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2012-04-30 CC Agenda PacketPLEASE TURN OFF ALL CELL PHONES & PAGERS IN COUNCH, CHAMBERS. Page 1. Call meeting to order 2. Supervisors' Annual Reports to the City Council A. Liquor Store — Manager John Colotti 1 -20 B. Fire & Rescue /Emergency Response — Fire Chief Greg Pederson 21 -72 C. Finance & Administration/Docks Administration — Finance 73 -98 Director /Clerk/Treasurer Catherine Pausche D. Community Development /Planning/Zoning/Building Inspections — 99 -107 Community Development Director Sarah Smith E. Public Works Divisions 108 -120 1. Public Works a. Public Works Director Carlton Moore b. Public Works Superintendent Ray Hanson 2. Parks and Open Spaces a. Public Works Director Carlton Moore 3. Adjourn -1- Harbor Wine & Spirits 2012 Annual Report Harbor Wine & Spirits..... A Proud Municipally Owned Store ................. After the repeal of Prohibition, the Federal Government made the decision to allow the States to decide how they wanted to manage the sale of wine & spirits. The state of Minnesota left it up to the individual cities to manage the sales of wine & spirits. The City of Mound, like many other municipalities, decided on direct involvement in the wine & spirits trade. Mound Liquor, as it was known, first opened it's doors on March 13`h 1937 on Park Avenue. To this day, our municipally owned wine & spirits store provides our community with a great service. In addition to giving our customers a pleasant place to shop for their beverage needs, it also contributes greatly to the effective control of alcohol in our community. Restricting under age access is one of the most important roles we provide to our public, and since 2010 again contributed to the financial well being of the City of Mound. The City of Mound, like many other municipalities in the State of Minnesota, operates liquor stores for two critical reasons: To control the sale of alcohol in the community and to generate revenue for the city. In one of the very first phases of the redevelopment of Mound in 2003, the Mound liquor store changed its' location and its' name to Harbor Wine & Spirits. The marketing concept of the new store was to create an upscale atmosphere with a larger selection and more professional service. By building on all of the positives that had been established at the old Mound Liquor, Harbor Wine & Spirits has established itself, (and continues to establish itself) as THE premier wine & spirits destination of Westonka. Harbor Wine and Spirits is a member of the Minnesota Municipal Beverage Association. The MMBA is a statewide association of Municipal Liquor Store facilities. Its purpose is to assist members in operating their stores more efficiently and economically through education and consultation. The MMBA is also one of the strongest voices on legislative issues concerning the wine & spirits trade within Minnesota. The staff of Harbor Wine & Spirits strives to provide a pleasurable shopping experience for all of its' customers. It is accomplished by providing an unparalleled level of customer service, a professional attitude, along with a clean and healthy shopping -2- environment. They also possess the most complete selection of Wine, Spirits and Beer in the Westonka region. Harbor Wine & Spirits continues to discover new opportunities to expand its existing customer base with weekend wine & spirits samplings, aggressive wine sale pricing and a Wine & Beer of the Month program. They are also continuing the standard annual storewide wine sales each year. Harbor Wine & Spirits is managed by John Colotti, who has over twenty five years experience in the wine & spirits trade. John has been a retail manager for almost twenty years, as well as a wine & spirit sales representative. Ron Gust is the Assistant Manager who has worked at Harbor Wine & Spirits for eight + years. Ron brings an extensive knowledge of specialty liqueurs and experience in large -scale event planning, such as the Spirit of the Lake Festival's Beer Garden & wine tastings. Harbor Wine & Spirits is also staffed by seven knowledgeable part-time employees. Ongoing activities and promotions include two annual wine sales, the annual "Repeal of Prohibition Sale" in December, monthly beer & wine of the month promotions, weekly senior citizen discount days, Spirit of the Lake Festival Beer Garden sponsorship and wine & spirits tastings, membership in The Westonka Community & Commerce networking organization, and membership in the Minnesota Municipal Beverage Association. Past promotions included The Annual Gala Wine Tasting Event at Burl Oaks Country Club, The Gillespie Center Holiday Dinner, Chamber of Commerce Taste of the Lake event at Bayside Marina, and membership in the Lake Minnetonka Area Chamber of Commerce. -3- Ems Ea m -i O O m O W m m m W m m D D M, z m �' m m m O N C C ° O m m Z Q D Z o O m m m m �^ ?� O N ?� yy O x Z m mm O in X m c O m M p N -ci n Z N 1D W V m p N W 0 0 0 0 0 0 0 a o 0 m t°u w w o rn o 0 1°v N o rn m m m r�'i o rn °a cNn I- OR O ti i i 1 i i I r c W ID i 3 1 y � C w CD a, d N � � d CD en 7 � 1 ^� A d r O V (p T m D N A N N m to OJ W V N V W A N W p A rn A (n � N W N A A W W O l0 V W O {n A O N A O A 0 0 Ol W O A 0 0 0 Qo W V I- OR O ti i i 1 i i I r c W ID i 3 1 y � C w CD a, d N � � d CD en 7 � 1 ^� A d r O V (p T m D Previous Year Class Chart Harbor Wine & Spirits Sorts: Dept 3/19/2013 10:43:03 AM Page 1 Costs Sales $- 150000 $0 $150000 $300000 $450000 $600000 $"]50000 $900000 BAR SUPPLY 6.5% TAX - 10, 010 -BAR BAR SUPPLY FOOD NTAX - 13, BEER -20, 020 -BEER BEER -20, 021 - IMPBEER BEER -20, 080 -MALT BEER -20, BEER - DISCONTINUED BOTTLE /KEG DEPOSIT - 06, BOTTLE /KEG REFUND - 07, CIGARETTES AND CIGAR - 12, CIGARETTES AND CIGAR - 12, Continued... -5- Previous Year Class Chart Harbor Wine & Spirits Page 2 Costs E Sales $- 150000 $0 $150000 $300000 $450000 $600000 $750000 $900000 CIGARETTES AND CIGAR - 12, CIGARETTES AND CIGAR - 12, JUICES NON/TAX - 15, 015- JUICES LIQUOR - 30, 030 -VODKA LIQUOR -30, 031 -GIN LIQUOR -30, 032 -RUM LIQUOR -30, 033 - TEQUILA LIQUOR -30, 034 - STRAIGHTS LIQUOR -30, 035 - BLENDS LIQUOR -30, 036 - CANADIANS Continued... Previous Year Class Chart Harbor Wine & Spirits Page 3 Costs Sales $- 150000 $0 $150000 $300000 $950000 $600000 $750000 $900000 LIQUOR - 30, 037 - BRANDY /COGNAC LIQUOR -30, 038 -IRISH LIQUOR -30, 039 - SCOTCH LIQUOR -30, 040- CORDIALS LIQUOR -30, 041- SCHNAPPS LIQUOR -30, 042 - COCKTAILS LIQUOR -30, 043 - FLAVORED BRANDY LIQUOR - 30, 044 -CREAM LIQUEURS LIQUOR -30, 045 - DECANTERS LIQUOR - 30, LIQUOR - DISCONTINUED Continued... Previous Year Class Chart Harbor Wine & Spirits Page 4 Costs E Sales $- 150000 $0 $150000 $300000 $450000 $600000 $750000 8900000 N/A BEER NO TAX - 18, 018 -N /A BEER OPEN 6.5% TAX - 05, 005 - OPEN -6.5% OPEN -BEER - 02, 002 - OPEN -BEER OPEN - LIQUOR -01, 001- OPEN- LIQUOR -01, UNDEFINED -202 OPEN- NON/TAX - 04, OPEN- WINE -03, 003 - OPEN -WINE POP & MIXES 6.5%-16, 016 -MIXES POP & MIXES 6.5% - 16, 017 -POP PROMOTIONAL EVENT - 08, Continued... In Previous Year Class Chart Harbor Wine & Spirits P89e 5 Costs Sales $- 150000 $0 PROMOTIONAL EVENT - 08 WINE -60, 019 -N /A WINE WINE -60, 060 - DOMESTIC MISC WINE -60, 061- DOMESTIC CHARDS WINE -60, 070- CHILIAN WINES WINE -60, 071 - ITALIAN WINES WINE -60, 062 - DOMESTIC WINE - 60, 063 - DOMESTIC MERLOTS WINE - 60, 064 - DOMESTIC MISC REDS WINE - 60, 065- DOMESTIC MISC Continued... $150000 $300000 $450000 seonnnn avcnnnn 000 ME Previous Year Class Chart Harbor Wine & Spirits Page 6 Costs MSales $- 150000 $0 $150000 $300000 $450000 $600000 $750000 $900000 WINE -60, 066- IMPORTS MISC WINE -60, 067 - AUSTRALIAN WINE WINE -60, 068 - FRENCH WINES WINE - 60, 069 - GERMAN WINES WINE -60, 072- CHAMPAGNES WINE -60, 073 - VERMOUTHS WINE -60, 074 - SHERRY /PORTS WINE -60, 075- DESSERT WINES WINE - 60, 076 SPANISH WINE WINE - 60, WINE - DISCONTINUED -10- Harbor Wine & Spirits Sales & Marketing Program March 2013 Report Prepared by: John Colotti, Manager Overview Harbor Wine & Spirits is a successful wine shop located on the shores of Lake Minnetonka. There is intense competition in this market with two competitors that we would consider local equivalents in addition to the two major regional competitors located in Minneapolis. Our success is based on several factors including product selection, pricing, knowledgeable sales staff, store design, in -store displays, tastings, in -store promotions, community event leadership and media marketing. 10 Year Anniversary Sale February 12th It's amazing to think that we have been at the "new store" for ten year. The change to the new location allowed us to design an updated layout that put our products front and center and better reflected Mound's status as a commercial destination for area residents. To celebrate we had a one day sale featuring 15 tastings, prize drawings and a 15% discount for wine, spirits and beer same day purchases. This sale signified our standing in the community and was profitable for us as well, our Net Sales were up by $6724.93, and we had 227 more customers over the same day last year. Spring - Customer Appreciation Wine Sale Annual Sale in February Held for the past nine years the Customer Appreciation Wine Sale has helped drive sales at a time of year that is post - holiday and pre- summer peak sales times. The sale is primarily promoted through the Laker /Pioneer and Lakeshore Weekly News as well as on bag stuffers that go out the weeks leading up to the sale. Setting Harbor Wine & Spirits Customer Appreciation Wine Sale apart from our metro competitors is our universal 15% off by the bottle and 20% off by the case (including mix & match cases) wine pricing. Most retailers present a limited listing of wines for their sale; subsequently new customers are routinely impressed when they discover all their choice wines are on sale at our store. During the three week long sale we have in -store wine samplings hosted by our wholesaler's wine representatives. We conduct the tastings on Thursday, Friday and Saturdays during peak customer traffic time. Fall Wine Sale Annual Sale in September /October 11- This is the largest wine sale of the year, featuring 15% off by the bottle and 20% off by the case (including mix & match cases) wine. Our customers tell us they mark their calendars for this sale and we make it easy for them to remember it by advertising in the local newspaper, social media and bag stuffers. Sales events generate volume sales resulting in greater profit, by example the 2012 sale was held 10/04/12 to 10/21/12, and the total Net Sales were $153,532.37. The same fall season the month before September 09/04/12 to 09/21/12, Net Sales were $136.736.79. Repeal of Prohibition Sale December 5, 2012 Last year the industry was all a buzz over the 79th anniversary of the repeal of prohibition and we jumped onboard with a retro sales event that was a huge hit with our customers. Our Anheuser -Busch distributor, Thorpe Distributing, worked with us to sell single bottles of Budweiser for 10 cents per bottle to commemorate the price back in 1933! This was also a great time for our customers to try something new as we had beer and spirits vendors offering samples from Noon to 8 p.m. For those who made a purchase that day we had vendor giveaways such as bottle openers, t -shirts and baseball caps. While the wine sales are a great time to buy wine, this was an opportunity for our customers to get 20% off beer & spirits as well as wine. Given the December date of this event we questioned if it would cut into our holiday revenues, however, it proved to be very profitable with Net Sales for the day being $19024.308 vs. the 2011 same day Net Sales of $5124.96. That combined with the fact that our overall December sales for 2012 were up by $21831.93 over 2011. We are looking forward to the 2013 sale which will mark the 80th anniversary. in fact we already have commitments from the majority of our vendors to participate in the 2013 event. We promoted this sale with heavy print advertising in the Laker /Pioneer and Lakeshore Weekly News, social media and bag stuffers. Wine & Beer of the Month Each month we feature a wine & a beer of the month promotion. We negotiate special pricing through our wine & beer vendors (which allows us to still make a profit even during the spring and fall wine sale months when customers get a further 15 -20% discount). Vendors produce both point -of -sale promotional material and a large window sign to heighten customer awareness. They host no less than two in -store tastings on weekends during their monthly feature. We have found that this promotion results in profitable "add on" sales. Senior Citizen Discount -12- Working in coordination with Jubilee Foods, we offer a 10% senior citizen discount every Tuesday and Friday which is coincidental with their grocery store's senior discount program. This program creates a "one- stop- shop" effect. Harbor Wine & Spirits - Beer Label Surfside Pale Ale creation with Lucid Brewing of Minnetonka Keeping with the craft -brew trend that is sweeping the market, in 2012 we arranged to have our own beer label created through local brewery Lucid. Part-time Harbor Wine & Spirits employee Dean Fleming gave the beer a fitting name, "Surfside Pale Ale ". Mayor Mark Hanus presided over the ceremonial unveiling of the new beer with a festive ribbon cutting event that included in -store tasting and Surfside Pale Ale t -shirt sales. Our Mound Marketplace neighbor Carbone's Pizzeria, got into the spirit and cross - promoted our beer by offering it on tap. That summer we featured Surfside Pale Ale at the Spirit of the Lakes Festival. Harbor Wine & Spirits is the sole retailer of the bottled product, and arrangements are being made to have a "new" Surfside Pale Ale created for us each year in time for the Spirit of the Lakes Festival. We are currently sold out of the 2012 label. Promotions with Carbone's Pizzeria After our successful cross - promotion with Surfside Pale Ale, we've conducted two other promotions in partnership with Carbone's Pizzeria. In the fall of 2012, we co- hosted tasting promotions with Widmer Brewery and 2 Gingers Irish Whiskey. Both promotions were mutually successful. Spirit of the Lake Festival — Beer Garden The Spirit of the Lakes Festival takes place in July each year and Harbor Wine & Spirits hosts the beer garden which is open Friday /Saturday /Sunday of the event. We work with the Festival Planning Committee throughout the year to plan for this major community event. Harbor Wine & Spirits Assistant Manager Ron Gust manages the beer garden, which is staffed by store employees, members of the Rotary, Jaycees and Masons. This is an opportunity for us to reinforce name recognition and to support our community. For the past several years we have worked with Thorpe Distributing, who is our Anheuser -Busch supplier, to coordinate this event. They have a division devoted to this type of promotional activity and the largest promotional budget of any of our suppliers. Through them we are able to secure a refrigerated beer trailer, promotional items such as street banners, wristbands and point -of- sale /general signage all at no cost to the City. The beer offered at the beer garden is cross - promoted at the store. Spirit of the Lake Festival — Wine/Beer /Spirits Tastings -13- Wine and food pairings are presented as a special event hosted by Harbor Wine & Spirits at the Spirit of the Lake Festival. There are several classes offered featuring high end wine, beer and spirits. Event goers pay $30 per person to participate and receive gifts such as wine glasses, t- shirts and other promotional items. Attendees can place orders for the featured items at the event through Harbor Wine & Spirits at discounted prices for in -store pick -up. Westonka Community and Commerce Organization - Membership Harbor Wine & Spirits is in a unique position, representing both the City of Mound and itself as local business, as a member of the Westonka Community and Commerce Organization (CCO). Through our membership in the CCO we are able to network with other business and community leaders and promote our store and the City of Mound as a premier place to do business. Newspaper Advertising Laker/Pioneer News Lakeshore Weekly News As the official newspaper for the City of Mound, the Laker /Pioneer News is the primary newspaper for our sales promotions and other advertising efforts. We supplement this advertising with ads in the Lakeshore Weekly News in order to reach the entire lake community. Lake Minnetonka Magazine Advertising In 2012 we ran ads in the Lake Minnetonka Magazine for a six month period. In speaking with customers during the advertising period we found very few had seen the advertisements and as a result have re- focused our advertising efforts elsewhere. Lake Minnetonka Area Business Flyer The Lake Minnetonka Area Business Flyer is produced monthly and is a newsprint advertising that we have found to be very effective. We have used this flyer for the past eight years. We have advertised our upcoming sales, tasting events and promotions. To determine who has been noticing our ads we have run periodic 10% wine discount coupons and each time, we've received 50+ coupons back. BoomBoard In -Store Video Advertisements To increase add on sales, in November 2012 we partnered with LifeMedia to bring in -store advertising to Harbor Wine & Spirits. LifeMedia provides the flat screen television screen and generates the ads that run on the screen. Harbor Wine & Spirits promotions are the primary ads with other area business ads cycling through. (LifeMedia makes its money on the other ads it sells — there is no cost to the store.) The customer comments have been positive, with them appreciating the notice on current promotions, leading to additional sales of featured items. Social Media - Twitter 6L'� Mid -2012 the store launched its Twitter account. We have a limited following at this time and have been building our base by adverting the account on our cash register receipts. To create value to being one of our followers we have posted exclusive messages such as a the arrival of tightly allocated craft brews in addition to our broader advertised wine tastings and in -store specials. WineConnect - Website For the last six years we've partnered with WineConnect, a wine & spirits specialty website company to manage our store website. WineConnect has a massive database which contains brand photos and in- depth descriptions of the beer, wine and spirits we sell. WineConnect has a direct link into our inventory database so it can update the site with any new items we bring in and remove any we discontinue. We do not ship our product so the website is targeted to our local market. Each year we have a handful of customers place phone orders for in -store pick -up based on the website, but more importantly we have received excellent customer feedback on the ability to research complex wine choices and review their availability before making an in store purchase. -15- Harbor Wine & Spirits Sales & Marketing Plan March 2013 Report Prepared by: John Colotti - Manager Overview Harbor Wine & Spirits is a successful wine shop located on the shores of Lake Minnetonka. There is intense competition in this market with two competitors that we would consider local equivalents in addition to the two major regional competitors located in Minneapolis. Our success is based on several factors including product selection, pricing, knowledgeable sales staff, store design, in -store displays, tastings, in -store promotions, community event leadership and media marketing. 10 Year Anniversary Sale February 12`x' It's amazing to think that we have been at the "new store" for ten years. The change to the new location allowed us to design an updated layout that put our products front and center and better reflected Mound's status as a commercial destination for area residents. To celebrate we had a one day sale featuring 15 tastings, prize drawings and a 15% discount for wine and spirits same day purchases. This sale signified our standing in the community and was profitable for us as well, our Net Sales were up by $6724.93, and we had 227 more customers over the same day last year. Spring - Customer Appreciation Wine Sale Annual Sale in February Held for the past nine years the Customer Appreciation Wine Sale has helped drive sales at a time of year that is post - holiday and pre- summer peak sales times. The sale is primarily promoted through the Laker /Pioneer and Lakeshore Weekly News as well as on bag stuffers that go out the weeks leading up to the sale. Setting Harbor Wine & Spirits Customer Appreciation Wine Sale apart from our metro competitors is our universal 15% off by the bottle and 20% off by the case (including mix & match cases) wine pricing. Most retailors present a limited listing of wines for their sale; subsequently new customers are routinely impressed when they discover all their choice wines are on sale at our store. During the three week long sale we have in -store wine samplings hosted by our wholesaler's wine representatives. We conduct the tastings on Thursday, Friday and Saturdays during peak customer traffic time. M Fall Wine Sale Annual Sale in September /October This is the largest wine sale of the year, featuring 15% off by the bottle and 20% off by the case (including mix & match cases) wine. Our customers tell us they mark their calendars for this sale and we make it easy for them to remember it by advertising in the local newspaper, social media and bag stuffers. Sales events generate volume sales resulting in greater profit, by example the 2012 sale was held 10/04/12 to 10/21/12, and the total Net Sales were $153,532.37. The same fall season the month before 09/04/12 to09/21/12, Net Sales were $136,736.79. Repeal of Prohibition Sale December 5, 2012 Last year the industry was all a buzz over the 79th anniversary of the repeal of prohibition and we jumped onboard with a retro sales event that was a huge hit with our customers. Our Anheuser -Busch distributor, Thorpe Distributing, worked with us to sell single bottles of Budweiser for 10 cents per bottle to commemorate the price back in 1933! This was also a great time for our customers to try something new as we had beer and spirits vendors offering samples from Noon to 8 p.m. For those who made a purchase that day we had vendor giveaways such as bottle openers and baseball caps. While the wine sales are a great time to buy wine, this was an opportunity for our customers to get 20% off beer & spirits as well as wine. Given the December date of this event we questioned if it would cut into our holiday revenues, however, it proved to be very profitable with Net Sales for the day being $1924.30 vs. the 2011 same day Net Sales of $5124.96. That combined with the fact that our overall December sales for 2012 were up by $21831.93 over 2011 we are looking forward to the 2013 sale which will mark the 80th anniversary. In fact we already have commitments from the majority of our vendors to participate in the 2013 event. We promoted this sale with heavy print advertising in the Laker /Pioneer and Lakeshore Weekly News, social media and bag stuffers. Wine & Beer of the Month Each month we feature a wine & a beer of the month promotion. We negotiate special pricing through our wine & beer vendors (which allows us to still make a profit even during the spring and fall wine sale months when customers get a further 15 -20% discount). Vendors produce both point -of -sale promotional material and a large window sign to heighten customer awareness. They host no less than two in -store tastings on weekends during their monthly feature. We have found that this promotion results in profitable "add on" sales. -17- Senior Citizen Discount Working together with Jubilee Food's we offer a 10% senior citizen discount every Tuesday and Friday which is coincidental with their grocery store's senior discount program. This program creates a "one - stop -shop" effect. Harbor Wine & Spirits - Beer Label Surfside Pale Ale creation with lucid Brewing of Minnetonka Keeping with the local brew trend that is sweeping the state, in 2012 we arranged to have our own beer label created through local brewery Lucid. We gave the beer a fitting name, "Surfside Pale Ale ". Mayor Hanus proceeded over the ceremonial unveiling of the new beer with a festive ribbon cutting event that included in -store tasting and Surfside Pale Ale t -shirt sales. Our Mound Marketplace neighbor Carbone's Pizzeria, got into the spirit and cross - promoted our beer by offering it on tap. That summer we featured Surfside Pale Ale at the Spirit of the Lakes Festival. Harbor Wine & Spirits is the sole retailer of the bottled product, and arrangements are being made to have a "new" Surfside Pale Ale created for us each year in time for the Spirit of the Lakes Festival. We are currently sold out of the 2012 label. Promotions with Carbone's Pizzeria After our successful cross - promotion with Surfside Pale Ale, we've conducted two other promotions in partnership with Carbone's Pizzeria. In the fall of 2012, we co- hosted tasting promotions with Widmer Brewery and 2 Gingers Irish Whiskey. Both promotions were successful. Spirit of the Lake Festival — Beer Garden The Spirit of the Lakes Festival takes place in July each year and Harbor Wine & Spirits hosts the beer garden which is open Thursday/ Friday /Saturday of the event. We work with the Festival Planning Committee throughout the year to plan for this major community event. The beer garden is staffed by store employees, members of the Jaycees and Masons. This is an opportunity for us to gain name recognition and to support our community. For the past several years we have worked with Thorpe Distributing, who is our Anheuser -Busch supplier, to coordinate this event. They have a division devoted to this type of promotional activity and the largest promotional budget of any of our suppliers. Through them we are able to secure a refrigerated beer trailer, promotional items such as street banners, wristbands and point -of- sale /general signage all at no cost to the City. The beer offered at the beer garden is cross - promoted at the store. so Spirit of the Lake Festival — Wine /Beer /Spirits Tastings Wine and food pairings are presented as a special event hosted by Harbor Wine & Spirits at the Spirit of the Lake Festival. There are several classes offered featuring high end wine, beer and spirits. Event goers pay $15 - $30 per person to participate and receive gifts such as wine glasses, t -shirts and other promotional items. Attendees can place orders for the featured items at the event through Harbor Wine & Spirits at discounted prices for in -store pick -up. Westonka Community and Commerce Organization - Membership Harbor Wine & Spirits is in a unique position, representing both the City of Mound and itself as local business, as a member of the Westonka Community and Commerce Organization (CCO). Through our membership in the CCO we are able to network with other business and community leaders and promote our store and the City of Mound as a premier place to do business. Newspaper Advertising Laker /Pioneer News Lakeshore Weekly News As the official newspaper for the City of Mound, the Laker /Pioneer News is the primary newspaper for our sales promotions and other advertising efforts. We supplement this advertising with ads in the Lakeshore Weekly News in order to reach the entire lake community. Lake Minnetonka Magazine Advertising In 2012 we ran ads in the Lake Minnetonka Magazine for a six month period. In speaking with customers during the advertising period we found very few had seen the advertisements and as a result have re- focused our advertising efforts elsewhere. Lake Minnetonka Area Business Flyer The Lake Minnetonka Area Business Flyer is produced monthly and is a newsprint advertising that we have found to be very effective. We have used this flyer for the past eight years. We have advertised our upcoming sales, tasting events and promotions. To determine who has been noticing our ads we have run periodic 10% wine discount coupons and each time, we've received 50+ coupons back. BoomBoard In -Store Video Advertisements To increase add on sales, in November 2012 we partnered with LifeMedia to bring in -store advertising to Harbor Wine & Spirits. LifeMedia provides the flat screen television screen and generates the ads that run on the screen. Harbor Wine & Spirits promotions are the primary ads with other area business ads cycling through. (LifeMedia makes its money on the other ads it sells — there is no cost to the store.) The customer comments have been positive, with them appreciating the notice on current promotions, leading to additional sales of featured items. -19- Social Media - Twitter Mid -2012 the store launched its Twitter account. We have a limited following at this time and have been building our base by advertising the account on our cash register receipts. To create value for being one of our followers we have posted exclusive messages such as a the arrival of tightly allocated craft brews in addition to our broader advertised wine tastings and in -store specials. WineConnect - Website For the last six years we've partnered with WineConnect, a wine & spirits specialty website company to manage our store website. WineConnect has a massive database which contains brand photos and in- depth descriptions of the beer, wine and spirits we sell. WineConnect has a direct link into our inventory database so it can update the site with any new items we bring in and remove any we discontinue. We do not ship our product so the website is targeted to our local market. Each year we have a handful of customers place phone orders for in -store pick -up based on the website, but more importantly we have received excellent customer feedback on the ability to research complex wine choices and review their availability before making an in store purchase. -20- , 2415 Wilshire Boulevard Mound, MN 55364 Main: 952.472.3555 Fax: 952.472.3775 www.moundfire.com Vision ,Statement® It's our vision to be known as an innovative and progressive fire department. We are dedicated to the delivery of effective fire suppression, rescue services and quality fire safety education to the public. We strive to offer the best available education and training to our members. We are committed to providing an environment which fosters teamwork among members. We desire to have an atmosphere of open communication which promotes the health and welfare of individual members. This Annual Report is prepared for the Mayor and Councilors for the City of Mound, and also the Mayors and Councilors of the four other cities we serve. This report is also presented to and reviewed with our Mound Fire Commission members. 11, 'Joni CI '�dku'i la'hrnl _21_ Section I Overview & Highlights Pages 1 -5 Section H Organization and Staff Information Pages 6 -16 Section III Department Activities Pages 17 -23 And Performance Measurement Section IV Apparatus & Equipment Pages 24 -25 Section V Facilities Pages 26 -27 Section VI Finances & Budget Pages 28 -38 Section VII Strategic Plan Initiatives Pages 39 -42 Section VIII Fire Department Challenges Pages 43 -50 And General Information -22- Mound Fire Department 2012 Annual Report Overview and Highlights This overview provides a general, but important summary of the Mound Fire Department activities, accomplishments, and goals met for the year 2012. The detail and support documents provided within this 2012 Annual Report provide details and comprehensive information about the Mound Fire Department and the fire department operations. Please contact Fire Chief Greg Pederson if you have any questions or comments about the information, or would like to discuss any of the issues. General Note: This 2012 Annual Report is prepared for the Mayor and Councilors for the City of Mound, but also the Mayors and Councilors of the four other cities we serve. This report is also presented to and reviewed with our Mound Fire Commission members. Introduction and Overview The year 2012 was another successful year for the Mound Fire Department. This year we continued to work our strategic plan which focuses on hiring, training, and maintaining our firefighter staff, conservative budgeting and financial management, and maintaining or expanding our fire service contracts. Another major project that was completed in 2012 was the approval and implementation of changes to the Fire Relief Association Pension Plan. Our well trained and active paid -on -call firefighter staff remains our most vital asset. In 2012, our firefighter staffing level decreased from 42 to 38, with one person retiring and 3 others resigning. My staffing plan for 2013 is to increase the number of firefighters. In early January we had three key firefighters retire. As part of the updated MVFD Relief Association Bylaws, retired firefighters can apply to return to service following a 60 day leave. Of the three retirees, two returned to service in April. In March 2013, six (6) probationary firefighters were hired. As of April 8, 2013, we have 43 firefighters on staff. It is the dedication and commitment of the Mound firefighters that help uphold the service and quality of the Mound Fire Department. In 2012 our calls for service for Fire and Rescue call activity decreased slightly from the 2011 levels. Our fire department emergency call outs in 2012 were 554 vs. 615 call outs in 2011. Our firefighter emergency response hours for the year were about 13% lower than the 2011 levels with a total firefighter emergency response hours at 10,678 hours. The commitment of time and effort by firefighters continues to be substantial as shown in the detailed breakdown pages which show department activity. After reducing our administrative assistant staff person to "half time" or 20 hours per week in 2010, mid -year 2012 we increased the weekly hours from 20 to 32. The Administrative Assistant position is a critical component to the effectiveness of the department administration and operations. In 2012 the administrative assistant split her time between the police and fire -23- jAadininWinin & organization \annual report\2012 annnal report information \2012 annual report highlights and summary - ➢nal.docx -I- departments. With the disolvement of the police department at the end of 2012, the administrative assistant will be full -time working in the fire department in 2013. Organization, Staff Information, Performance Measurement The Mound Fire department continues to maintain a very high level of active volunteer paid -on- call firefighter staff. We currently have a staff of 42 volunteer firefighters, plus one part- time administrative assistant and a full time fire chief. The following points about organizational resources are supported by the documentation and graphs included in the pages that follow (please refer to the lists, graphs, and charts). • We did not hire any new firefighters in 2012. In March, 2013 six (6) new probationary firefighters were hired. • There were two firefighters that left the department in 2012 for job performance reasons and lack of ability to meet department job requirement standards, one who left following a worker's comp injury, and one who retired. In January, 2013 three firefighters retired, and two of the retired firefighters returned to service in April, 2013. • Fire and Rescue calls for service were quite steady and at an average level in 2012. The department continues to be very active with a total of 10,678 personnel hours spent at fires and other emergency calls (refer to the 2012 activity report). • We responded to 16 Mutual Aid requests in 2012 vs. 14 in 2011, and provided 863 mutual aid personnel hours. The requests for mutual aid will likely continue to increase in the future because of lack of resources at area fire departments, especially during daytime hours. • Our fire department response continues to generate an average of about 19 -20 firefighters per emergency call, which is a high number of responders as compared to many other volunteer or paid -on -call type fire departments. • MFD firefighters worked a significant amount of hours on apparatus, equipment, and station maintenance in 2012 for a total of 922 hours. • In 2012 our staff training hours was high at 2,487 hours. Our fire department staff is well trained and more diversified than ever. Quality training for staff is critical to our success. • Our fire department staff including all fire officers and firefighters is skilled as well with a total of about 400 years of accumulated firefighting experience. Our firefighters, through hard work and dedication continue to put in many volunteer hours, with a conservative estimate of all work by firefighters in 2012 at 161475 hours. Apparatus and Equipment In 2012, we continued to work on and implement our Apparatus Replacement and Efficiently Plan. Capital Expenditure spending on apparatus and equipment was insignificant in 2012 due to budget and financial limitations. There no additions to our apparatus fleet in 2012, however we are still considering our options for apparatus replacement as follows: -24- y \admin\admin & organization\annnal report\2012 annual report iniroaretion \2012 annual report highlights and summary -final. doex -2- Our 1980 Sutphen 100' Aerial Ladder truck is now over 30 years old, it has become obsolete, requires constant care and maintenance, and needs to be replaced sometime soon. The ladder truck has had many ongoing operational and functional failures or problems. The truck operational failures have often been a safety concern. In 2013 we will continued to work on our Apparatus Replacement and Efficiency Program by purchasing a new 2013 Chevy Tahoe SUV to support our Duty Chief and Duty Officer Program. NOTE: The cost of replacement for a 100' Aerial Ladder truck depends upon the path we choose (i.e. buy new truck, buy used truck, or refurbish existing truck). The cost of a new aerial ladder truck that is similar in size and performance to ours would be approximately $875,000. In any case we need a ladder truck for fire response and suppression, high level rescue, in support if our fire protection contracts, and our ISO Public Protection Classification in all cities. In 2010, the Fire Commission has asked me to make the ladder truck replacement a priority topic and a standard meeting agenda item. There have been numerous conversations about the ladder truck replacement throughout 2012, and the ladder truck is listed in the Capital Plan Equipment Plan for replacement in the future as soon finances allow. Note: We continue to analyze and consider new concepts to meet our ever changing needs for fire apparatus and equipment. We believe our fire apparatus replacement program plan considers all of the practical and available options for prudent and cost effective apparatus replacement purchases in the future. The Fire Commission meeting discussions often deal with apparatus needs, replacement plan, and future purchases. Facilities The Mound Public Safety Facility remains ideal for our daily administration, staff activities, apparatus housing, equipment storage, training, and emergency response operations. There are several facility repair and maintenance items that will need to be addressed in the near future. The items that need serious attention are listed on the Public Safety CIP attached. Facility Note: In 2012, we were able to refinance the Public Safety Facility Debt (bonds) to lower our facility interest expenses and help the overall budget. The interest savings for the fire department budget is $15K - $18K per year. Finances and Budget The Mound Fire Department expenses for 2012 were $33,672 under budget overall. This is a challenging task considering the fire department budget increased by only .19 % in 2012. Please refer to the budget summary page in this report for the 2012 budget vs. expenditures and financial details. e The fire account reserve fund balance at the beginning of 2012 was $260,822 with an estimated ending reserve balance of $278,822 at the end of 2012. -25- j: \admin \admin & organization\anmial reportQ012 annual report information\2012 annual report highlights and summary- final.doex -3- The year 2013 will bring some Administrative and Organization changes to the Mound Fire Department. The department organization structure, including fire department officer responsibilities, job tasks, and supporting staff duties will change for the better. A Duty Chief and Duty Officer Program will be implemented and tested as well, which will further improve our fire department operations and efficiency. Summary The year 2012 was another busy and very successful year for the Mound Fire Department. We believe we have continued our mission to serve our residents and customers well by providing an essential public service at a relatively low cost with high value. There has been virtually no budget or cost increase from 2011 to 2012. Our staff of firefighters and office personnel, apparatus, and equipment has continued to be maintained as our key strong elements. We have very nice functional fire station facility. As we look to the future, we anticipate improving and expanding our department operations further by partnering with Minnetrista as part of their expanded fire service protection plan. A Minnetrista partnership and a fire district concept will lead to more efficient use of our fire staff, apparatus, and equipment. A fire partnership or fire district will most likely be a financial benefit to the residents of Mound, Minnetrista, and possibly St. Bonifacius, plus provide an added benefit to all of the fire protection contract cities as well. We thank our city officials, staff, fire commission members, and citizens for their continued cooperation and support of the Mound Fire Department. Respectfully submitted, Gregory S. Pederson Mound Fire Chief 17 April 2013 -26- y \admin \admin & organization \annual report\2012 anneal report information \2012 annual report highlights and summary - Snal.doex -4- The fire fund balance actual increased by approximately $51,000 in 2012 to a year -end balance of $312,080 (not the final audited amount) This year end fire fund balance is higher than expected with positive variance as a result of budget management and less staff hours (wages) than anticipated. Challenges for the Future — Remain the Same We are well aware of the nationwide trends and the struggles that many paid -on -call fire departments face today and challenge that are anticipated in the very near future. While the challenges are many, the primary ones are: recruiting and retaining volunteer firefighters, maintaining the financial support and budgets needed to support apparatus and equipment purchases, wisely managing fire and emergency call volumes in consideration of firefighter or staff time commitment, and sharing services (mutual aid or other) among communities to insure efficient high quality service. In 2010 and 2011, and in an effort to be proactive with regard to sharing services with our neighbors, the Cities of Mound, Minnetrista, and St. Bonifacius applied for a Minnesota Department of Public Safety "Fire and Rescue Shared Services Grant. Throughout a substantial amount of time and money was spent on the Fire and Rescue Shared Service Project Study. As a result of the Fire and Rescue Shared Services Study, St. Bonifacius and Mound Officials agreed upon an Automatic Fire Aid Program that will help the City of St. Bonifacius starting in March 2103. The Automatic Aid program has Mound Fire Department responding to the City of St. Bonifacius weekdays from 0700 hours to 1700 hours, Monday through Friday. Basic details of the program are included in this report. In 2010, the Mound Fire Commission and Mound Volunteer Fire Department Relief Association Board of Directors authorized the funds needed to perform a study of the existing pension plan. Vardwaarden and Associates was hired to assist as an advisor and perform all of the tasks as defined in the pension plan study overview and details. The results of the pension plan study and all relevant data including an actuarial valuation of the pension plan was completed and implemented in 2012. The pension plan is critically important to the long term success of the fire department staff, so pension plan changes and improvements will likely follow. Strategic Plan and Initiatives In 2004, I began a Strategic Plan Initiative with a focus on four key areas including: Personnel and /or Staffing, Budget and Financial Management, Apparatus and Equipment, and Facilities. Many of the very important plan initiatives have been completed and/or are ongoing. Very significant progress (on the strategic Plan) has been made on the initiatives with more projects to be added and more work to be done. Implementation of this strategic plan is essential to the success of the Mound Fire Department in the future. A complete summary of the Strategic Plan and department accomplishments for the year 2012 is included in this report. Also included in the report is a one page highlight of the Fire Chiefs Priority Projects. -27- jladmWadmin & organizatioulamwal reportt2012 annnal report information \2012 annual report highlights and summary - final.docx -5- a) E UJ cn Vi L U vJ W a co U 1 a nl W L U. No R • • C I E. M Ea,��G c d �d �E 02E. cm C + G. ` Y OW. —H 0O .0 0=50��O, ® E ;+ L NCONaO- wE�`G c 0i�L y N ca N E C O 0 E L 4- O U) IL (L.0 G1 a) N = 000 DOm.z5v C y� r(Do N 06 C X: IL O. I e l l Lm CL 0 0 ca 0 , N��/ Ig Lim tm'C 0 r N R .v (A mCEm E�� d E uj cL 6. m CL J Q 1 1 I 0 I E. M Ea,��G C d �d �E 02E. cm C + G. ` Y OW. —H 0O > 0=50��O, ® E ;+ L NCONaO- wE�`G c 0i�L y N ca LO F, C O 0 E O O U) IL (L.0 G1 a) 000 DOm.z5v C y� r(Do M0 E. m -6- M Ea,��G C d �d �E 02E. cm C + G. ` Y OW. —H 0O > 0=50��O, ® E ;+ L NCONaO- wE�`G c 0i�L y N ca LO F, C O 0 o;® t60 C W O U) IL (L.0 G1 a) 000 DOm.z5v C y� r(Do M0 cn U. LL X: IL O. I e l l l l m -6- M Ea,��G d �d �E 02E. cm C + G. ` Y OW. —H 0O > 0=50��O, MmW=�+ y c t6 d -*' E= 0 ® L C L. F, 0�a 'tc E = o.cAo 0 d nd W u. LL Q C, I U ® 0 1 1 ! 1 -29- O a� U_ Q) O o E a` N Q� �E i� Co p d W � � C W G .. L cu Q) ® N E C L W N N a) > I N W C N� " >q (10 O) O E E WIE '^.® fA .V W CO N W � uj � U �C C Tcri N d O LL C E M � -29- � r � 1 :+ :# � r - ?� � i �\ �. � � I ► I .� � 2 m .0 bqqo, � � � \ � #° � � -so- -•- • • t i i i • • • -31- -9- 1 r 0 • -32- MOUND FIRE DEPARTMENT Years of Service List 33-,Years of service is as of: 4115/2013 Updated 04/15/2013 J: \admin\Admin & Organization\Active Information \SeR11.ty List - Current NAME START DATE EQUIP. # Yrs Svc * Chief 1 1 GREG PEDERSON 2/3/1975 18 38.20 Asst. Chief 2 RICK WILLIAMS 4/8/2013 22 29.20 Asst. Chief 3 GREG PALM 411/2013 15 28.96 Captain 11 4 TIM PALM 5/1/1989 17 23.96 5 EDDIE VANECEK 11/4/1991 34 21.44 Captain 12 6 DENNIS WOYTCKE 3/2/1992 24 21.12 7 PAUL BABB 9/13/1993 28 19.59 8 CHRIS POUNDER 9/13/1993 36 19.59 9 BOB CRAWFORD 3/21/1994 6 19.07 10 JASON MAAS 5/2/1994 32 18.95 Lieut. 11 11 JOHN LARSON 3/6/1995 5 18.11 12 RICH ROGERS 10/16/1995 19 17.50 13 ROGER KRYCK 12/4/1995 27 17.36 14 BRUCE GUSTAFSON 2/5/1996 11 17.19 Asst. Chief 15 MATT JAKUBIK 11117/1997 37 15.41 Dep. Fire Marshal 16 TONY MYERS 5/4/1998 33 14.95 17 DARREN POIKONEN 12/19/1998 30 14.32 Captain 14 18 KEVIN FLAIL 4/19/1999 7 13.99 Captain 15 19 BRIAN BERENT 4/2412000 1 12.97 20 STEVEN HENKELS 9/10/2001 2 11.60 Captain 16 21 MIKE MCCARVILLE 1/6/2003 35 10.27 22 JOSH CLEMONS 5/10/2004 23 8.93 23 MIKE FOLEY 511012004 16 8.93 24 PAUL JOLICOEUR 5/10/2004 39 8.93 25 MARK LEE 5/10/2004 40 8.93 26 DERAK ANDING 7/26/2004 3 8.72 27 JASON RICE 7/26/2004 42 8.72 Lieut. 14 28 ANDY DRILLING 5/20/2006 25 6.90 Lieut. 12 29 BEN FOSTER 5/20/2006 29 6.90 Lieut. 15 30 BEN GOTTSCHALK 5/20/2006 26 6.90 Lieut. 16 31 BRYAN GORMAN 1115/2007 21 5.44 32 MATT MORRIS 11/5/2007 44 5.44 33 JEREMY SPADER 11/5/2007 45 5.44 34 AARON CRANDALL 10/5/2009 8 3.53 35 JEFF HARRISON 10/5/2009 10 3.53 36 SHAWN HAYES 10/5/2009 38 3.53 37 JEFFREY BRYCE 3/21/2011 20 2.07 38 NICK FARLEY 3/4/2013 46 0.12 39 DANNY GRADY 3/4/2013 47 0.12 40 CHRIS HEITZ 3/4/2013 48 0.12 41 JED KOBERNUSZ 314/2013 49 0.12 42 AARON MORRISON 3/412013 50 0.12 43 DANIEL PATTERSON 3/4/2013 51 0.12 33-,Years of service is as of: 4115/2013 Updated 04/15/2013 J: \admin\Admin & Organization\Active Information \SeR11.ty List - Current atoLn�t a d d mLnetM V- m"t q- It X'-00000000000000 O W N N N N N N N N N N N N N N N o N N N N N N -N N N N N N N N N 9► -p ac N pq c 4F- D L O c 4- O a d i ® "r O tl1 u r L C S a a tn :3 ° x N a 'o d v L +- i +`-- o cy L o ® as �ai� Q3�°a�-j o� o� o 3 r- > rnrn + T° '_.� ass av c a ca °i' �j 9-tt-a�Fa- F- o -V m�tim ¢mmL i% j s 3 O _ � u N S C N t S t y L v v v t L +- +- +- ^� .-s N I' In \0 a N N N N v1 r.e .r .--o .r al u 4 Q Q N ct LO %0 G r- � C c `^ v4-. L i ii .. + -" a a a a s > O .-a N M [t 7. ,C C C C 07 _N a- +a- +a- } 7 7 7 •L N 01 s s S s a s °' U U V U V V -34- 12- M O N Ln II. Q N t a v d u a w U O b 0 b •o 41 10 Bpi m i LO ty d � o ®N c c ( j _ cili v^ f {� O m Cl) L LO 3 N i d > d L � 6 O C U u- o `2 s CO d • d p�j } `L-i U J O1 d1 LO Y Y } T L. L s ',O o t N d M N N N v v H N N Q Q E E N a a II- L Y s _U > CL cn � L d 0 t L U � M L 4- N � U U U 4- L in 03 N Y N 0 y s - a _ o > t A L U p C = p C d ::EmZOVW,¢o %0 L d N M �- LO v M M Ol r% y L VA) C 6 CO C r O Ui d T CO o y C o s L> L n c N = o L o u o d rL L d A N h C: -Y L } d LL m O h N ,L N E s a d VA N O � ¢ j= m U- D O d' N V Q L C U A> S u S in N L } Y W ii m h do Q cm D DL s v� d v- -35- s t L d y- o v h v °ti' F; a° 13- V b 0 •o d 'itlo L d N M �- i-- CL U J M M Ol r% y L VA) C 6 CO C r O Ui d T CO o y C o s L> L n c N = o L o u o d rL L d A N h C: -Y L } O LL m d -: V J 01 .O N ,L N E s a d O 0 Y N O � ¢ j= m U- D O d' N V Y Q C A> S u S in N L } Y W ii m h do Q cm 13- V b 0 •o d 'itlo L d M �- i-- CL U J M M Ol r% y L VA) C 6 CO C r O Ui d T CO Q d s VOj 1"7 y C o s L> L n c N = o L o u o d N - Y d L d A N h 13- V b 0 •o d 'itlo L d M �- Y y0., � A d VI 10 C\j 6 0 6 6 Y p' U J n LL m U L s — N d O 0 Y a Q j= m d CO IX -7 Q } r•I { cm D d -35- 13- V b 0 •o d 'itlo Mound Fire Department Hires 6 Probationary Firefighters There is a problematic trend across America and within the volunteer fire service of less people volunteering for firefighting duties. There has been a decline in the number of active volunteer firefighters in the United States by approximately 130,000 from 1984 to 2010. Over its long history, the Mound Fire Department has been very successful in maintaining a full complement of volunteer firefighters. In an effort to maintain a high quality firefighting staff, Mound Fire recently hired six firefighters who started on March 4, 2013 as probationary firefighters. The six new firefighters are Nick Farley, Danny Grady, Chris Heitz, led Kobernusz, Aaron Morrison and Dan Patterson. The hiring was in response to retirements over the past couple of years, along with planning for future staffing retirements. Hiring firefighter's now will allow us to continue to have a fully trained staff to continue provide excellent protection now and in the future. If you are interested in becoming a firefighter with the Mound Fire Department, we are always accepting applications. You can print an application form by visiting our website www. Moundfire.com, or stop by our office. -36- -14- Mound Fire Department 2013 Firefighter Stuffing Summary Name Activity/Description Staffing Level All Staff 2007 total of all department staff 45 (Includes chief and administrative) All firefighters 2007 total MFD volunteer staff 44 Jerry Ricke resigns after 4 years on March 4, 2008 43 Kevin Grady retired after 20 years on August 11, 2008 42 Paul Henry retired after 20 years on May 5, 2009 41 Matt Kvam (1.5 years) purchased a home 5/22 out of service area 40 6.4 miles away and resigned 6/09 Rod Stevens (8.5 years) purchased a home 7/31 out of area in 39 Norwood Young America and resigned 8/09. Hired four new probationary firefighters 10/05/09 43 Kevin Sipprell (20 years) Jim Casey (19 years) Dan Grady (20 years) retired after 20 years served on 04/06/10 42 resigned 05/13/10 with health issues related to 41 workers compensation injuries (non -fire dept.) retired on December 6, 2010 M Hired three new probationary firefighters 3/21/2011 43 Tony Boldon (4 years) Resigned 9/6/11 (performance reasons) 42 Matt Svihel Resigned 10/1/11 moved out of area 41 Gerald Berthiaume Resigned 6/28/12 (Didn't meet probationary 40 Requirements) Dan Heiland Resigned 10/09/12 (Didn't meet probationary 39 Requirements) Matt Hentges Retired after 16 years of service on 12/01/12 38 Jeff Andersen Retired after 32 years of service on 1/7/2013 37 -37- jAadmin\admin & organization \human resources \mfd staffing summary april 2013.doc -15- 1 Greg Palm Retired after 28 years of service on 1/8/2013 36 Rick Williams Retired after 29 years of service on 1/9/2013 35 Hired six new probationary firefighters 3/4/20131 41 Greg Palm Rick Williams Other considerations Tim Palm (23+ years) Eddie Vanecek (21 +years) Dennis Woytcke (20+ years) Paul Babb (19 +years) Chris Pounder (19+ years) Return to Service on 4/1/2013 42 Return to Service on 4/8/2013 R3 Considerations, Options and Action Plan Items ® MFD's consistently high firefighter staffing levels is very important to our fire service customers and contracts. ® It is much more difficult for firefighters today to maintain the high level of response percentages, and as expected of firefighters in the past. In this regard, more staff is better to achieve the same result. e Each firefighter costs the department budget approximately $5 -6K per year (low) Basic training of new recruits and the evaluation of firefighter's capabilities take about 15 -18 months. Training requires much more time classroom and certification. -38- j: \admin \admin & organization \human resources\mfd staffing summary april 2013.doc -16- 2012 Activity Report EMERGENCY CALLS FIRE /RESCUE CALLS 2012 IN OUR PRIMARY SERVICE AREA 538 MUTUAL AID CALLS 2012 OUT OF OUR SERVICE AREA 16 TOTAL OF ALL FIRE /RESCUE CALLS IN 2012 554 INCLUDING MUTUAL AID FIREFIGHTER EMERGENCY HOURS FIRE /RESCUE PERSONNEL HOURS 2012 IN OUR PRIMARY 9,815 SERVICE AREA MUTUAL AID FIRE /RESCUE PERSONNEL HOURS 2012 863 FIRE /RESCUE PERSONNEL HOURS 2012 10,678 INCLUDING MUTUAL AID FIRE /RESCUE PERSONNEL HOURS IN 2012 10,678 INCLUDING MUTUAL AID MAINTENANCE HOURS IN 2012 922 TRAINING (IN HOUSE) HOURS IN 2012 2,487 TRAINING (OUTSIDE) HOURS IN 2012 604 MEETING HOURS IN 2012 1,158 PUBLIC RELATIONS / FIRE PREVENTION 626 TOTAL VOLUNTEER HOURS FOR 2012 16,475 -39- J: \admin \Reports - Fire Incident & Performance\2012 Performance Reports\2012 Incident Report -17- L Q E d v d a^ Z 0 2 F- 0 2 w o O � s Z d W LL W = ® O W M Q' d LL Z o Im d N E O W N 1 N U Y u N a)O O w0 N M M (O 0 = N m M O M (co N LO 0 N � Y tm L C .� � N ^000 )A 0000. 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Z 2 cV C 2 45- -23- MOUND E DEPARTMENT 2013 Apparatus and Equipment Unit Number Description of Apparatus Radio Alias ID Comments 417 1981 Sutphen Aerial Ladder Ladder 411 Top replacement priority # 18 1984 Ford Pumper Engine #14 Sell in fall 2013 422 1990 E -One Utility Heavy Utility #11 Equipment Command Vehicle # 24 1996 Freightliner Pumper Engine 412 Remains Engine #12 # 26 1999 Ford F 250 Crew Utility #12 Oecomes general servic 428 2001 19' Silver Wolf Boat #11 # 29 2003 Salisbury Pumper Engine #11 Ptemains Engine ' #11 # 30 2003 Pace Am. HazMat Trailer HazMat 411 [Alias to HazMat Unit #I1 HazMat Trailer 933 1986 Chevrolet 1 Ton Grass #11 Grass Rig Mini Pumper 434 1998 Ford F -Super Duty Rescue 911 435 2007 Freightliner Tanker Pumper Tanker #11 750 GPM -3000 Gallon Tank 436 1998 Chevrolet Tahoe Utility #13 Chiefs Command Vehicle 437 2008 Polaris 6 x 6 SUV Utility #14 938 2009 Zodiac 11' C340 — 15 HP Boat #12 ew Boat in 2009 2010 SUV — Tahoe 4 x 4 Rescue #12 # 40 2010 Freightliner Tanker Pumper Engine #13 1250 GPM — 2000 Gallon Tank 441 2010 Haulmark Command Trailer Utility 415 Update 051310 Apparatus- Equipment Henn. Radio Alias -46- 1 -24- New m' service 201 ew in service 201 New in service 2010 M C � O N a v a u O Z m v � LL � Q. 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O d y y O d LL r N l�f V If) ip I� W F F F 25- i k N ai `m d N n (n w w 0 0 N O c LL N m m' m `m 6 Q d IL v i n E m a U CITY OF MOUND RESOLUTION NO. 13- RESOLUTION AUTHORIZING PURCHASE OF DUTY OFFICER VEHICLE WHEREAS, the Mound Fire Department will implement a duty officer program to increase efficiency, productivity and response times on certain types of fire calls; and WHEREAS, purchasing a SUV to be used by the duty officers will reduce wear and tear on more expensive vehicles and provides for greater flexibility in the department; and WHEREAS, a surplus from 2012 and the annual fire truck replacement fund contribution are available to fund the purchase of the SUV; and WHEREAS, the Fire Commission has discussed and approved the duty officer program concept and supports the vehicle purchase. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Mound, Minnesota, hereby authorize the City Manager to purchase an SUV to be used as the duty officer vehicle. Adopted by the City Council this 12th day of March, 2013. Attest: Catherine Pausche, Clerk 26- Mayor Mark Hanus 0 N d m U (D a m d m T z N LL ` R � 6 >. a` UJ a U J a Q U _2'J_ LL N y V o � N � O m a E m d LL d � N a N m E E a m a > � O n a E 0 N � (o o U 00 00 00 00 00 O 00 CO O O 0 0 0 0 O N N N O O O O O U M 0'/ O (D r w N M 1R 1q 1A W M C> a ` C O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ffl fH f9 O J 0O 0 0 N 0 Q O O N r Z Z A v H O Fy of w J 1fl LL y W w a w IL J d 0 0 0 0 0 '.O O V 0 ON ON V d 7 M 00 0 b m iL e N f9 f9 Vi d O L o 00 00 O O 000 O O O O N •M N Vi f9 4i _ O 9 O °0 00 °o a L 0 0 LL c O N O N T NI MK NM VM V R N c c R � w v d d V O c O 00 O C LL R C 0 0 0 G R d ' y °) 0 0 0 n � 0 V CL N N V d R O A Y V CL 0 0 0 0 LL R C R d d d V R y O E (D c y 0 0 0 0 O w O O (n O O O O N =' OI M V U d = V R O MNN OM ^ N _ N cc •V R O' LL R c O 01 d LL r = O O O U U C "' O 0 O d 0) •R c a o IL s c E o t 0 V V R V) F O O L c_ c 00 O 0 O 0 O O N a U N tp R _O L" N N (c0 R 2 a O d C G ° iZ LL d F V L' c ao R d _ 2 Z c C C C C z O o O , y w v `o �roal(i d w x a J O LL I- O N �+ w LL a� a J U W C7 m m .• d ad OU u H J f O Z T N d R W O O O R O m W t° W W V OyKU U d J J y •A •(u a °w v -49- o u m d a o ww ._°. 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CL � N c c t C ,00 ~ W E.. i c c d v o r r -50= o 0 -2g- W LO O O m O C W O cc O a O 00 o co O cc C (O O c M V M M N O E LO V _ r t4 N N r Q Lo M U� N iy V N N c M C L N O �0 O C a m d C) m F N d d N N N m a v C O O V v LL N W m v V d O CD w (9 fA V3 6% o PFY M r O p LL O N 7 m 7 'v 2 C d 4 N r N w w a 00 00 p y 0 o 00 CD O1 00 00 0 0 U) h c- O O N QI co � M N (00 N n N 0 N 64 EA EA (H fPr N N N W 06 N N Y T ca N O N c c w p N N E d o 2 v nU U m m F m U a N 'a a N n c a m 5 � d ` v O U m LL W a w h O (0 M 0 0 L6 N M 0 m 0 M i� 10 N C N lc N IA fA i/Y O r N � N 0g1 N � # r M Cf W h 10 r //T 1H 44 I MEEK 7 N N c 16 O !C? CL � N c c t C ,00 ~ W E.. i c c d v o r r -50= o 0 -2g- W o '« m O C W co cc 0 a ca m 00 o co 0 O 4 C N c M N M M N! W E N _ r t4 N N N v V c C C O �0 x W r C a m d C) m c v d d N N N m a v C O O V v LL N W m v V d O CD m N a` o M r O p LL O N 7 'v C d W N r N s o '« m v a M = m N C O O Lo U E E N _ O 0 t4 N N N v a c n x W r O d r i o 0 N r N W m CD m N o r O p LL Minnetonka Beach Minnetrista Shorewood Spring park Mound 61,197 7.65% 195,009 24.39% 18,160 2.27% 95,207 11.91% 429,947 53.78% 100.00% -51- 4/1712013 -29- Mound Fire Department November 20, 2012 Foltz M. 2013 Budget and Expenses - Breakdown Categorv/Descrintion *Budget Total 2013 • Operating Expenses • Pension Contribution — Relief Assn. • Building Rental, Lease, Debt Service *Operating Expenses (from above) • Salaries for all Staff (all inclusive) • Operations and Supplies • Capital Outlay Salaries for Staff Information: 2012 Budget $ Amount Percent $ 1,082,461.00 100% $ 643,721.00 59.47% $ 155,800.00 14.39% $ 282,940.00 26.14% $ 643,721.00 59.47% $ 401,666.00 37.11 % $ 183,800.00 16.98% $ 58,225.00 5.38% • Firefighter Response hours 12,000 per year @ $8.50 per hour = $ 86,000.00 • Duty Crew or Duty Officer Pay (in lieu of firefighter response pay) = $16,000.00 • Firefighter in -house Training hours 3000 - 3100 per year @ $4 per hour = $12,400.00 • Firefighter Station Maintenance hours 1200 per year @ $11 per hour = $13,200.00 • Fire Officer Pay (refer to separate list for officer pay details) = $26,700 • Firefighter meetings, PR events, other hours 1600 per year @ $0 per hour = $0 November 20, 2012 -52- -30- Public Works Department 2012 Capital Improvement Projects & Initiatives Street Reconstruction Proiect The 2012 Street improvement project on the North and West part of the Island is nearly completed with just the final wearing course of Asphalt and restoration to be completed. The City Council approved the 2013 street, utility and retaining wall improvement project is located on the South east part of the Island and is anticipated to start construction in May. Retaining Wall Replacement Proiect The annual retaining wall replacement program provides for the reconstruction of retaining walls in various locations throughout the city determined to be in poor condition. This is the ninth year of the retaining wall replacement program. The retaining wall replacement project includes the removal of the existing walls and construction of decorative modular concrete block walls and site restoration. Seal Coat Program The seal coat program is proposed again this year will include the reconstructed streets in the Dutch Lake area. Storm Sewer The City Engineer is reviewing locations that are in need of storm sewer improvements for 2013. Sanitary Lift Stations One sanitary sewer lift station was reconstructed in 2012 as part of the street reconstruction project and is located on Carlow Road. New underground wet pits and control panels, pumps and SCADA were included in the project. The Council approved the reconstruction of one lift station in 2013 on Three Points Blvd. at Glen Elyn Road. Inflow / Infiltration Study The City Engineer completed a study of the sanitary sewer lift stations and Inflow / Infiltration into the sewer lines. The results of this study will determine where the city needs to perform pipe lining in future years to come into compliance with the Metropolitan Council Environmental Services directive to reduce the amount of I /I or pay surcharge penalties. It is anticipated the city will be able to avoid the surcharge by following the study recommendations. -117- • Public Works staff is always researching the availability of grants for a variety of possible projects. Two grants have been awarded to the city for sanitary sewer lining/ repairs and one for storm water treatment. • Staff annually updates the vehicle replacement program to better manage and forecast future vehicle and replacement needs and costs. • Staff annually reviews the long range infrastructure repair and replacement needs of the City's storm sewer, sanitary sewer, and watermain. The results are incorporated into the City's capital improvement program. -118- 10 Public Works Department Work Plan / Initiatives Capital Improvement Projects • Annual City Street Reconstruction / Rehabilitation • Annual Retaining Wall Replacement • Upgrade and expansion of the SCADA system • Inflow / Infiltration Study — come into compliance with the MCES • Sanitary Lift Station Reconstruction • Annual Crack Seal and Seal Coat Program Surface Water Management • Annual Review of Surface Water Management Plan to insure compliance with administrative and maintenance requirements • Annual Review ofNPDES II permit and insure compliance • Annual Review of Storm Water Pollution Prevention Plan (SWPPP) and insure compliance • Review State and Federal laws and permit changes to insure City Policy and Ordinances are current • Review development plans to insure compliance with permit requirements • Annual Review of MCWD Rule Changes Parks • Annual update inventory of park structure and maintenance needs • Evaluate equipment replacement needs • Research possible funding sources for park improvements Docks • Develop new and potentially interactive website • Develop project plan for future rip rap and dredging Streets • Sweep City a minimum of two times per year • Installation of new street signs throughout City and in Street Reconstruction Project Area. • Decrease use of sand with new snowplowing and sanding equipment • Repair sidewalks and trails as needed • Include utility upgrades and repairs on annual street reconstruction project Storm Sewer • Continue annual lake outfall cleaning and dredging • Continue annual catch basin cleaning -119- 11 • Maintain stormwater storage / ponding areas • Work with MCWD on storm water quality improvements • Construct storm sewer improvements / repairs as needed • Include upgrades and repairs on annual street reconstruction project Sanitary Sewer • Continue televising and performing annual repairs as needed • In -pipe lining at locations with high inflow / infiltration problems • Reduce I / I as much as possible to avoid MCES surcharge • Annually implement SCADA monitoring and control system • Include upgrades and repairs on annual street reconstruction project • Coordinate with MCES to eliminate metering discrepancies • Upgrade /reconstruct lift stations • Coordinate as needed with proposed development Water • Implement SCADA system on new facilities • Annually update water system model with Bolton & Menk • Coordinate as needed with proposed development • Include reconstruction and repairs on annual street reconstruction project • Comply with Wellhead Protection Plan in accordance with State and Federal Regulations Administration • Annually update capital improvement program • Review Safety and Training needs of staff • Annually update Vehicle Replacement Program • Coordinate Public Works & Parks Maintenance Facility space needs • Coordinate Public Works review of grading and utility plans for development • Implement multi-year Seal Coat Program • Upgrade office filing system and record retention • Annually update inventory of City's infrastructure and mapping. • Implement GIS street and utility mapping capabilities when completed by consultant. -120- 12 Sewer The Sewer Department is responsible for maintaining 30 sewer lift stations, which are checked twice a week, and sewer line cleaning. They also perform pump repair, electrical repairs, pump removal and seal replacement. Major repairs are contracted out. The City's insurance company (LMCIT) has given us a timetable to complete the cleaning of 60 miles of sewer main in the City every 4 years, which means we would need to clean about 80,000 feet per year. Given our current manpower situation, we are only able to clean 40,000 to 50,000 feet per year. The current sewer system, installed in 1964, is in dire need of repair. In 2002, the city began televising the sanitary sewer system with a camera that enables us to detect problem areas. The 2003 Street Reconstruction Project enabled us to begin upgrading and repairing some of these areas. Upgrades and repairs are expected to continue with future Street Reconstruction and Sewer Lining Projects. Storm Sewer There are 545 storm catch basins, and approximately 93 outlets. The systems is being upgraded through are Street Reconstruction Project. Last year we upgraded storm sewers in 3 different areas of the city. The city started a program for the cleaning of the storm outlets in 2008. Scheduled maintenance for cleaning the lines begins in the spring of each year. no superintendent will also periodically check the streets to determine if and when plowing and sanding may be needed or should begin. If at all possible, waiting until it stops snowing before plowing is prefered, but in icy conditions trucks will be sent out as soon as possible. Personnel from Streets, Sewer, Water and Parks are all called out to help with plowing. The city has 5 single axle trucks equipped with front plows, side wings, and sanders. In addition the city also has 5 four -wheel drive pickup trucks with plows, 3 1 -ton dumps with plows and sanders, 1 skid -steer and 2 snow machines for the 11 miles of sidewalks. This year we contracted snow removal in the Central Business District. Right -of -way repair and maintenance begins in early spring. This includes repair of watermain break patches, tree trimming, hanging summer banners, storm sewer cleaning, and street sweeping. Street sweeping is a major time consuming task. The City has 2 street sweepers, 2 sidewalk brooms, 2 trucks for hauling, and 1 tanker truck. Following a normal winter of sanding, street and sidewalk sweeping can take up to 3 to 4 weeks to complete. Once the sweeping is completed, we prepare for seal coating projects and other street repairs. Every year, the Street Department also attempts to repair as many sidewalks as possible. On average, the city replaces 10 sections of sidewalk and approximately 100 feet of curbing per year. The City storm sewer system is very large with 584 catch basins, which are cleaned once a year, and 84 sump catch basins, which are cleaned twice a year. While we still contract out the larger repairs, the storm water fees we now receive allow us to make yearly repairs and upgrades to the system. Utilities Division: The Utilities Division for the City of Mound consists of 3 areas; water distribution, sanitary sewer collection and storm sewer. The Utilities Division operates much like a business. Revenues are generated from the sale of water to over 3500 customers, from meter sales, and service charges. Salaries, benefits and operating expenses are paid from the revenues received. There are three budgets prepared for the Utilities Division; one for the Water Department, one for the Sanitary Sewer Department, and one for Storm Sewer Department. Line item expenses for each department does not vary much from year to year. The biggest percentage of the budget each year is for salaries, capital outlay, workers compensation, liability insurance and the Met Council sewer charges. Water The City has 3 wells, one of which is for emergency back -up only, one booster station, and a combined storage of 750,000 gallons in 2 towers and 265,000 in 1 standpipe. There are approximately 45 miles of watermain. The city is interconnected to the City of Spring Park at the Seton Bridge, and there are 2 interconnections with the City of Minnetrista. The Water Department is responsible for, among other things, meter readings, tower inspections and hydrant flushing. In 2012, we pumped 253,646,000 gallons of water. Every 5 -7 years, the City's water towers are inspected for the condition of the coating and anodes inside the towers. The water system is flushed out twice a year in order to reduce rust problems for our customers. -115- 7 Public Works Department 2012 Annual Report 2012 At A Glance The 2012 street improvement project will be completed this spring with the placement of the final wearing course of bituminous. A number of new watermain gate valves were installed along with new watermain. One new lift station on Carlow Road was also put into service. The sewer department worked with a contractor on our Inflow / Infiltration (I / I) reduction project. These consisted of repair of bad connections and complete lining of over 500 feet of sewer pipe in various locations. Personnel There are 9 full time employees in the Public Works Departments. The Superintendent responsibilities include evaluation of employees, scheduling of work, delegation of projects and tasks, budget preparation, reports, determination of emergency call -outs, construction meetings, project inspections, purchasing of materials and equipment, answering questions, resolving complaints, etc. The Public Works Director is in charge of both Public Works and Parks. There is one full -time Administrative Assistant for both Public Works and Parks. The MPCA requires that the City have at least one full -time employee with Class C certification in Water Supply Operations and one full -time employee with Class SD certification in Wastewater treatment. Certificates are renewed every three years. All employees receive continuous training and education at various schools, seminars and conferences. The city contracts with Safe - Assure to keep us in compliance with OSHA standards and regulations. This training is done once a month. Along with this training, the city has a Risk Management inspection conducted by the LMCIT every year. Street/ Fleet Division The primary function of the Street Department is to maintain and repair the city streets and storm sewers. This includes plowing and snow removal, sanding, sweeping, clearing street right -of- ways of brush and tree limbs, bituminous patching, street preparation for seal coating, repair and maintenance of storm sewer catch basins, street sign repair and installation, curb and sidewalk repair, street lighting, equipment maintenance, installation and repair of banners and Christmas decorations, 12 parking lots, 27 cul -de -sacs, and 11 miles of sidewalks. During the winter months, it is the responsibility of the public works superintendent to determine when to plow and chemically treat the streets. The public works superintendent depends on the National Weather Service, local weather reports for information conceming weather systems moving in our direction and the Police Department to keep staff updated on road conditions. The public works -114- City hall Maintenance / Janitorial The Parks Division is responsible for the seasonal lawn care and snow removal at City Hall. It is also responsible year -round for the heating and air conditioning inside City Hall. Parks staff is also responsible, within their capabilities, for the repairs to plumbing, heating and related equipment. Major repairs for the heating and air conditioning systems and cleaning services are contracted out through the direction of the Parks Division. Janitorial duties are contracted to an outside vendor. Parks & Open Space Commission and Dock & Commons Commission The Parks & Open Space Commission is made up of 7 members and the Docks & Commons Commission is made up of 7 members, including a City Council Representative for each commission. Their responsibilities include: PARKS: • Parks /wetlands and related concerns • Cemetery operation • Island Park Hall and Depot building repairs • Nature Conservation areas • Swimming beaches • Depot rental and use • Budget preparation • Park Improvements • Adopt A Green Space Issues discussed and reviewed in 2012: • Park Cleanup Special Events • Distribution of funds allotted for park improvements • Park planning for new developments • Park Signage • Adopt a Park Program DOCKS & SLIPS: Issues discussed and reviewed in 2012: • Public Lands Maintenance Permits • Commons Dock Fees • Dock Location Map Update • Zebra Mussels — Effect on our program • Rip Rap projects • Future maintenance needs of Commons shoreline Equipment Maintenance and Replacement Preventive and unplanned maintenance of all related equipment is the daily responsibility of the Parks & Docks Division. The Parks Division follows the equipment replacement schedule which allows for the replacement of equipment on a planned schedule based on its age and serviceability. This schedule will allow the Parks & Docks Division to operate efficiently and provide safety for the general public and the parks crew. -113- As of 12/31/2012, the dock fund balance was $154,646, which was an increase of $31,253 from 2011. This increase is attributable to favorable budget variances for revenues and expenditures. There were also no major improvements conducted during 2012. There are 3 plat- dedicated neighborhoods within the City of Mound with respect to lakeshore; 2 of which have had legal action and resulting Settlement Agreements. Woodland Point's Agreement was implemented beginning with the 2001 season. The Dreamwood Settlement Agreement was signed in late 2006 with full implementation being required in the 2012 season. In anticipation of this, staff worked with the non - abutting and abutting groups trying to facilitate a timely and smooth transition for all site holders. 2012 Slip/Dock fees: $ 350 /yr for a city -owned slip (one boat) $ 75 /yr for Personal Watercraft sites on City -owned slips $ 1,148 /yr for a slip at the Lost Lake Villas (includes $348 escrow amt) $ 300 /yr for a dock site (includes one boat) $ 150 /yr for Secondary site holder (share) dock fee (includes one boat) $ 75 /yr for each additional boat at a dock site (Primary & Secondary holders) $ 20 /yr non - refundable Wait List fee $ 50 /month late fee for abutting residents Commercial Applications (Al & Alma's and Mtka Boat Rental) $ 500 /yr Basic renewal fee $ 30 /each Water slips 10 /each Boats stored on land Depot and Island Park Facilities No improvements have been made at the Depot building since 1998 when interior carpeting, painting, cabinets, fans and lighting were completed. In 2003, a new curb and asphalt parking lot was completed. In 2011 a new shingle roof was installed. The facility is currently being utilized for local organizational meetings and private parties. User response has been very positive. Improvements will reinforce the Depot as an asset to our City. Depot Rental Rates $400/$50 Damage and Clean-up Deposit $250 /per day Non -Mound Residents $125 /per day Mound Resident FREE Mound Westonka Community Civic and Non - Profit Charitable Organizations (starting in 2013 charging $25.00) Fees were waived on 56 groups, resident payments totaled $4,687.50, non - resident payments totaled $250.00. Total rental payments received were $4,937.50 -112- 4 Hazardous Tree Removal As of December 31, 2012, the yearly total of hazardous tree removals from City property was 57 trees removed, 14 stumps chipped, 36 trees trimmed that posed a hazard, and 9 sites had brush removed. From private property, 6 trees were marked for owner removal due to hazardous conditions. Of the 6 trees 1 was contracted for removal by the City as Forced Removal. Diseased and hazardous trees are removed on a complaint basis. When a complaint is received, an inspection of the tree is done to determine the need for removal and the ownership. City owned trees are removed by a contractor as soon as possible, while private trees are removed in accordance with City Ordinances. Private trees not removed in the grace period allowed, are force removed. The cost of a force removed tree is billed to the property owner. If this bill is not paid, it is then assessed to their property taxes for the following year. Weed Notices In 2012 approximately 98 weed notices were issued by the Community Service Officer for unkempt grounds. Of which 90 owners' complied with the work requirement. The 8 non- compliance properties had the work performed by a City hired contractor. The cost incurred by the City is on these non - complying properties are billed to the owner. If the owner does not pay, the cost is assessed to their property taxes. Dock Program The 2004 shoreline study showed there are 104,225 lineal feet of Lake Minnetonka shoreline in the City of Mound of which 36,301 lineal feet is controlled by the City. The dock program claims 29,500 lineal feet of the 36,301 feet for our LMCD (Lake Minnetonka Conservation District) license which allows for up to 590 boats. In 2012 the docks program saw 524 boats registered at the 310 dock sites and 100 slips. This buffer of unused boats (under the 590) allows the City to operate the dock program without placing a restriction on the number of registered boats at individual docks. As of the writing of this report, there are 143 residents on the waiting list to become part of the dock program. This is up slightly from the prior year, when the number of residents on the wait list was 138. For quite awhile, the average wait time was approximately 4 -5 years. Currently, an estimated wait time is approximately 6 -7 years. This wait time is solely dependent on non- abutting site holders not renewing their applications. The 37 slips at the Villas on Lost Lake are owned by the City of Mound and have a separate license with the LMCD which utilizes 2,000 lineal feet of the Cities shoreline. The original intent of the slips were to accompany the planned 37 Villa units. With the downturn in the housing market, various supplemental agreements between the City and the Villas developer have allowed the City to offer the remaining slaps to residents on a year to year basis. The current development planned has reduced the number of units to a total of 27, down from the original plan of 37 units. The Lost Lake transient slips have seen increased usage as the greenway was completed and downtown development has occurred. This complex also has a separate license with the LMCD and utilizes 1,500 lineal feet of Cities shoreline. -111- 3 Parks & Docks Division 2012 Annual Report The Parks Division is responsible for managing the 33 parks in the city, the maintenance and management of the Municipal Cemetery, the Municipal Docks Program, Municipal Buildings, Transit Center Parking Deck, Mound Bay Park Depot, and the Veterans Memorial Plaza. In addition, the division is responsible of the inspection of weeds on unkempt grounds, and hazardous tree removal from city property. The division is also responsible for the preventive maintenance of its equipment. Assisting in this effort are three full -time parks maintenance employees along with a summer Docks Inspector and seasonal maintenance employees. The Parks, Open & Space Commission (POSC) and the Dock & Commons Commission (DCC) function as advisories for bringing recommendations to the City Council regarding their respective issues. General Comments During 2012, the Parks Division was involved mainly with maintaining current playground equipment and lands. In past years, we have seen improvements to Avalon, Belmont, Chester, Dundee, Langdon, Philbrook, Seton, Swenson, Three Points, Tyrone Park, Alwin Park, Belmont, Weiland, Scherven and Seton Park. Along with development, maintenance for the parks must be planned. Maintenance and upkeep of the parks is a major ingredient for their success. Regular mowing, leaf removal, litter pick up and periodic repairs are aspects of the parks and generally take up the most hours over the year. These improvements and maintenance provide a visual confirmation that the City of Mound has a commitment to the community. The downtown Streetscape and Greenway completed in 2006 has had the routine maintenance turned over to the Parks Division. It is staffs belief that this amenity is high priority for maintenance scheduling. The Streetscape and Greenway are visited daily to provide a well groomed entrance into the main business area of Mound. Parks maintenance staff have been at the Island Park Garage since 1989. Following a 1987 engineering improvement recommendation report, a new roof was installed in 1990, and electrical updates, new garage doors and exterior painting were completed in 1991. Major foundation repairs and driveway reconstruction were completed in 2012. A facilities study conducted in 2002 noted that the Park Maintenance Facility continues to need improvements. Staff is looking forward to the consideration of moving the Parks Maintenance Division to a joint complex with the Public Works Division. -110- L Parks Division 2012 Annual Report ....... ............................... 2-5 II. Public Works 2012 Annual Report ......... ..............................6 - 8 III. Public Works Department 2012 Capital Improvements ............. 9-10 IV. Public Works Department Work Plan/ Initiatives .....................11 -12 -109- 2012, Permit Kind Permit Valuation Dwe Count Uni Permit Type: BUILDING SINGLE FAMILY, DETACHED WINDOW INSTALL 27 $136,708.00 SINGLE FAMILY, DETACHED WINDOWS S., DOORS 3 $13,365.00 SINGLE FAMILY, DETACHED WINDOWS & SIDING 5 $175,900.00 Permit Type: BUILDING - Total Period 311 $8,162,212.00 Report Total: -107- 2/6/2013 Period 311 $8,162,212.00 Page 2 of 2 City of Mound Valuation Report - Summary Issued Date From: 1/1/2012 To: 12131/2012 Permit Type: Select Property Type: All Construction Type: All Include YTD: No -Al Permit Kind Permit Type: BUILDING Permit Valuation Dwell Count Units COMMERCIAL ALTERATION 4 $29,205.00 COMMERCIAL CHANGE OF OCCUPANCY 1 $500.00 COMMERCIAL DEMOLITION 4 $87,103.00 COMMERCIAL NEW CONSTRUCTION 1 $1,975,000.00 COMMERCIAL REMODEL 3 $224,316.00 COMMERCIAL RETAINING WALL 1 $18,000.00 COMMERCIAL ROOFING 3 $22,950.00 COMMERCIAL SIGN, ALTERATION 1 $400.00 COMMERCIAL TENANT FINISH 1 $350,000.00 MULTI FAMILY (5+ UNITS) DEMOLITION 1 $37,101.00 MULTI FAMILY (5+ UNITS) ROOFING 1 $7,500.00 PUBLIC ALTERATION 1 $1,500.00 PUBLIC FOUNDATION REPAIR 1 $10,000.00 PUBLIC ROOFING 1 $0.00 PUBLIC SIGN, PERMANENT 1 $30,602.00 SINGLE FAMILY, ATTACHED DECK 1 $5,000.00 SINGLE FAMILY, ATTACHED REMODEL 1 $30,000.00 SINGLE FAMILY, ATTACHED ROOFING 4 $23,900.00 SINGLE FAMILY, ATTACHED ROOFING & WINDOWS 1 $16,000.00 SINGLE FAMILY, DETACHED ACCESSORY STRUCTURE 6 $123,972.00 SINGLE FAMILY, DETACHED ADDITION 10 $423,898.00 SINGLE FAMILY, DETACHED ALTERATION 28 $165,330.00 SINGLE FAMILY, DETACHED BASEMENT FINISH 7 $148,905.00 SINGLE FAMILY, DETACHED DECK 31 $245,618.00 SINGLE FAMILY, DETACHED DEMOLITION 8 $8.00 SINGLE FAMILY, DETACHED DOORS 12 $53,307.00 SINGLE FAMILY, DETACHED DRAINTILE 3 $13,375.00 SINGLE FAMILY, DETACHED EGRESS WINDOW INSTALL 2 $27,380.00 SINGLE FAMILY, DETACHED FIRE REPAIR 5 $295,279.00 SINGLE FAMILY, DETACHED FIREPLACE 22 $65,865.00 SINGLE FAMILY, DETACHED FOUNDATION REPAIR 6 $52,494.00 SINGLE FAMILY, DETACHED INTERIOR DEMOLITION 2 $9,000.00 SINGLE FAMILY, DETACHED NEW CONSTRUCTION 6 $2,275,000.00 SINGLE FAMILY, DETACHED PORCH /SUN ROOM 2 $63,469.00 SINGLE FAMILY, DETACHED REISSUE 2 $44,917.00 SINGLE FAMILY, DETACHED REMODEL 21 $465,760.00 SINGLE FAMILY, DETACHED RETAINING WALL 1 $1,200.00 SINGLE FAMILY, DETACHED ROOF /SIDING /WINDOWS 1 $38,000.00 SINGLE FAMILY, DETACHED ROOFING 50 $279,556.00 SINGLE FAMILY, DETACHED ROOFING & SIDING 3 $24,400.00 SINGLE FAMILY, DETACHED ROOFING & WINDOWS 1 $5,741.00 SINGLE FAMILY, DETACHED SIDING -t06_ 15 $144,688.00 H 2/6/2013 Page I oft / / ( \ E j ( \ \ \ \ S E� \ \ j\ ) \ \ OD � � A / f = | b § § < 2 2 L } \ / \ 04 cq C14 N C14 (� C. § A Co 2 \ 2 ~ § e a < . � w « e I 0 z R 3 0 ® § ± R c / \ \ \ k § \ \ w z ■ o o z § § § » * o § o c \ \ ) § 0 ) } q 2 U 0 5 § / ( § § _ ° = ± c 0 ® - c z $ a w 0 0 o= c@ 0 u o ± § o = o § § § ( \ \ \ z IL IL«u 0 V- @ / 3 / I ¥ k / \ LO a N m 00 < w u \ ( / § < ° < < < } \ \ \ \ \ \ \ } ` / / I \ -405- LLI F- 0 / )� j( � § / / 5 (F- 0 2 \ / \ m cu ca \ \ \ \ \ \ / \ m cu ca { / 2 § § \ \ / \ \ co m ca co \ \ \ co C) \ \ 2 o 0 0 z U e z 0 ) } & 2 Q± 2 i z 2 £ u \] A m 9 4 =@ m$ 2 F±@ e # ` } 0 0 5 5 5 5± 5 a u f \ / / \ / \ ¥ L \ \ ) > D E ± ( ƒ 0 j 0 2 § E± g g g° S g i °§ g E §( q ( 2 \ } \ } } \ / G \ « / 3 0 / z 2 \ § { / 2 § § \ \ / \ \ co m ca co \ \ \ co C) \ \ 2 o 0 0 z U e z 0 ) } & 2 Q± 2 i z 2 £ u \] A m 9 4 =@ m$ 2 F±@ e # ` } 0 0 5 5 5 5± 5 a u f ) / § ¥ y ) > D E ± ( ƒ 0 j 0 2 § E± g g g° S g i °§ g E §( q ( 2 \ } \ } } \ / G \ « / 3 0 / z 2 \ § ) \ 16 § c [ $ * ( D = ( § / c \ D qƒ ) ) @ $ ) ± o ) E R « a }(\ z z x ( 2 § u o @ q «/§ « E 5 d 3 C) ) / ( ( =¥ $ ) co co a r \ LLI f ) § } \ \ G E ) z \ } z § e z x 0 o z z 3( J ƒ% a 7 =)ƒ k a S) gƒ \ ¥ \ ) 3 ƒ \ ¥ \ ) U- 3 \ y \ E j \ ` \ \ � c � � ® \ \ � � � � � � � • Conducted stakeholders meetings with representatives of Mound Marketplace, Commerce Place, Stonegate Plaza along with local residents and business leaders which is an on -going effort. Also numerous courtesy meetings for interested parties related to development sites in Mound have been held. • Presentations at Mound Rotary and Mound Westonka Schools Re: Mound development update /projects. • Commenced downtown marketing luncheon meetings /informal task force meeting in December 2013. • Assisted with Mound Centennial projects and activities including Centennial Book and Volksmarch . • Member of Westonka Community and Commerce and Scarecrow Stomp Committee; volunteer for Gillespie Festival of Trees and Lights. • Temporary seasonal approvals for Mound Farmers' Market and More and Johnny's Garden Center at Jubilee Foods. 2013 PROJECTS LIST. • Parking requirements • Expansion permits regulations • Urban agriculture —bee keeping/chickens report/study • Pawn shops report/study • Interim /special use permit regulations • Streamlining of public lands permit process for minor projects (i.e. tree trimming, "same and similar" replacement of stairs and steps, etc.) in cooperation with Public Works and Parks Departments SUMMARY. On behalf of the Planning and Building Inspections Department, I would like to express my sincere thanks to the City Council and Planning Commission for their dedication and commitment to our department and to the City of Mound. The countless hours that are spent on land use and permitting issues do not go unnoticed. Additionally, I would like to thank the other City departments and consulting staff that have provided assistance and staff support throughout the year. It is an honor and a privilege to work with such dedicated individuals who assist in every area of my job and also make it fun to come to work every day. As always, we welcome any suggestions or comments that the City Council may have. You can be assured that we will continue our endeavors to improve efficiency and customer service in our Department. -103- • Amendments to sign regulations for expanded allowance for banners and portable signs and to allow additional provisions for administrative approval. • Review /study of home occupation signage regulations including Planning Commission and Council consideration. • Seasonal approvals for 2012 Mound Farmer's Market & More. • Project approvals for new Walgreens and restaurant /bistro in downtown Mound including but not limited to PC /CC consideration and comprehensive plan amendment meetings at Metropolitan Council. • Project approvals for Westonka Animal Clinic in Mound Marketplace shopping center (freestanding building). • Subdivision and project approvals for Idlewood at Anderson Grove major subdivision and related items (i.e. letter of security, etc.). • Downtown Mound marketing study contract with Maxfield Research. • Parking analysis and space determination for Stonegate Plaza shopping center and Main Street Church. • Cooperated with University of Minnesota students regarding report on sustainability efforts and project in Mound; also Council presentation. • Report/policy development on use of Chapter 429 financing for residential projects. • Petition and Waiver Agreement with Woodlyn, LLC for use of Chapter 429 financing for certain improvements in Woodlyn Ridge residential subdivision. • Third Amended and Restated Addendum to Contract for Private Development with Mound Harbor Renaissance. • Building Official contract for professional services agreement and revised fee ordinance which included changes to allow for $75 maintenance permits (i.e. residential reroofing, etc.) • Temporary site /building approvals for use of former Trading Post by New Morning Church; also subsequent extensions. • Mound Magic presentations at Al and Alma's Restaurant in October and November. -102- COMPLAINTS AND ORDINANCE ENFORCEMENT. The Community Development Department continues to provide assistance and support to other City departments with regard to code complaints and nuisance related issues. • The majority of complaint related issues (i.e. exterior storage, inoperative vehicles, etc.) are handled by Community Service Officer Mike Wocken. Public Works Superintendent Ray Hanson also assists with grading/drainage and /or related issues. • Staff conducts ongoing review to evaluate ordinances to address deficiencies within the City Code. • The cooperation the Community Development Department receives from the Police and Public Works Departments continues to be exemplary and we are specifically appreciative of the efforts of Mike Wocken and Ray Hanson. PLANNING COMMISSION CASES. A summary of the planning cases from 2005 -2012 is provided below: 2012 (25) 2011 (14) 2010 (13) 2009 (15) 2008 (17) 2007 (32) 2006 (51) 2005 (84) PLANNING AND BUILDING INSPECTIONS DEPARTMENT PROJECTS. Provided below is a list of projects which were undertaken and /or completed by the Planning and Building Inspections Department. It is important to note that several of these projects were done in cooperation and with assistance from other Departments /Consultants. • Amendments to zoning ordinance related to "retail definition ". • Amendments to subdivision regulations related to variances for subdivision exemptions and to clarify intent of boundary adjustment /waiver /subdivision exemption procedures. • Amendments to subdivision regulations related to torrens /abstract property. -101- cm_ o`er Mound Planning and Building Inspections Department Annual Report to City Council for 2012 On behalf of the Planning and Building Inspection Department, I am pleased to present the 2012 Annual Report to the City Council for review and consideration. STAFF. The Department is staffed by Administrative Assistant Jill Norlander who was hired in February 2001. My tenure as Community Development Director for the City of Mound began in July 2001. The Planning and Building Department is also provided technical support from Public Works Superintendent Ray Hanson who began working for the City of Mound in May 2005. CONSULTANT SERVICES. The Building Official position was eliminated in January 2005 and full -time building inspection services were assumed by MnSpect on a contract basis. The current contract, approved on December 11, 2012 is in effect until December 31, 2015. Scott Qualle is the designated Building Official. Rita Trapp of HKGi has been providing consultant planning services to the City of Mound since June 2005. BUILDING PERMIT SUMMARY Building Permit Information 2003 -2012. Year Building Permits Valuation 2012 311 $8,162,212 2011 411 $8,053,468 2010 535 $7,264,815 2009 302 $4,748,360 2006 269 $ 5,223,741 2007 258 $10,855,936 2006 329 $17,709,317 2005 385 $14,148,260 1 -100- MoTall City of Mound NEED DATE Page 21 Future Accounting Standard Changes - Continued GASB Statement No. 68 - The Accounting and Financial Reporting of Pensions- an Amendment ofGASB Statement No. 27 The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision - useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency, This Statement replaces the requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this Statement. This Statement is effective for fiscal years beginning after June 15, 2014. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve the decision- usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure ' of pension expense.. Decision- usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. This communication is intended solely for the information and use of management, City Council, and other within the City, and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff. NEED DATE Minneapolis, Minnesota 952.835.9090 • Fax 952.835.3261 -98- w .aemcpasxwn ABDO, EICK & MEYERS, LLP Cera(tted Public Accountants City of Mound NEED DATE Page 20 Future Accounting Standard Changes - Continued GASH Statement No. 67 - The Financial Reporting for Pension Plans- an Amendment to GASB Statement No. 25 Summary The objective of this Statement is to improve financial reporting by state and local governmental pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision - useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement replaces the requirements of Statements No. 25, Financial Reportingfor Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 50, Pension Disclosures, as they relate to pension plans that are administered through trusts or equivalent arrangements (hereafter jointly referred to as trusts) that meet certain criteria. The requirements of Statements No. 25 and No. 50 remain applicable to pension plans that are not administered through trusts covered by the scope of this Statement and to defined contribution plans that provide postemployment benefits other than pensions. This Statement is effective for financial statements for fiscal years beginning after June 15, 2013. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial . reporting primarily through enhanced note disclosures and schedules of required supplementary information that will be presented by the pension plans that are within its scope. The new information will enhance the decision- usefulness of the financial reports of these pension;plans, their value for assessing accountability, and their transparency by providing information about measures of net pension liabilities and explanations of how and why those liabilities changed from year to year. The net pension liability information, . including ratios, will offer an up -to -date indication of the extent to which the total pension liability is covered by the fiduciary net position of the pension plan. The comparability of the reported information for similar types of pension plans will be improved by the changes related to the attribution method used to determine the total pension liability. The contribution schedule will provide measures to evaluate decisions related to the assessment of contribution rates in comparison to actuarially determined rates, when such rates are determined. In that circumstance, it also will provide information about whether employers and nonemployer contributing entities, if applicable, are keeping pace with actuarially determined contribution measures. In addition, new information about rates of return on pension plan investments will inform financial report users about the effects of market conditions on the pension plan's assets over time and provide information for users to assess the relative success of the pension plan's investment strategy and the relative contribution that investment earnings provide to the pension plan's ability to pay benefits to plan members when they come due. 952.835.9090 • Fax 952.835.3261 www.xemopasxoln -97- City of Mound NEED DATE Page 19 Future Accounting Standard Changes GASH Statement No. 61 - The Financial Reporting Entity.: Omnibus an Amendment of GASB Statements No. 14 and No. 34 Summary The objective ofthis Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14 and the related financial reporting requirements of Statement No. 34, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. This Statement also amends the criteria for reporting component units as if they were part of the primary government (that is, blending) in certain circumstances. This Statement clarifies the reporting of equity interests in legally separate organizations as well, It requires a primary government to report its equity interest in a component unit as an asset. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement result in financial reporting entity financial statements being more relevant by improving guidance for including, presenting, and disclosing information about component units and equity interest transactions of a financial reporting entity. _ GASH Statement No. 66 - Technical Corrections- an Amendment of GASB Statements No. 10 and No. 62 Summary The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Cod cation ofAccounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement are effective for financial statements for'periods beginning after December 15, 2012. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement resolve conflicting accounting and financial reporting guidance that could diminish the consistency of financial reporting and thereby enhance the usefulness of the financial reports. 952.835.9090 • Fax 952.835.3261 ww .aemcpas.emn •o City of Mound NEED DATE Page 18 Debt -to- Assets Leverage Ratio (Solvency Ratio) The debt -to- assets leverage ratio is a comparison of a City's total liabilities to its total assets or the percentage of total assets that are provided by creditors. It indicates the degree to which the City's assets are financed through borrowings and other long -term obligations (i.e. a ratio of 50 percent would indicate half of the assets are financed with outstanding debt). Debt Service Coverage Ratio (Solvency Ratio) The debt coverage ratio is a comparison of cash generated by operations to total debt service payments (principal and interest) of enterprise funds. This ratio indicates if there are sufficient cash flows from operations to meet debt service obligations. Except in cases where other nonoperating revenues (i.e. taxes, assessments, transfers from other funds, etc.) are used to fund debt service payments, an acceptable ratio would be above 100 percent. Bonded Debt per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total bonded debt by the population of the City and represents the amount of bonded debt obligation for each citizen of the City at the end of the year. The higher the amount, the more resources are needed in the future to retire these obligations through taxes, assessments or user fees. Taxes per Capita (Funding Ratio) This dollar amount is arrived a each citizen of the City for the Current Expenditures per revenues by the population of fl vnt is, the more reliant the City its the amount of taxes for its operations. This dollar amount is arrived at by dividing the total current governmental expenditures by the population of the City and represents the amount of governmental expenditure for each citizen of the City during the year. Since this is generally based on ongoing expenditures, we would expect consistent annual per capita results. Capital Expenditures per Capita (Funding Ratio) This dollar amount is arrived at by dividing the total governmental capital outlay expenditures by the population of the City and represents the amount of capital expenditure for each citizen of the City during the year. Since projects are not always recurring, the per capita amount will fluctuate from year to year. Capital Assets Percentage (Common -size Ratio) This percentage represents the percent of governmental or business -type capital assets that are left to be depreciated. The lower this percentage, the older the City's capital assets are and may need major repairs or replacements in the near future. A higher percentage may indicate newer assets being constructed or purchased and may coincide with higher debt ratios or bonded debt per capita. 952.835.9090 • F.952.835.3261 -95- , w' .aemcpasxom City of Mound NEED DATE Page 17 Ratio Analysis The following captures a few ratios from the City's financial statements that give some additional information for trend and peer group analysis. The peer group average is derived from information available on the website of the Office of the State Auditor for Cities of the 4" class (population 2,500— 10,000). The majority of these ratios facilitate the use of economic resources focus and accrual basis of accounting at the government -wide level. A combination of liquidity (ability to pay its most immediate obligations), solvency (ability to pay its long -term obligations), funding (comparison of financial amounts and economic indicators to measure changes in financial capacity over time) and common -size (comparison of financial data with other cities) ratios are shown below. Ratio Calculation Source 2009 2010 2011 2012 Debt to assets Total liabilities /total assets Government -wide 75% 72% 74% 78% 34% 37% 33% N/A Debt service coverage Net cash provided by operations/ Enterprise funds 83% 84% 40% 64% enterprise fund debt payments 261,,,u 102% 106% N/A Debt per capita Bonded debt/population Government -wide $ 5,241 $ 5,446 $ 5,772 $ 5,979 $ 2,713 $ 3,125 $ 2,826 NA Taxes per capita Tax revenues /population Government -wide $ 596 $ 657 $ 661 $ 657 $ 399 $ 407 $ 500 A/A Current expenditures per capita Governmental fund current Governmental funds $ 644 $ 639 $ 639 $ 645 expenditures /population $ 625 F 624 $ 640 .0 %A Capital expenditures per capita Governmental fund capital Governmental funds $ 397 $ 218 $ 398 $ 329 outlay / population $ 310 $ 265 $ 229 N /,1 Capital assets %left to Net capital assets/ Government -wide 83% 81% 82% 82% depreciate - Governmental gross capital assets 68% 61% 64% ALA Capital assets %left to Net capital assets/ Government -wide 69% 69% 68% 67% depreciate - Business -type gross capital assets 6 °% 59% 65% N/A Represents the City of Mound Represems Peer Group Average 952.835.9090 • Fax 952.835.3261 -94- w .aemcpas.com HRA Public Housing Fund A comparison of the past three years' HRA Public Housing operations is as follows: Operating revenues Operating expenses Operating loss Nonoperating revenues Capital contributions Change in net position Cash and temporary investments $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 City of Mound NEED DATE Page 16 2010 2011 2012 Total Percent Total Percent Total Percent $ 280,208 100.0 % $ 225,138 100.0 % $ 236,062 100.0 % 364,500 130.1 303,275 134.7 266,751 113.0 (84,292) (30.1) (78,137) (349) (30,689) (13.0) 27,785 9.9 6,704 3.0 19,412 8.2 80,040 288.1 45,967 685.7 15,257 78.6 $ 23,533 267.9 % $ (25,466) 654.0 % $ 3,980 73.8 % $ 92 992 $ 52,673 $ 81,525 2010 2011 2012 _ _ - -__. NOW Operating revenues ` Nonoperating revenues - Operating expenses This is the fourth year the City has been in control on operations for Indian Knoll. The fund has been operating at a loss the past three years. Capital grant funding and non - operating revenues have kept the fund and cash fairly stable. 952.835.9090 • Fax 952.835.3261 -93- w .aemcpas.com Storm Water Fund A comparison of the past three years' Storm Water operations is as follows: Operating revenues Operating expenses Operating income (loss) Nonoperating expenses Change in net position Restricted cash Bonds payable Interfund loan 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 City of Mound NEED DATE Page 15 2010 2011 2012 Total Percent Total Percent Total Percent $ 255,116 100.0 % $ 353 293 100.0 % $ 359 905 1000 % 281,081 (25,965) 110.2 255,072 72.2 257,445 71.5 (10.2) (101,196) 39.7 $ (127,161) 499 % $ 60,904 $ 2,346,070 $ 854 400 98,221 27.8 102,460 28.5 (116,242) (32.9) (116,171) (323) $ (18,021) 5.11% $ (13,711) 3.8) % $ 3,195,158 $ 3,611,573 $ 239,941 $ 168,078 2010 2011 2012 MEN Operating expenses 111010INonoperating expenses Cash and temporary_ investments _ Operating revenues The Storm Water fund increased rates significantly during 2011 which provided for an increase in operating revenues and continued into 2012. Operating expenses and the operating margin remained comparable to 2011. It is important for the City to continue monitoring the funds cash flows in order to meet its debt service requirements. 952.835.9090 • Fan 952.835.3261 -92- w .aemepas.com Recycling Fund A comparison of the past three years' Recycling operations is as follows: Operating revenues Operating expenses Operating loss Nonoperating revenues Change in net position Cash and temporary investments $250,000 $200,000 $150,000 $100,000 $50,000 City of Mound NEED DATE Page 14 2010 2011 2012 Total Percent Total Percent Total Percent $ 203,375 100.0 % $ 203,312 100.0 % $ 175,799 100.0 % 218,826 107.6 213,015 104.8 190,192 108.2 (15,451) (7.6) 30,841 15.2 $ 15,390 7.6 % $ 2,968 (9,703) (4.8) 30,170 14.8 $ 20,467 ]0.0 % $ 27,576 (14,393) (8.2) 29,810 17.0 $ 15 417 8.8 % $ 38,750 2010 2011 2012 Operating revenues MW Nonoperating revenues Operating expenses The Recycling fund annually receives grant funding from Hennepin County which allows the fund to approximate a breakeven during the year. The City should continue to monitor rates so that the negative operating margin is properly supplemented with the grant funding. 952.835.9090 • Fax 952.835.3261 w .aemcpasxom -91- City of Mound NEED DATE Page 13 SewerFund A comparison of the past three years' Sewer operations is as follows: Change in net position $ (]69,740) 12.1 % $ (379,364) (26.6) % $ (615,548) 2.61% Cash and temporary investments $ 184 702 $ $ Bonds payable $ 2,955,779 $ 3,828,843 $ 4,596,902 2,500,000 2,000,000 1,500,000 1,000,000 500,000 2010 2011 2012 RM Operating expenses UmNonoperating expenses ! Cash and temporary investments Operating revenues The net position of the Sewer fund continues to decrease. The operating loss has increased for the last two years, which has been driven mainly by expense increases It is important for the City to continue monitoring the fund's cash flows in order to meet its operating and non- operating expenses for future years. Similar to the Water fund, the Sewer fund has poor debt service coverage. The revenue to debt service ratio is only 18 percent for 2012. Since the fund has no cash available, it is dependent on inter -fund borrowing. 952.835.9090 • Fax 952.835.3261 w ,aemepasxom •m 2010 2011 2012 Total Percent Total Percent Total Percent Operating revenues $ 1,402,765 100.0 % $ 1,425,029 100.0 % $ 1,446,242 100.0 % Operating expenses 1,457,791 103.9 1,700,328 1193 1,914,126 132.4 Operating loss (55,026) (3.9) (275,299) (19.3) (467,884) (32.4) Nonoperating expenses (114,714) (82) (104,065) (7.3) (147,664) (10.2) Change in net position $ (]69,740) 12.1 % $ (379,364) (26.6) % $ (615,548) 2.61% Cash and temporary investments $ 184 702 $ $ Bonds payable $ 2,955,779 $ 3,828,843 $ 4,596,902 2,500,000 2,000,000 1,500,000 1,000,000 500,000 2010 2011 2012 RM Operating expenses UmNonoperating expenses ! Cash and temporary investments Operating revenues The net position of the Sewer fund continues to decrease. The operating loss has increased for the last two years, which has been driven mainly by expense increases It is important for the City to continue monitoring the fund's cash flows in order to meet its operating and non- operating expenses for future years. Similar to the Water fund, the Sewer fund has poor debt service coverage. The revenue to debt service ratio is only 18 percent for 2012. Since the fund has no cash available, it is dependent on inter -fund borrowing. 952.835.9090 • Fax 952.835.3261 w ,aemepasxom •m City of Mound ��NEED DATE Page 12 kJ101JI, Water Fund A comparison of the past three years' water operations is as follows: 2010 2011 2012 Total Percent Total Percent Total Percent Operating revenues $ 1,222,848 100.0 % $ 1,525,082 100.0 % $ 1,672,286 100.0 % Operating expenses 1,108,649 90.7 1,108,019 72.7 1,116,999 66.8 Operating income Nonoperating expenses Transfers - capital assets Change in net position Cash and temporary investments Restricted cash Bonds payable $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 114,199 9.3 (432,692) (35.4) 851,178 (197) $ 532.685 2( 22.8) % $ 347,174 $ 125,429 $ 10 598,438 417,063 27.3 555,287 33.2 (431,169) (28.3) (406385) (24.3) $ (14,106) (1.0) % $ 148,902 8.9 $ 347,830 $ 11,021,000 $ 534,638 $ 11,712,812 2010 2011 2012 Operatng expenses OEM Nonoperating expenses Cash and temporary investments Operating revenues The operating margin of the fund increased significantly over the prior two years due to revenue increases. It is important for the City to continue monitoring the funds cash flows in order to meet its debt service requirements. The current debt service coverage is 126 percent which shows there is sufficient cash flow to cover debt service payments. 952.835.9090 • Fax 952.835.3261 -89' w .aemcpas.cam City of Mound NEED DATE Page 11 Since the City has needed to utilize inter -fund borrowing to finance working capital, it is important to continue monitoring all key element of the business. The specific key elements that lead to the greatest contribution to bottom line are inventory (including pricing and controls) and staffing. We believe the City has been active in evaluating and responding to operating issues as they have arisen in the past. The Office of the State Auditor annually publishes a report analyzing the operation of municipal liquor stores in the state. The most recent year of published information is for the year ended December 31, 2010. The statewide averages for all operations are summarized below. Source: Analysis of Municipal Liquor Store Operations, for the year ended December 31, 2011 Published by the Minnesota Office of the State Auditor 952.835.9090 • Fax 952.835.3261 -88- ,w .aewpas.com Off Sale 2009 2010 2011 Percent Percent Percent of Sales of Sales of Sales Sales 100.0 % 100.0 % 100.0 % Cost of sales 74.9 74.8 74.6 Gross profit 25.1 25.2 25.4 Operating expenses 17.0 17.1 17.0 Operating income 8.1 8.1 8.4 Nonoperating revenue 0.6 0.5 0.6 Nonoperating expenses (0.6) (0.6) (0.5) Income before transfers - 8.1 % 8.0 % 8.5 % Source: Analysis of Municipal Liquor Store Operations, for the year ended December 31, 2011 Published by the Minnesota Office of the State Auditor 952.835.9090 • Fax 952.835.3261 -88- ,w .aewpas.com Enterprise Funds Municipal Liquor Fund A comparison of the past three year's Municipal Liquor fund operations is as follows: Sales Cost of sales Gross profit Operating expenses Operating income Nonoperating expenses Net transfers Change in net position Restricted cash Bonds outstanding Due to other funds $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 S- 2010 2011 Total Percent Total Percent $ 2,738,976 100.0 % $ 2,675,527 100.0 % 2,018,639 73.7 1,997,081 74.6 720,337 26.3 678,446 25.4 (568,003) (20.7 ) (581,533) (21.7) 152,334 5.6 96,913 3.6 (46,013) (1.7) 10,836 0.4 (8,438) (0.3) $ 106,327 3.9 % $ 107,912 $ 740.000 $ 449,833 $ 99,371 3.7 % $ 832,704 City of Mound NEED DATE Page 10 2012 Total Percent $ 2,835,506 100.0 % 2,136,309 75.3 699,197 24.7 (519,965) (18.3) 179,232 6.3 (65,452) (.3) $ 113,780 4.0 % $ 767,763 2010 2011 2012 Sales Gross profit Operating income —0— Cash and temporary investments The gross profit margin has declined for the last 2 years but expense decreases allowed the overall operating income to improve. The gross profit decrease should be evaluated separately since the main drivers are inventory control and pricing. The decrease in gross profit from 2010 to 2012 would translate to $45 thousand effect on the bottom line. The City can also compare its results to statewide averages through Office of the State Auditor's annual report on municipal liquor operations. The gross profit percentage for 2012 is slightly lower than the average (24.7 percent versus 25.2 percent) and the operating expenses are higher than the average (18.3 percent versus 17.1 percent). 952.835.9090 • Fax 952.835.3261 -87- w .aemcpas.com City of Mound NEED DATE Page 9 Capital Projects Funds The capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Included in this group of funds and the fund balance of each at December 31, for 2012 and 2011 is as follows: Fund Major Capital Improvements Nonmajor Municipal State Aid Sealcoat TIF 1 -2 TIF 1 -3 Total Fund Balances December 31, Increase 2012 2011 (Decrease) $ 924,350 $ 814,557 $ 109,793 317,884 496,534 (178,650) 6,493 (30,604) 37,097 63,910 63,910 - (4,413) 86,130 (90,543) $ 1,308,224 $ 1,430,527 $ (122,3031 The City will continue to monitor each fund's activity and ensure any remaining fund balance will be closed when the fund has completed its purpose. 952.835.9090 • Fax 952.835.3261 w .aemcpas.com :- City of Mound NEED DATE Page 8 Debt Service Funds Debt Service funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than enterprise fund debt). Debt Service funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Property taxes - Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax increments - Pledged exclusively for tax increment /economic development districts. • Special assessments - Charges to benefited properties for various improvements. In addition to the above pledged assets, other funding sources may be received by Debt Service funds as follows: • Residual project proceeds from the related capital projects fund • Investment earnings • State or Federal grants • Transfers from other funds The following is a recap of the various Debt: Service fund assets and the related bond principal outstanding: December 31, 2012 Final Total Total Remaining Maturity Fund No. Debt Description Cash Assets Bonds Date 355 G.O. Tax Increment Bonds 2003 -C $ 631,536 $ 632,553 $ 4,272,000 02/15/27 370 201_1A Refunding Bond 324,054 736,305 3,568,715 02/01/24 368 G.O. Bonds 2005 -A 401,923 636,796 1,165,000 02/01/21 375 G.O. Tax Increment Refunding 2008 -A 150,442 150,442 3,950,000 02/01/31 369 G.O. Bonds 2006 -A 402,318 701,419 1,175,000 02/01/22 361 G.O. Bonds 2007 -A 496,167 951,450 2,155,000 02/01/23 350 Mound Transit Center 2006 173,300 173,300 2,777,000 08/01/27 362 G.O. Bonds 2008 -B 354,977 767,012 1,410,000 02/01/12 334 G.O. Bonds 2008 -D 35,744 35,744 35,000 02/01/13 363 G.O. Bonds 2009 -A 266,256 1,231,534 3,330,000 02/01/25 335 G.O. Bonds 2009 -C 30,549 30,549 315,000 02/01/20 364 G.O. Bonds 201 IB 306,773 1,462,630 3,475,000 02/01/32 365 GO Bonds 2012A 63,451 63,451 2,245,000 02/01/28 371 GO Bonds 2012B 50,221 50,221 4,325,000 02/01/23 Total $ 3,687,711 $ 7,623,406 $ 34 197 715 952.835.9090 • Fax 952.835.3261 -85- i w .aemapas.cmn City of Mound NEED DATE Page 7 Special Revenue Funds Special revenue funds are used to account for revenue derived from specific taxes or other earmarked revenue sources. They are usually required by Minnesota statute or local ordinance to finance particular functions or activities of government. Included in this group of funds and the fund balances of each at December 31, for 2012 and 2011 is as follows: Fund Nonmajor Area Fire Service Dock HRA Total 952.835.9090 • Fax 952.835.3261 w .aemcpas.com C. . Fund Balances December 31, Increase 2012 2011 (Decrease) $ 312,082 $ 260,824 $ 51,258 154,646 123,393 31,253 46,132 33,887 12,245 $ 512,860 $ 418,104 $ 94,756 City of Mound NEED DATE Page 6 A more detailed comparison of General fund expenditures and transfers for the last three years follows: Percent of Peer Group Program 2010 2011 2012 Total Per Capita Per Capita General government $ 1,201,380 $ 1,112,840 $ 1,088,263 20.5 % $ 120 $ 125 Public safety 2,154,816 2,240,212 2,299,488 43.3 254 222 Public works 700,981 712,150 772,473 14.5 85 112 Culture and recreation 480,985 430,686 443,842 8.4 49 56 Capital outlay 179,540 347,624 225,447 4,2 25 26 Transfers out 609,940 570,615 482,076 9.1 53 n/a Total expenditures and transfers $ 5,327,642 $ 5,414,127 $ 5,311,589 100.0 % $ 586 $ 541 The above chart compares the amount the City spends per capita, in comparison to a peer group. We have compiled peer group average fund balance information from approximately 120 fourth class cities. The peer group average is derived from information available on the website of the Office of the State Auditor. $1,500,000 $1,000,000 General government Public safety °" Public works - Culture and recreation `° '^° Other 952.835.9090 • Fax 952.835.3261 -83- ww aemcpasx.m A more detailed comparison of General fund revenues and other financing sources for the last three years follows: Source Taxes Licenses and permits Intergovernmental Charges for services Special assessments Fines and forfeits Interest on investments Miscellaneous Transfers in Sale of capital assets Total revenues and other financing sources $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 City of Mound NEED DATE Page 5 Percent of 2010 2011 2012 Total Per Capita $ 4,407,240 $ 4,437,864 $ 4,131,377 80.6 % $ 456 158,351 168,472 145,989 2.9 16 150,409 150,184 121,876 2.4 13 550,404 538,268 385,789 7.5 43 14,547 19,929 39,077 0.8 4 59,190 62,867 58,845 1.1 7 28,609 16,115 3,436 0.1 130,414 134,941 159,347 3.1 18 42 8,438 65,452 1.3 7 5,890 23,690 10,546 0.2 1 $ 5,505,096 $ 5,560,768 $ 5,121,734 100 % $ 565 Revenues and other financing sources 2010 2011 2012 Taxes Charges for services Intergovernmental —K—Other 1 952.835.9090 • Fa 952.835.3261 -82- w .aemcpas.cam ®J t• The 2012 operations are summarized as follows: Revenues Expenditures Excess of revenues over expenditures Other financing sources (uses) Transfers in Bonds issued Sale of capital assets Transfers out Total other financing sources (uses) City of Mound NEED DATE Page 4 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 5,059,100 $ 5,059,100 $ 5,045,736 $ (13,364) 4,832,365 4,832,365 4,829,513 2,852 226,735 226,735 216,223 (10,512) 50,000 50,000 65,452 15,452 122,400 122,400 - (122,400) - - 10,546 10,546 (548,170) (548,170) (482,076) 66,094 (375,770) (375,770) (406,078) (30,308) Change in fund balances (149,035) (149,035) (189,855) (40,820) Fund balances, January 1 '. 2,443,441 2,443,441 2,443,441 - Fund balances, December 31 $ 2,294;406 $ 2,294,406 ` $ 2,253.586 $ 40820) 952.835.9090 • Fax 952.835.3261 i w .aemcpas.00m M City of Mound NEED DATE Page 3 A table summarizing the General fund balance in relation to budget follows $4,000,000 $3,000,000 Percent Percent 45.9% Total Unassigned General of Total Fund of Unrestricted Fund Balance Fund Balance Budget Fund Balance to Fund Balance Year December 31, December 31, Year Budget Budget to Budget 2008 $ 2,092,267 $ 1,675,697 2009 $ 5,096,616 41.1 % 32.9 % 2009 2,119,346 1,588,254 2010 5,328,632 39.8 29.8 2010 2,296,800 1,699,009 2011 5,402,815 42.5 31.4 2011 2,443,441 1,714,408 2012 . 5,380,535 45.4 31.9 2012 2,253,586 1,730,879 2013 4,908,341 45.9 35.3 $6,000,000 - -... ....- . 28.. 6 16 $5,000,000 $4,000,000 $3,000,000 41.1% 39.8% 0 454% 42.5 /a 45.9% $2,000.000 - 32.9% 29.8% 31.4% 31.9% 353% $1,000,000 - $- 2008 2009 2010 2011 2012 2013 Total Fund Balance Unrestricted Fund Balance °°^° Budget 952.835.9090 • Fax 952.835.3261 -80- w .aemcpas.com City of Mound NEED DATE Page 2 Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Financial Position and Results of Operations Our principal observations and recommendations are summarized below. These recommendations resulted from our observations made in connection with our audit of the City's financial statements for the year ended December 31, 2012. General Fund The General fund is used to account for resources traditionally associated with government, which are not required legally or by sound principal management to be accounted for in another fund. The General fund balance decreased $189,855 from 2011. The fund balance of $2,253,586 is 45.9 percent of the 2613 budgeted expenditures. We recommend the fund balance be maintained at a level sufficient to fund operations until the`majdt revenue sources,are received in June. We,feel a reserve of approximately 35 to 50 percent of planned expenditures and transfers ont is adequafe to meet working capital and small emergency needs. The purposes and benefits of a strong fund balance are as follows: Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the governmental fund expenditures. • The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid formulas. We also have seen the State mandate levy limits for cities over 2,500 in population. An adequate fund balance will provide a temporary buffer against those aid adjustments or levy limits. • Expenditures not anticipated at the time the annual budget was adopted may need immediate City Council action. These would include capital outlay, replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. • A strong fund balance will assist the City in maintaining, improving or obtaining its bond rating. The result will be better interest rates in future bond sales. 952.835.9090 ° Fax 952.835.3261 -79- i w .aemcpasxom City of Mound NEED DATE Page 1 Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of Minnesota statutes. However, the objective of our tests was not to provide an opinion on compliance with such provisions. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. We noted no instances of noncompliance with Minnesota statues. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The requirements of GASB statements No. 63 and 65 were adopted for the year ended December 31, 2012. The application of existing policies was not changed during the year ended December 31, 2012. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were capital asset basis, depreciation, compensated absences and other postemployment benefits. We evaluated the key ft relation to the financial The disclosures in the fi sensitive because of the Difficulties Encountered in Performing the Audit that it is reasonable in isclosures are particularly We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated NEED DATE. 952.835.9090 - Fax 952.8,35.3261 -78- w .aemcpas.com 5201 Eden Avenue Suite 250 Edina, MN 55436 Management, Honorable Mayor and City Council City of Mound, Minnesota NEED DATE We have audited the financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Mound, Minnesota (the City), for the year ended December 31, 2012. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated November 2, 2012. Professional standards also require that we provide to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by; professional, standards, is to express opinions about whether the financial statements prepared by management with your:oversight are ;fairly preseted, in all'material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and iperform the audit to obtain reasonable, butatot,absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control over financial reporting. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all such deficiencies have been identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. Asignificant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We did not identify any deficiencies in internal control that we consider to be a significant deficiency. -77- 952,835.9090 • Fax 952.835.3261 Ww'W.aenucpas.com CITY OF MOUND MOUND, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2012 -76- CITY OF MOUND MOUND, MINNESOTA MANAGEMENT LETTER FOR THE YEAR ENDED DECEMBER 31, 2012 -75- L' I UJ LLP Gertili-ecf Public ,4ccowatanis & Couxullams The primary responsibilities of the Finance Department include: developing the annual budget and levy, administering the annual audit, completing all payroll, billing, procurement, payable, and reporting activities on a timely and accurate basis, cash flow management, investments and bonding, union negotiations, aspects of human resources administration and benefits, public housing oversight and reporting, managing the recycling fund and contracts, and managing the technology for the City. In addition, in 2012, we took over the City Clerk (elections, licenses and permits, official records, etc.) and Docks Administration functions. The following general principals have guided my work at the City of Mound since assuming the Finance Director position in March of 2008: Perform more of the long term capital planning in -house as opposed to using consultants • Focus on essential services, collaboration, and best practices • Negotiate long -term contracts with fixed amounts and escalators • Respond to the economic conditions but balance with the need for improvements • Make processes more efficient and eliminate bureaucracy where possible DEPARTMENT NEEDS FOR THE FUTURE I am extremely appreciative of the support management has received from the Council in implementing cost saving initiatives. Now that the City has "right- sized" with regard to staffing, we will need to make processes more streamlined in order to be able to sustain lower staff counts. I ask for your continued support in this endeavor. Opportunities to streamline processes include the following: • Transfer of ownership of Indian Knoll Manor to another entity • Eliminate sunset clauses on electric and gas franchise fees • Automate city council packets • Create long -term dock/slip contracts and bill through UB • On -line permits and credit card processing at City Hall • Develop Access Database for Dock Program Tracking • Combine POSC and DCC again • Move to cell phone reimbursement vs managing contract Some of these can be implemented immediately and some will take time. I will be shadowing other cities in the off -year election in order to be ready for the 2014 election. I will also be participating in the LMC's Clerks Orientation Conference in June and be working toward my Minnesota Municipal Clerk's Certification. Training for department personnel continues to be a priority and I hope additional funds will become available so we can increase our Microsoft Office and Laserfiche proficiencies. Thank you for your support and consideration in these matters. -74- ITi1:4 T, to] I�Zihril Date: April 15, 2013 To: City Mayor and City Council 5341 MAYWOOD ROAD MOUND, MN 55364 -1687 PH: (952) 472 -0600 FAX: (952) 472 -0620 WEB: www.cityofmound.com From: Catherine Pausche, Director of Finance and Administrative Services Subject: Finance /Clerk/Docks Annual Report to the Council My first responsibility is the supervision of staff. The current personnel that report directly or indirectly to me include: NAME TITLE STARTING DATE Collette Roberts Accounting Clerk/Payroll /Accounts Payable 03 -12 -99 Joyce Nelson Utility Billing Clerk/Public Works Admin Asst 05 -31 -77 — 36 years! Amy Stark Joyce's replacement 04 -08 -13 Adam Flaherty Accountant 05 -21 -12 Ron Stanchfield Part-Time Docks Inspector 05 -14 -09 Catherine Pausche Finance Director 09 -01 -06 Some of the larger City contracts I am in charge of include: Common Bond Communities — Property Management of IKM — Expires 12/31/2013 Allied Waste — Curbside single -sort residential recycling — Expires 12/31/2016 SET — leaf and brush drop -off for residents — Expires 12/31/2016 OPUS 21 — Utility Billing Services — Expires 03/31/2018 Hennepin County — Assement Services - Expires 07/31/2013 Kenneth Potts — Prosecuting Attorney — Expires 12/31/2015 City of Orono — Police Services — Expires 12/31/2022 Five Technology — IT /Network Support Services — Expires 12/31/2014 LMCIT — General Liability, Property, Auto and Workers Comp Coverage — Annual LOGIS /Blue Cross /Blue Shield — Employee Health Insurance — Annual -73- printed on recycled paper Mound Fire Department Section: Revision: none Staffing & Standard Operating Procedures Performance Subject: Number: Pages:3 Standard Response Protocol, Administrative Staffing, and Apparatus Sequence Standards- 201.02 Minimum Staffing) I. Scope This standard applies to all types of emergency and non - emergency responses that the Mound Fire Department Staff and Apparatus are dispatched. This standard applies to incidents of all sizes, including mutual aid. II. Purpose • To provide fire officers and firefighters with a guideline that defines the fire department standard response protocol. • To define staffing maximums and minimums by event type, by apparatus type, and apparatus response sequence which meet the accepted National Standards and OSHA Laws. • This standard is to be implemented with life safety as a top priority. III. Responsibilities • All firefighters are responsible for understanding and adhering to the procedure as defined in this document. • The fire officer in each apparatus is responsible for his /her crew, apparatus response sequence, and the number of personnel on the apparatus. • The senior fire officer is responsible for the overall deployment and utilization of department resources to any type of incident including staff, apparatus, utilization, and incident management. IV. General • To work in a safe manner as per the NFPA 1500 Standard for Fire Department Occupational Safety and Health program, which adopts the OSHA Respiratory Protection Standard 29 CFR 1910.134 (g) (4) including the two - in/two -out provision. (Refer to OSHA Standard 29 CFR 1910.134 (g) (4) for detailed information). • To utilize the National Fire Protection Association (NFPA) Standard: NFPA 1720 Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations, and Special Operations to the Public by Volunteer Fire Department 2001 Edition as a guide for fire department operations and deployment. Standard Operating Procedure matrixes for Staffing and Apparatus Response Sequence are defined on page 2 and 3. -72- so- Saint Bonifacius Automatic Aid Project Automatic Aid Protocols with CAD Event Code Types and Response February 2013 CAD programming change details Please program CAD for Automatic Aid to be provided to Mound Fire Department for all geographical areas of St. Bonifacius as follows: 1). St. Bonifacius CAD Zones 81F010 and 81F050. 2). Six CAD event types, weekdays ONLY from 0700 hours —1700 hours APT - Apartment Fire GARAGE — Garage Fire SCHOOL — School Fire BUS — Business Fire HOUSE — House Fire AIR — Aircraft Incident 3). Primary (initial) Automatic Aid Apparatus Response will always be an Engine and Crew as per the matrix that follows. The crew size minimum for an Engine Company will be (4) four firefighters as defined in Mound Fire Department SOP. AIR — Aircraft Incident —i Engine and Crew APT — Apartment Fire —► Engine and Crew BUS — Business Fire Engine and Crew GARAGE — Garage Fire —► Engine and Crew HOUSE — House Fire ► Engine and Crew SCHOOL — School Fire — ► Engine and Crew 4). Secondary Automatic Aid Apparatus Response will be optional and /or as needed. The secondary response will be based upon the specifics and the seriousness of the incident, safety concerns, requests for resources from incident command, and the availability of Mound fire personnel. The crew size minimums will be as defined in the Mound Fire Department SOP. AIR — Aircraft Incident --- o- Engine and Crew APT — Apartment Fire —► Aerial Ladder and Crew BUS — Business Fire — ►Aerial Ladder and Crew GARAGE — Garage Fire — o Engine and Crew HOUSE — House Fire ► Engine and Crew SCHOOL — School Fire —0 Aerial Ladder and Crew 71- -49- TO: Pat Kuchera, Tele- Communicator FROM: Gregory S. Pederson, Mound Fire Chief Shane Weber. Saint Bonifacius Fire Chief SUBJECT: St. Bonifacius Fire Protection CAD Changes for Automatic Aid DATE: February 22, 2013 I have met with St. Bonifacius Fire Chief Shane Weber, and St. Bonifacius Officials regarding automatic aid to the City of St. Bonifacius. This past week the automatic aid contract has been approved by both city councils (Mound and St. Bonifacius); therefore we have agreed to proceed with the CAD programming changes for automatic aid. We will test this procedural change for 12 months and then evaluate the program. Please initiate the CAD programing changes to reflect the automatic aid to the City of St. Bonifacius as described on the attached summary. This change will initiate a dual fire department response as stated on the attached sheet. The fire department response changes as shown will be on what we consider to be the six "High Risk" CAD Event Code Types. We are requesting that these CAD programming changes are implemented and effective on March 1, 2013. Thank you for your help on this project. Best Regards, Gregory S. Pederson Fire Chief, Mound Fire Department Cc Chief Paul Falls, Minnetrista Police Brenda Fisk, St. Bonifacius City Clerk Attachment Shane Weber Fire Chief, St. Bonifacius Fire Department -70- -48- The costs of Automatic Mutual Aid for Mound Fire and St. Bonifacius Fire will be tracked and determined each year, and billed consistently among fire agencies as described in mutual aid financial agreement. Duty Officer Response Support: The Mound Fire Department will initiate and maintain a "Duty Officer" response program beginning in January 1, 2013 for the purpose of efficient operations. • The Duty Officer (program) will handle low risk and service call event types (I.e. carbon monoxide alarms, false fire alarm trips, or smoke in the area calls) The Mound Duty Officer will be available to respond to St. Bonifacius Fire events during specific days of the week, times of the day, and for certain CAD Code Event Types. The need to utilize this program will be determined by and configured by the St. Boni and Mound Fire Chief. The Mound Duty Officer will be responsible for gathering call out information and generating the incident report, unless a St. Bonifacius Fire Officer assumes command and takes the report. The costs Mound Duty Officer Responses and hours will be tracked and determined each year, and billed consistently among fire agencies as described in financial agreement. Automatic Mutual Aid and Duty Officer Program ® The Automatic Mutual Aid program and the Duty Officer program will be evaluated periodically to measure the success, effectiveness, and performance criteria of the programs. Changes to the programs will be made as necessary to continuously improve these programs. Effective Date: January 1, 2013 Gsp 110512 -69= -q7_ Mound Fire Department Automatic Mutual Aid Response Plan Information To the City of St. Bonifacius Automatic Mutual Aid: Beginning on March 1, 2013 the Mound Fire Department will begin providing Automatic Mutual Aid to assist the St. Bonifacius Fire Department within the City of St. Bonifacius. The Mound Fire Department will provide Automatic Mutual Aid to assist as established by the St. Boni and Mound Fire Chief. The Hennepin County Sherriff Dispatch Computer Aided Dispatch (CAD) and Automatic Mutual Aid parameters will be implemented based upon specific days of the week, times of day, and high risk event types, as determined by the St. Boni and Mound Fire Chiefs (refer to attachment A for event type details). The standard initial response by Mound Fire when providing automatic mutual aid inside St. Bonifacius will be predetermined and will be based upon specific high risk criteria, and CAD Event Codes or Call Type (refer to attachment A). ® The Incident Commander and primary management of the fire scene will be the responsibility of the First Arriving Unit Incident Command Officer or an Officer designated by the primary fire service provider. ® Mound Fire will not respond with apparatus or crews beyond the standard initial response unless requested to do so by the Incident Commander, an officer from the first arriving unit, or an Officer from the primary responding fire agency. ® All other mutual aid response rules and procedures will be per the Hennepin County Fire Chief Association Mutual Aid Agreement, and/or the Lake Region Mutual Aid Agreement. The exception will be the billing for costs as agreed upon by all parties. -46- O O �-. O '--' � O o A. U A N c, C,4 _ cq 000NM am O V Y U O O to 9 Y .>. v' p U CS z .°" U •(n C,3 ii (N •Y ii y f/NI j w g U U Cd R 0 CD G U A w- U >, G A Y K a b '� y Q b o o o G � 3 O to «U+ y O O cC '.' O W ti U Cd z Q.cd CD CIO U N N R, W rNi, ..C. W b ai A y 0.' A N W m N Sqq a) aU+ V 4. C3 py O VI �++ O..V !. iti U S� •--• W ti �". CL Y inn N Y Y >i w pp'L} Ca OA y3 C� Cd "O U U U •L7 ^C A d% ca Ufa ��UdU� aU Naw n o kn � � W T .—r 'r N M N f. >i C. V FK O ca Y ca G 0 U N N a5 Y >� oN > n 3 w a o on U rn w to o 44 a O U ca U cl C�d Y y U O •� a�i� y U•j� U A U L y b Cd " G w >, o ti 'd 'b M o A .bj) v N W > Zz z Q) c7 O d w v o oT aa)i o w Q ..>. Q•' �:a >� G U ice. N U ijj � W # � H W -67-n uw H ® ® ® ® q -45- N_ O N D\ O MT ti Mound Volunteer Fire Department Relief Association, Inc. April 4, 2012 Detail and Justification of Pension Plan Changes Background: The existing Mound Volunteer Fire Department (MVFD) Relief Association Pension Plan has been very successful and well funded since the plan inception in 1972. Our current plan type is a Monthly Benefit Plan which is extremely rare and somewhat obsolete considering today's relief association pension plan standards. IMPORTANT NOTE: The Minnesota State Auditors Office 2011 reports confirm that our pension plan is one of only 5 plans of the monthly plan type within the state. There are a total of 710 relief pension plans, so our plan is in the less than 1% category as compared to others. Current Situation: as shown in the DRAFT Actuarial Valuation Report dated April 4, 2012, the funding level of the MVFD pension plan has rebounded and is now very good, especially when compared to many other public pension plans that are significantly underfunded. The Mound firefighters have made a conscious decision to keep their wages very low, and therefore contributed money into their pension fund. The time to increase the pension plan benefits is here; as there has not been any pension benefit increases for the past 10 years (refer the Actuarial Valuation Report and to 40 year financial summary included). 3. Critical Factors and Considerations: the biggest single issue and challenge facing the U.S. Fire Departments is Recruiting and Retention of Volunteer Firefighters. A competitive and top notch pension plan providing fair and equitable benefits is a top priority item for the long term success of the Mound fire department. The Mound fire departments ongoing (and past) success with maintaining the high levels of firefighter staff and long term employee commitment dependent on the quality of the pension plan and the plan benefits. 4. Other Benefits/Risks: the benefits of the proposed pension plan changes are many, but the risks are very minimal. The critically important benefits include: potential to lengthen careers of key firefighter staff, better control of costs related to fire department budget, and a more modern pension plan that compensates firefighters for the period of time (or years) they serve. 5. Financial Considerations: the timing of the proposed pension plan changes has been delayed for many years relative to affordability. These changes are now clearly within our means and can be supported by the fire department budget long term. The State Benefits Guidelines, and our Actuarial Valuation Report would allow for a pension benefit increase maximum amount of $10,000 per year of firefighter service, but this proposal asks for $5,585 per year of service, which is very prudent and realistic. 6. Department Goals and Anticipated Outcomes: we expect the changes to help facilitate and maintain our successful firefighter volunteer staffing, and delay the need to hire part-time or full time hires (continue to use volunteers). Our staff is, and always will be our most important department asset. Approval of this plan would also create more pension fund financial stability and help lower our long term financial risk and should reduce the cities unfunded liability. Key Activities, Next Steps and Timing: upon city council approval, the final Relief Bylaw language defining the detailed pension plan changes will post for a 30 day review and then be voted on by the entire MVFD Relief Association membership in July 2012. The two phase implementation schedule for pension plan benefit changes is noted in the DRAFT Actuarial Valuation Report. The MVFD Relief Association Board of Trustees will finalize numerous Bylaws language changes that include the following: State of Minnesota Statute Law changes, beneficiary language changes, return tr-66 -'ice and return to duty clauses, and pension benefits accrual language related minimum job performance requirements. -44- CITY OF MOUND RESOLUTION NO. 12- RESOLUTION TO APPROVE CHANGES TO THE MOUND FIRE DEPARTMENT RELIEF ASSOCIATION PENSION PLAN WHEREAS, a pension plan alternatives study was completed by Van Iwaarden Associates to provide actuarial cost estimates for the impact in changes in actuarial assumptions and benefit levels of proposed changes to the Mound Fire Department Relief Association Pension Plan; and WHEREAS, the proposed changes were presented to and approved by the City of Mound City Council at the April 10, 2012 regular meeting; and WHEREAS, the proposed changes were approved by the required majority of the Mound Fire Department Relief Association members at the Annual General Meeting held on October 1, 2012; NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Mound, Minnesota, hereby approves the changes to the Mound Fire Department Relief Association Pension Plan as summarized in Exhibit A, and made a part herein. Adopted by the City Council this 23rd day of October, 2012. Attest: Bonnie Ritter, City Clerk -65- -43- Mayor Mark Hanus Fact ♦ / ,' Of the 1,103,300 United States Firefighters, 7 of every 10 is a volunteer. Volunteers, if paid, would cost taxpayers an estimated $42.3 billion per year. o 68 % of the 30,165 fire departments are all or volunteer (or paid -on- call). 768.150 volunteer firefighters in U.S. serve urban, suburban, and rural areas. o There has been a decline in the number of active volunteer firefighters in the U.S. by approximately 130,000 from 1984 to 2010. The Mound Fire Department has 42 members, 41 that are paid -on -call volunteer, with one full time Fire Chief and one part-time Administrative Assistant. The Number of Volunteer Firefighters in the United States is declining: The volunteer fire service is a long- standing tradition in the United States that often encompasses families' generation after generation. Unfortunately, it is also a tradition in danger of weakening. Many fire departments across the nation today are experiencing more difficulty with recruiting and retaining members than ever before. This is demonstrated by the decline in the number of active volunteer firefighters nationally, which is estimated to have dropped from 897,758 in 1983 to 768,150 in 2010. Effects of the Decline in Volunteers: The erosion of the volunteer fire service in America has economic and social effects. The economic ramifications are obvious as towns are forced to hire paid firefighters in place of volunteers. The 68 percent of the country served exclusively by volunteer firefighters relies on them to be the first line of defense in almost any type of emergency, from fires to floods to medical emergencies and hazardous materials spills. Volunteers are the key initial responders that solve most problem emergencies before the arrival of state or federal back -up emergency response teams. .I f: \do -dc -ac study with 2012 updates \did you know - 041212.docx -42- Mound Fire Department 2011 and 2012 Goals and Strategic Plan Initiatives (for Fire Chief Greg Pederson) I. Personnel / People a. Increase firefighter staff to 40 members b. Complete comprehensive and diversified training of firefighters c. Implementation of "Duty Officers" d. Research feasibility of "Duty Crew" e. Maintain volunteer firefighter commitment f. Reorganize department officers structure 11. Budget and Financial Management a. Develop a long term financial plan for existing station #1 b. Complete a cost analysis & budget for Minnetrista fire station c. Develop a operations /financial plan for a two fire station operation d. Evaluate existing Fire Contract Formula and change as needed e. Restructure and implement New Fire Contract formula for all f. Pursue other funding options i.e. grant money g. Establish hourly rates for firefighter staff and apparatus h. Refinance P.S. Facility Bonds for savings and lower interest rate i. Complete Pension Plan Study, Improve for Long Term Success Ill. Equipment and Supplies a. Rethink, plan and budget apparatus replacement program b. Implement apparatus replacement plan cost saving initiatives b. Continue to do annual replacement of essential safety equipment c. Implement purchasing and cost control plan d. Purchase mutliple sets of Firefighter Turn - out -Gear thru JPA IV. Facility a. Maintain existing facility b. Consider other facility needs i.e. Minnetrista c. Work on final closeout of Mound P.S. Facility project d. Refinance Facility Bonds (listed above) V. Fire Prevention and Inspection a. Implement comprehensive fire inspection program b. Focus on Fire Code Services and Enforcement -63- -41- Status Completed in 2004/05 - ongoing Completed in 2005 - ongoing Implemented part-time 2005 Completed - but not implemented yet Completed, but ongoing Completed in 2004/05 Completed for Station #1 in 2005 Completed proposal Minnetrista 2006 Completed for Station #1 & 2 in 2006 Completed in 2006 and 2010 Completed in 2006 and 2010 Ongoing work in progress (grant list) Completed in 2006 Working on NOW Completed in 2011 Revised plan in 2006 - Major Progress 2010 Implemented in 2006 with more in 2010 Ongoing Implemented in 2005 - ongoing 25 Sets purchased in 2011 Ongoing Project Plan /Budget complete 2006 Project complete - slightly under budget Refinance in 2012 Started in 2005, strong active program Ongoing suucessfui project Mound Fire Department February 2004 Strategic Plan for Successful Fire Operations Purpose: The Mound Fire department must have a Short Term and Long Term strategy for continued successful and efficient operations. The strategic plan for successful operations must include a wide range of diverse services, plus maintain a cost effective and reasonable budget. Our goal is to provide the highest level of emergency response and customer service to our residents. The strategy must include a well thought out comprehensive plan that assures the highest level of public safety services to our communities. Scope: The strategic plan for continued successful operations must consider the service requirements of our current customers, plus be comprehensive enough to envision growth and future needs associated with changing community dynamics. The plan must focus on and consider the critical necessary resources to support the ever changing fire service operations. These key critical recourses would include people, equipment, facilities, supplies, and financial support. Key elements: The critical components of any fire department are quite simple and basic. Take away any of the three basic components and the operation will not succeed. Even though all three components are critical, the priority of importance is as follows: 1. Personnet/People: • Personnel - numbers, location, and time of availability • Adequately trained and diverse firefighters • Well trained officers • Firefighter commitment 2. Equipment and Supplies: • Apparatus — trucks, boats, trailers, etc. • Firefighter turnout gear and safety equipment • Basic tools and equipment of all types (i.e. fire hose) • Specialized tools and equipment (i.e. extrication tools, water rescue suits) • Supplies to support all operations including: fire, hazmat, rescue, etc. 3. Facilities: • Response facilities to store apparatus, equipment and supplies • Training facilities for firefighter training and education • Maintenance facilities for maintaining and cleaning everything • Centralized facilities for efficient response times • Additional or support facilities for large scale events and emergencies GSP -62- -40- �-1 cV t5 <N t1i W -61- -39- P• P• P• P• P• P• P• •F+ V V da MFD Grant summary continued Applied for but not funded 2006 Self Contained Breathing Apparatus $ 126,310* Homeland Security 2011* (for daily use, rescue, and general response) $ 9,750.00* Assistance to FF 30 new sets of firefighter boots Grant program 2007 Self Contained Breathing Apparatus $ 109,543* Homeland Security 2011 * and Breathing Air fill Compressor $ 31,915.00* Assistance to FF 6000 PSI Breathing Air Compressor Grant program 2008/09 Tanker Pumper 2500 gallon Apparatus $ 173,601* Homeland Security 2006/07 with 1,000 GPM pump $ 5 — 6 million* Assistance to FF Area Fire Training Academy site Grant program 2008/09 Training funding assistance — Driving $ 19,130* Homeland Security Fire Officer II, HazMat, Fire Motor Assistance to FF Operator Grant AFG program 2009 Firefighter Training — various classes $ 15,975* Homeland Security AFG-FEMA 2009 Aerial Ladder Truck Refurbish or Replace $ 225,000* Homeland Security $935,000 AFG - FEMA Currently Working On Year Description of grant items $$ amount Source 2011* Personal Protective Equipment $ 9,750.00* Homeland Security 30 new sets of firefighter boots AFG — FEMA ($ 319.00 per pair) 2011 * Bauer High Pressure 13 CFM $ 31,915.00* Homeland Security 6000 PSI Breathing Air Compressor AFG — FEMA with fill containment system, plus install costs 2006/07 Federal Funding to clean up Western $ 5 — 6 million* U.S. Economic Area Fire Training Academy site Development Ground contamination issues Administration * NOTE: indicates some matching funds required, either 5% or 10% -60- 2 -38- Mound Fire Department Fire Department Grant Summary Year Description of grant items 2003 Life Safety Trailer for HazMat - fully equipped with decontamination and detection equipment. 2003 2004 2004 2005 2006 2009 2010 800 MHz Radios — mobiles and portables Federal funds to investigate for cleanup of the Western Area Fire Training site Firefighter Safety — Fill station, Thermal Imaging Camera, Gas Detector Self Contained Breathing Apparatus (air tanks and masks for firefighters) Mobile Data Computers (MDC) for Installation in fire apparatus — 3 each Radio Grant for 800 MHz Portable and $$ amount $ 39,850 $ 30,800 $ 242,500 (T) $ 24,250 (M) $ 23,185 $ 15,750 $ 15,000 Source UASI/DEM HC Emergency. Preparedness Metropolitan Radio Board U.S. Economic Development Administration FEMA Firefighter Grant program UASI/DEM HC Emergency Preparedness UASI/ Homeland Security $ 13,225 Metro Emergency Services Board - PSIC Grant Gas Detector Monitors and Calibration System $ 3,896 AWARDED $1900 2011 Rehab, Decon, and HazMat Equipment for $ 6,300 Life Safety Unit, including Gas Monitors, Cooling Chairs, CO Monitors, Misting Unit 2012 Motorola Fire Pagers — CenterPoint Energy $ 1,000 Matching grant to buy 4 firefighter pagers 'dotal $ 171,260 -59- 1 -37- Centerpoint Energy (50% match required) HCEP/UASI Homeland Security CenterPoint Energy Community Partnership h N r+y it d b5 tV •� G � O � �w^ o c 0 G O W O � c p b "Y cd ~ C, O c Y U � bq NU O O Nn 3 clO U U iC ir" O L) O O q � p •� p w v cd u N > en U Ly Ti ss 0 o O M 3 O 't O Y O th.. O bD � N Cl, O � > U c w58 -w N M V t •--� -36- N_ O N N O n O v b � bA M C U 69 GO,) d t. t3. 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O bD � N Cl, O � > U c w58 -w N M V t •--� -36- N_ O N N O n O v b � bA M q 0 'b M 0 U ai O a ai bA 0 U a 0 i� G, Q �V G' F� N y o w •b G A U pU y Y o b to o •U C 0 U Q s• o o w o o VD Q. r {yid -° Y o °� •� owe• �+ � C � � y C6 8 [6 fC �o ou N Y a rA OV rA on a� ti v v a p a s Y a Cd U 8 on o v a G ° 4 on 6 v a to o a 0 o o b o w Y � on C m c 3 ¢ w 0 o b o w a a o > ro o C vd�b a w o a N W O Y V C 6� Q � v N COI O N 'A •-+ 00 00 H 6s -�s Is 6n z 0 ° a w w o en o • vj Fi5 w b S's ¢ U w C % > > b w � w w n o ri c a a o ccca WV a H p^ tj cl N od •� _° q dv U U LL � A. S�, •O' b -57- � L O O O O O -35- q 0 'b M 0 U ai O a ai bA 0 U a 0 i� G, Q �V G' F� N V p N O ) ; J p T O c) O O N r O �O U O bA O U ti O U �r O y Y y 3 p 00 ccf Y O .cdn O 40 U V ra O •`n+ U OCC 'n c3 ol M r. cC w U % U U N ° �Y O � � U � v ❑ V :� }}•�� Y O Q r+ O h w F4 T Vj U � O O O O O O :1 O O n O � vl 00 vi O w O1 oo 00 69 69 69 69 69 69 69 GS 69 69 Cl 00 W M C 7 Cl 00 V1 Q� W F". O OM V V 69 69 69 69 &9 69 0h0 69 69 69 y0., 69 69 kn OO O co M O O Y O A N iii W U O �n 000 � aO.� � • � N a�i r+ O 3 3 U `� N a`oi A W 3 x L) a z U �+ U yy� Cd L7 ° a N V P. 0. 9L, x H i= CIO M M M M .--i O O -56- ,M-� N N M 0I y N N O O O O Cl O O � O O -34- Purchase one additional SUV vehicle (as needed) to support the new "Duty Officer Program" at a cost of approximately $32,000. This is and will meet a customer service demand and also be a department staff efficiency project. Continue to make progress on the Apparatus Replacement and Efficiency Plan Project: address the 1981 Sutphen Aerial Ladder Truck replacement needs and consolidate old apparatus /fleet by selling off old apparatus. The above listed topics are very important and should be considered and discussed as part of our budgeting process for the future. Other financial considerations measures for 2013 are: 2013 Capital Equipment Purchases: • Due to budget constraints, there is no capital dollars allocated for new spending in this budget for 2013, with the one exception being the previously mentioned SUV Duty vehicle. • The existing Self Contained Breathing Apparatus (SCBA) lease to own contract for 24 previously leased units ends in 2012. The annual lease to own cost of $17,200 savings will be apparent in 2013, and I have designated the funds toward other needs. • Replacement of 1981 Sutphen Ladder Truck, and all related concerns including replacement options and finances will be discussed at November 2013 Fire Commission meeting. Simply put, this project is on hold due to very tight budgets and financial limitations. • We still have unfunded Capital Equipment expenditures from 2012 and several items from previous years have been put on hold (ongoing delay due to tight budgets). 2013 Staffing Items for Consideration: • Careful consideration of reorganizing or restructuring the firefighter staff hours and response based upon a reconfigured plan, which may change some staff to part time duty officers, and reallocate firefighter wages or salary. • Implementation of a duty officer or duty crew program on certain types of emergency calls (will be small $$ savings or no savings at all). The Fire and Rescue Shared Services Study project with Minnetrista and St. Bonifacius may have an impact on the direction we take. 2013 Potential Savings or Revenue (and beyond): • We will save approximately $18,000 in debt service (interest) on the Fire Department Public Safety Facility bonds based upon refinancing the Bonds in 2012. This savings will be achieved every year for the next 12 years. WOW! • Increasing the Mound Fire Department revenue generated by increasing service protection areas in the cities of Minnetrista and St. Bonifacius. -55- 2 -33- August 29, 2012 TO: Kandis Hanson, City Manager FROM: Greg Pederson, Fire Chief SUBJECT: 2013 Mound Fire Department Budget (Proposed July 25, 2012) On July 25, 2012 the Mound Fire Commission met for our regularly scheduled quarterly meeting. At the meeting the group discussed and accepted the 2013 proposed Mound Fire Department budget which reflected a 1.76% percent increase over the 2012 budget. Important note: the fire budget (which was approved by the Mound Fire Commission) is based upon business as usual, meaning the current budget has no $ provision for service area changes within in the City of Minnetrista. The Minnetrista, St. Bonifacius, Mound Fire and Rescue Shared Services Project will likely continue and be implemented in 2013. This project will have an impact on both the revenue and expense side of the 2013 MFD Budget. The final 2013 MFD Budget will very likely be different from this proposed budget The 2011, 2012, and 2013 year budgets were all discussed at the Fire Commission meeting as we attempt to meet immediate department needs, look ahead, and consider various other revenue generating options. The current priority projects discussed include: • There is a long list of budget challenges and department needs that must be considered (and addressed) for the future. The budget challenges include equipment and supplies, apparatus, administration and staffing, and facility. Please refer to list for more details o I have prudently budgeting more $$ to support the implementation of the Fire Relief Pension Plan changes and improvements to be implemented this fall 2012. • Increasing the 2013 Budget in specific areas to meet or support specific projects including the reinstatement of full time administrative assistant. i Complete Fire and Rescue Shared Services Grant Project with Minnetrista, St. Boni Fire and Mound Fire: evaluate study results and implement necessary changes to improve fire protection services to Minnetrista and other cities. • Evaluate and restructure many aspects of the department staffing plan including: redistribution of Officer and firefighter pay including salaries, hourly pay, utilization of Duty Officer or Duty Crew Programs and possibly assigned shift work. -54- 1 -32- r.+ C@ 6J A 7.+ ..a -31- r-1 0 N 0 N 0 .. 0 w, O ~ O M O V � oNO 7 O oM0 00 O ti N 69 b9 69 69 69 69 69 69 d eti M M ti 7 00 M C7, -Ir 0 O O O O O O 00 00 en O M O b O O M O up l M 00 1 1O n M N 00 W M O N \O N \O M r- =j N b4 69 69 69 on b9 69 69 5 N v ,1 � N rw au H kr) � � o •" O N n N kn C O M O N 69 Ff3 69 �n Ff3 69 64 Ef3 Q U ' •� U ^ O6 ti y Q x v S U Cr" C Y 'j' T% cn cjo •v F W U y k . o on p U s, b p on N id o y b 1 q u •a. n ro U CIO O U c� U -53- -31- r-1 0 N 0 N 0 ..