· 2020-03-30 · City of North Branch Schedule AtAGlance City Council Regular Session City...

City of North Branch

ScheduleAtAGlance

City Council Regular Session

City Council Chambers

April 28 2014

700 PM 705PM 005 Call to Order Pledge of AllegianceRoll Call

705 PM 715PM 010 Consent Agenda715 PM 715PM 000 Public Hearing715PM 725PM 010 Planning Commission Roberts

725PM 725PM 000 Economic Development Authority725PM 725PM 000 Park Commission

725 PM 730PM 005 Water Light Commission Konrad

730 PM 750PM 020 EngineeringPublic Works WilliamsWSB

750PM 755 PM 005 Administration Konrad

755PM 755 PM 000 Building755 PM 815 PM 020 Finance HillClifton Larson Allen

815 PM 815PM 000 Legal

815 PM 825PM 010 Public Comment

825 PM 825PM 000 Notices Communication Unfinished

Business New Business

825 PM 840 PM 015 Mayor Council

1 of 1 4232014355 PM

NORTH BRANCH CITY COUNCILAGENDA

REVISED42814

MEETING

PLACEDATETIME

700 pm

REGULAR SESSION

CITY HALL 6408 ELM STREET

APRIL 28 2014700PM

1 CALL TO ORDER

2 PLEDGE OF ALLEGIANCE

3 ROLL CALL

4 CONSENT AGENDA ACTION

All matters listed under the Consent Agenda are considered routine andornon

controversial and will be approved by one motion There will be no separate discussion

ofthese items unless a Councilmember or citizen so requests in which case the item will

be removed from the Consent Agenda and considered in its normal sequence on the

Agenda4A Claims4B Minutes March 24 2014 Regular Session

4C Minutes April 3 2014 Work Session

4D Resolution Midsummer Permits American Legion4E Remove From Probation Public Works Maintenance Goodwin

5 PUBLIC HEARINGS NONE

6 COMMITTEESCOMMISSIONS

6A PLANNING COMMISSIONAl Resolution Norlite CUP ACTION

A2 Resolution Cartway Petition EscrowAmount ACTION

A3 Planning Commission Membership DISCUSSION

6B ECONOMIC DEVELOPMENT AUTHORITY NONE

6C PARK COMMISSION NONE

6D WATER AND LIGHT COMMISSION

D1 Mailing Machine Funding Request ACTION

D2 Minutes INFO

7 STAFF REPORTS7A ENGINEERINGPUBLICWORKS

Al Resolution Crack Sealing Project ACTION

A2 Resolution Chloride Quotes ACTION

A3 Resolution AUAR Update ACTION

7B ADMINISTRATIONB1 Resolution Oak Inn Liquor License Amendment ACTION

7C BUILDING NONE

7D FINANCED1 Resolution 2013 Audit Acceptance ACTION

7E LEGAL NONE

8 NOTICES AND COMMUNICATION8A Fire Department Smelt Fry INFO

9 PUBLIC COMMENTPublic Comment provides an opportunity for the public to address the Council on items that

are not on the Agenda Please raise your hand to be recognized Please state your name

and address for the record This section is for the express purpose ofaddressing concerns

ofCity services and operations It shall not be used to clarify individuals views for politicalpurposes

Statements made during public comment are the opinions ofthe individual making thecomment The comments made by individuals during public comment do notrepresent the

official position ofthe City Council individual Councilmembers or City Staff The City Council

is not responsible for false inaccurate ormisleading comments received during publiccomment When inaccurate information is presented the City will attempt fo clarifyinformation and provide accurate information

10 UNFINISHED BUSINESS NONE

11 NEW BUSINESS NONE

12 MAYORCOUNCIL12A Upcoming Agendas DISCUSSION

728 Elimination ofPrimary DISCUSSIONACTION

13 ADJOURN

Since we do not have time to discuss every point presented it may seem that decisions are preconceivedHowever background information is provided fo the City Council on each Agenda item in advance from Staff

and appointed Commissions and decisions are based on this information and past experiences In additionsome items may also have been discussed preliminarily at Council Work Sessions ifyou are aware of

information that has not been discussed please raise your hand to be recognized Comments that are pertinentare appreciated Items requiring excessive time maybe continued to anothermeeting

Upcoming Meeting Reminders

Work Session May1 2014 Work Session 630 pm

Regular Session May 12 2014 7 pmWork Session May15 204 630 pm

Regular Session May27 204 7 pm

9N@2

CITY

OF

NORTH BRANCH

April 15 2014

TO

APRIL 28 2014

12843110

Payroll

APRIL 25 2014

6701552

LIQUOR STORE EXPENDITURES

FOR RESALE

3683965

4A

CITY OF NORTH BRANCH 042414950AM

Page 1

Check Summary Register

APRIL 2014

Name Check Date Check Amt

10100 CASH

Paid Chk 067080 AMERITAS INVESTMENT CORP 4112014 39000 DEFERRED COMP

Paid Chk 067081 BELLBOY CORPORATION 4112014 182981 LIQUOR

Paid Chk 067082 BERNICKS 4112014 84790 LS NA

Paid Chk 067083 CAPITOL BEVERAGE SALES LP 4112014 16950 LS BEER

Paid Chk 067084 DAHLHEIMER DISTRIBUTING 4112014 185797 LS NA

Paid Chk 067085 DR PEPPER SNAPPLE GROUP D 4112014 10296 NA

Paid Chk 067086 JJTAYLOR DISTRIBUTING 4112014 396250 LS BEER

Paid Chk 067087 JOHNSON BROTHERS LIQUOR 4112014 744937 LS WINE

Paid Chk 067088 MCDONALD DISTRIBUTING CO 4112014 1574280 LS BEER

Paid Chk 067089 NB WATER LIGHTCOMMISSI 4112014 914167 WOOD DUCK PONDS PLAT3WAC

Paid Chk 067090 NEW FRANCE WINE 4112014 20500 LS WINE

Paid Chk 067091 PHILLIPS WINE SPIRITS INC 4112014 225556 WINE

Paid Chk 067092 SOUTHERN WINE SPIRITS 4112014 72134 LS WINE

Paid Chk 067093 TOP SHELF SUPPLY INC 4112014 7270 NA

Paid Chk 067094 TOTAL REGISTER SYS 4112014 94900 LSPROFSRVS

Paid Chk 067095 VIKING COCACOLA BOTTLING 411120 1 4 11450 LS NA

Paid Chk 067096 WATSON COMPANY 4112014 38638 NACREDIT ON ACCT

Paid Chk 067097 WIRTZ BEVERAGE MINNESOTA 4112014 112136 LS LIQUOR

Paid Chk 067098 ASSOCIATED BANK 4152014 1808172Paid Chk 067099 CHISAGO COUNTY TREASURER4152014 640619PID160004603

Paid Chk 067100 NBWATER LIGHT COMMISSI 4152014 286872 BLDGPER8586WACIRRPaid

Chk 067101 N BVOLUNTEER FIREFIGHTER41612 0143 35838FIRE RELIEF CONT 1STQTR2014Paid

Chk 067102 DELTA DENTAL4 1820141 14935DENTAL INSACCTPF50727001Paid

Chk 067103 HEALTH PARTNERS4 18201419 22390HEALTH INS Paid

Chk 067104 MN BENEFIT ASSOCIATION4 18201449 34GROUP 485 Paid

Chk 067105 OLSON TIMOTHY4 1820149 70PD CONFTRAININGREIMBURSEMENT Paid

Chk 067106 RICOH USA INC TX4 182014430 86COPY MACH LEASE Paid

Chk 067107 SUN LIFE ASSURANCE COMPAN4182014776 27STD LTDCL218646Paid

Chk 067108 ULTIMATE EVENTS4 182014500 00MIDSUMMER TENTRENTAL DEPOSIT Paid

Chk 067109 BERTELSON TOTAL OFFICE4 282014104 02WW GENOPER Paid

Chk 067110 BLOOMQUIST ELECTRICINC 4 2820143 00500CH REPAIRMAINTBLDGPaid

Chk 067111 CHISAGO COUNTY PRESS4 28201447 00CH SUBSCRIPTION1YRPaid

Chk 067112 DIGITAL ALLYINC4 28201440 00PD REPAIRMAINTMACHPaid

Chk 067113 ECM PUBLISHERS INC4 282014416 71LS ADVERTISE Paid

Chk 067114 EMERGENCY APPARATUSMAIN4282014122 00FIRE REPAIRlMAINTMACHPaid

Chk 067115 FAIRVIEW HEALTH SRVS 93724 28201430 00MED EXAMS Paid

Chk 067116 GK SERVICES4 282014155 17LS PROF SERVICE Paid

Chk 067117 GOPHER STATE ONECALLINC428201468 45WW LOCATES Paid

Chk 067118 GRAYBAR 4 282014319 59LIBRARY GENOPER Paid

Chk 067119 HACH COMPANY4 282014196 06WW GENOPER Paid

Chk 067120 HAWKINS INC4 282014633 89CREDIT ON ACCT Paid

Chk 067121 ISANTI CHISAGOCOUNTY STAR428201465 00LS ADVERTIS Paid

Chk 067122 MINNESOTA CLERICAL CENTER42820141 06575CLERK PROFSRVSPaid

Chk 067123 LOCATORS SUPPLIES INC 4 282014106 15PW GENOPER Paid

Chk 067124 MEYER DANIEL4 2812 014 84 38PD REIMBURSEMENTCONFRRAININGPaid

Chk 067125 MN UI FUND4 2812014840 60UNEMPLOYMENT Paid

Chk 067126 MPCA 4 28201460 00WW CONFTRAININGPaid

Chk 067127 MUNICIPAL CODE CORPORATIO4282014650 00CH PROFSRVSPaid

Chk 067128 N B AREA PUBLIC SCHOOLS42820143 05156PD MOTORFUEL Paid

Chk 067129 NAPA AUTO PARTS4 282014600 24FD REPAIR MAINT Paid

Chk 067130 NORTH BRANCH CHEVROLET4282014635 50CIVIL DEF SIREN BATTERIES Paid

Chk 067131 OLSON POWER EQUIPMENT 4282014131 76PW REPAIRMAINTPaid

Chk 067132 PACE ANALYTICAL SERVICESI4 2812014304 55PaidChk 067133 PARTS MIDWEST INC4 282014546 00CIVIL DEF SIREN COREEXCHPaid

Chk 067134 QUILL CORPORATION4 282014249 06CH GENOPER Paid

Chk 067135 RDJ SPECIALTIES INC 4 2812014551 72


Page 2

Check Summary Register

APRIL 2014

Name Check Date Check Amt

s rterurPaid Chk 067136 STRETCHERS 4282014 103500 PDNON CAP EQUIP

Paid Chk 067137 SUMMIT FIRE PROTECTION 4282014 30000FIREREPAIRMAINTBLDGSPRINKL

Paid Chk 067138 SUPERIOR AUTOMOTIVE 4282014 210000 WWSMTOOLS

Paid Chk 067139 TA SCHIFSKY SONS INC 4282014 24133 PWSTR MAINT MATERIALS

Paid Chk 067140 TIMESAVER OFF SITE 4282014 35200 PLANNINGPROFSRVS

Paid Chk 067141 US BANK 4282014 45000 FISCAL AGENT FEESGOSTR RECON

Paid Chk 067142 VESSCO INC 4282014 55161 WWREPAIRMAINTMACH

Paid Chk 067143 WEST PAYMENT CENTER 4282014 10750PDDUESSUBSCRIPTIONS

Paid Chk 067144 WSB ASSOCIATES INC 4282014 903875 ESSBYAUARPJT01654750

Total Checks 12843110

CITY OF NORTH BRANCH 042414951 AM

Page 1

Check Detail Register

APRIL 2014

Check Amt Invoice Commentr

rrn rr mty fit

10100 CASH

Paid Chk 067080 4112014 AMERITAS INVESTMENT CORP

G 10121705 Other Retirement 390004112014 DEFERRED COMP

Total AMERITAS INVESTMENT CORP 39000

PeidChk087081 4112014BELLBOYCORPORATIONas fmFv

wss

E60949750253 Wine For Resale 45230 42360400 LS WINE

E60949750251 Liquor For Resale 122370 42454200 LIQUOR

E 60949750251 Liquor For Resale 15381 42529700 LS LIQUOR

Total BELLBOY CORPORATION 182981

Paid Chk 067082 4112014 BERNICKS

E 60949750250 NA Sales 2150 392111 LS NA

E60949750252 Beer For Resale 82640 392112 LS BEER CUST102020

Total BERNICKS 84790

Paid Chk 067083 4112014NCAPITOL BEVERAGE SALES LP

E60949750252 Beer For Resale 16950301200 LS BEER

Total CAPITOL BEVERAGE SALES LP 16950

Paid Chk 067084 4112014 DAHLHEIMER DISTRIBUTING

E60949750250 NA Sales 17900 1102417 LS NA

E60949750252 Beer For Resale 167897 1102418 LS BEER

Total DAHLHEIMER DISTRIBUTING 185797

Paid Chk0670854112014 DR PEPPER SNAPPLE GROUP DBA

E60949750250 NA Sales 10296 2449624567 NA

Total DR PEPPER SNAPPLE GROUP DBA 10296

Paid Chk 067086 4112014 JJTAYLOR DISTRIBUTING

E 60949750252 Beer For Resale 396250 2198077 LS BEER

Total JJTAYLOR DISTRIBUTING 396250

PaidChk06u7087rs

4112014 JOHNSON BROTHERS LIQUOR Cb2s umrKrvw

E 60949750251 Liquor For Resale 214275 1817734 LIQUOR

E 60949750253 Wine For Resale 62405 1817735 WINE


E60949750253 Wine For Resale 55014 1817737 WINE

E60949750250 NA Sales 3872 1817738 NA

E60949750252 Beer For Resale 6297 1817739 BEER

E 60949750253 Wine For Resale 210535 1817740 WINE


E60949750251 Liquor For Resale 10622613815 LS LIQUOR

E60949750253 Wine For Resale 5547613816 LS WINE

Total JOHNSON BROTHERS LIQUOR CO 744937

Paid Chk 067088 4112014 MCDONALD DISTRIBUTING CO

E 60949750252 Beer For Resale 688035 352632 BEER

E 60949750250 NA Sales 4505 352633 NA

E 60949750252 Beer For Resale 26125 352941 BEER

E60949750250 NA Sales 1715 352942 NA

E60949750252 Beer For Resale 851110 353123 LS BEER

E60949750250 NA Sales 2790 353124 LS NA

Total MCDONALD DISTRIBUTING CO 1574280

Paid Chk 067089 4112014 NBWATER LIGHT COMMISSION


Page 2


APRIL 2014

Check Amt Invoice Comment

G10120210 WaterLight Comm Payable 592295 WOOD DUCKPONDS PLAT3WAC

G 10120210 WaterLight Comm Payable 1784364114 BP56WACELECIRRG 10120210 WaterLight Comm Payable 1434364814 BP84WACIRR

Total NBWATER LIGHT COMMISSION 914167

PaidChk 067090 4112014 NEW FRANCE WINE

E 60949750253 Wine For Resale 20500 89357 LS WINE

Total NEW FRANCE WINE 20500

Paid Chk 067091 4112014 PHILLIPS WINE SPIRITS INC

E 60949750251 Liquor For Resale 134920 2579757 LS LIQUOR

E60949750253 Wine For Resale 52881 2583080 WINE

E60949750251 liquor For Resale 43502 2583081 LIQUOR


Total PHILLIPS WINE SPIRITS INC 225556

PaidChk0670924112014 SOUTHERN WINEm

SPIRITSF4

E60949750251 Liquor For Resale 20064 1147557 LS LIQUOR


Total SOUTHERN WINE SPIRITS 72134

PaidChk 067093 4112014 TOP SHELF SUPPLY INC

E 60949750250 NA Sales 7270 80718 NA

Total TOP SHELF SUPPLY INC 7270

PaidChkil 067094 4112014 TOTAL REGISTERSYSs i rs

N

E 60949750300 Professional Srvs 94900 51244 LSPROF SRVS

Total TOTAL REGISTER SYS 94900

Paid Chk 067095v411l2014 VIKING COCACOLABOTTLING CO

E60949750250 NA Sales 11450 1371845 LS NA

Total VIKING COCACOLABOTTLING CO 11450

PaidChk067096 4112014 WATSON COMPANYy

E60949750250 NASales 39238 837550 NA

E60949750250 NIA Sales 600 901776 NACREDIT ON ACCT

Total WATSON COMPANY 38638

Paid Chk 067097 4112014 WIRTZ BEVERAGE MINNESOTA

E60949750251 Liquor For Resale 78276 1080162069 LS LIQUOR


Total WIRTZ BEVERAGE MINNESOTA 112136

Paid Chk 067098M

4152014Y ASSOCIATED BANK

E 38947000611 Bond Interest 24871E 38947000601 Debt Srv Bond Principal 1783301 30807579007 LOAN PAY OFF

Total ASSOCIATED BANK 1808172

Paid Chk067099 41152014 CHISAGO COUNTY TREASURER

E 20146500455 PropTaxesAssessments 640619 2014 PID160004603

Total CHISAGO COUNTY TREASURER 640619

Paid Chk 067100 4152014NBWATER LIGHT COMMISSION

G 10120210 WaterLight Comm Payable 286872 2014 BLDGPER8586WACIRRTotal

N BWATER LIGHT COMMISSION2 86872Paid

Chk 0671014 162014N BVOLUNTEER FIREFIGHTERS


Page 3


APRIL 2014


G 10120250 Fire Relief Contribution 335838 2014 FIRE RELIEF CONT1STQTR2014PAY22014

Total NB VOLUNTEER FIREFIGHTERS 335838

Paid Chk 0671024182014v

DELTA DENTALl N

1F p

M

G 10121719 Dental Exceptions 8665 INV5494813 DENTAL EXCEPT

G 10121718 Dental 106270 MAY 2014 DENTALINSACCTPF50727001

Total DELTA DENTAL 114935

Paid Chk 067103 4182014 HEALTH PARTNERS

G 10121717 Health Exceptions 69935 INV46925970 HEALTH EXCEPT

G 10121706 Health 1852455 MAY 2014 HEALTH INS

Total HEALTH PARTNERS 1922390

Paid Chk 067104 4182014 MN BENEFIT ASSOCIATION

G 10121714 Life Insurance 4934 MAY 2014 GROUP 485

Total MN BENEFIT ASSOCIATION 4934

Paid Chk067105418l2014OLSON TIMOTHYf

4fN av v

E 10142110332 Conference Training 970 APRIL 2014 PDCONFiRAININGREIMBURSEMENT

Total OLSON TIMOTHY 970

Paid Chk067106 4182014 RICOH USA INC TX

E 10142110219 Copy Machine Lease 17754 92137985 PDCOPY MACH LEASE

E 10141940219 Copy Machine Lease 25332 92213119 COPY MACH LEASE

Total RICOH USA INC TX 43086

Paid Chk 067107 4182014 SUN LIFE ASSURANCE COMPANY

G 10121715 STDLTD 77627 MAY 2014 STDlLTDCL218646

Total SUN LIFE ASSURANCE COMPANY 77627

Paid Chkf067108 4182014 ULTIMATE EVENTSm

E 85149815430 Miscellaneous 50000 2014 MIDSUMMER TENT RENTAL DEPOSIT

Total ULTIMATE EVENTS 50000

PaidChk 087109 4282014 BERTELSON TOTAL OFFICEv a m

E 60249450210 Operating Supplies 10402 WO924861 WWGENOPER

Total BERTELSON TOTAL OFFICE 10402

Paid Chk 067110 4282014BLOOMQUIST ELECTRIC INC

E10141940401 RepairsMaint Buildings 267300 2281 CHREPAIRMAINTBLDG

E20842280401 RepairsMaint Buildings 33200 2282 FIREREPAIRMAINTBLDG

Total BLOOMQUIST ELECTRIC INC 300500

Paid Chk 067111 4282014 CHISAGO COUNTY PRESS

E 10141940433 Dues and Subscriptions 4700 CHSUBSCRIPTION1YR

Total CHISAGO COUNTY PRESS 4700

Paid Chk 067112 4282014 DIGITALALLY INC

E 10142110404 RepairslMaint MachineryEquip 4000 1065145 PDREPAIRMAINT MACH

Total DIGITALALLY INC 4000vimaua

Paid Chk 067113 4282014 ECM PUBLISHERS INCam A

E 60949750340 Advertising 41671 ACT366767 LS ADVERTISE

Total ECM PUBLISHERS INC 41671

Paid Chk0671 144281201 4 EMERGENCY APPARATUS MAINTn ad

W

E 10142280404 RepairsMaint MachineryEquip 12200 72998 FIREREPAIRMAINTMACH


Page 4


APRIL 2014


Total EMERGENCY APPARATUS MAINT 12200J

Paid Chk0671154282014FAIRVIEW HEALTH SRVS9372

E 10141400314 Medical Exams 3000 ACT7500080 MED EXAMS

Total FAIRVIEW HEALTH SRVS9372 3000

Paid Chk 067116 4282014 G K SERVICES

E60249450237 Uniforms 1424 1043681446 WWUNIFORMS

E 10143000300 Professional Srvs 312 1043681449 PWPROFSRVS

E 10143000237 Uniforms 2822 1043681449 PWUNIFORMS

E 10145000237 Uniforms 706 1043681449 PARKSUNIFORMS

E 60949750300 Professional Srvs 1980 1043686767 LS PROF SERVICE

E 60249450237 Uniforms 1424 1043686778 WWUNIFORMS

E 10145000237 Uniforms 804 1043686781 PARKSUNIFORMS

E 10143000237 Uniforms 2915 1043686781 PWUNIFORMS

E 10141940300 Professional Srvs 31301043692072 CH PROF SERVICE

Total G K SERVICES 15517

Paid Chk 067117um

4282014GOPHER STATEONECALL INC

E60249450300 Professional Srvs 6845 100321 WW LOCATES

Total GOPHER STATE ONECALL INC 6845

Paid Chk 067118 4282014 GRAYBAR

E 10142280401 RepairsMaim Buildings 6712 971842631 FIREREPAIRMAINTBLDG

E 60249450210 Operating Supplies 7131 971912196 WWGENOPER

E10145500210 Operating Supplies 5616 971912196 LIBRARYGENOPER

E 10142500404 RepairsMaim MachineryEquip 3284 971914453 CIVIL DEFENSE SIREN REPAIR

E 10142280401 RepairsMaim Buildings 9216 971938557

Total GRAYBAR 31959

PaidChk0671194282014 HACH COMPANYm

i pa

E 60249450210 Operating Supplies 19606 8756519 WWGENOPER

Total HACH COMPANY 19606

Paid Chk 067120 4282014 HAWKINS INC

E60249450210 Operating Supplies 381543527494 CREDIT ON ACCT

E60249450210 Operating Supplies 13883 3527495

E60249450210 Operating Supplies 87660 3578094 WW GEN OPER

Total HAWKINS INC 63389

Paid Chk 067121 4282014 ISANTICFIISAGO COUNTY STAR

E 60949750340 Advertising 6500 CL21135 LS ADVERTIS

Total ISANTICHISAGO COUNTY STAR 6500

Paid Chk 067122 4282014 LANDMARK PERSON NEL INC

E10141400300 Professional Srvs 31755 6167 CLERKPROFSRVS

E 10142400300 Professional Srvs 21170 6167 BLDGPROFSRVS

E 10142400300 Professional Srvs 21460 6200 BLDGPROFSRVS

E 10141400300 Professional Srvs 32190 6200 CLERKPROF SRVS

Total LANDMARK PERSONNEL INC 106575

PaidChk0671234282014LOCATORS SUPPLIES INCR r

E 10143000210 Operating Supplies 10615 0221926IN PWGENOPER

Total LOCATORS SUPPLIES INC 10615

Paid Chk 067124 4282014 MEYER DANIEL

E 10142110332 Conference Training 8438 2014 PDREIMBURSEMENTCONFTRAINING


Page 5


APRIL 2014


fr Fr5 7 rrrar7J

Total MEYER DANIEL 8438

PaidChk 067125 4282014 MN UI FUND UNEMPLOYMENT

E 10149990142 Unemployment Benefit Payments 84060 ACT0798495 UNEMPLOYMENT

Total MN UI FUND UNEMPLOYMENT 84060r a

Paid Chk 067126G a

4282014 MPCArn e

a

E60249450332 Conference Training 6000 9900035648 WWCONFfRAINING

Total MPCA 6000

Paid Chk 067127 4282014 MUNICIPAL CODE CORPORATION

E 10141940300 Professional Srvs 65000 00241173 CHPROF SRVS

Total MUNICIPAL CODE CORPORATION 65000

Paid Chk 067128 4282014 NB AREA PUBLIC SCHOOLS

E 10143000212 Motor Fuels 36179 PWMOTOR FUEL

E10145000212 Motor Fuels 8182 PARKSMOTOR FUEL

E10142400212 Motor Fuels 7598 BLDGMOTOR FUEL

E 10142110212 Motor Fuels 236220 PDMOTOR FUEL

E 60249450212 Motor Fuels 16977 WWMOTORFUEL

Tota l NBAREA PUBLIC SCHOOLS 305156

Paid Chk067129 4282014 NAPA AUTO PARTS

E 10142280404 RepairsMaim MachineryEquip 60024 ACT7908 FD REPAIR MAINT

Total NAPA AUTO PARTS 60024

Paid Chk 067130 4282014 NORTH BRANCH CHEVROLET

E 10142280404 RepairsMaim MachineryEquip 21158 165970 FIREREPAIRMAINTMACH

E 10142500404 RepairsMaim MachineryEquip 42392 287292 CIVIL DEF SIREN BATTERIES

Total NORTH BRANCH CHEVROLET 63550

PaidChk 067131 4282014 OLSON POWER EQUIPMENT

E 10143000404 RepairsMaim MachineryEquip 13176 107355 PWREPAIRMAINT

Total OLSON POWER EQUIPMENT 13176

PaidChk 067132 4282014 PACE ANALYTICAL SERVICES INC

E 60249450315 Testing Services 11105 141237612

E60249450315 Testing Services 9675 141237870 WWTESTING

E60249450315 Testing Services 9675 141238048

Total PACE ANALYTICAL SERVICES INC 30455

PaidChk067133 4282014 PARTS MIDWEST INC

E 10142500404 RepairsMaim MachineryEquip 54600 1101076X1 CIVIL DEF SIRENCORE EXCH

Total PARTS MIDWEST INC 54600

Paid Chk 067134nY 4282014 QUILLCORPORATIONa

E 10141940210 Operating Supplies 6434 1937128 CHGENOPER

E60949750210 Operating Supplies 18472 1973313 LSGENOPER

Total QUILL CORPORATION 24906

Paid Chk 067135 4282014 RDJ SPECIALTIES INC

E 85142280210 Operating Supplies 33483 071577

E 85142280210 Operating Supplies 21689 071651 FIREGEN OPER

Total RDJ SPECIALTIES INC 55172

PaidChk067136 4282014 STRETCHERSy

m 6

E 10142110201 NonCapitalized Equipment 103500 11084368 PDNON CAP EQUIP


Page 6


APRIL 2014


Total STRETCHERS 103500

Paid Chk 067137 4282014 SUMMIT FIRE PROTECTION

E 10142280401 RepairslMaint Buildings 30000 1311246 FIREREPAIRMAINTBLDGSPRINKLER HEAD

Total SUMMIT FIRE PROTECTION 30000

Paid Chk 087138m

4282014 SUPERIOR AUTOMOTIVE

E10143000240 Small Tools and Minor Equip 110000 PWSMTOOLS

E60249450240 Small Tools and Minor Equip 50000 WWSMTOOLS

E 10145000240 Small Tools and Minor Equip 50000 5126 PARKSSMTOOLS

Total SUPERIOR AUTOMOTIVE 210000

Paid Chk 067139 4282014 TASCHIFSKY SONS INC

E 10143000224 Street Maint Materials 24133 56308 PWSTR MAINT MATERIALS

Total TASCHIFSKY SONS INC 24133

PaidChk067140 4282014 TIMESAVER OFF SITE

E 10141910300 Professional Srvs 11100 PLANNINGPROFSRVS

E 10141400300 Professional Srvs 24100 M20461 CLERKPROFSRVS

Total TIMESAVER OFF SITE 35200

Paid Chk 067141 41282014 US BANK

E 32247000620 Fiscal Agent s Fees 45000 3641611 FISCAL AGENT FEESGOSTR RECON 2009A

Total US BANK 45000v ry

PaidChk067142 4282014 VESSCO INCvf f

E60249450404 RepairsMaim MachineryEquip 55161 59859 WWREPAIRMAINTMACH

Total VESSCO INC 55161

mPaid Chk 067143 4282014 WEST PAYMENT CENTER

E 10142110433 Dues and Subscriptions 10750 829331076 PDDUESSUBSCRIPTIONS

Total WEST PAYMENT CENTER 10750

Paid Chk 067144 41282014 WSB ASOCIATES INC

E46046500303

E 61249700303

E 10141700303

G 10121110 DeE 61249700303

E40143102303

E 60249450303

E 20146500300

E40143100303

Engineering Fees

Engineering Fees

Engineering Fees

elopers Miscellaneous

Engineering Fees

Engineering Fees

Engineering Fees

Professional Srvs

Engineering Fees

Total WSB ASOCIATES INC

30375 10 SRTS PHASEIIPJT01654700

21000 2 ENGINEERFEESPJT01654760

1100002 ENGINEER FEESPJT01654760

13800 2 PJT01654760

123550 2 MS4 SERVICESPJT02092430

220050 2 410THSTPJT01654770

18000 2 ENGINEER FEESPJT01654760

111850 4 ESSBY AUARPJT01654750

255250 8 2013 MAINTPJTPJT01654730

903875

10100 CASH 12843110


Page 7


APRIL 2014


v rtewrxriFund Summary

10100 CASH

101 GENERAL FUND 5314570201 EDA 752469208 FD EQUIP DONATION FUND 33200322 BOND 2009A STREET RECON 45000389 RENTAL PROPERTY BOND 1808172401 IMPROVEMENTMAINTPROJECTS 475300480 SAFE ROUTES TO SCHOOL 30375602 SEWER FUND 286814609 MUNICIPAL LIQUOR FUND 3847488612 STORM WATER FUND 144550

851 NON EXPENDABLE DONOR FUND 105172

12843110

MINUTES OF THE PROCEEDINGS OF THE CITYCOUNCIL OF THE CITY OF NORTH BRANCH IN THE

COUNTY OF CHISAGO AND IN THE STATE OFMINNESOTA

REGULAR SESSION

March 24 2014

CALL TO ORDER The North Branch City Council met in regular session and MayorLindquist called the meeting to order at700pm

PLEDGE OF ALLEGIANCE

ROLL CALL Councilmembers present were Kathy Blomquist Theresa Furman Ronald

Lindquist Joyce Borchardt and Trent Jensen Staff members present were CityAdministrator Konrad Planner Roberts Engineer Hankee Engineer Messner PubloicWorks Director Williams and the City Attorney Helmers

CONSENT AGENDA

Claims

Mintts Ceh n naede

Minutes nnrha nnirce

Items B and C were removed for discussion

Motion by Furman seconded by Borchardt to approve Consent Agenda Item A Allvoted AYE Motion carried

4B Minutes February 24 2014Motion by Jensen seconded by Furman to approve Minutes of February24 2014 Members voted Ayes 3 Nays 0 Abstain 2

BlomquistLindquist Motion carried

4C Minutes March 6 2014 Joint Training SessionMotion by Jensen seconded by Borchardt to approve Minutes of March 62014 Joint Training Session Members voted Ayes 4 Nays 0 Abstain

1 Furman Motion carried

PUBLIC HEARINGS

5A 410t Street ProjectThe public hearing was called to order at707pm Justin Messner fromWSB provided a project overview of the 410t Street paving project The

project anticipates paving of410 Street from CR 30 to 1000 feet past the

intersection of Hemingway Avenue Additional considerations for theCouncil tp discuss would be paving an 8 foot shoulder on the south side ofstreet from CR 30 to Roger Johnson Park and paving of a 4 foot shoulderfrom the park to Walker Hill development Furman expressed

cer

City Council Minutes

March 24 2014

Page 2

about parking alehg the roadway if it is not signed for no parkingLindquist said that the first assessment property is missing last name

Blomquist is in favor of the four foot paved shoulders to provide safety for

walking Furman said that she does not think that the property on

Hemingway should be assessed Hankee indicated that the property isable to be divided and has applies policy but Council can change theassessment Konrad indicated there will be another public hearing on

assessments if this project moves forward This meeting is to determinewhether to move forward to the next step

Konrad noted that Donna Slipka called to say she was opposed to theamount of the assessmentbecause her driveway access is on

Hemingway

Mathew Munson of 40852 Greystone asked where the estimates came

from Hankee indicated they were estimates based on past projects

Jason Aaron 40911 Gutherie Avenue said he and his neighbor are in

support ofthe project He believes that the parking 8 foot at RogerJohnson is needed to provide safety for those walking in the area

John Pelton of 86448 410x Street asked about the assessment of6000plus and how residents are supposed to pay for that Messner indicatedthat they can be paid in full in November of the year or can be paid over

15 years through property taxes There are also property tax deferrals for

military seniors and disabled or agricultural

Mr Pelton asked if there is a guarantee that the State will pay their portionof this project Messner indicated that there is a balance in the State Aidfund and every year more money comes in

Ellen Johnson 6942 410x Street said that she is not in favor of thisbecause they chose to live there because of the country road She hasheard from the Councilmembers about anticipated increased speed andthat concerns her She has enjoyed being able to walk and ride her bikeon that road and she feels that will change and she is sorry to see it goMs Johnson asked if there is a cap on this cost Hankee indicated thatthe assessment would not be over6500 Hankee explained that thecost benefit analysis meant the proposed assessment went down to1800 for those that are not directly on 410th Ms Johnson said that sheappreciates the maintenance done on the road to keep it nice

Scott Bauman 40928 Greystone Avenue said he and his wife support the

project He then said that it is important to have the paved walking area

for folks to be able to safely walk or run along the road


March 24 2014

Page 3

Tim Grahams 40855 Gutherie Avenue said he and his wife support the

paving project He then said that the road is hard on his vehicles and the

speed can be addressed after it is paved He then said that he is

wondering if the DNR can help out paving a trail from 30 to GutherieWSB indicated that the DNR only funds regional trails Mr Grahams said

he would be okay with being assessed a little more to accommodate those

that cannot pay They need the road paved and there is a benefit to the

entire neighborhood

Joe Scaramel 7170 407h Street said he lives south of410 and when the

development went in it was in the five year plan for paving so it has been a

long time coming to pave the area Mr Scaramel said he is concerned

with maintenance but said he believes that the paved shoulder is neededfor safety

Jessie Arsvold 3638 410 said they did not mind the dirt road when theybought the property but the dust has become a major issue so the pavingwill be a great benefit to them and they support the project

Laurie Pinsonneault 40957 Greystone said she is for the project She

then said she is concerned with the heavy truck traffic that can destroy the

road if it is not controlled or if the road is not built to handle it

John VonLange of 6530 Elm Street said that back in 1998 when the Citydid the Cedar Street improvement it was the first time he heard about

benefitting properties He then said he has a problem with whining about

living at the end of a dirt road He further said that there is farmland out

there and they are not benefitting a darn thing The people who are

benefitting are the people with the lowest assessment based on policiesHe thinks this is about fairness The people moved out there they should

pay more for paving and the farmers should not be smacked with a hugeassessment because some folks who moved to the end of a dirt road dont

like dust

Emil Dahlberg of Cassleberry Drive said that he is wondering what has

taken so long to get this road paved as 100 vehicles per day is the

threshold for pavement and this road is way over that Mr Dahlbergbrought up that there has been some discussion of rerouting traffic to

410 around downtown to accommodate truck traffic for the proposed new

business in the business park

Ken Tessler of 40874 Gutherie Avenue said that the neighbors have been

trying to get 410 paved for a long time He then said that his grandkidswere not allowed to play outside because of the dust so he says it is time

to get the road paved He then said he is willing to pitch in to get this

paved


March 24 2014

Page 4

Resident asked for arranswer on Mr Dahlbergsquestion Lindquist said

there is no application at this time If the business comes in then optionswould be discussed Konrad indicated that the EDA is in discussions with

a company that is considering coming to North Branch Staff has

considered other options for traffic but 410h is not an option because it

does not go all the way over to Keystone

The Public hearing was closed at 747pm

Jensen would like to move forward with the project

Motion by Jensen seconded by Borchardt to adopt Resolution 01703

2414 A RESOLUTION RECEIVING THE UPDATED FEASIBILITYSTUDY FOR STREET IMPROVEMENTSAT 410T STREET FROM THE

INTERSECTION WITH FOREST BOULEVARD CSAH 30 TO THE

INTERSECTION WITH HEMINGWAY AVENUE

Blomquist asked about the paving of the shoulders and an area by RogerJohnson Park She then said shewould like to have that done as part of

the project

All voted AYE Motion carried

Motion by Jensen seconded by Blomquist to approve Resolution 01603

2414 A RESOLUTION ORDERING THE PREPARATION OF PLANSAND SPECIFICATIONS FOR STREET IMPROVEMENTS AT 410TSTREET FROM THE INTERSECTION WITH FOREST BOULEVARD

CSAH 30 TO THE INTERSECTION WITH HEMINGWAY AVENUE To

include alternates for an 8 foot shoulder between CSAH 30 RogerJohnson Park on the south side and 4 foot shoulder from Roger JohnsonPark to Walker Hill

Furman said she would be willing to look at it but will have other questionsin the future

All voted AYE Motion carried

COMMITTEECOMMISSIONS

6A PLANNING COMMISSIONAl Andersen Windows Variance

Planner Roberts provided an overview of the proposed AndersenWindows variance application They are proposing and expansionoftheir manufacturing facility and are requesting a height variance

for their storage silos

Staff recommends approval as did the Planning Commission


March 24 2014

Page 5

Dan Heinrich representing Andersen Windows explained the

proposed uses for the three silos on their site

Furman asked which variance requirements can be met with this

application Roberts explained that the strict application of the

height limit makes things very difficultoperationally

Furman said she would like to approve but she needs to

understand Mr Heinrich said that the purpose of the silo height is

to create mass flow and a shorter bulkier silo allows for separationof particles and that creates an issue operationally and the qualityof the product

Furman would like to make sure one ofthe findings is the impact to

the products they make as a consideration Furman asked for

information from the Fire Department that says they have no

concern with this development Roberts indicated he requested the

information but did not get a comment back

Lindquist said that at the Planning Commission meeting a neighborsaid he wished he would have spoken but he hears a lot of noise

from the pneumatics all the time and he is wondering if somethingcan be done about the noise

Mr Heinrich indicated that wood flour is unloaded hydraulicallyThe PVC will also be done with a pneumatic blower The noise

may be pulse cleaning They are aware of the noise ordinances

and they will remain within City requirements

Borchardt said that there are some large pine trees and she is

suggesting plantings for noise abatement Mr Heinrich indicated

that they would take that under consideration

Motion by Jensen seconded by Furman to approve Resolution

014032414 A RESOLUTION APPROVING A BUILDINGHEIGHT VARIANCE FOR THE EXPANSION OF ANDERSEN

WINDOWS MANUFACTURING FACILITY AT 39811 GOLDEN

AVENUE All voted AYE Motion carried

A2 Ordinance Amendment Industrial Zoning RegulationsPlanner Roberts outlined the proposed changes to the Industrial

Zoning District

Furman indicated she has questions with meat slaughtering

Jensen asked if there was discussion with building height and

requiring that as a conditional use permit


March 24 2014

Page 6

Lindquist said that 45 is an ordinary building he feels the 75 feet is

not very high

Furman wants to remove meat processing and slaughterhousesbecause she doesntwant that She is not in favor of this but

supports everything else

Jensen asked what is wrong with a slaughterhouse He then saidhe has no concern as long as it is under conditional use permitRoberts indicated that the slaughtering can only be as an

accessory use

Blomquist would like to remove the slaughtering She then asked

where this would fit in to be a meat market with slaughtering which

would be commercial

Lindquist would like to leave the opportunity for business to come

they want to Blomquist why does this have to be added to the

ordinance

Roberts indicated that one of the Planning Commission members

thought it would be a good addition to the Code

Blomquist is not in favor of slaughtering Blomquist said she

thought she heard no height restrictions at the PlanningCommission level Roberts indicated that he suggested a 75 foot

height limit as a compromise

Motion by Jensen seconded by Borchardt to adopt Ordinance

20814 AN ORDINANCE AMENDING INDUSTRIAL ARTICLE VDISTRICTS AND DISTRICT REGULATIONS DIVISIONS 1517SECTION 66625THROUGH 66675 INDUSTRIAL ZONING

DISTRICTS

Furman said she is voting no because of the slaughterhousesBlomquist said she is voting no because of the slaughterhousesand the height of the buildings but she appreciates the work the

Planning Commission did

After discussion members voted Ayes 3 Nays 2

FurmanBlomquist Motion carried

Motion by Jensen seconded by Borchardt to adopt Ordinance

20814SA SUMMARY ORDINANCE AMENDING INDUSTRIAL

ARTICLE V DISTRICTS AND DISTRICT REGULATIONSDIVISIONS 1517 SECTION 66625 THROUGH 66675


March 24 2014

Page 7

INDUSTRIAL ZONING DISTRICTS All voted AYE Motion

carried

Blomquist asked if the Planning Commission is going to look at the

height of houses in the zoning code Council consensus was that it

wasntneeded at this time

A3 Cartway Petition

Planner Roberts explained that the City received a petition from the

Nancy Nordal Strom Living Trust to create access to their parcelState law allows petition for a cartway if their property is landlocked

with no other means of access The cartway becomes a legalprivate means of access to a property that crosses another

personsproperty very similar to an easement What is different is

that the City becomes part of the approval process with a cartwayapplication The property adjoins Evergreen but the primarybuilding spot is away from Evergreen so to gain access to the

eastern portion of their property they are petitioning for access out

to 412th Street No details have been decided as of yet The first

step is for Council to set a public hearing to consider the cartwayrequest There should be an escrow established to cover Citycosts

Furman asked the City Attorney if the cost of giving money to the

other property owner be covered This would be a taking to her

and she wonders who sets that amount Attorney Helmers

indicated that is one of the amounts that the City sets as an

estimate The person would have to put up the money up front andthe hearing is the discussion and establishment of the location of

the cartway etc

Furman if they do not like the amount the petitioner could take the

other person to court to argue the amount Attorney Helmers said

that is possible

Furman asked if there could be a yearly fee to be paid to the

person who has to provide access over their property

Motion by Furman seconded by Jensen to set a public hearing for

June 9 2014 for the Cartway Petition All voted AYE Motion

carried

66 ECONOMIC DEVELOPMENT AUTHORITY NONE


6D WATER AND LIGHT COMMISSION


March 24 2014

Page 8

D1 Site Lease Genesis Wireless

Konrad asked that this item be tabled because this came in at the

last minute and some changes are necessary to the agreementKonrad stated if this service does not work out after the month trial

the monthly figure for being on the water tower be worked out

Motion by Jensen seconded by Furman to table until Water Lightgets the document amended All voted AYE Motion carried

D2 Minutes INFO

STAFF REPORTS

7A ENGINEERINGIPUBLIC WORKS

Al Parking Forest BoulevardKonrad indicated that now that the Pharmacy and gift store is no

longer downtown there is a consideration of no parking in front of

that business The County would be in favor and would install the

no parking signs but the City would need to do the striping

Borchardt indicated that several people brought this up to her and it

seems now is the time to provide for no parking to allow for safer

truck traffic movements in the area

Joe Skelton at 6344 Main Street and he almost was not here

tonight but a customer brought this up with him today No one told

him that this was on the Agenda and that seems rather

underhanded Mr Skelton asked why this is coming up now

There has never been an accident so why now is this a safetyconcern Mr Skelton indicated that the parking lot across the street

there is noway to get there during winter due to how the snow is

plowed There is an orthodontist that is interested in buying the

building from him and he will need parking

Lindquist asked if removal of the parking spot would jeopardize the

sale Mr Skelton said that it could but he does not know for sure

Mr Skelton said that he gave information of the owner of Nelsons

for possible joint parking

Bob Streater said hewas concerned about why Mr Skelton wasnt

notified Konrad indicated it was an oversight

Mr Streater said that doing something for the benefit of the whole

does not mean that the individual person that this affects should be

overlooked

Borchardt said she thought she followed protocol and she is sorrythere was not notification


March 24 2014

Page 9

John VonLange 6530 Elm Street said that years ago they wanted to

take parking away There has always been a problem with that

intersection Putting the stop line in place was a step to improveturning capability on that corner He is thinking that the stop line

should be extended all the way through Mr VonLange said that

taking away parking will not enhance safety it may even create a

sense of being able to take the corner faster than they should and

hitting the building He then said the police should enforce no

parking This could also affect the furniture store

Blomquist said when she went to the drug store she parked in

Nelsons parking lot and took the sidewalk She does not want to

take parking away She would like the next owner to ask for

designated parking from Nelsonsto direct foot traffic up the

sidewalk

Jensen said he can see a real cost to make this a no parking zone

for this business owner so hewould like to see more than justanecdotal evidence that this is a safety concern He wants to leave

the parking alone

Lindquist said that the northeast corner there is no parking to the

east so going north they would be equal If a lot of trucks start

heading north that could be a problem

Konrad this can be monitored and addressed in the future if it

becomes an issue Lindquist agreed but thinks there should be

some compensation for it

Mr Dahlberg asked why the City doesntwork something out with

the new buyer and get those spots designated for the other

businesses for off street parking

Furman asked about a clear cut between parking lot and sidewalk

and whether that could be done to assist with moving pedestriantraffic across the street Williams indicated they will take a look at it

for next winter

A2 Water Light LegislationBlomquist said she searched Minnesota Statutes and looked into

which cities looked into increasing Commissions She then listed

them Blomquist said that she found one from Melrose going up to

seven members and required nonresidents and more than one

City Council member Blomquist said that Melrose has the ability to

go up to 7 but they only have three Blomquist said she would like

to go with up to 5 and that is it


March 24 2014

Page 10

Jensen said up to 5 or 7 members is finewith him His onlyconcern is he would like to see the members be residents If he

could design the perfect commission there would be five and there

would be someone from Council two residents at large and two

members that are businesspersons but also residents

Bob Egan of 2d Avenue said he read Bob Barretts bill but what

scares him about being nonresident the folks do not own a piece of

property and dontpay taxes here He would like to have everyonebe on the water service too

Jensen clarified he meant user not just resident

Mr Egan said he is an employee but is on the service He then

said anonresident is not invested enough

Amy Oehlers said she went out to lunch in town and it was

mentioned to her that the Council proposed legislation to increase

Public Utilities Commission from three to five members and she is

curious about that She decided to look into it and found that in

February this request was made and when you read the bill there is

information that is not what was asked for Ms Oehlers indicated

that she is concerned that this bill was not reflective of the direction

given in an official meeting Somewhere along the line there was

direction outside of an official meeting or the legislators took it upon

themselves to change it Representative Barrett has put in writingthat he directed them to include the other things This was draftedin December but the official action was not until February 10 so

something has gone awry and that is concerning Ms Oehlers said

that she thinks remaining with three members would be the best

thing for the City The reason is it will prevent any behind the

scenes discussions going on behind the scenes because two folks

discussing violates the open meeting law Increasing to five will

change the balance of the voting with two council members so she

recommends one councilmembers Ms Oehlers said that

residency needs to be a must to serve on that commission because

that ensures that they are invested in decisions that they are made

Ms Oehlers said that direction was given to the legislators to carrya bill so either someone on the Council is giving direction behind

the scenes or the legislators are doing things on their own and that

is unethical and possibly illegal

Bob Streater said that general accusations are inappropriate so he

would like to see some facts and lay it out The open ended

accusations are inappropriate If three is the perfect size for every

board then which councilmembers should resign He then said


March 24 2014

Page 11

that everyone should be courteous and respectful Havingresidents seems to be the proper way to go but one business couldbe on the board because one vote does not make a bad decision

Mr Dahlberg said he is not in favor of this legislation proposed but

wants to get back to accountability and the mechanics of the whole

thing He would like to have an open meeting or a public hearingand have the direction developed before sending off the letter fromthe Council requesting the legislative change Mr Dahlberg would

like to keep the communications open and above board

Kirsten Kennedy of 378th Avenue said that there is a problem here

and that is transparency and the problem is silencing citizens from

participating in the political process She knows of no other citythat has moved public comment to the end of the meeting after

votes are taken Ms Kennedy said that Councilmerrtber Borchardt

tried hard to sell the water utility and now there is this drive to

change the Commission She then asked the Council to do the

business of the citizens of North Branch and move the publiccomment period back to the front of the meeting

Bob Streater said he has lived in this town for 51 years and has

seen a lot of councils come and go There is not bullying like there

has been in the past He feels this Council has been transparentMr Streater said there seems to be an agenda to label people and

he is tired of that and said it is time to work together to get the jobdone but to point fingers about things not being open is not fair and

totally inappropriate

Ms Oehlers said that Streater said she did not do her research and

does not have facts She does have facts and will provide them to

staff for distribution

Jensen suggested this is emotional and Council should move on

with business

Joe Scaramel asked if there is a problem where it needs to go upfrom three members He then asked if increasing the Commissionto more members change the response for emergencies He also

asked if there is a current problem that changing the Commission

membership would resolve

Borchardt indicated that quite often the meeting date is changedbecause one member is not available That is a concern If youwant to go to a Water Light meeting you have to get buzzed to go

through a door to get to the meeting Perhaps more open and


March 24 2014

Page 12

more opportunity would be available to watch and attend the

meetings if they move over to City Hall and they are televised

Blomquist said she was on the Water Light Commission for six

years and they knew a month in advance peoplesschedule and

that was put in the minutes There were also meetings where two

met and moved forward

Furman said that the meeting has been postponed only once this

year She then asked if the City supported this bill as is whether

the City can make the Ordinance and vary it to an amount because

she would like to not have someone on there that has a relative

within Water Light Konrad said that if that is a situation then theyshould abstain from voting

Konrad indicated she contacted the legislators and received

response that the language can still be made to the bill That beingsaid no changes are in effect until the local ordinance is amended

The language of the bill is up to seven members but the City can

choose any number up to seven

Jensen would like the legislation to say 5 and not 7

Motion by Jensen seconded by Blomquist to direct that the

language be changed to up to five members and remove languageon residency and two council members All voted AYE Motion

carried

Jensen said that the legal training class had discussion about doingbusiness with a relative if you are on the councilor Water LightCommission He would like clarification on the rules regardingnepotism with regard to voting to use or contract with familymembers or good friends and should family be working at the

Water Light if a parent or other family member is on the

Commission

Jensen asked if there is a nepotism policy Konrad said the

personnel policy does have some language about directlysupervising family members Jensen asked if the Council can

direct the Commission to have a nepotism policy or pass an

Ordinance to require it Attorney Helmers indicated he would

research the matter and get back to the Council

Furman said she was contacted by a resident who goes away for part of the winter and

uses no water but he gets a bill of5189 and it says no water usage Furman then

said that there is a minimum charge for use of water to pay for infrastructure and she is

wondering if there is something that can be done for the people who use no water


March 24 2014

Page 13

during the winter Konrad noted that even though the person is not here the City stillhas cost of maintaining and operating the system Blomquist and Lindquist indicated

that this issue has been discussed in the past

7B ADMINISTRATION NONE

7C BUILDING

7D FINANCED1 Financial Report INFO

7E LEGAL NONE

NOTICES AND COMMUNICATIONS NONE

PUBLIC COMMENT

Mic Dahlberg of Cassleberry Drive said that it is unusual to have public comment this

late He then said he has asked Council to move the public comment up to where it

was before in the meeting

John VonLange of Elm Street said that he was deprived his opportunity to comment

prior to a vote He then said that there is only one entity that has taxing authority and

that is the EDA and the Council He further said that expanding this to more members

will have ramifications and this is a way of taxation without representation Mr

VonLange said that there is a fixed cost of operation so that is why there is a minimum

charge for water whether you need it or not Mr VonLange said that going to a five

person board or not is up to the Council

Blomquist said that she is curious about moving public comment to the end She then

said that she called Rush City and they have public comment at 700pm She further

said she looked into a number of cities in the area that all have public comment at the

beginning

Motion by Blomquist to move public comment back to the beginning of the meeting to

be in conformity with all City Councils in the area

Jensen said that he is relatively new but during the first few months public comment

was abused and there was grandstanding and politics being pushed and opinions etc

being laid out in public Jensen then said he would like clear rules and timeline if

public comment is moved to the beginning of the meeting

Blomquist said she cantfind any city where the public comment is at the end There

was a motion based on the fact that the Mayor said there is a city with public comment

at the end and that does not exist

The motion died for lack of a second


March 24 2014

Page 14

Furman said this is a lot more transparent and open than it has been in the past

UNFINISHED BUSINESS NONE

NEW BUSINESS NONE

MAYOR AND COUNCIL

12A Upcoming AgendasKonrad noted that April 17 2014 there is time scheduled with the County Water

Department to discuss the Water Atlas The Planning Commission will beinvited to attend Blomquist suggested inviting Water Light Staff agreed

Motion by Jensen seconded by Furman to adjourn All voted AYE Motion carried

ADJOURNED at946pm

Respectfully submitted

Bridgitte Konrad City Administrator

jrlTOSS

North Branch City CouncilWork Session

Date of Meeting April 3 2014

Present Councilmembers Ronald Lindquist Theresa Furman Kathy BlomquistJoyce Borchardt and Trent Jensen

Also Present City Administrator Konrad Public Works Director Williams Fire Chief

Grote Police Chief Meyer Representatives from township boards

I Call To Order

The meeting was called to order at615pm

II Fire Service Meeting with the TownshipsKonrad had everyone introduce themselves Fire Chief Grote provided overview of

maintenance and equipment needs for the year Grate and Council discussed the needed

pumper and whether there is a way to purchase a used one Konrad indicated that the five

yearcontracts are up this year so during the summer there will be discussion regardingupdating the contracts and the proposed new contracts will be brought to Council this fall

Lindquist asked if there are a certain percentage of firefighters that have to be available to

man the station during the day Grote stated that the City has six firefighters within the

city to respond during the day There was a question about whether Harris would maintain

mutual aid Grote indicated that the mutual aid contract is in place with Harris

III Police Department Award PolicyPolice Chief Meyer outlined the proposed award policy The goal is to identify and define

criteria and establish formal nomination process for staff or citizens that go above and

beyond Council and staff discussed the proposed makeup of a committee and agreed to

keep the committee small There was discussion on how to define heroism and a

determination that you cannot define heroism The Council feels this is a feel good programand agreed with the staff recommendation

Furman asked if anyone is going to the League of Minnesota Cities conference in June and

said she would like to go She would like the City to pay the hotel as well Council agreed

Motion by Jensen seconded by Furman to adjourn

Adjourned at655 pm

Respectfully submitted

Bridgitte Konrad City AdministratorjrlTOSS

4C

STATE OF MINNESOTA

COUNTY OF CHISAGO

CITY OF NORTH BRANCH

Councilmember NAME offered the following Resolution and moved its adoption

RESOLUTION NO 027042814

A RESOLUTION APPROVING A TEMPORARY ONSALE LIQUOR LICENSE STREET DANCE

PERMIT AND OFFSITE GAMBLING LICENSE FOR AMERICAN LEGION POST 85

WHEREAS City Ordinances require licenses and proof of insurance for certain types of businesses

to operate within the City and

WHEREAS Minnesota Statutes requires temporary licenses for liquor sales outside of the licensed

premises and

WHEREAS the American Legion has requested approval to sell alcohol hold a street dance and

conduct gambling activities outside of their building in the parking lot located at 6439

Elm Street for Midsummer Days and

WHEREAS the event dates are June 18 through 22 2014 for their fundraising and

WHEREAS City staff has reviewed the applications and has found no issues that would warrant its

denial

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF NORTH BRANCHMINNESOTA

That the City Council hereby approves aFourDay Temporary OnSale Liquor License for the

American Legion 6439 Elm Street North Branch Minnesota subject to the followingconditions

The license will allow liquor sales in their parking lot within a fenced in area

The license period will be valid from June 19 2014 through June 22 2014

Alcohol sales must end at 1215am

The licensee must submit an ihsurance certificate to include the parking lot area

A double fence is required around the area where alcohol will be sold

2 That the City Council hereby approves aThreeDayStreet Dance Permit for the American

Legion 6439 Elm Street North Branch Minnesota subject to the following conditions

The permit will allow street dances in the parking lot within the fenced area

The permit will be valid from June 20 2014 through June 22 2014

Four North Branch Police Officers must be onsite during the street dance and karaokeat the Legionsexpense

The dance must end by 1230am

4D


Page 2 of 2

3 That the City Council hereby approves the OffSite Gambling Premises application for the

American Legion 6439 Elm Street North Branch Minnesota subject to the followingconditions

The permit authorizes bingo pulltabs raffle and paddlewheel to operate in the parkinglot within the fenced area

The permit will be valid from June 19 2014 through June 22 2014

The foregoing motion was duly seconded by Councilmember NAME and being put to vote members

voted AYE uNAY u

KATHY BLOMQUIST VOTE JOYCE BORCHARDT VOTE

THERESAFURMAN VOTE TRENTJENSEN VOTE

RONALD LINDQUIST VOTE

Passed and adopted this 28h day of April 2014


BYRonald Lindquist Mayor

ATTEST


MEMODate April 24 2014

To Mayor City Council

From Shawn Williams Public Works Director

RE Public Works Employee Probation Removal

Public Works Maintenance I employee Doug Goodwin has successfullycompleted his one year probationary period

It is my recommendation to change his job status classification fromprobationary employee to permanent full time employee

4E

umun i yJ4

City ofNorth Branchnvia StaffReport

Prepared By Ken Roberts City Planner 6408 Elm Street PO Box 910

North Branch City Hall North Branch MN 55056

Date April 22 2014

Request Conditional Use Permit Outdoor Storage for Norlite LLC

Location 6551 396th Court

INTRODUCTION

Ms Nickie Scholl of Northern Lights Steel Fabrication Norlite LLC is requesting that the City approve

a conditional use permit CUP for the property located adjacent to their site at 6551 396th Court She

is requesting the CUP so they may expand their outdoor storage area on to the adjacent propertyThe City Code requires city approval of a CUP for outdoor storage for a property in theI2zoningdistrict Please see the enclosed application and maps on pages six through eleven

BACKGROUND

On October 8 2007 the City Council adopted Resolution 125100807approving a conditional use

permit to allow outside storage for Norlite This approval was subject to four conditions Please see

the enclosed copy of the resolution on pages 13 and 14

On April 10 2014 the EDA authorized the proposed sale of082acres ofcityowned land to Norlite

for the expansion of their existing facility

On April 21 2014 the Planning Commission recommended approval of the proposed conditional use

permit and the proposed land sale for Norlite to expand their facility

REVIEW CRITERIA

Minnesota Statutes Section 462356 requires Citys to have their Planning Commission review all

proposed sales ofCityowned property and to report to the City Council as to compliance of the

proposed sale with the Comprehensive Plan Please the attached statute language on page 12

DISCUSSION

Conditional Use Permit

Ms Scholl is proposing to expand the outdoor storage area for their company to the vacant propertyto the east of their site at 6551 396th Court They now have an outdoor storage area and need more

space for the storage of materials for their business She is not now proposing any changes to the

existing officeshop building as part of this request Ms Scholl told me that they would be moving and

si

expanding the existing screening fence to enclose the additional property and adding another access

gate onto theculdesac They would be adding trap rock or gravel to the new storage area to create

a hard surface for the vehicles and materials for the business She also told methat they may want toadd more exterior lighting on the site for security purposes

The City has zoned the siteI2General Industrial To expand the outdoor storage onto this site the

applicant is requesting that the City approve a CUP for outdoor storage The I2zoning district

requires city approval of a conditional use permit for outdoor storage Under Section 6666 of the CityCode the City Council also may impose conditions in granting the conditional use permit to insure

compliance and to protect adjacent properties

FINDINGS OF FACT

In considering a request for a conditional use permit Section 6664of the City Code requires the

Planning Commission and the City Council to make a finding of fact about the request based on the

following factors I have added comments for your review

Relationship to the Citys comprehensive plan

The City has planned the site IP Industrial Park in the Comprehensive Plan The

proposed use of the site is consistent with this land use designation

2 The geographical area involved

The geographical area involved with this request is 6551 396th Court The area near the

property has a variety ofexisting land uses including industrial with outdoor storagecommercial and residential

3 The character of the surrounding area

The character of the area surrounding the proposed project includes a variety ofexistingland uses including industrial with outdoor storage commercial and residential The

proposed expansion of the existing business with additional outdoor storage should not cause

any negative effects on the character of the surrounding area

4 The availability and design capacities ofexisting or proposed utilities

This site is served with municipal utilities The proposed expanded outdoor storage does

not require any public utilities and would not put a strain oradditional burden on the

existing City facilities and services

5 Whether such a request will tend to or actually depreciate the surrounding area

Granting the request to allow the outdoor storage in this location should not depreciate or

impair the surrounding area

6 Whether the request will place an undue financial burden on the city

Granting the request for a conditional use permit for expanded outdoor storage will not

place an undue financial burden on the city as the developerowner will be making any and

all the improvements with private funds

7 Whether the request will impair an adequate supply of light and air to adjacentproperty

The expanded outdoor storage would be on a vacant site that is adjacent to their existingbuilding and an area ofoutdoor storage on the property The applicant is not now

proposing any changes to the building or to the size and shape of the existing parkingarea As such the proposed conditional use permit for the expanded outdoor storageshould not impair an adequate supply of light and air to any adjacent property

8 Whether the request will unreasonably increase the congestion in the public rightofway

The granting ofthe request for a CUP to allow outdoor storage on this site should not

significantly increase congestion in the public rightofway

9 Whether the request will increase the danger offire or endanger the public safety

Granting the request for a CUP to allow outdoor storage on this site should not increase

the danger offire or endanger public safety with its proximity to the existing public rightofways

10 Whether the request is consistent with the spirit and intent of this division

Granting the request fora CUP to allow outdoor storage on this site appears to be

consistent the spirit and intent ofthis Ordinance The proposed expanded outdoor storagefor the existing steel fabrication company on this site is consistent wifh the industrial zoningand comprehensive plan designations for this property

The proposed expanded outdoor storage should meet all the findings of fact for a conditional use

permit as required by the City Code

The City approved the original CUP in 2007 with four conditions of approval Staff is proposing similar

conditions of approval for this request plus additional conditions to help protect the public health

safety and welfare and to help minimize potential nuisances or problems that this business and

outdoor storage could create The Planning Commission however did not think that proposed

Conditions 3 and 4 were necessary and recommended that the City not include these in the approval

ApplicantsOwners Name and Address

Other Pertinent Information

Nicki and Brent Scholl

Norlite LLC

8825 245 Avenue NE

Stacy MN 55079

FinancialBudget Impacts IfAny None known at this time

Funding Sources

LongTerm ShortTerm Cosfs

Deadlines The City received the complete application materials for this project on March 21 2014

As such the deadline for City action on the requests to meet the 60day state law requirement is

May 19 2014 unless the City or the applicant requests a time extension

Requested Action

Staff is requesting that the City Council review the staff report take testimony and then make a

decision about the proposed CUP for outdoor storage for the proposed082acre property to the eastof 6551 396th Court

RECOMMENDATION

Staff is recommending that the City Council adopt Resolution No022042814on pages 1820This resolution approves a conditional use permit for outdoor storage for the082acrevacant

property east of 6551 396th Court subject to the following conditions

1 The owner meeting all City County State and Federal laws regulations and ordinances and

securing all necessary approvals permits and licenses before occupying or using this property

2 The owner or contractor receiving all necessary building permits and completing all required and

necessary site work within one year of City approval of this request by May 1 2015 Thisincludes installing screening around the expanded storage area and a compacted hard surface for

the driveways parking and storage areas

3 The owner or operator planting at least five coniferous trees between the fence and the south andeastern property lines

4 The owner shall only store trucks trailers and businessrelated materials outside on this propertyThere shall be no outside storage of tires vehicle parts inoperable vehicles debris or othermaterials that could be a nuisance or hazardous

5 All outdoor lighting shall be installed so it does not shine on the public rightofwayor cause a

nuisance to neighboring properties

6 This conditional use permit for outdoor storage applies to the082acre property to the east of6551 396th Court

7 This conditional use permit is subject to review as deemed necessary by the Planning Commissionandor City Council to insure that the owner or operator is meeting all conditions or if they decidethat approved permit requires an amendment

Voting Requirements A simple majority vote of those present is needed for City approval

Attachments

1 ApplicantsApplication Form

2 North Branch Industrial Park Map3 City Comprehensive Plan Map4 City Zoning Map5 Property Survey 396th Court

6 Aerial Photo 6551 396th Court

7 2012 State Statutes Section 462356

8 City Resolution No 125100807

9 Planning Commission Resolution 0314PLN CUP10 Planning Commission Resolution 0414PLN Land Sale11 City Council Resolution 022042814

REFERENCE INFORMATION

PRESENT ZONING 12 General Industrial

PRESENT USE Vacant

PROPOSED USE Outdoor storage for adjacent business

ADJACENT PROPERTY USE

NORTH Zoning 12 General Industrial District

Use Vacant

SOUTH Zoning R1 Single Family Residential

Use Houses across Ash Street

EAST Zoning 12 General Industrial DistrictUse Vacant and existing industrial buildings

WEST Zoning 12 General Industrial DistrictUse Existing Norlite outdoor storage yard and facility

REVIEW CRITERIA

Section 6662 I2 General Industrial existing zoningSection 6662 68 Variances Appeals Amendments and Conditional Use Permits

City of North BranchConditional Use Permit tlOn SSI 3RC I va k r

go 3 oayer s Addressb orb tJc c Ylvi 550 5

Ap canfsName Ifdiffer than owner Phonee t tGA h5i a3Dalypph t ddressas as eg3

ht iJ F

ZONINGINFORMATYN4xa

LotBIocI Subdivisionu U tV iL t QuarterQuarterSection Conn PLDI

6 Lot Size1lG tt CPY lCCPlease attach a copy of the legal descuphon of properq m question and ahst of all property owners anti their adthesscs within 350 1feet of fhe suhiectnrorn

y esect1 ono t to or m ace which applies to this project

Brief narrative description of the requeste Wow c G ko eyev c1 9w fik iS btuLtGde he vitaJl Gjccnmod Pv 5 wtwllvsww he ntrbas mowc Ylocc Avw Jv t76

a vti a L a 5 y tSriex krmas e45 wtwa aso evva 1e1a1xkue aaee Vic w C

lease attach m additional t meats necessa to es tlaie urrc nest

L hereby certify tlmt all data contained herein as well as supporting data arehuc and cmrect to the best of myIcno77wletlgeDate Z Kt

For Office Use OnlyFees

tlpprovalsTotal Pecs

7

planning Commission

Reccipt

2City Council

Date Yaid 3Resolution

V

4QDTHST

X160056526lrtiloac

399THSTAndawn NUnovs

MMI

1

rT

LYrTps

0Azo

V 160001606905 ac rry

1GO0o9600160004601 160001602u96 ac 106 ac Zugg

DnofrSiwsonInc

396TH CT

160004605 160004E05 160603194 ac 128ac 2tac

NnrtiaftC

ASH ST

4MAPFEATOREB

Available Industrial 1618acNORTH BRANCH I TAL PARK

O old nroperHes zo34a CITY OF NORTH BRANCHMNW E

iCHISAGO COUNTY

satersoo Date 0942008

6551396th Ct PID160004604

Proposed CUP

Comprehensive Land Use Plan350APONo6ces wiv NORTH BRANCH CHISAGO COUNTY MN

SCALE1300 USAPR2014

6551396th CtPID160004604

Proposed CUP

Zoning DistrictsI 350 APO Notices h su

Iv NORTH BRANCH CHISAGO COUNTY MNSCALES300 26MAR7D14

4

SKETCH DESCDIPTIDN Industrial Estates 3rd Addition FOR Norlile

Address 6557 3961h Ct PO Box 680 North Branch MN 55056

exlsiHCC gscElErmns

LotdIak1PlDUSiRWIiSiATH53RDADDIIIONCnixago000ntyAfivnew4

N OURTNro

IM3BIrck1mDSIIALCSPATEtiRDADRIONCItirtgoGuvlyAWgesala

AND

Ta1pM1OfLV19HIVtk1P1V5iAWESTATiS3RDAHRIDNChivgaCOwlyMnnew41Yiv8xnleelYavaeeWweilalY fhefollowin6 eeun3a11we

HeOinvingelepivtv WewmhEVeaNtlbl4aienv11M85qutletlyoflAeaonmweaaomermuoemoeNnnooauofwmmsfaEanwnmnumBEemenahmenomewnmreoossum4alwrnss9lrsumaNoM 39 aepeea JSmivuecl9apovdx lVUA Vahuveof 86W 6tlm0v

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aaneapvaieulub WeewWllvefaelwl4eeimuf 19swrutmuNoel9degrtt515minunf 39sewvdSWegedeWeof06Wialloihennmwunyrr6es4awaiasneueuluaiWi6

NOTES

BEARINGS SHOWN ARE ON ASSUMED DATUMFlEtp SURVEY COMPLETED pJ19I4

c9 pEN01ES GAtE POST

pENO1ES IRON MDNUM1IENT FOUNp

o DENOTES IRON MONUMENT SET

0 DENOTES TELEPHONE BO

OENDTES CATCH BASIN NORTHDENOTES CONCRETE m

pENOTES BITUMINOUSa 50

IN FELT

1 inch 50 ke4n

hereby certify that this plan survey ar roport was prepared byantler my direct superWsion and ibat I om a duly Licensed

Hnd Surveyor under the lows o the State of Minnesota

RIC R VICKARYDUS potoMarch 27 2014 Reg No 44125

N894314W

396T C 19142

93418 N892345E rur MI6

L 5503 i14572

it w15p421 i ry9v IDmin 9 UtIItY 1 Easementv Nw

g157 g5I

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wowi 6511 11 i

BLOCK 1cc I6 I

L Jtc0004 Easement 144A6 Ominge UIIy Easunenl 16399

t 50888

N895806W sun t mi a sleek 1

t4Y Corner of Lt 4 Block I n

ss

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II

I Issteel Fon

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GEe Lot 4 Slock 1 GEe0PP Industrial Estates 3rd Addition 0PP a

4fNORTH BRANCH CHISAGO COUNTY MN

sTiaaoo DnteoNc

22 innertStatutes

462356PROCEDi7RE TO EFFECT PLAN GENERALLY

Subdivision 1 Recommendations for plan execution Upon the recommendation by the plamring agency of

the comprehensive municipal plan or sections thereof the planning agency shall study and propose to the governingbody reasonable and practicable means for putting the plan or section ofthe plan into effect Subject to the limitations

of the followingsections such means include but are not limited to zoning regulations regulations for the

subdivision of land an official map aprogram for coordination ofthe normal public improvements and services of

the municipality urban renewal and a capital improvements program

Subd 2 Compliance with plan After acomprehensive municipal plan or section thereof has been

recommended by the planning agency and a copy filed with the governing body no publicly owned interest in real

property within the municipality shall be acquired or disposed of nor shall airy capital improvement be authorized bythe municipality or special district or agency thereof or any other political subdivision having jurisdiction within the

municipality until after the plaiming agencyhasreviewed the proposed acquisition disposal or capital improvementand reported in writine to the eovernina body or of er special districty po jtical divisi ncerned its

f4odnuarn romnliance ofthe proposed acquisition disposal or improvement with thec9nprphensive municipaln Failure of the platming agency to report on the proposalvvlIIn45zlays aftersuch a reference or such other

period as maybe designated by the governing body shall be deemedto have satisfied the requirements of this

subdivision The governing body may by resolution adopted bytwothirds vote dispense with the requirements of this

subdivision when in its judgment it finds that the proposed acquisition or disposal of real property orcapitalimprovement has no relationship to the comprehensive municipal plan

IStnry 70 SSi7IcFcF

I v

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIOFFICE OF COUNTY RECORgER

y

Chicago County Minnesota CI hereby certify that fhls document was filed in thls officeon 10192007 at 113646AM and was dulyrecorded as document numberA491352THORA G FISKO County RecorderbyDeputy

Well Certificate Received Not Required

Received Iromlreturn to

CITY OP NORTH BRANCHPO BOX 910NORTH BRANCH MN 55056

PeesRECGCOMPLIANCE FUND Si 100STATE GENERAL FUND 7050TECHNOLOGY FUND 1000

GENERAL ABSTRACT 1450Total 54600

STATE OF MINNESOTA

COUNTY OF CHISAGO


Councilmember Erickson offered the following Resolution and moved its adoption


A RESOLUTION APPROVING THE CONDITIONAL USE PERMIT APPLICATIONSUBMITTED BY AHO CONSTRUCTION FOR OUTSIDE STORAGE IN THE t2

GENERAL INDUSTRIAL DISTRICT

WHEREAS Aho Construction has submitted a request for a Conditional Use Permit for

outside storage and

WHEREAS the property for which the Conditional Use Permit is requested is located

east of Golden Avenue and south of 396 Court and legally described as

follows

Lot 5 Block 1 Industrial Estates 3rd Addition and

WHEREAS the Planning Commission at its September 18 2007 meeting reviewed

the staff report for the Conditional Use Permit request and recommends

approval of the Conditional Use Permit and

WHEREAS the North Branch City Council reviewed the staff report regarding theConditional Use Permit

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF NORTH

BRANCH MINNESOTA

That the Conditional Use Permit request submitted by Aho Construction to allow outside

storage be approved subject to the conditions listed

1 All City County State and Federal laemis and IIenses be securedshall

be complied with and all necessary p

2 All areas where products will be stored shall be at least Class V

3 A minimum of 5 deciduous trees shall be planted between the fence and

the south property line

4 The screening shall be installed no later than June 1 2008

Nu7Mr

Q

The foregoing motion was duly seconded by Councilmember Furman and being put to

vote members voted AYE 4 NAY 0 ABSENT 1

KATHY BLOMOUIST AYE LAWRENCE ERICKSON AYE

THERESA FURMAN AYE GLORIA KARSKY AYE

AMY OEHLERS ABSENT

Passed and adopted this 8T day of October 2007


Gloria Ka cy Mayor

ATTESTRyChel Gaust City Clerk

T

STATE OF MINNESOTA

COUNTY OF CHISAGO


Commissioner Brorchardt offered the following Resolution and moved its adoption

RESOLUTION NO 0314PLN

A RESOLUTION RECOMMENDING THAT THE NORTH BRANCH CITY COUNCIL APPROVE A

CONDITIONAL USE PERMIT FOR OUTDOOR STORAGE FOR THE EXPANSION OF NORLITE AT

6551 396T COURT

WHEREAS Ms Nicki Scholl has submitted a request for a conditional use permit for outdoor storage for a

property in theI2General Industrial District and

WHEREAS the property for which the conditional use permit is requested is the proposed082acre

parcel located east of 6551 396hCourt and

WHEREAS the Planning Commission held a public hearing on April 21 2014 to consider the conditional

use permit and

WHEREAS the Planning Commission reviewed the staff report and recommends approval of the

conditional use permit for outdoor storage

NOW THEREFORE BE IT RESOLVED BY THE NORTH BRANCH PLANNING COMMISSION

That the Planning Commission recommends to the North Branch City Council that they approve

the conditional use permit for outdoor storage as requested by Ms Nickie Scholl for the proposed082acre property east of 6651 396hCourt for the following reasons

I The proposed outdoor storage would be consistent with the Citys industrial land use

designation for this site2 The proposed outdoor storage should be compatible with the geographical area and

with the character of the surrounding area

3 The proposed outdoor storage would not put a strain or additional burden on the

existing City facilities and services4 Granting the request to allow outdoor storage in this location should not depreciate or

impair the surrounding area

5 The proposed outdoor storage will not place an undue financial burden on the City6 The proposed outdoor storage should not impair an adequate supply of light and air to

any adjacent property7 The granting of the request to allowoutdoor storage at this location should not

significantly increase congestion in the public rightofway8 Granting the request to allow outdoor storage should not increase the danger of fire or

endanger public safety with its proximity to the existing public rightofways

Granting the request to allow the proposed outdoor storage in this location is consistent

with the spirit and intent of this Ordinance

That the Planning Commission recommends to the City Council that they approve the

conditional use permit for outdoor storage submitted by Ms Nicki Scholl for the vacant

property next to 6551 396hCourt subject to the following conditions

The owner meeting all City County State and Federal laws regulations and ordinances and

securing all necessary approvals permits and licenses before occupying or using this

property

The owner or contractor receiving all necessary building permits and completing all requiredand necessary site work within one year of City approval of this request by May 1 2015This includes installing screening around the expanded storage area and a compacted hardsurface for the driveways parking and storage areas

3 All outdoor lighting shall be installed so it does not shine on the public rightofway or cause a


4 This conditional use permit for outdoor storage applies to the082acre property to the east of6551 396r Court

5 This conditional use permit is subject to review as deemed necessary by the PlanningCommission andor City Council to insure that the owner or operator is meeting all conditions

or if they decide that approved permit requires an amendment

The foregoing motion wasduly seconded by Commissioner Swanson and being put to vote members

voted AYE4NAY 0 ABSENT 1

TOM BORCHARDT AYE JOHN W VON LANCE AYE

BRIAN BELFIELD AYE MARK RAMALEY ABSENT

DON SWANSON AYE

Passed and adopted this 21st day April 2014


JOHN W VON LANCECHAIR

ATTESTKen Roberts City Planner

I

STATE OF MINNESOTA

CHISAGO COUNTY


Commissioner Brochardt offered the following resolution and moved its adoption

RESOLUTION NO 0414PLN

A RESOLUTION FINDING THAT PROPOSED LAND SALE FOR THE082ACRE PROPERTY TO THE

EAST OF 6551 396TH COURT WOULD BE CONSISTENT WITH THE CITYSCOMPREHENSIVE PLAN

AND THAT THE CITY COUNCIL SHOULD APPROVE THE PROPOSED LAND SALE

WHEREAS on March 20 2014 Ms Nicki Scholl representing Norlite LLC submitted an application for a

conditional use permit apreliminary site plan and a letter of interest to purchase the082acrecityownedland to the east of their existing facility at 6551 396 Street and

WHEREAS state statutes require Citys with the Comprehensive Plans to have their PlanningCommission review such a proposed sale of Cityowned property to ensure compliance with the

Comprehensive Plan and

WHEREAS the Planning Commission reviewed this request on April 21 2014 and

WHEREAS the Planning Commission reviewed the staff report and finds that the proposed land sale

would be consistent with the Citys Comprehensive Plan

NOW THEREFORE BE IT RESOLVED BY THE NORTH BRANCH MINNESOTA PLANNING

COMMISSION

That the Planning Commission finds that the proposed land sale would be consistent with the

Citys Comprehensive Plan and that the City Economic Development Authority EDA should

approve the land sale for construction of the expanded outdoor storage area for Norlite

The foregoing motion was duly seconded by Commissioner Swanson and being put to vote members

voted AYE 4 NAY 0 ABSENT 1

BRIAN BELFIELD AYE TOM BORCHARDT AYE

DON SWANSON AYE JOHN W VON LANGE AYE

MARK RAMALEY ABSENT

Passed and adopted this 21st day of April 2014


JOHN W VON LANGE

ATTESTRoberts City Planner

17

STATE OF MINNESOTA

COUNTY OF CHISAGO


Councilmember offered the following Resolution and moved its adoption


A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR THE EXPANSION OF

OUTDOOR STORAGE FOR NORLITE STEEL AT 6551 396TH COURT

WHEREAS Ms Nicki Scholl has submitted a request for a conditional use permit for outdoor storage for a

property in theI2General Industrial District and

WHEREAS the property for which the conditional use permit is requested is the082acre propertyeast of 6551 396th Court and

WHEREAS the legal description for the property in question is

That part of Lot 4 Block 1 INDUSTRIAL ESTATES 3RD ADDITION Chisago County Minnesota

lying westerly and southwesterly of the following described line

Beginning at a point on the south line of said Lot 4 distant 14485feet easterly of the southwest

corner thereof thence North 00 degrees 01 minutes 54 seconds East assumed bearingperpendicular to the south line of said Lot 4 a distance of 19594feet thence North 39 degrees 25

minutes 39 seconds West a distance of 8600feet to the northwesterly line of said Lot 4 and said line

there terminating In City of North Branch Chisago County

WHEREAS the Planning Commission held a public hearing on April 21 2014 to consider the conditional

use permit and

WHEREAS the Planning Commission reviewed the staff report and recommended approval of the

conditional use permit


Page 2 of 3

WHEREAS the City Council has reviewed the staff report and have found that the proposedconditional use permit for outdoor storage would meet the findings for conditional uses as outlined in

the City Code

NOW THEREFORE BE IT RESOLVED BY THE NORTH BRANCH MINNESOTA CITY

COUNCIL

That the City Council hereby approves a conditional use permit for the expanded outdoor storage for

Norlite Steel for the082acre property east of 6551 396Th Court for the following reasons

1 The proposed outdoor storage would be consistent with the Citys industrial land use designationfor this site

2 The proposed outdoor storage would not put a strain or additional burden on the existing Cityfacilities and services

3 Granting the request to allow outdoor storage in this location should not depreciate or impair the

surrounding area

4 The proposed outdoor storage will not place an undue financial burden on the City5 The proposed outdoor storage should not impair an adequate supply of light and air to any

adjacent property6 The granting of the request to allow outdoor storage at this location should not significantly

increase congestion in the public rightofway7 Granting the request to allow outdoor storage should not increase the danger of fire or endanger

public safety with its proximity to the existing public rightofways8 Granting the request to allow the proposed outdoor storage in this location is consistent with the

spirit and intent of this Ordinance

The City Council hereby approves the conditional use permit for the expanded outdoor storage for

Norlite Steel for the property east of 6551 396hCourt subject to the following conditions

1 The owner meeting all City County State and Federal laws regulations and ordinances and

securing all necessary approvals permits and licenses before occupying or using this property

2 The owner or contractor receiving all necessary building permits and completing all required and

necessary site work within one year of City approval of this request by May 1 2015 This

includes installing screening around the expanded storage area and acompacted hard surface

for the driveways parking and storage areas

3 The owner or operator planting at least five coniferous trees between the fence and the south and

eastern property lines

4 The owner shall only store trucks trailers and businessrelated materials outside on this propertyThere shall be no outside storage of tires vehicle parts inoperable vehicles debris or other

materials that could be a nuisance or hazardous

5 All outdoor lighting shall be installed so it does not shine on the public rightofway or cause a


6 This conditional use permit for outdoorstorage applies to the082acre property to the east of

6551 396 Court


Page 3 of 3

7 This conditional use permit is subject to review as deemed necessary by the PlanningCommission andor City Council to insure that the owner or operator is meeting all conditions or if

they decide that approved permit requires an amendment

The motion for the adoption of the foregoing Resolution was duly seconded by Councilmember

and being put to vote members voted

AYE NAY

KATHY BLOMOUIST JOYCE BORCHARDT

THERESAFURMAN TRENTJENSEN

RONALD LINDQUIST

Passed and adopted this 28th day of April 28 2014



ATTEST


r7

City ofNorth BranchStaffReport

Prepared By Ken Roberts City Planner

Date April 22 2014

Subject Cartway Petition Estimated Costs

Location 4991 412rh Street

unrten X994

BACKGROUND

On February 24 2014 the City received a petition from the attorney representing the NancyNordal Strom Living Trust the property owners requesting that the City establish a cartwayacross an adjacent property The cartway if approved would provide access to the petitionersproperty across a neighboring property Please see the petition and related materials on pages

313

On March 24 2014 the City Council approved an order that set the public hearing for the

cartway petition for the Nancy Nordal Strom Living Trust for Monday June 9 2014 The CityCouncil also made a requirement that the petitioner to submit to the City escrow funds sufficient

to cover all Cityrelated expenses to review and analyze their cartway request

DiscussionAnalysis

State law allows property owners to petition townships and cities to establish a cartway on their

behalf if their property is landlocked and if they have no other means of access to a public road or

street A cartway serves as a legal private means of access to a property that crosses another

property similar to an easement I have attached adocument from the Minnesota Association of

Townships that helps explain cartways titled Understanding Cartways Please see this information

on pages 16 through 24

In this case the petitioner claims they have no access to and from the public street Evergreen

Avenue that is adjacent to their property for most of their property because of the existing wetlands

and water levels of Chain Lake South To gain access to the eastern part of their property the

petitioner wants a cartway to cross the property between the petitionersproperty and 412hStreet

4991 412hStreet owned by Mitchell Carlson Please see the maps on pages 14 and 15

There are several steps that the City the petitioner and the adjacent property will face as part of the

cartway process The City Council set a public hearing to consider the cartway request for June 9

2014 Before the City holds the public hearing the City should require the petitioner to post an

escrow with the City to cover all casts survey legal appraisal etc related to their petition The

City is not required nor should the City pay for any of these costs or expenses for the establishment

or maintenance of a cartway The City Engineer provided staff with an estimate of8160 to

complete the engineering survey work andrightofservices for this request Please see hisamail

on pages 25 and 26 The city should require the petitioner to provide an escrow of at least10200

125 percent of8160 to cover all these costs

6A2

IssueslConcerns

ApplicantsOwners Name and Address City Of North Branch6408 Elm StreetNorth Branch MN 55056


Advanfages

Disadvantages

FinancialBudgetImpacts IfAny Such a project uses limited staff time to completeFunding Sources


Deadlines None

Requested Action

City staff is requesting that the City Council review the staff report and related materials about

the costs for processing the cartway petition and be prepared to set a dollar amount of the

escrow the city will require for this petition

Staff Recommendation

Staff is recommending that the City Council approve Resolution 023042814This resolution

requires the petitioner provide the city with an escrow of10200 to cover all Cityrelatedexpenses to review and analyze their cartway request for the Nancy Nordal Strom Living Trust


Attachments

1 Cartway Petition

2 Section 43537of Minnesota Statutes Easement for Cartway3 Definition of Navigable Waters

4 LocationZoning Map of affected properties5 Site MapAerial Photo of affected properties6 Understanding Cartways dated April 25 2006

7 Email from Justin Messner dated April 14 2014

8 City Council Resolution 023042814

1

STATE OF MINNESOTAEE6 2 4 2014


COUNTY OF CHISAGO

Inthe Matter of the Petition of

Nancy Nordal Strom Living Trust PETITION

for the establishment of acartway

TO The City Council ofNorth Branch Chisago County Minnesota

Your Petitioner atrustee ofthe above named trust represents and states the following

1 That the Nancy Nordal Strom Living Trust is the owner of the following

described property located in the City of North Branch County of Chisago State of Minnesota

and legally described as follows towit

LOT TWO 2BLOCK ONE 1 CHAINLAKE VIEW

2 That the Petitionersland abovedescribed exceeds five 5 acres

3 That the Petitioner does not have access to most of this land abovedescribed

429 acres of the 529 acre lot except over the lands ofothers namely

THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTEROF SECTION 6 TOWNSHIP 35 RANGE 21 CHISAGO COUNTYMINNESOTA

4 That said property is owned by Mitchell D Carlson and Penny J Pliscott 4991

412th Street North Branch Minnesota 55056

5 That the Petitioner has access via Evergreen Avenue to only 10 acres of the 529

acres of land comprising Lot 2 Block 1 Chain Lake View hereinafter Lot 2 Attached

hereto for reference as Exhibit A is acopy of the plat map for Chain Lake View

6 That access to 429acres of Petitioners land with shoreline along Chain Lake via

Evergreen Avenue the only public road adjoining Lot 2 across the ten acre arm of Lot 2 is

yIT7fdvlltll1

prohibited due to a low area which traverses the entire ten acre tract and which lies below the

Ordinary High Water Level OHW of Chain Lake 9075 feet and is deemed to part of the

lake basin Attached hereto for reference as Exhibit B is Lake Water Level Report for Chain

Lake from the DNR website establishing OHW at 9075 feet and as Exhibit C a topographical

map encompassing Lot 2

7 That construction of a private road across land below the OHW of a lake is

prohibited under Minnesota Public Waters Work Permit Rules 61150190 Attached hereto as

Exhibit D is acopy of the letter received from the Area Hydrologist at the Department ofNatural

Resources Craig Wills stating that construction of aprivate road below the OHW of Chain Lake

is prohibited

8 That under the cartway statute according to Minnesota case law a township or as

in this case a city council must provide a landowner with meaningful access to the bulk of the

Petitionersusable land See State ex rel Rose v Town of Greenwood 220 Minn 508 20

NW2d345 1945Iennedy v Perin Townsh ofWabasha County 784NW2d378 Minn

2010

9 That because aprivate road cannot be constructed across the 10 acre atm of Lot

2 the Petitioner does not have meaningful access to the bulk of its usable land via Evergreen

Avenue

10 That all of the properties described above lie within the City of North Branch

County of Chisago State ofMinnesota

11 That the proposed cartway will connect the bulk of the Petifionersusable land

contained in the abovedescribed parcel to 412h Street apublic road

12 That the description of the proposed cartway is as follows a 33 foot wide

cartway from the Petitioners parcel of land to 412 Street centered on a line approximately 440

feet east of and running the length of and parallel to the western boundary of the southwest

quarter ofthe southeast quarter of section 6 Township 35 Range 21

WHEREFORE your Petitioner prays that the City Council of North Branch establish a

cartway as described above pursuant to Minn Stat 43537 and designate it as a private

driveway

Dated e 2014

Eric Strom Petitioner

Notary Public

iJ

Subscribe d sworn to before methisday of uc 2014

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Lake water level report Minnesota DNR

Lake water level reportLake name Chain South PortionWater Level Data

Period of record 09161993 to

10111993of readings 3

Highest recorded 90527ft

09301993Lowest recorded 90521ft

09161993Recorded range 006 ftLast reading 90525ft

10111993Ordinary High Water Level

OHW elevation 9075ft

Datum NGVD 29 ft

Page 1 of 2

County Chisago

AeuNtf Ylftelttel

YH t d m 1011SJ0

u No data sn date range tvr Cham iso Parhonl 130663911

Last 10 years of data click to enlargeDownload lake level data as

dBase ASCII If you have trouble try right clicking on the appropriate link

and choosing the Save As option

Benchmarks

Elevation 40685ft Datum NGVD 29 ftDate Set 09161993 Location T35R21S6

Description Top north end 18 corrugated metal pipe between north and south portions of

Chain Lake found 02under groundElevation 91455ft Datum NGVD 29 ftDate Set 09161993 Location T35R21 S6

Description NOTE7208field search revealed former PP with BM has been replacedInplace horizontal 60d spike 04above ground in north side of a power pole first pole westof connection between north and south portions of Chain Lake on south side Co Rd 66


Description Seta 38x8 spike at a 45 degree angle in notched north base of a 17

cottonwood 36 south of centerline Co Rd 66 first large cottonwood east of old connection

where north and south portions of lake are closest NOTE On71008this tree was measuredat22and the spike in its base was grown over considerably and not chopped out

Elevation 91441ft Datum NGVD 29 ftDate Set 07022008 Location T35R2156

Description 38x 6 spike in N side approx 15above groundof1st utilitypole03037 on

south side of 412th St W of narrows area between the two sections of Chain Lake Set byarea hydro on 71208surveyed by Waters survey crew on71008


Description 38x 6spike08above groundin N side in 22cottonwood E of narrow area

between the two sections of Chain Lake 28 S of centerline 412th St Set by area hydro on

7208surveyed by Waters survey crew on71008

Elevation 91036ft Datum NGVD 29 ft

httpwwwdnrstatemnuslakefindshowlevelhtmlid13006302 1262013

Minnesota DNR Page 1 of

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Nlas Displayed Mark NorkhBranch

nesota Department of Natwal Resources Equal opportunity Employer mszntie e9cuveasa3eseaaesaersaeaaakamecesaanrmaasis e

Eseoa6 @s

Minnesota Department of Natural ResourcesEcological and Water Resources Division

800 Oak Savanna Lane SW

Cambridge MN 55008

7636897100

January 14 2014

Nathan P FuglestadBoyce Law Offices LLC

6349 Main Street

PO Box 277North Branch Minnesota 55056

Minnesota

CEPAATtdENT OFNATURAL AESOUflCES

Re Construction ofprivate road below ordinary high water level of Chain Lake

13006302 Chisago County

Dear Mr Fuglestad

Per your letter received by this office on December 26 2013 regarding the parceldescribed as east of Evergreen Avenue and consisting ofLot 2 ofBlock 1 PIN110012802 An ordinary high water level was established by the Minnesota DNR forthe South Basin ofChain Lake 13006302 in 1993 The ordinary high water levelestablished was 9075NGVD 29

A DNR public waters work is required to place fill in a lake many watercourses and

public waters wetlands State rules specificallyrohibitplacement offill into a water

body by an individual or oreanization to create upland areas

Minnesota Public Waters Work Rules 6115 0190 subpart 3F specifically rohibits

placement offill to

F to construct aroadway or pathway or create or improve land accesses from

peripheral shorelands to islands or to facilitate land transportation across thewaters however when a project is proposed by a federal state or local

1

government agency and this provision would prevent or reshict the project or

create a major conflict with other public purposes or interests the commissioner

may waive this provision i

1 there is no other feasible and practical alternative to the project that wouldhave less environmental impact and

2 the public need for the project rules out the nobuildalternative

Fill below the ordinary high water level of9075NGVD of Chain Lake for the purpose ofconstructing aprivate road is prohibited by MN Public Waters Work Permit Rules61150190

nmdnrgovAn Equal Opportunity Employor

DNR Information 6512966157 18886466367 6512965484 18006573929

Please feel free to contact me with any quesfions you may have I can be reached at 763

6897100

Sincerer L1

g Wills

Area Hydrologist

cc Craig Mell Chisago SWCD

Ken Roberts City ofNorth BranchJeffFertig Chisago CountyThomas Hingsberger USACOETodd Langevin MN DNR Conservation Officer

Dan Lais MN DNR EWR District Manager

t

ORDER POR HEARING

NOTICE is hereby given that City Council ofNorth Branch will meet on the

day of 2014 m at the City Hall of North Branch

for the purpose of considering apetition for a cartway for access over the route set forth below

and for hearing all reasons for or against said proposed cartway for access on the route set forth

below and to act upon said petition Said proposed cartway for access as described in the petition

is as follows

Cartwav for Access

A 33 foot wide cartway from Petitioners parcel of land to 412hStreet running the length

and parallel to the western boundary of the southwest quarter of the southeast quarter of section

6 Township 35 Range 21 The only tract of land through which the said cartway will pass and

the ownersandor occupantsthereof as nearly as we can determine the same are as follows

NAME ADDRESS

Mitchell D Carlson 4991 412hSheet

North Branch MN 55056

Judicial Review

Any affected landowner is entitled to a judicial review of damages need and purpose

under Minn Stat 16407 subd 7 following adetermination to establish acartway

Dated


By

7J242014 435372013 Minnesota Statutes

2013 Minnesota Statutes

43537EASEMENT FOR CARTWAY

Subdivision 1 Mandatoiyestablishment conditions a Upon petition presentedto the city council by the owner ofa tract of land containing at least five acres who has no

access thereto except over anavigable waterway or over the lands of others orwhoseaccess thereto is less than two rods in width the city council by resolution shall establish a

cartway at least two rods wide connecting the petitioners land with apublic road

b The city council may select an alternative route other than that petitioned for ifthealternative is deemed Uy the city council to be less disruptive and damaging to the affected

landowners and in the publics best interest

c The amount ofdamages must be paid by the petitioner to the city before the

cartway is opened For the purposes of this subdivision damages means the compensationif arty awarded to the owner ofthe land upon which the cartway is established together withthe cost ofprofessional and other services hearing costs adminisUativecosts recordingcosts and other costs and expenses that the city may incur in connection with the

proceedings for the establislunent ofthe cartway The city council may by resolution requirethe petitioner to post abond or other security acceptable to the city council for the totalestimated damages before the city council takes action on the petition

d The city may not expend sheet or bridge funds on the cariway unless the citycouncil by resolution determines that an expenditure is in the public interest Ifno

resolution is adopted to that effect the grading or other construction work and themaintenance of the cartway is the responsibility ofthe petitioner

eAfter the cattwayhas been conshucted the city council mayby resolution

designate the cartway as aprivate driveway with the written consent of the affected

landowner in which case from the effective date ofthe resolution no town road and bridgefunds may be expended for maintenance ofthethiveway

Subd 2 Maintenance costs When acutway is not maintained bythe city one or

more ofthe private property owners who own land adj acent to a cartway or one or more ofthe private property owners who has no access to the ownersland except byway ofthe

caraway may maintain the cartway The cost of maintenance must be equitably divided

among all ofthe private property owners who own land adjacent to the cartway and all ofthe private property owners who have no access to their land except byway of the cartwayThe following factors maybe taken into consideration when determining an equitable shareofmaintenance expenses the frequency ofuse the type and weight ofthevehicles or

equipment and the distance traveled on the caraway to the individuals property The citycouncil may determine the maintenance costs to be apportioned to each private propertyowner if the private property owners cannot agree on the division ofthe costs The citycouncilsdecision maybe appealed within 30 days to the district court ofthe county inwhich the cartway is located Private property owners who pay the cost ofmaintenance haveacivil cause ofaction against any of the private property owners who refuse to pay thenshare ofthe maintenance cost

Subd 3 City defined For purposes ofthis section city includes statutory andhome rule charter cifies

Subd 4 Procedure For the purposes ofthis section the proceedings of the citycouncil shall be in accordance with the procedures set forth in section 16407 except thatreferences in section 16407to town town clerk town board or town costs shall be

construed to mean references to city city clerk city council m city costsrespectively m equivalent terms as required by the context Cryr

History 2006 c 236 alt 1 s 3 2009 c 30 mt3 s 3 Zhttpslwwwredsorlegstatemnusstatutesid43537 12

Navigable Waters legal definition ofNavigable Waters Navigable Waters synonyms bytPage 1 of 2

thefreedictionarycom

Navigable Waters

Wafers that provide a channel for commerce and transportation ofpeople and goods

Under US law bodies of water are distinguished according to their use The distinction is particularly importantin the case ofsocalled navigable waters which are used for business or transportation Jurisdiction over

navigable waters belongs to the federal government rather than states or municipalities The federal

government can determine how the waters are used by whom and under what conditions It also has the

power to alter the waters such as by dredging or building dams Generally a state or private property owner

who is inconvenienced by such work has no remedy against the federal government unless state or privateproperly itself is taken if such property is taken the laws of Eminent Domain would apply which may lead to

compensation for the landowner

The basis for federal jurisdiction over navigable waters lies in the USConstitution Since the early nineteenth

century the US Supreme Court has held that the Commerce Clause Article 1 Section 8 gives the federal

government extensive authority to regulate interstate commerce This view originated in 1824 in the landmarkcase of ciagoNS v ocoEN 22 US 9 Wheat 1 6 L Ed 23 In Gibbons the Court was faced with decidingwhether to give precedence to a state or federal law for the licensing of vessels It ruled that navigation ofvessels in and out ofthe ports of the nation is a form of interstate commerce and thus federal law must take

precedence This decision led to the contemporary exercise of broad federal power over navigable waters and

in countless other areas of interstate commerce

In practical terms federal regulation of navigable waters takes many forms One area of this regulation covers

matters of transportation and commerce for example rules governing the licensing of ships and the dumping ofwaste A second area applies to the alteration of the navigable waters which is strictly controlled by federal law

The Rivers and Harbors Appropriation Act of 1899 forbids building any unauthorized obstruction to the nations

navigable waters and gives enforcement powers to the USArmy Corps of Engineers A third area of regulationinvolves Workers Compensation claims The concept of navigable waters is important in claims made underthe Longshore and Harbor Workers Compensation Act of 1988 33 USCA 901950 The act providesthat employers are liable for injuries to sailors that occur upon navigable waters of the United States

The vast body offederal regulation concerning navigable waters frequently gives rise to litigation and in manycases the courts have the difficult job of determining whether particular bodies of water are navigable and thus

subject to the law or regulation in question Lakes and rivers are generally considered navigable waters but

smaller bodies of water may also be navigable Attempting to address years of problematic litigation the US

Supreme Courtin 1979 created four tests for determining what constitutes navigable waters Established in

KaiserAetna v United States 444 US 164 100 S Ct 383 62 L Ed 2d 332 the tests ask whether the bodyofwater 1 is subject to the ebb and flow of the tide 2 connects with acontinuous interstate waterway 3has navigable capacity and 4 is actually navigable Using these tests courts have held that bodies of water

much smaller than lakes and rivers also constitute navigable waters Even shallow streams that are traversable

only by canoe have met the test

Further readings

Annotated Federal Statutes of Limitation Title33Navigation and Navigable Waters 1995 Southwestern

University Law Review 24 winter

Arnold Alvin L 1993 Navigable Waters Four Tests to Determine Navigability ReaEstateLaw Report 22

January

Kullman Aimee P 1994 Expanding the ScopeofNavigable Waters under the LHWCA Tulane Maritime

Law Journal 19 winter

cFm5

httplegaldictionarythefreedictionarycompNavigable20Waters 2242014

Minnesota Association of Townships DocnmentNnmber TR12000

Informa8on Library Revised April25 2006

UNllERSTANDETGCARTWAYSCus

A WORIfSHEBTkOREb1AB7SHINGCARTWAYS

byTroy 7 Gilchrist Attorney

One ofthe many unique aspects oftowu government is the ability of town boards to

establishcartways cartways are themselves unique in that they share characteristics ofpublicroads and private driveways The statutes do not specifically define what a cartway is and the

statute providing for the creation ofcartways is itself apparently inconsistent on the nature of

cartways Irt many ways the best we can do to understand cartways is to understand the basic

purpose they serve the situations in which they can be created the process that must be followed

to create them and thetownsobligation over cartways once they are established To aid in this

understanding the following will briefly discuss these various issues However it should be

noted that the unique natuteof cartways alsotends to htvolve avariety ofunique circumstances

that cannot be covered in this discussion

There are four methods for establishing cartway two are by owner dedication and the

other two are by town board establishment Carlways are most often raised in the context ofthe

town being petitioned to establish a carhvayto provide access to landlocked property As suchthis paper will focus on the establishment of cartways to landlocked property and includes a

worksheet that outlines the procedure Additional information on cartways can be found in

Document Number TR12500 on the Information Library

CREATION BYDEDICATION

1 DIRECT DEDICATION BY OWNER Minn Stet 16415

Owners ofproperty may dedzcate thew land for acartway by filing a written applicationwith the town board Minn Stet 16415 subd I The application must describe the land the

purpose ofthe dedication and must be filedvvith the town clerk Once the application is filed

the town beard has 10 days to decide whether to accept the dedication Ifthe board decides to

accept the dedication it must do so by passing a resolution Refer to Appendix E ofthe Road

Establishment and Extinguishment Document Document Number TR4000E for a sampleapplication for dedicating land fot a road and a sample acceptanceresohrtionbothdocuments

would need to be modified to reflect tltatthe land is being dedicated for a cartway instead ofa

road Once accepted the Land is deemed duly dedicated for cartway purposes and no damagesmay be assessed or allowed for thecaztway

2 GENERAL DEDICATION OI LAND TO THE PUBLIC Minn Stet 16411

For many years there has existed a curious statute consisting ofasingle sentence

indicating thatland dedicated to public use as a sneet road or cartway ifnot less than 30 feet

1v1Il tLJ

1

in width shall be deemed a legal cartway Minn Stat 16411This statute is interestingbecause it purportedly encompasses dedications made to the public expressly for streets or roads

purposes As long as the land dedicated is at least 30 feet wide the statute deems thededication

as having established a cartway The question then becomes whatis the effect ofthe law

deeming road dedications as creating carlways Such a discussion could take many paths but for

the purposes ofthis paper the discussion will be limited to the single largest group ofpublic road

dedications land dedicated by plat for public road purposes

Those who develop large Tracts ofopen land often do so by creating a plat that divides

the lauds into Lots roads parks etc Roads are drawn on the plat and are usually labeled as

being dedicated to the public for road purposes Minn Stat 50501 50502 Once the platgoes through the zoning approval process and is recorded the roads in the plat are deemed

dedicated to the local government and are held in trust in its ztame until the board decides to open

and maintain the roads Because these roads are typically 66 feetwide and are dedicated to the

public as roads applying Minn Stat 16411would mean they are to be deemed legal cartways

Without setting out the fitll analysis it appears the following would hold true ofroads

dedicated tothe public byplat 1 they are deemed legalcutways Minn Stat 164112 they are open for public use upon dedication even iftheboard chooses to notyet open and

maintain them as public roads 3they are maintained by those who use them until the town

boazdpasses aresohrtiat determining the public interest warrants it to take it over and maintain

it as a town road Minn Stat 16408 subd 3 and 4 before the town board decides to open

and maintain a platted road as a public road the town electors can petition for a vote at the

annual town meoting on whether thetown should spend public funds on the road Minn Star

16410

C12EATION 131 TOWNESTABLISHMENT

There are two sihzations in which an owner ofland may petition a town board for the

establishment ofa cartway The first involves a request for a field access road to tillable land

The second involves anowner asking for the establishment ofa cartway to provide access to

land that is landlocked One ofthe most important distinctions between these two methods is

that the establishment ofa field access cartway under the fast method is discretionary with the

town board but the establishment ofa cartway to landlocked property is mandatory ifthe

statutory criteria are satisfied A description of each method is set out below

3ESTABLISHIlVG AFIELD ACCSSMinn Stat 16408subd 1

Purposes AIthough it is rarely used subdivision 1 ofMinu Stat 16408allows the creation

ofa cartway for the purpose ofproviding access to land ofa certain size with a minimum

number oftillable acres

Onalifyhta Criteria 1 The pact or tracts ofland to be served by the cartway must consist of

at least 150 acres ofwhich at least 100 acres are tillable 2 The cartway cazmot be snore than

2

17

onehalfmile in length 3The cartway must be two rods wide and 4 The caraway must be on

a section line

Petition Requirement The petition requesting the cartway must be signed by at least five

people who own Landwithin the town and ue eligible to vote at the towtt election

EstablishmentProcedure The town board passes aresolution granting the cartway then

folows the procedure in Minn Stat 16407 to establish the cartway

Additional Information 1 The board is not required to grant petitions requesting caraways of

this type 2This subdivision contains no provision for placing the cost ofestablishing or

constructing The cartway on the ownershowever the board should not spend any public funds

on a cartway ofthis type unless itpasses a resolution fmdutg the public interest requires the

expenditure and 3Remember that these cartways must be placed on the section Tina and

cannot be more than onehalfmile in length

4 ESTABLISIIING ACCESS TO LANDLOCIbPROPERTX Mims Slat 16408subd 2

Parnose To provide access to landlocked property of acertain minimum size

Oualifyina Criteria 1 The parcel of land to be served by the cartway must contain at least

five acres or ifit wasa separatettact of land as ofJanuary 1 1998 contain at least two acres

and 2 the parcel ofland either has no access except over a navigable waterway or over the

lands of othersie is landlocked or whose only access is less than two rods wide

Petition Requirements The petition must be signed by the owner ofthe andiocked parcel At

aminimum the cartway petition should contain the following a clear statement requesting a

cartway the size and description ofthe land to be served ifthe parcel is between two to five

acres a statement on whether the parcel was ofrecord as ofJauuaty 1 1998 that the person is

laudloclced adescription ofthe parcels thatwillbe using the cartway as access the width

desired minimum width is 33 feet and the desired route for the cartway

Mandatory Ifthe owner qualifies the town board must establish the cartway provided the

person complies with file requirement to pay all the costs associated with establishing the

cartway including providing the board a bond for the entire estimated costs ofthe establishtnent

ifthe board so requires Horton v Township ofHelen 624NW2d591 594 Minn App

2001

Costs Bond The petitioner is required to pay all costs related to the establishment ofthe

cartway including any damages that must be paid to other owners to acquire the neccssuy

easements the boards attorney fees and any other professional and other services hearingcosts administrative costs recording costs and other costs and expenses which the town may

incw in connection with the proceedings for the establishtnent ofthe cartway The petitioner is

required to pay the costs before the caraway is opened

U

The board may by resolution require the petitioner to post a bond or other security for the total

estimated costs befotethe board takes any action on the petition No town road and bridge funds

are to be expended on these cartways unless the board by resolution fords that the expenditureis in the public interest

Placement The petitioner eau indicate where he or she would like the carlway located The

Attorney GeneralsOffice has indicated that the board is generally obligated to follow the wishes

ofthe petitioner with respect to the beginning and ending points ofthe cattway as well as its

general course However in 1993 subdivision 2 was amended to allow the board to alter the

requested location ofthe cattway ifthe alternative is deemed by the town board to be less

disruptive and damaging to the affected landowners and in the publics interest Before a board

attempts to change a requested route it must adopt specific findings offact establishing why the

new route is less disruptive than the requested route The carlway must connect the petitionersland with a public road

PuhIicPrivateNafura Generally railways atepublic and may be used in the same manner as

town roads See RaskvTown Board ofI3endrum 218 NW 115 Minn 1928 It is however

possible to designate a carlway as a private driveway once it has been constructed The

designation is made by board resolution and it must be accompanied by the written consent of

the affected landownersOnce the designation is made the board isptohibited from spendingany road and bridge funds on the driveway The statute also indicates cartways designated as

private driveways can only be vacated through the procedure provided in Miun Stet 16407

The effect ofdesignating a carlway aptivato driveway is not expressly set out in the statute

However it presumably allows the affected owners to prohibituse ofthe carlway by the generalpublic Whether adjacent land owners can continue to use a carlway after it is designated a

ptivate driveway is not clear but boards must keep inmind this possibility and address it before

passing the resolution

Tandlocked Determination Determining ifa tract ofland is landlocked can be much more

difficult than itmight seem Even if there is no access to the property the courts have saidthat a

tract may not be landlocked if there exists aright to assert an easement by necessity or an

easement has been granted Roemer v Board ofSuprs ofElsign Tp LeSuenr County 167

NW2d 497 Minn 1969 However land may be entitled to a cartway even ifit does have

access

Access by NavieableTIaletway Waterhas traditional not been considered ameans of

access to property sufficient to defeat a determhtation that a property is landlocked The

Minnesota Supreme Cotut reversed that common understanding in a 2003 decision In its In re

Danielb56NW2d543 Minn 2003 decision the court held that access by navigable waters

could be considered sufficient access to land Jtt the case the court upheld a finding that an

owner whose sole access to his land wasover navigable waters Lake Vermillion had sufficient

access and so wasnoteligible to receive a carlway Much ofthe courts ratiolal focused on a

historical perspective that at the time the carlway statute waseteated that many owners accessed

their land by water In 2004 the legislahue clarified that statute by indicating that access to land

by anavigable watetway did not melee an owner ineligible to petition for or receive arailway

The clarification went into effect on July 1 2004

4

Neither the court nor the Iegislatutedefned navigable waterway for the purposes ofthe

caraway statute butthe importance ofthe definition has become less important since the

legislahne has indicated that water access does not defeat a catlway petition Ifan owner with

access via a navigable waterway is eligible to petition for a caraway then it stands to reason that

an owner with access viaanonnavigable waterway would also be eligible to bring acattway

petition

Impracticable Access Ifthe only access to the property is impracticable the owners

may clahn that they are landlocked Ifthere are natural obstacles to accessing the property such

as very steep terrain orwater which make it unreasonable to expect the person to construct an

access courts have found that the person may be entitled to a cattway State Ex Rel Rose v

Town ofGreenwood 20NW2d345 348 Minn 1945 Schacht vTown ofHyde Park 1998

WL 202655 Minn App 1998 Op Atty Gen 37761June 13 1938

LandAlvirledbyaRiver There is no settled rule on how atown is to handle a petitionfrom an owner thathas access to then land but has at least five acres of their land that is

landlocked because it is divided from the rest ofthe property by a river As stated above an

owner isto be considered landlocked even if they have access by navigable water However

Chat still does not resolve the question ofwhether an owner is entitled to a cartway to access an

isolated portion ofthe property when the property as awhole has access

Ifthe property is separated by ariver of any size the owner cettainly could argue that

their direct access is impractical making the property only accessible overnavigable waterway

or over the lands ofothers On the othet hand the caraway stahrte does not speak ofprovidingaccess to every portion ofa parcel ofpropery It seems likely tho legislaturesprimary concern

wascreating au oppothmity for people to simply gain access to their land not to provide

tnultiple accesses as needed to avoid all natural barriers on the Iand

The attorney generalsoffice issued an opinion itt 1954 essentially saying that itwas

legithnate for the town board to find that a 1012acre portion ofan 80 acreparcel is landlocked

and eligible for acattway OpAttyGen377B1Aug 17 1954 IC seems that ifa board is

presented with a petition ofthistype it could exercise its legislative discretion to decide whether

or not the owner is eligible for a caraway to the isolated piece oftheir property

Access over aPrivate Road The fact that owners have used a private read to gain access

to their property in the past even ifthe Toad has been used for many years does not necessarilymean they have a legal access The board nmst attempt to determine ifthe owners have a legalright to use the road eg has a private easement leading to their property or at least has a rightto assert a legal access See Roemer v Board ofSuprsofEI5 Sian T LeSuetu Coun 167

NW2d497 Minn 1969 However using a private road for a long period of time anay not giverise to a right to continue to use it as access

Procedure Upon fmding that the petitioner meets the qualifying criteria the boatdfollows flte

Minn Stet 16407procedure to establish the caraway

Construction Maintenance A town Uoard is prohibited from spending public fimds to

construct or maintain acartway unless itpasses a resolution specifically determining that the

expenditure is in the public interest Ifsuch a resolution is not adopted the cost of constructinggrading and maintaining the cartway is the responsibility ofthe petitioner

VThen the town does not maintain a cartway the owners adjacent to the cartway or those

who rely on the cartway as the only means of access to their land are responsible for maintainingthe cartway Minn Sfat 16408 subd 3 The cost ofmaintenance must be equitably divided

among all of the adjacent owners and all the owners who have uo access to their land except by

way ofthe cartway Wlten determining an equitable division ofthe maintenance costs the

following factors maybe considered thefiequency ofuse the type and weight ofthe vehicles or

equipment used and the distance traveled on the cartway

Ifthe owners cannot agree on the division ofcosts the town board may make the

determination The boardsdetermination is to be based on the above listed factors An owner

may appeal the boardsdecision within 30 days Co the district court Eaclt of the owners

responsible for the maintenance costs have acivil cause ofaction against any other responsibleownerwho refuses to pay his or her share ofthe maintemwce costs

Petition for Public Maintenance When a town board has refused to spend public funds to

maintain acartway a petition signed by at least ten taxpayers ofthe town can be brought to the

board requesting public fimds be allocated toward the maintenance ofa particular cartway

Minn Stat 1641D Ifa petition is received the board is required to submit the question to the

electors at the annual muting The statute indicates due notice is required but does not

explain what type ofnotice satisfies this requirement As such it is recommended that the

question to be submitted be included in the notice ofthe annual meeting Ifa majority vote in

favor ofthe pefltion requesting the allocation offunds the Uoard is required to spend road and

bridge funds to maintain the cartway

Cartways between Townships Adjoining town boards znay by johst resolution establish a

cartway which begins iu atetown and ends in the other Minn Stet 16409 The cartway

must serve attact or tracts of land consisting ofat least five acres that has mo access to a publicroad except over the lands ofothers The towns may enter into an agzeement to divide the cost

and responsibility for conshlicting and maintaining the cartway Joint construction conhacts

may Ue let to cover all or part of the work to be performed

AdditionalTzzlormation 1 There is no established maximum width for these carlways but

they must be at lease two rods wide 2 Cartways providing access to landlocked property do

not necessarily need to be located on a section line and they can extend beyond onehalfmile

3 Submezged land is cmisidetedwhoa determining whether the owner has at Ioast five acres

Stanton Cron ClubvIownofShetek Murray County 176NW2d544 Minn 1970 4 The

cartway must connect the petitioners land to a public road Mina Slat 16408subd 2a

Z

WORKSHEET FOR ESTABLISHING A CARTWAY

TO LANDLOCKED PROPERTY

byTroy 7Gilchrist

There are two situations in which an owner may petition a town board to establish a

cartway The first situation deals with cartways to provide access totillable land of certain

minimum size Minn Stat 16408subd 1 Such petitions are extremely rareand will not be

discussed in this worksheet The other situation deals with a petition for a cartway to provideaccess to landlocked property Minn Stat 16408 subd 2

The followingwill provide an overview oftheinitial procedures to petition for and

establish a cartway Because the caztway establishment proceduze relies on the town road

establishment procedure in Mitm Stat 16407this worksheetwill discuss the steps unique to

cartways and then refer readers to the worksheet for establishing roads Document Number

TR4000A for the remainder ofthe procedure

NOTE Ifyour board receives apetition requesting a cartway that appears to be

valid on its face hue an attorney preferably someone familiar with cartways or at

least town roads to assist the board in working tluough the statutozy procedure

1 The town board receives a petition SeeAPP1gDIX A from an owner or owners

whose propezty satisfies one ofthe following two sets ofcriteria

1 The property contains at least five acres that either has no access to it

except over a navigable waterway over the lauds of othersie is

landlocked or has an access that is less thantwo rods wide or

2 the property was a separate parcel ofrecord as ofJanuary 1 1998 that

contahts between two and fiveaczes and has no access to it except over

the lands ofothers

2 The Board determines whetherthe petition is sufficientieIis signed by the

owner ofthe landlocked parcel 2 the property satisfies one of the two groups of

criteria set outin step one above and3 the petition clearly expresses the intent

ofttte petitiozer

Ifthe petitioner qualifies under the statute the board is ret7uiterf to

establish the cartway

A eaztway petition only needs to be signed by the owner ofthe landlocked

parcel unlike a road petition that requires at Least eight signaturesHowever keep in mind that there tnay be other owners in the immediate

area who may also be landlocked In such cases the board may wish to

contact those owners to pwsue consolidating the request to avoid havingto undertake a separate process to provide them access

It is important fur the board toexplain the petitioners financial obligationassociated with requesting a cartway early in the process The potentialcost involved niayremotivate the person to seek a private easement from

the neighbors The neighbors also have an incentive to grant the easement

since they will likely end up with a public cartway across their propetty if

they refuse

3 The board tray pass aresolution requiring thepetitioner to provide the board a

bond or other security acceptable to the board for the total estimated damagesSee APPENDIX B

Damages are defined broadly to include all the expenses incurred in

establishing the cartway including the boardsattorney fees surveyor

fees if a survey is conducted hearing costs administrative costs and

compensation that rnusC be paid to the owners whose land is being taken to

establish the cartway

Itis recommended that the board utilize this option because petitionershave been known to back out ofthe procedure before the cartway was

established but after the board had incartedsignificant costs Such

withdrawals leave the board with no directway ofseeking reimbursement

short ofgoing to court

No fiuther action is taken oat the petition until the regrtired bond or other

security is submitted and approved

4 The board follows the procedures contained in Minn Stet 16407subd212 to

actually establish the cartway See Document Number TR4000A for a

worksheeton the procedure for establishing altering and vacating roads

Ifthe cartway involves land iu another township refer to Minu Stet

16409

5 The cartway may not be fmally established or opened until the petitioner pays the

achial damages incurred to the board Minn Stat 16408subd 2

6 The petitioner is responsible for constructing and maintaining the cartway No

public fiords may be spent on a cartway unless the board specifically finds byresolution that such an expenditure is hr the public interest Minn Stet 16408

subd 2

7 Upontvttttenconsent ofthe affected landowner the board rnrry by resolution

Z

designate the cartway a private driveway after it has been constructed SeeAPPENDIX C Unless and until such a resolution is passed the cartway maybeused by the public

If a resolution is passed be sure to keep it on file The board may also

want to record itwith the county recorder

liven ifa cartway is made a private driveway it may not be vacated unless

the town board vacates ittluough its normal vacation procedure in Minn

Star 16407

8 Ifthe board has decided not to spend public fiords on a cartway a petition may be

brought by at least ten taxpayers ofthe town asking for the issue to be submitted

to the electors at the annual meeting Minn Star 16410Ifasufeient petitionis brought the petition ntnsl bebrought to the annual meeting andput to a vote

A majority voting on the issue decides whether the petition is approved or denied

Ifapproved the board is required to spend fonds to rnaintaiu rite cartway

cinorthbrauchmnusMail Carfway Estimate for EngineeringRight of Way Services Page 1 of 2

e Ken Roberts kenr@cinorthbranchmnusr iM

Cartway Estimate for EngineeringRight of Way Services1 message

Justin Messner jmessner@wsbengcom Mon Apr 14 2014 at 1143AM

To Ken Roberts kenr@cinorthbranchmnusCc Diane Hankee DHankee@wsbengcom Bridgitte Konrad bridgittek@cinorthbranchmnus

Ken

The following is the estimate of engineering survey right of way and appraisal services needed for the

cartway project

Engineerinq

800 Project ManagementCoordinationReview

Survey

600 Title Work need 12weeks

1190SurveyLegal DescriptionsSketch

620 Staking

Riaht ofWay Services

2200 Appraisal Kelly Lindstrom based on 23week turnaround Ifwe can have a34week turnaround

then could be1500

500 Review Appraisal

2250 Easement acquisition includes some general file work early notification letter Field Title ReportOffer letter negotiations and preparation of documents using template from City attorney

Total Estimate 8160 ZaG o mod

If you have any questions or need anything else please donthesitate to contact me I will also be at CityHall tomorrow

Thank you 77

httpsmailooglecommailui2ik02c1cb93b5viewptsearchinboxth145611421 2014

cinorthbranchmnusMail Cartway Estimate for EngineeringRightof Way Services Page 2 of2

Justin Messner PE

Municipal Project Managerd 6512868465 c 6123889652

WSB Associates Inc 477 Temperance Street St Paul MN 55101

WSB and McGhie Betts lnc have joined forces McGhie Betts is now a Division of

WSB providing a presence in Rochesterand Northfield MN

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This email and any files transmitted with it is confidential and is intentletl solely forthe use of the addressee Ifyou are

not the addressee please delete this email Isomyoursystem Any useof this emailby unintended recipients is strictly

prohibited WSB Associates Inc does not accept liability forany errorsoromissions which arise as aresult of

electronic t2nsrnissionIveriication is required please request a hard copy

2

httpsmaiLgooglecornmaiUui2ik02c1cb93b5viewptsearchinboxth145611421 2014

STATE OF MINNESOTA

COUNTY OF CHISAGO




A RESOLUTION APPROVING AN ESCROW DEPOSIT OF 10200 FROM THE

NANCY NORDAL STROM LIVING TRUST TO COVER THE CITYSCOSTS FOR

REVIEWING AND ANALYZING A CARTWAY PETITION AT 4991 412TH STREET

WHEREAS the Nancy Nordal Strom Living Trust submitted a petition to the City of North Branch

for a cartway to provide them access to their property that is adjacent to the propertyat 4991 412jh Street and

WHEREAS the City Council reviewed the cartway petition on March 24 2014 and set a

public hearing for the request for June 9 2014 and

WHEREAS the City Council also made a requirement that the petitioner submit to the Cityescrow funds sufficient enough to cover all cityrelated expenses to review and

analyze the cartway petition and

WHEREAS the City Engineer has estimated that the costs for reviewing and analyzing the

cartway petition will be8160 and

WHEREAS the City is requiring a deposit of10200 125 percent of the estimated costs to

review and analyze this request

WHEREAS the City Council has set a public hearing for June 9 2014 to consider the cartwaypetition and

WHEREAS the City Council has reviewed the staff report and the related information about

the escrow and have found that the proposed escrow amount should be 10200to cover the costs for reviewing and analyzing the cartway petition

2


Page 2 of 2

NOW THEREFORE BE IT RESOLVED BY THE NORTH BRANCH MINNESOTA CITY

COUNCIL

That the City Council hereby approves the staff recommendation that the petitioner of the

cartway request submit 10200 to the City before staff proceeds with review and analysis of the

request and before the public hearing as an escrow to cover the costs of reviewing and

analyzing the cartway request

The motion for the adoption of the foregoing resolution was duly seconded by Councilmemberand being put to vote members voted AYE NAY

KATHY BLOMOUIST JOYCE BORCHARDT

THERESA FURMAN TRENT JENSEN

RONALD LINDQUIST

Passed and adopted this 28th day of April 2014


BY

Ronald Lindquist Mayor

ATTEST


Z

City ofNorth Branchumva 994 StaffReport

Prepared By Ken Roberts City Planner

Date April 24 2014

Request Planning Commission Membership Requirements

INTRODUCTION

Planning Commission Chairperson John W von Lange asked staff to put the matter of cityresidency and Planning Commission membership on the agenda for review and discussion

Section2208 of the City Code now requires planning commission members to be residents of

the City Please see the attached City Code language on pages three and four

BACKGROUND

On April 21 2014 the Planning Commission reviewed the idea of allowing nonresidents to

serve on the Planning Commission After much discussion the Planning Commission

recommended that the City Council change the City Code to allow residents property owners

and business owners to serve on the Planning Commission

DISCUSSION

Sections2208 through2210 of the City Code outline appointments procedures and the duties

and powers of the Planning Commission As I noted above the City Code now requiresPlanning Commission members to be residents of North Branch This is a very typicalrequirement of most cities as they want people on their boards and commissions that have a

vested interest in their respective locality that they will help plan and create In addition it is

unlikely that a resident of Lent Township or Harris would want to serve on the North Branch

Planning Commission The City Code does not have any residency requirements for

membership on the Economic Development Authority EDA

Information from the League of Minnesota Cities about Planning Commissions notes that State

statute does not require planning commissioners reside within the City It is up to the City to

determine what if any residency requirements they want for their boards and commissions

Please see this information on page five

I also have attached an article from the April 2014 Planning magazine titled Composition and

Function of the Planning Commission This article on pages six and seven providesadditional insights into the membership of planning commissions in other cities across theUnited States

6A3


FinancialBudget Impacts If Any None known at this time

Funding Sources


Deadlines None

Requested Action

Staff is requesting that the City Council review and discuss the membership and residencyrequirements of the North Branch Planning Commission

RECOMMENDATION

Staff recommends that the City Council provide staff direction about possible changes to the

City Code about the membership and residency requirements for the North Branch PlanningCommission If the City Council wants to change the City Code staff will prepare a code

amendment for their consideration and possible action for a future meeting


Attachments

1 Sections2207 through2210 of City Code

2 PC information from League of Minnesota Cities

3 April 2014 Planning magazine article

Municode Page 1 of 2

North Branch Minnesota Code of Ordinances CODE OF ORDINANCES Chapter 2

ADMINISTRATION ARTICLE V BOARDS COMMITEES AND COMMISSIONS DIVISION 4

PLANNING COMMISSION

DIVISION 4 PLANNING COMMISSION t1

Sec2207 Established

Sec 2208 Appointment of members of commission

Sec2209 Meetinas procedures

Sec 2210 Duties and powers of the commission

Secs22112228 Reserved

Sec2207 Established

A planning commission for the city is established

Code 1996 244010

Sec2208 Appointment of members of commission

a The planning commission shall consist of five resident members appointed from the

residents of the city who are over the age of 18 excluding persons elected to public office of

the city They shall be appointed by the mayor and approved by the city council The

appointees shall serve threeyear staggered terms One or more members terms will expireannually After the expiration of the terms of each they shall be reappointed or replaced to

serve three full year terms commencing on the first day of January of the year of

appointment Upon expiration of a term the appointee shall continue until reappointed or a

successor is appointed In the event of any vacancy the mayor with the approval of the citycouncil shall appoint a person to complete the unexpired term

b A nonvoting city council member will be appointed by resolution of the city council annually to

serve as a liaison between the planning commission and the city council

Code 1996 244020Ord No 89arnd 03242004

Sec2209 Meetings procedures

a At the first regular meeting in January the planning commission shall elect achair avice

chairand secretary from among its appointed members each for a term of one year The

planning commission may create and fill such other offices as it may determine The

commission shall hold such meeting each month at such time and place as they may fix byresolution of the city council Special meetings may be called at any time by the chair or in

case of his absence by the vicechair A majority ofthe commission shall constitute a

quorum It shall adopt rules and procedures for the transaction of its business On or before

January 1 of each year the commission may submit to the city council a report of its work

during the preceding year

b No expenditures by the commission shall be made unless and until authorized for any

purpose by the city council

r

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Municode Page 2 of 2

Code 1996 244030

Sec2210 Duties and powers of the commission

a Preparation ofcomprehensive plan It shall be the purpose of the planning commission to

prepare and adopt a comprehensive plan for the physical development of the city includingproposed public buildings street arrangements and improvements efficient design of majorthoroughfares for moving of traffic parking facilities public utilities services parks and

playgrounds a general land use plan and other matters relating to the physical developmentof the city Such plan may be prepared in sections each ofwhich shall relate to the

comprehensive plan program

b Means ofexecuting plan Upon the adoption of a comprehensive plan or any section thereofit shall be the concern of the planning commission to recommend to the city council

reasonable and practicable means for putting into effect such plan or section thereof in order

that the same will serve as a pattern and guide for the orderly physical development of the

city and as a basis for judging the timely disbursements of funds to implement the objectiveMeans of effectuating the plan shall consist of azoning ordinance subdivision regulationscapital improvement programming and technical review and recommendations of matters

referred to the planning commission by the city council

c Zoning ordinance The planning commission shall review all proposed amendments to the

zoning ordinance take part in public hearings and make recommendations to the citycouncil as may be prescribed by the zoning ordinance

d Appeals The planning commission shall act as the board of appeals and adjustment and

shall have the power to review all appeals from the ruling of an administrative officer where

an error in any regulation decision or determination made by such officer in enforcing the

zoning ordinance or subdivision regulations is alleged The planning commission shall

report its recommendation to the city council for action

e Variance The planning commission shall have power to review all requests for variances to

the zoning ordinance as it applies to a particular parcel of land or use of such a parcel as

prescribed in the zoning ordinance chapter 66 The planning commission shall report its

recommendation to the city council for action

fl Special permits The planning commission may make recommendations on all requests for a

special permit under the terms of the zoning ordinance chapter 66 The commission shall

report its recommendations to the city council for action

g Subdivisions The planning commission may make recommendations in relation to the

subdividing of land as prescribed by the subdivision ordinance chapter 54 The commission

shall report its recommendations to the City council for action

Code 1996 244040State aw reference Planning commission may act as board of appeals and adjustment Minn Stats 462354

Secs22112228 Reserved

FOOTNOTES

State Law reference Planning Minn Stats 462351 et seq planning commission Minn Stats 462354

Back

hitplibrarymmicodecomprintaspx7hclientID14040HTMRequesthttp3a2o432014

RELEVANT LINKS

Semple Advertisement

Sample City Applicationpones

Semple Interview Questions

LMC Infoanation MemoResidency Regairemeats forCiry Boards and

Commissions

B Authority to appoint commissioners

State statute does not establish aprocess for the appointment of planningcommissioners As a result the city ordinance or charter provisions should

specify who has the authority to appoint commission members Generallyappointing authority is vested in the city council as awhole

In the alternative cities may vest appointment power in the mayor

exclusively or may vest in the mayor the power to appoint commissionerssubject to council approval

Some city charters may already contain provisions related to generalappointments to city boards and commissions In these cities the charter

provisions preempt local ordinance

Cities also should consider adopting apolicy for the recruitment and

retention ofcommission members The policy maybe adopted as a

resolution and need not be in ordinance form Adopting the policy via

resolution will allow more flexibility in developing and amending theordinance Although state law does not require the following the policy maywish to include information regarding

The advertisement period for open positionsThe submission of letters ofinterest and a statement of qualifications forboard positions or acity application form

An interview process prior to appointment

C Residency requirementsState statute does notrequire that planning commissioners reside within citylimits As aresultticticy ordinance should specify any residency requirementsfor serving on the planning commission Frequently cities limit eligibilityfor planning commission membership to city residents Often these citiesfeel that planning commissioners should live in the communities they planfor and create Conversely some cities may wish to allownonresidents to

serve on planning commissions to increase the pool of eligible citizens In

addition these cities may feel that property owners or business owners who

do not reside within the city may still bring a valuable perspective to the

planning commission

League of Minnesota Cities Information MemoJ

Planning Commission Guide6172013

Page 4

Composition and Function of the Planning CommissionWHO SHOULD BE A PLANNING COMMISSIONER WHAT ATTRI

butes and characteristics are the most important for awellfunctioningplanning commission These questions are frequently asked of APA the

answers mayprovide guidance for planning commissioners and planningdirectors alike

this fall APA created an informal questionnaire regarding the composition and func

tion of the planning commission and invited APA members and readers of The

Connnissioner which until last Febmary was astandalonepublication to respond We

received 88 responses from 27 states representing a snapshot of planning commissions

across the countryDo certain professions brhlg valuable expertise orperspectives to their commissions

Sixtyseven percent of respondents thinkso The most frequently cited professions of

special value were law architecture construction and development real estate engineer

ing planning and business JimPlonzynski the community developmentduector in

Bartlett Illinois notes that two members ofhis planning commission anarchitect and a

land appraiser bring particularly helpful expertise The architect is keen on reviewing site

plans Fora vanilla site plan he isvery good at suggestinghow to improve the look of the

building from the street and its compatibility withsurrounding buildingsandhis exper

tisehas influenced the perspectives of other commissionerstheland appraiser on the

other hand brings a lmowledge of property values and of costs to developers that serves as

a reality chedtas to what improvements are reasonable and financially feasible to ask

of developersWhen considering new regulations other respondents noted that commissioners from

the business sector provide perspectives on how those regulations might impact invest

ment and construction professionals can speak to the feasibility and acceptability of

proposed regulations inthat industry Another respondent reported that acommissioner

withaconstruction background helps business applicants understand the reasoningbehind certain levels of building code standards One noted that having an educator on

the commission brings a youth aad education perspective while a retiree brings an elder

issues perspective and rivo retiredciyjournalists bring specialinsight into local politicsand how thhrgs really work

These sentiments are echoed by SazaCopeland the community development director

in North Kansas City Missouri At herprevious position with Greenview Missouri her

commission was largely made up of retirees and she appreciated the institutional knowl

edge they brought to the position These

werepeople who had lived inthe commu

nitytheir whole lifetimes and brought great

knowledge about notjust what had been

done before but why those decisions had

been madelocal context that case files

dorit always include They also Imew the

people in the communityand werea greatsource of connections and knowledge

Other members bring varied and

valuable perspectves Buddy Lucero the

planning director inRiver Falls Wisconsin

notes that the educators who serve on his

commission azeconcerned about school

issues and impacts from newdevelopmentand they also read documents closely to

ensure wording is clear and understand

able to professionals and ordinary citizens

alikeperhaps aslcill honedwhile gradingpapers

Nigel Goodwin acommissionerin

Orange County Virginia notes that in his

rural area farmers areespecially valuable

commission members Since they work

with the lazed they are conservationists at

heart but they are also businessmen so

they bring an important balance of com

mercial and conservation interests Ken

Gillie the director of planning and zoningadministration inDanville Virginia ap

preciates the clergyman who serves on his

commission The realtors on the commis

sion arevery busnlessoriented focusingon what is good for the economic health of

Professions Represented on Planning Commissions

PROFESSION

eU51NE55

SELFEMPLOYED

RETIREES

REAL ESTATEDEVELOPMENT

ENGINEERINGCONSTRUCTION

FINANCE

PLANNINGURBAN DESIGN

NUMBER OF i PERCENT OF

RESPONDENTS i RESPONDENTS

41 54

31 41

27 36

24 32

SOURCEAMERICAN PLANNINGASSOCIATIONSURVEY 2013

PROFESSION

EDUCATION

ARCHITECTURE

CLERICALJBLUE COLLAR

LANDSCAPE ARCHITECTURE

HEALTH

MILITARY

LAWENFORCEMENT

YOUTH

NUMBER OF i PERCENT OF

RESPONDENTS RESPONDENTS

20 26

16 24

71 15

10 13

9 12

6 e

4 5

3 4

58 The Commissioner Apri12014

the city while the clergy looks above and

beyond revenue generation to more of a

qualityoflifeapproachwhatis good for

the people The discussions that result raise

issues that om staff doesntalways considerand its good to be taken out of our comfort

zones like thatIn some states statutory requirements

for planning commissions enable or

require localities to appoint agovernment91 official to the commission Most of the

respondentsSOpercentreportedhavingno such local governmental representationon their commissionsFor those few who

did city managers orIocaL council mem

bers were the mostcommon positions to

be represented Lucero reports that the city

engineer sits on the River Falls commission

and brings valuable technicalexpertiseThe layperson on the commission doesnt

always understand the impacts orcosts of

aproposed project to the city and future

residents but the city engineer canaddress

this and ask the questions that others

might notthink to ask

Education and training for planningcommissioners isnotofren mandated bystate or local statute only 21 percent of

respondents reported formal requirementsfor commissioner training However planningeducation sti1L occursinavariety of

ways Copeland notes that education is im

portant to her commissioners eventhoughMissouri has tro training requirementsfor commissioners on the books We tryto weave training opportunities into our

monthly meetings whether its just providing an article for them to read or putting

together a more detailed presentation with

time for QAOur commissioners want

to know moreabout planning issues rightnow the city is studying the potential for

anewstreetcar so redevelopment and

transitoriented development are at the topof their list The challenge is fitting inthe

time without overloadurg those nightsFinally when asked what factors or

attributes were the most important for

commissioners to have for optimal func

tioning of the planning commission the

overwhelming response was open minded

ness good commissioners are able to stay

objective and to consider all sides of an

issue Notes Plonczynslci In my 35 yearsinlocal government I have found that

keeping an open mindaswell as keepingpolitics out of local decision makingisvitalwhen you serve the community There

will never be total agreement on any issue

and commissioners must take into account

all factions within the commmrity and

understand all the arguments both for and

against an issue

Another trait was good listening as well

as awillingness to ask questions Treatingothers with courtesy and respect and main

taining a professional demeanor werealso

highly rated A willingness to put in the

time and effortdemanded by the positionwas likewise valuable with many respondents noting meeting preparedness as key

Another important attribute listed bymany was civicpride an interest in and

knowledge of the community and the de

sire to make itbetter As Gillie puts it Our

commissioners really care about their com

munityand what is best for the longtermfuture of the city At meetings they alwaysask What effectwill this decision have on

Danville in40 years time Respondentsalso rated highly an rmderstandurg of

planning and zoning basics along with the

importance of the comprehensive plan and

how it should guide decision malchrg for

future developmentPlanning commissions reviewed in

this survey displayed awide variety in

commission composition but several basic

themes and commonalities emerged Manyprofessions provide special expertise and

perspectives to the commission but more

important than any one profession is the

varying backgrounds and perspectivesdifferent commissioners bring to the group

Perhaps the most valuable characteristics

are the basic onesopenmindednesscourtesy and civic pride paired with an

understanding of the role of planning and

zoning inhelping to make communities

greatAnnDillemuthaicr

Dillemuth is aresearch associate withAPAsPlanningAdvisory Service

4

Who Sits on the

Planning Commission

APA ASKED respondents to indicate

which professionswererepresented on

their commissions As the table onpage57 shows morethanhalfof the respondents indicated having small business

owners retirees or theselfemployedon their commissions The real estate

engineering and construction indus

tries were also well represented Nearlya third of respondents indicated having

RELATED aplanner on their

TOPIC commission more so

than those reportingi architect 24 percent

orlandscape architect

13 percent members Also fairlywell

represented were the financial industrylawyers and educators In addition 23

respondents toldus about other professions represented on their commis

sions including farming the ministryIT community

organizing and

advertisingHas the

composition of the

planning commis

sion changed over NCLLYIy a

the years In 2005 third OfThe Commissioner reSpOndC7ran an article on

indicatedwho shouldserve

IJRTJing aon the commis

lionand also plannerprovided a look On theirbackto see what COnZ7ZZSSZ

the makeup of the

commission has

been over time

Based on surveysconducted in 1950

1965 1979 and

2002 the answeris

somewhat

Read the article and compare the

survey results at wwwplanningorgthecommissioner2005pdfsumpdf

AnnDillemuth

American Planning Association 59

4162014 cinorthbranchmnusMail Commission Request

J

t i s

Commission Request

Mark nbwlmark@windstreamnet Wed Apr 16 2014 at 1127AM

To Bridgitte Konrad bridgittek@cinorthbranchmnus

Bridgitte

At yesterdaysCommission meeting the Commission requested the City Council revisit its request for the City to

fund half of the purchase of the Bill Stuffing Mailing Machine If I remember correctly the amount was around

1500 At the time the Council considered the original request one council member was absent and the wte

was a tie two for and two against The Commission would like the Council to revisit its request with all the

Council Members present so a unanimous decision can be made

See attached original request

Thanks

Mark

l Mailing Machine city requestdocx14K

httpslmailgoogIecorNmailu0ui2iIr455591672FNetnptsearchinhoth1456b5d165dffeetsim11456b5d165dffeelsni

Date12182013

TO Bridgette Conrad

From Mark Petsche

Subject Mailing Machine

Bridgette

At last nightsCommission meeting the Commission approved the purchase of a

new Mailing Machine bill stuffing that will be replacing our existing machine that

was purchased in 2005 The cost of the new machine is2893

As you know the Utility does the billing for the Electric Water Sewer and Storm

Sewer Utilities Based on the use of this machine the Commission has directed

me to request the City participate in the purchase of the machine The cost to the

City would be1446 if it were to be split two 2 ways

This memo represents North Branch Water and Lights Commissionsrequest for

the City to participate in the purchase of this machine at a cost of1446

March 18 2014

The North Branch Water and Light Commission met in regular session Chairman

Fisk called the meeting to order at330pm Commissioners Hals and Furmanwere

present General Manager Petsche Office Clerk Kraemer and Barb Nelson

Representative from the Chisago County Senior Center were also presentPublic Comment Barb Nelson was present to ask the Commission to consider

forgiving utility bills for the period ofJune 1st through December 31St 2014 they are

trying to get Catholic CharitiesNleals on Wheels back to the North Branch Senior Center

They need3600 total in donations but figure1800would be utility bills General

Manager Petsche suggested adonation rather than giving electricity andwater She said

anything would be helpful and that she is also going to the City This will be added to our

April Agenda for discussion

Motion by Hals secondby Furman all voted aye motion carried to approve the

minutes from the February 25tt meetingFurman broughtup the monthly service fee from Associated Bank and that she had

previously asked for this to be checked into with other banks it was instructed for Ekstrom

to look into this Motion by Hals second by Furman all voted aye motion carried to

approvethe payment of bills as presentedVerizonUpdate Muske is no longer in foreclosure and Verizon is looking into an

easementGenesis Wireless Update General Manager Petsche thinks we could possibly see

asavings of2000 to3000 for their services at all the city locations Motion byFurman second by Hals all voted aye motion carried to recommend to the City to enter

intoa contract with Genesis Wireless

Purchasing aSkid Loader was discussed Petsche would like amaximum amount

that can be spent on askid loader Motion by Hals second by Furman all votedaye

motiomcarried to allow a maximum of18000 on askid loader

Wellhead Protection Petsche recommended hiring WSB to complete part 2 of the

Wellhead Protection plan they have completed part 1 so they do have all the iriformafion

Motion by Hals second by Furman all voted aye motion carried to have WSB continue

with the Wellhead Protection Plan

Donations for Concerts in the Park and North Branch Fire Department were

discussed Motion by Hals second by Furman all voted aye to donate the same amounts

as we did in 2013Furman has receivedemails from customers that have left for the winter and want

to know if the minimum utility fees can be waived because there is no water usage It was

explained to her that there is still acost for these services and she was given the rates

Motion by Fisk second by Fmmaq all voted aye motion carried to adjourn the

meeting at433pm

L

K ith R Hals Secretary

6D2


Prepared By Shawn Williams Public Works Director

Date April 22d 2014

Subject Street Crack Sealing Quotes

Background InformationAsphalt crack sealing is an extremely important part of the Cityspavement preservationmaintenance plan for the 69 miles of paved roads we currently have Crack sealingextends the road life significantly by sealing the cracks removing the depressionimproving the ride quality with the end goal of reducing potholes from forming This

year again we are doing a joint quote with the North Branch School district We will

be using a crack sealing technique called poly fiber flex patch which smoothes out the

depression caused by severe transverse cracks and we will also be utilizing the regularroute and seal method

Other Pertinent InformationStaff has received two quotes for this work Quotes include all cracks to be routed 3awide x3adeep cleaned with compressed air heat lanced to eliminate moisture filledwith rubberized crack Oller per MNDOT specification 3723 or BCI flex patch Cracks

are then covered with paper to prevent tracking and the contractors are to include all

necessary traffic control The two contractors I have received quotes from are Fahrner

Asphalt Sealers LLC located in Frederic WI and Seal Tech Inc located in CambridgeMN

Their prices are

1 Fahrner Asphaltsprice per pound2 Seal Techs price per pound

155b153Ib

With that being said it is my recommendation to accept the quote from Seal Tech as

they are the low quote per pound and also have included the trap rock used in sealingthe crack at no charge150000value

7a1

unnra i9J4

For Reference Purpose the 20i3prices were

1 Atech Companies price per pound 15562 FahrnerAsphatSeaersprice per pound i55b

Advantages1 Extends life pavement protecting the citys infrastructure investment

Z Maintains quality of ride for traffic using city streets

DisadvantagesNone

FinancialBudgetImpacts IfAny

Funding Sources

Funding for this project is included in the 2013 public works budget line item

number10143000307 crack sealing The budgeted amount is 47000 This

Project will not exceed the budgeted amount

LongTerm ShortTermCosts

DeadlineASAP so contractor can begin scheduling

Requested Action Staff Recommendation

Staff recommends council approve quote from Seal Tech for the joint crack sealingproject for the city and North Branch Schools

Voting RequirementsA simple majority of council members present

Attachments1 Quotes2 Resolution

PROPOSALCONTRACTJob No

Plover WI544672800Mecca Driue

0180033233607153412868 Fax 7153411054r 3468115th StreetFrederieW1548370Kaukauna WI 54130860 Eastline Road

0180026119009207591008 Fax 9207591019 Fax7156532553715653253518004974907Pavement Maintenance Contractors

Eau Claire W1547026615 US Hwy 12 Equal Opportunity Employer2224 Veterans Memorial Pkwy Saginaw M1488810

0180049749077158746070 Fax 7158746717 Fax98975292059897529200

Contact Name SHAWN WILLIAMS Cash Price 000

PURCHASER CITY OF NORTH BRANCH TELEPHONE 651 7558578

ADDRESS BOX 910 DESCRIPTION OF PROPERTY

NORTH BRANCH MN 55056

1 FAHRNER Asphalt SealersLLC CONTRACTOR and PURCHASER agree that CONTRACTOR shall furnish

the labor and materials to complete certain construction in accordance with the following specifications

Please review the Following joint powers bid Note that the terms are the same as last

year

Craek seal or repair with BCI lex patch material either routed or applied to level

cracks

Price per pound based on 30000 total pound minimum 155

Price to apply 18th inch Dresser trap rock i needed 400ton

Date March 312014

316 Raemisch Road Waunakee WI 535970Fax60884964706688496466188889112102

This proposal may 6e withdrawn ifnot accepted and received by CONTRACTOR within days of the dateabove and

orat any time before pertormance of tha work hereunder upon CONTRACTORSdetermination that the PURCHASER is not creditworthy

2 If proposal is accepted please sign retain one copy and forward a copy to ouroffice

g The undersigned PURCHASER agrees to pay CONTRACTOR the total price of 000 andlorthe unit prices

specified above forthe labor and materials specified above which payment shall be due upon completion of each stage of work

PURCHASER acknowledges that the specifications conditions and price quotes specified above are satisfactory and hereby accepted

Acceptance of this Proposal includes acceptance of all the terms and conditions on back

CONTRACTOR PURCHASER

Fahrner Asphalt Sealers LLC I have read and understand the terms and conditions on both sides

of this contract

PRINfT RTYPE NAME

tByCONTRACTOR REPRESENTATIVE

frLam

Date March 31 2014

By

PRINT OR TYPE NAME

PURCHASER AUTHORIZED REPRESENTATIVE

Oataof acceptance

EstimateDate Estimate

412014 194

Name Address alTch IncSeal Coating Specialist

ustin htWestlunePresiden

City of Nrn2h Branch and District 133

RojecL Crack Filling 2014

PG BOX 910Notth Branch MN 550560910

743 Pioneer Trail SE

Cambridge MN 55008

6513415975

sealtech@izoomnet

Insures

Locally Owned and Operate

5a1fsh Ins

Residential and Commercial Seal Coating CrackJoint Repair and Striping

Item Description Total

Crack Routing2R NEW CRACKS

Cracks will botoutcred 34 x 34 using a Router Machine

Cracks will he blown out and heat lanced for sterilization of cracks for proper

bondingCracks will be titled with polyflox sealantCracks will be covered with a paper barrier to preventUacking of sealant

Clean and Fill EXISTING CRACKS

Crackswillbe blown out and cleaned of all debris

Cracks will be filled with polytlex sealant to desired yvidthCracks will be covered with an 18 minus trap rock

Traffic Control Will supply safety signs and flaggers for the project

Unit price perpound of Polyflex153Ib

We look forward to doing business with you Please contact us at your earliest

convenience TOtaI 000

Insured Locally Owned and Operated Check out oweebsite at

1 wwwsealtecbiuacom forWore information

Signature Date

This estimate is good for 90 dars By signing cnsd returning this estimate it becomes a binding conhact

Affteerl percelat good faitfa down aynxerat is due at the tingeofcolatract submission

T7ewild notify yoal as to the approaimate start date

Phonea

6573415975 Email sealtech@izoomnet Web Site wwwsealtechinccom

STATE OF MINNESOTA

COUNTY OF CHISAGO




A RESOLUTION ACCEPTING THE QUOTES SUBMITTED FOR CRACK SEALING ANDAWARDING CONTRACT THEREOF

WHEREAS the City and the School District requested joint quotes for crack sealing projectsand

WHEREAS the following quotes were received for the crack sealing of City streets andSchool District facilities

Fahrner Asphalt 155 per poundSealTech 153 per pound

WHEREAS the low quote was received from Seal Tech


That the Council hereby awards the contract to Seal Tech for crack sealing of City streets and

School facilities The contract for City Streets is not to exceed 47000

The foregoing motion was duly seconded by Councilmember NAME and being put to vote

members voted AYE NAY


THERESA FURMAN V OTE TRENT JENSEN VOTERONALD LINDOUIST VOTE



BY


ATTEST



Prepared By Shawn Williams Public Works Director

Date April 24th 2014

Subject ChlorideDustControl Quotes

Background InformationThe City has approximately 33 miles of gravel roads to maintain To assist with

maintaining them chloride is applied to 10 miles of the 33 which have extremely hightraffic counts and require more maintenance such as road grading 23times per week

The application rate may vary depending on the residual carry over from the previousyear An example is that I may use a fog or light application half application rate 15

galsqyd on a road with good carry over which will allow for a second application on

the same road later during the summer The original cost per mile is the same

adjusting the application rate just allows better performance of the product and the

surface road condition to be smoother longer

Attached is the map showing the locations for Chloride to be applied for the 2013

season Also attached are the actual quotes from Tri City Paving located in Little Falls

partner with UnivarGroup MN and Envirotech Services Inc located in Savage MN

For dust suppression magnesium and calcium chlorides are the two primary productsused in the industry today We have found that the magnesium performs much better

because it can retain water moisture at a higher rate than calcium chloride which is

essential for our geographic location with temperatures ranging from 7590degreesOther benefits of magnesium are less corrosive more cost effective lasts longer bybonding better to the clay binder material in the road gravel and it is the primary dust

suppressant for gravel roads used by other local government agencies in the area

Listed below are the two quotes I have received for chloride to be applied at the rate of

15to18gallons per square yard 18 wide to the referenced roadways

Th

umcea 9J4

quote for the City and North Branch Township increasing our volume to get a better

price for both entities

1 Envirotech 95gallon2 Tri City Paving 907gallon

For reference information the 2012 quotes were

Dust Coating Inc 83galtonTri City Paving 855gallon


Advantageso Chloride not only reduces the amount of dust it saves the fine material in

the road gravel called binder otherwise known as the material that

passes the 200 sieve in a gravel gradation test The end result is

chloride prolongs the life of the gravel on the road reduces road

maintenance costs and lastly improves the safety for the traveling publicby reducing dust and improving visibility on these high traffic roadways

Disadvantageso None

FinanciallBudget Impacts If AnyFunding Sources

o The 2014 budget includes3400000 for this project


Deadline

Approval at this meeting so scheduling can begin

Requested Action Staff Recommendation

Staff recommends accepting the quote from Tricity Paving Inc

Voting RequirementsA simple majority of council members present

Attachments

1 Map showing locations

2 Quotes3 Resolution

City of North Branch 2014 Chloride ApplicationsO O O O tO o M

I b I CO wns O

3 Harder Ave

2 410th St

410THjjeveeen412th4 Hemingevay Ave

5 400th St

4aorH

6 392nd St

1 1390TH

n

8 381st St

1 1380TH

7 Eaglewood Ave

1 1370TH

360THuu0 0o

m

Map Features

Chloride

122Miles

Date 2013

9 372ndGrandfHemingway

10 360th St

I

No Street Description Length ft

l Elmcrest AVe410thStEVergreen AVe412th St 12450

2 410th Street Co Rd 30HarderAve 7305

3 HarderAve HemingwayAve420th St 5255

4 Hemingway Ave 397thSt430th St 6830

5 400th St Grand Ave Hemingway Ave 2615

6 392nd St StCroixTrlEverettAve 3280

7 Eaglewood Ave 374thSt 377th St 1310

7 381st St CO Rd 30Eto Pavement 1340

8 372ndStGrandAveHemingway Ave 840D

9 360th StCo Rd 30 Lincoln Tri 15810

NJo laoo zooo saao yooo etxa

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scAleislooo

Diulaime Eaedata an this mapis provided as iaavd does not

repreaenlasurvey NOliahilityis paYu

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ssslEArFtVdata delineated he on

KAdnwShuefaps2013SheelGave1201

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2te31tAiiiit ei Se I11R i

3fF

RE Quote Calcium Chloride 2014

Jack Surma tcp@tricitypavingcom Wed Apr 23 2014 at 346 PM

To Shawn Williams shawnw@cinorthbranchmnus

Shawn

TriCity Paving Inc will furnish and apply 38 calcium Chloride to various roads forthe complete price of

907 per gallon

lohnJaclSurma

President

TriCity Paving Inc

jdsurma@tricitypavingcom

3206325435

Ce113203604849

From Shawn Williamsmailtoshawnw@cinorthbranchmnusSent Wednesday April 23 2014333 PM

To Adam

Subject Quote Calcium Chloride

Thank you

Shawn Williams

Public Works Director

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STATE OF MINNESOTA

COUNTY OF CHISAGO




A RESOLUTION ACCEPTING THE QUOTES SUBMITTED FOR CHLORIDEIDUSTCONTROL AND AWARDING CONTRACT THEREOF

WHEREAS the City of North Branch and North Branch Township have requested jointquotes for chloridedust control and

WHEREAS the following quotes were received for the chloridedust control of City streets

EnvirotechTri City Paving

095 per gallon0907 per gallon

WHEREAS the lowest quote was submitted by Tri City Paving


That the Council hereby awards the contract to Tri City Paving for chloridedust control of Citystreets The contract is not to exceed 34000



KATHY BLOMOUIST VOTE JOYCE BORCHARDT VOTE


RONALD LINDQUIST OTE



RY


ATTEST


City ofNorth BranchStaff Report

Prepared By Andi Moffatt and Kelsey Johnson WSB Associates Inc

Copied Diane Hankee and Justin Messner City Engineers

Date April 23 2014

Subject ESSBY AUAR Update 2014

Background Information

The City of North Branch working with WSB Associates Inc has prepared an updateto the Final Alternative Urban Areawide Review for the ESSBY Site formerly the North

Branch Development Area in conformance with Minnesota Rules 44103610 An

Alternative Urban Areawide Review AUAR is a type of environmental assessment to

determine impacts on the environment over a specific geographic area that would be

cause from future development

The original AUAR was adopted by the City Council in June 2004 with an update in

2009 The purpose of this submittal is to update the AUAR so it remains valid for

another five 5 years

The ESSBY Site is approximately 393 acres

Interstate 35I35 west of CSAH 30 and

portion of the City

located south of 410th Street east of

north of Aztec Trail near the north central

The AUAR allows the flexibility to examine different development scenarios includingwhat would be allowed under the current zoning and comprehensive plan and other

development scenarios An AUAR enables cities to evaluate how much developmentcan be accommodated in an area without significant environmental impacts

An AUAR does not replace or overrule any of the normaLComprehensive Plan or zoningordinance required hearings project review or other city approvals It simply is a

vehicle for identifying and evaluating any and all potential project environmental

impacts prior to an official development application

7A3

unrtru 94

Pursuant to Minnesota Rules 44103610 Subp 7Hthe AUAR Updates was submitted

fora 10day review and comment period Comments were received from Chisago

County Department of Public Works Chisago County Department of Environmental

Services and Zoning the Minnesota Pollution Control Agency MPCA and the

Minnesota Department of Natural Resources MnDNR

Attached are the AUAR Update Agency Comments and Comment Response Matrix

Requested ActionThe City Council is asked to review the updated AUAR agency comments and

comment response matrix and approve the resolution adopting the ESSBY Alternative

Areawide Review AUAR 2014 Update

Staff RecommendationStaff recommends adoption of the ESSBY AUAR 2014 Update

Voting RequirementsA simple majority of the City Council

Attachments1 AUAR Update2 Agency Comments

3 Comment Response Matrix

STATE OF MINNESOTA

COUNTY OF CHISAGO




A RESOLUTION ADOPTING THE ESSBY ALTERNATIVE AREAWIDE REVIEW AUAR 2014 UPDATE

WHEREAS an AUAR 2014 Update has been completed for the project pursuant to Minnesota Rules

4410 and identifies and assesses the environmental impacts and mitigation measures

associated with the ESSBY area

WHEREAS the ESSBY area is located south of 410h Street east of Interstate 35I35 west of CSAH

30 and north of Aztec Trail as shown in the AUAR 2014 Update

WHEREAS the AUAR 2014 Update was updated pursuant to Minnesota Rules 44103610

WHEREAS the AUAR 2014 Update was distributed for the required 10day comment period

WHEREAS comments received on the AUAR 2014 Updatehave generated information adequate to

determine mitigation measures associated with the potential development in this area

WHEREAS the comments received and the Citys responses to these comments are included in the

public record for the AUAR 2014 Update

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF NORTH BRANCH MN

The City of North Branch adopts the ESSBY AUAR 2014 Update dated February 28 2014

The foregoing motion was duly seconded by Councilmember NAME and being put4o vote members

voted AYE NAY L1



RONALD LINDQUIST VOTE

Passed and adopted this 28h day of April 2014



ATTESTBridgitte Konrad City Administrator

FINAL ALTERNATIVE URBAN AREAWIDE REVIEW UPDATE

ESSBY SITE

Formerly the North Branch Development Area

FORTHE

CITY OF NORTH BRANCH MINNESOTA

FEBRUARY 28 2014

Prepared By

WSB Associates Inc

701 Xenia Avenue Suite 300

Minneapolis MN 55416

7635414800

City ofNorth Branch

6408 Etm Street

North Branch MN55056

651 6748113

FinnAfernntive Irhnn AremuiAeRevlerv IpAnte 1014

ESSBYSife

City nfNnrth BrmcLMN

IYSBAojectNo 1654750

Attachment 1

TABLE OF CONTENTS

TITLE SHEETTABLE OF CONTENTS

I Introduction and Purpose 1

II Approved DevelopmentCurrentConditions1

Ill Areas Remaining to be Developed 3

IV Update to the Environmental Review 3

V Mitigation Summary and Update 3

VI AUAR Update Review 8

List ofFiguresFigure 1 USGS Location Map

Figure 2 AerialPhoto Location Map

Figure 3 Scenario 2

Figure 4 Scenario 3

Figure 5 Scenario 4

Figure 6 Approved DevelopmentFigure 7 Comprehensive Plan Guidance 2012

Figure 8 Water and Sewer ImprovementsFigure 9 Storm Water ManagementFigure 10 Transportation Improvements

PinrtfAlternntive Urbrse Aremvide Bevieiv Uprlrsfe 1014

ESSBSSiteCiq ofNaN BrmdiMN

1S6Roject No 7654750

I Introduction and PurposeThe City ofNorth Branch adopted the North Branch Development Final Alternative Urban

Areawide Review AUAR in June 2004 and updated it in March 2009 renamed ES5BY

Pursuant to Minnesota Rules 44103610 Subp 7 for the AUAR to remain valid as the

environmental review document fot the area the document needs to be updated every five years

until all development iu the study area has received final approval Since undeveloped areas still

remain in the study area and the AUAR will expire in March 2014 the purpose ofthis document

is to update the AUAR pursuant to Minnesota Rules

The ESSBY study area is approximately 393 acres located south of410 Street east of

Interstate 35I35 west ofCSAH 30 and north ofAztec Trail near the north central portion of

the City see Figures 1 and2 The 2004 AUAR and 2009 Updated AUAR included an

analysis of the existing conditions in 2004 Scenario 1 as well as three development scenarios

as follows

Scenario 2 337 acres Industrial 56 acres Residential Comprehensive Plan Figure 3

Scenario 3 300 acres hndustrial 79 acres Residential 14 acres Commercial Figure 4

Scenario 4 222 acres Industrial 106 acres Residential 65 acres Commercial Figure 5

The June 2004 Final AUAR and March 2009 AUAR Update are available for review on the

Citys websiteatwwwcinorthbranchmnusThis report is intended to serve as an update of

the 2009 AUARUpdate and includes a review ofthe areas that have developed an update to the

environmental analysis as needed and a review ofthe mitigation measures

II Approved DevelopmentCurrent Conditions

Figure 6 shows the location of the approved developments within the study area Of the 393

acres in the study area approximately 31 acres have been approved for development The

approved developments are listed in Table I

n1

fable 1ummar m Leveuu

Parcel Size Buildin SizeDevelo ment Activit

750 sf72Viking Coco Beverage distributer 15 ac

Cola

St Croix Decorative stone 15 ac 34000 sf

Stone distributermanufacturer

Vacant Office Warehouse 329 ac 22000 sf

Formerly FacilityToplineAtttomative

Chisago Office 28ac 11300 sf

County Healthand Hutnan

Services

When the City adopted the AUAR the study area wasguided in the Comprehensive Plan as 337

acres of Industrial Park and 56 acres ofLU2residential Since that time the City has changed

some guidance in the study area based on the results ofthe AUAR as well as development

Pnge 1

FinnAernnireUrbmr AremviAe Review UPrlnle 1014

ESSBtSite

Cify ofNarUt Brrtnch MN

IVSB Prujeci No 165J750

requests in the study area The current land use guidance consists ofthe following as shown on

Figure 7

16 acres ofCL Limited Business This area contains Chisago County Health and

Human Services

12 acres ofLU3Currently no development has occurred in this area

57 acres ofLU2Currently no development has occurred in this area

310 acres ofIP Industrial Park This area contains Viking CocoCola St Croix Stone

and the former Topline Automotive properties

In addition to the development a number ofinfrastructure improvements have been completedin conformance with the AUARsmitigation plan These improvements are discussed below

Water and Sewer ImprovementsViking Coke and St Croix Stone in the northwest corner ofthe property are serviced by wells

andonsite sanitary systems These businesses will be cormected to the municipal systems once

the City extends the municipal services to the northern boundary of the study area

As shown on Figure 8 the water main and sanitary sewer within the study area has been

constructed within 400hStreet from CSAH 30 for approximately 1870 feet to the west These

services have been stubbed at this location in anticipation of fuhrre development The sewer and

water have also been extended to the north along Fletcher Street for 780 feet These services are

located within the southern third of the study area and are serving the former ToplineAutomotive building and Chisago County Health and Human Services The remaining water and

sewer improvements identified in the AUAR have not been completed since development has

not occured throughout the study area

Storm Water ManagementThe AUAR identified 118 acrefoot regional storm water ponding facility in the center ofthe

study area to be constructed as part ofdevelopment A portion of this ponding has been

constructed as shown on Figure 9 As additional areas are developed stormwater management

systems will be required and reviewed on a sitebysite basis stormwater management will be

required to meet the allowable discharge rate from new development ofOScfsacreand must

provide infiltrationof11ofrwioff for newly constructed impervious surfaces stormwater

management is limited to the capacity of the dowhstrcam stone sewer system to the Sunrise

River The AUAR also identified a 22acrefootpond in the southeastern portion ofthe studyarea This pond has been constructed

The hank storm sewer line within 400 Street identified in the AUAR has also been constructed

for 1200 feet This line connects into the existing storm sewer east ofCSAH 30 The pondoutlet to the Smrrise River has not been conshucted

Transportation ImprovementsThe original AUAR identified a number oftransportation system improvements in the area

Some ofthese improvements have been completed 400 Street has been constructed and future

rightofway has been set aside at 400iStreet and its termini atI35 iu anticipation of a future

overpass The realigmnent ofFlinkAvenue outside ofthe study area north ofTH95 and west of

I35 also has been completed however the improvements for the remaining length ofFlirrk

FinnAernntine Urban Aremvirle Review Uprne2014 Pnge 2

ESSBYSite

Ciry nfNnrOi Brnuch MN

rSB Project No 1654750

Avenue have not yet been completed No improvements to CSAH 30 have been undertaken to

date as the development has not demanded the need far these improvements Figure 10 shows

the status ofthe transportation improvement projects

III Areas Remaining to be DevelopedOf the 393 total acres there are approximately 362 acres remaining in the study area that have

not been approved for development Most ofthese areas have remained in agricultural

production It is anticipated that these areas will develop as analyzed in the AUAR

The 2004 AUAR anticipated residential development of this area occurring between 2004

2009 However with the decline of the housing market since the AUAR wascompleted the

demazid for residential development in this area has significantly decreased The commercial

and industrial uses were anticipated to develop as demand dictated between320 years This

timeline is still appropriate for the nonresidential portion ofthe study area

IV Update to theEnvironmental Review

While the development scenarios have not changed and the mitigation measures remain valid a

minor potential change to the Citys plans has occurred for the area In 20082009 the City

discussed the potential for aParkandRide to be located within the study area This would

serve the commuting public in North Branch and nearby communities While no specific plans

for aParkandRide have been developed this AUAR update includes the potential use to the

area A mitigation measure to complete a traffic shtdy has beenadded with this AUAR update to

analyze ifaParkandRidewould change the results of the traffic study from the 2004 AUAR

Additionally some regulatory changes have occurred iu storm water management since the

completion ofthe 2004 AUAR The Sunrise River has beenlisted as an impaired water for

bacteria fish and macroinvertebrates The Total Maximum Daily Load TMDL study has been

completed for the bacteria impairment No activities within the study area are anticipated to

have a negative impact on the bacteria TMDL A TMDL study has not been completed for the

fish and macroinvertebrate impairment Development activity in the study area could have an

impact on this impairment The current stornl water management plan includes rate control

treahnent and infiltration Tlris is anticipated to address the future TMDL on the Sunrise River

A new mitigation measure to reference the TMDL has been added in this AUAR update

Overall the area has developed iu conformation with the 2004 AUAR and 2009 AUAR Update

The areas that are anticipated to develop will be in conformance with the 2004 AUAR the 2009

AUAR Update and the mitigation measwes Additionally mitigation treasures to address a

potential ParkandRideand TMDL issues have been added in this AUAR update

V Mitigation Summary and IIpdateBased on this AUAR Update the area has developed as anticipated and planned far in the Citys

Comprehensive Plan as well as the 2004 AUAR and 2009 AUAR Update Toward that end the

mitigation measures outlined in the 2004 AUAR still remain valid and many have been

completed Two mitigation measures have been added The mitigation measures are outlined

below including a progress update

I Developers andor flue City will be required to obtain pernits as needed for any development

scenario The permits are listed under Item8ofthe AUAR It is anticipated that the

Pnge 3

FinnlAltertmtive Urbmt Aremvide Beniew Updnfe 2014

ESSetSite

Ciry ofNm4h Brmrnb MN

IYSB PrnjectNo 1654750

permitting process will be one tool for the irnpleinentation of the mitigation outlined in this

AUAR Itwill be the responsibility of the project proposer to obtain all necessary permitsOngoing

2 The City will comply with its own standards ordinances plans and policies referred to in

the AUAR in the review and approval ofall development activities within the AUAR studyarea Ongoing

3 The City will update this AUAR based mr Mirmesota Rules44103610 Subpart 7 ifafter five

years all development in the study area has not been approved by the RGU or if certain

conditions or assumptions change including land use classifications andotdevelopmentdensities Ongoing

4 The City ofNorth Branch will pursue a site design that will balance the land use types to

provide minimal impact on the residents and landowners of the area Ongoing

5 The City will pursue a development strategy that optimizes the use by residents and

minimizes environmental impacts in and around the study area by buffering between land

uses Ongoing

6 Development in the study area is required to conform to State standards associated with

dealing with hazardous materials or storage tanks that maybe encountered duringconstruction activity Ongoing

7 The remnant prairie along the railroadrightofway will remain intact Ongoing

8 Development will be required to meet the Citys landscaping ordinance Ongoing

9 Clear cutting will not be allowed as part ofdevelopment Ougairrg

10 At a mininmm a portion ofthe wooded area located at the south border ofthe site is

anticipated to remain andor be augmented to buffer the existing residential area from the

study area Ifremoval is necessary replanting for buffering purposes will occur Ongoing

11 Efforts will be made to preserve the trees and wooded areas adjacent to and within the

railroadrightofway to the greatest extent feasible Ongoing

12 The City will encourage the developers ofthe property to market removed trees as

sawlogs landscape materials firewood or biofuel Ongoing

13 Direct impact to the railroad rightofway will be avoided thereby preventing impact to the

ptairie remnants in this area Erosion control will be installed on project construction sites

to eliminate potential for sediment to enter these offsiteareas Any drainage or water

management infrastructure needed within railroad right ofway will consider protection of

the prairie remnants found within the ditch areas Ongoing

14 Blandings turtles have been reported near the study area The City will provide the

Blandings turtle information sheets to the contractors working in the study area If

PinrtlAlteamtive UrhmrArenrvirle Review Uprlrtte 2074 Pnge 4

ESSBrSite

Cite nfNmttBranch MN

liSB Project No 7654750

Blandings turtle are encountered during construction activity the conhactor will be

required to move turtles that ue in harms way Turtles that arc not in irmniuent danger shall

be left undisturbed in conformance with DNR direction Ongoing

15 Erasion conhol measureswill be removed after the disturbed area has been revegetated to

minimize impact to hutle movement Ongoing

16 The site is within the Anoka Sand Plain and thus contains soils that are conducive to

infiltration The regional pohding system will be designed to utilize infiltration ofstorm

water at an anticipated rate ofapproximatelyL0inchhour Ponds will require regular

maintenance to maintain the capacity of the system Tltis type ofmanagement strategy will

be evaluated further as part ofspecific plan development and review Ifit is determined that

infilhation of storm water will have an adverse impact on ground water quality alternatives

to infiltration will be considered Comptete

17 As additional ateas are developed stonnwater management systems will be required and

reviewed on a sitebysite basis Stormwater management will be required to meet the

allowable discharge rate from new development ofOScfsacreand must provide infiltration

of11ofrunoff for newly constructed impervious surfaces OngoingNeronutigation

measure

18 A permit from the DNR will be obtained for the future outfall to the Sunrise River To be

completed rvtren needed

19 Stormwater outlets from the study area will be required to conform to the State and City

policiesrequirements To be completed rvbeu needed

20 Stone water will be treated to City standards The City will provide rate conhrol and

treatment through the use of a regional system The developers andor the City will be

required to implement the stone water management plan outlined as part of the water quality

and quantity management strategy defined in this AUAR Paetialty complete

21 A temporary dewatering permit may be needed for construction The developers andor Ciry

will be responsible for obtaining all necessary permits for this work To be obtained as

needed

22 The Sunrise River is listed as an impaired water The stonnwater management plan is

required to take into account any Total Maximum Daily Loads TMDLs or implementation

plans for impaired waters in the area Ongoing New Irtitigntion measure

23 Auy wells found within the study area will be sealed and abandoned in accordance with

Minnesota Department ofI3ealth guidelines Ongoing

24 Covenants for outside storage ofmaterials within the industrial and conunercial laud uses

will be used At a minimum any material that could dissolve or degrade in outside

conditions will be required to be covered and particular protection for those substances that

would be soluble in water and cause a potential for contamination of the drinking water

aquifers will be provided in these covenants Ongoing

Page 5

FinalAlternnfive Urbrsn Aremvide Review Updrsfe 1014

RSSBrSifeCitp nfNnrUi Brmmb MN

IVSB Project No 654750

25 Figure 8 shows the proposed mitigation plan for the water supply improvements needed to

serve the site The improvements shown are those that are specifically needed to

accommodate the development area Pm4iaycompleted

26 The project owner must apply to the MPCA for aNational Pollutant Discharge Elimination

System NPDES General Stormwater Construction Activity Perurit That applicationincludes a series ofstatements which must be affirmed by the permittee These statements

hrclude assurances that sediment and erosion control plans have been or will be preparedand that these plans will be adhered to by the proposer The sediment and erosion control

plan will provide more detail as to the specific measures to be implemented and will also

address phased construction vehicle tracking ofsediment inspection or erosion control

measures implemented and timeframes in which erosion control measures will be

implemented Ongoing as needed

27 The requirements ofthe NPDES General Permit referenced above provide that all exposedsoil areas have temporary protection or permanent cover during and after construction The

requirement is dependent upon the slopes in the area The NPDES General Permit is

enforceable by the MPCA Ongoing as needed

28 All grading will be subject to the MPCA NPDES requirements Development will be

required to be in conformance with the MPCAsBest Management Practices BMPs as this

is a policy within the City ofNorth Branch Comprehensive Plau Best ManagementPractices as outlined by the Minnesota Pollution Control Agency include but are not limited

to the followingErosion control blanket along chamrels and slopesSeeding and mulching of disturbed areas temporarily andpermanentlyPhasing ofconshuction acfivities within individual developments to minimize soil

exposure

Use ofrock conshuction entrances to minimize hacking ofsoil offsite

Conformance withNPDES permits and SWPPP

Silt fence where applicable to reduce sedimentation from the site

Riprap at outfalls to reduce storm water velocityVegetated swales wlrere applicableSilt fence or rock checks

Temporary and permanent pondingProtection of storm sewer inlets

Ongoing as needed

29 The City will encourage installation of vegetated wind rows where practical These practicesshould be integrated with the storm watermauagemetit requirements defined For the studyarea Ongoing

30 Grading and erosimr control plans will be reviewed and approved by the Chisago Soil and

Water Conservation District To be obtained as needed

FnrsAernniveUrGmr Areaivirle Reniem UPAnIe 1014 Pnge 6RSSRSSie

Cip nfNm1G Rrnnclr MNNSR Aroject No 1654750

31 Itwill be required thatpostdevelopment discharge rates will not exceedpredevelopment

discharge rates in the 10day snowmelt critical storm event The proposed project design

will meet these standards Partially completed

32 The storm water management plan outlined in Scenarios24and shown on Figure 9 will be

implemented by the City andorthe developers Partially completed

33 The City andor developer will be responsible for grading the site appropriately to provide

adequate storm water management to the extent necessary and will be required to obtain the

necessary permits for stone water management and grading Ongoing

34 The City will encourage development to minimize impervious surfaces where applicable and

feasible Ongoing

35 Storm water from the development will be treated to NURP guidelines Treatment to NURP

guidelines will be provided tlsough regional or sitebysite storm water pouding systems

Pmtially completed

36 The City does not intend to discharge any untreated stonnwater to downstream natural water

courses or wetlands Partially completed

37 MPCA standards will be enforced for onsite sewage systems Compliance will be

monitored as required It is assumed that no new onsite sewage systems will be conshucted

in the area It is expected that any reconstruction or rehabilitation ofexisting systems would

be done in accordance with applicable standards Ongoing

38 It is anticipated that most of the study area will be served by municipal sewer that flows to

the trunk sewer system with eventual treatment at the Cityswastewater treatment facility

Municipal sewer will be constructed as part ofprivate development in the project area as

shown on Figure 8Partially completed

39 Mitigation includes thedevelopment ofa spill response plan For industrial and conunercial

areas spills will be reported to the ffre chiefandor applicable City Staff The fire chief

andor applicable Ciry Staffwill in turn notify any other appropriate officials depending on

the nature of the spill Ongoing

40 The individual waste hauler companies will make residential and coumnercial recycling

programs available to the area General umnicipal waste will be removed by these waste

hauler companies Ongoing

41 Tatilcs and other potential pollutant sources will be removed in accordance with State

standards if they are encountered as part ofdevelopment Ongoing

42 Auy fuel station type services will be required to conform to State regulationsOrgoirrg

43 Several traffic mitigation measures have been developed to address unacceptable levels of

service LOSE or F and delay that would occur iffull buildoutof the proposed

development takes place These measuues are shown on Figure 10

Prtge 7

FlnrtlAternrtlire UrLnn Aremvirle Review Update 1014

BSSBYSile

Citp nfNmMr Branch MN

NSB Project Nu 1654750

a CSAH 30400h Sheet Intersection Bnprovements 20042008 This mitigationproject includes adding northbound southbound eastbound acid westbound turn

lanes at this intersection Partially completed

b 400x Street Construction 20042008 As part ofthis project 400iStreet will

be upgraded to three lanes with a center turn lane between CSAH 30 andI35

Completed

c Install traffic signal at the CSAH 30400iStreet intersection20082014

d Construct 400iStreet Bridge overI35 20082014 This project includes turn

lanes and potential realignment ofthe intersection of400iStreet and Flinlc

Avenue To Ge completede CSAH 30 Street Improvements 20082014 This project includes adding a

center left turn lane at selected intersections between TH 95 and 410 Street To

Le coarpletedf Flirilc Avenue hnprovements 2014 This project includes upgrading Flank

Avenue to a three lane street with a center turn lane as well as realigning CR 68

at TH95 The realignment will be phased with development Partiallycompleted

44 IfaParkandRide is proposed in the study area a traffic analysis will be completed to

determine if additional traffic and noise mitigation measures are needed New nritigatiorrnrerrsure

45 Through the City plan review process the City will require noise mitigation ifdeemed

necessary To be completed ifneeded

46 The City requires 10 park dedication or cash inlieu for residential development Partiallycoarpleted

47 Through City plan review the City shall require appropriate screening ofdevelopmentsadjacent to land use changes and natural resources as deemed accessary by the CitytJ017

48 The City will provide municipal services to most of the study area These services include

stoma sewer systems sanitary and water service and City streets These services will be

constructed in conjunction with various phases ofdevelopment Pmtinlly completed

49 The City will cwrtinue to implement its CIP to locate and provide community facilities to its

residents Partially completed

50 The City shall provide the AUAR to the School District for review Tledrnft andfinalAUAR is 2004 andAUAR Update in 2009 were provided to the School District This

AUAR update leas also Leerl provided to the School District

VI AUAR Update Review

Pursuant to Minnesota Rules44103610 Subp 7 this AUAR Update will be submitted for aten

day comment period The comment period will end within ten days of the review agencies

PinrsAernntive UrGm Aremvide Rerierv Updne1014 Pnge 8

ESSBSSie

CLy ofNnrtL Brmrdi MN

IISB Project Nu 1654750

receiving the AUAR update Once the review period is complete and the Council adopts the

AUAR Update the ESSBY AUAR will remaiu valid for au additional five years from the

adoption date

Pnge 9

FinnlAferantine UrGan Areavide Revierv UPAaIe 2014

FSSBtSleCip nfNmth 8rancl MN

fIS8 Protect Na 1654750

Appendix A

Figures

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1Filek016549501gisMapsFig1usgsmxE 14120131132a8AM

Legend

QProject Location

Proposed Land Use

IP Industrial Park

C Commercial

LU2 ResidentialLU3 Residential

Figure 4 Scenario 3ESSBYAUAR Update 2014

0 500 1000 Feet ws6

9anllary3awar PrejeqNotlM1lntluslNalPaRTrunk Sewer

Phaae4

Wabamaln Prolaq

Notlh latluslrlal Park Taunk WalermalnPM1me

Waleamaln PeojeqNorth lptlux4lel perk Tmpk WalermalnPM1aaa 9

Walarmaln Pralecl

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Phau 1

Wemrmeln Prclecf t j1 a 5 1 rysawar PmleetNotlh lntlueltlal Pad iaunk Wal 1 N tll 1 E IrIa1 PaMTrvnk SewerPheeef Phuo

1j

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Phafa r l Ph e1

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Walermaln project9001h 91eee9Trunk Walenneln LoopPromsuemcsu9s

Walermaln Prejec9Walermaln LaoplnB eanneIlon

Walartneln ProeIFINk Rvanua Tmnk Walermaln Loop

Figure 8 Water and Sewer ImprovementsESSBY AUAR Update 2014

File

Legend

Q Project Location

uCompleted Sanitary Sewer

Competed Watermain

Proposed Sanitary Sewer

Proposed Watermain

0 750 1500 Feet wB

HWGISMapsFIgBWa1er59w9rimpmxtl125201392255AM

ConslmdReglonal Panding

Pontl pfComplete

Trunk Llnerrom Reglonal Pontl to CSAH JO

antl Connection orTrvnk gysemorder CSAH 30

ComlmctAppreximately22ecredeal olfteBlonal POntling

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WWTP Ppntl Outlef

fo SOnrlseRiver

200420081

Legend

Q Project Location

Completed Storm Sewer

Proposed Starm Sewer

Stormwater Pond

Figure 9 Stormwater ManagementESSBY AUAR Update 2014

Improvements o X50 50o Feet WSB

nvoamatnrmxd 21120142284PM

CSAH 30 Street ImprovementsAtltl Center Lek Turn Laneat Three

Intersections

Left Turns NB8 SB at 410th Street

Sfreet Access

CSAH 30 at 400th Sfreet

Intersection ImprovementsAdd NB 8 SB Lek Turn Lane

Add EB 8 WB Lek Turn Lane

400th StreetBridgeStreet ImprovementsNew 3 Lane BridgeAdd Lak Turn Lane

at 400th 8 Flank

Realignment at FllnkCSAH 30 a1400th Street

tJew Signal Sysfem

400th Street

COnstmct three laneswith center left turnlane

Flank Avenue

Street ImprovementsNew 3 Lane Street with

Center Lett Turn Lane

Realign to CR 68 CSAH 30 Street ImprovementsAdd Center Left Turn Lane at

Three lnlersectlons

Leaend

QProject Location

Completed Roadway Improvements

Proposed Roadway Improvements

oRFigure 10 Transportation Improvements o X50 50o Feet WSBESSBY AUAR Update 2014

FileK10165450GIS1MapsFIg10TransPlanmxd1241201322013 PM

Appendix B

DNR andSHPO Correspondence

110a Milmesota Depaltment of NatwalResources

Divisimr of Ecological and WaerResources Box 25

500 Lafayette Road

St Paul Minnesota 551554025

OEPAftT1lEfli Of Phone 651 2595109 8maillisajoyal@shtiemnusNATURAL FeSCURCE5

January 232014

Ms Kelsey Johnson

WSB Associates Inc

701 Xenia Avenue South Suite 300

Minneapolis MN 55416

Correspondence RDB 20140137

RE Natural Heritage Review of the proposed ESSBY AUAR Update 2014

T35N R21W Sections 8 9 16 17 Chisago County

Dear Ms 7ohnsonThe Minnesota Natural Heritage Information System has been queried to determine if any rare

species or other significant nahualfeatures are known to occur within au approxitate onemileradius of

the proposed project For the results of this query please refer to the enclosed database reports please

visit the Rare Species Guide at hamwww dm state tmr ushsuJindexhtrnl for more information on the

biology habitat use and conservation measwes of these rare species As requested per the data request

form I am providing the database reports only and have not evaluated the potential for the proposed

project to adversely affect these rare features Please note that the Environmental Assessment Worksheet

EAW should address whether the proposed project has the potential to adversely affect these rare

features and if so the EAW should describe any measuresthat will be taken to avoid minimize or

mitigate impactsThe discrepancies in the two database searches done in 2003 and 2013 are due to changes in the

database shucture and changes in the search techniqueie the way the database is queried In 2003 the

records in the database were maintained as points only The database was queried within an approximateonemileradius of the sections that contained the proposed project Today the records iu the database are

maintained as polygons and we search for records that arewithin an approximate onemile radius from

the project bowrdary Consequently even though the records in the database have not changed in the area

ofinterest the results of the search are different

The Natural Heritage Information System NHIS a collection of databases that contains

information about Mimresotas rare natural features is maintained by the Division of Ecological and

Water Resources Deparhnent of Natural Resources The NHIS is continually updated as new

information becomes available and is the most complete sowce ofdata on Minnesotasrare or otherwise

significant species native plant cormnunities and other natural features However the NHIS is not an

exhaustive inventory and thus does not represent all of the occurrences of rare features within the state

Therefore ecologically significant features for which we have no records may exist within the projectarea If additional information becomes available regarding rare features in the vicinity of the

project further review may be necessaryThe enclosed results include an Index Report and a Detailed Report of records in the Rare

Featmes Database the main database of the NHIS To conUol the release of specific location

information whichmight result in the destruction ofa rare feature both reports are copyrightedThe Iirdex Report provides raze feature locations only to the nearest section and may be

reprinted unaltered in an environmental review document eg EAW or EIS municipal natural

resource plan or report compiledby your company for the project listed above Ifyou wish to reproduce

the index report for any other purpose please contact me to request written permission The Detailed

Report is for your personal use only as it may include specific location information that is

wwwmndnryovAN EQUAL OPPORTUNITY EMPLOYER

cousidered nonpublic data under Minnesota Statutes section 840872 subd 2 If you wish to

reprint or publish the Detailed Report for any purpose please contact me to request written

permissionFor environmental review purposes the Natural Heritage letter and database reports are valid for

one year they are only valid for the project location noted above and the project description provided on

the NHIS Data Request Form Please contact me if project details change or for an updated review if

construction has not occurred within one yearThe Natural Heritage Review does not constitute review or approval by the Department of

NahualResources as a whole Instead it identifies issues regarding known occunencesof rare features

and potential effects to these rare features To determine whether there are other natural resource

concerns associated with the proposed project please contact your DNR Regional Enviroiirnental

Assessment Ecologist contact information available at

httpwww dut state rmrusccoereviewerreeioncontactshtm Please be aware that additional site

assessments or review may be requiredThank you for consulting us on his matter and for your interest in preserving Mimcsotasrare

natural resources An invoice will be mailed to you ender separate cover

Sincerely

LisaJoyalEndangered Species Review Coordinator

enc Rare Features Database Index ReportRare Features Database Detailed ReportRare Features Database Reports An Explanation ofFields

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Kelse Johnson

From Thomas Cinadr thomascinadr@mnhsorgSent Monday December 02 2013 114 PM

To Kelsey Johnson

Subject Re Request for SHPO Data ESSBY AUAR Update North Branch

Attachments Historicrtf

THIS EMAIL IS NOT A PROJECT CLEARANCE

This message simply reports the results of the cultural resources

database search you requested The database search produced

results for only previously known archaeological sites and historic

properties Please read the note below carefully

No archaeological sites were identified in a search of the Minnesota Archaeological Inventory and Historic Struchnes Inventory for

the search area requested A report containing the historic properties identified is attached

The result of this database search provides a listing of recorded archaeological sites and historic architectural properties that are

included in the current SHPO databases Because the majority of archaeological sites in the state and many historic architectural

properties have not been recorded important sites or structures may exist within the search area and may be affected by development

projects within that area Additional research including field survey may be necessary to adequately assess the areas potential to

contain historic properties

Ifyou require a comprehensive assessment ofaprojectspotential to impact archaeological sites or historic architectural propBrtics

youmay need to hire a qualified archaeologist andorhistorian Ifyou need assistance with a project review please contact Kelly

GraggJohnson inReview and Compliance Cn 6512593455 orby email at kelly bra Qiohnsonmnhs or

The Mimtesota SHPO Survey Manuals urd Database Metadata and Contractor Lists can be found at

hurthvww rmthsorastenosurvevinventorieshtm

SHPO research hours are 800 AM 400PM TuesdayFriday

The Office is closed on Mondays

Tom CinadrSurvey and Information Management CoordinatorMinnesota State Historic Preservation Office

7

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March 31 2014

Ms Bridgitte Komad

City ofNorth Branch

6408 Blm Street

Nortlt Branch MN 55056

CIISAGCiJlTIDEPARTMENT OF PUBItIC WORDS

Mail 313 North Maiu Street Rooru 400

Center City MN 550129863

Office 31325 Oasis Road Center City MN 550129863

Phone 6512138700

Fax G512138772

RE City of North Branch

ESSBY Site AUAR Update 2014

WSB Project No 1654750

Jae Triplea PE

Director Comity Engineer

Bruce Lint

NEaintenance Superintendent

Bcn Utcch

Gtgineering Superintendent

Pmd Gibsonl5

County Surveyor

Cindy V JohnsonAccountant

llear Bridgitte

We have received the FAUAR Update 2014 for the ESSBY Site for the City ofNotth Branch We have completed our

review and Duly have one comment

lIow doeshvould the proposed aggregate facility fit into the different development scenarios

Thank you for the opportunity to review and comment on the AUAR update Ifyou should have any questions please do

uoC hesitate to contact medirectly

Sincerely

rFO

iJoefriplettPEDirector Cowtiy 1JnguteerChisago County Public Works

ce AndreaMoffatt WSB Associates elecYrortie copy only

Diane Hankee WSB Associates relecboniccopy only

GEngineeringlisccllmteuusIiSSElYNorth BranchESSBY AUelRupdate 2014 comments331t4doc

4hmrrt 2

An Equal Opportunity Employer

IblsoC

April 8 2014

Ms Bridgitte Konrad

City ofNorth Branch

6408 Elm Street


Chisago County Department ofEnvironmental Services and Zoning

313 No Main St 243

Center City MN 55012

6512138374 lcroschne@cochisagomnus

RE ESSBY Site FAUAK2014Update Continent

WSB Project Na 1654750

Dear Ms Komad

Pursuant to the March 24 2014 letter from WSB Environmental Scientist Andrea Moffatt please accept the

following commentsconcerning the 2014 update to the ESSBY site Final Alternative Urban Area Wide

Review FAUAK

Section N Update to Environmental Review includes 20082009 reference to a potential ParlcandRide area

and the inclusion of a traffic study mitigation measmeanalyzing ifsuch a use would change the original 2004

AUAR It is recommended the 2014 FAUAK update include comparable evaluation and mitigation measures

concerning the Sand Transload Facility currently ender consideration by the City Bypass transportation routes

and the timing ofotherhanspottation imptovements highlighted in the FAUAK figure I O may need furtherdetails as it relates to the active consideration of a Sand Transload Facility See also mitigation measures 43 and

44The FLAUAR appears to include no mention of rail as a transportation element ofthe ESSBY site The impact of

additional or intensified use of rail added rail spurs higher volume use noise possible wildlife barrier elementsetc should be discussed Mitigation measures may be needed to address intensified or expanded rail use It is

understood that he contemplated Sand Transload Facility would generate signilicaut rail use Protection of the

remnant prairie along the railroad rightofway is recognized and listed as an ongoing mitigation measweof the

AUAR which may also reyuire expanded discussion sea mitigation measure7 and 13

Recognition of the Sunrise River impaired water status and consideration of storm water management protectionmeasures including the new mitigation measures referencing the TMDL are noted and appreciated see mitigationmeasure 17and22

It is my hope that the above comments are helpful and constructive Ifyott have questions feel free to call me

at6512138374

Sinqe

Kur c e cr

Environ ental Services Director

Andrea Moffatt WSB Associates Inc

Kelsey Johnson

From Bridgitte Konrad bridgittek@cinorthbranchmnusSent Monday April 14 2014 134 PM

To Andi Moffatt Kelsey Johnson

Subject Fwd ESSBY AUAR UPdate DNR comments

Brrdgitte Koerad

City Administrator

City ofNmthBranchPhone 6516748113

Fortivarded message

From Haworth Brooke DNR BrookeHaworthcrstateimius

Date Mon Apr 14 2014 at I27 PM

Subject ESSBY AUAR UPdate DNR comments

To brid ittekacinorthbranchnmusbridQittekccinorthbranchnurus

Ms Konrad

The Department ofNatural Resources has reviewed the 2014 update to the ESSBY FAUAR We appreciate the

attention you have given in the mitigation surmnaiy to natural resource features including rare speciesBlaudingsturtles stonnwater management and eventual outfall to the Sunrise River Sunrise River TMDLs

infiltration systems preservation ofreimiant prairie along the railroad rightofway and retention ofwooded

buffers

This update sufficiently addresses our natural resource concerns for this project area and we offer no additional

comments Thank you for the opportunity to review this document

f3offkrr HawovtlN

Environmental Assessment Ecologist Central Region

MnDNR Division of Ecological and Water Resources

1200 War7rer Road St Paul MN 55106

Phone 6512595755

Email Brookehaworthnastatemnus

6zutiliatin itc No eThe mEormaGon oonimueduithietmad andd rumwttsutacLul ue furthe iai luvn ieuUu ud tie9see andmuurtaiu

wnFidentfalqucilegrd emd uon diAvsable iutonnation IIthe uxlPeu1 ut tLw c mail is notUu addetnsm h iecipta nt aUecilp puiliebited fromiadm

photocoping distributlug nrotheradse eesir thisrnmil nriC conCents iu mrywug

Minnesota Pollution Control Agency520 Lafayette Roed North I StPaulMinnesota 551550194 16512966300

8006573864 16512025332 M I wwwpcastatemnus I Equal Opportrmiry Employer

April 3 2014

Ms Dridgitte Konrad

City of North Branch6408 Elm Street


Re City of North Branch ESSBY Site AUARUpdate 2014 WSB Project No 1654750

Dear Ms Konrad

Thank you for the opportunity to review and comment on the Alternative Urban Areawide Review

AUAR for the North Branch ESSBY Site The Minnesota Pollution Control Agency MPCAj staff has

reviewed the AUAR update and has no comments at this time

Ifyou have any questigns concerning our review of this AUAR please contact meat 6517572482

Sincerely

iCzKevin Kain

Planner PrincipalEnvironmental Review Unit

Resource Management and Assistance Division

KKbt

cc Craig Affeldt MPCA St Paul

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City ofNorth Branch

StaffReportPrepared By Bridgitte Konrad

Date April 23 2014

Subject Amend Liquor License Oak Inn

Background InformationThe owner of the Oak Inn has submitted a request to amend their Liquor License to

include apatiooutside seating area Their liquor license would need to be amended to

specifically include the patio area They are proposing installation of a door from the

restaurant to the patio area They are working with the Building Official on the building

permit for the door installation They are proposing fencing of the entire grassy area to

the east of the building Their plan shows a gate in the rear corner of the fenced area

Staff recommends that the gate be for exiting only no entrance from the

sidewalkparking lot area For safe exiting in an emergency we recommend that the

gate be moved closer to the patio area or a second gate be installed that allows for

exiting but not entrance Their liquor liability insurance needs to be amended to include

the patio area The City can impose any additional requirements as needed

They are requesting an area 50 X 30 adjacent to the restaurant The entire yard area

will be fenced They plan to have 812 tables in the area

Conditions that I recommend are included in your approval in addition to the State

requirements include that the patio area be fenced that access to the patio area be

from inside the restaurant no direct access from the sidewalk that the gate be

relocated to the south or east fence line closer to the patio or an additional gate be

installed for exiting only


AdvantagesDisadvantages

FinancialBudget Impacts If AnyFunding Sources


DeadlineASAP B

Requested Action Staff RecommendationI recommend approval of the attached resolution amending the Liquor License

contingent upon meeting all requirements as outlined

Voting RequirementsSimple majority vote of the Council

Attachments1 Letter of request and sketch2 Draft Resolution

Gloria Bergstrom

The Oak Inn Restaurant

5896 Old Main Street PO BOX 398


6129617241

April 16 2014

City ofNorth Branch

I am requesting approval for an outside patio to the east of our currentbuildingThe patio will be for outside dining and will have approximately 8 12 tables The

only structure change to the building will be a exit door to the patio on the

southeast side ofthe building specs are attached A structural engineer will be

doing the fmal specifications on the door installation and those will be submittedwhen the building permit is applied for

The east side yard will be completely fenced with a gate on the north side The gatewill be unlocked during business hours in the event of an emergency the publiccan exit the patio Please advise as to the required height ofthe fence needed

The patio will be open for seating when the weather permits approximately Maythrough September each year

I believe this addition toour restaurant will be extremely beneficial to the North

Branch area It will bring new people into our town and hopefully to the other

merchants ofNorth Branch

I would like approval for this project as soon as possible Peel free to contact me

with any questions Please let meknow if any additional information is needed

Thank you for your attention in this matter

Gloria Bergstrom

STATE OF MINNESOTA

COUNTY OF CHISAGO




A RESOLUTION AMENDING THE LIQUOR LICENSE FOR THE OAK INN 5896 OLD MAIN

STREET

WHEREAS Gloria Bergstrom of the Oak Inn Restaurant has requested amendment of their 2014

Liquor License to include a patio area and

WHEREAS amendment of the license requires City Council approval

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH

BRANCH

That the 2014 Liquor License for the Oak Inn Restaurant is hereby amended to include a

patiooutdoor seating area subject to the following conditions

1 The patio area to be approximately 50 x 30

2 The area must be fenced

3 The liquor liability insurance certificate must be amended to include the outdoor

seating area

4 Access to the patio must be through the restaurant No direct access from the

sidewalk or parking will be allowed

5 That agate for emergency exiting be installed on the south or east fence line closer

to the patio area

6 Outdoor seating is prohibited from November1March 31



KATHY BLOMOUIST VOTEI JOYCE BORCHARDT VOTE


RONALD LINDOUIST VOTE

Passed and adopted this 28hday of April 2014


BY


ATTEST


City ofNorth Branch

StaffReportPrepared By Richard Hill

Date April 24 2014

Subject 2013 Audit Report

Background Information The Citys 2013 Audit will be presented to Council on

Monday April 28th for your review and acceptance Mary Reedy and Doug Host from

ClitonLarsonAllen LLP will be presenting the audit and available for questions

An electronic copy is being sent out at this time and a hard copy will be provide at

Mondaysmeeting along with the hard copy of the audit presentation reviewing the

Citys 2013 Audit



FinancialBudget Impacts IfAny

Funding Sources NjALongTerm ShortTerm Costs NA

Deadline June 30 2014

Requested Action Acceptance of the 2013 Audit Report

Staff Recommendation Accept auditwith passage of Resolution 025042814

Voting Requirements Simple majority

Attachments

1 2013 City of North Branch Audit electronic copy emailed with hard copy

provided at meeting2 Resolution 025042814

unrtra 1994

STATE OF MINNESOTA

COUNTY OF CHISAGO




A RESOLUTION ACCEPTING THE 2013 AUDIT FOR THE CITY OF NORTH BRANCH

CONDUCTED BY CliftonLarsonAllenLLP

WHEREAS the firm of CliftonLarsonAllenLLPhas been retained by the City of North Branch to

conduct a fiscal audit for the City of North Branch for 2013


That the City Council accepts the 2013 Audit and Management Letter for the City of North Branch

submitted by CliftonLarsonAllenLLP

The foregoing motion was duly seconded by Council Member and being put to vote

members voted AYE NAY ABSENT

KATHY BLOMQUIST JOYCE BORCHARDTTHERESAFURMAN TRENTJENSEN

RONALD LINDQUIST



BY


ATTEST



FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

YEAR ENDED DECEMBER 31 2013

CITY OF NORTH BRANCH MINNESOTATABLE OF CONTENTS

DECEMBER 31 2013

INTRODUCTORY SECTION

PRINCIPAL CITY OFFICIALS

FINANCIAL SECTION

INDEPENDENT AUDITORS REPORT

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENTSDISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

GOVERNMENTWIDEFINANCIAL STATEMENTS

STATEMENT OF NET POSITION

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

BALANCE SHEET GOVERNMENTAL FUNDS

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO

THE STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES

STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND

BALANCES GOVERNMENTAL FUNDS

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES TOTHE STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES

STATEMENT OF NET POSITION PROPRIETARY FUNDS

STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET POSITIONPROPRIETARY FUNDS

STATEMENT OF CASH FLOWS PROPRIETARY FUNDS

NOTES TO FINANCIAL STATEMENTS

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MDA

SCHEDULE OF FUNDING PROGRESS NORTH BRANCH VOLUNTEER FIRE RELIEF

ASSOCIATION

BUDGETARY COMPARISON SCHEDULE GENERAL FUND

NOTES TO THE REQUIRED

2

5

17

18

20

21

22

23

24

26

27

29

65

66

67

CITY OF NORTH BRANCH MINNESOTATABLE OF CONTENTS CONTINUED

DECEMBER 31 2013

FINANCIAL SECTION CONTINUEDCOMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS

COMBINING BALANCE SHEET NONMAJOR FUNDS

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND

BALANCES NONMAJOR FUNDS

BALANCE SHEET DEBT SERVICE FUND BY BOND ISSUE

STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE

DEBTSERVICE FUNDS BY BOND ISSUE

BALANCE SHEET CAPITAL PROJECTS FUNDS BY CAPITAL PROJECT

STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

BY CAPITAL PROJECT

OTHER REPORTS SECTION

INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT

AUDTNGSTANDARDS

SCHEDULE OF FINDINGS AND RECOMMENDATIONS

INDEPENDENT AUDITORS REPORT ON MINNESOTA LEGAL COMPLIANCE

68

72

76

81

86

90

INTRODUCTORY SECTION


PRINCIPAL CITY OFFICIALS

DECEMBER 31 2013

Position Term Expires Name

Mayor 1 2131 201 4 Ronald LindquistCouncil Member 12312014 Kathy BlomquistCouncil Member 12312016 Joyce Borchardt

Council Member 12312016 Theresa Furman

Council Member 12312014 Trent Jensen

APPOINTED OFFICIALS

Position Name

City Administrator Bridgitte Konrad

This Page Has Been Intentionally Left Blank

FINANCIAL SECTION

COftonLarsonAllen LLPr CLAconnectcom

CliftonLarsonAllen

Honorable Mayor and

Members of the City Council

City of NoRh Branch

North Branch Minnesota

INDEPENDENT AUDITORS REPORT

We have audited the accompanying financial statements of the governmental activities the business

lype activities the discretely presented component unit each major fund and the aggregate remainingfund information of the City of North Branch the City Minnesota as of and for the year ended

December 31 2013 and the related notes to the financial statements which collectively comprise the

Citysbasic financial statements as listed in the table of contents

ManagementsResponsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America this includes

the design implementation and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement whether due to fraud or

error

Auditors ResponsibilityOur responsibility is to express opinions on these financial statements based on our audit We did not

audit the financial statements of North Branch Municipal Water and Light Commission which

represents the assets net position and revenues of the discretely presented component unit Thosestatements were audited by other auditors whose report has been furnished to us and our opinioninsofar as it relates to the amounts included for North Branch Municipal Water and Light Commission is

based solely on the report of the other auditors We conducted our audit in accordance with auditingstandards generally accepted in the United States of America and the standards applicable to financial

audits contained in Government Aucfiling Standards issued by the Comptroller General of the UnitedStates Those standards require that we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements The procedures selected depend on the auditors judgment including theassessment 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 entityspreparation 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 entitys internal control Accordingly we express no such opinion An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of significantaccounting estimates made by management as well as evaluating the overall presentation of thefinancial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinions

1lo1I4

Honorable Mayor and

Members or the City CouncilCiiy or North Branch

OpinionsIn our opinion based on our audit and the report of other auditors the financial statements referred to

above present fairly in all material respects the respective financial position of the governmentalactivities the businesstypeactivities the discretely presented component unit each major fund andthe aggregate remaining fund information of the City of North Branch Minnesota as of

December 31 2013 the respective changes in financial position and where applicable cash flows

thereof for the year then ended in accordance with accounting principles generally accepted in the

United States of America

Emphasis ofa Matter

During the fiscal year ended December 31 2013 the City adopted the provisions of Governmental

Accounting Standards Board Statement GASES No 65 the City reported a change in accountingprinciple See Note 10 Beginning net position was restated as debt issuance costs except any portionrelated to prepaid insurance costs is now recognized as an expense in the period incurred Debt

issuance costs were previously reported as an asset and recognized as an expense in a systematicand rational manner over the duration of the related debt The auditors opinion was not modified with

regards to the restatement

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

managements discussion and analysis schedule of funding progress and budgetary comparisoninformation as listed in the table of contents be presented to supplement the basic financialstatements Such information although not a part of the basic financial statements is required by theGovernmental 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 historicalcontext 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 comparingthe information for consistency with managements 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 North Branchs basic financial statements The combining and

individual nonmajor fund financial statements the debt service fund by bond issue financial statementsand the capital projects fund by project financial statements are presented for purposes of additional

analysis and are not a required part of the basic financial statements

Honorable Idayer and

PAembers of the City Council


Other Matters ContinuedOther Information Continued

The combining and individual nonmajor fund financial statements the debt service fund by bond issuefinancial statements and the capital projects fund by project financial statements are the responsibilityof management and were derived from and relate directly to the underlying accounting and other

records used to prepare the financial statements Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and certain additional proceduresincluding 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 themselvesand other additional procedures in accordance with auditing standards generally accepted in the UnitedStates of America In our opinion the combining and individual nonmajor fund financial statements the

debt service fund by bond issue financial statements and the capital projects fund by project financialstatements are fairly stated in all material respects in relation to the basic financial statements as a

whole

Other Reporting Required by GovernmentAudltng Standards

In accordance with Government Auditing Standards we have also issued our report dated

April 22 2014 on our consideration of the Citys internal control over financial reporting and on our

tests of its compliance with certain provisions of laws regulations contracts and grant agreements andother matters The purpose of that report is to describe the scope of our testing of internal control over

financial reporting and compliance and the result of that testing and not to provide an opinion on

internal control over financial reporting or on compliance That report is an Integral part of an audit

performed in accordance with Govemment Auditing Standards in considering the Citys intemal controlover financial reporting and compliance

CliftonLarsonAllen LLP

Brainerd Minnesota

April 22 2014

t4


MANAGEMENTSDISCUSSION AND ANALYSISYEAR ENDED DECEMBER 31 2013

This section of the City of North Branchsthe City annual financial report presents our discussion and

analysis of the Citys financial performance during the fiscal year that ended on

December 31 2013 The managements discussion and analysis MDBA is an element of RequiredSupplementary Information specified in the Governmental Accounting Standard Boards GASBStatement No 34 Basic Financial Statements and Managements Discussior7 and Analysis forState and Local Governments issued in June 1999 Certain comparative information between the

current year 2013 and the prior year 2012 is required to be presented in the MDA

FINANCIAL HIGHLIGHTS

Key financial highlights for 2013 include the following

Cilyvride net position increased by approximately 400000 over the prior year This is due

primarily to the City controlling costs and maintaining revenue sources

Overall governmental fundlevel revenues totaled 57942453 and were 543685 less than

expenditures However transfers and bond proceeds into the governmental funds caused the

governmental funds to have an increase in fund balance of5966833

The General Fundsfund balance increased 205467 or916 from the prior year due mainly to

revenues being higher than budget and expenditures being lower than budget

At the end of the current year unassigned fund balance for the General Fund was52442159 or

7768of General Fund expendituresThe Sewer Fund net position decreased 5284959 or331 from the prior year Depreciationexpense in this fund totaled S588045 The Municipal Liquor Fund net position increased 50274or 1279 including impact of the depreciation expense of 18128 The Storm Sewer Fund net

position decreased S161240 or 229 from the prior year Depreciation expense in this fund

totaled 227521

The financial section of the annual report consists of Four parts Independent Auditors Reportrequired supplementary information which includes the managements discussion and analysis thissection the basic financial statements and supplementary information The basic financial statementsinclude two kinds of statements that present different views of the Cily

The first two statements are Citywide financial statements which provide both shortterm and

longterm information about the Citys overall financial status

The remaining statements are fund financial statements which focus on individual parts of the

City reporting the Citysoperations in more detail than the Citywide statements

The governmental funds statements tell how basic services such as generalgovernment public safety and public works were financed in the shortterm as well as

what remains for future spendingThe proprietary funds statements tell how the Citys various businesstype activities such

as sewer municipal liquor and storm sewer activities are operating as well as what

remains for future spending



OVERVIEW OF THE FINANCIAL STATEMENTS CONTINUEDThe financial statements also include notes that explain some of the information in the statements and

provide more detailed data

Figure A1 shows how the various parts of this annual report are arranged and related to one another

Figure A1

Annual Report Format

easyFinnncWl

Slalemcnlb

Puw 7laaFmcncbl

6tawmontc

Stafaneeta

Summary j Detall



OVERVIEW OF THE FINANCIAL STATEMENTS CONTINUED

Figure A2summarizes the major features of the Citys financial statements including the portion of the

Citys activities they cover and the types of information they contain The remainder of this overview

section of managements discussion and analysis highlights the structure and contents of each of thestatements

Over time increases or decreases in the Citys net position are an indicator of whether itsfinancial position is improving or deteriorating respectively

To assess the overall health of the City you need to consider additional nonfinancial factors such

as changes in the Citys property tax base and the condition of City buildings and other facilities

CityWide StatementsThe Citywide statements report information about the City as a whole using accounting methodssimilar to those used by privatesector companies The statement of net position includes all of the

Citys assets and liabilities All of the current years revenues and expenses are accounted for in the

statement of activities regardless of when cash is received or paid

The two Citywide statements report the Citys net position and how they have changed Net positionthe difference between the Citys assets and liabilities are one way to measure the Citys financialhealth or position

CITY OF NORTH BRANCH MINNESOTAMANAGEMENTSDISCUSSION AND ANALYSIS


OVERVIEW OF THE FINANCIAL STATEMENTS CONTINUED

CityWide Statements ContinuedIn the Citywide financial statements the Citys activities are shown in two categories

Governmental Activities The Citys basic services are included here Property taxes specialassessments and state aids finance most of these activities

BusinessType Activities The Citysenterprise fund operations are included here Charges for

services finance most of these activities

Fund Financial Statements

The fund financial statements provide more detailed information about the Citys funds focusing on itsmost significant or major funds not the City as a whole Funds are accounting devices the City uses

to keep track of specific sources of funding and spending on particular programs

Some funds are required by state law and by bond covenants

The City establishes other funds to control and manage money for particular purposes egrepaying its longterm debts or to show that it is properly using certain revenues eg federal

grants

The City has two kinds of funds

Governmental Funds The Citys basic services are included in governmental funds which

generally focus on 1 how cash and other financial assets that can readily be converted to cash

flow in and out and 2 the balances left at yearend that are available for spendingConsequently the governmental funds statements provide a detailed shortterm view that helps to

determine whether there are more or fewer financial resources that can be spent in the near

future to finance the Citys programs Because this information does not encompass the additional

longterm focus of the Citywide statements we provide additional information after the

govemmental funds statements that explain the relationship or differences between them

Proprietary Furrds The City reports three proprietary funds Enterprise funds are used to reportthe same functions presented as businesstype activities in the governmentwide financial

statements The City uses enterprise funds to account for its sewer municipal liquor and storm

sewer services Proprietary fund financial statements provide the same type of information as the

governmentwidefinancial statements only in more detail

8



FINANCIAL ANALYSIS OF THE CITY AS A WHOLE

Net Position

The Citys net position was533944350 on December 31 2013 see Table A1

Table A1The Citys Net Position

GovernmentalActivities BusinessType Activities Total

2013 2D12 2073 2072 2013 2012

Current and Other Assets 17497393 S 12666265 5 1996A81 5 1787013 79487874 514447278

Cap7ta7 Assets 32331679 33607223 25472047 283D5741 57603666 59372964

Total Assets 49823072 45673488 27468528 28086754 77291540 73760242

Current Liabilties 2755701 2668952 577817 461 A79 3333518 3730431

LongToren Liabilities 28707073 24954674 17306599 71594951 4D013572 36549625

Total Liabilities 37462774 27623626 11884416 72656430 43347190 38660056

Nel Position

Net Inveshnent In Capdal Assets 7555706 6171420 13910248 14570762 21465954 20742782Restricted 10696112 71653962 10696112 11653962

Unrestricted 108420 224480 1873864 1459562 1782284 7684042

Total Net POSNOn 18360238 18049862 15584172 16030324 5 33944350 34OSOJ86




FINANCIAL ANALYSIS OF THE CITY AS A WHOLE CONTINUED

Changes in Net PositionThe Citywide total revenues were11342593 for the year ended December 31 2013 Property taxes

and intergovernmental revenues accounted for 590of total revenue for the year while user chargesaccounted for 385of total revenue see Table A2

Tablo A2

Chango In Nat Position

Governmental Activities BusinessType Activities Total

2013 2012 2013 2012 2013 2012

REVENUES

Program 1evenues

Charges for Sernces 5 344399 S 371098 5 4024044 3853804 5 4368443 5 4224902Oporating Grants and Contribubons 465288 433531 465288 433531

Capital Grants antl Conlnbutionsr3 l R

7330836 525279 17270 1348106 525279

onera evenues

Property Taxes 3980970 3943438 3980970 3943438Ocher Taxes 898447 911602 9497 898441 921099Grants and Contributions not

Restricted to Spedfic Programs 165485 176576 iG6485 176576UnrestGCedInveslmerN Eamings 40063 G9 199 838 1321 40907 70520

Mfsczllaneous Revenues 13959 19068 73959 19068

Total Revenues 7300441 6449791 4042152 3864622 71342593 10314413

EXPENSES

General Government 1823359 1916637 1823359 1916637

PubGC Safety 1704005 1739573 1704005 1739573Public Works 2056092 1519193 2056092 7519193Culture and Rcaeahon 252 520 237437 252520 237437lrrterest on LongTerm Debl 1799459 1191092 1199459 1191092WalerSewer 1329290 1327166 1329290 1327166

Liquor Storo 2127476 2006943 2127476 2006943

Storm Sewer 430253 429592 430253 429592

Ibtal Fxpnses 7035435 6603932 3887019 3163701 10922454 10367633

CHANGE IN NET POSITIONBEFORE TRANSFERS 265006 154141 155133 700921 420139 53220

iranslersPnmary Government 551058 548198 551058 548198

CHANGE IN NET POS1710N 815064 394057 395925 447277 420139 53220

Net Position Feginning of Vear 18049862 17655805 15030324 76477801 34080186 34133406

Change in Accounting Principle 15056881 50287 555975NetPosiGOn Beginning or Vear as Reslatod 17544174 17655805 15580037 16477801 3352427t 3s133406

NET POSITION END OF YEAR S 18360238 5 18049862 5 15584112 5 16030324 S 33944350 534080 788

Total revenues surpassed expenses increasing net position S420139 over last year

Ito





Changes in Net Position ContinuedThe Citywide cost of all governmental activities this year was7035435

Some of the cost was paid by the users of the Citys programs 344399Federal and state government payments5179fi124 subsidized certain programs

Ad valorem property taxes 53980970 other taxes 898441 and unrestricted state grants166485 also helped fund the net costs of governmental services

Transfers from the Citys businesstype operations also subsidize governmental operations120000 and make scheduled debt payments 431058

FigureA3Sources ofCitys Revenues forFisca12013

Unrestricted State o Charges forAid Other Services2 1 5

Operating Grantsand Contributions

7Property Taxes

67

oCapital Grants and

Contributionst8

FigureA4CitysExpensesforFisca12013

Debl Service

17

Culture andRecreation

4

Public Works29

GeneralGovemment

2G

Pubfc Safety24

11




Changes in Net Position Continued

Table A3

Program Expenses and Net Cost of Services

Net Revenue Cost of ServicesTotal Cost of Services After Program Revenues

2013 2012 2013 2012

GOVERNMENTAL ACTIVITIES

General Government 1823359 1916637 1743676 1817361Public Safety 1704005 1739573 824153 1505156Public Works 2056092 1519193 1118726 743279Culture and Recreation 252520 237437 207126 194346Interest and Fees on Debt 1199459 1191092 1001231 1013882

Total 7035435 S 6603932 S 4894912 5274024BUSINESSTYPE ACTIVITIES

Waterl5ewer 1329290 S 1327166 88074 34531

Liquor Store 2121476 2006943 185196 191820Storm Sewer Utility 430253 429592 118975 136248

Total 3887019 S 3763701 S 154295 226351

FINANCIAL ANALYSIS OF THE CITY AT THE FUND LEVEL

Governmental Funds

As the City completed the year its govemmental funds reported a combined fund balance of

10991818

Revenues for the Citys govemmental funds were 7942453 while total expenditures were

8486138 Cost of services in the public works category increased significantly in the current yearcompared to prior year due to street maintenance costs of 5500000 Since these were repairs to

streets they did not meet the capitalization criteria and these costs will not be incurred in the next year

The General Funds fund balance increased 205467 from the prior year This is due primarily to

revenues coming in over budget and expenditures being under budget

The Debt Service Fund balance increased S5493315 due primarily to the issuance of the 2013A GO

Improvement and Refunding Bonds of5920000 in which the refunded debt will be paid off in 2014

The Capital Projects Fund balance increased 238327 due primarily to an increase in tax collections

and also a transfer from a closed Debt Service Fund 2003b GO Bond

12



FINANCIAL ANALYSIS OF THE CITY AT THE FUND LEVEL CONTINUED

BusinessType Funds

The Sewer Funds net position decreased by 284959 due primarily to depreciation expense

The Liquor Store Funds net position increased by 50274 due to consistent revenues and expenses

The Storm Sewer Utility Fundsnet position decreased by 161240 due primarily to depreciationexpense

General FundThe General Fund includes the primary operations of the Ciiy in providing services to citizens and some

capital outlay projects

The following schedule presents a summary of General Fund Revenues

TableA4

General Fund Revenues

Year Ended ChangeDecember 31 December 31 Increase

Fund 2013 2012 Decrease

Taxes 2267602 2330672 S 63070Taxlncrements 98855 74836 24019

Special Assessments 2773 2773Licenses and Permits 161654 182006 20352

Intergovernmental 516649 470021 46628

Charges for Services 99625 103215 3590Fines and Forfeits 18961 23387 4426Interest 26100 29216 3116Refunds and Reimbursements 97467 111103 13636Miscellaneous and Other 704 311x 2413

Total General Fund Revenues 3290390 3330346 39956

Total General Fund revenue decreased by 539956 from the previous year The primary reason for thedecrease is due to reduced tax collections

13



FINANCIAL ANALYSIS OF THE CITY AT THE FUND LEVEL CONTINUED

General Fund ContinuedThe following schedule presents a summary of General Fund Expenditures

Table A5

General Fund Expenditures

Year Ended Change

December 31 December 31 Increase

2013 2012 DecreaseGeneral Government 703244 S 688423 5 14821

Public Safety 1562627 1581099 18472Highway and Streets 680910 701269 20359

Culture and Recreation 197285 187979 9306

Total Expenditures 3144066 S 3158770 5 14704

The General Funds expenditures decreased 14704 or 05 from 2012 This decrease is due

primarily to the City controlling costs and maintaining revenue sources

General Fund Budsetarv Hlohlisahts

Over the course of the year the City revised the annual operating budget

Actual revenues were66724 more than expected This is primarily due to mare than expectedtax increments intergovernmental revenues charges for services and refunds andreimbursements

The actual expenditures were 114261 less than budget This is primarily due to the Citysprudent spending

CONSTRUCTION PROJECTS AND DEBT SERVICE

Tax revenues special assessments and charges for services are used to fund the bond payments for

all previous bond issues The City issued the 2013A GO Improvement Refunding Bonds to advance

refund series 20038 20048 and 2005A

The City had two new projects that were started in the current year for Road Maintenance for road

repairs and concrete boulevards that are being funded from the Citys State Aid Road Construction

Fund

1a




CAPITAL ASSETS

By the end of 2013 the City had invested approximately 57800000 net of accumulated depreciationin a broad range of capital assets including buildings improvements equipment and infrastructure

see Table A6 More detailed information about capital assets can be found in Note 4A5 to thefinancial statements Total depreciation expense for the year was1823273 including the enterprisefunds

Table A6

The Citys Capital Assets

GovernrnerW BusinessTypo

AClrvrtie5 Actlvities Total

2073 2012 2013 2012 2073 2072

Lantl 5 8279742 5 8279742 S 354454 S 35M1454 S 883A196 S 863496

ConstructioninPrpgress 64b43 81789 GAB3 81789

BcAaings and lmprovemenls 3422379 3422379 14347248 14347248 17769565 17164565

Infrastructure 27 tO7A51 e6698500 27107451 26898503

Machinery anO Eqwpment 7909765 1882815 1893 1893 2099748 2072778

Vehitlas 2d20201 2319201 2420201 2379207

Disrnbutbn and Colleabn System 20556508 2055b508 20558503 20558508

less AccumWalod Deprecia6an 1106687221 9877143 9976124 19141e30 208428481 119018573

1011 S 32337819 5 33007123 3 25A72047 5 263057A1 5 57803666 S 59372964

LONGTERM LIABILITIES

Atyearend the City had approximately 42370000 in longterm liabilities outstanding

The Citys governmental activities and businesstype activities net longterm debt increased3591174 is due to the issuances of the refunding bonds

The Citys LongTerre Liabilities

2013 2012


General Obligation Bonds 1940000 2120000GO Improvement Bonds 17410000 12955000Tax Increment Bonds 6210000 0350000Revenue BondsEDA 4685000 a825000

Promissory Note 323759 427828

Equipment Certificates of Indebtedness 73500

Capital Lease Payabte 42833 144833Bond Premium 20600 13142Compensated Absences 162818 158045

Total Governmental AcUvitles 30827310 26993848

BUSINESSTYPEACTIVITIES

General Obligation Bonds 11530000 11700000

Compensated Absences Payable 50005 45653Bond Premium 31799 34979

TotalBusinessTypeACUVities 11611844 11780632

Total CityWide Debt 42439154 38774480

15




FACTORS BEARING ON THE CITYS FUTURE

The City presently owns property which is for sale This includes housing commercial and industrial

land The sale of these properties will have a very positive impact on the Citys financial picture byreducing debt increasing tax base and providing jobs within the community In addition any actions

taken by the State Legislature with changes in Local Government Aid LGA and Market ValueExclusion MVE would have an impact on the City The City has received a letter of intent from

Superior Silica Sand to sell 30 to 40 acres in the ESSBY development

CONTACTING THE CITYSFINANCIAL MANAGEMENT

This financial report is designed to provide our citizens taxpayers customers investors and creditorswith a general overview of the Cilys finances and to demonstrate the Citys accountability for themoney it receives If you have questions about this report or need additional financial informationcontact Richard Hill Finance Director PO Box 910 North Branch Minnesota 55056

X76

BASIC FINANCIAL STATEMENTS

GOVERNMENTWIDE FINANCIAL STATEMENTS


STATEMENT OF NET POSITION

DECEMBER 31 2013

Primary Government Component Unit

Governmental BusinessType Water and LightActivities Activities Total Commission

ASSETS

Cash and Investments S 5058757 S 1134585 S 6193342 S 331160Cash Held in Escrow 5812354 5812354Recewables

Taxes 2254i 225477Accounts 27969 27969 867676

Special Assessments 6088232 187220 6275452

Other 70948Accrued Interest 9861 4 9865Due from Other Governments 35667 35667Due from Component Unil 1827 395691 397518Due from Primary Government 37847

Inventory 278981 278981 222332

Prepaid Items 5813 5813

LongTerm Receivables 130436 130436Land Held for Resale 95000 95000Restncted Assets

Cash and Investments 1870848Capital Assets

Land and Construction In Progress 8344585 354454 8699039 98930Other Capital Assets Net of Depreciation 23987034 25117593 49104627 25904883

Total Assets 49823012 27468528 77291540 29404624

LIABILITIES

Current LiabilitiesAccounts Payable 124918 12295 137213 203042Accrued LiabibGes 28501 9894 38395 22114Customer Deposits 9615 9615 93595Rate Stabilization Reserve 147880

Other Liabilities 70948 70948Accrued Interest Payable 460052 133577 593629 277119Due to Other Governments 187 20202 20389Due to Primary Government 397518Due to Component Unit 12191 25G56 37847

LongTerm Liabilities

Due within One Year 2120237 305245 2425482 930000Due In More than One Year Net of

Unamortized DiscounUPremium 28707073 17306599 40013672 16287987Total Liabilities 31462774 17884416 43347190 18359255

NET POSITION

Net Investment in Capital Assets 7555706 13910248 21465954 8783815Restricted For

Debt Service 10203042 10203042Redemption and Replacement Funding 1593729Economic Development 392046 392046Tax Increment Financing 82286 82288

CapitalOutlay 18736 16736Unrestricted 108420 1673864 1782284 667825

Total Net Position 18360238 S 15584112 5 33944350 5 11045369

Seearcompanying Notes to the Financial Statements17


STATEMENT OF ACTIVITIES


Program Revenues

Charges for Operating Grants Capital Grants

FunctionslPrograms Expenses Services and Contributions and COn1flbUilOrls

Primary Government

Governmental ActivitiesGeneral Government S 1823359 S 22024 S 57659 S

Public Safety 1704005 126334 164007 589511Public Works 2056092 196041 741325Culture and Recreation 252520 45394

Debt Service 1199459 198228Total Governmental Activities 7035435 344399 465288 1330836

BusinessType Actvities

WaterlSewer 1329290 1417364

Liquor 2127476 2312672Storm Sewer Utility 430253 294008 17270

Total BusnessTypeActivities 3887019 4024044 17270

Total Primary Government 5 10922454 5 4368443 5 465288 S 1348106

Component Unil

Water and Light Commission S 5382944 S 5651075 59268

General Revenues

Taxes

Property Taxes Levied for General PurposeTax Increment Financing

Grants and Contributions not Restricted to Specific ProgramsUnrestricted Investment Earnings LossMiscellaneous

TransfersTotal General Revenues and Transfers

Change in Net Position

Net Position Beginning of Year

Change in Accounting Principle

Net Posaion Beginning of Year as Restated

Net Position End of Year

78

Net Expense Revenue and Chan4es in Nel Position

Primary Government Component Unit

Water and

Governmental BusinessType LightActivities Activities Total Conunissicn

1743676 5 1743676824153 8241531118726 1118726207126 2071261001231 10012314894912 4894912

88074 88074

185196 185196

118975 118975154295 154295

4894912 154295 4740617

327399

3980970 3980970

898441 898441

166485 16648540063 838 40901 497773959 73959 38254551058 5510585710976 550220 5 160756 33277

816064 395925 420139 36067618049862 16030324 34080186 10828571505688 150287 555975 14387817544174 15980037 33524211 1068469318360238 5 15584111 33944350 S 11045369

19

FUND FINANCIAL STATEMENTS

CITY OF NORTH BRANCH MINNESOTABALANCE SHEET

GOVERNMENTAL FUNDS

DECEMBER 31 2013

CAPITAL NONMAJOR TOTAL

GENERAL DEBT SERVICE PROJECTS GOVERNMENTAL GOVERNMENTAL

FUND FUND FUND FUNDS FUNDS

ASSETS

Cash and Investments 51441 S 4550236 S S 457080 S 5058757Cash Held in Escrow 5812354 5812354

Receivables

Accounts 26352 1677 27969Taxes 743694 38694 35169 7920 225477Special Assessments 2748D 6065861 891 6098232

Accued Interest 18 9843 9861Loans 51383 79053 73D436

Due From Other Funds 2413611 2413G71

Due From Otherfvernments 23774 1294 10599 35667Oue From Component Units 1627 1827Prepaid Item 5813 5813

Land Held for Resale 95000 95000

Total Assets S 2686010 S 76478605 S 783737 5 554652 S 19905004

LIABILITIES DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LiabilitiesAcwents Payable 54694 S 3157 S 57539 S 9528 S 124918Accrued Liabihtics 28187 314 28501Other Liabilities 9615 9615Due to Other Funds 2159134 254477 2413611Due to Other Governments 787 787

Due to Component Units 72191 12197

Total Liabddies 104874 3157 2216873 264319 2589023

Deferred Innows of Resources

Unavailable Revenue on Property Taxes 113773 35569 29516 7440 186298Unavailable Revenuo on Special Assessments 27391 6064200 891 6086482

Unavailable Revenue on Cont2U for Deed 51383 51383

Total Deferred Inflovrs of Resources 135764 6099769 81790 7440 6324163

Pond Betances Defic41Nonspendable

Prepayments 5813 5813ReslriUed 10375679 487459 10863138Committed 49562 49562

Unassigned 2442759 2114726 2541287 73305

Total FUnd Balances Deficip 2447972 70375679 2714726 282893 10991878

Total Liabilities and Fund Balances 2688070 S f6 A78605 S 183737 5 554652 5 19905004

See accompar7ying Notes fo Finanaa Slafements

20

CITY OF NORTH BRANCH MINNESOTARECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

STATEMENT OF NET POSITIONGOVERNMENTAL ACTIVITIES

DECEMBER 31 2013

TOTAL FUND BALANCES FOR GOVERNMENTAL FUNDS 10991818

Total net position reported for govemmental activities in the statement of net

position is different because

Capital assets used in governmental funds are not financial resources and

therefore are not reported in the funds

Some of the Citys property taxes and special assessments will be collectedafter yearend but are not available soon enough to pay far the currentperiodsexpenditures and therefore are reported as unavailable revenue rn the

govemmental funds

Interest on longterm debt is not accrued in governmental Funds but rather is

recognized as an expenditure when due Accrued interest for generalobligation bonds is included in the statementof net position

Longterm liabilities that pertain to governmental funds including bonds

payable are not due and payable in the current period and therefore are not

reported as fund liabilities All liabilities both current and longterm are

reported in the statement of net position

Bonds PayableEquipment Certificate PayableUnamortized Premiums DiscountsCompensated Absences PayableNotes PayableObligations Under Capital Leases

TOTAL NET POSITION OF GOVERNMENTAL ACTIVITIES

32331619

6324163

460057

S 302450007350020600

162818

32375942833 30827310

S 18360238

See accornpanyinq Notes fo Financial Statements

21


STATEMENT OF REVENUES EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDSYEAR ENDED DECEMBER 31 2013

DEBT CAPITAL NONMAJOR TOTALGENERAL SERVICE PROJECTS GOVERNMENTAL GOVERNPAENTAL

FUND FUND FUND FUNDS FUNDSREVENUESTaxes 2247602 939251 740779 73759 4021391

Tax Increments 98855 298242 356793 753890Tax Abatement 8133 137253 145386Licenses and Permds 161654 161654Intergovernmental 516649 198228 805714 595 1521786Charges for Services 99625 99625Fines and Forfeits 18961 18947SpeciatAssessments 2773 928456 1026 932255Interest 26100 1837 2501 13293 40063RelundsandRembursements 97467 14563 172030Contributions and Donations 301700 30000Misce7Wneaus 704 56732 1182 47394 106012

Total Revenues 3290390 2419078 1573898 659087 7942453

EXPENDITURES

C rrentu

GeneralGovemment 703244 549276 115298 1367818PublicSatety 1562627 525 1563152Highways and Streets 680910 597628 1278738Culture and Recreation 197285 197285Miscellaneous 4661 28508 33169

Capdal0utlay 281547 291647TIF and Tax Abatement Payments 410639 470639Debt Service

Principal 2131069 2131069Fiscal Agent Fees 9118 9178Interest 1190349 13154 1203503TolalExpenditures 31441766 3330536 1457091 554445 8486138

EXCESS OF REVENUES OVER

UNDER EXPENDITURES 146324 911458 176807 104642 543685OTHER FINANCING SOURCES USES

Bond Proceeds 5920000 5920000eontl Issuance Discount 34040 34040Egwpment CertiBCate Proceeds 73500 73500Transfers In 136743 612073 123260 80563 952039Transfers Out 77000 93260 75240 755481 400987

Total Outer Financing Sources fUsesj 59143 6404773 121520 74918 4510518

NET CHANGE IN FUND BALANCES 205467 5493315 238327 29724 5966833

Fund Balances DeGCit Beginning of Vear 2242505 4882364 2353053 253169 5024985

FUND BALANCES DEFICIT END OF YEAR 2447972 10375679 4 2174726 282893 10997818

Statements

22


RECONCILIATION OF THE GOVERNMENTAL FUNDS

STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

TO THE STATEMENT OF ACTIVITIES



Amounts reported for govemmental activities in the statement of acfivifies are

different because

Governmental funds report capital outlays as expenditures However in the

statement of activities assets are capitalized and the cost is allocated over their

estimated useful lives and reported as depreciation expense This is the amount

by which depreciation exceeded capital outlays in the current period

Capdal OutlayDeprecation

The governmental funds report bond proceeds as financing sources while

repayment of bond principal is reported as en expenditure In the statement ofnet position however issuing debt increases longterm liabilities and does not

affect the statement of activtlies end repayment of principal reducos tho liabilityAlso governmental funds report the effect of premiums and discounts when debtis first issued whereas these arnounts are amortised in tho statement of activitiesInterest is recognized as an expenditure in the governmental funds when it is dueIn the statement of activities however interest expenso is recognized as it

accrues regardless of when it is due The net effect of these differences is the

treatment of general obligation bonds and related items is as follows

Payment of Capital Lease PrincipalPayment of Promissory Note

Repayment of Debt PrincipalBond Proceeds

Change in Accrued Interest ExpenseProceeds ofEquipment CertificateBond Discount

Amortization of Bond Premium Discount

In the statement of activities compensated absences are measured by the

amounts earned during the year In the governmental funds however

expenditures for these items are measured by the amount of financial resources

used essentially the amounts actually paid

Change in Compensated Absences

Delinquent property faxes and special assessments receivable will be collectedsubsequent to yearend but are not available soon enough to pay for the current

periodsexpenditures and therefore are deferred inflows of resources in the

govemmental funds

Oefaned Inflow of Resources December 31 2012

Deferred Inflow of Resources December 31 2013

CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES

313975

989579

S 5966833

G756D4

102000104069

1925000

5920000306

7350034040

298 3828383

4773

6966172

6324163 642009

5 816064

Soe accompanying Notes fo Frnanciaf Statements

23


STATEMENT OF NET POSITIONPROPRIETARY FUNDS

DECEMBER 31 2013

BUSINESSTYPE ACTIVRIES ENTERPRISE FUNDSMUNICIPAL STORM SEWER

SEWER UOUOR STORE UTILITYFUND FUND FUND TOTALS

ASSETS

CURRENT ASSETSCash and Investments

Receivables687672 106101 S 340812 5 1134585

Accrued Interest 4 4

Certified Delinquent Utility Bills 173478 13742 187220Due hom Ccmponent Units 338351 57340 395691Inventories 278981 278981

Total CurrentAssets 1199505 385082 471894 1996481

NONCURRENT ASSETS

Capital Assets

Land 40000 28000 286454 354454Building and Improvements 13665325 681921 14347246Machinery and Equipment 155680 27449 6634 189963Infrastructure 11433908 9122600 20556508

25294913 737370 9415888 35448171Less Axumulated Depreciation 6938270 257000 780854 9976124

Nel Capital Assets 18356643 480370 6635034 25472047

Total Noncurrent Assets 18356643 480370 6635034 25472047

Total Assets 19556148 865452 7046928 27468528

See accompanying Notes to Financial Statements

24


STATEMENT OF NET POSITION CONTINUEDPROPRIETARY FUNDS

DECEMBER 31 2013

LIABILITIES AND NET POSITION

CURRENT LIABILITIESAccounts PayableSalaries and Wages PayableDue to Other GovernmentsDue to Component UnitOther LiabilityAccrued Interest PayableAccrued Compensated AbsencesBonds Payable

Total Current Liabilities

LONGTERM LIABILTIES

Bonds Payable Net of

UnamortedBond DiscountsAccrued Compensated Absences

Total longTerm Labilities

Total Liabilities

NET POSRIONNet Investment in Capital AssetsUnrestricted

Total Net Position

BUSINESSTYPEACTIVITIES ENTERPRISE FUNDS

SEWER AdUNICIPAL STORM UTILITYFUND IIQUOR FUND TOTALS

3510 4883 3902 S 12295

3009 4439 2446 989420202 20202

25656 2565670948 10948121494 9519 2564 1335771737 1903 1605 5245

240000 50000 10000 3G0000466354 90946 20517 577817

10806799 315000 140000 1126179914834 16253 13113 44800

10821 G33 331253 153713 11306599

ii 237987 122199 174230 11884416

7309844 115370 6465034 13910248958317 327883 387664 1673864

S 8268161 5 443253 6872698 15584112

See accompanying Notes to Financial Statements

25

CITY OF NORTH BRANCH MINNESOTASTATEMENT OF REVENUES EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDSYEAR ENDED DECEMBER 31 2013

BUSINESSTYPEACTIVITIES ENTERPRISE FUNDSMUNICIPAL STORM

SEWER LIQUOR STORE SEWER UTILITY

FUND FUND FUND TOTALS

OPERATING REVENUESSales 2312672 2312672Costs of Goods Sotd 1668065 1688065Charges for Services 1417364 294008 7711372

Total Gross Profit and Operating Revemes 1417364 624607 294008 2335979

OPERATING EXPENSESPersonal Services 175849 254327 136754 566930Materials and Supplies 34447 70175 3263 47879Contractual Services 211833 733255 56509 401597Depreciation 588045 18728 227521 833694

Total Operating Expenses 1070768 415885 424047 1850100

OPERATING INCOME LOSS 407196 208722 1300391 485879

NONOPERATING REVENUESEXPENSESInvestment Earnings 508 78 252 838

Intergovernmental 17270 17270Interest 1318132 23095 8185 347412FlscalAgentFees 990 437 21 14421

Total Nonoperating Revenues Expenses 318614 23448 11316 1330746

INCOME LOSS BEFORE TRANSFERS 68582 185274 118723 155133

TRANSFERS OUT 3735411 135000 42517 5570581

CHANGE IN NET POSITION L84959 50274 1G1240 1395925

Net Postion Beginning of Year 8503407 392979 7033938 16030324

Change in Accouming Pnncrple 50287 502871Net Position Beginning of Year as Restated 8553120 392979 7033938 15580037

NET POSRION END OF YEAR S 8268161 443253 6872698 5 75584112

See accompanying Notes fo Finmtclaf Statements

26


STATEMENT OF CASH FLOWS

PROPRIETARY FUNDSYEAR ENDED DECEMBER 31 2013

BUSINESSTYPE ACTIVITIES ENTERPRISE FUNDSSEWER MUNICIPAL STORM SEWERFUND LIQUOR UTILITY FUND TOTALS

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers 1348484 2312672 297246 3956402Cash Paid to Employees for Services 110302 254A94 1359661 560756Cash Paid to Suppliers for Goads and Services 252831 1863216 566091 2172656

Net Cash Provided Used by OperatingAcivities 925351 194962 104677 1224990

CASH FLOWS FROM NONCAPITALFINANCING ACTIVITIES

Decrease ncrease in Due From Other Funds 392399 392399Transfers to Other Funds 373541 135000 42517 551058

Intergovernmental 17270 17270Net Cash Provided Used byNangpital Rnandng Activities 16858 1135000 25247 741389

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES

SpeaalAssessments 1170 342a 2254Interest Paid 323767 24776 6357 354900Principal Payments on LongTerm Debt 110000 f50000 10000 170000

Net Cash Provided Used by Capitaland Related Financing Activities 434937 74776 12933 522846

CASH FLOWS FROM INVESTING ACTIVITIESInterest Received 508 78 252 838

NET INCREASE DECREASE IN CASHAND CASH EQUIVALENTS 509780 14736 66749 561793

Cash and Cash Equivalents Beginning ofYear 177892 120837 274063 572792

CASH AND CASH EQUIVALENTS END OF YEAR 687672 106101 340812 1134585

See accompanying Nvles fo Financial Slaternenfs

2


STATEMENT OF CASH FLOWS CONTINUEDPROPRIETARY FUNDS


RECONCILIATION OF OPERATING INCOME LOSS TO

CASH FLOWS FROM OPERATING ACTIVITIES

BUSINESSTYPE ACTIVITIES ENTERPRISE FUNDS

SEWER MUNICIPAL STORM SEWERFUND LIQUOR UTILITY TOTALS

Operating Income Loss S 407196 S 208722 130039 S 465879Adjustments to Reconc8e Operahng Income Lossto Net Cash Provided Used by Operating Activities

Deprecratron 588045 18128 227521 833694Increase Decrease in Assets

Due from Component Units 68880 3238 65642Inventones 33760 33760PrePayrnents 787 787

Increase Decrease in LiabilitiesAccounts Payable 3878 1422 3163 707Accrued Liabilities 937 423 422 1782Accrued Compensated Absences 4610 590 372 4392Due to Other Governments 770 770Due to Component Units 2679 2679

Net Cash Povided Used by OperahngAdivdles 925351 S 194962 S tIM677 1224990

See accompanying Noles to Financial Statements

28

CITY OF NORTH BRANCH MINNESOTANOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31 2013

NOTE 10 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A Financial Reporting Entity

The City of North Branch the City was incorporated under the laws of the State of

Minnesota and operates under the State of Minnesota Statutory Plan A form of

government The governing body consists of a five member City council elected byvoters of the City The financial reporting entity consists of the City PrimaryGovernment and the component unit legally separate organization for which theprimary government is financially accountable The component unit discussed below is

included in the Citys reporting entity because of the significance of the operational or

financial relationship with the City

The City of North Branchs financial statements are prepared in accordance with

generally accepted accounting principles GAAP The Governmental AccountingStandards Board GASB is responsible for establishing GAAP for state and local

governments through its pronouncements statements and interpretations The more

significant accounting policies established in GAAP and used by the City are discussed

above

Component Units

Component units are legally separate entities for which the City Primary Govemment is

financially accountable or for which the exclusion of the component unit would render

the financial statements of the Primary Government misleading The criteria used todetermine if the Primary Government is financially accountable for a component unit

include whether or not the Primary Government appoints a voting majority of an

organizationsgoverning body and has the ability to impose its will on the governingbody or there is a specific financial benefit or to impose a specific financial burden on

the Primary Government

The combined financial statements of the City include the City of North Branch

Economic Development Authority EDA The EDA is an entity legally separate from the

City The City reports the EDA as blended component unit in accordance with GASB 61

because the services provided by the EDA are financing services provided solely to the

primary government the City

The EDAsgoverning board is appointed by the City Council The City Council has the

ability to approve or modify the EDAsbudget and to veto or overrule other decisions of

the EDAsgoverning body The City also guarantees the general obligation debt of the

EDA The City does not prepare separate financial statements for the EDA

The component unit column in the governmentwide financial statements include the

financial data of the North Branch Municipal Water and Light Commission Commissionwhich is an entity legally separate from the City In accordance with GASB 61 the NorthBranch Municipal Water and Light Commission is reported as a discretely presentedcomponent unit because it is an entity legally separate from the City and it does not

meet the criteria of GASB 61 for inclusion in the Citysfinancial statements as a blended

component unit

29


DECEMBER 31 2013

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

A Financial Reporting Entity Continued

The Commissionsgoverning board members are appointed by the City Council

Complete financial statements for the Commission are prepared and are on file with the

City

B GovernmentWideand Fund Financial Statements

The governmentwide financial statementsie the statement of net position and the

statement of activities report information about the primary government and itscomponent unit These statements include the financial activities of the overall Citygovernment Eliminations have been made to minimize the doublecounting of internal

activities Governmental activities which normally are supported by taxes and

intergovernmental revenues are reported separately from businesstypeactivities which

rely to a significant extent on fees and charges to external parties for support Likewisethe primary government is reported separately from the legally separate component unitfor which the primary government is financially accountable

The statement of activities demonstrates the degree to which the direct expenses of

each function of the Citys governmental activities and different businesstypeactivity are

offset by program revenues Direct expenses are those that are clearly identifiable witha specific function or activity Program revenues include 1 fees fines and chargespaid by the recipients of goods services or privileges provided by a given function or

activity and 2 grants and contributions that are restricted to meeting the operational or

capital requirements of a particular function or activity Revenues that are not classifiedas program revenues including all taxes are presented as general revenues

Separate financial statements are provided for governmental funds and proprietaryfunds The City has no fiduciary funds Major individual governmental funds and majorindividual enterprise funds are reported as separate columns in the fund financialstatements

C Measurement Focus and Basis of Accounting

The governmentwide and proprietary fund financial statements are reported using the

economic resources measurement focus and the accrual basis of accountingRevenues are recorded when earned and expenses are recorded when a liability is

incurred regardless of the timing of related cash flows Property taxes are recognizedas 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 providerhave been met

30j


DECEMBER 31 2013


C Measurement Focus and Basis of Accounting Continued

Governmental fund financial statements are reported using the current finanaalresources measurement focus and the modified accrual basis of accounting Revenues

are recognized as soon as they are both measurable and available The City considersall revenues to be available if they are collected within 60 days after the end of the

current period Expenditures are recorded when the related fund liability is incurredexcept for principal and interest on general longterm debt compensated absences and

claims and judgments which are recognized as expenditures to the extent that theyhave matured Proceeds of general longterm debt and acquisitions under capital leasesare reported as other financing sources

Property taxes franchise taxes licenses and interest associated with the current fiscal

period are all considered to be susceptible to accrual and so have been recognized as

revenues in the current fiscal period Only the portion of special assessments receivabledue within the current fiscal period is considered to be susceptible to accrual as revenue

of the current period All other revenue items are considered to be measurable andavailable only when cash is received by the government

The City reports the following major governmental funds

General Fund The General Fund is the general operating fund of the City It accountsfor all the financial resources of the general government except those required to be

accounted for in another fund

Debt Service Fund The Debt Service Fund is used to account for the accumulation of

resources for and the payment of general longterm debt principal interest and related

costs

Capital Protect Fund The Capital Project Fund is used to account for financial

resources to be used for the acquisition or construction of major capital facilities or

equipment

The City reports the following major proprietary funds

Sewer Fund The Sewer Fund provides for the operation and maintenance of thewastewater collection and treatment facilities The fund charges user fees to those

served by the system

Municipal Liouor Fund The Municipal Liquor Fund promotes moderation and control in

the sale and use of alcohol beverages while simultaneously generating income for the

community

Storm Sewer Utility Fund The Storm Sewer Utility Fund provides for the maintenanceto the Citys storm sewer system The fund charges user fees to those served by the

system

31


NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31 2013


C Measurement Focus and Basis of Accounting Continued

Asa general rule the effect of interfund activity has been eliminated from the

governmentwide financial statements Exceptions to this general rule are paymentsinlieu of taxes other charges between the various functions of the City Elimination of

these charges would distort the direct costs and program revenues reported for the

various functions concerned

Proprietary funds distinguish operating revenues and expenses from nonoperatingitems Operating revenues and expenses generally result from providing services and

producing and delivering goods in connection with a proprietary fundsprincipal ongoingoperations The principal operating revenue of the Citys enterprise funds are charges to

customers for sales of goods and services Operating expenses for enterprise 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

D Assets Liabilities Deferred Inflows of Resources and Net Position or Equity

1 Cash and Investments Including Cash EquivalentsCash balances from all funds including cash equivalents are invested to the extent

available in various securities as authorized by Minnesota Stafrrtes Investment

earnings are recorded in the individual fund carrying the investment Investments are

stated at fair value Cash and investments of the Commission component unit are

maintained and invested separately

Cash equvalents are considered to be shortterm highly liquid investments that are

readily convertible to cash and have original maturities of three months or less

Cash and cash equivalents consist of checking and saving certificate accounts cash

on hand and money market savings accounts

For the purpose of the statement of cash flows of the proprietary fund types the Cityconsiders all cash and investments under the classification of current assets to be

cash and cash equivalents

2 ShortTenn Interfund ReceivableslPayablesDuring the course of operations numerous transactions occur between individualfunds for goods provided or services rendered These receivables and payables are

classified as due from other funds due to other funds interfund receivable or

interfund payable on the fund financial statements Any residual balances

outstanding between the governmental activities and businesstype activities are

reported in the governmentwide financial statements as internal balances

32


DECEMBER 31 2013


D Assets Liabilities Deferred Inflows of Resources and Net Position or Equity Continued

3 Accounts Receivable

Property taxes and special assessment receivables have been reported net of

estimated uncollectible accounts Because utility bills are considered liens on

property no estimated uncollectible amounts are established Uncollectible amountsare not material for other receivables and have not been reported

4 Taxes Receivable

Taxes which remain unpaid are classified as delinquent taxes receivable Delinquenttaxes represent the past seven years of uncollected tax years Revenue from these

delinquent property taxes that is not collected within 60 days of yearend is deferredbecause it is not known to be available to finance the operations of the Cily in the

current year No allowance for uncollectible taxes has been provided as such

amounts are not expected to be material

Property Tax Collection Calendar

The City levies its property tax for the subsequent year during the month ofDecember In Minnesota the lien date and assessment date is January 2 Theproperty tax is recorded as revenue when it becomes available The County is the

collecting agency for the levy and then remits the collections to the City All taxes not

collected as of December 31 each year are shown as delinquent taxes receivable

The county auditor make up the tax list for all taxable property in the City applyingthe applicable tax capacity rate to the tax capacity value of individual properties to

arrive at the actual tax for each property The county auditor also collects all specialassessments except for certain prepayments paid directly to the City

The county auditor turns over a list of taxes and special assessments to be collected

on each parcel of property to the county treasurer in January of each year Propertyowners are required to pay onehalf of their real estate taxes by May 15 and thebalance by October 15

Within 30 days after the May settlement the county treasurer is required to pay 70

percent of the estimated collections of taxes and special assessments to the Citytreasurer The county treasurer must pay the balance to the City treasurer within 60

days after settlement provided that after 45 days interest begins to accrue

Within ten business days after November 15 the county treasurer shall pay to each

taxing district except any school district 100 percent of the estimated collections

arising from taxes levied by and belonging to each taxing district from May 20 toNovember 20

33


DECEMBER 31 2013



5 Special Assessments

Special assessments are levied against the benefited properties for the assessable

costs of improvement projects in accordance with Minnesota Statutes Assessmentsare collectible over a term of years at an interest rate established by the Cily Council

upon adoption of each assessment roll Any annual installments remaining unpaidas of November 30th of each year are certified to the County for collection with

property taxes during the following year Property owners are allowed to prepayfuture installments without interest or prepayment penalties

In the governmental fund financial statements special assessment levies are

recorded as a receivable and as unavailable revenue at the time of the levyUnavailable revenue is recognized as current revenue as the annual assessment

installments become measurable and available Interest on special assessments is

also recognized when it becomes measurable and available

Delinquent special assessments represent the past seven years of uncollected

special assessments that have not been collected within 60 days of yearend

6 InventoryThe costs of inventory items are recognized as expenditures in governmental fundswhen purchased These funds do not maintain material amounts of inventories The

costs of inventory items in the proprietary funds are valued at cost which

approximates market using the first infirst out FIFO method

7 Prepaid Items

Payments made to vendors for services that will benefit future periods are recordedas prepaid items Prepaid items are reported using the consumption method and

recorded as expendituresexpenses at the time of consumption

8 Capital Assets

Capital assets which include property plant equipment and infrastructure assets

eg roads bridges sidewalks and similar items and intangible assets such as

easements and computer software are reported in the applicable governmental or

businesstype activities columns in the governmentwide financial statements

Capital assets are defined by the City as assets with an estimated useful life in

excess of one year and an initial individual cost of more than 75000 for easements

purchased by governmental funds 20000 for easements purchased by the Sewer

Fund 7500 for easements purchased by the Storm Sewer Fund 25000 for

software S5000 for assets purchased with federal funds and 15000 for all other

assets Such assess 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


NOTES TO THE FINANCIAL STATEMENTSDECEMBER 31 2013



8 Capital Assets ContinuedPursuant to GASB Statement 34 the City has elected to record generalinfrastructure assess acquired since 1980 These assets are reported at historical

cost Pursuant to GASB Statement 51 the City elected to report intangible assets

acquired since 2010 The City has not acquired any intangible assets since the

implementation of GASB 51

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

Major outlays for capital assets and improvements are capitalized as projects are

constructed Interest incurred during the construction phase of capital assets of

businesstype activities is included as part of the capitalized value of the assets

constructed For the year ended December 31 2013 no interest was capitalized in

connection with construction in progress

Capital assets of the Primary Government are depreciated using the straight linemethod over the following estimated useful lives

Assets Years

Buildings and Improvements 20 40

Machinery Equipment and Software 5 15

Vehicles 5 15

Infrastructure 20 40

Proprietary Funds

Buildings and Improvements 20 50

Machinery Equipment and Software 5 30

Distribution and Collection Systems 20 50

9 Compensated Absences

It is the Cityspolicy to permit employees to accumulate earned but unused vacationand sick pay benefits All PTO benefits chat are vested as PTO is accrued when

incurred in the governmentwideand proprietary fund financial statements

A liability for these amounts is reported in governmental funds only if they have

matured for example as a result of employee resignations and retirements In

accordance with the provisions of Statement of Governmental Accounting Standards

No 16 Accounting for Compensated Absence no liability is recorded for nonvesting

accumulating rights to receive PTO benefits

35



DECEMBER 31 2013



10 LongTerm ObligationsIn the governmentwide financial statements and proprietary fund types in the fund

financial statements longterm debt and other longterm obligations are reported as

liabilities in the applicable governmental activities businesstype activities or

proprietary fund type statement of net position Bond premiums and discounts are

amortized over the life of the bonds using the effective interest method Bonds

payable are reported net of the applicable bond premium or discount

in the fund financial statements governmental fund types recognize bond premiumsand discounts during the current period The face amount of debt issued is reportedas other financing sources Premiums received on debt issuances are reported as

other financing sources while discounts on debt issuances are reported as other

financing uses

11 Fund Balance and Net Position

Net position represents the difference between assets liabilities and deferredinflows of resources in the governmentwide financial statements Net Investment in

capital assets consists of capital assets net of accumulated depreciation reduced bythe outstanding balance of any longterm debt used to build or acquire the capitalassets Net position is reported as restricted in the governmentwide financial

statements when there are limitations on their use through external restrictionsimposed by creditors grantors or laws or regulations of othergovernments

In the fund financial statements governmental funds report components of fund

balance to provide information about fund balance availability for appropriationNonspendable fund balance represents amounts not available for appropriationRestricted fund balance represents amounts available for appropriation but intended

for a specific use and legally restricted by outside parties Committed fund balance

represents constraints on spending that the government imposes upon itself by highlevel formal action prior to the close of the fiscal period Assigned fund balance

represents resources intended for spending for purpose set by the government bodyitself or by some person or body delegated to exercise such authority in accordance

with policy established by the council Pursuant to the Citys Fund Balance Policythe City Administrator andor Finance Director have been authorized to assign fundbalance that reflects the Citys intended use of those funds Unassigned fund

balance is the residual classfication for the Citys general fund and includes all

spendable amounts not contained in the other classifications When restricted and

unrestricted fund balance is available for use it is the Citys policy to first use

restricted fund balance When committed assigned and unassigned fund balance is

available for use it is the Citys policy to use committed assigned and finallyunassigned fund balance

36


DECEMBER 31 2013



11 Fund Balance and Net Position ContinuedThe Cily Council has formally adopted a policy regarding the minimum unassignedfund balance for the General Fund The most significant revenue source of the

General Fund is property taxes This revenue source is received in two installments

during the year July and December As such it is the Citys goal to begin each

fiscal year with sufficient working capital to fund operations between each semi

annual receipt of property taxes

The Citys fund balance policy states the City will strive to maintain an unassignedminimum fund balance in the General Fund in the range of 4255 of the

subsequent yearsbudgeted expenditures At December 31 2013 the fund balanceof the General Fund was 708of the 2014 budgeted General Fund expenditures

12 Deferred Inflows of Resources

The Citys governmental fund financial statements report a separate section for

deferred inflows of resources This separate financial statement element reflects an

increase in fund balance that applies to a future period The City will not recognizethe related revenue until a future event occurs The deferred inflow of resources

occurs because governmental fund revenues are not recognized until available

collected not later than 60 days after the end of the Citys year under the modified

accrual basis of accounting The City does not have deferred inflows of resources to

report in its proprietary fund financial statements in the current year

13 Use of EstimatesThe preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to make

estimates and assumptions that affect the reported amounts of assets and liabilities

and disclosure of contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and expenses during the reportingperiod Actual results could differ from those estimates

NOTE 2 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY

A Budgetary Information

An annual budget is adopted for the General Fund Budget appropriations lapse at the

end of the year All budgets are adopted on a basis consistent with generally acceptedaccounting principles GAAP

The City Administrator is authorized to transfer appropriations within any departmentbudget Additional interdepartmental or interfund appropriations and deletions are or

may be authorized by the City Council with fund contingency reserves or additional

revenues The legal level of control is the fund level The City Council may authorizetransfer of budgeted amounts between City funds

37



NOTE 2 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY CONTINUED

A Budgetary Information Continued

Formal budgetary integration is employed as a management control device during the

year for the general fund and special revenue funds

B Deficit Fund Equity

The following funds have a deficit fund balance at December 31 2013

Oakview Land Trust S 254128Capital Projects Fund 2114726

The City plans to eliminate these deficits through future TIF revenues tax abatement

revenues future land sales assessments or transfers

NOTE 3 COMPONENTS OF FUND BALANCE

At December 31 2013 portions of the Citys fund balance are not available for appropriationdue to legal restrictions Restricted City Council actiotl Committed policy andor intent

Assigned The following is a summary of the components of fund balance

NONMAJOR CAPITAL TOTAL

GENERAL GOVERNMENTAL DEBT SERVICE PROJECTS GOVERNMENTAL

FUND FUNDS FUND FUND FUNDS

NonspendablePrepaids 5813 5813

RestrictedTax Increments 76677 76677Debt Payments 10375679 10375678Donor Purposes 18736 18736Economic Development 392046 392046

Committed

Economic Development 39312 39312Communications 10250 10250

Unassigned 2442159 1254128 2114726 X3305

Total Fund Balance 5 2447972 73r S 10375679 21147261 S u91816

36



NOTE 4 DETAILED NOTES ON ALL FUNDS

A Assets

1 DepositsThe City maintains a cash and investment pool that is available for use by all funds

Each fund typesportion of this pool is displayed on the combined balance sheet as

Cash and Investments In accordance with Minnesota Statutes the City maintainsdeposits at financial institutions which are authorized by the City Council

Custodial Credit Risk Custodial credit risk is the risk that in the event of a bankfailure the Citys deposits may not be returned to it The City does not have a

deposit policy for custodial credit risk and follows Minnesota Statutes for deposits

Minnesota Statutes require that all deposits be protected by insurance surety bondor collateral The market value of collateral pledged must equal 110 of the

deposits not covered by insurance or corporate surety bonds

Authorized collateral include US government treasury bills notes or bonds issuesof a US government agency general obligations of a state or local governmentrated A or better revenue obligations of a state or local govemment rated AA or

better irrevocable standby letter of credit issued by a Federal Home Loan Bank and

time deposits insured by a federal agency Minnesota Statutes require securities

pledged as collateral be held in safekeeping in a restricted account at the FederalReserve Bank or at an account at a trust departments ofa commercial bank or otherfinancial institution not owned or controlled by the depository

The Citys deposits in banks at December 31 2013 were entirely covered by federal

depository insurance or by pledged collateral held by the banks agent in the Citysname in amounts equal to at least 110 of the amount in excess of the federal

depository insurance as required by Minnesota Statutes

39


DECEMBER 31 2013

NOTE 4 DETAILED NOTES ON ALL FUNDS CONTINUED

A Assets Continued2 Investments

The Citys investment policy is to follow Minnesota Statutes as described below

which reduces the Citysexposure to credit custodial credit and interest rate risks

Direct obligations or obligations guaranteed by the United States or its agenciesShares of investment companies registered under the Federal Investment

Company Act of 1940 and received the highest credit rating is rated in one of the

two highest rating categories by a statistical rating agency and all of the

investments have a final maturity of thirteen months or lessGeneral obligations rated A or better revenue obligations rated AA or better

General obligations of the Minnesota Housing Finance Agency rate A or better

Bankers acceptances of United States banks eligible for purchase by the

Federal Reserve SystemCommercial paper issued by United States banks corporations or their Canadian

subsidiaries of highest quality category by a least two nationally recognizedrating agencies and maturing in 270 days or less

Guaranteed investment contracts guaranteed by United States commercial

banks or domestic branches of foreign banks or United States insurancecompanies if similar debt obligations of the issuer or the collateral pledged by the

issuer is in the top two rating categoriesRepurchase or reverse purchase agreement and securities lending agreementsfinancial institutions qualified as a depository by the government entity with

banks that are members of the Federal Reserve System with capitalizationexceeding 10000000 a primary reporting dealer in US government securities

to the Federal Reserve Bank of New York or certain Minnesota securities

brokerdealers

Interest Rate Risk Interest rate risk is defined as the risk that changes in interest

rates will adversely affect the fair value of an investment The Citys investment

policy requires the City to diversify its investment portfolio to eliminate the risk of loss

resulting from over concentration of assets in a specific maturity The policy also

states the Citys investment portfolio will remain sufficiently liquid to enable the Cityto meet all operating requirements which might be reasonably anticipatedInvestments are categorized to give an indication of the level of interest rate risk

assumed at yearend Fair market values and maturities as of December 31 2013

are as followstotal 12 Months 13 to 24 25060 1bro Than

Investment Type Falr Value or Less Months Months 601donAs

Money Markel S 225360 5 225360 5 S 5Federat Home loan Mlg Corp 58952 24 58928

FNIv1A 21813 3199 18414Mnnesota MwriGpat Money Markey Fund 1546 1546

UlAMUA4ortgage 1230 1230

USTreasuryNOte 6251513 3352898 2459502 439113

Total S 8560214 5 3579828 52459502 5 4429 5516a55

40


DECEMBER 31 2013


A Assets Continued2 Investments Continued

Credit Risk Credit risk is the risk that an issuer or other counterparty to an

investment will not fulfill its obligations State law limits investments in commercial

paper and corporate bonds to the top two rating issued by nationally recognizedstatistical rating organizations The Citys policy states the Finance Director is

expected to display prudence in the selection of securities as a way to minimize

default risk No individual investment transaction shall be undertaken which

jeopardizes the total capital position of the overall portfolio To control market pricerisks volatile investment instruments shall be avoided

Credit

Type Quality Rating Amount

WAMU Mortgage AA S 1230

Money Market Not Rated 225360Minnesota Municipal Money Markey Fund Not Rated 1546Federal Home Loan Mtg Corp AA 58952FNMA AA 21613Total 308701

Concentration of Credit Risk The risk of loss attributed to the magnitude of the

Citys investments in a single issuer The City places no limit on the amount that maybe invested in any one issuer

Summary of cash deposits and investments as of December 31 2013 are as

foliovs

Summary of DepositsCash on Hand 550

Checking 258884

Savings 5186048Investments 6560214Total Cash and Investments 12005696

tall



DECEMBER 31 2013


A Assets Continued

Investments ContinuedDeposits and Investments consist of the following at December 31 2013

l3alance

Cash and Investments Governmental Funds 5058757Cash Held in Escrow Governmental Funds 5812354Cash and Investments Proprietary Funds 1134585

Total Cash and Cash Equivalents 12005696

Interfund Receivables Payables and TransfersAt December 31 2013 due fromtoother funds were as follows

Due To Due From Amount

General Fund Nonmajor FundsOakview Land Trust S 254128Cable Franchise 349

General Fund Capital Projects Fund 2159134Total 2413611

The interfund receivablespayables noted above are related to the elimination of

negative cash balances at yearend

Due To Due From Amount

Component Unit Primary Government S 37847

Primary Government Component Unit 397518

Total 435365

The interfund receivablespayables noted above are related to the transactionsbetween the Primary Government and the Component Unit

Interfund transfers for the year ended December 31 2013 were as follows

Tansfertn

Nrnmajor Debt Capital

Genera GovemmenFel Scrnco Projects Server Lpuor Storm Sevrer

Fund Funds Fund Fund FuM Fund Fund Total

Trenster Out

CrnmentPnm rv Ga oY

General Fund S S 16143 S S 5 E 120000 5 S 136743

Nonmator Governmental Funds 60583 80563Debt Service Funtl 77000 43775 75240 373541 42517 672073Capital Vrejects Fund 75000 33260 15000 123260

Total 5 77000 5 155461 5 33260 S 75240 S 373Sa1 S 735000 S a2517 S 552035

42


DECEMBER 31 2013


A Assets Continued

3 Interfund Receivables Payables and Transfers Continued

The transfer from the General Fund to the Debt Service Fund was for debt

payments The transfer from Nonmajor Governmental Funds Revolving Loan Fundto the Nonmajor Governmental Funds EDA was for the levy assessments for

improvements of land held by the EDA The transfer from Nonmajor GovernmentalFunds Cable Franchise Fund to the Debt Service Fund was for debt service

payments The transfer from the Capital Projects Fund LibraryCommunity Centerto the Debt Service Fund was to cover the balances within the Industrial Park III debt

service The transfer from the Nonmajor Governmental Funds Kestrel TIF TIF 99ASenior Housing Kelly Housing TIF and the Ecumen TIF District to the NonmajorGovernmental Funds Housing Support was to set aside funds under TIF to supportfuture housing projects The transfer of a closed Debt Service Fund to the CapitalProjects Fund was to repay a portion of the interfund loan The transfer from the

Nonmajor Governmental Funds Fire Department Equipment Donation and the

Liquor Fund to the Nonmajor Governmental Funds Equipment Revolving was to

fund equipment purchases The transfer from the Nonmajor Governmental Funds

Tax Abatement to the General Fund was for administrative fees The transfer fromthe Sewer Fund to the Debt Service Fund was for operational responsibilities of theSewer Fund The transfer from the Liquor Fund to the General Fund was for

operations The transfer from Storm Water Fund to the Debt Service Fund was for

operational responsibilities of the Storm Water Fund

4 Contract for Deed Receivable

During 2006 the City sold land to Chisago County for5475 in cash and a contract

for deed receivable of 104025 with a stated interest rate of 0 At December 312013 the face amount of the remaining note 71908 has been discounted to a

present value of51383 using an effective interest rate of 4 The contract for deedwill be paid off in full as of September 20 2014

43



DECEMBER 31 2013


A Assets Continued

5 Capital Assets

Capital asset activity for the Primary Government Govemmental Activities for the

year ended December 31 2013 is as follows

Beginning EndingBalance Increases Decreases Balance

GOVERNMENTAL ACTIVITIESCapital Assets Not Being Depreciated

Land 5 8279742 S S 8279742Construction in Progress 81789 186005 202951 64843

Total Capital Assets Not BeingDepreciated 8361531 186005 202951 8344585

Capital Assets Being DepreciatedBuildings and Improvements 3422319 3422319Machinery and Equipment 1882815 26970 1909785Vehicles 2319201 101000 2420201Infrastructure 26898500 202951 27101451

Total Capital Assets Being Depreciated 34522835 330921 34853756

Less Accumulated Depreciation forBuildings and Improvements 1021x86 91948 1113434Machinery and Equipment 1179401 90919 1270320Vehicles 1603642 10320a 1706346Infrastructure 6072674 703508 6776122

Total Accumulated Depreciation 9877143 989579 10866722

Total Capital Assets Being Depreciated Net 24645692 658658 23987034

Governmental Activities Capital Assets Net 33007223 5 472653 202957 32331619

Capital asset activity for the Primary Government BusinessType Activities for theyear ended December 31 2013 is as follows

Beginning EntlingBalance Increases Decreases Balance

BUSINESSTYPE ACTIVITIES

Capital Assets Not Being DepreciatedLand 354454 5 354454

Capital Assets Being DepreciatedBuilding and Improvements 14347246 14347246

Equipment 189963 189963Infrastructure

Total Ca ital Assets Bein De reciated2055650835 093 717

2055650871735 093p g p

Less Accumulated Depreciation For

Building and Improvements 3619150 319848 3938998Equipment 114437 7380 121817Infrastructure 54088x3 506x66 5915309

Total Accumulated Depreciation 9142430 833694 9976124

Total Capital Assets Being Depreciated Net 25951287 833694 25117593

BusinessTypeActivities Capital Assets Net S 26305741 5 833694 25472047

44




A Assets Continued

5 Capital Assets ContinuedDepreciation expense was charged to functionsprograms of the PrimaryGovernment as follows

Governmental Activities

General Government 24340Public Safety 125190Public Works 774746Culture and Recreation 65303

Total Depreciation Expense Governmental Activities 989579

Businesstype Activities

Sewer 588045

Liquor 18128Storm Sewer 27521

Total Depreciation Expense BusinessType Activities 5 833694

B Liabilities

LongTerm Debt

The City issues general obligation bonds to provide funds for the acquisition and

construction of major capital facilities The reporting Citys longterm debt is segregatedbetween the amounts to be repaid from governmental activities and amounts to be

repaid from businesstypeactivities

The City issued 55920000 GO Improvement Refunding Bonds Series 2013A to refund

in 2014 the 20036 GO Improvement Bonds 2005A GO Improvement Bonds and

20046 GO Public Improvement Bonds The interest rates on the new bonds range from

55 to200 compared to 250 to475on the old bonds The lower interest rateswill reduce future debt service by over 5500000 The present value of savings is

5485000

45



DECEMBER 31 2013


B Liabilities Continued

LongTerm Debt ContinuedAs of December 31 2013 the governmental longterm bonded debt of the financial

reporting entity consisted of the following

80NDEDINDEBTEDNESS

PRIMARY GOVERNMENT

GENERAL OBLIGATION BONDS

2009A GO Street Reconstruct Bonds

20108 GO Refunding Bonds

Total Primary Government General Obligation Bonds

GENERAL OBLIGATION IMPROVEMENT BONDS

20038 GO Improvement Bonds

20048 GO Public Improvement Bonds

2005A GO Improvement Bonds

2006C GO Improvement Bonds

2007A GO Imp Bonds

2008A GO Improvement Bonds

2009C GO Refunding Bonds

2010A GO Improvement and Refunding Bonds

2013A GO Improvement Refunding Bonds

Total General Obligation Improvement BondsGENERAL OBLIGATION REVENUE BONDS

2009A Taxable Lease Revenue Bonds

Range of Original Amount

Interest Rates Issue Outstanding

300500 590000 S 530000

0653300 1720000 1410000

2 310000 1940000

250425 1405000 750000300475 5325000 3010000325425 5170000 31500003J0410 145000 95000400475a 1715000 1285000

270425 1125000 1480000110260 1940000 445000200350 1955000 12750000552000 5920000 5920000

25300000 174i0000

400595 4900000 4685000

20068 GO TIF and Refunding Bonds

20090 Tax Increment Bonds

Total General Obligation Tax Increment Bonds

Total Bond Indebtedness Government Activities

Capital Lease PayablePromissory Note Industrial Park III

2013 Equipment Certificates of Indebtedness

Bond Premium

Bond Discount

Compensated Absences

Total City Indebtedness Governmental Activities

400430 2860000 2310000350450 3900000 3900000

6760000 6210000

39270000 30245000

660740 395000 42833

500550 666216 323759

200400 73500 73500

NA 56355NIA 76955NA 162818

40404716 S 30827310

46



DECEMBER 31 2073



LongTerm Debt Continued

Range of Original Amount

Interest Rates Issue OutstandingBUSINESSTYPE ACTIVITIES

GENERAL OBLIGATION REVENUE BONDS

19998 Liquor Store Rev Bonds 500630 760000 365000PFA Sewer Bond Treatment Plant Bond 234 11500000 83200002006A Sewer Storm GO Utility Bonds 400460 880000 6800002006C GO Sewer Revenue Bonds 370410 485000 3250002008A GO Improvement Bonds 270425 90000 8000020096 GO Sewer Rev and Refunding Bonds 250400 1760000 1760000

Total Bond Indebtedness BusinessType Activities 15475000 11530000

Bond Premium NA 31799Compensated Absences NA 50045

Total City Indebtedness Business Type Activities S 15475000 S 11611844

Total GovernmentWideLongTerm Liabilities S 42439154

On June 20 2011 the City and the Minnesota Public Facilities Authority MPFA agreedto amend the terms of the GO Sewer Revenue Note of 2003 which is an outstandingobligation of the City payable to the MPFA The outstanding principal amount owed did

not change but principal payments due in the years 20112015 were reduced fromS2960000 to 5300000 and the maturity date of the note was extended ten years As a

result the interest rate of the note increased from 234 to2601 effective June 202011 Prior to the amendment total remaining interest payments from August 2011

through August 2023 were scheduled to be 51352169 Under the new terms interest

payments from August 2011 through August 2033 are scheduled to be3145954

The Taxable Lease Revenue Bonds of 2009A have a reserve requirement of 5420700which will be used to make a debt service payment if the City is unable to do so At

December 31 2013 the City had sufficient funds on deposit with the trust department of

a financial institution in order to meet its reserve requirement

The sale of ESSBY industrial land obligates the City to make a 40000 principalpayment per acre sold

c41


DECEMBER 31 2013



LongTerm Debt Continued

Capital Lease

During 2005 the City entered into a taxable lease purchase agreement to purchase two

parcels of property which both included single family homes One of the properties was

sold in 2009 and the other property is being held for a future freeway interchange projectat 400th Street

The present value of future minimum lease payments as of December 31 2013 is

542833 The lease is payable in semiannual installments and matures in February2014 Depreciation in the alrount of9455 has been recorded as depreciation expense

during 2013 with accumulated depreciation of 75642

The future minimum lease obligations and the net present value of these payments as of

December312013 are as follows

2014 46903

Total Minimum Lease Payments 46903

Less Amount Representing Interest 4070Present Value of Minimum Lease Payments 5 42833

A summary of longterm debt transactions for the year ended December 31 2013 is as

follows

beginning Ending Due WithinBalance Additions Reductions Balance One Year

PRIMARY GOVERNMENTCOVERNIV EN A IVI

General Obliyation Bonds S 2120000 S 180000 5 1940000 S 190000General Obligation Improvement Bonds 12955000 5920000 1465000 17410000 1455000General Obligation Revenue Bonds 4825000 140000 4685000 145000General Obligation Tax Inuement Bonds 6350000 140000 6210000 180000Capital Lease Payable 144833 102000 42833 42833Promissory Nole 427828 104069 323759 67045Equipment Certificates of Indebtedness 73500 73500 14700Plus Less Bond Premium Discount 13142 34040 298 20600Compensated Absences 158045 10666 5893 162818 25659

Governmental Activity LongTermLiabilities 26993848 S 5970726 5 2136664 5 30827310 5 2120237

BUSINESSTYPE ACTIVITIESGeneral Obligation Bonds 11700000 S S 17Q000 S 11530000 5 300000Plus Bond Premium 34979 3180 31799Compensated Absences a5653 6150 1758 50045 5245

BusinessTypeActivity LongTartuLiabilities 11780632 S 6150 174938 S 11611844 305245

as


NOTES TO THE FINANCIAL STATEMENT

DECEMBER 31 2013



LongTerm Debt ContinuedAnnual debt service requirements to maturity For longterm debt are as follows

General Obligation Bonds General Ob 6yation Bonds

Go vernmentalActivities BusinessTypeActivitiesPrincipal Interest Total Principal Interest Total

2014 190000 55453 5 245453 2014 S 300000 5 353456 6534562015 190000 52268 242268 2015 375000 344739 7197392016 190000 48506 238506 2076 630000 333473 9634732017 195000 44130 239130 2017 660000 319813 9798132018 195000 39178 2341i8 2018 680000 298946 978946

20192023 735000 114192 849192 20192023 3420000 1156543 457654320242028 200000 37095 237095 20242028 2775000 645135 3420135

2029 45000 1125 46125 20292033 269000 281463 2971463Total S 1940000 S 391947 S 2331947 Total S 11530000 5 3733568 S 15263568

General Obligation Improvement Bonds Revolving EDA BondsGo vernmenta Activities Governmental Activities

Prncipal Interest Total Principal Interest Total2014 S 1455000 S 480342 S 1935342 2014 145000 S 270038 S 4150382015 1940000 429242 2369242 2015 150000 262919 4129192016 2250000 378693 268693 2016 160000 254200 4142002017 2280000 324219 260x219 2017 165000 245059 4100592018 L190000 265623 2455623 2018 175000 275497 x50497

20192023 6260000 567265 6827265 20192023 3890000 740542 463054220242028 910000 99510 1009510 Tofal 46 f6d32T

2029 125000 26i6 127656Total S 17410000 S 2547550 19957550

Tax Increment BondsGovernmental Activities

Principal Interest Total2014 180000 S 258499 S 4384992015 215000 250709 465709

2016 230000 241979 4719792017 245000 232659 477659

2018 255000 222853 47785320192023 1480000 946296 2x26296

20242028 1380000 622508 200250820292033 1065000 385633 1450633

20342038 1160000 108900 1268900Total S 6210000 S 3270035 S 9480035

Promissory NoteGovernmental Activdies

Principal Interest Total2014 S G7045 14665 S 817102015 G9434 12277 817112016 73238 8473 817112017 77369 4341 81710

2018 36673 534 37207Total 323759 S 40290 S 364049

49





LongTerm Debt ContinuedConduit Debt Obligation

The City issued the 300000 Medical Facilities Revenue Note of 2004 to refinance the

acquisition of a building within the City used for emergency medical services The note is

secured by the property financed and is payable solely from payments received on the

underlying mortgage loan Neither the City the state nor any political subdivisionthereof is obligated in any manner for repayment of the note Accordingly the note is not

reported as a liability in the accompanying financial statements

The principal balance outstanding at December 31 2013 was 137040

NOTE 5 PENSION PLANS

A Public Employees Retirement Association

Plan Description

All fulltime and certain parttime employees of the City of North Branch are covered bydefined benefit pension plans administered by the Public Employees RetirementAssociation of Minnesota PERA PERA administers the General EmployeesRetirement Fund GERF and the Public Employees Police and Fire Fund PEPFFwhich are costsharing multipleemployer retirement plans These plans are establishedand administered in accordance with Minnesota Statutes Chapters 353 and 356

GERF members belong to either the Coordinated Plan or the Basic Plan CoordinatedPlan members are covered by Social Security and Basic Plan members are not All new

members must participate in the Coordinated Plan All police officers firefighters and

peace officers who qualify for members 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 membershighest 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 PERAsCoordinated and Basic Plan

members The retiring member receives the higher of a steprate benefit accrual

formula Method 1 or a level accrual formula Method 2 Under Method 1 the annuityaccrual rate for a Basic Plan member is 22percent of average salary for each of the first

ten years of service and 27 percent for each remaining year The annuity accrual rate

for a Coordinated Plan member is 12 percent of average salary for each of the first ten

years and 17 percent for each remaining year Under Method 2 the annuity accrual

rate is 27 percent of average salary for Basic Plan members and 17 percent for

Coordinated Plan members for each year of service For PEPFF members the annuityaccrual rate is 30percent for each year of service For all PEPFF and GERF members

50


DECEMBER 31 2013

NOTE 5 PENSION PLANS CONTINUED

A Public Employees Retirement Association Continued

Plan Description IContinuedlhired 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 aga is 55 forPEPFF 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

There are different types of annuities available to members upon retirement A normal

annuity is a lifetime annuity that ceases upon the death of the retiree and no survivor

annuity is payable There are also various types of joint and survivor annuity optionsavailable which will reduce the monthly normal annuity amount because the annuity is

payable over joint lives Members may also leave their contributions in the fund upontemination of public service in order to qualify for a deferred annuity at retirement ageRefunds of contributions are available at any time to members who leave public servicebut 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 web at mnperaorg by writing to PERA at 60 Empire Drive 200 St PaulMinnesota 551032088 or by calling 651 2967460 or18006529026

Funding PolicvMinnesota Statutes Chapter 353 sets the rates for employer and employee contributions

These statutes are established and amended by the state legislature The City makesannual contributions to the pension plans equal to the amount required by state statutes

GERF Basic Plan members and Coordinated Plan members are required to contribute910 and 625 respectively of their annual covered salary In 2013 PEPFF

members are required to contribute 96of their annual covered salary in 2013 The

City of North Branch is required to contribute the following percentages of annualcovered payroll 1178 for Basic Plan GERF members 725 for Coordinated PlanGERF members and 1440 for PEPFF members The Citys contributions to the

General Employees Retirement Fund for the years ending December 31 2013 2012and 2011 were73028 76638 and 76761 respectively The Citys contributions to

the Public Employees Police and Fire Fund for the years ending December 31 20132012 and 2011 were 88535 88556 and 93960 respectively The Cityscontributions were equal to the contractually required contributions for each year as set

by state statute

51


DECEMBER 31 2013


A Public Employees Retirement Association Continued

Defined Contribution Plan

The elected officials of the City of North Branch are covered by the Public EmployeesDefined Contribution Plan PEDCP amultipleemployer deferred compensation planadministered by the Public Employees Retirement Association of Minnesota PERAThe PEDCP is a tax qualified plan under Section 401a of the internal Revenue Codeand all contributions by or on behalf of employees are tax deferred until time of

withdrawal

Plan benefits depend solely on amounts contributed to the plan plus investment

earnings less administrative expenses Minnesota Statutes Chapter 353D03 specifiesthe employee and employer contribution rates for those qualified personnel who elect to

participate An eligible official who decides to participate contributes 500 of salarywhich is matched by the elected officialsemployer For salaried employees employercontributions must be a fixed percentage of salary Employer and employeecontributions are combined and used to purchase shares in one or more of the seven

accounts of the Minnesota Supplemental Investment Fund For administering the planPERA receives 200 of employer contributions and 004 of the assets in each

members account annually Total contributions made by the Cily of North Branch during2013 were 300

B Retirement North Branch FiremensRelief Association

Plan DescriptionAll members of the North Branch Fire Department are covered by a defined benefit planadministered by the North Branch Firemens Relief Association the Association The

plan is a single employer retirement plan and is established and administered inaccordance with Minnesota Statutes Chapter 69 The Association is comprised ofvolunteers and therefore there is no covered payroll

The Association provides retirement benefits as well as disability benefits to membersand benefits to survivors upon death of eligible members Benefits are established in

accordance with state statute and vest after ten years of credited service The definedretirement benefits are based on a membersyears of service Benefit provisions can beamended by the Association within the parameters provided by state statutes The

actuarial cost is determined using the Entry Age Normal Cost Method expressed as a

level percentage of earnings The actuarial value of assets is market value The

unfunded accrued liability is amortized using a20year rolling end date

The Association issues a publicly available financial report that includes financial

statements and required supplementary information That report may be obtained bywriting to North Branch Firemens Relief Association PO Box 945 North BranchMinnesota 55056

52



DECEMBER 31 2013


B Retirement North Branch Firemens Relief Association Continued

Funding PolicyMinnesota Statutes specify minimum contributions that may be required from the City on

an annual basis These minimum contributions are determined based on the amount

required to meet normal cost plus amortizing any prior years service cost over aten

year period The contribution required from the City for the year ended December 312013 was 61654 The Association also receives funding from the state two percent fire

premium tax The City receives the contributions and is required by state statute to passthis through as payment to the Association Investment earnings also add to theresources available for benefits The City received State Fire Aid in the amount of61623 and remitted Fire Aid in the amount of61623 in 2013

Annual Pension Cost and Net Pension ObligationThe Citys annual pension cost and net pension obligation for the year endedDecember 31 2013 were as follows

Annual Required Contribution 61654Interest on Net Pension ObligationAdjustment to Annual Required Contribution

Annual Pension Cost 61654Contribution Made 61654Increase Decrease in Net Pension ObligationNet Pension Obligation Beginning of Year

Net Pension Obligation End of Year

The annual required contribution for the current year was determined as part ofDecember 31 2013 actuarial valuation using the entry age actuarial cost method The

significant actuarial assumptions included a 5 investments rate of return and b ageand service retirement was assumed to occur at age 50 Net pension obligations on

annual actuarial basis are not calculated for individual volunteer fire relief associationssince state statutes permit alternate calculation of required reserves based on overall

actuarial assumptions

The Citys net pension obligation for the Association for the years ended December 312013 2012 and 2011 were as follows

Annual Percentage NetPension of APC Pension

Year Ended Cost APC Contributed Obligation1 2311201 1 92525 100 S

1231I2012 82725 100

1231I2013 61654 100

53



DECEMBER 31 2013


B Retirement North Branch FiremensRelief Association Continued

Funding Progress

As of December 31 2012 which is the most recent information available the Plan was

under funded by 287782 The Schedule of Funding Progress presented as requiredsupplementary information following the notes to the basic financial statements presentsmultiyear trend information about whether the actuarial value of plan assets is increasingor decreasing over time relative to the actuarial accrued liabilities for benefits

UnfundedActuarial Assets

Actuarial Actuarial Accrued in Excess

Valuation Value of Liability of AAL Funded

Date Assets AAL UAAL Ratio

12312012 481961 769743 S 287782 626

54



DECEMBER 31 2013

NOTE 6 RISK MANAGEMENT

The City is exposed to various risks of loss related to torts theft of damage to and

destruction of assets errors and omissions injuries to employees and natural disasters

Workers compensation coverage is provided through a pooled selfinsurance program

through the League of Minnesota Cities Insurance Trust LMCIT The City pays an annual

premium to LMCIT The City is subject to supplemental assessments if deemed necessary

by the LMCIT The LMCIT reinsures through Workers Compensation Reinsurance

Association WCRA as required by law For workers compensation the City is subject to a

deductible of 51000 per occurrence The Citys workers compensation coverage is

retrospectively rated With the type of coverage final premiums are determined after loss

experience is known The amount of premium adjustment if any is considered immaterial

and not recorded until received or paid

Property and casualty insurance coverage is provided through a pooled selfinsurance

program through the LMCIT The City pays an annual premium to the LMCIT The Cily is

subject to supplemental assessments if deemed necessary by the LMCIT The LMCIT

reinsures through commercial companies for claims in excess of various amounts The Cityretains risk for the deductible portions These deductibles are considered immaterial to thefinancial statementS

There were no significant reductions in insurance from the previous year or settlements in

excess of insurance coverage for any of the past three fiscal years

NOTE 7 SUMMARY OF OTHER ITEMS

Claims and Litigation

Existing and pending lawsuits claims and other actions in which the City is a defendant are

either covered by insurance of an immaterial amount or in the judgment of Citymanagement are remotely recoverable by plaintiffs

GrantsAmounts received or receivable from federal and state agencies are subject to agency audit

and adjustment Any disallowed claims including amounts already collected may constitutea liability of applicable funds The amount if any of funds which may be disallowed by the

agencies cannot be determined at this time although the City expects such amounts if anyto be immaterial The financial assistance received is subject to an audit pursuant to OMB

CircularA133 or audits by the grantor agency

55



DECEMBER 31 2013

NOTE 8 COMMITMENTS AND CONTINGENCIES

In 2006 the City entered into an agreement to purchase 947acres of land from ChisagoCounty HRAEDA for2200000 plus interest The City did not immediately take ownershipof the land but instead is purchasing and subsequently reselling smaller parcels of the

land over a twenty year period Under the terms of the original agreement the City must

purchase 50 of the land1100000by July 1 2016 and the remainder by July 1 2026

During 2011 the City and Chisago County HRAEDA agreed to modify the payment terms

relating to the land purchase Under the terms of the new agreement the City is anticipatedto pay the County HRAEDA a total of53293080 calculated as follows

Original Purchase Price of Land 2200000Less057Acres Previously Purchased 14943Outstanding Cost of Land not yet Purchased 2185057

Plus Anticipated Interest Cost 1108023

Total Anticipated Payments 3293080Less Principal Payments Made 95000Total Remaining Payments 3198080

Interest payments and thus total payments are approximate because the interest rate is

subject to change based on future performance of the County HRAEDAs investment

portfolio The interest rate at December 31 2013 is325

Due to the uncertainty of future land sales the City expects to levy property taxes payable in

years 20132026 totaling2813080 as well as provide an additional 460000 of fundsfrom internal transfers to fund its obligation to the County HRAEDA Future anticipatedpayments are as follows

2014 1750002015 4750002016 2250002017 2250002018 225000

20192023 1225000

2024202 648080Total 3198080

561



DECEMBER 31 2073

NOTE 8 COMMITMENTS AND CONTINGENCIES CONTINUED

Pavasyougo TIF

The Cily has 15 tax increment payasyougoagreements These agreements are not a

general obligation of the City and are payable solely from available tax increments

Accordingly these agreements are not reflected in the financial statements of the CityDetails of the payasyougoagreements are as follows

Kestrel Meadows TIF Fund 230

The agreement for the Kestrel Meadows TIF provides For the payment of the lesser of

20000 per year or 85 of tax increment received in the previous year until 240000 is

paid or the year 2024 whichever comes first

Uptown Maplewood Commons TIF Fund 277

The agreement for the Uptown Maplewood Commons TIF provides for the payment of 90of the tax increment received until the maximum of200000 or 20 years has been reached

Oakview Townhomes TIF Fund 240

The agreement for the Oakview Townhomes TIF provides for the payment of 500 of the tax

increment received each July and December until the maximum of 10000 has beenreached

Kelly Brothers TIF Fund 279The agreement for the Kelly Brothers TIF provides for the payment of 90 of the tax

increment received until the maximum of 500000 plus 6 interest or 26 years has beenreached

North Branch Senior Living TIF Ecumen Fund 281

The agreement for the North Branch Senior Living TIF provides for the payment of 90 ofthe tax increment received until the maximum of 5471014 plus 5 interest or until the year2027

St Croix Stone TIF Fund 283The agreement for the St Croix Stone TIF provides for the payment of 90 of the tax

increment received until the maximum of 252945 plus 5interest or until the year 2013

The District was closed as of December 31 2013 and fully decertified in 2014

Viking Coke TIF Fund 285

The agreement for the Viking Coke TIF provides for the payment of 90 of the tax

increment received until the maximum of 387000 plus 5interest or until the year 2013

The District was closed as of December 31 2013 and fully decertified in 2014

Swanson TIF Fund 286

The agreement for the Swanson TIF provides for the payment of 90 of the tax incrementreceived until the maximum of 52800 plus 5 interest or until the year 2016

Norlite TIF District 2007A Fund 287

The agreement for the Norlite TIF provides for the payment of 90 of the tax incrementreceived until the maximum of 55730 at 9 interest is paid or until the year 2017

57


DECEMBER 31 2013

NOTE 9 TRANSACTIONS BETWEEN THE CITY AND ITS COMPONENT UNITS

The City conducts routine transactions with its component units for goods or services

provided or received The Water and Light Commission bills collects and remits sewer and

storm sewer charges to the City Also the water portion of the City constructed street

improvement projects is contributed to the Water and Light Commission which pays an

applicable portion of construction costs relating to each project

NOTE 10 CHANGE

The City has adopted GASB Statement No 65 Items Previously Recognized as Assets

and Liabilities GASB Statement No 65 impacted financial reporting by establishingaccounting and financial reporting standards that reclassify as deferred outflows of

resources or deferred inflows of resources certain items that were previously reported as

assets and liabilities

NOTE 11 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR DISCRETE COMPONENT

UNIT

North Branch Municipal Water and Light Commission

Summary of Significant Accountino PoliciesThe following is a summary of significant accounting policies followed by North Branch

Municipal Water and Light Commission the Commission The Commissionsyear ended on

December 31 2013

Basis of AccountinoThe financial statements of the Commission have been prepared in conformity with

accounting principles generally accepted in the United States of America TheGovernmental Accounting Standards Board GASB is the accepted standardsetting bodyfor establishing govemmental accounting and financial reporting principles

Restricted Assets

Certain funds of the Commission are classified as restricted assets on the statement of net

position because the restriction is either imposed by law through constitutional provisions or

enabling legislation or imposed externally be creditors grantors contributors or laws or

regulations of other governments Therefore their use is limited by applicable laws and

regulations

Cash and Cash Eouivalents

The Commissionscash and cash equivalents are considered to be cash on hand demand

deposits and shortterm investments with original maturities of three months or less from the

date of acquisition

jai


DECEMBER 31 2013

NOTE 11 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESUNIT CONTINUED

North Branch Municipal Water and Light Commission Continued

Investments

Investments for the Commission are reported at fair value which is the amount at which an

investment could be exchanged in a current transaction between willing parties No

investments are reported at amortized cost

Accounts ReceivableCustomer accounts receivable in the Electric Utility Fund have been shown net of an

allowance for uncollectible accounts of 102194 All significant receivable balances are

expected to be collected within one year The allowance account considers water and

electric customer accounts can be placed on the tax roll for collection when delinquent

InventoriesInventories are generally used for construction and for operation and maintenance work

They are not for resale They are valued at the lower of cost or market utilizing the first

inlfirst out FIFO method and charged to construction or operation and maintenanceexpense when used

Capital Assets

Capital assets are reported at cost if purchased or at fair market value on the datereceived if donated Major additions and betterments are charged to the capital asset

accounts while maintenance and repairs which do not improve or extend the life of the

respective assets are expensed currently Capital assets are defined by the commission as

assets with and initial individual cost of more than 55000 and an estimated useful life in

excess of one year Depreciation is provided on a straightline basis over the estimateduseful lives of the property which range from 5 to 50 years

Compensated Absences

Under terms of employment employees are granted sick leave and vacations in varyingamounts Only benefits considered to be vested are disclosed in these statements Vested

vacation and sick leave pay is accrued when earned in the financial statements The liabilityis liquidated from the operating revenues of the Commission

Net Position

Net position of the Commission is classified in three components as follows

Net Investment in Caoital Assets consist of capital assets net of accumulated

depreciation and reduced by the curcent balances of any outstanding borrowings used to

finance the purchase or construction of those assets

Restricted Net Position Consists of net position restricted when there are limitations

imposed on their use through external restrictions imposed by creditors grantors laws

or regulations of other governments

Unrestricted Net Position the remaining assets that do not meet the definition of

Restricted or Invested in Capital Assets Net of Related Debt or Restricted

59



DECEMBER 31 2013


UNIT CONTINUED


Capital ContributedCash and capital assets are contributed to the Commission from customers or external

parties The value of property contributed to the commission is reported as revenue on thestatements of revenues expenses and changes in fund net position

DepositsIn accordance with Minnesota Statutes the Commission maintains deposits at the

depository banks which are authorized by the Commission Board and are members of theFederal Reserve System

Minnesota Statutes require that all of the Commissions deposits be 110 secured bycollateral valued at market or par whichever is lower less the amount of the Federal

Deposit Insurance Corporation insurance 140 in the case of mortgage notes pledge

Authorized collateral includes legal investments as well as certain first year mortgage notesand certain other state or local government obligations Minnesota Statutes require that

securities pledged as collateral be held in safekeeping by the Commission or in a financial

institution other than that furnishing fhe collateral

The Commissions deposits at December 31 2013 were entirely covered by federal

depository insurance or collateral held by the Commissions custodial bank in the

Commissions name

Investments

As of December 31 2013 the Commission had the following pooled investments that are

insured or registered or securities held by the Commission or its agent in the Commissionsname

Fair Value Creditand Carrying Quality Maturity

Type of Investment Amount Cost Raling Date

Money Market S 116621 116621 NA NIATaxable Municipal Bond 30332 30332 A2 21152023

Treasury Money Market 212302 212302 NA NA

Federal Home Loan Bank 191084 191084 AA 3272023

A reconciliation of cash and investments as shown on the Statem ent of Net Position follows

Statement of Net Position

Cash and Cash Investments 331160Restricted Assets 1870848

Total Cash S 2202008




UNIT CONTINUED


Restricted AssetsThe following represent the balances of the restricted assets

Long Term Debt AccountsRedemption Used to segregate resources accumulated for debt service payments over

the next twelve months

Reserve Used to report resources set aside to make up potential future deficiencies in

the redemption accounts

Construction Used to report proceeds of revenue bond issuances that are restricted for

use in construction

Hookup Charge AccountThe water utility collects trunk fees and connection charges which are restricted for

major improvements to the water distribution system

The following is a list of restricted assets at December 31 2013

Liabilities

Payable from Net

Restricted Restricted Restricted

Assets Assets Assets

Bond Redemption Account 639224 S 277119 362105Bond Reserve Account 1128925 1128925

Water Hookup Charge Account 102699 102G99

Total Restricted Assets 1870848 S 277119 S1593729

6



DECEMBER 31 2013


UNIT CONTINUED


Capital Assets

Capital asset activity for the year ended December 31 2013 was as follows

Beginning Transfers EndingBalance Additions Retirements Balance

WATER AND LIGHT COMMISSION

Capital Assets Not Being DepreciatedLand 98930 98930

Total Capital Assets Not Being Depreciated 98930 98930

Capital Assets Being DepreciatedBuilding and Structures 1981522 102194 2083716

Equipment and Vehicles 6499000 36688 6535688Distribution System 26590339 29217 26619556

Total Capital Assets Being Depreciated 35070861 168099 35238960

Less Accumulated Depreciation 8254892 1079185 9334077

Total Capital Assets Depreciated Net 26815969 917086 25904883

BusinessTypeActivities Capital Assets Net S 26914899 911086 26003813

Changes in LongTerm Debt

The following is a summary of longterm debt transactions of the Commission for the yearended December 3l 2013

Beginning Ending Due WithinBelarCe Additions ReductlonS Balance One Year

COMPONENT UNITWATER ANO LIGHT COMMISSION

General OtaigaUOn Bonds 18115000 895000 17220000 S 930000Bond Premium 76365 6592 69773Bond Discount 137919 8616 129303Compensated Absences 54017 3506 57517

Component Und Activity LongTermLiabilities S 18107457 S 3506 892876 77217987 S 930OOD

62


DECEMBER 31 2013

NOTE 12 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR DISCRETE COMPONENTUNIT CONTINUED


Changes in LongTerm Debt ContinuedAnnual debt service requirements to maturity including interest payments are as follows

Water and Light Commission

LongTerm Debt

Principal Interest Total

2014 S 930000 S 794456 1724456

2015 960000 758262 17182622016 995000 719221 1714221

2017 1040000 677732 1717732

2018 1040000 633570 167357020192023 5370000 2442013 7812013

20242028 4655000 1176146 5831146

20292033 1815000 371499 2186499

20342038 415000 29657 444657

Total 17220000 S 7602556 S 24822556

Bond Covenants

As of December 31 2013 the Commission was not in compliance with provisions of the2004 2007 and 2008 water revenue bonds which require a 110 debt coveragerequirement The Commission will continue to monitor rates and expenses

Pensions

The Commission contributes to the General Employment Retirement Fund GERF a cost

sharing multipleemployer defined benefit pension plan administered by PERA The

Commissionscontributions to the General Employees Retirement Fund for the years ended

December 31 2013 2012 and 2011 were approximately 3297728342 and 30760

respectively equal to the contractual required contributions for each year as set by state

statute

Claims and JudgmentsDuring 2013 the Commission entered into severance agreements with the Commissions

general manager and office manager whereby the Commission would compensate thegeneral manager and office manager in an amount equal to twelve months wages as

severance pay if employment is terminated for any reason other than improper or illegalacts within the confines of the position

From time to time the Commission is party to various pending claims and legal proceedingsAlthough the outcome of such matters cannot be forecasted with certainty it is the opinionof management and the Commissionslegal counsel that the likelihood is remote and that

any such claims or proceedings will have a material adverse effect on the Commissionsfinancial position or results of operations

83


DECEMBER 31 2073


UNIT CONTINUED


The Commission purchases power from the Southern Minnesota Municipal Power AgencySMMPA under a power sales contract which extends to April 2030 Under the terms of the

contract the Commission is obligated to buy all the electrical power and energy needs to

operate the electric utilities through the term of the contract In addition on January 1 1995the Commission entered a Capacity Purchase Agreement with SMMPA whereby SMMPA is

entitled to the exclusive us of the net electric generating capability of the Diesel Generatingfacilities and the electric energy associated therewith The agreement is cancelable by either

party upon afiveyear notice Under terms of the agreement SMMPA is responsible for allcosts associated with the operation maintenance repairs and other liabilities of operatingthe Diesel Generating Facilities A new 25 year contract with SMMPA is currently under

consideration

Other Information

Rate Stabilization Reserve

A reserve for rate stabilization was established in 1992 The concept of rate stabilization is

used by utilities to defer current revenues to future periods to reduce impacts of future rateincreases to customers The reserve was established from 1992 electric utility earnings of

15362 and prior years earnings of 284302 The reserve will be used to offset future rate

increases maintain income stability in future periods and reduce temporary cash

investments Transfers from the rate stabilization reserve to operations will be made in

future periods as needed to maintain financial stability

Accounting ChanoeGASB Statement No 65 Items Previously Reported as Assets and Liahilitieswill improvefinancial reporting by clarifying the appropriate use of the financial statement elements

deferred outflows of resources and deferred inflows of resources to ensure consistency in

financial reporting The City implemented this standard for the fiscal year end December 312013

64


SCHEDULE OF FUNDING PROGRESS

NORTH BRANCH VOLUNTEER FIRE RELIEF ASSOCIATION


UnfundedActuarial Assets

Actuarial Actuarial Accrued in ExcessValuation Value of Liability of AAL

Date Assets AAL UAAL12312010 S 475015 S 924367 44935212312011 329742 723193 39345112312012 481961 769743 287782

The North Branch Volunteer Fire Relief Association is comprised of volunteers Therefore there are no

payroll expenditures nor covered payroll calculations

65

CITY OF NORTH BRANCH MINNESOTABUDGETARY COMPARISON SCHEDULE

GENERAL FUND


VARfANCE WITH

BUDGETORIGINAL FINAL OVERBUDGET BUDGET ACTUAL UNDER

REVENUESTaxos S 2394976 S 2394976 S 22G7602 S 127374Tax Increment 98855 98855Licenses and Pennils 105370 148770 161654 12684Special Assessments 3200 3200 2773 427Intergovernmental 450780 485280 516G49 31369Charges for Services 72070 70570 99G25 29055Fines and Forfeits 30350 17350 18961 1671Interest 36220 27220 2G700 1120Refunds andIeimbursements 37350 64350 97467 33117Miscellaneous 7950 11950 704 11 246

TolalRevenues 31382G6 3223666 3290390 66724

EXPENDITURESCurrent

General GovernmentMayor and Council 21012 21012 20249 763Administration 92428 92932 91040 1892Clerks 52072 339G9 29103 4866FinancialAdmmistration 228824 214741 211769 2972City Attorney 33300 33300 35371 2071City Engineer 31G00 30300 1G888 13412Planning and Zoning 110482 96902 93816 3086Governmental Buildings 154661 166426 171962 14464Miscellaneous 27950 2x250 33046 8796

Total General Government 752329 733832 703244 30588

Public SafetyPolice Protection 1162867 1164779 1104133 60646Flre Protection 291573 292615 292866 251

Building Inspection 127394 11x156 110416 3740Other Protection 65150 65150 55212 9938

Total Pubtic Safety 1646984 1636700 7562627 74073

Highways and SUeelsStreet Maintenance 710445 684368 680910 3458

Culture and Recreation

Parks 194G11 203427 197285 6142

Total Expenditures 3304369 3258327 314x066 114261

EXCESS OF REVENUES OVERUNDER EXPENDITURES 166103 34661 14G324 180985

OTHER FINANCING SOURCESUSESTransfersln 166100 136143 136143Transfers Oul 77000 77000

Total Other FinancingSources Uses 166100 136143 59743 77000

NET CHANGE IN FUND BALANCE S 3 S 101482 205467 S 103985

Fund Balance Beginning ofYear 2242505

FUND BALANCE END OF YEAR S 2447972

See accompanying Nofes o Required Suppfemenfarynormalion


NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATIONYEAR ENDED DECEMBER 31 2013

NOTE 1 LEGAL COMPLIANCE BUDGETS

The General Fund budget is legally adopted on a basis consistent with accounting principlesgenerally accepted in the United States of America The legal level of budgetary control is at

the department level for the General Fund

Is7

COMBINING AND INDIVIDUAL NONMAJOR FUNDFINANCIAL STATEMENTS


COMBINING BALANCE SHEET

NONMAJORFUNDSDECEMBER 31 2013

ASSETS

Cash and Cash EgwvalentsReceivables

Taxes

LoansDue From Other Governments

Total Assets



Liabilities

Accounts PayableAccrued Liabilities

Due to Other Funds

Total Liabilities

Deferred Inflows of Resources

Unavailable Revenue on Property Taxes

Fund Balances DeficitsRestricted

Committed

UnassignedTotal Fund Balances Deficit

Total Liabilities Deferred Inflows of

Resources and Fund Balances

201 206 230

DEPARTMENT

EDA EQUIPMENT KESTREL

FUND DONATION IIF

S 44419 S 18736 33506

2309

S 46728 S 18736 33506

5273 5

314

5587

1 829

18736 3350639312

39312 18736 33506

46728 S 18736 33506

68j

SPECIAL REVENUE FUNDS

240 2fi0 270 276 277

TIF 99AOAKVIEW TAX REVOLVING CABLE SENIOR

LAND TRUST ABATEMENT LOAN FRANCHISE HOUSING

S S 7394 260169 S 11780

561179053

10599

S S 13005 339222 10599 11780

S S 1039 268

254128 349

254128 1 039 349 268

5611

6355 339222 1151210250

254128

254128 6355 339222 10250 11512

33927 S 11780

69


COMBINING BALANCE SHEET CONTINUEDNONMAJORFUNDS

DECEMBER 31 2013


279 281 283

KELLY ST CROIX

HOUSING ECUMEN STONE TIF

TIF TIF DISTRICT DISTRICT

ASSETS

Cash and Cash Equivalents 17740 S 5113 1206Receivables

Taxes

Loans

Due From Other Governments

Total Assets 17140 5113 1206



Liabilities

Accounts Payable S 1206

Accrued Liabilities

Due to OUier Funds

Total Liabilites 1206



Fund Balances DeficitsRestricted 17140 5113Committed

Unassigned

Total Fund Balances Deficit 17140 5113


Resources and Fund Balances S 17140 S 5113 S 1206

70

SPECIAL REVENUE FUNDS285 286 287 29o TOTAL

VIKING NONMAJOR

COCA COLA SWANSON NORLITE TIF HOUSING GOVERNMENTAL

TIF DISTRICT TIF DISTRICT DISTRICT 2007A SUPPORT FUNDS

1206 1249 S 2338 52824 457080

792079053

10599

1206 1249 S 2338 52824 554652

1206 268 268 9528

314

254477

1206 268 268 264319

7440

981 2070 52824 48745949562

254128

981 2070 52824 282893

S 1206 S 1249 S 2338 5 5 84 S 554652

71

CITY OF NORTH BRANCH MINNESOTACOMBINING STATEMENT OF REVENUES EXPENDITURES AND

CHANGES IN FUND BALANCESNONMAJOR FUNDS


SPECIAL REVENUE FUNDS201 206 230

FIRE DEPARTMENT

EDA EQUIPMENT KESTREL

FUND DONATION TIF

REVENUES

Taxes 5 73759 S

Tax Increments 25652Tax Abatement

Intergovernmental 149

Interesl 33 14 25

Contributions and Donations 30000Miscellaneous 5308

Total Revenues 79249 30014 25677

EXPENDITURES

Current

General Government

Miscellaneous

TIF and Tax Abatement PaymentsTotal Expenditures


UNDER EXPENDITURES

OTHER FINANCING SOURCES USESTransfers InTransfers Out

Total Other Financing Sources Uses

NET CHANGE IN FUND BALANCES

9883628508

19587 1506 25677

27778

15000 1945027778 15000 19450

8191 13494 6227

Fund Balances Deficit Beginning of Year 31121 32230 27279

FUND BALANCES DEFICIT END OF YEAR 39312 18736 S 33506

72


240 260 270 278 277

TIF 99A

OAKVIEW TAX REVOLVING CABLE SENIOR

LAND TRUST ABATEMENT LOAN FRANCHISE HOUSING

5 S S S

18 590

137253446

5 13148

25208

59 42027

18590 137704 13207 42027 25217

1309 6637 268

1000 117768 65272309 117768 6637 6795

16281 19936 6570 42027 18422

16143 27778 43775 1437516143 27778 43775 114375

16281 3793 21208 1748 4047

270409 2562 360430 11998 7465

S 254128 S 6355 S 339222 S 10250 S 11512

73


COMBINING STATEMENT OF REVENUES EXPENDITURES AND

CHANGES IN FUND BALANCES CONTINUEDNONMAJORFUNDS


SPECIAL REVENUE FUNDS279 281 283

KELLY ST CROIX

HOUSING ECUMEN STONE TIF

TIF TIF DISTRICT DISTRICT

REVENUES

Taxes STax Increments 67496 109316 36010Tax Abatement

IntergovernmentalInlerest 13 4Contributions and Do nations

Miscellaneous

Total Revenues 67509 109320 36010

EXPENDITURES

Current

General Government 15 15 3841Miscellaneous

TIFand Tax Abatement Payments 60746 98384 36863Total Expenditures 60761 98399 40704


UNDER EXPENDITURES 6748 10921 4694

OTHER FINANCING SOURCES USESTransfers In

TransfersOut 12120 6840Total Other Financing Sources Uses 12120 6840

NET CHANGE IN FUND BALANCES 5372 4081 4694


FUND BALANCES DEFICIT END OF YEAR 5 17140 S 5113

74


285 286 287 290 TOTAL

VIKING NONMAJOR

COCA COLA SWANSON NORLITE TIF HOUSING GOVERNMENTAL

TIF DISTRICT TIF DISTRICT DISTRICT 2007A SUPPORT FUNDS

5 S S 7375960697 4750 9074 356793

137253595

1 2 39 13293

3000047394

60697 4751 9076 39 659687

3841 268 268 11529828508

76909 4275 8167 41n63980750 4543 8435 5i15

20053 208 641 39 104642

52785 80563155481

52785 74918

20053 208 641 52824 29724

20053 773 1429 253169

S 981 S 2070 52824 S 282893

75


BALANCE SHEET

DEBT SERVICE FUND BY BOND ISSUE

DECEMBER 31 2013

DEBT SERVICE FUNDS301 306 316

2009C GO GO IMP AND

REFUNDING REFUNDING GOREFUNDING

BONDS BONDS OF 2010A BONDS OF 20108ASSETS

Cash and Cash Equivalents 215186 S 414982 S 217818Cash Held in Escrow

Receivables

Accounts

Taxes

Special Assessments 98470 40403

Accnied Interest

Total Assets 313656 455385 S 217818



Liabilities

Accounts Payable S 243 243 5 243



Unavailable Revenue on Special Assessments 97467 40403

Total Deferred Inflows of Resources 97467 40403

Fund Balances DeficitsRestricted 215946 414739 217575


Resources and Fund Balances S 313656 S 455385 S 217818

6

316 322

STREET

323 366 381

GO REFUNDING RECONSTRUCTION GO TIF INDUSTRIAL REFUNDING

BONDS OF 2013 BONDS OF 2009A BONDS OF 2009D PARK III NOTE BONDS OF 2003A

165339 S 40365 160413 S 30827

5812 354

184534352

5982045 S 40365 160413 S 30827 18453

241 243 243

18100

18 100

5981804 40122 160170 30827 353

S 5982045 40365 160413 30827 S 18453

77


BALANCE SHEET

DEBT SERVICE FUND BY BOND ISSUE CONTINUEDDECEMBER 31 2013

DEBT SERVICE FUNDS

ASSETS

Cash and Cash EquivalentsCash Held in Escrow

Receivables

Accounts

Taxes

Special Assessments

Accrued Interest

Total Assets



Liabilities

Accounts Payable

Deferred Inftows of ResourcesUnavailable Revenue on Property Taxes

Unavailable Revenue on Special Assessments

Total Deferred Inflows of Resources

Fund Balances DeficitsRestrcted


Resources and Fund Balances

382 383

GO BONDS GO BONDS

OF 20036 OF 20048

26911 S 656608

352874 6448237

615785 5 1301438

243 243

352788 644604

352788 644604

262754 656591

S 615785 1301A38

78

387 389 390 393 394

2005 TAXABLE 20068 TAX

EDA LEASE REVENUE LEASE PURCHASE GO BONDS INCREMENT GO BONDS

BONDS OF 2009 AGREEMENT OF 2005A REFUNDING BONDS OF 2006C

S 669927 12468 S 646285 S 516974 S 16050

1617

9535 29159

2456639 66520 934975478 6

S 686557 12468 3102930 612653 109547

243 S 243 243

9535 260342456639 66520 93497

9535 2456639 92554 93497

676779 12468 646048 519856 16050

686557 S 12468 S 3102930 612653 109547

p9


BALANCE SHEETDEBT SERVICE FUND BY BOND ISSUE CONTINUED

DECEMBER 31 2013

DEBT SERVICE FUNDS

397 398 TOTAL

DEBT

GO BONDS GO BONDS SERVICE

OF 2007A OF 2008A FUND

ASSETS

Cash and Cash Equivalents 271774 252309 4550236Cash Fleld in Escrow 5812354Receivables

Accounts 1617

Taxes 38694Special Assessments 864993 1429189 6065861Accrued Interest 9843

Total Assets 1136767 1681498 16478605



LiabilitiesAccounts Payable S 243 S 243 3157


Unavailable Revenue on Property Taxes 35569Unavailable Revenue on Special Assessments 864993 1429189 6064200

Total Deferred InFlows of Resources 864993 1429189 6099769

Fund Balances DeficitsRestricted 271531 252066 10375679

Total Liabilities Deferred InFlows of

Resources and Fund Balances 1136767 S 1681498 16478605

80


STATEMENT OF REVENUES EXPENDITURES ANDCHANGES IN FUND BALANCE

DEBT SERVICE FUND BY BOND ISSUEYEAR ENDED DECEMBER 31 2013

DEBT SERVICE FUNDS301 306 316

2009C GO GO IMP AND

REFUNDING REFUNDING GO REFUNDINGBONDS BONDS OF 2010A BONDS OF 20108

REVENUESTaxes 65476 y S 203406Tax Increments


Special Assessments 60142 72403Interest 156 307 160Miscellaneous

Total Revenues 125774 97512 203566

EXPENDITURES

Debt ServicePrincipal 295000 225000 160000Fiscal Agent Fees 668 668 668Interest 14030 33875 33720Total Expenditures 309698 259543 194388



OTHER FINANCING SOURCES USESBond Proceeds8ond Issuance DiscountTransfersln 102191 115526Transfers Out

Tolal Other Financing Sources Uses 102191 115526


Fund Balances Defeat Beginning of Year 297679 461244 208397

FUND BALANCES DEFICR END OF YEAR 215946 S 414739 217575

81

316 322 323 365 381

STREET

GO REFUNDING RECONSTRUCTION GO TIF INDUSTRIAL REFUNDING

BONDS OF 2013 BONDS OF 2009A BONDS OF 2009D PARK III NOTE BONDS OF 2003A

46389 174738 422962088

35310831 29 118 24

4650010831 46a18 176944 88820 353

20000 104069 20000240 243 693

96629 24180 164796 19382 305

96869 44423 165489 123451 20305

86038 1995 11455 34631 19952

592000034040

181801 29775 8924093260

6067761 29775 89240 93260

5981723 1995 41230 54609 113212

81 38127 118940 23782 113565

5981804 40122 160170 30827 S 353

82

CITY OF NORTH BRANCH MINNESOTASTATEMENT OF REVENUES EXPENDITURES AND

CHANGES IN FUND BALANCESDEBT SERVICE FUND BY BOND ISSUE CONTINUED


REVENUES

Taxes

Tax IncrementsIntergovernmental

Special Assessments

InterestMiscellaneous

Total Revenues

EXPENDITURESDebt Service

PrincipalFiscal Agent FeesInterest

Total Expenditures

DEBT SERVICE FUNDS382 383

GOBONDS GO BONDSOF 20036 OF 20048

11342658074 125553

193 484

58267 239463

90000 330000243 243

32256 129208122499 459451


UNDER EXPENDITURES

OTHER FINANCING SOURCES USESBond ProceedsBond Issuance DiswuntTransfers In

Transfers OutTotal Other Financing Sources Uses


Fund Balances Dehcrt egmning of Year

FUND BALANCES DEFICIT END OF YEAR

6423 219988

64232 219988

326986 876579

S 262754 S 856591

83

DEBT SERVICE FUNDS367 389 390 393 3

2005 TAXABLE 20066 TAXEDA LEASE REVENUE LEASE PURCHASE GO BONDS INCREMENT GO BONDS

BONDS OF 2009 AGREEMENT OF 2005A REFUNDING BONDS OF 2006C

S 397690 S S S S

296154

384930 9830 13847

15401 9 478 382 1310232

382289 10241 385408 306366 13860

140000 102000 330000 140000 100002668 243 1106 108

275738 9046 135608 100180 4 020

418406 111046 465851 241286 14128

36117 100805 80443 65080 268

77000

nooo

36117

712896

23805

36273

80443

726491

65080

454776

268

16318

676779 S 12a6s S 646048 S 519856 S 16050

84


STATEMENT OF REVENUES EXPENDITURES AND


DEBT SERVICE FUND BY BOND ISSUE CONTINUEDYEAR ENDED DECEMBER 31 2013

DEBT SERVICE FUNDS

397 398

TOTAL

GO BONDS GO BONDS DEBT SERVICE

OF 2007A OF 2008A FUND

REVENUES

Taxes S 9256 939251

Tax Increments 298242


Special Assessments 125353 137971 928456Interest 200 186 1831Miscellaneous 56732

Total Revenues 134809 138157 2419078

EXPENDITURES

Debt Service

PrincipalFiscal Agent Fees

Interest

Total Expenditures


UNDER EXPENDITURES

OTHER FINANCING SOURCES USESBond Proceeds

Bond Issuance Discount

Transfers InTransfers Out


100000 65000 2131069674 653 9118

r7 1901g

i ri

24565 13828 911458

5920000

3404010004 G536 612073

93260

10004 6536 6404773


Fund Balances Deficit Beginning of Year

FUND BALANCES DEFICIT END OF YEAR

14561 20364 5493315

286092 231702 4882364

271531 252066 10375679

85


BALANCE SHEET

CAPITAL PROJECTS FUND BY CAPITAL PROJECT

DECEMBER 31 2013

CAPITAL PROJECTS FUNDSsot aoa ate

REVOLVING PARK FLINW400THCAPITAL IMPROVEMENTS UTILITIES

ASSETS

Cash and Cash Equivalents 84919 S 95716 5Receivables

Taxes 954

Special Assessments 891Loans 51383

Due From Other GovernmentsLand Held for Resale

TotalASSets 138147 95716 S



Liabilities

Accounts Payable S 53972 SDue to Other Funds

Total Liabilities 53972

Deferred Inflows of ResourcesUnavailable Revenue on Property TaxesUnavailabte Revenue on Speaal Assessments 891Unavallable Revenue on Contract for Deed 51383

Total Deferred Inflows of Resources 52274

Fund Balances Deficits

Assigned 31901 95716Unassigned

Total Fund Balances Deficit 31901 95716


Resources and Fund 8afances Deficit 5 138147 95716 S

86

422 432 d70 475 478

EQUIPMENT LIBRARYREVOLVING COMMUNITY INDUSTRIAL

TH95 BRIDGE FUND TIF i CENTER PARK IV

5 S 2003 160249 S 428015

30140

95000

5 5 2003 S 160249 3023751

S S S S2094297

2094297

25986

25986

2003 160249

2423158

2003 160249 2423158

2003 S 160249 302875

87


BALANCE SHEET

CAPITAL PROJECTS FUND BY CAPITAL PROJECT CONTINUEDDECEMBER 31 2013

CAPITAL PROJECTS FUNDS478 480 486

SAFE ROUTES RECREATIONPALLETMAN TO SCHOOL CENTER

ASSETS

Cash and Cash Equivalents 35280Receivables

Taxes

Speclal AssessmentsLoans

Due From Other Governments 1294Land Held for Resale

Total Assets 5 1294 5 35280



Liabilities

Accounts Payable 3567Duelo Other Funds 60817 4020

Totat Liabilities 60817 7587

Deferced Inflows of Resources


Unavailable Revenue on Special Assessments

Unavaitabte Revenue on Contract for Deed

Total Deferred Inflows of Resources

Fund Balances DeficitsAssigned 35280Unassigned 60817 6293

Total Fund Balances Defct 608171 6293 35280


Resources and Fund Balances Deficit 1294 35280

88

as2 TOTAL

CAPITALHOUSING PROJECTSPROJECT FUND

S 49848

4075 35169891

51383

129495000

S 53923 183737

S S 57539

2159134

2216673

3530 29516891

51383

3530 81790

50393 375542

2490266

503932114726

5 53923 183737

89




CAPTIAL PROJECTS FUND BY CAPITAL PROJECTYEAR ENDED DECEMBER 31 2013

CAPITAL PROJECTS FUNDS

401 403 417

REVOLVING PARK FLINK400TH

CAPITAL IMPROVEMENTS UTILITIESREVENUES

Taxes 26

Tax Abatement 954

Intergovernmental 589511Special Assessments 1026Interest 2228 70

Refunds and Reimbursements 3288Miscellaneous

Tolal Revenues 597007 96

EXPENDITURES

Current

General GovernmentPublic SafetyHighways and Streets

Miscellaneous

Capital OutlayDebt Service

Interest and Fiscal Agent Fees

Total Expenditures


UNDER EXPENDITURES

OTHER FINANCING SOURCES USESEquipment Certificate ProceedsTransfers In

Transfers Out



567691

322

78

567769 322

29238 96 322

64842

64842

29238 96 64520


FUND BALANCES DEFICIT END OF YEAR 31 901 95716

90

CAPITAL PROJECTS FUNDS422 432 470 476 476

EQUIPMENT LIBRARY

REVOLVING COMMUNITY INDUSTRIAL

TH95 BRIDGE FUND TIF 1 CENTER PARK IV

S S S S 657643

30377

2 118

11275

30377 2 118 668918

30137

525

456032

4661101000

13076

30137 101 525 4661 469108

240 101 523 4661 118 199810

73 500

133088 30000 93260

273 170133088 103 500 273 170 93260

133328 1977 4661 273052 293070

133328 26 4661 433 301 2716228

5 2003 5 160 249 2423158

91




CAPITAL PROJECTS FUND BY CAPITAL PROJECT CONTINUEDYEAR ENDED DECEMBER 31 2013

CAPITAL PROJECTS FUNDS478 480 486

SAFE ROUTES RECREATION

PALLETMAN TO SCHOOL CENTER

REVENUES

Taxes S

Tax Abatement 7179

Intergovernmental 23 185803Special Assessments

Interest 19 26

Refunds and Reimbursements

Miscellaneous

Total Revenues 7202 185822 26

EXPENDITURES

Current

General Government 321 1301Public SafetyHighways and Streets

Miscellaneous

CapitalOutlay 189250 1075Debt Service

Interest and Fiscal Agent Fees

Total Expenditures 321 190551 1075



OTHER FINANCING SOURCES USESEgwpment Certificate Proceeds

Transfers In

Transfers Out




FUND BALANCES DEFICIT END OF YEAR S 60817 6293 S 3528D

92

as2 TOTAL

CAPITALHOUSING INTERNAL PROJECTS

PROJECT ELIMINATIONS FUND

S 83110 S S 740779

8133805714

102638 2501

14563

1182 1182

64330 1573898

91622 549276525

5978284661

291647

13154

91622 1457091

7292 116807

73500197930 123260197930 75240

121520

1292 238327

57685 2353053

50393 S S 2114726

93

OTHER REPORTS SECTION

CtiftonLarsorWlen LLP

CLAconnedwm

CliftonLarsonAllen

INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Honorable Mayor andMembers of the City Council



We have audited in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States the fnancial statements of the governmentalactivities the businesstype activities the discretely presented component unit each major fund and the

aggregate remaining fund information of the City of North Branch the City as of and for the year endedDecember 31 2013 and the related notes to the financial statements which collectively comprise the Citysbasic financial statements and have issued our report thereon dated April 22 2014 Our report includes a

reference to other auditors who audited the financial statements of North Branch Municipal Water and Lightas described in our report on the Citys financial statements This report does not include the results of the

other auditors testing of intemal control over financial reporting or compliance and other matters that are

reported on separately by those auditors

Internal Control Over Financial Reoortino

In planning and performing our audit we considered the Citys intemal control over financial reportinginternal control to determine the audit procedures that are appropriate in the circumstances for the purposeof expressing our opinions on the financial statements but not for the purpose of expressing an opinion on

the effectiveness of the Citys intemal control Accordingly we do not express an opinion on theeffectiveness of the Citys intemal control

Our consideration of internal conVOl was for the limited purpose described in the preceding paragraph andwas 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 described in the accompanying schedule of findings and recommendations we

identified certain deficiencies in internal control that we consider to be material weaknesses and significantdeficiencies

lfl70lnrvan1m1Mrwarrvn

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Honorableilayor and

Members of the City CouncilCity of North Branch

Internal Control Over Financial Reporting ContinuedA defrciency in internal control exists when the design or operation ofa control does not allow managementor employees in the normal course of performing their assigned functions to prevent or detect and correctmisstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies ininternal control such that there is a reasonable possibility that a material misstatement of the Ciry s financialstatements will not be prevented or detected and corrected on a timely basis We consider the deficiencies

2013062and 2013003described in the accompanying Schedule of Findings and Recommendations to bematerial weaknesses

A significant defrciency is a deficiency or a combination of deficiencies in internal control that is less severe

than a material vaeakness yet important enougim to merit attention by those charged with governance We

consider the deficiency 2013001 described in the accompany Schedule of Findings and Recommendations

to be a significant deficiency

Compliance and Other MattersAs part of obtaining reasonable assurance about whether the Citys financial statements are 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 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

The CitvsResponses to Findinas

The Citys responses to the findings identified in our audit are described in the accompanying Schedule of

Findings and Recommendations We did not audit the Citys responses and accordingly we express no

opinion on them

Purpose of this ReportThis report is intended solely for the information and use of management Ciry Council and state and federal

grantor agencies and is not intended to be and should not be used by anyone other than these specifiedparties

LLB

CliftonlarsonAllen LLP

Brainerd Minnesota

April 22 2014

95


SCHEDULE OF FINDINGS AND RECOMMENDATIONSYEAR ENDED DECEMBER 31 2013

SIGNIFICANT DEFICIENCY

2013001 tACK OF SEGREGATION OF DUTIES

Criteria City management should constantly be aware of the need to have adequatesegregation of duties regarding the processing of transactions for the City In additionCity management should be aware that the concentration of duties and responsibilitiesin one or a very few individuals is not desirable from an internal control perspective

Condition Adequate segregation of the accounting functions necessary to ensure

adequate internal accounting control is not in place The City has reassigned a

number of the previously identified responsibilities however due to the number of

employees available to assign responsibilities some weaknesses still exist

Cause Size and budget constraints limit the number ofpersonnel within the City

Effect The design of the internal controls over financial reporting could affect the

ability of the City to record process summarize and report financial data consistentlywith the assertions of management in the financial statements In addition this lack of

segregation of duties may result in the Citys inability to preventdetectmisappropriation of assets

Recommendation We recommend Cily management be aware of the lack of

segregation of duties within the accounting functions and provide oversight to ensure

the internal control policies and procedures are being implemented by City staff

Management Response The Cily will continue to explore the possible further

segregation of duties within the Ciry office to minimize the potential risk until it is no

longer cost effective for the City

96


SCHEDULE OF FINDINGS AND RECOMMENDATIONS CONTINUEDYEAR ENDED DECEMBER 31 2013

2013002 AUDIT ADJUSTMENTSCriteria The City of North Branchsmanagement is responsible for establishing and

maintaining internal controls For the proper recording of all the Citys accountingtransactions including account coding reporting of accruals and net position and

cash flows

Condition As part of the audit we proposed material adjustments for the reporting of

accruals reclassifying transactions to proper accounts and note disclosure

preparation

Cause The City had some complex transactions which requires unique and

complicated accounting transactions in order for proper financial statement

presentation

Effect The design of the internal controls over recording transactions and yearendaccruals limits the ability of the City to provide accurate accrual basis financialinformation

Recommendation We recommend City management and financial personnelcontinue to increase their awareness and knowledge of all procedure and processesinvolved in recording transactions and reclassifications and develop internal control

policies to ensure proper recording of these items

Management Response The City continues to work at minimizing and eliminatingthese adjustments throughout the year

97


SCHEDULE OF FINDINGS AND RECOMMENDATIONS CONTINUEDYEAR ENDED DECEMBER 31 2013

MATERIAL WEAKNESSES CONTINUED

2013003 FINANCIAL STATEMENT PREPARATION

Criteria City management is responsible for establishing and maintaining internal

controls including monitoring and for the fair presentation in the financial statements

in accordance with Governmental Accounting Standards Board Statement No 34

Condition As part of the audit management requested us to prepare a draft of the

Citys financial statements including the related notes to the financial statements

Cause The City has a limited number of staff and resources available to allow for

adequate review and preparation of the financial statements

Effect The design of the controls over the financial reporting process would affect the

ability of the City to report their financial data consistently with the assertions of

management in the financial statements

Recommendation We recognize the fact that the City has made acostbenefit

decision to engage the audit firm to draft its financial statements We recommend that

the City be aware of the requirements for fair presentation of the financial statements

in accordance with the Governmental Accounting Standards Board Statement No 34

Should the City elect based upon costbenefit analysis and increased financial

staffing to establish the full oversight of the financial statement preparation at an

appropriate level we suggest management establish effective review policies and

procedures including but not limited to the following functions reconciling generalledger amounts to the draft financial statements review of all supportingdocumentation and explanations for journal entries proposed by us and approve theentries review the adequacy of financial statement disclosures by completing a

disclosure checklist review and approval of schedules and calculations supporting theamounts included in the notes to the financial statements apply analytical proceduresto the draft financial statements and perform other procedures considered necessary

by management

Management Response The City will continue to utilize the expertise of the audit

firm to prepare the financial statements and related footnote disclosures and will

review and approve these prior to the issuance of the annual financial statements

MINNESOTA LEGAL COMPLIANCE

NONE NOTED

9

CliftonLarsonAllen LLP

CLAtonnedcom

CliftonLarsonAllen

INDEPENDENT AUDITORS REPORT ON MINNESOTA LEGAL COMPLIANCE

Honorable Mayor and

Members of the City Council



We have audited in accordance with auditing standards generally accepted in the United States of

America the accompanying financial statements of the governmental activities the discretelypresented component unit the businesstypeactivities each major fund and the aggregate remainingfund information of the City of North Branch The City Minnesota as of December 31 2013 and the

related notes to the financial statements which collectively comprise the Citys basic financialstatements as listed in the table of contents and have issued our report thereon dated April 22 2014Our report includes a reference to other auditors who audited the financial statements of North Branch

Municipal Water and Light Commission as described in our report on the Citys financial statementsThis report does not include the results of the other auditors testing of internal control over financial

reporting or compliance and other matters that are reported on separately by those auditors

The Minnesota Legal Compliance Audif Guide for Political Subdivisions contains seven categories of

compliance to be tested contracting and bidding deposits and investments conflicts of interest publicindebtedness claims and disbursements miscellaneous provisions and tax increment financing

In connection with our audit nothing came to our attention that caused us to believe that the City ofNorth Branch Minnesota failed to comply with the provisions of the Minnesota Legal Compliance AuditGuide for Political Subdivisions However our audit was not directed prirnarily toward obtainingknowledge of such noncompliance Accordingly had we performed additional procedures othermatters may have come to our attention regarding the Citys noncompliance with the abovereferenced

provisions

The purpose of this report is solely to describe the scope of our testing of compliance and the results of

that testing and not to provide an opinion on compliance Accordingly this communication is notsuitable for any other purpose

This report is intended solely for the information and use of management City Council and the

Minnesota Office of the State Auditor is not intended to be and should not be used by anyone other

than those specified parties

LaxlaLLBCliftonLarsonAllen LLP

Brainerd Minnesota

April 22 2014

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Coleslaw Beans Coffee

Lemonade Root Beer Floats

Sat May 3 2014at the

North Branch Fire Hall

300pm until goneAdults X1000 Smelt Fish12 under X500 All you ca5 under FREE Side Dishers 1

NORTH BRANCH CITY COUNCIL

AGENDA

MEETING REGULAR SESSIONPLACE CITY HALL 6408 ELM STREET

DATE MAY 12 2014

TIME 700PM

700 pm 1 CALL TO ORDER

2 PLEDGE OF ALLEGIANCE

3 ROLL CALL

4 CONSENT AGENDA ACTION

All matters listed underthe Consent Agenda are considered routine andornon

controversial and will be approved by one motion There will be no separate discussion

ofthese items unless a Councilmember orcitizen so requests in which case the item will

be removed from the Consent Agenda and considered in its normal sequence on the

Agenda4A Claims

4B Resolution Liquor Store Cashier Hire Eligibility List

4C

5 PUBLIC HEARINGS

5A Annual SWPPP Public HearingCall to Order

Plan Review

Public Comment

Adjourn

6 COMMITTEESCOMMISSIONS6A PLANNING COMMISSION

6B ECONOMIC DEVELOPMENT AUTHORITY NONE


6D WATER AND LIGHT COMMISSION NONE

STAFF REPORTS7A ENGINEERINGPUBLICWORKS

7B ADMINISTRATIONB1 2013 Liquor Year End Report INFO

7C BUILDING

7D FINANCE

7E LEGAL

8 NOTICES AND COMMUNICATION NONE

9 PUBLIC COMMENT

Public Comment provides an opportunity for the public to address the Council on items that

are not on the Agenda Please raise yourhand to be recognized

Pegttyoeand address for the record This section is for the express purpose d s g ms

ofCity services and operations It shall not be used to clarify individuals views for politicalpurposes

Statements made during public comment are the opinions ofthe individual making the

comment The comments made by individuals during public comment do not represent the

official position of the City Council individual Councilmembers or City Staff The City Councilis not responsible for false inaccurate ormisleading comments received during publiccomment When inaccurate information is presented the City will aftempt to clarifyinformation and provide accurate information

10 UNFINISHED BUSINESS NONE

11 NEW BUSINESS NONE

12 MAYORCOUNCIL

12A Upcoming Agendas

13 ADJOURN

DISCUSSION

Since we do not have time to discuss every point presented it may seem that decisions are preconceivedHowever background information is provided to the City Council on each Agenda item in advance from Staffand appointed Commissions and decisions are based on this information andpast experiences In addition

some items may also have been discussed preliminarily at Council Work Sessions Ifyou are aware ofinformation that has not been discussed please raise your hand to be recognized Comments that are pertinent

are appreciated Items requiring excessive time maybe continued to another meeting

Upcoming Meeting Reminders

Work Session May 15 2014 630 pm

Regular Session May 27 2014 7 pmWorkSession June 5 2014 Work Session630 pm

Regular Session June 9 2014 7 pm


Agenda

City Council Work Session


May 1 2014

630 AM 631 AM 001 Pledge of Allegiance

631 AM 716AM 045 Transportation Planning

716 AM 801 AM 045 Park Discussions Sondrol

801 AM 831 AM 030

1 of 1 4232014426 PM


Agenda

City Council Work Session


May 15 2014

630 AM 631 AM 001 Pledge of Allegiance

631 AM 716AM 045 Staffing Plan Konrad

716 AM 801 AM 045 Capital Improvement Plan HiII

801 AM 831 AM 030

Total 201

1 of 1 4232014426 PM

City ofNorth Branch

ftv Memo

Prepared By Bridgitte Konrad

Date April 28 2014

Subject Elimination of the Primary

The Mayor has requested that I add discussion about elimination of the City PrimaryElection to the agenda

The City Primary was first established in 2010 The staff report from that meeting is

attached for your information

Minnesota Statutes 205065 sets the regulations for Primaries To establish a Primaryan ordinance needs to be adopted by April 15 and stays in effect until revoked There

are no specific dates specified in the Statute for elimination however there are some

practical considerations that would support using that date for elimination as well The

wheels are in motion for the City Primary For example the notice of filing has to be

published by May 6 this year Because our paper publishes on Thursday that notice will

be in the Star this Thursday May 1 to meet that deadline and was posted at City Hall

midweek last week Other newspapers have inquired over the last few months if we

have a primary and they have been informed that we do Filing information has been

on the Cityswebsite for several months Voters are expecting a primary and

elimination of the Primary now could lead to voter confusion and frustration I havetalked to the Secretary of StatesOffice They confirmed that there is no specific datebut felt there would need to be specific justification to eliminate the primary after the

April 15 date

Attachments1 2010 Staff Report Establishing Primary2 Minnesota Statutes 205065

9

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United t 994


Prepared By Bridgitte Konrad

Date January 15 2010

Subject Primary Elections

Background Information

In September at a work session we discussed establishing a City Primary Election Over the

years we have had increased interest in the Mayor and Council positions A PrimaryElection would narrow the number of candidates for the General Election ballot For

example in the case of Mayor if more than two candidates file for the ofFice those names

would then be placed on the Primary Election ballot The top two vote getters would then

be placed on the General Election ballot If there are not twice the number of candidates

that file for office there would be no Primary Election for that position and those that file for

office would then be placed on the General Election ballot The filing period for candidates

would move to July if a Primary Election is established for the City

The City is required to adopt an ordinance establishing a Primary Election and that

ordinances has be to be forwarded to the Secretary of States OfFice and the County Auditor

within 30 days of being adopted



FinancialBudgetImpacts IfAnyFunding Sources


DeadlineThe ordinance would need to be adopted at least three months before the General Election

November

Requested ActionStaffRecommendation

I recommend Council adopt the attached Ordinance establishing a City Primary Election

lIQNESOTA STATUTES 2013 205065

205065 PRIlVIARTFS

Subdivision 1 Establishing primary A municipal primary for the purpose ofnominatingelective officers may be held in any city on the second Tuesday in August of any year in whicha municipal general election is to be held for the purpose of electing officers The date of a

municipal primary held in anoddnumbered year may be postponed for inclement weather as

provided in section 205105

Subd 2 Resolution or ordinance The governing body ofa city may by ordinance or

resolution adopted by April 15 in the year when a municipal general election is held elect to

choose nominees for municipal offices by a primary as provided in this section The resolutionor ordinance when adopted is effective for all ensuing municipal elections until it is revokedThe municipal clerk shall notify the secretary ofstate and the county auditor within 30 days afterthe adoption of the resolution or ordinance

Subd 3 Repealed 1994 c 646 s 28Subd 4 Candidates filing The clerk shall place uponthe primary ballot without partisan

designation the names ofindividuals whose candidacies have been filed and for whom the properfiling fee has been paid When not more than twice the number ofindividuals to be elected to a

municipal office file for nomination for the office their names shall not be placed uponthe primaryballot and shall be placed on the municipal general election ballot as the nominees for that office

Subd 5 Results a The municipal primary shall be conducted and the returns made in themanner provided for the state primary so far as practicable If the primary is conducted

1 only within that municipality a canvass may be conducted on either the second or third

day after the primary or

2 in conjunction with the state primary the canvass must be conducted on the third dayafter the primary except as otherwise provided in paragraph b

The governing body ofthe municipality shall canvass the returns and the two candidates foreach office who receive the highest number ofvotes or a number of candidates equal to twicethe number of individuals to be elected to the office who receive the highest number of votesshall be the nominees for the office named Their names shall be certified to the municipal clerkwho shall place them on the municipal general election ballot without partisan designation andwithout payment of an additional fee

b Following amunicipal primary as described in paragraph a clause 2 a canvass

may be conducted on the second day after the primary if the county auditor of each county inwhich the municipality is located agrees to administratively review the municipalitysprimaryvoting statistics for accuracy and completeness within a time that permits the canvass to beconducted on that day

Subd 6 Recount A losing candidate at the municipal primary may request a recount ofthevotes for that nomination subject to the requirements of section 204C36

Subd 7 Repealed 2011 c 65 s 9

History 1983 c 62 s 2 1987 c 62 s 6 7 1989 c 209 art 1 s 19 1994 c 646 s 4 S 2010 c

184s2627 2010c194s21 2010c201 s57 2011 c65s5

Copyright 2013 by the Office of the Revisor of Statutes State of Minnesota All Rights Reserved

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