds Maturing in 20--
Sinking Fund Aggregate
Payment Date Principal Amount
Sinking Fund Aggregate
Payment Date Principal Amount
$
$
Notice of redemption shall be given as provided in the preceding paragraph.]
As provided in the Resolution and subject to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the agent of the
Registrar, by the registered owner hereof in person or by the owner’s attorney duly authorized in
writing upon surrender hereof together with a written instrument of transfer satisfactory to the
Registrar, duly executed by the registered owner or the owner’s attorney; and may also be
surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or
exchange the City will cause a new Bond or Bonds to be issued in the name of the designated
transferee or registered owner, of the same aggregate principal amount, bearing interest at the
same rate and maturing on the same date; subject to reimbursement for any tax, fee or
governmental charge required to be paid with respect to any such transfer or exchange.
9
The Bonds have been designated by the City as “qualified tax-exempt obligations”
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986.
The City and the Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment as herein provided and for all other purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary.
Notwithstanding any other provisions of this Bond, so long as this Bond is registered in
the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any
other nominee of The Depository Trust Company or other securities depository, the Registrar
shall pay all principal of and interest on this Bond, and shall give all notices with respect to this
Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of
The Depository Trust Company or other securities depository as agreed to by the City.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be done,
to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order
to make it a valid and binding general obligation of the City in accordance with its terms, have
been done, do exist, have happened and have been performed as so required; that prior to the
issuance hereof the City has levied or agreed to levy special assessments on property specially
benefited by the improvements financed by the Bonds, collectible in the years and amounts
required to produce sums not less than five percent in excess of the principal of and interest on
the Bonds as such principal and interest respectively become due, and has appropriated such
special assessments to the Revenue Account (the Revenue Account) of its Permanent
Improvement Revolving Fund established by the Resolution; that, on or before each date the City
is obligated to pay principal of or interest on the Bonds, the City will transfer from its Revenue
Account to a separate General Obligation Permanent Improvement Revolving Fund Bonds,
Series 2008B Debt Service Account an amount sufficient for the payment of such principal and
interest on such date; that if necessary for payment of principal and interest, ad valorem taxes are
required to be levied upon all taxable property in the City, without limitation as to rate or
amount; and that the issuance of this Bond, together with all other indebtedness of the City
outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause
the indebtedness of the City to exceed any constitutional, charter or statutory limitation of
indebtedness.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Resolution until the Certificate of Authentication hereon shall have
been executed by the Registrar by manual signature of one of its authorized representatives.
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IN WITNESS WHEREOF, the City has caused this Bond to be executed on its behalf by
the facsimile signatures of its Mayor and City Manager.
CITY OF EDEN PRAIRIE, MINNESOTA
(facsimile signature – Mayor) (facsimile signature – City Manager)
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
Date of Authentication: __________________ WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Registrar
By ______________________________
Authorized Representative
____________
The following abbreviations, when used in the inscription on the face of this Bond, shall be
construed as though they were written out in full according to the applicable laws or regulations:
TEN COM - as tenants in common UTMA ................... as Custodian for .……..............
(Cust) (Minor)
TEN ENT - as tenants by the entireties under Uniform Transfers to Minors Act ..………...
(State)
JT TEN - as joint tenants with right of survivorship and not as tenants in common
Additional abbreviations may also be used.
__________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto _________________
the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint
_________________ attorney to transfer the said Bond on the books kept for registration of the
within Bond, with full power of substitution in the premises.
Dated: __________________ ________________________________________________
NOTICE: The assignor's signature to this assignment must
correspond with the name as it appears upon the face of the
within Bond in every particular, without alteration or
enlargement or any change whatsoever.
11
Signature Guaranteed: ___________________________________
Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements
of the Registrar, which requirements include membership or participation in STAMP or such
other "signature guaranty program" as may be determined by the Registrar in addition to or in
substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE: ____________________
[end of bond form]
SECTION 3. USE OF PROCEEDS. The proceeds of the Bonds received by the City, exclusive
of unused discount, pre-issuance accrued interest and capitalized interest, if any, shall be
deposited in the Construction Fund established in Section 4 hereof and used to pay costs of the
Projects or such other Improvements as the Council may designate.
SECTION 4. CONSTRUCTION FUND. The City hereby establishes the Permanent
Improvement Revolving Fund Series 2008B Construction Fund (the Construction Fund) as a
separate bookkeeping account on its books and records. There shall be deposited into the
Construction Fund, when and as received, the amount specified in Section 3 hereof. There shall
be established a separate account within the Construction Fund to record expenditures for each
Improvement. The moneys in the Construction Fund will be disbursed by the City, in
accordance with this Resolution and the City’s normal procedures, to pay (or reimburse the City
for) the costs of the Projects, including also the issuance costs of the Bonds. At such time as the
Projects are completed the City shall transfer any remaining balance in the Construction Fund as
provided herein.
SECTION 5. GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING
FUND BONDS, SERIES 2008B BOND FUND. So long as any of the Bonds are outstanding
and any principal of or interest thereon unpaid, the City shall maintain a separate debt service
fund on its official books and records to be known as the General Obligation Permanent
Improvement Revolving Fund Bonds, Series 2008B Bond Fund (the Bond Fund) within the Debt
Service Account of the Permanent Improvement Revolving Fund (as described herein, the Debt
Service Account), and the principal of and interest on the Bonds shall be payable from the Bond
Fund. The City irrevocably appropriates to the Bond Fund (a) any amount received from the
Purchaser in excess of the amount required by Section 3 hereof to be deposited in the
Construction Fund; (b) all moneys transferred with respect to the Bonds from other accounts
within the Permanent Improvement Revolving Fund to the Debt Service Account in accordance
with this Resolution; and (c) all other moneys as shall be appropriated by the City Council to the
Bond Fund from time to time. On the business day preceding each date on which principal of or
interest on the Bonds are to be paid by the City in accordance with this resolution, the City
Manager shall, without further direction by the Council, transfer from the Debt Service Account
in the Permanent Improvement Revolving Fund to the Bond Fund an amount sufficient to pay
such principal and interest. If the aggregate balance in the Bond Fund is at any time insufficient
to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be
made from any fund of the City which is available for that purpose, subject to reimbursement
12
from the Permanent Improvement Revolving Fund when the balance therein is sufficient, and the
City Council covenants and agrees that it will each year levy a sufficient amount of ad valorem
taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any
constitutional or statutory limitation.
SECTION 6. SPECIAL ASSESSMENTS. The City hereby covenants and agrees that, for the
payment of the cost of the Projects, the City has done or will do and perform all acts and things
necessary for the final and valid levy of special assessments in an amount not less than 20% of
the cost of each of the improvements financed by the Bonds. The City estimates it will levy
special assessments in the aggregate principal amount of $___________. It is estimated that the
principal and interest on such special assessments will be levied and collected in the years and
amounts shown on Exhibit A attached hereto. In the event any such assessment shall at any time
be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in
any action or proceeding taken or to be taken by the City or by the City Council or by any of the
officers or employees of the City, either in the making of such assessment or in the performance
of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do
all such further things and take all such further proceedings as shall be required by law to make
such assessment a valid and binding lien upon said property. The collections of the special
assessments shall be deposited, as received, into the Revenue Account.
SECTION 7. PLEDGE OF TAXING POWERS. For the prompt and full payment of the
principal of and interest on the Bonds as such payments respectively come due, the full faith,
credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged.
However, the City presently estimates that the special assessments described herein, together
with any funds to be appropriated by the City to the Bond Fund, will be at least five percent in
excess of the amounts needed to meet when due the principal and interest payments on the Bonds
and therefore no ad valorem taxes are required to be levied at this time.
SECTION 8. DEFEASANCE. When all of the Bonds have been discharged as provided in this
Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the
Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are
due on any date by depositing with the Registrar on or before that date a sum sufficient for the
payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be
discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with
interest accrued from the due date to the date of such deposit. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with the
Registrar or with a bank qualified by law to act as an escrow agent for this purpose, cash or
securities which are authorized by law to be so deposited for such purpose, bearing interest
payable at such times and at such rates and maturing or callable at the holder’s option on such
dates as shall be required to pay all principal and interest to become due thereon to maturity or, if
notice of redemption as herein required has been irrevocably provided for, to an earlier
designated redemption date. Provided, however, that if such deposit is made more than ninety
days before the maturity date or specified redemption date of the Bonds to be discharged, the
City shall have received a written opinion of Bond Counsel to the effect that such deposit does
not adversely affect the exemption of interest on any Bonds from federal income taxation and a
written report of an accountant or investment banking firm verifying that the deposit is sufficient
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to pay when due all of the principal and interest on the Bonds to be discharged on and before
their maturity dates or earlier designated redemption date.
SECTION 9. TAX COVENANTS; ARBITRAGE MATTERS AND CONTINUING
DISCLOSURE.
9.01. General Tax Covenant. The City agrees with the registered owners from time to
time of the Bonds that it will not take, or permit to be taken by any of its officers, employees or
agents, any action that would cause interest on the Bonds to become includable in gross income
of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable
Treasury Regulations (the Regulations), and agrees to take any and all actions within its powers
to ensure that the interest on the Bonds will not become includable in gross income of the
recipient under the Code and the Regulations. All proceeds of the Bonds deposited in the
Construction Fund will be expended for payment of the costs of the Project, except that any
excess over that required for the Project may be expended as provided herein. The
Improvements are and will be owned and maintained by the City and available for use by
members of the general public on a substantially equal basis. The City shall not enter into any
lease, management contract, use agreement, capacity agreement or other agreement with any
non-governmental person relating to the use of the Improvements, or any portion thereof, or
security for the payment of the Bonds which might cause the Bonds to be considered “private
activity bonds” or “private loan bonds” pursuant to Section 141 of the Code.
9.02. Arbitrage Certification. The Mayor and City Manager being the officers of the
City charged with the responsibility for issuing the Bonds pursuant to this Resolution, are
authorized and directed to execute and deliver to the Purchaser a certificate in accordance with
Section 148 of the Code, and applicable Regulations, stating the facts, estimates and
circumstances in existence on the date of issue and delivery of the Bonds which make it
reasonable to expect that the proceeds of the Bonds will not be used in a manner that would
cause the Bonds to be “arbitrage bonds” within the meaning of the Code and Regulations.
9.03. Arbitrage Rebate Exemption. (a) It is hereby found that the City has general
taxing powers, that no Bond is a “private activity bond” within the meaning of Section 141 of the
Code, that 95% or more of the net proceeds of the Bond are to be used for local governmental
activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than
private activity bonds) issued by the City and all subordinate entities thereof during the year
2008 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of
Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage
rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code.
(b) Notwithstanding the provisions of paragraph (a) of this Section 9.03, if the arbitrage
rebate provisions of Section 148(f) of the Code applies to the Bond, the City hereby covenants
and agrees to make the determinations, retain records and rebate to the United States the amounts
at the times and in the manner required by said Section 148(f) and applicable Regulations.
9.04. Qualified Tax-Exempt Obligations. The Council hereby designates the Bonds as
“qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code relating to the
disallowance of interest expense for financial institutions, and hereby finds that the reasonably
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anticipated amount of tax-exempt obligations which are not private activity bonds (not treating
qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for the purpose
of this representation) which will be issued by the City and all subordinate entities during
calendar year 2008 does not exceed $10,000,000.
9.05. Reimbursement. The City certifies that the proceeds of the Bonds will not be used
by the City to reimburse itself for any expenditure with respect to the Projects which the City
paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect
to such prior expenditures, the City shall have made a declaration of official intent which
complies with the provisions of Section 1.150-2 of the Regulations; provided that this
certification shall not apply (i) with respect to certain de minimis expenditures, if any, with
respect to the Projects meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or
(ii) with respect to “preliminary expenditures” for the Projects as defined in Section 1.150-2(f)(2)
of the Regulations, including engineering or architectural expenses and similar preparatory
expenses, which in the aggregate do not exceed 20% of the “issue price” of the Bonds.
9.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public
availability of certain information relating to the Bonds and the security therefor and to permit
the Purchaser and other participating underwriters in the primary offering of the Bonds to
comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities
Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect
and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds,
the City hereby makes the following covenants and agreements for the benefit of the Owners (as
hereinafter defined) from time to time of the outstanding Bonds. The City is the only obligated
person in respect of the Bonds within the meaning of the Rule for purposes of identifying the
entities in respect of which continuing disclosure must be made. The City has complied in all
material respects with any undertaking previously entered into by it under the Rule. If the City
fails to comply with any provisions of this section, any person aggrieved thereby, including the
Owners of any outstanding Bonds, may take whatever action at law or in equity may appear
necessary or appropriate to enforce performance and observance of any agreement or covenant
contained in this section, including an action for a writ of mandamus or specific performance.
Direct, indirect, consequential and punitive damages shall not be recoverable for any default
hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained
herein, in no event shall a default under this section constitute a default under the Bonds or under
any other provision of this resolution. As used in this section, Owner or Bondowner means, in
respect of a Bond, the registered owner or owners thereof appearing in the bond register
maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such
Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and
substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in
respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or
consent with respect to, or to dispose of ownership of, such Bond (including persons or entities
holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the
owner of the Bond for federal income tax purposes.
(b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection
(c) hereof, either directly or indirectly through an agent designated by the City, the following
information at the following times:
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(1) on or before 365 days after the end of each fiscal year of the City, commencing with
the fiscal year ending December 31, 2008, the following financial information and
operating data in respect of the City (the Disclosure Information):
(A) the audited financial statements of the City for such fiscal year, containing
balance sheets as of the end of such fiscal year and a statement of operations,
changes in fund balances and cash flows for the fiscal year then ended, showing
in comparative form such figures for the preceding fiscal year of the City,
prepared in accordance with generally accepted accounting principles
promulgated by the Financial Accounting Standards Board as modified in
accordance with the governmental accounting standards promulgated by the
Governmental Accounting Standards Board or as otherwise provided under
Minnesota law, as in effect from time to time, or, if and to the extent such
financial statements have not been prepared in accordance with such generally
accepted accounting principles for reasons beyond the reasonable control of the
City, noting the discrepancies therefrom and the effect thereof, and certified as
to accuracy and completeness in all material respects by the fiscal officer of the
City; and
(B) to the extent not included in the financial statements referred to in paragraph (A)
hereof, an update of the operating and financial data of the type of information
contained in the Official Statement under the captions ECONOMIC AND
FINANCIAL INFORMATION; SUMMARY OF DEBT AND DEBT
STATISTICS; GENERAL INFORMATION- “Major Employers” and
“Building Permits.”
Notwithstanding the foregoing paragraph, if the audited financial statements are not available by
the date specified, the City shall provide on or before such date unaudited financial statements in
the format required for the audited financial statements as part of the Disclosure Information and,
within 10 days after the receipt thereof, the City shall provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it is updated as
required hereby, from other documents, including official statements, which have been submitted
to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the
document incorporated by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure
Information each document so incorporated by reference. If any part of the Disclosure
Information can no longer be generated because the operations of the City have materially
changed or been discontinued, such Disclosure Information need no longer be provided if the
City includes in the Disclosure Information a statement to such effect; provided, however, if such
operations have been replaced by other City operations in respect of which data is not included in
the Disclosure Information and the City determines that certain specified data regarding such
replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from
and after such determination, the Disclosure Information shall include such additional specified
data regarding the replacement operations. If the Disclosure Information is changed or this
section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall
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include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an
explanation of the reasons for the amendment and the effect of any change in the type of
financial information or operating data provided.
(2) In a timely manner, notice of the occurrence of any of the following events which is
a Material Fact (as hereinafter defined):
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on debt service reserves reflecting financial difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions or events affecting the tax-exempt status of the security;
(G) Modifications to rights of security holders;
(H) Bond calls;
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the securities;
and
(K) Rating changes.
As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a
reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a
Bond or, if not disclosed, would significantly alter the total information otherwise available to an
investor from the Official Statement, information disclosed hereunder or information generally
available to the public. Notwithstanding the foregoing sentence, a Material Fact is also an event
that would be deemed material for purposes of the purchase, holding or sale of a Bond within the
meaning of applicable federal securities laws, as interpreted at the time of discovery of the
occurrence of the event.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the City to provide the Disclosure Information required under
paragraph (b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this section pursuant to subsection (d),
together with a copy of such amendment or supplement and any explanation
provided by the City under subsection (d)(2);
(C) the termination of the obligations of the City under this section pursuant to
subsection (d);
(D) any change in the accounting principles pursuant to which the financial
statements constituting a portion of the Disclosure Information are prepared;
and
(E) any change in the fiscal year of the City.
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(c) Manner of Disclosure. The City agrees to make available the information described in
subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as
appropriate:
(1) the information described in paragraph (1) of subsection (b), to each then nationally
recognized municipal securities information repository under the Rule and to any
state information depository then designated or operated by the State of Minnesota
as contemplated by the Rule (the State Depository), if any;
(2) the information described in paragraphs (2) and (3) of subsection (b), to the
Municipal Securities Rulemaking Board and to the State Depository, if any; and
(3) the information described in subsection (b), to any rating agency then maintaining a
rating of the Bonds at the request of the City and, at the expense of such Bondowner,
to any Bondowner who requests in writing such information, at the time of
transmission under paragraphs (1) or (2) of this subsection (c), as the case may be,
or, if such information is transmitted with a subsequent time of release, at the time
such information is to be released.
(d) Term; Amendments; Interpretation.
(1) The covenants of the City in this section shall remain in effect so long as any Bonds
are outstanding. Notwithstanding the preceding sentence, however, the obligations
of the City under this section shall terminate and be without further effect as of any
date on which the City delivers to the Registrar an opinion of Bond Counsel to the
effect that, because of legislative action or final judicial or administrative actions or
proceedings, the failure of the City to comply with the requirements of this section
will not cause participating underwriters in the primary offering of the Bonds to be
in violation of the Rule or other applicable requirements of the Securities Exchange
Act of 1934, as amended, or any statutes or laws successory thereto or amendatory
thereof.
(2) This section (and the form and requirements of the Disclosure Information) may be
amended or supplemented by the City from time to time, without notice to (except as
provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a
resolution of this Council filed in the office of the recording officer of the City
accompanied by an opinion of Bond Counsel, who may rely on certificates of the
City and others and the opinion may be subject to customary qualifications, to the
effect that: (i) such amendment or supplement (a) is made in connection with a
change in circumstances that arises from a change in law or regulation or a change in
the identity, nature or status of the City or the type of operations conducted by the
City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5)
of the Rule; (ii) this section as so amended or supplemented would have complied
with the requirements of paragraph (b)(5) of the Rule at the time of the primary
offering of the Bonds, giving effect to any change in circumstances applicable under
clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the
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amendment or supplement was in effect at the time of the primary offering; and (iii)
such amendment or supplement does not materially impair the interests of the
Bondowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide,
contemporaneously with the effectiveness of such amendment, an explanation of the
reasons for the amendment and the effect, if any, of the change in the type of
financial information or operating data being provided hereunder.
(3) This section is entered into to comply with the continuing disclosure provisions of
the Rule and should be construed so as to satisfy the requirements of paragraph
(b)(5) of the Rule.
SECTION 10. CERTIFICATION OF PROCEEDINGS.
10.01. Registration of Bonds. The City Manager is hereby authorized and directed to file
a certified copy of this resolution with the County Auditor of Hennepin County, together with
such additional information as the County Auditor may require, and to obtain from the County
Auditor a certificate that the Bonds have been duly entered upon the County Auditor’s bond
register.
10.02. Authentication of Transcript. The officers of the City and the County Auditor are
hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney
LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds and
such other affidavits, certificates and information as may be required to show the facts relating to
the legality and marketability of the Bonds, as the same appear from the books and records in
their custody and control or as otherwise known to them, and all such certified copies, affidavits
and certificates, including any heretofore furnished, shall be deemed representations of the City
as to the correctness of all statements contained therein.
10.03. Official Statement. The Official Statement relating to the Bonds, dated
_____________, 2008, relating to the Bonds prepared and distributed by Northland Securities,
Inc., the financial advisor for the City, is hereby approved. Northland Securities, Inc., is hereby
authorized on behalf of the City to prepare and distribute to the Purchaser within seven business
days from the date hereof, a supplement to the Official Statement listing the offering price, the
interest rates, selling compensation, delivery date, the underwriters and such other information
relating to the Bonds required to be included in the Official Statement by Rule l5c2-12 adopted
by the Securities and Exchange Commission (the SEC) under the Securities Exchange Act of
1934. The officers of the City are hereby authorized and directed to execute such certificates as
may be appropriate concerning the accuracy, completeness and sufficiency of the Official
Statement.
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Upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon the Resolution was declared duly passed and adopted.
CITY COUNCIL AGENDA
SECTION: Report of the City Manager
DATE:
October 7, 2009
DEPARTMENT/DIVISION:
Sue Kotchevar, Office of the
City Manager
ITEM DESCRIPTION:
Approve Custody Agreement with US
Bank National Association
ITEM NO.: XIV.B.3.
Requested Action
Move to: Approve Custody Agreement with US Bank National Association
Synopsis
This agreement appoints US Bank National Association to provide custody services for the City
investments. Currently, investments are usually held with the broker where the investment was
purchased either with Dain Rauscher or Wells Fargo. The estimated annual cost is $5,500
annually. This new arrangement has the following advantages:
• Easier for the City to obtain bids from various brokers since all investments will be held in
one location
• Investment costs will be more transparent
• Provides the highest level of security for City investments
• Improved consolidated reporting for investments which will increase the efficiency of
Finance staff.
Attachments
Custody Agreement
Addendum to Agreement
CUSTODY AGREEMENT
This AGREEMENT made as of the day of , 200 by and
between U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the
laws of the United States of America ("Custodian") and
("Customer") a
organized under the laws of the State or Commonwealth of
In consideration of the premises, undertaking and covenants herein, the parties agree as follows:
1. Appointment and Acceptance. Customer hereby appoints Custodian as its agent to provide custody
and other services in connection with securities, cash and other property delivered from time to time to
Custodian hereunder by, or at the direction of, Customer, and income, distributions and payments
received by Custodian with respect thereto (collectively the "Assets"); and Custodian hereby agrees to act
in such capacity, and perform such services, and hold the Assets in a custody account established in the
name of Customer (the "Account"), upon the terms and conditions set forth below. For purposes of this
Agreement, all references contained herein to actions, directions and responsibilities (other than the
obligations set forth in Sections 12 and 14 below) of Customer shall include, apply to and be binding upon
the Customer's agents, including any investment manager or advisor, appointed and authorized by
Customer to direct Custodian or otherwise take actions on behalf of Customer in connection with
Custodian's services and responsibilities hereunder. Customer shall provide written notice to Custodian of
the identity of all such appointed agents and the scope of their authority to act hereunder. Customer shall
be responsible for providing to each such agent a copy of this Agreement and all written policies and
procedures of Custodian governing its performance of services hereunder that Customer shall receive
from time to time. In the event that Customer requires Custodian to establish one or more sub-accounts
within the Account under this Agreement ("sub-Accounts"), Customer shall identify such sub-Accounts on
a separate Exhibit A attached hereto, and which may be amended from time to time. In such event,
Customer shall deposit or direct the transfer of Assets to or among the separate sub-Accounts. Further,
for such situations, the term "Account" as used in this Agreement shall refer to one or all of the sub-
Accounts established by Customer, as the context of this Agreement shall require.
2. Asset Delivery, Transfer, Custody and Safekeeping.
2.1. Customer will from time to time deliver (or cause to be delivered) Assets to Custodian, which
Custodian shall receive and accept for the Account upon appropriate directions from the Customer. All
transactions involving Assets shall be recorded in the Account.
2.2. Upon receipt of appropriate directions, Custodian will release and return Assets to Customer,
Customer's Depository (as that term is defined in Section 3.3 below) account or accounts, or otherwise
deliver Assets to such location or third party, as such directions may indicate, provided that, in connection
therewith it is the sole responsibility of Customer to provide any transfer documentation as may be
required by the Depository or third party recipient. Custodian shall have no power or authority to assign,
hypothecate, pledge or otherwise dispose of any Assets, except as provided herein or pursuant to
appropriate directions.
2.3. Custodian shall furnish Customer, as part of the services for which Custodian charges its basic fee
hereunder, with periodic Account statements (not less frequently than annually) reflecting all Asset
transactions in the Account during the reporting period and ending Asset holdings.
2.4. Custodian shall forward to Customer, or Customer's designated agent identified in Section 17.10,
below (or as identified in a separate written designation by Customer that is received by Custodian), all
information it receives with respect to any of the Assets concerning redemption rights that are exercisable
at Customer's option, tender or exchange offers, class action lawsuits and other special matters or
shareholder rights. Custodian shall follow Customer's or Customer's designated agent's, as applicable,
written directions with respect thereto consistent with Custodian's governing policies and procedures and
in the absence of such directions Custodian shall take no action. Custodian shall forward to Customer or
Customer's designated agent, as applicable, all proxy material it receives with respect to securities
included among the Assets. The registered holder of the securities shall execute proxies so forwarded, if
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registered in the name of the Custodian or its nominee, but without indicating the manner in which such
proxies are to be voted. Exception: Customer expressly acknowledges that Custodian will not forward so-
called "mini-tenders" to Customer or its designated agent, as applicable. Mini-tenders are tender offers for
a small amount of the outstanding securities made on "target" company, generally with an offer price at or
below market value. For equity issues, unless a tender offer is made for 5% or greater of the outstanding
issue, and therefore subject to Securities Exchange Commission ("SEC") review, the tender offer will not
be forwarded by Custodian. For debt issues, the actual terms of the offer will serve as the notification
parameters. Therefore, no tender offer will be forwarded by Custodian for a debt issue if: (a) it is not
registered with the SEC, (b) it has a "first received, first buy" basis with no withdrawal privilege and
includes a guarantee of delivery clause, or (c) the offer includes the statement that "the purchase price
includes all accrued interest on the note and has been determined in the sole discretion of the buyer and
may be more than or less than the fair market value of the notes" or similar language.
2.5. Absent specific investment directions to the contrary from Customer, Custodian is hereby
authorized and directed by Customer to hold all cash and all checks and drafts (when collected funds are
received) in a First American Funds money market fund, identified in Section 17.11, below. Customer
acknowledges receipt of the current prospectus for the applicable, designated money market fund to be
held in this Account. Customer also understands and acknowledges the following information about the
First American Funds: The First American family of funds (the "First American Funds") are offered
through the funds' distributor identified in the current prospectuses for the funds. U.S. Bank National
Association ("U.S. Bank") or an affiliate of U.S. Bank serves as the funds' investment advisor, custodian,
distributor, administrator and other service provider as disclosed in the prospectuses for the funds.
Compensation paid to U.S. Bank and its affiliates by the First American Funds as well as other fees and
expenses of the funds are detailed in the prospectuses. Mutual funds, including the First American
Funds, are not guaranteed by, or deposits of, any bank including U.S. Bank, nor are such funds insured by
the FDIC or any other agency. Investments in mutual funds involve risks, including the possible loss of
principal. This authorization and direction shall continue in effect with respect to the designated fund
should the fund be merged with or into another money market fund.
2.6. Customer hereby authorizes and approves Custodian's performance of its services and duties
hereunder consistent with the terms and conditions of the Custodian's duly adopted policies and
procedures, as established and modified from time to time, related to the subject matter hereof.
2.7. If any of the Assets received and held by Custodian hereunder shall be "plan assets" with respect
to any "employee benefit plan" (as those terms are defined in Section 3 of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), the Custodian shall not be deemed to be, and shall
not exercise any discretionary powers or control over such "plan" or "plan assets" so as to be a fiduciary
with respect to the plan. Furthermore, Customer shall notify Custodian in writing whenever any Assets do
constitute such "plan asset," and thereafter, all subcontracts, agreements or other arrangements between
Custodian and any subsidiary or affiliate thereof for services or products paid for from any assets of the
said plan and utilized in the performance of Custodian's duties hereunder shall be subject to the advance
approval of Customer.
3. Powers of Custodian. In the performance of its duties hereunder, Custodian shall have the following
powers:
3.1. To register any of the Assets in the name of Customer or in the Custodian's name or in the name
of a nominee of Custodian or in the name of the Custodian's agent bank or to hold any of the Assets in
unregistered form or in such form as will pass title by delivery, provided that such Assets shall at all times
be recorded in Customer's Account hereunder as one of the Assets. In consideration of Custodian's
registration of any securities or other property in the name of Custodian or its nominee or agent, Customer
agrees to pay on demand to Custodian or to Custodian's nominee or agent the amount of any loss or
liability for Stockholders' assessments, or otherwise, claimed or asserted against Custodian or
Custodian's nominee or agent by reason of such registration.
3.2. To make, execute, acknowledge and deliver any and all documents of transfer and conveyance
and any or all other instruments that may be necessary or appropriate to carry out the duties described
and powers granted herein.
3.3. To maintain qualifying Assets in any registered clearing agency or in a Federal Reserve Bank
(collectively a "Depository"), as Custodian may select, and to permit such deposited Assets to be
registered in the name of Custodian or Custodian's agent or nominee on the records of such Federal
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Reserve Bank or such registered clearing agency or the nominee of either, and to employ and use
securities depositories, clearing agencies, clearance systems, sub- Custodians or agents located outside
the United States in connection with transactions involving foreign securities.
3.4. To employ agents and to delegate duties to them as it sees fit and to employ or consult with
experts, advisors and legal counsel (who may be employed also by Customer) and to rely on information
and advice received from such agents, experts, advisors, and legal counsel.
3.5. To perform any and all other ministerial acts deemed by Custodian necessary or appropriate to
the proper discharge of its duties hereunder.
3.6. To hold uninvested reasonable amounts of cash whenever it is deemed advisable to do so to
facilitate disbursements or for other operational reasons, and to deposit the same, with or without interest,
in the commercial or savings departments of the Custodian serving hereunder or of any other bank, trust
company or other financial institution including those affiliated with the Custodian, notwithstanding the
Custodian's or other entity's receipt of "float" from such uninvested cash.
4. Purchases. Upon availability of sufficient funds and receipt of appropriate directions from Customer,
Custodian shall pay for and receive Assets purchased for the Account, payment for which is to be made in
the amount specified in such instructions and only upon receipt by Custodian of the Assets in satisfactory
form for transfer.
5. Sales. Upon receipt of appropriate directions from Customer, Custodian will deliver Assets held by it
as Custodian hereunder and sold by or for Customer against payment to Custodian of the amount
specified in such directions in accordance with the then current securities industry practices and in form
satisfactory to Custodian. Customer acknowledges that the current securities industry practice is delivery
of physical securities against later payment on delivery date. Custodian agrees to use its best efforts to
obtain payment therefore during the same business day, but Customer confirms its sole assumption of all
risks of payment for such deliveries. Custodian may accept checks, whether certified or not, in payment
for securities delivered on Customer's direction, and Customer assumes sole responsibility for the risks of
collectability of such checks.
6. Settlements.
6.1. Custodian shall provide Customer with settlement of all purchases and sales of Assets in accordance
with Custodian's then prevailing settlement policies provided that (a) appropriate directions for purchases
and sales are received by Custodian in accordance with Custodian's then current published instruction
deadline schedule, and (b) Custodian has all other information, funds and/or Assets necessary to
complete the transaction.
6.2. Custodian shall not be liable or responsible for or on account of any act or omission of any broker or
other agent designated by Customer to purchase or sell securities for the Account of Customer.
7. Corporate Actions. In connection with any mandatory conversion of Asset securities pursuant to their
terms, reorganization, recapitalization, redemption in kind, consolidation, or other exchange transaction
that does not require or permit approval by the owner of the affected Assets, Custodian will tender or
exchange securities held for other securities, for other securities and cash, or for cash alone.
8. Collections. Custodian shall collect all income, principal and other distributions due and payable on
securities held either by Custodian or a Depository but shall be under no obligation or duty to take action
to effect collection of any amount if the Assets upon which such payment is due are in default, or if
payment is refused after due demand and presentation. Custodian shall have no responsibility to notify
Customer in the event of such default or refusal to pay, but if Custodian receives notice of default or
refusal to pay from an issuer or transfer agent, Custodian shall so advise Customer. Collections of
monies in foreign currency, to the extent possible, are to be converted into United States dollars at
customary rates through customary banking channels, including Custodian's own banking facilities, and in
accordance with Custodian's prevailing policies for foreign funds repatriation. All risk and expense
incident to such foreign collection and conversion is the responsibility of the Account and Custodian shall
have no responsibility for fluctuations in exchange rates affecting such collections or conversion.
9. No Discretionary Authority; Standard of Care. Customer and Custodian acknowledge that, except
to the extent set forth in any separate instrument signed by the parties with respect to this Agreement,
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Custodian's duties hereunder do not include any discretionary authority, control or responsibility with
respect to the management or disposition of any Asset; that Custodian has no authority or responsibility to
render investment advice with respect to any Asset; and that Custodian is not a fiduciary with respect to
Customer. In addition, it is agreed that:
9.1. Custodian shall have no duty to make any evaluation or to advise anyone of the suitability or propriety
of action or proposed action of Customer in any particular transaction involving an Asset or the suitability
or propriety of retaining any particular investment as an Asset. Custodian shall have no duty or authority
to review, question, approve or make inquiries as to any investment instructions given pursuant hereto.
Custodian shall be under no duty or obligation to review the securities or other property held in the
Account with respect to prudence or diversification.
9.2. Custodian shall not be liable for any loss or diminution of Assets by reason of investment experience
or for its actions taken in reliance upon a direction or other instruction from Customer or Customer's
agent.
9.3. Custodian shall have no duty or responsibility to monitor or otherwise investigate the actions or
omissions of Customer.
9.4 . Custodian shall only be responsible for the performance of such duties as are expressly set forth
herein or in directions or other instructions of Customer or Customer's agent which are not contrary to the
provisions of this Agreement. Custodian shall exercise reasonable care in the performance of its
services hereunder. In no event shall Custodian be liable for indirect or consequential damages.
Custodian shall not be responsible or liable for any failure or delay in performance of its obligations under
this Agreement arising out of or caused, directly or indirectly, by directions or other instructions, actions or
omissions of Customer or by circumstances beyond Custodian's reasonable control, including, without
limitation, loss or malfunctions of utility, transportation, computer (hardware and software) or
communication service; nor shall any such failure or delay give Customer the right to terminate this
Agreement, except as provided in section 15 of this Agreement.
10. Books, Records and Accounts.
10.1. Custodian will make and maintain proper books of account and complete records of all Assets and
transactions in the Account maintained by Custodian hereunder on behalf of Customer. Custodian will
preserve for the periods prescribed by applicable federal statute or regulation all records required to be
maintained.
10.2. On at least four (4) business days' notice, Custodian will make available to and permit inspection
during Custodian's regular business hours by Customer and its auditors of all books, records, and
accounts retained by Custodian (or, to the extent practicable, its agents) in connection with its duties
hereunder on behalf of Customer.
11. Instructions and Directions.
11.1. Custodian shall be deemed to have received appropriate "instructions" or "directions" upon receipt of
written instructions or directions, or in the case of cash movement, written or oral instructions or directions,
(a) signed or given by any person(s) whose name(s) and signature(s) are listed on the most recent
certificate delivered by Customer to Custodian which lists those persons authorized to give orders,
corrections and instructions in the name of and on behalf of the Customer or (b) signed or given by any
other person(s) duly authorized by Customer to give instructions or directions to Custodian hereunder or
whom Custodian reasonably believes to be so authorized (such as an investment adviser or other agent
designated by Customer, for example).
11.2. Appropriate instructions or directions shall include instructions or directions sent to Custodian or its
agent by letter, memorandum, telegram, cable, telex, facsimile, video (CRT) terminal, internet e-mail or
other "on-line" system, or similar means of communication, or in the case of cash movement, given orally
over the telephone or in person. Customer assumes full responsibility for the security of electronically
transmitted communications, whether sent by Customer or Custodian.
11.3. In the event that Custodian is directed to deliver Assets to any party other than Customer or
Customer's agent, appropriate directions shall include, and Customer shall supply, customary transfer
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documentation as required by such party, and, to the extent that such documentation has not been
supplied, Custodian shall not be deemed to have received appropriate directions.
12. Compensation; Security.
12.1. Customer shall pay to Custodian fees for its services under this Agreement and shall reimburse
Custodian for costs incurred by it hereunder as set forth in Custodian's then current applicable fee
schedule or such other fee arrangement as Custodian and Customer may otherwise agree in writing.
12.2. If any advance of funds is made by Custodian on behalf of Customer to purchase, or to make
payment on or against delivery of securities or there shall arise for whatever reason an overdraft in
Customer's account, or if Customer is for any other reason indebted to Custodian, including, but not
limited to, any advance of immediately available funds to Customer with respect to payments to be
received by Custodian in next-day funds (which Customer acknowledges Customer is liable to repay if
Custodian does not receive final payment), Customer agrees to repay Custodian on demand the amount
of the advance, overdraft or other indebtedness, reserve requirements and accrued interest at a rate per
annum (based on a 360-day year for the actual number of days involved) equal to the Federal Funds
effective rate in effect from time to time.
12.3. In the event of an advance of funds by Custodian, or if any overdraft is created by Account
transactions, Custodian may directly charge the Account and receive such payment therefrom. In the
event that a compensation payment due Custodian is past due by more than thirty (30) days, such amount
may also be charged to the Account and Custodian may receive such payment therefrom. To secure
such payments obligations, Customer does hereby grant to Custodian a security interest in all Assets held
in the Account from time to time.
13. Customer Responsibility. Customer shall be responsible for the review of all reports, accountings
and other statements provided thereto by the Custodian, and shall within ninety (90) days following receipt
thereof notify the Custodian of any mistakes, defects or irregularities contained or identified therein, after
which time all such matters shall be presumed to be ratified, approved and correct and shall not provide
any basis for claim or liability against the Custodian.
14. Indemnification. Customer hereby agrees to fully and promptly indemnify Custodian and its
affiliates, officers, directors, employees and agents (each an "Indemnified Party") and hold each
Indemnified Party harmless from and against any cost, losses, claims, liabilities, fines, penalties, damages
and expenses (including reasonable attorneys' and accountants' fees (collectively, a "Claim") arising out of
(i) Customer's actions or omissions or (ii) Custodian's action taken or omitted hereunder in reliance upon
Customer's directions or instructions, or upon any information, order, indenture, stock certificate, power of
attorney, assignment, affidavit or other instrument delivered hereunder to Custodian, reasonably believed
by Custodian to be genuine or bearing the signature of a person or persons authorized by Customer to
sign, countersign or execute the same; provided, that Customer shall not indemnify an Indemnified Party
for any Claim arising from the Indemnified Party's judicially determined willful misfeasance, bad faith or
gross negligence in the performance of its duties under this Agreement. Custodian hereby agrees to
indemnify Customer and its Indemnified Parties (i.e., the Customer and its controlling person, officers,
directors, employee and agents) and hold each of them harmless from and against any and all Claims
arising out of (i) Custodian's breach of this Agreement, willful misfeasance, bad faith or gross negligence
in the performance of its duties under this Agreement, or (ii) any loss of Assets, including theft or
destruction thereof but expressly excluding investment losses or other diminution of Assets resulting from
the Custodian's proper performance of its duties hereunder; provided, that Custodian shall not indemnify
an Indemnified Party for any Claim arising from the Indemnified Party's breach of this Agreement, willful
misfeasance, bad faith or gross negligence with respect to its duties and responsibilities under this
Agreement. This section 14 shall survive the termination of this Agreement.
15. Termination.
15.1. This Agreement will remain in effect until terminated by either party giving written notice thirty (30)
days in advance of the termination date.
15.2. Upon termination of this Agreement, Custodian shall follow such reasonable Customer instructions
concerning the transfer of Assets' custody and records; provided, that (a) Custodian shall have no liability
for shipping and insurance costs associated therewith; (b) Custodian shall not be required to make any
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such delivery or payment until full payment shall have been made by Customer of all liabilities constituting
a charge on or against Custodian and until full payment shall have been made to Custodian of all its
compensation, costs, including special termination costs, if any, and expenses hereunder; and (c)
Custodian shall have been reimbursed for any advances of monies or securities made hereunder to
Customer. If any Assets remain in the Account, Customer acknowledges and agrees that Custodian may
designate Customer as successor Custodian hereunder and deliver the same directly to Customer.
15.3. Upon termination of this Agreement, all obligations of the parties to each other hereunder shall
cease, except that all indemnification provisions herein shall survive with respect to any Claims arising
from events prior to such termination.
16. Binding Obligations. Customer and Custodian each hereby represent that this Agreement
constitutes its legal, valid and binding obligation enforceable in accordance with the terms hereof; subject,
as to enforcement of remedies, to applicable bankruptcy and insolvency laws, and to general principles of
equity.
17. General Provisions.
17.1. Notice. Except as provided in paragraph 11 above, any notice or other communication under this
Agreement shall be in writing and shall be considered given when delivered by certified mail, return receipt
requested, to the parties at the addresses set forth on the execution page hereof (or at such other address
as a party may specify by notice to other). Notice shall be effective upon receipt if by mail, or on the date
of personal delivery (by private messenger, courier service or otherwise) or telex or facsimile, whichever
occurs first, to the addressed indicated below. The below addresses and individuals may be changed at
any time by an instrument in writing executed by the party giving same and given to the other party, in
accordance with the procedure set forth above.
17.2. No Tax Responsibility. Unless expressly indicated otherwise below in this section and
notwithstanding any other terms or conditions contained herein, Custodian shall not be responsible for,
and Customer does hereby waive all duties or functions of Custodian (imposed by law or otherwise)
relating to, the withholding and government deposit of any and all taxes, or amounts with respect thereto,
that may be incurred or payable in connection with the Account established hereunder, income or gain
realized on Assets held therein or transactions undertaken with respect thereto. Except as required by law
in such manner that cannot be delegated to or assumed by Customer, Custodian shall have no
responsibility to undertake any federal, state, or local tax reporting in connection with Assets, the Account
or transactions therein. (Check only one below.)
Custodian shall have no duty to provide tax information.
Custodian shall provide tax information as reasonably requested by Customer, including
Form 1099.
17.3. Complete Agreement; Modification. This Agreement contains a complete statement of all the
arrangements between the parties with respect to its subject matter, supersedes all existing agreement(s)
between them concerning the subject, and cannot be amended or modified in any manner except by a
written agreement executed by both parties. Notwithstanding the foregoing, if at any time Custodian is
holding assets or property of Customer pursuant to any other custodial, pledge or other agency agreement
with Customer (or which Customer has acknowledged in instructions to Custodian) and one or more third
parties that involves Custodian's duties or obligations to a third party (which may be affiliates to Custodian)
with respect to Assets, the terms and requirements of the other agreement(s) concerning such Assets
shall supersede and control the provisions and duties set forth herein.
17.4. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota applicable to agreements made and to be performed in Minnesota.
17.5. Assignment. No party may assign any of its rights hereunder without the consent of the other,
which consent shall not be unreasonably withheld. The foregoing consent requirement does not apply if
either party shall merge or consolidate with or sell substantially all of its assets to another corporation,
provided that such other corporation shall assume without qualification or limitation all obligations of that
party hereunder either by operation of law or by contract.
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17.6. Separability. If any provision of this Agreement is invalid or unenforceable, the balance of the
Agreement shall remain in effect, and if any provision is inapplicable to any person or circumstances, it
shall nevertheless remain applicable to all other persons and circumstances.
17.7. No Third Party Rights. In performing its services hereunder, Custodian is acting solely on behalf of
Customer. No agency, contractual or service relationship shall be deemed to be established hereby
between Custodian and any other persons.
17.8. Counterparts and Duplicates. This Agreement may be executed in any number of counterparts,
each of which shall be considered an original, but all of which together shall constitute the same
instrument. This Agreement and any administrative form under the Agreement may be proved either by a
signed original or by a reproduced copy thereof (including, not by way of limitation, a microfiche copy or an
electronic file copy).
17.9. Shareholder Communications Act Authorization. The Shareholder Communications Act of 1985, as
amended, requires Custodian to make an effort to permit direct communications between a company that
issues securities and the shareholder that exercises shareholder rights with respect to those securities.
Unless Customer specifically directs Custodian in writing not to release Customer's name, address and
security position to requesting companies, Custodian is required by law to disclose Customer's name and
address to such companies. Therefore the Customer hereby responds to the following question [no
response will mean "yes"]. Does Customer authorize Custodian to provide its name, address and security
position to requesting companies whose stock is owned in this Account? Yes / No
17.10. Customer's Agent — Shareholder Rights. Should Customer require that a designated agent for the
Account, such as an investment advisor, be responsible for proxy voting and other special matters and
shareholder rights as specified in Section 2.4, above, the Customer shall provide the name and address of
that agent below. Such agent shall be removed upon Custodian's receipt of a written removal from
Customer. Customer may designate more than one agent to be responsible for separate sub-Accounts or
investment accounts under this Agreement by providing a clear, written designation to that effect to
Custodian. Custodian hereunder has no authority or responsibility with regard to proxy voting or any
similar special matters. Therefore, it may not be designated below unless it has separately agreed in
writing to act as investment advisor for the Account.
Designated
Agent:
Address:
Telephone Number:
17.11. Money Market Fund. Pursuant to Section 2.5, above, the First American Funds money market
fund designated for this Account shall be (check one — if none is checked, the Customer hereby directs
that the First American Prime Obligations Fund shall be designated):
Taxable Money Market Funds
First American Prime Obligations Fund —Class
First American Government Obligations Fund —Class
First American Treasury Obligations Fund —Class
Federal Tax-Exempt Money Market Fund
First American Tax-Free Obligations Fund —Class
Other
Fund — Cbss
(Must indicate correct fund name and class for election to be valid.)
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representative as of the date and year first above written.
(Customer) U.S. BANK NATIONAL ASSOCIATION
(Custodian)
By:
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Title:
Date:
Address:
Title:
Date:
Address:
U.S.Bank National Association
Attn:
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ADDENDUM TO CUSTODY AGREEMENT
1. Audit Disclosure. Any reports, information, data, etc. given to, or prepared or
assembled by the Custodian under this Agreement which the Customer requests to
be kept confidential, shall not be made available to any individual or organization
without the Customer's prior written approval. The books, records, documents and
accounting procedures and practices of the Custodian or other parties relevant to
this Agreement are subject to examination by the Customer and either the
Legislative Auditor or the State Auditor for a period of six (6) years after the
effective date of this Contract. The Custodian shall at all times abide by Minn.
Stat. 13.01 et seq., the Minnesota Government Data Practices Act, to the extent
the Act is applicable to data and documents in the possession of the Custodian.
2. Subcontractor. The Custodian 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 Customer. The Custodian shall pay any
subcontractor involved in the performance of this Agreement within the ten (10)
days of the Custodian's receipt of payment by the Customer for undisputed
services provided by the subcontractor. If the Custodian fails within that time to
pay the subcontractor any undisputed amount for which the Custodian has
received payment by the Customer, the Custodian 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
Custodian shall pay the actual interest penalty due to the subcontractor. A
subcontractor who prevails in a civil action to collect interest penalties from the
Custodian shall be awarded its costs and disbursements, including attorney's fees,
incurred in bringing the action.
3. Non-Discrimination. During the performance of this Agreement, the Custodian
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 Custodian
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 Custodian
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
Custodian 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.
4. Compliance with Laws and Regulations. In providing services hereunder, the
Custodian shall abide by statutes, ordinances, rules and regulations pertaining to
the provisions of services to be provided. The Custodian and Customer, together
with their respective agents and employees, agree to abide by the provisions of the
Minnesota Data Practices Act, Minnesota Statutes Section 13, as amended, and
Minnesota Rules promulgated pursuant to Chapter 13. 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 Customer to
immediately terminate this Agreement.
5. Conflicts. No salaried officer or employee of the Customer and no member of the
Board of the Customer shall have a financial interest, direct or indirect, in this
Contract. The violation of this provision renders the Contract void. Any federal
regulations and applicable state statutes shall not be violated.
CITY COUNCIL AGENDA
SECTION: Reports of the Public Works Director
DATE:
October 7, 2008
DEPARTMENT/DIVISION:
Gene Dietz,
Public Works Director
ITEM DESCRIPTION:
First Reading of an Ordinance Amending
City Code Chapter 3 Relating to
Watering of Another’s Property
ITEM NO.: XIV.E.1.
Requested Action
Move to: Approve First reading of Ordinance Amending City Code Chapter 3 Relating to
Watering of Another’s Property.
Synopsis
This ordinance has been prepared in order to prohibit one property owner from watering the
property of an adjoining property. It has been prepared in response to a localized situation.
Attachments
Draft Ordinance
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. -2008
AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA AMENDING CITY CODE
CHAPTER 3 BY AMENDING SECTION 3.30, SUBD. 12 BY ADDING PROVISIONS
REGARDING WATERING OF ANOTHER’S PROPERTY; AND ADOPTING BY REFERENCE
CITY CODE CHAPTER 1 AND SECTION 3.99 WHICH AMONG OTHER THINGS CONTAIN
PENALTY PROVISIONS.
The City Council of the City of Eden Prairie, Minnesota, ordains:
Section 1. City Code Chapter 3, Section 3.30, Subd. 12 is amended by adding a new Subparagraph F
which shall read as follows:
F. No person shall intentionally or unintentionally cause water used for watering, sprinkling or
irrigation of lawn areas, grass or turf to trespass upon the property of another.
Section 2. City Code Chapter 3, Section 3.30, Subd. 12, Subparagraph F is amended by re-lettering
Subparagraph F as Subparagraph G.
Section 3. City Code Chapter 1 entitled “General Provisions and Definitions Applicable to the Entire City
Code including Penalty for Violation” and Section 3.99 entitled “Violation of Misdemeanor or
Petty Misdemeanor” are hereby adopted in their entirety by reference as though repeated
verbatim herein.
Effective Date: 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 7th day of
October, 2008, and finally read and adopted and ordered published at a regular meeting of the City Council
of said City on the ____ day of _____________________, 2008.
Kathleen Porta, City Clerk Phil Young, Mayor
PUBLISHED in the Eden Prairie News on the _____ day of ___________, 2008.