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HomeMy WebLinkAboutCity Council - 05/21/2013 AGENDA CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY,MAY 21, 2013 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters Workshop-Heritage Room II I. TOWN CENTER ALIGNMENT (5:30-6:10) II. 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT/AUDIT (6:10-6:30) Open Podium - Council Chamber III. OPEN PODIUM IV. ADJOURNMENT AGENDA EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY, MAY 21, 2013 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, City Planner Michael Franzen, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, City Attorney Ric Rosow and Council Recorder Carol Pelzel I. CALL THE MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. COUNCIL FORUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. HUMAN RIGHTS AWARD B. GRANT FROM CENTERPOINT TOWARD PURCHASE OF LUCAS II AUTOMATIC CHEST COMPRESSION DEVICE (Resolution) C. 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT/AUDIT V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY,MAY 7,2013 B. CITY COUNCIL MEETING HELD TUESDAY, MAY 7, 2013 VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR A. APPROVE SETTLEMENT AGREEMENT RELATING TO THE 11003 BELL OAKS CONSERVATION EASEMENT B. APPROVE PURCHASE OF TWO CUSTOM BUILT PARKING RAMP SUPPRESSION VEHICLE SLIDE IN UNITS AND ONE ATV UNIT C. APPROVE CITY'S FINANCIAL POLICIES FOR 2014/2015 BUDGET CITY COUNCIL AGENDA May 21, 2013 Page 2 D. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WENCK ASSOCIATES FOR PHASE IV POND INVENTORY AND INSPECTION PROGRAM E. AWARD 2013 SEALCOAT CONTRACT TO ALLIED BLACKTOP COMPANY F. AWARD 2013 OVERLAY CONTRACT TO WM. MUELLER& SONS, INC. G. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WENCK ASSOCIATES FOR DESIGN AND CONSTRUCTION ADMINISTRATION OF SLOPE STABILIZATION PROJECT AT 11157 BLUESTEM LANE H. APPROVE FIRST AMENDMENT TO AGREEMENT REGARDING SPECIAL ASSESSMENTS WITH UNITED HEALTHCARE SERVICES, INC. FOR SHADY OAK ROAD IMPROVEMENTS I. APPROVE CONTRACT WITH STATE OF MINNESOTA FOR PURCHASE OF "MICROSOFT OFFICE PROFESSIONAL ONLY" LICENSES J. AWARD CONTRACT FOR WATERCRAFT INSPECTIONS AT FOUR LAKES TO VOLT WORKFORCE SOLUTIONS IX. PUBLIC HEARINGS/MEETINGS A. RESOLUTION APPROVING ISSUANCE BY THE CITY OF DEEPHAVEN, MINNESOTA, OF CHARTER SCHOOL LEASE REVENUE BONDS, SERIES 2013A AND SERIES 2013B (EAGLE RIDGE ACADEMY PROJECT) X. PAYMENT OF CLAIMS XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. City Manager Compensation B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR CITY COUNCIL AGENDA May 21, 2013 Page 3 1. Grant Funding from the Eden Prairie Community Fund for Sound Equipment for Concerts and Special Events (Resolution) E. REPORT OF PUBLIC WORKS DIRECTOR F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF 1. Grant from Eden Prairie Community Fund Toward Purchase of Lucas II Automatic Chest Compression Device (Resolution) H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT ANNOTATED AGENDA DATE: May 17, 2013 TO: Mayor and City Council FROM: Rick Getschow, City Manager RE: City Council Meeting for Tuesday, May 21, 2013 TUESDAY, MAY 21, 2013 7:00 PM, COUNCIL CHAMBER I. CALL THE MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION Open Podium is an opportunity for Eden Prairie residents to address the City Council on issues related to Eden Prairie city government before each Council meeting, typically the first and third Tuesday of each month, from 6:30 to 6:55 p.m. in the Council Chamber. If you wish to speak at Open Podium,please contact the City Manager's office at 952.949.8412 by noon of the meeting date with your name, phone number and subject matter. If time permits after scheduled speakers are finished, the Mayor will open the floor to unscheduled speakers. Open Podium is not recorded or televised. If you have questions about Open Podium,please contact the City Manager's Office. IV. PROCLAMATIONS/PRESENTATIONS A. HUMAN RIGHTS AWARD Human Rights & Diversity Commission Vice Chair PG Naryananan will present the Human Rights Award. Accepting the award on behalf of the Hammer Residences are John Estrem, CEO, and Lisbeth Armstrong, Chief Program Officer. B. GRANT FROM CENTERPOINT TOWARD PURCHASE OF LUCAS II AUTOMATIC CHEST COMPRESSION DEVICE (Resolution) A grant in the amount of $2,500 from CenterPoint will be used to offset the purchase of a fourth Lucas II, insuring that each fire station has one readily available to assist with responses to cardiac arrest incidents. A representative from CenterPoint will be on hand to present the check to the City. MOTION: Move to adopt the Resolution accepting grant funding from Center Point Energy to help offset the purchase price of a Lucas II Automated Chest Compression device. ANNOTATED AGENDA May 21, 2013 Page 2 C. 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT/AUDIT Steve Wischmann, Partner in the accounting firm will make a presentation of the financial report. Synopsis: Minnesota statutes require that by June 30 of each year,the City prepare a financial report for activities of the previous year. This accounting report will be forwarded to the State by that deadline. Preparation of the report is largely the work of the Finance Division. The report is prepared with review by the independent auditing firm of Kern,Dewenter,Viere,Ltd. Kern,Dewenter,Viere,Ltd issued an unqualified opinion which is the highest level of opinion the City can receive and means the auditor believe the financial statements are fairly presented in all material respects. MOTION: Move to: accept the 2012 Comprehensive Annual Financial Report (CAFR). V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS MOTION: Move to approve the agenda. VI. MINUTES MOTION: Move to approve the following City Council minutes: A. COUNCIL WORKSHOP HELD TUESDAY, MAY 7, 2013 B. CITY COUNCIL MEETING HELD TUESDAY, MAY 7, 2013 VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR MOTION: Move approval of items A-J on the Consent Calendar. A. APPROVE SETTLEMENT AGREEMENT RELATING TO THE 11003 BELL OAKS CONSERVATION EASEMENT B. APPROVE PURCHASE OF TWO CUSTOM BUILT PARKING RAMP SUPPRESSION VEHICLE SLIDE IN UNITS AND ONE ATV UNIT C. APPROVE CITY'S FINANCIAL POLICIES FOR 2014/2015 BUDGET D. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WENCK ASSOCIATES FOR PHASE IV POND INVENTORY AND INSPECTION PROGRAM ANNOTATED AGENDA May 21, 2013 Page 3 E. AWARD 2013 SEALCOAT CONTRACT TO ALLIED BLACKTOP COMPANY F. AWARD 2013 OVERLAY CONTRACT TO WM. MUELLER& SONS, INC. G. APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WENCK ASSOCIATES FOR DESIGN AND CONSTRUCTION ADMINISTRATION OF SLOPE STABILIZATION PROJECT AT 11157 BLUESTEM LANE H. APPROVE FIRST AMENDMENT TO AGREEMENT REGARDING SPECIAL ASSESSMENTS WITH UNITED HEALTHCARE SERVICES, INC. FOR SHADY OAK ROAD IMPROVEMENTS I. APPROVE CONTRACT WITH STATE OF MINNESOTA FOR PURCHASE OF "MICROSOFT OFFICE PROFESSIONAL ONLY"LICENSES J. AWARD CONTRACT FOR WATERCRAFT INSPECTIONS AT FOUR LAKES TO VOLT WORKFORCE SOLUTIONS IX. PUBLIC HEARINGS/MEETINGS A. RESOLUTION APPROVING ISSUANCE BY THE CITY OF DEEPHAVEN, MINNESOTA, OF CHARTER SCHOOL LEASE REVENUE BONDS, SERIES 2013A AND SERIES 2013B (EAGLE RIDGE ACADEMY PROJECT) Official notice of this public hearing was published in the May 3, 2013, StarTribune. Synopsis: The City of Deephaven plans to issue bonds for the purpose of financing the approximately $9,500,000 of project costs on behalf of Eagle Ridge Academy Affiliated Building Company. The project will consist of the acquisition, improvement, betterment or extension of approximately 77,848 square foot charter school facility located at 7255 Flying Cloud Drive, Eden Prairie. Because the project is located in Eden Prairie, federal regulations require the City hold a public hearing to give parties an opportunity to express their views. The City of Eden Prairie did not issue the bonds because of planned debt issuance for the year which would affect the City's ability to maintain bank qualified bonds and a lower interest rate. MOTION: Move to: • Close the public hearing; and • Adopt resolution approving the issuance by the City of Deephaven, Minnesota of its Charter School Lease Revenue Bonds, Series 2013A and Series 2013B (Eagle Ridge Academy Project) ANNOTATED AGENDA May 21, 2013 Page 4 X. PAYMENT OF CLAIMS MOTION: Move approval of Payment of Claims as submitted (Roll Call Vote). XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. City Manager Compensation B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR 1. Grant Funding from the Eden Prairie Community Fund for Sound Equipment for Concerts and Special Events (Resolution) Synopsis: A grant in the amount of$4,173 will be used to purchase sound equipment such as sound mixing boards and wireless microphones. The sound equipment will be primarily used for the Staring Lake Concert Series and the Summer Musical. It will also be used at large community events such as the 4th of July and Arts in the Park. Over 15,000 patrons attend concerts, theater productions and events in Eden Prairie every year. MOTION: Move to adopt the Resolution accepting the grant funding from the Eden Prairie Community Foundation to purchase sound equipment for concerts and special events. D. REPORT OF PUBLIC WORKS DIRECTOR E. REPORT OF POLICE CHIEF F. REPORT OF FIRE CHIEF 1. Grant from Eden Prairie Community Fund Toward Purchase of Lucas II Automatic Chest Compression Device (Resolution) Synopsis: A grant in the amount of$3,000 will be used to offset the purchase of a 4th Lucas II insuring that each fire station has one readily available to assist with responses to cardiac arrest incidents. ANNOTATED AGENDA May 21, 2013 Page 5 MOTION: Move to adopt the Resolution accepting the grant funding from the Eden Prairie Community Foundation to help offset the purchase price of a Lucas II Automated Chest Compression device. G. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Move to adjourn the City Council meeting. CITY COUNCIL AGENDA DATE: SECTION: Presentations May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IV.A. Community Development Molly Koivumaki, Manager, Housing Human Rights Awards and Community Services Synopsis Human Rights &Diversity Commission Vice Chair PG Naryananan will present the Human Rights Award. Accepting the award on behalf of the Hammer Residences are John Estrem, CEO, and Lisbeth Armstrong, Chief Program Officer. Non-Profit Organization-Hammer Residences, Inc. Hammer Residences provides residential services for 36 adults with disabilities at 3 Eden Prairie locations: Broadmoor Apartments, Lake Place Apaitalents and Eden Place Apaitiuents. Hammer's mission is to provide adults and children with developmental disabilities the opportunity to experience life to its fullest. Hammer rents multiple units and has staff occupy one unit 24/7. Hammer's goals closely align with those of the Eden Prairie Manifesto. Hammer employees are dedicated to upholding the rights of every individual to freedom, dignity and security regardless of physical or mental abilities. Hammer was established to promote acceptance and respect for individuals in an atmosphere of caring for others. Parents of developmentally disabled people have found Hammer Residences in Eden Prairie to be the perfect fit for their children. The 36 residents are well taken care of, loved and respected while building autonomy near the homes in which they grew up. Human Rights and Diversity Commission members are Laura Kaczmarek, Chair; PG Narayanan, Vice Chair; Zina Nourkadi; Jenny Buckland; Sana Elassar; Sandra Filardo; Connie lacovelli; Molly Koivumaki, Staff Liaison CITY COUNCIL AGENDA DATE: SECTION: Presentations May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IV.B. George F. Esbensen, Fire Center Point Energy Award—Lucas II Chief/Director of Emergency Device Preparedness Requested Action Move to: Adopt the Resolution accepting grant funding from Center Point Energy to help offset the purchase price of a Lucas II Automated Chest Compression device. Synopsis A grant in the amount of$2,500 will be used to offset the purchase of a fourth Lucas II, insuring that each fire station has one readily available to assist with responses to cardiac arrest incidents. Attachment Grant Award Letter CenteCenterPoint. - 800 LaSalle Avenue PO Box 59038 Energy Minneapolis,MN 55459-0038 April 16, 2013 Mr. Rick Getschow City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Dear Mr. Getschow: Thank you for submitting an application for a CenterPoint Energy Community Partnership Grant. • I am pleased to inform you that a grant in the amount of$2,500 has been awarded to the City of Eden Prairie for a Lucas 2 Mechanical Chest Compression System for the fire department. We would appreciate the opportunity to present the Community Partnership Grant check at a council meeting in May or June. Would you please provide the following information and fax to Community Relations at 507-387-1997. May -June council meetings: (1) Dates(s): b 4 (2) Time: /j k '4 (3) Location: , (4) Name of contact and phon9 number to schedule attendance: We will coordinate with a CenterPoint Energy representative to attend and present the Community Partnership Grant check. Congratulations, and thank you for making safety a top priority in your community. Sincerely, rt ion Jean Krause ► Director, Community Relations dik COO*" cc: Fire Chief George Esbensen 4„0 °°��uurrit�Es •�p CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2013- RESOLUTION RELATING TO ACCEPTANCE OF GIFTS BE IT RESOLVED BY THE EDEN PRAIRIE CITY COUNCIL THAT: The gift to the City in the am ount of$2,500 to help offset the purchase price of a Lucas II Automated Chest Compression device from Cent er Point Energy is hereby recog nized and accepted by the Eden Prairie City Council. ADOPTED by the City Council of the City of Eden Prairie this 21st day of May, 2013. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk CITY COUNCIL AGENDA DATE: SECTION: Presentations May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: IV.C. Sue Kotchevar, Office of the 2012 Comprehensive Annual Financial City Manager/Finance Report(CAFR) Requested Action Move to: Accept the 2012 Comprehensive Annual Financial Report (CAFR). Synopsis Minnesota statutes require that by June 30 of each year,the City prepare a financial report for activities of the previous year. This accounting report will be forwarded to the State by that deadline. Preparation of the report is largely the work of the Finance Division. The report is prepared with review by the independent auditing firm of Kern,Dewenter,Viere,Ltd. Kern,Dewenter,Viere, Ltd issued an unqualified opinion which is the highest level of opinion the City can receive and means the auditor believe the financial statements are fairly presented in all material respects. Steve Wischmann,Partner in the accounting firm will make a presentation of the financial report. Attachments • 2012 CAFR • Communication Letter • Schedule of Expenditures of Federal Awards and Independent Auditor's Reports ii,i„.._ COMPREHENSIVE ANNUA . , FINANCIAL REPORT EDEN FOR THE YEAR ENDED DECEMBER 31, 2012 PRAI RI E CITY OF EDEN PRAIRIE, MINNESOTA LIVE•WORK•DREAM - i ■ J I 1 p r YC t, '•_ - Ms,-..., - r9- T •— ,,, . . .!"- ,... r ;1 -Arai . yls. .._ F � •=;. _ r - Iy- ��J '�/f! �r � ��1 it , •�} 4faie tii_ i t f I ': ...: ' f I . �it 1i I _\ J _ � `rIII i HI II um_ - . — ...... at ill- i Ir. i. 9 _ r7 _ • __ M- - 1, __ _+F '4f Wars. - COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF EDEN PRAIRIE MINNESOTA For The Year Ended December 31, 2012 Rick Getschow, City Manager Prepared by THE FINANCE DIVISION Sue Kotchevar, Chief Financial Officer City of Eden Prairie, Minnesota For the Year Ended December 31, 2012 Table of Contents Page Introductory Section Letter of Transmittal 6 GFOA Certificate of Achievement 14 Organizational Chart 15 List of Principal Officials 16 Financial Section Independent Auditor's Report 18 Management's Discussion and Analysis 21 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 36 Statement of Activities 37 Fund Financial Statements Balance Sheet-Governmental Funds 40 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 42 Statement of Revenues,Expenditures and Changes in Fund Balances - Governmental Funds 43 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 45 Statement of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual- General Fund 46 Statement of Net Position- Proprietary Funds 49 Statement of Revenues,Expenses and Changes in Net Position- Proprietary Funds 50 Statement of Cash Flows - Proprietary Funds 51 Statement of Fiduciary Net Position-Agency Funds 53 Notes to Financial Statements 54 City of Eden Prairie, Minnesota For the Year Ended December 31, 2012 Page Required Supplemental Information Modified Approach for Infrastructure Assets 92 Other Post-Employment Benefits Plan 93 Combining Fund Statements Combining Balance Sheet-Nonmajor Governmental Funds 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds 111 Combining Statement of Net Position - Internal Service Funds 121 Combining Statement of Revenues, Expenses and Changes in Net Position- Internal Service Funds 123 Combining Statement of Cash Flows - Internal Service Funds 125 Combining Statement of Fiduciary Net Position-Agency Funds 130 Combining Statement of Changes in Assets and Liabilities - Agency Funds 131 Statistical Section Government-wide Net Position by Category 134 Changes in Net Position - Total 135 Changes in Net Position - Governmental Activities 136 Changes in Net Position - Business-type Activities 137 Fund Balances - Governmental Funds 138 Changes in Fund Balances - Governmental Funds 139 Assessed/Tax Capacity Value and Estimated Market Value of Property 140 Direct and Overlapping Property Tax Rates 141 Principal Property Taxpayers 142 Property Tax Levies and Collections 143 Legal Debt Margin 144 Ratios of Outstanding Debt by Type 145 Ratios of Total Debt Outstanding by Type 146 Computation of Direct and Overlapping Bonded Debt- General Obligation Bonds 147 Demographic and Economic Statistics 148 Principal Employers 149 Employees by Function 150 Operating Indicators 157 Capital Assets Statistics by Function 158 Introductory EDEN PRAIRIE May 6, 2013 1IVE•woFK•DREArd To the Honorable Mayor, Members of the City Council and the Citizens of the City of Eden Prairie: The comprehensive annual financial report of the City of Eden Prairie, Minnesota, for the year ended December 31, 2012, is hereby submitted. The report was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board and meets the requirements of the State Auditor's Office. The report consists of management's representations concerning the finances of the City. Consequently management assumes full responsibility for the completeness and reliability of all information presented within this report. To provide a reasonable basis for making these representations, management of the City has established internal controls designed to protect the City's assets from loss, theft or misuse and to provide sufficient information for the preparation of these financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the City's internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that to the best of our knowledge and belief this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Kern, DeWenter, Viere, Ltd. Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates used by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there was reasonable basis for rendering an unqualified opinion that the City's financial statements, for the year ended December 31, 2012, are fairly presented in conformity with GAAP. The independent auditors report is present in the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in 6 conjunction with it. The City's MD&A can be found in the financial section of this report immediately following the report of the independent auditors. City Profile Eden Prairie is a suburban community of 61,200 people located in the southwest corner of Hennepin County in a setting of rolling hills and picturesque lakes and creeks. Eden Prairie has a convenient location, a comprehensive system of highways, and is a short distance from downtown Minneapolis and St. Paul and the Minneapolis-St. Paul International Airport. Incorporated in 1974 as a City,the City of Eden Prairie operates under a Statutory Plan B form of government. Policymaking and legislative authorities are vested in the governing council, which consists of a mayor and a four-member council. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the government's manager and attorney. The council is elected on a nonpartisan basis. The mayor and council members are elected to four-year staggered terms. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to- day operations of the government, and to assign appropriate responsibility and authority to City staff for the efficient and effective delivery of City services. The City provides its residents and businesses with a full range of municipal services consisting of police and fire protection, street maintenance, recreation programs, park maintenance, community and economic development,building inspections, and a water and sewer utility. The City is also financially accountable for the Housing and Redevelopment Authority (HRA), which is included in the City's financial statements as a blended component unit. Additional information on the HRA can be found in Note 1 in the notes to the financial statements. The biennial budget serves as the foundation for the City's financial planning and control. Departments submit budget requests to Finance in May and the City Manager presents the proposed budget to the City Council for review prior to September 15th of each year. Budget workshops are usually held with the City Council in June or July and in August. The City Council holds a public meeting on the proposed budget and adopts the final budget in December each year. During the first year of the two year budget process, both years' budgets are developed and the first year's budget is adopted by the council. During the second year of the two year budget process, budget work is minimized. Staff updates the budget for any significant budget developments and the council then reviews and adopts the second year budget. 7 The budget is prepared by department and division. The City's directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. Any changes in the total budget must be approved by the City Council. Economic Conditions and Outlook The City of Eden Prairie is located in the southwest corner of the Minneapolis/St. Paul Metropolitan area. With the update of the comprehensive plan in 2008 and the trend towards condensed multi-family housing in the downtown area, it is expected that Eden Prairie's population will grow to 77,100. Year Population Increase 1960 Census 3,233 134% 1970 Census 6,938 115% 1980 Census 16,263 134% 1990 Census 39,311 142% 2000 Census 54,901 40% 2010 Census 60,797 11% 2012 City Estimate 61,151 1% As you can see from the table below,the City added significant new market value in 2012. z $300 $12 Market Value History o $250 - /.--•`� - $1 o *g $200 - - $8 0 h � 44 71 $150 — — $6 11 x $100 — $4 t $50 $2 ct Z $0 I I 1 I 1 I I I I $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 New Market Value Total Market Value The business environment in Eden Prairie is good. Eden Prairie's unemployment rate is 4.2% which is less than the State rate of 5.4% and the US rate of 7.6%. Business continues to invest in Eden Prairie including the following new development this past year: • United Health Group - construction of office space valued at $101,000,000 and a parking ramp valued at$24,400,000. 8 • CH Robinson Worldwide - construction of $9,730,000 additional building for their worldwide headquarters • Dos Manitas Daycare - construction of$ 1,100,000 for a new daycare center Significant additions and remodels included the following: • Rosemount extensive interior and exterior building remodel- $16,099,342 valuation • Colliers parking ramp expansion - $2,686,000 valuation • Best Buy remodel and new store front- $2,150,000 valuation • Thunderbird Aviation building remodel and expansion - $1,889,000 valuation Also, as you can see from the previous graph, the City's tax base declined from $8.9 billion to $8.6 billion from 2011 to 2012. The change for 2013 is more moderate with a decrease to $8.5 billion. These changes are due to general market conditions and are not reflective of circumstances specific to Eden Prairie. There is an even more moderate change for 2014 with increases in value for apartments and commercial properties. Light Rail Transit(LRT) The proposed Southwest Light Rail Transit (LRT) line is a high-frequency train serving Eden Prairie, Minnetonka, Hopkins, St. Louis Park, and Minneapolis. It is part of the Green Line which includes the Central Corridor LRT currently under construction. Therefore, riders of Southwest LRT will be able to continue into St. Paul via Central Corridor without changing trains. The Southwest LRT line will also connect to other rail lines (Hiawatha, Northstar, and the future Bottineau) and high-frequency bus routes in downtown Minneapolis, providing access to the University of Minnesota, Minneapolis-St. Paul Airport, Mall of America, the State Capitol, downtown St. Paul, Big Lake, and eventually the northern Twin Cities suburbs. Connections to other rail lines will occur at the Intermodal Station in downtown Minneapolis. At this time, the Southwest LRT is projected to open in 2018,though project schedule depends on securing federal and local funds. There are five proposed Light Rail stations in Eden Prairie. The Operation and Maintenance Facility (OMF) for the Southwest LRT trains is also being considered for Eden Prairie. Eden Prairie's LRT projects include planning and development of the stations, park-and-ride facilities, potential OMF, local roadway improvements, sidewalks, trails, streetscape and other infrastructure. The station areas also have great potential for additional housing, employment and shopping opportunities via infill or redevelopment. 9 United Health Group The northeast corner of Eden Prairie is being transformed as reconstruction projects along Shady Oak Road and The United Health Group (UHG) campus have started. The first phase of the UHG project will include the construction of two eight story buildings and a parking ramp set for completion in 2013. The project will also include two more buildings with expected construction in 2014 to 2016. The projects buildings total almost 1.5 million square feet of office space on 71 acres. The $240 M redevelopment project is transforming the wooded area just bordering Eden Prairie into a state-of-the-art walkable corporate campus with space for a light rail transit station. Presbyterian Homes has a signed development agreement for 70,000 SF of commercial space, 447 care center and senior units, and 260 market rate apartments. This project is expected to start in 2014. Eden Prairie serves as the corporate headquarters location for many national and international businesses including CH Robinson World Wide, GE Capital, United Healthcare Services, numerous multi-tenant office building partnerships, Lifetouch Inc., SuperValu Inc, American Family Mutual Insurance, MTS systems Corporation, and others. Eden Prairie also has key locations for retailing including the City's mall which was completely remodeled in 2001 and has approximately 1.5 million square feet of shopping. The mall is part of the City's "Major Center Area" or downtown. Stores include a 160,000 square foot Von Maur Department Store, a Barnes and Noble Bookstore, an 18-screen AMC movie theater, numerous restaurants including Wildfire, Biaggi's, and other national retailers. The Southwest Station is also part of the City's downtown and includes the Southwest metro transit hub and offices, 900 car parking structure, multiple restaurants and a luxury 236 unit condominium complex. Long-term Financial Planning The City has implemented various financial/budget policies to guide the Council and staff when making financial decisions to ensure the long-term stability and flexibility of City finances and operations. These polices include the following: • The original budget should be balanced with revenues equal to expenditures, • One-time revenues will be used for one-time expenditures, • The City will maintain fund balance for working capital in the general fund 50% of the next year's tax levy, • The City will also maintain 10% of the next year's budget in fund balance for budget stabilization and 5% of the next year's budget for budget balancing, 10 • The City will confine long-term debt to capital improvements or projects that cannot be financed from current revenues,and • The City will maintain a ten-year capital improvement plan to provide for capital asset acquisition,maintenance, replacement, and retirement. As part of the budget process,the council reviews and updates the City's financial policies. Major Initiatives Flying Cloud Athletic Field Expansion The Flying Cloud Athletic Field expansion improvements have been in the planning and development process since 2002. The scope of this project included the mass grading of 28 acres of land to build four youth athletic fields, an access road, parking lots and storm water infiltration basins on property leased by the City from the Metropolitan Airport Commissions (MAC). The youth athletic fields consist of two multi-purpose turf fields suitable for soccer, lacrosse and football, along with two fenced baseball fields. The project is 90% complete and cost $1.5 M. The fields are expected to be open for play this spring. Round Lake Park Updates Round Lake Park is one of Eden Prairie's three largest park facilities and is the designated location for the City's annual 4th of July Hometown Celebration since 1984, and it is now one of Eden Prairie's most frequently used parks. Round Lake Park had reached the age and condition where replacement was needed. As a result, a master plan for the redevelopment of the park was completed and the renovation of the park includes the following: • Play areas and equipment for ages 2-5 and grades K-12 • A splash pad with a variety of spray features • Shaded seating areas and picnic tables around the play areas and splash pad • Adult exercise equipment • Improvements to the picnic pavilion • Increased barrier-free accessibility The Park upgrades were substantially completed in 2012 and in the spring of 2013 the project will be completed. 11 Energy Initiative Over the past several years, the City of Eden Prairie has been implementing an energy initiative called 20-40-15 that is aimed at increasing the overall efficiency of the City's use of electricity, fuel and other energy resources. The plan calls for increased energy efficiency in City-owned facilities by 20 percent; increased fuel efficiency in the City's fleet of vehicles by 40 percent; and accomplishing these goals by the year 2015. The City has recently completed Phase III of 20-40-15 and Phase IV is in the planning stages. As of October 2012 the City has successfully: • Reduced total energy consumption by almost 12 billion British Thermal Units (BTU's). • Increased overall energy efficiency by 15 percent • Reduced annual carbon dioxide emissions by 2,000 metric tons • Achieved nearly$200,000 in annual energy cost savings The City is three-fourths of the way toward its goal of improving energy efficiency. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Eden Prairie for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31,2011. The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such comprehensive annual financial report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City of Eden Prairie has received a Certificate of Achievement every year since 1990. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. In addition, the Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation award to the City of Eden Prairie for its Two Year Budget for the fiscal years beginning January 1, 2012 and 2013. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and a communications device. The award is valid for a period of two years only. The City of Eden Prairie has received a Distinguished Budget Presentation award for every budget since 1998. 12 Also,the Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Eden Prairie for its Popular Annual Financial Report for the fiscal year ended December 31, 2011. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The City of Eden Prairie has received the award annually since 1998. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA. Acknowledgements We would like to express our appreciation to the employees of the Finance Division for their contribution to the preparation of this report. We would also like to thank the Mayor and Council Members for their continued support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, jr.t, Rick Getschow Sue Kotchevar City Manager Chief Financial Officer 13 City of Eden Prairie, Minnesota For the Year Ended December 31, 2012 Certificate of Achievement for Excellence in Financial Reporting Presented City of Eden Prairie Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31,2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United Stam MCI Canada to government units and public employee retirement systems whale comprehensive annual financial repot(CAFRs)achieve the highest standards in government accounting and financial reporting. 1Hsel.c4;r P AefFIA'429 W itara�s " tso mumaknAtcryi n Frc idi t[ tAliZ61 41' *AP 1906A, Executive Director 14 City of Eden Prairie, Minnesota For the Year Ended December 31, 2012 City of Eden Prairie Organization Structure Citizens Housing&Redevelopment Boards&Commissions City Council Authority(HRA)* *Council serves in this capacity • Arts&Culture Commission • Board of Appeal and Equalization • Budget Advisory Commission t • Conservation Commission City Manager • Flying Cloud Airport Advisory Commission • Heritage Preservation Commission City Attorney • Human Rights&Diversity Commission • Parks,Recreation&Natural Resources Commission • Planning Commission 111 Departments 1 I I 1 Administration Community Development Parks&Natural Police Engineering/ Resources Public Works • Communication • Assessing • Community Center • Investigation • Building Inspections • Engineering • Facilities • Economic • Parks • Patrol • Emergency • Fleet Management • Finance Development • Recreation • Support Services Preparedness • Streets • Human Resources • Housing& • Fire Inspections • Utilities/Water • IT Community Services • Fire Suppression • Office of City Manager • Planning 15 City of Eden Prairie, Minnesota For the Year Ended December 31, 2012 Principal Officials Elected Officials: Mayor (Term expiration 12/31/14) Nancy Tyra-Lukens Council Member (Term expiration 12/31/12) Ron Case Council Member (Term expiration 12/31/12) Brad Aho Council Member (Term expiration 12/31/14) Sherry Butcher Wickstrom Council Member (Term expiration 12/31/14) Kathy Nelson Appointed Officials: City Manager Rick Getschow City Attorney Richard Rosow Departments: Chief of Police Rob Reynolds Community Development Director Janet Jeremiah Fire Chief George Esbensen Parks and Recreation Director Jay Lotthammer Public Works Director Robert Ellis 16 Financial I(DN- Expert advice. When you need it.s" INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 2012, and the related Notes to the Financial Statements, which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Expert advice. When you need it.s"' St.Cloud Twin Cities www.kdv.com 220 Park Avenue S. 3800 American Boulevard W. Certified Public Accountants P.O.Box 1304 Suite 1000 Toll Free Wealth Management St.Cloud,Minnesota Bloomington,Minnesota 877.912.7696 Payroll Services 56302 55431 Business Valuations Phone:320.251.7010 Phone:952.563.6800 Technology Help Desk Technology Services Fax:320.251.1784 Fax:952.563.6801 866.400.6426 18 KLYV Auditor's Responsibility (Continued) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of December 31, 2012, and the respective changes in financial position and where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Implementation of GASB 63 and GASB 65 As discussed in Note 16 to the financial statements, the City has adopted the provisions of the Governmental Accounting Standards Board(GASB) Statement No. 63,Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position and GASB No. 65, Items Previously Reported as Assets and Liabilities. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis,which follows this report letter, and the information on the City's modified approach to infrastructure reporting as well as the Schedule of Funding Progress—Other Post Employment Benefit Plan as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Eden Prairie's basic financial statements. The Introductory Section, combining and individual fund financial statements and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. 19 WV The combining and individual fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Report on Summarized Comparative Information We have previously audited the City's 2011 financial statements, and our report, dated May 8, 2012, expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2011, is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated May 6, 2013 on our consideration of the City of Eden Prairie's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Eden Prairie's internal control over financial reporting and compliance. 1664.4.. Pie CA---)4,-EA 4, 1/4-€"4-/- (-6.P- KERN, DEWENTER, VIERE, LTD. St. Cloud, Minnesota May 6, 2013 20 City of Eden Prairie, Minnesota Management's Discussion and Analysis As management of the City of Eden Prairie, this section of the City's comprehensive annual financial report presents a discussion and analysis of the City's financial activities during the fiscal year ended December 31, 2012. This discussion and analysis should be read in conjunction with the transmittal letter in the introductory section of this report. Financial Highlights The City as a Whole • The assets of the City exceeded liabilities by $392 million. Of this amount, $68 million (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors, $316 million is invested in capital assets, and $8 million is restricted. • The City's total net assets increased by $7,778,259 or 2%. The key factor in this increase was the issuance of crossover bonds in December. • The City's total long-term liabilities increased by $14,733,156 or 34% in comparison with the prior year. The key factor in this increase was also due to the issuance of crossover refunding bonds in December. Fund Financial Statements • The City's governmental funds reported combined ending fund balances of$74 million, an increase of $22,439,888 or 44% in comparison with the prior year. The changes in fund balance can be contributed to changes to various funds including the following: • Decrease in fund balance of $59,149 in the General fund due to maintaining the City's fund balance policy of maintaining adequate working capital for the first six months of next year and providing for budget stabilization. • Increase in fund balance of$4,685,252 in the Capital Improvement Maintenance fund, of which details can be found in the "Other Major Funds" section. • Decrease in fund balance of$492,390 in the Public Improvement Construction fund due mainly to the Mitchell Road South of CSAH #1 construction project. This project will be funded primarily with Assessments and State aid. • Increase in fund balance of$8,788,718 in the Shady Oak Road North fund due to the collection of State Aid money and bond proceeds for the project. • Other governmental funds had an overall increase in fund balance of$9,474,588 due mainly to the following increases and decreases: • Decrease in fund balance of$1,269,977 in the HRA Lease Revenue 2002 fund due to planned use of fund balance to repay debt. • Increase in fund balance of$4,915,838 in the General Obligation bonds 2005C fund due to the issuance of G.O. Refunding Crossover Bonds 2012A. 21 City of Eden Prairie, Minnesota Management's Discussion and Analysis • Increase in fund balance of$2,995,211 in the General Obligation bonds 2006B fund due to the issuance of G.O. Refunding Crossover Bonds 2012B. • Increase in fund balance of$307,783 in the Park Improvement fund due to park dedication fees which will be used for future planned project expenses. • Decrease in fund balance of $1,557,003 in the CIP Pavement Mgmt fund due to planned project expenses. • Increase in fund balance of$766,591 in the Project fund due to planned project expenses. • Decrease in fund balance of$734,045 in the Parks Referendum fund due to planned project expenses. • Increase in fund balance of $264,090 in the Economic Development fund due to planned project expenses. • Increase in fund balance of $584,434 in the Transportation fund due to a transfer in from Shady Oak Road North fund. • Increase in fund balance of$3,310,022 in the Shady Oak Road South fund due to the issuance of General Obligation Improvement Bonds 2012C. • Approximately 69% of the combined fund balances in the governmental funds is unrestricted and therefore available to meet the City's current and future needs. Using This Annual Report This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City's finances. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. 22 City of Eden Prairie, Minnesota Management's Discussion and Analysis Reporting the City as a Whole The Statement of Net Position and the Statement of Activities One of the most important questions asked about the City's finances is "Is the City as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City's net assets and changes in them. You can think of the City's net assets - the difference between assets and liabilities - as one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net assets are one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City's property tax base and the condition of the City's roads, to assess the overall health of the City. In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities: • Governmental Activities - Most of the City's basic services are reported here, including general government, public safety, public works, and parks and recreation. Property taxes, charges for services, and capital grants and contributions finance most of these activities. • Business-type Activities - The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City's utility system (Water, Sewer and Storm Drainage Fund) and liquor operations are reported here. Reporting the City's Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds - not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain grants and other money. The City's two kinds of funds - governmental and proprietary - use different accounting approaches. 23 City of Eden Prairie, Minnesota Management's Discussion and Analysis • Governmental funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. We describe the relationship between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation provided after the fund financial statements. • Proprietary funds - When the City charges customers for the services it provides - these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City of Eden Prairie maintains two different types of proprietary funds. • Enterprise funds are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows. • Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for activities pertaining to employee benefits, workers compensation, personal time off accruals, property insurance,facilities,fleet services,and information technology. The City as Trustee Reporting the City's Fiduciary Responsibilities All of the City's fiduciary activities are reported in separate Statement of Fiduciary Net Position. The City is fiduciary for resources collected and owed to others including developers and governmental agencies. We exclude these activities from the City's other financial statements because the City cannot use these assets to finance operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The accounting used for fiduciary funds is much like that used for proprietary funds. 24 City of Eden Prairie, Minnesota Management's Discussion and Analysis The City as a Whole The City's combined net assets increased from $384 million to $392 million and maintained its financial position. By far the largest portion of the City of Eden Prairie's net assets, $316 million (approximately 81%) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City of Eden Prairie uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net assets $7 million (approximately 2%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $68 million (approximately 17%), may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all of the categories of net assets reported for the government as a whole. The following schedule provides a summary of the City's net assets for the year ended December 31, 2012 (in thousands): Governmental Activities Business-Type activities Total 2012 2011 2012 2011 2012 2011 Current and Other $ 93,282 $ 70,599 $ 14,159 $ 11,115 $ 107,441 $ 81,714 Capital Assets 211.352 208.381 137.971 142.669 349.323 351.050 Total Assets 304,634 278,980 152,130 153,784 456,764 432,764 Long-Term Liabilities 54,346 39,216 4,216 4,613 58,562 43,829 Other Liabilities 5.044 3.707 1.415 1,321 6.459 5.028 Total Liabilities 59,390 42,923 5,631 5,934 65.021 48,857 Deferred Inflows 57 - - - 57 - Invested in Capital 182.116 178,022 134,141 138,398 316.257 316,420 Restricted 7,325 9,191 - - 7,325 9,191 Unrestricted 55.746 48,844 12.358 9.453 68.104 58.297 Total Net Position $ 245,187 $ 236,057 $ 146,499 $ 147,851 $ 391,686 $ 383,908 Key elements of these changes are shown on the following page. 25 City of Eden Prairie, Minnesota Management's Discussion and Analysis Governmental Activities Business-Type Total 2012 2011 2012 2011 2012 2011 Revenues: Program Revenues Charges for Services $ 11,917 $ 8,881 $ 29,283 $ 25,449 $ 41,200 $ 34,330 Operating Grants and Contributions 1,567 1,435 - - 1,567 1,435 Capital Grants and Contributions 7,127 4,470 53 415 7,180 4,885 General Revenues Property Taxes 32,144 31,310 - - 32,144 31,310 Tax Increment 3,353 3,139 - - 3,353 3,139 Grants and Contributions 837 752 - 4 837 756 Investment Income 187 260 36 35 223 295 Gain on sale of Capital Assets 34 122 - - 34 122 Total Revenues 57,166 50,369 29,372 25,903 86,538 76,272 Expenses: General Government - 9,264 - - - 9,264 Administration 4,008 - - - 4,008 - Community Development 6,251 - - - 6,251 - Public Safety - 17,538 - - - 17,538 Police 12,414 - - - 12,414 - Fire 5,647 - - - 5,647 - Public Works 8,226 7,666 - - 8,226 7,666 Parks and Recreation 10,815 9,617 - - 10,815 9,617 Interest on Long Term Debt 1,845 1,209 - - 1,845 1,209 Water - - 9,571 8,162 9,571 8,162 Sewer - - 6,685 6,671 6,685 6,671 Storm - - 2,051 1,915 2,051 1,915 Liquor - - 11,247 10,782 11,247 10,782 Total Expenses 49,206 45,294 29,554 27,530 78,760 72,824 Changes in Net Position Before Transfers 7,960 5,075 (182) (1,627) 7,778 3,448 Internal Transfers 1,170 1,270 (1,170) (1,270) - - Change in Net Assets 9,130 6,345 (1,352) (2,897)r 7,778 3,448 Net Position, January 1 236,057 229,712 147,851 143,532 383,908 ' 373,244 Prior Period Adjustment - - - 7,216 - 7,216 Net Position, December 31 $ 245,187 $ 236,057 $ 146,499 $ 147,851 $ 391,686 $ 383,908 26 City of Eden Prairie, Minnesota Management's Discussion and Analysis Governmental Activities Revenue by Source Charges for Other Services 21 2% Property Taxes and Grants and Tax Increment 62% Contributions 15% • For the year, property taxes totaled $32,144,443 which is an increase of $834,303 or 3% from 2011. About $500,000 of the increase is related to the market value homestead credit. The City was able to add this to the general fund since there is no longer the risk of not receiving the funds. The State Legislature changed the program from a tax credit on tax dollars paid to tax exclusion on tax capacity. • Charges for services increased by$3,035,681 or 34% from 2011. This was due mainly to increased building permits and fees and increased revenue at the community center for memberships and facilities rentals. • Operating grants and contributions increased by$131,944 or 9% from 2011. This was mainly due to the Community Development Block Grant. • Capital grants and contributions increased by $2,657,326 or 59% from 2011. This was due mainly to the DEED grant, and state street aid received for the Shady Oak Road North construction project. 27 City of Eden Prairie, Minnesota Management's Discussion and Analysis Expenses by Program Parks & Other Administration recreation 4% 8% Community 22% Development __-- — 13% Public works Police 25% 170 o Fire 11% Expenses and Program Revenues -Governmental Activities (in Thousands) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 FG ri00 m Nay oev P°\`Ge `Pub\�G�°c.d Ce°Cea�\O�9k Pa.C\c eCm debt U s ��ee °r\O •expenses ■program revenue 28 City of Eden Prairie, Minnesota Management's Discussion and Analysis Business-type Activities For the business-type activities, charges for services accounts for 99% of revenues. The Sewer Fund and Storm Drainage Fund had a negative change to net position of$1,027,271, and $584,264 respectively. In 2010 the City had a comprehensive utility rate study completed and in 2011,the City implemented a new utility rate structure. The new rate structure and future rate changes should eliminate future deficits. Expenses and Program Revenues - Business-type Activities (in Thousands) $14,000 - $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 - $0 Water Sewer Storm Liquor ■Expenses ■Program revenue 29 City of Eden Prairie, Minnesota Management's Discussion and Analysis The City's Funds The General fund is the chief operating fund of the City of Eden Prairie. The General fund had positive financial performance and the fund balance decreased by $59,149. The table below reflects the changes to the City's General fund balance. 2012 2011 Difference Fund Balance: Nonspendable $ 52, 190 $ 18,266 $ 33,924 Unassigned Budget Stabilization 5,893,437 5,751,776 141,661 Working Capital 15,104,613 15,252,553 (147,940) Unassigned 71,000 157,794 (86,794) Total Fund Balance $ 21,121,240 $ 21,180,389 $ (59,149) Nonspendable Balances The amounts classified as nonspenable consist of amounts that are not in spendable form, such as prepaid assets. Unassigned Balances The unassigned fund balance consists of the budget stabilization balance and the working capital balance. Budget Stabilization In compliance with City policy, $3,928,959 or 10% of the 2013 budget was maintained for budget stabilization to be used for emergencies and maintenance of the City's Aaa bond rating. Also, $1,964,478 or 5% of the 2013 budget was maintained for budget balancing to be used for short term volatility in the City's finances. Working Capital In compliance with City policy, 50% of the next year's tax levy or $14,714,163 is maintained for working capital. This amount represents the amount needed to fund operations for the first six months of the year. The City receives a tax settlement in December that funds operations until the next settlement in June of the next year. An additional$390,450 was assigned to cover the planned 2013 budget deficit. 30 City of Eden Prairie, Minnesota Management's Discussion and Analysis Other Major Funds The General Obligation Improvement Revolving 2005B fund increased by$42,869 in 2012. The Capital Improvement Maintenance fund increased by $4,685,252 in 2012. Revenue of$1,807,857 was collected which includes the tax levy, special assessments, building rental income, contributions, property insurance and workers comp dividends and investment income. The costs for the year pertained to the Round Lake Play Area renovation, various park maintenance projects, salt storage facility and police/fire enhancements. During the year, $1,800,000 was transferred in from the CIP Pavement Management fund due to the Pavement Management fund now receiving franchise revenue. The fund also received $3,383,719 from the General fund due to positive operating results. The final use of these funds will be considered when the 2014 budget is completed. The Public Improvement Construction fund decreased by $492,390 in 2012. Special Assessments of $349,523 was collected. The costs for the year pertain to the Mitchell Road and Valley View Road projects. As of December 31, 2012, the fund had a negative fund balance of$3,457,519. The deficit will be reduced with the collection of special assessments and state aid. The Shady Oak Road North fund increased by $8,788,718 in 2012. In December the City issued $10,250,000 of General Obligation Improvement Bonds. This fund also received $4,903,514 of State Aid. $4,150,000 of State Aid was transferred out to the Transportation fund and Shady Oak South fund. The Shady Oak Road North project will reconstruct Shady Oak Road from Rowland Road through the Highway 62 interchange. This project should substantially be completed in 2013. The City's proprietary funds provide the same type of information found in the government-wide financial statements,but in more detail. Water revenue through December 31, 2012 totaled $8,610,954 which is an increase of$1,435,756 or 20% from 2011 due to the following: • Sales increased by approximately$187,000 due to increased tier rates, $193,000 due to the increase in the fixed charge, and$1,100,000 due to the increase in water use. • Access charges increased by $724,480 due mainly to the United Health development and CH Robinson. Sewer revenue through December 31, 2012 totaled $5,090,600 which is an increase of$451,899 or 10% from 2011 due to the following: • Sales increased by approximately $245,000 due to the rate increase and $193,000 due to the increase in the fixed charge. Rates were increased from $2.35 to $2.50 while consumption remained consistent from 2011. 31 City of Eden Prairie, Minnesota Management's Discussion and Analysis • Access charges increased by $230,370 due mainly to the United Health development and CH Robinson. Storm Drainage revenue through December 31, 2012 totaled $1,259,324 which is an increase of$217,192 or 21% from 2011. The increase is due to the rate increase. The liquor operations had a successful year and the operations transferred $1,063,557 to the Capital Improvement Maintenance Fund. Sales totaled$12,101,470 which is an increase of$554,445 or 5% over 2011. Gross margins are at 25.5%which compare favorably to last year. Budgetary Highlights The General fund had positive operating results. Total revenues equaled $41,061,795 or 110% of the amount budgeted. The positive performance is due to conservative budgeting including a 2% allowance for uncollectible taxes, positive development revenue, revenues collected from the Community Center and delinquent payments received on revenue bond fees. Other items had positive and negative variances. Total expenditures equaled $38,085,073 or 99% of the budget. All departments except Fire and Parks and Recreation have spent less than 100% of the amounts budgeted. Parks and Recreation has spent 102% of their budget but they have collected 109% of the amount budget for revenue. Capital Assets and Debt Administration Capital Assets At the end of 2012,the city had$349 million invested in capital assets. Major capital assets added during the current fiscal year by fund include the following: Significant Projects Amount 5010 Park Improvement Round Lake Skate Park $ 285,732 5046/5140 Improvement Projects Mitchell Road (S of CSAH #1) 631,132 5060 Capital Maintenance & Investment Round Lake Play Area Renovation 1,560,933 Strengthening of Salt Storage Facility 165,710 5080 CIP Trails Bearpath/Riley Lake Trail 334,545 7050-Water Capital Chemical Feed Systems Controls 660,878 Watermain Replacement PCD 208,247 8450 Facilities Capital Internal Service Fund Replace Rink 2 Roof 437,653 32 City of Eden Prairie, Minnesota Management's Discussion and Analysis Capital Assets (net of depreciation, in thousands) Governmental Activities Business-type Activities Total 2012 2011 2012 2011 2012 2011 Land & Land Improv. $ 32,434 $ 32,241 $ 746 $ 751 $ 33,180 $ 32,992 Infrastructure 120,196 117,280 - - 120,196 117,280 Work in Progress 12,731 13,018 1,743 1,790 14,474 14,808 Distribution System - - 99,355 102,592 99,355 102,592 Buildings 37,565 38,365 32,474 33,810 70,039 72,175 Leasehold Improvements 34 40 659 612 693 652 Machinery& Equipment 925 1,188 2,670 2,931 3,595 4,119 Autos 3,785 3,748 277 115 4,062 3,863 Other Assets 3,682 2,501 47 68 3,729 2,569 Total $ 211,352 $ 208,381 $ 137,971 $ 142,669 $ 349,323 $ 351,050 The City has chosen to maintain infrastructure using the modified approach. This means the City does not depreciate the cost of infrastructure but maintains the system at a "good condition" level or higher. Additional information on the modified approach can be found in Note 1 of this report and additional information on the City's capital assets can be found in Note 4 of this report. The City's policy is to achieve an average rating of good (55-69) for all streets and trails. In the summer of 2010, the City conducted a physical condition assessment. This assessment will be performed every three years. As of December 31, 2010, the City's infrastructure system was rated at a Pavement Condition Index (PCI) of 81.1%, which is higher than the City's policy level. The City's infrastructure are constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun's ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short- term maintenance activities such as pothole patching, crack sealing, seal coating, and overlaying. The City expended $2,172,757 on infrastructure maintenance for the year ending December 31, 2012. These expenditures delayed deterioration; however, the overall condition of the system was not improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures required maintaining the City's infrastructure at the average PCI rating of good is approximately$1,661,000. 33 City of Eden Prairie, Minnesota Management's Discussion and Analysis Debt At year-end, the City had approximately $59 million in bonds and other long-term liabilities outstanding versus $43 million last year. During the year,the City issued the following debt: • $5,110,000 G.O. Refunding Bonds 2012A to refund the G.O. Bonds 2005C • $3,170,000 G.O. Refunding Bonds 2012B to refund the G.O. Bonds 2006B • $10,250,000 G.O. Improvement Bonds 2012C for the Shady Oak Road North project Refer to Note 10 in the Notes to Financial Statements for a detailed schedule showing the City's long- term debt activity. Economic Factors and Next Year's Budgets The City's elected officials consider many factors when adopting the budget and determining fees for service and fees that will be charged for the business-type activities. These factors include service levels, the tax impact on the median value home, commercial/industrial and household growth, and inflation. Currently, the 2013 general fund budgeted appropriations are $39,289,585 which is an increase of $944,411 or 3% from the 2012 budget. Budgeted revenues less expenditures total ($390,451). The City plans to use fund balance for the difference. The City will soon start reviewing the plans for the 2014 budget and work on a plan to more closely balance the budget. Contacting the City's Financial Management This financial report is designed to provide a general overview of the City's finances for those interested in the government's finances. If you have questions about this report or need additional financial information, contact the Finance Division at City of Eden Prairie, 8080 Mitchell Road, Eden Prairie, MN 55344. 34 Government - wide Financial Statements City of Eden Prairie,Minnesota Statement of Net Position December 31,2012 Primary Government Governmental Business-type Activities Activities Total ASSETS Cash and Cash Equivalents $ 68,949,345 $ 8,817,401 $ 77,766,746 Receivables Accounts 969,948 2,766,283 3,736,231 Interest 96,850 10,075 106,925 Due From Other Governments 103,460 - 103,460 Unremitted Taxes 129,280 - 129,280 Delinquent Taxes 173,224 - 173,224 Unremitted Special Assessments 33,000 9,685 42,685 Delinquent Special Assessments 13,247 323,670 336,917 Special Assessments 6,894,262 443,538 7,337,800 Unavailable Special Assessments 507,238 296,367 803,605 Inventories 126,553 1,165,354 1,291,907 Prepaid Items 232,707 326,695 559,402 Land Held for Resale 537,000 - 537,000 Restricted Cash and Cash Equivalents 14,515,711 - 14,515,711 Capital Assets Nondepreciable Land 22,006,728 656,356 22,663,084 Infrastructure 120,196,112 - 120,196,112 Work in Progress 12,730,556 1,743,400 14,473,956 Depreciable Buildings, Property and Equipment, Net 56,418,968 135,571,076 191,990,044 Total Assets 304,634,189 152,129,900 456,764,089 LIABILITIES Accounts and Contracts Payable 2,707,342 1,119,229 3,826,571 Salaries Payable 805,061 142,117 947,178 Interest Payable 583,755 8,691 592,446 Due to Other Governments 367,917 141,887 509,804 Unearned Revenue 579,844 3,318 583,162 Net OPEB Due in More Than One Year 847,880 141,017 988,897 Bonds Payable Due Within One Year 4,870,000 430,000 5,300,000 Due in More Than One Year 46,566,770 3,399,969 49,966,739 Capital lease payable Due Within One Year 42,019 - 42,019 Due in More Than One Year 132,700 - 132,700 Compensated Absences Due Within One Year 962,227 124,867 1,087,094 Due in More Than One Year 924,493 119,968 1,044,461 Total Liabilities 59,390,008 5,631,063 65,021,071 DEFERRED INFLOWS OF RESOURCES Refunding of Debt 57,182 - 57,182 Total Deferred Inflows of Resources 57,182 - 57,182 NET POSITION Net Investment in Capital Assets 182,115,707 134,140,863 316,256,570 Restricted for Perpetual Care, Nonexpendable 135,179 - 135,179 Restricted for Debt Service 7,189,520 - 7,189,520 Unrestricted 55,746,593 12,357,974 68,104,567 Total Net Position $ 245,186,999 $ 146,498,837 $ 391,685,836 The notes to financial statements are an integral part of this statement 36 City of Eden Prairie, Minnesota Statement of Activities For the Year Ended December 31, 2012 Program Revenue Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTIONS/PROGRAMS Primary Government Governmental Activities Administration $ 4,008,338 $ 1,695,035 $ - $ - Community Development 6,251,288 154,858 624,373 500,000 Police 12,413,470 1,338,079 518,048 81,917 Fire 5,646,926 3,450,431 328,245 - Public Works 8,226,283 518,365 68,865 6,447,053 Parks and Recreation 10,815,390 4,759,919 27,734 98,056 Interest on Long Term Debt 1,844,799 - - - Total Governmental Activities 49,206,494 11,916,687 1,567,265 7,127,026 Business-Type Activities Water 9,570,579 9,920,853 - 9,639 Sewer 6,685,442 5,654,186 - - Storm 2,051,178 1,327,159 - 43,765 Liquor 11,246,624 12,381,069 - - Total Business-Type Activities 29,553,823 29,283,267 - 53,404 Total Primary Government $ 78,760,317 $ 41,199,954 $ 1,567,265 $ 7,180,430 General Revenues Taxes Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Tax Increment Gain on Sale of Capital Asset Grants and Contributions Not Restricted to Specific Programs Investment Income Transfers Total General Revenues and Transfers Change in Net Position Net Position - Beginning Net Position - Ending The notes to financial statements are an integral part of this statement 37 Net (Expense) Revenue and Changes in Net Position Governmental Business-type Activities Activities Total $ (2,313,303) $ - $ (2,313,303) (4,972,057) - (4,972,057) (10,475,426) - (10,475,426) (1,868,250) - (1,868,250) (1,192,000) - (1,192,000) (5,929,681) - (5,929,681) (1,844,799) - (1,844,799) (28,595,516) - (28,595,516) - 359,913 359,913 - (1,031,256) (1,031,256) - (680,254) (680,254) - 1,134,445 1,134,445 (217,152) (217,152) (28,595,516) (217,152) (28,812,668) 29,135,482 - 29,135,482 3,008,961 - 3,008,961 3,353,556 - 3,353,556 33,848 - 33,848 836,646 - 836,646 186,676 35,758 222,434 1,170,364 (1,170,364) - 37,725,533 (1,134,606) 36,590,927 9,130,017 (1,351,758) 7,778,259 236,056,982 147,850,595 383,907,577 $ 245,186,999 $ 146,498,837 $ 391,685,836 The notes to financial statements are an integral part of this statement 38 Fund Financial Statements CITY OF EDEN PRAIRIE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31,2012 Page 1 of 2 Debt Service Capital Projects General Obligation Improv. Capital Revolving Improvement General 2005E Maintenance ASSETS Cash and Investments $ 21,921,477 $ 411,361 $ 9,768,346 Receivables Accounts 445,719 - 13,551 Interest 25,073 838 13,237 Due From Other Governments 63,371 - - Unremitted Taxes 116,016 - 787 Delinquent Taxes 172,682 - 542 Unremitted Special Assessments - - 190 Delinquent Special Assessments 999 - 3,734 Deferred Special Assessments - 1,772,908 25,385 Special Deferred Special Assessments - - 123,155 Due From Other Funds - - 3,407,273 Prepaid Items 52,190 - - Land Held for Resale - - - Cash and Investments With Escrow Agent - 1,686,830 _ - Total Assets $ 22,797,527 $ 3,871,937 $ 13,356,200 LIABILITIES Accounts and Contracts Payable $ 590,949 $ - $ 129,391 Salaries Payable 724,599 - - Interest Payable - - - Due to Other Governments 71,823 - - Due to Other Funds - - - Unearned Revenue 115,235 - 80,072 Total Liabilities 1,502,606 - 209,463 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes 172,682 - 542 Unavailable Revenue-Special Assessments 999 1,772,908 152,274 Total Deferred Inflows of Resources 173,681 1,772,908 152,816 FUND BALANCES Nonspendable 52,190 - - Restricted - 2,099,029 - Assigned - - 12,993,921 Unassigned 21,069,050 - - Total Fund Balance 21,121,240 2,099,029 12,993,921 Total Liabilities, Deferred Inflows of Resources,and Fund Balance $ 22,797,527 $ 3,871,937 $ 13,356,200 The notes to financial statements are an integral part of this statement 40 CITY OF EDEN PRAIRIE, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31,2012 Page 2 of 2 Capital Projects Public Shady Oak Other Total Improvement Road Governmental Governmental Construction North Funds Funds ASSETS Cash and Investments $ - $ 9,677,048 $ 19,168,898 $ 60,947,130 Receivables Accounts - - 487,699 946,969 Interest - - 46,910 86,058 Due From Other Governments - - 38,839 102,210 Unremitted Taxes - - 12,477 129,280 Delinquent Taxes - - - 173,224 Unremitted Special Assessments 32,544 - 266 33,000 Delinquent Special Assessments 8,503 - 11 13,247 Deferred Special Assessments 1,264,037 - 3,831,932 6,894,262 Special Deferred Special Assessments 263,322 - 120,761 507,238 Due From Other Funds - - 1,085,312 4,492,585 Prepaid Items - - 530 52,720 Land Held for Resale - - 537,000 537,000 Cash and Investments With Escrow Agent - - 12,828,881 14,515,711 Total Assets $ 1,568,406 $ 9,677,048 $ 38,159,516 $ 89,430,634 LIABILITIES Accounts and Contracts Payable $ 78,297 $ 1,046,302 $ 222,088 $ 2,067,027 Salaries Payable - - 8,740 733,339 Interest Payable 4,493 1,156 1,166 6,815 Due to Other Governments - 148 9,748 81,719 Due to Other Funds 3,407,273 - 1,085,312 4,492,585 Unearned Revenue - - 308,243 503,550 Total Liabilities 3,490,063 1,047,606 1,635,297 7,885,035 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - 173,224 Unavailable Revenue-Special Assessments 1,535,862 - 3,952,704 7,414,747 Total Deferred Inflows of Resources 1,535,862 - 3,952,704 7,587,971 FUND BALANCES Nonspendable - - 537,530 589,720 Restricted - - 20,182,060 22,281,089 Assigned - 8,629,442 12,702,687 34,326,050 Unassigned (3,457,519) - (850,762) 16,760,769 Total Fund Balance (3,457,519) 8,629,442 32,571,515 73,957,628 Total Liabilities, Deferred Inflows of Resources,and Fund Balance $ 1,568,406 $ 9,677,048 $ 38,159,516 $ 89,430,634 The notes to financial statements are an integral part of this statement 41 City of Eden Prairie, Minnesota Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2012 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balance - Governmental Funds $ 73,957,628 1. Capital assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of Capital Assets 237,841,272 Less Accumulated Depreciation (28,777,092) 2. Long term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Bond Principal Payable (51,493,952) Capital lease (174,719) 3. Taxes and special assessment receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are 7,587,971 4. Governmental funds do not report a liability for accrued interest on long-term debt (576,940) until due and payable. 5. Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Governmental Activities in the Statement of Net Position. 6,822,831 Net Position - Governmental Activities $ 245,186,999 The notes to financial statements are an integral part of this statement 42 City of Eden Prairie, Minnesota Statement of Revenues,Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2012 Page 1 of 2 Debt Service Capital Projects General Obligation Improv. Capital Revolving Improvement General 2005E Maintenance REVENUES General Property Taxes $ 28,927,115 $ - $ 92,689 Special Assessments - 238,532 556,960 Penalties and Interest 51,858 - - Licenses and Permits 5,127,177 - - Intergovernmental Revenue 1,104,257 - - Charges for Services 4,394,544 - - Fines and Forfeits 600,076 - - Investment Income 60,142 1,495 41,172 Interest on Escrow Fund - 3,525 - Rental - - 770,146 Other 796,626 - 346,890 Total Revenues 41,061,795 243,552 1,807,857 EXPENDITURES Current Administration 3,634,743 - - Community Development 2,054,986 - - Police 12,287,340 - - Fire 5,190,539 - - Public Works 5,293,287 - - Parks and Recreation 9,577,634 - - Interest on Interfund Borrowing - - - Capital Outlay Administration - - 10,202 Police - - 23,407 Public Works - - 165,710 Parks and Recreation - - 1,882,834 Debt Service Principal 45,603 115,000 - Interest 941 80,098 - Bond Issuance Cost - 4,610 - Fiscal Agent Fees - 975 - Total Expenditures 38,085,073 200,683 2,082,153 Excess of Revenues Over(Under)Expenditures 2,976,722 42,869 (274,296) OTHER FINANCING SOURCES(USES) Issuance of Debt 220,322 - - Issuance of Refunding Bonds - - - Premium - - - Sale of Capital Assets - - - Transfers In 283,108 - 6,929,548 Transfers Out (3,539,301) - (1,970,000) Total Other Financing Sources(Uses) (3,035,871) - 4,959,548 Net Change in Fund Balances (59,149) 42,869 4,685,252 Fund Balance(Deficit)-Beginning 21,180,389 2,056,160 8,308,669 Fund Balance(Deficit)-Ending $ 21,121,240 $ 2,099,029 $ 12,993,921 The notes to financial statements are an integral part of this statement 43 City of Eden Prairie, Minnesota Statement of Revenues,Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31,2012 Page 2 of 2 Capital Projects Public Shady Oak Other Total Improvement Road Governmental Governmental Construction North Funds Funds REVENUES General Property Taxes $ - $ - $ 6,561,340 $ 35,581,144 Special Assessments 349,523 - 740,197 1,885,212 Penalties and Interest - - - 51,858 Licenses and Permits - - 504,352 5,631,529 Intergovernmental Revenue - 4,903,514 1,360,787 7,368,558 Charges for Services - - - 4,394,544 Fines and Forfeits - - 3,050 603,126 Investment Income - - 59,809 162,618 Interest on Escrow Fund - - 29,514 33,039 Rental - - 66,500 836,646 Other - - 488,963 1,632,479 Total Revenues 349,523 4,903,514 9,814,512 58,180,753 EXPENDITURES Current Administration - - - 3,634,743 Community Development - 4,173,460 6,228,446 Police - 74,839 12,362,179 Fire - - - 5,190,539 Public Works - - 155,506 5,448,793 Parks and Recreation - - 13,984 9,591,618 Interest on Interfund Borrowing 9,967 6,654 13,020 29,641 Capital Outlay Administration - - - 10,202 Police - 14,581 37,988 Public Works 832,158 2,359,626 2,852,129 6,209,623 Parks and Recreation - - 418,096 2,300,930 Debt Service Principal - - 4,255,000 4,415,603 Interest - - 1,113,078 1,194,117 Bond Issuance Cost 73,375 163,099 241,084 Fiscal Agent Fees - - 7,612 8,587 Total Expenditures 842,125 2,439,655 13,254,404 56,904,093 Excess of Revenues Over(Under)Expenditures (492,602) 2,463,859 (3,439,892) 1,276,660 OTHER FINANCING SOURCES(USES) Issuance of Debt - 10,250,000 - 10,470,322 Issuance of Refunding Bonds - - 8,280,000 8,280,000 Premium - 224,859 380,890 605,749 Sale of Capital Assets - - 450,000 450,000 Transfers In 3,210 - 6,609,580 13,825,446 Transfers Out (2,998) (4,150,000) (2,805,990) (12,468,289) Total Other Financing Sources(Uses) 212 6,324,859 12,914,480 21,163,228 Net Change in Fund Balances (492,390) 8,788,718 9,474,588 22,439,888 Fund Balance(Deficit)-Beginning (2,965,129) (159,276) 23,096,927 51,517,740 Fund Balance(Deficit)-Ending $ (3,457,519) $ 8,629,442 $ 32,571,515 $ 73,957,628 The notes to financial statements are an integral part of this statement 44 City of Eden Prairie, Minnesota Reconciliation of the Statement of Revenues and Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31,2012 Total net change in fund balances-governmental funds $ 22,439,888 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: 1. Capital outlays are reported in Governmental Funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful life's as depreciation expense. Capital Outlays 6,043,314 Depreciation Expense (3,191,039) The net effect of the disposal of capital assets Contributed to Enterprise funds (188,193) Disposals (2,687,926) Depreciation on Disposals 2,106,887 2. Principal payments of long-term debt consumes the current financial resources of Governmental Funds, However they have no effect on Net Position. 4,415,603 3. Interest on long-term debt in the statement of activities differs from the amount reported in the Governmental Funds because interest is recognized as an expenditure in the funds when it is due thus requires use of current financial resources. In the Statement of Activities, however interest expense is recognized as the interest accrues, regardless of when it is due. (502,085) 4. The issuance of long-term debt provides current financial resources to Governmental Funds and has no effect on Net Position. These amounts are reported in the Governmental Funds as a source of financing. These amounts are not shown as revenue in the Statement of Activities, but rather constitute long-term liabilities in the Statement of Net Position. (18,750,322) 5. Governmental Funds report debt issuance premiums, discounts and issuance costs as another financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the Government-wide financial statements. Premiums (605,749) Amortization of Premiums/Discounts 25,893 6. Deferred gain or loss on refunded bonds are amortized on the Statement of Activities, whereas Governmental Funds do not recognize these costs. Amortization of Deferred Gain 75,181 7. Taxes and special assessments receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds. (1,040,256) 8. Internal Service Funds are used by management to charge the costs of employee benefits to individual funds.The net revenue of these activities is reported in Governmental Activities. 988,821 Change in Net Position -Governmental Activities $ 9,130,017 The notes to financial statements are an integral part of this statement 45 City of Eden Prairie,Minnesota General Fund Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended December 31,2012 With Comparative Actual Amounts For the Year Ended December 31,2011 2012 2011 Budget Budget Variance Original Final Actual Over/(Under) Actual REVENUES Taxes and Special Assessments General Property Taxes $ 28,726,271 $ 28,726,271 $ 28,927,115 $ 200,844 $ 27,721,271 Penalty and Interest 50,000 50,000 51,858 1,858 42,470 Total Taxes and Special Assessments 28,776,271 28,776,271 28,978,973 202,702 27,763,741 Licenses and Permits Liquor,Beer and Wine Licenses 321,000 321,000 304,229 (16,771) 304,896 Business Licenses 28,575 28,575 36,127 7,552 18,840 Dog Registration Licenses 19,900 19,900 20,265 365 18,189 Building Permits and Fees 1,398,400 1,398,400 3,786,592 2,388,192 2,094,901 Cable TV 754,000 754,000 812,372 58,372 775,525 Other Permits 152,250 152,250 167,592 15,342 150,942 Total Licenses and Permits 2,674,125 2,674,125 5,127,177 2,453,052 3,363,293 Intergovernmental Revenue Police Pension Aid 431,000 431,000 415,320 (15,680) 435,160 Fire Relief Association Aid 300,000 300,000 291,468 (8,532) 286,728 State Street Aid 70,620 70,620 68,865 (1,755) 68,865 Police Training 20,000 20,000 21,254 1,254 24,238 Grants - - 140,668 140,668 164,072 PERA Aid 52,384 52,384 52,384 - 52,384 School Liaison 114,298 114,298 114,298 - 111,950 Total Intergovernmental Revenue 988,302 988,302 1,104,257 115,955 1,143,397 Charges for Services Public Safety 117,600 117,600 83,890 (33,710) 95,023 Recreation Community Center 2,924,403 2,924,403 3,309,449 385,046 3,113,551 Organized Athletics 321,645 321,645 291,421 (30,224) 313,416 Youth Programs 289,250 289,250 284,843 (4,407) 293,814 Oak Point Pool 99,073 99,073 113,978 14,905 98,987 Outdoor Center 89,300 89,300 55,271 (34,029) 50,358 Park Facilities 72,450 72,450 86,560 14,110 78,735 Arts Center 60,100 60,100 66,041 5,941 66,285 Senior Center 55,000 55,000 56,010 1,010 51,016 Arts 25,100 25,100 21,808 (3,292) 18,577 Special Events 16,500 16,500 1,641 (14,859) 10,462 Therapeutic Recreation 7,500 7,500 23,632 16,132 12,510 Total Recreation 3,960,321 3,960,321 4,310,654 350,333 4,107,711 Total Charges for Services 4,077,921 4,077,921 4,394,544 316,623 4,202,734 Fines and Forfeits 455,000 455,000 600,076 145,076 554,862 Investment Income 200,000 200,000 60,142 (139,858) 80,781 Other Revenue 220,000 220,000 796,626 576,626 256,957 Total Revenues $ 37,391,619 $ 37,391,619 $ 41,061,795 $ 3,670,176 $ 37,365,765 The notes to financial statements are an integral part of this statement 46 City of Eden Prairie,Minnesota General Fund Statement of Revenues,Expenditures and Changed in Fund Balance-Budget and Actual For the Year Ended December 31,2012 Continued With Comparative Actual Amounts For year Ended December 31,2011 2012 2011 Budget Budget Variance Original Final Actual Over/(Under) Actual EXPENDITURES Current Administration Legislative $ 253,819 $ 253,819 $ 260,410 $ 6,591 $ 257,014 Office of the City Manager 334,576 352,076 330,865 (21,211) 330,072 Legal Counsel 450,000 450,000 443,046 (6,954) 440,440 City Clerk 264,055 288,055 242,595 (45,460) 113,084 Communications 519,682 534,202 528,118 (6,084) 526,022 Finance 736,031 736,031 732,719 (3,312) 698,551 Customer Service 429,825 429,825 369,917 (59,908) 419,364 Human Resources 758,684 758,684 708,480 (50,204) 669,193 Contingency 50,000 50,000 18,593 (31,407) 1,013 Total Administration 3,796,672 3,852,692 3,634,743 (217,949) 3,454,753 Community Development Assessing 943,266 943,266 924,059 (19,207) 910,300 Planning 529,960 529,960 526,400 (3,560) 539,757 Community Development Administration 163,571 171,571 181,669 10,098 166,633 Economic Development 110,812 110,812 104,451 (6,361) 108,620 Housing&Community Services 323,045 323,045 318,407 (4,638) 297,642 Total Community Development 2,070,654 2,078,654 2,054,986 (23,668) 2,022,952 Police 12,425,743 12,425,743 12,287,340 (138,403) 11,866,574 Fire Fire 3,778,555 3,795,438 3,946,683 151,245 3,678,862 Emergency Preparedness 36,877 36,877 30,156 (6,721) 31,350 Inspections 1,042,737 1,042,737 1,036,249 (6,488) 1,006,790 Public Safety Communications 174,488 174,488 177,451 2,963 197,016 Total Fire 5,032,657 5,049,540 5,190,539 140,999 4,914,018 Public Works Engineering 1,107,567 1,107,567 1,111,258 3,691 1,094,919 Street Maintenance 3,416,262 3,493,153 3,358,513 (134,640) 3,170,849 Street Lighting 890,498 890,498 823,516 (66,982) 861,311 Total Public Works 5,414,327 5,491,218 5,293,287 (197,931) 5,127,079 The notes to financial statements are an integral part of this statement 47 City of Eden Prairie,Minnesota General Fund Statement of Revenues,Expenditures and Changed in Fund Balance-Budget and Actual For the Year Ended December 31,2012 Continued With Comparative Actual Amounts For year Ended December 31,2011 2012 2011 Budget Budget Variance Original Final Actual Over/(Under) Actual EXPENDITURES(Continued) Current(Continued) Parks and Recreation Park Maintenance 3,551,340 3,551,340 3,566,576 15,236 3,293,239 Community Center 3,248,898 3,248,898 3,416,721 167,823 3,013,874 Youth Programs 400,850 400,850 377,832 (23,018) 388,128 Senior Center 376,899 376,899 382,268 5,369 356,704 Park Administration 365,234 365,234 372,043 6,809 395,048 Organized Athletics 276,113 276,113 246,008 (30,105) 245,358 Recreation Administration 271,222 271,222 278,915 7,693 263,480 Arts Center 212,662 212,662 226,793 14,131 192,658 Therapeutic Recreation 147,274 147,274 150,554 3,280 135,056 Outdoor Center 134,151 134,151 102,402 (31,749) 104,060 Oak Point Pool 130,359 130,359 121,139 (9,220) 126,857 Arts 99,426 99,426 109,615 10,189 127,777 Special Events 71,055 71,055 67,918 (3,137) 66,282 Parks Capital Outlay 49,500 49,500 82,532 33,032 30,566 Park Facilities 36,079 36,079 48,269 12,190 34,674 Beaches 34,019 34,019 28,049 (5,970) 31,787 Total Parks and Recreation 9,405,081 9,405,081 9,577,634 172,553 8,805,548 Debt Service Principal 35,920 35,920 45,603 9,683 42,751 Interest 4,120 4,120 941 (3,179) 2,102 Total Debt Service 40,040 40,040 46,544 6,504 44,853 Total Expenditures 38,185,174 38,342,968 38,085,073 (257,895) 36,235,777 Excess(Deficiency)of Revenues Over Expenditures (793,555) (951,349) 2,976,722 3,928,071 1,129,988 OTHER FINANCING SOURCES/(USES) Issuance of Debt - - 220,322 220,322 - Transfers In 270,000 270,000 283,108 13,108 294,171 Transfers Out (160,000) (160,000) (3,539,301) (3,379,301) (1,187,259) Total Other Financing Sources/(Uses) 110,000 110,000 (3,035,871) (3,145,871) (893,088) Net change in Fund Balance $ (683,555) $ (841,349) $ (59,149) $ 782,200 $ 236,900 Fund Balance,January 1 21,180,389 20,943,489 Fund Balance,December 31 $ 21,121,240 $ 21,180,389 The notes to financial statements are an integral part of this statement 48 CITY OF EDEN PRAIRIE,MINNESOTA PROPRIETARY FUNDS STATEMENT OF NET POSITION DECEMBER 31,2012 Governmental Activities Internal Water Sewer Storm Drainage Liquor Service Fund Fund Fund Fund Totals Fund ASSETS Current Assets: Cash and Investments $ 6,037,827 $ 1,308,099 $ 550,993 $ 920,482 $ 8,817,401 $ 8,002,215 Receivables: Accounts 1,354,459 1,098,463 311,911 1,450 2,766,283 22,979 Interest 5,765 2,194 938 1,178 10,075 10,792 Due From Other Governments - - - - - 1,250 Unremitted Special Assessments 6,703 2,982 - - 9,685 - Delinquent Special Assessments 317,092 6,578 - - 323,670 - Deferred Special Assessments 177,415 266,123 - - 443,538 - Special Deferred Special Assessments 118,547 177,820 - - 296,367 - Inventory 20,098 - - 1,145,256 1,165,354 126,553 Prepaid Items 9,187 288,047 125 29,336 326,695 179,987 Total Current Assets 8,047,093 3,150,306 863,967 2,097,702 14,159,068 8,343,776 Noncurrent Assets Capital Assets: Property,Plant and Equipment 129,521,234 79,537,428 41,801,960 3,310,168 254,170,790 2,573,425 Less Accumulated Depreciation (59,219,132) (37,476,352) (18,797,250) (707,224) (116,199,958) (285,241) Total Noncurrent Assets 70,302,102 42,061,076 23,004,710 2,602,944 137,970,832 2,288,184 Total Assets $ 78,349,195 $ 45,211,382 $ 23,868,677 $ 4,700,646 $ 152,129,900 $ 10,631,960 LIABILITIES Current Liabilities: Accounts Payable $ 267,579 $ 17,877 $ 42,066 $ 791,707 $ 1,119,229 $ 640,315 Salaries Payable 72,037 20,603 8,480 40,997 142,117 71,722 Interest Payable 6,992 1,699 - - 8,691 - Due to Other Governments 1,300 - - 140,587 141,887 286,198 Unearned Revenue - - - 3,318 3,318 76,294 Current Portion of Bonds Payable 350,000 80,000 - - 430,000 - Current Portion of Compensated Absences 69,651 15,408 8,459 31,349 124,867 962,227 Total Current Liabilities 767,559 135,587 59,005 1,007,958 1,970,109 2,036,756 Noncurrent Liabilities: NetOPEB 65,586 51,240 6,650 17,541 141,017 847,880 Bonds Payable 2,746,041 653,928 - - 3,399,969 - Compensated Absences 66,920 14,803 8,127 30,118 119,968 924,493 Total Noncurrent Liabilities 2,878,547 719,971 14,777 47,659 3,660,954 1,772,373 Total Liabilities 3,646,106 855,558 73,782 1,055,617 5,631,063 3,809,129 NET POSITION Net Investment in Capital Assets 67,206,061 41,327,148 23,004,710 2,602,944 134,140,863 2,288,184 Unrestricted 7,497,028 3,028,676 790,185 1,042,085 12,357,974 4,534,647 Total Net Position 74,703,089 44,355,824 23,794,895 3,645,029 146,498,837 6,822,831 Total Liabilities and Net Position $ 78,349,195 $ 45,211,382 $ 23,868,677 $ 4,700,646 $ 152,129,900 $ 10,631,960 The notes to financial statements are an integral part of this statement 49 CITY OF EDEN PRAIRIE,MINNESOTA PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED DECEMBER 31,2012 Governmental Activities- Internal Water Sewer Storm Drainage Liquor Service Fund Fund Fund Fund Total Fund SALES AND COST OF SALES Sales $ - $ - $ - $ 12,101,470 $ 12,101,470 $ - Cost of Sales - - - (9,014,543) (9,014,543) - Gross Profit - - - 3,086,927 3,086,927 - OPERATING REVENUE Sales 8,610,954 5,090,600 1,259,324 - 14,960,878 - Charges for Services - - - - - 14,505,046 Rental - - - 227,863 227,863 1,174,432 Other 14,480 4,900 - 42,295 61,675 - Total Operating Revenues 8,625,434 5,095,500 1,259,324 270,158 15,250,416 15,679,478 OPERATING EXPENSE Personal Services 2,202,882 664,244 213,786 1,043,801 4,124,713 5,084,707 Supplies Supplies 202,464 15,422 18,053 46,503 282,442 384,775 Motor Fuel - - - - - 531,583 Tires - - - - - 74,957 Chemicals 661,032 - - - 661,032 - Merchandise For Sale 49,431 - - - 49,431 - Contractual Services Contractual Services 1,177,309 130,235 741,100 176,902 2,225,546 1,860,448 Lime Residual Removal 240,641 - - - 240,641 - Insurance - - - 10,227 10,227 3,338,093 Janitorial Services/Cleaning Supplies 62,002 - - 17,390 79,392 932,350 LOGIS 41,514 41,514 - - 83,028 329,656 Process Control Services 141,091 18,388 - - 159,479 - Building Rent - - - 309,302 309,302 - Licenses,Permits,Taxes 168,429 115 858 71,287 240,689 192,741 Bank and Credit Card Fees 28,036 1,559 - 212,404 241,999 - Repairs and Maintenance 693,922 136,446 151,479 37,419 1,019,266 915,664 Utilities 631,729 3,800,654 732 72,200 4,505,315 1,023,475 User Charges 374,823 134,693 87,458 119,658 716,632 30,661 Total Operating Expenses 6,675,305 4,943,270 1,213,466 2,117,093 14,949,134 14,699,110 Operating Income(Loss)Before Depreciation 1,950,129 152,230 45,858 1,239,992 3,388,209 980,368 Depreciation 2,804,627 1,719,688 837,712 114,988 5,477,015 229,601 Operating Income(Loss)Before Nonoperating (854,498) (1,567,458) (791,854) 1,125,004 (2,088,806) 750,767 NONOPERATING REVENUE(EXPENSE) Grants 9,639 - - - 9,639 - Investment Income 27,822 3,985 1,043 2,908 35,758 21,443 Access Charges 1,061,540 323,020 - - 1,384,560 - Special Assessments 204,157 231,425 - - 435,582 - Interest (89,859) (22,221) - - (112,080) - Bond Issuance Cost 12,005 4,241 - - 16,246 - FiscalAgentFees (788) (263) - - (1,051) - Gain/Loss on Disposition of Capital Assets 16,274 - - - 16,274 164,888 Miscellaneous 1,443 - 67,835 9,441 78,719 50,323 Total Nonoperating Revenues(Expenses) 1,242,233 540,187 68,878 12,349 1,863,647 236,654 Income(Loss)Before Contributions and Transfers 387,735 (1,027,271) (722,976) 1,137,353 (225,159) 987,421 Contributions-from Governmental Activities 58,246 - 129,947 - 188,193 - Contributions-from Developers - - 43,765 - 43,765 - Transfers In - - - - - 1,400 Transfers(Out) (260,000) - (35,000) (1,063,557) (1,358,557) - Change in Net Position 185,981 (1,027,271) (584,264) 73,796 (1,351,758) 988,821 Net Position-Beginning 74,517,108 45,383,095 24,379,159 3,571,233 147,850,595 5,834,010 Net Position-Ending $ 74,703,089 $ 44,355,824 $ 23,794,895 $ 3,645,029 $ 146,498,837 $ 6,822,831 Net Changes in Net Position Reported Above (1,351,758) Amounts Reported for Business Type Activities in the Statement of Activities are Different Because: Transfers In of Capital Assets from Governmental Activities 188,193 Governmental Activities Contribution Revenue Reported Above (188,193) Change in Net Position of Business-Type Activities $ (1,351,758) The notes to financial statements are an integral part of this statement 50 City of Eden Prairie,Minnesota Proprietary Funds Statement of Cash Flows For the Year Ended December 31,2012 Page 1 of 2 Governmental Activities- Internal Water Sewer Storm Drainage Liquor Service Fund Fund Fund Fund Totals Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $ 8,310,037 $ 4,950,001 $ 1,155,849 $ 12,371,265 $ 26,787,152 $ 14,514,351 Payments to Vendors (4,394,646) (4,257,322) (934,999) (10,025,721) (19,612,688) (9,215,772) Payments to Employees (2,164,865) (649,644) (205,815) (1,036,051) (4,056,375) (4,729,308) Other Receipts 14,480 4,900 - - 19,380 1,174,432 Net Cash Provided(Used)By Operating Activities 1,765,006 47,935 15,035 1,309,493 3,137,469 1,743,703 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 25,363 4,665 2,028 3,438 35,494 25,838 Net Cash Provided(Used)By Investing Activities 25,363 4,665 2,028 3,438 35,494 25,838 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants 9,639 - - - 9,639 - Transfers in - - - - - 1,400 Transfers(Out) (260,000) - (35,000) (1,063,557) (1,358,557) - Net Cash Provided(Used)By Noncapital Financing Activities (250,361) - (35,000) (1,063,557) (1,348,918) 1,400 CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Contributions - - 43,765 - 43,765 - Acquisition and Construction of Capital Assets (394,251) (112,474) (81,863) (2,082) (590,670) (1,117,540) Proceeds From Sale of Equipment 16,274 - - - 16,274 164,888 Access Charges 1,061,540 323,020 - - 1,384,560 - Special Assessments 204,157 231,425 - - 435,582 - Principal Paid on Debt (345,000) (80,000) - - (425,000) - Interest and Fiscal Agent Paid on Debt (91,188) (22,651) - - (113,839) - Net Cash Provided(Used)By Capital Financing Activities 451,532 339,320 (38,098) (2,082) 750,672 (952,652) Net Increase(Decrease)in Cash and Cash Equivalents 1,991,540 391,920 (56,035) 247,292 2,574,717 818,289 Cash and Cash Equivalents,January 1 4,046,287 916,179 607,028 673,190 6,242,684 7,183,926 Cash and Cash Equivalents,December 31 $ 6,037,827 $ 1,308,099 $ 550,993 $ 920,482 $ 8,817,401 $ 8,002,215 51 City of Eden Prairie,Minnesota Proprietary Funds Statement of Cash Flows For the Year Ended December 31,2012 Page 2 of 2 Governmental Activities- Internal Water Sewer Storm Drainage Liquor Service Fund Fund Fund Fund Totals Fund RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES: Operating Income(Loss) $ (854,498)$ (1,567,458) $ (791,854) $ 1,125,007 $ (2,088,803)$ 750,767 Adjustments to Reconcile Operating Income(Loss) to Net Cash Provided(Used)by Operating Activities: Depreciation 2,804,627 1,719,688 837,712 114,988 5,477,015 229,598 Miscellaneous 1,443 - 67,835 9,441 78,719 50,323 (Increase)Decrease in Assets: Accounts Receivable (277,295) (129,022) (103,475) (514) (510,306) (1,511) Special Assessments Receivable (23,622) (11,577) - - (35,199) - Due From Other Governments - - - - - 1,041 Inventory 792 - - 49,182 49,974 (16,420) Prepaid Items (699) 26,402 (65) 945 26,583 266,489 Increase(Decrease)in Liabilities: Accounts Payable 78,032 (4,698) (3,089) 1,423 71,668 77,475 Salaries Payable 9,611 4,703 4,094 5,926 24,334 7,211 Unearned Revenue - - - 151 151 10,816 Due to Other Governments (1,791) - - 1,123 (668) 19,727 Net Other Post Employment Benefits 19,841 5,495 1,743 5,043 32,122 187,321 Compensated Absences 8,565 4,402 2,134 (3,222) 11,879 160,866 Net Cash Provided(Used)by Operating Activities $ 1,765,006 $ 47,935 $ 15,035 $ 1,309,493 $ 3,137,469 $ 1,743,703 Noncash Investing,Capital and Financing Activities: Contributions of Capital Assets from Governmental Activities $ 58,246 - $ 129,947 $ - $ 188,193 $ - 52 City of Eden Prairie, Minnesota Agency Funds Statement of Fiduciary Net Position December 31, 2012 Total ASSETS Cash and investments $ 1,477,291 Total assets $ 1,477,291 LIABILITIES Accounts payable $ 1,361,087 Due to other governments 116,204 Total liabilities $ 1,477,291 The notes to financial statements are an integral part of this statement 53 Notes to Financial Statements City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies Reporting Entity The City of Eden Prairie is a municipal corporation governed by an elected mayor and four-member council. The accompanying financial statements consist of the primary government and organizations for which the primary government is financially accountable. In addition,the primary government may determine through exercise of management's professional judgment that the inclusion of an organization that does not meet the financial accountability criteria is necessary in order to prevent the financial statements from being misleading. The criteria used to determine if the primary government is financially accountable for a potential component unit include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Blended Component Unit The Housing and Redevelopment Authority (H.R.A.) is a body organized and existing under the laws of the State of Minnesota. The Authority was established in 1980 by the City to carry out certain redevelopment projects within the City and is governed by the City Council and the Mayor. The H.R.A. has a December 31 year-end and does not issue financial statements. This unit is included within the H.R.A., H.R.A. Lease Revenue 2002, 3rd Rink Lease Revenue Bonds 2007A, H.R.A. Lease Revenue Refunding Bonds 2009A, and Economic Development funds. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities,which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, service or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 55 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) Measurement Focus,Basis of Accounting and Statement Presentation Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. The fiduciary fund financial statements include Agency funds,which utilize the accrual basis of accounting,but do not have a measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, interest and special assessments are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. 56 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) The City reports the following major governmental funds: • The General fund is the City's primary operating fund. It accounts for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service and capital projects. • The General Obligation Improvement Revolving 2005B fund accounts for the accumulation of tax revenues needed to repay bonds issued to pay for the construction at 212 and Charleson Road. • The Capital Improvement Maintenance fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City property. • The Public Improvement Construction fund accounts for proceeds of bonds sold and special assessments collected to finance street, drainage, and lateral utility construction within the City. • The Shady Oak Road North fund accounts for the accumulation of resources to be used for the reconstruction of Shady Oak Road from Rowland Road through the Highway 62 interchange. The City reports the following major proprietary funds: • The Water fund accounts for the operations of the City-owned water system. • The Sewer fund accounts for the operations of the City sewer service. • The Storm Drainage fund accounts for the operations of the City's storm drainage system. • The Liquor fund accounts for the operations of the City's three retail liquor stores and the operations of the City-owned Den Road building which is leased to City liquor operations and other tenants. Additionally,the city reports the following fund types: Internal Service funds: • The Health & Benefits fund accounts for the activities pertaining to health, dental, life and disability insurance. This fund also accounts for the employer's portion of pension, FICA and medicare contributions. • The Severance fund accounts for unused vacation and sick leave for governmental fund employees. • The Workers Compensation fund accounts for insurance payments and cost reimbursement from other departments. 57 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) • The Property Insurance fund accounts for insurance payments and cost reimbursement from other departments. • The Facilities fund accounts for the accumulation of resources to be used for the maintenance of the city's buildings. • The Fleet fund accounts for the accumulation of resources to be used for the purchase and maintenance of machinery and equipment for the City. • The Information Technology funds accounts for planning, designing and implementing information systems and cost reimbursement from other departments. Fiduciary funds: • Agency funds account for various deposits, collections and remittances of expenses for accumulating donations and contributions in the Escrow fund,WAFTA and MCES funds. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments in-lieu of taxes and other charges between the City's water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported from the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Cash and Investments Cash and investments, except for small amounts of cash on hand, are deposited in pooled accounts of the City. The City invests cash surpluses in these accounts; and investment earnings, as well as gains and losses on sales of securities, are allocated to the various funds on the basis of average cash balances. Funds with deficit cash balance averages (interfund payable) are charged interest equivalent to the average investment earnings lost if financing the deficits. For purposes of the statement of cash flows,the Proprietary funds consider all unrestricted investments held in the pooled accounts of the City to be cash equivalents because this pool is used essentially as a demand deposit account. The pooled investments are recorded at fair value in accordance with GASB 31, and are based on quoted market prices at year end. 58 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) Assets,Liabilities,Deferred Outflows/Inflows of Resources,and Net Position/Fund Balance Cash and Investments with Escrow Agent Certain resources set aside for repayment of lease revenue bond proceeds and crossover refunding bond payments are classified as cash and investments with escrow agent on the balance sheet because their use is limited by applicable bond covenants. Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds" (i.e., the current portion of interfund loans) or advances to/from other funds. All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Inventories and Prepaid Items Liquor fund inventories are valued at average cost. The Water/Sewer and Fleet fund's inventories are valued at cost. All inventories use the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000 and an estimated useful life in excess of 1 year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. 59 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) The City has chosen to use the modified approach for its infrastructure assets, which means the following criteria will take place: • The City will preserve and maintain infrastructure assets at a condition level of 60. • The Engineering department will be in charge of determining the appropriate condition level at which these assets are to be maintained. • The City will maintain an inventory of these assets and perform a condition assessment every 3 years to establish that the condition level of 60 is being maintained. • The City will make annual estimates of the amounts that must be expended to preserve and maintain these assets at the condition level of 60. Property, plant, and equipment, except for infrastructure, of the City are depreciated using the straight line method over the following estimated useful lives: Buildings 5-50 years Land improvements 10-30 years Leasehold improvements 10-25 years Equipment 5-20 years Autos 5-20 years Other assets 5-30 years Distribution system 50-60 years Intangible assets 3 years 60 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element,deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item,which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Compensated Absences The City compensates employees upon termination for unused PTO. Such pay will be reflected as a liability in the government-wide financial statement and accrued as an expense as it is earned in an internal service fund. General Property Taxes Property tax levies are set by the City Council in December each year and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible,net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to taxing districts in February,June,and December. 61 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) In the governmental fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by unavailable revenue because they are not available to finance current expenditures. Special Assessment Levies Special assessments represent the financing for public improvements paid for by the benefiting property owner. In the fund financial statements, special assessment revenue and related interest income is generally recognized in the year collected. Hennepin County acts as the billing and collection agent. Amounts collected by the County during the year that have not yet been remitted to the City are considered collections for purposes of revenue recognition. Deferred special assessments receivable represents principal amounts due in future years. Special deferred assessments receivable includes Green Acres, disability, senior citizen owned property or other qualified hardship properties. These special assessments are deferred until such time the property loses its exempt status. While these taxes remain a valid receivable, the timing of their collection is uncertain. Interest accrues from the year of the deferment. Delinquent special assessments receivable represents special assessments principal and interest that are past due. In the governmental fund financial statements, deferred and delinquent special assessments receivable are fully offset by unavailable revenue because such assessment revenue is not available currently. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums and discounts on debt issuances are reported as other financing sources/uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 62 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies (Continued) Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable-consists of amounts that are not in spendable form,such as prepaid assets. • Restricted-consists of amounts related to externally imposed constraints established by creditors, grantors or contributors;or constraints imposed by state statutory provisions. • Committed-consists of internally imposed constraints. These constraints are established by Resolution of the City Council. • Assigned-consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City's intended use. These constraints are established by the City council and/or management. Pursuant to City Council Resolution, the City's City Manager or Finance Manager is authorized to establish assignments of fund balance. • Unassigned-is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City's policy to use resources in the following order; 1)committed 2)assigned 3)unassigned. The City's fund balance policy requires the unassigned for working capital fund balance component to equal 50% of the next year's budgeted tax revenue. In recognition that the amount for working capital only covers operating costs for the first six months of the year,the City will maintain an unassigned fund balance component for budget stabilization which is 15% of the next year's budget. If the balance falls below 15%, a plan would be developed and implemented to replenish the fund. Prior Period Comparative Financial Information/Reclassification The financial statements include certain prior year partial comparative information but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City's financial statements for the year ended December 31, 2011, from which the summarized information was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. 63 City of Eden Prairie, Minnesota Notes to Financial Statements Note 2—Stewardship, Compliance and Accountability Budgetary Information An annual budget is adopted on a basis consistent with generally accepted accounting principles for the General fund. The City does not budget for its Special Revenue funds. All annual appropriations lapse at fiscal year end. The proposed budget is presented to the City Council for review. The Council then holds truth-in- taxation hearings after which a final General Fund annual budget is legally adopted by no later than December 31. The appropriated budget is prepared by department and division. The City's directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. The legal level of budgetary control is the fund level. Any changes in the total budget of each fund must be approved by a majority vote of the City Council. During the year, adjustments between the original and final General fund amended budget totaled$157,794. Following are changes made to the original budget during the year: Office of the City Manager Wages $ 17,500 Community Development Wages 8,000 Communications Internet and Cabling 14,520 Elections Wages 24,000 Fire Turnout Gear 16,883 Traffic Signals Signal Light Bulbs 8,041 Snow and Ice Salt, GPS, Anti-icing Equip 68,850 $ 157,794 Deficit Fund Equity The following governmental funds had deficit net position at December 31, 2012: Major Funds: Public Improvements Construction $ 3,457,519 Non-Major Governmental Funds: HRA Grant 959 General Obligation Improv. Bonds 2003D 522,819 CIP Trails 280,264 Sprint/Nextel 46,590 Internal Service Funds: Health and Benefits 196,078 Severance 166,796 64 City of Eden Prairie, Minnesota Notes to Financial Statements Note 2—Stewardship, Compliance and Accountability (Continued) The fund balance deficits of these individual Debt Service and Capital Project funds will be financed by property tax levies and special assessments. The fund balance deficit of the Severance Internal Service fund will be financed by user charges. The fund balance deficit of the Health and Benefits fund is due to the OPEB liability which the City will not fund since it pertains only to the Implicit Rate. Note 3—Cash and Investments Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits $ - Investments 93,749,073 Cash on hand 10,675 Total $ 93,759,748 Cash and investments are presented in the financial statements as follows: Statement of Net Position Cash and cash equivalents $ 77,766,746 Restricted cash and cash equivalents 14,515,711 Statement of Fiduciary Net Position Cash and investments 1,477,291 $ 93,759,748 Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, including checking accounts and certificates of deposits. The following is considered the most significant risk associated with deposits: 65 City of Eden Prairie, Minnesota Notes to Financial Statements Note 3—Cash and Investments (Continued) Custodial Credit Risk: In the case of deposits,this is the risk that in the event of a bank failure,the City's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligation rate "A" or better; revenue obligations rate "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificated of deposit. Minnesota Statues require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. It is the City's policy to limit collateral to what is authorized by Minnesota Statutes. At year-end,the carrying amount of the City's deposits was$0 while the balance on the bank records was $0. At December 31, 2012, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City's agent in the City's name. Investments As of December 31, 2012,the city had the following investments and maturities: Investment Maturities (in Years) Fair Less 1 to 5 Value Than 1 Year Years U.S. Agencies $ 29,656,192 $ 10,385,353 $ 19,270,839 Municipal Bonds 4,153,663 2,403,347 1,750,316 Commercial Paper 3,086,638 3,086,638 Negotiable Certificate of Deposit 10,708,184 7,500,573 3,207,611 Mutual Funds 46,144,396 46,144,396 - Total $ 93,749,073 $ 69,520,307 $ 24,228,766 66 City of Eden Prairie, Minnesota Notes to Financial Statements Note 3—Cash and Investments (Continued) Negotiable US Municipal Commercial Certificate Mutual Moody's Agencies Bonds Paper of Deposit Funds AAA $ 14,227,541 $ - $ - $ 514,065 $ - Aa 1 - 867,700 - - - Aa2 - 456,965 - - - Aa3 - 1,077,870 - - - Al - 463,560 - - - N/A 15,428,651 - - 10,194,119 - N/R - 1,287,568 3,086,638 - 46,144,396 29,656,192 4,153,663 3,086,638 10,708,184 46,144,396 Moody's Investors Service was used as the primary agency for the municipal bond ratings, in the case that Moody's did not provide a rating Standard &Poor's was used. Investments are subject to various risks,the following of which are considered the most significant. Interest Rate Risk Per City policy, the City will match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase. Reserve funds and other funds with longer-term investment horizons may be invested in securities exceeding five (5) years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of funds. The intent to invest in securities with longer maturities will be disclosed to the City Council. Currently, the City does not have any investments maturing more than five years from the date of purchase. Credit Risk It is the City's policy to limit its investments to the following types as authorized by Minnesota Statutes: • Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. • Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above or in general obligation tax exempt securities, or repurchase or reverse repurchase agreements. 67 City of Eden Prairie, Minnesota Notes to Financial Statements Note 3—Cash and Investments (Continued) • Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding$10,000,000: a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers, or, a bank qualified as a depositor. • Commercial paper issued by United States corporations or their Canadian subsidiaries, of the higher quality, and maturing in 270 days or less. • Banker's acceptance of U.S.banks eligible for purchase by the Federal Reserve System. • General obligations of a state of local government. • Money market mutual funds meeting the conditions of rule 2a-7 of the Securities and Exchange Commission. The fair value of the position in the pool is the net asset value per share provided by the pool. Custodial Credit Risk For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investments held by the broker-dealer were insured by Securities Investor Protection Corporation (SIPC) or other supplemental insurance as of December 31, 2012. However, each investment brokerage firm may have a limit to their supplemental insurance and because of the size of the City's portfolio in relation to the brokerage firm's excess SIPC coverage limits the portion of the supplemental policy applicable to the City's portfolio is unknown. The City accepts the risk due to the controls in place at the broker-dealer. The City's investment policy does not further address this risk, but the City typically limits its exposure by purchasing insured or registered investments,or by the control of who holds the securities. Concentration Risk This is the risk associated with investing a significant portion of the City's investment (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City's investment policy does not limit the concentration of investments. At year end, the City held the following investments in securities of a single issuer which exceeded 5%. Issuer Percentage Federal Home Loan Bank 5.3% 68 City of Eden Prairie, Minnesota Notes to Financial Statements Note 4—Capital Assets Capital asset activity for the year ended December 31, 2012 was as follows: 2012 2012 Beginning Ending Balance Transfers Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital Assets, Not Being Depreciated: Land $ 22,584,767 $ - $ - $ 578,039 $ 22,006,728 Infrastructure 117,280,038 2,750,055 166,019 - 120,196,112 Work in Progress 13,018,143 (5,919,545) 5,631,958 - 12,730,556 Total Capital Assets, Not Being Depreciated 152,882,948 (3,169,490) 5,797,977 578,039 154,933,396 Capital Assets, Being Depreciated: Buildings 49,314,166 - 300,682 - 49,614,848 Land Improvements 13,487,667 1,465,019 12,277 259,583 14,705,380 Leasehold Improvements 77,318 - - - 77,318 Machinery and Equipment 3,929,904 - 102,054 242,172 3,789,786 Autos 9,217,760 - 905,853 503,083 9,620,530 Other Assets 7,220,199 1,516,278 42,011 1,105,049 7,673,439 Total Capital Assets, Being Depreciated 83,247,014 2,981,297 1,362,877 2,109,887 85,481,301 Total Capital Assets, Cost 236,129,962 (188,193) 7,160,854 2,687,926 240,414,697 Less Accumulated Depreciation for: Buildings 10,949,034 - 1,101,350 - 12,050,384 Land Improvements 3,830,927 - 706,738 259,583 4,278,082 Leasehold Improvements 37,511 - 5,068 - 42,579 Machinery and Equipment 2,741,605 - 365,755 242,172 2,865,188 Autos 5,470,074 - 864,714 500,083 5,834,705 Other Assets 4,719,429 - 377,015 1,105,049 3,991,395 Total Accumulated Depreciation 27,748,580 - 3,420,640 2,106,887 29,062,333 Total Capital Assets, Being Depreciated, Net 55,498,434 2,981,297 (2,057,763) 3,000 56,418,968 Governmental Activities Capital Assets, Net $ 208,381,382 (188,193) $ 3,740,214 $ 581,039 $ 211,352,364 69 City of Eden Prairie, Minnesota Notes to Financial Statements Note 4-Capital Assets (Continued) 2012 2012 Beginning Ending Balance Transfers Increases Decreases Balance BUSINESS-TYPE ACTIVITIES Capital Assets, Not Being Depreciated: Land 656,356 - - - 656,356 Work in Progress 1,789,770 (205,773) 159,403 - 1,743,400 Total Capital Assets, Not Being Depreciated 2,446,126 (205,773) 159,403 - 2,399,756 Capital Assets, Being Depreciated: Land Improvements 107,304 - - - 107,304 Buildings 58,989,884 - - - 58,989,884 Distribution System 186,033,465 273,494 216,387 1,500 186,521,846 Leasehold Improvements 727,394 120,472 - - 847,866 Machinery and Equipment 4,151,154 - - 217,945 3,933,209 Autos 958,254 - 216,380 41,209 1,133,425 Other Assets 428,505 - - 191,005 237,500 Total Capital Assets, Being Depreciated 251,395,960 393,966 432,767 451,659 251,771,034 Total Capital Assets, Cost 253,842,086 188,193 592,170 451,659 254,170,790 Less Accumulated Depreciation for: Land Improvements 12,256 - 4,962 - 17,218 Buildings 25,179,804 - 1,336,733 - 26,516,537 Distribution System 83,441,884 - 3,724,776 - 87,166,660 Leasehold Improvements 115,757 - 73,578 - 189,335 Machinery and Equipment 1,219,774 - 260,771 217,945 1,262,600 Autos 842,786 - 55,326 41,209 856,903 Other Assets 360,841 - 20,869 191,005 190,705 Total Accumulated Depreciation 111,173,102 - 5,477,015 450,159 116,199,958 Total Capital Assets, Being Depreciated, Net 140,222,858 393,966 (5,044,248) 1,500 135,571,076 Business-Type Activities Capital Assets, Net $ 142,668,984 $ 188,193 $ (4,884,845) $ 1,500 $ 137,970,832 70 City of Eden Prairie, Minnesota Notes to Financial Statements Note 4—Capital Assets (Continued) Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities: General Government $ 382,173 Community Development 26,151 Police 242,720 Fire 560,016 Public Works 440,523 Parks and Recreation 1,539,456 Capital Assets Held by the Government's Internal Service Funds are Charged to the Various Functions Based on their Usage of the Assets 229,601 Total Depreciation Expense - Governmental Activities $ 3,420,640 Business-Type Activities: Water $ 2,804,627 Sewer 1,719,688 Storm 837,712 Liquor 114,988 Total Depreciation Expense - Business-Type Activities $ 5,477,015 Note 5—Interfund Receivables and Payables The composition of due to/from balances as of December 31, 2012, is as follows: Due From Due To Other Funds Other Funds Capital Improvement Maintenance $3,407,273 $ - Public Improvements Construction - 3,407,273 Non-Major Governmental Funds 1,085,312 1,085,312 Total $4,492,585 $4,492,585 The funds will be repaid as special assessment revenue,taxes and user charges are received. Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances. 71 City of Eden Prairie, Minnesota Notes to Financial Statements Note 6—Interfund Transfers The composition of interfund transfers as of December 31, 2012, is as follows: Transfers In Transfers Out Amount General Water fund $ 260,000 Storm Drainage fund 10,000 Non-Major Governmental Funds 13,108 Capital Improvement Maintenance General 3,383,719 Liquor fund 1,063,557 Non-Major Governmental Funds 2,482,272 Public Improvement Construction Non-Major Governmental Funds 3,210 Non-Major Governmental funds General 155,582 Capital Improvement Maintenance 1,970,000 Public Improvement Construction 2,998 Shady Oak Road North 4,150,000 Non-Major Governmental Funds 306,000 Storm Drainage fund 25,000 Internal service funds Non-Major Governmental Funds 1,400 Total of transfers $ 13,826,846 Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund. All of the City's interfund transfers fall under that category. All of the 2012 transfers are considered routine and consistent with previous practices. 72 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Pension Plan Defined Benefit Pension Plans-Statewide Plan Description All full-time and certain part-time employees of the City of Eden Prairie are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost-sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers and fire-fighters who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service,age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and GERF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. 73 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Pension Plan (Continued) There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service,but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the Internet at www.mnpera.org,by writing to PERA at 60 Empire Drive#200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.25%, respectively, of their annual covered salary in 2012. PEPFF members were required to contribute 9.6% of their annual covered salary in 2012. In 2012, the City of Eden Prairie was required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2012, 2011 and 2010 were $1,000,726, $962,681, and $911,909, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ending December 31, 2012, 2011, and 2010 were $951,751, $909,622, and $879,255, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Defined Contribution Plan Council members of the City of Eden Prairie are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. 74 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Pension Plan (Continued) Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 percent of salary which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and twenty-five hundredths of one percent of the assets in each member's account annually. Total contributions made by the City of Eden Prairie during the year ending December 31,2012 were: Amount % of Covered Payroll Required Employee Employer Employee Employer Rates $ 2,175 $ 2,175 5.00% 5.00% 5.00% Defined Benefit Pension Plans-Volunteer Fire Fighter's Relief Association Plan Description The Eden Prairie Firefighter's Relief Association is the administrator of a single employer defined benefit pension plan established to provide benefits for members of the Eden Prairie Fire Department. Volunteer firefighters of the City are members of the Eden Prairie Fire Fighter's Relief Association. Full retirement benefits are payable to members who have reached age 50 and have completed 15 years of service for monthly service pension, or 10 years of service for lump sum service pension. Partial benefits are payable to members who have reached 50 and have completed 10 years of service. Disability benefits and widow and children's survivor benefits are also payable to members or their beneficiaries based upon requirements set forth in the bylaws. These benefit provisions and all other requirements are consistent with enabling state statutes. The Association issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Eden Prairie Firefighter's Association, 14800 Scenic Heights Rd., Eden Prairie, MN 55344 or by calling (952) 949- 8367. 75 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Pension Plan (Continued) Funding Policy Minnesota Statutes Chapter 69.772 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from State aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten year period. The City's obligation is the financial requirement for the year less state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the relief association. The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage calculations). During the year, the City recognized as revenue and as an expenditure an on- behalf payment of$291,468 made by the State of Minnesota for the Relief Association. The City's annual pension cost for the current year and related information is as follows: Annual pension cost - $917,378 Asset valuation method-Market Valuation date-December 31, 2012 Actuarial assumptions: Actuarial cost method-Entry age normal cost Investment return-5% per year Amortization method-Level dollar open Assumed inflation rate-N/A Remaining amortization period Cost of living adjustment-N/A Normal cost-20 Prior service cost-10 Three Year Trend Information Year Ended Actual Contribution Required Percentage Dec 31, City State Total Contribution Contributed 2008 $ 411,221 $ 335,779 $ 747,000 $ 747,000 100% 2009 462,805 284,195 747,000 747,000 100% 2010 1,129,002 292,384 1,421,386 1,421,386 100% 2011 830,077 286,728 1,116,805 1,116,805 100% 2012 625,910 291,468 917,378 917,378 100% 76 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Pension Plan (Continued) Required Supplementary Information Actuarial Actuarial Actuarial Accrued (Unfunded) Valuation Value of Liability Overfunded Funded Date Assets (AAL) AAL Ratio 12/31/2010 $ 16,967,737 $ 19,282,133 $ (2,314,396) 88.00% 12/31/2011 16,838,952 19,282,133 (2,443,181) 87.33% 12/31/2012 18,404,639 20,089,266 (1,684,627) 91.61% The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e.,there are no covered payroll percentage calculations). Note 8—Other Post-Employment Benefits Plan Plan Description The City provides post-employment insurance benefits to certain eligible employees through the City's Other Post-Employment Benefits Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee groups. These contractual agreements do not include any specific contribution or funding requirements. The Plan does not issue a separate report. As of December 31, 2012, membership included 12 retirees and others currently receiving benefits, 7 spouses receiving payments and 256 active plan members. These benefits are summarized as follows: Post-Employment Insurance Benefits All retirees of the City have the option under state law to continue their medical insurance coverage through the City from the time of retirement until the employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree must pay the full premium to continue coverage for medical and dental insurance. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees, whether the premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an "implicit rate subsidy." This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City's younger and statistically healthier active employees. 77 City of Eden Prairie, Minnesota Notes to Financial Statements Note 8—Other Post-Employment Benefits Plan (Continued) Funding Policy The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to pre-fund benefits as determined annually by the City. Annual OPEB Cost and Net OPEB Obligation The City's annual OPEB cost (expense) is calculated based on annual required contributions (ARC) of the City, an amount determined on an actuarially determined basis in accordance with the parameters of GASB Statement Nos. 43 and 45. The City prospectively implemented these statements during 2008. The ARC represents a level funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and the changes in the City's net OPEB obligation to the plan: Annual Required Contribution $ 327,468 Interest on Net OPEB Obligation 34,626 Adjustment to Annual Required Contribution (47,344) Annual OPEB Cost Expense 314,750 Contributions Made 95,306 Increase in Net OPEB Obligation 219,444 Net OPEB Obligation-Beginning of Year 769,453 Net OPEB Obligation-End of Year $ 988,897 Other post employment benefits are generally liquidated through the Health and Benefits Internal Service funds. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year are as follows: of Annual Fiscal Annual Employer OPEB Cost Net OPEB Year Ended OPEB Cost Contribution Contributed Obligation 12/31/10 $ 282,844 $ 64,723 22.9% $ 572,151 12/31/11 279,201 81,899 29.3% 769,453 12/31/12 314,750 95,306 30.3% 988,897 78 City of Eden Prairie, Minnesota Notes to Financial Statements Note 8—Other Post-Employment Benefits Plan (Continued) Funded Status and Funding Progress As of January 1, 2012, the plan was zero percent funded. The actuarial accrued liability for benefits was $2,814,481, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of$2,814,481. The covered payroll (annual payroll of active employees covered by the plan) was $17,746,102, and the ratio of the UAAL to the covered payroll was 15.9%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and ARCs of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress immediately following the notes to the basic financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2012 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included: a 4.5% percent investment rate of return (net of investment expenses) based on the City's own investments; an annual healthcare cost trend rate of 8.0% initially, reduced by decrements to an ultimate rate of 5% after six years for medical insurance. Both rates included a 2.5% inflation assumption. The UAAL is being amortized on a level dollar basis over a closed period. The remaining period at January 1,2012 is 30 years or less. 79 City of Eden Prairie, Minnesota Notes to Financial Statements Note 9—Leases As Lessee The City has entered into lease agreements for two space leases in connection with its liquor store operations. Rental expense, excluding a prorated share of real estate taxes and common area operating costs,for the year ended December 31,2012,was approximately$213,180. The following is an annual schedule of future minimum lease payments under these leases: Year Ended Prairie Prairie December 31, Village View 2013 $ 126,710 $ 90,169 2014 130,494 92,172 2015 134,430 92,172 2016 138,454 94,176 2017 142,630 94,176 2018-2019 121,800 192,360 $ 794,518 $ 655,225 The City has entered into a lease agreement with the Metropolitan Airports Commission for expanded athletic fields. Rental expense for the year ended December 31, 2012,was $3,713. The City will continue to pay this amount,escalating 3%per year for the remaining lease term,which expires August 1, 2013. As Lessor The City occupies approximately one-third of the City Center building. The remaining two-thirds are primarily leased to the Eden Prairie Independent School District and C.H. Robinson Company. The City recorded 2012 rental revenue of approximately $461,500 from these two tenants. Both the School District and C.H. Robinson Company have signed formal lease agreements wherein the City will receive in rental revenue approximately $470,000 in 2013 and $79,150 in 2014 before the lease expires on February 28,2014. The City will also receive the lessee's portion of maintenance,insurance and taxes. The City has entered into a lease agreement with Riley Purgatory Bluff Creek Watershed District for the rental of an office space located in City Center. Rental income for the year ended December 31, 2012 was $1,000. The City will receive $2,400 annually until the lease expires on July 31,2014. The City has entered into a lease agreement with Pure Grace for the rental of space located at the Smith Douglas More House. Rental income for the year ended December 31, 2012 was $34,000. This lease will expire on December 31,2017. The City will receive $34,000 annually through 2017. 80 City of Eden Prairie, Minnesota Notes to Financial Statements Note 9—Leases (Continued) The City has entered into a lease agreement with Ace Daycare for the rental of space located at 8098 Glen Lane. Rental income for the year ended December 31, 2012 was $66,500. This lease will expire on September 30,2015. The City will receive $66,500 annually through 2015. The City has entered into a lease agreement with BE Ventures I, Inc. d/b/a Complete Nutrition for 1,517 square feet of rental of space located in the Den Road Liquor store building. Rental income for the year ended December 31,2012 was $34,891. The City will receive$34,891 annually through 2015. The City has entered into a lease agreement with Jeneka LLC d/b/a Encore Consignment Boutique 3,662 square feet of rental of space located in the Den Road Liquor store building. Rental income for the year ended December 31, 2012 was $73,812. The City will receive rent annually through 2018. Annual rent will be $79,018 in year 2013, $91,551 in 2014-2016, and$98,875 in 2017-2018. The City has entered into a lease agreement with a tenant for the rental of space located at 9100 Riley Lake Road (the "Riley House"). Rental income for the year ended December 31, 2012 was $6,600. This lease was extended during 2012 and will expire on June 30, 2013. The City will receive $3,300 through June 2013. The assets acquired for these lease agreements is as follows: 2012 2012 Governmental Liquor Activities Fund Asset: Land $ 2,628,813 $ 536,659 Building 13,005,368 1,900,408 Less: Accumulated depreciation (4,404,447) (492,654) Total $ 11,229,734 $ 1,944,413 Depreciation Expense $ 297,780 $ 38,040 81 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10—Long Term Debt Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. The City also issues assessment debt with governmental commitment to provide funds for the construction of streets and utilities. These bonds will be repaid from amounts levied against the property owners benefited by this construction. In the event that a deficiency exists because of unpaid or delinquent assessments at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are received. Assessment debt with governmental commitment has been issued for governmental activities. The City also issued lease revenue bonds where the government pledges income derived from lease agreements to pay debt service. 82 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10-Long Term Debt (Continued) Bonds currently outstanding (in thousands of dollars) are as follows: 2012 Interest Original Amount Maturities Rates Issue Outstanding Governmental Activity General obligation bonds G.O. Refunding Bonds of 2003C 2014 2.00-3.90% $ 1,445 $ 380 G.O. Bonds of 2005C 2014 4.10% 4,920 4,920 G.O. Bonds of 2006A 2014 3.50-4.00% 8,425 5,440 G.O. Bonds of 2006B 2015 4.25% 4,290 3,565 G.O. Equip Notes of 2008A 2018 3.00-4.00% 3,120 1,950 G.O. Equip Notes of 2009B 2018 3.00% 2,455 1,660 G.O. CIP Refunding Bonds 2009C 2014 2.50-3.00% 1,395 585 G.O. Bonds 2011B 2016 2.50-3.00% 415 335 G.O. Refunding Bonds 2011C 2021 1.25-2.10% 4,455 4,455 G.O. Refunding Bonds 2012A 2026 2.00-2.63% 5,110 5,110 G.O. Refunding Bonds 2012B 2027 2.00-2.50% 3,170 3,170 Lease revenue bonds Public Facility Bonds of 2007A 2028 3.60-4.50% 1,630 1,425 Assess debt with govt commit G.O. Bonds of 2003D 2014 1.75-4.00% 4,305 325 G.O. Revolving Bonds of 2005A 2015 3.25-3.55% 2,390 810 G.O. Revolving Bonds of 2005B 2014 3.50-3.60% 2,690 1,975 G.O. Revolving Bonds of 2008B 2023 3.50-4.50% 1,845 1,445 G.O. Revolving Bonds of 2010A 2025 2.00-4.00% 1,190 1,060 G.O. Revolving Bonds of 2011D 2025 2.00-2.63% 1,805 1,805 G.O. Revolving Bonds of 2012C 2021 2.00% 10,250 10,250 Total Governmental Activity 65,305 50,665 Business Type Activitiy G.O. Water &Sewer Bonds 2011A 2020 .50-3.80% 1,260 1,020 G.O. bonds 2011B 2020 2.50-3.00% 3,320 2,680 Total Business Type Activity 4,580 3,700 Capital Lease 2016 2.56% 220 175 Total $ 70,105 $ 54,540 83 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10-Long Term Debt (Continued) Annual debt service requirements to maturity for governmental activity bonds (in thousands of dollars) are as follows: Assessment Debt with Govt Years Commitment Ending G.O.Bonds Lease Revenue Bonds Improv Bonds Total 12/31 Principal Interest Principal Interest Principal Interest Principal Interest 2013 $ 2,360 $ 1,036 $ 65 $ 61 $ 2,445 $ 379 $ 4,870 $ 1,476 2014 11,515 703 70 58 765 363 12,350 1,124 2015 4,375 378 70 56 2,485 320 6,930 754 2016 1,430 279 75 53 1,865 267 3,370 599 2017 1,360 248 80 50 1,845 226 3,285 524 2018 1,410 217 80 46 1,820 187 3,310 450 2019 1,005 191 85 42 1,805 146 2,895 379 2020 1,030 172 85 39 1,630 108 2,745 319 2021 1,050 152 90 35 1,615 71 2,755 258 2022 1,100 129 95 31 415 46 1,610 206 2023 1,135 106 100 26 425 32 1,660 164 2024 1,150 80 100 22 275 17 1,525 119 2025 1,165 52 100 17 280 9 1,545 78 2026 1,205 22 110 12 - - 1,315 34 2027 280 4 110 7 - - 390 11 2028 - - 110 3 - - 110 3 Total $31,570 $ 3,769 $ 1,425 $ 558 $ 17,670 $ 2,171 $50,665 $ 6,498 84 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10—Long Term Debt (Continued) Annual debt service requirements to maturity for business-type activity bonds (in thousands of dollars) are as follows: Years Ending Revenue Bonds 12/31 Principal Interest 2013 $ 430 $ 104 2014 440 95 2015 445 85 2016 455 73 2017 465 60 2018 475 46 2019 485 32 2020 505 16 Total $ 3,700 $ 511 Capital Lease In 2012, the City entered into a new lease for financing the purchase of turn out gear for the Fire department. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of their future minimum lease payments as of the inception date. This equipment was not capitalized by the City. The future minimum lease obligations and the net present value of these minimum lease payments as of December 31, 2012,were as follows: Year Ended December 31, Principal 2013 $ 46,545 2014 46,544 2015 46,545 2016 46,544 Net Minimum Lease Payments 186,178 Less Amount Representing Interest 11,459 Present Value of Net Minimum Lease Payments $174,719 85 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10-Long Term Debt (Continued) Changes in Long Term Debt Long-term debt activity for the year ended December 31, 2012, (in thousands of dollars)was as follows: Due Beginning Ending Within Balance Additions Reductions Balance One Year Governmental Activity G.O. bonds $ 25,690 $ 8,280 $ 2,400 $31,570 $ 2,360 Lease revenue bonds 2,685 - 1,260 1,425 65 Assess. debt with govt commit Improvement bonds 8,130 10,250 710 17,670 2,445 Issuance premium/discount 192 606 26 772 - Deferred gain 132 - 75 57 - Total bonds 36,829 19,136 4,471 51,494 4,870 Compensated absences 1,726 1,657 1,496 1,887 962 Capital lease - 220 45 175 42 Total $ 38,555 $ 21,013 $ 6,012 $53,556 $ 5,874 Business Type Activity Revenue bonds $ 4,125 $ - $ 425 $ 3,700 $ 430 Issuance premium/discount 146 - 16 130 - Total bonds 4,271 - 441 3,830 430 Compensated absences 233 241 229 245 125 Total $ 4,504 $ 241 $ 670 $ 4,075 $ 555 For the governmental activities, the capital lease is generally paid with unassigned fund balances within the General fund. Compensated absences will be paid out of the Internal Service fund. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Call provisions are applicable to certain general obligation and special assessment bond issues. 86 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10—Long Term Debt (Continued) Changes in Long Term Debt During 2011 the City issued $4,455,000 G.O. Refunding Bonds 2011C to provide for the redemption of the G.O. Bonds 2006A. The refunding reduced total debt payment by $250,586 and resulted in an economic gain of$230,849. The proceeds of the crossover refunding were placed in an irrevocable escrow account and were used to purchase U.S. government securities. The escrow account investments will provide the resources to cover principal and interest payments on the refunding bonds until the crossover date. The refunding bonds cross over on the dates the refunded bonds are callable. Until the crossover dates, both the refunded and refunding bonds will be reported in the financial statements. Escrow Crossover Principal to Deposit Issue to be Refunded Date be Refunded at 12/31/12 G.O. Bonds 2006A 01/01/2014 $ 4,295,000 $ 4,381,698 The City also issued$1,805,000 G.O. Refunding Bonds 2011D to provide for the redemption of the G.O. Bonds 2005B. The refunding reduced total debt payment by$134,855 and resulted in an economic gain of$114,830. The proceeds of the crossover refunding were placed in an irrevocable escrow account and were used to purchase U.S. government securities. The escrow account investments will provide the resources to cover principal and interest payments on the refunding bonds until the crossover date. The refunding bonds cross over on the dates the refunded bonds are callable. Until the crossover dates, both the refunded and refunding bonds will be reported in the financial statements. Escrow Crossover Principal to Deposit Issue to be Refunded Date be Refunded at 12/31/12 G.O. Bonds 2005B 12/1/2013 $ 1,730,000 $ 1,766,505 87 City of Eden Prairie, Minnesota Notes to Financial Statements Note 10—Long Term Debt (Continued) Changes in Long Term Debt During 2012 the City issued $5,110,000 G.O. Refunding Bonds 2012A to provide for the redemption of the G.O. Bonds 2005C. The refunding reduced total debt payment by $651,406 and resulted in an economic gain of$551,320. The proceeds of the crossover refunding were placed in an irrevocable escrow account and were used to purchase U.S. government securities. The escrow account investments will provide the resources to cover principal and interest payments on the refunding bonds until the crossover date. The refunding bonds cross over on the dates the refunded bonds are callable. Until the crossover dates, both the refunded and refunding bonds will be reported in the financial statements. Escrow Crossover Principal to Deposit Issue to be Refunded Date be Refunded at 12/31/12 G.O. Bonds 2005C 1/1/2014 $ 4,920,000 $ 5,114,943 During 2012 the City issued $3,170,000 G.O. Refunding Bonds 2012B to provide for the redemption of the G.O. Bonds 2006B. The refunding reduced total debt payment by $304,967 and resulted in an economic gain of$257,382. The proceeds of the crossover refunding were placed in an irrevocable escrow account and were used to purchase U.S. government securities. The escrow account investments will provide the resources to cover principal and interest payments on the refunding bonds until the crossover date. The refunding bonds cross over on the dates the refunded bonds are callable. Until the crossover dates, both the refunded and refunding bonds will be reported in the financial statements. Escrow Crossover Principal to Deposit Issue to be Refunded Date be Refunded at 12/31/12 G.O. Bonds 2006B 1/1/2015 $ 3,000,000 $ 3,156,550 88 City of Eden Prairie, Minnesota Notes to Financial Statements Note 11—Risk Financing and Related Insurance Issues The City is exposed to various risk of loss related to torts; thefts of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. In order to protect against these risks of loss, the City purchases commercial insurance through the League of Minnesota Cities Insurance Trust, a public entity risk pool, for property insurance and workers compensation. This pool currently operates as a common risk management and insurance program for municipal entities. The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. During the year ended December 31, 2012, these were no significant reductions in insurance coverage from the prior year. Settled claims have not exceeded the City's commercial coverage in any of the past three years. Note 12—Contingencies The City has been named in various legal actions. At the present time, there is no significant litigation pending that would cause a material effect on the financial statements if unfavorable rulings would result. While it is not possible to provide any probability of success or estimate of potential loss in defending any of these legal actions, the City expects to contest the allegations vigorously and does not believe these actions will have a material effect on the financial statements. A potential claim may be asserted against the City arising out of its membership in the Western Area Firing Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the late 1980's, WAFTA became aware that the site was contaminated. Since that time, WAFTA has been working with the Minnesota Pollution Control Agency(MPCA) and other responsible parties to address the contamination issues on the site. At this time, there is not an estimated dollar amount of the cost to remediate the site nor has a claim been asserted against WAFTA or the City. Note 13—Contract Commitments At December 31,2012,the City had commitments on various construction projects. These commitments totaled approximately$7,624,749. 89 City of Eden Prairie, Minnesota Notes to Financial Statements Note 14—Conduit Debt Obligations From time to time, the City has issued Industrial Revenue and Housing bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2012, there were 23 series of Industrial Revenue Bonds outstanding,with outstanding balances of$107,970,837. Note 15—Fund Balance Classification At December 31,2012, a summary of the governmental fund balance classifications are as follows: General Obligation Improv. Capital Public Shady Oak Other Revolving Improvement Improvement Road Govt General 2005B Maintenance Construction North Funds Total Nonspendable: Prepaid Items $ 52,190 $ - $ - $ - $ - $ 530 $ 52,720 Land Held for Resale - - - - - 537,000 537,000 Total Nonspendable 52,190 - - - - 537,530 589,720 Restricted for: Debt Service - 2,099,029 - - - 15,259,926 17,358,955 Special Assessments - - - - - 482,792 482,792 Franchise Fee - - - - - 43,038 43,038 Cemetary - - - - - 141,141 141,141 Recycling - - - - - 10,393 10,393 Law Enforcement - - - - - 165,915 165,915 E-911 - - - - - 235,315 235,315 Park Dedication Fees - - - - - 462,539 462,539 Tax Increment - - - - - 3,381,001 3,381,001 - 2,099,029 - - - 20,182,060 22,281,089 Assigned to: Capital Projects - - 12,993,921 - - 493,064 13,486,985 Improvement Projects - - - - 8,629,442 12,209,623 20,839,065 Total Assigned - - 12,993,921 - 8,629,442 12,702,687 34,326,050 Unassigned: Budget Stabilization 5,893,437 - - - - - 5,893,437 Working Capital 15,104,613 - - - - - 15,104,613 Unassigned 71,000 - - (3,457,519) - (850,762) (4,237,281) Total Unassigned 21,069,050 - - (3,457,519) - (850,762) 16,760,769 Total Fund Balance $21,121,240 $2,099,029 $12,993,921 $(3,457,519) $8,629,442 $32,571,515 $73,957,628 90 City of Eden Prairie, Minnesota Notes to Financial Statements Note 16—Change in Accounting Principle For the year ended December 31, 2012,the City implemented GASB Statement No. 63 and No. 65. This action resulted in the establishment of categories outside of assets and liabilities titled deferred outflows and deferred inflows. The Statement also retitled Net Assets as Net Position 91 City of Eden Prairie, Minnesota Required Supplemental Information Modified Approach for Infrastructure Assets Condition Rating of the City's Street System: Average PCI 2010 81.10% 2007 81.30% 2004 80.40% 2001 80.50% 1998 84.90% Comparison of Needed-to-Actual Maintenance/Preservation: 2012 2011 2010 2009 2008 Budget $2,397,000 $2,304,079 $2,280,000 $2,190,000 $2,080,000 Actual 2,172,757 1,711,894 1,960,670 2,187,455 1,581,724 Difference $ (224,243) $ (592,185) $ (319,330) $ (2,545) $ (498,276) The condition of road pavement is measured using Good Pointe's Icon pavement management system. Each of the pavements in the City of Eden Prairie was visually inspected using the Paver-based Pavement Condition Index (PCI) methodology. The methodology is based on a numeric rating system ranging from 100 for a newly surfaced pavement to 0 for a failed pavement. The condition index is used to classify roads in excellent condition (85-100), very good condition (70-84), good condition (55-69), fair condition (40-54), poor condition (25-39), very poor condition (10-24) and failed condition (0-9). It is the City's policy to maintain an average PCI of 60 percent. 92 City of Eden Prairie, Minnesota Required Supplemental Information Other Post-Employment Benefits Plan Schedule of Funding Progress Unfunded Unfunded Actuarial Actuarial Actuarial Actuarial Liability Fiscal Valuation Accrued Value of Accrued Funded Covered as a % of Year Ended Date Liability Plan Assets Liability Ratio Payroll Payroll 12/31/08 1/1/08 $ 1,781,809 $ - $ 1,781,809 0.0% $ 16,945,552 10.5% 12/31/09 1/1/08 1,781,809 - 1,781,809 0.0% 16,945,552 10.5% 12/31/10 1/1/10 2,438,910 - 2,438,910 0.0% 17,127,274 14.2% 12/31/11 1/1/10 2,438,910 - 2,438,910 0.0% 17,127,274 14.2% 12/31/12 1/1/12 2,814,481 - 2,814,481 0.0% 17,746,102 15.9% 93 Combining Fund Statements City of Eden Prairie, Minnesota Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Housing Redevelopment Authority(HRA Grant) - This fund accounts for monies received under Title I of the Housing and Community Development Act of 1974 and other related housing activities. Pleasant Hills Cemetery - This fund accounts for the current operations of the City cemetery including maintenance costs and lot sales. Recycling - This fund accounts for monies received from Hennepin County's household waste rebate programs. All dollars received are to be refunded to eligible households within Eden Prairie. 95 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Debt Service Funds Debt service funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for principal and interest. HRA Lease Revenue 2002 - This fund accounts for the refunding of the HRA Lease Revenue Bonds of 1992 (Rink Addition) and the HRA Lease Revenue Bonds of 1993 (City Center). General Obligation Park Refunding 2003 - This fund accounts for the refunding of the G.O. Park Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance major park development and park improvement projects within the City. Open Space Refunding 2003 - This fund accounts for the refunding of the 1994 G.O. Open Space Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance the acquisition of land for the City's preservation program. General Obligation Improvement 2003D - This fund accounts for the accumulation of resources needed to repay bonds issued to finance the construction of streets, lateral utilities, and drainage for the Charlson and Hillcrest Construction Projects. The primary sources of repayment on these bonds are special assessments levied on benefited properties. General Obligation Improvement Revolving 2005A - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction projects for the ADC project. General Obligation Bonds 2005C - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction projects for various trails, park improvements and the community center. General Obligation Bonds 2006A - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction projects for various trails, park improvements and the community center. General Obligation Bonds 2006B - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction projects for the new Fire station. General Obligation Bonds 2006C - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to finance various fire vehicles and upgrades to the communications control room. 96 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Debt Service Funds (Continued) 3rd Rink Lease Revenue Bonds 2007A - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction projects for the 3rd Sheet of Ice at the community center. Capital Equipment Notes 2008A - This fund is used to account for the accumulation of tax revenues needed to repay certificates issued to finance the 20/40/15 project, regional radio conversion project and two fire trucks. General Obligation Bonds 2008B - This fund is used to account for the accumulation of resources needed to repay bonds issued to finance the construction of streets, lateral utilities, and drainage for the Flying Cloud Drive construction project. The primary sources of repayment on these bonds are special assessments levied on benefited properties. Capital Equipment Notes 2009B - This fund is used to account for the accumulation of tax revenues needed to repay certificates issued to finance the 20/40/15 project and the regional radio conversion project. CIP Refunding Bonds 2009C - This fund accounts for the refunding of the HRA Lease Revenue Facility Bonds for the Fire Station. General Obligation Improvement Bonds 2010A - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction costs for the Singletree Lane project. General Obligation Improvement Bonds 2011B - This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to finance the Self Contained Breathing Apparatus Gear for the fire department. General Obligation Refunding 2011C - This fund accounts for the refunding of the G.O. Park Referendum Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for various trails,park improvements and the community center. General Obligation Refunding 2011D - This fund accounts for the refunding of the G.O. Improvement Revolving Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance the construction at 212 and Charleston Road. 97 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Debt Service Funds (Continued) General Obligation Refunding 2012A - This fund accounts for the refunding of the G.O. Bonds 2005C which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for various trails,park improvements and the community center. General Obligation Refunding 2012B - This fund accounts for the refunding of the G.O. Bonds 2006B which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for the new fire station. General Obligation Improvement Bonds 2012C- This fund is used to account for the accumulation of special assessments needed to repay bonds issued to finance the Shady Oak Road North project. 98 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Capital Projects Funds Capital projects funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for capital outlay. Police - This fund accounts for all confiscated money, and / or property obtained through drug-related criminal arrests and compliance fines. The funds are earmarked for expenditures on law enforcement operations. E-911 - This fund accounts for monies received from the State of Minnesota to be used for the E-911 emergency system. Senior Board- This fund was established to account for monies received for Senior Awareness Week. Park Improvement - This fund accounts for the park dedication fees, grants, and other contributions earmarked for expenditure on park acquisition and development. CIP Trails - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City trails. CIP Pavement Management - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City streets. Economic Development - This fund accounts for money set aside to assist in the redevelopment of the City. Project - This fund accounts for tax increment revenue set aside to assist in the redevelopment of the City. Parks Referendum - This fund accounts for the construction projects at the various city parks which were approved with the park referendum. Trails Referendum - This fund accounts for the construction projects on the various city trails which were approved with the park referendum. Sprint / Nextel - This fund accounts for contributions from Sprint for the transition of the City's radio system. HRA - This fund accounts for the accumulation of resources to be used for economic development projects. 99 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Capital Projects Funds (Continued) Flying Cloud Drive - This fund accounts for proceeds of bonds sold to finance the construction of a three lane road from south of Shady Oak Road to the south end of the Liberty Plaza campus. Transportation - This fund accounts for proceeds of state aid. This revenue is used to finance street improvements. Shady Oak Road South - This fund accounts for the accumulation of resources to be used for the reconstruction of Shady Oak Road from Flying Cloud Drive to Rowland Road. Cable PEG (Public, Educational, and Government)- This fund accounts for the revenues collected from Comcast. These funds will be used for the production of PEG Access programming. 100 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Permanent Funds Permanent funds are used to account for resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs that is, for the benefit of the City or its citizens. Historical and Cultural - This fund accumulates revenue from the sale of a book on Eden Prairie's 100- year history. The book was donated to the City by the Eden Prairie Historical Society, with revenues earmarked for expenditure on the preservation of the history of Eden Prairie. Cemetery Perpetual Care - This fund was established to account for funds dedicated for cemetery maintenance in accordance with state statutes. 101 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 1 of 9 December 31,2012 Special Revenue Pleasant HRA Hills Grant Cemetery Recycling Total ASSETS Cash and Investments $ 100,316 $ 6,853 $ 15,514 $ 122,683 Receivables Accounts - - - - Interest - 9 - 9 Due from Other Governments 25,186 - - 25,186 Unremitted Taxes - - - - Unremitted Special Assessments - - - - Delinquent Special Assessments - - - - Deferred Special Assessments - - - - Special Deferred Special Assessments - - - - Due from Other Funds - - - - Prepaid Items 130 - - 130 Land Held for Resale - - - - Cash and Investments with Escrow Agent - - - - Total Assets $ 125,632 $ 6,862 $ 15,514 $ 148,008 LIABILITIES Accounts and Contracts Payable $ 124,937 $ 900 $ 5,011 $ 130,848 Salaries Payable 1,104 - 110 1,214 Interest Payable - - - - Due to Other Governments 550 - - 550 Due to Other Funds - - - - Unearned Revenue - - - - Total Liabilities 126,591 900 5,121 132,612 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - Unavailable Revenue-Special Assessments - - - - Total Deferred Inflows of Resources - - - - FUND BALANCES Nonspendable 130 - - 130 Restricted - 5,962 10,393 16,355 Assigned - - - - Unassigned (1,089) - - (1,089) Total Fund Balance (959) 5,962 10,393 15,396 Total Liabilities,Deferred Inflows of $ 125,632 $ 6,862 $ 15,514 $ 148,008 Resources,and Fund Balances 102 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 2 of 9 December 31,2012 Debt Service General General General HRA Obligation Open Obligation Obligation General Lease Park Space Improv. Improv. Obligation Revenue Refunding Refunding Bonds Revolving Bonds 2002 2003 2003 2003D 2005A 2005C ASSETS Cash and Investments $ - $ - $ 171,025 $ - $ 19,067 $ 301,269 Receivables Accounts - - - - - - Interest - - 86 - 104 10,195 Due from Other Governments - - - - - - Unremitted Taxes - - 798 - 443 852 Unremitted Special Assessments - - - 266 - - Delinquent Special Assessments - - - 11 - - Deferred Special Assessments - - - 816,511 507,107 - Special Deferred Special Assessments - - - 120,761 - - Due from Other Funds - - - - - - Prepaid Items - - - - - 400 Land Held for Resale - - - - - - Cash and Investments with Escrow Agent - - - - - 4,897,040 Total Assets $ - $ - $ 171,909 $ 937,549 $ 526,721 $ 5,209,756 LIABILITIES Accounts and Contracts Payable $ - $ - $ - $ - $ - $ - Salaries Payable - - - - - - Interest Payable - - - 893 - - Due to Other Governments - - - - - - Due to Other Funds - - - 522,192 - - Unearned Revenue - - - - - - Total Liabilities - - - 523,085 - - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - - - - Unavailable Revenue-Special Assessments - - - - 937,283 507,107 - Total Deferred Inflows of Resources - - - - 937,283 507,107 - FUND BALANCES Nonspendable - - - - - 400 Restricted - - 171,909 - 19,614 5,209,356 Assigned - - - - - - Unassigned - - - (522,819) - - Total Fund Balance - - 171,909 (522,819) 19,614 5,209,756 Total Liabilities,Deferred Inflows of $ - $ - $ 171,909 $ 937,549 $ 526,721 $ 5,209,756 Resources,and Fund Balances 103 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 3 of 9 December 31,2012 Debt Service 3rd Rink General General General Lease Capital General Obligation Obligation Obligation Revenue Equip Obligation Bonds Bonds Bonds Bonds Notes Bonds 2006A 2006B 2006C 2007A 2008A 2008B ASSETS Cash and Investments $ 346,721 $ 387,438 $ - $ 1,912 $ 27,256 $ 1,204 Receivables Accounts - - - - - - Interest 5,651 9,399 - 156 - - Due from Other Governments - - - - - - Unremitted Taxes 3,281 1,442 - - 1,726 - Unremitted Special Assessments - - - - - - Delinquent Special Assessments - - - - - - Deferred Special Assessments - - - - - - Special Deferred Special Assessments - - - - - - Due from Other Funds 602,280 - - - - - Prepaid Items - - - - - - Land Held for Resale - - - - - - Cash and Investments with Escrow Agent 4,240,484 2,966,982 - 96,015 - - Total Assets $ 5,198,417 $ 3,365,261 $ - $ 98,083 $ 28,982 $ 1,204 LIABILITIES Accounts and Contracts Payable $ - $ - $ - $ - $ - $ - Salaries Payable - - - - - - Interest Payable - - - - 122 23 Due to Other Governments - - - - - - Due to Other Funds - - - - - - Unearned Revenue - - - - - - Total Liabilities - - - - 122 23 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - - - Unavailable Revenue-Special Assessments - - - - - - Total Deferred Inflows of Resources - - - - - - FUND BALANCES Nonspendable - - - - - - Restricted 5,198,417 3,365,261 - 98,083 28,860 1,181 Assigned - - - - - - Unassigned - - - - - - Total Fund Balance 5,198,417 3,365,261 - 98,083 28,860 1,181 Total Liabilities,Deferred Inflows of $ 5,198,417 $ 3,365,261 $ - $ 98,083 $ 28,982 $ 1,204 Resources,and Fund Balances 104 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 4 of 9 December 31,2012 Debt Service General General General Capital CIP Obligation General Obligation Obligation Equip Refunding Improvement Obligation Refunding Refunding Notes Bonds Bonds Bonds Bonds Bonds 2009B 2009C 2010A 2011B 2011C 2011D ASSETS Cash and Investments $ 158,421 $ 126,016 $ 63,454 $ 24,395 $ - $ - Receivables Accounts - - - - - - Interest 319 279 81 62 - - Due from Other Governments - - - - - - Unremitted Taxes 1,543 1,283 - 390 - - Unremitted Special Assessments - - - - - - Delinquent Special Assessments - - - - - - Deferred Special Assessments - - 981,144 - - - Special Deferred Special Assessments - - - - - - Due from Other Funds - - - - - - Prepaid Items - - - - - - Land Held for Resale - - - - - - Cash and Investments with Escrow Agent - - - - 141,214 79,675 Total Assets $ 160,283 $ 127,578 $ 1,044,679 $ 24,847 $ 141,214 $ 79,675 LIABILITIES Accounts and Contracts Payable $ - $ - $ - $ - $ - $ - Salaries Payable - - - - - - Interest Payable - - - - 24 15 Due to Other Governments - - - - - - Due to Other Funds - - - - 40,181 39,907 Unearned Revenue - - - - - - Total Liabilities - - - - 40,205 39,922 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - - - Unavailable Revenue-Special Assessments - - 981,144 - - - Total Deferred Inflows of Resources - - 981,144 - - - FUND BALANCES Nonspendable - - - - - - Restricted 160,283 127,578 63,535 24,847 101,009 39,753 Assigned - - - - - - Unassigned - - - - - - Total Fund Balance 160,283 127,578 63,535 24,847 101,009 39,753 Total Liabilities,Deferred Inflows of $ 160,283 $ 127,578 $ 1,044,679 $ 24,847 $ 141,214 $ 79,675 Resources,and Fund Balances 105 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 5 of 9 December 31,2012 Debt Service General General General Obligation Obligation Obligation Refunding Refunding Improvement Bonds Bonds Bonds 2012A 2012B 2012C Total ASSETS Cash and Investments $ 61 $ 38 $ 242,649 $ 1,870,926 Receivables Accounts - - - - Interest 13 8 - 26,353 Due from Other Governments - - - - Unremitted Taxes - - - 11,758 Unremitted Special Assessments - - - 266 Delinquent Special Assessments - - - 11 Deferred Special Assessments - - - 2,304,762 Special Deferred Special Assessments - - - 120,761 Due from Other Funds - - - 602,280 Prepaid Items - - - 400 Land Held for Resale - - - - Cash and Investments with Escrow Agent 217,903 189,568 - 12,828,881 Total Assets $ 217,977 $ 189,614 $ 242,649 $ 17,766,398 LIABILITIES Accounts and Contracts Payable $ - $ - $ - $ - Salaries Payable - - - - Interest Payable - - - 1,077 Due to Other Governments - - - - Due to Other Funds - - - 602,280 Unearned Revenue - - - - Total Liabilities - - - 603,357 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - Unavailable Revenue-Special Assessments - - - 2,425,534 Total Deferred Inflows of Resources - - - 2,425,534 FUND BALANCES Nonspendable - - - 400 Restricted 217,977 189,614 242,649 15,259,926 Assigned - - - - Unassigned - - - (522,819) Total Fund Balance 217,977 189,614 242,649 14,737,507 Total Liabilities,Deferred Inflows of $ 217,977 $ 189,614 $ 242,649 $ 17,766,398 Resources,and Fund Balances 106 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 6 of 9 December 31,2012 Capital Projects CIP Senior Park CIP Pavement Police E-911 Board Improvement Trails Management ASSETS Cash and Investments $ 221,352 $ 312,734 $ 10,766 $ 2,670,584 $ - $ - Receivables Accounts - - - - - 461,313 Interest 310 424 16 3,643 72 1,896 Due from Other Governments - 13,653 - - - - Unremitted Taxes - - - - - - Unremitted Special Assessments - - - - - - Delinquent Special Assessments - - - - - - Deferred Special Assessments - - - - 210,000 - Special Deferred Special Assessments - - - - - - Due from Other Funds - - - - - - Prepaid Items - - - - - - Land Held for Resale - - - - - - Cash and Investments with Escrow Agent - - - - - - Total Assets $ 221,662 $ 326,811 $ 10,782 $ 2,674,227 $ 210,072 $ 463,209 LIABILITIES Accounts and Contracts Payable $ 9,478 $ 15,766 $ 7 $ - $ 5,454 $ 3,689 Salaries Payable 1,967 - - - - - Interest Payable - - - - - - Due to Other Governments - - - - - - Due to Other Funds - - - - 274,882 161,560 Unearned Revenue - - - 308,243 - - Total Liabilities 11,445 15,766 7 308,243 280,336 165,249 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - - - Unavailable Revenue-Special Assessments - - - - 210,000 - Total Deferred Inflows of Resources - - - - 210,000 - FUND BALANCES Nonspendable - - - - - - Restricted 165,915 235,315 - 462,539 - - Assigned 44,302 75,730 10,775 1,903,445 - 297,960 Unassigned - - - - (280,264) - Total Fund Balance 210,217 311,045 10,775 2,365,984 (280,264) 297,960 Total Liabilities,Deferred Inflows of $ 221,662 $ 326,811 $ 10,782 $ 2,674,227 $ 210,072 $ 463,209 Resources,and Fund Balances 107 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 7 of 9 December 31,2012 Capital Projects Economic Development Project Parks Trails Sprint/ Fund Fund Referendum Referendum Nextel HRA ASSETS Cash and Investments $ 4,395,434 $ 4,407,111 $ - $ - $ - $ 239,321 Receivables Accounts - - - - - - Interest 6,105 6,357 - - - 276 Due from Other Governments - - - - - - Unremitted Taxes - - - - - 719 Unremitted Special Assessments - - - - - - Delinquent Special Assessments - - - - - - Deferred Special Assessments - - - - - - Special Deferred Special Assessments - - - - - - Due from Other Funds - 483,032 - - - - Prepaid Items - - - - - - Land Held for Resale 537,000 - - - - - Cash and Investments with Escrow Agent - - - - - - Total Assets $ 4,938,539 $ 4,896,500 $ - $ - $ - $ 240,316 LIABILITIES Accounts and Contracts Payable $ - $ 300 $ - $ - $ - $ - Salaries Payable - - - - - 5,559 Interest Payable - - - - - - Due to Other Governments - 9,198 - - - - Due to Other Funds - - - - 46,590 - Unearned Revenue - - - - - - Total Liabilities - 9,498 - - 46,590 5,559 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - - - Unavailable Revenue-Special Assessments - - - - - - Total Deferred Inflows of Resources - - - - - - FUND BALANCES Nonspendable 537,000 - - - - - Restricted - 3,381,001 - - - - Assigned 4,401,539 1,506,001 - - - 234,757 Unassigned - - - - (46,590) - Total Fund Balance 4,938,539 4,887,002 - - (46,590) 234,757 Total Liabilities,Deferred Inflows of $ 4,938,539 $ 4,896,500 $ - $ - $ - $ 240,316 Resources,and Fund Balances 108 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 8 of 9 December 31,2012 Capital Projects Shady Oak Flying Cloud Road Cable Drive Transportation South PEG Total ASSETS Cash and Investments $ 426,114 $ 849,884 $ 3,363,045 $ 16,671 $ 16,913,016 Receivables Accounts - - - 26,386 487,699 Interest 664 398 - 4 20,165 Due from Other Governments - - - - 13,653 Unremitted Taxes - - - - 719 Unremitted Special Assessments - - - - - Delinquent Special Assessments - - - - - Deferred Special Assessments 1,210,000 107,170 - - 1,527,170 Special Deferred Special Assessments - - - - - Due from Other Funds - - - 483,032 Prepaid Items - - - - - Land Held for Resale - - - - 537,000 Cash and Investments with Escrow Agent - - - - - Total Assets $ 1,636,778 $ 957,452 $ 3,363,045 $ 43,061 $ 19,982,454 LIABILITIES Accounts and Contracts Payable $ - $ - $ 56,546 $ - $ 91,240 Salaries Payable - - - - 7,526 Interest Payable - - 89 - 89 Due to Other Governments - - - - 9,198 Due to Other Funds - - - 483,032 Unearned Revenue - - - - 308,243 Total Liabilities - - 56,635 - 899,328 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - - Unavailable Revenue-Special Assessments 1,210,000 107,170 - - 1,527,170 Total Deferred Inflows of Resources 1,210,000 107,170 - - 1,527,170 FUND BALANCES Nonspendable - - - - 537,000 Restricted 393,062 89,730 - 43,038 4,770,600 Assigned 33,716 760,552 3,306,410 23 12,575,210 Unassigned - - - - (326,854) Total Fund Balance 426,778 850,282 3,306,410 43,061 17,555,956 Total Liabilities,Deferred Inflows of $ 1,636,778 $ 957,452 $ 3,363,045 $ 43,061 $ 19,982,454 Resources,and Fund Balances 109 City of Eden Prairie,Minnesota Combining Balance Sheet Nonmajor Governmental Funds Page 9 of 9 December 31,2012 Permanent Fund Cemetery Total Historical Perpetual Nonmajor and Care Governmental Cultural Fund Total Funds ASSETS Cash and Investments $ 7,716 $ 254,557 $ 262,273 $ 19,168,898 Receivables Accounts - - - 487,699 Interest 11 372 383 46,910 Due from Other Governments - - - 38,839 Unremitted Taxes - - - 12,477 Unremitted Special Assessments - - - 266 Delinquent Special Assessments - - - 11 Deferred Special Assessments - - - 3,831,932 Special Deferred Special Assessments - - - 120,761 Due from Other Funds - - - 1,085,312 Prepaid Items - - - 530 Land Held for Resale - - - 537,000 Cash and Investments with Escrow Agent - - - 12,828,881 Total Assets $ 7,727 $ 254,929 $ 262,656 $ 38,159,516 LIABILITIES Accounts and Contracts Payable $ - $ - $ - $ 222,088 Salaries Payable - - - 8,740 Interest Payable - - - 1,166 Due to Other Governments - - - 9,748 Due to Other Funds - - - 1,085,312 Unearned Revenue - - - 308,243 Total Liabilities - - - 1,635,297 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue-Property Taxes - - - - Unavailable Revenue-Special Assessments - - - 3,952,704 Total Deferred Inflows of Resources - - - 3,952,704 FUND BALANCES Nonspendable - - - 537,530 Restricted - 135,179 135,179 20,182,060 Assigned 7,727 119,750 127,477 12,702,687 Unassigned - - - (850,762) Total Fund Balance 7,727 254,929 262,656 32,571,515 Total Liabilities,Deferred Inflows of $ 7,727 $ 254,929 $ 262,656 $ 38,159,516 Resources,and Fund Balances 110 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page I of9 Nonmajor Governmental Funds For the Year Ended December 31,2012 Special Revenue Pleasant HRA Hills Grant Cemetery Recycling Total REVENUES General Property Taxes $ - $ - $ - $ - Special Assessments - - - - Licenses and Permits - - - - Intergovernmental Revenue 623,256 - 152,614 775,870 Fines and Forfeits - - - - Investment Income - 4 - 4 Interest on Escrow Fund - - - - Rental - - - - Other Fees - 10,900 - 10,900 Contributions and Donations - - - - Miscellaneous - - - - Total Revenues 623,256 10,904 152,614 786,774 EXPENDITURES Current Community Development 625,203 - - 625,203 Police - - - - Public Works - - 155,506 155,506 Parks and Recreation - 11,311 - 11,311 Interest on Interfund Borrowing - - - - Capital Outlay Police - - - - Public Works - - - - Parks and Recreation - - - - Debt Service Principal - - - - Interest - - - - Bond Issuance Cost - - - - Fiscal Agent Fees - - - - Total Expenditures 625,203 11,311 155,506 792,020 Excess of Revenues Over(Under)Expenditures (1,947) (407) (2,892) (5,246) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - - Premiums - - - - Sale of Capital Assets - - - - Transfers In - - - - Transfers Out - - - - Total Other Financing Sources(Uses) - - - - Net Change in Fund Balances (1,947) (407) (2,892) (5,246) Fund Balances(Deficit)-Beginning 988 6,369 13,285 20,642 Fund Balances(Deficit)-Ending $ (959) $ 5,962 $ 10,393 $ 15,396 111 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page of Nonmajor Governmental Funds For the Year Ended December 31,2012 Debt Service General General General HRA Obligation Open Obligation Obligation General Lease Park Space Improv. Improv. Obligation Revenue Refunding Refunding Bonds Revolving Bonds 2002 2003 2003 2003D 2005A 2005C REVENUES General Property Taxes $ - $ 114,162 $ 198,542 $ - $ 108,203 $ 211,747 Special Assessments - - - 143,481 194,393 - Licenses and Permits - - - - - - Intergovernmental Revenue - - - - - - Fines and Forfeits - - - - - - Investment Income - 34 237 - 316 713 Interest on Escrow Fund - - - - - 9,884 Rental - - - - - - Other Fees - - - - - - Contributions and Donations - - - - - - Miscellaneous - - - - - - Total Revenues - 114,196 198,779 143,481 302,912 222,344 EXPENDITURES Current Community Development - - - - - - Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Interest on Interfund Borrowing 5,546 - - 2,088 - - Capital Outlay Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Debt Service Principal 1,195,000 335,000 170,000 175,000 250,000 - Interest 17,925 6,114 17,738 16,131 37,240 203,145 Bond Issuance Cost - - - - - 94,776 Fiscal Agent Fees - - 431 431 350 400 Total Expenditures 1,218,471 341,114 188,169 193,650 287,590 298,321 Excess of Revenues Over(Under)Expenditures (1,218,471) (226,918) 10,610 (50,169) 15,322 (75,977) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - - - 4,892,097 Premiums - - - - - 99,718 Sale of Capital Assets - - - - - - Transfers In - - - - - - Transfers Out (51,506) (44,841) _ - - - - Total Other Financing Sources(Uses) (51,506) (44,841) - - - 4,991,815 Net Change in Fund Balances (1,269,977) (271,759) 10,610 (50,169) 15,322 4,915,838 Fund Balances(Deficit)-Beginning 1,269,977 271,759 161,299 (472,650) 4,292 293,918 Fund Balances(Deficit)-Ending $ - $ - $ 171,909 $ (522,819) $ 19,614 $ 5,209,756 112 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page 3 of9 Nonmajor Governmental Funds For the Year Ended December 31,2012 Debt Service 3rd Rink General General General Lease Capital General Obligation Obligation Obligation Revenue Equip Obligation Bonds Bonds Bonds Bonds Notes Bonds 2006A 2006B 2006C 2007A 2008A 2008B REVENUES General Property Taxes $ 815,708 $ 352,403 $ - $ - $ 421,891 $ - Special Assessments - - - - - - Licenses and Permits - - - - - - Intergovernmental Revenue - - - - - - Fines and Forfeits - - - - - - Investment Income 1,619 670 - 334 - - Interest on Escrow Fund 10,513 9,117 - - - - Rental - - - - - - Other Fees - - - - - - Contributions and Donations - - - - - - Miscellaneous - - - - - - Total Revenues 827,840 362,190 - 334 421,891 - EXPENDITURES Current Community Development - - - - - - Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Interest on Interfund Borrowing - - 73 - 167 29 Capital Outlay Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Debt Service Principal 540,000 175,000 235,000 65,000 290,000 105,000 Interest 232,663 160,851 4,994 63,200 78,842 65,110 Bond Issuance Cost 8,390 59,933 - - - - Fiscal Agent Fees 925 400 - 2,150 400 400 Total Expenditures 781,978 396,184 240,067 130,350 369,409 170,539 Excess of Revenues Over(Under)Expenditures 45,862 (33,994) (240,067) (130,016) 52,482 (170,539) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - 2,980,432 - - - - Premiums - 48,773 - - - - Sale of Capital Assets - - - - - - Transfers In - - - 130,000 - 171,000 Transfers Out - - (36,380) - - - Total Other Financing Sources(Uses) - 3,029,205 (36,380) 130,000 - 171,000 Net Change in Fund Balances 45,862 2,995,211 (276,447) (16) 52,482 461 Fund Balances(Deficit)-Beginning 5,152,555 370,050 276,447 98,099 (23,622) 720 Fund Balances(Deficit)-Ending $ 5,198,417 $ 3,365,261 $ - $ 98,083 $ 28,860 $ 1,181 113 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page 4of9 Nonmajor Governmental Funds For the Year Ended December 31,2012 Debt Service General General General Capital CIP Obligation General Obligation Obligation Equip Refunding Improvement Obligation Refunding Refunding Notes Bonds Bonds Bonds Bonds Bonds 2009E 2009C 2010A 2011E 2011C 2011D REVENUES General Property Taxes $ 377,220 $ 313,688 $ - $ 95,397 $ - $ - Special Assessments - - 130,952 - - - Licenses and Permits - - - - - - Intergovernmental Revenue - - - - - - Fines and Forfeits - - - - - - Investment Income 911 659 313 252 - - Interest on Escrow Fund - - - - - - Rental - - - - - - Other Fees - - - - - - Contributions and Donations - - - - - - Miscellaneous - - - - - - Total Revenues 378,131 314,347 131,265 95,649 - - EXPENDITURES Current Community Development - - - - - - Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Interest on Interfund Borrowing - - - - 140 84 Capital Outlay Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Debt Service Principal 295,000 280,000 65,000 80,000 - - Interest 58,650 23,025 36,635 11,437 39,540 39,838 Bond Issuance Cost - - - - - - Fiscal Agent Fees 400 400 400 - 525 - Total Expenditures 354,050 303,425 102,035 91,437 40,205 39,922 Excess of Revenues Over(Under)Expenditures 24,081 10,922 29,230 4,212 (40,205) (39,922) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - - - - Premiums - - - - - - Sale of Capital Assets - - - - - - Transfers In - - 2,998 - - - Transfers Out - - - - - - Total Other Financing Sources(Uses) - - 2,998 - - - Net Change in Fund Balances 24,081 10,922 32,228 4,212 (40,205) (39,922) Fund Balances(Deficit)-Beginning 136,202 116,656 31,307 20,635 141,214 79,675 Fund Balances(Deficit)-Ending $ 160,283 $ 127,578 $ 63,535 $ 24,847 $ 101,009 $ 39,753 114 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page of Nonmajor Governmental Funds For the Year Ended December 31,2012 Debt Service General General General Obligation Obligation Obligation Refunding Refunding Improvement Bonds Bonds Bonds 2012A 2012E 2012C Total REVENUES General Property Taxes $ - $ - $ - $ 3,008,961 Special Assessments - - - 468,826 Licenses and Permits - - - - Intergovernmental Revenue - - - - Fines and Forfeits - - - - Investment Income 74 46 10,250 16,428 Interest on Escrow Fund - - - 29,514 Rental - - - - Other Fees - - - - Contributions and Donations - - - - Miscellaneous - - - - Total Revenues 74 46 10,250 3,523,729 EXPENDITURES Current Community Development - - - - Police - - - - Public Works - - - - Parks and Recreation - - - - Interest on Interfund Borrowing - - - 8,127 Capital Outlay Police - - - - Public Works - - - - Parks and Recreation - - - - Debt Service Principal - - - 4,255,000 Interest - - - 1,113,078 Bond Issuance Cost - - - 163,099 Fiscal Agent Fees - - - 7,612 Total Expenditures - - - 5,546,916 Excess of Revenues Over(Under)Expenditures 74 46 10,250 (2,023,187) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds 217,903 189,568 - 8,280,000 Premiums - - 232,399 380,890 Sale of Capital Assets - - - - Transfers In - - - 303,998 Transfers Out - - - (132,727) Total Other Financing Sources(Uses) 217,903 189,568 232,399 8,832,161 Net Change in Fund Balances 217,977 189,614 242,649 6,808,974 Fund Balances(Deficit)-Beginning - - - 7,928,533 Fund Balances(Deficit)-Ending $ 217,977 $ 189,614 $ 242,649 $ 14,737,507 115 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page 6 of9 Nonmajor Governmental Funds For the Year Ended December 31,2012 Capital Projects CIP Senior Park CIP Pavement Police E-911 Board Improvement Trails Mgmt REVENUES General Property Taxes $ - $ - $ - $ - $ - $ - Special Assessments - - - - 31,424 - Licenses and Permits - - - - - 461,314 Intergovernmental Revenue 2,000 81,917 - 1,000 - - Fines and Forfeits 3,050 - - - - - Investment Income 601 903 15 8,997 - - Interest on Escrow Fund - - - - - - Rental - - - - - - Other Fees - - - 413,785 - - Contributions and Donations - - 5,714 28,924 - - Miscellaneous 28,302 - - - - - Total Revenues 33,953 82,820 5,729 452,706 31,424 461,314 EXPENDITURES Current Community Development - - - - - - Police 34,455 40,384 - - - - Public Works - - - - - - Parks and Recreation - - 2,673 - - - Interest on Interfund Borrowing - - - - 762 3,619 Capital Outlay Police - 14,581 - - - - Public Works - - - - 524,220 1,954,698 Parks and Recreation - - - 330,505 - - Debt Service Principal - - - - - - Interest - - - - - - Bond Issuance Cost - - - - - - Fiscal Agent Fees - - - - - - Total Expenditures 34,455 54,965 2,673 330,505 524,982 1,958,317 Excess of Revenues Over(Under)Expenditures (502) 27,855 3,056 122,201 (493,558) (1,497,003) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - - - - Premiums - - - - - - Sale of Capital Assets - - - - - - Transfers In - - - 185,582 230,000 1,740,000 Transfers Out - - (3,875) - - (1,800,000) Total Other Financing Sources(Uses) - - (3,875) 185,582 230,000 (60,000) Net Change in Fund Balances (502) 27,855 (819) 307,783 (263,558) (1,557,003) Fund Balances(Deficit)-Beginning 210,719 283,190 11,594 2,058,201 (16,706) 1,854,963 Fund Balances(Deficit)-Ending $ 210,217 $ 311,045 $ 10,775 $ 2,365,984 $ (280,264) $ 297,960 116 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page of Nonmajor Governmental Funds For the Year Ended December 31,2012 Capital Projects Economic Development Project Parks Trails Sprint/ Fund Fund Referendum Referendum Nextel HRA REVENUES General Property Taxes $ - $ 3,353,556 $ - $ - $ - $ 198,823 Special Assessments - - - - - - Licenses and Permits - - - - - - Intergovernmental Revenue 500,000 - - - - - Fines and Forfeits - - - - - - Investment Income 14,711 14,186 134 22 - 746 Interest on Escrow Fund - - - - - - Rental 66,500 - - - - - Other Fees - - - - - - Contributions and Donations - - - - - - Miscellaneous - - - - - - Total Revenues 581,211 3,367,742 134 22 - 199,569 EXPENDITURES Current Community Development 767,121 2,597,941 - - - 183,195 Police - - - - - - Public Works - - - - - - Parks and Recreation - - - - - - Interest on Interfund Borrowing - - - - - - Capital Outlay Police - - - - - - Public Works - - - 70,035 - - Parks and Recreation - - 87,591 - - - Debt Service Principal - - - - - - Interest - - - - - - Bond Issuance Cost - - - - - - Fiscal Agent Fees - - - - - - Total Expenditures 767,121 2,597,941 87,591 70,035 - 183,195 Excess of Revenues Over(Under)Expenditures (185,910) 769,801 (87,457) (70,013) - 16,374 OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - - - - Premiums - - - - - - Sale of Capital Assets 450,000 - - - - - Transfers In - - - - - - Transfers Out - (3,210) (646,588) (48,590) - - Total Other Financing Sources(Uses) 450,000 (3,210) (646,588) (48,590) - - Net Change in Fund Balances 264,090 766,591 (734,045) (118,603) - 16,374 Fund Balances(Deficit)-Beginning 4,674,449 4,120,411 734,045 118,603 (46,590) 218,383 Fund Balances(Deficit)-Ending $ 4,938,539 $ 4,887,002 $ - $ - $ (46,590) $ 234,757 117 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page of Nonmajor Governmental Funds For the Year Ended December 31,2012 Capital Projects Shady Oak Flying Cloud Road Cable Drive Transportation South PEG Total REVENUES General Property Taxes $ - $ - $ - $ - $ 3,552,379 Special Assessments 192,503 47,444 - - 271,371 Licenses and Permits - - - 43,038 504,352 Intergovernmental Revenue - - - - 584,917 Fines and Forfeits - - - - 3,050 Investment Income 1,542 700 - 23 42,580 Interest on Escrow Fund - - - - - Rental - - - - 66,500 Other Fees - - - - 413,785 Contributions and Donations - - - - 34,638 Miscellaneous - - - - 28,302 Total Revenues 194,045 48,144 - 43,061 5,501,874 EXPENDITURES Current Community Development - - - - 3,548,257 Police - - - - 74,839 Public Works - - - - - Parks and Recreation - - - - 2,673 Interest on Interfund Borrowing - - 512 - 4,893 Capital Outlay Police - - - - 14,581 Public Works - 13,710 289,466 - 2,852,129 Parks and Recreation - - - - 418,096 Debt Service Principal - - - - - Interest - - - - - Bond Issuance Cost - - - - - Fiscal Agent Fees - - - - - Total Expenditures - 13,710 289,978 - 6,915,468 Excess of Revenues Over(Under)Expenditures 194,045 34,434 (289,978) 43,061 (1,413,594) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - - - Premiums - - - - - Sale of Capital Assets - - - - 450,000 Transfers In - 550,000 3,600,000 - 6,305,582 Transfers Out (171,000) - - - (2,673,263) Total Other Financing Sources(Uses) (171,000) 550,000 3,600,000 - 4,082,319 Net Change in Fund Balances 23,045 584,434 3,310,022 43,061 2,668,725 Fund Balances(Deficit)-Beginning 403,733 265,848 (3,612) - 14,887,231 Fund Balances(Deficit)-Ending $ 426,778 $ 850,282 $ 3,306,410 $ 43,061 $ 17,555,956 118 City of Eden Prairie,Minnesota Combing Statement of Revenues, Expenditures,and Changes in Fund Balances Page 9 of9 Nonmajor Governmental Funds For the Year Ended December 31,2012 Permanent Fund Cemetery Total Historical Perpetual Nonmajor and Care Governmental Cultural Fund Total Funds REVENUES General Property Taxes $ - $ - $ - $ 6,561,340 Special Assessments - - - 740,197 Licenses and Permits - - - 504,352 Intergovernmental Revenue - - - 1,360,787 Fines and Forfeits - - - 3,050 Investment Income 13 784 797 59,809 Interest on Escrow Fund - - - 29,514 Rental - - - 66,500 Other Fees 138 1,200 1,338 426,023 Contributions and Donations - - - 34,638 Miscellaneous - - - 28,302 Total Revenues 151 1,984 2,135 9,814,512 EXPENDITURES Current Community Development - - - 4,173,460 Police - - - 74,839 Public Works - - - 155,506 Parks and Recreation - - - 13,984 Interest on Interfund Borrowing - - - 13,020 Capital Outlay Police - - - 14,581 Public Works - - - 2,852,129 Parks and Recreation - - - 418,096 Debt Service Principal - - - 4,255,000 Interest - - - 1,113,078 Bond Issuance Cost - - - 163,099 Fiscal Agent Fees - - - 7,612 Total Expenditures - - - 13,254,404 Excess of Revenues Over(Under)Expenditures 151 1,984 2,135 (3,439,892) OTHER FINANCING SOURCES(USES) Issuance of Refunding Bonds - - - 8,280,000 Premiums - - - 380,890 Sale of Capital Assets - - - 450,000 Transfers In - - - 6,609,580 Transfers Out - - (2,805,990) Total Other Financing Sources(Uses) - - - 12,914,480 Net Change in Fund Balances 151 1,984 2,135 9,474,588 Fund Balances(Deficit)-Beginning 7,576 252,945 260,521 23,096,927 Fund Balances(Deficit)-Ending $ 7,727 $ 254,929 $ 262,656 $ 32,571,515 119 City of Eden Prairie, Minnesota Internal Service Funds Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units,on a cost reimbursement basis. Health & Benefits - This fund accounts for the activities pertaining to health, dental, life and disability insurance. This fund also accounts for the employer's portion of pension, FICA and medicare contributions. Severance - This fund accounts for the payment of unused personal time off for governmental fund employees. Workers Compensation - This fund accounts for the costs associated with workers' compensation. Revenues are primarily charges to other funds, interest earnings and insurance checks. Expenditures will consist of insurance premiums. Property Insurance - This fund accounts for the costs associated with the City's property and casualty insurance program. Revenues are primarily charges to other funds and interest earnings. Expenditures will consist of insurance premiums. Facilities - This fund accounts for the costs associated with maintaining city owned buildings. Revenues are primarily charges to other funds and interest earnings. Fleet - These funds account for the costs associated with maintaining machinery and equipment for the City. Revenues are primarily charges to other funds and interest earnings. Information Technology - These funds account for the costs associated with maintaining and upgrading the network, computer infrastructure and communications service technologies that support the City's mission-critical operations. Revenues are primarily charges to other funds and interest earnings. 120 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Net Position December 31,2012 Health& Workers Property Benefits Severance Compensation Insurance ASSETS Current Assets Cash and Investments $ 924,935 $ 1,717,288 $ 116,383 $ 46,715 Receivables Accounts 4,280 - 15,604 - Interest 691 2,636 133 178 Due From Other Governments - - - - Inventory - - - - Prepaid Items - - 83,449 69,111 Total Current Assets 929,906 1,719,924 215,569 116,004 Noncurrent Assets: Capital Assets Property, Plant and Equipment - - - - Less Accumulated Depreciation - - - - Total Noncurrent Assets - - - - Total Assets $ 929,906 $ 1,719,924 $ 215,569 $ 116,004 LIABILITIES Current Liabilities: Accounts Payable $ 89,225 $ - $ - $ 30,010 Salaries Payable - - 2,168 2,168 Due to Other Governments 273,276 - - - Unearned Revenue - - - - Current Portion of Compensated Absences - 962,227 - - Total Current Liabilities 362,501 962,227 2,168 32,178 Noncurrent Liabilities: Net OPEB 763,483 - 2,325 2,325 Compensated Absences - 924,493 - - Total Noncurrent Liabilities 763,483 924,493 2,325 2,325 Total Liabilities 1,125,984 1,886,720 4,493 34,503 Net Position Net Investment in Capital Assets - - - - Unrestricted (196,078) (166,796) 211,076 81,501 Total Net Position (196,078) (166,796) 211,076 81,501 Total Liabilities and Net Position $ 929,906 $ 1,719,924 $ 215,569 $ 116,004 121 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Net Position December 31,2012 Information Facilities Fleet Technology Total ASSETS Current Assets Cash and Investments $ 2,648,367 $ 1,820,563 $ 727,964 $ 8,002,215 Receivables Accounts 1,093 2,002 - 22,979 Interest 3,748 2,563 843 10,792 Due From Other Governments - - 1,250 1,250 Inventory - 126,553 - 126,553 Prepaid Items - 1,603 25,824 179,987 Total Current Assets 2,653,208 1,953,284 755,881 8,343,776 Noncurrent Assets: Capital Assets Property, Plant and Equipment 1,590,857 982,568 - 2,573,425 Less Accumulated Depreciation (154,999) (130,242) - (285,241) Total Noncurrent Assets 1,435,858 852,326 - 2,288,184 Total Assets $ 4,089,066 $ 2,805,610 $ 755,881 $ 10,631,960 LIABILITIES Current Liabilities: Accounts Payable $ 323,516 $ 101,011 $ 96,553 $ 640,315 Salaries Payable 28,397 15,647 23,342 71,722 Due to Other Governments 3 2,202 10,717 286,198 Unearned Revenue 76,294 - - 76,294 Current Portion of Compensated Absences - - - 962,227 Total Current Liabilities 428,210 118,860 130,612 2,036,756 Noncurrent Liabilities: Net OPEB 35,857 24,936 18,954 847,880 Compensated Absences - - - 924,493 Total Noncurrent Liabilities 35,857 24,936 18,954 1,772,373 Total Liabilities 464,067 143,796 149,566 3,809,129 Net Position Net Investment in Capital Assets 1,435,858 852,326 - 2,288,184 Unrestricted 2,189,141 1,809,488 606,315 4,534,647 Total Net Position 3,624,999 2,661,814 606,315 6,822,831 Total Liabilities and Net Position $ 4,089,066 $ 2,805,610 $ 755,881 $ 10,631,960 122 City of Eden Prairie,Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net Position For the Year Ended December 31,2012 Health& Workers Property Benefits Severance Compensation Insurance OPERATING REVENUE Charges for Services $ 4,768,071 $ 29,314 $ 626,208 $ 521,732 Rental 129,705 - 27,580 - Total Operating Revenues 4,897,776 29,314 653,788 521,732 OPERATING EXPENSE Personal Services 2,639,132 194,568 64,893 64,895 Supplies Supplies - - - - Motor Fuel - - - - Tires - - - - Contractual Services Contractual Services 35,334 - 123 475 Insurance 2,277,190 - 491,710 569,193 Janitorial Services/Cleaning Supplies - - - - LOGIS - - - - Licenses, Permits,Taxes - - - - Repairs and Maintenance - - - - Utilities - - - - User Charges - - - - Total Operating Expenses 4,951,656 194,568 556,726 634,563 Operating Income(Loss)Before Depreciation (53,880) (165,254) 97,062 (112,831) Depreciation - - - - Operating Income(Loss)Before Nonoperating (53,880) (165,254) 97,062 (112,831) NONOPERATING REVENUE(EXPENSE) Investment Income 1,006 5,277 816 (1,614) Gain/Loss on Disposition of Capital Assets - - - - Miscellaneous - - - - Total Nonoperating Revenues(Expenses) 1,006 5,277 816 (1,614) Income(Loss)Before Transfers (52,874) (159,977) 97,878 (114,445) Transfer In - - - - Change in Net Position (52,874) (159,977) 97,878 (114,445) Net Position-Beginning (143,204) (6,819) 113,198 195,946 Net Position-Ending $ (196,078) $ (166,796) $ 211,076 $ 81,501 123 City of Eden Prairie,Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net Position For the Year Ended December 31,2012 Information Facilities Fleet Technology Total OPERATING REVENUE Charges for Services $ 4,319,020 $ 2,376,302 $ 1,864,399 $ 14,505,046 Rental 1,017,147 - - 1,174,432 Total Operating Revenues 5,336,167 2,376,302 1,864,399 15,679,478 OPERATING EXPENSE Personal Services 870,295 535,117 715,807 5,084,707 Supplies Supplies 111,849 81,218 191,708 384,775 Motor Fuel 8,295 523,288 - 531,583 Tires - 74,957 - 74,957 Contractual Services Contractual Services 1,702,491 6,807 115,218 1,860,448 Insurance - - - 3,338,093 Janitorial Services/Cleaning Supplies 932,350 - - 932,350 LOGIS - - 329,656 329,656 Licenses, Permits,Taxes 190,092 2,649 - 192,741 Repairs and Maintenance 231,254 327,245 357,165 915,664 Utilities 993,481 4,069 25,925 1,023,475 User Charges 14,552 11,825 4,284 30,661 Total Operating Expenses 5,054,659 1,567,175 1,739,763 14,699,110 Operating Income(Loss)Before Depreciation 281,508 809,127 124,636 980,368 Depreciation 99,360 130,241 - 229,601 Operating Income(Loss)Before Nonoperating 182,148 678,886 124,636 750,767 NONOPERATING REVENUE(EXPENSE) Investment Income 6,912 6,215 2,831 21,443 Gain/Loss on Disposition of Capital Assets - 164,888 - 164,888 Miscellaneous 13,200 29,932 7,191 50,323 Total Nonoperating Revenues(Expenses) 20,112 201,035 10,022 236,654 Income(Loss)Before Transfers 202,260 879,921 134,658 987,421 Transfer In 1,400 - - 1,400 Change in Net Position 203,660 879,921 134,658 988,821 Net Position-Beginning 3,421,339 1,781,893 471,657 5,834,010 Net Position-Ending $ 3,624,999 $ 2,661,814 $ 606,315 $ 6,822,831 124 City of Eden Prairie, Minnesota Internal Service Funds Combing Statement of Cash Flows For the Year Ended December 31,2012 Health& Workers Property Benefits Severance Compensation Insurance CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $ 4,779,445 $ 29,314 $ 610,604 $ 521,732 Payments to Vendors (2,033,002) - (496,006) (545,251) Payments to Employees (2,474,869) (35,380) (64,153) (64,155) Other Receipts 129,705 - 27,580 - Net Cash Provided (Used)By Operating Activities 401,279 (6,066) 78,025 (87,674) CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 1,628 7,011 660 (626) Net Cash Provided (Used)By Investing Activities 1,628 7,011 660 (626) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers In - - - - Net Cash Provided (Used)By Noncapital Financing Activities - - - - CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets - - - - Proceeds From Sale of Equipment - - - - Net Cash Provided (Used)By Capital Financing Activities - - - - Net Increase(Decrease)in Cash and Cash Equivalents 402,907 945 78,685 (88,300) Cash and Cash Equivalents,January 1 522,028 1,716,343 37,698 135,015 Cash and Cash Equivalents, December 31 $ 924,935 $ 1,717,288 $ 116,383 $ 46,715 125 City of Eden Prairie, Minnesota Internal Service Funds Combing Statement of Cash Flows For the Year Ended December 31,2012 Page 1 of 2 Information Facilities Fleet Technology Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $ 4,332,458 $ 2,376,348 $ 1,864,450 $ 14,514,351 Payments to Vendors (4,129,028) (1,061,985) (950,500) (9,215,772) Payments to Employees (853,046) (530,247) (707,458) (4,729,308) Other Receipts 1,017,147 - - 1,174,432 Net Cash Provided (Used)By Operating Activities 367,531 784,116 206,492 1,743,703 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 6,912 7,422 2,831 25,838 Net Cash Provided (Used)By Investing Activities 6,912 7,422 2,831 25,838 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers In 1,400 - - 1,400 Net Cash Provided (Used)By Noncapital Financing Activities 1,400 - - 1,400 CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets (134,972) (982,568) - (1,117,540) Proceeds From Sale of Equipment - 164,888 - 164,888 Net Cash Provided (Used)By Capital Financing Activities (134,972) (817,680) - (952,652) Net Increase(Decrease)in Cash and Cash Equivalents 240,871 (26,142) 209,323 818,289 Cash and Cash Equivalents,January 1 2,407,496 1,846,705 518,641 7,183,926 Cash and Cash Equivalents, December 31 $ 2,648,367 $ 1,820,563 $ 727,964 $ 8,002,215 126 City of Eden Prairie, Minnesota Internal Service Funds Combing Statement of Cash Flows For the Year Ended December 31,2012 Health& Workers Property Benefits Severance Compensation Insurance RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES: Operating Income(Loss) $ (53,880) $ (165,254) $ 97,062 $ (112,831) Adjustments to Reconcile Operating Income(Loss) to Net Cash Provided (Used)by Operating Activities: Depreciation - - - - Miscellaneous - - - - (Increase)Decrease in Assets: Accounts Receivable 11,374 - (15,604) - Due From Other Governments - - - - Inventory - - - - Prepaid Items 278,673 - (4,173) (5,593) Increase(Decrease)in Liabilities: Accounts Payable (7,224) - - 30,010 Salaries Payable - (1,678) 235 235 Unearned Revenue - - - - Due to Other Governments 8,073 - - - Net Other Post Employment Benefits 164,263 - 505 505 Compensated Absences - 160,866 - - Net Cash Provided(Used)by Operating Activities $ 401,279 $ (6,066) $ 78,025 $ (87,674) 127 City of Eden Prairie, Minnesota Internal Service Funds Combing Statement of Cash Flows For the Year Ended December 31,2012 Page 2 of 2 Information Facilities Fleet Technology Total RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES: Operating Income(Loss) $ 182,148 $ 678,886 $ 124,636 $ 750,767 Adjustments to Reconcile Operating Income(Loss) to Net Cash Provided (Used)by Operating Activities: Depreciation 99,357 130,241 - 229,598 Miscellaneous 13,200 29,932 7,191 50,323 (Increase)Decrease in Assets: Accounts Receivable 2,622 46 51 (1,511) Due From Other Governments - - 1,041 1,041 Inventory - (16,420) - (16,420) Prepaid Items - (1,603) (815) 266,489 Increase(Decrease)in Liabilities: Accounts Payable 42,494 (43,128) 55,323 77,475 Salaries Payable 4,356 751 3,312 7,211 Unearned Revenue 10,816 - - 10,816 Due to Other Governments (355) 1,292 10,717 19,727 Net Other Post Employment Benefits 12,893 4,119 5,036 187,321 Compensated Absences - - - 160,866 Net Cash Provided (Used)by Operating Activities $ 367,531 $ 784,116 $ 206,492 $ 1,743,703 128 City of Eden Prairie, Minnesota Agency Funds Agency Funds Agency funds are used to account for assets held by the government as an agent for individuals, private organizations,other governments, or other funds. Escrow - This fund is used to account for various deposits (mainly contractor's deposits to guarantee payment of special assessments for water, sewer, streets and other improvements) required by the City. This fund is also used for accumulating donations and other contributions for specific purposes. WAFTA - This fund accounts for the collection and remittance of expenses pertaining to the fire training facility owned by 11 member cities. MCES - This fund accounts for the collection and remittance of sewer availability charges to the Metropolitan Council Environmental Services. 129 City of Eden Prairie, Minnesota Agency Funds Combining Statement of Fiduciary Net Position December 31,2012 Escrow 2012 Fund WAFTA MCES Total ASSETS Cash and Investments $ 1,359,546 $ 110,650 $ 7,095 $ 1,477,291 Total Assets $ 1,359,546 $ 110,650 $ 7,095 $ 1,477,291 LIABILITIES Accounts Payable $ 1,359,541 $ 1,546 $ - $ 1,361,087 Due to Other Governments 5 109,104 7,095 116,204 Total Liabilities $ 1,359,546 $ 110,650 $ 7,095 $ 1,477,291 130 City of Eden Prairie,Minnesota Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended December 31,2012 Balance Balance January 1 December 31 2012 Additions Deductions 2012 Escrow Assets Cash and Investments $ 1,227,692 $ 358,406 $ 226,552 $ 1,359,546 Total Assets $ 1,227,692 $ 358,406 $ 226,552 $ 1,359,546 Liabilities Accounts Payable $ 1,227,692 $ 568,384 $ 436,535 $ 1,359,541 Due to Other Governments - 10 5 5 Total Liabilities $ 1,227,692 $ 568,394 $ 436,540 $ 1,359,546 WAFTA Assets Cash and Investments $ 90,734 $ 22,416 $ 2,500 $ 110,650 Accounts Receivable 144 22,000 22,144 - Total Assets $ 90,878 $ 44,416 $ 24,644 $ 110,650 Liabilities Accounts Payable $ - $ 4,046 $ 2,500 $ 1,546 Due to Other Governments 90,878 22,272 4,046 109,104 Total Liabilities $ 90,878 $ 26,318 $ 6,546 $ 110,650 MCES Assets Cash and Investments $ 53,520 $ 1,317,305 $ 1,363,730 $ 7,095 Total Assets $ 53,520 $ 1,317,305 $ 1,363,730 $ 7,095 Liabilities Due to Other Governments $ 53,520 $ 1,324,400 $ 1,370,825 $ 7,095 Total Liabilities $ 53,520 $ 1,324,400 $ 1,370,825 $ 7,095 Totals-All Agency Funds Assets Cash and Investments $ 1,371,946 $ 1,698,127 $ 1,592,782 $ 1,477,291 Accounts Receivable 144 22,000 22,144 - Total Assets $ 1,372,090 $ 1,720,127 $ 1,614,926 $ 1,477,291 Liabilities Accounts Payable $ 1,227,692 $ 572,430 $ 439,035 $ 1,361,087 Due to Other Governments _ 144,398 1,346,682 1,374,876 116,204 Total Liabilities $ 1,372,090 $ 1,919,112 $ 1,813,911 $ 1,477,291 131 Statistical City of Eden Prairie, Minnesota Statistical Section (Unaudited) This part of the City of Eden Prairie's comprehensive annual financial report presents detailed information as a context for understanding this year's financial statements, note disclosures, and supplementary information. This information has not been audited by the independent auditor. Contents Page Financial Trends 134-139 These tables contain trend information that may assist the reader in assessing the City's current financial performance by placing it in historical perspective. Revenue Capacity 140-143 These tables contain information that may assist the reader in assessing the viability of the City's most significant"own-source" revenue, the property tax. Debt Capacity 144-147 These tables present information that may assist the reader in analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 148-156 These tables offer economic and demographic indicators that are commonly used for financial analysis and that can increase one's understanding of the City's present and ongoing financial status. Operating Information 157-158 These tables contain service and infrastructure indicators that can increase one's understanding of how the information in the City's financial statements relates to the services the City provides and the activities it performs. Source: Unless otherwise noted,the information in these tables is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement No. 34 in calendar year 2003; schedules presenting government-wide information include information beginning in that year. 133 City of Eden Prairie, Minnesota Government-wide Net Position by Category (accrual basis of accounting) Last Ten Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets $ 106,289,304 $ 128,665,664 $ 135,346,250 $ 133,041,891 $ 155,494,482 $ 162,522,110 $ 165,578,857 $ 169,874,219 $ 178,022,468 $ 182,115,707 Restricted 12,352,637 6,200,846 6,225,359 6,298,693 6,090,520 6,231,872 9,470,494 8,882,954 9,190,791 7,324,699 Unrestricted 45,992,152 45,055,078 50,144,555 64,133,581 53,052,529 56,235,986 49,907,035 50,954,497 48,843,723 55,746,593 Governmental Activities Net Position 164,634,093 179,921,588 191,716,164 203,474,165 214,637,531 224,989,968 224,956,386 229,711,670 236,056,982 245,186,999 BUSINESS-TYPE ACTIVITIES Net Investment in Capital Assets 156,101,861 143,594,356 141,987,088 140,872,743 142,849,627 143,504,412 142,093,191 138,307,152 138,397,769 134,140,863 Unrestricted 3,488,927 9,935,174 11,466,456 10,575,056 9,249,768 7,050,651 6,301,188 5,224,848 9,452,826 12,357,974 Business-Type Activities Net Position 159,590,788 153,529,530 153,453,544 151,447,799 152,099,395 150,555,063 148,394,379 143,532,000 147,850,595 146,498,837 PRIMARY GOVERNMENT Net Investment in Capital Assets 262,391,165 272,260,020 277,333,338 273,914,634 298,344,109 306,026,522 307,672,048 308,181,371 316,420,237 316,256,570 Restricted 12,352,637 6,200,846 6,225,359 6,298,693 6,090,520 6,231,872 9,470,494 8,882,954 9,190,791 7,324,699 Unrestricted 49,481,079 54,990,252 61,611,011 74,708,637 62,302,297 63,286,637 56,208,223 56,179,345 58,296,549 68,104,567 Primary Government Net Position $ 324,224,881 $ 333,451,118 $ 345,169,708 $ 354,921,964 $ 366,736,926 $ 375,545,031 $ 373,350,765 $ 373,243,670 $ 383,907,577 $ 391,685,836 134 City of Eden Prairie, Minnesota Changes in Net Position-Total (accrual basis of accounting) Last Ten Years Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EXPENSES Governmental Activities $ 32,123,423 $ 34,315,872 $ 38,130,927 $ 38,902,477 $ 41,926,473 $ 45,881,058 $ 47,397,022 $ 45,701,477 $ 45,294,566 $ 49,206,494 Business-type Activities 19,853,224 20,881,410 22,121,630 22,634,036 24,768,351 25,265,911 25,599,664 26,739,072 27,530,501 29,553,823 Total Expenses 51,976,647 55,197,282 60,252,557 61,536,513 66,694,824 71,146,969 72,996,686 72,440,549 72,825,067 78,760,317 PROGRAM REVENUES Governmental Activities 17,974,170 14,928,446 18,214,641 14,693,423 15,020,071 16,270,317 12,361,210 13,032,144 14,786,027 20,610,978 Business-type Activities 17,674,920 21,388,751 22,408,032 21,513,949 25,894,561 23,669,165 24,115,894 23,654,183 25,863,662 29,336,671 Total Program Revenues 35,649,090 36,317,197 40,622,673 36,207,372 40,914,632 39,939,482 36,477,104 36,686,327 40,649,689 49,947,649 Net(Expense)Revenue (16,327,557) (18,880,085) (19,629,884) (25,329,141) (25,780,192) (31,207,487) (36,519,582) (35,754,222) (32,175,378) (28,812,668) GENERAL REVENUES AND TRANSFERS Governmental Activities 26,518,533 29,916,113 30,718,677 35,967,055 38,069,768 39,963,178 35,002,230 37,424,617 36,853,851 37,725,533 Business-type Activities (677,069) (1,965,194) (620,361) (405,749) (474,614) 52,414 (676,914) (1,777,490) (1,230,687) (1,134,606) Total General Revenues and Transfers 25,841,464 27,950,919 30,098,316 35,561,306 37,595,154 40,015,592 34,325,316 35,647,127 35,623,164 36,590,927 Change in Net Position $ 9,513,907 $ 9,070,834 $ 10,468,432 $ 10,232,165 $ 11,814,962 $ 8,808,105 $ (2,194,266)$ (107,095)$ 3,447,786 $ 7,778,259 135 City of Eden Prairie, Minnesota Changes in Net Position-Governmental Activities (accrual basis of accounting) Last Ten Years SOURCES 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EXPENSES General Government $ 9,577,100 $ 10,620,023 $ 13,375,941 $ 14,280,765 $ 14,424,872 $ 15,308,258 $ 9,506,104 $ 9,183,334 $ 9,263,991 $ - Administration - - - - - - - - - 4,008,338 Community Development - - - - - - - - - 6,251,288 Public Safety 8,244,041 10,910,006 12,102,614 11,713,095 13,883,325 15,808,506 19,346,668 17,985,648 17,538,536 - Police - - - - - - - - - 12,413,470 Fire - - - - - - - - - 5,646,926 Public Works 8,456,449 6,473,043 6,810,846 7,313,935 5,960,154 7,048,819 8,128,507 7,522,749 7,665,875 8,226,283 Parks and Recreation 4,338,435 5,480,061 4,949,620 4,396,128 6,087,328 6,212,450 8,606,431 9,769,235 9,617,076 10,815,390 Interest on Long Term Debt 1,507,398 832,739 891,906 1,198,554 1,570,794 1,503,025 1,809,312 1,240,511 1,209,088 _ 1,844,799 Total Expenses 32,123,423 34,315,872 38,130,927 38,902,477 41,926,473 45,881,058 47,397,022 45,701,477 45,294,566 49,206,494 PROGRAM REVENUES Charges for Services General Government 4,818,031 1,988,779 3,004,416 2,859,961 2,573,708 2,506,269 948,287 958,005 966,931 - Administration - - - - - - - - - 1,695,035 Community Development - - - - - - - - - 154,858 Public Safety 1,103,653 3,483,050 3,410,157 3,425,626 3,349,520 3,005,158 2,351,256 3,135,082 3,264,191 - Police - - - - - - - - - 1,338,079 Fire - - - - - - - - - 3,450,431 Public Works 4,457,178 389,225 567,233 403,363 390,731 443,640 210,606 230,390 322,561 518,365 Parks and Recreation 3,257,256 2,984,694 2,897,852 2,687,876 3,050,852 3,470,985 3,774,815 4,285,057 4,327,323 4,759,919 Interest on Long Term Debt 50,301 - - - - - - - - - Operating Grants and Contributions 925,446 1,173,487 1,220,854 1,443,708 1,558,981 2,002,207 1,735,599 1,320,014 1,435,321 1,567,265 Capital Grants and Contributions 3,362,305 4,909,211 7,114,129 3,872,889 4,096,279 4,842,058 3,340,647 3,103,596 4,469,700 7,127,026 Total Program Revenues 17,974,170 14,928,446 18,214,641 14,693,423 15,020,071 16,270,317 12,361,210 13,032,144 14,786,027 20,610,978 Net(Expense)Revenue (14,149,253) (19,387,426) (19,916,286) (24,209,054) (26,906,402) (29,610,741) (35,035,812) (32,669,333) (30,508,539) (28,595,516) GENERAL REVENUES AND TRANSFERS Taxes Property Taxes 24,714,298 25,156,515 26,280,177 28,545,219 31,222,834 31,907,308 31,687,277 31,527,570 31,310,140 32,144,443 Tax Increment - 1,702,742 2,289,648 2,407,638 2,689,433 3,034,260 3,250,611 3,450,291 3,139,080 3,353,556 Gain(Loss)on Sale of Capital Assets - - - 1,431,440 - 2,883,897 (1,505,613) - 121,916 33,848 Grants and Contributions Not Restricted to Specific Programs 384,565 343,241 298,506 190,446 225,295 195,478 206,907 229,510 752,907 836,646 Investment Income 660,984 619,463 1,046,852 2,574,984 3,049,185 1,751,418 672,822 427,377 259,808 186,676 Transfers 758,686 2,094,152 803,494 817,328 883,021 190,817 690,226 1,789,869 1,270,000 1,170,364 Total General Revenues and Transfers 26,518,533 29,916,113 30,718,677 35,967,055 38,069,768 39,963,178 35,002,230 37,424,617 36,853,851 37,725,533 Change in Net Position $ 12,369,280 $ 10,528,687 $ 10,802,391 $ 11,758,001 $ 11,163,366 $ 10,352,437 $ (33,582)$ 4,755,284 $ 6,345,312 $ 9,130,017 136 City of Eden Prairie, Minnesota Changes in Net Position-Business-type Activities (accrual basis of accounting) Last Ten Years SOURCE 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EXPENSES Water/Sewer $ 12,174,191 $ 12,835,671 $ 11,838,114 $ 12,137,487 $ 13,161,533 $ 13,418,071 $ 13,462,844 $ 14,035,916 $ - $ - Water - - - - - - - - 8,162,292 9,570,579 Sewer - - - - - - - - 6,671,324 6,685,442 Storm - - 1,329,224 1,256,092 1,986,557 1,725,629 1,523,876 1,983,337 1,915,249 2,051,178 Liquor 7,679,033 8,045,739 8,954,292 9,240,457 9,620,261 10,122,211 10,612,944 10,719,819 10,781,636 11,246,624 Total Expenses 19,853,224 20,881,410 22,121,630 22,634,036 24,768,351 25,265,911 25,599,664 26,739,072 27,530,501 29,553,823 PROGRAM REVENUES Charges for Services Water/Sewer 8,088,439 11,514,737 9,734,838 10,415,372 11,553,501 11,551,147 11,487,634 11,103,035 - - Water - - - - - - - - 7,743,061 9,920,853 Sewer - - - - - - - - 4,926,624 5,654,186 Storm - - 600,237 644,131 614,590 818,987 910,568 831,731 1,054,077 1,327,159 Liquor 8,415,914 8,880,874 10,038,462 10,454,446 10,741,799 11,299,031 11,717,692 11,687,919 11,724,900 12,381,069 Operating Grants and Contributions - - - - - - - 31,498 - - Capital Grants and Contributions 1,170,567 993,140 2,034,495 - 2,984,671 - - - 415,000 53,404 Total Program Revenues 17,674,920 21,388,751 22,408,032 21,513,949 25,894,561 23,669,165 24,115,894 23,654,183 25,863,662 29,336,671 Net(Expense)Revenue (2,178,304) 507,341 286,402 (1,120,087) 1,126,210 (1,596,746) (1,483,770) (3,084,889) (1,666,839) (217,152) GENERAL REVENUES AND TRANSFERS Grants and Contributions Not Restricted - - - - - - - - 4,016 - to Specific Programs Investment Income 19,835 128,958 183,133 411,579 408,407 243,231 13,312 12,379 35,297 35,758 Gain on Sale of Capital Assets 16,540 - - - - - - - - - Transfers (713,444) (2,094,152) (803,494) (817,328) (883,021) (190,817) (690,226) (1,789,869) (1,270,000) (1,170,364) Total General Revenues and Transfers (677,069) (1,965,194) (620,361) (405,749) (474,614) 52,414 (676,914) (1,777,490) (1,230,687) (1,134,606) Change in Net Position $ (2,855,373)$ (1,457,853)$ (333,959)$ (1,525,836)$ 651,596 $ (1,544,332)$ (2,160,684)$ (4,862,379)$ (2,897,526)$ (1,351,758) Prior to 2011,Water and Sewer were combined. 137 City of Eden Prairie, Minnesota Fund Balances-Governmental Funds Last Ten Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 GENERAL FUND Reserved $ 3,585,138 $ 3,906,562 $ 4,198,756 $ 1,145,293 $ 253,954 $ 138,507 $ 55,864 $ 66,238 $ - $ - Unreserved 16,281,005 16,526,362 17,133,623 18,042,399 19,392,450 20,292,813 20,535,345 20,877,251 - - Nonspendable - - - - - - - - 18,266 52,190 Unassigned - - - - - - - - 21,162,123 21,069,050 Subtotal General Fund 19,866,143 20,432,924 21,332,379 19,187,692 19,646,404 20,431,320 20,591,209 20,943,489 21,180,389 21,121,240 General Fund%Change 4.3% 2.9% 4.4% (10.1%) 2.4% 4.0% 0.8% 1.7% 1.1% (0.3%) ALL OTHER GOVT FUNDS Reserved 11,862,916 6,200,846 4,816,402 6,299,082 6,314,553 159,698 141,011 118,186 - - Unreserved Special Revenue 943,960 312,197 517,164 579,738 587,431 516,296 556,462 548,831 - - Debt Service (56,285) (94,381) (43,896) (223) (1,162) 6,352,188 5,084,425 4,383,750 - - Capital Projects 18,322,735 20,108,258 19,196,836 31,749,345 18,556,887 18,912,365 18,890,716 19,775,005 - - Trust and Agency - - - - - - - - - - Permanent 134,773 136,053 138,518 139,106 139,965 142,094 143,045 140,584 - - Nonspendable - - - - - - - - 812,151 537,530 Restricted - - - - - - - - 15,261,699 22,281,089 Assigned-Capital Project Funds - - - - - - - - 17,951,086 34,326,050 Unassigned - - - - - - - - (3,687,585) (4,308,281) Subtotal All Other Govt'Funds 31,208,099 26,662,973 24,625,024 38,767,048 25,597,674 26,082,641 24,815,659 24,966,356 30,337,351 52,836,388 TOTAL GOVT'FUNDS Reserved 15,448,054 10,107,408 9,015,158 7,444,375 6,568,507 298,205 196,875 184,424 - - Unreserved 35,626,188 36,988,489 36,942,245 50,510,365 38,675,571 46,215,756 45,209,993 45,725,421 - - Nonspendable - - - - - - - - 830,417 589,720 Restricted - - - - - - - - 15,261,699 22,281,089 Assigned-Capital Project Funds - - - - - - - - 17,951,086 34,326,050 Unassigned - - - - - - - - 17,474,538 16,760,769 Total Govt'Funds $ 51,074,242 $ 47,095,897 $ 45,957,403 $ 57,954,740 $ 45,244,078 $ 46,513,961 $ 45,406,868 $ 45,909,845 $ 51,517,740 $ 73,957,628 All Govt'Funds%Change (1.4%) (7.8%) (2.4%) 26.1% (21.9%) 2.8% (2.4%) 1.1% 12.2% 43.6% GASB 54 was implemented in 2011 138 City of Eden Prairie, Minnesota Changes in Fund Balances-Governmental Funds (modified accrual basis of accounting) Last Ten Years SOURCE 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 REVENUES Taxes and Special Assessments $ 27,783,835 $ 28,643,886 $ 30,206,322 $ 33,053,204 $ 35,309,781 $ 36,036,370 $ 36,547,460 $ 36,494,481 $ 35,876,027 $ 37,518,214 Licenses and Permits 3,580,422 3,257,634 3,513,022 3,484,074 3,414,545 3,318,249 2,386,956 3,119,449 3,363,293 5,631,529 Intergovernmental Revenue 2,312,517 3,922,628 1,600,867 4,347,179 3,064,142 4,332,864 4,114,295 2,437,441 5,215,943 7,368,558 Charges for Services 6,203,761 2,179,595 2,744,535 3,011,863 2,881,485 4,106,763 3,506,697 3,919,848 4,202,734 4,394,544 Fines and Forfeits 415,896 439,269 476,520 419,745 433,369 384,509 444,979 496,449 557,512 603,126 Investment Income 769,912 710,752 1,152,288 2,807,250 3,101,558 1,811,199 638,483 406,281 224,379 195,657 Miscellaneous Revenue 4,277,746 4,936,284 3,604,124 2,950,874 4,597,037 2,386,186 1,556,312 1,609,244 1,488,991 2,469,125 Total Revenues 45,344,089 44,090,048 43,297,678 50,074,189 52,801,917 52,376,140 49,195,182 48,483,193 50,928,879 $ 58,180,753 EXPENDITURES General Government 9,683,554 10,431,323 13,297,706 14,420,850 13,579,878 14,236,199 9,152,896 8,726,894 8,768,528 - Administration - - - - - - - - - 3,634,743 Community Development - - - - - - - - - 6,228,446 Public Safety 8,004,610 10,029,529 10,764,727 12,065,308 12,252,120 14,712,895 16,175,725 16,789,050 16,822,991 - Police - - - - - - - - - 12,362,179 Fire - - - - - - - - - 5,190,539 Public Works 3,990,003 4,943,364 4,990,480 5,457,284 5,867,387 5,368,645 5,541,838 5,277,652 5,278,935 5,448,793 Parks and Recreation 4,185,467 5,012,804 4,318,601 4,598,217 4,969,495 6,106,885 8,671,355 8,874,758 8,790,806 9,591,618 Capital Outlay 11,676,808 11,347,805 16,999,203 10,000,224 25,478,947 13,517,922 8,188,289 5,919,859 8,696,679 8,558,743 Miscellaneous 105,960 87,377 120,672 242,555 275,397 210,039 130,251 42,967 17,256 29,641 Debt Service Principal 4,022,560 3,861,549 4,769,810 3,284,606 3,608,823 3,887,918 4,308,577 3,910,749 4,077,751 4,415,603 Interest 1,624,140 911,869 773,379 1,162,050 1,486,112 1,448,514 1,588,937 1,361,443 1,250,401 1,194,117 Other 144,951 26,151 73,162 154,805 38,908 55,872 118,782 44,075 96,169 249,671 Total Expenditures 43,438,053 46,651,771 56,107,740 51,385,899 67,557,067 59,544,889 53,876,650 50,947,447 53,799,516 56,904,093 Excess of Revenues Over (Under)Expenditures 1,906,036 (2,561,723) (12,810,062) (1,311,710) (14,755,150) (7,168,749) (4,681,468) (2,464,254) (2,870,637) 1,276,660 Other Financing Sources(Uses) (1,204,376) 2,776,627 11,671,568 13,309,047 2,960,721 8,438,632 3,574,375 2,967,231 8,478,532 21,163,228 Net Change in Fund Balance $ 701,660 $ 214,904 $ (1,138,494)$ 11,997,337 $ (11,794,429)$ 1,269,883 $ (1,107,093)$ 502,977 $ 5,607,895 $ 22,439,888 Debt Service as a%of Noncapital Expenditures 16.3% 13.1% 13.6% 10.9% 11.6% 11.2% 12.3% 11.1% 11.5% 11.0% Prior to 2012 General Government included Administration and Community Development;Public Safety included Police and Fire. 139 City of Eden Prairie, Minnesota Assessed/Tax Capacity Value and Estimated Market Value of Property Last Ten Years Tax Capacity Tax Tax Capacity Less: Less: Total Total Estimated Annual Payable Personal Commercial Farm& Before Fiscal Tax Assessed Direct Market % Dec.31 Property Residential Apartments &Industrial Other Deductions Disparities Increment Value Tax Rate Value Change 2003 $ 1,026,330 $ 44,591,407 $ 4,590,598 $ 28,284,563 $ 1,245,457 $ 79,738,355 $ 11,193,583 $ 1,070,532 $ 67,474,240 35.192$ 6,496,639,500 11.7% 2004 1,046,857 51,646,689 4,657,705 27,952,129 1,306,580 86,609,960 11,393,809 1,124,059 74,092,092 32.945 7,188,472,300 10.6% 2005 1,159,659 58,891,623 5,435,153 28,630,702 1,284,443 95,401,580 11,355,915 2,181,143 81,864,522 30.601 7,755,652,600 7.9% 2006 1,202,194 65,779,883 5,700,405 30,783,022 1,187,555 104,653,059 11,557,916 2,396,480 90,698,663 28.782 8,593,444,425 10.8% 2007 1,316,149 71,553,209 6,443,883 35,401,780 1,005,179 115,720,200 12,573,128 2,804,557 100,342,515 28.050 9,439,037,100 9.8% 2008 1,282,145 76,169,571 6,657,437 39,973,888 53,761 124,136,802 14,480,546 3,145,493 106,510,763 27.177 9,961,912,400 5.5% 2009 1,262,207 76,242,150 6,418,903 41,524,663 58,691 125,506,614 16,186,185 3,239,713 106,080,716 27.271 10,019,575,800 0.6% 2010 1,250,594 72,344,688 5,912,957 40,911,206 63,679 120,483,124 16,806,832 3,274,193 100,402,099 28.742 9,577,402,500 (4.4%) 2011 1,329,101 67,232,552 5,459,256 37,490,576 59,884 111,571,369 16,432,584 2,863,585 92,275,200 31.239 8,899,287,500 (7.1%) 2012 1,358,537 62,647,985 5,522,804 36,820,370 62,140 106,411,836 15,040,117 2,860,791 88,510,928 33.250 8,647,405,200 (2.8%) Percentages 2003 1.3% 55.9% 5.8% 35.5% 1.6% 16.6% 1.6% 2004 1.2% 59.6% 5.4% 32.3% 1.5% 15.4% 1.5% 2005 1.2% 61.7% 5.7% 30.0% 1.3% 13.9% 2.7% 2006 1.1% 62.9% 5.4% 29.4% 1.1% 12.7% 2.6% 2007 1.1% 61.8% 5.6% 30.6% 0.9% 12.5% 2.8% 2008 1.0% 61.4% 5.4% 32.2% 0.0% 13.6% 3.0% 2009 1.0% 60.7% 5.1% 33.1% 0.0% 15.3% 3.1% 2010 1.0% 60.0% 4.9% 34.0% 0.1% 16.7% 3.3% 2011 1.2% 60.3% 4.9% 33.6% 0.1% 17.8% 3.1 2012 1.3% 58.9% 5.2% 34.6% 0.1% 17.0% 3.2% Source: City Assessing Department and Hennepin County 140 City of Eden Prairie, Minnesota Direct and Overlapping Property Tax Rate Last Ten Years Tax Capacity Rates Direct Rates Overlapping Rates Year School School School Watershed Watershed Watershed Ended City HRA Hennepin Special District District District District District District Dec. 31 Rate Rate County Districts (1) #270 #272 #276 #1 #2 #4 2003 35.192 - 50.607 7.757 20.588 18.957 24.215 1.267 0.418 1.616 2004 32.945 - 47.324 7.488 22.203 16.933 23.125 1.269 0.381 0.732 2005 30.601 - 44.172 7.382 19.176 21.855 21.989 1.165 0.354 1.375 2006 28.561 0.221 41.016 6.998 21.565 23.187 22.952 1.106 0.315 0.787 2007 27.861 0.189 39.110 7.480 19.019 23.727 24.793 1.107 0.291 0.743 2008 26.998 0.179 38.571 7.397 19.218 23.425 17.98 1.149 0.432 1.302 2009 27.092 0.179 40.413 7.154 20.080 24.691 17.186 1.246 0.936 1.246 2010 28.553 0.189 42.640 8.138 23.050 25.959 18.657 1.293 0.520 1.279 2011 31.034 0.205 45.840 9.172 26.456 28.420 21.274 1.317 0.264 1.352 2012 33.036 0.214 48.231 9.523 29.270 29.292 23.015 1.388 0.445 1.387 Market Value Rates Overlapping Rates Year City School School School Ended Direct District District District Dec. 31 Rate #270 #272 #276 2003 0.0177 0.177 0.157 0.100 2004 0.0158 0.158 0.144 0.080 2005 0.0143 0.143 0.133 0.080 2006 0.0177 0.151 0.173 0.177 2007 0.0183 0.141 0.156 0.165 2008 0.0172 0.138 0.146 0.203 2009 0.0171 0.130 0.145 0.202 2010 0.0173 0.139 0.157 0.202 2011 0.0187 0.148 0.162 0.226 2012 0.0155 0.160 0.158 0.225 (1)Special Districts include Metropolitan Council, Regional Transit Board, Metropolitan Mosquito Control, County Park Museum, & Hennepin Suburban Parks 141 City of Eden Prairie, Minnesota Principal Property Taxpayers For the Year Ended December 31, 2012 and 2003 2012 2003 Percentage Percentage Tax of Total Tax of Total Taxpayer Capacity Tax Capacity Taxpayer Capacity Tax Capacity Liberty Property Limited Partnership $ 2,700,720 3.1% Liberty Property Ltd Partnership $ 2,043,476 3.0% Eden Prairie Mall LLC 2,286,250 2.6% Eden Prairie Mall 1,210,270 1.8% IRET Properties 915,000 1.0% Best Buy Company 941,086 1.4% AGNL Health 629,250 0.7% ADC Telecommunications, Inc. 869,250 1.3% Geneva Office Exchange LLC Etal 619,250 0.7% First Industrial Ltd Partnership 819,856 1.2% United Healthcare Sery Inc 596,650 0.7% 11095 Viking Inc. 602,730 0.9% Lifetouch Inc. 579,502 0.7% Eden PR RPF III Ltd Partnership 562,365 0.8% PRIT Core Realty Holdings LLC 571,501 0.6% Gelco Corporation (GE Capital) 519,710 0.8% Windsor Plaza LLC 567,850 0.6% Starmark NW Realty LLC 476,500 0.7% Gelco Corp. 538,940 0.6% MSP Investors I, LLC 471,890 0.7% Total Principal Taxpayers 10,004,913 11.3% 8,517,133 12.6% All Other Taxpayers 78,506,015 88.7% 58,957,107 87.4% Total $ 88,510,928 100.0% $ 67,474,240 100.0% Source: City of Eden Prairie Assessing Department 142 City of Eden Prairie, Minnesota Property Tax Levies and Collections Last Ten Years Collected Within the Year Current Year Levy Collections Total Collections to Date Ended Taxes % of in Subsequent % of Dec. 31 Levied Amount Levy Years Amount Levy 2003 $ 24,653,827 $ 24,611,527 99.83% $ 42,000 $ 24,653,527 100.00% 2004 25,195,881 25,008,820 99.26% 187,646 25,196,466 100.00% 2005 26,132,057 26,072,924 99.77% 58,503 26,131,427 100.00% 2006 28,468,831 28,242,002 99.20% 227,933 28,469,935 100.00% 2007 30,657,304 30,422,094 99.23% 236,137 30,658,231 100.00% 2008 31,514,657 31,263,472 99.20% 250,519 31,513,991 100.00% 2009 31,773,143 31,278,850 98.44% 263,082 31,541,932 99.27% 2010 31,719,631 31,299,275 98.67% 47,764 31,347,039 98.83% 2011 31,719,631 31,355,647 98.85% 51,708 31,407,355 99.02% 2012 32,458,990 32,193,272 99.18% - 32,193,272 99.18% Source: Hennepin County 143 City of Eden Prairie, Minnesota Legal Debt Margin Last Ten Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Estimated Market Value $ 6,496,639,500 $ 7,188,472,300 $ 7,755,652,600 $ 8,593,444,425 $ 9,439,037,100 $ 9,961,912,400 $ 10,019,575,800 $ 9,577,402,500 $ 8,899,287,500 $ 8,647,405,200 Legal Debt Margin: Debt Limit:3%of Market Value(1) $ 129,932,790 $ 143,769,446 $ 155,113,052 $ 171,868,889 $ 188,780,742 $ 298,857,372 $ 300,587,274 $ 287,322,075 $ 266,978,625 $ 259,422,156 General Obligation Bonds 8,321,000 7,141,000 10,852,000 23,407,000 21,881,000 23,369,000 25,300,000 23,070,000 25,690,000 31,570,000 Deductions: Amt Available for Repayment of Bonds 201,522 282,448 350,814 1,145,695 1,585,677 1,825,816 2,288,121 2,317,257 6,917,113 14,795,511 Total Debt Applicable to Limit 8,119,478 6,858,552 10,501,186 22,261,305 20,295,323 21,543,184 23,011,879 20,752,743 18,772,887 16,774,489 Legal Debt Margin $ 121,813,312 $ 136,910,894 $ 144,611,866 $ 149,607,584 $ 168,485,419 $ 277,314,188 $ 277,575,395 $ 266,569,332 248,205,738 242,647,667 As a%of Debt Limit 93.8% 95.2% 93.2% 87.0% 89.2% 92.8% 92.3% 92.8% 93.0% 93.5% 1-In 2008 Debt Limit was changed from 2%to 3% 144 City of Eden Prairie, Minnesota Ratios of Outstanding Debt by Type Last Ten Years Business-Type Governmental Activities Activities Special Year General Lease Assessments Percentage Ended Obligation Revenue Improvement Contract Capital Loans Revenue of Personal Per Dec. 31 Bonds Bonds Bonds for Deed Lease Payable Bonds Total Income ( 1) Capita (2) 2003 $ 8,321,000 $ 10,935,000 $ 6,770,000 $ 300,000 $ - $ 27,138 $ 11,083,516 $ 37,436,654 614 2004 7,141,000 10,085,000 6,200,000 200,000 - 12,589 9,914,891 33,553,480 * 536 2005 10,852,000 9,170,000 8,740,000 100,000 - 6,779 8,209,771 37,078,550 * 579 2006 23,407,000 8,195,000 7,790,000 - 142,773 968 5,648,261 45,184,002 * 706 2007 21,881,000 8,790,000 6,770,000 - 115,918 - 2,879,983 40,436,901 * 620 2008 23,369,000 7,695,000 7,570,000 - 123,076 - - 38,757,076 * 619 2009 25,300,000 4,845,000 6,400,000 - 83,500 - - 36,628,500 * 579 2010 23,070,000 3,795,000 7,000,000 - 42,751 - - 33,907,751 * 541 2011 25,690,000 2,685,000 8,130,000 - - - 4,125,000 40,630,000 * 664 2012 31,570,000 1,425,000 17,670,000 - 174,719 - 3,700,000 54,539,719 * 892 (1)See Demographic and Economic Statistics for personal income (2)See Demographic and Economic Statistics for population * Information is not available 145 City of Eden Prairie, Minnesota Ratios of Total Debt Outstanding by Type Last Ten Years Ratio of Net Year General Less Amounts Bonded Debt Ended Obligation Available in Debt to Estimated Per Dec. 31 Debt (1) Service Fund Total Market Value (2) Capita (3) 2003 $ 8,321,000 $ 201,522 $ 8,119,478 0.12% 133 2004 7,141,000 282,448 6,858,552 0.10% 110 2005 10,852,000 350,814 10,501,186 0.14% 164 2006 23,407,000 (4) 1,145,695 22,261,305 0.26% 343 2007 21,881,000 1,585,677 20,295,323 0.22% 311 2008 23,369,000 1,825,816 21,543,184 0.23% 344 2009 25,300,000 2,288,121 23,011,879 0.23% 363 2010 23,070,000 2,317,257 20,752,743 0.22% 331 2011 25,690,000 6,917,113 18,772,887 0.21% 307 2012 31,570,000 14,795,511 16,774,489 0.19% 274 (1) Amount Does not Include Special Assessment Improvement or Revenue Bonds. (2) See "Taxable Assessed Value and Estimated Actual Value of Property"for Market Value (3) See Demographic and Economic Statistics for Population (4) 2006 Includes $8.4 million in Debt for the Park Referendum 146 City of Eden Prairie, Minnesota Computation of Direct and Overlapping Bonded Debt-G. O. Bonds December 31, 2012 Percent Debt of Debt Net Debt Gross Service Net Applicable Applicable Governmental Unit Debt(1) Funds Debt to City to City Direct Debt: City of Eden Prairie $ 50,665,000 $ 16,836,535 $ 33,828,465 100.00% $ 33,828,465 Overlapping Debt: Hopkins ISD 270 $ 150,345,000 1,731,948 $ 148,613,052 4.11% $ 6,107,996 Eden Prairie ISD 272 101,440,000 27,961,844 73,478,156 109.86% 80,723,102 Minnetonka ISD 276 101,504,548 14,210,598 87,293,950 2.65% 2,313,290 Hennepin County 678,885,000 5,046,499 673,838,501 7.00% 47,168,695 Henn Suburban Park District 90,255,000 17,414,800 72,840,200 9.49% 6,912,535 Henn Regional RR Authority 39,110,000 339,701 38,770,299 7.00% 2,713,921 Metropolitan Council 257,390,000 64,012,289 193,377,711 3.19% 6,168,749 Total Overlapping Debt 1,418,929,548 130,717,679 1,288,211,869 152,108,288 Total Direct and Overlapping Debt $ 1,469,594,548 $ 147,554,214 $ 1,322,040,334 $ 185,936,753 Notes: The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the City's boundaries and dividing it by the county's total taxable assessed value. 147 City of Eden Prairie, Minnesota Demographic and Economic Statistics Last Ten Years Governmental Activities Household Per Median Capita Median School Unemployment Year Population Income Income Age Enrollment Rate 2003 $ 60,931 * * * $ 10,360 3.5% 2004 62,603 * * * 10,360 3.6% 2005 64,032 * * * 9,955 3.5% 2006 64,846 * * * 9,771 4.0% 2007 65,257 * * * 9,806 4.6% 2008 62,210 (1) * * * 9,806 6.9% 2009 63,314 (1) * * * 10,200 7.4% 2010 62,683 (1) 85,509 * 37.2 9,628 7.0% 2011 61,151 (1) * * * 9,301 5.2% 2012 61,151 (1) * * * 9,186 5.5% Sources: City of Eden Prairie Planning Department Minnesota Department of Trade and Economic Development "Community Profile" Minnesota Local Area Unemployment Statistics File Minnesota Workforce Center Eden Prairie School District 272- Enrollment History Website * - Data is not available 1) Using Met Council numbers 148 City of Eden Prairie, Minnesota Principal Employers For the Year Ended December 31, 2011 and 2006 2012 2006 Percentage Percentage of Total of Total Employer Employees City Employment Employer Employees City Employment Optum 1,800 3.6% EP Schools 1,400 2.8% SuperValu Stores Inc. 1,519 3.0% GE Capital 1,200 2.4% EP Schools 1,500 3.0% Rosemount 1,200 2.4% CH Robinson 1,465 2.9% CH Robinson 1,076 2.1% Starkey Labs 1,440 2.9% Super Valu 900 1.8% Cigna 1,200 2.4% Deli Express 842 1.7% Dell-Compellent 1,000 2.0% MTS Systems 791 1.6% Rosemount-Emerson 1,000 2.0% Life Touch 558 1.1% GE Capital 900 1.8% Eaton Corp 500 1.0% Kroll On-Track 808 1.6% Digital River 500 1.0% Total Principal Employer 12,632 25.1% 8,967 16.3% Other Employers 37,779 74.9% 46,033 83.7% Total Employers 50,411 100.0% 55,000 100.0% Source: City Community Development Division Included 2006 Data Which is the First Year that Data was Available. 149 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Funds: Administration City Manager City Manager 1 1 1 1 1 1 1 1 1 Assistant to the City Manager 1 1 1 1 1 Administrative Assistant 1 1 1 1 1 1 1 1 1 Total 3 3 3 3 3 2 2 2 2 City Clerk City Clerk 1 1 1 1 1 1 1 1 1 Total 1 1 1 1 1 1 1 1 1 Communication Services Communications Manager 1 1 1 1 1 1 1 1 1 Sr.Communications Coordinator 1 1 1 1 1 1 Communications Coordinator 1 1 1 1 1 1 1 1 1 Technician II 1 1 1 Total 3 3 3 3 3 3 3 3 3 Finance Finance Manager 1 1 1 1 1 1 1 1 1 Finance Supervisor 1 1 1 1 1 1 1 Senior Accountant 1 1 Accountant 1 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Accounts Payable Technician I 1 1 1 1 1 1 1 1 1 Senior Accounting Clerk 1 1 1 1 1 Payroll Technician III 1 1 1 1 1 1 Technician I 1 1 1 1 1 1 1 1 1 Total 7 7.50 7.50 7.50 7.50 6.50 5.50 5.50 5.50 Source: Human Resource department Less than ten years is presented due to information not available. 150 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Funds: Customer Service Customer Service/Office 4 4 3.80 4.05 4.05 4.05 4.05 3.55 3.00 Total 4.0 4.0 3.8 4.05 4.05 4.05 4.05 3.55 3.00 Human Resources Human Resources Manager 1 1 1 1 1 1 1 1 1 Senior Human Resources Generalist 1 1 1 1 1 1 1 1 1 Human Resources Technician III 1 1 1 1 0.60 0.75 0.75 0.75 0.75 Organization Development Specialist 0.50 0.50 0.60 1 Administration Assistant I 1 1 0.75 0.75 1 1 1 1 1 Payroll Technician III 1 1 1 Total 4 4 4.25 4.25 4.20 4.75 4.75 4.75 4.75 Community Development Assessing City Assessor 1 1 1 1 1 1 1 1 1 Appraiser 5 5 5 5 5 5 5 5 5 Technician I 1 1 1 1 1 1 1 1 1 Total 7 7 7 7 7 7 7 7 7 Planning Planning City Planner 1 1 1 1 1 1 1 1 1 Senior Planner 1 1 1 1 1 1 1 1 1 Planner 1.65 1.65 1.65 1.65 2.15 1.5 1.5 1.5 1.5 Heritage Preservation Specialist 1 1 1 1 0.50 Administrative Assistant I 1 1 1 1 1 1 1 1 1 Total 5.65 5.65 5.65 5.65 5.65 4.5 4.5 4.5 4.5 Community Development Community Development Director 1 1 1 1 1 0.9 0.9 1 1 Administrative Assistant II 1 1 1 1 1 0.5 Total 2 2 2 2 2 0.9 0.9 1 1.5 Economic Development Manager of Economic Development 1 1 1 1 1 1 1 1 1 Total 1 1 1 1 1 1 1 1 1 Source: Human Resource department Less than ten years is presented due to information not available. 151 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Funds: Housing and Community Services Manager of Housing&Community Sry 1 1 1 1 1 1 1 1 1 Community Services Coordinator 1 1 0.5 0.5 0.5 0.5 0.25 Community Services Technician 1 1 1 1 1 0.5 0.5 0.5 0.75 Total 2 2 3 3 2.5 2 2 2 2 Parks and Recreation Park Administration Park and Recreation Director 1 1 1 1 1 1 1 1 1 Administrative Assistant II 1 1 1 1 1 1 1 1 1 Total 2 2 2 2 2 2 2 2 2 Park&Natural Resources Manager of Parks and Natural Resource 1 1 1 1 1 1 1 1 1 Forestry Technician 1 1 1 1 1 1 1 1 1 Supervisor of Park Maintenance 1 1 1 1 1 1 1 1 1 Supervisor Park Construction/Repair 1 1 1 1 1 1 1 1 1 Maintenance Worker Parks 15 16 16 16 16 16 16 16 16 Total 19 20 20 20 20 20 20 20 20 Recreation Programming Manager of Recreation 1 1 1 1 1 1 1 1 1 Recreation Coordinator 4 4 4 4 4 3.5 3.5 3.5 3.25 Outdoor Center/Nature Programmer 1 1 1 1 1 1 1 1 1 Total 6 6 6 6 6 5.5 5.5 5.5 5.25 Community Center Recreation Coordinator 1 2 2 2 2 2 2 2 2 Office Supervisor 1 1 Community Center Manager 1 1 1 1 1 1 1 Customer Service/Office Assistant 3 2 2 2.5 2.5 2.5 2.5 2.5 2.5 Total 5 5 5 5.5 5.5 5.5 5.5 5.5 5.5 Art Center Manager-Art Center 0.5 0.5 0.5 0.5 0.75 Total 0 0 0 0 0.5 0.5 0.5 0.5 0.75 Source: Human Resource department Less than ten years is presented due to information not available. 152 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Funds: Senior Center Manager-Community Center Recreation Coordinator 2 1 1 1 1 1 1 1 1 Administrative Assistant I 1 1 1 1 1 1 1 1 1 3 2 2 2 2 2 2 2 2 Police Police Police Chief 1 1 1 1 1 1 1 1 1 Deputy Police Chief 1 1 1 1 1 1 1 1 1 Lieutentants 3 4 4 3 3 3 3 3 3 Sergeants 12 12 12 12 12 12 12 12 12 Police Officers 47 46 47 48 49 48 48 48 49 Animal Control Officer 2 2 2 2 2 2 2 2 2 Telecommunications Supervisor 1 1 1 1 1 1 1 1 1 Telecommunicators 9.50 9.50 9.50 9.50 10 10 10 10 10.5 Records Supervisor 1 1 1 1 1 1 1 1 1 Records Tech 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6.75 6 Investigative Aide 1 1 1 1 1 1 1 1 1 Administrative Assistant 1 1 1 1 1 1 1 1 1 Customer Service/Office Assistant 1 1 1 1 1 1 1 1 Law Enforcement Analyst 1 1 1 1 1 1 Projects Coordinator 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 Zoning Administrator 0.80 0.80 0.80 1 1 1 1 1 1 88.65 88.65 89.65 90.85 92.35 91.35 91.35 91.35 91.10 Fire Fire Fire Chief 1 1 1 1 1 1 1 1 1 Assistant Fire Chief 0.50 1 1 1 1 2 2 Fire Marshal 1 1 1 1 1 0.8 0.8 Fire Prevention Specialist 3 3 3 3 3 3 3 3 3 Rental Housing Inspector 1 1 1 1 1 1 1 Electronic Communications Specialist 1 1 1 1 1 1 1 1 1 Administrative Assistant II 1 1 1 1 1 1 1 1 1 7 7 8.50 9 9 8.8 8.8 9 9 Source: Human Resource department Less than ten years is presented due to information not available. 153 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental Funds: Inspections Manager of Building Inspections 1 1 1 1 1 1 1 1 1 Building Inspectors II 7 7 7 7 7 6 6 6 6 Technician I 2 2 2 2 2 2 2 2 2 Technician II 1 1 1 1 1 Total 11 11 11 11 11 9 9 9 9 Public Works Engineering Public Works Director 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 City Engineer 1 1 1 1 1 1 1 1 1 Assistant City Engineer 1 1 1 1 1 1 1 1 1 Engineering Technician I 1 1 1 1 1 1 1 1 1 Engineering Technician II 1 1 1 1 1 Senior Project Engineer 1 1 1 1 1 1 1 1 1 Senior Traffic Engineer 1 1 1 1 1 Engineering Project Coordinator 1 1 1 1 1 1 Senior Engineering Tech 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Administrative Assistant II 1 1 1 1 1 Total 12.3 12.3 12.3 12.3 12.3 9.3 8.3 8.3 8.3 Streets&Traffic Manager of Street Maintenance 1 1 1 1 1 1 1 1 1 Maintenance Workers 14 14 14 14 14 13 13 13 13 Administrative Assistant I 1 1 1 1 1 1 1 1 1 Total 16 16 16 16 16 15 15 15 15 Total Governmental Funds Administration 22.00 22.50 22.55 22.80 22.75 21.30 20.30 19.80 19.25 Community Development 17.65 17.65 18.65 18.65 18.15 15.40 15.40 15.50 16.00 Parks&Recreation 35.00 35.00 35.00 35.50 36.00 35.50 35.50 35.50 35.50 Police 88.65 88.65 89.65 90.85 92.35 91.35 91.35 91.35 91.10 Fire 18.00 18.00 19.50 20.00 20.00 17.80 17.80 18.00 18.00 Public Works 28.30 28.30 28.30 28.30 28.30 24.30 23.30 23.30 23.30 Total 209.60 210.10 213.65 216.10 217.55 205.65 203.65 203.45 203.15 Source: Human Resource department Less than ten years is presented due to information not available. 154 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Enterprise Funds: Liquor Liquor Operations Manager 1 1 1 1 1 1 1 1 1 Managers 3 3 3 3 3 3 3 3 3 Assistant Manager 2 2 2 2 2 2 2 2 3 Senior Assistant Manager 1 1 1 1 1 1 1 1 Inventory Control Clerk 1 1 1 1 1 1 1 1 1 8 8 8 8 8 8 8 8 8 Utilities Public Works Director 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Manager of Utilities 1 1 1 1 1 1 1 1 1 Water Treatment Supervisor 1 1 1 1 1 1 1 Water Treatment Lead 1 1 1 1 1 Water Treatment Maintenance Lead 1 1 1 1 1 1 1 Water Treatment Operators 11 11 8 8 8 8 8 9 9 Utility Field Operations Supervisor 2 1 1 1 1 1 1 1 1 Utility Field Operations Lead 1 2 1 1 1 1 1 1 1 Water Treatment Maintenance Technici 2 2 2 2 2 2 2 2 2 Utility Field Operators 8 8 11 11 11 11 11 11 11 Projects Coordinator 1 1 1 Utility Operations Project Manager 1 1 1 1 Storm Utility Maintenance Operator 1 1 1 1 1 1 Administrative Assistant 1 1 1 1 1 1 1 1 1 Technician II 1 1 1 1 1 1 1 1 1 Customer Service/Office Assistant 1 1 1 1 1 1 1 1 1 Environmental Coordinator 1 1 1 1 1 1 1 1 1 Senior Engineering Tech 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 29.7 30.7 31.7 32.7 33.7 32.7 33.7 34.7 34.7 Source: Human Resource department Less than ten years is presented due to information not available. 155 City of Eden Prairie, Minnesota Employees by Function Last Nine Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 Internal Service Funds: Workers Compensation Manager of Support Services 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Total 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Property Insurance Manager of Support Services 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Total 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Fleet Services Public Works Superintendent 1 1 1 1 1 1 1 1 1 Maintenance Worker 6 6 6 6 5 5 5 5 5 Total 7 7 7 7 6 6 6 6 6 Facilities Facilities Manager 1 1 1 1 1 1 1 1 1 Facilities Supervisor 2 2 2 2 2 2 2 2 2 Facilities Engineer 2 2 2 2 3 3 3 3 3 Facilities Technician 2 2 2 2 2 2 2 2 2 Technician I 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Total 7.5 7.5 7.5 7.5 8.5 8.5 8.5 8.5 8.5 Information Technology Information Technology Manager 1 1 1 1 1 1 1 1 1 Technology Analyst/Developer 1 1 1 1 1 1 1 1 1 IT Specialist 1 1 1 1 2 2 2 2 2 GIS Specialist 1 1 1 1 1 IT Technician 2 2 2 2 2 2 2 2 2 Technician I 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 Total 5.5 5.5 5.5 5.5 7.5 7.5 7.5 7.5 7.0 Grand Total 268.30 269.80 274.35 277.80 282.25 269.35 268.35 269.15 268.35 Source: Human Resource department Less than ten years is presented due to information not available. 156 City of Eden Prairie, Minnesota Operating Indicators Last Ten Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Government Bond Rating Aaa Aaa Ma Ma Ma Ma Ma Ma Ma Ma Housing and Human Services Number of Residents Served 2,750 3,000 2,500 2,500 2,500 3,000 3,000 3,100 3,000 3,300 Assessing: Number of Appraisals Completed 6,526 6,000 5,300 5,300 5,300 5,643 5,276 5,517 4,827 5,017 Parks and Recreation Avg Monthly Community Center Memberships n/a n/a n/a n/a n/a 843 1,751 2,100 2,300 2,573 Program Registrations 10,642 12,173 12,751 14,027 15,281 15,844 15,689 16,213 15,010 15,403 Public Safety Fire Number of Calls 886 908 975 888 1,011 1,233 1,247 1,633 1,143 1,169 Inspection Permits Issued 7,253 7,000 7,090 6,590 7,042 6,157 5,225 6,446 6,531 6,043 Police Number of Calls 45,209 52,554 54,622 47,190 52,543 54,483 59,470 52,041 59,544 60,632 Public Works: Patching Materials(Tons) n/a 2,200 2,300 2,500 2,500 1,900 2,500 2,800 2,700 2,000 Overlays (Tons) 17,140 17,640 18,140 26,027 19,900 24,600 31,800 26,300 22,400 23,200 Crack Filling Materials (Lbs) 140,000 140,000 140,000 200,000 200,000 112,000 200,000 200,000 200,000 328,000 Seal Coating(Sq Yards) 520,000 520,000 520,000 402,258 360,535 324,000 427,000 392,000 475,300 389,698 Water System: Number of Connections 17,370 17,717 18,271 18,607 18,745 18,794 18,800 18,948 18,971 19,076 Water Main Repairs n/a n/a n/a 15 153 35 28 41 56 23 Number of Hydrant Flushed 3,899 3,980 3,960 4,062 3,998 4,122 4,234 4,224 4,158 4,267 Average Daily Usage 8.5 MGD 8.0 MGD 8.0 MGD 8.0 MGD 8.0 MGD 8.0 MGD 9.0 MGD 7.7 MGD 8.1 MGD 8.5 MGD Sewer System: Number of Connections 16,950 17,391 17,971 18,307 18,445 18,557 18,600 18,355 18,416 18,474 Miles of Sanitary Sewer Cleaned 85 94 94 60 65 50 75 80 94 85 Storm System: Number of Storm Sumps Maintained 143 188 154 138 63 157 101 93 61 70 Sources:Various City Departments MGD-Million Gallons Daily N/A-Not Available 157 City of Eden Prairie, Minnesota Capital Assets Statistics by Function Last Ten Years 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Public Safety Fire Protection Number of Stations 3 3 3 4 4 4 4 4 4 4 Number of Volunteer Firefighters 75 74 72 79 95 95 95 96 93 89 Police Protection Number of Stations 1 1 1 1 1 1 1 1 1 1 Public Works Miles of City Streets 221 222 224 225 225 232 231 229 230 231 Parks and Recreation City Parks 43 43 43 43 43 43 43 43 43 43 Conservation Areas 15 15 15 5 15 15 15 15 15 15 Historic Sites 5 5 5 5 5 5 5 5 5 5 Special Use Areas 5 5 5 5 5 5 5 5 5 5 Miles of Trails 90 90 90 110 112 112 114 114 120 122 Water System Number of Wells 13 13 14 14 14 14 15 15 15 15 Total Pumping Capacity 22 MGD 22 MGD 22 MGD 22 MGD 22 MGD 22 MGD 22 MGD 24 MGD 24 MGD 26 MGD Total Storage Capacity 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5M gals 8.5M gals Miles of Water Mains 255 259 261 264 265 265 268 269 317 321 Sewer System Miles of Sanitary Sewer 233 236 237 241 242 242 244 244 256 258 Miles of Storm Sewer 154 159 162 166 168 168 171 172 174 179 Sources:Various City Departments Note: No Capital Asset Indicators are Available for the General Government Functions. MGD-Million Gallons Daily N/A- Not available 158 CITY OF EDEN PRAIRIE Hennepin County, Minnesota COMMUNICATIONS LETTER For the Year Ended Decemnbcr 31, 2012 CITY OF EDEN PRAIRIE TABLE OF CONTENTS REPORT ON MATTERS IDENTIFIED AS A RESULT OF THE AUDIT OF THE FINANCIAL STATEMENTS 1 REQUIRED COMMUNICATION 2 FINANCIAL ANALYSIS 5 1 r(DV Expert advice. When you need it.' REPORT ON MATTERS IDENTIFIED AS A RESULT OF THE AUDIT OF THE FINANCIAL STATEMENTS Honorable Mayor of Members of the City Council City of Eden Prairie Eden Prairie, Minnesota In planning and performing our audit of the financial statements of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 2012, in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we considered the City's internal control over financial reporting(internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and,therefore,material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below,we identified certain deficiencies in internal control that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent or detect and correct,misstatements on a timely basis. A material weakness is a deficiency,or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies,in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated May 6,2013, on such statements. This communication is intended solely for the information and use of management,the City Council, others within the City and state oversight agencies and is not intended to be and should not be used by anyone other than these specified parties. 1? t4, Dtw4 4 V f, Ca- KERN,DEWENTER,VIERE, LTD. St. Cloud, Minnesota May 6,2013 CITY OF EDEN PRAIRIE REQUIRED COMMUNICATION December 31,2012 We have audited the financial statements of the City for the year ended December 31,2012, and have issued our report dated May 6,2013. Professional standards require that we provide you with the following information related to our audit. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA, GOVERNMENT AUDITING STANDARDS AND OMB CIRCULAR A-133 As stated in our engagement letter,our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented,in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities, Our responsibility is to plan and perform our audit to obtain reasonable,but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit,we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and.not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment,relevant to your responsibilities in overseeing the financial reporting process. However,we are not required to design procedures specifically to identify such matters. As part of obtaining reasonable assurance about whether the City's financial statements arc free of material misstatement,we performed tests of its compliance with certain provisions of laws,regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with U.S. Office of Management and Budget(OMB) CircularA-133. Also, in accordance with OMB Circular A-133,we examined,on a test basis, evidence about the City's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement applicable to its major federal program for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable basis for our opinion,it does not provide a legal determination on the City's compliance with those requirements. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously communicated to you. 2 CITY OF EDEN PRAIRIE REQUIRED COMMUNICATION December 31,2012 QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement latter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 to the financial statements. We noted no transactions entered into during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most significant estimates affecting the financial statements were: Depreciation—The City is currently depreciating its capital assets over their estimated useful lives, as determined by management,using the straight-line method. Land Held for Resale—Land held for resale is recorded using either the lower of historical cost or estimated resale value. We evaluated the key factors and assumptions used to develop the above estimate in determining it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no difficulties in dealing with management in performing and completing our audit. CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management, Management did not identify and we did not notify them of any uncorrected financial statement misstatements, DISAGREEM)IJNTS WITH MANAGEMENT For purposes of this letter, professional standards define a disagreement with management as a financial accounting,reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit, 3 CITY OF EDEN PRAIRIE REQUIRED COMMUNICATION December 31,2012 MANAGEMENT REPRESENTATIONS We requested certain representations from management which were provided to us in the management representation letter. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases,management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"second opinion"on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements,our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. We are not aware of any consultations by the City's management with other accountants during the course of our audit. OTHER ISSUES We generally discuss a variety of matters,including the application of accounting principles and auditing standards,with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL STATEMENTS We have not reviewed, and it is our understanding, that no other published documents exist that contain audited financial statement information, for which we are currently auditing. As stated in our engagement letter, if you publish or reproduce the financial statements or make reference to our Firm name in relation to such documents,you agree to provide us with a copy of the final reproduced material for our approval before it is distributed, 4 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31.,2012 The following pages provide graphic representation of select data pertaining to the financial position and operations ofthe City for the past five years. Our analysis of each graph is presented to provide a basis for discussion of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. A subsequent discussion of this information should be useful for planning purposes. GENERAL FUND During the year ended December 31,2012, the City experienced an increase in General Fund revenues from$ 37,365,765 in 2011 to$41,061,795 in 2012. Changes in revenues by source are discussed on the following page. The General Fund revenues for 2012 and 2011 are depicted in the following pie charts. Overall, the various sources of revenue as a percentage of total revenue for the General Fund remained consistent from 2011 to 2012. Licenses and permits revenues increased as an overall percentage due to an increase in building activity in the City for 2012. 2Ui2 General Fund Revenues Taxes and A954881110InK 71% --�• li.iCp15C5 and i"c�niss I2°r5 (- ''''...-IrdeteoVanimianliI 3% ahcr }f ehargu for Servke 11% .20 1i General Fund Revenues Thxcg and A5 1ihCrtl9� 74 t Licon0hand Permits g% Intergovernmental 3% 111111:r 11141 3% Charger far Sdrdoes 11% 5 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 GENERAL FUND Trends for each of the City's major revenue classifications over the past five years are graphically portrayed in the chart below;illustrating the majority of revenue for the City is from property taxes, which makes up 71%of all General Fund revenues. In total,the City's General Fund revenues increased $ 3,110,186, or 8.2%, from 2008 to 2012. (!General Fund• Revenue $30,000,000 __._.___-..-_._ $27,500,400 — - 11 -- - $25,000,000 i- - - -• - $22,500,000 - -- $20,000 00 L —-1 $17,500,000 $15,000,000 -- - $12,500,000 — - $10,000,000 •� - — --- $7,500,000 } _ $5,000,000 ---,- . 1- r- 1 1 !•1 � •� _- i ;. Its I 2008 2009 ! Lulu 2011 2012 El_(rakes and Ancements $27901,526 $27,987,435 r $28,056,029 1—$27,763,741 $28,978,973_ pLicenses end Permits 3,318,249 2,3$6,956 I 3,119,449 j 3,363,293 5,127,177 ■intergovermnental 1,138,398 1,096,969 I 1,122,980 ! 1,143,397 1,104,257 CI Charges for Services 4,106,763 3,506,697 4,010,186 t 4,202,734 4,394,544 G'Othcr 1,486,673 - 1,116,097 891,217 I 892,600 1,456,844 -- Taxes and assessments increased$ 1,215,232 from 2011 to 2012. About$ 500,000 of the increase is related to the market value homestead credit. The City was able to add this to the General Fund since there is no longer the risk of not receiving the funds. Licenses and permits increased $ 1,763,884,or 52.4%,resulting from an increase in permits and valuation of commercial remodeling. Other revenues, which includes fines and forfeitures, investment income and miscellaneous other revenue,increased$ 564,244, or 632%,as the City was able to collect on previously owed annual conduit debt charges. Charges for services increased$ 191,810 from $4,202,734 in 2011 to$4,394,544 in 2011 as a result of increased memberships and facility rentals at the Community Center. Intergovernmental revenues remained consistent with the prior year. 6 CITY O1+ EDEN PRA1R1E FINANCIAL ANALYSIS December 31,2012 GENERAL FUND The graph below illustrates comparison of the General Fund budget to actual revenues. Overall, General Fund revenues were$3,670,176,or 9.8%, over budgeted amounts. Every category of revenue was over budgeted amounts in 2012. The most significant variance occurred within licenses and permits,which were$ 2,453,052, or 91.7%, higher than budgeted as a result of conservative budgeting due to recent economic conditions. Other revenues were also significantly over budget due to the collection of previous annual conduit debt fees discussed on the previous page. Charges for services were over budget by$ 316,623 due to the Community Center membership and facility rental revenues exceeding expectations. Intergovernmental revenues exceeded budgeted amounts by$ 115,955, or 11.7%,as a result of the City receiving several federal and state grants that were not anticipated. Taxes and assessments were over budget by$ 202,702,but as these amounts make up approximately 71%of General Fund revenues,this category is less than 1%over budget. 'General Fund Revenues Budget and Actual 535,000,000 -- - $30,000,000 $25,000,000 - - — $20,000,000 . .. -. --. .__ $15,000,000 — — $10,000,000 $5,000,000 - - - - -- S- . _-.- � --_ i I. 1.-. Tuxes and Licenses end Permits] tn#ergovornmental Charges for Services Other A5sessmest5 aBudgat $28,776,271 52,674,125 $985,31Y2 $4,077,921 $875,000 aActua1 28,978.973 5,127,177 1,104,257� 4,394,544 1,456,844 7 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 GENERAL FUND The pie charts below and graph on the following page represent an allocation of expenditures by fuznction. 2012 General Fund Expenditures Community Development Police 5% f32% Administration \{^• 10% Debi Service Less than 1% Fire 4 kti, __14% `'r•� Parks and Public Works Recreation 140 25% 12011 General Fund Expenditures Community Development 6% Police 33% Adtninistration 7'!O r•4 Debt Service Less then 1% Fire Parka and Recreation Public Works 24% 14% 8 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31, 2012 GENERAL FUND General Fund Expenditures I S14,000,000 T-,. --- ---- -- -- S12,000,000 - - - -- F , S10,000,000 --..•._ S8,000,000 l- - $6,000,000 -- -_r I Lill 164,000,000 — $2,000,000 - - - --I 1 1 ' ' [ ' —1 $ 2008 2uu9 1 2ui0 1 All , 20I2 OAdminislratio,, $8,254,444 83,487,940 $3,503,880 53,454,753 $3,634,743 n Ceruns tin,lybevela m 2,034,124 2,020,144 1,983,417__ 2,022,952 2,054,9_86_ El Police ' 10,656,1162 Tf 11,675,808 11,678,049 'Y11,865,S74 —12,287,344 or Fins �- 3.984.831 4,498,782 i 5,134,807 4,914,018 5,190,539 OPu�lio Works i 5,215,A1I 5,311,226 I 5 146,280 5,127,079 5,293,287 f Pprke aid ReCrealiun 6,093,394 8,712,335 1 8,833,061 __ 8,805,548 _ 9,577,04 t is Serviaa-- — _7.•-.125,934 J. W.-- 44,852 44,852 44,853 w - 46,544 Total General Fund expenditures increased$ 1,849,296,or 5.1%, from 2011 to 2012. The police function has the highest expenditures of the General Fund,representing 32%of total expenditures. During 2012,police expenditures increased 3.5%,or$ 420,766, due to an increase in salaries and benefits. Fire expenditures also increased$276,321, or 5.6%,with the City teasing new fire turnout gear. Parks and recreation expenditures increased$ 772,086,or 8.8%,as a result of an increase in Community Center user charges and higher staffing and facilities costs to meet an increased demand for rental. Also, park maintenance increased due to deer management program and capital outlay. Administration expenditures also increased from 2011 to 2012 as a result of additional salaries to cover the 2012 election. Public works expenditures increased mainly due to an increase in budgeted internal service charges as well as general increases in wages and supplies. Debt service and community development expenditures remained consistent with the prior year. 9 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December,31,2012 GENERAL FUND The graph below illustrates the General Fund budget to actual expenditures comparison. Overall, General Fund expenditures were$257,895,or 0.7%,under budgeted amounts. rdeneral Fund Expenditures Budget and Actuall sr4,ona,oaa --- — — — $12,noa,0a4 - $10,000,000 $8,000,000 - —- $6,000,000 - ---- $4,000,000 till $,a00,0a0 i . ._ {;ommuttity I Parka uad Ad�ninixUaRion P�licc Fire Aub11a Wurka Debt _ riCYCl0prg4tiFt I Aoersmiivu ;DBudget $3,852,692 $2,078,654 1 $12,425,743 $5,049,540 $5,491,218 + _$9,405,08I $40,040 1 /4Actual 3,634,743 2,05+1,986 L 12,2 87,340 „5.140,539 I-5,293,287 —i 9,577,634-T,LI4¢,544--. The largest variance can be seen in administration,which was$ 217,949,or 5.6%,under budget. Nearly every area within administration was under budget during 2012,with most of the variance due to budgeting conservatively for wages and election costs. The City also budgets an amount for contingencies that was not completely used. Public works expenditures were$ 197,931,or 3.6°An,under budget as a result of less than anticipated street repairs and maintenance activities. The City also budgeted conservatively for street lighting charges. The City spent less than budgeted on wages due to staf 'turnover, resulting in police expenditures coming in under budget by$ 13 8,403. Parks and recreation expenditures were$ 172,553,or 1.8%,over budget as a result of Community Center activities and rentals exceeding anticipated usage levels. The City did not budget for the turnout gear leased during the year;however, volunteer wages were less than anticipated,resulting in fire expenditures ending the year over budget by a net amount of$ 140,999. 10 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 GENERAL FUND General Fund Operations $45,0oo,0U0 +- - - $40,000,000 ;- --- t" ._..-- $35,000,000 — 530,000,000 I I $25,000,000 — —- — -- $20,000,000 - - — -` $15.000,000 --- $10,000,000 - ' 1! i iii 1 --$5.000,000 -i I. I { 2Ut li 2009 2010 I 2011 21112 IDRerevueo 817,951,609 $36,094,154 $37,201,861 $37,365,765 S41,061,795 0Expendilums 36,361,000 35,831,087 36,324,346 36,235,777 38,085,073 O_[us6 Halence -i 21,149,750 -y---21.026,781 21,426034__ , _.22,017,792�,.._....21,921,477 ... wLlnassigpcdFund 20,292,813 20,535,345 20,877,251 21,162,123 21,069,050 13oianeo • - As illustrated above, the General Fund unassigned fund balance has remained relatively consistent, increasing slightly from$20,292,813 at December 31,2008,to$21,069,050 at December 31,2012. Over the last five years,the City has been able to maintain steady cash and fund balances in a period of generally increasing costs and variable revenues. During 2011,the City implemented Governmental Accounting Standards Board (GASH) Statement No. 54 and in 2012 updated its fund balance policy to strive to maintain a minimum working capital fund balance not less than 50% of next year's budgeted tax revenue, an emergency fund balance for contingencies of 10% of next year's budgeted expenditures and a budget balancing measure of 5%to 7% of next year's budgeted expenditures in unassigned fund balance. As of December 31,2012,the City's unassigned fund balance exceeded these three requirements by$ 70,998,which will be used for encumbrances. 11 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 TAX LEVY,CAPACITY AND RATES The graphs below and on the following page present information relating to the City's taxable market value,tax capacity,net tax levy and tax capacity rates. Over the past ten years,the City's estimated market value has increased 34.5%from $ 6,337,100,230 in 2003 to$ 8,526,126,929 in 2012. There is a two year lag in estimated market values as each year's value is based on property values estimated on January 1 of the prior year,thus,the 2012 estimated market value is based on values on January 1,2011. As shown below, the 2012 estimated value declined for the third year as the declines in property values were starting to be reflected in estimated market value. Future market values are expected to moderate and slowly start to increase. ;Pstimsted Market Value*I s12,oaa,0ao,nnn — - - ----- — i V0,000,000,000 — i ss,000,oao,00a $6,000,000,000 - I $4,000,000,000 — $2,000,000,000 2003 2004 2003 2006 2007 2008 2009 2010 2011 2012 * Values obtained from the League of Minnesota Cities Market Value and Tax Composition City by City for Taxes Payable reports for each respective year, 12 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 TAX LEVY,CAPACITY AND RATES Tax capacity is considered the actual base available for taxation and is calculated by applying the state's property classification system to each property's market value. As illustrated below,the taxable tax capacity of the City has increased$ 21,036,690, or 31.2%, since 2003. The City's net property tax levy (net of Market Value Credit and fiscal disparities adjustment)has increased 23.1%,or$ 5,494,935,in the same time frame. The tax capacity rate has been declining since 2003 as a result of increasing taxable tax capacity. In 2012, the tax capacity rate increased slightly when.compared to 201 1 as taxable tax capacity has decreased for the third consecutive time in the ten years presented. The levy for 2012 presented below includes the General Fund levy of$ 28,647,954 plus a levy for the various bonds and other uses of$ 3,61 1,036. In years prior to 2012, the tax levy is then reduced by a Market Value Credit that is received in the form of a state aid. This aid reduces the amount of property tax revenue,but is reflected as intergovernmental revenue in the City's financial statements. In 2012, Market Value Credits were no longer provided to the City. Delinquent property tax activity also impacts the property tax revenue amount. Tax Capael and Rates $:20,000,000 - — 40.00% ^ — 35.00% 5100,000,000 - 30.0o% sac,o00,o00 . 25.00% S60,000,000 - 20.00% 15.00% $40,000,000 1 0L00"% $20,040.000 5.00% s. — + 1 —a -. —� 0.40°� 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 C`l�Taxub1c Tux Cspac3ty 11Nct Levy t'I'ax Capotity Reta 7 13 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 TAX LEVY,CAPACITY AND RATES The chart below depicts average tax rates for the City, along with the average tax rates for the seven county metro area and all Minnesota cities for 2011 and 2012. Overall,the City has generally maintained a lower average tax rate when compared to the state and metro averages. For City residents, the total tax rate for all taxing entities is 4.12 %and 5.65 %less than metro averages and for all Minnesota cities,respectively. All Cities Seven County City of State-Wide* Metro.Area` Eden Prairies 2011 2012 2011 2012 2011 2012 AVERAGE TAX RATE: City 42.53% 46.26% 40.03% 43.45% 31.03% 33.04% County 43.74% 46.83% 42.13% 45.01% 45.84% 48.23% School 25.23% 27.27% 26.80% 28.49% 28.18% 29.15% Special 'Taxing 6.35% 6.79% 8.04% 8.67% 10.67% 11.08% Total 117.85% 127.15% 117.04% 125.62% 115.72% I21,50% * Amounts obtained from the League of Minnesota Cities Property Tax Data Table reports. 14 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 ENTERPRISE FUNDS In 2011, the City's water and sewer utilities were separated into two distinct rands. As a result, only three years of operating information is available for analysis. Water Fund Water Fund operating revenues increased$ 1,061,175,or 14.0%,in 2012,due to an increase in rates to allow the City to better cover the costs of operations and a change in the City's fee structure to comply with new state requirements. In addition, usage also increased due to dry summer conditions during 2012. Operating expenses increased $ 1,609,289,or 20.4%, primarily attributable to increased costs for an asset management and service order system and greater repairs and maintenance expenses in an effort to extend the life of the City's infrastructure and equipment. Given this activity,the Fund experienced an operating loss of$ 854,498, compared to operating losses of$ 306,384 and$ 1,101,426 in 2011 and 2010,respectively. Water Fund s10,ono,00o — .-- - -- — 58,000,UUU ---- - $6 p00 boa ?— — _i___ - — 54,000,000 .. —- —- 52,000,ouo - 1 — - — illEr-— SC2.000A00) 2010 f 2011 1012 a Operating Revenues $6,392,829 —I $7,164,259 S8,625,434 CI Operating Expenaen -- — 7,494,255 I _ 7,870,b43 _ 9,474,932 DOperoting Ins® (3,201,426) (306,384) (854,498) _ 15 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 ENTERPRISE FUNDS Sewer Fund Sewer Fund revenues increased$ 359,254, or 7.6%,from 2011 to 2012 due to an increase in fees implemented to allow the City to cover operating costs. Operating expenses also increased 1.0%due to an increase in salary expenses allocated to the Fund based on actual time spent on sewer-related projects, With revenues increasing at a higher rate than expenses,the City's operating loss decreased from $ 1,863,698 in 2011, to $ 1,567,458 in 2012. In 2012, operating revenues were equivalent to 76%of operating expenditures, compared to 72%in 2011. !,sewer Fund $9,000,000 — - - $7,000,000 = S5,000,040 -- - - — S3,000,000 S 1,000,000 —_ S(3,000,000) -- 2010 2011 2012 ■Q17enfling Revenuer 54,367.273 S4,736,246 S5.095,500 • G,379,774 6,599,944 6,662,958 o rll x nnsea_-,_ .. 1:045perotli g AS [ ) -- �- ^ (1863698) — -_1,567,458).._- I6 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 ENTERPRISE FUNDS Storm Drainage Fund The Storm Drainage Fund once again experienced an operating loss in 2012. In 2012, the City increased its utility rates by approximately 20%in an effort to bring revenues in line with expenses. Expenses increased only 7,1%due to higher costs for repairs and maintenance items on the Funds assets. Overall, the Fund had an operating loss of$ 791,854,which has improved from the prior year by$ 69,318,or 8.1%. Storm Drainage Fund I s2,5oo,000 -- --- - - S2,noo,ono I-1H ---L S I,500OOQ - S1,000,Oou$500,000i —, s(500,(40) — '— ULAN:4000) — — If iill S(1,500,000) 2008 2009 -- 2010 2011 2012 IllOptisting _ $816,523 5910,514 11163,229 51,054,077 11,259,824 DOperating ripen='— 1,725,500 1,523,$76 1,983,021 1,915,249 2,051,178 _wOryeretingLass — (906,977) (613,3362) (1,119,792) (861,172) (791,854) _ 17 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 ENTERPRISE FUNDS Liquor Fund The chart below shows the operations of the City's Liquor Fund for the past five years with the Building Fund removed. Gross profit increased$ 196,051 from 2011 to 2012 due to an improving economy generating more sales. Over the five years shown below, gross profit has increased$302,722, or 10.9%. The Fund also experienced an increase in operating expenses of$ 293,435 over the same period as a result of increased costs and various leasehold improvements to its existing locations. The Fund's operating income remained positive,with$ 1,051,557 in 2012. After factoring in nonoperating revenues and expenses and transfers,net position remained consistent with the prior year at$ 1,203,752. L1quor Fund $3,300,000 — -- - - $9,000,000 52,500,000 -- - - -- — $2,000,000 --- - S1,500,000 -• — - — 1 31,000,000 — — -1.. 3500,000 z i , 1 r :_i _. _ 3_ 2008 2009 2010 2011 2012 f rlrnM1'at $2,784,245 $2,$$8,2$9 _ $2,913,571 32,69.0,.876 $3,36.927 O Operuting13xpanaae 1,741,933 1,841,391 1,860,598 1,930934 2,035,370 aOperaiingIncome I:042,270 1_046.30$— 1,614,973 959,942 1Ai1557 , As depicted below, City liquor operations are consistent with Minnesota cities in the same geographical area. Overall,the City's gross profit percentage was consistent with the metro average for off-sale municipal stores and is within a percent of other cities shown. 2012 2011 City of City of Metro Edon Eden City of City of City of Municipal Prairie Prairie Edina* Richfield* Savage* Average* Stiles $ 12,101,470 $ 11,547,025 $ 13,172,484 $ 11,198,404 $ 4,657,014 $ 6,532,979 Costs of Sales 9,014,543 8,656,149 9,648,160 3,358,937 3,463,507 4,872,989 Gross Profit 3,086,927 2,890,876 3,524,324 2,839,467 1,193,507 1,659,990 Operating Expenses 2,076,103 1,974,589 2,078,946 1,932,217 943,648 1,163,906 Operating Income 1,051,557 959,942 1,445,378 907,250 249.859 496,084 Gross Profit Percentage 25.5% 25.0% 26.8% 25.4% 25.6% 25,4%n * Metro municipal averages obtained from the Office of State Auditor, Off-Sale Operations for 2011, 18 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 GOVERNMENTAL ACTIVITIES The tables below and on the following page illustrate the City's various sources of revenue and expenditures per capita over a three year period in comparison to 2011 data for Minnesota cities ranked by various sizes. Ooventmcntal Funds Revenue Per Capita with State-Wide Averages by Population Class State-Wide City of Eden Pt iric Year December 31,201I 2010 2011 2012** Population 2,500-10,000 10,000-20,000 20,000-100,000 62,683 61,151 61,151 PrvpOrty Taxc, 390 $ 363 $ 406 $ 506 $ 514 $ 528 Tax Increments 41 48 51 55 51 55 Franchise Fees and Other Taxes 27 30 30 12 13 13 Special Assessments 70 55 56 21 21 31 Licenses end Permits 23 2] 31 38 42 79 Intergovernmental ntal Revenues 283 263 152 39 85 120 Charges for Services 95 79 78 63 69 72 Other 65 75 65 40 37 53 Total Revenue 8 994 $ 910 $ H69 5 774 $ 832 $ 95 * State-wide data obtained from the Office of the State Auditor's 2011 Minnesota City Finances Report. ** Population is estimated as of January 1, 2011 from the Met Council population data study;2012 estimate is not available. The City receives little in intergovernmental revenues, including Local Government Aid and, thus,has consistently shown higher tax revenues per capita and lower intergovernmental revenues per capita compared to the state averages. Total governmental revenues increased$ 119 per capita from 2011. The most significant increases were in licenses and permit revenue,where the City received additional permits for several large projects during the year, and intergovernmental revenue,where thy City received a significant amount of state MSA funding to cover the City's portion of costs for the Shady Oak Road North reconstruction project. Property taxes increased$ 14 per capita as a result of an increase in the tax levy. Other sources of revenues increased$ 16 per capita due to the collection of prior year annual fees on conduit debt issuances and the receipt of a new franchise fee,beginning in the fourth quarter of 2012. 19 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31,2012 GOVERNMENTAL ACTIVITIES Governmental Funds Bxpenditutas Per Capita with Siete-Wide Averages by Population Class Still-Wide" City of Eden Prairie Year Decembor31,2011 2010 2011 2012* Population 2r500.-10,000 10,000-20,000 20,000-100,000 62,683 _ 61,151 _ - 61,151 Current: Admioiatraliott $ 126 $ 99 S 82 $ 56 S 56 $ 59 Community Development 45 55 60 83 87 102 Police 165 163 169 187 195 202 Pim 66 62 69 80 80 85 Public Works 120 112 92 84 86 89 Parks and Reerealion 79 96 87 142 144 157 Other 22 22 19 1 - - Total Current $ 623 $ 609 $ 578 $ 633 $ 642 $ 694 Capital Outlay and Construction $ 250 $ 262 S 227 $ 94 $ 142 $ 140 Debt Service: Principal $ 186 $ 148 5 109 $ 62 $ 67 S 72 Interest and Final 60 48 41 - 22 22 _ 24 Total Debt Service $ 246 a $ 196 $ 150 5 84 $ 89 $ 96 — * State-wide data obtained from the Office of the State Auditor's 2011 Minnesota City Finances Report. ** Population is estimated as of January 1,2011 from the Met Council population data study;2012 estimate is not available. The City's current expenditures for 2012 were more than the state-wide average for a city of a comparable population. Overall, governmental expenditures increased approximately$ 3,103,000 from 2011 to 2012. The largest variances were observed in community development and parks and recreation,which increased$ 15 and$ 13 per capita, respectively,in 2012 due to costs incurred for pass- through deed funding and community center,deer management and capital outlay costs. Despite significant projects in 2011 and 2012,capital outlay per capita continues to stand below state-wide averages for all population categories. Debt service costs also remain well below state-wide averages for 2010-2012. 20 CITY OF EDEN PRAIRIE FINANCIAL ANALYSIS December 31, 2012 GOVERNMENTAL N ET POSITION Components of Net Positiot—ii $250,000,000 -- ------ — fi55 74h3431 $36235$08¢1 r 4iirx7{135 71.5o.954Vr - 1 $225,000,000 $200,000,000 - LI-• ,. _. _- _ -.__ . —i $175,000,0001— _t','{882. 45 -74;SVIyA1l ' f $150,000,000 •••- -„I $125,000,000 $100,000,000$75,000,000$50,000,000 -- ---- - -$25,000,000 - 2008 2009 2010 21}11 2012 IEl Nat Investment In Copitel Assets 0 R Striclal ,.. QUitrestriotai The City's governmental net position is comprised of the three categories listed in the above chart, Net investment in capital assets increased in 2012 as the City increased its assets more than it increased its debts. Restricted amounts are to be used on future debt payments. The unrestricted portion of net position is the remaining balance that is not invested in capital assets or restricted for specific purposes, 21 CITY OF EDEN PRAIRIE Hennepin County, Minnesota SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS,AND INDEPENDENT AUDITOR'S REPORTS For the year Ended December 31,2012 CITY OF EDEN PRAIRIE TABLE OF CONTENTS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 1 NOTE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 3 REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES FOR FEDERAL AWARDS REQUIRED BY ❑MB CIRCULAR A-133 5 SCHEDULE OF FINDINGS AND QUESTIONED COSTS IN ACCORDANCE WITH OMB CIRCULAR A-133... s REPORT ON LEGAL COMPLIANCE 9 CITY OF EDEN PRAIRIE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31,2012 Federal CFDA Federal Federal Age yfPass Through Agency/Program Title Number Expenditures U.S. Department of Housing and Urban Development Direct: Community Development Block Grant 14,218 $ 623,256 U.S. Department of Transportation Passed through the Minnesota Department of Public Safety: Safe and Sober 20.600 15,340 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 10,841 U.S. ❑epartment of Homeland Security Passed through the Minnesota Commissioner oFPublic Safety: Homeland Security Grant Program 97.067 47,945 U.S.Department of Justice Direct: Bulletproof Vest Partnership Program 16.607 4,145 Passed through Hennepin County: Recovery Act Edward Byrne Memorial Justice Assistance Grant Program 16-80 4 234 Total Federal Expenditures $ 701,761 The Note to the Schedule of Expenditures of Federal Awards is an integral part of this Schedule. 1 CITY OF EDEN PRAIRIE NOTE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS December 31,2012 NOTE 1 -BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on the modified accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of U.S. Office of Management and Budget(OMB) Circular A-133, Audits of States, Local Governments and Nonprofit Organizations. Therefore, some amounts presented in this Schedule may differ from amounts presented in,or used in, the preparation of the basic financial statements. 2 I(DA Expert advice. When you need it."' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of the governmental activities,the business-type activities,each major fund,and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 2012,and the related Notes to the Financial Statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 6, 2013. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, we do not express an opinion on the effectiveness of City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the city's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. 3 I(DV Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements arc free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion, The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance, Accordingly,this communication is not suitable for any other purpose. /164 \ , KERN, DEWENTER, VlER.E, LTD, St. Cloud, Minnesota May 6, 2013 4 I(DAT Expert advice. When you need it.' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES FOR FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota Report on Compliance for Each Major Federal Program We have audited the City's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2012. The City's major federal programs are identified in the summary of auditor's results section of the Accompanying Schedule of Findings and Questioned Cost. Management's Responsibility Management is responsible for compliance with the requirements of laws,regulations,contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Audiiing standards, issued by the Comptroller General of'the United States; and OMB Circular A-133,Audits of.Mates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide legal determination of the City's compliance. 5 1(_DAT Opinion on Each Major Federal Program In our opinion, the City of Eden Prairie, Minnesota complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31,2012. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance,we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB CircularA-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions,to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. 6 (D_v Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 2012, and have issued our report thereon dated May 6,2013, which contained unqualified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133,Audits of States, Local Governments and Nonprofit Organizations, and is also not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to, the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. I/6,w.. 7)e , V c U- - KERN, DEW ENTER, VIERE, LTD. St. Cloud,Minnesota May 6, 2013 7 CITY OF EDEN PRAIRIE SCHEDULE OF FINDINGS AND QUESTIONED COSTS IN ACCORDANCE WITH OMB CIRCULAR A-I33 December 31,2012 SECTION I—SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? No • Significant deficiency(ies) identified that arc not considered to be material weakness(es)? No Noncompliance material to financial statements noted? No Federal Awards Type of auditor's report issued on compliance for major programs: Unqualified Internal control over major programs: • Material weakness(es) identified? No • Significant deficiency(ies) identified that are not considered to be material weakness(es)? No Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB CircularA-I33? No Identification of Major Programs CFDA No.: 14,218 Name of Federal Program or Cluster: Community Development Block Grant Dollar threshold used to distinguish between type A and type B programs: $ 300,000 Auditee qualified as low risk auditee? Yes SECTION Ii—FINANCIAL STATEMENT FINDINGS None SECTION III— FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None 8 Expert advice. When you need it.' REPORT ON LEGAL COMPLIANCE Honorable Mayor and Members of the City Council City of'Eden Prairie Eden Prairie, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31,2012, and the related Notes to the Financial Statements, and have issued our report thereon dated May 6, 2013. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minnesota Statutes Sec. 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,claims and disbursements, miscellaneous provisions and Tax Increment Financing. Our audit considered all of the listed categories. In connection with out audit, nothing came to our attention that caused us to believe that the City of Eden Prairie, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions, However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures,other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. This report is intended solely for the information and use of those charged with governance and management of the City and the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. De ,g,AA 4, V L _ KERN, DEWENTER, VIERS, LTD. St. Cloud, Minnesota May 6, 2013 9 ITEM NO.: VI.A. UNAPPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, MAY 7, 2013 CITY CENTER 5:00 —6:25 PM, HERITAGE ROOMS 6:30 —7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters PLANNING COMMISSION: Mary Egan, Steven Frank, Ann Higgins, Catherine Lechelt, Jake Lee (Vice Chair), John Kirk, Jon Stoltz (Chair), Travis Wuttke GUESTS: Mark Furhrmann, Metro Transit; Mark Koegler, HKGI; Jim Alexander, Southwest Project Office Workshop-Heritage Room II I. SOUTHWEST LIGHT RAIL TRANSIT UPDATE A. Project Overview and Timeline—Mark Fuhrmann, Metro Transit Furhmann provided an overview of the Southwest LRT project,which will consist of 15 miles of double track running from downtown Minneapolis to Eden Prairie with an expected ridership of 30,000 per week by 2030. He also reviewed the general project timeline that calls for project development in 2013-2014, environmental documentation in 2014, engineering in 2014-2015, funding agreements in 2015, construction from 2015-2017 and passenger operations beginning in 2018. B. Station Area Planning Update -Mark Koegler, HKGI Koegler provided a station area planning update. He said collaborative work on the transition station area actions plans (TSAAP) is underway. The TSAAP process addresses station platform locations,park and ride sites, future development potential, access and circulation planning, infrastructure planning and stormwater management solutions. Koegler presented charrette results for the proposed stations, and explained that the exact locations will depend on the final alignment as well as other factors. Koegler said the public meetings are being held in April and May to obtain feedback on the initial designs. Station area planning will continue this summer, and additional public meetings will be held in July and August. Refined station area planning is expected to be completed by September, and municipal consent will be sought in October. City Council Workshop Minutes May 7, 2013 Page 2 Koegler explained the SWLRT advisory committee process. He said another major component of the project will be location of the operations and maintenance facility (OMF),which will serve as the main location for cleaning, maintenance and storage of the rail cars. He showed examples of Hiawatha and Central Corridor OMFs, and reviewed some of the criteria that will be considered when determining the location of the SWLRT OMF. Koegler said a TSAAP/OMF workshop is scheduled for Monday, May 13, at 5:00 p.m. at City Center. Results for the five Eden Prairie stations will be presented. The public is encouraged to attend this meeting to receive detailed information about the project and provide input. C. Technical Issues Overview—Jim Alexander, Southwest Project Office Alexander reviewed the list of identified technical issues, including several that are specific to Eden Prairie, including: • Eden Prairie Alignment • Nine Mile Creek Crossing • Golden Triangle Station • Shady Oak Road Crossing • City West Station and TH 212/TH 62 Flyover Bridges Alexander provided 11x17 drawings of each of technical issues areas and discussed some of the issues that must be worked through. Economic Development Manager David Lindahl stated that UHG has indicated they would prefer a tunnel rather than a bridge at the UHG station. Public Works Director Robert Ellis pointed out that Shady Oak Road is currently undergoing major reconstruction, and construction of a tunnel at that location would require tearing up the newly constructed road. He said associated costs would have to be absorbed by the City. Lindahl said ShopNBC has also indicated a preference for a tunnel. They are concerned about the amount of noise that would be generated during construction of a bridge, and how that might impact their operations. Planning Commissioner Katie Lechelt asked if there are any vibration issues anticipated. Alexander said that would depend on proximity to businesses. One of the proposed sites under consideration for the OMF is near Shady Oak and TH 212. Lindahl said the City has concerns about this site since it is considered a gateway to the area. Another possible OMF site involves property owned by Liberty Property Trust. Lindahl said they would likely be more amendable to having lots C and D used for an OMF. Mayor Tyra-Lukens said she is concerned because it does not seem as if parking, or lack of parking, is being addressed at the Singletree Station. Aho said he agreed. Jake Lee said there seem to be a lot of stations planned for Eden Prairie, and some of the proposed alignments would add time to trips that riders may not find acceptable. Aho City Council Workshop Minutes May 7, 2013 Page 3 and Butcher Wickstrom also voiced concerns about parking at the station near Brunswick. Aho asked if consideration has been given to terminating the line at Southwest Station. Alexander said they are looking at how that scenario would affect costs, ridership and run times. Community Development Director Janet Jeremiah noted that half of Eden Prairie's population lives west of Mitchell Road, and that should be taken into consideration in relation to where the line terminates. Council Member Butcher Wickstrom asked how the LRT would affect SouthWest Transit's service. Mayor Tyra-Lukens said as a member of the SouthWest Transit Board, she knows they are interested in continuing to operate express bus service to downtown. SouthWest Transit has asked for Met Council's support for construction of a new park and ride facility at 169 and Pioneer Trail; however, that support has not been forthcoming so far. Council Member Aho, also a SouthWest Transit Board member, said it is his understanding that SouthWest Transit would not be allowed to offer express bus service to downtown since it would be in direct competition with the LRT. Tyra-Lukens said SouthWest Transit's concerns have been forwarded to the Met Council. Open Podium - Council Chamber II. OPEN PODIUM A. Dan Kittrell—Aquatic Project Kitrell said he lives on Summit Drive in Eden Prairie. He noted he has e-mailed the City Council and written a newspaper commentary about his position on the proposed aquatic improvements at the Community Center. He questioned why the City needed to go to referendum in 2005, but not now. He also questioned the wisdom of the City building something that would be in direct competition with the private sector. III. ADJOURNMENT ITEM NO.: VI.B. UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL MEETING TUESDAY,MAY 7,2013 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Ron Case, and Kathy Nelson CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Assistant City Attorney Sarah Schwarzhoff, and Council Recorder Jan Curielli I. ROLL CALL/CALL THE MEETING TO ORDER Mayor Tyra-Lukens called the meeting to order at 7:00 PM. All members were present. Tyra-Lukens reviewed the series of tragic events involving the disappearance of Mandy Matula and asked for a moment of silence for Ms Matula. II. PLEDGE OF ALLEGIANCE III. OPEN PODIUM INVITATION IV. PROCLAMATIONS/PRESENTATIONS A. SENIOR AWARENESS MONTH PROCLAMATION Mayor Tyra-Lukens read a proclamation proclaiming May 2013 to be Senior Awareness Month. She presented the proclamation to members of the Senior Advisory Council. A representative of the Senior Advisory Council reviewed the events that are planned during Senior Awareness Month. B. COMMENDATION AWARD—RICHARD LANE III Police Chief Rob Reynolds read and presented the Police Department's Commendation Award to Richard Lane III, a civilian who assisted an officer with a difficult arrest in January of this year. C. UPDATE FROM HENNEPIN COUNTY SHERIFF'S OFFICE Sheriff Rich Stanek gave an overview of the work of the Sheriffs Office and their interaction with the Eden Prairie Police Department. He reviewed the services provided by the Sheriffs Department and distributed copies of their 2012 Annual Report& 2013 Strategic Plan. CITY COUNCIL MINUTES May 7,2013 Page 2 V. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Tyra-Lukens added Items XIV.A.1,A.2, and A.3. Getschow added Item XIV.E.1., noting information relative to the item was on goldenrod paper. MOTION: Nelson moved, seconded by Butcher Wickstrom, to approve the agenda as amended. Motion carried 5-0. VI. MINUTES A. COUNCIL WORKSHOP HELD TUESDAY, APRIL 16, 2013 MOTION: Aho moved, seconded by Case, to approve the minutes of the Council workshop held Tuesday, April 16, 2013, as published. Motion carried 5-0. B. CITY COUNCIL MEETING HELD TUESDAY,APRIL 16, 2013 MOTION: Nelson moved, seconded by Butcher Wickstrom, to approve the minutes of the City Council meeting held Tuesday, April 16, 2013, as published. Motion carried 5-0. VII. REPORTS OF ADVISORY BOARDS & COMMISSIONS VIII. CONSENT CALENDAR A. CLERK'S LICENSE LIST B. ADOPT RESOLUTION NO. 2013-45 DECLARING PROPERTY AS ABANDONED C. AWARD CONTRACT FOR TRAIL OVERLAY AND RECONSTRUCTION FOR VALLEY VIEW RD. AND MITCHELL MARSH CONSERVATION AREA TO BITUMINOUS ROADWAYS INC. D. APPROVE PURCHASE OF REPLACEMENT HEAVY EQUIPMENT AS LISTED IN THE 2013 BUDGET E. APPROVE CONTRACT WITH MIDWEST WEED HARVESTING FOR WEED HARVESTING IN MITCHELL AND RED ROCK LAKES F. APPROVE A CONTRACT WITH KEYS WELL DRILLING,MUNICIPAL WELL DRILLERS, TO DRILL AND INSTALL TWO GROUNDWATER OBSERVATION WELLS G. APPROVE GRANT AGREEMENT WITH THE DEPT. OF NATURAL RESOURCES FOR WATERCRAFT INSPECTIONS CITY COUNCIL MINUTES May 7,2013 Page 3 H. DIRECT STAFF TO NOT WAIVE THE MONETARY LIMITS ON TORT LIABILITY ESTABLISHED BY MINNESOTA STATUTES 466.04 I. MOVE TO APPROVE THE HOUSING SERVICES AGREEMENT WITH WHAHLT MOTION: Case moved, seconded by Butcher Wickstrom, to approve Items A-I of the Consent Calendar. Motion carried 5-0. IX. PUBLIC HEARINGS/MEETINGS A. VACATION OF PART OF THE DRAINAGE AND UTILITY EASEMENT OVER LOT 4,BLOCK 2, GRAND HAVEN AT MARSH COVE (Resolution No. 2013-46) Getschow said official notice of this public hearing was published in the April 18, 2013,Eden Prairie News and sent to 13 property owners. The property owner has requested the vacation of the drainage and utility easement over a part of Lot 4, Block 2, Grand Haven at Marsh Ridge to facilitate the building of a swimming pool and retaining wall. The drainage and utility easements were originally dedicated with the plat of Grand Haven at Marsh Ridge. The property owner has submitted a revised grading plan to accommodate drainage from the adjoining lots. There were no comments from the audience. MOTION: Aho moved, seconded by Nelson, to close the public hearing and to adopt Resolution 2013-46 vacating part of the drainage and utility easement over Lot 4, Block 2, Grand Haven at Marsh Cove, Hennepin County, Minnesota. Motion carried 5-0. X. PAYMENT OF CLAIMS MOTION: Nelson moved, seconded by Case, to approve the payment of claims as submitted. Motion was approved on a roll call vote,with Aho,Butcher Wickstrom, Case,Nelson, and Tyra-Lukens voting "aye." XI. ORDINANCES AND RESOLUTIONS XII. PETITIONS, REQUESTS AND COMMUNICATIONS XIII. APPOINTMENTS XIV. REPORTS A. REPORTS OF COUNCIL MEMBERS 1. Call Out to Public Works Department--Tyra-Lukens CITY COUNCIL MINUTES May 7,2013 Page 4 Tyra-Lukens said she wanted to give a call out to the Public Works Department for their wonderful job of snow removal this winter season. 2. Report on Last Meeting's Closed Session--Tyra-Lukens Tyra-Lukens reported the Council had a closed session at the last meeting to review the performance of City Manager Getschow. She noted all Council Members were present at the meeting along with the City Attorney. Mr. Getschow's performance was judged excellent across all areas of the evaluation. The City Council will deal with an adjustment of salary for the City Manager at the next meeting. 3. Hennepin County's Step-to-It Challenge Program--Tyra-Lukens Tyra-Lukens said at the last meeting she announced that the City will participate in Hennepin County's Step-to-It Challenge during the month of May. The purpose of the program is to increase a participant's level of physical activity to address issues of health and obesity. The program started May 1, and those who wish to participate can sign up on the Step-to-It website. It is a challenge between individual participants and cities that participate in the program. B. REPORT OF CITY MANAGER C. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR D. REPORT OF PARKS AND RECREATION DIRECTOR 1. Approve Professional Services Agreement with RES Specialty Pyrotechnics for 4th of July Fireworks Lotthammer said the Council asked staff to restore some cuts or make enhancements to events in the City. One of the things staff is not able to do is deal with fireworks. Staff asked two fireworks companies for proposals. Staffs analysis showed the group we have used before, RES Specialty Pyrotechnics, would still give a good value. Staff is proposing to increase the fireworks budget from$20,000 to $25,000 to make an even better event. Tonight's request is to enter into an agreement with RES for$25,000 for the 4th of July fireworks. Aho noted in the past we have always received some private donations to help offset the cost of the fireworks display. He asked if we would again accept such donations. Lotthammer replied we always accept additional donations, and we have different levels of sponsorship for the event. We have had some consistent sponsors for the event every year. MOTION: Case moved, seconded by Aho, to approve a$25,000 professional services agreement with RES Specialty Pyrotechnics to CITY COUNCIL MINUTES May 7,2013 Page 5 provide fireworks at the 4th of July Hometown Celebration at Round Lake Park. Motion carried 5-0. 2. Approve Professional Services Agreement with HGA for Community Center Aquatics Design Services Lotthammer said in 2007 when the Community Center was expanded, the one area not addressed was the pool. As we have conducted public meetings and reviewed the feasibility study, it has become apparent that some changes and enhancements must be made to the pool. We performed a feasibility study to determine what we could do and what the costs might be, and we engaged a lot of residents and groups in that effort. The next step in the process would be to take it to an architectural design. We sought proposals from architect firms that specialize in this area and received four proposals back. The proposals ranged from$330,000 to $950,000. Staff is recommending a proposal from Hammel, Green and Abrahamson, Inc. (HGA) in the amount of $607,500. HGA appeared to be the best fit, and they were the company that did the feasibility study. Lotthammer said the contract will be subdivided into three increments, with 40% for master planning and design, 40% for construction details to go out for bid, and 20% construction administration. The fee for the first phase of the project will be $243,000 to develop the master planning and design. Each subsequent phase will require City Council review and authorization. At the end of the first phase,the Council could decide to go forward with subsequent phases or postpone a decision. Nelson agreed we need to get some firm prices for this, but she was concerned we are tied into the plan of adding on the deep water pool and not a plan to upgrade the current pool. She asked if there is any flexibility to find out what it would cost to do some other options. Lotthammer replied we have some potential to do some rough estimates; however, as we went through the feasibility study and looked at good methods to address all of the issues and users involved, the concept of changing the current pool only addressed some of those issues. The goal was to determine what is best for the next 30 years. We can do the Phase 1 work and that will achieve many of the solutions identified in the feasibility study.Nelson said she still believes the groups we serve least at our pool are younger children, seniors and family users. The current pool has some disadvantages,but she would like to have some options to the $16,000,000 estimated cost or at least to have something very clear to take to a referendum. Butcher Wickstrom said one of the things we have been doing over the past few months is collecting views from a variety of pool users. She thought there is a benefit to the current phased approach. She has confidence in HGA as a design and architectural firm, and we need to move forward with the next step. She asked if the 20% for construction administration is standard. Lotthammer replied the actual master planning would be about 5% of the CITY COUNCIL MINUTES May 7,2013 Page 6 initial 40%total, with 35%being the cost of the design piece. At that point the plans aren't ready to go into a contractor's hands so preparing those plans would be the second 40%. The remaining 20%would be for bid administration and construction administration. Aho said this is a very important topic to our community. We have been looking at our needs as a community for quite a number of years. The current facility has not met our needs for the last ten years. The pool is also important to the High School community. He thought we have had a really good process to date, and he thanked everyone who gave their input. We do need good data to make good decisions. The only way to get to a real decision point is to get more data, and that means going to the design phase. We still need more input and opportunities for other people to look at the feasibility plan, so he thought we could open it up again. He saw this as a very transparent process where we open it to the public and solicit input at many points. Even if we take this step tonight, we aren't moving forward to completion. Aho said we need to move forward with this, and he asked how much time we would have to get public input. Lotthammer said public input is part of the master planning study. The next couple of months will still be time to engage people. The Assistant Athletic Director at the High School has been asked to have their staff think about what they need. There are many viewpoints to bring to the table. We know what the site will hold, but there are still critical design decisions to be made. We know there are decisions to be made like dealing with the deep areas of the pool. There will be alternates included in the plans, and some of the alternates will lend themselves to pursuing at a later time There are also alternate material types that might be used. Aho said he did not believe there is an option to do nothing. We have to do something with the pool because of the mechanical issues and code issues. We would have to invest a significant amount of money to keep the current pool running as it is, and it would still not meet our needs. Tyra-Lukens said today the Council would be authorizing just the award of a professional services agreement and not the funding or scope of the project. MOTION: Butcher Wickstrom moved, seconded by Case, to award the Professional Services Agreement for Design and Architectural Services for the Community Center Aquatics Project to Hammel, Green and Abrahamson, Inc. (HGA) and authorize 40% of design scope in the amount of$243,000. Motion carried 5-0. 3. Authorize Contract with Northern Educate for Room & Ice Rental at Eden Prairie Community Center Lotthammer said staff was approached by Northern Educate Sports Academy for potential purchase of non-prime time ice and room rental on a consistent basis at the Eden Prairie Community Center. Northern Educate is aligned with CITY COUNCIL MINUTES May 7,2013 Page 7 charter schools that are chosen by the students enrolled in Northern Educate's program. Northern Educate's program models the school year. Half of their students spend the morning doing ice and fitness training while the other half works in the classroom with on-line courses and tutors. The groups switch in the afternoon. There is low demand for all three sheets of ice during the non- prime time hours, so it would be advantageous to sell them ice time and to have them in our facility during the school day. He said Ms Sevenich and Mr. Ramsey have done a lot of due diligence on this. It is important to note that Northern Educate would not impact any of the other day-time groups that are in the Community Center. They would be located on the far side of the facility from the other groups and will be very self-contained. We have put a cap on the total number of students at 60 until we make sure there is no negative impact. This contract would result in a large sum of additional revenue to the Community Center. Tyra-Lukens asked where the group's funding comes from and if the students will be from Eden Prairie. Lotthammer said students pay a fee to be part of the Academy and a separate fee for the charter school they select. The Academy does not give any type of certification, but they do have people there to help guide students with their education as well as their sports skills. The group was looking for a location in the southwest metro area, so many of the students would be from the immediate geographic area. Northern Educate serves students from K-12, but most would be in the junior high age range.. Nelson asked about the use of the ice sheets during the hours the school would be there. Lotthammer said for most of the school year we have all three ice sheets up, and the Academy would not displace any other groups. Nelson asked if that meant there is not a lot of down side to this. Lotthammer replied there will be some extra costs for cleaning and maintenance, and there will be some additional wear and tear on the facilities. We would require some damage deposits from the group. He noted staff feels very comfortable that this is a financial benefit for the City. Nelson asked if there is a chance we could have more costs than the amount we get in from them. Lotthammer said staff has visited the Eagan facility where the group runs a similar program and talked to the Manager of their arena. In addition, the City Attorney helped write some things into the contract for the parameters of use. There will be a clear understanding of who gets to use what, when and where. We have diagrams and schematics of the facilities that outline what they can use and when. Case asked if staff is comfortable that any Eden Prairie resident who might want additional ice time will not be impacted by the Academy. Lotthammer said we believe so, especially with the flexibility during the day. Case said it sounds like a win/win situation. MOTION: Aho moved, seconded by Case, to authorize staff to enter into a non-prime time ice and room rental contract with Northern Educate Academy for the 2013/2014 school year. Motion carried 5-0. CITY COUNCIL MINUTES May 7,2013 Page 8 E. REPORT OF PUBLIC WORKS DIRECTOR 1. Adopt Resolution 2013-47 Ordering the Repair or Removal of Hazardous Conditions Located at 11157 Bluestem Lane Ellis said this is an order of repair for a private property located on 11157 Bluestem Lane which overlooks Purgatory Creek. Staff has been keeping a close eye on the property for the past year as there is an erosion issue that has existed for quite a while. We believe this is a private matter, but the property owner recently contacted staff to let us know he noticed a major movement of soil in their backyard. The property owner has concerns about his retaining wall, the four-season porch and the home. He showed a photo of the site, noting the slope erosion and instability near the creek. Staff teamed with Wenck Associates to review the safety issues there and to determine how to resolve the situation. Wenck Associates went on site and determined there are safety factors for the retaining wall, the four-season porch and the home because the situation has deteriorated fairly significantly. We have worked with the property owner and he needs assistance to work on this. Aho asked about the property line. Ellis showed the property line on a site drawing. He noted the source of the erosion is ground water underneath their home that is trapped in a layer of soil that sloughs off and slowly erodes back towards the home. Wenck Associates has put together a recommended fix during the last month that involves fully anchoring the soil, installing rip/rap and re-vegetation on the slope. The requested action tonight is a resolution ordering the repair. There is a prescribed State statute that allows us to go onto the property to make the repairs. We would give the property owner 20 days in which to make the repairs or to give the City authorization to go on site to make the repairs. Staff would come back at a future date once the repairs are made to discuss levying an assessment against the property. The property owner will reserve a right to object to the assessment at that time. Case said we have to move on this tonight,but he would like to learn about the impact the erosion has on other properties in the neighborhood as well as the City property. Aho asked if the property owner wants to handle this themselves or if they want the City to manage the whole process. Ellis thought the property owner would feel more comfortable if the City handles it as it is a somewhat involved process that will take some time. Aho said he would like to see some commitment from the property owner that we could levy their property if we do the repairs. Case noted we have the right to do that anyway, and we have done this before in certain situations where we decided it would be appropriate for the City to be involved. We need to also learn what the impact is on the neighbors as there may need to have some kind of a street assessment. CITY COUNCIL MINUTES May 7,2013 Page 9 Aho noted if you look at the map almost all the homes in the neighborhood look to be in a somewhat similar situation, so this may be a bigger issue than just the one property. Nelson asked if we are positive this will fix the problem. Ellis said we feel confident with this fix. Wenck Associates tends to specialize in this type of project and has a lot of experience in this. This recommendation addresses the issue of managing the ground water flow, so he thought this is the best option out there. MOTION: Case moved, seconded by Butcher Wickstrom, to adopt Resolution 2013-47 ordering the repair or removal of hazardous conditions located at 11157 Bluestem Lane. Motion carried 5-0. F. REPORT OF POLICE CHIEF G. REPORT OF FIRE CHIEF H. REPORT OF CITY ATTORNEY XV. OTHER BUSINESS XVI. ADJOURNMENT MOTION: Case moved, seconded by Butcher Wickstrom, to adjourn the meeting. Mayor Tyra-Lukens adjourned the meeting at 8:15 PM. CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.A. Approve settlement agreement relating to a Richard F. Rosow, City Attorney conservation easement at 11003 Bell Oaks Estate Road Requested Action Move to: Approve a settlement agreement with a property owner relating to a conservation easement which covers, in part, a portion of property located at 11003 Bell Oaks Estate Road. Synopsis The settlement agreement requires Mitchell Y. Coopet, the owner of the residence at 11003 Bell Oaks Estate Road, to plant twenty-seven trees on his property. The settlement agreement also requires Mr. Coopet to pay the City $24,900 as a penalty. This settlement agreement is a result of claims by the City that Mr. Coopet improperly cut down trees in an area protected by a conservation easement. Mr. Coopet has responded that some of the trees were cut by a previous owner, who also constructed a patio in the conservation area. The settlement agreement only pertains to claims against Mr. Coopet, and not against any previous owner of the property. Background Information The City is a holder of a conservation easement which partially restricts the cutting or removal of trees at 11003 Bell Oaks Estate Road. The conservation easement does not permit the owner to cut, remove,plant or otherwise alter the natural forest within the conservation easement. On July 10, 2012, the City received a complaint that a large number of trees on the property at 11003 Bell Oaks Estate Road had been cut. Later inspection showed that approximately fifty trees had been cut down. The inspection also showed that a patio had been constructed which encroached on the area covered by the conservation easement. The City did not issue a permit for this construction or the cutting of trees. An attorney for the owner of the property contacted the City after the inspection to discuss resolution. The current owner of the property, Mr. Coopet, had purchased it in April of 2012. Coopet did not construct the patio. Coopet only cut seventeen of the trees on his property. Based on this information, the City Attorney and Coopet's attorney negotiated the attached settlement agreement to resolve the City's claims against Coopet. Attachment Proposed settlement agreement SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release ("Agreement") is entered into by and between the City of Eden Prairie, a Minnesota municipal corporation ("the City"), Mitchell Y. Coopet, an individual, ("Coopet"), and 11003 Bell Oaks Estate, LLC, a limited liability company organized under the laws of the State of Minnesota(the "Company") (collectively, "the Parties"). WHEREAS, the Company owns real property located at 11003 Bell Oaks Estate Road, Eden Prairie, Minnesota and legally described as follows: Lot 1, Block 2, Bell Oaks Estate 4th Addition, County of Hennepin, State of Minnesota (the "Property"); WHEREAS, Coopet is the owner of the Com pany, resides at the Property, and has full use, control, and enjoyment of the Property; WHEREAS, the City is the Holder, as that term is described in Minn. Stat. §84C.01(2)(i) (2012), of a conservation easem ent dated March 7, 1994 and recorded on May 3, 1994 as Document No. 6278639 with the He nnepin County Recorder's o ffice (the "Conservation Easement"); WHEREAS, the Conservation Easem ent grants the City an easem ent over a po rtion of the Property in perpetual duration and, among other terms, the Conservation Easement provides that the area covered by the Conservation Easement "shall be preserved predominantly in its natural condition. No trees, shrubs, or other vegetation shall be planted upon the Easement Area, and no trees, shrubs or o ther vegetation shall be removed from the Easem ent Area without the prior written consent of the City . . . ;" WHEREAS, the City Code f or the City of Eden Prairie (the "City Code") also regulates the cutting and removal of trees and vegetation on property within the City; WHEREAS, the City alleges that an owner of the Property prior to the Corn pany caused to be built certain im provements which encroached on the area covered by the Conservation Easement, specifically a reta ining wall and a patio which extended into the C onservation Easement(the "Encroaching Improvements"); WHEREAS, the City alleges that the owner of the of the Property prior to the Company caused a number of trees to be cut down and rem oved in the area cov ered by the Conservation Easement; WHEREAS, the City further alleges that Coopet or the Company, acting at Coopet's direction, also caused a num ber of trees to be cut down and removed in the area covered by the Conservation Easement; WHEREAS, neither written consent nor a land altera tion permit for the alleged construction of the Encroaching Im provements or the cutting of trees was given by the City to the previous owner of the Property, the Company, or Coopet; 1 WHEREAS, Coopet and the Company deny that they are liable for any alleged acts of the prior owner to construct the Encroaching Im provements or to cut down or rem ove trees in the Conservation Easement; WHEREAS, Coopet and the Company deny that they are liable for any alleged cutting down or removal of trees from the Conservation Easement by Coopet or the Company; WHEREAS,the City, Coopet, and the Company wish to resolve all disputes and claims between them relating to the Encroaching Improvements or the removal of trees from the area covered by the Conservation Easement; NOW, THEREFORE, for good and valuable considerati on, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows: 1. Planting Trees. Coopet and the Company, jointly and severally, hereby agree to plant twenty seven (27)trees on the Property in the area covere d by the Conservation Easem ent from which trees had been cut. Each of these trees must be at least two inches (2") in diameter. Each of these trees m ust be one of the fo llowing types: Red Oak, Burr Oak, honey Locust, Eastern Red cedar, Hybrid Elm,big tooth Aspen, Hackberry, and/or Black Walnut. 2. Replacement of Trees Which Die Within One Year. Each tree planted by Coopet and the Company pursuant to Paragraph 1 m ust be replaced if, for any reason, it dies within one year of the date from which it was planted. Such replacement trees must be promptly replaced in accordance with the term s of Paragraph 1. Co opet and the Com pany are jointly and severally responsible for the replacement planting of any such tree. 3. Removal of Tree Rem nants. Coopet an d the Com pany, jointly and severally, hereby agree to rem ove from the Property all logs, branches, or tree remnants which remain on the Property due to the cutting of trees, except that Coopet and the Company are not obligated to remove logs, branches, or tree remnants whic h cannot be rem oved without the use of heavy equipment which would cause erosion or substantial damage to the Property. 4. Completion of Work. The planting of tr ees set forth in Paragraph 1 and the removal of Tree Rem nants set forth in Paragrap h 3 must be completed no later than Monday, September 2, 2013. 5. Payment to the City. C oopet and\the Company shall pay to the City the am ount of Twenty Four Thousand Nine Hundred and 00 /100 Dollars ($24,900.00) within fourteen(14) days of this agreem ent. The City s hall place these funds in its parks budget. Coopet and the Company are jointly and severally liable for this payment. 6. Encroaching Improvements. The Parties agree that Coopet and the Company may maintain and repair the Encroaching Improvements as the need arises without violating the terms of the Conservation Easement. The Parties further agree that Coopet and the Company m ay not replace, expand, or extend the En croaching Improvements any further into the area covered by 2 the Conservation Easement, whether vertically, hor izontally, or oth erwise, without the City's written consent. 7. Release. In exchange for the foregoing and upon completion of work set forth in Paragraphs 1 and 3, above, and the tender of payment set forth in Paragraph 5, above, the sufficiency of which is hereby acknowledged, the City, for itself and its agents, successors and assigns does hereby absolutely and unconditionally forever release, fully discharge and waive any and all claim s disputes, demands, complaints, causes of actions and suits, of any kind and nature, whether civil or criminal, whether liquidated or unliquidated, absolute or contingent, that now exist, or may hereafter accrue, against Coopet or the Company, and their officers, members, agents, heirs, successors and assigns, for any and all dam ages allegedly sustained by the City arising from any potential, allege d or actual violation of the Scenic E asement as of the date hereof by the prior owner of the Property, Coopet or the Company. 8. Retention of Rights. Except as expressly set forth herein, nothing in this Agreement shall b e construed to be a waiver o f the City's rights to e nforce the Conservatio n Easement, or the City Code. Nothing set fort h herein excuses or abrogates Coopet or the Company's obligation to corn ply with any pr ovision of the City Code, the Conservation Easement, and applicable law now or in the future . The City hereby expressly retains all claims and causes of action it m ay have against any third party, including but not limited to previous owners of the Property. 9. Affirmation of Obligations. Coopet and the Company hereby affirm and agree to be bound by all the terms and conditions of the Conservation Easement, including but not limited to prohibitions from encroaching on or di sturbing the area cov ered by the C onservation Easement, except for the work set forth in Paragraphs 1 and 3, above. Coopet and the Com pany hereby agree that they shall m ake no further changes to or improvements in the area covered by the Conservation Easement without the written consent of the City. 10. No Admission of Liability or W rongdoing. The Parties acknowledge that this Agreement is entered into for the sole pu rpose of resolving the disputes with re spect to the matters set forth in this Agreement. Neither the execution nor the performance of any of the terms of this Agreem ent will constitute or b e construed as an admission by any Party of any liability, or an adm ission of the validity or enforceab ility of any claim s that are being releas ed and discharged by this Agreement. 11. Effective Date. The effective date of this Agreement is , 2013, which shall be the date this Agreement is approved by the City of Eden Prairie City Council. 12. Entire Agreement. This Agreement constitutes the entire Agreement between the Parties. All modifications or amendments to this Agreement must be in writing and signed by all Parties. 13. Construction. The Parties have participated in the negotiation of this A greement. As a result, this Agreement shall not be construed in favor of any party based upon authorship of the document. 3 14. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Min nesota, not withstand ing any principals of the choice-of-law doctrine. 15. No Duress or Coercion. The Parties hereby acknowledge and agree that they have entered into this Agreement of their own free will and were not coerced to do so nor were under any duress at the time of execution of this Agreement. 16. Representation. The Par ties acknowledge that they have each carefully read and fully understand the Agreem ent. Each Party is represented by counsel and has consulted with counsel regarding this Agreement. 17. Counterparts. This A greement may be executed in one or m ore duplicate counterparts, including facsim ile and PDF counter parts, each of whi ch shall be deem ed an original and together shall constitute one of the same instrument. [The remainder of this page intentionally left blank]. 4 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth opposite their respective signatures. Dated: Mitchell Y. Coopet 11003 BELL OAKS ESTATE,LLC Dated: By Its: THE CITY OF EDEN PRAIRIE Dated: By Its Mayor Dated: By Its City Manager 020777/312001/1625627_2 5 CITY COUNCIL AGENDA DATE: May 21 2013 SECTION: Consent Calendar DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.:VIII.B. George Esbensen Award Bid to Fire Safety USA for 2 Parking Fire Department Ramp suppression vehicles and 1 wild land ATV Requested Action Move to: Approve the purchase of two custom built parking ramp suppression vehicle slide in units and one ATV unit in the amount of$83,975. Synopsis Funding is achieved through using a portion of the development fees collected from United Health Group for the Shady Oak Road improvements. These development fees for the project total $437,945.46. United Health Group's new Eden Prairie campus will have two high density multi-story parking ramps which will require specialized response to mitigate loss in the event of a vehicle fire within the ramp. These suppression units are designed for quick attack within parking ramp structures. Attachments Quote F I E AU E T ********* , FIRE SAFETY USA, INC Quote 3253 19TH STREET NW 011101111111 Uir SROCHESTER, MN 55901 Date Quote# � 507-529-8444: PHONE 5/14/2013 93181 507-529-8111: FAX Name/Address EDEN PRAIRIE FIRE DEPARTMENT ATTN:ACCOUNTS PAYABLE 8080 MITCHELL ROAD EDEN PRAIRIE,MN 55344-4485 Customer Phone 952-949-8338 Rep Customer Fax 952-949-8409 RYAN Qty Item Description Cost Total 1 POLARIS RANGE... POLARIS RANGER 6X6,ALUMINUM WHEELS,PLASTIC ROOF, 23,400.00 23,400.00 WINDSHIELD,FRONT WINCH,CET SKEETER FIRE SKID,ALUMA TRAILER 1 SALE SALE-CUSTOM BUILT SKID UNIT WITH CABINET AND FRONT 30,287.50 30,287.50 BUMPER TURRET,FOAM SYSTEM,PER SPECS,UNIT#1 1 SALE SALE-CUSTOM BUILT SKID UNIT WITH CABINET AND FRONT 30,287.50 30,287.50 BUMPER TURRET,FOAM SYSTEM,PER SPECS,UNIT#2 1 SHIPPING SHIPPING&DELIVERY-FREE 0.00 0.00 Total $83,975.00 Phone# Fax# E-mail Web Site 507-529-8444 507-529-8111 RYAN@firesafetyusa.com www.firesafetyUSA.com CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO: VIII.C. Office of City Manager Adopt Financial Policies Sue Kotchevar, Finance Manager Requested Action Move to: Approve the City's financial policies for the 2014/2015 budget. Synopsis It is the City's policy to review and update the financial policies at the beginning of each two year budget cycle. This action formally approves the policies for the 2014/2015 budget. Policies are included for financial management, revenues and expenditures, debt, accounting, auditing, and financial reporting, capital improvement, and fund balance. All the policies remain the same from the previous two year budget except the City now has a ten year Capital Improvement Plan versus a five year plan. Attachment Policies Financial Policies EDEN Organizational Mission PRAI RI E LIVE•WORK•DREAM Eden Prairie city government will foster respect for the past, plan for the future, and deliver high quality public services that contribute to a strong sense of community. Key Results • Healthy, strong, and safe community, • A preserved and beautiful environment, • A mobile community, • Satisfied customers, • Responsive and accessible government, and • Efficient and effective service delivery. Preamble The City of Eden Prairie has an important responsibility to its citizens to manage its resources responsibly and adopting financial policies is an important first step to ensure that resources are managed responsibly. The policies provide the framework for the overall fiscal management of the City and guide the decision-making processes. The policies operate independently of changing circumstances and conditions. The objectives of the policies include: • Providing sound principles to guide the decisions of the City Council and management. • Protecting the City Council's policy-making ability by ensuring that important policy decisions are not controlled by financial problems or emergencies. • Protecting and enhancing the City's credit rating and prevent default on any municipal obligations. All actions of the City should be consistent with these policies. The policies are presented in the following categories: financial management, revenue and expenditure, debt, accounting, auditing, and financial reporting, capital improvement, and fund balance. 1 Financial Policies Financial Management Policies • The City will develop two-year budgets. In the second year of the two year budget process, the previously developed budget for the following year will be fine tuned as necessary. Each year the City will certify only the following year's budget and levy to Hennepin County. • The City will adopt a balanced budget with current revenues equal to or greater than current expenditures. It is not the City's policy to finance ongoing operations with one-time revenues. One-time revenues will be used for one-time expenditures. • The City, through its capital and operating budgets, will provide for the adequate maintenance, replacement and improvement of the City's physical assets in order to protect the City's capital investment and to minimize future maintenance and replacement costs. • The City will maintain a budgetary control system to ensure adherence to the budget and will prepare quarterly reports comparing actual revenues and expenditures to budgeted amounts. • The City will attempt at all times to maintain the Distinguished Budget Presentation Award of the Government Finance Officers Association. • The City will review and update the financial policies at the beginning of each two year budget cycle. • The City will maintain under separate cover polices for the investment of City funds, a purchasing policy, fixed asset policy, and a purchasing card program. Revenue and Expenditure Policies • The City will provide long-term financial stability through sound short and long term financial planning. • The City will estimate its annual revenues and expenditures in a conservative manner so as to reduce exposure to unforeseen circumstances. • The City will project revenues and expenditures for the next five years and will update this projection each budget process. • The City will review fees and charges annually to ensure that reasonable rates are set and at a minimum are adjusted for inflation. • The City will project its annual revenues by an objective and thorough analytical process. • The City, recognizing the potential cash flow problems associated with property tax collections,will budget 98% of the amount levied for tax revenue. 2 Financial Policies Debt Policies • The City will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues. Where the issuance of long-term debt is required, it will pay back the bonds within a period not to exceed the expected useful life of the project. • The City will attempt at all times to adopt plans and undertake actions in a manner that allows maintenance of the highest possible bond rating. • The City will follow a policy of full disclosure in every financial report and bond prospectus. The City will maintain a sound relationship with all bond rating agencies and will keep them informed regarding material changes in financial condition and developing events,which may influence current or future ratings. Accounting, Auditing and Financial Reporting Policies • The City will establish and maintain the highest standard of accounting practices, in conformity with Generally Accepted Accounting Principles (GAAP) and with recommended best practices as promulgated by the Government Finance Officers Association (GFOA). • The City shall prepare Quarterly Financial Reports and a Comprehensive Annual Financial Report (CAFR) for the purposes of providing finances to interested parties and the public at large. • The City will contract with an independent audit firm to perform an annual audit of the financial statement of the City. • The City will attempt at all times to maintain the Certificate of Excellence in Financial Reporting of the Government Finance Officers Association. Capital Improvement Policies • The City will support a scheduled level of maintenance and replacement of its assets. • The City will maintain a ten year Capital Improvement Plan for all projects over $25,000 and will update the plan every two years. • Liquor profits are a dedicated funding source of the Capital Improvement Plan. 3 Financial Policies Fund Balance Policy - General Fund The City Council authorizes the Finance Manager and/or City Manager to assign fund balance that reflects the City's intended use of those funds. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City's policy to use resources in the following order; 1) committed 2) assigned 3) unassigned. These fund balance classifications apply only to Governmental Funds, not Enterprise or Internal Service Funds. Unassigned Fund Balance — Working Capital Policy The City's unassigned fund balance - working capital as of the end of the year should equal 50% of the next year's budgeted tax revenue. Any amount in excess of 50% will be used for budget stabilization. If the balance falls below 50%, a plan will be developed and implemented to replenish the funds.A balance equal to 50% of the next year's budgeted tax revenue is needed to fund the following year's operations until the tax settlement is received at the end of June. Unassigned Fund Balance — Emergency/Maintain Bond Rating In recognition that the amount for working capital only covers operating costs for the first six months of the years, the City wants to maintain additional resources on hand to provide for contingencies. Therefore, at the end of each year, the City will maintain an amount for emergencies and maintenance of the Aaa bond rating of 10% of the next year's budget. The intent is not to use this balance except in extreme emergencies. If for any reason the balance falls below 10%, a plan would be developed and implemented to replenish the fund. Unassigned Fund Balance — Budget Balancing In recognition that the City's budget is volatile, the City wants to maintain a balance to help manage the fluctuations in the budget. Therefore, at the end of each year, the City will maintain an amount for budget balancing. This amount will vary as positive financial results increase the amount, negative financial results, and one-time uses decrease the amount. At all times,the City will implement a balanced budget. Generally, the balance will be maintained at 5%to 7% of the next year's budget. After the end of each calendar year as part of the annual financial reporting, the City Manager will update the City Council on the status of the budget balancing amount. The update will include the current balances and the changes from the previous year. The City 4 Financial Policies Manager will inform the City Council of any one-time uses throughout the year that were not planned for during the budget process. Use of Budget Balancing Amount Some examples of when and how the balance would be used include the following: • When the balance is greater than 5%, the City Manager may recommend that amounts be used for one-time purchases in the next year's operating budget. These will help to level expenditures from year to year. • When workload demand increases significantly, the City Manager may recommend the use of the balance for short term support. For example, temporary staffing to assist with the light rail transit projects. Many times there will an increase in revenue due to this activity but the need for support and the timing of the revenue may differ. • When other one-time operating needs become apparent after the budget is adopted, the City Manager may recommend the use of the balance. • When financial results are negative,the balance would be used. If for any reason the balance falls below 5% and staff believes this will not self correct, a plan would be developed and implemented to replenish the fund. Fund Balance Policy (Unrestricted Net Assets) — Internal Service Funds The City maintains internal service funds as a tool to purchase goods and services centrally and then charge the costs back to the departments that use the service. This provides more accurate information of the cost to provide City Services. The City maintains the following internal service funds: • Health & Benefits • Severance • Workers Compensation • Property Insurance • Facilities • Fleet • Information Technology 5 Financial Policies Internal service funds will maintain unrestricted net assets of 15% to 20% of the annual budget. Funds with a capital component, facilities, fleet, and information technology will also maintain one year of the capital budget. This will provide for adequate cash flow for operations and provide flexibility to meet the City's capital needs. Fund Balance Policy (Unrestricted Net Assets) — Enterprise Funds The City of Eden Prairie maintains enterprise funds for the following activities: Liquor operations, one fund for each liquor store Liquor building, accounts for the Den Road building that the City owns Water enterprise Sewer enterprise Storm Drainage Liquor Generally all liquor store profit from operation is transferred to the capital improvement and maintenance funds. Exceptions may include maintaining profit for planned leasehold improvements. The liquor building fund will maintain unrestricted net assets to provide for capital and other tenant related costs. The amount will be reviewed when City balances are reviewed annually. Utility The City of Eden Prairie had a utility rate study completed in 2010. The study included an analysis of the cost of service, capital improvement planning, utility rate design, and revenue adequacy evaluation and proposed rate adjustments. The study also provided a recommended policy for the amounts to maintain in unrestricted net assets. The City's policy agrees with this recommendation. The unrestricted net asset policy is as follows: • An amount equal to 90 days of operating expense • An amount equal to the following year's debt service principal and interest • A capital reserve of two years capital expense, except for storm drainage which will be one year The expectation is that these reserves will provide for the long term funding needs of the utility operations. 6 CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: IC 12-5812 ITEM NO.: VIII.D. Leslie Stovring Agreement for Phase IV Pond Inventory& Public Works/Environmental Inspection Program with Wenck Associates Requested Action Move to: Approve the Professional Services Agreement for the Phase IV Pond Inventory and Inspection Program with Wenck Associates in the amount of$87,252. Synopsis The proposal from Wenck is to provide an inventory of the stormwater ponding system within watersheds for Lower Riley Creek watershed. The inventory will be used to select projects for completion after 2014. This project is the next step towards completing the city-wide stormwater treatment inventory required in the Schedule of Compliance (SOC) set by the Minnesota Pollution Control Agency. The cost of pond inventory will be paid out of the stormwater utility. Background Information The City has been working on inventorying our stormwater system since 2003. The current inspection program includes visual inspection of stormwater treatment areas (including lakes, ponds, wetlands, ditches, raingardens, drainage swales and creek segments) to identify problems that require repair. However, the SOC requires additional inspections to determine stormwater treatment volume and effectiveness for each stormwater treatment area. The scope of work that will be used to complete the inventory was approved by the MPCA on April 18, 2011. The City has identified approximately 75 stormwater treatment areas within this study area. The services Wenck will provide include items such as the following: • Survey current pond depth and bathymetric contours for each selected water body. • Compare existing conditions with as-built information. • Calculate the removal efficiency(%) for phosphorus and sediment for each pond. • Determine which ponds need sediment removal. • Develop a model to evaluate the watershed runoff entering the creek. • Determine whether opportunities exist to upgrade functionality of the ponds in areas where additional treatment may benefit the creek. The estimated cost for 2012 is $87,252 based on analysis of 75 stormwater treatment areas within the study area. Stormwater treatment areas that receive no public drainage do not need to be included in the inventory. Costs will be paid from the storm water utility fund. Attachments Proposal Professional Services Agreement Wenck Associates,Inc. 1800 Pioneer Creek Ctr. P.O.Box 249 Maple Plain,MN 55359-0249 44AW I (763)479-4200 Fax(763)479-4242 E-mail:wenckmp@wenck.com Engineers - Scientists May 10, 2013 Ms. Leslie A. Stovring Environmental Coordinator City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Re: Proposal for Phase IV Pond Inventory,Maintenance Program Evaluation Dear Ms. Stovring: Thank you for the opportunity to submit this proposal to assist the City of Eden Prairie with the Phase IV Subwatershed Pond Inventory, Maintenance Program Evaluation and Lake Modeling. Our proposal will demonstrate that the Wenck approach is the best choice for the City both now and for future maintenance evaluations. We have assembled a team of engineers and scientists with considerable experience in providing the GIS, inspection, modeling, and reporting services for the City. Our team has considerable experience in providing the GIS, inspection, modeling, and reporting services necessary to build upon the success of the Phase I, Phase II and Phase III projects for the City. Our team is enthusiastic about continuing to serve the City, and we trust you will find Wenck to be well-qualified and responsive to your needs. Our employee-owners pride themselves on providing unmatched service, sound strategic advice, and technical excellence that fosters good decision-making and helps realize on-the-ground improvements. Thanks for the opportunity to work with you again. Sincerely, WENCK ASSOCIATES Joe Bischoff Project Manager/Principal (763)-479-4229 jbischoff@wenck.com ,n 4 ` - •, , ,; 4: ` �'_ PROPOSAL FOR ka _ ` PHASE IV POND INVENTORY, t % - MAINTENANCE _ . I PROGRAM , ._ .:_, „,,,.., .r , 4*--- • . _. . .'44, EVALUATION "� --- Midi w `` _ �'�I Prepared for: _.f11 $go, ;40,r Con•A 'I - . 1� I- I 1� ,�I.1. 1i1 � r ., ab F,It II r t�aieH ,'. t CITY OF EDEN PRAIRIE f 8080 Mitchell Road n ;1 Eden Prairie, Minnesota 55344 I1. ..{ ;: , {' - Prepared by: Fs r' _ Add Wend< ft. w.,;'miners - Scientists . 4= 4'.--- - ; Wenck Associates, Inc. 1800 Pioneer Creek Ctr. P.O. Box 249 _.__ . -; Maple Plain, MN 55359-0249 T `#T; ,�,M,+ �y May 10, 2013 Table of Contents Why Wenck? 1 Project Approach 2 Tasks, Schedule, and Budget 9 Wencl< Engineers•Scientists Why Wenck? Wenck Associates, Inc. is a full-service environmental and civil engineering firm with experience in planning, design, construction, and maintenance of water resource and storm drainage facilities. We have worked with municipal, county, watershed, and private clients to inventory and evaluate their infrastructure and maintenance plans to assure compliance with federal, state, and local regulations as well as to meet engineering and good housekeeping standards. We understand and are experienced with the Minnesota Pollution Control Agency's NPDES stormwater general permit and industrial stormwater standards. Wenck completed the City of Eden Prairie's Local Water Management Plan, the Plan Update, Nondegradation Plan, and Phase I of the Pond Inventory, Maintenance Program Evaluation and brings to the City skills and experience that expand on those previous projects. Presently, we are wrapping up Phase II of the Pond Inventory project(Eden Lake and Neill Lake subwatersheds pond inventory) and Phase III of the Pond Inventory project(Duck Lake and Red Rock Lake subwatersheds pond inventory). The proposed 4th phase of the study will apply approaches similar to those applied in Phase I, II and III. As applicable, Wenck will take the Nondegradation Assessment and Local Water Management planning documents a step further to evaluate whether current conditions satisfy goals outlined in the plans. Throughout this proposal, we intend to demonstrate the following benefits the Wenck team offers the City. • Easy-to-Use Technical Information Wenck engineers and scientists pride themselves on technical excellence. More important, however, Wenck staff is focused on conveying the meaning of this technical information to the client and how it will impact their business or operation. Just recently, Wenck staff presented Staring Lake subwatershed study results to the MPCA meeting in tabular and graphic formats. The MPCA used terms like"impressed" and"great job" during Wenck's presentation. Wenck's presentation of the 122 ponds inventoried was easy to digest, concise yet instructive. • Established Working Relationships The Wenck team is very familiar with surface water resources in the City. We wrote your Nondegradation Assessment and Local Water Management Plan and Plan Update. We have worked with City staff, files, and models in the past. This familiarity will save the City time and money in not having to re-educate us on how you execute projects. • Looking to the Future Wenck intends to build upon the success of the Staring Lake, Duck Lake and Neill Lake subwatersheds by adding to the electronic, GIS-based approach will enable easy transfer and display of information to City staff, residents and policy-makers. 1 -iWendk Engineers-Scientists Project Approach The Wenck team proposes to provide the City of Eden Prairie with the third phase of engineering consultant services expanding the existing inventory and analysis of stormwater facility performance and maintenance needs. As shown in Figure 1, the Phase IV study will include subwatersheds tributary to Riley Creek. Wenck's approach will build upon the Phase I, II and III efforts, and continue use of an all-electronic method of evaluating, collecting and processing the pond inventory and maintenance needs. This method will allow for easy transfer of data to City staff and application to other subwatersheds in the City and add to the Phase I, II and III database. Task 1 — Stormwater System Analysis This task consists of identifying basins where the City is responsible for maintenance and selecting basins for further field evaluation. (Throughout this proposal, we will refer to constructed stormwater ponds and stormwater wetlands collectively as "basins.") Basin identification will be coordinated with City staff to determine which basins are located on City property, within City right-of-way, or under a drainage and utility easement. We expect to locate basins on City property and within City right-of-way using GIS-based parcel information from the City. We will continue collaborating with City staff in determining which basins may be under drainage and utility easements. There appear to be between 75 to 100 basins located in the Phase IV subwatersheds based on Figure 1. We will verify that number using the Local Drainage Plan Update, Local Water Management Plan, and GIS files with 2-foot contour data. Task 1 also includes two important meetings. The first is the kick-off meeting with City staff to further discuss project goals and refine the scope of work as necessary to ensure it satisfies the items noted in the "Schedule of Compliance" issued by the MPCA and MS4 requirements. We suggest inviting MPCA to this meeting to ensure that they buy into the approach and agree to proposed reductions in field data collected. We understand that a second meeting may be necessary to ensure that all relevant data has been collected from the City for Wenck to start the project. After completion of Task 1, the Wenck Project Manager will meet with City staff a third time to determine which basins will be selected to undergo additional analysis in Tasks 2 and 3. Task 1 Deliverable: ■ Spreadsheet or database listing the water bodies identified for inclusion in the project. Task 2— Sedimentation Survey For Task 2, Wenck will visually inspect and perform a bathymetric survey for each basin identified in Task 1. This information will be used to determine if maintenance is required and assess the basin pollutant removal performance (Task 3). 2 -. Wendk Engineers•Scientists Project Approach (cont.) Wenck will review or collect the following by visual inspection: • Review storm sewer, grading, and utility plans available for each basin prior to field evaluation. If possible, these plans will be taken into the field with the inspector to allow for easy comparison between the proposed and constructed facilities. • Photograph basin features. • Identify and report plain-sight maintenance needs (i.e., erosion, accumulation of debris on trash racks, repairs to damaged structures)using the "Stormwater System Follow-Up Checklist"provided in the Request for Proposals. This information will be entered into our hand-held GPS unit such that it can be easily downloaded into the City Water Body Inventory database or a spreadsheet back in the office. • Estimate the percentage of the pond's permanent pool surface regularly covered by aquatic vegetation. • Measure the basin length and width. We will conduct the sedimentation survey using a survey-grade sub-centimeter GPS unit. The survey will include a bathymetric survey of the basin, estimation of accumulated sediment depth, water surface elevation, and basin outlet/overflow data. Cross-sections will be surveyed throughout each basin to determine the bathymetry, and we will estimate the depth of sediment using a metal probing rod. We do not believe that soil borings and subsequent soil analysis are warranted to determine the original bottom of the basin. Similar to work we have done in County Ditches and at Albert Lea Lake (18 feet of accumulated sediment), the probe is advanced into the basin muck until resistance is felt(the original basin bottom). We will record that depth and compare it to the design, if available. After completing Task 2, Wenck will meet with City staff to review the results of Task 2 and the scope of work for Task 3. Task 2 Deliverable: • Expand the spreadsheet or database from Task 1 to include the measured parameters from Task 2. Task 3 — Basin Analysis Task 3 analyzes the data collected from Task 2 to determine the sedimentation level, pollutant removal effectiveness of the basin, and,ultimately, which basins need sediment removal. Wenck will use ArcMap software to import the GPS survey data from the field evaluation to determine the degree of sediment deposition in each basin. The ArcMap software will allow Wenck to calculate the volume of the basin below any elevation. Therefore, we can quickly calculate the basin surface area, permanent pool volume, and live storage volume. From this information, we will then estimate the degree of sedimentation by comparing the volume to the design or as-built plans for each basin. Where design or as-built plans are not available, we will determine the degree of sedimentation using the probing rod results for those cases. 3 ddWenckk Engineers-Scientists Project Approach (cont.) Using the spreadsheet from Task 2, Wenck will calculate the water quality volume draining to the basin and the permanent pool volume within the basin. Flood elevations will be obtained from design plans, or estimated using the top elevation of the basin. Following guidance from the Minnesota Stormwater Manual, map the path of stormwater flow, and calculate the length to width and ratios of permanent and temporary storage area to the drainage area. Wenck will determine the load-based removal efficiency of each basin using a numerical relationship developed from the computer model P8. We will run the P8 model with a"dummy" subwatershed and variety of pond permanent pool volumes to determine the total suspended solids (TSS) and total phosphorus (TP)removal efficiencies. These removal efficiencies will then be compared to those for a basin designed to NURP standards. This will produce a simple relationship with which to compare each basin evaluated in the field. Wenck will prioritize basin maintenance based on the degree of sedimentation found in each pond, its hydrologic proximity to public waters, and the potential water quality benefits of increasing permanent pool volumes. We will discuss with City staff whether the plain-sight maintenance needs identified during the field evaluation should be included in our prioritization. The City may wish to exclude and evaluate these items on a case-by-case basis and incorporate them into ongoing maintenance programs. Wenck and City staff will meet at the completion of Task 3 to discuss the priority rankings and determine which basins will be selected for the NURP Criteria Analysis in Task 4. Task 3 Deliverable: ■ Expand the spreadsheet or database from Task 2 to include the calculated parameters from Task 3. The data will be in a format compatible with the City's GIS system. Task 4 — NURP Criteria Analysis The purpose of Task 4 is to quantify the water quality improvement of dredging or expansion of the priority basins with the goal of satisfying NURP standards. The rankings developed in Task 3 will indicate which basins require dredging or could be expanded. We do not anticipate that all basins included in the field inventory will be selected for analysis in Task 4 because of physical (site restraints) or ownership limitations. NURP standards require that stormwater ponds have a permanent pool volume that is at least equal to the runoff from a 2.5-inch, 24-hour storm event. For the priority basins, Wenck will estimate the amount of dredging or expansion that is practical and re-evaluate the load-based removal efficiency. Task 4 Deliverable: • Expand the spreadsheet or database from Task 3 to include the revised load-based removal efficiency from Task 4. 4 AddWencl< Engineers-Scientists Project Approach (cont.) Task 5— P8 The purpose of Task 5 is to provide the City with an expanded assessment of City pond performance in the Riley Creek watersheds below Riley Lake. Wenck proposes the following additional tasks to provide the City with creating the Phase IV P8. P8 is an industry-standard model developed to assess pollutant loading in urban watersheds. P8 will be used to generate and predict external loads. We will complete the following tasks to accomplish the scope of work: Task 5A.Data Analysis Task A entails the collection and processing of data through GIS for developing watershed inputs for the P8 Model. The same process for developing model inputs will be used for this analysis as was used to create the models for the Nondegradation Plan. Input data includes subwatershed area, the watershed impervious fraction, and the pervious area curve number. Task 5B. P8 Modeling Wenck developed a P8 model for Phase I that was an expansion of the Staring Lake Watershed P8 model for the City of Eden Prairie's Nondegradation Plan. W e will expand on this model to include the Phase II basins identified for field evaluation in Pond Inventory Project. Watershed information will be determined from the land use analysis and basin data will be taken directly from the field evaluation. T he model will be validated using water quality monitoring data where available. Task 5C. Evaluate P8 Model Results P8 will be used to calculate watershed runoff loads for TSS and TP. Inserting basin data obtained from Pond Inventory Project will allow us to calculate the approximate amount of TSS and TP removed by the basins. These values, in turn, will serve as input for the BATHTUB analysis. Task 5D.Draft Technical Memorandum to Summarize Results. Wenck will draft a technical memorandum to describe the modeling methods, results, and conclusions. We will evaluate the results of the Pond Inventory Project and discuss the implication on Riley Creek. Task 6— Report Requirements Upon completion of the analysis, Wenck will complete a final report to summarize the methods and results of the study. The report will detail the methods of the field evaluation and analysis from Tasks 2-5, and highlight critical maintenance activities including individual basin sediment volumes. Plain-sight maintenance activities will be summarized using tables and figures rather than a detailed explanation for each individual basin visited during the field evaluation. We will also discuss easement needs for the City to consider. 5 AdidWencl< Engineers-Scientists Project Approach (cont.) The report will present cost considerations for the recommended maintenance activities. Among these, dredging and disposal of sediment is likely the most costly. Therefore, our planning-level cost estimates will include costs for sediment characterization, mobilization, site preparation, dredging, sediment disposal, minor storm sewer work, site restoration, and erosion control. We will also discuss cost impacts if contamination is identified in any dredged material. The report will also identify whether proposed improvements will require a permit. Local, state and federal permits for construction may be required. Most importantly, though, is that the Minnesota Wetland Conservation Act(WCA) may apply to any proposed work in stormwater wetlands. The report will address what actions by the City do and do not require a WCA permit. Wenck will submit a draft report to City staff for review and approval prior to finalizing the report. We expect one meeting with City staff and one meeting with the Conservation Commission to present the results and recommendations of the study. Task 6 Deliverables: • Final spreadsheet or database from Task 4. • All GIS files. • Project report to include all office, field and modeling analyses conducted by the project team. Task 7— Meetings, Project Management & Project Summaries Task 7 includes attendance at the seven meetings noted in Tasks 1-6 above, mileage, and project coordination time. The task also includes drafting of a project summary to be attached to each invoice. The project summary will detail the amount billed to date, tasks which need to be completed, the estimated cost to complete these tasks, and the projected timeline for completion of the project. Task 7 Deliverables: • Attendance at meetings specified in Tasks 1-6 above. • A project summary report with each monthly invoice. 6 -+daWenckk Engineers-Scientists Tasks, Schedule, and Budget There are six primary tasks to complete the Phase IV project. As we identified in the Project Approach, Wenck has added Task 7 to account for meeting time, project management, and project summaries. We are ready to begin Task 1 as soon as the City issues the notice to proceed. Our proposed schedule (Table 1) is flexible and can be adjusted to meet the specific needs of the City. Table 1. Tasks and schedule to complete Phase III of Eden Prairie's Pond Inventory and Maintenance Evaluation and P8 model. 2013 2014 May Jun Jul Aug Sep Oct Nov Dec Jan Phase 3412341234512341234512341234123451234 0 'Notice to Proceed 1 Stormwater S stem Anal sis 2 Sedimentation Survey 3 Basin Analysis 4 NURP Criteria Analysis 5 P8 Analysis 6 Report The proposed budget has been estimated on a time and materials basis and includes expenses (mileage,printing, etc.). The tasks and cost per task are identified in Table 2. Table 2. Budget to complete the Eden Prairie Pond Inventory and Maintenance Evaluation. Task ID Description Not-to-Exceed Amount TASK 1 Stormwater System Analyses $7,370 TASK 2 Sedimentation Survey $360 / pond TASK 3 Pond Analysis $165 / pond TASK 4 NURP Criteria Analysis $105 / pond TASK 5 P8 meetings 5A Data Analysis $3,522 5B P8 Modeling $81 / pond 5C Evaluate P8 Model Results $4,125 5F Draft Technical Memorandum $5,190 TASK 6 Report Requirements $137 / pond TASK 7 Meetings, Project Management & Project Summaries $8,700 The cost to complete the project is presented in Table 2 on a per task basis. In discussion with City staff, the total number of basins to be considered for the inventory during Phase IV is 75. The total cost of the proposed project, assuming 75 basins is $87,252. 8 ) .. i. Legend �" • _� ,.. ; uor r ,� �. .*. (((/// Type r ; : �; _. � - Bog r P• —sa I r .. �• r --unrise•Girc1 47 Constructed Ponds /. I - ,t I " 4 • c• °" Eearpath fourrtry flub y . 'f , ,1 `�• 1 F1 .� r .. 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' - . / f '1 61 Er i y�, I r •.ena 111160• f 2010 Aerial Photograph(Source:Mn GEO) r ',, N H I ' e 1 I, k c 1,000 500 0 1,000 ���. Feet AG . . , . 11 a r r •ath:L:\0094\mxd\PhaselV.mxd �,•°•a tkrAiriity +�f'0.)Mi 6 billocsvra Qiirwrtibrfi.® �p m5 a nab Bate:4/30/2013 Time:1:40:31 PM User WeiEJ0458 A' CITY OF EDEN PRAIRIE Wenck MAY 2013 Engineers-Scientists 1800 Pioneer Creek Center Phase IV Business Professionals Maple Plain,MN 55359-0429 Figure 1 www.wenck.com 1-800-472-2232 Standard Agreement for Professional Services This Agreement ("Agreement") is made on the 25th day of May, 2013,. between the City of Eden Prairie, Minnesota, (hereinafter "City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and Wenck Associates, Inc., a Minnesota Engineering Company(hereinafter "Consultant") whose business address is 1800 Pioneer Creek Center, Maple Plain, MN 55359. Preliminary Statement The City has adopted a policy regarding the selection and hiring of consultants to provide a variety of professional services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City_ The purpose of this Agreement is to set forth the terms and conditions for the provision of professional services by Consultant for Phase IV Pond Inventory, Maintenance Program Evaluation; hereinafter referred to as the "Work". The City and Consultant agree as follows: 1. Scope of Work. The Consultant agrees to provide the professional services shown in Exhibit A (Phase IV Pond Inventory, Maintenance Program Evaluation) in connection with the Work. The terms of this Agreement shall take precedence over any provisions of the Consultants proposal and/or general conditions including proposals and/or general conditions. If the Consultants proposal is attached as the Exhibit A Scope of Work, City reserves the right to reject any general conditions in such proposal. 2014- 2. Term. The term of this Agreement shall be from May 25`h, 2013 through June 301h, 0'1 the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated, 3. Compensation for Services. City agrees to pay the Consultant on an hourly basis plus expenses in a total amount not to exceed $ $87,252 for the services as described in Exhibit A. A. Any changes in the scope of the work which may result in an increase to the compensation due the Consultant shall require prior written approval by an authorized representative of the City or by the City Council, The City will not pay additional compensation for services that do not have prior written authorization. B. Special Consultants may be utilized by the Consultant when required by the complex or specialized nature of the Project and when authorized in writing by the City. C. If Consultant is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots„ fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Consultant will be entitled to payment for its reasonable additional charges, if'any, due to the delay. 4. City Information. The City agrees to provide the Consultant with the complete information concerning the Scope of the Work and to perform the following services: A. Access to the Area. Depending on the nature of the Work, Consultant may from time to time require access to public and private lands or property. As may be necessary, the City shall obtain access to and make all provisions for the Consultant to enter upon public and private lands or property as required for the Consultant to perform such services necessary to complete the Work. B. Consideration of the Consultant's Work. The City shall give thorough consideration to all reports, sketches, estimates, drawings, and other documents presented by the Consultant, and shall inform the Consultant of all decisions required of City within a reasonable time so as not to delay the work of the Consultant. C. Standards. The City shall furnish the Consultant with a copy of any standard or criteria, including but not limited to, design and construction standards that may be required in the preparation of the Work for the Project. D. City's Representative. A person shall be appointed to act as the City's representative with respect to the work to be performed under this Agreement: He or she shall have complete authority to transmit instructions, receive information, interpret, and define the City's policy and decisions with respect to the services provided or materials, equipment, elements and systems pertinent to the work covered by this Agreement. 5. Method of Payment. The Consultant shall submit to the City, on a monthly basis, an itemized invoice for professional services performed under this Agreement. Invoices submitted shall be paid in the same manner as other claims made to the City for: A. Progress Payment. For work reimbursed on an hourly basis, the Consultant shall indicate for each employee, his or her name, job title, the number of hours worked, rate of pay for each employee, a computation of amounts due for each employee, and the total amount due for each project task. Consultant shall verify all statements submitted for payment in compliance with Minnesota Statutes Sections 471.38 and 471.391. For reimbursable expenses, if provided for in Exhibit A; the Consultant shall provide an itemized listing and such documentation as reasonably required by the City. Each invoice shall contain the City's project number and a progress summary showing the original (or amended) amount of the contract, current billing, past payments and unexpended balance of the contract. B. Suspended Work. If any work'performed by the Consultant is suspended in whole or in part by the City, the Consultant shall be paid for any services set forth on Exhibit A performed prior to receipt of written notice from the City of such suspension. C. Payments for Special Consultants. The Consultant shall be reimbursed for the work of special consultants, as described herein, and for other items when authorized in writing by the City. D. Claims. To receive any payment on this Agreement, the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid." 6. Project Manager and Staffing. The Consultant has designated Joe Bischoff and Ed Matthiesen to serve on the Project. They shall be assisted by other staff members as Standard Agreement for Professional Services Page 2 of 8 necessary to facilitate the completion of the Work in accordance with the terms established herein. Consultant may not remove or replace the designated staff from the Project without the approval of the City. 7. Standard of Care. Consultant shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Consultant shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Consultant's breach of this standard of care. Consultant shall put forth reasonable efforts to complete its duties in a timely manner. Consultant shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Agreement. Consultant shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 8. Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Consultant under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. The books, records, documents and accounting procedures and practices of the Consultant or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement: The Consultant 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 Consultant. 9. Termination. This Agreement may be terminated by either party by seven °(7) days written notice delivered to the other party at the address written above, Upon termination under this provision, if there is no fault of the Consultant, the Consultant shall be paid for services rendered and reimbursable expenses until the effective date of termination. If however, the City terminates the Agreement because the Consultant has failed to perform in accordance with this Agreement, no further payment shall be made to the Consultant, and the City may retain another consultant to undertake or complete the Work identified herein. 10. Subcontractor. The Consultant shall not enter into subcontracts for services provided under this Agreement except as noted in the Scope of Work, without the express written consent of the City. The Consultant shall pay any subcontractor involved in the performance of this Agreement within ten (10) days of the Consultant's receipt of payment by the City for undisputed services provided by the subcontractor, If the Consultant fails within that time to pay the subcontractor any undisputed amount for which the Consultant has received payment by the City, the Consultant shall pay interest to the subcontractor on the unpaid amount at the rate of 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Consultant shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. Standard Agreement for Professional Services Page 3 of 8 11. Independent Consultant. Consultant is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Consultant and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Consultant an employee of the City. 12. Insurance. A. General Liability. Prior to starting the Work, Consultant shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Consultant or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. The policy(ies)shall name the City as an additional insured for the services provided under this Agreement and shall provide that the Consultant's coverage shall be primary and noncontributory in the event of a loss, B. Consultant shall procure and maintain the following minimum insurance coverages and limits of liability on this Project; Worker's Compensation Statutory Limits Employer's Liability $500,000 each accident $500,000 disease policy knit $500,000 disease each employee Comprehensive General Liability $1,500000 property damage and bodily injury per occurrence $2,000,000 general aggregate $2,000,000 Products—Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles. Umbrella or Excess Liability $1,000,000 C. The Comprehensive General/Commercial General Liability policy(ies) shall be equivalent in coverage to ISO form CG 0001, and shall include the following: a. Premises and Operations coverage with no explosions, collapse, or underground damage exclusion (XCU). Standard Agreement for Professional Services Page 4 of 8 b. Products and Completed Operations coverage. Consultant agrees to maintain this coverage for a minimum of two (2) years following completion of its work'. Said coverage shall apply to bodily injury and property damage arising out of the products-completed operations hazard. c. Personal injury with Employment Exclusion (if any) deleted. d. Broad Form CG0001 0196 Contractual Liability coverage, or its equivalent. e. Broad Form Property Damage coverage, including completed operations, or its equivalent. f. Additional Insured Endorsement(s), naming the "City of Eden Prairie" as an Additional Insured, on iSO forms CG 2010 07 04 and CG 2037 07 04, or their equivalent. g. If the Work to be performed is on an attached community, there shall be no exclusion for attached or condominium projects. h. "'Stop gap" coverage for work in those states where Workers' Compensation insurance is provided through a state fund if Employer's liability coverage is not available. Severability of Insureds provision. D. Professional Liability Insurance. The Consultant agrees to provide to the City a certificate evidencing that they have in effect, with an insurance company in good standing and authorized to do business in Minnesota, a professional liability insurance policy. Said policy shall insure payment of damage for legal liability arising out of the performance of professional services for the City. Said policy shall provide an aggregate limit of$2,000,000. Said policy shall not name the City as an insured. E. Consultant shall maintain in effect all insurance coverages required under this Paragraph at Consultant's sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. In addition to the requirements stated above, the following applies to the insurance policies required under this Paragraph: a. All policies, except the Professional Liability Insurance policy, shall be written on an "occurrence"form ("claims made" and "modified occurrence"forms are not acceptable); b. All policies, except the Professional Liability Insurance policy, shall be apply on a`"per project" basis; c. All policies, except the Professional Liability Insurance and Worker's Compensation Policies, shall contain a waiver of subrogation naming "the City of Eden Prairie"; d. All policies, except the Professional Liability Insurance and Worker's Compensation Policies, shall name "the City of Eden Prairie" as an additional insured; e. All policies, except the Professional Liability Insurance and Worker's Compensation Policies, shall insure the defense and indemnity obligations assumed by Consultant under this Agreement; and Standard Agreement for Professional Services Page 5 of 8 f. All polices shall contain a provision that coverages afforded there under shall not be canceled or non-renewed, nor shall coverage limits be reduced by endorsement, without thirty (30) days prior written notice to the City. A copy of the Consultant's Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Consultant's Work. Upon request a copy of the Consultant's insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Consultant has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Consultant of any deficiencies in such documents and receipt thereof shall not relieve Consultant from, nor be deemed a waiver of, City's right to enforce the terms of Consultant's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. F. Effect of Consultant's Failure to Provide insurance. If Consultant fails to provide the specified insurance, then Consultant will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and:expenses of litigation)to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event -giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Consultant, its subcontractors, agents,employees or delegates. Consultant agrees that this indemnity shall be construed and applied in favor of indemnification. Consultant also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. If a claim arises within the scope of the stated indemnity, the City may require Consultant to: a. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or b. Furnish a written acceptance of tender of defense and indemnity from Consultant's insurance company. Consultant will take the action required by the City within fifteen (15) days of receiving notice from the City. 13. indemnification.- Consultant agrees to defend, indemnify and hold the City, its officers, and employees harmless from any liability, claims, damages, costs, judgments, or expenses, including reasonable attorney's fees, to the extent attributable to a negligent or otherwise wrongful act or omission (including without limitation professional errors or omissions) of the Consultant, its agents, employees, or subcontractors in the performance of the services provided by this Agreement and against all losses by reason of the failure of said Consultant fully to perform, in any respect, all obligations under this Agreement. Standard Agreement for Professional Services Page 6 of$ Consultant further agrees to indemnity the City for defense costs incurred in defending any claims, unless the City is determined to be at fault. 14. Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of the Agreement ("Information") shall become the property of the City, but Consultant may retain copies of such documents as records of the services provided. The City may use the information for its purposes and the Consultant also may use the Information for its purposes. Use of the Information for the purposes of the project contemplated by this Agreement ("Project") does not relieve any liability on the part of the Consultant, but any use of the Information by the City or the Consultant beyond the scope of the Project is without liability to the other, and the party using the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. 15. Non-Discrimination. During the performance of this Agreement, the Consultant 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 Consultant shall post in places available to employees and applicants for employment, notices setting forth the provision of this non- discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Consultant further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 16. Compliance with Laws and Regulations. in providing services hereunder, the Consultant shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 17. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 18. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 19. Services Not Provided For. No claim for services furnished by the Consultant not specifically provided for herein shall be honored by the City. Standard Agreement for Professional Services Page 7 of 8 20. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 21. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 22. Waiver., Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24, Conflicts. No salaried officer or employee of the City and no.member of the Council of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. 25. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE Mayor City Manager Wenck Associates Inc. ByJoe Bischoff =) Its:Principal Standard Agreement for Professional Services Page 8 of 8 CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: I.C. 13-5834 ITEM NO.: VIII.E. Mary Krause Award Contract to Allied Blacktop Company Public Works /Engineering for the 2013 Sealcoating Project Requested Action Move to: Award Contract for 2013 Street Sealcoating to Allied Blacktop Company in the amount of$612,993.40. Synopsis Bids were received on Thursday, May 2, 2013 for the 2013 Sealcoating project. Three bids were received and are tabulated as follows: Allied Blacktop Company $612,993.40 Pearson Brothers, Inc. $644,833.58 ASTECH $766,407.10 Background Information Street sealcoating is an annual street maintenance project. The 2013 Operating and Maintenance budget for sealcoating is $210,000. The balance between the actual project costs and the budgeted amount will be taken from the a combin ation of CIP pavem ent maintenance fund for street sealcoating and the Parks and Recreation Division trail and parking lot maintenance funds. Attachment Bid Tabulation 2013 Seal Coating City of Eden Prairie I.C. #13-5834 Pearson Brothers,Inc. Allied Blacktop Co. ASTECH Corp. EST. UNIT UNIT UNIT NO DESCRIPTION QTY. UNIT PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 FA-3,C1.A 356,000 Sq.Yd. $1.47 $523,320.00 $1.41 $501,960.00 $1.77 $630,120.00 (0.34 gal/sq.yd.CRS-2P) Bit.Seal Coat gray or black only 20 lbs/sq.yd.FA-3,CL.A 2 Streets 46,000 Sq.Yd. S I.41 $64,860.00 S I.24 $57,040.00 S 1.43 $65,780.00 FA-2,Modified (0.24 gaUsq.yd/CRS-2) C1.A(1/8"Trap Rock) (20 lbs/sq.yd.FA-2 Mod) Bituminous Seal Coat 3 Trails 24,790 Sq.Yd. S 1.7 3 $42,886.70 $1.50 $37,185.00 $2.15 $53,298.50 FA-2,Modified C1.A(1/8"Trap Rock) (0.24 gal/sq.yd/CRS-2) Bituminous Seal Coat (16 lbs/sq.yd.FA-2 Mod) 4 Parking Lots 8,004 S 1.1'd. S 1.72 $13,766.88 $2.10 $16,808.40 S2.15 $17,208.60 FA-2,Modified (0.28 gal/sq.yd/CRS-2P) CI.A(1/8"trap rock) (16 lbs/sq.yd.FA-2 Mod.) TOTAL BASE BID $644,833.58 $612,993.40 $766,407.10 CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: I.C. 13-5835 ITEM NO.: VIII.F. Mary Krause Award Contract for 2013 Bituminous Overlay Public Works /Engineering Project to William Mueller& Sons, Inc. Requested Action Move to: Award Contract for 2013 Street Bituminous Overlay project to William Mueller and Sons, Inc. in the amount of$1,526,493.00. Synopsis Bids were received on Thursday, May 2, 2013 for the 2013 Bituminous Overlay project. Five bids were received and are tabulated as follows: William Mueller& Sons, Inc. $1,526,493.00 Bituminous Roadways, Inc. $1,548,578.00 GMH Asphalt Corporation $1,555,927.70 Northwest Asphalt, Inc. $1,647,096.80 Hardrives, Inc. $1,653,705.09 Background Information The Bituminous Overlay is an annual street maintenance project. The bituminous prices for this year's overlay project are a bout 15%more than the 2011 overl ay bituminous prices. The 2013 Operating and Mainten ance budget for m illing and overlay is $217,000. The Pavem ent Management CIP fund for 2013 has allo cated an ad ditional $2,000,000 for pavem ent maintenance. In addition to the overlay proj ect, the pavem ent maintenance CIP fund also finances seal coating and other pavement improvement projects. Attachment Bid Tabulation BID TABULATION 2013 Bituminous Overlay City of Eden Prairie, I.C.#13-5835 COMPANY: Hardrives,Inc. WM Mueller and Sons,Inc. GMH Asphalt Corporation Northwest Asphalt Bituminous Roadways,Inc. EST. UNIT UNIT UNIT UNIT UNIT NO DESCRIPTION QTY. UNIT PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 MNDOT MIX SPWEA240B 18,000 Tons $63.95 $1,151,100.00 $58.70 $1,056,600.00 $59.35 $1,068,300.00 $62.00 $1,116,000.00 $58.00 $1,044,000.00 2 MNDOT Mix SPWEA240A 1,000 Tons $67.50 $67,500.00 $62.00 $62,000.00 $61.32 $61,320.00 $63.75 $63,750.00 $62.00 $62,000.00 3 MNDOT Mix SPNWB230B 530 Tons $64.50 $34,185.00 $55.90 $29,627.00 $53.60 $28,408.00 $57.00 $30,210.00 $55.00 $29,150.00 4 MNDOT Mix SPNWB430A 1,662 Tons $60.12 $99,919.44 $56.10 $93,238.20 $54.01 $89,764.62 $56.90 $94,567.80 $54.00 $89,748.00 5 MDNOT Mix SPWEA440A 1,662 Tons $70.25 $116,755.50 $61.90 $102,877.80 $60.34 $100,285.08 $64.00 $106,368.00 $65.00 $108,030.00 6 Bituminous Edge Milling 5,000 L.F. $1.68 $8,400.00 $0.40 $2,000.00 $1.20 $6,000.00 $1.10 $5,500.00 $1.10 $5,500.00 7 Bituminous Full Depth Milling 190,000 Sq.Yd. $0.87 $165,300.00 $0.78 $148,200.00 $0.88 $167,200.00 $0.95 $180,500.00 $1.00 $190,000.00 Bituminous Pavement 8 Reclamation-Full Depth 3,500 Sq.Yd. $1.97 $6,895.00 $2.70 $9,450.00 $2.10 $7,350.00 $1.35 $4,725.00 $1.90 $6,650.00 9 Traffic Control Lump Sum $3,650.15 $22,500.00 $31,100.00 $45,476.00 $13,500.00 TOTAL BASE BID $1,653,705.09 $1,526,493.00 $1,559,727.70 $1,647,096.80 $1,548,578.00 CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: IEM NO.: VIII.G. Robert Ellis Agreement with Wenck Associates for Design Public Works and Construction Administration Services for Slope Stabilization at 11157 Bluestem Lane Requested Action Move to: Approve Professional Services Agreement with Wenck Associates for the Design and Construction Administration of a Slope Stabilization Project at 11157 Bluestem Lane in the amount of$49,500. Synopsis The city has negotiated a professional services agreement with Wenck Associates to prepare construction drawings for the stabilization of the slope at 11157 Bluestem Lane, apply for necessary environmental permits, solicit bids, prepare easements, and administer construction activities. These services have a cost not to exceed of$49,500. Background Information The property contains a steep slope approximately 70 feet in height which extends from south of the residence on the property to Purgatory Creek. The slope is subject to erosion and has experienced significant failures due to the following contributing factors: a. The natural slope has an angle greater than 2:1 that is conducive to slope erosion and instability. b. The presence of groundwater within the slope saturates and weakens the soil, thus creating instability issues. c. The collection of water from roof drains directed at the slope continue to saturate the slope and cause erosion, which then leads to slope instability. d. The lack of vegetation accelerates slope instability as the roots have a tendency to hold and reinforce the slope. The slope failures pose a risk of instability to the property and the residence on the property. Continued slope failures and erosion will increase sediment loading to Purgatory Creek resulting in increased turbidity and reduced water quality. The condition of the slope constitutes a hazard to the property, including the residence and land below the slope. Inaction to stop, slow or prevent further slope failure will likely result in factor of safety values diminishing to 1.0 or less which may result in a catastrophic failure of the retaining wall/yard, deck foundation and/or residence. Attachment Professional Services Agreement Standard Agreement for Professional Services This Agreement ("Agreement") is made on the 21st day of May, 2013, between the City of Eden Prairie, Minnesota (hereinafter"City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and Wenck Associates, Inc., a Minnesota Corporation (hereinafter"Consultant") whose business address is 1800 Pioneer Creek Center, Maple Plain, MN 55359-0249. Preliminary Statement The City has adopted a policy regarding the selection and hiring of consultants to provide a variety of professional services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of professional services by Consultant for design and construction administration of slope stabilization project at 11157 Bluestem Lane hereinafter referred to as the "Work". The City and Consultant agree as follows: 1 Scope of Work. The Consultant agrees to provide the professional services shown in Exhibit A in connection with the Work. The terms of this Agreement shall take precedence over any provisions of the Consultants proposal and/or general conditions including proposals and/or general conditions. If the Consultants proposal is attached as the Exhibit A Scope of Work, City reserves the right to reject any general conditions in such proposal. 2. Term, The term of this Agreement shall be from May 22, 2013 through October 1, 2013 the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated. 3. Compensation for Services. City agrees to pay the Consultant on an hourly basis plus expenses in a total amount not to exceed $$49,500 for the services as described in Exhibit A. A. Any changes in the scope of the work which may result in an increase to the compensation due the Consultant shall require prior written approval by an authorized representative of the City or by the City Council, The City will not pay additional compensation for services that do not have prior written authorization. B. Special Consultants may be utilized by the Consultant when required by the complex or specialized nature of the Project and when authorized in writing by the City. C. If Consultant is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Consultant will be entitled to payment for its reasonable additional charges, if any, due to the delay. 4. City Information. The City agrees to provide the Consultant with the complete information concerning the Scope of the Work and to perform the following services: A. Access to the Area. Depending on the nature of the Work, Consultant may from time to time require access to public and private lands or property. As may be necessary, the City shall obtain access to and make all provisions for the Consultant to enter upon public and private lands or property as required for the Consultant to perform such services necessary to complete the Work. B. Consideration of the Consultant's Work. The City shall give thorough consideration to all reports, sketches, estimates, drawings, and other documents presented by the Consultant, and shall inform the Consultant of all decisions required of City within a reasonable time so as not to delay the work of the Consultant. C. Standards. The City shall furnish the Consultant with a copy of any standard or criteria, including but not limited to, design and construction standards that may be required in the preparation of the Work for the Project. D. City's Representative. A person shall be appointed to act as the City's representative with respect to the work to be performed under this Agreement. He or she shall have complete authority to transmit instructions, receive information, interpret, and define the City's policy and decisions with respect to the services provided or materials, equipment, elements and systems pertinent to the work covered by this Agreement 5. Method of Payment. The Consultant shall submit to the City, on a monthly basis, an itemized invoice for professional services performed under this Agreement. Invoices submitted shall be paid in the same manner as other claims made to the City for: A. Progress Payment. For work reimbursed on an hourly basis, the Consultant shall indicate for each employee, his or her name, job title, the number of hours worked, rate of pay for each employee, a computation of amounts due for each employee, and the total amount due for each project task. Consultant shall verify all statements submitted for payment in compliance with Minnesota Statutes Sections 471.38 and 471.391. For reimbursable expenses, if provided for in Exhibit A, the Consultant shall provide an itemized listing and such documentation as reasonably required by the City. Each invoice shall contain the City's project number and a progress summary showing the original (or amended) amount of the contract, current billing, past payments and unexpended balance of the contract. B. Suspended Work. If any work performed by the Consultant is suspended in whole or in part by the City, the Consultant shall be paid for any services set forth on Exhibit A performed prior to receipt of written notice from the City of such suspension. C. Payments for Special Consultants, The Consultant shall be reimbursed for the work of special consultants, as described herein, and for other items when authorized in writing by the City. D. Claims. To receive any payment on this Agreement, the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid." 6 Project Manager and Staffing. The Consultant has designated Dave Parenteau to serve on the Project. They shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Consultant may not remove or replace the designated staff from the Project without the approval of the City. 7. Standard of Care. Consultant shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Consultant shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Consultant's breach of this standard of care. Consultant shall put forth reasonable efforts to complete its duties in a timely manner. Consultant shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Agreement. Consultant shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 8. Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Consultant under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior Standard Agreement for Professional Services Page 2 of 7 written approval. The books, records, documents and accounting procedures and practices of the Consultant or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. The Consultant 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 Consultant. 9. Termination. This Agreement may be terminated by either party by seven (7) days written notice delivered to the other party at the address written above. Upon termination under this provision, if there is no fault of the Consultant, the Consultant shall be paid for services rendered and reimbursable expenses until the effective date of termination. If however, the City terminates the Agreement because the Consultant has failed to perform in accordance with this Agreement, no further payment shall be made to the Consultant, and the City may retain another consultant to undertake or complete the Work identified herein. 10. Subcontractor. The Consultant shall not enter into subcontracts for services provided under this Agreement except as noted in the Scope of Work, without the express written consent of the City. The Consultant shall pay any subcontractor involved in the performance of this Agreement within ten (10) days of the Consultant's receipt of payment by the City for undisputed services provided by the subcontractor. If the Consultant fails within that time to pay the subcontractor any undisputed amount for which the Consultant has received payment by the City, the Consultant shall pay interest to the subcontractor on the unpaid amount at the rate of 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Consultant shall pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing the action. 11. Independent Consultant. Consultant is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this Agreement, who shall be employees, and under the direction, of Consultant and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein shall be construed so as to find the Consultant an employee of the City. 12. Insurance. A. General Liability. Prior to starting the Work, Consultant shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Consultant or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. The policy(ies) shall name the City as an additional insured for the services provided under this Agreement and shall provide that the Consultant's coverage shall be primary and noncontributory in the event of a loss. B. Consultant shall procure and maintain the following minimum insurance coverages and limits of liability on this Project: Worker's Compensation Statutory Limits Employer's Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Comprehensive General Liability $1,500,000 property damage and bodily injury per occurrence Standard Agreement for Professional Services Page 3 of 7 $2,000,000 general aggregate $2,000,000 Products—Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident(shall include coverage for all owned, hired and non-owed vehicles. Umbrella or Excess Liability $1,000,000 C The Comprehensive General/Commercial General Liability policy(ies) shall be equivalent in coverage to ISO form CG 0001, and shall include the following: a. Premises and Operations coverage with no explosions, collapse, or underground damage exclusion (XCU). b. Products and Completed Operations coverage. Consultant agrees to maintain this coverage for a minimum of two (2) years following completion of its work Said coverage shall apply to bodily injury and property damage arising out of the products-completed operations hazard. C. Personal injury with Employment Exclusion (if any) deleted. d. Broad Form CG0001 0196 Contractual Liability coverage, or its equivalent. e. Broad Form Property Damage coverage, including completed operations, or its equivalent. f. Additional Insured Endorsement(s), naming the "City of Eden Prairie" as an Additional Insured, on ISO forms CG 2010 07 04 and CG 2037 07 04, or their equivalent. g. If the Work to be performed is on an attached community, there shall be no exclusion for attached or condominium projects. h. "Stop gap" coverage for work in those states where Workers' Compensation insurance is provided through a state fund if Employer's liability coverage is not available. Severability of Insureds provision. D. Professional Liability Insurance. The Consultant agrees to provide to the City a certificate evidencing that they have in effect, with an insurance company in good standing and authorized to do business in Minnesota, a professional liability insurance policy. Said policy shall insure payment of damage for legal liability arising out of the performance of professional services for the City. Said policy shall provide an aggregate limit of $2,000,000. Said policy shall not name the City as an insured. E. Consultant shall maintain in effect all insurance coverages required under this Paragraph at Consultant's sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. In addition to the requirements stated above, the following applies to the insurance policies required under this Paragraph: a. All policies, except the Professional Liability Insurance policy, shall be written on an "occurrence" form ("claims made" and "modified occurrence" forms are not acceptable); Standard Agreement for Professional Services Page 4 of 7 b. All policies, except the Professional Liability insurance policy, shall be apply on a "per project" basis; c. All policies, except the Professional Liability Insurance and Worker's Compensation Policies, shall contain a waiver of subrogation naming "the City of Eden Prairie"; d. All policies, except the Professional Liability Insurance and Worker's Compensation Policies, shall name "the City of Eden Prairie" as an additional insured; e. All policies, except the Professional Liability Insurance and Worker's Compensation Policies, shall insure the defense and indemnity obligations assumed by Consultant under this Agreement; and f. All polices shall contain a provision that coverages afforded there under shall not be canceled or non-renewed, nor shall coverage limits be reduced by endorsement, without thirty (30) days prior written notice to the City. A copy of the Consultant's Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Consultant's Work. Upon request a copy of the Consultant's insurance declaration page, Rider and/or Endorsement, as applicable shall be provided, Such documents evidencing Insurance shall be in a form acceptable to City and shall provide satisfactory evidence that Consultant has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence of insurance, or to advise Consultant of any deficiencies in such documents and receipt thereof shall not relieve Consultant from, nor be deemed a waiver of, City's right to enforce the terms of Consultant's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. F. Effect of Consultant's Failure to Provide Insurance. If Consultant fails to provide the specified insurance, then Consultant will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Consultant, its subcontractors, agents, employees or delegates. Consultant agrees that this indemnity shall be construed and applied in favor of indemnification. Consultant also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. If a claim arises within the scope of the stated indemnity, the City may require Consultant to a. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or b. Furnish a written acceptance of tender of defense and indemnity from Consultant's insurance company. Consultant will take the action required by the City within fifteen (15) days of receiving notice from the City. Standard Agreement for Professional Services Page 5 of 7 13. Indemnification. Consultant agrees to defend, indemnify and hold the City, its officers, and employees harmless from any liability, claims, damages, costs, judgments, or expenses, including reasonable attorney's fees, to the extent attributable to a negligent or otherwise wrongful act or omission (including without limitation professional errors or omissions) of the Consultant, its agents, employees, or subcontractors in the performance of the services provided by this Agreement and against all losses by reason of the failure of said Consultant fully to perform, in any respect, all obligations under this Agreement. Consultant further agrees to indemnity the City for defense costs incurred in defending any claims, unless the City is determined to be at fault. 14. Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of the Agreement ("Information") shall become the property of the City, but Consultant may retain copies of such documents as records of the services provided. The City may use the Information for its purposes and the Consultant also may use the Information for its purposes. Use of the Information for the purposes of the project contemplated by this Agreement ("Project") does not relieve any liability on the part of the Consultant, but any use of the Information by the City or the Consultant beyond the scope of the Project is without liability to the other, and the party using the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. 15 Non-Discrimination. During the performance of this Agreement, the Consultant 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 Consultant shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. The Consultant further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 16. Compliance with Laws and Regulations. In providing services hereunder, the Consultant shall abide by statutes, ordinances, rules, and regulations pertaining to the provisions of services to be provided. Any violation of statutes, ordinances, rules and regulations pertaining to the services to be provided shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 17, Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties, Mediation shall be held in the City of Eden Prairie unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 18. Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 19. Services Not Provided For. No claim for services furnished by the Consultant not specifically provided for herein shall be honored by the City. Standard Agreement for Professional Services Page 6 of 7 20. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement, 21. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 22. Waiver. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 23. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 24. Conflicts. No salaried officer or employee of the City and no member of the Council of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. 25. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE Mayor City Manager Arbtz FIRM NA 4/ BY: I // Its:� 7 24 Revised and Copied into Purchasing Policy March 2013 Standard Agreement for Professional Services Page 7 of 7 Wenck Associates,Inc. 1800 Pioneer Creek Ctr. P.O.Box 249 Maple Plain,MN 55359-0249 We nck (763)479-4200 Fax(763)479-4242 E-mail:wenckmp@wenck.com May 10, 2013 Robert Ellis, PE, PTOE Public Works Director City of Eden Prairie, Minnesota 8080 Mitchell Road Eden Prairie, MN 55344-4485 Re: Proposal for Design and Construction Phase of the Slope Stabilization on Property at 11157 Bluestem Lane. Wenck File#0094-35 Dear Robert: Wenck Associates, Inc. (Wenck) is pleased to submit this proposal to the City of Eden Prairie (City)to proceed with the design and construction phase for the stabilization of the slope failure at 11157 Bluestem Lane. SCOPE/BUDGET Wenck proposes the following scope items which are described below with the corresponding estimated fees: 1. Design 2. Easement Assistance 3. Legal Assistance 4. Environmental Permitting 5. Quote(s) Solicitation 6. Construction Field Services/Contractor Management Design Wenck will take the slope stabilization design as presented in our May 7, 2013 report and prepare appropriate drawings, details and technical specifications for the contractors to base their quotes on. Specific items that need to be presented include: site access corridor, potential staging areas, helical anchor design, selection of appropriate geotextile(s), riprap gradation(s) and specific site restoration activities. As we have discussed the project will be divided into two phases with the slope stabilization activities being one phase and the site restoration phase being a second. We will obtain quotes for both phases at once to provide for an efficient use of time. We anticipate the drawings will consist of 3-4 site maps and 2-3 sheets of design details. Technical specifications will consist of CSI Division 2 only. We do not anticipate the need for any CSI Division 1 specifications for a project such as this one, however, should the City feel these are necessary;we are prepared to include them. Wenck also recommends the inclusion of an erosion control map and erosion control details that would normally be included in a Stormwater Pollution Prevention Plan (SWPPP). This T:\0094 Eden Prairie\35 11157 Bluestem Lane\LRE 051013.docx May 10, 2013 Robert Ellis, PE, PTOE City of Eden Prairie, Minnesota Page 2 project does not exceed the disturbance area threshold (1 acre)that would require a Construction Stormwater NPDES permit and accompanying SWPPP, however with the work being done so close to Purgatory Creek; Wenck recommends these be included as a safeguard. Mr. Dave Parenteau, P.E. will manage the project and be the certifying engineer, signing the drawings and technical specifications as a Professional Engineer registered in Minnesota. Ed Matthiesen, P.E.will assist in the design and provide senior peer review. Wenck's estimated fees for this task are$11,500 Easement Assistance Wenck will assist the City in securing the necessary temporary construction easement to access the property for the slope stabilization. Wenck anticipates that this work will be primarily our GIS person preparing appropriate maps and will work with the City Attorney to prepare these exhibits. Wenck does not have a Registered Land Surveyor(RLS) on staff, and have not included any associated fees for an RLS to perform any field surveys. We can retain a RLS if needed however and negotiate a change in scope/fees with the City, should that be necessary. Wenck's estimated fees for this task are$1,800 Legal Assistance Wenck will assist the City's legal counsel as requested in executing the repair orders and any other legal matters that may become part of this project. The services to be provided are undetermined at this point, and we are therefore allocating fees that correspond to 20-30 hours of time at Mr. Parenteau's and Mr. Matthiesen' s billing rates. As the project progresses, and as Wenck is requested to provide such legal assistance,Wenck will notify the City and provide an estimated effort in advance of accruing any fees related to this task. Wenck's estimated fees for this task are$4,500 Environmental Permitting Wenck will work with the appropriate governmental units to secure the necessary permits for the work contemplated. A permit will be required from the Minnesota Department of Natural Resources (MnDNR) and possibly from the United States Corps of Engineers (USCOE). The site falls within the boundary of the Riley Purgatory Bluff Creek Watershed District (District), however,they do not have a permit program. Wenck recommends communication and coordination with the District Administrator, Clair Besser, due to water resource coordination between the City and the District. Wenck will complete the DNR permit with follow up with Jack Gleason,the MnDNR Area Hydrologist for this area. The MnDNR will forward a copy of the permit to the USCOE. Due to the immediacy of the project we will call Melissa Jenny,the local USCOE representative to work with them on permitting activities, whether they will be issuing a permit on their own or comment through the DNR. Wenck's estimated fees for this task are$5,200 T:\0094 Eden Prairie\35 11157 Bluestem Lane\LRE 051013.docx May 10, 2013 Robert Ellis, PE, PTOE City of Eden Prairie, Minnesota Page 3 Quote(s)Solicitation Wenck will solicit quotes from at least 2 qualified contractors and make a recommendation to the City. As part of this task, Wenck will include any City required insurance and bonding information, as well as a sample contract, so the contractors can account for this in their bid preparation. Wenck does not anticipate preparation and distribution of formal bid addenda; however we will be available to answer questions during the quote solicitation period. Wenck will conduct a site meeting where the contractors are invited to visit the site before submitting their quotes,which we anticipate requiring to be submitted within 1 week of the site visit. Quotes will be accepted by Wenck by either fax or via e-mail and we will then tabulate them and make a formal recommendation to the City. Wenck's estimated fees for this task are$2,500 Construction Field Services/Contractor Management Wenck recommends daily construction observation during this stabilization project to ensure that field conditions are consistent with the assumptions in our May 7 report to the City and monitor the progress of the contractor. Wenck proposes to use the same staff engineer, Mr. Jason Warne, P.E. that performed the slope stability analysis to be the on-site construction observer. Mr. Warne will work under the direction of Mr. Parenteau and Mr. Matthiesen and report to them daily. We anticipate Mr. Warne is on site for approximately 4 hours/day for 2 weeks during the slope stabilization project and 1 week during restoration. We will confirm this schedule once the quotes have been received and will advise the City at that point if changes to our anticipated level of effort are necessary. Mr. Warne will obtain site photographs and prepare a brief written daily report documenting the construction activities that occurred and an estimate of the quantities of the various bid items that were placed that day. At the conclusion of the project, Wenck will perform a field GPS survey to delineate areas and confirm quantities as appropriate. Wenck will prepare a "record drawing"that consists of a map based on this field survey and will include this drawing in a brief letter report that summarizes the construction events. The report will be signed by Mr. Parenteau and include the following: • Brief narrative summarizing the construction activities • Signed certification statement that the project was constructed in general accordance with the approved plans and specifications. • Appendices o Photographs o Field reports o Record Drawing Wenck will work with the City to complete the traditional Contractor Management/Contract Administration activities, such as submittal review, progress meeting facilitation and documentation, pay request review and recommendation, lien waivers, appropriate IC-134 tax forms as required by the Department of Revenue and any necessary change order negotiation. T:\0094 Eden Prairie\35 11157 Bluestem Lane\LRE 051013.docx May 10, 2013 Robert Ellis, PE, PTOE City of Eden Prairie, Minnesota Page 4 Wenck's estimated fees for this task are$18,000 during the slope stabilization phase and $6,000 during the restoration phase. SCHEDULE We are prepared to begin the work immediately and can have draft design documents for the City to review mid-week the week of May 20, 2013. We then anticipate finalizing no later than Tuesday May 28 and will obtain quotes the following week. Easement, Permitting and Legal assistance activities can be completed concurrent with these other tasks. We look forward to working with you and your staff on this project. Should you have any questions on this proposal, please contact me. Sincerely, WENCK ASSOCIATES, INC. David M. Parenteau, PE Principal 763 479 4243 dparenteau@wenck.com C: Rodney W. Ambrosie, P.E.; Wenck Associates, Inc. Ed Matthiesen, P.E.; Wenck Associates, Inc. T:\0094 Eden Prairie\35 11157 Bluestem Lane\LRE 051013.docx CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: 11-5799 ITEM NO.: VIII.H. Carter Schulze First Amendment to Agreement for Special Public Works /Engineering Assessments with United HealthCare Services, Inc. Requested Action Move to: Approve the First Amendment to Agreement Regarding Special Assessments with United HealthCare Services, Inc. as it relates to the Shady Oak Road Improvements. Synopsis On May 8, 2012, the City and United HealthCare Services, Inc. entered into an agreement regarding special assessments (agreement). Within that agreement, three phases of improvements are identified along with costs and milestones of when the costs will be assessed for each improvement. When the northern section of Shady Oak Road was bid for construction the City West Parkway roundabout improvements, listed in the agreement in Phase Two, were included as an alternate bid package. Since bid results were favorable, the roundabout was included with the project. For that reason, the first amendment moves the City West Parkway roundabout improvements from Phase Two to Phase One providing for assessment of its cost with Phase One. Financial Implications Original Agreement Phase One Phase Two Phase Three 10,550,000 8,280,000 6,210,000 Amended Agreement Phase One Phase Two Phase Three 12,540,000 6,280,000 6,210,000 Attachments • First Amendment to Agreement Regarding Special Assessments • Recorded Agreement Regarding Special Assessments (Abstract)-v1 FIRST AMENDMENT TO AGREEMENT REGARDING SPECIAL ASSESSMENTS -b4 THIS IS AN AGREEMENT MADE THIS day of April, 2013, between the City of Eden Prairie, a municipal corporation, (the "City") and United HealthCare Services, Inc., a Minnesota corporation (the "Owner"). This Agreement is hereinafter referred to as the "First Amendment." A. The Owner holds legal and equitable title to property described on Exhibit A which property is the subject of this First Amendment and is hereinafter referred to as the "Property." B. City and Owner entered into that certain Agreement Regarding Special Assessments dated the 8th day of May, 2012 and recorded on the 17th day of May, 2012 as Document Numbers A9790080 with the Office of the County Recorder and as Document Number T4955975 with the Office of the Registrar of Titles (hereinafter referred to as the "Agreement") pertaining to the Property. C. City and Owner desire to amend the Agreement by moving one of the Phase Two Improvements into Phase One and providing for the assessment of the cost of such with the Phase One Improvements and by revising Exhibit A. AGREEMENTS IT IS HEREBY AGREED as follows: 1. The first paragraph of Section 1.A is amended in its entirety to read as follows: A. The assessments levied for the Phase One Improvements pursuant to this Agreement shall be limited to 100%of the Project Costs for the western segment of West 62nd Street,the northern segment of Shady Oak Road (CR 61)and for the northern segment of City West Parkway,specifically described below in a-h and identified as Phase One Improvements on Exhibit B hereto. The assessment shall be levied upon substantial completion of Phase One Improvements. The Phase One Improvements are required to be constructed concurrent with the development of Developer's Phase I. The Phase One Improvements will be consistent with Exhibit B as revised and attached hereto. 2. The Agreement is further amended by deleting Section 1. B. a. which is a 1 Phase Two Improvement referred to in Section 1.B.a. as "100% of the Project Costs for the reconstruction of City West Parkway North Segment including pedestrian and bicycle accommodations to the east of Shady Oak Road to provide a roundabout at the intersection of City West Parkway and the north-south interval private road" and inserting the language deleted from Section 1. B. a. into the Agreement as Section 1.A.h. 3. Paragraph 1 is further amended as follows: a. Delete the amount of"$10,550,000" for Phase One and insert it its place the amount of"$12,540,000;" b. Delete the amount of"$8,280,000" for Phase Two and insert in its place the amount of"$6,280,000." 4. Exhibit A is replaced in its entirety with Exhibit A attached hereto. 5. This First Amendment shall be effective immediately. 6. Except as expressly provided in this First Amendment, all provisions of the Agreement remain in full force and effect and are not modified by this First Amendment, and the parties hereby ratify and confirm each and every provision thereof. 7. This First Amendment constitutes the entire agreement between the parties with respect to the subject matter herein contained and all prior negotiations with respect to the subject matter herein contained are merged into and incorporated in this First Amendment, and all prior documents and correspondence between the parties with respect to the subject matter herein contained (other than the Agreement) are superseded and of no further force or effect. 8. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 9. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns under the Agreement. 2 CITY OF EDEN PRAIRIE A Minnesota Municipal Corporation By: Its: Mayor By: Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of April, 2013, by Nancy Tyra-Lukens, the Mayor, and Rick Getschow,the City Manager, of the City of Eden Prairie, a Minnesota municipal corporation, on behalf of the corporation. Notary Public 3 UNITED I ,A HCARE SERVICES,INC. By: Its: p Restor Johnson STATE Ve Mf r058141AEtle Sun/ices ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this 0 day of April, 2013, by ' 1 S iflt- 'cnln R 3O Yl , the [ , of United HealthCare Services, Inc., a Minnesota corporation on behalf of the company. a -2k4/1\d/01\' fli/C ) 9! ;:s ',, BRANDY MARIE MORROW Notary Public NOTARY PUBLIC-MINNESOTA My Commission Expires Jan.31,2017 y $ THIS INSTRUMENT WAS DRAFTED BY: Richard Rosow Gregerson Rosow,Johnson &Nilan 650 Third Ave. South, Suite 1600 Minneapolis, MN 55402 4 EXHIBIT A - LEGAL DESCRIPTIONS Lot 1, Block 1; Lot 1, Block 2, City West Corporate Addition, Hennepin County, Minnesota 5 EXHIBIT B — Phase One Improvements [See Next Page] 6 I I 4 .". . ,,..4,.--,-,. ...-ist "tt...• ,,..;t, ,.. .....t ••:'. -,,,:".";"•:,„:„:--.. C Tilli • •' #, ....‘ PHASE THREE IMPROVEMENTS , ,.....t...,p',.,., .,... (W 62ND ST - EAST SEGMENT) •. „.*-...,.4 • !...'1*.it..tx •,' .. . '''.' ..- ... ___ ., . . _. ... . ..._ ,,...,_,.._,i---•!,•:.,,.. . ::,..:.:•.. ... , . .; ,, ........ • . e . 7E4 ..-, ' - .•..•;' •..' -.7 "7;5' .-'•-''-' .4r;; .'1.-"il'•''.N\.'' 2,1k4s.4'-' '• 'I l't .„,.....,..,.. 'V..odt • . ,14' .lii lig.ZAt 1 — ' VP'— .''' .'L -lb-'..!'••-4•.,' ••'.' , • .... • — -,...., ''_..041.:11S: 1%,.,"'‘:->" V,A ,.....7 t, -,:A. „A,'••=1„i;'. •4-1?.:'. . '`1; `'4,1ii' .""'..'.. • 4 .. ... --'-'ZZ,L7.:•1.'..::::.. l':.----' . ".,...:„.. . . . ',.„ ,"'4:A, ' i 4-.••14,,...... .i•,,.. ..x., • VI : - .' .;; • '-s• •:.... ..,,,,,:' ,....;:.,-•:' ....:. ..,,,,,.,. ,\VI, • ••14 ,.._ .. ..,,mo.....‘„. •:f. 4L,, :••.,..,.:'.' ,, \ • ;;:. „ +., , - ..,,,,'i'.! -.....• .A.;,',..' '. • ..'.•'0'..fr''.1'/°' .1:„....1116.A.t. : .. kr4A7,,,--.: 111111. 77.4 , PHASE ONE .. 47-1. 0.441W- *.p.1 ,,....t A, „.. tetrArCf/PIPASIDT,S :'.;'...'''.4:'re. - ....1.--:la';',;••• ••::•••••••:;.' HWY 62RAMPS W 62ND ST - WEST §EGMENT •,:r. ,, . . r"'•'''', L'''kk - :. AND CITY WEST ,.. . • 1,•..`i L,..• ,f, k•.., PARKWAY - NORTH SEGMENT) •• • --•••'• \\l' - -• •- ' •r•-• -: ,• ' :•-,- . . , .•,. • . • ••• • •`..:.!' -4-• .: • . 'f.1;•••'. .: -Of -;'), . 4 " •% .. ! kt, *.'ek, . '.i'''•• '" • ' - .73..."-'1.. „.. • ,: .„ ,• ...,..,- 1,, ---;,....,..... . . „ .,,:,....:..„..:...„..„•_,„,4 ., ../. •• ' , .-,..:.1AV.;.,....7r• ‘issr..':.Z.., ' .' e -,,N,,4. . v. ...e...,:44,..' •, ,,,,t• ..• (SHADY OAK ROAD ..• !..x... 1,: : r.'..„4„.....,tct\••• ... ...' ,.:.. •t) , .r i i. ..4„/J.... ,.i .,,.. . ,.: ... CENTRAL SEGMENT) • L. • .-•••:,;:...e..,•...v.,::., •-,./..:•. .§, ••i•• z,,,of .• t.' •.' ' .,./ ;;-. ,..4„ )4.,".,'T: ' • ..- -,.. - :;:t. ".'• '•••••• '',:• 1/4. •• . ' 1*/ •! • .,. . • 14••.• 4", ...t„....q„ 1.4 ,::47,1,,::::,,:,:, . i ;:,-.,,'''., '.f,-..--:•• ...; • v,illtitig ,:771.., ..:27.):'.....d.. :• I °'"i'ci,..1: ''' • ' •:•:'1. ''7111 ." ..40..', • ,z,::_•.: #i. . . „ . '..'. '...,........ p. .• - :-. i',•-,t-f •••.'• •.: i 14 'ck.. PHASE TWO & THREE -:‘' ' 1 f is. if, ,.p ,.:,• .f.- -.4-:„.. .... •,. IMPROVEMENTS .':,..1.. q ;:,:'," '.-':.. - -0444y..7.'•.-!4'..i.04§,•.: (CITY WEST PARKWAY .. .• - ff .-(•.• SOUTH INTERSECTION) '.L :':..:!..iti•''.. : - ' ' •-•• , ••-•![" -..-• , •• . r V,4:Yrt•,,, ,,7. • / .A 7.,1,,,,e,' ,•,; • ..k 3;;;; i • i,,4 ' i ii a ' r''&•,• , -'' Ati • .P'?'- (HIGHWAY 212/ - "• -:',. 4Lii• SHADY OAK ROAD INTERCHANGE) (FLYING CLOUD DRIVE INTERSECTION) ....lrl.: / ,144€51/,`YotarotnovA, sai --...... 11111 .......... CD *......... MI ........^ el3 L....ft.... rg •••• LE ....... da ......... & m EXHIBIT B Doc No A9790080 Certified, filed and/or recorded on 5/17/12 4:00 PM Office of the County Recorder Hennepin County, Minnesota Rachel Smith, Acting County Recorder Mark V. Chapin, County Auditor and Treasurer Deputy 45 Pkg ID 805499C Doc Name: Agreement Document Recording Fee $46.00 Attested Copy or Duplicate $2.00 Original Document Total $48.00 411111.1111116, This cover sheet is now a permanent part of the recorded document. AGREEMENT REGARDING SPECIAL ASSESSMENTS THIS IS AN AGREEMENT MADE THIS V day of ri( , 2012, between the City of f /14 ,j,ri e. , a municipal corporation (the "City" d United HealthCare Services, Inc., a Minnesota corporation (the "Owner"). A. The Owner holds legal and equitable title to property described on Exhibit A, which property is the subject of this Agreement and is hereinafter referred to as the "Property." B. The Owner desires to develop the Property in such a manner that requires the construction of the following public improvements (all of which are hereafter referred to as the "Improvement"). C. The costs of the Improvements shall include, in addition to actual construction costs, actual related project expenses including but not limited to property acquisition, costs of capitalized interest, legal expenses, engineering services, inspection, testing, and bond placement costs, remediation of hazardous waste or contamination,plus City administrative fees. D. The parties hereto desire to enter into an Agreement concerning the financing of the construction of the Improvements all of which will inure to the benefit of the Property. E. The parties hereto have entered into that certain Development Agreement dated the jar day of /la reh , 2012, hereinafter referred to as the "Development Agreement." Words and phrases herein have the same meaning as set forth in the Development Agreement. AGREEMENTS IT IS HEREBY AGREED as follows: 1. The Owner consents to the levying of assessments against such portions of the Property as described below in the amount of$10,550,000 for Phase One, $8,280,000 for Phase Two and $6,210,000 for Phase Three all as described below. Phase One Improvements may be levied over a term of up to 15 years. The term of the Phase Two Improvements and the Phase Three Improvements shall be over a term of fifteen (15) 4813-0374-2223\3 5/2/2012 9:28 AM years (unless the Developer requests less) if the assessments are levied in the year the first final plat is released to the Developer. The term shall thereafter decrease by one year for each year after the year in which the first final plat is released to the Developer; provided, however, the term shall in no event be shorter than seven (7) years (unless the Developer requests less). A. Phase One Improvements. The assessment levied for the Phase One Improvements pursuant to this Agreement shall be limited to 100% of the Project Costs for the western segment of West 62nd Street, and the northern segment of Shady Oak Road (CR 61) specifically described below in a—g and identified as Phase One Improvements on Exhibit B hereto. The assessment shall be levied upon substantial completion of the Phase One Improvements. The Phase One Improvements are required to be constructed concurrent with the development of Developer's Phase I. The Phase One Improvements will be consistent with Exhibit B and include: a. Full reconstruction of Shady Oak Road including pedestrian and bicycle accommodations from south of the City West Parkway North Intersection to north of the Highway 62 North Ramp Intersection, specifically excluding trail improvements on the west side of Shady Oak Road. b. Widening and reconstruction of Shady Oak Road under Highway 62 to provide a second left turn lane (dual lefts) on the south approach of the Highway 62 North Ramp intersection and right turn lanes on the north and south approaches of the Highway 62 South Ramp Intersections. c. Reconstruction of the Shady Oak Road / West 62"d Street intersection to provide a second left turn lane (dual lefts) on the north approach, a third through lane and a right turn lane on the south approach, and four approach lanes on both the east and west approaches of the intersection. d. Reconstruction of West 62nd Street including pedestrian and bicycle accommodations from Shady Oak Road to approximately 650 feet east of Shady Oak Road. e. Widening and reconstruction of the Highway 62 northwest ramp. f. Widening and reconstruction of the Highway 62 southwest ramp. g. Reconstruction of the Shady Oak Road / City West Parkway North intersection to provide left and right turn lanes on the north and south approaches, and four approach lanes on the east approach to the intersection and specifically excluding the southbound right-turn lane on the north approach to Old Shady Oak Road. B. Phase Two Improvements. The assessment for Phase Two Improvements may be assessed in one or more levies. The initial assessment for Phase Two Improvements may be levied simultaneous with the issuance of a building permit for -2- 4813-0374-2223\3 5/2/2012 928 AM Developer's Phase II. The assessment levied for Phase Two Improvements pursuant to this Agreement shall be limited to the Project Costs as set forth below in a-d. and identified as Phase Two Improvements on Exhibit B. The Phase Two Improvements and project percentages to be assessed for Phase Two Improvements are as follows: a. 100% of the Project Costs for the reconstruction of City West Parkway North Segment including pedestrian and bicycle accommodations to the east of Shady Oak Road to provide a roundabout at the intersection of City West Parkway and the north-south internal private road. b. 60% of the Project Costs for the City West Parkway South Intersection. The improvement includes but is not limited to reconstructing the intersection to provide left and right turn lanes on the east and west approaches, a second left turn lane (dual left) on the north approach of the intersection and pedestrian and bicycle accommodations. c. 14% of the Project Costs for Shady Oak Road (CR 61) between the limits of the improvements constructed as part of Phase One Improvements and the City West Parkway South Intersection (improvement b. above). The improvement includes the full reconstruction of Shady Oak Road to a 4-lane divided roadway with turn lanes and pedestrian and bicycle accommodations. d. 8% of the Project Costs for the Highway 212 / Shady Oak Road (CR 61) interchange improvement. The improvement includes the full reconstruction of the interchange including the construction of a bridge with pedestrian and bicycle accommodations. For the purposes of cost participation the associated improvements at the City West Parkway South Intersection (improvement b. above) and the Flying Cloud Drive Intersection will be considered separate projects. C. Phase Three Improvements. The assessment for Phase Three Improvements may be assessed in one or more levies. The initial assessment for Phase Three Improvements may be levied simultaneous with the issuance of a building permit for Developer's Phase III. The assessment levied for Phase Three Improvements pursuant to this Agreement shall be limited to the Project Costs as set forth below in a-d and identified as Phase Three Improvements on Exhibit B. The Phase Three Improvements and percentages to be assessed for Phase Three Improvements are as follows: a. 100% of the Project Costs for the eastern segment of West 62nd Street. The improvement includes the reconstruction of West 62" Street including pedestrian and bicycle accommodations from the termination of the western segment of the West 62nd Street improvements (item 1.A.d. above) to east of the access point to Building 4, including the termination of West 62nd Street as a cul-de-sac and the removal of any unused portion of existing West 62" Street. These improvements shall be constructed by -3- 4813-0374-2223\3 5/2/2012 9:28 AM the opening of the LRT for passenger service or by the time the certificate of occupancy for Developer's Phase III (as described in Exhibit 0 of the Developer's Agreement) is issued, whichever occurs earlier. This date and the terms of the Special Assessment Agreement in relation to this project may be extended only by mutual consent. b. 40% of the Project Costs for the City West Parkway South Intersection. The improvement includes but is not limited to reconstructing the intersection to provide left and right turn lanes on the east and west approaches, a second left turn (dual left) on the north approach of the intersection and pedestrian and bicycle accommodations. c. 9% of the Project Costs for Shady Oak Road (CR 61) between the limits of the improvements constructed as part of Phase One Improvements and the City West Parkway South Intersection (improvement b. above). The improvement includes the full reconstruction of Shady Oak Road to a 4-lane divided roadway with turn lanes and pedestrian and bicycle accommodations. d. 6% of the Project Costs for the Highway 212 / Shady Oak Road (CR 61) interchange improvement. The improvement includes the full reconstruction of the interchange including the construction of a bridge with pedestrian and bicycle accommodations. For the purposes of cost participation the associated improvements at the City West Parkway South Intersection (improvement b. above) and the Flying Cloud Drive Intersection will be considered separate projects. Assessments for each of the above identified Phase One Improvements, Phase Two Improvements and Phase Three Improvements will not be in an amount greater than the Project Costs for the Improvements, as defined in Paragraph C on page one hereof for that particular Phase even if said amount is less than maximum allowed in this paragraph 1; provided, however, the assessment for Phase One Improvements will not exceed $10,550,000 even if Project Costs exceed this amount. The City may levy additional assessments for Phase Two and Phase Three Improvements, which assessments are not subject to the waivers contained in the assessment agreement and which assessments must be levied only pursuant to the procedure set forth under Minnesota Statutes Section 429, which include notice, hearing and opportunity for the Developer to object to such additional assessments. Further such additional assessments for Phase Two Improvements and Phase Three Improvements, if levied, are subject to the following restrictions: (i) the additional assessments must pertain to work performed consistent with the scope as described in Section 16 of the Development Agreement and depicted in Exhibit B, page 1 hereof; and (ii) the additional assessments are limited in amount to the increase in construction costs as determined pursuant to the Engineering News Record, Construction Cost Index, Minneapolis, with 2012 being the base year. -4- 4813-0374-2223\3 5/2/2012 9:28 AM 2. The City's assessment records for the Property will show the assessments for Phase One as a "pending assessment" until levied, the assessments for Phase Two as a "pending assessment" when an application for a building permit is filed for Developer's Phase II and the assessments for Phase Three as a "pending assessment" when an application for a building permit is filed for Developer's Phase III. 3. The Owner waives notice of any assessment hearing to be held at which hearing or hearings the assessments are to be considered by the City Council and thereafter approved and levied. 4. The Owner concurs that the benefit to the Property by virtue of the Improvements to be constructed exceeds the amount of the assessment to be levied against the Land. The Owner waives all rights it has by virtue of Minnesota Statute 429.081 or otherwise to challenge the amount or validity of the assessments, or the procedures used by the City in apportioning the assessments, and hereby releases the City, its officers, agents and employees from any and all liability related to or arising out of the imposition or levying of the assessments. 5. This Agreement shall be effective immediately. 6. This Agreement may not be terminated or amended except in writing executed by both parties hereto; provided, however, upon the levying of the special assessments contemplated by Paragraph 1 hereof the City may upon request of the owner of the property affected, without the necessity of further City Council approval, unilaterally prepare and provide to the owner for recording a document releasing any property so levied from this Agreement. 7. This Agreement constitutes a lien upon the Property until such time as the assessments referred to above are levied. 8. Partial pre-payments of special assessments are not allowed. Full pre-payment of special assessments is not allowed unless the Owner pays to the City at the time of the proposed pre-payment a sum equal to X minus Y where X is total principal and interest payable to the City over the full term as levied and Y is the total principal and interest to be paid to the City as a result of a full pre-payment. -5- 4813-0374-2223\3 5/2/2012 9:28 AM IN WITNESS WHEREOF, the parties to this Agreement have caused these presents to be executed as of the day and year aforesaid. UNITED HEALTHCARE S ' VICES, INC., a Minnesota corpo atio 0,1111P r By: / ' .i _ . Name: estor J.,,4�'son Title: Vice Pr, dent, Real Estate Services STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ( day of , 2012, by Restor Johnson, Vice President, Real Estate Services, of Unite althCare S ices, Inc., a Minnesota corporation, on behalf of the corporation /' ary Public .� HOLLY PETERS ",r,M,--1.% NOTARY PUBLIC-MINNESOTA My Commission Expires Jan.31,2015 r ■ [Signature page to Agreement Regarding Special Assessments] 4813-0374-2223\3 5/2/2012 9:28 AM CITY OF EDEN PRAIRIE A Minnesota Municipal Corporation By: ./�.. -. ___ .....—__ _ Its: M' or „Imilba/ By: 1 _ _ O... ,A1IkA Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this /.. day of , 2012, by Nancy Tyra-Lukens, the Mayor, and Rick Getschow, the City Manager, of the ity of Eden Prairie, a Minnesota municipal corporation, on behalf o the corpor,tion. 9 allf 'W24-* 4 N ary Public R;__ KATHLEEN A. PORTA '_ ',it EDEN PRAIRIE CITY CLERK K Notary Public-t�inrlesota ~•• y My Commission Expires.i?. a"1,2015 ,�m vvyv THIS INSTRUMENT WAS DRAFTED BY: City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 [Signature page to Agreement Regarding Special Assessments] -7- 4813-0374-2223\3 5/2/2012 9:28 AM EXHIBIT A Legal Description Real property situated in the State of Minnesota, County of Hennepin legally described as follows: Tract A: That part of the East 43 acres of the Northwest Quarter of the Northwest Quarter of Section 1, Township 116, Range 22 lying Southwesterly of the Southwesterly right-of-way lines of State Highway No. 62, per Book 2622 of Deeds,page 255, and its Westerly continuation. (Torrens Property, Certificate of Title No. 1020665) Tract B: Parcel 1: That part of the following described parcel lying Northerly of a line 393.17 feet Northerly of, as measured at a right angle, to the South line of the North Half of the Northwest Quarter of Section 1, Township 116, Range 22: That part of the Northwest Quarter of the Northwest Quarter of Section 1, Township 116, Range 22 lying West of a line drawn from a point on the North line of said Northwest Quarter of the Northwest Quarter distant 282.5 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter to a point on the South line of said Northwest Quarter of the Northwest Quarter distant 282.5 feet East from the Southwest corner of said Northwest Quarter of the Northwest Quarter; EXCEPT that part of said tract which lies West of a line drawn 40 feet East of the following described Line A: Line A: Beginning at a point on the South line of Section 36, Township 117, Range 22 distant 488.84 feet Easterly of the Southwest corner of said Section 36; thence run Southerly from said line at an angle of 95 degrees 40 minutes 48 seconds as measured from the West to South for a distance of 1,638.23 feet to the actual point of beginning of the line to be described; thence deflect to the right 180 degrees for a distance of 840 feet to a point hereinafter referred to as Point"A",thence continue Northerly for a distance of 200 feet and there terminating. ALSO EXCEPT that part of the above described tract which lies West of the following described Line B: Line B: Beginning at Point "A" on the above described Line A; thence run Easterly at right angles to said Line A for a distance of 40 feet to the actual point of beginning of the line to be described; thence deflect to the left 88 degrees 34 minutes 04 seconds for a distance of 600 feet and there terminating. ALSO EXCEPT that part of the above described tract which lies Northerly of a line drawn parallel with and distant 40 feet Southerly of the following described Line D: Line D: Beginning at a point on the North line of Section 1, Township 116, Range 22 distant 577.37 feet Easterly of the Northwest corner of said Section 1; thence run Southwesterly along a curve tangent to said North line having a radius of 409.26 feet (delta angle 47 degrees 57 minutes 23 seconds) for a distance of 342.55 feet; thence tangent to said curve for a distance of 63.05 feet thence deflect to the right along a tangential curve having a radius of 286.48 feet (delta angle 42 A-1 4813-0374-2223\3 5/2/2012 9:28 AM degrees 15 minutes 00 seconds) for a distance of 211.25 feet; thence tangent to said curve for a distance of 326.31 feet and there terminating. Parcel 2: The North 350 feet of the West 164.15 feet of that part of the Northwest Quarter of the Northwest Quarter of Section 1, Township 116, Range 22 lying East of a line drawn from a point on the North line of said Northwest Quarter of the Northwest Quarter distant 282.5 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter to a point on the South line of said Northwest Quarter of the Northwest Quarter distant 282.5 feet East from the Southwest corner of said Northwest Quarter of the Northwest Quarter; EXCEPT that part of the above described land lying Northerly of the following described line: Commencing at a point on the North line of said Northwest Quarter of the Northwest Quarter distant 577.37 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter; thence South, at a right angle to said North line a distance of 40 feet to the point of beginning of the line to be described; thence Southwesterly a distance of 309.07 feet along a curve which is tangential to a line parallel with said North line and concave to the Southeast and having a radius of 369.26 feet and a central angle of 47 degrees 57 minutes 23 seconds; thence Southwesterly, tangent to said curve, a distance of 63.05 feet and there terminating. Parcel 3: That part of the following described parcel lying Northerly of a line 393.17 feet Northerly of, as measured at a right angle to the South line of the North Half of the Northwest Quarter of Section 1, Township 116, Range 22: That part of the Northwest Quarter of the Northwest Quarter of Section 1, Township 116, Range 22 described as beginning at a point on the South line of said Northwest Quarter of the Northwest Quarter distant 282.5 feet East from the Southwest corner of said Northwest Quarter of the Northwest Quarter; thence East along said South line a distance of 557.5 feet; thence North to a point on the North line of said Northwest Quarter of the Northwest Quarter distant 840 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter; thence West along said North line to a point 577.37 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter; thence South at a right angle a distance of 40 feet; thence Southwesterly a distance of 309.07 feet along a curve which is tangential to a line parallel with said North line and concave to the Southeast and has a radius of 369.26 feet and a central angle of 47 degrees 57 minutes 23 seconds; thence Southwesterly, tangent to said curve to an intersection with a line drawn North from the point of beginning to a point on the North line of said Northwest Quarter of the Northwest Quarter distant 282.5 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter; thence South along the last described line to the point of beginning; EXCEPT that part of the West 164.15 feet of the above described land lying within the North 350 feet of said Northwest Quarter of the Northwest Quarter. Parcel 4 That part of the following described parcel lying Northerly of a line 393.17 feet Northerly of, as measured at a right angle to the South line of the North Half of the Northwest Quarter of Section 1, Township 116, Range 22: A-2 4813-0374-2223\3 5/2/2012 928 AM That part of the Northwest Quarter of the Northwest Quarter of Section 1, Township 116, Range 22 described as beginning at a point on the North line of said Northwest Quarter of the Northwest Quarter distant 840 feet East from the Northwest corner of said Northwest Quarter of the Northwest Quarter; thence South to a point on the South line of said Northwest Quarter of the Northwest Quarter distant 840 feet East from the Southwest corner of said Northwest Quarter of the Northwest Quarter; thence East along said South line a distance of 30.94 feet, more or less, to the Southwest corner of the East 63 acres of the North Half of the Northwest Quarter of said Section 1; thence North along the West line of the East 63 acres of said North Half of the Northwest Quarter to the North line of said Northwest Quarter of the Northwest Quarter; thence West along said North line a distance of 88.53 feet, more or less, to the point of beginning. Parcel 5: That part of the West 20 acres of the East 63 acres of the North Half of the Northwest Quarter, Section 1, Township 116, Range 22, Hennepin County, State of Minnesota lying Southerly of the Southerly right of way line of County Road No. 62, and lying Northerly of a line 393.17 feet Northerly of, as measured at a right angle to, the South line of the North Half of the Northwest Quarter, said Section 1, according to the U.S. Government Survey thereof. (Parcels 1 through 4 are Torrens Property, Certificate of Title No. 1047852) (Parcel 5 is Abstract Property) Tract C: Outlot A, Opus II 2nd Addition, Hennepin County, Minnesota. (Torrens Property, Certificate of Title No. 1058489) A-3 4813-0374-2223\3 5/2/2012 9:28 AM EXHIBIT B [See attached.] B-1 4813-0374-2223\3 5/2/2012 9:28 AM .!•`' A • y WOW I - . 4N, PHASE THREE IMPROVEMENTS • . ..- 1 (W 62ND ST - EAST SEGMENT) ..- --.. - - , / ' ''' .- '. .t-----7::11-.:',!..-... • .i." - -• - I'- 1-• ..... . . ....., -.. ., ,...., ,.-..,...4.•.- . .:,,,,,1_ , \ ..\ -...;..., i. r'.....,..-,...:\ ,.., -..-4 y • . •,t, '1..u-'•'-...• •-,._ • -,t I ' '-' ••• : 1 '•A .. • ,, .141.:!;4 - •;-, .,. . , .;.. , re : 1 .1.! ': . -W •.•!Ri • . i',• •.r,-- '.•.5,!iihi . 4 ' l''''1,... 4 .p:fr . • .... ,. • ....m :4:4-A„.cir....:1",.1-..• '.., 1.4." .! ..,. PHASE TWO -......: PHASE ONE 4"al 9-%•ie 4',-- .„.----:7-4- w,411,+.....,- --.Ai' IMPROVEMENTS MP IROvEMENTS ,.1,`7:,•..TL.r. 1' . . $'''''AiV'. . . '. ' (CITY WEST PARKWAY - NORTH SEGMENT) .4?- ...•445±Y..4 '• "i" 4.7..."-V.' '" LSO D6Y2 R04.11 ROADAtb ero 4•,.•rt• I tVr .r,7,...1 W 62gD ST - WESY SEGMENT) , 'A - •-• .., • A. 4..... ..' ,,,,--,..;-• - .111 .t,...A. . ,...,.,_.. . -.1._. „e.,:, •i t. . ... :IA 1 y_ la . , • , ,\_.:. ce''''. ' .'!S-9,.' -.J... .,,-1 ...'. ,f.•:„ lort --i ,..,i,- ••:,?! -. ,• ').°4--°.-: 4q..,':-411)ritLir •"4t-q-- ' ' • -ti.SY-r f7fi• tg-, -:ki::io ..' .ir,?\.., .. .:',3 , ,. At. (SHADY L OSEGMENAK ROAD CENTRAT) = ;:4.---4 • . „.•_.4%-....-;,;. , i 1 i . ,r.,.,..,,,, ., ,. ..,• .1,, ,;, ,i,..••.. / . •s- k„iiii.i„:3).-411:;:l......,..„ „1. • . .,.. - . , .„, •• L: - .' ':'"...-::-:- rl .:•--' • - • Art4iiiie, 1.,1 477..i 7 .. ....,.- ' _:,,,i "444 PHASE TWO IL THREE . . - . .. " c: , it if. i . zr,./..,,, •,.. , Nikei.L.N. . .. IiVROVEMENTS \,-1•"__,""Lt"'":4, ... .......,!,...',:_..i./O.!'-.-_att, so,..,.... ...,,,...:..., ,.. ., , .t.1-1-n .- '' : ' ' ,. ....4.-T,V .„, ", • F SOU FH I NTtRSECT ION) 4,1 : r 7.r, .1.1..,:-. . • -. .`-• _•.11:/, • ' ;,-;-:' . li/ „' /IL,,-.. j - *vi. • 4,. .' . -. (HIGHWAY 212/ 4.-- SHADY OAK ROAD INTERCHANGE) (FLYING CLOUD DRIVE INTERSECTION) ....... Ell ...... p....... as ..... rat =.Z........... EXHIBIT B stvg •.... L .L.,... .....40 ,„... —-..."..... B-2 4813-0374-2223\3 5/2/2012 9:28 AM CITY COUNCIL AGENDA DATE: SECTION: Consent Calendar May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: VIII.I. Kristi Etter, IT Manager Contract with Microsoft for Component EA (Office Professional Only)through State contract Requested Action Approval of contract for renewing "Microsoft Office Professional Only" licenses through the current State of Minnesota Agreement 01 E61724. Synopsis This is a renewal for a 3-year contract, originally entered in 2004 and last renewed in May of 2010. The contract includes annual payments, price protection for the duration of the 3-year term, and Software Assurance. The total investment will be $77,067.00 for 275 PCs over three years. The payments will be split over the next three years at$25,689.00 per year. By leveraging the State contract, we also gain the following benefits: 1) Reduced administrative overhead 2) Prevention of periodic price changes 3) Increased training options 4) Upgrades as needed 5) Training vouchers for IT staff 6) Employee purchase program 7) Office Home Use Rights 8) TechNet Background Information Original contract was entered in 2004 for a six year term; it was renewed in 2010 for an additional three years. Attachment Enterprise Agreement with Microsoft SHI (vendor) quote for license cost Mic►osoftY I Volume Licensing Enterprise Enrollment State and Local Enterprise Enrollment number Proposal ID (Microsoft to complete) Earliest expiring previous Previous Enrollment number 5145541 Enrollment end date 1 04/30/13 (Reseller to complete) 1 If consolidating from multiple previous Enrollments with Software Assurance,complete the multiple previous Enrollment form and attach it to this Enrollment. Enterprise Products can only be renewed from a Qualifying Enrollment. Additional Products can be renewed from any previous Enrollment with Software Assurance. This Enrollment must be attached to a signature form to be valid. This Microsoft Enterprise Enrollment is entered into between the entities as of the effective date identified in the signature form. Customer represents and warrants that it is the same Customer, or an Affiliate of the Customer, that entered into the Enterprise Agreement identified above. This Enrollment consists of (1) this document, (2) the terms of the Enterprise Agreement identified on the signature form, and (3) any supplemental contact information form or multiple previous enrollment form that may be required. If Customer's Enterprise Agreement is a version 6.4 or earlier, the Desktop Terms and Conditions are incorporated by reference. All terms used but not defined are located at http://microsoft.com/licensing/contracts. In the event of any conflict the terms of this agreement control. Effective date. If Customer is renewing Software Assurance from one or more previous Qualifying Enrollments, then the effective date will be the day after the first Enrollment expires. Otherwise the effective date will be the date this Enrollment is accepted by Microsoft. If renewing Software Assurance, the Reseller will need to insert the previous Enrollment number and end date in the respective boxes above. Term. This Enrollment will expire 36 full calendar months from the effective date. It could be terminated earlier or renewed as provided in the Microsoft Enterprise Agreement. Microsoft will advise Customer of the renewal options before it expires. Product order. The Reseller will provide Customer with Customer's Product pricing and order. Prices and billing terms for all Products ordered will be determined by agreement between Customer and the Reseller. The Reseller will provide Microsoft with the order separately from this Enrollment. Qualifying systems Licenses. All desktop operating system Licenses provided under this program are upgrade Licenses. No full operating system Licenses are available under this program. If Customer selects the Desktop Platform or the Windows Desktop Operating System Upgrade & Software Assurance, all Qualified Desktops on which the Windows Desktop Operating System Upgrade must be licensed to run one of the qualifying operating systems identified in the Product List at http://microsoft.com/licensing/contracts. Note that the list of operating systems that qualify for the Windows Desktop Operating System Upgrade varies with the circumstances of the order. That list is more extensive at the time of the initial order than it is for some subsequent true-ups and system refreshes during the term of this Enrollment. For example, Windows XP Home Edition or successor Products are not qualifying operating systems. EA2009EnrGov(AOC)(US)SLG(ENG)(Jul2010) Page 1 of 4 Document X20-01112 1. Contact information. Each party will notify the other in writing if any of the information in the following contact information page(s) changes. The asterisks (*) indicate required fields. By providing contact information, Customer consents to its use for purposes of administering this Enrollment by Microsoft, its Affiliates, and other parties that help administer this Enrollment. The personal information provided in connection with this Enrollment will be used and protected in accordance with the privacy statement available at http://licensing.microsoft.com. a. Primary contact information: The Customer of this Enrollment must identify an individual from inside its organization to serve as the primary contact. This contact is the default administrator for this Enrollment and receives all notices unless Microsoft is provided written notice of a change. The administrator may appoint other administrators and grant others access to online information. Name of entity(must be legal entity name)* City of Eden Prairie Contact name* First Mike Last Hutter Contact email address* MHutter@edenprairie.org Street address* 8080 Mitchell Road City* Eden Prairie State* MN Postal code* 55344 Country* USA Phone* 952-949-8520 Fax Tax ID (if applicable) b. Notices and online administrator: This individual receives online administrator permissions and thus may grant online access to others. This contact also receives all notices. ® Same as primary contact Name of entity(must be legal entity name)* Contact name* First Last Contact email address* Street address* City* State* Postal code* Country* Phone* Fax ❑ This contact is a third party (not the Customer). Warning: This contact receives personally identifiable information of the Customer. c. Language preference: Select the language for notices. English d. Microsoft account manager: Provide the Microsoft account manager contact for this Customer. Microsoft account manager name: Microsoft account manager email address: e. If Customer requires a separate contact for any of the following, attach the Supplemental Contact Information form. Otherwise, the notices contact remains the default. • Additional notices contact • Software Assurance manager • Subscription manager • Online Services manager • Customer Support Manager(CSM)contact f. Is a purchase under this Enrollment being financed through MS Financing? ❑ Yes, ® No. EA2009EnrGov(AOC)(US)SLG(ENG)(JuI2010) Page 2 of 4 Document X20-01112 g. Reseller information Reseller company name*SHI International Corp Street address (PO boxes will not be accepted)*290 Davidson Ave City* Somerset State* NJ Postal code*08873 Country* USA Contact name* Phone*888-764-8888 Fax 888-764-8889 Contact email address* MSTeam@SHl.com The undersigned confirms that the information is correct. Name of Reseller* SHI International Corp Signature* Printed name* Printed title* Licensing Specialist Date* Changing a Reseller. If Microsoft or the Reseller chooses to discontinue doing business with one another, Customer must choose a replacement. If Customer intends to change the Reseller, it must notify Microsoft and the former Reseller, in writing on a form provided at least 90 days prior to the date on which the change is to take effect. The change will take effect 90 days from the date of Customer's signature. 2. Defining your Enterprise. Use this section to identify which Affiliates are included in the Enterprise. Customer's Enterprise must consist of entire government agencies, departments or legal jurisdictions, not partial government agencies, departments, or legal jurisdictions. (Check only one box in this section.) ® Only you (and no other affiliates) will be participating ❑ Customer and all Affiliates are included (excluding new Affiliates with which you consolidate in the future) ❑ The following Affiliates are excluded 3. Establishing Customer price level. The price level indicated in this section will be the price level for the initial Enrollment term for all Enterprise Products ordered and for any Additional Products in the same pool(s). The price level for any other Additional Products will be level "D". Qualified Desktops: Customer represents that the total number of Qualified Desktops in its Enterprise is, or will be increased to, this number during the initial 275 term of this Enrollment(This number must be equal to at least 250 desktops). EA2009EnrGov(AOC)(US)SLG(ENG)(JuI2010) Page 3 of 4 Document X20-01112 Qualified Users: Customer represents that the total number of Qualified Users in its Enterprise is, or will be increased to, this number during the initial term of this 275 Enrollment (This number must be equal to at least 250 users). Number of I Qualified Qualified desktops/ users Price level Price level (for pools in which Desktop User Customer orders an Enterprise 250 to 2,399 A Product): D D 2,400 to 5,999 B 6,000 to 14,999 C Price level (for pools in which Customer does not order an Price level "D" 15,000 and above D Enterprise Product). 4. Enterprise Product orders. Customer must select a desktop platform or any individual Enterprise Product before it can order Additional Products. The CAL selection must be the same across the Enterprise. The components of the current versions of any Enterprise Product are identified in the Product List. Enterprise Product Selection Please choose the Enrolled Affiliate's desktop option (Select 1): ❑ Enterprise Desktop with MDOP ❑ Enterprise Desktop ❑ Professional Desktop with MDOP ❑ Professional Desktop ❑ Custom Desktop or Individual Enterprise Product Component(s): Select at least 1 component. (For full platform, Windows Desktop, Office, and Client Access License components must all be selected.) ❑ Windows Desktop (Includes Windows Desktop Operating System Upgrade and Windows VDA): <Select One> ® Office: Office Professional Plus ❑ Client Access License: <Select One> For any Client Access Licenses, please indicate whether licensing by Desktop or User: <Select One> Unless stated/indicated otherwise, Microsoft will invoice Customer's Reseller in 3 equal annual installments. The first installment will be invoiced upon Microsoft's acceptance of this Enrollment and thereafter on the anniversary of the Enrollment. All subsequent new Additional Products and true-ups are billed in full. EA2009EnrGov(AOC)(US)SLG(ENG)(JuI2010) Page 4 of 4 Document X20-01112 it) Microsoft Enterprise Agreement - Government Pricing Quote To: City of Eden Prairie Year 1 Enterprise Products Qty (Part Number Description Desktop Price Extended Price 267 269-05704 Office Pro Plus-SA Only $ 91.00 $ 24,297.00 8 269-05623 Office Pro Plus- L&SA $ 174.00 $ 1,392.00 Total Cost Year 1 $ 25,689.00 Year 2 Enterprise Products Qty Part Number Description Desktop Price Extended Price 267 269-05704 Office Pro Plus-SA Only $ 91.00 $ 24,297.00 8 269-05623 Office Pro Plus- L&SA $ 174.00 $ 1,392.00 Total Cost Year 2 $ 25,689.00 Year 3 Enterprise Products Qty Part Number Description Desktop Price Extended Price 267 269-05704 Office Pro Plus-SA Only $ 91.00 $ 24,297.00 8 269-05623 Office Pro Plus- L&SA $ 174.00 $ 1,392.00 I Total Cost Year 3 $ 25,689.00 Total Cost Year 1 $ 25,689.00 Total Cost Year 2 $ 25,689.00 Total Cost Year 3 $ 25,689.00 Total Year EA Cost $ 77,067.00 I Date Quoted: April 9, 2013 CITY COUNCIL AGENDA DATE: SECTION: Consent Agenda May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: LC. 12-5815 ITEM NO.: VIII.J. Leslie Stovring Approve Standard Agreement for Contract Public Works/Environmental Services with Volt for Conducting Watercraft Inspections Requested Action Move to: Award contract for watercraft inspections at four lakes within the City to Volt Workforce Solutions for a not to exceed cost of$36,217. Synopsis Riley-Purgatory-Bluff Creek Watershed District(RPBCWD)has requested that the City of Eden Prairie establish a municipal aquatic invasive species inspection program. To aid in this effort, the District voted to allocate $50,000 to the Cities of Eden Prairie and Chanhassen to supplement the funds already set aside by the cities for 2013. The City of Eden Prairie would receive half of this amount. Volt Workforce Solutions (Volt)was contacted to provide an estimate to conduct inspections at lakes within the District as they have previous experience in providing this type of service. The costs above the grant will be paid by the Parks Department in lieu of hiring a parking attendant and through a grant received from the Minnesota Dept. of Natural Resources. Background Information On April 16, 2013,RPBCWD sent a letter acknowledging the City's efforts in continuing an aquatic invasive species (AIS)program. The grant will be used for inspections at lakes with public motorboat access (Riley,Mitchell, Red Rock and Round). It is their hope that implementation of the inspection program will help in stopping the spread of invasive species such as zebra mussels. Volt was selected to help establish a watercraft inspection program as they have experience with Minnehaha Creek Watershed District and the Lake Minnetonka Conservation District. The attached contract is for monitoring from Memorial Day weekend through the middle of September. The City will also hire two interns to supplement the inspection hours and work with the District on weed harvesting. Internship hours would be paid out of the City's water quality education program and stormwater utility. Attachments • Contract from Volt Workforce Solutions • RPBCWD Letter of Support Standard Agreement for Contract Services This Agreement ("Agreement") is made on the 30 day of 4.7r► 1 ,2013 , between the City of Eden Prairie, Minnesota (hereinafter "City"), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and vo(k MANI e,wt.[",-i CO r 9 CIrs 4.' a Milliieseta elav7ar� Cow (hereinafter"Contractor" hose business address is ALt01 N.6(ct.55e.1,1 ra e- C v° a a.3 to Preliminary Statement The City has adopted a policy regarding the selection and hiring of contractors to provide a variety of services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of services by Contractor for hereinafter referred to as the "Work". The City and Contractor agree as follows: 1. Scope of Work. The Contractor agrees to provide,perform and complete all the provisions of the Work in accordance with attached Exhibit A. The terms of this Agreement shall take precedence over any provisions of the Contractor's proposal and/or general conditions. 2. Effective Date and Term of Agreement. This Agreement shall become effective as of rr . (c f ,20 13. The Work shall be completed by 5—'f L6 ,200 . 3. Obligations of Contractor. Contractor shall conform to the following obligations: a. Contractor shall provide the materials and services as set forth in Exhibit A. b. Contractor and its employees will park in service areas or lots and use entries and exits as designated by City. Contractor's personnel will contact the appropriate person (i.e. receptionist, maintenance personnel, security, etc,) immediately upon entering the building, and will sign.in and out if required by City. c. Care, coordination and communication by Contractor is imperative so that guests and employees in the buildings are not disturbed or inconvenienced during the performance of the contracted services. d. Contractor's personnel must be neat appearing, wear a uniform and badge that clearly identifies them as a service contractor, and abide by City's no smoking policies. e. Contractor must honor the City's request to reassign an employee for cause. Cause may include performance below acceptable standards or failure to present the necessary image or attitude, in the judgment of the owner, to present a first class operation. f. When necessary, Contractor's personnel will be provided with keys or access cards in order to perform their work. Any lost keys or cards that result in rekeying a space or other cost to the City will be billed back to the Contractor. 4. City's Obligations. City will do or provide to Contractor the following: a. Provide access to City properties as appropriate. b. Provide restroom facilities as appropriate. 5. Comvensation for Services.. City agrees to pay the.Contractor.an hourly,not to exceed sum of$ Y.p14.11.00 , as full and complete payment for the labor, materials and services rendered pursuant to this Agreement and as described in Exhibit A. a. Any changes in the scope• of the work which may result in an increase to the compensation due the Contractor shall require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. b. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by a period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. 6. Method of Payment. a. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices • setting forth work performed under this Contract. Invoices submitted shall be paid in the same manner as other claims made to the.City. b. Claims. To receive any payment on this Contract,the invoice or bill must include the following signed and dated statement: "I declare under penalty of perjury that this account, claim, or demand is just and correct and that no part of it has been paid" c. No fuel surcharges or surcharges of any kind will be accepted nor will they be paid. 7. Project Manager. The Contractor has designated fl €r' GYx&✓1,x to Manage the Work. They shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Contractor may not remove or replace the designated manager without the approval of the City. 8. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Contractor's breach of this standard of care. Contractor shall put forth reasonable efforts to complete its duties in a timely manner. Contractor shall not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Contract. Contractor shall be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 9. Insurance. a. General Liability. Prior to starting the Work, Contractor shall procure, maintain and pay for such insurance as will protect against claims or loss which may arise out of operations by Contractor or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance shall include, but not be limited to, minimum coverages and limits of liability specified in this Paragraph, or required by law. The policy(ies) shall name the City as an additional insured for the services provided under this Agreement and shall provide that the Contractor's coverage shall be primary and noncontributory in the event of a loss. b. Contractor shall procure and maintain the following minimum insurance coverages and limits of liability for the Work: Worker's Compensation Statutory Limits Employer's Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Comprehensive Liability $1,500,000 property damage per occurrence $2,000,000 general aggregate $2,000,000 Products—Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit(shall include coverage for all owned,hired and non-owed vehicles. Umbrella or Excess Liability $1,000,000 c. The Comprehensive General/Commercial General Liability policy(ies) shall be equivalent in coverage to ISO form CG 0001, and shall include the following:. i. Premises and Operations coverage with no explosions,collapse,or underground damage exclusion(XCU). i . ii. Products and Completed Operations Property Damage coverage. Contractor agrees to maintain this coverage for a minimum of two (2) years following completion of its work. iii. Personal injury with Employment Exclusion(if any)deleted. iv. Broad Form CG0001 0196 Contractual Liability coverage,or its equivalent. v. Broad Form Property Damage coverage, including completed operations, or its equivalent. vi. Additional Insured.Endorsement(s) on ISO form CG 2010, or its equivalent, naming "the City of Eden Prairie." The additional insured form needs to extend protection for"product and completed operations". ` vii.If the Work to be performed is on an attached community, there shall be no exclusion for attached or condominium projects. viii. "Stop gap" coverage for_ work in those states where Workers' Compensation insurance.is provided through a state fund if Employer's liability coverage is not available. ix. Incidental Malpractice and Host Liquor Liability insurance applicable to the j Contractor's performance under this Contract'. x. Severability of Insureds provision. i d. Contractor shall maintain in effect all insurance coverages required under this Paragraph at Contractor's sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. In addition to the requirements stated above, the following applies to the insurance policies required under this Paragraph: i. All polices shall be written on an "occurrence" form ("claims made" and "modified occurrence"forms are not acceptable); ii. All polices shall be apply on a"per project"basis; iii. All policies, except the Worker's Compensation Policy, shall contain a waiver of subrogation naming"the City of Eden Prairie"; iv. All policies, except the Worker's Compensation Policiy, shall name "the City of Eden Prairie" as an additional insured; v. All policies, except the Worker's Compensation Policy, shall insure the defense and indemnity obligations assumed by Contractor under this Contract; and vi. All polices shall contain a provision that coverages afforded there under shall not be canceled or non-renewed or restrictive modifications added, without thirty(30)days prior written notice to the City. e. A copy of the Contractor's Certificate of Insurance which evidences the compliance with this Paragraph, must be filed with City prior to the start of Contractor's Work. Upon request a copy of the Contractor's insurance declaration page, Rider and/or Endorsement, as applicable shall be provided. Such documents evidencing Insurance shall be in a form acceptable to City and shall provide • satisfactory evidence that Contractor has complied with all insurance requirements. Renewal certificates shall be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance, declaration page, Rider, Endorsement or certificates or other evidence • of insurance, or to advise Contractor of any deficiencies in such documents and receipt thereof shall not relieve Contractor from, nor be deemed a waiver of, City's right to enforce the terms .of Contractor's obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. f. Effect of Contractor's Failure to Provide Insurance. If Contractor fails to provide the specified insurance,then Contractor will defend, indemnify and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability and expense (including reasonable attorney's fees and expenses of litigation)to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City(including sole negligence)and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Contractor, its subcontractors, agents, employees or delegates. Contractor agrees that this indemnity shall be construed and applied in favor of indemnification. Contractor also agrees that if applicable law limits or precludes any aspect of this indemnity, then • the indemnity will be considered limited only to the extent necessary to comply with • that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. . If a claim arises within the scope of the stated indemnity, the City may require Contractor to: i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation;or ii. Furnish a written acceptance of tender of defense and indemnity from Contractor's insurance company. Contractor will take the action required by the City within fifteen(15)days of receiving notice from the City. 3 � 10. Indemnification. Contractor will indemnify City and hold it harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney's fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor or any negligent or intentional act or omission performed,taken or not performed or taken by Contractor, its agents, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its agents or employees. 11. Termination. a. This Agreement may be terminated at any time by either party for breach or non- performance of any provision of this Agreement in accordance with the following. The party ("notifying party") who desires to terminate this Agreement for breach or non-performance of the other party ("notified party") shall give the notified party notice in writing of the notifying party's desire to terminate this Agreement describing the breach or non-performance of this Agreement entitling it to do so. The notified party shall have five (5) days from the date of such notice to cure the breach or non-performance. Upon failure of the notified party to do so, this Agreement shall automatically terminate. b. Upon the termination of this Agreement, whether by expiration of the original or any extended term or terms hereof, or for any other reason, Contractor shall have the right, within a reasonable time after such termination to remove from City's premises any and all of Contractor's equipment and other property. Except for liability resulting from acts or omissions of a party, arising, taken or omitted prior to such termination, the rights and obligations of each party resulting from this Agreement shall cease upon such termination. Any prior liability of a party shall survive termination of this Agreement. c. In the event of dissolution, termination of existence, insolvency, appointment of a receiver, assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency law, or the service of any warrant, attachment, levy or similar process involving Contractor, City may, at its option in addition to any other remedy to which City may be entitled, immediately terminate this Agreement by notice to Contractor, in which event, this Agreement shall terminate on the notice becoming effective. 7 . 12. Notice. Required notices to the Contractor shall be in writing, and shall be either hand- delivered to the Contractor, its employees or agents, or mailed to the Contractor by certified mail at the following address: fahte . Comes ►� _ ( Y�f;L,. [)r o-c C.onkrc Aral\ e�CAQp tp5 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: Leslie A. Stovring,Environmental Coordinator City of Eden Prairie 8080 Mitchell Road Eden Prairie,MN 55344 Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 13.Independent Contractor. Contractor is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it shall deem necessary and appropriate for the performance of its obligations pursuant to this • Agreement,who shall be employees, and under the direction, of Contractor and in no respect employees of City, and (ii) shall have no authority to employ persons, or make purchases of equipment on behalf of City,or otherwise bind or obligate City. No statement herein shall be construed so as to find the Contractor an employee of the City. 14.Assignment. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 15.Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. The books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. The Contractor 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 Contractor. • 16.Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicant for employment because of race, color,creed, religion,national origin, sex,marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Contractor shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in ail subcontracts for program work. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 17.Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the agreement void. Any federal regulations and applicable state statutes shall not be violated. 18. Employees. Contractor agrees not to hire any employee or former employee of City and City agrees not to hire any employee or former employee of Contractor prior to termination of this Agreement and for one (1)year thereafter,without prior written consent of the former employer in each case. 19.Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations,rights and remedies otherwise imposed or available by law. 20.Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 21.Enforcement. The Contractor shall reimburse the City for ail costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 22. Mediation. Each dispute, claim or controversy arising from or related to this agreement shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance with the Commercial Mediation Procedures of the American Arbitration Association then currently in effect. A request for mediation shall be filed in writing with the American Arbitration Association and the other party. No arbitration or legal or equitable i 1 action may be instituted for a period of 90 days from the filing of the request for mediation unless a longer period of time is provided by agreement of the parties. Cost of mediation shall be shared equally between the parties. Mediation shall be held in the city of one of the Voting Members unless another location is mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from the mediation in a mediated settlement agreement, which agreement shall be enforceable as a settlement in any court having jurisdiction thereof. 23. Governing Law. This Agreement shall be controlled by the Iaws of the State of Minnesota. 24. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 25. Waiver. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 26.Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly i signed by the parties,unless otherwise provided herein. Executed as of the day and year first written above. CITY OF EDEN PRAIRIE - Mq ov Di'v .tut vfr'abli..WOLk C�41 MgC/tq q a.— CONTRACTOR \/0 QhaO Gw•evti- - Cp r"P • By 6 /3 1 5 p. Ca ws,ero r% Its: P r [ EXHIBIT A SCOPE OF WORK PROVISIONS 1. Rates.The City will pay Contractor the following rates for the following position: Job Classification Hourly Rate Watercraft Inspector $15.75-t tContractor shall be entitled to bill City for any overtime hours worked by multiplying the appropriate rate by 1.5. Any overtime hours anticipated will require the City's approval. 2 Planning Meetings. In accordance with the Department of Natural Resources (DNR), City and Contractor will conduct regular meetings, every other week, to perform a performance status update and schedule meetings for the following two (2) weeks. Riley District Office Purgatory 8080 Mitchell Road Bluff Creek Eden Prairie, MN 55344 Tel: (952)294-5976 Watershed District www.rileywd.org Tuesday, April 16, 2013 Dear Mrs Stovring, I am writing you to let you know that the District allocated $14,000 for curlyleaf pondweed harvesting in Mitchell Lake and $14,000 for curlyleaf pondweed harvesting in Red Rock Lake with the understanding that the City of Eden Prairie would coordinate the effort. In addition, the District has allocated $25,000 to the City of Eden Prairie for Aquatic Invasive Species prevention. All three of these projects will require upon completion a final report. The District is looking forward to continuing our partnership with the City of Eden Prairie to protect, restore and manage the water resources in the Riley-Purgatory-Bluff Creek Watershed District. Sincerely, Claire Bleser Claire Bleser District Administrator Riley Purgatory Bluff Creek Watershed District 8080 Mitchell Rd Eden Prairie, MN 55344 Tel: (952)294-5976 http://www.rilpywd.org/ Board of Managers Mary Bisek Michael Casanova Jill Crafton Perry Forster Kenneth Wencl Minnetonka Eden Prairie Bloomington Eden Prairie Chanhassen C. 100%post-consumer fiber—no new trees,and processed chlorine-free with 100%renewable energy CITY COUNCIL AGENDA DATE: SECTION: Public Hearing May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO: IX.A. Office of City Manager Resolution Approving Issuance by the City of Sue Kotchevar, Finance Deephaven, Minnesota, of its Charter School Manager Lease Revenue Bonds, Series 2013A and Series 2013B (Eagle Ridge Academy Project) Requested Action Move to: • Close the public hearing; and • Adopt resolution approving the issuance by the City of Deephaven, Minnesota of its Charter School Lease Revenue Bonds, Series 2013A and Series 2013B (Eagle Ridge Academy Project) Synopsis The City of Deephaven plans to issue bonds for the purpose of financing the approximately $9,500,000 of project costs on behalf of Eagle Ridge Academy Affiliated Building Company. The project will consist of the acquisition, improvement,betterment or extension of approximately 77,848 square foot charter school facility located at 7255 Flying Cloud Drive, Eden Prairie. Background Because the project is located in Eden Prairie, federal regulations require the City hold a public hearing to give parties an opportunity to express their views. The City of Eden Prairie did not issue the bonds because of planned debt issuance for the year which would affect the City's ability to maintain bank qualified bonds and a lower interest rate. Attachment Resolution Certificate of ERA and ERAABC CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2013- _ RESOLUTION APPROVING THE ISSUANCE BY THE CITY OF DEEPHAVEN, MINNESOTA OF ITS CHARTER SCHOOL LEASE REVENUE BONDS, SERIES 2013A AND SERIES 2013B (EAGLE RIDGE ACADEMY PROJECT) BE IT RESOLVED by the City C ouncil (the "Council") of th e City of Eden Prairie, Minnesota(the "City"), as follows: Section 1. Recital. This Council has received notice that the City of Deephaven, Minnesota(the "Issuer") intends to issue revenue bonds for the purpose of financing the cost of a proposed project located within the City(the "Project") on behalf of Eagle Ridge Academy Affiliated Building Company, a Minnesota nonprofit corporation(the "Corporation"), consisting of the acquisition and renovation of a school facility, to be owned by the Corporation and leased to and operated by Eagle Ridge Academy, a public charter school sponsored by Friends of Education (the "Academy"). Section 2. Findings. At a public hearing, duly noticed and held on the date hereof, in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, on the proposal to approve the financing of the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing. Based on the public hearing, such written comments (if any) and such other facts and circumstances, as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The Issuer intends to issue revenue bonds on behalf of the Corporation for a public education facility. Based on the representations of the Corporation and the Academy, the Project will consist of the acquisition, construction, reconstruction, improvement,betterment or extension of an approximately 77,548 square foot charter school facility. (b) The maximum aggregate face amount of the obligations to be issued with respect to the Project is $9,500,000. (c) The Project will be owned by the Corporation and will be leased to and operated by the Academy. (d) The Project will be located at 7255 Flying Cloud Drive in the City. Section 3. Approval. The City hereby approves the issuance of bonds by the City of Deephaven, Minnesota to finance the Project. ADOPTED by the City Council of the City of Eden Prairie this 21st day of May, 2013. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk 2 CERTIFICATE OF EAGLE RIDGE ACADEMY AND EAGLE RIDGE ACADEMY AFFILIATED BUILDING COMPANY The undersigned hereby certify that we are the duly appointed, qualified and acting Executive Director of Eagle Ridge Academy (the "Academy"), a Minnesota nonprofit corporation and public charter school, and President, of Eagle Ridge Academy Affiliated Building Company (the "Corporation"), a Minnesota nonprofit corporation. The Academy and the Corporation have requested that the City of Deephaven, Minnesota (the "Issuer") issue its approximately $8,950,000 Charter School Lease Revenue Bonds (Eagle Ridge Academy Project), Series 2013A, and $225,000 Taxable Charter School Lease Revenue Bonds (Eagle Ridge Academy Project), Series 2013B (collectively, the `Bonds"), in order to (i) finance the acquisition, construction, reconstruction, improvement, betterment, or extension of an approximately 77,548 square foot school facility located at 7255 Flying Cloud Drive in Eden Prairie, Minnesota (the "Project") to be owned by the Corporation and leased to the Academy; (ii) fund a Reserve Fund for the Bonds; (iii) pay capitalized interest on the Bonds; and (iv) pay the costs of issuing the Bonds. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, the City of Eden Prairie, Minnesota (the "City") is required to approve the issuance of the Bonds by the Issuer to finance the Project. In connection with such approval by the City, we hereby certify as follows: 1. We have been given the opportunity to review the Resolution to be adopted by the City at its City Council meeting to be held on May 21, 2013, attached hereto as Exhibit A, and certify that all the findings and facts contained therein are true and correct. 2. The Project will consist of the acquisition, construction, reconstruction, improvement, betterment or extension of an approximately 77,548 square foot charter school facility. 3. The maximum aggregate face amount of the obligations to be issued with respect to the Project is $9,500,000. 4. The Project will be owned by the Corporation and will be leased to and operated by the Academy. 5. The Project will be located at 7255 Flying Cloud Drive in the City. Dated: May 14, 2013. EAGLE RIDGE ACADEMY By: ! Its: xecutive Director EAGLE RIDGE ACADEMY AFFILIATED BUILDING,,C,OMPANY By: Gfts: re CITY COUNCIL AGENDA DATE: SECTION: Payment of Claims May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: X. Sue Kotchevar, Office of the Payment of Claims City Manager/Finance Requested Action Move to: Approve the Payment of Claims as submitted (roll call vote) Synopsis Checks 225756 —225982 Wire Transfers 1003579 - 1003704 Wire Transfers 4732 4743 March Purchasing Card Report City of Eden Prairie Council Check Summary 5/21/2013 Division Amount Division Amount General 87,054 803 Escrow Fund 5,619 100 City Manager 675 806 SAC Agency Fund 70,615 101 Legislative 12,530 807 Benefits Fund 370,106 110 City Clerk 21 809 Investment Fund 1,238 111 Customer Service 1,622 810 Workers Comp Insurance 15,099 112 Human Resources 92 811 Property Insurance 2,647 113 Communications 39 812 Fleet Internal Service 171,204 114 Benefits&Training 24,200 813 IT Internal Service 92,088 130 Assessing 7,807 814 Facilities Capital ISF 210,509 131 Finance 25 815 Facilites Operating ISF 25,820 132 Housing and Community Services 17,250 816 Facilites City Center ISF 57,992 133 Planning 466 817 Facilites Comm.Center ISF 32,573 137 Economic Development 10 Total Internal Service Funds 1,055,510 138 Community Development Admin. 60 151 Park Maintenance 24,232 Report Totals 1,985,728 152 Parks Capital Outlay 4,677 154 Community Center 5,045 156 Youth Programs 2,223 157 Special Events 580 158 Senior Center 624 159 Recreation Administration 41 162 Arts 1,873 163 Outdoor Center 848 164 Park Rental Facilities 84 167 CC-Youth Programs 823 168 Arts Center 176 180 Police 22,160 184 Fire 35,043 200 Engineering 158 201 Street Maintenance 6,575 Total General Funds 257,016 301 CDBG 1,347 303 Cemetary Operation 350 308 E-911 2,163 317 Eden Prairie Players 71 Total Special Revenue Funds 3,931 522 Improvement Projects 2006 6,575 Total Capital Project Funds 6,575 601 Prairie Village Liquor 106,003 602 Den Road Liquor 192,577 603 Prairie View Liquor 118,779 605 Den Road Building 883 701 Water Fund 109,666 702 Sewer Fund 37,726 703 Storm Drainage Fund 97,064 Total Enterprise Funds 662,697 City of Eden Prairie Council Check Register 5/21/2013 Check# Amount Vendor/Explanation Account Description Business Unit Explanation 4737 208,997 CERIDIAN State Taxes Withheld Health and Benefits Taxes Withheld 225873 169,195 COMMERCIAL REFRIGERATION SYSTE Other Contracted Services Facilities Capital Ice Rinks 1 &2 4740 135,110 PUBLIC EMPLOYEES RETIREMENT AS PERA Health and Benefits PERA 4741 100,823 MINNESOTA DEPT OF REVENUE Cash Over/Short General Fund Sales&Use Tax 225867 87,445 CARL BOLANDER&SONS Improvement Contracts Storm Drainage 225902 72,459 JOHNSON BROTHERS LIQUOR CO Transportation Prairie View Liquor Store 225915 69,909 METROPOLITAN COUNCIL Due to Other Governments SAC Agency Fund 1003675 69,149 LOGIS Network Support IT Operating 225946 52,750 SIEMENS INDUSTRY INC Equipment Repair&Maint Water Treatment Plant 225923 52,040 NELSON AUTO CENTER,INC Autos Fleet Operating 225972 44,010 WIRTZ BEVERAGE MINNESOTA Liquor Prairie Village Liquor Store 225939 37,458 RANGER Autos Police 225948 34,035 SOUTHERN WINE&SPIRITS OF MN Transportation Prairie Village Liquor Store 1003674 25,986 LEGACY SERVICES CORP Insurance Claims Sewer Utility-General 225822 25,001 SHORT ELLIOTT HENDRICKSON INC Design&Engineering Sewer System Maintenance 1003703 24,850 YOCUM OIL COMPANY INC Motor Fuels Fleet Operating 225788 22,222 JOHNSON BROTHERS LIQUOR CO Transportation Den Road Liquor Store 225804 22,204 MINNESOTA UI FUND Unemployment Compensation Organizational Services 1003654 21,251 DIVERSE BUILDING MAINTENANCE Janitor Service Park Shelters 4739 21,179 1NG Deferred Compensation General Fund 225861 21,142 BECKER ARENA PRODUCTS INC Other Contracted Services Facilities Capital 1003593 20,822 EMERGENCY APPARATUS MAINTENANC Equipment Repair&Maint Fire 225774 19,427 FLEET MAINTENANCE INC Equipment Parts Fleet Operating 1003620 19,404 SRF CONSULTING GROUP INC Improvement Contracts Shady Oak Road/CR 61 NORTH 225759 18,026 ABM JANITORIALSERVICES-NORTH C Janitor Service City Hall-CAM 225932 16,039 PHILLIPS WINE AND SPIRITS INC Wine Domestic Prairie View Liquor Store 225823 15,848 SOUTH METRO PUBLIC SAFETY TRAI Other Contracted Services Public Safety Training Facilit 4738 15,501 ICMA RETIREMENT TRUST-457 Deferred Compensation General Fund 225908 15,099 LEAGUE OF MINNESOTA CITIES Workers Comp Insurance Workers Comp Insurance 1003600 14,526 HANSEN THORP PELLINEN OLSON Design&Engineering Improvement Projects 2006 1003694 13,837 THORPE DISTRIBUTING Beer Prairie View Liquor Store 1003687 13,389 RENDERS INC Chemicals Park Maintenance 225842 12,776 WIRTZ BEVERAGE MINNESOTA BEER Beer Prairie View Liquor Store 225876 12,500 DECISION RESOURCES LTD Other Contracted Services City Council 4732 12,215 GENESIS EMPLOYEE BENEFITS,INC HRA Health and Benefits 225854 11,805 ARENA SOLUTIONS INC Other Contracted Services Facilities Capital 225841 11,515 WIRTZ BEVERAGE MINNESOTA Liquor Prairie View Liquor Store 225973 9,953 WIRTZ BEVERAGE MINNESOTA BEER Beer Prairie View Liquor Store 225937 9,729 PROGRESSIVE CONSULTING ENGINEE Design&Engineering Water Capital 225925 9,693 NORTHERN AIR CORPORATION Contract Svcs-HVAC Fitness/Conference-Cmty Ctr 225907 9,532 LAVAN FLOOR COVERING Contract Svcs-General Bldg Fitness/Conference-Cmty Ctr 1003622 9,516 THORPE DISTRIBUTING Misc Non-Taxable Prairie Village Liquor Store 225979 9,167 LIFE INSURANCE COMPANY OF NORT Life Insurance EE/ER Health and Benefits 225825 9,107 SOUTHERN WINE&SPIRITS OF MN Transportation Prairie Village Liquor Store 225891 9,099 HEINEMAN PAINTING INC Building Repair&Maint. Water Treatment Plant 225900 8,420 JJ TAYLOR DISTRIBUTING MINNESO Transportation Prairie Village Liquor Store 1003608 8,188 LOGIS LOGIS IT Operating Check# Amount Vendor/Explanation Account Description Business Unit Explanation 225786 8,096 JJ TAYLOR DISTRIBUTING MINNESO Transportation Prairie Village Liquor Store 1003683 7,710 PRAIRIE ELECTRIC COMPANY Contract Svcs-Electrical Park Shelters 1003690 7,500 SENIOR COMMUNITY SERVICES Other Contracted Services Housing and Community Service 225888 7,337 GRAYMONT Treatment Chemicals Water Treatment Plant 1003673 6,454 LAWN RANGER,INC,THE Contract Svcs-Snow Removal Fire Station#1 225812 6,405 PHILLIPS WINE AND SPIRITS INC Transportation Prairie Village Liquor Store 1003616 6,400 PRAIRIE ELECTRIC COMPANY Contract Svcs-Electrical Police City Center 225824 6,250 SOUTHDALE YMCA YOUTH DEVELOPME Other Contracted Services Housing and Community Service 1003702 6,107 WINE COMPANY,THE Wine Domestic Den Road Liquor Store 1003698 5,861 VINOCOPIA Transportation Prairie Village Liquor Store 1003678 5,768 MENARDS Small Tools Facilities Staff 225914 5,738 MATSON,TOM Small Tools Fleet Operating 1003590 5,662 DAY DISTRIBUTING Beer Prairie Village Liquor Store 225930 5,366 PAUSTIS&SONS COMPANY Transportation Prairie Village Liquor Store 1003652 5,316 DAY DISTRIBUTING Beer Den Road Liquor Store 225763 5,017 BAUER BUILT TIRE AND BATTERY Tires Fleet Operating 1003646 4,897 CERIDIAN Ceridian IT Operating 225977 4,848 COSTCO Operating Supplies Tennis 225855 4,700 BADGER STATE INSPECTION LLC Deposits Escrow 225772 4,683 EARL F ANDERSEN INC Signs Traffic Signs 225849 4,579 ADVANCED PUBLIC SAFETY INC Software Maintenance IT Operating 225816 4,136 RECON ROBOTICS Capital Under$25,000 Police 225942 4,090 RETROFIT RECYCLING INC Supplies-Electrical City Hall-CAM 1003580 4,031 A TO Z RENTAL CENTER Repair&Maint.Supplies Fire 1003586 3,920 CERIDIAN Ceridian IT Operating 1003624 3,800 VAN PAPER COMPANY Cleaning Supplies City Hall-CAM 225777 3,697 GRAYMONT Treatment Chemicals Water Treatment Plant 1003601 3,542 HAWKINS INC Treatment Chemicals Water Treatment Plant 225896 3,500 IND SCHOOL DISTRICT 272 Other Contracted Services Housing and Community Service 225935 3,488 PIONEER MANUFACTURING COMPANY Operating Supplies Park Maintenance 225971 3,482 WINE MERCHANTS INC Transportation Prairie Village Liquor Store 225845 3,443 RICHFIELD,CITY OF Autos Police 1003632 3,421 A TO Z RENTAL CENTER Repair&Maint.Supplies Fire 225893 3,341 HENNEPIN COUNTY ACCOUNTS RECEI Board of Prisoner Police 225783 3,325 HOHENSTEINS INC Beer Prairie View Liquor Store 1003645 3,088 CENTURYLINK Telephone IT Telephone 225843 3,024 YALE MECHANICAL INC Building Repair&Maint. Water Treatment Plant 225827 2,998 ST CROIX ENVIRONMENTAL INC OCS-Well Field Mgmt Water Treatment Plant 225787 2,916 JOHN DEERE LANDSCAPES/LESCO Repair&Maint.Supplies Round Lake 1003634 2,717 A-SCAPE INC Contract Svcs-Snow Removal Fire Station#5 1003697 2,678 VAN PAPER COMPANY Cleaning Supplies Park Shelters 225840 2,667 WINE MERCHANTS INC Transportation Prairie Village Liquor Store 225966 2,647 VIGIL,KELLY Insurance Property Insurance 225879 2,604 DPC INDUSTRIES INC Treatment Chemicals Water Treatment Plant 225844 2,495 RICHFIELD,CITY OF Autos Police 1003644 2,488 CENTERPOINT ENERGY Gas Forest Hills Park 225901 2,408 JOHN DEERE LANDSCAPES/LESCO Operating Supplies Park Maintenance 225952 2,294 SURLY BREWING CO Beer Prairie Village Liquor Store 225779 2,275 HENNEPIN COUNTY MEDICAL CENTER Tuition Reimbursement/School Police 225829 2,257 STAPLES ADVANTAGE Supplies-General Bldg Police City Center 225980 2,140 RICHFIELD,CITY OF Autos Public Works Check# Amount Vendor/Explanation Account Description Business Unit Explanation 1003637 2,134 BELLBOY CORPORATION Transportation Prairie Village Liquor Store 1003587 2,040 CLAREY'S SAFETY EQUIPMENT Safety Supplies Utility Operations-General 4735 1,997 GENESIS EMPLOYEE BENEFITS,INC Other Deductions Health and Benefits 1003631 1,970 XCEL ENERGY Electric Forest Hills Park 225858 1,945 BCA/CRIMINAL JUSTICE TRAINING Tuition Reimbursement/School Police 4733 1,938 GENESIS EMPLOYEE BENEFITS,INC Other Contracted Services Health and Benefits 1003611 1,925 METRO SALES INCORPORATED* Inside Equipment Repair&Main IT Operating 225784 1,853 INTERNATIONAL UNION OF OPERATI Union Dues Withheld General Fund 225796 1,767 MACQUEEN EQUIPMENT INC Equipment Parts Fleet Operating 225964 1,657 VALLEYFAIR AMUSEMENT PARK Miscellaneous Police 225936 1,639 PRAIRIE EQUIPMENT COMPANY Small Tools Sewer System Maintenance 1003660 1,586 GENUINE PARTS COMPANY Small Tools Fleet Operating 225801 1,584 MHSRC/RANGE Tuition Reimbursement/School Police 225875 1,532 CRYSTEEL TRUCK EQUIPMENT Equipment Parts Fleet Operating 1003629 1,531 WHEELER HARDWARE COMPANY Contract Svcs-Garden Rm/Caf. City Hall-CAM 1003606 1,527 JEFFERSON FIRE&SAFETY INC Protective Clothing Fire 225856 1,436 BARR ENGINEERING COMPANY Other Contracted Services Storm Drainage 1003680 1,417 MN SUPPLY Equipment Repair&Maint Fleet Operating 225859 1,380 BEACON ATHLETICS Operating Supplies Park Maintenance 1003692 1,355 STONEBROOKE Equipment Parts Fleet Operating 225958 1,350 TOTAL REGISTER Other Contracted Services Prairie Village Liquor Store 225954 1,343 TITAN ENERGY SYSTEMS Contract Svcs-HVAC Fire Station#4 1003609 1,335 LUBRICATION TECHNOLOGIES INC Lubricants&Additives Fleet Operating 225863 1,320 BETHEL UNIVERSITY Tuition Reimbursement/School Fire 225768 1,315 COMMUNITY ACTION PARTNERSHIP Refunds CDBG-Public Service 1003696 1,303 USA MOBILITY WIRELESS INC Pager&Cell Phone IT Operating 4743 1,285 MINNESOTA DEPT OF REVENUE Motor Fuels Fleet Operating 225906 1,280 LANO EQUIPMENT INC Equipment Repair&Maint Fleet Operating 1003598 1,270 GOOD,JAMIE Tuition Reimbursement/School Organizational Services 225961 1,238 US BANK Interest Investment Fund 1003627 1,215 WALL TRENDS INC Contract Svcs-General Bldg City Hall-CAM 225883 1,175 FLEET MAINTENANCE INC Equipment Repair&Maint Fleet Operating 1003647 1,110 CLAREY'S SAFETY EQUIPMENT EMS Supplies Fire 1003663 1,095 GRAINGER Supplies-General Bldg Fitness/Conference-Cmty Ctr 4736 1,054 CERIDIAN Garnishment Withheld General Fund 1003585 1,047 CARDIAC SCIENCE CORPORATION EMS Supplies Fire 1003643 1,029 CDW GOVERNMENT INC. Operating Supplies Police 1003700 1,028 WATSON CO INC,THE Merchandise for Resale Concessions 225969 970 WHEELER LUMBER LLC Operating Supplies Traffic Signs 225766 959 CENTURYLINK Telephone IT Telephone 225982 951 PETTY CASH Cash Over/Short General Fund 1003664 933 GRANICUS INC Software Maintenance IT Operating 1003614 918 PARLEY LAKE WINERY Wine Domestic Prairie View Liquor Store 225764 859 BERNICK'S WINE Beer Prairie View Liquor Store 225895 832 HOHENSTEINS INC Beer Den Road Liquor Store 225918 828 MINNESOTA PIPE AND EQUIPMENT* Small Tools Water System Maintenance 1003671 823 KIDS TEAM TENNIS LLC Instructor Service CC-Tennis 1003594 816 FASTENAL COMPANY Operating Supplies Flying Cloud Fields 225811 807 PAUSTIS&SONS COMPANY Transportation Prairie Village Liquor Store 225848 800 3RD LAIR Instructor Service Camps 225960 758 UNIVERSAL ATHLETIC SERVICES IN Operating Supplies Flying Cloud Fields Check# Amount Vendor/Explanation Account Description Business Unit Explanation 225890 755 HD SUPPLY WATERWORKS LTD Equipment Parts Water System Maintenance 1003688 698 ROTO-ROOTER Contract Svcs-Plumbing Public Works/Parks 225975 697 YOUNGSTEDTS COLLISION CENTER Equipment Repair&Maint Fleet Operating 225798 692 MARK'S CONCESSION REPAIR LLC Equipment Repair&Maint Concessions 225802 688 MIDWEST COCA COLA BOTTLING COM Misc Taxable Prairie View Liquor Store 1003669 685 JOHN HENRY FOSTER MINNESOTA IN Maintenance Contracts Water Treatment Plant 225832 664 SURLY BREWING CO Beer Den Road Liquor Store 225785 652 J&R COMPLETE AUTO&RADIATOR Equipment Repair&Maint Fleet Operating 1003615 652 PETERSON BROS ROOFING AND CONS Contract Svcs-Roof Prairie Village Liquor Store 225838 650 WILKUS ARCHITECTS INC Contract Svcs-Gen.Bldg City Center Operations 225933 618 PHYSIO CONTROL INC EMS Supplies Fire 225865 600 BROWN,CHASTITY A Other Contracted Services Arts in the Park 225922 599 MONROE,MICHAEL Other Contracted Services Arts in the Park 1003617 595 PROSOURCE SUPPLY Cleaning Supplies Fitness/Conference-Cmty Ctr 1003667 576 INDUSTRIAL FLOOR MAINTENANCE I Equipment Parts Fleet Operating 225976 576 CARLON,MICHAEL E Deposits Escrow 1003662 540 GOVDELIVERY Software Maintenance IT Operating 1003699 538 VTI Contract Svcs-Security Prairie View Liquor Store 225765 536 BRIN NORTHWESTERN GLASS COMPAN Contract Svcs-General Bldg Fitness/Conference-Cmty Ctr 225894 534 HENNEPIN COUNTY I/T DEPT Software Maintenance IT Operating 1003653 525 DE LAGE LANDEN FINANCIAL SERVI Other Rentals IT Operating 1003625 521 VINOCOPIA Transportation Den Road Liquor Store 225898 519 INFRATECH Repair&Maint.Supplies Utility Operations-General 1003635 512 ASPEN WASTE SYSTEMS INC. Waste Disposal Public Works/Parks 1003672 503 KUSTOM SIGNALS INC Equipment Repair&Maint Police 225909 500 LHB INC Miscellaneous Administration 225773 493 EDEN PRAIRIE WINLECTRIC Building Repair&Maint. Park Maintenance 1003599 493 GRAINGER Equipment Repair&Maint Water Treatment Plant 1003704 489 ZIEGLER INC Equipment Parts Fleet Operating 1003677 487 MAVO SYSTEMS Building Repair&Maint. Water Treatment Plant 225897 481 INDUSTRIAL PAINTING SPECIALIST Equipment Repair&Maint Water Treatment Plant 225839 480 WILLISTON FITNESS CENTER Special Event Fees Community Center Admin 1003659 476 G&K SERVICES Clothing&Uniforms Fleet Operating 225968 468 WATER CONSERVATION SERVICES IN OCS-Utility Locates Water System Maintenance 225805 465 MINNESOTA WANNER COMPANY Equipment Repair&Maint Park Maintenance 1003681 453 PARK SUPPLY OF AMERICA INC Supplies-Plumbing Police City Center 1003613 448 NEW FRANCE WINE COMPANY Transportation Prairie Village Liquor Store 225775 440 GE CAPITAL Other Rentals IT Operating 225815 434 PROP United Way Withheld General Fund 225951 425 SUBURBAN WILDLIFE CONTROL INC Grounds Maintenance Utility Operations-General 1003701 425 WHEELER HARDWARE COMPANY Contract Svcs-General Bldg Garden Room Repairs 225780 406 HENNEPIN COUNTY TREASURER Operating Supplies-Escrow Planning 225941 400 REMARKABLE REPTILES,THE Other Contracted Services Outdoor Center 225974 400 WRIGHT,JOHN Other Contracted Services Arts in the Park 225949 397 STAPLES ADVANTAGE Office Supplies Customer Service 225885 392 FORKLIFTS OF MINNESOTA INC Maintenance Contracts Utility Operations-General 225953 390 TESSMAN SEED CO Chemicals Park Maintenance 225862 386 BERRY COFFEE COMPANY Merchandise for Resale Concessions 225834 385 US BANK Other Contracted Services Health and Benefits 1003639 382 BOUNDLESS NETWORK Clothing&Uniforms Facilities Staff 1003588 377 CUSTOM HOSE TECH Equipment Repair&Maint Fleet Operating Check# Amount Vendor/Explanation Account Description Business Unit Explanation 225836 362 VERIZON WIRELESS Pager&Cell Phone Park Maintenance 225877 350 DIETHELM,TAMMY L Other Contracted Services Pleasant Hill Cemetery 225847 342 PETTY CASH-POLICE DEPT 225962 339 US HEALTH WORKS MEDICAL GRP MN Health&Fitness Fire 1003584 332 BOUNDLESS NETWORK Operating Supplies Community Center Admin 1003619 332 SPS COMPANIES Equipment Repair&Maint Water Treatment Plant 225853 321 AQUA LOGIC INC Supplies-Pool Pool Maintenance 225944 320 ROOT 0 MATIC Contract Svcs-Plumbing Public Works/Parks 225870 301 CENTURYLINK Telephone IT Telephone 225795 300 LIGHTNING PRINTING INC Operating Supplies Fitness Center 225869 300 CENTER FOR SOMALIA HISTORY STU Tuition Reimbursement/School Police 225874 300 CREATURE ENCOUNTERS INC Other Contracted Services Outdoor Center 1003638 293 BOUND TREE MEDICAL LLC EMS Supplies Fire 225778 289 HD SUPPLY WATERWORKS LTD Small Tools Water System Maintenance 1003582 285 BELLBOY CORPORATION Transportation Prairie Village Liquor Store 225846 285 SCOTT COUNTY SHERIFF'S OFFICE Deposits Escrow 225776 284 GERTENS Chemicals Park Maintenance 225919 282 MINNESOTA VALLEY ELECTRIC COOP Electric Traffic Signals 225762 273 ANDERBERG INNOVATIVE PRINT SOL Printing Police 225916 270 MIDWEST COCA COLA BOTTLING COM Misc Taxable Prairie Village Liquor Store 225813 267 POWERPLAN OIB Equipment Parts Fleet Operating 1003592 267 EDEN PRAIRIE FIREFIGHTER'S REL Union Dues Withheld General Fund 225884 256 FLYING CLOUD ANIMAL HOSPITAL Canine Supplies Police 225981 255 US POSTMASTER Postage Senior Center Admin 225851 252 AMERIPRIDE LINEN&APPAREL SER Repair&Maint.Supplies Den Road Liquor Store 225782 250 HITESMAN&ASSOCIATES,P.A. Other Contracted Services Organizational Services 225828 248 ST PAUL,CITY OF Patching Asphalt Street Maintenance 1003628 239 WATSON CO INC,THE Merchandise for Resale Concessions 225835 239 US HEALTH WORKS MEDICAL GRP MN Health&Fitness Fire 1003658 236 FASTSIGNS Advertising Special Events Admin 1003595 232 FASTSIGNS Operating Supplies Ice Show 1003633 230 ANDREWS,JOHN Travel Expense Police 1003641 230 BROWN,KEVIN Travel Expense Police 1003642 230 CARLSTON,BRANDON Travel Expense Police 1003651 230 DAVIS,BOB Travel Expense Police 1003656 230 EICHMAN,NATHAN Travel Expense Police 1003666 230 HENKE,RONNIE Travel Expense Police 1003691 230 SINON,CORY Travel Expense Police 225769 224 COMMUNITY HEALTH CHARITIES United Way Withheld General Fund 225781 223 HIGHWAY TECHNOLOGIES Repair&Maint.Supplies Sewer System Maintenance 1003626 217 W P&R S MARS CO Equipment Parts Fleet Operating 225806 214 MINT CONDITION DETAILING INC Equipment Repair&Maint Fleet Operating 225943 211 RIGHTWAY GLASS INC Equipment Repair&Maint Fleet Operating 225761 207 AMERIPRIDE LINEN&APPAREL SER Operating Supplies Fire 225797 203 MARCO INC Other Hardware IT Operating 225911 203 MARCO INC Other Contracted Services IT Operating 225833 202 UNITED WAY United Way Withheld General Fund 225831 200 STORK,ALEX Design&Engineering Water Treatment Plant 225889 200 HARLEY CONSULTING&COACHING Equipment Repair&Maint Fleet Operating 1003591 198 DE LAGE LANDEN FINANCIAL SERVI Equipment Repair&Maint IT Operating 225940 191 RAY N WELTER HEATING Mechanical Permits General Fund Check# Amount Vendor/Explanation Account Description Business Unit Explanation 1003661 191 GINA MARIAS INC Operating Supplies Reserves 225959 190 TRAINING&CONSULTING TEAM Tuition Reimbursement/School Police 225800 186 METRO CLEANING Contract Svcs-Garden Romm Garden Room Repairs 225807 185 MN JUVENILE OFFICERS ASSOCIATI Tuition Reimbursement/School Police 1003650 180 D&D INSTRUMENTS Equipment Repair&Maint Fleet Operating 225791 178 KEEPERS Clothing&Uniforms Animal Control 1003649 174 CONNEY SAFETY PRODUCTS Office Supplies Customer Service 1003657 164 FASTENAL COMPANY Equipment Repair&Maint Park Maintenance 225757 162 AARP DRIVERS SAFETY Other Contracted Services Senior Center Programs 1003665 161 HD SUPPLY FACILITIES MAINTENAN Operating Supplies Facilities Staff 225799 157 MATSON,TOM Small Tools Fleet Operating 4742 154 OPTUM HEALTH Other Contracted Services Health and Benefits 225826 150 SPRING LAKE PARK FIRE DEPT INC Tuition Reimbursement/School Fire 225756 144 440400-NCPERS MINNESOTA PERA Health and Benefits 225803 144 MINNEAPOLIS FINANCE DEPARTMENT Software Maintenance IT Operating 1003623 142 TOLL GAS AND WELDING SUPPLY Repair&Maint.Supplies Water Treatment Plant 225910 131 LIGHTNING PRINTING INC Printing Arts in the Park 1003693 130 STREICHERS Clothing&Uniforms Police 225758 129 ABLE HOSE&RUBBER INC Equipment Repair&Maint Water Treatment Plant 1003597 128 FERRELLGAS Equipment Parts Fleet Operating 225794 126 LEAGUE OF MINNESOTA CITIES Office Supplies Customer Service 1003648 126 CONCRETE CUTTING&CORING INC Operating Supplies Street Maintenance 225934 126 PINNACLE DISTRIBUTING Misc Taxable Den Road Liquor Store 1003610 121 MCWATERS,LORENE Mileage&Parking Administration 225808 118 NEW BRIGHTON FORD Equipment Parts Fleet Operating 225955 118 TLO LLC Other Contracted Services Police 225819 117 RICK,ELIZABETH DEE Operating Supplies Outdoor Center 225760 114 AMERICAN BOTTLING COMPANY,THE Misc Non-Taxable Den Road Liquor Store 225950 113 SUBURBAN CHEVROLET Equipment Parts Fleet Operating 225917 113 MINN OFFICE OF ENTERPRISE TECH Other Contracted Services Police 1003579 112 CAMPBELL,CHRISTINA Operating Supplies Arts Center 1003607 107 JOHNSTON,ROB Mileage&Parking Police 1003605 107 JASON'S DELI Operating Supplies Police 225830 105 STATE OF MINNESOTA Licenses&Taxes Fleet Operating 225857 104 BAUER BUILT TIRE AND BATTERY Equipment Parts Fleet Operating 225878 102 DIRECTV Cable TV Community Center Admin 225963 100 USPCA REGION 18 Tuition Reimbursement/School Police 225912 97 MARNANTELI'S PIZZA Operating Supplies Police 225770 95 CPAC Tuition Reimbursement/School Police 1003640 95 BOYER TRUCKS Equipment Parts Fleet Operating 225837 93 WAYTEK INC Operating Supplies Park Maintenance 1003596 92 FEDEX Postage Human Resources 225887 91 GRAND PERE WINES INC Transportation Prairie Village Liquor Store 225866 91 BRYAN ROCK PRODUCTS INC Gravel Water System Maintenance 225965 89 VERIZON WIRELESS Telephone E-911 Program 1003668 88 JASON'S DELI Operating Supplies Police 1003676 88 MAHMUTOVIC,DZEVAD Licenses&Taxes Facilities Staff 4734 87 VANCO SERVICES Miscellaneous Community Center Admin 1003685 87 QUALITY PROPANE Motor Fuels Ice Arena Maintenance 1003636 86 BATTERIES PLUS Operating Supplies Facilities Staff 1003682 86 PBBS EQUIPMENT CORP Supplies-Electrical City Hall-CAM Check# Amount Vendor/Explanation Account Description Business Unit Explanation 1003618 85 SHRED-IT USA MINNEAPOLIS Waste Disposal City Center Operations 225957 84 TOTAL DISPLAYS Equipment Repair&Maint Police 1003630 82 WSB&ASSOCIATES INC Improvements to Land Capital Impr/Maint Fixed 1003583 79 BERTELSON TOTAL OFFICE SOLUTIO Office Supplies Utility Operations-General 225821 74 SHAMROCK GROUP,INC-ACE ICE Transportation Prairie View Liquor Store 1003686 72 QUICKSILVER EXPRESS COURIER Other Contracted Services Communications 225790 71 KAUNE,JENNIFER Operating Supplies Eden Prairie Players 225789 68 JOHNSTONE SUPPLY Supplies-Plumbing City Center Operations 1003679 67 MITCHELL,SANDY Travel Expense Police 225793 65 LAKE COUNTRY DOOR LLC Equipment Repair&Maint Fleet Operating 1003589 64 DANHAUSER,LINDSEY Operating Supplies Arts Center 225931 64 PETSMART Canine Supplies Police 1003670 61 KARST,JOAN E Repair&Maint-Ice Rink 3rd Sheet of Ice 225945 61 SHAMROCK GROUP,INC-ACE ICE Transportation Den Road Liquor Store 225850 60 AIR-HYDRAULIC SYSTEMS INC. Equipment Parts Fleet Operating 1003689 58 SCHULZE,CARTER Mileage&Parking Engineering 225978 58 ESTATE OF DAVID M ROE,THE Deposits Escrow 225810 58 PAPER DIRECT INC Office Supplies Customer Service 1003602 56 HD SUPPLY FACILITIES MAINTENAN Supplies-Electrical City Center Operations 225956 55 TODD,JUDY Deposits-P&R Refunds Community Center Admin 1003603 54 HOLMGREN,GRETCHEN Mileage&Parking Prairie View Liquor Store 225947 54 SIGNSOURCE Office Supplies Administration 1003655 53 DMX MUSIC Other Contracted Services Prairie Village Liquor Store 225820 50 ROMANZI,CATHERINE Refunds Environmental Education 225771 46 DELEGARD TOOL CO Equipment Parts Fleet Operating 1003612 45 METROPOLITAN FORD Equipment Parts Fleet Operating 225929 44 PAPER DIRECT INC Operating Supplies Wine Club 1003604 42 INDUSTRIAL FLOOR MAINTENANCE I Equipment Parts Fleet Operating 225921 40 MINNETONKA,CITY OF Dues&Subscriptions Senior Center Admin 225852 40 ANGARA,JEYA&SREENIVAS Deposits Community Center Admin 225860 40 BEBREVSKA,VENETA&EMIL NEDEL Deposits Community Center Admin 225926 40 NOTT COMPANY Equipment Repair&Maint Water Treatment Plant 1003621 32 STEWART,KELLY Operating Supplies Outdoor Center 1003684 29 PRIORITY COURIER EXPERTS Equipment Repair&Maint Fleet Operating 225927 27 OLSEN COMPANIES Equipment Parts Fleet Operating 225880 25 EDEN PRAIRIE WINLECTRIC Building Repair&Maint. Park Maintenance 225920 20 MINNESOTA WANNER COMPANY Equipment Repair&Maint Park Maintenance 225864 20 BISCHOFF,DOUGLAS Deposits Community Center Admin 225868 20 CASE,RICHARD Deposits Community Center Admin 225886 20 GOBLISH,THOMAS Deposits Community Center Admin 225892 20 HELSTROM,JEFFREY Deposits Community Center Admin 225903 20 KRAUSE,ERIN Deposits Community Center Admin 225905 20 LAMOTHE,LISA Deposits Community Center Admin 225913 20 MATHIEU,JOAN Deposits Community Center Admin 225924 20 NELSON,STEVE Deposits Community Center Admin 225928 20 OLSON,PAUL Deposits Community Center Admin 225938 20 RAHIMI,RENEE Deposits Community Center Admin 225967 20 WALKER,DAN Deposits Community Center Admin 225970 20 WILKEN,SUSAN Deposits Community Center Admin 225817 18 RICHFIELD,CITY OF Licenses&Taxes Fleet Operating 225904 18 KUHL,STEVE Other Revenue General Fund Check# Amount Vendor/Explanation Account Description Business Unit Explanation 225792 16 KRAEMERS HARDWARE INC Supplies-Pool Pool Maintenance 225818 16 RICHFIELD,CITY OF Licenses&Taxes Fleet Operating 225767 16 COMCAST Wireless Subscription IT Operating 1003581 15 BATTERIES PLUS Ed Center-Supplies City Hall-Direct Costs 225882 13 FISERV INC Bank and Service Charges Water Accounting 225809 13 OPHOVEN SAW SERVICE Equipment Repair&Maint Senior Center Programs 225871 12 CHRISTENSEN,MARGE Deposits-P&R Refunds Community Center Admin 225881 12 ELFTMANN,SYLVIA Deposits-P&R Refunds Community Center Admin 225899 12 IVERSON,MARGARET Deposits-P&R Refunds Community Center Admin 225814 10 PREMIUM WATERS INC Supplies-General Bldg Fitness/Conference-Cmty Ctr 1003695 9 UPS Office Supplies Utility Operations-General 225872 5 COMCAST Operating Supplies Fire 1,985,728 Grand Total City of Eden Prairie Purchasing Card Payment Report March Purchases Amount Explanation Vendor Account Description Business Unit 83 US-office wall HOME DEPOT CREDIT SERVICES Operating Supplies Fleet Operating 14 US-tie downs HOME DEPOT CREDIT SERVICES Equipment Repair&Maint Park Maintenance 673 US-supplies MENARDS Capital Under$25,000 Staring Lake -129 US-return supplies MENARDS Capital Under$25,000 Staring Lake 51 US-outdoor ctr MENARDS Building Materials Outdoor Center 132 US-mowing/sign HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 85 US-ball fields HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 180 US-mowing MENARDS Operating Supplies Park Maintenance 78 US-ball fields/tool sheds MENARDS Operating Supplies Park Maintenance 256 US-flying cloud expan MENARDS Building Materials Flying Cloud Fields 43 US-ball fields/tennis MENARDS Operating Supplies Park Maintenance 25 US-RL baseball HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 19 US-tool MENARDS Operating Supplies Park Maintenance 44 US-tools/archery targets HOME DEPOT CREDIT SERVICES Small Tools Park Maintenance 262 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 16 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 16 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 8 US-café supplies JO-ANN FABRIC Operating Supplies Concessions 24 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 223 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 48 US-sr ctr supplies WALMART COMMUNITY Operating Supplies Senior Center Admin 43 US-St Patricks Day CUB FOODS EDEN PRAIRIE Operating Supplies Senior Center Programs 646 US-St Patricks Day ANNIE'S CAFE Operating Supplies Senior Center Programs 36 US-employee recognition lunch RAINBOW FOODS INC. Miscellaneous Internal Events 348 US-plaque/wall plates EXECUTIVE OCEAN Employee Award Internal Events 23 US-wall plaque plate EXECUTIVE OCEAN Employee Award Internal Events 159 US-filter press parts NORTHERN TOOL&EQUIPMENT Equipment Repair&Maint Water Treatment Plant 600 US-basin ladders HALLIDAY PRODUCTS Equipment Repair&Maint Water Treatment Plant 6 US-Polar plunge MENARDS Operating Supplies Park Maintenance 210 US-archery MENARDS Building Repair&Maint. Park Maintenance 137 US-tennis nets NORTHERN TOOL&EQUIPMENT Equipment Repair&Maint Park Maintenance 64 US-project mgmt IT PODIO INC Software IT Operating 115 US-office supplies OFFICEMAX CREDIT PLAN Office Supplies Utility Operations-General 361 US-TCALMC meeting TWIN CITY AREA LABOR MANAGEMEN Conference/Training Utility Operations-General 216 US-water conf TEXAS ROADHOUSE Travel Expense Utility Operations-General 191 US-water conf HOLIDAY INN Travel Expense Water System Maintenance 191 US-water conf HOLIDAY INN Travel Expense Water System Maintenance 191 US-water conf HOLIDAY INN Travel Expense Water System Maintenance 150 US-seminar PAYPAL INC Travel Expense Water System Maintenance 290 US-labels for piping ENGRAVING AWARDS&GIFTS Operating Supplies Water Treatment Plant 108 US-paper towels MENARDS Lab Supplies Water Treatment Plant 8 US-supplies NORTHERN TOOL&EQUIPMENT Operating Supplies Street Maintenance 5 US-shop supplies MENARDS Building Repair&Maint. Park Maintenance 75 US-license fees DEPT OF LABOR&INDUSTRY Licenses,Permits,Taxes,Fees Park Maintenance 75 US-license fees DEPT OF LABOR&INDUSTRY Licenses,Permits,Taxes,Fees Park Maintenance 11 US-purgatory park bldg MENARDS Building Repair&Maint. Park Maintenance 395 US-training MINNESOTA SAFETY COUNCIL Tuition Reimbursement/School Water Treatment Plant Amount Explanation Vendor Account Description Business Unit 45 US-link seals for pipes R E CARLSON Equipment Repair&Maint Water Treatment Plant 51 US-garbage bags,cleanup event HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 2,576 US-FDIC conf EXPEDIA Travel Expense Fire 22 US-meeting CULVER'S Operating Supplies Fire 1,005 US-conf FDIC Tuition Reimbursement/School Fire 755 US-conf FDIC Tuition Reimbursement/School Fire 250 US-conf FDIC Tuition Reimbursement/School Fire 340 US-state cert dues MINNESOTA FIRE SERVICE CERTIFI Dues&Subscriptions Fire 985 US-conf FDIC Tuition Reimbursement/School Fire 980 US-conf FDIC Tuition Reimbursement/School Fire 50 US-conf ARROWWOOD RADISSON RESORT Conference/Training Fire 615 US-conf IAFC Conference/Training Fire 37 US-bday party supplies LOWE'S Operating Supplies Birthday Parties 75 US-supplies S&S WORLDWIDE Operating Supplies Fit Kids Club 50 US-supplies S&S WORLDWIDE Operating Supplies Day Care 331 US-supplies S&S WORLDWIDE Operating Supplies Birthday Parties 64 US-bday party supplies MICHAELS-THE ARTS&CRAFTS S Operating Supplies Birthday Parties 4 US-supplies WALMART COMMUNITY Operating Supplies Birthday Parties 6 US-Arbor day walk WALMART COMMUNITY Training Supplies Special Events Admin 3 US-Arbor day walk HOME DEPOT CREDIT SERVICES Training Supplies Special Events Admin 75 US-membership dues FBINAA Dues&Subscriptions Police 125 US-rear view mirrors R&R MARINE INC Equipment Parts Fleet Operating 28 US-supplies UNIVERSITY OF MINNESOTA Operating Supplies Street Maintenance 69 US-supplies MENARDS Operating Supplies Street Maintenance 7 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 8 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 57 US-café food WALMART COMMUNITY Merchandise for Resale Concessions -5 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 5 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 9 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 20 US-café food TARGET Merchandise for Resale Concessions 10 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 35 US-café food CUB FOODS EDEN PRAIRIE Merchandise for Resale Concessions 43 US-café food CUB FOODS EDEN PRAIRIE Merchandise for Resale Concessions 4 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 5 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 173 US-Lodging-Kevin HOLIDAY INN Travel Expense Water Treatment Plant 87 US-Lodging-Borg HOLIDAY INN Travel Expense Water Treatment Plant 196 US-LMC Training TWIN CITY AREA LABOR MANAGEMEN Tuition Reimbursement/School Water Treatment Plant 32 US-radon testing kits AIR CHEK Safety Supplies Water Treatment Plant 596 US-employee training FRED PRYOR SEMINARS Tuition Reimbursement/School Water Treatment Plant 28 US-silver sneakers CUB FOODS EDEN PRAIRIE Operating Supplies Fitness Classes 117 US-afternoon bunny supplies PARTY CITY Operating Supplies Special Events(CC) 5 US-afternoon bunny supplies APPLE.COM Operating Supplies Special Events(CC) 57 US-admin supplies OFFICE DEPOT CREDIT PLAN Operating Supplies Community Center Admin 13 US-MNFAC SHAMROCKS Operating Supplies Fire 8 US-batteries BATTERIES PLUS Operating Supplies Fire 74 US-handbook MBS DIRECT Training Supplies Fire 8 US-meal DOT CAFE Operating Supplies Fire 6 US-parking MPLSPARKING.COM Mileage&Parking Fire 6 US-parking MPLSPARKING.COM Mileage&Parking Fire Amount Explanation Vendor Account Description Business Unit 6 US-parking MPLSPARKING.COM Mileage&Parking Fire 15 US-meal SHAMROCKS Operating Supplies Fire 73 US-blue card KOWALSKI'S MARKET Operating Supplies Fire 14 US-blue card BRUEGGERS BAGEL Operating Supplies Fire 75 US-iPad repair BEST BUY Operating Supplies Fire 31 US-blue card KOWALSKI'S MARKET Operating Supplies Fire 14 US-blue card KOWALSKI'S MARKET Operating Supplies Fire 14 US-blue card BRUEGGERS BAGEL Operating Supplies Fire 51 US-blue card KOWALSKI'S MARKET Operating Supplies Fire 13 US-MNFAC KEITH'S KETTLE Operating Supplies Fire 39 US-dues&subscription AEAP Dues&Subscriptions Planning 310 US-job posting MN APA Conference/Training Planning 150 US-job posting MN APA Conference/Training Planning 150 US-job posting MN APA Conference/Training Planning 150 US-job posting MN APA Conference/Training Planning 150 US-job posting MN APA Conference/Training Planning 150 US-job posting MN APA Conference/Training Planning 475 US-conf ICE SKATING INSTITUTE Conference/Training Recreation Admin 360 US-license renewal PARABEN CORPORATION Miscellaneous IT Operating 160 US-training/membership dues PAYPAL INC Tuition Reimbursement/School Police 418 US-forensic supplies MICRO CENTER A/R Miscellaneous IT Operating 11 US-irrigation RI, MENARDS Building Repair&Maint. Park Maintenance 15 US-RL supplies MENARDS Building Repair&Maint. Round Lake 13 US-seminar lunch DAIRY QUEEN Conference/Training Park Maintenance 4 US-RL supplies MENARDS Building Repair&Maint. Round Lake 5 US-RL supplies MENARDS Building Repair&Maint. Round Lake 18 US-water source irrigation MENARDS Operating Supplies Park Maintenance 19 US-baseline manuals irrigation HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 21 US-tool irrigation SEARS EDEN PRAIRIE Small Tools Park Maintenance 63 US-irrigation ' MENARDS Operating Supplies Park Maintenance 593 US-outdoor ctr MENARDS Building Materials Outdoor Center 67 US-shop supplies MENARDS Building Materials Outdoor Center 16 US-outdoor ctr MENARDS Building Materials Outdoor Center 48 US-outdoor ctr MENARDS Building Materials Outdoor Center 57 US-outdoor ctr UNITED PRODUCTS Building Materials Outdoor Center 404 US-shop supplies MENARDS Building Materials Outdoor Center 69 US-shop supplies MENARDS Building Materials Outdoor Center 54 US-Mailbox supplies HOME DEPOT CREDIT SERVICES Operating Supplies Street Maintenance 45 US-cleaning supplies TARGET Janitor Service Prairie Village Liquor Store 45 US-cleaning supplies TARGET Janitor Service Den Road Liquor Store 45 US-cleaning supplies TARGET Janitor Service Prairie View Liquor Store 10 US-Gift card for customer EDEN PRAIRIE LIQUOR Miscellaneous Prairie View Liquor Store 36 US-workshop-Jay Lothammer PAYPAL INC Conference/Training Parks Administration 14 US-sotrage HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 103 US-boat rack MENARDS Building Repair&Maint. Park Maintenance 11 US-playground box hinge MENARDS Equipment Repair&Maint Park Maintenance 4 US-fit floor supplies MICHAELS-THE ARTS&CRAFTS S Operating Supplies Fitness Center 19 US-fit floor supplies HOME DEPOT CREDIT SERVICES Operating Supplies Fitness Center 156 US-white board OFFICEMAX CREDIT PLAN Operating Supplies Fleet Operating 68 US-chainsaw parts OMEGA INDUSTRIES Equipment Repair&Maint Park Maintenance 17 US-afternoon bunny supplies TARGET Operating Supplies Special Events(CC) Amount Explanation Vendor Account Description Business Unit 58 US-afternoon bunny supplies DOLLAR TREE STORES,INC. Operating Supplies Special Events(CC) 6 US-operating supplies TARGET Operating Supplies Community Center Admin 106 US-afternoon bunny supplies WALMART COMMUNITY Operating Supplies Special Events(CC) 1 US-afternoon bunny supplies DOLLAR TREE STORES,INC. Operating Supplies Special Events(CC) 26 US-afternoon bunny supplies TARGET Operating Supplies Special Events(CC) 27 US-afternoon bunny supplies MICHAELS-THE ARTS&CRAFTS S Operating Supplies Special Events(CC) 34 US-afternoon bunny supplies TARGET Operating Supplies Special Events(CC) 60 US-operating supplies OFFICEMAX CREDIT PLAN Operating Supplies Community Center Admin 8 US-S Heddle-going away,punch RAINBOW FOODS INC. Employee Award Organizational Services 13 US-Folders for interviews OFFICE DEPOT CREDIT PLAN Training Supplies Organizational Services 11 US-Farewell parties-Spieker,L CUB FOODS EDEN PRAIRIE Employee Award Organizational Services 145 US-office supplies OFFICEMAX CREDIT PLAN Operating Supplies Fire 2 US-parking meter MPLS METERS Operating Supplies Fire 51 US-snacks for blue card trig KOWALSKI'S MARKET Operating Supplies Fire 64 US-replacement brooms MENARDS Small Tools Fire 130 US-meeting EDEN PRAIRIE HALAL MARKET Miscellaneous Housing and Community Service 38 US-somali meeting RAINBOW FOODS INC. Miscellaneous Housing and Community Service 97 US-supplies BEST BUY Operating Supplies Prairie Village Liquor Store 97 US-supplies BEST BUY Operating Supplies Den Road Liquor Store 97 US-supplies BEST BUY Operating Supplies Prairie View Liquor Store 40 US-UB recurring credit card PAYPAL INC Bank and Service Charges Utility Operations-General 20 US-epermit web security PAYPAL INC Equipment Repair&Maint IT Operating 48 US-UB online processing PAYPAL INC Bank and Service Charges Utility Operations-General 2,143 US-Feb2013 Bldg Surchgs DEPT OF LABOR&INDUSTRY Building Surcharge General Fund 729 US-Feb2013 Bldg Surchgs DEPT OF LABOR&INDUSTRY Mechanical Surcharge General Fund 521 US-Feb2013 Bldg Surchgs DEPT OF LABOR&INDUSTRY Plumbing Surcharge General Fund -68 US-Feb2013 Bldg Surchgs DEPT OF LABOR&INDUSTRY Other Revenue General Fund 200 US-Annual plan SURVEYMONKEY.COM Dues&Subscriptions Organizational Services 8 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 21 US-café food KOWALSKI'S MARKET Merchandise for Resale Concessions 753 US-café supplies US FOOD CULINARY EQUIPMENT&S Operating Supplies Concessions 21 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 1,042 US-supplies EMI Other Rentals Ice Show 32 US-café food RAINBOW FOODS INC. Merchandise for Resale Concessions 69 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 84 US-café food WALMART COMMUNITY Merchandise for Resale Concessions 49 US-special event HENNEPIN COUNTY TREASURER Licenses,Permits,Taxes,Fees Concessions 49 US-special event HENNEPIN COUNTY TREASURER Licenses,Permits,Taxes,Fees Concessions 49 US-special event HENNEPIN COUNTY TREASURER Licenses,Permits,Taxes,Fees Concessions 49 US-special event HENNEPIN COUNTY TREASURER Licenses,Permits,Taxes,Fees Concessions 165 US-signage DISPLAYS2GO Operating Supplies Community Center Admin 39 US-Water conference lunch BRIGITTE'S RHINELANDER Travel Expense Water Enterprise Fund 7 US-parking STANDARD PARKING Mileage&Parking Economic Development 10 US-chamber event ARAMARK FRAUENSHUH Mileage&Parking Economic Development 75 US-Award entries MAGC Awards Communications 300 US-Service SURVEYMONKEY.COM Other Contracted Services Communications 20 US-Partnership breakfast,Maht EDEN PRAIRIE SCHOOL Mileage&Parking Community Development Admin. 234 US-pull up bars for workout ro AMAZON.COM Health&Fitness Fire 1,712 US-iPads APPLE.COM Operating Supplies Fire 63 US-award plaque HISDAHLS INC Printing Utility Operations-General 18 US-food for council workshop KOWALSKI'S MARKET Miscellaneous City Council Amount Explanation Vendor Account Description Business Unit 78 US-sunshine-N While BACHMANS CREDIT DEPT Deposits Escrow 106 US-food for council workshop JASON'S DELI Miscellaneous City Council 2,420 US-employee service awards HALLMARK INSIGHTS Employee Award Internal Events 11 US-L McWaters-CC personal use KOWALSKI'S MARKET Deposits Escrow 38 US-March SLUC lunch-L Creamer SENSIBLE LAND USE COALITION Miscellaneous Community Development Admin. 220 US-retirement gift M Munro HALLMARK INSIGHTS Employee Award Organizational Services 220 US-S Kipp retirement gift HALLMARK INSIGHTS Employee Award Organizational Services 74 US-sunshine-P McGinty-VanSickl BACHMANS CREDIT DEPT Deposits Escrow 39 US-L McWaters-CC personal use WALMART COMMUNITY Deposits Escrow 94 US-batteries MEDICBATTERIES.COM Operating Supplies Fitness Classes 74 US-swim lesson supplies SPANGLER FULFILLMENT Operating Supplies Fitness Classes 63 US-office supplies OFFICE DEPOT CREDIT PLAN Operating Supplies Aquatics&Fitness Admin 975 US-oak point licensing fee AMERICAN RED CROSS Licenses,Permits,Taxes,Fees Oak Point Lessons 975 US-licensing fee AMERICAN RED CROSS Licenses,Permits,Taxes,Fees Pool Lessons 25 US-socket HOME DEPOT CREDIT SERVICES Small Tools Sewer System Maintenance -12 US-return HOME DEPOT CREDIT SERVICES Office Supplies Utility Operations-General 35 US-bulbs HOME DEPOT CREDIT SERVICES Office Supplies Utility Operations-General 12 US-bulbs HOME DEPOT CREDIT SERVICES Office Supplies Utility Operations-General 16 US-grease gun NAPA AUTO PARTS Repair&Maint.Supplies Sewer System Maintenance 332 US-air release valves SPS COMPANIES Repair&Maint.Supplies Water System Maintenance 24 US-workshop-L Obiazor PAYPAL INC Conference/Training Recreation Admin 466 US-employee recognition lunch Bent Creek Golf Club Miscellaneous Internal Events 44 US-shop supplies MENARDS Repair&Maint.Supplies Sewer System Maintenance 34 US-shop supplies MENARDS Repair&Maint.Supplies Storm Drainage 220 US-on call camera BEST BUY Office Supplies Utility Operations-General 106 US-shop supplies MENARDS Small Tools Storm Drainage 287 US-MCFOA annual state conf BEST WESTERN KELLY INN,THE Conference/Training City Clerk 118 US-tools HOME DEPOT CREDIT SERVICES Small Tools Storm Drainage 28 US-tube STORMS WELDING&MFG INC. Repair&Maint.Supplies Storm Drainage 43 US-supplies MENARDS Repair&Maint.Supplies Storm Drainage 46 US-meal-lunchtime seminar GINA MARIAS INC Operating Supplies Engineering 48 US-work equip MENARDS Operating Supplies Park Maintenance 22 US-Equip/trailer tool box MENARDS Operating Supplies Park Maintenance 161 US-shovels/rakes HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 99 US-supplies MENARDS Operating Supplies Park Maintenance 189 US-supplies A.M.LEONARD Operating Supplies Park Maintenance 161 US-tie downs MENARDS Operating Supplies Park Maintenance 27 US-supplies MENARDS Operating Supplies Park Maintenance 337 US-Resources TLO LLC Other Contracted Services Police 215 US-jail supplies STREICHERS Operating Supplies Police 14 US-reserve calendar-march CALENDAR WIZ Operating Supplies Reserves 158 US-operating supplies GRAINGER Operating Supplies Fire 19 US-operating supplies MICHAELS-THE ARTS&CRAFTS S Operating Supplies Fire 140 US-dues and subscriptions IAAI Dues&Subscriptions Fire 495 US-conf IAAI Conference/Training Fire 30 US-conf ORBITZ Conference/Training Fire 348 US-conf SUN COUNTRY Training Supplies Fire 103 US-food for council workshop GRANITE CITY FOOD&BREWERY Travel Expense Water Treatment Plant 346 US-water school HOLIDAY INN Travel Expense Water Treatment Plant 162 US-Bldg 51 GB supplies AIRLIFT DOORS INC. Repair&Maint.Supplies Fire Station#5 1,840 US-restock shop B&F FASTENER SUPPLY CO Repair&Maint.Supplies Utility Operations-General Amount Explanation Vendor Account Description Business Unit 625 US-pipe fittings FERGUSON ENTERPRISES INC Equipment Parts Water System Maintenance 10 US-Scripts for one act SAMUEL FRENCH INC Operating Supplies Theatre Initiative 4 US-Glue for ceramic studio MICHAELS-THE ARTS&CRAFTS S Operating Supplies Arts Center 226 US-supplies ID ZONE Operating Supplies Community Center Admin 36 US-dust collection-SC MENARDS Equipment Repair&Maint Senior Center Admin 8 US-SC planer DEWALT FACTORY Equipment Repair&Maint Senior Center Admin 180 US-marina bldg MENARDS Building Repair&Maint. Park Maintenance 12 US-marina bldg MENARDS Building Repair&Maint. Park Maintenance 11 US-Critter food PETCO Operating Supplies Outdoor Center 67 US-Nebraska Trip CUB FOODS EDEN PRAIRIE Program Trips Outdoor Center 67 US-gas for trip BLUE LINE TRAVEL Program Trips Outdoor Center 74 US-gas for trip KBKS INVEST LLC QWEST Program Trips Outdoor Center 85 US-gas for trip SHELL OIL Program Trips Outdoor Center 80 US-gas for trip CASEYS GENERAL STORE Program Trips Outdoor Center 369 US-Nebraska Trip NEBRASKA NATURE CENTER Program Trips Outdoor Center 47 US-gas for trip GAS'N SHOP Program Trips Outdoor Center 228 US-program trip HOLIDAY INNS EXPRESS Program Trips Outdoor Center 228 US-program trip HOLIDAY INNS EXPRESS Program Trips Outdoor Center 228 US-program trip HOLIDAY INNS EXPRESS Program Trips Outdoor Center 228 US-program trip HOLIDAY INNS EXPRESS Program Trips Outdoor Center 58 US-program trip EDDYS Program Trips Outdoor Center 83 US-program trip SHELL OIL Program Trips Outdoor Center 49 US-Critter food PETCO Operating Supplies Outdoor Center 34 US-Critter food PETCO Operating Supplies Outdoor Center 45 US-Critter food PETCO Operating Supplies Outdoor Center 24 US-propane-maple sap boiling HOLIDAY STATION STORES INC Operating Supplies Outdoor Center 114 US-paint supplies for garden s MENARDS Building Materials Outdoor Center 7 US-shop tools MENARDS Small Tools Park Maintenance 64 US-tree trimmer HOME DEPOT CREDIT SERVICES Operating Supplies Park Maintenance 326 US-IWCE trip BALLY'S LAS VEGAS Conference/Training Public Safety Communications 199 US-dispatch monitor AMAZON.COM Equipment Repair&Maint Public Safety Communications 6 US-dispatch monitor MY CABLE MART Equipment Repair&Maint Public Safety Communications 63 US-iPad cover AMAZON.COM Equipment Repair&Maint Public Safety Communications 26 US-dispatch monitor MY CABLE MART Equipment Repair&Maint Public Safety Communications 168 US-fire paging CAD LANDTRONIX.COM Equipment Repair&Maint Public Safety Communications 69 US-dispatch SHOWMECABLES.COM Equipment Repair&Maint Public Safety Communications 18 US-dispatch YOURCABLESTORE.COM Equipment Repair&Maint Public Safety Communications 5 US-dispatch MY CABLE MART Equipment Repair&Maint Public Safety Communications 40 US-project book AMAZON.COM Equipment Repair&Maint Public Safety Communications 183 US-Snow equip storage STORMS WELDING&MFG INC. Equipment Parts Snow&Ice Control 31 US-food for training CUB FOODS EDEN PRAIRIE Operating Supplies Police 30 US-food for training PANERA BREAD Operating Supplies Police 94 US-training-J Bahr EDEN PRAIRIE SCHOOL Tuition Reimbursement/School Police 29 US-food for training CUB FOODS EDEN PRAIRIE Operating Supplies Police 30 US-food for training PANERA BREAD Operating Supplies Police 79 US-gun parts L3 COMMUNICATIONS Training Supplies Police 79 US-gun parts L3 COMMUNICATIONS Training Supplies Police 274 US-conf AUTISM SOCIETY OF MINESOTA Conference/Training Recreation Admin 59 US-book/dvd SEARCH INSTITUTE Operating Supplies Youth Programs Admin 50 US-father/daughter dance TARGET Operating Supplies CC-Special Events&Trips 230 US-board games for programs TARGET Operating Supplies Youth Programs Admin Amount Explanation Vendor Account Description Business Unit 26 US-supplies for young athletes KOWALSKI'S MARKET Operating Supplies CC-New Adaptive 324 US-leadership development AUTISM SOCIETY OF MINESOTA Conference/Training Recreation Admin 47 US-Sat night out supplies TARGET Operating Supplies SC-Saturday Night Out 27 US-Sat night out supplies TARGET Operating Supplies SC-Saturday Night Out 25 US-webinar KIDS INCLUDED TOGETHER,SAN DI Conference/Training Therapeutic Rec Admin 25 US-webinar KIDS INCLUDED TOGETHER,SAN DI Conference/Training Therapeutic Rec Admin 25 US-webinar KIDS INCLUDED TOGETHER,SAN DI Conference/Training Therapeutic Rec Admin 25 US-webinar KIDS INCLUDED TOGETHER,SAN DI Conference/Training Therapeutic Rec Admin 341 US-fit floor supplies TARGET Operating Supplies Fitness Center -10 US-return AMAZON.COM Operating Supplies Fitness Center -42 US-return AMAZON.COM Operating Supplies Fitness Center -16 US-return AMAZON.COM Operating Supplies Fitness Center 90 US-tuition reimbursement NETA Tuition Reimbursement/School Fitness Classes 163 US-delivery charge POWER SYSTEMS Licenses,Permits,Taxes,Fees Fitness Classes 4,155 US-equipment for group fitness POWER SYSTEMS Capital Under$25,000 Fitness Classes 250 US-licensing fee SCW FITNESS Licenses,Permits,Taxes,Fees Fitness Classes 502 US-Training DICKEYS BARBEQUE Training Supplies Police 3 US-parking MPLSPARKING.COM Mileage&Parking Utility Operations-General 3 US-parking MPLSPARKING.COM Mileage&Parking Utility Operations-General 54,851 Report Total CITY COUNCIL AGENDA DATE: SECTION: Report of the Parks and Recreation Director May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: XIV.D.1. Jay Lotthammer, Director, Eden Prairie Community Foundation Grant Parks and Recreation Award for Sound Equipment Requested Action Move to: Adopt the Resolution accepting the grant funding from the Eden Prairie Community Foundation to purchase sound equipment for concerts and special events. Synopsis A grant in the amount of$4,173 will be used to purchase sound equipment such as sound mixing boards and wireless microphones. The sound equipment will be primarily used for the Staring Lake Concert Series and the Summer Musical. It will also be used at large community events such as the 4th of July and Arts in the Park. Over 15,000 patrons attend concerts, theater productions and events in Eden Prairie every year. Attachments Grant Acceptance Letter Resolution Lindsey Danhauser From: execdir@epcommunityfoundation.org Sent: Monday, April 22, 2013 9:15 AM To: Lindsey Danhauser Subject: Please see correct Forms-Sorry Laura COMMUN1 1(71 FAL, , . _-)rdfri-e-- I T Y FOUNDATION GRANT ACCEPTANCE LETTER April 18, 2013 Agency: EP Park & Recreation Congratulations! The Board of Directors of the Eden Prairie Community Foundation approved the recommendation of our Grant Committee to fund the: Project: Sound Equipment This grant award will cover the one year period effective May 4th, 2013 or sooner. Deposit of the check in the amount of$4173 and returning a signed copy of the letter will indicate your acceptance of the following grant conditions: 1. Funds provided by the Eden Prairie Community Foundation, including interest earned, will be accounted for separately by grantee and will be used only for the purposes specified in your request. 2. At the end of the project period, the grantee will provide the Foundation with a brief narrative which will include how grant monies were used to support the proposed program and report specific evaluation criteria used. 3. Your project end report should also include a statement of grant expenses, reflecting any unexpended funds, and certified correct by your Chief Financial Officer. 4. If at the end of the commitment there remain any unexpended funds, the unexpended cash balance is to be returned to the Foundation and may not be transferred to another agency fund. 6. The Foundation believes it is important to acquaint the public with its grant making activities and regards this project as newsworthy. Please forward us any news release(s) announcing the grant. 7. Photos documenting the program should be directed to the Foundation as soon as they are available. (These photos may be used in our publications including our new annual report.) 8. We request that printed brochures and other materials used in conjunction with the program indicate "supported through a grant from the Eden Prairie Community Foundation". 9. We request that you announce the grant in all of your internal publications including your Website, newsletter, Facebook, emails to donors etc. and other media and forward us copies of them all. Please contact me if you have any questions regarding this correspondence. We wish you success in this important initiative for our community. i Foundation Contact: A..ncy Acce tanc Laura Hookom, Executive Director Eden Prairie Community Foundation 8080 Mitchell Road Eden Prairie, MN 55344 r:te: execdir cni epcommunityFoundation.org 952-949-8499 Laura Hookom Executive Director c 43 M MUNI t Y" FOUNDATION 8080 Mitchell Road Eden Prairie, MN 55344 (0) 952.949.8499 (C) 952-210-2798 www.epcommunityfoundation.orq 2 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2013- RESOLUTION RELATING TO ACCEPTANCE OF GIFTS BE IT RESOLVED BY THE EDEN PRAIRIE CITY COUNCIL THAT: The gift to the City in the am ount of$4,173 to be used for sound equipm ent for the concerts and special event prog rams at the Staring Lak e Amphitheatre and other park locations from the Eden Prairie Community Foundation is hereby recognized and accepted by the Eden Prairie City Council. ADOPTED by the City Council of the City of Eden Prairie this 21st day of May, 2013. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk CITY COUNCIL AGENDA DATE: SECTION: Report of the Fire Chief May 21, 2013 DEPARTMENT/DIVISION: ITEM DESCRIPTION: ITEM NO.: XIV.G.1. George F. Esbensen, Fire Eden Prairie Community Foundation Grant Chief/Director of Emergency Award—Lucas II Device Preparedness Requested Action Move to: Adopt the Resolution accepting the grant funding from the Eden Prairie Community Foundation to help offset the purchase price of a Lucas II Automated Chest Compression device. Synopsis A grant in the amount of$3,000 will be used to offset the purchase of a 4th Lucas II insuring that each fire station has one readily available to assist with responses to cardiac arrest incidents. Attachment Grant Letter 45 .Pvt ,h.41 t_I P1 l j Y r 0 U N F) A T 10 N GRANT ACCEPTANCE LETTER May 4, 2013 Agency: EP Fire Department Congratulations! The Board of Directors of the Eden Prairie Community Foundation approved the recommendation of our Grant Committee to fund the: Project: Lucas 2 System This grant award will cover the one year period effective May 4th, 2013 or sooner. Deposit of the check in the amount of$3000 and returning a signed copy of the letter will indicate your acceptance of the following grant conditions: 1. Funds provided by the Eden Prairie Community Foundation, including interest earned, will be accounted for separately by grantee and will be used only for the purposes specified in your request. 2. At the end of the project period, the grantee will provide the Foundation with a brief narrative which will include how grant monies were used to support the proposed program and report specific evaluation criteria used. 3. Your project end report should also include a statement of grant expenses, reflecting any unexpended funds, and certified correct by your Chief Financial Officer. 4. If at the end of the commitment there remain any unexpended funds, the unexpended cash balance is to be returned to the Foundation and may not be transferred to another agency fund. 6. The Foundation believes it is important to acquaint the public with its grant making activities and regards this project as newsworthy. Please forward us any news release(s) announcing the grant. 7. Photos documenting the program should be directed to the Foundation as soon as they are available. (These photos may be used in our publications including our new annual report.) 8. We request that printed brochures and other materials used in conjunction with the program indicate "supported through a grant from the Eden Prairie Community Foundation". 9. We request that you announce the grant in all of your internal publications including your Website, newsletter, Facebook, emails to donors etc. and other media and forward us copies of them all. Please contact me if you have any questions regarding this correspondence. We wish you success in this important initiative for our community. Foundation Contact: Agency A pta e: Laura Hookom, Executive Director Eden Prairie Community Foundation 8080 Mitchell Road s���� Eden Prairie, MN 55344 Date: execdir@epcommunityFoundation.org 952-949-8499 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO. 2013- RESOLUTION RELATING TO ACCEPTANCE OF GIFTS BE IT RESOLVED BY THE EDEN PRAIRIE CITY COUNCIL THAT: The gift to the City in the am ount of$3,000 to help offset the purchase price of a Lucas II Automated Chest Compression device from the Eden Prairie Community Foundation is hereby recognized and accepted by the Eden Prairie City Council. ADOPTED by the City Council of the City of Eden Prairie this 21st day of May, 2013. Nancy Tyra-Lukens, Mayor ATTEST: Kathleen Porta, City Clerk